Sustainability Reports 2022/23

Climate Change Management Enhancing our climate resilience and preparedness to address climate risks is important and urgent. This year, we stepped up our efforts by engaging a third-party consultant to perform a detailed climate risk assessment, with scenario analysis. The results allow us to understand the potential impacts of climate change on our operations and value chain, and enable us to devise mitigation and adaptation strategies. Going forward, we will continue to review and enhance our climate risk assessment, to better understand the impact of climate change. We have adopted the Task Force on Climate-related Financial Disclosures (TCFD) framework for our climate disclosures. Its four pillars are governance, strategy, risk management, and metrics and targets. We will continually enhance our TCFD reporting to respond to stakeholders’ expectations and align with best practices. Governance Strategy Risk management Metrics and targets • Our Board of Directors (‘the Board’) is responsible for leading and overseeing the Group’s ESG issues. The Board, via the Executive Committee, is engaged in developing and integrating ESG strategies into the Group’s long-term development plan, ensuring effective ESG risk management and internal control systems are in place, in which ESG risk elements, including climate-related risks, are taken into consideration during the decision-making process • The Executive Committee is responsible for implementing ESG strategies, evaluating and prioritizing material issues, including climate-related risks. The committee also tracks the progress towards the Group’s ESG performance and targets as well as reviews ESG programmes with their impacts on the economy, environment and other stakeholders Our Sustainability and Climate-change-related Policies: • The Group Sustainability Policy sets out our commitment and approach to sustainable development, creating long-term value for stakeholders • The Climate Change Policy details our strategy and efforts regarding climate change mitigation, adaptation and resilience • The Environmental Policy o utlines our approach to achieve sustainable buildings and operations, and to meet environmental challenges, such as resource use, biodiversity and climate change. It conveys to stakeholders our commitment to protecting the environment and reducing the impact of our operations • The Sustainable Building Policy guides our development of low-carbon, climate-resilient properties, and to focus on users’ wellness • The Audit and Risk Management Committee stays abreast of evolving environmental rules and regulations, monitors and reviews transition risks • The Sustainability Steering Committee manages and oversees sustainability issues in our daily operations and regularly reviews related policies, including the Climate Change Policy. It devises, monitors and reports on environmental work plans, performance, goals and short- and long-term targets • The inter-departmental Crisis Operation Management Committee regularly reviews climate-related risks and our resilience to extreme weather. It is led by two Executive Directors, who deal with critical incidents at our business units and subsidiaries These policies are reviewed regularly by the Sustainability Steering Committee. Please refer to our website for the full versions and refer to the Smart and Sustainable Development and Expanding Our Adoption of Renewable Energy sections for further information. Sun Hung Kai Properties Limited Sustainability Report 2022/23 23 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