Sustainability Report 2021/22

Sun Hung Kai Properties Limited • Sustainability Report 2021/22 57 Appendix II Stakeholder groups Key methods of engagement Customers and Tenants (including residents, commercial and industrial building tenants and hotel corporate clients) • Apps from property management • Club Royal • Concierge, retail stores, call centres, customer hotline, online and mobile phone applications • Customer satisfaction surveys • E-mail • Go Royal • SHKP Club • The Point by SHKP • Website and social media Employees • Employee engagement activities • Interviews • Intranet • Meetings • Performance review • Quality Raising Suggestion Scheme • SHKP Quality Academy • Staff surveys • Training • Work Safety Suggestion Scheme Government and Regulators • Interviews • Meetings • Public consultation NGO Partners • Community programmes run by the SHKP Reading Club, SHKP Vertical Run for Charity and the SHKP Volunteer Team • Interviews Professional Bodies and Academia • Industry forums • Interviews Shareholders and Investors • Analyst briefings and annual general meetings • Annual and interim reports • Investor forums and conferences Appendix II — Stakeholder Engagement Process and Materiality Analysis Methodology Stakeholder Engagement Process We recognize that engaging stakeholders is of crucial importance in understanding their needs, which leads to how we perform our current practices and prepare for the future. Since 2013, SHKP has been conducting formal stakeholder engagement exercises to obtain feedback on our sustainability strategy and performance annually through focus groups and/or surveys and interviews. A three-year stakeholder engagement approach was adopted in 2018/19. We invite a group of stakeholders for in-depth discussions on an annual basis, and this is supplemented by a survey every three years for effective stakeholder engagement and opinion collection. Sustainability professionals and representatives from different stakeholder groups have been invited to form our stakeholder review panel to allow us to be kept informed of their expectations, needs, concerns, and to understand our potential and actual impacts on them economically, environmentally and socially. Through dialogues with stakeholders, we work to proactively and effectively mitigate negative and maximize positive impacts. The feedback also allows us to review the priorities of sustainability topics and provide guidance to make informed decisions and actions to respond to future sustainability challenges. Stakeholder engagement has been embedded in our daily operations. We engage with our stakeholder groups through various approaches, from casual day-to-day interactions and meetings to formal surveys, to ensure their expectations are effectively met. Materiality Analysis Methodology We adopt a three-step approach to identify, prioritize and validate the materiality of relevant ESG topics for management and disclosure. We have engaged an independent consultant to conduct a stakeholder engagement exercise to identify material economic, environmental and social impacts along our value chain and to align this Report with the Group’s strategies and stakeholders’ expectations. Guided by the AA1000 Stakeholder Engagement Standard, we invited stakeholders to rank the importance of sustainability issues and provide comments on the Group’s sustainability. This allows us to identify issues that are material to the Group’s sustainable development and prioritize the topics covered in this Report, according to the principles of stakeholder inclusivity, materiality, responsiveness and impact, as defined in the latest AA1000 AccountAbility Principles and GRI Sustainability Report Standards. Step 1: Identifying ESG Topics With reference to previous materiality analysis, the independent consultant identified a broad range of sustainability issues related to the Group’s economic, environmental and social impacts and performance based upon the consideration of stakeholders’ feedback, the latest sustainability and industry trends and peer benchmarking. ESG topics are categorized into six key themes: • Economic and general • Environment • Human rights • Product responsibility • Society • Workplace practices Step 2: Ranking ESG Topics We engaged our stakeholders including employees, customers, NGO, partners, investors, academia, suppliers, industry peers and media partners via online surveys on a regular basis, from which they ranked the relative importance of ESG topics to the Group on a scale of 1 to 6 (with ‘1’ being not important at all and ‘6’ being very important). Moreover, stakeholders were asked to review preceding years’ identification of material topics and whether the topics should remain unchanged or additional topics should be considered. The ESG topics were plotted in a matrix with their positive relative to the degree of importance to stakeholders and significance of the impact to the Group’s business as a result of how it addresses or performs for each of the ESG topics. Step 3: Validating the Results Qualitative feedback from stakeholder review panel, which consist of representatives of different stakeholder groups, including employees, contractors, tenants, youth representatives, investors, academia and industry experts, were collected to validate the ranked results. After analyzing stakeholder input, with the assistance of independent consultants, the Sustainability Steering Committee reviewed and approved the scope, topic boundaries and completeness of the prioritized material topics. Shareholders and Investors • Investor meetings and conference calls • Investor Relations page on SHKP’s website • Overseas roadshows Suppliers • Audits and assessments • Interviews • Meetings • Ongoing direct engagements • Online tendering system • Sanfield vendor portal e-platform • Supplier assessment Media Partners and Social Media • Meetings • Press conferences • Website and social media Joint-Venture Partners • Real estate industry trade associations and advisory groups