SHKP Sustainability Report 2024/25

Paragraph Description Reference (Page number) and Remarks 25 (a) the processes and related policies the entity uses to identify, assess, prioritize and monitor climate-related risks, including information about: (i) the inputs and parameters the entity uses; (ii) whether and how the entity uses climate-related scenario analysis to inform its identification of climate-related risks; (iii) how the entity assesses the nature, likelihood and magnitude of the effects of those; (iv) whether and how the entity prioritizes climate-related risks relative to other types of risk; (v) how the entity monitors climate-related risks; and (vi)whether and how the entity has changed the processes it uses compared with the previous reporting period; Climate Change Policy; Environmental Policy; Value Created for the Environment (15-39) Please refer to the Corporate Governance Report section of our Annual Report 2024/25. (b) the processes the entity uses to identify, assess, prioritize and monitor climate-related opportunities, including information about whether and how the entity uses climate-related scenario analysis to inform its identification of climate-related opportunities; and Value Created for the Environment (15-39) (c) the extent to which, and how, the processes for identifying, assessing, prioritizing and monitoring climate-related risks and opportunities are integrated into and inform the entity’s overall risk management process. Value Created for the Environment (15-39) Metrics and Targets 27 The objective of climate-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 climate-related risks and opportunities, including progress towards any climate-related targets it has set, and any targets it is required to meet by law or regulation. 28 To achieve this objective, an entity shall disclose: (a) information relevant to the cross-industry metric categories; Please see the reference for paragraph 29. (b) industry-based metrics that are associated with particular business models, activities or other common features that characterize participation in an industry; and Please see the reference for paragraph 32. (c) targets set by the entity, and any targets it is required to meet by law or regulation, to mitigate or adapt to climate- related risks or take advantage of climate-related opportunities, including metrics used by the governance body or management to measure progress towards these targets . Please see the reference for paragraphs 33-36. Climate-related Metrics 29 An entity shall disclose information relevant to the cross-industry metric categories of: (a) greenhouse gases – the entity shall: (i) disclose its absolute gross greenhouse gas emissions generated during the reporting period, expressed as metric tonnes of CO 2 equivalent, classified as: (1) Scope 1 greenhouse gas emissions; (2) Scope 2 greenhouse gas emissions; and (3) Scope 3 greenhouse gas emissions; (ii) measure its greenhouse gas emissions in accordance with the Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (2004) unless required by a jurisdictional authority or an exchange on which the entity is listed to use a different method for measuring its greenhouse gas emissions; Appendix III – Performance Tables (86-97); Appendix V – GRI Content Index (99-101) The Group’s methodology for calculating GHG emissions is in accordance with the Greenhouse Gas (GHG)Protocol. (iii) disclose the approach it uses to measure its greenhouse gas emissions including: (1) the measurement approach, inputs and assumptions the entity uses to measure its greenhouse gas emissions; (2) the reason why the entity has chosen the measurement approach, inputs and assumptions it uses to measure its greenhouse gas emissions; and (3) any changes the entity made to the measurement approach, inputs and assumptions during the reporting period and the reasons for those changes; Our Reporting Approach (1); Appendix III – Performance Tables (86-97); Appendix V – GRI Content Index (99-101) The Group adopts the operational control approach, as recommended by the GHG Protocol, to measure and account for its greenhouse gas emissions. (iv) for Scope 1 and Scope 2 greenhouse gas emissions disclosed, disaggregate emissions between: (1) the consolidated accounting group; and (2) other investees excluded from paragraph 29(a)(iv)(1); Appendix III – Performance Tables (86-97) (v) for Scope 2 greenhouse gas emissions disclosed from paragraph 29(a)(i)(2), disclose its location-based Scope 2 greenhouse gas emissions, and provide information about any contractual instruments that is necessary to inform users’ understanding of the entity’s Scope 2 greenhouse gas emissions; and Appendix III – Performance Tables (86-97) (vi) for Scope 3 greenhouse gas emissions disclosed in accordance with paragraph 29(a)(i)(3), disclose: (1) the categories included within the entity’s measure of Scope 3 greenhouse gas emissions, in accordance with the Scope 3 categories described in the Greenhouse Gas Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard (2011); and (2) additional information about the entity’s Category 15 greenhouse gas emissions or those associated with its investments (financed emissions), if the entity’s activities include asset management, commercial banking or insurance; Appendix III – Performance Tables (86-97) (b) climate-related transition risks - the amount and percentage of assets or business activities vulnerable to climate- related transition risks; Our current study covers selected assets and businesses, we will explore the feasibility of expanding the scope in the future. (c) climate-related physical risks - the amount and percentage of assets or business activities vulnerable to climate- related physical risks; Our current study covers selected assets and businesses, we will explore the feasibility of expanding the scope in the future. (d) climate-related opportunities - the amount and percentage of assets or business activities aligned with climate- related opportunities; Value Created for the Environment (15-39) (e) capital deployment - the amount of capital expenditure, financing or investment deployed towards climate-related risks and opportunities; Value Created for the Environment (15-39) (f) internal carbon prices - the entity shall disclose: (i) an explanation of whether and how the entity is applying a carbon price in decision-making; and (ii) the price for each metric tonne of greenhouse gas emissions the entity uses to assess the costs of its greenhouse gas emissions; and Internal carbon pricing is currently not a part of our decision- making. However, a pilot study has been launched to explore the adoption of an internal carbon price, using data projected by the Network for Greening the Financial System (NGFS) to evaluate its reasonableness. Paragraph Description Reference (Page number) and Remarks 29 (g) remuneration - the entity shall disclose: (i) a description of whether and how climate-related considerations are factored into executive remuneration; and (ii) the percentage of executive management remuneration recognized in the current period that is linked to climate-related considerations. In 2024, we introduced ESG and climate-related KPIs for the senior manager in the ESG-focused role as a first step toward strengthening accountability. We will explore the feasibility of linking executive remuneration to climate- related metrics. 32 An entity shall disclose industry-based metrics that are associated with one or more particular business models, activities or other common features that characterize participation in an industry. In determining the industry-based metrics that the entity discloses, the entity shall refer to and consider the applicability of the industry-based metrics associated with disclosure topics described in the Industry-based Guidance on Implementing IFRS S2. Appendix VIII – SASB Content Index (105) Climate-related Targets 33 An entity shall disclose the quantitative and qualitative climate-related targets it has set to monitor progress towards achieving its strategic goals, and any targets it is required to meet by law or regulation, including any greenhouse gas emissions targets. For each target, the entity shall disclose: (a) the metric used to set the target; Value Created for the Environment (15-39) (b) the objective of the target; Value Created for the Environment (15-39) (c) the part of the entity to which the target applies; Value Created for the Environment (15-39) (d) the period over which the target applies; Value Created for the Environment (15-39) (e) the base period fromwhich progress is measured; Value Created for the Environment (15-39) (f) any milestones and interim targets; Value Created for the Environment (15-39) (g) if the target is quantitative, whether it is an absolute target or an intensity target; and Value Created for the Environment (15-39) (h) how the latest international agreement on climate change, including jurisdictional commitments that arise from that agreement, has informed the target. Value Created for the Environment (15-39) 34 An entity shall disclose information about its approach to setting and reviewing each target, and how it monitors progress against each target, including: (a) whether the target and the methodology for setting the target has been validated by a third party; Value Created for the Environment (15-39) We have set 10-year targets on GHG emissions and energy consumption for our properties. Having already met our FY2029/30 GHG emissions target, we have set a new goal for the future. As we move forward, we will explore the feasibility of having our targets validated by a third party. (b) the entity’s processes for reviewing the target; (c) the metrics used to monitor progress towards reaching the target; and (d) any revisions to the target and an explanation for those revisions. 35 An entity shall disclose information about its performance against each climate-related target and an analysis of trends or changes in the entity’s performance. Value Created for the Environment (15-39) 36 For each greenhouse gas emissions target disclosed, an entity shall disclose: (a) which greenhouse gases are covered by the target; Value Created for the Environment (15-39) Carbon dioxide (CO 2 ), methane (CH 4 ), nitrous oxide (N 2 O) and hydroflurocarbons (HFCs) are included in our GHG calculations. (b) whether Scope 1, Scope 2 or Scope 3 greenhouse gas emissions are covered by the target; and Value Created for the Environment (15-39) (c) whether the target is a gross greenhouse gas emissions target or net greenhouse gas emissions target. If the entity discloses a net greenhouse gas emissions target, the entity is also required to separately disclose its associated gross greenhouse gas emissions target; Value Created for the Environment (15-39) Our target is a gross GHG target. (d) whether the target was derived using a sectoral decarbonization approach; and Currently, our established target is not derived using a sectoral decarbonization approach. (e) the entity’s planned use of carbon credits to offset greenhouse gas emissions to achieve any net greenhouse gas emissions target. In explaining its planned use of carbon credits the entity shall disclose information including: (i) the extent to which, and how, achieving any net greenhouse gas emissions target relies on the use of carbon credits; (ii) which third-party scheme(s) will verify or certify the carbon credits; (iii) the type of carbon credit, including whether the underlying offset will be nature-based or based on technological carbon removals, and whether the underlying offset is achieved through carbon reduction or removal; and (iv) any other factors necessary for users of general purpose financial reports to understand the credibility and integrity of the carbon credits the entity plans to use. We will explore the feasibility of purchasing carbon credits to offset GHG emissions in our operations. 104 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 VII Sun Hung Kai Properties Limited | Sustainability Report 2024/25