###### Sustainability Governance
The Group acknowledges the need for effective and strong sustainability governance, including clear definitions of accountabilities, roles and responsibilities among its various parties. Our sustainability governance is summarized as follows:
###### Boards Audit Committees Boards of Directors
Oversight of Oversight of ESG/sustainability
risk management system strategy with view to long-term
development of Group
###### Top Management
Strategic direction and
management including of
enterprise risks and ESG KPIs
###### Enterprise Risk Management Sustainability Team Sustainability Working Group Steering Committee (SSC)
Identify and manage Detailed strategy formulation, Support strategy development
enterprise-level ESG risks coordination and implementation and ESG KPIs
###### Subcommittees
(e.g. Sustainable Finanace
Subcommittee)
In 2021, we continued to strengthen and refine our sustainability governance at all levels.
###### Board Engagement
The Boards of Directors of Hang Lung Group and Hang Lung Properties (the "Boards") have overall responsibility for the
Group's ESG strategy and reporting. They also provide oversight of sustainability trends, risks and opportunities affecting
the long-term development and positioning of the Group.
In response to the requirements of the HKEX ESG Reporting Guide, the Boards issued a Joint Statement on Oversight and
[Management of Environmental, Social and Governance Issues (the Joint Statement) in November 2020. This statement](https://www.hanglung.com/getmedia/f256df3c-7bfe-4be8-9c02-900ac27d7731/20210106_joint-boards-statement-on-esg.pdf)
elaborates on the Boards' ESG management approach and strategy, as well as their role in reviewing progress against
ESG-related goals and targets.
The Boards' engagement on sustainability issues is robust. The Vice Chair of the Boards is also the executive responsible
for overseeing the Group's Sustainability Steering Committee and its Sustainability Team, the department dedicated to
sustainability. In November 2021, the Vice Chair joined a plenary of the Asia Corporate Governance Association on the
topic "Balancing the E, S and G: What smart corporate leaders need to know," and that month he also joined a panel
discussion on "Advancing Net Zero" organized by the Hong Kong Green Building Council.
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_"We continue to strengthen our_
_sustainability governance to support_
_our leadership ambitions."_
– Adriel Chan,
Vice Chair and Chair of SSC
The Sustainability Team reported twice to the Boards in 2021. It also conducted two separate briefings in late 2021 on the
Science Based Target initiative's Net-Zero Standard that were voluntarily attended by a majority of the Boards' members.
###### Top Management
The top management of the Group provides
oversight of the Group's sustainability
performance and progress towards achieving
its long-term sustainability goals and targets,
and its annual sustainability-related KPIs. The
Sustainability Team reports to the Vice Chair
and the CEO at least once a month. In addition,
the direct reports of the CEO and Vice Chair all
have sustainability-related KPIs for themselves
and their departments against which their
performance is measured annually.
###### Sustainability Steering Committee
Sustainability is a far-reaching, multi-disciplinary
concept impacting every part of our business.
The Sustainability Steering Committee (SSC),
currently chaired by the Vice Chair of the
Group, and comprising 13 executives from major
departments, meets regularly to ensure that
understanding and expectations on sustainability
are aligned across the Group.
The SSC also, supports long-term strategy development, the
implementation of plans and progress tracking. The Terms of
Reference of the SSC are available on our website. In 2021, the SSC
agenda and achievements included:
- A progress review of the 2021 strategic ESG Key Performance
Indicators ("Strategic ESG KPIs")
- Endorsement of the 25 x 25 Sustainability Targets and
2022 Strategic ESG KPIs
- Endorsement of the Group's plans related to the Science Based
Targets initiative
- Several governance enhancements related to sustainability
Numerous other ad-hoc meetings on sustainability issues also
occurred among various SSC members and other colleagues
throughout the year.
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###### Sustainability Team
Our Sustainability Team serves as a central
function supporting the entire business in
advancing its sustainability leadership ambitions.
Led by the General Manager – Sustainability,
it reports directly to the Vice Chair. In addition
to reporting regularly to the Boards and Top
Management, the Team works with colleagues
across all aspects of the business to ensure we
pursue our ambitious goals, targets and strategic
ESG KPIs in a coordinated fashion. It also reports
to the Enterprise Risk Management Working
Group, as risk owner for the Group's response to
climate change transition risks and physical risks.
Furthermore, in 2021 the Sustainability Team
reported four times at "Key Corporate Project
Management" meetings, held quarterly and
attended by department heads and senior
managers from nine departments. Each
meeting highlights key sustainability issues and
opportunities for the business's projects under
development. They also provided detailed
briefings to colleagues on climate mitigation,
climate adaptation, sustainable procurement and
other topics. In addition, the Team mentored two
groups of Management Trainees on sustainability
projects culminating in their presentations to
the CEO. Lastly, they provided sustainability
content for several internal business conferences,
including the company-wide Hang Lung
Management Conference.
###### Sustainable Finance Subcommittee
The Sustainable Finance Subcommittee (SFS)
reports to the SSC. Chaired by the Chief
Financial Officer, the SFS is comprised of six
members, including executives responsible
for finance, corporate sustainability, project
planning and construction, and operations.
The SFS meets regularly to discuss the latest
market developments and the Group's plans
for sustainable finance. It oversees the usage
of sustainable finance and approves eligible
projects as required by Hang Lung Properties
Green Finance Framework.