Introduction Our business SwireTHRIVE About our report Other ESG disclosures Appendices Overview OOuurr appr approaoacchh ESG risk management TCFD Swire Properties targets for at least 80% Sustainable The Board currently comprises 昀椀ve of its bond and loan facilities to come development fund Executive Directors, two Non-Executive from green 昀椀nancing by 2030. Around Directors and seven Independent Non- Our sustainable development fund (SD 61% of its current 昀椀nancing is from green Executive Directors. Members are Fund) o昀昀ers 昀椀nancial support to operating bonds, green loans, and sustainability- companies for projects which can provide selected based on their quali昀椀cations, linked loans. Funds are used for green skills and experience, knowledge of our long-term environmental bene昀椀ts but building developments and the adoption businesses, and how they impact Board- cannot be justi昀椀ed by reference to our of technologies that will save energy and level diversity. All Board members have cost of capital targets. Up to HK$100 million is available annually to support water and reduce waste. New Life Plastics relevant industry experience in either Real projects that reduce the carbon, water, Limited, a joint venture to which Swire Estate, Aviation, Food and Beverage, or and waste footprints of our operating Coca-Cola is a party, has also obtained a Trading and Industrial sectors. Four out of sustainability-linked loan. companies, in line with our targets. 昀椀ve of our Executive Directors have had executive or board experience with one or The fund has been supporting our more of our subsidiaries. Having the right operating companies since 2016. Governance of sustainable blend of skills and experience ensures the Since 2019, a new funding stream was development Board can e昀昀ectively deal with current created to support trials of innovative Our Board, led by its Chairman, is and emerging risks and opportunities. green technology solutions. Operating actively engaged in formulating and In 2022, the Board received external companies invite companies and start-ups implementing SwireTHRIVE, and is training on ESG and cyber security. Further to pitch solutions to previously identi昀椀ed ultimately accountable for sustainability information on our Board diversity, sustainability problems. Successful matters including progress against processes, and training is available in the applicants receive funding to pilot the our 2030 key performance indicators. Corporate Governance section of the solution. If the pilots are successful, they The Board provides oversight of our can be scaled up for wider use in the Swire Paci昀椀c Annual Report 2022. risk management framework and our operating companies and the Group. sustainability risks, including climate- The Board is kept informed of sustainability risks and performance by The fund allows us to test new related risks. Swire Paci昀椀c also conducts the Group Risk Management Committee technologies quickly and at relatively low regular risk identi昀椀cation, analysis, cost, to determine the solutions most and review management processes (GRMC), which reports to the Board suited to our operations and quantify their throughout the year through the Audit via the Audit Committee. The Board Committee and our Enterprise Risk monitors performance through detailed actual environmental bene昀椀ts before monthly reports on health and safety, implementation at scale. The SD Fund Management (ERM) system, including and quarterly reports on other ESG has helped accelerate SD projects across our Corporate Risk Register (see ESG risk matters. It also reviews internal and the Swire Group, including innovative management section). new technologies such as Direct Current external audit reports and feedback from Microgrids at Taikoo Li Sanlitun shopping centre in Beijing. In 2022, the fund allocated approximately HK$21 million to projects at three operating companies. Board member skills, expertise and experience Accounting, Banking and Finance Sustainable 昀椀nance Linking ESG performance metrics to our Aviation 昀椀nancing mechanisms demonstrates that we are serious about being a sustainable Digital business. Since 2020, Swire Paci昀椀c has converted three revolving credit facilities ESG totalling HK$4.2 billion into sustainability- linked loans. The interest payable is Food and Beverage reducible by reference to indicators of our ESG performance including progress Global Business towards targets for energy consumption, water usage, and diversity and inclusion. Real Estate We must also remain in the Dow Jones Sustainability Asia Paci昀椀c Index. Risk Management Sustainable 昀椀nance represented more than 35% of total 昀椀nancing across the 0% 10% 20% 30% 40% 50% 60% 70% 80% Group at the end of 2022. SWIRE PACIFIC — SUSTAINABLE DEVELOPMENT REPORT 2022 — 9