Sustainability Report 2020/21

We are delighted to present the Group’s Sustainability Report for the 2020/21 financial year. Amid the impact of COVID-19, the Group continued to show its resilience and ability to overcome environmental and social challenges. Our ongoing sustainability journey is built on a solid foundation of achievements. During the reporting year, we placed increased emphasis on developing, driving and evaluating sustainability strategies. To create increasing value for stakeholders in these times of change, we conducted an in-depth stakeholder engagement exercise, the results of which helped inform and enhance our approach and commitment to sustainability. To support the HKSAR Government’s call for carbon neutrality by 2050, we have increased our effort to accelerate low-carbon transition and to foster sustainable practices. Alongside our existing energy reduction targets, we have launched new sustainability policies and set new targets for greenhouse gas emissions, water use and construction waste diversion. To achieve the emissions reduction target, align with the government’s ambition and improve roadside air quality, we extend our effort and promote a wider use of electric vehicles in the community by installing more charging stations at our new developments, including residential projects and shopping malls. We also explore and apply the use of renewable energy. We plan to install solar panels at our new buildings, where feasible. As one of Hong Kong’s leading property developers, we strike the balance between development and conservation. The large-scale residential project Wetland Seasons Park in Tin Shui Wai, for example, integrates the nearby wetland park’s natural environment with smart, green and healthy elements to promote sustainable living. We focus on buildings that promote environmental and social well-being, and proactively drive the transition to low-carbon. Our achievements and clearly defined strategy demonstrate our progress and commitment, and have duly been recognized. As of the end of the reporting year, we had been awarded more than 90 green-building-related certificates. We also aim to achieve the Leadership in Energy and Environmental Design (LEED) certification for all new investment properties. In particular, the Group targets to obtain LEED Gold or Platinum ratings for its core commercial projects under development. We are pleased to report we are on track to achieve this goal. For our existing building portfolio, we are constantly reviewing to enhance their sustainability performances. In keeping with our Building Homes with Heart spirit, we aim to deliver the finest products and premium services for our customers. Our confidence in product quality has enabled us to offer a first-three-year warranty for new residential developments in Hong Message from the Sustainability Steering Committee Kong since 2013. Our values are also embodied in a range of supportive measures that we offer to customers, residents and tenants, such as improving indoor air quality, food safety and environmental hygiene. Meanwhile, new 5G-based technology is being applied to enhance the experiences of our building users. To keep customers up-to-date with our ongoing enhancements, we actively engage them via online and loyalty platforms including The Point by SHKP, the SHKP Club and Club Royal. We value our employees and pay close attention to their well-being and development. To encourage COVID-19 prevention, our staff are provided with free pre-vaccination medical examinations and vaccination leave. Diverse learning opportunities are offered via online and offline training. And we participated in the HKSAR Government’s Greater Bay Area Youth Employment Scheme, via which university graduates are placed in projects and offices in key Greater Bay Area cities, setting them on the path to successful careers. We are committed to creating a long-term positive value and meeting the changing needs of the communities in which we operate. Amid social distancing, we changed our flagship sports for charity programmes and reading promotion initiatives to virtual formats. One of our reading initiatives – the online Read For More platform – has served more than 546,000 users since 2019, encouraging them to read and learn in an interactive way. Aside from our key property development business, we cater to the needs of the community. A site near Tung Shing Lei, Yuen Long, will offer facilities that cater equally for the young and the elderly. The project promotes the concept of multiple generations living together, which bolsters family ties. Meanwhile, construction of the transitional housing project United Court in Yuen Long is underway. On completion, this will provide 1,800 units for underprivileged families who have long awaited public housing. Our contribution and commitment to sustainability is acknowledged by the investment community. During the reporting year, we remained a constituent member of the Hang Seng Corporate Sustainability Index and the FTSE4Good Global Index series of London. We also obtained an ‘A’ in the latest MSCI ESG Ratings. In these uncertain times, we are privileged to have guidance from our Chairman and the Board of Directors, and immense support from our stakeholders. Together, we will continue to thrive and build a sustainable future. Sustainability Steering Committee November 2021 Message From The Sustainability Steering Committee Sun Hung Kai Properties Limited • Sustainability Report 2020/21 2