Climate Change Data

Environmental Metrics

ESG Focus Areas

• Green building
• Product quality and safety
• Combating corruption
• Employee safety and health
• After-sale product management and services
• Supply chain management
• Compliance in employment and protection of employee rights and interests
• Customer information and privacy protection
• Protection of intellectual property rights
• R&D and innovation
• Energy consumption
• Employee development and training
• Management and resource conservation
• Contribution to national and local economy
• Charity and volunteer service

Environmental Achievements

• Gubei SOHO and Leeza SOHO obtained LEED Gold certification.
• Cumulative energy saving reached 82 million degrees, achieving an energy saving rate of 22.3%.
• Total greenhouse gas emissions (Categories I and II): 51,039.51 tons
• Direct emissions (Category I): 5,806.32 tons
• Indirect emissions (Category II): 45,233.19 tons
• Greenhouse gas emissions per sq.m. (floor area) per year: 0.078 tons/sq.m.

Social Achievements

• Launched an online public rental platform.
• SOHO China’s energy management platform achieved outstanding results with a completion rate of 99.8% and 277,000 tasks completed.
• 100% signing rate of labor contracts with employees (1,948 employees total).
• No death accidents caused by work-related reasons.
• OHSAS 18001 certification received.
• Organized 19 types of special training events with 4,097 attendances.

Governance Achievements

• Established a standardized, fair and transparent purchase and tendering system.
• 31 suppliers were blacklisted for violating SOHO China’s Measures for the Management of Suppliers on the Purchase Platform.
• Implemented an ERP supplier database system and a business intelligence (BI) system for supply chain management.
• Upgraded and improved the supplier certification system and electronic contract signing system.
• Received no more than 10 complaints, none related to corruption or bribery.

Climate Goals & Targets

Environmental Challenges

• Decreased occupancy rates (to approximately 90% at the end of 2019) due to slowing economic growth and impact on the office leasing market.

Mitigation Strategies

• Improved platform management to improve efficiency and services.
• Deployment of 5G networks in all SOHO China’s projects in Beijing.
• Building a new SOHO China 5G lab at Leeza SOHO.

Supply Chain Management

Supplier Audits: 31 suppliers blacklisted

Responsible Procurement

• SOHO China Measures on the Management of Procurement and Tendering
• Measures for the Management of Suppliers on the Purchase Platform
• Management Requirements for Blacklisted Suppliers
• Tiered Management Measures for Contractors and Suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Stock Exchange’s Environmental, Social and Governance Reporting Guide

Sustainable Products & Innovation

• LEED Gold certified buildings (Gubei SOHO, Leeza SOHO)

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Social responsibility
• Corporate governance

Environmental Achievements

• 24 projects achieved annual electricity saving of 116 million kWh, equivalent to a reduction of 96 thousand tonnes in carbon emissions (28.9% energy saving rate compared to GB/T 51161–2016).
• Four SOHO China projects obtained the “Two-star Green Building Label Certificate”.

Social Achievements

• RMB10 million donated to the Red Cross Society of China Zhengzhou Branch to support post-flood reconstruction.
• RMB10 million donated to the Red Cross Society of China Tianshui Branch to support pandemic control.
• Continued funding of Tianshui Yangzheng Kindergarten and Panjizhai School.

Governance Achievements

• Established the “ESG Committee” under the Board of Directors.

Climate Goals & Targets

Environmental Challenges

• Ongoing small-scale outbreaks of COVID-19 and the “Double Reduction” policy negatively impacted the office and commercial rental market.
• Increased market supply in Beijing and Shanghai in 2022 will lead to competition and challenges in the leasing business.

Mitigation Strategies

• Adopted a more flexible leasing policy, including focusing on rent expansion and lease renewal with existing tenants and attracting high-quality new tenants from healthcare and high-tech sectors.
• Focus on asset management and property management to create added value for tenants and maintain market recognition.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Zero-carbon library

Awards & Recognition

• 2020–2021 National Quality Project Award (Gubei SOHO)

Environmental Metrics

ESG Focus Areas

• Energy saving
• Community investment
• Green building certifications

Environmental Achievements

• Achieved 140 million kWh total annual energy savings; reduced greenhouse gas emission by 111,684 tonnes; 90% of asset value of certified construction in total asset value; 4 LEED certifications; 9 green buildings with operation label; 8 buildings certificated with WELL HSR

Social Achievements

• Donated RMB 30 million to establish Tianshui Yang Zheng Kindergarten; donated RMB 4 million for kindergarten operation and maintenance; donated RMB 121,660 and 6,083 books to rural children; invested RMB 4 million to build Bai Cao Garden for Yang Zheng Kindergarten; invested RMB 20 million to build Yangzheng Library; donated RMB 320,000 to Tianshui Panjizhai School for student uniforms; SOHO China Foundation invested RMB 30.06 million in public welfare causes in 2022.

Governance Achievements

• Recognized by MSCI ESG rating (AA) and GRESB (four-star rating)

Climate Goals & Targets

Environmental Challenges

• Occupancy rate fell to 76% at the end of 2022 due to the COVID-19 pandemic and market influence

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: MSCI ESG, GRESB

Certifications: LEED, Green building operation label, WELL HSR

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Carbon emissions reduction
• Public welfare activities
• Sustainable building design

Environmental Achievements

• Completed and put into use the "Yangzheng Library", one of the first real zero-carbon buildings in China.
• Achieved a five-star rating from Global Real Estate Sustainability Benchmark (GRESB)

Social Achievements

• Actively participated in charity and public welfare activities

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Weak macroeconomic environment impacting office and retail property leasing markets, leading to reduced rents and occupancy rates.
• Late payment of land appreciation tax (LAT) triggered cross-defaults of certain bank borrowings.
• Material uncertainty exists regarding the Group’s ability to continue as a going concern due to exceeding current liabilities over current assets and outstanding LAT.

Mitigation Strategies

• Implemented cost control measures, including eliminating entertainment expenses and reducing employee salaries.
• Proactive communication with the local tax authority to agree on a detailed settlement plan for outstanding LAT, including the sale of commercial properties.
• Active discussions with lenders to revise repayment installment amounts for existing borrowings.
• Proactive measures to improve operating cash flow by controlling costs and expenses and containing capital expenditure.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Five-star rating from GRESB