The Hong Kong Productivity Council (HKPC) was commissioned by Swire Properties Limited (Swire Properties) to verify the Swire Properties' Environmental, Health & Safety (EHS) Review 2006 (the 2006 Review), which focuses on Swire Properties' EHS performance in 2006. The objectives of HKPC's verification work are to:

• Assess whether the scope of the 2006 Review covers all significant issues in relation to Swire Properties' EHS performance;
• Assess whether the selected statements and data within the reporting period and presented in the 2006 Review are accurate;
• Assess whether the data collection and information management systems used to prepare the 2006 Review are reliable; and
• Provide recommendations for future reports.

Our verification procedures comprised a review of the 2006 Review, selection of a representative sample of statements and data and interviews with Swire Properties' representatives with accountability for preparing the 2006 Review. During the interviews, the documented supporting materials relating to the selected statements and data as well as Swire Properties' EHS management practices and initiatives were explained to and examined by our independent verifiers.

We have concluded that:

• The 2006 Review is considered to be comprehensive and provides an overview of Swire Properties' EHS recent initiatives and performance especially in providing a clear approach to address the Clean Air Charter;
• The selected statements and data examined during the verification process, with minor amendments subsequently made to HKPC's satisfaction, are consistent with the source materials reviewed and reflect an accurate account of Swire Properties' EHS performance;
• The presentation is considered to be appropriate and effective in communicating the relevant messages; and
• The data collection and information management systems, including the EHS and Energy Databases used, are considered to be generally organised and effective.

Swire Properties is encouraged to consider the following in the preparation of its future reports:

• To continue involving stakeholders in the reporting process in order to better understand the stakeholders' major information needs. A summary of stakeholders' views collected and how Swire Properties addresses them will add further values to the quality of reports;
• To further enhance the readability through adopting a more visual presentation format, which highlights major achievements within the reporting year and facilitates comparison with the target(s) established previously for key performance indicators; and
• To move towards sustainability report with reference to the Global Reporting Initiative's Sustainability Reporting Guidelines in future reporting. In particular, reporting on economic performance can be included by identifying and reporting on appropriate performance indicators.

K L Tsang
General Manager
Environmental Management Division
Hong Kong Productivity Council
18^th June 2007