Sustainability Report 2019/20

Stakeholder Group Method of Engagement Customers and Tenants (including residents, commercial and industrial building tenants and hotel corporate clients) • Customer satisfaction surveys • SHKP Club • SHKP Malls App and ‘The Point by SHKP’ • 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 Engagement Process SHKP has engaged stakeholders via extensive surveys and focus groups to communicate and gather feedback on our sustainability strategy and performance since 2013. This has allowed SHKP to review the priorities of an array of sustainability topics and enabled us to make informed decisions to prepare for future sustainability challenges. Building on our previous efforts, we decided to invite a more focused group of stakeholders to provide in-depth feedback on an annual basis, and will continue to engage with a more extensive group of stakeholders every three years to maintain an ongoing and consistent communication from 2018/19 onwards. Feedback from our stakeholders will be acknowledged and addressed accordingly. We regularly engage stakeholders through corresponding methods as listed below. 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 identify, prioritize and validate the materiality of relevant ESG topics for management and disclosure. The approach is guided by the AA1000 Stakeholder Engagement Standard and with reference to the principles of inclusivity, materiality, responsiveness and impact of the latest AA1000 Accounting Principles. Step 1: Identifying ESG Topics With reference to previous materiality analyses, we further refine the list of ESG topics based upon the consideration of stakeholders’ feedback and the latest sustainability trends in the industry. ESG topics are categorized into six key themes: • Economic and general • Environment • Workplace practices • Human rights • Society • Product responsibility Step 2: Ranking ESG Topics Extensive group of stakeholders were engaged through online surveys on a regular basis, from which they ranked the relative importance of ESG topics to the Group on 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 material topics of the preceding year, determining whether the topics should remain unchanged and whether additional topics should be considered. Step 3: Validating the Results We collected qualitative feedback from stakeholder review panels and through benchmarking exercises to validate the ranked results. The final materiality analysis results were reviewed and endorsed by the Sustainability Steering Committee. Appendix II – Stakeholder Engagement Process and Materiality Analysis Methodology 45 Appendix II - Stakeholder Engagement Process and Materiality Analysis Methodology Sun Hung Kai Properties Limited • Sustainability Report 2019/20