Climate Change Data

Environmental Metrics

ESG Focus Areas

• Quality service and cosy accommodation
• Good technology and smart empowerment
• Social cooperation and better life
• Green community and fast mover

Environmental Achievements

• Implemented energy-saving measures, such as installing solar energy water heaters (saving more than 50% electrical consumption), promoting LED lighting, and water recycling initiatives.
• Launched community campaigns to promote a culture of sustainability and environmental conservation.

Social Achievements

• Established a comprehensive and diversified strategy for talent development, including the Shimao Services Business College.
• Organised fundraising for employees in need and implemented heat safety measures.
• Supported village economics with funds and sales channels, and helped seriously ill children.
• Participated in poverty alleviation initiatives, such as purchasing Tibetan highland barley land and selling Gannan oranges through SUNIT.

Governance Achievements

• Established a comprehensive risk and internal monitoring system to curb corruption and fraud.
• Formulated internal guidelines, including the “Customer Satisfaction Guidelines” and the “Guidelines for Handling Customer Complaints”.
• Implemented a whistle-blowing program.

Climate Goals & Targets

Environmental Challenges

• Potential risks associated with climate change, including increased maintenance costs and damage to assets from extreme weather events.
• Maintaining high service quality while managing a large number of customers and properties.

Mitigation Strategies

• Developing a “Climate Change Policy” to guide actions in response to climate change.
• Implementing the “OCEAN OS Shimao Deep Blue Management System” and “OCEAN X Shimao Deep Blue Service System” to improve operational efficiency and service quality.
• Investing in technology to improve energy efficiency and reduce environmental impact.

Supply Chain Management

Supplier Audits: 2 assessments covering 79% of suppliers

Responsible Procurement

• Supplier Conduct Code
• Supplier Management Policy
• Engineering, Service Procurement Procedures

Climate-Related Risks & Opportunities

Physical Risks

• Extreme temperature changes and rising rainwater acidity

Opportunities

• Applying low-carbon operation to address increasing operating costs

Reporting Standards

Frameworks Used: HKEx ESG Reporting Guide

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018

Sustainable Products & Innovation

• Shimao IOT Smart Community Solutions (smart security, smart pass, energy consumption management, etc.)

Awards & Recognition

• 2020 TOP 12 of 100 China Property Management Enterprises
• 2020 TOP 8 of 100 Valuable Brands of Property Management Enterprises
• 2020 TOP 1 Property Management Enterprises in East China
• Ocean X Shimao Deep Blue Service System - 2020 Excellent Brand of Chinese Property Management Enterprise
• Co-hosting of China Poverty Alleviation Community Union Vanguard of Poverty Alleviation by Consumption

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Implemented energy-saving measures such as energy-saving lamps, radar-sensor LED lights, and time-controlled switches.
• Optimized water resource utilization through water-conservative irrigation, rainwater collection, and water-free cleaning methods.
• Implemented measures for garbage classification and waste reduction.

Social Achievements

• Launched employee well-being programs including birthday parties, summer and winter care activities, and employee motivation awards.
• Organized community events such as cultural activities, Happy Run, and children's drawing competitions.
• Implemented inclusive recruitment practices and provided employee development programs.

Governance Achievements

• Established a sound internal whistle-blowing mechanism.
• Implemented a comprehensive risk management and internal control system.
• Conducted business and professional ethics training for all employees.

Climate Goals & Targets

Environmental Challenges

• Rapid business growth and organizational expansion.
• Climate change risks such as extreme weather events.
• Maintaining high service quality with increasing number of users.

Mitigation Strategies

• Developed employee incentive programs and talent capacity building initiatives.
• Developed an emergency recovery plan for extreme weather incidents.
• Established a user classification and relationship maintenance system to better target user service demands.

Supply Chain Management

Supplier Audits: 82.4% coverage

Responsible Procurement

• Supplier Integrity Commitment
• Supplier Management System
• Engineering and Service Procurement Operational Procedures

Climate-Related Risks & Opportunities

Physical Risks

• Extreme temperature changes
• Rising acidity of rainwater

Opportunities

• Implementing green and low-carbon actions

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guidelines

Certifications: ISO 9001, ISO 14001, ISO 45001

Sustainable Products & Innovation

• Shimao IoT smart energy management solutions

Awards & Recognition

• MSCI ESG rating of BBB

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced nitrogen oxide emissions by 3.4 tons through low-nitrogen emission transformation of boilers in northern heating boiler rooms.
• Implemented energy-saving measures in elevators, resulting in reduced energy consumption.
• Implemented solar streetlight upgrades and increased new energy capacity in various projects.
• Provided garbage classification services in 23 cities.

Social Achievements

• Launched various employee wellbeing initiatives, including high-temperature care, holiday greetings, and winter warmth activities.
• Organized various sports activities to promote employee health and team building.
• Conducted employee satisfaction surveys, showing an increase in organizational engagement and employee satisfaction.
• Implemented a “Challenger Plan” to enhance the comprehensive capabilities of reserve talents.

Governance Achievements

• Established a three-level risk control mechanism (headquarters, regional, and project levels).
• Conducted 7 thematic training sessions on labor risks.
• Achieved 100% signing rate of Supplier Integrity Commitment Letters.
• Implemented a 5M service quality assurance mechanism.

Climate Goals & Targets

Environmental Challenges

• Extreme weather events increasing property maintenance costs.
• Labor risks.

Mitigation Strategies

• Developed emergency recovery plans.
• Conducted thematic training sessions on labor risks and issued operational guidelines.
• Implemented a three-level risk control mechanism.

Supply Chain Management

Responsible Procurement

• Centralized procurement, fair competition, transparency, integrity, and traceability.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Opportunities

• Implementing green and low-carbon measures to reduce operating costs.

Reporting Standards

Frameworks Used: HKEX Appendix 27

Certifications: ISO 14001, ISO 45001, ISO/IEC 27001:2022, ISO/IEC 20000-1:2018

Awards & Recognition

• 2023 China Property Service Enterprise Comprehensive Strength Top 10 (TOP7)
• 2023 China Property Service Enterprise Brand Value Top 100 (TOP6)
• 2023 China Property Service Power Top 100 Enterprises (TOP6)
• 2023 China Property Service Satisfaction Top 100 (TOP1)
• 2023 China Red Property Service Leading Enterprise
• 2023 China Public Building Property Service Power Enterprise Top 10 (TOP10)
• 2023 China Administrative Office Property Service Enterprise Top 10 (TOP10)
• 2023 China Industrial Park Property Service Enterprise Top 10 (TOP10)
• 2023 China Hospital Property Service Leading Enterprise
• Zhejiang Province 2023 Kangyang Industry Leading Enterprise
• 2023 Shanghai Specialized, Refined, Special, and New Small and Medium-sized Enterprises
• 2023 Real Estate Digital Power TOP20 Technology Leading Enterprise
• 2023 China School Property Service Leading Enterprise TOP1