SHKP Sustainability Report 2024/25

Appendix II – Stakeholder Engagement Process and Double Materiality Analysis Methodology Stakeholder Engagement Process Understanding stakeholder perspectives is fundamental to SHKP’s sustainability development. We have engaged various stakeholder groups annually since 2013. Through surveys, interviews and/or stakeholder review panel discussions, we collect their feedback on our sustainability strategy and performance. Our double materiality assessment allows us to identify topics material to both ESG aspects and our enterprise value. We maintain ongoing and proactive communication with our stakeholders through various channels, including direct dialogues, interviews and surveys to ensure our sustainability efforts align with their expectations. Double Materiality Analysis Methodology In 2023/24, SHKP commissioned an independent consultant to conduct a double materiality assessment advocated by the Global Reporting Initiative (GRI) and the International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards. The assessment examines ESG topics through two dimensions: ‘financial materiality’, assessing their impact on SHKP’s enterprise value, and ‘impact materiality’, examining their impact on the economy, environment and people. This process influences our sustainability strategy and shapes our sustainability efforts. Customers and Tenants (including residents, commercial and industrial building tenants and hotel corporate clients) Apps from property management Concierge, retail stores, call centres, customer hotline, online and mobile phone applications Customer satisfaction surveys E-mail Go Royal SHKP Club The Point by SHKP Website and social media Professional Bodies and Academia Industry forums Interviews Joint-venture Partners Real estate industry trade associations and advisory groups Shareholders and Investors Analyst briefings and annual general meetings Annual and interim reports Investor forums and conferences Investor meetings and conference calls Investor Relations page on SHKP’s website Overseas roadshows NGO Partners Community programmes run by the SHKP Reading Club SHKP Hong Kong Cyclothon SHKP Building Homes with Heart charity programmes by the SHKP Volunteer Team Visits to charities on programmes supported by Group donations Interviews Suppliers Audits and assessments Interviews Meetings Ongoing direct engagements Online tendering system Supplier assessment Vendor portal e-platforms Employees Employee engagement activities Interviews Intranet Meetings Performance reviews Quality-Raising Suggestion Scheme SHKP Quality Academy Staff surveys Training Work Safety Suggestion Scheme Media Partners and Social Media Meetings Press conferences Website and social media Identifying potentially material ESG topics Update list of potential material ESG topics with reference to the Group’s previous material topics resulting from peer benchmarking and industry trend analysis. Categorize material ESG topics into five key themes based on sustainability landscapes and emerging trends: • Governance and Economic • Environment • Workplace Practices • Society • Product Responsibility Ranking ESG topics through impact materiality and financial materiality Validating the results Develop a double materiality matrix that visualizes the relative significance of ESG topics based on the collected quantitative and qualitative feedback from stakeholders to inform decision-making. The Sustainability Steering Committee reviews and endorses the results of the materiality assessment, including the prioritized material topics and the finalized matrix. Government and Regulators Interviews Meetings Public consultation Stakeholder Groups Step Step Step The insights and feedback gathered deepen our understanding of stakeholder priorities and concerns, enabling us to further identify and prioritize current and emerging sustainability-related risks in our daily operations. We engage in regular and customized communications with stakeholders through the following channels: The double materiality assessment process adheres to the AA1000 Stakeholder Engagement Standard and aligns with the principles of stakeholder inclusivity, materiality, responsiveness and impact of the AA1000 AccountAbility Principles and the GRI Standards 2021 requirements. Through a structured three-step methodology, we systematically identify, prioritize and validate the ESG topics most critical to our business operations. We engaged a diverse range of internal and external stakeholders to assess the importance of sustainability issues and to share their views on our sustainability performance. Invite internal and external stakeholders to participate in online surveys. Employees, customers, NGOs, partners, investors, academia, suppliers, industry associations and media partners were invited to participate in the impact materiality survey, while senior management, investors and shareholders participated in the financial materiality survey. Rank ESG topics based on the perceived impact on the Group’s enterprise value and the Group’s impacts on ESG aspects on a numerical scale system. Supplement survey results with qualitative feedback from stakeholder review panel discussions and interviews. 85 Sun Hung Kai Properties Limited | 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 Appendix II