Sustainability Report 2023/24

Managing the Supply Chain We encourage suppliers to adopt environmental management that is in line with international standards. Sanfield’s executive management oversees the implementation of its Sustainable Supply Chain Management Guideline and the ESG programme for suppliers and contractors. Engaging and Communicating To mitigate potential disruptions, we proactively identify and assess environmental and social risks throughout our supply chain. Natural disasters, extreme weather, epidemics, safety incidents and labour disputes can compromise the stability of our supplies, increase the cost of materials and services, and consequently impact our supply chain and operations. To mitigate those risks, we prioritize two-way and transparent communication with our suppliers, closely monitor market developments and actively seek alternative sources that offer stable and reasonably priced supplies. Our Supplier Code of Conduct communicates our expectations regarding business ethics, environmental protection, occupational health and safety, human rights and equal opportunities, labour practices, and confidential information and privacy. We regularly evaluate suppliers and contractors’ performance and closely monitor their compliance with our requirements. Annual sustainability-related assessments evaluate their performance. Those who violate laws and regulations, fail to meet contract requirements, engage in misconduct, or fail to achieve satisfactory results may be downgraded or delisted. Addressing Environmental Concerns with Industry Peers We work closely with industry partners to address environmental concerns in our supply chain. Kai Shing participated in the 2023 Property Management Innovation and Development Forum to discuss the importance of green management and using technology to reduce energy and carbon emissions. We arranged property management professionals from mainland China to visit our ICC and New Town Plaza. During the visit, we shared our cutting-edge artificial intelligence (AI) management and carbon reduction measures, fostering an exchange of management experience and practices. Kai Shing attends the 2023 Property Management Innovation and Development Forum in Shenzhen Property management professionals from the mainland visit New Town Plaza Providing Training We provide ESG-related training to enhance suppliers’, contractors’ and subcontractors’ awareness of occupational health and safety, environmental management and anti-corruption. We also share the best practice in their industry as benchmarks for continuous improvement. All full-time and part-time employees, suppliers and contractors undertake quality assurance training at least once every year. We also provide training to our procurement team, equipping them with knowledge on supplier ESG programmes to enhance our internal supply chain management capacity. Sun Hung Kai Properties Limited | Sustainability Report 2023/24 < 73 > 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