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 31 Sun Hung Kai Properties Limited | Sustainability Report 2024/25 Description Increasing market and regulatory shift toward energy-efficient, low-carbon and renewable energy technologies Potential Impact More drive to invest in energy-efficient and low-carbon technologies Increased adoption of renewable energy sources, such as on-site solar panels Potential Financial Impact Increased capital expenditure on low-carbon product investment and renewable energy Increased cost of training for new technology Decreased operating costs owing to energy savings Example of Our Strategy Perform energy and carbon audits to pinpoint opportunities for energy-efficiency upgrades, including lifts, chillers and lighting systems Deploy smart building management and energy optimization systems to enhance operational efficiency Expand on-site renewable energy generation, such as the installation of solar power systems Promote green technology advancement through partnerships with universities and business partners Set up Sanfield Construction Innovations Limited to develop innovative, low-carbon construction solutions Partner with DBS Bank to launch the Sustainability-linked Supplier Payment Service (SPS) programme, providing financial incentives to suppliers for reducing carbon emissions Explore the purchase of RECs where appropriate Description Increasingly stringent building regulations and emerging carbon pricing policies Potential Impact Increased pressure to invest in low-carbon technologies and materials Increased need for employee knowledge of green building requirements Increased business uncertainty, arising from changing regulations and global trends Increased litigation risks for non-compliance with green building policies Potential Financial Impact Increased capital expenditure on low-carbon technologies and materials Increased capital investment for building retrofitting to meet building regulations Increased training costs for policy and regulation Increased expenditure on carbon price Increased fines owing to non-compliance Example of Our Strategy Fulfil green building commitments as stipulated in the Sustainable Building Policy Incorporate sustainable building features and low-carbon materials into building design Work towards our 10-year environmental targets through continuous tracking and improvement Engage in regulatory pilot schemes and industry seminars to provide feedback and stay informed on emerging laws, regulations and market trends Assess potential exposure to carbon pricing and explore strategies for achieving carbon neutrality Description Increasing market and consumer demand for green buildings and sustainable living Potential Impact Influenced the business direction by prioritizing investment in green buildings Increased drive to develop green buildings and sustainable services Increased need to train staff in green building practices to respond to buyer inquiries Reduced competitiveness if consumer demands are not met Potential Financial Impact Increased capital expenditure on green building development and low-carbon products Increased training costs for green building practices Increased revenue from rising sales and demand for green building rentals Example of Our Strategy Expand our portfolio of green-certified buildings while proactively managing environmental performance through ISO 14001 and ISO 50001 systems to mitigate climate, energy and carbon-related risks Strengthen partnerships with universities and business partners to drive innovation in green technologies Promote sustainable finance by linking environmental performance targets to financing arrangements Technology (Short/Medium/Long Term) Policy and Legal (Short/Medium/Long Term) Reputation and Market (Short/Medium/Long Term)