HUTCHISON PORT HOLDINGS TRUST 48 SUSTAINABILITY REPORT Risk Time horizon Implications for the Trust Response Transition Introduction of carbon pricing Medium-term The introduction of a carbon pricing mechanism as a regulatory requirement could lead to higher operational costs for the Trust if it does not reduce its carbon emissions, especially when ports continue to rely on fossil fuels. • Commitment to reducing 30% of overall emissions intensity by 2030 compared to 2021 baseline level • Emission reduction initiatives, including installing solar panels and electrifying vehicles and machinery • Green Purchasing Policy & Green Procurement Guidelines at HIT and YANTIAN, respectively, to encourage the purchase of energy-efficient and low-emissions equipment at ports • Explore new technology for asset replacement strategy by seeking support from the Shenzhen government and closely communicating with local electricity companies and suppliers For more details on the decarbonisation efforts of the Trust, please refer to pages 50 to 52 of this Annual Report. Transition to lower emission technology Medium-term Shipping companies are gradually shifting to low-carbon fuels or electricity, and port companies are required to develop and adopt corresponding technology and infrastructure to match these shifts in customer demand. Changing customer behaviour/ market expectation Medium-term Changing customer behaviours can lead to reduced demand for the products and services of the Trust, particularly if customers switch to competitors’ products or reduce their purchases due to changing preferences, such as a shift towards more climate-friendly ports, and demand for energy-efficient and/or carbon-neutral solutions. • Initiatives to become a green port to address customers’ rising demands for more environmentally friendly services • Participation in customers’ sustainability assessment requests • Shore power system and LNG bunkering in YANTIAN to provide greener fuels for its customers and port users • Promotion of rail-sea intermodal service as a low-carbon option for customers
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