Sustainability Report 2018/19

Our Approach to Sustainability Putting into practice the spirit of Building Homes with Heart, the Group prioritises environmental, social and governance (ESG) factors in the course of our decision- making process for our business. Corporate governance strategies and policies are solidly in place and serve as the foundation for our green development, in order to create sustainable value for our stakeholders. The Group is committed to actively engaging our stakeholders in the promotion of communication, transparency and trust within the community while fostering sustainable development opportunities. Corporate Governance Our Board of Directors is responsible for the overall direction of the Group’s operations and business development while monitoring and reviewing corporate governance practices across all SHKP operations. Chaired by Eric Li, the Audit and Risk Management Committee supports the Board in overseeing and reviewing the effectiveness of risk management and internal control systems. Taking into consideration environmental, social and governance-related risks in the process of decision making, the Committee’s other members include Dicky Yip, Donald Leung and Norman Leung. The Committee’s latest terms of reference are available on the websites of both the Group and The Stock Exchange of Hong Kong. SHKP initiates regular communications with stakeholders and provides timely and accurate information to maintain a high level of public transparency. Our efforts in realizing robust corporate governance have been repeatedly recognized throughout the industry in the form a variety of international and regional awards, including the Asian Excellence Award 2019 for Asian Corporate Governance and Asia’s Best Companies 2019 sponsored by FinanceAsia . Please refer to our Corporate Website or Appendix I f or the full list of awards. Further details of our corporate governance structure and practices are listed in the Corporate Governance section of our Annual Report 2018/19. Sustainability Governance Led by an executive director of the Group, the Sustainability Steering Committee comprises members from the Executive Committee and senior managers from key divisions. Ensuring that sustainability strategies and SHKP’s business goals are properly aligned, the Committee supports the Board in the oversight and management of sustainability issues relating to SHKP’s daily operations and risk management practices. The Committee also reviews feedback from stakeholders, updates related policies and reports to the Board on relevant sustainability matters and performance issues for decision making purposes where necessary. Our sustainability work is further supported by specialists from different backgrounds and business functions. Several committees have been formed to strengthen our sustainability performance across a wide spectrum of issues, including but not limited to the Energy Optimization Committee, which monitors energy consumption for our investment properties; the Human Resources Committee, which reinforces and refines our human resources policies; the Occupational Health and Safety Committees, which oversee health and safety matters across all of our construction sites and managed properties; the IT Governance Steering Committee, which manages customer data and information privacy; and the Corporate Social Responsibility Committee, which monitors our community investment projects and partnerships. Our Approach to Sustainability Sun Hung Kai Properties Limited • Sustainability Report 2018/19 5