Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employment and Labor Standards
• Operating Practices
• Community Investment

Environmental Achievements

• Reduced GHG emissions intensity to 0.17 tCO2e per thousand RMB in revenue.
• Implemented energy-saving measures, including controlling air-conditioning and lighting usage.
• Assisted in the treatment of 21,549 barrels of general food waste, 1,578 barrels of grease and oil waste, and 69,083 barrels of other general waste.

Social Achievements

• Maintained a 61% female employee ratio.
• No work-related fatalities or serious injuries.
• Established E-Star Business Academy for employee training and development.
• Held the "520 My Love for All" public service activity.

Governance Achievements

• Established an ESG working taskforce reporting to the Board of Directors.
• Complied with employment-related laws and regulations.
• Implemented strict procurement system and supplier selection procedures.
• No material non-compliance with laws and regulations related to bribery, extortion, fraud, and money laundering.

Climate Goals & Targets

Environmental Challenges

• Limitations in data collection system for waste management.
• Potential risks and opportunities posed by climate change.

Mitigation Strategies

• Plans to improve data collection system in the coming years.
• Actively incorporating climate change into risk management and development considerations.
• Cooperating with government efforts to reduce carbon emissions.

Supply Chain Management

Supplier Audits: Annual appraisal of suppliers.

Responsible Procurement

• Strict and standardized procurement system and supplier selection procedure.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Innovative Commercial Property Management and Operation in China
• Commercial Property Social Impact Achievement in China
• Most Impressive Commercial Property Enterprise in China
• 2020 Top 100 China Commercial Real Estate
• 2020 Top 30 China Commercial Real Estate in Terms of Management
• 2019-2020 Outstanding Commercial Real Estate Operational Service Provider
• Mall China Golden Mall Awards 2020 Excellence Management Company Award
• 2020 Outstanding Commercial Property Operational Service Brand in the Guangdong-Hong Kong-Macau Greater Bay Area
• Top 10 Commercial Property Operational Service Providers in China in Terms of Brand Value
• Ranked 14th among 2020 Top 100 Commercial Property Companies in China

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employment and Labor Standards
• Operating Practices
• Community Investment

Environmental Achievements

• GHG emissions were approximately 91,931.34 tCO2e, which is equivalent to approximately 0.16 tCO2e for every thousand RMB revenue. This represents a decrease of approximately 5.9% compared with approximately 0.17 tCO2e in FY2020.
• Assisted in treatment of a total of approximately 3,271,680 liters of general food waste and approximately 681,900 liters of grease and oil wastes.
• Assisted in treatment of approximately 39,395,720 liters of other general waste collected from shopping centers.
• The Group’s energy consumption per thousand RMB revenue in FY2021 was approximately 0.20 MWh, which decreases approximately 4.8% from approximately 0.21 MWh in FY2020.
• The Group’s water consumption per thousand RMB revenue (projects in operation) in FY2021 was approximately 2.31 m3, representing a decrease of approximately 3.8% as compared with approximately 2.40 m3 in FY2020.

Social Achievements

• 0 case of fatality or serious injury due to work
• The proportion of female employees of the Group is 58%
• Total employee training hours are 5,277 hours.
• Employee turnover rate of the Group was approximately 29%.
• Launched three major shopping rights, namely “Buy Anywhere”, “Compensate Anywhere” and “Mail Anywhere”, to enhance customers’ shopping experience.

Governance Achievements

• Established an ESG working taskforce to incorporate the management of ESG issues within the Group’s overall corporate governance structure.
• No major products and service-related complaints received by the Group and no products sold or shipped subject to recalls for safety and health reasons.
• No serious issues related to the violation of laws and regulations in connection to the prevention of bribery, extortion, fraud and money laundering.

Climate Goals & Targets

Environmental Challenges

• Climate change brings more frequent and severe extreme weather events, such as typhoons, floods, heavy rain, etc., as well as long-term climate impacts, such as rising sea level and global warming.
• Stricter environmental laws and regulations could affect corporate reputation by increasing the risk of claims and lawsuits arising from companies’ failure to comply with legal requirements.
• Failure to meet the growing demand for electric vehicle infrastructure in shopping malls may reduce the ability to attract customers, thereby affecting brand reputation and customer flow in shopping malls.

Mitigation Strategies

• Formulated contingency plan, and will activate response teams and response mechanisms, conduct safety inspections in advance, implement necessary tightening and protection measures, and purchase emergency supplies based on extreme weather warning information.
• Regularly monitors existing and emerging trends, policies and regulations relevant to climate, and is prepared to alert senior management when necessary to avoid cost increments, non-compliance fines or reputational risks due to delayed response.
• Plans to continuously install charging equipment in the parking lot of shopping malls, maintain the charging equipment condition of the operating facilities, so as to enhance its the attractiveness for customers and maintain its competitiveness in the market.

Supply Chain Management

Supplier Audits: 236 qualified suppliers

Responsible Procurement

• Established a strict and standardized procurement system and supplier selection procedure, and imposed requirements on the suppliers in terms of environmental and social risk control.

Climate-Related Risks & Opportunities

Physical Risks

• Floods caused by extreme weather events or rising sea level may cause physical damage to the properties and infrastructure for which that the Group has the operating right

Transition Risks

• Stricter environmental laws and regulations could affect corporate reputation by increasing the risk of claims and lawsuits arising from companies’ failure to comply with legal requirements.
• With the promotion and popularization of electric vehicles, the charging equipment of the projects in operation needs to be refurbished, and the investment and installation cost of the equipment will increase accordingly.

Reporting Standards

Frameworks Used: Environmental, Social and Governance Reporting Guide (ESG Reporting Guide)

Third-party Assurance: Not disclosed

Awards & Recognition

• “Most Popular New Stock Company Among Investors”
• “2021 Top 100 Commercial Property Companies in China” (13th)
• “2021 China Top 10 Commercial Property Operators”
• “2021 Top 10 Commercial Property Companies in China in Terms of Brand Value” (4th)
• “2021 Remarkable Brand of Commercial Property Operation in China”
• “2021 Most Impressive Commercial Property Company in China”
• “2021 Top 100 Best-Performed Commercial Property Companies”
• “2020-2021 Outstanding Light Asset Operator”
• “Most Potential Listed Company”
• “Most Valuable Investment Award”
• COCO Park, “2021 Top 10 Commercial Property Projects in China in Terms of Brand Value”
• Shenzhen Futian Galaxy COCO Park, “Annual Experience Landmark”

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employee Care
• Operating Practices
• Community Investment

Environmental Achievements

• Reduced paper consumption by approximately 15.86% compared to FY2021.
• Reduced water consumption by approximately 10.82% compared to FY2021.
• Installed oil fume purifiers in shopping malls to improve air quality.
• Implemented energy-saving measures, including controlling air-conditioning and lighting usage.

Social Achievements

• No work-related fatalities or serious injuries in FY2022.
• Provided 8,885 hours of employee training in FY2022.
• Implemented various employee benefits and incentives.
• Launched various charity and caring actions in different projects, including cooperation with branded merchants to regularly give out supplies to small communities, providing support to frontline epidemic prevention workers, organizing charity sales and caring for stray animals and pets for adoption, etc.

Governance Achievements

• Established an ESG working taskforce to manage ESG issues.
• Implemented strict procurement system and supplier selection procedure.
• Established a feedback and complaint management system for customer service.
• Provided anti-corruption training to directors and staff.

Climate Goals & Targets

Environmental Challenges

• Climate change related physical risks (extreme weather events) and transition risks (stricter environmental regulations, demand for electric vehicle infrastructure).
• Data limitations in collecting waste data from shopping centers.

Mitigation Strategies

• Formulated contingency plans for extreme weather events.
• Regularly monitors climate-related trends, policies, and regulations.
• Plans to continuously install charging equipment in shopping malls.
• Improving data collection system for waste data.

Supply Chain Management

Supplier Audits: 262 qualified suppliers in FY2022

Responsible Procurement

• Strict procurement system and supplier selection procedure.
• Prioritizes suppliers providing environmentally friendly products and services.

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons, floods, heavy rain, rising sea levels, global warming.

Transition Risks

• Stricter environmental laws and regulations, increased costs for electric vehicle infrastructure.

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 2022 “2022 Top 100 Commercial Property Companies in China” (10th)
• 2022 “2021 China Top 10 Commercial Property Operators” (6th)
• 2022 “2022 Top 10 Commercial Property Companies in China in Terms of Brand Value” (4th)
• 2022 ¨2022 Remarkable Brand of Commercial Property Operation in China©
• 2022 2021-2022 Outstanding Enterprise of the year
• 2022 2022 Top100 of overall strength of retail commercial real estate enterprise of the year
• 2022 2022 Top 20 Real Estate Business Management in China
• 2022 2022 Light Emitter - Digital Intelligence Operational Excellence Impact Company
• 2022 Most Valuable Real Estate and Property Company
• 2022 Best Digital Investor Relations
• 2022 2022 Growth Value
• 2022 COCO Park,“2022 Top 10 Commercial Property Projects in China in Terms of Brand Value”
• 2022 Shenzhen Futian Galaxy COCO Park, China Commercial Property Golden Tripod Award “Annual night economy landmark project“
• 2022 Shenzhen Futian Galaxy COCO Park, 2022 Annual new modified shopping center star show Mall

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employee Care
• Operating Practices
• Community Investment

Environmental Achievements

• Reduced GHG emissions intensity to 0.13 tCO2e per thousand RMB revenue (slightly increased from 0.12 tCO2e in 2022)
• Improved waste management practices, including unified disposal of waste and promotion of waste sorting
• Implemented energy efficiency measures, such as upgrading LED fixtures and installing inverters for exhaust fans
• Reduced paper consumption by approximately 46% compared to 2022

Social Achievements

• Maintained a 0 case of fatality or serious injury due to work.
• 32.74% female employees.
• Total employee training hours of 30,427.5 hours.
• No cases of child labor or forced labor.
• Launched various charity and caring actions, including building sustainable shared gardens and organizing charity sales.

Governance Achievements

• Established a strict and standardized procurement system and supplier selection procedure.
• Implemented anti-corruption training for directors and staff.
• Established a whistleblowing mechanism.
• Complied with all laws and regulations related to the prevention of bribery, extortion, fraud and money laundering.

Climate Goals & Targets

Environmental Challenges

• Increased GHG emissions in 2023 compared to 2022 due to business growth and increased activities.
• Increased waste data in 2023 compared with 2022 due to the expansion and development of the company’s business.
• Transition risks arising from the transition to the low-carbon economy, including stricter environmental laws and regulations and the growing demand for electric vehicle infrastructure.
• Employee turnover rate of approximately 29.47%.

Mitigation Strategies

• Actively adopts power-saving and energy-saving measures to reduce GHG emissions.
• Set a target that all shopping malls in operating projects will host an annual low-carbon related event starting from 2025.
• Regularly monitors existing and emerging trends, policies and regulations relevant to climate.
• Plans to continuously install charging equipment in the parking lot of shopping malls.
• Formulated relevant personnel management policies, including compensation and dismissal, recruitment and promotion, working hours, leaves, equal opportunity, diversity, anti-discrimination, and other perks and benefits.

Supply Chain Management

Supplier Audits: 430 qualified suppliers

Responsible Procurement

• Strict and standardized procurement system and supplier selection procedure.
• Suppliers are required to practice responsibly, comply with all regulations and fulfill international conventions and contacts duties.

Climate-Related Risks & Opportunities

Physical Risks

• Floods caused by extreme weather events or rising sea level

Transition Risks

• Stricter environmental laws and regulations
• Growing demand for electric vehicle infrastructure

Reporting Standards

Frameworks Used: Environmental, Social and Governance Reporting Guide (Appendix C2 of the Rules Governing the Listing of Securities on the Main Board issued by The Stock Exchange of Hong Kong Limited)

Third-party Assurance: Not disclosed

Awards & Recognition

• 2023 “Mall China Golden Mall List of Excellent Commercial Management 2023”
• 2023 “Mall China Golden Mall List of Excellent Marketing 2023”
• 2023 Xiamen Galaxy COCO Park, “Mall China Golden Mall List of Shopping Centers to Be Opened in the Year”
• 2023 E-Star’s Seventh Shopping Festival, “High Quality Creativity Award 2023”