Sustainability Report 2023/24

Strategy The Group has formulated climate strategies and action plans to respond to pressing climate risks and capture opportunities, with details listed below. We performed scenario analysis and risk prioritization to identify climate-related risks and opportunities that are material to our own Sustainable Finance Sustainable finance forms an integral part of our decarbonization strategy, and we have incorporated sustainability factors into our financial mechanisms. Following the release of our sustainability-linked loans (SLL), we have received overwhelming responses on our SLLs. To advocate changes in our value chain, Sanfield has collaborated with DBS Bank to initiate a new sustainability-linked financing mechanism for suppliers and contractors this year. For more details, please refer to the Sustainable Finance section Deployment of Renewable Energy We actively expand our network of renewable energy, including solar panels, at our managed properties and construction sites. Similarly, we continue to purchase RECs as means to support our decarbonization efforts. Furthermore, EV charging facilities are being increasingly installed at our properties. For more details, please refer to Accelerating the Deployment of Renewable Energy section Collaborations with Research Institutes We have also continued our research on green building development, and piloted low-carbon products as part of our collaboration with PolyU. For more details, please refer to the Innovative Sustainable Building Practices section Tenant Engagement We actively communicate and encourage tenants to improve their environmental performance. Eco-efficiency programmes are implemented, with the provision of free energy, carbon audits, and technical recommendations to assist tenants in reducing consumption. This will then in turn reduce our downstream carbon footprint. Furthermore, the Group has exchanged its first ever green lease agreement with its anchor tenant, UBS, at International Gateway Centre. For more details, please refer to the Advancing Decarbonization in Our Business and Partnering with Tenant Through Green Lease section Decarbonization Advocacies In support of the international initiative, the Group has become a TCFD supporter since 2023. We fully support HKSAR Government’s Climate Action Plan 2050 and the Energy Saving Plan for Hong Kong’s Built Environment 2015-2025+. We also participate in the Carbon Neutrality Partnership to align with local government’s objective to achieve carbon neutrality by 2050. We have also signed the Business Environment Council’s Net-zero Carbon Charter. We are now actively studying the sectorial decarbonization approach and exploring the possibility of formulating a strategy for long-term net-zero carbon commitment Decarbonization Strategy Our multi-pronged Decarbonization Strategy outlines our plans in transitioning to a green economy. Covering various aspects, including green energy, green transport and stakeholder engagement, this strategy guides our decarbonization efforts. Our transition plans depend on the resources available and allocated, and assume the regulatory environment will remain stable, enabling us to achieve our environmental targets and transition goals. This year, Sanfield has reached another milestone in decarbonization by replacing diesel construction equipment with electric alternatives. For more details, please refer to the Advancing Decarbonization in Our Business section 10-year Targets on GHG Emissions and Electricity Consumption We have established 10-year targets on GHG emissions and electricity consumption in the Group. Additionally, specific energy-saving targets have been established for the majority of our residential and commercial buildings, hotels and malls. Having already met our FY2029/30 GHG emissions target, we have set a new goal for the future. For more details, please refer to the Sustainable Building and Environmental Targets section business and value chain as well as their financial and non-financial impacts. This will enable us to effectively manage climate risks, whilst leveraging opportunities to enhance the Group’s resilience and sustainability. For more information on our approach to identify and assess climate-related risks and opportunities, please refer to Risk Management section below. Sun Hung Kai Properties Limited | Sustainability Report 2023/24 < 32 > 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