Swire Properties : Sustainable Development Report 2020

April 09, 2021 at 05:14 am EDT

Sustainable

Development

Report

2020

Table of Contents

Chief Executive's Message

About this Report

Profile of Swire Properties Limited

SD 2030 Strategy

SD Governance

24	Materiality
30	Sustainable Development in Action: INDIGO

49		73	101	121	176
Places		People	Partners	Performance	Performance
				(Environment)	(Economic)

Climate-relatedFinancial Disclosures

Future Targets

GRI and HKEX ESG Reporting

External Charters and Memberships

Performance Data Summary

Assurance Report

Global Reporting Initiative Content Index

HKEX ESG Reporting Guide Index

We welcome your feedback on our sustainable development performance and reporting. You can contact us by email at sustainabledevelopment@ swireproperties.com or fill in the Feedback Form.

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

Chief Executive's Message

The antidote to disruption and uncertainty is action, and this is the context through which we intend to advance to 2030.

Advancing to 2030

2020 has been a year like no other.

As I reflect on this remarkably challenging year, my thoughts immediately go to our employees. All through 2020, our teams worked in extremely difficult conditions to ensure that we continued to provide safe and reliable places for our tenants and communities. I am particularly grateful to our customer-facing staff for the selfless dedication they displayed, day after difficult day. They went above and beyond to keep our properties safe and hygienic, and provided support for our tenants, visitors and local communities.

Throughout the year, we utilised the Swire Properties Community Caring Fund and worked closely with our NGO partners and employees to hold volunteering sessions and donation matching programmes in support of healthcare workers, cleaning contractors and people in need throughout society. To me, these were truly inspiring actions.

My thoughts are then drawn to the idea of "resilience". The year 2020 exposed many vulnerabilities within our cities, businesses and communities. I believe that we will have to work even harder in the years ahead to build economic, social and environmental resilience in all our places. I also firmly believe that our SD 2030 Strategy is more important today than at any point in the past. If, over the next ten critical years, we continue to prioritise SD, we will develop more resilient places regardless of the challenges to come.

This year was particularly important to us in terms of SD, as our teams worked to deliver on our 2020 targets, set in 2016 when we launched the strategy; while also expending much time and effort on formulating our future goals. This resulted in even more ambitious SD targets being set for 2025 and 2030. Given the current global disruptions and uncertainties, it is critical for us to invest further in our SD agenda

- this is reflected in our new five and ten-year targets.

The antidote to disruption and uncertainty is action, and this is the context through which we intend to "advance to 2030".

Climate change continues to be a central focus for our business, and it is encouraging to see governments around the world stepping up to show leadership with clear net-zero carbon targets. In December 2020,

GRI

102-6,102-49,

102-50,102-52

SUSTAINABLE DEVELOPMENT REPORT 2020		3

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

Swire Properties also committed to the Science Based Targets initiative's Business Ambition for 1.5°C campaign, and we are working to ramp up our science-based targets to align with the 1.5°C trajectory, in order to contribute to the transition to a net-zero emissions economy.

Through these science-based targets, we will do our part over the coming decade to support these goals and help decarbonise our economy. We are already well on our way - one example is the progress we made on energy and carbon reduction in the Chinese mainland in 2020; I am proud to share that this year, Sino-Ocean Taikoo Li Chengdu became our first development to be powered by 100% renewable electricity, thereby achieving net-zero carbon in annual electricity consumption for both landlord and tenant operations. This is a significant milestone on our decarbonisation journey, and we will continue to explore opportunities to expand our renewables footprint as the market develops.

In order to strengthen our economic resilience, we must also support the development of green capital markets. Approximately 30% of our current bond and loan facilities are from green financing through green bonds, sustainability-linked loans, and in 2020, our first green loan - a five-year HK$1 billion facility. The proceeds from this loan will fund on-going green building developments and technologies that will save energy and water and enable us to invest further in renewables. As you can see from our 2025 targets, in the years ahead, we intend to increase green financing even further. We hope to see more companies follow suit to accelerate this transition to greener capital markets.

Retaining our high rankings on several leading global sustainability indices this year has been a source of great pride for our employees. This extraordinary year also showed me, again and again, the pride that our people take in creating and caring for our places. Back in 2016, we felt it was important that "Places" sit at the heart of our SD 2030 Strategy; this year has proven that this was a wise choice.

In April, we published our first Places Impact Report, which, together with economists and academic experts, took us over a year to research and write. The objective was simple: to gain understanding on "what makes a great place" in order that we may continue to raise the bar in each of our developments, every single year. The report identified four key determinants of a great place - vibrancy, livelihood, wellbeing, and resilience - which will inform our future development decisions.

For me, these four dimensions capture why we must continue to drive our SD agenda over the coming decade. 2020 was a challenging year for all of us and 2021 will continue to be a test. By focusing on our new targets, we believe we will successfully advance to 2030, supporting livelihoods and wellbeing, and ultimately creating more vibrant and resilient places.

Guy Bradley

Chief Executive

SUSTAINABLE DEVELOPMENT REPORT 2020		4

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

About this Report

This report is the 13th sustainable development ("SD") report of Swire Properties Limited ("Swire Properties", "SPL" or "Company"). The report covers the period from 1st January 2020 to 31st December 2020 and focuses on Swire Properties' businesses, joint ventures, and subsidiaries in property investment, property trading and hotel investment, where the Company has management control. The report includes details of our SD vision and progress on the implementation of our SD 2030 Strategy during the past year.

Profile of Swire Properties Limited

Year of

establishment

1972

Ownership and legal form

Public company listed on the Main Board of the Stock Exchange of Hong Kong (Stock Code: 1972) - Swire Pacific Limited is the immediate holding company and major shareholder

	Core businesses		Number of
Property	Property	Hotel	employees*
Investment	Trading	Investment	5,800+

Aggregate gross floor area ("GFA")

attributable to the Group*

27.3 million sq ft

Underlying profit attributable to

shareholders in 2020

HK$12,679 million

2019 HK$24,130 million

HK$(million)

Underlying profit/(loss) by segment

Total Total

12,679 24,130

25,000

20,000

15,000
							24,218
10,000


		13,290
5,000


0
				(87)	(18)
-5,000			(524)	(70)
2020		2019
	Property		Property			Hotels

	trading		investment

*Data is valid as at 31st December 2020 and has been reproduced from the Swire Properties Annual Report 2020.

SUSTAINABLE DEVELOPMENT REPORT 2020		5

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

About Us

Headquartered in Hong Kong, Swire Properties is a leading developer, owner and operator of mixed-use, principally commercial, properties in Hong Kong and the Chinese mainland, with a presence in Miami, U.S.A. We also have established offices in Singapore, Indonesia and Vietnam.

Creative Transformation captures what we do and how we do it. It underlines the creative mindset, original thinking and long-term approach that enables our employees to reach beyond the conventional and seek new perspectives. We strive to unlock the potential of places by creating vibrant destinations and stimulating further growth to produce sustainable value for our shareholders, our business partners and the people with whom we work.

For further information on our key business strategies, operations, and financial performance, please

refer to theSwire Properties Annual Report 2020.

SD Awards

Continued Global SD Leadership on Sustainability Benchmarks and Indices

Our commitment to SD received further global recognition in 2020. We were ranked highly on several major SD-related benchmarks and indices.

Dow Jones Sustainability World Index ("DJSI World")

2015 2016 2017* 2018* 2019*# 2020*#

*Member of the Dow Jones Sustainability World Index ("DJSI World"), Sole constituent from Hong Kong

#Top 5% Globally

For the fourth year in a row, we were the only constituent company from Hong Kong to be listed on the DJSI World. We ranked in the top 5% of 248 leading real estate developers from around the world.

Global Real Estate Sustainability Benchmark ("GRESB") - Global Sector Leader and Global Development Sector Leader for Mixed Use developments

	2017	2018	2019	2020
	For the fourth year in a row, we retained our Global Sector Leader
2 0 2 0	title in the Mixed Use developments category and were also
	recognised as the Global Development Sector Leader in the new
	Mixed Use developments category. In addition to our five-star
	rating, we were one of the top performers in the Resilience Module,
	scoring 100 out of 100.

SUSTAINABLE DEVELOPMENT REPORT 2020		6

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

Hang Seng Corporate Sustainability Index - Top Company

2015 2016 2017 2018* 2019* 2020*

* Highest total score among constituent companies; "AAA" rating

In Hong Kong, we topped the Hang Seng Corporate Sustainability Index for the third consecutive year, receiving the highest total score among all index constituents, while also maintaining an "AAA" sustainability rating, which is the highest possible grading. We were one of only two companies to receive this rating among more than 530 assessed stocks.

MSCI ESG Leaders	Top 15% of real	MSCI ESG Leaders
Indexes		estate companies	Indexes
			globally
2014	2015	2016	2017 2018 2019	2016 2017 2018
2017	2018* 2019*	2020 2021	2019 2020
2020*

*Environmental, Social and Governance rating of "AAA" - the highest possible rating

1 Disclaimer:www.swireproperties.com/sd/awards/mscidisclaimer.html

SUSTAINABLE DEVELOPMENT REPORT 2020		7

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

ASHRAE Technology Awards

The ASHRAE Technology Awards recognise, on an international scale, successful applications of innovative design, which incorporate effective energy management, indoor air quality, and good mechanical design. For this award, Swire Properties was named the First Place Winner in the Commercial Buildings - Existing Building Commissioning (EBCx) category.

HKICPA Best Corporate Governance Awards

For the second consecutive year, our SD Report was named Winner in the Sustainability and Social Responsibility Reporting Award category, which is part of the Hong Kong Institute of Certified Public Accountants' (HKICPA) Best Corporate Governance Awards.

SUSTAINABLE DEVELOPMENT REPORT 2020		8

SD 2030

Strategy

For almost 50 years, we have adopted, advocated and adhered to a philosophy of responsible development.

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

SD 2030 Strategy

For almost 50 years, we have adopted, advocated and adhered to a philosophy of responsible development.

We are committed to operating in an environmentally, socially and economically responsible manner across all aspects of our business.

We introduced our SD vision in 2016 to clearly articulate our direction:

To be the leading sustainable development performer in our industry globally by 2030

In the same year, we formulated our SD 2030 Strategy to implement our SD vision. This strategy helps us build our SD capability and ensures that SD considerations are part of all of our operations and business decisions.

Our SD 2030 Strategy is built on five strategic pillars: Places, People, Partners, Performance (Environment) and Performance (Economic) (together, "the Pillars" and each a "Pillar").

Our SD 2030 Strategy is premised on a creative mindset of innovation and experimentation, promoted through communication and engagement.

HKEX

Mandatory

Disclosure

Requirement

SUSTAINABLE DEVELOPMENT REPORT 2020		10

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

Places are at the heart of, and central to, the achievement of our SD 2030 Strategy.

	Through effective placemaking and long-term placekeeping, we aim to continue to
Places	transform the places in which we invest so as to create value, whilst retaining their
character, supporting communities and enhancing people's lives.

Focus areas for Places:




Vibrancy	Livelihood	Wellbeing	Resilience

The contributions of our employees are critical to our success.

	We aim to create an environment where our employees will be healthier, happier
People	and more productive, invest in our employees and provide rewarding career paths
so as to develop a diverse and industry-leading team.

Focus areas for People:

Talent Attraction	Talent Retention	Safety, Health and	Diversity and	Volunteering
	Wellbeing	Inclusion

Our business partners play a critical part in the success of our SD 2030 Strategy.

	We aim to continue to develop long-term, mutually beneficial relationships with our
Partners	business partners and other key parties so as to improve our environmental, social
and economic performance.

Focus areas for Partners:

Residential Owners

Suppliers

Tenants

Customers

Government

and Occupiers

Non-governmental,		Joint Venture
Non-profit		Partners
Organisations
("NGOs")

SUSTAINABLE DEVELOPMENT REPORT 2020		11

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

Performance

(Environment)

As a leading property developer, we are committed to building and managing our developments sustainably.

We aim to continue to design, construct and manage high quality developments that contribute positively to the communities in which we operate and the environment.

Focus areas for Performance (Environment):

Climate Change

Energy

Resource and

Water

Biodiversity

Circularity

Occupant Building/Asset

WellbeingInvestments

Performance

(Economic)

We believe that long-term value creation depends on the sustainable development of our business.

We aim to deliver sustainable economic performance coupled with good corporate governance and high ethical standards.

Focus areas for Performance (Economic):

Financial	Green Financing	Corporate	Risk Management	Disclosure and
Performance		Governance		Reporting

Investor Relations

SUSTAINABLE DEVELOPMENT REPORT 2020		12

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

SUSTAINABLE DEVELOPMENT (SD) 2030 STRATEGY: 2020 HIGHLIGHTS

Performance (Economic)

We aim to deliver sustainable economic performance coupled with good corporate governance and high ethical standards.

Financial Performance

2020 KPI	2020 Progress
Long-term sustainable	HK$12,679
growth in shareholder	million underlying
value	profit attributable to
	shareholders

Green Financing

People

We aim to create an environment where our employees will be healthier, happier and more productive, to invest in our employees and to provide rewarding career paths so as to develop a diverse and industry-leading team.

Talent Attraction

2020 Progress

Named Most Attractive Employer in Hong

Kong by Randstad Employer Brand Research 2020

Talent Retention

2020 Progress

>126,000 training hours delivered

Our SD Vision:

"To be the leading sustainable development performer in our industry globally by 2030."

To achieve this vision, we have formulated our SD 2030

Strategy, which is built on five strategic pillars and embraces the spirit of Creative Transformation. It is underpinned by our creative mindset of innovation and experimentation, and promoted through communication and engagement.

Partners

We aim to continue to develop long-term, mutually beneficial relationships with our business partners and other key parties so as to improve our environmental, social and economic performance.

	Suppliers
2020 KPI	2020 Progress
Develop programmes	Organised our first
for supply chain	sustainability
improvements	engagement events
	for suppliers and business
	partners in Hong Kong and
	the Chinese mainland

Performance (Environment)

We aim to continue to design, construct and manage high quality developments that contribute positively to the communities in which we operate and the environment.

Climate Change

2020 KPI	2020 Progress
Carbon intensity3
Hong Kong Portfolio4	Hong Kong Portfolio4
		27%	44.1%


Chinese Mainland	Chinese Mainland
Portfolio4	Portfolio4
		21%	42.2%

2020 KPI

Review, develop and issue green bond

2020 Progress

Issued four green bonds totalling HK$1,934 million and secured a

five-year HK$1 billion

green loan facility

~30% of current bond and loan facilities are from green financing

20 training hours/employee/year

Safety, Health and Wellbeing

2020 KPI	2020 Progress
Maintain Lost Time Injury	LTIR: 1.25
Rate ("LTIR") below 2.0

Diversity and Inclusion ("D&I")
2020 KPI	2020 Progress

Future Targets

We have achieved most of the 80 targets set for 2020. As we advance to 2030, we have set new targets for 2025 and 2030. Please refer to our Sustainable Development Report 2020 for further details.

HK$1,196 million of Sustainable Procurement spent2

Developed low carbon specifications for

building materials for Hong Kong projects under development

Tenants

Recognised 27 F&B tenants in Hong Kong and the

Achieved procurement of 100% renewable electricity at Sino-Ocean Taikoo Li Chengdu

Continued to publish climate-relatedfinancial disclosuresas per TCFD5 recommendations

	Energy
2020 KPI	2020 Progress
Energy consumption6
Hong Kong Portfolio7	Hong Kong Portfolio7

Disclosure and Reporting

2020 KPI

Disclose SD information in accordance with the requirements of relevant major global sustainability benchmarks

2020 Progress

Swire Properties is listed on these major global and local sustainability indices

2 0 2 0

Top 5% globally in real estate

industry; Member of the Global Sector Leader World Index

Public disclosure of data on Gender pay ratio (female gender, age, job level, pay, to male): 1 to 1.05 and ethnicity

Women hold 51% of management positions

Volunteering

2020 Progress

Community Ambassador Programme contributed >2,000 volunteer service hours, supporting

43 activities

Places

Through effective placemaking and long-term placekeeping, we aim to continue to transform the places in which we invest so as to create value,

whilst retaining their character, supporting communities and enhancing people's lives.

Impact Reporting

Chinese mainland with Green Kitchen Awards

million kWh potential annual energy savings from free energy audits for Hong Kong and Chinese mainland tenants (since 2008)

Updated the Green Pledge, renaming it the

Green Performance Pledge, to continue

working with tenants to jointly improve environmental performance

			64 million kWh/year		77.8 million kWh/year


		26%		31.3%


Chinese Mainland	Chinese Mainland
Portfolio4	Portfolio4
			23 million kWh/year		28.1 million kWh/year


		20%		23.4%



			Resource and Circularity
2020 KPI	2020 Progress
Commercial waste	Hong Kong Portfolio9
diversion rate8	25.0%
25%	Chinese Mainland

Portfolio9

34.6%

Building/Asset Investment

No.1 for 3rd consecutive	"AAA" rating
year; "AAA" rating

Published our first Places Impact Reporton Island Esat and TaiKoo Place

Developed a methodology for assessing, measuring and reporting on the impacts of our developments

2020 KPI

Target the highest environmental building assessment scheme10 rating for all projects under development11

2020 Progress

100% of projects under development achieved the highest ratings

97%ofallexistingbuildings12 arecertifiedgreenbuildings, ofwhich85%achievedthe highestratings

Disclaimer: www.swireproperties.com/sd/awards/mscidisclaimer.html

Products that meet specific sustainability criteria such as green certification or accreditation by reputable, independent third parties.

Carbon intensity reduction targets reference the business-as-usual ("BAU") baseline year of 2008 for our Hong Kong portfolio and the first BAU baseline year for which a complete calendar year of data was available for projects in our Chinese mainland portfolio.

Hong Kong portfolio and Chinese mainland portfolio refer to our office and retail portfolios in Hong Kong and the Chinese mainland respectively, excluding hotels.

5	Task Force on Climate-related Financial Disclosures.	8	For Chinese mainland portfolio, this figure refers to the commercial waste recycling rate.
6	Energy consumption refers to purchased electricity for the provision of shared services for and in the common parts of our buildings, with reference	9	Hong Kong portfolio and Chinese mainland portfolio refer to our office and retail portfolios and hotels in Hong Kong and Chinese mainland respectively.
	to the BAU baseline year of 2008 for our Hong Kong portfolio and the first BAU baseline year for which a complete calendar year of data was available	10	BEAM Plus/LEED/China Green Building Design Label/WELL certification.
	for projects in our Chinese mainland portfolio.	11	Projects under development refers to projects that are under construction or at the pre-certification stage. This includes non-joint venture projects only.
7	Hong Kong portfolio refers to our office and retail portfolios and hotels in Hong Kong.	12	Measured as the percentage of total gross floor area.

SUSTAINABLE DEVELOPMENT REPORT 2020		13

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

UN SDGs

We support theUnited Nations Sustainable Development Goals("SDGs"), which aim to end poverty, protect the planet and ensure that all people enjoy peace and prosperity by 2030.

We believe that ten SDGs connect closely with our SD vision and SD 2030 Strategy. These ten SDGs are relevant to the focus areas under one

or more of the Pillars listed below. Our progress made against these SDGs in 2020 can be found in the corresponding Pillar sections of this report.

Places

We create long-term value by transforming places into vibrant and sustainable communities. Places aligns with:

SDG 8

Promoting sustainable economic growth, employment and decent work for all.

SDG 9

Building resilient infrastructure, promoting inclusive and sustainable industrialisation and fostering innovation.

SDG 11

Making cities and human settlements inclusive, safe, resilient and sustainable.

People

We invest in our employees and create an environment where they are healthier, happier and more productive. People aligns with:

SDG 3

Ensuring healthy lives and promoting wellbeing.

SDG 5

Achieving gender equality and empowering women and girls.

Partners

Our business partners play a critical part in the success of our SD 2030 Strategy. Partners aligns with:

SDG 12

Ensuring sustainable consumption and production patterns.

SDG 17

Strengthening partnerships for sustainable development.

SUSTAINABLE DEVELOPMENT REPORT 2020		14

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

Performance (Environment)

We design, construct and manage high quality developments that contribute positively to communities and the environment. Performance (Environment) aligns with:

SDG 3

Ensuring healthy lives and promoting wellbeing.

SDG 6

Ensuring availability and sustainable water management.

SDG 7

Ensuring access to reliable and sustainable energy.

SDG 11

Making cities and human settlements inclusive, safe, resilient and sustainable.

SDG 12

Ensuring sustainable consumption and production patterns.

SDG 13

Taking urgent action to combat climate change and its impacts.

Performance (Economic)

We believe that long-term value creation depends on the sustainable development of our business. Performance (Economic) aligns with:

SDG 8

Promoting sustainable economic growth, employment and decent work for all.

SDG 17

Strengthening partnerships for sustainable development.

SUSTAINABLE DEVELOPMENT REPORT 2020		15

Performance (Economics)

Performance

(Environment)

Commmunication

& Engagement

Committee

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

SD Governance

SD Governance Structure

Our SD governance framework builds on our strong foundations of good corporate governanceand high ethical standards.

Our SD 2030 Strategy seeks to reinforce these foundations by integrating economic, social, and environmental considerations into all levels of our business decision making processes.

GRI

102-18,102-19,

102-20,102-32

HKEX

Mandatory

Disclosure

Requirement

Board of Directors

Our Board of Directors ("the Board") is actively engaged in formulating and implementing our SD 2030 Strategy. The Board oversees SD issues, with material SD issues and the progress of the 2020 key performance indicators ("KPIs") reported to it by the Sustainable Development Steering Committee ("SD Steering Committee") and discussed at our quarterly board meetings.

Board of Directors

SD Steering Committee

Places People Partners

The Board provides oversight of our risk management framework and our SD risks,

including climate-related risks. Material SD issues are reported and discussed at quarterly board meetings. We also conduct regular risk

identification, analysis and review management processes throughout the year through the Audit Committee and our Enterprise Risk Management ("ERM") System, including our Corporate Risk Register.

SD Steering Committee

Our SD Steering Committee is chaired by the Chief Executive. Other members are the Finance Director and five members of our senior management from the development and valuations, human resources and administration, portfolio management, and technical services and sustainable development departments.

The Chairman of the SD Steering Committee reports relevant SD matters to the Board, as appropriate.

In accordance with its terms of reference, the SD Steering Committee is responsible for reviewing the Company's SD 2030 Strategy and ensuring that the Company's operations and practices are carried out in line with the strategy.

The SD Steering Committee reviews the Company's performance in terms of KPIs and SD initiatives that have been recommended by the SD working groups which report to the SD Steering Committee on a regular basis.

SUSTAINABLE DEVELOPMENT REPORT 2020		16

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

SD Working Groups

Each Pillar is supported by a working group. In 2020, these SD working groups delivered on KPIs for 2020 ("2020 KPIs") for each Pillar and set KPIs for 2025 and 2030. Read more about our 2025 and 2030 KPIs here.

The members of each SD working group are carefully selected to ensure that employees with different backgrounds, types of expertise and varying levels of seniority and work experience are included.

Communication and Engagement Committee

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. It is chaired by our Director, Marketing, Communications and Digital. This Committee also includes representatives from different functions within the Company. Read more about what this Committee accomplished in 2020 here.

Sustainable Development Policy

Our Sustainable Development Policy("SD Policy") was first published in 2008 and has guided the Company's operations for more than a decade. It reflects our belief that long-term value creation depends on the sustainable development of our business, our supply chain and the communities in which we operate. These factors are always considered during the inception, design, construction, occupation, and demolition phases of our development projects.

The SD Policy explicitly states that the Company will be a good steward of the natural resources and biodiversity within our influence and that we will ensure that all potentially adverse impacts of our operations are identified and managed appropriately.

With respect to the environment, our approach follows the precautionary principle2 which states, "Where there are threats of serious or irreversible damage, lack of full scientific certainty shall not be used as a reason for postponing cost-effective measures to prevent environmental degradation".

We strive to operate in a manner that safeguards the health and safety of all of the people with whom we work. We also strive to be an employer of choice by providing a working environment in which all employees are treated fairly and with respect so that they can realise their full potential.

GRI

102-11

2 The precautionary approach is referred to in Principle 15 of The Rio Declaration on Environment and Development.

SUSTAINABLE DEVELOPMENT REPORT 2020		17

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

Swire Properties' Policies

Our SD Policy is supported by the following related policies that focus on specific environmental and social impacts:

Biodiversity	Board Diversity	Climate Change	Corporate Code of
Policy	Policy	Policy	Conduct

Diversity and	Energy	Environmental	Health and Safety
Inclusion Policy	Policy	Policy	Policy

Supplier Code	Waste Management	Water Policy	Whistleblowing
of Conduct	Policy		Policy

SUSTAINABLE DEVELOPMENT REPORT 2020		18

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

Integrating SD into our Business Operations

Employee Engagement

Support from our employees is vital to the success of our SD 2030 Strategy. In 2018, we modified our performance development review system to further engage our employees in our SD Strategy. As a result, our office employees now align their annual performance goals with each Pillar, further engaging them in our SD 2030 Strategy.

Business Integration and Budgeting

In 2020, we continued to implement SD initiatives in our day-to-day operations and decision- making at both the asset and functional levels of all our major business units in Hong Kong and the Chinese mainland.

All our major business units also incorporated SD considerations into their annual budgets and shared proposed budget allocations with the relevant SD working groups.

Corporate Risk Management

Our Corporate Risk Register ("CRR") incorporates SD-related risks, such as climate-related risks, to ensure SD factors are considered when conducting our corporate risk analysis.

In 2020, to validate the findings of the top-down risk identification exercise we completed in 2019, we conducted a risk dimensioning workshop and two virtual risk identification workshops with business unit leaders and department heads in Hong Kong and the Chinese mainland respectively. The major risks of the company were reviewed, validated and ranked during these workshops. A new dashboard format for the Corporate Risk Register was also adopted, facilitating a clearer and more precise presentation of our risk profile.

Green Financing

Swire Properties has launched various green financing mechanisms to fund our green building development and other projects. These include our first green bond, issued in January 2018 and our first sustainability-linked loan, which was obtained in July 2019, the interest rate of which is indexed against improvement in the Company's year-on-year environmental, social and governance ("ESG") performance.

In 2020, our commitment to green financing deepened further, with the issuance of four more green bonds totalling HK$1,934 million. We also converted two existing loans into sustainability-linked loans, secured a HK$1 billion sustainability-linked loan with DBS and our first green loan, a five-year HK$1 billion facility with OCBC Bank.

We also issued our Green Finance Reportin 2020, which provides information on projects funded by the green bonds and their estimated quantitative environmental impacts, including energy and water savings, renewable energy generation and wastewater management impacts.

SUSTAINABLE DEVELOPMENT REPORT 2020		19

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

Communication and Engagement

The successful implementation of our SD 2030 Strategy requires the support of our employees. In light of the restrictions on travel and gatherings caused by the COVID-19 pandemic, this year our communication and engagement efforts were focused on virtual meetings and online communication platforms.

Sustainability We All Count

In July 2020, Swire Properties launched the "Sustainability We All Count" SD-themed communication campaign to raise awareness about our SD efforts and encourage stakeholders to work together to achieve our SD 2030 vision.

The campaign, conducted both offline and on social media channels, highlighted how our SD accomplishments are a collective result of the contributions of all our employees and stakeholders. It encourages our tenants, residents, customers, and the general public to do their part to make our communities more sustainable, and inspires our staff to become SD ambassadors.

One highlight of the campaign was the introduction of characters that personify our SD values and initiatives - over 20 characters which showcase the idea that the concept of "we" also includes a broad range of ideas and actions, not just individual people - these include recycling, the arts, green buildings, and green innovations, to name a few. This on-going campaign also includes animations, offline activations and a mini-websitefeaturing more than 50 SD-related stories.

The initiative kicked off with outdoor large-scale posters put up in Taikoo Place and Three Pacific Place, and the launch of new Swire Properties social media channels to create awareness amongst our stakeholders, including tenants, business partners and contractors. The internal launch saw inanimate objects like photocopiers, refrigerators, lifts, and more being "brought to life" as a light-hearted way to encourage employees to join the campaign.

SUSTAINABLE DEVELOPMENT REPORT 2020		20

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

SPL Rolls Out New Updates to SPLinks Intranet Portal

As part of Swire Properties' efforts to offer a more flexible and modern workplace and encourage communication and collaboration, we launched a new and improved version of SPLinks, our staff intranet portal, in the summer of 2019.

Following the official launch, the Company rolled out updates to the site in 2020, which included user-centric HR leave pages, a new digital site for our CornerStone newsletter, a learning and development hub, and other features such as "like" functions. The 2020 launch also featured

the distribution of SPLinks-branded Bluetooth earphones to all office staff.

As part of the phased roll out, in autumn 2020, Swire Properties launched the SPLinks mobile application ("app"), offering a convenient and personalised mobile experience to office staff and frontline colleagues. In addition to information updates, the app offers access to HR functions, staff offers and Company event listings.

SUSTAINABLE DEVELOPMENT REPORT 2020		21

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

Innovation and Experimentation

A creative mindset of innovation and experimentation is crucial to the successful execution of our SD 2030 Strategy. In 2020, we demonstrated our commitment to innovation and experimentation in several ways.

New Ventures Makes New Investments in Technology

Our new ventures department focuses on technology and innovation. It aims to add strategic value to the Company's operations in two distinct ways - by accelerating technology trials and adoption at Swire Properties; and through actively engaging with and investing in technology companies. The new ventures department works closely with global venture capital firms, technology companies, accelerators, incubators, and other organisations to achieve these goals.

In 2020, the department established a US$50 million corporate venture capital fund to invest in relevant and innovative technology companies. The fund's first investment was made in June 2020 with US$3 million invested in a global property technology accelerator and venture capital fund. These investments will not only produce financial returns but will also connect the Company with best-in-class technology companies and industry partners across the world.

Creating a Cultural Shift with the Innovation Accelerator

The Innovation Accelerator is a new initiative designed to foster a culture of innovation at Swire Properties. The programme has identified 150 Change Agents to help drive change across the Company, and will provide them with training to empower them, platforms to motivate them, and opportunities to collaborate with them. These Change Agents will then become leaders who influence their colleagues in their respective departments, helping to create a Company-wide cultural shift towards innovation.

After identifying the 150 Change Agents earlier in 2020, we launched several training workshops for them beginning in Q4 2020, including a design thinking workshop and a workshop focused on artificial intelligence ("AI"), big data and machine learning, which looked at how to develop AI strategies and eventually create an AI roadmap for the Company.

In 2021, we plan to have these Change Agents complete more training activities and begin working to promote a collaborative culture of innovation within Swire Properties.

SUSTAINABLE DEVELOPMENT REPORT 2020		22

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

Awarding Great Ideas Through ideas@work

ideas@work is an annual programme that promotes and stimulates innovation within the Company. Employees are invited to share their ideas on how to improve operations and productivity, and are rewarded by seeing their ideas come to life.

In 2020, ideas@work received nearly 1,000 entries - the highest since 2014 and more than double the number of ideas received in 2019. Of these, 439 were approved for implementation across our business units.

The theme of this year's ideas@work was "Smarter Process, Better Experience" - aiming to collect ideas that create better value for the Company, place a greater emphasis on efficiency enhancement, and improve the customer experience.

This year's winners were:

Top prize: "AI Forecasting by Machine Learning" - a proposal to build an artificial intelligence prediction model which uses machine learning to produce budgets in a more systematic and scientific manner, hoping to increase accuracy and thereby better support management's strategic decision making;
First runner-up: "Digital Interactive Development Model" - using digital solutions to create a concept gallery and virtual show flats using virtual reality technology to provide a more engaging customer journey; and
Second runner-up: "Tenant Fit-Out Submission Portal" - jointly supported by three retail portfolios in Hong Kong, the project aims to streamline the current tenant fit-out process and provide instant updates and feedback to tenants.

The winners of the two ideas@work Special Mention Awards focused on the shift towards omnichannel retail, with malls having become places for social interaction, rather than solely making transactions. Both of the winning ideas proposed alternative rental models, one being charging rent based on footfall, a new outcome-based metric to capture additional revenue; and the other being providing a reduction in rent in exchange for a percentage of online sales within a specific region.

SUSTAINABLE DEVELOPMENT REPORT 2020		23

Materiality

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

Materiality

For the purposes of our SD 2030 Strategy and SD reporting, materiality is defined as any factor that has a present or future impact on our ability to achieve our SD vision.

We believe that balancing internal and external viewpoints is critical to defining and managing SD issues that are significant to our business and our stakeholders.

HKEX

Mandatory

Disclosure

Requirement

Aspect B8

Our Stakeholder Engagement Approach

Communication and engagement with our employees, investors, tenants, customers, suppliers, regulators, NGOs, community representatives, and many others is an integral part of our daily operations. This is set out in our SD 2030 Strategy.

We regularly engage with our stakeholders to understand their priorities, expectations and perceptions regarding SD issues.

When we first introduced our SD 2030 Strategy in 2016, we engaged extensively with senior managers and employees from across our business and also consulted external sustainability experts. Today, our SD Communication and Engagement Committee continues to gather the support of our employees and other stakeholders so as to further integrate our SD 2030 Strategy across our business.

Our Stakeholders

Our stakeholders are both internal and external interest groups which have a significant impact on our business, or which experience significant impacts from our operations. We regularly engage with these stakeholders in appropriate ways.

Stakeholder Groups and Methods of Engagement

GRI

102-40,102-42,

102-43

Employee Groups

Surveys and interviews
SPLinks intranet and the staff newsletter CornerStone
Training sessions
Competitions and team- building activities
Virtual and in-person forums
Staff townhalls
WeChat Work mobile application

Community/NGOs

Community events
Joint projects
Working committees and consultations
Multi-stakeholdermeetings and seminars on specific issues

Tenants

SD-themedtenant engagement programmes
Joint projects
Community events
Surveys and interviews
Multi-stakeholdermeetings and seminars on specific issues

Customers/Consumers

Surveys
Customer service mobile applications
Community events
Joint projects

SUSTAINABLE DEVELOPMENT REPORT 2020		25

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

Suppliers

Regulators/Government

• Supplier screening and

• Joint projects

assessments

• Working committees and

• Joint projects

consultations

• Surveys

• Interviews

• Forums

Industry Experts/Academia

Joint Venture Partners

• Joint projects/research funds

• Surveys and interviews

• Multi-stakeholder forums and

• Multi-stakeholder meetings/

partnerships

seminars on specific issues

• Seminars

• Joint projects

			Shareholders & Investors				Media
			• SD benchmarks and indices				• Annual gathering

			• Interviews and meetings				• Interviews


			• Newsletters				• Feedback and responses to
			• Events				media enquiries
			• Investor Day

Stakeholder-driven Materiality

In 2020, we initiated a materiality review with the support by an independent consultant, to understand our stakeholders' perceptions of the progress of our SD 2030 Strategy and their evolving expectations and priorities for the future. These perceptions will help us further align our business practices, improve our decision making and accountability, and guide the refinement of our strategy and focus areas in response to the latest local, regional and global developments, as well as the global COVID-19 pandemic.

We also gathered stakeholders' feedback about the pandemic's effects on their businesses, the real estate industry and Swire Properties; this feedback allowed us to develop a proactive, targeted and responsive plan to meet stakeholders' expectations.

We adopted a combined qualitative and quantitative approach to assess materiality, which is outlined below.

Step 1 - Global landscape review and identification of key sustainability megatrends

Action: Conduct research to identify sustainability and real estate-relevant megatrends based on their impact and relevance to Swire Properties.
Outcome: 7 key sustainability megatrends identified as being relevant to Swire Properties.

GRI

102-42,102-44,

102-46,102-47,

103-1

HKEX

Mandatory

Disclosure

Requirement

SUSTAINABLE DEVELOPMENT REPORT 2020		26

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

Step 2 - SD issue identification

• Action:	Identify new and emerging SD issues relevant to the key megatrends against existing
	materiality issues.
• Action:	Consolidate analysis of issues and definitions.

• Outcome: Identify and defined 28 issues.

Step 3a - Qualitative interview

• Action: Interview 23 stakeholders to understand their perceptions of the identified issues and our SD 2030 Strategy.

Outcome: Identify new challenges and opportunities seen as important to stakeholders and Swire Properties.

Step 3b - Quantitative survey

• Action: Survey 547 stakeholders.

Action: External stakeholders rank the 28 issues in order of perceived importance to the environment and society.

• Action: Employees rank the issues in order of perceived impact on our business.

Outcome: Collate answers and feedback from interview and survey responses which represent the views of our tenants, investors, other external stakeholders, and our employees.

Step 4 - Materiality Matrix

• Action: Plot the survey data on a matrix which represents internal and external stakeholder views.

Step 5 - Review and report

The outcome of the materiality review, which comprises the updated list of material SD issues and the materiality matrix, was reported, discussed and endorsed at both the SD Steering Committee meeting and the Board meeting.

The materiality matrix maps 28 SD issues, with their importance to external stakeholders plotted on the y-axis and their importance to our business continuity and development plotted on the x-axis. Overall materiality was determined by the aggregate score assigned to each SD issue by our internal and external stakeholders.

SUSTAINABLE DEVELOPMENT REPORT 2020		27

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

Materiality Matrix

Tier 1 issues	Tier 2 issues	Tier 3 issues
(most critical material issues	(important material issues	(relatively less important
with highest potential impact	with high potential impact on	material issues, perceived by
on business success)	business success)	stakeholders, that can impact
		business success)

Importance to stakeholders

						Green Building Construction
						& Renovation
							1
				Decarbonisation		3	Energy Efficency
			Climate Adaptation & Resilience	9

					10	Community				2 Technology &
				Resource & Circularity 13	Investment &	4	Tenant & Customer
				Innovation
			Visitor/Occupant Health & Wellbeing	Engagement		Engagement

			6 5	Contribute to Local Economic Development
				Renewable Energy 16	14
				1729		7 Local Revitalization
				Responsible Supply
			Indoor Air Quality	Chain Management		8	Corporate Goverance
			20
						12	11 Employee Wellbeing
				Social Inclusion
						Stakeholder
								Talent Attraction,
			Occupatinoal Health & Safety		Engagement &	15
						Collaboration		Retention &
			Diversity & Equal Opportunities		19 Risk Management		Development

									18
			Labour Practices	Cyber Security &				Long Term Financial
Biodiversity	& Human Rights	Data Governance				Performance & Value
Water Conservation

Bribery & Corruption

Importance to business continuity and development

Places

People

Partners

Performance (Environment)

Performance (Economic)

All pillars of SD 2030

Remarks: Tier 1 and Tier 2 issues are numbered in this matrix

The top material issues in the matrix, namely Tier 1 and Tier 2 issues, are consistent with the focus areas of our SD 2030 Strategy and have been addressed in this report in accordance with the relevant Global Reporting Initiative Standards ("GRI Standards").

SUSTAINABLE DEVELOPMENT REPORT 2020		28

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

Top Material Issues

Material Issues

SD 2030

GRI Standards

Impacts and Boundaries

Focus Areas

Employee Groups Community/NGOs Suppliers

Tenants Consumers/Customers Regulators/Government Joint Venture Partners Ind. Experts/Academia Shareholders/Investors Media

Green building

Building/Assets

GRI 417 Marketing and Labelling (2016)

construction &

and Investments

renovation

Technology &

Integral to

N/A

innovation

multiple focus

areas

Energy efficiency

Energy

GRI 302 Energy (2016)

Tenant & customer

Customersand

N/A

engagement

Tenants

Local economic

Livelihood

GRI 203 Indirect Economic Impacts (2016)

development

Community

Resilience

GRI 413 Local Communities (2016)

investment &

engagement

Local revitalisation

Vibrancy

GRI 203 Indirect Economic Impacts (2016)

Corporate

GRI 205 Anti-corruption (2016)

governance

Governance

Climate adaptation

Climate Change

GRI 201 Economic Performance (2016)

& resilience

GRI 305 Emissions (2016)

Decarbonisation

Climate Change

GRI 305 Emissions (2016)

Employee

Safety, Health

GRI 403 Occupational Health & Safety

wellbeing

and Wellbeing

(2018)

Stakeholder

Integral to

N/A

engagement &

multiple focus

collaboration

areas

Resource &

Resource and

GRI 306 Waste (2020)

circularity

Circularity

Visitor/occupant

Occupant

GRI 416 Customer Health and Safety

health & wellbeing

Wellbeing

(2016)

Talent attraction,

Talent Attraction

GRI 401 Employment (2016)

retention &

and Talent

GRI 404 Training and Education (2016)

development

Retention

GRI 405 Diversity and Equal Opportunity

(2016)

Renewable energy

Energy

GRI 302 Energy (2016)

Responsible supply

Suppliers

GRI 301 Materials (2016)

chain management

GRI 308 Supplier Environmental

Assessment (2016)

GRI 414 Supplier Social Assessment (2016)

Long-term financial

Financial

GRI 201 Economic Performance (2016)

performance &

Performance

value

Risk management

Risk

GRI 201 Economic Performance (2016)

Management

Indoor air quality

Occupant

GRI 416 Customer Health and Safety

Wellbeing

(2016)

Places

People

Partners

Performance (Environment)

Performance (Economic)

All pillars of SD 2030

SUSTAINABLE DEVELOPMENT REPORT 2020		29

SD in Action:

INDIGO

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

SD in Action: INDIGO

The first mixed-use development in the world to receive Final Platinum LEED Existing Buildings: Operations and Maintenance Version 4.1 certification, INDIGO is a 1.89 million sq ft retail-led complex located in Beijing's Chaoyang District. Opened in 2012, INDIGO was a joint venture between Swire Properties Limited and Sino-Ocean Group Holding Limited.

Comprised of a shopping mall with over 170 shops, a 25-storeyGrade-A office tower called ONE INDIGO and a 369-room business hotel - EAST Beijing, INDIGO has a sustainable management ethos, and features contemporary architecture, innovative green features and quality public spaces.

In December 2020, Swire Properties announced that we will collaborate with our long-term partner, Sino-Ocean Group, to develop Phase Two of INDIGO. To be located adjacent to the existing complex, Phase Two will be an office-led, mixed- use extension comprised of a shopping mall, office towers and a hotel with an expected total GFA of approximately 393,550 sqm.

Portfolio Highlights:

Low-carbon operations

Over 11,000 sq ft of solar panels generate 200,000 kWh of renewable energy annually
52m long LED mesh video display, capable of high definition video and holographic projection with a low energy footprint

Liveability

Over 53,000 sq ft of green space surrounding the complex
Comprehensive measures to improve indoor air quality - from the selection of building materials to continuous air quality measurements during day-to-day operations

Green mobility

Connected to Line 14 of the Beijing Subway and more than 20 bus routes
More than 1,000 bicycle parking spaces
Priority parking for electric vehicles and carpool vehicles

SUSTAINABLE DEVELOPMENT REPORT 2020		31

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

INDIGO Highlight Stories

Click to explore INDIGO's global-leading SD features

The Winter Garden: A	Rooftop	Sustainability Leads at	Engaging Food and	Solar Panels	Recycling Reigns
Stunning Space Between	Farming and	Swire Properties' New	Beverage Tenants in	Generate Power	in the Renovated
Indoors and Outdoors	Gardening	INDIGO Office	Green Initiatives	for the Complex	Refuse Room

The Winter Garden: A Stunning Space Between Indoors and

Outdoors

INDIGO's 26,000 sq ft Winter Garden features an organically styled sweeping glass rooftop that floods the interior with natural light, providing a gradual transition between the mall and the open park beyond. Home to a wide variety of restaurants and frequent exhibits and events, the Winter Garden is a popular lifestyle destination.

Highlights

Fine porous glass panels on the roof and skylight provide thermal insulation and create unique shading patterns
52m x 9m LED mesh video display that is highly transparent to preserve natural lighting and views, but that also provides video effects, including holographic projection
Space for events like 2018's award-winning "Neighbourhood Earth" space-themed exhibit and this year's "A Magic Harry Potter Holiday", which saw experts create artistic interpretations of several locations from the iconic film series

SUSTAINABLE DEVELOPMENT REPORT 2020		32

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

INDIGO Highlight Stories

Click to explore INDIGO's global-leading SD features

The Winter Garden: A	Rooftop	Sustainability Leads at	Engaging Food and	Solar Panels	Recycling Reigns
Stunning Space Between	Farming and	Swire Properties' New	Beverage Tenants in	Generate Power	in the Renovated
Indoors and Outdoors	Gardening	INDIGO Office	Green Initiatives	for the Complex	Refuse Room

Rooftop Farming and Gardening

The Domain Restaurant at EAST Beijing composts fruit and vegetable peel and pulp to create fertilizes. Management hopes that the garden will become an ecological community where people can re-establish their connection with the land and create a lively community.

Opened in 2018, the INDIGO Roof Garden is a place where staff and office tenants can plant and harvest vegetables and flowers. The 3,200 sq ft garden has 30 separate plots and incorporates numerous eco- friendly elements, like a composting box and automatic irrigation system as well as an "insect hotel" in the vegetable garden, which has become an important part of the garden's ecology.

SUSTAINABLE DEVELOPMENT REPORT 2020		33

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

INDIGO Highlight Stories

Click to explore INDIGO's global-leading SD features

The Winter Garden: A	Rooftop	Sustainability Leads	Engaging Food and	Solar Panels	Recycling Reigns
Stunning Space Between	Farming and	at Swire Properties'	Beverage Tenants in	Generate Power	in the Renovated
Indoors and Outdoors	Gardening	New INDIGO Office	Green Initiatives	for the Complex	Refuse Room

Sustainability Leads at Swire Properties' New INDIGO Office

This year, Swire Properties' Beijing office at INDIGO re-opened in a new space. This is our most sustainable office to date, and we are aiming for WELL and LEED certifications. The 20,000 sq ft space was designed and built after obtaining extensive feedback from colleagues at all levels, with the design based on five pillars: wellness, collaboration and innovation, openness and equity, sustainability, and technology. Using Internet of Things-driven occupancy sensors, data was collected on office usage in our previous office, which was then used to optimise the utilisation of space and determine the layout and design of the new office. The goals were to improve efficiency and productivity while keeping staff wellbeing as a top priority.

Highlights

Activity-basedworking allows staff to choose from multiple in-office work stations instead of having a fixed desk
Shared private offices and desks drive overall efficiency, with total area and total monthly utility charges reduced by 20%
Meeting rooms were built to match typical meeting sizes and can easily be converted from a brainstorming space into an exercise area or yoga studio
Focus booths allow for private or small-scale videoconferences

SUSTAINABLE DEVELOPMENT REPORT 2020		34

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

INDIGO Highlight Stories

Click to explore INDIGO's global-leading SD features

The Winter Garden: A	Rooftop	Sustainability Leads at	Engaging Food and	Solar Panels	Recycling Reigns
Stunning Space Between	Farming and	Swire Properties' New	Beverage Tenants in	Generate Power	in the Renovated
Indoors and Outdoors	Gardening	INDIGO Office	Green Initiatives	for the Complex	Refuse Room

Engaging Food and Beverage Tenants in Green Initiatives

Our Green Kitchen Initiativeallows portfolio management teams and tenants to discuss sustainability before fit-outand renovation projects. We give tenants technical guidelines to help design green kitchens and then run them in a resource efficient way. This initiative is flourishing at INDIGO, with 10 restaurants having received the Green Kitchen Award to date. Our food and beverage tenants also benefit from our free energy audit programme, which helps them identify energy-savingopportunities.

SUSTAINABLE DEVELOPMENT REPORT 2020		35

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

INDIGO Highlight Stories

Click to explore INDIGO's global-leading SD features

The Winter Garden: A	Rooftop	Sustainability Leads at	Engaging Food and	Solar Panels	Recycling Reigns
Stunning Space Between	Farming and	Swire Properties' New	Beverage Tenants in	Generate Power	in the Renovated
Indoors and Outdoors	Gardening	INDIGO Office	Green Initiatives	for the Complex	Refuse Room

Solar Panels Generate Power for the Complex

In 2016, solar PV panels were installed on the roof of both INDIGO and ONE INDIGO, with additional high-efficiency panels installed in 2019. These panels also have material on their undersides that absorbs energy from scattered and reflected sunlight, resulting in higher power generation efficiency. In 2020, 200,000 kWh of renewable energy was generated from these panels. Read more about INDIGO's energy saving strategies.

SUSTAINABLE DEVELOPMENT REPORT 2020		36

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

INDIGO Highlight Stories

Click to explore INDIGO's global-leading SD features

The Winter Garden: A	Rooftop	Sustainability Leads at	Engaging Food and	Solar Panels	Recycling Reigns
Stunning Space Between	Farming and	Swire Properties' New	Beverage Tenants in	Generate Power	in the Renovated
Indoors and Outdoors	Gardening	INDIGO Office	Green Initiatives	for the Complex	Refuse Room

Recycling Reigns in the Renovated Refuse Room

To comply with new Beijing city trash separation rules which came into effect on 1 May 2020, INDIGO's newly renovated smart refuse room now sorts waste into four categories: kitchen, recyclable, hazardous and other waste, allowing us to collect valuable resources for recycling or further waste treatment.

Highlights

Smart refuse room captures tenant-level waste data
Automatic weighing and data recording (including the time, type of waste and weight) for individual tenants
Rotary drum compresses waste to less than two-thirds of its original volume
INDIGO Management Office and each tenant can access an app to view waste data and patterns
EAST Beijing ran a "sorting competition" to prepare staff and test their knowledge of how to separate different kinds of garbage
INDIGO's recycling performance rate is now at 19.6%

SUSTAINABLE DEVELOPMENT REPORT 2020		37

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

Five Pillars

INDIGO is an excellent example of how each of the five pillars of Swire Properties' SD 2030 Strategy work in harmony to create sustainable places.

Places	People	Partners	Performance	Performance
(Environment)	(Economic)

Places

INDIGO connects and engages those who shop, stay and work there, while also supporting and creating real value for the surrounding community.

INDIGO Blooms for its Eighth Anniversary

2020 marked INDIGO's eight-year anniversary, and the celebrations focused on thanking and rewarding our loyal tenants and customers through entertainment, art installations and the opening of several new stores. The "Keep Blooming" campaign saw a "magical garden" installed in the mall, along with a colourful flower- inspired art installation by illustrator and designer Kim Sielbeck.

The mall's live streaming events and the INDIGO Online Mall, a mini-programme hosted on a social media platform, helped boost digital interaction with shoppers by promoting new products or offering a range of rewards.

During the campaign, restaurants also teamed up to fight food waste. Diners who wasted no food at restaurants recognised by our Green Kitchen Awards saved RMB50 off their meals. This campaign also included a charity bazaar, a concert for office workers during their lunch break, and a harvest festival held at the rooftop farm.

SUSTAINABLE DEVELOPMENT REPORT 2020		38

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

Five Pillars

INDIGO is an excellent example of how each of the five pillars of Swire Properties' SD 2030 Strategy work in harmony to create sustainable places.

Places

People

Partners

Performance

(Environment)

(Economic)

Celebrating Culture and the Arts with the Beijing Music Festival

For years, INDIGO has partnered with the Beijing Music Festival to bring the delights of classical music and opera to the public. From performances by international orchestras, to operas performed entirely by children, to partnerships between professional musicians and budding young musicians, the BMF has helped the sound of music resonate throughout INDIGO for years.

2020: The "Music at Noon" BMF Lunch Time Concert Series hosted two lunchtime piano concerts by young pianist Sun Jaya. Held in the ONE INDIGO lobby, the concerts were broadcast live on the Internet and in a radio programme.
2019: Presented Tales of Hoffmann by Jacques Offenbach, a re-imagined opera created and performed entirely by children, staged in the Winter Garden.
2018: Three "Hello! Mozart" concerts presented in partnership with artists from the Magic Circle Mime company and the Beijing Musical College's Middle School Orchestra.
2017: INDIGO hosted the BMF's Weekend Family Day, featuring a performance by the Hong Kong Philharmonic Orchestra Brass Ensemble at the Winter Garden, along with student musicians from Jiuxianqiao Second Primary School.

SUSTAINABLE DEVELOPMENT REPORT 2020		39

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

Five Pillars

INDIGO is an excellent example of how each of the five pillars of Swire Properties' SD 2030 Strategy work in harmony to create sustainable places.

Places

People

Partners

Performance

(Environment)

(Economic)

People

Our people enable us to grow and succeed. By investing in their learning and development as well as their health and wellbeing, we ensure they are best placed to help INDIGO thrive.

New Office Prioritises Staff Health and Wellness

The new Swire Properties office at ONE INDIGO was designed specifically to nurture the health, wellness and comfort of our staff, while also optimising sustainability and efficiency. Extensive consultations were conducted with staff, along with analysis of data from the old office, to ensure an optimal space. Features of the office include:

The selection of locally-sourced,low-volatile organic compound ("VOC") materials that were matched with natural, biophilic colours - scientifically proven to improve performance;
Improving work flexibility by moving to laptops instead of desktop computers;
A meditation and mothering room;
Smart lighting that adapts to daylight hours and human circadian rhythms;
Air purification devices that ensure minimal levels of pollution; and
Height-adjustabledesks and monitor arms and ergonomic furniture to enable comfortable working.

SUSTAINABLE DEVELOPMENT REPORT 2020		40

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

Five Pillars

INDIGO is an excellent example of how each of the five pillars of Swire Properties' SD 2030 Strategy work in harmony to create sustainable places.

Places

People

Partners

Performance

(Environment)

(Economic)

Sustaining our Community Ambassador Activities

The Swire Properties Community Ambassador Programme is thriving at INDIGO. For the past eight years, there have always been plenty of community outreach activities between INDIGO staff and the surrounding community, and this goodwill has continued until the present. From working with NGOs, schools and community organisations on environmental awareness campaigns, to collaborating with social welfare organisations, INDIGO's Community Ambassadors have been very active.

Though the 2020 pandemic curtailed many in-person activities, INDIGO staff still made positive contributions through:

As part of Sustainability We All Count, children from the community participated in Zero Waste Day in August 2020. The activities included learning about waste management and designing a reusable tote bag, hoping to spread the message of mindful consumption among more people.
Continuing the Little Flower Project, which benefits premature infant orphans and orphans with complex medical needs. Since 2018, INDIGO volunteers have visited these children, kept them company and donated items that they needed. While face-to-face visits were not possible in 2020 due to the COVID-19 pandemic, we hope to resume these important in-person visits soon.
Launching the "Sustain the Beauty of Life" campaign, aiming to involve more people in community service. Several events were carried out, including releasing an "empty plate" coupon to reduce food waste, the Roundabout charity bazaar, Beijing Music Festival concerts, and senior care events.

SUSTAINABLE DEVELOPMENT REPORT 2020		41

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

Five Pillars

INDIGO is an excellent example of how each of the five pillars of Swire Properties' SD 2030 Strategy work in harmony to create sustainable places.

Places

People

Partners

Performance

(Environment)

(Economic)

A Tenacious Focus on Safety

INDIGO views occupational safety as a cornerstone of SD, meaning safety has always been paramount at INDIGO. Regular safety training sessions are conducted, along with a monthly staff safety meeting and tenant safety training programmes.

Highlights

2020 was the third consecutive year that we promoted the "INDIGO Safety Management Award" among our retail tenants.
In 2019, INDIGO was recognised for workplace safety with the Swire Properties internal Zero Lost-Time Injury Silver Award, marking 500 days straight with no loss of work time due to injuries.
Also in 2019, INDIGO received the "Advanced Unit of Fire Fighting Work" award for Chaoyang District.
In 2017, INDIGO was recognised as a "Company Advanced in Safety Operation and Management" by the Chaoyang District Association of Work Safety.

SUSTAINABLE DEVELOPMENT REPORT 2020		42

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

Five Pillars

INDIGO is an excellent example of how each of the five pillars of Swire Properties' SD 2030 Strategy work in harmony to create sustainable places.

Places	People	Partners	Performance	Performance
(Environment)	(Economic)

Partners

Swire Properties believes in cultivating trust and long-term, mutually beneficial relationships with all our stakeholders. INDIGO's many partners form a strong and tightly-knit community within the development and the wider local community.

INDIGO X Roundabout Craft Bazaar

In 2020, INDIGO once again cooperated with Roundabout, a Beijing-based social enterprise that connects donors with people in need. The mall hosted their annual two-day charity bazaar to raise funds for children with leukaemia. More than 40 artisans participated, while children from the community were invited to take part in arts and craft classes. Employees from the ONE INDIGO office building also joined in by donating goods to the bazaar to be sold. The event was a success, with over 2,000 people visiting the bazaar and raising nearly RMB20,000 for children with leukaemia.

Launch of the INDIGO Sustainable Development Centre

This year INDIGO developed an innovative SD Centre within the mall - a space devoted to increasing environmental awareness among all our partners: tenants, office staff and the wider community. The Centre is comprised of three parts: a history wall showcasing INDIGO's SD history and initiatives, a material wall with detailed information on waste sorting and the recycling process, and co-create wall, which contains an art piece made from repurposed waste.

SUSTAINABLE DEVELOPMENT REPORT 2020		43

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

Five Pillars

INDIGO is an excellent example of how each of the five pillars of Swire Properties' SD 2030 Strategy work in harmony to create sustainable places.

Places

People

Partners

Performance

(Environment)

(Economic)

Performance (Environment)

INDIGO's environmental monitoring system uses smart technology and data analysis to continuously enhance building performance, increase energy savings and work towards continuous improvements.

Enhancing our Energy Saving Strategies

Since its opening, INDIGO has been a leading light for energy efficiency - locally, regionally and globally. We have a long-term partnership with Tsinghua University through the Joint Research Centre for Building Energy Efficiency and Sustainability, where we develop and test new methods for increasing energy efficiency and improving environmental performance in our projects. Between 2013 and 2018, consumption of natural gas at this property decreased by nearly 50%, from 1.54 million m3 during the winter of 2012/13 to 0.77 million m3 during the winter of 2017/18.

In 2018, our work with Tsinghua University to improve the environmental performance of INDIGO was featured in the 2018 Annual Report on China Building Energy Efficiency. INDIGO was the only commercial complex to be identified as one of the six "best practice" case studies in the report for its continuous adoption of energy efficiency improvements and low consumption of energy for heating.

Today, from energy efficient lighting to insulation, to optimised lifts and escalators, INDIGO's management team continues to create efficiencies and energy savings at every level, including:

A pilot cloud-based smart energy management platform which monitors and optimises energy efficiency using artificial intelligence;
Retrofit of chiller plant pumping system and water heating system with high efficiency equipment;
Retro-commissioningof HVAC systems to improve heating and cooling efficiency;
The use of low-e glazing and insulated glass units to reduce heat loss and optimise thermal insulation;
Solar PV panels on both retail and office roof; and
Solar-poweredlandscape lighting fixtures and streetlamps.

SUSTAINABLE DEVELOPMENT REPORT 2020		44

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

Five Pillars

INDIGO is an excellent example of how each of the five pillars of Swire Properties' SD 2030 Strategy work in harmony to create sustainable places.

Places

People

Partners

Performance

(Environment)

(Economic)

Continuously Improving Indoor Air Quality

In 2017, INDIGO was rated one of the two best performing shopping malls in Beijing with respect to indoor air quality. INDIGO's management team prides itself on having achieved consistently excellent indoor air quality performance, and on the team's motivation to continuously improve.

Some of the many air quality-related measures we have taken include:

Installing electrostatic filters and enhancing the HVAC system to improve purification efficiency;
Photoplasma purification devices installed in the office and mall air conditioning systems;
A cloud-based system that provides continuous indoor air quality monitoring;
Filtering and flushing of the central air conditioning system during construction and before occupancy;
Use of low-VOC or VOC-free paints; and
Monitoring and mitigating indoor PM 2.5 levels.

SUSTAINABLE DEVELOPMENT REPORT 2020		45

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

Five Pillars

INDIGO is an excellent example of how each of the five pillars of Swire Properties' SD 2030 Strategy work in harmony to create sustainable places.

Places

People

Partners

Performance

(Environment)

(Economic)

Reducing, Recovering and Recycling Water

INDIGO has installed a rainwater and wastewater recovery and recycling system to capture water from multiple places around the complex. This creates grey water for toilet flushing and landscape irrigation. Water consumption reduction measures include:

Use of dual flush and auto flush systems for water closets, and infrared sensors for faucets and urinals; and
The installation of 500 high-efficiency water flow restrictors on bathroom faucets, lowering the flow rate of each faucet by approximately 60%.

SUSTAINABLE DEVELOPMENT REPORT 2020		46

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

Five Pillars

INDIGO is an excellent example of how each of the five pillars of Swire Properties' SD 2030 Strategy work in harmony to create sustainable places.

Places	People	Partners	Performance	Performance
(Environment)	(Economic)

Performance (Economic)

INDIGO consistently sets benchmarks for success. The complex continuously works to attract shoppers, visitors and diners through high-quality experiences.

Stimulating Economic Growth in the Surrounding Community

Evolving in step with the development of INDIGO has been the growth of businesses in the surrounding community. Over the past eight years, the growth and development of INDIGO has been an important part of the transformation of the area, helping to bring prosperity to the neighbourhood.

As the first mixed-use complex in the area, INDIGO has brought new shopping choices to customers, new spaces to companies and

retailers, and new opportunities for workers and entrepreneurs. In short, INDIGO has become a new driving force for the local economy.

In 2018, INDIGO launched a new brand slogan "LIVE THE LIFE", concurrently placing emphasis on its entertainment, fashion and food and beverage options to boost enjoyment and satisfaction among mall customers, and rolling out schemes to build closer links with them so as to keep track of people's changing tastes and needs.

SUSTAINABLE DEVELOPMENT REPORT 2020		47

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

Five Pillars

INDIGO is an excellent example of how each of the five pillars of Swire Properties' SD 2030 Strategy work in harmony to create sustainable places.

Places	People	Partners	Performance	Performance
(Environment)	(Economic)

Diversifying Revenue Streams Through Digital Transformation

This year, 47 live streaming events were held to promote the mall's quality brands and provide a contactless method of entertaining and engaging with customers during a time when most people were shopping from their homes. As of 31 December, more than 80 mall tenants participated in these events, which included fashion, cosmetics, food and beverage, lifestyle brands, EAST Beijing, and ONE INDIGO. The events attracted in excess of 16.7 million views and more than 1.5 million interactions, which directly and indirectly drove offline and online sales.

Taking on a Local Energy Conservation Challenge

In early 2018, to encourage clean, low-carbon, safe and efficient built environments, the local Chaoyang District Government announced that subsidies would be given to companies that employ energy conservation and carbon reduction measures in their projects. INDIGO rose to the challenge and implemented extensive green measures, which also aligned with our SD 2030 Strategy.

These efforts resulted in INDIGO Mall, ONE INDIGO and EAST Beijing being awarded LEED EBOM v4.1 Platinum in May 2019. This milestone was a crucial factor in INDIGO's receipt of a RMB5 million subsidy, the single largest amount given to a project in the Chinese mainland for energy conservation and emissions reduction achievements.

SUSTAINABLE DEVELOPMENT REPORT 2020		48

Places

Through effective placemaking and long-term placekeeping, we transform places while retaining their character to support communities and enhance people's lives.

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

Places

Highlights of Our Developments	Places Impact Report
Vibrancy	Livelihood	Wellbeing	Resilience

We recognise that the places we create and maintain have significant impacts on society and the environment. Through effective placemaking, we aim to transform the urban areas in which our properties are located into vibrant and sustainable communities by carefully balancing the aesthetic, functional, ecological, and cultural impacts of our developments.

At the same time, through long-term placekeeping, which involves continuously evolving, maintaining and managing our assets, we aim to enhance the lives of the people who live and work within our developments and the surrounding communities.

Top Material Issues



Local economic	Community investment/	Local revitalisation
development	engagement

Sustainable Development Goals

The SDGs relevant to initiatives under this Pillar are:

SDG 8	SDG 9	SDG 11
Promoting sustainable	Building resilient infrastructure,	Making cities and human
economic growth, employment	promoting inclusive and sustainable	settlements inclusive, safe,
and decent work for all.	industrialisation and fostering	resilient and sustainable.
	innovation.

SUSTAINABLE DEVELOPMENT REPORT 2020		50

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

Places

Highlights of Our Developments	Places Impact Report
Vibrancy	Livelihood	Wellbeing	Resilience

Highlights of Our Developments

GRI

102-2,102-4,102-6

Hong Kong	Chinese Mainland	Miami, U.S.A.

	Taikoo Place
Citygate	Cityplaza
Pacific Place

Hong Kong

Taikoo Place

Home to Swire for over 100 years, the Taikoo Place area has been transformed from an industrial area - the Taikoo dockyard and sugar refinery - into a vibrant commercial centre.

The ongoing redevelopment of Taikoo Place is now in its final phase. Phase I was completed in 2018 with the completion of One Taikoo Place, a 48-storeyhigh-performance office tower. Phase II, which includes the construction of Two Taikoo Place and 70,000 sq ft of green and open space, is well underway and is expected to be completed in 2022.

Taikoo Place was a winner of the Urban Land Institute 2020 Asia Pacific Awards for Excellence. According to the jury, Taikoo Place was recognised for being a model of a long-term urban regeneration project and for its outstanding contributions to sustainable development, resilience and improving the local community.

SUSTAINABLE DEVELOPMENT REPORT 2020		51

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

Places

Highlights of Our Developments	Places Impact Report
Vibrancy	Livelihood	Wellbeing	Resilience

Pacific Place

Located in Admiralty, Hong Kong, the Pacific Place complex is comprised of three Grade-A office towers with a total GFA of 2.2 million sq ft, 270 exclusive serviced apartments, and four five-star hotels, among them Swire Hotels' 117- room The Upper House, as well as Starstreet Precinct, an adjacent neighbourhood which Swire Properties has transformed into a lively area filled with cafés, bars, restaurants, galleries and boutique shops.

Cityplaza

Cityplaza is the largest shopping mall on Hong Kong Island, spanning a total floor area of approximately 1.11 million sq ft. Directly accessible from Tai Koo MTR Station, the six- level mall houses more than 170 shops and restaurants, a unique lifestyle cinema, an indoor ice rink, and over 800 indoor parking spaces. Enhancements to the tenant mix together with captivating mall promotions and activities continue to make Cityplaza a hub for leisure and happiness, embodying the spirit of its "LIVE HAPPY" slogan.

Citygate

Located in Tung Chung on Lantau Island, Citygate is Hong Kong's first and largest outlet shopping mall. Citygate Outlets was expanded in August 2019 to include a 474,000 sq ft complex. Directly connected to Tung Chung MTR Station and close to Hong Kong International Airport and the Hong Kong- Zhuhai-Macao Bridge, this development offers both excellent connectivity to transportation and is situated in a strategic location to explore Hong Kong tourist sites.

The mall is also connected to EAST Hong Kong, the Taikoo Shing residential development and more than 100 outdoor shops that serve the neighbourhood.

SUSTAINABLE DEVELOPMENT REPORT 2020		52

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

Places

Highlights of Our Developments	Places Impact Report
Vibrancy	Livelihood	Wellbeing	Resilience

Highlights of Our Developments

Hong Kong

Chinese Mainland

Miami, U.S.A.

Beijing

ChengduShanghai

Guangzhou

Chinese Mainland

Taikoo Li Sanlitun, Beijing

Taikoo Li Sanlitun was our first project in the Chinese mainland. Located in the heart of Beijing's Chaoyang District, the development played a crucial role in the transformation of Sanlitun into a centre of culture, retail, dining and hospitality.

SUSTAINABLE DEVELOPMENT REPORT 2020		53

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

Places

Highlights of Our Developments	Places Impact Report
Vibrancy	Livelihood	Wellbeing	Resilience

INDIGO, Beijing

INDIGO is a retail-led,mixed-use development with a shopping mall, a Grade-A office tower and a hotel. The complex has implemented extensive SD features and programmes, including high-powered solar panels, optimised skylights, city-leading recycling procedures, and our Green Kitchen Initiative. In 2019, it was also the first complex in the world to be awarded LEED EBOM (Existing Buildings: Operations and Maintenance) v4.1 Platinum Certification. In 2020, Swire Properties announced that we will

collaborate with our long-term partner Sino-Ocean Group to develop an extension to INDIGO, on a site adjacent to the existing development.

Read more about how SD is integrated into every facet of the design and operation at INDIGO in this report's SD in Actionsection.

Taikoo Hui, Guangzhou

Taikoo Hui in Guangzhou is a lifestyle destination located in the city's Tianhe District. The development's shopping mall was the first enclosed mall in the world to earn a Platinum Certification in the LEED EBOM category. In January 2020, the complex opened its "garden washrooms" - extended and revamped facilities which include a variety of green elements including copious amounts of greenery and water-saving toilets.

Sino-Ocean Taikoo Li Chengdu

Sino-Ocean Taikoo Li Chengdu is a 1.3 million sq ft retail-led development in Chengdu's Jinjiang District. At the centre of the complex is the 16-century-old Buddhist Daci Temple, a heritage site and a focal point for the city. Sino-Ocean Taikoo Li Chengdu was the first open-planlane-driven commercial complex in the world to gain LEED EBOM v4.1 Platinum Certification status, as well as the first project in Sichuan province and the first shopping mall

SUSTAINABLE DEVELOPMENT REPORT 2020		54

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

Places

Highlights of Our Developments	Places Impact Report
Vibrancy	Livelihood	Wellbeing	Resilience

in the Chinese mainland to achieve this certification. In 2020, the development became the first in our portfolio to be 100% powered by renewable electricity. These "four firsts" are a symbol of the hard work put into making the complex as sustainable as possible.

2020 marked the fifth year of operations at Sino-Ocean Taikoo Li Chengdu. The anniversary was celebrated with large-scaleopen-air exhibitions highlighting memorable experiences of visitors to the mall, and through product-related partnerships with popular brands.

Taikoo Li Qiantan, Shanghai

Located in the heart of Shanghai's Pudong

Qiantan International Business District, Taikoo

Li Qiantan will offer a GFA of approximately

1.3 million sq ft. The open plan development is being built using a "naturalism" design concept, blending elements found in nature with contemporary architecture, and includes numerous occupant wellness features like double-deck open space, an 86,000 sq ft central park at ground level and the Sky Loop, a 450m rooftop running track with greenery and leisure

spaces that adds to the positive lifestyle experience at the complex. Having already obtained WELL Core and Shell Platinum Precertification and LEED Gold Precertification, the first phase is expected to open in 2021.

HKRI Taikoo Hui, Shanghai

Located on Nanjing West Road, one of Shanghai's major shopping venues, with access to three Shanghai Metro lines, HKRI Taikoo Hui comprises two Grade-A office towers (with LEED Final Platinum Certification), a shopping mall (with LEED Final Gold Certification), and two hotels, namely The Middle House and The Sukhothai Shanghai. The development was designed to transform the area into a new business, shopping and entertainment hub.

SUSTAINABLE DEVELOPMENT REPORT 2020		55

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

Places

Highlights of Our Developments	Places Impact Report
Vibrancy	Livelihood	Wellbeing	Resilience

Highlights of Our Developments

Hong Kong	Chinese Mainland	Miami, U.S.A.

Miami, U.S.A

Miami, U.S.A.

Brickell City Centre, Miami

Brickell City Centre is our landmark mixed-use development in Miami, U.S.A. Opened in 2016, it is our first development to obtain LEED Gold Certification for Neighbourhood Development.

highlight of the centre is its state-of-the- art Climate Ribbon™, an elevated trellis that provides shade from the sun, creates air flow and collects rainwater, while also allowing natural light to penetrate and illuminate the shopping mall underneath it.

SUSTAINABLE DEVELOPMENT REPORT 2020		56

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

Places

Highlights of Our Developments	Places Impact Report
Vibrancy	Livelihood	Wellbeing	Resilience

Places Impact Report

Understanding the ultimate impact of the places we develop and manage have on society and the environment is crucial to our long-term decision making. In March 2020, we released our first Places Impact Report, focusing on Hong Kong's Island East - an area in which Swire has been invested for over 135 years - and addressing the question "What makes a great place?".

Examining both the tangible and intangible attributes of Taikoo Place and other developments, the report assessed how our placemaking and placekeeping efforts have shaped the Island East community. This innovative approach to assessing our developments has broadened how we define success and will inform and enhance our work in the future.

We are currently working on our second Places Impact Report which will focus on the area around Taikoo Li Sanlitun in Beijing's Chaoyang District.

SUSTAINABLE DEVELOPMENT REPORT 2020		57

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

Places

Highlights of Our Developments	Places Impact Report
Vibrancy	Livelihood	Wellbeing	Resilience

Vibrancy

Throughout 2020, to counter the negative effects of the pandemic, we worked to bring healing and hopeful art and other cultural activities to our communities.

Tong Chong Street Market

Tong Chong Street Market (TCSM) was created in 2015 in partnership with a local social enterprise. Partnering green lifestyle aspects with food to promote healthy living and sustainability, the market features everything from fresh farmers' produce to creative dishes, cooking tips, and the latest food and beverage trends. Operating from November 2019 to January 2020, and again in November 2020, the market offered coffee, gourmet choices, packaged food and a variety of sustainable products.

Supporting Culture and the Arts

Artistic expression is vital to the health of communities and society at large. Swire Properties is committed to supporting artists and performers by showcasing artistic and cultural works throughout our portfolio.

Conversations with Nature at Brickell City Centre

As part of Miami Art Week 2019, this exhibition, curated by Albie Alexander, examined humanity's deep connection with the natural world through introspective experiences. This four-day-long series of installations and events invited visitors to experience their interconnectedness with each other and with the Earth as a pathway to inspire positive action in the fight against climate change.

SUSTAINABLE DEVELOPMENT REPORT 2020		58

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

Places

Highlights of Our Developments	Places Impact Report
Vibrancy	Livelihood	Wellbeing	Resilience

Love Brings Hope Exhibition at Taikoo Hui

To help communities reopen and recover effectively as the Chinese mainland COVID-19 lockdown eased, Taikoo Hui in Guangzhou hosted an exhibition to honour heroes of the pandemic response. The one-month exhibition ran in June and July 2020 and showcased drawings by popular cartoonist Lin Dihuan and others created by students from Zhixin High School during the lockdown period. With a core message of "Love Brings Hope", the initiative also included an art show and a philanthropic auction that amplified efforts to help communities deal with the fallout from the public health crisis.

Uplifting Art at Sino-Ocean Taikoo Li Chengdu

Sino-Ocean Taikoo Li Chengdu hosted several exhibitions this year to uplift the local community. Teaming up with a men's lifestyle magazine to use illustration as a vehicle for hope and healing during the pandemic, one exhibition displayed illustrations on light boxes which underscored our care for the community - health care workers in particular.

We also partnered with a British design firm, Paul Cocksedge Studio, to present "Please Be Seated", a public art installation that explores the busy nature of urban life and how local audiences

interact with space and the community. The 15.2-metre-long installation features "waves of wood" rising up to form arches for people to walk through, and curves under to create space for people to sit, lie and relax. Echoing our strong focus on sustainable development, the piece is fabricated from 1,440 planks of sustainably sourced timber. This touring piece will move to other Swire Properties developments before settling into a permanent home at Taikoo Li Sanlitun in Beijing.

SUSTAINABLE DEVELOPMENT REPORT 2020		59

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

Places

Highlights of Our Developments	Places Impact Report
Vibrancy	Livelihood	Wellbeing	Resilience

Seeds of Life

The House Collective's "Encounters Across Cultures: Seeds of Life" mobile art installation travelled from The Opposite House to The Upper House, then The Middle House and finally The Temple House between the months of March 2019 and January 2020. Created by Swiss- born artist Katja Loher, the installation merged creative art and modern fashion with ancient Chinese philosophy.

Launching "Home Grown" in Miami

In November 2020, we launched a new community-focused corporate initiative called "Home Grown," aiming to unify and inspire our stakeholders to provide support to underserved neighbourhoods and groups of people in need. Three programmes were part of the initiative's launch:

Home Grown at the Village, which provided kitchen training and meal-making workshops for residents of a local women's and children's
homeless services facility in partnership with celebrity chefs;
A Holiday Tech Drive, designed to ensure that students in a local Youth Centre have access to fast, reliable internet at home; and
A Christmas tree recycling drive which encouraged tenants and residents of the Brickell City Centre community to bring in their festive trees and have them transformed into mulch, compost and woodchips for future use.

SUSTAINABLE DEVELOPMENT REPORT 2020		60

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

Places

Highlights of Our Developments	Places Impact Report
Vibrancy	Livelihood	Wellbeing	Resilience

Youth Empowerment: Giving Back to Hong Kong

The Swire Properties Placemaking Academy is a significant part of our work to empower and foster the ambitions of Hong Kong's youth, ultimately helping to build vibrant local communities.

The second edition of the Academy saw 21 students from four Hong Kong universities take up an apprenticeship (from July to December 2020) to design, plan and execute the Company's year-end community celebration - the White Christmas Street Fair.

COVID-19 presented them with a unique challenge: how to produce a CSR event amid turbulent times while faced with many restrictions and disruptions. In the end, they came up with a creative and effective way to reconnect with the community, give back to those in need and lift people's spirits.

The students received a combination of thorough training and support, access to the Company's resources and creative freedom to bring their ideas to life. These factors, along with the experience of directly helping people in need, allowed them the rare opportunity to see first-hand how their work changed people's lives for the better.

This metamorphic group experience, in which empathy played a huge role, gave them the confidence, resilience and knowledge that they're capable of bringing positive change to society - truly an empowering experience.

" We spent hours and hours searching for	inspirational stories from local
communities, ones that spark hope, but more importantly, ones that showcase
humanity's will to persevere. These tales were of people impacted by but unwilling
to be shaken by the pandemic.	"
- Crystal Lam, Participant

		21	46



		participants	masterclasses

		288 hours	HK$525,000
		of practical training	in employment support

SUSTAINABLE DEVELOPMENT REPORT 2020		61

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

Places

Highlights of Our Developments	Places Impact Report
Vibrancy	Livelihood	Wellbeing	Resilience

Student Feedback on Developing New Skill Sets

85%

Acquired new skill sets and knowledge

87%

Felt better prepared for their future careers

Top 3 Learning Areas

Communication Skills	Resilience	Teamwork

Student Feedback on Giving Back to Society

100%

Improved their understanding of societal challenges in Hong Kong

100%

Are confident they can bring positive change to society in times of adversity

As the students worked, they were mentored by the Company's senior management, sustainability and event planning experts, and thought leaders from the design and community planning industries. Theytookpartin46masterclasses,includingoneby KS Wong, Secretary for the Environment, on green event planning and sustainable development, during which they received a number of practical tips.

After months of work, the event took on its final

form: a travelling performance truck called the "White Christmas Express". The truck made stops at Taikoo Place, the Starstreet Precinct and Citygate Outlets. Its six programmes were inspired by stories of everyday Hong Kong citizens and embodied the qualities of hope, perseverance and kindness - brought to life through storytelling, musical performances by artists and local musicians and wellness activities.

SUSTAINABLE DEVELOPMENT REPORT 2020		62

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

Places

Highlights of Our Developments	Places Impact Report
Vibrancy	Livelihood	Wellbeing	Resilience

The White Christmas Express performances were also broadcasted across various online channels, creatively reconnecting and engaging with the greater Hong Kong community during these times of change and adversity. In the spirit of the holidays, the students also hand-picked over HK$400,000 worth of gifts which were distributed to six community groups.

" Despite the challenges of 2020, we were thrilled to be able to still host the White Christmas Street Fair, thanks to the resilience and creativity of our 21 Placemaking

Academy university students. Now, more than ever, we want to do our part and give
back to the community, empower younger generations to make a difference, and
instil in them a strong sense of compassion and contribution to the community.	"
- Guy Bradley, Chief Executive

5		18	HK$825,000

NGO partners		Beneficiaries	Total value of funds raised
			and items donated to groups

SUSTAINABLE DEVELOPMENT REPORT 2020		63

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

Places

Highlights of Our Developments	Places Impact Report
Vibrancy	Livelihood	Wellbeing	Resilience

Livelihood

We worked to provide a strong foundation for people during 2020 - driving employment and supporting NGOs and social enterprises as they carried out vital anti-pandemic activities.

Providing Rental Concessions in Times of Trouble

Swire Properties was one of the first major property developers in Hong Kong to offer rental concessions amid the social unrest of 2019 and the COVID-19 pandemic. In keeping with our long- term perspective, Swire Properties' top priority during these challenging times was to help our tenants keep their operations afloat and sustain their businesses. In this spirit of partnership, we continued to offer these concessions to our retail tenants throughout 2020, offering tailored support to tenants on a case-by-case basis. This

strategy allowed us to maintain a robust occupancy rate at our malls in Hong Kong during an exceptionally difficult year for businesses across the city.

Meanwhile, at Sino-Ocean Taikoo Li Chengdu, we provided a three-part solution for our tenants, which consisted of:

Promoting discounts and cash rebate events involving over 100 tenants;
Promoting the purchase of pre-paid cards to boost sales; and
Investing in VIP-targeted promotional programmes to capture more customers.

This solution helped relieve financial pressures on tenants, create a positive business atmosphere in the mall, and brought more business to our partner banks: a "win-win-win" scenario for all participants.

SUSTAINABLE DEVELOPMENT REPORT 2020		64

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

Places

Highlights of Our Developments	Places Impact Report
Vibrancy	Livelihood	Wellbeing	Resilience

Cityplaza Maker House Continues

Building on the success of the previous Maker House programme, we continued to provide business development support for young entrepreneurs, specifically local artists seeking online to offline retail opportunities through this community engagement initiative at Cityplaza.

Fromdesignadviceonfit-outmatterstocustomer engagement, the Cityplaza retail portfolio team shared their experiences on how best to capture the attention of shoppers. Throughout 2020, various workshops were held on weekends to create interactive and experiential shopping experiences for customers.

Taikoo Li Sanlitun Night Economy

In 2019, with the launch of Beijing's new policy to stimulate the night economy, Chaoyang District became the first district in the city to issue a District Consumer Stimulus Work Plan (2019-2021). This plan encouraged the business community to find new and innovative ways of building an evening consumer ecosystem.

As a landmark commercial development for the district, Taikoo Li Sanlitun continued to drive Chaoyang's night-time economy in 2020. In mid-

2020, Chaoyang's Commerce Bureau announced a plan to ramp up night-time consumption in Beijing to help the district recover from the pandemic. Events at Taikoo Li Sanlitun included August's "Bite of Summer", offering discounts at various restaurants, and a night market held in late August.

SUSTAINABLE DEVELOPMENT REPORT 2020		65

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

Places

Highlights of Our Developments	Places Impact Report
Vibrancy	Livelihood	Wellbeing	Resilience

Blueprint

Blueprint offers flexible solutions for workspace and event space needs across two floors in Dorset House in Taikoo Place. On one floor, the open-planco-working area houses 90 desks, suitable for nurturing start-up companies and small businesses, while 15 private offices of various sizes are available to other clients. The second floor holds 10,000 sq ft of event venues including an auditorium, a town hall and several training rooms, all equipped with

sophisticated audio-visual equipment.

In 2020, as more companies implemented work-from-home policies, the flexibility offered by Blueprint's various memberships - which includes lounge passes, day passes, and meeting room bookings - became more attractive, with the all-inclusive facilities offering helpful alternatives to home offices and those seeking a more professional working environment.

SUSTAINABLE DEVELOPMENT REPORT 2020		66

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

Places

Highlights of Our Developments	Places Impact Report
Vibrancy	Livelihood	Wellbeing	Resilience

Wellbeing

We focused on the health and hygiene aspects of wellbeing in 2020, taking care of the health of our visitors, tenants and workers.

COVID-19 Cleaning and Protection Measures

With the scale of the human cost and global economic impacts of the COVID-19 pandemic continuing to unfold throughout the year, Swire Properties worked hard to find ways to support our employees, tenants, customers, guests, and surrounding communities as we fought the virus.

Cleaning Robots

Swire Properties has embraced new technologies to maintain hygiene and reduce direct human contact amid the COVID-19 pandemic. At HKRI Taikoo Hui mall and its office towers and the ONE INDIGO office tower, the Company deployed automated robotic cleaning machines, which ran on programmed orders and cleaned within preprogrammed areas.

At Pacific Place, we deployed a cleaning robot, which enhances cleaning efficiency while simultaneously freeing up cleaning staff for other tasks. After being programmed with a

cleaning map, the robot automatically starts the cleaning process. Being equipped with sensors, it avoids objects and people, and can generate a report after completion, analysing the time spent cleaning, the coverage area and cleaning efficiency.

Robust Temperature Screening Procedures

From the early days of the COVID-19 outbreak, all our properties were equipped with temperature- scanning technology to measure visitors' temperature and ensure that no one with a fever was given access. Many of our properties employed infrared monitors at the entrances of malls and office buildings, making temperature scanning more efficient and automatic.

SUSTAINABLE DEVELOPMENT REPORT 2020		67

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

Places

Highlights of Our Developments	Places Impact Report
Vibrancy	Livelihood	Wellbeing	Resilience

Use of Germicidal Technology

Our properties in Hong Kong and the Chinese mainland began using a germicidal technology, applying it to common building facilities, including the handrails of entrance doors, escalator handrails, lift cars, and lift buttons in the complex's office towers. The technology involves a long-lasting antimicrobial gel that kills almost 100% of viruses and bacteria and remains effective for up to 90 days.

Fun Farming at Taikoo Hui in Guangzhou

In April and May, Taikoo Hui in Guangzhou ran a farming programme that gave members of the mall's Elite Club and their families hands-on, direct involvement with farming activities like sowing seeds, crop fertilisation and harvesting fruits and vegetables.

Participants ran a small plot in the mall's open- air garden, while a professor from South China Agricultural University guided them through the steps of plant cultivation. At the end of

the programme, the participants made fresh, healthy salads with their harvest under the mentorship of the head chef from a vegan-friendly restaurant.

SUSTAINABLE DEVELOPMENT REPORT 2020		68

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

Places

Highlights of Our Developments	Places Impact Report
Vibrancy	Livelihood	Wellbeing	Resilience

Promoting Health and Fitness in our Communities

In 2020, health and wellness concerns were top of mind for people around the world. Swire Properties emphasised these aspects through several initiatives.

"The Mag Mixer: Let's Get Fit"

During the fall, we worked with four wellness partners at Taikoo Place on the "Let's Get Fit" challenge, a six-week initiative which inspired forty Taikoo Place executives to train together. They visited gym facilities, completed an online nutrition coaching session and meditation classes and inspired one another to design wellness routines using tips from trainers, nutritionists and mindfulness coaches. Upon completion of the programme, the three participants who lost the highest percentage of

body fat were awarded complimentary gym memberships and other prizes.

The Underline at Brickell City Centre

In 2016, Swire Properties became a founding sponsor of The Underline, the ten-mile-long linear park which will transform underutilised land below Miami's Metrorail. In 2020, to mark the opening of the park's first mile to the public, we pledged to contribute an additional US$500,000 over the next five years to this important community project. As a major sponsor, Swire Properties will continue to advocate funding, design and future maintenance of the project.

Once completed, The Underline will be an urban

trail and a living art destination which will encourage Miami residents to embrace a new urban lifestyle by walking, biking or taking mass transit as an alternative to driving.

"March Month of Wellness"

At The Upper House, we ran a "March Month of Wellness" campaign for guests and staff. We collaborated with various health-focused organisations to provide wellness experiences. The sessions included yoga, mindfulness practices, dynamic workouts, and nourishing cuisine offered throughout the month.

SUSTAINABLE DEVELOPMENT REPORT 2020		69

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

Places

Highlights of Our Developments	Places Impact Report
Vibrancy	Livelihood	Wellbeing	Resilience

Resilience

Throughout Hong Kong and the Chinese mainland, we worked to negate the effects of the pandemic by building social cohesion, boosting community investment and raising adaptive capacity.

COVID-19 Programmes and Donations to Local Communities

At all our properties, we enacted measures to prevent the spread of COVID-19 and to mitigate its physical and emotional toll on essential workers.

Unattended "Love and Care Stations"

To thank the "silent heroes" of the pandemic - the hardworking individuals who deliver food, disinfect buildings and streets and many other service staff - several Swire Properties malls in the Chinese mainland launched "Unattended Love and Care Stations" campaigns in early 2020. In Shanghai, over 30 brands from HKRI Taikoo Hui offered free products at a special unmanned station in the corridor of the MetroLink as gifts for service personnel. Elsewhere in the Chinese mainland, similar donation stations were set up at INDIGO, Taikoo Li Sanlitun and Taikoo Hui to honour these heroes.

Thanking Frontline Workers

Taikoo Li Sanlitun held a range of activities in the run-up to International Labour Day, 1 May, to honour frontline workers fighting the COVID-19 pandemic. On 30 April, Taikoo Li Sanlitun gave medical supplies and gifts to a pandemic response taskforce at the Sanlitun Street Office and the Office's media centre. Our employees at the complex reached out several times to express their heartfelt gratitude and appreciation for the taskforce's dedication and unwavering efforts to contain the unprecedented health crisis.

In Hong Kong, we delivered thank you cards signed by our Community Ambassadors along with 5,900 soup packs to doctors, nurses and staff at Pamela Youde Nethersole Eastern Hospital to send medical workers a simple message: "we are all in this together".

GRI

203, 413

HKEX Aspect B8 KPI B8.1, B8.2

SUSTAINABLE DEVELOPMENT REPORT 2020		70

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

Places

Highlights of Our Developments	Places Impact Report
Vibrancy	Livelihood	Wellbeing	Resilience

Assisting the Zubin Foundation Initiative

Cityplaza hosted a group of 30 volunteers from The Zubin Foundation, a charity dedicated to providing opportunities to and reducing the suffering of Hong Kong's marginalised ethnic minority communities - many of whom had lost their jobs during the pandemic. The volunteers packed care boxes full of food, face masks and children's craft kits. Cityplaza helped by providing office space, packing volunteers and logistics support.

Together, the volunteers:

Packed and delivered care boxes to 730 families
Enrolled 46 drivers to drop off boxes at 488 pick-up locations
Extended aid to more than 3,400 individuals, including 1,270 children

Matching Donations to Alleviate Hardship

To support less fortunate members of our communities, Swire Properties' Community Ambassador team ran a number of donation matching programmes throughout 2020 that engaged the community to contribute monetary donations as well as donations of food and other goods. These included:

The "e-Buddy" matching donation scheme
which raised over HK$57,000 to purchase laptops and provide learning support to 19 students identified by our NGO partner, Society for Community Organization;
The "A Spoonful of Love" campaign, where our Community Ambassadors partnered with EAST Hong Kong to prepare and sell nourishing soup packs to our staff members - every purchase was matched by a donation from Swire Properties, with a total of 2,216 soup packs sent to low-income families;
"Noodles for Love", which sold charity noodle packs for HK$50. Each purchase was matched by a donation by theSwire Trustto provide people in need with noodles and a SEWomenreusable mask; and
"Rice Dumplings for Sharing", in which our Community Ambassadors and The Refinery Club at Taikoo Place teamed up to raise money and shared more than 250 rice dumplings with the Direction Association for the Handicapped during the Dragon Boat Festival.

SUSTAINABLE DEVELOPMENT REPORT 2020		71

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

Places

Highlights of Our Developments	Places Impact Report
Vibrancy	Livelihood	Wellbeing	Resilience

Community Caring Fund Battles COVID-19

The Swire Properties Community Caring Fund ("CCF")providessponsorshiptolesser-knownHongKong-based community organisations nominated by our employees to help these organisations plan and implement community-based initiatives and outreach projects.

This year the CCF provided pandemic-related support to the community via various channels, including working with NGOs and professional bodies to provide supplies to groups of people in need. Swire Properties launched a series of

measures to safeguard the health of our staff and tenants during the COVID-19 outbreak.

One of the programmes funded by the CCF was called "Caring Starts from Home", which targeted high-risk workers at our properties and their families - such as cleaners, building management, security, and technical staff - all of whom received a special "safety care pack" filled with disinfectant products and a pamphlet highlighting 16 health tips. Over 2,800 packs were distributed in total.

Along with distributing hand disinfectant to our frontline staff and contractors to maintain their safety at work, an awareness campaign was launched to remind these staff members to stay safe and practice good personal hygiene, providing 16 easy-to-remember health tips. A series of digital stickers was also created to help increase the impact of the campaign.

The Zhuchuang Community Centre

Since 2018, the Zhuchuang Community Centre in Sichuan has been a base for Swire Properties volunteers, who regularly hold charity events aimed at young people and seniors living in nearby communities. During the pandemic, the Zhuchuang Community Centre joined forces with several social work organisations to enrich the online studying experience of students. The Centre launched online classes, with themes including computer programming, English lessons, as well as sessions on psychotherapy

and COVID-19 protection. The Centre also collaborated with a number of social work organisations and volunteers to deliver essential protection gear and other materials to workers on the front line.

SUSTAINABLE DEVELOPMENT REPORT 2020		72

People

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

People

Progress	Employment Profile	Talent Attraction	Talent Retention
Safety, Health and Wellbeing	Diversity and Inclusion	Volunteering

We believe that the contributions of our employees are critical to the implementation of our SD 2030 Strategy and to our overall success. As such, we aim to create an environment where our employees will be healthier, happier and more productive. We also seek to invest in our employees and aim to provide them with rewarding career paths so as to develop a diverse, industry-leading team.

Top Material Issues


Talent attraction/retention		Occupational health	Employee wellbeing
	and safety

SUSTAINABLE DEVELOPMENT REPORT 2020		74

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

People

Progress	Employment Profile	Talent Attraction	Talent Retention
Safety, Health and Wellbeing	Diversity and Inclusion	Volunteering

Progress

Our People Working Group is comprised of 19 representatives from different functions within the Company. Its primary responsibility is to achieve progress in the five focus areas of the People Pillar: Talent Attraction; Talent Retention; Safety, Health and Wellbeing; Diversity and Inclusion; and Volunteering.

In 2020, we achieved almost all of our 2020 KPIs, except for the number of volunteering hours. This KPI and others were impacted by event cancellations and restrictions placed on face-to-face meetings and gatherings, due to the COVID-19 pandemic. However, a clear upwards trend is evident in our performance in previous years. We are now working towards our 2025 and 2030 targetsas we pursue our ultimate goal: to be the leading sustainable development performer in our industry globally by 2030.

Our progress towards our 2020 KPIs is summarised in the table below.

Progress Summary Table

Talent Attraction

Employer Branding

2020 KPI

Refine communication strategy for employer branding

Progress Updates in 2020

A new online communication strategy for employer branding has been rolled out and is being used for recruitment in Hong Kong and the Chinese mainland.

Compensation and Benefits

2020 KPI

Conduct compensation and benefits review

Progress Updates in 2020

A job evaluation platform has been identified which will aid in the development of a Swire Properties Rewards Philosophy. The compensation and benefits review exercise will start in Hong Kong and then be expanded to our Chinese mainland and Hotels portfolio.

Recruitment Process

2020 KPI		Progress Updates in 2020

• Introduce new digitalised recruitment		• Digitalised career application websites
platform		have been developed for Swire Hotels.

SUSTAINABLE DEVELOPMENT REPORT 2020		75

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

People

Progress	Employment Profile	Talent Attraction	Talent Retention
Safety, Health and Wellbeing	Diversity and Inclusion	Volunteering

Talent Retention

Learning and Development

2020 KPI

25% increase in training hours per employee per year3

Progress Updates in 2020

Delivered more than 126,000 training hours in 2020, an average of 20 training hours per employee4.
In 2019, we delivered more than 169,000
training hours, which represented an increase of 112% compared to the 2016 baseline.

Performance Development Review ("PDR")

2020 KPI

Incorporate elements of the SD 2030 Strategy into annual performance goals and PDR for all employees

Incentive Structure

2020 KPI

Conduct incentive structure review

Progress Updates in 2020

Since 2019, our office employees have been asked to set their annual performance goals to align with each Pillar.

Progress Updates in 2020

A job evaluation platform has been identified to develop a Swire Properties Rewards Philosophy. The compensation and benefits review exercise will start in Hong Kong and then be expanded to our Chinese mainland and Hotels portfolio.

Compared to the baseline year of 2016.
This figure was lower than previous years due to COVID-19 restrictions.

SUSTAINABLE DEVELOPMENT REPORT 2020		76

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

People

Progress	Employment Profile	Talent Attraction	Talent Retention
Safety, Health and Wellbeing	Diversity and Inclusion	Volunteering

Safety, Health & Wellbeing

Safety

2020 KPI

Increase total occupational health and safety ("OHS") training hours by 5%5
Conduct compulsory OHS training via an e-learning platform for all of our employees
Maintain Lost Time Injury Rate ("LTIR")6 below 2.0
Maintain record of zero work-related fatalities
Migrate OHSAS 18001 to ISO 45001 standard in Hong Kong and Chinese mainland7 portfolios

5 Compared to the baseline year of 2015.

Progress Updates in 2020

Delivered approximately 23,870 OHS training hours. In 2019, we delivered
more than 28,600 hours, representing an increase of 21%.
Launched an e-learning platform for senior management to receive
compulsory OHS training, with a completion rate of 100%. We expanded this digital platform to frontline and office employees in phases throughout 2020.
LTIR of 1.25.
Maintained zero work-related fatalities.
We migrated our safety management systems in Hong Kong to the
ISO 45001:2018 standard several years ago. Four properties in our Chinese mainland portfolio completed this migration in 2020.

LTIR represents the number of injuries per 100 employees per year. It is calculated by multiplying the total number of injuries by 200,000 and then dividing the product by the total number of hours worked. The factor 200,000 is the annual number of hours worked by 100 employees, based on 40 hours per week for 50 weeks per year.
Non-jointventure centres (i.e. Taikoo Hui and Taikoo Li Sanlitun) only.

SUSTAINABLE DEVELOPMENT REPORT 2020		77

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

People

Progress	Employment Profile	Talent Attraction	Talent Retention
Safety, Health and Wellbeing	Diversity and Inclusion	Volunteering

Safety, Health & Wellbeing

Satisfaction

2020 KPI

Conduct employee engagement survey for all employees
Implement employee assistance programme in all Chinese mainland8 offices

Progress Updates in 2020

This survey was launched and completed for all employees in our Hong Kong and Chinese mainland portfolios

in 2020, with an overall response rate of

97%.

Maintained our previously implemented employee assistance programme for office and frontline employees.

Health and Wellbeing

2020 KPI

Develop a health and wellbeing policy framework

Progress Updates in 2020

Maintained a wellness programme for employees in our Hong Kong and Chinese mainland portfolios, including a sponsorship fund in Hong Kong providing financial support for employees to organise internal sports clubs and other interest clubs. During the COVID-19 pandemic, our interest club activities were incorporated into the wellness programme.

8 Non-joint venture centres (i.e. Taikoo Hui and Taikoo Li Sanlitun) only.

SUSTAINABLE DEVELOPMENT REPORT 2020		78

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

People

Progress	Employment Profile	Talent Attraction	Talent Retention
Safety, Health and Wellbeing	Diversity and Inclusion	Volunteering

Diversity and Inclusion

Policy, Strategy and Governance

2020 KPI		Progress Updates in 2020

• Adopt a diversity and inclusion ("D&I")		• Our D&I Policyhas been adopted.
Policy
• Establish a D&I committee		• A D&I Committee has been established
		and continues to work on implementing
		the D&I Policy and related initiatives.
• Introduce a formal employee grievance		• Grievance and reporting procedures
policy		are outlined in our Company Code of
		Conduct.

Culture

2020 KPI		Progress Updates in 2020

• Conduct D&I awareness training for		• D&I awareness training was conducted
senior management		for senior management.

Disclosure

2020 KPI

Public disclosure of data on gender, age, job level, pay and ethnicity

Progress Updates in 2020

Data on gender, age, job level, and pay for 2020 is disclosed in the Performance Data Summaryof this report.

Working Environment

2020 KPI

Develop a Flexible Working Policy and associated guidelines

Progress Updates in 2020

Continued to roll out our Flexible Working Policy, adding a Sabbatical Leave Policy in addition to the Staggered Working Hours initiative.

SUSTAINABLE DEVELOPMENT REPORT 2020		79

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

People

Progress	Employment Profile	Talent Attraction	Talent Retention
Safety, Health and Wellbeing	Diversity and Inclusion	Volunteering

Volunteering

Community Ambassador Programme Community Ambassador Programme

2020 KPI

20% increase in volunteer service hours (>9,300 hours)9
Introduce Community Ambassador programme in employee induction

Progress Updates in 2020

This year, our Community Ambassadors in Hong Kong, the Chinese mainland
and Miami, U.S.A. contributed more than 2,000 volunteer service hours10. In 2019, our Community Ambassadors contributed more than 7,000 hours.
Since 2017, our basic induction training for new hires in Beijing and Hong Kong includes an introduction to the Community Ambassador programme.

Community Caring Fund

2020 KPI		Progress Updates in 2020

• Increase the number of nominated		• This year's fund supported two projects
programmes from employees by		related to COVID-19 prevention and
20%11		protection. See Resiliencefor more
		details.

9/11 Compared to the baseline year of 2016.

10 This figure was lower than previous years due to COVID-19 restrictions.

SUSTAINABLE DEVELOPMENT REPORT 2020		80

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

People

Progress	Employment Profile	Talent Attraction	Talent Retention
Safety, Health and Wellbeing	Diversity and Inclusion	Volunteering

Employment Profile

We employ 6,330 people12 , of which approximately 3,200 are located in Hong Kong, 2,700 in the Chinese mainland, and 300 in Miami, U.S.A.

	Employees, by gender
Male		Female
3,785 (59.8%)	2,549 (40.2%)

Employees, by age group

GRI

102-8,102-41, 401

HKEX

KPI B1.1

Under 30 years old

1,460 (23.1%)

30 to 50 years old

3,517 (55.5%)

Over 50 years old

1,357 (21.4%)

Employees, by region

	The Chinese mainland
Hong Kong	2,754 (43.5%)

3,241 (51.2%)

Miami, U.S.A.

329(5.2%)

Others 10 (0.1%)

12 This figure reflects permanent employees with permanent and fixed term/temporary contracts in our Hong Kong portfolio, Chinese mainland portfolio, U.S.A. portfolio, and Swire Hotels.

SUSTAINABLE DEVELOPMENT REPORT 2020		81

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

People

Progress	Employment Profile	Talent Attraction	Talent Retention
Safety, Health and Wellbeing	Diversity and Inclusion	Volunteering

Talent Attraction

Continuing to Deliver Excellence for our Employees

We believe that our employees receive competitive remuneration packages with a variety of benefits. In Hong Kong, these include medical care, retirement schemes and discretionary bonuses, while in the Chinese mainland, in addition to social insurance and housing funds, they are provided with medical care and discretionary bonuses.

Swire Properties strives to ensure that every employee receives regular, objective, fair, and open assessments of their performance and is rewarded accordingly with merit-based incentives. We have a Performance and Development Review ("PDR") system in place to streamline our assessment processes and ensure consistency across the Company.

We have asked our office employees to align their annual performance goals with each SD Pillar. This year, we identified a job evaluation platform which will aid in the development of a Swire Properties Rewards Philosophy - ensuring that our employees continue to receive fair pay internally and a competitive salary within the industry. Next, we will conduct a compensation and benefits review exercise. This will start in Hong Kong and then be expanded to our Chinese mainland and Hotels portfolios.

In 2020, we launched a new employer branding communication strategy to ensure that we continue to attract and retain talent, and introduced new targets relating to employer branding, which will support our long-term plan of being identified as a "preferred employer" by 2030.

In 2020, we also introduced a blended learning approach to onboarding interns and trainees. While traditional in-person visits to our portfolios took place, half of the orientation was conducted online via our internal platform. New joiners could access the platform at any time to familiarise themselves with the Company by reading articles, completing quizzes and watching videos of department representatives sharing their experiences. This approach cut down the manpower involved in the orientation process, and also serves as a blueprint for future recruits regardless of their onboarding date or location.

Total New Hires, by region

	Number	Percentage

Hong Kong	415	38.5%

Chinese mainland	556	51.6%

Miami, U.S.A.	106	9.9%

Total

1,077

HKEX

Aspect B1

SUSTAINABLE DEVELOPMENT REPORT 2020		82

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

People

Progress	Employment Profile	Talent Attraction	Talent Retention
Safety, Health and Wellbeing	Diversity and Inclusion	Volunteering

Swire Properties Named Most Attractive Employer in Hong Kong

We were named the Most Attractive Employer in the Randstad Hong Kong Employer Brand Research 2020. We have either won or placed in the top three of the Randstad Employer Brand Awardsfor five consecutive years. This year, 75 of Hong Kong's largest companies, based on workforce size, competed in these awards, the results of which were determined by the opinions of thousands of locally based employees and job seekers. We were rated positively by the voters on several aspects, including corporate financial

health, corporate reputation and job security.

Anna Thompson, Director, Human Resources at Swire Properties, expressed the Company's gratitude, saying, "Ultimately, it's our people who will help bring our vision of building vibrant

communities to life...flexibility, agility, understanding and solidarity, these concepts have inspired our policies and allowed us to meet challenges such as COVID-19 head on and come out stronger and more united than ever."

New Online Onboarding Platform

This year, we launched an online onboarding platform to enhance the existing onboarding process by giving new joiners access to important company information and learn about our core values and culture before commencing work. New joiners can access the platform at any time, including from their mobile phones, creating the added benefit of bringing greater convenience to the employees. The platform was launched in March for office workers and in September for frontline new joiners.

SUSTAINABLE DEVELOPMENT REPORT 2020		83

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

People

Progress	Employment Profile	Talent Attraction	Talent Retention
Safety, Health and Wellbeing	Diversity and Inclusion	Volunteering

Talent Retention

We attach great importance to attracting talented people to work with us and retaining them as they develop their long-term careers within the Company.

In August 2020, we conducted a People Engagement Survey involving over 4,000 employees across Hong Kong and the Chinese mainland, which received an impressive overall response rate of 97%. The survey questions covered 21 categories including Company core values, communication, sustainable engagement, diversity and inclusion and digital transformation, amongst many others. The results are providing valuable insights that will allow us to understand employees' needs and ultimately create a better place for them to work.

Key results:

Overall, we have outperformed the global real estate and property and asset management norm
Our top five areas of strength are: retention; accountability and empowerment; performance management; recognition and benefits; customer centricity
88% of our employees feel engaged, with the top drivers of engagement being accountability and empowerment; senior leadership; and working environment
In terms of employee engagement, we excelled in 18 categories benchmarked against industry peers around the world
91% of our employees believe in our corporate vision and values, a figure that significantly outperforms the norm and provides valuable reassurance that Swire Properties is "on the right track".

The next steps in this engagement process include focus group discussions and regular "pulse surveys" taken for on-going monitoring and action planning purposes.

Learning and Development Programmes

Our multi-year trainee programmes help develop talent in building surveying, engineering and general management. In one example, Swire Hotels' 18-month international operations management trainee programme provides wide-ranging exposure to hotel operations in Hong Kong, the Chinese mainland and Miami, U.S.A.

Other learning and development programmes across the Company include:

On-the-jobtraining;
Internal job rotations;
Mentoring opportunities;
Secondments in other markets where we operate; and
Management and leadership training programmes.

GRI

401, 404

HKEX

Aspect B3

SUSTAINABLE DEVELOPMENT REPORT 2020		84

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

People

Progress	Employment Profile	Talent Attraction	Talent Retention
Safety, Health and Wellbeing	Diversity and Inclusion	Volunteering

New Evaluation Framework for Learning and Development Programmes

We have developed a learning evaluation framework, with reference to the Kirkpatrick Evaluation Model, to help us analyse and evaluate the impact of our different learning and development programmes.

We are also reviewing selected leadership training programmes such as the Achieving Excellence Programme. This is a two-year leadership programme that aims to help our managers discover their leadership potential through workshops and other interventions focused on developing leadership and communication skills, coaching leadership, strategic thinking, fostering teamwork, and performance management.

We have started to adopt a multidimensional evaluation system including a 360-degree feedback mechanism, among other elements, so that we can gather feedback from individual employees on how our learning and development programmes have helped them in their career development and how these programmes have contributed to employee retention and work efficiency improvements.

Total Training Hours and Spending

>126,000 hours	20 hours	HK$4.8 million

Total training hours	Average training hours	Total training spend
	per employee

HKEX

KPI B3.2

Average Hours of Training,		Average Hours of Training,
by gender		by employment category
2020	2020

18.1	20.5
Male	Management
22.8	19.8
Female	Non-management

SUSTAINABLE DEVELOPMENT REPORT 2020		85

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

People

Progress	Employment Profile	Talent Attraction	Talent Retention
Safety, Health and Wellbeing	Diversity and Inclusion	Volunteering

Training Needs Analysis

In April 2020, we conducted a comprehensive learning and development survey of our office staff to identify the gaps between our existing training offerings and actual and future training needs. The online survey covered such areas as technical knowledge, individual effectiveness and capabilities, leadership skills, learning approach preferences, and others.

Based on the survey findings, we will formulate a new learning roadmap and curriculum which will provide more engaging learning experiences and improved learning effectiveness. After this, the next step will be to continuously gather feedback from end-users to fine-tune our training offerings according to evolving staff development and business needs.

eLearning Hub Development

Embracing the concept that "learning is not limited to the classroom", our recently launched e-Learning Hub is a digital library that encourages knowledge sharing and promotes a culture of "self-learning" among staff. The hub features:

Paper book borrowing;
An e-Learning Hub Kindle account;
Exclusive e-books and videos; and
Book recommendations from senior managers, fellow colleagues and subject matter experts.

A pilot version of the e-Learning Hub was established in late 2020 in partnership with our Innovation Accelerator and will be officially launched in early 2021.

Keeping Up with the Latest Trends: our Digital Series Continues

This year, we continued to host workshops that help our marketing teams address current and upcoming marketing challenges - identifying the latest digital marketing trends and strengthening our digital marketing capabilities. In March, our Digital Marketing Team hosted the inaugural 2020 Digital Series online workshop called "Growth Hacker Secrets to Mobile App Development". This was followed by online

workshops delivered by expert coaches on topics including "Search Engine Marketing and Optimization Bootcamp", "Growth Marketing Essentials", and "A Quick Lesson on Agile Project Management".

SUSTAINABLE DEVELOPMENT REPORT 2020		86

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

People

Progress	Employment Profile	Talent Attraction	Talent Retention
Safety, Health and Wellbeing	Diversity and Inclusion	Volunteering

Building Management Team Leadership Excellence Programme

2020 saw the kick-off of a new Leadership Excellence Programme designed to develop stronger building management team ("BMT") leaders and create a more structured approach to staff development and the BMT leadership pipeline.

The programme is focused on enhancing BMT supervisors' people management capabilities. Based on the findings of several focus group discussions, four modules were designed which addressed the top identified leadership

needs. Modules One and Two were launched in late September and early November 2020 respectively. We aim to have all targeted BMT leaders complete the programme within four years.

SUSTAINABLE DEVELOPMENT REPORT 2020		87

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

People

Progress	Employment Profile	Talent Attraction	Talent Retention
Safety, Health and Wellbeing	Diversity and Inclusion	Volunteering

Safety, Health and Wellbeing

We regard health and safety as an indispensable part of our business. The scope of our Health and Safety Policy covers our employees, contractors, tenants, and visitors, including any person whose work or workplace is controlled by the Company. The policy specifies our commitment to achieve zero harm through demonstrating solid leadership and effective management of occupational health and safety in the design, planning and conduct of all business activities.

Safety, Health and Wellbeing is an integral part of our business and our SD 2030 Strategy. The relevant SDG is:

SDG 3

Ensuring healthy lives and promoting wellbeing.

Safety Management Systems

The Safety Steering Committee in Hong Kong, which is chaired by our Health and Safety Manager and our Safety Working Groups, meets periodically to monitor and evaluate the Company's safety performance. In the Chinese mainland, the Safety Working Group, chaired by the Director of Technical Services and Sustainable Development, holds regular meetings to monitor and evaluate the Company's safety performance. Our Safety Working Groups in Hong Kong and the Chinese mainland include employee representatives from our technical and building management teams in each portfolio.

In accordance with the Safety Management Systems (''SMS''), all our employees are required to immediately report any workplace hazards to their supervisors. We regularly conduct inspections to identify potential workplace hazards and assess risks. Follow-up actions are then carried out to prevent accidents and maintain safe workplace conditions in our buildings, equipment and facilities. The results of our inspections are reported to the Safety Steering Committee and we monitor the progress of any follow-up actions.

We have also implemented accident investigation programmes to identify the causes of accidents so that we can adopt preventive measures to avoid reoccurrence. Managers of our business units at a supervisory level or above issue accident reports once formal investigations are completed.

As at 31st December 2020, the SMS in six of our properties in Hong Kong portfolio and four properties in our Chinese mainland portfolio comply with the new and more stringent ISO 45001:2018 standard.

GRI

403

HKEX Aspect B2 KPI B2.3

SUSTAINABLE DEVELOPMENT REPORT 2020		88

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

People

Progress	Employment Profile	Talent Attraction	Talent Retention
Safety, Health and Wellbeing	Diversity and Inclusion	Volunteering

2020 Health and Safety Performance

Since we began to disclose health and safety information in 2003, we have maintained a record of zero workplace fatalities of our employees. There have also been no confirmed incidents of non-compliance with relevant laws or regulations relating to the provision of a safe working environment and the protection of employees from occupational hazards which have a significant impact on Swire Properties.

One of our 2020 KPIs is to maintain a LTIR below 2.0 for our employees. As part of our management approach to prevent workplace accidents, we conducted education and awareness talks for our employees tailored for different areas of our business, such as managing deliveries that involve a truck- mounted crane for frontline employees in our Hong Kong portfolio, slip, trip, and fall ("STF") prevention in our Chinese mainland portfolio and construction safety, working at height and prevention of heat stroke for workers at our construction sites.

In 2020, our LTIR decreased by 23.3% compared to 2019 and our lost day rate ("LDR")13 increased by 12.8% compared to 2020. In response, we have carried out corrective measures and reviewed the compulsory induction safety training for our Chinese mainland frontline staff.

Employee LTIR and LDR Trend

201820192020

	1.47	1.63	1.25
LTIR	↑ 2.8%	↑ 10.9%	↓ 23.3%

	Change year-on-year	Change year-on-year	Change year-on-year

	54.47	43.28	48.80
LDR	↑ 12.6%	↓ 20.5%	↑ 12.8%
	Change year-on-year	Change year-on-year	Change year-on-year

HKEX

KPI B2.1, B2.2

Employee LTIR and LDR 2020, by portfolio

	LTIR	LDR

Hong Kong	1.0	55.63

Chinese mainland	0.62	25.05

Miami, U.S.A.	0	0

Hotel	2.07	59.80

13 Number of lost scheduled working days per 100 employees per year.

SUSTAINABLE DEVELOPMENT REPORT 2020		89

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

People

Progress	Employment Profile	Talent Attraction	Talent Retention
Safety, Health and Wellbeing	Diversity and Inclusion	Volunteering

Internal Health and Safety Performance Awards

In January 2019, we launched an internal awards scheme in Hong Kong and the Chinese mainland to commend our management offices for outstanding health and safety performance, hoping that the scheme will further strengthen our safety-oriented culture.

This scheme gives out several awards, including:

The Zero Lost Time Injury Award (''Zero LTI Award''), which is based on a management office's health and safety performance. There
are three categories for this award: zero lost time injury for 180 days, 500 days and 1,000 days. This year, Sino-Ocean Taikoo Li Chengdu, INDIGO and Taikoo Li Sanlitun in the Chinese mainland and Pacific Place and Citygate in Hong Kong received the 180 days Zero LTI Award, while Taikoo Hui in Guangzhou and Island Place in Hong Kong received the 500 days Zero LTI Award.
The Outstanding Health and Safety Performance Award, which is given to the management office with the best health and safety management at work for that year. The 2019 award was presented to both Taikoo Li Sanlitun in Beijing and Cityplaza in Hong Kong.
The annual Emergency Drill Video Contest, organised for the past three years, documents emergency responses in different situations, ranging from fire control and helping passengers trapped inside an elevator, to a rescue mission in a confined space. This year's contest was won by Taikoo Hui in Guangzhou.

SUSTAINABLE DEVELOPMENT REPORT 2020		90

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

People

Progress	Employment Profile	Talent Attraction	Talent Retention
Safety, Health and Wellbeing	Diversity and Inclusion	Volunteering

Safety Training

Our 2020 KPI of increasing total occupational health and safety ("OHS") training hours by 5% when compared to the baseline year of 2015 has been achieved and exceeded. In 2020, we delivered approximately 23,870 OHS training hours. The training covered a range of OHS topics, including STF prevention, managing deliveries that involve a truck-mounted crane, working at heights and the safe use of cutting devices.

Looking beyond this target, we designed an e-learning platform for senior management to receive compulsory OHS training. This platform was launched in March 2019 and has now achieved a 100% completion rate. In 2020, we expanded this e-learning platform to include all frontline and office employees. We aim to have 100% of our employees receive this training in the near future. This compulsory programme was designed for all our employees across all business units, aiming to enhance health and safety knowledge, promote greater understanding of the Company's existing health and safety practices, and foster a strong health and safety culture.

In the Chinese mainland, we provided training for our senior management and line managers focusing on communicating safety priorities and demonstrating leadership on OHS issues. We conducted emergency response drills covering security management, crowd management and facilities management, which aimed to improve our emergency response capabilities across our Chinese mainland portfolio. We also organised a fire safety video competition, a safety sport event and safety quiz activities to reinforce this training and boost engagement.

Electric Working Platform at Cityplaza Mall

To reduce the inherent risks involved in using heavy ladders and manual working platforms, an electric working platform was purchased by Cityplaza to make daily maintenance work safer and easier. The new platform can be used in most areas of the mall due to its compact size and extensive reach. Strong and sturdy, the platform can accommodate two workers at a time - boosting efficiency as well as safety.

SUSTAINABLE DEVELOPMENT REPORT 2020		91

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

People

Progress	Employment Profile	Talent Attraction	Talent Retention
Safety, Health and Wellbeing	Diversity and Inclusion	Volunteering

Employee Health and Wellbeing

We value our employees and work to improve their health and wellbeing through a wide variety of events and activities both in and out of the office. These events not only contribute to employee health and wellbeing, but also help build rapport between employees and increase the level of employee engagement.

Supporting the Mental and Physical Health of our Employees

Every office in each of our portfolios recognises the importance of ensuring the wellbeing of their employees. As such, our offices have created tailored programmes and campaigns which support mental and physical health in different and locally relevant ways.

We provide information to employees via the Company's intranet, covering a range of topics relating to healthy work practices and office safety. We also conduct, on request, workstation assessments of our employees' workstation ergonomics, screen illumination and visual comfort.

In addition, we provide counselling services and learning opportunities through our Employee Assistance Programme, which offers in-person counselling and 24-hour telephone support from relevant professionals. We also host regular events for our employees, such as luncheons and training sessions, to promote physical, mental and emotional wellness and work-life balance.

Maintaining employee health and wellbeing is an unvarying priority for us. During the COVID-19 pandemic, running our wellness programme in the usual fashion was a challenge. Despite this situation, it was important for our employees to continue to access and participate in the programme. Thus, we moved from conducting face-to-face workshops and sharing sessions to virtual sessions and activities. Interest club activities were incorporated into a wider wellness programme, making these activities accessible to all staff, not solely club members.

SUSTAINABLE DEVELOPMENT REPORT 2020		92

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

People

Progress	Employment Profile	Talent Attraction	Talent Retention
Safety, Health and Wellbeing	Diversity and Inclusion	Volunteering

Highlights of Employee Wellness Programme 2020

The mental and physical health of our employees is always a top priority for us; and was particularly so during the pandemic. Throughout the year, we organised various virtual activities and sharing sessions to keep staff spirits up.

In Hong Kong, we ran a series of "Let's Stay Fit@ Home" one-minute exercise sessions; a "DIY Mask and Mask Keeper" workshop; and a "Mindful Mandala Coaster Making Workshop" where participants shared mental healing tips with each other.

At EAST Hong Kong, we ran a Global Wellness Month campaign between June and September 2020. Kicking off on Global Wellness Day, 13 June, the campaign featured various wellness-related events like a wellness social photo campaign, Health Food Month in July, and a number of wellness workshops designed to strengthen the physical and mental wellness of employees.

At The Upper House, we used the Global Wellness Day date to hold the "613 Challenge" for our employees. The 6-day long challenge asked our employees to walk 10,000 steps per day, go vegetarian for 3 meals or hold a plank for one minute on any 3 days, with those completing the challenge receiving a wellness pack. On Global Wellness Day itself, the team was given a wellness drink and several wellness tips.

In the Chinese mainland, at The Middle House, 12 employees representing every department joined the hotel's Green Team. A "green wall" was set up in the staff corridor which listed numerous sustainability ideas and initiatives as well as a leaf painting created by employees.

New Staff Amenity Room at Taikoo Hui in Guangzhou

In June 2020, a new staff amenity room was launched at Taikoo Hui in Guangzhou, aiming to keep employees healthier, happier and more productive. The elaborately designed, smart tech- powered centre, called "SWITCH", is equipped with various facilities for exercise and relaxation, including a gym, a self-serve bar, massage chair, video games and a darts board.

Employees can use a mobile app-based mini- programme to book a timeslot to use the gym, with access provided by scanning a QR code - reducing management costs and improving hygiene.

SUSTAINABLE DEVELOPMENT REPORT 2020		93

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

People

Progress	Employment Profile	Talent Attraction	Talent Retention
Safety, Health and Wellbeing	Diversity and Inclusion	Volunteering

Welcoming New SPL Offices

In 2020, we opened two new Swire Properties offices in the Chinese mainland, at INDIGO in Beijing and Sino-Ocean Taikoo Li Chengdu.

INDIGO

Swire Properties' new Beijing office in ONE INDIGO, spread over more than 21,500 sq ft, embraces and embodies the Company's SD philosophy:

The office materials and furnishings are as environmentally-friendly as possible - the
carpet, for example, is woven from recycled fishing nets.
Old office furniture was donated to Baihe Town Middle School in Hebei Province.
An advanced intelligent lighting system automatically adjusts ambient light according to the time of day and amount of natural daylight.
All waste disposal receptacles require recyclables to be sorted.

Sino-Ocean Taikoo Li Chengdu

The new office, opened at the end of 2020, operates on a "community concept" and includes collaborative areas that enable enhanced communication and engagement - for example staff workspaces with lower partitions and a cafeteria designed as a casual outdoor café. Other features include a nursery and a gym to enhance wellness and increase convenience. The new office is applying for a WELL Gold certification to solidify its environmental and people-friendly credentials.

SUSTAINABLE DEVELOPMENT REPORT 2020		94

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

People

Progress	Employment Profile	Talent Attraction	Talent Retention
Safety, Health and Wellbeing	Diversity and Inclusion	Volunteering

Diversity and Inclusion

Diversity and Inclusion is a focus area in which we aspire to provide leadership. The relevant SDG is:

SDG 5

Achieving gender equality and empowering women and girls.

Our commitment to promoting diversity in the workplace is documented in our Corporate Code of Conduct and our Equal Opportunities Policy, both of which are communicated to our employees through our employee handbook. Additionally, the Equal Opportunities and Diversity Councilof John Swire & Sons (H.K.) Limited, a wholly-owned subsidiary of John Swire & Sons Limited which is the parent company of the Swire Group, encourages and advocates equal opportunities and diversity across the Swire Group.

D&I Policy

Our D&I Policyreaffirms our commitment to creating an inclusive and supportive working environment for all our employees regardless of age, gender or gender reassignment, sex or sexual orientation, marital or family status, disability, race (including ethnic origin or nationality) and religious or political beliefs.

Our D&I Committee is chaired by our Director, Human Resources and reports to the Executive Committee ("EXCOM") on a quarterly basis. The D&I Committee's responsibilities include ensuring equal opportunities, advocating fair and bias-free processes for recruiting, developing and promoting our employees, and monitoring our success in achieving D&I in our workplaces. The D&I Committee also serves as a governing body to review grievances relating to discrimination.

Percentage of Management Positions Held by Women

(as at 31st December 2020)

51%		39%

of management positions		of EXCOM members are
held by women		women

GRI

405

HKEX

Aspect B1

2020 Gender Pay Ratio

1 to 1.05

(female to male)

SUSTAINABLE DEVELOPMENT REPORT 2020		95

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

People

Progress	Employment Profile	Talent Attraction	Talent Retention
Safety, Health and Wellbeing	Diversity and Inclusion	Volunteering

Flexible Working Policy Initiative

Seeking to develop a truly flexible working environment, our Flexible Working Policy was launched on 1st July 2019. We introduced a Staggered Working Hours initiative to allow employees to arrive or leave the office at flexible times provided they are present during specified core working hours. Employees are able to balance their work with their personal commitments, helping advance our goal of building a more people-centric workplace culture. We believe that staggered working hours empower our employees to be more creative and productive.

To augment this policy, we also launched the Sabbatical Leave Policy on 1 January 2020. Sabbaticals allow an employee an extended period away from work, during which time they may recharge themselves, adjust to any life transitions, dedicate time to family matters, or develop their skill sets in various areas. Although this is unpaid leave, employees on sabbatical still enjoy selected staff benefits such as medical, training and recreation facilities.

During the COVID-19 pandemic, we initiated several other working alternatives across our offices, including distributed work, work-from-home, and telecommuting arrangements. These were designed to minimise large gatherings of people and avoid cross-infection situations. Additionally, any staff members who travelled outside of their home city in the Chinese mainland could only resume work after completing a 14-day quarantine upon their return.

Women's Inspire Networks

Our Women's Inspire Networks, initiated by members of our Diversity and Inclusion Committee, are business networks that aim to connect people and create a community in support of women working for professional firms and companies based in a local area. Through purposeful events and stakeholder engagement, these networks encourage collaboration in a supportive and positive environment to create a network of people who support, enrich and inspire each other in the pursuit of gender equality.

The first network, the Taikoo Women's Inspire Network ("Taikoo WIN"), was established in 2019 by the Company and two of our Taikoo Place tenants. Taikoo WIN currently has over 300 individual members and 30 corporate members based in Taikoo Place. The Pacific Place Women's Inspire Network ("PP WIN") was formed in May 2020 to support women working in the Pacific Place area. PP WIN aims to hold its official launch in early 2021.

SUSTAINABLE DEVELOPMENT REPORT 2020		96

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

People

Progress	Employment Profile	Talent Attraction	Talent Retention
Safety, Health and Wellbeing	Diversity and Inclusion	Volunteering

Pink Friday

On 20 November, Swire Properties joined over 60 companies in Hong Kong to celebrate the LGBT+ community and the Company's collective drive for inclusion in the Pink Friday event. Our staff members participated by wearing pink to show their support for this often-invisible community. A virtual "Best Dressed Show" was held, with prizes awarded for the best dressed individual and best dressed team. We celebrated Pink Friday with Taikoo Place office tenants at Tong Chong Street Market. Themed delicacies were

also sold from 16 to 20 November at several Tong Chong Street Market stalls, with people wearing pink being given a discount on these items on 20 November.

SUSTAINABLE DEVELOPMENT REPORT 2020		97

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

People

Progress	Employment Profile	Talent Attraction	Talent Retention
Safety, Health and Wellbeing	Diversity and Inclusion	Volunteering

Board Diversity Policy

Our Board Diversity Policyrecognises the value of diversity in the composition of our Board and endorses the principle that our Board should cultivate a balance of skills and experience as well as a diversity of perspectives that are aligned with our business.

Board Diversity

(as at 31st December 2020)

By gender

2020

Male 67%

2019

Male 67%

2018

Male 64%

2020

Female 33%

2019

Female 33%

2018

Female 36%

	By age group
2020	2020
30 to 50 years old		Over 50 years old
25%	75%
2019	2019
30 to 50 years old		Over 50 years old
25%		75%
2018	2018
30 to 50 years old		Over 50 years old
36%	64%

		By local/non-local
2020				2020
Local 67%
			Non-local33%
2019
			2019
Local 50%				Non-local50%

2018				2018
Local 45%				Non-local55%
2020	2019		2018

Additional information about the diversity of our Board members is available in the Swire Properties Annual Report 2020

SUSTAINABLE DEVELOPMENT REPORT 2020		98

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

People

Progress	Employment Profile	Talent Attraction	Talent Retention
Safety, Health and Wellbeing	Diversity and Inclusion	Volunteering

Volunteering

Our Community Ambassador Programme is a channel for our employees to contribute their time and skills to various social and environmental causes. To encourage active participation, our employees can nominate less well-known Hong Kong-based community organisations for us to support through the Community Caring Fund. Our employees are eligible to receive one extra day of leave for every ten hours of voluntary service completed, capped at two days per year.

A Growing Community of Ambassadors

Since its establishment in 2001, our Community Ambassador Team has grown from 40 members to more than 4,000 and continues to attract support from our employees' families and friends, as well as our business partners, tenants, customers and other Swire Group companies.

Our Community Ambassador activities in Hong Kong focus on youth development, social inclusion, community-building, and supporting the elderly. As our Chinese mainland portfolio continues to grow, we plan to organise more cross-city volunteer initiatives to strengthen the connections between our Hong Kong and Chinese mainland Community Ambassadors and our joint volunteering efforts. However, necessary restrictions placed on travel and gatherings during the pandemic curtailed these actions across our portfolio during 2020. We look forward with hope and excitement to the time when we can resume such initiatives.

Community Ambassador Programme Volunteer Hours

43					>2,000


Activities supported					Total volunteer hours

Community Ambassador Programme Volunteer Hours, by focus area

Elderly 7%

Community 43%

Health and Wellbeing 11%

Environmental 39%

GRI

413

HKEX Aspect B8 KPI B8.1, B8.2

SUSTAINABLE DEVELOPMENT REPORT 2020		99

MENU	PLACES	PEOPLE	PARTNERS	PERFORMANCE	PERFORMANCE
(ENVIRONMENT)	(ECONOMIC)

People

Progress	Employment Profile	Talent Attraction	Talent Retention
Safety, Health and Wellbeing	Diversity and Inclusion	Volunteering

SEWomen "Reusable Mask + Holder" Initiative

Since the start of 2020, wearing a face mask has become an essential part of daily life for everyone. Embracing this new reality, the Swire Properties Community Caring Fund partnered with seven Hong Kong-based social welfare organisations to create the "Reusable Mask

Holder" initiative, which reduces waste by offering people a sustainable choice: using reusable masks for non-high-risk locations.

SEWomen, a social initiative founded in 2020,

gathered more than 80 local women who sewed approximately 30,000 reusable masks that were sold online and given away to people in need. The programme also provided the people who sewed with opportunities to earn income from the masks they produced. After the success of this initiative, SEWomen will continue to empower more local women by offering job opportunities and showcasing their expertise and talents, in partnership with our long- term NGO partner, the Hong Kong Young Women's Christian Association.

"Dial a Lo Yau Gei" Programme

As Swire Properties colleagues began to work from home following the COVID-19 outbreak, our Community Ambassadors took the opportunity to contact elderly people in the local community to provide reassurance and help them stay healthy. The "Dial a Lo Yau Gei Programme", organised in conjunction with the Hong Kong Young Women's Christian Association, involved phoning senior citizens - "lo yau gei" in Cantonese - to pass on advice about how to deal with the outbreak, such as the importance

of good hygiene and when to seek medical help. Over three sessions, held in February, March and August, a total of 121 volunteers spoke to 242 senior citizens.

SUSTAINABLE DEVELOPMENT REPORT 2020		100

This is an excerpt of the original content. To continue reading it, access the original document here.

Attachments

Original document
Permalink

Disclaimer

Swire Properties Ltd. published this content on 09 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 April 2021 09:13:09 UTC.

Market Closed - Hong Kong S.E. Other stock markets 04:09:00 2024-05-03 am EDT			5-day change	1st Jan Change
16.54 ^HKD	+0.85%		+3.50%	+4.68%

Apr. 22	Swire Properties Limited Announces Board Changes, Effective 7th May 2024	CI
Apr. 10	Swire Properties to Close First Hotel in Beijing to Make Way for Retail Development	MT

Swire Properties Limited

Equities

1972

HK0000063609

Real Estate Development & Operations

Swire Properties : Sustainable Development Report 2020

Latest news about Swire Properties Limited

Chart Swire Properties Limited

Company Profile

Income Statement Evolution

Ratings for Swire Properties Limited

Analysts' Consensus

EPS Revisions

Quarterly earnings - Rate of surprise

Sector Other Real Estate Development & Operations

	1st Jan change	Capi.
SWIRE PROPERTIES LIMITED	+4.68%	12.39B
MITSUI FUDOSAN CO., LTD.	+40.41%	29.66B
SUN HUNG KAI PROPERTIES LIMITED	-11.60%	27.69B
CHINA RESOURCES LAND LIMITED	+7.86%	27.57B
DLF LIMITED	+20.90%	26.07B
MITSUBISHI ESTATE CO., LTD.	+49.25%	24.02B
CHINA OVERSEAS LAND & INVESTMENT LTD.	+13.23%	21.83B
EMAAR PROPERTIES	-1.52%	18.77B
SUMITOMO REALTY & DEVELOPMENT CO., LTD.	+28.90%	16.76B
CK ASSET HOLDINGS LIMITED	-13.27%	15.28B