Sustainability Report 2023/24

Environmental Management System and Smart Management We regularly assess the effectiveness of our management systems through internal and external reviews. Our property management and construction subsidiaries are certified with international environmental and energy management standards and undergo annual audits, both internal and external. Corrective measures ensure ongoing improvement, such as improving management responsibilities and enhancing data monitoring. Detailed operating manuals and procedures are in place to facilitate internal communication on environmental management issues. Regular training enhances employees’ awareness and understanding of their duties as well as emerging best practices and regulatory developments. During the reporting year: Both of our property management subsidiaries have earned the Hong Kong Q-Mark Council’s Green Mark Certification, acknowledging our effective environmental management. We enhance the efficiency and effectiveness of the environmental management by investing in technologies, such as the Internet of Things (IoT), virtual reality (VR) and artificial intelligence (AI). Sustainability Data Management System We have collected and monitored sustainability data through our web-based data management system since 2014. Business units are required to routinely submit consolidated data for checking by the sustainability team. To stay up to date with market trends and disclosure requirements, we review and upgrade our system regularly. Innovative Sustainable Building Practices Sustainability features throughout the life cycle of SHKP’s buildings, from design and construction to operation. Our commitment to sustainable building can be found in our Sustainable Building Policy and the Sustainable Building and Environmental Targets sections. A professional team – 73 of whom are accredited Hong Kong Building Environmental Assessment Method (BEAM) professionals – strives to improve our energy efficiency, material use and waste management through green and innovative technologies. We collaborate with universities and research institutes to drive innovations in the decarbonization of construction. With the Hong Kong Polytechnic University (PolyU), we research green applications, green building materials and green construction processes. A smart energy management project was piloted at our High Speed Rail West Kowloon Terminus Development. We use AI, IoT and digital twin technology to improve energy efficiency and minimize embodied carbon. Among our innovations is concrete that captures carbon. This is the result of a novel combined steam and carbon dioxide curing method, carbon capture coating and a carbon dioxide activation process. The benefits are a shortening of the overall construction time, enhanced durability and offset carbon emissions. Kai Shing collaborated with PolyU, CLPe Solutions, Jardine Engineering Corporation Limited and Trane Service Hong Kong to formulate a charter on Smart Energy Optimization and AI Control. We aim to leverage AI controls in air conditioning systems to save three million kWh of electricity for eight of Kai Shing’s managed properties between July 2023 and June 2025. SHKP’s subsidiary Glorious Concrete provides the industry with low-carbon, ready-mixed concrete with Construction Industry Council (CIC) Green Product certification. The range includes four types of Platinum-grade ground granulated blast-furnace slag (GGBS) concrete. We continually explore the potential of our buildings to achieve green certifications. In May 2024, SHKP, Hong Yip and Kai Shing signed a Memorandum of Understanding (MoU) with the Hong Kong Green Building Council and BEAM Society Limited to extend BEAM Plus green building standards and certifications, where feasible, to projects outside Hong Kong, contributing to a wider adoption of BEAM Plus as a recognized green building standard and driving sustainable building development. ISO 14001 ISO 50001 ~ 84% of our managed properties in the reporting scope were certified with ISO 14001 or ISO 50001 management systems 91 buildings and sites were ISO 14001 -certified 12 buildings were ISO 50001 -certified The MoU represents our commitment in enhancing sustainable building development Sun Hung Kai Properties Limited | Sustainability Report 2023/24 < 19 > 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