Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Caring for Employees
• Business Operation
• Community Investment

Environmental Achievements

• Selected as one of China’s TOP 50 Green Real Estate Developers
• 40 projects with one-star green building certification, covering a construction floor area of 10,450,000 m2; 12 projects with two-star green building certification, covering a construction floor area of 1,160,000 m2; and 3 projects with three-star green building certification, covering a construction floor area of 240,000 m2.
• Implemented measures to reduce environmental impact from construction, such as adopting prefabricated construction and eco-friendly materials.

Social Achievements

• Established a policy on the prohibition of child labour and performed background checks to verify applicants’ ages.
• Offered competitive remuneration, including fixed and fluctuating income, and a performance management system.
• Adopted a five-day work week and ensured employees were entitled to various leaves.
• Provided employee welfare such as medical examinations, allowances, and house-purchasing welfare.
• Established a trade union to offer recreational activities and support employee clubs.

Governance Achievements

• Formulated a policy on the prohibition of child labour.
• Implemented a comprehensive promotion and development mechanism for staff.
• Established a clear and effective management system for reporting risks such as hazards and illnesses during work.
• Formulated brand management-related policies.
• Implemented internal management systems for prohibiting any forms of unethical behavior.
• Required all new employees to sign an integrity agreement.

Climate Goals & Targets

Environmental Challenges

• Climate change and environmental pollution.
• Pollutants emitted from construction work (outsourced to contractors).
• Greenhouse gas emissions from daily operations (vehicle fuel combustion, purchased electricity, sewage treatment, business trips, waste disposal).
• Waste generation from daily operations.
• Potential risks related to unethical behavior and corruption.

Mitigation Strategies

• Established an environmental management system and actively facilitated the design, development and construction of green buildings.
• Implemented measures for energy conservation and emission reduction, and launched relevant promotion and training.
• Regular maintenance of vehicles and introduction of electric vehicles.
• Energy conservation measures (separate light switches, energy-efficient lighting, air-conditioning temperature control, casual wear in hot weather).
• Encouraging video conferencing for long-distance communication.
• Paper recycling and reduction measures.
• Regular leakage tests on concealed piping and fixing leaks.
• Using water-efficient toilet equipment and water-saving reminders.
• Formulated a policy and measures to combat corruption, and established reporting channels.

Supply Chain Management

Responsible Procurement

• Prioritizing green and eco-friendly products.
• Established a supplier management system and relevant policies.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: “Environmental, Social and Governance Reporting Guide” under Appendix 27 of the Rules Governing the Listing of Securities issued by The Stock Exchange of Hong Kong Limited

Sustainable Products & Innovation

• Green buildings, eco-friendly materials.

Awards & Recognition

• “Asia Model for Eco-Commercial” for Hongqiao Zhenro Center

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social Responsibility
• Governance

Environmental Achievements

• Construction of green buildings with reduced construction time, pollution, and resource usage.
• Implementation of energy conservation and emission reduction measures.
• Waste reduction initiatives including recycling and use of reusable products.
• Reduced greenhouse gas emissions (from 509 tons CO2e in 2017 to 437 tons CO2e in 2018).

Social Achievements

• Fair and transparent talent recruitment.
• Establishment of a safe working environment and diversified career development paths.
• Implementation of employee welfare programs including competitive remuneration, paid leaves, and various benefits.
• Community investment initiatives focused on poverty alleviation and countryside development.
• Support for community organizations and various public welfare projects.

Governance Achievements

• Implementation of anti-corruption policies and measures.
• Strict compliance with relevant laws and regulations.
• Establishment of internal management systems to prohibit unethical behavior.

Climate Goals & Targets

Environmental Challenges

• Environmental pollution from construction work (outsourced to contractors).
• Greenhouse gas emissions from various sources including vehicle use and office operations.
• Waste generation from daily office operations.

Mitigation Strategies

• Implementation of environmental management systems and green building practices.
• Regular vehicle maintenance, use of electric vehicles, and promotion of video conferencing to reduce emissions.
• Waste reduction measures including recycling bins, reusable products, and electronic communication.

Supply Chain Management

Responsible Procurement

• Selection of outstanding enterprises and famous brands as partners.
• Prioritization of green and eco-friendly products.
• Hierarchical, classified, and whole-process incentivized supplier management system.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: “Environmental, Social and Governance Reporting Guide” under Appendix 27 of the Rules Governing the Listing of Securities issued by The Stock Exchange of Hong Kong Limited

Sustainable Products & Innovation

• Green buildings
• Smart plant walls

Awards & Recognition

• “Asia Model for Eco-Commercial” for Hongqiao Zhenro Center

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Caring for Employees
• Business Operation
• Community Investment

Environmental Achievements

• Launched the project “Safeguarding Clear Water and Blue Sky”, conducting ecological and environmental surveys on water sources and implementing water ecology activities.
• Actively facilitated the design, development and construction of green buildings, adopting prefabricated construction to shorten construction periods and reduce pollution.
• Built smart vertical green walls, showcasing the Group’s determination to protect the environment.
• Implemented measures for energy conservation and emission reduction, launching relevant promotion and training.

Social Achievements

• Established a comprehensive training system based on the talent model of “One Attitude, Five Powers”, providing training at three levels.
• Offered competitive remuneration to employees, including fixed and float income, with a performance management system in place.
• Provided various employee welfare such as employee medical examination, high-temperature allowance, and cash gifts.
• Established the Zhenro Union, advocating help and care among employees and building a corporate culture of happiness and harmony.

Governance Achievements

• The Board of the Group is responsible for overseeing the formulation and reporting of the Group’s ESG strategies and assessing and determining the ESG-related risks.
• The Board periodically conducts independent evaluations of the adequacy and effectiveness of the Group’s ESG management through internal review function.
• Formulated a policy on the prohibition of child labour and performed background checks to verify applicants’ ages.
• Maintained a high-standard implementation of anti-corruption policy and measures, conforming to relevant laws and regulations.

Climate Goals & Targets

Environmental Challenges

• Climate change and environmental pollution.
• Property development inevitably causes impacts on the surrounding environment.
• Daily operation of the Group generates different types of emission.
• Business trip is one of the major sources of greenhouse gas emission.

Mitigation Strategies

• Established an environmental management system.
• Implemented measures in a variety of aspects, putting eco-friendly elements into the design and construction of projects.
• Improved environmental monitoring capability and established environmental performance indicator management system.
• Carried out regular maintenance of vehicles, ensured no idling engines, and introduced electric vehicles.
• Implemented energy conservation and paper recycling measures.
• Encouraged employees to use video conferencing for long-distance communication to substitute for business trips.

Supply Chain Management

Responsible Procurement

• regards environmental protection as one of the criteria during evaluation, and gives priority to green and eco-friendly products.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: “Environmental, Social and Governance Reporting Guide” under Appendix 27 of the Rules Governing the Listing of Securities issued by The Stock Exchange of Hong Kong Limited

Awards & Recognition

• “Asia Model for Eco-Commercial” by Hurun Report
• an outstanding corporate poverty alleviation case in the “Blue Book of Poverty Alleviation of Enterprise (2018)”

Environmental Metrics

ESG Focus Areas

• Green Buildings
• Renewable Energy
• Energy Efficiency
• Pollution Prevention and Control
• Sustainable Water Management

Environmental Achievements

• Reduced dust pollution by X% (2019 compared to 2017 levels)
• Reduced water consumption by 60% (2019 compared to 2017 levels)
• Reduced construction waste by 80% (2019 compared to 2017 levels)

Social Achievements

• Established a corporate social responsibility management system
• Built a "Social Responsibility Think Tank"

Governance Achievements

• Established a Green Bond Committee

Climate Goals & Targets

Environmental Challenges

• Occupational health and safety risks
• Land use change
• Biodiversity loss
• Public opposition
• Emissions, effluents, and waste generated during construction

Mitigation Strategies

• Environmental risk assessment during project design (per China’s Environmental Impact Assessment Act)
• Environmental protection investigation for all projects
• Waste management system prohibiting illegal dumping
• Occupational health and safety management system with reporting and training
• ESG risk management governance structure overseen by the Board

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Green Bond Principles 2018

UN Sustainable Development Goals

• SDG 6
• SDG 7
• SDG 11
• SDG 12

Zhenro's eligible projects will contribute to these SDGs through green building, renewable energy, energy efficiency, pollution prevention and control, and sustainable water management.

Awards & Recognition

• Asian Eco-Business Flagship

Environmental Metrics

ESG Focus Areas

• Environmental Responsibility
• Social Responsibility
• Governance Responsibilities

Environmental Achievements

• Obtained 22 China 2-star or 3-star Green Building design standard certificates, with a total green building floor area of 2.4 million sq.m.
• Implemented 63 sponge city projects.
• 56 projects under construction with total building floor area of 3.5 million sq.m. use fabricated components.

Social Achievements

• Delivered over 42,000 new housing units in 2022.
• Launched “Quality Manufacturing +” special action, conducting more than 100 online and offline site open activities.
• Handled 2,909 customer complaints efficiently, with a complaint closure rate of 92.46%.

Governance Achievements

• Established a standardized and efficient corporate governance structure.
• Implemented a wide range of liquidity management and cost-saving measures.
• Received two investor relations awards from Institutional Investor.

Climate Goals & Targets

Environmental Challenges

• Significant difficulties and challenges for real estate enterprises due to continuous and in-depth adjustments in the real estate industry, compounded by the recurring novel coronavirus pandemic and other unexpected factors.
• Weak overall consumption demand and declining willingness to purchase houses led to negative growth in the overall sales of real estate enterprises in 2022.
• The Group’s operations and liquidity were significantly impacted by the drastic changes in the external environment.

Mitigation Strategies

• Focused on the two major tasks of “guaranteeing completion and ensuring delivery”.
• Overcame unfavourable factors to ensure that projects progressed in an orderly manner.
• Implemented a wide range of liquidity management and cost-saving measures, including seeking extensions and waivers regarding its financings, seeking disposal of assets, accelerating sales and cash collection, streamlining corporate structure, and reducing non-core business operations and administrative expenses.

Supply Chain Management

Supplier Audits: 5,000 suppliers

Responsible Procurement

• Unified evaluation criteria for business lines, general contracting and subcontracting.
• Comprehensive online evaluation of suppliers.
• Higher admission requirements for suppliers in terms of quality, qualification, cost, delivery, service, etc.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events such as rainstorm, typhoon, flood, extreme high temperature and cold weather
• Changes in temperature and rainfall

Transition Risks

• Policies on energy conservation and emission reduction
• Stricter emission reporting obligations and compliance requirements

Opportunities

• Increase in the demand for green buildings
• Development and application of green technologies

Reporting Standards

Frameworks Used: Appendix 27 to the Rules Governing the Listing of Securities (the “Listing Rules”) on The Stock Exchange of Hong Kong Limited

Sustainable Products & Innovation

• Green buildings
• Prefabricated buildings
• Sponge city building

Awards & Recognition

• 2022 Top 10 Ingenious Residential Brand Value (Zhenro Mansion)
• 2022 China Property Developer Top 40 by Comprehensive Strength
• 2022 China Property Developer Top 50 by Brand Value
• 2022 Property Developer Top 30 by Product Competitiveness
• 2022 Outstanding Developers by Delivery Assurance
• 2022 Top 10 Luxury Residential (The Pinnacle)
• 2022 Top 100 Private Enterprise in Fujian Province (Ranked 14th)
• 2022 Best Property Developer by Delivery Competitiveness
• Best Overall Global Fixed-Income Investor Relations (Ranked 6th Globally)
• Best Overall Global Fixed-Income Investor Relations (Ranked 1st in Asia)
• 2022 List of Must Buy Real Estate Brand
• 2022 Caring Company
• 2022 Heart to Heart Company
• Outstanding Economic Contribution Award
• Outstanding Contribution Award
• Putian Contract-Abiding and Creditable Enterprise
• 2021 Influential Real Estate Enterprise
• Philanthropic Real Estate Enterprise of the Year
• 2021 Top 10 Preferred Brands of Tianjin Real Estate
• Muse Design Awards — Landscape Design Platinum
• Muse Design Awards — Interior Design Gold
• 2021–2022 China Real Estate & Design Award — Residence Demonstration Area (Landscape Design) Merit Award
• IDA Design Awards — Interior Design
• 2021–2022 China Real Estate & Design Award — Residence Demonstration Area (Architectural Design) Merit Award
• Architizer A+ Awards — Private Garden (Finalist)
• 2021–2022 China Real Estate & Design Award — Residence Merit Award
• 2022 Tianjin Haihe Cup Excellent Housing and Residential Community (2nd Class Award)
• Ranked 1st in the Third Party Comprehensive Evaluation of Civil Engineering Quality and Safety