Sustainability Report 2023/24

We also extend our risk management along our value chain. Our Sustainable Supply Chain Management Guideline outlines our approach on vendor registration, tender selection, identification of critical suppliers, performance rating and risk exposure. For more details, please refer to Managing the Supply Chain section. Policy and Legal (short/medium/long term) • Stricter building regulations • Emerging regulations on carbon pricing Potential Impact • Increased need for employee knowledge of green building requirements • Increased litigation risks for non-compliance with green building policies • Increased business uncertainty, arising from changing regulations and global trends • Increased pressure to invest in low-carbon technologies and materials Potential Financial Impact • Increased capital expenditure on low-carbon products • Increased capital investment for building retrofitting to meet building regulations • Increased training costs for policy and regulation • Increased fines owing to non-compliance • Increased capital expenditure on low-carbon technologies and materials • Increased expenditure on carbon price Example of Our Strategy • Integrate sustainable building features and low-carbon materials requirements into building design • Fulfil green building commitments as specified in Sustainable Building Policy • Continuously track and work towards our 10-year environmental targets • Assess the possibility of carbon pricing in our operations and explore strategies to achieve carbon neutrality • Participate in regulatory pilot scheme and provide feedback to the government on emerging laws and regulations • Participate in seminars and discussions hosted by professional organizations to stay informed about market trends and regulatory changes Reputation and Market (short/medium/long term) • Rising market demand for green buildings • Rising consumer preference for sustainable living Potential Impact • Influenced the business direction by prioritizing investment in green buildings • Increased need to train staff in green building practices to answer buyer inquiries • Increased drive to develop green buildings and sustainable services • Reduced competitiveness if consumer demands are not met Potential Financial Impact • Increased capital expenditure on low-carbon products • Increased revenue from growing sales and growing green building rentals • Increased revenue from the expanding green market Example of Our Strategy • Continually expand our portfolio of green-certified buildings • Proactively manage our environmental performance with ISO 14001 and ISO 50001 management systems to mitigate risks associated with climate change, energy consumption and carbon emissions • Foster collaborations with partners and universities to drive green technology development • Advance green finance by incorporating sustainability targets into our financing mechanisms Sun Hung Kai Properties Limited | Sustainability Report 2023/24 < 38 > 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