Sustainability Report 2020/21

Our Approach to Stakeholder Engagement The Group is fully aware of the importance of regular communication with our stakeholders. We believe it is crucial to gain understanding of their priorities and expectations on our sustainability strategy and initiatives. We regularly communicate with our internal and external stakeholders through a range of communication channels and conduct in-depth discussions and surveys to gain a deeper understanding of our stakeholders’ concern and interest in sustainability. Details of our Stakeholder Engagement Process can be found under Appendix II . This year we conducted an extensive stakeholder engagement with over 450 stakeholders participating through online surveys and a focus group discussion from the stakeholder review panel. Eight sustainability professionals from different fields, including employees, tenants, academic and industry associations, business partners, investors and millennials representative, were invited to participate in the discussion to collect feedback on SHKP sustainability strategy and performance, and to provide insights on how emerging sustainability trends and industry-specific issues are associated with SHKP’s business. To ensure fair and open discussion, the two exercises were facilitated by an independent third-party consultant. Valuable insights and expectations on our sustainability strategy and performance were gathered through the two exercises. Materiality Analysis The materiality matrix provides an overview of the relative importance and significance of selected ESG topics to our stakeholders and business. This year, we surveyed over 450 internal and external stakeholders, asking them to rank the importance of the identified ESG topics. A total of 26 topics that are relevant to our business were considered this year, with the topic Compliance being removed from the list this year as compliance issues are considered as the core and permanent feature of governance. Another topic Grievance Mechanism is also removed from the list, as the essence of which has been embedded in other related topics and is no longer being considered as a standalone topic. Meanwhile, Procurement Practices and Occupational Health and Safety have been renamed Supply Chain Management and Well-being, Health and Safety, respectively, to address broader issues related to the supply chain and employees’ mental well-being. Based on the review results, 18 material topics lie within the threshold of a high materiality level for this year. Customer Privacy, Anti-Corruption and Well-being, Health and Safety are the top three material topics. Our Approach To Sustainability Sun Hung Kai Properties Limited • Sustainability Report 2020/21 7