Sustainability Report 2015/16

Our Approach to Sustainability 1 3 2 5 Low Significance to Business Importance to Stakeholders Human Rights 20. Human rights and non-discrimination 21. Freedom of association and collective bargaining 22. Child labour and forced labour High priority Low priority Materiality Matrix Sustainability Aspects Considered High High Economic and General 1. Economic performance 2. Market presence 3. Indirect economic impacts 4. Procurement practices 5. Compliance 6. Grievance mechanisms Materiality Analysis The stakeholder engagement exercise provided a basis for identifying and prioritizing aspects to be covered in this report through materiality analysis, including: Step 1: Identifying ESG Aspects – Eighteen material aspects were identified from a list of 29 in 2014/15. This year, the list of aspects reviewed was based on the ESG Guide, media coverage on sustainability issues and the latest sustainability trends of the industries in which SHKP operates. For this reason, we decided to separate GHG emissions and energy into two standalone aspects. We also removed security practice from the list as the associated risk is minimal to the Group. Step 2: Ranking ESG Aspects – Some 400 stakeholders were asked to rank ESG aspects using a scale of 1 to 6 (1 = of lowest importance and 6 = highest). They were also asked whether the material aspects from last year should still be covered in the report, or if additional aspects should be considered. Step 3: Result Validation – The materiality results were validated by qualitative feedback collected from focus groups and peer benchmarking. The recommended material aspects were then endorsed by the Sustainability Steering Committee. A total of 22 material aspects were identified this year. 11 10 14 9 8 7 12 13 17 15 16 18 19 29 21 20 4 25 23 24 Environment 7. Materials 8. Energy 9. GHG emissions 10. Water 11. Biodiversity 12. Waste 13. Sustainable buildings 14. Environmental impacts of transport Workplace Practices 15. Employment practices 16. Employee engagement 17. Occupational health and safety 18. Employee development and succession planning 19. Diversity and equal opportunities Society 23. Community investment 24. Anti-corruption 25. Public policy and advocacy 26. Anti-competitive behaviour Product Responsibility 27. Customer satisfaction and responsibility 28. Customer privacy 29. Affordable housing in Hong Kong 27 28 6 26 22 9 Sun Hung Kai Properties Limited Sustainability Report 2015/16