Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy
• Waste
• Water
• Biodiversity
• Occupant Wellbeing
• Building/Asset Investments
• Financial Performance
• Green Financing
• Corporate Governance
• Risk Management
• Disclosure and Reporting
• Investor Relations
• Community Investment
• Liveability
• Local Economy
• Connectivity
• Talent Attraction
• Talent Retention
• Safety, Health and Wellbeing
• Diversity and Inclusion
• Volunteering
• Suppliers
• Tenants
• Customers
• Residential Owners and Occupiers
• Government
• NGOs
• Joint Venture Partners

Environmental Achievements

• Reduced carbon intensity in Hong Kong and Mainland China portfolios and hotel operations compared to 2018.
• Reduced energy consumption in Hong Kong portfolio by 62.7 million kWh compared to 2008.
• Reduced energy consumption in Mainland China portfolio by 23.2 million kWh compared to the BAU scenario.
• 97% of all existing buildings are certified green buildings, with 84% achieving the highest ratings.
• One Taikoo Place became the first commercial building in Asia to achieve WELL Core and Shell Version 1 Final Platinum Certification.
• INDIGO mall, ONE INDIGO, and EAST, Beijing achieved Final Platinum under LEED Existing Buildings: Operations and Maintenance Version 4.1, the first mixed-use development in the world to do so.
• First approved Science-based Target set by a Hong Kong and Mainland China developer to drive long-term decarbonisation.

Social Achievements

• Launched a flexible working policy and guidelines.
• Women hold 51% of management positions.
• Gender remuneration ratio (female to male): 1 to 1.
• Community Ambassador Programme contributed >7,000 volunteer service hours, supporting 98 activities.
• Developed a methodology for assessing, measuring and reporting on the impacts of our developments.
• Published our first Places Impact Report for Taikoo Place.

Governance Achievements

• Launched our first sustainability-linked loan of HK$500 million, with the interest rate indexed against the Company’s year-on-year ESG performance improvement.
• Swire Properties Named One of the Best Companies to Work for in Hong Kong for the fourth consecutive year.
• Adopted a diversity and inclusion (“D&I”) Policy.
• Established a D&I committee.
• Conducted D&I awareness training for our senior management.

Climate Goals & Targets

Environmental Challenges

• Climate change, including physical risks (flooding, extreme weather) and transition risks (regulatory changes, market shifts).
• Supply chain disruptions.
• Maintaining a low Lost Time Injury Rate.

Mitigation Strategies

• Established science-based targets (SBTs) aligned with the Paris Agreement.
• Undertaking detailed risk and resilience assessments at the asset level.
• Developed alternative sourcing strategies.
• Implemented corrective measures and revised compulsory induction safety training for frontline staff in Mainland China.

Supply Chain Management

Supplier Audits: Annual supply chain risk assessment of top 25 critical suppliers.

Responsible Procurement

• Supplier Code of Conduct
• Green procurement guidelines
• Sustainable sourcing of materials

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Extreme weather events
• Increasing temperatures

Transition Risks

• Regulatory changes
• Market shifts
• Reputational risks

Opportunities

• Development of low-carbon and climate-resilient assets
• Mitigation of operational costs attributed to extreme weather conditions
• Stimulation of business innovation

Reporting Standards

Frameworks Used: GRI Standards: Core option, HKEX ESG Reporting Guide

Certifications: ISO 14001, ISO 50001, ISO 45001, BEAM Plus, LEED, WELL

Third-party Assurance: Deloitte Touche Tohmatsu

UN Sustainable Development Goals

• SDG 3
• SDG 5
• SDG 8
• SDG 9
• SDG 11
• SDG 12
• SDG 13

Initiatives align with these SDGs across the five pillars of the SD 2030 Strategy.

Awards & Recognition

• Dow Jones Sustainability World Index – Top Ten Globally, Number One in Asia
• Global Real Estate Sustainability Benchmark (“GRESB”) – Global Sector Leader
• Hang Seng Corporate Sustainability Index – Top Company
• Hong Kong Management Association’s Hong Kong Sustainability Award 2018/2019 (Grand Award and others)
• Green Building Awards 2019 (Pioneer Award and others)
• Randstad Employer Brand Awards (Top three companies to work for in Hong Kong)

Environmental Metrics

ESG Focus Areas

• Green Building Construction and Renovation
• Technology and Innovation
• Energy Efficiency
• Tenant and Customer Engagement
• Contribute to Local Economic Development
• Climate Adaptation and Resilience
• Cyber Security & Data Governance

Environmental Achievements

• Achieved 80+ Green building certifications
• Reduced Scope 1 & 2 GHG emission intensity by 35% (2020 vs. 2018 baseline)
• Reduced energy consumption by 31.3% in Hong Kong portfolio (2020 vs. 2008 baseline) and 23.4% in Chinese mainland portfolio (2020 vs. first available full-year baseline)
• Sourced 100% renewable electricity offsite since 2020 in Hong Kong and 2021 in mainland China
• Achieved 84% demolition waste diversion and 68% construction waste diversion (Two Taikoo Place)
• Commercial waste diversion rate of 34.6% in Hong Kong and 25% in mainland China

Social Achievements

• Named Hong Kong’s Most Attractive Employer in the Randstad Hong Kong Employer Brand Research 2020
• Maintained a lost time injury rate (LTIR) at or below 2.0
• Adopted a Diversity & Inclusion (D&I) Policy and established a D&I Committee
• Maintained a gender pay ratio at 1:1.05
• Implemented a Green Performance Pledge (GPP) with 60% of new office leases and renewals

Governance Achievements

• Established a sustainable procurement system in Hong Kong and mainland China with HK$1,196M total spending in 2020
• Tied executive compensation to SD performance indicators
• ~30% of current bond and loan facilities come from green financing

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct, sustainable procurement system, e-tracking system

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO 14001 EMSS

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Global Sector Leader –Others (MSCI, 2017-2019), Global Sector Leader –Mixed Use (MSCI, 2020), DJSI World since 2017, AAA rating (MSCI since 2018)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Management
• Resource and Circularity
• Water Conservation
• Biodiversity
• Occupant Wellbeing

Environmental Achievements

• Reduced Scope 1 and 2 absolute GHG emissions by 29% compared to the 2019 baseline.
• Reduced carbon intensity from the tenant-controlled portion of downstream leased assets by 40% compared to the 2018 baseline.
• Reduced electricity use intensity by 15% in Hong Kong portfolio and 7% in Chinese Mainland portfolio compared to the 2019 baseline.
• Approximately 6% of landlord’s building energy was supplied by renewable sources at Two Taikoo Place.
• Hong Kong portfolio achieved 26.1% commercial waste diversion rate from landfills.
• Hong Kong projects under development achieved 99.7% demolition waste diversion rate.
• Chinese Mainland portfolio achieved 45.7% commercial waste recycling rate.
• Reduction of water intensity: Hong Kong portfolio 9.4%, Chinese Mainland portfolio 26.8%, Hotels 3.5%.
• 90% of buildings in our Hong Kong portfolio achieved IAQ Excellent Class.
• 80% of buildings in our Chinese Mainland portfolio fulfilled the local IAQ standard.
• 100% of projects under development achieved the highest environmental building assessment scheme rating.
• 92% of wholly-owned existing developments achieved the highest ratings.

Social Achievements

• Launched Green Performance Pledge, achieving a 20% completion rate for energy audits.
• Launched Green Kitchen Initiative, collaborating with tenants on sustainability measures.
• Supported Métier Minus, a used luxury fashion charity pop-up, raising over HKD421,000 for a local social enterprise.
• Launched Citygate Outlets “Beyond Glass” Sustainability Campaign.
• Cityplaza incorporated sustainability elements into the mall’s Christmas decorations and souvenirs.

Governance Achievements

• Updated Environmental Policy and Energy Policy to comply with ISO 14001 and ISO 50001.
• Chief Executive participated in WBCSD Built Environment Pathway Board.
• Member of SBTi Expert Advisory Group, contributing to SBTi Buildings Guidance development.
• First real estate developer in Hong Kong to contractually require low-carbon building materials for new projects.

Climate Goals & Targets

Environmental Challenges

• Increased energy demand at some portfolios due to post-pandemic recovery.
• Reduced supply of offsite renewable electricity in the power purchase agreement at Taikoo Li Chengdu.
• Limited renewable energy sources in the Chinese Mainland.
• Changing government regulations in the Chinese Mainland.
• Managing waste in line with upcoming legislation in Hong Kong and the Chinese Mainland.

Mitigation Strategies

• Adoption of innovative low-carbon technologies and better energy management practices.
• Exploring innovative and efficient ways to utilise energy produced (PEDF solution).
• Refined machine learning algorithm to predict cooling load requirements.
• Exploring opportunities to increase on-site renewable energy generation and source off-site renewable electricity.
• Starting renewable energy procurement processes earlier and exploring investment in off-site renewable energy facilities.
• Developing implementation guidelines for MSW charging and arranging dissemination sessions for key stakeholders.
• Conducting waste audits to help tenants identify waste reduction and recycling opportunities.
• Expanding initiatives to promote reuse (smart reusable cup and food box initiatives).

Supply Chain Management

Responsible Procurement

• Low-carbon building materials
• FSC-certified timber
• Sustainable seafood

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Heat stress
• Water stress
• Extreme wind

Transition Risks

• Tightened building energy codes and guidelines
• Introduction of carbon pricing
• More stringent public disclosure requirements
• Increased market demand for climate-resilient properties
• Increased tenant demand for energy efficiency and data transparency
• Growing investor demand for green and low-carbon finance and investment
• Potential increase in insurance premiums
• Increased exposure to reputation and litigation risks

Opportunities

• Increased market demand for green and energy-efficient properties
• Increased adoption of low-carbon construction materials
• Increased adoption of green and low-carbon technology
• Increased adoption of renewable energy
• Potential savings on carbon taxes
• Savings through green financing instruments

Reporting Standards

Frameworks Used: GRI, HKEX

Certifications: ISO 14001, ISO 50001, BEAM Plus, LEED, China Green Building Label, WELL

UN Sustainable Development Goals

• SDG 7
• SDG 11
• SDG 12
• SDG 13
• SDG 6
• SDG 3

Initiatives contribute to these goals through energy efficiency, sustainable building design, waste reduction, water conservation, biodiversity protection, and occupant wellbeing.

Awards & Recognition

• Top 10 Building PEDF Best Practices award
• Grand Award at the 2023 HKGBC Green Building Award (Citygate Outlets)
• Sustainability Award at the RICS Hong Kong Awards 2023
• LEED for Cities and Communities Gold rating (Taikoo Place)
• Commercial Property Project of the Year at the RICS Awards China 2023 (Taikoo Li Qiantan)
• Grand Award at the Quality Building Award 2022 (Taikoo Li Qiantan)
• LEED Platinum certification for Pacific Place office portfolio
• LEED Platinum certification for HKRI Taikoo Hui