Sustainability Reports 2022/23

Sustainable Finance As part of our decarbonization strategies, we strive to expand our green finance profile where applicable and integrate sustainability performance targets into financing mechanisms. The Group signed two sustainability-linked loans (SLL) with leading international and local banks and received an overwhelming response with oversubscriptions. The two SLLs broke the records for the Hong Kong real estate sector at the respective time, with a total worth of around HK$29.4 billion. SHKP needs to achieve a set of predetermined sustainability performance goals according to the loan agreement, including: Materiality Analysis The materiality matrix illustrates the relative importance and significance of selected ESG topics in relation to our stakeholders and business. We review our materiality analysis annually based on the results of our stakeholder engagement exercise. In 2020/21, over 450 internal and external stakeholders were invited to rank the importance of the ESG topics. During the materiality analysis process, 26 ESG topics relevant to our business were considered. The 26 ESG topics in 2021/22 remain relevant to our business in 2022/23. Based on the findings from last year, we modified our materiality matrix based on the top management and stakeholders’ feedback. In 2022/23, the significance to business of ‘Materials’ is moved higher and it is included as a new material topic. 21 material topics fell within the threshold of a ‘high’ materiality level. Customer Privacy, Anti-Corruption, and Well-being, Health and Safety continued to be the top three material topics in terms of their importance to stakeholders and significance to the business. The assessment result as shown in this report was approved and signed off by the management. Materiality Matrix Economic and General Environment Workplace Practices Human Rights Society Product Responsibility Significance to Business Importance to Stakeholders Low High High Sustainability benchmarks and indices improvement Green building certifications attainment Electricity consumption intensity reduction The proceeds will be used to support ongoing sustainability initiatives or as general working capital. To build long-term value for our stakeholders, we will continue to explore the future possibilities of sustainable finance. Our Approach to Stakeholder Engagement The Group recognizes the importance of regular communication with stakeholders, so that we can understand and respond to their expectations and priorities on sustainability strategies. This year, we formulated a new Stakeholder Engagement Policy to guide our stakeholder engagement efforts and promote effective communication with stakeholders. We regularly engage our internal and external stakeholders through various communication channels and facilitate in-depth discussions with them to understand their concerns and interests. We also seek their feedback and recommendations on the design, review and operation of our communication channels and grievance mechanisms. For details about the Stakeholder Engagement Process, please refer to Appendix II . The Group adopts a three-year approach to engage with various stakeholder groups to review material ESG topics. This year, we invited eight sustainability professionals from diverse backgrounds, including employees, tenants, contractors, investors, millennials, representatives from leading corporates in sustainability, academia and industry associations, to participate in a stakeholder review panel discussion. The stakeholders provided insightful feedback that can strengthen SHKP’s sustainability strategies, policies and practices through which their thoughts on key sustainability trends, including climate change and scope 3 emissions, have been shared. An independent third-party consultant was commissioned to moderate the panel discussion to ensure a fair and open conversation. Our Approach to Sustainability High priority Low priority 22 20 21 18 17 19 9 5 7 6 11 10 8 25 26 23 24 16 12 15 14 13 3 1 2 4 Sun Hung Kai Properties Limited Sustainability Report 2022/23 Our Reporting Approach Message from the Sustainability Steering Committee Our Business 10 Value Created for the Environment Value Created for People Value Created for Customers Value Created for Supply Chain Value Created for Community Appendices