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 35 Sun Hung Kai Properties Limited | Sustainability Report 2024/25 We continuously monitor our GHG emissions across scope 1, 2 and 3 to evaluate the Group’s decarbonization progress. To enhance the accuracy and coverage of our emissions inventory, we initiated a third-party-led review of scope 3 emissions since 2022, with updated methodologies and data sources implemented progressively. For more details, please refer to Appendix III . We regularly review the validity of our established environmental targets and assess our performance against them, taking into account our long-term sustainability objectives as well as the evolving regulatory landscape in Hong Kong. This includes considering the national commitment to carbon neutrality by 2060 and the HKSAR Government’s Climate Action Plan 2050. For details of these long- term targets and our progress toward them, please refer to the Sustainable Building and Environmental Targets and Accelerating Decarbonization Throughout Our Operations sections. Scope 2 emissions 584,757 tonnes CO 2 e Scope 1 emissions 49,236 tonnes CO 2 e Scope 3 emissions 1,559,671 tonnes CO 2 e Encouraging Waste Reduction and Recycling Our operations primarily generate construction, demolition and general waste. Aligned with the Waste Blueprint for Hong Kong 2035, we implement a three-tiered waste management approach focusing on prevention, reduction and recovery. This strategic framework has driven significant progress toward our 10-year construction waste diversion target. For detailed targets and progress, please refer to the Strategies and Management section. Design and Construction We embed waste management principles throughout project lifecycles while leveraging advanced technologies for resource optimization. Through BIM simulations, precast elements and DfMA, we minimize design errors and material waste while maintaining quality standards. Our contractor engagement includes strategic measures like standardized material dimensions and on-site recycling facilities, complemented by project-specific waste reduction targets for contractors, where feasible. For instance, our project NOVO LAND implements a comprehensive waste management plan targeting 100% reuse or recycling of excavated materials and lateral support components. Across all development sites, we maintain rigorous waste management plans and waste separation protocols. Recyclable materials, such as paper, cardboard, metal, aluminium, plastic and glass, are directed to local recycling centres. Sanfield provides specialized waste management training to the majority of our employees and contractors. All contractor representatives undergo waste management training and comply with contractual waste management requirements. Our material procurement strategy prioritizes waste reduction through repurposing excavated soil and sand for backfilling and reclamation, utilizing prefabricated steel reinforcement bars, and recycling scrap steel, such as bored piles and I-beams. We actively support circular economy by sourcing recycled products, including recycled High-Density Polyethylene scaffold net, timber decking, reconstituted stone, recycled steel and glass-based paving blocks. We further incentivize contractors to prioritize material recovery and recycling. These efforts helped us divert around 96.1% of construction waste from landfills this year. Operation Success in driving circular economy initiatives depends on strong collaboration with stakeholders, including tenants, customers and residents. Reducing Domestic and Packaging Waste The Royal Hotels and our property management subsidiaries have demonstrated their commitment by signing the Carbon Neutrality (Waste Reduction) Charter, focusing on comprehensive waste management and plastic reduction. In alignment with government regulations and sustainable consumption practices, our hotels have implemented various initiatives, including water stations, eco-friendly tableware, and refillable amenities to minimize single-use plastics.