Sustainability Report 2020/21

In addition to the energy reduction target, the Group also commits to a GHG emission target during the reporting year, to reduce the scope 1 and 2 GHG emissions intensity of its EOC-monitored buildings by 25% by 2029/30 against 2019/20 as the base year. This year, due to the situation beyond our control, we recorded a significant reduction of around 24% since 2019/20. Such reduction is mainly contributed by the remarkable reduction in grid emissions intensity for both utility companies in Hong Kong during the reporting period. Despite of that, we will continue to monitor our performance and review the progress made against our target, while seeking to reduce our GHG emissions intensity and striving for the target and review the target along our operations in coming years. Retrofitting measures – such as chiller sequencing optimization, LED lighting, chiller plant replacement and smart escalator sensors – enhance energy efficiency in our buildings. During the reporting year, the Group implemented more than 280 energy- saving projects, of which 90 were successfully granted CLP Eco Building Fund and three were HKE Smart Power Building Fund. Those energy-saving projects are implemented in our managed shopping malls, residential and commercial buildings. We have rolled out eco-efficiency programmes to help our shopping mall tenants optimize their energy use, and provide free energy audits and technical advice to enhance efficiency. We leverage smart technology and digital solutions to reduce energy use. IoT technology monitors and analyses energy consumption at our BEAM Plus-certified Sun Hung Kai Centre and other commercial and residential buildings. Smart systems assist efficient combinations of chillers and pumps that automatically match a building’s load. And we have implemented a protocol to automate the control of power systems, providing better data communication for energy efficiency enhancement. V City utilizes cloud-based chiller optimization for advanced data management, energy analysis and data visualization. This and other energy-saving initiatives have reduced electricity consumption at the shopping mall for five consecutive years. Electricity consumption intensities ( kWh/m 2 of gross floor area ) 135 140 145 150 155 160 165 2014/15 161.12 2015/16 157.97 2016/17 151.28 2017/18 147.91 2018/19 143.75 2019/20 139.83 2020/21 136.78 Accelerating Low-carbon Transition To adapt to the low-carbon economy, SHKP carefully considers climate change when developing energy management and strategies. We support external initiatives, such as the Government’s Climate Action Plan 2030+ and the Energy Saving Plan for Hong Kong’s Built Environment 2015-2025+. We have joined the Carbon Audit • Green Partner, have been a signatory to the Carbon Reduction Charter since 2009. In addition, since 2008, we have performed voluntary carbon audits at most of our properties. SHKP and its subsidiaries Hong Yip, Kai Shing and the Royal Plaza Hotel have also signed the Business Environment Council’s Low Carbon Charter, stepping up their efforts and commitment to decarbonization in Hong Kong. We are working with our other Royal brand hotels to commit to the charter before 2025. We have a group-wide target to reduce the electricity consumption intensity of EOC- monitored buildings by 13% by fiscal year 2029/30, against 2019/20 as the base year. This year, we achieved an electricity consumption intensity of 136.78 kWh/m 2 of gross floor area – a reduction of 2.18% since 2019/20 4 . We have adopted further energy- saving measures at our EOC-monitored buildings and all subsidiaries, including residential and commercial buildings, shopping malls and hotels. *EOC monitored 54 properties in 2014/15, 55 from 2015/16 to 2018/19, 53 in 2019/20 and 60 in 2020/21. 4 The Group has revisited the historical data and improved the data accuracy. The electricity consumption intensity in 2019/20 was 139.83 kWh/m 2 of gross floor area. Electricity Consumption Intensities of Major Buildings Monitored by the EOC, 2014/15-2020/21* Value Created for The Environment Sun Hung Kai Properties Limited • Sustainability Report 2020/21 16