Sustainability Reports 2022/23

Guided by the belief in Building Homes with Heart, the Group incorporates Environmental, Social and Governance (ESG) factors into our business decision-making process. We have implemented robust corporate governance strategies and policies to support the sustainable development of the Group. The Sustainability Steering Committee closely monitors the progress of our sustainability strategies and targets while the Group maintains ongoing communications with stakeholders through a variety of channels, aiming to create long-term value for our stakeholders. Corporate Governance Our Board of Directors (‘the Board’) guides the overall direction of the Group’s strategies and development, including our sustainability and climate-related strategies and initiatives. The Board, via the Executive Committee, also monitors and reviews the Group’s corporate governance practices across business operations to maintain high standards and ensure compliance. The Audit and Risk Management Committee, chaired by Eric Li and comprising members Dicky Yip, Norman Leung and Richard Wong, assists the Board in monitoring and maintaining the effectiveness of the Group’s risk management and internal control systems. The Committee ensures the careful incorporation and evaluation of relevant risks in the decision-making process, including ESG-related risks. The latest terms of reference of the Committee are available on the Group’s website and The Stock Exchange of Hong Kong Limited’s website. The Group communicates with all stakeholders actively and regularly and provides timely and accurate disclosure to ensure a high level of transparency. Our ongoing efforts in maintaining robust corporate governance are well-recognized within the industry, winning for us many international and regional awards, including Hong Kong’s Best Overall Company 2023 by FinanceAsia as well as Asia’s Best CEO and Best Investor Relations Company in the Asian Excellence Awards of 2022 and 2023 from Corporate Governance Asia . For the full list of awards, please refer to our Corporate Website or Appendix I of this report. Further details of our corporate governance structure and practices are detailed in the Corporate Governance section of our Annual Report 2022/23. Our Approach to Sustainability Sustainability Governance 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, overseeing ethics issues and ensuring effective ESG risk management and internal control systems are in place, in which ESG risk elements, are taken into consideration during the decision-making process. The Executive Committee is responsible for implementing ESG strategies, evaluating and prioritizing material ESG issues, including ESG-related risks. The committee monitors and reviews corporate governance practices, including policies and reports, to maintain high standards and ensure compliance. 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. The committee endorses the annual Sustainability Report, identifies improvement areas on the Group’s ESG matters and makes recommendations where appropriate. The Sustainability Steering Committee (‘SSC’) is formed by the Group to supervise and oversee the execution of the Group’s ESG strategies across business operations. Chaired by an Executive Director of the Group, the SSC is comprised of senior managers from key divisions. The SSC supports management in overseeing global sustainability trends, identifying and managing material ESG issues as well as providing appropriate suggestions for continuous improvement. The SSC is also responsible for formulating, monitoring and reporting on the ESG work plans, performance, goals and targets. It reviews feedback from stakeholders through stakeholder engagement practices and reports to the management annually on stakeholder engagement outcomes. Review of the stakeholder engagement process is conducted every three years to assess its effectiveness and ensure effective communication between the Group and its stakeholders. The SSC also reviews the Group’s ESG-related policies regularly and the Sustainability Report annually. The SSC meets on a regular basis and reports to the Executive Committee where necessary. For details about our climate governance and other disclosure in accordance with the TCFD recommendations, please refer to the Value Created for the Environment section of this report. Sun Hung Kai Properties Limited Sustainability Report 2022/23 Our Reporting Approach Message from the Sustainability Steering Committee Our Business Our Approach to Sustainability 05 Value Created for the Environment Value Created for People Value Created for Customers Value Created for Supply Chain Value Created for Community Appendices