Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social Responsibility
• Governance

Environmental Achievements

• Reduced electricity consumption by 7.69 million kWh from 2015 to 2019, indirectly reducing carbon emissions by approximately 50,000 tons.
• Reduced electricity consumption by 3,700,359.50 kWh in 2019, indirectly decreasing carbon emissions by over 29,900 tons.
• The Cheng Shi Zhi Xing and Shu Guang Zhi Cheng communities received the honorable title of 2018 Demonstrative Community for Garbage Classification in Zhejiang Province.
• The Wan Jia Xing Cheng Phase 2 community was awarded the honorable title of Demonstrative Garbage Classification Community in Xiacheng district, Hangzhou in 2019.
• The One saved approximately 6,000 tonnes of water in 2019 and was awarded the title of “Water-saving Residential Quarter”.

Social Achievements

• Successfully recruited and cultivated more talents, promoting social stability.
• Implemented human resources strategy; improved internal promotion mechanism; formulated an open, fair and transparent recruitment process; set up a more attractive compensation and welfare system.
• Carried out a variety of cultural and recreational activities for residents within the community.
• Participated in social welfare initiatives and contributed to society through practical actions.
• Provided comprehensive prevention and control measures during the COVID-19 outbreak, receiving wide recognition.

Governance Achievements

• Established a top-down ESG governance structure and an ESG report working commission.
• Established an internal discipline supervision and inspection team to combat corruption.
• Implemented a zero-tolerance policy for misconduct in commercial activities.

Climate Goals & Targets

Environmental Challenges

• Reducing carbon emissions, mainly from outsourced electricity.
• Maintaining high employee retention rates, particularly for junior managers and ordinary employees.

Mitigation Strategies

• Implementing energy conservation measures, including intelligent lighting upgrades and a green office management system.
• Providing attractive compensation and welfare systems, including lunch allowances, accommodation, festival gifts, physical examinations, and targeted financial relief.

Supply Chain Management

Supplier Audits: Annual evaluations

Responsible Procurement

• Supplier Investigation/Evaluation Form, including assessment of quality, environment, and occupational health system.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

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

Certifications: GB/T24001-2016 and ISO14001:2015 (environmental management system), GB/T28001-2011 idt. OHSAS 18001:2007 (occupational health and safety management system), ISO9001:2015 (Quality Management System)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• China Property Service Professional Operation Brand Value Top 20 (September 2019)
• 2019 Five Star Property Management Projects in China (Jing Se Jiang Nan and Bin Jiang Hua Jia Ci communities)
• 2019 China Property Management Top 100 List
• “Power of Community” Poverty Relief Through Consumption Contribution award (Hangzhou Binjiang Property Management Company)
• “Poverty Relief Through Consumption Role Model Community” (Kun Lun community)

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Employee training and development
• Waste management
• Corporate governance
• Energy conservation and emission reduction

Environmental Achievements

• Implemented green office system to reduce energy consumption and paper use
• Obtained GB/T24001-2016 and ISO14001:2015 certifications for environmental management system
• Reduced carbon emissions through various measures, including controlling company-financed vehicles and promoting paperless office
• Implemented measures to promote garbage classification at source
• Improved water conservation practices using robots for water feature decontamination

Social Achievements

• Increased employment opportunities due to growth in the number of projects under management (from 99 to 133)
• Implemented standardized recruitment process ensuring fair and equal opportunities
• Provided various employee benefits, including lunch allowance, accommodation, festival gifts, physical examinations, and targeted financial relief
• Maintained a low employee turnover rate (below industry average)
• Implemented occupational health and safety management system certified by GB/T45001–2020 idt ISO45001: 2018 and GB/T28001-2011 idt. OHSAS 18001: 2007
• Provided systematic and extensive training plans and promotion and rotation programs for employees
• Organized various community activities, including holiday events and handyman services
• Participated in poverty alleviation programs
• Established an internal discipline supervision and inspection team to combat corruption

Governance Achievements

• Established a top-down ESG governance structure with Board oversight
• Established an ESG report working commission to implement ESG strategies
• Adopted the Corporate Governance Code and Corporate Governance Report contained in Appendix 14 to the Listing Rules (the “CG Code”) as its own corporate governance code
• Established internal audit function to evaluate the effectiveness of risk management and internal control system

Climate Goals & Targets

Environmental Challenges

• Geographical concentration risk (operations concentrated in Yangtze River Delta, particularly Hangzhou)
• New contract risk (reliance on tender processes and Binjiang Group for contracts)
• Future acquisition risk (inherent risks and uncertainties associated with acquisitions)
• Epidemic risk (potential slowdown in property development, higher costs, and staff shortages)
• Potential for corruption

Mitigation Strategies

• Actively seeking business opportunities outside the Yangtze River Delta
• Enhancing quality service capabilities and actively seeking business opportunities from independent third parties
• Cautious identification of acquisition targets
• Introducing various preventive measures to deal with major public crises
• Establishing a comprehensive and detailed anti-corruption system with a zero-tolerance policy

Supply Chain Management

Supplier Audits: Annual evaluations of suppliers; 82 suppliers included in centralized procurement scope in 2020

Responsible Procurement

• Multi-dimensioned assessment system for suppliers, including quality, environment, and occupational health system authentication

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons, rainstorms, high temperatures, and other extreme weather conditions
• Global warming increasing operating costs

Transition Risks

• Political and legal risks, technical risks, market risks, reputational risks

Opportunities

• Resource efficiency, energy sources, products and services, markets and resilience

Reporting Standards

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

Certifications: GB/T24001-2016 and ISO14001:2015 (environmental management system), GB/T45001–2020 idt ISO45001: 2018 and GB/T28001-2011 idt. OHSAS 18001: 2007 (occupational health and safety management system), ISO9001:2015 (Quality Management System)

Third-party Assurance: KPMG

Awards & Recognition

• 2020 Leading Brand of China Property Service Companies in terms of Service Quality
• Anti-epidemic Pioneer Property Project (for Golden Jiangnan, Jiangnan Star, and Yuesheng International Community)
• Outstanding Property for Effective Epidemic Prevention (for Jiangnan Star, Wanjia Xingcheng, Wenjing Yuan, Qiandaohu Dongfang Haian, and Daijiang Star)
• Outstanding Unit for Anti-epidemic (for Pinghu Wanjia Huacheng)
• Outstanding Property Service Provider for Anti-epidemic in Xihu (for Hangzhou Jinse Lanting)
• Outstanding Unit for Epidemic Prevention and Control (for Zhejiang Publishing Group Building)
• 2020 China Excellent Listed Property Management Company by Investment Value
• Top Ten Property Management Service Companies in Hangzhou