Sustainability Reports 2022/23

Strategies and Management We recognize the potential impact of our products and services, and are committed to maintaining our customers’ satisfaction, defending their rights, and promoting health and well-being. We strive to build sustainable homes and workplaces that align with SDGs. We actively engage with our customers and collect their feedback through channels, such as the SHKP Club as well as via loyalty programmes. The latter include our integrated loyalty programme The Point by SHKP for shopping malls, and our mobile-based Go Royal by SHKP for hotels. By offering privileges and rewards, we enhance customer experience and seek to embed sustainability in our programmes. To enhance efficiency and deliver smart homes of superior quality, we invest in technology and innovative solutions for our construction and property management arms. Creating Top-Notch Properties with Technology A vertically integrated development model maintains the highest level of quality control and sustainability throughout the life cycle of our projects, from land acquisition, project planning and management, material sourcing and construction to marketing, sales and property management. Quality, speed and efficiency are core values and considerations during procurement, the building of our premium properties, and conducting professional handover inspections. Our efforts are guided by the Group Sustainability Policy , Sustainable Building Policy , Climate Change Policy and Environmental Policy . This year, the Group Sustainability Policy was updated to strengthen our management of responsible marketing and customer well- being. We have offered a three-year warranty for new residential developments since 2013 – making us the first developer in Hong Kong to offer such a warranty. This has been highly acclaimed and the quality of our buildings has been fully recognized by our customers. Control measures and regular training ensure product and service safety for our employees. Where there are issues regarding product and service safety, investigations will be conducted and corrective action will be implemented. No incidents of non-compliance with regulations, resulting in a fine or penalty, and/or voluntary codes concerning the health and safety of products and services were recorded during the reporting year. We are committed to developing flexible and mixed properties that meet the needs of different customers. This year, TODTOWN, a large- scale transit-oriented superstructure development project in Shanghai, began construction. The project comprises a vast complex of residential buildings, office units, apartment-style offices, hotels and shopping malls. A newly constructed podium, also used as a commercial area, maximizes land resources through connecting the south and north ends of Xinzhuang. • Address customer needs and potential environmental impacts at project design stage • Keep up-to-date with technological developments, and use innovative solutions to improve efficiency and quality, including Building Information Modelling (BIM), Design for Manufacturing and Assembly (DfMA), hybrid reality platforms and 5G-enabled construction equipment • Carefully source and select materials, and strictly supervise construction to maintain a high level of safety and quality Design and Construction Pre-sale Handover After-sale • Inspect building quality by using the Group’s standards from in-house experts • Undertake quality audits by our project-monitoring team to verify that finished projects meet our standards and have minimal defects • Establish policies and internal controls for responsible marketing • Adopt a systematic and regular audit system for marketing and communication, in which external professionals and our internal expert committee regularly review materials such as sales brochures to ensure compliance with relevant regulations and industry guidelines, including the Residential Properties (First-hand Sales) Ordinance • Provide regular training on responsible marketing, advertising and sales at our subsidiaries • Organize webinars covering competition laws, intellectual property rights, copyrights and the use of trademarks • Plan property handovers six months in advance • Conduct at least three full-scale inspections – covering over 120 items – in every unit, to ensure quality and safety standards are met • Train sales, customer service and handover teams to deliver complete, accurate and comprehensible information • Offer a three-year warranty to buyers of new residential units • Use qualified safety officers to monitor and review sold properties • Provide homebuyers with mobile apps, via which they can sign documents, report issues during handover, and monitor repairs and maintenance during the warranty period • Collect homebuyers’ feedback via a handover survey warranty years 3 The project is expected to alleviate the shortage of high-end commercial projects in the area – hence becoming a hub for local communities. We are among the first developers in Hong Kong to seek WiredScore and SmartScore certifications, which assess digital connectivity and smart building respectively. The High Speed Rail West Kowloon Terminus Development will be our first project to strive for both certifications. Meanwhile, The Millennity was our first building to earn WiredScore Platinum certification. Our buildings have earned us Euromoney’s Best Overall Developer in Hong Kong for the ninth time, and Asiamoney’s Most Outstanding Company (real estate sector) in Hong Kong for the fourth time. Sun Hung Kai Properties Limited Sustainability Report 2022/23 44 Our Reporting Approach Message from the Sustainability Steering Committee Our Business Our Approach to Sustainability Value Created for People Value Created for Customers Value Created for Supply Chain Value Created for Community Appendices Value Created for the Environment