Sustainability Report 2019/20

Our Approach To Sustainability Underpinned by the belief in Building Homes with Heart, the Group ensures that environmental, social and governance (ESG) factors are considered in decision-making processes across our operations and business. Our corporate governance strategies and underlying policies lay the foundation for our sustainable development strategy and our creation of shared values for our stakeholders. Beyond seizing opportunities in sustainability, we maintain an active and ongoing dialogue with our stakeholders to promote communication, build trust and enhance transparency within the community. Corporate Governance Our Board of Directors directs the Group-wide strategy and development, including our sustainability strategy. The Board is held accountable for monitoring and reviewing corporate governance practices across all business operations to maintain high standards and ensure compliance. The Audit and Risk Management Committee supports the Board in reviewing and maintaining effective risk management and internal control systems. It also evaluates and monitors environmental, social and governance related risks and ensures these risks are thoroughly considered in the process of decision making. The Committee is chaired by Eric Li with Committee members Dicky Yip, Donald Leung and Norman Leung. The Committee’s latest terms of reference are readily available on the Group’s websites and The Stock Exchange of Hong Kong. The Group strives to achieve a high level of public transparency by regularly engaging stakeholders and disclosing information in a timely and accurate manner. We have won acclaim for our efforts in maintaining rigorous standards of corporate governance in a number of international and regional awards, including the Asian Excellence Award 2020 for Asian Corporate Governance and Asia’s Overall Best Managed Companies 2020 sponsored by FinanceAsia . Please refer to our Corporate Website or Appendix I o f this report for the full list of awards. Further details of our corporate governance structure and practices are provided in the Corporate Governance section of our Annual Report 2019/20. Sustainability Governance The Sustainability Steering Committee is chaired by an executive director of the Group and composed of members from the Executive Committee and senior managers of key divisions. The Committee meets regularly to support the Board in ensuring proper alignment of sustainability strategies and SHKP’s business goals and practices. To achieve this, the Committee oversees and manages sustainability issues in the Group’s daily operations, reviews feedback from stakeholders and updates related policies. The Committee is also responsible for reviewing the Group’s sustainability risk, performance and targets, and reporting relevant sustainability matters and performance issues to the Board for decision making purposes on a regular basis. Specialists of different backgrounds and business functions are involved to support our sustainability work through different committees. These committees include the Energy Optimization Committee to monitor energy consumption of our investment properties; the Human Resources Committee to reinforce and refine our human resources policies; the Occupational Health and Safety Committees to oversee health and safety matters across all of our construction sites and managed properties; the IT Governance Steering Committee to manage customer data and information privacy; and the Corporate Social Responsibility Committee to monitor our community investment projects and partnerships. Our Sustainability Strategy To deliver our commitment to creating value for stakeholders in a more systematic and consolidated manner, SHKP’s sustainability strategy is built on five priority pillars: The Environment, People, Customers, Supply Chain and Community. We support the United Nations’ Sustainable Development Goals (SDGs) through pursuing our sustainability strategy to join the universal call by the United Nations Member States to end poverty, protect the planet and ensure that everyone enjoys peace and prosperity by 2030. We have shortlisted eight out of 17 SDGs which we believe are the most relevant to our business profile. The relevancy of the eight SDGs to the five priorities of our sustainability strategy is mapped and presented below. Our contributions to the global goals are presented in corresponding chapters in this report, and we will continue to communicate with our stakeholders to explore and seize opportunities to enhance sustainability approaches and practices. Our Approach To Sustainability Sun Hung Kai Properties Limited • Sustainability Report 2019/20 5