Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social Responsibility
• Governance

Environmental Achievements

• Changed to LED energy-saving lamps, saving electricity consumption of about 170,000 kilo-Watt-hour

Social Achievements

• Accident rate of 5.181 cases per thousand workers with no deaths.
• All employees participated in training covering work safety, professional skills, leadership, and execution.
• Supported community poverty alleviation works, funded students with financial difficulties, and organized volunteering activities.

Governance Achievements

• Established an integrity management system and developed policies and measures against bribery, extortion, fraud, and money laundering.
• Developed management policies for the assessment, selection, and management of suppliers, requiring compliance with a code of corporate social responsibility.

Climate Goals & Targets

Environmental Challenges

• Logistic business of China Urban Integrated Logistics Hub is in its infancy.
• Lack of sophisticated data collection system for monitoring and collating ESG data across all operations.

Mitigation Strategies

• Focus on Shenzhen South China Logistic Park for the first ESG report.
• Establishing a sophisticated data collection system for future reporting.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Requires suppliers to respect international principles of fair business practices, human rights, environmental protection, labor safety, and the prohibition of child labor.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Environmental, Social and Governance Reporting Guide (issued by The Stock Exchange of Hong Kong Limited)

Certifications: Null

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

• Anti-corruption
• Employment management system
• Safe and healthy working environment
• Green development
• Community investment

Environmental Achievements

• Reduced greenhouse gas intensity (calculated by area) by 17.24% compared to 2019.
• Decreased nitrogen oxides, sulphur oxides, and respirable suspended particulates compared to 2019.
• Installed charging piles in certain logistics parks and promoted the use of new energy tools.

Social Achievements

• Granted a three-month waiver of rental payment to tenants in 20 logistics parks to alleviate the burden during the COVID-19 pandemic.
• Donated approximately RMB5.32 million to Hubei during the COVID-19 pandemic.
• Invested a total of RMB15 million in poverty alleviation in Xinmin Village, Heyuan, Guangdong Province, lifting all poor households out of poverty.

Governance Achievements

• Established an effective risk management and internal control system, including quarterly and annual risk assessments.
• Established whistle-blowing procedures for all employees to report improper conduct.
• No corruption litigation or non-compliance with significant impact during the year.

Climate Goals & Targets

Environmental Challenges

• Impact of COVID-19 pandemic on various business sectors.
• Stringent national environmental protection standards and potential reduction in fiscal and tax subsidies for environmental protection.
• Ensuring internal management capability meets the demands of new business models.

Mitigation Strategies

• Formulated corresponding policies and measures for material issues identified by stakeholders.
• Promptly understanding changes in environmental protection policies and considering corresponding measures.
• Establishing a long-term incentive mechanism and talent cultivation program; establishing a reserve talent pool and commencing training.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Strict supplier selection criteria based on environmental and social requirements, including SHE management agreements.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions (hurricanes, floods, mudslides)

Transition Risks

• Stringent national environmental protection standards, reduced subsidies for environmental protection

Opportunities

• Development of energy-efficient products and smart logistics

Reporting Standards

Frameworks Used: Rules Governing the Listing of Securities on the Stock Exchange

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 2020 Social Responsibility Contribution Awards for the PRC Logistics Industry
• Advanced Pandemic Fighting Enterprise in the PRC Logistics Industry

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Employment and labor practices
• Operating practices
• Community
• Others

Environmental Achievements

• Greenhouse gas intensity (by area) decreased by 33.33% compared to 2021.
• Successfully obtained LEED-CS Platinum Certification for Yidu Building, saving 335,200 kWh of electricity annually.
• Shenzhen Liguang Project achieved environmental goals of high green space rate and low air pollutant emissions.
• Hangzhou Project Phase I achieved 95% rooftop photovoltaic coverage rate.
• Nanjing Xiba Port's quayside power supply project is expected to reduce ship carbon emissions by 550 metric tonnes annually.

Social Achievements

• Ranked 18th in the “Social Responsibility of Local State-owned Enterprises Pioneer 100 Index”.
• Implemented “Three Togethers” training program for employee development and community engagement.
• Donated 124 computers to Guangdong Education Foundation.
• Established Shenzhen-Hong Kong cross-border transportation centralized connection stations to support Hong Kong during the pandemic.

Governance Achievements

• Established a three-year compliance management plan.
• Implemented a whistleblowing policy for misconduct.
• All Board members attended integrity and anti-corruption training for over 50 hours.

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on port and logistics operations (flooding, extreme weather).
• Employee health and safety risks in expanding operations.
• Network and information security risks due to digital transformation.
• Increased air pollutant emissions due to expanded reporting boundary and project renovations.

Mitigation Strategies

• Formulating sustainability strategies and building a low-carbon operation model.
• Conducting pre-job safety training and providing insurance coverage for employees.
• Implementing a two-pronged approach in management and technology to enhance cyber security.
• Improving data collection methods and conducting internal discussions to set long-term emissions reduction targets.

Supply Chain Management

Responsible Procurement

• ESG elements added to supplier requirements (employee safety, emissions, waste).

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (hurricanes, floods) impacting port and logistics operations.

Transition Risks

• Rising energy and carbon prices, policy tightening.

Opportunities

• Development of energy-efficient products and services, green finance opportunities.

Reporting Standards

Frameworks Used: Appendix 27 to the Rules Governing the Listing of Securities on the Stock Exchange

Certifications: LEED-CS Platinum

Awards & Recognition

• 18th in the “Social Responsibility of Local State-owned Enterprises Pioneer 100 Index”, Guangdong-Hong Kong-Macao Outstanding Contribution Enterprise Award, Shenzhen Top 10 Brands of Real Estate Enterprises of the Year, Bay Area Property of the Year Award, Quam IR Awards 2021 (Sustainable Development Category – Silver Award)