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 37 Sun Hung Kai Properties Limited | Sustainability Report 2024/25 Resource Management We maintain a comprehensive approach to resource stewardship, encompassing sustainable sourcing, strategic supplier selection, and detailed procurement monitoring. Water risk represents a key ESG consideration within our Group, with our property management division being the primary consumer, followed by other business units. Water is often consumed in our daily operations through cleaning, irrigation, customers’ business uses, construction processes, and hotel operations, including food and beverage preparation and laundry services. We solely consume water from municipal water sources and do not extract water from alternative sources. To evaluate water risk and availability, and to integrate water risk management into our overall business strategy, we conduct an annual water stress test and analysis covering all of SHKP’s assets within the Hong Kong portfolio, using the World Resources Institute’s Aqueduct Water Risk Atlas tool 11 for this assessment. The results assist us in evaluating water risk and availability across our portfolio and operations. As part of our commitment to water stewardship, we aim to improve water efficiency, mitigating uncertainties related to water availability and preventing escalating water stress that could impact our operations and the communities we serve. We actively promote water conservation through various initiatives, including: High-efficiency water fixtures: Our property management arms prioritize using labelled water-efficient products. We install water flow controllers and automatic faucets in our managed properties, and dual flush toilets on construction sites On-site wastewater treatment: Sanfield processes wastewater on-site and reuses greywater for cleaning purposes Rainwater collection: At our construction sites, Sanfield collects and reuses rainwater on-site. In our major managed malls, we also have rainwater collection facilities to collect rainwater for irrigation Regular inspection for water fixture: Our subsidiary Superpower conducts pump inspections, performs maintenance activities, records data and utilizes computer analysis Car park cooling system: Mikiki has developed a car park cooling system to utilizes condensation water from air conditioning 0 0.1 0.3 0.5 0.7 0.2 0.4 0.6 0.8 Water use intensity (m 3 /m 2 of total gross floor area) 2019/20 2020/21 2022/23 2023/24 2021/22 0.71 0.75 0.69 0.69 0.67 0.65 IoT leak detection system: KCC and Port 33 are among the first batch of properties to integrate IoT leak detection systems and automatic water shut-off systems in the industry. When a water leak is detected, wireless signals will be sent to the system and technicians for efficient follow-up. In addition, Hong Yip has collaborated with HKMU in developing IoT solutions in monitoring leakages of water pump systems Reduce unnecessary amenities replacement: Most of our Royal Hotels and franchise hotels have implemented a guest linen reuse programme Internal tracking platform: Hyatt Centric Victoria Harbour Hong Kong adopts the Hyatt EcoTrack to track metrics, including water use, which can generate insights and identify areas for improvements We maintain strict compliance with the Hong Kong Water Pollution Control Ordinance, ensuring proper treatment and discharge of both residential and commercial effluents through government drainage systems. We treat construction sewage as per relevant regulations before discharge. 11 The results indicate that none of our operations in Hong Kong have high or extremely high overall water risk. Specifically, all our Hong Kong operations face low-medium baseline water stress levels (10-20%). The Group has not faced significant challenges in securing water. 2024/25 Our achievements on water management this year include: Implemented water conservation projects across 46 managed properties 79 managed properties committed to the ECH 2 O water management charter under the Enterprises Cherish Water Campaign 31 managed properties signed Water Supplies Department’s Let’s Save 10L Water v2.0 Charter 10L Financial year Water Use Intensity of Major Buildings Monitored by the EOC 2 Our water consumption intensity has reduced by ~ 7.6% since FY2019/20