Sustainability Report 2025
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About Swire Pacific

Our Approach

Sustainability Strategy

Sustainable development is a strategic objective for Swire Pacific. Using natural resources responsibly, minimising waste and pollution, and investing in our people and communities are fundamental to our ability to create long-term value for shareholders.

To promote sustainability in our businesses and management practices, we have a sustainable development strategy, renamed this year to SD 2050. A group-level strategy facilitates best practice sharing and consistent implementation of sustainability. It also allows us to better communicate the impact we are having as a group. Our strategy addresses five areas and is supported by policies and targets. All operating companies are expected to make progress in the five areas.

The revised name underscores our long‑term environmental commitments to 2050, including our objectives on net‑zero emissions, zero waste to landfill and water neutrality. The revised name also reflects closer alignment with the long‑term strategic priorities of our operating companies. Swire Pacific's existing targets and commitments under the previous strategy remain in place.

Governance of Sustainable Development

Our Board, led by its Chairman, is actively engaged in overseeing the formulation and implementation of the Group's sustainability strategy. It is ultimately accountable for sustainability matters at Swire Pacific including progress against our 2050 sustainability commitments and 2030 interim targets. The Group Finance Director of Swire Pacific has responsibility for the Group sustainability strategy, which includes its approach to climate change.

The Board is kept informed of sustainability-related risks and performance by the Group Risk Management Committee (GRMC) and the Swire Group Sustainability Committee (SGSC), both of which report to the Board via the Audit Committee. The Board monitors performance through quarterly reports on ESG matters as well as monthly reports on health and safety. It also reviews internal and external audit reports and feedback from external stakeholders. The Finance Director briefs the Board and Division Heads twice a year on sustainability matters and reports periodically to the Audit Committee. The Chairman, Finance Director, and Divisional Heads meet at least twice a year to consider sustainability matters. These meetings provide direction and oversight to the SGSC.

All Board members have relevant industry experience in one or more of the real estate, aviation, food and beverage, or trading and industrial sectors. All of our Executive Directors have had executive or board experience with one or more of our subsidiaries. Having the right blend of skills and experience ensures the Board can effectively deal with current and emerging risks and opportunities. The Board receives training materials or direct training annually. In 2025, the Board received training on ESG including risk and ESG disclosure. Further information on our board diversity, processes, and training is available in the Corporate Governance section of the Swire Pacific Annual Report 2025.

The Board provides oversight of our risk management framework which covers our sustainability risks, including climate-related and nature-related risks and sustainability--related opportunities. Swire Pacific conducts regular risk assessment processes utilising our Enterprise Risk Management (ERM) Framework, to identify, evaluate, manage, and report significant business risks, including sustainability-related risks, throughout the year. This culminates in a dynamic Corporate Risk Register which is reviewed by the Audit Committee. The Audit Committee's Terms of Reference include oversight of our financial reporting, risk management, and internal control systems as well as ESG matters in support of the Board's mandate. Refer to ESG risk management for a detailed description of our risk management governance and processes.

Each operating company has adopted an appropriate organisational structure to manage its key sustainability issues and to monitor and report on its performance. Operating companies are required to submit to the Group Sustainable Development function planned sustainable development capital expenditure budgets that are intended to drive progress towards sustainability targets. In turn, the Sustainable Development function provides the Board of Directors with quarterly reports on performance against sustainability targets and key initiatives being implemented by the operating companies.

Performance on health and safety is reflected in the remuneration of the Directors of our Operating Companies. Swire Properties and our associate company the Cathay group link decarbonisation metrics to Chief Executive remuneration. The linkage of Swire Pacific directors’ remuneration to sustainability metrics is subject to an ongoing review.

Group departments convene committees and working groups comprising subject matter experts from our operating companies to exchange information on best practices, with a view to developing specific policy recommendations, improving efficiency, tracking progress against targets, and managing risks.

Following the year end, the GRMC and SGSC approved enhancements to the Group’s governance arrangements for risk management and sustainability to further improve coordination, reduce duplication and deepen integration with existing governance bodies. In doing so, a number of committees, risk forums and working groups were concluded, as their responsibilities have become embedded within other governance structures and in the operations of our operating companies. These adjustments maintain strong oversight across the Group while supporting more effective and coherent governance.

Formal committees relevant to our sustainability strategy include the Swire Group Environmental Committee (SGEC), the Health and Safety Committee (both of which are overseen by the GRMC and SGSC), and the Diversity & Inclusion Steering Committee and Philanthropy Council (which report directly to the Chairman).

Swire Pacific's Sustainable Development function oversees the Group's sustainability activities. Its dedicated team of sustainability professionals coordinates the SGEC and working groups responsible for defining our climate, nature (waste, water), sustainable supply chain approaches, and our ESG data management approach. Group Risk Management convenes a Health and Safety Committee. The People and Philanthropy departments also have SD 2050 responsibilities.

The Head of Sustainable Development reports monthly to the Finance Director, who is an Executive Director of the Company. The Sustainable Development function advises the Group's strategic leaders and the Board of key developments and emerging risks related to sustainable development. It is responsible for setting Group environmental policies and targets, monitoring the implementation of our sustainability strategy and our ESG policies, and internal and external reporting on ESG matters.

Swire Pacific sets targets on strategic sustainability topics as those topics matter to our businesses and stakeholders, may become financially material, and are increasingly linked to regulatory and market expectations. Doing so helps manage future risk, build trust, and show strategic alignment with long‑term sustainability trends. All Group targets are approved by the Board.

The Group Internal Audit Department provides independent and objective assurance that the sustainability policies and risk management processes are implemented properly and operating effectively and that the risks which could impact our ability to achieve our business objectives are being properly identified, assessed, and mitigated.

ESG Policies

Our Sustainable Development Policy aims to ensure our businesses act in a manner consistent with the 1987 Brundtland Commission’s definition of sustainable development: meeting the needs of the present without compromising the ability of future generations to meet their own needs.

Our ESG policies include the five sustainability strategy pillars and go beyond them, covering, for example, human rights, biodiversity, and sustainable procurement. We regularly review our policies relating to sustainability. Where we identify policy gaps, we create new policies to guide the Group’s approach. Policies are developed at the working group level, before review by the SGEC and approval by the SGSC and GRMC. The Board reviews and approves all policies.

Our operating companies are required at a minimum to adopt Group sustainability policies. They are permitted to introduce additional policy clauses to those outlined in Group policies. All policies related to sustainable development can be downloaded from our company website.

Further reading
Swire Pacific ESG Policies

Transparent and Reliable Data

As a growing and diversified group of businesses, tracking sustainability performance and setting targets can be challenging. To address this, we have a reporting methodology which deals with the scope, boundaries, and calculations of the relevant data. We have established internal controls around our ESG data and processes in line with the COSO ICSR Framework, and have data collection protocols for carbon, waste, and water, which standardise our data calculation methodology, and include variance checks and procedures for dealing with abnormal data.

We receive third party assurance on key sustainability performance data points. We are also working with a third party to validate the robustness of additional data with a view to expanding the scope of our assured data in future reporting cycles.

Further reading
Swire Pacific Reporting Methodology 2025

Resourcing of Sustainability Activities

At Group and operating company level we employ specialist subject matter personnel. We invest as a standard business practice in equipment and processes that contribute to improved energy, water and waste management. Sustainability costs are often integrated into standard investment budgets and difficult to disaggregate without substantial effort. Where information can be disaggregated, the Board monitors investments through the reporting of 3- and 10-year capital and operational expenditure budgets for sustainability-related activities.

Sustainable Development Fund

Our Sustainable Development Fund (SD Fund) offers financial support to operating companies for projects which can provide long-term environmental benefits but cannot be justified by reference to our cost of capital targets. Up to HK$100 million is available annually to support projects that reduce the carbon, water, and waste footprints of our operating companies, in line with our targets.

The SD Fund has been supporting our operating companies since 2016. It provides a capex bridge mechanism, a funding stream to support trials of innovative green technology solutions, and a third to support the adoption of artificial intelligence and smart metering. Operating companies invite companies and start-ups to pitch solutions to identified sustainability problems for which we have not yet found a solution. Successful applicants receive funding to pilot their solution in our operations. This approach allows us to test new technologies quickly and at relatively low cost, to determine the solutions most suited to our operations and quantify their actual environmental benefits before implementation at scale. If the pilots are successful, they are scaled up for wider use in the operating company and, if relevant, across the Group.

The SD Fund has helped accelerate SD projects across the Group, including innovative new technologies such as Direct Current Microgrids at the Taikoo Li Sanlitun shopping centre in Beijing. By the end of 2025, over HK$150 million of cumulative funding had been committed by the SD Fund to support projects at various operating companies. At the start of 2025, another stream was created for smart metering and artificial intelligence to provide accurate data and insights on energy and water usage, enabling better decision-making and enhancing operational efficiency.

Sustainable Finance

Linking ESG performance metrics and green use of proceeds to our financing demonstrates that we are serious about being a sustainable business. Swire Pacific has sustainability linked loans where the interest payable is reducible by reference to indicators of our ESG performance. Sustainable finance represented more than 58% of total financing across the Group at the end of 2025.

Swire Properties’ commitment to green financing began in 2018 with its inaugural green bond. It targeted to achieve a minimum of 50% of bond and loan facilities from green financing by 2025, and 80% by 2030. As of 31st December 2025, approximately 70% of its financing came from green bonds, sustainability-linked loans, and green loans. The proceeds have been allocated to various projects including green buildings, energy efficiency, renewable energy, and sustainable water and wastewater management.

New Life Plastics Limited, a non-wholly owned Swire Coca-Cola subsidiary, has also obtained a sustainability-linked loan.

Internal Carbon Pricing

We began implementing an Internal Carbon Pricing pilot in 2023 with Swire Coca-Cola, Swire Properties and HAECO, which contribute approximately 93% of our operational emissions. The hybrid model comprises a notional carbon fee and a shadow pricing mechanism. A notional carbon fee of US$40/tCO2e is applied to the operational emissions of each operating company for the most recent financial year. The notional proceeds of the fee are set aside as a budget for additional decarbonisation projects. The shadow pricing mechanism applies a price of at least US$100/tCO2e to emissions associated with potential projects. The intent is to quantify the impact of emissions associated with our businesses’ capital expenditure and so align the investment decision making process with our carbon reduction goals.

Sustainable finance represented

>58%

of total financing across the Group at the end of 2025

Swire Group Sustainability Committee

The SGSC oversees the management of sustainability matters relating to the Swire Pacific Group, the implementation of our sustainability strategy, and advises operating companies on related matters. The Committee consists of the Finance Director of Swire Pacific who acts as chairman, the Head of Sustainable Development and Head of Enterprise Risk Management of Swire Pacific, and the Head of Sustainable Development and the Chief Financial Officer (CFO) of each core operating company.

The Committee meets at least three times a year. It is tasked with:

  • Ensuring the Group operates sustainably with a consistent, transparent, and coordinated approach

  • Achieving sustainable growth by maintaining and enhancing the Group’s economic, environmental, human, technological, and social capital in the long-term

  • Identifying and effectively managing the Group’s sustainability-related risks and related governance in line with the Group's risk appetite

  • Adopting sustainability-related industry best practice across the Swire Pacific Group

Responsibility for achieving sustainability objectives and implementing our sustainability strategy and our ESG policies on a day-to-day basis is delegated to division heads, with oversight from specialist Group departments.

The management of risks and implementation of ESG policies are assessed by Group Internal Audit Department.

Sustainability governance structure (2025)

Swire Group Environmental Committee

The SGEC advises the SGSC on matters required to enable effective oversight and decision making related to its responsibilities. It focuses on sustainability strategy and policy, and oversees the work of the sustainability-related working groups.

The Committee, which meets at least twice each year, is chaired by the Swire Pacific Finance Director, who is responsible for the Group sustainability strategy, co-ordinated by the Head of Sustainable Development, and comprises the Head of Sustainable Development of each core operating company, with observers from Group Risk Management and Group Finance.

Diversity and Inclusion Steering Committee

The Diversity and Inclusion Steering Committee (DISC) is responsible to the Chairman of Swire Pacific. During the year it was jointly chaired by the Group People Director and the CEO, Greater China of Swire Coca-Cola, and the other members of the DISC were the HR Directors of our operating companies, the Group Head of Diversity, Equity and Inclusion, and the Head of Sustainable Development.

DISC has general responsibility:

  • to provide guidelines about diversity and inclusion to the group of companies comprising Swire Pacific and its subsidiaries, associates, and joint venture companies, and

  • to formulate policies designed to promote a diverse workforce and an inclusive working environment for all Swire Pacific Group employees, with a view to ensuring that companies in the Swire Pacific Group are regarded as employers of choice.

Health & Safety Committee

The Health & Safety Committee oversees the processes required to ensure that all operations are carried out in a manner reflecting our priority to safeguard the health and safety of our people.

It is comprised of specialists as well as managers responsible for health and safety across the operating companies, and reports three times per year to the GRMC on related performance across the Group. It is responsible for the development of Group Health and Safety policies and processes, monitoring performance and sharing divisional best practices. This committee also builds internal capability by promoting health and safety education, providing direction for related projects, and promoting wellbeing in the workplace.

Philanthropy Council

The Philanthropy Council represents the interests of the Swire Trust, the philanthropic arm of the Swire Group, and oversees its strategic direction and management. Members are strategic leaders within the Swire Group. They are appointed by the Philanthropy Council Chair based on their knowledge of the supported social causes, interest in public service, and representation of different operating companies and key functions across the Group. The Group Head of Philanthropy serves as the Secretary to the Philanthropy Council.

The Philanthropy Council's duties include reviewing and approving the annual budget of the Swire Trust, considering and approving proposals for major new projects in accordance with the Swire Trust’s core areas, ensuring that donations are spent consistent with the vision and mission of the Swire Trust, and reviewing compliance with relevant laws.

Corporate Governance

Swire Pacific is committed to ensuring that its affairs are conducted in accordance with its corporate and governance culture and values of integrity, endeavour, excellence, humility, teamwork, continuity and high ethical standards, which form a coherent set of principles that are relevant across the Company’s business and underpin everything it does. This reflects its belief that, in the achievement of its long-term objectives, it is imperative to act with probity, transparency and accountability. By so acting, Swire Pacific believes that shareholder value will be maximised in the long term and that its employees, those with whom it does business and the communities in which it operates will all benefit.

Our approach to corporate governance can be found in our Corporate Governance Code, our Articles of Association, our Board Diversity Policy, and the Swire Pacific Annual Report 2025. We are subject to the Corporate Governance Code in Appendix C1 to The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong (Hong Kong Listing Rules).

Business Ethics

Our Corporate Code of Conduct requires employees to maintain the highest standards of business ethics and to deal appropriately with each other, those with whom we do business, and the communities in which we operate. The Corporate Code of Conduct includes operating principles covering business ethics, conflicts of interest, bribery, money-laundering, fraud, procurement, record keeping, whistleblowing, health and safety, the environment, diversity, inclusion and respect in the workplace, and data privacy1.

Our joint venture partners, and associated companies, and contractors who are hired to conduct business on our behalf are expected to act in accordance with the Corporate Code of Conduct, and influence those with whom they are working to follow similar standards of integrity and ethical behaviour. The Corporate Code of Conduct and anti-corruption and anti-bribery training are included in the induction programme of all employees. All colleagues are required to complete annual training encompassing four essential modules: Corporate Code of Conduct (which covers anti-corruption and anti-bribery), Data Privacy Protection, Cybersecurity Awareness, and Diversity, Equity and Inclusion (DEI). These modules help reinforce our core values, ensure regulatory compliance, strengthen our defence against emerging digital threats, and cultivate an inclusive workplace environment.

Our conditions of employment require compliance with the Corporate Code of Conduct. Our Supplier Code of Conduct includes a mechanism for reporting pursuant to our Whistleblowing Policy.

Anti-corruption

Our Anti-fraud and Anti-corruption Policy applies to all who work for and with Swire Pacific or its subsidiaries, and sets out their obligations under laws that counter bribery and corruption, fraud, money laundering and criminal or terrorist financing. We are committed to acting responsibly and in compliance with all applicable Anti-Financial Crime Laws at all levels of the organisation, and take a zero-tolerance approach to any breach of the laws and regulations that we are required to abide by. Our Corporate Code of Conduct applies to all our operating companies and they may in turn adopt additional appropriate procedures designed to put these general principles into practice.

Our Whistleblowing Policy applies to all our operating companies and their respective employees and business partners such as suppliers, contractors, agents and other third parties who deal with us, to raise concerns about suspected improprieties, or report actual improprieties, including potential misconduct, malpractice, or unethical behaviour. Confidential reports can be made to the Group Internal Audit Department, a designated third-party service provider, or to the People Department with no fear of retaliation.

All new employees take part in induction programmes that include anti-corruption and anti-bribery training. Additionally, 100% of our Directors were provided anti-corruption and anti-bribery training materials over the past two years. Our operating companies also implement their own anti-corruption and anti-bribery training programmes for their respective employees and directors; their approaches to implementing anti-corruption and anti-bribery practices and training are outlined in their respective sustainability reports, where applicable.

In 2025, there were 18 valid cases of breaches of the Corporate Code of Conduct reported through Group Internal Audit Department's channels. There were no active or concluded legal cases regarding corrupt practices brought against Swire Pacific or its employees.

<br/>Number of breaches to Code of Conduct Principles


Number of breaches to Code of Conduct Principles

2025

Fraud

8

Bribery

1

Conflicts of interest

0

Diversity and inclusion, and respect in the workforce

7

Health and safety

1

Keeping of records

1

Legal Compliance

We have businesses which operate in various jurisdictions with different legal and regulatory requirements. It is our policy to comply with all applicable laws and regulations, including those governing the environment, employment (including laws prohibiting child or forced labour), health and safety, products (including their advertising and labelling), anti-corruption and anti-bribery, privacy and discrimination. We have policies, codes, guidelines and practices in place to ensure that the Company and its subsidiaries comply with all applicable laws and regulations. Emerging regulations are closely monitored to ensure we are prepared for any changes.

The Audit Committee is responsible for reviewing the Group's policies including the Code of Conduct and Swire Pacific’s compliance with the Corporate Governance Code set forth in the Hong Kong Listing Rules.

We have reviewed laws and regulations relating to sustainability to identify those where significant investment or expenditure would be required to ensure compliance. We have concluded that there are no such individual laws or regulations which currently have a material impact on the Group.

Public Policy and Political Contributions

Swire Pacific, as a normal business activity, will engage with government entities either directly or through trade associations to promote policies that encourage business and achieve workable legislation. All our public policy work must be subject to the standards of business ethics under our Corporate Code of Conduct, which prohibits direct political contributions by Swire Pacific or employees on our behalf.

Further reading
Swire Pacific Annual Report 2025 - Corporate Governance ReportSwire Pacific Reporting of ImproprietiesSwire Pacific Corporate Code of ConductSwire Pacific Whistleblowing Policy

1. Harassment is included under our Human Rights Policy.

Indices and Ratings

Swire Pacific responds to ESG questionnaires from investors, rating agencies, and sustainable stock indices. This enables us to assess our ESG performance having regard to the concerns of sustainability focused investors, and to identify emerging sustainability risks and opportunities.

Dow Jones Best-in-Class Asia Pacific Index

In 2025, Swire Pacific was included in the Dow Jones Best-in-Class Asia Pacific Index (formerly the Dow Jones Sustainability Asia Pacific Index). Swire Pacific has been included on these indices since 2014.

S&P Global Sustainability Yearbook

Swire Pacific was included in the S&P Global Sustainability Yearbook 2026, which recognises top performers in corporate sustainability based on assessments of over 9,200 companies.

Swire Pacific has been included in the S&P Global Sustainability Yearbook (China) since 2023.

Hang Seng Corporate Sustainability Index Series

In 2025, Swire Pacific received an AA+ rating from the Hang Seng Corporate Sustainability Index. Swire Pacific is included in the Hang Seng Corporate Sustainability Benchmark and Hang Seng ESG 50 indices.

MSCI ESG Research

In 2025, Swire Pacific received a rating of "AA" in the MSCI ESG Ratings assessment1. We are listed on the following indices: MSCI ACWI SELECTION Index; MSCI ACWI SRI Index; MSCI ACWI UNIVERSAL Index; MSCI HONG KONG SELECTION Index.

FTSE4Good

In 2025, Swire Pacific was included in the FTSE4Good Index series. Created by FTSE Russell, the FTSE4Good Index Series is designed to measure the performance of companies demonstrating strong ESG practices.

CDP

In 2025, Swire Pacific achieved a score of A for CDP Climate Change and B for Water Security.

1. Disclaimer: https://sr.swirepacific.com/en/sr2025/about-swire-pacific/our-approach#indices-and-ratings/disclaimer

Disclaimer

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