MENU PLACES PEOPLE PARTNERS PEPERRFOFORRMMAANNCCEE PERFORMANCE ((ENENVVIIRROONNMENMENTT)) (ECONOMIC) Performance (Environment) Policies 2022 Progress Profile of Environmental Impacts Climate Change Energy Resource and Circularity Water Biodiversity Occupant Wellbeing Building/Asset Investments Energy GRI Swire Properties strives to continually reduce the consumption of energy in our Hong Kong and Chinese 302 Mainland portfolios and in our hotel operations. In 2022, we adopted a variety of technologies and HKEX strategies to achieve this objective. Aspect A4 KPI A1.5, A2.3, Some of our properties generate renewable energy on-site, using it for operations and, in some cases, A3.1 feeding power back into the electricity grid. The relevant SDG is: SDG 7 Ensuring access to reliable and sustainable energy. Integrated Photovoltaics, Energy Storage, Direct Current and Flexible (“PEDF”) Power System As our capacity to generate renewable energy on-site and the grid’s renewable energy supply is increasing, there is a growing need to explore more efficient ways to utilise the energy that is produced. Most of our on-site renewable energy are photovoltaic systems, which supply direct current (“DC”). Coupled with increasing on-site DC equipment, using a power distribution system which runs on DC instead of alternating current (“AC”) can reduce energy loss incurred between AC and DC conversions. Integration with DC-operated battery storage system adds flexibility to the building’s power demand control, as well as maximising the capture of variable grid provided solar and wind power supply, which is weather and time dependent and not directly matching with building power demand An integrated Photovoltaics, Energy Storage, Direct Current, and Flexible Power System (PEDF) can generate an estimated 5-10% in energy reduction. PEDF is also a solution being promoted by the Chinese government to accelerate the optimisation of building energy consumption. This solution is mentioned in the “Action Plan for Carbon Dioxide Peaking before 2030” (published October 2021). SUSTAINABLE DEVELOPMENT REPORT 2022 190