Sustainability Report 2023/24

Implementing Effective Tendering in Procurement Our property management subsidiaries require all suppliers and contractors to sign an Environmental, Occupational Health and Safety Commitment and adhere to our environment and energy- related policies. Hong Yip’s tendering system ePro enables suppliers to receive invitations and submit tenders online. All registering vendors must complete a self-assessment that covers managerial competency, financial conditions, labour compliance and safety to identify and manage ESG risks in the supply chain. Every year, we assess vendors’ profiles and performance, which are scored and used as indicators of their viability for tenders. Those not meeting expectations may receive verbal or written warnings or, in severe cases, be removed from the list of approved vendors. Our vendor complaint management system closely monitors vendor performance and quality. For sizeable projects, vendors must submit method statements, work programmes and delivery schedules for approval. This year, Hong Yip introduced an ESG performance self- assessment tool for approved vendors, which shared up-to- date ESG trends and offered ideas for future engagement. Respondents earned bonus assessment marks. Monitoring Suppliers’ ESG Compliance Royal brand hotels monitor the compliance status of suppliers regularly. To review their ESG standards, they are required to complete the Supplier ESG Performance Evaluation Questionnaire annually. New suppliers are required to self- declare their compliance with the Supplier Code of Conduct. During the reporting year, Royal Park Hotel conducted an evaluation questionnaire with over 200 suppliers, none of them were considered as high risk. We prioritize food safety to ensure the health and well-being of our hotel guests. To preserve the highest quality of processing and transport, suppliers must sign Food Safety Declaration Forms and Health Declaration Forms, and adhere to our strict safety and quality standards. During initial qualification checks, these suppliers must submit business registration documents, food factory licenses, laboratory tests for products, food health and safety certificates as well as food-grade certificates. Throughout the contract period, we regularly evaluate suppliers’ product quality, delivery timeliness and aftersales service, via questionnaires, laboratory tests, pre-delivery quality checks and end-product quality surveys. Annual audits and on-site inspections cover personal hygiene, food processing, storage, waste management, site safety, food safety certification, chemical storage, equipment cleaning and pest control. Extra scrutiny is placed on handlers of high-risk products, such as ready-to-eat food and fresh seafood. Should non-compliance arise, immediate rectification is followed by a re-audit. During the reporting year, four hotels conducted food safety audits and 100% of our active suppliers met our requirements. No suppliers failed nor were suspended. Property Management Hotel Operations Sun Hung Kai Properties Limited | Sustainability Report 2023/24 < 75 > 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