SHKP Sustainability Report 2024/25

65 Sun Hung Kai Properties Limited | Sustainability Report 2024/25 Our subsidiaries also implement supplier selection, assessment procedures and guidelines: Property Management Effective Tendering and Supplier Management We require all suppliers and contractors to sign an Environmental, OHS Commitment and abide by our environmental and energy policies. Hong Yip’s ePro tendering system allows suppliers to receive invitations and submit tenders online. All registering vendors must complete a self-assessment, covering managerial competency, financial conditions, labour compliance and safety. An ESG performance self-assessment tool for approved vendors was also introduced which shared latest ESG trends and ideas for future engagement. Vendors who responded earned bonus assessment marks. Vendors’ profiles and performance are assessed annually through scoring, which is subsequently used as indicators of their viability for tenders. Vendors failing to meet expectations might receive verbal or written warnings or, in severe cases, be removed from the list of approved vendors. Systematic quality assurance and monitoring are conducted through our vendor complaint management system. For major projects, we require detailed method statements, work programmes and delivery schedules for approval. Hotels Monitoring of Suppliers’ Compliance Systematic supplier oversight is conducted through annual Supplier ESG Performance Evaluation Questionnaires, with new suppliers pledging Supplier Code of Conduct compliance. During the reporting year, Royal Park Hotel’s evaluation covered more than 200 suppliers and none of them were considered as high risk. In addition, stringent food safety protocols and standards mandate Food Safety and Health Declaration Forms alongside comprehensive documentation spanning business registration documents, food factory licenses, laboratory tests for products, food health and safety certificates as well as food-grade certificates during initial qualification checks. Suppliers’ product quality, delivery timeliness and after-sales service throughout the contract period are regularly reviewed with questionnaires, laboratory tests, pre-delivery quality checks and end-product quality surveys. Annual audits and on-site inspections cover personal hygiene, food processing, storage, waste management, site safety, food safety certification, chemical storage, equipment cleaning and pest control. Suppliers handling high-risk products, such as ready-to-eat food and fresh seafood, are subject to closer examination and enhanced oversight. Should non-compliance arise, immediate rectification is followed by a re-audit. During the reporting year, three hotels conducted food safety audits and 100% of our active suppliers met our requirements. No suppliers failed or were suspended during the reporting year. failure to attain satisfactory results, may lead to downgrading or delisting. Providing Training We deliver extensive ESG-related training focusing on OHS, environmental management, anti-corruption and business ethics, including the use of whistleblowing channels, to suppliers, contractors and subcontractors. In addition, we disseminate industry best practices as benchmarks for their ongoing enhancement. Annual quality assurance training encompasses all full-time and part-time employees, suppliers and contractors. Our procurement teams also receive specialized training on supplier ESG programmes, strengthening internal management capabilities. During the reporting year, we provided around 430,000 hours of health and safety training at construction sites in Hong Kong, with an average of 12.1 training hours per employee. Engaging with Industry Peers to Address Environmental Concerns We collaborate with industry partners to pioneer solutions that optimize production, reduce costs and advance sustainable building practices. We work closely with them to address environmental concerns in the supply chain Mitigating the Supply Chain Risks Sanfield at ACI Singapore Chapter’s Annual Seminar 2024 Sanfield at CCPA Belt & Road Forum and explore innovation. This year, Sanfield participated in the American Concrete Institute (ACI) – Singapore Chapter’s Annual Seminar 2024 and the 3rd China Concrete and Cement- based Products Association (CCPA)’s Belt & Road Forum. We engage in discussions on DfMA and lightweight concrete applications, generating valuable insights into low-carbon materials and techniques, and inspiring continued industry collaboration for greener construction practices. Our suppliers are encouraged to adopt international environmental management standards. Sanfield’s executive management oversees the implementation of its Sustainable Supply Chain Management Guideline and ESG programmes for suppliers and contractors. Engaging and Communicating with Suppliers and Contractors We actively identify and evaluate environmental and social risks across our supply chain to address potential disruptions from natural disasters, extreme weather, epidemics, safety incidents and labour disputes. Through transparent two-way communication, monitoring of market trends and diversified sourcing strategies, we maintain supply chain resilience and cost-effectiveness. Our Supplier Code of Conduct establishes clear expectations across compliance, business ethics, environmental protection, biodiversity conservation, OHS, human rights and equal opportunities, labour practices and data privacy. We evaluate the performance of suppliers and contractors through annual sustainability- related assessments. Non-compliance, including violations of laws and regulations, failure to meet contract requirements, misconduct, or 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