SHKP Sustainability Report 2024/25

Head Office Construction Hotels 2 Property Management Total 3 Suppliers (Hong Kong) 309 286 4,365 3,776 8,736 Suppliers (non-Hong Kong) 0 6 54 2 62 64 Sun Hung Kai Properties Limited | Sustainability Report 2024/25 Powering Sustainable Transformation Through Responsible Procurement Adhering to our green procurement guidelines, our procurement and engagement processes with suppliers and contractors incorporate environmental and social considerations. We prioritize those who demonstrate the following: ISO 14001 environmental management standards alignment BEAM Plus scheme participation Green procurement policy implementation Adoption of other sustainable practices, such as OHS in their operations The considerations incorporated into our procurement and engagement with suppliers and contractors in different business are: Head Office Favours green procurement through prioritizing suppliers that offer sustainable products, such as Forest Stewardship Council (FSC)-certified paper Property Management Prefers suppliers engaged in the Energy Saving Charter and 4T Charter of the Environment and Ecology Bureau, and the Green Council’s Sustainable Procurement Charter Encourages vendors to appoint an independent accredited auditing body to evaluate its in-house procedure as well as service or product During the reporting year: We have partnered more than 8,700 suppliers Total procurement expense exceeded HK$8.5 billion Top five suppliers represented less than 30% of total purchases Motivates suppliers by offering bonus scores during assessments for possessing certificates related to quality, environment, energy and OHS Champions workplace safety through the Charter on Preferential Appointment of OSH Star Enterprise, prioritizing suppliers with safety management systems who have completed Occupational Safety and Health Council safety audits for repair, maintenance, alteration and addition works Construction Includes contract specifications for sustainable practices, such as utilizing rechargeable power for cranes and material hoists, and substituting wood formwork with aluminium Mandates suppliers to provide documentation proving that timber is FSC-certified Hotels Prioritizes products and packaging that are biodegradable, recyclable or FSC-certified Promotes responsible seafood sourcing with Marine Stewardship Council and Aquaculture Stewardship Council certifications Our local sourcing strategy delivers triple benefits: reduced carbon footprints, strengthened regional economies and expanded community employment. We also support small, medium-sized and social enterprises across our value chain, creating positive impact in local communities. Our diverse supplier network serves multiple business segments: hotels (food), construction (building materials), property management (building services machinery), and corporate operations (office supplies). This multi-sourcing strategy promotes fair competition while enhancing supply chain resilience through reduced single-supplier dependency. 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 ~ 46% of total procurement took environmental considerations into account ~ 99% suppliers sourced locally HK 2 Figures for hotel suppliers only cover Royal brand hotels this year. 3 Supplier data from SmarTone and SUNeVision can be found in their respective ESG reports. We will explore the feasibility to include data from our franchise hotels and other non-property portfolio businesses in the future.