Sustainability Reports 2022/23

Consider the Environment in Procurement SHKP’s Environmental Policy, Sustainable Building Policy, Supplier Code of Conduct , Sustainable Supply Chain Management Guideline and procurement guidelines emphasize sustainable sourcing. We prioritize environmentally-friendly products and services, and mandate our property management subsidiaries to include environmental considerations in procurement decisions. In our construction activities, we encourage Sanfield to adopt materials, such as precast facades, aluminium formwork and green bricks to optimize resource efficiency. The use of pre-finished and smooth blocks, instead of plaster, can also reduce waste and enhance efficiency. As per BEAM Plus standards, we guarantee that timber used for all temporary works (falsework, formworks and hoarding works) are originated from sustainable forestry. Forest Stewardship Council (FSC) or similar certified timber is prioritized, reusing old timber where feasible. Our timber suppliers submit certificates, and delivery records on a monthly basis, as proof of their compliance. We strive to reduce embodied carbon emissions and aim to undertake carbon assessments at our construction sites. These will cover emissions, energy use, water use and transport. We consider sustainable and green building materials for development projects, such as environmental and health product declarations which cover locally extracted or recovered materials; low embodied carbon material; low-emitting VOC materials; and materials and packaging that can easily be recycled. Low-carbon materials for construction include FSC-certified timber, low-carbon concrete bricks, concrete with pulverized fuel ash and recycled steel. We encourage our concrete providers to achieve Construction Industry Council Green Product Certification, to reduce the embodied carbon in our buildings. For more details about our sustainable sourcing, please refer to Value Created for Supply Chain section. Water risk is among the ESG issues that we face. Our property management business is our biggest consumer of water, followed by construction and hotels. All water is purchased from the municipal supply; we do not draw from other water sources. Despite a low baseline water stress or risks posed by water scarcity in our portfolio 9 , we still emphasize water stewardship and have taken steps to reduce our water consumption and optimize use across our operations. As a participant in the Let’s Save 10L Water 2.0 campaign, we strive to promote conservation: • We upgraded water-related facilities, including installing sensors for water taps, collecting rainwater for irrigation, and using air-conditioner condensate for flushing • At V city, cleaning robots reuse wastewater, saving around 100,000 litres of water per year • V Walk introduced IoT sensors in pump rooms to detect water leaks and prevent wastage • Landmark North installed an automatic water cut-off system, and a thermal imaging camera to inspect water pipes. As at 2022, Landmark North had reduced water consumption by 15% compared to 2017, and won the Outstanding ECH 2 O Manager – Gold award at the ECH 2 O Awards 2022 • Mikiki team developed a smart watering system I-Gardening for monitoring soil humidity and controlling water valves, saving over 50% of water use • At our construction sites, grey water from offices is used for cleaning and washing, and treated before discharge. We have also installed dual-flush toilets to reduce water consumption • Our subsidiary Superpower utilizes smart technology to monitor and analyze its water use. Engineers inspect pumps, perform maintenance, record and analyze data by computer We discharge sewage in strict compliance with local government regulations, including the Hong Kong Water Pollution Control Ordinance. Residential and commercial effluent is discharged into the government drainage systems. We treat wastewater produced by our construction sites and discharge in accordance with relevant regulations. We will continue to track our water performance and implement advanced conservation measures. Introduced water conservation measures at more than 69 managed properties 8 commercial buildings and shopping malls won at the ECH 2 O Awards 2022 As part of the Enterprises Cherish Water Campaign, 71 of our managed properties signed the ECH 2 0 charter with water management plans 9 To understand the impact of water risk and water availability of our portfolio and integrate water risk management into our business strategy, a water stress testing and analysis was conducted with the WRI’s Aqueduct Water Risk Atlas tool. According to the tool, we have a low to medium overall water risk and all of our operations in Hong Kong have low (<10%) baseline water stress. Sun Hung Kai Properties Limited Sustainability Report 2022/23 33 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