Climate Change Data

Environmental Metrics

ESG Focus Areas

• Green Buildings
• Energy Efficiency
• Pollution Prevention and Control
• Sustainable Water and Wastewater Management
• Renewable Energy

Environmental Achievements

• Replaced more than 90% of traditional lights with LED lights in Guangzhou's "W" hotel
• Engaged approved recycling company for waste separation and recycling in Guangzhou's "W" hotel
• Stopped providing disposable goods without request in Guangzhou's "W" hotel
• Substituted wood molds with reusable aluminum alloy molds in the "Apex Jiangmen" project, reducing waste

Climate Goals & Targets

Environmental Challenges

• Occupational health and safety risks
• Community relations issues
• Land use and biodiversity issues
• Emissions, effluents, and waste generated in construction

Mitigation Strategies

• Compliance with national laws and regulations (Construction Law of the People’s Republic of China, Regulation on the Administration of Construction Project Environmental Protection, Environmental Protection Law of the People’s Republic of China)
• Implementation of Quality and Safety Administrative Measures, including regular safety training and site inspections
• Supplier assessments based on company standards and on-site inspections

Supply Chain Management

Responsible Procurement

• Supplier code of conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Green Bond Principles 2018, Green Loan Principles 2021

Third-party Assurance: Sustainalytics

UN Sustainable Development Goals

• SDG 6
• SDG 7
• SDG 11
• SDG 12

The eligible categories are expected to advance these SDGs.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Green Building
• Employee Development
• Supply Chain Management
• Anti-corruption
• Community Involvement

Environmental Achievements

• Established Green Finance Framework and received green certification from Sustainalytics.
• Issued first green USD bond.
• Received "International Certification on Carbon Reduction Guard" from Enterprise Asia.
• 98 certified green building projects and 52 projects in the certification process in Mainland China.
• One project in Hong Kong awarded Green Building Certification (HKGBC Beam Plus) Gold Provisional Rating.

Social Achievements

• Launched KWG New Emerging Force Programme, KWG Motive Programme, and KWG Tripod Programme for talent development.
• Awarded 2021 Forbes China Best Employer of the Year and 2021 Forbes China Most Sustainable Employer of the Year.
• Organized "Love Hat Action" for critically ill children.
• Donated more than RMB1 billion in funds and materials to various charities.

Governance Achievements

• Established an ESG Committee under the Audit Committee.
• Implemented comprehensive anti-corruption policies and training.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to extreme weather events.
• COVID-19 pandemic impacting business operations.

Mitigation Strategies

• Developed alternative sourcing strategies, incorporating climate change factors into procurement.
• Implemented work-from-home arrangements, provided vaccination support, and rent reduction for merchants during the pandemic.

Supply Chain Management

Supplier Audits: Site visits and compliance inspections conducted.

Responsible Procurement

• Prioritising suppliers from internationally renowned brands or top ten in the industry.
• Requiring suppliers to meet national environmental standards.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events causing supply chain disruptions.

Transition Risks

• Regulatory changes

Reporting Standards

Frameworks Used: Appendix 27 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

Certifications: Green Building Certification (HKGBC Beam Plus), International Certification on Carbon Reduction Guard

Third-party Assurance: Sustainalytics (Second-party Opinion)

Awards & Recognition

• 2021 Top 100 PRC Property Enterprises
• 2021 Top 10 PRC Property Companies Listed in Hong Kong
• 2021 APEA Corporate Excellence Award
• 2021 Forbes China Best Employers of the Year
• 2021 Forbes China Sustainable Employers of the Year
• 2021 Times Public Welfare Pioneer Award
• 2021 Public Welfare Innovation Award
• GBE Real Estate Design Awards 2021–2022

Environmental Metrics

ESG Focus Areas

• Climate Change
• Green Building
• Employee Development
• Occupational Health and Safety
• Supply Chain Management
• Anti-corruption
• Community Investment

Environmental Achievements

• 109 certified green building projects and 46 projects undergoing certification in Mainland China
• 6 office building projects selected as the first batch of “Zero Carbon Digital Intelligence Pilot Buildings” in China
• Green Building Certification (HKGBC BEAM Plus) Provisional Gold Rating for The Corniche project in Hong Kong
• Achieved a “Standard Level” rating under the Carbon Champion Programme’s “Carbon Reduction Guard Certification”

Social Achievements

• Launched the “Ideal Green Living Festival” in 7 major cities
• Joined Guangzhou Charity Federation’s “Little Wishes” public welfare project
• Upgraded MSCI ESG rating from “BB” to “BBB”

Governance Achievements

• Established an ESG Committee under the Audit Committee to oversee ESG matters
• Implemented a Supplier Management System and Penalty Management Measures on Suppliers’ Default
• Concluded 3 fraud cases of employees, recovering over RMB3 million in losses

Climate Goals & Targets

Environmental Challenges

• Downward pressure on the macro-economy and unstable market expectations in the real estate industry
• Concerns about ESG performance from investors and customers
• Supply chain disruptions due to extreme weather events
• Climate change risks (physical and transition risks)

Mitigation Strategies

• Incorporating ESG-related sustainable development into strategic considerations
• Analyzing materiality of various issues through independent third-party consultants
• Reviewing implementation progress at board meetings and annual ESG reports
• Reviewing production material procurement practices and incorporating climate change considerations
• Establishing relevant environmental policies to manage supply chain stability and employee safety
• Developing high-efficient policies and strategies to cope with climate changes

Supply Chain Management

Supplier Audits: Number not specified, but mentions regular audits and site visits.

Responsible Procurement

• Prioritizes suppliers from internationally renowned brands or top ten in the industry
• Compliance inspections (safety production license, pollution discharge permit, employee social security payment)
• Site visits to evaluate production scale, product quality, and management standards
• Regular monitoring and annual evaluation of suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events causing supply chain interruptions
• Flooding
• Geological disasters

Transition Risks

• Regulatory changes
• Market fluctuations

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: Appendix 27 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

Certifications: Green Building Certification (HKGBC BEAM Plus), Carbon Reduction Guard International Certification

Sustainable Products & Innovation

• Green buildings

Awards & Recognition

• Numerous awards listed in the report (see Awards Received by KWG for the Year section)

Environmental Metrics

ESG Focus Areas

• Green Building
• Environmental Protection
• Employee Well-being
• Supply Chain Management
• Anti-corruption
• Community Involvement

Environmental Achievements

• 118 certified green building projects and 31 projects undergoing certification in Mainland China as of 2023 (9 more than 2022).
• International Metropolis Plaza in Guangzhou awarded a three-star rating of “Zero Carbon Digital Intelligence Pilot Buildings”.
• The Corniche project in Ap Lei Chau, Hong Kong, awarded a Provisional Gold Rating by the Hong Kong Green Building Council (HKGBC BEAM Plus).

Social Achievements

• Implemented a series of health and safety management measures, including health checkups and mental health consultations for employees.
• Customised and improved employee training plans to enhance professional skills and comprehensive quality.
• Organised various cultural seminars, festivals, and employee appreciation events to foster a harmonious working environment and improve employee well-being.

Governance Achievements

• Established an ESG Committee under the Audit Committee to formulate ESG policies and reporting matters.
• Implemented a top-down ESG management structure.
• Zero fraud cases among employees in 2023.

Climate Goals & Targets

Environmental Challenges

• Climate-related risks: acute physical risks (extreme weather events), chronic physical risks (persistently high temperatures), transition risks (policy and legal changes, technology shifts), market risks (changing consumer preferences), and reputational risks.
• Supply chain challenges: ensuring supplier compliance with environmental and social standards.

Mitigation Strategies

• Actively considering green building factors in project development, design, and construction; strengthening safety training and early warning systems; adjusting sales and leasing strategies; adopting intelligent equipment for energy and resource monitoring; increasing the proportion of green suppliers; enhancing the application of green building technologies; developing appropriate operating procedures to prevent or reduce climate change damage; engaging with stakeholders to convey climate change information and strategy; implementing a Supplier Management System and Penalty Management Measures on Suppliers’ Default; conducting regular supplier audits and inspections.

Supply Chain Management

Supplier Audits: Regular audits and inspections conducted throughout the supply chain.

Responsible Procurement

• Prioritising suppliers from internationally renowned brands or top ten industry suppliers; conducting compliance inspections; conducting site visits; regular monitoring and annual evaluation of suppliers; specifying environmental protection indicators in procurement contracts; conducting unannounced inspections.

Climate-Related Risks & Opportunities

Physical Risks

• Heavy rainfall, floods, heat waves
• Persistently high temperatures

Transition Risks

• Policy and legal changes
• Technology shifts

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Appendix C2 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

Certifications: Carbon Reduction Guard International Certification, Green Finance Post-issuance Stage Certificate (HKQAA), HKGBC BEAM Plus Provisional Gold Rating

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 11 (Sustainable cities and communities)
• Goal 13 (Climate action)

Initiatives contribute to these goals through green building practices, sustainable resource management, and climate change mitigation efforts.

Sustainable Products & Innovation

• Green buildings

Awards & Recognition

• MSCI ESG Ratings (BBB in 2022)
• Numerous awards for commercial office buildings, shopping malls, and hotels.