Climate Change Data

Environmental Metrics

ESG Focus Areas

• Employment management
• Product and service quality
• Employee development and training
• Effective resource utilization
• Environment and natural resources
• Occupational health and safety
• Green buildings
• Community participation and contribution

Environmental Achievements

• Tower 3 of plot no. L-2 of the Binjiang U Center project obtained the Two-star Green Building Design Label Certificate.
• TODTOWN’s T18 A-grade office building obtained the gold level pre-certification under the LEED programme.
• Binjiang U Center earned WELL pre-certification for its T1 and T2 towers, and LEED pre-certification for lot no. 2, 3 and 4.

Social Achievements

• Provided assistance and care to 52 employees in difficulty.
• Management visited frontline work sites to express care to over 300 staff members and 40 retired employees.
• Rolled out the Group Training Programme for 2019, including the “5th SIIC Senior Management Class”, “8th Young Talent Training Class”, and “the City Forum”.
• Organised the “City Forum” series training activities.
• Held the 2nd Quarterly Work Meeting of the Work Safety Commission and Fire Prevention and Fire Fighting Thematic Training for the Safe Production Month.
• Project companies carried out the safe production month activity.
• Launched several charitable programmes, including donations to Chongming District, sponsoring students, and donating to the Shanghai Charity Foundation.

Governance Achievements

• Complied with all code provisions as set out in the Corporate Governance Code.
• Established four Board committees: Audit Committee, Remuneration Committee, Nomination Committee, and Investment Appraisal Committee.
• Adopted a board diversity policy and a board nomination policy.
• Adopted a dividend policy.
• Maintained sound and effective internal controls system.
• Adopted internal policy for anti-fraud system.

Climate Goals & Targets

Environmental Challenges

• Downward pressure faced by the economy.
• Tightened credit facilities.
• Uncertainty in the China-US trade conflict, hard Brexit, oil prices and uncertain geopolitical risks.

Mitigation Strategies

• Intensified reforms and innovation.
• Refined management.
• Followed the latest market development trend to reform and revitalise its systems.
• Consolidated and optimised its debt structure.
• Focused on exploring and studying the integration of industry and finance while fully revitalising its inventory via a multi-pronged approach.

Supply Chain Management

Supplier Audits: 234 out of 282 suppliers passed the annual assessment

Responsible Procurement

• Qualified Project Supplier Administrative Measures
• SIUD Design Supplier Database Management System

Climate-Related Risks & Opportunities

Reporting Standards

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

Awards & Recognition

• Fourth Place among 2019 China’s Top 10 Property Developers with Sound Operations
• 2019 China’s Top 100 Listed Real Estate Company Rankings by Comprehensive Strength
• 2019 China’s Top 5 Listed Real Estate Company Rankings by Risk Control
• 2019 China’s Top 10 Brand Value in Comprehensive Real Estate Development

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Increased the proportion of green construction projects
• Obtained green construction pre-certification for two projects
• Improved office waste recycling system
• Set up non-renewable and renewable waste recycling bins in properties
• Incorporated solar energy design into projects (e.g., solar water heating system generating 14.93% of hot water with renewable energy in Originally Xi'an project)
• Implemented three-star green building standard in Lingang New Area project

Social Achievements

• Launched online courses on epidemic prevention and mental health for all staff
• Organised the 8th Staff Sports Festival with 475 participants
• Organised staff birthday parties and celebrations
• Provided special incentives and anti-epidemic allowances to volunteers
• Donated RMB200,000 to support military and families
• Participated in caring for autism patients campaign and Tencent “99 Giving Day” donation

Governance Achievements

• Established a robust corporate governance and compliance system
• Integrated ESG elements into corporate strategies and operations
• Refined risk management and internal control systems
• Established an ESG Working Group under the Audit Committee
• Conducted ESG risk assessment and identified 17 material risks
• Formulated policies to standardize supplier engagement and assessment

Climate Goals & Targets

Environmental Challenges

• Volatility of the COVID-19 pandemic and weaker-than-expected property market
• Deep adjustments in the property industry and credit crisis faced by property developers
• Decreases in the sales, gross floor area sold and selling prices of properties
• General decreases in land market in terms of area sold and transaction amount
• Impact of pandemic on rental income

Mitigation Strategies

• Facilitated dual-track development in commodity and affordable housing
• Launched various residential projects for sale
• Adopted a more prudent land acquisition strategy
• Prudent capital management to lower borrowing costs
• Granted rent-free periods to customers to support anti-epidemic policies
• Implemented various measures in response to climate change
• Strengthened internal control over the COVID-19 pandemic
• Formulated policies to standardize project quality management process
• Formulated policies to standardize the selection and assessment of suppliers

Supply Chain Management

Supplier Audits: 2,111 suppliers in the database, all passed annual assessment

Responsible Procurement

• Tender and Procurement Management System
• Qualified Project Supplier Administrative Measures
• SIUD Design Supplier Database Management System
• Selection and Management Requirements for Specific Project Design Suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions and super typhoons

Transition Risks

• Stringent legal and regulatory measures and policies
• Shift in market trends

Reporting Standards

Frameworks Used: ESG Guide (Appendix 27 to the Listing Rules)

Sustainable Products & Innovation

• Green buildings with renewable energy design, water-saving design, and green construction materials

Awards & Recognition

• 2022 Top 100 Property Development Companies by Comprehensive Strength
• 2022 Top 10 Property Development Companies by Responsible Real Estate Projects
• Top 50 in Comprehensive Strength
• Top Five in Risk Control
• Top 50 Property Developers by Brand Value
• Outstanding Property Brand Project in 2022
• Iconic Award in the Iconic Awards 2022

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Social responsibility
• Governance

Environmental Achievements

• Obtained 14 green construction certifications (including LEED and WELL) with a total certified area of 1,640,000 sq.m.
• Reduced greenhouse gas emissions (Scope 1) to 36,584.56 tCO2e in 2023 from 29,740.10 tCO2e in 2022.
• Reduced total greenhouse gas emissions (Scope 2) to 30,331.92 tCO2e in 2023 from 25,424.73 tCO2e in 2022.

Social Achievements

• Launched the “SIUD Dreamer” programme to nurture outstanding high school graduates.
• Organised various staff activities to enhance team cohesion and employee well-being.
• Provided training programs relating to work to employees, with 537 employees from the Group’s headquarters receiving training and a total of 6,003.5 training hours.

Governance Achievements

• Complied with all the code provisions as set out in the Corporate Governance Code.
• Strengthened compliance management and operation marketisation.
• Published the Probity Management System and a Negative List for managerial staff to standardise the internal supervision system.

Climate Goals & Targets

Environmental Challenges

• Adjustment pressure in the property market and subdued consumer confidence.
• Risks related to climate change, including extreme weather conditions and policy changes.
• Maintaining sufficient land bank for development amidst a lukewarm land market.

Mitigation Strategies

• Adapted to market changes by adjusting project development and launch progress.
• Incorporated climate change risk into the ESG risk management framework and formulated mitigation measures.
• Kept an eye on opportunities of enriching our premium land bank based on our development needs and the process of market revival.

Supply Chain Management

Supplier Audits: 2,573 suppliers passed annual assessment

Responsible Procurement

• Formulated Project Supplier Administrative Measures to ensure suppliers follow Company standards on quality, environment, health and safety, employment, and compliance.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions
• Super typhoons

Transition Risks

• Stringent legal and regulatory measures
• Policy changes
• Market trends

Opportunities

• Accelerate low-carbon transformation

Reporting Standards

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

Certifications: LEED Gold Level Certificate, WELL Precertification

Sustainable Products & Innovation

• Green buildings

Awards & Recognition

• 2023 Top 100 China Real Estate Developers in terms of Comprehensive Strength
• 2023 Top 50 China State-owned Real Estate Developers in terms of Comprehensive Strength
• 2023 Top 10 China Real Estate Developers in terms of Social Responsibility
• 2023 Urban Renewal Best Practice Projects (Originally in Xi’an)
• 2023 Typical Projects of China Real Estate Developers (Originally • 江月)
• Top 50 Companies in terms of Comprehensive Strength (May 2023)
• Top Five Companies in terms of Risk Control (May 2023)
• 2023 Top 50 Real Estate Enterprises in terms of Brand Value (September)
• 2023 Top 10 Real Estate Enterprises in terms of Brand Value Growth (September)
• Outstanding Real Estate Branding Project for 2023 (Ocean One)