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 32 Sun Hung Kai Properties Limited | Sustainability Report 2024/25 Installation of flood barriers at Shanghai IFC ERT providing emergency first-aid responses Firefighters demonstrate fire rescue operations during the drill Risk Management We have integrated climate-related risks into our multidisciplinary ERM system, which is structured according to COSO principles. Within this system, risks are identified, assessed, prioritized and managed, then recorded in our risk register and evaluated alongside other key business risks using a consistent risk scoring methodology. Based on their potential impact and likelihood, the risks are prioritized and consolidated into a risk map that informs the development of response plans and control activities, ensuring alignment with the company’s defined risk appetite. As a result, the residual risk profile reflects risks that are considered manageable and maintained at a reasonable level. For more details, please refer to the Managing ESG Risks and Opportunities in Our Operations section. To enhance our understanding of potential exposures, the ERM process works alongside the scenario analysis mentioned above. While the scenario analysis provides forward-looking insights under various climate pathways, the ERM framework ensures these insights are translated into actionable oversight and controls across the Group. Together, these tools enable us to manage both physical and transition risks in a structured and informed manner. The following outlines how we respond to these risks across different stages. Physical Risk To mitigate and adapt impact posed by physical risks, the Group continues to implement a wide range of measures across its operations. These efforts remain consistent with our climate resilience strategy, ensuring our properties and stakeholders are well-protected against extreme weather conditions. We prioritize climate resilience in our building designs when launching new development projects. This includes the incorporation of typhoon-resistant structures and site-specific climate risk assessments. Where applicable, additional tests, such as wind tunnel tests, are carried out to ensure structural resilience. Within our managed properties, climate-resilient fixtures are installed to reduce the impact of extreme weather. These include: Floodgates, flood sensors and submersible pumps in low-lying and flood-prone areas Water baffles, typhoon nets, water cut-off sensors and IoT leak detectors in washrooms and machine rooms Remote-monitored sensors at critical facilities, such as mains switch rooms, for early flood detection Intelligent windows that automatically close and seal when water levels rise, preventing water ingress into the equipment rooms Replacement of aged rainwater drain pipes Our property management teams also maintain close communication with our stakeholders to ensure safety during adverse weather. Staff are equipped with handbooks, operational guidelines and regular training to ensure effective and timely responses. The long-established Emergency Support Team in Kai Shing remains active in assessing disaster risks, sourcing preventive equipment and conducting drills. It also undertakes activities, such as drone inspections of exterior walls and structural assessments, which help enhance property resilience. In collaboration with the university, the team also explores innovative materials, such as glass with enhanced strength, to further improve building safety. During the reporting year, Kai Shing organized an emergency response drill at Shanghai IFC to strengthen staff collaboration and response capabilities for heavy rain and flooding. The drill involved Emergency Response Team (ERT) members, staff from Shanghai IFC and officials from the Shanghai Fire Department. It simulated three scenarios: flooding caused by broken curtain wall glass, escalator failures due to water leaks, and electrical fires resulting from water damage. The team quickly executed emergency procedures, securing the area and directing customers to safe exits. The Shanghai Pudong New Area Tongshan Fire Rescue Station also participated, simulating fire rescue efforts with advanced equipment. The drill demonstrated effective incident management, ensuring the safety of tenants and customers. Following the drill, an e-learning course was developed and shared with other properties to inform steps and strategies to cope with extreme weather. Hong Yip establishes the Intelligent Typhoon Monitoring and Management Platform, which integrates property data with real-time typhoon updates from the Hong Kong Observatory. The platform enables 24/7 coordination and rapid response through automated alerts, big data analytics and cloud-based communications. This facilitates the team’s immediate response to three scenarios during the typhoon season: pre-season preparation, during typhoon impact and post-typhoon recovery. The platform supports preventive measures, monitoring, analysis and safety assessments, notifications, management and follow-ups. Annual typhoon preparedness workshops have been held since 2018 ahead of each typhoon season, providing frontline staff with updates on procedures, guidelines, and new technologies to enhance their emergency response skills. This year, Hong Yip further enhanced its mobile app for incident reporting and temporary staff deployment during adverse weather conditions. The app will synchronize real-time weather signals and prompt staff at relevant buildings to report incidents. Site management and Hong Yip’s headquarters can then collect incident data, while the headquarters can control, monitor the situation and manage resource arrangements effectively, helping mitigate the impact of adverse weather on our business and building operations.