2023
S U S TA I N A B I L I T Y
REPORT

Contents
4

About this Report5

About Hang Lung Properties

6

Message from the Vice Chair

8

Message from the Chief Executive Officer

102023 Highlights

15

Our Approach to Sustainability

32

Climate Resilience

51

Resource Management

67

Wellbeing90

Sustainable Transactions

114

Appendix 1 - Key Sustainability Trends

119

Appendix 2 - Memberships and Charters

122

Appendix 3 – Strategic ESG KPIs

127

Appendix 4 – List of Sustainable
Building Certificate

130

Appendix 5 – Performance Tables

148

Appendix 6 – Independent Assurance
Opinion Statement

152

Appendix 7 – Independent Practitioner’s
Assurance Report for Green Bonds andGreen Loans

156

Appendix 8 – ISSB IFRS S2 Climate-related
Disclosures Content Index

169

Appendix 9 – Content Indices for
Reporting Guidelines

Hang Lung Properties Limited
Stock code: 00101

Registered office:28th Floor, Standard Chartered Bank Building,
4 Des Voeux Road Central, Hong Kong+852 2879 0111
Sustainability@HangLung.com
www.hanglung.com
www.hanglung.com/sustainability© Hang Lung Properties Limited 2024
If there is any discrepancy or inconsistency between the
English and the Chinese versions, the English version
shall prevail.

INTRODUCTION

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

ABOUT THIS REPORTThis is the 12th sustainability report (the “Report”)

Social and Governance (“ESG”) Reporting Guide

for Hang Lung Properties Limited (“the Company” orcontained in Appendix C2 of the Rules Governing“Hang Lung Properties,” stock code: 00101) and its

the Listing of Securities on The Stock Exchange ofsubsidiaries (collectively known as “Hang Lung” or “theHong Kong Limited (“HKEX”) (ESG Reporting Guide).

Group”), including Hang Lung Properties Limited. As the

The adoption of these reporting standards ensuresproperty arm of Hang Lung Group Limited (“Hang Lungthat the content presented is accurate, balanced, clear,

Group,” stock code: 00010), the Group produced andcomparable, reliable and disclosed in a timely manner.

issued this Report to disclose information transparently

We identified material ESG topics through ongoingto our stakeholders regarding the Group’s material

stakeholder engagement and our annual materiality

sustainability issues from January 1, 2023 to December

assessment. Quantitative data are reported consistently

31, 2023, unless otherwise specified. This Report follows

and presented in a manner that allows for meaningful

our Sustainability Report 2022, which was publishedcomparisons over time, while the methodologies usedonline in April 2023.

for calculations are described in the Performance Tables
in Appendix 5 to facilitate public review. A list of

Scope of this Report

properties included in the reporting boundary is alsoThis Report focuses primarily on the Group’s

provided in Appendix 5 to allow for year-on-year scope

management approach to material sustainability issues.

comparison. The Report also reflects both positive

Economic and social key performance indicators (KPIs)

and negative aspects of our performance to enable

reported across our material topics cover our entire

an unbiased and reasoned assessment. Information

operations. To ensure the disclosed data reflect thein this Report has been independently verified bynormal operating conditions of the properties, unlessthe British Standards Institution with reference tootherwise specified, the reported environmental KPIs

the GRI Standards, the HKEX ESG Reporting Guide,

exclude new properties that have been operated by theand fundamental reporting principles, as detailed inGroup for less than one year. The KPI reporting scope

the Independent Assurance Opinion Statement inin this Report remains the same as for our Sustainability

Appendix 6.

Report 2022. The reporting scope for environmental KPIs
also excludes sold properties. The properties covered by
the reported environmental KPIs include 24 properties
in Hong Kong, as well as ten in mainland China. 228
Electric Road was excluded as it was opened in July
2023. For the full list of properties, please refer toAppendix 5.

opportunities arising from climate change, the potential
impacts on our business, and the actions we are taking
to mitigate risks and capture business opportunities. We
have done so with reference to IFRS S2 Climate-related
Disclosures published by the International Sustainability
Standards Board (ISSB). Lastly, we have also madeWe also report on our progress towards ourour best efforts to report against metrics required bysustainability targets. In selecting base years for such

the Sustainability Accounting Standards Board (SASB)

targets, we consider several factors including data

for the real estate sector. Please refer to Appendix 9

availability, timeliness, and representativeness.

for details.

Reporting Standards and Assurance

Contact Us

This Report has been prepared in accordance with

We welcome your feedback on our sustainability report

Global Reporting Initiative (GRI) Standards with content

and sustainability performance. Please share your views

defined based on the principles of stakeholder

with us at Sustainability@HangLung.com.

inclusiveness, sustainability context, materiality, andcompleteness. It also complies with the Environmental,

4

In addition, in Appendix 8 we have disclosed risks andHang Lung Properties Limited
Sustainability Report 2023

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

ABOUT HANG LUNG PROPERTIES
Headquartered in Hong Kong, Hang Lung Properties
develops and manages a diversified portfolio of worldclass properties in Hong Kong and the nine Mainland
cities of Shanghai, Shenyang, Jinan, Wuxi, Tianjin,

Our Vision
We create compelling spaces thatenrich lives

Dalian, Kunming, Wuhan and Hangzhou. With its luxury
positioning under the “66” brand, the Group’s Mainland
portfolio has established its leading position as the“Pulse of the City.” Hang Lung Properties is recognized
for its growing leadership role in enhanced sustainability
initiatives in real estate as it pursues sustainable growth

Our Mission
We pursue sustainable growth byconnecting our customers and communities

by connecting customers and communities. For detailsof our business performance and outlook, please refer toour 2023 Annual Report.

Our Values
We live up to our brand motto, We Do It Well,by focusing on:
Integrity: We maintain the highest standards of integrityby operating according to principles of fairness, mutual
respect and adherence to business ethics.
Sustainability: Together with our pursuit of sustainablebusiness growth, we promote the long-term
development and wellbeing of our communities.
Excellence: We are committed to delivering the finest
services and experiences that surpass the expectationsof our customers, tenants and communities.
Openness: We maintain an open and inclusive culturethat respects diverse opinions. We strive to embrace newideas and cultivate innovative thinking.

Hang Lung Properties Limited
Sustainability Report 2023

5

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

MESSAGE FROM THE VICE CHAIR
In my remarks a year ago (for our Sustainability Report2022), I wrote that Hang Lung sees partnerships as animportant feature of our sustainability and especiallydecarbonization efforts. I’d like to continue this theme
here and share some of the progress we achievedin 2023.

Tenant Partnerships
Building on our pioneering sustainability partnershipwith LVMH Group, in December 2023 we launched avoluntary partnerships program for all our tenants onsustainability. Called Changemakers, the program invites
tenants to commit to a series of sustainability actions ateither the ‘Foundational’ or ‘Advanced’ levels. We are now
piloting the program with our first group of tenants, bothin Hong Kong and mainland China, and will look to scale
its impact over time.

Supplier Partnerships
We also need to engage suppliers to reduce ouremissions from building materials like concrete andsteel. In May 2023 we announced a strategic
collaboration with CLEANCO2, a startup, to apply low
carbon recycled concrete aggregate and low carbon
Adriel ChanVice Chair and Chair of the Sustainability Steering Committee

concrete bricks in our development projects, startingwith our Westlake 66 development project in Hangzhou.
This pioneering initiative was one of nine examples ofinnovation featured in a global Urban Land Institutereport on building materials.
With respect to steel, in December 2023 Hang Lung
became the first real estate company in mainland
China and Hong Kong to join Climate Group’s SteelZero
initiative. Under the initiative, we have committed tosourcing low-emissions steel on the path to net zerosteel. In 2023, the carbon emissions from the steel inour development projects accounted for approximately
40% of the company's total embodied carbon emissions
for that year. In 2024, we are collaborating with
SteelZero to conduct internal training, work with key
suppliers towards delivering lower carbon steel, andconvene discussions on challenges and opportunities
with key stakeholders.

6

Hang Lung Properties Limited
Sustainability Report 2023

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

University Partnerships

In short, Hang Lung’s values of openness andIn 2010, we established the Hang Lung Center forsustainability go very well together. We are pursuing

Real Estate at Tsinghua University, a partnershipseveral forms of collaboration to help the real

between Hang Lung and Tsinghua University. The Centerestate sector move faster on decarbonization

advances academic research and fosters industry-and sustainability.

academia collaboration in the real estate sector. In 2023,
we launched a “Sustainable Real Estate Scheme” at
the Center to encourage innovative and interdisciplinary
research at Tsinghua University in such areas as green
and healthy buildings and low-carbon development, andto promote the application of research findings to daily
life. We supported seven projects in 2023 and arereviewing proposals for potential projects to support in

Finally, I’d like to make a comment about my assuming
responsibility as Chair of both Hang Lung Group andHang Lung Properties with effect from April 26, 2024.
Sustainability has long been a personal passion of mine,so stakeholders can rest assured that the company willcontinue to place sustainability at the center of ouragenda in the years and decades to come.

2024. As I said at a conference we had at Tsinghua
University in January 2024, “The pace of change is fastertoday than ever, and the real estate sector is also more
exposed to disruption than ever before. We must be
open to all sources of innovation and new ideas, suchas those generated at top universities like Tsinghua, so

Adriel ChanVice Chair and Chair of the Sustainability Steering
Committee (SSC)
March 2024

that we can quickly adapt.”

Hang Lung Properties Limited
Sustainability Report 2023

7

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

MESSAGE FROM THE
CHIEF EXECUTIVE OFFICER

Weber Lo
Chief Executive Officer

This Sustainability Report 2023 is Hang Lung’s 12th

2. Office Rejuvenation in Hong Kongannual sustainability report. In 2023, we continued toWith employee wellbeing as a priority, we are renovating

make strides in environmental, social and economic

our offices in Hong Kong. While enhancing the working

sustainability. Here are eight of our achievements:

environment for our staff, we are also mindful of theamount of waste generated in the process. The first

1. Health and Safety Initiatives

phase of the Hong Kong rejuvenation has seen overWe enhanced our health and safety practices through3,200 office resources (e.g., furniture and electricalnew forms of collaboration across departments,

appliances) reused, redistributed, or recycled, diverting

expanded training and new projects. In June 2023, tonearly 140,000 kg of municipal waste from landfill.

highlight the importance of safety across the Group,
we had a series of informational and engagement

3. Common Charter with LVMH Group

activities covering over 4,200 employees and 1,100

Following the announcement of our sustainability

contractor staff.

partnership in 2022, the two groups published our
Common Charter: Joining Forces to Accelerate Change inMarch 2023. The Charter outlines 20 actions the Groups
commit to pursuing in 2023 and beyond. We will publish
an update in 2024.

8

Hang Lung Properties Limited
Sustainability Report 2023

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

4. Changemakers Program for Tenants

7. Sustainable FinanceTo encourage all our tenants in both Hong Kong andIn January 2023 we launched our Sustainable

mainland China to partner with us on sustainability, weFinance Framework to further support our long-term

launched a voluntary program entitled Changemakers. To

sustainability objectives, with 55% of total debts andjoin the program, a participating tenant must commit toavailable facilities with ESG-related elements by the end

at least six actions related to sustainability.

of 2023.

5. Low Carbon Concrete Bricks at Westlake 66

8. Economic Performance

We applied low carbon concrete bricks to our Westlake

Overall rental revenue of Hang Lung Properties and66 project in Hangzhou, becoming the first commercial

Hang Lung Group increased by 3% and 2%, respectively.

development project in mainland China and Hong

The solid leasing performance can be attributed to ourKong to do so. The bricks feature a proprietary

best-in-class customer relationship management (CRM)

carbon dioxide mineralization technology developed byprograms, continual tenant mix upgrade, and businessa startup, CLEANCO2.

diversification. It is a testimony of our effective strategies
under the “new normal” marked by a shift in customer

6. Hang Lung Future Women Leaders Program
Since the launch of the program, around 180 female
university students from across the nation haveparticipated and received over 6,300 hours of training
and mentorship. Among the participants, 75% arebehavior in the post-pandemic world.
For further details on our sustainability initiatives,
we invite you to peruse our report. Thank you foryour interest.

the first in three generations in their families toattend university.

Weber Lo
Chief Executive Officer
March 2024

Hang Lung Properties Limited
Sustainability Report 2023

9

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix2023 HIGHLIGHTS
Key Achievements and Initiatives

41%

reduction in
Scope 1 and 2
greenhouse gases
emissions intensity
compared to 2018baseline

Launcheda programto partner withtenants onsustainability, Changemakers,
applicable to interested
tenants in both Hong Kongand mainland China

180

femaleuniversity students
across the nation
benefitted from theinaugural Hang Lung

Future Women
Leaders Program

Westlake 66 inHangzhou is the firstcommercial development
project to use low carbon
concrete bricks inmainland China andHong Kong

Increased percentile
rank for employee
engagement in the

Gallup Overall
Database by

6th percentile to74th percentile

Launched a Common
Charter with LVMH
Group to collaborate
on 20 Actions toaccelerate

sustainability
progress

Implemented a holistic
resource utilization
scheme for Hong Kong

Office Rejuvenation
Project which diverted
nearly 140,000 kg ofmunicipal waste fromlandfill

Over 80% construction floor area (CFA)
certified to LEED/BEAM Gold or above

Deepened
cooperation on
industry-university
work in the field ofsustainability with theHang Lung Center
for Real Estate at
Tsinghua University

Hang Lung As One volunteer teamcontributed 69,891 volunteering hours,
benefitting 37,495 people in Hong Kongand mainland China during 2023

10

Hang Lung Properties Limited
Sustainability Report 2023

Launched the Sustainable Finance
Framework to further support ourlong-term sustainability objectives.
55% of total debts and available
facilities comprise ESG-related elements

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Sustainability Awards and AccoladesAwards and Recogntion
Excellence Award in Environmental,
Social and Governance Reporting
2023 HKMA Best Annual Reports
Awards, The Hong Kong Management
Association

Best Companies toWork for in Asia
2023
HR Asia

Distinction Award(Large Organization Category)Hong Kong Sustainability Award 2023,
The Hong Kong Management
Association

OSH Report Award – Bronze AwardThe 22nd Hong Kong Occupational
Safety and Health Award, Occupational
Safety & Health Council

Grand Award for Excellence inEnvironmental Positive Impact,
Commendation for Best ESG Report– Large Cap, and Commendation for
Carbon Neutral Award

Best Corporate Governance and
ESG Awards 2023 – Special
Mention in the Most Sustainable
Companies and Organizations(MSCO) Award (Non-Hang Seng
Index (Medium Market
Capitalization) Category)Hong Kong Institute of Certified Public
Accountants (HKICPA)

Hong Kong ESG Reporting Awards(HERA) 2023

China Green Point – Sustainable
Practice Case of the Year 2023, andChina Green Point – Gravity Point –10 Green Life Models in the Eyes ofConsumers
Yicai

2023 Top CSR Company
Social Responsibility Conference

BREEAM & GRESB Joint Awards
in the Category of ESG
Leadership Awards, and BREEAM
Commercial Award – Leadership
BRE China Awards 2023

Hang Lung Properties Limited
Sustainability Report 2023

11

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Participation and Performance in Key Benchmarks and Indices

MSCI ESG Rating“AA” rating

Member of Dow Jones
Sustainability Indices

ESG score: 3.5“Low” ESG risk rating

Sustainalytics

Constituent of FTSE4Good

S&P Global
ESG score: 66

Hang Seng Corporate
Sustainability Index“AA“ rating

Institute of Public &Environmental Affairs (IPE)
GRESB
4-star performance rating

Hang Lung obtained more than 35 ESG awards in 2023.
For further information on awards and recognition given
to the Group, please visit our corporate website.

12

Hang Lung Properties Limited
Sustainability Report 2023

Green Supply Chain Corporate
Information Transparency
Index (CITI) Score: 20.3
Corporate Climate Action
Transparency Index (CATI)
Score: 30.0

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Key Figures
Business Overview

3

Completed investment
properties: approximately

million square metersin Gross Floor Area

10
citiesLocated in

4,200+
Number of Employees

Environmental
Scope 1 and 2
GHG emissions
intensity

41%

Absolute Scope
1 and 2 GHG
emissions

reduction vs2018 baseline

15.7%
reduction vs2019 baseline

Absolute Scope 3 GHG emissions
Water intensity
Electricity intensity

13.7%
reduction vs2018 baseline

7.6%
reduction vs2018 baseline

810,580 tCO2e in 2023
Operational waste
diverted from landfill

66%

Social

37,495beneficiaries from ourcommunity investment
programs

OverallFemale-to-male pay ratio

1:0.9869,891hours ofvolunteering
services

Hang Lung Properties Limited
Sustainability Report 2023

13

OUR
SUSTAINABILITYSTRATEGYIntroduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

OUR APPROACH TO SUSTAINABILITY
Overview
Hang Lung pursues its mission of sustainable growthwith sustainability as one of its core values byconnecting its customers and communities, andembedding sustainability in all aspects of its business.
Our Sustainability Framework, which comprises threefoundations and four priorities, provides clear direction// Our mission of sustainable growthhighlights both the financial and
ESG dimensions of sustainability. We
recognize that both are indispensablefor our continued success //Weber Lo, CEO

for Hang Lung to define and strengthen a resilientbusiness, make progress on key material issues together
with our stakeholders, and be guided towards ourambition of becoming one of the world’s mostsustainable real estate companies.

Hang Lung Properties Limited
Sustainability Report 2023

15

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

The Three Foundations describe the core organizational

Wellbeing

Sustainable
Transactions

Appendix• Integration of sustainability into KPIs andcontexts and indispensable principles underlying all of

expenditure review: Sustainability actions andour sustainability efforts:

considerations are embedded into the Group’s annual• Company: Strong team, governance, andcommunity relations• Building: Safe, green and healthy space• Customer: Collaboration for impact
The Four Priorities reflect the top four overarchingsustainability issues where the Group aims to make

Key Performance Indicators (KPIs) and annual
expenditure reviews to integrate sustainability acrossall business operations.
• Employee empowerment: We empower our
employees to participate in our sustainability
journey through various capacity building andoutreach opportunities.

significant progress and support its leadership ambitions

To become one of the world’s most sustainable

in the next decade:real estate companies, we also work to continually• Climate Resilience: Adapt to climate change anddecarbonize our business• Resource Management: Optimize use andstrengthen our strategies for sustainability governanceand management:• Setting time-bound sustainability commitments:

management of natural resources (energy, water,

We establish long-term and mid-term Sustainability

and materials)

Commitments, Goals and Targets to to drive• Wellbeing: Sustain a healthy, inclusive and safe
environment and promote social wellbeing• Sustainable Transactions: Promote sustainability
practices in all types of business transactions
Sustainability is a far-reaching, multidisciplinary concept

aspirations and inspire innovation and action.
• Aligning with international standards: We adhere
to internationally recognized standards and bestpractices, such as the Science Based Targets
initiative’s Net-Zero Standards and sustainablebuilding certifications.

that influences all aspects of our business. At Hang

• Continual improvement and benchmarking: We

Lung, we have adopted a comprehensive approach,continually seek improvement by participating in

combining top-down commitments and bottom-up

various ESG benchmarks and indices and awards.

engagement to drive employees and stakeholders
towards sustainability leadership. In this Report, we
will elaborate in detail on our approach, which issummarized below:• Top-level commitment: We have obtained
endorsement of policies and frameworks from the• Advancing sustainability across the value chain: Oursustainability efforts extend beyond the direct scopeof our business operations and development, with theaim of achieving positive sustainability impacts along
the value chain.
• Enhancing transparency and communication: We

Board and senior management to define a clear

continually improve our transparency through annual

agenda and principles for the sustainability context ofsustainability reporting and regular media channels,

Hang Lung.

sharing know-how, lessons learned, and progress• Defined roles and responsibilities: Every department
and cross-functional committee, from top

with stakeholders.
• Thought leadership and industry engagement: We

management and operations, has clearly defined roles

contribute to thought leadership by sharing ourand responsibilities to ensure adequate resources andexperience and insights, interacting with our industry

accountability for effective implementation.

peers at speaking events and throwing our support
behind industry associations to foster positive change
within the industry.

16

Hang Lung Properties Limited
Sustainability Report 2023

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Materiality Assessment
The Group has a robust approach to materiality
assessment, stakeholder engagement, trends analysis
and the prioritization of material ESG issues. We
regularly review ESG issues relevant to our businessand engage in dialogue with stakeholders to understand
how well our sustainability performance meets the
expectations of stakeholders.
Materiality assessment is critical for advancing oursustainable development efforts. We first identify,
analyze and refine our understanding of multiple
dynamic ESG issues that could affect our business andWellbeing

Sustainable
Transactions

Appendix

our stakeholders, followed by the prioritization of shortlisted topics that inform our business strategy, targets
and reporting. Every year, we engage a third party toreview and update our assessment. Our 2023 materiality
assessment process is outlined below.

2023 Materiality Assessment
Approach
In 2023, we engaged an independent consultant to
conduct a double materiality assessment with reference
to the methodology recommended by the European
Financial Reporting Advisory Group.

1

2

3

4

Identify key ESG
trends andstakeholders’concerns

Identification of
relevant ESG issues

Prioritization ofmaterial issues

25 ESG issues were
determined to behighly relevant to ourbusiness.

Findings from amulti-layered
prioritization process
were consolidated andweighed in the model
to derive the double
materiality matrix. The
findings were further
validated through2024 stakeholders
engagement survey
and a focus group
discussion with internal
stakeholders.

Review andvalidation ofmateriality
assessment results

A scanning exercise
was conducted to
explore top
environmental andsocial trends that might
affect our business.

The list of material
topics and themateriality matrix werereviewed and approvedby the Chair of the SSC.

Issues that Matter: Key Sustainability Trends

Identification of Relevant ESG issues

To strengthen our understanding of how the fast-

In 2023, we identified 25 ESG issues relevant tochanging sustainability landscape presents risks andour business. We dropped “Financial Performance

opportunities to our business, we refreshed our trend

and Investor Interests” and “Grievance Mechanism”

analysis in 2023, and identified nine global and nationalfrom the list and introduced three new topics: “Local

sustainability trends that might affect our business.

Economic Development,” “Responsible Consumption,”

Please refer to Appendix 1 for further details.

and “Technology and Innovation.”

Hang Lung Properties Limited
Sustainability Report 2023

17

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Prioritization of Material Issues
We assessed the material ESG issues in two ways: on the one hand, by determining their relative impact to the Group’s
financial materiality; and on the other hand, by determining the impact of the Group’s activities on issues affecting thesustainable development of the broader society and environment. We considered and weighed multiple inputs, including
surveys from external and internal stakeholders, research into key ESG trends, and sustainability and financial reporting
standards. The matrix highlights the relative importance of individual issues in terms of their financial impact on Hang
Lung and Hang Lung’s impact on society and the environment in respect of these issues. Topics rated as essential forbusiness or society were considered as material. The Vice Chair of the Group – in his capacity as the Chair of the SSC –annually reviews and endorses the materiality assessment result and stakeholder engagement findings.
Materiality Matrix

Importance to stakeholders (stakeholde r materiality)

1

2
8
12

15

4

3

9
17 16

20
22

5

10
14 13

7

18

6

11

21
19

25

23

ESG Topics
24

Environment
SocialGovernanceImportance to business continuity and development (financi al materiality)

Environment
1

8

12

18

18

Energy efficiency
and carbon emission
reduction
Waste disposal
and recycling
Water, land and air
contamination
Water efficiency
and reduction

21

Climate adaptation
and resilience

22

Green building
certification

23

Biodiversity

Hang Lung Properties Limited
Sustainability Report 2023

Social2

Customer healthand safety

3

Occupational healthand safety

4Local economic
development

6

Employee attraction
and retention

7

Employee wellbeing

10

Social integration
and accessibility

Governance11

Employee development

5

Ethics and integrity

13

Diversity and equal
opportunities

9

Cybersecurity andinformation privacy

14

Human rights andlabour practices

16

Responsible supply
chain management

15

Community engagement
and investment

19

Risk and crisis
management

17

Customer engagement
and collaboration

20

Technology andinnovation

25

Responsible
consumption

24

Sustainable financeIntroduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Material ESG Issues
GRI
Standards

Aligned SDGs

Addressedin this ReportMedia

Governments &Regulators

NGO Partners, Academia,& Industry Associations

Communities

Tenants & Customers

Suppliers & Contractors

Investors & Shareholders

Stakeholders impacted

Employees

Material ESG Issues

ClimateResilience

1

Energy Efficiency
and Carbon
Emissions Reduction*

•

•

•

2

Customer Healthand Safety*

•

•

•

3

Occupational Healthand Safety*

•

•

•

•

•

•

•

4

Local
Economic Development

•

•

•

•

•

•

•

•

GRI 201

Performance
Tables Economics

5

Ethics and Integrity*

•

•

•

•

•

•

•

•

GRI 205

Our
Sustainability
Strategy

6

Employee Attraction
and Retention*••

GRI 401
GRI 404
GRI 405
GRI 406

Wellbeing

7

Employee Wellbeing*••

GRI 403

Wellbeing

8

Waste Disposal
and Recycling*••

GRI 306

Resource
Management

9

Employee Development*••

GRI 404

Wellbeing

•

•

•

•

•

•

•

•

GRI 302
GRI 305

GRI 416

Resource
Management
Sustainable
Transactions
Wellbeing

•

•

•

•

•

GRI 403•

Sustainable
Transactions* Material issues in 2022

In this Report, we disclose in detail the concerns and ideas raised by our stakeholders and our responses regarding
the nine material issues. In addition, the Report also outlines our management approach and performance for theremaining topics.

Hang Lung Properties Limited
Sustainability Report 2023

19

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Stakeholder Engagement
Our approach to stakeholder engagement ensures a good understanding of the views and expectations that help define
our current and future sustainability strategies. We proactively engage with stakeholder groups directly impacted by ouroperations, such as employees, investors, customers, tenants, suppliers and contractors. We also engage with various
external groups and experts for guidance on our focus areas as well as with those whose interests intersect with ourbusiness interests in various ways, such as local communities, NGO partners, government bodies, academia, media,
and industry associations. In 2023, we continued to engage regularly with key stakeholder groups, as listed in the tablebelow, to ensure effective communication of our sustainability progress in their areas of concern. Feedback collected
through all stakeholder engagement exercises also contributed to the preparation of this Report.

Form of Engagement

Employees• Biannual two-way
performancecheck-in and review• Regular drinks sessions with

Tenants and Customers• Regular customer engagement surveys• Annual tenant satisfaction surveys and interviews• Tenant and customer surveys with sustainability focus• Ongoing social media communication through various media• Quarterly corporate newsletter and monthly articles

management• Annual dinner• Quarterly corporate newsletterand monthly articles• Annual sustainability-focusedinterviews, surveys andfocus groups• Annual employee engagement
surveyCommunities• Regular two-way
communication
with international and local
communities at the Board level• Ongoing community programs• Monthly community events• Quarterly corporate newsletter

NGO Partners,
Academia andIndustry Associations• Regular collaboration onsustainability and community
investment initiatives• Regular participation inLong Service Awardand monthly articles

conferences, seminars, andnetworking events• Annual conference• Occasional one-on-one interviews• Occasional one-on-one interviews• Emerald Award, CEO Award,(management conference,
functional conference)by independent consultants

by independent consultants• Ongoing digital platform
communication through intranet,
WeChat• Regular staff activities• Exit interviews• Regular sustainability newsletter

Media

Investors and Shareholders• Annual sustainability reporting, benchmarks and indices• Regular investor interviews, meetings, roadshows, andinvestor conferences• Annual General Meeting

Suppliers andContractors

Governments
and Regulators

announcements
and press conferences• Regular project• Occasional media briefings• Screening and performance• Regular meetings• Occasional site visits by• Biannual results

and luncheons

meetings
evaluation• Focus group discussions

20

Hang Lung Properties Limited
Sustainability Report 2023

government officials• Government consultations

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Our Sustainability Goals, Targets
and KPIs
Sustainability Goals and Targets
How we formulate our near-term,
mid-term and long-term goals

Wellbeing

Sustainable
Transactions

Appendix

In December 2021, the Group moved a step further,announcing a set of targets to be achieved by the endof 2025 (“25 x 25 Sustainability Targets” or “25 x 25”).
These targets address the four priorities outlined in theGroup’s Sustainability Framework, defining concrete andquantifiable measures to tackle sustainability challenges
and providing employees with a clear blueprint to the endof 2025. Every year, we review, analyze, and disclose our2050 Net-Zero Commitment

progress towards achieving the 25 x 25 Targets in the
Sustainability Steering Committee (SSC), the Board, and
our Sustainability Report. Highlights include:2030 Sustainability Goals and Targets

Climate Resilience
2025 Sustainability Targets

Targets related to Scopes 1, 2, and3 emissions, renewable electricity, andclimate adaptation.

Annual ESG KPIs

Resource Management
The Group recognizes that sustainability leadership

Targets related to recycling, water use, andlandfill diversion.

requires a well-integrated set of short, medium and longterm goals, targets and KPIs.
In December 2020, after almost a year of internaland external consultation, the Group announced aset of sustainability goals and targets for 2030.
Organized according to the four priorities of our

Wellbeing
Targets related to employee engagement,
gender pay ratio, people with disabilities,
health and wellness, safety, and youth.

Sustainability Framework, the goals provide broad
principles governing our efforts, while the targets provide
more specific intended outcomes for each goal. This
2030 agenda reaffirms the Group’s commitment tocreating sustainable value and reflects our ambition
to become one of the world’s most sustainable realestate companies.

Sustainable Transactions
Targets related to suppliers’ ESG
performance, marketing events, leases,sustainable finance, and asset acquisitions.
Please see below the full list of 2030
Sustainability Goals and Targets and the 25 x 25
Sustainability Targets.

Hang Lung Properties Limited
Sustainability Report 2023

21

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Climate Resilience2030 Goal

2030 Targets

Reduce carbon
footprint in line withclimate science1

Build a nearlynet-zero carbon
building

2

Demonstrate best
efforts to achieve a
70% reduction in
Scopes 1 and 2
greenhouse gas
emissions intensity(per m2), comparedto the 2018baseline

2025 Targets
GHG Intensity
40% cumulative reduction
in GHG intensity (kgCO2e/m2) relative to 2018
Electricity Intensity
18% cumulative reduction
in electricity intensity(kWh/m2) relative to 2018
Renewable Energy
25% of our mainland
China portfolio electricity
demand met by renewableenergyElectric Vehicle (EV)
Charging
Wherever feasible exceed
local regulations for theprovision of parking
spaces installed with EV
charging facilities across
our portfolio

Embodied Carbon Intensity
Demonstrate best efforts
to achieve at least 10%
reduction in embodied
carbon intensity (kgCO2e/m2) for new development
project that begin in 2022
or later, compared totypical practice in an
equivalent building
GHG Intensity (Tenants)
15% reduction in GHG
intensity (kgCO2e/m2)
from tenants’ electricity
consumption for our
properties in mainland
China, relative to 2018
Climate Adaptation
Complete technicalanalysis for climate
adaptation measures for
all properties

Resource Management
2030 Goal

2030 Targets

Accelerate thetransition to acircular economy byminimizing resource
consumption andmaximizing
recycling by 2030

3

Incorporate circularbuilding principles
in new properties

4

Implement water
management
program in allproperties

5

22

Hang Lung Properties Limited
Sustainability Report 2023

Divert 90% of
operational wastefrom landfill

2025 Targets
Construction Waste
60% of construction waste
diverted from landfill for
new projects starting in
2022 with maximized
recycling
Construction Material Use
Demonstrate best efforts
to maximize the use ofrecycled, reused andbio-based materials in all
new projects

Operational Water Use
10% reduction in water
intensity (m3/m2/year)
relative to 2018
Operational Waste
70% of operational waste
diverted from landfill

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Wellbeing2030 Goal

2030 Targets

Ensure employees,
customers andcommunities enjoy
an unrivalled
environment that
promotes theirhealth and wellbeing

6

Assess wellbeing
for all employees
and key customers

7

Meet or exceed
wellbeing
standards for new
properties

8

Work with youth onsustainability
solutions in all
cities where wehave assets

2025 Targets
Achieve an employee
engagement rating
greater than or equal to
the 75th percentile

Maintain zero workrelated fatalities for
employees andcontractors

Obtain local orinternational health andwellness certification for
all our existing Mainland
properties

Conduct an audit of all our
properties and corporate
practices on how toenhance wellbeing andopportunities for persons
with disabilities

Maintain a Lost Time
Injury Rate of 1.5 or below
for employees
Maintain Female-to-Malepay ratio of 1:1
Obtain WELL Goldcertificate or equivalent
for at least one newproperty in Hong Kongand mainland China

Deliver priority ESG
training targeted to all
departments and seniority
levelsWork with youth on
wellbeing community
initiatives at all properties
by 2025

Sustainable Transactions
2030 Goal

2030 Targets

Collaborate with all
suppliers andcustomers toadvance oursustainability
priorities

9

Implement supplierevaluation andranking system

10 Engage all tenants

on emissions
reduction, resource
management, andwellbeingenhancement2025 Targets
Embrace technology tobuild a robust digitalplatform for assessing
suppliers’ ESG
performance
100% of marketing events
evaluated for theirsustainability impacts

100% of leases
incorporate sustainability
provisions
50% of total debts andavailable facilities fromsustainable finance100% of potential asset
acquisitions include ESG
due diligence

Hang Lung Properties Limited
Sustainability Report 2023

23

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Annual ESG KPIs
In October 2020, in support of our 2030 goals andtargets, our SSC endorsed the concept of annual"Strategic ESG KPIs." The strategic ESG KPIs cascade
down to expectations for individual employees and aretied to the biannual performance appraisal process.
Starting in 2021, we establish nearly 30 Strategic ESG
KPIs every year. The KPIs have empowered us tocollect more data and drive progress in various areas,
including GHG reduction, sustainable procurement forour operations and projects, and improving employee
wellbeing. The Strategic ESG KPIs are assigned to
relevant department heads at the beginning of the yearwith departmental progress directly tied to biannual
performance reviews for employees and management at
all levels, including C-level executives.
In 2023, we completed 24 of our 27 Strategic ESG KPIs.
Two KPIs were deferred due to project schedule delays,
and we were not able to meet the target reduction
percentage of our electricity intensity KPI. We reviewed
the KPIs that could not be completed in 2023 during
the mid-year check-in, and have developed follow-up
KPIs for 2024. In addition to our Strategic ESG KPIs,
we also formulated a Common Goal across the Group,
namely, to encourage each department to propose threeideas to advance the Group’s sustainability progress. We
collected 67 ideas under the Common Goal, and are now
studying their feasibility for implementation.
The SSC and Board also endorsed 28 Strategic ESG
KPIs for 2024. For complete details of our 2023 and2024 Strategic ESG KPIs, please refer to Appendix
3. We disclose these KPIs publicly not only tohold ourselves accountable, but also to encourage
stakeholder collaboration in all identified areas.
While we are pleased with our ESG KPIs progress inthe past years, we need to continue to make significant
progress in all these areas. In other words, the KPIs
represent only the start of a structured, disciplined
process that will continue annually on the path to 2025,
2030 and 2050.

24

Hang Lung Properties Limited
Sustainability Report 2023

Wellbeing

Sustainable
Transactions

AppendixIntroduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Sustainability Governance
The Group acknowledges the need for effective and strong sustainability governance, including clear definitions of theaccountabilities, roles and responsibilities of various parties.

Sustainability Governance Structure
Our sustainability governance structure is summarized as follows:

Audit Committee

Board of Directors

Oversight of risk management
systemOversight of ESG/sustainability
strategy with view to long-term
development of the GroupTop Management
Strategic direction andmanagement including ofenterprise risks and ESG KPIs

Enterprise Risk
Management Working Group
Identify and manage
enterprise-level ESG risks

Sustainability Team
Detailed strategy
formulation, coordinationand implementation

Sustainability Steering
Committee (SSC)
Support strategy development
and ESG KPIs

Subcommittees(e.g. Sustainable Finance
Subcommittee, Health and
Safety Subcommittee)

In 2023, we continued to strengthen and refine

In 2020, the Board issued a Joint Statement onsustainability governance at all levels.

Oversight and Management of Environmental, Socialand Governance Issues (the Joint Statement) together

Board Engagementwith the Board of Directors of Hang Lung Group. This

The Board of Directors of Hang Lung Properties

statement elaborates on the Board’s ESG management(the “Board”) has overall responsibility for the Group’s

approach and strategy, as well as the Board's role

ESG strategy and reporting. The Board also provides

in reviewing progress against ESG-related goals andoversight of sustainability trends, risks and opportunities

targets. The Board’s engagement on sustainability issues

affecting the long-term development and positioning ofis robust.

the Group.

Hang Lung Properties Limited
Sustainability Report 2023

25

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

The Vice Chair of the Board is also the executive

sustainability-related policies are reviewed and endorsed

responsible for overseeing the Group’s Sustainabilityby the SSC.

Steering Committee and its Sustainability Team,the department dedicated to sustainability. The

Sustainability Team

Sustainability Team reported three times to the Board

Our Sustainability Team serves as a central function

in 2023. The team meets monthly with the Vice

supporting the entire business in advancing its

Chair to provide updates on progress against thesustainability leadership ambitions. Led by the Deputy

Group’s sustainability priorities, as well as regulatory andDirector – Sustainability, it reports directly to the Vicetrends updates.

Chair. In addition to reporting regularly to the Board

In 2023, the Board received updates on the Group’s
sustainability progress, HKEX’s consultation on climate
disclosure enhancement, and International Sustainability
Standard Board (ISSB) reporting requirements (among
other topics). The Board also conducted an annual
review of the adequacy of resources for the Group’s ESG
performance and reporting and material ESG risks.

Top Management
The top management of the Group provides strategic
direction and oversight of the Group’s sustainability
performance and progress towards achieving its longterm sustainability goals and targets, as well as its
annual sustainability-related KPIs.

and top management, the Team works with colleagues
across all aspects of the business to ensure we pursue
our ambitious goals, targets and Strategic ESG KPIs ina coordinated fashion. As the risk owner for both thephysical and transition risks of climate change under
our Enterprise Risk Management (ERM) framework,
the Sustainability Team provides updates to the ERM
Working Group at least once a year.

Sustainable Finance Subcommittee
The Sustainable Finance Subcommittee (SFS) reports
to the SSC. Chaired by the Chief Financial Officer,
the SFS is comprised of executives responsible forfinance, sustainability, project planning and construction,
operations, and treasury. The SFS meets regularly to

The Sustainability Team reports to the Vice Chair anddiscuss the latest market developments and the Group’s

the Chief Executive Officer (CEO) at least once a month.

plans for sustainable finance. The SFS oversees the

In addition, the direct reports of the CEO and Vice Chair

usage of sustainable finance and approves eligible

all have sustainability-related KPIs for themselves andprojects as required by the Hang Lung Group Sustainable

their departments against which their performance isFinance Framework.

measured twice a year. The CEO in turn reports to theBoard twice a year on the progress of the KPIs of the

Health and Safety Subcommittee

entire top management team.

The Group's Health and Safety Subcommittee (HSS)
aims to advance the Group’s health and safety agenda

Sustainability Steering Committee

as well as to share best practices and lessons learned

The Sustainability Steering Committee (SSC), currently

across all aspects of our business. The HSS ischaired by the Vice Chair of the Group, and comprising

comprised of representatives from human resources,

14 executives from major departments, meets regularly

operations, project planning and construction, legal,

to ensure that understandings of and expectations

internal audit, and sustainability. Reporting on its

for sustainability are aligned across the Group. The

progress to the SSC, the HSS meets at least twice a year

SSC also supports long-term strategy development, theto review the Group’s health and safety processes andimplementation of plans and progress tracking. The

procedures as well as recent internal and external safety

terms of reference of the SSC are available on ourincidents to ensure legal compliance, monitor safety-

website. The SSC meets at least twice a year, and senior

related developments, data and trends, and identify any

executives from various departments update members

areas for improvement.

on the progress of current projects and future plansregarding sustainability. Any changes or updates to

26

Hang Lung Properties Limited
Sustainability Report 2023

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Employees are encouraged to share ideas, safety• Health and Safety Policy (link) – outlines our approachconcerns and observations as well as other issues

to health and safety management in our workplaces,with members of the HSS. The HSS in turn makes

properties, and construction sites.

recommendations to the SSC, top management, and/or
specific departments as appropriate to support continual
improvement of the Group’s health and safety.

Enterprise Risk Management Working GroupTo ensure proper oversight of the Group’s risk
management, the ERM Working Group reports directly
to the Audit Committee. Each enterprise risk is assigned
to a risk owner who must continually monitor said risk
and report to the ERM Working Group.

• Sustainable Procurement Policy (link) – promotes
sustainable procurement decisions and practices,and strengthens sustainability collaboration with
our suppliers.
• Hang Lung Group Sustainable Finance Framework(link) – demonstrates how the Group intends to pursue
sustainable finance transactions.
• Sustainability Steering Committee Terms ofReference (link) – the SSC comprises a crosssection of senior executives and provides a dedicated

The Group acknowledges that ESG-related risks havestructure for the Group to advance its goal of achieving

become more important in recent years, and in response,sustainability leadership. The terms of reference

we focus more on our internal oversight. Climate risk

provide a framework for the general mandate andremains one of the enterprise risks in 2023, and we haveeffective functioning of the SSC.

completed the annual review of our risk exposure andrisk mitigation measures. We also completed an annual
review of our latest materiality assessment of ESGrelated risks to determine whether the results warrant
any adjustments to our enterprise risks.

Sustainability Policies
Key Sustainability-Related Policies andGoverning Documents
Board Policies and Documents:• Joint Statement on Oversight and Management ofEnvironmental, Social and Governance Issues (link) –explains the Board's oversight of ESG issues and how
the Group approaches the management of ESG issues.
• Board Diversity Policy (link) – sets out the Group's• Policy on Transactions with Connected Parties –governs all transactions involving connected parties
with all proposed transactions assessed by theCompany Secretary on compliance issues.

Ethics and Integrity
Integrity is one of the Group’s core values uponwhich we build a sustainable future for our investors,
clients and people. We are proud to uphold a zerotolerance policy regarding corruption and dishonesty,
and to have systems and procedures in place thatenhance transparency and accountability at all levels.
Our previous motto, We Do It Right, has evolved into
We Do It Well, with both expressions evoking thisfoundational feature of our corporate culture.

approach to achieve diversity on the Board.

Code of Conduct
Corporate Policies and Documents:

Acts as a benchmark of ethical behavior for all directors

A set of group-level policies has been developedand staff members to follow.

to communicate the Group’s approach to various
sustainability issues.

• Equal Employment Opportunities Policy (seeCode of Conduct, part 13.1) (link) – sets

• Sustainability Policy (link) – outlines our approachout guidelines to ensure we provide a workto pursuing sustainability leadership over the next

environment that is free from all forms of

decade, including our Sustainability Framework, 2030

unlawful discrimination. It is applicable to all human

Goals and Targets, and details of implementation

resources policies and practices including staff

and governance.

recruitment and selection, staff transfer, promotion,
training and development, discipline, termination, andcompensation and benefits.

Hang Lung Properties Limited
Sustainability Report 2023

27

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management• Personal Data (Privacy) Policy (see Code of Conduct,

Wellbeing

Sustainable
Transactions

Appendix

Anti-Bribery and Anti-Corruption

part 13.2) (link) – provides guidance to protect data

Fraud and corruption are considered serious and are

privacy and the confidentiality of employee personal

subject to periodic monitoring as an enterprise risk underdata, and to comply with applicable legislation.

our ERM framework. The Group’s Anti-Corruption Policy• Occupational Health and Safety Policy (see Codesets out the conduct the Group forbids and the practicesof Conduct, part 13.3) (link) – outlines the Group's

the Group expects from its stakeholders. It also provides

commitment to providing a safe and healthy

guidance for staff members to prevent corruption andenvironment for employees, including occupational

malpractice in the workplace.

safety guidelines to be observed by all directors andstaff members.
In addition, the Group’s Staff Handbook provides asummary of employment terms and benefits. It covers
employee-related policies and procedures including
grievance procedures, whistleblowing and protection of
intellectual property. The Staff Handbook stipulates the

We uphold our culture of integrity by multiple means:• Relevant requirements for our staff are provided in
our Staff Handbook, Code of Conduct, Anti-Corruption
Policy, and our Policy on Offering and Accepting
Advantages and Entertainment.
• Employees are reminded twice a year to declare infollowing policies for our employees:

writing and seek approval from a senior executive of• Grievance Policy and Procedures – establishes ainterest arises.

proper channel for employees to raise and settle theirgrievances. The grievance mechanism is designed
and managed by the Group's Human Resources
Department, which regularly reviews and further
improves the effectiveness of the mechanism.
• Employee Cybersecurity Policy – provides guidance
to employees for maintaining a secure digital
working environment and especially protecting
confidential information.

the Group when an actual or a potential conflict of• Periodic e-mail reminders are sent out by the Human
Resources Department to all staff during festive
seasons listing the guidelines for sending and/or
receiving advantages.
• Online training on the subject of integrity is provided
to employees, covering the Group’s integrity standards,
anti-corruption policy, zero-tolerance approach tobribery and corruption, and ways to handle
improprieties with case studies. At the end of the• Policy on Offering and Accepting Advantages andprogram, participants must pass a test to demonstrate

Entertainment – provides guidelines to all staff

they have sufficient knowledge of the topic. The online

members when offering and/or receiving advantages

introductory training is mandated for new staff, with

and/or entertainment during the normal course ofrefresher training required for all other staff annually.

business, including prohibitions. Clear approval andmonitoring procedures are established to ensure strict
compliance with this policy.
The Board and the top management also adhere to highstandards of business ethics. We regularly communicate• Relevant requirements for our vendors/suppliers areembedded in our Code of Conduct for Contractors,
as an integral part of tendering documents and/or
service agreements.
• Periodic letter reminders are issued to all vendors/

relevant laws and regulations related to integrity. All

suppliers to remind them of our integrity standards

directors are required to declare their interests annuallyand our available whistleblowing channel for themin the statement of interest, and all executive staff are

to raise any concerns about bribery, corruption or

required to declare any conflict of interest on a half-

any malpractice.

yearly basis.

Whistleblowing Policy
The Group is committed to establishing and maintaining
best practices in corporate governance. All directors,
employees and third parties who have business dealings
with the Group are expected to conduct themselves with

28

Hang Lung Properties Limited
Sustainability Report 2023

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

integrity, impartiality and honesty with zero tolerancewith the Group. The Code includes requirements forfor unethical behavior. A whistleblowing mechanism

compliance with laws and regulations, conducting

has been established for internal stakeholders (suchbusiness ethically, care for employees, responsible laboras employees and directors) and external stakeholders

practices, responsibility to the communities, and ethical(such as consultants and contractors, customers anduse of information.

tenants) to seek advice and raise serious concerns about
matters related to suspected or actual improprieties

Risk and Crisis Management

or any behavior that may constitute misconduct

The Group’s Risk Management Framework explains theor malpractice, or other irregularities that should
be reported.
The Group respects that whistleblowers may wish
to file their concerns confidentially and is committed
to protecting individuals who make complaints ingood faith from any unfair treatment (which may
include protection against retaliation or victimization,
unwarranted disciplinary action or unfair dismissal).
Strict measures are in place to protect the identity ofwhistleblowers as well as all information collected, andonly limited parties are granted access on a need-toknow basis. Associated investigations are governed byan independent investigation panel comprising senior
executives from legal, human resources, internal audit
and/or relevant corporate functions to ensure that allcomplaints are handled consistently, objectively andimpartially. Remedial actions are taken in accordancewith final investigation findings. The results of suchinvestigations are reported to the Audit Committee twice
every year.
The Whistleblowing Policy is subject to periodicrole of the Board, Audit Committee and management
in relation to the design, implementation, andmaintenance of a sound and effective risk management
framework, and the principles underling our risk
governance structure.

Enterprise Risk Management
Effective risk management is critical to the Group’s
value creation, business continuity and resilience. It
requires understanding risks throughout all phasesof our business operations from asset selection,acquisition, and allocation, to ownership, management,
and divestment. We are committed to continuallyenhancing our ERM framework, linking it to our
corporate strategies, and integrating it into our day-today operations and decision-making processes.
The Group maintains and regularly reviews its business
continuity plan to ensure key business functions vitalto the Group’s operations always remain uninterrupted,
especially in the event of crisis, emergency or disaster.

review and communicated to all stakeholders via

Crisis Management

various channels (such as the corporate websites,

The Group also maintains a comprehensive crisis

periodic circulars and correspondences, training, tendermanagement system that ensures its preparedness to

documents and terms of contracts, etc.). Our

respond to and recover from emergencies. Our Crisis

full whistleblowing policy is also available on ourManagement Manual sets out the principles, guidelines

corporate website.

and measures across three areas – prevention, response
and recovery. This approach ensures that the relevant

Anti-Competition

personnel have clear guidance on their crisis roles

The Group’s Competition Law Policy sets out theand responsibilities.

Group's policy of compliance with competition law,
including the Competition Ordinance (Cap 619) in
Hong Kong and the Anti-Monopoly Law and Anti-Unfair
Competition Law in the People’s Republic of China.

Code of Conduct for Contractors
The Code sets out the compliance standard expectedof suppliers and contractors when conducting business

Crisis drills are conducted every 18 to 24 months
at each major property. They aim to strengthen theawareness and skills of the crisis management teamin protecting our corporate reputation and ensuring
effective communication among departments in acrisis. Crisis management training is mandated for new
joiners, while all existing colleagues must undertake acrisis management refresher program annually.

Hang Lung Properties Limited
Sustainability Report 2023

29

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Sustainable
Transactions

Appendix

Data Privacy and Cybersecurity

All new employees with company email addresses are

Cybersecurity is one of the enterprise risks monitoredrequired to complete compulsory online cybersecurity

under our ERM framework. Overall information security
risks are reviewed and updated to the ERM Working
Group annually. The Technology and Digital Department
also provides regular updates to the Audit Committee
and the Board on information security risk management

training to increase their vigilance with regard to
cybersecurity risks, and other relevant employees mustcomplete refresher training at least once a year. In
addition to annual training, we broadcast security alerts
to employees on targeted scam or phishing email toat least twice a year.

the Group, and regularly share practical security tips

The Group manages its data protection andperspectives to raise awareness of cybersecurity.

cybersecurity management in accordance with its Data
Security Management System, and closely monitors
regulatory changes, including the “Measures for Crossborder Data Transfer Security Assessment” issued by
the Cyberspace Administration of China. Multiple internal
policies covering security control, risk managementwith our employees from their personal lives and work

To ensure that business operations are not disrupted in
the event of system failures, the Technology and Digital
Department conducts drills on an annual basis andcontinuity plans are in place to ensure disaster recovery.

and incident handling are in place to minimize cyberData Security Management Committee

threats and ensure compliance. We also annually review

Protecting important company information and personal

and/or update IT-related policies and procedures to keep

data are of utmost importance to the Group. In

ourselves up to date with the latest regulations andFebruary 2023, the Group established a Data Security

industry practices.

Management Committee, which serves as the decision-

Regular reviews on compliance and the IT security
environment are conducted on the Group’s IT system
and internal procedures. We introduced a corporatewide document sensitivity labeling system in 2022 tomaking body for the Group’s overall data security
management and governance, including data security
management, data classification and categorization,
data retention and handling of data security incidents.

assist departments in tracing activities on confidential

The committee comprises executives from businessdocuments and to identify cyber threats and data

operations, human resources, legal, customer

loss and leakage risks. We also make use of data

engagement and technology and digital. The Deputy

analytics and robotic process automation to improve

Director – Technology and Digital has been appointed

security operations and management efficiency. We

as the Data Security Officer of the Group and the Chair

implemented cloud governance across the Group,of the Committee and is responsible for overseeing thesetting up a dedicated security operation center function

day-to-day management of the Committee’s work.

for continuous threat monitoring, and strengthening
measures for remote and third-party access tocorporate data. In addition, we engaged external
security professionals to conduct external audits andto test our vigilance through phishing emails andattack simulations.

30

Wellbeing

Hang Lung Properties Limited
Sustainability Report 2023

CLIMATE
RESILIENCE
Adapt to climate change
and decarbonize ourbusiness
Relevant GRI Disclosure201 (2016), 302 (2016), 305 (2016)

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Climate Resilience
We are committed to reducing our carbon footprint in line with climate
science and reaching net zero value chain greenhouse gas (GHG)
emissions no later than 2050. We are also the first real estate company
in Hong Kong and mainland China to receive approval from the Science
Based Targets initiative (SBTi) for our near- and long-term company-wide
emissions reduction targets in line with the SBTi Net-Zero Standard (NetZero Standard). In this chapter, we share the comprehensive steps we aretaking in support of achieving our ambitious emissions reduction targets,
as well as our adaptation efforts in response to the physical risks fromclimate change.
2023 Performance Highlights

CO2
41% reduction in
Scope 1 and 2 GHG
Emissions Intensity vs2018 baseline; andadopted low carbon
concrete and steel indevelopment projects
to reduce embodied
carbon emissions

32

Hang Lung Properties Limited
Sustainability Report 2023

Completed climate
adaptation technicalanalysis for 94%
of existing properties
and 83% ofdevelopment projects

18.9% of our electricity
demand in mainland
China powered byrenewable electricity

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Our Approach
In pursuing climate resilience, we aim to manage both// The challenge of climate change
is so big. There’ll be setbacks andchallenges but persevere and don’t give
up! Otherwise, the costs are just too
much for the human race to bear. //transition risks to a low-carbon future and physical risks
from the effects of a changing climate. Material climaterelated risks are identified, managed and disclosed under
our Enterprise Risk Management Framework. We also
see climate resilience as an opportunity to demonstrate

Adriel Chan, Vice Chair and Chair ofleadership, to help contribute solutions to the climate

Sustainability Steering Committecrisis, and to strengthen relationships with like-mindedstakeholders and customers. We recognize that weneed to take a multi-dimensional approach in exploring
solutions to reduce our GHG emissions.

2030 Goal
Reduce carbon footprint in line with climate science
GHG

EV2025 Targets
Electric Vehicle (EV) Charging
Wherever feasible exceed local regulations for theprovision of parking spaces installed with EV charging
facilities across our portfolio

Electricity

GHG Intensity

40%

cumulative reduction in
GHG intensity (kgCO2e/m2)
relative to 2018

GHG (Tenants)

Renewable

Electricity
Intensity

18%

cumulative reduction inelectricity intensity (kWh/m2)
relative to 2018

climate adapt

Renewable
Energy25%

of our mainland China
portfolio electricity
demand met byrenewable energy

Climate Adaptation
GHG Intensity(Tenants)

15%

reduction in GHG intensity(kgCO2e/m2) from tenants’electricity consumption forour properties in mainland
China, relative to 2018

Complete technical analysis for climate adaptation
measures for all properties

embodied carbon
Embodied Carbon Intensity
Demonstrate best efforts to achieve at least
10% reduction in embodied carbon intensity(kgCO2e/m2) for new development project thatbegin in 2022 or later, compared to typicalpractice in an equivalent building

Hang Lung Properties Limited
Sustainability Report 2023

33

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Climate Resilience Plan 2023-2025
The Group recognizes the need to address the challenges posed by climate change and the importance of integratingclimate resilience into our business operations. As part of our commitment to achieving net zero value chain emissions
by 2050, we have formulated a Climate Resilience Plan for 2023 to 2025. The Plan identifies key aspects of ourapproach to adapt to the impacts of climate change and mitigate GHG emissions. We regularly monitor performance toensure we are on track to meet our targets, or formulate additional actions as needed.

Climate-Related Risks and Opportunities
In 2023, we continued to identify and manage climate issues relevant to our business. The table below summarizes
climate-related risks and opportunities, potential consequences for our business, and how we are managing thesepotential business impacts.

Climate-related risks

Timeframe Potential consequences

Our responses

Acute physical changes,
such as increased
severity and frequencyof extreme weather
events, e.g., typhoons,intense precipitation,
flooding, andextreme temperatures

Shortterm• Increased operating andmaintenance costs• Reduced revenue due tobusiness disruptions• Increased
insurance premiums• Increased health andsafety hazards• Undertaking detailed physical risk analyses at nine
properties across mainland China and Hong Kongto examine their exposure, sensitivity and adaptive
capacity to hazards• Installing floodgates at entrances, sump pump andproviding sandbags and water pumps to reduce
flood risk
• Undertaking regular checks and maintenance of
curtain wall systems, signage and glazed doors
to prevent any potential physical risks causedby strong winds and heavy rain (e.g., typhoons,flooding, storms)• At Center 66 (Phase 2), we implemented
precautionary measures for heavy rain and storms
by installing flood gates, a wind gate at the car ramp,
expanding the drainage capacity, and doubling thenumber of drainage pipes• Improving crisis response plans at all our properties
to align with international standards

Chronic physicalchanges, such aschanges in precipitation
and weather patterns,
mean temperature
increase, and sea
level rise

Longterm• Increased operating andmaintenance costs• Reduced revenue due tobusiness disruptions• Write-offs andearly retirement ofexisting assets• Reduced
workforce productivity• Optimizing the operating efficiency of heating,ventilation and air conditioning (HVAC) systems
to reduce electricity consumption despite
rising temperatures• Incorporating climate resilient features into thebuilding designs of our new projects. For instance, in
several new projects we are including overflow pipeson the roof and lowest floor, and a reserve floodgate
for car ramp entrances.
• Strengthening flood mitigation measures on
construction sites, e.g., MEP equipment elevatedor anchored.

Physical risks

34

Hang Lung Properties Limited
Sustainability Report 2023

Introduction

Our Sustainability
Strategy

Climate-related risks

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Timeframe Potential consequences

Our responses

More ambitious climate
policies and regulations
to support international
decarbonization efforts

Shortterm• Increased
compliance costs• Increased
operating costs• Committed to achieving greenhouse gas reductions
in line with climate science• Conducted a carbon pricing analysis in 2022
(building on our first such analysis in 2021) tounderstand our potential exposure to carbon pricerisk up to 2050
• Piloting the use of an internal carbon price to inform
decision making on selected projects, and to help
speed our preparation for external carbon pricing• Regularly monitor regulatory changes in laws,
policies and regulations to ensure compliance

Changing investor
sentiment favoring
increased climate
advocacy or divestingfrom businesses that failto implement effective
measures to manage
climate risks

Shortterm• More stringent
reporting obligations• Reduced availabilityof capital• Maintain high transparency on ESG issues to build
trust and confidence among our investors• Report against globally recognized frameworks
such as ISSB, CDP and GRI to facilitate a clear
assessment of our climate performance

Growing stakeholder
preference forcompanies andproperties that are
more prepared forclimate change

Shortterm• Reduced revenue• Property devaluation• Regularly analyze emerging industry trends• Maintain close communication with stakeholders tounderstand their concerns and expectations• Ensure understanding of our climate
resilience efforts among stakeholders throughannual reporting, investor meetings, speaking
engagements, etc

Economic or policy
incentives that support
the transition to a lowcarbon economy

Shortterm• Reduced
operating costs• Introduction of
new technologies• Access to capital• Applying for subsidy schemes in Hong Kong andmainland China to fund energy efficiency projects• Applied for a government subsidy for a net zeroenergy pilot project in Westlake 66• Raised funds to finance environmental projects
under our Sustainable Finance Framework

Higher building energy
efficiency and better
operational
management

Shortterm

Reduced operating costs• Installed smart energy meters at our Hong
Kong and mainland China properties to optimize
energy management• Conducted energy retrofits of building facilities
to enhance building energy efficiency, such as
optimization of HVAC and lighting systems in mostHong Kong and mainland China properties, withlift modernization and upgrading works in threeproperties in Hong Kong
• Leveraged smart digital data collection and analysis
platform to enhance data accuracy, reporting
effectiveness and working efficiency• Piloting an artificial intelligence technology at theheadquarters in the Standard Chartered Bank
Building to drive energy efficiency improvements;
expecting to achieve an electricity reduction of 10%
or more from HVAC consumption

Transition risks

Opportunities

Hang Lung Properties Limited
Sustainability Report 2023

35

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Climate-related risks

Timeframe Potential consequences

Our responses

On-site renewableelectricity generation
at our properties
and offsite renewableelectricity procurement

Shortterm• Reduced
electricity costs• Increased revenue• Increased
market valuation• Procured renewable energy for 100% of ourelectricity needs at Parc 66 in Jinan and Spring City
66 in Kunming• Installed on-site solar panels at eight properties
which generate over 600 MWh of renewableenergy annually

Collaboration withpeers and industry
associations to drive afaster transition to a
low-carbon economy

ShorttermPartnerships can help
build the business casefor action• Collaborating with business communities to combat
climate change. We are one of the signatoriesof the Business Environment Council's (BEC's) NetZero Charter, the first business-led carbon reduction
initiative in Hong Kong
• Supporting local and international climate-related
initiatives, such as receiving validation from SBTi’s
Net-Zero Standard for our 2030 and 2050 net zerotargets across our value chain

Growing stakeholder
preference forcompanies andproperties that are
more prepared forclimate change

Mediumterm• Attract highvalue tenants• Attract and retain talent• Higher marketability• Obtaining green building certifications for all
new projects• Demonstrating how we are preparing for andresponding to climate change, including bycompleting technical analysis for climate adaptation
measures at all properties by 2025
• Highlighting our sustainability commitments andprogress in our recruiting efforts• Collaborating with our tenants on sustainability
initiatives, including the launch of Changemakers,
our tenant sustainability partnerships program,which includes actions related to energy efficiency
and embodied carbon

Net Zero Commitments by 2050

We are the first real estate company in Hong Kong andScience-based Target and Net-Zero Standard

mainland China – and among the first globally – to have
our near- and long-term net zero targets endorsed under
SBTi’s Net-Zero Standard framework.
We will prioritize direct emissions reductions and all
residual emissions will be neutralized (if applicable) inline with SBTi criteria and limiting global temperaturerise to 1.5°C before reaching net zero emissions. The
following are our validated targets.

36

Hang Lung Properties Limited
Sustainability Report 2023

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Overall Net-Zero Target
Hang Lung Properties Limited commits
to reach net-zero greenhouse emissions
across the value chain by 2050.

Wellbeing

Sustainable
Transactions

Appendix

Group’s commitment to reducing our carbon footprint
in line with climate science and reaching net zero value
chain GHG emissions by 2050.
We discuss our climate performance in 2023 andour trajectory towards achieving net zero in the GHG
Emissions Overview section.

Near-Term Targets
Hang Lung Properties Limited commits
to reduce absolute scope 1 and 2 GHG
emissions 46.6% by 2030 from a 2019base year. Hang Lung Properties Limited
also commits to reduce absolute scope
3 GHG emissions from purchased goods
and services and downstream leased assets
25% by 2030 from a 2020 base year.

Long-Term Targets
Hang Lung Properties Limited commits to
reduce absolute scope 1 and 2 emissions
99.6% by 2050 from a 2019 base year. Hang
Lung Properties Limited also commits to
reduce absolute scope 3 emissions 99.6%
by 2050 from a 2020 base year.

Climate Adaptation
Status2025 Target

On track

Complete technical analysis for climate
adaptation measures for all properties
2023 KPI

Completed

Conduct technical analysis for climate
adaptation for another four properties inmainland China, and implement adaptation
measures in at least two properties inmainland China or Hong Kong

In 2023, extreme weather events in mainland China andHong Kong, including the torrential rain in Hebei Province
and the once-in-500-year heavy rain in Hong Kong, havereminded people about risks from climate change. As
the impacts of climate change are becoming more
pronounced, our assets are increasingly exposed to

As SBTi is developing the Buildings Science-Based
Target-Setting Guidance and Tool, during the public
consultation period, we shared our views on the draft.
We will closely monitor the development of the guidance
and update our targets and approach to achieving thetargets as and when necessary.

climate risks such as extreme weather events, changes
in precipitation patterns and sea level rise. These risks
could pose threats to the safety and wellbeing of ourtenants and customers, and impact the asset value ofour properties.
We recognize the importance of preparing for potential
risks associated with climate change events. We have

Net-Zero Carbon Operations Commitment

therefore adopted a proactive approach to climate

We are the first real estate developer in Hong Kong,

adaptation. Since 2021, we have conducted technicaland among the first in Asia, to commit to the ULI

analyses of our properties to assess the climate risks

Greenprint’s net zero carbon operations goal. Launched

to which our properties are exposed and to planby the Urban Land Institute’s Greenprint Center foradaptation measures. We have a target to complete

Building Performance, the goal is in line with thetechnical analysis for climate adaptation measures for

Paris Agreement and the Intergovernmental Panel on

all properties by 2025. To date we have completed

Climate Change’s (IPCC) recommendation to keep global

analyses for 25 properties (94% of total floor area forwarming below 1.5°C. This initiative further affirms theexisting properties; 83% for development projects).

Hang Lung Properties Limited
Sustainability Report 2023

37

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Adaptation Roadmap to 2025
Technical analysis:2022• 4 properties in mainland China

Adaptation measures apply to:• At least 2 properties

Technical analysis:• 11 properties in Hong Kong
• 5 properties in mainland
China

2023

Technical analysis:• 3 properties in mainland China

Adaptation measures apply to:Complete all feasible
identified adaptation
enhancements

2025• At least 4 properties

In 2023, we conducted detailed climate exposure

We expanded our technical analysis in 2023 toassessments and sensitivity and adaptive capacity

include additional seven properties in mainland China:

analyses for seven properties in the mainland and two

Grand Gateway 66, Palace 66, Forum 66, Olympia 66,

properties in Hong Kong. We also welcome opportunities

Parc 66, Spring City 66, and Heartland 66, and two

to collaborate with other organizations to strengthen

properties in Hong Kong: 228 Electric Road and Fashion

climate resilience in the region through knowledge

Walk. For each property, we examined exposure andexchange and partnerships. In 2023, the Group was

adaptive capacity.

invited to participate in a discussion related to climate
stress testing organized by the Hong Kong Universityof Science and Technology, along with other corporates,
scientists, and government officials.

Technical Analysis
In our climate adaptation technical analysis, we focus
not only on potential changes in the surrounding
environment but also how adaptive our properties
are. The in-depth climate hazard and vulnerability
assessment includes two levels of analyses: an exposure
assessment, which assesses the climate exposure levelof each property; and an adaptive capacity analysis
which evaluates the climate sensitivity and adaptive
capacity of each property. Our climate projections are

To enhance the comprehensiveness of our assessment,
we expanded the hazards under consideration. In 2022,
our assessment focused on flooding, heat wave, typhoonand extreme rain, and landslides. In 2023, we also
included earthquake - a geophysical risk - for seven
Mainland properties (a magnitude 5.5 earthquake struck
Shandong in August 2023). And we included cold spells
as an additional climate-related risk factor for our
properties in Shenyang.This decision was based on therecognition that Shenyang is located in a very cold zone,
as defined by the thermal design code for civil buildings
in mainland China, and some indications that climate
warming will destabilize the jet stream, causing Arctic air
reaching more southern latitudes.

scenario-based, including future emissions scenarios of

The table below provides a summary of residual risks

SSP2-4.5 and SSP5-8.5. The projections cover various

for each property – after consideration of both exposure

time frames including mid-century (2041-2070) and end

and adaptive capacity.

of century (2071-2100) with our focus on potential
impacts between now and mid-century.

38

2024

Hang Lung Properties Limited
Sustainability Report 2023

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Summary Table of Residual Climate Risks1,2
Property Name

Flooding

Heat Wave

Cold Spell

Typhoon &Extreme Rain

Earthquake

Landslide

9 Wing Hong Street

Low

Medium

N/A

High

N/A

Low

Amoy PlazaHigh

MediumN/A

MediumN/A

Low

Burnside Villa

Low

Low

N/A

MediumN/A

MediumGala Place

MediumMediumN/A

MediumN/A

Low

Hang Lung Centre

High

Low

N/A

MediumN/A

Low

Hollywood Plaza

Medium

Low

N/A

High

N/A

Low

Kornhill Plaza

MediumLow

N/A

MediumN/A

Low

Peak Galleria

MediumLow

N/A

MediumN/A

Low

Standard Chartered
Bank Building

High

Low

N/A

High

N/A

Low

The Summit

Low

Low

N/A

MediumN/A

MediumShouson Hill
Road Redevelopment

MediumLow

N/A

MediumN/A

High

228 Electric Road*

MediumLow

N/A

MediumN/A

Not
assessedHigh

MediumN/A

MediumN/A

Not
assessed

MediumMediumN/A

MediumNot assessed

N/ARiverside 66, Tianjin

High

Low

N/A

MediumNot assessed

N/A

Plaza 66, Shanghai

MediumMediumN/A

MediumNot assessed

N/A

High

MediumN/A

MediumLow

N/A

Forum 66, Shenyang*

MediumLow

MediumLow

MediumN/A

Palace 66, Shenyang*

MediumLow

MediumLow

Medium

N/A

High

Low

N/A

Low

Low

N/A

MediumMediumN/A

Low

MediumN/A

Spring City 66, Kunming*

High

Low

N/A

N/A

MediumN/AHeartland 66, Wuhan*

Medium

Low

N/A

N/A

Low

N/A

Center 66 Phase 2, Wuxi

MediumMediumN/A

MediumNot assessed

N/A

Westlake 66, Hangzhou

MediumLow

N/A

MediumNot assessed

N/AHong Kong

Fashion Walk*
Mainland China
Center 66, Wuxi

Grand Gateway 66, Shanghai*Parc 66, Jinan*
Olympia 66, Dalian*1

Some of our properties are working on climate adaptation measures and the risk levels may be revised as the adaptation actions develop further.

2* Refers to the properties assessed in 2023.
Hang Lung Properties Limited
Sustainability Report 2023

39

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Adaptation Measures
Building upon the findings of the technical analysis we
conducted in 2022, in 2023 we worked closely with
11 Hong Kong properties and five Mainland properties
to review the climate adaptation recommendations
we formulated together with our consultant. This
collaborative effort enabled us to develop concrete
action plans tailored to each specific site. By taking into
account the unique characteristics and challenges facedby each property, we were able to identify and prioritize
the necessary measures for climate adaptation. We
have examined all recommendations and are planningto implement feasible measures to enhance our adaptive
capacity, such as equipment retrofits, installation of flood
detection and warning systems, the provision of floodgates at potential water entry points, and the installationof flood sensors, water collection pans and water
discharge routes for major plant rooms. In 2024, we will
similarly review recommendations for the nine properties
that completed assessments in 2023, and take proactive
steps to enhance the resilience of our properties.

40

Hang Lung Properties Limited
Sustainability Report 2023

Wellbeing

Sustainable
Transactions

AppendixIntroduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

C A S E

Wellbeing

Sustainable
Transactions

Appendix

S T U D Y

Climate Adaptation Deep DivesA

fter the completion of the climate hazard andvulnerability assessment for five Mainland
properties and 11 Hong Kong properties in2022-2023, we selected two properties, Riverside
66 in Tianjin and Standard Chartered Bank Buildingin Hong Kong, to conduct deep dive analyses to
identify property-specific adaptation opportunities.
Through site walk-throughs, as-built drawing
reviews, questionnaires, management interviews
and data collection by consultants on such issues as
flood defense, building drainage and HVAC systems,

Standard Chartered Bank Building, Hong Kong
Standard Chartered Bank Building is highly exposed
to typhoon and flooding. It is a high-rise building
and located near the coast of the northern side ofHong Kong Island where the windborne debris risk ishigh. There was one window glass damage incident
reported after the typhoon Mangkhut hit Hong Kongin 2018. There are also some critical plant rooms
located below ground level, with increased riskof flooding.

etc., we have formulated a climate adaptation andAfter completing a thorough on-site analysis, ourretrofitting plan that is actionable and specific for

consultants proposed 33 enhancement measures

each property.

for flooding, typhoon and heat wave. After reviewing

Riverside 66, Tianjin

and prioritizing the recommendations, we have
implemented 17 enhancement measures in 2023

Riverside 66 is highly exposed to flooding andand will implement another 14 measures in 2024.

has been affected by flooding in recent years.

These enhancement works range from replacing

Following the flooding and typhoon incidents inthe window locking system, to strengthening the2016 and 2018, Riverside 66 implemented various

sturdiness of windows, to engaging a façade

adaptation measures, such as the installation of acontractor to investigate our façade systemhigh power drain pump and auxiliary facilities and athoroughly and repair the defects where appropriate.

water retaining plate, and work with the government

The remaining two enhancement recommendations

to widen the water pipes around the property.

require high investment and significant renovation

In subsequent years, even during heavy rainfall,works, hence we are not considering them atthe property was able to control the increased

this moment.

water flows.

In addition to our work strengthening resilience inDuring our deep dive analysis, the site inspection

landlord areas, we also work closely with our tenantsconfirmed that Riverside 66 has good existing

to reduce typhoon and flooding impacts. Sandbags

measures in place. Even so, 26 additional works

will be provided to tenants when requested, andwere proposed for further enhancement of climate

we are encouraging our tenants who are locatedadaptation measures at Riverside 66, including but

underground or on the ground floor to install flood

not limited to the installation of water collection

gates in their next round of renovation.

pans, flood sensors and floor drains in alltransformer and low-voltage distribution rooms, andinstallation of flood barrier and defenses at the fireservice pump room.

Hang Lung Properties Limited
Sustainability Report 2023

41

Introduction

Our Sustainability
Strategy

Climate Resilience

Climate Mitigation

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

In the following sections, we provide details of ourefforts to reduce emissions in all these areas.

GHG Emissions Overview
Scope 1, 2 and 3 Emissions Overview

Scope 1 and 2 Emissions Overview

The graph below shows annual trends in total GHG

Statusemissions for all three scopes. In 2023, scope 3
emissions contributed the most, 83.2% to our overall
emissions, followed by scope 2 (16.4%) and scope 1(0.4%) emissions.

2025 Target

On track

40% cumulative reduction in GHG intensity(kg CO2e/m2) relative to 20182023 KPI

Completed

Meet or exceed 30% cumulative reduction in
GHG intensity (kgCO2e/m2) relative to 2018.

Total Carbon Emissions (2021-2023)
700,000

Tonne CO2e

600,000
500,000

In 2023, the Group achieved a 41.33% GHG emissions

400,000

intensity reduction (market-based) compared to our2018 baseline. In the 41.30% reduction, 10.6% came

300,000

from Hong Kong properties and 30.7% was from

200,000

mainland China properties. Further details on the factors

100,000

contributing to the 41.30% reduction are as follows:

02021
Scope 1

2022
Scope 22023
Scope 3• 13.70% from energy efficiency and onsite
renewable energy,• 18.06% from grid decarbonization and Spring City
66 and Parc 66’s power purchase agreements

Breakdown of Carbon Emissions by Scopein 2023(PPAs) contribution,• 9.43% from GHG reductions associated with heating
demand, and• 0.1% from Scope 1 reductions associated withrefrigerant and diesel generator emissions.

42

0.4%

Scope 1

16.4%

Scope 2

83.2%

Scope 3

Hang Lung Properties Limited
Sustainability Report 2023

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

GHG Emission Intensity (tCO2e/m2) Reduction Trajectory from 2018 to 2030
0.07

20%
GHG Emissions Int ensity (tCO 2e/m2)

0.06

25%

30%

ActualReduction
TargetReduction

35%

0.05

40%

ActualTarget23.38%
28.47%
38.28%
41.30%

0.04
0.03

70%

0.02
0.01
0.00

2018

2019

2020

2021

2022

2023

2024

Scope 3 Emissions Overview

On track

2027

2028

2029

2030

calculation are:
Methodology improvement – Our Scope 3 inventory
calculation model is a work in progress, and we regularly

Demonstrate best efforts to achieve at least
10% reduction in embodied carbon intensity(kg CO2e/m2) for new development projectthat begin in 2022 or later, compared totypical practice in an equivalent building2023 KPI

2026

The key 2023 updates in our Scope 3 inventory
Status2025 Target

2025

review it to see how we can make improvements.
In 2023, apart from the 10 applicable categories wedisclosed in 2022, we identified two new categories:
category 8 – upstream leased assets and category 11
Delay

For the Shouson Hill Road project in Hong
Kong, demonstrate best efforts to achieve
at least 10% reduction in embodied carbon
intensity (kg CO2e/m2) in accordance withthe methodology of our 2025 embodied
carbon target.

– use of sold products in accounting boundary fromthis year. The addition of these categories improves ourdata coverage and measurement accuracy. With these
additions, there are a total of 12 applicable categories
for Hang Lung Scope 3 inventory (out of 15 possible
categories). Please refer to Appendix 5 – Scope 3
Emissions Data Reporting Methodology for details.
Data transparency – The selection of emission factors

Scope 3 emissions (i.e., indirect emissions that occur
along the value chain) present significant challenges
in the real estate industry, including challenges in theavailability, categorization and accuracy of data. In 2023,
the Group revisited applicable emissions categories

is critical for Scope 3 inventory calculation. To reflect
actual emissions along the value chain, we have now
considered lifecycle emissions factors which include
upstream emissions for category 3 – fuel and energy
related emissions, category 8 – upstream leased assets

and identified ‘blind spots’ to improve current Scope 3

and category 13 – downstream leased assets.

emissions disclosure based on SBTi and the Greenhouse

Closer examination of tenants’ embodied carbon

Gas (“GHG”) Protocol.

emissions – Following the GHG Protocol methodology,
emissions from tenants’ fit-outs and renovations falloutside our reporting boundary for scopes of emissions.
But experts like GIGA (RESET), Arup and the Rocky
Mountain Institute (RMI) have found that – over theHang Lung Properties Limited
Sustainability Report 2023

43

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Breakdown of Scope 3 Emissions by Category in 2023
Purchased goods & services (Cat 1)

0.70%

Capital goods (Cat 2)

5.11%

Fuel and energy related activities (Cat 3)

1.37%

Upstream transportation and distribution (Cat 4)

1.65%

Waste generated in operations (Cat 5)

0.23%

Business travel (Cat 6)

0.20%

Employee commuting (Cat 7)

0.02%

Upstream leased assets (Cat 8)

19.13%

Downstream leased assets (Cat 13)

0.01%

Investments (Cat 15)

life of a building – embodied carbon from interiors

Altogether, our 2023 Scope 3 emissions increased about

can be equivalent to or even greater than embodied

88% compared with 2022 Scope 3 emissions. Key

carbon from the building’s structure and substructure.

reasons for the increase are as follows:

Recognizing the magnitude of such emissions, we areworking with LVMH Group and other leading tenants tolook more closely at this neglected source of emissions
in real estate. Fit-outs and renovations represent ahuge opportunity for reduction of emissions in the built
environment, and we plan to develop better baseline
information from which we can work with tenants to
identify reduction opportunities.
The breakdown of Scope 3 emissions in 2023 followed
the same pattern as our emissions between 2020 and
2022. Emissions from Category 1 - purchased goods
and services (including products, i.e., embodied carbon
from building materials) and Category 13 - downstream
leased assets (i.e. tenant’s electricity consumption)
remain our two most significant categories of carbon
emissions. Taken together, they contributed more than
90% of our total Scope 3 emissions.

44

71.58%

Hang Lung Properties Limited
Sustainability Report 2023

• Our development projects moved into stages of
the construction cycle that have more embodied
carbon emissions, so our emissions from Category
1, purchased goods & services, increased by 130%
relative to 2022. For example, our development
projects Westlake 66 and Center 66 Phase 2
each started the construction of superstructure andsubstructure in the reporting year
• Adoption of lifecycle emissions factors for energy
related Scope 3 emissions• Absolute emissions from Category 13 – downstream
leased assets (our tenants’ emissions) and othercategories of Scope 3 emissions increased slightly
in 2023.

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Climate Mitigation Initiatives

In addition to our PPAs for existing properties in

Scope 1: Refrigerants

mainland China, our development projects in KunmingDue to the high global warming potential (GWP) ofconventional refrigerant gases, the use of refrigerants
contributes a significant proportion of global GHG
emissions. When selecting refrigerants, we consider
their global warming potential as well as their ozone
depletion potential. At the Grand Hyatt Kunming Hotel,
we adopted an energy-efficient and environmentallyfriendly refrigerant (R-514A) in the chiller units. Apartfrom considering the use of low GWP refrigerants
monthly air-conditioning maintenance. An emergency
preparedness plan is also in place to handle refrigerantleakage incidents.

Management section for details of our renewable energy
use during construction.
We also adopt renewable energy design concepts
into new projects. Westlake 66 in Hangzhou has also
installed a closed-loop ground source heat pump system
for the hotel building, and we are designing a ground
Center 66 in Wuxi.

Scope 3: Embodied Carbon
StatusScope 2: Renewable Energy

2025 Target
StatusOn track

25% of our mainland China portfolio
electricity demand met by renewable energy
2023 KPI

in 2023. Please refer to the Project Environmental

source heat pump system for a historical building at

in our projects, we also check for leaks during2025 Target

and Hangzhou also procured 100% renewable electricity

Completed

18% of our mainland China portfolio
electricity demand from renewable energy

In addition to looking for ways to optimize energy
efficiency, we also work to reduce carbon emissions byincreasing our use of renewable energy.

On track

Demonstrate best efforts to achieve at least
10% reduction in embodied carbon intensity(kg CO2e/m2) for new development projectthat begin in 2022 or later, compared totypical practice in an equivalent building2023 KPI

Completed

Explore at least two innovative solutions to
reduce embodied carbon in concrete, steel
and curtain walls.

In 2023, our development projects in mainland China
and Hong Kong made efforts to reduce embodied
carbon emissions by adopting lowser carbon building

The Group has installed on-site solar panels at eightmaterials. Even so, our total embodied carbon emissions

properties in mainland China which generate over 635

from development projects in 2023 were 534,048 tCO2e,

MWh of renewable energy annually. In Hong Kong, we

representing about a 147% increase compared to ourhave also installed solar panels on the rooftop of Amoy

development project emissions in 2022. As mentioned

Plaza and participated in the Feed-in-Tariff scheme,

earlier, our development projects such as Westlake 66

generating 18,000 kWh of energy annually.

in Hangzhou and Center 66 Phase 2 in Wuxi are in a

Regarding offsite renewable energy, we have been
actively seeking opportunities to purchase offsite
renewable energy in mainland China. Both Spring City

more material-intensive phase of the construction cycle,
which explains the significant increase in embodied
carbon emissions.

66 in Kunming and Parc 66 in Jinan have PPAs inplace. In each case, the PPA covers the property’s total
annual electricity consumption for both landlord andtenant operations. The Spring City 66 PPA has been inplace since December 1, 2021, and Parc 66 began its
procurement of renewable energy on January 1, 2023.

Hang Lung Properties Limited
Sustainability Report 2023

45

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Building Material's Embodied Carbon Emissions
in 2023

Wellbeing

Sustainable
Transactions

Appendix

The following highlights some of our decarbonization
initiatives related to our scope 3 emissions.
Scope 3: Embodied Carbon in Projects
Adopt lower carbon concrete – We have a twoyear strategic collaboration with a startup company,
CLEANCO2, which applies carbon capture, utilizationand storage (CCUS) technology to produce low carbon
recycled concrete aggregate (RCA) and carbon storage
concrete bricks. We have successfully used low carbon
bricks for the secondary partition walls of the basementof the Westlake 66 project in Hangzhou. These bricks
are made using cement, fly ash and other solid waste
combined with mineralized carbon dioxide through14.28%

Concrete39.63%

Steel

10.65%

Cement and concrete bricks

0.13%

Glass

0.68%

Timberof around 17,000 m2, equal to about 1% of the project’s

26.81%

Aluminum

total 2023 embodied carbon emissions. We are the first

0.09%

Gypsumcommercial development project in mainland China and7.73%

Others

CLEANCO2’s process. The embodied carbon emissionsof these low carbon concrete bricks are calculated as
87.5% lower than conventional shale bricks.
The total number of bricks used can cover a wall area

Hong Kong to adopt low carbon concrete bricks with
CCUS technology.
Adopt lower carbon steel – Electric arc furnace (EAF)Our 2023 breakdown of embodied carbon emissions issimilar to the breakdown in 2022. Steel, concrete andaluminum remain the top three sources of embodied
carbon emissions. In 2023, we worked with CLEANCO2
to decarbonize concrete, and we started to work with
SteelZero to identify opportunities to decarbonize steel.
We also plan to work with other partners on aluminum
decarbonization in 2024.

steel is more energy efficient and has less embodied
carbon during the production process compared to
traditional blast furnace-basic oxygen furnace (BF-BOF)
steel. Our Center 66 Phase 2 development in Wuxi has
adopted EAF rebar since 2021, procured through main
contractor from Shagang Group (沙鋼集團) and Jiangsu
Yonggang Group (江蘇永鋼集團), the largest EAF steel
suppliers in Jiangsu Province. To date EAF steel has
amounted to about 6.88% of all rebar procured in ourCenter 66 project. In Hong Kong, our 228 Electric Road
used about 15.3% EAF-produced rebar, and The Aperture
project has also adopted 15.5% EAF rebar, resulting inlower embodied carbon emissions than would otherwise
be the case.
In 2023, we were proud to join SteelZero, a global
initiative that brings together leading organizations to
speed up the transition to a net zero steel industry. In
becoming a SteelZero member, we commit to “transit tousing 50% low emission steel by 2030, setting a clear
pathway to using 100% net zero steel by 2050.”

46

Hang Lung Properties Limited
Sustainability Report 2023

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

AppendixInnovative and circular solutions – Apart from adopting

Electricity consumed by tenants is the second largest

market-available low carbon materials, we are also

source of our Scope 3 emissions. As we have less

exploring innovative solutions to reduce embodied

operational control over the tenant-controlled areas ofcarbon in construction with our partners, suppliers

our properties, this area is a challenge in our emissions

and tenants.

reduction efforts. Nevertheless, we know that many ofFirst, we are reusing waste concrete from our Westlake
66 development project in Hangzhou. The waste
concrete will be crushed into aggregate and used in
low carbon RCA through a carbon dioxide mineralization
process. A life cycle assessment has found that the
low carbon RCA has significant potential to reduce

our tenants are like-minded about the importance ofenergy efficiency and conservation, and we are working
with tenants to reduce unnecessary lighting (see below).
We are also now examining technology options toimprove real-time energy measurement together with
our tenants.

emissions compared to normal aggregate when used

LightWise energy-saving program – We are working

as raw material for concrete. Together with CLEANCO2

with tenants to reduce energy consumption by turning

we have completed a small-scale pilot project with theoff unnecessary operation lights, store windows andlow carbon RCA in May 2023 and are working on a

façade lights earlier during non-operational hours. We

medium scale project near Hangzhou, with 100 tonnes

have implemented the program, called LIghtWise, atof waste concrete.

all of Hang Lung’s properties across eight cities on

Second, through our sustainability collaboration with
LVMH Group, we identified six use cases to recycle threemajor types of renovation waste in order to improve
circularity and reduce embodied carbon emissions

the Mainland since September 2023, and invited ourMainland tenants to join the program in December 2023.
The Group will also introduce a similar program in Hong
Kong in 2024.

in the fit-out process. For details, please refer to

Use of renewable energy – As mentioned earlier, inConstruction Waste Initiatives section in the Resource

addition to powering our landlord operations, we supply

Management chapter.

100% renewable energy to all our tenants at Spring City
66 in Kunming and Parc 66 in Jinan. In 2024, we will

Scope 3: Tenant Electricity

expand the provision of renewable energy to tenants at
Status2025 Target
15% reduction in GHG intensity (kg CO2e/m2)
from tenants’ electricity consumption for our
properties in mainland China, relative to 20182023 KPIWork with a major tenant to implementa plan to reduce GHG intensity fromthe tenant’s electricity consumption acrossmainland China

Ahead
of Schedule

additional locations.
Energy saving award – As part of our collaboration
between Hang Lung and LVMH Group, we haveintroduced an energy saving award as a mechanism
for sharing and exchanging ideas to improve the energy

Completedefficiency of our respective groups. Three awards were
set up to recognize the properties of Hang Lung andthe stores of LVMH that have demonstrated strong
performance in energy efficiency and improvements
compared to the previous year, as well as to encourage
innovative thinking and the development of new ideas toachieve energy efficiency. We will announce the award
winners at our Real Estate and Climate Forum in 2024.

Hang Lung Properties Limited
Sustainability Report 2023

47

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Scope 3: Supply Chain
Collaboration for reduction – Scope 3 emissions
reduction is all about engaging with our key
stakeholders, both upstream and downstream. In
addition to our tenant collaboration, we have developed asustainable procurement and supplier engagement planfor 2024-2025 in order to advance decarbonization andother sustainability priorities with suppliers.

EV Charging
Status2025 Target

On track

Wherever feasible exceed local regulations forthe provision of parking spaces installed withEV charging facilities across our portfolio
2023 KPI

Carbon Pricing Analysis
Completed

Improve our EV charging plan and conduct
at least two pilots to expand EV charging
spaces, one in Hong Kong and one
on Mainland

Carbon pricing could have a significant impact on thereal estate sector over time. From 2021, we have beenmonitoring the impact of carbon pricing mechanismsthat may affect the company. In 2021 we completed
our first carbon pricing analysis, looking ahead to 2030.
In 2022 and 2023 we subsequently conducted anenhanced scenario analysis that extended our analysis

In 2022, we studied regulatory trends for EVs anddeveloped a plan to expand EV parking space availability
at our Mainland and Hong Kong properties. To support
the development of green transport and encourage theuse of electric vehicles, we are increasing the number of
EV charging facilities in our properties. In 2023, 20 EV
charging facilities were installed in the carpark of Centerfrom 2030 to 2050, and we also took into account
China-specific policies and plans such as its Emissions
Trading Scheme (ETS). We will update the carbon
pricing scenario analysis from time to time to reflect
further changes in the China ETS as it expands its
sector coverage.
In our scenario analysis, carbon prices across six

66, Wuxi. In Hong Kong, we will introduce four new EV

scenarios developed by the Network for Greening thecharging facilities at the Canton Road Carpark and fourFinancial System (NGFS)– namely Net Zero 2050,

EV charging stations at Kornhill Plaza. The Group will

Divergent Net Zero, Below 2°C, Delayed Transition,

continue to evaluate its provision of EV charging facilities

Nationally Determined Contributions (NDC), and Current

and install new charging stations ahead of regulatory

Policies – were applied to our emissions under both

requirement changes.

Business-as-Usual (BAU) and Science-Based Target(SBT) pathways to derive expected carbon costs in 2030
and 2050. Our BAU carbon costs across the four mostambitious NGFS scenarios fall between HKD 63 millionand HKD 1 billion in 2030, and HKD 969 million and
HKD 14 billion in 2050. If we fully achieve our SBTs, we
could reduce potential carbon costs on average by 47%
compared to BAU in 2030, and by 95% compared to BAU
in 2050. For more details of our scenario analysis, pleaserefer to our Sustainability Report 2022.

48

Hang Lung Properties Limited
Sustainability Report 2023

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Internal Carbon Pricing Pilot>> Next Steps >>As a tool for risk management and strategic planning,

We understand our major sources of greenhouse gas

we believe internal carbon pricing can help enable ourtransition towards a low carbon economy and speed
our preparation for future climate-related policies andregulations. Building on the results of our scenario
analysis, we undertook a stakeholder engagement
process in 2023 to formulate an appropriate approachand carbon price levels for the Group. We have decided
to pilot shadow pricing as a means of evaluating
the sensitivity of investment decisions to the cost of
potential carbon emissions. We also conducted training
to introduce to our colleagues to the ICP mechanism.
Our shadow price is an escalating price over time.
The price up to 2030 reflects stakeholder views about
the potential evolution of carbon pricing in China, andemissions, we have established and validated ourscience-based targets for reducing such emissions, andwe are making progress in some areas. As an important
next step, we will be developing and publishing our first
Net Zero Roadmap. This report will be a transparent
discussion of the challenges and opportunities weforesee in our efforts to reduce emissions for all three
scopes of emissions in the decades ahead. We will offer
more detailed assumptions and sensitivity analyses to2030, and discuss at a higher level the key variables that
could further impact the pace of our net zero progress
between 2030 and 2050. We will publish the Roadmap
by the fourth quarter of 2024.

increases only modestly each year. After 2030, the pricetakes reference from internationally recognized climate
scenarios, and increases more significantly.
In late 2023, the Group started incorporating ICP into thedecision-making process of a small number of selected
projects related to energy efficiency and emission
reduction. In 2024, we will continue to explore theapplication of ICP to facilitate internal decision-making
for low-carbon investments.

Hang Lung Properties Limited
Sustainability Report 2023

49

RESOURCE
MANAGEMENT
Optimize use and managementof natural resources andpromote circularity
Relevant GRI Disclosure302 (2016), 303 (2018), 304 (2016), 306 (2020)

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Resource Management
We share finite resources with our community and planet. Like the rest of
the world, our consumption behavior has been linear for the past decades.
We recognize the need to pursue a more circular approach in the design,
construction, operation and disassembly of our buildings and our cities.
While the transition to a circular built environment and economy will taketime and require collaboration with like-minded stakeholders, we havedeveloped a Resource Management Plan with specific measures to the endof 2025, as well as initiatives to help prepare us for 2030 and beyond. Our
business depends on biodiversity, clean air and water, and we need to be
vigilant about ecosystem threats including habitat loss, invasive species
and pollution to the environment. This chapter will discuss initiatives for the
management of our resources during project development and operations,and how we achieve selected annual ESG KPIs through innovative solutions
and partnerships with suppliers.
2023 Performance Highlights

14% reduction inelectricity intensity in
2023 as compared
to 2018

8% reduction in water
intensity in 2023 ascompared to 2018

66% waste diversion rate
in 2023

Hang Lung Properties Limited
Sustainability Report 2023

51

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Introduction
Major resource management topics of relevance to our business include energy consumption, water, waste, natureand biodiversity. We use energy primarily for heating and cooling, major plants and equipment, and lighting. We mainly
use water in our energy and fire services systems, in landscaping, and to provide hygiene facilities for our workers,
customers and tenants. We generate waste and wastewater from our operations and construction sites. Lastly, we are
increasingly mindful about how our footprint in the built environment impacts on nature and biodiversity.
While much remains to be done, we are making efforts to reduce resource consumption, increase recycling, and protect
biodiversity. From a longer-term perspective, we aim to work with like-minded stakeholders to help accelerate theevolution to a regenerative, circular economy.
Our commitment to Resource Management also includes ensuring that our new buildings are certified by leading green
building standards. The complete list of sustainable building certifications obtained by our properties is disclosed inAppendix 4 – List of Sustainable Building Certificates.

Resource Management Plan 2023-2025
In 2022 and 2023, we reviewed historical data, researched current and future trends, and conducted feasibility studies
on various measures. Based on our analyses, we have identified focus areas for energy, water, waste and biodiversity for2024 and 2025.

2030 Goal
Accelerate the transition to a circular economy by minimizing resource
consumption and maximizing recycling

2025 Targets
Construction Waste

60%

of construction waste
diverted from landfill for new projects
starting in 2022 with maximized recycling

Operational Water Use

10%

reduction in water intensity(m3/m2/year) relative to 2018

Construction
Material Use

Operational Waste

70%

of operational waste
diverted from landfill

52

Hang Lung Properties Limited
Sustainability Report 2023

Demonstrate best efforts
to maximize the use ofrecycled, reused andbio-based materials in
all new projects

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Energy Management
As a building operator with a goal of achieving net

Wellbeing

Sustainable
Transactions

Appendix

Energy Consumption and Energy Intensity
Trend (2019-2023)

400

1,600,000

zero emissions by 2050, energy management plays a

1,500,000

390

critical role in our sustainability efforts. Effective energy
management enables us to reduce our reliance onmanagement is closely linked to operational efficiency
and cost savings. By implementing energy-efficienttechnologies, upgrading equipment, and promoting
energy-conscious behaviors, we can optimize the energy
efficiency of our building systems, reduce energy

1,000,000

360
350

800,000

500,000

330
325

400,000

Energy Intensity (MJ/m2)

mitigate the effects of climate change. Moreover, energy

Energy Consumption (GJ)

fossil fuels, minimize greenhouse gas emissions, and375

1,200,000

consumption, and achieve financial savings.
0

Our Approach
Electricity is the major type of energy consumed in
our portfolio (83% of our total energy consumption in2023), which mainly comprises commercial and officebuildings. Like other commercial buildings in urban

2019
2020
2021
2022
2023
Total natural gas (direct energy))
Total liquid fuels (direct energy)
Total electricity consumed (indirect energy)
Purchased hot water (indirect energy)
Purchased steam (indirect energy)
Energy Intensity (MJ per m2)

300

areas, we mainly use electricity to power our HVAC
systems, lighting, and elevator systems, among otheruses. Some of our Mainland properties also obtain hot

Please find below the energy consumption by energy

water and steam from municipal heating supplies or gas-

type in 2023.

fired hot water boilers in winter.
We closely monitor our energy use to ensure we
optimize energy efficiency and performance. In 2023,
the Group’s total energy consumption was 1,339,369

Breakdown of Energy Consumption by Energy
Type in 2023

GJ and the overall energy intensity increased slightly by
0.5% compared to 2022, mainly due to the increase inelectricity consumption.

2.5%

Total natural gas (direct energy)

0.2%

Total liquid fuels (direct energy)

83.1%

Total electricity consumed (indirect​energy)

11.8%

Purchased hot water (indirect energy)

2.4%

Purchased steam (indirect energy)

Hang Lung Properties Limited
Sustainability Report 2023

53

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

We have established a 2025 target and annual ESG

Our electricity intensity was 13.70% below our 2018

KPIs to closely monitor our electricity use and tobaseline in 2023 – falling short of our target reduction

facilitate its reduction. Please find more details in thepercentage of 16%, mainly as the result of two factors.

following section.

First, in the midst of the uncertainties of the COVID-19
pandemic in 2021 and 2022, the Group decided to defer

Electricity Use Data Review

some of our planned capital expenditure investments
Status2025 Target

On track

supporting energy efficiency. Second, as the world
recovered from COVID-19 and returned to normal
in 2023, our electricity consumption rebounded ascommercial activities picked up again. We are planning

18% cumulative reduction in electricity
intensity (kWh/m2) relative to 2018some energy efficiency measures in 2024 and 2025,

2023 KPI

Delay

Meet or exceed 16% cumulative reduction inelectricity intensity (kWh/m2) relative to 2018.

and are assessing the potential to introduce additional
measures, to support progress towards our 2025
electricity intensity reduction target and our emerging
plans for 2026-2030.

Electricity Intensity Reduction Trajectory for 2018 - 20251
90.00

Electricity Int ensity (kWh/m 2)

82.23

80.79

79.76

80.00

8%
75.65

73.40
71.08

70.00

17%

18%

10.74%

68.78

68.25
69.07

67.43

16.35%

50.00

54

13.70%
70.97

16%

60.00

1

ActualReduction
TargetReduction

3%

2018

2019

2020

2021

2022

Includes consumption of purchased renewable and non-renewable electricity.

Hang Lung Properties Limited
Sustainability Report 2023

2023

2024

2025

ActualElectricity
Intensity
TargetElectricity
Intensity

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Energy Saving Initiatives

Artificial Intelligence Pilots

Energy Data Management System

The Group is piloting an artificial intelligence technology

To improve energy efficiency and identify potential

at our headquarters in Hong Kong. The Neuron energy

savings, it is necessary to understand where and how
energy is being used. In 2021 and 2022, we installed
sub-meters to monitor the energy consumption of major

system was installed at Standard Chartered Bank
Building in May 2023 and the system became fully
operational in September 2023. The system consists

building systems and equipment.

of a rule engine, chiller plant optimization and an IoT

We also have in place an energy management platform

temperature, equipment operation status, energy use

for centralized data storage, monitoring, and comparisonand optimization information will be displayed in variousof our operating projects. The platform makes ourformats on a cloud-based dashboard. In addition, theenergy targets and performance visible at all levels ofsystem is connected to all equipment in the chiller

our organization, enabling us to make informed planningplant through the existing building management systemdecisions and take effective action to manage our(BMS), including six chiller pumps, six condensate

energy use.

pumps, five chillers and seven cooling towers. The

Retro-Commissioning (RCx)Hub. Metrics including coefficient of performance (COP),

COP has improved from 5% to 10% following theadvanced operational recommendations of the AI

Retro-commissioning involves assessing the energy

technology. Training was provided to operational staff

performance of building systems to identify potential

and relevant operational practices were coordinatedoperational improvements that could restore andthroughout the testing and commissioning period. The

improve building energy efficiency and reduce energy

vendor will continue to support the system, and further

costs. In 2022 and 2023, we have conducted retro-

investigations of the overall chiller plant performance willcommissioning projects at five properties in mainland

be conducted within the defect liability period.

China – Riverside 66 in Tianjin, Palace 66 and Forum 66
in Shenyang, Parc 66 in Jinan and Olympia 66 in Dalian.
The adoption of operational improvement measures has
resulted in savings of approximately RMB 0.7 million in
2023. The Group is also undertaking readily achievable
recommendations which will be completed in the firstquarter of 2024. Learning from the experience of theinitial RCx phase, in 2024, the Group will conduct onsite RCx reviews internally for the remaining existing
properties in mainland China, including Plaza 66 andGrand Gateway 66 in Shanghai, Center 66 in Wuxi, Spring
City 66 in Kunming, and Heartland 66 in Wuhan.

A pilot project utilizing artificial intelligence diagnosis andsmart operation reminder functions was completed atCenter 66 Office Tower 2 to explore the use of AI in
optimizing building operations. The Group will continue
to explore other innovative technologies to be applied in
our properties going forward.

High-efficiency Pump
During the year, we upgraded the domestic water
pumping unit in the shopping mall of Plaza 66, Shanghai,
to high efficiency pumps. The retrofit resulted in
an improved pumping efficiency and reduced energy

In Hong Kong, the Group completed retro-

consumption, with expected savings of about 49,000

commissioning projects at ten of our core projects

kWh per year.

in 2023. Operational improvements and immediate
remedial measures have been identified andWe also upgraded the constant pressure water supply

implementation will be completed in 2024.

system at Palace 66, Shenyang, to stabilize the operation

After the improvement works are completed, on-siteenergy consumption. It is expected that the property willenergy audits will be conducted in 2024 to monitor

achieve annual energy savings of about 35,000 kWh.

of the air-conditioning system and reduce operational

operational performance and ensure that equipment
and systems function as intended and are operating at
optimal efficiency.

Hang Lung Properties Limited
Sustainability Report 2023

55

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Chiller Plant Upgrade and Replacement
In 2023, we replaced two cooling towers at Palace 66,
Shenyang with expected energy savings of 262,000 kWh
per year, and completed a cooling tower enhancementat Riverside 66 in Tianjin to improve the heatrejection efficiency.
Our energy efficiency plans in 2024 include optimizing
three chiller plants at Plaza 66, Shanghai, and replacing
chillers at three of our Hong Kong properties.

Participation in Energy Ratings and Charters
Many of our properties in Hong Kong participate in

Wellbeing

Sustainable
Transactions

Appendix

Water and Circularity
Drought threatens people’s livelihoods globally. There is
growing demand for water, a finite resource, and climatechange is making water scarcity worse. We review our
exposure to water stress regularly to monitor the risk ofwater shortages.
Since water as a resource is essential to human life,
the price of water is kept low. But the low price ofwater often makes it difficult to motivate people to careabout water savings and conservation. Mindful of thischallenge, we look for pragmatic ways to tackle thisproblem and conserve water resources.

various energy saving schemes as organized by theHong Kong government and NGOs. Please refer toAppendix 2 – Memberships and Charters for the full list.

Our Approach
StatusParticipation in third-party certifications or ratings allows
us to benchmark ourselves against other companies
in the region and identify potential energy saving
opportunities through relevant comparisons with peers.

2025 Target
10% reduction in water intensity (m3/m2/year)
relative to 2018

Energy-efficient Design in Development Projects

2023 KPIAt our projects under development, such as Westlake

Identify highest priority water reduction
measures (considering impact and feasibility)
and implement first iteration of the 2023-2025
water reduction plan

66 in Hangzhou, energy efficiency measures have been
adopted in the early planning stage. These measures
include: chilled water dynamic balancing control valves;

On track

Completedcentral plant optimization control to optimize central
plant system equipment efficiency; high efficiency
motors for fans and pumps with variable speed drives(VSD); high efficiency boilers; a free cooling system; anda ground source heat pump system.

Our water usage is mainly for domestic uses (including
toilet flushing and hand washing in public areas)and process uses (including comfort cooling and fire
protection). Water use by our tenants in their areas is
discussed in the Tenant Partnerships section.
The Group’s work in developing our 2023-2025
Resource Management Plan included analysis of ourwater consumption patterns and practices across our
mainland China and Hong Kong portfolio, as well as
the current status and future trends for water stressat various locations. For our near-term water reduction
measures, the Plan focuses on the wide adoption ofwater-savings devices and water circularity opportunities
at selected properties on the Mainland and in HongKong. We are also exploring innovative solutions tomodify our water fixtures and processes.

56

Hang Lung Properties Limited
Sustainability Report 2023

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Water Use Data Review

Wellbeing

Sustainable
Transactions

Appendix

Riding on this successful practice, we conducted a

Our total water consumption in 2023 was 2,341,000 m ,3

a 11% increase as compared to 2022 and a 8% decrease
as compared to 2018. In Hong Kong, we consumed
502,000 m3 of water in 2023, a 7% increase compared to2022. In mainland China, water consumption increased

similar study at all our Hong Kong properties andcompleted a trial at several locations in 2023. Two of
our Hong Kong properties will undertake full replacement
works in 2024.

in 2023 by 12%, with a total consumption of 1,839,000

Water Recycling Pilots

m . The increases in both Hong Kong and mainland

In addition, as a part of our Resource Management

China are primarily due to the post-pandemic resumption

Plan, we have reviewed various types of water recyclingof business operations in 2023.

systems and their feasibility (e.g. capital and operating3

costs, and annual water saving potential). We identified
two systems as more suitable for our properties – airconditioning condensate water recycling and fire service

3,200
3,000

system water recycling. Following the Plan, we haveincorporated this initiative into our ESG KPI for 2024.
600

400

2,000
1,600

300

1,000

200

Water Intensity (L/m2)

Water Consumption ('000 m3)

Water Consumption and Water Intensity
Trend (2021-2023)

Following the positive results from a water recycling
pilot at Center 66 in 2021, the recycling system for air
conditioning condensate water at Center 66 Office Tower
1 was put into use in mid-2023. The full implementationof the recycling system contributed to a doubling ofwater recycled in 2023 compared to 2022, accounting

0

2021
2022
Hong Kong
Mainland China
Water Intensity (L/m2)

2023

0

for 2.6% of the annual water consumption. Also of note,
Grand Gateway 66 in Shanghai completed a rainwater
recycling system at its mall during 2023.
For our Hong Kong portfolio, we explored water
recycling opportunities for those properties that use

Water Saving Initiatives

potable water for toilet flushing systems (instead

Water Restrictorsof seawater flushing, which serves about 85% of

We continued to prioritize the application of highly
efficient water restrictors in water faucets, to reducewater consumption while not sacrificing the customer
experience of water pressure. In addition to several
recently opened or recently renovated properties, ourshopping malls Center 66 in Wuxi, Spring City 66

the total population in Hong Kong) since theseproperties contribute disproportionately to higher water
consumption. Following the best practices of ourMainland properties, we are studying the recycling of air
conditioning condensation water from air handling units
into flushing water.

in Kunming, and Forum 66 in Shenyang have also
completed replacement works in 2023. In general, we
concluded that a few thousand cubic meters of water
will be saved every year, and the return on investment of
this initiative would be within two years for each project,
notwithstanding the low water cost.

Hang Lung Properties Limited
Sustainability Report 2023

57

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Waste and Circularity

Wellbeing

Sustainable
Transactions

Appendix

Waste Data Review
StatusAround the world, waste generation rates are risingwith rapid population growth and urbanization. Publicawareness and regulatory requirements in Hong Kongand other cities in mainland China concerning waste
management are increasing. Two critical regulations willtake effect in 2024 – the municipal waste charging
scheme and the disposable plastics tableware and otherplastic products ban. As an owner and operator ofcommercial real estate, providing adequate facilities and2025 Target

On track

70% of operational waste diverted
from landfill2023 KPI

CompletedStandardize waste data consolidation method
and review and streamline waste handlingprocedures for all Hong Kong properties.

implementing robust programs to support our tenants
and visitors in waste reduction practices has become agrowing priority for us.
In addition, by applying circular principles to procurement
decisions and the design, construction and operationof buildings, we can reduce operational and embodied
carbon emissions and other types of pollution, as well as
reduce our dependency on virgin raw materials - thereby
reducing our impact on the planet and making us more
resilient to potential supply chain disruptions.

Our Approach
At present, most of our waste is sent to landfill sites
or incineration instead of being recycled or repurposed.
Typical waste generated from our properties includes
municipal waste from operations and tenants, as well as

We collect and monitor our waste and recycling datamonthly at our major properties. In 2023, we collected
58,688 tonnes of municipal waste, of which 38,659
tonnes were recycled or sent to incineration, with theremainder sent to landfill. We started to disclose ourmunicipal waste sent to incineration in 2022, following
the urban domestic waste classification and treatment
facilities plan jointly issued by the National Development
and Reform Commission and the Ministry of Housing
and Urban Rural Development of the PRC in 2021.
Taking into account both incineration and recycling, ourdiversion rate in 2023 is 66%, a significant increase
compared to the previous reporting year due to theincrease in food waste and paper recycling.

construction waste from renovation works. At most of
our properties, we collect and segregate paper, plastic,
glass, metal, aluminum, stainless steel, clothing, light

100
Waste Disposal and Diversion Trend (2022-2023)

tubes, batteries, and waste electrical and electronic

90,000equipment (WEEE) from our general waste stream for

90

80,000recycling. We also collect food waste from our tenants

75

60,000In the Group’s 2023-2025 Resource Management Plan,
we have identified high priority areas in order to meet or
exceed our 2025 waste diversion target. After reviewing
our current waste disposal and diversion patterns andWaste (tonne)

selected Hong Kong properties.

60
50

40,00030,00030
25

20,000waste management practices among our properties, we
identified that our focus should be on increasing therecycling rate for our properties in Hong Kong. It is also
important for us to verify and validate the waste andrecycling data from our operations and contractors.

58

Hang Lung Properties Limited
Sustainability Report 2023

0

2022
To landfill
To incineration
Recycled/composted
Diversion rate (from landfill)

2023

0

Diversion rate (from landfill)

for composting at our mainland China properties andIntroduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Operational Waste by Treatment Type in 2023

Wellbeing

Sustainable
Transactions

Appendix

Waste Audit In Hong Kong
In 2023, we engaged a third-party consultant to
conduct a detailed waste audit for selected properties
in Hong Kong to understand more about the day-today operational waste composition and opportunities
to maximize waste recycling and recovery. This
assessment also helps our operations to prepare forthe upcoming municipal waste charging scheme inHong Kong.
The waste audit covered six of our properties,
comprising a cross-section of building types (office,retail, residential, and service apartments). All the waste

34%

generated on the audit day was collected and segregatedTo landfill

into 15 waste streams for quantification. The chart

46% To incineration

below shows the waste composition of this waste audit.

20% Recycled/composed

Major waste composition of 2023 waste audit atselected properties

Operational Waste Initiatives
Status2025 Target

On track

70% of operational waste diverted
from landfill2023 KPI

Completed

Pilot at least four reuse and circularity
initiatives (e.g., food donation, furniture
reuse, urban farming, e-waste recycling) in
operations in Hong Kong and mainland China

10% Food waste
2025 Target

Status

10% Paper

On track

11% Plastics
69% Residual waste

70% of operational waste diverted
from landfill2023 KPI

Completed

Identify highest priority waste reduction
measures (considering impact and feasibility)
and implement first iteration of the 2023-2025
waste reduction plan

Hang Lung Properties Limited
Sustainability Report 2023

59

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

The waste audit also estimated the projected

E-waste Recycling in mainland China

waste generation and potential cost under the

In 2023, we established a partnership with a designatedupcoming municipal waste charging scheme for ourelectronic waste (e-waste) recycling company to collectportfolio in Hong Kong. Our consultant also sharedand manage all the spent electronic equipment fromrecommendations and best practices to enhance ourour properties in mainland China. With the objective ofrecycling rate. These findings were incorporated into our

promoting and engaging our tenants in this e-waste

Resource Management Plan for 2024-2025.

recycling service, we organized a tour for our officetenants and also students from a nearby primary schoolin Shanghai to visit one of the e-waste plants of ourrecycling partner. The tour introduced how the usedelectronic appliances and IT assets are disassembled
and properly processed into different raw materials toextend their useful life. A total of 474 pieces of e-waste
were collected and recycled from our Mainland offices,marking a pivotal milestone in our journey towards
circularity. As an encouraging outcome of the tour, one of
our tenants also signed an agreement with the e-waste
recycler to handle all its e-waste from multiple sites inmainland China.

2023 Waste audit in Hong Kong

Visit to an e-waste disassembly and recycling plant in Shanghai

60

Hang Lung Properties Limited
Sustainability Report 2023

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Recycling Promotion Programs

at Fashion Walk, Kornhill Plaza, and Amoy Plaza. During

Encouraging our tenants, customers, and the wider

the six-day campaign, 555 customers redeemed Fill n’community to recycle is critical for reducing waste
sent to landfill. Our programs mainly target two types

Go aluminum bottles upon designated spending at mallsand enjoyed free refill service from these stations.

of waste – food-related and those generated during
festive seasons.
In 2023, we redirected over 1.5 tonnes of packaged foodby partnering with Food Angel, collected over 35 kg ofused mooncake boxes by partnering with Maxim’s, andcollected about 1.4 tonnes of red packets with Greeners
Action. We also continued to support the Foodpanda
reusable packaging pilot scheme.

Fill n ’Go campaign in Hong Kong

Recycling at our Hong Kong Headquarters
We are taking action to reduce the waste generated
and sent to landfill from our offices. In 2023, weundertook a major rejuvenation project at our Hong Kong
offices, in order to enhance wellness, engagement, and acollaborative culture. Thorough reviews were conducted
to identify ways to minimize the Project’s environmental
impacts and promote employee and community
Mooncake Recycling Campaign with Food Grace in Hong Kong

wellbeing. This groundbreaking project exemplified
sustainability excellence by efficiently recycling 3,289
pieces of office furniture, resulting in the avoidance ofThis year, we also collaborated with Fill n’ Go to promote

510,990 kilograms of CO2 emissions and the diversion‘naked purchasing’ in our shopping malls in Hongof 139,508 kilograms of waste from landfills, all within

Kong. The self-service smart refill stations for shampoo,a remarkably short 1-month period. Please read more

handwash, and other personal care products were set up

details in the case study below.

Hang Lung Properties Limited
Sustainability Report 2023

61

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

C A S E

Wellbeing

Sustainable
Transactions

Appendix

S T U D Y

Office Rejuvenation ProjectWe partnered with a Hong Kong-collaboration saw 182 office resource items

Solutions (SOS), and the Crossroads

donated to 14 local NGOs from various sectors,

Foundation, a local non-profit serving global needs,

including Crossroads Foundation, Oxfam Hongto implement a holistic resource utilization scheme

Kong, and the Hong Kong PHAB Association.

for our Hong Kong Office Rejuvenation Project.

Giving a second life to these assets not only

The first phase of the collaboration has seen

diverts waste from landfill but also helps theseover 3,200 office resources reused, redistributed,

non-profits in the planning and implementation ofor recycled, successfully diverting nearly 140,000

projects to support the building of sustainable andkg of municipal waste from landfill and avoiding

equitable communities.

more than 510 tonnes of carbon emissions—theequivalent of the carbon emissions generated
by over 3,000 flights between Hong Kong andSingapore. Measures implemented as part of thescheme include:• Staff Take Home Program: Hang Lung’s Hong

• Reuse: Hang Lung is currently using numerous
recycled office resources at its swing office, whileothers are being stored for reuse upon completionof the Project.
• Upcycling: Resources that cannot be reused,such as wooden desktops, will be processed

Kong employees were encouraged to take home

and transformed into items like office panels forwell-maintained office furniture and electronic

secondary use.

appliances, including task chairs, pedestals,
computer monitors and ovens, free of charge. The
first round of the program was well-received, withclose to 90 staff members participating.

62• Donation to NGOs: The initial phase of thebased green startup, Sustainable Office

Hang Lung Properties Limited
Sustainability Report 2023

• Recycling: Other remaining non-reusable
resources will be sent to local recyclers fortreatment to maximize their contribution to acircular economy.

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Construction Waste Initiatives

On track

Appendix(as shared above), we have been monitoring theconstruction waste diversion rate and recycling rate atour development projects since 2022. Our total diversion
and recycling rates keep improving, reaching 92% in both

60% of construction waste diverted fromlandfill for new projects starting in 2022 withmaximized recycling
2023 KPI

Sustainable
Transactions

With our relevant 2025 sustainability targets in mind
Status2025 Target

Wellbeingcases in 2023. In addition to continued monitoring, we
will also carry out an on-site waste study in 2024 toCompleted

Conduct a pilot research study to improve
construction waste (e.g., broken concrete)
recycling and circularity in one Mainlanddevelopment projectgain a deeper understanding of our construction waste
recycling rate and practices.
As mentioned in our Climate Resilience chapter, we
are also developing reuse and recycling opportunities.
For instance, the waste concrete generated from theWestlake 66 development project in Hangzhou wasreused as aggregate and processed into low carbon

Status2025 Target

On track

Demonstrate best efforts to maximize the useof recycled, reused and bio-based materials
on all new projects
2023 KPI

recycled concrete aggregate (RCA), and we are working
on a feasibility test for a medium-scale pilot to makethe RCA into low embodied carbon concrete bricks for
adoption at Westlake 66 in Hangzhou.
Renovation waste generated by our tenants can also be

Completed

Explore at least two innovative solutions to
reduce embodied carbon in concrete, steel
and curtain walls

reused or recycled. In 2023, we collaborated with LVMH
Group on a recycling project for a store renovation in
Shanghai, and on establishing a recycling process fordemolition materials. The study identified six recycling
and reusing opportunities for three major types ofrenovations waste: gypsum board, plywood board, andEffective construction waste management is essential
for making the construction industry more sustainable,
and China has the highest construction waste emissions
in the world. Construction and demolition waste (CDW)
accounts for about 40% of the total mass of solidmunicipal waste generated in China, and there is
growing stakeholder understanding of the importance ofincreasing recycling in these areas.

concrete and tiles. The six recycling and reuse cases we
identified were as follows: recycling waste gypsum board
into gypsum board and decorative plaster, recycling
plywood waste into recycled MDF and acoustic wood
wool, and recycling waste concrete and tiles into
recycled concrete brick and terrazzo. Among these six
use cases, we identified waste gypsum recycling as
the most promising way to reduce waste and carbon
emissions in the fit-out process. We are working with ourconsultant and material suppliers on the next phase of
the project, which is to identify and develop a feasible
and cost-effective recycling value chain pilot project for
gypsum board.

Hang Lung Properties Limited
Sustainability Report 2023

63

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Biodiversity

Biodiversity Guidelines for New Projects

Our Approach

We have developed biodiversity guidelines for our

We recognize the potential for biodiversity loss in theconstruction and operation of our properties as the resultof changes in land use, invasive species, air, light andwater pollution, greenhouse gas emissions and climatechange. We are stepping up our efforts to promote andconserve biodiversity.

future property developments and major renovations.
Following a biodiversity feasibility study for our Westlake
66 project in Hangzhou, we determined the need forpractical principles to incorporate biodiversity elements
throughout the different stages of project development.
Holistic biodiversity planning and design contributes
to the ecology of the community and city. Our next

To protect natural habitats and biodiversity, we

step will be to pilot the guidelines with an appropriate

aim to minimize the environmental impacts ofdevelopment project.

our developments through responsible planning andproducts and raw materials from more sustainable

Baseline Ecological Study for Existing
Property and its Surroundings

sources and with lower ecological footprints.

In 2023, we engaged a third-party consultant todesign, and responsible procurement practices favoring

The choice of materials for use in our day-to-day
business operations is another important consideration.
All temporary formworks used at The Aperture in Hong
Kong were certified by the Forest Stewardship Council(FSC) or Programme for the Endorsement of Forest

commence a baseline ecological survey at Peak Galleria
and its surrounding area (300 meters from the siteboundary) in Hong Kong. The study includes a surveyof both floral and fauna, and will be completed by the endof 2024.

Certification (PEFC). Westlake 66 in Hangzhou will utilize
FSC certified wood in its building design, and we also use
FSC certified toilet paper at our offices.
Corporates and financial institutions are starting to
pay more attention to biodiversity loss and need tofactor nature into financial and business decisions.
The Taskforce on Nature-Related Financial Disclosures(TNFD) published its recommendations in September
2023, providing a global framework for organizations
to report on nature-related dependencies, impacts, risks
and opportunities. We will conduct a gap analysis
in 2024 and disclose our nature-related risks andopportunities in line with the TNFD recommendations
in our Sustainability Report 2024. Our early analysis
suggests that terrestrial ecosystem use, GHG emissions,solid waste and ground/surface water use are major
impact drivers or dependencies of high materiality in ourbusiness connections to nature.

64

Hang Lung Properties Limited
Sustainability Report 2023

Fauna survey includes site survey on birds, butterflies andother faunaIntroduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

The interim findings identified 408 plant species

In 2023, we initiated our first bird collision survey at allin the Peak Galleria developed area and adjacent

our operating properties on the Mainland. Working withwoodland. Overall 78% are local native species ofexperts, the survey records and analyzes bird collision

which Rhododendron simsii (Red Azalea), Pavetta

cases occurring at or near our properties. The survey

hongkongensis (Hong Kong Pavetta) and 10 other plantrequires data from two bird migratory seasons (fall 2023

species have conservation concerns. The findings also

and spring 2024) for analysis.

recommend that we replace some existing plants at
Peak Galleria with native shrubs and small tree species,
and that some natural habitats be restored to attract
birds and butterflies. These potential enhancements will
be considered in 2024.

The 2023 fall survey noted 19 bird collision cases ofwhich 16 were identified during the official bird collision
survey period from September to November 2023, while
the other three were identified before the official survey
commencement date.
The survey findings may help us to identify any bird
collision hot spots for targeted mitigation. We will also
take the opportunity to identify façade patterns that may
reduce or increase the odds of such collisions. We will
share the study results in our next Sustainability Report.

>> Next Steps >>We will disclose a more in-depth analysis and reduction
plan on our energy use as part of our Net Zero Roadmap(which will be published in the last quarter of 2024). We
will also review and share our progress in preparing for
TNFD in the next report.
Rhododendron simsii (Red Azalea)

Within our Resource Management Plan, we have fourmain activities planned for 2024. In Hong Kong we will
focus on increasing our recycling rate, while in mainland

We will provide the ecological survey results and update
any actions taken in our next sustainability report.

Bird Collision Study for Existing Portfolio in
mainland China
Birds fly into building glass windows where the glass
is so reflective or transparent that the birds mistake

China, we will focus on enhancing water circularity
at selected properties and on exploring opportunities
to increase our recycling rate. Both in Hong Kongand mainland China, we will continue to develop a
biodiversity strategy for our properties. Lastly, we will
review the circularity and reduction of waste generated
from our construction projects.

the windows for open sky. This phenomenon is called
bird collisions. According to one US estimate, between
100 million and 1 billion birds die in the US from bird
collisions each year. While an estimate is not available
for China, all available evidence indicates that thephenomenon is similarly widespread there. Despite theprevalence of the issue, bird collisions are not recognized
as an important biodiversity and conservation issue by
most urban residents.

Hang Lung Properties Limited
Sustainability Report 2023

65

WELLBEING
Sustain a healthy, inclusive
and safe environment andpromote social wellbeing
Relevant GRI Disclosure
401 (2016), 403 (2018), 404 (2016), 405 (2016),
406 (2016), 413 (2016)

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Wellbeing
Wellbeing, which includes physical, mental, and social aspects, is afundamental sustainability issue. It encompasses a wide range ofconsiderations, from more objective issues like indoor air quality, to more
subjective ones, like fostering happiness and cultivating human potential.
At Hang Lung we are committed to ensuring that employees, customers
and communities enjoy an unrivalled and inclusive environment that
promotes their health and wellbeing. In this chapter, we will share ourapproach to engaging and fostering the wellbeing of our employees andthe wider community. More information about how we work on wellbeing
issues with our customers and suppliers is available in the Sustainable
Transactions chapter.
2023 Performance Highlights

Increased the Employee
Engagement Survey
percentile rank in the
Gallup Overall Databasefrom 68th to 74th

180 women students
initiated 31 sustainablecommunity projects,
benefitting over 4,500
community members
under the Hang
Lung Future Women
Leaders Program

Hang Lung As
One volunteer teamcontributed 69,891
volunteering hours,
benefitting 37,495 peoplein Hong Kong andmainland China

Hang Lung Properties Limited
Sustainability Report 2023

67

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Our Approach
Wellbeing can be measured and analyzed in many ways. Given how much of their lives most people spend in buildings,
it is vital to consider how wellbeing can be fostered and enhanced in the built environment. Moreover, it is essential forcompanies of all kinds to attend to the wellbeing of their employees and to make positive contributions to the wellbeingof their communities. We take an ambitious and expansive approach to fostering wellbeing. Across our varied initiatives,
we aim to ensure that we provide a safe, healthy, inclusive, and comfortable environment for our employees, customers,
suppliers/contractors and the community.

2030 Goal
Ensure employees, customers and communities enjoy an unrivalled
environment that promotes their health and wellbeing
employeeengagement rating

2025 Targets
Female-to-Malepay ratio

disabilities

Maintain Female-to-Malepay ratio of

1:1

Achieve an
employeeengagement rating
greater than orequal to thehealth and Wellness

Obtain local orinternational healthand wellness
certification for all
our existing
Mainland properties

75th
percentile

Conduct an audit of all
our properties and corporate
practices on how to enhancewellbeing and opportunities
for persons with disabilities
WELL Gold certificate

priority ESG training

Deliverpriority ESG training
targeted to all departments and seniority levels

community
initiatives

Lost Time Injury Rate

Maintain a Lost Time
Injury Rate of 1.5 or
below for employees

68

Hang Lung Properties Limited
Sustainability Report 2023

Obtain WELL Gold certificate
or equivalent for at least one
new property in Hong Kong
youth on wellbeing
andmainland China

Maintain zero work-related
fatalities for employees andcontractors

Work with youth

on wellbeing community
initiatives at all properties by 2025

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Employee Wellbeing

Talent Attraction and Retention

Our Approach

We adopt an agile approach in our talent development

At Hang Lung, we value our employees and strive
to prioritize their wellbeing. Our policies are designedwith our people in mind, aiming to create a working
culture that fosters openness, excellence, fairness
and inclusivity.

strategy. While we advocate internal promotion andinvest in developing internal talent through talentreviews, leadership development programs, and job
rotations, we also acquire talent from outside to ensure
we have a high-performing team to meet the demands ofthe ever-changing market. We also conduct an annual

We are committed to supporting our employees’

review of our manpower planning looking five years

development and helping them achieve their careerahead to understand the manpower needs necessary toaspirations. We consistently recognize employee

support our business strategy.

performance and contributions with the principle ofmeritocracy that guides our human capital policies,
including monetary and non-monetary rewards for

In 2023, we focused on the following talent recruitment
and retention initiatives:

excellence. We also promote work-life balance andStaff Referral Program – We enhanced the staff referrala culture of care for staff wellbeing. And we seek

program firstly by encouraging referrals across projects

innovative approaches to fostering creativity andand between Hong Kong and mainland China, andreinforcing our organizational culture.

secondly by increasing the amount of bonus offered for

In 2023 Hang Lung’s two headquarters in Hong Kong

successful referrals.

and Shanghai, as well as all operating projects in

Reward and Recognition – We regularly benchmark

mainland China, were recognized by HR Asia as being

against the market and review the pay competitivenessamong the Best Companies to Work for in Asia 2023 atof our colleagues so that we can continue to attract andthe HR Asia Awards. The award recognizes companies

retain talent. Our pay-for-performance philosophy further

that demonstrate high levels of employee engagement

ensures that our staff are rewarded commensurate

and excellent workplace cultures.

with their contributions. With a focus on internal talent

In addition, the company was named the Employer of
the Year 2022/23 and won the Learning & Development
Award presented by JobsDB HK for our dedication
to cultivating talent and creating the best possible
workplace for our staff.

development, 45% of our key talent (as identified in ourannual talent review exercise) were promoted or given
expanded jobs in 2023. As a result of these initiatives, we
retained 94.2% of our key talent in 2023.
Retention Measures – We continued key initiatives
in talent management such as a review to identify
key talent, targeted leadership development programs,
and personal and professional opportunities for all
employees offered by our learning and development
team to enhance engagement. More details are available
in our Learning and Development section.

Hang Lung has been named one of the Best Companies to WorkFor in Asia 2023 by HR Asia, for demonstrating excellence inhuman resource management and for its successful employee
engagement initiatives.
Hang Lung Properties Limited
Sustainability Report 2023

69

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Campus Recruitment Programs – We partnered withThe Group provides competitive remuneration, withlocal universities in Hong Kong and mainland China

benefits regularly benchmarked against the market. In

to recruit management trainees and interns through2023, we achieved a key talent retention rate of 94.2%. In

career fairs.

addition, 45% of our key talent (as identified in our annual
talent review exercise) were promoted or given expanded

Our voluntary turnover rate decreased comparedjobs in 2023.

to 2022, despite a challenging job market withstrong competition for talent. We gain insights into
employee concerns through regular conversation andexit interviews, which enable us to identify opportunities
for improving employee retention.

ESG-linked Compensation
Within the Group’s holistic approach to compensation,
ESG plays a very important role. ESG KPIs are directly
incorporated into our annual appraisal process for
departments and individual employees (please see

Key retention metrics

2021

2022

2023

Voluntary turnover rate

14.6%

10.4%

9.9%

No. of voluntary turnover

622

440

419

Appendix 3 for our Strategic ESG KPIs for 2024), setting
the stage for biannual performance reviews, including
for senior management and the CEO. ESG performanceis also an important factor in the discretionary bonuses
granted at the end of each year at all levels, including
the CEO. Our CEO reports to the Board biannually on

Motivating and Rewarding Performancethe KPIs for which he is accountable. The CEO isaccountable for all of the KPIs of his direct reports,

Our total compensation approach encompasses salary,including the annual Strategic ESG KPIs mandated toincentives, benefits, career development, and work-life

various departments by the SSC.

wellbeing. Full-time employees are entitled to benefits
such as parental leave, life, medical and dental insurance,

Employee Engagement

parking permits and various corporate staff discounts.

StatusWe have also included an additional day of fully paid
leave called Founder’s Day Leave for all employees
in Hong Kong and mainland China (introduced in2020). Share options have also been granted to eligible
executives periodically over the past several years torecognize their loyalty, performance, and contribution,and so that they can have a personal stake in theGroup’s success.

2025 Target

On track

Achieve an employee engagement rating
greater than or equal to the 75th percentile2023 KPI

Completed

Coordinate a process for each department
to develop and implement three employee
engagement measures

Under the Group’s biannual appraisal process for
performance, each department and staff member must
formulate KPIs approved by management. Departments

We prioritize employee engagement as a key factor

and individual employees must also embed the Group’s

for talent retention and for driving performance

Strategic ESG KPIs into their own KPIs. These KPIs are

and excellence.

defined against the Group’s core strategies. In mid-year
and year-end performance reviews, staff are evaluated
not only on whether they achieved their stated objectives(“what to achieve”), but also by their behaviors in doingso (“how to achieve”). We also offer a discretionary
bonus as a reward for outstanding employees.

70

Hang Lung Properties Limited
Sustainability Report 2023

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Since 2021, we have conducted an annual employee

Sustainability Charterengagement survey to understand the emotional

The Sustainability Charter is our internal sustainability

connection and dedication employees feel towards theircommunication campaign to invite employees tojob and Hang Lung. Following the survey, company-

make a pledge to Hang Lung’s sustainability

wide and department-specific results are communicatedcommitments. In 2022 and 2023, we published

to all employees. We ensure that each departmenta regular sustainability e-newsletter to facilitate an

formulates and documents an annual action plan forunderstanding about sustainability among our staff

the lowest-ranking concerns in their departments, withand encourage engagement and participation in ourperiodic reporting on the progress of those actions tosustainability journey.

ensure progress.
At the corporate level, we invest in initiatives andstrategies to provide opportunities for employee
development, foster a supportive and caring work
environment, encourage open communication, andpromote work-life balance. By actively engaging
our employees, we can create a more productive,
collaborative, and successful workforce.
In August 2023, the Group conducted our third annualcomprehensive, third-party employee engagement
survey. The overall participation rate was 98.2% (HongKong: 94.2%; mainland China: 99.4%), a slight decrease
from 2022 (98.6%).
In 2023, our score in the Gallup Overall Database
increased by +0.10 to 4.41 out of 5 and we ranked
in the 74th percentile. Our score improvement rate in
the third year of the survey was in the top 25% ofcompanies with the fastest growth. The encouraging
results attest to the effectiveness of the actions we have
implemented in the last two years. We will continue withthe annual survey and take action to continue improving
our employee engagement.

Employee Recognition
We consistently recognize employee performance andcontributions, and employee recognition is identified
as one of our strengths in our annual employee
engagement survey. The following are some ofthe highlights.

CEO Award
Our CEO Award, presented on a yearly basis, recognizes
outstanding projects and teams that exemplify the bestof our corporate culture in their behavior while promoting
teamwork and cross-team collaboration.
The winners of the Gold, Silver, and Bronze awards
are selected on a fifty-fifty weighting of votes between
the award selection committee and all staff. As such,the selection represents meaningful peer recognition. In
2023, teams received awards as follows:• Gold: "Grand Gateway 66 x The Phantom of The Opera"
Musical Collaboration• Silver: Health & Safety enhancement initiatives in HL• Bronze: Palace 66 - Summer Music Festival• Special Mention: Data Privacy & Security GovernanceInitiative; and Building a High-Performing and Engaged
Workforce through Learning & Development

Hang Lung Properties Limited
Sustainability Report 2023

71

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Emerald AwardLong Service Award

The Emerald Award, held annually since 2014,

We are fortunate to have colleagues whose many years

recognizes staff members delivering exceptionalof dedication, commitment and loyalty to the Group are

customer service. It encourages individuals to take prideworthy of respect and recognition. The Long Service

in their jobs and shows staff that their work is valued

Award is our way of honoring employees for their many

and appreciated by management and other colleagues.

years of service and serves to remind all our people how

The awardees are selected based on several criteria:these individuals have helped make Hang Lung what it

initiative, accountability, problem-handling, creativity,

is today. In 2023, 100 staff members received the Long

uniqueness, and ‘going the extra mile.’

Service Award for serving the Group for 10, 15, 20, 25, 30
and 35 years.

Staff Appreciation Day
When employees feel happy at work, they are moreengaged, productive, and successful. We therefore
encourage and foster a fun and affirmative work
environment. To express our gratitude for employees’
hard work and dedication, our management team visitsvarious portfolios to present gifts to employees on Staff
Appreciation Day.

2023 Emerald AwardThe 2023 Hang Lung Emerald Award presentation
ceremony, honoring frontline employees who
have demonstrated exceptional customer service,
witnessed the stories of many nominated cases
exemplifying service excellence, including examples
of cultural heritage conservation and instanceswhere employees aided the police in solving cases.
The Company received over 300 nominations fromvarious areas of the business across Hong Kongand mainland China.
LEARN MORE >>Our management team visits colleagues at their places of work
across Hong Kong and mainland China.

72

Hang Lung Properties Limited
Sustainability Report 2023

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Learning and Development Pillars
Leadership / Management

Personal Effectiveness

Functional• Leadership Development
Program (LDP)• MT & Intern Program• Management Development
Series (MDS) for managers• Supervisory Development
Program (SDP)
for supervisors• Personal Effectiveness
Series (PES) include
soft skills like
communication, presentationand mindset etc.
• Language andComputer Skills• Emerald Service Series• Functional Series e.g.
Office Leasing, Retail
Leasing Department
Specific Training• Professional
Development

Learning and Development

On track

in different ways. First, we work with department heads
at the beginning of each year to discuss their needs andshare our learning plan. Second, we conduct interviews,
focus groups, or questionnaires to understand the needs

Deliver priority ESG training targeted to all
departments and seniority levels
2023 KPI• Orientation, e.g. HL
Challenge Day• Compliance & Legal• Health and Safety• Business Knowledgee.g., INSIGHT• ESG Training

We identify the training needs for employees at all levels
Status2025 Target

Company andMarket Knowledgeof our colleagues for new programs developed. Thirdly,
Completed

Develop and deliver at least 500 hours of ESG
training including at least 100 hours focusedon delivering climate-related competencies

we pilot new training initiatives and improve them bycollecting feedback prior to broader rollout. Finally, we
also review post-training feedback to better understandthe needs of our employees.
We also invest in our Learning Management System(LMS) for the enhancement of functionality and user

Our employees have access to a fully integrated, holistic

experience. This digital platform produces customized

training program. The program fosters a culture ofmanager reports allowing leaders to keep track of their

ongoing learning and growth – leading to increased

teams' learning status. We continue to expand thejob satisfaction, as well as opportunities to deepen

learning content in the LMS with diverse topics ranging

connections with colleagues from different departmentsfrom computer skills to management and other soft

through mutual enrichment and experience sharing.

skills. Once the LMS is integrated with our Human

Building on a structured framework for learning anddevelopment, the Hang Lung Academy (Academy66) deployed a wide range of courses in 2023
under four pillars: Leadership / Management; Personal
Effectiveness; Functional; and Company and Market
Knowledge, equipping our employees with the rightknowledge, skills, and mindset to keep up with industry

Resources Information System (HRIS), which will befully launched in the first half of 2024, the system
will provide a more user-friendly experience with easiernavigation, more comprehensive information, and newfunctionalities. Overall, the LMS will continue to serveas an essential one-stop platform to drive and enable aculture of learning.

changes, sustain a high level of competence and excel in
their personal and professional development.

Hang Lung Properties Limited
Sustainability Report 2023

73

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Since 2022, we introduced self-paced learning to our

We also measure our learning success. In addition toemployees through LinkedIn Learning and e-learning

the ESG KPIs, we define two quantitative L&D targets: anprograms on our learning management system. In the

average of 24 learning hours annually per employee, andcase of LinkedIn Learning, we introduce a new way of

100% completion of key compliance courses such aslearning that enables our employees to access its on-

Integrity, Cybersecurity, and Crisis Management. In 2023,

demand library of videos covering a very wide range

we delivered 126,704 hours of training with an averageof the latest business, technology, and creative skills.

of 30 hours per employee, equivalent to around 3.8 days,

In 2023, the number of colleagues subscribing to thisrepresenting an 25% increase compared to 2022.

platform with company sponsorship increased by 75%
from 2022. Altogether, they accumulated 506 learning
hours, viewing 2,238 courses and 11,115 videos in 2023.

Annual Employee Training Hours, 2021 - 2023

In addition to our internal programs, we also support

150,000

45

colleagues in pursuing professional certifications or
​30.1
30.1

professional examinations of their choice. In 2023, we
granted a total of HK$793,781 in training sponsorship.

Training Hours

entitled to sponsorship to attend relevant programs or

100,000

30

​22.2
22.2

​126,704
126,704
50,00002023 Management Trainee andInternship Programs

​24.0
24.0

​94,649
94,649​101,824
101,824

2021
2022
2023
Training Hours
Average training hours per employee

150Training Hours by Category, 2023
Training topics

Training hours

Functional

62,254 hours (49%)

Company and Market Knowledge

45,600 hours (36%)

across Hong Kong and mainland China. Both

Personal Effectiveness

12,588 hours (10%)

programs not only serve as a platform for talent

Leadership / Management

6,262 hours (5%)

In 2023, Hang Lung welcomed 17 management
trainees and 33 interns to join our various teams

acquisition but also as a means to cultivate asustainable and agile workforce. As we move
forward, we are committed to nurturing young
talents, inviting new ideas, and embracing change.
LEARN MORE >>Since 2014, Hang Lung has been accredited as a
Manpower Developer under the Employees Retraining
Board (ERB) “Manpower Developer Award Scheme,”
which recognizes our achievements in manpower
training and development.

74

Average training hours per employee

external training programs in Hong Kong. Employees are

Hang Lung Properties Limited
Sustainability Report 2023

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Highlights of specific activities in 2023 under the fourlearning pillars are as follows:
Leadership / Management
Management Development Series – To ensure ourpeople leaders have the management capabilities toinspire and lead their teams to execute our strategies,
we developed a “Management Development Series” toprovide a platform to cultivate leadership attributes aswell as to share experiences and best practices. The
series includes several modules of people skills andcritical managerial skills conducted through interactive
sessions, self-paced and peer learning. These modules
have been delivered to 300 plus managers from the
Senior Manager to General Manager levels. We arepreparing to introduce new topics to our people leadersin 2024 and will continue to support them in building
an engaged workforce where their team members feel
motivated and empowered to perform at their best.

Leadership Development Program
The Leadership Development Program is a seriesof accelerated programs aimed at supporting our
key talents at various stages of their leadershipdevelopment journey in Hang Lung.
LEARN MORE >>Leadership Development Program – By 2023, we havesuccessfully launched four cohorts of the Leadership
Development Program (LDP) in various grades, including
LDP for Executive Leaders, LDP for Senior Managers,and LDP for Managers. To date 89 key talents have
graduated from this series of programs. In 2024, we will
launch another cohort of the Leadership Development
Program for Managers (LDP-M) and the Leadership
Development Program for Senior Managers (LDP-SM).

Personal Effectiveness Series – To build up employee
confidence and skills to enhance teamwork, productivity
and reinforce our core behaviors, in 2023 welaunched the “Personal Effectiveness Series” (PES) – a
comprehensive curriculum and platform for employees
to learn and share experience in various soft skills.

The key talent coverage rate is targeted to reach 61%

The PES currently includes seven modules as detailed

by 2024.

below, which encourage effective peer communication,cultivate a growth mindset, and impart key skills
including how to put together compelling presentations
and effective and efficient time management. The
modules, both core and elective, have been rolled out inphases utilizing diverse delivery formats from interactive
sessions and on-line resources to peer learning.

Hang Lung Properties Limited
Sustainability Report 2023

75

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

1. Effective Communication
2. Embracing Growth Mindset
3. Influencing Skills

2023 Hang LungManagement Conference

4. Time Management
5. Creative Problem Solving
6. Storytelling in Business Presentations
7. Negotiation Skills
Over 1,800 office employees across the organization
have had access to the PES. To advocate ownership oflearning, while everyone will attend the core modules,
they are encouraged to discuss their development goals
with their managers and agree on an elective module toattend, which most benefits their growth.
The participation and feedback from the initiative has
exceeded our expectations, and it may have contributed

The Hang Lung Management Conference washeld physically in both Hong Kong and Shanghai
after three years of virtual conferences. Themed“Embracing the Next Normal” and taking a hybrid
approach, the conference brought together over
200 executives and management from Hong Kongand mainland China to discuss ideas for navigatingand “embracing the next normal,” demonstrating theCompany's dedication to excellence and openness
in showcasing best practices in the evolving
business landscape.
LEARN MORE >>to improvements in our employee engagement andoffice employee turnover scores. In 2023, our overall
employee engagement score increased from 4.31 to
4.41, and our administrative employee turnover rate has
dropped from 13.4% to 10.5%. In 2024, we will introduce
new topics to the PES and continue to support employee
personal and professional growth to sustain a highperforming team.

Functional
Office Leasing and Retail Leasing Series – enables
our leasing colleagues to acquire work-related skills andknowledge. Various modules, developed and conductedby internal subject matter experts, serve the needs of
distinct groups of employees from Officer to Section
Head level. There are a total of 15 modules for the
Office Leasing Series and ten modules for Retail Leasing
Series. The modules run from Q3 2022 to Q2 2024
engaging over 250 team members.

76

Hang Lung Properties Limited
Sustainability Report 2023

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

ESG Capacity Building for Specific Departments – To
strengthen our colleagues’ ESG knowledge and capacity
to drive our sustainability strategy, we prioritized ESG
training for selected departments in 2023 with a target
to deliver 500 learning hours. We arranged specialized
workshops on decarbonization, sustainable sourcing,climate adaptation and bird collision, among others,
totaling 734 learning hours, exceeding our target by 47%.
Training about Dementia – In cooperation with theHong Kong Young Women's Christian Association(HKYWCA), we organized a series of training workshops
throughout the year to promote the concept of being

Learning week 2023

“dementia friendly” and to enhance our operational
employees' understanding of dementia. For more details,
please refer to the Love.No.Limit Dementia Friendly
Program section.

Sustainability Learning – To bring sustainability to life,
we have arranged workshops to help our employees
better understand how sustainability relates to our work,

Company and Market Knowledge

and the impact of our actions on the communities we

INSIGHT Business Knowledge Sharing Session – In

serve. Webinars like “Hang Lung Community Investment

2023, INSIGHT (our internal webinar series) continued
to invite internal and external speakers to share businessknowledge or market best practices with our colleagues
on a wide range of topics including “Introducing Urban
Landscape Open Space and Horticulture Maintenance,”“Enabling Our Vision through the Hotel Business” and“Introducing Hangout 2.0." These monthly webinars not
only build knowledge but facilitate cross-departmental
understanding and appreciation across teams.
Learning Week – In March, Academy 66 organized our
first ever Learning Week across the Company. This
week-long event brought together over 1,400 colleagues
from Hong Kong and nine cities in mainland China,
who immersed themselves in a range of activities,
including speaker sessions, workshops, and networking
events of their choice. With the belief that everyone cantake charge of their own learning and development, weare committed to promoting our learning culture andproviding comprehensive development opportunities toenable the growth of our colleagues and the Group.

- A Vision for a Sustainable Society,” and “Navigating ourBusiness Responsibly in a Water-stressed World” aim tofoster a sustainable environment within our workplaceand beyond. We are also aiming to build an open andincreasingly inclusive workplace. This year we partneredwith NGOs such as CareER and Baptist Oi Kwan Social
Service to organize sharing sessions and provide online
resources to educate our employees on best practices
for interacting with people with differing abilities andcultural backgrounds.
Hang Lung Center for Real Estate at Tsinghua
University – In 2010, Hang Lung and Tsinghua
University joined forces to create the Hang Lung Center
for Real Estate (HLCRE) with the aim of fostering
academic research and meaningful dialogue within thereal estate industry. In 2023, we collaborated with
HLCRE to introduce Tsinghua courses and resources
for the first time. The initiative attracted over 300
employees contributing to over 2,446 learning hours
in 2023, enabling them to enhance their industrial
knowledge. Hang Lung is committed to furthering its
partnership with HLCRE in 2024 and making significant
advancements in areas such as leadership development,
talent acquisition, and professional training.

Hang Lung Properties Limited
Sustainability Report 2023

77

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Operation, Central Procurement, Human Resources
and Sustainability. All property management staff arewelcome to participate in the committee meeting.
Through its work, we have strengthened the internal
accident reporting workflow, improved the health andsafety training hierarchy, and enhanced contractors’safety management.
We have also enhanced our occupational healthand safety management system. In Hong Kong, wehave implemented an occupational health and safety
management system at all our managed properties, of
Our colleagues joined courses via Hang Lung Center for Real
Estate at Tsinghua University

which around 70% of our total construction floor area inHong Kong is certified to ISO 45001.
In mainland China, we have introduced a health and

Employee Health and Safety

safety management system and relevant training for
Status2025 Target

On track

Maintain a Lost Time Injury Rate of 1.5 or
below for employees
2023 KPI

staff to comply with the latest Work Safety Law. In 2023,
we also reviewed the implemented safety production
responsibility system to reflect various policy updates.
In the middle of 2023, a joint team from different
disciplines carried out a compliance audit to verify

Completed

Provide health and safety training to 100% of
employees in mainland China and Hong Kongthat we are complying with safety-related laws andregulations, such as mainland China’s Work Safety Law.
In Hong Kong, we also conduct an internal health andsafety audit annually to ensure the health and safety
management system and all related provisions areEndorsed by our SSC in 2021, we launched a Group-level
Health and Safety Policy in 2022. The policy fosters
collaboration, the exchange of best practices between
our projects, offices, and operations, and the sharingof lessons from safety incidents. A Health and Safety
Subcommittee (HSS) has been established under theauthority of the SSC to advance the Group’s health andsafety agenda and exchange best practices and lessons
learned across all aspects of our business. Employees
are encouraged to share ideas, safety concerns andobservations, and other issues with members of the
HSS. In 2023, we conducted two HSS meetings.

We actively promote health and safety awareness andstrengthen training and education across our portfolio.
Regular health and safety training has been provided
to staff to enhance their knowledge and awareness ofworkplace health, hygiene, and safety - for instance, tips
on preventing coronary heart disease and foot and ankle
injuries, an introduction to ISO 45001, basic emergency
handling and first aid, and hints on accident prevention.
In Hong Kong’s tenders for operations, term contractors
possessing an ISO 45001 certificate is essential in thetender assessment process. Contractors are required

Our Health and Safety Policy specifies the roles andto show their commitment to ensuring the health andresponsibilities of the employer and employees insafety of their direct employees. Regular meetings

maintaining workplace health and safety. An operational

are held to assess and review the health and safety

Health and Safety Management Committee meets three

performance of our contractors.

times a year, tracks relevant safety KPIs and monitors
safety issues across our Hong Kong operations. The
committee includes representatives from the Property
Management Services Department, Hong Kong Business78

maintained to the ISO 45001 standard.

Hang Lung Properties Limited
Sustainability Report 2023

Selected colleagues are sent to attend a Safety and
Health Supervisor course at the Occupational Safety and
Health Council in Hong Kong. We also define safety
responsibilities for all staff. All employees should protect

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

themselves from hazards and immediately report unsafe

and review safer working procedures before tasks areacts, unsafe conditions, unsafe machinery, and defective

carried out.

safety equipment and personal protective equipment(PPE) to their supervisors. Moreover, to strengthen
employee awareness and understanding of health andwellbeing, we launched an online health and safety
training program and achieved our ESG KPI, with a
100% employee completion rate. This program is thefirst level health and safety training in Hang Lung for all
employees and runs annually on top of any workplace

Our operations teams (including Hong Kong andmainland China) conducted more than 250 drills in
2023 for various identified emergency scenarios. Sucharrangements help our teams to familiarize themselveswith proper emergency handling procedures to ensure
the safety of all employees, tenants, contractors
and visitors.

safety training and sharing sessions organized across

We are committed to a safe, harmonious, and open

the Group throughout the year.

workplace. Employees are encouraged to report any

In June 2023, we also launched Safe Production Monthto foster safety awareness and culture. For more details,
please refer to the Project Safety Management section.

actual or potential safety hazards to their supervisors.
We also collect health and safety feedback from
employees via an online form on a monthly basis.
The form is restricted to designated personnel and

The Group has an incident and accident reporting

employees can report any observations and share ideas

mechanism and Crisis Management Manual in placefor enhancing our health and safety performance. In

to address incidents and accidents at various severity

2023, the HSS set up a dedicated email to collectlevels. In case of work-related accidents, we investigate

any health and safety-related ideas, comments, andthe incident and implement corrective actions if

concerns from employees. Only specific committee

necessary. As part of the occupational health andmembers have access to the email and colleagues’safety (OHS) management system, we have adopted

information will be kept confidential during discussions.

a plan-do-check-act approach to manage health andsafety across the Group. We first identify and prioritize
safety risks, and then conduct regular inspections anddrills to validate the effectiveness of our procedures.
Aiming for continual improvement, the Group reviews its
management procedures from time to time. The results

Among our 2025 targets, we aim to maintain a lost time
injury rate (LTIR) of 1.5 or below for employees and zerowork-related fatalities for employees and contractors.

Employee Wellness

are regularly reported to top management.

StatusIn Hong Kong, we have identified workplace hazards

2025 Target

and prepared a set of risk assessment reports covering
time or as circumstances change. Suitable preventive

Obtain local or international health andwellness certification for all our existing
Mainland properties

measures, targeted training, and PPE are considered

2023 KPI

daily operations, which are updated from time toto minimize workplace hazards with reference to thehierarchy of control. According to our statistics, themost frequent staff injury cases in Hang Lung are

On track

Completed

Obtain WELL Gold rating or above for at least
one Mainland or Hong Kong property

caused by slipping, tripping and falling on the samelevel. We have reviewed the workplace environment,
including regular inspections, enhancements of signage
display, and upgrades of facilities. In relation to the PPE
issue, we have reviewed the anti-slip performance of
uniform shoes for frontline staff and selected PPEs with
better protective performance. For high-risk operations,our project/operation teams evaluate potential risks

We are committed to promoting a healthy culture that
fosters employee wellness. We participate in a Mental
Health Workplace Charter, a HKSAR government-led
initiative to promote mental health at work including
active listening and communication, and creating an
inclusive and friendly workplace environment.

Hang Lung Properties Limited
Sustainability Report 2023

79

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Health and wellness support – We offer free voluntary

In addition to incorporating wellness elements into theannual medical examinations to eligible employees, while

design, we also consider the health and environmental

also allowing an alternative option under which theimpact of building materials, by assessing and scoring

program reimburses employees (up to defined limits) for

our material selections in line with GIGA’s RESET®

their spending on physical or mental wellness activities

Materials standard. RESET® Materials is a data-drivenof their choice.

standard for evaluating the health, safety, and ecological

Mental wellness support – We have an Employee
Assistance Program (EAP) to provide support toperformance of building materials and products
in projects.

employees experiencing mental or emotional difficulties.

Wellness@HL Program – Our core wellness activity

A hotline providing professional counselling has been

program in our offices includes five major pillars –set up to ensure that all staff and their families canphysical, mental, social, financial and environmental – toseek support to resolve struggles such as work-related

support staff wellbeing in a holistic manner.

anxiety, hardships, and relationship pressures, among
others, as needed.

Corresponding wellness tips, talks and activities havebeen provided to help develop healthy lifestyles, including

Work-life balance – We respect employees' personal

workshops that promote physical health, mindfulness

needs and promote a healthy work-life balance withand emotional wellbeing, personal and professional

flexible working hours and work-from-home options.

relationship building, and building team spirit. In 2023,

Family-friendly support – We support our employees
in continuing breastfeeding after returning from their

we organized 12 workshops/activities involving morethan 1,100 participants.

maternity leave. As a family-friendly employer, we
provide lactation rooms in all our workplaces forbreastfeeding staff.
Social wellness – To strengthen the connection between
managers and employees, we established a Wellness
Fund to facilitate team-building activities.
Wellness-focused workplace – As part of our efforts
to promote employee wellbeing and development, ouroffice rejuvenation project in Shanghai was completed
in 2022, and the one in Hong Kong started in 2023.
Our rejuvenated offices provide facilities that enhance

Christmas Fun Day

employee wellness, such as fit bikes, greenery, andcollaborative spaces.

Hang Lung's Shanghai headquarters

80

Hang Lung Properties Limited
Sustainability Report 2023

We organize regular wellness talks to share tips on
physical health, emotional wellbeing, personal and professional
relationship building.

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

To enhance the physical and mental health and work

Wellbeing

Sustainable
Transactions

Appendix

Diversity and Inclusion

vitality of employees, we also set up food and beverage

Statusbar to offer coffee, tea, health drinks and vitality snacks
in the morning for our staff.

2025 Target

On track

Maintain Female-to-Male pay ratio of 1:1
2023 KPI

Completed

Design and implement at least three
initiatives related to culture, age and gender
to enable a more diverse and open workplace

Status2025 Target

On track

Conduct an audit of all our properties andcorporate practices on how to enhancewellbeing and opportunities for persons
with disabilities
The Wellness Fund supports departments in organizing teambuilding activities to cultivate bonding and friendship.

We also arrange drinks or breakfast sessions

2023 KPI

Completed

Develop and implement a disability
inclusion action plan based on 2022
assessment resultswith management to foster communication between
management and employees.

We are implementing a range of initiatives with variousorganizations to ensure that candidates and employees
are treated fairly, and that Hang Lung attracts, nurturesand retains talent from all backgrounds.
We aim to build a diverse workforce and value,
appreciate, and welcome employees of all backgrounds
and with diverse characteristics. We have stipulated ourcommitments to diversity and inclusion in our Equal
Employment Opportunities Policy (see Code of Conduct,
part 13.1) and our Sustainability Policy.
We are committed to improving the female-to-male ratio

In 2023, we initiated a regular Group-wide social event, “Friday
Cheers,” to encourage cross-team interactions in a morerelaxed setting.

of executive employees. Between 2022 and 2023, ourexecutive staff ratio of 39.5% female to 60.5% maledecreased slightly to 39.4% and 60.6% respectively. We
have set a 2025 target to maintain an overall 1:1 femaleto-male pay ratio, and our overall pay ratio for 2023
was 1:0.977.
The Group is also working with our partners to create
opportunities for people from diverse backgrounds inmainland China and Hong Kong. In 2023, we signed
the Hong Kong Equal Opportunities Commission's Racial
Hang Lung Properties Limited
Sustainability Report 2023

81

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Diversity and Inclusion Charter for Employers with a

We participated in the 2023 CareER Disability Inclusioncommitment to offering job opportunities to people

Index (DII), a comprehensive localized assessment toolof minority ethnic backgrounds on a fair basis. We

that measures our corporate strategies and practices

have engaged Baptist Oi Kwan Social Service, one ofincluding an assessment of whether the working

the service providers under the Hong Kong Labour

environment is barrier-free. We have incorporated some

Department’s Racial Diversity Employment Programme,of the assessment recommendations into our office

for job mapping.

rejuvenation project in Hong Kong.

We have partnered with Social Ventures Hong Kong,

We also shared our diversity, equity and inclusiona venture philanthropy organization, to recruit twopractices and metrics in the ULI Global Real Estate DEI

mothers for part-time work in 2023. We continue

Survey 2023. The survey results allow us to benchmark

to be a corporate member of CareER, a charitable

ourselves against peers in the commercial real estateorganization providing career development support forindustry to identify ways to operate more effectively andhigher-educated persons with differing abilities andinclusively. From the survey results and other sources

special education needs, to facilitate consideration ofof information, we recognize that we can do more to

candidates with special needs or living with disabilities

support people living with disabilities and aim to audit

when recruiting recent graduates. We were also one

all our properties and corporate practices to enhanceof the inclusive employers participating in CareER’s

inclusive opportunities by 2025.

Inclusive Recruitment Fair 2023.

The Group also values age diversity. We are eager toattract young talent to support our business expansion,
including through our highly competitive Management
Trainee (MT) Program. We also value the wisdom
and experience of our long-serving staff. In 2023, we
continued to provide suitable opportunities to older
talent – persons aged 60 and above. We have 65 staff
aged 60 and above as of December 31, 2023.

Percentage of Executive Staff by Genderin 2023
By gender

Percentage

Female39.4%

CareER’s Inclusive Recruitment Fair 2023

Male

60.6%

In mainland China, we commenced a partnership with

Percentage of Staff by Age Group in 2023

the Disabled Persons' Federation (殘疾人聯合會系統) in

By age group

Percentage

special needs and differing abilities for our Mainland

Under 30

11.1%

operations. In 2023, six interns were hired through

30 – 50

72.3%

Over 50

16.6%

2023, to explore opportunities to hire more people withthe collaboration.

82

Hang Lung Properties Limited
Sustainability Report 2023

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

AppendixCommunity Wellbeing
Our Approach
Status2025 Target

On track

Work with youth on wellbeing community
initiatives at all properties by 2025
2023 KPI

Completed

Deliver at least 2,200 mentorship hours and
4,400 leadership training hours to selected
female university students in Hong Kong andmainland China

The Group is committed to enriching lives and promoting
diversity and inclusion in our communities. During2023, volunteers completed 129 volunteer activities,
contributing 69,891 service hours and benefitting 37,495
people across Hong Kong and mainland China. In
addition, the Group donated HK$12 million to various
charitable causes and provided five venue sponsorships

Hang Lung As One Volunteer TeamOur employees generously commit time and effort totheir communities. Every year, the Group recognizes
volunteers with the highest service hours in each ofour Hong Kong and mainland China projects. Individual
teams hold a Volunteer Award Presentation Ceremony
every year to present certificates of appreciation toawarded volunteers.

at our properties to non-profit organizations for nominal

This year, we refined and enhanced the Volunteer

rental fees.

Leave and Recognition Scheme in Hong Kong. We
offer one day of full paid volunteer leave to ourHang Lung As One Volunteer Team

colleagues participating in volunteer activities organized

Established in Hong Kong in 2012, the Hang Lung As

by charitable organizations and Hang Lung As One

One Volunteer Team actively cooperates with various

Volunteer Team. We also expanded our Annual Volunteer

community groups and charitable organizations to

Recognition Scheme to include two new categories

support the wellbeing of the communities in which wefor personal awards, and awards to departments andwork. Over the past 11 years, the initiative has set

projects. With these enhancements we seek to further

up 12 teams across Hong Kong and 11 projects in 9

inspire our colleagues’ enthusiasm for taking part in

Mainland cities. Teams take part in a range of social

initiatives that benefit the community.

service activities to promote women’s empowerment,
youth education and development, and elderly services,

Hang Lung Nationwide Volunteer Day

with more than 13,700 volunteers and over 205,000

We hold our annual Nationwide Volunteer Day in Hongaccumulated service hours.

Kong and in nine cities across mainland China every
September to celebrate the anniversary of the foundingof Hang Lung Group. This year, under the theme, “Caring
for Women’s Physical and Mental Health,” members ofHang Lung management led the Hang Lung As One
Volunteer Teams to actively engage local government
departments, tenants, and relevant industry experts in
conducting a series of enriching and relaxing activities
for women.

Hang Lung Properties Limited
Sustainability Report 2023

83

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Number of Volunteering Activities by Focus Area

Hang Lung Nationwide Volunteer Day
This year, more than 1,200 volunteers took part inengaging activities for more than 7,300 grassroots
women and their children to promote family

78% Diversity and Inclusion
12% Environmental Protection
10% Others

cohesion and mental wellbeing amid the pressuresof work, study and daily life.

Women’s Empowerment

LEARN MORE >>Women have always played an important role in thefamily, society, and the nation, and it is important
to maintain an environment enabling them to fully

Partnership with Business for Societal
Impact (B4SI)

participate in both the community and the economy. We

In 2023, we joined Business for Societal Impact (B4SI)

as well as society at large, in the promotion and in

to manage and measure our corporate social impact insupport of developing women’s roles in the communityalignment with global standards. Working closely withand the workplace.

actively engage government, industry, and NGO partners,

the B4SI team, we piloted the use of their framework,
learning how it can inform our interpretation of social

Hang Lung Future Women Leaders Program

impact data and enhance our community investment

We initiated and organized the nationwide “Hang Lung

approaches. We plan to expand the use of the B4SI

Future Women Leaders Program” in 2022. The program

framework in 2024, and will share more in future reports.

aims to unleash the potential and strengths and facilitate
the diversified development of female university students
through leadership training.

Breakdown of Volunteer Hours by Region
71,982
63,984

Volunteer Hours

55,98647,98839,990​59,460
59,46031,992
23,994
15,996

10,146
​1
0,146
4,432
​4,432

7,998
0

84

2021
Hong Kong

Hang Lung Properties Limited
Sustainability Report 2023

​11,765
11,765​10,431
10,431

6,832​6,8322022
Mainland China

2023

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

C A S E

Wellbeing

Sustainable
Transactions

Appendix

S T U D Y

First Edition of the Hang Lung Future
Women Leaders ProgramW

e concluded the first edition of the “Hangleadership training and mentorship, and 90% of them

Lung Future Women Leaders Program”

successfully completed the program.

this year with our partners, the Hong

Kong Federation of Youth Groups Leadership
Institute, and the Xuhui District and Jing'an District
Women's Federation in Shanghai. The program
welcomed 43 elite women from various industries
to serve as mentors.

With the support of mentors and the Hang
Lung As One Volunteer Team, the participantsalso worked in groups to plan and execute
31 sustainable community projects in responseto the United Nations Sustainable Development
Goals and various social issues, benefiting 4,500

Almost 180 female university students from acrosspeople while enhancing community wellbeing. In

the nation participated in the program, and 75% ofaddition, outstanding students were offered a two-them were the first in three generations of theirmonth internship opportunity with Hang Lung, orfamilies to attend university. Over a period of eightcompanies associated with the program’s mentors.

months, participants received over 6,300 hours of

For more information, please refer to ourpress release.
Hang Lung Properties Limited
Sustainability Report 2023

85

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Youth Development

Scholarship for Visually-Impaired Students

We recognize that education is the cornerstone of

In 2023, we partnered with the Ebenezer School &social and economic development and support selected

Home for the Visually Impaired to establish “The Hang

educational projects to benefit the community.

Lung Scholarship and Development Donation for the
Visually Impaired.” The fund aims to support the holistic

Hang Lung Mathematics Awards

development of students and graduates of the School

This year marks the 20 year of the Hang

pursuing further studies and career development.

thLung Mathematics Awards (HLMA), a prestigious
biennial competition founded in 2004. The HLMA
inspires secondary school students to explore beyond
boundaries and fulfill their creative potential inmathematics and science. For each competition, Hang
Lung Properties donates HK$2.5 million.

Proceeds from the HK$30 million fund will be used every
year for scholarships and learning subsidies as well as
for arranging Christian ministry works by the School.

Support for the Strive and Rise Programme
We have actively supported the Hong Kong SAR

Ten competitions over 20 years have attracted 2,600

Government’s Strive and Rise Programme. The

student participants from over 200 schools in Hongprogramme aims to support underprivileged juniorKong, submitting more than 460 innovative researchsecondary school students through a tripartite

reports. The HLMA has had a profound influence inpartnership between the government, the businessthe cultivation of young mathematical talent, with many

sector and the community, to help them broaden theirpast winners graduating from top universities worldwide

horizons, reinforce their self-confidence and develop aand now contributing significantly to society throughpositive outlook on life. We invited 40 employees andwork in academia and professional fields. The HLMA

their friends and relatives to serve as mentors and shareplays an important role in recognizing and fostering

their life experiences with the mentees during the one-a love of mathematical inquiry that lasts far beyond

year mentorship programme.

secondary school.

Hang Lung Mathematics Awards
Co-organized by the Hong Kong University of
Science and Technology, the 2023 Hang Lung
Mathematics Awards attracted the participation ofover 70 teams from close to 50 secondary schoolsin Hong Kong.
LEARN MORE >>86

Hang Lung Properties Limited
Sustainability Report 2023

Mentors and mentees of the Strive and Rise Programme
visit Monopoly Dreams Hong Kong™, a Monopoly-themed
attraction at Peak Galleria, to learn how the mall creates uniquecustomer experiences.

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Partnership with Tsinghua University
Since the Hang Lung Center for Real Estate (HLCRE)
was established in 2010, Hang Lung has donatedmore than RMB 33 million to the Tsinghua University
Education Foundation to promote the developmentof the University’s real estate discipline and provide
targeted support for the Center to carry out academic
research and exchange activities.
In 2023, the two parties announced the deepeningof cooperation on industry-university work in the fieldof sustainability, proptech innovations, and exceptional

Wellbeing

Sustainable
Transactions

Appendix

The social impact of this three-year program includes:• 2,200 beneficiaries including dementia patients andtheir carers;• attendance of over 29,300 people at the Community
Inclusion Day;• over 1,100 hours of volunteer services;• over 930 hours of training for volunteers andemployees; and• completion of the “Dementia Friends” training programby 275 frontline employees.

talent cultivation. We also worked with the HLCRE
to initiate a “Sustainable Real Estate Scheme” forTsinghua University teachers and postgraduates, toprovide funding for their creative academic research on
topics including green and healthy buildings, low-carbon
development and digitalization, and real estate corporate
governance, with the aim of promoting the application ofresearch findings to daily life.

Elderly Care
The population is aging in Hong Kong and mainland
China, and dementia has emerged as a significant
concern among the elderly. Additionally, there is anurgent need to address social problems experienced

Love.No.Limit Dementia
Friendly Program

by elderly who live alone or suffer from chronic
illnesses. We aim to do our part to reach out to elderly

In our Community Inclusion day, we provided free

individuals through outreach programs, offering thembrain health consultations, cognitive testing, anda compassionate helping hand, while raising public

information about important community resources

awareness about their needs.

and referral services. Besides, together with aLove.No.Limit Dementia Friendly Program
We partnered with the Hong Kong Young Women’s

selection of merchants from Amoy Plaza andKornhill Plaza, exclusive shopping concessions were
offered to the elderly during the event.

Christian Association (HKYWCA) to launch the Hang
Lung x HKYWCA Love·No·Limit Dementia Friendly

LEARN MORE >>Program. The program offers support to dementia
patients and their carers, desiring to build an inclusive,
dementia-friendly community. We also organized a seriesof training workshops and discussions of case studies.
Our frontline employees had the opportunity to practiceand master the skills needed to interact properly withpeople living with dementia.

Hang Lung Properties Limited
Sustainability Report 2023

87

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Sustainable
Transactions

Appendix

Pilot Assessment on Inclusive
Shopping Malls>>Next Steps>>

This year, we partnered with Diversability Lab of the

focus groups in early 2024 to support the development

Leping Social Entrepreneur Foundation to conduct apilot project at Center 66 in Wuxi to review accessibility
for people living with disabilities. The pilot assessment
was led by a group of disabled persons arranged by
the Leping Foundation, and covered the common areaof the mall (e.g. parking, restrooms, digital information
platform, and customer service counter) and threestores operated by our tenant partner, LVMH Group.
The assessors reviewed not only physical accessibility
but also the service experience. We are studying thepilot assessment results and the potential expansion ofsimilar assessments at our other properties.

Accessibility review by assessor at Center 66, Wuxi

88

Wellbeing

Hang Lung Properties Limited
Sustainability Report 2023

We will conduct stakeholder interviews, surveys andof a Wellbeing Plan. In the next report, we will
share the summary of our plan that will define ouroverall objectives and expected positive impacts on
the wellbeing of our employees, workers, customers,
tenants, and the wider community in 2025 and beyond.

SUSTAINABLE
TRANSACTIONS
Promote sustainability practices inall types of business transactions
Relevant GRI Disclosure
204 (2016), 308 (2016), 403 (2018), 416 (2016), 418 (2016)

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Sustainable Transactions
As a top-tier property developer in Hong Kong and mainland China withbusiness activities involving nearly the whole life cycle of a property, we
have a responsibility to manage and improve our environmental, socialand governance performance along our value chain. We work with our
key stakeholders – our suppliers upstream, our tenants downstream, thefinancial institutions that provide us with capital, the certification bodies
that review our assets, and others – to move beyond compliance towards
best practices. In this chapter, we will describe our collaboration withstakeholders and how we integrate the sustainability agenda at various
stages of our business cycle.
2023 Performance Highlights

Secured 55% of
total debts andavailable facilities fromsustainable financing

90

Hang Lung Properties Limited
Sustainability Report 2023

Launched a program
to partner withtenants on sustainability,
Changemakers, in bothHong Kong andmainland China

Over 80% of overall
construction floor area
is certified as green
buildings, and nearly 80%
has either been certified
with or has applied for
WELL or WELL HSR

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Our Approach
We are committed to promoting sustainable practices in all types of business transactions. Hang Lung’s own efforts
in Climate Resilience, Resource Management and Wellbeing can have an outsized impact if we work together withlike-minded stakeholders to advance these priorities. Broadly speaking we are taking two approaches. First, we arecollaborating with a small number of key partners to identify shared interests and innovate together on priority issues.
Second, we are developing a systematic approach towards engaging all our suppliers and tenants on sustainability
priorities over time.
Real estate will need to undergo significant transformation in the coming decades. Together with our business partners
and stakeholders, we hope to demonstrate the growing synergies between the financial and ESG objectives of ourbusiness. By further integrating the two into a unified strategy, we are forging our own resilient and distinctive path tosustainable growth in real estate.

2030 Goal
Collaborate with all suppliers and customers to advance our sustainability priorities

2025 Targets
digitalmarketingEmbrace technology to build
a robust digital platform for assessing
suppliers’ ESG performanceleases100%of marketing events
evaluated for theirsustainability impacts

ESG due diligencesustainable finance

100%of leases incorporate
sustainability
provisions

100%of potential asset
acquisitions include
ESG due diligence50%

of total debts andavailable facilities
from sustainablefinance

Sustainability Issues Across Our Value Chainorder to engage stakeholders and explore opportunities

To support our overarching goal of achieving sustainable

to secure partnerships in sustainability.

growth, we consider sustainability to be integral to
our business value chain. We work to understand therelevant sustainability issues across our value chain in

Hang Lung Properties Limited
Sustainability Report 2023

91

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Financing – In addition to our own revenue streams,

In response to growing global investor interest in

we leverage various financial instruments to maintainsustainable finance, and following the Hang Lung

healthy cashflow and sustain our growth. We regularly

Properties Green Finance Framework developed instrengthen our partnerships with sustainability-minded

June 2019, the Group launched the Hang Lung Groupfinanciers and investors, while driving capital towards

Sustainable Finance Framework (“the Framework”) in

projects and initiatives that create a broader positive

January 2023 to extend coverage across the Group,
cover a wider range of financing instruments, andimpact for the environment and society.
Design and Development – As a commercial real estatedeveloper, we aspire to design and develop properties
that create long-term value. To do this, we are working
to integrate sustainability throughout our project designand development cycle.

extend the scope of the eligible investments to include
social projects. The Framework enables Hang Lung
Group to raise funds under due scrutiny to financeprojects delivering environmental and social benefits,
thereby supporting our business strategy and vision
for leadership in sustainability. It was developed in line

Leasing, Sales and Business Operations – Commercial

with international guidelines such as the Sustainability

property leasing is the core business of the Group,

Bond Guidelines 2021 (SBG), Green Bond Principles

supplemented by the sale of selected properties. We

2021 (GBP), Social Bond Principles 2021 (SBP), theare working to enhance the sustainability features of theGreen Loan Principles 2021 (GLP) and Social Loan

spaces we lease and offer for sale. We know that our

Principles 2021 (SLP). We engaged Sustainalytics,

tenants and customers are also increasingly concerned

an independent environmental, social and governanceabout global sustainability challenges.

research, ratings, and analysis firm, to provide a secondparty opinion on the Framework to affirm that it isService Delivery – Our building operations, thecredible, robust, impactful, and fully aligned with current

services that we provide, and the activities of ourindustry standards.

tenants consume substantial resources. It is, therefore,
incumbent on us to enhance the operational efficiency

The Sustainable Finance Subcommittee (SFS) under theof our buildings while maintaining a safe and healthy

SSC has responsibility for and oversight of mattersspace to minimize adverse effects on our environment

related to sustainable finance and meets regularly toand communities.

review industry developments and the Group’s progress,
as well as to approve eligible projects where required, as

Stakeholder Engagement – Every day we interact

stipulated under the Framework.

with hundreds of thousands of people, from tenants
and customers to business partners and community

In 2021, we set a target that Hang Lung Properties

members. We actively engage with all stakeholders in

obtain 50% of total debts and available facilities

sustainable practices, so that we can drive systemicfrom sustainable finance by 2025. Sustainable financechanges for our planet’s future.

now accounts for 55% of our total debts andavailable facilities.

Investors
Sustainable Finance Framework
Status2025 Target
50% of total debts and available facilities
from sustainable finance2023 KPI
50% of total debts and available facilities fromsustainable finance by the end of 2023

92

Hang Lung Properties Limited
Sustainability Report 2023

Aheadof Schedule

CompletedIntroduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Green Loans and Green Bonds
As of the end of 2023, Hang Lung Properties had secured 11 green loan facilities and issued 12 green bonds underthe Hang Lung Group Sustainable Finance Framework, with the proceeds allocated to predefined eligible green projects
as follows:

Green Loan and its Allocation (as at December 31, 2023)
Year
SignedFacility Amount(HK$’M)

Drawn Amount(HK$’M)

2019

1,000

710

Total

1,000

710

Arranged in MainlandYear
SignedFacility Amount(RMB’M)

Drawn Amount(RMB’M)

Allocated toSpring City 66, Kunming

2020

1,549

1,549

Spring City 66, Kunming

Forum 66, Shenyang

2021

475

475

Forum 66, Shenyang

Riverside 66, Tianjin

2021

224

224

Riverside 66, Tianjin

Westlake 66, Hangzhou

2021

500

413

Westlake 66, Hangzhou

Forum 66, Shenyang

2022

481

481

Forum 66, Shenyang

Olympia 66, Dalian

2022

750

750

Olympia 66, DalianHeartland 66, Wuhan

2022

570

570

Heartland 66, Wuhan

Heartland 66, Wuhan

2022

840

840

Heartland 66, Wuhan

Westlake 66, Hangzhou

2022

500

107

Westlake 66, Hangzhou

Parc 66, Jinan

2023

490

490

Parc 66, Jinan

Total

6,379

5,899

Arranged in Hong Kong
Hong Kong

Allocated toCenter 66, Wuxi;
Forum 66, Shenyang;
Center 66 (Phase 2), Wuxi;
Riverside 66, Tianjin;
Olympia 66, Dalian;
Spring City 66, Kunming;
Heartland 66, Wuhan

Hang Lung Properties Limited
Sustainability Report 2023

93

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Green Bond (as at December 31, 2023)
Location

Year Issued

Maturity Date

Original Currency

AmountEqv HK$’M

2020

Feb 26, 2027

HK$’M

700

700

Apr 7, 2027

HK$’M

500

500

Nov 20, 2025

HK$’M

750

750

Jan 19, 2028

HK$’M

230

230

Feb 5, 2027

HK$’M

750

750

Feb 2, 2026

HK$’M

465

465

Feb 10, 2028

HK$’M

555

555

Aug 27, 2028

HK$’M

805

805

Sep 28, 2028

USD’M

50

391

Jan 13, 2029

HK$’M

605

605

Jan 24, 2029

HK$’M

590

590

Mar 31, 2030

HK$’M

400

400

Total

6,741

Allocated

6,741

Pending for Allocation-

Hong Kong

2021

2022

2023

Green Bond (HK$’M) (as at December 31, 2023)
Allocated to:

2020

2021

2022

2023

Total

Shenyang

Forum 66

-

365

10

19

394

Wuxi

Center 66 (Phase 2)

-

175

4

309

488

DalianOlympia 66

-

24

-

59

83

Kunming

Spring City 66

634

41

145

175

995

Wuhan

Heartland 66

745

620

-

-

1,365

HangzhouWestlake 66

-

266

22

888

1,176

Hong Kong

228 Electric Road

-

47

288

77

412

The Aperture

-

-

287

343

630

Green Panda Bond (1)

-

1,198

-

-

1,198

1,379

2,736

756

1,870

6,741

Refinancing
Total AllocatedNotes:(1) Green Panda Bond – All proceeds were applied to Spring City 66 andHeartland 66.

94

Hang Lung Properties Limited
Sustainability Report 2023

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Reporting Criteria• A Green Bond is added to the Sustainability Reports when it was issued by the Company or its subsidiaries during thereporting period.
• A Green Bond is removed from the Sustainability Reports when it has been fully repaid by the Company or its
subsidiaries during the reporting period.
• A Green Loan is added to the Sustainability Reports when it has been drawn by the Company or its subsidiaries and wasstill outstanding at the end date of the reporting period.
• A Green Loan is removed from the Sustainability Reports when it has been fully repaid by the Company or its
subsidiaries during the reporting period.
• The green projects eligible for the use of green proceeds are approved by Sustainable Finance Subcommittee under the
Sustainability Steering Committee.
Unallocated proceeds are held in accordance with our liquidity guidelines for short-term time deposits or investments, orused to repay existing borrowings within the Group. An independent practitioner, PricewaterhouseCoopers, has issued alimited assurance report. Please refer to Appendix 7 of this Report for further details.
Under the green buildings category of our Sustainable Finance Framework, we allocated green loan and green bondproceeds to nine properties as follows:

Portfolio

Notable sustainability initiatives

Center 66 – Phase 2(Wuxi, mainland China)• A ground energy system (GES) will be installed to provide hot water tothe heritage building• Applied a radiant cooling and fresh air technology for efficienttemperature control in the sales office and achieved 45% electricity
saving compared to a traditional VAV system during summer• Conducted climate hazard and vulnerability assessment andimplemented a series of improvement measures

GFA: 107,118 m2

Forum 66
(Shenyang, mainland China)
GFA: 293,905 m2

Olympia 66(Dalian, mainland China)
GFA: 221,900 m2
Spring City 66(Kunming, mainland China)
GFA: 333,112 m2• Reduced electricity intensity by 13.9% in 2023 compared with 2018
• Replaced heating, cooling and hot water supply from the local heating
utility and gas-fired absorption chillers with a high-efficiency heatrecovery system for our hotel floors. The system can reduce an averageof 100 MWh of electricity and 25,000 m3 of natural gas during coolingdays, and an additional 5,000 m3 of natural gas during heating days
• Obtained WELL Health and Safety Rating for the mall and office building• Reduced electricity intensity by 19% in 2023 compared to 2018
• Installed a solar panel system which generated 162 MWh of renewable
power in 2023
• Obtained WELL Health and Safety Rating for the entire portfolio• 100% powered by renewable energy for landlord and tenant operations
and avoided approximately 14,300 tonnes of carbon dioxide emissions
in 2023• Installed a hospital-grade ventilation system (MERV 16) with UV light forsterilization to improve indoor air quality• Obtained WELL Health and Safety Rating for both the mall andoffice building• Equipped with water recycling systems to recycle fire service systemdischarged water, rain water and grey water

Hang Lung Properties Limited
Sustainability Report 2023

95

Introduction

Our Sustainability
Strategy

Resource
Management

Wellbeing

Sustainable
Transactions

Portfolio

Notable sustainability initiatives

Riverside 66(Tianjin, mainland China)• Reduced electricity intensity by 13.4% in 2023 compared to the 2018baseline; electricity intensity has dropped for seven consecutive years(from 2016-2023)• Implemented climate adaptation measures to reduce potential negative
impacts from flooding, typhoon and heat waves in 2023. For example,
we installed a flood barrier or flood gate at all major plant rooms, andredesigned the air outlet for a better heat transfer and freezing effect• Obtained Health and Safety Rating for the entire portfolio

GFA: 152,831 m2

Heartland 66(Wuhan, mainland China)
GFA: 328,612 m2

Westlake 66(Hangzhou,
mainland China)
GFA: 194,100m2

228 ElectricRoad Redevelopment(Hong Kong)
GFA: 9,754 m2

The Aperture(Hong Kong)
GFA: 16,226 m2

96

Climate Resilience

Hang Lung Properties Limited
Sustainability Report 2023

• Adopted advanced Building Management System with a highly efficientbuilding service system• Installed IAQ sensors in malls and offices to monitor real-time IAQ levels• Obtained Health and Safety Rating for shopping mall and office building• Equipped with a water recycling system to recycle HVAC
condensation water• Installed a closed-loop ground source heat pump system for the
hotel building• Westlake 66 project, Jingqing Lane No. 1, has obtained the Net Zero
Energy Building Demonstration Case of "2022 Hangzhou Green Building
and Building Energy Saving Demonstration Project" during the design
stage in 2023 – the first zero energy project for historical buildings
in Hangzhou• Since July 1, 2022, the construction site has been fully powered byrenewable energy, and has already avoided approximately 1,790 tonnesof carbon dioxide emissions• Deployed 5G technology to monitor, among other things, construction
safety and quality, energy consumption, and dust and noiselevels, to ensure environmental indicators in the construction stage
meet requirements• At least a 35% energy reduction from the baseline model ASHRAE
90.1-2010 (US) and 28% from the baseline model BEC 2018 (HK)• Provided drinking water dispenser and healthy food vending machine at
G/F lobby for building users, visitors and tenants• Installed architectural fins as sunshine device, provided automatic
window blind via daylight sensor and operable window control via
electricity actuator, installed rainwater recycling system for irrigation• Adopted Digital Quality Management System (DQMS), a multiplatform cloud solution for construction workflow inspection andquality management.
• Use of Enertainer, an advanced battery energy storage system (BESS) to
replace traditional diesel generators. As of February 2023, 66 tonnes ofcarbon emissions have been avoided.

AppendixIntroduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

ESG Due Diligence in Asset Acquisitions
Status2025 Target

On track

Sustainable
Transactions

Appendixbuildings. The full list of our green building certifications
is provided in Appendix 4.
We also studied the feasibility of adopting otherrecognized green building standards in 2023. We have

100% of potential asset acquisitions include
ESG due diligence.
2023 KPI

Wellbeing

identified a potential project in Hong Kong to obtain
EDGE certification, a globally recognized green building
Completed

Improve the ESG due diligence guideline forpotential asset acquisitions in Hong Kongcertification system focused on making buildings moreresource-efficient. We will share the results and what welearned in the next sustainability report.
Westlake 66 is striving for top environmental

For optimal decision making and to identify material ESG
risks or opportunities that could impact our business,
we consider ESG factors in our investment decisions. In
2022, we developed an ESG due diligence guideline forasset acquisitions as part of our project management
process for mainland China. In 2023, we adopted
a similar approach to integrate ESG due diligence
considerations into the feasibility study and valuation of
selected sites in Hong Kong.
The ESG due diligence guidelines cover eightcategories of ESG topics, namely: biodiversity; heritage

and wellness performance, and pursuing multiple
certifications accordingly. The project is pursuing LEED
Platinum/Gold ratings, BRREAM Excellent rating, China
Green Building Design Label, and WELL Platinum rating.
In 2023, the project achieved ‘BREEAM Commercial
Award – Leadership’ in BRE China Awards 2023. And
one building within the Westlake 66 project, Jingqing
Lane No. 1, has obtained the Net Zero Energy Building
Demonstration Case of "2022 Hangzhou Green Building
and Building Energy Saving Demonstration Project"during the design stage in 2023 – the first zero energy
project for historical buildings in Hangzhou.

conservation; accessibility; health impact assessment;
renewable energy; climate adaptation; green buildings;
and society. The last two topics were included in theguideline developed for Hong Kong, and then we added
them to the guideline already developed for mainland
China as well.

Sustainable Building Design
Green Building Design and Certification
We are dedicated to adopting international best practices
in the design and construction of our buildings. Our

Jingqing Lane No. 1

first focus has been on enhancing the energy andenvironmental attributes of our buildings. Since 2007,
we have also been committed to achieving a Goldrating or above, under the LEED certification program orequivalent, for all of our new Mainland and Hong Kongproperties. To date, 39 buildings have been certified
as green buildings, including 23 existing buildings and
16 projects under development. The green building
certifications we have attained across our portfolio
include LEED, BEAM Plus, China Green Building Design
Labels and BRREAM. As of December 2023, over 80% of
our overall construction floor area is certified as green

Hang Lung Properties Limited
Sustainability Report 2023

97

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

As part of creating compelling spaces that enrich lives,
we also aim to improve the wellbeing of our building
occupants. We have applied for WELL certification forour new buildings and existing buildings undergoing
major enhancement works since 2019. The WELL
building standard has been developed based on thescience of creating physical and social environmentsthat benefit the health, wellbeing and performance ofbuilding occupants. It covers over 100 features within
ten topics, including indoor environmental quality, water
quality, thermal comfort, and the working environment.

Hang Lung’s Westlake 66 in Hangzhou
Wins Gold Award in "Best New Mega
Development" Category at MIPIM Asia
Awards 2023

In January 2023, we achieved the WELL Health-Safety
Rating (WELL HSR) from the International WELL Building
Institute (IWBI) for 19 properties located in Hong Kongand eight cities in mainland China including all shopping
malls and office towers in our Mainland portfolio. The

Westlake 66 in Hangzhou, Hang Lung’s 11th large-

WELL HSR was first created in response to the COVID-19

scale commercial development in mainland China,

pandemic and consists of operational interventions thathas won the Gold Award in the “Best New Mega

can be made to help mitigate its spread, as well as

Development” category at the MIPIM Asia Awards

the spread of similar diseases. With the pandemic

2023 – the leading regional property awards known

behind us, the WELL HSR seal at Hang Lung’s properties

as the “Oscars of the Asia Pacific real estate world.”

remains a visible indication of confidence and trust that

This affirms the company’s motto, We Do It Well,

the Company has achieved third-party verification forand our relentless pursuit of excellence.

evidence-based measures and best practices in healthand safety.

LEARN MORE >>Among our ongoing efforts, we continue to conduct anindoor air quality test for in each building to monitor and

Healthy Building Design and Certification
Status2025 Target

On track

Obtain China Healthy Building Label or
equivalent in at least one property inmainland China

customers and employees; we review our emergency
preparedness plan from time to time to ensure ourreadiness for another pandemic or for flu season; weare exploring potential enhancements to our employee
benefits (i.e., sick leave days, mental health, vaccination

Obtain WELL Gold certificate or equivalent for
at least one new property in Hong Kong andmainland China
2023 KPI

maintain a good level of indoor air quality for our tenants,

coverage etc.); and we are making efforts to extend
health and wellness activities to our tenants. As of
DelayedDecember 2023, nearly 80% of our total construction
floor area has either been certified with or has applied for
WELL or WELL HSR. The full list of our healthy building
certifications and ratings is provided in Appendix 4.
In 2023, we also conducted a design review for thefeasibility of obtaining the China Healthy Building Labelfor our Hangzhou project, Westlake 66, and target
applying for the certification in 2024.

98

Hang Lung Properties Limited
Sustainability Report 2023

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Accessibility

We conducted a pilot assessment to review the

To enable our spaces to be more inclusive for everyone,

accessibility for people living with disabilities at our

we incorporate accessibility features into building
designs for new projects as well as modify such facilities
at existing buildings during improvement works.
For our new projects in mainland China such asWestlake 66 in Hangzhou, we are incorporating
accessibility considerations into our building design,
including entrances allowing for wheelchair access,accessible parking spaces with enough turnaroundspace (for wheelchair, strollers, etc.), accessible toilets
with enhanced design, lifts with audio broadcasting
systems, and outdoor barrier-free facilities. We have

shopping mall and selected merchant stores at Center
66 in Wuxi. More details can be found in the Pilot
Assessment on Inclusive Shopping Malls section ofthis Report.
Lastly, we are working towards our 2025 target to audit
all our properties and corporate practices to enhancewellbeing and opportunities for persons with disabilities.
We expect further insights and ideas to emerge as we
pursue this target.

Supplier Collaboration

also designed two accessible hotel rooms in the
project to cater to people with disabilities, and further
design enhancements to improve accessibility arebeing developed.
We have also conducted detailed site inspections at
Westlake 66 to identify potential barriers for people
with disabilities. Based on these inspections, we madeaccessibility enhancements including to the accessible
toilets (e.g., adjusting the door width, L-shaped grab bar,height of washbasin and mirror), service desks (e.g.,knee clearance), and lift cars (e.g., mirror-like surfacing,

Status2025 Target

On track

Embrace technology to build a robust
digital platform for assessing suppliers’
ESG performance
2023 KPI

Completed

Continue to develop and refine ways ofassessing suppliers’ ESG performance, andcontinue to develop effective digital solutions
to support such assessment

and grab bars).
In Hong Kong, with reference to the Hong Kong Building

Supplier partnerships are critical for advancing

Department’s statutory requirement in its Design Manual

many of our sustainability priorities. For both

– Barrier Free Access 2008, we conducted a thoroughconstruction and operational suppliers/contractors, ouraccessibility inspection of Gala Place, Mongkok, Grandsustainability engagement with them starts from ourPlaza, Mongkok, the Standard Chartered Bank Building,

pre-qualification process, where we follow the Group’s

Central and Kornhill Plaza, Quarry Bay. Inspection items

sustainable procurement policy to set requirements

included the provision of carparks, access routes, ramps,

and recommendations for sustainable procurement

dropped curbs, steps and staircases, handrails, corridors,

practices, standards and expectations.

lobbies and paths, doors, toilets, signs, illumination,
emergency call bells in accessible toilets, lifts, escalatorsand passenger conveyors, braille and tactile floor
plans, tactile guide paths, accessible public information/
service counters, and visual fire alarm systems. Various
improvement initiatives in each property were identified
and will be implemented in phases.
In 2023, the renovation project at Gala Place andour office rejuvenation project at Gala Place andthe Standard Chartered Bank Building in Hong Kong
will implement some of these improvement measures
including provision of toilets for the disabled.

For example, in 2021 we introduced a framework with
16 ideas to improve the sustainability performance ofour buildings and projects, and most of the ideas require
engaging with appropriate suppliers.
The framework encompasses relevant environmental
concerns (e.g., low embodied carbon materials, energy
efficiency, environmentally friendly design features), andwellbeing concerns (e.g., indoor environmental quality,
employee wellbeing) in our major projects. For projects
under development in Hong Kong and mainland China,
we examine the feasibility of incorporating any of the
16 improvement ideas, subject to scheduling and other
Hang Lung Properties Limited
Sustainability Report 2023

99

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

considerations, and engage suppliers where feasible.
The following are key 2023 updates:

Wellbeing

Sustainable
Transactions

Appendix

Sustainable Project Management
Project Development• Low carbon concrete: we have adopted low carbon

Collaboration with our project consultants andconcrete with pulverized fuel ash (“PFA”) in thecontractors is critical for successfully delivering

Phase 2 development of Center 66 in Wuxi andsustainable properties of excellent quality into ourlow carbon concrete bricks with recycled concrete

portfolio. To enhance sustainability performance inaggregate (“RCA”) at Westlake 66 in Hangzhou toproject development, our internal Project Management

reduce embodied carbon emissions. Please refer to

Manual includes sustainability requirements throughout

Scope 3: Embodied Carbon section in the Climate

the whole project life cycle. These include:

Resilience for more details.
• Low carbon steel: recycling scrap steel can reduce• land/asset acquisition;

the embodied carbon in steel production, and EAF• project planning;is more energy efficient than the traditional blast• supplier and consultant registration;

furnace-basic oxygen furnace (BF-BOF) production• tendering procedure;

process. We have adopted EAF rebar in the Phase 2
development of our Center 66 project in Wuxi, and 228
Electric Road and The Aperture in Hong Kong. In 2023,• performance evaluation; and• construction site safety management.

we joined SteelZero to support our decarbonizationfor embodied carbon. Please refer to the Scope 3:

Project Environmental Management

Embodied Carbon section in the Climate Resilience

Activities at construction sites can result in water, sound,chapter for more details.

and air pollution, as well as demolition and construction• New refrigerants for chillers: in selecting refrigerants

waste. We consider these potentially negative impacts

for chillers, we consider their ozone depletion andthrough detailed environmental impact assessments

global warming potential. Following the sustainableaccording to local laws before construction begins.

refrigerant chiller adopted at the Grand Hyatt Kunming
hotel, the Westlake 66 in Hangzhou development
project included a sustainable refrigerant (i.e., R514A)
requirement in the tender specification.
• Bamboo flooring: we have adopted bamboo flooringin our sales office in the Phase 2 development ofCenter 66 in Wuxi. Bamboo is a sustainable alternative
to timber.
Beyond our 16 ideas framework, we are working with
Sedex, a global membership organization focused onsustainable business practices in supply chains, toengage our key suppliers for development projects (e.g.,main contractors, E&M contractors, fit-out contractors,
design architects) in 2024 on ESG evaluation and due
diligence. Please refer to the Construction SupplierManagement section for more details.

100

Hang Lung Properties Limited
Sustainability Report 2023

To reduce environmental impacts to the surrounding
environment, our construction sites such as Westlake
66 in Hangzhou and Center 66 in Wuxi continued to
implement environmental measures in 2023 including:• use of rainwater and installation of jet nozzles forvehicle cleaning to reduce water consumption;• installation of dust and noise monitoring system;• use of watering cart, spray gun machine, fire water
monitor and installation of sprinklers on the hoarding
to suppress dust emissions;• installation of sound insulation shed for pump truck
and sound insulation walls;• introduction of 5G+ smart construction
technology; and• installation of windproof and dust-proof mesh.

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Westlake 66 in Hangzhou and Center 66 Phase 2

We continue to implement a construction site safety

development in Wuxi worked closely with their main

management system at all our active construction sites

contractors to reuse waste as much as possible. In

in Hong Kong and mainland China, overseen by the2023, Westlake 66 reused waste concrete and broke it

Design and Development, Project Management and Cost

into aggregate for back filling in the basement as theand Controls departments.

hydrophobic layer, to reduce the amount of cobblestoneneeded. The total application area (for the reused waste
concrete) is more than 12,200 m3.

The Group’s Health and Safety Policy stipulates ourcommitment to enhancing health and safety practices atour construction sites. Our Project Management Manual,
which outlines key safety principles and instructions, isreviewed at least once a year and updated as needed.
Safety training is provided regularly to workers on
construction sites, covering topics related to site safety,
use of PPE and use of equipment on site. Frequent site
inspections are conducted to enhance project quality
and site safety.
Safety management at construction sites, including
compliance and reporting, training and safety culture,and technology updates, is reported at the HSS andregular project meetings. We also go beyond industry
norms in appointing designated safety consultants as
independent parties to monitor the performance of our

Back filling the recycled aggregate in Westlake 66 basement

contractors at key projects.
We also look to technology to deploy innovativeand cost-effective solutions for safety management.

To further reduce the carbon footprint of our

Our Construction Innovation Taskforce serves as aconstruction sites, starting from July 2022 we procured

platform to drive innovation in construction safety andrenewable energy at two of our construction sites insustainability. We have fully adopted a Digital Quality

mainland China – Westlake 66 in Hangzhou, and GrandManagement System (DQMS) for all new construction

Hyatt Kunming and Grand Hyatt Residences Kunming.

projects to enhance inspection and defect management

The total green power consumption at Westlake 66

for quality and safety. We have also implemented a

was 1,102 MWh in 2022 and 2,037 MWh in 2023. Over

Smart Site Monitoring System and other initiatives

both years, the green power avoided 1,790 tCO2e of(e.g. tower crane monitoring system) at Mainland

carbon emissions.

construction sites to enhance safety.

Project Safety Management

In June 2023, we introduced a groupwide Safe
Status2025 Target

On track

Provide health and safety training to 100%of main contractors in mainland China andHong Kongto health and safety and enable our employees andcontractors to understand how to work safely in theirrespective roles. A month-long set of activities enabled

Maintain zero work-related fatalities for
employees and contractors
2023 KPI

Production Month to reinforce our strong commitment

all employees to gain a deeper understanding of how toCompletedwork safely in their respective roles, demonstrating thecompany's high regard for and commitment to healthand safety. To engage our employees and contractors
physically and virtually, we arranged for promotional
material to be available at project sites, extensive training
by internal and external speakers, safety inspections

Hang Lung Properties Limited
Sustainability Report 2023

101

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendixand emergency drills involving 4,200 Hang Lung and

The wellness of contractors and employees during the

1,100 contractor’s staff, and an interactive “Safety is My

construction phase, especially over hot summers, is a

Responsibility” Quiz.

key safety and wellbeing issue for us, and we provide
cooling measures as well as on-site training to ensure
health and safety. Measures include:• the distribution of heatstroke prevention andcooling materials (watermelon, cold drinks and heatdissipation items, iced green bean soup, and towels);• provision of physical examinations to workers to
reduce the risk of illness or complications in
hot weather;• installation of water spray systems in working areas;• provision of cooling fans; andOur management and colleagues from different departments on
the Mainland and in Hong Kong were invited to jointly produce asafe production promotion video.

• making covered rest areas with good
ventilation available.

Key Construction Safety Performance Indicators in mainland China
2021

2022

2023

7

6

6

4,721,091

6,388,380

8,747,407

Number of fatalities

0

0

0

Number of accidents

0

0

1

Number of near-misses

1

0

4

Number of accidents per 100,000 man-hours

0

0

0.011

7,082.5

691.5

3,163

2021

2022

2023

2

2

2

203,580

881,970

823,830

Number of fatalities

0

0

0

Number of accidents

0

1

1

Number of near-misses

1

0

2

Number of accidents per 100,000 man-hours

0

0.113

0.121

5,377

8,955

4,078

Number of active construction sites
Total man-hours

Total construction safety training hours

Key Construction Safety Performance Indicators in Hong Kong
Number of active construction sites
Total man-hours

Total construction safety training hours

102

Hang Lung Properties Limited
Sustainability Report 2023

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

In 2023, we maintained zero fatalities at our construction

In 2023, we joined Sedex to enhance our governancesites in mainland China and Hong Kong for theand supply chain management. With Sedex’s support, we

sixth consecutive year, and the overall accident rate

have carried out a supply chain maturity assessment to

has reached nearly zero accidents per 100,000 man-understand our current performance and identified key

hours. We will continue to optimize work processes

improvement areas as follows:

and promote safety awareness among construction
site workers.

Construction Supplier Management
We work closely with our design, construction,and building materials suppliers and contractors on
construction projects to advance our sustainability
agenda. We maintain a master tenderer list for ourcontractors, suppliers and consultants. All potential
vendors are subject to a pre-qualification process
to ensure that they meet expectations in multiple• We need to categorize key suppliers and evaluate
them for their compliance management based oninternationally recognized methodologies.
• Based on the results of our maturity assessment, we
will focus on human rights, labor standards, diversity,
equal opportunities and suppliers' ranking in supply
chain management.
We will work to make improvements in these identified
areas in 2024.

areas including compliance and professionalism, as

We also work with IPE, a Beijing-based non-profit

well as health and safety, sustainability, and green

environmental research organization with a detailedbuilding capabilities.

database of environmental information in China.

Also, we conduct annual reviews of our suppliers toevaluate their overall performance. We also carriedout interviews in 2023 with five main contractors

We have used IPE’s Climate Action Transparency
Index (CATI) methodology to support climate action
performance evaluations throughout our value chain.

from key development projects (e.g., Westlake 66,

For contract works procurement, we had about 100

Center 66 Phase 2, Forum 66 Phase 3, Heartland 66

suppliers in Hong Kong and about 270 suppliers in

Residences, The Aperture) to assess their environmental

mainland China in 2023.

performance including waste, water and energy use
on site.
We also work with recognized third-party organizations
and platforms to support us in construction suppliermanagement, notably including Sedex and the Instituteof Public & Environmental Affairs (IPE).

Hang Lung Properties Limited
Sustainability Report 2023

103

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Sustainable
Transactions

Appendix

Sustainable Operations

Indoor Environmental Quality

Environmental, Health and
Safety Management

Factors such as the use of synthetic building materials,

One of our top priorities is to ensure the safety of
all individuals within our properties. To familiarize ourstaff, tenants and construction units with evacuationand other emergency procedures, we regularly conduct
emergency and fire drills at our premises under our Crisis
Management Protocol.

furnishings, the condition of HVAC systems and air
ventilation, and humidity levels may affect indoor air
quality. We are committed to maintaining good indoor
environmental quality (IEQ) as part of providing ahealthy and comfortable environment for our building
occupants. Six of our Hong Kong properties participatedin the Environmental Protection Department’s Indoor Air
Quality (IAQ) Certification Scheme for Offices and PublicHang Lung values the health and safety of all employees.

Places. The scheme is voluntary and requires annual

Our occupational health and safety management systemthird-party assessment of IAQ of the buildings againsthas been developed to protect all staff across ourthe objectives. The list of IAQ certificates received by ourportfolio. In 2022, we optimized our occupationalbuildings can be found in Appendix 2 – Memberships

health and safety management system for the property

and Charters.

management of our Hong Kong portfolio to meet the
ISO 45001 standard, which we obtained in 2023. We alsoplan to develop an environmental management systemfor our Hong Kong properties in the years ahead.

Another important aspect of IEQ is noise. Sound
reverberation and background noise can make it difficultfor people to hear one another’s speech and detractfrom an otherwise enjoyable experience. Proper acoustic

In 2023, we also obtained the WELL Health and Safety

treatment of internal building finishing materials can

Rating (HSR) for all Mainland properties as well as thehelp foster a high-quality acoustic environment that

Standard Chartered Bank Building (SCBB) in Hong Kong,

enables clear communication and an enjoyable shopping

covering 19 buildings. The HSR evaluation focuses on

experience. As part of our collaboration with LVMH

the following five major areas:

Group, we are developing an acoustic guideline for the• cleaning and sanitization procedures

design of shopping malls and shops to optimize space
speech intelligibility and enhance customer experience.

• emergency preparedness programs

In 2023, we conducted an acoustic baseline survey in• health service resources

the public areas and nine LVMH shops of our Plaza• air and water quality management• stakeholder engagement and communication
We received full scores in “Cleaning and Sanitization
Procedures” and “Air and Water Quality Management”
for all 19 properties, demonstrating our dedication tocreating a healthy and safe environment.

104

Wellbeing

Hang Lung Properties Limited
Sustainability Report 2023

66 property in Shanghai. In 2024, we will look foran opportunity to implement an acoustic pilot projectat a selected LVMH shop undergoing renovation. The
effectiveness of the applied acoustic measures on the
new shop design will be evaluated and help inform thedevelopment of our shared acoustic guideline.

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Quality Water Supply Scheme for Buildings

Similar to our construction supplier engagement

13 Hong Kong properties have been validated underapproach, we are working with Sedex and IPE to

the Water Supplies Department (WSD) Quality watersupply scheme for buildings – Fresh Water. This
voluntary scheme was established in 2015 to ensurehigh-quality potable water is being used in buildings byidentifying potential contamination risks in the internal
plumbing system and recommending control measures.
Three levels of recognition certificates are available,with validation every two years. The list of certificatesawarded to Hang Lung’s properties is mentioned inAppendix 2. On the Mainland, we monitor the quality ofwater periodically following local regulations.

Operational Supplier Management

advance sustainable procurement and operational
supplier management, especially in due diligence andgovernance. With Sedex, we will be focusing on key
operational suppliers' engagement, and complianceevaluation on social and governance issues. With regard
to IPE, we use its Green Supply Chain Corporate
Information Transparency Index (CITI) methodology
to assess our supply chain transparency index. We
also leverage IPE’s suppliers’ record database (e.g.,
environmental supervision records) to review thecompliance of selected operational suppliers.
Furthermore, we have engaged an external consultant
to work with our procurement team and internal

We maintain close communication with a wide range

key stakeholders to refine our current sustainableof suppliers including goods and services providers

procurement policies in light of best practices.

for corporate services, property management providers
such as cleaning, waste management, electrical andmechanical suppliers, security service providers, andIn 2024 we will deepen our engagement with
key operational suppliers to foster a collaborativeminor works contractors.

approach to environmental compliance, promotion,

Starting in 2022, all new suppliers undergo an ESG

our goal is not only to meet industry standards

review at the registration stage. We also conduct

but also to help establish elevated benchmarks for

ESG reviews with our existing suppliers upon contract

sustainable sourcing.

renewal and at other times.

and information disclosure. Through these initiatives,

In terms of goods and services procurement, in 2023

We continued to work with our suppliers to ensure their

we had about 2,400 suppliers in Hong Kong andalignment with our Code of Conduct for Contractors,

about 6,500 suppliers in mainland China. About 90%

which sets out our expectations for suppliers coveringof our procurement was sourced locally to minimize

compliance with laws and regulations, integrity, healththe environmental footprint from transportation and toand safety, child or forced labor, environmental

benefit local communities.

conservation and data protection. Suppliers’ records
and practices are periodically examined to determine
whether they may present any sustainability risks to theGroup and whether any risk mitigation measures should
be taken.

Hang Lung Properties Limited
Sustainability Report 2023

105

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Tenants

Sustainable
Transactions

Appendix

Tenant Partnerships
Status2025 Target

We have two major initiatives related totenant partnerships:

On track

Sustainability Partnership with LVMH Group

100% of leases incorporate
sustainability provisions
2023 KPI

Wellbeing

In October 2022, we embarked on a first-of-its-kindCompleted

Incorporate sustainability provisions in fitout
manuals for all Hong Kong projects

sustainability partnership with LVMH Group to accelerate
sustainability progress in real estate and retail inmainland China to the end of 2025. The collaborationspans Hang Lung’s portfolio in seven cities and 26 LVMH
brands that occupy more than 90 retail spaces with aTenant Handbook and Fit-out Guide
We rolled out a Tenant Handbook and Fit-out Guide
revision plan over the last two years. The Tenant
Handbook amendments were first introduced to officetenants at Plaza 66 and Grand Gateway 66 in Shanghai
in 2021, and then extended to both office and retaillettable floor area in excess of 28,000 sq. m.
Building on the success of our Real Estate & Climate
Forum together in November 2022, we jointly published
our Common Charter in March 2023, outlining a setof 20 innovative actions for implementation in 2023
and beyond.

tenants at all Mainland properties, with the Fit-out Guide
included, in 2022. We also incorporated sustainability
principles into our Tenant Fit-out Guide in Hong Kongin 2023.
Both our Tenant Handbook and Fit-out Guide include
five sustainability areas for collaboration – our fourpriorities of Climate Resilience, Resource Management,
Wellbeing, and Sustainable Transactions – and a fiftharea, Communication and Progress Reviews.
Among key areas for tenant cooperation, we encourage
our tenants to install energy sub-meters to measureelectricity use for HVAC, lighting, and other small
equipment systems (such as computers, photocopiers,
and televisions) and to share energy, water, and waste
data with us to improve operating practices. We also
encourage tenants to work with us in key areas
such as community services, wellbeing, sustainableprocurement, and sustainable cleaning. Lastly, we areincorporating sustainable food principles for our F&B
tenants and encouraging them to adopt practices that
promote healthy and environmentally friendly operations.
Summary of key actions in the Common Charter 2023

106

Hang Lung Properties Limited
Sustainability Report 2023

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

We have been working to advance these 20 actions

Wellbeing

Sustainable
Transactions

Appendix

Changemakers Program for All Tenants

under our four thematic priorities of Climate Resilience,

We are keen to extend the spirit of collaboration with

Resource Management, People and Wellbeing, andall our tenants. We launched our Changemakers: Tenant

Governance. We will provide a detailed update of ourPartnerships on Sustainability Program in December

progress for all 20 actions, as well as our plans for

2023, a customized sustainability program applicable to2024, in the second edition of our Common Charter toall tenants, including office, retail, F&B, and hospitality

be published in Q2 2024.

sectors across Hong Kong and mainland China.
Our Changemakers Program is a collaborative initiative
addressing sustainability challenges that affect our
properties, occupants, and communities with the aim of
reducing carbon emissions, minimizing waste, advancing
circularity, and enhancing community wellbeing. We areaiming to create meaningful sustainability impacts while
recognizing the commitments and achievements of ourtenants in environmental and social sustainability.
The Changemakers Program offers two tiers ofrecognition — Foundational and Advanced, providing
flexibility in terms of tenants’ ambitions. Tenants whocomplete at least six out of eight specified sustainability“Step-Up for Good” city walk event in Shanghai, which featured
50 volunteers from both groups and 50 grassroots children

actions in either tier in 2024 will enjoy a rangeof benefits.

In addition to working to advance our common actions,sharing sustainability ideas with the broader community
is also an important component of our partnership. For
example, we joined two panel discussions in Shanghai
together with two LVMH brands to discuss biodiversity
and circularity in real estate and retail. We were also
honored to join LVMH Group’s LIFE 360 Summit in Parisin December 2023, where we shared highlights of ourpartnership with the audience.
We will organize the second Real Estate & Climate
Forum in April 2024 in Shanghai to reengage with ourChangemakers Program – Tenant Partnerships
on Sustainability

stakeholders. In addition to publishing the second editionof our Common Charter in Q2 2024, we will report on
the progress and learning of our partnership in our next
sustainability report.

Hang Lung Properties Limited
Sustainability Report 2023

107

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Sustainability E-newsletter for Tenants

Customers

To establish an effective and transparent communication

Maintaining Quality Standards

channel with our tenants, in December 2023 welaunched Changemakers, a quarterly e-newsletterfocused on sustainability. The newsletter keeps our
tenants informed about our sustainability initiatives,
progress, and achievements and promotes sustainablebusiness operations while encouraging tenants and theiremployees to make sustainable choices. Additionally,
we plan to feature tenants' sustainable practices
as case studies, allowing them to showcase bestpractices and share their experiences with the wider
tenant community.

Appendix

We are committed to putting customers first byproviding them with products and services that meetthe highest standards. Our operations manuals set
out standard procedures for managing our Hong Kongand mainland China properties. Annual inspections are
conducted to identify any defects or deficiencies inbuilding facilities and electrical and mechanical systems.
To avoid a sudden breakdown of services and to ensure
safety for building occupants, we also undertake regular
maintenance of facilities such as HVAC systems, fireservices systems, elevators and electrical systems.
During major renovations of existing properties led by
our Asset Assurance and Improvement Department, andin close collaboration with relevant departments, thedesign, layout and circulation of the malls and offices are
rejuvenated to improve customer experience and achievea timeless design quality. Most works carried out by
contractors have a one to two-year defects liability period(DLP) to ensure their quality, and major equipment has awarranty of 5-10 years on top of the DLP. Improvements
to existing systems, such as upgrading closed-circuit
television (CCTV) systems from analog to digital andexpanding their storage capacity, were completed atForum 66, Riverside 66 and Parc 66.

Changemakers - our quarterly sustainability e-newsletterfor tenants

We continue to maintain high standards of hygiene byrevamping projects and arranging for frontline staff toattend regular training on improving service provision.
We also monitor the service quality of cleaning service
providers through daily checks and monthly inspections.

Enhancing Customer Experience
We continue to enhance customer experience andloyalty throughout our operations in mainland China
and Hong Kong. HOUSE 66 is a customer relationshipmanagement program spanning all our properties inmainland China where members can earn points andenjoy a variety of bespoke privileges. The programis active across ten malls in eight cities. In 2023,
HOUSE 66 completed a brand visual refresh andupgraded a selection of its member benefits andprivileges. To support our members pursuing a moresustainable lifestyle, we encouraged greener purchases
while offering a larger selection of sustainability-inspired
gifts for redemption.

108

Hang Lung Properties Limited
Sustainability Report 2023

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

In Hong Kong, the hello Hang Lung Malls Rewards

Measuring Customer Satisfaction

Program continued to expand its member base andFeedback is vital for us to understand customer

garnered support from over 600 tenants across seven

expectations and facilitate continual improvement. Our

malls and our Central portfolio. Through the Hang

ongoing customer survey tracks both our Net Promoter

Lung Malls app, we continue to enhance customer

Score (NPS) and qualitative feedback on customer

experience through close collaboration with our tenants,

touchpoint areas through verbatim analysis. Using

creating extraordinary experiences for shoppers withword-by-word feedback from respondents to create adiverse tastes and lifestyle needs. Our hello members are

statistical summary, it provides a clear and quantifiable

able to enjoy time-limited offers ranging from shopping

picture of customer sentiment. In 2023, we havediscounts and sweet surprises to gifts with purchases,

revamped the questionnaire to evaluate our performanceacross the portfolio. Members are also pampered

more comprehensively over the attractiveness of ourwith access to a variety of unique activities, such as

trade mix, marketing mix and service standards. Our

handicraft workshops at Peak Galleria, members-only

overall NPS score in Mainland was 61.3* points, on asales events and previews, and new shop openings.

par with the same period in 2022.

In 2023, we launched two initiatives to promote*Survey conducted from January to December 2023,

sustainable living and circular fashion to our members.

interviewing over 33,000 customers on the Mainland.

From September to December 2023, we offered green
rewards to our members when they participated in
the recycling campaigns of our selected Fashion andAccessories tenant partners. In November 2023, welaunched the “Old Clothes • New Life” campaign, a threemonth pilot takeback program partnering with Redress
Hong Kong. Consumers could give back any brand ofclothes for reuse, resale and recycling/downcycling by
Redress, making it easier for our members to play theirpart in helping to develop a circular fashion economy.

In response to customer complaints, standardized
complaint handling procedures are in place to ensure
customer feedback is addressed in a timely andconsistent manner. Complaints are logged, managed
and investigated by dedicated staff within an appropriate
timescale, and close communication with the customer
must be maintained throughout the whole process.
Property management services staff are required to
study various complaint cases regularly to strengthen
their problem solving and complaint handling skills.
Regular service level training is provided to our property
management services staff to ensure we provide highquality service.

Written Complaints
Hong Kong

Mainland China

Interim reply within 3
working days

Formal reply within 7
working days

Formal reply within 14
working days

Hang Lung Properties Limited
Sustainability Report 2023

109

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

impact of the 2023 66 Brand campaign, and found that
decorative materials and guests’ transportation were
opportunities for reducing our environmental footprint.

Hang Lung People’s Commitment
to Customer-Centricity
We introduced our Customer Engagement Initiatives(CEI) this year with the aim of enhancing ourservice standards and providing customers withexceptional service experiences while adhering toCustomer centric event “BE MY HEARTLAND” at Heartland
66, Wuhan

our principle of “customer-centricity.” Our colleagues
shared their experiences participating in the

In 2023, our shopping malls on the Mainland curated

CEI program.

several sustainability-related marketing campaigns
together with our tenants and partners. To celebrate

LEARN MORE >>mois Franco-Chinois de l’Environnement (French Chinese
Environmental Month), Heartland 66 in Wuhan jointly
organized a sustainable market with Wuhan Carbon

Sustainable Marketing

Inclusion, and the French Consulate in Wuhan. We
Status2025 Target

On trackin return for their greener actions, such as bringing
their own bags and travelling by public transportationor bicycle. We also organized upcycling workshops

100% of marketing events evaluated for theirsustainability impacts
2023 KPI

offered green rewards to our HOUSE 66 members

and green talks that offered our customers in Wuhan
Completed

Evaluate the sustainability impacts of 100% of
centrally led marketing eventsa hands-on experience of circularity and an in-depth
conversation about low carbon lifestyle.
Following the successful launch of “Green Circle,” thesustainability campaign at Plaza 66 in Shanghai last year,
we organized a five-day sustainable market event called

We have a sustainable marketing guideline for all“Rooftop Oasis,” transforming the sixth floor garden into

properties. The guideline defines the principles foran oasis with bamboo as the theme. There were art

sustainable events and considerations for arranging

installations using bamboo, a sustainable material thatthem, covering marketing promotion, venue set-up,

can be used in the built environment and in textile

waste management and green transportation. The

products. In collaboration with our tenants, we presented

guideline also includes sustainable procurement

to our customers a variety of green and low-carbon

recommendations for marketing products and materials,

products and showcased a lifestyle that integrates

and defined metrics (including electricity consumption

outdoor leisure, eco-friendliness, entertainment, dining,and carbon footprint) to measure an event’s

and pet interactions.

sustainability impact. We measured the sustainability

110

Hang Lung Properties Limited
Sustainability Report 2023

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

In August 2023, Grand Gateway 66 in Shanghaiorganized the "Stop and Go" themed art exhibition to
encourage people in the community to slow down theirpace and have a break from their busy daily lives. In
this exhibition, we integrated sustainability concepts invarious ways. All installations and facilities in this "Stopand Go" themed exhibition were made of environmentallyfriendly materials that are toxic-free and degradable.
We invited industry experts to share stories about bird
collisions and protecting our ecological habitat in the city,and to offer a new vision for sustainable living.
Rooftop Oasis at Plaza 66 in Shanghai

Grand Gateway 66 in Shanghai cooperated with Disney
China to launch the first “Pixar Fluffy Festival” eventwith fluffy toys decorating the mall during the 2022
Christmas period. After the event, the fluffy toys usedas decorations were given a second life after strictdisinfection and packaging. With greetings speciallypenned by HOUSE 66 members on postcards, the toys
were donated to underprivileged children in Shanxi inearly 2023, as a way for customers to share the festive
joy and warmth of the season with the wider community.
"Stop and Go“ themed art exhibition at Grand Gateway 66
in Shanghai

Celebrating Easter, Peak Galleria in Hong Kong organizedan Egg-citing Green Fest with a series of green
handicraft workshops to create home decorations likeeggshell planters, or useful botanical printing tote bags.
hello members could redeem workshop quotas withdesignated spending at Peak Galleria.

Fluffy toys and the postcards written by HOUSE 66 members
brought winter warmth to underprivileged children

Hang Lung Properties Limited
Sustainability Report 2023

111

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Sustainable
Transactions

Appendix

Protecting Customer Data Privacy>> Next Steps >>Our business involves many direct and indirect daily

We are working to develop an increasingly systematictransactions with our tenants and customers. Ethicaland proper handling of customers' personal data
and business information is fundamental for building
and maintaining trust among stakeholders. Data leaks
and breaches could have a serious impact on anorganization's reputation and business relationships.
The Group ensures that its operations comply withapplicable laws and regulations regarding personal data.
Measures regarding the collection, usage and protectionof personal data, and for data security management are
in place. Our handling of the personal data of our tenants
and customers in Hong Kong is governed by our Privacy
Statement to ensure it is in compliance with the Personal
Data (Privacy) Ordinance. We also have policies in placefor our operations in mainland China to comply with
relevant personal information protection legislation in the
Mainland. With the Personal Information Protection Law
of mainland China coming into effect in 2021 followedby various detailed implementation rules, guidelines andstandards, the terms and conditions and privacy policy
for our HOUSE 66 program were updated accordingly
to ensure compliance with mandatory requirements.
In particular, before personal information is collected
directly from customers in mainland China, consent
and/or separate consent will be obtained, as the casemay be. All such measures, rules and policies will be
reviewed from time to time to ensure compliance withapplicable laws and regulations.
We have set up a Data Security Management Committee
as the decision making body for the data security
management of the Group, which takes the lead in
overall governance of data security matters and isalso responsible for monitoring any potential breachof relevant laws and regulations. There were no
substantiated complaints received concerning breachesof customer privacy and losses of customer data during
the reporting period.

112

Wellbeing

Hang Lung Properties Limited
Sustainability Report 2023

approach to managing and improving our environmental,social and governance performance along our value
chain. As part of this effort, we will continue to workwith relevant stakeholders and technology providers to
improve the data we need to assess our performanceagainst key metrics. We will collaborate with like-mindedorganizations to provide clearer market signals to
suppliers regarding our expectations and ambitions. We
will learn from the first year of our tenant partnerships
program on sustainability, identify opportunities for
improvement, and consider potential pathways to scaling
the program. And we will continue dialogues withfinancial institutions as we explore ways to leverage
capital more effectively to accelerate our ESG progress.

APPENDIX

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Appendix 1 - Key Sustainability Trends
Key Trends and Synopsis

Relevance to Our BusinessClimate risks
Increased extreme climate events, such as heatwaves,droughts and floods caused by climate change, have alreadyaffected billions of people around the world.
The World Economic Forum points out that the lack ofdeep, concerted progress on climate mitigation targets
has exposed the divergence between what is scientificallynecessary to achieve net zero and what is politically feasible.
The competing demands for public and private-sector
resources to address other crises may reduce the speed andscale of climate mitigation efforts.

According to the International Energy Agency (IEA), thebuilding and construction sector accounts for nearly 40%
of energy and process-related greenhouse gas emissions
globally. Reducing carbon emissions in the construction
and operation of buildings is crucial to achieving net
zero emissions.
China, has outlined in its 14th 5-year national plan
clear policy directions and medium-term targets todirect emissions reduction efforts at provincial and citylevels nationwide.
Decarbonization is both a matter of strategic importancefor our business – an opportunity if done well, a risk if not– and the right thing to do for the planet. We publishedour net zero targets validated by SBTi in January 2023 tohelp guide our emissions reduction investments and efforts
across our operations and value chain. In addition, to meetwith expectations from investors and other stakeholders, in2019 we adopted TCFD’s recommendations in disclosing
how we govern and manage climate-related risks andopportunities, and we are committed to improving thequality of our climate-related disclosures annually.

Please read more about our work in Climate Resilience andAppendix 8.
Productive employment and decent work for all
These are crucial for socioeconomic development andstability. Quality of life and social mobility might be negatively
impacted by structural deterioration of standards of workor work prospects arising from rising unemployment andunderemployment, erosion of workers’ rights amid economic
downturn and restructuring, job displacement due toautomation, geographical or industry mismatches between
labor supply and demand, or stagnating wages amid a
global cost-of-living crisis. In addition, a continued shortagein specific labor markets, especially in more developed
economies, may exacerbate wage inflation and slow down
productivity and economic development.

The ability of Hang Lung to compete and thrive in an
increasingly complex market environment hinges on how
well we are able to attract, retain and develop the righttalent. Employee attraction, retention and development areamong the top issues considered to be essential to ourfinancial performance and longer-term enterprise value.
A strategic approach to plan, manage and develop thecomposition and competence of our workforce amid
the increasingly rapid pace of technological development
and changing market environment is essential to remaincompetitive. Our employment and procurement policies andnorms have a direct impact on the potential for decent workfor our employees and suppliers.
Please read more about our work in Wellbeing.

114

Hang Lung Properties Limited
Sustainability Report 2023

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Key Trends and Synopsis

Wellbeing

Sustainable
Transactions

Appendix

Relevance to Our Business

Biodiversity
Human activities have profoundly altered most terrestrial
ecosystems. As reported by the United Nations, 10 million
hectares of forest are being destroyed each year andaround 40,000 species are documented to be at riskof extinction over the coming decades. Human activities
are also endangering marine ecosystems and affecting
the livelihoods of billions of people. Continuing ocean
acidification, rising ocean temperatures and overfishing arethreatening marine species and negatively affecting marine
ecosystem services.
The World Economic Forum points out that over half of theworld’s economic output is estimated to be dependent on
nature to some extent. Biodiversity and climate change are
inextricably linked – a failure in one sphere will cascade
into the other. The collapse of ecosystems would havefar-reaching economic and societal consequences. These
include increased occurrence of diseases, a fall in crop yields
and nutritional value, growing water stress exacerbating
potentially violent conflict, loss of livelihoods dependent onfood systems and nature-based services like pollination, andever more dramatic floods, sea-level rises and erosion fromdegradation of natural flood protection systems like water
meadows and coastal mangroves.

Property development and operations can have significant
negative impacts on the environment through pollution,
land use changes, deforestation, and destruction of natural
habitats. To protect natural habitats and biodiversity,
we aim to minimize the environmental impacts of ourdevelopments through responsible planning and design,
and responsible procurement practices favoring products
and raw materials from sustainable sources and with lower
ecological footprints.
Financial institutions are paying attention to biodiversity
loss. The Taskforce on Nature-Related Financial
Disclosures (TNFD), established in 2021, has publishedits recommendations in September 2023, providing a
global framework for organizations to report on risks frombiodiversity loss and ecosystem degradation. We will look
into taking steps to disclose our nature-related risks in linewith the TNFD recommendations.
Please read more about our work in
Resource Management.

Environmental pollution and waste
Environmental pollution is highly connected to thedegradation of ecosystems and biodiversity loss andaffects human health. According to the United Nations,ambient air pollution from power generation, traffic, industry,
waste burning and residential fuel combustion resulted
in 4.2 million deaths in 2019. As urbanization increases,
the world’s cities are struggling to cope with mounting
problems of municipal solid waste such as food waste,marine litter and proliferation of plastic waste, misuse, overextraction and contamination of freshwater supplies, andpoor management of freshwater and wastewater.
Unsustainable patterns of consumption and production areroot causes of the triple planetary crises of climate change,
biodiversity loss and environmental pollution. The United
Nations calls for governments, enterprises and all citizens towork together to improve resource efficiency, reduce waste
and pollution, and shape a new circular economy.

Public awareness and regulatory requirements in Hong
Kong and other cities in mainland China concerning waste
management are increasing. With the implementation of
the Municipal Solid Waste Charging scheme by the Hong
Kong Government from August 2024, as an owner andoperator of commercial real estate with office, retail andfood and beverage tenants, providing adequate facilities
and implementing robust programs to support our tenants
and visitors in waste reduction and recycling practices arerising priorities for us.
In addition, by applying circular principles in procurement
decisions and the design, construction and operations ofbuildings, we can reduce operational and embodied carbon
emissions and other types of pollution, as well as reduce
our dependency on virgin raw materials, reducing ourplanetary impact and making us more resilient to potential
supply chain disruptions.
Please read more about our work in Resource Management
and Sustainable Transactions.

Hang Lung Properties Limited
Sustainability Report 2023

115

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Key Trends and Synopsis

Wellbeing

Sustainable
Transactions

Appendix

Relevance to Our Business

The health and wellbeing
Health and wellbeing of people globally were gravely
affected by the COVID-19 pandemic. The pandemic disrupted
essential health services, triggered an increase in theprevalence of anxiety and depression, lowered global life
expectancy, and suspended two decades of work towards
making health coverage universal. It also amplified emerging
risks to physical and mental health, including antimicrobial
resistance, vaccine hesitancy and climate-driven nutritional
and infectious diseases. Mental health issues have also
been exacerbated by increasing stressors experienced during
the pandemic and their lingering effects, such as violence,poverty and loneliness.
According to the World Economic Forum, more frequent
and widespread infectious disease outbreaks amidst a
background of chronic diseases over the next decade risks
pushing exhausted healthcare systems to the brink of failurearound the world.
As the disease burden grows, the population ages in many
cities in developed economies, and innovation widens thescope of what medicine can treat, inexorable demand for
healthcare is running up against chronic capacity challenges
in healthcare systems. The World Health Organization (WHO)predicts a global shortfall of 15 million health workers
by 2030.

As the World Green Building Council (WGBC) has noted,
there are few issues relating to human health, wellbeing
and quality of life that are not impacted, directly or
indirectly, by the attributes of our built environment. The
WGBC introduced a Health and Wellbeing Framework in
November 2020, which outlines principles for a healthy,
sustainable built environment, providing a framework to
guide the building and construction sector in addressing
its responsibility regarding the quality of our indoor
environment, our mental and physical health, and influenceson our behavior. It also emphasizes the importance ofembracing the people and environment involved at allstages of the building lifecycle.
The building and construction sector, including Hang Lung,can play an active role in protecting and enhancing thehealth and safety of its stakeholders – from protecting thehealth and safety of construction workers, to preventing
illness and promoting wellness for all, to minimizing
adverse impacts on the environment through how wesource materials, construct and operate our buildings.
Please read more about our work in Wellbeing andSustainable Transactions.

Some health systems are seeing productivity declines as
experienced employees leave due to exhaustion, burnout
and concerns about staff and patient safety. Skills andinfrastructure gaps undermine capacity further as staff
become overwhelmed by challenges for which they are notadequately equipped or supported to solve, leading to morestrikes over pay and staffing levels.
Geoeconomic fragmentation
Geoeconomic fragmentation is creating significant
headwinds for global cooperation on important agenda
topics for sustainable development, including climatechange mitigation and adaptation, technology development
and the energy transition, and innovation towards a
circular economy.
The World Economic Forum notes that economic warfare,with increasing clashes between global powers, will
drive corresponding competition in economic policies.
Inefficiencies in production, supply chain disruption andrising prices are becoming more likely. Food, energy andsecurity risks are also expected to be amplified.

116

Hang Lung Properties Limited
Sustainability Report 2023

Geoeconomic fragmentation could entail supply chain
disruption, instabilities in the policy and socioeconomic
environment for businesses, and uncertainties clouding
business and investment decisions.
A rigorous approach to foresight and preparedness is vitalto bolster business resilience to longer-term risks and charta path forward for sustainable development.
Please read more about our approaches to enterprise risk
management in Sustainability Governance, our work in
improving resource productivity in Resource Management,
and in building a more resilient supply chain in
Sustainable Transactions.

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Key Trends and Synopsis

Wellbeing

Sustainable
Transactions

Appendix

Relevance to Our Business

Diversity and inclusion
Diversity and inclusion has received increasing attention asa global social and economic issue. Actual or perceived
inequalities in opportunities will erode social cohesion andfracture communities leading to declining social stability,
wellbeing and economic productivity. Digital inequality isa fast-emerging form of exclusion. The rapid pace ofdigitalization and technological advancement is likely towiden unequal access to resources and opportunities foreducation and livelihood.
The International Labour Organization notes that there
are significant correlations between greater diversity andinclusion and improvements in employee and enterprise
performance. A high level of diversity and inclusion in
workplaces can lower costs such as turnover and sickness
absence, and add value through higher levels of employee
productivity, creativity, innovation and engagement, andimproved decision making. There is also growing pressure
for enterprises to take constructive actions on diversity andinclusion, including from employees, prospective employees,
investors, customers, and legal and policy frameworks. With
regard to gender equality, the United Nations reports thatthe world is not on track to achieve gender equality by
2030. Women accounted for less than 40% of employment
worldwide and 28% share of managerial positions worldwide
in 2020. In Hong Kong, the Hong Kong Stock Exchange has
imposed new requirements to issuers, aiming to promote
gender diversity at the board level and gender ratios in
the workforce.

We recognize that high levels of diversity and inclusion
are associated with greater innovation, productivity
and performance, talent recruitment and retention, andworkforce wellbeing.
Through policies and programs implemented across ourworkplaces, we endeavor to foster an inclusive work
environment. We also recognize the valuable contributionof all employees, regardless of gender, age, disability, race,or marital status, and believe that an inclusive workplace
will aid talent recruitment and boost employee satisfaction
and productivity.
In addition, we strive to work with our stakeholders tofoster equality and diversity across our community andvalue chain. Inequality erodes social cohesion, diminishes
human potential, and might lead to declining social stability
and economic development. We also have a community
program to cultivate future women leaders in both mainland
China and Hong Kong.
Please read more about our work in Wellbeing.

Cybersecurity
Rapid advancements in technologies raise complex
challenges for information privacy and cybersecurity. With
the development of new tools and technologies, there are
reduced risks and costs in committing cybercrimes, creating
new opportunities for criminal networks. With the use ofgenerative AI, phishing attacks can be accurately translated
into multiple languages with ease. These technologies
present substantial risks to individuals and businesses.

Our business operations involve many direct and indirectinteractions with our employees, suppliers, tenants,
customers and other business partners. Protecting thecompany’s networks and systems against cyber threats,
including phishing attacks, malware and ransomware,is important to safeguard our business sensitive
information and personal data of our stakeholders fromunauthorized access.
Cybersecurity is one of the principal risks monitored
under our ERM framework. In February 2023, the Groupalso established a Data Security Management Committee
to manage our overall data security management andgovernance, including data security management, dataclassification and categorization, data retention andhandling of data security incidents.
Please read more about our work in
Sustainability Governance.

Hang Lung Properties Limited
Sustainability Report 2023

117

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Key Trends and Synopsis

Wellbeing

Sustainable
Transactions

Appendix

Relevance to Our Business

Misinformation and disinformation
Misinformation and disinformation refer to inaccurate
or misleading information that is spread (deliberately
or otherwise) to media networks. Advances in artificial
intelligence models enable synthetic content and false
information to be easily created and spread to the public.
False information may erode public trust. Reduced trust fromthe general public may lead to unnecessary anxiety or evenpanic and undermine social stability. According to World
Economic Forum’s Global Risk Report 2024, over the next
two years, misinformation and disinformation may disrupt
electoral processes in several economies. Also, perceptionsof reality are likely to become more polarized, affecting
the public discourse on issues related to public health,social justice, and public confidence in institutions andorganizations of various kinds.

118

Hang Lung Properties Limited
Sustainability Report 2023

The widespread dissemination of misinformation anddisinformation relating to our industry, peers and ourcompany could impact on our overall business environmentand our brand reputation. The Group has a risk
mitigation strategy to address the growing threatsof disinformation and misinformation. We maintainregular and authentic two-way communication with our
stakeholders via various engagement channels. A crisis
management and communication plan is in place toallocate appropriate resources and predefined actions forcrisis management to address incidents related to the
spread of falsified information.
Please read more about our work in
Sustainability Governance.

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Appendix 2 - Memberships and Charters
The Group actively supports government bodies, sustainability organizations and industry associations that havepositive impacts on society. The following table summarizes our memberships and charters in 2023.

Partner

Nature of Membership/ Charter

Environmental
Hong Kong Special Administrative
Region Government

Carbon Reduction Charter and Carbon Audit Green Partner(Environmental Protection Department)
Carbon Neutrality Partnership (Environment Bureau)
Charter on External Lighting (Environment Bureau)
Energy Saving Charter and 4T Charter (Environment Bureau and Electricaland Mechanical Services Department)
Food Wise Charter (Environment Bureau)
Glass Container Recycling Charter (Environmental
Protection Department)

Business Environment Council

Council Member
BEC Net-zero Carbon Charter
Power Up Coalition Member

Civic Exchange and Walk 21

International Charter of Walking

The Green Earth

Green Earth Companion (Air)

Hong Kong Green Building Council

Platinum Patron Member

World Business Council for
Sustainable Development

Manifesto for Energy Efficiency in Buildings

WWF Hong Kong

2022/23 Corporate Membership – Silver‘No Shark Fin’ Pledge

GRESB

GRESB Participant Member

Green Council

Sustainable Procurement Charter – Established Member

Urban Land InstituteAsia Pacific Corporate Partnership and Greenprint Programs

United Nations Global Compact

Participant

Hang Lung Properties Limited
Sustainability Report 2023

119

Introduction

Our Sustainability
Strategy

Climate Resilience

Partner

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Nature of Membership/ Charter

SocialHong Kong Special Administrative
Region Government

Joyful@Healthy Workplace Charter (Department of Health andOccupational Safety & Health Council)
Talent-Wise Employment Charter (Labour and Welfare Bureau, incollaboration with the Rehabilitation Advisory Committee, the Hong Kong
Joint Council for People with Disabilities and the Hong Kong Council ofSocial Service)120

Agency for Volunteer Service

Group Member

Asia Society

Asia Corporate Member

Business and Professionals Federation ofHong Kong

Corporate Member

Business for Societal Impact (B4SI)

MemberChina Real Estate Developers andInvestors Association

Executive Member

Employers' Federation of Hong Kong

MemberEqual Opportunities Commission

Racial Diversity and Inclusion Charter for Employers signatory

Hong Kong Institute of Human
Resource Management

Corporate Member

Hong Kong Management Association

Charter Members

Hong Kong Public Relations Professionals’
Association Limited

Corporate Member

The Chamber of Hong Kong Listed Companies

Full Member

The Hong Kong Institute of Directors

Member

The Hong Kong Construction Association Ltd

Member

The Real Estate Developers Association ofHong Kong

Corporate Member

Hong Kong Green Finance Association

Corporate Member

The Hong Kong Jockey Club Charities Trust

Charter for Age-Friendly Shopping Malls of Jockey Club Age-Friendly City
Project – Peak Galleria

United Nations Children’s Fund (UNICEF)

Breastfeeding Friendly Workplace Certificate of Appreciation – Peak
Galleria, Amoy Plaza, Kornhill Plaza

United Nations Children’s Fund (UNICEF)

Breastfeeding Friendly Premises (Gold Label) – Kornhill Plaza, Peak
Galleria, Amoy Plaza

Hang Lung Properties Limited
Sustainability Report 2023

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Energy Saving Charter
The following properties have committed to the Energy Saving Charter and the 4T charter under the Environment andEcology Bureau of the Hong Kong Government:
Shopping Mall: Amoy Plaza, Fashion Walk, Grand Plaza, Hollywood Plaza, Kornhill Plaza, Peak Galleria
Office Building/Commercial Building/Industrial Building: 1 Duddell Street, 9 Wing Hong Street, Baskerville House, Gala
Place, Grand Centre, Grand Plaza Office Tower One & Two, Hanford Commercial Centre, Hang Lung Centre, Hollywood
Plaza Office Tower, Kornhill Plaza Office Tower, Printing House, Standard Chartered Bank Building

Energywi$e Certification
The following properties have obtained Energwi$e certification under the Hong Kong Green Organisation Certification:
Basic Level: Burnside Villa

Wastewi$e Certification
The following properties have obtained Wastewi$e certification under the Hong Kong Green Organisation Certification.
Good / Excellence Level: Fashion Walk, Hang Lung Centre, 1 Duddell Street, Printing House, Baskerville House, Peak
Galleria, Grand Plaza, Grand Centre, Hanford Commercial Centre, Amoy Plaza, Amoy Gardens, Hollywood Plaza, Gala
Place, Kornhill Plaza, Kornhill Recreation Club, The Summit, Burnside Villa, Kornhill Apartments, 9 Wing Hong Street

Quality Water Supply Scheme for Buildings - Fresh Water Certification
The following properties have obtained Quality Water Supply Scheme for Buildings – Fresh Water certification under the
Water Supplies Department.
Gold Certificate (Comply scheme standard > 6 years): Grand Centre, Hollywood Plaza, Amoy Gardens
Silver Certificate (Comply scheme standard between 4 < years < 6): Gala Place, One Grand Tower, Two Grand Tower
Blue Certificate (Comply scheme standard < 4 years): Hanford Commercial Centre, Standard Chartered Bank Building,
Hang Lung Center, Peak Galleria, Kornhill Plaza, Kornhill Apartments, The Summit

IAQ Certification
The following properties have received IAQ certificates under the Environmental Protection Department.
Excellent Class: Standard Chartered Bank Building, Grand Centre
Good Class: Peak Galleria, Grand Plaza Office Tower 1, Grand Plaza Office Tower 2, Kornhill Apartments-Clubhouse, The
Long Beach

Hang Lung Properties Limited
Sustainability Report 2023

121

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Appendix 3 – Strategic ESG KPIs
For 2023
2023 KPIs

Results

Climate Resilience
Meet or exceed 30% cumulative reduction in GHG
intensity (kgCO2e/m2) relative to 2018.

Obtained a 41% reduction in GHG intensity (kgCO2e/m2) relative
to 2018.

Meet or exceed 16% cumulative reduction inelectricity intensity (kWh/m2) relative to 2018.

Obtained a 13.8% reduction in electricity intensity (kWh/m2) relative
to 2018.

18% of our mainland China portfolio electricity
demand from renewable energy

19% of our mainland China portfolio electricity demand fromrenewable energy in 2023.

Improve our EV charging plan and conduct at least
two pilots to increase EV charging spaces, one in
Hong Kong and one on the Mainland.

An additional 20 EV chargers have been installed in Center 66,
Wuxi, and 8 EV chargers are planned for Kornhill Plaza and Canton
Road Carpark in Hong Kong.

For the Shouson Hill Road project in Hong Kong,
demonstrate best efforts in achieving at least
10% reduction in embodied carbon intensity (kgCO2e/m2) in accordance with the methodology ofour 2025 embodied carbon target (i.e., comparing
baseline design with a functionally equivalent
proposed design).

The design is under development and we are liaising with thegovernment. We will proceed with the carbon reduction plan oncethe design is confirmed.

Work with a major tenant to implement a plan toreduce GHG intensity from the tenant’s electricity
consumption across mainland China.

We are working with LVMH Group on several measures to reduce
the electricity consumption of its stores across our properties.

Conduct technical analysis for climate adaptation
for another four properties in mainland China, andimplement adaptation measures in at least two
properties in mainland China or Hong Kong.

Conducted technical analysis for climate adaptation for sevenproperties in mainland China and two properties in Hong Kong.
Implemented adaptation measures in two properties.

Resource Management

122

Conduct a pilot research study to improve
construction waste (e.g., broken concrete) recycling
and circularity in one Mainland development project.

Conducted waste concrete pilot research project in Westlake
66 in collaboration with CLEANCO2 which reused Westlake 66’s
waste concrete as aggregate and processed it into low carbon
recycled concrete aggregate (RCA) through a carbon dioxidemineralization process.

Explore at least two innovative solutions to
reduce embodied carbon in concrete, steel andcurtain walls.

Westlake 66 adopted low carbon concrete bricks on the secondary
partition walls of the basement. We also collaborated with LVMH
Group to identify six recycling use cases for three major types ofrenovation waste in 2023.

Identify highest priority water reduction measures(considering impact and feasibility) and implement
first iteration of the 2023-2025 water reduction plan.

We implemented water restrictors in three Mainland properties,
confirmed the feasibility of water recycling broadly in our Mainland
properties, and piloted water recycling at two of them.

Standardize waste data consolidation method andreview and streamline waste handling procedures
for all Hong Kong properties.

Aligned waste data categorization in Hong Kong via an ESG datacollection platform.

Hang Lung Properties Limited
Sustainability Report 2023

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix2023 KPIs

Results

Pilot at least four reuse and circularity initiatives(e.g., food donation, furniture reuse, urban farming,
e-waste recycling) in operations in Hong Kong andmainland China.

Implemented four waste management or reduction measures
including used clothes recycling, office furniture recycling, surplus
food donation in Hong Kong and e-waste recycling and usedclothes recycling in mainland China.

Identify highest priority waste reduction measures(considering impact and feasibility) and implement
first iteration of the 2023-2025 waste reduction plan.

Conducted waste audit at six different types of properties inHong Kong with the audit findings incorporated into our waste
reduction plan.

Wellbeing
Coordinate a process for each department
to develop and implement three employee
engagement measures.

Following our 2022 employee engagement survey, all projects
and departments have identified and implemented three employee
engagement measures.

Design and implement at least three initiatives
related to culture, age and gender to enable a morediverse and open workplace.

Implemented three initiatives including providing dementia training
sessions for frontline staff, signed the “Racial Diversity andInclusion Charter for Employers” which commits to offering job
opportunities to ethnic minorities on fair basis, and purchased gifts
for colleagues from social enterprises who supported newly arrived
women from the Mainland.

Develop and implement a disability inclusion action
plan based on 2022 assessment results.

Improved accessibility in Hong Kong's new offices, expanded
channels of collaboration with organizations supporting people
with disabilities, and increased the number of interns with special
education needs.

Obtain WELL Gold rating or above for at least one
Mainland or Hong Kong property.

Obtained WELL Platinum rating for Plaza 66, Shanghai in 2023.

Obtain China Healthy Building Label or equivalent for
at least one property in mainland China.

Conducted a design review for the feasibility of obtaining the China
Healthy Building Label for Westlake 66, Hangzhou in 2023. Target
applying for the certification in 2024.

Develop and deliver at least 500 hours of ESG
training including at least 100 hours focused ondelivering climate-related competencies.

Developed and delivered 734 hours of ESG training for specificdepartments, of which 432 hours were focused on delivering
climate-related competencies.

Provide health and safety training to 100% of
employees in mainland China and Hong Kong.

Provided health and safety training to 100% of employees inmainland China and Hong Kong.

Provide health and safety training to 100% of main
contractors in mainland China and Hong Kong.

Provided health and safety training to 100% of main contractors inmainland China and Hong Kong.

Deliver at least 2,200 mentorship hours and
4,400 leadership training hours to selected
female university students in Hong Kong andmainland China.

Delivered over 2,800 mentorship hours and around 3,500
leadership training hours to selected female university students
in Hong Kong and mainland China. We provided fewer leadershiptraining hours than anticipated due to a variation in the number ofparticipants compared to our initial estimate.

Continue to develop and refine ways of assessing
suppliers’ ESG performance and continue todevelop effective digital solutions to support
such assessments.

Improved suppliers’ ESG performance assessment form for
operational and construction suppliers/contractors and working
on digital solutions to support assessment. Also engaged Sedex
to enhance key suppliers’ engagement in ESG evaluation anddue diligence.

Hang Lung Properties Limited
Sustainability Report 2023

123

Introduction

Our Sustainability
Strategy

Climate Resilience

2023 KPIs

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Results

Sustainable Transactions

124

Evaluate the sustainability impacts of 100% of
centrally led marketing events.

In 2023, we evaluated the sustainability impact of the 66 Brand
campaign and identified opportunities to reduce our environmental
footprint in decorative materials and guests' transportation.

Incorporate sustainability provisions in fitout
manuals for all Hong Kong projects.

Sustainability provisions have been incorporated into the latest
version of Hong Kong fit-out guide.

50% of total debts and available facilities fromsustainable finance by the end of 2023.

55% of total debts and available facilities from sustainable financeby the end of 2023.

Improve the ESG due diligence guidelines forpotential asset acquisitions in Hong Kong.

Incorporated ESG due diligence considerations into the process forevaluating potential asset acquisitions in Hong Kong.

Hang Lung Properties Limited
Sustainability Report 2023

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

For 2024
2025 Targets

2024 KPIs

Climate Resilience
40% cumulative reduction in GHG intensity (kgCO2e/m2) relative to 2018

Meet or exceed 35% cumulative reduction in GHG intensity (kgCO2e/m2) relative to 2018

18% cumulative reduction in electricity intensity(kWh/m2) relative to 2018

Meet or exceed 16% cumulative reduction in electricity intensity(kWh/m2) relative to 2018

25% of our mainland China portfolio electricity
demand met by renewable energy

22% of our mainland China portfolio’s electricity demand fromrenewable energy

Wherever feasible exceed local regulations forthe provision of parking spaces installed with EV
charging facilities across our portfolio

Further develop our EV charging plan across 100% of
our portfolio

Demonstrate best efforts to achieve at least
10% reduction in embodied carbon intensity (kgCO2e/m2) for new development project that begin
in 2022 or later, compared to typical practice in an
equivalent building

All development projects (including renovation projects) todemonstrate best efforts to reduce embodied carbon intensity((kg CO2e/m2) by at least 10% through materials substitution ordesign improvements

15% reduction in GHG intensity (kg CO2e/m2) fromtenants’ electricity consumption for our properties inmainland China, relative to 2018

Implement energy management platform and startbenchmarking tenants’ electricity consumption

Complete technical analysis for climate adaptation
measures for all properties

Conduct a technical deep-dive analysis for climate adaptation for
one property in mainland China or Hong Kong, and implement
adaptation measures in at least two properties in mainland
China or Hong Kong

Resource Management
60% of construction waste diverted fromlandfill for new projects starting in 2022 withmaximized recycling

Complete one construction waste audit in one of the Mainlanddevelopment projects

Demonstrate best efforts to maximize the use ofrecycled, reused and bio-based materials on all
new projects

Improve construction and renovation waste source sorting,recycling and circularity and identify at least one pilot waste
stream for upcycling

10% reduction in water intensity (m3/m2/year)
relative to 2018

Apply water saving measures in at least two Hong
Kong properties
Have water recycling systems in use in at least six Mainland
properties by the end of 2024

70% of operational waste diverted from landfill

Improve recycling rate for Hong Kong properties by engaging
tenants and customers through at least two reduce and recycle
initiatives in operations in Hong Kong
Explore at least two innovative solutions to improve waste datareporting and circularity
Improve source separation for Mainland properties by engaging
tenants through at least one reduce and recycle initiative in
Mainland operations

Hang Lung Properties Limited
Sustainability Report 2023

125

Introduction

Our Sustainability
Strategy

Climate Resilience

2025 Targets

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix2024 KPIs

Wellbeing
Achieve an employee engagement rating greaterthan or equal to the 75th percentile

Coordinate a process for each department to develop andimplement at least three employee engagement measures thatreflect feedback from employees in our engagement survey

Maintain Female-to-Male pay ratio of 1:1

Design and implement at least three initiatives related to culture,age, gender and/or people with disabilities to enable a morediverse and open workplace

Conduct an audit of all our properties and corporate
practices on how to enhance wellbeing andopportunities for persons with disabilities

Develop a toolkit to enhance accessibility and service
performance of our properties for people with disabilities

Obtain local or international health and wellness
certification for all our existing Mainland properties

Obtain WELL HSR rating for 15 Hong Kong buildings andmaintain the WELL HSR rating for at least 10 mainland buildings

Obtain WELL Gold certificate or equivalent for
at least one new property in Hong Kong andmainland China

Formulate a checklist for the design of healthy buildings in the
Mainland with reference to the results of WELL, BREEAM andChina Healthy Building certifications in Westlake 66

Deliver priority ESG training targeted to all
departments and seniority levels

Develop and deliver at least 500 hours of targeted ESG training

Maintain a Lost Time Injury Rate of 1.5 or below
for employees

Provide health and safety training to 100% of employees inmainland China and Hong Kong

Maintain zero work-related fatalities for employees
and contractors

Provide health and safety training to 100% of main contractors
in mainland China and Hong Kong, including through Safety
Production Month in mainland China

Work with youth on wellbeing community initiatives
at all properties by 2025

Pilot a social impact assessment in at least one community
investment program

Sustainable Transactions

126

Embrace technology to build a robust digitalplatform for assessing suppliers’ ESG performance

Evaluate at least 80% of key suppliers’ ESG performance

100% of marketing events evaluated for theirsustainability impacts

Define evaluation criteria for local marketing events’sustainability impacts and evaluate the sustainability impacts
of at least 50% of local marketing events in Mainland andHong Kong

100% of leases incorporate sustainability provisions

Collaborate with at least eight tenants in Hong Kong and eighttenants in Mainland under Tenant Partnership Program

50% of total debts and available facilities fromsustainable financeAchieve 60% of total debts and available facilities fromsustainable finance by end of 2024

100% of potential asset acquisitions include ESG
due diligence

Work to enhance ESG due diligence in potential asset acquisition
projects though ESG factor checklist in Hong Kong and project
management manual in Mainland

Hang Lung Properties Limited
Sustainability Report 2023

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Appendix 4 – List of Sustainable Building Certificate
Hong Kong Portfolio
Existing Buildings
Property

Scope

Type of Certification

RatingStandard Chartered Bank Building

Entire Property

BEAM Plus v1.2 Existing Building

Platinum

WELL Health-Safety Rating-

Peak Galleria

Entire Property

BEAM Plus v1.1 Existing Building

Gold

Baskerville House

Entire Property

BEAM Plus v2.0 Existing Building(Selective scheme)

Energy Excellent

Grand Plaza

Shopping Mall

BEAM Plus v2.0 Existing Building(Selective scheme)

Energy Excellent

Office Tower 2

BEAM Plus v2.0 Existing Building(Selective scheme)

Energy Excellent

23-39 Blue Pool Road

Entire Property

LEED BD+C: Homes v3 2008Gold

228 Electric Road

Office Tower

LEED BD+C: Core and Shell v4

Platinum(Precertification)

WELL Core v2

Gold(Precertification)

BEAM Plus NB v1.2

Platinum(Precertification)

China Green Building Design Label

3-starProjects under Development (Pre-certification)
Property

Scope

Type of Certification

Rating

The Aperture

Residential Tower

BEAM Plus NB v1.2

GoldHang Lung Properties Limited
Sustainability Report 2023

127

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Mainland Portfolio
Existing Buildings
Property

Scope

Type of Certification

RatingPlaza 66, Shanghai

Entire Portfolio (Shopping
Mall, Office Tower 1, OfficeTower 2)

LEED O+M V4

Platinum

WELL V2 Core

Platinum

WELL Health-Safety Rating-

Shopping Mall, OfficeTower 1

LEED O+M V4

Platinum

Office Tower 1

LEED BD+C: Core and Shell v3 2009Gold

Shopping Mall, OfficeTower 1

WELL Health-Safety Rating-

Entire Property

LEED BD+C: Core and Shell v2

Gold

WELL Health-Safety Rating-

Shopping Mall

LEED BD+C: Core and Shell v2

Gold

Office Tower 1

LEED BD+C: Core and Shell v2

Gold

Entire Portfolio

WELL Health-Safety Rating-

Entire Property

LEED BD+C: Core and Shell v2

Gold

WELL Health-Safety Rating-

Shopping Mall

LEED BD+C: Core and Shell v2

Gold

Office Tower 1

LEED BD+C: Core and Shell v2

Gold

Office Tower 2

LEED BD+C: Core and Shell v3

Gold

Entire Portfolio

WELL Health-Safety Rating-

Entire Property

LEED BD+C: Core and Shell v2

Gold

Entire Portfolio

WELL Health-Safety Rating-

Entire Property

LEED BD+C: Core and Shell v3 2009Gold

Entire Portfolio

WELL Health-Safety Rating-

Shopping Mall

LEED BD+C: Core and Shell v3 2009

Gold

Office Tower 1

LEED BD+C: Core and Shell v3 2009Gold

Entire Portfolio

WELL Health-Safety Rating-

Shopping Mall

LEED BD+C: Core and Shell v3 2009

Gold

Office Tower 1

LEED BD+C: Core and Shell v3 2009Gold

Entire Portfolio

WELL Health-Safety Rating-

Grand Gateway
66, Shanghai

Palace 66, Shenyang

Forum 66, Shenyang

Parc 66, Jinan

Center 66 (Phase 1), Wuxi

Riverside 66, Tianjin

Olympia 66, Dalian

Spring City 66, Kunming

Heartland 66, Wuhan

128

Hang Lung Properties Limited
Sustainability Report 2023

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Projects under Development (Pre-certification)
Property

Scope

Type of Certification

RatingCenter 66 (Phase 2), Wuxi

Serviced
Apartment Tower 1

LEED BD+C: Core and Shell v4

Gold

Serviced Apartment
Tower 2

LEED BD+C: Core and Shell v4

Gold

Hotel

LEED BD+C: Core and Shell v4

Gold

Entire Portfolio

China Green Building Design Label

2-starSpring City 66 (Phase 2), Kunming

Serviced Apartment

LEED BD+C: Core and Shell v3 2009

Gold

Heartland 66, Wuhan

Serviced Apartment 1

LEED BD+C: Core and Shell v3 2009Gold

Serviced Apartment 2

LEED BD+C: Core and Shell v3 2009Gold

Serviced Apartment 3

LEED BD+C: Core and Shell v3 2009Gold

Shopping Mall

LEED BD+C: Core and Shell v4

Gold

Office Tower 1

LEED BD+C: Core and Shell v4

Platinum

Office Tower 2

LEED BD+C: Core and Shell v4

Platinum

Office Tower 3

LEED BD+C: Core and Shell v4

Gold

Office Tower 4

LEED BD+C: Core and Shell v4

Gold

Office Tower 5

LEED BD+C: Core and Shell v4

Gold

Office Tower 6

LEED BD+C: Core and Shell v4

Gold

Entire Portfolio

China Green Building Design Label

3-starWestlake 66, Hangzhou

Hang Lung Properties Limited
Sustainability Report 2023

129

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Appendix 5 – Performance Tables
List of Major Properties Covered in the Environmental KPIs
Hong Kong
Amoy Plaza

Gala Place

Hang Tung Building

Printing House

AquaMarine

Grand Centre

Hollywood Plaza

Standard Chartered
Bank Building

Baskerville House

Grand Plaza (Tower 1)

Kornhill Apartments

Tai Hing Garden

Burnside Villa

Grand Plaza (Tower 2)

Kornhill PlazaThe Long Beach

1 Duddell Street

Hanford Commercial Centre

Kornhill Recreation ClubThe Summit

Fashion Walk

Hang Lung Centre

Peak Galleria

9 Wing Hong Street

Center 66 (Mall, Office Tower
1 and Office Tower 2), Wuxi

Heartland 66 (Mall and OfficeTower 1), Wuhan

Plaza 66 (Mall, OfficeTower 1 and Office Tower
2), Shanghai

Spring City 66(Mall and Office Tower1), Kunming

Forum 66 (Mall and OfficeTower of Phase 1), Shenyang

Parc 66, Jinan

Olympia 66, DalianGrand Gateway 66 (Mall,
Office Tower 1 and OfficeTower 2), Shanghai

Palace 66, Shenyang

Riverside 66, Tianjin

Mainland China

130

Hang Lung Properties Limited
Sustainability Report 2023

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Scope 3 Emissions Data Reporting Methodology
Scope 3 reporting is based on estimated emissions reflecting the methodologies, boundaries and sources outlined in
the table below.

No.

Scope 3Category

Applicability Methodology /Exclusion Statement

Calculation Method

Emission Factor
Data Source

1a.

Purchased
goods andservices(product)

Yes

This category includes all
upstream emissions from theproduction of construction
materials purchased or
acquired by Hang Lung
Properties (embodied carbon
from development projects).
The calculation follows Life
Cycle Assessment (LCA)
modelling analysis.

Material emission =Purchased amount ×Emission factor ofpurchased material• Ecoinvent 3.10;• GBT 51366-2019 建筑碳排放计算标准 GB/T
51366-2019 Standard
for Building Carbon
Emission Calculation;• 中国产品全生命周期
温室气体排放系数集（2022）China
Products Carbon
Footprint Factors
Database (2022);• ICE (circular
ecology, 2019)

1b.

Purchased
goods andYes

The emissions include
extraction, production andtransportation of goods
and services purchased or
acquired by Hang Lung
Properties that are not directly
related to products (excluding
embodied carbon).

Financial spend × USEEIO
Emission factor

US EnvironmentallyExtended Input-Output(USEEIO) Models

Services(nonproduct)

2

Capitalgoods

Yes

The emissions aremainly from capital
goods expenditure including
extraction, production andtransportation of goodsof high value purchasedor acquired by Hang
Lung Properties.

Financial spend × USEEIO
Emission factor

US EnvironmentallyExtended Input-Output(USEEIO) Models

3

Fuel andenergyrelatedactivities

Yes

The category includes
extraction, production andtransportation of fuels andenergy purchased or acquiredby Hang Lung Properties,
not already accounted for in
Scope 1 or Scope 2 reporting.

Fuel/Energy consumption ×
Upstream emission factor• UK Government GHG
Conversion Factors for
Company Reporting(DEFRA, 2023)• International
Energy Agency(IEA) Emissions
Factors (2023)

Hang Lung Properties Limited
Sustainability Report 2023

131

Introduction

Our Sustainability
StrategyNo.

Scope 3Category

4

UpstreamYestransportation&
distribution

5

Climate Resilience

Resource
Management

Applicability Methodology /Exclusion Statement

Sustainable
Transactions

Appendix

Calculation Method

Emission Factor
Data Source

The category includes thetransportation and distribution
emissions related to building
products and materials.

Weight of purchasedmaterial × transportdistance × Emission factorof the transportation type

• GBT 51366-2019 建筑碳排放计算标准 GB/T
51366-2019 Standard
for Building Carbon
Emission Calculation• UK Government GHG
Conversion Factors for
Company Reporting(DEFRA, 2023)

Waste
Yes
generated
in operations

The category includes
emissions from the disposal
and treatment of waste
generated from operations
and construction of projects.

Waste amount × Emission
factor by waste type andwaste treatment method• UK Government GHG
Conversion Factors for
Company Reporting(DEFRA, 2023)

6

BusinesstravelYes

The category includes
business air travel related
emissions (calculated basedon travel distance), andnon-air travel emissions
including taxis, cars andaccommodation (calculated
based on financial spend).

1. Air travel: Travel
distance × Full lifecycle
emission factor
2. Other travel: Financial
spend × USEEIO
Emission factor• UK Government GHG
Conversion Factors for
Company Reporting(DEFRA, 2023)• US EnvironmentallyExtended Input-Output(USEEIO) Models

7

EmployeecommutingYes

Emissions from transportationof all employees between theirhomes and their worksites
and from teleworking (i.e.,
working from home) were
included in this category.

1. Commuting: Numberof total employees ×% of employee using
mode of transport ×
Commuting days ×
commuting distance× emission factor oftransportation mode
2. WFH: Number of total
employees × WFH days
× WFH emission factor• Commuting emission
factors were fromUK Government GHG
Conversion Factors for
Company Reporting(DEFRA, 2023).
• WFH emission factors
were estimated basedon factors fromUK Government
GHG Conversion
Factors for Company
Reporting (DEFRA,
2023) and International
Energy Agency(IEA) Emissions
Factors (2023), with
fuel and energy
use assumption.

An online survey was carriedout with all staff to collectaccurate data.

132

Wellbeing

Hang Lung Properties Limited
Sustainability Report 2023

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

No.

Scope 3Category

Applicability Methodology /Exclusion Statement

Calculation Method

Emission Factor
Data Source

8

UpstreamleasedassetsYes

Electricity consumption ×
Lifecycle Emission factor• National Grid Emission
Factors from the
Ministry of Ecology
and Environment of
the People’s Republicof China• UK Government GHG
Conversion Factors for
Company Reporting(DEFRA, 2023)• International
Energy Agency(IEA) Emissions
Factors (2023)

9

Downstream No
transportation&
distribution

Category excluded. Hang
Lung Properties’ businessmode does not involve the
distribution of raw materials
or finished products toend customers.

10

Processingof sold
products

Category excluded. Thereis no further processingof sold products by Hang
Lung Properties.

No

Emissions related to operationof assets leased by the Group.

Refurbishment activities by
third party owners of any soldproducts are excluded.
11

Use of soldproducts

Yes

This category includes the
lifetime emissions from theuse of sold products in thereporting year.
There were no products soldto customers by Hang Lung
Properties in 2023.

12

End-of-life
treatmentof sold
products

Yes

This category includes
the emissions from waste
disposal and treatment of
products sold by Hang Lung
Properties at the end of theirlife in the reporting year.
There were no products soldto customers by Hang Lung
Properties in 2023.

Hang Lung Properties Limited
Sustainability Report 2023

133

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

No.

Scope 3Category

Applicability Methodology /Exclusion Statement

Calculation Method

Emission Factor
Data Source

13

Downstream
leasedassetsYes

Electricity consumption ×
Lifecycle Emission factor• For mainland China,
the National Grid
Emission Factors from
the Ministry of Ecology
and Environmentof the People’s
Republic of China andShanghai Municipal
Bureau of Ecology
and Environment
were adopted.
• For Hong Kong,
local utility companies’
emissions factors
and government’s
specific energy
use benchmarks
were adopted asproxy estimations.
• Upstream emission
factors were fromUK Government
GHG Conversion
Factors for Company
Reporting (DEFRA,
2023) and International
Energy Agency(IEA) Emissions
Factors (2023).

Revenue of investee
appointed to Hang Lung ×
USEEIO Emission factor

The US EnvironmentallyExtended Input-Output(USEEIO) Models

Operation of assets owned
by Hang Lung Properties andleased to other entities. This
category of data includes
electricity and energy usage
from our tenants’ operations.
When there is no actual
data received from tenants,
emissions are calculated
based on the total leased
area of tenant space bya local appropriate energy
use benchmark.

134

Appendix

14

Franchises

No

Not applicable to Hang Lung
Properties’ operations

15

Investments

Yes

This category includes
operation of investments(including equity anddebt investment andproject finance) by Hang
Lung Properties in thereporting year.

Hang Lung Properties Limited
Sustainability Report 2023

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Economic
HK: Hong Kong, MC: Mainland China

Indicator

Unit

HK

MC

Total

2021

2022

2023

2021

2022

2023

2021

2022

2023

3,382

3,595

3,349

6,939

6,752

6,967

10,321

10,347

10,316

N/A

N/A

N/A

N/A

N/A

N/A

73

63

71

Operating costs (1)

N/A

N/A

N/A

N/A

N/A

N/A

2,040

2,134

2,043

Employee wages and benefits

N/A

N/A

N/A

N/A

N/A

N/A

1,793

1,855

1,856

Total borrowing costs

N/A

N/A

N/A

N/A

N/A

N/A

1,487

1,512

1,959

N/A

N/A

N/A

N/A

N/A

N/A

3,463

3,509

3,509

Dividends paid to noncontrolling interests

N/A

N/A

N/A

N/A

N/A

N/A

465

510

514

Income taxes to government

305

349

293

1,041

986

1,026

1,346

1,335

1,319

Community investments

N/A

N/A

N/A

N/A

N/A

N/A

17

62

12

Number

1

1

1

9

9

9

10

10

10

HK$ million

N/A

N/A

N/A

N/A

N/A

N/A

-217

-507

-825

Economic value generated
Revenue (including property
sales revenue)

HK$ million

Interest Income
Economic value distributed

Dividends paid

Number of cities of operation

HK$ million

Economic value retained or invested
Economic value retained
or invested

Notes:(1) Operating costs exclude: (1) employee wages and benefits; and (2)community investments.

Hang Lung Properties Limited
Sustainability Report 2023

135

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Environmental
HK: Hong Kong MC: mainland China

Indicator

Unit

HK
2021

2022

MC

Total

2023

2021

2022

2023

2021

2022

2023

Greenhouse Gas (GHG) Emissions (1), (2), (3), (4), (5), (6), (7), (8)Total GHG Emissions (Scope 1 & 2)
Total emissions(Scope 1 and 2) location-based (9)TonnesCO2e40,23538,636

38,765

136,388

149,358

151,266

176,623

187,994

190,031

Carbon emission
intensity (Scope 1
kg
55.6
and 2) - location- CO2e/m2/year
based

53.4

53.7

43.8

41.2

41.7

46.0

43.2

43.7

Total emissions(Scope 1 and 2) market based (10)40,23538,636

38,765

136,388

134,127

125,600

176,623

172,763

164,365

Carbon emissionkg
intensity (Scope 1
55.6
and 2) - market- CO2e/m2/year
based

53.4

53.7

43.8

37.0

34.6

46.0

39.7

37.8

TonnesCO2e

GHG Emissions (Scope 1 & 2) - building operations only
Total emissions(Scope 1 and 2) location-based (9)TonnesCO2e40,18938,58538,704

136,279

149,259

151,126

176,468

187,844

189,830

Carbon emission
Tonnesintensity (Scope 1
0.0556and 2) - location- CO2e/m2/year
based

0.05340.0536

0.04380.04120.04170.04600.04320.0437

Total emissions(Scope 1 and 2) market based (10)40,18938,58538,704

136,279

134,028

125,460

176,469

172,614164,164

Carbon emission
intensity (Scope 1
Tonnes
0.0556and 2) - market- CO2e/m2/year
based

0.05340.0536

0.04380.03700.0346

0.04600.03970.0377

TonnesCO2e

GHG Emissions - by scope and type

136

Gross Directemission(Scope 1)

Tonnes
CO2e

255

51.2

575

2,381

3,890

3,459

2,636

3,942

4,034

Building
operation

Tonnes
CO2e

209

0.6

514

2,272

3,791

3,319

2,481

3,792

3,833

Company
vehicles andvessels (11)Tonnes
CO2e

46

50.6

61

109

99

140

155

150

201

Gross Indirectemission (Scope2) - locationbased (9)TonnesCO2e39,98038,58538,190134,008

145,468

147,807173,988

184,053

185,997

Hang Lung Properties Limited
Sustainability Report 2023

Introduction

Our Sustainability
Strategy

Indicator

Unit

Climate Resilience

Resource
Management

HK

Wellbeing

Sustainable
Transactions

MC

Appendix

Total

2021

2022

2023

2021

2022

2023

2021

2022

2023

Building
operation

TonnesCO2e39,98038,58538,190134,008

145,468

147,807173,988

184,053

185,997

Gross Indirectemission (Scope2) - marketbased (10)TonnesCO2e39,98038,58538,190134,008130,237

122,141

173,988

168,822160,331

Building
operation

TonnesCO2e39,98038,58538,190134,008130,237

122,141

173,988

168,822160,331

Gross Indirectemission(Scope 3)

TonnesCO2e98,362

107,11293,651

362,647

336,260

716,928461,009443,372

810,580

Purchased goods& services (Cat 1)

TonnesCO2e29,391

31,844

21,748242,633

219,950

558,443

272,024

251,794580,191

1a. ProductTonnesCO2e

16,567

18,615

5,783

216,010

196,852

528,264

232,577

215,467

534,047

1b. Non-productTonnesCO2e12,824

13,22915,965

26,62323,09830,17939,44736,327

46,144

Capital goods(Cat 2)Tonnes
CO2e

1,392

1,096

1,293

489

1,254

4,323

1,881

2,350

5,616

Fuel and energy
related activities(Cat 3)Tonnes
CO2e

1,536

1,409

10,937

14,393

15,11830,473

15,92916,52741,410

Upstreamtransportationand distribution(Cat 4) (12)Tonnes
CO2e

N/A

N/A

1,178

N/A

N/A

9,932

N/A

N/A

11,110Waste generated
in operations (Cat5)

TonnesCO2e11,436

13,3407,311

14,593

12,921

6,076

26,02926,261

13,387

Business travel(Cat 6)

Tonnes
CO2e

51

218

937

208

224

942

259

442

1,879

Employeecommuting (Cat7)

Tonnes
CO2e

512

455

472

1,129

1,061

1,123

1,641

1,516

1,595

Upstream leased
assets (Cat 8)

Tonnes
CO2e

N/A

N/A

0

N/A

N/A

172

N/A

N/A

172

Use of soldproducts (Cat 11)

Tonnes
CO2e

0

0

0

0

0

0

0

0

0

End-of-life
treatment of soldproducts (Cat 12)

Tonnes
CO2e

0

62

0

0

0

0

0

62

0

Downstream
leased assets(Cat 13)

TonnesCO2e41,05843,29349,657

89,20285,732

105,444130,260

129,025

155,101

Hang Lung Properties Limited
Sustainability Report 2023

137

Introduction

Our Sustainability
Strategy

Indicator

Unit

Investments (Cat15) (13)

Tonnes
CO2e

Climate Resilience

Resource
Management

HK

Wellbeing

Sustainable
Transactions

MC

Appendix

Total

2021

2022

2023

2021

2022

2023

2021

2022

2023

12,986

15,395

118

0

0

0

12,986

15,395

118

Energy Consumed and Generated (14)Total Energy
Totalenergy consumed

GJ

255,662

247,196

252,030

961,621

1,085,671

1,087,339

1,217,283

1,332,867

1,339,369

MJ/m2/
year

354

342

349

309

299

300

317

306

308

Total natural gas

0

0

0

2,248

45,38632,743

2,248

45,38632,743

Total liquid fuels

602

659

802

1,615

1,493

2,139

2,217

2,152

2,941

Petrol (forvehicles)

369

398

474

1,339

1,218

1,726

1,708

1,616

2,200

224

253

311

0

0

0

224

253

311

9

8

17

276

275

413

285

283

430

Total energy
intensity (8)Direct Energy Consumed by typeGas andLiquid Fuels

Diesel (forvehicles andvessels)

GJ

Diesel (foremergency
generators)
Indirect Energy Consumed by type
Electricity

138

Total electricity
consumed (15)GJ

255,060

246,537251,228

760,880

832,667

862,078

1,015,940

1,079,204

1,113,306

Total electricity
consumed

MWh70,85068,48369,786211,356

231,296

239,466

282,206

299,779

309,252

Electricity
purchased from
non-renewablesourceMWh70,85068,48369,786

210,736

203,931

193,826

281,586

272,414263,612

Electricity
purchased fromrenewable
source

MWh

0

0

0

0

26,70745,005026,70745,005

Electricity selfgenerated (solarPV) andconsumed

MWh

N/A

N/A

N/A

619

659

635

619

659

635

Electricity selfgenerated (solarPV) andexported (forFeed-in Tariff)

MWh

N/A

18

18

N/A

N/A

N/A

N/A

18

18

Hang Lung Properties Limited
Sustainability Report 2023

Introduction

Our Sustainability
Strategy

Indicator

Unit

Climate Resilience

Resource
Management

HK

Wellbeing

Sustainable
Transactions

MC

Appendix

Total

2021

2022

2023

2021

2022

2023

2021

2022

2023

kWh/m2/
year

98.11

94.83

96.63

67.67

63.60

65.86

73.40

68.78

70.97

Hot water

GJ

N/A

N/A

N/A

164,826

175,483

157,883

164,826

175,483

157,883

Steam

GJ

N/A

N/A

N/A

32,05230,64232,49532,05230,64232,495

Total municipal
water (16)000 m3

484

469

502

1,433

1,641

1,839

1,917

2,110

2,341

Water intensity (8)m3/m2/
year

0.67

0.65

0.69

0.46

0.45

0.51

0.50

0.49

0.54

Water recycled (17)

m3

N/A

N/A

N/A

N/A

46,986

58,665

N/A

46,986

58,665

Electricity
intensityof buildings
in use (8)District Heating

Water Consumed
Total Water Consumed

Waste Disposal and Recycling
Total Non-Hazardous Waste
Total
waste collected

tonnes

19,10422,053

20,41332,76329,95538,27551,86752,00858,688

Total waste
diverted fromlandfill (18)tonnes

465

331

385

7,053

28,894

38,275

7,518

29,22538,661

Diversion rate(from landfill)

%

2%

2%

2%

22%

96%

100%

14%

56%

66%

kg/m2/
year

26.5

30.5

28.3

10.5

8.3

10.6

13.5

12.0

13.5

Waste intensity (8)Total Hazardous Waste
Total waste
collected (19)tonnes

1.96

0.58

3.35

0.47

0.53

0.79

2.43

1.11

4.14

Hazardous waste
intensity (8)kg/m2/
year

0.00270.00080.00460.00020.00010.00020.00060.00030.0010Waste Disposed or Diverted - by type
Municipal solid
waste - Disposed

tonnes

18,63921,722

20,02925,71021,886

26,73844,34943,60846,767

Hazardous waste Disposed (20)tonnes

1.96

0.58

3.35

0.47

0.53

0.79

2.43

1.11

4.14

Food wastekg

321,494

213,053

258,419

6,822,895

7,939,128

11,208,469

7,144,389

8,152,181

11,466,888

Paper

kg

125,171

103,148

110,810

107,265

76,598234,629

232,436

179,746

345,439

Metal

kg

2,926

2,865

843

63,85919,66949,293

66,78522,53450,136

Plastics

kg

1,053

1,247

1,482

23,338

16,61325,332

24,391

17,86026,814

Recycled waste

Hang Lung Properties Limited
Sustainability Report 2023

139

Introduction

Our Sustainability
Strategy

Indicator

Unit

Climate Resilience

Resource
Management

WellbeingHK

Sustainable
Transactions

MC

Appendix

Total

2021

2022

2023

2021

2022

2023

2021

2022

2023

Glass

kg

13,816

10,90012,24135,953

12,182

19,98649,76923,08232,227

Textiles /Clothing

kg

N/A

123

1,548

N/A

5,000

156

N/A

5,123

1,704

WEEE

pieces

N/A

88

66

N/A

0

474

N/A

88

540

Gross Floor Aream2

554,896554,896554,8962,034,027

2,362,639

2,362,639

2,588,923

2,917,535

2,917,535

Construction
Floor Aream2

722,185

722,185

722,185

3,114,114

3,626,621

3,626,621

3,836,299

4,348,806

4,348,806

Floor Area

Notes:(1) The coverage of energy, greenhouse gas emissions, water andwaste data in 2021 includes 24 properties in Hong Kong and nine
properties in mainland China (Plaza 66, Grand Gateway 66, Palace
66, Parc 66 and Forum 66 (Mall and Office Tower of Phase 1), Center
66 (Mall, Office Tower 1 and Office Tower 2), Riverside 66, Olympia
66 and Spring City 66 (Mall and Office Tower 1). Heartland 66 is
excluded as it opened in mid-2021.
(2)

(3)

The coverage of energy, greenhouse gas emissions, water and waste
data in 2022 and 2023 includes 24 properties in Hong Kong andten properties in mainland China (Plaza 66, Grand Gateway 66,
Palace 66, Parc 66 and Forum 66 (Mall and Office Tower of Phase1), Center 66 (Mall, Office Tower 1 and Office Tower 2), Riverside
66, Olympia 66, Spring City 66 (Mall and Office Tower 1), andHeartland 66. 228 Electric Road is excluded as it opened in July
2023. For scope 3 emissions, the data boundary also covers projects
under development in Hong Kong and mainland China, including
228 Electric Road Redevelopment, The Aperture, Westlake 66, Grand
Hyatt and Grand Hyatt Residence Kunming, Curio Collection by
Hilton, Wuxi, Heartland Residence, Center Residence, Forum 66 andrenovation project in Parc 66.
The emission from NOx, SOx and other pollutants are considered not
significant to our operations. In 2023, the total emissions of NOx,
SOx and PM from vehicles were estimated to be 7.3kg, 0.21kg, and0.54kg respectively.

(4)

We did not have any biogenic CO2 emissions during thereporting year.

(5)

Our GHG emissions and intensity figures for 2021 have been restatedas we updated the emissions factors for purchased electricity inmainland China in accordance with HKEX's recommendations.

(6)

Calculation standards and methodologies for carbon emissions:a) Guidelines to Account for and Report on Greenhouse Gas
Emissions and Removals for Buildings (Commercial, Residential
or Institutional Purposes) in Hong Kong (2010 edition) publishedby the Environmental Protection Department (EPD) and theElectrical and Mechanical Services Department (EMSD) of the Hong
Kong Government.
b) Emission intensity published by CLP Power Hong Kong Limitedin Sustainability Report 2023 and Hongkong Electric in Sustainability
Report 2022c) 2006 IPCC Guidelines for Nationals Greenhouse Gas Inventories,
Chapter 2: Stationary Combustion (Commercial Institutional)d) Emission factors issued by the Ministry of Ecology andEnvironment and local Regulations issued by local Municipality ofEnvironmental Protection(7)

Carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O) andhydrofluorocarbons (HFCs) are included in greenhouse gas (GHG)
calculations. Perfluorocarbons (PFCs), sulphur hexafluoride (SF6)and nitrogen trifluoride (NF3) are not applicable.

(8)

The GHG emission, energy, water and waste intensity figures in thistable are calculated per unit construction floor area.

(9)

Location-based method is a method to quantify scope 2 GHG
emissions based on average energy generation emission factors
for defined geographic locations, including local, subnational, or
national boundaries.

(10) Market-based method is a method to quantify the scope 2 GHG
emissions of a reporter based on GHG emissions emitted by
the generators from which the reporter contractually purchases
electricity bundled with contractual instruments, or contractual
instruments on their own.
(11) This only covers vehicles and vessels that are entirely owned andoperated by the Group, excluding any vehicles and vessels operated
by our service providers.
(12) Between 2021 and 2022, Scope 3 Category 4 emissions were
included in Category 1a - purchased goods and services (product).
We reported the emissions separately from Category 1a in 2023.
(13) Between 2021 and 2022, the Scope 3 Category 15 investments
emissions include operation of investments (including equity anddebt investment and project finance) by both Hang Lung Properties
and Hang Lung Group in the reporting year. In 2023, we improved theaccounting method and reported emissions only include investment
emissions from Hang Lung Properties in the reporting year.
(14) The conversion factors from volumetric units of petrol, diesel
and natural gas consumption to energy units are referenced fromTechnical Note: Conversion of fuel data to MWh published by CDP
in 2020.
(15) Total electricity consumed is adjusted for 2021 to include therenewable electricity self-generated and consumed on site.
(16) This only covers total municipal potable water.
(17) This includes grey water, condensation water, fire service water,
cooling tower bleed off water, etc.
(18) We started to collect data of our municipal waste sent to incinerationin 2022, following the urban domestic waste classification andtreatment facilities plan jointly issued by the National Development
and Reform Commission and the Ministry of Housing and
UrbanRural Development of PRC in 2021.
(19) We started to collect the amount of medical waste in 2023.

140

Hang Lung Properties Limited
Sustainability Report 2023

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management(20) Currently, all non-hazardous waste of our Hong Kong portfolio is
disposed of offsite at public landfills, while the hazardous waste isdiverted from landfill. In mainland China, our non-hazardous waste
is disposed of offsite at incineration facilities, while the hazardous
waste is disposed of in compliance with government requirements.

Wellbeing

Sustainable
Transactions

Appendix

The reported quantity of recyclables only reflects those being
disposed of directly at our designated collection points. Data on
recyclables that have been handled through informal channels, e.g.,collected by individual recyclers, cannot be captured. The Group’s
operations did not involve significant generation of hazardous waste.

Hang Lung Properties Limited
Sustainability Report 2023

141

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

AppendixSocialHK: Hong Kong MC: mainland China

HK
Indicator

Unit

MC

Total

2021

2022

2023

2021

2022

2023

2021

2022

2023

1,104

1,116

1,017

3,236

3,229

3,287

4,340

4,345

4,304

44

70

49

26

26

42

70

96

91

609
(57.5%)

592(56.6%)

541(55.9%)

1,973(61.5%)

1,913(59.7%)

1,923(59.3%)

2,582(60.5%)

2,505(59.0%)

2,464(58.5%)

451(42.5%)

454(43.4%)

427(44.1%)

1,237(38.5%)

1,290(40.3%)

1,322(40.7%)

1,688(39.5%)

1,744(41.0%)

1,749(41.5%)

97(9.2%)

97(9.3%)

74(7.4%)

456(14.2%)

429(13.4%)

393(12.1%)

553(13.0%)

526(12.4%)

467(11.1%)

569(53.7%)

555(53.1%)

527(54.4%)

2,498(77.8%)

2,498(78.0%)

2,519(77.6%)

3,067(71.8%)

3,053(71.9%)

3,046(72.3%)

394(37.2%)

394(37.7%)

367(37.9%)

256(8.0%)

276(8.6%)

333(10.3%)

650(15.2%)

670(15.8%)

700(16.6%)

Profile of workforce (1)Total workforce(employees andsupervised
workers)

NumberSupervised
workers (2), (3)Employees by gender
Male
FemaleNumber
(%)

Employees by age group
Under 30
30 – 50

Number(%)

Over 50

Employees by employment contract
Permanent
Full Time

1,043

1,021

955

3,210

3,203

3,245

4,253

4,224

4,200

Male

599

581

534

1,973

1,913

1,923

2,572

2,494

2,457

Female

444

440

421

1,237

1,290

1,322

1,681

1,730

1,743

Permanent
Part time

4

5

4

0

0

0

4

5

4

0

0

0

0

0

0

0

0

0

Female

4

5

4

0

0

0

4

5

4

Contract /Temporary

17

20

9

0

0

0

17

20

9

Male

10

11

7

0

0

0

10

11

7

Female

7

9

2

0

0

0

7

9

2

157
(14.8%)

166(15.9%)

166(17.1%)

153(4.8%)

176(5.5%)

192(5.9%)

310(7.3%)

342(8.0%)

358(8.5%)

400(37.7%)

412(39.4%)

386(39.9%)

1,350(42.1%)

1,408(44.0%)

1,452(44.7%)

1,750(41.0%)

1,820(42.8%)

1,838(43.6%)

503(47.5%)

468(44.7%)

416(43.0%)

1,707(53.2%)

1,619(50.5%)

1,601(49.3%)

2,210(51.8%)

2,087(49.1%)

2,017(47.9%)

Male

Number

Employees by employee category
Executive staff
Administrative
staff
Operational staff

142

Hang Lung Properties Limited
Sustainability Report 2023

Number(%)

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

WellbeingHK
Indicator

Sustainable
Transactions

Appendix

MC

Total

Unit

2021

2022

2023

2021

2022

2023

2021

2022

2023

Number(%)

186(17.5%)

208(19.9%)

144(14.9%)

592(18.4%)

410(12.8%)

360(11.1%)

778(18.2%)

618(14.5%)

504(12.0%)

90(14.8%)

91(15.4%)

74(13.7%)

271(13.7%)

195(10.2%)

181(9.4%)

361(14.0%)

286(11.4%)

255(10.3%)

96(21.3%)

117(25.8%)

70(16.4%)

321(25.9%)

215(16.7%)

179(13.5%)

417(24.7%)

332(19.0%)

249(12.4%)

58(59.8%)

52(53.6%)

31(41.9%)

220(48.2%)

141(32.9%)

126(32.1%)

278(50.3%)

193(36.7%)

157(33.6%)

98(17.2%)

139(25.0%)

98(18.6%)

363(14.5%)

260(10.4%)

224(8.9%)

461(15.0%)

399(13.1%)

322(10.6%)

30(7.6%)

17(4.3%)

15(4.3%)

9(3.5%)

9(3.3%)

10(3.0%)

39(6.0%)

26(3.9%)

25(3.6%)

232(21.9%)

250(23.9%)

237(24.5%)

784(24.4%)

485(15.1%)

384(11.8%)

1,016(23.8%)

735(17.3%)

621(14.7%)

128(21.0%)

117(19.8%)

135(25.0%)

437(22.1%)

284(14.8%)

204(10.6%)

565(21.9%)

401(16.0%)

339(13.8%)

104(23.1%)

133(29.3%)

102(23.9%)

347(28.1%)

201(15.6%)

180(13.6%)

451(26.7%)

334(19.2%)

282(16.1%)

46(47.4%)

33(34.0%)

37(50.0%)

194(42.5%)

99(23.1%)

89(22.6%)

240(43.4%)

132(25.1%)

126(27.0%)

119(20.9%)

150(27.0%)

127(24.1%)

559(22.4%)

337(13.5%)

248(9.8%)

678(22.1%)

487(16.0%)

375(12.3%)

67(17.0%)

67(17.0%)

73(19.9%)

31(12.1%)

49(17.8%)

47(14.1%)

98(15.1%)

116(17.3%)

120(17.1%)

71(45.2%)

76(45.8%)

75(45.2%)

48(31.4%)

59(33.5%)

66(34.4%)

119(38.4%)

135(39.5%)

141(39.4%)

256(64.0%)

265(64.3%)

245(63.5%)

785(58.1%)

827(58.7%)

847(58.3%)

1,041(59.5%)

1,092(60.0%)

1,092(59.4%)

124(24.7%)

113(24.1%)

107(25.7%)

404(23.7%)

404(25.0%)

409(25.5%)

528(23.9%)

517(24.8%)

516(25.6%)

N/A

35%

38%

N/A

11%

16%

23%

20%

24%

New hires
Total number andrate of new hires
By gender
Male
FemaleNumber(%)

By age group
Under 30
30 – 50

Number(%)

Over 50
Turnover (4)Total number andrate of turnover

Number(%)

By gender
Male
FemaleNumber(%)

By age group
Under 30
30 – 50

Number(%)

Over 50
Diversity
Gender ratio by employee category
Executive staff
Administrative
staff

Number(%)
of female

Operational staff
Gender ratio by job function
STEM-related
positions%of femaleHang Lung Properties Limited
Sustainability Report 2023

143

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

WellbeingHK
Indicator
Executive staff
in revenuegenerating
functions (e.g.,sales, leasing)Sustainable
Transactions

MC

Appendix

Total

Unit

2021

2022

2023

2021

2022

2023

2021

2022

2023

%
of female

N/A

49%

47%

N/A

34%

41%

56%

42%

44%

Ratio of basic salary of women to men by employee category
All staff (5)Executive staff
Administrative
staff

Ratio

Operational staff

N/A

1:0.992

1:1.015

N/A

1:1.031

1:1.009

N/A

1:0.978

1:0.977

1:1.319

1:1.285

1:1.238

1:1.179

1:1.245

1:1.229

N/A

1:1.214

1:1.182

1:1.174

1:1.173

1:1.189

1:1.201

1:1.181:1.137

N/A

1:1.121

1:1.109

1:1.152

1:1.152

1:1.168

1:1.031

1:1.04

1:1.034

N/A

1:1.105

1:1.092

1,060

1,046

968

3,210

3,203

3,245

4,270

4,249

4,213

609

592

541

1,973

1,913

1,923

2,582

2,505

2,464

451

454

427

1,237

1,290

1,322

1,688

1,744

1,749

21

11

16

109

89

71

130

100

87

8

5

8

41

33

26

49

38

34

13

6

8

68

56

45

81

62

53

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

Parental leave (6)Total numberof employees
entitled toparental leave
Male
FemaleTotal number of
employees tookparental leave
Male
FemaleNumberNumberNumberNumberReturn to work rate by gender
Male
Female%Employee training (7)Total hours of
employee training

Hours

10,17815,95916,43084,47185,865110,274

94,649101,824

126,704

Average hours of
employee training

Hours peremployee

9.6

15.3

17.0

26.3

26.8

34.0

22.2

24

30.1

Average training hours by gender
Male

Hours

9.7

15.2

15.4

26.5

26.6

32.2

22.6

23.9

28.5

Female

Hours

9.5

15.3

19.0

26.0

27.1

36.6

21.6

24.1

32.3

Average training hours by employee category

144

Executive staff

Hours

13.8

27.9

25.8

40.5

36.3

35.2

26.9

32.2

30.9

Administrative
staff

Hours

9.6

10.5

18.0

23.1

20.9

28.5

20.0

18.5

26.3

Operational staff

Hours

8.3

15.0

12.5

27.6

30.9

38.8

23.2

27.3

33.4

Hang Lung Properties Limited
Sustainability Report 2023

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

WellbeingHK
Indicator

Unit

2021

2022

Sustainable
Transactions

Appendix

MC

Total

2023

2021

2022

2023

2021

2022

2023

Percentage of employee trained by gender (7), (8)
Male

%

N/A

99.3%

99.3%

N/A

99.6%

99.7%

N/A

99.5%

99.6%

Female

%

N/A

99.8%

99.5%

N/A

99.8%

99.7%

N/A

99.8%

99.7%

Percentage of employee trained by employee category (7), (8)Executive staff%

N/A

100.0%

99.4%

N/A

99.4%

99.0%

N/A

99.7%

99.2%

Administrative
staff

%

N/A

99.5%

100.0%

N/A

99.9%

99.8%

N/A

99.8%

99.8%

Operational staff

%

N/A

99.4%

98.8%

N/A

99.4%

99.7%

N/A

99.4%

99.5%

Occupational
health and safety

Hours

1,769

4,603

3,825

9,814

9,210

15,59911,583

13,813

19,424

Data privacy andcyber security

Hours

N/A

1,461

1,779

N/A

2,854

5,841

N/A

4,315

7,620

Crisismanagement

Hours

N/A

1,193

1,094

N/A

3,864

8,097

N/A

5,057

9,191

Anticorruption Training

Hours

1,225

1,613

1,092

3,474

3,391

3,981

4,699

5,004

5,073

Training by Topics
Training hours by topics (9)Percentage of employee received anti-corruption training by employee category (7)Executive staff

%

100%

96%

96%

100%

99%

99%

100%

98%

97%

Administrative
staff

%

100%

99%

100%

100%

99%

99%

100%

99%

99%

Operational staff

%

100%

99%

98%

100%

98%

99%

100%

98%

99%

Employees receiving regular performance and career development reviews
Percentage of
total employees

%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

0%

0%

40%

39%

39%

N/A

N/A

N/A

By gender
Male
Female%By employee category
Executive staff
Administrative
staff

%

Operational Staff

Employees covered by collective bargaining
Percentage of
total employees%

0%Hang Lung Properties Limited
Sustainability Report 2023

145

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

WellbeingHK
Indicator

Unit

Sustainable
Transactions

MC

Appendix

Total

2021

2022

2023

2021

2022

2023

2021

2022

2023

Occupational health and safety (10)Total hours worked

Hours

2,366,760

2,352,395

2,380,526

6,204,736

6,459,487

6,553,524

8,571,496

8,811,882

8,934,050

Fatalities (11)

Number

0

0

0

0

0

0

0

0

0

Fatalities rate

%

0%

0%

0%

0%

0%

0%

0%

0%

0%

Workrelated injuries

Number

27

20

23

29

32

22

56

52

45

Injury rate (per100 employees)

N/A

2.28

1.70

1.93

0.93

0.99

0.67

1.31

1.18

1.01

Lost-time workrelated injuries

Number

26

19

21

27

14

20

53

33

41

Rate of losttime work-related
injuries / Lost-time
injury rate (LTIR) (12)

N/A

2.20

1.62

1.76

0.87

0.43

0.61

1.24

0.75

0.92

Numberof injuries/ million
10.99
hours
worked

8.08

8.82

4.35

2.17

3.05

6.18

3.74

4.59

Lost-time injury
frequency
rate (LTIFR)

High-consequencework-related
injuries (13)

Number

2

0

2

2

3

0

4

3

2

Rate of highconsequencework-related
injuries (per100 employees)

N/A

0.17

0.00

0.17

0.06

0.09

0.00

0.09

0.07

0.04

Lost days
due to workrelated injuries

Days

537

387

1,040

828

962

402

1,365

1,349

1,442

Lost day rate (per100 employees)

N/A

45.38

32.90

87.38

26.69

29.78

12.27

31.85

30.61

32.28

Absentee rate (14)

%

2.17%

2.00%

2.32%

1.63%

1.56%

1.50%

1.78%

1.67%

1.72%

Notes:(1) The profile of workforce data was compiled based on the number of
employees and number of workers as of the end of each reporting
year, provided by our Human Resources Department. We do not
yet report data on the employment of people from minority andvulnerable groups.

146

(2)

Supervised workers are workers who are not employees under
Hang Lung but whose work is controlled by the organization. The
Group does not report data of supervised workers by gender andage. Supervised workers do not cause significant variation in theGroup’s workforce and activities. Most of the supervised workers are
responsible for providing cleaning and security services.

(3)

There was no significant variation in the number of non-supervised
workers in the reporting period or between the current and lastreporting period.

Hang Lung Properties Limited
Sustainability Report 2023

(4)

The turnover rates cover voluntary resignations, retirements, andinvoluntary leave during the corresponding reporting periods.

(5)

We started disclosing the overall ratio of basic salary of women tomen in 2022.

(6)

We are not reporting the total number of employees that returned
to work after parental leave ended and that were still employed
12 months after their return to work as this particular data is
not tracked. In the meantime, we do track the number of excolleagues who consider “family responsibility” as one of the reasons
for resignation.

(7)

Training categories include: onboarding programs, language
skills, customer service, professional development, leadershipdevelopment, occupational health and safety, and regulatorycompliance. All our employees were required to receive either

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

induction or refresher training courses on integrity and crisis
management during the reporting period, and all employees withcompany email addresses received cybersecurity training. The
percentage of employees trained could not reach 100% since someof the employees had long leave or newly joined in the year-end andthey could not participate in training in 2022 and 2023.
(8)

We started disclosing the percentage of employee training by genderand employee category in 2022.

(9)

We started disclosing the training hours related to data privacy andcyber security and crisis management in 2022.

(10) Our occupational health and safety data reported in the performancetable only covers our office and frontline operations. This includes
our employees and supervised workers. We do not report data on
the occupational disease rate as we encounter difficulties in datacollection. We do not further break down our occupational health andsafety data by gender because we consider such data insignificant
for reporting. For the occupational health and safety data of ourcontractors at our construction sites, please refer to the Project
Safety Management section of this Report.

Wellbeing

Sustainable
Transactions

Appendix(11) Fatalities refer to work-related fatalities of employees as defined by
HKEX and GRI.
(12) Loss day injuries are equivalent to recordable work-related injuries
as defined by GRI. The injury rates, rates of high-consequenceworkrelated injuries, rates of recordable work-related injuries andlost day rates were calculated on 200,000 hours worked. The factor
200,000 is the annual hours worked by 100 employees, based on 40
hours per week for 50 weeks a year.
(13) Major work-related hazards that may cause high-consequence workrelated injuries include falls, slips and falls at same level, the useof machines with moving parts, hot & electrical work, and manual
handling. Major types of injury include scratches, being struck by
objects, fractures and cuts.
(14) Absentee days are defined as the sum of non-work-related sick leave(i.e., sick leave not caused by a work-related accident/ injury/ illness).

Hang Lung Properties Limited
Sustainability Report 2023

147

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Appendix 6 – Independent Assurance Opinion Statement

Statement No.:SRA-HK 802871

Hang Lung Group Limited and Hang Lung Properties Limited Sustainability Report 2023
The British Standards Institution is independent to Hang Lung Group Limited, and its subsidiaries including Hang Lung
Properties Limited (hereafter referred to as “HLP” collectively in this statement), and has no financial interest in theoperation of HLP other than for the assessment and assurance of HLP Sustainability Report 2023 (“Report”).
This independent assurance opinion statement has been prepared for HLP only for the purposes of assuring its
statements relating to the Report, more particularly described in the Scope, below. It was not prepared for any otherpurpose. The British Standards Institution will not, in providing this independent assurance opinion statement, accept
or assume responsibility (legal or otherwise) or accept liability for or in connection with any other purpose for which it
may be used, or to any person by whom the independent assurance opinion statement may be read. This statement isintended to be used by stakeholders & management of HLP.
This independent assurance opinion statement is prepared on the basis of review by the British Standards Institutionof information presented to it by HLP. The review does not extend beyond such information and is solely based on
it. In performing such review, the British Standards Institution has assumed that all such information is complete
and accurate.
Any queries that may arise by virtue of this independent assurance opinion statement or matters relating to it should be
addressed to HLP only.
Scope
The scope of engagement agreed upon with HLP includes the followings:
1. The assurance covers the whole Report, and focuses on systems and activities of HLP and its subsidiaries (theGroup), including Hang Lung Properties Limited (Hang Lung Properties) in Hong Kong and mainland China, which
include commercial property development, leasing, management and construction during the period from 1st
January 2023 to 31st December 2023. The Report is prepared in accordance with the GRI Sustainability ReportingStandards (“GRI Standards”) and in accordance with the Hong Kong Stock Exchange’s (“HKEX”) Environmental, Socialand Governance Reporting Guide (“ESG Guide”).
2. Type 1 Moderate Level of Assurance evaluates of the nature and extent of HLP’s adherence to four
reporting principles, which include Inclusivity, Materiality, Responsiveness and Impact. The specified sustainability
performance information/data disclosed in the Report has been evaluated.
This statement was prepared in English and translated into Chinese for reference only.

148

Hang Lung Properties Limited
Sustainability Report 2023

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Opinion Statement
We conclude that the Report provides a fair view of the HLP’s sustainability programmes and performances in thereporting year. We believe that the economic, social and environmental performance indicators are fairly represented
in the Report, in which HLP’s efforts being made to pursue sustainable development are widely recognized byits stakeholders.
Our work was carried out by a team of sustainability report assurors. We planned and performed this part of our workto obtain the necessary information and explanations. We considered HLP has provided sufficient evidence that HLP’s
self-declaration of reporting in accordance with the GRI Standards and the HKEX ESG Guide were fairly stated.
Methodology
Our work was designed to gather evidence on which to base our conclusion. We undertook the following activities:• A top level review of issues raised by external parties that could be relevant to HLP’s policies to provide a check on theappropriateness of statements made in the Report• Discussion with senior executives on HLP’s approach to stakeholder engagement. We had no direct contact withexternal stakeholders• Interview with staff involved in sustainability management, report preparation and provision of report information
were carried out• Review of key organizational developments• Review of supporting evidence for claims made in the Report• An assessment of the company’s reporting and management processes concerning this reporting against the
principles of Inclusivity, Materiality, Responsiveness and Impact.
Conclusions
A detailed review against the principles of Inclusivity, Materiality, Responsiveness and Impact and HKEX ESG Guide, andin accordance with the GRI Standards is set out below:
Inclusivity
The Report has reflected a fact that HLP is seeking the engagement of its stakeholders through numerous channels
such as biannual two-way performance check-in and review; regular drinks sessions with management; annual
dinner; quarterly corporate newsletter (print edition) with monthly articles on corporate website; annual sustainabilityfocused interviews, surveys and focus groups; annual employee engagement survey; Emerald Award, CEO Award,
Long Service Award; annual conference (management conference, function conference); ongoing digital platform
communication through intranet and WeChat; regular staff activities; exit interviews; regular sustainability newsletter;
regular customer engagement surveys; annual tenant satisfaction surveys and interviews; tenant and customer surveys
with sustainability focus; ongoing social media communication through various media; annual sustainability reporting,benchmarks and indices; regular investor interviews, meetings, roadshows, and investor conferences; annual General
Meeting; regular project meetings; screening and performance evaluation; focus group discussions; regular meetings;
occasional site visits by government officials; government consultations; regular collaboration on sustainability andcommunity investment initiatives; regular participation in conferences, seminars, and networking events; regular twoway communication with international and local communities at the Board level; ongoing community programs; monthly
community events; occasional one-on-one interviews by independent consultants; biannual results announcements andpress conferences; occasional media briefings and luncheons, and more.
HLP’s operation involves various methods of engaging its stakeholders on daily basis. The Report covers economic,
social and environmental aspects concerned by its stakeholder with a fair level of disclosures. In our professional
opinion, HLP adheres to the principle of Inclusivity. Our view of areas for enhancement to the Report was adopted by
HLP before issue of this opinion statement.
Hang Lung Properties Limited
Sustainability Report 2023

149

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Materiality
HLP publishes sustainability information that enables its stakeholders to make informed judgments about thecompany's management and performance. In our professional opinion, the Report adheres to the principle ofMateriality and identifies HLP’s material aspects by using appropriate method of materiality analysis and demonstrating
material issues in a matrix form. Areas for enhancement to the Report were adopted by HLP before issue of thisopinion statement.
Responsiveness
HLP has implemented practices to respond to the expectations and perceptions of its stakeholders. It includes various
surveys and feedback mechanisms to both internal and external stakeholders. In our professional opinion, HLP adheresto the principle of Responsiveness. Areas for enhancement to the Report were adopted by HLP before issue of thisopinion statement.
Impact
HLP has established processes to understand, measure and evaluate its impacts in qualitative and quantitative way.
These processes enable HLP to assess its impact and disclose them in the Report. In our professional opinion, HLP
adheres to the principle of Impact. Areas for enhancement of the Report were adopted by HLP before the issue of thisopinion statement.
GRI Standards Reporting
HLP provided us with their self-declaration of reporting “In accordance with” the GRI Standards. Based on our verification
review, we are able to confirm that social responsibility and sustainable development disclosures in all three categories(Environmental, Social and Economic) are reported in accordance with the GRI Standards.
In our professional opinion the report covers HLP’s social responsibility and sustainability issues. Areas forenhancement to the report were adopted by HLP before issue of this opinion statement.
HKEX ESG Guide Reporting
Based on our verification review, we are able to confirm that social responsibility and sustainable development key
performance indicators and disclosures in two ESG subject areas (Environmental and Social) being reported are basedon HKEX ESG Guide.
In our professional opinion, the Report covers the HLP’s social responsibility and sustainability issues. Areas forenhancement to the report were adopted by HLP before issue of this opinion statement.
Assurance Level
The Type 1 Moderate Level of Assurance provided in our review is defined by the scope and methodology described inthis statement.
Responsibility & Limitations
It is the responsibility of HLP’s senior management to ensure the information being presented in the Report is accurate.
The assurance is limited by information presented by HLP. Our responsibility is to provide an independent assurance
opinion statement to stakeholders giving our professional opinion based on the scope and methodology described.
Competency and Independence
The assurance team was composed of Lead Auditors, who are experienced in industrial sector, and trained in arange of sustainability, environmental and social standards including GRI G3, GRI G3.1, GRI G4, GRI Standards, GRI
Certified Sustainability Professional, AA1000, HKEX ESG Guide, UNGC’s Ten Principles, ISO20121, ISO14064, ISO 14001,
OHSAS 18001, ISO45001, ISO 9001, and ISO 10002, etc. British Standards Institution is a leading global standards andassessment body founded in 1901. The assurance is carried out in line with the BSI Fair Trading Code of Practice.

150

Hang Lung Properties Limited
Sustainability Report 2023

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

For and on behalf of BSI

Verifier of the ReportMichael Lam -Aaron ChimManaging Director

Lead Assuror

Wellbeing

Sustainable
Transactions

Appendix

Assurance, APAC
14 March 2024

Hang Lung Properties Limited
Sustainability Report 2023

151

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix 7 – Independent Practitioner’s Assurance Report forGreen Bonds and Green Loans

152

Hang Lung Properties Limited
Sustainability Report 2023

AppendixIntroduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Hang Lung Properties Limited
Sustainability Report 2023

153

Introduction154

Our Sustainability
Strategy

Hang Lung Properties Limited
Sustainability Report 2023

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

AppendixIntroduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Hang Lung Properties Limited
Sustainability Report 2023

155

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Appendix 8 – ISSB IFRS S2 Climate-related Disclosures Content Index
Starting from 2018, we have disclosed our approach to addressing climate-related issues in alignment with the Task
Force on Climate-related Financial Disclosures’ (TCFD) recommendations. As the International Financial ReportingStandards (IFRS) Foundation’s International Sustainability Standards Board (ISSB) issued its sustainability standards inJune 2023, we have aligned our climate-related disclosures with the recommendations of ISSB for the first time. We
welcome stakeholder feedback and look forward to improving our ISSB disclosure in the years ahead.

Reference Disclosure Description
Paragraph

Reference and/or Response

Governance5

The objective of climate-related financial disclosures
on governance is to enable users of general purpose
financial reports to understand the governanceprocesses, controls and procedures an entity uses
to monitor, manage and oversee climate-related risks
and opportunities.

-

6

To achieve this objective, an entity shall disclose
information about:

Joint Statement on Oversight and Management ofEnvironmental, Social and Governance Issues
Sustainability Governance – Board Involvement, ERM
Working Group
Wellbeing – ESG-linked Compensation(a) The governance body(s) (which can include aboard, committee or equivalent body charged withgovernance) or individual(s) responsible for oversightof climate-related risks and opportunities. Specifically,
the entity shall identify that body(s) or individual(s) anddisclose information about:(i) how responsibilities for climate-related risks andopportunities are reflected in the terms of reference,
mandates, role descriptions and other related policies
applicable to that body(s) or individual(s);(ii) how the body(s) or individual(s) determines whether
appropriate skills and competencies are available or will
be developed to oversee strategies designed to respondto climate-related risks and opportunities;(iii) how and how often the body(s) or individual(s) is
informed about climate-related risks and opportunities;(iv) how the body(s) or individual(s) takes into accountclimate-related risks and opportunities when overseeing
the entity’s strategy, its decisions on major transactions
and its risk management processes and related policies,
including whether the body(s) or individual(s) has
considered trade-offs associated with those risks andopportunities; and(v) how the body(s) or individual(s) oversees thesetting of targets related to climate-related risks andopportunities, and monitors progress towards thosetargets including whether and how related performance
metrics are included in remuneration policies

156

Hang Lung Properties Limited
Sustainability Report 2023

As indicated in the Board's “Joint Statement on
Oversight and Management of Environmental, Socialand Governance Issues,” the Board has overall
responsibility for the Group’s ESG strategy andreporting, including identification of relevant risks andopportunities. The Board approved the Sustainability
Framework and the long-term sustainability goals
and targets under the Sustainability Framework, andprovides ongoing oversight to the framework. One of
the four priorities under the Sustainability Framework
is Climate Resilience.
The Board reviews progress towards sustainability
goals and targets related to climate resilience –including the Group’s 2025, 2030 and 2050 goals
and targets – principally through regular reportingof the Sustainability Team to the Board (at least
twice a year). In addition, the Sustainability Team
reports monthly to the Vice-Chair of the Board,
including regular detailed updates on climate-relatedrisks and opportunities.
More generally, the Board has overall responsibility
for risk management, evaluating and determining thenature and extent of significant risks it is willingto take to achieve the Group’s strategic objectives.
The Audit Committee is delegated by the Board tooversee the ongoing effectiveness of the Group’s risk
management system, including climate-related risks.

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Reference Disclosure Description
Paragraph(b) Management’s role in the governance processes,
controls and procedures used to monitor, manageand oversee climate-related risks and opportunities,
including information about:(i) whether the role is delegated to a specificmanagement-level position or management-levelcommittee and how oversight is exercised over that
position or committee; and(ii) whether management uses controls and proceduresto support the oversight of climate-related risks andopportunities and, if so, how these controls andprocedures are integrated with other internal functions.

Wellbeing

Sustainable
Transactions

Appendix

Reference and/or Response
Sustainability GovernanceTerms of Reference of the Sustainability
Steering Committee
Role of Sustainability Steering Committee (SSC)
The SSC, chaired by the Vice-Chair of the Boardand comprising senior representatives from a crosssection of departments, formulates, coordinates
and implements climate resilience strategies,
and ensures that our climate-related targets aretranslated into annual ESG KPIs. The SSC reviews
the Group’s progress against specific climate-related
targets and annual ESG KPIs in detail in regularmeetings (at least twice a year). The SSC also
discusses climate-related risks and opportunities
in detail, including for instance issues related toembodied carbon, energy efficiency, electric vehicles,
physical risks from climate change, carbon pricing,collaboration with tenants and other stakeholders,and other relevant issues.
Role of Sustainability TeamThe Sustainability Team provides regular updates tothe Board (at least twice a year), and to the Vice Chair
Vice Chair (at least monthly) on climate resilience,and supports the detailed strategy development andexecution of ESG KPIs. The Team also presents
and reports to the CEO on the sustainability-related
spending (both CAPEX and OPEX) in an annual
budgeting exercise, which includes spending related
to climate resilience.
Role of Enterprise Risk Management (ERM)
Working GroupThe ERM Working Group, chaired by the Chief
Executive Officer and reporting quarterly to the
Audit Committee, is responsible for coordinating andoverseeing the Group’s risk management activities.
Physical risks of climate change and the risks of thetransition to a low-carbon economy are among theenterprise-level risks overseen by the ERM Working
Group and the executive leading the Sustainability
Team is assigned as the owner of these specificclimate-related risks.

Strategy8

The objective of climate-related financial disclosures on
strategy is to enable users of general purpose financial
reports to understand an entity’s strategy for managing
climate-related risks and opportunities-

9

Specifically, an entity shall disclose information to
enable users of general purpose financial reports
to understand:Climate Resilience – Climate-Related Risks
and Opportunities

Hang Lung Properties Limited
Sustainability Report 2023

157

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Reference Disclosure Description
Paragraph

Wellbeing

Sustainable
Transactions

Appendix

Reference and/or Response(a) the climate-related risks and opportunities that could
reasonably be expected to affect the entity’s prospects(b) the current and anticipated effects of those climaterelated risks and opportunities on the entity’s businessmodel and value chain

Climate Resilience – Climate-Related Risks
and Opportunities(c) the effects of those climate-related risks andopportunities on the entity’s strategy and decisionmaking, including information about its climate-relatedtransition plan

We will discuss this issue in our Net Zero Roadmap
to be published before the end of 2024.

(d) the effects of those climate-related risks andopportunities on the entity’s financial position, financial
performance and cash flows for the reporting period,
and their anticipated effects on the entity’s financial
position, financial performance and cash flows over the
short, medium and long term, taking into consideration
how those climate-related risks and opportunities havebeen factored into the entity’s financial planning

We are taking initial steps to study thispotential disclosure.

(e) the climate resilience of the entity’s strategy
and its business model to climate-relatedchanges, developments and uncertainties, taking into
consideration the entity’s identified climate-related risks
and opportunities

We work to build resilience into our strategy byapplying the most rigorous relevant standards andconsiderations. For physical risks, we consider ouradaptive capacity under two scenarios and focus on
potential risks under the higher emissions scenario.
We have established and are making progress
towards our 2025 target to conduct technicalanalysis of physical risks from climate change for all
our properties.
For decarbonization, our emissions reduction targets
are aligned with climate science and SBTi’s Net
Zero Standard. For new projects, we aim to optimize
energy efficiency and renewable energy investments
and implement measures that offer co-benefits for
mitigation and adaptation.

10

Climate-related risks and opportunities
An entity shall disclose information that enables usersof general purpose financial reports to understandthe climate-related risks and opportunities that could
reasonably be expected to affect the entity’s prospects.
Specifically, the entity shall:

Climate Resilience – Climate-Related Risks
and Opportunities(a) describe climate-related risks and opportunities
that could reasonably be expected to affect theentity’s prospects;

158(b) explain, for each climate-related risk the entity
has identified, whether the entity considers the risk
to be a climate-related physical risk or climate-relatedtransition risk;

Climate Resilience – Climate-Related Risks
and Opportunities(c) specify, for each climate-related risk and opportunity
the entity has identified, over which time horizons—
short, medium or long term— the effects of each

Climate Resilience – Climate-Related Risks
and Opportunities

Hang Lung Properties Limited
Sustainability Report 2023

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Reference Disclosure Description
Paragraph

Wellbeing

Sustainable
Transactions

Appendix

Reference and/or Responseclimate-related risk and opportunity could reasonably be
expected to occur; and1314(d) explain how the entity defines ‘short term’, ‘medium
term’ and ‘long term’ and how these definitions arelinked to the planning horizons used by the entity forstrategic decision-making.

• Short term: 0-2 years – Under our sustainability
framework and governance, we see the 1-2 year
horizon as a short-term horizon. We set strategic
ESG KPIs annually and review them regularly over
the year, with adjustments as needed the following
year to ensure that we are making progress inattaining our medium term target.
• Medium term: 3-10 years – We have defined a setof 25 sustainability targets for 2025 and 4 goals
and 10 targets for 2030 under our sustainability
framework to support our long term vision.
• Long term: 10-30 years – We have defined our longterm vision beyond a 10 year horizon: we have set
a target to reach net zero value chain emissions
by 2050.

Business model and value chain
An entity shall disclose information that enables usersof general purpose financial reports to understand thecurrent and anticipated effects of climate-related risks
and opportunities on the entity’s business model andvalue chain. Specifically, the entity shall disclose:(a) a description of the current and anticipated effects
of climate-related risks and opportunities on the entity’sbusiness model and value chain

Climate Resilience – Climate-Related Risks
and Opportunities(b) a description of where in the entity’s business modeland value chain climate-related risks and opportunities
are concentrated

We provide some disclosure of these issues in our
Climate Resilience chapter, and will elaborate onthem in our Net Zero Roadmap to be published
before the end of 2024.

Strategy and decision-making
An entity shall disclose information that enables usersof general purpose financial reports to understand theeffects of climate-related risks and opportunities on
its strategy and decision-making. Specifically, the entity
shall disclose

Climate Resilience – Climate Adaptation
Climate Resilience – Climate Mitigation(a) information about how the entity has responded
to, and plans to respond to, climate-related risks
and opportunities in its strategy and decision-making,including how the entity plans to achieve any climaterelated targets it has set and any targets it is required
to meet by law or regulation. Specifically, the entity shalldisclose information about:(i) current and anticipated changes to the entity’sbusiness model, including its resource allocation, toaddress climate-related risks and opportunities (forexample, these changes could include plans to manage
or decommission carbon-, energy- or water-intensive
operations; resource allocations resulting from demandor supply-chain changes; resource allocations arisingfrom business development through capital expenditure

Hang Lung Properties Limited
Sustainability Report 2023

159

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Reference Disclosure Description
Paragraph

Wellbeing

Sustainable
Transactions

Appendix

Reference and/or Responseor additional expenditure on research and development;
and acquisitions or divestments);(ii) current and anticipated direct mitigation andadaptation efforts;(iii) current and anticipated indirect mitigation andadaptation efforts;(iv) any climate-related transition plan the entity has,including information about key assumptions used indeveloping its transition plan, and dependencies on
which the entity’s transition plan relies; and(v) how the entity plans to achieve any climaterelated targets, including any greenhouse gas
emissions targets.

15(b) information about how the entity is resourcing, andplans to resource, the activities disclosed.

Climate Resilience – Climate Adaptation
Climate Resilience – Climate Mitigation(c) quantitative and qualitative information about
the progress of plans disclosed in previous
reporting periods.

Climate Resilience – Climate Adaptation
Climate Resilience – Climate Mitigation

Financial position, financial performance andcash flows

We are taking initial steps to study this potential
disclosure. We will review the feasibility of disclosing
such information in the future.

An entity shall disclose information that enables usersof general purpose financial reports to understand:(a) the effects of climate-related risks and opportunities
on the entity’s financial position, financial performanceand cash flows for the reporting period; and

16

160

(b) the anticipated effects of climate-related risks andopportunities on the entity’s financial position, financial
performance and cash flows over the short, medium
and long term, taking into consideration how climaterelated risks and opportunities are included in theentity’s financial planning.

Climate Resilience – Climate-Related Risks
and Opportunities
Climate Resilience – Carbon Pricing Analysis

Specifically, an entity shall disclose quantitative andqualitative information about:(a) how climate-related risks and opportunities haveaffected its financial position, financial performance andcash flows for the reporting period;

We are not assessing the current effects of climaterelated risks and opportunities on the Group’s
financial position, financial performance and cash
flows. We will review the feasibility of disclosing such
quantitative and qualitative information in the future.

(b) the climate-related risks and opportunities identified
for which there is a significant risk of a material
adjustment within the next annual reporting period tothe carrying amounts of assets and liabilities reported in
the related financial statements;

We are reviewing methodologies and processes thatwill help to enhance our understanding of potential
material adjustments arising from climate-relatedrisks and opportunities.

(c) how the entity expects its financial position tochange over the short, medium and long term, given
its strategy to manage climate-related risks andopportunities, taking into consideration:(i) its investment and disposal plans, including plans theentity is not contractually committed to; andClimate Resilience – Climate Adaptation
Climate Resilience – Climate Mitigation

Hang Lung Properties Limited
Sustainability Report 2023

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Reference Disclosure Description
Paragraph

Wellbeing

Sustainable
Transactions

Appendix

Reference and/or Response(ii) its planned sources of funding to implement its
strategy; and22(d) how the entity expects its financial performance andcash flows to change over the short, medium and longterm, given its strategy to manage climate-related risks
and opportunities.

Climate Resilience – Climate-Related Risks
and Opportunities
Climate Resilience – Carbon Pricing Analysis

Climate Resilience
An entity shall disclose information that enables usersof general purpose financial reports to understandthe resilience of the entity’s strategy and businessmodel to climate-related changes, developments anduncertainties, taking into consideration the entity’s
identified climate-related risks and opportunities. The
entity shall use climate-related scenario analysis toassess its climate resilience using an approach that iscommensurate with the entity’s circumstances.

Climate Resilience – Climate-Related Risks
and Opportunities
Climate Resilience – Climate Adaptation
Climate Resilience – Carbon Pricing Analysis

In providing quantitative information, the entity may
disclose a single amount or a range. Specifically, theentity shall disclose:

Our response to physical risks
Following the technical climate-related scenario
analysis, we worked with our properties to review theclimate adaptation recommendations we formulated
together with our consultant. By taking into accountthe unique characteristics and challenges faced byeach property, we were able to identify and prioritize
measures for climate adaptation. We examined allrecommendations and are planning to implement
feasible measures to enhance our adaptive capacity,such as equipment retrofits, installation of flood
detection and warning systems, the provision offlood gates at potential water entry points, and theinstallation of flood sensors, water collection pans
and water discharge routes for major plant rooms.

(a) the entity’s assessment of its climate resilience as at
the reporting date, which shall enable users of general
purpose financial reports to understand:(i) the implications, if any, of the entity’s assessment
for its strategy and business model, including how theentity would need to respond to the effects identified in
the climate-related scenario analysis;(ii) the significant areas of uncertainty considered in theentity’s assessment of its climate resilience;(iii) the entity’s capacity to adjust or adapt its strategy
and business model to climate change over the short,medium and long term, including;(1) the availability of, and flexibility in, the entity’s
existing financial resources to respond to the effects
identified in the climate-related scenario analysis,
including to address climate-related risks and to takeadvantage of climate-related opportunities;(2) the entity’s ability to redeploy, repurpose, upgrade or
decommission existing assets; and(3) the effect of the entity’s current and planned
investments in climate-related mitigation, adaptationand opportunities for climate resilience

We conducted climate-related scenario analysis
for both physical and transition risks. For the
scenarios used, assumptions, and the resultsof the assessment, please refer to our Climate
Resilience chapter.

Our response to transition risks
The Group is committed to achieving net zero value
chain GHG emissions by 2050, and our near-termand long-term net zero targets are validated by SBTi.
Starting in 2021, we have implemented an annual
greenhouse gases mitigation plan to reduce ourportfolio-wide Scope 1 and 2 GHG emissions, with
inputs from all properties. Each plan is first endorsedby the management at property-level, then ultimately
approved by the Vice-Chair of the Board. The Group ison track to achieve its GHG emission intensity targets
for 2025 and 2030. To drive emissions reduction andinform our decision making, we have also piloted –and are continuing to develop – the use of internalcarbon pricing within the Group.
To build capacity within the organization, wedelivered priority ESG training to identified
departments in 2023 on topics including renewableenergy, internal carbon pricing, climate adaptation,and net zero emissions.

Hang Lung Properties Limited
Sustainability Report 2023

161

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Reference Disclosure Description
Paragraph(b) how and when the climate-related scenario analysis
was carried out, including:(i) information about the inputs the entity
used, including:(1) which climate-related scenarios the entity used forthe analysis and the sources of those scenarios;(2) whether the analysis included a diverse range ofclimate-related scenarios;

Wellbeing

Climate Resilience – Climate-Related Risks
and Opportunities
Climate Resilience – Climate Adaptation
Climate Resilience – Carbon Pricing Analysis
We conducted climate-related scenario analysis
for both physical and transition risks. For the
scenarios used, assumptions, and the resultsof the assessment, please refer to our Climate
Resilience chapter.

(4) whether the entity used, among its scenarios,a climate-related scenario aligned with the latest
international agreement on climate change;(5) why the entity decided that its chosen climaterelated scenarios are relevant to assessing its
resilience to climate-related changes, developments
or uncertainties;(6) the time horizons the entity used in the analysis; and(7) what scope of operations the entity used in
the analysis;(ii) the key assumptions the entity made in the analysis,
including assumptions about:(1) climate-related policies in the jurisdictions in which
the entity operates;(2) macroeconomic trends;(3) national- or regional-level variables;(4) energy usage and mix; and(5) developments in technology; and(iii) the reporting period in which the climate-related
scenario analysis was carried out
Risk Management24

The objective of climate-related financial disclosures onrisk management is to enable users of general purpose
financial reports to understand an entity’s processes to
identify, assess, prioritise and monitor climate-relatedrisks and opportunities, including whether and how
those processes are integrated into and inform theentity’s overall risk management process.

-25

To achieve this objective, an entity shall disclose
information about:-

Hang Lung Properties Limited
Sustainability Report 2023

Appendix

Reference and/or Response(3) whether the climate-related scenarios used for the
analysis are associated with climate-related transition
risks or climate-related physical risks;

162

Sustainable
Transactions

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Reference Disclosure Description
Paragraph

Wellbeing

Sustainable
Transactions

Appendix

Reference and/or Response(a) the processes and related policies the entity uses
to identify, assess, prioritise and monitor climate-relatedrisks, including information about:

The Group conducts a materiality assessment
annually to identify material ESG issues that are
relevant to our business.

(i) the inputs and parameters the entity uses (forexample, information about data sources and the scopeof operations covered in the processes);

For climate-related risks relevant to our business,
we have worked with technical consultants toundertake a physical risk analysis against two
climate scenarios and a carbon pricing analysis
against six transition scenarios. We also consult
regularly with stakeholders on policy, technology andregulatory risks, and participate in numerous industry
platforms, benchmarks and indices in Hong Kongand mainland China, the Asia-Pacific region, andinternationally to benchmark ourselves against ourpeers and identify emerging trends.

(ii) whether and how the entity uses climate-related
scenario analysis to inform its identification of climaterelated risks;(iii) how the entity assesses the nature, likelihood
and magnitude of the effects of those risks (forexample, whether the entity considers qualitative
factors, quantitative thresholds or other criteria);(iv) whether and how the entity prioritises climaterelated risks relative to other types of risk;(v) how the entity monitors climate-related risks; and(vi) whether and how the entity has changed theprocesses it uses compared with the previous
reporting period;(b) the processes the entity uses to identify, assess,prioritise and monitor climate-related opportunities,
including information about whether and how the entity
uses climate-related scenario analysis to inform its
identification of climate-related opportunities; and(c) the extent to which, and how, theprocesses for identifying, assessing, prioritising andmonitoring climate-related risks and opportunities areintegrated into and inform the entity’s overall risk
management process.

Climate-related risks and opportunities are reviewed
and monitored through regular meetings of ourEnterprise Risk Management Working Group andSustainability Steering Committee, annual Strategic
ESG KPIs related to Climate Resilience, working
groups dedicated to implementing specific climaterelated KPIs, and monthly reporting of the
Sustainability Team to top management. Our
executives also regularly discuss climate-related risks
and opportunities with peers and other real estateindustry stakeholders through relevant organizations(e.g., the executive leading our Sustainability Teamis also Co-Chair of the Urban Land Institute’s Asia
Pacific Net Zero Council, which two or three times ayear convenes experts to discuss best practices andinnovations in decarbonization).
Material climate-related risks are identified, managed
and disclosed under our corporate Enterprise Risk
Management Framework. Our executive leading the
Sustainability Team, as the dedicated risk ownerof both physical and transition climate-related risks,
reports to the ERM Working Group regularly on thestatus of climate-related risk management to ensure
adequate control measures are in place. Please referto the Corporate Governance Report section in our2023 Annual Report for detailed information on theoverall risk management approach of the Group. In
addition, annual Strategic ESG KPIs related to climate
resilience are tied to biannual performance reviewsfor relevant departments and individuals, including
the CEO in his reporting to the Board.

Hang Lung Properties Limited
Sustainability Report 2023

163

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Reference Disclosure Description
Paragraph

Wellbeing

Sustainable
Transactions

Appendix

Reference and/or Response

Metrics and targets
27

The objective of climate-related financial disclosures
on metrics and targets is to enable users of general
purpose financial reports to understand an entity’s
performance in relation to its climate-related risks andopportunities, including progress towards any climaterelated targets it has set, and any targets it is required tomeet by law or regulation.

-28

To achieve this objective, an entity shall disclose:-(a) information relevant to the cross-industry
metric categories

Appendix 9 – SASB Content Index(b) industry-based metrics that are associated withparticular business models, activities or other common
features that characterize participation in an industry

Appendix 9 – SASB Content Index(c) targets set by the entity, and any targets it is required
to meet by law or regulation, to mitigate or adapt
to climate-related risks or take advantage of climaterelated opportunities, including metrics used by thegovernance body or management to measure progress
towards these targets

Climate Resilience – Net Zero Commitments by 2050
Appendix 3 – Strategic ESG KPIs

Climate-related metrics
An entity shall disclose information relevant to thecross-industry metric categories of:-(a) greenhouse gases—the entity shall:

Performance Tables – Environmental

29(i) disclose its absolute gross greenhouse gas
emissions generated during the reporting period,
expressed as metric tonnes of CO2 equivalent,
classified as:(1) Scope 1 greenhouse gas emissions;(2) Scope 2 greenhouse gas emissions; and(3) Scope 3 greenhouse gas emissions;(ii) measure its greenhouse gas emissions inaccordance with the Greenhouse Gas Protocol: A
Corporate Accounting and Reporting Standard (2004)
unless required by a jurisdictional authority or an
exchange on which the entity is listed to use a different
method for measuring its greenhouse gas emissions;

Our methodology for calculating GHG emissions is inaccordance with the Greenhouse Gas Protocol.

(iii) disclose the approach it uses to measure its
greenhouse gas emissions including:About this Report
Performance Tables – Environmental
We use the operational control approach to measure
and account for our greenhouse gas emissions.
For the details of the methodology, please referto the footnote of our Performance Tables. For
further information on our measurement approach,
inputs and assumptions for measuring our scope 3(1) the measurement approach, inputs andassumptions the entity uses to measure its greenhousegas emissions;(2) the reason why the entity has chosen themeasurement approach, inputs and assumptions it
uses to measure its greenhouse gas emissions; and164

Hang Lung Properties Limited
Sustainability Report 2023

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Reference Disclosure Description
Paragraph

Wellbeing

Sustainable
Transactions

Appendix

Reference and/or Response(3) any changes the entity made to the measurement
approach, inputs and assumptions during the reporting
period and the reasons for those changes;

emissions, please see Performance Tables - Scope 3
Emissions Data Reporting Methodology.

(iv) for Scope 1 and Scope 2 greenhouse gas emissions
disclosed, disaggregate emissions between:

The reporting boundary of our scope 1 and2 emissions includes the properties under ouroperational control. The Group will review thefeasibility of disaggregating the greenhouse gas
emissions of our associates and joint ventures infuture reporting.

1. the consolidated accounting group; and2. other investees;

1. for Scope 2 greenhouse gas emissions disclosed,
disclose its location-based Scope 2 greenhousegas emissions, and provide information about
any contractual instruments that is necessary to
inform users’ understanding of the entity’s Scope 2
greenhouse gas emissions; andPerformance Tables – Environmental
In 2023, we procured 100% of renewable electricity
for both the landlord and tenant areas at Spring City
66 in Kunming and Parc 66 in Jinan through PPAs.

(vi) for Scope 3 greenhouse gas emissions
disclosed, disclose:

Performance Tables – Scope 3 Emissions Data
Reporting Methodology
Performance Tables – Environmental

1. the categories included within the entity’s measureof Scope 3 greenhouse gas emissions, inaccordance with the Scope 3 categories describedin the Greenhouse Gas Protocol Corporate Value
Chain (Scope 3) Accounting and Reporting Standard(2011); and2. additional information about the entity’s Category 15
greenhouse gas emissions or those associated with
its investments (financed emissions), if the entity’s
activities include asset management, commercial
banking or insurance;(b) climate-related transition risks—the amount andpercentage of assets or business activities vulnerable
to climate-related transition risks;

We are taking initial steps to study thispotential disclosure.

(c) climate-related physical risks—the amount andpercentage of assets or business activities vulnerable
to climate-related physical risks;

Climate Resilience – Climate Adaptation
We have presented the residual climate risks facedby our properties in the Climate Adaptation section
and will develop this disclosure in future reports.

(d) climate-related opportunities—the amount andpercentage of assets or business activities aligned withclimate-related opportunities;

We are taking initial steps to study thispotential disclosure.

(e) capital deployment—the amount of capital
expenditure, financing or investment deployed towards
climate- related risks and opportunities;

We are taking initial steps to study thispotential disclosure.

(f) internal carbon prices—the entity shall disclose:

Climate Resilience – Internal Carbon Pricing Pilot

1. an explanation of whether and how the entity isapplying a carbon price in decision-making (forexample, investment decisions, transfer pricing andscenario analysis); andHang Lung Properties Limited
Sustainability Report 2023

165

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Reference Disclosure Description
Paragraph

Wellbeing

Sustainable
Transactions

Appendix

Reference and/or Response

2. the price for each metric tonne of greenhouse gas
emissions the entity uses to assess the costs of its
greenhouse gas emissions;(g) remuneration—the entity shall disclose:
1. a description of whether and how climaterelated considerations are factored into executive
remuneration and2. the percentage of executive management
remuneration recognised in the current period thatis linked to climate related considerations
32

An entity shall disclose industry-based metrics thatare associated with one or more particular businessmodels, activities or other common features thatcharacterise participation in an industry.

Appendix 9 – SASB Content Index

33

Climate-related targets
An entity shall disclose the quantitative and qualitative
climate-related targets it has set to monitor progress
towards achieving its strategic goals, and any targets it
is required to meet by law or regulation, including any
greenhouse gas emissions targets. For each target, theentity shall disclose:

We have committed to setting near-term (2025),
medium term (2030) and long-term (2050) targets
to reach net zero emissions by 2050, as well as
annual Strategic ESG KPIs for climate resilience andresource management in support of these targets.
In December 2022, SBTi validated and approved
our near- and long-term net zero targets under
SBTi’s Net-Zero Standard framework. More details
are shared in the Climate Resilience chapter.

(a) the metric used to set the target;

Climate Resilience – Net Zero Commitments by 2050(b) the objective of the target;

Climate Resilience – Net Zero Commitments by 2050(c) the part of the entity to which the target applies;

Climate Resilience – Net Zero Commitments by 2050
Our SBTs cover the entire Group.

(d) the period over which the target applies;

Climate Resilience – Net Zero Commitments by 2050(e) the base period from which progress is measured;

Climate Resilience – Net Zero Commitments by 2050

(f) any milestones and interim targets;

Climate Resilience – Climate Mitigation
We also set annual Strategic ESG KPIs and 2025
targets to monitor our progress towards the 2030
and 2050 SBTs. Please refer to the Climate Resilience
chapter for the KPI and target progress.

(g) if the target is quantitative, whether it is an absolutetarget or an intensity target; andClimate Resilience – Net Zero Commitments by 2050
Our SBTs adopt the absolute contraction approach,and we also have internal GHG intensity reduction
targets for 2025 and 2030.

(h) how the latest international agreement on climatechange, including jurisdictional commitments that arise
from that agreement, has informed the target

We committed to achieving net zero value chain
emissions by 2050. Our near- and long-term net zerotargets are endorsed under SBTi’s Net-Zero Standard
framework, which is in line with the 1.5°C trajectory.

An entity shall disclose information about its approachto setting and reviewing each target, and how itmonitors progress against each target, including:

-

34

166

Wellbeing – ESG-linked compensation
The Group sets goals, targets and KPIs related toclimate resilience, such as GHG emissions reduction,
electricity intensity reduction, and conducting climate
adaptation technical analysis. These ESG KPIs
are directly incorporated into our annual appraisal
process for departments and individual employees,
including the CEO.

Hang Lung Properties Limited
Sustainability Report 2023

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Reference Disclosure Description
Paragraph

Wellbeing

Sustainable
Transactions

Appendix

Reference and/or Response(a) whether the target and the methodology for setting
the target has been validated by a third party;

Climate Resilience – Net Zero Commitments by 2050
Our short-term and long-term GHG emissions
reduction targets are approved by SBTi.

(b) the entity’s processes for reviewing the target;

We review the need for updating the targets bymonitoring changes in our target boundary, as well
as developments in GHG emissions accounting
methodologies and target setting guidance, such as
the GHG Protocol and SBTi’s sector guidance.

(c) the metrics used to monitor progress towards
reaching the target; andClimate Resilience – Climate Mitigation
We also set annual Strategic ESG KPIs and 2025
targets to monitor our progress towards our 2030
and 2050 SBTs. Please refer to the Climate Resilience
chapter for the KPIs and our target progress.

(d) any revisions to the target and an explanation for
those revisions.

No revision has been made.

35

An entity shall disclose information about its
performance against each climate-related target
and an analysis of trends or changes in theentity’s performance.

Climate Resilience – Climate Mitigation36

For each greenhouse gas emissions target disclosed,
an entity shall disclose:-(a) which greenhouse gases are covered by the target.

Carbon dioxide (CO2), methane (CH4), nitrous
oxide (N2O) and hydrofluorocarbons (HFCs) are
included in greenhouse gas (GHG) calculations.
Perfluorocarbons (PFCs), sulphur hexafluoride (SF6)and nitrogen trifluoride (NF3) are not applicable.

(b) whether Scope 1, Scope 2 or Scope 3 greenhousegas emissions are covered by the target.

Performance Tables – Environmental
Our GHG emissions targets cover Scope 1, 2 and3 emissions.

(c) whether the target is a gross greenhouse gas
emissions target or net greenhouse gas emissions
target. If the entity discloses a net greenhousegas emissions target, the entity is also required toseparately disclose its associated gross greenhousegas emissions target

Our targets are gross greenhouse gas
emissions targets.

(d) whether the target was derived using a sectoral
decarbonization approach.

Our SBTs are not derived using a sectoral
decarbonization approach as the Buildings Sector
Science-Based Target-Setting Guidance was not inplace at the time we set our targets. We will
monitor the latest development of the Building Sector
Guidance and update our targets as necessary.

(e) the entity’s planned use of carbon credits tooffset greenhouse gas emissions to achieve any net
greenhouse gas emissions target. In explaining its
planned use of carbon credits the entity shall disclose
information including:

The Group currently does not have any plan topurchase carbon credits to offset GHG emissions.
Our priority is to maximize emission reductions
through energy efficiency, renewable energy, andby working with other stakeholders to accelerate
the development and availability of lower-carbon
building materials.

Hang Lung Properties Limited
Sustainability Report 2023

167

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Reference Disclosure Description
Paragraph(i) the extent to which, and how, achieving any net
greenhouse gas emissions target relies on the use ofcarbon credits;(ii) which third-party scheme(s) will verify or certify the
carbon credits;(iii) the type of carbon credit, including whether
the underlying offset will be nature-based or basedon technological carbon removals, and whether theunderlying offset is achieved through carbon reduction
or removal; and(iv) any other factors necessary for users of general
purpose financial reports to understand the credibility
and integrity of the carbon credits the entity plans
to use (for example, assumptions regarding thepermanence of the carbon offset).

168

Hang Lung Properties Limited
Sustainability Report 2023

Wellbeing

Sustainable
Transactions

Reference and/or Response

AppendixIntroduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Appendix 9 – Content Indices for Reporting Guidelines
HKEX ESG Reporting Guide Content Index
Aspects

KPI

Disclosure

Section/ Explanation

Mandatory Disclosure Requirement
Governance
Structure-

A statement from the board containing thefollowing elements:
1. a disclosure of the board’s oversight of ESG issues;
2. the board’s ESG management approach andstrategy, including the process used to evaluate,
prioritise and manage material ESG-related issues(including risks to the issuer’s businesses); and3. how the board reviews progress made against ESGrelated goals and targets with an explanation of
how they relate to the issuer’s businesses.

Joint Statement on Oversight andManagement of Environmental, Socialand Governance Issues

ReportingPrinciples-

A description of, or an explanation on, the applicationof the following Reporting Principles (Materiality,
Quantitative, Consistency) in the preparation of the
ESG report.

About this Report
Performance Tables

ReportingBoundary-

A narrative explaining the reporting boundaries of
the ESG report and describing the process used to
identify which entities or operations are included in
the ESG report. If there is a change in the scope, theissuer should explain the difference and reason forthe change.

About this Report

Environmental
A1:
Emissions

GeneralInformation on:
Disclosure (a) the policies; and(b) compliance with relevant laws and regulations thathave a significant impact on the issuer
relating to air and greenhouse gas emissions,discharges into water and land, and generation of
hazardous and non-hazardous waste.

Climate Resilience
Resource Management
There were no significant fines
or non-monetary sanctions for noncompliance with environmental laws
and regulations that had a significant
impact on the Group during thereporting period.

KPI A1.1

The types of emissions and respective emissions data.

Performance Tables – Environmental
Air emissions including SOx, NOx and
PM are not considered significant inour operations.

KPI A1.2

Direct (Scope 1) and energy indirect (Scope 2)
greenhouse gas emissions (in tonnes) and, whereappropriate, intensity (e.g. per unit of production
volume, per facility).

Performance Tables – Environmental

KPI A1.3

Total hazardous waste produced (in tonnes) and,
where appropriate, intensity (e.g. per unit of production
volume, per facility).

Performance Tables – Environmental

KPI A1.4

Total non-hazardous waste produced (in tonnes) and,
where appropriate, intensity (e.g. per unit of production
volume, per facility).

Performance Tables – Environmental

Hang Lung Properties Limited
Sustainability Report 2023

169

Introduction

Aspects

A2: Useof Resources170

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

KPI

Disclosure

Section/ Explanation

KPI A1.5

Description of emissions target(s) set and steps taken
to achieve them.

Climate Resilience –Climate Mitigation
Resource Management–
Energy Management

KPI A1.6

Description of how hazardous and non-hazardous
wastes are handled, and a description of reduction
target(s) set and steps taken to achieve them.

Resource Management – Waste
and Circularity

General
Policies on the efficient use of resources, including
Disclosure energy, water and other raw materials.

Resource Management

KPI A2.1

Direct and/or indirect energy consumption by type(e.g. electricity, gas or oil) in total (kWh in ’000s)
and intensity (e.g. per unit of production volume,
per facility).

Performance Tables – Environmental

KPI A2.2

Water consumption in total and intensity (e.g. per unitof production volume, per facility).

Performance Tables – Environmental

KPI A2.3

Description of energy use efficiency target(s) set andsteps taken to achieve them.

Resource Management –Energy Management

KPI A2.4

Description of whether there is any issue in sourcing
water that is fit for purpose, water efficiency target(s)set and steps taken to achieve them.

Resource Management – Water
and Circularity
During the reporting period, we did notencounter any problems in sourcing
water for our operations.

KPI A2.5

Total packaging material used for finished products(in tonnes) and, if applicable, with reference to perunit produced.

This KPI is not applicable toour business.

A3: TheEnvironment
and Natural
Resources

General
Policies on minimising the issuer’s significant impacts
Disclosure on the environment and natural resources.

Resource Management

KPI A3.1

Description of the significant impacts of activities on
the environment and natural resources and the actions
taken to manage them.

Resource Management

A4: Climate
ChangeGeneral
Policies on identification and mitigation of significant
Disclosure climate-related issues which have impacted, and thosewhich may impact, the issuer.

Climate Resilience
ISSB IFRS S2 Climaterelated Disclosures

KPI A4.1

Climate Resilience
ISSB IFRS S2 Climaterelated Disclosures

Hang Lung Properties Limited
Sustainability Report 2023

Description of the significant climate-related issues
which have impacted, and those which may impact,
the issuer, and the actions taken to manage them.

Introduction

Aspects

Our Sustainability
Strategy

KPI

Climate Resilience

Resource
Management

Wellbeing

Disclosure

Sustainable
Transactions

Appendix

Section/ Explanation

SocialB1:
Employment

B2: Healthand Safety

B3:
Development
and Training

B4: Labour
Standards

GeneralInformation on:
Disclosure (a) the policies; and(b) compliance with relevant laws and regulations thathave a significant impact on the issuer
relating to compensation and dismissal, recruitment
and promotion, working hours, rest periods, equal
opportunity, diversity, anti-discrimination, and otherbenefits and welfare.

Wellbeing
There were no confirmed incidents
of non-compliance with employment
related laws and regulations that had asignificant impact on the Group during
the reporting period.

KPI B1.1

Total workforce by gender, employment type(for example, full- or parttime), age group andgeographical region.

Performance Tables – Social

KPI B1.2

Employee turnover rate by gender, age group andgeographical region.

Performance Tables – Social

GeneralInformation on:
Disclosure (a) the policies; and(b) compliance with relevant laws and regulations thathave a significant impact on the issuer
relating to providing a safe working environment andprotecting employees from occupational hazards.

Wellbeing – Employee Healthand Safety
Performance Tables – Social
There were no confirmed incidents
of non-compliance with occupational
health and safety related laws andregulations that had a significant
impact on the Group during thereporting period.

KPI B2.1

Number and rate of work-related fatalities occurredin each of the past three years including thereporting year.

Performance Tables – Social

KPI B2.2

Lost days due to work injury.

Performance Tables – Social

KPI B2.3

Description of occupational health and safetymeasures adopted, and how they are implemented
and monitored.

Wellbeing – Employee Healthand Safety

General
Policies on improving employees’ knowledge andDisclosure skills for discharging duties at work. Description oftraining activities.

Wellbeing – Learningand Development

KPI B3.1

The percentage of employees trained by genderand employee category (e.g. senior management,
middle management).

Performance Tables – Social

KPI B3.2

The average training hours completed per employee by
gender and employee category.

Performance Tables – Social

GeneralInformation on:
Disclosure (a) the policies; and(b) compliance with relevant laws and regulations thathave a significant impact on the issuer
relating to preventing child and forced labour.

Wellbeing
Hang Lung's Sustainability Policy
There were no confirmed incidents
of non-compliance with laws andregulations relating to child and forcedlabor that had a significant impact on
the Group during the reporting period.

Hang Lung Properties Limited
Sustainability Report 2023

171

Introduction

Aspects

B5: Supply
ChainManagement

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

KPI

Disclosure

Section/ Explanation

KPI B4.1

Description of measures to review employment
practices to avoid child and forced labour.

KPI B4.2

Description of steps taken to eliminate such practices
when discovered.

We specify in our Code of Conduct
for Contractor that we forbid our
suppliers or contractors to use childlabor and/or forced labor.

General
Policies on managing environmental and social risks
Disclosure of the supply chain.

Sustainable Transactions –Construction Supplier Management
Sustainable Transactions –Operational Supplier Management

KPI B5.1

Number of suppliers by geographical region.

Sustainable Transactions –Construction Supplier Management
Sustainable Transactions –Operational Supplier Management

KPI B5.2

Description of practices relating to engaging suppliers,
number of suppliers where the practices arebeing implemented, and how they are implemented
and monitored.

Sustainable Transactions –Construction Supplier Management
Sustainable Transactions –Operational Supplier Management

KPI B5.3

Description of practices used to identify environmental
and social risks along the supply chain, and how they
are implemented and monitored.

Sustainable Transactions –Construction Supplier Management
Sustainable Transactions –Operational Supplier Management

KPI B5.4

Description of practices used to promote
environmentally preferable products and services
when selecting suppliers, and how they are
implemented and monitored.

Sustainable Transactions –Construction Supplier Management
Sustainable Transactions –Operational Supplier Management

B6: Product
GeneralInformation on:
Responsibility Disclosure (a) the policies; and(b) compliance with relevant laws and regulations thathave a significant impact on the issuer
relating to health and safety, advertising, labellingand privacy matters relating to products and services
provided and methods of redress.

Sustainable Transactions
We ensure that our marketing andpromotional materials comply with
relevant laws and regulations, andavoid making any misrepresentation,
exaggeration or overstatement of theGroup's capabilities.
There were no confirmed incidents
of non-compliance with laws andregulations relevant to health andsafety, advertising, labelling andprivacy matters relating to our
products and services that had asignificant impact on the Group during
the reporting period.

172

KPI B6.1

Percentage of total products sold or shipped subject torecalls for safety and health reasons.

This KPI is not applicable toour business.

KPI B6.2

Number of products and service related complaints
received and how they are dealt with.

Sustainable Transactions – Measuring
Customer Satisfaction
There were no materially significant
complaints received relating to theprovision and use of products andservices during the reporting period.

KPI B6.3

Description of practices relating to observing andprotecting intellectual property rights.

We have relevant policies in place
to observe and protect intellectualHang Lung Properties Limited
Sustainability Report 2023

Introduction

Aspects

Our Sustainability
Strategy

KPI

Climate Resilience

Resource
Management

Wellbeing

Disclosure

Sustainable
Transactions

Appendix

Section/ Explanation
property rights. Our Staff Handbook
provides guidelines on respecting
intellectual property rights. Employees
using infringing copies of copyrightworks in the course of theiremployment may incur disciplinary
action or summary dismissal.

B7: Anticorruption

B8:
Community
Investment

KPI B6.4

Description of quality assurance process andrecall procedures.

Sustainable Transactions –Maintaining Quality Standards
Product recall procedures are notconsidered as material to theGroup's operations.

KPI B6.5

Description of consumer data protection andprivacy policies, and how they are implemented
and monitored.

Our Sustainability Strategy – Data
Privacy and Cybersecurity
Sustainable Transactions – Protecting
Customer Data Privacy

GeneralInformation on:
Disclosure (a) the policies; and(b) compliance with relevant laws and regulations thathave a significant impact on the issuer
relating to bribery, extortion, fraud andmoney laundering.

Our Sustainability Strategy – Ethics
and Integrity
There were no confirmed incidents
of non-compliance with laws andregulations relating to bribery,
extortion, fraud and money launderingthat had a significant impact on theGroup during the reporting period.

KPI B7.1

Number of concluded legal cases regarding corrupt
practices brought against the issuer or its employees
during the reporting period and the outcomes of
the cases.

There were no concluded legal cases
regarding corrupt practices brought
against the Group or its employees
during the reporting period.

KPI B7.2

Description of preventive measures and whistleblowing procedures, and how they are implemented
and monitored.

Our Sustainability Strategy – Ethics
and Integrity
Annual Report 2023 P.124
Whistleblowing Mechanism

KPI B7.3

Description of anti-corruption training provided todirectors and staff.

Our Sustainability Strategy –Sustainability Governance
Performance Tables – Social

General
Policies on community engagement to understand theDisclosure needs of the communities where the issuer operates
and to ensure its activities take into consideration thecommunities’ interests.

Wellbeing – Community Wellbeing

KPI B8.1

Focus areas of contribution (e.g. education,
environmental concerns, labour needs, health,culture, sport).

Wellbeing – Community Wellbeing

KPI B8.2

Resources contributed (e.g. money or time) to thefocus area.

Wellbeing – Community Wellbeing

Hang Lung Properties Limited
Sustainability Report 2023

173

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

GRI Content Index
Hang Lung Properties has reported in accordance with the GRI Standards for the period January 1, 2023 to December
31, 2023.

GRI Standard

GRI

Disclosure

Section/ Explanation

1-R7

Publish a GRI content index

About this Report
Content Indices for Reporting Guidelines

1-R8

Provide a statement of use

Hang Lung Properties has reported in accordance with the
GRI Standards for the period January 1, 2023 to December
31, 2023.

GRI 1: Foundation 2021
Reportingin accordance to
the GRI
Standards

GRI 2: General Disclosures 2021
The Organizationand its reporting
practices

Activities andworkers174

2-1

Organizational details

About this Report
About Hang Lung Properties
Annual Report 2023 P.3 (Corporate Profile)

2-2

Entities included in
the organization’ssustainability reporting

About this Report
We report on our principal subsidiaries in our Annual
Report as required by the Listing Rules. A list of ourprincipal subsidiaries is outlined in the Annual Report
2023 (P.210-212).

2-3

Reporting period, frequency
and contact point

About this Report
This Report was published in March 2024.

2-4

Restatements of information

Performance Tables

2-5

External assurance

About this Report
Independent Assurance Opinion Statement

2-6

Activities, value chain andother business relationships

About Hang Lung Properties
Our Sustainability Strategy
Sustainable Transactions – Sustainability Issues Across Our
Value Chain
Annual Report 2023 P.3, 34-71(Corporate Profile, Review
of Operations)
There were no significant changes in the Group's businessactivities, its value chain, or its business relationships
compared to the previous reporting period.

2-7

Employees

Performance Tables – Social
The Group did not employ non-guaranteed hours employees
during the reporting period.

2-8Workers who are
not employees

Performance Tables – Social

Hang Lung Properties Limited
Sustainability Report 2023

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

GRI Standard

GRI

Disclosure

Section/ Explanation

Governance

2-9

Governance structure
and composition

Our Sustainability Strategy – Sustainability Governance
Annual Report 2023 P.99-134 (Corporate Governance Report,
Profile of the Directors)

2-10

Nomination and selection of
the highest governance body

Annual Report 2023 P.111-112 (Corporate Governance
Report – (II) Delegation by the Board - Nomination andRemuneration Committee)

2-11Chair of the highest
governance body

Our Sustainability Strategy – Sustainability Governance|
Annual Report 2023 P.107-108

2-12

Role of the highest
governance body inoverseeing the managementof impacts

Our Sustainability Strategy – Sustainability Governance
Joint Statement on Oversight and Management ofEnvironmental, Social and Governance Issues

2-13

Delegation of responsibility for
managing impacts

Our Sustainability Strategy – Sustainability Governance
Annual Report 2023 P.124 (Corporate Governance Report –Code of Conduct)

2-14

Role of the highest
governance body insustainability reporting

Our Sustainability Strategy – Materiality Assessment

2-15

Conflicts of interest

Our Sustainability Strategy – Sustainability Governance
Annual Report 2023 P.124 (Corporate Governance Report –Code of Conduct)

2-16

Communication ofcritical concerns

Our Sustainability Strategy – Sustainability Governance
Annual Report 2023 P.124 (Corporate Governance Report –Code of Conduct)

2-17

Collective knowledge of thehighest governance body

Annual Report 2023 P.102-104 (Corporate Governance
Report – Effective and Qualified Board)

2-18

Evaluation of theperformance of the highest
governance body

Annual Report 2023 P.102-104 (Corporate Governance
Report – Effective and Qualified Board)

2-19

Remuneration policies

Annual Report 2023 P.111-112 (Corporate
Governance Report)
Annual Report 2023 P.176-177 (Notes to the
Financial Statement – Emoluments of Directors andSenior Management)

2-20

Process todetermine remuneration

Annual Report 2023 P.111-112 (Corporate Governance
Report - Nomination and Remuneration Committee)

2-21

Annual totalcompensation ratio

Annual Report 2023 P.177 (Emoluments of Directors andSenior Management)
We do not disclose the annual total compensation ratio
due to confidentiality constraints. The Group will consider
disclosing relevant figures in the future.

Hang Lung Properties Limited
Sustainability Report 2023

175

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

GRI Standard

GRI

Disclosure

Section/ Explanation

Strategy, policies
and practices

2-22Statement on sustainable
development strategy

Our Sustainability Strategy

2-23

Policy commitments

Our Sustainability Strategy – Sustainability GovernanceHang Lung’s Sustainability Policy
Hang Lung Code of Conduct for Contractors

2-24

Embeddingpolicy commitments

Our Sustainability Strategy – Sustainability GovernanceHang Lung’s Sustainability Policy

2-25

Processes to remediate
negative impacts

Our Sustainability Strategy – Ethics and Integrity
Whistleblowing Mechanism

2-26

Mechanisms for seeking
advice and raising concerns

Our Sustainability Strategy – Ethics and Integrity
Whistleblowing Mechanism

2-27

Compliance with laws
and regulations

There were no significant fines or non-monetary sanctions
for non-compliance with environmental laws and/or
regulations, or laws and/or regulations in the social andeconomic area, that had a significant impact on the Groupduring the reporting period.

2-28

Membership associations

Memberships and Charters

2-29

Approach to
stakeholder engagement

Our Sustainability Strategy – Stakeholder Engagement

2-30

Collective
bargaining agreements

Performance Tables – Social
Our Code of Conduct for Contractors sets out our
expectations for suppliers in relation to association.
The contractors are expected to respect all rights of
their employees to associate, organize and bargain
collectively in a lawful and peaceful manner, without penalty
or interference.

3-1

Process to determinematerial topics

Our Sustainability Strategy – Materiality Assessment

3-2

List of material topics

Our Sustainability Strategy – Materiality Assessment

Stakeholder
engagement

GRI 3: Material Topics 2021
Materiality
assessment

Material Topics (Economic)
Economic Performance
GRI 3: Material
Topics 2021

3-3Management ofmaterial topics

Message from the Vice Chair
Our Sustainability Strategy – Materiality Assessment
Annual Report 2023 P.12-27 (Chair’s Letter to Shareholders)

GRI 201:
Economic
Performance
2016

201-1

Direct economic value
generated and distributed

Performance Tables – Economics

201-2

Financial implications andother risks and opportunities
due to climate change

Climate Resilience

201-3

Defined benefit plan
obligations and otherretirement plans

Annual Report 2023 P.197-201 (Notes to the Financial
Statements – Employee Benefits)

Procurement Practices

176

Hang Lung Properties Limited
Sustainability Report 2023

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

GRI Standard

GRI

Disclosure

Section/ Explanation

GRI 3: Material
Topics 2021

3-3Management ofmaterial topics

About this Report
Our Sustainability Strategy – Materiality Assessment
Sustainable Transactions – Construction
Supplier Management
Sustainable Transactions – Operational
Supplier Management
Sustainable Procurement Policy

GRI 204:
Procurement
Practices 2016

204-1

Proportion of spending on
local suppliers

Sustainable Transactions – Construction
Supplier Management
Sustainable Transactions – Operational
Supplier Management

GRI 3: Material
Topics 2021

3-3Management ofmaterial topics

About this Report
Our Sustainability Strategy – Materiality Assessment
Our Approach to Sustainability – Ethics and Integrity

GRI 205: Anticorruption 2016

205-1

Operations assessed for risks
related to corruption

Our Sustainability Strategy – Sustainability
Governance Structure
Our Sustainability Strategy – Ethics and Integrity
Our Sustainability Strategy – Risk and Crisis Management
We do not disclose the total number and percentage of
operations assessed for risks related to corruption due toconfidentiality constraints.

205-2

Communication and training
about anti-corruption policies
and procedures

Our Approach to Sustainability – Ethics and Integrity
Performance Tables – Social

205-3

Confirmed incidents ofcorruption and actions taken

There were no concluded legal cases regarding corrupt
practices brought against the Group or its employees during
the reporting period.

Anti-corruption

Material Topics (Environmental)
EnergyGRI 3: Material
Topics 2021

3-3Management ofmaterial topics

About this Report
Our Sustainability Strategy – Materiality Assessment
Resource Management – Energy Management
Appendix 1 – Key Sustainability Trends

GRI 302: Energy
2016

302-1

Energy consumption within
the organization

Resource Management – Energy Management
Performance Tables – Environmental

302-2

Energy consumption outsideof the organization

We do not disclose the energy consumption outside
the organization as we have accounted for the energy
consumption outside the organization in our scope 3
calculation and relevant figures are disclosed in Performance
Table – Environmental.

302-3

Energy intensity

Performance Tables – Environmental

302-4

Reduction ofenergy consumption

Performance Tables – Environmental
Resource Management – Energy Management

Hang Lung Properties Limited
Sustainability Report 2023

177

Introduction

Our Sustainability
Strategy

GRI Standard

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

GRI

Disclosure

Section/ Explanation

GRI 3: Material
Topics 2021

3-3Management ofmaterial topics

About this Report
Our Sustainability Strategy – Materiality Assessment
Resource Management – Water and Circularity
Appendix 1 – Key Sustainability Trends
Hang Lung’s Sustainability Policy

GRI 303: Water
and Effluents
2018

303-1

Interactions with water as ashared resource

Resource Management – Water and Circularity
All of our properties are located in prime locations in cities.
The Group’s operations involve the use of municipal water.

303-2

Management of water
discharge-related impacts

Resource Management – Water and Circularity
We comply with local laws and regulations in
effluent discharge.

303-3

Water withdrawal

Performance Tables – Environmental

303-4

Water discharge

We do not track and therefore do not report theamount of wastewater discharged from our operation.
Water discharged from our operations was transported
to local municipal wastewater systems for treatment. We
adopted various measures in our operations, including waterefficient fixtures and water recycling, to enhance our water
management and help reduce wastewater discharged.

303-5

Water consumption

Performance Tables – Environmental

GRI 3: Material
Topics 2021

3-3Management ofmaterial topics

About this Report
Our Sustainability Strategy – Materiality Assessment
Resource Management – Biodiversity
Appendix 1 – Key Sustainability Trends

GRI 304:
Biodiversity 2016

304-1

Operational sites owned,
leased, managed in, or
adjacent to, protected areas
and areas of high biodiversity
value outside protected areas

304-2

Significant impacts ofactivities, products andservices on biodiversity

304-3

Habitats protected or restored

Resource Management – Biodiversity
All of our properties are located in prime locations incities. Although we expect our operations to have minimal
impacts on natural ecosystems and biodiversity, in our
Sustainability Policy, we set out our commitments tobiodiversity conservation, such as avoiding the developmentof projects and operational activities in ecologically sensitive
and nationally protected sites deemed critical for biodiversity.
In addition, we are examining biodiversity issues relevant toour properties such as bird collisions and our impacts on
surrounding habitats.

GRI 3: Material
Topics 2021

3-3Management ofmaterial topics

About this Report
Our Sustainability Strategy – Materiality Assessment
Climate Resilience – Climate Mitigation
Appendix 1 – Key Sustainability Trends

GRI 305:
Emissions 2016

305-1

Direct (Scope 1)
GHG emissions

Performance Tables – Environmental

305-2

Energy indirect (Scope 2)
GHG emissions

Performance Tables – Environmental

Water and Effluents

Biodiversity

Emissions

178

Hang Lung Properties Limited
Sustainability Report 2023

Introduction

GRI Standard

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

GRI

Disclosure

Section/ Explanation

305-3

Other indirect (Scope 3)
GHG emissions

Performance Tables – Environmental

305-4

GHG emissions intensity

Performance Tables – Environmental

305-5

Reduction of GHG emissions

About this Report
Climate Resilience – Climate Mitigation

GRI 3: Material
Topics 2021

3-3Management ofmaterial topics

About this Report
Our Sustainability Strategy – Materiality Assessment
Resource Management – Waste and Circularity
Appendix 1 – Key Sustainability Trends

GRI 306: Waste
2020

306-1

Waste generationand significant wasterelated impacts

Resource Management – Waste and Circularity

306-2

Management of significant
waste-related impacts

Resource Management – Waste and Circularity

306-3

Waste generated

Performance Tables – Environmental

306-4

Waste diverted from disposal

Performance Tables – Environmental

306-5

Waste directed to disposal

Performance Tables – Environmental

Waste

Supplier Environmental Assessment
GRI 3: Material
Topics 2021

3-3Management ofmaterial topics

About this Report
Our Sustainability Strategy – Materiality Assessment
Sustainable Transactions – Construction
Supplier Management
Sustainable Transactions – Operational
Supplier Management
Sustainable Procurement Policy

GRI 308: Supplier
Environmental
Assessment
2016

308-1

New suppliers thatwere screened using
environmental criteria

Sustainable Transactions – Construction
Supplier Management
Sustainable Transactions – Operational
Supplier Management

308-2

Negative environmental
impacts in the supply chain
and actions taken

Sustainable Transactions – Construction
Supplier Management
Sustainable Transactions – Operational
Supplier Management
The Group evaluates overall supplier performance after
project completion. Through our partnerships with third
parties such as IPE and Sedex, we will further enhance ourassessment by quantifying the number of suppliers withpotential or actual negative environmental impacts.

Hang Lung Properties Limited
Sustainability Report 2023

179

Introduction

GRI Standard

Our Sustainability
Strategy

GRI

Climate Resilience

Resource
Management

Wellbeing

Disclosure

Section/ Explanation

Sustainable
Transactions

Appendix

Material Topics (Social)
Employment
GRI 3: Material
Topics 2021

3-3Management ofmaterial topics

Our Sustainability Strategy – Materiality Assessment
Wellbeing – Employee Wellbeing
Appendix 1 – Key Sustainability Trends

GRI 401:
Employment
2016

401-1

New employee hires andemployee turnover

Performance Tables – Social

401-2

Benefits provided to full-time
employees that are notprovided to temporary orparttime employees

Wellbeing – Employee Wellbeing

401-3

Parental leave

Performance Tables – Social

Occupational Health and Safety180

GRI 3: Material
Topics 2021

3-3Management ofmaterial topics

About this Report
Our Sustainability Strategy – Materiality Assessment
Wellbeing – Employee Health and Safety
Sustainable Transactions – Project Safety Management
Appendix 1 – Key Sustainability Trends

GRI 403:
Occupational
Health and
Safety 2018403-1

Occupational health andsafety management system

Wellbeing – Employee Health and Safety
Sustainable Transactions – Project Safety Management403-2

Hazard identification,risk assessment, andincident investigation

Wellbeing – Employee Health and Safety
Sustainable Transactions – Project Safety Management403-3

Occupational health services

Wellbeing – Employee Health and Safety
Sustainable Transactions – Project Safety Management

403-4

Worker participation,
consultation, andcommunication on
occupational health and safety

Our Sustainability Strategy – Sustainability
Governance Structure
Wellbeing – Employee Health and Safety
Sustainable Transactions – Project Safety Management

403-5

Worker training on
occupational health and safety

Wellbeing – Employee Health and Safety
Sustainable Transactions – Project Safety Management

403-6

Promotion of worker healthWellbeing – Employee Health and Safety
Sustainable Transactions – Project Safety Management

403-7

Prevention and mitigation ofoccupational health and safety
impacts directly linked bybusiness relationships

Wellbeing – Employee Health and Safety
Sustainable Transactions – Project Safety Management

403-8

Workers covered by an
occupational health and safety
management system

Wellbeing – Employee Health and Safety
Sustainable Transactions – Project Safety Management

403-9

Work-related injuries

Performance Tables – Social

403-10Work-related ill health

We do not collect relevant data as our operations do not
involve exposure to significant work-related hazards thatcause ill health.

Hang Lung Properties Limited
Sustainability Report 2023

Introduction

Our Sustainability
Strategy

GRI Standard

GRI

Climate Resilience

Resource
Management

Wellbeing

Disclosure

Section/ Explanation

Sustainable
Transactions

AppendixTraining and Education
GRI 3: Material
Topics 2021

3-3Management ofmaterial topics

About this Report
Our Sustainability Strategy – Materiality Assessment
Wellbeing – Learning and Development
Appendix 1 – Key Sustainability Trends

GRI 404: Training
and Education
2016

404-1

Average hours of training peryear per employee

Performance Tables – Social

404-2

Programs for upgrading
employee skills and transition
assistance programs

Wellbeing – Learning and Development
We have a guideline in place for providing support toemployees who are retiring.

404-3

Percentage of employees
receiving regularperformance and careerdevelopment reviews

Performance Tables – Social

Diversity and Equal Opportunity
GRI 3: Material
Topics 2021

3-3Management ofmaterial topics

About this Report
Our Sustainability Strategy – Materiality Assessment
Wellbeing – Diversity and Inclusion
Appendix 1 – Key Sustainability Trends
Hang Lung’s Sustainability Policy

GRI 405:
Diversity and
Equal
Opportunity 2016405-1

Diversity of governance bodies
and employees

Performance Tables – Social
Please refer to Annual Report 2023 (P.103, 130-134) on thegender diversity of our Board. Two Board members fall under
the age group of 30-50 years old; the rest are all over 50
years old.

405-2

Ratio of basic salary andremuneration of women
to menPerformance Tables – Social

GRI 3: Material
Topics 2021

3-3Management ofmaterial topics

About this Report
Our Sustainability Strategy – Materiality Assessment
Our Sustainability Strategy – Ethics and Integrity
Wellbeing – Diversity and Inclusion
Appendix 1 – Key Sustainability Trends

GRI 406: Nondiscrimination

406-1

Incidents of discriminationand corrective actions taken

There were no confirmed incidents of non-compliance withthe laws and regulations relating to discrimination that had asignificant impact on the Group during the reporting period.

Non-discrimination

Hang Lung Properties Limited
Sustainability Report 2023

181

Introduction

Our Sustainability
Strategy

GRI Standard

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

GRI

Disclosure

Section/ Explanation

GRI 3: Material
Topics 2021

3-3Management ofmaterial topics

About this Report
Our Sustainability Strategy – Materiality Assessment
Our Sustainability Strategy – Stakeholder Engagement
Appendix 1 – Key Sustainability Trends
Hang Lung’s Sustainability Policy

GRI 413: Local
Communities
2016

413-1

Operations with local
community engagement,
impact assessments, anddevelopment programs

Wellbeing – Community Wellbeing
The Group does not conduct social impact assessments tomeasure its impact to the local communities at this moment.

413-2

Operations with significant
actual and potential negative
impacts on local communities

About Hang Lung Properties
Sustainable Transactions – Sustainable Project Management
The Group conducts media searches regularly to identify
any actual and potential negative impacts on the local
community. We are not aware of any significant negative
impacts on the local communities.

Local Communities

Customer Health and Safety
GRI 3: Material
Topics 2021

3-3Management ofmaterial topics

About this Report
Our Sustainability Strategy – Materiality Assessment
Sustainable Transactions – Healthy Building Design
and Certification
Sustainable Transactions – Environmental, Health and
Safety Management
Sustainable Transactions –Indoor Air Quality
Appendix 1 – Key Sustainability Trends

GRI 416:
Customer Healthand Safety 2016

416-1

Assessment of the health andsafety impacts of product andservice categories

Sustainable Transactions – Healthy Building Design
and Certification
Sustainable Transactions – Environmental, Health and
Safety Management
Sustainable Transactions –Indoor Air Quality

416-2

Incidents of non-complianceconcerning the health andsafety impacts of products
and services

There were no confirmed incidents of non-compliance withlaws and regulations relevant to health and safety mattersrelating to our products and services that had a significant
impact on the Group during the reporting period.

GRI 3: Material
Topics 2021

3-3Management ofmaterial topics

Our Sustainability Strategy – Materiality Assessment
Our Sustainability Strategy – Data Privacy and Cybersecurity
Sustainable Transactions – Protecting Customer
Data Privacy

GRI 418:
CustomerPrivacy 2016

418-1

Substantiated complaints
concerning breaches ofcustomer privacy and lossesof customer data

Sustainable Transactions – Protecting Customer
Data Privacy

Customer Privacy

182

Hang Lung Properties Limited
Sustainability Report 2023

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

SASB Content Index
Topic

Code

Accounting Metric

Section/ Explanation

EnergyManagement

IF-RE-130a.1

Energy consumption data coverage as a percentage
of total floor area, by property subsector

100%

IF-RE-130a.2(1) Total energy consumed by portfolio area withdata coverage,(2) percentage grid electricity, and(3) percentage renewable, by property subsector

Performance Tables - Environmental
71%
12.3%

IF-RE-130a.3

Like-for-like percentage change in energy
consumption for the portfolio area with data
coverage, by property subsector

Resource Management –Energy Management

IF-RE-130a.4

Percentage of eligible portfolio that (1) has anenergy rating and (2) is certified to ENERGY STAR,by property subsector

Nil

IF-RE-130a.5

Description of how building energy management
considerations are integrated into property
investment analysis and operational strategy

Resource Management –Energy Management

IF-RE-140a.1

Water withdrawal data coverage as a percentage of(1) total floor area and (2) floor area in regions withHigh or Extremely High Baseline Water Stress, byproperty subsector(1) 100%(2) 100%

IF-RE-140a.2(1) Total water withdrawn by portfolio area with data
coverage and(2) percentage in regions with High or ExtremelyHigh Baseline Water Stress, by property subsector(1) Performance Tables– Environmental(2) 52%

IF-RE-140a.3

Like-for-like percentage change in water withdrawn
for portfolio area with data coverage, byproperty subsector

Resource Management – Water
and Circularity

IF-RE-140a.4

Description of water management risks anddiscussion of strategies and practices to mitigate
those risks

Resource Management – Water
and Circularity

IF-RE-410a.1(1) Percentage of new leases that contain a cost
recovery clause for resource efficiency related
capital improvements and(2) associated leased floor area, byproperty subsector

Not currently tracked.

IF-RE-410a.2

Percentage of tenants that are separately meteredor sub-metered for(1) grid electricity consumption and(2) water withdrawals, by property subsector(1) 69%(2) Not currently tracked.

IF-RE-410a.3

Discussion of approach to measuring, incentivizing,and improving sustainability impacts of tenants

Sustainable Transactions – Tenants

IF-RE-450a.1

Area of properties located in 100-year flood zones,
by property subsector

Climate Resilience –Climate Adaptation

IF-RE-450a.2

Description of climate change risk exposure
analysis, degree of systematic portfolio exposure,and strategies for mitigating risks

WaterManagement

Managementof TenantSustainability
Impacts

ClimateChangeAdaptation

Hang Lung Properties Limited
Sustainability Report 2023

183

Introduction

Our Sustainability
Strategy

Climate Resilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

Code

Activity Metric

Section/ Explanation

IF-RE-000.A

Number of assets, by property subsector

About Hang Lung Properties

IF-RE-000.B

Leasable floor area, by property subsector

Nil

IF-RE-000.C

Percentage of indirectly managed assets, byproperty subsector

Nil

IF-RE-000.D

Average occupancy rate, by property subsector

Please refer to our Annual Report 2023 (P.
46-55, 60-65) for the occupancy rate of ourmajor properties.

Note: The Group discloses against the SASB criteria on a voluntary basis only and the disclosed metrics are not verified byany external party.

184

Hang Lung Properties Limited
Sustainability Report 2023

STOCK COD E

00101

We welcome your feedback on our sustainability report and sustainability performance.
Please share your views with us at Sustainability@HangLung.com.

© Hang Lung Properties Limited 恒隆地產有限公司