Sustainability Report 2023/24

Sustainable Finance Green finance is an integral part of our decarbonization strategy. The Group is committed to broadening its green finance profile and incorporating sustainability performance indicators into its financing frameworks. We have received overwhelming response with oversubscriptions on our two signed sustainability-linked loans (SLLs) with prominent local and international banks. These two SLLs set new records in the Hong Kong real estate industry at their respective times, cumulatively valued at HK$29.4 billion. A set of predetermined sustainability performance goals is set for SHKP to achieve according to the loan agreement, including: Our Approach to Stakeholder Engagement The Group acknowledges the significance of engaging with stakeholders as a strategic approach to gain insights from their perspectives and priorities. This is expected to help us in the shaping of our sustainability strategies. Our Stakeholder Engagement Policy guides us on stakeholder engagement processes and ensures effective communication with stakeholders. The Group actively communicates with both internal and external stakeholders through various channels, engaging them in in-depth discussions on their concerns and interests. For the design, review and operation of our communication channels and grievance mechanisms, we regularly seek our stakeholders’ feedback and recommendations for further improvements. For details on the Stakeholder Engagement Process, please refer to Appendix II. The feedback from stakeholders has provided valuable insights that could enhance the Group’s sustainability strategies, policies and practices. The stakeholders shared their perspectives on important sustainability trends, including climate management, technological advancement and community investment, all of which can help refine our existing approach. We appointed an independent third-party consultant to moderate the panel discussion and individual interviews to ensure fair and open conversations as well as objective analysis and recommendations afterward. The proceeds generated will be allocated towards advancing ongoing sustainability projects or used as general working capital. To advocate changes in our value chain, Sanfield has collaborated with DBS Bank (Hong Kong) Limited to initiate a new sustainability-linked financing mechanism for suppliers and contractors. The programme offers early payment to Sanfield’s suppliers and contractors upon the achievement of sustainability-related performance targets, striving to simultaneously improve the cash conversion cycle and sustainability performance of our value chain partners. For more details, please refer to the Value Created for Supply Chain section. Electricity consumption intensity reduction Sustainability benchmarks and indices improvement Green building certifications attainment Review Panel Discussion Nine professionals comprised of academics, Gen Z employees, our contractors, suppliers and tenants, industry professionals and investors, were invited to attend panel discussions in review of the Group’s progress and improvement in sustainable development Online Survey Over 600 internal and external stakeholders were invited to submit feedback on our sustainable development, and provide rankings on financial and impact materiality on a list of 27 material ESG topics Individual Interview Eight professionals from diverse backgrounds, including academia, customer, supplier, NGO, board member and senior management from three key business functions, were invited to one-on-one interviews to share their feedback in strengthening sustainability strategy and to rank the priority of various ESG topics The Group adopts a three-year approach to engage with various stakeholder groups to review material ESG topics. During the reporting year, we initiated a holistic approach on stakeholder engagement and conducted a double materiality assessment: Sun Hung Kai Properties Limited | Sustainability Report 2023/24 < 10 > 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 Appendices