Climate Change Data

Sun Hung Kai Properties Limited (SHKP)

Climate Impact & Sustainability Data (2022-07 to 2023-06, 2023-07 to 2024-06)

Reporting Period: 2022-07 to 2023-06

Environmental Metrics

Total Carbon Emissions:266,658 tonnes CO2e (2022/23)
Scope 1 Emissions:45,827 tonnes CO2e (2022/23)
Scope 2 Emissions:210,896 tonnes CO2e (2022/23)
Scope 3 Emissions:209 tonnes CO2e (2022/23)
Renewable Energy Share:Not disclosed
Total Energy Consumption:2,531,698 GJ (2022/23)
Water Consumption:2,711,134 m3 (2022/23)
Waste Generated:252,287 tonnes (2022/23)
Carbon Intensity:Reduced GHG emissions intensity (scope 1 and 2) since 2019/20.

ESG Focus Areas

  • Environment
  • People
  • Customers
  • Supply Chain
  • Community

Environmental Achievements

  • Achieved LEED Platinum certification for four flagship commercial buildings (ICC, Sun Hung Kai Centre, One IFC, and Two IFC)
  • Earned 122 green-building-related certificates in Hong Kong as of June 2023
  • Diverted around 91.8% of construction waste
  • Significant reduction of around 27.1% in scope 1 and 2 GHG emissions intensity since 2019/20
  • Significant reduction of around 8.9% in electricity consumption intensity since 2019/20
  • Reduction of around 2.8% in water consumption intensity since 2019/20
  • Installed 13,800+ solar panels at 51 buildings and two construction sites as of June 2023

Social Achievements

  • Updated Code of Conduct, Environmental Policy, Group Sustainability Policy, Health and Safety Policy, and Supplier Code of Conduct
  • Established new policies for Stakeholder Engagement and Cybersecurity
  • Launched Hong Kong’s first bonus points-redeemable super-fast EV charging service in SHKP shopping malls
  • Offered extensive training to management and employees on ESG-related topics
  • Achieved 32.2% female representation at management level
  • Provided 14 weeks of fully paid maternity leave and up to five days of fully paid paternity leave

Governance Achievements

  • Updated Code of Conduct, Environmental Policy, Group Sustainability Policy, Health and Safety Policy, and Supplier Code of Conduct
  • Established new policies for Stakeholder Engagement and Cybersecurity
  • Conducted a detailed climate risk assessment with scenario analysis
  • Strengthened climate-related disclosures based on the TCFD framework
  • Issued two sustainability-linked loans (SLL) with a total worth of around HK$29.4 billion

Climate Goals & Targets

Long-term Goals:
  • Net-zero carbon commitment (strategy under study)
Medium-term Goals:
  • Achieve 87% LEED Gold or Platinum ratings for core completed office buildings by 2025/26
Short-term Goals:
  • Reduce scope 1 and 2 GHG emissions intensity by 25% by 2029/30
  • Reduce electricity consumption intensity by 13% by 2029/30
  • Reduce water use intensity by 5% by 2029/30
  • Divert at least 70% of construction waste by 2029/30

Environmental Challenges

  • Climate change (extreme weather, stricter policies and regulations)
  • Ethics and integrity breaches
  • Environmental compliance issues
  • Health and safety incidents
  • Supply chain disruptions
Mitigation Strategies
  • Incorporate climate-resilient building features and formulate adaptation plans
  • Formulate decarbonization strategies
  • Disclose climate management in accordance with TCFD recommendations
  • Abide by regulations and standards in Code of Conduct and Supplier Code of Conduct
  • Provide training on ethical standards and anti-corruption practices
  • Formulate Cybersecurity Policy
  • Update environmental policies
  • Implement ISO 14001 and ISO 45001 management systems
  • Use multiple sourcing strategies
  • Conduct inspections and assess the sustainability performance of suppliers

Supply Chain Management

Supplier Audits: Annual assessments of suppliers and contractors; sustainability-related factors evaluated at least annually.

Responsible Procurement
  • Supplier Code of Conduct
  • Sustainable Building Policy
  • Green procurement policy
  • Prioritization of suppliers with environmental commitments (e.g., ISO 14001, BEAM Plus)

Climate-Related Risks & Opportunities

Physical Risks
  • Typhoons
  • Rainfall floods
  • River floods
  • Extreme heat
  • Drought
  • Landslides
  • Sea level rise
  • Snow melt
  • Wildfires
Transition Risks
  • Growing trend of adopting energy-efficient and low-carbon technology
  • Rising adoption of renewable energy
  • Stricter building regulations
  • Emerging regulations on carbon pricing
  • Rising market demand for green buildings
  • Rising consumer preference for sustainable living
Opportunities
  • Development of energy-efficient products
  • Investment in low-carbon technologies
  • Expansion of green building portfolio
  • Growth of green market

Reporting Standards

Frameworks Used: HKEx ESG Guide, GRI Standards 2021, UNGC

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

Third-party Assurance: British Standards Institution

UN Sustainable Development Goals

  • Goal 3
  • Goal 4
  • Goal 7
  • Goal 8
  • Goal 9
  • Goal 11
  • Goal 12
  • Goal 13

Initiatives mapped to relevant SDGs; details provided in the report.

Sustainable Products & Innovation

  • Green building materials
  • Energy-efficient technologies
  • Smart building management systems

Awards & Recognition

  • Constituent member of Hang Seng Corporate Sustainability Index and FTSE4Good Index series
  • MSCI ESG Ratings 'A'
  • Listed in S&P Global Sustainability Yearbook 2023 and S&P Sustainability Yearbook (China)
  • Numerous other awards listed in Appendix I

Reporting Period: 2023-07 to 2024-06

Environmental Metrics

Total Carbon Emissions:2,050,935 tonnes CO2e
Scope 1 Emissions:43,835 tonnes CO2e
Scope 2 Emissions:205,935 tonnes CO2e
Scope 3 Emissions:1,774,722 tonnes CO2e
Total Energy Consumption:2,465,021 GJ
Water Consumption:3,213,323 m3
Waste Generated:213,506 tonnes

ESG Focus Areas

  • Environment
  • People
  • Customers
  • Supply Chain
  • Community

Environmental Achievements

  • Earned 150 green-building-related certifications for 123 projects in Hong Kong
  • Installed 16,500+ solar panels at 62 managed buildings and 2 construction sites
  • Developed and disclosed the first scope 3 emissions inventory
  • Installed 1,100+ EV charging facilities at sites run by property management subsidiaries
  • Achieved FY2029/30 greenhouse gas emissions target

Social Achievements

  • Became a signatory of the United Nations Global Compact
  • 33.3% female representation at management level
  • ~302,000 hours of ESG-related training delivered
  • ~12.3% of construction sites and managed properties earned ISO 45001 certification

Governance Achievements

  • Enhanced materiality analysis approach to present material topics through double materiality
  • Incorporated ESG risks into overall risk management
  • Implemented key strategies to cultivate a strong risk culture

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050
Medium-term Goals:
  • Achieve 87% of managed properties certified with ISO 14001 or ISO 50001 by end of FY2025/26
Short-term Goals:
  • Reduce scope 1 and 2 GHG emissions intensity of EOC-monitored buildings by 35% by FY2029/30

Environmental Challenges

  • Higher maintenance costs and loss of revenue due to operations disruptions by extreme weather
  • Increase in operating costs due to stricter global and local policies and regulations
  • Reputational damage and negative financial consequences under cyber-attacks and data breaches
  • Reputational damage and negative financial consequences under integrity breaches and money laundering
  • Reputational damage and negative financial consequences as a result of environmental non-compliance
  • Occurrence of work-related injuries or fatalities due to poor health and safety management
  • Supply chain disruptions due to social or environmental factors
Mitigation Strategies
  • Address physical risks by incorporating climate-resilient building features and developing adaptation plans in project development
  • Transit to low-carbon operations with decarbonization strategies
  • Raise awareness of cybersecurity risks by establishing Cybersecurity Policy, conducting assessment and providing training
  • Comply with the regulations and the standards stipulated in the Code of Conduct and Supplier Code of Conduct
  • Meet the latest standards and regulations by regular review and update of our environmental policies
  • Implement ISO 45001 Occupational Health and Safety Management Systems
  • Use multiple sourcing strategies to avoid overreliance on any single source
  • Conduct inspections and assess the sustainability performance of suppliers based on the Sustainable Supply Chain Management Guideline

Supply Chain Management

Supplier Audits: 27 suppliers (100%) assessed via desk/on-site assessment

Responsible Procurement
  • Supplier Code of Conduct
  • Sustainable Building Policy
  • Green procurement policy
  • Sustainability-linked Supplier Payment Services programme

Climate-Related Risks & Opportunities

Physical Risks
  • Typhoon
  • Rainfall Flood
  • River Flood
  • Extreme Heat
  • Drought
  • Sea Level Rise
Transition Risks
  • Technology
  • Policy and Legal
  • Reputation and Market
Opportunities
  • Growing trend of adopting energy-efficient and low-carbon technology
  • Rising adoption of renewable energy
  • Rising market demand for green buildings
  • Rising consumer preference for sustainable living

Reporting Standards

Frameworks Used: ESG Guide, GRI Standards 2021, UNGC, IFRS S2, SASB Standards

Certifications: ISO 14001, ISO 45001, ISO 50001, ISO 27001, ISO 22000, ISO 9001, ISO 19650, ISO 41001, ISO 22301, ISO 10002, BEAM Plus, LEED, BREEAM, WELL

Third-party Assurance: British Standards Institution

UN Sustainable Development Goals

  • Goal 3
  • Goal 4
  • Goal 7
  • Goal 9
  • Goal 11
  • Goal 12
  • Goal 13
  • Goal 8

Explanation of alignment with SDGs in the report.

Sustainable Products & Innovation

  • Low-carbon concrete
  • Electric construction equipment

Awards & Recognition

  • Dow Jones Sustainability Asia Pacific Index
  • S&P Global Sustainability Yearbook 2024
  • S&P Global Sustainability Yearbook (China Edition) 2024
  • Morningstar Sustainalytics regional top-rated ESG performer
  • Hang Seng Corporate Sustainability Index
  • FTSE4Good Index Series
  • MSCI ESG Ratings 'A' rating
  • Numerous other awards listed in Appendix I