Climate Change Data

Environmental Metrics

ESG Focus Areas

• Workplace Quality
• Environmental Protection
• Community Involvement
• Supply Chain Management
• Anti-Corruption
• Sustainability

Environmental Achievements

• 1.4% decrease in energy consumption (to 164,788 gigajoules)
• 1.5% decrease in water usage (to 352,571 cubic meters)
• 5.2% decrease in carbon emissions (to 30,319 tons of carbon dioxide)
• 261 tons of paper recycled
• Three Garden Road received a “Good Level” certificate under the Energywi$e Certificate Scheme
• Langham Place won “Gold” in the Hong Kong Green Awards – Green Management Award 2017

Social Achievements

• Safety Charter Signing Ceremony with major contractors
• OHSAS 18001 certification for Three Garden Road and Langham Place
• Langham Place received Gold Award (Best Property Safety Management)
• Internship program for university students
• Various staff wellness and interest activities (basketball club, baking classes, Christmas party)
• Langham Place received Silence’s Top 10 Social Inclusion Shopping Mall awards
• Langham Place received its sixth consecutive Enterprise Award from Hong Kong Star Brands

Governance Achievements

• Code of Conduct for all employees prohibiting bribery
• Tendering process for contracts valued at HK$100,000 or over
• Multiple supplier quotations for transactions over HK$5,000
• Anti-money laundering and counter-terrorist financing procedures in place

Climate Goals & Targets

Environmental Challenges

• Escalator incident at Langham Place Mall in March 2017

Mitigation Strategies

• Investigation report released by Electrical and Mechanical Services Department
• Supervised escalator service provider to expedite resumption and ensure safety
• Timely assistance to victims through ex-gratia allowances and insurance claim follow-up

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Similar or complementary policies and procedures regarding operating practices, workplace quality and environmental protection among main service providers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: OHSAS 18001, ISO 14001, ISO 9001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Hang Seng Sustainability Benchmark Index constituent member
• Hong Kong Green Organization (Three Garden Road)
• Hong Kong Green Awards – Green Management Award 2017 (Langham Place)

Environmental Metrics

ESG Focus Areas

• Customers and Value Chains
• Employees
• Environment
• Community

Environmental Achievements

• Reduced energy consumption by 4.5% (to 157,342 gigajoules)
• Reduced water usage by 5.7% (to 332,546 cubic meters)
• Reduced carbon emissions by 7.6% (to 28,003 tonnes of carbon dioxide equivalent)
• Upgraded lighting with energy-efficient LED luminaires
• Installed electric vehicle recharging stations
• Implemented daylight and carbon dioxide sensors to optimize energy use
• Increased recycling initiatives (paper, plastic bottles, aluminum cans, batteries)

Social Achievements

• Introduced wellness initiatives (yoga, Green Monday)
• Maintained 0% employee turnover rate
• Offered extensive apprenticeship opportunities (Harvard internship program, Project My Future)
• Implemented comprehensive employee benefit scheme
• Supported various charity events (Orbis Walk For Sight, WWF Earth Hour)
• Sponsored Musica del Cuore concert series
• Collaborated with Hans Andersen Club for underprivileged children

Governance Achievements

• Enforced vigorous anti-corruption policies
• Implemented robust risk management and internal control systems
• Adhered to stringent Code of Conduct
• Complied with all legal and regulatory requirements
• Implemented Supplier Code of Conduct

Climate Goals & Targets

Environmental Challenges

• Maintaining high standards of ESG performance in a fast-changing world
• Managing potential risks from various aspects (compliance, financial, operational, cyber, reputational)

Mitigation Strategies

• Regular risk assessments to set priorities for material ESG issues
• Effective risk management and internal control systems
• Proactive approach in mitigating potential risks
• Continuous development of novel initiatives to deliver high-quality services

Supply Chain Management

Supplier Audits: Suppliers required to fill in a Q&A checklist every three years to keep us informed of their compliance status.

Responsible Procurement

• Supplier Code of Conduct incorporated into tendering documents

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Stock Exchange of Hong Kong ESG Reporting Guide

Certifications: ISO 14001 (Langham Place & Three Garden Road), OHSAS 18001 (Langham Place & Three Garden Road), ISO 9001 (Langham Place & Three Garden Road)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Hang Seng Corporate Sustainability Benchmark Index constituent member (3 consecutive years)
• Langham Place: 10 awards in the 2017 Kowloon West Best Security Services Awards
• Three Garden Road: Honours in the Customer Relationship Excellence Awards 2017
• Langham Place: Silver Award at the 6th Best Property Safety Management Award (Best Safety Enhancement Programme)
• Langham Place: Workplace Charter from the Department of Health and Occupational Safety and Health Council
• Langham Place & Three Garden Road: Platinum Awards of Charter on External Lighting from the Environment Bureau
• Langham Place & Three Garden Road: Excellent Class Indoor Air Quality Awards
• Langham Place & Three Garden Road: Gold Certificates under the Quality Water Supply Scheme
• Three Garden Road: Energywi$e Certificate of Good Level & Wastewi$e Certificate of Excellence
• Langham Place: Certificate of Merit – Property Management (Commercial & Industrial) in the Hong Kong Awards for Environmental Excellence

Environmental Metrics

ESG Focus Areas

• Energy efficiency
• Carbon emissions reduction
• Water conservation
• Waste reduction
• Employee well-being
• Health and safety
• Stakeholder engagement
• Community investment
• Green building certifications
• Supply chain management
• Board governance
• ESG policy
• Climate change resilience
• Customer satisfaction

Environmental Achievements

• Reduced energy consumption by 6.6%
• Reduced carbon emissions by 6.2%
• Reduced water usage by 6.2%
• Achieved WELL Platinum certification for Three Garden Road and BEAM Plus Platinum certification for Langham Place Mall
• Global Real Estate Sustainability Benchmark — Green Star recognition & Grade A rating on Public Disclosure
• Hang Seng Corporate Sustainability Benchmark Index — Constituent of the index for four consecutive years
• The Chamber of HK Listed Companies — Award for Sustainability Excellence
• Hong Kong Management Association — Sustainability Grand Award
• Installation of solar panels at Langham Place Mall
• Upgraded lighting to energy-efficient LED luminaires
• Implementation of daylight sensors and occupancy sensors
• Optimized passenger lift systems
• Optimized chiller plants
• Reused water for irrigation at Three Garden Road
• Installed low-flow water faucets at Langham Place Mall
• Implemented various recycling initiatives
• Achieved Wastewise Certificate — Excellence Level for Three Garden Road
• Implemented demand control ventilation system at Three Garden Road carpark using IoT sensors

Social Achievements

• Maintained zero fatality and work injuries among employees
• Maintained IAQ Certification of Excellence Class every year for all premises
• Launched “Champion Our Wellness” initiatives
• Improved employee satisfaction rate to 64%
• Provided various training workshops for employees
• Introduced customer-friendly facilities such as self-ordering system, mobile app, and e-directories
• Improved accessibility for disabled customers
• Provided trainings for frontline employees in guiding visually impaired customers
• Organized “Champion Our Wellness” campaign including Chair Yoga Event and Mindful Eating Experience
• Supported the Trail Run Event
• Supported the Harvard China Student Internship Programme and other internship programs
• Supported Project My Future Internship Programme
• Organized various charitable events such as Blood Donation Day, Hidden Treasures of Hong Kong Photo Exhibition, and Christmas Gift Matching Donation Campaign

Governance Achievements

• Established a Sustainability Working Group chaired by the CEO
• Formally set up Nomination Committee (separate from Audit Committee)
• Strengthened ESG Framework and Policies
• Implemented a comprehensive risk management framework
• Implemented cyber security risk mitigation measures
• Implemented contingency plans and emergency measures in response to social unrest
• Introduced Supplier Code of Conduct
• Received no non-compliance complaints or penalties regarding anti-corruption

Climate Goals & Targets

Environmental Challenges

• Increasing prevalence of typhoons
• Social unrest in Hong Kong
• Potential risks associated with supply chain

Mitigation Strategies

• Implemented integrated emergency guidelines
• Installed safety net above skylight glass panes of Langham Place Mall
• Developed Climate Change Resilience Policy and mitigation plans
• Implemented well-thought-out contingency plans and emergency measures in response to social unrest
• Introduced Supplier Code of Conduct and regular reviews and assessments on service providers’ performance
• Conduct supply chain risk assessments

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct incorporated into tendering documents

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons
• Rising sea levels
• Flooding

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide

Certifications: ISO 14001, ISO 45001, WELL Platinum (Three Garden Road), BEAM Plus Existing Building Platinum (Langham Place Mall), Indoor Air Quality Certificate – Excellence Class

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Alignment with nine of the UN Sustainable Development Goals

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Global Real Estate Sustainability Benchmark — Green Star recognition & Grade A rating on Public Disclosure
• Hang Seng Corporate Sustainability Benchmark Index — Constituent of the index for four consecutive years
• The Chamber of HK Listed Companies — Award for Sustainability Excellence
• Hong Kong Management Association — Sustainability Grand Award
• Platinum Award of Charter on External Lighting (Three Garden Road and Langham Place)
• Hong Kong Green Organisation (Three Garden Road and Langham Place)
• Water Supplies Department’s Gold recognition of Quality Water Supply Scheme for Buildings (Fresh Water) (Three Garden Road and Langham Place)
• Wastewise Certificate — Excellence Level (Three Garden Road)
• Langham Place Mall received Honorable Managed Property Award of Kowloon West Best Security Services Awards

Environmental Metrics

ESG Focus Areas

• Climate Change
• Well-being
• Women Empowerment

Environmental Achievements

• Reduced energy consumption by 1.6% and carbon emissions by 19.5%
• Installed over 60 solar panels generating an estimated 25,700 kWh renewable energy per year
• Langham Place Mall became the first property in Hong Kong to obtain EDGE Certification
• Three Garden Road achieved the WELL Building Platinum Standard

Social Achievements

• Launched Women Empowerment Programme “Champion Mothers”, raising over HK$100,000 from charity sales
• Achieved 85% satisfaction rate among volunteers in the Women Empowerment Programme
• Maintained zero fatality and work injury rate
• Increased average training hours by 22.3% compared to 2020

Governance Achievements

• Secured first sustainability-linked loan (HK$3.0 billion) and sustainability-linked swap
• Established ESG Framework and Policies
• Drafted Managing Climate Risks and Resilience Policy

Climate Goals & Targets

Environmental Challenges

• Increased water usage due to more tenants resuming work post-COVID-19
• Climate-related risks such as extreme weather events
• Transition risks from tightening regulations and carbon neutral pledges

Mitigation Strategies

• Implementing various energy-saving initiatives (e.g., smart lighting, variable speed drives)
• Developing Climate Resilience Policy and mitigation plan
• Securing sustainability-linked loan and swap to align financial planning with sustainability objectives
• Exploring science-based target initiatives and Scope 3 emissions reduction

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct incorporated into tendering documents
• Green Purchasing Policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions (super typhoons, flooding)

Transition Risks

• Tightening regulations, carbon neutral pledges, Municipal Solid Waste Charging Scheme

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: HKEX’s ESG Reporting Guide, TCFD

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Aligned with nine of the United Nations’ SDGs

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Hong Kong Sustainability Grand Award
• Hong Kong Sustainability Award
• Special Recognition for Outstanding Sustainability Initiative (Social Dimension)
• Special Recognition for Outstanding Sustainability Initiative (Environmental Dimension)
• Special Recognition for Innovation
• Special Recognition for Best Response to COVID-19
• ESG Leading Enterprise Award
• Leading Social Initiative Award
• The ESG Leader: Platinum
• Outstanding ESG Company (Criteria set by Fund Managers): Platinum
• Newcomer Award: Commendation
• 2021 Most Committed to Social Causes
• Asia’s Best CSR
• Best in Environmental Responsibility
• 10 Years Plus Caring Company 2021/22
• Facilities Management Team Award 2021: Merit
• Facility Management Technology Award: Winner
• Environmental Stewardship Award: Certificate of Excellence
• Innovation Award: Certificate of Excellence
• Energywi$e Certificate: Excellence Level
• IAQwi$e Certificate: Excellence Level
• Wastewi$e Certificate: Excellence Level
• Commendation Scheme on Source Separation of Commercial and Industrial Waste 2020/21: Certificate of Merit
• Indoor Air Quality Certificate: Excellent Class
• Outstanding Building Energy Efficiency performance (Existing Building)
• No Air Con Night 2020: Certificate of Appreciation
• Quality Water Supply Scheme for Buildings: Gold
• Certificate of Carbon Reduction
• Certificate of Appreciation (Natural Christmas Trees Recycling Programme)
• Certificate of Appreciation (Peach Blossom Trees Recycling Programme)
• Certificate of Appreciation (Lai See Reuse and Recycle Programme)
• Anti-Epidemic Hygiene Measures Certification
• Business Resilience & Community Contribution Awards 2021: Gold Seal
• Kowloon West Best Security Services Award 2020
• 2020 Security Services Best Training Award: Gold
• Caring Company
• Fair Trade Award 2020: Silver Award
• List of Barrier-free Company/Organisation 2020/21

Environmental Metrics

ESG Focus Areas

• Climate resilience
• Wellness
• Diversity and inclusion

Environmental Achievements

• Reduced energy consumption by 8.3%
• Reduced carbon emissions by 8.2%
• Reduced water usage by 5.9%
• Collected 18,067 kg of food waste, equivalent to a reduction of 10,394 kg of greenhouse gas emissions
• Three Garden Road achieved BEAM Plus Platinum rating with the highest score among existing buildings in Hong Kong
• Langham Place Mall achieved BEAM Plus Platinum rating and EDGE Level 1 certification

Social Achievements

• Conducted employee well-being survey with improvement plan
• Implemented anti-pandemic measures
• Conducted singing bowl experience workshops and health talks for both employees and tenants
• Resumed “Musica del Cuore” classical music concert series
• Rolled out “Love · Play · Farm” initiative
• Over 450 people benefited from community events

Governance Achievements

• Formalised Managing Climate Risks and Resilience Policy and mitigation plan
• Established ESG Framework and Policies
• Secured a second HK$1.0 billion sustainability-linked loan
• Female representation among Board of Directors is 28.5%

Climate Goals & Targets

Environmental Challenges

• Extreme weather events increasing operating and maintenance costs
• Change in rainfall patterns and variability in weather patterns, rising temperature and sea levels
• Stricter climate policies and emissions reporting obligations
• Increase in capital cost by transition to lower emissions technology
• Shifting stakeholder preferences with regards to climate change

Mitigation Strategies

• Utilising sustainable resources to enhance resilience
• Incorporating climate resilient features into amenity upgrades
• Committing to compliance with energy-saving promises and regularly monitoring mandates and regulations
• Implementing carbon reduction measures and carrying out feasibility studies
• Comparing to peers and global benchmarks to identify room for improvement

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Green Purchasing Policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (super typhoons and flooding)
• Change in rainfall patterns, rising temperature and sea levels

Transition Risks

• Government and legal policy changes
• Technological changes
• Market and reputational risks

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: HKEX’s ESG Reporting Guide

Certifications: ISO 14001, ISO 45001, ISO 9001

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

UN Sustainable Development Goals

• Not disclosed

Sustainable Products & Innovation

• Organic Mint Lemonade drink

Awards & Recognition

• Hong Kong ESG Reporting Awards 2022 (Outstanding ESG Improvement Commendation Award)
• Hong Kong Management Association Best Annual Report Award 2022 (Certificate of Excellence in Environmental, Social and Governance Award)
• WELL Building Core & Shell Platinum - Three Garden Road
• Hong Kong Management Association Hong Kong Sustainability Award 2022 (Distinction Award, Special Awards for Excellence in Social Sustainability Initiative, Innovation, and Pandemic Resilience)
• Bloomberg Businessweek Chinese Edition ESG Leading Enterprise Awards 2022 (ESG Leading Enterprise Award, Theme Award: Crisis Management)
• GRESB Real Estate Assessment 2022 (Green Star Recognition; Grade A Rating on Public Disclosure)
• BEAM Plus Existing Building Platinum - Langham Place Mall - Three Garden Road
• EDGE Green Building Certification Scheme Level 1: EDGE Certified (Langham Place Mall)

Environmental Metrics

ESG Focus Areas

• Energy and carbon emissions
• Renewable energy
• Sustainable and climate-resilient buildings
• Innovative technology
• Climate change adaptation and mitigation
• Stakeholder engagement
• Supply chain management
• Sustainable procurement
• Anti-corruption
• Health and safety
• Stakeholders’ wellness
• Community engagement
• Diversity and inclusion
• Women empowerment
• Board oversight and governance
• Collaboration
• Community investment
• Capacity building

Environmental Achievements

• Reduced energy consumption by 0.3% in 2023
• Reduced water usage by 7.5% in 2023
• Collected 22,690 kg food waste for waste-to-energy conversion, equivalent to reducing over 10,000 kg greenhouse gas emissions
• Installed over 40 EV charging stations
• Achieved BEAM Plus Platinum Existing Buildings rating (Langham Place Office Tower)
• 100% of properties attained various key green building certifications

Social Achievements

• Rolled out a series of wellness events, such as the “waste-to-farm-to-table” workshop and “Musica del Cuore” concerts
• Average volunteer service hours increased over 100% from base year
• Over 10,000 people benefited from community events
• Conducted employee well-being survey with improvement plan
• Increase of over 100% in average training hours of our employees compared with 2022
• Integrated social inclusion elements into various initiatives

Governance Achievements

• Established Environmental Guidelines for Tenants
• Arranged four sustainability-linked banking facilities totaling HK$6.0 billion
• Placed green deposits with local banks
• Established integrated ESG Framework and Policies
• Aligned with our parent group’s 2045 Net Zero Commitment through Climate Leadership Strategy

Climate Goals & Targets

Environmental Challenges

• Slight increase of 0.7% in carbon emissions due to increased traffic with the return of business and society normalcy from COVID-19
• Climate change risks (typhoons, rainfall floods, landslides, extreme heat)
• Government policy and legal changes
• Technological shifts
• Market and reputation changes

Mitigation Strategies

• Leveraging smart and green building technologies
• Installation and enhancement of existing system and equipment
• Training, procedural guidelines and contingency drills
• Reinforcement work for equipment and buildings
• Regular review of heating, ventilation, and air conditioning equipment
• Sustainable materials to reduce heat gain
• Physical-wellness oriented measures
• Closely monitor the latest mandates and regulations
• Seek insights from external consultants
• Obtain more internationally recognised building certifications
• Explore waste diversion method
• Tap into different financial resources
• Leverage AI optimisation of building operation
• Maintain timely disclosure
• Engage tenants to collaborate on decarbonisation
• Provide training and necessary support for tenants

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Green Purchasing Policy
• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Typhoon
• Rainfall flood
• Landslide
• Extreme heat

Transition Risks

• Government Policy and Legal changes
• Technological shifts
• Market and Reputation changes

Opportunities

• Development of energy-efficient products and services
• Investment in PropTech and low-carbon technologies

Reporting Standards

Frameworks Used: HKEX’s ESG Reporting Guide, GRI Standards 2021, TCFD, IFRS S2

Certifications: ISO 14001, ISO 45001, ISO 9001

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

UN Sustainable Development Goals

• Goal 3
• Goal 7
• Goal 11
• Goal 12
• Goal 13
• Goal 17

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Hong Kong Sustainability Award 2023 — Grand Award, Distinction Award, Excellence in Economic Sustainability Initiative, Excellence in Environmental Sustainability Initiative
• Hong Kong ESG Reporting Awards 2023 — Best ESG Report (Mid-cap) Commendation, Excellence in ESG Governance Commendation
• Bloomberg Businessweek Chinese Edition ESG Leading Enterprise Awards 2023 — ESG Leading Enterprise Award, Leading Environmental Initiative
• RICS Awards Hong Kong 2023 — Corporate Social Responsibility Project of the Year – Highly Commended (Love ∙ Play ∙ Farm)
• Hong Kong Green Shop Alliance Award 2023 — Collaborative Project of the Year (Circular Economy), Green Mall of the Year
• UNSDG Achievement Awards Hong Kong 2023 — Individual SDG Award – Goal 17: Partnerships For The Goals (Love ∙ Play ∙ Farm)
• Fair Trade Hong Kong Fair Trade Award 2022/23 — Platinum