Sustainability Report 2021/22

We are pleased to present Sun Hung Kai Properties’ Sustainability Report 2021/22, showcasing our progress in sustainability during the reporting year. 2021/22 was a challenging yet remarkable year as we fought the fifth wave of COVID-19 with great resilience and perseverance. This year also marked the second year of our new sustainability journey during which we continued to refine our sustainability strategies and performance with stakeholder feedback and incorporate more new practices into our business operations. The Group pledges full support for Hong Kong’s and the mainland’s goal of carbon neutrality by 2050 and 2060, respectively. Combating climate change remains the top priority of our sustainability drive. To support HKSAR Government’s Climate Action Plan 2050, we participated in the Carbon Neutrality Partnership to pursue a green economy. We are enhancing our climate change management through progressive disclosure with reference to the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) starting this reporting year. We accelerate our transition to a sustainable and low-carbon operation through a multi-pronged approach. Progress was on track with our new 10-year targets against key environmental goals established last year. Through installing solar panels among managed properties and construction sites, the Group is set to become one of the largest solar-panel operators in the city. Smart digital technology is deployed to optimize our energy management at managed properties wherever possible. We actively promote green transportation through providing more charging facilities for electric vehicles at our managed properties and carparks. We remain committed to developing green properties which are beneficial to users and the environment. All new core commercial projects developed by the Group aim to achieve the Leadership in Energy and Environmental Design (LEED) Gold or Platinum certification. As of June 2022, we have earned 108 green- building-related certificates in Hong Kong. Adhering to Building Homes with Heart, we deliver premium services to our customers. Our confidence in products is reflected by a three-year warranty for new residential developments in Hong Kong. We offer attentive services to our customers, tenants and residents, and continuously upgrade our services with innovative technology and 5G applications. Our online and loyalty platforms – including The Point by SHKP and the SHKP Club – bolster effective communication and close relationships with customers. This year, our Royal brand hotels launched Go Royal, a new mobile-based customer loyalty programme fully integrated with The Point to form the largest hotel and shopping loyalty platform in Hong Kong. Message from the Sustainability Steering Committee Our employees play a huge role in our success story. We nurture a people- oriented culture and strive to create an inclusive workplace, promote employees’ well-being and facilitate their all-round development. Quality training programmes with additional focus on ESG-related topics are provided to strengthen employee’s understanding and best practices. Our sustainability efforts extend to our value chain. We are committed to building a transparent and sustainable supply chain while maintaining mutually beneficial relationships with business partners. This year, we refined the Sustainable Supply Chain Management Guideline, enabling our construction arm to strengthen supplier management. We continued to integrate innovation into our construction process, becoming the first property developer in Hong Kong to adopt the rotational bridge launching method, for a pedestrian and vehicular bridge construction project in Yuen Long. The Group contributed substantially to combat the fifth wave of COVID-19. We lent sites for two major community isolation facilities, including the largest facility at Tam Mi, Yuen Long; provided two commercial spaces for community vaccination centres; offered hotel rooms for isolation facilities and distributed caring kits to people in need. Our initiated transitional housing project, United Court, was officially launched for use in June as Hong Kong’s largest project of such in full operation, providing 1,800 units for families awaiting public housing. We capture opportunities in green and sustainable finance. During the reporting year, we signed two sustainability-linked loan facilities successively as the largest of their kind for the Hong Kong real estate sector at the time. The two loans demonstrated the trust and support from the banking industry for our work on ESG and commitment to sustainability. Our sustainability efforts and achievements continued to receive due recognition in the business community. We remained a constituent member of the Hang Seng Corporate Sustainability Index Series and the FTSE4Good Index series of London, and continued to receive a rating of ‘A’ in the latest MSCI ESG Ratings assessment. The year 2022 marks a key milestone as Hong Kong celebrates its 25th anniversary of returning to the motherland as well as the Group’s 50th anniversary of public listing in Hong Kong. We would like to thank our Chairman and the Board of Directors for their leadership, as well as our stakeholders for their continuous support. Looking ahead, we will remain steadfast in our sustainability strategies and contribute to Hong Kong’s sustainable future. Sustainability Steering Committee October 2022 Sun Hung Kai Properties Limited • Sustainability Report 2021/22 2 Message from the Sustainability Steering Committee