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 Physical Risk Scenarios and Parameters Transition Risk Scenarios and Parameters 29 Sun Hung Kai Properties Limited | Sustainability Report 2024/25 Timeframe 2030 to 2050 Scenario Turquoise Brown IPCC Scenario RCP 2.6 RCP 8.5 Global Mean Temperature Rise Above Pre-Industrial Levels By 2100 <2°C >3°C Scenario Description A low GHG emissions scenario consistent with strong climate policy action would likely result in less frequent and less severe extreme weather events, along with minimal shifts in climate patterns A high-emissions trajectory with limited climate policy intervention is likely to lead to more frequent and severe extreme weather events, along with significant shifts in climate patterns Risks Assessed 7 Acute risk: Rainfall flood River flood Storm surge Typhoon Chronic risk: Drought Extreme heat Landslide Sea level rise Snow melt Wildfire 7 For the physical risk assessment, a range of models were applied to enhance predictive accuracy. These include observational data, HEC and Flo2D models, NWP models, and the LARS-WG model for precipitation and flood risk assessment; global mean sea level projections and region-growing-based analysis for sea level rise assessment; observational data, NWP models, and the STSM model for temperature-related assessments; as well as the Intensel AI-based models for typhoon risk assessment. Physical Risk We conducted an asset-level quantitative climate-related physical risk assessment on eight selected projects within our Hong Kong and mainland portfolio, chosen based on financial materiality, geographic distribution and strategic relevance. To explore a range of possible climate futures, the analysis applied two IPCC climate scenarios – RCP 2.6 and RCP 8.5, representing low- and high-emissions pathways respectively to assess potential impacts by 2030 and 2050. The assessment applied climate modelling methodologies that integrate historical records and future projections of climate variables, such as sea-level rise, extreme precipitation, wind speed and temperature, along with geospatial analysis involving satellite imagery, topography, vegetation and buildings’ footprints. Through evaluating the likelihood and severity of physical risks to our Hong Kong and Shanghai assets, we identified the material physical risks relevant to the Group. As with all model-based assessments, a degree of uncertainty exists due to assumptions required in estimating the future frequency, intensity and location of climate events. Nonetheless, adopting this science-based and data-driven approach enables us to better anticipate physical climate risks and develop more informed resilience strategies. The assessment results, summarized at city-level, indicate that six types of physical risks were considered negligible and are therefore not presented below. The remaining four risks, assessed to pose low to medium levels of impact under the selected climate scenarios, are illustrated in the following table. A supplementary table is provided to outline their potential business and financial implications, along with the Group’s corresponding resilience strategies. The tables below summarize the scenarios selected and the timeframes used in our assessment: Timeframe 2030 to 2050 Scenario Turquoise Brown IPCC Scenario SSP 1-2.6 SSP 5-8.5 IEA Scenario Sustainable Development Scenario (SDS) Stated Policies Scenario (STEPS) NGFS Scenario Orderly pathways Hot house world pathways Global Mean Temperature Rise Above Pre-Industrial Levels By 2100 <2°C >3°C Scenario Description It represents a future with strong climate action, rapid shift to renewables, clear net-zero targets, and wide corporate and policy alignment on sustainability It represents a fossil fuel-driven future with weak climate policies, slow climate action, profit-first business models, and limited public engagement on sustainability Risks Assessed Technology risk Policy and Legal risk Reputation and Market risk