MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Integrating SD into our Business Operations Employee Engagement Support from our employees is vital to the success of our SD 2030 Strategy. In 2018, our performance development review system was updated to engage employees in our SD Strategy on a deeper level. Since then, our office employees have continued to align their annual performance goals with each Pillar and the Company’s SD vision. We have also established corporate SD performance metrics that are linked to variable compensation for our Chief Executive and the general managers of our portfolios. The Chief Executive has performance targets that are linked to health and safety throughout the Company’s operations, while the general managers’ performance targets relate to energy management in their respective portfolios. Business Integration and Budgeting In 2022, we continued to implement SD initiatives in our day-to-day operations and decision- making at both the asset and functional levels of all our major business units in Hong Kong and the Chinese Mainland. All our major business units now incorporate SD considerations into their annual budgets and share proposed budget allocations with the relevant SD Working Groups to ensure adequate resources are made available to realise our SD 2030 targets. The budgets are reviewed and approved by the Board. In 2023, Swire Properties will pilot the use of internal carbon pricing (“ICP”) to determine the potential impacts of carbon emissions from our investments, quantify carbon risks to our business operations It will take place as an internal carbon fee which links each unit of CO2 emissions to a fixed cost, allowing better reallocation of capital towards low-carbon investment and activities. A total of HKD 3,159 million has been budgeted as the future three-year (2023 to 2025) forecast expenditure for climate-related projects, including funds generated from ICP. SUSTAINABLE DEVELOPMENT REPORT 2022 22