SHKP 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 27 Sun Hung Kai Properties Limited | Sustainability Report 2024/25 Climate-related Management The Group remains committed to proactively managing climate-related risks and capturing related opportunities to ensure the long-term resilience and sustainable growth of our business. Recognizing the profound impact of climate change on the real estate sector, we continue to intensify our efforts to integrate climate considerations into our governance, strategy and risk management frameworks. Since FY2020/21, we have disclosed climate- related information with reference to the TCFD framework. In response to evolving global standards, we have further enhanced our disclosures by referencing the ISSB IFRS S2 Climate-related Disclosures. This approach aligns with the Hong Kong Stock Exchange’s latest ESG Code Part D, which requires strengthened climate-related disclosures in line with IFRS S2. We acknowledge the evolving disclosure requirements and we will continue to enhance and align with emerging best practices while seeking to meet stakeholders’ expectations. For more details, please refer to the content index in Appendix VII . Governance Board of Directors The Board of Directors holds ultimate accountability for the Group’s ESG strategy and performance. It leads and oversees the management of ESG issues, including climate- related risks and opportunities, as part of the Group’s broader strategic agenda. The Board, via the Executive Committee, is involved in embedding ESG considerations into the Group’s long-term development plan. It ensures the establishment and effectiveness of ESG-related risk management and internal control systems, whereby ESG risk elements, including climate- related factors, are assessed and integrated into key decision-making processes. Audit and Risk Management Committee The Audit and Risk Management Committee monitors the evolving ESG landscape and ensures that the Group addresses emerging risks in a timely and effective manner. It oversees climate-related risks, including physical and transition risks, and evaluates their implications on business operations. This ensures the Group maintains a clear understanding of potential risk exposures, and appropriate strategies are considered for mitigation. Crisis Operation Management Committee The Crisis Operation Management Committee, led by two Executive Directors, oversees responses to critical incidents across business units and subsidiaries. It regularly reviews relevant climate-related risks and opportunities and assesses the Group’s resilience to extreme weather events. Capacity Building Regarding Climate Change The Board and senior management should possess the skills and competencies required to oversee strategies addressing climate- related issues. To strengthen their knowledge and ensure our leadership remains current with global developments, we engaged an independent consultant during the reporting year to produce two training videos. The videos cover key topics, such as major global climate events, evolving disclosure standards, climate risk management practices, corporate strategies and best practices adopted by leading international companies. The training materials will be accessible on the Company’s intranet and available to Board members, senior management and all employees. We encourage everyone in the company to take this e-learning and enhance their understanding of climate- related risks and opportunities. Executive Committee The Executive Committee implements the Group’s ESG strategies and conducts regular assessments and prioritization of material issues, including climate-related risks and opportunities. It tracks and monitors the Group’s ESG performance and progress against defined targets. The Committee also reviews ESG-related programmes by evaluating their impacts on the economy, environment and stakeholders. The Board and Executive Committee are kept well informed of climate-related risks and opportunities that may impact the Group. These risks and opportunities, mentioned in the Sustainability Report, are reviewed and endorsed by the Executive Committee annually prior to its publication. Sustainability Steering Committee The Sustainability Steering Committee manages sustainability issues in daily operations. It regularly reviews key sustainability policies, including the Group’s Climate Change Policy. It also formulates, monitors and reports on environmental work plans, performances, and short- and long-term goals. Group Sustainability Policy Sets out the foundation for the Group’s overall sustainability strategy, ensuring sustainability factors are considered in decision-making throughout our business operations Climate Change Policy Details our strategy and measures to mitigate the impacts of climate change, whilst increasing the adaptability and resilience against climate change Environmental Policy Provides a framework to guide our operations whilst maximizing protection of the environment, including aspects in energy, biodiversity and waste management Sustainable Building Policy Guides our development of low-carbon, climate-resilient properties, and focuses on users’ wellness Our Sustainability and Climate-change-related Policies The Sustainability Steering Committee is responsible for regularly reviewing these policies. Please refer to our website for the full versions and refer to the Transformative Sustainable Development Practices Through Innovation, Responsible Biodiversity Management and Accelerating Decarbonization Throughout Our Operations sections for further information.