Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Care for customers
• Community prosperity
• Care for employees
• Business operations

Environmental Achievements

• 85.83% of newly launched projects were industrialized construction projects
• Waste sorting projects in 52 cities nationwide, involving 378 residential communities, 263 office buildings and 52 “zero-waste office” projects
• Built and operated the Botanic Garden of International Horticultural Exhibition, which had received over 2.53 million visitors

Social Achievements

• Continued to contribute to targeted poverty alleviation and rural vitalization
• Donated RMB 120 million to build Shouning Dongqu Middle School, and relocate 25,000 households from four counties (cities)
• Donated RMB 100 million to relief efforts during COVID-19 outbreak
• VX Logistic Properties opened 59 logistics parks in 27 cities across the country for free during COVID-19 outbreak

Governance Achievements

• Consummated the corporate social responsibility (CSR) management framework and developed a three-tier management structure led by the Board of Directors
• Won a number of awards in 2019, including “Best A-Share Listed Company of Real Estate Industry Award” and “Gold Quality” Corporate Governance Award

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to climate events (implied)
• Challenges in rural areas such as lack of public facilities, backward living environment and insufficient industrial development
• COVID-19 pandemic

Mitigation Strategies

• Developed alternative sourcing strategies (implied)
• Implemented systematic investigation and analysis of rural areas, and improved rural environment by renovating the public space and promoting red culture
• Marshalled manpower, material and financial resources to contain the pandemic, and cooperated with governments at all levels to protect public health

Supply Chain Management

Supplier Audits: 1,563 suppliers assessed

Responsible Procurement

• Green procurement practices
• Sunshine Cooperation Agreement

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact, ISO 26000:2010, GRI Sustainability Reporting Standards, GB/T36001-2015, CASS-CSR 4.0, HK-ESG

Certifications: ISO 9001, ISO 14001, OHSAS 18001

Sustainable Products & Innovation

• Prefabricated buildings
• Green buildings
• Formaldehyde-free products

Awards & Recognition

• 254th on the Fortune Global 500 list
• Best A-Share Listed Company of Real Estate Industry Award
• Gold Quality Corporate Governance Award
• Asia-Pacific leader in residential property development (GRESB)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Completed the research and practical application of PC stair weight reduction and non-reinforcing laminated floor slabs
• Area of all Vanke new buildings complied with the green building standard in 2020
• Implemented waste classification in 52 cities across the country, covering 641 residential compounds, 307 office buildings, 91 zero-waste schools and 52 zero-waste office projects

Social Achievements

• Launched the Beautiful Community Event and completed the renovation and upgrading of 1,103 old projects
• Established the Vanke’er Customer Service Festival
• Donated RMB 579 million to support targeted poverty alleviation and rural revitalization

Governance Achievements

• Revised the Rules for the Implementation of the Board of Directors Remuneration and Nomination Committee to consider board diversity
• Invited to the second China (Shenzhen) Board of Directors Diversity Forum and initiated the Xiangmi Lake Female Board Member Initiative
• Won numerous awards including “Best A-Share Listed Company of Real Estate Industry Award”, “China Best Listed Company”, and “Best Listed Company”

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacted project timelines and resource supply
• Soil pollution risks on some plots
• Water pollution risks in some areas

Mitigation Strategies

• Project team worked closely with local government to address pandemic-related delays
• Conducted soil pollution survey and remediation projects
• Conducted water pollution risk surveys and proposed water quality assurance measures

Supply Chain Management

Supplier Audits: 100% of contractors subject to training on quality, business ethics and construction safety topics

Responsible Procurement

• Green procurement white lists and green list
• Sunshine Cooperation Agreement

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact, ISO 26000:2010, GRI Standards, SASB Standards, HK-ESG, CASS-CSR 4.0

Certifications: ISO 9001, ISO 14001, OHSAS 18001 (Onewo and 35 property service companies), BEAM Plus Gold (Vanke Le Pont Project), BREEAM Excellent (Vanke Ryder Court Office Project), WELL GOLD PRECERTIFICATION (Yulongshan Yuezhuang Project)

Sustainable Products & Innovation

• Healthy residential products
• Green building materials

Awards & Recognition

• 208th on the Fortune Global 500 list
• Best A-share Listed Real Estate Company Award
• China Top 50 Listed Real Estate Companies in ESG Best Practice 2020 (1st place)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Green Development
• Housing Industrialization
• Corporate Governance
• Employee Well-being
• Supply Chain Sustainability
• Community Engagement
• Zero-Waste Initiatives
• Biodiversity Conservation

Environmental Achievements

• Cumulative GFA of Green Building exceeded 327.91 million m²
• The Ratio of Housing Industrialisation Projects to New Construction Projects 90%
• Introducing Renewable Energy Design in 48% of Property Development Projects
• Number of Community Waste Management Projects 118
• Shanghai Fengxian Lingang Logistics Park certified as a net-zero carbon building project
• Significant carbon emission reductions achieved in Shanghai Jiading NEXUS project (5,052 tCO2e per year)

Social Achievements

• Launched and hosted the Run for Fun series, motivating more people to join the fitness-for-all program
• Average Annual Training Hours per Employee 25.6 hours
• Percentage of Female Employees 45%
• Safety Training Coverage Rate for Employees and Construction Contractors 100%
• External Donation Amount RMB117 million
• Implemented a “3+1” training management system to empower grassroots employees

Governance Achievements

• Annual integrity training conducted for all employees and Board members
• Established and refined information security management system
• 100% signing rate for Sunshine Cooperation Agreement
• No major information security incidents in 2023
• Consistently upholds honest and compliant operations

Climate Goals & Targets

Environmental Challenges

• Unprecedented challenges in industry transformation
• Climate change risks (physical and transition risks)
• Supply chain disruptions
• Soil contamination in some brownfield sites

Mitigation Strategies

• Proactive embrace of carbon peaking and carbon neutrality policies
• Alignment with UN SDGs
• Robust operations and consolidation of bottom line
• Green and low-carbon transformation
• Climate risk management practices aligned with TCFD framework
• Development of alternative sourcing strategies
• Soil remediation projects

Supply Chain Management

Supplier Audits: 100% due diligence coverage of suppliers

Responsible Procurement

• Supplier Code of Conduct
• Sunshine Cooperation Agreement
• Green Supply Chain Action participation
• Environmental compliance screening
• AUPUP platform for supplier collaboration

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons
• Extreme precipitation
• Floods
• Extreme heat waves
• Droughts
• Extreme cold weather
• Temperature rises
• Water resource pressure
• Sea level rises
• Land desertification

Transition Risks

• Carbon pricing
• Environmental information disclosure requirements
• Raw material cost and supply
• Green building technologies
• Energy structure and energy use
• Green building targets and standards
• Waste management standards
• Changing customer preferences

Opportunities

• Green financing
• Ultra-low energy building technologies
• Renewable energy use
• Changing customer preferences
• Opportunities to empower green buildings

Reporting Standards

Frameworks Used: UN Global Compact, ISO 26000:2010, GRI Standards, GB/T36001-2015, SASB Standard, HK-ESG, TCFD, TNFD, CASS-CSR5.0

Certifications: LEED, ISO 14001, ISO 45001, ISO 9001, ISO 27001, ISO 27701

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 5
• SDG 8
• SDG 9
• SDG 10
• SDG 11
• SDG 12
• SDG 13
• SDG 15
• SDG 17

Vanke's initiatives contribute to these SDGs through various programs related to health, education, gender equality, economic growth, infrastructure, sustainable cities, responsible consumption, climate action, land protection, and partnerships.

Sustainable Products & Innovation

• Ultra-thin stone
• New inorganic anti-mould coating
• Aerogel insulation materials
• Low-noise vibrators
• Prefabricated building components

Awards & Recognition

• Hang Seng Corporate Sustainability Index Series A+ rating
• CNI Index ESG rating AAA
• Various awards from government agencies, industry organizations, and media