Sustainability Report 2021/22

Value Created for the Environment Climate Resilience Strategies Climate change poses immense threats to the world and to business. As one of the industry leaders, we recognize the importance of enhancing climate resilience and establishing mitigating actions. Our strategy has taken reference to the recommendations of the TCFD framework. Governance The Board oversees our climate change management and reviews climate strategy. Climate-related risks and opportunities are reported regularly to the Board by the following committees: • The Sustainability Steering Committee manages and oversees sustainability issues in our daily operations, regularly reviews related policies, including the Climate Change Policy, and monitors the short- and long-term environmental targets • The inter-departmental Crisis Operation Management Committee regularly reviews climate-related risks and our resilience against extreme weather. It is led by two executive directors who deal with critical incidents – such as extreme weather events – at our business units and subsidiaries • The Audit and Risk Management Committee stays abreast of evolving environmental rules and regulations, monitors and reviews transitional risks Strategy We support the HKSAR government’s Climate Action Plan 2050 and the Energy Saving Plan for Hong Kong’s Built Environment 2015-2025+. Supporting the government’s plan for carbon neutrality by 2050, we are studying to develop strategy for a long-term net-zero carbon commitment in the future. We recognize that climate change poses different types of physical and transitional risks, as well as opportunities to our business. The climate-related risks and opportunities are identified: Solar panels were also installed at our construction site in Shap Sze Heung to generate renewable energy. The solar panels were the first renewable-energy system installed at a temporary work site in Hong Kong as part of the CLP’s FiT Scheme. Together with other sustainable initiatives at the site, the project won the Gold Award in the CIC Sustainable Construction Award and Gold Award (Construction Industry) in the HKAEE 2020, reflecting widespread recognition by the industry. With such valuable experience, we have expanded and installed more solar PV systems at our construction sites. To support renewable energy indirectly, Hong Yip has committed to purchasing renewable energy certificate (REC) from CLP for the office for the next 10 years, which is equivalent to an offset of around 240 tonnes in carbon emissions. We will keep checking the market and purchase more RECs where applicable, supporting Hong Kong to move towards carbon neutrality. Solar panels in construction site in Shap Sze Heung 16 Sun Hung Kai Properties Limited • Sustainability Report 2021/22