SHKP Sustainability Report 2024/25

7 Sun Hung Kai Properties Limited | Sustainability Report 2024/25 Electricity consumption intensity reduction Sustainability benchmarks and indices improvement Green building certifications attainment 2 1 3 Sustainable Finance As an integral part of our decarbonization strategy, the Group is committed to expanding its green finance profile and incorporating sustainability performance indicators into its financing frameworks. We have signed two sustainability-linked loans (SLLs) with prominent local and international banks, both of which received overwhelming responses with oversubscriptions. The SLLs cumulatively valued at HK$29.4 billion, setting unprecedented records in the Hong Kong real estate industry at respective times. The proceeds generated will be allocated towards advancing ongoing sustainability projects or deployed for general working capital. A set of predetermined sustainability performance goals has been established for SHKP to achieve based on the loan agreement, including: Our Approach to Stakeholder Engagement Active stakeholder engagement is crucial for gaining valuable insights into their perspectives and priorities, enabling us to refine our sustainability strategies. Our Stakeholder Engagement Policy guides us on stakeholder engagement processes, ensuring transparent and effective communication with stakeholders. The Group actively engages with both internal and external stakeholders through various channels to understand their concerns and interests. We constantly seek stakeholders’ feedback and recommendations regarding the design, review and operation of our communication channels and grievance mechanisms. For more details on our stakeholder engagement process, please refer to Appendix II . The Group adopts a three-year approach to engage with various stakeholder groups to review material ESG topics. During the previous reporting year, we conducted a double materiality assessment, as recommended by the GRI and IFRS Sustainability Disclosure Standards, to gather valuable insights that could enhance the Group’s sustainability strategies, policies and practices. Two review panel discussion sessions and eight one-on-one interviews were conducted with representatives from different stakeholder groups to offer insights into our sustainability strategy. More than 600 internal and external stakeholders responded to our online surveys, in which they ranked the ESG topics according to their perceived impact on the Group’s enterprise value and the Group’s impacts on ESG aspects on a numerical scale system. For more details on our double materiality assessment and stakeholder engagement process, please refer to Sustainability Report 2023/24 . This year, we appointed an independent consultant to conduct individual interviews with internal stakeholders to ensure fair, open conversations as well as objective analysis and recommendations. We collected feedback to review the impact and financial materiality of ESG topics and gained further insights into potential sustainability risks and opportunities in the short-, medium-, and long-term. The interviews covered material topics that might have an impact on SHKP’s enterprise value as identified in the double materiality assessment last year. We also drive transformation along our value chain. In FY2023/24, Sanfield collaborated with DBS Bank (Hong Kong) Limited to launch an innovative sustainability-linked finance mechanism for suppliers and contractors. By offering an early payment to Sanfield’s suppliers and contractors upon meeting sustainability performance targets, the mechanism enhances the cash conversion cycle and sustainability performance of our value chain partners. For more details, please refer to the Value Created for Supply Chain section. 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