Our commitment to nature and biodiversity is outlined in the Group’s Biodiversity Policy. We expect our businesses to identify biodiversity issues relevant to their facilities, operations, and value chains, and to minimise adverse impacts. We also work collaboratively with partners to support relevant nature and conservation initiatives, as well as raising awareness of nature and conservation issues among our employees, customers, suppliers, and partners.
We have established a Nature Working Group whose members include sustainability and risk professionals from head office and our operating companies, with oversight of and expertise in nature-related topics. The Working Group is tasked with overseeing the
implementation of our Biodiversity Policy, ensuring that our initiatives align with best practices, and that they contribute to sustainable development. Water and waste management are critical issues that are covered under our sustainability strategy and feed into our approach to nature, including how we affect individuals in the communities where we operate.
The Communities pillar complements this by supporting initiatives that fund marine conservation and education. Together, these pillars highlight our holistic approach to creating a positive impact on both the environment and the communities we serve.
To support our businesses as they pursue net zero emissions, we have developed carbon offset guidelines that prioritise the purchase of verified high-quality carbon offsets that offer co-benefits such as protecting or enhancing biodiversity in addition to neutralising emissions.
Understanding our Nature Risks
Swire Pacific is an Adopter of the Taskforce on Nature-related Financial Disclosures (TNFD). Since 2023, we have built processes to integrate nature-related risks into our Enterprise Risk Management. In 2025, we finalised and tested our nature risk assessment approach which aligns with the LEAP (Locate, Evaluate, Assess, Prepare) methodology from the TNFD.
Our assessment involves five key steps:
Value chain mapping: map business activities across direct operations, upstream, and downstream.
Identification of impacts and dependencies: assess the factors that could potentially lead to risks and opportunities across the value chain.
Prioritisation: shortlist most pertinent risks and opportunities.
Validation: analyse how changes in environmental or regulatory conditions might affect the shortlisted risks and opportunities and include these on operating company and Group-level risk registers. This step serves as a stage-gate for further assessment of any likely material risks.
Quantification and mitigation: quantify financial implications of risks and ensure mitigations are in place.
Refer to the table on this page for information related to TNFD in other sections of this report.
An industry-level risk assessment for Swire Properties, Swire Coca-Cola and HAECO group used Natural Capital Finance Alliance’s ENCORE, WWF Biodiversity Risk Filter, and the World Resources Institute’s (WRI) Aqueduct Water Risk Atlas tools. Where potential risks were identified, we conducted further work to understand their exposure, considering plausible worst case scenarios and the mitigations in place. The conclusion was that the analysis remains appropriate, indicating an overall moderate to low assessed physical and transition risk for adverse nature impacts to our businesses over the short- to medium-term.
Swire Properties has conducted a screening of its global portfolio using biodiversity indicators to define a priority list and nature profile, and explore its business impact and dependencies on nature. The priority sites identified were primarily located in the South China-Vietnam subtropical evergreen forests, Xi Yiang freshwater ecoregion, and Southern China freshwater region. Additionally, a list of high-impact commodities, including cement, sand, timber, steel, livestock, and seafood, was compiled based on the Science Based Targets Network’s High Impact Commodities List and the UNEP-WCMC sectorial materiality tool.
It piloted the LEAP approach at its new development in Xi’an, focusing on concrete and steel to understand their environmental interface. This study involved two key suppliers for concrete and one for steel, evaluating over 30 raw material extraction and manufacturing sites. The assessment revealed that the value chain for these materials is concentrated in the Huang He Plain mixed forests, Central China Loess Plateau mixed forests, and the Lower Huang He freshwater ecoregion. The analysis identified impacts and dependencies of the concrete and steel supply chains. The concrete supply chain relies on water provisioning and climate regulation, while the steel supply chain depends on water throughout the steel-making process. Both supply chains were found to impact nature through changes in terrestrial ecosystems, water use, and emissions, including greenhouse gases and particulates, affecting air and water quality.
