Our Environmental Policy has objectives that reflect the latest ISO 14001 management system requirements and environmental management focus areas. The policy sets out our principles and underpins our approach to managing and reducing the environmental impacts of our operations. The policy adopts a whole building lifecycle approach to identifying the environmental risks and impacts of our activities.

The policy also encourages environmentally responsible action among our stakeholders, suppliers and partners, and states that we will indicate our preferences by considering the environmental performance of our suppliers and contractors during the procurement process.

Our Performance (Environment) Working Group is responsible for implementing the Environmental 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.

Our Energy Policy’s objectives reflect the latest ISO 50001 management system requirements and the latest energy management focus areas. The policy sets out a new type of energy management approach – the adoption of an energy management hierarchy in our operations to prioritise demand reduction. In terms of residual energy demand, the policy commits us to work to increase the use of renewable energy, where applicable, through on-site renewable energy generation, purchasing off-site renewable energy that is supplied externally and other methods. It also underlines our commitment to influencing energy-related behaviour by engaging with our tenants, employees and others with whom we work.

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.

Our Water Policy cites our commitments around the responsible use of water. These include understanding the water risks in places where our developments are located; 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.

Our Biodiversity Policy reflects biodiversity-related issues that are material to Swire Properties. The policy sets out how we incorporate biodiversity considerations into our operations by minimising the adverse impacts of our developments on biodiversity and ecosystems, supporting appropriate biodiversity and conservation initiatives, promoting awareness of biodiversity and conservation issues and other measures.

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 2024, approximately 99%¹⁵ of our assets in Hong Kong and the Chinese Mainland conformed to the ISO 14001 and ISO 50001 systems. All our portfolios regularly conduct internal environmental and energy audits that are performed by the Company’s technical professionals.

The ISO system adopts a Plan-Do-Check-Act cycle, steering companies to drive continuous improvements in their operations. Carbon, energy, waste and water targets are in place to push forward these continuous improvements, and we conduct energy and waste audits and water use assessments to understand our consumption and impact and identify opportunities to further enhance efficiency.

The targets are supported by robust management systems which involve integrating technology and innovation to drive efficiency over the lifecycle of our developments and engaging our stakeholders to encourage responsible consumption and the adoption of sustainable resource practices.