Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employment
• Health and Safety
• Development and Training
• Supply Chain Management
• Product Responsibility
• Anti-Corruption
• Community Investment
• Compliance

Environmental Achievements

• 17% of lighting in common areas of Regent Centre changed to LEDs
• HK$35 million budget allocated to upgrade air conditioning system in Regent Centre with energy-efficient units and environmentally friendly refrigerant R410A

Social Achievements

• No staff turnover in 2016 (2015: 20%)
• Average employee length of service 2.2 years as at 31 December 2016 (31 December 2015: 2 years)
• Independent customer satisfaction survey conducted
• Customer service hotline established

Governance Achievements

• Whistle-blowing system in place for reporting suspected wrongdoing
• No reported instances of fraud, corruption, or wrongful acts

Climate Goals & Targets

Environmental Challenges

• Economic conditions and property market in Hong Kong
• Performance of business partners
• Success of mergers and acquisitions
• Securing financial resources for property acquisitions
• Staff continuity
• Reputation risk
• Competing interests with Vanke HK

Mitigation Strategies

• Prudent risk management
• Close partnership with property managers
• Measures to improve customer satisfaction
• Cautious and disciplined approach to property acquisition
• Risk management policy and system established
• Key risk indicators established

Supply Chain Management

Responsible Procurement

• Favors service providers, contractors, suppliers, and business partners who follow environmentally friendly practices

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Stock Exchange’s Environmental, Social and Governance Reporting Guide

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employment
• Health and Safety
• Development and Training
• Supply Chain Management
• Product Responsibility
• Anti-Corruption
• Community Investment
• Compliance

Environmental Achievements

• Upgraded air conditioning system in Regent Centre with environmentally friendly refrigerant R410A (HK$35 million budget)
• Gradual replacement of lighting fixtures to LEDs in common areas of Regent Centre
• Recycled approximately 64,000 kg of paper in Regent Centre
• Reduced print paper usage to approximately 264 kg

Social Achievements

• Maintained active dialogue with property managers and conducted independent customer satisfaction surveys
• Established a customer service hotline for tenant feedback
• Provided in-house training and online learning materials for employees
• Offered training subsidies to employees on a merit basis
• Participated in charity events

Governance Achievements

• Established a whistle-blowing system for reporting suspected wrongdoing
• No reported instances of fraud, corruption, or wrongful acts

Climate Goals & Targets

Environmental Challenges

• Economic conditions and property market in Hong Kong
• Performance of business partners (property managers and joint venture partner)
• Finding suitable acquisition targets
• Securing funding for property acquisitions
• Staff continuity and competition for skilled workforce
• Reputation risk from disputes or non-compliance
• Competing interests with China Vanke and Vanke HK

Mitigation Strategies

• Formulated a risk management policy and established a risk management system
• Close supervision and monitoring of service providers
• Due diligence and detailed analyses for acquisitions
• Reallocation of rights issue proceeds to fund foreseeable business needs
• Competitive remuneration and benefits packages for employees
• Active communication and engagement with stakeholders
• Independent Non-Executive Directors oversee arm’s length operations from Vanke HK

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Favors service providers, contractors, suppliers, and business partners who follow environmental-friendly practices

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Appendix 27 to the Listing Rules (ESG Guide)

Certifications: ISO 9001 (Regent Centre estate manager)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employment
• Health and Safety
• Supply Chain Management
• Product Responsibility
• Anti-Corruption
• Community Investment

Environmental Achievements

• Upgraded air conditioning system in Regent Centre using environmentally friendly refrigerants, completed in Q1 2018 (HK$31 million expenditure)
• Gradual replacement of lighting fixtures to LEDs in common areas of Regent Centre
• Recycled approximately 69,000 kg of paper in Regent Centre

Social Achievements

• Maintained active dialogue with property managers and conducted independent customer satisfaction surveys
• Established a customer service hotline for tenants
• Provided in-house training and online learning materials for employees
• Offered training subsidies to employees on a merit basis
• Participated in charity events

Governance Achievements

• Established a whistle-blowing system for employees to report suspected wrongdoing
• No reported instances of fraud, corruption, or wrongful acts

Climate Goals & Targets

Environmental Challenges

• Economic conditions and property market in Hong Kong
• Performance of business partners (property managers and joint venture partner)
• Finding suitable acquisition targets
• Securing funding for property acquisitions
• Staff continuity
• Reputation risk from disputes or non-compliance
• Competing interests with Vanke HK

Mitigation Strategies

• Close supervision of property managers and regular meetings
• Due diligence and detailed analyses for acquisitions
• Leveraging investment properties for additional cash resources
• Competitive remuneration and benefits packages for employees
• Risk management policy and system to oversee risks and implement controls
• Independent Non-Executive Directors ensure arm’s length operations from Vanke HK

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Favors service providers, contractors, suppliers, and business partners who follow environmentally friendly practices

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Appendix 27 to the Listing Rules (ESG Guide)

Certifications: ISO 9001 (Regent Centre estate manager since 2005), Quality Water Supply Scheme — Freshwater (Regent Centre since 2014)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Sustainability
• Governance

Environmental Achievements

• Reduced electricity consumption by 124,000 kWh in Regent Centre, resulting in approximately 68.2 tonnes of carbon emissions reduction.
• Achieved a Gold rating or above under the BEAM Plus certification program for the Chun Yeung Street Property.
• Recycled approximately 58,000 kg of paper in Regent Centre.

Social Achievements

• Maintained a safe workplace with no major accidents or work-related injuries.
• Provided training and development courses to 67% of employees.
• Supported various community investment initiatives, including donations to Heep Hong Society, a virtual race for the disabled, and the donation of surgical masks to the NHS.

Governance Achievements

• Established a co-department crisis risk management team to coordinate and respond to critical events.
• Implemented a strict anti-bribery and anti-corruption policy with annual integrity certification exams for all employees.
• Maintained zero customer information leakage.

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on business operations (extreme weather, flooding, water scarcity).
• COVID-19 pandemic impacting business operations and employee wellbeing.
• Employee turnover (16% in 2020).

Mitigation Strategies

• Integrated climate change risk management into yearly work focus; established a crisis management team.
• Implemented working from home protocols and enhanced workplace safety measures to mitigate COVID-19 risks.
• Implemented employee retention strategies including career development and advancement opportunities.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Favoring suppliers with environmental-friendly practices; considering small and medium enterprises; regular assessments and evaluations of suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, flooding, water supply shortages

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

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

Certifications: BEAM Plus (Gold), ISO 9001 (Regent Centre property management)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• environmental protection
• employee well-being

Environmental Achievements

• The Group is committed to build a better environment by adopting an environmental-friendly approach in its business operation. The Group is committed to complying with all applicable environmental laws and regulations in conducting its business. The Group aims to reduce emissions and optimise resources utilisation in its operation through the following approaches: (i) Enhancing the efficiency of use of resources in the Group’s business operation;(ii) Adopting the use of energy-efficient equipment across the Group’s properties and offices;(iii) Encouraging employees to minimise their daily use of resources such as electricity;(iv) Engaging tenants to adopt environmental-friendly initiatives to minimise their use of resources such as water and electricity consumption; (v) Providing support to tenants on environmental-friendly practices, for example, provision of recycling facilities;(vi) Encouraging contractors and/or service providers to adopt environmental-friendly practices in their design, services and products; (vii) Undertaking property development projects which is conducive to environmental protection and to obtain environmental certification such as BEAM Plus, LEED, China GBL, and other equivalent green building labels, where practicable; and (viii) Encouraging responsible investment by taking sustainability considerations into the Group’s investment decisions, where practicable.

Social Achievements

• Staff turnover rate was 15% in 2023 (2022: 33%). The average length of services of the employees in the Group, since the change of controlling shareholder of the Company to China Vanke in July 2012, was 2.8 years (31 December 2022: 2.3 year) as at 31 December 2023.
• The Company places tremendous emphasis on diversity (including gender diversity) across all levels of the Group. The Company will use its reasonable endeavors to maintain gender diversity at least at a level of 30% female representation in the workforce subject to any changes to the business model and needs that requires material deviation from the current gender diversity in workforce. Further, to support diversity across all facets, the Group is enhancing diversity and making inclusion efforts through employee networks, mentoring programmes, equitable hiring practices, policies and training for all employees to support inclusive behaviours.

Governance Achievements

• The Company is committed to a high standard of corporate governance practices and holds the view that strong corporate governance is prominent in developing the businesses of the Group and generating long-term profit and sustainable value for our shareholders.
• The Company has applied the principles of the Corporate Governance Code (the “CG Code”) set out in Appendix C1 (formerly known as Appendix 14) of the Listing Rules to its corporate governance structure and practices as described herein, complied with the code provisions set out in the CG Code during the year ended 31 December 2023, and disclosed information in this Report in accordance with the mandatory disclosure requirements, and to the extent applicable, the recommended disclosure, set out in the CG Code.

Climate Goals & Targets

Environmental Challenges

• Economic conditions and property market in Hong Kong and the US
• Business partners
• Financial resources to fund property acquisitions
• Staff continuity
• Reputation risk
• Competing interests

Mitigation Strategies

• The Group will monitor the foreign exchange exposures and take appropriate measures from time to time in order to minimise the Group’s foreign exchange exposures.
• The Group works closely with the Property Managers and the Estate Manager on all tenancy and property management affairs, including sourcing and assessment of tenants, rental receivable management and general property maintenance. In addition, regular meetings are held to facilitate two-way communications.
• The Group’s policy is to regularly monitor current and expected liquidity requirements and its compliance with lending covenants (if appropriate), to ensure that it maintains sufficient cash reserves to meet its liquidity requirements in the short and longer term.
• The Executive Directors periodically review the adequacy of the staffing of the Group by reference to the Group’s business requirements. Should there be employees recruited under the Group, their remuneration and benefit packages will be structured on market terms with regard to individual responsibility and performance.
• The Group has formulated a risk management policy having considered the requirements regarding internal control contained in the Corporate Governance Code contained in Appendix C1 (formerly known as Appendix 14) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Listing Rules”). A risk management system has been established to provide the Board of Directors and the management an effective oversight of the risks the Group is facing, promote accountability across the organisation and ensure efficient controls are in place to mitigate the top risks the Group is facing.
• The independent non-executive Directors, with the assistance of the financial controller and Company Secretary of the Company, exercise due care and skills in ensuring that the Group is capable of carrying on its business at arm’s length and independently from VPHK.

Supply Chain Management

Responsible Procurement

• The Group favours service providers, contractors, suppliers and business partners who follow environmental-friendly practices in providing their design, services and products and will continue to promote environmental awareness among the Group’s key stakeholders, including tenants, business partners, shareholders and employees, through ongoing communication and engagement.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: HKFRSs, IFRSs

Third-party Assurance: KPMG