Sustainability Report 2018/19

Stakeholder Engagement Process SHKP has since 2013 engaged stakeholders annually through extensive surveys and focus groups in order to communicate our sustainability performance to them and to understand their priorities and expectations regarding various sustainability topics. This regular engagement with stakeholders has enabled SHKP to build long-term trust with stakeholders and prepare ourselves for future challenges in the area of sustainability. From this year onwards, we are planning to conduct an extensive stakeholder engagement exercise every three years to review the materiality of our sustainability issues. To achieve this, we will consult with external sustainability experts when necessary to improve overall effectiveness while continuing to invite our stakeholders to provide feedback, which we will acknowledge and address accordingly. We continually engage stakeholders as part of our daily operations via the correspondence methods listed below. Stakeholder group Method of engagement Customers and Tenants (including residents, commercial and industrial building tenants and hotel corporate clients) • Customer satisfaction surveys • SHKP Club • Club Royal • Concierge, retail stores, call centres, customer hotline, online and mobile phone applications • Website and social media Employees • Interviews • Meetings • Intranet • SHKP Quality Academy • Quality-Raising Suggestion Scheme • Work Safety Suggestion Scheme • Employee engagement activities • Ongoing engagement Government and Regulators • Interviews • Meetings • Public consultation Professional Bodies and Academia • Interviews • Industry forums NGO Partners • Interviews • Community programmes run by the SHKP Reading Club, SHKP Vertical Run for Charity and the SHKP Volunteer Team Shareholders and Investors • Investor meetings and conference calls • Overseas roadshows • Investor forums and conferences • Analyst briefings and annual general meetings • Annual and interim reports • Investor Relations page on SHKP’s website Stakeholder group Method of engagement Suppliers • Interviews • Audits and assessments • Ongoing direct engagements Media Partners and Social Media • Press conferences • Meetings • Website and social media Joint-Venture Partners • Real estate industry trade associations and advisory groups Materiality Analysis Methodology We adopt a three-step approach to assess materiality, guided by the AA1000 Stakeholder Engagement Standard and with reference to the principles of inclusivity, materiality, responsiveness and impact of the latest AA1000 AccountAbility Principles. The process of identifying, ranking and validating the materiality of relevant ESG topics to SHKP allows us to identify significant economic, environmental and social topics to manage and disclose. Step 1: Identifying ESG Topics By making reference to the list of ESG topics from previous materiality analyses, we further refine its contents after having considered the feedback from our stakeholders as well as the latest sustainability trends in the industry. ESG topics are categorised into six key themes: • Economic and general • Environment • Workplace practices • Human rights • Society • Product responsibility Step 2: Ranking ESG Topics Stakeholders were engaged through online surveys in 2017/18, from which they ranked the importance of ESG topics to the Group, using a scale of 1 to 6 (with ‘1’ being not important at all and ‘6’ being very important). They were also asked to review the priorities of the material topics arranged during the preceding year and determine whether they should remain the same and if additional topics should be considered. Step 3: Validating the Results The ranked results were validated by qualitative feedback collected from focus groups conducted in 2017/18 and through peer benchmarking. The material matrix of 2018/19 was further updated with input from the external review panel and our senior management. The final results were endorsed by the Sustainability Steering Committee. Sun Hung Kai Properties Limited • Sustainability Report 2018/19 44 Appendix II – Stakeholder Engagement Process and Materiality Analysis Methodology Appendix II – Stakeholder Engagement Process and Materiality Analysis Methodology