SHKP Sustainability Report 2024/25

5 Sun Hung Kai Properties Limited | Sustainability Report 2024/25 Guided by the core philosophy of Building Homes with Heart, the Group integrates Environmental, Social and Governance (ESG) factors into its decision-making process. Our robust corporate governance policies and strategies support the Group’s sustainable development, while the Sustainability Steering Committee oversees the implementation and progress of our sustainability objectives. To understand the needs and concerns of our stakeholders, we actively engage with our stakeholders through diverse channels to create long-term value. Corporate Governance The Board of Directors (the Board) guides the overall direction of the Group’s strategies and development, including our sustainability and climate-related strategies and initiatives. The Board, via the Executive Committee, monitors and reviews the Group’s corporate governance practices across our business operations to maintain high standards and ensure compliance. The Audit and Risk Management Committee, chaired by Independent Non- Executive Director Eric Li and with Dicky Yip, Norman Leung and Richard Wong as members, supports the Board in overseeing the effectiveness of the Group’s risk management and internal control systems to cover a broad spectrum of risk elements, including ESG-related risks, which are evaluated and integrated into our decision-making process. The Committee’s latest terms of reference can be accessed through the Group’s website and the website of The Stock Exchange of Hong Kong Limited. The Group maintains a high level of transparency by ensuring timely and accurate disclosure through regular and active engagement with stakeholders. As such, our robust corporate governance standards are widely recognized by the industry, earning numerous international and regional accolades. These include Hong Kong’s Best Overall Company 2025 awarded by FinanceAsia , The World’s Best Real Estate Developer Award by Euromoney and ESG Leading Enterprise by Bloomberg Businessweek/ Chinese Edition and Deloitte. For the full list of awards, please refer to our Corporate Website or Appendix I of this report. More details of our corporate governance structure and practices can be found in the Corporate Governance section of our Annual Report 2024/25. Sustainability Governance The Group’s dedication to sustainability is overseen by an established governance framework, ensuring clear definitions and consistent maintenance of roles and responsibilities. The Board Leading and overseeing the Group’s ESG-related issues The Board, via the Executive Committee, integrates ESG strategies into the Group’s long-term development plans. Under this structure, the Board also oversees ethical issues and ensures the effectiveness of ESG risk management and internal control systems as well as incorporating ESG risk factors into decision-making processes. Executive Committee Implementing ESG strategies, assessment and prioritization of material ESG issues and ESG-related risks The Executive Committee is responsible for upholding the Group’s high standards of corporate governance by overseeing and consistently reviewing corporate governance practices, including policies and reports to ensure ongoing compliance. The committee monitors the Group’s progress towards ESG objectives and performance, and evaluates the impact of the ESG initiatives on the economy, environment and stakeholders. The committee approves the annual Sustainability Report, identifies areas for enhancement in the Group’s ESG matters, and makes recommendations where appropriate. Sustainability Steering Committee (SSC) Overseeing implementation of the Group’s ESG strategies throughout business operations Chaired by a Deputy Managing Director and comprising senior managers from key divisions, the SSC is central to driving the Group’s sustainability strategy. The SSC actively tracks global sustainability trends, identifies and manages material ESG issues, and provides recommendations to enhance the Group’s sustainability performance. The SSC’s responsibilities include formulating, monitoring, and reporting on ESG plans, performance, objectives and targets. The SSC regularly engages and evaluates stakeholders’ feedback, summarizing findings for management annually. Every three years, the SSC reviews and refines its stakeholder engagement approach to strengthen communication. The SSC also systematically reviews ESG-related policies and the Sustainability Report annually to ensure relevance and accuracy. The SSC organizes meetings regularly and its chairman maintains close communication with the Board and the Executive Committee to report any significant ESG issues where necessary. Please refer to the Value Created for the Environment section of this report for detailed information regarding our climate governance. 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 Our Approach to Sustainability