Sustainability Report 2021/22

Value Created for the Environment Promoting Sustainable Buildings We strive to enhance sustainability and incorporate green features throughout the life cycle of our buildings, from design and construction to operation. Recognizing our roles and responsibilities, we make efforts to consider biodiversity conservation and environmental protection in our developments. To ensure we meet global standards – as stipulated in our Sustainability Building Policy – we aim to achieve Leadership in Energy and Environmental Design (LEED) certification for all new investment properties. In particular, we target to obtain LEED Gold or Platinum ratings for core commercial projects under development. For more details, please refer to the Sustainable Building Policy on our website. To understand and minimize the potential environmental impact of our projects, we engage environmental and ecological consultants to conduct detailed studies and site surveys before submitting development proposals and proceeding to feasibility studies. We assess sites for biodiversity importance. Sites with less impact on the environment, biodiversity and ecosystem are preferred. We engage third- party professionals, seek approval from government and work with business partners during planning and construction. Notable biodiversity assessments conducted by external consultants and management plans have been developed for sites, including the Wetland Seasons Park project, PARK YOHO project and Sai Sha project. At PARK YOHO, we also engaged an ecology consultant to monitor biodiversity during the wetland restoration and operation. In recognition of our dedication to sustainable practices, Park YOHO received the Best Development and Conservation Award 2021 organized by The Hong Kong Institute of Surveyors. For Wetland Seasons Park, our strict compliance with local legislation and the Hong Kong Wetland Park’s requirements on noise, sewage, waste and emission during construction earned various awards. For more details, please refer to the Wetland Seasons Park Case Study . During the construction and operation, we minimize environmental and ecological impacts with thoughtful designs and strict pollution control. Wherever feasible, we conserve trees at sites with horticultural maintenance programmes and management plans. In general, the total number of newly planted trees in a project is equal or more than the number of trees approved to be removed in the Tree Preservation and Removal Proposal agreed with the government. A high-quality team enhances our sustainability performance. 54 accredited Hong Kong Building Environmental Assessment Method (BEAM) professionals help to ensure our innovation and technological enhancement aligns with market demands. Green and smart technology optimizes our energy efficiency, material use and waste management. We closely monitor environmental issues that might arise during development and operation, and respond to them in a timely fashion. As of June 2022: • 108 green-building-related certificates 2 have been awarded in our 95 projects in Hong Kong. In terms of our reporting scope, around 53% of our managed properties (by total gross floor area) are with green- building-related certificates • Over 95% of our ongoing construction sites (by total gross floor area) were registered with BEAM Plus • 61% (in total attributable gross floor area) of our core completed office buildings 3 in Hong Kong and Shanghai for long-term rental income have attained the LEED Gold or Platinum rating, including pre-certification • 12 of our commercial, industrial and residential buildings were rated ‘Excellent’ in Management in the Selective Scheme of BEAM Plus Existing Buildings V2.0 while 62 achieved ‘Good’ ratings • Our Two IFC and ICC achieved LEED Platinum certification under the v4.1 Operations and Maintenance: Existing Buildings rating system. The former has become the first building in Hong Kong to receive such honour; the latter finished with the highest score under this certification programme • Hong Yip signed a Memorandum of Understanding with the Hong Kong Green Building Council and BEAM Society to demonstrate its commitment to promoting green building • Hong Yip, Kai Shing and Sanfield received nine awards at the 2020 Hong Kong Awards for Environmental Excellence (HKAEE) organized by the Environmental Campaign Committee (ECC), the Environmental Protection Department and other organizations • All the subsidiaries in the reporting scope earned a total 430 Wastewi$e certificates, 401 Energywi$e certificates, 25 IAQwi$e certificates and 16 Carbon Reduction certificates Alongside green building design, we integrate wellness into our building performance. Our ICC was Hong Kong’s first building to earn a WELL Health- Safety Rating for Facility Operations and Management. Our NOVO LAND in Tuen Mun received the WELL Building Standard™ version 2 pre-certification and Fitwel two-star rating, being the first large-scale residential development in Hong Kong certified with both qualifications . We also participated in urban redevelopment projects in the interest of the community. The redevelopment of the former How Ming Street bus depot in Kwun Tong is in progress led by us. The site will be redeveloped into two commercial buildings and a shopping centre, to create synergy which is beneficial to both community and the economy. 2 Green-building-related certificates include the BEAM Plus new and existing building certificates (both comprehensive and selective scheme), LEED or BREEAM certificates received by projects under development and properties owned or managed by SHKP in Hong Kong. 3 Core office buildings are offices with at least 50% ownership by SHKP, and at least 400,000 ft 2 on total GFA basis. 12 Sun Hung Kai Properties Limited • Sustainability Report 2021/22