Sustainability Report 2020/21

To promote renewable energy and reduce carbon emission, Hong Yip launched the Solar PV Panel Energy Saving Scheme during the reporting year. More than 7,700 solar panels will be installed on the rooftops of over 14 managed buildings; a project expected to be completed by mid-2022. An estimated 14.4 million MJ of renewable energy will be generated management of climate-related risks and opportunities. An inter-departmental Crisis Operation Management Committee – led by an executive director – deals with critical incidents at our business units and subsidiaries, including extreme weather events. This Committee regularly reviews climate risks and discusses to enhance the Group’s resilience against extreme weather. Meanwhile, the Audit and Risk Management Committee monitors and reviews the risks associated with the transition to low- carbon, and stays abreast of evolving environmental rules and regulations. The climate-related risks and opportunities identified for the Group are: Risks Acute physical risks, such as super typhoons or other extreme weather events Possible impacts: damage to building structures and electricity shortages may occur with more frequency. Businesses may be disrupted, leading to loss of revenue. Chronic physical risks, such as changes in rainfall patterns Possible impacts: heavy rains may lead to flooding, which may damage structures and facilities. This will impair value and increase maintenance costs. Transitional risks, such as policies and legal requirements Possible impacts: stringent climate change policies and regulations – both existing and emerging – are expected to increase operating costs. Opportunities Sustainable building Possible impacts: Guided by increasing market demand, we will need to incorporate more climate-resilient elements into our new developments, and continually enhance the environmental performance of existing buildings. Ultimately, this may lower operating and maintenance costs. annually – equivalent to the annual consumption of 1,000 households in Hong Kong. Other managed residential, commercial and industrial buildings are also equipped with solar panels. Brill Plaza joined CLP’s Renewable Energy Feed-in Tariff (FiT) scheme last year and achieved zero tariffs for months. It has become one of the scheme’s largest-scale of ultra-low emission industrial and commercial buildings in the district. Kai Shing installed solar panels at 12 buildings, including Tai Po Mega Mall and ICC during the year. At our construction sites in Shap Sze Heung, solar panels were installed to generate renewable energy for on-site offices. The solar panels were the first renewable energy system installed at a temporary site in Hong Kong to sell power as part of the CLP FiT Scheme. The use of solar panels helps to reduce GHG emissions and helps us build a greener community across our operations. Climate Resilience Strategies To address the opportunities and risks of climate change, we have developed strategies to strengthen our governance, enhance our climate-risk management and improve our performance. During the reporting year, we formulated a new Climate Change Policy to enhance our resilience and adaptability. We have also set a target to reduce the scope 1 and 2 GHG emissions intensity by 2029/30, against 2019/20 as the base year, in order to mitigate our impact on climate change. The Group has incorporated physical and transitional risks relating to climate change risks in our risk assessments and strategies. We reference the Financial Stability Board’s Task Force on Climate-Related Financial Disclosures (TCFD) framework in the • Solar panels installed on the rooftops of buildings An internal review in 2018/19 evaluated our risk assessment framework, precautionary measures and emergency responses, particularly regarding extreme weather such as super typhoons and heavy rainfall. With extreme weather occurring more frequently, we have stepped up efforts to incorporate climate-resilient elements in our buildings. For instance, a comprehensive system defends against extreme conditions such as typhoons. The system identifies contingencies at the affected building and recommends actions as the weather approaches. Floodgates are installed in properties in low-lying areas and areas prone to flooding, including main entrances and carpark entrances. Remotely monitored sensors at critical locations – such as mains switch rooms – alert staff to flooding. We have also procured submersible pumps for some of our shopping malls. Value Created for The Environment Sun Hung Kai Properties Limited • Sustainability Report 2020/21 17