Sustainability Report 2015/16

Our Approach to Sustainability Sustainable development is an integral part of SHKP’s belief in Building Homes with Heart. We promise to create sustained values for our stakeholders by incorporating environmental, social and governance aspects into our day-to-day operations and risk management approach. To achieve this, we maintain a high standard of corporate governance to oversee and implement the comprehensive policies that drive sustainable development. Our robust corporate governance structure plays a pivotal role in our approach to sustainability by encouraging internal communications, enhancing transparency and building trust with our stakeholders. Corporate Governance Our robust corporate governance framework provides a solid foundation for sustainable development. We have enhanced our accountability and transparency by upholding high standards in business ethics and corporate governance in all areas of our operations, thus building stronger trust with our stakeholders. The Board continues to have overall responsibility for ensuring effective corporate governance across the Group. Part of this is to maintain sound and effective risk management and internal control systems, in order to safeguard the Group’s assets and stakeholders’ interests. ESG-related risks are considered when formulating business strategies. During the year the Audit Committee was renamed the Audit and Risk Management Committee to better reflect its role in risk management. Chaired by Eric Li, the Committee’s members include Dicky Yip, Donald Leung and Norman Leung, all of whom are Independent Non-Executive Directors. The Committee is provided with sufficient resources to perform its duties, and its updated terms of reference are posted on the websites of the Group and the Hong Kong Stock Exchange. More information on corporate governance can be found in our Annual and Interim reports or the corporate governance section of our corporate website: http://www.shkp.com/en-US/Pages/corporate-governance-overview The Group maintains an open and transparent relationship with our stakeholders through effective communication, and has continued to earn their confidence. Our efforts in transparent communication and robust corporate governance have been recognized by the investment community, earning the accolade Asia’s Best Managed Company in the Real Estate / Property Sector by Euromoney magazine since 2013. Sustainability Governance A Sustainability Steering Committee oversees the Group’s sustainability strategies, which are integrated into our day-to-day operations and risk management. Led by an Executive Director, the committee is comprised of senior managers from key divisions. It monitors sustainability-related matters in operations, reviews stakeholder feedback and updates respective policies. The Group utilizes expertise from different departments to support the steering committee in promoting sustainability. Working groups with diverse specialities and functions have been set up, including an Energy Optimization Committee that monitors energy consumption at our investment properties, and an Occupational Health and Safety Committee that oversees safety practices on construction sites. Community involvement and outreach are managed by the Corporate Communications Department. Please refer to the Corporate Governance section of our 2015/16 annual report for details of our corporate governance structure and practices. Our Approach to Sustainability 7 Sun Hung Kai Properties Limited Sustainability Report 2015/16