Climate Change Data

Environmental Metrics

ESG Focus Areas

• Health
• Sustainability

Environmental Achievements

• Ocean Melody (Shanghai) and Grand Canal Milestone (Shenyang) became the first to be registered WELL gold-class in the eastern and northern regions respectively.
• Sino-Ocean Healthy Building System 1.0 implemented in 63 projects across 34 cities.
• Group’s head-quarter refurbishment awarded LEED-EB platinum certification

Social Achievements

• Launched "2019 Sino-Ocean Health Charity Program", establishing the RMB1 million “Sino-Ocean Building Health Fund” to support healthy buildings and environments.
• Held the 3rd “Ocean Marathon” City Relay Race, attracting over 1,000 participants.
• Regular employee satisfaction surveys and adjustments based on results.

Governance Achievements

• Issued a total of USD500 million 3.25-year guaranteed notes and RMB2.9 billion corporate bonds.
• Maintained international investment grade rating.
• Adherence to best practice in information disclosure, transparency and consistency.

Climate Goals & Targets

Environmental Challenges

• Decreased gross profit margin due to more resettlement housing projects delivered.
• Fiercer competition within the industry.
• Financing for real estate remained under high pressure.
• Potential Renminbi exchange rate fluctuations.

Mitigation Strategies

• Focus on expanding principal business and streamlining management process.
• Cautious and rational land acquisition, prioritizing quality of land plots.
• Initiated low cost financing to optimize debt structure.
• Strengthened cash collection capability and disposal of assets.
• Entered into certain forward contracts to hedge against exchange loss.

Supply Chain Management

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: HKEX-ESG, Guidelines on Corporate Social Responsibility Reporting for Chinese Enterprises (CASS-CSR 4.0), Global Reporting Initiative (GRI)

Certifications: WELL Gold, LEED-EB Platinum

UN Sustainable Development Goals

• Not disclosed

Sustainable Products & Innovation

• Healthy Building System 1.0

Awards & Recognition

• 5-star rating from the Chinese Academy of Social Services (4 consecutive years)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Green Building
• Employee Well-being
• Community Investment
• Corporate Governance

Environmental Achievements

• Sino-Ocean Taikoo Li Chengdu (Chengdu) achieved zero carbon emission using 100% renewable electricity power.
• Grand Canal Place (Hangzhou) reduced energy consumption by over 10% through energy-saving reforms.
• Mansion Yue (Suzhou) reduced energy consumption by up to 65% using a solar water heater system.
• Numerous projects applied the “Sponge City” concept and rainwater recycling system to enhance water resource efficiency.

Social Achievements

• Launched "Sino-Ocean Healthy Building System 1.1", applied to over 90 projects, covering over 14.93 million sq.m.
• 11 WELL-certified projects (residential and office), the largest number and area in China.
• Sino-Ocean Charity Foundation donated over RMB200 million in 12 years to various causes, benefiting over 505,000 people.
• Donated RMB10 million for rural poverty alleviation project in Wanyuan County, Sichuan Province.
• Established "Sino-Ocean Young Volunteer Alliance" and "Volunteer Working Department", with 8,082 participants and 92,880 volunteer hours.

Governance Achievements

• Successfully spun off and listed Sino-Ocean Service Holding Limited (06677.HK).
• Implemented an all-round cost control system.
• Consolidated management system for streamlining.
• Maintained international investment grade rating with stable outlook by Moody’s and Fitch.

Climate Goals & Targets

Environmental Challenges

• Hostile market environment due to the COVID-19 pandemic and government regulations ('three red lines').
• Adverse impact of COVID-19 on investment properties (fair value losses).
• Tightening of funding due to 'three red lines' policy.

Mitigation Strategies

• Expanded residential development, initiated online sales, enhanced sales techniques, adjusted supply distribution and tempo.
• Grasped windows to acquire abundant quality land resources (RMB102.8 billion saleable value).
• Tightened budget management, persisted on cash collection, pushed for integrated investment and finance.
• Successfully issued guaranteed notes, private placement notes, and accounts receivables asset-backed facilities.
• Actively disposed of low-efficiency assets, sped up residential development turnover and settlement.

Supply Chain Management

Responsible Procurement

• Prioritizes local suppliers based on project location.
• Updated Sino-Ocean Group Supplier Code of Conduct.
• Established supplier ESG assessment system.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN SDGs

Certifications: WELL

Sustainable Products & Innovation

• Sino-Ocean Healthy Building System 1.1

Awards & Recognition

• Ranked 202 in “Fortune” China 500 (11 consecutive years)
• Rated BBB by MSCI-ESG
• Various ARC, Galaxy, and other awards for annual reports and projects.
• China Healthy Building Quality Model Award
• 2020 China Outstanding Real Estate Product Brand
• 2020 China Real Estate Company Brand Value TOP10
• 2020 China’s Best Real Estate Employer Enterprise
• 2020 China Real Estate Enterprises Organization Effectiveness TOP100

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Products and Services
• Environment
• Employees
• Community and Society

Environmental Achievements

• 100% of new projects met National Green Building Standard in 2023
• Issued USD 1.12 billion in green bonds by the end of 2023 for green building projects and improving existing buildings' climate change adaptability
• Achieved over 40% water saving rate and over 16% energy saving rate in Beijing Ocean Leti Gang project

Social Achievements

• Established the “SO-LIFE Community Support System” in Beijing, providing services for physical and mental well-being of all age groups
• Launched the Employee Assistance Programme (EAP) to provide one-on-one counseling services and mental health resources
• Donated approximately RMB 550 million to support social charity, benefiting over 580,000 people in over 270 cities

Governance Achievements

• Maintained high standards of corporate governance, enhancing operational transparency and protecting shareholder rights
• Established the Sino-Ocean Group Supervisory Committee to enhance employee awareness of integrity and intensify penalties for violations
• Implemented the Sino-Ocean “6+1” quality control system to improve product quality

Climate Goals & Targets

Environmental Challenges

• Severe challenges in the real estate market environment
• Complex international landscape and uncertainties in the domestic market
• Climate change risks including extreme weather events impacting operations and finances

Mitigation Strategies

• Focused on core businesses, enhancing risk resilience and corporate governance
• Developed a carbon neutrality strategy and roadmap, including the Sino-Ocean “2050 Net Zero” Project
• Implemented measures to mitigate climate risks, including adopting advanced energy-saving technologies and promoting clean energy

Supply Chain Management

Supplier Audits: 100% of construction contractors obtained environmental, quality, and occupational health management system certifications

Responsible Procurement

• Code of Conduct for Suppliers
• Green Procurement Policy
• Third-party material testing

Climate-Related Risks & Opportunities

Physical Risks

• Extreme precipitation impacting operations and finances

Transition Risks

• Stricter green building standards and policies

Opportunities

• Green finance, development of green and healthy buildings

Reporting Standards

Frameworks Used: HKEX-ESG, GRI Standards, TCFD, UN SDGs, AA1000AS v3

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO/IEC 27001, ISO/IEC 20000-1, ISO 22301, LEED, WELL, BOMA

Third-party Assurance: TÜV SÜD

UN Sustainable Development Goals

• SDG 3
• SDG 6
• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 11
• SDG 12
• SDG 13
• SDG 17

Sino-Ocean's sustainability initiatives align with these SDGs through various programs and policies

Sustainable Products & Innovation

• Sino-Ocean Healthy Building System
• Prefabricated buildings

Awards & Recognition

• 2023 Fortune China 500
• ESG Model Enterprise
• Carbon Neutral Benchmark Enterprise
• China Corporate Social Responsibility Ranking (No.1 in Real Estate)