Sustainability Reports 2022/23

145 125 130 135 140 To date, 19 Enertainers have been deployed at our construction sites, saving around 2,800 tonnes of CO 2 annually To progress towards our targets and improve energy efficiency, we have implemented retrofitting across our operations, including chiller sequencing optimization, LED lighting, chiller plant replacement and smart escalator sensors. During the reporting year, we undertook more than 112 energy-saving projects at our shopping malls, residential and commercial buildings. Of these projects, 64 received grants from the CLP Eco Buildings Fund and six from the HKE Smart Power Building Fund. This year, we performed energy audits and carbon audits for 37 and 65 managed properties, respectively. For our tenants, we have installed around 2,000 smart meters and promoted eco-efficiency programmes. Complimentary energy audits, carbon audits and professional advice on energy-saving have been extended to more than 2,800 tenants at 55 of our managed buildings. At Harbour North, we retro-commissioned the chillers and cooling towers, and adjusted combinations of the air-conditioning system according to the temperature and relative humidity to achieve an optimal coefficient of performance (COP). This reduced total annual energy consumption by 18.6% compared to 2021. At V city, we retro-commissioned the chiller plants, mechanical ventilation and air conditioning. The resultant energy-saving reduced overall electricity consumption by 30% from 2014 to 2022. V city duly received the Gold Award for Best Green Practice in Malls at the Hong Kong Green Shop Alliance Awards 2022. At Sun Hung Kai Centre, a new central management system predicts energy use based on past records. It also allows remote monitoring of the entire building’s consumption, with easy access from mobile devices. This year, a Building Information Modelling – Facility Management (BIM-FM) platform collected operational data, facilitating the management of energy efficiency and maintenance. At Park Central and MOKO, a cloud-based IoT management platform analyzes energy performance. At V Walk, an automated equipment management system is introduced, along with chiller plant energy optimization technology and IoT applications, the property saves over four million kWh of electricity annually. We commissioned a third party to design energy solutions for our construction sites and are gradually replacing diesel-powered generators with Enertainers – advanced energy storage systems that provide diesel-free power. Electricity Consumption Intensities of Major Buildings Monitored by the EOC, 2019/20-2022/23 4 We achieved a significant reduction of around 8.9 % of electricity consumption intensity since 2019/20 6 Electricity consumption intensities (kWh/m 2 of total gross floor area) 2019/20 2020/21 2022/23 2021/22 139.83 136.78 129.66 127.32 Expanding Our Adoption of Renewable Energy To support decarbonization, SHKP promotes the use of renewable energy. We are building one of the Hong Kong’s largest solar energy networks: as at June 2023, there are a total of 13,800-plus solar panels at 51 of our buildings and two construction sites. By the end of 2024, we expect to have installed around 16,500 solar panels, covering around 450,000 square feet. These could generate 6.7 million kWh of electricity annually, and reduce carbon emissions by around 3,000 tonnes – equivalent to the CO 2 absorption of around 134,000 trees in one year. Solar panels at our Shap Sze Heung project are the foundation of the first renewable energy system at a temporary construction site in Hong Kong. We aim to produce 50,000 kWh of electricity in a year, supporting the site office and joining the CLP’s Feed-in Tariff (FiT) for the surplus. This has inspired us to install more solar systems at our construction sites. Meanwhile, small wind turbines power lights along the haul road. Working with joint-venture partners, we are building Hong Kong’s first solar farm on a landfill site, the South East New Territories Landfill in Tseung Kwan O. Covering 100,000 square feet, it will be capable of generating 1.1 million kWh of electricity annually upon completion. To further support renewable energy development, Hong Yip has pledged to purchase RECs from CLP for its own office since 2021/22. This is expected to offset around 240 tonnes of carbon emissions over 10 years. During the reporting year, Hong Yip purchased around 80,000 kWh of RECs. ICC also purchased 55,000 MWh of RECs to finance renewable energy projects, including wind, solar and hydro. These are expected to reduce carbon emissions by around 21,000 tonnes. To support Hong Kong’s transition to carbon neutrality, we will stay abreast of market trends and consider purchasing more RECs. 6 The reduction was mainly contributed by the extensive implementation of energy-saving measures at our EOC-monitored buildings, and also lower occupancy in our properties during the pandemic in 2022. Year Sun Hung Kai Properties Limited Sustainability Report 2022/23 22 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