Sustainability Reports 2022/23

Strategies and Management SHKP is committed to upholding its Building Homes with Heart philosophy and making Hong Kong a more sustainable city. To that end, our efforts to address global sustainability challenges are aligned with the United Nations’ Sustainable Development Goals. We are dedicated to promoting sustainable practices and minimizing our environmental impact. Our operations comply with international standards and applicable laws and regulations of the Hong Kong Special Administrative Region, including Air Pollution Control, Waste Disposal and Environmental Impact Assessment Ordinances. In recognition of the climate emergency, we have taken major steps to strengthen our climate-change management and disclosures in accordance with the recommendations of the Task Force on Climate- related Financial Disclosures (TCFD). This year, we conducted an in-depth climate risk assessment. By analyzing different scenarios, we identified climate risks, opportunities and potential impacts across our operations. We are now able to better mitigate risks and adapt to climate change. Governance Specialized committees have been established to monitor specific areas of environmental concern. This ensures that our operations align with our sustainability goals and that we conform with the best practices. The Energy Optimization Committee (EOC) consists of 20 experts in building engineering and management, and is chaired by a representative from the Internal Audit Department. The committee oversees the energy, water and greenhouse gas emissions performance of buildings under its purview and identifies areas for improvement. The EOC also encourages the Group to adopt best practices by proposing improvement plans and fostering company-wide communication. Environmental committees at our property management and construction subsidiaries oversee the implementation of relevant policies, targets and strategies. Our Sustainability Steering Committee – which oversees our strategy and risk management – periodically reviews these policies for effectiveness. Please visit our website for the full versions of the policies. Climate Change Policy Environmental Policy Sustainable Building Policy • Details our strategy and efforts regarding climate change mitigation, adaptation and resilience • Reviewed and updated during the reporting year to strengthen our governance and enhance provisions in areas, such as sustainable buildings and operations, energy and water consumption, waste management, biodiversity, climate change, carbon management and engagement with stakeholders • Conveys to stakeholders our commitment to protecting the environment and reducing the environmental impact of our operations • Guides us to develop low-carbon, climate-resilient properties, and to focus on users’ wellness Climate Change Policy, Environmental Policy and Sustainable Building Policy Sustainable Building and Environmental Targets To go beyond compliance alone, we adopt best practices for existing buildings and integrate sustainable features into new developments. Sustainable building and environmental targets are established via a detailed process, including historical data review and peer benchmarking. We seek to progressively improve our sustainability performance. Sustainable Building Targets Achieve Leadership in Energy and Environmental Design (LEED) certification for all new investment properties Obtain LEED Gold or Platinum ratings for core commercial projects under development LEED LEED Sun Hung Kai Properties Limited Sustainability Report 2022/23 14 Our Reporting Approach Message from the Sustainability Steering Committee Our Business Our Approach to Sustainability Value Created for the Environment Value Created for People Value Created for Customers Value Created for Supply Chain Value Created for Community Appendices