Sustainability Report 2019/20

* EOC monitored 54 properties in 2014/15, 55 properties from 2015/16 to 2018/19 and 53 properties in 2019/20 Electricity consumption intensities (kWh/m 2 of gross floor area) 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 140 145 150 155 160 165 161.12 157.97 151.28 147.91 143.75 144.65 Enhancing Energy Efficiency and Minimizing Carbon Emissions To expedite the transformation of our businesses to a low-carbon and climate-resilient economy, the Group has taken the impact of climate change into account in the course of developing energy management strategies for our property portfolio. We also support external initiatives, including the Government’s Climate Action Plan 2030+ and the Energy Saving Plan for Hong Kong’s Built Environment 2015~2025+. In 2014/15, we established a Group-wide energy reduction target to reduce electricity consumption intensity by 10% by fiscal year 2019/20. This target was conveyed to all subsidiaries, and respective energy-saving measures were introduced in our residential and commercial buildings, shopping malls and hotels. This year, we have accomplished our five-year target under the continuous guidance of our EOC, and achieved an electricity consumption intensity of 144.65 kWh/m 2 of gross floor area, a reduction of 10.22% since 2014/15. With the intention of replicating such encouraging results, the Group commits to further reducing the electricity consumption intensity of the EOC-managed buildings by 13% by fiscal year 2029/30 compared to 2019/20. We will continue to share best practices on energy management among buildings managed by the Group. TheGroup has adopted a host ofmeasures in achieving energy-consumption reductions and improving energy efficiency in specific buildings. We have carried out retro-commissioning in some of our existing buildings to improve overall energy efficiency, such as replacing and retuning chiller plants, faulty sensors, flow meters and heat exchangers, and introducing LED lightings. Existing systems, such as water pumps and air-conditioning, were adjusted to ensure optimal use of energy. During the reporting year, we also carried out trials in applying nano-coating on glass curtain walls at selected buildings, which helps reduce radiation from outside and thus lowers the electricity consumption from air-conditioning. While plans are being made to extend such measures to other existing buildings, we have introduced eco-efficiency programmes to assist our mall tenants to optimize their energy use through the provision of free energy audits and technical energy saving advice. To remain at the forefront of the market, we actively introduce digital technologies and solutions to promote building sustainability. At our BEAM-certified Sun Hung Kai Centre, for example, we have introduced the IoT network to allow real-time monitoring and analysis on energy consumption patterns for better management, as we have done for our other commercial and residential buildings. We have employed a smart system which automatically selects the most efficient combination of chillers and pumps needed to match a building’s load to optimize the overall operational efficiency and save energy. We have also adopted a protocol to automate the control of power systems of equipment, allowing better communication of data for improved energy efficiency. Electricity Consumption Intensities of Major Buildings Monitored by the EOC, 2014/15-2019/20* By adopting a variety of energy conservation measures, Sun Hung Kai Centre has achieved an aggregate energy reduction of over 46 million kWh and about 37,000 tonnes of carbon emissions have been saved since 2005. Mikiki also achieved a significant 30% reduction in electricity consumption compared with the opening of the mall in 2011. Both properties won the RCx Merit Award in the Energy Saving Championship Scheme organized by the Environment Bureau in recognition of its efforts. The Group has developed a number of plans to promote the use of renewable energy. For example, the installation of solar panels on the roof of Brill Plaza and Sun Hung Kai Centre, which are both in progress, fully demonstrates our support for the use of renewable energy and active participation in the Renewable Energy Feed-in Tariff Scheme. In support of reducing carbon emissions to mitigate climate change, the Group has joined the Carbon Audit • Green Partner and since 2009 has been a signatory of the Carbon Reduction Charter. We have also conducted voluntary carbon audits for most of our properties since 2008. To collectively contribute towards decarbonization in Hong Kong and in response to the Paris Agreement, Hong Yip and Kai Shing signed up to the BEC Low Carbon Charter in 2019. Moving forward, SHKP will work with our Royal brand hotels to commit to the charter before 2025. Value Created for The Environment Sun Hung Kai Properties Limited • Sustainability Report 2019/20 12