Sustainability Report 2023/24

Category 1 Purchased goods and services 2.55 % Category 2 Capital goods (including construction materials) 23.59 % Category 4 Upstream transportation and distribution (including construction materials) 2.24 % Category 5 Waste generated in operations 4.76 % Category 3 Fuel-and energy-related activities 0.59 % Category 6 Business travel 0.03 % Category 7 Employee commuting 2.52 % Category 11 Use of sold products 44.71 % Category 13 Downstream leased assets 18.80 % Category 12 End-of-life treatment of sold products 0.20 % Scope 3 Emissions We have been collecting data from various stakeholders since 2022 to consolidate our scope 3 inventory. This is the first time we are disclosing our scope 3 emissions for this financial year. Throughout the past three financial years, we identified that the most significant sources of our scope 3 emissions are category 11 - use of sold products, category 2 - capital goods (including construction materials), and category 13 downstream leased assets. As we progress towards our GHG emissions reduction target, we will continue to work with partners in the value chain to seize opportunities to reduce carbon. For detailed information on our calculation methodology for scope 3 emissions, please refer to Appendix III. Retrofitting and Energy Saving Initiatives To achieve our established emission-reduction targets and enhance our energy efficiency, we have undertaken retrofitting across our operations. This includes optimizing chiller sequencing, transitioning to LED lighting, replacing chiller plants, and installing smart escalator sensors. During the reporting year, we undertook more than 70 energy- saving projects at our malls, residential estates and commercial buildings. Of these projects, 64 applied for grants from the CLP Eco Buildings Fund and six from the HKE Smart Power Building Fund. Breakdown of Scope 3 Emissions by Category in FY2023/24 AI Management Systems IoT Chiller System MOKO • AI collected and analyzed data on temperature and CO 2 concentration, which provided insights into energy inefficiencies. It promptly adjusted ventilation or heating control to ensure occupant comfort and improve energy efficiency Kowloon Commerce Centre • With support from CLP Solutions, we used machine learning and AI to optimize the energy consumption of our chiller plants V City • Introduced IoT automatic controls and variable primary flow for chilled water pumps. Combined with other measures, energy consumption has been reduced by more than 30% during the reporting year System & Hardware Commissioning Building Information Modelling – Facility Management (BIM-FM) MOKO • Deployed more efficient water-cooled and air-cooled chillers. Combined with other measures, approximately 21 million kWh of electricity has been saved Royal Plaza Hotel • Replaced five air-cooled chillers and installed power monitor meters for the chillers to save 2.6 million kWh of electricity annually Sun Hung Kai Centre • Our BIM-FM platform collects and analyzes the building’s operational data to enhance our energy-efficient management. It saved 60 million kWh of electricity since 2022 via energy- saving measures Examples of our energy-saving efforts at managed properties during the reporting year: Sun Hung Kai Properties Limited | Sustainability Report 2023/24 < 29 > 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