Sustainability Report 2019/20

We are pleased to present our Sustainability Report to share the progress we made in sustainability during the 2019/20 financial year. Due to local social incidents and the COVID-19 pandemic, the year under review has definitely been one of the most challenging both for our Group and for the community as a whole. While the Group’s different businesses were inevitably affected to varying degrees, we demonstrated resilience tomeet the challenges, ensuring business continuity and serving the interests of our stakeholders. The Group had weathered many ups and downs with Hong Kong during the past nearly five decades that not only helped build our strong foundation and premium brand, but also guided our management in responding effectively to the current challenges. Adhering to our core belief in Building Homes with Heart, the Group remains committed to investing in Hong Kong by developing premium quality premises, delivering top-notch customer services and creating sustainable value for customers, tenants, residents, employees and the community. We strive to continuously strengthen environmental, social and economic resilience to pursue long-term growth and contribute towards the broader United Nation’s Sustainable Development Goals. In addition, the Group has conducted a special review to strengthen our ESG performance and commitments going forward. Despite external pressures, the Group has upheld its commitment to delivering quality products and services. Since 2013, we have offered a pioneering three-year warranty for homebuyers on new residential units in Hong Kong. We maintain effective two- way communication with customers through our loyalty programme, the SHKP Club, while providing professional and caring services through the dedicated efforts of our property management teams. By constantly innovating, we upgraded our integrated mall loyalty platform, ‘The Point by SHKP’, during the year with enriched offerings and smart functionalities to elevate customer experience. The Group has focused on developing its green property portfolio to prepare for future environmental challenges, including climate change. To date, the Group has been awarded 49 green building certificates in our Hong Kong portfolio. Our Group headquarters, Sun Hung Kai Centre, in particular, obtained the ‘Excellent’ rating in Management under the Selective Scheme of BEAM Plus Existing Buildings V2.0 during the reporting year in addition to the previous ‘Excellent’ rating in Energy Use. Following an internal review on climate change impacts conducted last year, we have refined our climate strategies and introduced climate- resilient elements in buildings to better cope with climate change challenges. While we are pleased to announce the accomplishment of our Group-wide energy reduction target during the year, we have also set a new 10-year target and aspire to achieve even better results. To ameliorate impacts of the COVID-19 pandemic, we have stepped up efforts to ensure meticulous care for customers, tenants, employees and the community as a whole. In particular, we have set up a special taskforce led by management to ensure that we can respond swiftly and systematically to issues affecting our business. At our shopping Message from the Sustainability Steering Committee malls, the sector that has been hardest hit during the year, we implemented a wide range of supportive measures, including granting rent concessions to affected tenants, improving our cleaning measures and upgrading our technologies to raise hygiene standards and indoor air quality, and above all, proactively enhancing online and offline sales promotions to drive retail consumption, especially for catering outlets. To ensure employees’ health and safety, we provided timely free virus tests and anti-pandemic supplies, as well as strengthening measures at the workplace, including the introduction of flexible work schedules. We also sought to help frontline medical service providers, the elderly and other disadvantaged groups through the donation of surgical masks and related anti-pandemic supplies to the Hospital Authority and NGOs. We continued to capitalize on our talent pool, motivate our workforce and maintain a high-calibre team for maximized quality and efficiency. In practicing social distancing, we enhanced online staff training by launching a new Technology Upskilling Portal and upgrading the self-learning platform. We leveraged new technologies for driving sustainable practices at the workplace and introduced SmartWorks at one of our work sites to foster workers’ safety and improve overall site-management efficiency. Efforts were made to maintain the work-life balance of our employees, develop their personal and career growth, and ensure their physical and mental well-being. Guided by the spirit of Building Homes with Heart, the Group places great emphasis on caring for the underprivileged and promoting reading and sports for charity in the community. During the year, we collaborated with the Hong Kong Sheng Kung Hui Welfare Council and launched a distinctive transitional social housing project, called United Court, with the aim of easing local housing shortage for underprivileged families. We also enhanced the SHKP Reading Club’s online platform, ‘Read For More’, by introducing more diverse content and enhancing promotion of online reading campaigns among the youth, which was particularly essential during school suspensions. Despite the cancellation of the Group’s charitable sporting events due to social incidents last year, we continued to make donations to support beneficiary charities’ for child and youth programmes. Reaffirming our commitment to sustainability over the years, the Group has remained a constituent member of the Hang Seng Corporate Sustainability Index and the FTSE4Good Global Index series of London. We also ranked sixth and fourth in the Hong Kong Business Sustainability Index and the Greater Bay Area Business Sustainability Index, respectively. We would like to take this opportunity to express our sincere gratitude to our Chairman and the Board of Directors for their continued guidance and our stakeholders for their immense support in a period of challenges and uncertainties. Building on our solid foundation, we will continue to work together with our stakeholders to thrive and steer towards a truly sustainable future. Sustainability Steering Committee November 2020 Message From The Sustainability Steering Committee Sun Hung Kai Properties Limited • Sustainability Report 2019/20 2