Sustainability Report 2021/22

Value Created for the Environment Strategies and Management Climate Change Policy, Environmental Policy and Sustainable Building Policy Our commitment to sustainability is enshrined in key policies: • The Climate Change Policy details our strategy and efforts regarding climate change mitigation, adaptation and resilience • The Environmental Policy s ets out our overall approach to areas such as resource use, biodiversity, climate change and carbon management. This conveys to stakeholders our commitment to protecting the environment and reducing the environmental impact of our operations • The Sustainable Building Policy guides us to develop low-carbon, climate-resilient properties, and to focus on users’ wellness These policies are reviewed periodically by our Sustainability Steering Committee. For the full versions, please visit our website . Environmental Management System Environmental considerations are incorporated into our business operations. Our property management and construction subsidiaries conform to international environmental and energy management standards: Approximately 83% of our managed properties in reporting scope conformed to the ISO 14001 and ISO 50001 management systems, in which 91 of our buildings and sites hold ISO 14001 certification while 12 of our buildings hold ISO 50001 certification. Regular internal and external reviews on the system effectiveness ensure ongoing enhancement of our systems. Sustainability Data Management System We have tracked our sustainability performance via the web-based Sustainability Data Management System since 2014. Data is collected across our operations and monitored by the sustainability team regularly. The system is regularly reviewed and upgraded to match market trends and disclosure requirements. In the spirit of our Building Homes with Heart, SHKP strives to make Hong Kong a sustainable city. We align our sustainability efforts with the SDGs. We keep enhancing our sustainability performance and continue to progress towards group-wide environmental targets for sustainability and climate resilience. We keep abreast of international standards and ensure our strategies and initiatives adhere to the relevant environmental laws and regulations of the Hong Kong Special Administrative Region, including Air Pollution Control, Waste Disposal and Environmental Impact Assessment Ordinances. We integrate sustainable building features into our new developments and seek to adopt best practices that improve the sustainability and environmental performance of our existing buildings. Our aim is to go beyond compliance and achieve our long-term goals, with the following 10-year targets by 2029/30 against the base year of 2019/20: Emissions : Reduce scope 1 and 2 greenhouse gas (GHG) emissions intensity of EOC-monitored buildings 1 by 25% Energy : Reduce the electricity consumption intensity of EOC-monitored buildings 1 by 13% Water : Reduce the water use intensity of EOC-monitored buildings 1 by 5% Waste : Achieve an annual diversion rate of at least 70% of construction waste in Hong Kong construction projects within the reporting scope Responding to climate emergency, we have strengthened our climate change management and disclosures with reference to the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). Sustainability Steering Committee oversees our climate change strategy and related risks with regular reviews. An in-depth climate assessment will be conducted in the coming years. Governance Specialized committees monitor specific areas of concern. Our Energy Optimization Committee (EOC) is chaired by a representative from the Internal Audit Department and comprises 24 building-engineering and management specialists. The committee oversees energy, water and GHG emissions performance at the buildings that it monitors. It identifies areas for improvement, provides recommendations, and facilitates group-wide communication and best-practice sharing. Environmental committees in our property management and construction subsidiaries oversee the implementation of relevant policies, targets, strategies and measures. 1 EOC-monitored buildings are SHKP’s major investment properties in Hong Kong managed by the Energy Optimization Committee (EOC). 11 Sun Hung Kai Properties Limited • Sustainability Report 2021/22