Sustainability Reports 2022/23

Our Approach to Sustainability ESG Risk Management The Group has integrated ESG risks into its risk management to build resilience to ESG risks through sustainability strategies. Below illustrates some of the key ESG risks and our response to such risks. ESG Risk Factor Potential Impact Example of Our Response Climate Change • Extreme weather causes operational disruptions, leading to higher maintenance costs and loss of revenue • Strict global and local policies and regulations are expected to increase operating costs • Incorporate climate-resilient building features and formulate adaptation plans to address physical risks • Formulate decarbonization strategies to transit to low-carbon operations • Disclose climate management in accordance with the TCFD recommendations Ethics and Integrity • Integrity breaches and money laundering cause negative impact on reputation and lead to fines and penalties • Cyber-attacks and data breaches cause financial impact in the form of fines or compensation • Abide by the regulation in the jurisdictions where we operate, and the standards stipulated in the Code of Conduct and Supplier Code of Conduct • Provide training on ethical standards and anti-corruption practices • Formulate Cybersecurity Policy, conduct assessment and provide cybersecurity training Environmental Compliance • Non-compliance results in fines and penalties, and reputational damage. Litigation risk may also arise in case of controversies • More stringent environmental regulations may affect business operations and accrue additional costs • Update environmental policies to meet the latest standards and regulations • Implement ISO 14001 Environmental Management Systems and perform environmental audits Health and Safety • Occurrence of work-related injuries or fatalities due to poor health and safety management • Injured employees and workers cause delays in project delivery and negative impact on reputation • Implement ISO 45001 Occupational Health and Safety Management Systems • Oversee health and safety initiatives, targets and performance • Identify, assess and manage the health and safety risks in the supply chain Supply Chain • Supply chain disruptions due to social or environmental factors cause unstable supply and rising prices of raw materials and services • Supply chain risks cause controversies and reputational damage • Use multiple sourcing strategies to avoid overreliance on any single source • Conduct inspections and assess the sustainability performance of suppliers For other risk factors, please refer to the Corporate Governance Report section of our Annual Report 2022/23. Sun Hung Kai Properties Limited Sustainability Report 2022/23 Our Reporting Approach Message from the Sustainability Steering Committee Our Business 09 Value Created for the Environment Value Created for People Value Created for Customers Value Created for Supply Chain Value Created for Community Appendices