Introduction Our business SwireTHRIVE About our report Other ESG disclosures Appendices Overview Our approach ESG risk management TCTCFFDD Key climate-related transition risks Risk category Risk Financial implications Time horizon Mitigation strategies Markets • Increase in • Higher insurance • Medium – • Conducted detailed physical climate risk insurance premiums costs Long-term assessment of our assets • Our business continuity plans cover extreme weather events • Swire Properties integrates sustainability criteria into the risk assessment process for new acquisitions Investments Due to the high levels of associated emissions in our aviation investments, we have included a summary of their potential climate-related risks. Risk category Risk Financial implications Time horizon Mitigation strategies Physical risks Acute • Coastal 昀氀ooding • Flight delays and • Long-term • Majority of their 昀氀ights are to or diversions due from the Hong Kong International Airport (HKIA). They work closely with to 昀氀ooding at airports, customer the Airport Authority of the Hong compensation and Kong International Airport (AAHK) in physical damage to assessing medium to long-term climate aircraft and other resilience at HKIA assets • Tropical cyclones • Flight delays and • Long-term diversions, customer compensation and physical damage to aircraft and other assets. (e.g. hangars at airports) Chronic • Extreme • Lower productivity • Long-term temperatures and due to extreme heat heat stress • Restrictions on working outside Transition risks Policy & • Carbon pricing for • Carbon taxes and • Medium - • Fuel e昀케ciency improvements regulations aviation more spending on Long-term • Fleet renewal • Committed to using Sustainable Aviation o昀昀sets Fuel (SAF) for 10% of their jet fuel Reputational • Vili昀椀cation of • Less demand for and • Medium - consumption by 2030 damage aviation – 昀氀ight therefore revenue Long-term • Invested in SAF manufacturer Fulcrum shaming from air travel Bioenergy • SAF o昀昀take agreements in place with Markets • Changes in demand • Less demand for • Medium - several suppliers for products and and therefore Long-term • Corporate Sustainable Aviation Fuel services revenue from air Programme travel, particularly from executives doing more video conferencing SWIRE PACIFIC — SUSTAINABLE DEVELOPMENT REPORT 2022 — 19