Climate Change Policy

1. As a developer, owner and operator of mixed-use properties, Swire Properties Limited (the “Company”) is committed to managing climate change risks across its operations and value chain and developing strategies in line with global best practices to mitigate the impact of climate change, to adapt its operations to climate change and to build its climate resilience to support the transition to a net-zero emissions economy.   

2.It is the policy of the Company to:   

Mitigation

(a)reduce its carbon emissions¹  through the establishment and implementation of near-term targets that are aligned with the science-based targets (SBT) and long-term targets to achieve net-zero emissions by 2050;   

(b) adopt industry best practices to improve energy efficiency across its operations – from development of green buildings to energy and carbon management of its buildings;  

(c) increase the use of renewable energy in its buildings through on-site energy generation, purchase of off-site renewable energy supplied externally and other methods where applicable;  

(d)work with supply chain partners to optimise and reduce embodied carbon from new development projects and construction activities; 

(e) communicate with its employees, suppliers, tenants and other customers to encourage them to reduce carbon emissions in their daily operations wherever practicable;  

(f) incorporate climate change considerations in its procurement process, switch to low carbon fuels and electric vehicles, and encourage the use of low carbon and energy efficient products and materials, where practical, or appropriate;  

(g) balance the environmental and social impacts of any remaining carbon emissions with an appropriate amount of carefully selected carbon removal and carbon avoidance projects that provide maximum positive impact, transparency, with a high degree of scientific integrity.  

Adaptation

(h)assess climate-related physical and transition risks and opportunities and enhance its understanding of the impact of climate change on its operations and value chain, including any associated financial risks and opportunities; 

(i)put in place appropriate processes, measures and monitoring systems to prevent or minimise the damage that climate change may cause to the Company’s existing property developments and to take advantage of the opportunities that may arise; 

(j)continue to develop climate-resilient assets and communities and to improve the design of buildings to prevent or minimise the damage that climate change may cause to the Company’s new development projects;  

Resilience

(k)put in place strategies to capture the business and market opportunities that may arise in the global transition to a net-zero emissions economy;  

(l) manage climate change risks as part of its enterprise risk management processes and business continuity plans;   

(m) have in place an appropriate business continuity plan in response to more frequent extreme weather events due to climate change;  

(n)ensure that relevant information and resources are available for building adaptive capacity for monitoring climate change impact on its operations and carbon management objectives and targets;  

(o) communicate with those with whom the Company works, including employees, suppliers, tenants, other customers and local communities, regarding climate change impacts and the Company’s climate change strategies in order to help improve their resilience and preparedness against future climate change; and  

(p) disclose to the public its climate-related risks and opportunities and how they are managed as per the recommendations of the Task Force on Climate-related Financial Disclosures (“TCFD”) framework.  

3.The Company will review this Climate Change Policy from time to time as appropriate, and in any event, once every three years.  

^{[1]  Include direct emissions (scope 1 emissions), indirect emissions (scope 2 emissions) and the value chain emissions (scope 3 emissions) from the upstream and downstream activities associated with the operations of the company}