Sustainability Report 2021/22

Our Approach to Sustainability Academia and non-governmental organizations (NGOs) Question: SHKP is one of the biggest property developers with a vast amount of resources. There have been expectations from academia and NGOs that SHKP should shoulder more responsibility in contributing to the community and helping the underprivileged. How can SHKP leverage its expertise and resources to support community development? Answer: Driven by our long-standing belief in Building Homes with Heart, SHKP proactively responds to the community’s needs with our resources and expertise. The Group adopts a three-pronged approach, with one of the directions being ‘providing care for the underprivileged’. Established in 2003, our SHKP Volunteer Team continues to serve the community by participating in a wide range of community services. Through our Neighbourhood Support Programme, we spread festive care and delivered festive gifts to the elderly. Our volunteers leveraged our corporate expertise and offered home inspection services and basic renovations for elderly people, disabled people and underprivileged families. Amid the fifth wave of COVID-19, SHKP continued to offer full support to the government and the community with resources to fight against the pandemic. For example, the Group provided two land reserves to the government to serve as isolation facilities. Shopping malls were turned into vaccination centres to provide outreach vaccination services, etc. We also organized community engagement programmes through the SHKP-Kwoks’ Foundation and the Building Homes with Heart Caring Initiative. To ease the short-term housing shortage in Hong Kong, we partnered with social welfare organizations to develop a large-scale transitional housing project called United Court. Successful applicants started to move in during June 2022. United Court provides 1,800 units which benefit 5,000 underprivileged families. We also offer free fitted co-working space for startups, with the aim of empowering young entrepreneurs and supporting startup community development. For more details, please refer to Value Created for Community section. Customers, tenants, and employees Question: SHKP established a set of environmental targets on GHG emissions, energy, water and waste in 2020/21. To achieve environmental sustainability, SHKP will have to go beyond the targets and further improve its environmental performance with the help of its customers and tenants. SHKP is expected to put more effort into assisting property users to reduce energy and water use as well as waste generation along the value chain. Are there sufficient engagement programmes and/or collaborative environmental initiatives that involve the above parties? Answer: SHKP realizes the importance of communication and collaboration with our stakeholders. We actively communicate with our stakeholders, particularly our customers and tenants, through various channels and strive to keep them up-to-date on our environmental strategies and policies. We promote sustainable living through a variety of community programmes, such as Green Recycling Carnival Day, weekly recycling booths in selected shopping malls and residential properties, and urban farms. Our hotels, shopping malls and residential properties also collaborate with food-and-beverage tenants to deliver food waste to the Organic Resources Recovery Centre for recycling. In addition, we rolled out eco- efficiency programmes to help our tenants optimize their energy use and provided free energy audits and technical advice to enhance efficiency. We fully support government’s pilot scheme by participating in the Municipal Solid Waste Charging Community Involvement Project. We closely work with various NGOs and support their environmental initiatives to create greater synergy for our environmental efforts. For more details, please refer to Value Created for the Environment section. Investors and shareholders Question: The expectation of responsible and transparent supply chain management from stakeholders has risen in recent years. Is there any plan from SHKP to further strengthen its supply chain management by enhancing its transparency and managing sustainability risks along the supply chain? Answer: SHKP understands the growing expectation and demand for responsible and transparent supply chain management. Therefore, we are working progressively to promote sustainability in our value chain and strengthen our supply chain management. We have established a comprehensive supply chain management mechanism by adopting a vertically integrated approach, which evaluates the compliance status and sustainability performance covering selection of suppliers, retainment and regular assessment. We conduct supply chain risk assessments and strive to minimize potential environmental and social risks across the supply chain through tendering requirements, training and auditing. This year, Sanfield has refined the Sustainable Supply Chain Management Guideline. We summarize and analyze all awarded contracts annually to identify our critical suppliers. With such practice, we can enhance transparency by disclosing the number of critical suppliers and their risk levels starting this reporting year. For more details, please refer to Value Created for Supply Chain section. Connecting with our Stakeholders By engaging with stakeholders through various communication channels and stakeholder engagement initiatives, the Group collected insightful feedback and deepened our understanding of their concerns and expectations on our sustainability performance. Below are our responses to three key issues raised by our stakeholders this year: Sun Hung Kai Properties Limited • Sustainability Report 2021/22 9