Sustainability Reports 2022/23

Sustainability Steering Committee 4 October 2023 We are delighted to present the SHKP Sustainability Report 2022/23, highlighting our sustainability efforts during the reporting year. With the lifting of anti-pandemic measures and reopening of the borders, the Group is well placed to seize business opportunities from the resumption of social and economic activities, and to continue our pursuit of sustainable development. The year 2022/23 made strides in our sustainability journey as we achieved good progress towards our environmental goals and expanded our green portfolio, while refining our sustainability governance and climate-risk management. By regularly engaging with stakeholders, we are able to identify material ESG issues that matter to our business and communities. During the period under review, we updated our Code of Conduct, Environmental Policy, Group Sustainability Policy, Health and Safety Policy and Supplier Code of Conduct. Two new policies – for Stakeholder Engagement and Cybersecurity – were established to help us stay ahead with best practices in the concerned areas. The Group supports the national call to achieve carbon neutrality by 2060 as well as the HKSAR Government’s Climate Action Plan 2050. To this end, we formulated a Decarbonization Strategy to guide our efforts for low-carbon transition and enhance our climate resilience. We are on track to develop a scope 3 emissions inventory that will enable us to better manage emissions throughout the value chain. We also undertook a detailed climate risk assessment, with scenario analysis, and continued to strengthen our disclosure, based on the Task Force on Climate-related Financial Disclosures (TCFD) framework. We remain committed to developing green buildings, striving to achieve Leadership in Energy and Environmental Design (LEED) Gold or Platinum certification for all new core commercial projects. For existing buildings, our four flagship projects – including the International Commerce Centre (ICC), Sun Hung Kai Centre, One IFC and Two IFC – were certified with LEED Platinum lately. As at June 2023, the Group has earned 122 green-building-related certificates in Hong Kong. Integral to our low-carbon transition was our continued progress on the 10-year environmental targets for greenhouse gas emissions, energy, water and construction waste diversion. We also further expanded our solar energy applications at our managed properties. To meet the rising adoption of electric vehicles (EV) in Hong Kong, SHKP launched Hong Kong’s first bonus points-redeemable super-fast EV charging service in SHKP shopping malls via the Points by SHKP customer loyalty programme to create convenience for shoppers who need EV charging facilities and promote EV driving as a form of green transport in Hong Kong and lower carbon emissions in the community. We provide superior property management services for residents, customers and tenants. Apart from an industry-leading three-year warranty for buyers of new residential developments, we have been enhancing our facility management services with new technology and 5G applications. We always keep close tabs on customer needs by listening and communicating carefully through online and loyalty platforms – including The Point by SHKP, SHKP Club and Go Royal. Our achievements are driven by a high-calibre team. Placing a strong emphasis on nurturing talent and the younger generation, we undertake internship programmes with education institutions and support the Hong Kong government’s Strive and Rise Programme to help underprivileged students. We offer extensive training to management and employees, particularly on environment, social and governance (ESG)-related topics. Our sustainability standards extend to our supply chain. We closely monitor the ESG performance of our suppliers; in particular, our construction arm’s Supply Chain Management Guideline guides the identification and evaluation of critical suppliers. Working with our industrial partners and leveraging technology, we support innovative development in construction. Our subsidiary Sanfield Construction Innovations Limited develops smart construction solutions using robots, Internet of Things (IoT), 5G and artificial intelligence. During the period, the Group launched a R&D partnership with The Hong Kong Polytechnic University for developing the first-ever blockchain-based platform for construction management, and innovative solutions that aim to reduce carbon emissions and increase energy efficiency. Guided by the spirit of Building Homes with Heart, the Group is committed to creating long-term positive social impact in the community. We continue to promote reading among youths with a focus on STEM education, encourage sports for charity and support the underprivileged and youth development. With the resumption of normalcy, we were able to bring back our signature SHKP Hong Kong Cyclothon during the year. We continue to support social innovation and integration by sponsoring and engaging in community programmes, such as United Court for underprivileged families and a multigenerational residential project in Sai Sha. Our sustainability initiatives are well recognized by the investment community. We remain a constituent member of the Hang Seng Corporate Sustainability Index and the FTSE4Good Index series of London, and continued to receive a rating of ‘A’ in the latest MSCI ESG Ratings. This year, the Group was listed for the first time in the S&P Global Sustainability Yearbook 2023 and S&P Sustainability Yearbook (China) for its sustainability performance. We would like to express our gratitude for the invaluable guidance of our Chairman and the Board of Directors, and for the unwavering support of our stakeholders. Moving forward, we will continue to engage with our stakeholders in the pursuit of a sustainable and mutually prosperous future. Message from the Sustainability Steering Committee Sun Hung Kai Properties Limited Sustainability Report 2022/23 Our Reporting Approach Message from the Sustainability Steering Committee Our Business Our Approach to Sustainability 02 Value Created for the Environment Value Created for People Value Created for Customers Value Created for Supply Chain Value Created for Community Appendices