Hang Lung Properties : 2022 Sustainability Report

This is the 11th sustainability report (the "Report") for Hang Lung Properties Limited ("the Company" or "Hang Lung Properties," stock code: 00101) and its subsidiaries (collectively known as "Hang Lung" or "the Group").

As the property arm of Hang Lung Group Limited ("Hang Lung Group," stock code: 00010), the Group produced and issued this Report to disclose information transparently to our stakeholders on the Group's material sustainability issues from January 1, 2022 to December 31, 2022, unless otherwise specified. This Report follows our Sustainability Report 2021, which was published online in May 2022.

Scope of this Report

This Report focuses primarily on the Group's management approach to material sustainability issues. Economic and social key performance indicators (KPIs) reported across our material topics cover our entire operations. To ensure the disclosed data reflect the normal operating conditions of the properties, unless otherwise specified, the reported environmental KPIs exclude new properties that have been operated by the Group for less than one year. Compared to our Sustainability Report 2021, the KPI reporting scope in this Report has been expanded to include Heartland 66 in Wuhan. It opened in March 2021 and reached significant occupancy levels in 2022, so a full year of meaningful operational performance data is available for 2022. The reporting scope for environmental KPIs also excludes sold properties. The properties covered by the reported environmental KPIs include 24 properties in Hong Kong, as well as ten in mainland China. For the full list of properties, please refer to Appendix 5.

We also report on our progress towards our sustainability targets. In selecting base years for such targets, we consider a number of factors including data availability, timeliness, and representativeness.

Reporting Standards and Assurance

This Report has been prepared in accordance with the Global Reporting Initiative (GRI) Standards with content defined based on the principles of stakeholder inclusiveness, sustainability context, materiality, and completeness. It also complies with the Environmental, Social and Governance ("ESG") Reporting Guide contained in Appendix 27 of the Rules Governing

the Listing of Securities on The Stock Exchange of Hong Kong Limited ("HKEX") (ESG Reporting Guide). The adoption of these reporting standards ensures that the content presented is accurate, balanced, clear, comparable, reliable and disclosed in a timely manner. We identified material ESG topics through ongoing stakeholder engagement and annual materiality assessment. Data are reported consistently and presented in a manner that allows for meaningful comparisons over time, and the methodologies used for calculations are described in the Performance Tables to enable public review. A list of properties included in the reporting boundary is provided in Appendix 5to allow for comparison. The Report also reflects both positive and negative aspects of our performance to enable an unbiased and reasoned assessment. Information in this Report has been independently verified by the British Standards Institution against these aforementioned standards. Please refer to the Independent Assurance Opinion Statement in Appendix 6.

In addition, we support the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and have adopted the framework recommended by the TCFD to discuss, in Appendix 8, the risks and opportunities brought by climate change, the potential impacts on our business, and the actions we are taking to mitigate risks and capture related business opportunities. Lastly, we have also made our best efforts to report against metrics required by the Sustainability Accounting Standards Board (SASB) for the real estate sector. Please refer to Appendix 9for details.

Headquartered in Hong Kong, Hang Lung Properties develops and manages a diversified portfolio of world- class properties in Hong Kong and the nine Mainland cities of Shanghai, Shenyang, Jinan, Wuxi, Tianjin, Dalian, Kunming, Wuhan and Hangzhou. With its luxury positioning under the "66" brand, the Group's Mainland portfolio has established its leading position as the "Pulse of the City." Hang Lung Properties is recognized for its growing leadership role in enhanced sustainability initiatives in real estate as it pursues sustainable growth by connecting customers and communities. For details of our business performance and outlook, please refer to our 2022 Annual Report.

Our Vision

We create compelling spaces that enrich lives

Our Values

We live up to our brand motto of We Do It Well by focusing on

Integrity: We maintain the highest standards of integrity by operating according to principles of fairness, mutual respect and adherence to business ethics.

Sustainability: Together with our pursuit of sustainable business growth, we promote the long-term development and wellbeing of our communities

Excellence: We are committed to delivering the finest services and experiences that surpass the expectations of our customers, tenants and communities.

Openness: We maintain an open and inclusive culture that respects diverse opinions. We strive to embrace new ideas and cultivate innovative thinking.