Our Board of Directors (“the Board”) is responsible for setting and approving our sustainability strategy. The Board reviews and approves the Sustainability Report, materiality assessment results, sustainability related policies and targets. Responsibility for achieving the Company’s sustainability objectives and implementing the strategy on a day-to-day basis is delegated to the Environmental, Social and Governance Steering Committee (“ESGSC”). The ESGSC reports material SD issues and the progress made towards our 2025 and 2030 key performance indicators to the Board. The Board met [six] times in 2025. The Board discussed the Group’s progress towards meeting the decarbonisation and other ESG targets under SD 2030 Strategy, performance in key sustainability indices, regulatory developments towards sustainability, climate- and nature-related and other key ESG matters regularly at each board meeting.

The Board of Directors acknowledges its responsibility in guiding the Company’s approach to environmental, social, and governance issues. In exercising its oversight responsibilities, the Board considers these risks and opportunities when reviewing the Company’s strategy, major transactions and risk management processes, including evaluating the trade-offs associated with sustainability-related risks and opportunities.

The Board also oversees the establishment of targets linked to ESG-related risks and opportunities (including those associated with climate and nature), diligently monitoring progress towards these targets.

The Board ensures that the Company has, or will develop, the necessary skills and competencies to oversee the ESG strategy and reporting framework designed to address ESG-related risks and opportunities (including those associated with climate and nature). The Board maintains sufficient knowledge of ESG issues through the provision of training on ESG matters (including developments on sustainability and climate-related risks and opportunities), as well as ESG-related regulatory updates. The training ensure that the Board remain aware of the potential impacts of such issues on the Company's business and operations. In 2025, the Board received a dedicated training session focused on ESG regulatory updates. The session provided an overview of the evolution of sustainability reporting with a particular focus on ISSB S1 and S2, highlighting the key principles of sustainability-related and climate-related financial disclosures. It also discussed alignment with existing frameworks such as the GRI Standards and the GHG Protocol and outlined regulatory convergence with HKFRS S1 and S2 and the latest HKEX ESG Code updates, including the implementation timeline for required disclosures.

The Board of Directors has appointed the Audit Committee to oversee the Company’s financial reporting, risk management, internal control systems and ESG-related matters. On behalf of the Board, the Audit Committee annually reviews the continued effectiveness of the Group’s risk management and internal control systems dealing with risk and financial accounting and reporting, the effectiveness and efficiency of operations, compliance with laws and regulations, risk management functions and ESG-related policies, practices and matters. The Chair of the ESGSC reports relevant SD matters, including climate- and nature-related issues, to the Board four times per year.

Our corporate risk register incorporates ESG-related risks, including climate- and nature- related risks. We have also integrated SD factors into our corporate risk analysis. The Company’s Remuneration Policy differentiates pay based on performance goals, with the performance rating serving as a key factor in determining an employee’s overall compensation. Our Chief Executive, relevant strategic leaders and the general managers of our portfolios, have established corporate SD performance metrics and targets, in areas such as health and safety and decarbonisation, which are linked to variable compensation.

Responsibility for achieving the Company’s sustainability objectives and implementing the strategy is delegated to the ESGSC, which is chaired by our Chief Executive. Other members are the Chief Financial Officer and six strategic leaders from the Human Resources, Portfolio Management (Office), Portfolio Management (Retail), Projects, Public Affairs and Facilities Management and Sustainable Development departments and an Independent Non-Executive Director, who is the Chair of our Audit Committee. The ESGSC meets not less than four times a year.

The ESGSC oversees six dedicated SD 2030 working groups – Places, People, Partners, Performance (Environment), Performance (Economic) and SD Communication and Engagement – which are chaired by the respective members of the ESGSC. The working groups are tasked with the day-to-day execution of sustainability-related policies and initiatives as well as the attainment of specific targets within their areas of focus. Please refer to the respective Pillar sections for more details.

The ESGSC meets at least quarterly. In accordance with its Terms of Reference, which were updated in March 2025, the ESGSC is responsible for:

The ESGSC’s climate- and nature-related responsibilities include the formulation and review of climate and nature policies and strategies. This involves evaluating targets and key initiatives focused on climate change mitigation and adaptation, as well as building resilience against climate and nature transitions. The committee assesses significant risks, opportunities and investments related to climate change, energy and carbon management, low-carbon transitions and nature. It also conducts an annual review of the Company’s performance in achieving energy intensity reduction and decarbonisation targets, monitoring progress toward science-based targets and other climate- and nature-related KPIs.

The Company’s Remuneration Policy is designed to align employee compensation with our strategic priorities and performance outcomes. We integrate specific SD performance metrics and targets directly with the variable compensation of our Chief Executive, EXCOM members, relevant strategic leaders, and the general managers of our portfolios. This includes members of the ESGSC.

This performance-based approach ensures that the variable compensation for our Chief Executive, EXCOM members, relevant strategic leaders and general managers is meaningfully linked to the achievement of climate-related targets, such as decarbonisation and health and safety. By embedding these objectives into individual performance appraisals, we ensure that our sustainability ambitions are reflected in their variable compensation outcomes and integrated into our corporate accountability structures.

Our decarbonisation goals are tied to annual improvements in the energy use intensity performance of our existing portfolio and new developments, in order to lead the Company’s efforts to accelerate progress towards achieving our SBTs, driving measurable energy and carbon reduction and contributing to the achievement of the Company’s Net Zero 2050 Vision. For example, our general managers have a balanced scorecard to monitor their performance around energy and water management, staff turnover rate and training hours and performance targets related to energy management in their respective portfolios.

The ESGSC maintains sufficient knowledge of ESG issues through the provision of training on ESG matters (including developments on sustainability or climate-related risks and opportunities), as well as ESG-related regulatory updates. The training ensures that the ESGSC remains aware of the potential impacts of such issues on the Company's business and operations. In 2025, the ESGSC was informed about such topics as the latest global trends in ESG, the evolution of sustainability indices, ESG standards and regulatory updates (e.g. IFRS S1 and S2) and updates to the Company’s climate risk register.

In late 2024, the ESGSC held a comprehensive refresh of Swire Properties’ Sustainable Development vision and strategy to ensure our continued ambition and alignment with global trends. This multi-phase process included benchmarking and ideation workshops, organisation-wide engagement to refine strategic priorities, external and internal validation of proposed goals and final approval of the updated strategy framework and KPIs by the ESGSC, Audit Committee and Board. Please refer to the “SD 2050 Strategy” section for more details.

Each Pillar is supported by a working group. In 2025, there were six SD working groups that continued to work on the KPIs and future targets set for each Pillar for 2030 and 2035. These are:

The members of each working group are carefully selected to ensure the inclusion of employees with diverse backgrounds, types of expertise and varying levels of seniority. The Performance (Environment) Working Group met four times in 2025 to discuss climate- and nature-related matters.

Our SD Communication and Engagement Committee identifies, prioritises and oversees the implementation of communication and engagement plans for initiatives that support our SD 2030 Strategy. This Committee also includes representatives from distinct functions within the Company.

We regularly engage with our stakeholders to understand their priorities, expectations and perceptions regarding SD issues, including climate and nature-related matters. In 2023, we conducted a double materiality assessment review to gather feedback from over 600 internal and external stakeholders through qualitative interviews and a quantitative survey. The topics of green building construction and renovation, energy efficiency, decarbonisation and climate adaptation and resilience were identified as material issues to our business continuity and development. A significant shift was observed in stakeholders’ perceptions towards biodiversity, highlighting its increasing impacts on the environment, society and our business. These issues are consistent and have been incorporated into our SD Strategy.

Our Stakeholder Engagement Strategy focuses on reputation management, engaging key stakeholders including government entities, media outlets and community organisations. This strategy is built around four key pillars:

We recognise the risks and opportunities presented by climate change and nature degradation to our business. We have a suite of sustainability-related policies in place that allow the Company to respond to the effects of climate change and protect nature and local communities.

All policies are reviewed from time to time as appropriate, and at least once every three years.