Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Environment
• Health & Safety
• Corporate Governance

Environmental Achievements

• Met 2003 environmental targets (except VOC emissions)
• Launched BioWare range of compostable and biodegradable disposables

Social Achievements

• Reduced recordable incidents by a third at New Vienna site (USA) through safety training program
• Improved Lost Time Incident Frequency by 52% since 2004
• Implemented standardized accident reporting procedures and personal protective equipment at all Europe Rigid sites

Governance Achievements

• Complied with Corporate Governance Recommendation for Listed Companies
• Established a global Flexibles and Films organization
• Improved transparency in people practices

Climate Goals & Targets

Environmental Challenges

• Record high raw material prices
• Considerably weakened dollar
• Unstable economic outlook (particularly in the US)
• Increased competition from imports (Australia and New Zealand)
• Availability of skilled workforce (China)
• Increases in dairy costs affecting ice cream sales
• VOC emissions increase due to solvent-based printing ink intensive production

Mitigation Strategies

• Improved production and supply chain efficiencies
• Successful price management
• Investments in new manufacturing capacity (India, China, Thailand)
• Relocation of rigid packaging production from Hong Kong to Guangzhou, China
• Focus on improving profitability
• Considering strategic options for UK Consumer Goods business unit and all operations in South Africa
• Setting new environmental targets for 2011 (energy efficiency, CO2 emissions, waste reduction, waste recovery rate)

Supply Chain Management

Responsible Procurement

• Code of conduct for group suppliers

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• BioWare range
• Recycled fiber packaging
• Lightweight flexible packaging

Awards & Recognition

• Five Huhtamaki packages received global WorldStar 2007 awards
• Cyclero® application received the Alufoil Trophy 2007

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Received Green Office and Eco-Healthy Workplace awards for four consecutive years.
• Reduced Scope 3 GHG emissions by 39.8% compared to the previous year.
• Total GHG emissions decreased year-over-year, and GHG emissions intensity per building area decreased dramatically by 81.2% compared with 2018/19.

Social Achievements

• Achieved zero work-related fatalities and injuries for three consecutive years.
• Upgraded employee medical plan to offer better coverage.
• Awarded “Family-Friendly Employers” and “Awards for Breastfeeding Support”.

Governance Achievements

• Established an audit committee in accordance with Rule 3.21 of the Listing Rules.
• Adopted a “Policy for Director and Employee Dealings in the Company’s Securities”.

Climate Goals & Targets

Environmental Challenges

• Rapid deterioration of the external environment, US-China trade war, social unrest in Hong Kong, and the COVID-19 pandemic severely disrupted investment plans.
• Some enterprises in the investment portfolio experienced operational difficulties, reducing the value of equity investments and increasing the recovery risk of certain fixed income products.
• Unfavorable market environment due to the US-China trade war compounded by the COVID-19 pandemic.

Mitigation Strategies

• Exercised extra prudence on new equity investments and strived for maximum capital value and financing capability.
• Divested some debt instruments and listed securities to mitigate risks given the highly uncertain and volatile capital markets.
• Increased provision for impairment loss on investments.
• Increased the percentage of expected loss provisions on some debt instruments.

Supply Chain Management

Supplier Audits: Annual evaluation of existing suppliers.

Responsible Procurement

• Consideration of price, quality, delivery time, supplier reliability, and reputation.
• Gradual adoption of green procurement practices.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Appendix 27 of the Listing Rules

Certifications: Green Office and Eco-Healthy Workplace awards from WGO

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Green Office and Eco-Healthy Workplace awards from WGO
• Family-Friendly Employers Award
• Awards for Breastfeeding Support

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Employee Rights and Benefits
• Environmental Protection
• Product Responsibility
• Supply Chain Management
• Social Welfare

Environmental Achievements

• By 2023, reduce total GHG emissions by more than 9.5% compared to 2018.
• Achieved LEED Platinum Certification for Raycom Info Tech Park.
• Achieved WELL Platinum Certification for Raycom Property Investment office area.
• Achieved 3-Star Green Building Label for Raycom Info Tech Park Office Building B.
• Lenovo Wuhan Industrial Base awarded zero carbon industrial certificate.
• Lenovo increased use of recycled and renewable materials in packaging.
• Levima Advanced Materials achieved annual steam saving of approximately 209,000 tonnes through technical development.

Social Achievements

• Maintained 100% hazardous waste compliance disposal rate.
• Increased investment in social welfare.
• Supported employment and entrepreneurship of women in rural areas.
• Launched employee engagement survey, "Lenovo Listens", with record high participation and engagement scores.
• Provided various employee welfare benefits, including supplementary insurance and health programs.

Governance Achievements

• Established the Environmental, Social and Governance Committee.
• Revised Board Diversity Policy to gradually increase the number of female directors.
• Implemented comprehensive risk management system.
• Formulated and improved anti-fraud management policy and code of ethics for employees.
• Established whistle-blowing channels.

Climate Goals & Targets

Environmental Challenges

• Complex supply chains prone to hidden ESG risks.
• Stringent environmental regulations in advanced material industry.
• Potential cyber-attacks and data security breaches.
• Risks related to intellectual property protection.
• Compliance risks due to increasingly stringent regulations.

Mitigation Strategies

• Developed a system backed by contractual obligations to ensure supplier compliance with ESG standards.
• Increased investment in energy conservation and environmental protection.
• Formulated sound policies, robust incident response plans, and employee training on data protection.
• Took appropriate legal measures to protect intellectual property.
• Consistently monitored compliance policy adjustments and strengthened internal control and risk management.

Supply Chain Management

Supplier Audits: 288 (Legend Holdings and subsidiaries excluding Lenovo)

Responsible Procurement

• Code of Conduct for Suppliers
• Supplier sustainability requirements
• RBA VAP review and Factory of Champions (FOC) certification
• EcoVadis IQ Plus tool for supplier screening

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding
• Hurricanes
• Global warming and rising sea levels

Transition Risks

• Stricter climate-related laws and regulations
• Changing customer preferences
• Fluctuation in raw material prices

Opportunities

• Development of low-carbon products and services
• Energy efficiency improvements
• Opportunities in green economy markets
• Green investment and financing projects

Reporting Standards

Frameworks Used: HKSE Guide

Certifications: ISO 14001, ISO 45001, ISO 50001, ISO 9001, ISO/IEC 27001, LEED Platinum, WELL Platinum, 3-Star Green Building Label, Zero Carbon Plant

Sustainable Products & Innovation

• Lenovo Yoga Slim 9i (carbon neutral)
• Levima Advanced Materials EVA photovoltaic film materials and EOD special surfactant materials

Awards & Recognition

• Lenovo's inclusion in the list of "World’s Top 50 Most Innovative Companies"
• Lenovo's evergREen sustainable packaging awarded German Red Dot Winner Design Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Protection
• Employee Well-being
• Community Investment
• Sustainable Development

Environmental Achievements

• Achieved the highest overall score among property developers in Mainland China in the S&P Global Corporate Sustainability Assessment (CSA).
• Received the highest five-star rating once and four-star rating three times in the Global Real Estate Sustainability Benchmark (GRESB) assessment.
• Achieved a CDP climate change rating of B, marking the highest rating among property developers in Mainland China.
• Maintained a “Low” ESG risk rating from Morningstar Sustainalytics.
• Implemented Sino-Ocean Healthy Building System in more than 145 projects in 51 cities across China, covering an area of over 27 million sq.m.
• 30 projects completed WELL registration, 14 projects officially obtained WELL certification.

Social Achievements

• Launched Ocean Marathon health advocacy campaign to promote healthy exercise habits among employees and strengthen team cohesion.
• Implemented Employee Assistance Program (EAP) to provide support and care for employees.
• Organized 13 psychological resilience training sessions.
• Sino-Ocean Labor Union visited and sent care packages to nearly 12,000 employees.
• Launched a “Home Co-creation Program” in Southern China to build a new healthy living system.
• Donated approximately RMB546 million for social welfare, with over 600,000 beneficiaries.

Governance Achievements

• Maintained high standards of corporate governance practices.
• Established four Board Committees (Audit, Remuneration, Nomination, Strategic and Investment).
• Implemented a Whistleblowing Policy and Anti-fraud and Anti-bribery Policy.
• Complied with the requirements of the SFO and the Listing Rules with respect to the handling and dissemination of inside information.

Climate Goals & Targets

Environmental Challenges

• Continuous downturn in the overall real estate market in the PRC.
• Reduced cash collection from sales.
• Difficulty in asset disposal and refinancing.
• Liquidity pressure due to limited access to external capital.
• Various litigation cases for unpaid borrowings, outstanding payables, and delayed project delivery.

Mitigation Strategies

• Focused on high-quality delivery and sustainable operation.
• Proactive debt risk mitigation and business transformation.
• Holistic debt management for offshore debts.
• Extension for debts in domestic and offshore open markets.
• Stronger efforts in sales, asset disposal, and cost control.
• Working closely with financial advisors and legal counsels on debt assessment.
• Promoting asset-light agent construction business.
• Strict cost control measures.

Supply Chain Management

Supplier Audits: Supplier ESG assessments for four consecutive years

Responsible Procurement

• Sino-Ocean Group Code of Conduct for Suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRESB, CDP, MSCI ESG, S&P Global Corporate Sustainability Assessment (CSA), Morningstar Sustainalytics

Certifications: WELL

Sustainable Products & Innovation

• Sino-Ocean Healthy Building System

Awards & Recognition

• 2022 Real Estate Comprehensive Strength Enterprise (16th)
• 2023 Top 100 Real Estate Development Enterprises (17th)
• 2023 Top 500 Real Estate Development Enterprises in Comprehensive Strength (17th)
• 2023 Top 10 H-Share Comprehensive Strength Real Estate Enterprises
• Reputable Quality Pioneer Enterprise
• ESG Model Enterprise
• 2023 Fortune China 500 (321st)
• China Corporate Social Responsibility List (8th in all industries and 1st in the real estate industry)
• Enterprise of the Year with Value Product Power
• GRESB 4-star
• 2023 Carbon Neutral Pioneer Enterprise
• S&P CSA Annual Enterprise ESG Score (1st in the real estate industry in Mainland China)
• Responsible Enterprise for High-quality Delivery