Sustainability Report 2023/24

Further Studies on the Climate Assessment Results In 2024, we conducted an online survey and hosted a workshop with the support from our third-party consultant. They aimed to understand the impacts of climate risks on the Group and explore strategic plans and responses to these risks. The participants included representatives from project design, construction, project management, leasing and property management. Participants from various business units also shared their experiences of previous climate events, discussed the likelihood and potential impacts of climate risks for the upcoming year, and exchanged ideas on climate strategies and action plans specific to their business units. This valuable input, along with the challenges and resource constraints identified, was synthesized into a comprehensive report for management, enhancing strategic planning and ensuring a proactive management of climate-related risks. Furthermore, we conducted a detailed study to quantify the potential financial impacts of climate-related opportunities, particularly in terms of potential savings from carbon taxes. Utilizing projections from the NGFS, the analysis revealed that the GHG emissions reduction in EOC- monitored buildings by around 4,456 tCO 2 e in FY2023/24, compared to the previous year, has led to savings of around HKD 1.7 million 8 in carbon taxes under the NGFS Below 2°C scenario. Looking forward, by achieving the target of reducing scope 1 and 2 GHG emissions intensity by 35% by 2030, we could further reduce the carbon tax. 8 The calculation based on a carbon tax of USD48/tCO 2 is expected to be introduced in China in 2030, as suggested by the NGFS Phase 4 Scenario Explorer. 9 Includes BEAM Plus new and existing buildings (comprehensive and selective schemes), LEED or BREEAM certificates received by properties owned or managed by SHKP in Hong Kong. 10 Includes development projects in Hong Kong, which have achieved or committed to BEAM Plus, LEED or BREEAM certificates. 11 This is the first year we are disclosing our scope 3 emissions. Metrics and Targets We have established various metrics and targets to monitor our environmental performance. For more details, please refer to Sustainable Building and Environmental Targets section. In FY2023/24, we have introduced three additional key metrics, which are designed to specifically track our progress in managing the financial aspects of climate-related risks and opportunities. We have observed that our revenues and capital expenditures may be impacted during the transition to a low-carbon economy. To effectively monitor these changes, we will continue to refine and expand these metrics. This will ensure that our monitoring efforts remain aligned with our development goals and emerging best practices in the industry. To ensure we are continuously progressing towards our established targets, we regularly monitor our GHG emissions and sustainable building performance. Starting from 2022, we have engaged a third-party consultant to conduct a comprehensive analysis of our scope 3 emissions. For more details, please refer to Appendix III. 205,935 (tonnes CO 2 e) Scope 2 1,774,722 (tonnes CO 2 e) 43,835 (tonnes CO 2 e) Scope 1 Scope 3 Group’s GHG Emissions by Scope 11 Financial year CO 2 e (tonnes) 0 50,000 150,000 250,000 100,000 200,000 300,000 2,000,000 2019/20 2020/21 2022/23 2023/24 2021/22 266,658 42,750 210,896 205,935 45,827 1,774,722 208,992 37,885 212,262 40,751 Scope 1 Scope 2 Scope 3 43,835 Sun Hung Kai Properties Limited | Sustainability Report 2023/24 < 39 > 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 Metrics Categories Metrics FY2023/24 Climate- related Opportunities Percentage of gross rental income from certified green buildings 9 ~ 79% Capital Deployment Investment in energy-efficient or low-carbon products/services from property management subsidiaries ~ HKD 85.4 million Percentage of annual capital investment in green building development 10 ~ 93%