Sustainability Report 2018/19

In view of the prevalence of extreme weather conditions, we have conducted an internal review to better understand the readiness and effectiveness of our existing risk assessment framework, as well as overall precautionary measures and emergency responses in case of a crisis. We focus particularly on extreme weather conditions caused by the change of climate, including super typhoons or heavy rainfalls. The study covers all concerned business units of our property business, including construction, property management, property sales, corporate communications, public affairs and internal auditing. SHKP has adopted the recommendations of the study and continues to enhance our relevant systems and practices to improve our precautionary measures in anticipation of such future events. We have also considered appointing an inter- departmental Crisis Operation Management Committee led by an executive director or someone at senior levels to coordinate, respond and manage such events in the most effective way. Ensuring the Sustainability of Our Properties The Group constantly strives to maintain and improve the sustainability of our properties. To achieve this, we optimise resources and cost savings as well as achieve green certifications as often as possible for the buildings that we own and manage. The Group believes that a high-quality workforce can significantly contribute to our sustainability performance and help us respond more effectively to today’s technology advancements. During the reporting year, a total of 52 accredited Hong Kong Building Environmental Assessment Method (BEAM) professionals were employed by the Group. With their contributions, we have been able to develop and manage our projects through green innovation applications in energy efficiency, material use, waste management and other environmental-related issues. As a result, the Group has been awarded 47 BEAM or LEED (Leadership in Energy and Environmental Design) green- building certificates in recognition of our commitment to sustainable construction practices. During the year, Sun Hung Kai Centre achieved an ‘Excellent’ rating in Energy Use under the Selective Scheme of BEAM Plus Existing Buildings V2.0, a fitting tribute to SHKP’s relentless efforts to incorporate green solutions. Our property management business promotes building sustainability via the Internet- of-Things (IoT) network, a smart property management system that monitors indoor environments and operates a facility which automatically reduces power use. The system has now been adopted in a number of our managed properties such as Tsuen Wan Plaza, Ultima and International Commerce Centre. In addition, Hong Yip and Kai Shing introduce building designs with green features wherever feasible. For instance, Aegean Coast, managed by Kai Shing, promotes the use of sustainable solar energy through a solar on-grid system, and helps reduce the energy consumption of air conditioning through the installation of a mist-cooling system, which utilises rainwater to generate mist, cooling the clubhouse’s glass canopy and ultimately lowering indoor temperatures. During the reporting year, we have been honoured and delighted to have won a number of awards in recognition of our sustainable property management practices. Our property management subsidiaries received 14 awards at the 2018 Hong Kong Awards for Environmental Excellence (HKAEE), with Kai Shing’s managed property The Leighton Hill taking the Gold award in the Property Management (Residential) category. Our construction and property management subsidiaries have also earned a total of 283 Wastewi$e Certificates, 265 Energywi$e Certificates, 29 IAQwi$e Certificates and 34 Carbon Reduction Certificates as of 30 June 2019. In addition, PARK YOHO ‘Fairyland’ won the Hong Kong Institute of Planners Award. PARK YOHO represents Hong Kong’s first-of-its-kind, successful integration of wetland conservation and residential development, serving as an industry role model. Value Created for the Environment Sun Hung Kai Properties Limited • Sustainability Report 2018/19 11