Sustainability Report 2023/24

Sun Hung Kai Properties Limited | Sustainability Report 2023/24 < 121 > 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 VI Paragraph Description Reference (Page number) and Remarks 28 To achieve this objective, an entity shall disclose: (a) information relevant to the cross-industry metric categories; Please see the reference for paragraph 29. (b) industry-based metrics that are associated with particular business models, activities or other common features that characterize participation in an industry; and Please see the reference for paragraph 32. (c) targets set by the entity, and any targets it is required to meet by law or regulation, to mitigate or adapt to climate-related risks or take advantage of climate-related opportunities, including metrics used by the governance body or management to measure progress towards these targets. Please see the reference for paragraphs 33-36. Climate-related Metrics 29 An entity shall disclose information relevant to the cross-industry metric categories of: (a) greenhouse gases – the entity shall: (i) disclose its absolute gross greenhouse gas emissions generated during the reporting period, expressed as metric tonnes of CO 2 equivalent, classified as: (1) Scope 1 greenhouse gas emissions; (2) Scope 2 greenhouse gas emissions; and (3) Scope 3 greenhouse gas emissions; (ii) measure its greenhouse gas emissions in accordance with the Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (2004) unless required by a jurisdictional authority or an exchange on which the entity is listed to use a different method for measuring its greenhouse gas emissions; Appendix III – Performance Tables (101-110) Appendix V – GRI Content Index (113-118) (iii) disclose the approach it uses to measure its greenhouse gas emissions including: (1) the measurement approach, inputs and assumptions the entity uses to measure its greenhouse gas emissions; (2) the reason why the entity has chosen the measurement approach, inputs and assumptions it uses to measure its greenhouse gas emissions; and (3) any changes the entity made to the measurement approach, inputs and assumptions during the reporting period and the reasons for those changes; Our Reporting Approach (1) Appendix III – Performance Tables (101-110) Appendix V – GRI Content Index (113-118) (iv) for Scope 1 and Scope 2 greenhouse gas emissions disclosed, disaggregate emissions between: (1) the consolidated accounting group; and (2) other investees excluded from paragraph 29(a)(iv)(1); Appendix III – Performance Tables (101-110) (v) for Scope 2 greenhouse gas emissions disclosed from paragraph 29(a)(i)(2), disclose its location- based Scope 2 greenhouse gas emissions, and provide information about any contractual instruments that is necessary to inform users’ understanding of the entity’s Scope 2 greenhouse gas emissions; and Appendix III – Performance Tables (101-110) (vi) for Scope 3 greenhouse gas emissions disclosed in accordance with paragraph 29(a)(i)(3), disclose: (1) the categories included within the entity’s measure of Scope 3 greenhouse gas emissions, in accordance with the Scope 3 categories described in the Greenhouse Gas Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard (2011); and (2) additional information about the entity’s Category 15 greenhouse gas emissions or those associated with its investments (financed emissions), if the entity’s activities include asset management, commercial banking or insurance; Appendix III – Performance Tables (101-110) (b) climate-related transition risks - the amount and percentage of assets or business activities vulnerable to climate-related transition risks; Our current study covers selected assets and businesses, we will explore the feasibility of expanding the scope in the future. Paragraph Description Reference (Page number) and Remarks 29 (c) climate-related physical risks - the amount and percentage of assets or business activities vulnerable to climate-related physical risks; Our current study covers selected assets and businesses, we will explore the feasibility of expanding the scope in the future. (d) climate-related opportunities - the amount and percentage of assets or business activities aligned with climate-related opportunities; Value Created for the Environment (16-45) (e) capital deployment - the amount of capital expenditure, financing or investment deployed towards climate-related risks and opportunities; Value Created for the Environment (16-45) (f) internal carbon prices - the entity shall disclose: (i) an explanation of whether and how the entity is applying a carbon price in decision-making; and (ii) the price for each metric tonne of greenhouse gas emissions the entity uses to assess the costs of its greenhouse gas emissions; Internal carbon pricing is currently not a part of our decision-making. We will explore the use of internal carbon pricing in the future. (g) remuneration - the entity shall disclose: (i) a description of whether and how climate- related considerations are factored into executive remuneration; and (ii) the percentage of executive management remuneration recognized in the current period that is linked to climate-related considerations. We will explore the feasibility of enhancing our remuneration policies by incorporating climate-related metrics into executive remuneration. 32 An entity shall disclose industry-based metrics that are associated with one or more particular business models, activities or other common features that characterize participation in an industry. In determining the industry-based metrics that the entity discloses, the entity shall refer to and consider the applicability of the industry-based metrics associated with disclosure topics described in the Industry-based Guidance on Implementing IFRS S2. Appendix VII - SASB Content Index (123) Climate-related Targets 33 An entity shall disclose the quantitative and qualitative climate-related targets it has set to monitor progress towards achieving its strategic goals, and any targets it is required to meet by law or regulation, including any greenhouse gas emissions targets. For each target, the entity shall disclose: (a) the metric used to set the target; Value Created for the Environment (16-45) (b) the objective of the target; Value Created for the Environment (16-45) (c) the part of the entity to which the target applies; Value Created for the Environment (16-45) (d) the period over which the target applies; Value Created for the Environment (16-45) (e) the base period from which progress is measured; Value Created for the Environment (16-45) (f) any milestones and interim targets; Value Created for the Environment (16-45) (g) if the target is quantitative, whether it is an absolute target or an intensity target; and Value Created for the Environment (16-45) (h) how the latest international agreement on climate change, including jurisdictional commitments that arise from that agreement, has informed the target. Value Created for the Environment (16-45)