Sustainability Report 2023/24

Sun Hung Kai Properties Limited | Sustainability Report 2023/24 < 103 > 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 III Scope 3 Category Applicability to SHKP Definition (and Exclusion) Source of Emission Factor 7 Employee commuting Yes Emissions from transportation of employees between their homes and their worksites. • GHG Protocol Scope 3 Evaluator 8 Upstream leased assets No Operation of assets leased by the SHKP (as lessee) in the reporting year has been covered in scope 2, thus is excluded in this scope 3 category to avoid double counting. N/A 9 Downstream transportation and distribution No SHKP does not involve the distribution of raw materials or finished products to end customers. This category is irrelevant to SHKP, thus is excluded. N/A 10 Processing of sold products No There is no further processing of sold products by SHKP. This category is irrelevant to SHKP, thus is excluded. N/A 11 Use of sold products Yes Emissions from the use of properties sold by SHKP in the reporting year. • CLP Group Sustainability Report • EMSD Energy Utilisation Index- Residential Sector • HK Electric Investments Sustainability Report 12 End-of-life treatment of sold products Yes Emissions from demolition and waste disposal of the properties sold by SHKP in the reporting year at the end of their life. • WBCSD report “Net-zero buildings - Where do we stand?” - end-of-life embodied carbon (Modules C1-C4 as in BS EN 15978) 13 Downstream leased assets Yes Operation of assets managed by Hong Yip and Kai Shing management companies and leased to other entities in the reporting year, not included in scope 1 and scope 2. • CLP Group Sustainability Report • EMSD Energy Utilisation Index- Commercial Sector • HK Electric Investments Sustainability Report 14 Franchises No SHKP does not own any franchises business. This category is irrelevant to SHKP thus is excluded. N/A 15 Investments No The low level of investment activity does not significantly contribute to SHKP’s overall GHG emissions, thus is excluded. N/A Scope 3 Category Applicability to SHKP Definition (and Exclusion) Source of Emission Factor 1 Purchased goods and services Yes Extraction, production and transportation of goods and services purchased and acquired that are not included in categories 2 to 8. • Hong Kong Water Supplies Department (WSD) Annual Report • Supply Chain Greenhouse Gas Emission Factors published by United States Environmental Protection Agency (USEPA) 2 Capital goods (including construction materials) Yes Extraction, production, and transportation of capital goods purchased or acquired by the company in the reporting year. Extraction, production, and transportation of construction materials purchased or acquired by the company in the reporting year. • Construction Industry Council (CIC) Carbon Assessment Tool (CAT) • Supply Chain Greenhouse Gas Emission Factors published by USEPA 3 Fuel- and energy- related activities Yes Emissions related to the production of fuels and energy purchased and consumed by the reporting company in the reporting year that are not included in scope 1 or scope 2. • CLP Group Sustainability Report • HK Electric Investments Sustainability Report • Towngas ESG Report • UK Government GHG Conversion Factors for Company Reporting published by UK Department for Environment, Food and Rural Affairs (DEFRA) 4 Upstream transportation and distribution (including construction materials) Yes Transportation and distribution of products purchased in the reporting year, between a SHKP’s suppliers and SHKP’s own operations in vehicles not owned or operated by the reporting company. • GWP from IPCC AR6 • Inter-airport distance from US Bureau of Transportation Statistics • Other transport routing from EcoTransIT World • USEPA Emission Factors for Greenhouse Gas Inventories 5 Waste generated in operations Yes Emissions from waste treatment (e.g. disposal in landfill, incineration, composting, recovery for recycling, waste-to-energy, wastewater treatment, etc.) in facilities owned or operated by third parties. • Hong Kong Drainage Services Department (DSD) Sustainability Report • UK Government GHG Conversion Factors for Company Reporting published by UK DEFRA • USEPA Emission Factors for Greenhouse Gas Inventories 6 Business travel Yes Emissions from transportation of employees for business-related activities in vehicles owned or operated by third parties. • International Civil Aviation Organization (ICAO) Carbon Emissions Calculator Scope 3 GHG Emissions Methodology We refer to the Greenhouse Gas Protocol (GHG Protocol) for scope 3 emissions calculation.