Climate Change Data

Environmental Metrics

ESG Focus Areas

• Emissions
• Employment and labour practices
• Health and safety
• Supply chain management
• Community investment

Environmental Achievements

• Shanghai HKP Property Management Limited certified for ISO 14001:2004 Environmental Management System since 2012 and planning to improve its management system according to updated ISO 14001:2015.
• Guangzhou Lai Fung Tower is a certified green building with Gold rating in LEED 2009 for Building Design and Construction, while Guangzhou Haizhu Plaza is planned with reference to Gold rating requirement in LEED.

Social Achievements

• Company signed the Good Employer Charter of the Labour Department.
• Offered twelve special screenings for underprivileged families and Children’s Cancer Foundation.
• Supports Yuen Long District Secondary School Students Summer Internship Programme.

Governance Achievements

• Established a set of corporate governance policy in March 2012.
• Established an Audit Committee in April 1999.
• Established a Remuneration Committee in September 2005.

Climate Goals & Targets

Environmental Challenges

• Lower turnover from sale of properties.
• Unsatisfactory performance of films released.
• Lower tax indemnity amount received.
• Lower fair value gain arising on cross currency swaps.

Mitigation Strategies

• Continuously explore strategic alliances and investment opportunities to enrich the Group’s portfolio and broaden its income stream.
• Expanded activities in production and investments in quality TV drama series.
• Opened two new cinemas, one in Shatin, Hong Kong and the other one in Suzhou in Mainland China.

Supply Chain Management

Responsible Procurement

• Outlining standards and requirements to contractors in line with local regulations.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: The Stock Exchange of Hong Kong Limited’s Environmental, Social and Governance Reporting Guide

Certifications: ISO 14001:2004, LEED 2009 (Gold rating for Guangzhou Lai Fung Tower)

Environmental Metrics

ESG Focus Areas

• Emissions
• Use of resources
• Environment and natural resources
• Employment
• Health and safety
• Development and training
• Labour standards
• Supply chain management
• Product responsibility
• Intellectual property rights
• Anti-corruption
• Community investment

Environmental Achievements

• Shanghai HKP Property Management Limited obtained ISO 14001:2015 Environmental Management System.
• Implemented energy saving measures in cinema operations to reduce indirect carbon emissions.
• Implemented waste management plan focusing on reduction, reuse, sorting and recycling.
• Installed automatic sensor taps in Hong Kong Plaza to reduce water consumption.
• Replaced fans and renovated air conditioning pump inverter in Hong Kong Plaza, resulting in energy savings.

Social Achievements

• Signed the Good Employer Charter of the Labour Department.
• Organised various wellness activities for employees (wellness seminars, sports events).
• Offered tuition scheme for employees with over 12 months of service.
• Provided training programs for property management employees (on-board training, health and safety training, customer service training, skill-based training).
• Organised monthly “Lunch Talk” sessions, health talks, workout classes, and interest classes for employees in Hong Kong.
• Organised team building and well-being programs for employees in Mainland China.

Governance Achievements

• Established specific committees (Executive Committee, Audit Committee, Remuneration Committee) with written terms of reference.
• Adopted a Shareholders’ Communication Policy.
• Adopted a Board Diversity Policy.
• Adopted a Code of Practice for Securities Transactions by Directors and Designated Employees.
• Established a risk management framework (Board, Audit Committee, Risk Management Taskforce).

Climate Goals & Targets

Environmental Challenges

• Softening inflation and growing caution surrounding capital markets due to global economic slowdown, trade war, Brexit uncertainty, geopolitical tensions, and protests in Hong Kong.
• Significant decrease in fair value gain arising from the revaluation of the Group’s investment properties.
• Significant decrease in profit contribution from property sales of Guangzhou Dolce Vita.

Mitigation Strategies

• Cautiously optimistic about future prospects, especially in the Greater Bay Area.
• Regional focus and rental-led strategy of Lai Fung demonstrated resilience.
• Developing existing projects in Shanghai, Guangzhou, Zhongshan, and Hengqin to increase rental portfolio.
• Disposal of 20% equity interest in Novotown Phase I to crystallise value and reduce borrowings.
• Prudent and flexible approach in managing financial position.

Supply Chain Management

Responsible Procurement

• Clear tendering process with consideration for environmental and safety issues.
• Examination of environmental and safety measures of potential contractors.
• Requirement for contractors to submit environmental and safety management plans.

Climate-Related Risks & Opportunities

Reporting Standards

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

Certifications: ISO 14001:2015

Environmental Metrics

ESG Focus Areas

• Emissions
• Use of resources
• The environment and natural resources
• Employment
• Health and safety
• Development and training
• Labour standard
• Operating practices
• Supply chain management
• Product responsibility
• Community investment
• Anti-corruption

Environmental Achievements

• Secured a HK$3.6 billion 4-year secured term loan facility for Ocean Park Marriott Hotel, the first green loan solely used to finance a hotel property in Hong Kong.
• Ocean Park Marriott Hotel achieved Final BEAM Plus “GOLD” rating.
• Installed energy-saving lighting in Guangzhou Lai Fung Tower, Guangzhou May Flower Plaza and Guangzhou West Point, achieving a reduction in energy consumption of nearly 70,000 kWh per year in total.
• Ocean Park Marriott Hotel’s installation of LED lights and rainwater collection system for irrigation are estimated to conserve about 43,200 kWh energy and 4,450 m2 water annually.

Social Achievements

• Signed the Good Employer Charter of the Labour Department.
• Organised “Lunch Talk” on health awareness, interest classes, work-out exercise programme and film screening for employees in Hong Kong.
• Arranged large-scale annual events including group annual dinner staff party and one-day leisure tour for employees and their family and friends.
• Supported Konica Minolta Green Concert to advocate environmental awareness and raise funds for charity.
• Participated in the Online Mentorship programme organised by Hong Kong Council of Social Service.

Governance Achievements

• Adopted the Nomination Policy in January 2019.
• Adopted a board diversity policy in July 2013.
• Adopted the dividend policy on 25 January 2019.
• Adopted a Code of Practice for Securities Transactions by Directors and Designated Employees.

Climate Goals & Targets

Environmental Challenges

• Lower turnover from sale of properties and decrease in revenue from media and entertainment businesses and cinema operations amid social unrest in Hong Kong and the COVID-19 pandemic.
• Decrease in fair values of investment properties and share of losses from joint ventures.
• Increased other operating expenses due to impairment of assets.
• Write-down of completed properties for sale.
• COVID-19 pandemic impacting the global economy and business operations.
• Heightening tensions between China and the United States adding uncertainties to the Chinese economy.

Mitigation Strategies

• Operated with caution and dedicated management efforts to minimize impacts and disruptions.
• Launched and completed a voluntary general cash offer to acquire all issued shares of Lai Fung to optimize holding structure.
• Secured a HK$3,600 million 4-year secured term loan facility to finance Ocean Park Marriott Hotel.
• Monitored market conditions in London for potential redevelopment of Leadenhall Properties.
• Continued to monitor market conditions in Hong Kong and Mainland China and improved operating efficiency.
• Focused on producing high-quality films and tightening cost control procedures.
• Implemented a prudent and flexible approach in growing the landbank and managing its financial position.
• Signed a 5-year secured term loan and revolving credit facility to refinance outstanding loan balance and finance general corporate requirements.

Supply Chain Management

Responsible Procurement

• Assessment of contractors’ environmental and safety procedures.
• Requirement for contractors to submit Environmental Management Plan and Safety Management Plan.
• Selection of suppliers for hotels based on EHS performance.
• Responsible food sourcing in restaurants partnering with WWF.

Climate-Related Risks & Opportunities

Reporting Standards

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

Certifications: ISO 14001:2015 (Shanghai and Guangzhou operations), BEAM Plus “GOLD” (Ocean Park Marriott Hotel)

Awards & Recognition

• Outstanding Award for Green Loan Issuer — Largest Single Green Loan (Hotel Development Industry) in the Hong Kong Sustainable Finance Awards 2020

Environmental Metrics

ESG Focus Areas

• Climate resilience and greenhouse gas emissions
• Waste management
• Green building
• Water resources
• Employee engagement
• Wellbeing, occupational health and safety
• Supply chain management
• Community investment
• Anti-corruption

Environmental Achievements

• Shanghai Skyline Tower and Guangzhou Lai Sun International Center obtained LEED v4 Gold Certification
• CCB Tower received various awards for environmental efforts (Excellent Level of Wastewise Certificate, Green Office Award Labelling Scheme Certificate, Indoor Air Quality Certificate)
• Lai Sun Commercial Centre and Cheung Sha Wan Plaza solar panels commenced operation, generating renewable energy
• Various properties achieved ISO and green building certifications

Social Achievements

• Organised various charity events in Mainland China (Warmth for Anti-epidemic, donation to Guizhou Charity Federation, charity walk in Zhongshan)
• Staff participated in volunteering events in Hong Kong (elderly visits, Serve360 Sustainability Program, Food Angel volunteer event)
• Implemented employee wellbeing programs (Lunch Talks, DIY workshops, wellbeing massage sessions in Hong Kong; festive gifts, employee birthday celebrations, Global Health Week activities in Mainland China)

Governance Achievements

• Adopted revised Whistleblowing Policy
• Adopted revised terms of reference of the Remuneration Committee
• Adopted amended articles of association
• Engaged an independent external risk advisory firm to conduct internal control reviews

Climate Goals & Targets

Environmental Challenges

• Global geopolitical and economic issues (war in Ukraine, high inflation, high interest rates, cautious investor sentiment)
• Weakened trade growth and real estate sector downturn in China
• COVID-19 restrictions in China
• Technical recession in Hong Kong due to COVID-19 measures, high interest rates, and perception of the national security law
• Worsening business sentiment and lack of demand in Hong Kong's office and retail leasing market

Mitigation Strategies

• Optimising tenant mix and completing renovation and space optimisation works in Hong Kong
• Monitoring market conditions in London for potential redevelopment of Leadenhall Properties
• Revised proposal for Leadenhall Properties redevelopment approved by City of London Authority
• Prudent and flexible approach to capture new development opportunities
• Regional focus and rental-led strategy in Mainland China
• Improving environmental performance in Mainland China operations
• Deepening cooperation between Hengqin and Macau

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Comprehensive tendering procedure for construction projects, evaluation of contractors' environmental and safety practices, submission of Environmental Management Plan and Safety Management Plan, standardized procurement procedure for hotel suppliers, responsible food sourcing in food and beverage services

Climate-Related Risks & Opportunities

Physical Risks

• Tropical cyclones, floods

Transition Risks

• Policy and legal risks, higher operating costs due to stricter regulations

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide, TCFD

Certifications: ISO 14001:2015, ISO 45001:2018, LEED, BEAM Plus

Third-party Assurance: Ernst & Young Certified Public Accountants

UN Sustainable Development Goals

• Not disclosed

Mapped 10 of the 17 SDGs to our initiatives

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Various awards for CCB Tower's environmental efforts, Platinum Award of Charter on External Lighting for CCB Tower