2024-10-30
Sun Hung Kai Properties releases 2023/24 Sustainability Report on ESG Performance and Scope 3 Emissions Inventory
Sun Hung Kai Properties Limited (SHKP) recently released the 2023/24 Sustainability Report, which showcases its latest progress and achievements on Environmental, Social and Governance (ESG) and sustainability during the reporting year.
This year, SHKP conducted a thorough materiality assessment and stakeholder engagement, following the emerging global concept of double materiality. This provides an important refreshed understanding of the impact and significance of ESG issues for SHKP and the wider community.
In the report, SHKP enhanced its climate-related disclosure by adhering to the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and the International Sustainability Standards Board (ISSB)’s IFRS S2 principles. SHKP also disclosed its scope 3 emissions from the value chain for the first time.
The Group’s sustainability initiatives have earned local and international recognitions, including its debut in the Dow Jones Sustainability Asia Pacific Index, and the second consecutive year in the S&P Global Sustainability Yearbook 2024. For the first time, SHKP has been recognised as a regional top-rated ESG performer by Morningstar Sustainalytics.
Below are the highlights of the Group’s sustainability initiatives:
Environment
The Group is on track to meeting the 10-year environmental targets. Having achieved its FY2029/30 greenhouse gas emissions target, the Group has set a new target for the future. As of June 2024, the Group has earned 150 green-building-related certificates1 for 123 of its projects in Hong Kong. To drive the decarbonisation in the community, the Group is building one of Hong Kong’s largest solar energy networks and expanding its electric vehicle charging facilities. By the end of 2025, the Group expects to install around 20,000 solar panels that could generate around 8.96 million kWh of electricity annually, and reduce carbon emissions by around 4,000 tonnes.
Valais - Residential development
People
The Group aims to create a people-centred working environment. During the reporting year, SHKP has made a significant milestone by becoming a signatory to the United Nations Global Compact, committing to sustainable and socially responsible practices. The Group recognises the importance of its employees and provides comprehensive training tailored to their needs. Throughout the reporting year, around 302,000 hours of ESG-related training were delivered.
Building Information Modelling (BIM) training for Sanfield’s summer internship
Customers
Since 2013, the Group has been offering an industry-leading 3-year warranty to first-hand purchasers of newly sold developments in Hong Kong. This year, SHKP signed its first ever green lease agreement with its anchor tenant, UBS, at International Gateway Centre, ensuring sustainable infrastructure standards are met. SHKP also invests in state-of-the-art technology such as 5G applications and ensures the health and wellbeing of its customers and tenants by earning WELL certifications and implementing various initiatives. The High Speed Rail West Kowloon Terminus Development project has adopted numerous health and wellness measures and earned six prestigious global sustainability-related certificates. The project is also undergoing assessments for WiredScore and SmartScore.
High Speed Rail West Kowloon Terminus Development project (rendering)
Supply Chain
The Group focuses on building long-term, mutually beneficial relationships with its suppliers and contractors through active engagement and management. This year, Sanfield has reached another milestone in decarbonisation by replacing diesel construction equipment with electric alternatives and launching the Sustainability-linked Supplier Payment Services (SPS) programme, the first of its kind in Hong Kong’s construction industry. Realising the importance of regular training for contractors and subcontractors, the Group provided health-and-safety training to 1.6 million attendances during the reporting year.
Sanfield unveiled the SPS programme
SHKP invests in promoting reading and holistic development among youth, encouraging sports for charity and supporting the underprivileged. The Group’s community initiatives, such as the free lent of land for the Government’s Light Public Housing, the development of transitional social housing at United Court, and the latest mega sports-cum-entertainment project, GO PARK Sai Sha, demonstrate its commitment to social integration, wellbeing and community development. In addition, 3,200 members of the SHKP Volunteer Team contributed around 70,000 hours of charity work in 2023.
GO PARK Sai Sha
1 Green-building-related certificates include the BEAM Plus New Buildings and Existing Buildings (both Comprehensive Scheme and Selective Scheme), LEED or BREEAM certificates received by projects under development and properties owned or managed by SHKP in Hong Kong.