MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Corporate Risk Management Our Corporate Risk Register (“CRR”) incorporates ESG-related risks, such as climate-related risks. We have also integrated SD and ESG factors into our corporate risk analysis. In 2022, we began digitalising the CRR dashboard and risk scoring model. The new digitalised CRR platform offers a standard template for updating risk details, risk scoring and risk mitigation measures, making benchmarking across the Swire Group easier. In the next phase, we plan to optimise the system and the reporting protocol. Swire Properties’ management will continue to monitor and conduct regular review of risks and the effectiveness of mitigation strategies. External risk advisors will also be regularly consulted for their risk management experience, allowing us to keep abreast of industry best practices. Green Financing Swire Properties is committed to integrating sustainability considerations into our financing mechanisms. By obtaining green financing, we reaffirm our commitment to sustainable development, and to designing and developing sustainable projects that improve the wellbeing of building occupants and local communities. Beginning in 2018, Swire Properties launched various green financing mechanisms to fund green building developments and other projects. These have included our first green bond, issued in January 2018, and our first sustainability-linked loan, obtained in July 2019, the interest rate of which is indexed against improvements in the Company’s year-on-year ESG performance. Since the launch of these mechanisms, Swire Properties has received reductions in the interest rates of our signed sustainability-linked loans by achieving predetermined sustainability-linked performance targets. In 2022, we secured sustainability-linked loan facilities totalling HKD11.8 billion. As of 31 December 2022, approximately 60% of our bond and loan facilities are from such green financing instruments as green bonds, sustainability-linked loans and green loans. We also continued to update our investors and analysts about our SD performance through a comprehensive ESG webinar and question-and-answer session. In 2023, we issued our fifth annual Green Finance Report 2022, which provides information on projects funded by the green bonds and the green loan and their estimated quantitative environmental impacts, including energy and water savings, renewable energy generation and wastewater management impacts. SUSTAINABLE DEVELOPMENT REPORT 2022 23