Sustainability Report 2023/24

Sustainability Steering Committee 7 October 2024 Message from the Sustainability Steering Committee We are pleased to present the SHKP Sustainability Report 2023/24, which showcases our progress and achievements during the reporting year. The past year saw our Group continue our sustainable development effort in driving positive change and creating lasting value for our stakeholders. We are making substantial progress towards our environmental targets, broadening our green portfolio, aligning operations with best practices, and enhancing sustainability disclosures to reference the Sustainability Accounting Standards Board standards. This year, we conducted a thorough materiality assessment and stakeholder engagement, following the global emerging concept of double materiality. This gives us an important refreshed understanding of the impact and significance of ESG issues for SHKP and the wider community. Through our Decarbonization Strategy, we support the national call to achieve carbon neutrality by 2060 and the HKSAR Government’s Climate Action Plan 2050. For the first time, we have disclosed our scope 3 emissions from our value chain. We continued to strengthen our climate-related disclosure by observing recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and the International Sustainability Standards Board (ISSB)’s IFRS S2 Climate- related Disclosures. Sustainable buildings are a key priority. We actively pursue Leadership in Energy and Environmental Design (LEED) Gold or Platinum certification for all new core commercial projects. As at June 2024, the Group has earned 150 green-building-related certificates in Hong Kong. The High Speed Rail West Kowloon Terminus Development is the latest highlight of our commitment, with outstanding achievements in six prestigious certifications related to green building, well-being, and smart technologies. The development’s first anchor tenant has signed a green lease agreement, ensuring sustainable infrastructure standards are met. Our 10-year environmental targets guide us towards a low-carbon future, and we are on track to meeting these targets. Having met our FY2029/30 greenhouse gas emissions target over the past year, we have established a new target for the future. To drive decarbonization for the community, we are building one of the Hong Kong’s largest solar energy networks and expanding our electric vehicle charging facilities. Employees are the foundation of the Group. We partner with educational institutions to foster young talent and provide comprehensive training that caters to the needs of our employees. This year, we have made a significant milestone by becoming a signatory to the United Nations Global Compact, committing to sustainable and socially responsible practices. The Group is dedicated to delivering excellent property management services. Since late 2013, the Group has been offering a 3-year warranty to first-hand purchasers of newly sold developments in Hong Kong. We invest in state-of-the-art technology such as 5G applications and ensure the health and well-being of our customers and tenants by earning WELL certifications and implementing various initiatives. To enhance customer experience, we introduced Instant Point Earn in major malls where a QR code scan enables members to earn loyalty points immediately upon a purchase. Our loyalty platforms – The Point by SHKP, SHKP Club and Go Royal – facilitate communication with customers and better tailor our services to their needs. Our commitment to sustainability is reflected in our supply chain management. The comprehensive supplier evaluation process assists us in minimizing and managing risks in the supply chain. This year, our construction arm, Sanfield, has reached another milestone in decarbonization by replacing diesel construction equipment with electric alternatives and launching the Sustainability-linked Supplier Payment Services programme, the first of its kind in Hong Kong’s construction industry. On the community front, we prioritize promoting STEM education and reading among youth; encouraging sports for charity; and support for the underprivileged. Our community initiatives, such as free lent of a land for the government’s Light Public Housing, development of transitional social housing at United Court and our latest sports-cum- entertainment project, GO PARK Sai Sha, demonstrate our commitment to social integration, well-being and community development. Our sustainability efforts have earned local and international recognitions, including our debut in the Dow Jones Sustainability Asia Pacific Index, and the second consecutive year in the S&P Global Sustainability Yearbook 2024 and S&P Global Sustainability Yearbook (China Edition) 2024. For the first time, Morningstar Sustainalytics recognized us as a regional top-rated ESG performer. We remain a constituent member of the Hang Seng Corporate Sustainability Index and the FTSE4Good Index Series of London, and maintained an ‘A’ rating in the latest MSCI ESG Ratings. We are grateful for the guidance and leadership of our Chairman and the Board of Directors, and the unwavering support of our stakeholders. We look forward to ongoing, meaningful engagement with stakholders to create a sustainable and mutually beneficial future. Sun Hung Kai Properties Limited | Sustainability Report 2023/24 < 2 > 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