Sun Hung Kai Properties

There is no evidence that Sun Hung Kai has a low-carbon transition plan. The company should establish a time-bound action plan that outlines how it will transition to a low-carbon economy. This should include medium- and long-term targets, verifiable and quantifiable key performance indicators and financial commitments. Additionally, the plan should be informed by scenario analysis to ensure that the company’s ambition is aligned with a 1.5°C pathway.

Sun Hung Kai has a supplier code of conduct which includes environmental clauses and states that it gives preference to suppliers who adopt sustainability measures and green procurement policies. Nevertheless, the company should include greenhouse gas (GHG) emissions reduction requirements in its supplier selection and collect emissions data from its suppliers. The company should also measure the impact of its engagement so that both the company and its suppliers can monitor the progress being made.

Sun Hung Kai has set an emissions reduction target to reduce the scope 1 and 2 emissions intensity of its operation by 15% by 2029 compared to 2019. However, the scope of this target is incomplete as it does not include scope 3 emissions and does not apply to the company’s entire portfolio. The company should develop long-term and regularly spaced intermediate targets that align with its 1.5°C pathway and cover all its emissions. Setting intermediate targets at gaps of no more than five years will help the company incentivise near-term actions towards longer-term goals. Additionally, the company should clearly report its base year emissions and disclose any use of offsets to allow for a complete analysis of its targets and progress against them.

Sun Hung Kai does not disclose the expected in-use emissions intensity data, or sufficient floor area and in-use absolute emissions data for the buildings it developed in 2021 or previous years. As a result, it is not possible to provide a meaningful assessment of the company’s past emissions trend or projected future performance. Sun Hung Kai also does not quantify commitments to perform renovations for clients to significantly reduce the emissions intensity of existing buildings.

Sun Hung Kai has set a target to reduce its scope 1 and 2 emissions intensity by 25% by 2029 compared to 2019. However, this does not cover the company’s entire portfolio. The company has not developed a vision of what its business will look like in a low-carbon future.

Sun Hung Kai does not have a low-carbon transition plan. However, the company is looking to develop a strategy and long-term targets aligned with the Hong Kong Government’s aim to reach net zero by 2050.

The company is committed to increasing its installed solar capacity, with a plan to increase the number of solar panels at its facilities and sites by 80%. It also commits to achieving sustainability certifications for all new investment properties and is adopting energy-saving measures across its operations.

Sun Hung Kai has engaged with 2,500 tenants in 52 of its managed buildings to promote energy-saving programmes and to offer free energy audits. The company signed two sustainability-linked loans for a total value of USD 3.8 billion to decrease electricity consumption intensity and increase its portfolio of green office buildings.

Sun Hung Kai has set an emissions reduction target and is changing its business model in response to climate change. However, the company has not created a transition plan, does not disclose scope 3 emissions, and its target does not cover all its operations.

No evidence was found of Sun Hung Kai’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders.

No evidence was found of the company undertaking just transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning.

Sun Hung Kai discloses the actions it takes to partner with local educational institutions for campus recruitment and support the government’s youth employment scheme. However, no public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s action to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks.

The company discloses the actions it takes to provide training opportunities for workers and affected stakeholders. For instance, the company provides self-learning channels, including a training library, e-learning programmes and reference materials, to its workers. Furthermore, the company embeds equality of opportunity for women and vulnerable groups in these actions, such as offering training programmes for and single mothers. However, no evidence was found of the company having a process for identifying skills gaps for workers and affected stakeholders or a public commitment to help workers displaced by the transition to re- or up-skill.

No relevant disclosure was found to show if Sun Hung Kai identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders.

No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

Sun Hung Kai expects its business relationships to respect the ILO fundamental rights at work. However, no evidence was found that the company is committed to respecting human rights and the ILO fundamental rights at work in its own operations. No other company policies or commitments related to respect for human rights were found in the public domain. This includes the necessary policies and systems by which the company can ensure respect for basic human rights in its operations and supply chain.

Sun Hung Kai commits to respecting worker health and safety and expects the same commitment of its business relationships. However, no evidence was found that the company discloses quantitative information on health and safety for its workers. Furthermore, no evidence was found of the company having a time-bound target for paying all its workers a living wage. The company discloses some indicators of workforce diversity, such as the gender of its workforce by employee category. However, no relevant disclosure was found of additional indicators of workforce diversity. The company also does not disclose a commitment to promoting gender equality and women’s empowerment.

Sun Hung Kai commits to protecting personal data. However, no evidence was found of the company having a privacy statement regarding the collection, sharing and access to personal data. While the company discloses its global tax strategy, no evidence was found that this is a policy document approved by the highest governance body. The company does have a policy prohibiting bribery and corruption, and it includes corresponding clauses in its business relationship contracts. However, there is no evidence that the company has a lobbying and political engagement policy and that it does not make political contributions.