Sustainability Report 2018/19

Message from the Sustainability Steering Committee We are delighted to present our Sustainability Report for the 2018/19 financial year. The Group is dedicated to creating the best value over time for all of our stakeholders, including shareholders, business partners, investors, employees and the community, through making considerable efforts to promote sustainable development. Recognizing the contributions that businesses can make to a better society, we support the United Nations’ Sustainable Development Goals (SDGs) as a universal call to action. During the 2017/18 financial year, we began evaluating our sustainability strategy against the benchmarks of the SDGs. This year, we further mapped out our respective SDGs and examined how these key sustainability drivers underpin our business operations. The insights gained in the exercise have helped enhance our approach to be better aligned with, and contribute to, the United Nations’ SDGs. We work every day to contribute to making Hong Kong a sustainable city and enhancing the lives of people, through strengthening our commitment to sustainable building designs. During the year, the Group’s headquarters, Sun Hung Kai Centre despite being 37 years old, achieved an ‘Excellent’ rating in Energy Use under the Selective Scheme – BEAM Plus Existing Buildings V2.0. This is a fitting tribute to our relentless efforts to adopt the latest green design practices and meet the related standards in our different developments. As part of our responsibility to mitigate the effects that extreme weather conditions may have on our businesses and the community, the Group conducted an internal review to evaluate our readiness and the effectiveness of our systems and practices to handle emergencies resulting from climate change. Building Homes with Heart is the Group’s longstanding philosophy that guides our commitment to quality in providing premium products and services to our customers while supporting the SDGs. Putting this belief into practice, we have offered a three- year warranty for homebuyers of new residential units since 2013, which was the first of its kind in the industry. The SHKP Club, the largest developer loyalty programme of its kind in Hong Kong, remains an effective channel for two-way communication between the Group and our customers, helping shape our strategies for long-term business and for our contribution to the community. We continue to establish industry benchmarks by introducing innovative technologies and cutting-edge ideas in our developments and management to better serve our customers and offer attentive services. The Group firmly believes that our involvement in the community has grown in lockstep with the spirit of Building Homes with Heart. We support the SDGs through initiatives that promote sports for charity, together with education and a reading culture. To this end, the Group staged the fourth Sun Hung Kai Properties Hong Kong Cyclothon, as well as the seventh SHKP Vertical Run for Charity – Race to Hong Kong ICC. During the year, the Group also sponsored and established the SHKP Cycling Academy with the Cycling Association of Hong Kong, China, to promote cycling training among secondary school students. Additionally, the Group launched the revamped online reading platform – ‘Read for More’ – to nurture good reading habits, particularly among teenagers and fresh graduates. To support the well-being of our employees and value-chain partners, as stated in the SDGs, the Group has worked seamlessly to promote health and safety throughout the years. For example, during the year, we jointly developed a ‘tower crane anti-collision system,’ which has since been widely adopted to enhance safety on construction sites. We also initiated the installation of ‘mobile resting stations’ which provide shelter for construction workers to reduce the risk of heat stress while working in hot weather, and serve as a social gathering place to help promote a harmonious working culture. Thanks to all our efforts over the past years, the Group was named one of the top three performers among all industries in the Hang Seng Corporate Sustainability Index, with an ‘AAA’ rating. We have also remained a constituent member of the FTSE4Good Global Index series of London. Manifesting its leading industry position, the Group has been recognized as one of the top 10 developers in Hong Kong at the BCI Asia Awards for nine straight years. Without the keen insights and full support of our Chairman and the Board of Directors, we could not have attained such achievements. We wish to take this opportunity to express our sincere appreciation and gratitude to all of them and reaffirm our unwavering commitment to sustainable development. Going forward, we will continue to work in collaboration with all stakeholders to strive to build better homes for everyone in Hong Kong and pursue the SDGs as a universal call to action. Sustainability Steering Committee December 2019 Message from the Sustainability Steering Committee Sun Hung Kai Properties Limited • Sustainability Report 2018/19 2