Hui Xian Real Estate Investment Trust

Climate Impact & Sustainability Data (2016)

Implemented an integrated environmental management system across the portfolio to manage and monitor environmental performances.
Commissioned a third-party carbon auditor to conduct carbon audits for Beijing Oriental Plaza and identify carbon reduction opportunities.
Upgraded air handling units at Sofitel Shenyang Lido, resulting in energy conservation.
Implemented energy conservation initiatives, such as turning off electrical heating systems in Chongqing Metropolitan Oriental Plaza one hour before closing.
Replaced lighting systems in Chongqing Metropolitan Oriental Plaza carpark and mall with LED lights and installed a new light control system.
Installed a chiller water recycling system in Beijing Oriental Plaza shopping mall.
Encouraged employees, tenants, and customers to reduce waste and recycle resources.
Encouraged hotel operators to use environmentally-friendly toiletries and reuse towels and linen.

Provided employees with an open and fair working environment, prohibiting discrimination.
Implemented policies and operating procedures for workplace health and safety, complying with relevant laws and regulations.
Organised fire drills and fire prevention training for employees.
Provided employees with annual performance reviews and training opportunities.
Offered short-term and mid-term attachment programs for employee development.
Maintained a mutually beneficial relationship with tenants and customers through active engagement and feedback mechanisms.
Implemented policies and procedures for customer data protection and privacy.
Supported deprived children through community fundraising events at Chongqing Metropolitan Oriental Plaza and Sofitel Shenyang Lido.
Initiated a tree planting event and the Qinlong project to promote environmental awareness and support local communities.

Adopted a structured governance and management approach to drive sustainability strategy.
Established a Steering Committee to facilitate the integration and implementation of sustainability initiatives.
Complied with the relevant provisions of HKEx ESG Guide and the Listing Rules.

Long-term Goals:

Explore investment opportunities to generate long-term benefits for unitholders.

Medium-term Goals:

Revamp Chongqing Metropolitan Oriental Plaza through the ongoing asset enhancement program.
Integrate two newly acquired hotels into the growing portfolio.

Short-term Goals:

Global economic volatility and political change.
Slower economic growth and a softening retail market in China.
Changes in tax policies in China (VAT reform and changes in real estate tax regulations).
Cooling economic growth and the Central Government’s anti-extravagance policy impacting consumer spending on luxury goods.
Shifting consumer spending from physical retail outlets to online purchases.
RMB exchange rate fluctuation against Hong Kong Dollars.
Uncertainty and volatility in the global economy.

Adhered to a prudent financial management strategy.
Implemented effective revenue and expense management in hotels.
Implemented asset enhancement and tenant mix optimization programs.
Continued to explore investment opportunities to generate long-term benefits for unitholders.
Hedging against interest rate exposure if necessary.
Prudent tenant selection and review of their financial position.
Maintaining sufficient liquidity.

Stringent procurement policies and procedures to ensure that all purchases of goods and services for businesses are properly authorised.
Consideration of environmental and social standards in the assessment and selection of suppliers.

Frameworks Used: HKEx ESG Guide