Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Supply chain management
• Energy use
• Product quality and safety
• Energy-saving & emission reduction measures
• Customer satisfaction
• Occupational health and safety
• Customer privacy protection
• Career development and training
• Anti-corruption
• Diversified and equal work environment
• Community investment
• Recruitment

Environmental Achievements

• Used environment-friendly devices such as T5 lighting and LED bulbs; installed architectural structures that can lower energy consumption; applied heat-preserving and energy-saving architecture and used recoverable aluminum films in the process of construction; convened video conferences frequently instead of face-to-face meetings; recycled and processed 820 cubic meters of construction waste.

Social Achievements

• Created a competitive work environment, a sound performance appraisal system and a remuneration and welfare system; constantly improved training and development system; provided free health checkup services and health guidance services each year for employees; provided third-party medical services for employees and their families; provided commercial insurance and supplementary medical insurances for employees; organized employees and landlords to participate in community activities.

Governance Achievements

• Maintained strict compliance with the laws and regulations, paying taxes honestly, fighting corruption, money laundering and bribery; maintained close and transparent communication with investors and the market; had in place a rigorous risk management and internal control system.

Climate Goals & Targets

Environmental Challenges

• Emission reduction
• Improving the efficiency of resource utilization to reduce energy consumption
• Registration of lease agreements in the PRC
• Property ownership certificate of Yu Feng High Street

Mitigation Strategies

• Formulated a series of environment protection measures to reduce emissions and energy consumption, prevent dust and reduce noise; adopted a variety of environment protection measures, for example, using recyclable aluminum molds to replace the traditional wood molds, to reduce waste at source; transported the wastes to a specific centralized disposal site for processing; created an eco-friendly working environment and fostering its employees’ awareness of energy conservation, emission reduction and environmental protection; completed its electronic document management system; encouraged its employees to use car-hailing apps and public transportation; conducted joint research with professional green architecture research institutions to develop and integrate various energy-saving and environmental protection technologies; complied with the national and local environmental protection laws and various types of environmental protection laws and regulations; tried to reduce land excavation and mountain damage through careful planning and design; used aluminum film as well as recyclable templates on the construction site to reduce waste and site pollution; adopted various dust prevention measures; kept monitoring the registration status of lease agreements; kept liaising with the relevant PRC authorities and following up on the application procedure for a new property ownership certificate.

Supply Chain Management

Responsible Procurement

• Inspected suppliers’ contract performance, honesty and legal compliance; incorporated proper appraisal so as to make a comprehensive evaluation; required that all the suppliers must comply with national and local environmental laws and regulations; evaluated suppliers to make sure they complied with all the environmental and social requirements and fulfilled their environmental and social responsibilities.

Climate-Related Risks & Opportunities

Awards & Recognition

• “2017 China Financing Award - Best Brand Value of the Year Award”

Environmental Metrics

ESG Focus Areas

• Product quality control
• Service quality and customer satisfaction
• Safe and civilized construction
• Employee training and development
• Customer information security and privacy protection
• Product responsibility
• Compliance management and integrity construction
• Supply chain management
• Assessment and supervision of suppliers
• Construction of integrity
• Occupational health and safety
• Employee management
• Rights and interest protection and care for employees
• Environmental management
• Green construction
• Community involvement
• Intellectual property protection
• Compliant marketing and promotion
• Community development and communication
• Energy saving, emission reduction and green operation
• Waste disposal and recycling
• Charity and social services

Environmental Achievements

• 44 projects met the requirements of the national green building evaluation standard GB/T 50378-2014 for green building in the design phase and obtained certification
• Li Yuan Project in Nanning, Guangxi, was awarded a three-star green building identification certificate during the operation phase

Social Achievements

• The Group ranked first in the satisfaction survey of residential owners in the real estate industry conducted by Saiwei.
• Implemented the “Diamond” brand concept, focusing on customer satisfaction and quality service.
• Organized community cultural activities and warm-hearted caring activities during holidays and festivals.
• Zero deaths and zero lost days due to work injury from 2017 to 2019.

Governance Achievements

• Established a compliance department under the marketing center to strengthen internal marketing management.
• Implemented rules and implementation manuals, including Administrative Measures on Market, to strengthen the completeness, approval, and compliance of marketing information reporting.
• Implemented the Administrative Measures on Brand and other related rules to ensure the legality and authenticity of information and materials used for advertising, marketing promotion, and publicity.

Climate Goals & Targets

Environmental Challenges

• Global economic slowdown and rising trade protectionism.
• Stringent financing regulation with a tightening financing environment in China's real estate industry.
• Outbreak and epidemic of the coronavirus (COVID-19).
• Registration of lease agreements in the PRC.
• Property ownership certificate of Yu Feng High Street.

Mitigation Strategies

• Implemented locally differentiated investment and marketing strategies and nurtured a number of projects across different regional markets.
• Implemented precautionary and control measures in all projects to fight against COVID-19 and safeguard its employees and business operations.
• Monitored the registration status of lease agreements with the aim of completing their registration as early as practicable.
• Delegated a senior management staff to keep liaising with the relevant PRC authorities and following up on the application procedure for a new property ownership certificate of Wan Guo Plaza.

Supply Chain Management

Supplier Audits: 7,409 suppliers

Responsible Procurement

• Public tender, invitation to tender, quotation, and direct entrusted projects.
• Suppliers sign a letter of commitment to integrity and compliance.
• Suppliers provide insurance for life and property of personnel at the construction site.
• Materials provided by suppliers are subject to national technical regulations and environmental protection requirements.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ESG Reporting Guide issued by the Stock Exchange of Hong Kong Limited

Certifications: ISO 9001, ISO 14001, OHSAS 18001

Awards & Recognition

• Best Growth Award for Hong Kong Listed Company

Environmental Metrics

ESG Focus Areas

• Product quality management
• Service quality and customers’ satisfaction
• Response to public crises
• Rights and care for employees
• Compliance management and building up of integrity
• Safe and civilized construction
• Prohibition of child labor and forced labor
• Occupational health and safety for employees
• Employee training and development
• Customers’ information security and privacy protection
• Energy saving, emission reduction and green operation
• Green construction
• Intellectual property protection
• Compliant marketing and promotion
• Charity and social services
• Assessment and supervision for suppliers
• Supplier chain environment and social risk management
• Community development and communication
• Waste disposal and recycling
• Address to climate change

Environmental Achievements

• 5 projects obtained green building rating certifications
• 55% of projects under construction adopted the aluminum climbing framework system
• 58 projects applied prefabricated construction technology; gross floor area of prefabricated construction technology reached over 3.3 million sq.m., and the prefabricated rate was up to 40%

Social Achievements

• 90.5% customer feedback satisfaction rate
• 2,412 customer requests, 100% handled and returned
• Overall customer satisfaction score reached 92
• 87,143.7 hours of internal training, with 2,654 participants
• Employee turnover rate of 13.7% for male employees and 14.7% for female employees

Governance Achievements

• No legal case regarding corruption brought against the Group or its employees
• Implemented various measures to prevent and control climate change risks
• Strengthened the research and promotion of green buildings and new processes

Climate Goals & Targets

Environmental Challenges

• Severe policy and market environment in the real estate industry
• Overlapping effects of economic downturn, policy regulation, recurrence of epidemic, risk exposure and market competition
• Climate change risks (extreme weather, policy changes, market shifts, technology investment)

Mitigation Strategies

• Optimizing organization and management structure, accelerating market layout and adjustment
• Strengthening development model of “Product + Service”, emphasizing quality of operations and continuously improving profitability
• Strengthening emergency response capabilities to extreme weather
• Improving safety review and daily drainage maintenance for high-slope projects
• Strengthening research and promotion of green buildings and new processes, green office and operation, carbon data management

Supply Chain Management

Supplier Audits: 153 suppliers

Responsible Procurement

• Open tender, invitation for tender, price inquiry and direct engagement
• Qualification review
• Third-party inspection

Climate-Related Risks & Opportunities

Physical Risks

• Extreme heavy rainfall, typhoons, earthquakes, extremely cold and hot weather

Transition Risks

• Carbon reduction requirements, carbon sink requirements, compliance requirements

Reporting Standards

Frameworks Used: ESG Reporting Guide

Sustainable Products & Innovation

• Emperor Chinese and Zen Chinese product lines
• Smart home products

Awards & Recognition

• 64 honorable awards in the design category