Climate Change Data

Environmental Metrics

ESG Focus Areas

• Customer complaints and service quality
• Employee occupational health and safety
• Anti-corruption
• Protection of employees’ rights and interests
• Service quality management
• Employee development and training
• Environmental protection
• Green and low carbon operation
• Community investment

Environmental Achievements

• Successfully completed annual energy-saving targets for certified areas/projects.
• Energy-saving transformation of central air conditioning system at Excellence Century Centre, saving 12,716 kWh of electricity daily (22.76% cost saving).
• Collected 2.086 tonnes of waste batteries and 40.85 tonnes of old books and paper for recycling.
• Renovated toilets to use water-saving toilets.

Social Achievements

• Revised and improved human resources measures, including Operational Guidelines on Labour Contracts and Management Measures for Induction, Employment and Dismissal.
• Recruited 93 student interns, retaining 63.
• Implemented Leader Training Scheme for management personnel.
• Provided training on Xiaohongshu operation manual and the Civil Code to 160 personnel.
• Conducted project manager improvement class for 78 supervisors/managers.
• No violations in providing a safe working environment to avoid occupational hazards.
• No labour disputes, child labour, or forced labour.

Governance Achievements

• Established a customer service policy and mechanism with a three-tier management and control mechanism.
• Implemented the 1234 Quality Control Policy.
• Formulated Guidelines Governing Data Security on the Zhuopin Intelligent Platform.
• Established an effective risk management mechanism, including Audit Management Measures, Whistleblowing Management Measures, and Reward and Punishment Management Measures.
• No cases of corruption, bribery, extortion, fraud, or money laundering.

Climate Goals & Targets

Environmental Challenges

• Rapid business development requiring recruitment of more professionals and management talents.
• Potential impact of climate change on business operations (physical and transition risks).

Mitigation Strategies

• Upgraded recruitment plan and developed a market-based pay survey plan.
• Established emergency plans for various extreme weather events and regularly conduct drills.
• Actively identify transition risks, keep abreast of policy changes, and identify risks and opportunities.

Supply Chain Management

Supplier Audits: 1,582 suppliers in China; regular assessment of contractual performance; spot checks and assessments on social responsibility and environmental protection.

Responsible Procurement

• Environment – Occupational Health and Safety Protection Agreement
• Sunshine Cooperation Agreement

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Changes in relevant policies

Reporting Standards

Frameworks Used: Environmental, Social and Governance Reporting Guide (Appendix 27 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited)

Certifications: ISO9001, ISO14001, ISO45001, ISO50001

Awards & Recognition

• 2019 Best Facility Management Technology Award for Qianhai Project 1 – E+ Intelligent Platform Application Project IFMA China FM Awards
• Charity Enterprise Award
• Most Awesome Support Award

Environmental Metrics

ESG Focus Areas

• Service quality management
• Customer complaint management
• Employee occupational health and safety
• Employee development and training
• Smart community
• Customer privacy management
• Suppliers management
• Corporate culture
• Waste management
• Use of energy
• Wastewater management
• Air emissions
• Water resources management
• Social public welfare activities
• Greenhouse gas emissions
• Addressing climate change

Environmental Achievements

• Achieved a daily saving of 14,706 kWh of electricity through energy-saving transformation of the central air conditioning system at Excellence Century Centre, saving 12.76% electricity cost.
• Successfully completed annual responsibility targets for energy saving in certified areas and projects.

Social Achievements

• Launched a 6U deep-care product system for smart community, improving communication and service between community management and property owners.
• Achieved 100% complaint closure rate and effective complaint return visit.
• Overall customer satisfaction rate of 97%.

Governance Achievements

• Established the Strategy and ESG Committee on April 19, 2022, responsible for supervising, promoting, and implementing the Company’s strategic and ESG matters.
• Implemented a three-tier management and control mechanism for customer service, covering headquarters, regions, and projects.

Climate Goals & Targets

Environmental Challenges

• Rapid business development requiring more professionals and management talents.
• Climate-related risks including transition risks (policy and regulatory risks, technical risks, market risks, reputational risks) and physical risks (acute and chronic).
• Environmental and climate risks leading to operational and financial risks (increased electricity costs, increased operating costs due to the pandemic, reduced customer business).

Mitigation Strategies

• Upgraded recruitment plan and developed a market-based pay survey plan to increase recruitment number and quality.
• Actively responded to national strategy, selected pilot projects to implement the dual-carbon strategy, and implemented innovative measures (e.g., promoting rooftop photovoltaics, energy-saving and reuse through elevator energy feedback).
• Established emergency plans for extreme weather (typhoon and rain, heavy rain and cold wave, blizzard, snow removal, high-temperature weather) and conducted regular drills.
• Implemented energy-saving measures such as “table clearing and five shutdowns”, and planned to apply energy-saving technologies (e.g., LED lights, dynamic induction control of energy-consuming equipment).

Supply Chain Management

Supplier Audits: 1924 suppliers in China, on-site inspections and assessments conducted.

Responsible Procurement

• Stringent controls over supplier selection, clear specifications for supplier selection, procurement process, and certification of purchased products and services.
• Sunshine Cooperation Agreement signed with each supplier.
• Regular assessment of supplier contractual performance.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather (typhoons, floods), cold weather (water pipe bursts)

Transition Risks

• Increased operating costs due to energy price increases, energy use caps, paid greenhouse gas emissions, or improved environmental regulatory requirements.

Opportunities

• Increased role in community and grassroots epidemic prevention and control
• Cost savings through energy saving and consumption reduction
• New business opportunities by promoting clean energy management (solar, wind power).

Reporting Standards

Frameworks Used: Environmental, Social and Governance Reporting Guide (Appendix 27 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited)

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 50001

Awards & Recognition

• TOP100 Property Management Companies in China (13 consecutive years)
• 2021 China Office Property Management Exceptional Companies
• 2021 China’s Excellent Property Management Companies with Diversified Operations
• 2021 “Golden Palace TOP 10 Most Popular Property and Facility Management Company Awards”, and many more.

Environmental Metrics

ESG Focus Areas

• Customer service quality management
• Employee occupational health and safety
• Employee development and training
• Suppliers management
• Social public welfare activities

Environmental Achievements

• Reduced greenhouse gas emissions from 60,017.62 tonnes of carbon dioxide equivalent in 2021 to 69,805.38 tonnes in 2022 (increase attributed to expansion)
• Reduced hazardous waste from 4.44 tonnes in 2021 to 2.35 tonnes in 2022
• Reduced water consumption from 5,730,783.00 m³ in 2021 to 3,605,747.63 m³ in 2022
• Collected 43.7 tonnes of waste batteries, 245.2 tonnes of used books and paper, and 18.2 tonnes of used clothes for recycling.

Social Achievements

• Launched four series of customer IP activities (Enterprise Alliance, Excellent Club, Self-pleasure Party, Light, Shadow, Sound and Color) covering 19 office buildings and 100,000 customers.
• Conducted 502 fire drills with 84,695 participants.
• Launched the material procurement mall system.
• Conducted more than 200 anti-corruption training sessions for employees (13,000+ participants, 1,000+ training hours).
• Launched 56 projects to assist employees, granting RMB288,228.354 to 154 recipients through the Love Foundation.
• Provided around 790 dormitories for employees.

Governance Achievements

• Established the Strategy and ESG Committee on April 19, 2022.
• Updated the Reward and Punishment Management Regulations, increasing the reward for reporting corruption from 5-10% to 10-50%.
• Formulated an employee handbook and ten red lines on employee code of conducts.
• Effectively reported and handled 3 cases of corruption-related violations of laws and regulations.

Climate Goals & Targets

Environmental Challenges

• Transition risks associated with a low-carbon economy (policy and regulatory changes increasing operating costs)
• Physical risks associated with the impacts of climate change (extreme weather affecting service provision, water pipe bursts due to temperature changes).

Mitigation Strategies

• Actively responding to national strategy and implementing innovative measures to prepare for climate change risks.
• Improving risk response processes and systems, conducting safety awareness promotion activities.

Supply Chain Management

Supplier Audits: 2,112 certified domestic suppliers

Responsible Procurement

• Stringent controls over supplier selection, clear selection criteria, procurement process, and certification of purchased products and services.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme rainfall, blizzard, cold wave affecting service provision
• Water pipe bursts due to temperature changes

Transition Risks

• Policy and regulatory changes increasing operating costs (energy prices, energy use caps, paid greenhouse gas emissions)

Reporting Standards

Frameworks Used: Hong Kong Stock Exchange's Environmental, Social and Governance Reporting Guide

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 50001

Awards & Recognition

• Numerous awards listed in the Appendix