Sustainability Reports 2022/23

Climate change poses physical and transition risks as well as opportunities, for our business. Through scenario analysis and risk prioritization, we have identified risks and opportunities that are material to our business and value chain as well as their respective financial and non-financial impacts. Going forward, we will continue to develop corresponding mitigation strategies and plans aligned with the identified risks and opportunities. This will enable us to manage climate risks while leveraging opportunities to enhance our resilience and sustainability. The processes and approach for identifying and assessing climate-related risks and opportunities are outlined in the Risk Management section below. We joined and became the TCFD supporter in 2023. We support the HKSAR government’s Climate Action Plan 2050 and the Energy Saving Plan for Hong Kong’s Built Environment 2015- 2025+. Aligning with the government’s plan for carbon neutrality by 2050, we participated in the Carbon Neutrality Partnership. We are also studying a strategy for a long-term net-zero carbon commitment. We mitigate climate risks by promoting renewable energy: actively expanding our renewable energy network at managed properties and construction sites; increasing the availability of electric vehicle (EV) charging facilities; and procuring RECs to support our decarbonization efforts. For more details, please refer to the Expanding Our Adoption of Renewable Energy section. To research and pilot green building development and low-carbon products, we collaborated with PolyU. For more details, please refer to the Smart and Sustainable Development section. We actively encourage our tenants to improve their environmental performance and promote low-carbon operations. By initiating eco-efficiency programmes and providing free energy audits, carbon audits and technical advice, we help tenants reduce consumption which in turn will reduce our downstream carbon footprint. For more details, please refer to the Decarbonizing Our Business section. Climate Action Plan 2050 To encourage decarbonization in Hong Kong’s real estate and construction industries, we support the Business Environment Council’s Net-zero Carbon Charter. This year, we formulated a multi-pronged Decarbonization Strategy that outlines the directions for our transition to low-carbon operations. It addresses climate-related risks to our business and covers aspects, such as fostering innovation, adopting renewable energy and engaging stakeholders. We have also established 10-year targets on GHG emissions and energy consumption to accelerate decarbonization. The targets have been conveyed to our subsidiaries and business units, and specific energy-saving targets have been established in most of our residential and commercial buildings, hotels and shopping malls. For more details, please refer to the Sustainable Building and Environmental Targets section. To prepare for the transition to a low-carbon economy, we have incorporated sustainability factors into our financial mechanisms. Last year, we issued two sustainability-linked loan facilities that will fund both our ongoing operations and our sustainability initiatives. For more details, please refer to the Sustainable Finance section. Governance Strategy Risk management Metrics and targets Sun Hung Kai Properties Limited Sustainability Report 2022/23 24 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