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 33 Sun Hung Kai Properties Limited | Sustainability Report 2024/25 Meanwhile, Sanfield maintains its site-level emergency guidelines to address extreme weather, particularly heat-related risks. Preventive measures, such as thermal stress assessments, health monitoring, hydration stations, and training on heatstroke prevention are in place. We provide workers with cooling facilities and electrolyte supplements whenever Very Hot weather warnings are issued by the CIC. To enhance operational resilience and resource efficiency, our property management and construction subsidiaries adopt internationally recognized environmental and energy management systems, including ISO 14001 and ISO 50001. During the reporting year, around 60% of our managed properties and construction sites in the reporting scope, and Wilson Parking were certified with ISO 14001 or ISO 50001 standards. For ICC, we have also implemented an adaptation plan aligned with ISO 22301 Business Continuity Management Systems to ensure service continuity during disruptions. strategy and help ensure resilience amid evolving technology, regulatory, market and stakeholder expectations. Our Sustainable Supply Chain Management Guideline outlines procedures for vendor registration, tender selection, critical supplier identification, performance evaluation and risk exposure assessment. This enables us to identify and manage transition-related risks throughout our procurement processes and supply chain operations. For more details, please refer to the Mitigating the Supply Chain Risks section. Building on the climate-risk assessment and the mitigation and adaptation strategies outlined earlier, we have also developed a Low Carbon Transition Plan . This plan supports the Group’s decarbonization journey and reinforces our commitment to long-term climate goals. Our property management subsidiaries maintain close communication with relevant government authorities to address climate change concerns, including flooding risks. These engagements help shape more resilient urban planning, response strategies and infrastructure enhancement. When repeated flooding is observed in surrounding areas due to heavy rainfall, our teams will promptly report to the Drainage Services Department. We collaborate with the government to evaluate and implement appropriate measures, such as enhancing existing storage capacity or installing new stormwater tanks, to more effectively manage extreme rainfall events. Transition Risk To mitigate the transition risk, the Group adopts a comprehensive approach to risk management across its operations and value chain. These efforts support the Group’s broader climate Low Carbon Transition Plan This transition plan, developed to align with the HKSAR Government’s Climate Action Plan 2050 and informed by our scenario-analysis results, sets out our short-, medium- and long-term strategies, actions and targets to address climate-related risks and opportunities. Short/Medium Term (up to 2030) Medium/Long Term (up to 2050) Low-Carbon Design and Green Construction Apply green building standards and climate-resilient designs in new development planning Scale prefabrication and other smart, low-carbon construction and building technologies, including energy-efficient, electric equipment Support green material and technology development with universities and partners Maintain and expand green building certifications across our property portfolio Energy and Resource Efficiency Work towards our 10-year environmental targets Conduct carbon/energy audits and retrofit projects Deploy smart building management systems and environmental data analytics Increase on-site solar energy generation and consumption Accelerate rollout of EVs and charging infrastructure Circularity and Stakeholder Engagement Minimize waste production in our operations and encourage recycling in the community Engage key stakeholder groups on sustainability initiatives Expand the scope of the green lease agreement Expand the SPS programme Low-Carbon Operation and Business Scale low-carbon operation and business Establish ambitious environmental targets towards net-zero carbon commitment Value Chain Decarbonization Develop a sustainable supply chain system aligned with our guidelines and standards Scale existing initiatives with suppliers, contractors and other partners to drive collective decarbonization Purchase RECs where appropriate Develop programmes to reduce emissions with tenants Financing for Decarbonization Develop mechanism for internal carbon pricing Expand our green financing profile, where applicable Embed measurable sustainability performance targets into new financing mechanisms By 2030, we will reduce 35% of scope 1 and 2 GHG emissions intensity of our EOC-monitored buildings from FY2019/20 2030 2050