Climate Change Data

Environmental Metrics

ESG Focus Areas

• Energy conservation
• Waste treatment
• Greenery in urban landscape
• Community engagement
• Staff development
• Environmental protection
• Resources conservation
• Employee well-being
• Occupational health and safety
• Anti-corruption
• Data privacy

Environmental Achievements

• Sunlight Tower awarded BEAM Eco Building Platinum rating in 2011
• Chiller system upgrade in Sunlight Tower resulting in 19% energy savings
• Adoption of LED lighting in Sunlight Tower
• Waste recycling initiatives in Sunlight Tower, Sheung Shui Centre Shopping Arcade, and Metro City Phase I Property
• Organic waste upcycled into fertilizer
• Energy conservation measures reducing energy consumption and carbon emissions

Social Achievements

• Flexible work-hour arrangements for head office staff
• Annual performance appraisals and career progression opportunities
• Competitive compensation and benefits
• Staff trip to Okinawa
• Various community engagement activities (e.g., Mid-autumn Festival visit to retirement home, Charity Walkathon, Sunlight Little Ironman Triathlon, Sunlight Musical Ambassador program, Read-Cycling)
• No cases of non-compliance with employment and labor laws

Governance Achievements

• Establishment of Corporate Social Responsibility Committee (CSRC) in 2012
• Implementation of anti-corruption policies and control measures
• Code of conduct established to prevent bribery, fraud, and conflicts of interest
• Anti-money laundering policy formulated
• Channels for reporting misconduct established

Climate Goals & Targets

Environmental Challenges

• Shortage of landfill space in Hong Kong

Mitigation Strategies

• Initiatives for efficient resource consumption and waste reduction
• Waste sorting and recycling programs
• Door-to-door waste paper collection
• Public events promoting waste reduction

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ESG Reporting Guide (2015) issued by the Stock Exchange

Awards & Recognition

• BEAM Eco Building Platinum rating for Sunlight Tower
• Various awards and certificates listed on page 35

Environmental Metrics

ESG Focus Areas

• Energy conservation
• Waste reduction
• Water conservation
• Community contribution
• Employee well-being
• Occupational health and safety
• Anti-corruption
• Supply chain management
• Environmental compliance
• Customer privacy

Environmental Achievements

• Sunlight Tower awarded Platinum rating under BEAM Plus for Existing Buildings
• Total carbon footprint reduced by 2.6% compared to FY2015/16
• Total energy consumption reduced by 1.8% compared to FY2015/16
• Implementation of LED lighting in various properties
• Waste separation and recovery mechanisms implemented at multiple properties
• Upcycling of organic waste into fertilizer at Sunlight Tower
• Installation of water conservation devices at Sunlight Tower

Social Achievements

• Organized staff activities such as annual dinners and Christmas parties
• Second staff trip to Okinawa to celebrate 10th anniversary
• Participation in various community initiatives (e.g., Sunlight Little Ironman Triathlon, Food Friend Action)
• Collaboration with ELCHK to organize a micro movie production program for teenagers
• Collaboration with ELCHK to launch “Dream in Action – Innovative Stalls” program
• Collaboration with Tseung Kwan O Integrated Social Service Centre to launch “Go Green! Sunlight @ Love 2017”

Governance Achievements

• Establishment of Corporate Social Responsibility Committee (CSRC) in 2012
• Adherence to stringent anti-corruption policies and measures
• Implementation of Anti-Money Laundering Policy and Policy of Reporting of Irregularity
• Compliance with local regulations and standards related to employment and labor practices

Climate Goals & Targets

Environmental Challenges

• Waste disposal challenges in Hong Kong
• Need to mitigate the impacts of climate change
• Rising interest in ESG-related information

Mitigation Strategies

• Active waste reduction and management initiatives
• Energy efficiency enhancement measures (e.g., retrofitting, system upgrades)
• Promotion of energy awareness among staff and tenants
• Implementation of effective governance structure to address sustainability issues

Supply Chain Management

Supplier Audits: Regular review and evaluation of approved suppliers

Responsible Procurement

• Procedures and guidelines in place for supplier selection

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ESG Reporting Guide (2015) issued by the Stock Exchange

Certifications: BEAM Plus V1.2 for Existing Buildings (Platinum) - Sunlight Tower

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• BEAM Plus Platinum rating for Sunlight Tower
• Other awards listed on page 033

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Achieved 19% power consumption savings at MCPI through chiller plant replacement.
• Installed LED lights and motion sensors in several buildings to improve energy efficiency.
• Provided eco-friendly umbrella dryers at Sunlight Tower and set up recycling points at MCPI.
• Installed hand dryers in Sunlight Tower lavatories to reduce paper towel usage.
• Reduced water consumption by 1.0% compared to FY2017/18.

Social Achievements

• Refurbished staff pantry at Sunlight Tower to enhance employee comfort and interaction.
• Offered flexible work hour arrangements and other employee wellness initiatives.
• Organized staff engagement activities (annual dinners, overseas trips, etc.).
• Conducted over 2,300 hours of training, averaging 16 hours per employee.
• Supported various community initiatives (e.g., “10 Tonne PET Bottle Collection Challenge”, “Bring a Book and Share”, “Step Out for Children”, “Up & Play”, “Sunlight Unplug Day & Camp”, Village Casserole Feast, FOOD-CO Save & Share, Mobile Blood Donation Service).

Governance Achievements

• Strengthened the functions of the Corporate Social Responsibility Committee (CSRC).
• Established clear channels, protections, and guidance on reporting possible improprieties.
• Implemented anti-corruption and whistle-blowing policies.
• Strictly complied with relevant laws and regulations related to employment and labor practices.
• Maintained high ethical standards and integrity in daily operations.

Climate Goals & Targets

Environmental Challenges

• Increasing burden on Hong Kong’s landfills.
• Need to further strengthen communication channels between staff and management.

Mitigation Strategies

• Implemented waste management practices (recycling programs, eco-friendly alternatives).
• Exploring the possibility of setting up more communication channels to enhance staff engagement.

Supply Chain Management

Responsible Procurement

• Regular engagement with key suppliers to ensure quality services.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix 27 of the Rules Governing the Listing of Securities on the Stock Exchange)

Awards & Recognition

• Corporate Environmental Leadership Awards 2018
• Energy Saving Charter 2018 and 4Ts Charter
• Green Office Award Labelling Scheme (GOALS)
• World Green Organisation Hong Kong Awards for Environmental Excellence
• Hong Kong Green Organisation Certification
• Indoor Air Quality Certificate
• Quality Water Supply Scheme for Buildings
• The HKIFM Excellence in Facility Management Award 2018
• Caring Company
• Good MPF Employer
• Happy Company
• Sustainable Business Award 2018

Environmental Metrics

ESG Focus Areas

• Green buildings
• Energy and carbon emissions
• Waste and water
• Climate change
• Tenant satisfaction and well-being
• Community investment
• Supply chain management
• Sustainable financing
• Strategic corporate-NGO partnership
• Employee well-being
• Health and safety
• Training and development

Environmental Achievements

• Launched initiative for replacing obsolete air conditioning units with energy-efficient models
• Linked up two existing chiller plant systems at SSC for higher energy efficiency
• Planning for installing solar panel systems at SSC and On Loong Commercial Building
• Set up plastic umbrella bag recycling points to reduce plastic waste
• Installed hand dryers in lavatories to save paper towels
• Collaborated with environmental groups on festival food recycling campaigns
• Implemented various water-saving measures, including installation of water-efficient fixtures

Social Achievements

• Implemented a number of initiatives such as home office and split-team arrangement to safeguard employee well-being during COVID-19
• Provided lunch and tea refreshment, casual wear on Fridays, seasonal holiday celebrations and other leisure activities
• Offered flexible working hours
• Provided annual medical check-up subsidy
• Donated 1,000 Sunlight Care Packs to elderly and underprivileged communities
• Organized Cantonese opera appreciation session for elderly with tenant participation
• Donated warm clothes to Sowers Action’s Sending Love 2019 Campaign
• Participated in the Community Chest Dress Casual Day

Governance Achievements

• Established an ESG Committee to devise a holistic sustainability strategy
• Upholds high standards of business ethics and integrity; zero tolerance for corruption and bribery
• Regular anti-corruption seminars held for employees
• Complied with laws and regulations relating to bribery, extortion, fraud and money laundering
• Secured a sustainability-linked loan

Climate Goals & Targets

Environmental Challenges

• Waste treatment in Hong Kong
• Escalating risks posed by climate change
• COVID-19 outbreak

Mitigation Strategies

• Encouraging tenants to reduce and recycle waste
• Planning to establish a climate change policy
• Implementing preventive measures at workplace and properties, including home office and split-team arrangements, and utilizing technology for work coordination
• Collaborating with community organizations to distribute anti-virus supplies
• Developing a mechanism to further monitor the quantity of waste generation

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Green procurement policy with environmental-friendly requirements (biodegradable, reusable, recyclable)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix 27 of the Rules Governing the Listing of Securities on the Stock Exchange)

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• HKIFM Excellence in Facility Management Awards 2019
• Hong Kong Green Organisation Certification
• Indoor Air Quality Certificate (Excellent Class)
• Computer & Communication Products Recycling Programme (Certificate of Appreciation)
• Corporate Environmental Leadership Award 2019
• Energy Saving Charter 2019
• Green Office Award Labelling Scheme (GOALS)
• World Green Organisation Green Pledge
• Wastewi$e Certificate (Basic Level)
• Quality Water Supply Scheme for Buildings – Flushing Water (Gold)
• Caring Company
• Good MPF Employer
• Happy Company

Environmental Metrics

ESG Focus Areas

• Green buildings
• Energy and carbon emissions
• Waste and water
• Climate change
• Tenant satisfaction and well-being
• Community investment
• Supply chain management
• Sustainable financing
• Strategic partnerships with NGOs
• Employee well-being
• Health and safety
• Training and development

Environmental Achievements

• Replaced all chillers at Strand 50 with energy-efficient models, aiming for at least 20% reduction in electricity usage.
• Installed solar lights at DSFC and Strand 50.
• Installation of solar panel systems at SSC in progress.

Social Achievements

• Launched a rental assistance scheme offering discounted rents to tenants with sustainability missions.
• Invested in staff development, health and safety, and workplace well-being.
• Organized online workshops for children from underprivileged families.
• Organized online training for tenants on improving indoor air quality.
• Provided face masks and COVID-19 testing kits to employees.

Governance Achievements

• Strengthened ESG framework by revamping sustainability-related policies and committing to 21 targets.
• Secured over HK$1.5 billion sustainable financing with interest margin tied to measurable sustainability targets.
• Developed a new climate change policy.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic presented unprecedented challenges to the real estate industry.
• Climate change creates disruptions to properties and the community.
• More stringent reporting and data requirements for energy usage and GHG emissions.

Mitigation Strategies

• Launched a rental assistance scheme for tenants.
• Invested in staff development, health and safety, and workplace well-being.
• Developed a new climate change policy and related targets to enhance readiness and mitigate physical and regulatory impacts.
• Conduct property enhancement initiatives to prevent and alleviate impacts due to extreme weather events.
• Enhanced reporting and data collection procedures through assistance from independent consultant.

Supply Chain Management

Supplier Audits: 275 suppliers in FY2020/21

Responsible Procurement

• Sustainable procurement policy integrating environmental and social considerations into procurement process.
• Seeking biodegradable, reusable, and recyclable alternatives for single-use products.
• Adopting FSC certified paper.

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency of extreme weather events (flooding, typhoons)

Transition Risks

• More stringent reporting and data requirements for energy usage and GHG emissions

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix 27 of the Rules Governing the Listing of Securities on the Stock Exchange)

Certifications: BEAM Plus Platinum (Dah Sing Financial Centre)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Corporate Environmental Leadership Award 2020
• Bank of China (Hong Kong) Green Office Award Labelling Scheme (GOALS)
• World Green Organisation Green Pledge
• Energywi$e Certificate (Basic Level)
• Wastewi$e Certificate (Basic Level)
• Hong Kong Green Shop Alliance (Certificate of Appreciation)
• Indoor Air Quality Certificate (Excellent Class)
• Indoor Air Quality Certificate (Good Class)
• Quality Water Supply Scheme for Buildings – Flushing Water (Gold)
• The HKIFM Excellence in Facility Management Awards 2020
• Caring Company
• Good MPF Employer
• Happy Company

Environmental Metrics

ESG Focus Areas

• Green buildings
• Health and safety
• Employee well-being
• Energy consumption
• Carbon emissions
• Waste management
• Water consumption
• Climate change
• Tenant satisfaction and well-being
• Supply chain management
• Sustainable financing
• Community investment

Environmental Achievements

• Seven properties (almost 80% of total GRA) awarded green building certifications (BEAM Plus).
• Reduced energy consumption by 18% and carbon emissions by 47%.
• Reduced water consumption by 14%.
• Diverted 6% of waste from landfill.
• Installed solar panels at SSC.
• Implemented IAQ sensors in SSC and MCPI.

Social Achievements

• Received Hong Kong Sustainability Award 2020/21 (Mid Cap), Special Recognition for Best Response to COVID-19, Special Recognition for Innovation, and Special Recognition for Outstanding Sustainability Initiatives.
• Conducted first annual employee satisfaction survey.
• Increased training hours per employee by 12.5%.
• Implemented work-from-home and split-team arrangements during COVID-19.
• Launched ESG bonus scheme.
• Overall tenant satisfaction rate of 98.4%.

Governance Achievements

• Established a three-tier top-down governance structure to manage ESG issues and performance.
• Sustainability-linked loans (SLLs) representing over 60% of total borrowings.
• No concluded legal cases regarding corrupt practices.

Climate Goals & Targets

Environmental Challenges

• Existing structures of some properties pose obstacles to installing additional green facilities.
• Increased intensity of extreme weather conditions may cause damage to buildings.
• Higher energy consumption to maintain comfortable temperatures during heatwaves.
• Changes in rainfall patterns may lead to flooding.
• More stringent government policies regarding climate change may increase operating costs.

Mitigation Strategies

• Upgrading existing building facilities to more resource-efficient models.
• Implementing green procurement principles.
• Conducting energy and carbon audits, lighting simulation, acoustic measurement, and freshwater quality measurement.
• Planning to launch a program to conduct routine technical building and water assessments.
• Asset enhancement initiatives to prevent and alleviate impacts from extreme weather events.
• Regular reviews and analyses of local and international reporting requirements.
• Improving portfolio’s environmental performance with building enhancement works and green management practices.

Supply Chain Management

Supplier Audits: 274 suppliers; supplier self-assessment questionnaires and regular performance evaluations.

Responsible Procurement

• Sustainable procurement policy
• Green procurement guideline
• Preference for suppliers committed to occupational health and safety and environmental management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Heatwaves
• Flooding

Transition Risks

• Stringent government policies

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: HKEX’s ESG Reporting Guide

Certifications: BEAM Plus

Third-party Assurance: British Standards Institution

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Hong Kong Sustainability Award 2020/21 (Mid Cap)
• Special Recognition for Best Response to COVID-19
• Special Recognition for Innovation
• Special Recognition for Outstanding Sustainability Initiatives
• BEAM Plus Platinum Rating
• BEAM Plus Excellent Grade
• Indoor Air Quality Certificates (Excellent & Good Class)
• The HKIFM Excellence in Facility Management Awards 2021
• Caring Company
• Good MPF Employer
• Happy Company

Environmental Metrics

ESG Focus Areas

• Climate change
• Green buildings
• Technology and innovation
• Energy and carbon emissions
• Waste and water
• Employee well-being
• Health and safety
• Training and development
• Sustainable finance
• Community investment
• Tenant satisfaction and well-being
• Supply chain management

Environmental Achievements

• Reduced energy consumption by 18% and carbon emissions by 48%
• Reduced water consumption by 23%
• Diverted 6% waste from landfill
• 80% of properties obtained green building certifications
• Conducted carbon audit at DSFC
• Installed solar panels at SSC and KWP
• Replaced over 30% of total split-type air-conditioning units with energy-efficient ones
• Installed LED lighting in all wholly-owned properties
• Adopted an intelligent lighting system in the lobby of DSFC

Social Achievements

• Increased training hours per employee by 69%
• Achieved an 82% response rate in the annual employee satisfaction survey, with over 90% overall satisfaction
• Launched a new wellness centre – “The Well” at DSFC
• Organized staff engagement and reconnection activities
• Offered flexible working hours and work from home options
• Organized ESG training sessions for employees at different levels
• Implemented a comprehensive health and safety policy
• Conducted regular safety inspections and arranged in-house training courses on workplace safety and stress management workshops
• Achieved 100% satisfaction rate in ‘Service of Our Staff’ for six directly-managed properties
• Average of 95% tenant satisfaction with services

Governance Achievements

• Secured two new sustainability-linked loans (SLLs), increasing the proportion of SLLs to Sunlight REIT’s total borrowings to approximately 70%
• Established a three-tier governance structure for sustainability management (Board, ESG Committee, CSR Committee)
• Implemented anti-corruption and anti-bribery policies and training programs
• No concluded legal cases regarding corruption, bribery, extortion, fraud and money laundering

Climate Goals & Targets

Environmental Challenges

• Climate change related risks (extreme weather, increased energy consumption, stringent sustainability policies, market shifts)
• Waste management challenges in a high-density urban environment
• Maintaining high hygiene standards in a post-pandemic era

Mitigation Strategies

• Monitoring potential water leakage, conducting training on sustainable finance and climate change, regularly reviewing international standards, implementing asset enhancement initiatives, enhancing portfolio environmental performance, utilizing proptech to identify physical risks and improve operational efficiency, actively engaging in planning work towards the adoption of the TCFD framework
• Implementing the 3R approach (Reduce, Reuse, Recycle), installing additional recycle bins, collecting and analyzing data through proptech, exploring ways to extend recycling practices to other properties
• Implementing IAQ management policy, deploying UV-C disinfection robots, frequent sanitization

Supply Chain Management

Supplier Audits: 274 suppliers, self-assessment questionnaires and regular performance evaluations

Responsible Procurement

• Procurement policy
• Rigorous supplier selection procedures
• Prioritization of environmentally responsible products and services
• Revised sustainable procurement guidelines

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Increased energy consumption during heatwaves
• Flooding

Transition Risks

• Stringent sustainability policy requirements
• Market shifts towards green alternatives

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRESB, TCFD (in progress)

Certifications: ISO 14046, ISO 14064

Third-party Assurance: British Standards Institution

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 2022 GRESB Real Estate Assessment – Two-Star Rating
• Hong Kong Sustainability Award 2022 – Distinction Award
• HKIRA 9th Investor Relations Awards 2023 – Best ESG (E)
• HKQAA Green and Sustainable Finance Awards 2022 – Outstanding Award for Green and Sustainable Loan Issuer
• HKQAA Green and Sustainable Finance Awards 2022 – Pioneering Organisation in ESG Disclosure Enhancement
• Numerous other awards related to green building certifications, energy efficiency, and community engagement