LEADING THE TRANSITION SUSTAINABILITY REPORT 2023 INSIDETHISREPORT OURENVIRONMENT03 OUR APPROACH OUR FUTURE OUR PEOPLE OUR BUSINESS For Our Environment114For Our People114For Our Business115Our Commitment115 3.1Climate383.1.1Management383.1.2Net-zero413.1.3SBTi44 4.1Colleagues604.1.1Safety & Security604.1.2Human Capital644.1.3Wellness,Engagement &Inclusion724.2Community804.2.1Go Green & DockSchool804.2.2CommunityEngagement884.2.3Communications90 Highlights6Foreword8 2.1.1Planning182.1.2Stewardship202.1.3Implementation22 1.1Hutchison Ports101.1.1Our Report101.1.2Our Operations &Values12 3.2Transition 2.2Materiality 5.2Sustainable BusinessModel104 Appendix116 2.2.1Engagement &Materiality242.2.2UNSDGs Mapping302.2.3Reporting WhatMatters35 3.2.1Resilience483.2.2Resources & Risk503.2.3Circular Economy56 5.2.1Ports in Transition1045.2.2Terminal OperatingSystem1065.2.3Innovative Ports110 INTRODUCTION01 Highlights6Foreword81.1Hutchison Ports101.1.1Our Report101.1.2Our Operations & Values12 HIGHLIGHTS OURENVIRONMENT OURPEOPLE OURBUSINESS OURAWARDS Hutchison Ports BEST (Spain)received commendation fromthe Townhall of El Prat deLlobregat in recognition of itsemployment programme Science Based Targets initiative(SBTi) approved our near-termand net-zero targets Strengthen enforcement of theGlobal Minimum Safety Standards(GMSS) 12.11 on pedestrian safety Reduction in globalinventory level Over 1,500participants inGlobal Connect -10.6%in CO2intensity,compared to 2022 Established SharedServices Centre Hutchison Ports Busan (SouthKorea) receives Grand Prize atthe Vehicle Booking Systemcompetition -19.4% New Terminal Operating System- Veronica Hutchison Ports PakistanAcknowledged as the “PeopleDeveloper Port - Terminal ofthe Year 2023” and “CorporateSocial Responsibility PursuerPort - Terminal of the Year 2023”Awards in Scope 1 & 2 emissions,compared to 2021 baseline 88%of the globalnetwork participated inClimate Fresk Card Game Gate automation inHutchison Ports Thailand Extended coverage ofpurchasing green electricity Implementation of AutonomousTrucks (ATs) in Hutchison PortsPort of Felixstowe (UnitedKingdom), Hutchison PortsICAVE (Mexico) and HutchisonPorts Thailand London Thamesport receivedthe Medway Well-beingAward in recognition of itsachievements for the healthyworkplace scheme -5.5%in DieselConsumption per TEU Planted 10,300 trees and Interacted with3,100 students Developed BU leveldecarbonisation plans under Go Green x Dock School campaign FOREWORD In July, the International Maritime Organization (IMO)adopted its 2023 Strategy on Reduction of GreenhouseGas(GHG)Emissions from Ships,with enhancedtargets to tackle harmful emissions - a commitmentto ensure an early adoption of alternative zero or nearzero emission fuels by shipping lines by 2030, with atarget to reducing at least 70 per cent GHG emissionsby 2040. In May, the European Union also adoptednew rules to extend its Emissions Trading System tocover GHG emissions from all ships with a 5,000 grosstonnage and above entering EU ports. on. We have issued our Biodiversity Policy, which sets outour vision to protect our local environment from adversebiodiversity impact due to our operations, preservenaturalresources and raising overall environmentalprotection awareness. Our Go Green and Dock Schoolprogrammes continue to make a difference in the localcommunities we operate in. There are a number of casestudies relating to biodiversity in this report and I hopeyou enjoy reading them. We could not have achieved all these initiatives withoutthesupportofouremployees.Developingsafe,inclusiveand happy workplaces where employees with differentbackgrounds feel supported, proud and recognisedcontinues to be our priority. We value the contributionof our people and continue to foster a culture ofresilience,collaboration,innovation and excellence.Duringthe Covid pandemic,we introduced theBEWELLcampaign to support our employees. We arepleased that over 1,500 employees participated in ourGlobal Connect programme in 2023 which encouragesa life-long learning culture for our employees andnetworking to bring our people together. Our peopleare our most valued asset and our continued success isbuilt on their commitment and talent. STEPHEN ASHWORTHManaging DirectorSouth East Asia CLEMENCE CHENGManaging DirectorEurope With the advent of new regulations, our customersdecarbonisation efforts have picked up pace. Theyhave designed next generation ships using alternativefuels such as LNG and methanol. They expect morefrom us in assisting them on their decarbonisationjourney. A number of our ports have started providingshorepower to ships and many more ports areinthe process of installing shore power facilities.Furthermore, we continue to improve our operationsto ensure we provide the highest levels of service andefficiency expected by our customers. On 19 December 2023, we were notified by ScienceBasedTargets initiative(SBTi)that our ne