Sustainable Development Report 2022
Table of Contents 03 Chief Executive’s Message 05 About this Report 05 Profile of Swire Properties Limited 11 SD 2030 Strategy 18 SD Governance 27 Materiality 33 SD in Action: Swire Hotels 49 79 124 156 240 Places People Partners Performance Performance (Environment) (Economic) 220 Climate-related Financial Disclosures 259 2025 and 2030 Targets 261 ESG Reporting Standards and Principles 266 Summary of Green Building Certifications 268 External Charters and Memberships 271 Awards and Certifications 278 Performance Data Summary 287 Assurance Report 290 Global Reporting Initiative Content Index 299 HKEX ESG Reporting Guide Index 305 ISSB Exposure Draft IFRS S2 Climate-related Disclosures Content Index We welcome your feedback on our sustainable development performance and reporting. You can contact us by email at sustainabledevelopment@ swireproperties.com or fill in the Feedback Form.
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
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) To address upstream carbon emissions during construction, we have worked with our partners to ensure that almost 100% of the concrete used at Two Taikoo Place, our latest development in Hong Kong, was certified low-carbon concrete. Accordingly, the development obtained the Grand Award in the New Building category (Projects Under Construction and/or Design - Commercial) at the 2021 Green Building Awards, organised by the Hong Kong Green Building Council (“HKGBC”) and the Professional Green Building Council. To limit our downstream impacts, we launched our Green Performance Pledge (“GPP”) in July 2022, a bespoke sustainability programme for office tenants. The GPP works closely with our tenants to measure and identify ways to reduce their energy, waste, and water consumption. Interest and uptake for the GPP has been overwhelmingly positive: 52 of our tenants, representing over 30% of the occupied lettable floor area of Swire Properties’ Hong Kong office portfolio, are already participating. Meanwhile, almost 70 food and beverage (“F&B”) tenants have joined our Green Kitchen Initiative, integrating sustainability features into their kitchen fit-outs and operations. In March 2023, we published our third Places Impact Report, featuring Taikoo Hui Guangzhou. Produced in partnership with the South China University of Technology, the report explores the socioeconomic impacts of our placemaking efforts and provides insights into the future role that Taikoo Hui Guangzhou may play in enhancing community vibrancy and building social cohesion. A thriving environment for our people People are critical to the implementation of our SD 2030 Strategy and to our overall success. We aspire to build an inclusive, supportive work environment where employees can thrive. This year, we were delighted to be included in the 2023 Bloomberg Gender-Equality Index, acknowledging the Company’s commitment to achieving gender equality. These positive impacts extend into our local communities in the form of our Community Ambassadors, who volunteered over 6,100 hours of their time this year, giving back to society through NGOs, social welfare initiatives and in many other valuable ways. Catalysing our transition to net-zero via green financing As at 31 December 2022, green financing accounted for approximately 60% of our current bond and loan facilities. This means that we have achieved our 2025 KPI of having a minimum of 50% of green financing three years ahead of schedule. In 2023, we begin piloting the use of internal carbon pricing (“ICP”) to accelerate our transition to a low- carbon economy. Taking the form of an internal carbon fee, the ICP will create an internal mechanism to allocate costs to our carbon emissions and set aside a special fund to increase our investment in decarbonisation projects. A word of thanks Today’s increasingly complex business landscape requires that we remain firmly committed to our vision and values. As we look ahead to the next 50 years, I want to take the opportunity to thank everyone who has worked with us over the years for your dedication, confidence and trust in Swire Properties. Our ambitions are high, but I am confident that we have the talent, spirit and experience to succeed. As we conclude a year full of challenges and celebrations and enter a new decade for Swire Properties, I am optimistic that working together with our outstanding teams and committed partners will help us continue to build and nurture great places that support sustainable, resilient and thriving communities. Chief Executive Tim Blackburn SUSTAINABLE DEVELOPMENT REPORT 2022 4
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) About this Report GRI 2-1, 2-3, 2-6 This report is the 15th sustainable development (“SD”) report of Swire Properties Limited (“Swire Properties” or “the Company”). The report covers the period from 1 January 2022 to 31 December 2022 and focuses on Swire Properties’ businesses, joint ventures and subsidiaries in property investment, property trading and hotel investment, where the Company has operational control. The report includes details of our SD vision and progress on the implementation of our SD 2030 Strategy during the past year. This report was published online in April of 2023. Profile of Swire Properties Limited Year of Ownership and legal form establishment Public company listed on the Main Board of the Stock Exchange 1972 of Hong Kong (Stock Code: 1972) – Swire Pacific Limited is the immediate holding company and major shareholder Core businesses Number of Property Property Hotel employees 6,400+ Investment Trading Investment Aggregate gross floor area (“GFA”) Underlying profit attributable to attributable to the Group* shareholders in 2022 29.9 million HKD8,706 million square feet (“sq ft”) 2021 HKD9,532 million *Data is valid as at 31 December 2022 and has been reproduced from the Swire Properties Annual Report 2022. About Us Headquartered in Hong Kong, Swire Properties is a leading developer, owner and operator of mixed-use, principally commercial properties in Hong Kong and the Chinese Mainland, with a presence in Miami, U.S.A. Creative Transformation captures what we do and how we do it. It underlines the creative mindset, original thinking and long-term approach that enables our employees to reach beyond the conventional and seek new perspectives. We strive to unlock the potential of places by creating vibrant destinations and stimulating further growth to produce sustainable value for our shareholders, our business partners and the people with whom we work. In 2022, Swire Properties celebrated our 50th anniversary. We honoured our original thinking during this milestone year through a theme of “ORIGINAL. ALWAYS.”. “ORIGINAL” captures our forward-looking, creative and innovative spirit, while “ALWAYS” refers to our long-term commitment over the decades and into the future. For further information on our key business strategies, operations and financial performance, please refer to the Swire Properties Annual Report 2022. SUSTAINABLE DEVELOPMENT REPORT 2022 5
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) SD Awards Global Leadership in Sustainability Benchmarks and Indices Our commitment to SD received further global recognition in 2022. We were ranked highly on several major SD-related benchmarks and indices. Dow Jones Sustainability World Index (“DJSI World”) – Top Fourth Globally, Number One in Asia Listed as a DJSI World constituent company since 2017 Listed as a DJSI Asia Pacific constituent company since 2015 In 2022, we raised our global ranking from seventh place overall to fourth place among the 940 companies assessed in the real estate industry. We were also the top ranked company in Asia for the second consecutive year, increasing our score in the Environmental dimension of the assessment from 94 to 96 (Score date: 16 December 2022), taking us from third in 2021 to second globally. Swire Properties achieved an ESG (“Environmental, Social and Governance”) score of 83/100 (Score date: 16 December 2022) on the 2022 S&P Global Corporate Sustainability Assessment, up from 79 in 2021. Global Real Estate Sustainability Benchmark (“GRESB”) – Global Sector Leader and Global Development Sector Leader for Mixed Use Developments Since 2017 We retained our Global Sector Leader title in the Mixed Use Developments category for the sixth year in a row. We were also recognised as the Global Development Sector Leader in the category for the third year in a row. In addition to our five-star rating on the benchmark, we also obtained the highest five-star rating and received an “A” rating in public disclosure for the sixth consecutive year. SUSTAINABLE DEVELOPMENT REPORT 2022 6
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Hang Seng Corporate Sustainability Index – Top Company Constituent of the Hang Seng Corporate Sustainability Index since 2015 Achieved the highest total score among the constituent companies and “AAA” rating since 2018 In Hong Kong, we topped the Hang Seng Corporate Sustainability Index for the fifth consecutive year, receiving the highest total score among all index constituents while maintaining an “AAA” sustainability rating – the highest possible grading. We were one of the only two companies to receive this rating among more than 500 assessed stocks. Swire Properties was also listed on the Hang Seng Environmental, Social and Governance (“ESG”) 50 Index for the third consecutive year, highlighting the Company’s position as an ESG leader in Hong Kong. Bloomberg Gender-Equality Index Became a member in 2023 Swire Properties responded to the Bloomberg Gender-Equality Index (“GEI”) for the first time and secured a position on the 2023 Bloomberg GEI member list, consisting of ourselves and 483 other companies. The index measures gender equality across five pillars: leadership and talent pipeline, equal pay and gender pay parity, inclusive culture, anti-sexual harassment policies and external brand. * Constituent since 2014 Included in the S&P Constituent since 2016 Achieved an Environmental, Global Sustainability Social and Governance Yearbook since 2017 (“ESG”) rating of “AAA” – Included in the S&P Global the highest possible rating Sustainability Yearbook since 2018 2023, with ESG score within 5% to 10% of the industry’s top-performing company. * Disclaimer: www.swireproperties.com/sd/awards/mscidisclaimer.html SUSTAINABLE DEVELOPMENT REPORT 2022 7
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) ASHRAE Technology Award Swire Properties was recognised for its outstanding achievements in the design and operation of energy efficient buildings at the 2023 ASHRAE Technology Award. Our project on retro- commissioning and the digital transformation of Cityplaza Mall won first place in the Commercial Buildings Existing Building Commissioning (“EBCx”) category. The award highlights our use of innovation and experimentation to continuously improve the energy efficiency of our operations. CIBSE Building Performance Awards 2023 In early 2023, our Cloud-based Smart Energy Platform won the Best Digital Innovation award at the CIBSE Building Performance Awards 2023, which recognises innovation that has made a significant contribution to digital engineering. The platform was commended for its exceptional ambition, scale and the fact that it can be applied to many properties and control building services systems. Swire Properties’ Reporting Awards Swire Properties’ Sustainable Development Report 2021 won the Best Environmental, Social and Governance Reporting Award in the Property Development and Investment category – the top award – while our Annual Report 2021 won a Bronze Award in the General category at the 2022 Best Annual Reports Awards by the Hong Kong Management Association (“HKMA”). The two accolades underscore our commitment to creating and maintaining effective and transparent communications for sustainable development and financial reporting to stakeholders. According to the judges’ report, Swire Properties produced a “materiality-driven report” with extensive coverage of our efforts to improve sustainability performance to withstand systemic climatic, social and economic stresses and volatility. SUSTAINABLE DEVELOPMENT REPORT 2022 8
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) At the Best Corporate Governance and ESG Awards 2022, organised by the Hong Kong Institute of Certified Public Accountants (“HKICPA”), Swire Properties also received the ESG Award in the Non- Hang Seng Index (Large Market Capitalisation) Category. For the second consecutive year, Swire Properties was the top performer among the 540 listed companies assessed. Our Sustainable Development Report 2021 received the Silver Award at the Occupational Safety and Health Annual Report Award. The award was presented to Swire Properties at the 21st Hong Kong Occupational Safety and Health Award organised by the Occupational Safety and Health Council, an award scheme that recognises organisations with excellence in the presentation of occupational safety and health performance and community development information in annual reports or sustainability reports. HKIHRM HR Excellence Awards At the Hong Kong Institute of Human Resource Management (“HKIHRM”) HR Excellence Awards 2021/2022, Swire Properties was the only company to win the Excellence Award for ESG in the Organisational category. These awards recognise organisations and individuals that achieve business success through outstanding people strategies and practices. The award is a symbol of our industry-leading efforts to integrate ESG and sustainability into our talent management and development capabilities to help our people reach their full potential in the safest, most ideal working environment. We also received a special award for our industry-leading COVID-19 response. SUSTAINABLE DEVELOPMENT REPORT 2022 9
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Green Building Award 2021 Swire Properties won the Pioneer Award in Green Building Leadership (Facilities Management) at the Green Building Awards 2021. We are now the only developer to have won the Pioneer Award in different Green Building Leadership subcategories in multiple years – we won in the Development subcategory in 2019 and took the Grand Award in 2016. Our newest Grade-A office tower, Two Taikoo Place, also won the Grand Award in the New Buildings Category: Projects Under Construction and/or Design – Commercial. This is the second building in Taikoo Place to obtain a Grand Award in the New Buildings Category, with One Taikoo Place winning it in 2019. 2022 RICS Awards Swire Properties won three top prizes at the 2022 RICS Awards Hong Kong and 2022 RICS Awards China. We were given the “Sustainability Award” for our decarbonisation efforts and our establishment of 1.5°C-aligned science-based targets that cover emissions from building operations including tenants and embodied carbon from new projects. The “Regeneration Project of the Year” was awarded to Taikoo Li Sanlitun West, while the Young Achiever of the Year award was given to Francis Lo, Senior Manager, Portfolio. Social Capital Builder Awards 2022 Swire Properties won the Social Capital and Sustainability Grand Award at the Social Capital Builder Awards 2022. These awards, given by the Community Investment and Inclusion Fund every two years, aim to encourage cross- sectoral collaboration among corporations and organisations to actively build social capital. SUSTAINABLE DEVELOPMENT REPORT 2022 10
For 50 years, Swire Properties has adopted, advocated and adhered to a philosophy of responsible development.
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) SD 2030 Strategy GRI 2-22 For 50 years, Swire Properties has adopted, HKEX advocated and adhered to a philosophy of responsible Mandatory development. Disclosure Requirement We are committed to operating in an environmentally, socially and economically responsible manner across all aspects of our business. In 2016, we introduced our SD vision to clearly articulate our direction: To be the leading sustainable development performer in our industry globally by 2030 In the same year, we formulated our SD 2030 Strategy to implement this SD vision. This strategy has helped us build our SD capability and has ensured that SD considerations are part of all our operations and business decisions. Our SD 2030 Strategy is built on five strategic pillars: Places, People, Partners, Performance (Environment) and Performance (Economic) (“the Pillars” or “Pillar”). SD 2030 is premised on a creative mindset of innovation and experimentation and promoted through communication and engagement. Places are at the heart of, and central to, accomplishing our SD 2030 Strategy. Places Through effective placemaking and long-term placekeeping, we aim to continue to transform the places in which we invest so as to create value, whilst retaining their character, supporting communities and enhancing people’s lives. Focus areas for Places: Vibrancy Livelihood Wellbeing Resilience SUSTAINABLE DEVELOPMENT REPORT 2022 12
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) The contributions of our employees are indispensable to our success. We aim to create an environment where our employees will be healthier, happier and more productive. We invest in our employees and provide People rewarding career paths so as to develop a diverse and industry-leading team. Focus areas for People: Talent Attraction Talent Rewards Occupational Diversity and Management Health and Safety Inclusion Volunteering Our business partners are crucial to the realisation of our SD 2030 Strategy. We aim to continue to develop long-term, mutually beneficial Partners relationships with our business partners and other key parties so as to improve our environmental, social and economic performance. Focus areas for Partners: Suppliers Tenants Customers Residential Owners Government and Occupiers Non-governmental, Joint Venture Non-profit Organisations Partners (“NGOs”) SUSTAINABLE DEVELOPMENT REPORT 2022 13
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) As a leading property developer, we are committed to building and managing our developments sustainably. We aim to continue to design, construct and manage high-quality Performance developments that contribute positively to the environment and the (Environment) communities in which we operate. Focus areas for Performance (Environment): Climate Change Energy Resource and Water Biodiversity Circularity Occupant Building/Asset Wellbeing Investments We believe that long-term value creation depends on the sustainable development of our business. We aim to deliver a sustainable economic performance coupled with Performance good corporate governance and high ethical standards. (Economic) Focus areas for Performance (Economic): Financial Green Financing Corporate Risk Disclosure and Performance Governance Management Communications SUSTAINABLE DEVELOPMENT REPORT 2022 14
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) SUSTAINABLE DEVELOPMENT (SD) 2030 STRATEGY: 2022 HIGHLIGHTS Performance Performance (Economic) People Our SD Vision: Partners (Environment) We aim to deliver sustainable economic performance We aim to create an environment where our employees We aim to continue to develop long-term, mutually We aim to continue to design, construct and manage high coupled with good corporate governance and high will be healthier, happier and more productive, to invest in To be the leading sustainable beneficial relationships with our business partners and quality developments that contribute positively to the ethical standards. our employees and to provide rewarding career paths so development performer in our other key parties so as to improve our environmental, communities in which we operate and the environment. as to develop a diverse and industry-leading team. social and economic performance. FINANCIAL PERFORMANCE TALENT MANAGEMENT industry globally by 2030. SUPPLIERS CLIMATE CHANGE HKD 8,706 million in underlying profit attributable to 2025 KPI 2022 Progress To achieve this vision, we have formulated our SD 2025 KPI 2022 Progress shareholders A 25% increase in training ~154,000 training hours 2030 Strategy, which is built on five strategic pillars 25% of products and 17% of products and 2 4 shall be hours/employee/year delivered and embraces the spirit of Creative Transformation. It services purchased services purchased were GREEN FINANCING 5 24 training hours/ is underpinned by our creative mindset of innovation sustainable sustainable 2025 KPI 2022 Progress ( 97%) 2025 KPI 2022 Progress employee/year and experimentation, and promoted through HKD 1,477 million spent Absolute GHG emissions (Scope 1 and Scope 2): Achieve a minimum of ~60% of current bond and on sustainable procurement communication and engagement. 25%8 28% 50% of bond and loan loan facilities are facilities from green from green financing OCCUPATIONAL HEALTH AND SAFETY Reduce 5-year rolling Achieved a reduction of average of accident 64% in accident rate 2030 KPI 2022 Progress financing 2025 KPI 2022 Progress 6 Value chain GHG emissions rate in our Hong Kong CORPORATE GOVERNANCE Maintain Lost Time Injury Rate (“LTIR”) development projects by (Scope 3 - Downstream Leased Assets): Places Non-hotel operations: Non-hotel operations: 50% 9 2025 KPI 2022 Progress 28% per square metre 40% ≤1.2 0.57 Maintain no less than 30% 31% of our Board Through effective placemaking and long-term placekeeping, ~100% concrete used in Two Taikoo Place are Platinum- Value chain GHG emissions (Scope 3 - Capital Goods): of female representation on positions are held by female Hotel operations: Hotel operations: we aim to continue to transform the places in which we invest 10 ≤2.0 1.56 so as to create value, whilst retaining their character, certified under the Construction Industry Council Green 25% per square metre 17% our Board members Product Certification supporting communities and enhancing people’s lives. DISCLOSURE AND COMMUNICATIONS DIVERSITY & INCLUSION IMPACT REPORTING TENANTS ENERGY Published our fifth set of climate-related financial First time inclusion in the 2023 Bloomberg Published our third Places Impact Report for Taikoo Hui Officially rolled out the Green Performance 2025 KPI 2022 Progress disclosures as per TCFD recommendations Gender-Equality Index (“GEI”) Guangzhou, “The Creative Transformation of Taikoo Hui Pledge (“GPP”) in HK and Chinese Mainland to 11 Reduction of electricity use intensity Guangzhou”, in conjunction with South China University deepen landlord-tenant partnerships on sustainability 12 12 Hong Kong Portfolio Hong Kong Portfolio SD information is disclosed in accordance with the of Technology. The report uses our Places Impact and ESG 20%8 15% requirements of major global sustainability benchmarks Framework for assessing, measuring and reporting on 2025 KPI 2022 Progress 2025 KPI 2022 Progress Chinese Mainland Chinese Mainland the environmental, social and economic impacts of this 12 12 Portfolio Portfolio Maintain a female 50% of tenants in our GPP launched with 8 2 40.2% of the workforce development 13% 9% 7 sign representation of no less are female office portfolios 52 tenants, which covered 40% in the workforce the Green Performance 37.9% of tenants in our than RESOURCE AND CIRCULARITY Pledge to jointly office portfolio in Hong Maintain a gender balance 38.3% of senior improve environmental Kong 2025 KPI 2022 Progress Ranked 4th globally and Global Sector Leader – in senior management management positions performance No. 1 in Asia, 6th consecutive year are held by women WELLNESS Commercial waste diversion rate Member of the World Index – 12 12 Hong Kong Portfolio Hong Kong Portfolio 6th consecutive year Maintain gender pay ratio Gender pay ratio (female to Taikoo Hui Guangzhou obtained WELL Platinum 76 F&B tenants in Hong Kong and the Recognised 30% 25% 1 : 1 3: 1 : 0.92 at male) certification, recognising the development’s positive Chinese Mainland with Green Kitchen Awards Chinese Mainland Chinese Mainland impacts on human health and wellbeing 12 12 1 Portfolio Portfolio The Smart Reusable Cup System at Taikoo Place expanded 40% 45% to 10 F&B tenants, and avoided the disposal of over 16,800 single-use cups since the programme’s launch BUILDING/ASSET INVESTMENT Ranked No. 1 for 5th “AAA” rating consecutive year, 2025 KPI 2022 Progress “AAA” rating VOLUNTEERING DIGITAL CONNECTIVITY 13 100% of wholly-owned 100% of new Our Community Ambassador Programme contributed Two Taikoo Place and Six Pacific Place became the first 13 new development projects development projects >6,100 volunteer service hours, supporting 73 buildings in Hong Kong to be both WiredScore and to achieve the highest achieved the highest ratings activities SmartScore Platinum certified environmental building 93% of wholly-owned assessment scheme rating 13 existing developments achieved the highest ratings 1 Disclaimer: www.swireproperties.com/sd/awards/mscidisclaimer.html 6 Using 2015-2019 (5-year average) as baseline. Accidental rate represents the number of reportable accidents per 1,000 contractor workers. It is calculated 10 Compared to baseline year 2016-2018. 2 Compared to the baseline year of 2016. as the total number of reportable accidents multiplied by 1,000 and then divided by average daily number of contractor workers on-site. 11 The 2025 KPIs under Energy have been updated per our approved 1.5°C-aligned SBT. Energy Use Intensity has been renamed to “Electricity Use Intensity” 3 In 2022, gender pay ratio is calculated based on a non-weighed average methodology. 7 Measured by occupied lettable floor area (“LFA”) of office portfolios at 100% basis comprising of Taikoo Place and Pacific Place in Hong Kong and Taikoo in 2022 to reflect the use of electricity for the provision of shared services for and in the common parts of our buildings. The actual scope of this KPI remains 4 For wholly-owned investment portfolios. Hui Guangzhou. unchanged. 5 Products that meet specific sustainability criteria such as green certification or accreditation by reputable, independent third parties. 8 Compared to the 2019 baseline. 12 Hong Kong portfolio and Chinese Mainland portfolio refer to our office and retail portfolios and hotels in Hong Kong and the Chinese Mainland respectively. 9 Compared to the 2018 baseline. 13 Joint venture projects and trading properties are excluded. SUSTAINABLE DEVELOPMENT REPORT 2022 15
MENUPLACESPEOPLEPARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) SUSTAINABLE DEVELOPMENT (SD) 2030 STRATEGY: 2022 HIGHLIGHTS Performance Performance (Economic)PeopleOur SD Vision: Partners (Environment) We aim to deliver sustainable economic performance We aim to create an environment where our employees We aim to continue to develop long-term, mutually We aim to continue to design, construct and manage high coupled with good corporate governance and high will be healthier, happier and more productive, to invest in To be the leading sustainable beneficial relationships with our business partners and quality developments that contribute positively to the ethical standards.our employees and to provide rewarding career paths so development performer in our other key parties so as to improve our environmental, communities in which we operate and the environment. as to develop a diverse and industry-leading team. social and economic performance. FINANCIAL PERFORMANCETALENT MANAGEMENTindustry globally by 2030. SUPPLIERS CLIMATE CHANGE HKD 8,706 million in underlying profit attributable to 2025 KPI2022 ProgressTo achieve this vision, we have formulated our SD 2025 KPI2022 Progress shareholdersA 25% increase in training ~154,000 training hours 2030 Strategy, which is built on five strategic pillars 25% of products and 17% of products and 2 4 shall be hours/employee/yeardeliveredand embraces the spirit of Creative Transformation. It services purchased services purchased were GREEN FINANCING 5 24 training hours/is underpinned by our creative mindset of innovation sustainable sustainable 2025 KPI2022 Progress( 97%) 2025 KPI 2022 Progress employee/year and experimentation, and promoted through HKD 1,477 million spent Absolute GHG emissions (Scope 1 and Scope 2): Achieve a minimum of ~60% of current bond and on sustainable procurement communication and engagement. 25%8 28% 50% of bond and loan loan facilities are facilities from green from green financingOCCUPATIONAL HEALTH AND SAFETYReduce 5-year rolling Achieved a reduction of average of accident 64% in accident rate 2030 KPI 2022 Progress financing2025 KPI2022 Progress rate6 in our Hong Kong Value chain GHG emissions CORPORATE GOVERNANCEMaintain Lost Time Injury Rate (“LTIR”) development projects by (Scope 3 - Downstream Leased Assets): Places Non-hotel operations: Non-hotel operations: 50% 9 2025 KPI2022 Progress 28% per square metre 40% ≤1.2 0.57 Maintain no less than 30% 31% of our Board Through effective placemaking and long-term placekeeping, ~100% concrete used in Two Taikoo Place are Platinum- Value chain GHG emissions (Scope 3 - Capital Goods): of female representation on positions are held by female Hotel operations: Hotel operations: we aim to continue to transform the places in which we invest 10 ≤2.0 1.56 so as to create value, whilst retaining their character, certified under the Construction Industry Council Green 25% per square metre 17% our Boardmembers Product Certification supporting communities and enhancing people’s lives. DISCLOSURE AND COMMUNICATIONSDIVERSITY & INCLUSIONIMPACT REPORTING TENANTS ENERGY Published our fifth set of climate-related financial First time inclusion in the 2023 Bloomberg Published our third Places Impact Report for Taikoo Hui Officially rolled out the Green Performance 2025 KPI 2022 Progress disclosures as per TCFD recommendationsGender-Equality Index (“GEI”)Guangzhou, “The Creative Transformation of Taikoo Hui Pledge (“GPP”) in HK and Chinese Mainland to 11 Reduction of electricity use intensity Guangzhou”, in conjunction with South China University deepen landlord-tenant partnerships on sustainability 12 12 Hong Kong Portfolio Hong Kong Portfolio SD information is disclosed in accordance with the of Technology. The report uses our Places Impact and ESG 8 20% 15% requirements of major global sustainability benchmarksFramework for assessing, measuring and reporting on 2025 KPI2022 Progress 2025 KPI 2022 Progress Chinese Mainland Chinese Mainland the environmental, social and economic impacts of this 12 12 Portfolio Portfolio Maintain a female 50% of tenants in our GPP launched with 8 2 40.2% of the workforce development 13% 9% 7 sign representation of no less are female office portfolios 52 tenants, which covered 40% in the workforce the Green Performance 37.9% of tenants in our than RESOURCE AND CIRCULARITY Pledge to jointly office portfolio in Hong Maintain a gender balance 38.3% of senior improve environmental Kong 2025 KPI 2022 Progress Ranked 4th globally and Global Sector Leader – in senior managementmanagement positions performance No. 1 in Asia, 6th consecutive yearare held by womenWELLNESS Commercial waste diversion rate Member of the World Index – 12 12 Hong Kong Portfolio Hong Kong Portfolio 6th consecutive yearMaintain gender pay ratio Gender pay ratio (female to Taikoo Hui Guangzhou obtained WELL Platinum 76 F&B tenants in Hong Kong and the Recognised 30% 25% 1 : 13: 1 : 0.92 at male)certification, recognising the development’s positive Chinese Mainland with Green Kitchen Awards Chinese Mainland Chinese Mainland impacts on human health and wellbeing 12 12 1 Portfolio Portfolio The Smart Reusable Cup System at Taikoo Place expanded 40% 45% to 10 F&B tenants, and avoided the disposal of over 16,800 single-use cups since the programme’s launch BUILDING/ASSET INVESTMENT Ranked No. 1 for 5th “AAA” rating consecutive year, 2025 KPI 2022 Progress “AAA” ratingVOLUNTEERINGDIGITAL CONNECTIVITY 13 100% of wholly-owned 100% of new Our Community Ambassador Programme contributed Two Taikoo Place and Six Pacific Place became the first 13 new development projects development projects >6,100 volunteer service hours, supporting 73 buildings in Hong Kong to be both WiredScore and to achieve the highest achieved the highest ratings activitiesSmartScore Platinum certified environmental building 93% of wholly-owned assessment scheme rating 13 existing developments achieved the highest ratings 1 Disclaimer: www.swireproperties.com/sd/awards/mscidisclaimer.html6 Using 2015-2019 (5-year average) as baseline. Accidental rate represents the number of reportable accidents per 1,000 contractor workers. It is calculated 10 Compared to baseline year 2016-2018. 2 Compared to the baseline year of 2016.as the total number of reportable accidents multiplied by 1,000 and then divided by average daily number of contractor workers on-site.11 The 2025 KPIs under Energy have been updated per our approved 1.5°C-aligned SBT. Energy Use Intensity has been renamed to “Electricity Use Intensity” 3 In 2022, gender pay ratio is calculated based on a non-weighed average methodology.7 Measured by occupied lettable floor area (“LFA”) of office portfolios at 100% basis comprising of Taikoo Place and Pacific Place in Hong Kong and Taikoo in 2022 to reflect the use of electricity for the provision of shared services for and in the common parts of our buildings. The actual scope of this KPI remains 4 For wholly-owned investment portfolios.Hui Guangzhou. unchanged. 5 Products that meet specific sustainability criteria such as green certification or accreditation by reputable, independent third parties.8 Compared to the 2019 baseline.12 Hong Kong portfolio and Chinese Mainland portfolio refer to our office and retail portfolios and hotels in Hong Kong and the Chinese Mainland respectively. 9 Compared to the 2018 baseline. 13 Joint venture projects and trading properties are excluded. SUSTAINABLE DEVELOPMENT REPORT 2022 15
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) UN SDGs We support the United Nations Sustainable Development Goals (“SDGs”), which aim to end poverty, protect the planet and ensure that all people enjoy peace and prosperity by 2030. We believe that 11 of the SDGs connect closely with our SD vision and SD 2030 Strategy. These SDGs are relevant to the focus areas under one or more of the Pillars listed below. Our progress made against these SDGs in 2022 can be found in the corresponding Pillar sections of this report. Places We create long-term value by transforming places into vibrant and sustainable communities. Places aligns with: SDG 8 Promoting sustainable economic growth, employment and decent work for all. SDG 9 Building resilient infrastructure, promoting inclusive and sustainable industrialisation and fostering innovation. SDG 11 Making cities and human settlements inclusive, safe, resilient, and sustainable. People We invest in our employees and create an environment where they are healthier, happier and more productive. People aligns with: SDG 3 Ensuring healthy lives and promoting wellbeing. SDG 5 Achieving gender equality and empowering women and girls. SDG 10 Reducing inequalities within and among countries. SUSTAINABLE DEVELOPMENT REPORT 2022 16
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Partners Our business partners are crucial to the success of our SD 2030 Strategy. Partners aligns with: SDG 12 Ensuring sustainable consumption and production patterns. SDG 17 Strengthening partnerships for sustainable development. Performance (Environment) We design, construct and manage high-quality developments that contribute positively to communities and the environment. Performance (Environment) aligns with: SDG 3 Ensuring healthy lives and promoting wellbeing. SDG 6 Ensuring availability and sustainable water management. SDG 7 Ensuring access to reliable and sustainable energy. SDG 11 Making cities and human settlements inclusive, safe, resilient, and sustainable. SDG 12 Ensuring sustainable consumption and production patterns. SDG 13 Taking urgent action to combat climate change and its impacts. Performance (Economic) We believe that long-term value creation depends on the sustainable development of our business. Performance (Economic) aligns with: SDG 8 Promoting sustainable economic growth, employment and decent work for all. SDG 17 Strengthening partnerships for sustainable development. SUSTAINABLE DEVELOPMENT REPORT 2022 17
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) SD Governance SD Governance Structure GRI Swire Properties’ SD governance framework builds on our strong foundations of good corporate 2-9, 2-11, 2-12, governance and high ethical standards. 2-13, 2-14, 2-16, 2-17, 2-23, 2-24 Our SD 2030 Strategy seeks to reinforce these foundations by integrating economic, social and HKEX Mandatory environmental considerations into all levels of our business decision-making processes. Disclosure Requirement Board of Directors Oversees our SD 2030 Strategy and ESG-related issues ESG Steering Committee Ensures that the Company’s operations and practices align with our SD 2030 Strategy SD Working Groups Each Pillar of our SD 2030 Strategy is supported by a working group comprised SD Communication & of members from different departments Engagement Committee Oversees the implementation of Places People Partners communication and engagement initiatives that support our SD Performance Performance 2030 Strategy (Environment) (Economics) Board of Directors Our Board of Directors (“the Board”) is actively engaged in formulating and implementing our SD 2030 Strategy. The Board oversees SD and climate-related issues, while the Environmental, Social and Governance Steering Committee (the “ESGSC”) reports material SD and climate-related issues and the progress made towards key performance indicators (“KPIs”) to the Board. These are discussed at the board meetings where was held five times a year. Formerly known as the Sustainable Development Steering Committee, the ESGSC was renamed on 15 March 2022. The Board provides oversight of our risk management framework and our risks related to SD and ESG, including climate-related risks. Swire Properties also conducts regular risk identification and analyses and reviews management processes throughout the year through the Audit Committee and our Enterprise Risk Management (“ERM”) system, including our Corporate Risk Register. SUSTAINABLE DEVELOPMENT REPORT 2022 18
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Environmental, Social and Governance Steering Committee The ESGSC is chaired by the Chief Executive of the Company. Other members are the Finance Director and six members of our senior management from the human resources and administration, portfolio management, projects, public affairs, and technical services and sustainable development departments. In 2022, an Independent Non-Executive Director of the Company joined the ESGSC, who is also the Chairman of our Audit Committee. The composition of the ESGSC is reviewed annually by the Chief Executive to ensure an appropriate balance and representation of expertise and experience; and the Chief Executive may appoint any person or persons from within or outside the Company as considered appropriate. The Chairman of the ESGSC reports relevant SD and climate-related matters to the Board, as appropriate. In accordance with its terms of reference, the ESGSC is responsible for: (a) Reviewing, and suggesting any changes to, the Company’s ESG Strategy in respect of ESG matters (the “ESG Strategy”), including approving targets or key initiatives recommended by the working groups; (b) Ensuring that the Company’s operations and practices are carried out in line with the ESG Strategy; (c) Reviewing the Company’s annual performance in achieving targets or key initiatives recommended by the working groups; (d) Reviewing any significant risks, opportunities or investments that exist in connection with the implementation of the ESG Strategy; (e) Reviewing and approving the annual Sustainable Development Report and any relevant ancillary public documents; and (f) Through its Chairman, reporting relevant matters of significance relating to sustainable development to the Board. SD Working Groups Each Pillar is supported by a working group. In 2022, there were six SD working groups that continued to work on the KPIs and future targets set for each Pillar for 2025 and 2030. These are: 1. The Places Working Group, chaired by the Director, Office; 2. The People Working Group, chaired by the Director, Human Resources; 3. The Partners Working Group, chaired by the General Manager, Projects (HK & SE Asia); 4. The Performance (Environment) Working Group, chaired by the Director, TSSD & Facilities Management; 5. The Performance (Economic) Working Group, chaired by the Finance Director; and 6. The Sustainable Development Communication and Engagement Committee, chaired by the Deputy Director – Public Affairs. The members of each SD Working Group are carefully selected to ensure the inclusion of employees with different backgrounds, types of expertise and varying levels of seniority. SUSTAINABLE DEVELOPMENT REPORT 2022 19
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) SD Communication and Engagement Committee Our SD Communication and Engagement Committee identifies, prioritises and oversees the implementation of communication and engagement plans for initiatives that support our SD 2030 Strategy. It is chaired by the Deputy Director – Public Affairs. This Committee also includes representatives from different functions within the Company. Read more about what this Committee accomplished in 2022 here. Sustainable Development Policy GRI Our Sustainable Development Policy (“SD Policy”) was first published in 2008 and has guided the 2-23, 2-24 Company’s operations since then. The Policy is reviewed periodically and was last updated in 2021. The SD Policy reflects our belief that long-term value creation depends on the sustainable development of our business, our supply chain and the communities in which we operate. These factors are continuously considered during the inception, design, construction, occupation and demolition phases of our development projects. The SD Policy explicitly states that the Company will be a good steward of the natural resources and biodiversity within our influence and that we will ensure that all potentially adverse impacts of our operations are identified and managed appropriately. With respect to the environment, our approach follows the precautionary principle1 which states, “Where there are threats of serious or irreversible damage, lack of full scientific certainty shall not be used as a reason for postponing cost-effective measures to prevent environmental degradation”. We strive to operate in a manner that protects the health and safety of all of the people with whom we work. We also strive to be an employer of choice by providing a working environment in which all employees are treated fairly and with respect in order that they realise their full potential. 1 The precautionary approach is referred to in Principle 15 of The Rio Declaration on Environment and Development. SUSTAINABLE DEVELOPMENT REPORT 2022 20
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Swire Properties’ Policies Our SD Policy is supported by the following policies that focus on specific environmental and social impacts. Anti-Bribery and Biodiversity Policy Board Diversity Climate Change Corruption Policy (revised in 2022) Policy Policy (new) (revised in 2022) Corporate Code of Diversity and Environmental Conduct Inclusion Policy Energy Policy Policy (revised in 2022) Health and Safety Human Rights Policy Parental Leave Respect in Policy (new) Policy and Workplace Policy (revised in 2022) Guidelines Shareholders’ Staff Grievance Supplier Code of Resource and Communication Policy Conduct Circularity Policy Policy (new) (revised in 2022) Remuneration Water Policy Whistleblowing Policy (new) (revised in 2022) Policy (revised in 2022) SUSTAINABLE DEVELOPMENT REPORT 2022 21
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
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
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Communication and Engagement 2022 marked the third year of our SD-themed communication campaign “Sustainability We All Count”. Our first campaign was launched in 2020 with the aim of raising SD awareness amongst Swire Properties employees and stakeholders. In 2021, our second campaign highlighted our commitment to the Business Ambition to 1.5°C, featuring “1.5°C” as our key statement, to echo the ramp up of our SBTs in alignment with the 1.5°C decarbonisation pathway. This year, we pooled our efforts together and continued the campaign, empowering our employees, tenants, customers, suppliers and the public to work together in pursuit of our ambitious 1.5°C goal of reaching net-zero emissions by 2050. “Sustainability We All Count” 3.0 In February 2022, our “Sustainability We All Count” SD-themed communication campaign returned for its third iteration with a new theme: “Fighting Climate Change, Together We Can”. The campaign highlighted our pioneering SD initiatives and community engagement programmes via offline and online channels, both internal and external, aiming to encourage our employees, tenants, key stakeholders and the general public to take action in pursuit of our ambitious 1.5°C goal. As in previous years, the campaign featured “1.5°C” as the key element, with the enduring characters from the initial 2020 campaign drawing attention to the need to limit the global temperature rise to 1.5°C above pre-industrial levels by the end of this century. Posters were displayed in office buildings, malls, lift lobbies and on social media channels to reinforce the message, while frontline employees continued to wear “1.5°C” pins to sustain public awareness. Numerous events supporting the campaign were held during the year, such as a series of public eco- workshops with hands-on interactive activities, co-hosted at Blueprint, that focused on sustainable lifestyle elements; and a number of staff activities and celebrations that commemorated the hard work employees put into making the campaign a success, including customised posters and a “Together We Can” SD Character Contest, asking colleagues to recreate one of the SD characters from the campaign and give it their own creative twist by upcycling used materials. SD 2030 e-Learning Module Covering all basic aspects of our SD 2030 Strategy and relevant ESG topics, this comprehensive new SD e-learning module will become part of the intake process for new staff and will be provided as refresher training to existing staff. It will include videos from Company leaders, case studies and an entertaining “SD Dictionary” introducing SD buzzwords in a lively manner. The module, currently in the final stages of development, will be launched in early 2023. SUSTAINABLE DEVELOPMENT REPORT 2022 24
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Innovation and Experimentation A creative mindset of innovation and experimentation is crucial to the successful execution of our SD 2030 Strategy. In 2022, we repeatedly demonstrated our commitment to innovation and experimentation. Innovation Accelerator Swire Properties’ Innovation Accelerator (“IA”) programme was established in 2020 to promote a culture of innovation and create a positive, collaborative community of Change Agents who enjoy extensive training, tailor-made workshops and a chance to incubate ideas with senior management. 2022 saw the programme celebrate Swire Properties’ 50th anniversary with a busy year of roundtables, training and sharing sessions. Fifteen roundtables were held through the year, raising awareness and helping participants acquire basic knowledge of artificial intelligence (“AI”), blockchain, cloud-based services, and big and small data. These events, attracting large numbers of virtual and face-to-face participants, promoted new collaborations between different committees, departments and stakeholders. Topics included a placemaking masterclass, insights from our strategic partnership with Tsinghua University on the Joint Research Centre for Building Energy Efficiency and Sustainability, and an introduction to robotic process automation which was followed by a workshop on how to “build your own bot”. Eight IA training initiatives were held in 2022 to reinforce the “three Is” Change Agent DNA, which are essential components of IA programme: the “three Is” – being “inquisitive”, “influential” and “impactful”. Interactive and experiential workshops were organised on various topics including design thinking, the growth mindset and agility, aiming to equip our employees with a customer-centric mindset during product and service design. The flagship Clockwise programme saw 16 ideas generated over the year and added to current IA projects by our Change Agents. Each of these ideas received a strong commendation and were followed up for future planning within the relevant business units. In late 2022, the IA programme finished recruiting the second cohort of 60 Change Agents who met the criteria of being openminded, willing to change and not afraid to challenge the status quo. An inauguration ceremony was held in December 2022 to mark the start of their journey. SUSTAINABLE DEVELOPMENT REPORT 2022 25
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) New Ventures Working closely with technology companies, investors, accelerators and start-ups, Swire Properties’ New Ventures is a specialised department that identifies emerging trends and accelerates the adoption of best-in-class emerging technologies at scale for the Company. New Ventures does this in two ways – by identifying and trialling technologies that can help grow our businesses, and by actively investing in companies. This allows Swire Properties to flexibly adapt its strategy in light of emerging technology trends. In addition to managing a USD50 million venture fund to invest in Series A to Series C technology start-ups globally, New Ventures also manages a Tech Experimentation Fund that sponsors tech trials across the Company to accelerate innovation internally. 2022 saw New Ventures continue to source, trial and scale best practice technologies to drive strategic business impacts. Some examples include: • Robotics software technology that enables sophisticated architectural design to be executed with precision and speed; • A construction site capture tool and project management platform that reduces the risk of time and cost overruns; and • Frontline optimisation software to improve our retail operations and the customer experience. We also expanded our innovation partnership with Hong Kong Science and Technology Parks Corporation (“HKSTP”). Over the course of three years, HKSTP will introduce technology companies and smart solutions to Swire Properties for trial and adoption, make investment referrals, and explore potential investment collaborations in emerging technology start-ups. The department has been recognised as one of the most innovative organisations by 36Kr, a prominent Chinese Mainland-based media platform and thought leader on technology and innovation. New Ventures will continue to actively explore and adopt exciting technologies that will enhance and innovate Swire Properties’ business. The Next Generation Committee As part of our 50th anniversary celebrations, we launched the Swire Properties Next Generation Committee (“NextCom”), assembled to empower and learn from the Company’s many talented young people upon whom the future success of our business relies. NextCom is an in-house programme designed to give future leaders a platform to share their ideas and create meaningful change within the Company. Inaugurated in November 2022, NextCom is made up of 12 young people from different departments, regions and backgrounds who will form a diverse advisory team that will work closely with the Executive Committee. NextCom will provide key insights on business, strategy and community issues, gather and share opinions from young and junior colleagues, and drive action on topics that create significant business impacts. SUSTAINABLE DEVELOPMENT REPORT 2022 26
We believe that balancing internal and external viewpoints is critical to defining and managing SD issues that are significant to our business and our stakeholders.
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Materiality HKEX For the purposes of Swire Properties’ SD 2030 Strategy and SD reporting, materiality is defined as any Mandatory Disclosure factor that has a present or future impact on our ability to achieve our SD vision. We believe that balancing Requirement, internal and external viewpoints is critical to defining and managing SD issues that are significant to our Aspect B8 business and our stakeholders. Our Stakeholder Engagement Approach As set out in our SD 2030 Strategy, communication and engagement with employees, investors, tenants, customers, suppliers, regulators, NGOs, community representatives and many other stakeholders is an integral part of our daily operations. We regularly engage with our stakeholders to understand their priorities, expectations and perceptions regarding SD issues. When we first introduced our SD 2030 Strategy in 2016, we engaged extensively with senior managers and employees from across the business and consulted external sustainability experts. Today, our SD Communication and Engagement Committee continues to gather the support of our employees and other stakeholders to further integrate SD 2030 across our business. Our Stakeholders GRI Swire Properties’ stakeholders are both internal and external interest groups that have a significant 102-40, 102-42, impact on our business, or that experience significant impacts from our operations. We regularly engage 102-43 with these stakeholders through the appropriate channels. SUSTAINABLE DEVELOPMENT REPORT 2022 28
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Stakeholder Groups and Methods of Engagement Employee Groups Tenants • Surveys and interviews • SD-themed tenant • SPLinks intranet and the engagement programmes employee newsletter • Swire Properties Tenant CornerStone Portal • Training sessions • Joint projects • Competitions and team- • Community events building activities or events • Surveys and interviews • Virtual and in-person forums • Multi-stakeholder meetings • Employee townhalls and seminars on specific • “WeChat Work” mobile issues application Community/NGOs Customers/Consumers • Community events • Surveys • Joint projects • Customer service mobile • Working committees and applications consultations • Community events • Multi-stakeholder meetings • Joint projects and seminars on specific • Customer relationship issues management programmes Suppliers Regulators/Government • Supplier screenings and • Joint projects assessments • Working committees and • Joint projects consultations • Surveys • Interviews • Forums • Community events Industry Experts/Academia Joint Venture Partners • Joint projects and research • Surveys and interviews funds • Multi-stakeholder meetings • Multi-stakeholder forums and seminars on specific and partnerships issues • Seminars • Joint projects Shareholders & Investors Media • SD benchmarks and indices • Annual gatherings • Interviews and meetings • Interviews • Newsletters • Feedback and responses to • Events media enquiries • Investor Day SUSTAINABLE DEVELOPMENT REPORT 2022 29
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Stakeholder-driven Materiality GRI In 2020, we initiated a materiality review with the support of an independent consultant, the aim of 3-1, 3-2 which was to understand our stakeholders’ perceptions of the progress of our SD 2030 Strategy and their HKEX evolving expectations and priorities for the future. These perceptions have helped us further align our Mandatory Disclosure business practices, improved our decision-making and accountability, and guided the refinement of our Requirement strategy and focus areas in response to the latest local, regional and global developments. In 2021, we continued this process, adopting a combined qualitative and quantitative approach to assessing materiality. We interviewed 23 subject matter experts to identify new challenges and opportunities and conducted a broader survey of 547 external and internal stakeholders, who ranked issues in terms of their perceived importance to society, the environment and, for employees, their perceived impact on our business. Throughout the COVID-19 pandemic, we also gathered stakeholders’ feedback in order to gain greater understanding of the pandemic’s effects on their businesses, the real estate industry and our operations. The findings provided insights into ways of providing tailored support to our stakeholders during challenging times. Swire Properties is continuing to build on and refine our approach to materiality. For years, we have defined the concept of materiality as “any factors that are perceived to be important to our company’s business continuity and development as well as perceived to be important to our stakeholders”. This “importance-based” materiality follows widely adopted sustainability reporting frameworks such as the GRI Standards and has been the focus of previous materiality assessments and stakeholder engagement exercises. To gain an even deeper understanding of what aspects are important to the Company’s business continuity and development, a new materiality assessment and stakeholder engagement exercise will be conducted in 2023 based on the newly established concept of “double materiality”. Double materiality is a concept proposed by the European Commission’s Guidelines on Reporting Climate-related Information that encourages a company to assess materiality based on a topic’s implications for the company’s financial performance (i.e. financial materiality) as well as on the communities and the environment (i.e. impact materiality), and the interconnectivity between the two. This “financial-and-impact-based” double materiality will allow us to better assess the integration of sustainability with our business, understand our sustainability impact and align with global best practices in reporting. SUSTAINABLE DEVELOPMENT REPORT 2022 30
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Materiality Matrix Tier 1 issues (the most critical Tier 2 issues (important Tier 3 issues (relatively less material issues with the material issues with a high important material issues, as highest potential impact on potential impact on business perceived by stakeholders, that business success) success) can impact business success) Green Building Construction & Renovation 1 Decarbonisation 3 Energy Efficiency Climate Adaptation & Resilience 9 10 Community 2 Technology & Resource & Circularity 13 Investment & 4 Tenant & Customer Innovation Visitor/Occupant Health & Wellbeing Engagement Engagement Renewable Energy 16 14 6 5 Contribute to Local Economic Development 29 7 Local Revitalisation 17 eholders Responsible Supply Chain Management 8 Corporate Governance o stak Indoor Air Quality 20 12 11 Social Inclusion Employee Wellbeing Stakeholder Talent Attraction, tance t Occupational Health & Safety Engagement & 15 Collaboration Retention & Diversity & Equal Opportunities Development Impor 19 Risk Management 18 Labour Practices Cyber Security & Long Term Financial Biodiversity & Human Rights Data Governance Performance & Value Water Conservation Bribery & Corruption Importance to business continuity and development Places People Partners Performance (Environment) Performance (Economic) All pillars of SD 2030 Remarks: Tier 1 and Tier 2 issues are numbered in this matrix The top material issues in the matrix, namely Tier 1 and Tier 2 issues, are consistent with the focus areas of our SD 2030 Strategy and have been addressed in this report in accordance with the relevant Global Reporting Initiative Standards. SUSTAINABLE DEVELOPMENT REPORT 2022 31
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Top Material Issues Material Issues SD 2030 Strategy GRI Standards Impacts and Boundaries Focus Areas ors omers tners vest oups cademia/In Cust e ParA / Government/ / ts ors t entur ula eholders enants g oint V edia Employee GrCommunity/NGOsSuppliersTConsumersReJInd. ExperSharM 1 Green building Building/Assets and GRI 417 Marketing and Labelling (2016) Construction & Investments Renovation 2 Technology & Integral to multiple N/A Innovation focus areas 3 Energy Efficiency Energy GRI 302 Energy (2016) 4 Tenant & Customers and N/A Customer Tenants Engagement 5 Local Economic Livelihood GRI 203 Indirect Economic Impacts (2016) Development 6 Community Resilience GRI 413 Local Communities (2016) Investment & Engagement 7 Local Vibrancy GRI 203 Indirect Economic Impacts (2016) Revitalisation 8 Corporate Corporate GRI 205 Anti-corruption (2016) Governance Governance GRI 206 Anti-competition Behavior (2016) 9 Climate Climate Change GRI 201 Economic Performance (2016) Adaptation & GRI 305 Emissions (2016) Resilience 10 Decarbonisation Climate Change GRI 305 Emissions (2016) 11 Employee Talent Management GRI 403 Occupational Health & Safety (2018) Wellbeing 12 Stakeholder Integral to multiple N/A Engagement & focus areas Collaboration 13 Resource & Resource and GRI 306 Waste (2020) Circularity Circularity 14 Visitor/occupant Occupant Wellbeing GRI 416 Customer Health and Safety (2016) Health & Wellbeing 15 Talent Attraction, Talent Attraction GRI 401 Employment (2016) Retention & and Talent GRI 404 Training and Education (2016) Development Management GRI 405 Diversity and Equal Opportunity (2016) GRI 406 Non-discrimination (2016) 16 Renewable Energy GRI 302 Energy (2016) Energy 17 Responsible Suppliers GRI 301 Materials (2016) Supply Chain GRI 308 Supplier Environmental Assessment Management (2016) GRI 414 Supplier Social Assessment (2016) 18 Long-term Financial GRI 201 Economic Performance (2016) Financial Performance Performance & Value 19 Risk Management Risk Management GRI 201 Economic Performance (2016) 20 Indoor Air Quality Occupant Wellbeing GRI 416 Customer Health and Safety (2016) Places People Partners Performance (Environment) Performance (Economic) All pillars of SD 2030 SUSTAINABLE DEVELOPMENT REPORT 2022 32
The mission of Swire Hotels is to create authentic, unscripted and unforgettable experiences across its two brands: The House Collective and EAST.
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) The mission of Swire Hotels is to create authentic, unscripted and unforgettable experiences across its two brands: The House Collective and EAST. The Group manages distinctive hotels in Hong Kong and the Chinese Mainland for travellers who seek originality, style and personalised service. The House Collective is a group of refined, highly individual properties. Each House is unique, and created by talented architects and creatives to reflect the unique qualities of their surroundings. The EAST brand consists of lifestyle hotels that are bright, energetic and inspiring, bringing their community and sustainability-oriented mindset to the most dynamic areas of their cities. Both brands have their own approaches to putting SD into action, which mirror their individual, original DNA. Encouraging Creativity and Innovation for our 50th Anniversary As part of Swire Hotel’s commitment to innovation and creative transformation, the EAST brand has launched the “Ideas To Wake Up To” speaker series. This series is periodically hosted across all EAST hotels, bringing together like-minded business leaders and creatives to connect, co-create, learn, and spark new ideas. In 2022, three sessions were hosted with one in Hong Kong and two in Miami, all centred around topics pertaining to sustainable development (“SD”). The Think Differently Awards were launched across Swire Hotels in 2021 to encourage all team members to share their innovative and interesting ideas. In 2022, the awards were focused on SD, spanning three themes: water conservation, energy conservation and waste management. A total of 164 submissions were received. Both the “Ideas To Wake Up To” speaker series and the Think Differently Awards reflect the spirit of originality that Swire Properties celebrated during our 50th anniversary. SUSTAINABLE DEVELOPMENT REPORT 2022 34
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Places Vibrancy The House Collective runs a biennial art programme called “Encounters Across Cultures”, which invites artists from different backgrounds to collaborate on creative artistic expressions. In 2021, the Houses invited artists from around the world to come together to create and explore the concept of space and movement. Designed during the pandemic, the programme was realised through interactive video installations that – coupled with varying styles of dance – complemented the work of the esteemed architects behind each House. “Art at EAST”, launched in 2019, was the first art programme at EAST Hotels. At EAST Hong Kong, an interactive exhibition called “City Symphony” transports guests on a sound-based journey across the Taikoo neighbourhood using eccentric wooden sculptures. Livelihood At EAST Hong Kong, the Community Ambassadors continued a charity initiative launched in 2020 – the “A Spoonful of Love” campaign, which raises money for people in need in Hong Kong and provides a tasty and nutritious bowl of soup at the same time. The EAST Hong Kong team sourced ingredients to create their own special soup packets. Altogether, 2,261 soup packets were sent to families through 11 NGO partners. We also delivered 5,900 soup packs to doctors, nurses and staff at Eastern Hospital, sending the frontline medical carers a simple message: We Are All in This Together! SUSTAINABLE DEVELOPMENT REPORT 2022 35
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Wellbeing All hotels offer unique and comprehensive wellness programmes for guests and staff alike. The Upper House offers wellness residencies in Hong Kong, featuring holistic therapies, yoga and meditation sessions, fitness classes and in- room treatments, some of which are conducted in partnership with well-known sports and wellness brands. The Temple House provided regular wellness initiatives throughout the year, from healthy menu selections at the hotel’s restaurants to cross-brand collaborations and unique wellness-themed experiences for guests. These included exercise parties to promote stillness, happiness and wellbeing, and livestreamed yoga classes for staff and “House friends” during the lockdown period. One session attracted over 500 followers to participate. Resilience Between February to October 2022, EAST Hong Kong became a designated quarantine hotel to support the government’s quarantine arrangements for inbound persons from overseas – a crucial part of the city’s overall pandemic strategy at that time. During the soft lockdown period in Chengdu, The Temple House distributed mooncakes to the government community office that provided daily COVID-19 testing to the surrounding neighbourhood. The hotel also donated 215 boxes of mooncakes to charities during the Mid-Autumn Festival. Meanwhile, our hotel teams received care packages at their staff dormitories, while hotel guests were also given special packages daily including wine, cheese, Mi Xun hotpot, special cocktails and puzzle games to ensure they remained well in a positive and upbeat environment. SUSTAINABLE DEVELOPMENT REPORT 2022 36
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) People Health and Safety In line with Swire Properties’ Zero Harm Commitment to the health and safety of our people, guests and other stakeholders, The House Collective ran several health and safety training courses this year; while EAST focused on employee safety – in particular, a slip, trip and fall prevention campaign was organised. From June to November 2022, three series of videos weekly that cover a six-level slip, trip and fall prevention course were posted explaining how to enhance static and dynamic balance to reduce and prevent potential work injuries. Boosted by fun facts, quizzes and lucky draws, the course completion rate achieved 100%. The Upper House also provides regular first aid training to ensure team members’ first aid skills and knowledge remain current. In July 2022, we invited external trainers to deliver our annual Occupational Health and Safety (“OHS”) refreshment training, which was mandatory for all team members. Internal Zero Lost Time Injury Rate (“LTIR”) Awards The Opposite House 500 Days EAST Beijing 500 Days The Temple House 180 Days EAST Hong Kong and EAST Residences Hong Kong 180 Days SUSTAINABLE DEVELOPMENT REPORT 2022 37
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Diversity and Inclusion In June 2022, in cooperation with Christian Action, EAST Hong Kong hired two team members with refugee identities. One, from Sri Lanka, was hired as a guest experience host and another, from Pakistan, was recruited as a public area attendant. The Upper House also hired two team members holding refugee identities as servers at its restaurant Salisterra, one from Rwanda and another from Indonesia. The Upper House collaborated again this year with The Hong Kong Down Syndrome Association on our well-established “UPSTAIRS” training and work experience programme. This year, 10 members participated, went through the training and gained work experience in five hotel departments. EAST Hong Kong worked with the Jockey Club Sarah Roe School to provide special vocational training to children with learning disabilities. The students gained on-the-job experience, working with the team on tasks such as folding serviettes, greeting guests, preparing table seating, and packing guest amenities bags. Talent Management Swire Hotels launched the Operations Management Trainee Programme throughout the Swire Hotels’ portfolio. Personalised according to a candidate’s strengths and aspirations, the programme opens up opportunities for trainees to work across various departments and locations in Hong Kong and the Chinese Mainland. After 12 to 18 months of on-the-job training, our trainees gained a well-rounded understanding of the hotel business and insights from a management perspective. In July 2022, The Upper House launched a new one-hour SD workshop mandatory for all team members, discussing sustainability at Swire Hotels and how everyone can live a sustainable lifestyle. Other SD- related workshops will be explored in the future. The GroPRO and LeadPRO talent development programmes were run at EAST Hong Kong to support team members and team leaders respectively. Both offered tailored programmes to develop individuals’ qualities and strengths. Cross-exposure to programmes such as the “How to Run a Project” workshop and a coaching workshop were also arranged to support their personal development. SUSTAINABLE DEVELOPMENT REPORT 2022 38
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Staff Engagement Regular activities were held throughout the year across all Swire Hotels properties to boost staff morale and share positive news updates. The Middle House hosted two townhall meetings for all team members, at which the general manager shared hotel performance notes, updates and details of upcoming events. Fun games and lucky draws were also held for the team members and leadership teams. At EAST Hong Kong, team members were also invited to participate in the virtual “Trash to Treasure” bazaar, where they brought in items that were new but no longer in use to other colleagues, giving a second life to the preloved items. The Opposite House hosted a staff workshop organised by a bird-related charity discussing how to protect the environment and give birds a better home in the city. Participants learned practical ways to create a better balance between people and other creatures in the urban environment. Wellness Swire Hotels offers employee assistance programmes to help its team members avoid, recognise and resolve personal, psychological, social, familial or work-related concerns; improve their physical and mental health; and maximise their potential and job performance. Swire Hotels continues to work to contribute to and improve staff wellness in any possible way. Throughout 2022, The Temple House held regular movie nights, celebration days for staff birthdays and “special deliveries” of treats to staff such as cool drinks on hot days. The hotel also conducted regular activities for interns as part of a six-month hotel trainee programme, including management team exposure, role-play training, a video production and a graduation party. At The Temple House, a staff relaxation corner was added where staff can enjoy their break in a quiet environment while using a massage chair. At The Upper House, the “Monday Wellness Programme” for all team members provides different wellness activities every Monday, exploring important themes related to work-life balance and wellness. During the Shanghai lockdown, The Middle House organised virtual yoga and karaoke sessions for our employees, helping the team to release stress and connect with each other, and promoting health and mental wellbeing during a time of difficulty. SUSTAINABLE DEVELOPMENT REPORT 2022 39
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Volunteering At The Upper House, the ongoing soap recycling programme collected 387kg of bathroom amenities for an NGO. Its mission is to collect lightly used soap and bottled amenities to be recycled and distributed to those in need. EAST Hong Kong donated unwanted office furniture to 10 Hong Kong NGOs after moving offices, including many chairs and cabinets along with tables and electronic equipment. The Opposite House worked with a local community organisation, inviting disabled students and their teachers to visit the hotel, participate in team activities during festivals and allowing the students to sell handmade handicrafts to our team members. The Temple House donated used clothes to charities and hosted a charity bazaar with all revenue donated to a local animal shelter. Partners Customers This year, Swire Hotels introduced several digital improvements to our services designed to streamline and personalise the guest experience and make back-of-house operations more efficient. For example, the new House Collective WeChat “mini programme” allows WeChat users to access information and offers across the four Houses on a single platform, creating a faster and smarter guest experience. EAST Hong Kong launched digital menus at its restaurants. Diners can order food and drinks by scanning a QR code using their personal devices, and have receipts texted or emailed to them, creating a paperless dining experience. At The Upper House, guests can now scan a QR code in their rooms to enable a range of guest services, including room service and laundry. These create greater convenience and have decreased phone call volumes considerably. Also, at The Upper House e-shop, customers can purchase merchandise directly from the website, creating a seamless user experience. SUSTAINABLE DEVELOPMENT REPORT 2022 40
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Suppliers In 2022, Swire Hotels worked to incorporate the updated Swire Pacific Sustainable Procurement Policy and Sustainable Food Policy into our purchasing procedure guidelines. Our daily sourcing practices adhere to the principles of the 3Rs (reduce, reuse and recycle), and we tried our best to request sustainable products such as FSC-certified paper products, and Aquaculture Stewardship Council (“ASC”) and Marine Stewardship Council (“MSC”) certified seafood from suppliers. Most Swire Hotels restaurants aim to purchase fresh produce, live fish or dairy products from local suppliers and farmers in order to reduce the carbon emissions created by shipping food over long distances. In 2022, The Opposite House was supplied with edible flowers, tomatoes and fresh herbs from two local farms; while fresh fish and homemade caviar came from two aquafarms in the Chinese Mainland. The Temple House used a local farm for its vegetables, and The Upper House used a local aquaculture business for fish and an organic farm for its vegetables. At EAST Beijing, all craft beers were brewed in Beijing and 50% of the hotel’s cheese selection was produced locally. Most Swire Hotels restaurants use sustainable seafood that meet guidelines set out by the WWF-Hong Kong Seafood Guide or the ASC, and follow Swire Pacific’s Sustainable Food Policy that mandates strictly avoiding the purchase of any unsustainable food items such as shark fin or snake. In Hong Kong, 40% of the hotel seafood was certified to ASC or MSC standards. We aim for this figure to reach 50% by 2030. Swire Hotels restaurants are also offering more vegan and plant-based meat alternative menu options. At The Opposite House, our restaurant Union launched a vegan menu in late 2021, using plant-based meat across the entire menu. EAST Beijing now offers plant-based meat on its menus, while FEAST at EAST Hong Kong offers plant-based and vegetarian menus. All restaurants also added vegan or organic wines to their drink menus this year. Farm-to-table dining concepts are also taking hold at our Hotels – EAST Hong Kong, The Upper House, The Middle House and The Temple House all use cage-free eggs; and an on-site garden at The Temple Café at The Temple House supplies around 10% of its vegetables and produces around three kilograms of herbs to be used at the hotel’s restaurants each month. EAST Hong Kong also collaborated with a social enterprise dedicated to promoting urban farming in Hong Kong to build an urban garden in a corner of the hotel’s pool deck. SUSTAINABLE DEVELOPMENT REPORT 2022 41
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Partnering with a Brewery to Save Bread – and Make Beer! EAST Hong Kong has partnered with a local craft brewery in Hong Kong to take leftover fresh- baked goods from the hotel’s Domain Café and use it to make lager beer. After the surplus bread is collected and delivered to the brewery, it is blended into crumbs and used to replace a portion of barley malt. Following a two-month fermentation process, the leftover breadcrumbs and grains are then sent to a local farm to be used as animal feed and fertiliser, promoting the idea of circularity. This arrangement has saved approximately 40kg of surplus bread from going to landfill. Performance (Environment) Hotel Sustainability Technical Guidelines In 2022, we rolled out new Hotel Sustainability Technical Guidelines. These incorporate Swire Hotels’ sustainability aspirations and vision, starting from the design and construction of new developments to the hotel operations stage. The guidelines encourage teams to collaborate, innovate and create opportunities that will advance our sustainability performance locally and globally across our portfolio in several aspects: • Sustainable hotel certification • Building management systems and submetering • Energy efficiency • Water efficiency • Indoor environmental quality • Management for circularity • Sustainable transport • Interior finishes and materials SUSTAINABLE DEVELOPMENT REPORT 2022 42
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Energy In 2021, the entire Sino-Ocean Taikoo Li Chengdu complex, including The Temple House, became powered by 100% renewable electricity (a mix of hydropower, solar and wind power). The complex is a clean energy leader – one of the first entities in Sichuan and the first in Swire Properties to achieve net-zero carbon in its annual electricity consumption for landlord and tenant operations. This achievement has set a high bar for our other properties and for the industry. Green Building Certifications The Middle House Gold (LEED for Building Design and Construction) Two Star (China Green Building Label) The Temple House Platinum (LEED for Building Operations and Maintenance: Existing Buildings) Gold (LEED for Neighbourhood Development) Two Star (China Green Building Label) EAST Beijing Gold (LEED for Building Design and Construction) Platinum (LEED for Building Operations and Maintenance: Existing Buildings) EAST Hong Kong Gold (BEAM Plus New Building) SUSTAINABLE DEVELOPMENT REPORT 2022 43
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Waste Reduction This year, we intensified our commitment to reducing single-use plastics. In line with Swire Hotels’ vision, a wide range of initiatives have been implemented to reduce the consumption of these plastics in operations. EAST Hong Kong, EAST Beijing and The Upper House retrofitted over 800 rooms with an in-room water filtration system, eliminating the need for plastic bottled water in rooms, which helped to save the use of over 2.7 tonnes of plastic bottles. They also installed a filtered water dispenser in The Upper House’s gym. The Temple House, The Middle House and EAST Hong Kong phased out all single-use plastics – replacing all straws, hampers, room amenity wrappers and toothbrushes with products made from biodegradable materials. The hotels’ Eco-cup initiative uses reusable coffee cups made from materials such as coffee husks, bamboo powder and other natural plant fibres. Guests receive promotional rewards if they purchase a drink with these cups. Waste reduction initiatives at The House Collective included: • Replacing plastic room keys with wooden cards at The Temple House and The Middle House, and with bamboo cards at The Opposite House. • Offering single-use toiletries on request only at The Opposite House. • Replacing paper coasters with leather ones at Salisterra. • Upcycling bed linens by turning them into T-shirts. • Recycling waste glass bottles into eco-pavers at The Continental. • Recycling coffee capsules at The Opposite House – turning coffee grounds into soil and reusing the capsule casings. • Processing coffee beans with solar power and packaged in biodegradable materials. • Using ecoSPIRITS at several hotels – an innovative closed-loop distribution system that nearly eliminates packaging waste in the premium spirits supply chain. SUSTAINABLE DEVELOPMENT REPORT 2022 44
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) EAST also works to reduce waste in numerous ways: • Paperless check-in and check-out. • Replacing plastic room keys with wooden cards at EAST Hong Kong and EAST Beijing. • Over 500 rooms at EAST Hong Kong and EAST Beijing have now been retrofitted with a water filtration system to phase out plastic water bottles. • Contactless ordering service for guests to request room service or order in-room dining by scanning the “StayMenu” QR code with their mobile device – this has reduced about 70% of menu paper usage in the hotel’s restaurants and bars by reducing the need for unnecessary printouts such as entertainment lists and in-room dining menus. • Recyclable dispensers for body care products. • Bamboo material bathroom amenities, available on request. • Reusable shopping bags, paper hangers, canvas laundry bags and courtesy slippers as greener alternatives. • Recycling of plastic, aluminium, glass, coffee grounds and bath linens. Water The Middle House joined an annual water balance testing programme. The hotel’s engineering team installed six water meters in guest room areas, all restaurants and the hotel’s public areas. The water consumption in each area has been analysed monthly, with leaks identified quickly and problems fixed immediately. It is expected that water consumption in each area will be reduced by 2% and consumption per guest night lowered 3 to within 0.61m per guest night – the hotel’s water reduction target – by the end of 2022. A grey water treatment and recycling system has been in place to collect and reuse shower water, cooling tower water and rainwater at The Temple House since 2017. The system saves approximately 7,300m³ of water annually. Across all EAST hotels, flow controllers have been fitted onto guest room water taps and showers. At EAST Hong Kong, this has saved an average of 1,040m³ of water daily. SUSTAINABLE DEVELOPMENT REPORT 2022 45
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Green Kitchens Waste Reduction at FEAST at EAST Hong Kong The restaurant has installed and initiated numerous waste reduction measures: • Kitchen waste from all outlets is sorted. ORCA technology is then used to turn up to 270kg of food waste daily into liquid that can be discharged for sewerage treatment. With this technology, EAST Hong Kong was able to prevent up to 2,000 kg of food waste per month going to the landfills. • Sensor-enabled refrigerators, the doors of which shut automatically when no customers are around, keep food fresh for longer and reduce spoilage. • FEAST partners with the Nature Conservancy to convert oyster shells into oyster reef substrate materials to build new reefs, which act as natural water filters and play an important role in stabilising shorelines. Since January 2022, the restaurant has provided over 2.2 tonnes of shells. • The restaurant collaborates with a company to recycle used cooking oil into biodiesel. • FEAST uses ECOSpirits, as described in the Waste Reduction subsection. • Used coffee grounds are collected to be used as fertiliser by the hotel’s in-house gardener. SUSTAINABLE DEVELOPMENT REPORT 2022 46
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Green Kitchen Initiative All Swire Hotels food and beverage outlets actively participate in the Swire Properties Green Kitchen Initiative. Swire Hotel Restaurants with Green Kitchen Initiative Green Leaf Awards Restaurant Portfolio Leaf rating Year obtained Domain 2020 EAST Beijing FEAST 2020 Domain 2020 EAST Hong Kong FEAST 2020 Salisterra 2021 The Upper House The Continental 2021 Frasca 2020 The Opposite House Superfly 2020 Frasca 2021 Sui Tang Li The Middle House 2021 Café Gray Deluxe 2021 The Temple Café 2021 Tivano The Temple House 2021 Mi Xun Teahouse 2021 Two of our restaurants at EAST Hong Kong, FEAST and Domain, have received a Three-Leaf rating from the Green Kitchen Initiative for their active efforts to reduce energy, water and waste and for sustainable renovation decisions that have been made, which include: • The installation of variable-speed exhaust blowers to reduce electricity usage. • The installation of water economisers on all water taps, adjusted for optimal flow rate. • Rolling out paper straws and biodegradable corn powder takeaway packaging to replace single-use plastics. The initiatives have yielded outstanding results. Comparing the second half of 2019 to the same period in 2021, the restaurants achieved: 6% 31% 19% reduction in electricity usage drop in town gas usage reduction in water (excluding air-conditioning consumption consumption) SUSTAINABLE DEVELOPMENT REPORT 2022 47
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Performance (Economic) Expanding The House Collective brand Swire Hotels consistently sets benchmarks for success and continuously works to attract guests, visitors and diners through high-quality experiences. In 2022, Swire Hotels announced a growth plan to extend the established hotel brands into other cities on a management agreement (“HMA”) basis. Two new hotels will be operated under this business model. The first hotel will open in Shenzhen in 2025, while another new hotel in Tokyo is scheduled for completion in 2027. The new hotel in Shenzhen, under The House Collective Brand, will offer 115 guestrooms and 44 serviced residences with stunning views of Shenzhen Bay. It will be a major component of a premium mixed-use development comprising Grade-A office towers and an events and exhibition space. The Company also entered into a collaboration with Tokyu Corporation and Tokyu Department Store (“the Tokyu Group”) and L Catterton Real Estate (“LCRE”) to develop the new hotel in Tokyo under The House Collective brand. Located on the site of the iconic Tokyu Department Store’s flagship store, the new House will be part of the Shibuya Upper West Project on the edge of the fashionable Shibuya district. The project aspires to become Tokyo’s first true “urban retreat” – an enclave of peace and relaxation amid the bustle of the city. As well as combining a hotel and residences with high-quality retail, unique dining and arts and cultural facilities, environmental and sustainability objectives are central to the project, which aims to secure international certifications. SUSTAINABLE DEVELOPMENT REPORT 2022 48
Through effective placemaking and long- term placekeeping, we transform places while retaining their character to support communities and enhance people’s lives.
MENU PPLLACACEESS PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Places Highlights of Our Developments Places Impact Report Vibrancy Livelihood Wellbeing Resilience Swire Properties recognises that the places we create and maintain have significant impacts on society and the environment. Through effective placemaking, we aim to transform the urban areas in which our properties are located into vibrant and sustainable communities by carefully balancing the aesthetic, functional, ecological and cultural impacts of our developments. Meanwhile, through long- term placekeeping, which involves continuously evolving, maintaining and managing our assets, we aim to enhance the lives of the people who live and work within our developments and the surrounding communities. Places The SDGs relevant to initiatives under this Pillar are: SDG 8 Promoting sustainable economic growth, employment and decent work for all. SDG 9 Building resilient infrastructure, promoting inclusive and sustainable industrialisation and fostering innovation. SDG 11 Making cities and human settlements inclusive, safe, resilient, and sustainable. SUSTAINABLE DEVELOPMENT REPORT 2022 50
MENU PPLLACACEESS PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Places Highlights of Our Developments Places Impact Report Vibrancy Livelihood Wellbeing Resilience Highlights of Our Developments GRI 2-1, 2-6 Hong Kong Chinese Mainland Miami, U.S.A. Taikoo Place Citygate Pacific Place Cityplaza Hong Kong Taikoo Place Home to Swire for over 100 years, Taikoo Place has been transformed from an industrial area housing the Taikoo dockyard and sugar refinery into a global business district spanning 10 office towers, with six million sq ft of gross floor area. Taikoo Place includes a wide range of business and leisure amenities, including a 30,000 sq ft co-working space Blueprint, private members’ club The Refinery, as well as ArtisTree – a 7,000 sq ft multipurpose venue. It also comprises a landscaped garden, Taikoo Park and a variety of restaurants and cafes. The redevelopment of Taikoo Place, scheduled for completion in 2023, is set to become home to more multinational companies. Two Taikoo Place, our latest addition to the Taikoo Place Redevelopment Project, is a 42-storey premium office space with a total area of around one million sq ft. Two Taikoo Place has been designed and built to the highest sustainability standards, achieving Pre-certified Platinum ratings for LEED, WELL and BEAM Plus. Another highlight is the introduction of Taikoo Square and Taikoo Garden. The two gardens, comprising a collection of lush greenery, will provide 69,000 sq ft of open space – equivalent in size to Statue Square in Central – for the enjoyment of the community. SUSTAINABLE DEVELOPMENT REPORT 2022 51
MENU PPLLACACEESS PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Places Highlights of Our Developments Places Impact Report Vibrancy Livelihood Wellbeing Resilience Pacific Place Located in Admiralty on Hong Kong Island, the Pacific Place complex will comprise five Grade-A office towers (with Six Pacific Place scheduled for completion in 2023), a retail complex, four five- star hotels and serviced apartments. The complex currently provides over 2.4 million sq ft of gross floor area. Pacific Place Apartments comprises 268 exclusive serviced apartments and The Upper House, a House Collective hotel with 117 rooms. Our latest development, Six Pacific Place, will be completed in 2023. It will feature 24 storeys of premium triple Grade A office space totalling around 218,000 sq ft. Six Pacific Place has been designed and built to the highest sustainability standards, achieving Pre-certified Platinum ratings for LEED, WELL and BEAM Plus. In 2022, the building also received both WiredScore and SmartScore Platinum certifications, assuring tenants that the building’s design and infrastructure will provide an excellent digital experience that enables cutting-edge workplace solutions. The Pacific Place development is located next to the Starstreet Precinct, an adjacent neighbourhood which Swire Properties has transformed into a lively area filled with cafés, bars, restaurants, galleries and boutique shops. Citygate Located in Tung Chung on Lantau Island, Citygate is Hong Kong’s first and largest outlet shopping mall. The Citygate complex comprises 942,800 sq ft of retail space and 160,000 sq ft of office space. Directly connected to the Tung Chung MTR Station and near the Hong Kong International Airport and the Hong Kong-Zhuhai-Macao Bridge, this development offers excellent connectivity to transportation nodes and Hong Kong’s most popular tourist sites. SUSTAINABLE DEVELOPMENT REPORT 2022 52
MENU PPLLACACEESS PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Places Highlights of Our Developments Places Impact Report Vibrancy Livelihood Wellbeing Resilience Cityplaza Cityplaza is the largest shopping mall on Hong Kong Island, with a total floor area of 1.11 million sq ft. Directly accessible from Tai Koo MTR Station, the six-level mall houses more than 170 shops and restaurants, a unique lifestyle cinema, an indoor ice rink, and over 800 indoor parking spaces. Recent enhancements to the enduringly popular Cityplaza Ice Palace skating rink and improvements in the tenant mix, together with engaging mall promotions and activities, have made Cityplaza an abiding hub for community leisure and enjoyment. The mall is also connected to EAST Hong Kong, the Taikoo Shing residential development and more than 100 outdoor shops that serve the neighbourhood. Cityplaza Ice Palace was recently named “Most Outstanding Entertainment Venue 2022” at the Hong Kong Most Valuable Corporate Awards for its significance as a place of public entertainment. The award was based on criteria evaluating Cityplaza Ice Palace’s business reputation, corporate image, overall exposure, social media presence, innovation, corporate social responsibility performance, and other aspects. SUSTAINABLE DEVELOPMENT REPORT 2022 53
MENU PPLLACACEESS PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Places Highlights of Our Developments Places Impact Report Vibrancy Livelihood Wellbeing Resilience Highlights of Our Developments Hong Kong Chinese Mainland Miami, U.S.A. Beijing Xi’an Chengdu Shanghai Guangzhou Chinese Mainland Taikoo Li Sanlitun, Beijing Taikoo Li Sanlitun was Swire Properties’ first project in the Chinese Mainland. Located in the heart of Beijing’s Chaoyang District, the development, which includes a retail complex and a hotel, has played a crucial role in the transformation of Sanlitun into a centre of culture, retail, dining and hospitality. In December 2021, the approximately 300,000 sq ft Taikoo Li Sanlitun West – a project that transformed an old clothing market into a vibrant retail development – won the Excellence recognition at the RICS Awards China “Regeneration Project of the Year” for its innovative approach to urban regeneration. The property has eight above-ground floors and two underground floors, and a metro tunnel which links both the extension and Taikoo Li Sanlitun with Worker’s Stadium Station, a Beijing Metro transfer station scheduled to open in 2023. The opening of Taikoo Li West helps to enhance the urban vitality and quality within the area and is also a striking example of Swire Properties’ continued efforts to support Beijing in cultivating Sanlitun into a world-class business circle. SUSTAINABLE DEVELOPMENT REPORT 2022 54
MENU PPLLACACEESS PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Places Highlights of Our Developments Places Impact Report Vibrancy Livelihood Wellbeing Resilience INDIGO, Beijing INDIGO is a retail-led mixed-use development with a shopping mall, a Grade-A office tower and a hotel, EAST Beijing. The complex has implemented extensive SD features and programmes, including high-efficiency solar panels, optimised skylights, city-leading recycling procedures, and our Green Kitchen Initiative. In 2022 INDIGO celebrated its 10th anniversary. Celebratory activities were held throughout the year, themed “Inspiration at Every Turn”. These commemorated how INDIGO’s commitment to creative transformation, its skilled operations and management and its digital transformation have produced continuous upgrades in its design and retail mix, catalysing INDIGO’s evolution into the popular high-end business and lifestyle destination it is today. In July 2022, INDIGO opened a sustainable development centre called The Loop – a multipurpose space to engage employees, tenants and business partners in SD initiatives. The INDIGO Phase Two extension, announced in December 2020, is currently under development on an adjacent site. This office-led mixed-use extension has an expected total gross floor area of approximately 4.23 million sq ft and will contain a shopping mall, office towers and a hotel. The extension is expected to be completed in 2025. Taikoo Hui Guangzhou Taikoo Hui Guangzhou is a lifestyle destination development located in Guangzhou’s Tianhe District, comprising a shopping mall, two grade-A office towers and a hotel. Its shopping mall was the first enclosed mall in the world to earn Platinum Certification in the LEED (O+M). Since July 2021, Taikoo Hui Guangzhou has become powered by 100% renewable electricity. In 2022, the project also achieved WELL Platinum rating. Taikoo Hui Guangzhou is also the subject of our latest Places Impact Report, published in Q1 2023. Titled “The Creative Transformation of Taikoo Hui Guangzhou”, the report uses our Places Impact Framework to understand and measure the impact of the development at the investment, place and city levels. To view the full report, click here. SUSTAINABLE DEVELOPMENT REPORT 2022 55
MENU PPLLACACEESS PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Places Highlights of Our Developments Places Impact Report Vibrancy Livelihood Wellbeing Resilience Sino-Ocean Taikoo Li Chengdu Sino-Ocean Taikoo Li Chengdu is a 1.3 million sq ft retail-led development in Chengdu’s Jinjiang District. At the centre of the complex is the 16th- century Buddhist Daci Temple, a heritage site and a focal point for the city. Also included in the complex is The Temple House, a hotel managed by Swire Hotels. Sino-Ocean Taikoo Li Chengdu was the first open-plan lane-driven commercial complex in the world to gain LEED v4.1 (O+M) Platinum Certification status, as well as the first project in Sichuan province and the first shopping mall in the Chinese Mainland to achieve this certification. The development has been powered by 100% renewable electricity since 2020. Taikoo Li Qiantan, Shanghai Located in Shanghai’s Pudong Qiantan International Business District, the 1.3 million sq ft Taikoo Li Qiantan opened in late 2021. This unique wellness-themed shopping mall features a “double-open park” design, with a wide expanse of open green space and lanes across the ground level and rooftop connected by an 80m-long scenic bridge overlooking the Huangpu River. The 86,000 sq ft central park includes the Sky Loop, a 450m rooftop running track, and other greenery and leisure spaces that support and enhance the wellbeing of occupants and visitors. Taikoo Li Qiantan is the first shopping mall in the world to achieve WELL Core Platinum certification. HKRI Taikoo Hui, Shanghai Located on Nanjing West Road, one of Shanghai’s major shopping districts, HKRI Taikoo Hui has access to three Shanghai Metro lines and is comprised of two Grade-A office towers (with LEED Final Platinum Certification), a shopping mall (with LEED Final Gold Certification), and two hotels, The Middle House and The Sukhothai Shanghai. The development is transforming the district into a new business, shopping and entertainment hub. SUSTAINABLE DEVELOPMENT REPORT 2022 56
MENU PPLLACACEESS PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Places Highlights of Our Developments Places Impact Report Vibrancy Livelihood Wellbeing Resilience Taikoo Li Xi’an Taikoo Li Xi’an lies in the heart of downtown Xi’an in Shaanxi Province. With a total site area of almost 1.3 million sq ft, the development is located within the Small Wild Goose Pagoda historical and cultural zone in the city’s Beilin District, and is adjacent to the Small Wild Goose Pagoda, a UNESCO World Heritage Site. Swire Properties is partnering with Xi’an Cheng Huan Cultural Investment and Development Co., Ltd. to develop an urban regeneration plan for the site. The site will be developed into a retail-led project comprised of retail and cultural facilities, including a House Collective hotel, serviced residences and business apartments. Taikoo Li Xi’an has an estimated gross floor area of almost 2.9 million sq ft (above and below ground) and is expected to be completed by end of 2025. SUSTAINABLE DEVELOPMENT REPORT 2022 57
MENU PPLLACACEESS PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Places Highlights of Our Developments Places Impact Report Vibrancy Livelihood Wellbeing Resilience Highlights of Our Developments Hong Kong Chinese Mainland Miami, U.S.A. Miami, U.S.A Miami, U.S.A. Brickell City Centre, Miami Brickell City Centre is Swire Properties’ landmark development in Miami, U.S.A. Opened in 2016, it is our first development to obtain LEED Gold Certification for Neighbourhood Development. A highlight of the centre is the Climate Ribbon™, an elevated trellis that provides shade from the sun, creates air flow and collects rainwater, while also allowing natural light to penetrate and illuminate the shopping mall below. SUSTAINABLE DEVELOPMENT REPORT 2022 58
MENU PPLLACACEESS PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Places Highlights of Our Developments Places Impact Report Vibrancy Livelihood Wellbeing Resilience Places Impact Report Understanding the impacts that the places we develop and manage have on society and the environment is crucial to our long-term decision-making. Addressing the question “What makes a great place?”, our third Places Impact Report focuses on the area around Taikoo Hui Guangzhou. Published in conjunction with the School of Architecture at South China University of Technology, the report, called “The Creative Transformation of Taikoo Hui Guangzhou”, was released in March 2023. The report assesses how Swire Properties’ placemaking and placekeeping efforts have created positive impacts on the neighbourhood and surrounding area over the past 12 years, while also providing insights into the future role that Taikoo Hui Guangzhou will play as a city landmark that offers unique cultural and lifestyle experiences. The report continues to adopt the framework that explores the four dimensions of place – Vibrancy, Livelihood, Wellbeing and Resilience – to assess the qualities of Taikoo Hui Guangzhou, how these qualities have changed over time and how they compare to other commercial complexes in the city. The research highlights how Swire Properties’ continued investment in both hardware and software, as well as the multi-layered placemaking and placekeeping elements incorporated into the development, have contributed to the resilience of Taikoo Hui Guangzhou and its communities. To read the full report, please click here. SUSTAINABLE DEVELOPMENT REPORT 2022 59
MENU PPLLACACEESS PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Places Highlights of Our Developments Places Impact Report Vibrancy Livelihood Wellbeing Resilience Social Integration Strategies We recognise that our placemaking and placekeeping efforts can contribute positively to better quality places, creating better communities and improving the lives of our tenants, visitors and employees. This is why “Places” are at the heart of our SD 2030 Strategy. Swire Properties is committed to building and improving our portfolios to enhance the lives of the people who live and work within our developments and the surrounding communities. Our social integration criteria, embraces our four dimensions of place under the “Places” pillar – Vibrancy, Livelihood, Wellbeing and Resilience. Vibrancy • Located in or in close proximity to major transportation hubs • Promote connectivity with public transit, amenities and between buildings with well-designed walkways • Design accessible, inclusive and barrier-free pedestrian networks • Promote sustainable mobility wherever appropriate (e.g. walkable neighbourhoods, use of bicycles, free shuttle buses and electric car charging systems) • Extensive integration of arts in public spaces across our portfolios and in community programmes • High-quality open spaces and venues designed for and dedicated to community activities • Offer in-kind venue support for social enterprises and NGOs Livelihood • Mixed use development promoting a strong diversity of business sectors and economic resilience • Promote cohesive business networks to create a “local business ecosystem” and a greater sense of community among the working population • Support affordable housing wherever appropriate Wellbeing • Monitoring of occupant wellbeing (e.g. indoor air quality) and incorporation of wellness features and initiatives • Amenities such as accessible toilets, nursing and breastfeeding rooms, accessible parking spaces and wheelchairs • Accessibility to green space and nature and promotion of urban farming facilities wherever appropriate Resilience • Employ best practice risk management procedures to ensure business continuity at the corporate and asset levels, including proactive measures to assess climate risks and build climate resilience and adaptive capacity across our portfolios • Promote social resilience and community connection through community initiatives and educational programmes SUSTAINABLE DEVELOPMENT REPORT 2022 60
MENU PPLLACACEESS PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Places Highlights of Our Developments Places Impact Report Vibrancy Livelihood Wellbeing Resilience We employ an integrated design approach to our projects in accordance with the requirements of several internationally recognised standards and rating schemes, such as BEAM Plus, LEED, The China Green Building Design Label and WELL. These standards set out the requirements of physical and social environments that benefit the health, well-being and productivity of people. Our new development projects will, as far as practicable, pursue credits under these green building standards and rating systems, to promote social integration. The following initiatives represent Swire Properties’ alignment with the social integration criteria in our projects under development and existing portfolio in 2022. • 100% of our properties are located in close proximity to transportation hubs, with pedestrian-friendly networks that are well connected with transit stations and amenities. Free shuttle bus services are available at some of our portfolios. Bicycle parking facilities are provided at most of our properties. • 100% of our properties have accessible, inclusive and barrier-free pedestrian networks. • 98% of our properties have open spaces and venues designed for and dedicated to community and arts events. • For common areas, approximately 83% and 80% of buildings in our Hong Kong portfolio and our Chinese Mainland portfolio achieved IAQ Excellent Class and fulfilled the local IAQ standard respectively. • In March 2023, we published our third Places Impact Report, exploring the social and economic placemaking impacts of our Taikoo Hui Guangzhou development. The research highlights how Swire Properties’ continued investment in both hardware and software have contributed to the resilience of Taikoo Hui Guangzhou and its communities. • Swire Properties’ Placemaking Academy is back again in 2022, offering Hong Kong university students the opportunity to design, plan and execute the White Christmas Street Fair. Through this programme, we hope to transfer creative knowledge and skills to participants and empower them to support Swire Properties’ long-term community-building initiatives. SUSTAINABLE DEVELOPMENT REPORT 2022 61
MENU PPLLACACEESS PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Places Highlights of Our Developments Places Impact Report Vibrancy Livelihood Wellbeing Resilience Vibrancy Throughout 2022, Swire Properties invested significant time, effort and expenses to ensure that all our developments offered artistic and cultural activities for the benefit of users and the public. Embracing Originality for our 50th Anniversary In 2022, Swire Properties celebrated our 50th anniversary with an “ORIGINAL. ALWAYS.” themed campaign, commemorating the Company’s creative and innovative spirit and long-term commitment, as well as the core values and people that have made this extraordinary journey possible. A host of programmes and special initiatives were held throughout the year, featuring collaborations with renowned and up-and-coming artists from the worlds of contemporary and digital art. Each of them mirrored our anniversary theme and delivered original, immersive and exceptional arts and cultural experiences to our local communities. Tim Blackburn, our Chief Executive, remarked that, “Originality and creativity are integral parts of our placemaking efforts. Over the past half century, this approach has inspired us to enrich local neighbourhoods and make art and culture a part of everyday life. Our developments are renowned for effortlessly combining these elements to create places where people can thrive. I can’t think of a better way to continue our anniversary celebrations than by sharing such inspiring experiences with our communities.” Artistic expression is vital to the health of communities and society. Swire Properties remains committed to supporting artists, creators and performers by showcasing artistic and cultural works throughout our portfolio. Our 50th anniversary celebrations held throughout the year featured several collaborations with hand-picked artists. SUSTAINABLE DEVELOPMENT REPORT 2022 62
MENU PPLLACACEESS PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Places Highlights of Our Developments Places Impact Report Vibrancy Livelihood Wellbeing Resilience Swire Properties’ 50th Anniversary Arts Programmes Highlights Bags: Inside Out Partnering with the Victoria and Albert Museum, London, this exhibition of 240 rare and unique bags, from designer handbags and vanity cases to utilitarian rucksacks – is travelling to five Swire Properties malls in the Chinese Mainland and Hong Kong in 2022 and 2023, bringing world-class museum experiences to people and inspiring our communities. The thematic exhibition examines the worldwide heritage of bags from the 16th century to today, exploring their function, status and craftsmanship, and unpacking humanity’s longstanding fascination with them. Orbstellar Metaspace Pacific Place’s first-ever Artech exhibition created by local artist Chris Cheung and his art collective XCEPT. Launched in the summer of 2022, the cosmic installation invited visitors to embark on an astral voyage of participatory digital art, NFT co-creation and a captivating three-dimensional experience featuring celestial bodies and orbs. 50th Anniversary Art NFT Collection Our 50th Anniversary Art NFT Collection took Swire Properties’ support for cultural programming in an original new direction. We commissioned 10 artists from Hong Kong, the Chinese Mainland, Southeast Asia, the United Kingdom and the United States to create an NFT collection that articulated the artists’ unique styles and took inspiration from our “originality” theme. These works accentuated our creative vision and inventiveness and underlined our sustained commitment to a dynamic, flourishing future. SUSTAINABLE DEVELOPMENT REPORT 2022 63
MENU PPLLACACEESS PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Places Highlights of Our Developments Places Impact Report Vibrancy Livelihood Wellbeing Resilience Seasons in Continuum In November and December 2022, we launched a specially-commissioned botanical art series at Taikoo Place called “Seasons in Continuum”. Magical floral sculptures reflecting our “Original. Always.” Anniversary theme provided an immersive, creative playground for the public and the local community to enjoy. The four intricate and unique installations, named “Spectrum”, “Ripple”, “Origination” and “Reflections”, were brought to life by Hong Kong-based floral artisan Kirk Cheng, who specialises in large-scale floral installations. Art Basel Hong Kong Partnership 2022 marked the 10th year of our partnership with Art Basel Hong Kong. Founded on a shared desire to encourage and support a thriving artistic and cultural dialogue within the community, over the years this partnership has helped inspire an increasingly dynamic arts scene in Hong Kong and boosted the city’s reputation as an international cultural hub. To celebrate this partnership, Swire Properties offered an open and accessible space for art enthusiasts to connect and unwind during the event. Designed by Hong Kong architectural studio ESKYIU, the Swire Properties VIP Lounge was themed “PROPAGATION”, an undulating installation inspired and anchored by UK artist Alison Crowther’s “Kissing Bench”. SUSTAINABLE DEVELOPMENT REPORT 2022 64
MENU PPLLACACEESS PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Places Highlights of Our Developments Places Impact Report Vibrancy Livelihood Wellbeing Resilience Vibrant Markets Bring Streets Back to Life Tong Chong Street Market The Tong Chong Street Market (“TCSM”) was created in 2015 in partnership with a local social enterprise. Blending green lifestyle aspects with cooking to promote healthy living and sustainability, the market features fresh local farmers’ produce and creative dishes and celebrates unique food festival themes. TCSM remains one of Swire Properties’ major SD 2030 initiatives, developing a like-minded community of culinary entrepreneurs, chefs and local farmers to promote sustainability and wellness, and continuing to engage the office community through weekend markets, exclusive pop-up farmers’ visits and lunchtime pop-up food trucks. Now in its eighth year of operation, TCSM has adapted to changes in Hongkongers’ understanding of and preference for health-conscious food and lifestyle choices. This year, the market held the “Bite to Change” initiative, focusing on showing the community how the choices people make affect both their personal wellbeing and global sustainability. In July and August, we joined up with a virtual bank that is committed to shrinking its carbon footprint and other like-minded vendors that brought their vision of a sustainable future to life in various ways which included using packaging made of dissolvable sugar cane fibre, paper and wood instead of plastic; and turning coffee berry skins into a tonic. In September and October, TCSM collaborated with an NGO that specialises in agriculture-based climate solutions, particularly improving soil health through regenerative agriculture. During the period, all F&B vendors at TCSM pledged 1% of every purchase to fund regenerative farming practices locally. In November and December, the TCSM Christmas Pop-up brought a wide variety of sustainable F&B vendors to the Taikoo Place community with products rooted in health and wellness. These included artisan coffee makers, an outlet that combines gourmet vegetarian menus with innovative fitness routines, a chocolate drink maker that prioritises using every part of the cacao fruit, by adding it into desserts and other dishes, and a pioneering coffee specialist that provides vegan coffee options. Each vendor brought Christmas-themed festivity and sustainability to the market. As always, the market strove to put sustainability into action, with reusable dishware and utensils available to borrow, food waste recycling bins and eco-product stalls featuring recycled and upcycled items. For more on TCSM, please visit the official website. SUSTAINABLE DEVELOPMENT REPORT 2022 65
MENU PPLLACACEESS PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Places Highlights of Our Developments Places Impact Report Vibrancy Livelihood Wellbeing Resilience Citygate Outlets’ Summer Outdoor Market Citygate Outlets invited 32 social enterprises and local farmers to the mall on two weekends in August 2022 where they took part in the Summer Outdoor Market to promote healthy living and sustainability. The market featured fresh produce from local farms – primarily vegetables and fruits, handmade food and beverage offerings, creative handicrafts made by the beneficiaries, and many sustainable and organic products. Workshops and live performances enhanced the festive ambience, with the event drawing almost 4,000 visitors per day. Youth Empowerment Launched in 2019, the award-winning Swire Properties Placemaking Academy (“SPPA”) offers Hong Kong university students the opportunity to design, plan and execute the White Christmas Street Fair – the Company’s annual year-end community celebration event. The SPPA is a crucial part of our placemaking work with a goal of empowering Hong Kong’s youth to build vibrant and sustainable local communities. During this half-year experience, students gain hands-on skills and are mentored by Swire Properties’ senior management and some of the most prominent personnels in the fields of placemaking, creativity, sustainability and communications to become “creative placemakers” and community builders. The SPPA’s aims are to: • Nurture talented Hong Kong youth and showcase their creativity and ability to bring original ideas to life. • Transfer creative knowledge and skills to participants and empower them to support Swire Properties’ long-term community-building initiatives. • Offer students and alumni job opportunities and exposure, working with the Company’s extensive community network and learning from event-planning experts and marketing specialists to further develop their innovation skills. SUSTAINABLE DEVELOPMENT REPORT 2022 66
MENU PPLLACACEESS PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Places Highlights of Our Developments Places Impact Report Vibrancy Livelihood Wellbeing Resilience As part of Swire Properties’ 50th anniversary festivities, in addition to the White Christmas Street Fair, 40 SPPA students and alumni collaborated to create urban furniture pieces for the community. With support from up-and-coming industrial designers, the students created a strategic plan, moved through the design thinking process and engaged the Taikoo Place community to produce three state-of-the-art pieces. The final products will be displayed at Swire Properties’ headquarters in Taikoo Place in 2023. Swire Properties Placemaking Academy Key Figures 8 students 13 masterclass lectures from the Hong Kong University of by industry-leader in sustainability, Science and Technology and City placemaking, design thinking, University of Hong Kong stakeholder engagement, communications, and more 6 months Over HKD480,000 paid apprenticeship in employment support In a further nod to the SPPA’s contribution to Hong Kong, in November 2022, the SPPA was placed first in the “Excellence in Social Impact” category at the Awards for Excellence in Training and Development 2022, presented by the Hong Kong Management Association. This placement was a recognition of the excellent work done by the students in fully designing, executing and running a physical street fair from conception to execution. SUSTAINABLE DEVELOPMENT REPORT 2022 67
MENU PPLLACACEESS PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Places Highlights of Our Developments Places Impact Report Vibrancy Livelihood Wellbeing Resilience White Christmas Street Fair 2022 The White Christmas Street Fair was even more special in 2022 as it celebrated both Christmas and our 50th anniversary. The festival was themed “Bloom & Beyond”, in recognition of our commitment to the next generation and the fact that our decades-long placemaking efforts are blossoming. The fair filled Tong Chong Street with 5,000 upcycled poinsettias made with used materials collected from Swire Hotels and Cathay Pacific. The White Christmas Street Fair once again supported and raise funds for Operation Santa Claus, raising HKD862,000 this year and bringing the 10-year total to over HKD8 million. Working towards a zero-waste event, the SPPA team kept a mind-set of upcycling and recycling from the start, collaborating early on with designers, suppliers, vendors and the Company’s sustainable development team to plan and manage the materials that were used and discarded. Several of the fair’s installations were built using a new technology that 3D prints “reversible sand”, which, upon the completion of the event, allows the sand to be recycled. Designated recycling points were also set up to collect paper, metal, glass, plastic and compostable waste. By developing innovative waste prevention and recovery measures, material consumption was reduced by more than 20% while the waste diversion rate was over 90%. For more details on the resource and circularity measures used at the fair, please click here. Now in the post-event phase, the SPPA team is conducting a comprehensive assessment of the fair’s carbon footprint, which will help facilitate strategic carbon reduction measurements, benchmarking and future target setting. SUSTAINABLE DEVELOPMENT REPORT 2022 68
MENU PPLLACACEESS PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Places Highlights of Our Developments Places Impact Report Vibrancy Livelihood Wellbeing Resilience Bi-city Youth Cultural Leadership Programme In 2022, Swire Properties began partnering with the Hong Kong Palace Museum (“HKPM”) on a two-year “Bi-city Youth Cultural Leadership Programme”, which aims to nurture a new generation of cultural leaders in Beijing and Hong Kong. The leadership programme is the HKPM’s flagship youth learning initiative, and Swire Properties is the lead sponsor. The programme offers hybrid learning and training activities focusing on fundamental art and cultural knowledge, innovative thinking, cross-disciplinary capacity building and internship opportunities. The goal is to provide a platform for young people in Beijing and Hong Kong to connect, share experiences and exchange cultural ideas. In 2022, around 80 university students from Beijing and Hong Kong began participating in a four-month online exchange programme. In 2023, about 16 university students will join a two-month summer learning programme and participate in visits, talks and workshops in Beijing and Hong Kong, and take part in summer internships at leading arts and cultural organisations and companies in Hong Kong. Taikoo Li Sanlitun West Wins Urban Regeneration Award Taikoo Li Sanlitun West, an expansion of the existing Taikoo Li Sanlitun retail development that includes the renovated Yashow Market, has been named one of the best examples of urban regeneration in Beijing in a citywide competition organised by the Beijing Urban Planning Society. The approximately 301,000 sq ft building reopened in December 2021, having been repositioned as a lifestyle destination featuring a mix of fashion and F&B outlets with health and fitness, lifestyle and entertainment elements. The redeveloped site aligns closely with Beijing’s strategy of revitalising older areas and demonstrates Swire Properties’ commitment to creative transformation and placemaking. The transformation also represents a milestone in the continuous upgrade of the Greater Sanlitun Business Circle – a broader Chinese government plan to grow Sanlitun into a world-class business destination. Taikoo Li Sanlitun is contributing to this plan on several fronts: renovating the retail complex’s north zone, refurbishing flagship stores in the south zone and building an elevated pedestrian bridge linking the west and south zones. SUSTAINABLE DEVELOPMENT REPORT 2022 69
MENU PPLLACACEESS PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Places Highlights of Our Developments Places Impact Report Vibrancy Livelihood Wellbeing Resilience Livelihood Throughout 2022, Swire Properties continued to drive employment, facilitate pandemic recovery schemes and initiatives, and support NGOs and social enterprises in the communities in which we operate. Taikoo Li Xi’an 2022 saw the announcement of Taikoo Li Xi’an in partnership with Xi’an Cheng Huan Cultural Investment and Development Co. Located within the Small Wild Goose Pagoda Historical and Cultural Zone, a scenic area with profound historical and cultural significance, Taikoo Li Xi’an will be situated adjacent to Small Wild Goose Pagoda, a UNESCO World Heritage Site, and Jianfu Temple, a royal temple built in 684 A.D. during the Tang Dynasty. The project will pay tribute to local history, culture and heritage whilst immersing visitors in unique retail, cultural and lifestyle experiences. Swire Properties and Xi’an Cheng Huan Cultural Investment and Development Co. Ltd. will develop an urban regeneration plan for the area that blends old and new and takes full advantage of its location at the intersection of two metro lines. Taikoo Li Xi’an will be a retail-led project featuring a low-rise, open-plan architectural design that exemplifies the Taikoo Li brand. It will comprise retail and cultural facilities, a luxury hotel, serviced residences and business apartments. With an estimated above- and below-ground GFA of almost 2.9 million sq ft, this will be Swire Properties’ fourth Taikoo Li in the Chinese Mainland, following the successful development of Taikoo Li Sanlitun in Beijing, Sino-Ocean Taikoo Li Chengdu and Taikoo Li Qiantan in Shanghai. The project is expected to be completed by the end of 2025. SUSTAINABLE DEVELOPMENT REPORT 2022 70
MENU PPLLACACEESS PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Places Highlights of Our Developments Places Impact Report Vibrancy Livelihood Wellbeing Resilience HKRI Taikoo Hui Empowers Shanghai’s Night-time Economy HKRI Taikoo Hui held a series of programmes to support the 2022 Shanghai Night Festival. The event, running in August and September, was one of the centrepieces of the city’s “Double Five Shopping Festival” that aimed to boost consumer spending and combat the social and economic effects of the COVID-19 pandemic. At the festival’s opening, the General Manager of HKRI Taikoo Hui, announced the start of a public project to connect the city to music. In cooperation with Shanghai Metro, Jiushi Travel and the Modern Art Museum Shanghai, “Play Me, I’m Yours” street pianos – which anyone can play – will pop up in three public places: a metro station, a ferry pier and along the Huangpu riverfront. Numerous choices were also provided for evening entertainment, including a food fair, a rooftop camping party and the “Personally Yours” member programme that integrates retail brands with marketing, art and commerce in creative ways to provide tailored shopping experiences. HKRI Taikoo Hui remains committed to promoting business opportunities in Shanghai and boosting the night-time economy in the West Nanjing Road CBD, one of Shanghai’s major shopping thoroughfares, as the pandemic recovery continues. Supporting the Hong Kong Government’s Consumption Voucher Scheme In April 2022, to support Hong Kong as the city slowly recovered from the pandemic, Swire Properties partnered with Octopus, one of the selected operators in the Hong Kong government’s Consumption Voucher Scheme (“CVS”). We launched a two-month sales incentive programme offering shopping rewards worth a total of HKD5 million at Pacific Place, Cityplaza and Citygate Outlets. Octopus card users shopping at these malls instantly received incentives when they reached the designated spending amount. Generating incremental sales and traffic for tenants across these three malls, the initiative created positive impacts for shoppers, tenants, the local communities around the malls, and the wider Hong Kong economy. SUSTAINABLE DEVELOPMENT REPORT 2022 71
MENU PPLLACACEESS PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Places Highlights of Our Developments Places Impact Report Vibrancy Livelihood Wellbeing Resilience The three malls then built on this success for the second phase of the CVS, beginning in June, offering HKD12 million in incentives to shoppers reaching a designated electronic spending amount. These included limited edition premiums featuring popular characters and shopping vouchers with no minimum spending requirement. These incentives were bolstered by lively and engaging summer shopping campaigns at the three malls with pop-up stores, digital activities, a “summer farm garden”, weekend outdoor markets, and other undertakings – all designed to promote local consumption and maintain positive momentum for the wider Hong Kong retail industry. Launch of Blueprint Sustainable Development Cheat Sheet Blueprint, Swire Properties’ flexible work and event space in Taikoo Place’s Dorset House, is committed to continuously improving operational sustainability. In August 2022, Blueprint launched its first Sustainable Development Cheat Sheet, covering key statistics such as energy consumption, water and paper usage, other pertinent metrics, and tips on habits that can make workspaces greener. The cheat sheet targets Blueprint members who have collectively shown an increasing awareness of environmental issues. Available on the Blueprint Member Portal, the data collected from the cheat sheet will allow the Blueprint team to gain oversight on how various spaces are performing from a sustainability perspective, help Blueprint members develop their own SD strategies, and create positive changes in the overall workspace. Blueprint offers flexible solutions for work and event space needs across two floors of Dorset House. On one floor, an open-plan co-working space houses 90 dedicated desks, suitable for start-up companies and small businesses, and 15 variously sized private offices that cater for larger clients, up to and including multinational corporations. The second floor holds 10,000 sq ft of event venues, including an auditorium and a town hall which can be converted into training rooms – all of which are equipped with sophisticated audio-visual equipment. SUSTAINABLE DEVELOPMENT REPORT 2022 72
MENU PPLLACACEESS PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Places Highlights of Our Developments Places Impact Report Vibrancy Livelihood Wellbeing Resilience Wellbeing Swire Properties continued to prioritise supporting the mental and physical health of our visitors, tenants and workers in 2022. We also continued our work to make our properties more inclusive and accessible to all, designing features and accessibility considerations that go beyond the required regulations. Taikoo Hui Guangzhou Mall and Office Towers Gain WELL Platinum In March 2022, the entire Taikoo Hui Guangzhou complex applied for WELL Platinum certification. This certification recognises the development’s positive impacts on human health and wellbeing, through superior performance in terms of air and water quality, nourishment, optimal light, fitness, comfort and mental health. The complex received formal WELL Platinum certification in mid- December 2022. Recharge Tung Chung Community Day In June 2022, Citygate Outlets sponsored the “Recharge Tung Chung Community Day”, a large- scale community event organised by a sports foundation to bring together the Tung Chung community and promote sports and sustainable living to families. Families in Tung Chung were invited to take part in interactive sports and fitness workshops and learn more about sustainability and environmental conservation through a wellness market and artwork displays. The event attracted over 1,200 participants. SUSTAINABLE DEVELOPMENT REPORT 2022 73
MENU PPLLACACEESS PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Places Highlights of Our Developments Places Impact Report Vibrancy Livelihood Wellbeing Resilience Resilience GRI In Hong Kong and the Chinese Mainland, the COVID-19 pandemic remained a dominant influence 203, 413 throughout 2022. Though pandemic-related closures and restrictions created a challenging operating HKEX Aspect B8 environment for all our employees and properties, we remained resilient and united, working towards KPI B8.1, B8.2 a post-pandemic recovery by reinforcing social cohesion, boosting our investment in people and communities, and continuing to raise our adaptive capacity. Supporting Hong Kong during the Battle Against the Pandemic Beginning in early 2022, the fifth wave of the COVID-19 pandemic spread across Hong Kong. Swire Properties acted quickly and proactively to support the fight against the disease and keep the wider community safe on multiple fronts. Providing Rental Relief to Retail Tenants The retail industry has endured multiple negative impacts since the start of the COVID-19 pandemic. Throughout 2022, Swire Properties took a collaborative approach with our tenants, providing customised rental relief to help individual tenants through difficult times. Offering Facilities for Isolation and Quarantine Following a surge in COVID-19 cases, the Hong Kong government initiated the Community Isolation Facility Hotel Scheme, targeting 7,000 to 10,000 hotel rooms from the private sector to be used for quarantine and isolation. Swire Properties fully supported the scheme and offered the Novotel Citygate Hotel, a 440-room hotel facility adjacent to Citygate Outlets in Tung Chung. The Novotel Citygate was accepted and deemed a designated quarantine hotel for the seventh cycle of the scheme. EAST Hong Kong also operated as a designated quarantine hotel from February to September 2022. Donating Rapid Testing Kits to Children in Special Residential Childcare Services Swire Properties provided funds to the Hong Kong Council of Social Services to purchase 20,000 rapid testing kits for more than 4,000 children. These kits were distributed to children in special residential childcare services supported by over 20 NGOs in Hong Kong, helping to facilitate the timely tracking of infected cases and ensuring that the children received prompt medical care. Promoting the Vaccine Pass Initiative Swire Properties helped to raise public awareness of the Hong Kong government’s Vaccine Pass Initiative, an important anti-epidemic measure to encourage more people to get vaccinated and help Hong Kong residents safely resume normal daily activities. Promotional videos were displayed in the Pacific Place, Cityplaza and Citygate Outlets malls, and the Company issued detailed circulars to retail tenants and residents to spread further awareness. SUSTAINABLE DEVELOPMENT REPORT 2022 74
MENU PPLLACACEESS PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Places Highlights of Our Developments Places Impact Report Vibrancy Livelihood Wellbeing Resilience Responding to the Pandemic Across our Properties Taikoo Li Sanlitun Taikoo Li Sanlitun worked to support the community pandemic response in several ways throughout 2022. In May, the general manager and staff volunteers helped out at a local testing site, registering more than 5,300 people in a day. Volunteers also contributed nearly 200 service hours to pandemic prevention and control. The mall supported the local administrative agency when it encouraged elderly residents to take the COVID-19 vaccine; and assisted the emergency response to a COVID-19 outbreak in Chaoyang District in June, donating supplies including face masks, fruit and drinks worth RMB40,000 to frontline workers as they worked to contain the outbreak. Taikoo Li Sanlitun also opened two care stations to provide free daily necessities to frontline workers. The goal was to show appreciation for the “unsung heroes” – the essential service workers who performed hard and important tasks to keep the community safe and operating during the pandemic lockdowns, including delivery people, medical professionals, police officers, community volunteers and sanitation workers. INDIGO INDIGO management and employees worked hard to ensure stable operations for 10 days after a lockdown of several neighbourhoods was triggered in early April. The restrictions went into effect immediately, causing a sudden shortage of staff and changes to business hours at retail stores. INDIGO instantly enacted a contingency response to ensure the safety and wellbeing of customers, retail operators and tenants. Measures included adding temporary security guards, adjusting the tasks of sanitation workers to safeguard operations at the office tower and mall, and providing temporary accommodation for frontline workers. Employees working from home were also given all necessary support during this challenging period. When the lockdown began, security staffing was challenging due to travel restrictions. To ensure key entrances and exits were covered, INDIGO management quickly established a volunteer employee taskforce to perform health, safety and security duties. SUSTAINABLE DEVELOPMENT REPORT 2022 75
MENU PPLLACACEESS PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Places Highlights of Our Developments Places Impact Report Vibrancy Livelihood Wellbeing Resilience HKRI Taikoo Hui During Shanghai’s battle against COVID-19, Swire Properties opened a nucleic acid testing site inside the HKRI Taikoo Hui mall, and donated 1,000 sets of protective suits, face shields and shoe covers to the West Nanjing Road Subdistrict Office, the nearest local government agency. The Swire Group and Swire Properties also each donated RMB1 million to the Shanghai Medicine and Health Development Foundation, funding that was used to support frontline workers from the Shanghai Municipal Health Commission, the Jing’an District Health Commission and Ruijin Hospital. Taikoo Li Qiantan Thanks to the dedication and selflessness of our employees, operations at Swire Properties’ new wellness-themed mall remained safe and stable throughout Shanghai’s 65 days of lockdown. When Pudong District businesses were closed on 28 March, more than 100 employees from the mall’s engineering, security and sanitation units decided to stay behind. This team was responsible for maintaining the mall’s infrastructure, including fire equipment, electricity and water supplies, for the entire lockdown. Sino-Ocean Taikoo Li Chengdu In May and June 2022, Sino-Ocean Taikoo Li Chengdu provided support and relief to long- term tenants by organising workshops to devise and implement recovery strategies. Over 20 workshops were held which aimed to help tenants drive sales and traffic in the wake of April’s pandemic restrictions. Over 200 VIP members of the mall also attended the workshops, receiving extra reward points and other promotional gifts from various brands as a gesture of thanks for their loyalty and participation. SUSTAINABLE DEVELOPMENT REPORT 2022 76
MENU PPLLACACEESS PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Places Highlights of Our Developments Places Impact Report Vibrancy Livelihood Wellbeing Resilience New Xi’an Team The Swire Properties team in Xi’an had just begun work on our new Taikoo Li Xi’an project when a COVID-19 outbreak took hold. The team began working from home in December 2021, earlier than the official citywide lockdown. Swire Properties then donated RMB1 million to fund COVID-19 relief initiatives across Xi’an. The donation provided pandemic prevention funding to the Xi’an government and health authorities, along with medical and hygiene supplies and daily necessities for the community. Swire Properties Community Caring Fund The Swire Properties Community Caring Fund (“CCF”) provides sponsorship to less-well-known Hong Kong-based community organisations nominated by our employees. The objective is to help these organisations plan and implement community-based initiatives and outreach projects. Since 2013, the CCF has donated over HKD 19 million to 163 community-based initiatives and outreach projects. In 2022, the CCF sponsored 21 initiatives and outreach projects, donating a total of over HKD 2 million to projects. Education 5% Elderly 6% Children & Youth 16% Healthcare 51% Community 22% SUSTAINABLE DEVELOPMENT REPORT 2022 77
MENU PPLLACACEESS PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Places Highlights of Our Developments Places Impact Report Vibrancy Livelihood Wellbeing Resilience Noodles For Love Running into its third year, the CCF continues to show support to the “NOODLES FOR LOVE”, a matching donation scheme to promote food sharing and caring culture. Teaming up with one of Cityplaza’s tenant, we have sold 3,000 packets of noodles during this event. Swire Properties will also make matched donations to our two charity partners, Hong Kong YWCA and St. James’ Settlement. Caring Frontline Cleaning Workers Together with YWCA, the CCF launched a “Spreading Care to Frontline Cleaners” scheme to show care to frontline cleaners and our appreciation to their hard work and dedication in upkeeping our community hygiene. The scheme included regular visits to refuse collection points and handing out of supplies such as disinfectant sprays and cooling towels to support the wellbeing of the cleaner’s work environment. COVID-19 Emergency Support The CCF supports local non-profit organisations such as J Life Foundation, Direction Association for the Handicapped and Time Capsule in care response programmes to relief the challenges during COVID-19. We made donations of food, essential supplies, and test kits to support vulnerable communities including low-income families, elderly, people with severe physical disabilities and cleaning workers. SUSTAINABLE DEVELOPMENT REPORT 2022 78
People We believe that the contributions of our employees are critical to the implementation of our SD 2030 Strategy and to our overall success.
MENU PLACES PEPEOOPLPLEE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) People 2022 Progress Employment Profile Talent Attraction Talent Management Occupational Health and Safety Diversity and Inclusion Volunteering We believe that the contributions of our employees are critical to the implementation of our SD 2030 Strategy and to the overall success of Swire Properties. As such, we aim to create an environment where our employees will be healthier, happier and more productive. We also seek to invest in our employees and aim to provide them with rewarding career paths as we work to develop a diverse, industry-leading team. Human Rights Policy We conduct our businesses in a manner which respects the human rights and dignity of our employees, those employed in our supply chains and the communities in which we operate, in line with the principles and guidance contained in the United Nations Guiding Principles on Business and Human Rights. In 2022, we introduced our Human Rights Policy, which is informed by the International Bill of Human Rights and by the International Labour Organisation’s Declaration of Fundamental Principles and Rights at Work. The policy sets out the expectations for which our operations and supply chain should operate. The policy addresses diversity and inclusion practices, labour standards, health and safety and employment conditions. Well established channels are provided to our employees and stakeholders to report on human rights-related issues. SUSTAINABLE DEVELOPMENT REPORT 2022 80
MENU PLACES PEPEOOPLPLEE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) People 2022 Progress Employment Profile Talent Attraction Talent Management Occupational Health and Safety Diversity and Inclusion Volunteering 2022 Progress Our People Working Group is comprised of 24 representatives from different functions within the Company. Its primary responsibility is to achieve progress in the six focus areas of the People Pillar: Talent Attraction, Talent Management, Rewards, Occupational Health and Safety, Diversity and Inclusion, and Volunteering. In 2022, we continued to work towards achieving our 2025 KPIs. We introduced the Human Rights Policy, setting out our expectations for which our operations and supply chain should operate in areas of diversity and inclusion practices, labour standards, health and safety and employment conditions. Our progress towards our 2025 KPIs is summarised in the table below. Progress Summary Table Talent Attraction Employer Branding 2025 KPI Progress Updates in 2022 • Improve employee net promoter score by • Our Pulse Survey revealed an improvement 10%2 of 44%. Our Talent Management subgroup is developing strategies to improve performance in this area. Talent Management Learning and Development 2025 KPI Progress Updates in 2022 • A 25% increase in training hours per • Delivered around 154,000 training employee per year³ hours in 2022, an average of 24 training hours per employee. This is an increase of 97% compared to our 2016 baseline year. 2 Compared to the baseline year of 2020. ³ Compared to the baseline year of 2016. SUSTAINABLE DEVELOPMENT REPORT 2022 81
MENU PLACES PEPEOOPLPLEE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) People 2022 Progress Employment Profile Talent Attraction Talent Management Occupational Health and Safety Diversity and Inclusion Volunteering Engagement 2025 KPI Progress Updates in 2022 • Achieve an employee engagement index • The results of our 2022 People rating of 90% or above Engagement Pulse Survey recorded an 88% employee engagement index rating. • Improve employee turnover rate by • The turnover rate in 2022 was 18.6% 5.5%4 and has improved by 21.2% compared to our 2018 baseline year. Occupational Health and Safety Safety 2025 KPI Progress Updates in 2022 0.57 for Swire Properties’ • Maintain a lost time injury rate (“LTIR”) at • An LTIR of or below 1.2 for non-hotel operations; non-hotel operations and an LTIR of and at or below 2.0 for hotel operations 1.56 for Swire Properties’ hotel operations. • Maintain zero work-related fatalities • Maintained zero work-related fatalities and zero serious incidents5 for and zero serious incidents. employees 4 Compared to the baseline year of 2018. 5 “Serious incident” is defined in the Swire Pacific Fatal and Serious Incident Reporting Policy, a serious incident is a life- threatening or life-altering injury (that results in permanent disablement or causes a permanent change to the employee’s daily life) arising from an incident which is directly connected with the operations. SUSTAINABLE DEVELOPMENT REPORT 2022 82
MENU PLACES PEPEOOPLPLEE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) People 2022 Progress Employment Profile Talent Attraction Talent Management Occupational Health and Safety Diversity and Inclusion Volunteering Diversity and Inclusion Policy, Strategy and Governance 2025 KPI Progress Updates in 2022 • Maintain a female representation of no • 40.2% of the workforce are female. less than 40% in the workforce • Maintain a gender balance in senior • 38.3% of senior management management positions are held by female. • Maintain gender pay ratio at • The gender pay ratio in 2022 was 1 : 1 1 : 0.92 (female to male)6. 6 In 2022, gender pay ratio is calculated based on a non-weighed average methodology. SUSTAINABLE DEVELOPMENT REPORT 2022 83
MENU PLACES PEPEOOPLPLEE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) People 2022 Progress Employment Profile Talent Attraction Talent Management Occupational Health and Safety Diversity and Inclusion Volunteering Employment Profile We employ around 6,400 people7, of which approximately 3,000 are located in Hong Kong, 3,000 in the Chinese Mainland, and 300 in Miami, U.S.A. Employees, by gender Male Female 3,829 (59.8%) 2,578 (40.2%) Employees, by age group 30 to 50 years old 3,683 (57.5%) Under 30 years old 1,354 (21.1%) Over 50 years old 1,370 (21.4%) Employees, by region Chinese Mainland 3,034 (47.4%) Hong Kong Miami, U.S.A. 3,050 (47.6%) 318 (5.0%) Others 5 (
MENU PLACES PEPEOOPLPLEE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) People 2022 Progress Employment Profile Talent Attraction Talent Management Occupational Health and Safety Diversity and Inclusion Volunteering Talent Attraction HKEX Creating an Industry-leading Work Environment for our Employees Aspect B1 Our employees receive competitive remuneration packages with a variety of benefits. In Hong Kong, these packages include medical care, retirement schemes and discretionary bonuses, while in the Chinese Mainland, in addition to social insurance and housing funds, employees are provided with medical care and discretionary bonuses. Swire Properties strives to ensure that every employee receives regular, objective, fair, and open assessments of their performance and is rewarded accordingly with merit-based incentives. We have a Performance and Development Review (“PDR”) system in place to streamline our assessment processes and ensure consistency across the Company. Our office employees align their annual performance goals with each SD Pillar. In 2021, we identified a job evaluation platform and completed the job evaluation process – a key building block of Swire Properties’ new Rewards Philosophy, which is designed to ensure that our employees receive fair pay internally and a competitive salary within the industry. The project began in 2022, with the development of the Rewards Philosophy framework scheduled for completion by Q4 of 2023. Our employer branding communication strategy, launched in 2020, ensures that we continue to attract and retain talent. Our 2025 KPIs contain targets relating to talent attraction and retention which will support our long-term plan of being identified as a “preferred employer” by 2030. Since 2020, we have taken a blended approach to onboarding interns and trainees. While traditional in- person visits to our portfolios still take place, some orientation is now conducted online via our internal learning platform. This platform has become part of our regular onboarding practices. New joiners may access the platform at any time to familiarise themselves with the Company by reading articles, completing quizzes and watching videos of department representatives sharing their experiences. This popular and efficient approach cuts down on the manpower involved in the orientation process, and serves as a blueprint for future recruits, regardless of their onboarding date or location. Total New Hires, by region Number Percentage Hong Kong 662 43.2% Chinese Mainland 690 45.1% Miami, U.S.A. 179 11.7% Total 1,531 SUSTAINABLE DEVELOPMENT REPORT 2022 85
MENU PLACES PEPEOOPLPLEE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) People 2022 Progress Employment Profile Talent Attraction Talent Management Occupational Health and Safety Diversity and Inclusion Volunteering Swire Properties Wins Randstad Most Attractive Employer Award 2022 Swire Properties was recognised as “Hong Kong’s Most Attractive Employer” at the Randstad Employer Brand Awards 2022, underscoring the Company’s commitment to investing in our people to create an open, inclusive and rewarding workplace environment with an emphasis on gender equality and diversity. This is the second time Swire Properties has placed first – the other time was in 2020. We have consistently been ranked in the top 10 since 2017. The awards rank the employer attractiveness of Hong Kong’s 75 largest commercial companies and institutions that are known by at least 10% of the local population. This year’s awards saw companies rated on their relative employer brand awareness and attractiveness by more than 3,000 local respondents. Delivering on our Employee Value Proposition Last year, Swire Properties developed employer branding guidelines to recognise, strengthen and support the reputation and reality that the Company is a great place to work. Our reputation as a respected and valued employer – our employee value proposition (“EVP”) – is defined by four core themes which reinforce our position as a modern, forward-looking, creatively- focused company that is proud of the mutual respect and trust between employer and employees. These themes are: • Building Trust through adherence to impeccable professional and ethical standards, and a rigorous, respectful internal culture. • Building Pride in the quality of our projects, and the imagination, invention and openness to new ideas that deliver ingenious and inspiring solutions. • Building Futures because long-term thinking is central to our commercial ethos, not only in the responsible, sustainable legacy we leave for future generations, but in the lasting and wide-ranging development of our staff. • Building Communities by transforming the places where people live, work, stay, and play to best effect. This EVP is part of our wider Employer Brand story – that the combined skill, imagination and creativity of everyone at Swire Properties has enabled us to transform the places where we operate, create new and thriving communities and redefine our proactive responsibility for a sustainable future. The purpose of the story is to inspire enduring creativity and, as such, each employee deserves our respect and the ability to enjoy targeted opportunities to enhance their skills and celebrate working together. SUSTAINABLE DEVELOPMENT REPORT 2022 86
MENU PLACES PEPEOOPLPLEE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) People 2022 Progress Employment Profile Talent Attraction Talent Management Occupational Health and Safety Diversity and Inclusion Volunteering Talent Management HKEX We attach great importance to attracting talented people to work with us and retaining them as they Aspect B3 develop their long-term careers with the Company. People Engagement Pulse Survey for Employees In 2022, we conducted a People Engagement Pulse Survey of 570 employees across Hong Kong and the Chinese Mainland. The survey had a 100% response rate and the results paint an encouraging picture: an average of 88% of the surveyed employees reported being engaged – the same level reported in our 2020 People Engagement Survey. This figure outperforms the local markets and global benchmarks. Two categories, “Change Management” and “Originality”, saw a marked improvement over the 2020 survey, while staff communication was also excellent, with 360 staff providing a total of 800 written comments. In 2022, we also conducted an 100% response rate engagement survey for all of our Miami, U.S.A. employees, with engagement index reaching 94%. An important 2025 KPI in this performance category is improving our net promoter score (“NPS”) by 10%. In the 2020 survey, our NPS was 16%; in the 2022 survey it was 23%. Breakdown of the Engagement Index for the Hong Kong and the Chinese Mainland People Engagement Pulse Survey 2022 By Management & Non-Management level 88% 87% Management level Non-management level By Age Group 84% 88% 93% Under 36 36 to 55 Above 55 years old years old years old By Gender 87% 89% 75% Female Male Prefer not to say By Region 85% 92% Hong Kong Chinese Mainland SUSTAINABLE DEVELOPMENT REPORT 2022 87
MENU PLACES PEPEOOPLPLEE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) People 2022 Progress Employment Profile Talent Attraction Talent Management Occupational Health and Safety Diversity and Inclusion Volunteering Learning and Development Programmes Our multi-year trainee programmes help develop talent in building surveying, engineering and general management, and Swire Hotels’ 18-month International Operations Management Trainee Programme provides wide-ranging exposure to hotel operations in Hong Kong, the Chinese Mainland and Miami, U.S.A. In 2022, we continued empowering our employees, providing engagement, learning and motivational opportunities through online and offline programmes. Several of these were new or revamped versions of long-running initiatives such as the Achieving Excellence Programme and two structured leadership programmes: the Building Management Team (“BMT”) Leadership Excellence Programme and Technical Services (“TS”) Supervisory Excellence Programme launched in 2021. The BMT Leadership Excellence Programme is designed to develop stronger BMT leaders and create a more structured approach to employee training and development and the BMT leadership pipeline. The programme is focused on enhancing BMT supervisors’ people management capabilities. Based on the findings of several focus group discussions, four modules were designed to address the top identified leadership needs. The six-module TS Supervisory Excellence Programme follows the same approach as the BMT programme but with customised content for the TS team. Both programmes helped supervisors learn or enhance their skills and knowledge in people management and helped them to apply those skills to workplace situations. Total Training Hours and Spending ~154,000 24 HKD7.7 HKD1,200 hours hours million Total training hours Average training Total training Average training hours per spend spend per employee employee Average Hours of Training, by gender 22.4 26.4 Male Female Average Hours of Training, by employment category 23.5 24.2 Management level Non-management level SUSTAINABLE DEVELOPMENT REPORT 2022 88
MENU PLACES PEPEOOPLPLEE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) People 2022 Progress Employment Profile Talent Attraction Talent Management Occupational Health and Safety Diversity and Inclusion Volunteering Launch of the SPROPS Learning Hub The Swire Properties Learning Hub was launched in July 2022, aiming to nurture a culture of self- learning across the Company. An enhanced and more comprehensive version of the existing Learning and Development Hub has a section specifically designed for frontline employees that provides customised content to enhance their engagement, learning and motivation levels. This “e-hub” provides digitised materials that are quickly and easily accessible to maximise qualitative and quantitative impacts. Topics include Empowerment, Innovation, Diversity and Inclusion, People Management, Agility, and others, with the materials provided in different formats. One example is the “Move a Step Forward” online learning module, which consists of short videos and a one-page toolkit. This flexible and convenient approach gives learners a quick and basic understanding of topics like the growth mindset and design thinking. Initially offered in English, a Chinese translation is currently being produced, along with more short videos. Another example is “GoSkills”, a flexible learning platform that helps colleagues learn essential business skills to achieve personal and professional goals. GoSkills provides information on over 70 topics, including over 1,000 courses on common software programs used in the workplace for administration and design, soft skills, and business and development. Learners can set their own learning pace and curricula by managing, tracking and assigning courses based on their personal training needs. SUSTAINABLE DEVELOPMENT REPORT 2022 89
MENU PLACES PEPEOOPLPLEE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) People 2022 Progress Employment Profile Talent Attraction Talent Management Occupational Health and Safety Diversity and Inclusion Volunteering The Achieving Excellence Programme Review The Achieving Excellence Programme (“AEP”) is a Swire Properties leadership development programme launched in 2015. This two-year programme aims to help our managers discover their leadership potential through workshops that develop leadership and communication skills, strategic thinking and performance management. Its four main modules are “Leadership Development”, “Smarter Process and Better Experience”, “Seeing the Bigger Picture”, and “Learning by Doing”. The programme review, which began last year, adopted a multidimensional evaluation system, including a 360-degree feedback mechanism that gathers employee feedback on how the AEP has helped them in their career development and contributed to employee retention and work efficiency improvements. The review adopted the Kirkpatrick Evaluation Model to evaluate learning effectiveness, gathering input through questionnaires and focus group discussions. The review found that the “energy level” of various traits has increased over the past two years, including innovation, decision-making skills, motivation of others, planning and teamwork, and cooperation. Based on these findings, the curriculum will be fine-tuned and further tailored to meet both individual development and business needs. Additional programme elements will also be offered in digital form. Strengthening the Work Effectiveness of Frontline Staff Swire Properties ran three recurring initiatives in 2022 to strengthen the work effectiveness of individual frontline staff. These were aimed at customer service and building management staff and emerging leaders. A customised half-day customer service training programme for residential staff concentrated on their specific training needs to support a better delivery of customer experience. The programme gave staff tools to help them understand and communicate with residents more effectively. We estimate that 300 frontline staff will have completed this training by early 2023. A Building Management Team refresher programme was revamped into a two-part hybrid learning programme and launched in May 2022. Frontline staff who complete the first part, an e-learning session, are invited to attend the second part, a classroom session. In the classroom, participants work SUSTAINABLE DEVELOPMENT REPORT 2022 90
MENU PLACES PEPEOOPLPLEE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) People 2022 Progress Employment Profile Talent Attraction Talent Management Occupational Health and Safety Diversity and Inclusion Volunteering on interactive training through case studies, group discussions, quizzes, and site visits. The e-learning component allows staff to learn at their own pace, while the classroom sessions enhance engagement and real-world training. The half-day Leadership in Transition programme focuses on experience sharing as a tool for frontline training. Existing management staff share their knowledge and experiences in a Q&A session, while newly promoted staff explain challenges they may have encountered transitioning from being an individual contributor into a people management role. This format allows the participants to appreciate the details involved in changing roles and the concurrent adjustments in mindset that are necessary to getting a successful start. Empowerment Campaign In our 2020 People Engagement Survey, “empowerment” was one of the two major focus areas identified as the required follow-up action. Accordingly, we developed a series of activities that will allow us to create workplaces where employees feel empowered and valued. The first training workshop was held in May 2022 for senior management on “How the Best Leaders Ignite Everyone’s Intelligence”. It aimed to enable leaders to become multipliers who can discover, access and use their teams’ untapped capabilities; who can rekindle energy and enthusiasm as teams achieve stronger results; who can innovate by encouraging new and bold thinking; and who can break through to new levels of performance by amplifying people’s intelligence. Two follow-up sharing sessions were held in late 2022, discussing how to apply these multiplier tools in the workplace. An “Empowerment x D&I Luncheon” on “How to Empower Yourself and Others” was also held, welcoming three speakers who shared their personal and professional stories about what it means to be empowered at work, and explained how anyone can empower themselves and others by building a trusting and open culture. Lastly, a sharing session was held in late 2022 with staff whose careers are success stories of self- empowerment and/or being empowered by a supervisor. SUSTAINABLE DEVELOPMENT REPORT 2022 91
MENU PLACES PEPEOOPLPLEE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) People 2022 Progress Employment Profile Talent Attraction Talent Management Occupational Health and Safety Diversity and Inclusion Volunteering Service Excellence Awards Swire Properties continues to reward exceptional frontline staff with awards for exemplary service. This year, 27 staff from nine business units received Service Excellence Awards, with two of them receiving the top “Best of the Best” award: one from Cityplaza’s Building Management Team and the other from Citygate Outlets’ Technical Team – both of whom went above and beyond the call of duty. Now in the ninth year, the Service Excellence Awards are among the Company’s most popular and effective initiatives in terms of engaging and encouraging frontline colleagues to do even better in their day-to-day work. Digital Series NFTs, or non-fungible tokens, was a hot topic in 2022, with individuals and companies seeking to realise the market opportunities inherent in these new instruments. In July 2022, aiming to elevate innovation and encourage smart processing, Swire Properties invited a cryptocurrency and blockchain expert to host a workshop during which he shared his insights on NFTs, explaining their utility and discussing their potential future value. As we work to reinforce a data-driven mindset across the Company, the 2022 Digital Workshop Series also held a masterclass on data analytics. This ever-popular series will continue in 2023, hopefully with more in-person workshops. SUSTAINABLE DEVELOPMENT REPORT 2022 92
MENU PLACES PEPEOOPLPLEE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) People 2022 Progress Employment Profile Talent Attraction Talent Management Occupational Health and Safety Diversity and Inclusion Volunteering Employee Health and Wellbeing We value our employees and work to improve their health and wellbeing through a wide variety of events and activities held both in and out of the office. These events contribute positively to employee health and wellbeing, build rapport between employees and increase the level of employee engagement. The “1 & All Sports Challenge” Swire Properties added new ideas and elements based on the number “50” to our employee sports events this year, to help celebrate our 50th anniversary. One such activity saw all employees from Hong Kong and the Chinese Mainland attempt to collectively burn 5,000,000 calories during the 50 days between 1 November and 20 December. We also invited all departments to take part in a friendly competition, asking everyone to get creative and devise a sports activity that reflected both the idea of teamwork and our 50th anniversary. In addition, we set up five different exercise challenges in which individuals, teams and families were invited to compete – participants could join one or all of the challenges, and the top 10 finishers in each category won prizes. Prioritising Wellbeing and Mental Health Swire Properties cares deeply about the health and wellbeing of our employees. Throughout 2022, we demonstrated our care in various ways. The serious COVID-19 situation during the first half of 2022 meant that several staff had to endure quarantine arrangements, which was psychologically difficult. When our people were sent to quarantine centres, we ensured that they receive a care package which included food and leisure items to help them pass the time. Care packs were also distributed to all frontline staff during the worst weeks of the pandemic to provide support and show our gratitude for their professionalism. These packs included face masks, supplements and soup vouchers. June was wellness month at Swire Properties’ Hong Kong offices. To mark Global Wellness Day on 11 June, 18 fun and interactive workshops and webinars were held throughout the month of June to help staff relax and rejuvenate mentally and physically and generate inspiration on ways to lead healthier and happier lives. The activities included learning to create an aroma stone, an “art jam”, massage sessions, paper marbling, rainbow calligraphy, and other arts and crafts workshops. SUSTAINABLE DEVELOPMENT REPORT 2022 93
MENU PLACES PEPEOOPLPLEE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) People 2022 Progress Employment Profile Talent Attraction Talent Management Occupational Health and Safety Diversity and Inclusion Volunteering Hong Kong Wellness Initiatives Employee Wellness Programme All through 2022, the Swire Properties Employee Wellness Programme held activities and initiatives to boost health and happiness. These included the “Small Changes that Change Everything” workshop in February, in which experts explained how to make tiny behavioural changes that can slowly become habits to help people achieve goals like losing weight, de-stressing, sleeping better or being more productive. Online Wellness Sharing Online sharing sessions held in June focused on various mind and body wellness topics, such as “Caring for Your Eyes” – discussing the causes of common eye diseases and exercises that can prevent them; “Loving Monday” – sharing tips on how to boost energy and engage in positive thinking during the work week; and “The Science of Wellbeing” – discussing strategies on how to generate positivity in relationships, during challenges and at work. Photography Exhibition As part of our 50th anniversary celebrations, in July we arranged two guided tours to the “Recovery, Resilience, Resurgence” photography exhibition to give our staff a glimpse of Hong Kong’s story from recovery to resilience through the lenses of three photographers whose work spanned the 1940s to the 1970s. 50A Family Fun Day To celebrate Swire Properties’ 50th anniversary and the start of the festive season, we held a 50A Family Fun Day called “Party in SPROPS City” on 2 December 2022. Over 600 participants, including colleagues from all levels and their families and friends, participated in various games, arts and crafts workshops featuring gingerbread decoration, Christmas ornaments design and suncatcher candles making, and the parade. SUSTAINABLE DEVELOPMENT REPORT 2022 94
MENU PLACES PEPEOOPLPLEE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) People 2022 Progress Employment Profile Talent Attraction Talent Management Occupational Health and Safety Diversity and Inclusion Volunteering Chinese Mainland Wellness Initiatives With COVID-19 measures in place throughout the year, 2022 saw our Chinese Mainland staff prioritise their mental and physical health. Accordingly, we devised numerous activities and initiatives to promote health and happiness. Empathy and Care at Taikoo Li Qiantan The entire city of Shanghai was locked down from March to May 2022. Some employees at Taikoo Li Qiantan volunteered to stay at the mall, ensuring that essential operational and maintenance tasks were completed. These staff needed to stay in a “closed loop” and were not permitted to have physical contact with other people during this time. Swire Properties worked to make this environment as comfortable and human-centric as possible, providing designated bathroom facilities, a clothes-drying area, designated food pickup points, and a calming nucleic acid testing area. On top of providing meals to our staff, we supported staff wellbeing by offering comfortable accommodations, psychological counselling and inspirational online activities, and expressed our appreciation through gift cards, vegetable hampers and a daily stipend. We also created a “Delivery Personnel Supply Stop”, offering food and drinks to delivery workers as a token of thanks. Caring for Employees During the Chengdu Soft Lockdown During Chengdu’s citywide soft lockdown and COVID-19 testing initiative in early September, the Sino- Ocean Taikoo Li Chengdu team worked to ensure that our staff had access to essential materials including cots, sleeping bags, test kits, surgical masks, N-95 respirators, latex gloves, nutritious food and other daily necessities. Delivering Food to Employees During the Shanghai Lockdown As Shanghai grappled with a severe COVID-19 outbreak earlier in the year, the HKRI Taikoo Hui shopping mall was able to purchase fruit, vegetables, meat products and cooked meals which were delivered to all employees during April. We also included letters thanking them for their above-and-beyond contributions and encouraging them to stay healthy and strong during this unprecedented health crisis. SUSTAINABLE DEVELOPMENT REPORT 2022 95
MENU PLACES PEPEOOPLPLEE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) People 2022 Progress Employment Profile Talent Attraction Talent Management Occupational Health and Safety Diversity and Inclusion Volunteering Taikoo Hui Guangzhou Employee Rope Skipping Contest In July, more than 60 employees from Taikoo Hui Guangzhou joined a rope skipping contest organised as part of the workplace wellness campaign. Participants from different departments were challenged on their speed, stamina and skills in this fun event that also enhanced mutual understanding and friendship. The contest was part of the mall’s wider commitment to supporting employee mental and physical health on top of other measures, including an employee centre equipped with workout equipment and consistent efforts to promote a healthy work-life balance. Staff Club – Weekly Sports A variety of sports activities for staff were organised thrice weekly at Sino-Ocean Taikoo Li Chengdu. These included badminton, yoga, basketball and kickboxing. In 2022, more than 520 staff participated in these events, spending a total of 637 hours in a healthy, competitive environment. Frontline Office Upgrade at Sino-Ocean Taikoo Li Chengdu An upgrade to the Sino-Ocean Taikoo Li Chengdu frontline office commenced in March 2022. The project prioritised sustainability and staff wellbeing in all aspects of workplace design and management. Ergonomic furniture was chosen to ensure proper posture and avoid strains, and a nap area was built, giving shift staff a comfortable place to rest. SUSTAINABLE DEVELOPMENT REPORT 2022 96
MENU PLACES PEPEOOPLPLEE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) People 2022 Progress Employment Profile Talent Attraction Talent Management Occupational Health and Safety Diversity and Inclusion Volunteering Occupational Health and Safety (“OHS”) GRI We regard health and safety as an indispensable part of our business and have enshrined this in our SD 403 2030 Strategy and our 2025 and 2030 KPIs. Updated in November 2022, our Health and Safety Policy HKEX Aspect B2 (“the Policy”) underpins our commitment to providing and maintaining a healthy and safe environment KPI B2.3 for all employees, customers, contractors and members of our community during their association with the Company. Endorsed by the Board and signed by the Chief Executive, the Policy sets the direction on how to achieve our ultimate goal of Zero Harm through demonstrating solid leadership and effective management of occupational health and safety in the planning, design and conduct of all business activities. The relevant SDG is: SDG 3 Ensuring healthy lives and promoting wellbeing. Our Zero Harm Commitment Zero Harm is a Company-wide commitment to eliminate or mitigate health and safety hazards across our operations, encompassing all our people, regardless of their seniority or level of experience. The commitment requires everyone to go beyond compliance and proactively work on an ongoing basis to create a safe and harm-free working environment for all our stakeholders. To achieve Zero Harm requires a high level of commitment. It means no fatalities, no injuries and no harm to health as a result of our business activities. In July 2022, we appointed a Head of Health and Safety, a new position created to further strengthen and drive a health and safety culture, awareness and performance across our operations. The role reports directly to our Chief Executive with a functional reporting line to our Director. SUSTAINABLE DEVELOPMENT REPORT 2022 97
MENU PLACES PEPEOOPLPLEE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) People 2022 Progress Employment Profile Talent Attraction Talent Management Occupational Health and Safety Diversity and Inclusion Volunteering Safety Management Systems Swire Properties’ Safety Management System (“SMS”) is fully aligned to the ISO 45001:2018 standard, the international standard for Occupational Health and Safety Management. As at 31st December 2022, the SMS across our Hong Kong portfolio and 4 of our 6 Chinese Mainland portfolio are certified under ISO 45001:2018 by Hong Kong Quality Assurance Agency and China Quality Certification Centre. In 2022, we extended the ISO 45001:2018 certification to our managed residential portfolio in Hong Kong. The provision of healthy and safe workplaces is critical to our continued success. In 2022, we developed strategies to further integrate health and safety considerations into every part of our business. This approach is supported by strong leadership and management endorsement and oversight. Health and safety issues and performance are standard agenda items that are presented and discussed at monthly Executive Committee meetings chaired by the Chief Executive, reported in quarterly board papers and reviewed at every board meeting. The Chief Executive is accountable and oversees the implementation of OHS matters. Health and safety performance indicators are also presented to our parent company, Swire Pacific on a quarterly basis. Employee Engagement and Communication Effective communication and employee engagement are essential elements of our Zero Harm strategy. In 2022, we strengthened these elements by setting up quarterly health and safety communication sessions with all heads of departments and general managers. This has created a new two-way communication platform with the management team, which facilitates the efficient implementation of initiatives and sharing of essential feedback, enhancing awareness and promoting ownership of issues. Swire Properties has Safety Management System Steering Committees (SMSSCs) in place in Hong Kong and the Chinese Mainland. These are chaired by our Head of Health and Safety and include health and safety representatives from each portfolio. The SMSSCs meet quarterly to monitor and evaluate the Company’s safety performance, risks and progress towards targets. Findings and updates from the SMSSCs are communicated down to the portfolio level through each portfolio’s Health and Safety Working Group and human resources department. Similar health and safety coordination meetings are held with representatives from Swire Hotels and Brickell City Centre in Miami on a quarterly basis. SUSTAINABLE DEVELOPMENT REPORT 2022 98
MENU PLACES PEPEOOPLPLEE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) People 2022 Progress Employment Profile Talent Attraction Talent Management Occupational Health and Safety Diversity and Inclusion Volunteering Hazard, Near-miss and Incident Reporting In 2022, we implemented several improvement initiatives in our hazard, near-miss and incident reporting which, in accordance with SMS procedures, all our employees have a duty to report. While we continue to perform routine safety walks, we also introduced an app-based Near-miss and Hazard Reporting System which allows our employees to report any near-miss incidents or hazardous conditions via their mobile devices. The app not only enables corrective actions to be tracked and implemented faster, it also supports data analysis, making trend analysis and reporting easier. All workplace injuries are investigated in order to find and eliminate the root cause of the injuries and prevent reoccurrence. In 2022, we extended our investigation criteria to include high potential (“HiPo”) incidents, defined as non-serious injury incidents or near-miss events that have the potential to cause serious injuries or fatalities. A “four-box learning report” is produced which documents the findings for all HiPo incident investigations. These reports include information such as incident descriptions, contributing factors, underlying and root causes, and corrective plans and action plans. These reports are shared with the general managers of our portfolios and disseminated to employees via established communication channels. We also continued our management safety walks, during which senior employees undertake safety walks around properties to demonstrate leadership commitment as well as to identify potential hazards. In 2022, we introduced joint safety inspections at Two Taikoo Place, which are discussed later in this section. Mental Health and Wellbeing Every office in each of our portfolios recognises the importance of ensuring the wellbeing of their employees. As such, our offices have created tailored programmes and campaigns which support mental and physical health in different and locally relevant ways. We provide information to employees via the Company’s intranet, covering a range of topics relating to healthy work practices and office safety. We also conduct, on request, assessments of our employees’ workstation ergonomics, screen illumination and visual comfort. In addition, we provide counselling services and learning opportunities through our Employee Assistance Programme, which offers in-person counselling and 24-hour telephone support from relevant professionals. We also host regular events for our employees, such as luncheons and training sessions, to promote physical, mental and emotional wellness and work-life balance. In 2022, we provided around 34,000 hours of health and safety related training. SUSTAINABLE DEVELOPMENT REPORT 2022 99
MENU PLACES PEPEOOPLPLEE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) People 2022 Progress Employment Profile Talent Attraction Talent Management Occupational Health and Safety Diversity and Inclusion Volunteering 2022 Health and Safety Performance HKEX We prioritise the health and safety of our employees and pride ourselves on our safety-oriented KPI B2.1, B2.2 workplace culture. Health and Safety Performance We have maintained a record of zero workplace fatalities and serious or life-altering injuries among our employees. There have also been no confirmed incidents of non-compliance with relevant laws or regulations relating to the provision of a safe working environment and the protection of employees from occupational hazards. One of our 2025 KPIs is to achieve and maintain a Lost Time Injury Rate (“LTIR”) at or below 1.2 for non- hotel operations, and at or below 2.0 for hotel operations. Through investment in training and awareness programmes, we have achieved significant improvements in LTIR over the past 10 years. In 2022, our overall LTIR was 0.87, with hotel operations being 1.56 and non-hotel operations being 0.57. In 2022, our LTIR decreased by 9.4% compared to 2021; similarly, our Lost Day Rate (“LDR”)8 decreased by 12.4% over the same period. Employee LTIR and LDR Trends HKEX KPI B2.2 2020 2021 2022 LTIR 1.25 0.96 0.87 23.2% 9.4% change year-on-year change year-on-year LDR 48.80 35.86 31.42 26.5% 12.4% change year-on-year change year-on-year 8 Number of lost scheduled working days per 100 employees per year calculated by number of lost-time injuries/number of hours worked multiplied by 200,000. SUSTAINABLE DEVELOPMENT REPORT 2022 100
MENU PLACES PEPEOOPLPLEE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) People 2022 Progress Employment Profile Talent Attraction Talent Management Occupational Health and Safety Diversity and Inclusion Volunteering 2022 Employee LTIR and LDR, by portfolio LTIR LDR Properties 0.57 26.81 Hotels 1.56 41.77 Total 0.87 31.42 Trend Analysis of Lost Time Injury Rate (LTIR) from 2010 to 2022 6 Properties 5 Hotels Overall 4 R 3 I LT 2 1 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 SUSTAINABLE DEVELOPMENT REPORT 2022 101
MENU PLACES PEPEOOPLPLEE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) People 2022 Progress Employment Profile Talent Attraction Talent Management Occupational Health and Safety Diversity and Inclusion Volunteering Hong Kong Health and Safety Week Put on as part of our 50th anniversary celebrations, Health and Safety Week applauded our many “Original. Always.” occupational health and safety accomplishments and a safety culture that is renowned throughout the industry. Taking place every month from the beginning of the year through to January 2023, this year- long campaign targeted frontline Hong Kong employees, aiming to increase their safety awareness levels and offer high-level training, sharing sessions and fun activities. Highlights included an interview with Ms. Elizabeth Kok, Director and Senior Advisor, where she explains why health and safety is important to Swire Properties and shares her vision on workplace safety. The campaign also includes a “Mindset” programme to enhance health and safety concepts and behaviours among frontline employees through engaging activities such as virtual reality (“VR”) experiences, game booths, seminars and fitness workshops. Chinese Mainland Safety Month July marked Safety Month at our Chinese Mainland portfolios. Each property organised safety drills, training sessions and exercise programmes, with the view that “a little effort today will prevent injuries tomorrow”. We also celebrated the fact that Taikoo Hui Guangzhou received the Company’s annual Outstanding Health and Safety Award for the second year running; launched an AI-based smart construction safety system at several properties; and announced the rollout of the Near-miss Hazard Reporting System across all our Chinese Mainland properties as of mid-July. Lastly, the COVID-19 Personal Prevention Handbook was distributed to all Chinese Mainland employees, conveying up-to-date disease prevention knowledge and guidelines to everyone. SUSTAINABLE DEVELOPMENT REPORT 2022 102
MENU PLACES PEPEOOPLPLEE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) People 2022 Progress Employment Profile Talent Attraction Talent Management Occupational Health and Safety Diversity and Inclusion Volunteering VR Safety Training This year, we introduced safety training programmes that employ VR technology to deliver messages on property management-related safety topics. In Hong Kong, the programme employs 11 modules for frontline employees that provide realistic simulation training on hazards associated with working at height, and slip, trip and fall prevention. In the Chinese Mainland, we introduced four VR safety training modules on hazards associated with working at height, electrical work and equipment operation. EAST Hong Kong’s “Work Safely” Slip, Trip and Fall Prevention Campaign From June to November 2022, EAST Hong Kong posted weekly videos on the Beekeeper platform about slip, trip and fall prevention. Divided into three series, each with six levels, the videos covered information and tips about maintaining static and dynamic balance, along with fun facts about healthy lifestyles. The campaign also featured quizzes to help team members revise and consolidate their knowledge. Safety Inspections at Two Taikoo Place In 2022, we introduced joint safety inspections at Two Taikoo Place – which at the time was in the middle of handing over from the construction stage to the operations and fit-out stage. The Health and Safety team, Management Office (“MO”) team and Project team representatives all conducted joint safety walks during the handover. This was followed by daily safety inspections which included tenant facilities undergoing fit- out by their appointed contractors. We then gave safety briefings to tenant project managers and contractors on house rules, and communicated Swire Properties’ safety expectations to all tenants prior to their commencement of fit-out works through posters and guidelines. SUSTAINABLE DEVELOPMENT REPORT 2022 103
MENU PLACES PEPEOOPLPLEE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) People 2022 Progress Employment Profile Talent Attraction Talent Management Occupational Health and Safety Diversity and Inclusion Volunteering Swire Properties Internal Safety Awards Many of our properties reached or maintained internal health and safety standards this year, including Zero Lost Time Injury awards and our Outstanding Health and Safety Performance Award. 180 days Zero LTI awards in 2022: • Island Place • Cityplaza • Sino-Ocean Taikoo Li Chengdu • Taikoo Li Qiantan • Pacific Place Apartments • EAST Hong Kong • EAST Residences Hong Kong • The Temple House 500 days Zero LTI awards in 2022: • Citygate • INDIGO • HKRI Taikoo Hui • The Opposite House Both Cityplaza and Taikoo Hui Guangzhou won the internal Swire Properties Outstanding Health and Safety Performance Award in 2022, which is given to the management offices that demonstrate outstanding health and safety performance, good management practices and innovative approaches to improving health and safety in the workplace. SUSTAINABLE DEVELOPMENT REPORT 2022 104
MENU PLACES PEPEOOPLPLEE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) People 2022 Progress Employment Profile Talent Attraction Talent Management Occupational Health and Safety Diversity and Inclusion Volunteering Diversity and Inclusion GRI Swire Properties embraces Diversity and Inclusion (“D&I”) and understands the importance of a diverse 2-21, 405, 406 workforce to our business success. In 2022, we continued our work to build an inclusive and supportive HKEX Aspect B1 working environment through policies, engagement and education. The relevant SDGs are: SDG 5 Achieving gender equality and empowering women and girls. SDG 10 Reducing inequalities within and among countries. Our commitment to promoting diversity in the workplace is documented in our Corporate Code of Conduct and our Equal Opportunities Policy, both of which are communicated to our employees through our employee handbook. Additionally, the Swire Pacific Diversity and Inclusion Steering Committee formulates policies and provides guidelines to promote a diverse workforce and an inclusive working environment across the Swire Group. In 2021, Swire Properties became a corporate member of CareER, an NGO that provides career development opportunities to persons with disabilities and special educational needs. We also began participating in the CareER Disability Inclusion Index, a comprehensive and localised assessment tool that evaluates a company’s performance in terms of disability inclusion in its operations and services. This year, we began disclosing against the 2023 Bloomberg Gender-Equality Index (“GEI”), which acknowledges the Company’s commitment to achieving gender equality. D&I Policy Our D&I Policy reaffirms our commitment to creating an inclusive and supportive working environment for all our employees regardless of age, gender or gender reassignment, sex or sexual orientation, marital or family status, disability, race (including ethnic origin or nationality), and religious or political beliefs. Our D&I Committee is chaired by our Director, Human Resources and reports to the Executive Committee (“EXCOM”) on a quarterly basis. The D&I Committee’s responsibilities include ensuring equal opportunities, advocating fair and bias-free processes for recruiting, developing and promoting our employees, and monitoring our success in achieving D&I in our workplaces. The D&I Committee also serves as a governing body to review grievances relating to discrimination. As society evolves, so have the Company’s D&I practices. In 2021, to recognise our ever-more diverse workplace, we introduced new policies on respect in the workplace, staff grievances and parental leave. These new policies help foster an inclusive and supportive working environment for all our people by creating an environment where people feel comfortable and able to reach their full potential. In turn, this produces a workplace without harassment and bullying, and in which there are proper procedures to ensure that grievances and complaints are dealt with effectively, fairly and efficiently. SUSTAINABLE DEVELOPMENT REPORT 2022 105
MENU PLACES PEPEOOPLPLEE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) People 2022 Progress Employment Profile Talent Attraction Talent Management Occupational Health and Safety Diversity and Inclusion Volunteering Respect in the Workplace Policy Our Respect in the Workplace Policy aims to ensure that all our people are treated, and treat others, with dignity and respect. It outlines Swire Properties’ expectation that our people contribute to an environment of trust and respect and conduct themselves in a manner which is not offensive, or reasonably perceived by others to be offensive, and which takes due account of the diversity of others’ backgrounds, cultural values and beliefs. Behaviour which does not adhere to this policy will not be tolerated and will lead to disciplinary action being taken, up to and including dismissal. Parental Leave Policy and Guidelines Our Parental Leave Policy and Guidelines demonstrates Swire Properties’ commitment to supporting our employees when they start or grow their families, and our commitment to removing bias in the workplace. We recognise that there are many different types of family units, and we challenge the view that childcare is solely a female responsibility. Ultimately, we want our people to pursue fulfilling and successful careers while raising children. Providing appropriate levels of parental leave is key to this aim. The policy recognises all parents regardless of their gender or sexual orientation, how they became parents (whether by natural birth, surrogacy or adoption), and the nature or existence of a family unit. Flexible Working Policy Initiative Our Flexible Working Policy was launched in mid-2019. We introduced the Staggered Working Hours initiative to allow employees to arrive or leave the office at flexible times provided they are present during specified core working hours. Employees are able to balance their work with their personal commitments, helping advance our goal of building a more people-centric workplace culture. We believe that staggered working hours empower our employees to be more creative and productive. To augment this policy, we also launched the Sabbatical Leave Policy in January 2020. Sabbaticals allow an employee an extended period away from work, during which time they may recharge themselves, adjust to any life transitions, dedicate time to family matters, or develop their skillsets in various areas. Although this is unpaid leave, employees on sabbatical still enjoy selected staff benefits such as annual leave, medical benefits, training and the use of recreation facilities. Throughout the COVID-19 pandemic, we have continuously initiated other working alternatives across our offices, including distributed work, work-from-home and telecommuting arrangements. These policies vary according to need and geography. SUSTAINABLE DEVELOPMENT REPORT 2022 106
MENU PLACES PEPEOOPLPLEE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) People 2022 Progress Employment Profile Talent Attraction Talent Management Occupational Health and Safety Diversity and Inclusion Volunteering Female Representation in the Workforce (as at 31 December 2022) 40.2% of workforce are female Percentage of Senior Management Positions Held by Women (as at 31 December 2022) 38.2% of senior management positions are held by women Gender Pay Ratio (female to male) 1 : 0.92 (female to male) *In 2022, gender pay ratio is calculated based on a non-weighed average methodology. Chief Executive pay to Employee Pay Ratio 24.5 : 1 *Calculated as the ratio between the total annual compensation of the Chief Executive and the mean employee compensation SUSTAINABLE DEVELOPMENT REPORT 2022 107
MENU PLACES PEPEOOPLPLEE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) People 2022 Progress Employment Profile Talent Attraction Talent Management Occupational Health and Safety Diversity and Inclusion Volunteering Swire Properties listed on the Bloomberg Gender-Equality Index for the first time This year, Swire Properties began disclosing against the Bloomberg Gender-Equality Index (“GEI”), securing a position on the 2023 Bloomberg GEI list. The index includes 484 companies across 11 sectors from 45 countries. Of the five Hong Kong companies listed on this year’s index, three of them are Swire companies: Swire Properties, Swire Pacific and Cathay Pacific. This achievement reflects our dedication to advancing gender equality in the workplace. We have worked, and will continue to work, towards fostering an inclusive and supportive working environment for all our people by creating an environment where everyone feels comfortable and able to reach their full potential. This year, we developed targets around gender balance, seeking to maintain a workplace female representation of no less than 40%. In 2022, 40.2% of our workforce was female, with 38.3% of senior management positions held by women. Our gender pay ratio is very close to full equality, with the ratio being 1:0.98 (female to male) in 2022. The GEI is a modified market capitalisation-weighted index developed to gauge the performance of public companies in terms of gender-related data reporting. The index measures gender equality across five pillars: the leadership and talent pipeline, equal pay and gender pay parity, inclusive culture, anti-sexual harassment policies, and external branding. SUSTAINABLE DEVELOPMENT REPORT 2022 108
MENU PLACES PEPEOOPLPLEE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) People 2022 Progress Employment Profile Talent Attraction Talent Management Occupational Health and Safety Diversity and Inclusion Volunteering Swire Group Diversity and Inclusion Survey 2022 In 2022, Swire Properties took part in the Swire Group’s second annual D&I survey. The survey allows the company to garner feedback on the diversity approach and identify opportunities to improve workplace inclusivity where our employees can thrive and succeed regardless of age, gender, gender identity, disability, ethnicity, sexual orientation and other characteristics. The objectives of the survey were to understand the extent to which our people feel the Company has an inclusive work environment where ideas and voices are heard, supported and respected, and to collect demographic data to better understand our workforce and ensure our D&I strategies and initiatives are inclusive and accessible to all groups. This survey will help us shape and refine our D&I policy and strategies on an ongoing basis. The survey reached out to over 73% of our employees from our Hong Kong portfolio, Chinese Mainland portfolio and Hong Kong hotels, of which around 15% responded to the survey. Preliminary results revealed that: • 89% of the respondents agreed that the Company values and respects a variety of ideas, perspectives and working styles. • 86% of the respondents agreed that the Company has created an environment where people of diverse backgrounds can succeed. • 87% of respondents agreed that the Company’s senior leadership publicly supports and promotes diversity initiatives. • 82% of respondents agreed that the Company’s D&I-related policies and procedures are fairly enforced throughout the Company’s operations. The survey’s demographic data revealed a number of workforce diversity indicators: • Around 93% of respondents self-identified as Chinese, followed by 2% as Other Asian, 1% as White, while 4% of respondents preferred not to answer. • At the management level, around 94% of respondents self-identified as Chinese, followed by 1% as Other Asian, 1% as White, 1% as Mixed and 3% of respondents preferred not to answer. • 6% of respondents self-identified as LGBT+. • 1% of respondents self-identified as having a disability. SUSTAINABLE DEVELOPMENT REPORT 2022 109
MENU PLACES PEPEOOPLPLEE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) People 2022 Progress Employment Profile Talent Attraction Talent Management Occupational Health and Safety Diversity and Inclusion Volunteering Pride Month June 2022 marked Swire Properties’ celebration of Pride Month, which “commemorates years of struggle for civil rights and the ongoing pursuit of equal justice under the law for the lesbian, gay, bisexual, transgender and queer community, as well as the accomplishments of LGBTQ individuals9”. As we celebrate 50 years of success as a team, it is more important than ever that we foster an inclusive culture where our LGBTQ+ colleagues feel seen and safe in bringing their authentic selves to work. To celebrate the month, our D&I Committee organised a calendar of special events. This began with the launch of our Pride 2022 video featuring our people, a set of Pride-themed Microsoft Teams backgrounds and a special-edition postcard with a rainbow QR code that took colleagues to a Pride mini-quiz. A “lunch and learn” workshop on “Creating an LGBTQ+ Friendly Workplace” was led by a community sex educator who shared general misconceptions about sex and gender, advised on how to use inclusive language and support an LGBTQ+ friendly workplace, and talked about his own experiences of being queer in Hong Kong. An exclusive movie screening and a Pride-themed rainbow cocktail-making class held at our Mr & Mrs Fox restaurant rounded out the month’s office-related events in Hong Kong. The Upper House committed to donating 5% of the proceeds from a series of events and activities held during Pride Month to Hong Kong Marriage Equality. These events included a Pride cocktail event, themed Sunday Sessions, a drag evening, and more. The hotel extended this charitable initiative by continuing the 5% contribution to Hong Kong Marriage Equality from additional drag nights held through to the end of 2022. Brickell City Centre (“BCC”) in Miami hosted its second annual month-long “Pride at BCC” celebration in June 2022. Held in collaboration with various partners, Pride at BCC provided a safe space where guests were welcomed to celebrate our unique differences under the banner of equality. Events during the month included sponsored complimentary cocktail- making classes each weekend, classes hosted by drag queens from TV’s “RuPaul’s Drag Race”, and storytelling seminars. The mall also highlighted retailers with their own equality-related stories to tell and partnered with the Miami-Dade Police Department and 14 other law enforcement agencies from Miami- Dade and Broward Counties. Pride-branded vehicles were paraded and on display at BCC, and officers were invited for a small celebration. 9 https://www.britannica.com/story/why-is-pride-month-celebrated-in-june SUSTAINABLE DEVELOPMENT REPORT 2022 110
MENU PLACES PEPEOOPLPLEE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) People 2022 Progress Employment Profile Talent Attraction Talent Management Occupational Health and Safety Diversity and Inclusion Volunteering Pink Friday Swire Properties’ annual celebration of Pink Friday fell on 18 November. This multi-industry event takes place in workplaces across Hong Kong every year, aiming to show visible support for the LGBTQ+ community and celebrate the importance of inclusive and diverse workplaces. A video explanation of Pink Friday’s origins and significance to the wider Swire Group can be found here. At our offices, this year’s event included a slogan competition, a Pink Friday quiz, a fair with an array of games booths and a best-dressed competition. Additionally, during the week, an F&B outlet at Blueprint offered a pink bento box special. Empowering Women Swire Properties’ continues to empower women in the Company and in all areas of society gathered momentum in 2022. A host of initiatives and events across our portfolios underlined our commitment to advancing equality everywhere. International Women’s Day in Hong Kong International Women’s Day (“IWD”), held on 8 March, is a global campaign to raise awareness of gender equality and encourage everyone to play their part and help create a world free of bias, stereotypes and discrimination. Leading up to IWD, the Swire Women’s Network hosted a virtual celebration on 3 March, featuring invited speakers and the screening of a video featurette on this year’s theme, #BreakTheBias. The “Break the Bias” theme illustrated how, as an organisation, we are committed to eliminating gender barriers to create a more inclusive workplace for both women and men. To understand more about what Break the Bias means to our people, we spoke to colleagues from Hong Kong, the Chinese Mainland and the U.S.A. – a video of their thoughts can be found here. On 8 March, we marked IWD with an interactive workshop that showcased excerpts from “She Objects”, a documentary on gender stereotypes in the Hong Kong media, featuring insights from celebrities and interviews with leading experts. Blueprint also invited two female leaders to share their journey to success and how they are forging change in the world. SUSTAINABLE DEVELOPMENT REPORT 2022 111
MENU PLACES PEPEOOPLPLEE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) People 2022 Progress Employment Profile Talent Attraction Talent Management Occupational Health and Safety Diversity and Inclusion Volunteering International Women’s Day in the Chinese Mainland Taikoo Li Sanlitun honoured women in the community on IWD, welcoming visiting women researchers from the Chaoyang District Commerce Bureau and bringing flowers to female volunteers in the DongSanLi resident community. Ahead of IWD, Swire Properties hosted a fresh flower floral design workshop for residents of Beisanli, a neighbourhood in Beijing. The workshop had an accredited professional share basic floristry techniques and skills, showing participants how to match the leaves, colours and proportions of each element to create better visual effects. Pink House Pop-Up at HKRI Taikoo Hui Between July and October 2022, HKRI Taikoo Hui held a charity initiative called “Pink House” in partnership with Be Pink, a women’s programme run by a foundation. With a mission to help women develop awareness and strengthen their sense of self-worth, the pop-up store became a place for women to meet, exchange knowledge and join diverse activities to build a joyful community where women could relieve stress and find inner peace. The Pink House pop-up also held various charity-themed workshops and promotional activities where the public could learn more about various charitable initiatives. Kartini Day On 21 April, our Savyavasa team in Jakarta marked Kartini Day, an important day in Indonesia that celebrates the birthday of iconic human rights advocate Raden Adjeng Kartini. Kartini Day acknowledges the activist’s efforts to emancipate and empower women in Indonesia. The team filmed a special Kartini Day video in the marketing gallery of the newly-completed Savyavasa development, dancing to promote diversity and empower women in the workplace. SUSTAINABLE DEVELOPMENT REPORT 2022 112
MENU PLACES PEPEOOPLPLEE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) People 2022 Progress Employment Profile Talent Attraction Talent Management Occupational Health and Safety Diversity and Inclusion Volunteering Taikoo WIN The Taikoo Women’s Inspire Network (“Taikoo WIN”) is a business network established by the Company and two of our Taikoo Place tenants, aiming to create a community in support of women working for professional firms and companies based in the Taikoo Place area. In addition to several online gatherings, Taikoo WIN hosted an in-person event in August called “Leadership in the ’new’ normal: Navigating a world post-COVID”, which explored the impacts of the new environment on personal and professional lives and how to engage employees and customers during this period of uncertainty. The wide-ranging discussion came to several conclusions, including that companies should offer accessible mental health support, help upskill employees with digital and technological skills to stay ahead of trends, and that leaders need to be emotionally intelligent and empathetic. Social Inclusion Social Inclusion CareER Disability Inclusion Index and Inclusive Recruitment Fair This year, Swire Properties continued our participation in the CareER Disability Inclusion Index. This index helps organisations create a structured framework of disability inclusion strategies to meet their various ESG objectives. We provided data for the index and received results in October 2022. Swire Properties received higher than average ratings across the board, with particularly high marks in recruitment and accommodation and adjustment. Our results were also significantly higher than in 2021, indicating that our new D&I initiatives are bearing fruit. Swire Hotels participated in the Inclusive Recruitment Fair 2022 organised by CareER in Hong Kong. At the event, Swire Hotels promoted job opportunities to highly educated students and graduates with disabilities and special needs. Internships for Minority Students In the summer of 2022, Swire Properties worked with the Zubin Foundation and the Amber Foundation to provide internship opportunities to students from ethnic minority groups. Four university students joined us as interns, with two working in our legal department, one in our Taikoo Place management office and one in Blueprint. SUSTAINABLE DEVELOPMENT REPORT 2022 113
MENU PLACES PEPEOOPLPLEE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) People 2022 Progress Employment Profile Talent Attraction Talent Management Occupational Health and Safety Diversity and Inclusion Volunteering The UPSTAIRS Programme 2022 marked the fourth year of The Upper House’s collaboration with the Hong Kong Down Syndrome Association (“HKDSA”) in the UPSTAIRS programme, which creates training and work experience opportunities for Down Syndrome individuals. This year saw 10 HKDSA members attached to five departments during the month-long programme. After a briefing by HKDSA social workers about Down Syndrome, our team members then worked alongside the HKDSA members for the month, learning about the challenges Down Syndrome individuals face when performing daily tasks. This positive, inclusive programme brought joy and camaraderie to everyone who participated. Age Inclusion Workshop Age is one of the five diversity focus areas at Swire Properties, part of our pledge to create an age-neutral, multi-generational workplace. To increase awareness about the benefits of such a workplace, we arranged an age inclusion Lunch and Learn workshop called “Purpose Through the Ages” led by a leadership coach. Various discussions and exercises helped the participants discover how values and purposes evolve as one moves through different life stages, and learn how to connect with colleagues of all ages in order to develop greater empathy for others and create a more inclusive environment. Celebrating Black History Month For the first time, Brickell City Centre hosted a month-long celebration honouring Black History Month. Partnering with the South Florida People of Color organisation, the mall hosted a weekly performance art series honouring Black culture. Every Friday evening in February, the mall’s Garden Deck was transformed into a performing arts centre which celebrated a different culture each week. Performances included singing, dancing and instrumental performances from cultures represented throughout Miami. SUSTAINABLE DEVELOPMENT REPORT 2022 114
MENU PLACES PEPEOOPLPLEE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) People 2022 Progress Employment Profile Talent Attraction Talent Management Occupational Health and Safety Diversity and Inclusion Volunteering Employee Events Chinese Mainland “D&I Lunch and Learn” Webinars Three D&I Lunch and Learn webinars were held by the D&I Committee’s Chinese Mainland Chapter in 2022. In March, the “Primer to Inclusive Communication” webinar welcomed 50+ participants, while in August, the “Introduction to Mental Wellbeing” workshop had over 70 people take part. These two webinars were run by an executive coach and representatives from a Beijing-based wellness organisational consultancy and training company, who introduced verbal and non-verbal communication techniques to address unconscious biases, raise mental health awareness and build a more inclusive workplace. The third, held in early December, was called “Why Gender Equality Matters to me”. Over 80 staff attended, learning from the founder of a social enterprise that promotes gender diversity and inclusion in science, technology, engineering and mathematics (STEM). Celebrating World Day for Cultural Diversity for Dialogue and Development In Hong Kong in May, Swire Properties hosted an event in collaboration with The Zubin Foundation on World Day for Cultural Diversity for Dialogue and Development. Our two panel sessions welcomed subject matter experts and industry peers who discussed the challenges facing ethnic minority groups in Hong Kong and how these can be addressed by communities and businesses, with the goal being to understand the role cultural diversity plays in enabling sustainable development. About 40 Swire Properties staff attended the sessions, discussing how these challenges affect our lives and business, and brainstorming ways to bring about positive change. “Uncomfortable Conversation” Seminar and Webinar Series Riding on the successful launch of the Male Ally initiative in May 2021 – a network of allies who promote gender equality – we began a new seminar and webinar series in 2022 called “Uncomfortable Conversations”. The series aimed to spark conversations between our staff and industry experts about sensitive gender equality topics such as bias and gender privilege. The Uncomfortable Conversations initiative has three main goals: to promote, pledge and empower everyone, especially men, to actively work to strengthen bonds within our community; to advocate for underrepresented people in day-to-day settings; and to ensure that D&I issues are actively considered and implemented in recruitment, job flexibility, promotions and rewards. While the series acknowledges that some discussions may cause discomfort, it is believed that important and necessary changes can be made to attitudes, communications, engagement and culture through honest and open discussions. SUSTAINABLE DEVELOPMENT REPORT 2022 115
MENU PLACES PEPEOOPLPLEE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) People 2022 Progress Employment Profile Talent Attraction Talent Management Occupational Health and Safety Diversity and Inclusion Volunteering Board Diversity Our Board Diversity Policy recognises the value of diversity in the composition of our Board and endorses the principle that our Board should cultivate a balance of skills and experience as well as a diversity of perspectives that are aligned with our business. In 2022, we revised our policy to provide enhanced disclosure on policy ownership. The Nomination Committee has been delegated with the responsibility for the implementation and monitoring of this policy. This year, we introduced board diversity targets to monitor the implementation of the Board Diversity Policy. The target will guide us to develop strategies to improving the diversity across our Board. Performance will be published in our Company’s annual reports and SD reports. We are committed to maintain a 30% female representation on the Board. As at the end of 2022, 31% of the Board position are represented by women. Board Diversity (as at 31 December 2022) By gender 2022 2022 Male 69% Female 31% 2021 2021 Male 69% Female 31% 2020 2020 Male 67% Female 33% By age group 2022 2022 30 to 50 years old Over 50 years old 23% 77% 2021 2021 30 to 50 years old Over 50 years old 23% 77% 2020 2020 30 to 50 years old Over 50 years old 25% 75% 2022 2021 2020 SUSTAINABLE DEVELOPMENT REPORT 2022 116
MENU PLACES PEPEOOPLPLEE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) People 2022 Progress Employment Profile Talent Attraction Talent Management Occupational Health and Safety Diversity and Inclusion Volunteering By local/non-local 2022 2022 Local Non-local 62% 38% 2021 2021 Local Non-local 54% 46% 2020 2020 Local Non-local 67% 33% 2022 2021 2020 By year of service 2022 2021 4 to 9 years 31% 4 to 9 years 31% 2022 3 years or below 38% 2022 2021 Over 9 years 31% 3 years or below 46% 2021 Over 9 years 23% 2022 2021 Additional information about the diversity of our Board members is available in the Swire Properties Annual Report 2022. SUSTAINABLE DEVELOPMENT REPORT 2022 117
MENU PLACES PEPEOOPLPLEE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) People 2022 Progress Employment Profile Talent Attraction Talent Management Occupational Health and Safety Diversity and Inclusion Volunteering Volunteering GRI Together, We Build Communities! 413 HKEX Swire Properties has always been taking a leading role to create positive impact in the community. Our Aspect B8 people are vital in our connection to the community. A big part of this involves engaging its employees KPI B8.1, B8.2 actively, in the spirit of philanthropy and volunteerism, to give back to the community. The Swire Properties Community Ambassador programme is the platform that brings our families and friends, Swire retirees, our business partners, office workers at our managed portfolios, our shoppers as well as the service users of our charity partners together. Together, we create sustainable value through innovative community programmes that can make positive impacts to enrich people’s lives and the community as a whole. Our Growing Community of Ambassadors The Swire Properties Community Ambassador programme is an ever-growing network in community care amongst our Hong Kong, the Chinese Mainland and Miami development. Our community investment programmes focus on creating maximum placemaking impact, youth development, social inclusion, community-building & sustainable development. As our Chinese Mainland portfolio continues to grow, we continue to seek ways to organise more cross-city volunteer initiatives to strengthen the connections between our Hong Kong and Chinese Mainland Community Ambassadors and encourage everyone to take part in volunteering. For every 10 hours of voluntary service completed, our employees are eligible to receive one extra day of leave, capped at two days per year. However, pandemic-related restrictions on travel and gatherings throughout the year curtailed these actions across our portfolio during 2022. SUSTAINABLE DEVELOPMENT REPORT 2022 118
MENU PLACES PEPEOOPLPLEE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) People 2022 Progress Employment Profile Talent Attraction Talent Management Occupational Health and Safety Diversity and Inclusion Volunteering Community Ambassador Programme Volunteer Hours, by focus area 73 6,127.5 Activities supported Total volunteer hours Elderly 4% Health & Wellbeing 7% Environmental 51% Education 8% Community 30% Community Investments and Contributions in 2022 HKD44 million HKD26 million Total Value of Cash Total Value of In-kind Contributions Contributions SUSTAINABLE DEVELOPMENT REPORT 2022 119
MENU PLACES PEPEOOPLPLEE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) People 2022 Progress Employment Profile Talent Attraction Talent Management Occupational Health and Safety Diversity and Inclusion Volunteering Volunteer Initiatives in Hong Kong BOOKS for LOVE @ $10 The “BOOKS for LOVE @ $10” campaign is an annual fundraising event that aims to pass on the joy of reading through collecting and selling donated second-hand books. This year marked the campaign’s 10th anniversary, and to celebrate, we launched a number of new initiatives, including the first-ever online book sale; a “Gift a Book” programme where people bought book coupons online which were then donated to less-privileged students; and an extended in-person book sale which raised a record HKD1 million plus and attracted over 30,000 visitors to Taikoo Place. Since its launch, the initiative has been consistently popular, winning support from our customers, tenants and the general public and gathering tens of thousands of donated books every year. The collected books are sorted and categorised by our Community Ambassadors and volunteers from our NGO partners, and then sold for HKD10 per book. This year’s event mobilised 6,000 volunteers, with the proceeds raised going to The Boys’ & Girls’ Clubs Association of Hong Kong and the Agency for Volunteer Service. ® ® LEGO SERIOUS PLAY for the Community Adding some fun to our 50th anniversary celebrations, the Community Ambassador team ® ® hosted a few LEGO SERIOUS PLAY workshops in 2022, reusing LEGO® bricks from past exhibition panels to inspire children in the community. Last year, the Ambassador team celebrated 20 years of community service with a roving exhibition where the event backdrops and panels were made from LEGO® bricks. ® ® Led by experienced LEGO SERIOUS PLAY trainers, several family-friendly workshops were offered to our young Ambassadors and children in need from our NGO partner. The workshops taught children about the importance of eco-friendly living as they enjoyed hours of LEGO® play. SUSTAINABLE DEVELOPMENT REPORT 2022 120
MENU PLACES PEPEOOPLPLEE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) People 2022 Progress Employment Profile Talent Attraction Talent Management Occupational Health and Safety Diversity and Inclusion Volunteering Eco-art Miniature Christmas Tree Workshops In advance of Christmas 2022, we organised 10 eco-art miniature workshops for our staff, their family and friends, our tenants and NGO partners. Making use of wood upcycled from last year’s White Christmas Street Fair, the Ambassador team created 200 Christmas tree miniatures. Led by a miniature artist, the participants used clay to breathe new life into the upcycled wood and create their own miniatures. Volunteer Initiatives in the Chinese Mainland “Mr Fix-it” Taikoo Hui Guangzhou hosted two sessions of the popular “Mr Fix-it” activity this year – an initiative that aims to help improve homes and support grassroots families in the community. In May, our Community Ambassadors partnered with a company to give a fresh new look to the home of a family dependent on social subsidies in Tianhe District. In August, in partnership with a hotel, our Community Ambassadors helped a community in Baiyun District turn an idle business flat into a fun house for kids. Eighty Ambassadors, social workers and partner volunteers joined the programme, contributing nearly 700 hours of volunteer time. SUSTAINABLE DEVELOPMENT REPORT 2022 121
MENU PLACES PEPEOOPLPLEE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) People 2022 Progress Employment Profile Talent Attraction Talent Management Occupational Health and Safety Diversity and Inclusion Volunteering Walk for Love Organised by a provider of volunteer services for companies in the Foreign Enterprise Service Corporation system, the “Walk for Love” event has become Beijing’s largest charity walk for enterprise volunteers, supporting the healthy growth of disadvantaged rural and urban children since its launch in 2012. Community Ambassadors from Swire Properties’ developments in Beijing, Chengdu, Guangzhou, Shanghai, Shenzhen, and Xi’an all walked with their friends and family members and shared their walking data online. For every two kilometres walked by a participant per day, Swire Properties donated between three to five RMB to the campaign. The funds raised were used to buy toothpaste, toothbrushes, soap, and other hygiene supplies for boarding school students in Qinghai Province, helping schools to improve student health. An additional group walk in October saw Community Ambassadors in Beijing complete a five-kilometre hike along a mountain track, raising more funds and getting fit at the same time. Taikoo Hui Guangzhou Community Ambassadors Clean Popular Trail More than 50 Community Ambassadors from Taikoo Hui Guangzhou helped remove about 35kg of rubbish from a famous footpath linking two villages in the city’s Conghua district. Part of the mall’s annual tree planting programme, the event, held in mid-March, added green space and kept the environment clean. During the 10km hike, they enjoyed beautiful views, collected rubbish and put their commitment to sustainable development into practice. SUSTAINABLE DEVELOPMENT REPORT 2022 122
MENU PLACES PEPEOOPLPLEE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) People 2022 Progress Employment Profile Talent Attraction Talent Management Occupational Health and Safety Diversity and Inclusion Volunteering Sichuan Community Centre Summer Activities Part of Swire Properties’ earthquake relief efforts in 2013 included building the Sichuan Community Centre in Shuanghong Village. In the five years since the centre’s completion in 2017, it has held several events to support and assist local children, elderly people and women. This year, two civil society organisations helped support a one-day children’s day camp based at the centre that brought together fun, knowledge sharing and the spirit of giving. During the study tour in the century-old Chengdu YMCA building on Chunxi Road, the children learnt about history and how the generations before them inherited and spread values based on mutual care and support. The children and volunteers then made traditional dragon boat paper models as part of the Dragon Boat Festival and presented them to Chengdu sanitation workers along with messages of thanks to those who help keep the city’s environment clean and beautiful. Another event saw Community Ambassadors plan and implement a “Forest Kingdom” camp for 30 third- to sixth-grade students that included games, teambuilding sessions and craft workshops. Another initiative encouraged children to give back to the community and make a difference by assisting older people living alone while enriching their own wellbeing and understanding of life. After some basic training, the children, assisted by a social worker, purchased daily necessities and helped clean the houses of these elderly people during the Chinese New Year holiday period and in the summer. The programme won strong support from parents who encouraged their children’s participation and donated relief supplies. SUSTAINABLE DEVELOPMENT REPORT 2022 123
Swire Properties aims to continue to develop long-term, mutually beneficial relationships with our business partners and other key parties to improve our SD performance.
MENU PLACES PEOPLE PAPARRTTNNEERRSS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Partners 2022 Progress Suppliers Tenants Customers Residential Owners, Occupiers and Serviced Apartment Residents Our SD 2030 Strategy focuses on working with all our partners to achieve our SD objectives, including suppliers, tenants, customers, residential owners and occupiers, as well as governments, NGOs and joint venture partners. 2022 Progress With 24 representatives from different functions within the Company, the composition of our Partners Working Group reflects our commitment to engaging with as many partners as possible, including local partners in all places where we have a significant presence. In 2022, we conducted a review of our Supplier Code of Conduct (“SCoC”) to ensure alignment with global best practices in terms of supply chain working conditions, fair and respectful treatment of employees and business ethics that are material to the business of Swire Properties. We continued to work closely with our partners and began making progress towards our 2025 and 2030 KPIs. Our progress this year is summarised in the table below. Progress Summary Table Suppliers Monitoring (Compliance) 2025 KPI Progress Updates in 2022 • Maintain 100% implementation of • It is now standard practice to require the SCoC in all portfolios that all suppliers in Hong Kong, Chinese Mainland and Miami, U.S.A. comply with the SCoC. • In 2022, we conducted an annual supply chain risks assessment of over 300 of our Tier-1 suppliers. Driving Impact 2025 KPI Progress Updates in 2022 • 25% of products and services • In 2022, 17% of the products and purchased for wholly-owned new and services purchased were sustainable. existing investment portfolios shall be sustainable SUSTAINABLE DEVELOPMENT REPORT 2022 125
MENU PLACES PEOPLE PAPARRTTNNEERRSS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Partners 2022 Progress Suppliers Tenants Customers Residential Owners, Occupiers and Serviced Apartment Residents Contractors Health and Safety 2025 KPI Progress Updates in 2022 • Reduce 5-year rolling average of accident • Achieved a reduction of rate per 1,000 contractor workers10 in 64% in accident rate. our Hong Kong development projects by 50% Tenants Tenant Engagement 2025 KPI Progress Updates in 2022 • 50% of office tenants in wholly-owned • In 2022, 52 tenants signed the Green portfolios11 to sign the Green Performance Performance Pledge, representing Pledge to jointly improve environmental 37.9% of our office tenants in Hong performance by 2025 Kong. • In December 2022, we launched the Green Performance Pledge pilot in the Chinese Mainland. 10 Using 2015-2019 (5-year average) as baseline. Accidental rate represents the number of reportable accidents per 1,000 contractor workers. It is calculated as the total number of reportable accidents multiplied by 1,000 and then divided by average daily number of contractor workers on-site. 11 Measured by occupied lettable floor area (“LFA”) of office portfolios at 100% basis comprising of Taikoo Place and Pacific Place in Hong Kong and Taikoo Hui Guangzhou. SUSTAINABLE DEVELOPMENT REPORT 2022 126
MENU PLACES PEOPLE PAPARRTTNNEERRSS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Partners 2022 Progress Suppliers Tenants Customers Residential Owners, Occupiers and Serviced Apartment Residents Suppliers We work closely with a wide range of suppliers, including architects, designers, consultants, service providers, contractors and vendors. These engagements impact the implementation of our SD 2030 Strategy in several dimensions, including occupational health and safety, waste, long-term decarbonisation and building/asset investments. Supply Chain Profile GRI 2-6 Number of suppliers, by geographical region HKEX (as at 31 December 2022) KPI B5.1 ~2,100 ~2,300 Hong Kong Chinese Mainland ~400 ~100 U.S.A. Southeast Asia Region The suppliers mainly include following categories: construction, engineering services, utilities, cleaning, operational services (e.g. IT, HR & Admin, Marketing). SUSTAINABLE DEVELOPMENT REPORT 2022 127
MENU PLACES PEOPLE PAPARRTTNNEERRSS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Partners 2022 Progress Suppliers Tenants Customers Residential Owners, Occupiers and Serviced Apartment Residents Supplier Code of Conduct GRI Swire Properties’ Supplier Code of Conduct (“SCoC”) sets out the minimum standards and practices for 308, 414 our suppliers relating to legal and regulatory compliance, environmental protection, health and safety, HKEX labour practices, and other areas. This policy extends to subcontractors working on projects for Swire Aspect B4, B5 Properties. KPI B4.1, B4.2, B5.2 In 2022, we revised the SCoC to include modern slavery, and provided more details around the definition of child and forced labour. Under the revised policy, no person who works for Swire Properties can be below 16 years of age and below 18 years of age for employment at night, unless they are part of a recognised professional apprenticeship programme. To ensure proper respect for human rights throughout our business, including our supply chain, we require that all our suppliers not to use any form of forced labour, which now includes imprisoned, indentured, bonded, military or slave labour. Physical punishment, threats of violence or other forms of physical, sexual, psychological or verbal abuse should not be used. The definitions around D&I were expanded to include age, gender, gender orientation, sexual orientation, relationship, family status, disability, race, ethnicity, nationality and religious or political beliefs. The expectations around compensation and working hours were strengthened. We expect suppliers to provide their employees with written and understandable information about their conditions of employment, with respect to wages and working hours, before they enter employment and be paid regularly and on-time. A section on whistleblowing was also included to allow the reporting of misconduct. In addition to encouraging our suppliers to have their own supplier codes of conduct in place, we require that all our suppliers adopt and implement policies and procedures that prevent bribery, corruption and fraud in their own operations. Suppliers that fail to comply fully with our SCoC risk termination of their contracts, subject to the contractual terms therein, and removal from our approved contractors list. We utilise an e-Contractor List Management System, providing a framework to monitor the performance of technical service providers and handle any disciplinary issues. Service providers are now required to perform well in five areas – health and safety, environment, procurement, management, and quality – or risk disciplinary action. The relevant SDG is: SDG 12 Ensuring sustainable consumption and production patterns. SUSTAINABLE DEVELOPMENT REPORT 2022 128
MENU PLACES PEOPLE PAPARRTTNNEERRSS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Partners 2022 Progress Suppliers Tenants Customers Residential Owners, Occupiers and Serviced Apartment Residents Supplier Compliance Monitoring GRI We work closely with our suppliers to collect accurate and up-to-date information about their 308, 403, 414 environmental, social and governance practices and performance. HKEX Aspect B4, B5 Our e-Contractor List Management System is integrated with our vendor requisition process in Hong KPI B4.1, B4.2, B5.2, B5.3 Kong and the Chinese Mainland. This automated platform facilitates supplier selection, management and performance analysis and allows for timely updates of supplier information. For new suppliers to be included on the list of approved contractors, they must first complete self- assessment questionnaires to confirm that they have appropriate policies and systems in place to comply with our SCoC. We monitor the compliance status of suppliers on our approved contractors list on an ongoing basis. In addition to requesting regular self-assessments, we may also undertake supplier site visits, request that our suppliers obtain independent certification in accordance with internationally recognised standards, and submit environmental and health and safety management plans for our internal review. We continuously refine our performance management system for technical services providers. Any act of non-compliance or malpractice in the areas of health and safety, environment, procurement, quality and site management is recorded, and the technical provider will be subject to disciplinary action. In 2022, we conducted a comprehensive risk assessment of over 300 Tier-1 suppliers, identified as either critical suppliers, high-volume suppliers, high-spending suppliers or non-substitutable suppliers, to confirm their compliance with our SCoC and that there were no violations of human rights issues. These suppliers are based in Hong Kong, the Chinese Mainland and the U.S.A., and together they contributed to more than half of our procurement spend in 2022. According to our findings, none of these suppliers were considered “high risk” under our Enterprise Risk Management System (“ERM System”). There were also no incidents of human rights violations identified across our operations in 2022. Since 2021, our technical services and sustainable development department has conducted on-site inspections for selected technical contractors in Hong Kong. These inspections are essential to fulfilling our ISO 14001 environmental management system requirements. In 2022, no non-compliance or malpractice incidents were recorded during the on-site inspections. Through these inspections, several opportunities for continual improvement were identified and we are communicating with the responsible parties to initiate follow-up actions. SUSTAINABLE DEVELOPMENT REPORT 2022 129
MENU PLACES PEOPLE PAPARRTTNNEERRSS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Partners 2022 Progress Suppliers Tenants Customers Residential Owners, Occupiers and Serviced Apartment Residents Smart Construction CONDUCTOR System In 2022, as part of our wider ambition to drive and adopt smart safety construction and digitalisation at our projects, Swire Properties worked with a consultant to develop and adopt the innovative CONDUCTOR smart construction system during work on our Six Pacific Place project. CONDUCTOR is a dedicated tool that allows users to monitor multiple construction data streams and multiple construction sites simultaneously, greatly enhancing efficiency, task management and safety. CONDUCTOR uses data drawn from a variety of tools and applications to provide holistic smart construction support to the project team. These include various task management applications, Internet of Things (“IoT”) sensors, AI video analytics, smart helmets, smart watches, and more. In addition to providing real-time data and monitoring, the system also facilitates cross-site performance comparisons and enable performance benchmarking over time. CONDUCTOR was piloted on the Six Pacific Place project and was recognised with a 2022 CIC Construction Innovation Award organised by the Construction Industry Council. Green Site Office for Taikoo Li Xi’an Before commencement of construction work by the main contractor, the archaeological excavation is being proceeded now. A series of SD initiative related measures facilitating a green site office have been enforced as described as follows: • Recycling of 7,000 bricks from the existing site wall were reused to erect hoardings which aesthetically match the site surrounding. • Solar panels for lighting and charging pillars for electric car are used on-site. • Staff are encouraged to reduce water consumption, while food wastes are collected to become fertiliser for farming after treating. • Part of the site has been arranged as a small farm, where nearby residents can be invited to participate in farming to raise their awareness of the importance of environmental protection. SUSTAINABLE DEVELOPMENT REPORT 2022 130
MENU PLACES PEOPLE PAPARRTTNNEERRSS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Partners 2022 Progress Suppliers Tenants Customers Residential Owners, Occupiers and Serviced Apartment Residents Sustainable Procurement GRI As part of our sustainable procurement strategy, since 2015 Swire Properties has been implementing 301 environmental procurement guidelines in accordance with the ISO 14001 Environmental Management HKEX System. This system tracks our consumption of office supplies, building services equipment and building Aspect A2 KPI B5.4 materials that meet specific environmental criteria – such as whether the products have been certified or accredited by reputable, independent third parties. We use this data to evaluate our sustainable procurement performance and identify further opportunities to source more sustainable products. Beginning in 2020, we expanded our procurement of green products and services to include sustainability-related products and services, including expenditures on promoting safety, health and wellbeing in our properties and new developments. In addition, we also track our consumption of specific construction materials used in projects under development, such as timber, concrete and reinforcement bar. This allows us to benchmark our consumption of these materials and their environmental impact during the construction of new developments. We have been a member of the Hong Kong Green Purchasing Charter of the Green Council since 2013 and a member of their Sustainable Procurement Charter since 2018. We were the first real estate developer in Hong Kong to introduce low-carbon specifications for new developments, detailing such specifications for concrete, reinforcement bar and structural steel. These specifications have now been adopted into the main contract for a new development in Hong Kong. Cityplaza and Citygate Outlets were recognised with Excellent Green Product Advocator Awards at the Hong Kong Green Shop Alliance Awards 2022. These awards were given to both malls for contributing to a greener retail environment through the adoption of green products. Since 2021, we have worked with Tsinghua University to explore the availability and use of low-carbon building materials in the Chinese Mainland. To facilitate the low-carbon transformation of our supply chain, we also regularly share our considerable experience with contractors and building material suppliers in the real estate and construction industries through publications, presentations at conferences and other channels. The aims are to collaborate with our supply chain partners to innovate low-carbon best practices, and to catalyse the greater general availability of low-carbon building materials. The relevant SDGs are: SDG 12 Ensuring sustainable consumption and production patterns. SDG 13 Taking urgent action to combat climate change and its impacts. SUSTAINABLE DEVELOPMENT REPORT 2022 131
MENU PLACES PEOPLE PAPARRTTNNEERRSS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Partners 2022 Progress Suppliers Tenants Customers Residential Owners, Occupiers and Serviced Apartment Residents Sustainable Procurement for Hong Kong and the Chinese Mainland in 2022 HKD1,477 million 17% Total value of total procurement spend Green Procurement at Two Taikoo Place and Six Pacific Place Two Taikoo Place and Six Pacific Place have established a “whole lifecycle carbon” management approach which addresses both embodied carbon and operational carbon. Part of this vision involved the use of green procurement during the construction stage of the project. The green building materials procured include: Two Taikoo Place • Nearly 100% of concrete used is Platinum-certified under the Construction Industry Council (“CIC”) Green Product Certification. • Structural steel and rebar have high recycled content and are manufactured by the electric arc furnace (“EAF”) process. • All gypsum blocks used are Platinum-certified under the CIC Green Product Certification. • Forest Stewardship Council (“FSC”) or Programme for the Endorsement of Forest Certification (“PEFC”) certified timber used in temporary works. • Platinum-grade chillers certified under CIC Green Product Certification. • Low-volatile organic compound (“VOC”) and chlorofluorocarbon (“CFC”)-free paints, coatings, adhesives, sealants, flooring, insulation and furniture were purchased during the interior fit-out stage. Six Pacific Place • FSC and PEFC certified timber adopted for both temporary and interior works. • As at 31 December 2022, procured more than 23,000 tonnes of concrete which are Platinum-certified under the CIC Green Product Certification. • Procured rebar which are Platinum-certified under the CIC Green Product Certification. • All fan coil unit procured with CIC Green Product Certification. SUSTAINABLE DEVELOPMENT REPORT 2022 132
MENU PLACES PEOPLE PAPARRTTNNEERRSS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Partners 2022 Progress Suppliers Tenants Customers Residential Owners, Occupiers and Serviced Apartment Residents A Sustainable Timber Deck at Three Pacific Place After being in use for 16 years, the wooden deck and stone benches in the Star Street Plaza and Queen’s Road East Plaza in front of Three Pacific Place needed a revamp. Instead of demolishing them and building new ones using fresh materials, with the old materials sent to landfill, Swire Properties prioritised recycling as many existing elements as possible. The deck’s timbers were recycled and reconstituted into a more durable wood-plastic composite (“WPC”) deck, with the entire process performed by a local vendor. Meanwhile, sandstone panels from the external façade of the Pacific Place Mall were replaced after over 10 years of service. These were transformed into reconstituted stone benches and tables with all suppliers being local companies. The project is an excellent example of closed-loop recycling and is a ground-breaking project for WPC usage in Hong Kong, since all the recycling, reconstitution and fabrication processes took place locally. We seek to incorporate sustainability into every facet of our business and establish long-term cooperative relationships with green supply chain partners, together transitioning to a low-carbon economy. For more details, please refer to the project mini-site here. SUSTAINABLE DEVELOPMENT REPORT 2022 133
MENU PLACES PEOPLE PAPARRTTNNEERRSS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Partners 2022 Progress Suppliers Tenants Customers Residential Owners, Occupiers and Serviced Apartment Residents Further Expansion of our Sustainable Sourcing Programme We are committed to expanding our sourcing of sustainable materials across all areas of our business. In 2022, we continued to make significant achievements in this regard, including: Portfolio Management Offices and Facilities: • Air handling units, paints and coatings, panel board and water pump with CIC Green Product Certification • Toilet paper and printing paper certified by the Forest Stewardship Council (“FSC”) • Office printing paper with 100% recycled content in our Hong Kong internal offices • Biodegradable tea bags with certified organic tea Hotel Operations: • Sustainable seafood that meets guidelines set out by the WWF Seafood Guide or the Aquaculture Stewardship Council • Plant-based meat alternatives on menus, helping to lower carbon emissions and reduce the ecological footprint of our operations • Vegan, organic and biodynamic wines added to menus • Coffee beans processed with solar power and packaged in biodegradable materials • Bamboo material bathroom amenities • Simplified packaging for room amenities such as removing paper boxes • Toilet paper rolls replaced with 90-100% recycled fibre certified by FSC • All office printing papers certified by FSC SUSTAINABLE DEVELOPMENT REPORT 2022 134
MENU PLACES PEOPLE PAPARRTTNNEERRSS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Partners 2022 Progress Suppliers Tenants Customers Residential Owners, Occupiers and Serviced Apartment Residents Supplier Health and Safety and Smart Construction GRI Working closely with all our partners to foster a strong health and safety culture is an integral part of Swire 403 Properties’ commitment to Zero Harm. Beyond day-to-day operations and the management of existing HKEX properties, this culture also applies to our projects under development and all related construction sites. Aspect B6 In 2022, we continued to enhance the collection and public reporting of health and safety-related metrics and incident reports from our contractors which was introduced last year. This new approach allows us to track performance and enables us to work with our partners to develop strategies that improve on- site health and safety performance, ensuring that all our construction sites continue to be safe places to work. Our ambitious internal construction accident rate target is used to guide our efforts in this area. Meanwhile, we continued to successfully adopt the use of innovative smart technology to eliminate safety hazards and improve overall safety during the construction stage at several construction sites in Hong Kong and the Chinese Mainland this year. This took various forms, ranging from using robotic technology to replace humans on more dangerous tasks, to issuing workers with smart devices to further enhance their safety on-site. Number of fatalities of contractor workers 0 A contractor fatality is defined as a loss of life of a contractor or subcontractor employee as the result of an incident occurring when the contractor or subcontractor employees are conducting work for our Company. Lost Time Injury Rate of contractor workers at Hong Kong development projects 0.06 The Lost Time Injury Rate (“LTIR”) represents the number of injuries per 100 contractor workers per year. It is calculated as “total number of injuries multiplied by 200,000 and then divided by total hours worked”. The factor of 200,000 is the annual hours worked by 100 contractor workers, based on 40 hours per week for 50 weeks a year. Accident rate of contractor workers at Hong Kong development projects 0.90 The accident rate represents the number of reportable accidents per 1,000 contractor workers. It is calculated as “total number of reportable accidents multiplied by 1,000 and then divided by average daily number of contractor workers on-site”. SUSTAINABLE DEVELOPMENT REPORT 2022 135
MENU PLACES PEOPLE PAPARRTTNNEERRSS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Partners 2022 Progress Suppliers Tenants Customers Residential Owners, Occupiers and Serviced Apartment Residents Swire Properties Invests in Next-Level Innovative Safety Initiatives This year, Swire Properties increased our investment in cutting-edge technologies to increase construction site safety and reduce risks to workers. Working at height and inside the confined space of lift shafts are among the high-risk activities on any construction site. In 2022, Swire Properties adopted three leading-edge safety innovations to significantly reduce these risks during the construction of EIGHT STAR STREET, Two Taikoo Place and Six Pacific Place, in addition to employing safety monitoring and a safety management systems. The first innovation was the application of the scaffold-less lift installation method (“SLIM”) for the installation of passenger lifts at Two Taikoo Place. Traditional methods involves the erection of scaffolding within the lift shafts which serves as the working platform for the workers to install the various lift components. The scaffold-less lift installation method, on the other hand, is a much safer approach which eliminates the risks associated with workers having to physically climb up and down the scaffold. Workers are instead stationed on a motorised work platform which can be moved up and down the lift shaft. Six Pacific Place also significantly improved construction safety with the deployment of the automated Robotic Installation System for Elevators (R.I.S.E.) – the first use of this system in Hong Kong. Developed by a lift manufacturer, this robotic system conducts repetitive high-risk work such as drilling holes and setting anchor bolts within lift shafts automatically. This minimises the number of people inside the lift shafts, further reducing the possibility of accidents or injuries when compared to traditional installation methods. In addition, during the final phases of construction at Two Taikoo Place, an automated robotic system was used to perform a potentially dangerous task: the field water tests of the curtain wall system. These tests, undertaken at height, ensure that windows and other glass installations are waterproof. Using a robot for these tests eliminates the need for people to work at height, reduces human error and improves safety. We also used smart safety helmets for the workers, equipped with headlights and temperature and heartbeat sensors. The helmets are connected to an IoT network and sends out an alert when abnormalities are detected. This enhances communication and emergency management and further protects workers. Smart watches, AI-based analytical CCTV, IoT sensors and a full-coverage 5G mobile network at Six Pacific place also provided further technological safety aids. SUSTAINABLE DEVELOPMENT REPORT 2022 136
MENU PLACES PEOPLE PAPARRTTNNEERRSS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Partners 2022 Progress Suppliers Tenants Customers Residential Owners, Occupiers and Serviced Apartment Residents Smart Safety at our Chinese Mainland Renovation Sites Beginning in June 2022, an AI smart site safety monitoring system was set up at the renovation project site at Sino-Ocean Taikoo Li Chengdu to monitor the workers’ safety-related behaviour including smoking and the non-wearing of safety helmets. The system is equipped with a local speaker that warns workers and automatically sends alerts to the management team. In addition to enhancing safety management and preventing accidents, the system also allows construction site management tasks to be conducted remotely. This system has since been rolled out at construction sites at our Taikoo Li Sanlitun and Taikoo Hui Guangzhou properties. It can be configured to detect any pre-defined safety-related issues and provide real-time alarms – thus providing site-specific ways to improve the efficiency of safety supervision, reduce unsafe behaviour and visibly demonstrate effective management and the high standard of Swire Properties’ contractor safety requirements. SUSTAINABLE DEVELOPMENT REPORT 2022 137
MENU PLACES PEOPLE PAPARRTTNNEERRSS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Partners 2022 Progress Suppliers Tenants Customers Residential Owners, Occupiers and Serviced Apartment Residents Six Pacific Place Wins Multiple Site Safety Awards Six Pacific Place won several safety awards at the 28th Considerate Contractors Site Award Scheme, organised by the government’s Development Bureau and the Construction Industry Council. At the awards, Six Pacific Place was showcased as an example of good site safety practices and safety innovations, which included: • CONTRACTOR, a smart construction management platform which integrates different hardware and software applications, mentioned earlier in this section. • CCTV cameras with AI video analytics to detect unsafe behaviour or dangerous situations such as not wearing personal protective equipment (“PPE”) properly, entering a potentially dangerous area, and fall, smoke and fire detection. • Smart helmets that monitor health-related parameters such as body temperature and heart rate for workers in high-risk areas such as lift shafts. • Indoor environment quality sensors that continuously monitor site environmental metrics such as PM2.5, temperature and humidity. Alerts are sent to the site management team if abnormal conditions are detected. • The use of building information modelling (“BIM”) to review high-risk site activities, mentioned earlier in this section. • VR training provided to workers to ensure they fully understand safe working procedures. The awards won were: • Safety and Environmental Excellence for New Works Contracts – Gold • Considerate Contractors Site Awards for New Works Contracts (Group B) – Gold • Outstanding Environmental Management and Performance Awards – Silver SUSTAINABLE DEVELOPMENT REPORT 2022 138
MENU PLACES PEOPLE PAPARRTTNNEERRSS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Partners 2022 Progress Suppliers Tenants Customers Residential Owners, Occupiers and Serviced Apartment Residents Tenants HKEX Swire Properties works closely with our commercial tenants to help them integrate sustainability practices Aspect A3 KPI A3.1 into their operations throughout the lifecycle of their tenancies. Our SD 2030 Tenants subgroup – made up of representatives from our portfolio management teams and the technical services and sustainable development department – meets regularly to develop and enhance our tenant engagement efforts on sustainability. Sustainability is a regular agenda item incorporated into internal leasing and management meetings. Since 2015, we have worked with a number of our office tenants at Taikoo Hui Guangzhou to implement a variety of sustainability initiatives under our Green Pledge Programme. Based on the same goals as that programme, in 2021 we launched a pilot of our Green Performance Pledge (“GPP”), a performance- based agreement that acts as a blueprint for our landlord-tenant partnerships, providing a roadmap to show our tenants how they can contribute to a more sustainable world. The pilot attracted significant interest and numerous requests for both new and existing tenants. Our 2025 KPI is to have 50%12 of our office tenants sign this pledge. The GPP was formally rolled out in July 2022 in our Hong Kong properties, with a pilot programme launched in our Chinese Mainland properties December this year. We also continued to train our general managers and colleagues from management offices at our Hong Kong and Chinese Mainland portfolios to help ensure that all teams are engaged in the Company’s SD goals and offer our value-adding SD programmes to our tenants. The one-stop resource hub on the Company’s intranet continued to support our efforts in this area through 2022, allowing colleagues to access useful tools, courses and articles that support their sustainability-related conversations with tenants. Tenant Surveys Focus on Future Needs In 2022, Taikoo Place conducted the final part of our three-phase customer mapping plan. Phase One was a tenant survey; Phase Two focused on understanding our customers’ physical usage across the portfolio and the unique needs of different customer archetypes; and Phase Three researched ways to create an open feedback loop with tenants to keep us continuously informed about changing tenant needs and preferences, allowing us to be more agile with decision-making and consequently enhance our offerings. 12 Measured by occupied lettable floor area (“LFA”) of office portfolios at 100% basis comprising of Taikoo Place and Pacific Place in Hong Kong and Taikoo Hui Guangzhou. SUSTAINABLE DEVELOPMENT REPORT 2022 139
MENU PLACES PEOPLE PAPARRTTNNEERRSS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Partners 2022 Progress Suppliers Tenants Customers Residential Owners, Occupiers and Serviced Apartment Residents Tenant Engagement Environment The Green Performance Pledge Builds Momentum Officially launched in July 2022 in Hong Kong, the Green Performance Pledge (“GPP”) is a performance-based landlord-tenant partnership. Building on the basic premise of a green lease, the GPP covers the entire tenancy cycle in two core areas, fit-out and operation, focusing on creating a significant impact in terms of energy, water and waste reduction. This performance- based programme gives users access to an array of “green tools” and enhances tenant-landlord collaboration. From the launch of the GPP pilot in August 2021 until 31 December 2022, 52 office tenants – representing 37.9% of occupied lettable floor area from the Company’s Hong Kong office portfolio (over 2.5 million sq ft) – signed up. Participants are from Taikoo Place, Pacific Place and One Citygate, and span a wide range of industries including banking and finance, legal, information technology and consumer brands. The GPP pilot also launched in our Chinese Mainland portfolio in December 2022. Swire Properties aims to engage 50%1³ of office tenants in Hong Kong and the Chinese Mainland in the GPP by 2025. For new tenants fitting out their premises, or for existing tenants planning a renovation, the GPP includes a set of “SD Fit-out Technical Guidelines”. Featuring user-friendly templates, the guidelines cover office design tips, as well as a validation and recognition system to improve energy and water efficiency, reduce waste and enhance employee wellness. Under the operations portion, tenants can make use of various tools and methods of support available to guide them while they improve the sustainability of their operations. Highlights include performance benchmarking and action planning, data sharing, tailored SD offerings including free energy audits and smart water meters, access to pioneering green technologies such as Hong Kong’s first smart waste reduction monitoring system, networking opportunities, and recognition for exemplary environmental performance. By encouraging tenants to elevate their SD performance, the GPP is also helping the Company meet its Scope 3 emissions reduction target of 28% per sqm for tenants by 2030 (against a 2018 baseline) under the science-based targets. 1³ Measured by occupied lettable floor area (“LFA”) of office portfolios at 100% basis comprising of Taikoo Place and Pacific Place in Hong Kong and Taikoo Hui Guangzhou. SUSTAINABLE DEVELOPMENT REPORT 2022 140
MENU PLACES PEOPLE PAPARRTTNNEERRSS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Partners 2022 Progress Suppliers Tenants Customers Residential Owners, Occupiers and Serviced Apartment Residents The GPP Awards Ceremony 2022 In September 2022, the Company held the GPP Pilot Awards Ceremony, a celebration for our ground-breaking GPP pilot tenants. We shared GPP pilot results, presented awards and held an experience-sharing session about best practices with our pilot tenants. More than 30 guests from 10 participating tenant companies took part in the ceremony. Of the 13 pilot tenants, eight amassed “green points” in the operations portion of the GPP for sharing SD data and reaching specified performance goals. They were recognised with Platinum, Gold, Silver or Member awards. Five tenants also participated in the fit-out and renovation portion of the GPP, collecting “seed points” for adopting sustainability and wellness features. These tenants were recognised with “Three Seed”, “Two Seed” or “One Seed” ratings. GPP tenant case studies Fit-out One of our tenants followed our “SD Fit-out Technical Guidelines” and achieved outstanding results for their office: • 52% of existing office furniture was reused • 43% improvement in pantry faucet water efficiency • Five types of recyclables were collected, including glass bottles and food waste • An overall reduction in electricity use intensity of 21% compared to the tenant’s previous premises Operations As part of the GPP, one tenant participated in Swire Properties Smart Metering Pilot Programme, monitoring energy use by time and by zone in their office premises. They discovered that almost half of their total electricity was consumed outside office hours. The tenant removed underused equipment, which led to a 9.3% reduction in electricity use in two communal areas between October 2021 and June 2022, and began exploring more efficient management of lighting and server equipment to further improve energy savings. This tenant also took part in Swire Properties’ 2021 Smart Waste Reduction Challenge, reducing total waste per employee by nearly 19% between July 2021 and January 2022. Another tenant joined our free energy audit programme, aiming to improve energy performance in their offices, with the main focus being lighting, office appliances and heating, ventilation and air conditioning (“HVAC”) systems. The audit identified energy management opportunities of over 27,000 kWh that could be achieved through lighting retrofits, the use of daylight sensors and better overall equipment management. SUSTAINABLE DEVELOPMENT REPORT 2022 141
MENU PLACES PEOPLE PAPARRTTNNEERRSS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Partners 2022 Progress Suppliers Tenants Customers Residential Owners, Occupiers and Serviced Apartment Residents The Green Kitchen Initiative 2.0 Launched in 2017, Swire Properties’ Green Kitchen Initiative is a platform that allows portfolio management teams and tenants to have sustainability conversations before fit-out and renovation projects commence, allowing both sides to collaborate on reducing energy and water usage and improving air quality and waste management – thus enhancing the sustainability performance of food and beverage outlets across our portfolios. Given the Green Kitchen Initiatives’ durable success and popularity, in 2022, we upgraded the scheme, rolling out the Green Kitchen Initiative 2.0. This includes several prerequisites for receiving the Green Kitchen Award, such as incorporating LED lights, flow controllers and food waste recycling. As of the end of 2022, 76 tenants across our Hong Kong and Chinese Mainland portfolios have received Green Kitchen Awards, with 24 being new to the programme in 2022. Six tenants received the Gold Three Leaf Award during the year - a special mention for the best performing tenants in the scheme. Examples of initiatives introduced by these winning tenants include: • Putting in place demand-controlled or variable-speed exhaust systems to reduce kitchen exhaust fan energy use and associated cooling and heating costs. • Installing dishwashers, steamers and refrigerating appliances with a heat recovery function. • Selecting highly energy-efficient cooking equipment. • Setting up food waste recycling and recycling facilities for items like glass bottles, beverage cartons, coffee grounds and polyfoam boxes. • Adopting exhaust systems with high purification efficiency. • Introducing smart systems to streamline production processes to prevent or even eliminate unnecessary waste. An analysis of the key impacts of the Green Kitchen Initiative at our EAST Hong Kong hotel’s FEAST restaurant between the second halves of 2019 (before renovation) and 2021 reveals a strong positive impact, including: • 6% reduction in electricity usage (excluding air conditioning) • 31% reduction in town gas usage • 19% reduction in water consumption SUSTAINABLE DEVELOPMENT REPORT 2022 142
MENU PLACES PEOPLE PAPARRTTNNEERRSS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Partners 2022 Progress Suppliers Tenants Customers Residential Owners, Occupiers and Serviced Apartment Residents The Loop and Urban Farm Programmes Launched in 2017, The Loop is our SD exhibition centre in Devon House at Taikoo Place. The Loop features a recycling centre, food waste composter, “eco-art” installation and edible garden, among other exhibitions. The 4,000 sq ft space encourages tenants and the wider community to “close the loop” by incorporating sustainable practices into their business operations and daily lives. In July, INDIGO in Beijing also unveiled The Loop – a multipurpose space to engage employees, tenants and business partners on SD initiatives. There has also been a renewed focus on urban farming during the COVID-19 pandemic. In 2021, we extended The Loop’s urban farming and community engagement concept to other properties across Hong Kong in partnership with Rooftop Republic, a social enterprise focused on urban farming. This year, One Pacific Place became the fifth space under our “The Loop” concept, providing over 1,600 sq ft of urban farm area. In 2022, our five urban farms in Hong Kong Produced Harvested 36 varieties ~500kg of crops of crops Donated Engaged ~275 kg >1,350 to Feeding Hong Kong participants The Loop at Citygate Launched in June 2021, The Loop at Citygate has created the opportunity for all 19 One Citygate office tenants to experience farming in an urban context. During the four farming seasons in 2022, office tenants cultivated a dozen types of herbs and vegetables, enjoying their harvest when the e crops were ready. This urban farm mploys strict organic farming practices without using any industrial or conventional chemical fertilisers or pesticides. The Loop at Citygate has rejuvenated the rooftop area, become a relaxing place where the participants can get close to nature, and supported local arts and culture through the commission of a farm-themed mural on the rooftop. Overall, the farm is another example of Swire Properties’ community-building efforts and our work to improve the wellbeing of our employees and our office tenants. SUSTAINABLE DEVELOPMENT REPORT 2022 143
MENU PLACES PEOPLE PAPARRTTNNEERRSS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Partners 2022 Progress Suppliers Tenants Customers Residential Owners, Occupiers and Serviced Apartment Residents The Loop at One Island East, Taikoo Place The One Island East rooftop farm is located 300 metres above ground. Originally a space dedicated to building maintenance, since 2021, over 300 sq ft of the rooftop has been turned into an urban farm with 50 planters for seasonal greens and herbs. A food digester machine and composting tumblers have also been set up to convert office tenants’ food waste into compost to fertilise the farm. The Loop at One Pacific Place In November 2022, Swire Properties launched The Loop at One Pacific Place in partnership with the building’s anchor tenant. This newest Loop will grow 28 types of crops throughout the year and will also repurpose food waste collected from the tenant’s offices into compost for the farm, demonstrating the power of cross- industry efforts and landlord-tenant collaboration in driving sustainability in the workplace. The Loop at South Island Place Launched in 2021, this sky farm runs a regular Farm Club which engages 66 office workers in urban farming programmes and events, and harvesting almost 26kg of produce by the end of September 2022, 21kg of which was donated to a local food charity. SUSTAINABLE DEVELOPMENT REPORT 2022 144
MENU PLACES PEOPLE PAPARRTTNNEERRSS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Partners 2022 Progress Suppliers Tenants Customers Residential Owners, Occupiers and Serviced Apartment Residents Energy Audits In 2022, we continued our long-running initiative of conducting free energy audits for our tenants to help them identify energy-saving opportunities. Free energy audits given to commercial tenants (since 2008) Hong Kong The Chinese Mainland Tenanted area 3.6 million 2.5 million sq ft sq ft Potential annual energy 3.3 million 6.6 million savings identified kWh kWh Hong Kong Green Shop Alliance Swire Properties was the first real estate developer to support the Hong Kong Green Shop Alliance (“HKGSA”), established by the Construction Industry Council and the Hong Kong Green Building Council in 2016 to promote sustainability initiatives in the retail industry through landlord- tenant collaboration. This year, our leadership in this field was again recognised as we won several major accolades at the 2022 HKGSA Awards: Special Citation on Carbon Neutrality: • Given to Swire Properties for our 1.5°C-aligned science-based targets, our strong commitment to achieving net-zero before 2050 and our continued implementation of decarbonisation strategies covering Scopes 1, 2 and 3 at both corporate level and at our shopping malls. Best Green Practice in Malls category: • Citygate Outlets – Bronze Award, given for our innovative energy-saving solutions and facilities, and initiatives that help tenants save energy and reduce waste. Best Collaborative Effort of Malls and Shops category: • Cityplaza – Best Tenant Partner Award, given in recognition of our engagement initiatives and resource sharing that have helped tenants save energy and reduce waste and promote sustainable development to their sublet tenants. Excellent Green Product Advocator Award: • Citygate Outlets • Cityplaza SUSTAINABLE DEVELOPMENT REPORT 2022 145
MENU PLACES PEOPLE PAPARRTTNNEERRSS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Partners 2022 Progress Suppliers Tenants Customers Residential Owners, Occupiers and Serviced Apartment Residents Digitalisation As part of our commitment to innovation and experimentation, Swire Properties’ ongoing digital transformation aims to improve digital connectivity, incorporate cutting-edge technologies, create efficiencies and cost savings, and reduce waste across our operations. As a measure of the success of this transformation, this year we received the highest level of certification from two global digital connectivity benchmarks: WiredScore, which assesses the ability of a building to meet the needs of the modern office tenant; and SmartScore, which certifies best- in-class smart buildings that deliver a fully integrated user experience through a modern, digital platform to improve efficiency and are fully future-proofed to meet the highest standards of sustainability. Taikoo Place and Pacific Place are now the first WiredScore-certified portfolios in Hong Kong, with 15 commercial buildings certified, while Two Taikoo Place and Six Pacific Place are the first buildings in Hong Kong to be both WiredScore and SmartScore Platinum certified – this is an impressive achievement, as only 0.6% of buildings assessed by these schemes have globally obtained a Platinum rating. Tenant Portal Our tenant portal is a website through which our tenants can make facility management requests, view e-debit notes and circulars, and get in touch with the administration and other important contacts. After making a request, work orders are automatically generated. This digitised process reduces paper use and saves data input time. In 2021, new features were added to the portal, including the piloting of a facilities maintenance feature at Taikoo Place which offers a digital alternative to submitting and tracking facilities maintenance requests. All requests made through the system are logged and can be reviewed at any time. The tenant portal is now accessible to all office tenants and retail tenants. In 2022, we began to develop an upgraded version of the tenant portal which incorporate new features to capture tenant's energy and waste data and track performance against the GPP. Features related to the GPP will be progressively enhanced to support data sharing, benchmarking and gamification. Representatives from our information technology department, technical services and sustainable development department and portfolio management teams meet regularly to ensure that the portal meets evolving tenant engagement and sustainability needs. SUSTAINABLE DEVELOPMENT REPORT 2022 146
MENU PLACES PEOPLE PAPARRTTNNEERRSS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Partners 2022 Progress Suppliers Tenants Customers Residential Owners, Occupiers and Serviced Apartment Residents Smart Resource Conservation through Technology 2022 saw an increase in the use of smart technology throughout our properties. We continued working with three tenants on the Smart Power Metering System pilot programme that is allowing landlords and tenants to continuously review energy consumption patterns, identify potential energy savings and drive behavioural change. To promote water efficiency and raise awareness about the importance of conserving water, we completed the installation of wireless water sub-meters for office tenants in Taikoo Place and Citygate, and began installation works in Pacific Place. In Taikoo Place, we also began to proactively help tenants review the efficiency of their water fittings and make simple retrofits to reduce their faucets’ flow rate. While waste measurement usually involves manual weighing and recording, we continue to embrace emerging technologies that can digitalise the waste data collection process. In 2021, with the support of the Swire Pacific SD Fund, we launched the Smart Waste Reduction Challenge, where smart scales are retrofitted underneath bins inside tenants’ premises to collect waste data. In 2022, the Challenge welcomed more tenants. In parallel, we also began a Smart Mobile Scale Pilot programme, in which cleaning contractors are provided with a designated cloud-connected scale with which they weigh and record tenants’ waste in the back-of-house area. We will continue to identify, evaluate and expand approaches that promote data sharing and help all parties cut down on energy, water and waste in the hopes of deepening collaboration with our tenants. SUSTAINABLE DEVELOPMENT REPORT 2022 147
MENU PLACES PEOPLE PAPARRTTNNEERRSS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Partners 2022 Progress Suppliers Tenants Customers Residential Owners, Occupiers and Serviced Apartment Residents Social and Wellness +UP! Better Living Pop-ups Taikoo Place held new versions of its popular “+UP! Better Living Pop-ups” events campaign at its multipurpose space ArtisTree in October and November 2022. The series of wellness-inspired programmes was curated to introduce the idea of a “work-life balance lifestyle” to people working in the Taikoo Place community by providing the support they need to relax and restore themselves both physically and mentally. These events are part of placemaking efforts that create unique beyond-the-office experiences by harnessing the power of workplace wellbeing. These events included: • A wellness pop-up at ArtisTree offering a range of self-care-focused lifestyle products including organic fashion items, haircare, candles, incense and herbal drinks. • A “Sounditation Journey” that combined visual arts, healing sounds and meditation conducted by a local renowned singing bowl artist that offered one-of-a-kind “sounditation” experience in an immersive multimedia setting. • A series of fitness classes including yoga, pilates and high-intensity full-body workout sessions designed to help people create personal fitness regimes to build muscle strength and release everyday stress. • Two Corporate Wellness Challenge events – a two-day inaugural Indoor Golf Tournament and the 8-Hour Charity Spin. Both events aimed to build community spirit and create positive, healthy workplaces and carry a charity cause to support mental health and well-being. Our Taikoo Place tenant partners gave a strong show of support to the events. Over HKD500,000 was raised, of which HKD350,000 was donated by Swire Properties. SUSTAINABLE DEVELOPMENT REPORT 2022 148
MENU PLACES PEOPLE PAPARRTTNNEERRSS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Partners 2022 Progress Suppliers Tenants Customers Residential Owners, Occupiers and Serviced Apartment Residents One Citygate Tenants Wellness X ESG Programme The One Citygate Tenant Wellness X ESG Programme workshops, launched in 2022, aimed to raise awareness of sustainable development and build a community for One Citygate employees and tenants. Four workshops were held during the year. In May, the “Rooftop Yoga for Office Workers” workshop was co-organised with several office tenants and our SD partner, which sponsored free yoga mats tailor-made from recycled plastic. Employees from four offices took part. In July, the “Craft Coffee Workshop” was held with participants from six offices who tasted various specialty coffees and learnt how to hand brew coffee, with the Q grader instructor (a certified coffee professional) and assistants coming from a non-profit organisation that trains underprivileged young people to become professional baristas. August marked an underwater clean-up diving event, in which 19 participants from six different offices took part in a “ghost net hunting dive” to clean up underwater trash in Sai Kung. Participants learnt about marine environmental protection and extracted a large ghost net – these are abandoned fishing nets that drift through the water, causing harm to marine biodiversity. In December, to celebrate Christmas and wrap up the year, we held a whisky tasting workshop for One Citygate tenants. Forty participants gathered at the Pavilion bar in the Silveri Hotel and enjoyed several types of whisky from around the world presented by a professional mixologist. After the workshop, our tenants enjoyed casual networking time with each other over snacks and drinks. SUSTAINABLE DEVELOPMENT REPORT 2022 149
MENU PLACES PEOPLE PAPARRTTNNEERRSS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Partners 2022 Progress Suppliers Tenants Customers Residential Owners, Occupiers and Serviced Apartment Residents Project After 6 Launched in 2014, PROJECT AFTER 6 is an engagement programme that strengthens connections between office workers by bringing art, music and entertainment into their work environments and tapping into their unexplored talents. The programme helps cultivate a pleasant, cohesive working environment and creates positive impacts for our tenants and their employees, leading to a more integrated community and greater business success. The 2022 version of PROJECT AFTER 6 saw Taikoo Place host five consecutive days of exclusive mini-music concerts at ArtisTree. This year’s programme aimed to have celebrities share their love and experience of on-stage performance with our tenant performers. Themed “Share the Light, Share the Stage”, we encouraged PROJECT AFTER 6 alumni from past years to act as mentors for this year’s new musicians. After online auditions were held for Taikoo Place tenants, 15 shortlisted musicians were selected to perform with 10 celebrity singers and groups. The concerts proved to be popular as usual, with all tickets selling out within five hours of the promotion being announced. Over 1,100 tenants from 71 companies attended, with social media reach extending to 2.2 million people. This year’s PROJECT AFTER 6 reinforced Taikoo Place’s placemaking commitment, further deepened our already-strong landlord-tenant relationships and encouraged work-life balance in the Taikoo Place office community. SUSTAINABLE DEVELOPMENT REPORT 2022 150
MENU PLACES PEOPLE PAPARRTTNNEERRSS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Partners 2022 Progress Suppliers Tenants Customers Residential Owners, Occupiers and Serviced Apartment Residents Customers Swire Properties seeks to continuously improve our services and offerings. To do this, we must understand our customers’ needs, and feedback is a vital part of this understanding. In 2022, our research programmes continued to provide us with invaluable data which will be analysed and used to further refine the customer experience and our market positioning. Privacy Policy GRI We are committed to protecting the privacy of our customers. Our Privacy Policy covers our operations 418 in Hong Kong and the Chinese Mainland. This policy on data management and protection provides HKEX guidance on the handling of personal data, including that of our customers, throughout the data lifecycle KPI B6.5 and will be updated from time to time to ensure compliance with the relevant laws and regulations. Under the Privacy Policy, our employees are required to comply with internal guidelines covering the collection, processing, transfer, retention and disposal of personal data. Retail Customers We obtain valuable feedback from customers visiting our major retail properties through annual customer surveys and our Mystery Shopper Programme (“MSP”). We conduct three types of marketing research: annual shopper behaviour and branding research; the MSP; and a luxury shopper programme in the Chinese Mainland. Annual Shopper Behaviour and Branding Research Our 2022 shopper behaviour and branding research programme was carried out in all nine malls in Swire Properties’ portfolio, beginning in Q3 of 2022. Carried out by a research agency, the research programme consists of qualitative and quantitative studies, designed to identify shopper profiles, gauge customer behaviour, determine the presence and predisposition of mall brands, and understand customer needs in each of the malls. Results from the studies will help us gauge the performance of our malls and provide actionable insights for management teams. In 2021, nearly 6,600 interviews and 2,500 online brand surveys were completed. The survey covered 100% of our major retail properties in Hong Kong and the Chinese Mainland and a number of their competitors. Over 97% of the response ratings were between “excellent” and “good”. Our new cycle of annual shopper behaviour and branding research programme is being carried out in all nine malls in Swire Properties’ portfolio beginning in Q3 of 2022. The results will be available in mid-2023 and will be used to facilitate the long-term strategic planning processes at our malls. SUSTAINABLE DEVELOPMENT REPORT 2022 151
MENU PLACES PEOPLE PAPARRTTNNEERRSS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Partners 2022 Progress Suppliers Tenants Customers Residential Owners, Occupiers and Serviced Apartment Residents Mystery Shopper Programme 2022 Our annual Mystery Shopper Programme (MSP) evaluates the performance of our customer service officers in our six Chinese Mainland malls by identifying their strengths and weaknesses of our CSOs and providing actionable recommendations for better customer service and experience. When compared to the first MSP, the latest programme shows an overall improvement of 23.5% was accomplished by all our malls, reflecting our continuous dedication to enhancing the customer experience. Chinese Mainland City-level Luxury Shopper Study 2022 Performed by a consulting firm, Swire Properties’ “Chinese Mainland City-level Luxury Shopper Study 2022” was carried out in the five cities in which we have operations, performing a deep dive into the thoughts and opinions of luxury. Designed to inform our future strategies, the study had three parts – a customer research section, a benchmarking section against industry standards, and a section on future opportunities. INDIGO’s Sustainable Development Studio at The Loop In August, INDIGO opened its Sustainable Development Studio (“SD Studio”) at The Loop, a multipurpose space where employees, tenants and business partners can host sustainability- related events such as meetings, workshops and mini-exhibitions. Located in the lobby area that connects the office building, shopping mall and parking lot, the SD Studio adopts a similar design to The Loop, with sustainability-related mosaics, modular furniture which can be easily stowed during multifunctional events, and fabrics made from recycled and repurposed materials from a previous exhibition. The SD Studio has three main functional walls – a history wall, which charts INDIGO’s sustainable development journey and green certifications; an educational material wall, showing how plastic, metal, glass and electronic waste products are recycled and upcycled; and a co-creative art wall to help inspire the public through inspirational green living-themed works. SUSTAINABLE DEVELOPMENT REPORT 2022 152
MENU PLACES PEOPLE PAPARRTTNNEERRSS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Partners 2022 Progress Suppliers Tenants Customers Residential Owners, Occupiers and Serviced Apartment Residents Digital Customer Experience TAIKOO+ Mobile App Launch – Unlock Cross-portfolio Synergy Launched in November 2021, the TAIKOO+ mobile app is a unified, “one-stop shop” platform designed to attract cross-mall registration and unlock cross-portfolio synergy. Covering three Hong Kong shopping destinations – Pacific Place, Cityplaza and Citygate Outlets – the app provides several member services through a single platform, with core services including loyalty programme enrolment, conversion of spending to points and rewards redemptions. The TAIKOO+ app has performed Impressively thus far, yielding: • A 352% growth in Cityplaza and Citygate Outlets shared membership. • An overall increase in shared members at all three malls of 273%. • A 56% engagement rate of Cityplaza loyalty members. • A handling rate of more than 65% of Cityplaza and Citygate Outlets receipt uploads by the app – helping capture member data for analysis and increasing the operational efficiency of customer service counters. The “Personally Yours” Digital Game Campaign Launch In the Chinese Mainland, Gen Z consumers are increasingly responding to personalised product marketing. To reach this large market segment, Swire Properties devised the “Personally Yours” digital campaign for our 50th anniversary. This new experiment in commercial real estate is a unique, proactive and integrated approach to customer engagement. SUSTAINABLE DEVELOPMENT REPORT 2022 153
MENU PLACES PEOPLE PAPARRTTNNEERRSS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Partners 2022 Progress Suppliers Tenants Customers Residential Owners, Occupiers and Serviced Apartment Residents “Personally Yours” brings to life new retail service concepts that connect people, goods and spaces. It facilitates private traffic marketing, enables brands to adopt targeted marketing and enhances the consumer experience through four key features: 1. “Creative ways to play” – The campaign invites customers into a digital world where they use a pioneering user-generated content (“UGC”) model to customise their own unique virtual avatars and obtain their own exclusive digital collectible for use in an engaging multiplayer game – a first for Swire Properties. 2. “Empowering brands to link virtual and real-world realities for targeted marketing” – brands can digitally showcase their products, creating online exposure which is then converted to foot traffic at physical stores. Through the game, online gameplay is connected to the in-store experience. 3. “Digital art augments the attractiveness of fashion” – the campaign includes digital art with physical products. In addition to making personalised images and virtual outfits, the campaign requested two artists to create 10 digital works of art inspired by our 50th anniversary theme. The participants were allowed to reuse these pieces to make their own digital creations. 4. “A whole new self image” – the campaign supports and encourages participants to use diverse and elaborate digital designs for their virtual avatars when adding fashion elements to their hair styles, facial features, expressions, and clothing. By connecting the virtual and physical worlds, “Personally Yours” was more than an isolated marketing event – it became a sustained engagement and outreach initiative, a symbol of Swire Properties Creative Transformation ethos. As of 12 September 2022, the campaign had generated nearly RMB15 million in advertising value, and the “Personally Yours” game acquired over 220k interactions. HK1 CRM We continued to rollout the customer relationship management (“CRM”) platform in 2022 at Swire Properties’ shopping malls in Hong Kong, which now covers Citygate, Cityplaza and Pacific Place. Designed to enhance shopping experience for customers and streamline processes for mall staff and management, the platform integrates customer information allowing for better management of customer loyalty programmes, including tiers, campaigns, rewards, redemptions and gifts. The platform is also speeding up rewards redemption and receipt verification time, reducing inventory error and providing advanced data analytics that allows for precision marketing. In 2023, the team plans to expand the platform to include contactless car-parking services, digitalised valet parking and other incremental features that will enhance the customer experience and create further efficiencies. SUSTAINABLE DEVELOPMENT REPORT 2022 154
MENU PLACES PEOPLE PAPARRTTNNEERRSS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Partners 2022 Progress Suppliers Tenants Customers Residential Owners, Occupiers and Serviced Apartment Residents Residential Owners, Occupiers and Serviced Apartment Residents Swire Properties continues to develop residential projects in Hong Kong and in other locations. While some of these projects, such as WHITESANDS and ALASSIO, have been developed for sale, others, such as our Pacific Place Apartments and EAST Residences, continue to be managed by the Company. In 2022, we continued on our newest residential development, the EIGHT STAR STREET project located in Wan Chai’s Starstreet Precinct. Enhancing Environmental Partnership with Residential Owners and Residents In late 2020, Swire Properties reactivated our Residential Sustainability Taskforce, which encompasses the 21 residential properties that we currently own or manage. The taskforce’s aim is to discuss and calibrate a unified approach towards SD issues for these properties. In 2022, the taskforce coordinated on topics such as cleaning contractor management, SD data collection, preparations for municipal solid waste charging, enrolment into new government and NGO programmes, and the exchange of best practices. Several projects were completed in 2022: • All 21 estates participated in a detailed mapping of their electricity meters, water meters and waste recycling channels and began reporting electricity usage, water consumption and waste generation data in the Company’s central SD data platform. • Nineteen estates signed up to the Hong Kong government’s GREEN COLLECT programme, a one-stop recyclables collection service for various low-value recyclables, including plastics, glass bottles, small electrical appliances, and others. • One estate participated in a Municipal Solid Waste Charging Trial Scheme between May and October 2022, where 560 residents from four residential towers were encouraged to dispose of waste using designated garbage bags provided by the government and utilising the estate’s recycling facilities. Ham Tin Villas – Connecting Residents with Nature The newly renovated Ham Tin Villas on Lantau Island prioritise sustainability and connections with nature. Each house features a private garden ranging in size from 3,700 sq ft to 5,700 sq ft, while each master bedroom has access to an outdoor rooftop terrace. The landscape design includes an aesthetically pleasing man-made creek which also absorbs runoff from heavy rain to prevent flooding. We also took pains to preserve the area’s natural heritage: a 100-year-old banyan tree and other trees and boulders were preserved and retained in their original positions, and all the plant species on the site are native to Hong Kong. SUSTAINABLE DEVELOPMENT REPORT 2022 155
Performance (Environment) Swire Properties aims to continue to design, construct and manage high-quality developments that contribute positively to the environment and to the communities in which we operate.
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 Swire Properties aims to continue to design, construct and manage high-quality developments that contribute positively to the environment and to the communities in which we operate. Swire Properties is committed to strengthening our environment-related policies and management approaches to environmental protection by expanding the focus of our initiatives beyond the direct impacts of our business. We seek to address environmental concerns that are crucial to the communities in which we operate, including climate change, energy management, resource management and circularity, and water conservation. We also provide thought leadership on environmental and other sustainability issues to stakeholders in our industry – locally, regionally and globally. Policies GRI Our policies clearly set out our environmental principles, approaches and commitments. 301-3, 305-7 HKEX Aspect A1, A2, A3, A4 Environmental Policy KPI A3.1 This policy sets out the principles underpinning our approach to managing and reducing the environmental impacts arising from our operations. Climate Change Policy Climate change poses significant risks to our business. This policy outlines our commitment to managing climate change risks across our operations, and developing mitigation, adaptation and resilience strategies to address these risks. Energy Policy This policy outlines our approach to energy management, which involves integrating energy efficiency considerations over the lifecycle of our developments by adopting appropriate technologies and influencing the behaviour of our tenants, employees and others with whom we work. Resource and Circularity Policy This policy guides our approaches to reducing waste, from the design and construction phases of our projects to the daily operation and management of our buildings. SUSTAINABLE DEVELOPMENT REPORT 2022 157
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 Water Policy We conducted a review of our Water Policy in 2022 to ensure alignment with regulations and to better reflect water-related issues that are material to Swire Properties. The policy has been updated to strengthen our commitments around the responsible use of water. This includes understanding the water risk at the locations of our developments, reducing water-consumption intensity through improved design, implementing efficient water management measures during operations, ensuring that water is discharged into the environment safely, and engaging our stakeholders to encourage the responsible consumption of water. Biodiversity Policy We conducted a review of our Biodiversity Policy in 2022 to ensure that the policy reflects biodiversity- related issues that are material to Swire Properties. During the review, no new material biodiversity issues were identified and as such, no updates to the policy were made. This policy sets out how we incorporate biodiversity considerations into our operations by minimising the adverse impacts of our operations on biodiversity and ecosystems, supporting appropriate biodiversity and conservation initiatives, promoting awareness of biodiversity and conservation issues, and other measures. Environmental and Energy Management Systems Environmental considerations are integrated into different areas of our business through environmental and energy management systems that conform to international standards such as the ISO 14001 Environmental Management System and the ISO 50001 Energy Management System. In 2022, approximately 80% of our assets14 in Hong Kong and the Chinese Mainland conformed to the ISO 14001 and ISO 50001 systems. We believe these systems create a robust framework for managing our environmental and energy performance. 14 By gross floor area (GFA). SUSTAINABLE DEVELOPMENT REPORT 2022 158
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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 Thought Leadership We strive to provide guidance and leadership for the real estate sector in Hong Kong, throughout Asia Pacific and on a global level by sharing our experience and expertise. We also promote the importance of and demonstrate our commitment to sustainability at numerous conferences and seminars in Hong Kong and beyond – sharing our vision in the hope of inspiring other corporations to achieve common sustainability goals. WorldGBC Global Webinar: Placemaking for a Net-Zero Future As part of the World Green Building Council’s “Net Zero Solutions Around the World” event, held during the week of World Environment Day in June 2022, Swire Properties co-hosted a half- hour session called “Placemaking for a Net-Zero Future”. The webinar explored various aspects of decarbonisation and perspectives on a net-zero future. Our Chief Executive, Tim Blackburn, shared how Swire Properties is working to achieve net-zero goals across our businesses, and explained how our efforts to decarbonise our buildings and operations have driven pioneering projects, the adoption of cutting-edge technology, business opportunities and the creation of vibrant local communities. Click here for a video of our Chief Executive discussing our progress towards net-zero. SUSTAINABLE DEVELOPMENT REPORT 2022 159
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 Sharing Our Knowledge through Public Engagement Swire Properties believes that by sharing our experience and practices, we can inspire other companies and organisations to join us on our sustainability journey. We believe that this sharing helps reinforce our commitment to sustainability and demonstrates our continuous efforts to transition to a net-zero economy. In 2022, we delivered presentations at various conferences and seminars including: The RIMS-WTW Asia Pacific Risk Conference Organised by the Risk Management Society The BEC EnviroSeries Conference 2022: Driving Business Ambition into Action for a Net- Zero Hong Kong Organised by the Business Environmental Council The Greater Bay Area Sustainable Built Environment Conference Organised by the Hong Kong Green Building Council The 2nd China Building Energy Conservation Industry's Promotion Conference on Carbon Peak and Carbon Neutralization − Zero-carbon Operation Public Buildings, Communities and Parks Organised by the Tsinghua University Research Centre for Building Energy Efficiency 15th Asian Financial Forum “Navigating the Next Normal towards a Sustainable Future”: “Dialogues for Tomorrow” – The Future of Property Organised by Hong Kong Trade Development Council ReThink HK 2022 Organised by Rethink Hong Kong RICS Hong Kong Annual Conference 2022 Organised by The Royal Institution of Chartered Surveyors (RICS) HKMA/BOC Life Sustainability Summit 2022 Organised by The Hong Kong Management Association SUSTAINABLE DEVELOPMENT REPORT 2022 160
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 2022 Progress Our Performance (Environment) Working Group, which comprises 29 members from different functions within the Company, has developed key performance indicators for seven environmental and resource management focus areas. This year, we continued to work towards our 2025 and 2030 KPIs, with our approved 1.5°C science-based targets guiding our efforts across the Company. Our 2022 progress is summarised in the table below. Progress Summary Table Climate Change Decarbonisation 2025 KPI Progress Updates in 2022 • Operational Carbon Emissions (Scope 1 • Reduction of Scope 1 and 2 absolute GHG and 2 SBT): Reduce absolute greenhouse emissions: 25%15 28% gas (“GHG”) emissions by 2030 KPI Progress Updates in 2022 • Value Chain GHG Emissions (Scope 3 • Reduction of carbon intensity from the SBT – Downstream Leased Assets): tenant-controlled portion of downstream Reduce carbon intensity from the tenant- leased assets: controlled portion of downstream leased 40% assets by 28% per square metre16 • Value Chain GHG Emissions (Scope 3 • Reduction of embodied carbon intensity SBT – Capital Goods): Reduce embodied from new major developments: carbon intensity from new development 17% projects by 25% per square metre (construction floor area)17 15 Compared to the 2019 baseline. 16 Compared to the 2018 baseline. 17 Compared to the 2016-2018 baseline. SUSTAINABLE DEVELOPMENT REPORT 2022 161
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 Energy Reduction 2025 KPI Progress Updates in 2022 • Reduction of electricity use intensity • Reduction of electricity use intensity (kWh/m2)18: (kWh/m2): Hong Kong portfolio19 Hong Kong portfolio 20%20 15% Chinese Mainland portfolio21 Chinese Mainland portfolio 13%20 9% • Continued to implement energy-saving measures throughout our Hong Kong and Chinese Mainland portfolios and hotels. Renewable Energy 2025 KPI Progress Updates in 2022 • Generate 4-6% of landlord’s building • Approximately 6% of landlord’s building energy from on-site renewable or clean energy will be supplied by renewable energy sources for selected newly sources at Two Taikoo Place. completed office projects • 100% of electricity at Sino-Ocean Taikoo Li Chengdu and The Temple House in Chengdu, as well as Taikoo Hui Guangzhou is procured from renewable sources. 18 The 2025 KPIs under Energy have been updated per our approved 1.5°C-aligned SBT. Energy Use Intensity has been renamed to “Electricity Use Intensity” in 2022 to reflect the use of electricity for the provision of shared services for and in the common parts of our buildings. The actual scope of this KPI remains unchanged. 19 Our Hong Kong portfolio refers to our office and retail portfolio and hotels in Hong Kong. 20 Compared to the 2019 baseline. 21 Our Chinese Mainland portfolio refers to our office and retail portfolio and hotels in the Chinese Mainland. SUSTAINABLE DEVELOPMENT REPORT 2022 162
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 Resource and Circularity Resource Recycling and Waste Diversion 2025 KPI Progress Updates in 2022 Waste diversion rates from landfills: Waste diversion rates from landfills: • Hong Kong portfolio (including hotels) • Hong Kong portfolio (including hotels) 30% of commercial waste 25.4% of commercial waste • Hong Kong (projects under development) • Hong Kong (projects under development) 85% of demolition waste 94.6% of demolition waste for 6 70% of construction waste Deep Water Bay Road 81.7% of construction waste for EIGHT STAR STREET 89.3% of construction waste for Two Taikoo Place • Chinese Mainland (projects under • Chinese Mainland (projects under development) development) 50% of total waste22 84.5% of construction waste for Taikoo Li Qiantan 60.3% of construction waste for Taikoo Li Sanlitun West extension Waste recycling rate: Waste recycling rate: • Chinese Mainland portfolio (including • Chinese Mainland portfolio (including hotels) hotels) 40% of commercial waste 44.8% of commercial waste 22 The waste diversion rate from landfill for Chinese Mainland projects under development is calculated in accordance with LEED requirements. Flexibility will be allowed for projects not wholly-owned by the Company, and for projects with major contractor(s) already on board. SUSTAINABLE DEVELOPMENT REPORT 2022 163
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 Water Water Reduction 2025 KPI Progress Updates in 2022 • Reduction of water intensity: • Reduction of water intensity: 3 2 3 2 Hong Kong portfolio2³ (m /m ) Hong Kong portfolio (m /m ) 10% 9.2% 3 2 3 2 Chinese Mainland portfolio2³ (m /m ) Chinese Mainland portfolio (m /m ) 20% 25.9% 3 3/guest night) Hotels24 (m /guest night) Hotels (m 8% 15.1% Biodiversity Integration 2025 KPI Progress Updates in 2022 • Conduct biodiversity surveys in 50% • The findings and recommendations from of new development projects the completed urban biodiversity study • Implement guidelines to integrate of our Taikoo Place redevelopment have biodiversity considerations into new been discussed and shared with various developments departments to enhance the biodiversity of both existing projects and projects under development. The findings from the study will be used to establish guidelines to integrate biodiversity considerations in future new projects. 2³ Our Hong Kong portfolio refers to our office and retail portfolios in Hong Kong, excluding hotels; our Chinese Mainland portfolio refers to our office and retail portfolios in the Chinese Mainland, excluding hotels. For our Hong Kong portfolio and Chinese Mainland portfolio, the water intensity reduction targets are compared to a 2016 BAU baseline year. 24 For Hotels, the water intensity reduction targets set is compared to a 2018/2019 baseline year. SUSTAINABLE DEVELOPMENT REPORT 2022 164
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 Occupant Wellbeing Indoor Air Quality (“IAQ”) Management 2025 KPI Progress Updates in 2022 90% of buildings • For common areas, approximately • For common areas, 83% of buildings in our Hong Kong achieve IAQ Excellent Class in our Hong Kong portfolio25 or fulfil the local IAQ portfolio achieved IAQ Excellent Class. standard in our Chinese Mainland • Approximately 80% of buildings in our portfolio26 Chinese Mainland portfolio fulfilled the local IAQ standard. 25 Our Hong Kong portfolio refers to our office and retail portfolio and hotels in Hong Kong. 26 Our Chinese Mainland portfolio refers to our office and retail portfolio and hotels in the Chinese Mainland. SUSTAINABLE DEVELOPMENT REPORT 2022 165
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 Building/Asset Investments Environmental Building Assessment Schemes27 2025 KPI Progress Updates in 2022 • 100% of wholly-owned new • 100% of projects under development development projects28 to achieve achieved the highest ratings. the highest environmental building • 93% of wholly-owned existing assessment scheme rating developments achieved the highest • 90% of all wholly-owned existing ratings. developments28 to achieve the highest Hong Kong portfolio environmental building assessment • Lincoln House achieved Final Platinum scheme rating rating under BEAM Plus Existing Building Version 2.0. • Pacific Place achieved Final Platinum rating under BEAM Plus Existing Building Version 2.0. Chinese Mainland portfolio • Taikoo Hui Guangzhou achieved Platinum under LEED v4 for Building Operations and Maintenance: Existing Buildings and Platinum under WELL Version 2 Core. • Taikoo Li Sanlitun achieved Platinum under LEED v4.1 for Building Operations and Maintenance: Existing Buildings. 27 BEAM Plus/LEED/China Green Building Label/WELL Certification; the most suitable environmental building assessment scheme is selected based on the project location. 28 Exclude trading properties. SUSTAINABLE DEVELOPMENT REPORT 2022 166
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 Profile of Environmental Impacts HKEX KPI A3.1 Carbon Emissions GRI In 2022, our total carbon emissions (Scope 1 and 2) decreased by 6% compared to 2021. The carbon 305 intensity in our Hong Kong portfolio, Chinese Mainland portfolio and U.S.A. portfolio decreased compared HKEX to 2021. KPI A1.2, A1.5 The Company’s largest source of Scope 2 emissions arising from purchased electricity. This category of emissions decreased by 6% compared to 2021. This is attributed to various initiatives including the adoption of innovative low-carbon technologies, better energy management, and the procurement of renewable electricity at Taikoo Li Sanlitun, although the impacts of COVID-19 also lowered the electricity demand. For further information about our progress against SBTs and our efforts to reduce our carbon emissions, please click here. Carbon Emissions of Portfolios 2018-2022 e) Scope 1 Scope 1 O2 150,000 1,679 Scope 1 3,630 f C Scope 2 1,461 Scope 2 Scope 1 s o 121,952 Scope 2 112,364 1,496 Scope 1 e 120,000 110,557 Scope 2 n 190 Scope 1 n 94,893 o Scope 2 6,057 T 90,000 86,558 Scope 1 Scope 2 Scope 1 Scope 1 Scope 1 s ( 4,550 4,865 6,220 n 64,379 5,679 o i Scope 2 Scope 2 Scope 2 s Scope 2 s i 60,000 46,252 46,166 40,254 43,874 m n E o 30,000 b r a C 0 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Hong Kong Portfolio Chinese Mainland Portfolio e)2 120,000 O f C s o 90,000 e Scope 1 n Scope 1 Scope 1 Scope 1 n 4,675 Scope 1 o 3,984 3,599 4,064 T 60,000 Scope 2 3,428 s ( Scope 1 Scope 1 Scope 1 Scope 1 Scope 1 Scope 2 35,421 Scope 2 Scope 2 Scope 2 n 56 51 29,545 o 33 27,735 26,732 i 17 18 22,100 s 30,000 s Scope 2 Scope 2 i Scope 2 Scope 2 Scope 2 m 7,133 7,664 4,924 3,706 3,161 n E 0 o b 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 r a C U.S.A. Portfolio Hotels Scope 1 emissions Scope 2 emissions SUSTAINABLE DEVELOPMENT REPORT 2022 167
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 Carbon Intensity of Portfolios 2018-2022 ) s o i l o f t r o . P 0.12 0.111 A 0.109 . ) S . s 0.103 el d U t n o 0.109 H d a ( 0.10 0.102 n 0.088 a ear l y y n / t i t nsi a h 0.079 g e e M i 0.085 t s n 0.08 0.074 Hong Kong Portfolio In e t 0.073 0.081 n n es o i u b h g U.S.A. Portfolio r , C / 0.069 a K e2 C H O 0.06 r ( f C 0.053 a e s o 0.047 y e 0.045 2/ n m n Chinese Mainland Portfolio / o e2 T 0.04 Hotels O 0.039 0.038 f C s o 0.030 0.029 e 0.029 n n 0.02 o T 0 2018 2019 2020 2021 2022 Carbon Emissions - Scope 3 In 2019, Swire Properties developed SBTs which were validated, and approved by SBTi. Aside from our ambitious Scope 1 and 2 emissions target, our SBTs also encompass the significant categories of our upstream and downstream value chain emissions. We have established science-based targets to reduce the emissions generated by capital goods and downstream leased assets by 25%29 and 28%³0 per square metre respectively by 2030. Swire Properties is conscious of our direct and indirect emissions at various stages along the value chain. Besides measuring Scope 1 (direct carbon emissions mainly from energy combustion on-site) and Scope 2 carbon emissions (indirect carbon emissions which mainly comes from electricity purchased and used), since 2018 we have conducted comprehensive reviews of our Scope 3 emissions (indirect emissions that occur along the value chain) to understand our emissions sources and identify the associated material categories for management and reporting. Our 2022 review identified that the most significant sources of our Scope 3 emissions come from Category 1 – Purchased Goods and Services, Category 2 – Capital Goods, and Category 13 – Downstream Leased Assets, as categorised by the Greenhouse Gas Protocol, accounts for over 70% of our value chain emissions. 29 Compared to the 2016-2018 baseline. ³0 Compared to the 2018 baseline. SUSTAINABLE DEVELOPMENT REPORT 2022 168
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 Scope 3 Emissions by Category Other Categories : 14.1% Category 1 : Purchased Goods and Services 23.0% Category 2 : Capital Goods Category 13 : 18.1% Downstream Leased Assets 30.7% Category 11 : Use of Sold Products 14.1% Category 1’s contribution to our total scope 3 emissions increased from 15.9% in 2021 to 23.0% in 2022. The increase was mainly attributed to the upfront embodied carbon of procured construction materials and on-site energy use during the construction stage at The River and EIGHT STAR STREET, our latest residential development in Vietnam and Hong Kong. The operational carbon associated with residential building was reported under Category 11 - Use of Sold Products. For further information on the lifecycle carbon emissions of the EIGHT STAR STREET project, please click here. The disclosure of our Scope 3 emissions is included in this report and presents a more holistic view of the Company’s carbon footprint along the value chain. This data has been included in our SD Report since 2020 – please refer to Performance Data Summary for details. While Swire Properties may have limited influence or control over some of our Scope 3 emissions categories, we will continuously monitor these emissions and seek opportunities to influence, particularly if they begin to represent an increasing portion of our total carbon footprint. SUSTAINABLE DEVELOPMENT REPORT 2022 169
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 Electricity use intensity 2 In 2022, our electricity use intensity³1 decreased by 41%, from 194 kWh per square metre (“kWh/m ”) per 2 year to 114 kWh/m per year across our global portfolios, as compared to our 2008 baseline year. In 2022, the electricity use intensity in our Hong Kong portfolio (including hotels) decreased by 15% as compared to our 2019 baseline year. Electricity use intensity 2025 Target³2 2022 Progress Hong Kong Portfolio 20% 15% (including hotels) In 2022, the electricity use intensity in our Chinese Mainland portfolio (including hotels) decreased by 9% as compared to our 2019 baseline year. Electricity use intensity 2025 Target³2 2022 Progress Chinese Mainland Portfolio 13% 9% (including hotels) Electricity Use Intensity of Portfolios 2018-2022 ) s o i l o 250 f 237 t r o 221 . P ) A . s 204 S . el 195 t 200 y d U o 179 it n H s ( U.S.A. Portfolio n d a e n ear nt a y I l / n t e i h 142 s a g 150 139 U i y n 127 128 it e M t c s es 117 e u tri n Hong Kong Portfolio c i g 102 e h 2/ 101 96 99 95 l , C m 100 Chinese Mainland E K Portfolio H h/ r ( kW a e 55 56 y 2/ 45 Hotels m 50 38 39 h/ kW 0 2018 2019 2020 2021 2022 For further information about our energy reduction initiatives, please click here. ³1 Electricity use intensity refers to electricity consumption (per square metre) for the provision of shared services for and in the common parts of our buildings. ³2 Compared to the 2019 baseline. SUSTAINABLE DEVELOPMENT REPORT 2022 170
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 Water Use GRI In 2022, the total water usage in all portfolios and hotels decreased by 8% as compared to 2021. On 303 top of our continued efforts on the rollout of water saving initiatives such as the installation of low flow HKEX KPI A2.2, A2.4 restrictors to optimise water usage across our portfolios, we further identified opportunities to reduce freshwater demand such as using seawater for flushing, greywater recycling and rainwater harvesting. At our Hotels, some of the reduction were, in part, due to the relative decrease in the number of guest nights during the period when COVID-19 pandemic worsened. When measured against our 2025 KPI, the water intensity of the Hong Kong portfolio decreased by 9.2% in 2022 as compared to the 2016 BAU baseline. In 2022, the reduction was mainly attributed to the switch of seawater supply for freshwater flushing at Citygate and the restoration in seawater supply for flushing at Cityplaza mall. The water intensity in our Chinese Mainland portfolio decreased by 25.9% compared to the 2016 BAU baseline. In 2022, the reduction was mainly due to the reduced occupancy in offices and footfall in malls. In our Hotels, the water intensity in 2022 has increased by 15.1% as compared to the 2018/2019 baseline used for our 2025 KPI. We attribute this, in part, to the relative decrease in the number of guest nights during the period when COVID-19 pandemic worsened. For further information about our water reduction initiatives, please click here. SUSTAINABLE DEVELOPMENT REPORT 2022 171
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 Water Use and Water Intensity of Portfolios 2018-2022 1,100 11 1,011 m /3 )) m ” 1,000 10 3 936 /2 y 0 m 885 874 e 0 900 9 a 0 r ( “ m H s ( 800 8 3 K e / , C r t g h e u i 700 7 es n W 668 t e a c m n s i e M t b i e u g r 600 6 h a In t i d c / n t n y l e a ear a nsi s 500 5 n u 454 ( d a t o 418 H y h t 415 o n 400 4 t d U e ( 359 el s s . 317 ) S r U . e 300 3 A t . P a o r l W 200 2 t a f t 0.968 1.045 0.912 0.899 0.840 o l o i T o 100 0.408 0.402 1 s 0.285 0.377 0.326 ) 0 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 0 Hong Kong Portfolio Chinese Mainland Portfolio m3 / c m i b 500 470 5 /2 u y 431 422 e d c a n )) 400 m r ( a 3” 356 4 /3 H s g K u u , C o 0 m300 290 3 es h W h i t 0 t n 0 n e a e ( “ s t i e M e s s (200 1.498 1.571 g r e 1.461 2 h a In r U r 1.174 t t 1.095 / i t e y n e t e l a 0.376 0.352 0.442 ear a nsi m 100 0.403 0.435 1 n l W 106 111 ( d a t a 64 67 H n y t 0 54 o d U o 0 T t el . 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 s S . ) A U.S.A. Portfolio Hotels . P o r t f o l i o Total Water Use Water Intensity s ) SUSTAINABLE DEVELOPMENT REPORT 2022 172
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 Water Intensity 2025 Target 2022 Progress Hong Kong Portfolio 10% 9.2% Chinese Mainland 20% 25.9% Portfolio Hotels 8% 15.1% Remarks: • Our Hong Kong portfolio refers to our office and retail portfolios in Hong Kong, excluding hotels; our Chinese Mainland portfolio refers to our office and retail portfolios in the Chinese Mainland, excluding hotels. • For our Hong Kong portfolio and Chinese Mainland portfolio, the water intensity reduction targets are compared to a 2016 BAU baseline year. • For Hotels, the water intensity reduction targets set is compared to a 2018/2019 baseline year. Materials Used GRI By Projects Under Development in 2022 301-1 119,879 m3 15,372 tonnes 2,139 m3 Concrete Reinforcement bar Timber 5,850 MWh 308,593 litres 71,444 m3 Electricity consumption Diesel consumption Water consumption Remarks: • Projects under development refers to projects that are under construction or in the pre-certification stage. • Includes investment properties under development in all portfolios, including joint venture and non-joint venture projects. • “Diesel consumption” includes biodiesel consumption. SUSTAINABLE DEVELOPMENT REPORT 2022 173
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 Climate Change GRI Swire Properties recognises that climate change poses significant risks and also presents significant 305 opportunities to our business. We are firmly committed to reducing climate impacts and optimising HKEX Aspect A1, A2, resource efficiency throughout our operations. A3, A4 KPI A1.5, A3.1, We are responding to the Climate Change focus area through initiatives on mitigation, adaptation and A4.1 resilience. The relevant SDG is: SDG 13 Taking urgent action to combat climate change and its impacts. Our Climate Change Policy outlines our commitment to managing climate risks across our operations and to developing mitigation, adaptation and resilience strategies to address those risks in line with global best practices. Continuously Progressing Towards our Science-based Targets Scope 1 and 2 Emissions 2022 progress against SBT Scope 1 and 2 targets for 2025 and 2030 ) 0% % ) ( -5% d 2 n 1.5 e 1 a -10% °C p -al o i c 12% gne S -15% d s ( Dec n ar o b i -20% o s nis s i 23% at m i -25% on n E P o 28% 25% ath b w r -30% a a y e C t u l -35% o s b -40% f A n o o i -45% t c u d 46% e -50% R 2019 2020 2021 2022 2025 2030 Baseline Year SUSTAINABLE DEVELOPMENT REPORT 2022 174
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 Attributing factors to year-on-year changes in Scope 1 and 2 carbon emissions 185,000 (+2.1%) (+0.2%) 3,636 364 180,000 176,841 -1,675 (-1.0%) 175,000 e)2 -5,582 O C t (-3.2%) s ( 170,000 n o i s (-6.4%) s i 165,549 m 165,000 n E -8,035 o (-4.5%) b r a C 160,000 155,000 150,000 ~ 0 2021 Portfolio Grid Factor New Off-site RE Energy COVID-19[1] 2022 Changes Procurement Efficiency Remarks: [1] Carbon emission reduction associated with the effects brought about by COVID-19 lock-down in certain operating regions In 2022, Swire Properties achieved a 28% absolute carbon reduction compared to the 2019 baseline for our global portfolio. Throughout the year, we continued to adopt innovative low-carbon technologies and management practices and invest in energy efficiency research and development. A lowered energy demand was also observed at some of our portfolios due to impacts by COVID-19. On top of our continuous rollout of energy saving strategies across our portfolios, Swire Properties developed an AI model, in partnership with a digital automation and energy management company, to predict the cooling demand of our commercial building further driving down our energy demand through operation optimisation. We continued to explore opportunities to increase our on-site renewable energy generation across our portfolio and source for off-site renewable electricity, where feasible. This year, we completed the installation of PV panel systems at Devon House and Dorset House at Taikoo Place. Taikoo Hui Guangzhou and Sino-Ocean Taikoo Li Chengdu are powered by 100% off-site renewable electricity, achieving net-zero carbon in its annual electricity consumption for both landlord and tenant operations. In 2022, Taikoo Li Sanlitun became our third portfolio in the Chinese Mainland to enter into an off-site renewable electricity purchase agreement. SUSTAINABLE DEVELOPMENT REPORT 2022 175
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 Scope 3 Emissions – Downstream Leased Assets 2022 progress against SBT Scope 3 – Downstream Leased Assets target for 2030 0% e -5% r t ) D e % ecarbonis e m ) ( -10% at r s 11% i a t on u e P q s ath s -15% wa r s y e d A e s p s -20% n a o e i s s m L i a -25% m e r 28% t n E s -30% o n b w 28% r o a -35% 35% f C n o e 3 – D o i p -40% t o 40% c c u S d ( e -45% R -50% 2018 2019 2020 2021 2022 2030 Baseline Year A 40% reduction against the 2018 baseline was recorded in 2022. This continual downward trend is attributed to: • Tenant operations in Taikoo Hui Guangzhou and Sino-Ocean Taikoo Li Chengdu becoming powered by 100% renewable electricity in 2021 and 2020 respectively • Improvements in tenants’ energy use intensity • Remote working arrangements for some tenants’ employees due to the COVID-19 • Grid emission factor improvement This year, we continued to work closely with commercial tenants to reduce their carbon footprint through a variety of tenant engagement activities, including: • The Green Performance Pledge, a performance-based agreement that acts as a blueprint for our landlord-tenant partnerships. • The Green Kitchen Initiative, a platform that allows our portfolio management teams and our F&B tenants to collaborate on sustainability-enhancing measures before fit-out and renovation projects. • Energy audits that help tenants identify energy-saving opportunities – these have been ongoing since 2008. SUSTAINABLE DEVELOPMENT REPORT 2022 176
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 Scope 3 Emissions – Capital Goods 2022 progress against SBT Scope 3 – Capital Goods target for 2030 2030 Target 2022 Progress 25% 17% per square metre per square metre To reduce embodied carbon emissions throughout the lifecycle of our developments, we have established performance-based targets on embodied carbon for concrete, rebar and structural steel for future projects in Hong Kong. These targets were informed by comprehensive market research and communications with industry associations such as the Construction Industry Council. Since 2020, we have included low-carbon procurement specifications – developed in accordance with international standards such as ISO 14067 – for construction materials such as concrete with pulverised fuel ash (“PFA”) or ground granulated blast furnace slag (“GGBS”), rebar and structural steel with recycled content. 2022 marks the completion of Two Taikoo Place, our latest redevelopment project in Taikoo Place. Throughout the construction process, we continued to work closely with our contractors and suppliers to procure low-carbon building materials and foster better energy management at our construction sites. In 2022, we completed a cradle-to-site carbon footprint calculation for Two Taikoo Place, showing that the upfront embodied carbon emissions of Two Taikoo Place were 76,783 tonnes of CO e and 643.2 kg of 2 COe per square metre construction floor area. A 17% decrease in carbon intensity is achieved compared 2 to our 2016-2018 baseline year. This was attributed by: • Procurement of nearly one hundred percent of low-carbon concrete that had CIC Green Product Certification (Platinum rating) • Adoption of structural steel and rebar with high recycled content and manufactured by the electric arc furnace process • During construction, usage of a battery storage system to replace two traditional diesel generators used to power the two tower cranes – this avoided on-site air pollution and achieved lower carbon emissions For further information on our whole-lifecycle carbon management approach at Two Taikoo Place, please click here. SUSTAINABLE DEVELOPMENT REPORT 2022 177
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 Reinforcing our Commitment to a Net-Zero Future Tackling carbon emissions is the collective responsibility of companies, governments and wider society. Swire Properties is constantly seeking opportunities to communicate our SD ambitions to a broader audience. By sharing our sustainability work, we hope to facilitate the sharing of best practices and to drive industry momentum towards achieving net-zero. This year, our Chief Executive, Tim Blackburn took part in World Green Building Council’s “Placemaking for a Net-Zero Future” global webinar, sharing how Swire Properties is leading the way for other in achieving our net-zero goals. Click here for a video of Mr Blackburn explaining our progress towards net-zero. Net-zero Roadmap Swire Properties was the first real estate developer in Hong Kong and the Chinese Mainland to join the Business Ambition for 1.5°C campaign, led by the Science Based Targets initiative in partnership with the United Nations Global Compact. We have put in place approved 1.5°C-aligned science-based targets to support the delivery of net-zero emissions before 2050. In 2022, our Scope 1 and Scope 2 emissions accounted for 28% of our total carbon emissions. We developed a carbon management hierarchy to prioritise our actions. Our core focus is on reducing demand for energy and resources in both the landlord and tenant areas, then improving the efficiency of our energy and material consumption before switching to low-carbon energy sources – this prioritisation will help maximise our carbon abatement in the most cost-effective manner. 72% of our 2022 emissions came from Scope 3 activities along our value chain. While working to decarbonise our operations, we recognise that we also have an important role to play in facilitating emissions reductions along our value chain through collaborations with our partners. SUSTAINABLE DEVELOPMENT REPORT 2022 178
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 Swire Properties Net-zero Roadmap Remarks: [1] Graph shown is for illustration purpose only. Information presented are not drawn to scale. [2] The Business As Usual (“BAU”) scenario takes into account the Company’s HKD100 billion investment plan. Projected changes in carbon emissions (under BAU scenario) primarily reflect the addition and removal of buildings from our portfolio. The performance of our 2019 baseline is based on our already well-established energy management programmes (including control optimisation, retro-commissioning, equipment replacement, and innovative technologies). BAU scenario assumes no additional energy saving measures are to be implemented across our portfolios and value chain and no further improvements from energy source decarbonisation after 2019. Swire Properties began to set out a roadmap to guide our strategic investment and actions to support our net-zero commitments. This “Net-zero Roadmap” outlines the key areas where the Company will focus its efforts and resources across our global portfolio to deliver a near-term 1.5°C-aligned SBTs and transitioning to net-zero before 2050. Reduction strategies to support the delivery of our 2025 and 2030 1.5°C-aligned near-term science-based targets (“SBTs”) : Scope 1 and 2 Emissions Energy Efficiency • Continue to invest in and develop certified green buildings with best-in-class energy efficiency and climate resilience, through the adoption of passive building designs and energy-efficient building systems. • Perform retro-commissioning and technical upgrades across our portfolios in pursuit of ever-better energy performance such as electrically-commutated (“EC”) motor plug fan. • Digitalisation of building operations via rollout of smart energy management platforms and digital twin systems. • Extensive application of innovative low-carbon and energy-efficient technologies such as integrated direct current microgrid solutions. • Increase the adoption of on-site renewable energy generation and off-site renewable electricity procurement. SUSTAINABLE DEVELOPMENT REPORT 2022 179
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 • Maintain and improve our energy management plan in line with ISO 50001. • Continue our collaboration with academic institutions such as Tsinghua University to explore further energy saving opportunities. Scope 3 Emissions New Development Projects (Scope 3 Emissions – Capital Goods) • The adoption of low-carbon procurement specifications for major construction materials such as concrete, rebar and structural steel. • Minimise use of materials through structural optimisation and low-carbon design. • Early electrification of construction sites and adopt more energy efficient construction methods, equipment and processes. • Expand our sustainable procurement efforts to cover more purchased goods and services. Tenant Engagement (Scope 3 Emissions – Downstream Leased Assets) • Deepen collaboration with our tenants through tenant engagement programmes such as our bespoke Green Performance Pledge, Green Kitchen Initiative and free energy audits. • Promote resource circularity through various tenant engagement initiatives such as the Smart Waste Reduction Programme and Smart Reusable Cup System. Swire Properties Net-zero Roadmap Strategies to help realise our Net-zero commitment: Scope 1 and 2 Emissions Decarbonising our direct operation • Adopting net-zero design in new buildings and major retrofits, and continuous digitalisation and electrification of existing buildings. SUSTAINABLE DEVELOPMENT REPORT 2022 180
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 • Scaling up the adoption of low-carbon and energy-efficient technologies through the support of green financing, Swire Pacific SD Fund and internal financing mechanism such as internal carbon pricing. Energy source decarbonisation • Continue to expand our capacity of on-site renewable energy generation and explore further opportunities of off-site renewable electricity procurement, where feasible. • With China and Hong Kong committing to become carbon neutral by 2060 and 2050 respectively, our portfolio operating in these locations are expected to benefit from the continuous decarbonisation of the grid. Scope 3 Emissions • Expanding the adoption of low-carbon procurement specifications to a wider spectrum of construction and building materials, supplies and services. • Ramping up our engagement programme and support to suppliers, tenants and other value chain partners to improve data and best practices sharing and to build up their climate resilience in the net- zero transition. • Deliver our zero waste to landfill commitment to support the transition to a circular economy and our pledge to reach a state of water neutrality by 2050. Our 1.5°C-aligned near-term SBT and net-zero roadmap provides a clear steer for us in reaching Net-zero emissions by 2050 We endeavour to reduce our emissions through the decarbonisation strategies but understand that residual emissions will remain. These emissions would be neutralised at the net-zero target year and thereafter to help us reach net-zero. SUSTAINABLE DEVELOPMENT REPORT 2022 181
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 Two Taikoo Place – Decarbonisation Strategy along the Building Lifecycle Swire Properties’ latest development, Two Taikoo Place, showcases our most recent low-carbon building development strategies. A whole-lifecycle carbon management approach was adopted by the project team to identify opportunities to reduce emissions spanning the demolition stage, design stage, construction stage and operations stage. In 2022, we completed a cradle-to-site carbon footprint calculation for Two Taikoo Place, showing that the upfront carbon emissions of Two Taikoo Place were 76,783 tonnes of CO e and 2 643.2 kg of CO e per square metre construction 2 floor area³³. Similar to One Taikoo Place, the major carbon emission hotspots came from embodied carbon from concrete, rebar and structural steel, broke down as follows: Breakdown of Two Taikoo Place upfront embodied carbon emissions Scope 1 - Rebar & Structural steel: Direct Emissions 54% (Fuels):
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 The initiatives employed during the various stages of building lifecycle are detailed below: A.Demolition Stage: The process of demolishing the existing old building achieved a high material recycling rate of over 88%. This included broken concrete from the substructure of the existing old building, which was sent to other sites for alternative disposal and to be used as backfilling materials. The H-beam and rebar were also recycled. B.Design Stage: Two Taikoo Place has been designed and built to the highest sustainability standards, achieving Pre- certified Platinum ratings for LEED, WELL and BEAM Plus. Building Information Modelling (“BIM”) was used to optimise structural design, excavation and lateral support works to reduce structural steel usage, rock excavation and concrete usage. Prefabricated rebar and modularised pipe ducts were also used, optimising material use by avoiding cut-off wastage on site. On the procurement side, nearly one hundred percent of the concrete had CIC Green Product Certification (Platinum rating), while structural steel and rebar with high recycled content and manufactured by the electric arc furnace process was also used. C.Construction Stage: Low-carbon strategies were adopted throughout the construction stage, including the use of: • A battery storage system to replace two traditional diesel generators used to power the two tower cranes – this avoided onsite air pollution and achieved lower carbon emissions • An electric forklift • B5 biodiesel • Metal scaffolding for external work – this replaced traditional bamboo scaffolding, reducing the use of timber and reducing construction and demolition waste • Reused timber • Recycled metal including rebar scraps generated from rebar fixing for structural works, H-beam and pipe pile Swire Properties continued to support the BEC Power Up Coalition, designed to facilitate the early connection of construction sites to mains electricity. Swire Properties was one of the first to sign the Power Up Pledge, which is a commitment to optimise electricity use and avoid the use of diesel generators and other high-emissions electricity sources. D.Operations Stage: Two Taikoo Place has a broad array of best-in-class innovative energy saving technologies and initiatives to reduce its operational carbon emissions. These include: • High performance chillers and plant optimisation SUSTAINABLE DEVELOPMENT REPORT 2022 183
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 • EC plug fan in all air-handling units • High-efficiency lift motors with power regeneration • Heat recovery from exhaust air Two Taikoo Place also uses several on-site renewable energy systems: • B100 biodiesel waste-to-energy tri-generation system • Solar photovoltaic panels • A wind turbine – the first wind turbine installed in our global portfolio These are expected to generate on-site renewable energy equivalent to approximately 6% of total landlord’s building energy. Two Taikoo Place also uses a market-leading Neuron Digital Twin system that utilises artificial intelligence to analyse and “learn” from large, historical data sets to optimise the efficiency of its building systems. This knowledge is then deployed to establish trends, forecast energy usage, optimise the running of a multitude of building systems, and detect faults, which allows for predictive maintenance. We will also install electricity sub-meters to facilitate electricity use monitoring and management by tenants. Partnership with National University of Singapore (“NUS”) on EIGHT STAR STREET Residential Development For our EIGHT STAR STREET residential development, we partnered with NUS in a first- of-its-kind whole lifecycle carbon assessment for a residential building. In addition to calculating upfront embodied carbon emissions, as we have done for our recent commercial projects – One Taikoo Place, Two Taikoo Place and Six Pacific Place – in this assessment, NUS also developed a 3D BIM model to simulate energy consumption and estimate the lifecycle operational carbon emissions for this 21-storey residential building with retail shops and amenities on the lower ground, ground and first floors. SUSTAINABLE DEVELOPMENT REPORT 2022 184
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 The study predicted the building’s lifecycle carbon emissions as below: Breakdown of EIGHT STAR STREET residential development's lifecycle carbon emissions Upfront carbon³5: 31% Rebar: 59% Operational carbon³4: Concrete: 35% 69% Aluminium: 3% Others (including on-site electricity use, timber and glass): 3% The study also explored how different design considerations might affect the building lifecycle carbon emissions: • Low-carbon construction materials: the use of low-carbon concrete (with pulverised fuel ash or ground granulated blast furnace slag), rebar and structural steel with recycled content, and green hydrogen steel • Structural optimisation to reduce material use and associated carbon footprint • The adoption of Modular integrated Construction (“MiC”) and Design for Manufacture and Assembly (“DfMA”) Findings from the study is published as an academic paper at MDPI. In 2022, Swire Properties started to collect electricity, water and waste data for selected existing residential buildings. These data will deepen our understanding of our energy consumption patterns of our residential portfolio and identify opportunities for improvement in future. ³4 Operational carbon is being calculated assuming a 50-years operational lifespan. Data estimates are being made using DesignBuilder’s energy simulation with reference to 1.5°C Net-Zero World Scenario. ³5 Upfront carbon includes carbon emissions associated with raw material acquisition, manufacturing, transportation, construction and installation. SUSTAINABLE DEVELOPMENT REPORT 2022 185
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 Partnership with Tsinghua at INDIGO II We recognise that emissions associated with our capital goods, which includes emissions associated with the upfront carbon of new development projects, as one of the major contributors to our Scope 3 emissions. Leveraging our experience of upfront carbon emissions calculations from projects in our Hong Kong portfolio, in 2022 we partnered with Tsinghua University to develop a carbon emissions calculation tool for projects in the Chinese Mainland covering the whole lifecycle stage from cradle-to-grave, including raw materials acquisition, manufacturing, transportation, construction, building operations, demolition and disposal. In 2022, we began working with our main contractors using this tool to collect data at our INDIGO II extension project. Climate Risk Assessment Our comprehensive climate risk assessment identifies the key risks posed by climate change to our business operations and the business opportunities that may arise from new climatic conditions. Physical Risk Assessment This consists of asset-level modelling of both the acute and chronic physical risks associated with various climate scenarios, presented in selected timeframes from the immediate term to the distant future – 2030, 2050, and 2100. It also includes detailed asset-level assessments that evaluate individual buildings’ sensitivity and adaptive capacity to the potential effects of the identified climate risks. The analysis identified that overall, there are low to moderate levels of risk for flooding, heat stress, water stress and extreme wind for our global portfolio in all assessed climate scenarios. These risk levels are attributed to the relatively robust adaptive capacity and mitigation measures we have integrated into our buildings. We also identified short-and mid-term measures for individual buildings to mitigate risks and build resilience across our portfolios. Examples include: • Upgrading flood protection measures and alert systems • Improving chiller efficiency • Regularly inspecting glass façades • Installing smart monitoring systems SUSTAINABLE DEVELOPMENT REPORT 2022 186
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 Some of these resilience measures will also be incorporated into the planning and design stages of new developments to ensure our assets will continue to be resilient under different future climate scenarios. With the announcement of the Company’s HKD100 billion investment plan for new projects in the Chinese Mainland and Hong Kong, it is of the utmost importance to expand our climate risk assessment work to cover new project sites. This will allow us to critically evaluate the potential climate exposure of these developments and take early strategic action to incorporate climate resilience into the projects’ design and planning stages. After the release of the Sixth Assessment Report (AR6) by IPCC in 2022, we immediately began to update our climate models to incorporate the latest available climate science. We will also perform relevant deep-dive hazard modelling for selected projects, such as urban drainage modelling, riverine flood modelling and coastal hydrodynamic modelling, using outputs from climate models. The results will be analysed to generate climate-related parameters and design concepts for projects in order to help design teams communicate and channel climate-related considerations into their designs. Assessment of Transition Risks and Opportunities This is a comprehensive review of global, national and local government policies, including Hong Kong’s Climate Action Plan 2050, released in 2021, as well as regulatory, market and technological trends based on different climate scenarios involved in the global transition to a low-carbon economy. We identified a number of risk and opportunity drivers that may have a financial impact on our business under three different climate scenarios: the “Net Zero Scenario” (1.5°C); the “Paris Consistent Scenario” (2°C); and the “Hot House World Scenario” (3°C). The drivers include tightened building energy codes and guidelines, increased market demand for green and energy-efficient properties and climate-resilient properties. SUSTAINABLE DEVELOPMENT REPORT 2022 187
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 Heat map showing the estimated annual impact of climate-related risks and opportunities under different climate scenarios in 2030 Risks Opportunities Risk / Opportunity Driver 1.5°C 2°C 3°C 1.5°C 2°C 3°C Scenario Scenario Scenario Scenario Scenario Scenario Tightened building energy codes and guidelines Introduction of carbon pricing in operating markets More stringent public disclosure requirements Increased market demand for climate resilient properties Increased market demand for green and energy efficient properties Increased tenant demand for energy efficiency and data transparency Growing investor demand for green and low- carbon finance and investment Potential increase in insurance premiums Increased exposure to reputation and litigation risks Greater adoption of low-carbon construction materials Utility supply and cost Increased adoption of green and low-carbon technology Increased adoption of renewable energy Risk level Lower risk Moderate risk Higher risk Lower opportunity Moderate opportunity Higher opportunity Not applicable Based on the analysis, our current business and sustainability strategies will allow us to effectively manage the identified transition risks and capture the identified opportunities during the transition to a low-carbon economy. These strategies include: • 1.5°C-aligned science-based targets to drive long-term carbon reduction • Investment in, and development of, certified green buildings with best-in-class energy efficiency and climate resilience • Investment in renewable energy measures throughout our portfolio • Wide application of innovative green technologies • Commitment to green financing • Engaging our supply chain, tenants and other relevant stakeholders in climate resilience and sustainability initiatives We also conducted a quantitative assessment of the potential financial impacts of key identified transition risks and opportunities that will inform our risk management and strategic planning. For more information, please refer to our Climate-related Financial Disclosures. SUSTAINABLE DEVELOPMENT REPORT 2022 188
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 Miami Back Bay Resiliency Study In January 2021, concluding a three-year exercise, the United States Army Corps of Engineers (“USACE”) proposed a plan to protect Biscayne Bay and the Downtown area from storm surges and a sea level rise. While the proposal met the engineering criteria, the structural solution consisting of a massive flood wall, which risked compromising the views and functionality of the waterfront. Swire Properties engaged an engineering firm to propose an alternative solution and design a long-term environmental solution that both protected and enhanced Miami’s urban coastline. Formally presented in February 2021, the plan envisioned a series of barriers to dissipate wave energy including a combination of submerged oyster reefs, mangroves, revetments and localised sea walls. The output, which also met engineering criteria, provided a platform for the County and municipalities to discuss viable nature-based solutions as an alternative to the proposed flood wall. As a result of input from Swire and the County’s and other governmental entities, in 2022 the USACE agreed to reconsider the proposed flood wall. They have now budgeted an additional USD8.2 million and 60 months for the study. Upon the announcement of the new study, an Army spokesperson said, “It is critical that any plan balance project performance while also preserving and protecting the environment and does so in an equitable manner for the community³6.” ³6 https://www.wlrn.org/news/2022-09-07/army-corps-agrees-to-redo-billion-dollar-plan-to-fortify-miami-dade-against-storm- surge SUSTAINABLE DEVELOPMENT REPORT 2022 189
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
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 Funded by the Swire Pacific SD Fund, Swire Properties is piloting a PEDF solution at Building 15 and the RED of Taikoo Li Sanlitun. On-site implementation work commenced in late 2022 and completion is targeted for early 2023. Significant energy savings are anticipated, which will result in cost savings to tenants, lower carbon emissions and further support Company and government sustainability initiatives. Another PEDF pilot project is under development at Taikoo Hui Guangzhou. This will be tailor-made for DC applications and will improve the flexibility and reliability of the energy supply. The Global AI Challenge and Other Energy Saving Awards Swire Properties partnered with a digital automation and energy management company in the “Global AI Challenge for Building Electrical and Mechanical Facilities”, held between November 2021 and September 2022. Organised by the Hong Kong government’s Electrical and Mechanical Services Department and the Guangdong Provincial Association for Science and Technology, this global event highlighted AI development and applications in the building services industry. It aimed to promote international innovation and technology ideas through exchange and cooperation. The event was the first and largest AI event related to building electrical and mechanical services in the world. Our goal was to develop an AI model to predict the cooling demand of a commercial building and the joint team won the Grand Prize – the “Alliance Contracting Outstanding AI Influencer Award” and a Gold Award. We also had the best model accuracy in the Open Group, consisting of 44 global teams. The model is now being implemented in our Cloud-Based Smart Energy Management Platform and can accurately predict the cooling load in our buildings 24 hours in advance. Meanwhile, Taikoo Hui Guangzhou won the “Best Practice Award for Building Energy Efficiency”, hosted by Tsinghua University. The award recognised the development’s continuous improvement in building energy efficiency over the past 10 years. Taikoo Hui Guangzhou was also featured as a case study in Tsinghua University’s Annual Report on China Building Energy Efficiency 2022. SUSTAINABLE DEVELOPMENT REPORT 2022 191
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 Multiple Energy Saving Strategies Across our Portfolio As in previous years, in pursuit of ever-better energy performance, Swire Properties continued to perform technical upgrades at all our properties. These included: Energy Valve Installation at Citygate Outlets We installed energy valves at the main chilled water supply zones and in the offices and shops of Citygate Outlets to optimise energy use by controlling chilled water temperatures and preventing overcooling of occupied areas. These valves enable flow control and delta temperature control of the chilled water system, which will in turn produce a better energy performance. They will also accumulate operational data for analysis and verification. This ongoing project will cover all zones of the Citygate mall and offices by 2026. Electrically-commutated (“EC”) Motor Plug Fan Retrofits Across Our Properties Centrifugal fans in air handling units (“AHUs”) at Taikoo Place, Cityplaza, Pacific Place, Citygate, Island Place Mall and Taikoo Hui Guangzhou were replaced with electrically-commutated (“EC”) plug fans that achieve better energy performance and produce less noise and vibration. These fans are estimated to reduce fan power consumption by 20 to 30%. Conversion to Variable Primary Flows in our Chilled Water Systems At Cityplaza, we have converted our chilled water system from constant-primary variable-secondary to a variable-primary flow system. The new system eliminates a set of pumps and eliminates the possibility of low delta temperature syndrome, thus reducing the energy consumption of the overall chilled water distribution system. This conversion is expected to save 220,000 kWh per year. Replacement of High-efficiency Air-cooled Chillers We completed the replacement of two air-cooled chillers at Berkshire House, which is expected to save 249,000 kWh per year. Installation of an Automatic Chiller Condenser Tube Cleaning System We completed the installation of automatic chiller condenser tube cleaning system for all chillers at Devon House, which is served by seawater, thus improving its heat transfer efficiency. This is expected to reduce energy consumption by 384,000 kWh per year. Chiller Replacement Project at Sino-Ocean Taikoo Li Chengdu One light duty chiller was replaced with a more energy-efficient variable speed drive chiller in April 2022, which will save about 100,000 kWh of electricity per year. SUSTAINABLE DEVELOPMENT REPORT 2022 192
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 Smart Power Management System at Sino-Ocean Taikoo Li Chengdu Smart power management systems improve both power management and safety by making the power supply more reliable. In turn, this creates efficiencies and frees up technicians to perform other important tasks. At Sino-Ocean Taikoo Li Chengdu, the new smart power management system began operating in December 2022, providing real-time data monitoring and failure alerts, and giving easy-to- enact precautions to operators. Energy-saving Retrofits at Taikoo Hui Guangzhou At Taikoo Hui Guangzhou, two projects created significant energy savings this year. The installation of a variable-speed drive cooling tower will save around 50,000kWh per year; while eight centrifugal fans in primary air units (“PAUs”) and AHUs were replaced with EC plug fans, which are highly efficient, have a long life, and produce low noise and vibration. These new plug fans will save around 100,000 kWh per year. Replacing Fluorescent Lighting with LEDs at Swire Hotels At The Upper House, the team replaced 88 fluorescent light tubes with LED lights in the guest floor light boxes. The fluorescent lights were 28W, while the new LED lights are 12W. This will create savings of over 12,000 kWh per year. At some of our Pacific Place Apartments, we replaced 26W fluorescent light tubes in the emergency staircases with 10W LED lights. Altogether, 118 lights were replaced which will save over 21,000 kWh annually. Chiller Replacement at The Opposite House In April 2022, the screw-type chiller was replaced by an oil-free chiller. This replacement will save approximately 150,000 kWh per year. Carbon Management in Our Hotels Our Hotels use solar energy to heat up water in their kitchens, and have induction cookers, variable speed controls for kitchen exhaust fans, heat recovery functions for gas cooking stoves, and electric conveyor dishwashers to maximise kitchen energy efficiency. Electric cooking reduces energy use between 20% and 50% when compared to traditional gas cooking. LED lights are installed in all kitchens, which consume between 35% and 50% less energy than fluorescent tubes and last twice as long. The restaurants’ sustainable food sourcing initiatives prioritise procuring food ingredients from local or regional sources to reduce our overall carbon footprint. All House Collective hotels maintain a consistent auditing system to identify energy efficiency improvement opportunities. SUSTAINABLE DEVELOPMENT REPORT 2022 193
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 New Lighting at EAST Hong Kong In 2022, we completed replacing the decorative lighting in guest rooms at EAST Hong Kong to LED, reducing decorative lighting energy consumption by 141,000 kWh, or 60%. EAST Hong Kong has dimming systems in the lobby and restaurants to provide adequate lighting level with less power consumption; while motion sensors are in use in the hotel’s gym between 11pm-6am daily, which automatically switch off lighting and TVs if the gym is unoccupied. The hotel also participates in Hong Kong government’s Charter on External Light, in which external decorative lighting on the property is switched off daily from 10:45pm to 5:30pm the next day to save energy. SUSTAINABLE DEVELOPMENT REPORT 2022 194
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 Increase in Renewable Energy Adoption On-site Renewable Energy Generation One of our 2025 KPIs is to generate 4-6% of the landlord’s building energy from renewable or clean energy sources in selected new office developments. At Two Taikoo Place, we are installing solar PV panels, a wind turbine and a waste-to-energy tri-generation system, which we estimate will supply renewable energy equivalent to approximately 6% of the landlord’s building energy. We continue to explore other ways of increasing on-site renewable energy generation across our portfolio, such as installing solar PV panels on the roofs of existing developments like INDIGO, Taikoo Hui Guangzhou and Taikoo Li Sanlitun. We installed additional high-efficiency solar PV panels at INDIGO in 2019, while PV panels will be installed on Taikoo Place buildings in phases. A 30 kW PV panel system was installed at Devon House in 2022 which is expected to generate 31,000 kWh annually. Off-site Renewable Electricity Procurement We are committed to exploring new procurement options for off-site renewable electricity for our portfolio, where feasible. Since 2021, Taikoo Hui Guangzhou became powered by 100% renewable electricity, joining Sino-Ocean Taikoo Li Chengdu in achieving net-zero carbon in its annual electricity consumption for both landlord and tenant operations and setting a new standard for the real estate sector in Asia. In 2022, Taikoo Li Sanlitun became our third portfolio in the Chinese Mainland to enter into an off-site renewable electricity purchase agreement, with 15% of the landlord’s annual electricity consumption from clean energy sources. On-site Renewable Energy Generated in 2022* 211,398 kWh 31,281 kWh INDIGO Taikoo Hui Guangzhou 4,835 kWh 80,274 kWh Taikoo Li Sanlitun One Taikoo Place 51,235 kWh Dorset House *Include solar PV panel and waste-to-energy trigeneration system SUSTAINABLE DEVELOPMENT REPORT 2022 195
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 Off-site Renewable Electricity Procurement 27,701,806 kWh 10,799,762 kWh Taikoo Hui Guangzhou Sino-Ocean Taikoo Li Chengdu 4,726,830 kWh 2,186,929 kWh The Temple House Taikoo Li Sanlitun 220,115 kWh The Opposite House Continued Progress on our Cloud-Based Smart Energy Management Platform Swire Properties’ Cloud-based Smart Energy Management Platform was launched in 2019 and is being rolled out in phases. Utilising IoT, big data analysis, AI and cloud computing, the platform leverages building operations data to generate energy management and energy-saving insights. Currently implemented at Taikoo Place, Pacific Place, Cityplaza, Citygate, Taikoo Hui Guangzhou, INDIGO and Sino-Ocean Taikoo Li Chengdu, the platform will ultimately be used at all our Hong Kong and Chinese Mainland properties. This year, the platform identified opportunities to achieve a 50% reduction in energy use from AHUs serving the central link bridge at Cityplaza. In the 2023 ASHRAE Technology Award, the Retro- Commissioning and Digital Transformation of Cityplaza Mall through the Cloud-Based Smart Energy Management Platform received a First Place award in the Commercial Buildings Existing Building Commissioning (“EBCx”) Category. The Platform is also equipped with a machine-learning model which is able to provide accurate cooling load predictions 24 hours in advance, thus enabling better chiller control sequencing. The machine learning model for cooling load prediction was used in the “Global AI Challenge for Building Electrical and Mechanical Facilities”, held between November 2021 and September 2022. The team won a Gold Award and the Grand Prize – Outstanding AI Influencer Award, and had the best model accuracy in the Open Group out of 44 global teams. The platform’s features and performance has been recognised in CIBSE Building Performance Awards 2023 – Best Digital Innovation Award. This award recognises and celebrates innovation that has made a significant contribution to digital engineering, showing ground-breaking thought. SUSTAINABLE DEVELOPMENT REPORT 2022 196
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 Saving Innovations Two energy saving innovations were piloted at our properties this year. The first was a nanofluid solution consisting of aluminium oxide nanoparticles. The nanofluid is added to the chilled water system in one of our shopping malls to increase the water’s thermal conductivity, thus improving its heat transfer efficiency and reducing the system’s energy use. The nanofluid is expected to reduce chiller energy consumption by approximately 12.5%, or around 6% of landlord annual electricity consumption for the mall. The second was a pilot scheme to create advanced air duct seals for primary air ducts serving One Pacific Place, Three Pacific Place, 28 Hennessy Road, and Cityplaza, where deteriorating primary air ducts were beginning to leak. A water-based aerosolised sealant made from vinyl acetate polymer was used to seal the leaks, reducing air leakage, meaning less energy is wasted. The pilot sealing work indicated a saving of approximately 6% fan energy and 3% associated cooling energy, leading to 3-4% energy saving related to the primary air units. SUSTAINABLE DEVELOPMENT REPORT 2022 197
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 Collaborations with Tsinghua University Since 2011, Swire Properties has worked with Tsinghua University through the Joint Research Centre for Building Energy Efficiency and Sustainability. Together, we develop and test new methods to increase energy efficiency and improve environmental performance in our projects. This collaboration continues to generate substantial energy savings and allows us to share new ideas and practices with our employees, business partners, industry peers and other researchers. We are working to push the boundaries of traditional building management by developing new AI technologies, improving indoor air quality (“IAQ”) control measures, increasing the generation and use of renewable energy, and other measures to make our portfolios even more energy efficient and sustainable. Highlights of our partnership in 2022 included: • Retro-commissioning work at Taikoo Li Qiantan • Developing AI technologies for plant optimisation and smart facility management • Developing DC microgrid guidelines and reviewing the DC microgrid pilot project design • A whole-lifecycle building carbon emissions study where an accounting tool was developed and adopted by the INDIGO Phase Two extension development project. SUSTAINABLE DEVELOPMENT REPORT 2022 198
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 Resource and Circularity GRI We are committed to supporting the transition towards a circular economy by reducing and managing 306 waste effectively and promoting circularity across our operations. We aim to identify the impacts of HKEX Aspect A1, waste disposal from our business activities, set targets to continually improve our waste management A2, A3 performance and incorporate waste prevention considerations into our procurement processes. KPI A1.6, A3.1 Focusing on Resource Management and Circularity In 2017, we developed our Waste Management Policy to guide our approaches to reducing waste, from the design and construction phases of our projects to the daily operation and management of our buildings. In 2020, Swire Properties began to review this policy to highlight the value of rethinking resource use and promoting circularity and in 2021, we announced our Resource and Circularity Policy, putting greater emphasis on “designing out” waste and keeping products in use while continuing to enhance resource recovery and recycling across our operations. Reframing waste in the context of resource use and management encourages our employees, tenants, suppliers and others with whom we do business to engage with the topic with greater positivity and creativity before resources are consumed. This approach supports our transition to a circular economy and our goal to achieve zero waste to landfill by 2050. The emphasis on circularity will also help prepare the Company and our tenants for upcoming waste-related legislation, such as the compulsory garbage sorting legislation that has been introduced in major Chinese Mainland cities and the municipal solid waste charging legislation in Hong Kong which may be enacted in the latter half of 2023. Our Resource and Circularity Taskforces in Hong Kong and the Chinese Mainland – made up of representatives from our technical services and sustainable development department, portfolio management teams and hotels – meet regularly to evaluate our resource management strategies, analyse waste data, review progress towards our 2025 and 2030 KPIs and facilitate new circularity initiatives. Waste Diversion Rates We track and collect data on more than 20 types of waste produced by our office and retail tenants, hotel guests and occupants of our residences. We strive to manage the downstream processes of each waste stream and work closely with recycling partners to provide secure outlets for the recyclables we collect. 25.4% 44.8% Commercial waste diversion rate in our Commercial waste recycling rate in our Hong Kong portfolio (including Hotels) Chinese Mainland portfolio (including Hotels) Total amount of waste recycled 3,340 tonnes 8,363 tonnes Hong Kong portfolio (including Hotels) Chinese Mainland portfolio (including Hotels) SUSTAINABLE DEVELOPMENT REPORT 2022 199
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 Continuous Efforts to Combat Food Waste Food waste is a significant component of the waste sent to landfill in Hong Kong. Since 2005, when Swire Properties installed our first food decomposer at one of our Hong Kong shopping malls, we have been working with our hotels, restaurants and tenants to deepen our food waste reduction and recycling efforts. In 2022, we collected more than 8,300 tonnes of food waste from our Hong Kong and Chinese Mainland portfolios and our Hotels. In Hong Kong, Swire Properties leverages a programme funded by the Hong Kong government’s Environment and Conservation Fund to promote food waste recycling amongst our tenants. In 2022, over 75% of our F&B tenants and 113 tenanted office floors in Citygate Outlets, Cityplaza, Island Place Mall, Pacific Place, South Island Place and Taikoo Place participated in our food waste recycling programme. Food Waste Recycling Review with HKPC In the first half of 2022, the fifth wave of COVID-19 significantly impacted our F&B tenants. In June, we began partnering with the Hong Kong Productivity Council (“HKPC”) to review the status of food waste recycling at our portfolios. We visited over 100 office and F&B tenants to understand their current food waste recycling practices, identify the support they need (such as providing bins and bags, or posters) and offer specific advice to enhance their food waste recycling performance. One F&B group also nominated 22 shops to participate in an in-depth review on food waste and recyclables management practices. Taikoo Li Sanlitun’s Campaign Against Food Waste Featured on TV The management office and several retail outlets at Taikoo Li Sanlitun were featured in a programme produced by Beijing Radio and Television Station (“BRTV”) that explored the city’s ongoing efforts to reduce non-household kitchen waste. A BRTV production team visited the mall to shoot on-location video of our waste disposal equipment and management system and conduct interviews with tenant representatives from restaurants and a supermarket. The programme outlined Beijing’s new policy to impose a comprehensive weight-based charge for kitchen trash generated by restaurants, canteens and farmers’ markets. It also drew attention to Taikoo Li Sanlitun restaurants that offer customers smaller portions, and asked the public to be mindful of reducing food waste while dining out and embrace the “Clean Plate” campaign that encourages diners to eat everything they have ordered. The programme was aired on two of the channel’s flagship shows. SUSTAINABLE DEVELOPMENT REPORT 2022 200
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 Supporting a Circular Economy for Takeaway Packaging The COVID-19 pandemic has brought about a surge in single-use plastic tableware and packaging around the world, including all the communities in which we operate. In Hong Kong, the government also announced plans to bring forward a ban on single-use plastic tableware. The first phase of this measure may be in force as early as the last quarter of 2023. In 2022, we continue to expand initiatives to promote reuse and recycling. Smart Reusable Cup System at Taikoo Place In 2020, Swire Properties piloted Hong Kong’s first smart reusable cup network at Taikoo Place. While the initiative took a brief hiatus in parts of 2022 due to the fifth wave of COVID-19, we relaunched it in August with a more durable cup design, a new range of three different cup sizes and an expanded network of 11 participating cafe partners and tenants. We also began washing and sanitising the cups at one of our F&B tenant’s kitchens, fully “closing the loop” within Taikoo Place. Use of the system involves customers asking for the cup when placing an order, then returning the cup and lid to any of the five return stations at Taikoo Place. In December, we organised a Reusable Cup Day event in partnership with a participating tenant. Close to 150 beverages were served in Muuse reusable cups or the customers’ own cups only. The event attracted more customers to join our reuse journey and was a successful experiment in gauging customers’ willingness to patronise a café that only uses reusable cups. Since the programme’s launch, we have prevented the disposal of over 16,800 single-use coffee cups. Eco Coffee Cup at Swire Hotels At The Temple House, EAST Beijing, and EAST Hong Kong, coffee drinkers now have the option of purchasing their drinks in a reusable cup instead of a disposable one. The Eco-cup reduces cost and waste and saves customers’ money – when reusing the Eco-cup at the restaurant, they receive a discount on their drink purchase. SUSTAINABLE DEVELOPMENT REPORT 2022 201
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 Reusable Food Containers at Pacific Place In October 2022, we began supporting the city’s first-ever closed-loop reusable packaging pilot programme for delivery platforms, an initiative launched jointly by a food delivery platform and WWF-Hong Kong, an environmental NGO, with funding from the Hong Kong government’s Environment and Conservation Fund. A return machine was placed at One Pacific Place to collect used containers that were then sanitised and recirculated to the programme’s restaurant partners. Shanghai Malls Transform Plastic Bottles into School Uniforms Taikoo Li Qiantan and HKRI Taikoo Hui both have strong plastic bottle collection programmes. The malls gave these collected bottles a new lease on life as school uniforms. After opening in late 2021, Taikoo Li Qiantan began collecting PET bottles. In 2022, 1.7 tonnes of these bottles were recycled into 500 sets of elementary school uniforms which were then donated to schools in mountainous areas via a charity. Meanwhile, in September and October 2022, HKRI Taikoo Hui initiated a month-long plastic bottle recycling programme in partnership with several environmental charities. Recycling bins were set up in the mall, with the collected bottles processed into school uniforms which were again donated to schools in less economically developed areas. SUSTAINABLE DEVELOPMENT REPORT 2022 202
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 Introducing Circularity Concepts to Festive Celebrations and Events White Christmas Street Fair 2022 In 2022, our White Christmas Street Fair continued to work towards being a zero-waste event. From the earliest stages, we incorporated circularity principles into the planning and execution processes to ensure that the materials used were reduced, reused and recycled. Through careful planning of the design and structure of the event installations, the total amount of materials used to set up and run the event was reduced by 23%; while 91% of event setup and consumer waste was diverted from landfills. Resource and circularity measures adopted included: • Producing 5,000 decorative “re-poinsettias”, made from old cabin crew uniforms from Cathay Pacific and bed sheets from Swire Hotels, for decorations at the event. These were then redistributed to staff for use as home decorations. • Creating multifunctional souvenir package which could be reused as food and beverage vouchers at the Street Fair. • Using 3D “printed reversible sand” installations which can be dismantled and reused for new installations, instead of using non-recyclable fibreglass. • Using fully recyclable D-Boards for most signage instead of foam board. • Piloting a closed loop approach for compostable materials. The House Collective Mooncake Boxes – Treasure Chests with Upcycled Jade The design for the House Collective’s 2022 mooncake collections was inspired by traditional Chinese curio boxes, nicknamed the “emperor’s toy chests”. We collected around 50kg of old uniforms and 65kg of glass bottles from our Houses to create a new “jade” called “Ping An Kou”. The materials were melted down into liquid form and remoulded into stylish jade amulets. Once enjoyed, the mooncake box sets can be reused as treasure chests to store items at home, while the “jade” can be used as a stylish accessory – paying homage to the traditional artefacts that families use to pass peace and safety down through the generations, and the same circular mindset that is at the core of sustainability. SUSTAINABLE DEVELOPMENT REPORT 2022 203
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 After the Mid-Autumn Festival, The Upper House team also began collecting used mooncake boxes from customers to be upcycled into lai see packets for Chinese New Year. In addition, as part of The Upper House’s ongoing commitment to our community partners, 10% of profits from mooncake sales will be donated to a local charity serving children without families, pregnant teenagers and in-need young women in Hong Kong. Starstreet Precinct’s Circular Campaign for Christmas In mid-June 2022, Starstreet Precinct began to prepare for a green Christmas by collecting PET plastic bottles and transforming them into Christmas decorations. The team set up 16 recycling locations at Pacific Place and across Starstreet Precinct. Contributors put their bottles into the designated recycling bins, registered and then watched their “upcycled Christmas masterpiece” take shape. Trees were also planted on the contributors’ behalf through a third party – the progress of which could be tracked via a website. In total, around 1,700 plastic bottles were collected and later converted into decorations. The recycled plastics were finally upcycled into small trinkets in early 2023. Zero-waste Festive Decorations at our Hotels Sustainable seasonal celebrations are a tradition at Swire Hotels. Every Christmas, The Temple House incorporates recycled materials into festive decorations for the annual community-driven tree-lighting ceremony. In 2022, we partnered with a design studio to create zero-waste Christmas trees made of thousands of upcycled plastic bottles that were displayed in The Temple House and The Upper House. After the festivities, the trees were deconstructed into a furniture set at The Upper House and tea trays at The Temple House. These were then auctioned off, with all proceeds going to local charities. At EAST Hong Kong, Christmas 2022 welcomed a giant teddy bear made from upcycled materials. The bear’s structure was created from left-over wooden fencing from when EAST Hong Kong operated as a quarantine hotel. This was covered with a layer of used blankets and covered up with fake fur. SUSTAINABLE DEVELOPMENT REPORT 2022 204
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 Enhanced Collection and Recycling of Event Waste at Cityplaza In addition to collecting recyclables from mall customers and tenants, in late 2021, Cityplaza began engaging their marketing and promotions team, technical team and exhibitors to recycle event-related waste. The rationale for this initiative was the observation that at the end of promotion events, renovations and other wide-ranging overhaul projects, a significant amount of material such as hoarding materials were thrown away, when it is completely possible to reuse or recycle these materials. SUSTAINABLE DEVELOPMENT REPORT 2022 205
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 Digitalising and Gamifying Waste Data Over 90% of the waste generated at our buildings come from building users such as tenants. While waste measurement conventionally involves manual weighing and recording, we continue to embrace technologies that can digitalise the waste data collection process. Back in 2021, with the support of the Swire Pacific SD Fund, we launched Hong Kong’s first Smart Waste Reduction Challenge, using smart scales and a digital engagement platform to “gamify” the collective sustainability journey experienced by our employees and tenants. In 2022, the new Smart Waste Reduction Challenge welcomed more tenants. This year, 18 participating teams drawn from 13 office tenants across Taikoo Place, Pacific Place and Citygate as well as the Company’s own offices joined, engaging over 3,400 employees in a workplace waste reduction challenge. The participating teams: • Received recommendations about how to optimise the design and layout of their office waste bins. • Replaced individual desk-side rubbish bins with centralised collection and sorting stations. • Fitted smart scales under each bin to collect live waste disposal and recycling data. • Set up display screens to showcase their waste reduction progress in real-time and benchmark this progress against other teams. • Set and tracked customised performance goals and participated in regular meetings to review waste performance. • Monitored the waste contamination level of their office bins using a waste assessment form. Throughout the challenge, we organised online and offline engagement activities to support participating teams in their waste reduction efforts and support the Green Performance Pledge through goal-setting and tracking, a toolkit and insights. These included: • A virtual award ceremony to recognise the waste reduction and recycling efforts of the 15 teams that participated in the 2021 Challenge. • Three workshops in which participants learnt how to reduce single-use items and textile waste, and a downstream recycling facility visit where tenants learned more about Hong Kong’s waste management. • Two tenant project forums where the tenants’ green teams shared best practices, new ideas and challenges. • A five-day “Go Green Pop-Up” where a recycling game booth was set up to refresh employees’ recycling knowledge. Ice cream treats were also given to colleagues who brought their own container. The event reached over 500 employees across the five participating offices. SUSTAINABLE DEVELOPMENT REPORT 2022 206
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 Smart Waste Reduction Challenge 2022 Achievements 16% 36% reduction in total waste per employee* overall waste diversion rate 91% tenants that set up customised waste performance goals achieved at least one goal *Compared between July to December 2022 and 2021 for tenants who joined the Smart Waste Reduction Challenge in both 2022 and 2021. Pilot Projects to Digitalise Waste Data for Office and Retail Tenants In 2022, Swire Properties began a smart mobile scale pilot project, in which cleaning contractors were provided with a designated smart scale to weigh and record tenants’ waste in a back-of-house area. The trial involved seven office tenants from Taikoo Place and Pacific Place, and they received online live data dashboards and monthly summary reports to understand their waste performance and improvement opportunities. In December, we began another smart waste trial to measure the waste generation and diversion rates of F&B tenants. The pilot involved five F&B tenants at Pacific Place and will provide data that will help review of the outcomes of circularity initiatives in the retail context. Extending the Useful Life of Furniture and Textiles Green Furniture Management Service A Hong Kong and industry-wide first, this year Swire Properties partnered with a provider of sustainable office fit-out and reinstatement to launch a furniture solution for Taikoo Place and Pacific Place tenants. The initiative aims to support a circular economy by significantly reducing the volume of office furniture that goes to landfill. There are few local channels in Hong Kong where used office furniture can be redistributed or reused. This service aims to bridge the gap by giving tenants exclusive access to premium and reused furniture products from around Hong Kong. Our partner stores, maintains and displays these high-quality items at a physical showroom provided by Swire Properties. Tenants can browse the full inventory and make a purchase online or book an appointment to the showroom. We have facilitated some new tenants who have obtained almost all of their office furniture through this service. SUSTAINABLE DEVELOPMENT REPORT 2022 207
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 In addition to this service, the partner offers a sustainable office furniture redistribution service to the Company’s tenants. Tenants with unwanted furniture, often during the reinstatement process, can engage the service provider to arrange re-homing, donation to charities and NGOs or recycling of the constituent components, with a thorough report incorporating the items’ destinations, estimated carbon emissions, and diversion from landfill. As of December 2022, the initiative has helped our Taikoo Place and Pacific Place tenants divert more than 1,300 pieces of furniture from landfills, totalling nearly 40 tonnes. Redress Events at Taikoo Place For the fourth consecutive year, Swire Properties partnered with Redress, a local environmental charity that aims to prevent textile waste, catalyse a circular economy and reduce the fashion industry’s environmental impacts. In October, we once again supported “Get Redressed Month”, Hong Kong’s largest annual clothing drive, by setting up 19 public collection boxes around our portfolios and encouraging our tenants and the general public to donate and give their “pre-loved apparel” a new life. In November, we were also the venue sponsor for the “Redress Sort-a-thon”. In just three days, over 16 tonnes of second-hand clothes were sorted with the help of over 640 volunteers from 36 companies, including our Community Ambassadors. Most of the collected clothes were then either sent for resale at the Redress pop-up shop, donated to over 20 local charity partners or recycled. Pacific Place Apartments Reuse Initiatives Pacific Place Apartments embarked on two initiatives to repurpose old fabrics into useful items. The first initiative involves creating 60 reusable newspaper bags, used to hang daily newspapers on tenants’ door, out of a roll of unused curtain fabric. The second involved making 20 curtain bands, used to tie up heavy curtains, out of old bed sheets. SUSTAINABLE DEVELOPMENT REPORT 2022 208
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 Water GRI Swire Properties monitors water consumption in our buildings and utilises various water-saving 303 mechanisms such as water meters, water flow regulators, automatic taps, and automatic flush toilets and HKEX Aspect A2 urinals. KPI A2.4, A3.1 We regularly encourage our employees and tenants to save water. We also urge our tenants to have in place internal guidelines on fresh and flushing water, as these help us comply with enhancements to the Hong Kong government’s voluntary “Quality Water Supply Scheme for Buildings”. We aim to manage water risk and reduce overall water consumption under the Water focus area. The relevant SDGs are: SDG 6 Ensuring availability and sustainable water management. SDG 12 Ensuring sustainable consumption and production patterns. Water Policy Swire Properties’ Water Policy has been updated to focus on our responsible use of water. Pursuant to this policy, we aim to design and implement efficient water management measures across our operations, ensuring water resource is discharged into the environment safely, and encourage our employees and tenants to consume water responsibly, among other action items. In 2022, we conducted a review of our Water Policy to ensure alignment with global best practices and the latest regulations, and to better reflect water-related issues that are material to Swire Properties. The policy has been updated to strengthen our commitments around the responsible use of water. This includes understanding the water risks in the locations of our developments, reducing water- consumption intensity through improved design, implementing efficient water management measures during operations, ensuring that water is discharged into the environment safely, and engaging our stakeholders to encourage the responsible consumption of water. SUSTAINABLE DEVELOPMENT REPORT 2022 209
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 Water Recycling Several of our properties have grey water treatment and recycling systems in place. The system at Oxford House at Taikoo Place collects, treats and reuses pantry wastewater from office tenants for cleaning purposes, annually recycling about 300m3. Several Chinese Mainland properties including Taikoo Hui Guangzhou, INDIGO, Sino-Ocean Taikoo Li Chengdu and HKRI Taikoo Hui have installed systems to collect and treat wastewater and rainwater for toilet flushing and plant irrigation. One Taikoo Place also has a system that collect rainwater which is then recycled and used to irrigate the gardens and green spaces at Taikoo Square and around the buildings. Recycled rainwater and greywater recycling are used to irrigate the gardens and green landscaped areas at Two Taikoo Place, yielding 100% irrigation-related water saving. Process water from cooling tower is also recycled through a reverse osmosis (“RO”) system and reused in the make-up water tank. Together, these three systems with water efficient fixtures will reduce fresh water demand by over 48%. This year, we continued to explore any opportunities to save water, whether by upgrading or changing maintenance procedures for our equipment, or through new practices in our daily operations. This year we continued our trial programme of adjusting the cleaning schedule for cooling towers, and our partnership with Tsinghua University to study how cooling tower water consumption can be reduced. Using simulations, the study analyses water-use patterns and generates suggestions for optimal practices at different portfolios. We also continued to explore the concept of water neutrality, setting out definitions, scopes and timelines so that we may begin to use the concept in our operations. Water Neutrality Study Swire Properties’ water neutrality study continued in 2022. We defined water neutrality as a state whereby we optimise our direct water usage – fresh water used for achieving business functions that are under the ownership and control of Swire Properties – to reduce our water footprint through reduce, reuse and recycling where possible. It also involves compensating for the negative impacts of our remaining water footprint by replenishing water in the water-stressed regions in which we operate. Replenishment can be achieved through nature-based solutions such as reforestation and watershed protection, the Global Water, Sanitation and Hygiene programme, or through desalination projects. We pledged to reach a state of water neutrality by 2050. SUSTAINABLE DEVELOPMENT REPORT 2022 210
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 Water Saving Initiatives Improving the Grey Water Treatment System at Sino-Ocean Taikoo Li Chengdu This grey water treatment system serves both the mall and The Temple House hotel. The system serves the retail complex and the hotel, and is 3 capable of treating 6,500m of grey water per year. Sustainable Filtered Water for our Hotel Guests and Restaurant Customers in Hong Kong Swire Properties was the first in Hong Kong to adopt a partnership model with a UK-based social enterprise, removing single-use bottled water with the introduction of on-site water filtration systems at Salisterra in The Upper House. Customers can enjoy filtered still and sparkling water from the system, reducing the burden on landfill and carbon footprint needed to transport the single use bottled water. The partnership helps the social enterprise in pursuit of their purpose ’to change the way the world sees water’. The social enterprise delivers a sustainable premium water service for guests, while committing to donating all profits from its business to a global water charity that supports the UN Sustainable Development Goals. The partnership was further rolled out to Mr & Mrs Fox, Above Lounge at Pacific Place and EAST Hong Kong. Sustainable Toilet Renovation at Taikoo Hui Guangzhou At Taikoo Hui Guangzhou, a recent renovation to the bathrooms included a number of SD features – water-free urinals, water-saving toilets, integrated water faucets and hand-dryers to reduce paper use, indoor greenery and the use of sustainable materials throughout such as glass reinforced gypsum walls and ceilings, composite cement walls and high-pressure laminated toilet cubicles. The previous toilet renovation received the Carbon Neutral Certificate in 2021, granted by the China Emissions Exchange, and we sought to attain the same goal in another sustainable toilet renovation project this year. SUSTAINABLE DEVELOPMENT REPORT 2022 211
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 Water Conservation at The Temple House The Temple House and EAST Hong Kong restaurants installed water economisers on all water taps and a LEED-CI standard water saving dish-washing machine to minimise water usage. At The Temple House, The Opposite House and The Middle House, higher flow-rate kitchen faucets were replaced with faucet aerators to decrease water usage, collectively reducing water 3 consumption by over 3,250m . Rainwater Recycling at INDIGO INDIGO’s existing grey water system collects high-quality wastewater and rainwater to make grey water for toilet flushing and greenery irrigation. Cutting-edge treatment technology can effectively treat sewage water, allowing it to reach grey water or even pure water standards for use in cooling towers. In 2022, INDIGO built a sewage water recycling system, further improving our water savings and reducing wastewater discharged into the municipal pipework system. 3 When operating, the system will have the capacity to save up to 85,000 m of water per year. Water Categorisation and Sub-metering Efforts at our Chinese Mainland Portfolio In 2022, our Chinese Mainland portfolio completed the water sub-metering installation project. By breaking down landlord water consumption into specific categories, such as air conditioning, water features, bathroom faucets, cleaning and others, we gain increased visibility on water consumption patterns and system demands. This allows us to optimise water usage and strengthen our efforts to create better water stewardship. SUSTAINABLE DEVELOPMENT REPORT 2022 212
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 Biodiversity GRI Anchored by our Biodiversity Policy, we integrate biodiversity considerations into our new developments 304 and operations and, where relevant, work to minimise any adverse impacts of our operations on biodiversity and ecosystems. Although the majority of our portfolio is located in urban areas where biodiversity issues are usually not material, we have conducted assessments at all of our existing properties and projects under development to determine the status of biodiversity and its importance to the places that we develop and the surrounding natural environment. These assessments have shown that none of our existing properties contain or are located adjacent to areas of globally or nationally important biodiversity. Biodiversity Guidelines In 2022, we started to develop Swire Properties Biodiversity Guidelines suitable for Hong Kong and the Chinese Mainland. The guidelines are designed to define the importance of biodiversity and the Company’s approach to protecting it across our developments. The guidelines will explain the importance of biodiversity, various laws and regulations and recommended actions Swire Properties can take to protect and enhance biodiversity across all stages of our current and future properties. SUSTAINABLE DEVELOPMENT REPORT 2022 213
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 Taskforce on Nature-related Financial Disclosure The Taskforce on Nature-related Financial Disclosures (“TNFD”) was established in 2021 in response to the growing need to factor nature into financial and business decisions. The TNFD is a global, market-led initiative with a mission to develop and deliver a risk management and disclosure framework which organisations can use to report and act on evolving nature-related risks and opportunities, with the ultimate aim of supporting a shift in global financial flows away from nature- negative outcomes and toward nature-positive outcomes. Swire Properties recognises biodiversity and nature loss as one of the emerging risks to our businesses. The health of the ecosystems affects the availability of natural resources and land conditions, thereby our ability to generate value for our stakeholders. With increasing concerns around biodiversity loss and its interconnection with climate change, Swire Properties began exploring the business impact and dependencies on nature, associated nature-related risks and opportunities in accordance with the TNFD framework. In 2022, our Deputy Head of Sustainable Development joined the TNFD as a Taskforce member, providing inputs to the Taskforce to develop the framework. The TNFD’s complete recommendations (v1.0) will be published in September 2023. Swire Properties also started to partner with the World Business Council of Sustainable Development (“WBCSD”) to pilot the TNFD beta framework. We hope our participation will help generate insights that will improve the relevance of the framework to the real estate sector. SUSTAINABLE DEVELOPMENT REPORT 2022 214
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 Occupant Wellbeing GRI We aim to operate and maintain our buildings and workspaces in ways that promote occupant health and 416 wellbeing. HKEX Aspect B6 KPI B6.4 The relevant SDG is: SDG 3 Ensuring healthy lives and promoting wellbeing. On top of numerous physical and mental health and wellbeing considerations, we also design and construct our buildings to enhance visual comfort through the use of natural daylight, glare indices and diverse types of lighting, at the same time minimising the adverse impacts of external lighting, such as sky glow, source intensity and building luminance. We also consider acoustic impacts throughout the design, construction and operational phases of our buildings. We are gradually installing UVC lamps in the air handling units across our portfolios. As at 31 December, this upgrade has been completed for over 650 units in Taikoo Place to help with sterilisation and improve IAQ. Apart from monitoring occupant wellbeing in existing buildings, we also incorporate wellness features and initiatives in our new development projects. IAQ Initiatives in 2022 Indoor air quality has always been important to Swire Properties and our tenants and customers. In a post COVID-19 world, having clean, sanitary indoor air to breathe is a top concern for most people. We are actively working to meet and exceed air quality guidelines at all our properties. In 2022, we installed a continuous IAQ monitoring system and improved HVAC controls in the common areas of all buildings at Taikoo Place and Pacific Place, Cityplaza and Citygate Outlets. The sensors were installed at various locations in the shopping arcade and office lobbies, measuring and displaying temperature, relative humidity, CO , TVOCs, PM2.5, PM10, CO and O . The data is closely 2 3 monitored by our facility management team to ensure good thermal comfort. Since its opening in 2011, INDIGO has continuously improved indoor air quality. In 2022, the ONE INDIGO ® Air standard certification – the first office building in China to obtain office building was awarded RESET ® “RESET Air v2 Commercial Interior” certification for the overall public area. The assessment items include fine particulate matter, TVOCs, carbon dioxide, temperature and relative humidity. SUSTAINABLE DEVELOPMENT REPORT 2022 215
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 Building/Asset Investments GRI As part of our management approach to identify and manage the significant impacts of our buildings 417 on the environment and natural resources, we aim to obtain certification for our buildings under HKEX environmental building assessment schemes that provide benchmarks and objective standards against Aspect A3, B6 which we can measure our performance. KPI A3.1, B6.4 As part of our Building/Asset Investments focus area, we support green building development. The relevant SDGs are: SDG 11 Making cities and human settlements inclusive, safe, resilient and sustainable. SDG 12 Ensuring sustainable consumption and production patterns. Demonstrating and Sustaining Green Building Leadership Our projects employ an integrated design approach in accordance with the requirements of several internationally-recognised green building standards and rating schemes. This requires members of our project teams and operations teams to work together in areas ranging from building design to construction and operation. In 2021, Swire Properties became the first developer in Hong Kong and the Chinese Mainland to join the World Green Building Council’s (“WorldGBC”) Corporate Advisory Board. As part of a select group of global leaders in sustainability, companies that sit on the Corporate Advisory Board guide WorldGBC strategy and activities to accelerate the sustainable building movement. We also encourage our tenants to participate in environmental building assessment schemes and work closely with them to implement sustainability strategies that will help them achieve the relevant certifications. These include local and international green building certification schemes such as: • BEAM Plus, a set of standards recognised and certified by the Hong Kong Green Building Council. • LEED, a rating system devised by the United States Green Building Council. • The China Green Building Label, issued by the Ministry of Construction in the Chinese Mainland. • WELL, a certification scheme developed by the International WELL Building Institute. On top of the above schemes, we also have a SD fit-out programme, part of the Green Performance Pledge, which offers a set of SD Fit-out Technical Guidelines for new tenants fitting out their premises, or for existing tenants planning a renovation. These guidelines feature user-friendly templates, office design tips, and a validation and recognition system to improve energy and water efficiency, reduce waste and enhance employee wellness. SUSTAINABLE DEVELOPMENT REPORT 2022 216
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 Green Buildings as a Percentage of our Portfolio 95% 100% of wholly-owned existing buildings³7 are certified of wholly-owned projects under development³8 green buildings, of which 98% have have achieved green building certification ratings. achieved the highest ratings. Green Buildings Certified in 2022 BEAM Plus Lincoln House • Final Platinum (Existing Buildings Version 2.0) Pacific Place • Final Platinum (Existing Buildings Version 2.0) LEED Taikoo Hui Guangzhou • Platinum (LEED v4 for Building Operations and Maintenance: Existing Buildings) Taikoo Li Sanlitun, Beijing • Platinum (LEED v4.1 for Operations and Maintenance: Existing Buildings) WELL Taikoo Hui Guangzhou • Platinum (WELL V2 Core) ³7 “Wholly-owned existing buildings” do not include joint venture projects and trading properties and are measured as the percentage of total GFA. ³8 “Projects under development” refers to projects that are under construction or in the precertification stage and does not include joint venture projects and trading properties. SUSTAINABLE DEVELOPMENT REPORT 2022 217
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 Green Building Award (GBA) 2021 and RICS Award 2022 Swire Properties won the Pioneer Award in Green Building Leadership (Facilities Management) at the Green Building Award 2021 and was the Sustainability Award winner at the RICS Awards 2022 Hong Kong. Six of our buildings also won the “GBA Low Carbon Buildings Top 100 Award”, presented by the Greater Bay Area Carbon Neutrality Association: Taikoo Hui Guangzhou Mall, Taikoo Hui Guangzhou Office Towers 1 and 2, One Island East, One Taikoo Place and Cityplaza. Taikoo Li Sanlitun West received an Excellence Award in the “Regeneration Project of the Year” category at the RICS Awards China 2022, recognising that the project has re-energised the Sanlitun community and created a fashionable lifestyle destination that is connected to public services, improving the lives of the local residents. Swire Properties also made the list of finalists for the Sustainability Award at the 2022 British Business Awards, organised by the British Chambers of Commerce in China. Green Building Design for Savyavasa Savyavasa, the Company’s first residential development in Jakarta Indonesia, is committed to achieving Green Mark Gold rating under the Building and Construction Authority (“BCA”) Green Mark for Residential Buildings. Among the features which will earn the development this certification are: • Double glazing to reduce heat transfer and save energy and for noise cancellation. • Use of energy recovery ventilators to pre-condition and filter air, saving energy and providing a supply of clean, fresh air. • 100% water efficient fittings to reduce water usage. • Provision of 20 electric charging stations and priority charging lots within the development, with provisions made to extend these services as demand increases. • Use of certified low-VOC paints in all applicable areas. • Construction materials compliant with green certification. SUSTAINABLE DEVELOPMENT REPORT 2022 218
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 Taikoo Hui Guangzhou Wins Rigorous LEED Platinum Certification Again Five years after achieving LEED Platinum certification, Taikoo Hui Guangzhou renewed the certification, meeting the standards of the v4.0 rating system. Since its opening in 2011, the shopping centre has been a leader in sustainability practices. Among the mall’s recent achievements are becoming powered by 100% renewable electricity in July 2021, and having its restrooms recognised by the Guangzhou Emissions Exchange for outstanding performance in carbon neutrality – the first public convenience facility in a commercial complex to receive this recognition. This year, Taikoo Hui Guangzhou helped three more of its F&B tenants earn a One-Leaf rating, and two more of its F&B tenants earn a Two-Leaf rating, the second-highest grade in the Swire Properties Green Kitchen Initiative. Taikoo Li Sanlitun Wins Platinum LEED v4.1 Certification In June, Taikoo Li Sanlitun earned Platinum LEED v4.1 certification for its operations and maintenance of existing buildings, a step up from its LEED Gold v3 which the mall received in 2017. As Swire Properties’ first retail-led, mixed-use development in the Chinese Mainland, Taikoo Li Sanlitun has long been committed to promoting SD. Prior to receiving LEED Gold, the mall improved its energy efficiency through LED lighting renovation, façade insulation and automated waste sorting. Over the past five years, the complex has continued to increase energy efficiency through an HVAC system upgrade in the south zone, saving more than 66,500 kWh per month in the summer, and installing a solar power system in the north zone, paving the way for this latest certification. SUSTAINABLE DEVELOPMENT REPORT 2022 219
Climate-related Financial Disclosures We publish climate-related financial disclosure with reference to the recommendations of the TCFD under four categories - governance, strategy, risk management and metrics and targets.
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Climate-related Financial Disclosures GRI In 2015, the Financial Stability Board 102-30, 201, 305 (“FSB”)³9 established the Task Force on HKEX Climate-related Financial Disclosures Aspect A2, (“TCFD”) to develop voluntary, consistent A3, A4 KPI A3.1, A4.1 climate-related financial risk disclosures for use by companies when providing information to investors, lenders, insurers and other stakeholders. In 2017, the TCFD published a set of recommendations for voluntary climate-related financial disclosures that are consistent, comparable, reliable, clear and efficient, and which aim to provide decision-useful information to lenders, insurers and investors. We recognise the risks and opportunities presented by climate change to our business. In accordance with our Climate Change Policy, we are committed to communicating our management approaches and strategies for climate mitigation, adaptation and resilience to our stakeholders. In 2018, we started to publish climate-related financial disclosures with reference to the recommendations of the TCFD under the four core categories of Governance, Strategy, Risk Management and Metrics and Targets. In 2020, we completed the climate risk assessment for physical and transition risks and opportunities to our global portfolio. This is our fifth set of climate-related financial disclosures. They are set out in the following pages. Governance Swire Properties’ governance around climate-related risks and opportunities Addressing the actual and potential impacts of climate-related Strategy risks and opportunities related to the Company’s businesses, strategy, and financial planning Risk How we identify, assess and manage climate-related risks Management Metrics and The metrics and targets used to assess and manage relevant Targets climate-related risks and opportunities material to Swire Properties ³9 The FSB is an international body that monitors and makes recommendations about the global financial system. SUSTAINABLE DEVELOPMENT REPORT 2022 221
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Governance Strategy Risk Management Metrics and Targets Governance Swire Properties’ governance around climate-related risks and opportunities Board of Directors ESG Steering Committee • Formulate and review climate strategy • Approve targets and initiatives related to climate • Review any significant risks and opportunities related to climate issues • Review performance in achieving climate-related KPIs SD Working Group Performance (Environment) Working Group • Plan and implement mitigation and adaptation policies and measures regarding climate-related issues • Facilitate the integration of climate-related issues into daily operations Our ESG Steering Committee (“ESGSC”) is chaired by our Chief Executive. Other members are the Finance Director and six members of our senior management from the human resources and administration, portfolio management, projects, public affairs and technical services and sustainable development departments. In 2022, an Independent Non-Executive Director of the Company joined the ESGSC; this person is also the Chairman of our Audit Committee. The Chairman of the ESGSC reports relevant SD matters, including climate-related issues, to the Board five times a year. The ESGSC meets quarterly and, in accordance with its terms of reference, has the following overall responsibilities related to climate change: • Formulate and review the Company’s SD 2030 Strategy and climate strategy, including approving targets or key initiatives related to climate change mitigation, adaptation and building climate resilience. • Review any significant risks, opportunities and investments regarding climate change, energy/carbon management and low-carbon transition. • Review on an annual basis the performance of the Company in achieving our energy/carbon intensity reduction targets, including progress towards achieving our science-based targets, and other climate change- and energy-related KPIs. SUSTAINABLE DEVELOPMENT REPORT 2022 222
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Governance Strategy Risk Management Metrics and Targets The Board provides oversight of our risk management framework and SD risks, including climate-related risks. Our SD agenda and the progress of our SD 2030 Strategy are reported by the ESGSC and discussed at quarterly board meetings. We also conduct regular risk identification and analysis and review management processes throughout the year through the Audit Committee and our ERM System. This includes our Corporate Risk Register in which climate change has been identified as an emerging risk. Both the Board and the ESGSC have sufficient knowledge of climate-related issues and the impacts of such issues on the company’s business and operations. Regular training on climate-related issues is provided to ensure that all our people keep abreast of the latest developments. A Working Group under the Performance (Environment) Pillar, composed of members with sufficient technical expertise in climate-related issues, is in place to plan and implement different mitigation and adaptation policies and measures, and to facilitate the integration of climate-related issues into business operations. Our Climate Change Policy guides our management approach and strategy on climate change mitigation, adaptation and resilience. We also support the Business Environment Council’s efforts to develop and promote the Low Carbon Charter for the property and construction sector in Hong Kong. In 2020, we conducted a materiality review to gather feedback from 570 internal and external stakeholders through qualitative interviews and a quantitative survey. The topics of green building construction and renovation, energy efficiency, decarbonisation, climate adaptation and resilience were identified as material issues to our business continuity and development. These issues align with the focus areas of the Performance (Environment) Pillar of our SD 2030 Strategy. SUSTAINABLE DEVELOPMENT REPORT 2022 223
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Governance Strategy Risk Management Metrics and Targets Strategy Addressing the actual and potential impacts of climate-related risks and opportunities related to the Company’s businesses, strategy, and financial planning We recognise that climate change poses different types of risks to our business. Apart from physical risks, such as flooding, extreme weather events and increasing temperatures, which can disrupt or negatively impact our employees, assets and supply chains, we also acknowledge the potential financial impacts that can result from transition risks, which include regulatory, market and reputational risks. Climate change also presents us with opportunities to develop low-carbon and climate-resilient assets to meet the increasing market demand for climate-proof buildings and to mitigate the potential operational costs attributed to extreme weather conditions, such as maintenance and insurance premiums. Also, climate change helps stimulate business innovation and experimentation, which may aid the transition to a lower-carbon economy. We are committed to creating climate-resilient places and communities that are better able to cope with the physical impacts of climate change. We are also committed to developing certified green buildings that are energy-efficient and low-carbon by design and in operation. In 2022, 100% of our new projects under development achieved the highest green building rating; 95% of all existing buildings were certified green buildings; and over 97% of our 2022 gross rental income came from certified green buildings. Under our SD 2030 Strategy, one of our 2025 KPIs is to generate 4-6% of landlord’s energy from on-site renewable energy sources in selected new office developments. At Two Taikoo Place, we are installing solar PV panels, a wind turbine and a waste-to-energy tri-generation system, which we estimate will supply renewable energy equivalent to approximately 6% of the landlord’s building energy. We are also committed to exploring new procurement options for off-site renewable electricity for our portfolio, where feasible. Since 2021, Taikoo Hui Guangzhou became powered by 100% renewable electricity, joining Sino-Ocean Taikoo Li Chengdu in achieving net-zero carbon in its annual electricity consumption for both landlord and tenant operations and setting a new standard for the real estate sector in Asia. In 2022, Taikoo Li Sanlitun became our third portfolio in the Chinese Mainland to enter into an off-site renewable electricity agreement, with 15% of the landlord’s annual electricity consumption from clean energy sources. To prepare for the transition to a low-carbon economy, we have established carbon-reduction targets and initiatives under our SD 2030 Strategy for our Hong Kong and Chinese Mainland portfolios. We have ramped up our science-based targets (“SBTs”) to align with the 1.5°C pathway. These were officially approved in September 2021, making us the first real estate developer from Hong Kong and the Chinese Mainland to establish 1.5°C-aligned decarbonisation goals in line with the Paris Agreement for our global portfolio. Our ambitious new SBTs are approximately 50% more aggressive than our original 2°C-aligned SBTs approved by the SBTi in 2019. These new goals have put the Company on the right path to reaching net- zero emissions by 2050 and support the Hong Kong government’s pledge to achieve carbon neutrality before 2050. SUSTAINABLE DEVELOPMENT REPORT 2022 224
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Governance Strategy Risk Management Metrics and Targets These approved SBTs are: • Reduce absolute Scope 1 and 2 greenhouse gas (“GHG”) emissions by 25% by 2025 (compared to the 2019 baseline). • Reduce Scope 3 GHG emissions from downstream leased assets by 28% per sqm by 2030 (compared to the 2018 baseline). • Reduce Scope 3 GHG emissions from capital goods by 25% per sqm by 2030 (compared to the 2016- 2018 baseline). In 2022, we are making steady progress towards our SBTs: • Reduced absolute Scope 1 and 2 greenhouse gas (“GHG”) emissions by 28% (compared to the 2019 baseline). • Reduced Scope 3 GHG emissions from downstream leased assets by 40% per sqm by 2030 (compared to the 2018 baseline). • Reduced Scope 3 GHG emissions from capital goods by 17% per sqm by 2030 (compared to the 2016- 2018 baseline). Since 2011, we have worked with Tsinghua University through the Joint Research Centre for Building Energy Efficiency and Sustainability to develop and test new methods of increasing energy efficiency and improving environmental performance in our projects. This collaboration continues to generate substantial energy savings and allows us to communicate and share new ideas and practices with our employees, business partners, industry peers and other researchers. To reduce embodied carbon from our development projects and construction activities, we have established performance-based targets on embodied carbon for concrete, rebar and structural steel for future projects in Hong Kong. We have also specified that low-carbon materials should be adopted in our projects and activities such as concrete with pulverised fuel ash or ground granulated blast-furnace slag, rebar and structural steel with recycled content, and the optimisation of structural design to minimise material consumption. We are committed to integrating sustainability considerations into our financing mechanisms. We have been incorporating sustainability into our annual budgeting process to plan the capital required to realise our decarbonisation goals. It ensures adequate resources are allocated towards mitigating and adapting to climate-related risks and to fully recognise opportunities to building our climate resilience. The annual budget is reviewed and approved by the Board. 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. Since 2018, we have obtained green financing through a number of green bonds, green loans and sustainability-linked loans. These fund green projects related to renewable energy, energy efficiency and climate change adaptation. We issue an annual Green Finance Report 2022 that provides information on projects funded by the green bonds and green loan and their estimated quantitative environmental impacts, including energy and water savings, renewable energy generation and wastewater management impacts. In 2022, approximately 60% of our current bond and loan facilities were in a green format. SUSTAINABLE DEVELOPMENT REPORT 2022 225
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Governance Strategy Risk Management Metrics and Targets In 2023, Swire Properties will begin piloting the use of internal carbon pricing (“ICP”) to drive our transition to a low-carbon economy. Our ICP model will take the form of an internal carbon fee. By linking each unit of CO emissions to a fixed cost, our business units will be further incentivised to integrate low-carbon 2 considerations into their business decisions. ICP will become another strategic tool in our carbon management strategy to drive aggressive near-term decarbonisation across our portfolio while we seek to achieve net-zero by 2050. The funds raised through ICP will be directed towards decarbonisation projects that drive or provide additional carbon reduction impact. Our New Ventures department works with investors, accelerators and experts from around the world to source new technologies that add strategic value to our operations, including low-carbon technologies. In 2019, we launched UrbanLab, the first corporate accelerator programme in the Chinese Mainland to focus on PropTech to foster the application of innovative technology solutions relevant to the real estate sector. In 2020, we established a new USD50 million corporate venture capital fund which will be used to invest in relevant and innovative technology companies to help fuel the Company’s ongoing creative and digital transformation. SUSTAINABLE DEVELOPMENT REPORT 2022 226
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Governance Strategy Risk Management Metrics and Targets Risk Management How we identify, assess and manage climate-related risks We assess the key physical and transition risks and opportunities posed by climate change to our global assets and business operations to help us develop long-term strategies that protect our business from climate-related risks. We have used quantitative and qualitative scenario analyses which consider impacts along a timescale which ranges from the immediate term to 2030 and as far ahead as 2100. Physical Risks In accordance with the TCFD’s recommendations, we have conducted asset-level modelling of the acute and chronic physical risks (namely flooding, heat stress, water stress and extreme wind) associated with the four Representative Concentration Pathways (RCP 2.6, 4.5, 6 and 8.5) used by the Intergovernmental Panel on Climate Change. These pathways broadly represent comprehensive climate scenarios related to three projected global average temperature increases: 1.5°C, 2°C and 3°C. We have collated historical data and projected climate variables, such as temperature, precipitation, sea level rise and wind speed from suitable global climate models, and applied local meteorological data to predict local climate scenarios. This data has allowed us to accurately evaluate the exposure of specific assets and operations in selected timeframes, from the immediate term to the distant future, namely, 2025, 2030, 2050, and 2100. We have also undertaken detailed asset-level assessments to evaluate the degree of sensitivity and adaptive capacity of individual buildings under the potential effects of the identified climate risks. These assessments consider system robustness such as existing flood prevention systems and façade conditions; system redundancy, such as the capacity of chillers and water supply; and susceptibility to past extreme weather events. Our analysis showed that there is an overall low to moderate level risk of flooding, heat stress, water stress and extreme wind for our global portfolio in all assessed climate scenarios. This is attributed to the relatively robust adaptive capacity and mitigation measures we have integrated into our buildings. SUSTAINABLE DEVELOPMENT REPORT 2022 227
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Governance Strategy Risk Management Metrics and Targets Flooding Heat Stress Water Stress Extreme Wind Proportion of portfolio under risk of flooding in 4 RCP climate scenarios Low risk Moderate risk High risk Current 2030 2050 2100 81% 19% Current 2030 2050 2100 RCP 2.6 81% 19% RCP 4.5 81% 19% RCP 6.0 81% 19% RCP 8.5 81% 19% Current 2030 2050 2100 RCP 2.6 81% 19% RCP 4.5 81% 19% RCP 6.0 81% 19% RCP 8.5 81% 19% Current 2030 2050 2100 RCP 2.6 73% 27% RCP 4.5 73% 27% RCP 6.0 71% 29% RCP 8.5 67% 33% SUSTAINABLE DEVELOPMENT REPORT 2022 228
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Governance Strategy Risk Management Metrics and Targets Flooding Heat Stress Water Stress Extreme Wind Proportion of portfolio under risk of heat stress in 4 RCP climate scenarios Low risk Moderate risk High risk Current 2030 2050 2100 98% 2% Current 2030 2050 2100 RCP 2.6 98% 2% RCP 4.5 98% 2% RCP 6.0 98% 2% RCP 8.5 98% 2% Current 2030 2050 2100 RCP 2.6 94% 6% RCP 4.5 94% 6% RCP 6.0 94% 6% RCP 8.5 88% 12% Current 2030 2050 2100 RCP 2.6 94% 6% RCP 4.5 88% 12% RCP 6.0 88% 12% RCP 8.5 85% 15% SUSTAINABLE DEVELOPMENT REPORT 2022 229
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Governance Strategy Risk Management Metrics and Targets Flooding Heat Stress Water Stress Extreme Wind Proportion of portfolio under risk of water stress in 4 RCP climate scenarios Low risk Moderate risk High risk Current 2030 2050 2100 79% 21% Current 2030 2050 2100 RCP 2.6 79% 21% RCP 4.5 79% 21% RCP 6.0 73% 27% RCP 8.5 79% 21% Current 2030 2050 2100 RCP 2.6 79% 21% RCP 4.5 79% 21% RCP 6.0 77% 23% RCP 8.5 75% 25% Current 2030 2050 2100 RCP 2.6 79% 21% RCP 4.5 77% 23% RCP 6.0 75% 25% RCP 8.5 54% 44% 2% SUSTAINABLE DEVELOPMENT REPORT 2022 230
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Governance Strategy Risk Management Metrics and Targets Flooding Heat Stress Water Stress Extreme Wind Proportion of portfolio under risk of extreme wind in 4 RCP climate scenarios Low risk Moderate risk High risk Current 2030 2050 2100 81% 19% Current 2030 2050 2100 RCP 2.6 81% 19% RCP 4.5 81% 19% RCP 6.0 81% 19% RCP 8.5 81% 19% Current 2030 2050 2100 RCP 2.6 81% 19% RCP 4.5 81% 19% RCP 6.0 81% 19% RCP 8.5 77% 23% Current 2030 2050 2100 RCP 2.6 81% 19% RCP 4.5 77% 23% RCP 6.0 75% 25% RCP 8.5 75% 25% SUSTAINABLE DEVELOPMENT REPORT 2022 231
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Governance Strategy Risk Management Metrics and Targets We have identified short- and medium-term measures for individual buildings that will mitigate risks and building resilience across our portfolios. These include upgrading flood-protection measures and alert systems, chiller efficiency improvements, glass façade inspections and smart monitoring systems. Some of these resilience measures will also be incorporated into the planning and design stages of new developments. We believe that by doing this, we can ensure our assets will continue to be resilient under other future climate scenarios. Transition Risks and Opportunities Regarding the global transition to a low-carbon economy, in accordance with the TCFD’s recommendations, Swire Properties has developed three distinct and plausible climate change scenarios in order to stress test the resilience of its business and strategy to varying future operating environments. The scenarios used by Swire Properties have been informed by several publicly available climate scenarios from recognised authorities including the International Energy Agency (“IEA”), the Network for Greening the Financial System (“NGFS”) and the Intergovernmental Panel on Climate Change (“IPCC”) who developed the Shared Socio-Economic Pathways (“SSPs”). The scenarios incorporate global and local government policies, environmental, economic, social and technology indicators and market trends. The scenarios are not intended to be predictions of the future; rather, they seek to stress-test Swire Properties’ business against several plausible future states. The scenarios look at two time horizons (2030 and 2050) and include both global and region-specific (Hong Kong and the Chinese Mainland) indicators. Climate Scenario Analysis 1.5°C – Net-Zero World 2°C – Paris Consistent 3°C – Hot House World Scenario Scenario Scenario • RCP 1.9 • RCP 2.6 • RCP 6.0 • IEA Net-Zero by 2050 • IEA SDS • IEA Stated Policies Scenarios • NGFS Net-Zero 2050 • NGFS Below 2°C (STEPS) • SSP1 – Sustainability • Shared Socio-Economic • NGFS Current Policies Pathway – Sustainability • Shared Socio-Economic Pathway – Fossil-fuelled development SUSTAINABLE DEVELOPMENT REPORT 2022 232
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Governance Strategy Risk Management Metrics and Targets 1.5°C – Net-Zero World Scenario represents a world where global warming is limited to 1.5°C through stringent climate policies, innovation and demand-led change reaching global net-zero CO2 emissions around 2050. In addition to meeting all current net-zero pledges, additional pledges from countries are met and there is a significant increase in public and private investment into green technologies. The share of renewables in the global electricity supply increases to more than 60% by 203040 and there are much more stringent government policies such as stricter energy efficiency building codes and carbon taxes. This is reflected by a carbon price of USD162 per tonne of carbon41, which illustrates overall policy intensity. 2°C – Paris Consistent Scenario limits global warming to 2°C through gradually increasing the stringency of climate policies. All current net-zero pledges are achieved in full and there are extensive efforts to realise near-term emissions reductions. There is a comparatively moderate increase in public and private investment into green technologies and the share of renewables in the global electricity supply by 2030 increases to 49%42, shifting the economy from being fossil fuel driven to a renewable energy-driven economy. More stringent government policies such as stricter energy efficiency building codes and carbon taxes help the world achieve net-zero by 2070. The carbon price of USD52 per tonne of carbon4³, which illustrates overall policy intensity, shows less policy action compared with the 1.5°C world. 3°C – Hot House World Scenario represents a world where no additional action is taken above the current policies that are in place in 2022. Fossil fuel subsidies remain in place in the Chinese Mainland, there is insufficient technological investment in low-emission technologies and a continued reliance on carbon-intensive technologies to fuel growth. Consequently, the grid remains largely powered by coal and other non-renewable energy. The Paris Agreement fails and in the longer term many areas across the globe, including Hong Kong and the Chinese Mainland, experience a significant increase in extreme weather events over the second half of the century. The focus for stakeholders under this scenario is on adaptation as the world fails to transition to a low-carbon economy. These scenarios together represent balanced, science-based scenarios that offer a contrast between the best-case and worst-case scenarios for us to sufficiently consider the risks and opportunities posed by climate change that could potentially impact our business operations and our value chain. Swire Properties has identified climate-related risks and opportunities that could affect its business under the different scenarios, and they are outlined in the table below. The risk list was built through reviewing publications of international research organisations and peer companies, engagement with internal and external experts and stakeholders, and through our materiality assessment and extensive public domain research. 40 Net-Zero Emissions by 2050, International Energy Agency (2020), World Energy Outlook 2020, IEA, Paris, https://www.iea.org/ reports/world-energy-outlook-2020/achieving-net-zero-emissions-by-2050 41 IIASA NGFS Climate Scenarios Database, REMIND model, Carbon prices shown for the Chinese Mainland under NZ2050 Scenario https://data.ene.iiasa.ac.at/ngfs/#/workspaces/1989 42 Sustainable Development Scenario, International Energy Agency, 2020, Renewables, 2020, Paris https://www.iea.org/fuels- and-technologies/renewables 4³ IIASA NGFS Climate Scenarios Database, REMIND model, Carbon prices shown for the Chinese Mainland under Below 2 Degrees Scenario https://data.ene.iiasa.ac.at/ngfs/#/workspaces/1989 SUSTAINABLE DEVELOPMENT REPORT 2022 233
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Governance Strategy Risk Management Metrics and Targets Risk and Opportunity Drivers Potential Financial Impacts Policies and Regulations 1. Tightened building energy codes Increased capital investment and guidelines and expenditures to meet these requirements 2. Increased ambition of national Increased capital investment decarbonisation strategies and and expenditures to support roadmaps these strategies and concurrent energy efficiency programmes Decreased operating costs due to the improved energy efficiency of buildings 3. Introduction of carbon pricing in Increased expenditures for operating markets compliance 4. More stringent public disclosure Increased expenditures requirements for meeting these new requirements Need to attract green investment and diversify financing sources Market, Reputation and 1. Increased market demand for Increased revenue due to shift Liability climate-resilient properties in market preference 2. Increased market demand for Increased revenue due to green and energy-efficient potentially higher rental properties premiums for green buildings 3. Increased tenant demand for Increased revenue due to energy efficiency and data improved tenant satisfaction transparency and experience Lower operating costs due to improved energy efficiency 4. Growing investor demand for Attract green investment and green and low-carbon finance and diversify financing sources investment 5. Potential increase in insurance Increased expenditures due to premiums increased insurance premiums 6. Increased exposure to reputation Decreased revenue due to shifts and litigation risks in market preferences SUSTAINABLE DEVELOPMENT REPORT 2022 234
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Governance Strategy Risk Management Metrics and Targets Risk and Opportunity Drivers Potential Financial Impacts Supply Chain 1. Greater adoption of low-carbon Increased material procurement construction materials expenditures 2. Limited resource availability and Increased expenditures due to higher pricing higher energy costs Technology and 1. Increased adoption of green and Increased capital investments Innovation low-carbon technology in technology Decreased operating costs due to improved energy efficiency 2. Increased adoption of renewable Increased capital investment in energy renewable energy systems Increased revenue from selling generated renewable energy to power companies In 2022, Swire Properties undertook a prioritising exercise, via quantitative and qualitative assessments, to facilitate the most efficient allocation of resources to mitigate risks and capitalise on potential opportunities. With the support of a risk consultant, we facilitated workshops with nearly 50 cross-functional groups of managers to assess individual risks and opportunities from a broad and diverse perspective. For each risk and opportunity driver, these subject matter experts evaluated the vulnerability, current/planned practices and controls, adaptability and future risk exposure. Participants then debated the impact of the risk or opportunity on our financial performance (revenue and expenditures) and financial position (assets and liabilities and capital and financing) as well as the likelihood of the risk or opportunity impacting us under each climate scenario. For certain risks, the outputs from the workshop were fed into actuarial risk models to project what the potential impacts could be across different probabilities. Sensitivity analysis and risk modelling were employed to evaluate the uncertainty and volatility associated with the impact of individual risk and opportunity drivers. The evaluation also covered impacts across our value chain including our supply chain and procurement, construction activities, property management, tenant operations and engagement, property marketing and sales, and the retrofitting and refurbishment of buildings. Risks were assessed in line with our existing Enterprise Risk Management assessment scales to enable comparison of the significance of climate-related risks relative to other risks. SUSTAINABLE DEVELOPMENT REPORT 2022 235
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Governance Strategy Risk Management Metrics and Targets Heat map showing the estimated annual impact of climate-related risks and opportunities under different climate scenarios in 2030 Risks Opportunities Risk / Opportunity Driver 1.5°C 2°C 3°C 1.5°C 2°C 3°C Scenario Scenario Scenario Scenario Scenario Scenario Tightened building energy codes and guidelines Introduction of carbon pricing in operating markets More stringent public disclosure requirements Increased market demand for climate resilient properties Increased market demand for green and energy efficient properties Increased tenant demand for energy efficiency and data transparency Growing investor demand for green and low- carbon finance and investment Potential increase in insurance premiums Increased exposure to reputation and litigation risks Greater adoption of low-carbon construction materials Utility supply and cost Increased adoption of green and low-carbon technology Increased adoption of renewable energy Risk level Lower risk Moderate risk Higher risk Lower opportunity Moderate opportunity Higher opportunity Not applicable Analysis shows that our current business and sustainability strategies will allow us to effectively manage the identified transition risks and capture opportunities from the transition to a net-zero economy. These strategies include: • Our 1.5°C-aligned science-based targets to drive aggressive near-term decarbonisation across our global portfolio, paving the way to achieve net-zero emissions before 2050. • Investment in and development of certified green buildings with best-in-class energy efficiency and climate resilience. • Investment in renewable energy adoption throughout our portfolio. • Wide application of innovative green and low-carbon technologies. • Commitment to green financing. • Engaging our supply chain, tenants and relevant stakeholders in climate resilience and sustainability. SUSTAINABLE DEVELOPMENT REPORT 2022 236
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Governance Strategy Risk Management Metrics and Targets For future investments, we have integrated sustainability criteria into the due diligence risk assessment process for new acquisitions, including climate adaptation and resilience, flood risk assessment, energy efficiency and carbon emissions of the acquired assets. We have had a Business Recovery Plan in place since 1997 to ensure that we maintain critical crisis planning and execution capabilities in the event of major incidents, including extreme weather events. We have also put in place local crisis response plans for all portfolios. Through the ISO 14001 Environmental Management System and ISO 50001 Energy Management System, we manage our daily operational risks related to climate change, carbon and energy management. As at 31 December 2022, approximately 80% of our properties (measured by gross floor area) in Hong Kong and the Chinese Mainland are certified to the ISO 14001 Environmental Management System. SUSTAINABLE DEVELOPMENT REPORT 2022 237
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Governance Strategy Risk Management Metrics and Targets Metrics and Targets The metrics and targets used to assess and manage relevant climate-related risks and opportunities material to Swire Properties The table below provides key metrics related to the impacts of GHG emissions, energy and green building development on the financial aspects related to revenue, capital and financing, expenditures and assets. For our climate-related targets, please refer to the Climate Change section of this report. Financial Climate-related Metric Unit of 2019 2020 2021 2022 Category Category Measure Revenues Risk Adaptation Gross rental % >95% >98% >98% >97% and Mitigation income contributed by certified green buildings Capital and Risk Adaptation Proportion of % / ~30% ~30% ~ 60% Financing and Mitigation bond and loan facilities from green financing (includes green bonds, green loans and sustainability- linked loans) Capital and Risk Adaptation Three-year HKD / / / 3,159 Financing and Mitigation budget/forecast million expenditure for climate-related projects Expenditures Risk Adaptation Sustainable HKD 48 1,196 946 1,477 and Mitigation procurement million million million million spend Expenditures Risk Adaptation Expenditures HKD 31 19 17 /* and Mitigation on energy million million million efficiency/low- carbon projects supported by green bond proceeds Expenditures Risk Adaptation Expenditures HKD 2 million 1 million 3 million /* and Mitigation on renewable energy supported by green bond proceeds Expenditures Risk Adaptation Expenditures on HKD 3 million / 1 million /* and Mitigation sustainable water and wastewater management supported by green bond proceeds Expenditures Energy/Fuel Total energy GJ 1,312,767 1,215,434 1,247,638 1,248,636 consumption *No green bond and green loan were raised from 1st October 2021 to 31st December 2022. SUSTAINABLE DEVELOPMENT REPORT 2022 238
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Governance Strategy Risk Management Metrics and Targets Financial Climate-related Metric Unit of 2019 2020 2021 2022 Category Category Measure Expenditures Energy/Fuel Proportion % 13.2% 14.3% 19.0% 24.1% of electricity consumption from renewable sources 2 Expenditures Energy/Fuel Building electricity kWh/m/ 139 127 128 117 use intensity by year HK HK HK HK gross floor area Portfolio Portfolio Portfolio Portfolio 101 96 99 95 Chinese Chinese Chinese Chinese Mainland Mainland Mainland Mainland Portfolio Portfolio Portfolio Portfolio 237 204 195 179 U.S.A. U.S.A. U.S.A. U.S.A. Portfolio Portfolio Portfolio Portfolio Expenditures Energy/Fuel Carbon emissions Tonnes of 230,265 203,316 176,841 165,549 (Scope 1 and 2) CO e – market-based 2 method Expenditures Energy/Fuel Building carbon Tonnes of 0.109 0.103 0.088 0.079 intensity by gross CO 2 e/m / HK HK HK HK floor area 2 year Portfolio Portfolio Portfolio Portfolio 0.073 0.053 0.047 0.045 Chinese Chinese Chinese Chinese Mainland Mainland Mainland Mainland Portfolio Portfolio Portfolio Portfolio 0.109 0.085 0.081 0.069 U.S.A. U.S.A. U.S.A. U.S.A. Portfolio Portfolio Portfolio Portfolio Expenditures Energy/Fuel Carbon intensity Tonnes of 0.121 0.098 0.089 0.081 of tenants (Scope CO 2 e/m / 3 – downstream 2 year leased assets) Assets Risk Adaptation Percentage of % 97% 97% 96% 95% and Mitigation wholly-owned existing buildings which are certified green buildings Assets Risk Adaptation Percentage of % 100% 100% 100% 100% and Mitigation wholly-owned projects under development which are certified green buildings Assets Risk Adaptation Expenditures for HKD 733 669 1,502 /* and Mitigation green building million million million development supported by green bond and green loan proceeds *No green bond and green loan were raised from 1st October 2021 to 31st December 2022. SUSTAINABLE DEVELOPMENT REPORT 2022 239
wire Properties aims to deliver S sustainable economic performance coupled with good corporate governance and high ethical standards.
MENU PLACES PEOPLE PARTNERS PERFORMANCE PEPERFORFORRMMAANNCCEE (ENVIRONMENT) ((EECCONOONOMMIICC)) Performance (Economic) 2022 Progress Corporate Governance Risk Management and Internal Controls Green Financing Investor Relations Swire Properties aims to deliver sustainable economic performance coupled with good corporate governance and high ethical standards. Top Material Issues Corporate governance Long-term financial Risk management performance and value 2022 Progress This year, our Performance (Economic) Working Group, made up of 11 representatives from different functions within the Company, worked towards achieving our 2025 and 2030 KPIs in the focus areas under this Pillar: Financial Performance, Green Financing, Corporate Governance, Risk Management, and Disclosure and Communications. Swire Properties believes that communication is crucial to success; as such, we continued to engage with our investors at various events to keep them informed about our SD journey and our performance. In 2022, we introduced the Anti-Bribery and Corruption Policy, Remuneration Policy and Shareholders’ Communication Policy. The Anti-Bribery and Corruption Policy sets out the standard of behaviour expected from our operations and associated persons working for or on behalf of Swire Properties around offering or accepting advantages, conduct to be observed when making donations or sponsorships to charitable organisations and channels to report potential misconduct. The Remuneration Policy is developed to ensure our employees receive fair and competitive compensation programmes to attract, motivate, retain and reward employees at all levels, including our Executive Directors and senior management. The Shareholders’ Communication Policy sets out the framework to promote effective communication with our shareholders, to enable them to exercise their shareholder rights in an informed manner, and to allow the investment community to engage actively with Swire Properties. We also reviewed our Corporate Code of Conduct in 2022 to reflect various policy updates. Our Whistleblowing Policy was also revised in the same year increasing transparency around report investigations procedure and updates around policy governance. Our progress this year is summarised in the table below. SUSTAINABLE DEVELOPMENT REPORT 2022 241
MENU PLACES PEOPLE PARTNERS PERFORMANCE PEPERFORFORRMMAANNCCEE (ENVIRONMENT) ((EECCONOONOMMIICC)) Performance (Economic) 2022 Progress Corporate Governance Risk Management and Internal Controls Green Financing Investor Relations Progress Summary Table Financial Performance Underlying Profit | Dividends | Gearing Ratio and Credit Rating Progress Updates in 2022 • Details of our financial performance for the year ended 31 December 2022 are available in the Swire Properties Annual Report 2022. Green Financing Green Bonds 2025 KPI Progress Updates in 2022 50% of bond • As at the end of 2022, approximately • Achieve a minimum of 60% of our current bond and loan and loan facilities from green financing facilities came from green financing. • For more details, see our latest Green Finance Report 2022, published in March 2023. SUSTAINABLE DEVELOPMENT REPORT 2022 242
MENU PLACES PEOPLE PARTNERS PERFORMANCE PEPERFORFORRMMAANNCCEE (ENVIRONMENT) ((EECCONOONOMMIICC)) Performance (Economic) 2022 Progress Corporate Governance Risk Management and Internal Controls Green Financing Investor Relations Corporate Governance Anti-bribery and Anti-corruption 2025 KPI Progress Updates in 2022 • Annual bribery and corruption risk review • An anti-bribery questionnaire covering the by the Executive Committee (“EXCOM”) 2022 reporting period has been submitted to EXCOM for review. Executive Compensation 2025 KPI Progress Updates in 2022 • Establish corporate SD performance • The Chief Executive’s variable metrics that are linked to the Chief compensation is linked to health and Executive’s variable compensation safety performance targets. Board Diversity 2025 KPI Progress Updates in 2022 • Maintain no less than 30% female • 31% of our Board positions are held by representation on the Board female members. SUSTAINABLE DEVELOPMENT REPORT 2022 243
MENU PLACES PEOPLE PARTNERS PERFORMANCE PEPERFORFORRMMAANNCCEE (ENVIRONMENT) ((EECCONOONOMMIICC)) Performance (Economic) 2022 Progress Corporate Governance Risk Management and Internal Controls Green Financing Investor Relations Corporate Governance GRI Swire Properties is committed to conducting our affairs in accordance with high ethical standards. This 2-9, 2-11, 2-12, 2-13, 2-16, 2-19, reflects our belief that it is imperative to act with probity, transparency and accountability in order to 2-20, 2-23, 2-24 achieve our long-term objectives of maximising shareholder value, while focusing on sustainable development to preserve the environment and promote the interests of our employees, those with whom we do business and the communities in which we operate. Our Board is committed to maintaining and developing robust corporate governance practices that are intended to ensure: • Satisfactory and sustainable returns to our shareholders. • That the interests of those who deal with the Company are safeguarded. • That we operate in an environmentally, socially and economically responsible manner across all aspects of our business. • That overall business risks are understood and managed appropriately. • The delivery of high-quality products and services to the satisfaction of our customers. • That high standards of ethics are maintained. Our Chairman is responsible for ensuring, through the Board, that good corporate governance practices and procedures are followed. Our Audit Committee, consisting of three Non-Executive Directors, is responsible for assisting the Board in discharging its responsibilities for corporate governance. Our Executive Committee, which is chaired by the Chief Executive and comprises three Executive Directors and eight members of senior management, is responsible for overseeing the day-to-day operations of the Company. For more information on Corporate Governance, please refer to the Swire Properties Annual Report 2022. SUSTAINABLE DEVELOPMENT REPORT 2022 244
MENU PLACES PEOPLE PARTNERS PERFORMANCE PEPERFORFORRMMAANNCCEE (ENVIRONMENT) ((EECCONOONOMMIICC)) Performance (Economic) 2022 Progress Corporate Governance Risk Management and Internal Controls Green Financing Investor Relations Ethics Corporate Code of Conduct GRI Our Corporate Code of Conduct (“the Code”) applies to every employee, officer and director of the 2-15, 406 Company and its subsidiaries. It sets out the operating principles underpinning our management HKEX approaches to a range of issues, including: KPI B7.2 • Business ethics • Use of Company information and property • Conflicts of interest • Whistleblowing • Competition and antitrust • Health and safety • Bribery • Environment • Political contributions • Equal opportunities and diversity • Gambling • Use of social media • Procurement • Privacy • Record-keeping In 2022, we conducted a review of our Code to reflect various latest policy development (e.g. Anti-Bribery and Corruption Policy). Detailed guidance was provided around the acceptance of festive or special occasion gifts, entertainment, hospitality or travel. Under the Code, all our employees have a responsibility to report concerns about any suspected or actual improprieties relating to the Company and/or its subsidiaries. Employees found to be in breach of the Code will be subject to disciplinary action. In 2022, there were no reported cases of breaches of the Code. As part of the annual employee performance and development review process, all employees are required to sign a statement on an annual basis in agreement to undertake and regularly review the Code. SUSTAINABLE DEVELOPMENT REPORT 2022 245
MENU PLACES PEOPLE PARTNERS PERFORMANCE PEPERFORFORRMMAANNCCEE (ENVIRONMENT) ((EECCONOONOMMIICC)) Performance (Economic) 2022 Progress Corporate Governance Risk Management and Internal Controls Green Financing Investor Relations Whistleblowing Policy GRI Our Whistleblowing Policy sets out our policy on whistleblowing, including the protection of 2-26 whistleblowers from reprisal or disadvantage. HKEX KPI B7.2 If an employee wishes to report concerns, they contact either our human resources and administration department, their immediate supervisor, or the Swire Group internal audit department (“GIAD”); or make a report through our whistleblowing platform – this is hosted by a third-party service provider and includes a 24-hour hotline service. Third parties that deal with Swire Properties, such as customers and suppliers, are also encouraged to report their concerns either directly to GIAD or via the whistleblowing platform. Anonymous reports may be submitted. We also ensure that our contractors are aware of our Whistleblowing Policy and the different reporting platforms that are available to them. The policy was reviewed in 2022, increasing transparency around report investigations procedure and updates around policy governance. Reports and complaints made shall be retained for a period of not more than seven years, following the completion of investigation or closure of the matter. The review of the policy is placed under the Terms of Reference of Swire Properties’ Audit Committee. In 2022, we received a total of 27 whistleblowing reports, 23 cases were related to operational issues , and the rest were related to the Code. All the whistleblowing cases have been evaluated and fully resolved. We are committed to the fair treatment of any person who makes a genuine and appropriate report. In addition to making every effort to keep the identity of whistleblowers confidential, all reported information is treated in confidence, except where Swire Properties is required by law or regulation to disclose it, for legal or audit purposes, or where Swire Properties refers the matter to the relevant regulators or law enforcement authorities. SUSTAINABLE DEVELOPMENT REPORT 2022 246
MENU PLACES PEOPLE PARTNERS PERFORMANCE PEPERFORFORRMMAANNCCEE (ENVIRONMENT) ((EECCONOONOMMIICC)) Performance (Economic) 2022 Progress Corporate Governance Risk Management and Internal Controls Green Financing Investor Relations Anti-Bribery and Corruption Policy and Practices GRI Swire Properties believes that conducting business with integrity is critical to its success as a sustainable 205 and responsible business group. We are committed to ensuring compliance with anti-bribery and HKEX corruption laws and regulations in our corporate governance. Aspect B7 KPI B7.1, B7.2, B7.3 We have procedures in place to monitor and report on related issues, preventing and actively managing possible violations against the law and related governing policies such as our Code. In 2022, we introduced the Anti-Bribery and Corruption Policy. It sets out the standard of behaviour expected from Swire Properties and the compliance procedures to be adopted. The policy applies to Swire Properties’ operations (including its subsidiaries), associated persons working for or on behalf of Swire Properties, as well as any actions taken on Swire Properties’ behalf. Our employees or associated persons are not permitted to offer or accept advantages for the purpose of influencing business decisions, which can include cash, loans, gifts, entertainment, hospitality, or travel. To prevent misconduct, all gifts (including in the form of cash), entertainment, hospitality and travel must be recorded fairly and accurately in a register maintained by the relevant business or functional unit. Any request for facilitation payment or kickbacks must be reported to the Director, Human Resources as soon as possible. No personnel or associated persons shall make or accept, directly or indirectly, facilitation payments or kickbacks of any kind. To avoid the perception of improper conduct, our employees are expected to exercise caution when making or soliciting contributions to charitable causes and when providing entertainment and corporate hospitality or reimbursing bona fide expenses for legitimate business purposes. In 2022, there were no concluded legal cases regarding corrupt practices brought against the Company or its employees. All charitable donations by Swire Properties should be authorised by the Chief Executive. While making sponsorships, our employees or associated persons must record fairly and accurately all sponsorship items in a register maintained by the relevant business or functional unit. The policy prohibits Swire Properties, including our employees or associated persons to make any direct political contributions (in cash or in kind) on behalf of Swire Properties. All our employees are required to confirm on an annual basis that they have read and have agreed to be bound by the Code, which includes our anti-bribery practices. It is compulsory for our employees in Hong Kong and the Chinese Mainland (including those who have been seconded to other offices) to receive anti-bribery refresher training on an annual basis at minimum. In 2022, approximately 8,690 hours of anti-bribery-related training was provided to employees across the Company. We provide channels for our employees and stakeholders to report on instances of actual or suspected bribery, corruption or non-compliance. In 2022, there were no convicted cases of anti-bribery and corruption. SUSTAINABLE DEVELOPMENT REPORT 2022 247
MENU PLACES PEOPLE PARTNERS PERFORMANCE PEPERFORFORRMMAANNCCEE (ENVIRONMENT) ((EECCONOONOMMIICC)) Performance (Economic) 2022 Progress Corporate Governance Risk Management and Internal Controls Green Financing Investor Relations Remuneration Policy HKEX Swire Properties is committed to providing fair and competitive staff compensation programmes that will Aspect B1 attract, motivate, retain and reward employees at all levels, including our Executive Directors and senior management. The Remuneration Policy documents key remuneration principles developed to support the Company’s strategy and is aligned with the Company’s corporate values. This policy ensures that the Company has a consistent, transparent and clear approach to remuneration considerations. The policy is founded on the following key principles: • That compensation is competitive in the market. • That pay is based on individual performance. • Equity and fairness in pay. • Transparency of employee performance. • The Company’s affordability. • The Company’s financial and individual performance. • Options for pension scheme are provided as part of retirement benefits. The Remuneration Committee reviews and approves the remuneration proposals with respect to our Executive Directors and senior management, with reference to the Remuneration Policy and the Board’s corporate goals and objectives. The remuneration proposals of our Executive Directors and senior management will be reviewed annually, based on market data and peer comparison prepared by independent external consultants. No Executive Director or senior management takes part in any discussion about his or her own remuneration. The remunerations of individual Executive Directors and senior management by band is disclosed in the Annual Report of the Company. SUSTAINABLE DEVELOPMENT REPORT 2022 248
MENU PLACES PEOPLE PARTNERS PERFORMANCE PEPERFORFORRMMAANNCCEE (ENVIRONMENT) ((EECCONOONOMMIICC)) Performance (Economic) 2022 Progress Corporate Governance Risk Management and Internal Controls Green Financing Investor Relations Product Responsibility HKEX We are committed to ensuring that our marketing and communications materials comply with the Aspect B6 relevant government regulations and industry guidelines, including the Residential Properties (First- KPI B6.3, B6.5 hand Sales) Ordinance in Hong Kong and the Consent Scheme of the Hong Kong Lands Department. We respect property rights, including intellectual property rights, and require our employees to comply with applicable legal requirements relating to the collection, holding, processing, disclosure, and use of personal data, and to respect the privacy of others and the confidentiality of information received in the course of our business operations. Please refer to the Partners section of this report for information about our Privacy Policy. Competition Law GRI We are committed to complying with all applicable competition and antitrust laws, including the 206 Competition Ordinance in Hong Kong. To help our employees understand the legal requirements of the Competition Ordinance in Hong Kong, we have guidelines in place on conducting dealings with competitors and third parties, avoiding the abuse of market power and participating in trade associations and industry bodies. We have also developed and implemented a Competition Law e-training programme for our relevant Hong Kong and Chinese Mainland employees. In 2022, there were no legal actions related to anti-competitive behaviour brought against Swire Properties. SUSTAINABLE DEVELOPMENT REPORT 2022 249
MENU PLACES PEOPLE PARTNERS PERFORMANCE PEPERFORFORRMMAANNCCEE (ENVIRONMENT) ((EECCONOONOMMIICC)) Performance (Economic) 2022 Progress Corporate Governance Risk Management and Internal Controls Green Financing Investor Relations Information and Cyber Security GRI Under our risk management framework, the Board and management are responsible for identifying and 418 analysing the risks related to information and cyber security, and for determining how such risks should be managed and mitigated. We are committed to conducting regular audits to ensure compliance with our Information and Cyber Security Policy and Privacy Policy. The two policies include guidelines on data management and protection for implementation in Swire Properties. Our cyber security framework is aligned with National Institute of Standards and Technology (“NIST”), and we regularly conduct independent information security governance assessments to identify opportunities for improvement. We also have a cyber incident response plan in place that outlines clear procedures and guidance for handling cyber security incidents and that addresses potential threats from cyber attacks that may disrupt our business. Scenario-based paper drills are conducted every year to serve for continuous awareness training purposes. In terms of compliance certification, in view of the increasing importance of and demand for privacy data security management, Swire Properties obtained an ISO 27701 certification extension, on top of our existing ISO 27001 certification, covering all managed sites in Hong Kong, the Chinese Mainland and the U.S.A. Completed in late 2022, we continued to prioritise continuous governance and control over the handling of personal data and sensitive information so as to minimise our risk exposure. This year, we also formed our Digital Project Governance (“DPG”) Working Group. Comprised of representatives from our IT operations, information security and enterprise architect teams, the DPG Working Group manages digital projects to ensure they have undergone architecture design and security reviews, penetration tests and privacy impact assessments. We regularly implement comprehensive information security and cyber security awareness training for our employees. In 2022, we offered 8,520 hours of such training. This year, we also initiated an updated awareness programme to ensure that staff understand key concepts relating to information security. All staff were required to participate in the Information Security E-learning Programme 2022. In addition, a legal seminar on information security called “Cybersecurity and Data Privacy Regulation in Asia-Pacific” was held in September, covering important concepts like the history and current state of data privacy regulation in Asia Pacific, cyber security regulation, data privacy versus data security, and cyber attacks and incident response. SUSTAINABLE DEVELOPMENT REPORT 2022 250
MENU PLACES PEOPLE PARTNERS PERFORMANCE PEPERFORFORRMMAANNCCEE (ENVIRONMENT) ((EECCONOONOMMIICC)) Performance (Economic) 2022 Progress Corporate Governance Risk Management and Internal Controls Green Financing Investor Relations Risk Management and Internal Controls GRI The Board is responsible for evaluating and determining the nature and extent of the risks it is willing to 2-12, 201, 403 take in achieving the Company’s strategic objectives and for ensuring that the Company establishes and maintains appropriate and effective risk management and internal control systems. The Board and management are responsible for identifying and analysing the risks underlying the achievement of business objectives, and for determining how such risks should be managed and mitigated. The Board oversees management in the design, implementation and monitoring of the risk management and internal control systems, and management provides confirmations to the Board on the effectiveness of these systems. The management of risks is subject to audit by GIAD, with support from specialist external consultants where necessary. The following diagram illustrates the key risk management processes of the Company. Risks that impact the achievement of business objectives are identified by management and categorised with reference to a risk taxonomy. Risk Identification Adequacy and effectiveness of Impact of the identified risks and risk management and internal Risk Risk vulnerability of the entity to the controls are closely monitored Monitoring Analysis risks are evaluated to determine by management through regular the risk level. review exercise. Risk Risk Reporting Mitigation Risks are regularly reviewed and Internal control procedures and reported to the Audit Committee response protocols are designed, and other relevant governing documented and implemented parties. to manage the risks and mitigate their impact. SUSTAINABLE DEVELOPMENT REPORT 2022 251
MENU PLACES PEOPLE PARTNERS PERFORMANCE PEPERFORFORRMMAANNCCEE (ENVIRONMENT) ((EECCONOONOMMIICC)) Performance (Economic) 2022 Progress Corporate Governance Risk Management and Internal Controls Green Financing Investor Relations Executive Committee GRI The Executive Committee meets twice a month and is responsible for overseeing the day-to-day 2-12, 201, 403 operations of the Company. It comprises three Executive Directors and eight members of senior management. The Chief Executive chairs the Executive Committee. The Executive Committee provides oversight of all the risks to which the Group is subject and is responsible for the design, implementation and monitoring of the relevant risk management and internal control systems of the Group. Matters of significance that arise are reported as appropriate via the Audit Committee to the Board of Directors. Risk Governance Framework Board of Directors Audit Committee r o t i Senior Management/Executive Committee d u A nal er t x SD 2030 SD 2030 E / r SD 2030 People SD 2030 Partners Performance Performance o t i Working Group Working Group (Environment) (Economic) d Finance u Working Group Working Group A Business Department l Units (Internal na Safety er Control) Safety Working t n Management Group (Chinese Environmental Business I System Steering Mainland) Committee Recovery Team Committee (HK) SUSTAINABLE DEVELOPMENT REPORT 2022 252
MENU PLACES PEOPLE PARTNERS PERFORMANCE PEPERFORFORRMMAANNCCEE (ENVIRONMENT) ((EECCONOONOMMIICC)) Performance (Economic) 2022 Progress Corporate Governance Risk Management and Internal Controls Green Financing Investor Relations Continuously Reviewing our ERM System Our Enterprise Risk Management (“ERM”) system helps us identify, analyse and manage business risks. Risk identification, analysis and management processes are completed on a regular basis throughout the year and the results help to guide our business decisions. Our Corporate Risk Register ("CRR") incorporates ESG-related risks, such as climate-related risks. We have also integrated SD factors into our corporate risk analysis. In 2022, we started our journey to digitalise our CRR dashboard and risk scoring model. The new digitalised CRR platform offers a standard template for updating risk details, risk scoring and risk mitigating measures. With this new digitalised platform, benchmarking across Swire Group will become easier. In the next phase, we plan to optimise the system and the reporting protocol. Swire Properties’ management will also continue to monitor and conduct regular reviews of risks and the effectiveness of mitigation strategies. External risk advisors will regularly be consulted for their risk management experience, allowing us to keep abreast of the industry best practices. Risk Profile The following table provides an overview of our risk profile (listed in alphabetical order), including what we consider to be Swire Properties’ principal existing and emerging risks, possible associated impacts, risk trend and mitigation measures that are in place or under development. Existing Risks and Possible Impacts Risk Trend Mitigation Measures Brand and image • Crisis communication and social media policies The failure to maintain brand position are in place and are updated and tested regularly and perception may make us less to ensure consistent, responsible and responsive competitive. communication (including when handling major incidents) in order to safeguard the Company’s reputation. • Closely monitor social media in order to evaluate and provide responses to negative social media content. • Engagement with third parties to understand their perceptions of the Company and to anticipate current and potential economic, political, social or environmental issues that may adversely affect our reputation. SUSTAINABLE DEVELOPMENT REPORT 2022 253
MENU PLACES PEOPLE PARTNERS PERFORMANCE PEPERFORFORRMMAANNCCEE (ENVIRONMENT) ((EECCONOONOMMIICC)) Performance (Economic) 2022 Progress Corporate Governance Risk Management and Internal Controls Green Financing Investor Relations Existing Risks and Possible Impacts Risk Trend Mitigation Measures Business disruption • A business recovery plan for major incidents, and Severe disruption to the business caused other business compliance measures for specific by acts of man or acts of nature may scenarios, operational emergencies and health and have adverse financial effects on the safety, are in place and are regularly updated and Company. tested. • In response to pandemic, standard operating procedures and guidelines are in place, ensuring intensive cleaning and disinfection of our premises. Government’s requirements and guidelines on pandemic or social distancing are strictly observed. • Strategic plans are regularly reviewed to maintain business resilience and sustainability. • Conduct site surveys and consult professional advisors to ensure properties in earthquake and hurricane zones are built to meet the relevant building codes and safety standards. • Purchase insurance to the extent practicable to cover financial loss due to property damage, business interruption and third-party liabilities. Business risks • Obtain suitable reserves of land, reinforce The lack of compelling development existing assets and actively explore investment projects and business disruption may opportunities. lead to a slowdown in business and so • Monitor and evaluate disruptive business models, affect financial performance. with a view to making our operations more robust. • Enhance competitiveness by increasing efficiency, using appropriate technology and operational procedures. Development risks • Closely work with contractors to monitor and Delay in the completion of manage construction progress in order to avoid developments may have an adverse delays. financial effect by delaying the timing of • Stringent contractor prequalification requirements property sales and leasing. and stringent requirements for approving design changes. • Build in contingencies for statutory approvals and communicate with government authorities on a timely basis. SUSTAINABLE DEVELOPMENT REPORT 2022 254
MENU PLACES PEOPLE PARTNERS PERFORMANCE PEPERFORFORRMMAANNCCEE (ENVIRONMENT) ((EECCONOONOMMIICC)) Performance (Economic) 2022 Progress Corporate Governance Risk Management and Internal Controls Green Financing Investor Relations Existing Risks and Possible Impacts Risk Trend Mitigation Measures Political risks • Regular review of investment strategy, business Changes in the global and local political model and capital allocation in response to any landscape and priorities may have impact of international tensions. significant impact on the business • Maintain high level of sensitivities to political and environment. social issues by closely monitoring social media and government policies with a timely response. • Senior management engagement with government authorities to anticipate political developments in order to plan appropriate responses and to ensure compliance with applicable laws and regulations. • Maintain robust corporate governance practice through oversight functions (internal audit, risk management, the company secretary, legal counsel and independent non-executive directors). Emerging Risks and Possible Impacts Risk Trend Mitigation Measures Climate change • A climate change policy is in place and is updated Extreme weather conditions and regularly. climate change may increase the risks • Conduct climate risk assessments at all portfolios to of physical damage to properties and manage the risks and to explore the opportunities adversely affect their valuation. arising from the transition to a target of net-zero. • Science-based targets have been established to achieve long-term decarbonisation. • Monitor and reduce carbon emissions from construction activities and embodied carbon from major building and construction materials with the use of innovative technologies. Risk level increased during the year 2022 Risk level decreased during the year 2022 Risk level remained broadly the same SUSTAINABLE DEVELOPMENT REPORT 2022 255
MENU PLACES PEOPLE PARTNERS PERFORMANCE PEPERFORFORRMMAANNCCEE (ENVIRONMENT) ((EECCONOONOMMIICC)) Performance (Economic) 2022 Progress Corporate Governance Risk Management and Internal Controls Green Financing Investor Relations Green Financing We are committed to integrating sustainability considerations into our financing mechanisms. By obtaining green financing through green bonds, green loans and sustainability-linked loans, we not only support the transition to a low-carbon, more resource-efficient and sustainable economy, we also reaffirm our commitment to sustainable development, and to designing and developing sustainable projects that improve the wellbeing of building occupants and local communities. We have targeted to achieving a minimum of 50% of bond and loan facilities from green financing by 2025 and 80% by 2030. Green Bond Proceeds The issuance of our first green bond in January 2018 symbolised Swire Properties’ deep and ongoing commitment to SD. The bond raised USD500 million at a coupon rate of 3.5% and is due in 2028. In 2020, our commitment deepened further, with the issuance of four more green bonds totalling HKD1,934 million. As at 31 December 2022, 100% of the net proceeds from these green bonds have been fully utilised. Together with the green loan, the proceeds have been allocated to the following green projects: HKD 5,891 million (96.5%) Allocation of Green Buildings HKD 183 million (3.0%) Green Bonds and Energy Efficiency Green Loan Renewable Energy HKD 17 million (0.3%) Proceeds (As at 31st Sustainable Water and December 2022) Wastewater Management HKD 12 million (0.2%) We issued our Green Finance Report 2022 in March 2023 which provides information on the green projects funded by our green bonds and green loan and the estimated quantitative environmental impact, including energy and water saving, renewable energy generations and wastewater management practices, among others. SUSTAINABLE DEVELOPMENT REPORT 2022 256
MENU PLACES PEOPLE PARTNERS PERFORMANCE PEPERFORFORRMMAANNCCEE (ENVIRONMENT) ((EECCONOONOMMIICC)) Performance (Economic) 2022 Progress Corporate Governance Risk Management and Internal Controls Green Financing Investor Relations Green and Sustainability-Linked Financing In 2022, nine sustainability-linked loan facilities totalling HKD11.8 billion were arranged. As of 31 December 2022, approximately 60% of our current bond and loan facilities came from green financing. Swire Properties has received a reduction in the interest rates for our signed sustainability-linked loans by achieving predetermined sustainability-linked performance targets. Swire Pacific SD Fund Accelerates SD Projects Swire Properties continues to receive financing from the Swire Pacific SD Fund (“SD Fund”), which was established to support and accelerate SD projects to improve sustainability performance through innovative technologies. Several projects applied for the SD Fund in 2022, these included: • Swire Hotels’ Cloud-based Smart Energy Management Platform. • Water treatment technology for cooling towers designed to reduce water and electricity consumption. • Smart personalised air conditioning controls to enhance personal thermal comfort in offices thus reducing cooling demand and lowering electricity consumption. SUSTAINABLE DEVELOPMENT REPORT 2022 257
MENU PLACES PEOPLE PARTNERS PERFORMANCE PEPERFORFORRMMAANNCCEE (ENVIRONMENT) ((EECCONOONOMMIICC)) Performance (Economic) 2022 Progress Corporate Governance Risk Management and Internal Controls Green Financing Investor Relations Investor Relations Swire Properties believes in keeping our investors properly informed of our operations and plans, and in being transparent and proactively communicating with them about all matters, both financial and those related to sustainability. Shareholders’ Communication Policy We believe that promoting and maintaining effective communication can enhance long-term shareholder value and maintain trust and confidence with our shareholders. The Shareholders’ Communication Policy was developed with the aims to ensure that our shareholders and investment community are provided with appropriate and timely access to material information about our Company and our subsidiaries. The Company commits to maintain regular dialogue with our shareholders and the investment community through channels such as the Company’s financial reports (interim and annual reports), sustainable development reports, circular and annual general meetings. Information of the Company (which can include corporate information, press releases, financial reports, results announcements, sustainable development reports, circulars and notice of general meetings, constitutional documents etc.) will be made available on the website of the Company and Hong Kong Exchanges and Clearing Limited (“HKEx”). Shareholders can access the information of the Company in both English and Chinese versions to facilitate shareholders’ understanding. The Audit Committee is responsible for reviewing this policy, recommending changes and addressing issues of concern. Keeping our Investors Updated and Informed Since 2019, we have held ESG update sessions specifically for investors and analysts. Due to pandemic- related restrictions, instead of in-person events, we have held webinars for our debt and equity investors since mid-2020. These have been attended by 120 investors and analysts in total. At these webinars, senior management provides updates on the company’s latest developments and sustainability-related achievements. A similar situation prevailed in 2022. We held an ESG webinar in June, sharing the Company’s latest sustainable development updates and including a comprehensive question-and-answer session. The webinar kept investors up to date on our sustainable development strategy and achievements, our performance on various SD indices and updates broken down by the pillars of our SD Strategy, while the question-and-answer session allowed us to maintain a transparent, open dialogue with our investors. SUSTAINABLE DEVELOPMENT REPORT 2022 258
Building on our achievements since the launch of the SD 2030 Strategy in 2016, we are in a good position to advance to our next targets for 2025 and 2030.
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) 2025 and 2030 Targets Performance HKEX (Environment) KPI A1.5, A1.6, A2.3, A2.4, A3.1, A4.1 Building on our achievements since the launch of the SD 2030 DIVERSITY AND INCLUSION CLIMATE CHANGE RESOURCE AND CIRCULARITY BUILDING/ASSET INVESTMENT Strategy in 2016, we are in a good position to advance to our next targets for 2025 and 2030. These new targets are challenging Policy, Strategy and Governance Decarbonisation Resource Recycling and Waste Diversion Environmental Building Assessment Schemes58 and will require innovation, creative thinking and considerable 2025 KPIs 2030 KPIs 2025 KPIs 2030 KPIs Waste Diversion Rates 2025 KPIs 2030 KPIs effort as we strive to achieve our SD vision: to be the leading • Maintain a female • Operational GHG • Operational GHG 2025 KPIs 2030 KPIs • 100% of wholly-owned • 100% of wholly- sustainable development performer in our industry globally by representation of no Emissions (Scope 1 and Emissions (Scope 1 and Hong Kong portfolio54 Hong Kong portfolio54 new development owned new and existing 2030. less than 40% in the 2 SBT): Reduce absolute 2 SBT): Reduce absolute • 30% of commercial • 50% of commercial projects59 to achieve the developments59 to workforce GHG emissions by GHG emissions by waste waste highest environmental achieve the highest 50 50 • Maintain a gender • Maintain a gender 25% 46% Hong Kong (projects Hong Kong (projects building assessment environmental building balance in senior balance in senior • Value Chain Emissions under development) under development) scheme rating assessment scheme management management (Scope 3 SBT – • 85% of demolition • 90% of demolition • 90% of wholly-owned rating People • Maintain gender pay • Maintain gender pay Downstream Leased waste waste existing developments59 ratio at 1 : 1 ratio at 1 : 1 Assets): Reduce • 70% of construction • 75% of construction to achieve the highest TALENT ATTRACTION carbon intensity from waste waste environmental building the tenant-controlled Chinese Mainland Chinese Mainland assessment scheme Employer Branding portion of downstream (projects under (projects under rating 2025 KPIs leased assets by 28% development)55 development)55 44 Partners per square metre51 • 50% of total waste • 60% of total waste • Improve employee Net Promoter Score by 10% • Value Chain Emissions (Scope 3 SBT – Capital Waste Recycling Rates TALENT MANAGEMENT SUPPLIERS Goods): Reduce 2025 KPIs 2030 KPIs Learning and Development Monitoring (Compliance) embodied carbon Chinese Mainland Chinese Mainland portfolio56 portfolio56 2025 KPIs 2025 KPIs 2030 KPIs intensity from new • 40% of commercial • 45% of commercial Performance • A 25% increase in training hours per employees per • Maintain 100% • Maintain 100% development projects waste waste (Economic) year45 implementation of implementation of by 25% per square the Supplier Code of the Supplier Code of metre (construction WATER SUSTAINABLE AND GREEN FINANCING Engagement Conduct in all portfolios Conduct in all portfolios floor area)52 Water Reduction External Financing 2025 KPIs Driving Impact 2025 KPIs 2025 KPIs 2030 KPIs • Achieve an employee engagement index rating at Hong Kong • Achieve a minimum of • Achieve a minimum of 90% or above 2025 KPIs 3 2 50% of bond and loan 80% of bond and loan • Improve turnover rate by 5.5%46 • 10% reduction in water intensity (m /m )57 • 25% of products and services purchased for wholly- ENERGY Chinese Mainland facilities from green facilities from green owned new and existing investment portfolios shall financing financing 3 2 be sustainable Energy Reduction5³ • 20% reduction in water intensity (m /m )57 OCCUPATIONAL HEALTH AND SAFETY Contractors Health and Safety 2025 KPIs 2030 KPIs Hotels Hong Kong Portfolio54 Hong Kong Portfolio54 • 8% reduction in water intensity (m3/guest night)57 Safety 2025 KPIs 2030 KPIs • Reduction of electricity • Reduction of electricity • Reduce 5-year rolling • Reduce 5-year rolling use intensity by 20%50 use intensity by 40%50 BIODIVERSITY CORPORATE GOVERNANCE 2025 KPIs 2030 KPIs average of accident rate average of accident rate Integration • Maintain a LTIR at or per 1,000 contractor per 1,000 contractor Chinese Mainland Chinese Mainland Anti-bribery & Anti-corruption below 1.2 for non-hotel workers48 in our Hong workers48 in our Hong Portfolio55 Portfolio55 2025 KPIs 2025 KPIs operations; and at or Kong development Kong development • Reduction of electricity • Reduction of electricity • Conduct biodiversity surveys in 50% of new • Annual bribery and corruption risk review by below 2.0 for hotel 50% projects by 70% use intensity by 13%50 use intensity by 35%50 development projects Executive Committee projects by operations • Implement guidelines to integrate biodiversity Executive Compensation • Maintain zero work- • Maintain zero work- Renewable Energy considerations into new developments related fatalities and related fatalities and TENANT 2025 KPIs zero serious incidents47 zero serious incidents47 2025 KPIs OCCUPANT WELLBEING • Establish corporate SD performance metrics that are for employees for employees and Tenant Engagement • Generate 4-6% of landlord’s building energy Indoor Air Quality Management linked to the Chief Executive’s variable compensation contractors 2025 KPIs from on-site renewable or clean energy sources for Board Diversity • 50% of office tenants in wholly-owned portfolios49 selected newly completed office projects 2025 KPIs • For common areas, 90% of buildings achieve 2025 KPIs sign the Green Performance Pledge to jointly IAQ Excellent Class in the Hong Kong portfolio54 • Maintain no less than 30% of female representation improve environmental performance by 2025 or the local IAQ standard in the Chinese Mainland on the Board portfolio55 44 Compared to the 2020 baseline. 50 Compared to the 2019 baseline. 55 Our Chinese Mainland portfolio refers to our office and retail portfolio and hotels in the Chinese Mainland. 45 Compared to the 2016 baseline. 51 Compared to the 2018 baseline. 56 The waste diversion rate from landfill for Chinese Mainland projects under development is calculated in accordance with LEED requirements. Flexibility 46 Compared to the 2018 baseline. 52 Compared to the 2016-2018 baseline. will be allowed for projects not wholly-owned by the Company, and for projects with major contractor(s) already on board. 47 “Serious incident” is defined in the Swire Pacific Fatal and Serious Incident Reporting Policy. 53 The 2025 KPIs under Energy have been updated per our approved 1.5°C-aligned SBT. Energy Use Intensity has been renamed to 57 For our Hong Kong portfolio and Chinese Mainland portfolio, the water intensity reduction targets are compared to a 2016 BAU baseline year. For 48 Using 2015-2019 (5-year average) as baseline. Accidental rate represents the number of reportable accidents per 1,000 contractor workers. “Electricity Use Intensity” in 2022 to reflect the use of electricity for the provision of shared services for and in the common parts of our Hotels, the water intensity reduction targets set is compared to a 2018/2019 baseline year. It is calculated as the total number of reportable accidents multiplied by 1,000 and then divided by average daily number of contractor buildings. The actual scope of this KPI remains unchanged. 58 BEAM Plus/LEED/China Green Building Label/WELL Certification; the most suitable environmental building assessment scheme is selected based on workers on-site. 54 Our Hong Kong portfolio refers to our office and retail portfolio and hotels in Hong Kong. the project location. 49 Measured by occupied lettable floor area (“LFA”) of wholly-owned office portfolios, which are Taikoo Place and Pacific Place in Hong Kong 59 Exclude trading properties. and Taikoo Hui Guangzhou. SUSTAINABLE DEVELOPMENT REPORT 2022 260
We have followed the Reporting Principles as recommended by GRI and as set out in the HKEX ESG Reporting Guide to define the report content and to ensure the quality of information presented in this report.
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) ESG Reporting Standards and Principles This report has been prepared in accordance with the GRI Standards: Core option and with reference to the GRI G4 Construction and Real Estate Sector Disclosures. We have been reporting on our SD performance annually against GRI since 2007. We have also prepared this report disclosing all HKEX mandatory disclosure requirements and “comply or explain” provisions set out in the Environmental, Social and Governance Reporting Guide (“HKEX ESG Reporting Guide”) contained in Appendix 27 to The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited for the year ended 31 December 2022. In 2022, we began mapping our climate disclosures to the recommendations of the International Sustainability Standards Board's (ISSB) Exposure Draft IFRS S2 Climate-related Disclosures. Please see the content index. To define the content of this report and to ensure the quality of the information presented therein, we have made reference to the GRI’s Reporting Principles and followed the HKEX ESG Reporting Guide. These include: Materiality We conduct regular materiality assessments and stakeholder engagements to identify material issues related to sustainability, and to ensure these issues are properly addressed by our SD 2030 Strategy. Please refer to Materiality for more information. Quantitative The notes accompanying our Performance Data Summary provide information about the standards and methodologies used to calculate data, where appropriate. Balance We report both the positive and negative impacts of our performance in a transparent manner to enable a reasoned and unbiased assessment of our overall performance. Consistency To facilitate comparability over time, we maintain consistency in the use of reporting standards and principles, methods used to calculate data, structure of the report, and explanations of methods and assumptions used to prepare information. We will also provide explanations to facilitate information interpretation when changes occur. SUSTAINABLE DEVELOPMENT REPORT 2022 262
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Reporting Boundary GRI For the purposes of this report, our portfolio in Hong Kong comprises primarily Grade-A office, retail, 2-2, 2-3, 2-6 hotel60, and residential properties located throughout our portfolio. These include Citygate, Cityplaza, HKEX Mandatory Pacific Place, and Taikoo Place. Our Chinese Mainland portfolio comprises major commercial mixed-use Disclosure developments in prime locations in Beijing, Chengdu, Guangzhou, and Shanghai. Also within the reporting Requirement boundary of this report is the entire Brickell City Centre in Miami, U.S.A., except for the development’s office towers, Two Brickell City Centre and Three Brickell City Centre, which were sold in July 2020. Please refer to the Reporting Boundaries of SD Data in 2022. Our approach to SD reporting reflects the scale of our operations, the complexity of our business and the significance of our various economic, environmental and social impacts. In the Performance (Economic) Pillar, the scope of disclosures aligns with the Company’s financial reporting. We have extracted selected corporate governance and financial performance information from the Swire Properties Annual Report 2022 to help us illustrate our progress on relevant focus areas of our SD 2030 Strategy. More information is available in the Swire Properties Annual Report 2022. The Places, People, Partners, and Performance (Environment) Pillars cover our management approaches to material issues arising from our businesses, joint ventures and subsidiaries in property investment, property trading and hotel investment. The scope of disclosures in these sections reflects the boundaries of our operational control. 60 In this report, hotel operations refer to hotels that we own and are managed by Swire Properties Hotel Management Limited (“Swire Hotels”), including The House Collective in Hong Kong, Beijing, Chengdu and Shanghai, and EAST in Hong Kong, Beijing and Miami, U.S.A. SUSTAINABLE DEVELOPMENT REPORT 2022 263
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) SD Data Reporting Boundary Unless stated otherwise, for the purposes of disclosing quantitative data on our SD performance, we collect and report KPIs on a 100% basis for our Hong Kong, Chinese Mainland and U.S.A. portfolios, as well as our hotel operations. Notes accompanying our Performance Data Summary provide additional information about the calculation basis for specific KPIs. Under the People Pillar, performance data includes portfolio where Swire Properties has full influence over the employee employment contract. This year, we have expanded the boundary of our health and safety data to include contractor-related accident rate. For the Partners Pillar, sustainable procurement data covers all investment properties and Hotels. The Performance (Environment) Pillar includes performance data for portfolios where Swire Properties has the full authority to introduce and implement operating policies at the operational level. The reporting boundary of some KPIs, for example Scope 3 emissions, waste diversion and material used includes investment and trading properties that are under development. For the Performance (Economic) Pillar, the scope of disclosures aligns with the Company’s financial reporting. It is our practice not to report KPIs for new developments until operational performance data is available for at least one full calendar year after each development has been opened and reached a significant level of occupancy. Also, when compared to our SD Report 2021, the boundary of KPI reporting in this report has been expanded to include Taikoo Li Qiantan and Taikoo Li Sanlitun West, which opened on 30 September 2021 and 3 December 2021 respectively. The reporting boundary for KPIs also excludes completed developments for sale. SUSTAINABLE DEVELOPMENT REPORT 2022 264
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Reporting Boundaries of SD Data in 2022 Hong Kong • Pacific Place (three office towers, shopping mall and STAR STUDIOS) portfolio • Cityplaza (shopping mall) • Taikoo Place (nine office towers, including One Island East and One Taikoo Place) • Citygate (offices and outlets including extension) • Other offices and shopping malls (South Island Place, SPACES. 8QRE, 28 Hennessy Road and Island Place) Chinese • Taikoo Hui Guangzhou Mainland • Hui Fang, Guangzhou portfolio • Taikoo Li Sanlitun, Beijing61 • INDIGO, Beijing • Sino-Ocean Taikoo Li Chengdu • HKRI Taikoo Hui, Shanghai • Taikoo Li Qiantan, Shanghai62 U.S.A. portfolio • Brickell City Centre, Miami (shopping mall) Hotels • Swire Hotels (The Upper House, EAST Hong Kong, The Opposite House, EAST Beijing, The Temple House, The Middle House and EAST, Miami6³) • Serviced Apartments (Pacific Place Apartments and EAST Residences) • Restaurants (PUBLIC, Mr & Mrs Fox and The Continental) External Assurance We obtain external independent assurance for the content of our SD reports. Deloitte Touche Tohmatsu (“Deloitte”) was engaged to provide limited assurance on selected sustainability information contained in this report in accordance with the International Standard on Assurance Engagements 3000 (Revised) “Assurance Engagements Other Than Audits or Reviews of Historical Financial Information” (“ISAE 3000”) and, with respect to greenhouse gas emissions, the International Standard on Assurance Engagements 3410 “Assurance Engagements on Greenhouse Gas Statements” (“ISAE 3410”). The scope of work carried out by Deloitte is set out in their assurance report. 61 Taikoo Li Sanlitun West was added to the reporting boundary of KPI data collection and reporting in 2022. 62 Added to the reporting boundary of KPI data collection and reporting in 2022. 6³ The sale of EAST Miami was completed in November 2021, and the environmental data from the sale date onward has been removed from the reporting boundary. SUSTAINABLE DEVELOPMENT REPORT 2022 265
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Summary of Green Building Certifications Type of Certification Rating Location Building/Project BEAM Plus Existing Building Platinum Hong Kong • Citygate Outlets • One Citygate • Cityplaza Mall • One Pacific Place • Two Pacific Place • Three Pacific Place • Pacific Place Mall • 28 Hennessy Road • Cambridge House • Devon House • Dorset House • Lincoln House • One Island East • Oxford House • PCCW Tower BEAM Plus New Building Platinum Hong Kong • ALASSIO • One Taikoo Place • South Island Place • Two Taikoo Place* • Six Pacific Place* • EIGHT STAR STREET* China Green Building Design 2-Star Beijing • ONE INDIGO Label • INDIGO Mall LEED BD+C: New Platinum Hong Kong • One Taikoo Place Construction/Core and Shell • Two Taikoo Place* • Six Pacific Place* Shanghai • HKRI Centre 1 • HKRI Centre 2 Gold Shanghai • HKRI Taikoo Hui Mall • The Middle House • Taikoo Li Qiantan SUSTAINABLE DEVELOPMENT REPORT 2022 266
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Type of Certification Rating Location Building/Project LEED O+M: Existing Building Platinum Beijing • ONE INDIGO • INDIGO Mall • EAST Beijing • Taikoo Li Sanlitun (North) • Taikoo Li Sanlitun (South) Chengdu • Sino-Ocean Taikoo Li Chengdu • The Temple House Guangzhou • Taikoo Hui Guangzhou Tower 1 • Taikoo Hui Guangzhou Tower 2 • Taikoo Hui Guangzhou (Shopping Mall) WELL Building Standard Platinum Guangzhou • Taikoo Hui Guangzhou Tower 1 • Taikoo Hui Guangzhou Tower 2 • Taikoo Hui Guangzhou (Shopping Mall) Shanghai • Taikoo Li Qiantan Hong Kong • One Taikoo Place • Two Taikoo Place* • Six Pacific Place* Includes all wholly-owned, joint venture and trading properties with valid certificates obtained within the past 5 years from the reporting period. * For new development projects that obtained ratings under BEAM Plus Provisions Assessment or LEED / WELL Precertification. SUSTAINABLE DEVELOPMENT REPORT 2022 267
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) External Charters and Memberships External Charters and Initiatives Name of Charter / Initiative Sponsoring Organisation(s) Environment and Ecology Bureau & Electrical and Mechanical 4T Charter Services Department, the Government of the Hong Kong Special Administrative Region Advancing Net Zero Hong Kong Green Building Council Building Energy Pledge Business Environment Council - Climate Change Business Forum Advisory Group Business Ambition for 1.5°C Science Based Targets Initiative, United Nations Global Compact, We Mean Business coalition Carbon Reduction Charter Environmental Protection Department, the Government of the Hong Kong Special Administrative Region Charter on External Lighting Environment and Ecology Bureau, the Government of the Hong Kong Special Administrative Region Clean Air Charter Hong Kong General Chamber of Commerce and Hong Kong Business Coalition on the Environment Environment and Ecology Bureau & Electrical and Mechanical Energy Saving Charter Services Department, the Government of the Hong Kong Special Administrative Region Energy Saving Charter on Environment and Ecology Bureau & Electrical and Mechanical “No ILB” Services Department, the Government of the Hong Kong Special Administrative Region FoodSmart Partnership Environmental Protection Department, Food Wise Hong Kong Programme Campaign and the Hong Kong Productivity Council Food Wise Charter Environment and Ecology Bureau, the Government of the Hong Kong Special Administrative Region EcoPark Management Company and Environmental Protection Friends of EcoPark Department, the Government of the Hong Kong Special Administrative Region Green Event Pledge Environmental Protection Department, the Government of the Hong Kong Special Administrative Region Low Carbon Charter Business Environment Council Manifesto for Energy Efficiency World Business Council for Sustainable Development in Buildings Power Up Coalition Business Environment Council Sustainable Procurement Green Council Charter Carbon Neutrality Partnership Environment and Ecology Bureau, the Government of the Hong Kong Special Administrative Region SUSTAINABLE DEVELOPMENT REPORT 2022 268
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Memberships Name of Association Nature of Membership BEAM Society Founding Member Board of Directors Council Member Executive Committee Member Business Environment Council* Chair, BEC Sustainable Living Environment Advisory Group Steering Committee Member, BEC Circular Economy Steering Committee Member, BEC Climate Change Business Forum Advisory Group Steering Committee China Green Building Council* Corporate Member Chinese Society for Urban Studies Corporate Member Council on Tall Buildings and CTBUH Silver Member Urban Habitat (CTBUH) Green Cross - Occupational Safety Group Member & Health Council Harbour Business Forum Patron Member (through the Swire Group) Harbourfront Commission Taskforce Member Hong Kong Association for Corporate Member Customer Service Excellence Hong Kong Chamber of Corporate Member Commerce in China Hong Kong General Chamber of Full Member Commerce* Real Estate & Infrastructure Committee Hong Kong Green Building Platinum Patron Member Council* Hong Kong Public Relations Corporate Member Professionals’ Association Limited Land and Development Advisory Committee Member Committee The British Chamber of Member, Real Estate Committee Commerce in Hong Kong The Hong Kong Management Charter Member Association The Lighthouse Club Hong Kong Corporate Member SUSTAINABLE DEVELOPMENT REPORT 2022 269
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Name of Association Nature of Membership The Real Estate Developers Board of Directors Association of Hong Kong Executive Committee Member Member, Planning Environment and Lands Sub-Committee Urban Land Institute* ULI Asia Pacific Corporate Partner U.S. Green Building Council* Gold Member World Wide Fund For Nature Pearl Member Hong Kong* World Green Building Council* Member of Corporate Advisory Board World Business Council for Member Sustainable Development* Task Force on Climate-related TCFD Supporter Financial Disclosures (TCFD)* Taskforce on Nature-related Taskforce Member Financial Disclosures (TNFD)* *Associations which were identified having initiatives aligned with the Paris Agreement Total membership fees to trade/industry associations in 2022: HKD1.75 million Total membership fees to trade/industry associations which were identified having initiatives aligned with the Paris Agreement in 2022: HKD0.86 million Trade/industry associations with largest amount of membership fees made in 2022: The Real Estate Developers Association of Hong Kong, World Green Building Council, Hong Kong Green Building Council, World Business Council for Sustainable Development and Urban Land Institute SUSTAINABLE DEVELOPMENT REPORT 2022 270
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Awards and Certifications Campaign Asia-Pacific Event Marketing Award 2022 • Gold – Best Hybrid Event – Personally Yours Chartered Institution of Building Services Engineers (CIBSE) • CIBSE Building Performance Awards 2023: Winner of Best Digital Innovation China Quality Certification Centre ISO 14001:2015 Environmental Management System Certification • INDIGO • Taikoo Hui Guangzhou • Taikoo Li Sanlitun • Sino-Ocean Taikoo Li Sanlitun Chengdu ISO 50001:2011 Energy Management System Certification • INDIGO • Taikoo Hui Guangzhou • Taikoo Li Sanlitun • Sino-Ocean Taikoo Li Sanlitun Chengdu ISO 45001:2018 Occupational Health and Safety Management System Certification • INDIGO • Taikoo Hui Guangzhou • Taikoo Li Sanlitun • Sino-Ocean Taikoo Li Sanlitun Chengdu Condé Nast Traveller The Best Hotels and Resorts in the World: The Gold List 2022 • EAST Miami The Best Hotels and Resorts in the U.S., Canada and the Caribbean: The Gold List 2022 • EAST Miami Top 20 Hotels in Miami: Readers’ Choice Awards 2022 • Ranking #14 – EAST Miami Top 10 Hotels in Hong Kong: Readers’ Choice Awards 2022 • Ranking #3 – The Upper House • Ranking #8 – EAST Hong Kong SUSTAINABLE DEVELOPMENT REPORT 2022 271
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Top 20 Hotels in China: Readers’ Choice Awards 2022 • Ranking #11 – The Temple House • Ranking #14 – The Opposite House • Ranking #19 – The Middle House Environment Bureau (Hong Kong SAR Government) Charter on External Lighting – Platinum Award – Swire Properties Limited • One Pacific Place • Two Pacific Place • Three Pacific Place • Pacific Place Mall • Citygate Outlets • Cityplaza Mall • Cambridge House • Dorset House • Lincoln House • One Island East • Oxford House Environmental Campaign Committee Hong Kong Green Organisation • Citygate • Cityplaza • Pacific Place Complex • Taikoo Place Environmental Protection Department (Hong Kong SAR Government) Indoor Air Quality Certification Scheme (Hong Kong) • Excellent Class (18/F to 19/F & 64/F to 65/F Office) – One Island East • Excellent Class (32/F) – East, Hong Kong • Excellent Class (Common Areas) – Citygate Outlets • Excellent Class (Common Areas) – Extension of Citygate Outlets (A&A) • Excellent Class (Common Areas) – Extension of Citygate Outlets (Town Lot No.11) • Excellent Class (G/F Entrance Lift Lobby) – 8 Queen's Road East • Excellent Class (G/F to 30/F Public Areas and 1/F Coffee Shop) – East, Hong Kong • Excellent Class (L49 Salisterra and Public Areas of The Upper House Hotel) – Pacific Place SUSTAINABLE DEVELOPMENT REPORT 2022 272
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) • Excellent Class (Public Area of Office Building) – One Taikoo Place • Excellent Class (Public Area of Whole Building) – South Island Place • Excellent Class (Public Areas from 1/F to 28/F) – 28 Hennessy Road • Excellent Class (Public Areas from 3/F to 28/F) – Berkshire House • Excellent Class (Public Areas from 4/F to 40/F) – One Pacific Place • Excellent Class (Public Areas from 4/F to 36/F) – Two Pacific Place • Excellent Class (Public Areas from LG/F to 38/F) – Three Pacific Place • Excellent Class (Public Areas of Office Building) – Cambridge House • Excellent Class (Public Areas of Office Building) – Lincoln House • Excellent Class (Public Areas of Office Building) – Oxford House • Excellent Class (Public Areas of Office Building) – PCCW Tower • Excellent Class (Public Areas of Whole Building) – Devon House • Excellent Class (Public Areas of Whole Building) – Dorset House • Excellent Class (Public Areas of Whole Building) – One Island East • Excellent Class (Whole Office Building) – One Citygate • Good Class (Common Area on 5/F - 30/F) – EAST Residences • Good Class (Public Areas of Shopping Mall) – Cityplaza • Good Class (Public Areas of Shopping Mall) – Island Place • Good Class (Public Areas of the Shopping Mall) – Pacific Place Mall Hong Kong Green Building Council and the Professional Green Building Council Green Building Award 2021 • Pioneer Award in Green Building Leadership (Facilities Management) • Two Taikoo Place: Grand Award – New Buildings Category: Projects Under Construction and/or Design – Commercial Hong Kong Green Organisation Certification IAQwi$e Certificate • Excellence level (Public Area from 1/F to 28/F) – 28 Hennessy Road • Excellence level (G/F Entrance Lift Lobby) – 8 Queen’s Road East • Excellence level (Public Area from 4/F to 40/F) – One Pacific Place • Excellence level (Public Area from 4/F to 36/F) – Two Pacific Place • Excellence level (Public Area from LG/F to 38/F) – Three Pacific Place • Excellence level (Whole Office Building) – One Citygate • Excellence level (Common Area) – Citygate Outlets • Excellence level (Public Area from 3/F to 28/F) – Berkshire House • Excellence level (Public Area of Whole Building) – Cambridge House SUSTAINABLE DEVELOPMENT REPORT 2022 273
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) • Excellence level (Public Area of Whole Building) – Devon House • Excellence level (Public Area of Whole Building) – Dorset House • Excellence level (Public Area of Whole Building) – Lincoln House • Excellence level (Public Area of Whole Building) – One Island East • Excellence level (18/F to 19/F & 64/F to 65/F Office) – One Island East • Excellence level (Public Area of Whole Building) – Oxford House • Excellence level (Public Area of Whole Building) – PCCW Tower • Excellence level (Public Area of Whole Building) – South Island Place • Excellence level (Public Area of Office Building) – One Taikoo Place • Excellence level (Common Area of Extension) – Citygate Outlets (A&A) • Excellence level (Common Area of Extension) – Citygate Outlets (Town Lot No.11) Hong Kong Green Shop Alliance Award 2022 • Special Citation - Carbon Neutrality – Swire Properties Limited • 2nd Runner Up – Best Green Practices in Mall – Citygate Outlets • Best Tenant Partner Award – Best Collaborative Effort of Malls and Shops – Cityplaza • Excellent Green Product Advocator – Citygate Outlets • Excellent Green Product Advocator – Cityplaza Hong Kong Institute of Certified Public Accountants Best Corporate Governance and ESG Awards 2022 – ESG Award – Non-Hang Seng Index (Large Market Capitalisation) Category – Winner – Swire Properties Limited Hong Kong Quality Assurance Agency (HKQAA) • ISO 14001:2015 Environmental Management System Certification – Hong Kong Portfolio • ISO 50001:2018 Energy Management System Certification – Hong Kong Portfolio • ISO 45001:2018 Occupational Health and Safety Management System Certification – Hong Kong Portfolio Marketing Magazine DigiZ Awards 2022 • Gold Award – Best Interactive Media Strategies – Cityplaza LIVE HAPPY – Unleash Your Happiness • Silver Award – Best Digital CSR Campaign – Cityplaza LIVE HAPPY – Unleash Your Happiness • Bronze Award – Best Cross-Platform Campaign – Cityplaza LIVE HAPPY – Unleash Your Happiness • Silver Award – Best Social Media Strategies – Cityplaza x Monster Inc. Merry GIFTmas • Bronze Award – Best Digital OOH Campaign – Citygate Outlets’ Jolly Christmas Market • Bronze Award – Best Conversion Optimisation Strategies – Citygate Outlets’ Jolly Christmas Market Loyalty & Engagement Awards 2022 SUSTAINABLE DEVELOPMENT REPORT 2022 274
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) • Gold Award – Best Social Media Strategy – Swire Properties x Tap & Go CVS Campaign Marketing Events Awards 2022 • Gold Award – Best Audience Growth Event – Cityplaza LIVE HAPPY – Unleash Your Happiness • Gold Award – Best Engaging Event – Cityplaza LIVE HAPPY – Unleash Your Happiness • Gold Award – Best Event – Retail – Cityplaza LIVE HAPPY – Unleash Your Happiness • Silver Award – Best Pop-Up Event – Cityplaza LIVE HAPPY – Unleash Your Happiness • Bronze Award – Best Launch/Rebranding Event – Cityplaza LIVE HAPPY – Unleash Your Happiness • Silver Award – Best Use of Influencer – Cityplaza x Monster Inc. Merry GIFTmas • Silver Award – Best Use of Social Media – Swire Properties x Tap & Go CVS Campaign PR Awards 2022 • Bronze Award – Best Engagement – Mass Community – Cityplaza LIVE HAPPY – Unleash Your Happiness Marketing Excellence Awards 2022 • Silver Award – Excellence in Partnership – Cityplaza The MINIONS House of Kung Fu • Silver Award – Excellence in Targeted Event – Cityplaza The MINIONS House of Kung Fu MIPIM Asia Awards 2022 • Gold Award – Best Retail Development – Taikoo Li Qiantan • Bronze Award – Best Residential Development – EIGHT STAR STREET Occupational Safety & Health Council 21st Hong Kong Occupational Safety & Health Award • Silver Award – OSH Annual Report Award – Swire Properties Limited The Hong Kong Council of Social Service • 20 Years Plus Caring Company Logo – Swire Properties Limited • 20 Years Plus Caring Organisation Logo – Swire Properties Limited The Hong Kong Management Association 2022 Best Annual Reports Awards • Bronze Award – “General” Category – Swire Properties Limited • Property Development & Investment – Best Environmental, Social and Governance Reporting Award – Swire Properties Limited The Royal Institution of Chartered Surveyors SUSTAINABLE DEVELOPMENT REPORT 2022 275
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) RICS Awards Hong Kong 2022 • Winner – Sustainability Award – Swire Properties Limited RICS Awards China 2022 • Taikoo Li Sanlitun West: Excellence – “Regeneration Project of the Year” TripAdvisor • 2022 Travelers' Choice Award – No.3 in the Top 25 Hotels China Category; No.23 in the Top 25 Hotels Asia Category – The Middle House • 2022 Travelers' Choice Award – No.5 in the Top 25 Hotels China Category – The Opposite House • 2022 Travelers' Choice Award – No.11 in the Top 25 Hotels China Category – The Upper House Water Supplies Department (Hong Kong SAR Government) Quality Water Supply Scheme for Buildings – Flushing Water • 8 Queen’s Road East • Berkshire House • Cambridge House • Citygate Outlets & One Citygate • Cityplaza • Devon House • Dorset House • Five Pacific Place (28 Hennessy Road) • Lincoln House • One Island East • One Taikoo Place • Oxford House • Pacific Place (One Pacific Place, Two Pacific Place and Pacific Place Mall) • PCCW Tower • South Island Place • Three Pacific Place Quality Water Supply Scheme for Buildings – Fresh Water (Management System) Certificate – Gold Certificate • 8 Queen's Road East • Berkshire House • Cambridge House • Citygate Outlets & One Citygate SUSTAINABLE DEVELOPMENT REPORT 2022 276
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) • One Pacific Place • Two Pacific Place • Three Pacific Place • Five Pacific Place (28 Hennessy Road) • Pacific Place Mall • Devon House • Dorset House • Lincoln House • Oxford House • One Island East • PCCW Tower Quality Water Supply Scheme for Buildings – Fresh Water (Management System) Certificate – Blue Certificate • One Taikoo Place • Cityplaza • South Island Place • Island Place Shopping Mall SUSTAINABLE DEVELOPMENT REPORT 2022 277
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Performance Data Summary (Environmental) Hong Kong Portfolio Chinese Mainland Portfolio U.S.A. Portfolio Hotels Total Unit 2022 2021 2020 2019 2018 2022* 2021 2020 2019 2018 2022 2021 2020 2019 2018 2022 2021 2020 2019 2018 2022 Energy consumption Direct energy consumption GJ 1,401 2,853 2,654 2,393 2,622 112,226 111,017 94,589 112,936 88,306 253 250 464 710 775 63,408 75,458 67,742 88,136 74,780 177,288 Industrial diesel Litres - - - - - 6,990 5,120 5,000 5,000 5,150 6,072 6,015 11,928 18,704 20,677 420 3,603 365 2,298 15 13,482 Ultra-low sulphur diesel (ULSD) Litres 18,043 23,867 35,241 52,940 58,513 - - - - - - - - - - 304 338 340 609 246 18,347 Biodiesel Litres 14,016 53,125 33,607 60 60 - - - - - - - - - - - - - - - 14,016 Petrol Litres 8,672 7,197 8,355 14,819 15,697 30,833 53,288 55,604 67,430 63,625 1,030 1,026 1,049 1,128 927 17,034 17,310 21,799 43,217 44,512 57,569 Town gas Unit - - - - - - - - - - - - - - - 145,536 163,642 143,957 219,549 236,138 145,536 Natural gas GJ - - - - - 110,953 109,090 92,591 110,551 86,040 - - - - - 55,832 66,895 60,094 76,080 61,842 166,785 (1) (1) Indirect energy consumption GJ 462,983 508,683 514,578 511,039 568,654 443,488 347,014 334,331 351,107 252,248 29,660 32,455 42,941 60,310 56,129 135,217 169,908 158,135 186,136 157,486 1,071,348 (1) (1) Non-renewable electricity purchased MWh 128,475 141,240 142,881 141,955 157,959 64,344 70,208 81,447 97,530 70,069 8,239 9,015 11,928 16,753 15,591 32,613 42,051 43,926 51,704 43,746 233,671 Off-site renewable electricity purchased (via power purchase agreement) MWh - - - - - 40,688 26,185 11,423 - - - - - - - 4,947 5,146 - - - 45,635 On-site renewable electricity generated MWh 131 180 136 - - 248 239 237 263 46 - - - - - - - - - - 379 District heating (energy purchased from local utility companies) MWh - - - - - 12,527 - - - - - - - - - - - - - - 12,527 District cooling (energy purchased from local utility companies) MWh - - - - - 5,384 - - - - - - - - - - - - - - 5,384 (2) (1) (1) R Total energy consumption GJ 464,384 511,536 517,232 513,432 571,276 555,714 458,031 428,920 464,043 340,554 29,913 32,705 43,405 61,020 56,904 198,625 245,366 225,877 274,272 232,266 1,248,636 Carbon emissions(³) Direct carbon emissions (Scope 1) Tonnes of CO e 190 1,496 3,630 1,461 1,679 6,220 5,679 4,865 6,057 4,550 18 17 33 51 56 3,428 4,064 3,599 4,675 3,984 9,856 2 (1) (1) Indirect carbon emissions (Scope 2) - market-based method Tonnes of CO e 86,558 94,893 112,364 110,557 121,952 43,874 40,254 46,166 64,379 46,252 3,161 3,706 4,924 7,664 7,133 22,100 26,732 27,735 35,421 29,545 155,693 2 (1) (1) R Total carbon emissions (Scopes 1 & 2) - market-based method Tonnes of CO e 86,748 96,389 115,994 112,018 123,631 50,094 45,933 51,031 70,436 50,802 3,179 3,723 4,957 7,715 7,189 25,528 30,796 31,334 40,096 33,529 165,549 2 Indirect carbon emissions (Scope 2) - location-based method Tonnes of CO e 86,640 94,936(1) 112,410 110,557 121,952 70,972 59,137 57,282 64,379 46,252 3,161 3,706 4,924 7,664 7,133 25,185 29,569(1) 29,274 35,421 29,545 185,958 2 (1) (1) R Total carbon emissions (Scopes 1 & 2) - location-based method Tonnes of CO e 86,830 96,432 116,040 112,018 123,631 77,192 64,816 62,147 70,436 50,802 3,179 3,723 4,957 7,715 7,189 28,613 33,633 32,873 40,096 33,529 195,814 2 Biogenic carbon emissions Tonnes of CO e 33 125 79 0 - - - - - - - - - - - - - - - - 33 2 Materials used Refrigerants containing HCFCs refilled Kilograms 0 0 192 347 170 0 0 0 0 0 0 0 0 0 0 - - - - - 0 Refrigerants containing HFCs refilled Kilograms 91 1,095 2,702 987 1,141 391 0 0 189 0 0 0 0 0 0 54 131 39 49 46 536 Paper products Kilograms 19,499 22,587 24,870 27,078 29,612 10,887 13,496 19,746 17,925 10,275 - - - - - 14,455 16,978 10,862 19,722 19,272 44,841 Water consumption 3 (1) (1) (1) R Water consumption - municipal 000 m 359 415 454 418 317 936 874 885 1,011 668 54 67 64 111 106 290 422 356 470 431 1,639 Wastewater reuse and discharge 3 Wastewater discharged 000 m 35,279 38,914 38,607 40,097 46,288 858 845 858 983 638 54 67 64 111 106 304 462 344 508 414 36,495 Seawater reused for flushing m3 200,696 225,829 207,579 283,285 337,318 - - - - - - - - - - 30,359 28,618 35,903 40,529 21,211 231,055 Waste potable water reused for flushing m3 7,313 10,848 6,527 7,296 8,936 45,006 66,641 46,174 75,020 121,432 - - - - - - - - - 0 52,319 Waste directed to disposal(4) Hazardous waste Oils and lubricants Litres 1,588 1,600 0 420 422 - - - - - - - - - - - - - - - 1,588 Non-hazardous waste Construction and demolition waste(5) Tonnes 2,942R 2,847 1,890 1,396 2,171 16,597 10,002 6,346 6,659 5,567 - - - - - - - - - - 19,539 Commercial waste Tonnes 9,395R 10,403 8,800 11,714 12,367 10,004 12,818 14,006 16,987 14,973 1,360 1,287 798 1,343 1,475 695 1,153 926 1,739 1,871 21,454 Residential waste Tonnes 11 11 1 9 128 - - - - - - - - - - - - - - - 11 Grease trap oil(6) Tonnes 519 688 634 515 534 - - - - - - - - - - 5 12 20 13 15 524 Garden waste Tonnes 401 129 211 184 0 - - - - - - - - - - - - - - - 401 Waste diverted from disposal - reuse, recycling, recovery Hazardous waste Battery electrolyte Litres 0 550 0 0 0 - - - - - - - - - - - - - - - 0 Oils and liquids Litres 78 0 160 0 530 - - - - - - - - - - - - - - - 78 Fluorescent tube Tonnes 2 2 4 2 2 - - - - - - - - - -
MENUPLACESPEOPLEPARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Performance Data Summary (Environmental) Hong Kong PortfolioChinese Mainland Portfolio U.S.A. Portfolio Hotels Total Unit202220212020201920182022*202120202019 2018 2022 2021 2020 2019 2018 2022 2021 2020 2019 2018 2022 Energy consumption Direct energy consumptionGJ1,4012,8532,6542,3932,622112,226111,01794,589112,93688,306253250464710 775 63,408 75,458 67,742 88,136 74,780 177,288 Industrial dieselLitres-----6,9905,1205,0005,0005,150 6,072 6,015 11,928 18,704 20,677 420 3,603 365 2,298 15 13,482 Ultra-low sulphur diesel (ULSD)Litres18,04323,86735,24152,94058,513------- - - - 304 338 340 609 246 18,347 BiodieselLitres14,01653,12533,6076060---- - - - - - - - - - - - 14,016 PetrolLitres8,6727,1978,35514,81915,69730,83353,28855,60467,43063,6251,0301,026 1,049 1,128 927 17,034 17,310 21,799 43,217 44,512 57,569 Town gasUnit-------- - - - - - - - 145,536 163,642 143,957 219,549 236,138 145,536 Natural gasGJ-----110,953109,09092,591110,55186,040 - - - - - 55,832 66,895 60,094 76,080 61,842 166,785 (1) (1) Indirect energy consumptionGJ462,983508,683514,578511,039568,654443,488347,014334,331351,107252,24829,66032,45542,94160,31056,129135,217169,908158,135 186,136 157,486 1,071,348 (1) (1) Non-renewable electricity purchasedMWh128,475141,240142,881141,955157,95964,34470,20881,44797,53070,0698,2399,01511,92816,75315,59132,61342,05143,926 51,704 43,746 233,671 Off-site renewable electricity purchased (via power purchase agreement)MWh-----40,68826,18511,423------ - 4,947 5,146 - - - 45,635 On-site renewable electricity generatedMWh131180136--24823923726346- - - - - - - - - - 379 District heating (energy purchased from local utility companies)MWh-----12,527------- - - - - - - - 12,527 District cooling (energy purchased from local utility companies)MWh-----5,384------- - - - - - - - 5,384 (2)(1) (1) R Total energy consumptionGJ464,384511,536517,232513,432571,276555,714458,031428,920464,043340,55429,91332,70543,40561,02056,904198,625245,366 225,877 274,272 232,266 1,248,636 Carbon emissions(³) Direct carbon emissions (Scope 1)Tonnes of CO e1901,4963,6301,4611,6796,2205,6794,8656,0574,55018173351 56 3,428 4,064 3,599 4,675 3,984 9,856 2 (1) (1) Indirect carbon emissions (Scope 2) - market-based methodTonnes of CO e86,55894,893112,364110,557121,95243,87440,25446,16664,37946,2523,1613,7064,9247,6647,13322,10026,73227,73535,42129,545155,693 2 (1) (1) R Total carbon emissions (Scopes 1 & 2) - market-based methodTonnes of CO e86,74896,389115,994112,018123,63150,09445,93351,03170,43650,8023,1793,7234,9577,7157,18925,52830,79631,33440,09633,529165,549 2 (1) (1) Indirect carbon emissions (Scope 2) - location-based methodTonnes of CO e86,64094,936112,410110,557121,95270,97259,13757,28264,37946,2523,1613,7064,9247,6647,13325,18529,56929,27435,42129,545185,958 2 (1) (1) R Total carbon emissions (Scopes 1 & 2) - location-based methodTonnes of CO e86,83096,432116,040112,018123,63177,19264,81662,14770,43650,8023,1793,7234,9577,7157,18928,61333,63332,87340,09633,529195,814 2 Biogenic carbon emissionsTonnes of CO e33125790------ - - - - - - - - - - 33 2 Materials used Refrigerants containing HCFCs refilledKilograms00192347170000000 0 0 0 0 - - - - - 0 Refrigerants containing HFCs refilledKilograms911,0952,7029871,14139100189000 0 0 0 54 131 39 49 46 536 Paper productsKilograms19,49922,58724,87027,07829,61210,88713,49619,74617,92510,275--- - - 14,455 16,978 10,862 19,722 19,272 44,841 Water consumption 3(1) (1) (1) R Water consumption - municipal000 m3594154544183179368748851,01166854 67 64 111 106 290 422 356 470 431 1,639 Wastewater reuse and discharge 3 Wastewater discharged000 m35,27938,91438,60740,09746,2888588458589836385467 64 111 106 304 462 344 508 414 36,495 Seawater reused for flushingm3200,696225,829207,579283,285337,318 - - - - - - - - - - 30,359 28,618 35,903 40,529 21,211 231,055 Waste potable water reused for flushingm37,31310,8486,5277,2968,93645,00666,64146,17475,020121,432 - - - - - - - - - 0 52,319 Waste directed to disposal(4) Hazardous waste Oils and lubricantsLitres1,5881,6000420422 - - - - - - - - - - - - - - - 1,588 Non-hazardous waste Construction and demolition waste(5)Tonnes2,942R2,8471,8901,3962,17116,59710,0026,3466,6595,567---- - - - - - - 19,539 Commercial wasteTonnes9,395R10,4038,80011,71412,36710,00412,81814,00616,98714,9731,3601,2877981,343 1,475 695 1,153 926 1,739 1,871 21,454 Residential wasteTonnes111119128---- - - - - - - - - - - - 11 Grease trap oil(6)Tonnes519688634515534---- - - - - - - 5 12 20 13 15 524 Garden wasteTonnes4011292111840---- - - - - - - - - - - - 401 Waste diverted from disposal - reuse, recycling, recovery Hazardous waste Battery electrolyteLitres0550000 - - - - - - - - - - - - - - - 0 Oils and liquidsLitres7801600530 - - - - - - - - - - - - - - - 78 Fluorescent tubeTonnes22422 - - - - - - - - - -
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Performance Data Summary (Environmental) Hong Kong Portfolio Chinese Mainland Portfolio U.S.A. Portfolio Hong Kong, Chinese Mainland and U.S.A. Portfolios Total Unit 2022 2021 2020 2019 2018 2022* 2021 2020 2019 2018 2022 2021 2020 2019 2018 2022 2021 2020 2019 2018 Carbon intensity - market-based method Tonnes of CO2e/m2/year 0.079 0.088 0.103 0.109 0.111 0.045 0.047 0.053 0.073 0.074 0.069 0.081 0.085 0.109 0.102 0.062 0.069 0.080 0.092 0.097 Carbon intensity - location-based method Tonnes of CO2e/m2/year 0.079 0.088 0.103 0.109 0.111 0.069 0.067 0.064 0.073 0.074 0.069 0.081 0.085 0.109 0.102 0.074 0.078 0.085 0.092 0.097 Direct energy intensity GJ/m2/year 0.001 0.003 0.002 0.002 0.002 0.101 0.114 0.097 0.117 0.128 0.005 0.005 0.008 0.010 0.011 0.050 0.054 0.045 0.056 0.049 Indirect energy intensity GJ/m2/year 0.420 0.462 0.456 0.499 0.512 0.398 0.357 0.344 0.363 0.365 0.643 0.704 0.736 0.854 0.795 0.414 0.419 0.413 0.447 0.468 R Electricity use intensity(2) kWh/m2/year 117 128 127 139 142 95 99 96 101 102 179 195 204 237 221 107 117 115 124 130 By type Office portfolio(8) kWh/m2/year 95 103 102 111 117 81 80 76 77 80 N/A(9) N/A(9) 192 234 218 91 96 95 103 112 Retail portfolio(8) kWh/m2/year 157 173 177 194 200 90 100 95 105 102 179 195 208 239 222 111 126 123 135 138 (1) (1) (1) Water intensity m3/m2/year 0.326 0.377 0.402 0.408 0.285 0.840 0.899 0.912 1.045 0.968 1.174 1.461 1.095 1.571 1.498 0.597 0.640 0.650 0.747 0.582 Notes: Hotels R - Denotes sustainability data that has been reported on by Deloitte Touche Tohmatsu. Please refer to the Independent Limited Assurance Report for further details. Unit 2022 2021 2020 2019 2018 (1) The data has been adjusted to reflect actual situation. Carbon intensity - market-based method Tonnes of CO2e/guest night/year 0.038 0.029(1) 0.039(1) 0.030(1) 0.029(1) Carbon intensity - location-based method Tonnes of CO2e/guest night/year 0.043 0.032(1) 0.041(1) 0.030(1) 0.029(1) (2) The total energy consumption refers to energy consumption for the provision of shared services for and in the common parts of our buildings. Direct energy intensity GJ/guest night/year 0.095 0.072(1) 0.084(1) 0.066(1) 0.065(1) (3) Calculation standards and methodologies for carbon emissions: Indirect energy intensity GJ/guest night/year 0.203 0.162 0.197 0.139 0.137 (i) Carbon emissions are calculated using: Electricity use intensity(10) kWh/guest night/year 56 45(1) 55(1) 39(1) 38(1) (a) “Guidelines to Account for and Report on Greenhouse Gas Emissions and Removals for Buildings (Commercial, Residential or Institutional Purposes) in Hong Kong” published by the By geographical region Environmental Protection Department (EPD) and the Electrical and Mechanical Services Department (EMSD) of the Hong Kong Government. Hong Kong kWh/guest night/year 46 42 46 31 30 (b) GHG Protocol published by the WBCSD and the World Resources Institute. Chinese Mainland kWh/guest night/year 73 50 59 47 47 (ii) Carbon dioxide (CO ), methane (CH ), nitrous oxide (N O) and hydrofluorocarbons (HFCs) are included in greenhouse gas (GHG) calculations. Perfluorocarbons (PFCs), sulphur hexafluoride Water intensity m3/guest night/year 0.435 0.403(1) 0.442(1) 0.352(1) 0.376(1) 2 4 2 (SF ) and nitrogen trifluoride (NF ) are not applicable. 6 3 (iii) Direct carbon emissions included industrial diesel, ULSD, biodiesel (for CH4 and N2O emissions), petrol, town gas, natural gas and refrigerant containing HFCs refilled. Swire Properties (iv) Indirect carbon emissions included non-renewable electricity purchased, off-site renewable electricity purchased (via power purchase agreement), on-site renewable electricity generated, district heating and cooling (energy purchased from local utility companies) and town gas. Unit 2022 2021 2020 2019 2018 Hazardous Waste (v) Market-based method for indirect carbon emissions (as defined by GHG Protocol Scope 2 Guidance) refers to a method to quantify scope 2 emissions based on GHG emissions emitted by the generators from which the reporter contractually purchases electricity bundled with instruments, or unbundled instruments on their own. Total waste disposed(11) Tonnes 1 1 0
MENUPLACESPEOPLEPARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Performance Data Summary (Environmental) Hong Kong PortfolioChinese Mainland Portfolio U.S.A. Portfolio Hong Kong, Chinese Mainland and U.S.A. Portfolios Total Unit202220212020201920182022*202120202019 2018 2022 2021 2020 2019 2018 2022 2021 2020 2019 2018 Carbon intensity - market-based methodTonnes of CO2e/m2/year0.0790.0880.1030.1090.1110.0450.0470.0530.0730.0740.0690.0810.085 0.109 0.102 0.062 0.069 0.080 0.092 0.097 Carbon intensity - location-based methodTonnes of CO2e/m2/year0.0790.0880.1030.1090.1110.0690.0670.0640.0730.0740.0690.0810.085 0.109 0.102 0.074 0.078 0.085 0.092 0.097 Direct energy intensityGJ/m2/year0.0010.0030.0020.0020.0020.1010.1140.0970.1170.1280.0050.005 0.008 0.010 0.011 0.050 0.054 0.045 0.056 0.049 Indirect energy intensityGJ/m2/year0.4200.4620.4560.4990.5120.3980.3570.3440.3630.3650.6430.704 0.736 0.854 0.795 0.414 0.419 0.413 0.447 0.468 R Electricity use intensity(2)kWh/m2/year117128127139142959996101102 179 195 204 237 221 107 117 115 124 130 By type Office portfolio(8)kWh/m2/year951031021111178180767780 N/A(9) N/A(9) 192 234 218 91 96 95 103 112 Retail portfolio(8)kWh/m2/year1571731771942009010095105102 179 195 208 239 222 111 126 123 135 138 (1)(1) (1) Water intensitym3/m2/year0.3260.3770.4020.4080.2850.8400.8990.9121.0450.9681.174 1.461 1.095 1.571 1.498 0.597 0.640 0.650 0.747 0.582 Notes: HotelsR - Denotes sustainability data that has been reported on by Deloitte Touche Tohmatsu. Please refer to the Independent Limited Assurance Report for further details. Unit20222021202020192018(1) The data has been adjusted to reflect actual situation. Carbon intensity - market-based methodTonnes of CO2e/guest night/year0.0380.029(1)0.039(1)0.030(1)0.029(1) Carbon intensity - location-based methodTonnes of CO2e/guest night/year0.0430.032(1)0.041(1)0.030(1)0.029(1)(2) The total energy consumption refers to energy consumption for the provision of shared services for and in the common parts of our buildings. Direct energy intensityGJ/guest night/year0.0950.072(1)0.084(1)0.066(1)0.065(1)(3) Calculation standards and methodologies for carbon emissions: Indirect energy intensityGJ/guest night/year0.2030.1620.1970.1390.137(i) Carbon emissions are calculated using: Electricity use intensity(10)kWh/guest night/year5645(1)55(1)39(1)38(1)(a) “Guidelines to Account for and Report on Greenhouse Gas Emissions and Removals for Buildings (Commercial, Residential or Institutional Purposes) in Hong Kong” published by the By geographical regionEnvironmental Protection Department (EPD) and the Electrical and Mechanical Services Department (EMSD) of the Hong Kong Government. Hong KongkWh/guest night/year4642463130 (b) GHG Protocol published by the WBCSD and the World Resources Institute. Chinese MainlandkWh/guest night/year7350594747 (ii) Carbon dioxide (CO ), methane (CH ), nitrous oxide (N O) and hydrofluorocarbons (HFCs) are included in greenhouse gas (GHG) calculations. Perfluorocarbons (PFCs), sulphur hexafluoride Water intensitym3/guest night/year0.4350.403(1)0.442(1)0.352(1)0.376(1)242 (SF ) and nitrogen trifluoride (NF ) are not applicable. 6 3 (iii) Direct carbon emissions included industrial diesel, ULSD, biodiesel (for CH4 and N2O emissions), petrol, town gas, natural gas and refrigerant containing HFCs refilled. Swire Properties(iv) Indirect carbon emissions included non-renewable electricity purchased, off-site renewable electricity purchased (via power purchase agreement), on-site renewable electricity generated, district heating and cooling (energy purchased from local utility companies) and town gas. Unit20222021202020192018 Hazardous Waste (v) Market-based method for indirect carbon emissions (as defined by GHG Protocol Scope 2 Guidance) refers to a method to quantify scope 2 emissions based on GHG emissions emitted by the generators from which the reporter contractually purchases electricity bundled with instruments, or unbundled instruments on their own. Total waste disposed(11)Tonnes110
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Carbon Emissions - Scope 3 Emissions Inventory and Reporting Methodology Scope 3 category Description Applicability Methodology(1) / Justification for exclusion Source of activity data Source of emission factor 2022 2021 2020 2019 2018 (Tonnes of CO e) (Tonnes of CO e) (Tonnes of CO e) (Tonnes of CO e) (Tonnes of CO e) 2 2 2 2 2 The primary data of the key inputs identified are For 2022 Data: For 2022 Data: multiplied by the appropriate emission factors to calculate (i) Primary procurement spend • “Supply Chain GHG Emission Factors for US emissions in this category. data from Swire Properties Commodities and Industries” published by United (ii) Primary water - municipal data States Environmental Protection Agency Upstream emissions from Emissions in this category are calculated using from Swire Properties • Hong Kong Water Supplies Department (WSD) Annual extraction, production and (i) spend-based method for carbon emissions from Report transportation processes procurement spend (except for trading properties); For 2018 - 2021 Data: • Hong Kong Drainage Services Department (DSD) associated with Swire Properties’ (ii) supplier-specific method for carbon emissions due to • Primary procurement spend Sustainability Report purchased goods and services electricity used for processing fresh water and sewage by data from Swire Properties government departments. For 2018 - 2021 Data: Purchased goods and • Country-specific factors from Comprehensive 1 services Yes Environmental Data Archive (CEDA) U.S. version 5 97,752 131,214 90,124 113,849 75,229 New Trading Properties: For 2022 Data: Refer to emission factors listed in Scope 3 Category 2 Emissions in this category are calculated using (i) Primary consumption data capital goods (for new development projects) Upfront embodied carbon (i) supplier-specific method for residential buildings in of construction materials and emissions of new trading Hong Kong; construction activities in the properties (e.g. residential (ii) average-data method for residential buildings development of residential (2) buildings) developed by Swire overseas. buildings Properties (ii) Gross floor area (GFA) of (3) residential buildings overseas New Investment Properties: New Investment Properties: New Investment Properties: With technical support from a research team at the Hong Primary consumption data of • Swire Properties and HKUST jointly published Kong University of Science and Technology (HKUST)’s construction materials and academic paper at the 8th International Conference Department of Civil and Environmental Engineering, construction activities from main on Innovative Production and Construction (4) Swire Properties has developed a carbon accounting contractor • CIC Green Product Certification in Hong Kong tool to calculate the cradle-to-site carbon footprint for • Institution of Civil Engineers (ICE) Database new development projects. For reporting purpose, the • Sustainability reports of the local utility companies (for emissions are allocated to the year of project completion. electricity and town gas in Hong Kong) • “Guidelines to Account for and Report on Greenhouse Upfront embodied carbon Gas Emissions and Removals for Buildings 2 Capital goods emissions of new investment Yes (Commercial, Residential or Institutional Purposes) in 76,783 N/A N/A N/A 174,214 properties developed by Swire Hong Kong” published by the EPD and EMSD Properties. Existing Portfolio: Existing Portfolio: Existing Portfolio: Embodied carbon from refurbishment and replacement Primary procurement spend data • For 2022 Data: “Supply Chain GHG Emission Factors for of existing portfolios are reported under category 1 from Swire Properties US Commodities and Industries” published by United purchased goods and services. States Environmental Protection Agency • For 2018 - 2021 Data: Country-specific factors from Comprehensive Environmental Data Archive (CEDA) U.S. version 5 Third party provided emission factors are applied to the Primary energy data from • Country-specific GHG emission factors from electricity Emissions related to (i) primary data on amounts of electricity, gasoline, diesel, properties managed by Swire by the International Energy Agency (IEA) extraction, production, natural gas, and other fuels used by Swire Properties Properties • Country-specific GHG emission factors from Ecoinvent transportation of fuels and or supplied to end users to calculate emissions in this version 3 Fuel- and energy- energy purchased by Swire category. • Country-specific GHG emission factors from related activities (not Properties, not already Comprehensive Environmental Data Archive (CEDA) 3 included in scope 1 or Yes U.S. version 5 5,729(5) 2,117 2,063 1,922 2,038 accounted for in scope 1 or scope • Country-specific energy and fuel price data scope 2) 2 and (ii) electricity supplied to end users for electric vehicle • Country-specific transmission and distribution losses charging in Hong Kong and from the World Bank database library Chinese Mainland portfolios • Sustainability reports of the local utility companies (for electricity in Hong Kong) - for 2022 data only Upstream Emissions from transportation The primary data related to transportation and 4 transportation and and distribution of goods and Yes distribution of good and services are multiplied by the Primary data from Swire Factors from Comprehensive Environmental Data Archive 5,788 6,652 5,571 5,953 6,161 distribution services purchased by Swire appropriate CEDA factors to calculate emissions in this Properties (CEDA) U.S. version 5 Properties category. SUSTAINABLE DEVELOPMENT REPORT 2022 280
MENUPLACESPEOPLEPARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Carbon Emissions - Scope 3 Emissions Inventory and Reporting Methodology Scope 3 categoryDescriptionApplicabilityMethodology(1) / Justification for exclusionSource of activity data Source of emission factor2022 2021 2020 2019 2018 (Tonnes of CO e) (Tonnes of CO e) (Tonnes of CO e) (Tonnes of CO e) (Tonnes of CO e) 2 2 2 2 2 The primary data of the key inputs identified are For 2022 Data:For 2022 Data: multiplied by the appropriate emission factors to calculate (i) Primary procurement spend • “Supply Chain GHG Emission Factors for US emissions in this category.data from Swire PropertiesCommodities and Industries” published by United (ii) Primary water - municipal data States Environmental Protection Agency Upstream emissions from Emissions in this category are calculated using from Swire Properties• Hong Kong Water Supplies Department (WSD) Annual extraction, production and (i) spend-based method for carbon emissions from Report transportation processes procurement spend (except for trading properties);For 2018 - 2021 Data:• Hong Kong Drainage Services Department (DSD) associated with Swire Properties’ (ii) supplier-specific method for carbon emissions due to • Primary procurement spend Sustainability Report purchased goods and services electricity used for processing fresh water and sewage by data from Swire Properties government departments.For 2018 - 2021 Data: Purchased goods and • Country-specific factors from Comprehensive 1servicesYes Environmental Data Archive (CEDA) U.S. version 5 97,752 131,214 90,124 113,849 75,229 New Trading Properties:For 2022 Data:Refer to emission factors listed in Scope 3 Category 2 Emissions in this category are calculated using(i) Primary consumption data capital goods (for new development projects) Upfront embodied carbon (i) supplier-specific method for residential buildings in of construction materials and emissions of new trading Hong Kong;construction activities in the properties (e.g. residential (ii) average-data method for residential buildings development of residential (2) buildings) developed by Swire overseas.buildings Properties(ii) Gross floor area (GFA) of (3) residential buildings overseas New Investment Properties: New Investment Properties: New Investment Properties: With technical support from a research team at the Hong Primary consumption data of • Swire Properties and HKUST jointly published Kong University of Science and Technology (HKUST)’s construction materials and academic paper at the 8th International Conference Department of Civil and Environmental Engineering, construction activities from main on Innovative Production and Construction (4) Swire Properties has developed a carbon accounting contractor• CIC Green Product Certification in Hong Kong tool to calculate the cradle-to-site carbon footprint for • Institution of Civil Engineers (ICE) Database new development projects. For reporting purpose, the • Sustainability reports of the local utility companies (for emissions are allocated to the year of project completion. electricity and town gas in Hong Kong) • “Guidelines to Account for and Report on Greenhouse Upfront embodied carbon Gas Emissions and Removals for Buildings 2Capital goodsemissions of new investment Yes (Commercial, Residential or Institutional Purposes) in 76,783 N/A N/A N/A 174,214 properties developed by Swire Hong Kong” published by the EPD and EMSD Properties. Existing Portfolio:Existing Portfolio:Existing Portfolio: Embodied carbon from refurbishment and replacement Primary procurement spend data • For 2022 Data: “Supply Chain GHG Emission Factors for of existing portfolios are reported under category 1 from Swire PropertiesUS Commodities and Industries” published by United purchased goods and services.States Environmental Protection Agency • For 2018 - 2021 Data: Country-specific factors from Comprehensive Environmental Data Archive (CEDA) U.S. version 5 Third party provided emission factors are applied to the Primary energy data from • Country-specific GHG emission factors from electricity Emissions related to (i) primary data on amounts of electricity, gasoline, diesel, properties managed by Swire by the International Energy Agency (IEA) extraction, production, natural gas, and other fuels used by Swire Properties Properties• Country-specific GHG emission factors from Ecoinvent transportation of fuels and or supplied to end users to calculate emissions in this version 3 Fuel- and energy-energy purchased by Swire category. • Country-specific GHG emission factors from related activities (not Properties, not already Comprehensive Environmental Data Archive (CEDA) 3included in scope 1 or Yes U.S. version 5 5,729(5) 2,117 2,063 1,922 2,038 accounted for in scope 1 or scope • Country-specific energy and fuel price data scope 2)2 and (ii) electricity supplied to end users for electric vehicle • Country-specific transmission and distribution losses charging in Hong Kong and from the World Bank database library Chinese Mainland portfolios• Sustainability reports of the local utility companies (for electricity in Hong Kong) - for 2022 data only Upstream Emissions from transportation The primary data related to transportation and 4transportation and and distribution of goods and Yes distribution of good and services are multiplied by the Primary data from Swire Factors from Comprehensive Environmental Data Archive 5,7886,652 5,571 5,953 6,161 distributionservices purchased by Swire appropriate CEDA factors to calculate emissions in this Properties (CEDA) U.S. version 5 Properties category. 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MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Carbon Emissions - Scope 3 Emissions Inventory and Reporting Methodology Scope 3 category Description Applicability Methodology(1) / Justification for exclusion Source of activity data Source of emission factor 2022 2021 2020 2019 2018 (Tonnes of CO e) (Tonnes of CO e) (Tonnes of CO e) (Tonnes of CO e) (Tonnes of CO e) 2 2 2 2 2 For 2022 Data: For 2022 Data: For 2022 Data: Waste data is multiplied by corresponding emission • Primary waste data from • “Guidelines to Defra’s Greenhouse Gas Conversion factors to calculate emissions in this category. properties managed by Swire Factors for Company Reporting” published by the Properties Department for Environment, Food and Rural Affairs For 2018 - 2021 Data: (Defra) of the UK Waste generated in Emissions from disposal and The primary spend data related to waste management For 2018 - 2021 Data: 5 operations treatment of waste generated by Yes services are multiplied by the corresponding Scope 3 GHG • Primary procurement spend For 2018 - 2021 Data: 31,405 40,358 38,698 36,969 30,748 Swire Properties emission data associated with average waste treatment data from Swire Properties • Country-specific factors from Comprehensive services in the U.S.A. to calculate emissions in this Environmental Data Archive (CEDA) U.S. version 5 category. Air-travel: Air-travel: Air-travel: Flight distance is multiplied by corresponding emission Travel related data provided by Cathay Pacific’s Fly Greener Programme factors to calculate emissions in this category. travel providers Emissions from transportation of Swire Properties’ employees 6 Business travel for business-related activities (in Yes 3,947 3,764 1,982 3,360 3,364 vehicles not owned or operated Non Air-travel: Non Air-travel: Non Air-travel: by Swire Properties) Emissions in this category are derived from the amount Primary procurement spend data GHG Protocol Scope 3 Evaluator Swire Properties’ employee spend on “automobile” and from Swire Properties “hotel room”. Emissions from transportation of Emissions in this category are derived from Swire Number of Swire Properties 7 Employee commuting employees between their homes Yes Properties’ number of employees. employees GHG Protocol Scope 3 Evaluator 12,750 12,750 12,750 12,750 12,750 and worksites As a real estate developer, Swire Properties develops 8 Upstream leased assets Emissions from operation of No and manages properties which are leased to customers. N/A N/A N/A N/A N/A N/A N/A assets leased by Swire Properties The emissions of leased offices are identified as Scope 2 emissions. Emissions from transportation As a real estate developer, Swire Properties develops and Downstream and distribution of products sold manages properties which are leased to customers. There 9 transportation and between Swire Properties and No are no manufactured products and hence no emissions to N/A N/A N/A N/A N/A N/A N/A distribution the end consumer, including report under this category. retail and storage Emissions from processing of As a real estate developer, Swire Properties develops and 10 Processing of sold intermediate products sold by No manages properties which are leased to customers. There N/A N/A N/A N/A N/A N/A N/A products downstream companies such as are no manufactured products and hence no emissions to manufacturers report under this category. Operational carbon emissions The design electricity use intensity of the residential • Design electricity use intensity from the entire use stage buildings and their projected future change, is multiplied of residential buildings • International Energy Agency (IEA) database 11 Use of sold products of trading properties (e.g. Yes by corresponding projected emission factors of the entire developed by Swire Properties • Hong Kong’s Climate Action Plan 2050 60,025 N/A N/A N/A N/A residential buildings) developed use stage to calculate emissions in this category(2)(³). • GFA of residential buildings(2)(³) • COP26: ASEAN’s Commitment in The Energy Sector by Swire Properties SUSTAINABLE DEVELOPMENT REPORT 2022 281
MENUPLACESPEOPLEPARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Carbon Emissions - Scope 3 Emissions Inventory and Reporting Methodology Scope 3 categoryDescriptionApplicabilityMethodology(1) / Justification for exclusionSource of activity data Source of emission factor2022 2021 2020 2019 2018 (Tonnes of CO e) (Tonnes of CO e) (Tonnes of CO e) (Tonnes of CO e) (Tonnes of CO e) 2 2 2 2 2 For 2022 Data: For 2022 Data: For 2022 Data: Waste data is multiplied by corresponding emission • Primary waste data from • “Guidelines to Defra’s Greenhouse Gas Conversion factors to calculate emissions in this category. properties managed by Swire Factors for Company Reporting” published by the Properties Department for Environment, Food and Rural Affairs For 2018 - 2021 Data: (Defra) of the UK Waste generated in Emissions from disposal and The primary spend data related to waste management For 2018 - 2021 Data: 5operations treatment of waste generated by Yes services are multiplied by the corresponding Scope 3 GHG • Primary procurement spend For 2018 - 2021 Data:31,40540,358 38,698 36,969 30,748 Swire Properties emission data associated with average waste treatment data from Swire Properties• Country-specific factors from Comprehensive services in the U.S.A. to calculate emissions in this Environmental Data Archive (CEDA) U.S. version 5 category. Air-travel:Air-travel:Air-travel: Flight distance is multiplied by corresponding emission Travel related data provided by Cathay Pacific’s Fly Greener Programme factors to calculate emissions in this category.travel providers Emissions from transportation of Swire Properties’ employees 6Business travelfor business-related activities (in Yes 3,947 3,764 1,982 3,360 3,364 vehicles not owned or operated Non Air-travel: Non Air-travel: Non Air-travel: by Swire Properties)Emissions in this category are derived from the amount Primary procurement spend data GHG Protocol Scope 3 Evaluator Swire Properties’ employee spend on “automobile” and from Swire Properties “hotel room”. Emissions from transportation of Emissions in this category are derived from Swire Number of Swire Properties 7Employee commuting employees between their homes Yes Properties’ number of employees.employeesGHG Protocol Scope 3 Evaluator12,750 12,750 12,750 12,750 12,750 and worksites As a real estate developer, Swire Properties develops 8Upstream leased assets Emissions from operation of Noand manages properties which are leased to customers. N/AN/A N/A N/A N/A N/A N/A assets leased by Swire Properties The emissions of leased offices are identified as Scope 2 emissions. Emissions from transportation As a real estate developer, Swire Properties develops and Downstream and distribution of products sold manages properties which are leased to customers. There 9transportation and between Swire Properties and Noare no manufactured products and hence no emissions to N/AN/A N/A N/A N/A N/A N/A distributionthe end consumer, including report under this category. retail and storage Emissions from processing of As a real estate developer, Swire Properties develops and 10Processing of sold intermediate products sold by Nomanages properties which are leased to customers. There N/AN/A N/A N/A N/A N/A N/A productsdownstream companies such as are no manufactured products and hence no emissions to manufacturersreport under this category. Operational carbon emissions The design electricity use intensity of the residential • Design electricity use intensity from the entire use stage buildings and their projected future change, is multiplied of residential buildings • International Energy Agency (IEA) database 11Use of sold productsof trading properties (e.g. Yesby corresponding projected emission factors of the entire developed by Swire Properties• Hong Kong’s Climate Action Plan 205060,025N/A N/A N/A N/A residential buildings) developed use stage to calculate emissions in this category(2)(³). • GFA of residential buildings(2)(³)• COP26: ASEAN’s Commitment in The Energy Sector by Swire Properties SUSTAINABLE DEVELOPMENT REPORT 2022 281
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Carbon Emissions - Scope 3 Emissions Inventory and Reporting Methodology Scope 3 category Description Applicability Methodology(1) / Justification for exclusion Source of activity data Source of emission factor 2022 2021 2020 2019 2018 (Tonnes of CO e) (Tonnes of CO e) (Tonnes of CO e) (Tonnes of CO e) (Tonnes of CO e) 2 2 2 2 2 For 2022 Data: For 2022 Data: For 2022 Data: • GFA of the residential buildings(2)(³) is multiplied by the GFA of residential buildings(2)(³) • “Comprehensive Evaluation of Carbon Emissions for end of life carbon emission factor to calculate emissions the Development of High-Rise Residential Building”, End of life carbon emissions from in this category. For 2018 - 2021 Data: MDPI Journal - Buildings 2018 End-of-life treatment waste disposal and treatment • Primary procurement spend 12 of sold products of trading properties (e.g. Yes For 2018 - 2021 Data: data from Swire Properties For 2018 - 2021 Data: 276 54 51 49 41 residential buildings) developed • Data on the landfilled waste is multiplied by the • Process life cycle assessment (LCA) databases by Swire Properties corresponding Scope 3 GHG emissions data to calculate including U.S. Environmental Protection Agency’s emissions in this category. Waste Reduction Model database and Ecoinvent version 3 Hong Kong Portfolio: Hong Kong Portfolio: Hong Kong Portfolio: Aggregate data of metered electricity consumption from Primary electricity data from Sustainability reports of the local utility companies (for tenants are multiplied by local emission factors (market- Swire Properties(6) electricity in Hong Kong) based method) to calculate emissions in this category. Chinese Mainland Portfolio: Chinese Mainland Portfolio: Chinese Mainland Portfolio: Emissions from operation Data of metered electricity consumption at individual Primary electricity data from • “Methodology for Carbon Emissions Reduction Downstream leased of assets owned by Swire tenant level are multiplied by respective emission factors Swire Properties in Commercial Complex Buildings” (by Tsinghua R 13 assets Yes 130,657 131,478 139,414 179,515 168,403 Properties and leased to other (market-based method) to calculate emissions in this University) published in Journal of Building Energy entities category. Efficiency (Nov 2020 Edition) • References from the Chinese Mainland government and industry associations including China Renewable Energy Development Assessment Report by National Energy Administration, China Energy Statistical Yearbook by National Bureau of Statistics and China Electricity Council As a real estate developer, Swire Properties develops and 14 Franchises Emissions from operation of No manages properties which are leased to customers. We do N/A N/A N/A N/A N/A N/A N/A Swire Properties’ franchises not own any franchises business and hence there are no emissions to report in this category. As a real estate developer, Swire Properties develops 15 Investments Emissions from operation of No and manages properties which are leased to customers. N/A N/A N/A N/A N/A N/A N/A Swire Properties’ investments The low level of investment activity does not constitute a material contribution to overall GHG emissions. Notes: R - Denotes sustainability data that has been reported on by Deloitte Touche Tohmatsu. Please refer to the Independent Limited Assurance Report for further details. (1) Calculation standard and methodology for Scope 3 carbon emissions: GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard published by the WBCSD and the World Resources Institute. (2) It refers to EIGHT STAR STREET. A 50-year use phase was applied to the calculations. (3) It refers to The River, Vietnam which Swire Properties has 20% interest. A 50-year use phase was applied to the calculations. (4) It refers to Two Taikoo Place. (5) Newly included electric vehicle charging in Hong Kong and Chinese Mainland portfolios since 2022. (6) Excluded Island Place Mall. SUSTAINABLE DEVELOPMENT REPORT 2022 282
MENUPLACESPEOPLEPARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Carbon Emissions - Scope 3 Emissions Inventory and Reporting Methodology Scope 3 categoryDescriptionApplicabilityMethodology(1) / Justification for exclusionSource of activity data Source of emission factor2022 2021 2020 2019 2018 (Tonnes of CO e) (Tonnes of CO e) (Tonnes of CO e) (Tonnes of CO e) (Tonnes of CO e) 2 2 2 2 2 For 2022 Data:For 2022 Data: For 2022 Data: • GFA of the residential buildings(2)(³) is multiplied by the GFA of residential buildings(2)(³)• “Comprehensive Evaluation of Carbon Emissions for end of life carbon emission factor to calculate emissions the Development of High-Rise Residential Building”, End of life carbon emissions from in this category. For 2018 - 2021 Data:MDPI Journal - Buildings 2018 End-of-life treatment waste disposal and treatment • Primary procurement spend 12of sold productsof trading properties (e.g. Yes For 2018 - 2021 Data:data from Swire PropertiesFor 2018 - 2021 Data: 276 54 51 49 41 residential buildings) developed • Data on the landfilled waste is multiplied by the • Process life cycle assessment (LCA) databases by Swire Propertiescorresponding Scope 3 GHG emissions data to calculate including U.S. Environmental Protection Agency’s emissions in this category.Waste Reduction Model database and Ecoinvent version 3 Hong Kong Portfolio:Hong Kong Portfolio:Hong Kong Portfolio: Aggregate data of metered electricity consumption from Primary electricity data from Sustainability reports of the local utility companies (for tenants are multiplied by local emission factors (market-Swire Properties(6)electricity in Hong Kong) based method) to calculate emissions in this category. Chinese Mainland Portfolio: Chinese Mainland Portfolio: Chinese Mainland Portfolio: Emissions from operation Data of metered electricity consumption at individual Primary electricity data from • “Methodology for Carbon Emissions Reduction Downstream leased of assets owned by Swire tenant level are multiplied by respective emission factors Swire Properties in Commercial Complex Buildings” (by Tsinghua R 13assetsYes 130,657 131,478 139,414 179,515 168,403 Properties and leased to other (market-based method) to calculate emissions in this University) published in Journal of Building Energy entities category. Efficiency (Nov 2020 Edition) • References from the Chinese Mainland government and industry associations including China Renewable Energy Development Assessment Report by National Energy Administration, China Energy Statistical Yearbook by National Bureau of Statistics and China Electricity Council As a real estate developer, Swire Properties develops and 14FranchisesEmissions from operation of Nomanages properties which are leased to customers. We do N/AN/A N/A N/A N/A N/A N/A Swire Properties’ franchises not own any franchises business and hence there are no emissions to report in this category. As a real estate developer, Swire Properties develops 15Investments Emissions from operation of Noand manages properties which are leased to customers. N/AN/A N/A N/A N/A N/A N/A Swire Properties’ investmentsThe low level of investment activity does not constitute a material contribution to overall GHG emissions. Notes: R - Denotes sustainability data that has been reported on by Deloitte Touche Tohmatsu. Please refer to the Independent Limited Assurance Report for further details. (1) Calculation standard and methodology for Scope 3 carbon emissions: GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard published by the WBCSD and the World Resources Institute. (2) It refers to EIGHT STAR STREET. A 50-year use phase was applied to the calculations. (3) It refers to The River, Vietnam which Swire Properties has 20% interest. A 50-year use phase was applied to the calculations. (4) It refers to Two Taikoo Place. (5) Newly included electric vehicle charging in Hong Kong and Chinese Mainland portfolios since 2022. (6) Excluded Island Place Mall. SUSTAINABLE DEVELOPMENT REPORT 2022 282
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Performance Data Summary (Social) Hong Kong Portfolio Chinese Mainland Portfolio U.S.A. Portfolio Hotels Total 2022 2021 2020 2019 2018 2022 2021 2020 2019 2018 2022 2021 2020 2019 2018 2022 2021 2020 2019 2018 2022 Workforce Profile Total workforce 2,338 2,345 2,420 2,373 2,370 2,016 1,732 1,671 1,657 1,300 80 74 75 85 97 1,973 2,051 2,168 2,350 2,113 6,407 By gender Male 1,485 63.5% 1,507 64.3% 1,578 65.2% 1,558 65.7% 1,565 66.0% 1,276 63.3% 1,090 62.9% 1,068 63.9% 1,041 62.8% 804 61.8% 48 60.0% 42 56.8% 47 62.7% 51 60.0% 55 56.7% 1,020 51.7% 1,045 51.0% 1,092 50.4% 1,177 50.1% 1,066 50.4% 3,829 59.8% Female 853 36.5% 838 35.7% 842 34.8% 815 34.3% 805 34.0% 740 36.7% 642 37.1% 603 36.1% 616 37.2% 496 38.2% 32 40.0% 32 43.2% 28 37.3% 34 40.0% 42 43.3% 953 48.3% 1,006 49.0% 1,076 49.6% 1,173 49.9% 1,047 49.6% 2,578 40.2% By age group Under 30 years old 310 13.3% 302 12.9% 323 13.3% 334 14.1% 336 14.2% 379 18.8% 348 20.1% 362 21.7% 391 23.6% 335 25.8% 9 11.3% 9 12.2% 10 13.3% 16 18.8% 15 15.5% 656 33.2% 748 36.5% 765 35.3% 888 37.8% 774 36.6% 1,354 21.1% 30 to 50 years old 1,163 49.7% 1,210 51.6% 1,170 48.4% 1,130 47.6% 1,105 46.6% 1,420 70.4% 1,208 69.7% 1,154 69.1% 1,124 67.8% 886 68.2% 46 57.5% 45 60.8% 45 60.0% 47 55.3% 58 59.8% 1,054 53.4% 1,056 51.5% 1,148 53.0% 1,210 51.5% 1,088 51.5% 3,683 57.5% Over 50 years old 865 37.0% 833 35.5% 927 38.3% 909 38.3% 929 39.2% 217 10.8% 176 10.2% 155 9.3% 142 8.6% 79 6.1% 25 31.3% 20 27.0% 20 26.7% 22 25.9% 24 24.7% 263 13.3% 247 12.0% 255 11.8% 252 10.7% 251 11.9% 1,370 21.4% By geographical region Hong Kong 2,333 99.8% 2,340 99.8% 2,410 99.6% 2,364 99.6% 2,362 99.7% - - - - - - - - - - - - - - - - - - - - 717 36.3% 742 36.2% 831 38.3% 866 36.9% 862 40.8% 3,050 47.6% Chinese Mainland - - - - - - - - - - 2,016 100% 1,732 100% 1,671 100% 1,657 100% 1,300 100% - - - - - - - - - - 1,018 51.6% 1,083 52.8% 1,083 50.0% 1,080 46.0% 843 39.9% 3,034 47.4% Beijing - - - - - - - - - - 634 31.5% 593 34.2% 553 33.1% 546 33.0% 528 40.6% - - - - - - - - - - 407 20.6% 466 22.7% 476 22.0% 476 20.3% 516 24.4% 1,041 16.2% Shanghai - - - - - - - - - - 618 30.7% 429 24.8% 423 25.3% 436 26.3% 81 6.2% - - - - - - - - - - 287 14.6% 301 14.7% 296 13.7% 280 11.9% 0 0% 905 14.1% Guangdong province - - - - - - - - - - 386 19.1% 383 22.1% 370 22.1% 359 21.7% 371 28.5% - - - - - - - - - - 0 0% 0 0% 0 0% 0 0% 0 0% 386 6.0% Sichuan province - - - - - - - - - - 319 15.8% 327 18.9% 325 19.5% 316 19.1% 320 24.6% - - - - - - - - - - 324 16.4% 316 15.4% 311 14.3% 324 13.8% 327 15.5% 643 10.0% Other provinces - - - - - - - - - - 59 2.9% 0 0% 0 0% 0 0% 0 0% - - - - - - - - - - 0 0% 0 0% 0 0% 0 0% 0 0% 59 0.9% Miami, U.S.A. - - - - - - - - - - - - - - - - - - - - 80 100% 74 100% 75 100% 85 100% 97 100% 238 12.1% 226 11.0% 254 11.7% 404 17.2% 408 19.3% 318 5.0% Others 5(17) 0.2% 5 0.2% 10 0.4% 9 0.4% 8 0.3% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0% 5 0.1% By employment contract(1) Permanent 2,083 89.1% 2,108 89.9% 2,164 89.4% 2,130 89.8% 2,135 90.1% 2,016 100% 1,732 100% 1,671 100% 1,656 99.9% 1,300 100% 80 100% 74 100% 75 100% 85 100% 97 100% 1,872 94.9% 1,876 91.5% 1,994 92.0% 2,176 92.6% 1,914 90.6% 6,051 94.4% Fixed term/temporary 255 10.9% 237 10.1% 256 10.6% 243 10.2% 235 9.9% 0 0% 0 0% 0 0% 1 0.1% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0% 101 5.1% 175 8.5% 174 8.0% 174 7.4% 199 9.4% 356 5.6% Supervised worker - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Permanent employees by employment type Full-time 2,029 97.4% 2,055 97.5% 2,109 97.5% 2,077 97.5% 2,082 97.5% 2,016 100% 1,732 100% 1,671 100% 1,656 100% 1,300 100% 80 100% 74 100% 75 100% 84 98.8% 96 99.0% 1,833 97.9% 1,843 98.2% 1,956 98.1% 2,135 98.1% 1,881 98.3% 5,958 98.5% Part-time 54 2.6% 53 2.5% 55 2.5% 53 2.5% 53 2.5% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0% 1 1.2% 1 1.0% 39 2.1% 33 1.8% 38 1.9% 41 1.9% 33 1.7% 93 1.5% New Hires Total number and rate of new hires(2) 476 22.9% 447 21.2% 354 16.4% 500 23.5% 401 18.8% 372 18.5% 348 20.1% 261 15.6% 323 19.5% 341 26.2% 17 21.3% 10 13.5% 8 10.7% 10 11.8% 36 37.1% 666 35.6% 711 37.9% 454 22.8% 843 38.7% 776 40.5% 1,531 25.3% By gender Male 222 17.4% 252 19.1% 215 15.6% 293 21.4% 255 18.5% 211 16.5% 202 18.5% 185 17.3% 179 17.2% 191 23.8% 10 20.8% 2 4.8% 8 17.0% 6 11.8% 19 34.5% 328 33.5% 356 36.3% 223 21.7% 417 37.3% 341 34.4% 771 21.5% Female 254 31.6% 195 24.8% 139 17.8% 207 27.2% 146 19.4% 161 21.8% 146 22.7% 76 12.6% 144 23.4% 150 30.2% 7 21.9% 8 25% 0 0% 4 11.8% 17 40.5% 338 37.9% 355 39.7% 231 23.9% 426 40.2% 435 47.1% 760 30.8% By age group Under 30 years old 194 65.5% 150 52.8% 126 41.7% 158 49.5% 169 52.6% 132 34.8% 153 44.0% 114 31.5% 131 33.5% 147 43.9% 2 22.2% 5 55.6% 0 0% 7 43.8% 10 66.7% 400 68.1% 449 73.2% 240 36.7% 496 61.2% 402 58.3% 728 57.3% 30 to 50 years old 227 19.6% 243 20.3% 173 15.1% 226 20.4% 150 13.8% 225 15.8% 179 14.8% 139 12.0% 181 16.1% 186 21.0% 11 23.9% 3 6.7% 5 11.1% 3 6.4% 24 41.4% 238 22.7% 223 21.2% 177 15.8% 305 26.5% 300 28.8% 701 19.1% Over 50 years old 55 8.7% 54 8.6% 55 7.7% 116 16.5% 82 11.2% 15 6.9% 16 9.1% 8 5.2% 11 7.8% 8 10.1% 4 16.0% 2 10.0% 3 15.0% 0 0% 2 8.3% 28 11.9% 39 18.4% 37 16.8% 42 19.5% 74 40.2% 102 9.2% By geographical region Hong Kong 476 22.9% 447 21.2% 354 16.4% 500 23.5% 400 18.8% - - - - - - - - - - - - - - - - - - - - 186 26.7% 213 29.7% 61 7.6% 221 26.4% 341 40.6% 662 23.9% Chinese Mainland - - - - - - - - - - 372 18.5% 348 20.1% 261 15.6% 323 19.5% 341 26.2% - - - - - - - - - - 318 33.9% 329 35.0% 295 30.6% 439 44.3% 253 35.5% 690 23.4% Miami, U.S.A. - - - - - - - - - - - - - - - - - - - - 17 21.3% 10 13.5% 8 10.7% 10 11.8% 36 37.1% 162 68.1% 169 76.5% 98 43.8% 183 52.7% 182 50.1% 179 56.3% Others 0 0% 0 0% 0 0% 0 0% 1 20.0% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0% By management level Management 108 19.9% 94 16.8% 55 9.6% - - 161 21.4% 113 18.1% 46 8.2% - - 9 22.5% 2 6.1% 5 15.6% - - 96 19.4% 92 19.7% 59 12.6% - - 374 20.4% Non-management 368 23.9% 353 22.8% 299 18.8% - - 211 16.7% 235 21.2% 215 19.4% - - 8 20.0% 8 19.5% 3 7.0% - - 570 41.4% 619 43.9% 395 25.9% - - 1,157 27.4% Percentage of open positions filled by 25.9% 37.3% 28.9% - - 33.1% 32.3% 35.0% - - 37.0% 37.5% 75.0% - - 29.3% 36.0% 26.9% - - 29.0% internal candidates Turnover Total number and rate of voluntary 386 18.5% 415 19.7% 215 9.9% 369 17.3% 380 17.8% 230 11.4% 251 14.5% 176 10.5% 240 14.5% 228 17.5% 11 13.8% 6 8.1% 1 1.3% 17 20.0% 18 18.6% 497 26.5% 677 36.1% 417 20.9% 636 29.2% 658 34.4% 1,124 18.6% turnover(³) By gender Male 182 14.2% 251 19.0% 126 9.1% 214 15.6% 204 14.8% 129 10.1% 144 13.2% 105 9.8% 132 12.7% 140 17.4% 4 8.3% 4 9.5% 1 2.1% 8 15.7% 8 14.5% 249 25.4% 326 33.2% 207 20.1% 334 29.9% 305 30.8% 564 15.7% Female 204 25.4% 164 20.8% 89 11.4% 155 20.4% 176 23.3% 101 13.6% 107 16.7% 71 11.8% 108 17.5% 88 17.7% 7 21.9% 2 6.3% 0 0% 9 26.5% 10 23.8% 248 27.8% 351 39.3% 210 21.8% 302 28.5% 353 38.2% 560 22.7% By age group Under 30 years old 107 36.1% 117 41.2% 55 18.2% 94 29.5% 126 39.3% 86 22.7% 95 27.3% 74 20.4% 104 26.6% 108 32.2% 1 11.1% 3 33.3% 0 0% 3 18.8% 1 6.7% 303 51.6% 364 59.4% 233 35.6% 343 42.3% 313 45.4% 497 39.1% 30 to 50 years old 230 19.9% 230 19.2% 123 10.7% 179 16.2% 168 15.5% 132 9.3% 150 12.4% 99 8.6% 132 11.7% 118 13.3% 7 15.2% 3 6.7% 1 2.2% 12 25.5% 10 17.2% 184 17.5% 258 24.5% 161 14.4% 259 22.5% 302 29.0% 553 15.1% Over 50 years old 49 7.8% 68 10.8% 37 5.2% 96 13.6% 86 11.8% 12 5.5% 6 3.4% 3 1.9% 4 2.8% 2 2.5% 3 12.0% 0 0% 0 0% 2 9.1% 7 29.2% 10 4.2% 55 25.9% 23 10.5% 34 15.8% 43 23.4% 74 6.7% By geographical region Hong Kong 386 18.6% 415 19.7% 215 10.0% 369 17.4% 379 17.8% - - - - - - - - - - - - - - - - - - - - 200 28.7% 254 35.5% 89 11.1% 211 25.2% 263 31.3% 586 21.1% Chinese Mainland - - - - - - - - - - 230 11.4% 251 14.5% 176 10.5% 240 14.5% 228 17.5% - - - - - - - - - - 219 23.3% 305 32.5% 257 26.6% 325 32.8% 259 36.4% 449 15.2% Miami, U.S.A. - - - - - - - - - - - - - - - - - - - - 11 13.8% 6 8.1% 1 1.3% 17 20.0% 18 18.6% 78 32.8% 118 53.4% 71 31.7% 100 28.8% 136 37.5% 89 28.0% Others 0 0% 0 0% 0 0% 0 0% 1 20.0% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0% By management level Management 112 20.6% 100 17.9% 50 8.7% - - 79 10.5% 74 11.8% 33 5.9% - - 6 15.0% 1 3.0% 1 3.1% - - 70 14.1% 109 23.3% 63 13.4% - - 267 14.6% Non-management 274 17.8% 315 20.3% 165 10.4% - - 151 11.9% 177 16.0% 143 25.4% - - 5 12.5% 5 12.2% 0 0% - - 427 31.0% 568 40.3% 354 23.2% - - 857 20.3% Total number and rate of total 496 23.8% 491 23.3% 319 14.7% 509 23.9% 437 20.5% 267 13.2% 303 17.5% 245 14.7% 325 19.6% 270 20.8% 12 15.0% 12 16.2% 10 13.3% 22 25.9% 33 34.0% 670 35.8% 828 44.1% 636 31.9% 855 39.3% 861 45.0% 1,445 23.9% turnover(4) SUSTAINABLE DEVELOPMENT REPORT 2022 283
MENUPLACESPEOPLEPARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Performance Data Summary (Social) Hong Kong PortfolioChinese Mainland Portfolio U.S.A. Portfolio Hotels Total 202220212020201920182022202120202019201820222021 2020 2019 2018 2022 2021 2020 2019 2018 2022 Workforce Profile Total workforce2,3382,3452,4202,3732,3702,0161,7321,6711,6571,300807475 85 97 1,973 2,051 2,168 2,350 2,113 6,407 By gender Male1,48563.5%1,50764.3%1,57865.2%1,55865.7%1,56566.0%1,27663.3%1,09062.9%1,06863.9%1,04162.8%80461.8%4860.0%4256.8%4762.7%5160.0%5556.7%1,02051.7%1,04551.0%1,09250.4%1,17750.1%1,066 50.4% 3,829 59.8% Female85336.5%83835.7%84234.8%81534.3%80534.0%74036.7%64237.1%60336.1%61637.2%49638.2%3240.0%3243.2%2837.3%3440.0%4243.3%95348.3%1,00649.0% 1,076 49.6% 1,173 49.9% 1,047 49.6% 2,578 40.2% By age group Under 30 years old31013.3%30212.9%32313.3%33414.1%33614.2%37918.8%34820.1%36221.7%39123.6%33525.8%911.3%912.2%1013.3%1618.8%1515.5%65633.2%74836.5%76535.3% 888 37.8% 774 36.6% 1,354 21.1% 30 to 50 years old1,16349.7%1,21051.6%1,17048.4%1,13047.6%1,10546.6%1,42070.4%1,20869.7%1,15469.1%1,12467.8%88668.2%4657.5%4560.8%4560.0%4755.3%5859.8%1,05453.4%1,05651.5%1,14853.0%1,21051.5%1,08851.5%3,68357.5% Over 50 years old86537.0%83335.5%92738.3%90938.3%92939.2%21710.8%17610.2%1559.3%1428.6%796.1%2531.3%2027.0%2026.7%2225.9%2424.7%26313.3%24712.0%255 11.8% 252 10.7% 251 11.9% 1,370 21.4% By geographical region Hong Kong2,33399.8%2,34099.8%2,41099.6%2,36499.6%2,36299.7%----------------- - - - 717 36.3% 742 36.2% 831 38.3% 866 36.9% 862 40.8% 3,050 47.6% Chinese Mainland----------2,016100%1,732100%1,671100%1,657100%1,300100%------- - - - 1,018 51.6% 1,083 52.8% 1,083 50.0% 1,080 46.0% 843 39.9% 3,034 47.4% Beijing----------63431.5%59334.2%55333.1%54633.0%52840.6%------ - - - - 407 20.6% 466 22.7% 476 22.0% 476 20.3% 516 24.4% 1,041 16.2% Shanghai----------61830.7%42924.8%42325.3%43626.3%816.2%----- - - - - - 287 14.6% 301 14.7% 296 13.7% 280 11.9% 0 0% 905 14.1% Guangdong province----------38619.1%38322.1%37022.1%35921.7%37128.5%------- - - - 0 0% 0 0% 0 0% 0 0% 0 0% 386 6.0% Sichuan province----------31915.8%32718.9%32519.5%31619.1%32024.6%------- - - - 324 16.4% 316 15.4% 311 14.3% 324 13.8% 327 15.5% 643 10.0% Other provinces----------592.9%00%00%00%00%---- - - - - - - 0 0% 0 0% 0 0% 0 0% 0 0% 59 0.9% Miami, U.S.A.--------------------80100%74100% 75 100% 85 100% 97 100% 238 12.1% 226 11.0% 254 11.7% 404 17.2% 408 19.3% 318 5.0% Others5(17)0.2%50.2%100.4%90.4%80.3%00%00%00%00%00%00%00%0 0% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0% 5 0.1% By employment contract(1) Permanent2,08389.1%2,10889.9%2,16489.4%2,13089.8%2,13590.1%2,016100%1,732100%1,671100%1,65699.9%1,300100%80100%74100%75100%85100%97100%1,87294.9%1,87691.5%1,99492.0%2,17692.6% 1,914 90.6% 6,051 94.4% Fixed term/temporary25510.9%23710.1%25610.6%24310.2%2359.9%00%00%00%10.1%00%00%00%00%00%0 0% 101 5.1% 175 8.5% 174 8.0% 174 7.4% 199 9.4% 356 5.6% Supervised worker----------------------- - - - - - - - - - - - - - - - - - - - Permanent employees by employment type Full-time2,02997.4%2,05597.5%2,10997.5%2,07797.5%2,08297.5%2,016100%1,732100%1,671100%1,656100%1,300100%80100%74100%75100%8498.8%9699.0%1,83397.9%1,84398.2%1,95698.1%2,13598.1%1,881 98.3% 5,958 98.5% Part-time542.6%532.5%552.5%532.5%532.5%00%00%00%00%00%00%00%00% 1 1.2% 1 1.0% 39 2.1% 33 1.8% 38 1.9% 41 1.9% 33 1.7% 93 1.5% New Hires Total number and rate of new hires(2)47622.9%44721.2%35416.4%50023.5%40118.8%37218.5%34820.1%26115.6%32319.5%34126.2%1721.3%1013.5%810.7%1011.8%3637.1%66635.6%71137.9%45422.8%84338.7%77640.5% 1,531 25.3% By gender Male22217.4%25219.1%21515.6%29321.4%25518.5%21116.5%20218.5%18517.3%17917.2%19123.8%1020.8%24.8%817.0%611.8%1934.5%32833.5%356 36.3% 223 21.7% 417 37.3% 341 34.4% 771 21.5% Female25431.6%19524.8%13917.8%20727.2%14619.4%16121.8%14622.7%7612.6%14423.4%15030.2%721.9%825%00%411.8%1740.5%33837.9% 355 39.7% 231 23.9% 426 40.2% 435 47.1% 760 30.8% By age group Under 30 years old 19465.5%15052.8%12641.7%15849.5%16952.6%13234.8%15344.0%11431.5%13133.5%14743.9%222.2%555.6%00%743.8%1066.7%40068.1%44973.2%240 36.7% 496 61.2% 402 58.3% 728 57.3% 30 to 50 years old 22719.6%24320.3%17315.1%22620.4%15013.8%22515.8%17914.8%13912.0%18116.1%18621.0%1123.9%36.7%511.1%36.4%2441.4%23822.7%22321.2%17715.8% 305 26.5% 300 28.8% 701 19.1% Over 50 years old 558.7%548.6%557.7%11616.5%8211.2%156.9%169.1%85.2%117.8%810.1%416.0%210.0%315.0%00%28.3%28 11.9% 39 18.4% 37 16.8% 42 19.5% 74 40.2% 102 9.2% By geographical region Hong Kong47622.9%44721.2%35416.4%50023.5%40018.8%---------------- - - - - 186 26.7% 213 29.7% 61 7.6% 221 26.4% 341 40.6% 662 23.9% Chinese Mainland----------37218.5%34820.1%26115.6%32319.5%34126.2%------- - - - 318 33.9% 329 35.0% 295 30.6% 439 44.3% 253 35.5% 690 23.4% Miami, U.S.A.--------------------1721.3%1013.5% 8 10.7% 10 11.8% 36 37.1% 162 68.1% 169 76.5% 98 43.8% 183 52.7% 182 50.1% 179 56.3% Others 00%00%00%00%120.0%00%00%00%00%00%00%00% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0% By management level Management 10819.9%9416.8%559.6%--16121.4%11318.1%468.2%--922.5%26.1%515.6%- - 96 19.4% 92 19.7% 59 12.6% - - 374 20.4% Non-management 36823.9%35322.8%29918.8%--21116.7%23521.2%21519.4%--820.0%819.5%37.0%- - 570 41.4% 619 43.9% 395 25.9% - - 1,157 27.4% Percentage of open positions filled by 25.9%37.3%28.9%--33.1%32.3%35.0%--37.0%37.5%75.0%- - 29.3% 36.0% 26.9% - - 29.0% internal candidates Turnover Total number and rate of voluntary 38618.5%41519.7%2159.9%36917.3%38017.8%23011.4%25114.5%17610.5%24014.5%22817.5%1113.8%68.1%11.3%1720.0%1818.6%49726.5%67736.1%41720.9%63629.2%658 34.4% 1,124 18.6% turnover(³) By gender Male18214.2%25119.0%1269.1%21415.6%20414.8%12910.1%14413.2%1059.8%13212.7%14017.4%48.3%49.5%12.1%815.7%814.5%24925.4% 326 33.2% 207 20.1% 334 29.9% 305 30.8% 564 15.7% Female20425.4%16420.8%8911.4%15520.4%17623.3%10113.6%10716.7%7111.8%10817.5%8817.7%721.9%26.3%00%926.5%1023.8%24827.8% 351 39.3% 210 21.8% 302 28.5% 353 38.2% 560 22.7% By age group Under 30 years old10736.1%11741.2%5518.2%9429.5%12639.3%8622.7%9527.3%7420.4%10426.6%10832.2%111.1%333.3%00%318.8%16.7%30351.6%364 59.4% 233 35.6% 343 42.3% 313 45.4% 497 39.1% 30 to 50 years old 23019.9%23019.2%12310.7%17916.2%16815.5%1329.3%15012.4%998.6%13211.7%11813.3%715.2%36.7%12.2%1225.5%1017.2%18417.5%25824.5%161 14.4% 259 22.5% 302 29.0% 553 15.1% Over 50 years old497.8%6810.8%375.2%9613.6%8611.8%125.5%63.4%31.9%42.8%22.5%312.0%00%00%29.1%7 29.2% 10 4.2% 55 25.9% 23 10.5% 34 15.8% 43 23.4% 74 6.7% By geographical region Hong Kong38618.6%41519.7%21510.0%36917.4%37917.8%---------------- - - - - 200 28.7% 254 35.5% 89 11.1% 211 25.2% 263 31.3% 586 21.1% Chinese Mainland----------23011.4%25114.5%17610.5%24014.5%22817.5%------- - - - 219 23.3% 305 32.5% 257 26.6% 325 32.8% 259 36.4% 449 15.2% Miami, U.S.A.--------------------1113.8%6 8.1% 1 1.3% 17 20.0% 18 18.6% 78 32.8% 118 53.4% 71 31.7% 100 28.8% 136 37.5% 89 28.0% Others 00%00%00%00%120.0%00%00%00%00%00%00%00% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0% By management level Management 11220.6%10017.9%508.7%--7910.5%7411.8%335.9%--615.0%13.0%13.1% - - 70 14.1% 109 23.3% 63 13.4% - - 267 14.6% Non-management 27417.8%31520.3%16510.4%--15111.9%17716.0%14325.4%--512.5%512.2%00%- - 427 31.0% 568 40.3% 354 23.2% - - 857 20.3% Total number and rate of total 49623.8%49123.3%31914.7%50923.9%43720.5%26713.2%30317.5%24514.7%32519.6%27020.8%1215.0%1216.2%1013.3%2225.9%3334.0%67035.8%82844.1%63631.9%85539.3%861 45.0% 1,445 23.9% turnover(4) SUSTAINABLE DEVELOPMENT REPORT 2022 283
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Performance Data Summary (Social) Hong Kong Portfolio Chinese Mainland Portfolio U.S.A. Portfolio Hotels Total 2022 2021 2020 2019 2018 2022 2021 2020 2019 2018 2022 2021 2020 2019 2018 2022 2021 2020 2019 2018 2022 Promotion Total number and rate of employees 154 6.6% 142 6.1% 96 4.0% 189 8.0% - 152 7.5% 129 7.4% 120 7.2% 184 11.1% - 9 11.3% 6 8.1% 6 8.0% 7 8.2% - 203 10.3% 286 13.9% 190 8.8% 352 15.0% - 518 8.1% promotion By gender Male 83 5.6% 95 6.3% 69 4.4% 126 8.1% - 91 7.1% 71 6.5% 70 6.6% 107 10.3% - 6 12.5% 4 9.5% 2 4.3% 4 7.8% - 108 10.6% 139 13.3% 86 7.9% 185 15.7% - 288 7.5% Female 71 8.3% 47 5.6% 27 3.2% 63 7.7% - 61 8.2% 58 9.0% 50 8.3% 44 7.1% - 3 9.4% 2 6.3% 4 14.3% 3 8.8% - 95 10.0% 147 14.6% 104 9.7% 167 14.2% - 230 8.9% By age group Under 30 years old 26 8.4% 36 11.9% 25 7.7% 50 15.0% - 45 11.9% 29 8.3% 23 6.4% 56 10.3% - 1 11.1% 1 11.1% 0 0% 4 25.0% - 108 16.5% 171 22.9% 128 16.7% 198 22.3% - 180 13.3% 30 to 50 years old 109 9.4% 86 7.1% 59 5.0% 110 9.7% - 103 7.3% 94 7.8% 93 8.1% 124 28.4% - 6 13.0% 4 8.9% 6 13.3% 3 6.4% - 93 8.8% 109 10.3% 60 5.2% 148 12.2% - 311 8.4% Over 50 years old 19 2.2% 20 2.4% 12 1.3% 29 3.2% - 4 1.8% 6 3.4% 4 2.6% 4 1.1% - 2 8.0% 1 5% 0 0% 0 0% - 2 0.8% 6 2.4% 2 0.8% 6 2.4% - 27 2.0% By management level Management 84 14.7% - - - - 71 9.5% - - - - 8 20.0% - - - - 77 15.5% - - - - 240 12.9% Non-management 70 4.0% - - - - 81 6.4% - - - - 1 2.5% - - - - 126 8.5% - - - - 278 6.1% Performance Review Total number and percentage of employees receiving regular 2,273 97.2% 2,276 97.1% 2,343 96.8% 2,302 97.0% 2,302 97.1% 2,003 99.4% 1,732 100% 1,671 100% 1,656 99.9% 1,262 97.1% 80 100% 74 100% 75 100% 84 98.8% 97 100% 1,891 95.8% 1,715 83.6% 1,830 84.4% 2,053 87.4% 1,807 85.5% 6,247 97.5% performance review By gender Male 1,469 98.9% 1,484 98.5% 1,552 98.4% 1,532 98.3% 1,537 98.2% 1,269 99.5% 1,090 100% 1,068 100% 1,040 99.9% 791 98.4% 48 100% 42 100% 47 100% 51 100% 55 100% 980 96.1% 896 85.7% 944 86.4% 1,057 89.8% 943 88.5% 3,766 98.4% Female 804 94.3% 792 94.5% 791 93.9% 770 94.5% 765 95.0% 734 99.2% 642 100% 603 100% 616 100% 471 95.0% 32 100% 32 100% 28 100% 33 97.1% 42 100% 911 95.6% 819 81.4% 886 82.3% 996 84.9% 864 82.5% 2,481 96.2% By management role Management 573 100% 584 100% 598 100% 572 100% 570 99.3% 739 98.4% 626 100% 564 100% 535 99.8% 426 93.0% 40 100% 33 100% 32 100% 29 100% 42 100% 496 99.8% 435 92.6% 471 98.9% 474 97.1% 399 98.5% 1,848 99.3% Non-management 1,700 96.3% 1,692 96.1% 1,745 95.8% 1,730 96.1% 1,732 96.4% 1,264 99.9% 1,106 100% 1,107 100% 1,121 100% 836 99.3% 40 100% 41 100% 43 100% 55 98.2% 55 100% 1,395 94.5% 1,280 81.0% 1,359 80.3% 1,579 84.8% 1,408 82.4% 4,399 96.8% Diversity Females in management positions (as % 52.2% 51.7% 52.0% 51.6% 50.7% 55.4% 58.0% 58.0% 58.6% 58.3% 40.0% 42.4% 40.6% 41.4% 42.9% 46.1% 46.6% 46.6% 45.9% 47.4% 51.6% of total management workforce) Females in senior management positions (as % of total senior 52.0% 61.9% 61.9% 57.1% 57.1% 29.4% 40.0% 41.7% 46.2% 35.3% 0.0% 42.9% 50.0% 57.1% 55.6% 0.0% 29.4% 21.4% 28.6% 38.5% 38.3% management workforce) Females in middle management positions (as % of total middle 65.6% 61.8% 65.7% 66.7% 65.6% 37.5% 28.6% 16.7% 13.3% 0% 37.5% - - - - 52.5% 49.0% 54.0% 50.0% 48.8% 54.1% management workforce) Females in junior management positions (as % of total junior 51.4% 50.7% 50.7% 50.4% 49.5% 56.2% 58.8% 58.8% 60.2% 59.5% 43.3% 42.3% 37.5% 36.4% 39.4% 45.5% 47.0% 46.6% 46.0% 47.6% 51.8% management workforce) Females in non-management positions (as % of total non-management 31.4% 30.4% 29.1% 28.9% 28.6% 25.6% 25.2% 24.9% 26.9% 27.2% 40.0% 43.9% 34.9% 39.3% 43.6% 49.1% 49.8% 50.5% 51.0% 50.1% 35.6% workforce) Females in management positions in revenue-generating functions (as % of 50.1% 52.0% 50.2% 49.5% 49.4% 53.2% 57.9% 64.7% 50.0% 41.3% 41.7% 60.0% 100% 55.6% 44.4% 48.7% 44.0% 45.5% 48.4% 48.9% 51.9% total revenue-generating management workforce) Females in STEM-related positions (as % 24.7% 23.6% - - - 42.5% 34.3% - - - 60.9% 31.3% - - - 44.1% 40.2% - - - 35.4% of total STEM-related positions) Females in IT-related positions (as % of 32.0% 32.5% - - - 21.0% 17.9% - - - 0.0% 0.0% - - - 13.6% 0.0% - - - 22.9% total IT-related positions) Females in engineering-related positions (as % of total engineering- 11.3% 11.5% - - - 13.2% 9.0% - - - 0.0% 0.0% - - - 5.7% 7.5% - - - 11.7% related positions) Gender Pay Ratio (Female to Male)(5) Total workforce 1 : 0.84 1 : 0.81 1 : 0.79 1 : 0.78 1 : 0.78 1 : 0.79 1 : 0.78 1 : 0.73 1 : 0.75 1 : 0.90 1 : 0.94 1 : 0.97 1 : 0.90 1 : 0.96 1 : 1.01 1 : 1.12 1 : 1.16 1 : 1.14 1 : 1.13 1 : 1.11 1 : 0.92 By management role Management 1 : 1.05 1 : 1.03 1 : 1.05 1 : 1.02 1 : 1.04 1 : 1.40 1 : 1.48 1 : 1.45 1 : 1.44 1 : 1.70 1 : 0.97 1 : 1.00 1 : 0.95 1 : 1.06 1 : 1.10 1 : 1.15 1 : 1.17 1 : 1.21 1 : 1.15 1 : 1.13 1 : 1.18 Non-management 1 : 1.07 1 : 1.04 1 : 1.03 1 : 1.04 1 : 0.97 1 : 0.88 1 : 0.88 1 : 0.81 1 : 0.89 1 : 1.02 1 : 0.87 1 : 0.86 1 : 0.87 1 : 0.90 1 : 0.85 1 : 1.04 1 : 1.07 1 : 1.02 1 : 1.04 1 : 1.05 1 : 1.04 Gender Remuneration Ratio 1 : 0.88 1 : 0.84 1 : 0.78 1 : 0.80 1 : 0.79 1 : 0.84 1 : 0.82 1 : 0.79 1 : 0.83 1 : 1.06 1 : 1.01 1 : 1.00 1 : 0.85 1 : 0.94 1 : 0.96 1 : 1.17 1 : 1.21 1 : 1.18 1 : 1.20 1 : 1.12 1 : 0.98 (Female to Male) By management role Management 1 : 1.06 1 : 1.03 1 : 0.97 1 : 0.99 1 : 1.00 1 : 1.42 1 : 1.51 1 : 1.56 1 : 1.55 1 : 2.07 1 : 1.05 1 : 1.04 1 : 0.89 1 : 1.05 1 : 1.07 1 : 1.20 1 : 1.21 1 : 1.27 1 : 1.25 1 : 1.17 1 : 1.21 Non-management 1 : 1.22 1 : 1.16 1 : 1.14 1 : 1.18 1 : 1.09 1 : 0.98 1 : 0.97 1 : 0.88 1 : 0.95 1 : 1.08 1 : 0.87 1 : 0.87 1 : 0.85 1 : 0.87 1 : 0.77 1 : 1.09 1 : 1.14 1 : 1.03 1 : 1.10 1 : 1.05 1 : 1.15 SUSTAINABLE DEVELOPMENT REPORT 2022 284
MENUPLACESPEOPLEPARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Performance Data Summary (Social) Hong Kong PortfolioChinese Mainland Portfolio U.S.A. Portfolio Hotels Total 202220212020201920182022202120202019201820222021 2020 2019 2018 2022 2021 2020 2019 2018 2022 Promotion Total number and rate of employees 1546.6%1426.1%964.0%1898.0%-1527.5%1297.4%1207.2%18411.1%-911.3%68.1%68.0%78.2%-20310.3%28613.9% 190 8.8% 352 15.0% - 518 8.1% promotion By gender Male835.6%956.3%694.4%1268.1%-917.1%716.5%706.6%10710.3%-612.5%49.5%24.3%47.8% - 108 10.6% 139 13.3% 86 7.9% 185 15.7% - 288 7.5% Female718.3%475.6%273.2%637.7%-618.2%589.0%508.3%447.1%-39.4%26.3%414.3%38.8% - 95 10.0% 147 14.6% 104 9.7% 167 14.2% - 230 8.9% By age group Under 30 years old268.4%3611.9%257.7%5015.0%-4511.9%298.3%236.4%5610.3%-111.1%111.1%00%425.0%- 108 16.5% 171 22.9% 128 16.7% 198 22.3% - 180 13.3% 30 to 50 years old 1099.4%867.1%595.0%1109.7%-1037.3%947.8%938.1%12428.4%-613.0%48.9%613.3%36.4%- 93 8.8% 109 10.3% 60 5.2% 148 12.2% - 311 8.4% Over 50 years old192.2%202.4%121.3%293.2%-41.8%63.4%42.6%41.1%-28.0%15%00%00% - 2 0.8% 6 2.4% 2 0.8% 6 2.4% - 27 2.0% By management level Management 8414.7%----719.5%----820.0%- - - - 77 15.5% - - - - 240 12.9% Non-management 704.0%----816.4%----12.5%- - - - 126 8.5% - - - - 278 6.1% Performance Review Total number and percentage of employees receiving regular 2,27397.2%2,27697.1%2,34396.8%2,30297.0%2,30297.1%2,00399.4%1,732100%1,671100%1,65699.9%1,26297.1%80100%74100%75100%8498.8%97100%1,89195.8%1,71583.6%1,83084.4%2,05387.4%1,80785.5%6,24797.5% performance review By gender Male1,46998.9%1,48498.5%1,55298.4%1,53298.3%1,53798.2%1,26999.5%1,090100%1,068100%1,04099.9%79198.4%48100%42100%47100%51100%55100%98096.1%89685.7%94486.4%1,05789.8% 943 88.5% 3,766 98.4% Female80494.3%79294.5%79193.9%77094.5%76595.0%73499.2%642100%603100%616100%47195.0%32100%32100%28100%3397.1%42100%91195.6%81981.4% 886 82.3% 996 84.9% 864 82.5% 2,481 96.2% By management role Management 573100%584100%598100%572100%57099.3%73998.4%626100%564100%53599.8%42693.0%40100%33100%32100%29100%42100%49699.8%43592.6% 471 98.9% 474 97.1% 399 98.5% 1,848 99.3% Non-management 1,70096.3%1,69296.1%1,74595.8%1,73096.1%1,73296.4%1,26499.9%1,106100%1,107100%1,121100%83699.3%40100%41100%43100%5598.2%55100%1,39594.5%1,28081.0%1,35980.3%1,57984.8%1,40882.4%4,39996.8% Diversity Females in management positions (as % 52.2%51.7%52.0%51.6%50.7%55.4%58.0%58.0%58.6%58.3%40.0%42.4%40.6%41.4%42.9%46.1% 46.6% 46.6% 45.9% 47.4% 51.6% of total management workforce) Females in senior management positions (as % of total senior 52.0%61.9%61.9%57.1%57.1%29.4%40.0%41.7%46.2%35.3%0.0%42.9%50.0%57.1%55.6%0.0% 29.4% 21.4% 28.6% 38.5% 38.3% management workforce) Females in middle management positions (as % of total middle 65.6%61.8%65.7%66.7%65.6%37.5%28.6%16.7%13.3%0%37.5%--- - 52.5% 49.0% 54.0% 50.0% 48.8% 54.1% management workforce) Females in junior management positions (as % of total junior 51.4%50.7%50.7%50.4%49.5%56.2%58.8%58.8%60.2%59.5%43.3%42.3%37.5%36.4%39.4%45.5% 47.0% 46.6% 46.0% 47.6% 51.8% management workforce) Females in non-management positions (as % of total non-management 31.4%30.4%29.1%28.9%28.6%25.6%25.2%24.9%26.9%27.2%40.0%43.9%34.9%39.3%43.6%49.1% 49.8% 50.5% 51.0% 50.1% 35.6% workforce) Females in management positions in revenue-generating functions (as % of 50.1%52.0%50.2%49.5%49.4%53.2%57.9%64.7%50.0%41.3%41.7%60.0%100%55.6%44.4%48.7% 44.0% 45.5% 48.4% 48.9% 51.9% total revenue-generating management workforce) Females in STEM-related positions (as % 24.7%23.6%---42.5%34.3%---60.9%31.3%-- - 44.1% 40.2% - - - 35.4% of total STEM-related positions) Females in IT-related positions (as % of 32.0%32.5%---21.0%17.9%---0.0%0.0%-- - 13.6% 0.0% - - - 22.9% total IT-related positions) Females in engineering-related positions (as % of total engineering-11.3%11.5%---13.2%9.0%---0.0%0.0%-- - 5.7% 7.5% - - - 11.7% related positions) Gender Pay Ratio (Female to Male)(5) Total workforce1 : 0.841 : 0.811 : 0.791 : 0.781 : 0.781 : 0.791 : 0.781 : 0.731 : 0.751 : 0.901 : 0.941 : 0.971 : 0.901 : 0.961 : 1.011 : 1.121 : 1.161 : 1.141 : 1.13 1 : 1.11 1 : 0.92 By management role Management 1 : 1.051 : 1.031 : 1.051 : 1.021 : 1.041 : 1.401 : 1.481 : 1.451 : 1.441 : 1.701 : 0.971 : 1.001 : 0.951 : 1.061 : 1.101 : 1.151 : 1.171 : 1.211 : 1.15 1 : 1.13 1 : 1.18 Non-management1 : 1.071 : 1.041 : 1.031 : 1.041 : 0.971 : 0.881 : 0.881 : 0.811 : 0.891 : 1.021 : 0.871 : 0.861 : 0.871 : 0.901 : 0.851 : 1.041 : 1.071 : 1.021 : 1.04 1 : 1.05 1 : 1.04 Gender Remuneration Ratio 1 : 0.881 : 0.841 : 0.781 : 0.801 : 0.791 : 0.841 : 0.821 : 0.791 : 0.831 : 1.061 : 1.011 : 1.001 : 0.851 : 0.941 : 0.961 : 1.171 : 1.211 : 1.181 : 1.201 : 1.121 : 0.98 (Female to Male) By management role Management 1 : 1.061 : 1.031 : 0.971 : 0.991 : 1.001 : 1.421 : 1.511 : 1.561 : 1.551 : 2.071 : 1.051 : 1.041 : 0.891 : 1.051 : 1.071 : 1.201 : 1.211 : 1.271 : 1.25 1 : 1.17 1 : 1.21 Non-management 1 : 1.221 : 1.161 : 1.141 : 1.181 : 1.091 : 0.981 : 0.971 : 0.881 : 0.951 : 1.081 : 0.871 : 0.871 : 0.851 : 0.871 : 0.771 : 1.091 : 1.141 : 1.031 : 1.10 1 : 1.05 1 : 1.15 SUSTAINABLE DEVELOPMENT REPORT 2022 284
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Performance Data Summary (Social) Hong Kong Portfolio Chinese Mainland Portfolio U.S.A. Portfolio Hotels Total 2022 2021 2020 2019 2018 2022 2021 2020 2019 2018 2022 2021 2020 2019 2018 2022 2021 2020 2019 2018 2022 Training Total number and percentage of 2,208 94.4% 2,165 92.3% 2,229 92.1% 2,147 90.5% 1,830 77.2% 1,947 96.6% 1,679 96.9% 1,647 98.6% 1,570 94.7% 1,232 94.8% 80 100% 74 100% 75 100% 85 100% 97 100% 1,972 100% 2,048 99.9% 2,124 98.0% 2,350 100% 2,113 100% 6,207 96.9% employees received training By gender Male 1,421 95.7% 1,411 93.6% 1,464 92.8% 1,408 90.4% 1,208 77.2% 1,232 96.6% 1,064 97.6% 1,050 98.3% 997 95.8% 763 94.9% 48 100% 42 100% 47 100% 51 100% 55 100% 1,020 100% 1,043 99.8% 1,077 98.6% 1,177 100% 1,066 100% 3,721 97.2% Female 787 92.3% 754 90.0% 765 90.9% 739 90.7% 622 77.3% 715 96.6% 615 95.8% 597 99.0% 573 93.0% 469 94.6% 32 100% 32 100% 28 100% 34 100% 42 100% 952 100% 1,005 99.9% 1,047 97.3% 1,173 100% 1,047 100% 2,486 96.4% By management role Management 563 98.3% 552 94.5% 579 96.8% 562 98.3% 543 94.6% 700 93.2% 585 93.5% 546 96.8% 475 88.6% 407 88.9% 40 100% 33 100% 32 100% 29 100% 42 100% 496 100% 467 99.4% 474 99.6% 488 100% 405 100% 1,799 96.7% Non-management 1,645 93.2% 1,613 91.6% 1,650 90.6% 1,585 88.0% 1,287 71.7% 1,247 98.6% 1,094 98.9% 1,101 99.5% 1,095 97.7% 825 98.0% 40 100% 41 100% 43 100% 56 100% 55 100% 1,476 100% 1,581 100% 1,650 97.5% 1,862 100% 1,708 100% 4,408 97.0% Total training hours 29,707 22,484 24,293 41,865 34,251 33,523 29,513 23,711 33,120 26,190 1,195 740 832 597 867 89,356 111,042 77,804 93,958 67,479 153,781 Total training hours by type of training Mandatory 16,388.8 55.2% 10,289.1 45.8% 7,533.5 31.0% - - 21,853.9 65.2% 20,212.7 68.5% 16,332.4 68.9% - - 1,195.0 100% 296.0 40.0% 720.0 86.5% - - 48,973.8 54.8% 43,951.6 39.6% 12,361.4 15.9% - - 88,411.5 57.5% Non-mandatory 13,318.6 44.8% 12,194.9 54.2% 16,759.5 69.0% - - 11,668.7 34.8% 9,300.5 31.5% 7,378.7 31.1% - - 0 0% 444.0 60.0% 112.0 13.5% - - 40,382.4 45.2% 67,089.9 60.4% 65,442.9 84.1% - - 65,369.7 42.5% Average training hours By employee 12.7 9.6 10.0 17.6 14.5 16.6 17.0 14.2 20.0 20.1 14.9 10.0 11.1 7.0 8.9 45.3 54.1 35.9 40.0 31.9 24.0 By gender Male 12.3 8.8 9.4 15.9 13.2 16.8 17.7 14.8 18.9 20.2 14.9 10.0 12.3 2.9 8.9 44.3 54.2 34.2 37.5 29.3 22.4 Female 13.3 11.0 11.3 21.0 16.9 16.3 15.9 13.1 21.8 20.1 14.9 10.0 9.0 13.2 8.9 46.4 54.1 37.6 42.5 34.6 26.4 By age group Under 30 years old 13.1 10.5 21.1 - - 16.8 17.5 14.3 - - 14.9 10.0 8.8 - - 52.8 59.5 41.6 - - 33.4 30 to 50 years old 15.5 12.2 11.1 - - 16.8 17.3 14.5 - - 14.9 10.0 11.7 - - 44.7 55.0 35.0 - - 24.3 Over 50 years old 8.8 5.4 4.8 - - 15.3 14.6 11.5 - - 14.9 10.0 10.8 - - 29.1 34.2 22.6 - - 13.8 By management role Management 18.9 19.0 20.7 32.6 34.8 14.6 14.7 12.5 22.0 20.0 14.9 10.0 12.8 14.9 8.9 42.8 58.2 30.3 34.0 34.7 23.5 Non-management 10.7 6.5 6.5 12.9 7.9 17.8 18.3 15.0 19.0 20.2 14.9 10.0 9.9 2.9 8.9 46.1 52.9 37.5 41.6 31.3 24.2 Total training spend (million HK$) 3.2 4.1 2.9 3.8 4.0 1.6 2.3 1.1 2.7 2.3 1.3 0.5 0.1 - 1.2 1.6 1.2 0.8 1.5 1.6 7.7 Training by related-topics Information and cyber security related training Total training hours for employees 954.8 675.8 958.8 - - 3,159.5 850.6 1,190.3 - - 80.0 74.0 75.0 - - 4,325.2 1,723.0 2,462.9 - - 8,519.4 Corporate social responsibility related training Total training hours for employees 846.0 423.9 515.5 3,570.0 5,548.0 1,908.3 2,111.3 1,645.2 4,127.3 2,433.9 80.0 0.0 75.0 15.0 122.0 4,621.5 1,399.0 2,073.8 3,394.0 3,170.8 7,455.8 Total training hours for new hires (SD 667.0 112.0 118.0 606.0 257.0 374.2 787.0 614.2 717.0 483.0 0.0 0.0 8.0 9.0 72.0 386.5 365.3 1,276.3 1,875.0 119.3 1,427.7 training in induction programme) Health and safety related training Total training hours on health and 9,640.0 2,867.8 5,719.8 11,595.5 4,342.3 15,998.8 15,214.9 13,876.6 11,753.9 10,329.5 80.0 222.0 75.0 21.0 135.0 8,333.3 8,345.3 4,201.8 5,241.4 5,848.2 34,052.1 safety Average training hours on health 4.1 1.2 2.4 4.9 1.8 7.9 8.8 8.3 7.1 7.9 1.0 3.0 1.0 0.2 1.4 4.2 4.1 1.9 2.2 2.8 5.3 and safety per employee Human rights related training Total training hours on human rights 6,320.5 3,507.0 3,040.0 2,910.0 1,881.3 5,984.2 2,568.7 3,015.6 1,709.3 1,794.5 400.0 158.0 75.0 5.0 388.0 5,214.4 6,999.0 5,022.1 4,654.9 1,654.0 17,919.0 related topics Percentage of employees received 2,128 91.0% 1,888 80.5% 2,097 86.7% 1,956 82.4% 787 33.2% 1,909 94.7% 1,574 90.9% 1,645 98.4% 838 50.6% 1,083 83.3% 80 100% 74 100% 75 100% 70 82.4% 97 100% 1,973 100% 1,938 94.5% 1,852 85.4% 1,588 67.6% 1,196 56.6% 6,090 95.1% human rights related training Unconscious bias related training Total training hours on unconscious 1,490.0 - - - - 1,439.5 - - - - 720.0 - - - - 2,005.5 - - - - 5,655.0 bias related topics Percentage of employees received 1,609 68.8% - - - - 1,606 79.7% - - - - 80 100% - - - - 1,973 100% - - - - 5,268 82.2% unconscious bias related training By management role Management 511 89.2% - - - - 519 69.1% - - - - 40 100% - - - - 497 100% - - - - 1,567 84.2% Non-management 1,098 62.2% - - - - 1,087 85.9% - - - - 40 100% - - - - 1,476 100% - - - - 3,701 81.4% Anti-corruption related training Total training hours on anti- 1,857.3 2,446.0 684.8 1,959.0 999.8 3,143.7 1,901.2 1,341.4 1,406.5 1,703.5 80.0 - - 7.0 194.0 3,610.2 6,173.5 3,274.8 3,290.0 1,732.0 8,691.1 corruption related topics Percentage of employees received 1,335 57.1% 1,815 77.4% 1,984(18) 82.0% 1,940 81.8% 617 26.0% 1,923 95.4% 1,270 73.3% 1,292 77.3% 751 45.3% 1,119 86.1% 80 100% - - 80 94.1% 97 100% 1,939 98.3% 1,948 95.0% 1,427 65.8% 1,547 65.8% 1,086 51.4% 5,277 82.4% anti-corruption related training By management role Management 316 55.1% 472 80.8% 526(18) 88.0% 526 92.0% 236 41.1% 678 90.3% 376 60.1% 407 72.2% 259 48.3% 344 75.1% 40 100% - - 24 82.8% 42 100% 479 100% 462 98.3% 282 59.2% 374 76.6% 177 43.7% 1,513 81.3% Non-management 1,019 57.7% 1,343 76.3% 1,458(18) 80.0% 1,414 78.5% 381 21.2% 1,245 98.4% 894 80.8% 885 79.9% 492 43.9% 775 92.0% 40 100% - - 56 100% 55 100% 1,460 98.9% 1,486 94.0% 1,145 67.7% 1,173 63.0% 909 53.2% 3,764 82.8% SUSTAINABLE DEVELOPMENT REPORT 2022 285
MENUPLACESPEOPLEPARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Performance Data Summary (Social) Hong Kong PortfolioChinese Mainland Portfolio U.S.A. Portfolio Hotels Total 202220212020201920182022202120202019201820222021 2020 2019 2018 2022 2021 2020 2019 2018 2022 Training Total number and percentage of 2,20894.4%2,16592.3%2,22992.1%2,14790.5%1,83077.2%1,94796.6%1,67996.9%1,64798.6%1,57094.7%1,23294.8%80100%74100%75100%85100%97100%1,972100%2,04899.9%2,12498.0%2,350100%2,113100%6,207 96.9% employees received training By gender Male1,42195.7%1,41193.6%1,46492.8%1,40890.4%1,20877.2%1,23296.6%1,06497.6%1,05098.3%99795.8%76394.9%48100%42100%47100%51100%55100%1,020100%1,04399.8%1,077 98.6% 1,177 100% 1,066 100% 3,721 97.2% Female78792.3%75490.0%76590.9%73990.7%62277.3%71596.6%61595.8%59799.0%57393.0%46994.6%32100%32100%28100%34100%42100%952100% 1,005 99.9% 1,047 97.3% 1,173 100% 1,047 100% 2,486 96.4% By management role Management 56398.3%55294.5%57996.8%56298.3%54394.6%70093.2%58593.5%54696.8%47588.6%40788.9%40100%33100%32100%29100%42100%496100% 467 99.4% 474 99.6% 488 100% 405 100% 1,799 96.7% Non-management 1,64593.2%1,61391.6%1,65090.6%1,58588.0%1,28771.7%1,24798.6%1,09498.9%1,10199.5%1,09597.7%82598.0%40100%41100%43100%56100%55100%1,476100%1,581100%1,65097.5%1,862100% 1,708 100% 4,408 97.0% Total training hours 29,70722,48424,29341,86534,25133,52329,51323,71133,12026,1901,195740832597 867 89,356 111,042 77,804 93,958 67,479 153,781 Total training hours by type of training Mandatory16,388.8 55.2% 10,289.1 45.8%7,533.531.0%--21,853.9 65.2% 20,212.7 68.5% 16,332.4 68.9%--1,195.0 100%296.040.0%720.086.5%--48,973.8 54.8% 43,951.6 39.6% 12,361.4 15.9%- - 88,411.5 57.5% Non-mandatory 13,318.644.8% 12,194.9 54.2% 16,759.5 69.0%--11,668.7 34.8% 9,300.5 31.5%7,378.731.1%--00%444.060.0%112.013.5%--40,382.4 45.2% 67,089.960.4% 65,442.9 84.1% - - 65,369.7 42.5% Average training hours By employee12.79.610.017.614.516.617.014.220.020.114.910.0 11.1 7.0 8.9 45.3 54.1 35.9 40.0 31.9 24.0 By gender Male12.38.89.415.913.216.817.714.818.920.214.910.0 12.3 2.9 8.9 44.3 54.2 34.2 37.5 29.3 22.4 Female13.311.011.321.016.916.315.913.121.820.114.910.0 9.0 13.2 8.9 46.4 54.1 37.6 42.5 34.6 26.4 By age group Under 30 years old 13.110.521.1--16.817.514.3--14.910.0 8.8 - - 52.8 59.5 41.6 - - 33.4 30 to 50 years old 15.512.211.1--16.817.314.5--14.910.0 11.7 - - 44.7 55.0 35.0 - - 24.3 Over 50 years old 8.85.44.8--15.314.611.5--14.910.0 10.8 - - 29.1 34.2 22.6 - - 13.8 By management role Management 18.919.020.732.634.814.614.712.522.020.014.910.012.8 14.9 8.9 42.8 58.2 30.3 34.0 34.7 23.5 Non-management 10.76.56.512.97.917.818.315.019.020.214.910.09.9 2.9 8.9 46.1 52.9 37.5 41.6 31.3 24.2 Total training spend (million HK$)3.24.12.93.84.01.62.31.12.72.31.30.50.1 - 1.2 1.6 1.2 0.8 1.5 1.6 7.7 Training by related-topics Information and cyber security related training Total training hours for employees954.8675.8958.8--3,159.5850.61,190.3--80.074.075.0- - 4,325.2 1,723.0 2,462.9 - - 8,519.4 Corporate social responsibility related training Total training hours for employees846.0423.9515.53,570.05,548.01,908.32,111.31,645.24,127.32,433.980.00.075.015.0122.04,621.5 1,399.0 2,073.8 3,394.0 3,170.8 7,455.8 Total training hours for new hires (SD 667.0112.0118.0606.0257.0374.2787.0614.2717.0483.00.00.08.09.072.0 386.5 365.3 1,276.3 1,875.0 119.3 1,427.7 training in induction programme) Health and safety related training Total training hours on health and 9,640.02,867.85,719.811,595.54,342.315,998.815,214.913,876.611,753.910,329.580.0222.075.021.0135.08,333.38,345.3 4,201.8 5,241.4 5,848.2 34,052.1 safety Average training hours on health 4.11.22.44.91.87.98.88.37.17.91.03.01.0 0.2 1.4 4.2 4.1 1.9 2.2 2.8 5.3 and safety per employee Human rights related training Total training hours on human rights 6,320.53,507.03,040.02,910.01,881.35,984.22,568.73,015.61,709.31,794.5400.0158.075.05.0388.05,214.46,999.0 5,022.1 4,654.9 1,654.0 17,919.0 related topics Percentage of employees received 2,12891.0%1,88880.5%2,09786.7%1,95682.4%78733.2%1,90994.7%1,57490.9%1,64598.4%83850.6%1,08383.3%80100%74100%75100%7082.4%97100%1,973100%1,93894.5%1,85285.4%1,58867.6%1,19656.6%6,09095.1% human rights related training Unconscious bias related training Total training hours on unconscious 1,490.0----1,439.5----720.0-- - - 2,005.5 - - - - 5,655.0 bias related topics Percentage of employees received 1,60968.8%----1,60679.7%----80100%-- - - 1,973 100% - - - - 5,268 82.2% unconscious bias related training By management role Management 51189.2%----51969.1%----40100% - - - - 497 100% - - - - 1,567 84.2% Non-management 1,09862.2%----1,08785.9%----40100%- - - - 1,476 100% - - - - 3,701 81.4% Anti-corruption related training Total training hours on anti-1,857.32,446.0684.81,959.0999.83,143.71,901.21,341.41,406.51,703.580.0--7.0194.0 3,610.2 6,173.5 3,274.8 3,290.0 1,732.0 8,691.1 corruption related topics Percentage of employees received 1,33557.1%1,81577.4%1,984(18)82.0%1,94081.8%61726.0%1,92395.4%1,27073.3%1,29277.3%75145.3%1,11986.1%80100%--8094.1%97100%1,93998.3%1,94895.0%1,42765.8%1,54765.8%1,08651.4% 5,277 82.4% anti-corruption related training By management role Management 31655.1%47280.8%526(18)88.0%52692.0%23641.1%67890.3%37660.1%40772.2%25948.3%34475.1%40100%--2482.8%42100%479100% 462 98.3% 282 59.2% 374 76.6% 177 43.7% 1,513 81.3% Non-management 1,01957.7%1,34376.3% 1,458(18)80.0%1,41478.5%38121.2%1,24598.4%89480.8%88579.9%49243.9%77592.0%40100%--56100%55100%1,46098.9%1,48694.0%1,145 67.7% 1,173 63.0% 909 53.2% 3,764 82.8% SUSTAINABLE DEVELOPMENT REPORT 2022 285
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Performance Data Summary (Social) Hong Kong Portfolio Chinese Mainland Portfolio U.S.A. Portfolio Hotels Total 2022 2021 2020 2019 2018 2022 2021 2020 2019 2018 2022 2021 2020 2019 2018 2022 2021 2020 2019 2018 2022 Parental Leave Total number of employees entitled to 2,273 2,276 2,343 2,302 2,302 2,016 1,732 1,671 1,656 1,300 80 73 75 84 96 1,973 1,822 1,938 1,642 1,937 6,342 parental leave By gender Male 1,469 1,484 1,552 1,532 1,537 1,276 1,090 1,068 1,040 804 48 42 47 51 55 1,020 955 1,001 809 986 3,813 Female 804 792 791 770 765 740 642 603 616 496 32 31 28 33 41 953 867 937 833 951 2,529 Total number of employees took parental leave By gender Male 19 15 16 13 15 16 15 24 29 25 2 1 2 1 2 37 11 26 28 23 74 Female 14 19 19 21 28 23 18 28 29 30 3 1 1 2 0 37 30 21 41 29 77 Return to work rate (%)(6) By gender Male 100% 100% 100% 84.6% 93.3% 100% 100% 95.8% 93.1% 100% 100% 100% 100% 100% 100% 100% 100% 100% 96.4% 100% 100% Female 100% 100% 100% 100% 96.4% 87.0% 94.4% 96.4% 96.6% 93.3% 33.3% 100% 100% 100% - 100% 80.0% 90.5% 85.4% 93.1% 93.5% Occupational Health and Safety (employee) Number of lost time injuries 24 27 27 47 47 2 2 10 10 3 0 0 0 1 0 32 33 45 54 41 58 (sick leave > 0 days) Number of reportable injuries 21 21 23 31 34 2 1 9 9 2 0 0 0 1 0 19 28 27 38 32 42 (sick leave > 3 days) Number of high-consequence injuries 2 2 2 3 7 0 0 0 1 0 0 0 0 0 - 1 2 1 0 2 3 (sick leave > 6 months) Thousand hours worked 5,266.3 5,375.5 5,414.3 5,477.5 5,434.7 3,757.5 3,185.6 3,221.1 3,248.1 2,475.5 163.5 154.0 168.4 153.2 185.4 4,094.0 4,264.9 4,340.8 4,878.6 4,309.9 13,281.3 R Lost time injury rate (LTIR) (employee)(7) 0.91 1.00 1.00 1.72 1.73 0.11 0.13 0.62 0.62 0.24 0.00 0.00 0.00 1.31 0.00 1.56 1.55 2.07 2.21 1.90 0.87 Rate of high-consequence injuries(8) 0.08 0.07 0.07 0.11 0.26 0.00 0.00 0.00 0.06 0.00 0.00 0.00 0.00 0.00 - 0.05 0.09 0.05 0.00 0.09 0.05 Lost days due to injuries 1,009.5 982.5 1,506 1,460 2,602.5 222 79 403.5 412 77 0 0 0 22 0 855.0 1,266 1,298 1,083 699 2,086.5 Lost day rate (LDR) (employee)(9) 38.34 36.55 55.63 53.31 95.77 11.82 4.96 25.05 25.37 6.22 0.00 0.00 0.00 28.72 0.00 41.77 59.35 59.80 44.40 32.44 31.42R Absentee rate(10) 2.55% 1.56% 2.14% 2.76% 2.49% 1.10% 1.31% 1.13% 1.17% 1.05% 0% 0% 0.31% 0.07% 4.51% 3.02% 0.88% 0.92% 1.01% 0.09%(19) 2.21% Number of work-related ill health 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Number of fatalities (employee)(11) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0R Rate of fatalities (employee)(12) 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Percentage of the organisation operating in verified compliance with an internationally recognised occupational 100% 100% 100% 100% 100% 59.4% 71.5% 73.0% 73.7% 65.8% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 55.2% health and safety management system (ISO 45001)(1³) Hong Kong Development Projects Reporting Boundary: (a) Our Hong Kong portfolio, Chinese Mainland portfolio and U.S.A. portfolio refer to office and retail portfolio in Hong Kong, the Chinese Mainland and Miami, U.S.A. respectively, excluding hotels. 2022 2021 2020 2019 2018 Occupational Health and Safety (b) Hotels refer to Swire Hotels, serviced apartments and Swire Restaurants in Hong Kong, the Chinese Mainland and Miami, U.S.A. (contractor) Notes: Number of lost time injuries 1 6 - - - R - Denotes sustainability data that has been reported on by Deloitte Touche Tohmatsu. Please refer to the Independent Limited Assurance Report for further details. (sick leave > 0 days) Thousand hours worked 3,472.4 5,000.0 - - - Lost time injury rate (LTIR) (1) Data on permanent and fixed term/temporary employment contract are reported since 2017 in accordance with the GRI General Disclosure 102-8. 0.06R 0.24 - - - (contractor)(14) (2) Total new hires applies to permanent employees only. New hires rate is calculated as “total number of new hires (permanent employees) in the reporting year divided by total number of permanent employees as of 31 Dec of the reporting Accident rate (contractor)(15) 0.90 - - - - year and then multiplied by 100%”. Number of fatalities (contractor)(16) 0R 0 - - - (3) Voluntary turnover applies to permanent employees only. Voluntary turnover rate is calculated as “total number of permanent employees voluntarily leaving employment during the reporting year divided by total number of permanent employees as of 31 Dec of the reporting year and then multiplied by 100%”. Swire Properties (4) Total turnover applies to permanent employees only. Total turnover rate is calculated as “total number of permanent employees voluntarily and involuntarily leaving employment during the reporting year divided by total number of permanent employees as of 31 Dec of the reporting year and then multiplied by 100%”. 2022 2021 2020 2019 2018 (5) In 2022, gender pay ratio and gender remuneration ratio are calculated based on a non-weighed average methodology. The data from 2018 onwards have been restated to align with the revised methodology. Governance (6) Return to work rate is calculated as “total number of employees who did return to work after parental leave divided by total number of employees due to return to work after taking parental leave and then multiplied by 100%”. Convicted cases of corruption 0R 0 0 0 0 (7) Lost time injury rate (“LTIR”) (employee) represents the number of injuries per 100 employees per year. It is calculated as “total number of injuries multiplied by 200,000 and then divided by total hours worked”. The factor 200,000 is the Composition of the Board of Directors annual hours worked by 100 employees, based on 40 hours per week for 50 weeks a year. Total number of Directors 13 13 12 12 11 (8) Rate of high-consequence injuries represents the number of high-consequence injuries per 100 employees per year. It is calculated as “total number of high-consequence injuries multiplied by 200,000 and then divided by total hours worked”. By gender The factor 200,000 is the annual hours worked by 100 employees, based on 40 hours per week for 50 weeks a year. Male 9 69.2% 9 69.2% 8 66.7% 8 66.7% 7 63.6% (9) Lost day rate (“LDR”) (employee) represents the number of lost scheduled working days per 100 employees per year. It is calculated as “total days lost multiplied by 200,000 and then divided by total hours worked.” The factor 200,000 is the Female 4 30.8% 4 30.8% 4 33.3% 4 33.3% 4 36.4% annual hours worked by 100 employees, based on 40 hours per week for 50 weeks a year. By age group (10) Absentee rate is calculated as number of actual days lost divided by number of scheduled work days in the reporting year. Lost days due to work-related injuries has been included in the calculation of absentee rate since 2019. Under 30 years old 0 0% 0 0% 0 0% 0 0% 0 0% (11) An employee fatality is a loss of life of an employee as the result of a work-related incident. 30 to 50 years old 3 23.1% 3 23.1% 3 25.0% 3 25.0% 4 36.4% (12) Rate of fatalities represents the number of fatalities per 100 employees per year. It is calculated as “total number of fatalities multiplied by 200,000 and then divided by total hours worked”. The factor 200,000 is the annual hours worked by 100 Over 50 years old 10 76.9% 10 76.9% 9 75.0% 9 75.0% 7 63.6% employees, based on 40 hours per week for 50 weeks a year. By local or non-local (13) Calculated based on percentage of employees. Local 8 61.5% 7 53.8% 8 66.7% 6 50.0% 5 45.5% (14) Lost time injury rate (“LTIR”) (contractor) represents the number of injuries per 100 contractor workers per year. It is calculated as “total number of injuries multiplied by 200,000 and then divided by total hours worked”. The factor 200,000 is the annual hours worked by 100 contractor workers, based on 40 hours per week for 50 weeks a year. Non-local 5 38.5% 6 46.2% 4 33.3% 6 50.0% 6 54.5% By Year of service as Director (15) Accident rate (contractor) represents the number of reportable accidents per 1,000 contractor workers. It is calculated as “total number of reportable accidents multiplied by 1,000 and then divided by average daily number of contractor workers on- site”. 3 years or below 5 38.4% 6 46.1% - - - 4 to 9 years 4 30.8% 4 30.8% - - - (16) A contractor fatality is defined as a loss of life of a contractor or subcontractor employee as the result of an incident occurring when the contractor or subcontractor employees are conducting work for our Company. over 9 years 4 30.8% 3 23.1% - - - (17) Included Hong Kong secondees working in Singapore, Jakarta and Papua New Guinea. (18) Included training received in the past three years. (19) Excluded EAST, Miami, U.S.A. employees. SUSTAINABLE DEVELOPMENT REPORT 2022 286
MENUPLACESPEOPLEPARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Performance Data Summary (Social) Hong Kong PortfolioChinese Mainland Portfolio U.S.A. Portfolio Hotels Total 202220212020201920182022202120202019201820222021 2020 2019 2018 2022 2021 2020 2019 2018 2022 Parental Leave Total number of employees entitled to 2,2732,2762,3432,3022,3022,0161,7321,6711,6561,3008073758496 1,973 1,822 1,938 1,642 1,937 6,342 parental leave By gender Male1,4691,4841,5521,5321,5371,2761,0901,0681,040804484247 51 55 1,020 955 1,001 809 986 3,813 Female8047927917707657406426036164963231 28 33 41 953 867 937 833 951 2,529 Total number of employees took parental leave By gender Male191516131516152429252 1 2 1 2 37 11 26 28 23 74 Female141919212823182829303 1 1 2 0 37 30 21 41 29 77 Return to work rate (%)(6) By gender Male100%100%100%84.6%93.3%100%100%95.8%93.1%100%100%100%100% 100% 100% 100% 100% 100% 96.4% 100% 100% Female100%100%100%100%96.4%87.0%94.4%96.4%96.6%93.3%33.3%100%100% 100% - 100% 80.0% 90.5% 85.4% 93.1% 93.5% Occupational Health and Safety (employee) Number of lost time injuries2427274747221010300 0 1 0 32 33 45 54 41 58 (sick leave > 0 days) Number of reportable injuries21212331342199200 0 1 0 19 28 27 38 32 42 (sick leave > 3 days) Number of high-consequence injuries 222370001000 0 0 - 1 2 1 0 2 3 (sick leave > 6 months) Thousand hours worked5,266.35,375.55,414.35,477.55,434.73,757.53,185.63,221.13,248.12,475.5163.5154.0168.4153.2185.44,094.04,264.9 4,340.8 4,878.6 4,309.9 13,281.3 R Lost time injury rate (LTIR) (employee)(7)0.911.001.001.721.730.110.130.620.620.240.000.000.001.310.00 1.56 1.55 2.07 2.21 1.90 0.87 Rate of high-consequence injuries(8)0.080.070.070.110.260.000.000.000.060.000.000.000.000.00- 0.05 0.09 0.05 0.00 0.09 0.05 Lost days due to injuries1,009.5982.51,5061,4602,602.522279403.54127700022 0 855.0 1,266 1,298 1,083 699 2,086.5 Lost day rate (LDR) (employee)(9)38.3436.5555.6353.3195.7711.824.9625.0525.376.220.000.000.0028.720.00 41.77 59.35 59.80 44.40 32.44 31.42R Absentee rate(10)2.55%1.56%2.14%2.76%2.49%1.10%1.31%1.13%1.17%1.05%0%0%0.31%0.07% 4.51% 3.02% 0.88% 0.92% 1.01% 0.09%(19) 2.21% Number of work-related ill health000000000000 0 0 0 0 0 0 0 0 0 Number of fatalities (employee)(11) 000000000000 0 0 0 0 0 0 0 0 0R Rate of fatalities (employee)(12)0%0%0%0%0%0%0%0%0%0%0%0%0% 0% 0% 0% 0% 0% 0% 0% 0% Percentage of the organisation operating in verified compliance with an internationally recognised occupational 100%100%100%100%100%59.4%71.5%73.0%73.7%65.8%0%0%0%0%0% 0% 0% 0% 0% 0% 55.2% health and safety management system (ISO 45001)(1³) Hong Kong Development ProjectsReporting Boundary: (a) Our Hong Kong portfolio, Chinese Mainland portfolio and U.S.A. portfolio refer to office and retail portfolio in Hong Kong, the Chinese Mainland and Miami, U.S.A. respectively, excluding hotels. 20222021202020192018 Occupational Health and Safety (b) Hotels refer to Swire Hotels, serviced apartments and Swire Restaurants in Hong Kong, the Chinese Mainland and Miami, U.S.A. (contractor)Notes: Number of lost time injuries16---R - Denotes sustainability data that has been reported on by Deloitte Touche Tohmatsu. Please refer to the Independent Limited Assurance Report for further details. (sick leave > 0 days) Thousand hours worked3,472.45,000.0--- Lost time injury rate (LTIR)(1) Data on permanent and fixed term/temporary employment contract are reported since 2017 in accordance with the GRI General Disclosure 102-8. 0.06R0.24--- (contractor)(14)(2) Total new hires applies to permanent employees only. New hires rate is calculated as “total number of new hires (permanent employees) in the reporting year divided by total number of permanent employees as of 31 Dec of the reporting Accident rate (contractor)(15)0.90----year and then multiplied by 100%”. Number of fatalities (contractor)(16) 0R0---(3) Voluntary turnover applies to permanent employees only. Voluntary turnover rate is calculated as “total number of permanent employees voluntarily leaving employment during the reporting year divided by total number of permanent employees as of 31 Dec of the reporting year and then multiplied by 100%”. Swire Properties(4) Total turnover applies to permanent employees only. Total turnover rate is calculated as “total number of permanent employees voluntarily and involuntarily leaving employment during the reporting year divided by total number of permanent employees as of 31 Dec of the reporting year and then multiplied by 100%”. 20222021202020192018(5) In 2022, gender pay ratio and gender remuneration ratio are calculated based on a non-weighed average methodology. The data from 2018 onwards have been restated to align with the revised methodology. Governance(6) Return to work rate is calculated as “total number of employees who did return to work after parental leave divided by total number of employees due to return to work after taking parental leave and then multiplied by 100%”. Convicted cases of corruption0R0000 (7) Lost time injury rate (“LTIR”) (employee) represents the number of injuries per 100 employees per year. It is calculated as “total number of injuries multiplied by 200,000 and then divided by total hours worked”. The factor 200,000 is the Composition of the Board of Directorsannual hours worked by 100 employees, based on 40 hours per week for 50 weeks a year. Total number of Directors1313121211(8) Rate of high-consequence injuries represents the number of high-consequence injuries per 100 employees per year. It is calculated as “total number of high-consequence injuries multiplied by 200,000 and then divided by total hours worked”. By genderThe factor 200,000 is the annual hours worked by 100 employees, based on 40 hours per week for 50 weeks a year. Male969.2%969.2%866.7%866.7%763.6%(9) Lost day rate (“LDR”) (employee) represents the number of lost scheduled working days per 100 employees per year. It is calculated as “total days lost multiplied by 200,000 and then divided by total hours worked.” The factor 200,000 is the Female430.8%430.8%433.3%433.3%436.4%annual hours worked by 100 employees, based on 40 hours per week for 50 weeks a year. By age group(10) Absentee rate is calculated as number of actual days lost divided by number of scheduled work days in the reporting year. Lost days due to work-related injuries has been included in the calculation of absentee rate since 2019. Under 30 years old 00%00%00%00%00%(11) An employee fatality is a loss of life of an employee as the result of a work-related incident. 30 to 50 years old 323.1%323.1%325.0%325.0%436.4%(12) Rate of fatalities represents the number of fatalities per 100 employees per year. It is calculated as “total number of fatalities multiplied by 200,000 and then divided by total hours worked”. The factor 200,000 is the annual hours worked by 100 Over 50 years old 1076.9%1076.9%975.0%975.0%763.6%employees, based on 40 hours per week for 50 weeks a year. By local or non-local (13) Calculated based on percentage of employees. Local861.5%753.8%866.7%650.0%545.5%(14) Lost time injury rate (“LTIR”) (contractor) represents the number of injuries per 100 contractor workers per year. It is calculated as “total number of injuries multiplied by 200,000 and then divided by total hours worked”. The factor 200,000 is the annual hours worked by 100 contractor workers, based on 40 hours per week for 50 weeks a year. Non-local538.5%646.2%433.3%650.0%654.5% By Year of service as Director(15) Accident rate (contractor) represents the number of reportable accidents per 1,000 contractor workers. It is calculated as “total number of reportable accidents multiplied by 1,000 and then divided by average daily number of contractor workers on- site”. 3 years or below538.4%646.1%--- 4 to 9 years430.8%430.8%---(16) A contractor fatality is defined as a loss of life of a contractor or subcontractor employee as the result of an incident occurring when the contractor or subcontractor employees are conducting work for our Company. over 9 years430.8%323.1%---(17) Included Hong Kong secondees working in Singapore, Jakarta and Papua New Guinea. (18) Included training received in the past three years. (19) Excluded EAST, Miami, U.S.A. employees. SUSTAINABLE DEVELOPMENT REPORT 2022 286
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Independent Practitioner’s Limited Assurance Report To the Board of Directors of Swire Properties Limited We have been engaged by the Directors of Swire Properties Limited (“SPROPS”) to perform a limited assurance engagement in relation to certain sustainable development data (the “Data Points”) included in its Sustainable Development Report for the year ended 31 December 2022 (the “SD Report 2022”) and selected by SPROPS. Data Points The Data Points are listed below: Data Points Scope of assurance Energy consumption Total* Electricity use intensity Hong Kong Portfolio Carbon emissions (Scopes 1 & 2) - Total* Location-based Carbon emissions (Scopes 1 & 2) - Total* Market-based Carbon emissions (Scope 3 category 13 Hong Kong and Chinese Mainland Portfolios downstream leased assets) (excluding Island Place Mall) Water consumption – municipal Total* Commercial waste Hong Kong Portfolio Construction and demolition waste Hong Kong Development Projects Number of fatalities (employee) Total* Number of fatalities (contractor) Hong Kong Development Projects Lost time injury rate (employee) Total* Lost time injury rate (contractor) Hong Kong Development Projects Lost day rate (employee) Total* Convicted cases of corruption Total* * In this instance “Total” refers to the total relating to SPROPS’ Hong Kong, Chinese Mainland and U.S.A. portfolios as well as its Hotels, as displayed in the Performance Data Summary chapter in the SD Report 2022. The Data Points are identified with the symbol [R] in the Performance Data Summary of the SD Report 2022. SUSTAINABLE DEVELOPMENT REPORT 2022 287
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Reporting Criteria The Data Points are presented in accordance with the criteria set out under “ESG Reporting Standards and Principles” in the SD Report 2022 (the “Reporting Criteria”). Our Independence and Quality Control We have complied with the independence and other ethical requirements of the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board of Accountants, which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behavior. Our firm applies International Standard on Quality Control 1, “Quality Control for Firms that Perform Audits and Reviews of Financial Statements, and Other Assurance and Related Services Engagements” and accordingly maintains a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements. Responsibilities Deloitte Touche Tohmatsu It is our responsibility to express a limited assurance conclusion on the Data Points based on our work performed and to report our conclusion solely to you, as a body, in accordance with our agreed terms of engagement and for no other purpose. We do not assume responsibility or accept liability to any other person for the contents of this report. Swire Properties Limited The Directors of SPROPS are responsible for the preparation and presentation of the Data Points in accordance with the Reporting Criteria. This responsibility includes designing, implementing and maintaining internal controls relevant to the preparation and presentation of the Data Points, applying an appropriate basis of preparation, making estimates that are reasonable in the circumstances and ensuring the accuracy and completeness of the Data Points. Reporting Framework We conducted our work in accordance with the International Standard on Assurance Engagements 3000 (Revised), “Assurance Engagements other than Audits or Reviews of Historical Financial Information”, and the International Standard on Assurance Engagements 3410, “Assurance Engagements on Greenhouse Gas Statements” (the “Standards”), issued by the International Auditing and Assurance Standards Board (together, the "Standards"). The Standards require that we comply with ethical requirements, and plan and perform the engagement to obtain limited assurance as to whether any matters have come to our attention that cause us to believe that the Data Points do not comply in any material respects with the Reporting Criteria. Objectives The overall objective of our procedures was to assess whether the Data Points were prepared, in all material respects, in accordance with the Reporting Criteria. SUSTAINABLE DEVELOPMENT REPORT 2022 288
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Procedures Performed Our work comprised the following limited procedures: • Interviews with relevant management and personnel involved in providing information relating to the Data Points for inclusion in the SD Report 2022; • Sample testing of documentary evidence at SPROPS’ corporate level and site level; • Analytical procedures; and, • Recalculation. We have not performed any procedures in relation to other data included in the SD Report 2022. In addition, our work performed is not for the purposes of expressing an opinion on the effectiveness of SPROPS’ internal controls. The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed. Inherent Limitations Non-financial performance information, including the Data Points, is subject to more inherent limitations than financial information given both its nature and the methods used for determining, calculating, sampling and estimating such information. This could have a material impact on comparability. Qualitative interpretations of relevance, materiality and the accuracy of such information are subject to individual assumptions and judgements. Conclusion Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that causes us to believe that the Data Points have not been prepared, in all material respects, in accordance with the Reporting Criteria. Deloitte Touche Tohmatsu Certified Public Accountants Hong Kong March 28, 2023 SUSTAINABLE DEVELOPMENT REPORT 2022 289
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Global Reporting Initiative Content Index Swire Properties has reported in accordance with the GRI Statement of use Standards for the period from 1st January 2022 to 31st December 2022. GRI used GRI 1: Foundation 2021 GRI 2: General Disclosures 2021 References and Remarks GRI Standard Disclosure (Unless otherwise specified, references are made to sections of the Sustainable Development Report 2022) The organization and its reporting practices 2-1 Organizational details Cover Page Profile of Swire Properties Limited Places Annual Report 2022 – Company Profile 2-2 Entities included in the organization’s ESG Reporting Standards and Principles sustainability reporting Annual Report 2022 2-3 Reporting period, frequency and contact About this Report point ESG Reporting Standards and Principles Table of Contents 2-4 Restatements of information Performance Data Summary 2-5 External assurance ESG Reporting Standards and Principles Assurance Report Activities and workers 2-6 Activities, value chain and other Profile of Swire Properties Limited business relationships Places Partners ESG Reporting Standards and Principles Annual Report 2022 – Company Profile Annual Report 2022 – Management Discussion & Analysis – Review of Operations – Portfolio Overview Corporate website – About Us Corporate website – Partners Corporate website – Supplier Code of Conduct There were no significant changes in the location of suppliers, the structure of the supply chain, or relationships with suppliers, including selection and termination. 2-7 Employees People Performance Data Summary SUSTAINABLE DEVELOPMENT REPORT 2022 290
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) References and Remarks GRI Standard Disclosure (Unless otherwise specified, references are made to sections of the Sustainable Development Report 2022) 2-8 Workers who are not employees People Partners Performance Data Summary Governance 2-9 Governance structure and composition SD Governance People Performance (Economic) Annual Report 2022 – Corporate Governance 2-10 Nomination and selection of the highest Annual Report 2022 – Corporate Governance – Appointment and governance body Re-election 2-11 Chair of the highest governance body SD Governance Performance (Economic) Annual Report 2022 – Corporate Governance – The Board of Directors 2-12 Role of the highest governance body in SD Governance overseeing the management of impacts Performance (Economic) Annual Report 2022 – Corporate Governance 2-13 Delegation of responsibility for SD Governance managing impacts Performance (Economic) Annual Report 2022 – Corporate Governance – Delegation by the Board 2-14 Role of the highest governance body in SD Governance sustainability reporting 2-15 Conflicts of interest Performance (Economic) Annual Report 2022 – Corporate Governance – Conflicts of Interest 2-16 Communication of critical concerns SD Governance Performance (Economic) Annual Report 2022 – Corporate Governance – Conflicts of Interest 2-17 Collective knowledge of the highest SD Governance governance body Annual Report 2022 – Corporate Governance Annual Report 2022 – Corporate Governance – Board Processes and Continuous Professional Development 2-18 Evaluation of the performance of the Annual Report 2022 – Corporate Governance highest governance body 2-19 Remuneration policies Performance (Economic) 2-20 Process to determine remuneration Corporate website – Remuneration Policy Annual Report 2022 – Corporate Governance – Remuneration Committee Annual Report 2022 – Notes to the Financial Statements – Note 9 Directors’ and Executive Officers’ Emoluments 2-21 Annual total compensation ratio People Annual Report 2022 – Notes to the Financial Statement – Note 9 Directors’ and Executive Officers’ Emoluments SUSTAINABLE DEVELOPMENT REPORT 2022 291
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) References and Remarks GRI Standard Disclosure (Unless otherwise specified, references are made to sections of the Sustainable Development Report 2022) Strategy, policies and practices 2-22 Statement on sustainable development Chief Executive’s Message strategy SD 2030 Strategy 2-23 Policy commitments SD Governance Performance (Economic) Annual Report 2022 – Risk Management Corporate website – Corporate Code of Conduct Corporate website – Supplier Code of Conduct Corporate website – Sustainable Development Policy Corporate website – Human Rights Policy Corporate website – Respect in the Workplace Policy Corporate website – Staff Grievance Policy 2-24 Embedding policy commitments SD Governance Performance (Economics) Performance Data Summary Corporate website – Anti-bribery and Corruption Policy Corporate website – Board Diversity Policy Corporate website – Corporate Code of Conduct Corporate website – Shareholders’ Communication Policy Corporate website – Whistleblowing Policy Corporate website – Sustainable Development Policies 2-25 Processes to remediate negative Materiality impacts Corporate website – Whistleblowing Policy Corporate website – Staff Grievance Policy 2-26 Mechanisms for seeking advice and Materiality raising concerns Performance (Economic) Corporate website – Whistleblowing Policy Corporate website – Corporate Code of Conduct Corporate website – Staff Grievance Policy 2-27 Compliance with laws and regulations In 2022, we were not subject to significant fines or nonmonetary sanctions for non-compliance with laws or regulations. 2-28 Membership associations External Charters and Memberships Stakeholder engagement 2-29 Approach to stakeholder engagement Materiality Corporate website – Shareholders’ Communication Policy 2-30 Collective bargaining agreements Corporate website – Human Rights Policy There are no formal collective bargaining agreements in place within our Company. In Chinese Mainland, 44% of our employees are represented by trade unions. In Hong Kong, all of our employees have the right and freedom to form and join trade unions. SUSTAINABLE DEVELOPMENT REPORT 2022 292
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) GRI 3: Material Topics 2021 GRI Standard Disclosure References and Remarks (Unless otherwise specified, references are made to sections of the Sustainable Development Report 2022) 3-1 Process to determine material topics Materiality 3-2 List of material topics ESG Reporting Standards and Principles Material Topics (Economic) & Management Approach References and Remarks GRI Standard Disclosure (Unless otherwise specified, references are made to sections of the Sustainable Development Report 2022) GRI 201: Economic Performance 2016 3-3 The management approach and its Performance (Economic) components Annual Report 2022 – Key Business Strategies Annual Report 2022 – Management Discussion & Analysis – Review of Operations – Portfolio Overview 201-1 Direct economic value generated and Performance (Economic) distributed Annual Report 2022 – Management Discussion & Analysis – Review of Operations – Portfolio Overview Annual Report 2022 – Financial Review 201-2 Financial implications and other risks Climate-related Financial Disclosures and opportunities due to climate change Performance (Economic) 201-4 Financial assistance received from In 2022, we did not receive significant financial assistance from government any government. GRI 203: Indirect Economic Impacts 2016 3-3 The management approach and its Places components Annual Report 2022 – Management Discussion & Analysis – Review of Operations – Portfolio Overview 203-1 Infrastructure investments and services Places supported 203-2 Significant indirect economic impacts Places Annual Report 2022 – Management Discussion & Analysis – Review of Operations – Portfolio Overview GRI 205: Anti-corruption 2016 3-3 The management approach and its Performance (Economic) components Corporate website – Anti-bribery and Corruption Policy Corporate website – Corporate Code of Conduct 205-2 Communication and training on anti- Performance (Economic) corruption policies and procedures Performance Data Summary Corporate website – Anti-bribery and Corruption Policy 205-3 Confirmed incidents of corruption and Performance (Economic) actions taken Performance Data Summary GRI 206: Anti-competitive Behavior 2016 3-3 The management approach and its Performance (Economic) components Corporate website – Corporate Code of Conduct Corporate website – Whistleblowing Policy 206-1 Legal actions for anti-competitive Performance (Economic) behavior, anti-trust, and monopoly practices SUSTAINABLE DEVELOPMENT REPORT 2022 293
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Material Topics (Environmental) & Management Approach References and Remarks GRI Standard Disclosure (Unless otherwise specified, references are made to sections of the Sustainable Development Report 2022) GRI 301: Materials 2016 3-3 The management approach and its Partners components Performance (Environment) Corporate website – Environmental Policy Swire Group website – Swire Pacific Sustainable Procurement Policy Swire Group website – Swire Pacific Sustainable Food Policy 301-1 Materials used by weight or volume Partners Performance (Environment) Performance Data Summary GRI 302: Energy 2016 3-3 The management approach and its Performance (Environment) components Corporate website – Energy Policy 302-1 Energy consumption within the Performance (Environment) organisation Performance Data Summary 302-3 Energy intensity Performance (Environment) G4-CRE1 Building energy intensity Performance Data Summary 302-4 Reduction of energy consumption Performance (Environment) Performance Data Summary GRI 303: Water and Effluents 2018 3-3 The management approach and its Performance (Environment) components Corporate website – Water Policy 303-1 Interactions with water as a shared Performance (Environment) resource Performance Data Summary 303-2 Management of water discharge-related Performance (Environment) impacts Performance Data Summary 303-3 Water withdrawal Performance Data Summary In this Sustainable Development Report, this is referred to as water consumption. It is defined as the water drawn from municipal services for direct use in our operations. It can include water used for flushing, cleaning and freshwater cooling tower. The majority of water consumed by our operations is from municipal water supplies provided by local water supply authorities. We do not consume surface and ground water. Disclosure on the breakdown of water withdrawn by source e.g. surface water, ground water, etc. is considered to be not applicable. 303-4 Water discharge Performance Data Summary 100% of water discharged from our operations was transported to municipal wastewater systems in the cities where we operate. SUSTAINABLE DEVELOPMENT REPORT 2022 294
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) References and Remarks GRI Standard Disclosure (Unless otherwise specified, references are made to sections of the Sustainable Development Report 2022) G4-CRE2 Building water intensity Performance (Environment) Performance Data Summary GRI 304: Biodiversity 2016 3-3 The management approach and its Performance (Environment) components Corporate website – Biodiversity Policy 304-1 Operational sites owned, leased, Performance (Environment) managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas 304-2 Significant impacts of activities, products Performance (Environment) and services on biodiversity GRI 305: Emissions 2016 3-3 The management approach and its Performance (Environment) components Climate-related Financial Disclosures Performance Data Summary Corporate website – Climate Change Policy 305-1 Direct (Scope 1) GHG emissions Performance (Environment) Performance Data Summary 305-2 Energy Indirect (Scope 2) GHG emissions Performance (Environment) Performance Data Summary 305-3 Other indirect (Scope 3) GHG emissions Performance (Environment) Performance Data Summary 305-4 GHG emissions intensity Performance (Environment) G4-CRE3 GHG emissions intensity from buildings Climate-related Financial Disclosures Performance Data Summary 305-5 Reduction of GHG emissions Performance (Environment) Performance Data Summary GRI 306: Waste 2020 3-3 The management approach and its Performance (Environment) components Corporate website – Resource and Circularity Policy 306-1 Waste generation and significant waste- Performance (Environment) related impacts 306-2 Management of significant waste-related Performance (Environment) impacts Corporate website – Resource and Circularity Policy 306-3 Waste generated Performance (Environment) Performance Data Summary 306-4 Waste diverted from disposal Performance (Environment) Performance Data Summary 306-5 Waste directed to disposal Performance (Environment) Performance Data Summary SUSTAINABLE DEVELOPMENT REPORT 2022 295
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) References and Remarks GRI Standard Disclosure (Unless otherwise specified, references are made to sections of the Sustainable Development Report 2022) GRI 308: Supplier Environmental Assessment 2016 3-3 The management approach and its Partners components Corporate website – Partners Corporate website – Supplier Code of Conduct Swire Group website – Swire Pacific Sustainable Procurement Policy Swire Group website – Swire Pacific Sustainable Food Policy 308-1 New suppliers that were screened using Partners environmental criteria Material Topics (Social) & Management Approach References and Remarks GRI Standard Disclosure (Unless otherwise specified, references are made to sections of the Sustainable Development Report 2022) GRI 401: Employment 2016 3-3 The management approach and its People components Corporate website – People Corporate website – Working with us Corporate website – Human Rights Policy Corporate website – Diversity and Inclusion Policy Corporate website – Respect in the Workplace Policy Corporate website – Parental Leave Policy and Guidelines 401-1 New employee hires and employee People turnover Performance Data Summary 401-3 Parental leave Performance Data Summary GRI 403: Occupational Health and Safety 2018 3-3 The management approach and its People components Partners Corporate website – Health and Safety Policy 403-1 Occupational health and safety People management system Performance Data Summary 403-2 Hazard identification, risk assessment, People and incident investigation Partners Performance (Economic) 403-3 Occupational health services People 403-4 Worker participation, consultation, and People communication on occupational health Partners and safety 403-5 Worker training on occupational health People and safety Performance Data Summary 403-6 Promotion of worker health People Partners 403-7 Prevention and mitigation of People occupational health and safety impacts Partners directly linked by business relationships SUSTAINABLE DEVELOPMENT REPORT 2022 296
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) References and Remarks GRI Standard Disclosure (Unless otherwise specified, references are made to sections of the Sustainable Development Report 2022) 403-8 Workers covered by an occupational People health and safety management system Performance Data Summary G4-CRE6 Percentage of the organisation operating in verified compliance with an internationally recognised occupational health and safety management system (ISO 45001 or OHSAS 18001) 403-9 Work-related injuries People Partners Performance Data Summary 403-10 Work-related ill health Performance Data Summary GRI 404: Training and Education 2016 3-3 The management approach and its People components 404-1 Average hours of training per year per People employee Performance Data Summary 404-2 Programs for upgrading employee skills People and transition assistance programs 404-3 Percentage of employees receiving Performance Data Summary regular performance and career development reviews GRI 405: Diversity and Equal Opportunity 2016 3-3 The management approach and its People components Corporate Website – Corporate Code of Conduct Corporate website – Human Rights Policy Corporate Website – Diversity and Inclusion Policy Corporate website – Respect in the Workplace Policy Corporate website – Staff Grievance Policy Corporate Website – Board Diversity Policy 405-1 Diversity of governance bodies and People employees Performance Data Summary Annual Report 2022 – Corporate Governance & Sustainability – Directors and Officers Corporate website – Directors and Officers 405-2 Ratio of basic salary and remuneration of People women to men Performance Data Summary Corporate website – Remuneration Policy GRI 406: Non-discrimination 2016 3-3 The management approach and its People components Performance (Economic) Corporate website – Corporate Code of Conduct Corporate website – Human Rights Policy Corporate Website – Diversity and Inclusion Policy Corporate website – Respect in the Workplace Policy Corporate website – Whistleblowing Policy Corporate website – Staff Grievance Policy 406 Incidents of discrimination and corrective Performance (Economic) actions taken SUSTAINABLE DEVELOPMENT REPORT 2022 297
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) References and Remarks GRI Standard Disclosure (Unless otherwise specified, references are made to sections of the Sustainable Development Report 2022) GRI 413: Local Communities 2016 3-3 The management approach and its Places components People 413-1 Operations with local community Places engagement, impact assessments, and People development programmes GRI 414: Supplier Social Assessment 2016 3-3 The management approach and its Partners components Corporate website – Partners Corporate website – Supplier Code of Conduct 414-1 New suppliers that were screened using Partners social criteria GRI 416: Customer Health and Safety 2016 3-3 The management approach and its Partners components Performance (Environment) 416-1 Assessment of the health and safety Partners impacts of product and service Performance (Environment) categories GRI 417: Marketing and Labelling 2016 3-3 The management approach and its Performance (Environment) components 417-1 Requirements for product and service Performance (Environment) information and labelling This disclosure has been made with respect to certification for our buildings under relevant environmental building assessment schemes. G4-CRE8 Type and number of sustainability Performance (Environment) certification, rating and labelling Awards and Certification schemes for new construction, management, occupation and redevelopment GRI 418: Customer Privacy 2016 3-3 The management approach and its Partners components Performance (Economic) Corporate website – Corporate Code of Conduct Corporate website – Privacy Policy Corporate website – Whistleblowing Policy 418-1 Substantiated complaints concerning Partners breaches of customer privacy and losses Performance (Economic) of customer data SUSTAINABLE DEVELOPMENT REPORT 2022 298
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) HKEX ESG Reporting Guide Content Index Mandatory Disclosure Requirements References and Remarks (Unless otherwise specified, references are made to sections of the Sustainable Development Report 2022) Governance Structure SD 2030 Strategy SD Governance Materiality Reporting Principles ESG Reporting Standards and Principles Performance Data Summary Reporting Boundary ESG Reporting Standards and Principles Aspects, References and Remarks General Description (Unless otherwise specified, references are made to sections of the Disclosure, KPIs Sustainable Development Report 2022) A. Environmental Aspect A1 Emissions General Information on: Performance (Environment) Disclosure (a) the policies; and Corporate website – Environmental Policy (b) compliance with relevant laws and Corporate website – Climate Change Policy regulations that have a significant Corporate website – Resource and Circularity Policy impact on the issuer Corporate website – Water Policy relating to air and greenhouse gas emissions, discharges into water and land, and generation of hazardous and In 2022, there were no confirmed incidents of non-compliance non-hazardous waste with such laws or regulations, which have a significant impact on Swire Properties. KPI A1.1 The types of emissions and respective Emissions of NOx, SOx and other pollutants are considered not emissions data significant in our operations. KPI A1.2 Direct (Scope 1) and energy indirect Performance (Environment) - Profile of Environmental Impacts (Scope 2) greenhouse gas emissions Performance Data Summary (in tonnes) and, where appropriate, intensity (e.g. per unit of production volume, per facility) KPI A1.3 Total hazardous waste produced Performance Data Summary (in tonnes) and, where appropriate, intensity (e.g. per unit of production We do not consider Swire Properties to be a major producer of volume, per facility) hazardous waste. The total amount of hazardous waste disclosed in the Performance Data Summary represents the total amount of hazardous waste produced by both Swire Properties and our building occupants. KPI A1.4 Total non-hazardous waste produced Performance Data Summary (in tonnes) and, where appropriate, intensity (e.g. per unit of production The total amount of non-hazardous waste disclosed in the volume, per facility) Performance Data Summary represents the total amount of non-hazardous waste produced by both Swire Properties and our building occupants. SUSTAINABLE DEVELOPMENT REPORT 2022 299
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Aspects, References and Remarks General Description (Unless otherwise specified, references are made to sections of the Disclosure, KPIs Sustainable Development Report 2022) Aspect A1 Emissions KPI A1.5 Description of emissions target(s) set 2025 and 2030 Targets and steps taken to achieve them Performance (Environment) – Profile of Environmental Impacts Performance (Environment) – Climate Change Performance (Environment) – Energy KPI A1.6 Description of how hazardous and non- 2025 and 2030 Targets hazardous wastes are handled, and a Performance (Environment) – Resource and Circularity description of reduction target(s) set and steps taken to achieve them Aspect A2 Use of Resources General Policies on the efficient use of resources, Partners Disclosure including energy, water and other raw Performance (Environment) materials Climate-related Financial Disclosures Corporate website – Sustainable Development Policy Corporate website – Environmental Policy Corporate website – Energy Policy Corporate website – Resource and Circularity Policy Corporate website – Water Policy Swire Group website – Swire Pacific Sustainable Procurement Policy KPI A2.1 Direct and/or indirect energy Performance (Environment) – Profile of Environmental Impacts consumption by type (e.g. electricity, Performance Data Summary gas or oil) in total (kWh in ’000s) and intensity (e.g. per unit of production volume, per facility) KPI A2.2 Water consumption in total and Performance (Environment) – Profile of Environmental Impacts intensity (e.g. per unit of production Performance Data Summary volume, per facility) KPI A2.3 Description of energy use efficiency 2025 and 2030 Targets target(s) set and steps taken to achieve Performance (Environment) – Energy them KPI A2.4 Description of whether there is any issue 2025 and 2030 Targets in sourcing water that is fit for purpose, Performance (Environment) – Profile of Environmental Impacts water efficiency target(s) set and steps Performance (Environment) – Water taken to achieve them In 2022, we did not encounter any problems in sourcing water for daily operations. KPI A2.5 Total packaging material used for In 2022, the total amount of packaging material used by Swire finished products (in tonnes), and if Properties, mainly by Swire Hotels for food packaging is 14 applicable, with reference to per unit tonnes. produced SUSTAINABLE DEVELOPMENT REPORT 2022 300
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Aspects, References and Remarks General Description (Unless otherwise specified, references are made to sections of the Disclosure, KPIs Sustainable Development Report 2022) Aspect A3 The Environment and Natural Resources General Policies on minimising the issuer’s Partners Disclosure significant impacts on the environment Performance (Environment) and natural resources Climate-related Financial Disclosures Corporate website – Sustainable Development Policy Corporate website – Environmental Policy Corporate website – Climate Change Policy Corporate website – Energy Policy Corporate website – Resource and Circularity Policy Corporate website – Water Policy Corporate website – Supplier Code of Conduct KPI A3.1 Description of the significant impacts 2025 and 2030 Targets of activities on the environment and Partners natural resources and the actions taken Performance (Environment) to manage them Climate-related Financial Disclosures Aspect A4 Climate Change General Policies on identification and mitigation Performance (Environment) – Climate Change Disclosure of significant climate-related issues Performance (Environment) – Energy which have impacted, and those which Climate-related Financial Disclosures may impact, the issuer Corporate website – Climate Change Policy Corporate website – Energy Policy KPI A4.1 Description of the significant climate- 2025 and 2030 Targets related issues which have impacted, and Performance (Environment) – Climate Change those which may impact, the issuer, and Climate-related Financial Disclosures the actions taken to manage them B. Social Employment and Labour Practices Aspect B1 Employment General Information on: People Disclosure (a) the policies; and Corporate website – Corporate Code of Conduct (b) compliance with relevant laws and Corporate website – Diversity and Inclusion Policy regulations that have a significant Corporate website – Human Rights Policy impact on the issuer Corporate website – Remuneration Policy relating to compensation and dismissal, Corporate website – Board Diversity Policy recruitment and promotion, working hours, rest periods, equal opportunity, Corporate website – Parental Leave Policy and Guidelines diversity, anti-discrimination, and other Corporate website – Respect in the Workplace Policy benefits and welfare Corporate website – Staff Grievance Policy In 2022, there were no confirmed incidents of non-compliance with such laws or regulations, which have a significant impact on Swire Properties. KPI B1.1 Total workforce by gender, employment People - Employment Profile type (for example, full- or part-time), age Performance Data Summary group and geographical region KPI B1.2 Employee turnover rate by gender, age Performance Data Summary group and geographical region SUSTAINABLE DEVELOPMENT REPORT 2022 301
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Aspects, References and Remarks General Description (Unless otherwise specified, references are made to sections of the Disclosure, KPIs Sustainable Development Report 2022) Aspect B2 Health and Safety General Information on: People – Occupational Health and Safety Disclosure (a) the policies; and Corporate website – Health & Safety Policy (b) compliance with relevant laws and regulations that have a significant In 2022, there were no confirmed incidents of non-compliance impact on the issuer with such laws or regulations, which have a significant impact on relating to providing a safe working Swire Properties. environment and protecting employees from occupational hazards KPI B2.1 Number and rate of work-related People - Occupational Health and Safety fatalities occurred in each of the past Performance Data Summary three years including the reporting year KPI B2.2 Lost days due to work injury People - Occupational Health and Safety Performance Data Summary KPI B2.3 Description of occupational health and People - Occupational Health and Safety safety measures adopted, and how they are implemented and monitored Aspect B3 Development and Training General Policies on improving employees’ People - Talent Management Disclosure knowledge and skills for discharging duties at work. Description of training activities KPI B3.1 The percentage of employees trained Performance Data Summary by gender and employee category (e.g. senior management, middle management) KPI B3.2 The average training hours completed People - Talent Management per employee by gender and employee Performance Data Summary category Aspect B4 Labour Standards General Information on: Partners – Suppliers Disclosure (a) the policies; and Corporate website – Corporate Code of Conduct (b) compliance with relevant laws and Corporate website – Human Rights Policy regulations that have a significant Corporate website – Supplier Code of Conduct impact on the issuer relating to preventing child and forced In 2022, there were no confirmed incidents of non-compliance labour with such laws or regulations, which have a significant impact on Swire Properties. KPI B4.1 Description of measures to review Partners – Suppliers employment practices to avoid child and Corporate website – Corporate Code of Conduct forced labour Corporate website – Human Rights Policy Corporate website – Supplier Code of Conduct Corporate website – Staff Grievance Policy Corporate website – Whistleblowing Policy SUSTAINABLE DEVELOPMENT REPORT 2022 302
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Aspects, References and Remarks General Description (Unless otherwise specified, references are made to sections of the Disclosure, KPIs Sustainable Development Report 2022) KPI B4.2 Description of steps taken to eliminate Partners – Suppliers such practices when discovered Corporate website – Corporate Code of Conduct Corporate website – Human Rights Policy Corporate website – Supplier Code of Conduct Corporate website – Staff Grievance Policy Corporate website – Whistleblowing Policy In 2022, we did not discover any such practices in our operations. Operating Practices Aspect B5 Supply Chain Management General Policies on managing environmental Partners – Suppliers Disclosure and social risks of the supply chain Corporate website – Supplier Code of Conduct KPI B5.1 Number of suppliers by geographical Partners – Suppliers region KPI B5.2 Description of practices relating Partners – Suppliers to engaging suppliers, number of Corporate website – Supplier Code of Conduct suppliers where the practices are Corporate website – Human Rights Policy being implemented, and how they are implemented and monitored Corporate website – Whistleblowing Policy KPI B5.3 Description of practices used to identify Partners – Suppliers environmental and social risks along Corporate website – Supplier Code of Conduct the supply chain, and how they are implemented and monitored KPI B5.4 Description of practices used to promote Partners – Suppliers environmentally preferable products and services when selecting suppliers, and how they are implemented and monitored Aspect B6 Product Responsibility General Information on: Partners Disclosure (a) the policies; and Performance (Environment) (b) compliance with relevant laws and Performance (Economic) regulations that have a significant Corporate website – Corporate Code of Conduct impact on the issuer Corporate website – Privacy Policy relating to health and safety, advertising, Corporate website – Whistleblowing Policy labelling and privacy matters relating to products and services provided and methods of redress In 2022, there were no confirmed incidents of non-compliance with such laws or regulations, which have a significant impact on Swire Properties. KPI B6.1 Percentage of total products sold or In 2022, we were not aware of any recall concerning the provision shipped subject to recalls for safety and and use of products and services for safety and health reasons health reasons that have a significant impact on Swire Properties. KPI B6.2 Number of products and service related In 2022, there were no substantiated complaints received complaints received and how they are relating to the provision and use of products and services that dealt with have a significant impact on Swire Properties. SUSTAINABLE DEVELOPMENT REPORT 2022 303
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Aspects, References and Remarks General Description (Unless otherwise specified, references are made to sections of the Disclosure, KPIs Sustainable Development Report 2022) KPI B6.3 Description of practices relating to Performance (Economic) observing and protecting intellectual Corporate website – Corporate Code of Conduct property rights KPI B6.4 Description of quality assurance process Performance (Environment) and recall procedures People – Occupational Health and Safety We did not consider that recall procedures are material to our operations. KPI B6.5 Description of consumer data protection Partners – Customers and privacy policies, and how they are Performance (Economic) – Corporate Governance implemented and monitored Corporate website – Corporate Code of Conduct Corporate website – Privacy Policy Corporate website – Whistleblowing Policy Aspect B7 Anti-corruption General Information on: Performance (Economic) – Corporate Governance Disclosure (a) the policies; and Corporate website – Anti-Bribery and Corruption Policy (b) compliance with relevant laws and Corporate website – Corporate Code of Conduct regulations that have a significant Corporate website – Whistleblowing Policy impact on the issuer relating to bribery, extortion, fraud and In 2022, there were no confirmed incidents of non-compliance money laundering with such laws or regulations, which have a significant impact on Swire Properties. KPI B7.1 Number of concluded legal cases Performance (Economic) – Corporate Governance regarding corrupt practices brought Performance Data Summary against the issuer or its employees during the reporting period and the outcomes of the cases In 2022, there were no concluded legal cases regarding corrupt practices brought against Swire Properties or its employees. KPI B7.2 Description of preventive measures and Performance (Economic) whistle-blowing procedures, and how Corporate website – Corporate Code of Conduct they are implemented and monitored Corporate website – Whistleblowing Policy KPI B7.3 Description of anti-corruption training Performance (Economic) – Corporate Governance provided to directors and staff Community Aspect B8 Community Investment General Policies on community engagement Materiality Disclosure to understand the needs of the Places communities where the issuer operates People – Volunteering and to ensure its activities take into consideration the communities’ Corporate website – Community Ambassador Programme interests Corporate website – Community Caring Fund Corporate website – Community Programmes KPI B8.1 Focus areas of contribution (e.g. Places education, environmental concerns, People – Volunteering labour needs, health, culture, sport) KPI B8.2 Resources contributed (e.g. money or Places time) to the focus area People – Volunteering SUSTAINABLE DEVELOPMENT REPORT 2022 304
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) ISSB Exposure Draft IFRS S2 Climate-related Disclosures Content Index We support the latest international reporting standard to provide consistent, timely and comparable information related to climate-related issues. In 2022, we began mapping our climate disclosures to the recommendations of the International Sustainability Standards Board's (ISSB) Exposure Draft IFRS S2 Climate-related Disclosures. References and Remarks Disclosure Description (Unless otherwise specified, references are made to sections of the Sustainable Development Report 2022) Governance (4) The objective of climate-related financial disclosures on governance is to enable users of general purpose financial reporting to understand the governance processes, controls and procedures used to monitor and manage climate-related risks and opportunities. (5) To achieve this objective, an entity shall disclose information about the governance body or bodies (which can include a board, committee or equivalent body charged with governance) with oversight of climate-related risks and opportunities, and information about management’s role in those processes. 5(a) The identity of the body or individual within a body responsible for oversight SD Governance of climate-related risks and opportunities; Climate-related Financial Disclosures Annual Report 2022 – Corporate Governance 5(b) how the body’s responsibilities for climate-related risks and opportunities are SD Governance reflected in the entity’s terms of reference, board mandates and other related Climate-related Financial Disclosures policies; Performance (Economic) Annual Report 2022 – Corporate Governance Annual Report 2022 – Risk Management Corporate Website – Terms of Reference for Environmental, Social and Governance Steering Committee Corporate Website – Climate Change Policy 5(c) how the body ensures that the appropriate skills and competencies are Climate-related Financial Disclosures available to oversee strategies designed to respond to climate-related risks Annual Report 2022 – Corporate and opportunities; Governance 5(d) how and how often the body and its committees (audit, risk or other SD Governance committees) are informed about climate-related risks and opportunities; Climate-related Financial Disclosures 5(e) how the body and its committees consider climate-related risks and SD Governance opportunities when overseeing the entity’s strategy, its decisions on major Climate-related Financial Disclosures transactions, and its risk management policies, including any assessment of Performance (Economic) trade-offs and analysis of sensitivity to uncertainty that may be required; 5(f) how the body and its committees oversee the setting of targets related to SD Governance significant climate-related risks and opportunities, and monitor progress Performance (Environment) towards them, including whether and how related performance metrics are Climate-related Financial Disclosures included in remuneration policies; and Performance (Economic) 2025 and 2030 Targets Corporate Website – Terms of Reference for Environmental, Social and Governance Steering Committee Corporate Website – Terms of Reference for Remuneration Committee Corporate website – Remuneration Policy 5(g) a description of management’s role in assessing and managing climate- SD Governance related risks and opportunities, including whether that role is delegated to Climate-related Financial Disclosures a specific management-level position or committee and how oversight is Performance (Economic) exercised over that position or committee. The description shall include Annual Report 2022 – Risk Management information about whether dedicated controls and procedures are applied to management of climate-related risks and opportunities and, if so, how they are integrated with other internal functions. SUSTAINABLE DEVELOPMENT REPORT 2022 305
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) References and Remarks Disclosure Description (Unless otherwise specified, references are made to sections of the Sustainable Development Report 2022) Strategy (7) The objective of climate-related financial disclosures on strategy is to enable users of general purpose financial reporting to understand an entity’s strategy for addressing significant climate-related risks and opportunities. 8(a) the significant climate-related risks and opportunities that it reasonably See the reference for paragraph 9 expects could affect its business model, strategy and cash flows, its access to finance and its cost of capital, over the short, medium or long term; 8(b) the effects of significant climate-related risks and opportunities on its business See the reference for paragraph 12 model and value chain; 8(c) the effects of significant climate-related risks and opportunities on its strategy See the reference for paragraph 13 and decision-making, including its transition plans; 8(d) the effects of significant climate-related risks and opportunities on its financial See the reference for paragraph 14 position, financial performance and cash flows for the reporting period, and the anticipated effects over the short, medium and long term — including how climate-related risks and opportunities are included in the entity’s financial planning; and 8(e) the climate resilience of its strategy (including its business model) to See the reference for paragraph 15 significant physical risks and significant transition risks. Climate-related risks and opportunities (9) An entity shall disclose information that enables users of general purpose financial reporting to understand the significant climate-related risks and opportunities that could reasonably be expected to affect the entity’s business model, strategy and cash flows, its access to finance and its cost of capital, over the short, medium or long term. 9(a) a description of significant climate-related risks and opportunities and the Performance (Environment) time horizon over which each could reasonably be expected to affect its Climate-related Financial Disclosures business model, strategy and cash flows, its access to finance and its cost of Performance (Economic) capital, over the short, medium or long term. Annual Report 2022 – Risk Management 9(b) how it defines short, medium and long term and how these definitions are linked to the entity’s strategic planning horizons and capital allocation plans. 9(c) whether the risks identified are physical risks or transition risks. Climate-related risks and opportunities (10) In identifying the significant climate-related risks and opportunities described in paragraph 9(a), an entity shall refer to the disclosure topics defined in the industry disclosure requirements. (11) In preparing disclosures to fulfil the requirements in paragraphs 12–15, an entity shall refer to and consider the applicability of cross-industry metric categories and the industry-based metrics associated with disclosure topics, as described in paragraph 20. 12(a) a description of the current and anticipated effects of significant climate- Partners related risks and opportunities on its value chain; and Performance (Environment) 12(b) a description of where in its value chain significant climate-related risks and Climate-related Financial Disclosures opportunities are concentrated. Performance (Economic) Strategy and decision-making (13) An entity shall disclose information that enables users of general purpose financial reporting to understand the effects of significant climate-related risks and opportunities on its strategy and decision-making, including its transition plans. 13(a) how it is responding to significant climate-related risks and opportunities including how it plans to achieve any climate-related targets it has set. (i) information about current and anticipated changes to its business model, including: (1) about changes the entity is making in strategy and resource allocation Partners to address the risks and opportunities identified in paragraph 12. This Performance (Environment) information includes plans and critical assumptions for legacy assets, Climate-related Financial Disclosures including strategies to manage carbon-energy-and water-intensive Performance (Economic) operations, and to decommission carbon-energy- and water-intensive Annual Report 2022 – Key Business assets. Strategies (2) information about direct adaptation and mitigation efforts it is Annual Report 2022 – Risk Management undertaking. (3) information about indirect adaptation and mitigation efforts it is Partners undertaking. Performance (Environment) SUSTAINABLE DEVELOPMENT REPORT 2022 306
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) References and Remarks Disclosure Description (Unless otherwise specified, references are made to sections of the Sustainable Development Report 2022) (ii) how these plans will be resourced. SD Governance Partners Performance (Environment) Climate-related Financial Disclosures Performance (Economic) 13(b) information regarding climate-related targets for these plans including: (i) the processes in place for review of the targets; SD Governance Performance (Environment) Climate-related Financial Disclosures 2025 and 2030 Targets (ii) the amount of the entity’s emission target to be achieved through emission Performance (Environment) reductions within the entity’s value chain; Climate-related Financial Disclosures 2025 and 2030 Targets (iii) the intended use of carbon offsets in achieving emissions targets. In SD Governance explaining the intended use of carbon offsets the entity shall disclose Performance (Environment) information including: Climate-related Financial Disclosures (1) the extent to which the targets rely on the use of carbon offsets; Corporate Website – Climate Change (2) whether the offsets will be subject to a third-party offset verification or Policy certification scheme (certified carbon offset), and if so, which scheme, or schemes; (3) the type of carbon offset, including whether the offset will be nature- based or based on technological carbon removals and whether the amount intended to be achieved is through carbon removal or emission avoidance; and (4) any other significant factors necessary for users to understand the credibility and integrity of offsets intended to be used by the entity. 13(c) quantitative and qualitative information about the progress of plans disclosed Partners in prior reporting periods in accordance with paragraph 13(a)–(b). Performance (Environment) Financial position, financial performance and cash flows (14) An entity shall disclose information that enables users of general purpose financial reporting to understand the effects of significant climate-related risks and opportunities on its financial position, financial performance and cash flows for the reporting period, and the anticipated effects over the short, medium and long term — including how climate-related risks and opportunities are included in the entity’s financial planning. An entity shall disclose quantitative information unless it is unable to do so. If an entity is unable to provide quantitative information, it shall provide qualitative information. When providing quantitative information, an entity can disclose single amounts or a range. 14(a) how significant climate-related risks and opportunities have affected its most Climate-related Financial Disclosures recently reported financial position, financial performance and cash flows; Performance (Economic) 14(b) information about the climate-related risks and opportunities identified in Climate-related Financial Disclosures paragraph 14(a) for which there is a significant risk that there will be a material Performance (Economic) adjustment to the carrying amounts of assets and liabilities reported in the financial statements within the next financial year; 14(c) how it expects its financial position to change over time, given its strategy to Climate-related Financial Disclosures address significant climate-related risks and opportunities, reflecting: Performance (Economic) (i) its current and committed investment plans and their anticipated effects Annual Report 2022 – Key Business on its financial position; Strategies (ii) its planned sources of funding to implement its strategy; Annual Report 2022 – Management Discussion & Analysis 14(d) how it expects its financial performance to change over time, given its strategy Climate-related Financial Disclosures to address significant climate-related risks and opportunities. SUSTAINABLE DEVELOPMENT REPORT 2022 307
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) References and Remarks Disclosure Description (Unless otherwise specified, references are made to sections of the Sustainable Development Report 2022) Climate resilience (15) An entity shall disclose information that enables users of general purpose financial reporting to understand the resilience of the entity’s strategy (including its business model) to climate-related changes, developments or uncertainties — taking into consideration an entity’s identified significant climate-related risks and opportunities and related uncertainties. The entity shall use climate-related scenario analysis to assess its climate resilience unless it is unable to do so. If an entity is unable to use climate-related scenario analysis, it shall use an alternative method or technique to assess its climate resilience. When providing quantitative information, an entity can disclose single amounts or a range. 15(a) the results of the analysis of climate resilience, which shall enable users to understand: (i) the implications, if any, of the entity’s findings for its strategy, including how Performance (Environment) it would need to respond to the effects identified in paragraph 15(b)(i)(8) or Climate-related Financial Disclosures 15(b)(ii)(6); (ii) the significant areas of uncertainty considered in the analysis of climate Climate-related Financial Disclosures resilience; (iii) the entity’s capacity to adjust or adapt its strategy and business model over SD Governance the short, medium and long term to climate developments in terms of: Performance (Environment) (1) the availability of, and flexibility in, existing financial resources, including Climate-related Financial Disclosures capital, to address climate-related risks, and/or to be redirected to take Annual Report 2022 – Management advantage of climate-related opportunities; Discussion & Analysis (2) the ability to redeploy, repurpose, upgrade or decommission existing assets; and (3) the effect of current or planned investments in climate-related mitigation, adaptation or opportunities for climate resilience. 15(b) how the analysis has been conducted, including: Climate-related Financial Disclosures (i) when climate-related scenario analysis is used: (1) which scenarios were used for the assessment and the sources of the scenarios used; (2) whether the analysis has been conducted by comparing a diverse range of climate-related scenarios; (3) whether the scenarios used are associated with transition risks or increased physical risks; (4) whether the entity has used, among its scenarios, a scenario aligned with the latest international agreement on climate change; (5) an explanation of why the entity has decided that its chosen scenarios are relevant to assessing its resilience to climate-related risks and opportunities; (6) the time horizons used in the analysis; (7) the inputs used in the analysis, including — but not limited to — the scope of risks, the scope of operations covered, and details of the assumptions; and (8) assumptions about the way the transition to a lower-carbon economy will affect the entity, including policy assumptions for the jurisdictions in which the entity operates; assumptions about macroeconomic trends; energy usage and mix; and technology. SUSTAINABLE DEVELOPMENT REPORT 2022 308
MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) References and Remarks Disclosure Description (Unless otherwise specified, references are made to sections of the Sustainable Development Report 2022) Risk management (16) The objective of climate-related financial disclosures on risk management is to enable users of general purpose financial reporting to understand the process, or processes, by which climate-related risks and opportunities are identified, assessed and managed. 17(a) The process, or processes, it uses to identify climate-related: SD Governance (i) risks; and Climate-related Financial Disclosures (ii) opportunities; Performance (Economic) 17(b) the process, or processes, it uses to identify climate-related risks for risk Annual Report 2022 – Risk Management management purposes, including when applicable: (i) how it assesses the likelihood and effects associated with such risks (such as the qualitative factors, quantitative thresholds and other criteria used); (ii) how it prioritises climate-related risks relative to other types of risks, including its use of risk-assessment tools; (iii) the input parameters it uses; and (iv) whether it has changed the processes used compared to the prior reporting period; 17(c) the process, or processes, it uses to identify, assess and prioritise climate- related opportunities; 17(d) the process, or processes, it uses to monitor and manage the climate-related: (i) risks, including related policies; and (ii) opportunities, including related policies; 17(e) the extent to which and how the climate-related risk identification, assessment and management process, or processes, are integrated into the entity’s overall risk management process; and 17(f) the extent to which and how the climate-related opportunity identification, assessment and management process, or processes, are integrated into the entity’s overall management process. Metrics and targets (19) The objective of climate-related financial disclosures on metrics and targets is to enable users of general purpose financial reporting to understand how an entity measures, monitors and manages its significant climate-related risks and opportunities. These disclosures shall enable users to understand how the entity assesses its performance, including progress towards the targets it has set. 20(a) information relevant to the cross-industry metric categories, which are See the reference for paragraph 21 relevant to entities regardless of industry and business model; 20(b) industry-based metrics which are associated with disclosure topics and See the reference for paragraph 21 relevant to entities that participate within an industry, or whose business models and underlying activities share common features with those of the industry; 20(c) other metrics used by the board or management to measure progress towards See the reference for paragraph 21 the targets identified in paragraph 9(d); and 20(d) targets set by the entity to mitigate or adapt to climate-related risks or See the reference for paragraph 23 maximise climate-related opportunities. SUSTAINABLE DEVELOPMENT REPORT 2022 309