SHKP Sustainability Report 2024/25

Paragraph Description Reference (Page number) and Remarks Governance 26 The objective of sustainability-related financial disclosures on governance is to enable users of general purpose financial reports to understand the governance processes, controls and procedures an entity uses to monitor, manage and oversee sustainability-related risks and opportunities. 27 To achieve this objective, an entity shall disclose information about: (a) the governance body(s) or individual(s) responsible for oversight of sustainability-related risks and opportunities. Specifically, the entity shall identify that body(s) or individual(s) and disclose information about: (i) how responsibilities for sustainability-related risks and opportunities are reflected in the terms of reference, mandates, role descriptions and other related policies applicable to that body(s) or individual(s); (ii) how the body(s) or individual(s) determines whether appropriate skills and competencies are available or will be developed to oversee strategies designed to respond to sustainability-related risks and opportunities; (iii)how and how often the body(s) or individual(s) is informed about sustainability-related risks and opportunities; (iv)how the body(s) or individual(s) takes into account sustainability-related risks and opportunities when overseeing the entity’s strategy, its decisions on major transactions and its risk management processes and related policies, including whether the body(s) or individual(s) has considered trade-offs associated with those risks and opportunities; and (v) how the body(s) or individual(s) oversees the setting of targets related to sustainability-related risks and opportunities, and monitors progress towards those targets, including whether and how related performance metrics are included in remuneration policies. Our Approach to Sustainability (5-14) ; Value Created for the Environment (15-39); Appendix V – GRI Content Index (99-101) (b) management’s role in the governance processes, controls and procedures used to monitor, manage and oversee sustainability-related risks and opportunities, including information about: (i) whether the role is delegated to a specific management-level position or management-level committee and how oversight is exercised over that position or committee; and (ii) whether management uses controls and procedures to support the oversight of sustainability-related risks and opportunities and, if so, how these controls and procedures are integrated with other internal functions. Our Approach to Sustainability (5-14) Strategy 28 The objective of sustainability-related financial disclosures on strategy is to enable users of general purpose financial reports to understand an entity’s strategy for managing sustainability-related risks and opportunities. 29 Specifically, an entity shall disclose information to enable users of general purpose financial reports to understand: (a) the sustainability-related risks and opportunities that could reasonably be expected to affect the entity’s prospects; Please see the reference for paragraph 30. (b) the current and anticipated effects of those sustainability-related risks and opportunities on the entity’s business model and value chain; Please see the reference for paragraph 32. (c) the effects of those sustainability-related risks and opportunities on the entity’s strategy and decision-making; Please see the reference for paragraph 33. (d) the effects of those sustainability-related risks and opportunities on the entity’s financial position, financial performance and cash flows for the reporting period, and their anticipated effects on the entity’s financial position, financial performance and cash flows over the short, medium and long term, taking into consideration how those sustainability-related risks and opportunities have been factored into the entity’s financial planning; and Please see the reference for paragraphs 34 and 35. (e) the resilience of the entity’s strategy and its business model to those sustainability-related risks. Please see the reference for paragraph 41. Sustainability-related Risks and Opportunities 30 An entity shall disclose information that enables users of general purpose financial reports to understand the sustainability-related risks and opportunities that could reasonably be expected to affect the entity’s prospects. Specifically, the entity shall: (a) describe sustainability-related risks and opportunities that could reasonably be expected to affect the entity’s prospects; Our Approach to Sustainability (5-14) ; Value Created for the Environment (15-39) At present, our assessment of sustainability-related risks and opportunities does not incorporate time horizon considerations, except for climate-related factors. We will continue to explore methodologies in assessing our sustainability-related risks and opportunities under different time horizons. (b) specify the time horizons—short, medium or long term—over which the effects of each of those sustainability- related risks and opportunities could reasonably be expected to occur; and (c) explain how the entity defines ‘short term’, ‘medium term’ and ‘long term’ and how these definitions are linked to the planning horizons used by the entity for strategic decision-making. Business Model and Value Chain 32 An entity shall disclose information that enables users of general purpose financial reports to understand the current and anticipated effects of sustainability-related risks and opportunities on the entity’s business model and value chain. Specifically, the entity shall disclose: (a) a description of the current and anticipated effects of sustainability-related risks and opportunities on the entity’s business model and value chain; and Our Approach to Sustainability (5-14) (b) a description of where in the entity’s business model and value chain sustainability-related risks and opportunities are concentrate. Strategy and Decision-making 33 An entity shall disclose information that enables users of general purpose financial reports to understand the effects of sustainability-related risks and opportunities on its strategy and decision-making. Specifically, the entity shall disclose information about: (a) how the entity has responded to, and plans to respond to, sustainability-related risks and opportunities in its strategy and decision-making; Our Approach to Sustainability (5-14) (b) the progress against plans the entity has disclosed in previous reporting periods, including quantitative and qualitative information; and Our Approach to Sustainability (5-14) (c) trade-offs between sustainability-related risks and opportunities that the entity considered. Our Approach to Sustainability (5-14) Our stakeholder engagement process assessed current and potential sustainability risks and opportunities, evaluating them through the lenses of impact materiality and financial materiality. Material risks and opportunities were carefully considered. The progress made in identifying key trade-offs informs the Group’s strategic decisions. Financial Position, Financial Performance and Cash Flows 34 An entity shall disclose information that enables users of general purpose financial reports to understand: (a) the effects of sustainability-related risks and opportunities on the entity’s financial position, financial performance and cash flows for the reporting period; and Please see the reference for paragraph 35. (b) the anticipated effects of sustainability-related risks and opportunities on the entity’s financial position, financial performance and cash flows over the short, medium and long term, taking into consideration how sustainability- related risks and opportunities are included in the entity’s financial planning. Please see the reference for paragraph 35. Paragraph Description Reference (Page number) and Remarks 35 Specifically, an entity shall disclose quantitative and qualitative information about: (a) how sustainability-related risks and opportunities have affected its financial position, financial performance and cash flows for the reporting period; We have preliminarily identified sustainability-related risks and opportunities and disclosed their potential financial impact in the Managing ESG Risks and Opportunities in Our Operations section under Our Approach to Sustainability. In addition, we have disclosed the anticipated financial effects for the climate-related risks and opportunities. Please refer to the Value Created for the Environment section for more information. We are currently examining frameworks and analytical approaches to strengthen our identification and measurement of potential financial impacts arising from sustainability-related risks and opportunities. In the future, we will review the feasibility of disclosing more information on the financial implications of our identified sustainability- related risks and opportunities over different timeframe. (b) the sustainability-related risks and opportunities identified in paragraph 35(a) for which there is a significant risk of a material adjustment within the next annual reporting period to the carrying amounts of assets and liabilities reported in the related financial statements; (c) how the entity expects its financial position to change over the short, medium and long term, given its strategy to manage sustainability-related risks and opportunities, taking into consideration: (i) its investment and disposal plans, including plans the entity is not contractually committed to; and (ii) its planned sources of funding to implement its strategy; and (d) how the entity expects its financial performance and cash flows to change over the short, medium and long term, given its strategy to manage sustainability-related risks and opportunities. Resilience 41 An entity shall disclose information that enables users of general purpose financial reports to understand its capacity to adjust to the uncertainties arising from sustainability-related risks. An entity shall disclose a qualitative and, if applicable, quantitative assessment of the resilience of its strategy and business model in relation to its sustainability-related risks, including information about how the assessment was carried out and its time horizon. When providing quantitative information, an entity may disclose a single amount or a range. Our Approach to Sustainability (5-14); Value Created for the Environment (15-39) Risk Management 43 The objective of sustainability-related financial disclosures on risk management is to enable users of general purpose financial reports: (a) to understand an entity’s processes to identify, assess, prioritize and monitor sustainability-related risks and opportunities, including whether and how those processes are integrated into and inform the entity’s overall risk management process; and (b) to assess the entity’s overall risk profile and its overall risk management process. 44 To achieve this objective, an entity shall disclose information about: (a) the processes and related policies the entity uses to identify, assess, prioritize and monitor sustainability-related risks, including information about: (i) the inputs and parameters the entity uses; (ii) whether and how the entity uses scenario analysis to inform its identification of sustainability-related risks; (iii) how the entity assesses the nature, likelihood and magnitude of the effects of those risks; (iv) whether and how the entity prioritizes sustainability-related risks relative to other types of risk; (v) how the entity monitors sustainability-related risks; and (vi) whether and how the entity has changed the processes it uses compared with the previous reporting period; Our Approach to Sustainability (5-14); Value Created for the Environment (15-39) At present, scenario analysis is only used to support the analysis of climate-related risks and opportunities. Going forward, we will explore the use of scenario analysis to analyze other sustainability-related risks and opportunities. (b) the processes the entity uses to identify, assess, prioritize and monitor sustainability-related opportunities; and (c) the extent to which, and how, the processes for identifying, assessing, prioritizing and monitoring sustainability- related risks and opportunities are integrated into and inform the entity’s overall risk management process. Metrics and Targets 45 The objective of sustainability-related financial disclosures on metrics and targets is to enable users of general purpose financial reports to understand an entity’s performance in relation to its sustainability-related risks and opportunities, including progress towards any targets the entity has set, and any targets it is required to meet by law or regulation. 46 An entity shall disclose, for each sustainability-related risk and opportunity that could reasonably be expected to affect the entity’s prospects: (a) metrics required by an applicable IFRS Sustainability Disclosure Standard; and Appendix VIII – SASB Content Index (105) (b) metrics the entity uses to measure and monitor: (i) that sustainability-related risk or opportunity; and (ii) its performance in relation to that sustainability-related risk or opportunity, including progress towards any targets the entity has set, and any targets it is required to meet by law or regulation. Our Approach to Sustainability (5-14); Appendix III – Performance Tables (86-97) More metrics are disclosed under individual chapters. Please refer to the respective chapters for more information. 48 Metrics disclosed by an entity shall include metrics associated with particular business models, activities or other common features that characterize participation in an industry. Appendix VIII – SASB Content Index (105) 49 If an entity discloses a metric taken from a source other than IFRS Sustainability Disclosure Standards, the entity shall identify the source and the metric taken. Our Reporting Approach (1) 50 If a metric has been developed by an entity, the entity shall disclose information about: (a) how the metric is defined, including whether it is derived by adjusting a metric taken from a source other than IFRS Sustainability Disclosure Standards and, if so, which source and how the metric disclosed by the entity differs from the metric specified in that source; Appendix III – Performance Tables (86-97); Appendix V – GRI Content Index (99-101); Appendix X – Independent Assurance Opinion Statement (108-109) We referenced various disclosure standards, including the HKEx ESG Code, GRI and SASB, to measure and disclosure relevant metrics. Metrics that have been verified by a third party are specified. For details, please refer to Appendix X – Independent Assurance Opinion Statement . Meanwhile, calculation methodologies are also found in Appendix III – Performance Tables and Appendix V – GRI Content Index . (b) whether the metric is an absolute measure, a measure expressed in relation to another metric or a qualitative measure; (c) whether the metric is validated by a third party and, if so, which party; and (d) the method used to calculate the metric and the inputs to the calculation, including the limitations of the method used and the significant assumptions made. 51 An entity shall disclose information about the targets it has set to monitor progress towards achieving its strategic goals, and any targets it is required to meet by law or regulation. For each target, the entity shall disclose: (a) the metric used to set the target and to monitor progress towards reaching the target; Our Approach to Sustainability (5-14) (b) the specific quantitative or qualitative target the entity has set or is required to meet; (c) the period over which the target applies; (d) the base period fromwhich progress is measured; (e) any milestones and interim targets; (f) performance against each target and an analysis of trends or changes in the entity’s performance; and (g) any revisions to the target and an explanation for those revisions. Appendix VI – IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information Content Index 102 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 Appendix VI Sun Hung Kai Properties Limited | Sustainability Report 2024/25