MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Chief Executive’s Message GRI 2-22 OUR JOURNEY TO NET-ZERO IS NOT OURS ALONE: supporting our stakeholders and our communities in their efforts to decarbonise is vital to the success of our common objectives. 2022 was a milestone year for Swire Properties as we celebrated 50 years of transformative placemaking and sustainable urban development. While the pandemic prevented us from hosting major events for most of the year, we were fortunate to end 2022 with a family day for our employees and our annual community White Christmas Street Fair in Taikoo Place. Our ongoing efforts to integrate sustainable development into every facet of our business are now being recognised globally. We were ranked first in Asia and fourth on the Dow Jones Sustainability Index (“DJSI”) among real estate companies worldwide. We maintained our Global Sector Leader position in the Mixed Use Developments category of the Global Real Estate Sustainability Benchmark (“GRESB”) for the sixth year in a row, and were ranked first on the Hang Seng Corporate Sustainability Index for the fifth consecutive year. In addition to giving us positive encouragement, this recognition motivates us to remain focused on realising of our SD 2030 Strategy. Our continuing journey towards net-zero The wider impacts of climate change are a growing concern to businesses worldwide. Increasing our climate resilience and proactively managing the associated risks is now a priority. While discussions at COP 27 in November 2022 highlighted the challenges of achieving net-zero decarbonisation targets, we remain committed to our 1.5°C-aligned science-based targets, paving the way to achieve net-zero by 2050. We continue to make excellent progress in tackling our Scope 1 and 2 emissions, achieving an absolute emissions reduction of 28% in 2022 compared to our 2019 baseline year. These gains have been enabled by our broad adoption of technology and innovation to reduce energy use and carbon emissions throughout our operations. Recognising the importance of data, I am particularly interested in the insights into energy saving generated by the rollout of our Cloud-Based Smart Energy Management Platform across our portfolios. This year, we integrated a pioneering machine-learning model into the platform that predicts cooling demand around the clock. The model was developed in partnership with a digital automation and energy management company and won a Gold Award and the Grand Prize at the “Global AI Challenge for Building Electrical and Mechanical Facilities” competition. We also signed an off-site renewable electricity purchase agreement for Taikoo Li Sanlitun, making this our third project in the Chinese Mainland to adopt sources of clean energy. We continue to explore renewable energy opportunities in our other projects. Creating value for our partners Our journey to net-zero is not ours alone: supporting our stakeholders and our communities in their efforts to decarbonise is vital to the success of our common objectives. We continue to collaborate with our suppliers and tenants as we track and monitor performance along the whole lifecycle of our buildings. SUSTAINABLE DEVELOPMENT REPORT 2022 3