Sustainability Reports 2022/23

We adopt a three-step approach which allows us to identify, prioritize and validate sustainability topics most significant to our business and stakeholders. The approach is guided by the AA1000 Stakeholder Engagement Standard and with reference to the principles of stakeholder inclusivity, materiality, responsiveness and impact of the latest AA1000 AccountAbility Principles and the GRI Standards 2021. An independent consultant is engaged to perform a stakeholder engagement exercise to identify material ESG issues that are relevant to our business. Internal and external stakeholders were invited to assess the importance of sustainability issues and provide their views on the Group’s sustainability performance. This enables us to further align our business practices with the latest development. Materiality Analysis Methodology With reference to previous materiality analysis, we identified and refined the list of sustainability issues related to the Group’s economic, environmental and social impacts and performance based on industry research and peer benchmarking. We grouped ESG topics into six key themes: • Economic and general • Environment • Human rights • Product responsibility • Society • Workplace practices We engaged our stakeholders, including employees, customers, NGOs, partners, investors, academia, suppliers, industry peers and media partners through online surveys on a regular basis. Stakeholders ranked ESG topics according to their perceived importance to the Group on a scale of 1 to 6, with ‘1’ being not important at all and ‘6’ being very important. Stakeholders were also asked to review the list of material topics from preceding years and determine if topics should remain unchanged and if additional topics should be considered. ESG topics were plotted in a matrix which shows their degree of importance to stakeholders relative to the significance of their impact on the Group’s business. We gathered qualitative feedback from our stakeholder review panel to validate the ranked results. The Sustainability Steering Committee, with the assistance of the independent consultant, reviewed and approved the scope, topic boundaries and completeness of the prioritized material topics. Identifying ESG Topics Ranking ESG Topics Validating the Results Step 1 Step 2 Step 3 Sun Hung Kai Properties Limited Sustainability Report 2022/23 77 Appendix II 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 Value Created for the Environment