Sustainability Report 2023/24

A below industry average accident rate of 1 1.4 per 1,000 workers was recorded at construction sites 9 units of electric construction equipment were procured to replace diesel counterparts 1.6 million attendees were provided with health and safety training A Sustainability-linked Supplier Payment Services programme was launched Strategies and Management Aligned with SHKP’s Building Homes with Heart principle, our supply chain operates with transparency and resilience, and adheres to the principles of the UNSDGs. We actively promote ethical and sustainable practices, striving to create value for the community. Suppliers 1 , contractors 1 and subcontractors must adhere to all applicable environmental and social laws and regulations, including the Waste Disposal Ordinance, the Employment Ordinance and the Occupational Safety and Health Ordinance. They are encouraged to align their practices with the principles outlined in the United Nations Global Compact and the Universal Declaration of Human Rights. We forbid child and forced labour in our supply chain, and advocate a work environment that is inclusive and free from discrimination for all. Suppliers, contractors and subcontractors must adhere to our Supplier Code of Conduct. This sets out our expectations for legal compliance, governance, business ethics, environmental protection, occupational health and safety, human rights and equal opportunities, labour practices, and confidential information and privacy. Our Sustainable Building Policy and green procurement policy are integrated, with sustainable considerations taken into account when selecting suppliers and sourcing of building materials, equipment and office products. We urge our suppliers, contractors, subcontractors, joint ventures and other service providers to uphold the business ethics and quality requirements outlined in our Environmental Policy, Health and Safety Policy and Cybersecurity Policy. We have implemented a comprehensive supply chain management mechanism to ensure that our suppliers and contractors, both new and existing, meet our standards and comply with our requirements. The Group adopts a vertically integrated approach: • Standardizing supplier selection and retention processes, performance assessments, supply chain risk management and the development of evaluation systems Highlights of our Performance in FY2023/24 • Evaluating suppliers’ compliance, labour management and protection of human rights, particularly their ability to provide reasonable compensation and a safe working environment • Stipulating in tender documents that business partners, suppliers and contractors must adhere strictly to labour rights laws and regulations At SHKP, we are committed to supporting innovation and technology. We integrate technology elements into every aspect of our business, from construction to property management. We encourage a culture of innovation and creativity among our employees by providing them with resources and support to explore new ideas and solutions. In addition, we prioritize collaboration and knowledge-sharing through industry partnerships. This enables us to remain competitive and deliver products and services that exceed customer expectations. We have established safety operating guidelines and procedures that are tailored to the specific requirements and risks of construction works. These guidelines are regularly reviewed and updated to ensure their effectiveness. Our project and safety team liaises with contractors to establish protocols and standards. Regular safety inspections monitor compliance. We interact with suppliers and contractors via daily communication, regular assessments and meetings. Sanfield communicates with its contractors through various means, including kick-off meetings, pre-work meetings and safety training. Sanfield has continued to host the Building Information Modelling (BIM) and Design for Manufacture and Assembly (DfMA) summit for three consecutive years, providing a platform for our project managers, engineers, consultants, contractors and suppliers to exchange insights. In addition, Hong Yip updates and shares information via a vendor portal. 1 Our suppliers and contractors provide cleaning, security, laundry, landscaping, construction activities and E&M services, etc. Sun Hung Kai Properties Limited | Sustainability Report 2023/24 < 71 > 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