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 34 Sun Hung Kai Properties Limited | Sustainability Report 2024/25 Considering the strategies and measures outlined above, the Group assesses that the residual physical and transition risks over the short, medium and long term are limited and well-managed. These risks are not expected to have a material impact on our business model, value chain, financial position, financial performance, or cash flows. Based on current analysis, we do not anticipate any significant changes to the carrying amounts of assets and liabilities within the next annual reporting period as a result of climate-related factors. Deepening Insights Through Cross-Functional Engagement and Opportunity Analysis We broadened our understanding last year through targeted stakeholder engagement and quantitative analysis of climate-related opportunities. With the support of an independent consultant, we launched an online survey and facilitated a climate-focused workshop involving cross-functional representatives from project 8 The calculation based on a carbon tax of USD48/tCO 2 is expected to be introduced in China in 2030, as suggested by the NGFS Phase 4 Scenario Explorer. 9 Includes BEAM Plus new and existing buildings (comprehensive and selective schemes), LEED or BREEAM certificates received by properties owned or managed by SHKP in Hong Kong. 10 Includes development projects in Hong Kong, which have achieved or committed to BEAM Plus, LEED or BREEAM certificates. Metrics and Targets The Group uses a range of metrics to monitor and manage climate-related risks and opportunities across our operations. These metrics provide insight into how climate considerations are integrated into strategic planning, operational decisions and capital allocation. In particular, selected capital deployment metrics illustrate how financial resources are being directed towards initiatives that support our climate transition. These investments are expected to gradually reshape the Group’s asset profile and operating cost structure over the short, medium and long term, contributing to reduced risk exposure and enhanced long-term resilience. Metrics Categories Metrics Unit of Measure FY2024/25 Climate-related Opportunities Percentage of gross rental income from certified green buildings 9 % ~ 80 Capital Deployment Investment in energy-efficient or low-carbon products/services from property management subsidiaries HKD ~ $75.3 million Percentage of annual capital investment in green building development 10 % ~ 88 Green Building Management Number of projects in Hong Kong that earned BEAM Plus, LEED or BREEAM certifications Number 123 Percentage of our managed properties (by total gross floor area) in the reporting scope that obtained green-building-related certificates % ~ 50 Percentage of our core completed office buildings (by total attributable gross floor area) for long-term rental in Hong Kong and Shanghai that received LEED Gold or Platinum ratings, including pre-certifications % ~ 85 Percentage of our ongoing construction sites (by total gross floor area) that are BEAM Plus-registered % ~ 91 Green Procurement Percentage of total procurement that took environmental considerations into account % ~ 46 design, construction, project management, leasing and property management. These sessions provided an opportunity for participants to reflect on past climate events, assess the likelihood and potential consequences of emerging risks, and discuss tailored adaptation strategies and actionable plans for their respective operations. Key observations – including constraints and capacity needs – were compiled into a comprehensive report to guide management decision-making and enhance proactive risk mitigation efforts. In parallel, we undertook a financial impact analysis to assess the potential benefits of climate-related opportunities, particularly focusing on cost savings from emissions reduction and carbon tax implications. Leveraging scenarios developed by NGFS, we estimated that a reduction of around 11,400 tCO 2 e across EOC-monitored buildings in FY2024/25, compare to the previous year, could result in potential carbon tax savings of around HKD 4.2 million 8 under the NGFS Below 2°C scenario. Looking ahead, continued progress toward our carbon reduction goal will further increase these savings.