This has been a landmark year for our sustainability efforts. We were delighted to secure the No.1 position in the Dow Jones Best-in-Class World Index 2024 (formerly known as Dow Jones Sustainability World Index), marking a monumental milestone in our journey towards a more sustainable future. Achieving global sustainability leadership six years ahead of our 2030 target underlines the success of our SD 2030 Strategy, and reaffirms our commitment to integrating sustainability into every aspect of our business.

We were also honoured to be named “Global Sector Leader – Listed” for the eighth consecutive year and we successfully maintained our “Global Development Sector Leader” title for the fifth year under the Mixed Use Sector for the Global Real Estate Sustainability Benchmark (“GRESB”). Additionally, we ranked first on the Hang Seng Corporate Sustainability Index for the seventh consecutive year.

Our progress towards a net-zero vision and decarbonisation across the building lifecycle this year has been exemplary. We achieved an absolute reduction of 40% in our Scope 1 and Scope 2 emissions compared to our 2019 baseline, surpassing the 25% reduction required to meet our science-based targets set for 2025. This success is attributed to our continuous retrofitting of energy-efficient building systems and the successful rollout of Photovoltaics, Energy Storage, Direct Current, and Flexible Power (“PEDF”) systems across our portfolios in Hong Kong and the Chinese Mainland.

To accelerate the adoption of low carbon emissions steel in the real estate industry, we endorsed the “Collaboration Statement on Low Carbon Emissions Steel for Real Estate in China”. This landmark statement, convened by the China Iron and Steel Association, the Urban Land Institute’s Greenprint, and the World Steel Association, aims to address embodied carbon emissions through enhanced collaboration across the value chain.

In 2024, we increased our off-site renewable electricity procurement for our Beijing portfolio to nearly 100%, covering both landlord and tenant operations. As a result, over 60% of electricity consumption in our Chinese Mainland portfolios is now sourced from renewable energy. With support from our tenant, HSBC, Taikoo Hui Guangzhou (Tower 2) received both LEED Zero Carbon and LEED Zero Energy certifications, making it the second and largest office in a mixed-use project in the world to achieve this recognition.

We have strengthened stakeholder engagement through initiatives such as the Green Performance Pledge (“GPP”), Green Kitchen Initiative (“GKI”), and the new Green Retail Partnership (“GRP”). The GPP continues to flourish, and enjoys enthusiastic cross-sector support. By the end of 2024, we had 129 tenants on board, occupying over 4.5 million square feet of lettable floor area. Collectively, GPP tenants reduced their electricity use intensity by 3.8%, saving 750,000 kWh of electricity and increasing waste diversion rates by 10% compared to 2023.

The Green Kitchen Initiative reached a key milestone with the launch of the GKI 3.0, introducing recognition schemes for design and fit-out, and operational practices. By the end of the year, the programme had 121 participants across Hong Kong and the Chinese Mainland. Building on these successful partnerships, we launched the GRP Framework in 2024, focusing on sustainable shop design, data sharing, and performance improvements.

In November, we announced a strategic partnership under the GRP with luxury conglomerate LVMH, advancing our shared sustainability vision and setting a new standard for impact and ambition in our portfolios across these key markets.

The ten-year Taikoo Place Redevelopment Project concluded in 2024, creating a thriving, sustainable Global Business District with modern workspaces and a wide array of amenities focused on health, wellness and sustainability. In recognition of our pioneering placemaking work, Taikoo Place became the first development in the Greater Bay Area to receive Platinum certification under LEED v4.1 for Communities: Existing, highlighting our leading efforts in integrative planning, green spaces and connectivity.

The 2024 White Christmas Street Fair, designed and run by students from our Swire Properties Placemaking Academy (“SPPA”), was our largest event yet, fostering community spirit and empowering Hong Kong's youth. We progressed towards becoming a zero-waste event, achieving a waste diversion rate of 93.8%.

We also launched the People+ employee wellness programme at our workplace, centered around three pillars: Community, Sports, and Wellbeing. Our dedication to fostering an inclusive and wellness-focused work environment was recognised by the Randstad Most Attractive Employer Awards, which identified Swire Properties as the most attractive company in the Property and Real Estate sector in Hong Kong.

In 2024 we made significant progress with our disclosures, integrating nature-related disclosures with reference to the Task Force on Nature-related Financial Disclosures (“TNFD”) Recommendations with our established climate-related disclosures. We also issued Green Dim Sum Bonds of RMB3.5 billion, our largest offshore RMB bond to date, with approximately 70% of our bond and loan facilities now sourced from green financing.

I am delighted by the recognition that we have received and by our ability to consistently meet and exceed our ambitious sustainability targets. I am also grateful for the unwavering support from our tenants, business partners and the talented team at Swire Properties.

The successful realisation of our SD 2030 vision is a testament to the team’s hard work and serves as a strong motivation as we embark upon the next chapter of our sustainability journey. Towards the end of 2024, we launched a comprehensive review of our SD 2030 Strategy, which will continue into 2025. This review will enhance our placemaking and sustainability efforts, ensuring that all our initiatives remain relevant and impactful. Thank you for your continued and unwavering support.