Swire Properties’ commitment to sustainable development (“SD”) remains unwavering. In 2025, we continued to build sustainable and resilient communities, develop and manage future-ready green buildings, foster inclusive, wellbeing-oriented workplaces, and strengthen our ties with our partners and the community to create lasting, positive impact.

This year marked another significant milestone in our sustainability journey. I am proud to announce that we achieved over 85% of our 2025 sustainability targets, with some targets already exceeded, laying a strong foundation as we advance towards our vision for 2050.

We remain steadfast in our beliefs that a sustainability-focused business is a resilient business, and that ambition and leadership position are our strategic advantage.

In a world marked by dynamic geopolitical tensions, evolving stakeholder expectations and increasingly frequent extreme weather events, companies with a clear sustainability vision, strategy and commitment will stand apart; and by embedding sustainability as a core driver of business value, these companies position themselves for long-term success.

Swire Properties has focused on sustainability for more than a generation. In late 2024, we undertook a comprehensive review of our SD 2030 Strategy, reimagining our long-term sustainability ambitions to ensure they support our ambitious growth plans. After a year-long process, we unveiled our new SD 2050 Vision:

Anchored by our four commitments to “Zero” – Zero Harm, Net-Zero Carbon, Zero Waste to Landfill and Water Neutrality – SD 2050 is structured around 27 focus areas, with 140 KPIs established for 2030 and 2035 across five strategic pillars.

Our updated SD strategy provides a clear roadmap to drive innovation, manage risks proactively and optimise resource efficiency – ultimately creating long-term value for our stakeholders and leading transformative change in the built environment that harmonises business, people and nature.

In 2025, Swire Properties continued to mitigate climate-related risks, strengthen resilience and embed climate-conscious decision-making into our operations and investments. We advanced our journey towards net-zero emissions, achieving an absolute reduction of 52% in our Scope 1 and Scope 2 emissions compared to our 2019 baseline, surpassing the 25% reduction required for our 2025 science-based targets. 

We attribute this success to our continuous retrofitting of energy-efficient building systems and the adoption of cutting-edge technologies, such as the Photovoltaics, Energy Storage, Direct Current, and Flexible Power (“PEDF”) systems installed in some portfolios in Hong Kong and the Chinese Mainland. We also continued to ramp up our adoption of renewable energy – HKRI Taikoo Hui and Taikoo Li Qiantan secured 80% off-site renewable electricity covering both landlord and tenant operations starting in Q2 and Q3 respectively, bringing the proportion of our Chinese Mainland portfolio powered by renewable electricity to 88%.

We were also the first company in Hong Kong and the Chinese Mainland to have our near-term, long-term and net-zero targets validated under the Science Based Targets initiative (“SBTi”) Buildings Criteria. This commits us to an ambitious, whole-building based decarbonisation pathway aligned with the Paris Agreement, and reinforces our work with the Business Ambition for 1.5°C and the UNFCCC Race to Zero campaigns.

To support the delivery of our net-zero targets, we continued to embed low-carbon innovations into our project designs this year. At Taikoo Li Xi’an, we implemented a ground source heat pump system to extract geothermal energy which will provide more than 60% of the project’s total annual heating demand. We have also begun designing timber structure buildings, which reduce embodied carbon by approximately 31% compared to conventional concrete designs. One of these buildings is designed to be net zero, setting a new benchmark for the industry.

Ensuring the health and safety of our employees, tenants, contractors, and communities remains paramount across all our operations. We remain steadfast in our commitment to Zero Harm. Through the successful implementation of our 2023-2025 Health and Safety Roadmap – supported by our investments in technology, training and awareness programmes – we achieved historic performance across both key leading and lagging indicators this year: Our Lost Time Injury Rate (“LTIR”) was 0.26 for our property portfolios, representing a 53.6% year-on-year improvement.

We also launched the “Safety In Every Step” campaign to raise awareness and improve safety practices when working at height, and the “Safety Starts With US” campaign which underpins our approach to health and safety and our commitment to building a best-in-class interdependent safety culture across our operations.

We continued to invest in safety-related technology and innovation. Taikoo Li Xi’an is setting new benchmarks in smart construction in the Chinese Mainland through our Smart Site Framework, which uses robotic and AI technologies such as real-time safety monitoring, digital access control systems, safety inspections, hazard reporting and robotic lift installation to reduce risks to workers.

Our three flagship tenant engagement programmes reached new heights this year. The sign-up rate for the Green Performance Pledge (“GPP”) exceeded our target, with 186 tenants representing 66% of occupied office space supporting the initiative. Collectively, our GPP tenants in Hong Kong reduced electricity use by 436,400 kWh (equivalent to 132 households’ annual consumption) and diverted over 200 tonnes of waste from landfill between April 2024 and March 2025.

We also launched the Green Kitchen Initiative (“GKI”) 3.0 this year, introducing a new Sustainable Operations Recognition Scheme and a smart energy metering pilot that has deepened landlord-tenant collaboration in terms of sustainable food and beverage (“F&B”) outlet design, green operations and data-driven energy management. By the end of 2025, 149 F&B tenants had joined the GKI – 55 in Hong Kong and 94 in the Chinese Mainland.

In July 2025, we expanded our Green Retail Partnership (“GRP”), signing a memorandum of understanding with Kering, global luxury group, committing us to working together to enhance environmental, social and governance (“ESG”) performance across their stores in our retail malls in Hong Kong and the Chinese Mainland. Together, we will advance best practices in sustainable store design, ESG data sharing and monitoring, and environmental performance in store operations.

In partnership with EcoVadis, we continued to deepen our engagement with our business partners with the launch of our three-tier supplier assessment approach – a robust independent system that evaluates supplier sustainability performance. In 2025, 100% of our active suppliers underwent ESG risk screening. We also hosted webinars for our suppliers in Hong Kong and the Chinese Mainland, providing them with guidance and tools, and introduced innovative sustainability-linked financing solutions to support ongoing ESG performance improvements.

Our reputation as a leading employer was further enhanced through numerous human resources (“HR”)-related awards. We were named the Most Attractive Employer in the property sector by Randstad for the second consecutive year and received HKIHRM HR Excellence Awards – “Employee Wellness”, “Community Caring”, and “Best Workplace” – underscoring our continued leadership in talent development and attraction.

Over the years, our White Christmas Street Fair has become a cherished tradition to help us connect with and give back to our community. This year, the Street Fair had a deeper meaning. In response to the Tai Po fire tragedy, we dedicated the event to solidarity and hope. It was brought to life by the creativity and empathy of 15 students from our Swire Properties Placemaking Academy who reimagined the Street Fair with a “Colour the Season – LIGHTS OF HOPE” theme. Alongside the community, we raised HKD1.34 million in relief funding for victims of the fire.

In 2025, Swire Properties reached new green building heights. Across our Taikoo Place and Pacific Place portfolios, a total of 16 buildings obtained quadruple Platinum certification under the BEAM Plus, LEED, WELL and WiredScore schemes. These certifications underline our dedication to achieving best-in-class performance in terms of sustainability, health, wellness and digital connectivity, and reinforce our position as a global green building leader. This performance is supported by our robust and enduring commitment to green financing. Approximately 70% of our bond and loan facilities are now sourced from green financing. During the year, we issued green bonds totalling approximately HKD4.5 billion and arranged sustainability-linked loans of approximately HKD5.1 billion. 

This was a truly remarkable year for Swire Properties, made possible by our strong sustainability vision, the dedication of our talented team and the support of our tenants and business partners. As our new SD 2050 Strategy takes effect, I look forward to partnering with all our stakeholders on our progressive SD journey, as we collaborate to create long-term value and resilience and build the world’s most sustainable communities.