Sustainability Reports 2022/23

Scope 1 and 2 GHG emissions intensities (tonnes CO 2 e/m 2 of total gross floor area) 0.10 0.08 0.06 0.04 0.02 We work with universities and scientific research institutions to develop innovative green building technologies. With The Hong Kong Polytechnic University (PolyU), we sponsored research into green applications, green materials and green construction processes, and piloted a smart energy management system at the High Speed Rail West Kowloon Terminus Development project. Going forward, we will use AI, IoT and digital twins to develop energy-saving systems, and optimize carbon activation to produce more environmentally-friendly concrete. This will save energy and reduce embodied carbon. We also plan to build the first blockchain platform that records BIM for our projects, thus contributing to smart building development. Our property management subsidiaries work with universities and technology companies to develop innovative solutions. Hong Yip worked with Hong Kong Metropolitan University to develop an IoT solution for preventive maintenance and environmental monitoring of water pumps, enabling the early detection of issues and risks. This enhances operational efficiency and the lifespan of the equipment. Kai Shing collaborated with technology start-ups to develop a digital twin project for optimizing ICC’s building performance and efficiency. This won the BIM projects category at the Celebration of BIM Achievement 2022, co-hosted by the Development Bureau and the Construction Industry Council. In June 2023, Kai Shing announced a collaboration with PolyU, CLPe Solutions, Jardine Engineering Corporation Limited and Trane Service Hong Kong to formulate a charter on Smart Energy Optimization and AI Control. The charter covers eight of Kai Shing’s managed properties, including ICC, New Town Plaza and Kowloon Commerce Centre. By promoting the use of AI controls in air-conditioning systems, the charter aims to save three million kWh of electricity from July 2023 to June 2025. Decarbonizing our Business The Group recognizes the risks brought by climate change, and we support the transition to a low-carbon economy by factoring it into our energy management. We support the Climate Action Plan 2050 and the HKSAR government’s Energy Saving Plan for Hong Kong’s Built Environment 2015-2025+. In alignment with the government’s plan for carbon neutrality by 2050, we also participate in the Carbon Neutrality Partnership. A newly developed Decarbonization Strategy outlines our action plans to pursue low- carbon operations and enhance climate resilience. This year, six of our managed properties earned the Commitment to Net-Zero Certificate, accredited by the Hong Kong Quality Assurance Agency (HKQAA). Hong Yip and Kai Shing also purchased Renewable Energy Certificates (RECs) locally and internationally to offset carbon emissions. Hong Yip purchased RECs from CLP and its decarbonization efforts earned three awards from HKQAA: Pioneering Organization in Net Zero Contribution, Management Award for Net-Zero Contribution (Property Management): Visionary Blueprint towards Net-Zero and Leadership Award for Net-Zero Contribution. We have undertaken carbon audits at most of our properties since 2008, and – as a signatory to the Carbon Reduction Charter – participated in the Carbon Audit • Green Partner programme since 2009. Joining the Business Environment Council’s Net-zero Carbon Charter has also put SHKP and our property management subsidiaries on the right path to support Hong Kong’s decarbonization pledge. Hong Yip also participated in the CarbonCare Label and CarbonCare Circularity Label, committing to reducing carbon emissions. The Group has established 10-year targets for GHG emissions and energy consumption reduction. We track our progress towards those targets and, wherever possible, strive to avoid GHG emissions and reduce electricity consumption. Scope 1 and 2 GHG Emissions Intensities of Major Buildings Monitored by the EOC, 2019/20-2022/23 4 We achieved a significant reduction of around 27.1 % of scope 1 and 2 GHG emissions intensity since 2019/20 5 0.00 Year 4 EOC monitored 53 properties in 2019/20, 60 in 2020/21, 61 in 2021/22 and 62 in 2022/23. 5 The reduction was attributable to the continuous reduction of electricity use and the decreasing grid emissions intensities for both power companies in Hong Kong in the past few years. We will continue to closely monitor our progress and reduce GHG emissions across our operations where possible upon recovery from the pandemic. CO 2 2022/23 0.0593 CO 2 2021/22 0.0607 CO 2 2020/21 CO 2 0.0617 2019/20 0.0813 Sun Hung Kai Properties Limited Sustainability Report 2022/23 21 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