Sustainability Report 2023/24

Our Approach to Sustainability The core philosophy of Building Homes with Heart has led the Group to integrate Environmental, Social and Governance (ESG) factors into its decision-making process. Our commitment to sustainable development is underpinned by our robust corporate governance policies and strategies. The Sustainability Steering Committee oversees the implementation and progress of our sustainability objectives. Through diverse communication channels, we maintain active engagement with our stakeholders to generate long-term value and foster sustainable growth. Corporate Governance Our Board of Directors (the Board) guides the overall direction of the Group’s strategies and development, including our sustainability and climate-related strategies and initiatives. The Board, via the Executive Committee, also monitors and reviews the Group’s corporate governance practices across business operations to maintain high standards and ensure compliance. Chaired by Independent Non-Executive Director Eric Li with Dicky Yip, Norman Leung and Richard Wong as members, the Audit and Risk Management Committee supports the Board in overseeing the effectiveness of the Group’s risk management and internal control systems such that various risk elements, including ESG-related risks, are being evaluated and integrated into our decision-making process. The latest terms of reference of the Committee can be accessed on both the Group’s website and the website of The Stock Exchange of Hong Kong Limited. The Group engages in regular and active communication with stakeholders, ensuring that information is disclosed timeously and accurately to maintain a high level of transparency. Our robust corporate governance has garnered recognition within the industry, earning us numerous international and regional awards, including Hong Kong’s Best Overall Company 2024 by FinanceAsia as well as Asia’s Best CEO and Best Investor Relations Company, Best Investor Relations Professional, and Best Corporate Communications in Asian Excellence Award of 2024 from Corporate Governance Asia . For the full list of awards, please refer to our Corporate Website or Appendix I of this report. Further details of our corporate governance structure and practices are detailed in the Corporate Governance section of our Annual Report 2023/24. Sustainability Governance The Group’s commitment and actions on sustainability are guided by a well-established governance structure, where roles and responsibilities are appropriately defined and maintained. Our sustainability governance structure is outlined as below: For further details about our climate governance and other disclosure with reference to the TCFD recommendations and IFRS S2, please refer to the Value Created for the Environment section of this report. Leading and overseeing the Group’s ESG-related issues The integration of ESG strategies into the Group’s long-term development plans are driven by the Board through the Executive Committee. Through this arrangement, the Board also oversees ethical issues and ensures the effectiveness of ESG risk management and internal control systems as well as incorporating ESG risk factors into the decision-making processes. Implementing ESG strategies, assessment and prioritization of material ESG issues and ESG-related risks The Executive Committee oversees and reviews corporate governance practices, including policies and reports to uphold the high standards and compliance of the Group. The committee also monitors the progress of the Group’s ESG objectives and performance, and reviews the impact of the ESG initiatives on the economy, environment and stakeholders. The committee approves the annual Sustainability Report, pinpoints areas for enhancement in the Group’s ESG matters, and provides recommendations where appropriate. Overseeing the execution of the Group’s ESG strategies throughout business operations Chaired by the Deputy Managing Director and comprised of senior managers from key divisions, the SSC assists in monitoring global sustainability trends, identifying and managing material ESG issues, and providing recommendations for continued improvements. The SSC is also responsible for the development, tracking, and reporting on ESG work plan, performance, objectives and targets. It engages with stakeholders regularly to evaluate their feedback and annually reports the outcome to the management. Every three years, the SSC reviews the stakeholder engagement process to maintain effective communication with stakeholders. In addition, the SSC reviews the Group’s ESG-related policies regularly and the Sustainability Report annually. The SSC organizes meetings regularly and the chairman of the SSC maintains close communication with the Board and the Executive Committee to report ESG issues where necessary. The Board Executive Committee Sustainability Steering Committee (SSC) Sun Hung Kai Properties Limited | Sustainability Report 2023/24 < 5 > 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