Sustainability Report 2023/24

Sun Hung Kai Properties Limited | Sustainability Report 2023/24 < 100 > 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 Appendix II Validating the results To ensure our sustainability strategy remains in line with our operations for continued sustainability, we have engaged an independent consultant to conduct a new materiality assessment which employs the principle of ‘double materiality’. This principle is advocated by the Global Reporting Initiative (GRI) and other international standards, including the European Sustainability Reporting Standards (ESRS) as required under the Corporate Sustainability Reporting Directive (CSRD). Double materiality considers the influence of each ESG topic on SHKP’s enterprise value (‘financial materiality’) and impact on the economy, environment and people (‘impact materiality’). Assessing ESG topics through a double materiality lens allows us to assess the integration of sustainability within our business operations and shape the overall landscape of our sustainability approach. Double Materiality Analysis Methodology Our double materiality assessment consists of a three-step approach, enabling us to effectively identify, prioritize and validate ESG topics with highest significance to our business operations. This approach is guided by the AA1000 Stakeholder Engagement Standard and adheres to the principles of stakeholder inclusivity, materiality, responsiveness and impact of the latest AA1000 AccountAbility Principles and the GRI Standards 2021. Through the stakeholder engagement and double materiality assessment exercise, both internal and external stakeholders relevant to our operations were invited to evaluate the significance of sustainability issues and share their perspectives on the Group’s sustainability performance. With reference to the Group’s previous materiality topic list and leveraging insights from peer benchmarking and industrial trends, we updated the list of potentially material ESG topics related to the Group’s economic, environmental, and social impacts and performance. To reflect our findings based on the current sustainability landscapes and emerging trends, we have re-categorized material ESG topics into five key themes: • Governance and Economic • Environment • Workplace Practices • Society • Product Responsibility Ranking ESG topics through impact materiality and financial materiality We utilize both quantitative and qualitative inputs from stakeholders to develop the double materiality matrix. This visual representation demonstrates the relative importance of ESG topics within a broader context, enabling more informed decision-making by the Group. The prioritized material topics and finalized double materiality matrix are presented to the Sustainability Steering Committee for review and endorsement. Internal and external stakeholders, including employees, customers, NGOs, partners, investors, academia, suppliers, industry associations and media partners, were invited to participate in our online survey focusing on impact materiality. Additionally, senior management, investors and shareholders were invited to participate in our financial materiality survey. Altogether, we received over 600 responses. In the survey, respondents ranked ESG topics according to their perceived impact on the Group’s enterprise value and the Group’s impacts on ESG aspects on a numerical scale system. We also gathered qualitative feedback from our stakeholder review panel discussions and interviews to supplement the survey results. Identifying potentially material ESG topics Step 1 Step 2 Step 3