Climate Change Data

Environmental Metrics

ESG Focus Areas

• Greenhouse gas emissions
• Energy and water consumption
• Employment and Labour Practices
• Operating Practices
• Business ethics
• Supply chain management
• Service quality management

Environmental Achievements

• Reduced monthly average electricity consumption from 0.15RMB per square meter to 0.12RMB per square meter
• Reduced monthly average water consumption from 0.020RMB per square meter to 0.013RMB per square meter
• Replaced existing single-illuminance LED lamps and regular light bulbs with radar-sensing dual-illuminance LED lamps

Social Achievements

• No cases of child labour or forced labour identified
• Organised training on occupational health and safety for employees
• Provided different types of training for employees, including property management, service requirements, market situation, business communication, customer demands, and risk management
• Conducted more than 3,000 community activities across the PRC, with nearly 200,000 participants

Governance Achievements

• No reported or prosecuted cases of bribery, extortion, fraud, or money laundering
• Implemented internal policies to prevent corruption, including employee conduct assessment management, management of gifts received on business, and declaration of conflict of interests
• Organised various anti-corruption activities and trainings for its employees

Climate Goals & Targets

Environmental Challenges

• Potential indirect environmental impacts from operations
• Climate-related risks such as increasingly severe extreme weather events, increased operation and maintenance costs, increased investment in insurance, and potential impact on employee health and safety
• Transitional risks requiring the Group to move towards a sustainable business model, potentially leading to increased operational costs

Mitigation Strategies

• Established a comprehensive environmental management system and obtained ISO 14001:2015 certification
• Implemented emergency plans against extreme weather conditions, including regular evacuation drills
• Continuously reviews and enhances its climate change and energy policies

Supply Chain Management

Supplier Audits: 73 major suppliers

Responsible Procurement

• Established tender procurement management system
• Evaluation and review mechanism for new contractors/suppliers
• Contracts with clear expectations, policies, and requirements
• Regular evaluation of existing contractors/suppliers
• Priority given to suppliers with outstanding environmental and social performance
• Green procurement and encouragement of eco-friendly products

Climate-Related Risks & Opportunities

Physical Risks

• More frequent storms, typhoons, and flooding
• Changes in precipitation patterns

Transition Risks

• Consumer preference shifts towards sustainable lifestyles
• Regulatory changes and mandates on products and services

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Environmental, Social and Governance Reporting Guide under Appendix 27 to the Listing Rules

Certifications: ISO 14001:2015, ISO 45001:2018, ISO 9001:2015

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

• Environmental Compliance
• Operating Practices
• Operational Compliance
• Quality Management
• Customer Privacy Protection

Environmental Achievements

• Reduced monthly average electricity consumption from 0.15RMB per square meter to 0.12RMB per square meter
• Reduced monthly average water consumption from 0.020RMB per square meter to 0.013RMB per square meter
• Replaced existing single-illuminance LED lamps and regular light bulbs with radar-sensing dual-illuminance LED lamps

Social Achievements

• No cases of child labour identified
• No cases of forced labour identified
• No cases of material non-compliance with relevant labour-related laws and regulations
• No cases of complaints with regard to workplace discrimination or harassment
• Provided different types of training for its employees, such as the knowledge of property management, services requirement and market situation for the general employees and the knowledge of business communication, customer demands and risk management for the supervisory employees

Governance Achievements

• No reported or prosecuted cases of bribery, extortion, fraud or money laundering
• Implemented internal policies to prevent corruption, such as employee conduct assessment management, management of gifts received on business, declaration of conflict of interests

Climate Goals & Targets

Environmental Challenges

• Potential indirect environmental impacts from operations
• Climate-related risks such as increasingly severe extreme weather events, increased operation and maintenance costs, increased investment in insurance, and endangered employee health and safety
• Transitional risks such as increased operational cost from the change of operational practices and increased operating costs to implement new practices and processes

Mitigation Strategies

• Established a comprehensive environmental management system and obtained ISO 14001:2015 environmental management system certificates
• Put in place emergency plans against extreme weather conditions
• Regular evacuation drills are conducted
• Continuously reviews and enhances its climate change and energy policies

Supply Chain Management

Supplier Audits: 131 major suppliers in 2022

Responsible Procurement

• Established tender procurement management system
• Evaluation and review mechanism for new contractors/suppliers
• Contracts with clear expectations, policies and requirements
• Regular evaluation of existing contractors/suppliers
• Green procurement and encouragement of eco-friendly products

Climate-Related Risks & Opportunities

Physical Risks

• More frequent storms, typhoons and flooding, and changes in precipitation patterns
• Increased operation and maintenance costs

Transition Risks

• Increased operational cost from the change of operational practices
• Increased operating costs to implement new practices and processes

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Environmental, Social and Governance Reporting Guide under Appendix 27 to the Listing Rules

Certifications: ISO 14001:2015, ISO 45001:2018, ISO 9001:2015

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 2022 China International Property Management Summit Forum: “2022 Top 100 Brand Value in China’s Property Management Industry”, China Index Research Institute: “Leading Enterprise in Property Service Quality”

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced monthly average electricity consumption from 0.15RMB per square meter to 0.12RMB per square meter.
• Reduced monthly average water consumption from 0.020RMB per square meter to 0.013RMB per square meter.
• Achieved a 20-30% comprehensive energy-saving rate in the air conditioning system through the implementation of an HVAC intelligent energy management system.
• Implemented energy-saving basement lighting retrofit project resulting in energy efficiency and remote control of the lighting system.

Social Achievements

• Organized over 200 community cultural activities.
• Launched "Joyful Elderly" program providing value-added services to nearly 2,500 elderly homeowners.
• Launched the "City Care Program" delivering warm-heart breakfasts to over 10,000 sanitation workers for four consecutive years.
• Provided different types of training for its employees, such as property management, service requirements, market situation, business communication, customer demands, and risk management.
• Organized over 500 emergency incident drills, along with safety training and comprehensive safety inspections, safeguarding the security of more than 150,000 property owners’ assets.

Governance Achievements

• Established internal policies to prevent corruption, including employee conduct assessment management, management of gifts received on business, and declaration of conflict of interests.
• Implemented an internal policy for employee whistleblowing.
• Organized various anti-corruption activities and trainings for its employees.

Climate Goals & Targets

Environmental Challenges

• Potential indirect environmental impacts from operations.
• Climate-related risks such as increasingly severe extreme weather events, increased operation and maintenance costs, increased investment in insurance, and potential endangerment of employee health and safety.
• Transitional risks requiring the Group to move towards a sustainable business model, potentially leading to increased operational costs.

Mitigation Strategies

• Established a comprehensive environmental management system and obtained ISO 14001:2015 certification.
• Implemented various measures for maximizing energy efficiency and preventing wastage (lighting, air-conditioning).
• Implemented measures to reduce water consumption (time-controlled switches for fountains, regular maintenance, reduced water pressure).
• Put in place emergency plans against extreme weather conditions, including regular evacuation drills.
• Continuously reviews and enhances its climate change and energy policies.

Supply Chain Management

Supplier Audits: 154 major suppliers in 2023

Responsible Procurement

• Established tender procurement management system.
• Evaluation and review mechanism for new contractors/suppliers.
• Contracts with clear expectations, policies, and requirements.
• Regular evaluation of existing contractors/suppliers.
• Prohibition of staff disclosure of bidding and procurement information without approval.
• Priority given to suppliers with outstanding environmental and social performance.
• Green procurement and encouragement of eco-friendly products.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (storms, typhoons, flooding), changes in precipitation patterns.

Transition Risks

• Consumer preference shifts towards sustainable lifestyles, regulatory changes on products and services.

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Environmental, Social and Governance Reporting Guide under Appendix C2 to the Listing Rules

Certifications: ISO 14001:2015, ISO 45001:2018, ISO 9001:2015

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• HVAC intelligent energy management system
• Energy-saving basement lighting retrofit project

Awards & Recognition

• 2023 Top 100 Brand Value in China’s Property Management Industry
• 2023 Demonstration of China Services Entity