SHKP Sustainability Report 2024/25

13 Sun Hung Kai Properties Limited | Sustainability Report 2024/25 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 Supply Chain Management Oversight and Responsibilities The Executive Committee and SSC oversees corporate governance practices, including supply chain management The procurement teams of the Group and its subsidiaries enforce due diligence protocols, including mandatory sustainability criteria and risk assessments for suppliers Potential Risks and Opportunities Increase costs of raw materials and services from supply chain disruptions due to social or environmental factors Reduce operational risks and costs through a robust supply chain management system Our Strategies and Action Plans Employ multiple sourcing strategies to avoid overreliance on single source Standardize supplier selection and retention processes, performance assessments and supply chain risk management system based on the Sustainable Supply Chain Management Guideline Identify critical suppliers and assess their sustainability performance via due diligence questionnaire in Sanfield’s operations Metrics and Targets Number of total and local suppliers and amount of procurement with environmental considerations Number of critical suppliers and number of suppliers and contractors with high sustainability risks Our Performance in FY2024/25 ~ 99% of our suppliers were locally based and ~ 46% of our total procurement with environmental considerations Sanfield identified 18 of its 406 suppliers and contractors as Tier-1 critical, with no suppliers or contractors assessed as high sustainability risks Relevant Material Topics Supply Chain Management Relevant SDGs Data Privacy and Cybersecurity Oversight and Responsibilities The Board, via the Executive Committee, oversees the Group’s cybersecurity strategy, and identifies, monitors, mitigates and manages cybersecurity risks The Group’s IT Governance Steering Committee assists the Executive Committee in overseeing information security and cybersecurity strategy. It works closely with the IT Department to integrate security into our operations Potential Risks and Opportunities Suffer reputational damage and incur negative financial consequences from cyber-attacks and data breaches Increase customer trust and loyalty through strong cybersecurity practices Our Strategies and Action Plans Implement ISO 27001-certified Information Security Management systems Conduct regular external vulnerability assessments and penetration-testing while maintaining a comprehensive IT security incident response plan with backup strategy Conduct regular training and phishing simulations to raise cybersecurity awareness Metrics and Targets Number of business units with ISO 27001 Information Security Management certification Number of data breach cases and complaints regarding customer privacy breaches or data loss Our Performance in FY2024/25 The Group and Hong Yip earned ISO 27001 Information Security Management certification No substantiated complaints and cases regarding customer privacy breaches or data loss Relevant Material Topics Data Privacy and Cybersecurity Relevant SDGs Well-being, Health and Safety Oversight and Responsibilities The Board, via the Executive Committee and SSC, oversees the Group’s occupational health and safety (OHS) strategy, plan and performance The Occupational Health and Safety Committee of our property management and construction subsidiaries manages OHS risks, initiatives, targets and performance The Internal Affairs Department ensures employee well-being by providing training and support programmes Potential Risks and Opportunities Increase work-related injuries or fatalities, and project delays due to lost workdays from poor OHS management systems Increase productivity with improved employee well-being and reduce employees’ health insurance costs in better working environments Our Strategies and Action Plans Implement ISO 45001-certified OHS Management Systems in our operations and promote workplace well-being Conduct regular internal and external safety inspections, assessments and audits to minimize OHS risks Establish OHS targets for our employees, contractors and subcontractors Metrics and Targets Increase the number of ISO 45001-certified sites Achieve zero fatal accidents, fewer than 0.5 serious accidents and 7.0 reportable accidents per 1,000 workers Our Performance in FY2024/25 ~ 8.6% of our managed properties and construction sites in the reporting scope are ISO 45001-certified Zero cases of fatalities among our construction division employees and contractors with an accident rate of 10.0 per 1,000 workers Relevant Material Topics Well-being, Health and Safety Relevant SDGs For details on our sustainability strategies, management and performance regarding ESG material topics, please refer to Appendix VI and each section of our Sustainability Report 2024/25. For other risk factors, please refer to the Corporate Governance Report section of our Annual Report 2024/25.