Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Corporate Governance

Environmental Achievements

• Shanghai Xintiandi community became the world’s first WELL Community-certified project.
• 9.05 million square meters of projects achieved LEED-ND Stage 2 Gold level Certification.
• Ranked first among developers in mainland China in terms of LEED-ND Stage 2 Gold level certification.
• Ranked first among developers in Shanghai in terms of projects awarded the China Green Building Label (Operation) in 2019.
• KIC development in Shanghai won the Urban Land Institute (ULI) Global Award for Excellence and the ULI Asia Pacific Award for Excellence.
• Foshan Lingnan Tiandi Development won a ULI Global Award for Excellence and a ULI Asia Pacific Award for Excellence.
• Per unit carbon emissions in 2019 represented a 31.58% decrease from baseline year 2011.
• Issued first green bond (US$300 million).

Social Achievements

• KIC development in Shanghai won the Urban Land Institute (ULI) Global Award for Excellence.
• Foshan Lingnan Tiandi Development won a ULI Global Award for Excellence.
• Organized more than 1,100 cultural events.

Governance Achievements

• Received several awards including Hong Kong Sustainability Award 2018/19, Certificate of Excellence – ESG Leading Enterprises 2019, Platinum Award – Excellence in Environmental, Social, and Governance.

Climate Goals & Targets

Environmental Challenges

• Global geopolitical tensions and economic volatility.
• COVID-19 pandemic.

Mitigation Strategies

• Asset Light Strategy
• Exploring and evolving sustainable corporate strategies and business model.
• New ten-year sustainable development strategy ('5Cs': Clean, Culture, Community, Care and Corporate Governance).

Supply Chain Management

Responsible Procurement

• Requirements for Site Safety, Environmental Protection and Workers’ Health (HSE)
• Shui On’s Standard Material and Workmanship Requirements
• Requirements for Building Materials of Green Environmental Projection Projects

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events such as rainstorms and hurricanes

Reporting Standards

Frameworks Used: HKEX Environmental, Social and Governance Reporting Guide

Third-party Assurance: TÜV Rheinland

Awards & Recognition

• Hong Kong Sustainability Award 2018/19 Certificate of Excellence
• Certificate of Excellence – ESG Leading Enterprises 2019
• Platinum Award – Excellence in Environmental, Social, and Governance
• 2019 Top 10 Green Real Estate (Commercial) in China
• 2019 Top 20 Green Real Estate in China
• 2019 Green Credit Index Top 50 of Chinese Housing Enterprises
• 2019 Top 30 China Most Competitive Green Development
• Rated A in the HKQAA (HIS ESG) rating system in 2019

Environmental Metrics

ESG Focus Areas

• Clean
• Community
• Culture
• Care
• Corporate Governance

Environmental Achievements

• 20% decrease in Scope 1 and 2 carbon emissions intensity from 2020
• 1,239 tonnes of waste diverted from landfill and sent to recycling
• 14% decrease in water intensity from 2020
• 100% renewable electricity for Horizon shopping malls in Wuhan Tiandi

Social Achievements

• Inclusion in Bloomberg Gender-Equality Index
• Rolled out the Green Menu initiative for food and beverage tenants
• 3,099 volunteer hours contributed by employees
• 94.7% overall residential customer satisfaction rate

Governance Achievements

• First China-based developer to successfully issue a Sustainability-Linked Bond (SLB)

Climate Goals & Targets

Environmental Challenges

• Increased energy consumption due to post-pandemic activity rebound
• Increased construction waste compared to 2020 (abnormally low year)

Mitigation Strategies

• Developing efficiency strategies to reduce carbon emissions intensity
• Implementing a pilot waste management data collection and tracking system
• Partnership with Honeywell for integrated energy management platform

Supply Chain Management

Supplier Audits: Quarterly performance evaluations

Responsible Procurement

• Health, Safety and Environment Handbook
• Supplier evaluation system
• Code of Conduct and Business Ethics
• Sustainability Supplier and Procurement Policy

Climate-Related Risks & Opportunities

Physical Risks

• Heatwaves and rising temperatures
• Extreme weather events

Transition Risks

• Carbon pricing and carbon tax
• Building codes and standards

Opportunities

• Consumer preference for green buildings
• Green finance incentives

Reporting Standards

Frameworks Used: GRI Standards 2016, TCFD, SASB

Certifications: Null

Third-party Assurance: TÜV Rheinland (for greenhouse gas emissions)

UN Sustainable Development Goals

• Goal 3
• Goal 6
• Goal 9
• Goal 11
• Goal 12
• Goal 13
• Goal 17

Various initiatives aligning with SDG targets and indicators

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Asset Magazine: Best Sustainability-linked Bond for Hong Kong
• ULI Asia Pacific Awards for Excellence
• ULI Global Award for Excellence
• RICS Awards China 2021: Winner of Urban Regeneration of the Year

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Efficiency
• Sustainable Development

Environmental Achievements

• Reduced Scope 1 and 2 GHG emissions intensity by 50.97% from 2019 baseline in 2022
• Achieved a 66.3% reduction in Scope 1 and 2 GHG emissions intensity since 2011

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Difficulty in deriving reliable and accurate data around Scope 3 GHG emissions, especially embodied carbon data

Mitigation Strategies

• Intends to include Scope 3 GHG emissions for its 2030 SBTi targets and step up efforts to reduce embodied carbon and GHG emissions from tenants

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GHG Protocol

Certifications: LEED CS, LEED CI, WELL, China Green Building Label

Third-party Assurance: Sustainalytics

UN Sustainable Development Goals

• SDG 7, SDG 9, SDG 11

Target to reduce carbon intensity aligns with UN SDG 7 - Affordable and Clean Energy, UN SDG 9 - Industry, Innovation and Infrastructure and UN SDG 11 – Sustainable Cities and Communities

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Community
• Clean
• Culture
• Care
• Corporate Governance

Environmental Achievements

• Obtained SBTi approval for 1.5°C-aligned science-based targets in July 2023
• Conducted climate change physical risk scenario analysis at the project level for all development sites and assets under management
• Over 96% of existing assets by GFA obtained either green or healthy building certifications
• Signed a MoU with The Nature Conservancy to advance urban biodiversity conservation
• 46% decrease in Scope 1 and 2 carbon emissions intensity from the 2019 baseline year for SXTD assets
• 17,506 tons of waste were diverted from landfill for recycling for SXTD assets
• Formed a strategic partnership with the CLP Group to collaborate on the supply of green power in commercial properties

Social Achievements

• Deep Green Lease Program won the RICS China Sustainability Award
• 97% of F&B tenants, 89% of retail tenants, and 83% of office tenants joined the Green Pledge program
• Collaborated with the Well Living Lab for a Healthy Community study
• Implemented the SOL Cloud Construction System for ESG management in the supply chain
• Strengthened SOL’s Historical Building Preservation and Revitalization Framework
• Partnered with Tongji University on an urban regeneration talent development program
• Enhanced the “CREATORS 100” arts and culture program and the “RanRan” Young Artist Incubation Program
• Organized 63 events to foster community engagement
• Became a signatory to the United Nations Women’s Empowerment Principles
• Enhanced “Your Voice” employee engagement survey
• Achieved an average of 32 training hours for each employee
• Over 11,900 volunteer hours contributed

Governance Achievements

• Extended compensation-linked sustainability KPIs to department heads and project heads
• Overhauled the Crisis Management Manual and bolstered crisis management training
• Issued the largest private green-mortgage-backed onshore CMBS in Mainland China, with a total value of RMB 4.4 billion
• Diversified the Board by appointing a second female Independent Non-Executive Director

Climate Goals & Targets

Environmental Challenges

• Difficult operating environment due to elevated inflation, high interest rates, and heightened geopolitical risks
• Considerable slowdown in Wuhan’s residential market
• Resumption of business activities after the COVID-19 pandemic leading to increased energy and water intensity

Mitigation Strategies

• Strategic focus on “Best-in-Class” products and services in premium markets
• Implementation of various strategies to achieve SBTi-approved objectives (Deep Green Lease Program, phasing out fossil-based company vehicles, endorsing renewable energy)
• Strategic cooperation framework with the CLP Group for zero-carbon energy and green power initiatives
• Continuous monitoring of market risks and seizing new opportunities
• Implementation of AI technology in chiller plant systems for energy efficiency
• Introduction of the Circular Furnishing Service for tenants

Supply Chain Management

Supplier Audits: Quarterly assessments; all suppliers met performance benchmarks (2023)

Responsible Procurement

• Supplier Code of Conduct
• Sustainability Supplier and Procurement Policy (Type I environmental labeling)
• Annual supplier meeting
• Supplier and Contractor Forum

Climate-Related Risks & Opportunities

Physical Risks

• Extreme heat
• River flood
• Extreme precipitation

Transition Risks

• Carbon pricing and carbon tax
• Building codes and standards

Opportunities

• Consumer preference for climate-resilient and green buildings
• Green finance

Reporting Standards

Frameworks Used: GRI Standards 2021, HKEX ESG Reporting Guide, SASB for Real Estate Sector Disclosure, TCFD recommendations, IFRS S2 Climate-related Disclosures

Certifications: ISO 9001, ISO 50001:2018, ISO 14001:2015, ISO 45001, ISO 27001, ISO 27701, LEED, WELL, China Green Building Label, China Healthy Building Label

Third-party Assurance: Hong Kong Quality Assurance Agency (HKQAA)

UN Sustainable Development Goals

• Goal 7
• Goal 11
• Goal 12
• Goal 13
• Goal 16
• Goal 17

The 5C Sustainability Strategy contributes to these goals through various initiatives

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 2023 China Social Responsibility Ranking – Environmental Ecological Contribution Award
• YICAI ESG Leading Enterprise Awards
• Bloomberg Businessweek/Chinese Edition 2023 Chinese Green and Low-carbon Real Estate (Private Enterprise) TOP10
• 2023 China Green Low-carbon Real Estate Index TOP20
• Green Ranking Fortune China ESG Influential Listing 2023
• IDC Sustainability Spotlight Program – Sustainable Social Impact
• RICS China Awards 2023: Sustainability Achievement of the Year
• 2023 Carbon Neutrality Excellence Award
• 2023 Carbon Neutrality Exemplary Enterprise
• 2023 (Industry) Influential Brand
• The 1st CRECCHKI Real Estate ESG Awards GBA 2023
• Red Dot Award: Brands & Communication Design 2023
• 2023 ULI Asia Pacific Awards for Excellence
• IRA 9th Investor Relations Awards 2023
• HKIRA 9th Investor Relations Awards 2023
• 13th Asian Excellence Award 2023
• MIPIM Asia Awards
• Best Companies to Work For In Asia 2023
• 2023 Ding Ge Award