S U S TA I N A B I L I T Y R E P O RT
2022

Contents
4

About this Report5

About Hang Lung Properties

6

Message from the Vice Chair

7

Message from the Chief Executive Officer

82022 Highlights

13

Our Approach to Sustainability

33

Climate Resilience49

Resource Management

63

Wellbeing84

Sustainable Transactions

108

Appendix 1 - Key Sustainability Trends

112

Appendix 2 - Memberships and Charters

115

Appendix 3 – Strategic ESG KPIs

119

Appendix 4 – List of Sustainable
Building Certificate

122

Appendix 5 – Performance Tables

137

Appendix 6 – Independent Assurance
Opinion Statement

141

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

145

Appendix 8 – Disclosure on Task Force on
Climate-Related Financial Disclosures (TCFD)

150

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 2023
If there is any discrepancy or inconsistency between the
English and the Chinese versions, the English version
shall prevail.

Introduction

Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

About this Report
This is the 11th sustainability report (the “Report”) for

Reporting Standards and Assurance

Hang Lung Properties Limited (“the Company” or “HangThis Report has been prepared in accordance with

Lung Properties,” stock code: 00101) and its subsidiaries

the Global Reporting Initiative (GRI) Standards with(collectively known as “Hang Lung” or “the Group”).

content defined based on the principles of stakeholder

As the property arm of Hang Lung Group Limited

inclusiveness, sustainability context, materiality, and(“Hang Lung Group,” stock code: 00010), the Group

completeness. It also complies with the Environmental,

produced and issued this Report to disclose information

Social and Governance (“ESG”) Reporting Guide

transparently to our stakeholders on the Group’s material

contained in Appendix 27 of the Rules Governing

sustainability issues from January 1, 2022 to December

the Listing of Securities on The Stock Exchange of31, 2022, unless otherwise specified. This Report follows

Hong Kong Limited (“HKEX”) (ESG Reporting Guide).

our Sustainability Report 2021, which was published

The adoption of these reporting standards ensures

online in May 2022.

that the content presented is accurate, balanced,
clear, comparable, reliable and disclosed in a timely

Scope of this Reportmanner. We identified material ESG topics throughThis Report focuses primarily on the Group’s

ongoing stakeholder engagement and annual materiality

management approach to material sustainability issues.

assessment. Data are reported consistently andEconomic and social key performance indicators (KPIs)

presented in a manner that allows for meaningful

reported across our material topics cover our entire

comparisons over time, and the methodologies used for

operations. To ensure the disclosed data reflect thecalculations are described in the Performance Tables tonormal operating conditions of the properties, unlessenable public review. A list of properties included in theotherwise specified, the reported environmental KPIs

reporting boundary is provided in Appendix 5 to allow

exclude new properties that have been operated byfor comparison. The Report also reflects both positive

the Group for less than one year. Compared to ourand negative aspects of our performance to enable an

Sustainability Report 2021, the KPI reporting scope in thisunbiased and reasoned assessment. Information in thisReport has been expanded to include Heartland 66 inReport has been independently verified by the British

Wuhan. It opened in March 2021 and reached significant

Standards Institution against these aforementioned

occupancy levels in 2022, so a full year of meaningful

standards. Please refer to the Independent Assurance

operational performance data is available for 2022. The

Opinion Statement in Appendix 6.

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. For the full list of
properties, please refer to Appendix 5.

In addition, we support the recommendations of the
Task Force on Climate-related Financial Disclosures(TCFD) and have adopted the framework recommended
by the TCFD to discuss, in Appendix 8, the risks andopportunities brought by climate change, the potential

We also report on our progress towards our

impacts on our business, and the actions we aresustainability targets. In selecting base years for suchtaking to mitigate risks and capture related businesstargets, we consider a number of factors including data

opportunities. Lastly, we have also made our best efforts

availability, timeliness, and representativeness.

to report against metrics required by the Sustainability
Accounting Standards Board (SASB) for the real estate
sector. Please refer to Appendix 9 for details.

4

Hang Lung Properties Limited
Sustainability Report 2022

Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

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 Values
We live up to our brand motto of We Do It
Well by focusing on

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 growthby connecting customers and communities. For detailsof our business performance and outlook, please refer toour 2022 Annual Report.

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 expectations

Our Visionof our customers, tenants and communities.

We create compelling spaces thatenrich lives

Openness: We maintain an open and inclusive culturethat respects diverse opinions. We strive to embrace newideas and cultivate innovative thinking.

Our Mission
We pursue sustainable growth byconnecting our customers and communities

Hang Lung Properties Limited
Sustainability Report 2022

5

Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

AppendicesMessage from the Vice Chair
this marathon with greater speed and effectiveness if wepartner with like-minded organizations.
With regard to upstream emissions, we are exploring
ways to reduce embodied carbon in concrete, steel
and other building materials. We are working withpeers and like-minded organizations including Tsinghua
University, Urban Land Institute and GIGA (RESET®),
among others, to aggregate insights and accelerateinnovative solutions. In late 2022 we also entered intoa memorandum of understanding with CLEANCO2, astart-up affiliated with Zhejiang University, to apply
innovations to reduce embodied carbon in our Westlake
Adriel ChanVice Chair and Chair of the Sustainability Steering Committee

66 development and other projects.
Concerning our downstream emissions, we are very
proud of our groundbreaking partnership with LVMH

Real Estate is, by nature, a long-term business. Though
there are ways to shorten the timeframe for returns byadjusting how the game is played, Hang Lung takes along-term view, and is committed to building long-termvalue for our communities and stakeholders. In 2020,
as we celebrated our sixtieth anniversary, we madea commitment to reduce our carbon footprint in linewith climate science, because we believe it is in our
stakeholders’ best interests. In 2022, we strengthened

that was announced in 2022. Spanning our portfolio of
properties across seven cities in mainland China, thepartnership engages 26 LVMH brands occupying nearly
100 retail spaces with a lettable floor area in excess of
27,000 m2. We co-hosted a Real Estate & Climate Forumwith LVMH in November 2022 which generated morethan 200 ideas, and in late March, we announced our
Common Charter: 20 actions that Hang Lung and LVMH
are pursuing together in 2023 to accelerate progress.

this commitment when we became the first real estate

The willingness of so many like-minded companies

company in Hong Kong and mainland China to havesuch as ours to partner together is encouraging; yet,our near- and long-term emissions reduction targets

we are still just getting started, and we see significant

approved by the Science Based Targets initiative (SBTi).

opportunities to expand our partnerships. Please stay

By 2030, we will need to make significant reductions in

tuned in 2023 for additional initiatives related to ourgreenhouse gas emissions across our value chain. And

suppliers, our tenants, and our customers. We are all inby 2050, we will need to reduce our emissions to close tothis together.

zero and neutralize any residual emissions.
To be sure, this ambitious path will not be an easy one totread, and it will take time and investment before returns
are recognized – not unlike our core business. However,the potential for change is often overestimated in the
short term, and underestimated in the long term. This
paradox gives me hope. What is essential is that we
all get started now, so momentum can build. Here atHang Lung, we have decided that we will be able to run

6Hang Lung Properties Limited
Sustainability Report 2022

Adriel ChanVice Chair and Chair of the Sustainability Steering
Committee (SSC)
April 2023

Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

AppendicesMessage from the
Chief Executive Officer
be fully powered by renewable energy, following ourrenewable energy procurement at our Spring City 66
property in Kunming, Yunnan Province in 2021. Taken
together, almost 25% of our mainland China portfolio’s
electricity demand will be met by renewable energy
in 2023.

3. Launched a New Model of Sustainability
Partnership with LVMH
In October 2022, we announced our groundbreaking
sustainability partnership with LVMH, and in November
2022, the two groups joined forces to hold a highly
innovative sustainability forum. We are keen to extend
Weber Lo
Chief Executive Officer

this spirit of collaboration with all our tenants.

4. Launched Future Women Leaders ProgramThis Sustainability Report 2022 is Hang Lung’s 11th
annual sustainability report. In 2022 we further
accelerated our sustainability progress. Here are five of
our achievements:

1. Net-Zero Targets Approved by Science Based
Targets initiative (SBTi)
In December 2022, the Group became the first realestate company in Hong Kong and mainland China
to receive approval from SBTi for our near- and longterm company-wide emissions reduction targets in linewith the SBTi Net-Zero Standard. Our targets, and our

We launched the Hang Lung Future Women Leaders
program with partners to mentor 200 female students inHong Kong and mainland China. The program supports
talented young women’s development and has actively
engaged the government, industry, and society.

5. This Report
We aim to improve our reporting each year. The reader
will find many new insights in this report, includingtransparent disclosure of our Scope 3 emissions andmore details on how we approach a range of issues. As
ever, we welcome your feedback and partnership.

approach to pursuing them, are discussed in detail inthis report.

2. Parc 66, Jinan, 100% Powered byRenewable Energy

Weber Lo
Chief Executive Officer
April 2023

In December 2022, our commercial development Parc 66
in Jinan, Shandong Province, entered into an agreement
to be 100% powered by renewable energy from January
1, 2023. The renewable energy will cover the total annual
electricity consumption for both landlord and tenant
operations. It is the second Hang Lung property to
Hang Lung Properties Limited
Sustainability Report 2022

7

Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices2022 Highlights
Key Achievements and Initiatives
Celebrated the Hang Lung
As One Volunteer Team’s
10th anniversary. Over the past
decade, 12 teams have set up
11 projects in nine Mainland
cities and Hong Kong, involving

Became the first real estateover 11,400 volunteers withcompany in Hong Kong and

135,000 service hours

mainland China to receive approval

accumulated to date.

from the Science Based Target
initiative (SBTi) for our near- andlong-term company-wide emissions
reduction targets in line with SBTi’s

Procured additional renewableenergy: almost 25% of the mainland
China portfolio’s electricity demand
will be met by renewable energy
in 2023. Parc 66 in Jinan has been
100% powered by renewable energy
from January 1, 2023.

Photo credit: Marie Rouge

Net-Zero Standard.

Launched a pioneering threeyear sustainability partnershipwith LVMH Group to leadclimate and sustainability
action in real estate and retail.

Increased the Employee
Engagement Survey percentile
rank in the Gallup Overall
Database to 68th. Placed in the
top 25% of companies with thefastest growth in the second

Secured 46% of total debts andOver 80% construction floor

available facilities fromarea (CFA) certified tosustainable finance.

LEED / BEAM Gold or above.

year of the survey.

Plaza 66, Shanghai became thefirst large-scale commercial officecomplex in mainland China to
Launched the Hang Lung

receive both LEED V4.0 EB:

Future Women Leaders

O+M Platinum and WELL V2Program with partners

Core Platinum ratings during

to mentor 200 female

its operating stage.*

university students inHong Kong andmainland China.

8

Hang Lung Properties Limited
Sustainability Report 2022

* The information is based on the result
announced on the LEED and WELL
official websites as of January 15, 2023

Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

AppendicesSustainability Awards and AccoladesAwards and Recognition
Distinction Award (Large Organization Category) and Special
Award – Excellence in Pandemic Resilience at the Hong Kong
Sustainability Awards by the Hong Kong Management Association

ESG Award in the Non-Hang Seng Index (Medium Market
Capitalization) Category at the Best CG and ESG Awards 2022
by the Hong Kong Institute of Certified Public Accountants*

Grand Award in Best ESG Report (Large-Cap) at the Hong Kong
ESG Reporting Awards

Excellence Award
in ESG Reportingat the 2022 Best
Annual Reports
Awards by theHong Kong
Management
Association“Employer of the Year” and “Employee Health and Safety (wellbeing) Award” at the Hong Kong HR Awards by the JobsDB HK

Best Company to Work for in Asia by HR Asia Magazine

Outstanding Caring
Company 2022
Award at the Social
Responsibility
Conference

Social Responsibility
Pioneer Award 2022
at the 12th China
Philanthropy Festival* Received byHang Lung Group
Hang Lung Properties Limited
Sustainability Report 2022

9

Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Participation and Performance in Key Benchmarks and Indices

GRESB
4-star performance rating
since 2021

DJSI

FTSE4GoodS&P Global ESG score 60 >> 66

ESG Rating: 3.4

Dow Jones Sustainability Indices

Percentile ranking: 72(Asia Pacific) since 2017

A constituent since 2021

Sustainalytics

Sustainability Yearbook

ESG risk rating:Member 2023

MSCI
“A” rating since 2021

Low risk since July 2020

Hang Seng Corporate

Became a participant of

Sustainability Index

the UN Global Compact“AA” rating in 2022-2023

in 2022

Series member since inception
in 2010

For further information on awards and recognition given to the Group, please visit our corporate website.

10

Hang Lung Properties Limited
Sustainability Report 2022

AppendicesIntroduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

Key Figures
Business Overview

Completed investment properties:
more than

3 million square

Located in

10 cities

meters in Gross Floor Area

4,200+

Number of Employees

Environmental

Scope 1 and 2 GHG
emissions intensity

Absolute Scope 3 GHG emissions

Electricity intensity

Water intensity-38% vs 2018-16.4% vs 2018 baseline-3.8% vs 2021

Operational waste diverted-15% vs 2018 baselinefrom landfill

56%

18,597 hours of

Overall Female-to-male pay ratio

Social

60,631 beneficiaries
from our community
investment programs

employee volunteer services

1:0.978

Hang Lung Properties Limited
Sustainability Report 2022

11

Our
Sustainability
Strategy

Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

Our Approach to Sustainability
Overview
Hang Lung pursues sustainable growth by connecting
our customers and communities, and embeds
sustainability in all aspects of our business. Sustainablegrowth is our mission, and sustainability is a core value.
Our Sustainability Framework, which comprises three“Our mission of sustainable growthhighlights both the financial and ESG
dimensions of sustainability. We recognizethat both are indispensable for ourcontinued success”

foundations and four priorities, provides clear directionfor Hang Lung to define and strengthen a resilientbusiness, make progress on key material issues

Weber Lo, CEOtogether with our stakeholders, and be guided towards
our ambition to become one of the world’s mostsustainable real estate companies.

Hang Lung Properties Limited
Sustainability Report 2022

13

Introduction

Our
Sustainability
Strategy

The Three Foundations describe the core organizational

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices• Top-level commitment and endorsement of policies

contexts and indispensable principles underlying all ofand frameworks to define a clear agenda andour sustainability efforts:

principles for the sustainability context of Hang Lung.

• Company: Strong team, governance, andcommunity relations• Building: Safe, green and healthy space• Customer: Collaboration for impact
The Four Priorities reflect the top four material• Clearly defined roles and responsibilities fromtop management to operations for various
departments and cross-functional committees, toensure appropriate resources and accountability
for implementation.
• Sustainability components are built in to the Group’s

sustainability issues where the Group aims to makeannual Key Performance Indicators (KPIs) andsignificant progress and support its leadership ambitions

annual expenditure reviews to integrate sustainability

in the next decade:seamlessly into business operations.

• Climate Resilience: Adapt to climate change anddecarbonize our business• Resource Management: Optimize use and• Empowerment of employees to take part in
the sustainability journey through an employee
sustainability charter and various capacity building andoutreach opportunities.

management of natural resources (energy, water,and materials)• Wellbeing: Sustain a healthy, inclusive and safe
environment and promote social wellbeing• Sustainable Transactions: Promote sustainability
practices in all types of business transactions

To become one of the world’s most sustainable realestate companies, we are also taking the following steps:• Clearly stipulating our long-term and mid-term
Sustainability Commitment, Goals and Targets todrive aspirations and innovation.
• Aligning with international standards and bestpractices (e.g. Science Based Targets initiative’s NetZero Standard)

Hang Lung Joins the United Nations
Global Compact
As a participant of the United Nations Global
Compact, we are committed to conducting
our business responsibly by aligning ourstrategies, corporate culture and operations with
the Ten Principles concerning human rights,
labor, environment, and anti-corruption acrossthe Group.

• Seeking continual improvement not only within
the Group, but also with peers by participatingin various ESG benchmarks and indices andawards competitions.
• Driving positive sustainability impacts along the value
chain, in addition to efforts within the direct scope ofour business operations and development.
• Enhancing our transparency each year via
annual sustainability reporting and regular media
channels, to share know-how and lessons- learned
with stakeholders.
• Demonstrating thought leadership by sharing our
experience and insights, and interacting with our

Sustainability is a far-reaching, multi-disciplinary concept

industry peers through speaking events and support

impacting every part of our business. We have taken a

to industry associations.

top-down and bottom-up approach to drive employees
and stakeholders towards sustainability leadership. We
will explain our approach in the following chapters; below
is the summary:

14

Hang Lung Properties Limited
Sustainability Report 2022

Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

AppendicesOur 2022 materiality assessment process is set
out below.

2022 Materiality Assessment
Approach
In 2022, we engaged an independent consultant
to conduct a double materiality assessment
and stakeholder research, and both followed theIntroduction

Sustainability

methodology recommended by the EuropeanStrategy
Financial
Reporting Advisory Group. Double materiality means

MIPIM Asia Summit 2022
Keynote Address“My favorite thing about sustainability is thefact that it’s a positive sum game,” said ourVice Chair, Mr. Adriel Chan, at the MIPIM Asia
Summit 2022 Keynote Address on The Leaders'
Perspective - Part I. During his keynote address,
Adriel highlighted the growing sustainability
challenges associated with climate change andbiodiversity, among other concerns.

assessing both how our business is affected bysustainability issues (“outside in”) and how our activities
impact society and the environment (“inside out”).

2022 Materiality Assessment

1

Identify key ESG trends andstakeholders’ concerns
A scanning exercise was conducted to
explore top environmental and social trends
that might affect our business.

2

Identification of relevant ESG issues
24 ESG issues were determined to be
relevant to our business.

Materiality Assessment
The Group has a robust approach to materiality
assessment, stakeholder engagement, trends analysis
and the prioritization of material ESG issues. We

3

Prioritization of material issues

4

Review and validation of materiality
assessment results

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 andour stakeholders. We then prioritize them into a short-listof topics that inform our business strategy, targets andreporting. Every year, we engage a third party to review
and update our assessment.

Findings from a multi-layered prioritization
process were consolidated and weighed in
the model to derive the double materiality
matrix.

The findings were further validated throughone-on-one in-depth interviews with ourstrategic tenants and a focus group
discussion with internal risk owners. The
finalized list of material topics and themateriality matrix were reviewed andapproved by the Chair of the SSC.

Hang Lung Properties Limited
Sustainability Report 2022

15

ClimateResilienceRe
MIntroduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

Issues that Matter: Key Sustainability Trends

Financial institutions are paying attention to biodiversity

To strengthen our understanding of how the fast-

loss. The Taskforce on Nature-Related Financial

changing sustainability landscape presents risks andDisclosures (TNFD), established in 2021, will be

opportunities to our business, we conducted an analysis,

publishing its recommendations in September 2023,

and identified seven global and national sustainability

providing a global framework for organizations totrends that might affect our business. Below is areport on risks from biodiversity loss and ecosystemsummary of our analysis; please refer to Appendix 1 fordegradation. We will look into taking steps tofurther details.

disclose our nature-related risks in line with the

1. Climate Risks: Decarbonization is both a matter of

TNFD recommendations.

strategic importance for our business – an opportunity

Please read more about our work in

if done well, a risk if not – and the right thing to do for

Resource Management.

the planet. We published our net-zero targets validated
by the Science Based Targets initiative (SBTi) in January2023 to help guide our emissions reduction investments
and efforts across our operations and value chain.
In addition, to meet with expectations from investors
and other stakeholders, in 2019 we adopted TCFD’s
recommendations in disclosing how we govern andmanage climate-related risks and opportunities, and arecommitted to improving the quality of our climate-related
disclosures annually.
Please read more about our work in Climate Resilienceand Appendix 8 (TCFD).

4. Environmental Pollution and Waste: Public awarenessand regulatory requirements in Hong Kong and other
cities in mainland China concerning waste management
are increasing. As an owner and operator of commercial
real estate with office, retail and food and beveragetenants, providing adequate facilities and implementing
robust programs to support our tenants and visitors in
waste reduction and recycling practices have become arising priority for us.
In addition, by starting to apply circular principles inprocurement decisions and the design, construction
and operations of buildings, we can reduce operational

2. Productive employment and decent work for all:and embodied carbon emissions and other types of

The ability of Hang Lung to compete and thrive inpollution, as well as reduce our dependency on virgin raw

an increasingly complex market environment hinges onmaterials, reducing our planetary impact and making us

how well we are able to attract, retain and develop

more resilient to potential supply chain disruptions.

the right talent. Employee attraction, retention anddevelopment are among the top issues considered to be
essential to our financial performance and longer-term
enterprise value.
Also, our employment and procurement policies andbehaviors have a direct impact on opportunities for
productive employment and enabling decent work forour employees and suppliers.
Please read more about our work in Wellbeing.
3. Biodiversity: To protect natural habitats andbiodiversity, we aim to minimize the environmental
impacts of our developments through responsible
planning and design, and responsible procurement
practices favoring products and raw materials fromsustainable sources and with lower ecological footprints.

Please read more about our work in Resource
Management and Sustainable Transactions.
5. Health and Wellbeing: As the World Green Building
Council (WGBC) has noted, there are few issues relating
to human health, wellbeing and quality of life that are notimpacted, directly or indirectly, by the attributes of ourbuilt environment. The building and construction sector,
including Hang Lung, can play an active role in protecting
and enhancing the health and safety of its stakeholders– from protecting the health and safety of construction
workers, to preventing illness and promoting wellness for
all, and minimizing adverse impacts on the environment
through how we source materials, construct and operate
our buildings.
Please read more about our work in Wellbeing andSustainable Transactions.

16

Hang Lung Properties Limited
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Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

6. Geoeconomic Confrontation: Geo-economic
confrontation 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 vital to bolster businessresilience to longer-term risks and chart a path forward
for sustainable development. We evaluate potential
market changes that could impact on our operations.
Relevant risks are regularly monitored and managed
under the enterprise risk management (ERM) framework.
Please read more about our efforts to improve
our resource productivity in Resource Management
and in building a more resilient supply chain in
Sustainable Transactions.
7. Diversity and Inclusion: As studies have shown, highlevels of diversity and inclusion are associated withgreater innovation, productivity and performance, talent
recruitment and retention, and workforce wellbeing.
Through policies and programs implemented across
our workplaces, we endeavor to foster an inclusiveand diverse workplace. We also recognize the valuable
contribution of 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
to foster equality and diversity across our communityand value chain. Inequality erodes social cohesion,
diminishes human potential, and might lead to declining
social stability and economic development.
Please read more about our work in Wellbeing.
Identification of Relevant ESG issues
In 2022, we identified 24 ESG issues considered relevant
to our business, including a newly introduced topic of“Human Rights and Labor Practices.”

Hang Lung Properties Limited
Sustainability Report 2022

17

Introduction

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

AppendicesPrioritization of Material Issues

and sustainability and financial reporting standards. The

We assessed the material ESG issues in two ways:

matrix highlights the relative importance of individualon the one hand, by determining their relative impact

issues in terms of their financial impact to Hang Lungand Hang Lung’s impact to society and the environment

to the Group’s financial materiality; and on the otherSustainability
Introduction
Sustainable
Appendixhand, by determining the impact of the Group’s activities
Strategy
Transactions

ClimateResource
Wellbeing
Appendix
in respectof these issues.
The ViceSustainable
Chair of the Group
Resilience
Management
Transactions

Wellbeing– in his capacity as the Chair of the SSC – annually

on issues affecting the sustainable development of thebroader society and environment. We considered andreviews and endorses the materiality assessment result

weighed multiple inputs, including surveys from externaland stakeholder engagement findings.

and internal stakeholders, research into key ESG trends,

MaterialityMatrix
MatrixMateriality
1

Impact to society and the environment

Resource
Management

Our
Sustainability
Strategy

7

3

5
10

2

4
8 6
9 11

16

14
15

12

13

17

23

18

20
21
22

ESG Topics
Environmental

19

Social24

GovernanceImpact to business continuity and development

16
7

1 Energy Efficiency and Carbon Emission Reduction
13 Water, Land and Air Contamination
Social
2 Employee Attraction and Retention
14 Financial Performance and Investor Interests
Environmental
Governance3 Occupational
Health and Safety
15 Adaptability to Climate Change Impacts
Employees
Customers and Communities
4 Employee Development
16 Responsible Supply Chain Management
5 Customer Health and Safety
17 Customer Engagement and Collaboration
2 Employee attraction and18 Information
5 Customer
8 Ethics and integrity
6 Biodiversity
Privacyhealth andEnergyefficiency and7 WasteDisposal and Recycling
19 Risk andCrisis Management
retention
safetycarbonemission
14 Financial performance
8 Ethics and Integrity
20 Social Integration and Accessibility
reduction
3 Occupational health and21 Green
10 Community
engagement
and investor interests
9 Diversity and Equal Opportunities
Building Certification
10 Community Engagement and Investment
22 Grievance
Biodiversity
safetyand Mechanisms
investment
16 Responsible supply chain
11 Employee Wellbeing
23 Human Rights and Labour Practices
417
Employeedevelopment
Customerengagement
Waste
disposalandmanagement
12 Water Efficiency and Leakage
24 Sustainable Financerecycling
12

Water efficiency andreduction

13

Water, land, and air
contamination

15

Adaptability to climatechange impacts

21

Green building
certification

18

Hang Lung Properties Limited
Sustainability Report 2022

9

Diversity and equal
opportunities

11

Employee wellbeing

23

Human rights and labor
practicesand collaboration
20

Social integration andaccessibility

18
19

Information privacy

3.93
3.28
Risk
and crisis
management
3.72 3.19

22

2.90 mechanism
1.84
Grievance

24

Sustainable financeIntroduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

AppendicesMaterial ESG Issues
GRI
Standards

2

Employee Attraction
and Retention

3

Occupational Healthand Safety*

•

•

4

Employee Development

•

•

5

Customer Healthand Safety*

•

•

•

6

Biodiversity

•

•

•

7

Waste Disposal
and Recycling

•

•

8

Ethics and Integrity*•

9

Diversity andEqual Opportunities

10

Community Engagement
and Investment

•

•

•

•

•

•

•

•

Aligned SDGs

Addressedin this ReportMedia

Governments &Regulators

NGO Partners, Academia,& Industry Associations

Communities

Tenants & Customers

1

Energy Efficiency
and Carbon
Emissions Reduction*

Suppliers & Contractors

Investors & Shareholders

Stakeholders impacted

Employees

Material ESG Issues•

GRI 302
GRI 305

GRI 401
GRI 404
GRI 405
GRI 406•

ClimateResilience
Resource
Management

Wellbeing

Wellbeing
•

•

•

•

•

GRI 403

Sustainable
Transactions

GRI 404

Wellbeing

GRI 416

Sustainable
Transactions

•

•

•

•

•

•

•

•

GRI 304

Resource
Management

•

•

•

•

•

•

GRI 306

Resource
Management

•

•

•

•

•

•

•

GRI 205

Our
Sustainability
Strategy

•

•

•

•

•

•

•

•

GRI 405

Wellbeing

•

•

•

•

•

•

•

•

GRI 413

Wellbeing

Hang Lung Properties Limited
Sustainability Report 2022

19

Introduction

ClimateResilience

Water Efficiency
and Leakage

•

•

•

•

•

•

•

13

Water, Land and
Air Contamination

•

•

•

•

•

•

14

Financial Performance andInvestor interests

•

•

•

15

Adaptability to Climate
Change Impacts*

•

•

•

16

Responsible Supply
Chain Management

•

•

•

•

•

* Material issues in 2021

In this Report, we disclose in detail the concerns andideas raised by our stakeholders and our responses
regarding the 16 material issues. In addition, theReport also outlines our management approach andperformance for the remaining topics.

20

Hang Lung Properties Limited
Sustainability Report 2022••

Governments &Regulators

12

Wellbeing

Aligned SDGs

Sustainable
Transactions

Appendices

Addressedin this ReportMedia

NGO Partners, Academia,& Industry Associations•

Communities•

Tenants & Customers

Employee Wellbeing*

Suppliers & Contractors

Investors & Shareholders

11

Resource
Management

GRI
Standards

Stakeholders impacted

Employees

Material ESG Issues

Our
Sustainability
Strategy

GRI 403

Wellbeing•

GRI 303

Resource
Management••

GRI 303
GRI 305
GRI 306

Resource
Management••

GRI 201

Performance
Tables Economics••

GRI 201
GRI 305

ClimateResilience

GRI 204
GRI 308

Sustainable
Transactions

Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

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 byour operations, such as employees, investors, customers, tenants, suppliers and contractors. We also engage withgroups for guidance on our focus areas as well as with those whose interests intersect with our business interests invarious ways, such as local communities, NGO partners, the government, academia, media, and industry associations.
In 2022, we continued to engage regularly with key stakeholder groups, as listed in the table below, 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.

Forms of Engagement

Employees

Tenants and Customers

Communities• Biannual two-way performancecheck-in and review• Regular customer engagement
surveys• Regular drinks sessions withmanagement• Annual tenant satisfaction
surveys and interviews• Regular two-way communication
with international and local
communities at the Board level• Annual dinner• Tenant surveys withsustainability focus• Quarterly corporate newsletterand monthly articles• Regular sustainability newsletter• Annual sustainability-focusedinterviews and focus groups• Annual employee engagement
survey• Ongoing social media
communication throughvarious media• Ongoing community programs• Monthly community events• Quarterly corporate newsletterand monthly articles• Quarterly corporate newsletterand monthly articles• Emerald Award, CEO Award,
Long Service Award• Regular conference(management conference,
functional conferences)

Investors and Shareholders• Ongoing digital platform
communication through intranet,
WeChat• Regular investor interviews,
meetings, roadshows, andinvestor conferences• Regular staff activities• Annual General Meeting• Annual sustainability reporting,benchmarks and indices• Exit interviews

Media

Suppliers and Contractors• Biannual results announcements
and press conferences• Regular project meetings• Occasional media briefings andluncheons• Screening and performance
evaluation• Focus group discussions

NGO Partners, Academia
and Industry Associations• Regular collaboration onsustainability and community
investment initiatives• Regular participation in
conferences, seminars, andnetworking events

Governments andRegulators• Regular meetings• Occasional site visits bygovernment officials• Government consultations

Hang Lung Properties Limited
Sustainability Report 2022

21

Introduction
Introduction

Our
ClimateSustainability Resilience
Sustainability
ClimateStrategy
Strategy
Resilience

Our Sustainability Goals, Targets

Our
Goals, Targets and KPIs
andSustainability
KPIs
Sustainability
andTargets
SustainabilityGoals
Goals
and
Targets
How we formulate our near-term,
mid-term and long-term goals
2050 Net-Zero Commitment

Resource
Wellbeing
Sustainable
AppendicesManagement
Transactions
Resource
Wellbeing
Sustainable
Appendix
Management
Transactions

In December 2021, the Group moved a step further,In
Decembera2021,
Group
a stepby
further,announcing
set ofthe
targets
tomovedbe achieved
the end ofannouncingasetoftargets
tobeachievedbythe endof2025 (“25 x 25 Sustainability Targets” or “25 x 25”).
These
2025
(“25
x 25 Sustainability
Targets”
or “25x 25”).in the
25 x 25
targets
address the fourpriorities
outlined
These
25
x
25
targets
addressthefourpriorities
outlined
Group’s Sustainability Framework, defining concreteandin
the Group’s
Sustainability
Framework,
defining
quantifiablemeasuresto tackle
sustainability
challenges
concreteandquantifiablemeasurestotackleand providing employees with a clear blueprint to the end
sustainability
challengesinclude:
and providing employees with aof 2025. The highlights
clear blueprint for the next four years. The highlights
include:2030 Sustainability Goals and Targets

Climate Resilience

Climate Resilience. Targets related
to Scopesrelated
1, 2, and 3. Targets
emissions,and climate
adaptation.
to Scopesrenewable
1, 2, andelectricity,
3 emissions,renewable

electricity, and climate adaptation.

Resource Management. Targets related to recycling,2025 Sustainability Targets

water use, and landfill diversion.
Wellbeing. Targets related to employee engagement,

Resource Management. Targets

gender pay ratio, people with disabilities, health andAnnual ESG KPIs

related to recycling, water use, andlandfill diversion.

wellness, safety, and youth.

Sustainable Transactions. Targets related to suppliers’
ESG performance, marketing events, leases, sustainablefinance, and asset acquisitions.
The
that sustainability
sustainability leadershipleadership
The GroupGroup recognizes
recognizes that
requiresawell-integrated
setof
short,
mediumand longrequires a well-integrated set of short, medium andlong-term
targets
and KPIs.
term goals,goals,
targets
and KPIs.

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

InIn December
December 2020,
2020, after
after almost
almost aa yearyear ofof internalinternal andexternal
consultation,
the Groupannounced
a setaof
and external
consultation,
the Groupannounced
sustainability
goals andtargetsfor 2030.
set of sustainability
goals
and targets
for Organized2030.
accordingthe four topriorities
our Sustainability
Organized toaccordingthe fourofprioritiesof ourFramework,goals provide
broad provide
principles
governing
Sustainabilitythe
Framework,
the goals
broad
our
efforts,governing
while the ourtargets
providespecificprovide
principles
efforts,
whilemore
the targets
intendedoutcomesfor eachgoal. forThiseach2030
agendamore specificintendedoutcomesgoal.
This
reaffirms
the Group’s
to creating to2030 agenda
reaffirmscommitment
the Group’s commitment

Sustainable Transactions.
Targets related to suppliers’ ESG
performance, marketing events, leases,sustainable finance, and asset acquisitions.

sustainablevalue andvalue
reflecting
our ambition
to becomecreating sustainable
and reflects
our ambitiononeof the world’s
mostsustainable
real estate real
to becomeone of theworld’s
most sustainable

Please see below the full list of 2030

companies.
estate companies.

Sustainability Targets.

22
8Hang Lung Properties Limited
Sustainability Report 2022
Hang Lung Properties Limited
Sustainability Report 2022

Sustainability Goals and Targets and the 25 x 25

Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

Climate Resilience2030 Goal

Reduce carbon footprint in line with climate science2030 Targets

1

Build a nearly net-zero carbon building

2

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

2025 Targets

GHG Intensity
40% cumulative reduction in
GHG intensity (kg CO2e/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 renewable energy

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

GHG Intensity (Tenants)
15% reduction in GHG
intensity (kg CO2e/m2)
from tenants’ electricity
consumption for our
properties in mainland
China, relative to 2018

Embodied Carbon Intensity
Demonstrate best efforts toachieve at least 10%
reduction in embodied
carbon intensity (kg CO2e/m2)
for new development projectthat begin in 2022 or later,compared to typical practicein an equivalent building

Climate Adaptation
Complete technicalanalysis for climate
adaptation measures for
all properties

Resource Management
2030 Goal

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

2030 Targets

3

Incorporate circular building principles in new properties
Implement water management program in all properties
5 Divert 90% of operational waste from landfill
42025 Targets

Construction Waste
60% of constructionwaste diverted fromlandfill for new
projects starting in
2022 with maximized
recycling

Construction
Material Use
Demonstrate best
efforts to maximize
the use of recycled,reused and bio-basedmaterials in all new
projects

Operational
Water Use
10% reduction inwater intensity(m3/m2/year)
relative to 2018

Operational Waste
70% of operational
waste diverted fromlandfill

Hang Lung Properties Limited
Sustainability Report 2022

23

Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

AppendicesWellbeing2030 Goal

Ensure employees, customers and communities enjoy an unrivalled environmentthat promotes their health and wellbeing

2030 Targets

6

Assess wellbeing for all employees and key customers
Meet or exceed wellbeing standards for new properties
8 Work with youth on sustainability solutions in all cities where we have assets
72025 Targets

Achieve an employee
engagement rating greaterthan or equal to the 75th
percentile
Obtain local or international
health and wellness
certification for all our
existing Mainland properties
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 new property in
Hong Kong and mainland
China
Maintain zero work-related
fatalities for employees andcontractors

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

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

Sustainable Transactions
2030 Goal
2030 Targets

2025 Targets

24

Collaborate with all suppliers and customers to advance our sustainability priorities
9

Implement supplier evaluation and ranking system

10 Engage all tenants on emissions reduction, resource management, and wellbeing enhancement

Embrace technology to build
a robust digital platform forassessing suppliers’ ESG
performance

Hang Lung Properties Limited
Sustainability Report 2022

50% of total debts andavailable facilities fromsustainable finance100% of leases
incorporate sustainability
provisions

100% of marketing events
evaluated for theirsustainability impacts

100% of potential asset
acquisitions include
ESG due diligenceIntroduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

Annual ESG KPIs
In October 2020, in support of our 2030 goals andtargets, our Sustainability Steering Committee (SSC)
endorsed the concept of annual strategic ESG KPIs.
The strategic ESG KPIs cascade down to expectations
for individual employees and are tied to the biannual
performance appraisal process.
Nearly 30 strategic ESG KPIs have been identified
every year since 2021. These have empowered us tocollect more data and drive change in areas as varied
as GHG reduction, sustainable procurement for ouroperations and projects, and improving the wellbeing of
our employees. The strategic ESG KPIs are assigned
to relevant department heads in the beginning of theyear with departmental progress directly tied to biannual
performance reviews for employees and management
at all levels, including C-level executives.
We completed all 36 ESG KPIs on schedule in 2022
and identified 28 ESG KPIs for 2023. For the first time,the 2023 ESG KPIs include a “Common Goal” that is
applicable to all departments. For complete details of
the 2022 and 2023 Strategic ESG KPIs, please see
Appendix 3. We disclose these KPIs publicly not only
to hold ourselves accountable, but also to encourage
stakeholder collaboration in all the areas identified.
While we are pleased with our ESG KPIs progress in thelast two 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.

Hang Lung Properties Limited
Sustainability Report 202225

ourcenagement

Introduction

Wellbeing

Sustainable
Transactions

Our
Sustainability
Strategy

ClimateResilience

Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

Appendix

Sustainability GovernanceIntroduction

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

The Group acknowledges the need for effective and strong sustainability governance, including clear definitions ofaccountabilities, roles and responsibilities among various parties.

Sustainability Governance Structure

er 2021, the Group moved a step further,a set of targets Our
to besustainability
achieved by governancethe end of structure is summarized as follows:

Sustainability Governance Structure

25 Sustainability Targets” or “25 x 25”).

25 targets address the four priorities outlined
BoardsAudit Committees
p’s Sustainability Framework,
defining

Oversight of risk managementd quantifiable measures to tackle
systemty challenges and providing employees with a

Boards of Directors
Oversight of ESG/sustainability
strategy with view to long-term
development of the Group

int for the next four years. The highlights

silience. Targets related to Scopes 1, 2, and 3

renewable electricity, and climate adaptation.

Management. Targets related to recycling,

Top Management
Strategic direction andmanagement including ofenterprise risks and ESG KPIs

and landfill diversion.

Targets related to employee engagement,

ratio, people with disabilities,
healthandEnterprise
Risk

Management Working Groupafety, and youth.

Identify and managee Transactions. Targetsenterprise-level
related to suppliers’
ESG risks

Sustainability Team
Detailed strategy
formulation, coordinationand implementation

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

mance, marketing events, leases, sustainabled asset acquisitions.
Subcommittees(e.g. Sustainable Finance
Subcommittee, Health and
Safety Subcommittee)

In 2022, we continued to strengthen and refine ourapproach and strategy, as well as their role in reviewing

sustainability governance at all levels.

progress against ESG-related goals and targets. The
Boards’ engagement on sustainability issues is robust.

Board Engagement

In 2022, the Boards received a briefing providing updates

The Boards of Directors of Hang Lung Group and Hang

on TCFD and International Sustainability Standard Board

Lung Properties (the “Boards”) have overall responsibility(ISSB) reporting requirements.

for the Group’s ESG strategy and reporting. They also
provide oversight of sustainability trends, risks andopportunities affecting the long-term development andpositioning of the Group.
In 2020, the Boards issued a Joint Statement on
Oversight and Management of Environmental, Socialand Governance Issues (the Joint Statement). This
statement elaborates on the Boards’ ESG management

26

Hang Lung Properties Limited
Sustainability Report 2022

In response to the requirements of the HKEX Corporate
Governance Code, the Group adopted an update in 2022
– the inclusion of an annual review by the Boards of theadequacy of resources on the Group’s ESG performanceand reporting, and any material risks relating to ESG.

Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

The Vice Chair of the Boards is also the executive

across all aspects of the business to ensure we pursue

responsible for overseeing the Group’s Sustainability

our ambitious goals, targets and strategic ESG KPIs in a

Steering Committee and its Sustainability Team,

coordinated fashion. It also reports to the Enterprise Risk

the department dedicated to sustainability. The

Management (ERM) Working Group, as risk owner for the

Sustainability Team reported twice to the Boards

Group’s response to climate change transition risks andin 2022.

physical risks.

Top Management

Sustainable Finance Subcommittee

The top management of the Group provides oversight

The Sustainable Finance Subcommittee (SFS) reportsof the Group’s sustainability performance and progressto the SSC. Chaired by the Chief Financial Officer,

towards achieving its long-term sustainability goals andthe SFS is comprised of executives responsible fortargets, and its annual sustainability-related KPIs.

finance, sustainability, project planning and construction,

The Sustainability Team reports to each of the Vice Chair
and the CEO at least once a month. In addition, the direct
reports of the CEO and Vice Chair all have sustainabilityrelated KPIs for themselves and their departments
against which their performance is measured twice ayear. The CEO in turn reports to the Boards twice ayear on the progress of the KPIs of the entire top
management team.

Sustainability Steering Committee
The Sustainability Steering Committee (SSC), currently
chaired by the Vice Chair of the Group, and comprising
13 executives from major departments, meets regularly
to ensure that understanding of and expectations forsustainability are aligned across the Group. The SSC
also supports long-term strategy development, theimplementation of plans and progress tracking. The
Terms of Reference of the SSC are available on our
website. The SSC meets at least twice a year, andsenior executives from various departments will update
members on the progress of the current projects andfuture plans regarding sustainability. In 2022, the SSC

operations, and treasury. The SFS meets regularly
to discuss the latest market developments andthe Group’s plans for sustainable finance. The SFS
oversees the usage of sustainable finance and approved
eligible projects as required by Hang Lung Properties
Green Finance Framework (until December 2022), now
superseded by the Hang Lung Group Sustainable
Finance Framework (from January 2023).

Health and Safety Subcommittee
To advance the Group’s health and safety agenda
as well as to exchange best practices and lessons
learned across all aspects of our business, the Groupestablished a Health and Safety Subcommittee (HSS)
in 2022. The HSS is comprised of representatives
from human resources, operations, project planning andconstruction, legal, internal audit and sustainability. The
HSS meets at least twice a year to monitor safety-related
developments, data and trends, and to identify ways tostrengthen the Group's safety procedures, culture andperformance. It also regularly reports on its progress to
the SSC.

endorsed two updated policies (the Sustainability Policy

Employees are encouraged to share ideas, safety

and the Sustainable Procurement Policy), and one newconcerns and observations and other issues with

policy (the Health and Safety Policy). Any changes ormembers of the HSS. The HSS in turn makes

updates to these sustainability-related policies shall berecommendations to the SSC, top management, and/or

reviewed and endorsed by the SSC.

specific departments as appropriate to support continual
improvement of the Group’s health and safety.

Sustainability TeamOur Sustainability Team serves as a central function
supporting the entire business in advancing its
sustainability leadership ambitions. Led by the Deputy
Director – Sustainability, it reports directly to the Vice
Chair. In addition to reporting regularly to the Boards
and top management, the Team works with colleagues
Hang Lung Properties Limited
Sustainability Report 2022

27

Introduction

Our
Sustainability
StrategyEnterprise Risk Management Working Group

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions• Sustainable Procurement Policy (link) – promotes

To ensure proper oversight of the Group’s risksustainable procurement decisions and practices,management, the ERM Working Group reports directly

and strengthens sustainability collaboration withto the Audit Committees. Each enterprise-level risk is

our suppliers.

assigned to a risk owner who must continually monitor
said risk and report to the ERM Working Group.

Appendices• Hang Lung Group Sustainable Finance Framework(link) – demonstrates how the Group intends to pursue

The Group acknowledges that ESG-related risks havesustainable finance transactions. The Sustainable

become more important in recent years, and in response,

Finance Framework was developed in 2022 andwe focus more on their internal oversight. Climate risk

supersedes the Hang Lung Properties Green Financeremains one of the enterprise-level risks in 2022, and we

Framework from 2023.

have completed the annual review of our risk exposure• Sustainability Steering Committee Terms ofand risk mitigation measures. In 2022, we expanded ourReference (link) – the SSC comprises a cross-section

scopes 1 and 2 mitigation plan into a 2023-2025 climateof senior executives, and provides a dedicatedresilience plan covering scopes 1, 2 and 3 and otherstructure for the Group to advance its goal of achieving

climate-related issues. We also completed an annual

sustainability leadership. The terms of reference

review of our latest materiality assessment of ESG-

provide a framework for the general mandate andrelated risks, in order to determine whether the results

effective functioning of the SSC.

warrant any adjustments to our enterprise-level risks.

Sustainability Policies
Key Sustainability-Related Policies andGoverning Documents• Policy on Transactions with Connected Parties –governs all transactions involving connected parties,
all the proposed transactions should be assessed by
the Company Secretary on compliance issues.

Board Policies and Documents:

Ethics and Integrity• Joint Statement on Oversight and Management ofIntegrity is one of the Group’s core values upon which we

Environmental, Social and Governance Issues (link) –explains the Boards’ oversight of ESG issues and how
the Group approaches the management of ESG issues.
• Board Diversity Policy (link) – sets out the Group's
approach to achieve diversity on the Boards.

build a sustainable future for our investors, clients andpeople. We are proud to uphold a zero-tolerance policy
with regard to corruption and dishonesty, and to havesystems and procedures that enhance transparency andaccountability at all levels. Our previous motto, We Do
It Right, has evolved into We Do It Well, with both

Corporate Policies and Documents:

expressions evoking this foundational feature of our

A set of group-level policies has been developed tocorporate culture.

govern the Group’s approach to various sustainability
issues. The policies are publicly available on the

Code of Conduct

corporate website.

Acts as a benchmark of ethical behavior for all directors• Sustainability Policy (link) – outlines our approach
to pursuing sustainability leadership over the next

and staff members to follow.
• Equal Employment Opportunities Policy (seedecade, including our Sustainability Framework, 2030

Code of Conduct, part 13.1) (link) – sets

Goals and Targets, and details of implementationout guidelines to ensure we provide a workand governance.

environment that is free from all forms of• Health and Safety Policy (link) – outlines our approachto safety management in our workplaces, properties,
and construction sites.

unlawful discrimination. It is applicable to all humanresources policies and practices including staff
recruitment and selection, staff transfer, promotion,
training and development, discipline, termination, andcompensation and benefits.

28

Hang Lung Properties Limited
Sustainability Report 2022

Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

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

Anti-Corruption Policy to strengthen our integrity culture.

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

The policy sets out the conduct the Group forbids andprivacy and the confidentiality of employee personal

the practices the Group expects from its stakeholders.

data, and to comply with applicable legislation.

It also provides guidance for staff members to prevent• Occupational Health and Safety Policy (see Codeof Conduct, part 13.3) (link) – outlines the Group's
commitment to providing a safe and healthy
environment for employees, including occupational

corruption and malpractice in the workplace.
We uphold our culture of integrity by multiple means:• Relevant requirements for our staff are provided insafety guidelines to be observed by all directors andour Staff Handbook, Code of Conduct, Anti-Corruption

staff members.

Policy, and our Policy on Offering and Accepting

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 thefollowing policies for our employees:• Grievance Policy and Procedures – establishes aproper channel for employees to voice out andsettle their grievances. The grievance mechanism
is designed and managed by the Group's Human
Resources department, which will regularly review andfurther improve the effectiveness of the mechanism.
• Employee Cybersecurity Policy – provides
guidance to employees on maintaining a secure
working environment and especially protecting
confidential information.
• Policy on Offering and Accepting Advantages andEntertainment – provides guidelines to all staff
members when offering and/or receiving advantages
and/or entertainment during the normal course ofbusiness, including prohibitions. Clear approval andmonitoring procedures are established to ensure strict
compliance with this policy.

Advantages and Entertainment;• Employees are reminded twice a year to declare in
writing and seek approval from a senior executive of
the Group when an actual or a potential conflict ofinterest arises;• 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,
zero-tolerance approach to bribery and corruption, andways to handle improprieties with case studies. At theend of the program, participants must pass a test
to demonstrate they have sufficient knowledge of the
topic. The online introductory training is mandated for
new staff, with refresher training required for all otherstaff annually;• In 2022, 317.5 hours of training on the introductionof Property Management Service Ordinance and 153
hours of training on risk management for Property
Management Practitioners were completed. Bothexternal training sessions covered topics related to risk
management, corruption prevention and staff integrity;

The Boards and the top management also adhere to high• Relevant requirements for our vendors/suppliers are

standards of business ethics. We regularly communicate

embedded in our Code of Conduct for Contractors,

relevant laws and regulations related to integrity. The

as an integral part of tendering documents and/or

Boards of Directors are required to declare their interest

service agreements;

annually in a statement of interests, and all executive
staff are required to declare any conflict of interest on ahalf-yearly basis.

Anti-Bribery and Anti-Corruption• Periodic letter reminders are issued to all vendors/
suppliers to remind them of our integrity standards
and our available whistleblowing channel for themto raise any concerns about bribery, corruption or
any malpractice.

Fraud and corruption are considered serious and subject
to periodic monitoring as an enterprise risk under our
ERM framework. In 2022, the Group established an
Hang Lung Properties Limited
Sustainability Report 2022

29

Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

Whistleblowing Policy

Anti-Competition

The Group is committed to establishing and maintaining

The Group’s Competition Law Policy sets out the Group's

best practices in corporate governance. All directors,

policy of compliance with competition law, including theemployees and related third parties are expected toCompetition Ordinance (Cap 619) in Hong Kong and the

conduct themselves with integrity, impartiality andAnti-Monopoly Law and Anti-Unfair Competition Law inhonesty with zero tolerance for unethical behavior. A

the People’s Republic of China.

whistleblowing mechanism has been established forinternal stakeholders (such as employees and directors)

Code of Conduct for Contractors

or external stakeholders (such as consultants and

The Code sets out the compliance standard expected

contractors, customers and tenants) to seek adviceof suppliers and contractors when conducting businessand raise serious concerns about matters related towith the Group. The Code includes requirements for

suspected or actual improprieties or any behavior thatcompliance with laws and regulations, conducting

may constitute misconduct or malpractice, or otherbusiness ethically, care for employees, responsible labor

irregularities that should be reported.

practices, responsibility to the communities, and ethical

The Group respects that whistleblowers may wish to
file their concerns in confidence 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 identityof whistleblowers as well as all information collected,
and only limited parties are granted access on a needto-know basis. Associated investigations are governed

use of information.

Risk and Crisis Management
The Group’s Risk Management Framework explains
the role of the Boards, Audit Committees andManagement in relation to the design, implementation,and maintenance of a sound and effective risk
management framework, and the principles underlying
our risk governance structure.

by an independent investigation panel comprisingEnterprise Risk Management

senior executives from legal, human resources, internal

Effective risk management is critical to the Group’s

audit and/or relevant corporate functions to ensure allvalue creation, business continuity and resilience. It

complaints are handled consistently, objectively andrequires understanding risks throughout all phases of

impartially. Remedial actions will be taken in accordance

our business from asset selection, acquisition, andwith final investigation findings. The results of suchallocation, to ownership, management, and divestment.

investigations are reported to the Audit Committees

We are committed to continually enhancing our ERM

twice every year.

framework, linking it to our corporate strategies as well

The whistleblowing policy is subject to periodic review
and communicated to all stakeholders via various

as integrating it into our day-to-day operations anddecision-making processes.

channels (such as websites, periodic circulars and

The Group maintains and regularly reviews its

correspondences, training, tender documents and terms

Business Continuity Plan to ensure that key businessof contracts, etc.). Our full whistleblowing policy is alsofunctions vital to the Group’s operations always remain

available on our corporate website.

uninterrupted, especially in the event of crisis, emergency
or disaster.

30

Hang Lung Properties Limited
Sustainability Report 2022

Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

AppendicesCrisis Management

During 2022, we introduced a corporate-wide document

The Group also maintains a comprehensive crisis

sensitivity labeling system to help departments trace

management system that ensures its preparedness toactivities on confidential documents and detect cyber

respond to and recover from emergencies. Our Crisis

threats and data loss and leakage risks. We also makeManagement Manual sets out the principles, guidelines

use of data analytics and robotic process automationand measures across three areas – prevention, response

to improve security operations and management

and recovery. This approach ensures that relevant

efficiency. In addition, we engaged external security

personnel have clear guidance on their crisis roles

professionals to test our vigilance through phishingand responsibilities.

emails and attack simulation. We plan to advance our

Crisis drills are conducted every 12-24 months at each
property. They aim to strengthen the awareness andthreat monitoring capabilities, enhance cyberattack data
exfiltration prevention and monitoring.

skills of the crisis management team in protecting
our corporate reputation and ensuring effective
communication among departments in a crisis. Crisis
management training is mandated for new joiners,
while all existing colleagues must conduct the crisis
management refresher program annually.

Data Privacy and Cybersecurity
To effectively manage risks of cyberattacks and dataleakage, cybersecurity is one of the principal risks
monitored under our ERM framework. Multiple policies
covering security control, risk management and incident
handling minimize cyber threats and ensure dataprotection, and we annually review and/or update theemployee cybersecurity policy to keep ourselves up
to date with the latest regulations and benchmark tobest practices.
All new employees with company email addresses are
required to complete compulsory online cybersecurity
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 regularly share practicalsecurity tips with our employees from their personal
life and work perspectives to raise their awareness ofcybersecurity. We implemented cloud governance acrossthe Group, setting up a dedicated security operation
center function for continuous threat monitoring, andstrengthening measures for remote and third-party
access to corporate data.

Hang Lung Properties Limited
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31

Climate
Resilience
Adapt toclimate change
and decarbonize
our business| Relevant GRI Disclosure |201 (2016), 302 (2016), 305 (2016)

Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

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. In 2022, we became the first real estatecompany in Hong Kong and mainland China to receive approval fromthe Science Based Targets initiative (SBTi) for our near- and long-term
company-wide emissions reduction targets in accordance with the SBTi
Net-Zero Standard (Net-Zero Standard). In this chapter, we share ourcomprehensive steps in support of achieving our ambitious emissions
reduction targets, as well as our adaptation efforts in response to thephysical risks from climate change.

2022 Performance Highlights

Hang Lung Properties'
near and long-termscience-based emissions
reduction targets werevalidated by the SBTi.

Completed powerpurchase agreement sothat Parc 66 in Jinan has
become 100% poweredby renewable energy
from January 1, 2023.

38.28% reduction in
GHG Emissions Intensity(Scope 1 and 2) vs2018 baseline
3.8% reduction inabsolute GHG Emissions(Scope 3) vs 2021

Hang Lung Properties Limited
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33

Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

Our Approach
In pursuing climate resilience, we aim to manage bothtransition 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: for leadership;
Sustainability
Introduction
to help contribute solutions to theclimate crisis;
and toStrategy

strengthen relationships with like-minded stakeholders
and customers.

“The challenge of climate change is sobig. There’ll be setbacks and challenges but
persevere and don’t give up! Otherwise, thecosts are just too much for the human race
to bear.”
ClimateResource
Resilience
Management
Adriel Chan,

Wellbeing

Sustainable
Transactions

Appendix

Vice Chair and Chair of Sustainability
Steering Committee

Adaptatio

2030 Goal

Reduce carbon footprint in line with climate science20222025 Targets

2022 Tech• 11 propert• 5 propertie
China

GHG Intensity

Electricity Intensity

Renewable Energy

40% cumulative
reduction in GHG
intensity (kg CO2e/m2)
relative to 2018

18% cumulative reduction
in electricity intensity(kWh/m2) relative to 2018

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

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

GHG Emis
0.07

GHG Intensity (Tenants)

Climate Adaptation

Embodied Carbon Intensity

15% reduction in GHG
intensity (kg CO2e/m2)
from tenants’ electricity
consumption for our
properties in mainland
China, relative to 2018

Complete technicalanalysis for climate
adaptation measures
for all properties

Demonstrate best efforts to achieve
at least 10% reduction in embodied
carbon intensity (kg CO2e/m2) for
new development project that begin
in 2022 or later, compared to typicalpractice in an equivalent building

GHG Emissions Intensity (tCO2e/m2)

0.06
0.05
0.04
0.03
0.02
0.01
0.00

34

Hang Lung Properties Limited
Sustainability Report 2022

2

Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

Climate-Related Risks and Opportunities
In 2022, 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

Potential consequences

Our responses• Increased operating andmaintenance costs• Undertaking detailed physical risk analyses at sixteen properties
across mainland China and Hong Kong to examine their
exposure, sensitivity and adaptative capacity to hazards

Physical risks
Acute physical changes,
such as increased
severity and frequencyof extreme weather
events, e.g., typhoons,intense precipitation,
flooding, andextreme temperature• Reduced revenue due tobusiness disruptions• Increased
insurance premiums• Increased health andsafety hazards• Installing floodgates at entrances, sump pump and providing
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 caused by strong winds and heavy rain (e.g.,
typhoons, flooding, storms)• In Westlake 66, Hangzhou, we improved the design parameters
for outdoor temperature to allow a high buffer for risingtemperature in the future• Improved crisis response plans at all our properties to align withinternational standards

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

• Increased operating andmaintenance costs• Optimizing the operating efficiency of HVAC systems to reduce
electricity consumption despite rising temperatures• Reduced revenue due tobusiness disruptions• Incorporating climate resilient features into the building designsof our new projects. For instance, in several new projects weare including overflow pipes on the roof and lowest floor, and areserve floodgate for car ramp entrances.

• Write-offs andearly retirement ofexisting assets• Reduced
workforce productivity• Strengthening flooding mitigation measures on construction
sites, e.g., MEP equipment elevated or anchoredTransition risks
More ambitious climate
policies and regulations
to support international
decarbonization efforts• Increased
compliance costs• Committed to making greenhouse gas reductions in line withclimate science• Increased
operating costs• Conducted a carbon pricing analysis in 2022 (building on our firstsuch analysis in 2021) to understand our potential exposure tocarbon price risk up to 2050
• Regularly monitor regulatory changes in laws, policies andregulations to ensure compliance

Changing investor
sentiment favoring
increased climate
advocacy or divestingfrom businesses that failto implement effective
measures to manage
climate risks• More stringent
reporting obligations• Maintain high transparency on ESG issues to build trust andconfidence among our investors and other stakeholders• Reduced availabilityof capital• Report against globally recognized frameworks such as
TCFD, CDP and GRI to facilitate a clear assessment of ourclimate performance.

Hang Lung Properties Limited
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Introduction

Growing stakeholder
preference forcompanies andproperties that are
more prepared forclimate change

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices• Reduced revenue• Regularly analyze emerging industry trends regularly• Property devaluation• Maintain close communication with stakeholders to understandtheir concerns and expectations• Make efforts to demonstrate to our stakeholders our climate
resilience through annual reporting, investor meetings, speaking
engagements, etc.

Opportunities
Economic or policy
incentives that support
the transition to a lowcarbon economy• Reduced
operating costs• Applying for subsidy schemes in Hong Kong and mainland China
to fund energy efficiency projects• Introduction of
new technologies• Raised funds to finance environmental projects under our
Sustainable Finance Framework and Sustainability-Linked Loans• Access to capital
Higher building energy
efficiency and better
operational
management• 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 enhancebuilding energy efficiency, including optimization of HVAC andlighting systems in most Hong Kong and mainland China
properties, and lift modernization and upgrading works in threeproperties in Hong Kong
• Leveraged digital data collection and analysis platform
to enhance data accuracy, reporting effectiveness andworking efficiency• Piloted an artificial intelligence technology in the headquarters of
the Standard Chartered Bank Building to drive energy efficiency
improvements; expect to achieve an electricity reduction of 10%
or more from HVAC consumption

On-site renewableelectricity generation
at our properties
and offsite renewableelectricity procurement• Reduced electricity
costs and hedge against
rising grid prices

Collaboration withpeers and industry
associations to drive afaster transition to a
low-carbon economy• Synergies with partners
that increase thebusiness rationale andenhance the benefits• Increased asset value
and market valuation• Procured renewable energy for 100% of our electricity needs at
Parc 66 in Jinan• Installed on-site solar panels at eight properties which generateover 600 MWh of renewable energy annually• Collaborating with business communities to combat climatechange. We are one of the founding signatories of the Business
Environment Council (BEC) Low Carbon Charter, the firstbusiness-led carbon reduction initiative in Hong Kong
• Exchanged ideas with peers on embodied carbon targets,challenges and plans at an Urban Land Institute (ULI) event• Supporting local and international climate-related initiatives, suchas committing to the SBTi’s Net-Zero Standard and the UN Global
Compact’s Business Ambition for 1.5°C campaign

Growing stakeholder
preference forcompanies andproperties that are
more prepared forclimate change• Attract and retain highvalue tenants• Attract and retain talent• Higher marketability• Obtaining green building certifications for all new projects• Demonstrating how we are preparing for and responding toclimate change, including by completing technical analysis forclimate adaptation measures in all properties by 2025.
• Highlighting our sustainability commitments and progress in our
recruiting efforts• Collaborating with our tenants on sustainability initiatives,
including ones related to emissions reduction andenergy efficiency

36

Hang Lung Properties Limited
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Introduction

Our
Sustainability
Strategy

Science Based Target and
Net Zero Standard

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

AppendicesLong-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.
Net-Zero Carbon Operations Commitment
We are the first real estate developer in Hong Kong,and among the first in Asia, to commit to the ULI

Further to our commitment to the Science Based Targets
Initiative’s (“SBTi”) Net-Zero Standard in December 2021,
the SBTi verified and approved Hang Lung Properties
Ltd.’s net-zero science-based target in December 2022.
We are the first real estate company in Hong Kong andmainland China – and among the first globally – tohave its near- and long-term net-zero targets endorsed
under SBTi’s Net-Zero Standard framework. In keepingwith the SBTi Criteria and Recommendations (version5.0), our targets follow a 1.5°C trajectory .
The Group will prioritize direct emissions reductions andall residual emissions will be neutralized (if applicable) inline with SBTi criteria and the imperative of trying to limit
global temperature rise to 1.5°C before reaching net-zeroGreenprint’s net zero carbon operations goal. Launchedby the Urban Land Institute’s Greenprint Center for
Building Performance, the goal is in line with theParis Agreement and the Intergovernmental Panel on
Climate Change’s (IPCC) recommendation to keep global
warming below 1.5°C. This initiative further affirms theGroup’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 2022 andour trajectory towards achieving net zero in the GHG
Emissions Overview section.

Climate Adaptation

emissions. The following are our validated targets.

Status2025 Target

Overall Net-Zero Target – Hang
Lung Properties Limited commits to reachnet-zero greenhouse emissions across thevalue chain by 2050.

On track

Complete technical analysis for climate
adaptation measures for all properties.
2022 KPI

Completed

Conduct technical analysis for climate
adaptation in four properties on Mainland andten properties in Hong Kong.

Near-Term Targets – Hang Lung
Properties Limited commits to reduce
absolute scope 1 and 2 GHG emissions
46.6% by 2030 from a 2019 base year. Hang
Lung Properties Limited also commits to
reduce absolute scope 3 GHG emissions
from purchased goods and services anddownstream leased assets 25% by 2030
from a 2020 base year.
Hang Lung Properties Limited
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37

Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

Climate adaptation means anticipating, preparing for and reacting to the effects of climate change by acting to reducerisks and pursue opportunities. We recognize the need for adaptation planning to manage risks to health, safety, assets
and operations, and to enhanceIntroduction
customer experience.
Following
our studies
on climateWellbeing
adaptationSustainable
planning in the
Sustainability
ClimateResource
Appendix
StrategyManagement to conduct a detailed
Transactions
last two years, we expanded the scope of workand engagedResilience
technical consultants
physicalrisk analysis.
We have developed a robust plan to 2025 to strengthen our resilience and manage the impacts of climate change:

Adaptation Roadmap to 2025

Adaptation Roadmap to 2025
2023 Technical analysis:• 4 properties in mainland China

20
22enhancement works for
2 properties

2022 Technical analysis:

China• Conduct climate

adaptation enhancement
works for 4 properties

2024 Technical analysis:

20
23• 11 properties in Hong Kong
• 5 properties in mainland

Adaptation response:

20
24• Conduct climate adaptation

20
25• 3 properties in mainland China
Adaptation response:• Conduct climate adaptation
enhancement works for 4
properties

V)

This long timeline helps to ensure that our properties will

In 2022, we conducted an in-depth climate hazard

be future-proofed throughout their lifespan.

GHG
Emission assessment
Intensity Reduction
Trajectoryand vulnerability
for flooding,typhoon from 2018 – 2030

Under the scenario SSP5-8.5, the annual maximum

and extreme rain, heat waves and rain-induced

temperature is projected to have an increase of 1.1-1.9

10.07
landslides
for the following properties and projects

under development:

20%

25%

0.06

degree Celsius by mid-century and 3.3-4.5 degreeActual
Reduction

30%• Three properties in mainland China: Plaza 66, Center35%
660.05and Riverside 66;

Celsius by end of century, resulting in increasing Target
Reduction
air-cooling demand. About 38% of our properties

Actual40%
are at medium risk of heat wave and we will be
Targetreviewing the adequacy of our properties' air cooling23.38%• Ten
properties in HongKong: Peak Galleria, Hang
0.04
28.47%

capacity to ensure thermal comfort for our customers

Lung Centre, Kornhill Plaza, Amoy Plaza, Standard

38.28%

CharteredBank Building, Gala Place, Hollywood Plaza,
0.03
Burnside Villa; 9 Wing Hong Street and the Summit;• Three projects under development including Westlake
660.01in Hangzhou, Center 66 Phase Two in Wuxi and
0.00

2023

facilities and measures analysis, about 75% of ourproperties are at low to medium risk of flooding
whereas 81% of our properties are at low to medium

Shouson Hill Road in Hong Kong.

2018recommendations
2019
2020
2021
2022
Following theofthe TCFD

70%

and employees.

From flood modelling and existing flood prevention

0.02

2024

risk of wind-related risks (e.g., windborne debris). For
2025

2026

2027

2028

2029

2030

the remaining properties which have higher exposure

Framework, our climate projections are scenario-based,

to climate-related hazards, there are some measurescovering multiple plausible future scenarios e.g.,already in place and we will continue to improve them

SSP2-4.5 and SSP5-8.5 scenarios. The timeline ofin order to enhance their climate resilience capability.

projections covers various time points including mid-

One of our new sites is close to a slope, and our design

century (2041-2070) and end of century (2071-2100).
1

The landslide analysis was only for properties and development projects in Hong Kong.

38

Hang Lung Properties Limited
Sustainability Report 2022

0.06
0.05
0.04
0.03
0.02
0.01

Technical Analysis

GHG Emissions Intensity (tCO2e/m2)

xceed
the
spacesargingportfolio

0.07

Adaptation response:

GHG Emissions Intensity (tCO2e/m2)

Appendix

0.00

2Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendicesteam will incorporate necessary measures to minimize

High exposure risk is not necessary equivalent to highrisks from the slope.

residual risk. For example, Westlake 66 in Hangzhou

When we work on climate adaptation, we focus on not
only the ambient environment but also how adaptive

is moderately exposed to heat wave in the exposure
assessment, however, as its current design has ahigh buffer for rising temperature as evaluated in ourour properties are. The in-depth climate hazard andvulnerability assessment includes two levels of analyses:
one is a exposure assessment, to assess the climate
exposure level of each property; the other is adaptative
capacity analytics, to evaluate the climate sensitivity andadaptive capacity of each property.

adaptative capacity analysis, the residual risk of heatwave is classified as low. Please refer to the summary
table of current residual risks below, logged on the
results of the two analyses. Also, the current residual
risks are not static in nature; they can be further reduced
when we implement more adaptive actions, as we plan
to do towards 2025.

Summary Table of Residual Climate Risks1
Property Name

Flooding

Heat Wave

Typhoon &Extreme Rain

Landslide

9 Wing Hong Street

Low

MediumHigh

Low

Amoy PlazaHigh

MediumMediumLow

Burnside Villa

Low

Low

MediumMediumMediumMediumMediumLow

Hang Lung Centre

High

Low

MediumLow

Hollywood Plaza

Medium

Low

High

Low

Kornhill Plaza

MediumLow

MediumLow

Peak Galleria

MediumLow

MediumLow

Shouson Hill Road

MediumLow

MediumHigh

Standard Chartered Bank Building

High

Low

High

Low

The Summit

Low

Low

MediumMediumCenter 66 Phase 1

MediumMediumMediumNot ApplicableCenter 66 Phase 2

MediumMediumMediumNot Applicable

Plaza 66

MediumMediumMediumNot Applicable

Riverside 66

High

Low

MediumNot Applicable

Westlake 66

MediumLow

MediumNot Applicable

Hong Kong

Gala Place

Mainland China

1

Some of our properties are working on climate adaptation measures and the risk levels may be revised as the adaptation actions develop further.
Hang Lung Properties Limited
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39

Introduction

Our
Sustainability
Strategy

We are taking action based on scientific insights andengineering and business considerations. Building on ourefforts to formulate and implement climate adaptation
actions for the sites already under review, we will

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Climate Mitigation
GHG Emissions Overview
Scope 1 and 2 Emissions overview

complete technical assessments for all our sites before
2025 (see roadmap on previous page).

Adaptation Measures
Adaptation Measures under Review

Status2025 Target

On track

40% cumulative reduction in GHG intensity(kg CO2e/m2) relative to 2018

We have identified a range of potential adaptation

2022 KPI

measures and are examining their feasibility for potential

Develop a draft portfolio-wide 2025 GHG
reduction action plan by the end of Q2 2022.

adoption. Key examples include:

AppendicesCompleted• Heat wave: add membrane or install shading devices
to façade/glass to reduce solar absorption; apply solarreflective materials to the roof and pavement (e.g.,green roof, solar reflective paint)

In keeping with our 2022 GHG Mitigation Plan (oursecond annual plan), we installed smart energy meters
at all mainland properties and most properties in• Flooding: install flood gate to protect vulnerable places

Hong Kong to closely monitor our building electricity

in the properties (e.g., underground plant room); install

performance. We are therefore able to oversee 10

a digital flood detection and warning system in Plaza

Mainland properties across eight cities and 10 Hong

66, Center 66, Hang Lung Center and SCBB; install

Kong properties, with more than 5,000 energy data

surface flow channel at underground plant room,

points collected and analyzed. Furthermore, we havecarpark or basement areas.

applied an artificial intelligence technology in Center• Typhoon and Extreme Rain: increase the frequency
of inspections of the façade, exterior-mounted
equipment, drainage system during typhoon season;
regularly inspect water leakage blackspots (e.g.,
façade, sealant of slab/vent openings) andconduct appropriate retrofit works if needed; adopt
comprehensive methods to reduce the vulnerability oftrees to extreme wind, such as providing deeper soil,
choosing tree species with deeper root systems andensuring that the root-soil plate is large enough towithstand extreme wind conditions.
• Landslide: conduct a deep slope investigation for

66 Office Tower Two to improve the building’s
energy performance.
With the contribution of Spring City 66’s 100% renewableenergy through a power purchase agreement (PPA), as
well as some external factors (I.e., grid decarbonization,
pandemic impact), in 2022, the Group achieved acumulative 38.28% GHG emissions intensity reduction(market-based2) compared to our 2018 baseline. In
the 38.28% reduction, 3.8% came from Hong Kongproperties and 34.48% was from mainland China
properties. Further details on the factors contributing to
the 38.28% reduction are as follows:

Shouson Hill Road Redevelopment project, including
slope stabilization works, landscape treatment andlandslide warning system etc.

• 16.35% from energy efficiency and onsite
renewable energy,• 11.22% from grid decarbonization and Spring City 66’s
PPA contribution,• 10.66% from GHG reductions associated with heating
demand, and• 0.05% from Scope 1 reductions.

2Market-based method considers contractual arrangements under which the organization procures power from specific sources, such as
renewable energy.

40

Hang Lung Properties Limited
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Appendix

Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

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

20%

sponse:

20
25

25%

0.06
GHG Emissions Intensity (tCO2e/m2)

ate
hancement
operties

30%

35%

0.05

40%

ActualTarget23.38%
28.47%

0.04

2025

70%

38.28%

0.03

2030

ActualReduction
TargetReduction

0.02
0.01
0.00

Constru
2018

2019

2020

2021

2022

2023

2024

Scope 3 Emissions overview
ActualReduction
TargetReduction
ActualTarget2025 Target

2026

2027

2028

2029

60% of c
waste dlandfill fstarting
maximiz2030

The key updates in our Scope 3 inventory calculation are:
Status

1. We adjusted our embodied carbon emissions

On track

allocation to align with SBTi’s requirements. Allconstruction-related materials emissions are in

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 building2022 KPI

2025

Category 1, purchased goods and services.
2. We updated our calculation and accounting
methodology for embodied carbon emissions
according to Life Cycle Assessment (LCA) modelingCompleted

Develop a consistent methodology forcollection of data and accounting of
embodied carbon

analysis. We enhanced our data collection
methodology for all development projects in Hong
Kong and mainland China to calculate emissions
from major building materials including steel, cement,
concrete, glass/curtain wall and other materials on a
yearly basis.

Scope 3 emissions (i.e., indirect emissions that occur

3. We added finance- and investment-related emissions

along the value chain) present significant challenges

and employee commuting emissions within thein the real estate industry, including challenges in theaccounting boundary. We conducted the firstavailability, categorization and accuracy of data. Building

company-wide employee commuting survey withon our first Scope 3 calculation in 2021, the Group

more than 2,600 employees participating.

refined and enhanced our inventory calculation in 2022
to develop a more comprehensive Scope 3 emissions
disclosure based on SBTi and the Greenhouse Gas(“GHG”) Protocol.

Hang Lung Properties Limited
Sustainability Report 2022

41
17Hang Lu
Sustaina

Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

Please find our Scope 3 carbon emissions by typein 2022.

Breakdown of Scope 3 Emissions by Category in 2022

56.8%

Purchased goods & services (Cat 1)

29.1%

Downstream leased assets (Cat 13)

5.92%

Waste generated in operations (Cat 5)

3.73%

Fuel and energy related activities (Cat 3)

3.5%

Investments (Cat 15)

0.5%

Capital goods (Cat 2)

0.34%

Employee commuting (Cat 7)

0.1%

Business travel (Cat 6)

0.01%

End-of-life treatment of sold products (Cat 12)

The key findings for Scope 3 emissions between 2020 –2022 are:1. We identified nine categories of Scope 3 emissions
that are within our reporting scope.
2. Emissions from purchased goods and services(mostly embodied carbon from building materials)
and downstream leased assets (i.e. tenant’s electricity
consumption) remain our two most significant
categories of carbon emissions. Taken together,
they contributed nearly 80% of our total Scope
3 emissions.
3. We reported our project-related embodied carbon
emissions annually (instead of the total emissions
upon project completion). Therefore, our embodied
carbon emissions in the past three years track thestages of our project development cycle – the least
activity in 2020, peak activity in 2021, and in between
in 2022.

42

Hang Lung Properties Limited
Sustainability Report 2022

4. The 100% renewable energy transaction in Spring City
66 led to a substantial reduction in emissions fromour tenants' electricity consumption in 2021. However,since our reporting boundary expanded to include
Heartland 66 in the reporting year, our overall scope
3 (Cat 13 downstream leased assets) emissions
remained steady in 2022.
5. Other Scope 3 emissions increased slightly from 2020
to 2022.

Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Scope 1, 2 and 3 Emissions Overview

Climate Mitigation Initiatives

Our absolute Scope 1, 2 and 3 carbon emissions are

Renewable Energy

Sustainable
Transactions

consolidated and disclosed in the chart below. The

Statusaggregate CO2e emissions for all three scopes were:552,000 tonnes in 2020; 691,000 tonnes in 2021; and2025 Target

615,000 tonnes in 2022. The previous two sections have

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

explained the major changes in our Scope 1, 2 and 3
carbon emissions in the past three years.

Appendices

On track

2022 KPI

CompletedDirect procurement of renewables for at least
one mainland property

Total Carbon Emissions (2020-2022)
700,000

Tonne CO2e

600,000

Building on the success of Spring City 66, Parc 66

500,000

in Jinan became the second Hang Lung property to

400,000

be fully powered by renewable energy through a PPA.

300,000

The transaction was once again completed in a matter

200,000of months, reaffirming that Hang Lung can be bothdisciplined and fast in executing important initiatives.

100,000
0With both PPAs in place, the percentage of our mainland
2020
Scope 1

2021
Scope 2

2022
Scope 3China portfolio landlord electricity consumption provided
by renewable energy is expected to increase from 14%
to roughly 23%. In addition, the renewable electricity in
Spring City 66 and Parc 66 fully covers our tenants’

In 2022, each scope contributed to our overall emissions

electricity needs in those properties.

as follows: Scope 1, 1%; Scope 2, 27%; and Scope 3, 72%.

In addition to our 100% renewable energy procurement
for existing properties in mainland China, ourBreakdown of Carbon Emissions by Scopein 2022development projects in Kunming and Hangzhou also
procured 100% renewable electricity in 2022 and willcontinue to do so in 2023. Please refer to the Project
Environmental Management section for details.

1%

Scope 1

27% Scope 2
72% Scope 3

Hang Lung Properties Limited
Sustainability Report 2022

43

Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

Case Study

Parc 66, Jinan is 100% Powered byRenewable Energy
In December 2022, we announced that Parc 66 would

power, and is expected to reduce the property’s carbon

become the first commercial development in Jinan andemissions by over 35,000 tonnes per year.

Shandong Province to be 100% powered by renewableenergy, effective from January 1, 2023. The achievement
moves us close to achieving our 2025 renewable energy
target, with renewable energy sources now supplying
almost one quarter of our mainland China electricity.

“Tenants and investors are looking for real estate
owners and operators who can take sustainability andoperational excellence to the next level. Procuring 100%
renewable energy for Parc 66 is a significant milestone
towards our 2025 renewable energy target for our

Located in Jinan’s commercial center, Parc 66 is the

Mainland portfolio and reaffirms our commitment tosecond Hang Lung property to be fully powered byreaching net-zero value chain greenhouse gas emissions

renewable energy, following the Group’s procurement ofby 2050. We will continue to look for opportunities to100% renewable energy at its Spring City 66 commercial

replicate our successes in Kunming and Jinan in ourcomplex in Kunming, Yunnan Province in 2021. The

other developments across mainland China,” said Adrielpurchased electricity for Parc 66 will provide 37,000

Chan, Hang Lung Properties Vice Chair and Chair of

MWh of renewable electricity per year from wind

Sustainability Steering Committee.

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Hang Lung Properties Limited
Sustainability Report 2022

Introduction

Our
Sustainability
Strategy

Embodied Carbon

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

CLEANCO2 has mastered a number of technicalStatus2025 Target

On track

achievements leading to patents and completed the first
10,000-tonnes CO2 mineralization curing fly ash brickdemonstration project in the world. In close cooperation
with Zhejiang University, they have jointly undertaken

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 building2022 KPI

ClimateResilience

several national and local research and development
projects related to CCUS technology and jointly built the"Zhejiang University - CLEANCO2 United Laboratory ofCompleted

Develop a plan for reduction of embodied
carbon from bamboo, concrete, rebar,
insulation, glazing and finish materials andthrough integrated design on future projects

CO2 Mineralization". From late 2022 we have started tocollaborate with CLEANCO2. We are together exploring
the feasibility of recycling and adding CO2 mineralization
to concrete waste in order to enhance the circularity ofour development projects and to use low carbon building
materials to reduce embodied carbon.
We also invited embodied carbon experts to provide

With our internal 16 Sustainability Improvements
Checklist established in 2022, our Mainland development
projects make efforts to incorporate low carbon
materials into design and construction, including
concrete with pulverized fuel ash (PFA), recycled steel,steel produced by the electric arc furnace (EAF) route,timber from certified sustainable sources, and bamboo.

training for our employees. The training included
an overview of embodied carbon, practical reduction
measures and an introduction to our standardized
embodied carbon accounting methodology. In 2022, wedelivered 226 hours of embodied carbon training to ourdesign and project management colleagues.

Tenant Electricity

Our development project Westlake 66 in Hangzhou is

Statusexploring the feasibility of using low carbon concrete
bricks to replace normal solid bricks in the secondary

2025 Target

structure in the basement. The embodied carbon

15% reduction in GHG intensity (kg CO2e/m2)
from tenants’ electricity consumption for our
properties in mainland China, relative to 2018

emissions of low carbon concrete bricks are expected
to be 88% lower than (conventional) shale bricks.
We started a two-year collaboration on decarbonization

2022 KPI

including waste concrete recycling with an innovative

Work with a major strategic tenant to pilot
a plan to reduce GHG intensity from thetenant’s electricity consumption

start-up company, CLEANCO2, which uses carbon
dioxide capture, utilization and storage (CCUS)

Ahead
of Schedule

Completedtechnology to produce low carbon concrete, bricks
and associated byproducts such as aggregate forbuilding construction.

In 2022, the Tenant Handbook and Fit-out Guide
for all our Mainland properties have been updatedwith sustainability-related provisions. In addition, Hang
Lung Properties and LVMH have embarked on athree-year innovative sustainability partnership including
plans to achieve significant electricity savings together.
For more details, please refer to the Sustainable
Transactions section.

Hang Lung Properties Limited
Sustainability Report 2022

45

Introduction

Our
Sustainability
Strategy

EV Charging Strategy

On track

Wellbeing

Sustainable
Transactions

Appendicesconduct at least two pilots to expand EV charging
spaces, one in Hong Kong and one on the Mainland.
Through the pilots we will formulate recommendations
for business model options, the ratio of EV charging

Wherever feasible exceed local regulations forthe provision of parking spaces installed withEV charging facilities across our portfolio
2022 KPI

Resource
Management

In 2023, we will improve our EV charging plan andStatus2025 Target

ClimateResilienceparking spaces, and the ratio of types of chargers.
Completed

Study regulatory trends for EVs and develop
a plan to expand EV parking spaces for
Mainland and HK by Q3 2022

In 2022, we studied regulatory trends for EVs anddeveloped a plan to expand EV parking spaces for
our Mainland and Hong Kong properties. A crossdepartment task force has been set up to:
1. define a path towards the 2025 target;
2. review emerging policies, particularly in Shanghai.
The city requires a minimum percentage of charging

Carbon Pricing Analysis

parking spaces, with other Mainland cities expected

Carbon pricing is likely to have significant impacts on

to follow;

the real estate sector over time. In 2021, we completed

3. evaluate the impact to our business including
revenues, costs, incremental electricity demand andassociated emissions, customer experience, andcompetitor differentiation.

our first carbon pricing analysis to 2030. In 2022,
we conducted an enhanced carbon pricing scenario
analysis. We extended our analysis from 2030 to 2050,
and we included more China-specific policies and planssuch as its Emissions Trading Scheme (ETS). The

Here are some highlights of the task force's key findings

updated analysis applied a blended approach. Short-termto date:carbon prices to 2030 were formulated entirely from

• For existing buildings in mainland China, the Shanghai
government has issued a requirement that at least 5%of parking spaces include EV charging facilities withat least 3% parking lots of the whole carpark as fast
chargers, in order to renew carpark operation licenses.
To date Grand Gateway 66 (in Shanghai) and Spring
City 66 (in Kunming) have exceeded the 5% threshold.
• For new buildings in mainland China, 10%-20% ofcarbon policies specific to China. For the period after
2030, these policy-based prices were blended into, andultimately replaced by, carbon prices under Network
for Greening the Financial System (NGFS) scenarios
for China.
The carbon prices across the six NGFS scenarios –Net Zero 2050, Divergent Net Zero, Below 2°C, Delayed
Transition, Nationally Determined Contributions (NDC),

parking spaces are required to be equipped with EV

and Current Policies – were applied to our emissions

charging facilities. Hang Lung has made provision forunder both Business-as-Usual (BAU) and Science-Basedfuture expansion of EV charging facilities in its new

Target (SBT) pathways to derive the expected carbon

projects on the Mainland.

costs in 2030 and 2050. Under the six NGFS scenarios,• In Hong Kong, Peak Galleria, Kornhill Plaza, Gala Place,and Amoy Plaza have installed EV chargers from EV
manufacturers for exclusive use.

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Hang Lung Properties Limited
Sustainability Report 2022

three different integrated assessment models (IAMs)
were considered to assess the variability of the outputs
and reduce the risk of relying on the output of a singularmodel which might produce outlier results.

Introduction

Our
Sustainability
Strategy

The key insights generated from this analysis include:• The potential range of carbon costs to the Group could

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

Next Stepsvary widely depending on the level of ambition of
the climate scenarios and the type of IAM used. For

With regard to physical risks, we will continue toexample, the Divergent Net Zero scenario results in theadvance our climate adaptation strategies analyses,

highest carbon costs to the Group in both 2030 andincluding a deeper dive on property-level adaptation

2050 compared to other NGFS scenarios. Under the

strategy development for selected properties. We have

Divergent Net Zero scenario, our carbon costs range

developed an adaptation roadmap to ensure that all

between HKD 5 billion and HKD 14 billion under BAU

properties will complete a technical analysis of potential

in 2050. In comparison, under a Below 2°C scenario,

hazards and adaptation responses by 2025.

the carbon costs range between HKD 969 millionand HKD 1.78 billion under BAU in 2050. Overall, ourBAU carbon costs across the four most ambitious
NGFS scenarios fall between HKD 63 million and
HKD 1 billion in 2030, and HKD 969 million and HKD
14 billion in 2050.
• The range of costs to 2030 reflects how quickly

With regard to emission reduction, in our next report,
we will share our best understanding of our detailed
pathway towards our SBTi Net-Zero targets. We will also
share our GHG emissions performance and progressagainst the SBTi validated targets.
We will also introduce our integrated Climate Resilience

national policies may be introduced and developed.

Plan 2023-2025 in our next report. The plan will include

Under the most expensive scenario, Divergent Net

mitigation measures for our Scope 1, 2 and 3 emissions.

Zero, costs fall between HKD 100 million and HKD

We will give significant attention in 2023 to our scope

1.02 billion under BAU in 2030. If the pace of policy

3 emissions, and exploring ways to reduce them. It willdevelopment to 2030 is less ambitious in China, thealso include our EV charging plan, further insights andGroup would likely experience lower short-term costs,

plans related to carbon pricing, and our overall climate

but then could see a sharp increase following 2030 in

adaptation plan and schedule.

alignment with the climate scenarios under NGFS.
• If the Group fully achieves its SBTs, it could reduce
its potential carbon costs on average by 47%
compared to BAU in 2030, and by 95% compared
to BAU in 2050. In dollar terms, under Hang Lung’s
SBT pathway, the Group could save between HKD
47 million and HKD 481 million in 2030, and between
HKD 4.8 billion and HKD 13.4 billion in 2050 compared
to BAU.
In summary, our carbon pricing analysis reinforces thecase for Hang Lung’s decarbonization plans in line with
our SBTs. This analysis will inform our internal carbon
pricing strategy going forward. 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.

Hang Lung Properties Limited
Sustainability Report 2022

47

ResourceManagement
Optimize use andmanagement of
natural resources andpromote circularity| Relevant GRI Disclosure |302 (2016), 303 (2018), 304 (2016), 306 (2020)

Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

Resource Management

We share finite resources with our community and planet. Like the restof the world, our consumption behavior has been linear for the past
decades. We recognize the need to pursue a more circular approach to
the design, construction, operation and disassembly of our buildings andour cities. While the transition to a circular built environment and economy
will take time and require collaboration with like-minded stakeholders, weare developing a Resource Management Plan with specific improvement
measures to the end of 2025, as well as initiatives to help prepare us for2030 and beyond. This chapter will discuss various initiatives underway in
how we manage our resources during the project and operation stages,
including how we achieve our annual ESG KPIs though innovative solutions
and partnerships with suppliers.

2022 Performance Highlights

16.4% reduction inelectricity intensity in
2022 as compared
to 2018

15% reduction in water
intensity in 2022 ascompared to 2018

56% waste diversion rate
in 2022

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49

Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

Our Approach
We are committed to accelerating the transition to a circular economy by minimizing resource consumption andmaximizing recycling and circularity. In the operation of our buildings, major areas related to resource management
include energy consumption (to run our air conditioning and other major plants and equipment), and water (to provide
the cooling and sanitary facilities etc. for our customers and tenants) during the operation stage. We generate waste
every day from our daily operations (together with our building occupants) and construction sites (with our contractors).
Introduction

Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendix

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.

90.00

Accelerate the transition to a circular economy by minimizing
resource consumption and maximizing recycling
Electricity Intensity (kWh/m2)

2030 Goal

ActualReduction
TargetReduction
ActualTarget2025 Targets

80.00

70.00

60.00

Construction Waste

Construction Material Use

Operational Water Use

Operational Waste

60% of constructionwaste diverted fromlandfill for new projects
starting in 2022 withmaximized recycling

Demonstrate best efforts tomaximize the use of recycled,reused and bio-basedmaterials in all new projects

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

70% of operational
waste diverted fromlandfill

Energy Management
Electricity is the major type of energy use in our
portfolio which is mainly comprised of retail and officebuildings. Like other commercial buildings in urban
areas, we mainly use electricity to power our heating,ventilation and air conditioning (HVAC) system, lighting,and elevators systems etc. (some of our Mainland
properties also obtain hot water and steam frommunicipal heating supplies, or from gas-fired hot water
boilers in winter). We closely monitor our energy use toensure we minimize any waste. Many of our properties inHong Kong participate in various energy saving schemes
as organized by the Hong Kong government and NGOs.
More details can be found in Appendix 2 – Memberships
and Charters.

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Hang Lung Properties Limited
Sustainability Report 2022

In 2022, the Group’s total energy consumption increasedby 115,586 GJ compared to 2021, mainly due to theaddition of Heartland 66 into the scope. However, ouroverall energy intensity in 2022 shows a declining trend
compared to 2021, with a decrease from 317 MJ/m2
to 306 MJ/m2. The reduction is explained in Climate
Resilience – Scope 1 and 2 Emissions overview.

50.00

Introduction

Our
Sustainability
Strategy

Energy Consumption and Energy Intensity
Trend (2019-2022)

Wellbeing

Sustainable
Transactions

Appendices

we have established a 2025 target and annual ESG KPIs
to closely monitor our electricity use and its reduction.

400

Please find more details in the following section.
350

1,000,000
800,000

320
300

500,000

0

Resource
Management

Since the majority of our energy use is electricity (81%),

2019
2020
2021
2022
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)

250
240

Please find below the energy consumption by energy
type in 2022.

Energy Intensity (MJ/m2)

Energy Consumption (GJ)

1,600,000
1,500,000

ClimateResilience

Electricity Use Data Review
Status2025 Target

On track

18% cumulative reduction in electricity
intensity (kWh/m2) relative to 20182022 KPI

Completed

All properties demonstrate best efforts
towards portfolio-wide 8% kWh/m2 reduction(by the end of 2022, compared to 2018)

In keeping with the local pandemic containment
measures in mainland China, businesses were disrupted
in many cities including Shanghai, Shenyang, Tianjin,

Breakdown of Energy Consumption by Energy
Type in 2022

Dalian and Wuhan. While the COVID-19 outbreakcontributed some reduction in the electricity intensity of
our Mainland properties, our energy saving measures
adopted in mainland China and Hong Kong alsosignificantly contributed to the overall reduction. Suchmeasures included but were not limited to: cooling
towers replacement at Gala Place; Pressure Independent
Control Valves installation at Amoy Plaza, Grand Plaza,
Kornhill Plaza and Hollywood Plaza; replacement ofsplit type A/C unit by central A/C system at Parc 66,
etc. With those efforts implemented, our electricity
intensity dropped 16.35% in 2022 compared to the2018 baseline.

3.4%

Total natural gas (direct energy)

0.1%

Total liquid fuels (direct energy)

81%

Total electricity consumed (indirectenergy)13.2%

Purchased hot water (indirect energy)

2.3%

Purchased steam (indirect energy)

As the world moves beyond the COVID-19 crisis, it
is expected that our electricity intensity reduction willrebound somewhat in 2023. However, we will introduce
more energy-saving measures in our mitigation plan in2023 to help ensure that we will meet our 2025 electricity
intensity reduction target.

Hang Lung Properties Limited
Sustainability Report 2022

51

Introduction
Appendix

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

AppendicesElectricity Intensity Reduction Trajectory for 2018 - 20251
90.00

g

82.23

80.79

79.76

80.00

Electricity Intensity (kWh/m2)

ActualReduction
TargetReduction

3%
8%
75.65
73.40

16%

17%

18%

71.08

70.00

10.7%

68.78

69.07

68.25

2030

ActualElectricity
Intensity
Electricity
Intensity
Target

2025

67.43

16.35%
60.00

Waste

50.00

ional
d from

2018

2019

2020

2021

Energy Saving Initiatives

2022

2023

2024

Energy Data Management System

We leverage technology to improve the energy efficiency

In order to identify potential savings and improveof our properties. We have design plans to use brushlessenergy efficiency, we have to know where and how

direct current (DC) motor fan coil units in multiple

we use energy. In 2021 and 2022 we installed various

projects. We are also piloting an artificial intelligence

sub-meters to monitor the energy consumption oftechnology at our Hong Kong headquarters in the

major building systems and equipment. In addition, weStandard Chartered Bank Building, to drive energy

have established an energy management platform for

efficiency improvements. We are optimistic that this AI

centralized data monitoring, storage, and comparison

technology will help our building to achieve an overof various sites. The platform provides information that

10% electricity consumption reduction in mechanicalmakes our energy objectives and performance visible toventilation and air conditioning. We are also exploring

various levels of our organization, enabling us to plan,other AI options for our other properties.

make decisions and take effective actions to manage our

In new projects under development, such as Westlake

Achieverating g
75th perc

2025

Obtain lhealth a
for all ou
properti

energy usage.

66 in Hangzhou, energy efficiency measures have been

An additional pilot program utilizing artificial intelligence

adopted in the early planning stage, including but notdiagnosis and smart operation reminder functions islimited to: chilled water dynamic balancing control

being carried out at Center 66 Office Tower 2, as a trial

valves; central plant optimization control to optimize

exercise to see how this cutting-edge technology can becentral plant system equipment efficiency; high efficiency

applied in building operations.

Maintainof 1.5 or

motors for fans and pumps with VSD drive; highefficiency boiler; free cooling system and ground source
heat pump system. We will continue to innovate inenergy and electricity management, aiming for an 18%
reduction in electricity intensity by 2025, compared toour 2018 baseline.

1

Includes consumption of purchased renewable and non-renewable electricity.

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Hang Lung Properties Limited
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20

Hang Lu
Sustaina

Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

Retro-Commissioning (RCx)

Passive Radiative Cooling Paint

RCx is an important practice for restoring and even

We adopted cooling paint on the roof of the Gala Placeenhancing efficiency in buildings that may have deviatedlift machine room in 2022. The working principle offrom their original building designs since opening.

cooling paint is based on radiative cooling inspired by

We initiated a retro-commissioning exercise for five

Saharan silver ants whose hair is in the form of amainland properties in 2022, to be completed in 2023.

triangular cylinder resulting in high solar reflectivity to

RCx services are scheduled for another eleven Hongeffectively reflect solar irradiance.

Kong properties in 2023.

In this project, 50 m2 rooftop area of the lift machine

RCx exercises include a thorough analysis androom (test room) had cooling paint applied with aon-site investigation of Heating, Ventilation andprimer and top layer. On one of the testing dates (mid-Air-Conditioning (HVAC), Electrical (EL), Lift andafternoon in June 2022), the surface temperature on the

Escalator (L&E) systems. The RCx findings will inform

paint was dramatically reduced from 62.1°C (compared

operational recommendations and identify energy saving

to areas without cooling paint) to 31.8°C. The energy

opportunities, and lead to subsequent cost payback

consumption variation from June to July for a control

evaluations from the recommended energy savingroom case without cooling paint is +35.65% for fan andretrofits. We will share the findings and lessons learned+62.99% for air conditioner, while the variation for a testfrom RCx exercises in the next report.

room case applied with cooling paint is only +8.89% for

A mandatory energy audit will be carried out in 11

fan and -5.93% for air-conditioner.

properties in Hong Kong in 2023 in accordance with

Based on the above, at least 21,500 kWh in energy

Hong Kong Buildings Energy Efficiency Ordinance (BEEO)

savings can be achieved annually (equivalent to 430

every 10 years. The scope includes a systematic review

kWh/m2, assuming air conditioning equipment operates

of energy consuming equipment/systems in buildings to

3 hours/day) with a payback period of around six

identify energy management opportunities (EMO).

months. Performance starts to degrade by around
2%-3% after the fifth year, which can be mitigatedHigh Efficiency Heat Pumpby applying another thin topcoat. In 2023 we will

In 2022, a heat recovery system was installed at the

study the application of the rooftop cooling paint on

Conrad Hotel located in Forum 66, Shenyang. The

other properties.

system consists of several units of heat pumps which
supply both hot water to the hotel and cooled water toboth the hotel and certain areas of the office tower.
Since the system’s deployment in June 2022, substantial
savings have been achieved: around 100,000 kWh ofelectricity and 25,000 m3 of natural gas saved duringcooling days; and an additional 5,000 m3 of natural gas
saved on heating days. The payback period is expected
to be around four years.

Hang Lung Properties Limited
Sustainability Report 2022

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Introduction

Our
Sustainability
Strategy

Water and Circularity

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendicesour mainland China and Hong Kong portfolios. The
Status2025 Target

On track

understand our water consumption patterns, review
existing water management practices, and identify
potential water-saving opportunities. The Resource

10% reduction in water intensity (m3/m2/year)
relative to 20182022 KPI

study focused on the landlord’s water, enabling us toManagement Plan will prioritize identified water savings
Completed

opportunities supported with pilot studies.

Water Saving Initiatives

Develop a portfolio-wide water reduction planfor the period 2023-2025

Status2025 Target

Drought threatens people’s livelihood globally. By 2050,
droughts may affect over 75% of the world's population.
The Group reviews its exposure to water stress regularly
to monitor the risk of water shortages.

On track

10% reduction in water intensity (m3/m2)
relative to 20182022 KPI

Completed

Conduct at least three (3) water audits
or pilots on Mainland to support major
improvements in water

Water as a resource is essential to human life, so theprice of water has to be kept low. But the low price ofwater often makes it difficult to motivate people to careabout water savings and conservation. Mindful of thischallenge, we are looking for pragmatic ways to tackle

Water Metering

this problem and conserve water resources.

For better water management, most of operating

Water Use Data Review

meters in 2022, to measure the water consumption of

Water Consumption and Water Intensity
Trend (2020-2022)

each sector. The sub-meter categorized sectors cover allproperties on the Mainland have deployed water sub-

1,600
1,400
1,200
1,000
800
600
400
200
0

2020
2021
Hong Kong
Mainland China
Water Intensity (L/m2)

2022

560
520
480
440
400
360
320
280
240
200
160
120
80
40
0

use, fire service system water use, AC system water use,
irrigation water use, etc.
Water Intensity (L/m2)

Water Consumption ('000 m3)

1,800

the major water use purposes, including domestic water

Water Faucets Improvements
We prioritize water saving initiatives that have greater
reduction potential and always begin with those that
require only a quick fix. We look for pragmatic methods
to improve water efficiency and reduce wastage from thesource, reduce emissions and promote circularity.
During 2022, we explored the potential application ofhighly efficient water restrictors. If well matched toexisting water facilities e.g., water faucets and urinals,

Our total water consumption. In Hong Kong, wewater restrictors can help improve water efficiency. The

consumed 469,000 m of water in 2022, 24%

implementation of water restrictors is simple and easy,of our overall water usage. In mainland China,

without the need to replace current water facilities.

3

water consumption decreased in 2022, with a total
consumption of 1,641,000 m3. As support for our2023-2025 Resource Management Plan, including ourwater use, in 2022 we conducted a detailed review ofour water consumption patterns and practices across54

Hang Lung Properties Limited
Sustainability Report 2022

We have organized training at all Mainland properties
on how to match highly efficient water restrictors totheir existing water facilities, to learn the various types
of water streams that highly efficient water restrictors
can provide with reduced water flow without sacrificing

Introduction

Our
Sustainability
Strategyusers’ comfort, and to learn how to identify the different
models of water restrictors to find applicable models in
the market.

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

Waste and Circularity
Around the world, waste generation rates are rising
especially with rapid population growth and urbanization.

In pursuing high standards, we are targeting a

In general, most waste is sent to landfill sites orwater flow rate below 2 L/min, which is 66% lower

incineration instead of being recycled or repurposed.

compared with the first grade (the most efficient grade)

Typical waste generated from our properties includes

water efficiency faucets water flow of the national

municipal waste from operations and tenants, as wellstandard (GB25501-2019).

as construction waste from renovation work. We collect

After the training, several properties identified potential
applications, and have worked on sample testing withplans for implementation in 2023.

Water Recycling Pilot Projectand segregate paper, plastic, glass, metal, aluminum,
stainless steel, clothing, light tubes, batteries, and waste
electrical and electronic equipment (WEEE) from ourgeneral waste stream for recycling. We also collect foodwaste from our tenants for composting at our mainland
China properties and selected Hong Kong properties.

We piloted a water recycling project at Center 66 in
Wuxi. The project included the collection of fire services

Waste Data Review

system discharged water and condensate from the air-

Statusconditioning system to reactivate the existing water
recycling system at the Center 66 mall. The system
has been in operation since late 2021, with 2,769 m3
total water recycled in 2022, more than 1% of the total
annual water consumption of Center 66 (mall and office
towers). Utilizing the facilities of existing water recycling
systems and some free space in the equipment room todeploy a 5 m water tank, the renovation cost remained
32025 Target

On track

70% of operational waste diverted
from landfill2022 KPI

Completed

Develop a portfolio-wide waste reduction planfor the period 2023-2025

low, making a return on investment possible within five
years, even with Wuxi’s exceptionally low water tariff.
Building on this successful water saving renovation
initiative, the Center 66 team continued its explorationof pragmatic water saving opportunities. In 2022, theteam identified similar water recycling opportunities at
its office towers, to recycle the condensate from the
air-conditioning system. The work will be implemented
in 2023.

We collect and monitor our waste and recycling datamonthly among our major properties. In 2022 we
conducted an internal operational waste review at all
operating Mainland properties to assess and streamline
waste handling procedures and improve waste datacollection. We reinforced the process of separating foodwaste from the source for recycling. Also, all operating
Mainland properties are using standardized waste data

Similarly, Grand Gateway 66 has identified watercollection methods to report aligned waste data. Similar

recycling opportunities and has conducted renovations

work will be conducted at Hong Kong properties in 2023.

to reuse its fire service system discharged water at
the mall. The work was completed at the end of 2022
and will be operational from 2023. As this work did
not include deploying an additional water tank, therenovation cost was even lower, and the investment
return is estimated to be within 4 years.

In 2022, we collected 52,000 tonnes of municipal
waste, of which 29,000 tonnes were recycled or sent
to incineration, and the remaining were sent to landfill.
We have started to disclose our municipal 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 UrbanRural Development of PRC in 2021. Taking into accountboth incineration and recycling, our diversion rate inHang Lung Properties Limited
Sustainability Report 2022

55

Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

2022 is 56%, a significant increase compared to the

Smart Bin Sensors

previous years.

Smart bin sensors and management systems have

Appendicesbeen equipped at Peak Galleria to establish real-timemonitoring of litter bin levels and enhance daily waste
48,00045,000100
90

30,00024,00060
50

15,000

30

0

2019
2020
2021
MSW to landfill
MSW to incineration
Recycled Waste
Diversion rate (from landfill)2022

management and efficiency. Alerts are sent once litterbins reach capacity. Cleaning contractors can handle
and dispose of solid waste in a timely manner to avoid

Diversion rate (fromlandfill)

Waste (tonne)

Waste Disposal and Diversion Trend (2019-2022)

propagation of germs from prolonged waste storage.

0

Operational Waste by Treatment Type in 2022

Smart bin sensor installed inside the litter bin

Food Waste Collection for Tenants
We engaged food and beverage (F&B) tenants at Amoy
Plaza and Kornhill Plaza in Hong Kong to collect foodwaste for recycling. Food waste was collected by anappointed service contractor and sent to the Organic

44% MSW to landfill

Waste Treatment Facilities in Siu Ho Wan, where they

40% MSW to incineration

were converted into useful products such as compost
and biogas for renewable energy.

16% Recycled Waste

Multifunctional Copiers Donation and Recycling
The Group’s multifunctional copiers were updated in

Operational Waste Initiatives

2022 to align with our internal print network and better
Status2025 Target

On track

Implement at least five (5) waste reduction
and recycling measures across the portfolio

56

Hang Lung Properties Limited
Sustainability Report 2022

organizations in Hong Kong and mainland China torepurpose old copiers still in working order. Of the 30
copiers replaced, 23 were donated to primary schools

70% of operational waste diverted
from landfill2022 KPI

manage data across all properties. We partnered withor local NGOs, including 19 schools in mainland China
Completed

for the benefit of over 10,500 students and teachers.
The remaining seven were sent to authorized e-waste
handling organizations for recycling.

Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

AppendicesAppreciation letters and photos from receivers of the
donated copiers

We collaborated with Food Angel to place a collection
box in Kornhill Plaza, Hong Kong to collect surplus foodRecycling Promotion
In addition to providing recycling services for our
employees, customers, and tenants, we also support
various environmental and recycling programs tofacilitate recycling initiatives for the wider public. The
following are some examples:in late November 2022. The result is promising: over
100 kg of surplus food were collected from December
2022 to January 2023. Hang Lung is planning with
Food Angel to upgrade the current collection box to asmart collection machine and will expand the service toother locations.

A “Smart Recycling Promotion Vehicle" with the

Get Redressed Clothing Drive

Environmental Protection Department (EPD) was held

In Hong Kong, we took part in the city’s largest clothingon November 4, 2022. Amoy Garden residents were

drive, the Get Redressed Clothing Drive in October,encouraged to experience the latest smart recycling binsorganized by the environmental charity Redress, to raisein return for reward redemption through EPD’s GREEN$

awareness about reducing fashion waste and giving

Electronic Participation Incentive Scheme. The event

unwanted clothes a new life. Staff members werecollected 369.5 kg in recyclable materials.

encouraged to bring clothes and fashion accessories
in clean condition and drop them in boxes located in
the Standard Chartered Bank Building or Gala Place. A
total of 123.2 kg of clothes were collected from ourHong Kong office. Also, in November 2022, a Redress
representative was invited to share clothing recycling
and reuse, as well as circular economy concepts withour colleagues through our Academy 66.

EPD smart recycle bin promotion vehicle parked at Amoy
Garden podium.

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Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

Case Study

Old clothing collection forreuse and recycling campaign
Starting at Heartland 66 in Wuhan in 2021, an old

the source maximizes reuse and recycling value andclothing recycling and reuse program was initiated inpromotes circularity. Old clothing collected as a result

cooperation with Feimayi spearheaded by the Hang Lungof this program will either be resold or prepared for

As One Volunteer Team. Its success burgeoned spin-offs

recycling by the partner organization. The old clothingin 2022, encompassing all 10 of our operating Mainlandcollection pilot program in 2021 and 2022 proved soproperties, achieving a total collection of 5,000 kg of

successful in combining environmental contributions,clothing for recycling.

social impacts and economic returns that Hang Lung is

Old clothing, categorized as fabric in standard recycling

going to make this a permanent initiative.

waste streams, is a low value recycling material.

The used clothing (5,000 kg) collected by Hang

The current domestic recycling practices might mix

Lung was redeemed as 53 sets of school uniforms,

fabric into wet or dirt garbage, which can lower or

donated to Zhe La Primary School in Yu Xi City,

even wipe out its reuse or recycling value. And if

Yunnan Province (云南省玉溪市易门县绿汁镇者拉小学).

fabric is mistakenly mixed into the residual waste, theThe donation event was held on September 19, 2022,

incineration of fabric produces air pollutants like dioxin.

and the uniforms were presented to students by the

The promotion of a separate old clothing stream from

representatives from local Bureau of Civil Affairs.

58

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Introduction

Our
Sustainability
Strategy

Support Reusable Food Packaging in Hong Kong

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Construction Waste Initiatives

Hang Lung is collaborating with a food delivery
company – foodpanda, supported by the Environment

Statusand Conservation Fund and the WWF – to launch a2025 Target

reusable packaging pilot. The program aims to reduce
container collection machines at Standard Chartered

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

Bank Building, Central and Fashion Walk, Causeway

2022 KPI

food packaging waste. Hang Lung located two foodBay. Under the scheme, customers are able to get an
additional foodpanda e-voucher for their next order bydepositing their used food containers at the collection

Appendices

On track

Completed

Pilot with a relevant organization to identify
innovative ways to reduce construction waste
and increase recyclingmachines. Collected food containers are cleaned andreturned to food vendors weekly by workers from social
enterprises. By the end of 2022, over 500 containers

Statuswere returned to the two participating properties.
2025 Target

On track

Demonstrate best efforts to maximize the useof recycled, reused and bio-based materials
on all new projects
2022 KPI

Completed

Examine the technical and economic
feasibility of increasing the use of recycled,reused and/or bio-based materials insupport of Westlake 66 becoming acircularity showcase

As mentioned in the Climate Resilience section, we arepartnering with CLEANCO2 and Zhejiang University's
CLEANCO2 United Laboratory of CO2 Mineralization to
conduct a study at Westlake 66, Hangzhou to explore thefeasibility of recycling and reusing broken concrete using
carbon dioxide mineralization technology. We will sharethe study findings in the next report.

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59

Introduction

Our
Sustainability
Strategy

Biodiversity
Biodiversity – the variety of life including plants andanimals on Earth – is rightly receiving growing attention
as a critical sustainability issue. The Group recognizes
the potential for biodiversity loss in the construction
and operation of our properties as the result ofchanges in land use, invasive species, air, light andwater pollution, greenhouse gas emissions and climatechange. We are stepping up our efforts to promote andClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

We have identified ideas which will inform practices
to implement at Westlake 66, Hangzhou. From theWestlake 66 baseline, we will also work to establish
practical guidance for all projects to follow to improvebiodiversity performance.

Plaza 66 Biodiversity Themed Pop-up Art
In summer 2022, Plaza 66 presented a pop-up art
installation on the exterior wall of the mall createdconserve biodiversity.

by British visual artist, Celyn Bricker, to highlight

In our recently updated Sustainability Policy (in Julybiodiversity protection. The work combines both visible2022), we have for the first time included language

and invisible elements – the UV element is only visible toabout biodiversity to demonstrate our support for thebirds when illuminated at night.

protection of life in the natural environment. In 2022 wetook the initiative to commission a biodiversity feasibility
study at Westlake 66 in Hangzhou, which is currently
under development. The study seeks to understand whata typical urban commercial complex can do during its
lifecycle to practice biodiversity protection and improvebiodiversity performance.

The pop-up art during day time.

60

Hang Lung Properties Limited
Sustainability Report 2022

the problem of bird collisions and the necessity forThis temporary artwork both communicates the bird
collision problem to the public and provides a solution
to prevent it.

Introduction

Our
Sustainability
Strategy

Nature-Based Solutions Webinar
In 2022 August, we held an internal webinar themed

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

Next Steps“Nature-based Solutions for the Built Environment,”
inviting as guest speaker Dr. Yu Kongjian – professor
and founding dean of the College of Architectureand Landscape of Peking University, and founder andprincipal designer of Turenscape. Dr. Yu introduced
the difference between “grey infrastructure” and “green
infrastructure,” and why cities and real estate developers
need to shift from grey to green. Dr. Yu also made thecase for nature-based solutions and green infrastructurein the built environment, including the importance ofworking with nature in designing buildings and cities,
and how existing landscape architecture practices needto evolve for greater resilience and sustainability. He
also shared some notable examples of innovative
and aesthetically pleasing nature-based solutions. The
webinar attracted a total of 343 participants, one of ourbest attended internal webinars.

We have implemented or are now implementing mostof the low-hanging fruit initiatives to improve ourenergy, water and waste management. To bring our
performance to the next level, we need a more thoroughResource Management plan. The plan we are now
developing will focus primarily on how we can reduce
our impacts to the end of 2025, while also being
mindful of our longer-term aspirations and aspirational
towards longer-term possibilities. The plan will highlightareas for improvement and prioritization in how wemanage resources like energy and water, how we
can reduce waste and increase recycling both inoperations and construction together with tenants andsuppliers, and how we can build capacity and formulate
longer-term plans in support of circularity. It will also
include specific ideas and plans to advance circularity
through innovative solutions and partnerships, including
especially with our tenants.

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61

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

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

AppendicesWellbeing

Wellbeing, which includes physical, mental, psychological and social
aspects, is a fundamental sustainability issue. It encompasses a wide
range of considerations, from more objective issues like indoor air quality,
to more subjective ones, like fostering happiness and cultivating humanpotential. At Hang Lung we are committed to ensuring that employees,
customers and communities enjoy an unrivalled and inclusive environmentthat promotes their health and wellbeing. In this chapter, we will shareour dynamic approach to engaging and fostering the wellbeing of ouremployees and the wider community. More information about how we workon wellbeing issues with our customers and suppliers is shared in the
Sustainable Transactions chapter.

2022 Performance Highlights

Launched Hang Lung
Future Women Leaders
Program to mentor
200 female university
students across thenation with partners.

Celebrated the 10th
anniversary of theHang Lung As One
Volunteer Team. In 2022,
over 1,925 volunteers
completed 135
volunteering activities.

Our percentile rank of
employee engagement
survey in the Gallup
Overall Database is at
68th. One of the top
25% companies with thefastest growth in thesecond year of the survey.

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Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

Our Approach
Wellbeing encompasses many aspects and can be measured 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,Sustainability
Introduction
Climateof their
Resource
Wellbeing
Appendix
it is essential for companies of all
kinds to attend
to the wellbeing
employees, andto makeSustainable
positive contributions
StrategyManagement
Transactions
to the wellbeing of their communities. We takean ambitiousResilienceand expansive
approach to fostering wellbeing,
but always

with a focus of ensuring that we provide a safe, healthy, inclusive, and comfortable environment for our employees,
customers, suppliers/contractors and the community.

ActualReduction
TargetReduction

2030 Goal

ActualElectricity
Intensity
Electricity
Intensity
TargetEnsure employees, customers and communities enjoy an
unrivalled environment that promotes their health and wellbeing

2025 Targets

Achieve an employee engagement
rating greater than or equal to the75th percentile

64

2025

Maintain Female-to-Male pay ratioof 1:1

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

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

Obtain WELL Gold certificate orequivalent for at least one newproperty in Hong Kong andmainland China

Deliver priority ESG training
targeted to all departments
and seniority levels

Maintain a Lost Time Injury Rateof 1.5 or below for employees

Maintain zero work-related
fatalities for employees andcontractors

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

Hang Lung Properties Limited
Sustainability Report 2022

2030

Embracrobust d
supplier

50% of t
facilities
financeIntroduction

Our
Sustainability
Strategy

Employee Wellbeing

ClimateResilience

Resource
Management

Gender

As a caring company, employee wellbeing is always aleading concern at Hang Lung. In fact, the expectation
to “care about people” is directly incorporated into our

Locationbiannual departmental and employee appraisal process,
The Group remains committed to fostering employee
wellbeing and engagement through a range of measuresand initiatives.

Employee TypeWellbeing

Sustainable
Transactions

AppendicesFemale

41%

Male

59%

Hong Kong

24%

Mainland76%

Administrative

42%

Operational

50%

Executive

8%

Employee Engagement
Status2025 Target

On track

In 2022, our score in the Gallup Overall Database
increased by +0.25 to 4.31 out of 5 and our percentile
rank is at 68th. We are also one of the top 25% companies

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

with the fastest growth in the second year of the survey.

2022 KPI

Among our key findings, we identified opportunities forCompleted

Implement key employee engagement
measures to strengthen manager-employee
connections, a caring culture, learning anddevelopment, and work-life balance.

supervisors to demonstrate more care and encourage
more development, and we also identified our strengths
in employees finding best friends at work, in balancing
work life and personal life, and in progress on thegoals set. Continuing on last year’s staff engagement
improvement measures, we have put more effort into

Following the completion of our first employee
engagement survey in 2021, each department headcommunicated the company-wide and departmentspecific results to their teams. They then formulated

promoting a culture of care and recognition in 2022.

Talent Attraction and Retention
The Group provides competitive remuneration, withand documented action plans for the two lowest ranking

benefits regularly benchmarked against the market. In

items in their departments, with periodic reporting on the2022, we achieved a key talent retention rate of 90.1%

progress of those actions.
At the corporate level, measures such as strengthening
the connection between managers and employees,

and about 55.7% of our key talent (as identified in ourannual talent review exercise) were promoted or given
opportunities to broaden their horizons in 2022.

equipping our managers for building a caring culture,

We respect each employee’s personal needs and uniqueenhancing provision of learning and development

professional development and promote a healthy work-

opportunities, and promoting work-life balance havelife balance with flexible working hours and work-from-been taken to improve staff engagement levels.

home options. In 2022, Hang Lung Properties as a

In August 2022, the Group conducted our second
comprehensive, third-party employee engagement
survey. The overall participation rate has increased to98.6% in 2022 (2021: 97.4%). The overall participant
breakdown was as follows:group including Headquarters and operating properties
were all recognized by HR Asia as being among theBest Companies to Work For in Asia 2022 at the
HR Asia Awards. These awards are testament to ourcommitment to cultivating talent and creating the best
possible workplace for our staff. In addition, Parc 66 in
Jinan, Riverside 66 in Tianjin and Olympia 66 in Dalian
have been honored with a WeCare™ HR Asia Most Caring
Companies Award 2022 for their excellent performancein creating a culture of empathy and care.

Hang Lung Properties Limited
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65

Introduction

Our
Sustainability
Strategy

Hang Lung Properties also won the “Employer of theYear” and “Learning & Development Award” at the Hong
Kong HR Awards organized by JobsDB HK. The awards
recognize our excellent performance and outstanding

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

Key retention metrics

2020

2021

2022

Voluntary turnover rate

9.8%

14.6%

10.4%

No. of voluntary turnover

441

622

440

training and development strategies to nurture talent.

Employee Health and Safety
Status2025 Target

On track

Maintain a Lost Time Injury Rate of 1.5 or
below for employees
2022 KPI

Completed

Develop a plan to rollout key safety practices
from Service Delivery Health and Safety
Management Committee and elsewhere

Inspiring the Journey to SelfTransformation
Hang Lung places great emphasis on
nurturing multifaceted abilities as we see
talent as key to our success. By providing
our people with opportunities to gain crossdepartmental exposure and to collaborate withcolleagues with different areas of expertise,individual potential can be realized andengagement enhanced.

Endorsed by our SSC in 2021, we launched a grouplevel Health and Safety Policy in 2022. The policy
fosters collaboration, the exchange of best practices
between our projects, offices, and operations, and thesharing of lessons from safety incidents. A Healthand Safety Subcommittee (HSS) has been establishedunder the authority of the SSC to advance the Group’s
health and safety agenda and to exchange bestpractices and lessons learned across all aspects of ourbusiness. Employees are encouraged to share ideas,
safety concerns and observations and other issues withmembers of the HSS.
Our Health and Safety Policy specifies the roles andresponsibilities of the employer and employees inFull-time employees are entitled to benefits such as

maintaining workplace health and safety. A Service

parental leave, life, medical and dental insurance, parking

Delivery Health and Safety Management Committee

permits and various corporate staff discounts. Despite(SDHSMC) meets quarterly, tracks relevant safety KPIs

the difficult economic situation as a result of theand monitors safety issues across our Hong Kong

pandemic, we strived to maintain a stable working

operations. The SDHSMC includes representatives fromenvironment and enhanced staff benefits during thethe Service Delivery Department, Hong Kong Businessyear to meet our employees’ needs. These included an

Operation, Central Purchasing, Human Resources andadditional day of fully paid annual leave called Founder’s

Sustainability. Through its work, we have strengthened

Day Leave for all employees in Hong Kong and mainland

the internal accident reporting workflow, improve theChina (introduced in 2020). In 2022, our voluntary

health and safety training hierarchy and enhanced

turnover rate decreased compared to 2021, despite acontractors’ safety management. Going beyond thechallenging job market. We gain insights into employees’

statutory requirements, we also enhanced ourconcerns through exit interviews, which enable us tooccupational health and safety management system as

identify opportunities for improving employee retention.

part of the property management of our Hong Kong

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Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

portfolio to meet the international standard ISO 45001.

In Hong Kong, we have identified workplace hazards

In Hong Kong, we have implemented an occupational

and prepared a general risk assessment report, which ishealth and safety management system at all the

updated from time to time or as circumstances change.

managed properties, of which around 70% of our

Suitable preventive measures, personal protective

construction floor area has been certified to ISO 45001.

equipment and training are considered to minimize

In mainland China, we have introduced a health andworkplace hazards. For high-risk operations, our OHS

safety management system and relevant training to staff

team and technical team review procedures before tasks

to comply with the newly introduced Work Safety Law.

are carried out.

We are also improving health and safety preventive

Our operation teams (including Hong Kong andmeasures and education across our portfolio. Regularmainland China) conducted more than 250 drills in

health and safety training has been provided to staff to2022 for various identified emergency scenarios. Suchenhance their knowledge and awareness on workplacearrangements help our teams to familiarize themselves

health, hygiene, and safety, for instance, tips on usingwith proper emergency handling procedures to ensure

display screen equipment, healthy diet, case sharing on

the safety of all employees, tenants, contractors

industrial accidents, and safety working procedures onand visitors.

operating temporary gondola for technical staff. In Hong
Kong’s operation tenders, we select contractors with ISO
45001 certification as evidence of their commitment toensuring the health and safety of their direct employees.
Regular meetings are held to assess and review thehealth and safety performance of our contractors.
Selected colleagues attend a Safety and HealthSupervisor course at the Occupational Safety and HealthCouncil in Hong Kong. We define safety responsibilities
for various staff levels. All employees should protect
themselves from safety hazards by immediately

We collect health and safety feedback from employees
via an online form on a monthly basis. The form isrestricted to designated personnel and employees canreport any observations and share ideas for enhancing
our health and safety performance.
Among our 2025 targets, we aim to maintain a LTIRof 1.5 or below for employees and zero work-related
fatalities for employees and contractors.

Employee Wellness

reporting unsafe acts, unsafe conditions, unsafe
machinery, and defective safety equipment, gears, andpersonal protective equipment to their supervisors.

Status2025 Target

On track

mechanism and Crisis Management Manual in place toObtain local or international health andwellness certification for all our existing
Mainland properties

address incidents of various severity levels. In case of2022 KPIThe Group has an incident and accident reporting

work-related accidents, we investigate the incident andimplement corrective actions if necessary. As part ofthe occupational health and safety (OHS) management
system, we have adopted a plan-do-check-act approach

Completed

Develop a health and wellness
program including guidance and activities
for employees

to manage health and safety in the Group. We first
identify and prioritize safety risks, and conduct regularinspections and drills to validate the effectiveness of
our procedures. To strive for continual improvement,
the Group reviews its management procedures fromtime to time. The results are regularly reported to
top management.

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Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

AppendicesWe are committed to promoting a healthy culture that

We established a Wellness@HL Program in 2022, which

fosters employee wellness. The Group began offering

includes four major wellness elements to support ourmore flexibility in 2021, empowering colleagues to makestaff wellbeing in a holistic manner:choices to enhance personal wellness according toindividual needs. Under one option, eligible employees
may receive a free voluntary medical examination at
one of the medical institutions designated by the Group.
Under the other, they may participate in our Wellness
Allowance Program, which reimburses employees fortheir spending on physical or mental wellness activitiesof their choice in that year.
We support our employees in continuing breastfeeding
after returning from their maternity leave. As a familyfriendly employer, we provide lactation rooms in all
our workplaces for breastfeeding staff. A hotline withprofessional counselling has also been set up to ensurethat all staff and their families can seek support toresolve struggles such as work-related anxiety, hardship,
relationship pressure and more, if needed.
To strengthen the connection between managers• Physical Wellness – Manage health and safety in aproactive way• Mental Wellness – Enhance wellbeing of mind
and emotion• Social Wellness – Foster social networks
and engagement• Environmental Wellness – Support environmentally
sustainable habits and leadership
Corresponding wellness tips, talks and activities havebeen provided to help develop a healthy lifestyle,including online sessions advising “Fun Games at Home”
for employees’ children, online yoga classes, an emotion
regulation webinar, a “Long COVID” recovery workshop,
a healthy diet week, a seminar on alleviating pain with
Chinese medicine, a Christmas Fun Day, and the Hang
Lung Stepathon Challenge.

and employees, we established a Wellness Fund tofoster team building activities among departments. We
also offered “Cheer Up Day” in 2022 to encourage
departments to organize half-day off-site or outdoor
activities. We also arrange drinks or breakfast sessions
with management to foster communication between
management and employees.

Hang Lung Stepathon Challenge
In October, the Hang Lung Stepathon Challenge,
was presented to encourage staff to walk morewhenever, wherever, and however they like, andto lead a healthier lifestyle by staying active inthe hustle and bustle of everyday life.
At the Christmas Fun Day 2022, many staff brought along theirchildren to spend quality time together with their loved ones
during the festive season.

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Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

AppendicesWe believe that our people are integral to our success

ESG-linked Compensationand employee wellbeing is a critical foundation ofWithin the Group’s holistic approach to compensation,

our sustainable growth. As part of our efforts to

ESG plays a very important role. ESG KPIs are directly

promote employee wellbeing and development, ourincorporated into our annual appraisal process foroffice rejuvenation project in Shanghai was completed indepartments and individual employees (please see

2022, and it provides additional facilities that enhance

Appendix 3 for our Strategic ESG KPIs for 2023), setting

employee wellness, such as fit bikes, greenery, andthe stage for biannual performance reviews, including

collaboration spaces. In 2023, we will commence thefor senior management and the CEO. ESG performance

rejuvenation of our corporate offices in Hong Kong.

is also an important factor in the discretionary bonuses

In addition to incorporating wellness elements into

granted at the end of each year at all levels, including

the design, we are also considering the health andthe CEO level. Our CEO reports to the Boards biannuallyenvironmental impacts of building materials with aon the KPIs for which he is accountable. The CEO ispreference for those materials in line with GIGA's

accountable for all of the KPIs of his direct reports,RESET® Materials standard. RESET® Materials is a

including the annual Strategic ESG KPIs mandated todata-driven standard for evaluating the health, safety,

various departments by the SSC.

and ecological performance of building materials andproducts in projects.

Motivating and Rewarding Performance
Hang Lung’s total compensation approach encompasses
salary, incentives, benefits, career development, andwork-life wellbeing. Among our incentives, share options
have also been granted to eligible executives periodically

Employee Recognition
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.

over the past several years to recognize their loyalty,

The winners of Gold, Silver, Bronze, and Special

performance, and contribution, and so that they can

Mention(s) are selected on a fifty-fifty weighting ofshare in the Group’s success.

votes between the award selection committee and all

Under the Group’s performance appraisal process, eachdepartment and staff member must formulate KPIs

staff. As such, it represents meaningful recognition fromcolleagues. In 2022, teams received awards as follows:

approved by management. Each department and staff• Gold: Real Estate & Climate Forum with LVMH

member must also embed the Group’s Strategic ESG• Silver: Working together to safeguard Shanghai

KPIs into their own KPIs. These KPIs are defined
against the Group’s core strategies (“what to achieve”).
In mid-year and year-end performance reviews, staff areevaluated not only by whether they achieved their statedobjectives, but also by their behaviors in doing so (“howto achieve”).

against COVID-19• Bronze: Procurement process & tenancy-related
workflow improvement and refinement• Special Mention: Pixar fluffy festival
Christmas campaign

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Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

Emerald AwardLong Service Award

The Emerald Award, held annually since 2014,

We are fortunate to have staff whose many years ofrecognizes staff members delivering exceptional

dedication, commitment and loyalty to the Group are

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

pride in their jobs and shows staff that their work

Award Presentation Ceremony is our way of honoring

is valued and appreciated by management andemployees for their many years of service and aother colleagues. An assessment form encourages

reminder of how they have helped make Hang Lung what

nominations based on several criteria: initiative,

it is today. In 2022, 88 staff members serving in theaccountability, problem-handling, creativity, uniqueness,

Group for 10, 15, 20, 25, 30, 35 and 40 years received theand “going the extra mile.”Long Service Award.

A 30-year Journey with Hang Lung,
Living “Customer Centricity” by Heart

Enriching Lives throughExcellent Service
We hosted the 2022 Emerald Award
presentation ceremony, honoring frontline staff
members for exemplifying the Hang Lung
service philosophy of customer-centricity, and
the We Do It Well motto through theprovision of exceptional customer service. Two
Emerald Award-winning cases were honored
at the ceremony, involving guest services andoperational hygiene personnel from Kornhill
Apartments in Hong Kong, and Riverside 66
in Tianjin.

Having joined the Group in 1990, Cora Yiu,
Deputy General Manager – Portfolio Support(Service Delivery), is responsible for property
management of our diverse portfolios. One of
the first employees to take an active role inour expansion into mainland China, Cora laida solid foundation in property managementfor our Mainland portfolios by introducing andsharing a set of sound management practices
from her experience in Hong Kong to our
Mainland colleagues.

Staff Appreciation Day
We believe that when employees feel happy at work,
they are more engaged, productive, and successful. We
therefore encourage and foster a fun and appreciative
work environment. To express our sincere gratitude for
employees’ hard work and dedication, our management
team visits various portfolios to present gifts toemployees on Staff Appreciation Day.

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Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

Learning and Development
Status2025 Target

On track

Deliver priority ESG training targeted to all
departments and seniority levels
2022 KPI

Completed

Develop and deliver priority ESG training
to D&D, PMD, SD and CP on major
sustainability priorities

Celebrating Staff Appreciation Day
with Thank You Gifts
Every year the Group holds “Staff Appreciation
Day” to give recognition and show gratitude to
our incredible colleagues. To express sincere
appreciation and gratitude for employees’ hard
work and dedication, particularly amid thechallenging operating environment over the past
year, our management team visited colleagues
at their places of work across Hong Kong andmainland China.

In 2022, building on a structured framework forlearning and development, the Hang Lung Academy(Academy 66) deployed a wide range of courses
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
changes, sustain a high level of competency, and excel in
their personal and professional development. Altogether,
we have delivered 101,824 hours of training with anaverage of 24 hours per employee, which is equivalent
to around 3 days, representing an 7.6% increase ascompared to 2021.

Sustainability CharterTo build a culture of sustainability within the Group,

Annual Employee Training Hours, 2020 - 2022
105,000

we launched an internal sustainability communication
campaign in 2022 under the theme of “Doing Well

90,000for the World.” We introduced a sustainability charter
Lung’s sustainability commitments, and over 90%
of employees in Hong Kong and mainland China
pledged their support. This initiative instills a sense ofshared ownership of the Group’s sustainability agenda.
Starting in 2022, we also began publishing a regularsustainability newsletter to facilitate an understanding
about sustainability among our staff.

75,000Training Hours

that invites employees to make a pledge to Hang

60,00045,00030,00015,0000

2020
Hong Kong

2021
Mainland China

2022

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Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

Academy 66
Creating a High Performing and Sustainable Workforce through Learning & Development
Leadership / Management

Personal Effectiveness

Functional• High Potential Development
Program (LDP)• Soft Skillset andMindset such as
Negotiation, Presentation& Storytelling, Influencing,Communication, etc.

• Emerald
Service Program• Young Talent Program - MT
& Intern• Management Development
Series (MDS) for managers• Supervisory Development
Program (SDP)
for supervisors• Language andComputer Skills• Professional
Development• Functional Academy
e.g. Office Leasing,
Retail Leasing

Company andMarket Knowledge• Orientation• Compliance & Legal• Health and Safety• Business Knowledge
e.g. INSIGHT• ESG Training• Department
Specific Training

Highlights of specific programs under the four pillars in

can develop leadership competencies through close

addressing employee needs include:communication with senior management.

Leadership / Management

In 2022, 15 young talents joined the Program.

Leadership Development Program – The Leadership
Development Program (LDP) is an acceleration program
aimed at building up a sustainable talent pipeline in Hang
Lung. It enables our key talents to synchronize their longterm development and growth with the Group. It also
strengthens the bond between talented employees andthe organization.
In the first half of 2022, 26 key talents who commenced
the program last year graduated as the first cohort of the
LDP for Senior Managers (LDP-SM), which focused on
the theme of customer centricity and boundary spanning
leadership. In the second half of 2022, the first cohort of
LDP for 26 Executive Leaders (LDP-EL) and the second
cohort for 20 Senior Managers (LDP-SM) started theirleadership development journey. Each participant must
dedicate at least 80 hours to complete the program.

Management Development Series – To ensure ourpeople leaders have the management capabilities toinspire and lead the team to execute our strategies, weManagement Trainee Program – The Hang Lung

have developed a “Management Development Series” toManagement Trainee Program is a talent programprovide them with a platform to strengthen leadershipdesigned to groom talented graduates to be the futuremuscles as well as to share experiences and bestleaders of Hang Lung.

practices. The series includes several modules of people

Through an 18-month immersive rotational experience,
our management trainees gain a thoroughunderstanding of our industry, company culture, corebusiness and the operations of various departments.
They also shadow our leaders, during which they72

Hang Lung Properties Limited
Sustainability Report 2022

skills and critical managerial skills conducted throughinteractive sessions, self-paced and peer learning. Since
2022, the following modules have been launched formore than 300 managers at Senior Manager to General
Manager level:

Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices• Engaging and Motivating Employees• Developmental Coaching• Effective Hiring and Onboarding• Inclusive Management Practices
In 2023, we will introduce new topics to our people
leaders and continue to support them in building an
engaged workforce where their team members feel
motivated and empowered to perform at their best.
We will also extend some modules to Manager Level
leaders to build up their skills to become better leaders
and to motivate our employees for greater engagement“Digital Solutions to Support China’s Journey to Net-Zero”
by Mr. Ma Jun, Founding Director, Institute of Public &Environmental Affairs

and accomplishments.

“Creating Sustainable Places Through Indoor/Outdoor Design”
by Mr. Michael Ellis, Co-founder and Principal, 5+design

Hang Lung Management Conference – Our annual Hang

Personal Effectiveness

Lung Management Conference has provided a greatSoft Skills Program – To increase employees’

platform for our management team to assemble andinteract with industry experts. In 2022, with the theme“Adapting to Do It Well,” we aimed to strengthen ouradaptive management by adjusting to the new normal
under the guidance of our Vision, Mission and Values.
Important topics were discussed during the conference
including “Creating Sustainable Places Through Indoor/

confidence in interacting with others, enhance teamwork
and reinforce our core behaviors, we have commenced
development of a “Personal Effectiveness Series”
encompassing different soft skills such as Growth
Mindset, Effective Communication, Storytelling &Presentation, and Influencing Skills.

Outdoor Design,” by Mr. Michael Ellis, “Digital Solutions

To allow employees to own their learning, we encourage

to Support China’s Journey to Net-Zero,” by Mr. Mathem to discuss their development goals with theirJun, and “The Challenge from Luxury Brands: How canmanagers and identify relevant area(s) for upskilling. We

you create more traffic than the brands alone?” by Mr.

also encourage managers to nominate employees to join

Jean Revis. The sharing generated many inspiring ideas

the course that most benefits their growth.

for us to build resilience to support our sustainablebusiness growth.

Design Thinking Workshop – We collaborated withHKUST Business School to customize a Design Thinking
workshop for 40 managers. The program aimed to equipthese managers with a conceptual understanding of
Design Thinking as well as the practical skills to develop
or enhance the products/services/processes that enrichcustomer experience.
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Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

Functional

In 2022, we developed a curriculum for the Office

Customer Service Program and Recognition – We

Leasing and Retail Leasing Departments to enable thecontinue our customer service program for all

acquisition of work-related skills and knowledge. Various

frontline employees to ensure high standards andmodules (basic, intermediate and advanced) have beencustomer satisfaction. We recognize, by participating

designed to meet the needs of different groups ofin external awards and benchmarking with industry

employees from Officer to General Manager level.

leaders, our employees who have gone the extra
mile to deliver exceptional services. In 2022, theGroup won the Customer Relationship Excellence Employee Engagement Program of the Year (Property
Management) by Asia Pacific Customer Service
Consortium (APCSC) as well as the Service Talent Award
Outstanding Flagship Service Brand–Peak Galleria by theHong Kong Retail Management Association (HKRMA).
Training about Dementia – In cooperation with the Hong
Kong Young Women's Christian Association (YWCA),
to provide support for people with dementia and tobuild a more inclusive society, we organized a seriesof training workshops throughout the year to promote

Using the Retail Leasing Department as an illustration,
the “Retail Leasing Series” consists of over 10 modules
developed and conducted predominantly by internal
subject matter experts, with modules running over two
years and covering over 170 team members.
ESG-specific training – We identified and prioritized
ESG training for five departments in 2022 with atarget to deliver 450 learning hours. We arranged
specialized workshops in 2022 on embodied carbon,
supplier registration, water management, and naturebased solutions, among others, totaling 672 learning
hours, exceeding our target by 49%.

the concept of being “dementia friendly” and to enhanceSponsorship for individual learning – Our employees

our employees' understanding of dementia. Throughare empowered to take charge of their development

workshops and discussion of case studies, aroundand personalize their learning journey. Our Training

140 of our frontline employees had the opportunity

Sponsorship Policy is in place to subsidize the cost

to practice and master the skills needed to interactof continual learning opportunities for external training

with people living with dementia, as they build theirprograms, professional examinations, and memberships

confidence to offer timely assistance to those in needin professional bodies.

in real life.

In 2022, we granted a total of HK$981,666 intraining sponsorship, representing a 43.8% year-onyear increase.
LinkedIn Learning – Employees’ learning preferences
are evolving and it is imperative to provide them withlearning resources that are flexible and autonomous,allowing them to learn anywhere, anytime.
In 2022, we partnered with LinkedIn to introduce a new
way of learning that enables our employees to accessits huge on-demand library of videos covering the latest
business, technology and creative skills. The LinkedIn
Learning platform also provides advanced functionalities

Leasing Academy – Developing functional skills forsuch as personalized course recommendations tomajor departments is a focus area that can improve

increase motivation and engagement. 57 employees

employees’ day-to-day job performance and productivity.

have subscribed to this platform with company

We are also keen to nurture our homegrown talents bysponsorship, and completed 250 hours of viewing fromoffering them functional training opportunities.

August to December 2022.

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Introduction

Our
Sustainability
Strategy

Company and Market Knowledge

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

Launching of Learning Management System

INSIGHT Business Knowledge Sharing Session – In

To further advance our learning strategy, the Group

2022, INSIGHT (our internal webinar series) continued

has invested in a Learning Management System (LMS)

to invite internal and external speakers to share businessintegrated with our Human Resources Information

knowledge or market practices with our colleagues on

System (HRIS). In August 2022, we successfully

a wide range of topics from “Introduction to Financelaunched the Learning Module to provide a one stopfor Non-Finance Employees” and “Cyber Security Review

platform that allows employees to access learning& Transformation” to “Heritage Conservation in Hang

resources, enroll, view courses and track learning

Lung.” These monthly webinars not only build knowledge

records. Our people leaders can make use of thisbut facilitate mutual understanding and appreciation

platform to support their teams in acquiring the rightacross teams.

skills by assigning them courses and keeping track of

Sustainability Learning – We aim to become one of
the most sustainable real estate companies. To bringsustainability to life, we have arranged workshops totheir development. The LMS mobile version supports
employee learning on the-go and helps them manage
their progress more freely.

help our employees better understand how sustainability

At the enterprise level, the system facilitates easier

relates to us, and the impacts of our actions on theadministration of course registration, content updates

environment. Webinars like “Successful Journey to 100%

as well as data analysis and reporting. Overall, the LMS

Renewable Energy in Spring City” and “Redress to

has become a key enabler to improve effectiveness andRaise Awareness on the Clothing Waste Issue” aim to

efficiency, to drive our learning culture, and provide an

foster a sustainable workplace — highlighting initiatives

integrated user experience.

worth replicating, improving employee engagement andcreating a sense of community and engagement within
and beyond the organization.

Training Hours by Category, 2022

In addition, we are also aiming to build an open
and increasingly inclusive workplace. This year wepartnered with several NGOs to host a variety of sharing
sessions to educate our employees on best practices
for interacting with persons with disabilities and special
needs. Workshops included “Disability Inclusion at Work– Communication Etiquette,” by CareER, and one on how
guide dogs are trained and how to interact with visually
impaired people, facilitated by The Hong Kong Seeing
Eye Dog Service.

49% Functional
50,299 hours
and Market Knowledge
36% Company
36,164 hours/ Management
10% Leadership
9,856 hours

5%

Personal Effectiveness
5,505 hours“Disability Inclusion at Work – Communication Etiquette,”
by CareER

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Our
Sustainability
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Diversity and Inclusion

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

The Group is also working to create opportunities for
Status2025 Target

ClimateResilience

On track

people from diverse backgrounds in mainland China andHong Kong. In 2022, we strengthened the principles andguidelines for our recruitment process in both Hong
Kong and mainland China (following a separate Strategic

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

ESG KPI on this topic as summarized above) to ensure2022 KPI

Completedthe gender representation of the shortlisted candidates.
We partnered with Social Ventures Hong Kong, a venture

Conduct D&I training and workshops andstrengthen anti-discrimination policies andprocedures (e.g., recruitment)

philanthropy organization, to recruit three mothers forpart-time work in 2022. The program aims to encourage
mothers to seek and take actions to pursue their goals.

In keeping with our Equal Employment Opportunities
Policy and our commitment to diversity and inclusion as

Percentage of Executive Staff by Gender in 2022

articulated in our Sustainability Policy, we are pursuinga range of initiatives to ensure that candidates andemployees are treated fairly, and that Hang Lung attracts,
nurtures and retains talent from all backgrounds. We
are committed to improving the female-to-male ratioof executive employees. Between 2021 and 2022, ourexecutive staff ratio of 38.4% female to 61.6% maleincreased to 39.5% and 60.5% respectively following a
grading alignment between mainland China and HongKong. We have set a 2025 target to maintain a 1:1
female-to-male pay ratio, and our overal pay ratio for2022 was 1:0.978. Lastly, we completed a 2022 Strategic
ESG KPI to conduct Diversity and Inclusion training andstrengthen anti-discrimination practices.

Status2025 Target

On track

Conduct an audit of our corporate
practices (e.g., sourcing candidates,interviewing, hiring, promotion, mentoring,collaboration with stakeholders, etc.) andformulate recommendations

Male

39.5%

FemaleWe also continued to partner with CareER, a charitableorganization that provides career development support
for higher-educated persons with disabilities and special
education needs in Hong Kong, to ensure that we

Conduct an audit of all our properties andcorporate practices on how to enhancewellbeing and opportunities for persons
with disabilities
2022 KPI

60.5%

will also consider people with disabilities or special
needs when recruiting for recent graduates. We arealso actively researching opportunities to hire more
Completedpeople with disabilities or special needs for our Mainland
operations as well. In 2022, we joined the corporate
membership network of CareER, and recruited fourinterns with special needs for our summer internshipprogram to provide them with opportunities acrossvarious functions and projects. We were also one of the
inclusive employers participating in CareER’s Inclusive
Recruitment Fair 2022.

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Introduction

Our
Sustainability
Strategy

To assess our progress towards creating a disability-

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

Percentage of Staff by Age in 2022

inclusive workplace, in 2022 we participated in
the CareER Disability Inclusion Index (DII), a
comprehensive localized assessment tool that measures
our corporate strategies and practices in the eightareas of: organizational policies and structure; civic andcommunity engagement; products and services; supply
chain and procurement; recruitment; staff engagement
and retention; accommodation and adjustment, andaccessibility. The evaluation process facilitates theformulation of plans to promote a more open,
inclusive, and barrier-free working environment within
the organization, as well as learning from inclusive best

12.4%

Under 30

found that we do relatively well in employee engagement

71.9%

30-50

and retention, and have room to improve in areas

15.7%

Over 50

practices and identifying areas for improvement. We

such as supply chain and procurement. Following the2022 assessment, we will develop and implement in
2023 a disability inclusion action plan based on theassessment results.
In 2022, we also shared our diversity, equity andinclusion practices and metrics in the ULI Global Real
Estate DEI Survey 2022. The survey results allow us tobenchmark ourselves against peers in the commercial
real estate industry to identify ways to operate more
effectively and inclusively.

Community Wellbeing
Community Investment
The Group is committed to enriching lives andpromoting diversity and inclusion in our communities.
Despite the pandemic, 1,925 volunteers completed
135 volunteer activities, contributing 18,597 service
hours and benefitting 60,631 people in Hong Kongand mainland China during 2022. Of the 60,631

We recognize that we can do more to support people

beneficiaries, 68% were among the most severelywith disabilities and aim to audit all our properties andaffected groups in our community during the pandemic.

corporate practices – in other words, both our hard andIn addition, the Group donated HK$62 million to various

soft infrastructure – to enhance inclusive opportunities

charitable causes and provided 19 venue sponsorships

by 2025.

at our properties to non-profit organizations for nominal

The Group also values age diversity. We are eager torental fees.

attract 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 2022, we
continued to provide suitable opportunities to both
external and internal silver hair talent – persons aged
60 and above – to continue with their career after normal
retirement age.

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Our
Sustainability
Strategy

Breakdown of Volunteer Hours by Region

Resource
Management

Wellbeing

Sustainable
Transactions

Appendicesprotection, with more than 11,400 volunteers and over
135,000 accumulated service hours.

16,00012,000Volunteer Hours

ClimateResilience

11,765
10,146
8,506

8,000

4,000

6,832
4,299

0

2020
Hong Kong

4,432

2021
Mainland China

2022

Number of Volunteering Activities by Focus Area
Our employees generously commit time and effort totheir communities. Every year, the Group recognizes
those volunteers with the highest service hours in eachof our Hong Kong and mainland China projects.

57% Diversity and Inclusion
8%

Youth Development and Education

13% Environmental Protection
2%

Elderly Services

20% Others

Hang Lung As One Volunteer Team
Established in Hong Kong in 2012, the Hang Lung As
One Volunteer Team actively cooperates with various
community groups and charitable organizations to
support wellbeing in society. Over the past decade,the Hang Lung As One Volunteer Team has set up
12 teams across Hong Kong and 11 projects in ninecities in mainland China. The teams take part in arange of social service activities to promote diversity
and inclusion, the health and wellbeing of senior citizens,
youth education and development, and environmental

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Hang Lung Top 10 Volunteers
To express our heartfelt appreciation forour volunteers’ selfless devotion, our local
Hang Lung As One Volunteer Teams holdan Outstanding Volunteer Awards Presentation
Ceremony every year to present certificates ofappreciation to the awarded volunteers.

Introduction

Our
Sustainability
Strategy

Hang Lung Nationwide Volunteer Day

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Key Community Investment Programs in 2022

On September 17, Hang Lung held its annual nationwide
volunteer day in Hong Kong and nine cities acrossmainland China and celebrated the 10th anniversary of
the Hang Lung As One Volunteer Team. Inspired by the

Status2025 Target

On track

theme, “Diversity and Inclusion – Caring for the Elderly,”Work with youth on wellbeing community
initiatives at all properties by 2025

the campaign combined the efforts of over 1,2002022 KPI

corporate volunteers to reach out to nearly 5,500 seniorcitizens in activities carefully curated to demonstrateheartfelt care and concern for building an inclusive andcompassionate community.

AppendicesCompleted

Work with youth to organize at least one
high profile community wellbeing event withmeasurable impacts on the community

Hang Lung Future Women Leaders Program –Sustainable business growth goes hand in hand withsustainable growth in the communities we serve. In
2022, we stepped up our youth development efforts
to help unleash their potential and build more diverse
and inclusive communities. The Hang Lung Future
Women Leaders Program aims to mobilize various
forces in society to promote talented young women’sdevelopment and create a compelling psychological andphysical space that values diversity and inclusiveness.
The Program has actively engaged the government,
industry, and society in response to China’s national
goals to support the diverse development of women.
Population aging is a global phenomenon. There ispressing need to tackle social issues and challenges
faced by the elderly with dementia or living alone. This
year's Hang Lung nationwide volunteer day focused on
this area of need with a desire to raise awareness andpromote an inclusive caring culture in society. Together

In September 2022, the inaugural edition of our Hang
Lung Future Women Leaders Program launched in Hong
Kong and mainland China in collaboration with the Hong
Kong Federation of Youth Groups Leadership Instituteand the Xuhui and Jing’an District Women’s Federationin Shanghai.

with local governments, tenants and NGOs, the Hang
Lung As One Volunteer Teams from Hong Kong and nine
Mainland cities curated activities and provided care andsupport where it was most needed. Activities included
visiting elderly centers and residential communities,
distributing handmade gift packs, providing haircutting
services, helping with house cleaning, and playing
interactive games to enrich the lives of elderly.

The Hang Lung Future Women Leaders Program aims
to provide mentorship, leadership training and internshipHang Lung Properties Limited
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Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

opportunities for female university students to enhancetheir potential and strengths, and to facilitate diversified
development. The first phase of this nationwide program
shortlisted 200 female university students from diverse
backgrounds and invited 43 elite women from various
fields as their mentors. Among the 200 female students,
75% of them were the first among three generationsin their families to attend university. Participants withoutstanding performance will be offered internshipopportunities by Hang Lung or program mentors.

Hang Lung Mathematics Awards – The Hang Lung
Mathematics Awards (HLMA) is a biennial mathematics
research competition for secondary school students inHong Kong, encouraging students to realize their creative
potential in mathematics and sciences, and stimulating
their passion for intellectual discovery. Since its inception
in 2004, HLMA has welcomed the participation of over
2,400 students, and made a profound impact in nurturing
Hang Lung X HKYWCA "Love·No·Limit" Dementia
Friendly Program – Hang Lung is devoted to building adiverse and inclusive community via various community
investment projects. The three-year “Hang Lung X
HKYWCA ‘Love·No·Limit’ Dementia Friendly Program”
aims to provide support to dementia patients andtheir carers, improve the abilities of elderly dementia
patients and lighten the pressure on carers. Since its
launch, the Program has benefited more than 1,500
dementia patients and their carers with Hang Lung
volunteers putting in more than 830 service hours. Hang
Lung and the Hong Kong Young Women's Christian
Association (“HKYWCA”) jointly organized the second
Community Inclusion Day at Amoy Plaza in November
2022. At the event, free brain health consultations andcognitive testing services were offered to close to 100
individuals with the aim of promoting early detectionof dementia symptoms. Over 7,600 members of thecommunity along with dementia patients and theircarers participated in the two-day event.

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a cadre of young mathematics and research talentsfor Hong Kong. Among the earlier winners, many havecompleted their studies in top universities around theworld and are now working in various sectors, such as
academia and other professions, and making meaningful
contributions to society. Hang Lung hosted a HLMA
Winners Gala in 2022. One of the highlights of theevening was a panel discussion that explored howmathematics can help create a more sustainable wayof life for humanity and the planet.

Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

COVID-19 Support

Interview Series with HLMA Winners– Mathematics Unlocks Infinite
Possibilities for the Future
Mathematics is captivating, not only becauseof the satisfaction derived from conducting
research, but also because it facilitates the
exploration of myriad possibilities throughlogical reasoning. Benefitting from a solid
foundation in mathematics from a young age,a sea of career opportunities can open up,
allowing people to forge their own unique path.

Hang Lung COVID-19 Relief Fund 2.0 – Since theestablishment of the “Hang Lung COVID-19 Relief Fund”
in 2020, Hang Lung has disbursed more than RMB
20 million to provide targeted support for urgent public
pandemic countermeasures and in aid of the most
severely affected in our communities across Hong
Kong and the Mainland, including an endowment of
RMB 6 million for the establishment and operation ofLeishenshan Hospital in Wuhan in 2020. To offer areprieve from the severe challenges as a result of the
COVID-19 pandemic, the Group created the “Hang Lung
COVID-19 Relief Fund 2.0” in 2022. The HK$ 13 million
fund supported urgent pandemic countermeasures inHong Kong and mainland China, particularly Shanghai,
Shenyang, and Dalian. The Group made a donation of
HK$ 6 million for financing the HKSAR government’s"Let’s Sportsor!" program – Following an overwhelming

operation of “mobile cabin hospitals” earlier this year.

response to our call for joining the “Let’s Sportsor!”In April, Hang Lung announced a further injection ofprogram last year, the Hang Lung As One Volunteer

RMB 3 million into the “Hang Lung COVID-19 Relief

Team was pleased to bring back the program this year

Fund 2.0” as a part of the ongoing fight against thein collaboration with the Hong Kong Federations ofpandemic on the Mainland, where funds have been

Youth Groups (”HKFYG”). With the cumulative number of

deployed for the provision of health protection items andexercise hours converted to sponsorship of free fitness

other necessities, among other initiatives, for those mostcourses for underprivileged children, colleagues wereaffected by COVID-19.

inspired to pledge to exercise more.
Over 80 colleagues took part in the program andCaring for Physical and Mental Wellbeing – During
the recent suspension of physical classes on theaccumulated close to 3,500 training hours in about two

Mainland, children were confined at home. Several

months. Our CEO Mr. Weber Lo also took the lead inprojects collaborated with tenants to host online painting

supporting the program. With the concerted effort ofclasses for children of frontline pandemic workers. With

our volunteers, over 100 children, some of whom havereinforcement for the physical and mental wellbeing ofspecial educational needs (SEN), were able to enjoy

their children, it is hoped that frontliners found support tocomplimentary sports training schemes such as roller-

continue their valiant work without worries.

skating, football, and touch rugby.

Expressing Gratitude to Frontline Workers – The Hang
Lung As One Volunteer Teams also demonstrated
our corporate spirit of caring for the community byproviding their unwavering support through groundlevel community action. These initiatives included
the distribution of health protection items to
medical personnel and community workers, and freerefreshments and hot beverages to pandemic frontliners,
as gestures of warm care and profound respect.

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Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

the Chenghuang Temple complex (Ming Dynasty circa
1369) in Center 66. In particular, we took three years
to restore the Zhejiang Xingye Bank into the Starbucks
Reserve flagship store with minimal interference andreversibility as required by the local authority. Also,
living quarters for church clergy built in the 1930s at
the site of Westlake 66 have also been preserved byour construction team. The construction team carefully
dismantled the structures and put all the disassembled
parts into temporary storage. Each part was clearlylabeled and those broken were restored. Upon project

Supporting the Wellness of Child
Patients and Underprivileged Children
The suspension of classes and social distancing
measures in force have deprived children –in particular COVID-confirmed child patientsor those under home quarantine – of muchneeded and essential interactive learning, social
activities, and play time. The “Hang Lung
COVID-19 Relief Fund 2.0” gave emotional
support to these affected children, while
alleviating the stress faced by their parents or
carers. The Group’s disbursal of funds fromthe “Hang Lung COVID-19 Relief Fund 2.0”
for a partnership with Playright Children's Play
Association (Playright) funded the donation of
1,500 playpacks to child patients diagnosed
with COVID-19 in hospitals and HA Community
Treatment Facility. In addition, the Grouparranged two months of online interactive playsessions with Playright for 1,000 underprivilegedchildren, to relieve anxiety and fear withattention to physical and mental wellbeing.

completion, the team will transport the parts back to thesite for reassembly.

Center 66’s Curio Collection by Hilton Brand
The heritage building, which was formerly the residenceof local historical figure, Zhang Xiaocheng, is a typicalblend of Chinese and Western architecture from thelast century. Extending Hang Lung’s experience inrejuvenating historical buildings and commitment tocultural conservation, the revitalized building melds
antique elements with contemporary style to create an
exciting destination for leisure and dining.

Next Steps
Cultivating and sustaining wellbeing includes wideranging considerations for our employees, customers
and the wider community. In support of our ambition tooffer an unrivaled environment for health and wellbeing,
we are now developing a 2025 Wellbeing Plan that willtake stock of our wide-ranging initiatives and help us
to prioritize and further improve these initiatives in theyears ahead. The plan will also highlight innovative ideas
and partnership opportunities for even greater impact

Heritage Conservation

among like-minded stakeholders. In terms of community

Recognizing that cultural conservation is vital forinvestment, in 2023 we will articulate and measure thesustainability, we aim to strike a balance between
conserving local heritage and adding vibrancy to local
communities. We have carefully considered the planning,building and operations of our developments by
restoring, preserving and integrating historical buildings
into our project designs wherever possible. In recent
years we conserved several historical buildings including
the Zhejiang Xinye Bank (1922) near Riverside 66, and82

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social impact of our signature programs in a clear,consistent and robust manner with reference to theBusiness for Societal Impact (B4SI) Framework. We will
share highlights in our next report.

Sustainable
Transactions
Promote sustainability
practices in all typesof business
transactions| Relevant GRI Disclosure |204 (2016), 308 (2016), 403 (2018), 416 (2016), 418 (2016)

Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

AppendicesSustainable 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 andtowards best practices. In this chapter, we will describe our collaboration
with stakeholders and how we integrate the sustainability agenda at various
stages of our business cycle.
2022 Performance Highlights

Launched a new model ofsustainability partnershipwith LVMH Group to leadclimate and sustainability
action in real estate andretail through the endof 2025.

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Secured 46% of
total debts andavailable facilities fromsustainable financing.

Plaza 66, Shanghai
received LEED V4.0 EB:
O+M Platinum and WELL
V2 Core Platinum ratings
becoming the first largescale commercial officecomplex to receive bothin mainland China during
its operation stage.

Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

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. On the one hand, we are collaborating with a small number ofkey partners with whom we have strong relationships, so that we can build on our mutual understanding to innovate
and accelerate progress together, and capture key insights efficiently. On the other hand, we are also developing asystematic approach towards engaging all our suppliers and tenants on sustainability priorities over time.
Appendix

Sustainability in
ClimateWellbeing
Sustainable
Appendix
Real estate will need to undergoIntroduction
significant transformation
the comingResource
decades. Together
with ourbusiness partners
Strategy
Resilience
Management
and stakeholders, we hope to demonstrate how
we are increasingly
findingsynergies between theTransactions
financial and ESG

objectives of our business, and that by further integrating the two into a unified strategy, we are forging our own resilientand distinctive path to sustainable growth in real estate.

2030 Goal

ing

ce
es
es

g
s

Collaborate with all suppliers and customers to advanceour sustainability priorities

2025 Targets

Embrace technology to build arobust digital platform for assessing
suppliers’ ESG performance

100% of marketing events
evaluated for their sustainability
impacts

50% of total debts and available
facilities from sustainablefinance

100% of potential asset
acquisitions include ESG due
diligence

100% of leases incorporate
sustainability provisions

Sustainability Issues Across Our Value Chain

It is important to understand the relevant sustainability

To support our overarching goal of achieving sustainableissues across our value chain in order to engage

growth, we consider sustainability to be integral to ourbusiness value chain.

stakeholders and explore opportunities to secure
partnership in sustainability.

ing
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Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

AppendicesFinancing – In addition to our own revenue streams,

To further extend our commitment to integrating ESG

we leverage various financing instruments to maintainconsiderations in our investment decisions, the Group

healthy cashflow and sustain our growth. We regularly

established the Hang Lung Group Sustainable Financestrengthen our partnerships with sustainability-minded

Framework (“the Framework”) in December 2022 to:financiers and investors, while driving capital towardsa) extend coverage to the wider Group; b) cover a

projects and initiatives that create a broader positive

wider range of financing instruments; and c) extend

impact for the environment and society.

the scope of the eligible investments to include social

Design and Development – As a commercial real estatedeveloper, we aspire to design and develop properties
that create long-term value. To do this, we ensure thatsustainability has been integrated throughout our project
design and development cycle.

projects. The Framework, published in January 2023,
was developed in line with international guidelines suchas the Sustainability Bond Guidelines 2021 (SBG), Green
Bond Principles 2021 (GBP), Social Bond Principles 2021
(SBP), the Green Loan Principles 2021 (GLP) and Social
Loan Principles 2021 (SLP). We engaged Sustainalytics,

Leasing, Sales and Business Operations – Commercial

an independent environmental, social and governanceproperty leasing is the core business of the Group,

research, ratings, and analysis firm, to provide a second-

supplemented by the sale of selected properties. We

party opinion on the Framework to affirm that it isensure that the spaces we lease and offer for salecredible, robust, and impactful, and fully aligned withare sustainable. Doing so appeals to tenants andcurrent market standards.

customers who are also increasingly concerned about
global sustainability challenges.

Matters related to sustainable finance are overseenby the Sustainable Finance Subcommittee (SFS)

Service Delivery – Our building operations, theunder the SSC. The subcommittee meets regularly toservices that we provide, and the activities of ourreview the latest market development and the Group’s

tenants consume substantial resources. It is, therefore,

progress on sustainable finance, as well as to approveincumbent on us to enhance the operational efficiency

eligible projects where required, as stipulated underof our buildings while maintaining a safe and healthy

the Framework.

space to minimize adverse effects on our environmentand communities.
StatusStakeholder Engagement – Every day we interact
with hundreds of thousands of people, from tenants

2025 Target

and customers to business partners and community

50% of total debts and available facilities fromsustainable financemembers. We make efforts towards actively engaging
with all stakeholders in sustainable practices, so thattogether we can drive systemic changes for ourplanet’s future.

2022 KPI

On track

Completed

35% of total debts and available facilities fromsustainable finance by the end of 2022

Investors
Sustainable Finance Framework

In 2021, we set a target that Hang Lung Properties

In response to global investors’ growing interest in

obtain 50% of total debts and available facilities

sustainable finance, we developed the Hang Lungfrom sustainable finance by 2025. Sustainable finance

Properties Green Finance Framework in June 2019. It

now accounts for 46% of our total debts andenables Hang Lung Properties to raise funds underavailable facilities.

due scrutiny to finance projects delivering environmental
benefits, thereby supporting our business strategy andvision for leadership in sustainability.

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Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

AppendicesGreen Loans and Green Bonds
As of the end of 2022, Hang Lung Properties had secured 10 green loan facilities and issued 11 green bonds underthe Hang Lung Properties Green Finance Framework, with the proceeds allocated to predefined eligible green projects
as follows:

Green Loan and its Allocation (as at December 31, 2022)
Year
SignedFacility Amount(HK$’M)

Drawn Amount(HK$’M)

2019

1,000

580

Total

1,000

580

Arranged in MainlandYear
SignedFacility Amount(RMB’M)

Drawn Amount(RMB’M)

Allocated toSpring City 66, Kunming

2020

1,557

1,557

Spring City 66, Kunming

Forum 66, Shenyang

2021

490

490

Forum 66, Shenyang

Riverside 66, Tianjin

2021

234

234

Riverside 66, Tianjin

Westlake 66, Hangzhou

2021

500

383

Westlake 66, Hangzhou

Forum 66, Shenyang

2022

517

517

Forum 66, Shenyang

Olympia 66, Dalian

2022

810

810

Olympia 66, DalianHeartland 66, Wuhan

2022

590

590

Heartland 66, Wuhan

Heartland 66, Wuhan

2022

880

880

Heartland 66, Wuhan

Westlake 66, Hangzhou

2022

500

23

Westlake 66, Hangzhou

Total

6,078

5,484

Arranged in Hong Kong
Hong Kong

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

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Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

AppendicesGreen Bond (as at December 31, 2022)
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

390

Jan 13, 2029

HK$’M

605

605

Jan 24, 2029

HK$’M

590

590

Total

6,340

Allocated

4,871

Pending for Allocation

1,469

Hong Kong

2021

2022

Green Bond (HK$’M) (as at December 31, 2022)
Allocated to:

2020

2021

2022

Total

Shenyang

Forum 66

-

365

10

375

Wuxi

Center 66 (Phase 2)

-

175

4

179

DalianOlympia 66

-

24

-

24

Kunming

Spring City 66

634

41

145

820

Wuhan

Heartland 66

745

620

-

1,365

HangzhouWestlake 66

-

266

22

288

Hong Kong

228 Electric Road

-

47

288

335

The Aperture

-

-

287

287

Green Panda Bond (1)

-

1,198

-

1,198

1,379

2,736

756

4,871

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

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Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

Reporting Criteria• A Green Bond is added to the Sustainability Report when it was issued by the Company or its subsidiaries during thereporting period.
• A Green Bond is removed from the Sustainability Report when it has been fully repaid by the Company or
its subsidiaries.
• A Green Loan is added to the Sustainability Report 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 Report when it has been repaid.
• The green projects eligible for the use of green proceeds are approved by the 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 Green Finance Framework, we allocated green loan and green bond proceeds
to nine properties as follows:

Portfolio

Notable sustainability initiatives

Center 66 – Phase 2(Wuxi, mainland China)• Designing a ground source heat pump system for a historical building

GFA: 107,118 m

2• Applied a radiant cool ceiling system for efficient temperature control asa pilot in the sales office• Conducted climate hazard and vulnerability assessment and identified
potential improvement measures to our current design.

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

2• Reduced electricity intensity by 18.96% in 2022 compared with 2018
• Without using the local heating utility, we installed a high-efficient heatrecovery system at our hotel and office building which can reduce 100
MWh of electricity and 25,000 m3 of natural gas during cooling days; andan additional 5,000 m3 of natural gas during heating days
• Obtained WELL Health-Safety Rating for mall and office building

Olympia 66(Dalian, mainland China)
GFA: 221,900 m2• Reduced electricity intensity by 25.43% in 2022 compared with 2018
• Installed solar panel system generated 160 MWh renewable power in
2022 for carpark lot lighting• Obtained WELL Health-Safety Rating

Spring City 66(Kunming, mainland China)
GFA: 333,112 m2• 100% powered by renewable energy to achieve net-zero carbon
emissions in annual electricity consumption for landlord andtenant operations• A hospital-grade ventilation system (MERV 16) with UV light forsterilization, improving indoor air quality and obtained WELL HealthSafety Rating for both mall and office building• Launched a sustainability showcase named “The Everlasting Pulseof the City” in November to introduce stakeholders to Hang Lung’s
sustainability strategy, goals and targets, as well as to promotesustainable lifestyles and the values of sustainable education,
sustainable dining, and sustainable fashion

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Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Portfolio

Notable sustainability initiatives

Riverside 66(Tianjin, mainland China)• Reduced electricity intensity by 20% in 2022 compared with 2018baseline; electricity intensity has dropped for six consecutive years(from 2016-2022)

GFA: 152,831 m2• Conducted a climate hazard and vulnerability assessment in December
2022 and had identi• Obtained WELL Health-Safety Rating

Heartland 66(Wuhan, mainland China)
GFA: 328,612 m2• Adopted advanced Building Management System with a highly efficientbuilding service system• Applied IAQ sensors in malls and offices to monitor real-time IAQ levels• Obtained WELL Health-Safety Rating for shopping mall andoffice building

Westlake 66(Hangzhou,
mainland China)• Installed closed-loop ground source heat pump system for hotel building

GFA: 194,100m2• Since July 1, 2022, the construction site has been fully powered byrenewable energy, and has already avoided approximately 80 tonnes ofcarbon dioxide• Explored feasibility and completed an application with the municipality in
Hangzhou for the design stage of a net-zero energy pilot project• Deployed 5G technology to monitor, among other things, construction
safety and quality, energy consumption, and dust and noise levels,
to ensure that environmental indicators in the construction stage
meet requirements
228 ElectricRoad Redevelopment(Hong Kong)
GFA: 9,754 m

2• More than 75% (by weight) of all construction and demolition waste
generated on site will be diverted from landfill• At least a 35% energy reduction from the baseline model ASHRAE
90.1-2010 (US) and 28% from the baseline model BEC 2018 (HK)• Use of the Battery Energy Storage System (i.e., Enertainer) insteadof diesel generators during construction to minimize environmental
pollution. As of February 2023, 43 tonnes of carbon emissions havebeen avoided

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

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Sustainability Report 2022

• 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

Sustainable
Transactions

AppendicesIntroduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

ESG Due Diligence in Asset Acquisitions
Status2025 Target

On track

100% of potential asset acquisitions include
ESG due diligence.
2022 KPI

Completed

Develop ESG due diligence guideline.

For optimal decision making and to identify any
material ESG risks or opportunities that could impact
our business, we aim to consider ESG factors in ourinvestment decisions.
In 2022, we developed an ESG due diligence guideline
for our potential asset acquisitions in mainland China.
Under the guideline, a variety of ESG factors including
biodiversity, heritage conservation, accessibility, healthimpact assessment, renewable energy, and climate
adaptation should be considered as early as possible.

The Aperture

Sustainable Building Design

As of December 2022, over 80% of our overall

Green Building Design and Certification

construction floor area is certified as green buildings.

We are dedicated to adopting international best practices
in the design and construction of our buildings. We first
focus on enhancing the overall energy and environmental
attributes of our buildings. Since 2007, we have been

The full list of our green building certifications is provided
in Appendix 4.

Healthy Building Design and Certificationcommitted to achieving a Gold rating or above under the
LEED certification program or equivalent, for all of our
new Mainland and Hong Kong properties.

Status2025 Target

On trackbuildings, including 23 existing buildings and 16 projects

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

under development. We obtained two green building2022 KPI

To date, 39 buildings have been certified as green

certificates in 2022 – LEED Platinum for Grand Gateway
66 and Plaza 66 in Shanghai. Please find more
information in our case study below.

Completed

Conduct a feasibility study to obtain the China
Healthy Building Label or equivalent in at least
one property

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Our
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ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

In recent years, we have also searched for ways toimprove the wellbeing of building users in supportof our vision to create compelling spaces thatenrich lives. We apply WELL certificates for our newbuildings and existing buildings undergoing majorenhancement works.
WELL building standards from the International WELL
Building Institute (IWBI) are developed based on thescience of creating physical and social environmentsthat benefit the health, wellbeing and performance ofthe building occupants. The standards coer over 100
features on ten topics including indoor environmental
quality, water quality, thermal comfort, and theworking environment.
In addition to the WELL Gold rating (Pre-certified) for the
228 Electric Road Redevelopment in Hong Kong, Plaza
66 in Shanghai garnered the WELL Platinum certificationin 2022. We are also applying for WELL certification
for Westlake 66 in Hangzhou, and we expect others
to follow.
In January 2023, we achieved the WELL Health-Safety
Rating (WELL HSR) from IWBI for 19 properties locatedin Hong Kong and eight cities in mainland China. This
WELL HSR covers all shopping mall centers and office
towers of Hang Lung’s mainland properties.
WELL HSR was created in response to the COVID-19
pandemic and consists of operational interventions
that can be made to help mitigate its spread, as
well as the spread of similar diseases. As the world
moves beyond the pandemic, the WELL HSR seal at
Hang Lung’s properties remains a visible indication ofconfidence and trust that the Company has achieved
third-party verification for evidence-based measures andbest practices for health and safety.

As another notable wellbeing-related initiative, theremaining developments of Forum 66 in Shenyang
completed a rapid appraisal of a desktop Health Impact
Assessment (HIA) for the retail indoor green atrium in
September 2022.
We analyzed both negative and positive aspects ofhealth determinants including site activity impacts (e.g.,physical environment, built environment, and communityand social factors), design and operation-related impacts(e.g., indoor air quality, water quality, indoor amenity
safety design, humidity control, crowd management, andplant maintenance). A total of 18 recommendations wereidentified and will be further reviewed for incorporation

As of December 2022, nearly 64% of total construction

into the project based on their feasibility. The health-floor area were certified with or have applied for WELL

related determinants' performance will be regularly

or WELL HSR.

monitored and evaluated.

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Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

Case Study

Plaza 66 Achieved Top Ratings in Global
Sustainable Building Certifications
Plaza 66 in Shanghai achieved Platinum ratings for• 95 out of 100 U.S. Energy Star rating

LEED (LEED V4 O+M: EB) and WELL (WELL V2• 66.9% sustainable consumables utilization rateCore) certifications in 2022. The recognition marks
the first time a large-scale commercial office complex
in mainland China received both certifications during
its operating stage. Plaza 66 was built in 2001 andcompleted an asset enhancement in 2017. Its key
sustainability features include the following:• 91.9% waste diversion rate for daily consumables• Enhanced indoor air quality monitoring and HEPA air
filtration system• WELL Standard certified purification system anddrinking water that curbs the use of and plastic wastefrom bottled water.

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Our
Sustainability
Strategy

Accessibility

On track

Wellbeing

Sustainable
Transactions

Appendicesplans, 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 from 2022 onwards.

Conduct an audit of all our properties andcorporate practices on how to enhancewellbeing and opportunities for persons
with disabilities
2022 KPI

Resource
Management

and passenger conveyors, braille and tactile floor
Status2025 Target

ClimateResilience

In addition, we have established a 2025 target to audit
all our properties and corporate practices on how toCompleted

Conduct an audit of our corporate practices
and formulate recommendations

enhance wellbeing and opportunities for persons withdisabilities and expect many further insights to emerge
through this process.

Supplier Collaboration
To enable our spaces to be more inclusive for everyone,
we incorporate accessibility features into building
designs for new projects as well as existing buildings
with improvement works.
We also prioritize design for accessibility at our new
projects. For example, we conducted detailed site
inspections to identify potential barriers to interaction
for people with disabilities at Westlake 66. Accessibility
enhancements in design were implemented, including
those in the accessible toilets (e.g., adjusting the door
width, L-shaped grab bar, height of washbasin andmirror), service desks (e.g., knee clearance), and lift cars
(e.g., mirror-like surface, grab bars).
Our projects in mainland China such as Westlake 66
include various accessible designs such as entrances
allowing for wheelchair access, accessible parking
spaces with enough turnover space, accessible toilets
with enhanced design and lifts with audio broadcasting
systems, and outdoor barrier-free facilities. We havealso designed two accessible hotel rooms in Westlake
66 to cater to people with disabilities, and further
design enhancements to improve accessibility arebeing developed.

Beyond compliance and building certifications, wedeveloped an initial framework with 16 ideas toimprove the sustainability of our buildings and projects,
including low embodied carbon materials, energy
efficiency, environmentally friendly design features,indoor environmental quality, and employee wellbeing.
Among projects under development in Hong Kongand mainland China, we examine the feasibility ofincorporating any of the 16 improvement ideas, subject
to scheduling and other considerations.
In 2022, we engaged more than 10 key project supplierson these ideas. The following are some highlights:• Low carbon concrete with pulverized fuel ash (“PFA”):
learning from our experience in Hong Kong projects in
2021, we included a requirement to incorporate up to
8% PFA in concrete in the tender specification for themain contractor on our Mainland projects. In 2022, weincorporated this requirement in the procurement for
the remaining phases of Forum 66 in Shenyang.
• Closed loop ground energy system (GES): theGroup’s electrical and mechanical design guideline
was updated to include the requirement to conduct
feasibility studies for GES during the project design
stage. After completing analysis in 2022, we will

With reference to the Hong Kong Building Department’s

deploy a GES system in the Phase 2 development of

statutory requirement in Design Manual – Barrier

Center 66 in Wuxi.

Free Access 2008, we have conducted a thoroughaccessibility inspection of Gala Place, Mongkok, Grand
Plaza, Mongkok, the Standard Chartered Bank Building,Central and Kornhill Plaza, Quarry Bay. Inspection items
include the provision of carparks, access route, ramps,
dropped curbs, steps and staircases, handrails, corridors,
lobbies and paths, doors, toilets, signs, illumination,
emergency call bells in accessible toilets, lifts, escalators

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• Waste concrete recycling: we will conduct a feasibility
study on recycling and reusing broken concrete
through CO2 mineralization technology, producing new
low carbon aggregate and to make other forms ofbuilding materials (e.g., low carbon concrete blocks).

Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices• Use of EAF rebar: recycling scrap steel can reduce theproject development, our internal Project Management

embodied carbon in steel production, and EAF is more

Manual includes sustainability requirements through theenergy efficient than the traditional blast furnace (BF)-

whole project life cycles. These include:

basic oxygen furnace (BOF) production process. We
have adopted EAF rebar in the Phase 2 development of• land/asset acquisition;

our Center 66 project in Wuxi, and the amount of EAF• project planning;

rebar used in the project has increased from 3.85% in• supplier and consultant registration;

2021 to 6.88% in 2022.
• New refrigerants for chillers: in selecting refrigerants
for chillers, we consider their ozone depletion andglobal warming potential. Given the relatively low
environmental impact of refrigerants such as R-514A
and R-1233zd, we adopted R-514A in the chiller of theGrand Hyatt Kunming hotel.
Beyond the 16 specific ideas we continue to apply across• tendering procedure;• performance evaluation; and• construction site safety management.
We also set a 2025 target to have 100% of potential
asset acquisitions include ESG due diligence. The ESG
due diligence guideline was developed in 2022.

our projects, we are exploring with various solution

Project Environmental Management

providers options for a digital carbon management

Activities at construction sites can result in water, sound,platform. We expect that such a platform could provide

and air pollution, as well as demolition and construction

the following functions: 1) calculate and monitor ourwaste. We consider these potentially negative impacts

Scope 3 emissions for reporting disclosure; 2) simplify

through detailed environmental impact assessments

and streamline ESG data collection ; and 3) enable moreaccording to local laws before construction begins.

robust assessment of suppliers’ ESG performance.

To reduce its environmental impacts to the surrounding
environment, our construction site of Westlake 66
in Hangzhou and Center 66 Phase 2 project

Building Information Modeling (BIM)
Since 2018, our BIM Taskforce has standardized
and enhanced the adoption of Building
Information Modeling (BIM) in new projects
under development with tangible results. To
date, we have leveraged BIM in all projects
under development and major renovation
projects in Hong Kong and mainland China, withover 20,000 cases of design conflicts detected
and resolved.

in Wuxi continued to implement environmental
measures 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• Installation of windproof and dust-proof mesh

Sustainable Project Management
Project Development
Collaboration with our project consultants andcontractors is a critical factor in successfully delivering

To further reduce the carbon footprint of ourconstruction sites, starting from July 2022, we procured
renewable energy at two of our construction sites inmainland China – Westlake 66 in Hangzhou, and Grand
Hyatt Kunming and Grand Hyatt Residences Kunming.

sustainable properties of excellent quality into ourportfolio. To enhance sustainability performance inHang Lung Properties Limited
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95

Introduction

Our
Sustainability
Strategy

Project Safety Management

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

The wellness of contractors and employees during
Status2025 Target

On track

construction, especially over hot summers, is a key
safety and wellbeing issue for us, and we provide coolingmeasures as well as on-site training to ensure health andsafety. Measures include:

Maintain zero work-related fatalities for
employees and contractors
2022 KPI

ClimateResilience• distribute heatstroke prevention and cooling materials
Completed

Study smart technology options anddefine practical approaches for enhancing
construction site and employee safety(watermelon, cold drinks and heat dissipation items,
iced green bean soup, and cooling medicines)• provide physical examinations to workers to reduce
the risk of illness or complications in hot weather• install water spray system in working areas

We continue to implement a construction site safety• provide cooling fansmanagement system at all our active construction sites• provide covered rest area with good ventilationin Hong Kong and mainland China, overseen by the
Design and Development, Project Management and Cost
and Controls departments. We go beyond the industry
norm in appointing designated safety consultants as
independent parties to monitor the performance ofour contractors at key mainland China and Hong
Kong projects.
In 2022, we maintained zero fatalities at our construction
sites in mainland China for the fifth consecutive year, andthe overall accident rate was improved to zero accidents
per 100,000 man-hours. Five technology options for

Other safety measures introduced at our construction
sites include:• provide clear demarcation routes for site staff/
workers and moving objects• improve lighting and traffic speeding
limitation provisions• ensure the staff competence for traffic control
and diversions• provide helmets with flashing lights during nightwork

enhancing construction site and employee safety were

• promote a safety culture, norms and systems

identified during the year and some of them were• conduct frequent site inspections to enhance project

implemented in the projects. We will continue to optimize
work processes and promote safety awareness among
construction site workers.

quality and site safety• adopt the Digital Quality Management System(DQMS) for management of safety non-compliance

We also introduced measures to enhance the safetyincluding recording, rectification and analysis of non-performance of our projects under construction,

conformance

including updating the Hang Lung Safety by
Design guidelines and Safety Handbook of the
Project Management Manual in 2022, exploring
smart innovation technologies to improve site safety
performance, and Project Management colleagues
and/or site staff ensuring the safety awareness of• audit the safety conditions via videotelephonyand CCTV• adopt 4G/5G wireless signal transmission on site
• provide regular safety training to the site staff andcontractors by the safety consultants

contractors. Safety training will be provided to workers• share lessons learned with all internal and externalon the construction sites, covering topics related to site

stakeholders in regular quality/safety technicalsafety, use of personal protective equipment and use ofreview sessions

equipment on site.

96

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Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

Since the outbreak of COVID-19, we adopted pandemic

thermometer before entering the construction sites.

control and precautionary measures at construction

We also provided masks and PCR tests to workers

sites to safeguard the health and safety of ouron site and established a special policy and isolation

employees and contractors. During 2022, all personnel

procedure in case of tracing workers with fever ormust have their temperature checked with an infrared

COVID-19 symptoms.

Key construction safety performance indicators in mainland China
2020

2021

2022

7

7

6

7,769,227

4,721,091

6,388,380

Number of fatalities

0

0

0

Number of accidents

1

0

0

Number of near-misses

2

1

0

Number of accidents per 100,000 man-hours

0.013

0

0

Total construction safety training hours

450.0

7,082.5

691.5

Number of active construction sites
Total man-hours

For the two construction projects in Hong Kong, we

for working at height on all projects (both in Hong Kongcontinued adhering to best practices in construction

and mainland China) to increase vigilance.

site safety management. One accident was recorded in
September 2022: a worker fell down from a height – thetop of a lift car – and sustained a minor bone fracture
because the worker had not attached a safety belt during
the installation of the lift car at ground level. In response,

In addition to incident-specific training, we also sharesafety lessons among all project teams (both Hong
Kong and mainland China) in bimonthly quality/safety
review sessions.

safety consultants carried out enhanced training specific

Key construction safety performance indicators in Hong Kong
2020

2021

2022

2

2

2

97,434

203,580

881,970

Number of fatalities

0

0

0

Number of accidents

0

0

1

Number of near-misses

1

1

0

Number of accidents per 100,000 man-hours

0

0

0.113

510

5,377

8,955

Number of active construction sites
Total man-hours

Total construction safety training hours

Hang Lung Properties Limited
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Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

AppendicesSustainable Operations
Digital Quality Management
System (DQMS)

Environmental, Health and
Safety Management

Given the mega scale of most of our projects
and considering the risks associated with paperbased inspection records, in 2019 we havefully adopted a DQMS, a multi-platform cloud
solution for construction workflow inspection
and quality and safety management in projects
under development in mainland China and Hong
Kong, making us one of the early adopters of
the solution in the local real estate sector.

Our first consideration is to protect the safety ofcustomers and tenants within our properties. To
familiarize our staff, tenants, and customers andconstruction units with effective evacuation and otherprocedures to deal with emergency situations, weregularly conduct emergency and fire drills at our
premises under our Crisis Management Protocol.
Based on local legislative requirements, our health andsafety management covers all employees of the Group.
In 2022, we enhanced our occupational health and safety
management system for the property managementof our Hong Kong portfolio to meet the international

Construction Supplier Management

standard ISO 45001. We reviewed relevant policies
and procedures and enhanced our training system

We closely work with our building materials suppliers

to achieve a comprehensive Occupational Health andand contractors for construction projects to advance

Safety Management system for ISO 45001 certification

our sustainability agenda. We maintain a masterin early 2023. We also plan to develop an environmental

tenderer list for our contractors, suppliers andmanagement system for our Hong Kong properties in

consultants. All potential vendors are subject to a

the years ahead to ensure continual improvement in

pre-qualification process to ensure that the vendors

our operations.

fulfill our expectations in multiple aspects including
compliance, professionalism, as well as health andsafety, sustainability, and green building capabilities.
Also, we conduct annual reviews of our suppliers toevaluate their overall performance.
In 2022, we made significant progress in advancing
sustainability across our operations and project supply

We obtained the WELL Health and Safety Rating (HSR)
for all Mainland properties as well as the Standard
Chartered Bank Building (SCBB) in Hong Kong, covering
19 buildings. The HSR evaluation focuses on thefollowing five major areas:• Cleaning and sanitization procedures

chains. In response to our latest corporate policies• Emergency preparedness programson ESG, we also updated our Contractors/Suppliers/• Health service resources

Consultants Master Tenderer List Approval Procedurein 2022. In contract works procurement, we had about• Air and water quality management

100 suppliers in Hong Kong and about 270 suppliers in• Stakeholder engagement and communication

mainland China.

We received full scores in “Cleaning and Sanitization
Procedures” and “Air and Water Quality Management”
for all 19 properties amid the challenges of thepandemic, demonstrating our dedication to creating ahealthy and safe environment for everyone who visits
our properties.

98

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Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Indoor Air Quality

Since 2021, we have incorporated a sustainable

The indoor air quality of our premises is a key parameterprocurement strategy in our Central Procurementthat we strive to improve to safeguard the health andwellbeing of our customers. Since 2019, we have beenusing medical grade air filtration systems across ourentire portfolio in mainland China, going beyond national
requirements to safeguard the health of our tenants andcustomers. These air filtration specifications, including
electrostatic precipitators and photocatalytic oxidation
filters, have also been incorporated into our project
design guidelines to ensure that new projects adopt
them as a minimum.

enhanced ESG considerations. Since that time, the ESG
requirements have been strengthened for new supplierregistrations, prequalification and tendering processes.
Starting in 2022, all new suppliers undergo ESG review at
the registration stage and we will conduct ESG reviews
with our existing suppliers during contract renewal or
regular supplier review. We target completing an ESG
review of all our suppliers by the end of 2024 .

procurement areas, including hygiene, cleaning andAnti-Epidemic Hygiene Measures Certification HM00684
launched by the Hong Kong Tourism Board (HKTB)
and Hong Kong Quality Assurance Agency (HKQAA).
Our Hong Kong properties joined the Environmental
Protection Department’s Indoor Air Quality Scheme andreceived ten certifications. In 2022, we were among
the first commercial companies in Hong Kong tohave adopted C-POLAR air filters, which have beentested by multiple overseas laboratories and proveneffective at arresting and killing airborne viruses andbacteria, including the COVID-19 virus. The air filters havebeen installed at designated medical hubs that houseprominent clinics and healthcare centers in Hang Lung
Centre in Causeway Bay, Grand Centre in Tsim Sha Tsuiand Grand Plaza in Mongkok.

sanitation, IT-related equipment, interior renovation
works, E&M systems, and stationery. This process led
various internal departments such as Administration,
Service Delivery, and IT to work more closely together
in 2022 to strengthen our internal understanding of andapproaches to ESG priorities and procurement practices.
For instance, our cleaning contractors use certified
cleaning products which eliminate harmful ingredientcontents and reduce potential associated hazards tohuman beings and the environment.
We continued to work with our suppliers to ensure theiralignment with our Code of Conduct for Contractors,
which sets out our expectations of suppliers covering
compliance with laws and regulations, integrity, healthand safety, child or forced labor, environmental
conservation and data protection. Suppliers’ records

Operational Supplier Management

and practices are periodically examined to determine
StatusOn track

Embrace technology to build a robust
digital platform for assessing suppliers’
ESG performance
2022 KPI

Department – Operating Manual and Procedures with

ESG requirements are also embedded into priority

In Hong Kong, most shopping malls obtained the2025 Target

Appendiceswhether the suppliers may present any sustainability
risks to the Group and whether any risk mitigation
measures should be taken.
In terms of goods and services procurement, in
2022 we had about 2,700 suppliers in Hong Kong

Completed

Examine technology options, identify
parameters and define process elements ofplatform as basis for RFP in 2023

and about 8,900 suppliers in mainland China. About
90% of our procurement was sourced from Hong
Kong and mainland China locally to minimize theenvironmental footprint from transportation and tobenefit local communities.
We understand the complexity and challenges in the

We maintain close communication with a wide range

evaluation of supplier ESG performance and haveof suppliers including goods and services providers

formulated a 2025 target to build a robust digitalfor corporate services and property management suchplatform to monitor suppliers’ ESG performance, track

as cleaning, electrical and mechanical, and security

industry trends, and provide analytics and insights to ourservice providers.
Hang Lung Properties Limited
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Introduction

Our
Sustainability
Strategyinternal departments. Doing so will help us expand thebreadth and depth of our supplier engagement on ESG.
In 2022, we started to develop an ESG questionnaire
for suppliers covering six areas: ethics; sustainability;
employee care; care for society; governance; andbusiness continuity. We have also conducted market
intelligence research and have been defining key
elements of the ESG platform as the basis for requestingtender proposals in 2023, as required.

Tenants
Tenant Partnerships
The idea of landlord-tenant partnerships to advancesustainability is at an early stage globally. While green

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions"This partnership will be amodel around the world, of
how to create new partnerships between
landlords and tenants. We need toaccelerate improvements to the stores'
environmental footprint. Synergies such as
this one are key to addressing sustainability
challenges. The Common Charter we areannouncing in March 2023 is a new phasein our partnership, one of action, through our
20 concrete measures. The Real Estate andClimate Forum established by the Groups isreally a portfolio of solutions."

leases are starting to emerge, they tend to focus on
adding clauses to leases for specific individual tenants,
either in the form of pledges or limited incentives.
In 2022, Hang Lung and LVMH launched a new modelof sustainability partnership across mainland China to
the end of 2025. The partnership, the first of its kind
globally, demonstrates the leadership and commitmentsof both Groups in the sustainability arena. It also
reimagines the relationship between property owners
and leading retail brands on sustainability. Pleasefind more details about this partnership in the casestudy below.

Changemakers in Hong Kong at the Real Estate & Climate Forum

100 Hang Lung Properties Limited
Sustainability Report 2022

Appendices

Hélène Valade, LVMH Group Environment
Development Director

Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

Case Study

Hang Lung and LVMH
Sustainability Partnership
We work with like-minded stakeholders to address

The partnership is rooted in equality and mutual respect.

systemic challenges and amplify positive impacts.

For example, at the Real Estate & Climate Forum, theIn October 2022, we embarked on a first-of-its-kind

two Groups were allotted an equal number of spaces

sustainability partnership with the LVMH group toand brought together 96 changemakers from the realaddress five key areas in mainland China over the next

estate and retail sectors to collaborate on climate andthree years. These areas include our four sustainability

sustainability solutions. The changemakers, representing

priorities of Climate Resilience, Resource Management,a diverse mix of profiles, seniority levels and areas

Wellbeing, and Sustainable Transactions, in addition toof expertise, together accessed a customized website

a fifth area – Sustainability Communication, Events, andwhere they could learn, contribute, rank ideas and join a

Progress Reviews. The collaboration spans Hang Lung’sgroup discussion.

portfolio in seven cities and 26 LVMH brands that occupy
more than 90 retail spaces with a lettable floor area inexcess of 27,000 sq. m.

It is an important feature of the collaboration that it
is non-exclusive. On the contrary, both sides hope to
see the partnership expand to include other real estate

In November 2022, just one month after signing

stakeholders. We believe that we will see a lot more of

the partnership, we hosted our inaugural Realthese types of collaborations not only with luxury groups

Estate & Climate Forum together with LVMH. The

but across all trades. Sustainability is open for all and is

endeavor brought together real estate and retailthe right thing to do.

sector changemakers to collaborate on climate andsustainability solutions. Held in a hybrid format in
Hong Kong, Shanghai, and Paris, and other cities, theforum generated over 200 ideas. The ideas spanned 12
sustainability topics including energy efficiency, learningand development, and social impact, and will form thebasis for a Common Charter due for release in March
2023. With plans to engage the employees and suppliersof both Groups, the partnership will run to the end of2025, and is expected to be renewed thereafter.

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Introduction

Our
Sustainability
Strategy

Office Tenant Survey

Resource
Management

Wellbeing

Sustainable
Transactions

AppendicesWellbeing, and Sustainable Transactions – with a fifth
Status2025 Target

On track

area, Communication and Progress Reviews.
Among key areas, we encourage our tenants to installenergy sub-meters to measure electricity use for100% of leases incorporate
sustainability provisions
2022 KPI

ClimateResilience

HVAC, lighting and other small equipment systems(such as computers, photocopiers and televisions),
Completed

Pilot implementation of sustainability leases
with our Shanghai office tenants

and to share energy, water and waste data with us
to improve operating practices. We also encourage
tenants to work with us in other key areas such ascommunity service, wellbeing, sustainable procurement,
and sustainable cleaning. Lastly, we are incorporating

We have started formulating sustainability options andrecommendations for office tenants and hope to shape
an overall approach for engaging office tenants onsustainability. In 2022 we conducted a targeted survey,

sustainable food principles for our F&B tenants andencouraging them to adopt practices that promotehealthy and environmentally-friendly operations.

geared to major office tenants at Grand Gateway 66

Customers

and Plaza 66, to assess tenants’ perspectives. The

Maintaining Quality Standards

questions in the survey covered potential collaboration
on waste reduction and circularity, and sustainability
calculations for interior fit-out and benchmarking, among
other areas. We received 37 responses from the targeted
office tenants out of 55 survey requests, representing a
response rate of 67%.

We are committed to putting customers first byproviding them with products and services that meetthe highest standards. Our operational manuals set out
the standard procedures for managing our Hong Kongand mainland China properties. Annual inspections are
conducted to identify any defects or deficiencies in the

We learned through the survey that many tenants would

building facilities and electrical and mechanical systems.

like to make their office operations more sustainable

To avoid the sudden breakdown of services and to

and would like to learn more about sustainability

ensure safety for building occupants, we also undertake

collaboration with us. Some tenants also raised someregular maintenance of facilities such as HVAC systems,

pain points and concerns that could hinder theirfire services systems, elevators and electrical systems.

participation, and we will further evaluate such concerns
as we look for ways to formulate effective suitablesustainability options for tenants.

Tenant Handbook and Fit-out Guide

In major renovations of existing properties led by ourAsset Assurance and Improvement Department, andin close collaboration with relevant departments, thedesign, layout and circulation of the malls and offices
have been rejuvenated to improve customer experience

We rolled out a Tenant Handbook and Fit-out Guide

and achieve a timeless design quality. Most works

revision plan over the last two years. The Tenant

carried out by contractors have a one to two-year defects

Handbook amendments were first introduced to Plaza

liability period (DLP) to ensure their quality, and major

66 and Grand Gateway 66’s office tenants in Shanghai

equipment has a warranty of 5-10 years on top of

in 2021 and then extended to both office and retailthe DLP. Improvements to existing systems, such as

tenants at all Mainland properties, with the Fit-out

upgrading closed-circuit television (CCTV) systems from

Guide included, in 2022. We have also incorporated

analog to digital and expanding their storage capacity,

sustainability principles into our Tenant Fit-out Guide in

were completed in Forum 66, Riverside 66 and Parc 66.

Hong Kong.
We continue to maintain high standards of hygiene
Both our Tenant Handbook and Fit-out Guide include

by revamping projects and arranging for frontline

five sustainability areas for collaboration – our four

staff to attend regular training on improving service

priorities of Climate Resilience, Resource Management,

provision. We also monitor the service quality of the102 Hang Lung Properties Limited
Sustainability Report 2022

Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendicescleaning service providers through daily checks andLounge at Plaza 66, designated Member Engagementmonthly inspections.

Specialists tailor a range of one-on-one services forour members’ comfort and enjoyment. Despite theHang Lung’s Heartland 66 in Wuhan Wins
Gold Award in “Best Mixed-used Development”
Category at MIPIM Asia Awards 2022

impact of COVID-19, the program continued to enroll

Heartland 66, Wuhan, Hang Lung’s first large-scalecustomers through social media channels, including thecommercial development in central China, has won

creation of a sustainability column in each property’s

the Gold Award in the “Best Mixed-used Development”

WeChat account.

category at the MIPIM Asia Awards 2022 – the leading
regional property awards known as the “Oscars of
the Asia Pacific real estate world.” This affirms thecompany’s motto, We Do It Well, and our relentless
pursuit of excellence.

a large number of new quality members. In addition,
we improved our sustainability communication to

In Hong Kong, the hello Hang Lung Malls Rewards
Program continued to expand its member base andgarnered support from 600 tenants across seven malls
and our Central portfolio. Through the Hang Lung Malls
app, we continue to enhance customer experiencethrough close collaboration with our tenants, creating
extraordinary experiences for shoppers with various
tastes and lifestyle needs. Our hello members are able
to enjoy the latest time-limited offers ranging fromshopping discounts and sweet surprises to gifts withpurchases, across the portfolio. Members are also
pampered with access to a variety of unique activities,
such as yoga classes at Peak Galleria, members-onlysales events and previews, and new shop openings.
To meet their increasingly diverse expectations, theprogram offers a thoughtfully curated range of rewards
for redemption, such as Hang Lung e-shopping coupons,

Heartland 66 in Wuhan Wins Gold Award in “Best Mixed-used
Development” Category at MIPIM Asia Awards 2022

parking e-redemption coupons, skincare products,
electronic gadgets and interactive workshops. We also
initiated collaborations with partners from different retail

Enhancing Customer Experience
We continue to enhance customer experience andloyalty throughout our operations in mainland China
and Hong Kong. HOUSE 66 is a nationwide customer

sectors such as entertainment, fashion and beauty,
and home and living to bring exclusive privileges andexperiences to hello members and at the same time,
introduced the program to other shoppers.

relationship management program in mainland China
where members can earn points and enjoy a variety
of bespoke privileges. The program is now active
across ten malls in eight cities. We continue to provide
experiences that “money can’t buy” to build our uniquepositioning in the market. We hosted a series ofsignature annual events for selected top-tier members
across the country, featuring celebrity appearances,
special artiste performances, and exclusive branded
product showcases. We also organized aspirational
lifestyle gatherings, such as gourmet parties hosted
by Michelin-starred chefs, jewelry shows, luxury car
test drive sessions, and yacht parties. At The

Customer-centric “Home to Luxury” event at Plaza 66, Shanghai.
Hang Lung Properties Limited
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Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

AppendicesMeasuring Customer Satisfaction

Written Complaints

Feedback is vital for us to understand customer

Hong Kong

Mainland China

Interim reply within 3
working days

Formal reply within 7
working days

expectations and facilitate continual improvement. Our
ongoing customer survey tracks both the Net Promoter
Score (NPS) and qualitative feedback on customer
touchpoint areas through verbatim analysis. Using
word-by-word feedback from respondents to create a

Formal reply within 14
working days

statistical summary, it provides a clear and quantifiable
picture of customer sentiment. In 2022, we took actions
to address several key customer pain points, notably

Sustainable Marketing

including parking facility management, service staff

Statustraining, and restroom sanitation. In 2022, our overall
NPS score was 61.41, 6.0 points higher than for the same2025 Target

period in 2021.

100% of marketing events evaluated for theirsustainability impacts

In response to customer complaints, standardized
complaint handling procedures are in place to ensure2022 KPI

that customer feedback is addressed in a timely, andLaunch sustainable marketing guideline for allproperties in the first half of 2022

consistent manner. Complaints are logged, managed

On track

Completed

and investigated by dedicated staff within an appropriate
timescale, and with the complainant’s consent, we
would keep close communication with them throughout

In 2022, we launched our sustainable marketing

the investigation process. Various complaint cases are

guideline for all properties. The guideline defined

regularly shared among Service Delivery staff to educate

the principles for sustainable events and strategies

and to strengthen their problem solving and complaint

for arranging a sustainable event, covering marketing

handling skills. Regular service level training is provided

promotion, venue set-up, waste management and green

to ensure we provide the utmost service level.

transportation The guideline also included sustainableprocurement recommendations for marketing products
and materials, and defined metrics (including electricity
consumption and carbon footprint) to measure

Redefining the Meaning ofCustomer Service

an event’s sustainability impact. We measured theFinding a job you love isn’t easy. It is evenharder to find a job that allows you to makebreakthroughs. A Senior Concierge at Kornhill
Plaza in Hong Kong has broken throughtraditional concepts of service and redefinedcustomer experience management by thinking
out of the box.

2022, ‘Home to Luxury’ at Plaza 66 and ‘Gateway tosustainability impact of two major marketing events in
Happiness’ at Grand Gateway 66 as our trial for thesustainable marketing guidelines. Our Home to Luxury
and Gateway to Happiness events were attended by
5,200 and more than 100 people respectively.
The theme of Hang Lung’s annual 66 Brand Campaign
in 2022 was “The Everlasting Pulse of City” to promotesustainability to our customers. In collaboration with
Ant Forest and French artist Amandine Grandcolas, animmersive display named “Green Energy Station” wasinstalled at eight Hang Lung shopping malls on the
Mainland, providing a rich, interactive experience toengage customers in an appreciation of a low-carbon
and environmentally friendly lifestyle. In addition, several

1

Survey conducted during January to December 2022, interviewed close to 24,000 customers in Mainland

104 Hang Lung Properties Limited
Sustainability Report 2022

Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

Hang Lung shopping malls hosted “The Everlasting Pulse

Starting in June 2022, Plaza 66 also launched aof City” Art Exhibition together with Special Olympics

series of sustainability workshops to lead customers

International, to call for more understanding and care forto live a green life through multi-dimensional

special needs groups in society.

interactive experiences.

In 2022, Plaza 66 in Shanghai launched a sustainability

Spring City 66 kicked off a sustainability showcase

campaign themed “Green Circle.” In collaboration

named ‘The Everlasting Pulse of City’ in November

with our tenants and a popular artist, immersive

2022 to introduce stakeholders to our sustainability

art installations and environmental workshops werestrategy, goals and targets, as well as to promoteorganized to lead our customers to experience asustainable lifestyles and the values of sustainablegreen and sustainable lifestyle. In collaboration witheducation, sustainable dining, and sustainable fashion.

tenants, we organized a “Green Passport” check-in

We also implemented several recycling programs toactivity. Customers could browse the brands’ range ofengage our customers in a more sustainable lifestyle.

sustainable products online and collect stamps in theirMore information is available in the Waste andgreen passport at designated shops or installations

Circularity section.

during their visit, to win prizes.

Protecting Customer Data Privacy
Our business involves many direct and indirect dailytransactions with our tenants and customers. The Group
ensures that its operations comply with local laws andregulations regarding customer privacy. Our handlingof the personal data of our tenants and customers inHong Kong is governed by our Privacy Statement toensure it is in compliance with the city’s Personal Data
(Privacy) Ordinance. We also have policies in place forour operations in mainland China to comply with relevant
personal data protection legislation on the Mainland.
With the China Personal Information Protection Law(PIPL) effective on November 1, 2021, the terms andGreen Circle Rooftop Market inPlaza 66
Plaza 66 in Shanghai organized its first Green
Circle Rooftop Market at the Rooftop Garden
located on the sixth floor during the MidAutumn Festival. In collaboration with a numberof sustainable brands, the Rooftop Market
ingeniously integrated outdoor lifestyle, art andculture, as well as dining and games, leading
our customers to explore the possibilities ofurban development and sustainability, and to
experience a green and sustainable lifestyle.

conditions and privacy policy for our HOUSE 66 program
were updated accordingly for compliance.
Our ERM Working Group is responsible for monitoring
any potential breach of relevant laws and regulations,and there were no significant complaints received
concerning breaches of customer privacy and losses ofcustomer data during the reporting period.

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Introduction

Our
Sustainability
Strategy

Next StepsIn recent years we have made exciting inroads into
collaboration with many kinds of stakeholders acrossour value chain. Building on our achievements todate, we are working to develop a more systematic
approach to ESG engagement and collaboration with
our stakeholders. We are developing a comprehensive
partnership program that will include key initiatives
tailored to various types of tenants. We are also
developing a program to partner with our mallcustomers to advance sustainability and accelerate
progress. With regard to suppliers, we will make efforts
more systematically – through technology, broader
engagement and outreach and pilot projects – toimprove data quality and quantity, source lower carbon
materials, and enhance healthy, safety and wellbeing,
among other initiatives. Lastly, we will continue tocollaborate with financial institutions to develop moreinnovative transactions in sustainable finance.

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ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

AppendicesAppendix

Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

Appendix 1 - Key Sustainability Trends
Key Trends and Synopsis

Relevance to Our BusinessClimate risks
Increased extreme climate events, such as heatwaves, droughts andfloods caused by climate change, could be seen on every continent in
2022 and have already affected billions of people around the world.
The World Economic Forum points out that the lack of deep,
concerted progress on climate mitigation targets has exposed thedivergence between what is scientifically necessary to achieve netzero and what is politically feasible. The competing demands for
public and private-sector resources to address other crises will risk to
reduce the speed and scale of climate mitigation efforts. For example,
the economic aftermath of COVID-19 and the war in Ukraine andthe resulting energy crisis have ushered in high inflation levels, whichmight induce an era of low growth and low investment over the next
two years.

According to the International Energy Agency(IEA), the building and construction sector
accounts for nearly 40% of energy and processrelated greenhouse gases 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 andcity levels nationwide.
Decarbonization is both a matter of strategic
importance for our business – an opportunity ifdone well, a risk if not – and the right thing to do
for the planet. We published our net-zero targets
validated by SBTi in January 2023 to help guideour emissions reduction investments and efforts
across our operations and value chain. In addition,
to meet with expectations from accountability
to investors and other stakeholders, in 2019 we
adopted TCFD’s recommendations in disclosing
how we govern and manage climate-relatedrisks and opportunities, and we are committed
to improving the quality of our climate-related
disclosures annually.
Please read more about our work in Climate
Resilience and Appendix 8 (TCFD).

Productive employment and decent work for all
Productive employment and decent work for all are crucial tosocioeconomic development and stability. Quality of life and social
mobility might be negatively impacted by structural deteriorationof standards of work or work prospects arising from rising
unemployment and underemployment, erosion of workers’ rights
amid economic downturn and restructuring, job displacement due
to automation, geographical or industry mismatches between labor
supply and demand, stagnating wages amid a global cost-of-living
crisis. In addition, a continued shortage in 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 thrivein an increasingly complex market environment
hinges on how well we are able to attract, retainand develop the right talent. Employee attraction,
retention and development are among the top
issues considered to be essential to our financial
performance and longer-term enterprise value.
A strategic approach to plan, manage and develop
the composition and competence of our workforce
amid the increasingly rapid pace of technologicaldevelopment and changing market environment isessential to remain competitive. Our employment
and procurement policies and norms have a direct
impact on the scope for productive employment
and the potential for decent work for our
employees and suppliers.
Please read more about our work in Wellbeing.

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Introduction

Our
Sustainability
Strategy

ClimateResilience

Key Trends and Synopsis

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

Relevance to Our Business

Biodiversity
Human activities have profoundly altered most terrestrial ecosystems.
As reported by the United Nations, 10 million hectares offorest are being destroyed each year and around 40,000 species
are documented to be at risk of 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
are threatening marine species and negatively affecting marine
ecosystem services.
The World Economic Forum points out that over half of the world’s
economic output is estimated to be dependent on nature to someextent. Biodiversity and climate change are inextricably linked –a failure in one sphere will cascade into the other. The collapseof ecosystems would have far-reaching economic and societal
consequences. These include increased occurrence of diseases,
a fall in crop yields and nutritional value, growing water stressexacerbating potentially violent conflict, loss of livelihoods dependent
on food systems and nature-based services like pollination, and evermore dramatic floods, sea-level rises and erosion from degradationof natural flood protection systems like water meadows andcoastal mangroves.

Property development and operations can havesignificant negative impacts on the environment
through pollution, land use changes, deforestationand destruction of natural habitats. To protect
natural habitats and biodiversity, we aim tominimize the environmental impacts of ourdevelopments through responsible planningand design, and responsible procurement
practices favoring products and raw materials
from sustainable sources and with lower
ecological footprints.
Financial institutions are paying attention tobiodiversity loss. The Taskforce on Nature-Related
Financial Disclosures (TNFD), established in
2021, will be publishing its recommendations in
September 2023, providing a global framework fororganizations to report on risks from biodiversity
loss and ecosystem degradation. We will look into
taking steps to disclose our nature-related risks inline with the TNFD recommendations.
Please read more about our work in
Resource Management.

Environmental pollution and waste
Environmental pollution is highly connected to the degradationof ecosystems and biodiversity loss and affects human health.
According to the United Nations, ambient air pollution from power
generation, traffic, industry, waste burning and residential fuelcombustion 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, over-extraction andcontamination of freshwater supplies, and poor management offreshwater and wastewater.
Unsustainable patterns of consumption and production are root
causes of the triple planetary crises of climate change, biodiversity
loss and environmental pollution. The United Nations calls forgovernments, enterprises and all citizens to work together to improve
resource efficiency, reduce waste and pollution, and shape a newcircular economy.

Public awareness and regulatory requirements inHong Kong and other cities in Mainland China
concerning waste management are increasing. As
an owner and operator of commercial real estatewith office, retail and food and beverage tenants,
providing adequate facilities and implementing
robust programs to support our tenants andvisitors in waste reduction and recycling practices
are rising priorities for us.
In addition, by starting to apply circular principles
in procurement decisions and the design,
construction and operations of buildings, we
can reduce operational and embodied carbon
emissions and other types of pollution, as well as
reduce our dependency on virgin raw materials,
reducing our planetary impact and making us
more resilient to potential supply chain disruptions.
Please read more about our work in Resource
Management and Sustainable Transactions.

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Introduction

Our
Sustainability
Strategy

ClimateResilience

Key Trends and Synopsis

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

Relevance to Our Business

The health and wellbeing
The health and wellbeing of people globally were gravely affected by
the COVID-19 pandemic. The pandemic disrupted essential healthservices, triggered an increase in the prevalence of anxiety anddepression, lowered global life expectancy, and is said to 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 climatedriven nutritional and infectious diseases. Mental health may also be
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 andwidespread infectious disease outbreaks amidst a background ofchronic diseases over the next decade risks pushing exhausted
healthcare systems to the brink of failure around the world.
As the disease burden grows, the population ages in many cities
in developed economies and innovation widens the scope of what
medicine can treat, inexorable demand for healthcare is runningup against chronic capacity challenges in the healthcare systems.
The World Health Organization (WHO) predicts a global shortfall of
15 million health workers by 2030.
Some health systems are seeing productivity declines as experienced
employees leave due to exhaustion, burnout and concerns about staff
and patient safety. Skills and infrastructure gaps undermine capacity
further as staff become overwhelmed by challenges they are notadequately equipped or supported to solve, leading to more strikes
over pay and staffing levels.

As the World Green Building Council (WGBC)
has noted, there are few issues relating tohuman health, wellbeing and quality of life thatare not impacted, directly or indirectly, by theattributes of our built environment. The WGBC
introduced a Health and Wellbeing Framework in
November 2020, which outlines principles for ahealthy, sustainable built environment, providing aframework to guide the building and construction
sector in addressing its responsibility regarding thequality of our indoor environment, our mental andphysical health, and influences on our behavior. It
also emphasizes the importance of embracing thepeople and environment involved along all stagesof the building lifecycle.
The building and construction sector, including
Hang Lung, can play an active role in protecting
and enhancing the health and safety of its
stakeholders – from protecting the health andsafety of construction workers, to preventing
illness and promoting wellness for all, tominimizing adverse impacts on the environment
through how we source materials, construct andoperate our buildings.
Please read more about our work in Wellbeing andSustainable Transactions.

Geo-economic confrontation
Geo-economic confrontations are creating significant headwinds
for global cooperation on important agenda topics for sustainable
development, including climate change mitigation and adaptation,technology development and energy transition, innovating circularsystems of global supplies and waste management.

Geo-economic confrontation could entail supply
chain disruption, instabilities in the policy
and socioeconomic environment for businesses,
and uncertainties clouding business andinvestment decisions.

The World Economic Forum notes that economic warfare, withincreasing clashes between global powers, will reduce global
economic output. A longer-term rise in inefficient production, supply
chain disruption and rising prices are becoming more likely. Food,energy and security risks are also expected to be amplified.

A rigorous approach to foresight and preparedness
is vital to bolster business resilience to longerterm risks and chart a path forward forsustainable development.

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Please read more about our efforts to improve ourresource productivity in Resource Management
and in building a more resilient supply chain in
Sustainable Transactions.

Introduction

Our
Sustainability
Strategy

ClimateResilience

Key Trends and Synopsis

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

Relevance to Our Business

Diversity and inclusion
Diversity and inclusion has received increasing attention as a global
social and economic issue. Actual or perceived inequalities inopportunities will erode social cohesion and fracture communities
leading to declining social stability, individual and collective wellbeing and economic productivity. Digital inequality is a fast-emerging
form of exclusion. The rapid pace of digitalization and technologicaladvancement is likely to widen unequal access to resources andopportunities for education and livelihood.
The International Labour Organization notes that there are
significant correlations between greater diversity and inclusion andimprovements in employee and enterprise performance. A highlevel of diversity and inclusion at workplace can lower costs
such as turnover and sickness absence, and add value throughhigher levels of employee productivity, creativity and engagement
as well as innovation and improved decision making. There isalso growing pressure for enterprises to drive actions on diversity
and inclusion, including from employees, prospective employees,
investors, customers, and national laws, policies and programmes.
With regard to gender equality, the United Nations reports that theworld is not on track to achieve gender equality by 2030. Womenaccounted 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 toissuers, aiming to promote gender diversity at the board level andgender ratios in the workforce.

As studies have shown, high levels of diversity andinclusion are associated with greater innovation,
productivity and performance, talent recruitment
and retention, and workforce well-being.
Through policy and programs implemented across
our workplaces, we endeavor to foster an inclusive
workplace. We also recognize the valuable
contribution of all employees, regardless ofgender, age, disability, race, or marital status, andbelieve that an inclusive workplace will aid talent
recruitment and boost employee satisfaction
and productivity.
In addition, we strive to work with our stakeholders
to foster equality and diversity across ourcommunity and value chain. Inequality erodessocial cohesion, diminishes human potential,
and might lead to declining social stability
and economic development. We also have acommunity program to cultivate future womenleaders in both mainland China and Hong Kong.
Please read more about our work in Wellbeing.

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Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

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 2022.

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 Low 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

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Partner

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

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)

Agency for Volunteer Service

Group Member

Asia Society

Asia Corporate Member

Business and Professionals Federation ofHong Kong

Corporate Member

China Real Estate Developers andInvestors Association

Executive Member

Employers' Federation of Hong Kong

MemberHong 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

Hong Kong Quality Assurance Agency (HKQAA)

Organisation Recognition Program 2022 - Gold Seal For BusinessResilience & Community Contribution- Gala Place, Hollywood Plaza, Kornhill Plaza, Peak Galleria, Amoy Plaza,
Fashion Walk, Grand Plaza

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Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

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

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Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

Appendix 3 – Strategic ESG KPIs
For 2022
2022 KPIs

Results

Climate Resilience
Develop a draft portfolio-wide 2025 GHG reduction
action plan.

Prepared draft portfolio-wide climate resilience plan for 2023-2025
including areas related to Scopes 1, 2 and 3 emissions, andclimate adaptation.

All properties demonstrate best efforts towards
portfolio-wide 8% kWh/m2 reduction compared
to 2018.

Achieved a 16.4% reduction in electricity intensity in 2022,
compared to 2018.

Direct procurement of renewables for at least one
mainland property.

Procured 100% renewable electricity at Spring City 66, Kunmingand Parc 66, Jinan.

Study regulatory trends for EVs and develop a plan
to expand EV parking spaces for Mainland and HK.

Reviewed our current EV charging provisions and conducted astudy of EV regulations in both Hong Kong and mainland China.

Develop a consistent methodology for collection ofdata and accounting of embodied carbon.

Updated calculation and accounting methodology for embodied
carbon emissions and established tracking template for all
development projects in Hong Kong and mainland China.

Develop a plan for reduction of embodied carbon
from bamboo, concrete, rebar, insulation, glazing
and finish materials and through integrated design
on future projects.

Prepared draft portfolio-wide climate resilience plan for 2023-2025
including areas related to Scope 3 emissions reduction.

Work with a major strategic tenant to pilot aplan to reduce GHG intensity from the tenant’s
electricity consumption.

Launched a sustainability partnership with LVMH, conducted aReal Estate & Climate Forum with hundreds of participants, andformulated actions with LVMH to reduce electricity consumption
from its stores in our properties.

Conduct technical analysis for climate adaptation infour properties on Mainland and ten properties inHong Kong.

Conducted technical analysis for four properties on the Mainlandand eleven properties in Hong Kong.

Resource Management
Pilot with a relevant organization to identify
innovative ways to reduce construction waste andincrease recycling.

Started a two-year collaboration on decarbonization, including
waste concrete recycling, with an innovative start-up company.

Examine the technical and economic feasibilityof increasing the use of recycled, reused and/or
bio-based materials to support circularity on a
Mainland project.

Identified five materials in the feasibility study that can beincorporated into design for circular construction.

Conduct at least three water audits or pilots on
Mainland to support major improvements in water.

Initiated three water reduction pilots including faucet flow
restrictors replacements, urinal flush rate adjustments, andwater recycling.

Develop a portfolio-wide water reduction plan for theperiod 2023-25.

Prepared draft portfolio-wide resource management plan for2023-2025, including circularity and water reduction as one of the
focus areas.

Implement at least five waste reduction andrecycling measures across the portfolio.

Initiated five waste management or reduction measures including
improved waste data collection, streamlined waste handlingprocedure, e-waste recycling, used clothes recycling, and officefurniture recycling.
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Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

2022 KPIs

Results

Develop a portfolio-wide waste reduction plan forthe period 2023-25

Prepared draft portfolio-wide resource management plan for2023-2025 including key plans related to circularity andwaste reduction.

AppendicesWellbeing
Implement key employee engagement measures
to strengthen manager-employee connections, acaring culture, learning and development, and worklife balance.

Implemented follow-up measures on Hang Lung Employee
Engagement Survey 2021 results at corporate anddepartmental levels.

Conduct D&I training and workshops and strengthen
anti-discrimination policies and procedures.

Conducted D&I training for all employees andmanagers and strengthened employment practices, includinginterview procedures.

Conduct an audit of our corporate practices andformulate recommendations.

Conducted a third party comprehensive assessment of ourcorporate practices in terms of disability inclusion and obtained
feedback report with recommendations; now studying potential
implementation of key recommendations.

Develop a health and wellness program including
guidance and activities for employees.

Established Wellness@HL Program to improve employee healthand wellbeing in 2022.

Conduct a feasibility study to obtain the China
Healthy Building Label or equivalent in at least
one property.

Identified one property at which it is feasible to obtain the China
Healthy Building Label.

Develop and deliver priority ESG training to specificdepartments on major sustainability priorities.

Delivered 672 hours of priority ESG training to specific departments
in 2022.

Develop a plan to rollout key safety practices from
Service Delivery Safety Management Committee
and elsewhere.

Enhanced our occupational health and safety management system
for the property management of our Hong Kong portfolio to meetthe international standard ISO 45001.

Study smart technology options and define practical
approaches for enhancing construction site andemployee safety.

Identified at least five technology options for enhancing
construction site and employee safety, with consideration of
cost implications.

Work with youth to organize at least one highprofile community wellbeing event with measurable
impacts on the community.

Launched the Hang Lung Future Women Leaders Program in Hong
Kong and Shanghai, benefitting 200 female university students
across the nation.

Sustainable Transactions
Examine technology options, identify parametersand define process elements of digital platform.

Identified technology options, parameters and potential scope ofdigital platform, will be further refined in 2023.

Launch sustainable marketing guideline forall properties.

Launched sustainable marketing guidelines and measured theelectricity consumption and carbon footprint of two major
marketing events in mainland China.

Pilot implementation of sustainability leases with
our Shanghai office tenants.

Implemented ESG lease amendments across Mainland malls
and offices.

35% of total debts and available facilities fromsustainable finance by the end of 2022.

46% of total debts and available facilities from sustainable finance.

Develop ESG due diligence guideline.

Completed the ESG due diligence checklist for asset acquisitions
applicable to all Mainland projects.

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Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

AppendicesFor 2023
2025 Targets

2023 KPIs

Climate Resilience
40% cumulative reduction in GHG intensity (kgCO2e/m2) relative to 2018

Meet or exceed 30% 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

18% of our mainland China portfolio electricity demand fromrenewable energy

Wherever feasible exceed local regulations forthe provision of parking spaces installed with EV
charging facilities across our portfolio

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

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

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 with themethodology of our 2025 embodied carbon target (i.e.,comparing baseline design with a functionally equivalent
proposed design).

15% reduction in GHG intensity (kg CO2e/m2) fromtenants’ electricity consumption for our properties inmainland China, relative to 2018

Work with a major tenant to implement a plan to reduce
GHG intensity from the tenant’s electricity consumption acrossmainland China.

Complete technical analysis for climate adaptation
measures for all properties

Conduct technical analysis for climate adaptation for anotherfour properties in mainland China, 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

Conduct a pilot research study to improve construction waste(e.g., broken concrete) recycling and circularity in one Mainlanddevelopment project.

Demonstrate best efforts to maximize the use ofrecycled, reused and bio-based materials on all
new projects

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

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

Identify highest priority water reduction measures (considering
impact and feasibility) and implement first iteration of the2023-2025 water reduction plan.

70% of operational waste diverted from landfill

Standardize waste data consolidation method and review
and streamline waste handling procedures for all Hong
Kong properties.
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.
Identify highest priority waste reduction measures (considering
impact and feasibility) and implement first iteration of the2023-2025 waste reduction plan.

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Introduction

Our
Sustainability
Strategy2025 Targets

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices2023 KPIs

Wellbeing
Achieve an employee engagement rating greaterthan or equal to the 75th percentile

Coordinate a process for each department to develop andimplement three employee engagement measures.

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

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

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

Develop and implement a disability inclusion action plan basedon 2022 assessment results.

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

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

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

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

Deliver priority ESG training targeted to all
departments and seniority levels

Develop and deliver at least 500 hours of ESG training
including at least 100 hours focused on delivering climaterelated competencies.

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 inmainland China and Hong Kong.

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

Deliver at least 2,200 mentorship hours and 4,400 leadershiptraining hours to selected female university students in Hong
Kong and mainland China.

Sustainable Transactions
Embrace technology to build a robust digitalplatform for assessing suppliers’ ESG performance

Continue to develop and refine ways of assessing suppliers’ ESG
performance, and continue to develop effective digital solutions
to support such assessments.

100% of marketing events evaluated for theirsustainability impacts

Evaluate the sustainability impacts of 100% of centrally led
marketing events.

100% of leases incorporate sustainability provisions

Incorporate sustainability provisions in fitout manuals for all
Hong Kong projects.

50% of total debts and available facilities fromsustainable finance

50% of total debts and available facilities from sustainablefinance by the end of 2023.

100% of potential asset acquisitions include ESG
due diligence

Improve the ESG due diligence guideline for potential asset
acquisitions in Hong Kong.

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Management

Wellbeing

Sustainable
Transactions

Appendices

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)

EnergyExcellentGrand Plaza

Shopping Mall

BEAM Plus v2.0 Existing Building(Selective scheme)

EnergyExcellent

Office Tower 2

BEAM Plus v2.0 Existing Building(Selective scheme)

EnergyExcellent

Entire Property

LEED BD+C: Homes v3 2008Gold

23-39 Blue Pool Road

Projects under Development (Pre-certification)
Property

Scope

Type of Certification

Rating228 Electric Road Redevelopment

Office Tower

LEED BD+C: Core and Shell v4

Platinum

WELL Core v2

Gold

BEAM Plus NB v1.2

Gold

The Aperture

Residential Tower

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-

Grand Gateway 66, Shanghai

Palace 66, Shenyang

Hang Lung Properties Limited
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119

Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Property

Scope

Type of Certification

RatingForum 66, Shenyang

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-

Parc 66, Jinan

Center 66 (Phase 1), Wuxi

Riverside 66, Tianjin

Olympia 66, Dalian

Spring City 66, Kunming

Heartland 66, Wuhan

120 Hang Lung Properties Limited
Sustainability Report 2022

AppendicesIntroduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

Projects under Development (Pre-certification)
Property

Scope

Type of Certification

RatingCenter 66 (Phase 2), Wuxi

Office Tower 1

LEED BD+C: Core and Shell v4

Gold

Office Tower 2

LEED BD+C: Core and Shell v4

Gold

Office Tower 3

LEED BD+C: Core and Shell v4Gold

Spring 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
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121

Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

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

122 Hang Lung Properties Limited
Sustainability Report 2022

AppendicesIntroduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

Scope 3 Reporting Boundary
Scope 3 reporting is based on estimated emissions reflecting the methodologies, and boundaries and sources outlinedin the table below.

No. Scope 3 Category

Applicability

Methodology / Justificationfor exclusion

Emission factor
data source

1Yes

1. Extraction, production andtransportation of goods andservices purchased or acquired byHang Lung Properties (excluding
embodied carbon)

1. Emissions factors for
procurement spending (excluding
embodied carbon) follow US
Environmentally-Extended InputOutput (USEEIO) Models

2. Embodied carbon from development
projects. The calculation follows
Life Cycle Assessment (LCA)
modelling analysis.

2. Emissions factors for embodied
carbon emissions calculations
follow the Ecoinvent databaseand GB/T 51366-2019
Standard for Building Carbon
Emission Calculation

Purchased goods
and services

2

Capital goods

Yes

The emissions are mainly from capital
goods expenditure including extraction,
production and transportation of goods
with high value purchased or acquired byHang Lung Properties

Emissions factors from the
US Environmentally-Extended InputOutput (USEEIO) Models

3

Fuel and energy
related activities

Yes

Extraction, production andtransportation of fuels and energy
purchased or acquired by Hang Lung
Properties, not already accounted for inscope 1 or scope 2

Regional scope 3 emission factors.
Where regional data is not available,
the UK Department for Environment
Food and Rural Affairs (Defra) and the
Ecoinvent database are adopted asproxy values

4

Upstreamtransportation& distribution

No

The transportation and distribution
calculation related to building products
and materials have been reported
in Category 1 from Life Cycle
Assessment Reporting

5

Waste generated
in operations

Yes

The calculation is based on disposal
and treatment of waste generated
from operations.

Emissions factors from the
Ecoinvent database

6

Business travel

Yes

Business air travel related emissions areprovided by our travel agency

Emissions factors are provided bytravel agency

Non-air travel including taxis, cars or
public transportation are excluded due
to limited availability of reliable data
7

EmployeecommutingYes

Emissions related to transportation of
all employees between their homes
and their worksites. Online survey was
carried out to all staff to collectaccurate data

Emissions factors from the UK
Department for Environment Foodand Rural Affairs (Defra)Hang Lung Properties Limited
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123

Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

No. Scope 3 Category

Applicability

Methodology / Justificationfor exclusion

8

Upstreamleased assets

No

Emissions related to operation of assets
leased by the Group. Our businessmodel involves only the leasing ofproperties to customers. Therefore,
we don't have emissions in thereporting year.

9

Downstream
transportation& distribution

No

Hang Lung Properties’ business model
does not involve the distribution of
raw materials or finished products toend customers

10

Processing ofsold products

No

There is no further processing of soldproducts by Hang Lung Properties.

Wellbeing

Sustainable
Transactions

Appendices

Emission factor
data source

Refurbishment activities by third
party owners of any sold products
are excluded; data are unavailable
and unreliable and therefore difficult
to quantify
11

Use ofsold products

No

There is no further processing of soldproducts by Hang Lung Properties. Other
activities to involving sold products by
third parties are excluded due to the data
unavailability and reliability

12End-of-life treatmentof sold products

Yes

Waste disposal and treatment of
products sold by Hang Lung Properties
at the end of their life in thereporting year

Emissions factors from the
Ecoinvent database

13

Downstream
leased assets

Yes

Operation of assets owned by Hang
Lung Properties and leased to otherentities. This category of data includes
electricity and energy usage from ourtenants’ operations.

For mainland China, we adopted
the National Grid Emission Factors
from the Ministry of Ecology andEnvironment of the People’s Republicof China was adopted.

When there are no actual data received
from tenants, emissions are calculated
based on the total leased area of tenant
space by a local appropriate energy
use benchmark

For Hong Kong, local utility
companies’ emissions factors andgovernment’s specific energy use
benchmarks were adopted asproxy estimations

14

Franchises

No

Not applicable to Hang Lung
Properties’ operations

15

Investments

Yes

Operation of investments (including
equity and debt investment and project
finance) by Hang Lung Properties in thereporting year

124 Hang Lung Properties Limited
Sustainability Report 2022

Emissions factors from the
US Environmentally-Extended InputOutput (USEEIO) Models

Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

Economic
HK: Hong Kong, MC: Mainland China

Indicator

Unit

HK

MC

Total

2020

2021

2022

2020

2021

2022

2020

2021

2022

3,696

3,382

3,595

5,277

6,939

6,752

8,973

10,321

10,347

N/A

N/A

N/A

N/A

N/A

N/A

63

73

63

Operating costs (1)

N/A

N/A

N/A

N/A

N/A

N/A

1,726

2,040

2,134

Employee wages and benefits

N/A

N/A

N/A

N/A

N/A

N/A

1,559

1,793

1,855

Total borrowing costs

N/A

N/A

N/A

N/A

N/A

N/A

1,470

1,487

1,512

N/A

N/A

N/A

N/A

N/A

N/A

3,418

3,463

3,509

N/A

N/A

N/A

N/A

N/A

N/A

369

465

510

Income taxes to government

396

305

349

797

1,041

986

1,193

1,346

1,335

Community investments

N/A

N/A

N/A

N/A

N/A

N/A

25

17

62

Number

1

1

1

9

9

9

10

10

10

HK$
million

N/A

N/A

N/A

N/A

N/A

N/A

-724

-217

-507

Economic value generated
Revenue (including property
sales revenue)
Interest IncomeHK$millionEconomic value distributed

Dividends paid
Dividends paid to noncontrolling interests

Number of cities of operationHK$
millionEconomic value retained or invested
Economic value retained or invested

Notes:(1) Operating costs exclude: (a) employee wages and benefits; and (b)community investments.

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Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

Environmental
HK: Hong Kong MC: mainland China

Indicator

Unit

HK
2020

2021

MC

Total

2022

2020

2021

2022

2020

2021

2022

Greenhouse Gas (GHG) Emissions (1), (2), (3), (4), (5), (6), (7), (8), (9), (10), (11)Total GHG Emissions (Scope 1 & 2)
Total emissions (Scope 1 and
2) - location-based (12)TonnesCO2e

42,06040,23538,636

119,335

136,388

149,358

161,395

176,623

187,994

Carbon emission intensity(Scope 1 and 2) - locationbasedkg
CO2e/m2/
year

58.2

55.6

53.4

46.7

43.8

41.2

49.3

46.0

43.2

Total emissions (Scope 1 and
2) - market based (13)TonnesCO2e

42,06040,23538,636

119,335

136,388

134,127

161,395

176,623

172,763

Carbon emission intensity(Scope 1 and 2) - market-basedkg
CO2e/m2/
year

58.2

55.6

53.4

46.7

43.8

37.0

49.3

46.0

39.7

GHG Emissions (Scope 1 & 2) - building operations only
Total emissions (Scope 1 and
2) - location-based (12)TonnesCO2e42,01940,18938,585

119,245

136,279

149,259

161,265

176,469

187,844

Carbon emission intensity(Scope 1 and 2) - locationbased

TonnesCO2e/m2/
year

0.05820.0556

0.05340.04670.04380.04120.04930.04600.0432

Total emissions (Scope 1 and
2) - market based (13)TonnesCO2e42,01940,18938,585

119,245

136,279

134,028

161,265

176,469

172,614

Carbon emission intensity(Scope 1 and 2) - marketbased (14)TonnesCO2e/m2/
year

0.05820.0556

0.05340.04670.04380.03700.04930.04600.0397

GHG Emissions - by scope and type
Gross Direct emission(Scope 1)

Tonnes
CO2e

654

255

51.2

2,497

2,381

3,890

3,151

2,636

3,942

Building operation

Tonnes
CO2e

613

209

0.61

2,407

2,272

3,791

3,020

2,481

3,792

Company vehicles andvessels (15)Tonnes
CO2e

41

46

50.6

90

109

99

131

155

150

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Sustainability Report 2022

Introduction

Indicator

Unit

Gross Indirect emission (Scope2) - location-based (12)Our
Sustainability
Strategy

ClimateResilience

Resource
Management

HK

Wellbeing

Sustainable
Transactions

MC

Appendices

Total

2020

2021

2022

2020

2021

2022

2020

2021

2022

TonnesCO2e41,40639,98038,585

116,838

134,008

145,468

158,244

173,988

184,053

Building operation

TonnesCO2e41,40639,98038,585

116,838

134,008

145,468

158,244

173,988

184,053

Gross Indirect emission (Scope2) - market-based (13)TonnesCO2e41,40639,98038,585

116,838

134,008130,237

158,244

173,988

168,822

Building operation

TonnesCO2e41,40639,98038,585

116,838

134,008130,237

158,244

173,988

168,822

Gross Indirect emission(Scope 3)

TonnesCO2e

77,04098,362

107,112263,626

362,647

336,261

340,666

461,009443,372

Purchased goods & services(Cat 1)

TonnesCO2e13,76629,39031,843

152,869

242,633

219,950

166,636

272,024

251,793

Capital goods (Cat 2)

Tonnes
CO2e

2,355

1,392

1,096

640

489

1,254

2,995

1,881

2,350

Fuel and energy related
activities (Cat 3)

Tonnes
CO2e

1,890

1,536

1,409

14,39914,393

15,11816,28915,928

16,527

Waste generated in operations(Cat 5)TonnesCO2e

4,315

11,436

13,34014,011

14,593

12,921

18,32626,02926,262Business travel (Cat 6)

Tonnes
CO2e

85

51

218

278

208

224

363

259

442

Employee commuting (Cat 7)

Tonnes
CO2e

556

512

455

1,223

1,129

1,061

1778.9

1,641

1,516

End-of-life treatment of soldproducts (Cat 12)

Tonnes
CO2e

0

0

62

0

0

0

0

0

62

Downstream leased assets(Cat 13)

TonnesCO2e39,49941,05843,29380,207

89,20285,732

119,706

130,261

129,026

Investments (Cat 15)

TonnesCO2e14,573

12,986

15,39500

014,573

12,986

15,395

Energy Consumed and Generated (1), (2), (3), (10)Total Energy
Total energy consumed

GJ

245,682

255,662

247,197

794,040

961,621

1,085,672

1,039,722

1,217,283

1,332,869

Total energy intensity

MJ/m2/
year

340

354

342

311

309

299

318

317

306

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Introduction

Indicator

Unit

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

HK

Wellbeing

Sustainable
Transactions

MC

Appendices

Total

2020

2021

2022

2020

2021

2022

2020

2021

2022

Total natural gas

0

0

0

2,226

2,248

45,386

2,226

2,248

45,386

Total liquid fuels

566

602

659

1,294

1,615

1,493

1,860

2,217

2,153

380

369

398

1,251

1,339

1,218

1,631

1,708

1,616

181

224

253

0

0

0

181

224

253

5

9

8

43

276

275

48

285

283

Direct Energy Consumed by typeGas and Liquid Fuels

Petrol (for vehicles)
Diesel (for vehicles
and vessels)

GJ

Diesel (foremergency generators)
Indirect Energy Consumed by type
Electricity (16)Total electricity consumed

GJ

245,116

255,060

246,537

594,757

760,880

832,667

839,873

1,015,940

1,079,204

Total electricity consumed

MWh68,08870,85068,483

165,210211,356

231,296

233,298

282,206

299,779

Electricity purchased from
non-renewable source

MWh68,08870,85068,483

164,567

210,736

203,931

232,654281,586

272,414

Electricity purchased fromrenewable source

MWh

0

0

0

0

0

26,7070026,707

Electricity self-generated(solar PV) and consumed

MWh

N/A

N/A

N/A

644

619

659

644

619

659

Electricity self-generated(solar PV) and exported (forFeed-in Tariff)

MWh

N/A

N/A

18

N/A

N/A

N/A

N/A

N/A

18

kWh/m2/
year

94.28

98.11

94.83

64.51

67.67

63.60

71.08

73.40

68.78

Hot water

GJ

N/A

N/A

N/A

165,961

164,826

175,483

165,961

164,826

175,483

Steam

GJ

N/A

N/A

N/A

29,802

32,05230,64229,802

32,05230,642

Total municipal water000 m3

N/A

484

469

1,358

1,433

1,641

1,358

1,917

2,110

Water intensity (18)m3/m2/
year

N/A

0.67

0.65

0.55

0.46

0.45

N/A

0.50

0.49

Water recycled (19)

m3

N/A

N/A

N/A

N/A

N/A

46,986

N/A

N/A

46,986

Electricity intensity ofbuildings in use
District Heating

Water Consumed (1), (2), (3), (17)Total Water Consumed

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Indicator

Unit

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

HK

Wellbeing

Sustainable
Transactions

MC

Appendices

Total

2020

2021

2022

2020

2021

2022

2020

2021

2022

Waste Disposal and Recycling (1), (2), (3), (20)Total Non-Hazardous Waste
Total waste collected

tonnes

7,428

19,10422,05327,90532,76329,95535,33351,86752,008

Total waste diverted fromlandfill (21)tonnes

482

464

331

312

7,053

28,894794

7,518

29,225

Diversion rate (from landfill)

%

6%

2%

2%

1%

22%

96%

2%

14%

56%

kg/m2/
year

10.3

26.5

30.5

10.9

10.5

8.3

10.8

13.5

12.0

kg

6,036

1,956

576

320

472

533

6,356

2,428

1,109

kg/m2/
year

0.00840.00270.00080.00010.00020.00010.00190.00060.0003tonnes

6,946

18,63921,722

27,59325,71021,88634,53944,34943,608

kg

6,036

1,956

576

320

472

533

6,356

2,428

1,109

Food waste (22)kg

371,148

321,494

213,053

N/A

6,822,895

7,939,128

371,148

7,144,389

8,152,181

Paper

kg

104,152

125,171

103,148

209,150

107,265

76,598313,302

232,436

179,746

Metal

kg

810

2,926

2,865

37,73563,85919,66938,54566,78522,534

Plastics

kg

727

1,053

1,247

25,06523,338

16,61325,792

24,391

17,860

Glass

kg

4,875

13,816

10,90040,47535,953

12,18245,35049,76923,082

Textiles / Clothing

kg

N/A

N/A

123

N/A

N/A

5,000

N/A

N/A

5,123

pieces

N/A

N/A

88

N/A

N/A

0

N/A

N/A

88

Gross Floor Aream2

554,896554,896554,8962,034,027

2,034,027

2,362,639

2,588,923

2,588,923

2,917,535

Construction Floor Aream2

722,185

722,185

722,185

2,551,049

3,114,114

3,626,621

3,273,234

3,836,299

4,348,806

Waste intensity
Total Hazardous Waste
Total waste collected
Waste intensity

Waste Disposed or Diverted - by type
Municipal solid waste- Disposed
Hazardous waste - Disposed
Recycled waste

WEEE
Floor Area

Notes:(1) The coverage of energy, greenhouse gas emissions, material, water
and waste data in 2020 includes all 24 properties in Hong Kongand eight properties in mainland China (Plaza 66, Grand Gateway
66, Palace 66, Parc 66 and Forum 66 (Mall and Office Tower ofPhase 1), Center 66 (Mall and Office Tower 1 of Phase 1), Riverside
66 and Olympia 66). Spring City 66 and Center 66 Office Tower 2
are excluded as they opened in August 2019 and September 2019respectively and operational data in 2020 is unrepresentable due tothe pandemic situation in 2020.
(2)

The coverage of energy, greenhouse gas emissions, material, water
and waste data in 2021 includes 24 properties in Hong Kong andnine 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 and Spring City 66 (Mall and Office Tower 1). Heartland
66 is excluded as it opened in mid-2021.

(3)

The coverage of energy, greenhouse gas emissions, material, water
and waste data in 2022 includes 24 properties in Hong Kong and ten
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, Spring City 66 (Mall and Office Tower 1), and Heartland
66. For scope 3 emissions, the data boundary also covers projects
in Hong Kong and mainland China, including 228 Electric Road
Redevelopment, The Aperture, Center 66, Spring City 66, Heartland
66, Forum 66 Phase 3 and renovation project in Parc 66.

(4)

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.

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Introduction

Our
Sustainability
Strategy(5)

The emission of NOx, SOx and other pollutants are considered not
significant to our operations. In 2022, the total emissions of NOx,
SOx and PM from vehicles were estimated to be 25kg, 0.72kg, and1.83kg respectively.

(6)

We did not have any biogenic CO2 emissions during thereporting year.

(7)

Our GHG emissions and intensity figures for 2020 and 2021
have been restated as we updated the emissions factors forpurchased electricity in mainland China in accordance with
HKEX's recommendations.

(8)

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 Limited in
2021 and Hongkong Electric in 2021c) 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(9)

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.

(10) The GHG emission, energy, water and waste intensity figures in thistable are calculated per unit construction floor area.
(11) Since 2022, with the renewable energy procurement via PPA at
Spring City 66 in Kunming, we started to report scope 2 emissions
using two accounting methodologies according to GHG Protocol
Scope 2 Guidance: one based on the location-based method, andone based on the market-based method. We refer to market-based
accounting method for goal-setting and tracking. Prior to 2022, wereported scope 2 emission with one accounting methodology andthe carbon emission intensity of building in use (in tonnes CO2e/m2) of the entire portfolio of Hong Kong and the Mainland from 2018
to 2021 is as follows: 0.0643 for 2018, 0.0596 for 2019, 0.0493 for
2020, and 0.0460 for 2021.
(12) 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.
(13) Market-based method is a method to quantify the scope 2 GHG
emissions of a reporter based on GHG emissions emitted by

130 Hang Lung Properties Limited
Sustainability Report 2022

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendicesthe generators from which the reporter contractually purchases
electricity bundled with contractual instruments, or contractual
instruments on their own.
(14) The carbon emission intensity figures of buildings in use havebeen restated due to an update in calculation methodology. After
restatement, the figure for 2019 is 0.0596 tonnes CO2e/m2/year.
Without any restatement of the data disclosed in our Sustainability
Report 2021, the carbon emission intensity of buildings in use(Tonnes CO2e/m2/year) of the entire portfolio of Hong Kong and theMainland from 2019 to 2022 is as follows: 0.0785 for 2019, 0.0644
for 2020, 0.0597 for 2021, and 0.0521 for 2022.
(15) This only covers vehicles and vessels that are entirely owned andoperated by the Group, excluding any vehicles and vessels operated
by our service providers.
(16) Total electricity consumed is adjusted in 2020 and 2021 to include
the renewable electricity self-generated and consumed on site.
(17) Municipal water supplies are the sole fresh water source of
our operation. Water consumption data in Hong Kong remains
incomplete for 2020 as a result of the disrupted servicesof the Water Services Department. It is estimated that thewater consumption of our Hong Kong portfolio in 2020 isaround 500,000m3.
(18) This only covers total municipal potable water.
(19) This includes grey water, condensation water, fire service water,
cooling tower bleed off water, etc.
(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 isdisposed of offsite either at incineration facilities or in landfills, while
the hazardous waste is disposed of in compliance with government
requirements. We aim to share more quantitative information in
our subsequent report. The reported quantity of recyclables onlyreflects 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. Since our Mainland properties have primarily
switched to use LED lighting, the disposal of fluorescent tubes has
decreased significantly in 2020.
(21) We have started to disclose 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.
(22) We started to report the amount of food waste recycled in mainland
China in 2021.

Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

AppendicesSocialHK: Hong Kong MC: mainland China

HK
Indicator

Unit

MC

Total

2020

2021

2022

2020

2021

2022

2020

2021

2022

1,150

1,104

1,116

3,445

3,236

3,229

4,595

4,340

4,345

10

44

70

63

26

26

73

70

96

661
(58%)

609
(57%)

592
(57%)

2,131
(63%)

1,973
(61%)

1,913
(60%)

2,792
(62%)

2,582
(60%)

2,505
(59%)

479
(42%)

451
(43%)

454
(43%)

1,251
(37%)

1,237
(39%)

1,290
(40%)

1,730
(38%)

1,688
(40%)

1,744
(41%)

128
(11%)

97
(9%)

97
(9%)

497
(15%)

456
(14%)

429
(13%)

625
(14%)

553
(13%)

526
(12%)

567
(50%)

569
(54%)

555
(53%)

2,605
(77%)

2,498
(78%)

2,498
(78%)

3,172
(70%)

3,067
(72%)

3,053
(72%)

445
(39%)

394
(37%)

394
(38%)

280
(8%)

256
(8%)

276
(9%)

725
(16%)

650
(15%)

670
(16%)

Permanent
Full Time

1,115

1,043

1,021

3,382

3,210

3,203

4,497

4,253

4,224

Male

651

599

581

2,131

1,973

1,913

2,782

2,572

2,494

Female

464

444

440

1,251

1,237

1,290

1,715

1,681

1,730

Permanent
Part time

4

4

5

0

0

0

4

4

5

0

0

0

0

0

0

0

0

0

Female

4

4

5

0

0

0

4

4

5

Contract /Temporary

21

17

20

0

0

0

21

17

20

Male

10

10

11

0

0

0

10

10

11

11

7

9

0

0

0

11

7

9

156
(14%)

157
(15%)

166
(16%)

275
(8%)

153
(5%)

176
(5%)

431
(10%)

310
(7%)

342
(8%)

430
(38%)

400
(38%)

412
(39%)

1223
(36%)

1350
(42%)

1,408
(44%)

1,653
(37%)

1,750
(41%)

1,820
(43%)

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

Male

NumberFemaleEmployees by employee category
Executive staff
Administrative
staff

Number(%)(4)

Hang Lung Properties Limited
Sustainability Report 2022

131

Introduction

Our
Sustainability
Strategy

ClimateResilienceHK
Indicator

Unit

Operational staff

Resource
Management

WellbeingMC

Sustainable
Transactions

Appendices

Total

2020

2021

2022

2020

2021

2022

2020

2021

2022

554
(49%)

503
(47%)

468
(45%)

1884
(56%)

1707
(53%)

1,619
(51%)

2438
(54%)

2210
(52%)

2087
(49%)

135
(11.8%)

186(17.5%)

208(19.9%)

424(12.5%)

592(18.4%)

410(12.8%)

559(12.4%)

778(18.2%)

618(14.5%)

93(14.1%)

90(14.8%)

91(15.4%)

254(11.9%)

271(13.7%)

195(10.2%)

347(12.4%)

361(14.0%)

286(11.4%)

42(8.8%)

96(21.3%)

117(25.8%)

170(13.6%)

321(25.9%)

215(16.7%)

212(12.3%)

417(24.7%)

332(19.0%)

38(29.7%)

58(59.8%)

52(53.6%)

162(32.6%)

220(48.2%)

141(32.9%)

200(32.0%)

278(50.3%)

193(36.7%)

77(13.6%)

98(17.2%)

139(25.0%)

251(9.6%)

363(14.5%)

260(10.4%)

328(10.3%)

461(15.0%)

399(13.1%)

20(4.5%)

30(7.6%)

17(4.3%)

11(3.9%)

9(3.5%)

9(3.3%)

31(4.3%)

39(6.0%)

26(3.9%)

176(15.4%)

232(21.9%)

250(23.9%)

587(17.4%)

784(24.4%)

485(15.1%)

763(16.9%)

1016(23.8%)

735(17.3%)

106(16.0%)

128(21.0%)

117(19.8%)

335(15.7%)

437(22.1%)

284(14.8%)

441(15.8%)

565(21.9%)

400(16.0%)

70(14.6%)

104(23.1%)

132(29.1%)

252(20.1%)

347(28.1%)

201(15.6%)

322(18.6%)

451(26.7%)

333(19.1%)

32(25.0%)

46(47.4%)

33(34.0%)

159(32.0%)

194(42.5%)

99(23.1%)

191(30.6%)

240(43.4%)

131(24.9%)

89(15.7%)

119(20.9%)

149(26.8%)

370(14.2%)

559(22.4%)

337(13.5%)

459(14.5%)

678(22.1%)

486(15.9%)

55(12.4%)

67(17.0%)

67(17.0%)

58(20.7%)

31(12.1%)

49(17.8%)

113(15.6%)

98(15.1%)

116(17.3%)New hires (5)Total number andrate of new hires

Number(%)

By gender
Male
FemaleNumber(%)

By age group
Under 30
30 – 50

Number(%)

Over 50
Turnover (5), (6)Total number andrate of turnover

Number(%)

By gender
Male
FemaleNumber(%)

By age group
Under 30
30 – 50

Number(%)

Over 50132 Hang Lung Properties Limited
Sustainability Report 2022

Introduction

Our
Sustainability
Strategy

ClimateResilienceHK
Indicator

Unit

Resource
Management

WellbeingMC

Sustainable
Transactions

Appendices

Total

2020

2021

2022

2020

2021

2022

2020

2021

2022

68
(43.6%)

71(45.2%)

76(45.8%)

105(38.2%)

48(31.4%)

59(33.5%)

173(40.1%)

119(38.4%)

135(39.5%)

275(64.0%)

256(64.0%)

265(64.3%)

741(60.6%)

785(58.1%)

827(58.7%)

1,016(61.5%)

1,041(59.5%)

1,092(60.0%)

136(24.5%)

124(24.7%)

113(24.1%)

405(21.5%)

404(23.7%)

404(25.0%)

541(22.2%)

528(23.9%)

517(24.8%)

N/A

N/A

35%

N/A

NA

11%

N/A

23%

20%

N/A

N/A

49%

N/A

N/A

34%

N/A

56%

42%

Diversity
Gender ratio by employee category
Executive staff
Administrative
staff

Number(%)
of female

Operational staff
Gender ratio by job function
STEM-related
positionsExecutive staff
in revenuegenerating
functions (e.g.,sales, leasing)Number(%)
of female

Ratio of basic salary of women to men by employee category
All staff
Executive staff
Administrative
staff

N/A

Operational staff

N/A

N/A

1:0.992

N/A

N/A

1:1.031

N/A

N/A

1:0.978

1:1.323

1:1.319

1:1.285

1:1.296

1:1.179

1:1.245

N/A

N/A

1:1.214

1:1.161

1:1.174

1:1.173

1:1.171

1:1.201

1:1.18

N/A

N/A

1:1.121

1:1.139

1:1.152

1:1.152

1:1.049

1:1.031

1:1.04

N/A

N/A

1:1.105

1,140

1,060

1,046

3,382

3,210

3,203

4,522

4,270

4,249

661

609

592

2,131

1,973

1,913

2,792

2,582

2,505

479

451

454

1,251

1,237

1,290

1,730

1,688

1,744

25

21

11

105

109

89

130

130

100

12

8

5

55

41

33

67

49

38

13

13

6

50

68

56

63

81

62

100%

100%

100%

100%

100%

100%

N/A

N/A

N/A

100%

100%

100%

100%

100%

100%

N/A

N/A

N/A

Parental leave (7)Total number of
employees entitledto parental leave
Male
FemaleTotal number of
employees tookparental leave
Male
FemaleNumberNumberNumberNumberReturn to work rate by gender
Male
Female%Hang Lung Properties Limited
Sustainability Report 2022

133

Introduction

Our
Sustainability
Strategy

ClimateResilienceHK
Indicator

Resource
Management

WellbeingMC

Sustainable
Transactions

Appendices

Total

Unit

2020

2021

2022

2020

2021

2022

2020

2021

2022

Total hours of
employee training

Hours

5,736

10,17815,95994,38984,47185,865100,125

94,649101,824

Average hours of
employee training

hours peremployee

5.0

9.6

15.3

27.9

26.3

26.8

22.1

22.2

24

Employee training (8)Average training hours by gender
Male

Hours

5.2

9.7

15.2

27.9

26.5

26.6

22.5

22.6

23.9

Female

Hours

4.9

9.5

15.3

27.9

26.0

27.1

21.5

21.6

24.1

Average training hours by employee category
Executive staff

Hours

9.8

13.8

27.9

19.7

40.5

36.3

16.1

26.9

32

Administrative
staff

Hours

6.2

9.6

10.5

23.8

23.1

20.9

19.2

20.0

19

Operational staff

Hours

2.8

8.3

15.0

31.8

27.6

30.9

25.2

23.2

27

99.3%

N/A

N/A

99.6%

N/A

N/A

99.5%

99.8%

N/A

N/A

99.8%

N/A

N/A

99.8%

Percentage of employee trained by gender (9)
Male

%

N/A

N/A

Female

%

N/A

N/A

Percentage of employee trained by employee category(9)

Executive staff

%

N/A

N/A

100.0%

N/A

N/A

99.4%

N/A

N/A

99.7%

Administrative
staff

%

N/A

N/A

99.5%

N/A

N/A

99.9%

N/A

N/A

99.8%

Operational staff

%

N/A

N/A

99.4%

N/A

N/A

99.4%

N/A

N/A

99.4%

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%

33%

40%

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

134 Hang Lung Properties Limited
Sustainability Report 2022%0%

Introduction

Our
Sustainability
Strategy

ClimateResilienceHK
Indicator

Resource
Management

WellbeingMC

Sustainable
Transactions

Appendices

Total

Unit

2020

2021

2022

2020

2021

2022

2020

2021

2022

Occupational
health and safety

hours

N/A

1,769

4,603

N/A

9,814

9,210

N/A

11,583

13,813

Data privacy andcyber security

hours

N/A

N/A

1,461

N/A

N/A

2,854

N/A

N/A

4,315

Crisismanagement

hours

N/A

N/A

1,193

N/A

N/A

3,864

N/A

N/A

5,057

Anticorruption Training

hours

N/A

1,225

1,613

N/A

3,474

3,391

N/A

4,699

5,003

Training by Topics
Training hours by topics

Percentage of employee received anti-corruption training by employee category
Executive staff

%

47%

100%

96%

26%

100%

99%

N/A

100%

98%

Administrative
staff

%

53%

100%

99%

19%

100%

99%

N/A

100%

99%

Operational staff

%

35%

100%

99%

15%

100%

98%

N/A

100%

98%

Occupational health and safety (10)Total hours worked

Hours

2,364,648

2,366,760

2,352,395

6,764,000

6,204,736

6,459,487

9,128,648

8,571,496

8,811,882

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

24

27

20

24

29

32

48

56

52

Injury rate (per100 employees)

N/A

2.03

2.28

1.70

0.71

0.93

0.99

1.05

1.31

1.18

Lost-time workrelated injuries

Number

21

26

19

21

27

14

42

53

33

Rate of losttime work-related
injuries / Lost-time
injury rate (LTIR) (12)

N/A

1.78

2.20

1.62

0.62

0.87

0.43

0.92

1.24

0.75

Numberof injuries/ million
8.88
hours
worked

10.99

8.08

3.10

4.35

2.17

4.60

6.18

3.74

Lost-time injury
frequency
rate (LTIFR)

High-consequencework-related
injuries (13), (14)

Number

2

2

0

2

2

3

4

4

3

Rate of highconsequencework-related
injuries (per100 employees)

N/A

0.17

0.17

0.00

0.06

0.06

0.09

0.09

0.09

0.07

Hang Lung Properties Limited
Sustainability Report 2022

135

Introduction

Our
Sustainability
Strategy

ClimateResilienceHK

Resource
Management

WellbeingMC

Sustainable
Transactions

Appendices

Total

Indicator

Unit

2020

2021

2022

2020

2021

2022

2020

2021

2022

Lost days
due to workrelated injuries

Days

671

537

387

707

828

962

1,377

1,365

1,349

Lost day rate (per100 employees)

N/A

56.71

45.38

32.90

20.90

26.69

29.78

30.17

31.85

31

Absentee rate (15)

%

1.63

2.17

2.00

1.70

1.63

1.56

1.68

1.78

1.67

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.
(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 and age.

(3)

There was no significant variation in the number of non-supervised
workers in the reporting period or between the current and lastreporting period. Supervised workers do not cause significant
variation in the Group’s workforce and activities. Most of thesupervised workers are responsible for providing cleaning andsecurity services.

(4)

The number of executive staff in mainland China decreased in
2021 due to employee grade alignment between Hong Kong andmainland China.

(5)

The new hire and turnover rate in 2020 and 2021 have been adjusted
as the calculation methodology is updated.

(6)

The turnover rates cover voluntary resignations, retirements, andinvoluntary leave during the corresponding reporting periods.

(7)

We do not report 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.

(8)

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
induction or refresher training courses on integrity and crisis
management during the reporting period, and all employees with

136 Hang Lung Properties Limited
Sustainability Report 2022

company email addresses received cybersecurity training. The
percentage of employee 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.
(9)

We started disclosing the percentage of employee training by genderand employee category since 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.
(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-consequence workrelated injuries, rates of recordable work-related injuries and lost 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) High-consequence work-related injuries (excluding fatalities) refer towork-related injuries that result in an injury that a worker cannot,
does not or is not expected to recover fully to pre-injury health status
within six months.
(14) 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.
(15) 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).

Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

Appendix 6 – Independent Assurance Opinion Statement

Statement No.: SRA-HK 784721

Hang Lung Group Limited and Hang Lung Properties Limited Sustainability Report 2022
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 2022 (“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 January2022 to 31st December 2022. The Report is prepared in accordance with the GRI Sustainability Reporting Standards(“GRI Standards”) and in accordance with the Hong Kong Stock Exchange’s (“HKEX”) Environmental, Social andGovernance 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.

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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; bi-monthly corporate newsletter; annual sustainability-focused interviews 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 customer engagement surveys; annual tenant satisfaction surveys and interviews; tenant 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
community 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; biannual results announcements and press 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.

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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 a rangeof sustainability, environmental and social standards including GRI G3, GRI G3.1, GRI G4, GRI Standards, AA1000, HKEXESG 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 and assessment body founded in 1901. The assurance iscarried out in line with the BSI Fair Trading Code of Practice.

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For and on behalf of BSI

Verifier of the Report

Mr. Stephen Yu

Aaron Chim

Chief Operating Officer –Lead Assuror

Hong Kong
26 March 2023

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Appendix 7 – Independent Practitioner’s Assurance Report forGreen Bonds and Green Loans

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Appendix 8 – Disclosure on Task Force on Climate-Related Financial
Disclosures (TCFD)
In this section, we disclose our approach to addressing climate-related issues in alignment with the
TCFD’s recommendations.

TCFD’sCoreelement

The Company’s Approach

Governance(a) Describes the board’s oversight of climate-related risks and opportunities.

Addressed in
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As indicated in the Boards’ “Joint Statement on Oversight and Management ofEnvironmental, Social and Governance Issues,” the Boards have overall responsibility
for the Group’s ESG strategy and reporting, including identification of relevant risks
and opportunities. The Boards also approve the Sustainability Framework, and the longterm sustainability goals and targets under the Sustainability Framework, and provide
ongoing oversight to the framework. One of the four priorities under the Sustainability
Framework is Climate Resilience.

Our Approachto Sustainability

The Boards review progress towards sustainability goals and targets related to climate
resilience – including the Group’s 2025, 2030 and 2050 goals and targets – principally
through regular reporting of the Sustainability Team to the Boards (at least twice ayear). In addition, the Sustainability Team reports monthly to the Vice-Chair of theBoards, including regular detailed updates climate-related risks and opportunities.
More generally, the Boards have overall responsibility for risk management, evaluating
and determining the nature and extent of significant risks they are willing to take toachieve the Group’s strategic objectives. The Audit Committee is delegated by the
Boards to oversee the ongoing effectiveness of the Group’s risk management system,
including climate-related risks.
Key decisions endorsed by the Boards in the last two years include the 2025 targets andthe Group’s commitment to setting both near- and long-term targets to reach net-zerovalue chain GHG emissions by no later than 2050 in alignment with the Science Based
Targets initiative’s (“SBTi’s”) Net-Zero Standard (NZS).
(b) Describes management’s role in assessing and managing climate-related risks and opportunities.
Role of Sustainability Steering Committee (SSC)
The SSC, chaired by the Vice Chair of the Boards and comprising senior representatives
from a cross-section of departments, formulates, coordinates and implements climate
resilience strategies, and ensures that our climate-related targets are translated into
annual ESG KPIs. The SSC reviews the Group’s progress against specific climate-related
targets and annual ESG KPIs in detail in regular meetings (at least twice a year).
The SSC also discusses climate-related risks and opportunities in detail, including for
instance issues related to embodied carbon, energy efficiency, electric vehicles, physicalrisks from climate change, and other relevant issues.

Our Approachto Sustainability

Role of Sustainability TeamThe Sustainability Team provides regular updates to the Boards (at least twice ayear) and to the Vice Chair (at least monthly) on climate resilience, and supports thedetailed strategy development and execution of ESG KPIs. The Team also works withother departments to report to the CEO on proposed sustainability-related spending(both capital and operating expenditures) in the annual budgeting exercise, including
proposed investments supporting climate resilience.

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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 and overseeing the Group’s risk
management activities. Physical risks of climate change and the risks of the transition
to a low-carbon economy are among the enterprise-level risks overseen by the ERM
Working Group and the executive leading the Sustainability Team is assigned as theowner of these specific climate-related risks.
Strategy(a) Describes the climate-related risks and opportunities the organization has identified over the short,medium, and long term.
(b) Describes the impact of climate-related risks and opportunities on the organization’s businesses,
strategy, and financial planning.
(c) Describes the resilience of the organization’s strategy and taking into consideration different climaterelated scenarios, including a 2°C or lower scenario.
Physical risks
Following our first physical risk analysis conducted in 2021, we conducted a detailed
climate hazard and vulnerability assessment in 2022 to model the potential changes ofkey climate hazards, including flooding, typhoon and extreme rain, heat waves and raininduced landslides, and their impact on our assets under various climate scenarios forthe periods 2041-2070 and 2071-2100. The study covers three properties in mainland
China, ten properties in Hong Kong, and three projects under development, and we willcontinue to assess our properties in mainland China through 2025.
The study is based on multiple plausible future scenarios e.g., SSP2-4.5 and
SSP5-8.5. The timeline of projections covers various time points including mid-century(2041-2070) and end of century (2071-2100). This long timeline helps to ensure that our
properties will be future-proofed throughout their lifespan.
Under the scenario SSP5-8.5, the annual maximum temperature is projected to have an
increase of 1.1-1.7 degree Celsius by mid-century and 3.3-4.5 degree Celsius by end of
century, resulting in increasing air-cooling demand. About 38% of our properties are at
medium risk of heat wave and we will be reviewing the adequacy of our properties' air
cooling capacity to ensure thermal comfort for our customers and employees.
From the flood modelling and existing flood prevention facilities and measures analysis,
about 75% of our properties are at low to medium risk of flooding whereas 81% of ourproperties are at low to medium risk of wind-related risks (e.g., windborne debris). For
the remaining properties which have higher exposure to climate-related hazards, there
are some measures already in place, and we will continue to improve them in order toenhance their climate resilience capability. One of our new sites is close to a slope, andour design team will incorporate necessary measures to minimize risks from the slope.
For detailed discussions, please refer to the Climate Resilience section.
Our responses
The findings have influenced our business strategy and financial planning, and we aredeveloping a comprehensive adaptation plan by 2025. We have identified a range ofpotential adaptation measures and are examining their feasibility for potential adoption:
Heat wave: add membrane or install shading devices to façade/glass to reduce solar
absorption; apply solar reflective materials to the roof and pavement (e.g., green roof,
solar reflective paint)
Flooding: install flood gate to protect vulnerable places in the properties (e.g.,underground plant room); install a digital flood detection and warning system in Plaza

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66, Center 66, Hang Lung Center and SCBB; install surface flow channel at undergroundplant room, carpark or basement areas.
Typhoon and Extreme Rain: increase the frequency of inspections of the façade,exterior-mounted equipment, drainage system during typhoon season; regularly inspect
water leakage blackspots (e.g., façade, sealant of slab/vent openings) and conduct
appropriate retrofit works if needed; adopt comprehensive methods to reduce thevulnerability of trees to extreme wind, such as providing deeper soil, choosing tree
species with deeper root systems and ensuring that the root-soil plate is large enoughto withstand extreme wind conditions.
Landslide: conduct a deep slope investigation for Shouson Hill Road Redevelopment
project, including slope stabilization works, landscape treatment and landslide warning
system etc.
Transition risks and opportunities
Carbon pricing is likely to have significant impacts on the real estate sector over time. In
2021, we completed our first carbon pricing analysis. In 2022, we conducted a refreshedcarbon pricing scenario analysis to 2050 with more China-specific considerations.
The 2020 study was based on six scenarios developed by the Network for Greening
the Financial System (NGFS), namely Net Zero 2050, Divergent Net Zero, Below 2 °C,
Delayed Transition, Nationally Determined Contributions (NDC), and Current Policies.
For each scenario, we considered our exposure based on Business-as-Usual andScience-Based Target pathways for our emissions and progress against targets, thedrivers and variables impacting potential carbon prices, and the resulting potential cost
impacts to our business.
Decarbonization in line with Science-Based Target pathways could potentially:• reduce our potential carbon costs. If the Group fully achieves its SBTs, the Group
could reduce its potential carbon costs on average by 47% compared to BAU in 2030,
and by 95% compared to BAU in 2050.
• expand the availability of capital, and reduce our cost of capital• help attract and retain talented people who are concerned about the climate
crisis, and• strengthen the loyalty of tenants that have their own climate change commitments,
which in turn could help secure our long-term revenues
For each of the above-mentioned opportunities from decarbonization, failure todecarbonize represents a corresponding risk to our business.
Our responses• In 2022, the SBTi verified and approved Hang Lung Properties Ltd.’s net-zero sciencebased target in December 2022. We are the first real estate company in Hong Kongand mainland China – and among the first globally – to have its near- and long-term
net-zero targets endorsed under SBTi’s Net-Zero Standard framework. We also joined
the Business Ambition for 1.5°C campaign and the Race To Zero campaign led by theUnited Nations.
• Starting in 2021, we implemented an annual greenhouse gases mitigation plan
to reduce our portfolio-wide Scope 1 and 2 GHG emissions, with inputs from allproperties. Each annual plan is first endorsed by the management at property-level,
then ultimately approved by the Vice-Chair of the Boards. The 2022 GHG Mitigation
Plan has been implemented and we are preparing a comprehensive climate resilience
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plan for 2023-2025 to include all scopes of emissions. By adopting a wide range ofenergy-saving measures, and completing power purchase agreements for renewableenergy, the Group is progressing well towards achieving its GHG emission intensity
targets for 2025 and 2030.
• We delivered priority ESG training to identified departments in 2022 on embodied
carbon and operational carbon, among other issues, to develop our people tostrengthen our climate resilience.
• We partnered with one of our strategic tenants on a groundbreaking sustainability
partnership, including concrete actions supporting emissions reductions together.
• We engaged a climate consultant to conduct a feasibility study on implementing aninternal carbon pricing within the Group to inform our decision making.
Resilience of our strategy
Our strategy is resilient, since it reflects our preparedness on the one hand forphysical risks under the highest emissions scenario, and on the other, our preparedness
for transition risks under the fastest decarbonization scenario. More specifically, we
have established a 2025 target to conduct technical analysis of physical risks fromclimate change for all our properties, and our alignment with SBTI’s NZS gives us
the confidence that our decarbonization plans and targets are aligned with climate
science. For new projects, we aim to optimize energy efficiency and renewableenergy investments and implement measures that offer co-benefits for mitigation
and adaptation.
Risk(a) Describes the organization’s processes for identifying and assessing climate- related risks.
Management
The Group conducts a materiality assessment annually to identify material ESG issues
Our Approachthat are relevant to our business. In 2022, we worked with technical consultants
to Sustainability;
to undertake a physical risk analysis against three climate scenarios and a carbon
pricing analysis against six transition scenarios to identify potential climate-related risks Climate Resilience
relevant to our business. We also consult regularly with stakeholders on scientific,
policy, technology and regulatory risks, and participate in numerous industry platforms,
benchmarks and indices in Hong Kong and mainland China, the Asia-Pacific region, andinternationally to benchmark ourselves against our peers and identify emerging trends.
(b) Describes the organization’s processes for managing climate related risks.
Climate-related risks are managed through:• regular meetings of our Enterprise Risk Management Working Group• regular meetings of our Sustainability Steering Committee

Our Approachto Sustainability;
Climate Resilience• annual Strategic ESG KPIs related to Climate Resilience (see 2023 ESG KPIs),• working groups dedicated to implementing specific climate-related KPIs, and• monthly reporting of the Sustainability Team to top management.
(c) Describes how processes for identifying, assessing, and managing climate-related risks are integrated
into the organization’s overall risk management.
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 owner of both physical and transition climate-related risks, reports
to the ERM Working Group regularly on the status of climate-related risk management
to ensure adequate control measures are in place. Please refer to the Corporate
Governance Report section in our 2022 Annual Report for detailed information on theoverall risk management approach of the Group. In addition, annual Strategic ESG

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KPIs related to climate resilience are tied to biannual performance reviews for relevant
departments and individuals, including the CEO in his reporting to the Boards.
Metrics andTargets(a) Disclose the metrics used by the organization to assess climate- related risks and opportunities in linewith its strategy and risk management process.
We track our use of resources monthly at portfolio-level to help manage relevant
climate-related risks and opportunities. We also report quarterly to our top Managementon our progress towards key emissions and energy targets. Key climate-related metrics,
including GHG emissions, energy usage, waste and water consumption, are also
disclosed annually in the Performance Table of our Sustainability Report.

Climate Resilience;
Resource
Management;
Performance Table-Environment(b) Discloses Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and therelated risks.
The Group’s direct and indirect energy use and the related Scope 1, 2 and 3 GHG
emissions are disclosed in the Performance Table – Environment in this Sustainability
Report. It is the first time we are disclosing our GHG emissions under all relevant Scope
3 emissions categories in our annual sustainability reporting.

Performance Table– Environment
Climate Resilience(c) Describes the targets used by the organization to manage climate-related risks and opportunities andperformance against targets.
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 and resource 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 can be found on Climate
Resilience and Resource Management sections of this Report.

Our Approachto Sustainability
Appendix –Strategic ESG KPIs

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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;

Joint Statement on Oversight andManagement of Environmental,
Social and Governance 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.
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
non-compliance with environmental
laws and regulations that had asignificant impact on the Groupduring the reporting period.

KPI A1.1

The types of emissions and respective emissions data.

Performance Tables– Environmental
Air emissions including SOx, NOx
and PM are not consideredsignificant in our 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

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Disclosure

Section/ Explanation

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

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 not encounter any problems insourcing 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:
General
Policies on minimising the issuer’s significant impacts
The Environment Disclosure on the environment and natural resources.
and Natural
KPI A3.1
Description of the significant impacts of activities on
Resources
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
Disclosure on Task Forceon Climate-related Financial
Disclosures (TCFD)

KPI A4.1

Climate Resilience
Disclosure on Task Forceon Climate-related Financial
Disclosures (TCFD)

Description of the significant climate-related issues
which have impacted, and those which may impact,
the issuer, and the actions taken to manage them.

Resource Management

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SocialB1:
Employment

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.

B2: Health and
SafetyKPI 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.

B3:
Development
and Training

B4: Labour
Standards

Wellbeing
There were no confirmed
incidents of non-compliance with
employment related laws andregulations that had a significant
impact on the Group during thereporting period.

Wellbeing – Employee Healthand Safety
Performance Tables – Social
There were no confirmed
incidents of non-compliance withoccupational health and safety
related laws and regulations that
had a significant impact on theGroup during the reporting 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.

152 Hang Lung Properties Limited
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Wellbeing
Hang Lung's Sustainability Policy
There were no confirmed incidents
of non-compliance with laws andregulations relating to child andforced labor that had a significant
impact on the Group during thereporting period.

Introduction

Aspects

B5: Supply
ChainManagement

B6: ProductResponsibility

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

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
child labor 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

GeneralInformation on:
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 our marketingand promotional materials
comply with relevant laws
and regulations, and avoid
making any misrepresentation,
exaggeration or overstatement of
the Group'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 Groupduring the reporting period.

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 –Maintaining Quality Standards
There were no materially significant
complaints received relating to
the provision and use of
products and services during thereporting period.

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153

Introduction

Aspects

B7: Anticorruption

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Sustainable
Transactions

Appendices

KPI

Disclosure

Section/ Explanation

KPI B6.3

Description of practices relating to observing andprotecting intellectual property rights.

We have relevant policy inplace to observe and protect
intellectual property rights. Our
Staff Handbook provides guidelines
on respecting intellectual property
rights. Employees using infringing
copies of copyright works inthe course of their employment
may incur disciplinary action orsummary dismissal.

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.

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.

B8: Community
Investment

Wellbeing

Our Sustainability Strategy –Sustainability Governance
There were no confirmed incidents
of non-compliance with laws andregulations relating to bribery,
extortion, fraud and money
laundering that had a significant
impact on the Group during thereporting 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 Groupor its employees during thereporting period.

KPI B7.2

Description of preventive measures and whistleblowing procedures, and how they are implemented
and monitored.

Our Sustainability Strategy –Sustainability Governance
Annual Report 2022 P.116
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

154 Hang Lung Properties Limited
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Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

GRI Content Index
Hang Lung Properties has reported in accordance with the GRI Standards for the period January 1, 2022 to December
31, 2022.

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, 2022 to December
31, 2022.

2-1

Organizational details

About this Report
About Hang Lung Properties
Annual Report 2022 P.9 (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
2022 (P.202-204).

2-3

Reporting period,
frequency andcontact point

About this Report
This Report was published in April 2023.

2-4

Restatements
of information

Performance Tables

2-5

External assurance

About this Report
Independent Assurance Opinion Statement

2-6

Activities, value
chain and otherbusiness relationships

About Hang Lung Properties
Our Sustainability Strategy
Sustainable Transactions – Sustainability Issues Across
Our Value Chain
Annual Report 2022 P.9, 32-69 (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

GRI 1: Foundation 2021
Reporting inaccordance to the
GRI Standards

GRI 2: General Disclosures 2021
The Organizationand its
reporting practices

Activities
and workers

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155

Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

GRI Standard

GRI

Disclosure

Section/ Explanation

Governance

2-9

Governance structure
and composition

Our Sustainability Strategy – Sustainability Governance
Annual Report 2022 P.92-126 (Corporate Governance
Report, Profile of the Directors)

2-10

Nomination and selectionof the highest
governance body

Annual Report 2022 P.104-105 (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 2022 P.95 (Corporate Governance Report)

2-12Role of the highest
governance bodyin overseeing themanagement of 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 2022 P.116 (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 2022 P.116 (Corporate Governance Report– Code of Conduct)

2-16

Communication ofcritical concerns

Our Sustainability Strategy – Sustainability Governance
Annual Report 2022 P.116 (Corporate Governance Report– Code of Conduct)

2-17

Collective knowledgeof the highest
governance body

Annual Report 2022 P.95 (Corporate Governance Report –Effective and Qualified Board)

2-18

Evaluation of theperformance of thehighest governance body

Annual Report 2022 P.95 (Corporate Governance Report –Effective and Qualified Board)

2-19

Remuneration policies

Annual Report 2022 P.104-105 (Corporate Governance
Report –Nomination and Remuneration Committee)
Annual Report 2022 P.168-169 (Notes to the
Financial Statement – Emoluments of Directors andSenior Management)
Terms of Reference of Nomination andRemuneration Committee

2-20

Process todetermine remuneration

Annual Report 2022 P.104-105 (Corporate Governance
Report –Nomination and Remuneration Committee)

2-21

Annual totalcompensation ratio

Annual Report 2022 P.168-169 (Notes to the
Financial Statement –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.

156 Hang Lung Properties Limited
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Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

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 Governance

2-25

Processes to remediate
negative impacts

Our Sustainability Strategy – Ethics and Integrity
Whistleblowing Mechanism

2-26

Mechanisms forseeking advice andraising 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

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 2022 P.16-27 (Chair’s Letterto Shareholders)

GRI 201: Economic
Performance 2016

201-1

Direct economic value
generated and distributed

Performance Tables – Economics

201-2

Financial implications
and other risks andopportunities due toclimate change

Climate Resilience

201-3

Defined benefit plan
obligations and otherretirement plans

Annual Report 2022 P.189 (Notes to the Financial
Statements – Employee Benefits)

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Introduction

GRI Standard

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

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 forrisks 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 andtraining about anticorruption policies
and procedures

Our Approach to Sustainability – Ethics and Integrity
Performance Tables – Social

205-3

Confirmed incidentsof corruption andactions taken

There were no concluded legal cases regarding corrupt
practices brought against the Group or its employees
during the reporting period.

Procurement Practices

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
outside of the organization

We do not disclose the energy consumption outside
the organization as we have accounted for theenergy consumption outside the organization in our
scope 3 calculation and relevant figures are disclosed
inPerformance Table – Environmental.

302-3

Energy intensity

Performance Tables – Environmental

302-4

Reduction ofenergy consumption

Performance Tables – Environmental
Resource Management – Energy Management

158 Hang Lung Properties Limited
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Introduction

GRI Standard

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

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 andEffluents 2018

303-1

Interactions with water asa shared 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 report the amount of wastewater discharged
from our operation as accurate record is not tracked.
Water discharged from our operations was transported
to local municipal wastewater systems for treatment.
We adopted various measures in our operations,
including water-efficient 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, protectedareas and areas of highbiodiversity value outside
protected areas

304-2

Significant impacts ofactivities, products andservices on biodiversity

Resource Management – Biodiversity
All of our properties are located in prime locations
in cities. Although we expect our operations to haveminimal impact on natural ecosystems and biodiversity,
in our Sustainability Policy, we set out our commitments
to biodiversity conservation, such as avoiding thedevelopment of projects and operational activities inecologically sensitive and nationally protected sites
deemed critical for biodiversity.

304-3

Habitats protectedor restored

Water and Effluents

Biodiversity

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Introduction

GRI Standard

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

GRI

Disclosure

Section/ Explanation

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

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

Emissions

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 2016308-1

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

160 Hang Lung Properties Limited
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AppendicesIntroduction

GRI Standard

GRI

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Disclosure

Section/ Explanation

Wellbeing

Sustainable
Transactions

AppendicesMaterial 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 fulltime employees that are
not provided to temporary
or parttime employees

Wellbeing – Employee Wellbeing

401-3

Parental leave

Performance Tables – Social

Occupational Health and Safety
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 Healthand Safety 2018403-1

Occupational healthand safety
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 healthand safety

Our Sustainability Strategy – Sustainability
Governance Structure
Wellbeing – Employee Health and Safety
Sustainable Transactions – Project Safety Management

403-5

Worker training on
occupational healthand safety

Wellbeing – Employee Health and Safety
Sustainable Transactions – Project Safety Management

403-6

Promotion ofworker healthWellbeing – Employee Health and Safety
Sustainable Transactions – Project Safety Management

403-7

Prevention and mitigationof occupational healthand safety impacts
directly linked bybusiness relationships

Wellbeing – Employee Health and Safety
Sustainable Transactions – Project Safety Management

403-8

Workers coveredby an occupational
health and safety
management system

Wellbeing – Employee Health and Safety
Sustainable Transactions – Project Safety Management

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Introduction

GRI Standard

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

GRI

Disclosure

Section/ Explanation

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.

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
per year 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 toemployee who are retiring.

404-3

Percentage of employees
receiving regularperformance and careerdevelopment reviews

Performance Tables – Social

Training and Education

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 governancebodies and employees

Performance Tables – Social
Please refer to Annual Report 2022 (P.96) on the gender
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-compliancewith the laws and regulations relating to discriminationthat had a significant impact on the Group during thereporting period.

Non-discrimination

162 Hang Lung Properties Limited
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Introduction

GRI Standard

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

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 2016413-1

Operations with local
community engagement,
impact assessments, anddevelopment programs

Wellbeing – Community Wellbeing
The Group does not conduct social impact assessment
to measure its impact to the local communities atthis 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 search regularly to identify
any actual and potential negative impacts on the local
community. We do not aware of any significant negative
impact 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
Health and
Safety 2016

416-1

Assessment of thehealth and safety
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 noncompliance concerning
the health and safety
impacts of products
and services

There were no confirmed incidents of non-compliancewith laws and regulations relevant to health and safety
matters relating to our products and services that
had a significant impact on the Group during thereporting 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: Customer
Privacy 2016

418-1

Substantiated complaints
concerning breaches ofcustomer privacy andlosses of customer data

Sustainable Transactions – Protecting Customer
Data Privacy

Customer Privacy

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163

Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

Appendices

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
79%
8%

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) 47.9%

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) 67%(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

164 Hang Lung Properties Limited
Sustainability Report 2022

Introduction

Our
Sustainability
Strategy

ClimateResilience

Resource
Management

Wellbeing

Sustainable
Transactions

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 2022 (P.
44-53 and 57-62) for the occupancy rate of ourmajor properties.

AppendicesNote: The Group discloses against the SASB criteria on a voluntary basis only and the disclosed metrics are not verified byany external party.

Hang Lung Properties Limited
Sustainability Report 2022

165

S TOCK CODE

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