Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced hazardous waste to 0.04 tons and non-hazardous waste to 1.55 tons in 2020.
• Implemented special energy-efficient designs for exterior facades, floor insulation, door and window glass, and environmental protection and energy-saving technologies on all future design and construction drawings.

Social Achievements

• Maintained an employee turnover rate as low as 5.25% in 2020.
• Achieved 88.4% organizational engagement in 2020, exceeding the 80th percentile of the real estate industry by 14% and the 80th percentile of the service industry by 17.84%.
• Conducted various training programs, including the “Green Lemon Program”, “Yellow Lemon Program”, “Greentown Star Force Program”, and “Sunflower Program”, to enhance employee skills and career development.

Governance Achievements

• Established a sound compliance management system, including the Rules and Regulations for Corporate Operation, Basic Regulations for Compliance Management, and Regulations for Special Compliance Management of Key Areas.
• Implemented a comprehensive intellectual property management system, resulting in 27 important innovations, 59 product patent applications, 46 granted product patents, and 62 new trademark applications by the end of 2020.
• Had no reports of legal cases regarding corrupt practices in 2020.

Climate Goals & Targets

Environmental Challenges

• Meeting raised standards for green energy-efficient buildings and increasingly acute labor shortages on construction sites.
• Maintaining operational compliance in a rapidly changing regulatory environment.

Mitigation Strategies

• Researching and applying new materials and processes, such as integrated insulation structures and materials, for exterior facades.
• Implementing a comprehensive compliance management system and conducting regular internal risk assessments and reporting.

Supply Chain Management

Supplier Audits: Regularly engages third parties to conduct comprehensive project assessments on suppliers.

Responsible Procurement

• Standards for Regional Suppliers' Inventory Management, Standards for Construction Supplier Management, and Implementation Guidelines for the Application of Collective Procurement Results

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: HKEX's ESG Reporting Guide

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• SHL Best Practice in Talent Mobility Award in 2020

Environmental Metrics

ESG Focus Areas

• Quality Management
• R&D and Innovation
• Customer Service Quality
• Supply Chain Management
• Operational Compliance
• Staff Training and Development
• Occupational Health and Safety
• Intellectual Property Protection
• Employment and Labor Standards
• Compensation and Incentive System
• Employee Care
• Climate Change and Response
• Emissions Management
• Energy Saving and Environmental Protection
• Public Welfare

Environmental Achievements

• Reduced greenhouse gas emissions intensity by 6.31%
• Reduced water consumption intensity by 17.46%
• Increased proportion of green buildings

Social Achievements

• Maintained 95% customer satisfaction rate
• 90 points owner satisfaction score, achieving 90 percentile
• No work-related accidents or fatalities
• Implemented various employee care initiatives
• Completed 325 supplier performance evaluations

Governance Achievements

• Established a three-level ESG governance structure
• No corruption lawsuits
• Implemented intellectual property management measures
• Conducted anti-corruption training for all Directors and 360 employees

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to COVID-19
• Downward trend in the real estate industry
• Climate change risks (extreme weather events)

Mitigation Strategies

• Improved the "3+3" business model
• Actively participated in bailout projects
• Implemented various risk management strategies
• Developed alternative sourcing strategies
• Updated EHS Management Policy to address climate change risks

Supply Chain Management

Supplier Audits: 325 supplier performance evaluations

Responsible Procurement

• Supplier Access Requirements and Procedures
• Construction Supplier Management Standards
• Regional Supplier Library Management Standards

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (e.g., rainstorms, floods)

Reporting Standards

Frameworks Used: HKEX's ESG Reporting Guide

Sustainable Products & Innovation

• Green buildings
• Low-cost products

Awards & Recognition

• Tien-yow Jeme Civil Engineering Prize
• China Top 10 Livable Model Buildings
• Qianjiang Cup
• West Lake Cup
• Top Ten Luxury Houses in Asia

Environmental Metrics

ESG Focus Areas

• Emission Management
• Energy Conservation and Environmental Protection
• Social Welfare
• Supply Chain Management
• Employment and Labor Standards
• Compensation and Incentive Systems
• Employee Welfare
• Quality Control
• Research and Development (R&D) and Innovation
• Customer Service
• Human-Centered Design
• Compliance Management
• Employee Training and Development
• Employee Health and Safety
• Promoting Common Prosperity

Environmental Achievements

• Reduced paper use by shifting project management online and keeping electronic design data
• Increased use of new energy vehicles to reduce exhaust gas emissions
• Implemented various water-saving measures to reduce water use and wastewater discharge
• Set up a centralized station to collect hazardous waste and arranged qualified cooperative manufacturers to deal with solid waste
• 88 new construction projects in progress, with 48 projects adopting industrialized technologies, representing a 37% increase from the previous year

Social Achievements

• Delivered a cumulative area of 53 million square meters of government-sponsored construction, improving living environments for nearly 350,000 indigenous households
• Delivered 116 projects with a delivery area of 16.07 million square meters, handing over the keys to nearly 87,000 homeowners
• Launched the "Dolphin Plan," a nationwide free summer swimming program for children of homeowners, benefiting over 170,000 children
• Established the "Tong Xin Yuan" party building brand to promote integrity and self-discipline
• Organized the "Le Ju Cup" First Children's Creative Contest, focusing on woodworking, for rural children
• Implemented "zero tolerance" measures on the employment of child labor and forced labor
• Established a hierarchical training and development system for employees, providing 48 hours of training per employee per year

Governance Achievements

• Established a sustainable development governance structure consisting of a Board of Directors, ESG Committee, and ESG Working Group
• Established the Compliance Management System to define ethical standards and compliance requirements
• Implemented the Employees Integrity and Self-discipline Management System and Anti-corruption Reporting and Reward System
• Organized anti-corruption compliance trainings for directors and employees
• Formulated the "Management Measures for Intellectual Property" to standardize intellectual property management
• Completed the construction of the Company's large-scale procurement system with 14 procurement rules released

Climate Goals & Targets

Environmental Challenges

• Overall pressure on the domestic real estate industry
• Intensified competition in the project management industry
• Potential risks related to climate change or extreme weather
• Homeowners' concerns about leakage and cracking
• Homebuyers' focus on delivery quality
• Homeowners' concerns about product aesthetics and common area amenities

Mitigation Strategies

• Actively contributing to the "Ensure the delivery of properties" policy
• Sharing development experience with the outside world and open sourcing it to the entire network
• Developing an EHS Management Rules to standardize management measures related to emergency preparedness and response
• Introducing the Leak Prevention Workshop and Crack Prevention Workshop with detailed requirements
• Introducing the Delivery Workshop with a "what you see is what you get" approach and four experiential spaces
• Establishing the Facade Workshop, Basement Workshop, and Public Area Workshop to standardize quality details
• Implementing the "Smart Construction" system to empower the entire project construction process

Supply Chain Management

Responsible Procurement

• Supplier Access Standards and Procedures
• Construction Supplier Management Standards
• Supplier Library Management Standards
• Early-stage Project Management Measures for Whole-process Project Management
• Regional Supplier Library Management Standards

Climate-Related Risks & Opportunities

Physical Risks

• Project shutdowns
• Asset damage
• Personnel casualties

Awards & Recognition

• China's "Green Building" certification
• U.S. Green Building "LEED" certification
• The "Qianjiang Cup" Quality Project
• National Quality Engineering awards
• 2023 Zhejiang Landscape Architecture Society - Excellent Landscape Engineering Award
• West Lake Cup Award