Sustainability Report 2015/16

Message from the Sustainability Steering Committee We are pleased to present the Group’s 2015/16 Sustainability Report. This report details the Group’s efforts and achievements in advancing sustainability in society and cementing business continuity to create long-term value for customers, employees, business partners, shareholders, investors and the wider community. We have adopted the full Environmental, Social and Governance Reporting Guide issued by the Stock Exchange of Hong Kong last year, to illustrate the positive impact we have on people and the home we share. We also expanded our stakeholder engagement to include more relevant groups such as social media agencies and key opinion leaders, to shape strategies for the long-term viability of our business and the community. The insights gained in this exercise and previous ones show that stakeholders continue to associate the Group with superior building and service quality. The Group is a major property developer and landlord in Hong Kong and aspires to create a better community for all in the spirit of Building Homes with Heart. A customer-focused culture and the quest for ever-higher quality underpin the Group’s premium brand. This commitment inspires our confidence as the first developer to offer a three-year quality guarantee on new residential units in Hong Kong and helped the Group achieve impressive property sales and satisfactory margins over the reporting year, along with sizable and steadily growing income from its premium rental portfolio. These solid results point to an encouraging future for the Group and reinforce confidence among shareholders and investors. An emphasis on two-way communication with stakeholders enables the Group to understand and respond to their diverse needs. The SHKP Club celebrated its 20th anniversary during the year and remains an effective bridge to current and potential customers and the wider public that helps the Group stay abreast of and respond to changes in the market. The well-being and continuous development of our staff are fundamental to the Group’s commitment to quality and sustainable development. The unique SHKP Quality Academy encourages continuous learning so that people can fulfill the Group’s quality pledge by staying up to date and broadening their horizons with the latest professional knowledge and skills. As a responsible corporate citizen, we strive to minimize the environmental impact of our developments by using resources responsibly, following green building initiatives, selecting suppliers with sound environmental practices and promoting awareness among employees, business partners and the public. The Group has supported the government’s waste reduction and climate change policies and continuously improved the energy efficiency of 55 of its major investment properties in the past five years, with a significant improvement this year over last. The Group’s Building Homes with Heart Caring Initiative provides the framework for its care for people in different age groups and sectors of society for an inclusive, harmonious community. In this spirit the Group has made a commitment to donating a site in Yuen Long to the Hong Kong Sheng Kung Hui Welfare Council for the city’s first purpose-built service facility with a youth hostel, special childcare centre and home for the elderly to foster intergenerational harmony. At the same time, the SHKP Reading Club continues to stage various programmes to promote an appreciation of reading and stimulating young people’s intellectual development and life values. We recognize the importance of balancing mental and physical well-being, so the Group was title and charity sponsor of the first Sun Hung Kai Properties Hong Kong Cyclothon organized by the Hong Kong Tourism Board, and staged the fourth SHKP Vertical Run for Charity – Race to Hong Kong ICC during the year to promote sports for charity in the community. Sustainability will remain an integral part of the Group’s philosophy as it moves forward, and we will continue with a broad spectrum of efforts to create more long-term value for stakeholders and work for the betterment of society. Sustainability Steering Committee December 2016 2 Sun Hung Kai Properties Limited Sustainability Report 2015/16