Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Sustainability
• Governance

Environmental Achievements

• 100% green building certification obtained across the entire Fortune REIT portfolio
• Solar panels installed at Fortune City One, Laguna Plaza, and Fortune Metropolis, generating 289,635 kWh of clean power annually and reducing CO2 emissions by 107.16 tonnes.
• Secured a 5-year sustainability-linked loan for HK$1.5 billion from OCBC Bank and sustainability-linked interest rate swap with DBS Bank.

Social Achievements

• Launch of the Fortune Malls App to address changing consumer behavior
• Active asset management and asset enhancement initiatives to revitalize malls

Governance Achievements

• Established a Sustainability Committee to assist the Board in executing sustainability strategy and managing performance.
• Regular review of potential sustainability risks through analysis of risk indicators from industry practices and global risk trends.
• Risk management framework reviewed by the Audit Committee semi-annually.

Climate Goals & Targets

Environmental Challenges

• Tightened building energy codes and increased adoption of renewable energy
• Increased market demand for green properties
• Market demand for green finance
• Changing consumer behavior
• Increased ambition of national decarbonisation strategies
• Adoption of lower-carbon technology
• Heatwaves and increase in average temperatures
• Extreme weather (Tropical cyclones, intense precipitation, flooding, storm surges, sea level rise)
• Water stress

Mitigation Strategies

• Installation of solar panels
• Exploring feasibility of installing more solar panels
• Enhancing energy efficiency of facilities
• Monitoring emissions intensity
• Reducing consumption of natural resources
• Raising environmental awareness among employees
• Securing sustainability-linked loans and interest rate swaps
• Launch of Fortune Malls App and asset enhancement initiatives
• Implementing extreme weather policy
• Insurance policies covering damage from climate-related extreme weather
• Installation of water-saving taps and regular inspections
• Utilization of reclaimed water for landscaping
• Rainwater harvesting
• Installation of smart irrigation
• Smart building management system installation

Supply Chain Management

Responsible Procurement

• Sustainability-anchored procurement and supply chain management processes

Climate-Related Risks & Opportunities

Physical Risks

• Heatwaves
• Extreme weather
• Water stress

Transition Risks

• Tightened building energy codes
• Increased market demand for green properties
• Market demand for green finance
• Changing consumer behavior
• Increased ambition of national decarbonisation strategies
• Adoption of lower-carbon technology

Opportunities

• Increased adoption of renewable energy
• Increased market demand for green properties
• Market demand for green finance
• Changing consumer behavior
• Adoption of lower-carbon technology

Environmental Metrics

ESG Focus Areas

• Our Footprint
• Our Community
• Our People
• Our Space
• Our Conduct

Environmental Achievements

• Achieved 5-star rating for GRESB for two consecutive years
• 100% of Hong Kong portfolio obtained green building certifications from BEAM Plus
• Total GHG emissions decreased by 8% compared with the previous reporting year
• Total energy consumption decreased by 8% compared with the previous year
• Total water consumption decreased by 1% compared with the previous year

Social Achievements

• 22 CSR events held during the year
• Approximately 260 CSR hours clocked by employees
• Over 890 hours of training provided to employees
• Obtained Indoor Air Quality (IAQ) certification for 11 malls

Governance Achievements

• Established a Sustainability Committee to assist the Board in the effective execution of Fortune REIT’s sustainability strategy
• Published Fortune REIT’s first Climate Disclosure Report for the year ending 31 December 2021
• 45% of loans are sustainability-linked

Climate Goals & Targets

Environmental Challenges

• Climate change (physical and transition risks)
• COVID-19 pandemic
• Supply chain disruptions

Mitigation Strategies

• Implemented climate scenario analysis
• Developed alternative sourcing strategies
• Implemented rental concessions for tenants impacted by COVID-19 restrictions
• Introduced cleaning and disinfection robots
• Incorporated green lease clauses in standard Tenancy Agreement
• Secured four sustainability-linked loans (45% of total loans)

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• Contractor Environmental Regulation
• Contractor Safety Regulation

Climate-Related Risks & Opportunities

Physical Risks

• Tropical cyclones
• Increase in average temperatures

Transition Risks

• Increased adoption of renewable energy
• Increased market demand for green and climate resilient properties
• Increased market demand for green finance

Opportunities

• Increased market demand for green and climate resilient properties
• Increased market demand for green finance

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide, GRI Standards, TCFD

Certifications: BEAM Plus

Third-party Assurance: British Standards Institution (BSI)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 5-stars in the 2022 GRESB assessment
• Constituent of the Hang Seng Corporate Sustainability Benchmark Index for six consecutive years
• HKQAA Business Resilience & Community Contribution Awards 2022

Environmental Metrics

ESG Focus Areas

• Our Footprint
• Our Community
• Our People
• Our Space
• Our Conduct

Environmental Achievements

• Exceeded the five-year energy intensity target by 11% against a 2018 baseline
• Exceeded the five-year non-hazardous waste intensity target by 5% against a 2018 baseline
• Exceeded the five-year water reduction target by 24% against a 2018 baseline
• Exceeded the five-year Scope 1 and 2 GHG reduction target by 32% against a 2018 baseline
• Science-based targets approved by SBTi in July 2023
• Installed solar panels at two more Fortune Malls, avoiding 154.43 tonnes of GHG emissions annually
• Maintained 100% green building certifications across its HK portfolio
• 62% of loans are sustainability-linked
• +WOO attained BEAM PLUS Interiors certification for renovation – Gold rating

Social Achievements

• Zero work-related injuries or fatalities for employees of the Manager for the past 3 years and zero lost days
• A record 25 CSR events held with approximately 790 CSR hours clocked
• Offered in-kind venue support for social enterprises and NGOs
• Average 20.5 training hours per permanent employee
• 100% employees trained on sustainability, compliance and cybersecurity topics
• Obtained Indoor Air Quality (IAQ) certification for 11 malls

Governance Achievements

• Zero incidence of non-compliance
• Improved ESG disclosure with 2023 ESG report prepared in accordance with TCFD reporting principles and ISSB Standards
• Contractor Environmental Regulation, Contractor Safety Regulation and the Supplier’s Code of Conduct in place
• Provided ESG training for internal and external stakeholders

Climate Goals & Targets

Environmental Challenges

• Extreme weather events (record high temperatures, intense precipitation, typhoons, and flooding)
• Climate change risks (physical and transition risks)
• Cybersecurity and data privacy threats
• Maintaining customer health and safety

Mitigation Strategies

• Insurance policies for all malls covering damage from climate-related extreme weather
• Reviewed Extreme Weather Policy
• Building management and building optimisation system
• Various mitigation initiatives to reduce GHG emissions (Science-Based Targets, energy efficiency, smart building management, electrification, renewable energy)
• Climate scenario analysis and financial impact assessment
• Mandatory cybersecurity training, simulated phishing tests, multi-factor authentication, digital workshops
• Enhanced accessibility of malls, increased cleaning and disinfection

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• Contractor Environmental Regulation
• Contractor Safety Regulation
• ESG-specific requirements in contractor declaration form

Climate-Related Risks & Opportunities

Physical Risks

• Tropical cyclones
• Increase in average temperatures

Transition Risks

• Increased adoption of renewable energy
• Increased market demand for green and climate-resilient properties
• Market demand for green finance

Opportunities

• Increased market demand for green and climate-resilient properties
• Market demand for green finance

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide, GRI Standards, TCFD recommendations, ISSB Standards

Certifications: BEAM Plus, Indoor Air Quality Certification Scheme

Third-party Assurance: British Standards Institution (BSI)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 5-star rating in the 2023 GRESB assessment (3 consecutive years)
• Constituent of the Hang Seng Corporate Sustainability Benchmark Index (7 consecutive years)
• BEAM PLUS Interiors certification for renovation – Gold rating (+WOO)
• Other awards listed in the report