Climate Change Data

Environmental Metrics

ESG Focus Areas

• Responsibility Governance
• Green Communion
• Quality Improvement
• People Oriented
• Contribution to Community

Environmental Achievements

• Reduced water loss rate in Shum Yip Intelligent Park from 19.53% in 2018 to 14.38% in 2019, representing a drop of 146,344m3 in water loss.
• Achieved more than 95% multipurpose utilization of recycled construction waste at the Shum Yip Taifu Square demolition project.
• Parkview Bay project achieved a two-star national green building rating, with green and environmentally-friendly building materials accounting for more than 6% of the total weight of building materials used.

Social Achievements

• Reduced rental for commercial tenants by approximately RMB180 million to support businesses during the COVID-19 pandemic.
• Organized 37 integrity-themed lectures and conducted anti-corruption induction training for more than 200 new employees.
• Total training hours for employees was approximately 170,000 hours with a coverage rate of nearly 60%.

Governance Achievements

• Established a joint supervision committee to improve the “six-in-one” general supervising system.
• Formulated the “Implementation Measures for Alert Talks” and “Implementation Measures for Integrity Audit” to strengthen anti-corruption efforts.
• Improved the tendering and bidding process, saving RMB0.23 billion over the budget target cost through standardized tendering.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacted business operations.
• Managing construction waste from large-scale projects.

Mitigation Strategies

• Waived rents for tenants, totaling approximately RMB180 million.
• Developed a discharge reduction and integrated utilization program for construction waste, achieving more than 95% reuse rate.

Supply Chain Management

Responsible Procurement

• Code of Conduct for Suppliers
• Sunshine procurement platform

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Stock Exchange of Hong Kong Limited’s “Environmental, Social and Governance (ESG) Reporting Guide”

Awards & Recognition

• MSCI ESG Ratings BBB
• Top 100 Most Valuable Real Estate Listed Companies Brand in China 2019
• Four prizes in the International ARC Awards 2019
• China Excellence IR Awards 2019-Best Case Award
• Ranking No. 234 in Top 100 Chinese (Global) Listed Companies in 2019

Environmental Metrics

ESG Focus Areas

• Responsible governance
• Customer responsibility
• Environmental responsibility
• Employee responsibility
• Social responsibility

Environmental Achievements

• Annual carbon emissions decreased by 1.5% compared to the previous year (Chaohu Holiday Hotel)
• Total carbon emissions in 2022 to decrease by 2% compared with that in 2021 (Suzhou Marriott Hotel)
• Reduced power consumption by 5% in shopping malls and garages in 2022 (Shum Yip Commercial Management)
• Reduced energy consumption of oil smoke exhaust by 30% in 2022 (Shum Yip Commercial Management)
• Photovoltaic power supply rate to reach 80% for outdoor lighting (Chaohu Holiday Hotel)
• Reduced commercial and office water consumption by 30,000 cubic meters in 2022 (Shum Yip Commercial Management)
• 90% of greening water consumption to come from rivers (Chaohu Holiday Hotel)
• Water intensity in 2022 to decrease by 1% compared with that in 2021 (Suzhou Marriott Hotel)
• Saved 1,500 tonnes of water in 2022 compared to 2021 (Radisson Blu Kashgar)
• Achieved 91% MIC modular integrated assembly rate (Shum Yip Land project)

Social Achievements

• Appointed 2 female executive directors
• Hired 21 disabled employees and 777 minority employees
• All employees covered by headquarters union
• 82,456 employees participated in training with an average of 23.07 training hours per employee
• Carried out 214 safety trainings covering all employees
• Achieved 92.46% customer satisfaction
• No complaints from consumer information and privacy violations
• Total investment in charitable activities/donations reached RMB4,270,320.54
• 5,223 people participated in volunteer services, totaling 19,919.5 hours

Governance Achievements

• Zero criminal cases of corruption, bribery, extortion, fraud and money laundering
• 100% of newly employed staff signed the ‘Incorruptible Practice Commitment’
• Completed pre-assessment and review of 38 major business projects
• Achieved full coverage of transparent transactions and launched 4,334 procurement projects through a municipal transparent procurement platform
• MSCI ESG rating of A

Climate Goals & Targets

Environmental Challenges

• Extreme weather events (typhoons, floods, droughts)
• Rising temperatures
• Sea-level rise
• Water resource scarcity
• Desertification
• Regulatory changes related to green building, energy use, waste management, and carbon pricing
• Market shifts in customer preferences and raw material costs

Mitigation Strategies

• Purchased relevant insurance, arranged construction periods reasonably, and implemented emergency plans for extreme weather events
• Strengthened structural measures in building design, selected durable materials, and considered orientation, ventilation, and thermal insulation
• Improved knowledge of new materials, expanded geological exploration, and implemented water-saving measures
• Tracked policies, communicated with relevant departments, and conducted energy-saving renovations
• Promoted the Group’s low-carbon image, identified customer expectations, and established a green supply chain

Supply Chain Management

Responsible Procurement

• Code of Conduct for Suppliers
• Transparent procurement through Shenzhen transparent procurement platform
• Integrity Contracts

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Rising temperatures
• Sea-level rise
• Water resource scarcity
• Desertification

Transition Risks

• Green building objectives and standards
• Energy structure and energy use
• Waste management standards
• Carbon pricing
• Environmental information disclosure

Reporting Standards

Frameworks Used: Stock Exchange of Hong Kong’s ESG Reporting Guide

Certifications: ISO 9001, ISO 14001, ISO 45001

Awards & Recognition

• 5th China Excellence IR “Best ESG Award”

Environmental Metrics

ESG Focus Areas

• Sustainable development strategy
• Operate with integrity
• Build craftsmanship quality
• Focus on environment sustainability
• Forge ahead with concerted efforts
• Give back to the community

Environmental Achievements

• 6 new projects with green building certifications, covering an area of approximately 562,600 square meters
• 100% solid waste recycle
• 100% noise control
• 100% up-to-standard discharge of acid and alkali wastewater from construction upon retreatment
• 100% elimination of radioactive leaks
• 100% timely restoration and rehabilitation of ecological environment damaged during the construction process
• 100% wastewater from construction site living area being discharged meeting grade II standards

Social Achievements

• Attracted nearly 30 industry elites to join
• In 2022, trainings concerning party building, talent development and business-related subjects were provided, covering 100% employees
• In 2022, the Group organized three compliance training sessions on a group basis
• More than 3,000 copies of the “Integrity and Self-Discipline Commitment ” and “Compliance Commitment ” were signed by the party leaders and cadres within the system, and 100% employees signed the Incorruptible Practice Commitment
• The non-profit summer camp, “Happy Kids Alliance”, has served over 2,000 children in the community
• A total of 1,247 employees participated in volunteer services, providing 8,532 hours of service.

Governance Achievements

• Awarded the “Best ESG Award” and “Best IR Program” on 22 December 2022.
• Completed the revision and preparation of 93 systems, including 59 prepared ones and 35 revised ones
• 100% of new employees, employees in key fields and positions, and discipline inspection cadres completed their integrity trainings.

Climate Goals & Targets

Environmental Challenges

• Complicated industry environment and severe international situation
• Climate change related physical risks (extreme weather, flooding, environmental change) and transition risks (policy and regulation impacts, technology risks, market risks, other stakeholder impacts)

Mitigation Strategies

• Improved sustainable development control framework
• Implemented the “Double Carbon” initiative
• Established a comprehensive risk management system
• Developed response and mitigation measures for climate change risks (employee safety measures, architectural design improvements, emergency plans, material selection, geological exploration, building maintenance, water-saving measures, green promotion, green building practices, policy tracking, energy-saving renovation, technology improvements, image promotions, operation management, customer expectation management, compliance disclosure, green supply chain development, risk control)

Supply Chain Management

Responsible Procurement

• Code of Conduct for Suppliers of Shenzhen Investment
• Transparent procurement practices
• Third-party audits of bidders

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Typhoon
• Extreme precipitation
• Flood
• Extreme cold
• Drought
• Rising temperature
• Sea-level rise
• Desertification
• Water resource scarcity and supply instability

Transition Risks

• Impact of policies and regulations
• Technology risk
• Market risk
• Other stakeholders

Reporting Standards

Frameworks Used: Stock Exchange of Hong Kong Limited’s “Environmental, Social and Governance (ESG) Reporting Guide”

Certifications: ISO 14001, ISO 45001

Awards & Recognition

• Best ESG Award
• Best IR Program
• Most Valuable Real Estate and Property Company
• Greater Bay Area Outstanding Business Award
• 2022 Human Resources Management Excellence Award – Outstanding Employer
• Golden Mall award
• Commercial Management Company Excellence Award
• Marketing Planning Excellence Award
• Community Commercial Experience Model Project of the Year
• Forbes Travel Guide Five-Star Award

Environmental Metrics

ESG Focus Areas

• Governance Responsibility, Sustainable Management
• Customer Responsibility, Quality Forever
• Environmental Responsibility, Green Forever
• Employee Responsibility, Talents Forever
• Social Responsibility, Warming Society Forever

Environmental Achievements

• Completed 48 green building certification projects with a total certified area of approximately 6,293,900 square meters
• Added 2 new green building certification projects, covering an area of approximately 176,200 square meters
• 100% recycling of contaminated solid waste
• 100% strict control of noise release
• Secondary treatment of construction acid and alkali wastewater meets 100% of the discharge standards.
• 100% radioactivity leakage elimination
• 100% timely remediation and restoration of ecological environment damaged during the construction process
• 100% of the wastewater in the construction and living area reached level 2 discharge

Social Achievements

• 73 new employees signed “Incorruptible Practice Commitment” in the Workplace, with 100% of all employees signing IPC.
• Completed the selection of a total of 90 managements for the leadership teams of seven subsidiaries and vacant positions at the middle level of the headquarters
• Selected managements participated in more than 50 training programs organized by the SASAC of the State Council and the Municipal SASACs
• Provided allowances to 540 employees and their relatives in cases of childbirth, new marriage, hospitalization and death, with an expenditure of RMB 680,000
• Promoted 35 enterprise trade unions to purchase Mutual Aid Protection Plans for 3,988 employees with an amount of nearly RMB700,000
• Consumption-based support in 2023 amounted to RMB 5.72 million
• Donated RMB 3 million to “630 Poverty Alleviation” in 2023
• Investment in public welfare activities amounted to RMB873,000 in 2023

Governance Achievements

• Passed ISO 37301 compliance management system certification
• Refined the Group’s compliance risk assessment system
• Formulated a three-year action plan for compliance planning
• Strengthened integrity building
• Awarded a 90-point A rating in the evaluation of the Board of Directors by the Shenzhen State-owned Assets Supervision and Administration Commission (SASAC).

Climate Goals & Targets

Environmental Challenges

• Challenging environment of the real estate industry in 2023
• Climate change risks (extreme weather, environmental change, policy impacts, technology risks, market risks, stakeholder concerns)

Mitigation Strategies

• Improved and consolidated sustainable development strategy
• Strengthened climate resilience and risk management
• Implemented risk responses and mitigation measures for various climate risks (e.g., employee safety measures, architectural design improvements, emergency plans, material selection, water-saving measures, green promotion, energy-saving renovations, image promotions, supply chain improvements, compliance disclosure)
• Improved compliance management system
• Strengthened risk management structure and processes

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Code of Conduct of Suppliers
• Measures for the Administration of Tendering and Procurement
• Transparent procurement platform
• Third-party assessment of bidders

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Environmental change

Transition Risks

• Impact of policies and regulations
• Technology risks
• Market risks

Opportunities

• Green building development
• Energy-saving renovations
• Development of energy-efficient products

Reporting Standards

Frameworks Used: Listing Rules of the Stock Exchange of Hong Kong Limited, ESG Reporting Guide

Certifications: ISO 37301, ISO 9001, ISO 45001, ISO 50001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Green buildings
• Energy-efficient products
• Modular indoor planting devices (Nongke Company)

Awards & Recognition

• MSCI-ESG A rating
• Various quality awards (52 total)
• Domestic and foreign design awards (20 total)
• Shenzhen Construction Project Excellent Site Award
• MUSE Design Awards
• China Home Consumer Reputation Listed Brands
• Shenzhen Youth Civilization Title
• Gold Award for Landscape Architecture
• 2023 China Urban Redevelopment Outstanding Cases Top Ten Value Innovation Award
• Shenzhen Leading Agricultural Enterprises Second Prize
• Various awards for Shum Yip Operations and Commercial Management Company