Sun Hung Kai Properties Limited: Sustainability Report 2014/15

Sun Hung Kai Properties Limited
Sustainability Report 2014/15
Content
1
Our Reporting Approach
Message from the Chairman and Managing Director
Our Business
Our Approach to Sustainability
11
Value Created for Stakeholders
14
Value Created for People
19
Value Created for Customers
25
Value Created for Supply Chain
28
Value Created for Community
32
Value Created for Environment
37
Data Tables
41
Global Reporting Initiative G4 Content Index
45
Verification Statement
Our Reporting Approach

Scope of the Report
Reporting Standards
This is the fifth annual stand-alone sustainability report by Sun Hung Kai Properties Limited
(SHKP), describing the sustainability performance and initiatives of our head office and
subsidiaries in Hong Kong. These include the wholly-owned Hong Yip Service Company
Limited and Kai Shing Management Services Limited in property management, Sanfield
(Management) Limited in construction and Royal Brand hotels The Royal Garden, Royal
Park Hotel, Royal Plaza Hotel and Royal View Hotel. Also covered are major subsidiaries
SmarTone Telecommunications Holdings Limited in telecommunications and SUNeVision
Holdings Limited in information technology.
The report has been prepared in accordance with the Core option of the Global Reporting
Initiative (GRI) G4 Sustainability Reporting Guidelines and Construction and Real Estate
Sector Disclosures requirements of the guidelines. Reference is also made to the updated
Environmental, Social and Governance (ESG) Reporting Guide set out in Appendix 27 of the
Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, as
outlined in Consultation Conclusions Review of the Environmental, Social and Governance
Reporting Guide issued in December 2015 and the Ten Principles of the United Nations
Global Compact (UNGC).
Our Hong Kong operations represent the majority of SHKPs investments, and our most
significant environmental and social impact and influence is our property management,
construction and hotel businesses. However, in order to demonstrate our commitment to
better visibility of sustainability performance to stakeholders, we expand the scope of our
report to include telecommunications and IT infrastructure subsidiaries.
In line with these standards, key stakeholders and our Sustainability Steering Committee
were engaged in the preparation of this report and in reviewing the most relevant and
important sustainability issues for the Group to report on. More details can be found in
Our Approach to Sustainability section.
This report focuses on Hong Kong, which is in line with our business strategic direction.
While we will continue to expand our business on the mainland, currently it only represents
about 20% of our investments. As such, this report focuses on our businesses and operations
in Hong Kong. For more details of our businesses, please see our annual report.
Report Assurance and Verification

Hong Kong Quality Assurance Agency has provided independent verification in accordance
with the Core option of the GRI G4 Guidelines with respect to the extent of coverage and
information provided. The verification statement can be found on page 45.
This report discloses our progress on economic, environmental, social and governance
issues from 1 July 2014 to 30 June 2015, unless otherwise stated.
We welcome stakeholder feedback and suggestions.

Please contact us at:
[email protected]
Sun Hung Kai Properties Limited . Sustainability Report 2014/15
Message from the Chairman and Managing Director

I am pleased to present our 2014/15 Sustainability Report.
Building Homes with Heart is the philosophy that lies at the foundation of our culture and guides
everything we do at Sun Hung Kai Properties. As one of the largest property developers and
landlords in Hong Kong, we put this belief into practice in every aspect of our operations.
Our Group aims at sustaining our business development and growth through value creation for
our people, customers, community, the environment and supply chain. While we are committed
to creating value for stakeholders by providing customers with products and services of
impeccable quality and better returns to shareholders, we also undertake various corporate
social responsibility programmes and initiatives to make Hong Kong a better home for all.
Our core business development of properties for sale and rental business of investment
properties incorporates our commitment to quality in all dimensions. Setting an industry
benchmark since 2013, our Groups three-year quality guarantee on newly sold residential units
was the first of its kind in the territory. It is not only the driving force to make our developments
meet or even exceed homebuyers expectations, but also underpins our premium brand that we
have been building up over the years. The strong contracted property sales during the period
also reflected homebuyers trust in our products and services. On rental business, performance
was good and we continued to enhance the quality of investment properties over time to cater
to the ever-changing needs of tenants and customers. Tenants in our shopping malls generally
registered healthy sales revenue growth in the period, while shoppers enjoyed a comfortable
and trendy lifestyle environment for shopping and entertainment.
We take a proactive approach to engage different stakeholders with a particular focus on
customer views and needs, which helps shape our strategies for the long-term viability of
our business and the community. The SHKP Club, the largest Hong Kong property customer
engagement platform established in 1996, is an effective channel for two-way communication
between our Group and customers, which allows us to better serve customers and promote
social harmony through various initiatives including the Loving Home campaigns during the
period.
In an effort to help sustain our business development in particular and the society in general,
human resources play an utmost important role. We are investing in recruiting and nurturing the
best talent to provide better products and services to customers. In addition, our Group offers
extensive training and development programmes and promotes work-life balance, which are
conducive to the sustainable development and growth of our staff.
As a responsible corporate citizen, we respect the environment and set eco-friendly policies
that go beyond law and regulatory compliance. We strive to minimize our environmental
footprint arising from our business by sourcing sustainable materials, using green technologies,
implementing effective waste management practices, and taking energy and carbon reduction
initiatives. The scope for greenhouse gas emissions monitoring expanded from 44 to 80
properties in the period. At the same time, we drive sustainability down the supply chain
by working closely with our business partners and empower our customers with sustainable
options.
Going beyond, our Group adopts a three-pronged approach to fulfil its corporate social
responsibility and benefit the community at large: by promoting reading and education,
supporting sports for charity and healthy living, and caring for the underprivileged. Our reading
promotion programmes engage proactively the student and youth populations, especially the
less privileged ones, for life-enriching learning experiences. We continue our signature SHKP
Vertical Run for Charity Race to Hong Kong ICC event for the third time and take on the title
and charity sponsorships of the Sun Hung Kai Properties Hong Kong Cyclothon to promote
sports for charity, with proceeds going to benefit youth and children services. We help build
social bonds by supporting various kinds of charitable initiatives and showing care and warmth
to those in need.
This year, we have taken additional steps to provide better visibility on our sustainability
efforts to stakeholders by expanding our reporting scope to include information infrastructure
businesses. To further enhance reporting quality, we have followed Construction and Real Estate
Sector Disclosures requirements of Global Reporting Initiative G4 reporting guidelines, in
addition to the guidelines Core option. Reference is also made to the updated Environmental,
Social and Governance Reporting Guide issued by The Stock Exchange of Hong Kong Limited
in December 2015. Our initiatives cumulatively illustrate the depth and breadth of our diverse
business portfolio and the positive impact we have on people and the home we share.
We will continue to put sustainability at the heart of our corporate strategy as we go forward,
to create additional value for all stakeholders and work for the betterment of the society.
Raymond Kwok Ping-luen

Chairman & Managing Director
March 2016
Our Business
Our Business
Highlights in 2014/15
About Sun Hung Kai Properties Limited

Publicly listed in Hong Kong, with a history of over 40 years, SHKP is now one of the largest
property developers and landlords in Hong Kong. Our market position has been well
established in Hong Kong and on the mainland.
Headquartered in Hong Kong, our core business is property development for sale and rental
business of investment property. It is vertically integrated from land acquisition, project
planning, material sourcing, construction and project management through to sales and
marketing, and property management.
We are also involved in hotel, telecommunications, information technology infrastructure,
transportation and logistics, insurance and mortgage businesses.
Highlights of Hong Kong Property Business in 2014/15
Our Business
Property Business
Business Structure1
Sun Hung Kai Properties
As at 30 June 2015
HONG KONG
Property
Development
19.6 million sq.ft. under development for sale
Property
Investment
28.7 million sq.ft. of completed investment properties
Property Related
Businesses
Over 30 million sq.ft. of agricultural land (site area)
Another 2.5 million sq.ft. of investment properties under

development

Hotels
Property management
Construction
Insurance and mortgage services
Telecommunications &
Information Technology
Mobile telephone services
Infrastructure &
Other Businesses
Transport infrastructure operations and management

Port business
Air transport and logistics business
Six sites were added to our land bank with an aggregate gross floor area of 4.9 million square
feet, whereas the new sites are mainly designated for residential developments comprised
of mostly small-to-medium sized units.
Projects Completed in 2014/15
Property
Development
68.0 million sq.ft. under development
Property
Investment
11.6 million sq.ft. of completed investment properties
Diagram shows overall business structure of SHKP. For businesses covered in this report,
please refer to Our Reporting Approach on page 1.
Groups
Interest
Attributable Gross
Floor Area (sq. ft.)
Project
Location
Usage
Park Vista Phase 1
18 Castle Peak Road,

Tam Mi, Yuen Long
Residential /
Shops
100%
780,000
Mount One
39 Luen Hing Street,

Fanling
Residential /
Shops
100%
140,000
W50
50 Wong Chuk Hang

Road
Office
100%
120,000
Data centres and IT infrastructure
MAINLAND CHINA
As at June 2015, our land bank in Hong Kong amounted to a gross floor area of 50.8 million
square feet, comprising 22.1 million square feet, or 44%, of properties under development,
and 28.7 million square feet, or 56%, of completed investment properties.
Total
1,040,000
Our investment properties in Hong Kong continued to contribute significantly to our

recurrent income. The Group recorded a 7% increase in gross rental income to HK$15,675
million, while net rental income grew by 8% to HK$12,299 million, including contributions
from joint-venture projects. Occupancy rate remained high at around 95% from a diversified
investment property portfolio which the Group has developed across the territory, mostly
located strategically along railway lines.
Our Business
Hotel
Hong Kong Land Bank Composition

(50.8 million square feet of attributable gross floor area as at 30 June 2015)
44%
56%
Properties Under
Development
Completed
Investment Properties
22.1 million sq. ft.

7% Industrial
4% Hotel
1% Office
6%
Shopping Centre
/ Shops
28.7 million sq. ft.
3%
Residential
13% Industrial
12% Hotel
By Usage
10%
Hong Kong Island
37%
Shopping Centre
/ Shops
41%
New
Territories
20%
Kowloon
By Region
22%
Hong Kong
Island
By Region
Telecommunications
SmarTone
SmarTones net profit showed an impressive increase as a result of growth in both service
revenue and handset sales in 2014/15. Apart from renewing our existing 3G spectrum
licenses and acquiring an additional spectrum block for future business growth, we have
further enhanced our mobile broadband capacity and 4G coverage.
Information Technology Infrastructure
By Usage
35%
Office
82%
Residential
The four Royal branded hotels continued to see occupancies stay at about 95% while the
two hotels opened in recent years, Crowne Plaza Hong Kong Kowloon East and Holiday Inn
Express Hong Kong Kowloon East, recorded further improvements in occupancies2. Our
deluxe hotels, including Four Seasons Hotel Hong Kong, The Ritz-Carlton, Hong Kong and
W Hong Kong, remained among the most sought-after hotels for high-spending tourists
and business travellers. Hotels in the pipeline in Hong Kong will include a waterfront hotel
in North Point which will be a part of the Groups integrated project featuring the Harbour
North shopping mall and high-end residences, as well as a premium hotel in Sha Tin which
will be the sister project of Royal Park Hotel.
37%
Kowloon
SUNeVision
With its data centre as the core business, SUNeVision performed well and recorded
satisfactory profit growth during the year. The upcoming high-tier data centre in Tseung
Kwan O will comprise over 470,000 square feet of gross floor area in two towers and is
estimated for completion in 2017. Together with the existing facilities, the new centre will
help us meet market demand for quality data centre services in terms of diversified locations
and reliable building facilities. SUNeVision will continue to maintain its position as a major
carrier-neutral data centre service provider in Hong Kong.
70%
New Territories
Only the four Royal branded hotels are covered in this sustainability report.
Our Business
Awards and Recognitions
Memberships and Charters
Organizer
Award
Business Environment Council (Founding Member since 2002)
The Asset
Platinum Award for Excellence in Management and

Corporate Governance
Employers Federation of Hong Kong (Corporate Member since 1994)
The Community Chest

of Hong Kong
Presidents Award and Second Top Donor

(Companies, Organizations and Individual Category)
Asia
Best CSR
Best Environmental Responsibility
Best Investor Relations
Best Investor Relations Professional
Euromoney
Best Mix Developer in Asia

Best Office / Business Developer in Asia
BCI Asia
Top Ten 2015 Developers Hong Kong
Readers Digest
Platinum Trusted Brand Award: Property Developer

Gold Trusted Brand Award: Property Management
Company (Hong Yip and Kai Shing)
Gold Trusted Brand Award: Shopping Mall (APM)
Platinum Trusted Brand Award: Car Park (Wilson Parking)
The Hong Kong Council

of Social Service
Caring Company designations (For 77 group companies

and developments including 14 10 Year Plus Caring
Company Logo)
Yahoo! Hong Kong
Yahoo! Emotive Brand Awards (SHKP & SmarTone

Telecommunications Holdings Limited)
Hong Kong Council of Social Service The Caring Company Scheme Patrons Club
(Jade Member since 2007)
Hong Kong Environment Bureau and Council for Sustainable Development
- Energy Saving Charter on Indoor Temperature (Signatory since 2012)
Hong Kong Environmental Protection Department Carbon Reduction Charter and
Carbon Audit Green Partner (Signatory since 2009)
Hong Kong General Chamber of Commerce (Member since 1977)
The Hong Kong Green Building Council (Patron Gold Member since 2011)
The Chamber of Hong Kong Listed Companies (Corporate Member since 2004)
The Real Estate Developers Association of Hong Kong (Corporate Member since 1974)
World Wide Fund For Nature (WWF) Hong Kong (Gold Member since 2010)

Our Building Homes with Heart philosophy forms an overarching principle of being a
responsible corporate citizen. We are committed to creating sustained value for stakeholders
by integrating environmental, social and governance considerations in doing business.
Driving Sustainability
Sustainability is an essential part of our mission, values, systems and processes, and
is treated holistically in our day-to-day operations and risk management. There are
comprehensive policies to drive and manage environmental, occupational health and
safety, and corporate social responsibility matters.
The Groups sustainability is under the purview of the Sustainability Steering Committee
composed of senior management representatives from key divisions, and led by an Executive
Director. An additional member representing telecommunications and IT infrastructure
businesses joined the committee. The committee monitors the Groups sustainability
performance in operations, reviews stakeholder feedback and updates relevant policies.
The steering committee is supported by committees and working groups from each business
unit, including an Energy Optimization Committee monitoring
energy consumption in
investment properties, an Occupational Health and Safety Committee that oversees
safety practices on construction sites and the Corporate Communications Department that
manages community outreach.
Internal Affairs Department is responsible for human resources management.
Corporate governance plays an instrumental role in our sustainability development.
We believe strongly in accountability and transparency. We uphold high standards of
corporate governance in all areas of our operations to build trust with our stakeholders.
Our Board of Directors is ultimately responsible for and is dedicated to ensuring effective
corporate governance across the Group. Our expectations of employees and suppliers are
governed through internal mechanisms such as the Code of Conduct. A whistle-blowing
mechanism provides an effective channel for employees to raise suspected misconduct,
malpractice or impropriety directly to the Chairman and Managing Director, the Audit
Committee, Head of Human Resources or Head of Internal Audit. Reported cases that
warrant investigations will be referred to the Audit Committee. General workplace grievances
are reported to direct supervisors and can be escalated to the Internal Affairs Department.1
External grievances are handled by the relevant employees, who interact directly with the
stakeholder.
The composition of our Board changed on 19 December 2014 involving the resignations
of Mr. Thomas Kwok as an Executive Director and as Chairman and Managing Director,
and Mr. Thomas Chan as an Executive Director of the Group. Normal daily business and
operations of the Group remain unaffected since the conclusion of the court case. No
charges or allegations have been made and no convictions have resulted against the Group.
Our corporate governance structures remain intact. Ongoing and open communications
have been maintained with regulators, investors and employees.
We remain truthful and transparent in our timely communication with our stakeholders, who
continue to have confidence in the Group. Our efforts in transparent communication and
robust corporate governance have been recognized through the investment community,
including being named Best Managed Company in the Real Estate / Property Sector in Asia
by Euromoney magazine.
For details on our corporate governance structure and practices, please refer to
the Corporate Governance section in our 2014/2015 annual report.
Stakeholder Engagement
Stakeholder group engaged
Method of engagement
We have a wide variety of stakeholders including employees, customers, business partners,

industry associations, government, NGO partners and the community at large. We engage
our stakeholders on an ongoing basis, both formally and informally, depending on the
purpose.
Customers
Annual engagement exercises on sustainability matters have been carried out since 2010,
and we are committed to reviewing material aspects annually. We invited both internal and
external stakeholders where applicable to review and update the list of 16 material aspects
of our operations this year. The review of material aspects was undertaken again in line
with the requirements of the GRI G4 Guidelines. We expanded the scope of engagement
this year to include the telecommunications and IT infrastructure businesses, SmarTone
and SUNeVision. With close to 200 stakeholders engaged, more than double the number
last year, stakeholder feedback was gathered from over 144 responses to an online survey,
10 telephone interviews and two focus group discussions.
Employees
(including residents, commercial

building tenants and hotel
corporate clients)
(from new hires to

senior management)
Government
Industry associations
We are regarded by our stakeholders as a leader in product and service quality and
maintain a well-regarded brand reputation among local communities. Our dedication to
and performance in environmental and social responsibility has also won accolades and are
recognized by our stakeholders.
NGO partners
Shareholders &
Investors
Suppliers
Other external
stakeholders
(including academia)
Online survey
Focus groups
Interviews
Meetings
Intranet
Retail stores, call centres,

customer hotline, online and
mobile phone applications
Website
SHKP Quality Academy

SHKP Quality Raising
Suggestion Scheme
Employee engagement
activities
Ongoing engagement
The engagement was again facilitated by a third party independent consultant to ensure
openness and impartiality.
Online survey
Customer satisfaction
survey
SHKP Club
Online survey
Interviews
Public consultations
Online survey
Interviews
Industry forums
Online survey
Focus groups
Interviews
Online survey
Investor meetings
and conference calls
Overseas road shows
Investor forums and
conferences
Online survey
Interviews
Online survey
Focus groups
Interviews
Corporate social responsibility

activities such as SHKP
Reading Club, SHKP Vertical
Run for Charity
Analyst briefing and annual
general meeting
Annual and interim reports
Investor Relations page on
Group website
Audits and assessments

Ongoing direct engagements
How We Address Stakeholders Key Concerns

Environmental issues
Data privacy
We continue improving on building management by extending energy efficiency projects

at our existing commercial premises and further expanding the number of buildings
monitored and reported for energy consumption and carbon emissions. Our online data
system captures environmental data on energy, greenhouse gases, waste, and water across
our property and non-property businesses.
Given the increasing trend of personal data loss / leakage incidents happening around the
world, our stakeholders suggest that we should take every measure to safeguard the data
security of our customers. We have a Group level Customer Data (Privacy) Policy for all our
operations.
While recognizing our presence in the market as a major property developer, some
stakeholders suggest we consider introducing new technologies to our products and
services. We support research and development on green building technologies that have
been piloted at the properties we develop. Our data centre services also enable customers
to choose sustainable options.
For details, please refer to the
Workplace practices
Some employees suggest that we should place more emphasis on training and development
and provide more support. We recognize the importance of raising the skills of our people
and we have a number of programmes in place to support training and development.
Encourage competition and strengthen anti-corruption practices

Over 30% of survey respondents considered that how we manage anti-competitive and
corruption issues is important to them.
As a major player in the local market, we strictly abide by the Competition Ordinance and
have been demonstrating integrity in our operations.
We will continue to maintain a robust and transparent corporate governance structure. We
remain transparent through timely disclosures to our stakeholders. For more details on our
whistle-blowing mechanisms to tackle corruption, please refer to Corporate Governance on
page 7.
We identified 16 aspects as both important to our stakeholders and significant to our own
operations in our last sustainability report, which were deemed to be material. Material aspects
are matters affecting strategy, risk, governance, reputation, and financial and non-financial
performance, and hence the ability to create value for stakeholders. Our stakeholders were
invited to review these material aspects as well as broader aspects listed below to propose
if there should be any updates based on external or internal factors including the change
in regulatory environment, market practice in sustainability reporting and our extended
reporting scope. The materiality of the aspects listed below was subsequently reviewed
and updated by a diverse group of stakeholders including employees, customers, business
partners, investors and NGO partners through an engagement exercise. Stakeholders were
invited to indicate whether there were any material aspects they thought should be added
or removed from the previous year. Priority was adjusted based on qualitative feedback from
focus groups and interviews, and ones suggested by the Sustainability Steering Committee.
A diverse group of employees was also engaged in the analysis, resulting in extensive
and wide-ranging feedback commensurate to the broader reporting scope of our
operations. While the majority of respondents considered our material aspects relevant and
comprehensive and did not wish to remove any existing ones, two new aspects market
presence and customer privacy which were identified and prioritized in 2014/15, were
reported in detail in the Value Created for People,and Value Created for Customers sections
respectively.
Stakeholders also feel that anti-corruption and anti-competitive behaviour are important
topics for SHKP to address. Although respondents did not rate these issues material enough
for reporting, we have addressed them separately in this report on page 9.
10
Materiality Matrix
High
Importance to stakeholders
Materiality Analysis
High priority
28
24
29
2
7
25
26
3
18
19
20
13
11
17
23
14
1
15
16
9
10
21
27
12
22
Low priority
Low
Significance to business
High
Sustainability Aspects Considered

Economic & General
Human Rights
1. Economic performance
2. Market presence
3. Indirect economic impacts
4. Procurement practices
5. Compliance
6. Grievance mechanisms
19. Human rights and non-discrimination

20. Freedom of association and
collective bargaining
21. Child labour and forced labour
22. Security practices
Environment
Society
7. Materials
8. Energy and GHG emissions
9. Water
10. Biodiversity
11. Waste
12. Sustainable buildings
13. Environmental impacts of transport
23. Community investment

24. Anti-corruption
25. Public policy and advocacy
26. Anti-competitive behavior
Workplace Practices
Product Responsibility
14. Employment practices

15. Employee engagement
16. Occupational health and safety
17. Employee development and
succession planning
18. Diversity and equal opportunities
27. Customer satisfaction and

responsibility
28. Customer privacy
29. Affordable housing in Hong Kong

Sustainability has long been an integral part of SHKPs corporate strategy to
drive growth, manage risks and create value. We put our Building Homes with
Heart credo into practice and work hard to generate returns for shareholders
and internal and external stakeholders including our employees, customers,
suppliers, contractors and the community. Our business objectives go
beyond financial return and are strategized to deliver long-term sustainable
value.
Securing and Developing Our Greatest Assets

Employees are our greatest assets because the value generated by people development
has increased tremendously as the business landscape becomes increasingly knowledge
driven.
We aspire to be an employer of choice by attracting, developing and retaining
talent. The Group has various programmes to find the right people to fit the right
positions. We held more than 6,100 training events and invested about HK$7 million to
upgrade the skills of our people in 2014/15. We recognize peoples contributions through
performance-centric rewards to motivate and retain them. The proportion of employees that
received performance reviews reached 89% this year.
Fuelling Growth with Supreme Customer Experience

We believe that success in creating good customer experiences stems from the impeccable
quality of our products and services and our ability to anticipate and address customer
needs. By consistently delivering customer satisfaction with our day-to-day service we build
loyalty and brand equity over time, which is our way to drive sustainable business growth and
generate return on capital.
Quality is one of our core values that we adhere to across our diverse business portfolio.
The value of premium quality is embodied in the properties we build and manage, in the
connectivity we create in telecommunications and the state-of-the-art digital infrastructure
solutions we provide. As evidence of the pride we take in our high standards of quality, the
Group continues to provide a three-year quality warranty on all new residential units sold.
Setting an industry benchmark since 2013, it was the first of its kind in the territory.
We collect ideas from our employees to provide innovative customer service and identify
unsated demand. We listen to feedback from our customers and proactively respond. We
maintained our high level of customer satisfaction in 2014/15: 70% to 95% of the customers
surveyed were satisfied with our property services and 95% with non-property services.
Health and safety is a key risk in property development and management, so we have
OHSAS 18001 accredited occupational health and safety management systems to manage
such risks. There were zero fatalities among our employees and our construction accident
incident rate of 7.32 per 1,000 workers1 was much lower than the industry average of 41.9
per 1,000 2.
1 Calculation
is referenced to the methodology adopted by the Hong Kong Construction

Association.
2 Industry rate is calculated based on calendar year. Reference was made to Occupational Safety
and Health Statistics Bulletin (August 2015) from the Labour Department of Hong Kong SAR
government.
11
Unlocking Value through Collaboration
Optimizing Asset Efficiency and Empowering Sustainable Choice
We are a big believer in collaboration and embrace the growing interrelation between
business partners, peers and the community within the business eco-system.
Being environmentally conscientious helps a company manage its impacts and reduce
operational costs to improve efficiency in utilizing resources. To a broader extent, by
developing greener products and services that enable customers to make more sustainable
choices, the Group moves away from the traditional cost-driven business model and
develops a set of common values with the wider community.
Working with over 1,000 suppliers and subcontractors, we collaborate with our business
partners to drive innovation and create win-win relationships. Over 95% of our total
procurement budget was spent on local suppliers as part of our sustainable sourcing strategy.
We exert a positive influence on our business partners and guide them in incorporating
sustainability in their operations, for example extending our safety expectations down the
supply chain. The accident incident rate for our contractors remained at a low 19.46 per
1,000 workers3 as compared to 41.9 per 1,000 for Hong Kongs industry average.4
We have a fair operating practices code of conduct and communicate it to all employees
and business partners, and expect them to uphold it in all our operations. We have a strong
stance against bribery and corruption extending from the Group down our supply chain.
We deliver value to the broader community with a three-pronged approach: promoting
reading and education, supporting sports for charity and healthy living and taking care of
the underprivileged. We invested HK$70 million and over 120,000 volunteer hours5 in our
community in 2014/15.
As a business that operates in various sectors, we acknowledge the environmental impacts

of our operations and have been working diligently to minimize them. We received 43
international certifications for our properties in recognition of sustainability in 2014/15.
Our Energy Optimization Committee (EOC) monitors the energy consumption of major
investment properties and helps guide energy and carbon footprint reductions. Some
buildings under our management went through refurbishment programmes of various
extents in 2014/15 to continually improve energy performance.
We encourage owners and residents of our managed properties to take part in the Hong
Kong SAR Water Supplies Departments Lets Save 10L Water campaign and take the
first step towards conserving water use in Hong Kong. We actively work to reduce waste
generation and encourage recycling to reducing our own impacts. We recycled over 8,000
tonnes of municipal solid waste and nearly 90% of construction waste generated from our
sites in 2014/15.
We also empower our customers with innovative products and services that enable them
to make more sustainable choices. Our IT infrastructure is constructed and operated in line
with the leading practices to provide customers with an optimum balance of performance
and energy efficiency.
3 Calculation is referenced to the methodology adopted by the Hong Kong Construction Association.
4 Industry
rate is calculated based on calendar year. Reference was made to Occupational Safety
government.
5 Volunteer hours are calculated based on calendar year.
12
Growing Financial Returns and Beyond

Financial performance traditionally plays a major role in investment decisions, but the
concept of responsible investment has become increasingly popular. The market is seeing
a growing number of investors that incorporate sustainability in their investment strategies.
The increase in enquiries on sustainability topics indicates the importance, power and
influence of good sustainability performance. We strongly believe that doing well in
sustainability helps achieve business objectives and will have a positive impact on our
financial performance over time.
As a market leader in both financial position and sustainability, we are a constituent of
the Hang Seng Index, Hang Seng Properties Index as the largest developer by market
capitalization and of the Hang Seng Corporate Sustainability Index Series since 2010.
We are one of the largest property developers and landlords in Hong Kong and continue to
maintain or expand our land bank to secure our development pipeline. We completed three
projects in 2014/15 to capitalize on local market demand and acquired six sites during the
year under review. These brought the total gross floor area of our Hong Kong development
land bank to 22.1 million square feet as of 30 June 2015. Overall occupancy at our investment
properties remained high at 95%.
SHKPs low net gearing ratio and high liquidity reflect the positive impacts of careful
management of our economic, social and environmental performance. Our cost of capital,
as indicated by net debt to shareholders funds, decreased to 11.2%.
We additionally attain the highest credit ratings among local developers, thanks to our
high liquidity and positive capital growth. Our effective corporate governance structure has
ensured our credit ratings remain unaffected with the changes to our board of directors
during the reporting period. We currently have an A1 rating with a Stable outlook from
Moodys and an A+ rating with Stable outlook from Standard & Poors.
Our prudent financial discipline has also won us the steadfast support of the banking
community, improving access to capital and achieving greater financial flexibility.
SHKP has always looked beyond the costs and benefits of a project. We are dedicated
to creating lasting value for our stakeholders and work diligently to do so. The following
sections describe how we interact with our employees, customers, supply chain, community
and the environment, and the positive outcomes of our work.
Sustainable management of assets in our core sectors helped drive impressive returns for
investors. We registered over HK$13 billion in net cash from operations as at 30 June 2015
and our contracted sales amounted to nearly HK$32 billion.
13

Our employees are important enablers of our business strategy, holding the
key to delivering the quality we have pledged. We aspire to be an employer
of choice, and place high importance on human capital management to
attract, develop and retain our people. Working at the Group offers good
career prospects, opportunities for growth, and competitive remuneration
incentives. Together, we create excellent products and offer high quality
customer service that helps build a better home and contribute to the larger
community.
Attracting and Sourcing Talents

Our businesses, such as construction, property management, hotels, telecommunications
and IT infrastructure are people-oriented and we continue to face intense competition in the
employment market. The shortage of skilled talent, especially at the junior level, continues
to represent a key challenge to our business. We adopt a strategic and systematic approach
in attracting talent and we are keenly aware of the significance of a strong corporate brand
to keep us ahead of the talent competition. In 2014/15, we managed to attract 9,409
employees to join our Group. New joiners will participate in a comprehensive orientation
programme, which is designed to help new employees fit in our corporate culture and
successfully integrate into their new work environment.
Graduates are crucial to grow our talent pipeline and to meet our future core capabilities in
the highly competitive labour market of Hong Kong. We partner with major local universities
for collaboration / graduate internship programmes. In addition, we select and cultivate
suitable talents through our three-year Management Trainee (MT) Programme, which
comprises core training, rotation among departments and mentorship by senior staff.
Trainees gain a comprehensive understanding of the business as a whole, exposure to
different functions within the Group, industry knowledge and networks necessary to embark
on a rewarding career with us.
We also target graduates from higher diplomas and associate degrees. Collaborating with the
Hong Kong Federation of Youth Groups, we launched the SHKP SDU-Trainee Programme1
to provide learning opportunities and on-the-job training to sub-degree graduates.
A one-year internship is provided to participants in sectors including construction, property
management, information technology, and hotels. As in the spirit of Building Homes with
Heart, we aspire to help our young people to take their first step in the working world and
help build a pool of talented youth in Hong Kong.
Visit SHKP Careers:

www.shkp.com/en-US/Pages/job-vacancies
14
The SHKP SDU Trainee Programme is a collaborative project between SHKP and the Hong
Kong Federation of Youth Groups, supported by the Hong Kong SAR Labour Departments
Youth Employment and Training Programme. It is the first of its kind initiated by the Hong Kong
business sector. The word SDU in the title stands for sub-degree youth, with sub-degree
referring to higher diplomas and associate degrees.
CASE STUDY
Management Trainee Programme

Natalie Kwok, our Senior Leasing Manager, started her career with SHKP as a graduate MT
over a decade ago. Her road to success exemplifies the Groups relentless commitment and
efforts in recruiting, developing and retaining talent.
The MT programme helped me gain a better understanding of the

Group
s long-standing belief, Building Homes with Heart, the core
values of Speed, Quality and Efficiency, and how the Group has
turned its words into actions.
Natalie Kwok
Senior Leasing Manager
Aspiring to work for a reputable and socially responsible company, Natalie believes that
SHKP matches her career goal even though she has limited knowledge about the property
business as a fresh graduate. The MT Programme provided Natalie with meaningful
work experiences and opportunities for personal growth. The trainings effectively helped
her build professional skills and technical knowledge in property leasing. Working at a
multi-faceted business such as SHKP also provided her with the chance to collaborate with
different departments, work with a diverse group of highly skilled colleagues and foster a
supportive professional network. Natalie found her experiences as an SHKP MT instrumental
to helping her successfully lead challenging, large-scale projects, such as the marketing
campaign for the International Commerce Centre. In fact, every project has its uniqueness
that enables Natalie to challenge herself every day and excel. This helps prepare her to
become a well-rounded manager.
Developing Talent
Becoming an employer of choice requires huge investments in human capital. One of our
focuses is offering development opportunities, at both professional and personal levels,
to motivate and upskill our existing talent to align with our dynamic business needs. Talent
development has become an increasingly important priority to mitigate labour shortage
from a business planning perspective.
Each year, our Internal Affairs Department develops a structured development plan for
employees from frontline staff all the way to senior management. Our training programmes
are regularly updated to ensure that our employees skills keep up with our ever-changing
business needs. We also actively seek feedback from our people to improve the content and
delivery of our training programmes. In addition to organizing internal classroom training,
we sponsor external training in work-related courses, ranging from short seminars to Masters
degree programmes. A training library and e-learning programmes are also available to all
staff on the intranet with easy access to facilitate self-learning.
We regard skill diversification as an important aspect in developing our human capital. The
SHKP Quality Academy, a group-wide learning platform launched in 2013 as part of the
Quality Campaign, continues to bring multi-disciplinary knowledge to our employees. It
offers a range of cross-business-unit courses such as architecture and design, construction,
engineering, customer service, and management to the participants. Similarly, job rotation
and secondment opportunities to the mainland or Singapore would broaden the horizons
of our talent.
Every year, the Group solicits suggestions from existing MTs to address the question What
can we do to attract the best and the brightest graduates? Because of this, the Groups MT
programme has been continually improving its appeal to prospective talent and helping
potential applicants grapple with information to align what they are interested in with what
we are looking for.
See Natalie Kwoks interview video:
www.shkp.com/Pages/management-trainee-hk-experience-sharing
15
Hong Yip People Development Academy
Recognizing Performance and Engaging Employees
Authorized by the Hong Kong Council for Accreditation of Academic and Vocational
Qualifications, Hong Yip is the first company among its peers to organize property
management industry-related training programmes, which are ranged from Level 1 to 3
of the Qualification Framework (QF) scheme in Hong Kong. Since June 2010, Hong Yip
holds the largest number, as a total of 9, of accredited in-house training programmes in the
industry. In particular, our in-house training programme Certificate in Service Excellence is
based on Specification of Competency Standard. We are proud to provide the first of its kind
in property management industry as well as the others implementing QF scheme.
Our remuneration supports the performance-driven culture and is competitive in the

market. Our salary increment, especially for junior employees, is above average for the
last five years. Employees are compensated based on meeting their business and personal
development goals. We have various recognition awards in place, such as the Quality Raising
Suggestion Scheme, Work Safety Suggestion Scheme, Best Handover Quality, and Property
Management Fire Safety Performance presented by the Deputy Managing Directors every
year. In addition, employees are entitled to benefits such as, but not limited to, paid leave,
financial support with mortgages and personal loans, scholarship and overseas exchange
opportunities for their children.
- The objective of the Academy is to develop our

people and equip them with comprehensive
skills and knowledge to deliver quality service
to our customers.
We have in place a structured employee appraisal and performance management system

which encourages two-way communication between supervisors and employees on how
to maximize their individual performance. In 2014/15, 89% of our employees received a
performance review.
- Launched in 2007, the Academy has nurtured

111,086 participants, ranging from entry level
to managerial level.
Today, the younger generation is looking beyond financial compensation. We continue to

engage with our employees to better understand and address their needs and concerns.
Also, engaging our people with shared values of doing good to the community forms part
of our talent management strategy. Taking the signature SmarTone Mini Challenge as an
example, it aims to enable employees to enhance their work-life balance and community
involvement. Featuring a theme of Diversity in Development: a Battle of Wits and Power, this
reporting years Mini Challenge took place in October 2014 and had 47 teams from Hong
Kong, Guangzhou and Macau. More than 400 employees participated each year since its
launch in 2007 with a total of HK$2.3 million raised for youth services in Hong Kong.
For SmarTone, we launched a series of development activities as part of the I care. We

care.campaign to unleash our employees creativity, encourage collaboration and enhance
their sense of achievement and belonging at work. The activities, comprised of workshops
and sharing sessions, were designed to equip employees with necessary knowledge and
skills to improve work efficiency and deliver an excellent customer experience. Over 1,000
employees across all functions have participated.
16
Safety and Well-being at Work
Promoting and Enabling Diversity and Inclusion
We care about our peoples physical and mental well-being. With construction as one of our
core businesses, we recognize the inherent risks in our operations and make safety the top
priority.
We treat diversity and inclusion as a value driver and aim to create a vibrant and inclusive
workforce. With the expansion and diversification of our businesses, we recognize the
competitiveness and tangible value brought by diversity. Our code of conduct and
anti-discrimination practices guide our employees and business partners in the areas of
ethical business conduct and equal opportunity.
Work-related health and safety performance is overseen by the Occupational Health and
Safety Committee in the Group. Our Occupational Health and Safety Policy conforms with
relevant regulatory requirements and is designed to meet the multitude of needs at the
Groups property business.
Workforce Distribution by Gender and Age
As a preventive measure, we take responsibility by providing training on safe working

practices and emergency response preparedness and procedures. The safety management
systems of both our construction and property management businesses are accredited to
the leading international standard of OHSAS 18001.
Total number of workforce (as at 30 June 2015): 26,428

41.0%
Female
Our accident incident rate continues to remain low at 7.32 per 1,000 workers2 in this reporting
year, which is significantly lower than the Hong Kongs industry average of 41.9 per 1,000
workers 3.
For mental health, we provide our employees and their families with a 24-hour counselling
and emotional support hotline, Hearty Hotline, with access to professional social workers,
psychologists and counsellors. Additionally, we form a Staff Care Team to organize regular
social events for employees and their family members to promote well-being and work-life
balance.
48.1%
Age over 50
59.0%
Male
51.9%
Age under 50
We acknowledge the importance of gender equality through our Group-wide human

resources policy. We strive to offer career progression opportunities to women in
management positions and provide mother-friendly workplace. In 2014/15, we implemented
a programme to provide working mothers with flexible working hours. We currently employ
94 people with physical and mental disabilities.
2 Calculation
For more details on our health and safety performance,

please refer to the Data Tables.

Association.
Industry rate is calculated based on calendar year. Reference was made to Occupational Safety
government.
17
Managing Human Rights

Respecting human rights has been an integral part of our approach to sustainability. We
actively manage work-related human rights issues wherever we operate, and extend such
expectations to our supply chain. For instance, we take rigorous measures to prevent the
use of child and forced labour in our business operations. Also, we respect employees rights
to join trade unions and bargain collectively. Our Code of Conduct establishes mutually
respective and collaborative work relationship, equal opportunities and freedom from all
kinds of discriminations, such as gender, age, family status, sexual orientation, disability, race
or religion or other characteristics.
Our commitments to human rights also extend to our supply chain. Please refer to Value
Created for Supply Chain section for details.
18

We apply our core value of Building Homes with Heart in all aspects of
business. Our mission is to create impeccable customer experiences so
we focus on quality, anticipate customer needs, look for ways to innovate
homes and transform lifestyles. We serve customers in various ways, such
as offering premium buildings, comfortable homes away from home and
reliable telecommunications and technology service.
Providing Premium Products and Services

Upholding high standards of quality is one of our core values. Our professional
property development teams implement stringent quality controls and assurance procedures
at all stages of building a home, vertically integrated from design to after sale:
DESIGN
- Anticipate end-user needs in building design

- Address customer feedback
CONSTRUCTION
We put our long-standing quality culture into practice from policy to operation.
Our commitment to high quality is SHKPs competitive advantage, resulting in a leading
market position.
The SHKP Quality Academy is part of our talent development efforts to reinforce our
quality-oriented company culture to employees across the Group.
We understand that buying a home is one of the biggest decisions people make in their
lives, so we have been offering a three-year guarantee on all new residential units to
homebuyers since 2013. We take pride that SHKP is the first developer in Hong Kong to
have made this commitment in the market.
In addition to building quality, enabling an equal and inclusive customer environment is
also important to us. Many of our commercial and residential premises are designed in line
with the Hong Kong Governments Barrier Free Access Design Manual and are regularly
evaluated.
- Select quality materials based on rigorous quality control systems

- Prohibit the use of sub-standard materials
PRE-SALE
- Inspect completed projects against our quality standards by a

team of trained specialists
- Quality audits by our property monitoring team to ensure zero
defects
HANDOVER
- At least three checks performed by our inter-departmental

property handover team six months prior to handover, against
over 70 indicators
- Provide clear and accurate information to homebuyers
AFTER-SALE
- Offer a three-year guarantee to buyers of new residential units

and solicit their feedback
- Monitor and maintain the health and safety in all buildings under
our management by qualified safety officers
- Provide premium management by two property and facility
management subsidiaries with numerous awards between them
19
CASE STUDY
Creating an excellent customer experience through innovation

Our flagship YOHO integrated complex project in Yuen Long is intended to bring a whole
new lifestyle to the northwest New Territories. This complex brings residential and retail
space together to transform the lifestyle in the area, which is increasingly populated by
young families.1
The project was designed with end users in mind, anticipating the needs of urban
sophisticates and offering a lifestyle with a luxurious 24-hour clubhouse featuring
entertainment facilities and snacks for residents to enjoy around the clock. The mall provides
integrated digital navigation and ticketing information on parking, public transport and
restaurant reservations, and 120,000 square feet of outdoor green space delivers a carefree,
modern and natural environment to our customers.
While the YOHO project was an addition to our property portfolio, creating new customer
experiences and innovative lifestyles have always been cornerstones of our commitment
to customers. SHKP has developed a number of iconic integrated complexes that have
transformed many local neighbourhoods in the past three decades, such as New Town Plaza
in Sha Tin, and the Millennium City cluster in Kwun Tong.
120,000 sq. ft.

of outdoor green space
Visit our YOHO Mall:

www.yohomall.hk
1 The
Hong Kong SAR Planning Departments Projections of Population Distribution 2014-2023

announced in December 2014 predicts that Yuen Long will have the highest proportion of young
and working age residents in Hong Kong with consumers between 20 and 44 accounting for 38%
of the population in the district.
20
Our commitments to quality go beyond bricks and mortar and underlie all aspects of our business.
Property Management
Hotel
How we deliver quality
Physical safety and security: Our property management services range from security and
mechanical and electrical repairs, to burglar alarm systems and project management to
ensure safe, secure environments for residents and tenants.
Information security: Our information security management system is leading the
local property and facility management industry. Hong Yip was the first large property
management company to achieve ISO 27001 certification in Hong Kong.
Service quality: Our quality management systems are accredited to ISO 9001 standards and
are in line with international best practice.
Health and Safety: Our occupational health and safety management are certified to OHSAS
18001 standards, which exceeds regulatory requirements.
Business resilience: We piloted the ISO 22301 accredited Societal Security - Business
Continuity Management Systems standard at International Commerce Centre managed
by Kai Shing. The goal is to enhance business resilience by managing risks of business
disruptions and minimize the extent and severity of potential impacts.
Technology: We developed a real-time information distribution application for smart phones
to keep residents of managed properties abreast of any updates relating to the properties.
This was piloted by Kai Shing.
Food safety: A Hazard Analysis Critical Control Point system to control food-borne diseases
has been implemented at the Royal Park Hotel, Royal Plaza Hotel and The Royal Garden. The
food safety management system at the Royal Garden is accredited to ISO 22000 Food Safety
Management standard. Monthly spot checks are performed by an independent external
party to ensure food hygiene and safety. Yearly audit is performed by an independent
external party, whereas weekly checking by external consultant and daily spot checks are
performed by internal hygiene department.
What we achieve
Our hotels won TripAdvisor Hall of Fame awards given to top hotels that have earned
Certificates of Excellence for five consecutive years.
We also garnered a number of awards for service excellence from online agencies such as
Hotels.com, Booking.com and Agoda.com. A number of our restaurants are recommended
in the Michelin Guide to Hong Kong & Macau.
What we achieve

Fourteen properties managed by Kai Shing received 2014 Excellent Facility

Management awards.
International Commerce Centre managed by Kai Shing received a Productivity and

Quality award in the 2014 Hong Kong Awards for Industries.
Hong Yip was the first property management company in the territory to be granted
Q-Mark certification in 2004 and has achieved Green Mark certification for eight
consecutive years.
Hong Yip received a Best Property Management Contractor (HOS and Non-domestic
Properties) gold award from the Hong Kong Housing Authority for a record of five
consecutive years.
Hong Yip received a 2014/15 Best Property Safety Management award.
21
Telecommunications
IT Infrastructure
Service reliability: Our network reliability consistently exceeds our target of 99.99%.
The mean time to recover a fault in the core network is 100% within 10 minutes, exceeding
our target (95% within 10 minutes)2.
Service quality: We offer reliable, flexible and easily scalable IT/data centre solutions.
Our data centres are accredited to ISO 9001 Quality Management System standard and
ISO 20000 IT Service Management standard, and the new Tseung Kwun O data centre is
designed to a high international standard (Uptime Tier 3+ Standard to Tier 4).
Customer service: Our average time to answer 90% of the customer calls to our hotline is less
than six seconds, consistently lower than our target (90% within 13 seconds). Our complaint
acknowledgement time (within one working day) and resolution time (>90% within three
working days) meet or exceed our targets.
Data privacy: We strictly abide by our Privacy Policy to protect our customers personal
information from being misused.
What we achieve
We attained following awards:

2014 and 2015 Next Magazine Top Service awards Mobile Network Service
Operators Category
2015 Next Magazine Top Service award Internet Service Providers Category
Yahoo! Emotive Brand award 2013-2014 Telecommunications Category
2015 Asias Best Managed Companies by FinanceAsia

- Ranked No. 2 Best CEO in Hong Kong
- Ranked No. 3 Best Corporate Governance in Hong Kong
- Ranked No. 4 Best Investor Relations and Best Managed Public Company in
Hong Kong
2 The
availability of the core network, i.e. the percentage of the uptime of the core network in an
observation period.
22
Information security: Our data centre service (iAdvantage) is certified to ISO 27001
Information Security Management standard to safeguard sensitive and private information.
What we achieve
We won the Computerworld Hong Kongs 2015 Technology Company of the Year Award
(Mature Category). This distinguished achievement acknowledges SUNeVisions excellence in
service quality to local and overseas customers, which has been integral to the advancement
of the local IT industry.
Our data centres were also the Best Internet Service Provider in the Outstanding Information
Technology & Financial Enterprise Awards organized by Capital Magazine, Capital Web Site
and Hang Fung Gold Technology Group.
Anticipating Customer Needs
Customer Feedback and Satisfaction
Customer experience hinges on quality and responsiveness to market needs. The SHKP
Quality Academy is a platform to foster our customer first culture and help our employees
better anticipate customer needs, in order to constantly enhance customer experience.
Please refer to Value Created for People in this report for more information about the SHKP
Quality Academy.
The SHKP team proactively seeks feedback from customers across our business sectors.
We always look for room to improve our products and services.
Our Initiatives reinforce the Groups focus on innovation and continuous improvement of
customer experience. These schemes solicit ideas from our employees to improve quality,
efficiency, and safety, with annual prizes awarded for best suggestions.
Quality Raising Suggestion Scheme

For its 22 years, we proactively outreach our employees for innovative ideas. The scheme
response rate has been good with over half of the winning ideas implemented by our
businesses. The ideas help save homeowners time, reduce costs for commercial tenants
and protect the health and well-being of shopping mall visitors. This reporting year
our gold award winner, Estate Management, devised an inexpensive and user-friendly
ventilation system that clears volatile organic compounds and dust during renovation.
Work Safety Suggestion Scheme

For its seven years, many winning ideas are adopted by the local industry, which help to
boost both safety and quality of workplace. Another gold award winner this reporting
year, Construction Department, studied and came up with a warning system to lower
the risk of tipping over in crane lorry lifting operations. The results of study were shared
to relevant parties, in an attempt to enhance the safety of operating lifting equipment.
Customer Care Ambassador Election to encourage continuous service improvement at our
shopping malls is a signature programme involving public voting and assessments from
mall supervisors and mystery shoppers. The seventh election was held in 2014/15 and 107
employees from 21 SHKP malls were selected in recognition of their excellent performance.
Our telecommunications operation continues to innovate and diversify to meet changing
market demand and help address concerns raised by our customers. Our telecommunications
subsidary launched a number of leading new services in 2014/15 in the mobile service space.
What our customers thought about our service in 2014/15

Homebuyers
Office tenants
Surveys of five new residential

properties were carried out in
2014/15, covering over 1,000
homebuyers and over 2,400
residents.
Periodic tenant visits and surveys

were carried out and over 500
office tenants were interviewed.
Over 70% of homebuyers

surveyed considered our overall
property quality and handover
service as Good or Excellent.
Over 95% of tenants surveyed

rated our property management
quality as Good or Excellent.
Shopping mall tenants
Hotel guests
Feedback from over 3,600 mall

tenants was collected.
More than 20,000 guests were

surveyed.
Over 95% surveyed rated our

property management as Good
or Excellent.
On average they gave a score of

86 out of possible 100 for hotel
facilities and services.
Telecommunications customers
IT infrastructure customers
Customer satisfaction surveys

are built in the sales process at
retail shops and the call handling
process at call centres.
Feedback from over 260,000
customers was collected.
A total of 10 corporate clients

were surveyed.
Over 95% of the respondents
were satisfied with our service
quality.
Over 98% of those surveyed rated

our service quality as Good.
23
Comments and suggestions from our customers are followed up by responsible teams from
respective divisions in a timely manner. There is also a formal customer complaint handling
mechanism. Complaints received through direct and indirect channels, such as our 24-hour
hotlines or external parties, are acknowledged in a timely manner and recorded for proper
follow-up. Immediate responses are expected in some of our businesses, such as hotels and
telecommunications, and the complaints are handled promptly.
SHKP Club
Established in 1996, our SHKP Club is the first and largest property membership club in Hong
Kong, providing two-way communication to over 348,000 members to facilitate customer
feedback and improve satisfaction. The Club has been an effective vehicle for the Group to
enhance our product and service quality, and interact with our customers through online and
offline platforms. It helps disseminate the Groups related information and services to a wider
public. It also promotes loving homes and social harmony, while the annual Loving Home
Performance of Hotels
All Complaints3:
from the Heart campaign aimed at promoting domestic harmony in lively ways, including:
Response within 10 working days
Performance of Property Management
Lovey-loving Family comic series featured 10 episodes;
Emergency Complaints:
Immediate response
Verbal Complaints:
Verbal response within 10 minutes
Written Complaints:
Written response within 10 working days
10 ways to becoming a Sweet Heart in the family programme received 50,000 Likes
from Facebook fans;
Sweet Family Times Competition for stories attracted more than 6,000 entries;
Loving Home notebook charity sales received over HK$100,000 donation; and
Performance of Telecommunications
Hotline Answer Time4:
The average time for

90% calls is less than six seconds
Complaint Acknowledgement Time5:
Within one working day
Complaint Resolution Time6:
>90% within three working days7
3 Hotels have a more stringent protocol that requires all complaints to be immediately reported to
the Guest Services Manager.

4 The mean time to answer a call by an operator, counting from the time a customer requests for
discussion with an operator.
5 The mean time to acknowledge a complaint, counting from the time a customer lodged the
complaint.
6 The mean time to resolve the complaint, counting from the time a customer lodged the
complaint.
7 Excluding cases that (1) are waiting for information/decision from the customer, (2) customers
cannot be reached or (3) on-site test is required.
24
Roving exhibition at SHKP malls attracted more than 1,000,000 visits;
Results of family survey shared to the public with the support from Hong Kong Family
Welfare Society.
Visit our SHKP Club: www.shkpclub.com
Protecting Customer Privacy and Well-being

We treat customer data privacy seriously and are committed to abiding by the requirements
of the Personal Data (Privacy) Ordinance of Hong Kong with a group-level Customer Data
(Privacy) Policy in all our operations.
We did not receive any substantiated complaints regarding breaches of customer privacy
and losses of customer data from any outside parties or regulators in 2014/15.
We strictly comply with the requirements of the Office of the Communications Authority in
telecommunications radio frequency management to safeguard the health and well-being
of our customers and the public. Our telecommunication infrastructure operates well within
safety standards.

Our supply chain network involves over 1,000 suppliers and subcontractors,
and how we work with them has a significant impact on the quality of our
products and services, and our reputation. We are committed to building
collaborative, long-term and mutually beneficial relationships with our
business partners.
Managing Our Supply Chain Risks

As part of our supply chain risk management, we avoid excessive reliance on a small number
of suppliers. Less than 30% of our purchases in 2014/15 were sourced from our five largest
suppliers. The rest of our purchases is from a large number of different suppliers. For
example, our Construction Department spent 83% of its overall purchases to hire more than
110 subcontractors, whereas our property management subsidiaries sourced more than 56%
from 600 facilities contractors.
We manage each business line supply chain differently. For example, physical safety is
the top priority of our construction business, whereas food safety is crucial to the catering
arm of our hotel business. We summarized our most significant categories of suppliers by
expenditure in the reporting period to illustrate the diversity of our suppliers across our
supply chain.
Proportion of our
procurement budget
spent on local suppliers
>95%
CASE STUDY
Creating value through collaboration

with our business partners
Both SHKP and Johnson Controls look to increase the
operational efficiency of the Group
s buildings while reducing
energy consumption. Our shared goals and objectives form
the foundation of our lasting win-win working relationship.
K. O. Wong
General Manager of Service Division,
Building Efficiency, Johnson Controls
Johnson Controls, our supplier, is a technology company that specializes in providing
energy saving solutions for buildings. Sun Hung Kai Centre is a 34-year-old commercial
complex with 53 floors. Over the years, we have implemented various initiatives to
retrofit SHKC to improve its energy efficiency.
Through working closely with Johnson Controls, we upgraded the water pump system
in 2013 which contributed to an estimated annual energy savings of over 120 MWh
or HK$0.18 million in energy bills. In 2015, Johnson Controls leveraged innovative
technologies to optimize the chiller plant at SHKC. The new solution is expected to
achieve annual energy and cost savings of 10% from the baseline level of 2014 and
reduce the carbon footprint by 300 tonnes. This translates to annual savings of close to
HK$800,000 with an anticipated return on investment of only two years.
We recognize the positive impacts we can make in the market through experience
sharing and collaboration with other members of the business community. We joined
Johnson Controls Customer Reference Programme and showcased our energy saving
experience at SHKC to other property developers, with an aim that our peers and
suppliers can repeat our successes.
25
Sourcing Sustainably
Procurement Breakdown by Operation and Type

20%
54%
Office supplies
Food &
beverages
(Stationery, toner,
cartridges, copy
machine rental,
metre charges
and papers,
etc.)
22%
Utilities
30%
IT / Telecoms
Head Office
17%
Other
14%
Utilities
(Computer
hardware,
software,
maintenance,
telephone,
etc.)
28%
Facilities
(Electricity,
water, etc.)
Hotel
8%
Facilities
7%
General supplies
(Maintenance, renovation works,

security, cleaning, catering, etc.)
(Non-food & beverage items,

transportation service, operating
equipment, maintenance materials)
<1%
17%
Suppliers
(Building
materials,
equipment,
etc.)
2%
Utilities
Other
6%
(Electricity,
water, etc.)
Facilities
(design,
construction,
maintenance,
security,
cleaning, etc.)
Telecommunications
Construction
83%
Subcontractors
92%
IT/Telecoms
(Fabrication, installation
works, construction workers, etc.)
(Maintenance,
renovation works,
security, cleaning,
etc.)
(Computer hardware,
software, maintenance,
telephone headsets, etc.)
13%
Consultants
(Building surveying)
7%
Others
1%
Property
Management
56%
23%
Utilities
(Electricity,
water,
etc.)
(Electricity,
water, etc.)
Facilities
(Maintenance, renovation
works, security, cleaning, etc.)
26
IT
Utilities
Suppliers
(Uniform,
maintenance
materials, etc.)
1%
18%
IT
Infrastructure
(computer
hardware, software,
maintenance, etc.)
81%
Facilities
(design,
construction,
maintenance, security,
cleaning, etc.)
We promote supply chain sustainability by choosing local suppliers, where possible,

to minimize our carbon footprint and support the local economy. We also support local
entrepreneurship by involving small, medium or social enterprises in our supply chain. Over
95% of our purchases were sourced locally out of the total of HK$32.8 billion for the
reporting period.
In line with the requirements of ISO 14001 Environmental Management System, our
procurement policies give priority to eco-friendly contractors and suppliers. Our supplier
contracts include commitments to observing our environmental standards, which cover the
areas of waste management, pollution prevention, materials sourcing and materials use.
Managing Sustainable Supply Chain

We strive to make a positive impact on our supply chain by setting a set of expectations on
environmental, social and ethical standards. Guidance is provided in invitations to tender
and supplier contracts. Training courses are provided to suppliers to help them gain a better
understanding of our quality standards and core values.
We are committed to operating in accordance with local laws and regulations. Similarly, we
expect our suppliers to operate with integrity, treat their people fairly and adhere to a code
of conduct, with reference to our Environmental, Occupational Health and Safety policies, as
well as strict standards on corporate governance.
Supplier compliance is evaluated and monitored on a regular basis. For example, our
construction and property management businesses assess contractors and suppliers
biannually on their sustainability performance. We identify opportunities for best practice
sharing and encourage honest and accurate disclosure. Performance is logged in our tender
management system and is taken into consideration in future supplier selection processes.
Any violation of the law or serious misconducts can result in exclusion from invitation to
future tendering opportunities.
Similarly, for food sourcing at hotels, we carry out strict supplier audits annually at all points
along the supply chain. We particularly focus on high risk food items such as oysters and
other ready-to-eat food. The audit covers personal hygiene, food processing and storage
temperature, pest control management, equipment cleaning, waste management and
chemical storage management. During 2014/15, over 95% of our suppliers achieved
satisfactory results during our assessments; those who failed were immediately suspended
from our list of approved suppliers.
Anti-corruption
In managing procurement fraud risks, we require tendering companies and their board
members to declare any conflicts of interest, and encourage reporting of any suspected
misconduct through a whistle-blowing mechanism. In the event of contravention by any
subcontractors or suppliers, we will take appropriate disciplinary actions or report to the
regulators. We do not knowingly work with any suppliers or business partners that fail to
comply. Our anti-corruption policy can be found on our online vendor platform.
Compliance is evaluated by competent site safety personnel on a quarterly basis, whereas

external safety audits under the Factories and Industrial Undertakings (Safety Management)
Regulation are conducted every six months.
Upholding Human and Labour Rights in Supply Chain

We uphold human and labour rights across our supply chains. We have zero tolerance for
child labour and forced labour, and expect our suppliers to do the same. We are the first
developer in the industry to establish a Construction Wage Protection Partnership Scheme
to make sure our construction workers are paid in a timely and fair manner and are properly
covered by the Mandatory Provident Fund (MPF) retirement scheme.
Managing Health and Safety Performance

In construction and property management businesses, our standards in managing health
and safety risks extend to our contracted workers. We expect our contractors strictly follow
our safety protocols when working on site. Training has been a key driver in preventing
potential hazards at construction sites. All construction workers are required to attend at
least one worksite safety course before they may start working for us. Over 544,000 workers
undertook the training in 2014/15.
In order to encourage a transparent and comprehensive reporting of safety incidents,

we took the initiative last year to waive industry standard fees levied on claims filed by our
contractors at each of our development projects.
We maintained a zero fatality record in construction sites where we are the main contractor
this year. However, we regrettably report one fatality and two injuries at our subcontractor
managed Stubbs Road construction site in Hong Kong on 8 December, 2014. Following the
incident, all of our construction sites were suspended immediately for a series of internal
safety reviews performed by our construction team. In addition, we have established an
independent accident investigation panel to look into this incident. We took all necessary
actions to identify the root cause of the incident and undertake necessary measures to
prevent similar event in the future.
Prior to construction project commencement:

Induction trainings specific to the conditions of individual sites
During the project:
Tool Box Talks are frequently held at construction sites to
enhance alertness of workers
Site-specific training is organized when technical and
complicated work procedures are to be executed
1 Calculation

Association.
2 Industry rate is calculated based on calendar year. Reference was made to Occupational Safety
government.
27

Hong Kong is the Groups home and our continuing success is inextricably
connected to the citys enduring prosperity and development. We put our
Building Homes with Heart philosophy into action to make Hong Kong a
better place for everyone, with initiatives and resources that go beyond
philanthropy in addressing community needs.
Our Approach to Community Investment
To have greater positive impacts, we plan to take further steps in measuring and evaluating the
progress of our community investments, in order to maximize value created for the community.
Responsible citizen
We invested in the community through charitable donations amounting to HK$70 million
this reporting year, provision of various in-kind sponsorships, and organizing over 120,000
hours employee volunteer work. Since 2012, we have raised over HK$17 million through
SHKP Vertical Run for Charity Race to Hong Kong ICC. All those are in addition to paying
HK$4,771 million in tax.
We have had a three-pronged approach in promoting reading and education, supporting

sports for charity and healthy living, and taking care for the underprivileged in the community
for years:
28
Reading and Education
Sports for Charity and Healthy Living
Care for the Underprivileged
Purpose
Promote reading culture
Encourage healthy lifestyles and sports for

charity
Support the needy
Commitments
for 2014/15
Promote reading to a wider community

Introduce green elements to reading
Promote another major sporting event for

the community
Raise funds for children and youth in need
Expand the programme to a wider group of beneficiaries
Progress in
2014/15
SHKP Reading Club: 25,000 members in Hong

Kong and on the mainland, and introduced five
new series of initiatives
Recycle Your Read: over 26,000 books recycled in
five months
Promoted Exercise for Good by introducing

a new territory-wide cycling event in 2015/16:
SHKP Hong Kong Cyclothon
SHKP Vertical Run for Charity extended to
Shanghai IFC
Building Homes with Heart Caring Initiative:

over 10,000 beneficiaries
Social Inclusiveness: over 600 beneficiaries1
since commencement
Goals for
2015/16
Driving happy reading among youths in

Hong Kong
Achieve better results for Hong Kong Cyclothon

Promote vertical running to youth and the elderly
Track effectiveness and impacts of donations
Engage wider target group
Figure as at January 2015
Towards a Learning Society

Developing a happy reading culture SHKP Reading Club
Reading is the keystone of a learning society. The benefits go beyond preparing young
people to join a knowledge-based economy and improve Hong Kongs international
competitiveness. Importantly, reading also stimulates ideas that increases empathy and
fosters shared values, all vital to the spiritual health and strength of the community.
The SHKP Reading Club is committed to making reading part of peoples daily lives. It has
staged a wide range of reading-related activities like guided cultural tours and seminars
with popular authors that attracted nearly 15,000 participants in 2014/15. The results of the
annual SHKP Reading Index survey indicated that the popularity of reading in Hong Kong
is increasing. We set targets to promote reading to new communities and infuse green
elements to reading in 2014/15. We have launched the following community campaigns,
which are tailored to specific community segments of society.
Visit SHKP Reading Club: www.shkpreadingclub.com
2014/15 campaigns
Target participants
Purpose
Results
Read and Share
Primary students
Provide support to primary schools and

enable teachers to promote a reading
culture in schools with innovative methods
Engaged 25 schools in partnership with the Hong Kong Aided Primary School
Heads Association
Explore the World
Local, Asian, European

and American teens
Encourage cultural exchanges
Connected 170 teens, including visiting students from France, Canada and Italy
Lets Read, Elderly
Senior citizens
Encourage reading online with a

senior-friendly platform
Partnered with Hong Kong Society for the Aged

Over 3,500 page views of online magazines
Read through Hong Kong
Underprivileged families
Offer guided cultural tours and introduce

related readers to understand Hong Kong
and foster family relationship
More than 20 underprivileged students and their parents took part in the first
tour organized in February 2015
Recycle your Read
The public
Encourage book recycling and give

underprivileged people better access to
books
Collected more than 26,000 books in five months valued at over HK$124,600
Encouraged sharing books, raised environmental awareness and extended the
lifespan of literature in collaboration with World Green Organization and 22
NGO partners
29
Seminars, competitions, forums and other events that frame reading in different contexts
attracted people from all walks of life to embrace reading:
The last Young Writers Debut Competition, expanded from Hong Kong and the
mainland to Taiwan and Macau, drew 2,070 entries and the eight winners had their
books published and distributed in all four territories. The past five competitions have
so far got 41 young authors into print for the first time.
Womens Well-being Reading Seminar series gave 138 participants insights on managing
stress and helped promote gender equality.
Books You Must Read Before Thirty seminar with three young entrepreneurs was
organized to advocate independent business to an audience of 30.
CASE STUDY
SHKP Vertical Run for Charity Race to Shanghai IFC

Our concept of Exercise for Good means people treating themselves well and spreading
good in the community. We introduced the SHKP Vertical Run for Charity in Hong Kong
as a charity fundraising event to encourage healthy living and giving in 2012. The runs
had so far generated over HK$ 17 million3 to help child and youth services. We used
that experience to stage the Race to Shanghai IFC in 2014 and are proud that both the
Hong Kong ICC and Shanghai IFC races were included in the eight races on the 2014
international Vertical World Circuit.
Reading in the Macrosm forum promoting cross-cultural reading interest and local
origins for thoughtful reflection on Hong Kong reading drew 66 participants.
Supporting education
The SHKP-Kwoks Foundation was established in 2002 to offer assistance to Hong Kong
and mainland students with limited financial means. These students in need would have
the chance to pursue higher education at prestigious universities and give back to the
community after graduation. The Foundation has provided scholarships amounting to over
RMB 300 million for 20,000 students2 to date.
The SmarTone AYP International Exchange Programme Fund established by SmarTone and
the Hong Kong Award for Young People (AYP) enables young people with limited resources
to take part in international exchange programmes and gain international exposure,
develop interpersonal skills and leadership. Donations from the SmarTone HK Challenge
have backed this initiative since October 2007, amounting to nearly HK$ 2.3 million, and 511
young people aged 14 to 25 have benefited.
2 Figure
3 Figure
30
as at December 2015
as at January 2015
Visit SHKP Vertical Run for Charity :

www.shkpverticalrun.com
Encouraging Sports for Charity and Healthy Living
Support active ageing
Promoting community well-being
We heed the governments policy address call to support active ageing and promote
community business to bridge the digital divide of senior citizens. An initiative by the
SmarTone volunteer service team gave free mobile phone workshops for the elderly so they
can be confident in using modern devices and showcased the latest mobile technology that
can make their lives easier.
We care about the well-being of our communities and our SmarTone has responded to
increasing health concerns by developing mobile applications like HealthReach to help
people and families attain better health by monitoring vital signs and managing daily
exercise and diet regimes.
Visit HealthReach: www.healthreach.com.hk
Care for Those in Need

With the help of our employees, we organize various events to give back to our communities.
SHKP Volunteer Team has put in more than 500,000 service hours over the past decade.
The team has grown from a few hundred members in 2003 to approximately 2,200 with the
support of our management and general staff. The team is also extending the scope of its
activities on the mainland.
Our social inclusiveness programme includes visiting to Sky100 Hong Kong Observation
Deck and Noahs Ark Hong Kong, using our two iconic developments to bring people of
different backgrounds and abilities to promote greater inclusion among communities.
Following the start of the programme in January 2014, it has benefited over 600 participants4.
The SHKP Reading Club began working with the Hong Kong Society for the Aged in 2014 to
offer electronic versions of its publications to subscribers of eElderly, an online information
hub for elderly and their caregivers.
Modern Apprenticeship Programme

Our Modern Apprenticeship Programme has been part of our commitment to giving
young people a head start by helping underprivileged secondary school graduates with
unsatisfactory results identify life goals and receive on-the-job training since 2003. Over 200
young people have gone through the programme and many have since joined the Group
as permanent staff. There were 17 participants this year, who had the opportunity to gain
experience in administrative or customer service roles at the Groups various business
operations such as construction and hotels.
Building Homes with Heart Caring Initiative

The Building Homes with Heart Caring Initiative reaches out to the elderly and offers cheer.
Seasonal festive events organized in 2014/15 entertained 10,000-plus seniors. Over 250
SHKP volunteers distributed moon cakes to 7,000 seniors in Kwun Tong, Sham Shui Po and
Sai Kung to celebrate Mid-Autumn festival, and gave gift bags with rice dumplings to 3,000
seniors during Tuen Ng festival. More than 100 volunteers visited over 200 seniors in Eastern
District and Sham Shui Po during the year.
We collaborated with the Social Welfare Department of Hong Kong SAR government and
NGO partners for a fifth year running to sponsor and host Chinese New Year Poon Choi
lunches at Noahs Ark Hong Kong for the elderly. Guests this year included our volunteers
and SHKP Executive Directors Adam Kwok and Mike Wong, Executive Council member
Bernard Chan and Director of Social Welfare Carol Yip with 1,700 seniors from Kowloon City
and North District.
4 Figure
as at January 2015
31

Having recognized that we have an impact on the environment, we strive
to minimize the effect of our day-to-day operations and integrate green
concepts into our products and services. We also promote environmental
awareness to our business partners and the community.
Our Commitments to the Environment

The Group recognizes the importance of timely action in combating climate change. The
Paris Agreement from the 2015 United Nations Climate Change Conference represents a
shared global vision, and we wish to play a role in mitigating and adapting to climate change
effects. We aspire to meet the Hong Kong governments voluntary 40% carbon-intensity
reduction target in 2025 as compared to 2005.1
Environmental policy, strategies, and actions at SHKP are led and overseen by an
Environmental Committee chaired by an Executive Director. We implement environmental
policies in a systematic, disciplined and accountable way. ISO 14001 Environmental
Management System has been accredited across our property management portfolio and
IT infrastructure businesses. Self and third-party assessments are conducted regularly to
evaluate our environmental performance and enable continuous improvement. We have
an online system to collect sustainability data across our diverse businesses since 2014,
which helps us achieve better efficiency in data collection and more effective environmental
performance measurement.
The Groups environmental policy goes beyond law and regulatory compliance and we
had no material non-compliance regarding environmental issues in 2014/15. Proactive
measures have been taken to anticipate emerging policy changes such as waste and water
management issues.
1 Hong
Kong SAR Governments Energy Saving Plan for Hong Kongs Built Environment
2015~2025+, May 2015.
32
Enabling Sustainable Choices

We have 91 stations providing free charging for electric vehicles in 56 commercial or
residential properties.
Our IT infrastructure business uses advanced technology to achieve optimum environmentally
sustainable performance. We have data centre infrastructure management in our data
centres. We are also spearheading efforts to build our data centres to cater for the needs of
the worlds largest cloud service providers and of enterprises looking for private or hybrid
cloud solutions. Cloud computing provides a more efficient, on-demand option to deploy
and operate IT application systems in a business context, and helps reduce the scale of
service infrastructure to improve the competitiveness of companies by reducing energy and
maintenance costs.
We strive to offer greener products and services across our business divisions so customers
can make sustainable choices.
Sustainable products
Buildings account for 90% of the electricity consumed in Hong Kong, so optimizing building
design and retrofitting existing buildings are two strategies highly conducive to reducing
energy consumption. We take factors such as energy efficiency, material use and waste
management into account in decision making from design to construction.
Green technology and innovation play a big role in driving sustainable development in the
property industry. We collaborated with the Hong Kong Polytechnic University to develop
a world-class energy optimizer for the air-conditioning system and an energy-efficient lift
system in ICC, and these save enough electricity annually to supply the energy needs of
6,500 families of four for a month.
We have high standards for development projects to achieve efficiency and sustainability,
and received 43 international certifications for properties in recognition of sustainability in
2014/15. These included 32 certifications under the Hong Kong Building Environmental
Assessment Method (BEAM) and Leadership in Energy and Environmental Design (LEED).
We now have 52 qualified BEAM professionals in our team.
Green Building Certification (BEAM & LEED) in Hong Kong

Certified Buildings Office
Certified Buildings Residential
Sun Hung Kai Centre
BEAM - Excellent
Park Island Phase I
BEAM - Excellent
International Commerce Centre
BEAM - Platinum
LEED - Platinum
YOHO Town
BEAM - Excellent
YOHO Midtown
BEAM - Gold
One International Finance Centre, Shanghai
BEAM - Excellent
LEED - Excellent
Lime Stardom
BEAM - Platinum
Two International Finance Centre, Shanghai
BEAM - Excellent
The Parcville
BEAM - Excellent
Central Plaza
BEAM - Excellent
Villa by the Park
BEAM - Excellent
Millennium City 2
BEAM - Excellent
Avignon
BEAM - Gold
Millennium City 4
BEAM - Excellent
The Wings III B
BEAM Plus - Provisional Silver
Kowloon Commerce Centre Tower A
LEED - Gold
The Wings III A
Kowloon Commerce Centre Tower B
LEED - Gold
Development at Tseung Kwan O Lot 118 Area 66D2
BEAM Plus - Unclassified
Elite Centre
LEED - Core and Shell

Development Programme
(Pre-certification)
Kings Hill
BEAM Plus - Provisional Bronze
Babington Path Project
Kau To Project
Sha Po North Project
IL9020 - Hotel Development in North Point
LOHAS Park Package IV
BEAM Plus Provisional Gold
Nam Cheong Station Development
BEAM Plus Provisional Gold
Century Link
BEAM Plus Provisional Bronze
Kwun Tong Inland Lot 174 (Hoi Bun Road)

Kin Sang Commercial Centre
Data Centre
Tseung Kwan O Data Centre (SUNeVision)
BEAM Plus - Provisional Gold

LEED - Gold (Pre-certification)
We have additionally refurbished many existing offices and malls to achieve higher energy
efficiency.
33
CASE STUDY
Refurbishing commercial buildings for higher energy efficiency

We invest significantly in refurbishing office premises and shopping malls each year regardless
of their age to optimize their energy efficiency with the latest proven technologies. The
following table covering International Commerce Centre, Sun Hung Kai Centre, Mikiki and
Landmark North details our consistent efforts to make buildings greener.
Energy saving practices adopted

1
Air conditioning
- Upgrade chiller or chiller water pumps

that use more energy efficiency
technology
- Encourage tenants to increase indoor

air temperature
- Monitor chiller plant performance closely

via building management system and
analyze data to drive improvement
- Adjust chiller water temperature to
balance performance with energy
efficiency
- Maintain and repair chiller plant facilities
regularly for better performance
- Encourage occupants to switch off

unnecessary lighting
- Provide free energy audits to tenants
to raise awareness
Management
- Implement energy management
systems such as those to ISO 50001
standard
Lighting
- Use lighting control (e.g. timers,
sensors)
- Increase efficiency of air handling units

(e.g. filters with lower air flow resistance)
- Install occupancy sensors to better
anticipate energy demand
Collaboration with occupants

to change behaviour
- Replace lighting with more efficient

LEDs or T5 fluorescent tubes
Lifts
- Operate passenger lifts selectively
during off-peak hours
- Apply zoning controls for new lifts
- Carry out routine maintenance
- Introduce energy efficiency guidelines
34
Building
Usage
Year of
Completion
Energy reduction achieved in

2014/15 compared to 2013/14
(000 KWh / %)
ICC
Office
2010
1,673 / 3.8%
SHKC
Office & Mall
1981
402 / 3.4%
Mikiki
Shopping Mall
2011
773 / 10.6%
Landmark North
Office & Mall
1994
358 / 5.1%
Energy and Carbon Management

We have conducted building energy audits since 2008 and a greenhouse gas calculator
was added to our online data system last year to facilitate reporting and raise awareness of
carbon footprint management across business units. We extended the scope for greenhouse
gas (GHG) emissions monitoring from 44 to 80 buildings2 in this reporting period for greater
transparency.
Our EOC monitors energy consumption in investment properties. The results guide our
building energy and carbon footprint management. The EOC has 25 specialists in building
engineering and management, who is responsible for regular reviews of building energy
efficiency, and disseminating the latest research and relevant international good practices.
Electricity Consumption for Major Buildings Monitored

by the EOC from 2010-2015
We support various energy saving and carbon reduction initiatives, and have conducted
carbon audits in properties since 2008. We audited 69 commercial or residential buildings
in 2014/15.
Materials and Water Use

We use a wide range of materials to produce goods and services throughout our diverse
operations, and recognize our responsibility to source sustainable materials and use them
responsibly. We achieve this through effective procurement and monitoring the efficiency of
materials consumption.
Our head office, property management subsidiaries and four commercial / residential
properties are part of the Lets Save 10L Water campaign by Water Supplies Department of
Hong Kong SAR government to promote water conservation.
Labels and Certificates Attained from the Hong Kong Awards for
Environmental Excellence (as at 30 June 2015):
* Data presented covers 54 properties monitored by EOC.
Wastewi$e
Energywi$e
IAQwi$e
CarbonLess
Construction
Not applicable
Not applicable
Property
management
312
64
25
35
Total
313
65
25
35
2 Please
refer to the Data Tables for details.
35
Waste Management
We support the governments waste reduction targets and waste management measures as
set out in the Hong Kong Blueprint for Sustainable Use of Resources 2013-2022. We manage
our waste through a tiered approach, with a priority on prevention, reuse and recycling.
Following good construction planning and practices to avoid or minimize waste generation
at source, we use computer modelling to simulate environmental impacts and identify and
reduce unnecessary abortive work that generates waste. We produced over 770,000 tonnes
of construction waste in 2014/15, of which nearly 90% was recycled, up from 80% last year.
Recycled materials were used on site as foundation fill, which helped save an estimated
HK$19 million for disposing of fill materials in the reporting period.3 We strive to divert
municipal solid waste from landfills with various programmes. Over 8,000 tonnes of waste
ranging from plastics to food were recycled in 2014/15.4
Our tenants, customers and residents are encouraged to adopt waste separation practices
at source. We organize waste management programmes to help them effectively manage
and reduce waste. These include comprehensive recycling and reuse schemes as well as
seasonal and special campaigns. We engage them together with our staff, to participate
in Wastewi$e Label Scheme, wherein we attain 312 labels across the properties we own or
manage.
At ICC and Park Island, we installed food waste disposers to convert leftover food to organic
fertilizer for gardening. Some are further distributed to organic farms run by our NGO
partners and local schools.
Our property management subsidiaries received the following awards, certificates and
labels in recognition of environmental sustainability achievements:
Hong Kong Green Mark Certification by the Federation of Hong Kong Industries
Q-Mark Council
Hong Kong Awards for Environmental Excellence top five organizations with most
Environmental labels and Carbon Reduction certificates: CarbonLess
Hong Kong Green Organization Certification by the Environmental Campaign
Committee
3+ Honorary Certificate of Wood Recycling & Tree Conservation Scheme by the Hong
Kong Environmental Protection Association
Better World Company Label and Green Office Awards Labelling Scheme (GOALS)
by the World Green Organization
Hong Kong Green Awards 2014 by the Green Council
The HSBC Living Business Award 2014 in the category of Green Achievement
GREEN PLUS Recognition Award 2014 by the CLP Power Hong Kong
3 The
amount saved by recycling construction waste is estimated based on the unit charge rate of
disposing of construction waste to public fills in Hong Kong (HK$ 27/tonne).
4 Please
36
refer to Data Tables for details.
Data Tables
Economic Performance and Community Investment
GRI
reference
G4-EC1
GRI
reference
2014/15* 2013/14
Unit
Direct economic value generated
Unit
2014/15*
2013/14
GJ/m2
0.41
0.46
Construction
GJ/m
0.05
0.04
Property management
GJ/m2
0.46
0.77
GJ/ room night
0.31
0.35
GJ/m2
13.53
Energy intensity 3
Revenue
HK$ million
G4-EC6
Proportion of senior management hired from the local

community at siginificant locations of operation (i.e. Hong Kong)
G4-SO1
Employee volunteering hours1
%
hours
66,783
75,100
100
121,632
121,033
Head office
G4-EN5 /
CRE1
Hotels
Environmental Performance
GRI
reference
Telecommunications
Unit
2014/15*
Cement
G4-EN1
Head office
pc
tonnes
5,660,964
52,590
1,209,014
5,214
Construction
m3
650,414
5,669
Property management
3,162,057
Hotels
m3
1,569,972
2,680
2,621
GJ/m
m3
Cement mortar
21,534
6,828
Concrete
m3
835,772
418,032
Disc
m3
148,500
69,424
Joist Steel
tonnes
32,185
14,369
Reinforcing steel bars
tonnes
270,979
146,798
Sand
tonnes
69,640
17,675
Stones
tonnes
8,592
8,068
Head office
m3/m2
0.23
m2
78,818
46,132
Construction
m3/m2
0.07
m /m
0.02
m3/room night
2.01
Telecommunications
m /m
0.10
IT infrastructure
m3/m2
0.05
Marble / Tile
G4-EN8
Telecommunications
IT infrastructure
Total energy consumption
CRE2
gigajoules (GJ)
8,316,987
5,622,896
Head office and property related businesses
GJ
7,480,957
5,622,896
Telecommunications
GJ
370,547
IT infrastructure
GJ
465,483
GJ
2,803,332
2,140,771
GJ
1,969,781
2,140,771
Electricity consumption
Telecommunications
GJ
368,114
IT infrastructure
GJ
465,437
Gas consumption
GJ
5,433,312
3,428,844
GJ
5,433,312
3,428,844
Telecommunications
GJ
IT infrastructure
GJ
Fuel consumption (stationary & mobile sources)
GJ
80,343
53,280
GJ
77,863
53,280
Telecommunications
GJ
2,434
IT infrastructure
GJ
46
Building water intensity4
Energy consumption within the organization 3
G4-EN3
Total water withdrawn 4
Major construction materials used2

Bricks
8.03
5,392,958
IT infrastructure
2013/14
Property management
Hotels
Operational data of telecommunications and IT infrastructure is included for the first time.
Calculated in calender year.
Refer to 38 construction sites in 2014/15; and 26 construction sites in 2013/14.
Refer to head office, 39 construction sites, 331 buildings from property management (consumption of
common area and air conditioning system in office buildings and shopping malls), hotels, telecommunication
retail stores, and IT data centres in 2014/15; and head office, 26 construction sites, 369 buildings from property
management (consumption of common area and air conditioning system in office buildings and shopping
malls) and hotels in 2013/14.
Data is included for the first time. Construction refers to 26 construction sites. Property management refers to
244 buildings.
37
Data Tables
Human Capital
GRI
reference
G4-EN15
Unit
Direct GHG emissions (scope 1) 5
tonnes of CO2
equivalent
(tonnes CO2e)
2014/15*
2013/14
5,786
3,621
G4-EN16
Indirect GHG emissions (scope 2) 5
tonnes CO2e
299,592
227,648
G4-EN17
Other indirect GHG emissions (scope 3) 5
tonnes CO2e
2,164
1,249
GRI
reference
Total workforce in Hong Kong
G4-10
Head office
kg CO2e / m2
63.7
Property management
kg CO2e / m2
54.7
kg CO2e /
room night
45.7
771,112
350,498
Hotels
G4-EN23
G4-EN23
tonnes
Percentage of solid construction waste recycled
89.6
85.0
Percentage of solid construction waste to landfill
10.4
15.0
Waste disposed to landfill (excluding construction)
kg
Permanent
G4-10
G4-EN23
G4-EN29
kg
266,502
280,421
Batteries
kg
1,682
2,493
Books
kg
3,945
9,269
Clothes
kg
413,443
520,546
Cooking oil
litre
18,532
23,712
Food
kg
149,936
387,996
Glass
kg
75,329
112,916
Metal
kg
803,132
192,529
Paper
kg
5,985,335
7,897,770
Plastic
kg
334,019
3,711,197
Wood
Monetary value of significant fines and
total number of non-monetary sanctions for
non-compliance with environmental laws and
regulations
kg
10
1,089
number
Refer to head office, 39 construction sites, 80 buildings from property management and hotels for 2014/15;
and head office, 26 construction sites, 44 buildings from property management and hotels for 2013/14. The
number of buildings from property management businesses monitored for GHG emissions is increased from
last years 44 to 80 for this year. Calculation is referenced to the methodology of Guidelines to Account
for and Report on Greenhouse Gas Emissions and Removals for Buildings in Hong Kong - 2010 edition;
emissions factors for electricity purchased is referenced to the information released by CLP and HEC in 2014.
Other indirect GHG emissions (scope 3) include water use, sewage treatment and paper waste disposal.
Telecommunications and IT infrastructure operations are not in the scope of reporting.
38
25.168
1,493
176
no. of
female
no. of
female
no. of
male
12,492
7,904
7,883
Telecommunications
938
555
IT infrastructure
139
36
2,333
2,382
2,330
2,442
2,332
2,382
Telecommunications
IT infrastructure
New hires in Hong Kong
Under 30
Telecommunications
IT infrastructure
30-50
9,409
no. of
no. of
male
female
1,271
900
10,430
no. of
no. of
male
female
1,375
1,005
1,161
845
110
54
1,609
1,434
1,891
1,719
1,488
1,358
Telecommunications
79
74
IT infrastructure
42
2,061
2,134
2,125
2,315
Above 50
25.168
24,759
8,474
Head office and property related businesses8
G4-LA1
26,428
12,162
Contract9
Waste recycled7
2013/14
no. of people
13,239
88,531,893 150,804,041
Aluminium cans
Telecommunications
no. of
male
Total workforce by employment contract and gender
Construction waste
Weight of construction waste generated

IT infrastructure
GHG emissions intensity from buildings 6

CRE3
2014/15*
no. of people
2,061
2,134
Telecommunications
IT infrastructure
Data is included for the first time. Telecommunications and IT infrastructure operations are not in the scope
of reporting.
Refer to head office, 263 buildings from property management and hotels for 2014/15; and head office,
323 buildings from property management and hotels for 2013/14. Telecommunications and IT infrastructure
operations are not in the scope of reporting.
8
Refers to full time employees from head office, construction, property management and hotels.
9
Seasonal and part-time employment does not cause significant vaiartions to the total workforce.
Data Tables
2014/15*
GRI
reference
no. of
male
2013/14
no. of
female
no. of
male
no. of
female
GRI
reference
Hotels
G4-LA1
Property management
Telecommunications
IT infrastructure
Total number of work-related fatalities
no. of male / female
0/0
0/0
20.5 / 28.9
27.0 / 30.8
14
29
15
23
30-50
21
44
28
35
Lost days rate11
0.19
0.24
Absentee rate11
1.02
1.13
82
Under 30
108
22
64
18
30-50
100
30
86
21
G4-LA6
Injury rate (sick leave equal to or

greater than 3 days)
per 1,000 workers

(male / female)
Above 50
55
22
38
14
Under 30
81
76
87
100
Percentage of the organization

operating in verified compliance
with an internationally recognized
occupational health and safety
management system (OHSAS 18001) 12
143
85
148
112
Average hours of training per year per employee by gender
30-50
CRE6
% of employees
Above 50
40
29
41
15
Male
hours
11.9
10.6
Under 30
438
400
459
439
Female
hours
8.5
7.8
Average hours of training per employee by employee category
30-50
741
676
937
788
Above 50
978
1,088
990
1,193
G4-LA9
G4-LA9
Managerial
hours
14.3
14.1
Under 30
101
54
Officer-grade
hours
15.4
16.2
30-50
126
100
Supporting
hours
10.4
8.3
Operational
hours
9.5
8.5
Above 50
Under 30
30-50
Above 50
Total number of employees who took

parental leave
G4-LA3
2013/14
Under 30
Above 50
Construction
2014/15*
Occupational Health and Safety
Total employee turnover by age group and gender10

Head office
Unit
Total number of employees who returned

to work after parental leave
Return to work rates, by gender
52
155
186
81
Employees receiving regular performance reviews by gender

G4-LA11
180
80
137
100%
96.8%
98.8%
96.5%
10
92.5
91.8
Female
83.6
82.4
Employees receiving regular performance reviews by employee category
142
155
Male
G4-LA11
The definition of employee turnover follows respective industry standard in accordance to business nature.
11
For our hotel business, turnover is defined as employees who leave the company voluntarily or due to
retirement, dismissal or other reasons. For our Head Office, construction and property management
businesses, voluntary turnover is included in the calculation.
12
Managerial
100.0
100.0
Officer-grade
100.0
100.0
Supporting
100.0
100.0
Operational
84.0
83.4
Data are not available for scheduled hours to be worked by gender, so overall lost days and absentee rates
are provided.
Our construction and property management operations implement OHSAS 18001 accredited occupational
safety management systems. Contractors and subcontractors are required to follow in-house occupational
health and safety management policies and applicable procedures.
39
Data Tables
GRI
reference
Unit
2014/15*
2013/14
GRI
reference
no. of male/female
1,022 / 457
842 / 373
852 / 368
Head office and property

related businesses
Total no. of people
19
19
Telecommunications
no. of male/female
155 / 89
Telecommunications
Total no. of people
15
IT infrastructure
no. of male/female
15 / 0
IT infrastructure
Total no. of people
14
no. of male/female
1,807 / 1,067
1,504 / 918
Head office and property related businesses no. of male/female
1,538 / 936
258 / 125
% of male / female
95 / 5
95 / 5
Officer-grade
Telecommunications
IT infrastructure
no. of male/female
no. of male/female
11 / 6
no. of male/female
1,808 / 1,877
1,582 / 1,634
1,463 / 1,616
Supporting
Telecommunications
no. of male/female
304 / 240
IT infrastructure
no. of male/female
41 / 21
no. of male/female
10,943 / 7,447
10,894 / 7,421
10,641 / 7,345
Operational
Telecommunications
no. of male/female
221 / 101
IT infrastructure
no. of male/female
81 / 1
<30 / 30-50 / 50+
17 / 982 / 480
20 / 808 / 387
<30 / 30-50 / 50+
17 / 792 / 411
Telecommunications
<30 / 30-50 / 50+
0 / 180 / 64
IT infrastructure
<30 / 30-50 / 50+
0 / 10 / 5
by gender
related businesses
G4-LA12
Managerial
Officer-grade
<30 / 30-50 / 50+
594 / 1,921 / 359
573 / 1,541 / 308
<30 / 30-50 / 50+
580 / 1,566 / 328
Telecommunications
<30 / 30-50 / 50+
13 / 341 / 29
IT infrastructure
<30 / 30-50 / 50+
1 / 14 / 2
Supporting
<30 / 30-50 / 50+

<30 / 30-50 / 50+
1,193 / 1,448 / 438
Telecommunications
<30 / 30-50 / 50+
174 / 328 / 42
IT infrastructure
<30 / 30-50 / 50+
1 / 59 / 2
<30 / 30-50 / 50+
1,627/5,381/11,382 1,617/5,407/11,291
<30 / 30-50 / 50+
1,512 / 5,115 / 11,359
Telecommunications
<30 / 30-50 / 50+
105 / 209 / 8
IT infrastructure
<30 / 30-50 / 50+
10 / 57 / 15
Operational
% of male / female
93 / 7
% of male / female
100 / 0
by age group
related businesses
% <30 / 30-50 / 50+
0 / 11 / 89
0 / 5 / 95
Telecommunications
% <30 / 30-50 / 50+
0 / 13 / 87
IT infrastructure
% <30 / 30-50 / 50+
0 / 7 / 93

related businesses
% Chinese /
non-Chinese
100 / 0
100 / 0
Telecommunications
% Chinese /
non-Chinese
87 / 13
IT infrastructure
% Chinese /
non-Chinese
100 / 0
Product Responsibility
GRI
reference
Unit
2014/15* 2013/14
G4-PR2
Total incidents of non-compliance with

regulations and voluntary codes concerning
the health and safety of products and
services
number
G4-PR8
Total number of substantiated complaints

received concerning breaches of customer
privacy
number
CRE8
Type and number of sustsainability

certification, rating and labeling schemes for
new construction, property management,
occupation and redevelopment
number
32 certified
under
LEED or
BEAM
1,368 / 1,835 / 482 1,203 / 1,588 / 425
Telecommunications
IT infrastructure
by minority group membership
Total workforce by employee category and age
40
2013/14
Managerial
G4-LA12
2014/15*
Composition of the Board of Directors
Total workforce by employee category and gender
G4-LA12
Unit
Global Reporting Initiative G4 Content Index - Core

GRI G4
Indicator
Detail
HKEx ESG
Reporting Guide
/ UNGCs Ten
Principles
IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES

Page
Remarks
G4-17
Entities included in
financial
statements;
mention
those
not
covered by this report
Overall
Approach 10
G4-18
Materiality assessment
process
Reporting
Principle 11
10
G4-19
List of material aspects
Reporting
Principle 11
10
GENERAL STANDARD DISCLOSURES

STRATEGY AND ANALYSIS
G4-1
Message from the

Chairman and Managing
Director
ORGANIZATIONAL PROFILE
G4-3
Name of organization
G4-4
Primary brands, products

and services
3-6
G4-5
Location of headquarters
G4-6
Countries of operation
n/a
G4-7
Nature of ownership
G4-8
Markets served
3-6
G4-9
Scale of the organization
KPI B1.1
3-6
KPI B1.1
G4-10
Workforce data
UNGCs
Principle 6
38
G4-11
Collective bargaining
agreements
UNGCs
Principle 3
n/a
G4-12
Supply chain description
GD-B5
25-27
G4-13
Significant changes to
organization size, structure,
ownership or supply chain
A list of our principle

subsidiaries is found on
pp. 201-206 of our Annual
Report 2014/15
Hong Kong
Hong Kong, Mainland China
and Singapore
Listed on The Stock Exchange
of Hong Kong Limited
A detailed breakdown of
financial information is found in
our Annual Report 2014/15
Seasonal
and
part-time
employment does not cause
significant variations to the total
workforce
None of our employees
are covered by collective
bargaining agreements
n/a
No significant change
G4-14
Report how precautionary

approach is addressed
32-36
Please refer to the Groups

environmental policy:
w w w. s h k p . c o m / P a g e s /
environmental-mission-andstrategy
G4-15
Charters
G4-16
Memberships
G4-20
Aspect boundary within

the organization
n/a
A list of our principle subsidiaries is found

on pp. 201-206 of our Annual Report
2014/15
Aspects that have an impact within the

Group only: (1) Employment practices,
(2) Employee development and succession
planning, (3) Employee engagement and
(4) Diversity and equal opportunities
All other aspects have an impact both
inside and outside the Group
G4-21
Aspect Boundary outside

the organization
G4-22
Effect of and reasons

for any restatements of
information provided in
previous reports
G4-23
Significant changes in
scope / Aspect Boundary
n/a
ESG
Strategy and
Reporting 9
See remark for G4-20 above
n/a
The scope is expanded to include

telecommunications and IT infrastructure
businesses
No significant change in aspect boundary
STAKEHOLDER ENGAGEMENT
G4-24
List of stakeholders
engaged
Overall
Approach 6
G4-25
Basis of identification and

selection of stakeholders
Overall
Approach 6
G4-26
Stakeholder engagement
approach and frequency
Overall
Approach 6
G4-27
Key topics and concerns

raised by stakeholders
and the organizations
response
Overall
Approach 6
Stakeholders are identified based on their

knowledge of selected material issues and
in-scope businesses
41
REPORT PROFILE
G4-28
Reporting period
Reporting
Principle 11
G4-29
Date of most recent previous

report
Reporting
Principle 11
n/a
G4-30
Reporting cycle
Reporting
Principle 11
G4-31
Contact point
G4-32
GRI in accordance option

chosen
G4-33
External assurance
1, 45
GRI G4
Indicator
Please refer to 2013/14
Sustainability Report published
in Q2 2015
Governance structure
G4-EC1
Core
KPI B8.2
3-5,
11-13
MARKET PRESENCE
3-6,
11-18
G4-EC6
Proportion of senior
management
hired from the
local community at
significant locations
of operation
1, 37
Hong Kong is the only location of

operation covered in the scope of
reporting
25-26,
28-31
Our indirect economic impacts include

the jobs supported in the supply chain
and community initiatives
n/a
We work closely with government

and
local
communities
when
developing our properties, and must
take into consideration the impact
of our developments on local traffic
conditions and other infrastructure
services. While our investments are
commercial, we go beyond regulatory
requirements to build high quality
properties and also invest in enhancing
the surrounding environment, e.g. the
YOHO integrated complex project in
Yuen Long, p.20
INDIRECT ECONOMIC IMPACTS
Describe the organizations

values, principles, standards
and norms of behaviour
7,
11-13
More details on our website:

http://www.shkp.com/en-US/
Pages/building-homes-withheart
DMA
ANTI-CORRUPTION
Information on policies and
compliance with relevant laws
and regulations relating to
bribery, extortion, fraud and
money laundering
Number of concluded legal
cases
regarding
corrupt
practices brought against the
issuer or its employees during
the reporting period and the
outcomes of the cases
Description of preventive
measures and whistle-blowing
procedures, how they are
implemented and monitored
42
Remarks
3-5
Economic value
generated and
distributed
DMA
More details in the Corporate

Governance Report section of
our Annual Report 2014/15,
pp. 98-111
Page
ECONOMIC PERFORMANCE
DMA
ETHICS AND INTEGRITY
G4-56
HKEx ESG
Reporting Guide
/ UNGCs Ten
Principles
SPECIFIC STANDARD DISCLOSURES
GOVERNANCE
G4-34
Detail
GD-B7
7, 27
G4-EC7
Development
and impact of
infrastructure
investments and
services supported
KPI B7.1
UNGCs
Principle 10
PROCUREMENT PRACTICES
GD-B5 , KPI B5.1
KPI B5.2
DMA
KPI B7.2
7, 27
G4-EC9
Proportion of
spending on local
suppliers
25-27
25-26
Local suppliers are defined as suppliers

in Hong Kong; Hong Kong is the only
location of operation covered in the
scope of reporting
MATERIALS
WASTE
GD-A1
GD-A2
DMA
G4-EN1
UNGCs
Principle 7,8,9
Materials used by weight
or volume
KPI A2.5
DMA
35-36
37
All
materials
disclosed
are
non-renewable materials. Use of
packaging material for finished products
is not applicable to our operations
G4-EN23
DMA
CRE5
32-35
G4-EN5
G4-EN15
G4-EN16
G4-EN17
Energy consumption
within organization
KPI A2.1
Energy intensity
KPI A2.1
Direct greenhouse gas

emissions (scope 1)
Indirect greenhouse
gas emissions (scope 2)
KPI A1.1
KPI A1.2
KPI A1.1
KPI A1.2
Other indirect greenhouse KPI A1.1

gas emissions (scope 3)
KPI A1.2
KPI A1.3
KPI A1.4
KPI A1.6
38
There are no hazardous

waste
processed
by
the Group within the
reporting period
Land remediated and in need of

remediation for the existing or
intended land use, according to
applicable legal designations
n/a
The Group purchases

land directly from the
government
SUSTAINABLE BUILDINGS
UNGCs
Principle 7,8,9
G4-EN3
Description of the significant impacts

of activities on the environment and
natural resources and the actions
taken to manage them
36
LAND DEGRADATION, CONTAMINATION, AND REMEDIATION
ENERGY AND GREENHOUSE GAS EMISSIONS

GD-A1, GD-A2
KPI A1.1
KPI A1.5
KPI A2.3
UNGCs Principle
7, 8, 9
GD-A3
37
Renewable energy is not common

in Hong Kong, all energy (including
electricity) consumed is therefore
assumed to be from non-renewable
sources
37
38
Methodology references: Guidelines to

Account for and Report on Greenhouse
Gas Emissions and Removals for
Buildings in Hong Kong - 2010 edition;
emissions
factors
for
electricity
purchased references: information
released by CLP and HEC in 2014
38
See remark for G4-EN15 above
38
See remark for G5-EN15 above. Other

indirect GHG emissions (scope 3) include
water use, sewage treatment and paper
waste disposal. Telecommunications and
IT infrastructure operations are not in the
scope of reporting
CRE1
Building energy intensity
37
CRE3
Greenhouse gas
emissions intensity
from buildings
38
DMA
Description of the significant impacts
of activities on the environment and
natural resources and the actions
taken to manage them
Total water withdrawal

by source
KPI A2.2
KPI A2.4
37
CRE2
Building water intensity
KPI A2.2
37
KPI A3.1
32-36
GD-B1 , GD-B4
DMA
UNGCs Principle
3, 4, 5, 6
G4-LA1
Total number and rates of new

employee hires and employee
turnover by age group, gender and
region
G4-LA3
Return to work and retention rates

after parental leave, by gender
KPI B1.1
KPI B1.2
14-18
38-39
39
All
permanent
and
contract employees are
entitled to parental leave
OCCUPATIONAL HEALTH AND SAFETY

GD-B2 , KPI B2.3
DMA
G4-LA6
Municipal water supply is the only source

for in-scope entities
32
EMPLOYMENT PRACTICES
WATER
G4-EN8
UNGCs Principle
7, 8, 9
CRE6
UNGCs
Principle 1, 2
Rates of injury, lost days and
absenteeism, and total number of
work related fatalities by region and
gender
Percentage of the organization
operating in verified compliance
with an internationally recognized
occupational health and safety
management system
KPI B2.1
KPI B2.2
17,27
39
39
43
EMPLOYEE DEVELOPMENT AND SUCCESSION PLANNING
CUSTOMER SATISFACTION AND RESPONSIBILITY
GD-B3
DMA
UNGCs
Principle 6
G4-LA9
Average hours of training per

year per employee by gender,
and by employee category
G4-LA11
Percentage of employee
receiving regular performance
reviews, by gender and
employee category
KPI B3.2
DMA
14-18
39
39
DIVERSITY AND EQUAL OPPORTUNITIES
G4-PR2
Total number and incidents of

non-compliance with regulations
and voluntary codes concerning
the health and safety impacts of
products and services
GD-B6
40
G4-PR5
Results of surveys
customer satisfaction
KPI B6.4
23
G4-PR6
Sale of banned
products
CRE8
Type and number of sustainability

certification, rating and labelling
schemes for new construction,
management, occupation and
redevelopment
GD-B1
DMA
G4-LA12
UNGCs
Principle 6
Composition of governance
bodies and employees per
employee category
17
40
Breakdown of total workforce

by minority group is currently
not available, as we only
collect
information
on
nationality and place of birth
19-24
or
measuring
disputed
n/a
16
Channels and performance of
employee engagement
CUSTOMER PRIVACY
DMA
G4-PR8
16
COMMUNITY INVESTMENT
KPI B6.5
24
G4-SO1
CRE7
44
UNGCs
Principle 1, 8
Percentage of operations that

implemented local community
engagement
28-31
KPI B8.1
UNGCs
Principle 1
Number of persons voluntarily

and involuntarily displaced and/
or resettled by development,
broken down by project
Total number of substantiated

complaints regarding breaches
of customer privacy and losses of
customer data
40
There were no substantiated

complaints regarding breaches
of customer privacy or losses
of customer data during the
reporting period
GRIEVANCE MECHANISMS
GD-B8
DMA
SHKP does not sell any banned

or disputed products
6, 12,
21, 33,
36, 40
EMPLOYEE ENGAGEMENT
DMA
There is no non-compliance
incident during the reporting
period
28-31,
37
n/a
7,
23-24
DMA
Community investment and
engagement are managed
at Group level; therefore
100% of the businesses in this
reporting scope implement
local community engagement
The Group acquires land
directly from the government.
We do not engage in any
resettlement process, and thus
we do not know the number of
persons affected if any
COMPLIANCE
UNGCs
Principle 7
DMA
G4-EN29
Monetary value of significant fines

and total number of non-monetary
sanctions for non-compliance
with environmental laws and
regulations
n/a
We see compliance as a
minimum requirement and
require all employees and
suppliers to comply with all
applicable laws and regulations
38
There is no non-compliance
incident during the reporting
period
Verification Statement
Scope and Objective
Hong Kong Quality Assurance Agency (HKQAA) was commissioned by the Sun Hung Kai
Properties Ltd (SHKP) to provide an independent verification of its Sustainability Report
2014/15 (the Report) which was prepared in accordance with the Core option of the G4
Sustainability Reporting Guidelines and the associated Construction and Real Estate Sector
Disclosures requirements of the Guidelines issued by the Global Reporting Initiative (GRI).
Reference was also made to the latest Environmental, Social and Governance Reporting Guide
(ESG Reporting Guide) addressed in Appendix 27 of the Rules Governing the Listing of
Securities on The Stock Exchange of Hong Kong Limited (SEHK), and the ten principles of the
United Nations Global Compact (UNGC).
The aim of this verification activity is to assess the Reports adherence to GRIs principles of
Stakeholder Inclusivity, Materiality and Responsiveness; the UNGC and the SEHKs ESG
Reporting Guide.
The Report states SHKPs major activities and achievements on sustainable development from
1 July 2014 to 30 June 2015.
Assurance Methodology
The assurance process used in this verification exercise was based on current best practices
and our management procedures, and was carried out with reference to the following criteria:
GRIs G4 Sustainability Reporting Guidelines, and the associated Construction and Real
Estate Sector Disclosures
The ten principles of the UNGC
SEHKs ESG Reporting Guide
Accuracy and reliability of the aggregated data was sample tested. The processes for data
collection, aggregation, estimation, calculation and internal vetting were reviewed and examined
in order to confirm the extent of robustness. Detail verification results and recommendations
are stated in a separate report provided to SHKP.
Independence
HKQAA was not involved in collecting and computing the reporting data, and in the
development of the Report. HKQAAs activities are independent from SHKP.
Conclusion
The verification team confirmed that the Report which was prepared based on factual statements
and the data contained within the Report are accurate and reliable.
Based on the evidence sampled, the verification team observed that the information presented
in the Report has provided a material and complete representation of the performance of SHKP
in the context of sustainable development. It is also a fair and true representation of commitment,
targets, progress and performance on SHKPs sustainable development achievements.
To conclude, the Report is able to provide an adequate and reasonable account of SHKPs
sustainability performance on material aspects during the reporting period, and to demonstrate
satisfactory disclosure of SHKPs sustainability performance according to the Core option of the
GRIs G4 Sustainability Reporting Guidelines and the associated Construction and Real Estate
Sector Disclosures as well as the SEHKs ESG Reporting Guide. The Report also demonstrates
a gradual progress to fulfill the ten principles of the UNGC.
In addition, reliability of sampled sustainability information and data was verified against the
International Standard on Assurance Engagement 3000 Assurance Engagement Other Than
Audits or Reviews of Historical Financial Information issued by the International Auditing and
Assurance Standards Board for a reasonable level of assurance.
The assurance process consisted of:
Signed on behalf of Hong Kong Quality Assurance Agency
reviewing sampled documents

checking the data management mechanism
communication with or interviewing relevant personnel responsible for compiling the data
verifying the selected representative samples and examining the supporting evidence,
including raw data that supports the report contents
undertaking analytical procedures over the reported data
Ronnie Ng
Thomas Ma
Assistant General Manager

30 March, 2016
Verification Team Representative

30 March, 2016
45
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Sun Hung Kai Properties Limited

Sustainability Report 2014/15

Our Reporting Approach

Message from the Chairman and Managing Director

Our Approach to Sustainability

Value Created for Stakeholders

Value Created for People

Value Created for Customers

Value Created for Supply Chain

Value Created for Community

Value Created for Environment

Global Reporting Initiative G4 Content Index

Our Reporting Approach

Report Assurance and Verification

We welcome stakeholder feedback and suggestions.

Sun Hung Kai Properties Limited . Sustainability Report 2014/15

Message from the Chairman and Managing Director

Sun Hung Kai Properties Limited . Sustainability Report 2014/15

Raymond Kwok Ping-luen

About Sun Hung Kai Properties Limited

Highlights of Hong Kong Property Business in 2014/15

Sun Hung Kai Properties Limited . Sustainability Report 2014/15

19.6 million sq.ft. under development for sale

28.7 million sq.ft. of completed investment properties

Over 30 million sq.ft. of agricultural land (site area)

Another 2.5 million sq.ft. of investment properties under

Mobile telephone services

Transport infrastructure operations and management

Projects Completed in 2014/15

68.0 million sq.ft. under development

11.6 million sq.ft. of completed investment properties

Sun Hung Kai Properties Limited . Sustainability Report 2014/15

Park Vista Phase 1

18 Castle Peak Road,

39 Luen Hing Street,

50 Wong Chuk Hang

Data centres and IT infrastructure

Our investment properties in Hong Kong continued to contribute significantly to our

Hong Kong Land Bank Composition

22.1 million sq. ft.

28.7 million sq. ft.

Information Technology Infrastructure

Sun Hung Kai Properties Limited . Sustainability Report 2014/15

Awards and Recognitions

Memberships and Charters

Business Environment Council (Founding Member since 2002)

Platinum Award for Excellence in Management and

Employers Federation of Hong Kong (Corporate Member since 1994)

The Community Chest

Presidents Award and Second Top Donor

Best Mix Developer in Asia

Top Ten 2015 Developers Hong Kong

Platinum Trusted Brand Award: Property Developer

The Hong Kong Council

Caring Company designations (For 77 group companies

Yahoo! Hong Kong

Yahoo! Emotive Brand Awards (SHKP & SmarTone

Sun Hung Kai Properties Limited . Sustainability Report 2014/15

Our Approach to Sustainability