Sustainability Reports 2022/23

Environmental Management System and Smart Management We take environmental considerations into account in our operations, and conduct regular internal and external reviews to assess the effectiveness of our management systems. Demonstrating our commitment to responsible business, our property management and construction subsidiaries are audited by internal and external parties annually and certified to international environmental and energy management standards. Corrective actions are in place for continual improvement. We have operating manuals and procedures to communicate on environmental management issues internally. Regular training for employees is also provided. • ~83 % of our managed properties within the reporting scope align with ISO 14001 and ISO 50001 management system standards • 91 buildings and sites hold ISO 14001 certifications and 12 buildings hold ISO 50001 certifications Our property management subsidiaries Hong Yip and Kai Shing received the Hong Kong Green Mark Certification, which is awarded by the Hong Kong Q-Mark Council for recognizing our environmental management system. We invest in smart technologies – such as the Internet of Things (IoT), virtual reality (VR) and artificial intelligence (AI) to optimize data collection, data analysis and operations. This ultimately enhances the efficiency and effectiveness of our environmental management. Sustainability Data Management System Our web-based sustainability data management system has been the foundation of our data collection and monitoring since 2014. Business units submit data that is processed and consolidated, allowing the sustainability team to monitor our sustainability performance across all operations. Through regular reviews and upgrades, we align our efforts with market trends and fulfil the latest disclosure requirements. Smart and Sustainable Development SHKP is committed to promoting sustainability and incorporating green features at every stage of a building’s life cycle, from design and construction to operation. As a property developer, we recognize our role and responsibility for protecting the environment and conserving biodiversity, and make every effort to foster environmental sustainability. Please refer to our Sustainable Building Policy and the Sustainable Building and Environmental Targets sections for more details on our commitment. We carefully manage our impact on the environment and ecosystem. The Group applies a mitigation hierarchy to avoid, minimize, restore and offset any adverse impact on the environment. To understand and minimize our impact, we engage environmental and ecological consultants to study and survey sites before development proposals are submitted and feasibility studies are undertaken. We prioritize those where we will have a lower impact on the environment, biodiversity and the ecosystem. During planning and construction, we work with third-party professionals, seek government approval and work with business partners. We appoint external consultants to conduct environmental and biodiversity assessments, and evaluate the potential impact of construction on local biodiversity and the environment. During the reporting year, we did not identify any significant biodiversity-related risks in our operations. For projects, such as the Wetland Seasons Park, PARK YOHO, Sai Sha and Tung Shing Lei, we conducted biodiversity assessments and developed management plans. For Wetland Seasons Park, we worked closely with external consultants and partners to ensure compliance with both local legislation and the Hong Kong Wetland Park’s requirements regarding noise, sewage, waste and emissions during construction. We engaged an ecology consultant to monitor biodiversity during the wetland restoration and operation at PARK YOHO. For the project at Tung Shing Lei, we enhanced the ecological and aesthetic value of the surrounding habitat by including a building-free area that preserved water birds’ flight lines, a buffer between the development and the adjacent land, and a water feature that serves as a natural habitat. In addition to a biodiversity impact assessment, we funded a three-year ecological study at Tung Shing Lei to explore practical ways to optimize the ecological functions of abandoned fishponds. We hope to contribute to the long-term conservation and management of other abandoned ponds in wetlands, to support biodiversity.  Where feasible, we conserve trees at sites with horticultural maintenance and management plans. In general, the total number of newly planted trees in a project is equal to or more than the number of trees approved to be removed in the Tree Preservation and Removal Proposal agreed with the government. In addition to this general practice, we spared no effort at our St Michel project to conserve the Incense Tree (Aquilaria sinensis) . Categorized as ‘Vulnerable’ in the International Union for Conservation of Nature (IUCN)’s Red List of Threatened Plants, the tree was accommodated in our planning, and integrated into the landscape design. During construction, we treated the tree for fungal infection. During the reporting year, 10-year Targets for 2029/30 (Base Year: 2019/20) Emissions Energy Water Waste Aspect Target Reduce scope 1 and 2 greenhouse gas (GHG) emissions intensity of EOC-monitored buildings 1 by 25 % Reduce the electricity consumption intensity of EOC-monitored buildings 1 by 13 % Reduce the water use intensity of EOC-monitored buildings 1 by 5 % Divert at least 70 % of construction waste per year in Hong Kong construction projects within the reporting scope Progress in 2022/23 ~91.8% diversion rate ~2.8% ~8.9% ~27.1% ISO 50001 ISO 14001 1 SHKP’s major investment properties in Hong Kong, managed by the Energy Optimization Committee. Sun Hung Kai Properties Limited Sustainability Report 2022/23 15 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