2023

SUSTAINABILITYREPORT

About This Report
Introduction to This Report
This report is the 16th sustainability report issued by China Vanke Co., Ltd., mainly focusing on the disclosure of Vanke Group’s
philosophy, practices, and effectiveness in environmental, social, and governance (“ESG”) aspects in the year 2023.

Reporting period
From 1 January 2023 to 31 December 2023. In order to ensure that this report completely reflects the Group’s ESG influenceand performance, part of this report traces back to previous years, where appropriate.

References of names
To facilitate presentation and reading, “China Vanke Co., Ltd.” in this report is referred to as “the Company” or “Company”. “China
Vanke Co., Ltd. and its subsidiaries” are referred to as “Vanke”, “Vanke Group”, “the Group”, “Group” or “we”. Unless otherwise
indicated, terms used in this report shall have the same meanings as those defined in the Vanke Group Annual Report 2023.

Preparation basis
The Ten Principles of the UN Global Compact
The Guidance on Social Responsibility (ISO 26000:2010) issued by the International Organization for Standardization (ISO)GRI Sustainability Reporting Standards (“GRI Standards”) issued by the Global Sustainability Standards Board (“GSSB”)
The Chinese Social Responsibility Standard GB/T36001-2015 Guidance on Social Responsibility Reporting
SASB Sustainability Accounting Standard (SASB Standard) for the Real Estate Owners, Developers & Investment Trusts
Environmental, Social and Governance Reporting Guide (“HK-ESG”) in Appendix C2 to the Rules Governing the Listing of
Securities on the Stock Exchange of Hong Kong Limited (“HKEX”)
Task Force on Climate-related Financial Disclosures (“TCFD”)
Taskforce on Nature-related Financial Disclosures (“TNFD”)
Self-Regulatory Guidelines No. 1 for Companies Listed on the Shenzhen Stock Exchange -- Standard Operation of Listed
Companies on the Main Board
Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange - Sustainable Development Report(Trial) (Draft for Comments)
Guidelines on Corporate Social Responsibility Reporting for Chinese Enterprises (CASS-CSR5.0) issued by the Chinese
Academy of Social Sciences
Corporate Social Responsibility Guidelines of Real Estate Enterprise in Guangdong Province issued by the Guangdong Real
Estate Association

Reporting principles
This report is prepared in accordance with the four reporting principles listed in the Environmental, Social and Governance
Reporting Guide (“HK-ESG”) on the Stock Exchange of Hong Kong Limited, namely “materiality”, “quantitative”, “balance”, and“consistency”.

Reporting scope
While determining the reporting scope, we ensure that this report can reflect the ESG impact and performance of the Group.
Unless otherwise indicated, this report covers the sustainability performance of the operations and management services from 1
January 2023 to 31 December 2023 (“within the reporting period”, “at the end of the reporting period”).

Review and approval
This report has been reviewed by the Board of Directors (the “Board”) before its release. Vanke assures that this report is free ofany false information, misleading statements or major omissions.

Disclaimer
This report contains forward-looking statements, including but not limited to words or phrases, such as “will”, “expects”, “forecasts”,“future”, “aims”, “estimates”, “plans”, “believes”, “potential”, “continues”, “continuous”, “objective”, “purpose”, and “possible”.
This part is based on current expectations, assumptions, estimates, and forecasts, which may be affected by uncertain factors
and therefore, lead to material differences from actual results. Vanke Group does not undertake any obligation to update any
forward-looking statements in this report, except for obligations required by laws. Vanke Group is not responsible for the resultsof any person’s judgment based on the information contained in this report.

Report accessIn case of any discrepancy between the Chinese and English versions, the Chinese version shall prevail. The electronic versionof the report has been uploaded to the HKEXnews, the website of the Shenzhen Stock Exchange and the Company’s official
website at www.vanke.com.

Opinions and feedback
For any questions or suggestions concerning Vanke Group’s sustainability performance or this report, please send an email top-vkesg@vanke.com, or call us at +86 (755) 25606666.

CONTENT

33

nal
o
i
t
ra
Ope icesct
Pra ur Strategy Management
O

36

About This Report

45

04

Report Summary

61

09

Message

10

Board Statement

11

About Vanke

11

Company Overview

69

ity
abil

81 PErnvironmen
actic

83

Our

90
90

Topic of the Year

17

Creating an Ideal Future City

25

Building a Beautiful and Shared Future Home

147

Climate-related Risk and Opportunity

As a leading city and town developer and service provider in
China, Vanke has long been committed to promoting green
and low-carbon development and leading the industry.

tion
tain
pera
Sus
O
e
nc
plia
Com
cts
rodu
P
d
Goo
es
rvic
d Se
o
o
G

35

01

17

Report Summary

98
104

111

es

Stra
tegy
Clim
ate C
hang
e Re
Gree
spon
n De
se
sign
Com
Adva
mitm
ncin
ent
g Gr
een
Prac
Con
ticin
s
truct
g Gr
ion
een
Ope
ratio
n

159

Appendix

159

ESG Key Performance165

ESG Index

129

167

Index to SASB Indicators

139

113
114

tices

c

Pra
l
a
i
c

So

tal

m

a
a Te
tegy
t as
Stra
s
e
r
u
B
O
The
g for
n
i
ip
v
i
Str
ersh
artn
P
n
nt
-wi
pme
Win
velo
e
D
red
Sha

During compliant operation, Vanke continuously enhances
corporate governance to lay a solid foundation for quality. We
have established our sustainability strategy in combination withour business and the United Nations Sustainable Development
Goals (“SDGs” or “UN SDGs”) to ensure the integration of
the philosophy of sustainable development into our business
operations. Moreover, we advocate honest duty performanceand value integrity culture. Integrity training is conductedannually, covering members of the Board and all employees,
to instil the integrity culture in every employee. Furthermore,regarding the residential property of our products, we adhere
to the core ideas of “quality, health and capability”, carry out
full-cycle control of construction quality, and strive to provide
customers with excellent products.
Vanke has never ceased to explore green and low-carbon
development and become a pioneer in the industry repeatedly:
Vanke is the first in the domestic real estate industry to write“to become an excellent green enterprise” in its vision. It isalso the first in the domestic real estate industry to put forward
the green development philosophy of “industrialisation,
green building and full renovation”. Vanke City (Phase IV) in
Shenzhen is the first domestic residential project to obtain thenational Three Stars Green Building certification. Shenzhen
Vanke Centre in Dameisha is China’s first LEED Platinumcertified green office project. Vanke is also the first member
company in the global real estate industry to join the “Climate
Saver” programme initiated by the World Wide Fund for Nature(“WWF”). It is China’s first enterprise in the Fortune 500 thatdevelops a zero-waste office. Vanke Foundation is the first to
propose the distributed ecological treatment method of organic
waste in urban communities and China’s first public welfare
foundation that incorporates “community waste management”
into its strategies.

In the journey of social sustainability, Vanke has always beenat the forefront through long-term practice and innovation. By
upholding the culture of “striving for the best as a team”, we
offer a workplace environment based on equality, respect,tolerance and diversity, providing growth and development
opportunities for every employee. Audits of human resources
operations are carried out throughout the Group to ensurethat all organisations strictly observe all rules and policies
and that employees’ rights are not infringed. Additionally, we
have built a general training system for the headquarters
and BG/BU-based distributed training systems, linked by
the “V-LET'S SHARE” platform. We advocate a “win-win
partnership” and promote the progress and development of
the industry with the philosophy of sustainable development.
We have joined the Green Supply Chain Action for theReal Estate Industry in China and implemented the green
industry chain and ESG plan through AUPUP. We strive
to create a new ecology for the upstream industry chain,drive the transformation of the industry’s supply chain, andcontinually improve the influence of Vanke’s green value
chain. Furthermore, we promote “shared development” andinterpret corporate social responsibility through actions.
Vanke launched and hosted the Run for Fun series. Overnearly a decade, the Run for Fun series has become one of
the national fitness IPs with significant participation, influenceand comprehensive coverage, motivating more people to join
the fitness-for-all program.
We uphold the philosophy of long-term development,
continuously consolidate sound operational practices, leadgreen and low-carbon environmental practices, and promotesharing and inclusive social practices to contribute to a green
and healthy ecological environment and the sustainable
development of human society.

2023 Sustainability Report

About This Report Report Summary Message Board Statement About Vanke

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Highlights of 2023

Net Assets

Total Assets
RMB

1,504.85

billion465.74billion

RMB

376.12billionRanking of the Fortune
Global 500

173

rd

Customer Satisfaction

93%

250.7824.66

Environmental
Practicesmillion m²

2

nd in the industry

Total Taxes Paid
RMB

53.37

billion100%

Use of Intelligent Construction
Site System for All Projects
under Construction

05

327.91billionmillion m²

The Proportion of Property
Development Projects That Met
Green Building Evaluation Standards
Introducing Renewable Energy Design

48%

The Ratio of Housing Industrialisation
Projects to New Construction Projects

Number of Community Waste
Management Projects

90%

118

Total Number of
Employees

Average Annual Training Hours
per Employee

131,097

25.6

Number of Training Courses that
Were Developed or Updated

Percentage of Female
Employees

2,166

45%

Safety Training Coverage Rate
for Employees and Construction
Contractors

External Donation Amount

Sales Ranked

Sales AmountOperational
Practices

RMB

Sales Area

Revenue
RMB

Cumulative Gross Floor Area (“GFA”) of
Green Building exceededSocialPractices

100%

RMB

hours

117

million06

2023 Sustainability Report

About This Report Report Summary Message Board Statement About Vanke

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Sustainability Performance
Vanke continuously improves sustainability management to create value for customers and society. In 2023, we were highly
recognised in several sustainability ratings and indices.

In 2023, we were also awarded prizes and recognition from governments, industry organisations, media platforms, and the
public, including but not limited to:Hang Seng Corporate Sustainability Index Series
Obtained an A+ rating, maintained the highest rating among domestic real estate developers,and maintained to be includedin the Hang Seng ESG 50 Index and the Hang Seng (China A) Corporate Sustainability Index, as one of the Top 50 ESG

leaders with relatively high market-capitalisation listed in Hong Kong and one of the Top 30 ESG leaders among large A-sharelisted companies; maintained to be included in the Hang Seng Corporate Sustainability Benchmark Index andTop 100 ESG Pioneers of
Listed Companies in China
and Top 50 ESG Pioneers of
Listed Companies in GBA

Top 100 Chinese Listed
Companies in ESG in
the Value Assessment ofChinese Listed Companies

The 5th New Fortune
Best Listed Company-- Best ESG Practiceaward

CCTV Finance

Securities Times

New Fortune

CNI Index ESG rating

MSCI ESG rating

Upgraded to AAA

Maintained BBB with increases in the scores forranked 1st in the industry in terms of environment

green building opportunities as well as productsafety and quality

Corporate Sustainability Assessment(“CSA”) by S&P Global

ESG Risk Rating by Morningstar Sustainalytics

The score of CSA steadily increased

Rating continued to decrease. The ESG performance

ESG Practice

was newly included in the Hang Seng (Mainland and HK) Corporate Sustainability Index

Maintained low risk, and the score of the ESG Risk

Best for ESG in China

Top 1 in Best ESG in Property (incl. REITs) sectorof Core Asia and Chinese Mainland

Asiamoney

Institutional Investor

2023 Asia’s Outstanding Companies“All-Asia Executive Team 2023”

Top 100 Best ESG Practices

Annual Governance
PioneerBest ESG Pioneer AwardWind

NetEase FinanceWind China Listed
Company in 2023

2023 Excellent ESG PracticeCase Selection

Hong Kong Ta Kung Wen Wei
Media Group (HKTKWW) andthe Hong Kong International
ESG Allianceimproved

Evergreen Principal Business, Far-reaching Springhead wasselected as one of theBest ESG Practices of listed companies

by the China Association for Public Companies

07

Meisha Carbon Neutral Pilot Demonstration Community,
which is Transforming from a Small Park to a Big
Community was selected as one of the

Excellent ESG Practices of listed companies
by the China Association for Public Companies in termsof the topic of “carbon emission reduction”

Social Value Creation

Vanke’s ESG case was selected again as one of the Best ESG Practices of listed companies by the China Association for PublicCompanies in 2023.

China Charity Awards

Shortlisted in Enterprise Donation List of Shenzhen
Charitable Donation List

Ministry of Civil Affairs

Civil Affairs Bureau of Shenzhen Municipality082023 Sustainability Report

About This Report Report Summary Message Board Statement About Vanke

Message
A few guiding stars illuminate the road to hope. The past few
years witnessed the inevitable pains we went through as theindustry faced unprecedented challenges in transformation.
Nevertheless, Vanke remains resilient and energetic in the poor
business environment. Vanke has always kept pace with thetimes. We have proactively embraced policies for carbon peaking
and carbon neutrality and aligned ourselves with the UN SDGs
as we march towards sustainable development. Amid the torrentof changes, we have adhered to robust operations, consolidated
the bottom line, and seized development opportunities to draw awonderful blueprint for high-quality development.

As we navigate the path of operational
practices, we constantly delve into enhancing
value creation.
In 2023, we continued to forge ahead in compliant operationand integrate sustainable development into every detail of ouroperations. From product development to service delivery, we
pledge to provide all stakeholders with “good products” and“good services”. We have maintained our focus on residential
properties, emphasizing "quality, health and capability" to craftexquisite offerings. The Good Service Action was promoted byupgrading the service standard from “SOP 1+12” to “SOP 1+14”.
We refined service procedures and enhanced service quality
from contract signing to house acceptance and delivery. We havecontinually optimised our management systems, strengthened
compliance audits and oversight, and persistently elevatedour awareness and management of integrity and compliance.
Furthermore, we have established and refined our information
security management system, ensuring robust information
security for employees, customers, and partners through our“Dragon Wakening Programme” and ongoing enhancements to
information security and privacy protection measures.

In the realm of environmental practices, weare taking the lead in advocating for green
development, positioning ourselves as pioneerin the industry’s sustainability endeavours.
Against the backdrop of a carbon-neutral economy, we havemade green and low-carbon transformation the cornerstoneof our strategic development in 2023 and insisted on theclose integration of environmental responsibility and businessdevelopment. We became a forerunner and demonstrator ofsustainable development. We have actively adopted cutting-edge
technologies, such as near-zero energy-consuming technology,
the Solar photovoltaic, Energy storage, Direct current andFlexibility (“PEDF”) system, and photovoltaic power generation totransform Vanke NEXUS in Jiading, Shanghai, into a future citythat is low-carbon, intelligent, and vibrant. Moreover, we havetaken proactive steps to address climate change by exploring the
economic opportunities and challenges posed by climate change,aligning with the TCFD framework and enhancing our climate
risk management practices. We also continuously optimised
management in green building, green construction, and green
operations, joining hands with our stakeholders to promote green
development and contribute to the planet’s future.

09

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Board Statement
In terms of social practices, we are creating abetter life with all communities.
By upholding a “striving for the best as a team” culture, we offer
a workplace environment grounded in equality, respect, inclusive,and diversity, providing unlimited possibilities for the growth anddevelopment of every employee. Vanke, in 2023, continued the“Talent Training Plan of the Group”, highlighting specialisation
and Vanke’s characteristics, and implementing a “3+1” training
management system to empower grassroots employees topursue self-improvement and continuous learning. In tandem,
we advocated a “win-win partnership” and implemented thephilosophy of sustainable development. Through AUPUP, we
are creating a new ecosystem for the upstream industry chain
and driving the transformation of the industry’s supply chain.
Furthermore, Vanke promoted “shared development” and shared
its development results with society. We also actively engaged
in rural ecological revitalisation, endeavoured to promote thebuilding of a healthy China, and made concerted efforts toestablish a resilient community of shared interests.
In 2023, our ESG performance garnered extensive recognition
from rating and index agencies globally. We extend our heartfelt
gratitude to all of you for your support and encouragement on oursustainability journey. Vanke obtained an A+ rating from Hang
Seng ESG Rating, maintaining its position as the highest-rated
domestic real estate company. We continued to be featured
in prestigious indices such as the Hang Seng ESG 50 Index,
the Hang Seng Corporate Sustainability Benchmark Index, theHang Seng Stock Connect A Low Carbon Index, and the Hang
Seng (China A) Corporate Sustainability Index, as one of theTop 50 ESG leaders with relatively high market-capitalisation
listed in Hong Kong and one of the Top 30 ESG leaders amonglarge A-share listed companies. Meanwhile, we obtained the
AAA rating of the CNI Index ESG rating of the Shenzhen Stock
Exchange, which ranked first in the environment in the realestate sector and was included in the Shenzhen 100 ESG Top
Index. Our MSCI ESG score and rating led the industry, and our
ESG Risk Rating by Morningstar Sustainalytics remained lowrisk. Moreover, our case study, Evergreen Principal Business,
Far-reaching Springhead, was once again recognised as one of
the Best ESG Practices of listed companies. Vanke’s accoladesalso include being named “Asia’s Outstanding Companies Poll
2023–Best for ESG in China” by Asiamoney, securing the top
spot in the “All-Asia Executive Team 2023” Ranking for Best
ESG by Institutional Investor, and being included in the Top 100
Chinese Listed Companies in ESG in the Value Assessment ofChinese Listed Companies by Securities Times. We were also
honoured with the 5th New Fortune Best Listed Company-Best
ESG Practice award.

Based on the requirements of the Listed Company Governance Standards issued by the China Securities Regulatory
Commission (“CSRC”) and the Environmental, Social and Governance Reporting Guide issued by the Stock Exchange of Hong
Kong, the Company and the Board have heavy involvement in the environmental, social and governance (“ESG”) affairs andactively integrate ESG into the Company’s business practices. In 2019, the Board reviewed and clarified the ESG management
system and the ESG work responsibilities to ensure that sustainable development issues facing Vanke would be gradually
incorporated into the Company’s agenda.
As the highest decision-making body, the Board is fully responsible for determining the Group’s ESG management structure
and management strategy, ensuring that appropriate and effective ESG risk management and internal monitoring systems arein place, listening to the results of discussions on material ESG issues and supervising the progress of ESG objectives, andreviewing and approving the annual sustainability report of the Company.
In addition, the Company set up an ESG Working Committee which is chaired by the Chairman of the Board. The ESG Working
Committee is responsible for confirming the results of materiality assessments, determining the ESG management objectives,
policies and implementation approaches of ESG, and evaluating and identifying material ESG management issues such as
ESG-related risks and opportunities. Our routes and achievements in products and services, climate change response, carbon
emissions and other aspects created through the ESG management work will be reviewed and approved by the Board andreleased in the sustainability report of the Company.
Complying with the Environmental, Social and Governance Reporting Guide issued by the Stock Exchange of Hong Kong, theCompany set key ESG targets covering greenhouse gas emissions, waste management, and resource use. The Board has
reviewed and discussed the relevant target setting and progress.
The 2023 Sustainability Report of the Company was reviewed and approved by the Board on 28 March 2024.

Great achievements descend from great aspirations; extensive
business owes to diligence. Vanke will stay true to its founding
aspirations, continue to pursue the mission of creating a better
life for society and advance steadily on the road to sustainability.
Together with cities and customers, we will continue to create
enduring value for all stakeholders.

102023 Sustainability Report

About This Report Report Summary Message Board Statement About Vanke

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

About Vanke

Property services

Company Overview
Company profile
China Vanke Group Co., Ltd. was established in 1984. After 40 years of development, it has become China’s leading city andtown developer and service provider. The Group focuses on the three most vibrant economic circles nationwide and key cities inMidwest China. In 2023, Vanke was ranked 173rd on the Fortune Global 500 companies.
Vanke persistently provides the general public with good products and services and satisfies people’s demands for a better
life with its best efforts. Until now, the ecosystem it has been constructing is getting into shape: In the property area, Vanke
has always adhered to the policy of housing residence instead of vicious speculation and upheld the vision of “building quality
housing for ordinary people to live in”. While consolidating its existing advantages of residential property development andproperty services, the Group’s business has been expanded to areas such as retail property development and operations, longterm rental apartments, logistics and warehousing, and hotel and resort. With the above superiority, a solid foundation has
been better laid to satisfy people’s needs for a better life and to achieve sustainable development. Vanke has always adhered
to the policy of "sticking to follow the fundamental rules of the world and striving for the best as a team. We centre on “people’s
demand for a better life”, and deeply implement the development strategy of “being a city and town developer and service
provider”, based on cash flows. Meanwhile, we constantly create real value and endeavour to become an outstanding enterprisein the great new era.

Onewo Space-Tech Service Co., Ltd. (“Onewo”, stock code: 02602.HK) pioneers and innovates the property services industry
in China. 33 years ago, Onewo kick-started the journey with the simple purpose of pursuing delightful property services formore people - a purpose which still guides the way we operate today. Drawing on exceptional brand strength and service
quality, Onewo has become a leading omni-space service provider with an unmatched growth model built upon the synergy ofbusinesses across community, commercial and corporate property, and urban space. Onewo’s market-leading position is closely
associated with its self-driven culture. Through AIoT and BPaaS solutions, Onewo realises “Remote & Hybrid” operations,
thereby improving the efficiency of the spaces we serve for customers.
For the annual ESG performance of Onewo, please refer to the 2023 ESG Report of Onewo.

As of 31 December 2023, Onewo has covered

621
4,658
2,531

Onewo Towns

Business landscape
Vanke centres on people’s demand for a better life and expands its business to rental housing, retail property development andoperations, and logistics and warehousing while consolidating its core business of property development and property services.
With the strategic positioning of “being a city and town developer and service provider”, Vanke is committed to provide setting toa beautiful life, to contribute to the economy, to explore creative experimental fields and to construct a harmonious ecosystem.

residential property service1 projects

commercial property service1 projects

1

 he numbers of residential property services and commercial and corporateTproperty services projects are taken from the calibration of contracted projects as of
31 December 2023.

Property development
In terms of property development business, Vanke attaches
great importance to people’s demand for a better life, centres on
the positioning of “being a city and town developer and service
provider”, focuses on “good products” and “good services”, andadheres to the full-cycle and full-category development andoperation strategy. With business activities involving multiple
fields such as comprehensive residential areas, EPC (Engineering
Procurement Construction) and agency construction, urban
revitalization, and TOD (Transit Oriented Development), we arecommitted to continuously improving urban living quality andgrowing together with cities and customers.

In 2023, the property development businessachieved:
Sales Area of

24.66
376.12
2
289,000
million m²

Sales amount of RMB
Sales Ranked

billionnd in the industry

Quality Delivery ofunits

Shanghai Jiading Vanke NEXUS—Super intersection

1112

2023 Sustainability Report

About This Report Report Summary Message Board Statement About Vanke

Logistics and warehousing

Rental housing

VX Logistic Properties (“VX Logistics”) is a platform to provide logistics and warehousing services and integrated supply chain
solution in Vanke, and aims at providing enterprises with integrated logistics services with high standards, diversity, multitemperature zones through warehousing products in different forms, warehouse operations, main lines, and intra-city distribution
resources. Since 2015, VX Logistics, has started its national warehousing network layout. Currently, its comprehensive strengthis among the first echelon in the industry, and its cold chain warehousing scale ranks first in China.
In 2023, VX Logistics adhered to the mission of becoming“an industry-leading integrated logistics service provider” andcontinued to improve systematic and intelligent managementin multiple dimensions such as safety, quality, efficiency,
and energy consumption. VX Logistics has obtained LEED
Platinum and Green Warehouse 3-star certifications forseveral parks, with the new green building certification area of
3,190,500 m² in 2023.
VX Logistics formulated the Guide to LEED Standardised
Design to ensure that parks met green building requirements.
It improved energy saving and consumption reduction in park
operations, and promoted 100% green warehouse certificationand 100% coverage of distributed photovoltaics for all new
cold storage.

As of 31 December 2023, for logistics andwarehousing business

As of 31 December 2023, Port Apartment
Has had a presence in

10.02

million m²

long-term rental apartmentswith a total of

million m²

million m²

The Shanghai Fengxian Lingang Logistics Park of VX

233,300

180,000

3.6

high-quality rooms

millionPort Apartment, which has had a total of

101,500

147

projects

housing units, were officially

included in the affordable housing system

The leasable GFA of cold chain warehouses was

1.5

cities across China

It operated and managed more than of

platform reachedThe leasable GFA of high-standard warehouses was

8.52

31

The accumulative number of registered users on the online

the accumulative leasable GFA of projects opened was

The Shanghai Fengxian Lingang Logistics Park, VX Logistics’s first pilot park of carbon management platform, opened
on 18 April 2023. It is the first logistics park in China to be certified as a net-zero carbon building project under the netzero carbon building certification system of TÜV Rheinland and the Building Research Establishment (“BRE”). The
digital carbon management platform identifies, records, and manages carbon emissions, analyses and optimises highemission processes, enables effective identification and control during operations, and promotes the implementation andoptimisation of net-zero carbon.

13

Port Apartment is a long-term rental apartment brand owned byVanke and China’s largest provider of centralised apartments.
It offers one-stop living options to young urban customers
with taste and energy. Port Apartment provides a “convenient,
comforting, healthy and energetic” high-quality living spaceand creative fashion life in accordance with the different living
and work expectations of young clients.

and opened more thanThe Shanghai Fengxian Lingang Logistics Park of VX | Creating the First Pilot Park of Carbon
Management Platform

To manage carbon emissions, a real-time carbon
monitoring screen was established in the park.
It consists of a PV power generation module(monitoring accumulative power generation,
accumulative carbon reduction, power of daily
real-time PV power generation, and recent PV
power generation trends), an energy consumption
module (analysing monthly energy consumption
and its corresponding carbon emissions, and aranking of the carbon emissions of each item (e.g.
refrigeration, forklifts, and lighting), so the park’s
carbon emissions can be monitored in real-time.
Meanwhile, it tracks the energy efficiency of the
distributed PV system on a time-to-time basis tofacilitate the formulation of emission reduction
strategies.

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

ranking
Port Apartment

housing

1stin the industry by the number of affordable

The Port Apartment and Shenzhen Water and Environment Group Co., Ltd. Project for“transforming non-residential to affordable residential properties”
Port Apartment actively responds to the national policy by participating in the construction and operations of affordable
rental housing through multiple channels and methods. Port Apartment and Shenzhen Water and Environment Group
Co., Ltd. (“Shenzhen Water”) began to cooperate in 2023 by providing integrated and full-cycle services, covering frompreliminary planning, positioning, and design to construction and operations, to transform the Nanshan Office Building into
guaranteed rental housing. All 206 affordable residential rental houses of the project had been rented before opening, mainly
by talent from nearby high-tech enterprises in communications, computers, software, pharmaceuticals, new materials,
and optoelectronics. It aims to become a high-quality rental community that is “live close, affordable, and good” for young
talents. The project has gained significant attention from the government and media as the first project of “transforming nonresidential housing to affordable residential properties” that has been launched and put into operation in Shenzhen.

Shenzhen Water-Port Apartment in the Eco-Software Park14

2023 Sustainability Report

About This Report Report Summary Message Board Statement About Vanke

Retail property development
and operations
Vanke’s retail property development and operations businessincludes shopping centres, community commercial andother business forms. The Group issued an announcementon the establishment of the Commercial Business Group(“Commercial BG”) in January 2024 to take charge of theGroup’s operations and management of retail property
business. SCPG is the Group’s professional retail property
development and operation capability platform. Upholding
the “green ecology” and “customer-centric” ethos, SCPG
continues to add genuine value for customers and merchantsand offer quality experiences regarding people’s demand
for a better life by constantly strengthening its retailproperty resources, business platforms, and development
management. It takes up the green and low-carbon innovation
mission to contribute to the promotion of urban construction
and consumption upgrading. SCPG made a breakthrough inthe public offering of REITs. In March 2024, the offline priceinquiry of “China International Capital Corporation LimitedSCPG Consumption-Related REIT” (“CICC-SCPG REIT”),
which regards the quality project, Hangzhou Xixi INCITY, as
the underlying asset, was completed.

Hotel and resort
Vanke hotel and resort business operates projects in core cities suchas Shenzhen, Guangzhou, Suzhou, and Hangzhou as well as tourist
destinations such as Mount Huang and Lijiang. Vanke Group’s all hotel andresort assets as well as asset management, operation management, brandmanagement, and consultancy related to hotels and resorts are covered,including the V·SKI Ski Resort and Vanke Group’s own brands-Yun, Yun
Collection, and Youxiong.

As of 31 December 2023, for retail property
development and operations business,203

retail projects were opened in total

The opened GFA amounted to

11.58

million m²

The retail GFA under planning and construction was
million m²
Specifically,

74

3.05

retail projects were opened by SCPGThe opened GFA was

7.14

million m²

The ski resort and vacation project are integral to Vanke’s hotel andresort business. V·SKI is China’s most extensive mountain and ski resort
brand. During the 2023-2024 winter season, it operated 4 ski resorts and68 ski trails in total, including Vanke Songhua Lake Resort, Shijinglong
Ski Resort, Xishan Ski Resort in Beijing, and Mawanshan Ski Resortin Hohhot, and managed the ski schools of four ski resorts in Chongli,
Chengde, Shuozhou, and Yanqing, Beijing. During the reporting period,
Vanke Songhua Lake Resort was granted 2023 China’s Best Ski Resort by
the World Ski Awards for the seventh consecutive year.

As of 31 December 2023, hotel and resort
business
Has held and managed

68

33

hotels in operation

ski trails

has received

730,000

visitors of the ski

resort and vacation project in 2023

The retail GFA under planning and construction was

710,000

m²

The LONGHUAHUI commercial complex | A cultural and tourism business card integrating ancient
heritage and modern culture
The LONGHUAHUI commercial complex is a new commercial consumption scenario jointly developed by SCPG and its
partners. Designed to be an ideal urban block that inherits the millennium history of the Longhua Temple, it embodies the
Jiangnan and Shanghai-style cultures while integrating folk tales, contemporary culture, youth fashion, and green ecology.
The existing buildings in the original Longhua Tourist Town were renovated to meet modern needs.
Construction
phase

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

History is respected. The architectural style in the Yangtze River Delta was extended through thedesign of heavy eaves and sloping roofs and the use of glass and stones. Green landscapes,
waterfront scenery, and public artworks were created to blend tradition with modernity.

Overseas
Since 2012, Vanke has been gradually developing our overseas business. Vanke has set up Vanke Overseas Investment
Holding Company Limited (stock code: 01036.HK) in Hong Kong, China, and has entered the US, Singapore, the UK, and othercountries successively, operating in real estate investment and development, asset management, and other business in many
major international cities. In response to the market characteristics of different regions, Vanke selects partners with independent
development capability and sound reputations to cooperate in overseas markets, and always practised the Group’s strategic
positioning of being “an urban construction and service provider” and is committed to providing better products and services tosociety and customers.

To promote local culture, the “Amazing Longhua Temple Fair” was held, a cultural experience
activity for the downtown area that was inspired by the notion of “meeting on the street”.
Operationand publicity
phase

A wide range of innovative, first-of-its-kind brands, based on Chinese culture and local lifestyle,were introduced to highlight the local culture.

The LONGHUAHUI commercial complex

15

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Topic of the Year2023 Sustainability Report

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Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Creating an Ideal Future City
The core philosophy of NEXUS: Low-carbon, smart,and vibrant
Vanke NEXUS（Nature, Energy, Xanadu, Units, and Society）in Jiading,Shanghai, represents the culmination of Vanke’s exploration, research, andimplementation of a sustainable development model for a future city. The
project’s overall plan follows the philosophy of sustainability. Adhering to
Jiading’s positioning as one of the five new “independent and comprehensive
node cities”, the project is aimed at transforming Jiading into an idyllic andfuturistic living unit.
By situating the NEXUS project in Jiading District, Shanghai, Vanke intends to build a future citycharacterised by low-carbon, smart, and vibrant elements through diversified and open planningand design, energy-conservation and environmentally friendly construction technologies, and smart
management, operations and maintenance. The project has fully shifted into the construction phase,with some buildings already achieving structural completion. To meet the requirements of a future highdensity conurbation, we have established a business form consisting of four business segments: life,
culture, sports, and government-business partnerships. Furthermore, we strive to build a model in lowcarbon and near-zero-carbon communities through building energy conservation, renewable energy
utilisation, and solid waste recycling.
In addition, the NEXUS project has been included in multiple international and domestic technicaldemonstration projects, including the Sino-Swiss Zero Carbon Building Demonstration Project jointly
initiated by the Ministry of Housing and Urban-Rural Development of China and the Swiss Agency
for Development and Cooperation (“SDC”) and two national key R&D programmes in the “14th FiveYear Plan” period, specifically, Chunxi (Market), as a pilot project for the “Zero-Carbon Building Control
Indicators and Research and Application of Key Technologies” project included in the national “14thFive-Year Plan”, is one of China’s first near-zero-carbon buildings. It serves as a pilot endeavour forthe national “14th Five-Year Plan” project “Research and Demonstration of Direct Current Products forElectromechanical Equipment for Buildings”, demonstrating the first-time application of the cutting-edge“solar photovoltaic, energy storage, direct current and flexibility” (“PEDF”) system in block business format.

Business
Scenarios
Diverse Business Forms
Composite Space
Public Value
Urban Density

Low-carbon: Building a Sustainable City
through Innovative Carbon Strategies
Creating a Model in Low-carbon and Near-Zero-Carbon Communities
Through a range of technical measures, including building energy conservation, renewable energy utilisation, water
conservation, and solid waste recycling, Vanke strives to transform NEXUS in Jiading, Shanghai, into a globally low-carbon andpartially near-zero-carbon community, allowing for a carbon emission reduction of 31% and 40%, respectively.

Building Energy Conservation
Low-carbon materials, such as low-carbon steel and recycled concrete aggregate (“RCA”),
are used on a pilot basis for the exhibition hall. Additionally, a steel-wood composite structureis used for the buildings in Chunxi (Market). Their roofs are equipped with a wooden structure.

Applicationof low-carbon
materials

Low-carbon materials such as wooden structures,short process steel, and recycled concrete areused, with a full-cycle carbon footprint certificate

Kindergarten
Kindergarten
SportsCentreCommunityCentreFuture Office

Climateresponsive
designThe atrium of Chunxi (Market) was turned into a “climate regulator”, with appropriate shading,lighting, ventilation and air-conditioning strategies for different seasons and weather.

Passivecarbonreductiontechniques

A variety of passive technical measures, including the high-performance building envelope,high air tightness control, and the thermal bridge-free design, have been adopted to increase
the thermal performance of the buildings.

Active carbon
reductiontechniques

Active technical measures, such as improving the energy efficiency of air conditioning
systems, increasing the heat recovery efficiency of ventilation systems, and optimising thedomestic hot water conservation programme, have been implemented to reduce the total loadand overall energy consumption of the buildings.

Future Market

Residential Housing

Future Exhibition
Hall

Service-oriented Apartments

Vibrant Block

Commercial and office17

Concrete aggregates fromrecycled construction waste

Panoramic View of NEXUS in Jiading18

Topic of the Year2023 Sustainability Report

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Renewable Energy Utilisation

Application of Clean Water Heating Technology

Photovoltaic power generation

To meet the local community’s needs, a temperature-controlled swimming pool has been constructed beneath the sports
centre in the Shanghai Jiading NEXUS. Furthermore, to address the issue of high energy consumption typically foundin temperature-controlled swimming pools, we have implemented photovoltaic-thermal integrated technology alongsidea dehumidification heat pump. This system collects waste heat for pool heating, and combined with photovoltaic power
generation, supplies clean energy that surpasses the energy consumed for pool heating and hot water for showers.

Approximately 40% of the roof area across theregion is equipped with photovoltaic panels,
expected to generate 2.57 million kWh ofelectricity per year, reducing carbon emissions
by 1,080 tCO2e per year.

Technical Highlight 1

PEDF technology
The “PEDF” system, implemented for the
first time in Chunxi (Market), features a blockbusiness form. This form enables photovoltaic
power generation to meet 50% of the energy
needs of the buildings, converting buildings
from energy consumers into integrators that cangenerate, store, regulate, and use energy.

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Technical Highlight 2

Guiding Roof Design Towards an Optimal Balance among
Daylighting, Ventilation, and Photovoltaic Power Generation

Collecting Waste Heat for Pool Heating

Solar Irradiation

Rooftop Photovoltaic Panels

Waste Heat
Conduction BandElectricity
OutputSolar Cell
PhotonWater Conservation
Rainwater reusetechnology

This technology ensures that the utilisation rate of unconventional water
resources is at least 5%, with rainwater reused for greenery watering and roadcleaning.

Waterconservation
facilities

These facilities improve the efficiency of the water supply pipeline network
and are fully equipped with water-conservation devices. They include outdoor
greenery watering devices and indoor water-conservation devices.

Waterconservation
measures

Each water use sub-item is calculated to achieve detailed management ofwater resources.

Solid Waste Recycling

On-sitetreatment offood waste

19

The distributed on-site resource-based treatment equipment for food waste
and advanced biostrains are used to process food waste, which is projected
to be 730 tons annually. By projection, this process will produce 36.5 tons oforganic fertilisers and contribute to a reduction of approximately 21.9 tCO2 incarbon emissions.

Recycledbuilding
materials

The recycled concrete aggregate and short-process steel made fromconstruction waste are used on a pilot basis for non-structural load-bearing
sections of the exhibition hall. This minimises the environmental impact ofwaste building materials while ensuring safety.

Zero-waste
livingAdhering to Vanke’s zero-waste philosophy, the community allows residents toengage in zero-waste living anytime and anywhere. Specific measures include
encouraging suppliers to adopt waste sorting and promoting commercial
household food waste recycling and reuse.

Annual Irradiation at a 30°
Roof Angle

Annual Irradiation at a 25°
Roof Angle

Annual Irradiation at a 20°
Roof Angle

Annual Irradiation at an 18°
Roof Angle

Annual Irradiation at a 15°
Roof Angle

Inflation Collector/
Evaporator

Roof Design Programmes from Multiple Angles

5,052

252,600
160,600
49.15

tCO2e per year, roughly

fully-grown trees.

equivalent to the contribution made by

The Xinxin (Exhibition Hall) building is projected to save

133.84Heat Output

Diagram of Waste Heat Collection

The entire site design contributes to a carbon emission reduction of

reduction of

Valence Band

Working Fluid

Highlight data

equivalent to a yearly saving of

Waste
Heat

kWh of electricity every year,

tons of standard coal, leading to an estimated carbon emission

tCO2e per year.

419,000
120.69176

The Chunxi (Market) building is projected to saveproject contributes to a total saving of

expected carbon emission reduction of

kWh of electricity every year. The

tons of standard coal per year, resulting in an

tCO2e per year.

Zero-carbon Cloud Living
Vanke aims to promote digital applications for individual low-carbon behaviours through its NEXUS project in Jiading, Shanghai.
The project is linked to open-source behavioural data and allows for independent data upload. Throughout the project, wehave introduced carbon credits to quantify individual low-carbon behaviours, which are tied to community services. Community
residents can accumulate carbon credits through consumption and enjoy carbon emission reduction rewards. This incentive
aims to promote a sustainable low-carbon lifestyle.

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Topic of the Year2023 Sustainability Report

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Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Smart: Driving Intelligent Management by
Building Digital Units

Vibrant: Dynamic Energy Drives the Buildingof a Small-Scale Block in Shanghai

Holistic Smart Integrated Control Platform

Embrace Nature in the Community

Vanke’s NEXUS project in Jiading, Shanghai, is equipped with a holistic smart integrated control platform
empowered by digital twin technology. This platform integrates intelligent, information-based, green, andurban development across five domains: regional planning, energy conservation and carbon emission
reduction, holistic security, regional governance, and smart operations and maintenance. It supports
intelligent urban management and operations.

Smart Operations
and MaintenanceRegional Planning

Holistic Security

The advanced geographic
information system (“GIS”)
technology is utilised to visualiseurban planning schemes

An intelligent AI-assisted systemfor video analysis is integrated
to facilitate a comprehensive
security system within the region

The operating status of softwareand hardware is monitored inreal-time, achieving full-lifecycle
management of facilities andequipment.

Jiading NEXUS reincorporates rural ecology, which became an afterthought as a result of urbanisation, back into the community.
It incorporates multiple natural settings, including outdoor, indoor, and aquatic settings, small greenhouses, and farms.

We have introduced
food source plants andestablished ecological
stepping stones in thecommunity to attract
butterflies and birds.

To foster deeper relations
between human beingsand nature, accessible
lawns and touchable exotic
plants are incorporated into
the layout.

Green ecological spaces are a feature of the design,with 40% of lower-level roofs being green roofs, andvarious ground areas serving as miniature parks
and community gardens. This has provided thecommunity with green activity spaces, creating a
fresh and accessible environment for relaxation.

Smart Integrated Control Platform
Intelligent, information-based, green, and urban development
Rendering of NEXUS in Jiading, Shanghai

Biodiversity Conservation: Four Key Dimensions:
Energy Conservation
and Carbon Emission
Reduction

Regional GovernanceAn intelligent energy
management platform allows
detailed management ofenergy consumption, creating acommunity carbon database

Residents can access a varietyof online and offline services
across the region using their
ID cards, fostering an inclusive
service-oriented community

The integrated control platform, based on holographic geospatial data, leverages the GIS + building
information modelling (“BIM”) + Internet of Things (“IoT”) technologies to connect data across various
business systems, creating a three-dimensional, visualised urban operating system. By connecting dataislands and increasing the efficiency of data utilisation, this platform transitions from individuals searchingfor information to information-seeking individuals, significantly boosting the efficiency of park operations andmaintenance. Moreover, this platform incorporates an intelligent decision-making support system, providing
city administrators with more precise and timely decision-making support and services.

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Safeguard endangered
plants and protect species
diversity
Vanke has joined hands with botanicalgardens to conserve national firstand second-class protected plants
and explore methods for sustaining
plant diversity.

Utilise new varieties
for innovative businesspurposes and vegetation
New plant varieties are selected toform micro botanical gardens andother new planting initiatives.

Showcase typical seasonal landscapes in
Jiangnan (south of the lower reaches of the
Yangtze River) and promote local varieties
Local plant varieties are given priority
in vegetation planting and layout toshowcase different landscapes acrossthe seasons, infusing the landscapeswith vitality and relevance.

Form a friendship with time
as plants grow
Vanke has launched the “Yellow Hat”
campaign to foster closer relations
between human beings and nature,providing adolescents with newexperiences of plant exploration.

“Yellow Hat” Campaign: A New
Experience of Plant Exploration

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Topic of the Year2023 Sustainability Report

About This Report Report Summary Message Board Statement About Vanke

A Convenient and Comfortable Shared Community
Adhering to the “ten-minute ideal units” goal, NEXUS in Jiading, Shanghai, takes into full consideration of acommunity’s developmental needs to construct a small-scale block featuring diverse business forms.

Public spaces, green
landscapes, and leisureamenities are incorporated
to provide a platform
for interaction andcommunication amongcommunity residents

Create sharedspacesOrganisecommunity
eventsRegular cultural festivals,
art exhibitions, and concerts
are organised to enrich
residents’ cultural lives,enhance communication andcooperation among business
forms, and increase thecommunity’s vitality and appeal

The NEXUS Model epitomises future life via four pavilions designed to demonstrate green and cultural
vitality and strengthen community cohesion and dynamism.

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Comprehensive Vanke Healthy Residence System
Vanke takes into consideration both living quality and health and safety when designing residences. We also focus onenvironmental indicators, such as air, noise, sensory comfort, water quality, and lighting.

Air

Sensory comfort

Sound

We adopt formaldehyde-free wooden base materials, reducing formaldehyde emissions byapproximately 79% compared to national standards. A bidirectional heat recovery ventilation system
is employed to ensure a supply of 30 m³/h of fresh air per capita even when the windows are closed,
a reduction of 95% in outdoor pollution infiltration, and the recovery of over 70% of exhaust heat.

The external wall uses PU core insulation and aerogel thermal insulation materials, reducing heatloss by over 50%.

The use of triple-glazed, double-chambered glass reduces outdoor noise transmission through thewindows, creating a quiet indoor space.

Additionally, safety-related factors are considered during the design of the public spaces of the NEXUS project.

The Four Pavilions of NEXUS

Maoyu Road | Ground-Level Design and Early Warning Control Technology

Jiading NEXUS enables time-based control for Maoyu Road, a central urban area. This flexible design allows weekday
traffic and weekend markets. With regards to road design, we value the feelings of seniors, children, and pets. As
such, we have incorporated gentle curbs and differentiated paving methods to ensure a seamless transition among
non-motorised vehicle lanes, motorised vehicle lanes, sidewalks, internal spaces, and tree pits. At intersections, wehave installed roadside system modules, including sensing devices, positioning devices, and communication devices
to support early warning control, such as green wave roads, road information dissemination, smart traffic monitoring,
collision warnings for vulnerable road users, and alerts for road hazards.

23

Chunxi

XinxinA future market with climate regulation functions

A future exhibition hall for urban cultural curationand exploration

GulangTaoran

A community activity centre with access to lawns
and diverse community events

A novel community centre revolving around “healthand growth” jointly established by the government
and enterprises

Rendering of the Versatile Road24

Topic of the Year2023 Sustainability Report

About This Report Report Summary Message Board Statement About Vanke

Building a Beautiful and Shared FutureHome
To apply the philosophy of sustainable development, Vanke has been
devoted to a “zero-waste” management model since 2005. To this end,
Vanke has advanced waste sorting in all respects across residential
communities, hotels, and the Company’s offices. Drawing upon Vanke
Foundation’s expertise and public welfare resources, the Company has
joined hands with government agencies, non-profit organisations, andbusinesses to explore and promote new technologies and approaches
regarding solid waste management. In the strategic cycle from 2023 to
2027, we remain committed to deepening our exploration of the “zerowaste” model in areas such as carbon-neutral communities, cultural
tourism, and cultural fairs. By accumulating experience in zero-waste
governance and providing guidance and exemplars for the public andsociety to engage in “zero-waste” initiatives in various scenarios, we
aspire to make concerted efforts with all walks of life to build a beautiful
and shared future home.

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

From our extensive experience in office scenario governance, we have distilled “eight steps at three stages regarding zerowaste offices.” Our goal is to provide a reference for businesses intending to implement zero-waste offices.
Stage I: Initiation of infrastructure construction
For all members, including senior executives and responsible persons,
we have improved the zero-waste infrastructure in three areas: hardware
facilities, implementation process, and expansion of channels.
a. Initiation: Organising a kick-off meeting for the zero-waste office initiative.
b. Hardware adjustments: Reducing, modifying, and adding waste bins.
c. Prioritising source reduction and reuse of materials.

Scan the QR code toaccess the 2022 Vanke
Foundation Annual
Reportd. Unblocking external disposal channels.
Stage II: Promotion and mobilisation
We have issued guidelines or policies related to zero-waste office andconducted publicity and training sessions to guide employees to change
their perceptions of waste.
e. Preparation and distribution of the Zero-waste Office Employee Manual.

Starting from Vanke Ecology
Zero-waste Office
Vanke has initiated our zero-waste office campaign since 2019 and produced the Zero-waste Office
Employee Manual. We insist on promoting practice with management, clarifying waste-related incentives
and penalties, and boosting standardised zero-waste office behaviours. Furthermore, we have deepened
our understanding of environmental philosophy with regard to the zero-waste campaign. We have taken
a range of measures, such as upgrading the equipment of waste separation bins and centralised waste
collection points in office parks and carrying out Vanke zero-waste environmental protection activities, topromote the implementation of zero-waste office initiatives.

f. Promotion and training.
New Office “Zero” Sense – Zero Waste
Office Handbook

Stage III: Achievement consolidation and deepening
We urge all parties to focus on the recording and tracking of facts and data
after the launch of the zero-waste office, and carry out timely analyses,
assessments, feedback and improvements.
g. Progress tracking and recording.
h. Ongoing refinement.

Based on Vanke’s hands-on experience in zero-waste offices, Vanke Foundation has summarised Vanke’s experience andcases in an action guide titled “New Office “Zero” Sense – Zero Waste Office Handbook”, which has served as an invaluablereference for over 490 businesses and public institutions nationwide to advocate and promote zero-waste office practices
within their respective organisations.

Zero-waste Hotel
Since 2021, Vanke Hotel and Resort BU have implemented zero-waste
management principles and formulated the Zero-waste Hotel Management System,
which incorporates the zero-waste philosophy into rules and assigns responsibilities
to specific positions, making zero-waste tasks a part of responsibilities.
We have also established a zero-waste management system and set up the
Zero-waste Team consisting of a Chief Environmental Officer, Executive Officer,
Secretary General and team members, in a bid to enforce zero-waste hotelmanagement practices. We are committed to converting the zero-waste philosophy
into specific measures and incorporating the philosophy into all aspects of routine
operations with long-term execution and continuous refinement. In 2023, 11 hotels
implemented self-examination and specialised management by applying designand operation guidelines and self-assessment checklists to achieve full coverage ofzero-waste management.

25

11

hotels implemented self-examinationand specialised management byapplying design and operation guidelines
and self-assessment checklists tofull coverage ofzero-waste management
achieve

26

Topic of the Year2023 Sustainability Report

About This Report Report Summary Message Board Statement About Vanke

Yun Resort Shenzhen Longcheer “Zero-waste Hotel” ProjectDue to their business model as temporary residences, hotels frequently witness the use andwaste of disposable items, making them one of the significant scenarios for the generation ofhousehold waste. The Yun Resort Shenzhen Longcheer, with a centre on source reduction
and waste sorting, fully encouraged employees and customers to reduce waste and exploredpractical and effective zero-waste hotel plans.

Sourcereduction

The hotel no longer
provided disposable
items in guest rooms
by default. Multiple
supplies in guest
rooms were replacedby reusable or largebottle alternatives.

Waste sorting

Zero-waste Community
In urban residential communities, the Vanke Foundation supported socialorganisations to carry out waste sorting and reduction in 59 communities
across six cities in 2023. These projects have covered over 160,000 urbanhouseholds across more than a thousand activities, with participation fromover 70,000 individuals. They also nurtured over a hundred volunteer
groups and more than 800 resident volunteer backbones. The Vanke
Foundation made efforts to closely integrate waste sorting with community
environmental improvements and community governance. A collaborative
approach involving five communities was adopted to innovate primary-levelcommunity governance content and methods.

These projects have covered over

160,000

urban households

Spring Mud Action: Sustainable Transformation of Waste in Residential Communities

Disposable toiletries were no longer
proactively provided

The hotel conducted
upgraded zoning of
the garbage room,
introduced sterilisationand cooling devices in
the food waste zone,
and arranged compost
bins in the green areas
to promote the on-siteresource treatment offood and green waste.

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Since 2020, the Vanke Foundation has collaborated with China Agricultural University, Beijing University of Agriculture andthe Environmental Committee of Vanke Service Quality Management Centre to establish the “Spring Mud Action” initiative.
The Vanke Foundation boosts waste sorting and transformation efforts across communities through aerobic composting oforganic waste and soil improvement in urban green areas.
The Vanke Foundation has selected 12 residential communities in 11 cities nationwide as pilot projects, focusing on
aerobic composting of organic waste and soil improvement in urban green areas. With a focus on the philosophy of “adopting
aerobic composting to transform organic waste into soil amendments and improve the soil quality of urban residential
communities”, the Vanke Foundation aims to drive effective household waste sorting in communities, assist in on-siteorganic waste transformation, and support the technical advancement of property management personnel.

A compost station set up under the big banyan
tree, including compost bins and transfer cages
for temporarily storing green waste

For employees, the hotel has formulated the Zero-waste Hotel Policy of
the Yun Resort Shenzhen Longcheer to emphasize the management
procedures of harmful waste and waste ledger, incorporating the zerowaste philosophy into rules and job responsibilities.
For customers, Shenzhen Yun Resort Shenzhen Longcheer conducts
publicity and interaction with customers in terms of the zero-waste
concept through promotional materials and campaigns.
Zero-waste
encouragement

By the end of the reporting period, Vanke Service had made continuous progress under the guidance of the “Spring Mud
Action”. Over 200 residential communities nationwide have achieved sustainable management of organic waste and soil
improvement to date. A total of 4,662.8 m³ of green waste has been processed and utilised, resulting in the production of
2,331.9 m³ of high-quality compost. Additionally, the soil quality of nearly 10,000 m² of green spaces has been improved.

In addition, the Vanke Foundation has observed
the immensely useful practical experiencethat has developed. It collaborated with the
Beijing Woqi Foundation, Chengdu Urban
Rivers Association, and Kunshan Lucheng
Huanbaoshe to jointly compile the Community
Self-Organisation Cultivation and Community
Food Waste Composting practical manuals,
providing operational guidance for frontline
community organisations.

od
ity Fomun posting
m
o
C
m
e Co
Wast
ual]
a
[M n

Community Food
Waste Composting

Community
Self-Organis
ation
Cultivation[Manual]Community Selforganisation Cultivation

A sign board is placed at the front desk to inform that “the hotel no longer
provides disposable items”.

27
27

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Topic of the Year2023 Sustainability Report

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Convey the Zero-waste Impact to Communities
Contribute to the Development of Carbon Emission Reduction
Methodologies
The Vanke Foundation has been continuously exploring biologically-based approaches for treatingorganic waste. By leveraging technologies such as black soldier fly food waste treatment andcommunity garden composting, the foundation provides on-site resource treatment of organic waste
in the Dameisha Carbon Neutral Experimental Zone. It applies compost products for soil improvement
within the zone, enabling the recycling of organic matter and effectively reducing carbon emissions
while increasing soil carbon sequestration.
The Vanke Foundation has initiated the “VCS 1 Methodology Development for Black Soldier Fly
Treatment of Organic Waste” project. The project aims to provide guidance for relevant project
developers in determining project boundaries, setting baselines, assessing additionality, and quantifying
the reduced or eliminated greenhouse gas emissions, thereby enhancing industry and public
understanding of the carbon emission reduction potential in the field of black soldier fly treatment oforganic waste. In 2023, the project obtained the initiation notice from Verra.

Application of Food Waste Treatment by Black Soldier Fly
The Vanke Foundation combined black soldier fly food waste treatment with scientific education
to guide the public’s attention towards food waste treatment issues, promoting the zero-waste
philosophy and driving the green transformation of society. Drawing inspiration from the organic
waste recycling model of “black soldier fly-composting-garden co-building” in the Vanke Centre in
Dameisha Carbon Neutral Experimental Zone, Vanke Foundation has also collaborated with the
Yantian Management Bureau of the Shenzhen Ecology and Environment Bureau and the Urban
Management and Comprehensive Law Enforcement Bureau of Yantian District, Shenzhen, toestablish the “Near-Zero-Carbon Circulation Science Popularisation Museum.”
The Near-Zero-Carbon Circulation Science Popularisation Museum covers an area of nearly
300 m² and is divided into three sections, including the science popularisation room, the science
popularisation corridor, and the black soldier fly treatment demonstration area. By utilising blacksoldier fly fully automated three-dimensional breeding technology, we can process up to 3 tons offood waste per day. This reduces the carbon emissions generated from waste transfer and disposal.
It is estimated that the annual carbon emission reduction can reach 970.5 tCO2e, supporting theYantian District and Shenzhen in reaching their carbon peaking and carbon neutrality goals.

Encourage the Public to Engage in Zero-waste Management
Creating an environmentally friendly city requires
the active participation of the public. ThroughVanke’s influence, we aim to continuously promote
the philosophy of “Zero-waste Management” andencourage residents to actively engage in wastesorting and zero-waste living practices, making
every resident an advocate and practitioner in wastesorting and zero-waste living.

1

29

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

2023 Zero-waste Day - Zero Carbon Meihao Lifestyle Guide

The 6th Zero-waste Day in 2023, themed “Starting from Zero, Living
Freely,” saw participation from 192 institutions representing 65
cities across 26 provinces nationwide. Together, they promoted thephilosophy of zero-waste living, urging everyone to start with small
daily actions to zero-waste practise and gradually reduce the burden
on both our lives and carbon emissions on the natural environment.
On the day of the event, the Vanke Foundation released the Zero
Carbon Meihao Lifestyle Guide, calling on individuals, organisations,and visitors living or working in Meisha to become advocates,
practitioners, and promoters of green living by starting from zerowaste, to jointly construct a beautiful life in Meisha.
The Guide is divided into two sections: “Individual Action Guide”
and “Organisation Action Guide”. It covers the six most common
scenarios in daily life, including residential communities, hotels,
offices, schools, tourist attractions, and vegetable markets,providing practical action recommendations for both individuals andorganisations.

Zero Carbon Meihao Lifestyle Guide“Zero-waste” Influence Resonating with the WorldIn 2023, the Vanke Foundation explored zero-waste across various scenarios. Through pilot initiatives in specific scenarios, thefoundation summarised its experience to continuously release the positive impact of the “zero-waste” philosophy on society.

Zero-waste Forbidden City
The “Zero-waste Forbidden City” project is dedicated toachieving the vision of minimising landfilling or incinerationof waste to an infinitely close approximation of zero throughthe adoption of scientific and precise waste management
practices. 2023 marked the fourth year of the collaboration
between the Vanke Foundation and the Palace Museum
for the “Zero-waste Forbidden City” project. Its influence
within the cultural tourism and museum industry continued
to deepen. The project has accumulatively engaged around3,000 staffs, 40,000 tour guides, and 21 million visitors in
the collective effort to build a green Forbidden City. Over200 guests at home and abroad have visited the Forbidden
City to witness its achievements and share its stories ofgreen development on international platforms.

By 2023,
the Vanke Foundation had mobilized about

3,000
40,00021

staffs of the Forbidden City
tour guides

million visitors to join in building green

Forbidden City he Verified Carbon Standard (VCS), established by Verra, the global voluntary carbon market standards organization, inT
2005, is the most widely used voluntary emissions reduction mechanism in the world.

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Topic of the Year2023 Sustainability Report

About This Report Report Summary Message Board Statement About Vanke

Zero-waste Forbidden City

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Zero-waste in Islands Action

Strengthen refined management of waste sorting in the Forbidden City
In 2023, the Forbidden City introduced intelligent weighing equipment and data analysis systems to enhance
the scientific and accurate management of waste sorting. In 2024, the "Zero-waste Forbidden City" project willcontinue its exploration of on-site resource treatment modes for organic waste with the palace grounds andimplement composting for garden greening waste. As of December 2023, the Palace Museum, including its mainand northern areas, had processed 54.5 tons of green waste in gardens and generated 19.9 tons of compost
soil amendments to optimise the soil quality for the garden greenery within the Forbidden City.

Creative “zero-waste visiting”
In 2023, the Palace Museum introduced 20 new environmentally friendly cultural and creative products, including
the innovative Songfu Bracelet, made from fallen leaves and discarded branches within the Palace Museum,
which serve as fermentation materials, and keychain pendants made of high-density polyethene (“HDPE”).
These products exemplify the organic integration of Palace Museum culture, art and environmental principles.
From June 2021 to December 2023, a total of 60,322 discarded plastic bottles were collected and recycled,
resulting in a carbon emission reduction of 1.72 tons.
In 2023, the “Zero-waste Forbidden City” project collaborated with volunteer services provided by the Palace
Museum for the first time. Through training, online quizzes, and case studies, 115 volunteers were provided withknowledge about zero-waste practices. Throughout the year, volunteers provided guided tours and stationed
services at designated areas for three offline zero-waste themed events. They organised 15 zero-waste
promotional activities and delivered 63 zero-waste presentations, impacting over 7,500 visitors. The collaboration
has become an important channel for environmental education and promotion among the audience.

Since 2022, the Vanke Foundation has supported the “Food Waste
Resource Treatment Project” on Weizhou Island, Guangxi Zhuang
Autonomous Region. Over the past two years, the project has built morethan 50 demonstration sites for processing food waste by establishing an
on-site organic waste recycling system on Weizhou Island. Over 20 zerowaste B&Bs and zero-waste island village demonstration households havebeen established, along with over ten zero-waste restaurant demonstration
households. The project has processed over 300 tons of food waste andover 400 tons of green waste. Leveraging the Danjia Island EcologicalPark, a temporary composting base has been created, where food waste isconverted into organic fertilizer and returned to the orchards.

In 2023, the Vanke Foundation
establishedmore than50

demonstration sites

for processing food waste

over

20

zero-waste B&Bs and zero-waste island village demonstration
households

The “Zero-waste Initiative in Islands” Project Was Presented at the COP28

The project has also been incorporated into China’s achievements in addressing climate change, reducing emissions,and mitigating global warming. It was showcased through a video presentation at COP28 in 2023, highlighting thesustainable, multi-dimensional, and ambitious “Chinese power in action”. In the future, the project will expand its
influence to more communities, establish more demonstration sites, and boost the in-depth transformation of thephilosophy of zero-waste islands into practice.

Influence as a Benchmark and Demonstration Received Recognition and Acclaim
from Parties at Home and Abroad
In 2023, the Palace Museum, in collaboration with the Vanke Foundation, released the Zero-waste Museum
Action Guidelines, offering a functional plan for implementing zero-waste practices in cultural tourism andmuseum organisations. It holds substantial significance as a reference for sustainable development in theseindustries. In 2023, the “Zero-waste Forbidden City” project attracted great attention from international
professional organisations, and received visits from 157 professional institutions, including the European
Commission’s Directorate-General for Environment and a high-level delegation of the European Commission
for Environment, Oceans, and Fisheries.
The “Zero-waste Forbidden City” project was presented at the China Pavilion of the 28th Conference of theParties (“COP28”) to the UN Framework Convention on Climate Change held on 30 November 2023 to vividly
demonstrate the achievements of China’s cultural tourism and museum industries in green and low-carbon
development.

The “Zero-waste Island” project made an appearance at the COP28
Compost bins within the
Palace Museum

31

A volunteer at the Palace Museum
provides zero-waste guided tours

The “Zero-waste Forbidden City”
project was presented at the COP28

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2023 Sustainability Report

About This Report Report Summary Message Board Statement About Vanke

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Operational
Practices
Our Strategy
Sustainability Management
Compliant Operation
Good Products
Good Services

Response to SDGs
SDG 3 - Good Health and Well-being
Ensure healthy lives and promote well-being for all at all ages.
SDG 9 - Industry, Innovation and Infrastructure
Build resilient infrastructure, promote inclusive and sustainable industrialization andfoster innovation.
SDG 11 - Sustainable Cities and Communities
Make cities and human settlements inclusive, safe, resilient and sustainable.

SDG 12 - Responsible Consumption and Production
Ensure sustainable consumption and production patterns.
SDG 16 - Peace, Justice, and Strong Institutions
Promote peaceful and inclusive societies for sustainable development, provide accessto justice for all and build effective, accountable and inclusive institutions at all levels.

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2023 Sustainability Report

About This Report Report Summary Message Board Statement About Vanke

Our Strategy

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Sustainability Management

Philosophy

SDG 12 - Responsible Consumption and Production
Ensure sustainable consumption and production patterns.

Goals and progress

ue

si
on

s

Vi

on

With 2021 as the base year, the customer
satisfaction rate of VX Logistics will remain above95%.

In 2023, the overall customer satisfaction
score was 92.81, better than previous years.

Creating Long-term Real Value for the
Overwhelming Majority StakeholderssMi

We are committed to providing good products and services for our customers. In 2024, the Company will continue toconsider enhancing customer experience as its responsibility, consistently identifying, understanding, and adapting tocustomers’ needs and changes. It aims to create excellent products and services that customers are willing to pay for,thereby earning their satisfaction and recognition.

alsi

Strive for the best as a team:Consensus, cocreation, joint
undertaking and sharingreProgressV

Follow the fundamental rules of theworld: People-oriented and marketoriented principles

Customer Satisfaction

Port Apartment is committed to maintaining an
overall customer satisfaction score of 90 or above.

Philosophy and strategic positioning

Co

Goals

On the path toward sustainable development, Vanke continues to implement the ESG philosophy in enterprise management andoperation, regularly reviews its ESG performance, updates the Group’s ESG strategies and policies in due time, and conducts
in-depth studies on specific ESG issues, to gradually enhance the ESG management level and intensify social responsibility
practice.

Po
sit
ion
ing

Vanke forges ahead in compliance operation and strives to achieve sustainable
development goals. Vanke continues to enhance its corporate governance level andcreates a solid foundation for quality across enterprise operation management, productdevelopment, and full provision of services. Meanwhile, we adhere to the philosophy ofcompliance governance, improving the risk management system, attaching importance tobusiness ethics management and development, listening to the voices of stakeholders, andestablishing Vanke’s quality image of “good products” and “good services”.

ic
eg
Strat

Be Committed to People’s Better Life,
take on the Leading Role in High Quality
Development, and Be a Great Enterprisein the Great New Era

City & town developer & service provider

100%
achieved

In 2023, the overall customer satisfaction rate
for the VX Logistics Cold Chain and Highstandard Warehousing Park was above 95%.

100%
achieved

The external barrier-free access and internalbarrier-free facilities were continuously
improved, and an overall customer satisfaction
score above 90 was maintained.

100%
achieved

Based on the strategic positioning of a “city & town developer & service provider”, the Company actively provides customers
with diversified products and services for a better life in the fields of property development, property services, logistics andwarehousing, rental housing, retail property development and operations, etc. It aims to create longer-term real value anddevelop synchronously with cities in the new era.

Customer Services

SCPG will continue to optimise barrier-free facilities
and customer experience.

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2023 Sustainability Report

About This Report Report Summary Message Board Statement About Vanke

The sustainability strategy

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Sustainable development management

Vanke, in 2023, formulated the sustainability strategy, centred on the three major strategic directions of operational,
environmental, and social practices, focused on seven development fields and 10 material strategic issues, and promoted theorderly implementation of 24 goals and actions, in a combination of its business and operational practices.
The sustainable development strategy will guide Vanke to gradually push forward high-quality sustainable development.
Accordingly, the ESG Working Committee, through in-depth collaboration with various departments, has broken it down itemwise
by item into strategic actions, and defined the responsible departments and the cooperative departments, as well as the overall
objective, annual objective and key measures of each action in the next three years to ensure that the sustainable development
strategy is truly implemented in practice.

Vanke has established an ESG governance structure with distinctive levels from the Board to the ESG Execution Team. It has
defined the responsibilities and division of labour at each management level to effectively promote the ESG governance work of
Vanke Group while improving the ESG management system.

Governance structures and responsibilities
Organisation Role

VisionComposition

Become a pioneer in green
development

Decide the ESG (including climate change) management frameworkand management strategy of the Company;

MissionPromote green and low-carbon transformation with Vanke’s power, provide quality products
and services with Vanke’s commitment, and create a sustainable future with Vanke’s influence

Board of Directors

Members of the Board

Decision-making
Body
3 majorstrategic
directions
7 focus fields

10 material
strategic
issuesOperational
Practices
CompliantOperation

Ensuring
compliance andprudence
Strengthening
business ethics
management

Quality Service

Improvingcustomer service
quality

Environmental
Practices
Green and Smart
Building

Building green
and healthy
habitat forhumanity
Promotinghousing
industrialisation

Green Operations
Cope withclimate changerisks andopportunities
Increasingenergyefficiency anduse renewableenergyCoping withclimate changerisks andopportunities

Health and Safety

Guaranteeing
health and safety

Decide on the management objectives, policies and implementation
approaches of ESG (including climate change);

ESG Working
Committee
Management Body

Reducing andproperly manage
waste

24 goals andactions• Strengthening risk management according to theestablished development strategy• Continuously improving management systems andregulations• Carrying out business ethics management andstrengthening training and publicity to entities such as
employees, contractors, and suppliers• Green Building Certification• Creating a demonstration zone with ultra-low-energy,
near-zero-carbon or low carbon• Continuously promoting housing industrialisation• Identifying opportunities brought about by climatechange• Setting management metrics and targets for climatechange response• Continuing to promote the assessment of biodiversity
and ecological protection in the environmental impact
assessment report of newly acquired land
• Managing the energy consumption of commercial
office projects, such as adopting a centralised coolingsystem• Constructing efficient machine rooms• Continuously promoting the energy-saving andconsumption-reducing transformation of facilities andequipment• Setting important indicators for energy consumption
management, tracking and managing them on an
ongoing basis• Promoting distributed solar power plants and building
integrated photovoltaics (“BIPV”)• Promoting the garbage classification management ofresidential projects nationwide

High-quality sustainable development• Popularising the “zero-waste” and reduction
management of construction waste• Including ESG initiatives in leasing contracts
and promoting paperless leasing contracts• Offering health and safety training to all
employees and interested parties• Setting key indicators for health and safety
management, tracking and managing them on
an ongoing basis• Enhancing customer satisfaction• Optimising the construction of barrier-freefacilities for commercial and office projects andcustomer experience• Increasing the coverage of supplier due
diligence• Including biodiversity, environmental protection
and other factors in purchase evaluation• Green Supply Chain Action

Engage in discussions on important ESG (including climate change)
issues and monitoring the progress of ESG goals;

Confirm the results of internal and external materiality assessment;

Supply Chain

Promoting green
and sustainablesupply chains

Ensure that Vanke establishes an appropriate and effective ESG(including climate change) risk management and internal monitoring
system;Review and approve the sustainable development (including climatechange) annual report of the Company.

Social Practices
Green Leasing

Responsibilities

The Chairman of theBoard is the director,
and the secretary of
the Board acts as thedeputy director. Other
members include theresponsible personsof relevant functions,
BGs and BUs.

Acknowledge the assessed and identified risks and opportunities
related to ESG (including climate change);
Determine the relevant ESG (including climate change) management
system and workflow;
Decide on the ESG (including climate change) work plan and assess
the completion of the work;
Conduct a preliminary examination of the sustainable development
report and submit it to the Board for review;
Oversee other matters related to ESG (including climate change) of
the Company.
Conduct internal and external materiality assessment;

ESG Execution
Team
Executive Body

Composed of ESG
contact personnel ofrelated functions, BGs,
and BUs; the specificmembers are assignedby responsible
persons of the relevant
functions, BGs, and
BUs.

Prepare the Company’s sustainable development report;
Assess and identify risks and opportunities related to ESG (including
climate change);
Assess the gap between ESG (including climate change) work andstandard requirements of the two stock exchanges, and the advanced
peer companies’ excellent practices, make improvement plans andpromote their implementation;
Implement annual work content according to ESG (including climatechange) management objectives;
Implement resolutions of and other tasks assigned by the ESG
Working Committee.

The governance structure on climate change is detailed in the Climate-related Risk and Opportunity section of this Report.

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2023 Sustainability Report

About This Report Report Summary Message Board Statement About Vanke

Stakeholder communication

Management philosophy
Vanke has constantly reviewed its sustainability performance and continuously consolidated the ESG whole-procedure
management system. Moreover, Vanke has integrated the philosophy of sustainable development into its operation andmanagement and deeply combined it with its existing business and control models by regularly communicating withstakeholders, deepening research on sustainable development policies, conducting issue management, planning development
goals and implementing improvement proposals.

Incorporate
into operation
management

Risk
management

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

In the management process of investment and M&A, sustainable development
factors such as soil quality testing, environmental protection compliance, social
security compliance, and safety production are taken into consideration in theassessment.

Integrate comprehensive sustainability-related risks, such as climate risk, into
enterprise risk management.

We have always insisted on building diversified communication mechanisms and establishing close relationships with thestakeholders for exchanges and communication through more channels and methods. We have also adopted active measures
to respond to the expectations and requirements of the stakeholders.

Stakeholders

Concerns

Legal compliance
Tax payments according to law

The Government

Shareholders

Support for economic development

Vanke Responses
Compliance management
Issuing the Vanke Group Code of Business Ethics
Proactive tax payment
Responding to the call of national policy

Corporate Governance

Establishing a scientific and reasonable governancestructure

Returns and growth

Regular disclosure of business information

Risk control

General meetings
Continued growth to ensure shareholder returns
Timely and full wage payment and social insurance payment

Promote sustainable development to employees and work with them to build a
low-carbon, environmentally friendly, diverse, and inclusive workplace.

Encourage
employeeengagement

In 2023, we conducted 10 training sessions on sustainability for the management
and employees of our headquarters, BGs, and BUs, covering issues related
to sustainable development trends, management of material issues and data
management, to enhance employees’ participation and awareness of sustainable
development.

Employees

Establishment of an occupation health and safety
management system

Health and safety

Issuing the Vanke Group Health and Safety Policy

Smooth communication

Carrying out physical examination and fitness tests for
employees

Fair promotion and development
opportunities

Smooth career development channel

Product quality assurance

5+2 industrialised construction, “9631” progress
management, and Skynet Action

Quality management service

Providing quality service
Protecting customer privacy

Communicate with the government, shareholders, customers, and public charity
organisations, to respond to their expectations and requirements.
Continuously publish annual sustainability reports to respond to the concerns ofstakeholders and show Vanke’s sustainability performance.

Establishment of 12 communication channels
Issuing the Vanke Group Whistleblowing Policy

Customers

Enhancestakeholder
communication

Wage and benefit security

Contract execution according to law
Honouring commitments
Fair, just, and open procurement

Partners

Experience sharing

Open bid invitation, issuance of List of Qualified Suppliers
Issuing the Vanke Group Supplier Code of Conduct
VVUPUP E-commerce Platform
Project cooperation
Promotion of sound industry development
Responding to carbon neutrality goals
Building the Dameisha Vanke Center as a sustainable
development community

Sustainability policies

Issuing the Vanke Group Environmental Protection Policy
Issuing the Vanke Group Water Resources Policy

In order to implement sustainable development, Vanke has formulated the following policies related to sustainable development,
which are disclosed on the official website:

Effective use of resources
Emission reduction

Environment

Climate Change Response
Biodiversity conservation

Housing industrialisation, green building, energy
management, water resources management, waste
management (including community waste management)
Zero-waste projects
Participation in the United Nations Climate Change
Conference and United Nations Biodiversity Conference
Issuing the Vanke Group Climate Change Policy

Vanke Group Environmental Protection Policy

Vanke Group Health and Safety Policy

Vanke Group Water Resources Policy

Vanke Group Supplier Code of Conduct

Vanke Group Climate Change Policy

Vanke Group Whistleblowing Policy

Vanke Group Biodiversity Policy

Vanke Group Code of Business Ethics

Engaging in environmental governance, vegetationconservation, snow leopard conservation, porpoiseconservation, mangrove wetland conservation and coralconservation
Issuing the Vanke Group Biodiversity Policy

Communities and the Public

39

Support for social development

Supporting rural vitalisation strategy

Care for disadvantaged groups

Charity undertakings

Health culture

Volunteer services402023 Sustainability Report

About This Report Report Summary Message Board Statement About Vanke

Management of material issues

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Process of material issue assessment

We regularly conduct research activities in various forms for a wide range of stakeholders to comprehensively understand andcollect their opinions on Vanke’s high-quality and sustainable development. With the successive release of international reportdisclosure standards and the disclosure supervision of domestic exchanges, we are fully aware that the assessment of material
issues should be based on their significant value to an enterprise’s worth (hereinafter referred to as “financial materiality”)
and whether the enterprise’s performance in relevant issues will have a significant impact on the economy, society, and theenvironment (hereinafter referred to as “impact materiality”). We will continue to promote the guideline for dual-materiality
assessment of material issues, as an effort to strengthen the management and control of ESG risks and the identification ofopportunities. During the assessment of material issues in 2023, we comprehensively evaluated the medium and long-term
impact of each issue on the Company’s business development strategy in terms of policy trends, disclosure standards, andinvestor concerns. We also adjusted the connotation of some issues based on Vanke’s development practice and businessplanning. For example, we included the management practice of “strengthening risk management and internal control” in thematerial issue of “ensuring compliant and prudent operations”, to enhance the management and disclosure of the relevant risk
control and internal control. We reported the finally identified issues and their materiality ranking to the Board of Directors, which
reviewed and confirmed the assessment of material issues of Vanke Group this year.

Strengthening the guideline for dual-materiality assessment
We hope to promote the dual-materiality assessment of Vanke’s ESG issues in an orderly manner by referencing the guidanceof GRI 3 and thus identify issues that will create or weaken Vanke’s value capacity. Meanwhile, it is hoped to provide relevant
ESG opinions for Vanke’s future business strategy decisions by including ESG risks and opportunities in the strategic planningand risk management procedures. The dual-materiality assessment can be promoted in an orderly manner from the following
four steps. In 2023, we performed relevant learning, analysis and understanding of the standards and requirements of dualmateriality issues.

Identify and build a database of issues
Based on national policies, company development, disclosure standards, capital market, peer benchmarking and the list oforiginal material issues, we identify and sort out the material issues for this year from multiple dimensions and build a material
issue database.
Policy trend analysis: Follow the national macro-policy requirements, conduct in-depth research on national, provincial
and municipal policies and regulations, combine with the real estate industry policies and regulations, and analyse thesustainable development trend of the industry.
Business relevance analysis: It is regularly reviewed whether ESG issue database matches strategic goals and businessmodels to ensure its business relevance.
Disclosure standards analysis: Grasp the latest sustainability issues management standards and information disclosure
requirements through comprehensive reference to GRI standards, the Task Force on Climate-Related Financial Disclosures(“TCFD”), HKEX Environmental, Social and Governance Reporting Guide and SASB standards.
Capital market analysis: Aggregate the assessment requirements for capital market ESG ratings and indices, and update
the capital market rating issues database.
Peer benchmarking analysis: Benchmark against the sustainability-related disclosures of our domestic and international
peers and identify key industry concerns.

Conduct stakeholder communication
UnderstandStudy the latest global report disclosure criteria and standards, and understand thenecessity of dual-materiality assessments.
Understand the role of dual-materiality assessment in the sustainable developmentof the real estate industry.

Collate and identify the list of issues.

Analysis and review of material issues

Analyse macro trends, industry trends and regulatory requirements.
Conduct special communications with internal and external stakeholders.
Assess the financial materiality to reflect the positive and negative impact of the management
on Vanke’s value creation.

Based on the assessment results and our daily contact and communication with each stakeholder, we understand their core
concerns through online and face-to-face interviews or teleconferences to advance the assessment and review of this year’smaterial issues.

AssessAssess the impact materiality to reflect the possible significant impact of ESG issues
selected by different stakeholders on the economy, environment, and society.

The ESG issues identified are ranked and analysed in terms of their materiality, considering the opinions of the management
and stakeholders’ requirements. The screening and analysis results are reviewed through two channels: internal management
and external experts.

Analysis and identification of issues of the sustainability strategy

Review

Assess and review the impact of material issues according to annual management
practices.

Further identify the 10 material strategic issues regarding Vanke’s high-quality sustainable development.

Response and disclosure
Modify the issue matrix based on the degree of impact.
Align it with the dual-materiality assessment.

41

AdjustDevelop and implement action plans for material issues, present and confirm to the Board, and highlight the responses anddisclosures in the report.

422023 Sustainability Report

About This Report Report Summary Message Board Statement About Vanke

Materiality matrix

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Issues of the sustainability strategy
With the changes in regulatory requirements and reporting standards in 2023, we identified seven focus fields based on Vanke’s
business development practice, and further defined 10 strategic issues from 26 ESG material issues and planned key actions
for them. In addition, we comprehensively assessed the materiality of the 10 issues from the two dimensions of “financial
materiality” and “impact materiality” as a guide for the implementation of Vanke’s sustainability strategy.

1
Concerns

Importance to Stakeholders

8
13

14

17
21

4

18

Building
fairness and
trust

11
20

23

19

16

15

7

22
25

26

10 strategic issues
Ensuring compliance andprudence +Compliant Operation

6

9

24

7 focus fields

2

5

10

12

3

Green and Smart
Manufacturing

Goals and actions
Strengthening risk management according to the establisheddevelopment strategy
Continuously improving management systems and regulations

Strengthening businessethics management +Building green and healthy
human settlements $ +Promoting housing
industrialisation $ +Carrying out business ethics management and strengthening
training and publicity to entities such as employees, contractors,
and suppliers
Green Building Certification
Creating a demonstration zone with ultra-low energy,
near-zero-carbon or low-carbon
Continuously promoting housing industrialisation
Identifying opportunities brought about by climate change

Environmental

SocialGovernanceImportance to Vanke’s Development

1

Building green and healthy human settlements

15

Improving service quality

2

Increasing energy efficiency and using renewableenergy16

Biodiversity conservation

3

Guaranteeing health and safety

17

Establishing enterprise and supply chain behaviour
standards

4

Ensuring compliance and prudence

18

5

Coping with climate change risks and opportunities

Protecting the rights and interests of employees throughdiversity, equality, and inclusiveness19

Improving community infrastructure and supporting
services

20

Promoting community integration, coordinateddevelopment, and building a people-centric new town

6

Reducing and properly managing waste

7

Promoting housing industrialisation

8

Strengthening business ethics management

9

Promoting green and sustainable supply chains

10 Safeguarding product safety and quality
11 Ensuring the well-being of employees and creatinga decent employment environment

12 Protecting customer privacy and information

security

13 Fair hospitality and marketing
14 Providing diversified training and careerdevelopment opportunities

21

Protecting intellectual property rights

23

Enhancing employee participation and satisfaction

24Serving rural revitalisation and boosting common
prosperity

25

Promoting industry exchange, cooperation andinnovation

26

Capacityof highquality andsustainable
development
China’s“carbonpeakingand carbon
neutrality”
strategy

Reducing water waste

Setting management metrics and targets for climate change
response
Continuing to promote the assessment of biodiversity andecological protection in the environmental impact assessment
report of newly acquired landManaging the energy consumption of commercial officeprojects, such as adopting a centralised cooling system
Constructing efficient computer rooms

Green Operations

Increasing energy efficiency
and using renewable energy$+

Continuously promoting the energy-saving and consumptionreducing transformation of facilities and equipment
Setting important indicators for energy consumption
management, tracking and managing them on an ongoingbasis
Promoting the construction of distributed solar power plants
and building-integrated photovoltaic (BIPV)Reducing and properly
managing waste +Improving environmental awareness and participation of
stakeholders

22

Coping with climate changerisks and opportunities $ +Responsible
products andservices

Enhancing theresilience of
the industrial
chain

Green Leasing

Coping with climate changerisks and opportunities $ +Health and Safety

Guaranteeing health andsafety $ +Quality Service

Improving customer service
quality +Promoting the garbage classification management of residential
projects nationwide
Popularising the “zero-waste” reduction management ofconstruction waste
Including ESG initiatives in leasing contracts and paperlessleasing
Offering health and safety training to all employees andinterested parties
Setting key indicators for health and safety management,
tracking and managing them on an ongoing basis
Enhancing customer satisfaction
Optimising the construction of barrier-free facilities forcommercial office projects and customer experience
Increasing the coverage of supplier due diligence

Supply chain

Promoting green andsustainable supply chains $ +Including biodiversity, environmental protection and otherfactors in purchase evaluation
Green Supply Chain Action$ Financial materiality + Impact materiality

43

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2023 Sustainability Report

About This Report Report Summary Message Board Statement About Vanke

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Compliant Operation
The General Meeting exercises the right of decision-making as specified in relevant laws and regulations, and the Articles of
Association. It decides on critical issues such as guiding principles for corporate operations, financing, investment, and profit
distribution.

SDG 16 - Peace, Justice, and Strong Institutions
Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build
effective, accountable and inclusive institutions at all levels.

Corporate governance
Governance structure
In compliance with the Company Law of the People’s Republic of China and other relevant laws and regulations, Vanke has
established a corporate governance structure with checks and balances among various functions and formulated regulations
that align with the Company’s development needs. The General Meeting, the Board, the Supervisory Committee and the senior
management exercise rights and fulfil obligations strictly in line with the Articles of Association and play the role of specialisedcommittees of the Board and independent directors, the effective implementation and oversight of corporate governancesafeguarding the interests of shareholders and the company, to sustain the Company’s long-term healthy development.

General Meeting

Audit Committee

Board of Directors

Remuneration and
Nomination Committee

Executive Management Team (“EMT”)

Investment and Decisionmaking Committee

Supervisory Committee

The Board reports to the General Meeting and exercises the rights of operation and management over the Company. It sets
up three specialised committees on audit, remuneration and nomination, and investment and decision-making. To ensure
the professionalism of the committees, members are selected with a moderate balance of skills, experience and diversity ofviewpoints. The Board consists of 11 directors (including one woman), including one employee representative director and four
independent directors. These independent directors are responsible for the convening of the specialised committees and hold amajority in the Audit Committee and the Remuneration and Nomination Committee in order to play a better role as independent
directors.
The Supervisory Committee reports to the General Meeting and has three
supervisors. It conducts financial checks and oversees directors and senior
management members are adhering to relevant laws while performing theirjobs. It also organises visits and inspections of subsidiaries to tighten the
supervision and thus safeguard the interests of the Company, shareholders,and employees.

Proportionof SeniorManagement
Members of theCompany

Female50%

The senior management is accountable for the production and operations of
the Company, implementing the resolutions of the Board, annual plans andinvestment proposals, formulating corporate policies and rules, and exercisingother powers as granted by the Articles of Association or the Board.
During 2023, the Company strictly complied with the Company Law of the People’s Republic of China, the Securities Law of thePeople’s Republic of China, the Code of Corporate Governance for Listed Companies, the Main Board Listing Rules, and the
Corporate Governance Code of the Hong Kong Stock Exchange, and other laws and regulations. In line with the Company’s
actual circumstances, the Company continuously improved the corporate governance structure and standardised the operations.
During the reporting period, two general meetings, five on-site Board meetings and seven telephonic proxy votes were held in
total, and 32 resolutions were approved. The Company amended and issued multiple rules and regulations such as the Rules
for the Implementation of the Board of Directors Remuneration and Nomination Committee and the Project Follow-up andInvestment Policy, to further enhance the level of corporate governance.

Group Headquarters

Business Group (“BG”)

Logistics BU

Hotel and resort BU

Overseas BU

Long-term Rental Apartment BU

Property Service BG

Commercial BG

Southwest Region BG

Northwest Region BG

Shanghai Region BG

Southern Region BG

Central China Region BG

Northeast China Region BG

Beijing Region BG

Organisation Centre

Coordination Centre

Business Centre

Monitor Centre

Management Centre

Headquarters of Development and Operations

Business Unit

Organisational Structure of the Company

45

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2023 Sustainability Report

About This Report Report Summary Message Board Statement About Vanke

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Independence and diversity of the Board
The effectiveness, independence, diversity and professionalism of the Board are what we
strive to achieve. The Board has set up three specialised committees: audit committee,
remuneration and nomination committee, and investment and decision-making committee.
Each specialised committee shall earnestly perform its duties in accordance with theCode of Corporate Governance for Listed Companies, the Corporate Governance Code,the Article of Associations, the Rules of Procedure of the Board of Directors, as well as
the implementation rules of each specialised committee. Each specialised committee isconvened by an independent director, and the matters within the scope of responsibilitiesof each specialised committee shall be approved by the corresponding committee before
being submitted to the Board for approval. As of 31 December 2023, the Company has 11
directors, among whom 73% are non-executive directors and independent non-executive
directors.

Professional background of the Board members
Strategy/Business Focus

The number of non-executive
directors and independent nonexecutive directors accounted for73%

Members
Proportion of nonexecutive and independent
non-executive directors

ZHU
Jiusheng

XIN Jie

HU Guobin

HUANG
LipingLEI
LIAO Zibin
Jiangsong

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

LIN
Mingyan

SHEN
Xiangyang√

ZHANG
YichenWANG Yun√

Financial and risk
management

The independent non-executive directors and independent directors shall fully exert their professional opinions and keepbalance in each specialised committee.

Convener

YU Liang

Audit Committee

Remuneration and
Nomination Committee

Investment and Decisionmaking Committee

Independent non-executive
director

Independent non-executive
director

Independent non-executive
director

Non-executive director

Non-executive director

Executive director

Independent non-executive
director

Independent non-executive
director

Non-executive director

100%

100%

67%

√

√

Industry

√

√

√

√

√

International projectexperience

During the reporting period, the Company actively practices the Policy of Diversifying the Board Members. The Company
has formulated and updated the Rules for the Implementation of the Board of Directors Remuneration and Nomination
Committee. The Rules explicitly state that the Remuneration and Nomination Committee shall consider the Board’s
structure and composition, as well as the selection criteria and procedures for directors and senior management members,
including but not limited to gender, race, language, cultural background, educational background, industry experience andprofessional experience, when reviewing the structure and composition of the Board and assessing the selection criteria andprocedures for directors and senior management members. In the meantime, the Remuneration and Nomination Committee
shall comprehensively consider the contribution of the Board member candidates to the qualification, skills, experience,
independence, and gender diversity of the Board based on the business model and development planning of the Company. The
current Board members have extensive industry experience and expertise in various areas, including financial management,
and corporate governance.

In March 2023, Vanke added a Board Diversity Policy chapter to the Rules for the Implementationof the Board of Directors Remuneration and Nomination Committee to further clarify the guidelines
and requirements related to board diversity.

47

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2023 Sustainability Report

About This Report Report Summary Message Board Statement About Vanke

Business ethics

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Prevention of moral risk

Vanke consistently upholds honest and compliant operations as its operational
philosophy, maintaining a “zero-tolerance” stance towards fraud, commercial bribery,
and conflicts of interest. We take whistleblowing management seriously, continuously
strengthening internal risk management. Simultaneously, we advocate establishing amutually trusting compliance partnership and expect every Vanke employee to adhere
to the bottom line in order to safeguard a business environment characterised by faircompetition and foster a transparent and healthy business ecology.
Vanke has established a well-proven integrity management structure. The Audit
Committee of Vanke is responsible for reviewing the Company’s internal controls,
coordinating the communication, supervision, and verification of internal and external
audits, inspecting and evaluating the Company’s risk management system, and so on.
The audit and supervision functions are directly responsible for the integrity managementof the Group. We have established a supervision mechanism involving the headquarters,
business groups/units (“BGs/BUs”) and front-line companies to play a major role in the
management of audit supervision and corruption risk screening.

Vanke has achieved a100%signing rate for

its Sunshine Cooperation
Agreement in 2023

Vanke has formulated many codes of conduct, including the Sunshine System – Vanke Red Line Requirements for Employee,
the Letter of Reminder for Integrity Risks, the Code of Conduct for Employee, the Guidelines on Declaration of Potential
Conflicts of Interest among Employee, the Sunshine Cooperation Agreement and the Principles for Whistleblowing and so on, tostrengthen the foundation of corporate business ethics management.
In 2023, we made amendments to the signing scope in the Sunshine Cooperation Agreement, and added provisions on
standards of bilateral obligations for “fraud behaviour” and the adjustment mechanism for applicable scope. According to theprovisions, We adopted a stance of “fraud is not tolerated, losses arising therefrom shall be recovered, and employees involvedin the fraud shall be held accountable. The signing rate of the Sunshine Cooperation Agreement reached 100%. In addition, we
also updated the Guidelines on Declaration of Potential Conflicts of Interest among Employees of Vanke Group to define theapplicable scope of this system as all employees of the Group, including temporary labour dispatch and outsourcing personnel,
and specified the handling methods after declaration of conflicts of interest. We officially formulated and issued the Vanke Group
Code of Business Ethics and the Vanke Group Whistleblowing Policy to specify the definition and scope of corruption andbribery, prohibit the behaviours in violation of business ethics rigorously, illuminate the methods to report malpractice and theprotection mechanism for informants, and provide employees and partners with guidelines on moral behaviours and considerate
protection.

Vanke conducts internal inspections on business ethics annually in selected key BGs/BUs,
achieving 100% coverage of business lines and subsidiaries every three years. Additionally,
we hired external third-party institutions to conduct business ethics audits in all the businessof all wholly-owned and controlled projects once every three years, thereby realising athorough inspection in such aspects as integrity risks, organisation culture, team atmosphereand supplier relationship.
Vanke actively invited all employees and partners to evaluate its integrity environment. Basedon the assessment on and analysis of the evaluation results, it compiled a Letter of Reminder
for Integrity Risks, and issued the Letter to front-line management teams. Customers should
be described in line with the Letter, and paying customers are required to sign it, so as toforesee the integrity risk prevention management. We continuously conduct investigations
related to red lines, bottom lines, and integrity according to departmental standards. This
year, the investigation covered all BGs/BUs, and integrity presentations, integrity seminars,
and face-to-face conversations with general managers and other methods were employed topromptly identify and address integrity risks.

No external borrowing that exceeds theauthorities

No underreporting, omission, or latereportingNo accepting bribes
No false promises to customers

No personal collection of customermoney
No ambiguity regarding quality standards“I am not a company spokesperson”
No external guarantee that exceeds theauthorities
No bribery
No falsification of data

49

Vanke Group’s
16 Bottom Line
Principles

were defrauded was

Focusing on integrity construction, internal anti-fraud investigation, and organisational
construction, Vanke conducted online and offline audits in key areas and among key
personnel. The online audit was aimed to identify abnormal information via Eagle Eye system
and make corrections in a timely manner. The offline audit consisted of a comprehensive audit
and a special audit. In 2023, we conducted a total of 65 comprehensive and special audits forall business lines across the Group, and a total of 860 risk inspection items were issued. We
will continue to reinforce the line of defence, maintain a rigorous attitude, promote rectification
by investigation, and effectively resolve integrity risks.

0

Six Major Special Audits and Supervisory Tasks

Special liquidation ofassetsSpecial supervision on
procurement

Formulate the Management
System for Sale of Special
Houses, and punish personnel
violating the system;

Examine the practical statusof operation, and correctinternal operation data;

Investigate and punish
violators, and correct the
procurement system promptly
based on the violation;

Special audit for hotelbusiness

Special audit for
management of port
apartment and rental
housingSpecial audit for property
assetsSpecial audit for saleNo compromise on life safety

In 2023, Vanke
strengthened customer
anti-fraud alerts, including:
Displaying the Letter ofReminder for Integrity
Risks at the exhibition
hall and providing it whencustomers pay. The numberof cases where customers
who signed the Letter ofReminder for Integrity Risks

No external investment thatexceeds the authorities
Not to seek personal gain
No private engraving and private useof official seals
No leakage of confidential information
No private treasury

Conduct audits for hotelmanagement and investment
behaviours;

Punish violators, and correct
management measures;

Conduct special processing
for matters related to asset
encroachment.

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2023 Sustainability Report

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Deepening integrity culture
Vanke advocates an integrity-based professional spirit, and attaches importance to cultivating an integrity culture. Vanke
conducts annual integrity education for members of the Board and all employees, and deeply plants a culture of integrity in theheart of every employee through promotion of integrity as a quality, analysis of cases in violation of business ethics and othermethods.

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Integrity activity month

The Headquarters of Vanke organises “integrity activity month” in March every year.
This activity aims to provide employees and suppliers with anonymous channels topresent their opinions, start declarations of conflicts of interest among employees
according to the Guidelines on Declaration of Potential Conflicts of Interest among
Employees, and conduct integrity training among all employees, including outsourcing
employees. The coverage rate of this activity has reached 100%.

Regular training for all employees
Regular training for all employees: We conduct annual training on ethical standards under consistent standards,
covering all employees, including members of our Board, part-time employees, outsourced employees, andcontractors, and regulate the conduct of all employees in their positions. We conduct regular integrity promotion
activities to promote integrity laws and regulations and internal company norms through a dedicated integrity
website, a series of integrity posters, the launch of integrity presentations and the release of integrity files and allemployee warning cases. In 2023, we conducted quarterly briefings and training activities on disciplinary violations
that occur within the Company.

Enhancing partner integrity

The business ethics training
covered all the employees(including intern employees
and outsourcing employees)
and contractors.

100%

Vanke collaborated with several well-known enterprises to establish Enterprise Anti-fraud Alliance. With the original aspiration of“concerted efforts for anti-fraud cause and co-development of a harmonious society”, the alliance shares blacklists of dishonest
persons and suppliers, releases the Anti-fraud Survey Report on China-based Enterprises, conducts training for anti-fraud
talents, and provides mutual assistance of anti-fraud resources and other services. To date, the Enterprise Anti-fraud Alliancehas grown to 1,225 members, with more than 50% being listed companies. It has become the most influential enterprise antifraud and mutual assistance organisation in China, contributing to the development of a clean commercial community.

Specific training

51

Onboarding
integrity
training for new
employees

We require all new employees to attend the training of the Sunshine System – Vanke Red Line
Requirements for Employees, and sign the Vanke Group Statement to enhance new employees’
awareness of professional red lines such as bribery, acceptance of bribes, duty encroachment,
economic fraudulence, conflict of interest, deception and concealment, and disclosure ofconfidential information. In 2023, Vanke’s training for freshmen covered 50,898 new employees.

Executive
training

To forge a loyal, diligent and incorruptible management team, we continuously enhance senior
management’s awareness of performing their duties with integrity. In 2023, the directors,
supervisors and senior executives of the Group attended the special training sessions
for directors, supervisors and senior executives organised by the regulatory authorities tocontinuously keep in mind and put into practice regulatory laws and regulations.

Business
ethics training
for contractor
employees

Vanke conducts integrity publicity and instruction based on the framework of the Sunshine
Cooperation Agreement for contractors immediately after they enter project sites. In 2023, allshortlisted contractors accepted integrity promotion.

In 2023, there were0

cases of unfair competition

behaviours in which Vanke was considered a participant

There were0

instances of violating the Anti-Monopoly Lawof the People’s Republic of China (the “Anti-Monopoly Law”)

522023 Sustainability Report

About This Report Report Summary Message Board Statement About Vanke

Risk control

Whistleblower management
We identify potential behaviours in violation of regulations
by collecting internal and external reports, conducting
internal reviews and control, and other management work.
Independent investigations are conducted by the Monitor
Centre as per stipulated procedures. We accept anonymous
reports, and encourage whistleblowers to leave their contact
information so that we can conduct follow-up investigations
and feedback progress as needed. Upon receiving confirmed
cases, Vanke’s supervision and audit function department
handles the reported cases of fraudulence and corruption
according to seven procedures: judgment and analysis,
establishing a verification team, carrying out verification,issuance of the preliminary verification report, feedback to theinformant and soliciting the opinions of the investigated object,issuance of the formal verification report, and notification. This
process necessitates the relevant cases be concluded within
one month.

Building a solid foundation

ReportChannels

Reporting website: 5198.vanke.com

WeChat official account: “Integral
Vanke”

We take rigorous confidentialityof whistleblowers’ information as
a fundamental responsibility, andprohibit investigated units and reported
persons from resorting to retaliation
against whistleblowers. Once acts ofretaliation are discovered, we will deal
with such actions seriously.

53

We encourage whistleblowers
to report with their real names.
Real-name whistleblowing will behandled on priority, acceptance andprocessing of outcomes of which will
be intimated and notified promptly.

Refining the structure
Vanke has improved and strengthened functions to identify, monitor, and guard against risks at the Board level and internalmanagement level continually. The Board of Directors authorised the Audit Committee to undertake an assessment andconfirmation of risks the Company are willing to accept for strategic objectives and assess the effective operation of therisk management system. The Headquarters is responsible for risk identification, prevention, and control at the company
level, establishing risk-management functional departments in BGs/BUs and front-line companies for risk identification andassessment. Vanke provided the internal control management function and full-time personnel at the Group level, while thefront-line companies were equipped with full-time internal control personnel to handle relevant work.

In the Vanke Group Whistleblowing Policy and the fraud reporting website of Vanke (5198.vanke.com), we specify threemajor whistleblowing initiatives to protect whistleblowers:

Priority to real-namewhistleblowing

In the Internal Control Management System of China Vanke Group Co., Ltd. and the Risk Management Manual of China Vanke
Group Co., Ltd., Vanke clarifies the Company’s objectives and principles for internal control management and risk management,risk identification, assessment, response, monitoring, and supervision.

Email: 5198 reporting email box

These channels also serve as internal consultation channels for business ethics management and integrity culture construction.
All Vanke employees can counsel and inquire about the anti-fraud system or compliance of personal behaviours via email,official website, official account, etc.

Confidentiality ofwhistleblowers’ information

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Reward for verified
incidents
Whistleblowers, whether internal
employees or external personnel, will
get material rewards corresponding
to the nature and impacts of incidents
reported and their assistance inwhistleblowing, whose information will
be kept strictly confidential.

Optimisation of management
Risk management covers all business areas of Vanke, and the “Three Lines of Defence” for risk management consist of
business, functional and internal supervision departments that implement comprehensive risk management. In responseto the six identified major risks, we continuously follow up on special rectification and establish a long-term effective risk
management mechanism. In 2023, Vanke organized high-risk fields and companies to carry out internal control self-inspection,
conducted internal control development with regard to shared problems, improved system procedures and system monitoring,and enhanced publicity of red line and bottom line to improve all employees’ awareness of risk compliance. For more detailed
content on internal control and risk management of Vanke, please refer to China Vanke Group Co., Ltd. 2023 Annual Report.

Three Lines of Defence

First line ofdefenceRelevant functional departments
and business units

Identify risk categories and make assessments onrelevant risks.

Second lineof defence

Finance, internal control, risk
and other functions

Assess risk boundaries and establish risk prevention
mechanism.

Third line ofdefence

Internal audit

Supervise and evaluate risk management in all
business fields and relevant implementation.

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2023 Sustainability Report

About This Report Report Summary Message Board Statement About Vanke

Construction of risk culture
Vanke consistently advances employee education on risk management and enhances all employees’ capability of risk
management through risk management training. To solidify the construction of risk culture, we integrated contents related to risk
management into routine trainings and conducted various special trainings on topics like red lines bottom lines, negative cases,
and risk tips through regular and irregular methods to further improve employees’ awareness of risk management.
To ensure the Company’s effectiveness in risk control culture, Vanke urged the Headquarters and all BGs/BUs to continuously
improve their risk awareness during routine work. The headquarters and relevant departments in all units carried out studies
on external risk factors such as economic situation, industrial policy, and market competition, as well as internal risk factors likefinancial status, fund status, and assets management to identify and assess major risks. The major risks are reported at theGroup's meetings and various professional meetings. In response to front-line companies, we included risk culture, publicity of
red line and bottom line, and creation of internal control atmosphere as items in the assessment of work performance, improving
all units’ emphasis on the construction of risk culture.
In addition, we developed an internal control and monitoring mechanism, and irregularly organised specially-designatedprofessional personnel to conduct in-depth monitoring and inspection for specific business according to risk assessment
results and effectiveness of routine monitoring, thereby paving smooth channels for all employees’ feedback concerning risk
management, to facilitate our continuous improvement of risk management measures.

Presentations regarding risk management

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Information security and privacy protection
Vanke constructed a comprehensive information security management system, thereby providing employees, customers andpartners with sound personal information security. We will continue to take an active and compliant attitude, and keep improving
the measures for information security and privacy protection in expectation to provide all employees and customers with safer
and more convenient services in the digital era.

Information security and compliance management
Vanke attaches great importance to information security and privacy protection for related parties, and strictly complies with the
Cybersecurity Law of the People’s Republic of China, the Data Security Law of the People’s Republic of China, the Personal
Information Protection Law of the People’s Republic of China, and other laws and regulations. We formulated an array of
relevant management systems, including the Vanke Group Personal Information Compliance Management Outline, the Data
Security Management Outline, the Personal Information Security Incident Emergency Plan, the Mobile Application Security
and Compliance Management Standards and the Vanke Group Information Security Inspection and Audit Management
Standards, and iterated and updated the above-mentioned five personal information management systems in 2023, defining the
responsibilities borne by Vanke as an information processor. Efforts were made to strengthen the fulfilment of the requirementfor default privacy protection (“PbD”) mechanism in mobile applications, improve personal information compliance incident
emergency plans, and add new requirements on filing of mobile applications, providing Vanke with clear guiding management
standards for information security and privacy protection.
The Group established data security and personal information security compliance teams through the “Dragon Wakening
Programme”, which are divided into two levels: the compliance team at the Group level and the compliance team at the BG and
BU levels, taking charge of the compliance management of the Group’s data security and personal information security.

The Company organises group-wide “objectives and actions communication meetings” where Vanke’s management
team delivers presentations covering risk tips, sharing of excellent cases, objectives, core values, and corporate culture
to implement the construction of risk culture across the Group and improve employees’ risk awareness and capability ofrisk management and control.

Formulate documents concerning cloud platform security management standards and systems, andstandardise cloud security management, cloud security development, cloud security operation andmaintenance and other security requirements
Build cloud security system from IaaS, PaaS and SaaS layers respectively, and open up security
processes and tools
Build cloud network attack exposure surface security detection and response mechanism throughcloud security asset mapping platform
Cloud security
management

Protect application systems and data security on the cloud through cloud access security broker(“CASB”)
Combine standards and technical means to achieve closed-loop management of risk by building acloud configuration risk-handling mechanism
Improve data security and personal information compliance system
Conduct personnel compliance awareness and professional skills training

Optimisemanagement
mechanism

Carry out special work on data security and personal information compliance
Strengthen the security technology protection system
Establishment of bulk export application, approval and encryption mechanism for users’ personal
information
Compliance assessment and application approval process for newly launched personal informationrelated systems

Improvemanagement
processes

Establish the filing management mechanism for mobile applications (including Apps and WeChat
applets)
Regularly implement the compliance detection and rectification mechanism for mobile applications(including Apps and WeChat Mini Program)Carry out self-assessment of personal information impact (“PIA”) for each system

55

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Vanke requires all personnel, including employees, partners, suppliers and other entities,
to sign confidentiality agreements. New employees shall sign the Personal Information
Processing Commitment Letter in addition to the confidentiality agreements. We confirm
the implementation of confidentiality agreements through regular and special audit
checks.
In response to all mobile applications related to customers’ personal informationand supply of services to external entities, the Company launched the lifecycle PbD
mechanism in a unified manner. This year, the number of application scenarios for PbD
mechanism increased from original 5 to 15 BUs. As of the end of the reporting period,
PbD mechanism has been implemented in a total of 45 mobile application products,
including Port Apartment App, Yixuanfang Applet, Onewo Zhuzher App, Vanke Hotel andResort Applet. Meanwhile, we find potential compliance risks through privacy influenceassessment (“PIA”) during each iteration cycle, and establish compliance risk control
mechanism during development to ensure that corporate information and customers’
personal information are secured to a limited degree.

Information security emergency response

In 2023, the signing rate ofconfidentiality agreements
among employees andpartners was

100%

Information security audit
We strictly adhere to the requirements of data security and personal information laws and regulations, conducting prompt
self-inspection and self-correction of compliance risks for sales scenes, shopping malls, project sites, and other locations.
We identify and promote rectification of existing risks and potential risks related to the Group’s data and personal information
compliance, enhancing the compliance awareness of partners in each business department and safeguarding the personalprivacy of customers.
To enhance the Group’s network security defence capabilities and test the existing security defence monitoring capabilities
within the Group, we have adopted a red-team-versus-blue-team approach to conduct in-depth attack and defence drills
targeting the Group’s internal and external network assets. Additionally, we require each front-line business unit to carry out the“Operation Woodpecker” initiative on a quarterly basis to ensure that self-inspections for information security and complianceare properly implemented.
This year, we regularly carried out multi-dimensional audits such as external audits, internal audits and on-site audit inspections
to ensure the effective implementation of our information security measures. We upgraded the bug management platform to
the Vanke Security Operation Platform, optimising the security bug management function and adding functions such as assets
management, baseline inspection, security risk assessment, and risk management. This expansion of coverage and full-lifecycle
management for assets and bugs further enhances the security of the business systems.

57

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Vanke Group revised the Emergency Response Plan for Personal Information Security Incidents, aiming to establish an effective
security protection and emergency response mechanism. The plan clarified data security management requirements, including
data classification and grading, data life cycle management, and data security incident response. It specified the personal
information security incident monitoring and early warning mechanism and emergency response process, enhancing incident
emergency response capabilities and protecting the interests of personal information subjects.
Vanke protects and responds to threats at the entrance through next-generation firewalls
at the network boundary. Through the endpoint detection and response platform, Vanke
detects and responds to security events such as malicious viruses and hobbyhorse worms on
endpoints, malicious software, APT attack groups, bug exploitation, social worker entrapment,
ransomware, and credential theft.
When a personal information security incident occurs, we will take measures such as closing
ports, temporarily shutting down relevant systems, suspending the authorisation of personnel
permissions, and suspending third-party data cooperation. For large-scale personal information
leakage incidents, we will promptly inform the affected users, and take necessary remedial
measures to mitigate the harm and prevent the occurrence of secondary and derivative
incidents in accordance with the requirements of laws, regulations or internal management
regulations of Vanke.

In 2023,

nomajor information

security incident occurredInformation security certification
ISO 27001 Certification/ISO 27701 Certification

National Level Protection Certification

Onewo, Port Apartment and Vanyi Technology
obtained ISO 27001 Information Security
Management System Certification and completed
the annual review in 2023. Vanyi Technology
completed ISO 27001: the latest version of
upgrading certification for the year 2022,
effectively ensuring information security. In 2023,
both Onewo and Vanyi Technology passed ISO
27701 Personal Information Compliance System
Certification.

In 2023, a total of 18 important business systemsof Onewo, Port Apartment, SCPG and Vanyi
Technology have completed level protection
evaluation and certification, including six systems
that have passed Level 2 protection certificationand 12 systems that have passed Level 3
protection certification.

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Information security training
We strengthen culture promotion and training empowerment on information security and privacy protection for all employees throughthemed courses, training exams, and security culture promotion. In 2023, we conducted information security and compliancecertification exams covering all employees, with a 100% passing rate. We uploaded courses related to information security andprivacy protection to the “V-LET'S SHARE Learning Platform” so that all employees (including interns) could learn through thisplatform. In addition, we strengthened employees’ awareness of information security protection by issuing a phishing email test
for all employees. As of the end of the reporting period, we have issued 24 promotion posters and six video courses, thereby
continuously implementing the information security and compliance trainings as well as awareness promotion for all employees.

Sixth “Empowerment Training Conference for Information Security and Personal Information
Protection Compliance” of Vanke

In June 2023, Vanke held the sixth “Empowerment Training Conference for Information Security and Personal
Information Protection Compliance”, which was attended by information security personnel, IT development
personnel, legal personnel, marketing personnel and other personnel of each BGs/BUs and front-line business
units. The training content covered the requirements of national laws and regulations regarding security andcompliance, the Group’s technology system and protection mechanism for security and compliance management,
and the Group’s holistic security framework featuring a multi-cloud mixture environment. The training, which
was attended by a total of 216 persons, helped relevant personnel of all units in the Group to improve theirprofessional capability and management competence in information security and privacy protection.

Intellectual property rights protection
Vanke attaches great importance to the management and protection of intellectual property rights, strictly complies with theTrademark Law of the People’s Republic of China, the Copyright Law of the People’s Republic of China, the Patent Law of thePeople’s Republic of China, the Anti-Unfair Competition Law of the People’s Republic of China and other governing laws andregulations in China, actively protects its own intellectual property rights and fully respects the intellectual property rights ofothers.

Protecting our intellectual property rights
We attach great importance to protecting ourintellectual property rights, implement therelevant requirements of intellectual property
laws and regulations, and ensure that Vanke’s
legitimate rights and interests through suchchannels as patent application, trademark
registration, and litigation to defend our rights.

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Respecting others’ intellectual property rights
We respect intellectual property rights of others, prevent and strictly prohibit any form of infringement. We protect thelegal rights of others from infringement, and dedicate ourselves to creating an innovation environment where intellectual
property rights are respected and fair competition is advocated.

Number of new patents in 2023
Category

Patent for Design

Patents for invention

Patents forutility models

Green Building

0

0

0

0

Assembled andindustrialised

0

0

1

1

Environmental
Restoration

0

1

2

3

Science andTechnology

1

72

0

73

Property
Management

0

10

3

13

New patents in 2023

1

83

6

90

Total

Cumulative number of patents acquired as of the end of the reporting period
Category

Patent for Design

Patents for invention

Patents forutility models

Green Building

0

4

18

22

Assembled andindustrialised

7

11

35

53

Environmental
Restoration

0

13

10

23

Science andTechnology

41

187

30

258

Property
Management

11

28

18

57

Cumulative number
as of the end of thereporting period

59

243

111

413

As of the end of the reporting period, there are

431

Total

patents

pending approval, covering green building, assembled andindustrialisation, science and technology, and property management5960

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About This Report Report Summary Message Board Statement About Vanke

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Good Products
SDG 3 - Good Health and Well-being
Identification anddiscovery

Ensure healthy lives and promote well-being for all at all ages.
SDG 9 - Industry, Innovation and Infrastructure
Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation.

SDG 11 - Sustainable Cities and Communities

Identify and sort out
past product quality
problems and promote thedevelopment of internalmanagement standards

Improvement andrevision
Organise internal
discussions and further
revise the relevant
standards based on the
results of the discussions

Make cities and human settlements inclusive, safe, resilient and sustainable.
SDG 12 - Responsible Consumption and Production
Ensure sustainable consumption and production patterns.

Based on the residential property of residential products, Vanke adheres to its core ideaof “quality, health and capability” and conducts full life-cycle management and control ofengineering quality to deliver quality products to customers.
Focusing on the goal of improving engineering quality and promoting the improvement of
the professional capability of the engineering system, Vanke Group has formulated theManagement Measures for Safety and Quality Inspection of Projects under the Constructionof Vanke Group. Specifically, the quality inspection system consists of the safety, quality,and delivery inspection systems to ensure the quality and safety of Vanke’s residential
products. We developed the Comprehensive Inspection and Review Work Manual toconduct online and offline comprehensive reviews of all projects on a quarterly basis,covering all phases of the project cycle from project acquisition, project delivery, and project
operation and maintenance.
In 2023, in order to match the business models of businesses, offices and hotels, we
added the Delivery Quality Assessment System during the Process of Business andOffice. With the goal of standardizing acceptance standards as specification standards for
product acceptance, we required to carry out assessment and inspection as per productportfolio, time period and delivery batch in order to improve overall quality of the Group’sbusiness and office projects under construction. Meanwhile, we distributed the Manual of
Vanke’s Fine Workmanship Processes among all employees of the engineering system,
and focused on relevant technical requirements and cases about construction processes
customers are highly concerned with as the basic standards for engineering impressions
quality. In addition, we also launched the Guidelines for Quality Assessment on Residential
Demonstration Zones for all employees of the engineering system, and conductedassessment revolving around the effect of outdoor-scene demonstration zones being madeavailable to ensure that high-quality products will be presented to customers.
In 2023, Vanke further promoted the acquisition of the certification of quality management
system, and SCPG, Cushman & Wakefield Vanke Service and companies located in somecities have obtained ISO 9001 quality management system certification. We continued toprogress the development of our internal quality and safety management standards, whichhave been issued for implementation after undergoing a rigorous procedure and serve as
an internal quality management certification standard.

61

Collection of opinions
Formally solicit internal
opinions via email,and organise further
discussion and revision ofmanagement standards
based on feedback

Internal review
Complete internal
approvals and confirmationof standards

Internal
security
management
standard

Based on the national security risk classification standards, we identify past security accidents witha high risk and prepare the Security Inspection Checklist for Development and Operation Businessas Vanke’s internal security standard system to raise the attention to risk events. If an incident isdefined as an issue in Category I, strict accountability will be applied.

Internal
quality
management
standard

Based on the national standards, we improve the requirements for structural verticality and flatness,
control of height difference of wall and floor tiles, wall hollowing, edging, and sealing, etc. We
compile the Residential Engineering Quality Manual for Development and Operation Business as
Vanke’s internal quality standard system.

Design – return to a healthy living environment
In 2023,
SCPG, Cushman &Wakefield Vanke Service
and companies locatedin some cities obtained
ISO 9001 quality
management system
certification, 50% of theGroup's business lines
held ISO 9001

Based on the Product Quality Law of the People's Republic of China, the Construction Law of the People’s Republic of China,
the Regulation on the Quality Management of Construction Projects, the Unified Standard for Constructional Quality Acceptanceof Building Engineering, and other laws and regulations, as well as the WELL standards, Vanke has formulated multiple
standards and regulations, including the Vanke Group Evaluation Criteria for Healthy Residential Areas, the Vanke GroupStar Evaluation and Control Measures for Healthy Residential Area Projects, and the Vanke Group Operating Guidelines for
Evaluation Criteria for Healthy Residential Areas. The Vanke Group Evaluation Criteria for Healthy Residential Areas considers
Vanke’s product system and makes comprehensive evaluation criteria for residential area projects.
SectionValue propositions and technical points

Air

Focus on the development andmanufacture of air replacement
products, such as fresh air ventilation
systems

ThermalComfort

Water

Provide a more comfortable indoor
and outdoor temperature andhumidity environment, and ensure
warmness in winter, coolness insummer, and appropriate humidity.

Provide clean water and morehygienic, safer drainage

Actions taken
Promote the fresh air ventilation system that can filter outdoor air
PM2.5 and indoor discharge formaldehyde and other harmful gases,
with the ability to purify the air actively.
Specify the design requirements on condenser location for central
air conditioning, air conditioning outlet, kitchen air conditioning,temperature and humidity dual control air conditioning, dehumidifier,and underfloor heating.
Develop mobile dehumidification and anti-condensation intelligent
system for underground garage.
Put forward requirements on ensuring water quality, improving water
purification equipment, drainage system safety, and functional kitchen
and bathroom design.
Choose the sanitary ware with self-cleaning anti-bacteria black technology
to enhance water purification equipment and ensure water quality.

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SectionLighting

Sound

Movement

SpiritMaterials

About This Report Report Summary Message Board Statement About Vanke

Value propositions and technical points
Make full use of natural light andupgrade the standard of lamps andlanterns to provide customers withmore comfortable indoor lighting

Provide quieter interior spaces, and a
tranquil life without being disturbed by
noise

Actions taken

Manxiti Project in Xishuangbanna | Focusing onEnsuring Bottom Line of Design Security to Avoid
Major Security-related and Systematic Quality Risks

Research pleasant light environments and healthy lighting.
Design more integrated, personalised luminaires.

Iteratively upgrade the sound insulation of building components,
optimise equipment and pipes, carry out noise acceptancemonitoring, promote the application of water-based acoustic
coatings to open the quiet mode in downtown areas.

Committed to solving customers’ pain
points of insufficient sports venues andimperfect sports facilities, and providing
customers with more abundant, all-age,
and all-weather fitness spaces.

Provide design guidelines for healthy runways and children’s
playground, and apply them to the projects.

Create a green, picturesque park-likelandscape.

With “human beings” as the main characters, transition
from spatial design to scene design, and strive to create
more comfortable and talkative communication venues andneighbourly and friendly interactive spaces.

Provide heat-insulated, safer, more
durable, lighter and stronger materials
and parts.

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Promote new material products to the ground and develop FRP
materials with greater durability and insulation.

During the design phase of the Manxiti Project in Xishuangbanna, Vanke fully took into account the conditions of the
project site and carried out sufficient risk assessment and identification to ensure a safe design bottom line. We adheredto national and local regulations concerning building interval, seismic fortification intensity, seismic grade, and material
properties. All special calculation results and construction measures aligned with acceptance criteria and requirements
for safe use. Emphasis was placed on legitimacy and compliance to mitigate major security-related and systematic
quality risks.

Avoid the risk of landslides based on
geological characteristics

Special in-depth building design aimed toachieve seismic reduction and isolation goals

Vanke created a Building Information
Modelling (“BIM”) model of the fieldfoundation for multi-dimensional analysis
and detection. This approach combined
vertical design with side slope processing,ensuring stability of the foundation’s sideslopes and preventing integral slippage ofthe main building.

For the third phase of the school's key
fortification projects, Vanke provided seismic
isolation layers and seismic reduction measures.
Special designs were made for locations,
numbers, models, and installation methodsof dampers and seismic isolation bearings toenhance building reliability and security.

Original Plan

Ground Line in
the Original Plan
Original Ground Line
Deep Filling

3-3 Cross Section

Adjusted Plan

Barrier-free

Create barrier-free, contactless, morehygienic, safer, more convenient, andmore comfortable community accessand logistics system for customers byproviding multi-dimensional design
guidelines, methods and measures.

Ground Line in
the Original Plan

Carry out studies on emergency protection, contactless access,community comfort and other aspects.

Original GroundLine
3-3 New Cross Section
Cost per Linear Metre: RMB25,000

Rigorously control the load distribution by the basement roofIntelligence

Property
Operation
andService

63

Realise integrated intelligent control
of home devices, providing moreconvenient operation and visualised
environmental data

Build an integrated smart home platform and achieve higher
health standards with the help of “black technology” innovation.

Create a safer and healthier living
environment and provide more
comfortable and convenient services
for residents.

Maintain green spaces, provide event planning, illumination
assurance, noise control, garden maintenance, and value-added
services.

Drawings were designed to embed roof
trusses, canopies, landscape structures,and other connectors and embedded
parts into structural elements in advance.
This strategy avoided post-installed
rebars and embedded depression casing
pipes into collecting wells to prevent
basement floating during construction
and use.

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2023 Sustainability Report

About This Report Report Summary Message Board Statement About Vanke

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Materials – rigorously standardising the access conditions
We have persistently tightened management and control from the source, implemented comprehensive and threedimensional control of the quality of products through unannounced inspections of materials and components and projectsite inspections, and carried out all-round supervision of Vanke products through “Skynet Action” on an ongoing basis toensure good products and services.
As of the end of the reporting period, a total of

Material supply management

15,287

Fully utilise the advantages of centralised procurement, focus on the quality testing and control
on production source raw materials, semi-finished products and finished products and reduce
the probability of unqualified products shipped out of the factories. Using wooden flooring as an
example, we require substrate, formaldehyde content, and surface pollution resistance performance
to be above national standards for solid wood composite products.

Sourcecontrol

Conduct regular product testing, and perform random testing of different categories of products onmonthly, quarterly, semi-yearly, and yearly basis;

Product
testing

Supervision andrectification

with a processing and closure rate ofMonthly testing is conducted on material
quality, construction quality, air quality,
sound insulation, and other dimensions.
In cases of non-compliance, expanded
testing is carried out, and specificrectification plans such as rework orexit are formulated based on actual
conditions.

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The Skynet System implements online
closed-loop management in the wholeprocess from identification of problems
to rectification and closure in thedevelopment of testing plans, issuanceand implementation of sampling testingtasks, testing tracking, inquiry of test
results and rectification.

100%

engineering inspections were completed,with a processing and closure rate of100%

Self-inspection and复盘Self-correction

Halt Production

Post-event
复盘Review

Implementing emergency
measures such as temporary
suspension of use, returns, anddismantling for re-construction for
products from the same batch.

Conducting a post-event reviewof the production process atthe shipping factory alongsidetechnical personnel.

In 2023, in terms of the management of material quality, we continued our management mechanisms from previous years andfocused on online management in material control:

Online management

1,663

Vanke has established emergency response teams and implemented standardised emergency procedures to address productquality issues arising during the collaboration with suppliers.

Since 2015, Vanke has continuously implemented“Skynet Action”across the Group, which focuses on two major inspection
directions: Material Skynet and Engineering Skynet, and further ensures the engineering quality of Vanke’s ongoing projects bystrengthening supplier actions. We have formulated and continuously updated the Administrative Measures for Vanke Skynet
Inspection Implementation, the Vanke Implementation Plan for Skynet Inspection on Projects, and the Vanke Skynet Inspection
Standard for Products, and implemented stringent quality compliance audits of construction materials to prevent non-conforming
materials and components from entering Vanke’s project construction sites. In 2023, Vanke released the Vanke Group
Development and Operation Business Engineering Procurement Supervision and Management Rules, which sets out specificaudit requirements for procurement personnel and external resources, and defines prohibited behaviours. We also provide open
suggestion and reporting channels for rule violations in the procurement process.

Regular testing

Material Skynet inspections werecompleted,

Establish a closed-loop inspection mechanism for non-conforming products and materials upon
testing, and achieve 100% supervision and closure of non-conforming products.

Skynet Action

Engineering Skynet conducted quality spot checks
on key sub-projects related to building structuralsafety and environmental health. In 2023, a total of

Requesting relevant suppliers to
conduct self-inspection and selfcorrection for identified issues,and extending the warranty
period.

Testing

Adjustments

Collaborating with the Sky Net to
conduct testing on problematic
products.

Swiftly addressing and analysing
the root causes while adjusting
business plans based on the
judgment of the results.

Supplier interviews
Responsible suppliers are interviewed,
and corresponding economic penalties
are imposed according to contract terms
to ensure a 100% rectification rate for
identified issues.

In 2023, Vanke Skynet Action achieved

93

100%

coverage across54

city subsidiaries,

505

ongoing projects, andbuilding material categories, encompassing various sectors including real estate, hotels, and commercial properties66

2023 Sustainability Report

About This Report Report Summary Message Board Statement About Vanke

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Construction – intelligent technology integration and assurance

Delivery – full construction cycle assessment assurance

Vanke’s intelligent construction platform boasts a holistic architecture of “1+1+N” and establishes a solution with one platform,
one command centre, and N extended business systems. It fully uses IoT, cloud computing technology, and BIM technology
to achieve real-time uploading, summary, analysis and display of massive data on construction sites and realises thetransformation from traditionally managed construction sites to intelligent construction sites.

Vanke has formulated and implemented the Administrative Measures for Safety and Quality Inspection of Projects Under
Construction of Vanke Group. These measures establish assessment standards for individuals and suppliers involved in safety
accidents, delineating the bottom line of accountability for safety production and quality incidents. Graded management of safety
production accidents is implemented. Corresponding standards for annual assessments and penalties were developed for safety
production accidents of different grades, with heavier penalties for recurrent safety accidents.

Vanke applies drones to facilitate high-quality construction, using them to conduct earthwork measurements on construction
sites and collect on-site information, providing more comprehensive information and data support for design and engineering
teams. The design team can comprehensively optimise the underground engineering scheme based on the on-site earthwork
information, and the engineering team can reasonably arrange the underground construction period and track the processaccording to the earthwork progress information to ensure efficient and high-quality construction.
Vanke has implemented an online remote assessment and evaluation system, enabling integrated management of projects
across six dimensions. This system covers personnel management, machinery equipment management, materials management,
normal management, environment management, and evaluation. In 2023, Vanke achieved 100% online management of Skynet,
covering the formulation of inspection plans, issuance and implementation of spot check tasks, logistics tracking of samples,ordering and tracking of tests, query and rectification of test results, thus achieving closed-loop management of inspection
processes and data, with an emphasis on efficiency in issue identification, rectification, and closure.
In 2023, Vanke conducted anonymous review, joint expert review, on-site scoring and public announcement of benchmarking
sub-projects, and iteratively released the Residential Quality Standard Manual for Development and Operation Business (Version2023) based on the highlights and innovations of the benchmarking sub-projects.

PersonMachineMaterial

MethodEnvironment

Measurement

In 2023, Vanke issued the Regulations on Safety Production and Quality Accident Management in Development and Operation
Business, specifying quality accountability penalties for employees of different ranks based on accident levels.
We entrust a third-party professional evaluation agency to conduct full construction cycle assessments for all projects underconstruction, covering the whole cycle from foundation to final delivery, thereby eliminating the delivery of faulty projects.
Additionally, random inspections of delivered projects are conducted, focusing on those with bottom-line risks. Post-delivery, we
review indicators such as the average repair rate and quality complaint rate per customer from the customer’s perspective toensure the delivery of high-quality products.
We have established the guarantee system consisting of the safety inspection system, quality inspection system and delivery
assessment system. In 2023, we continued to review and refine the system:

Safety and quality inspection
systemDelivery assessment system

It includes three parts: internal mutual
inspection, external professional
inspection and special inspection.
In 2023, a third-party professional
evaluation agency carried out the fullconstruction cycle assessment of 100%of the projects under construction.

It is divided into three parts: regional
self-inspection, headquarters samplinginspection and customer perspective
evaluation, and includes threesegments: pre-delivery assessment,delivery assessment and post-delivery
assessment.

Vanke has initiated the standard of “Real Scene Display, Real Scene Delivery”. Focusing on four dimensions: “delivery
categories, service cycles, spatial scope, and audience scope”, we enhance the delivery system. Core points include
establishing demonstration areas for delivery, enhancing the returning home experience, community operation services, andredefining property service management standards. Through these initiatives, we aim to establish a brand image of “goodproducts” and “good services.”

Yinxiang Plaza Project | Smart Construction Technology

Vanke’s Yinxiang Plaza Project exemplifies the application of smart construction in actual production. We havecollaborated with the Ministry of Housing and Urban-Rural Development to jointly establish the “One Core Three
Warehouses” framework for the advancement of smart construction. This framework, centred around the model of“smart construction equipment + new labour services for the industrial workforce”, leverages project warehouses, team
warehouses, and equipment warehouses to implement intelligent site management and control scenarios.
We have introduced a series of new technologies and equipment including online drones, measurement robots, smart
elevators, and system plastic formwork. Through cooperation with pilot industrial worker bases in Zhejiang Province, wehave introduced and trained industrial workers to use these technologies, achieving an upgrade in smart construction.

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2023 Sustainability Report

About This Report Report Summary Message Board Statement About Vanke

Good Services
SDG 3 - Good Health and Well-being
Ensure healthy lives and promote well-being for all at all ages.
SDG 12 - Responsible Consumption and Production
Ensure sustainable consumption and production patterns.

Vanke adheres to the “customer-centric” philosophy, maintains self-request awareness with the highest standard in the industry,take customers’ needs as the starting point for innovations on products and services, and are committed to delivering good
products and services that satisfy customers.

Baseline – guaranteeing the basic rights and interests
Safeguarding customer safety

Property
SafetyOnewo Cloud launched the “G4” operation, intensifying its efforts to provide training and certification in
CPR (Cardiopulmonary Resuscitation) for frontline customer service staff and equipping service spaces
with AEDs (Automated External Defibrillators). Vanke Service has taken the lead in achieving full coverageof AEDs and CPR skills for frontline staff within residential projects under management in Shenzhen.
In extreme weather, we intensified the patrols around the hotel, verified whether the glass windows on
the exterior wall of the hotel were closed, and turned off the peripheral electrical equipment and power toprevent short circuit and fire as well as to ensure the safety of hotel guests.

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Vanke The Yun Hotel | Inviting Customers to Participate in Fire Drills to Enhance Safety AwarenessTo create a safe and comfortableliving environment, all The Yun
Hotels under Vanke conduct fire
drills every six months, inviting
local fire departments, community
officials, and customers interested
in participating in the exercises
to jointly enhance their response
capabilities to fire incidents.
Wuhan The Yun Hotel sent invitations to Foshan The Yun Hotel invited the local fire
customers to participate in fire drills
department to introduce firefighting equipment

Upholding the basic principle of marketing
There are strict requirements for sales materials, sand table models, various business scenarios, construction methods andtechniques, model rooms and so on when a product is launched for sale, and the dissemination of misleading and ambiguous
product information and excessive commitment is strictly prohibited to protect customers’ right to know.
In compliance with laws and regulations such as the Regulatory Measures on the Sale of Real Estate and the Advertising
Law of the People’s Republic of China, Vanke formulated and promulgated several internal policies, including the Notice onStandardising Operations Relating to Earnest Money/Subscription Money, the Requirements of Strictly Prohibiting Illegal
Collection of Money in the Sales Process. Using these systems as a basis, we have created a responsible marketing system.
This year, we have introduced several guiding documents for customers and marketing teams:

Conduct fire drills and covert surveillance device checks every six months
Hotel
SafetyConduct fire capability training quarterly
Conduct monthly inspections of fire systems and alarm systems
Conduct daily kitchen checks to ensure proper closure
Conduct fire inspections every two hours

Food
SafetyShopping
Safety69

Standardisation of basic management actions for frontline customerfacing staff to maximise sales team effectiveness:

The Guide to the Sale of Ready-toMove-In Residential Properties

The Standard Guide for Early Morning Meetings for Vanke Marketing Projects

In the area of food cold chain, we have developed the VX Cold Chain Food Safety Management System
based on BRC, HACCP, and ISO according to the relevant requirements of the industry head customers
and improved the food safety management system construction. To ensure food storage safety, we haveapplied intelligent technology and management measures such as a temperature and humidity monitoring
system and QEHSS management platform to ensure food safety in all aspects.

The Execution Plan for ‘Hundred-Day Sprint’ for Development and Operation
Business Vanke Companies
The Management Mechanism for Remote Deployment of Development andOperation Business Vanke Companies.

Hold quality and safety meetings monthly
Conduct quality and safety inspections weekly

LeisureSafetyCommitment to providing
customers with what they see:Around the core of the personal safety of customers, Vanke has built a snow and ice sports V·SKI safety
management system covering equipment safety, safety surveillance, safety inspection, personnel safety,
medical care security and safety protection to protect customers’ life and property.
We continuously strengthen commercial safety management, promote the construction of safety
management systems for commercial projects, strengthen safety hazard inspection and rectification,
ensure that equipment and facilities are intact and effective, to improve the safety management ofcommercial projects.

Honest marketing with no trickery
Vanke is the first company in the industry to show its customers the true picture of its products through the Sunshine Declaration,
the Notice of Uncertainty of Educational Information, and the disadvantages inside and outside of the red line. We consistently
adhered to the “Honest Marketing with No Trickery” service standard, 100% audited sales materials, and provided integrity
products and services to assist customers in making genuine choices and enhance customer experience.
In 2023, Vanke Group implemented real estate archive cards nationwide, promoting on-site visits during the sales process ofready-to-move-in projects, with a focus on providing a realistic viewing experience for each unit.

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About This Report Report Summary Message Board Statement About Vanke

Responsible marketing audit

Special training for ready-to-move-in sales

In 2023, Vanke invited third-party organisations to conduct pre-launch unannounced inspections, covering nine modules
including sales reception, sales schemes and organisation, advertising and publicity, on-site displays, demonstration units/delivery model room displays, sand table model displays, various business scenarios, construction techniques zone displays,
and internal management traceability. Based on the inspection reports and improvement suggestions provided by third-party
organisations, project teams were required to provide feedback on improvements within three days. This pre-launch inspection
achieved 100% coverage of projects launched in the year. Unannounced inspection coverage was 100% for all first-timedevelopments during the year.

Vanke conducted8

audits and4monitoring investigations

involving marketing categories to continuously implement
strict supervision of marketing activities

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

In July 2023, Vanke conducted special training for ready-to-move-in sales to enhance compliance with the requirementsthat customers get what they see and that reality matches expectations. We carried out special training for ready-tomove-in sales projects in 16 cities, and immediately after the training, we implemented the management requirements
for national ready-to-move-in archive cards and sales site visits, while providing a realistic viewing experience for each
unit. During this special training, we also launched a special training examination for all employees to further consolidate
the professional skills required of the relevant personnel. Meanwhile, we jointly established a ready-to-move-in
management team with participation from engineering, customer relations, and property management, implementing
standardised and transparent marketing actions in the ready-to-move-in management process.

The audit rate for marketing materials was

100%

Responsible marketing training

Site of Special Training on Responsible Marketing

Vanke continues to strengthen the dissemination of marketing personnel’s sense of responsibility through training, conducting
diverse special training programmes to enhance marketing management.

“Wei Jia” authorisation system“Wei Jia” was launched for the integrity marketing of property consultants, and special training and assessment are
conducted regularly.

Grain Rain Operation

Standards – standardising service requirements

Customer service standard
In 2023, Vanke continued its “Good Service Action”, dedicated to enhancing quality management across multiple dimensions.

Regular online and offline special marketing training for regional and city company planning and marketing leaders, andrelevant partners of development and operation headquarters. The cumulative times of participation this year reached 1,299.

Good Service Action

Service standards

Good serviceservices in 2023

Upgrade inContract Services

Convenient and reliable online
signing tools can meet the needsof customers for remote signing,
reducing duplicate signatures,and quickly checking the contract
content in real time.

Across the entire Group, the application rate of online
signing tools reached 64% for residential properties
and 55% for parking spaces, achieving an overallsatisfaction of 99% for signing services.

Upgrade in Viewing
Services

Vanke improved the quality of
project infrastructure services andensured the stable operation ofequipment and facilities and thecleanliness of hidden spaces.

“White Glove” actions were implemented in 100% of
1,387 Vanke projects, with a total of 68,546 equipment
rooms nationwide undergoing 5S transformation.

Job certification programme
Through online and offline courses, frontline staff
are empowered with basic skills and assessments.
Frontline employees who pass the exam with full marks
receive certification of competence for their positions
and priority in obtaining qualifications for online leadacquisition and management. The cumulative times ofparticipation in this training reached 5,291.

In 2023, relevant marketing courses
were deployed on the V LET'SSHARE Learning Platform, providing
responsible marketing online learning
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Good Service Action

Delivery Service
UpgradeAbout This Report Report Summary Message Board Statement About Vanke

Service standards

Customers experience "one-stop"
handling of delivery procedures,"one-face" reception by customer
service ambassadors, and "oneperson" accompaniment byprofessional home inspectors
throughout the entire homeinspection process.

Good serviceservices in 2023

Customer experience was optimised throughsegmented delivery touchpoints, achieving an instantsatisfaction of 97% for delivery.

Maintenance services wereenhanced, with property
management taking on
maintenance tasks jointly with realestate, continuously improving
maintenance satisfaction.

Overall customer satisfaction with maintenancereached 99.66%.

Thoughtful
Service Upgrade

Vanke focused on improving
operational standards byrefining service details. Each BU
customized thoughtful service
initiatives around businesscharacteristics, and identifying
genuine customer needs.

Vanke promoted “Learn from the Best” initiatives
across its business units. The Long-Term Rental
Apartment Business Unit implemented four customer
service initiatives and launched business Traveller
short-term rental services, increasing overall
occupancy rates from 94.15% to 97.03%.

Upgrade in
Cleaning andGreening
Services

Vanke promoted employee
engagement in replanting andcleaning efforts to enhancecommunity cleanliness andgreenery, creating clean and green
communities where homeowners
feel safe and comfortable.

Maintenance
Service Upgrade

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

The Yun Hotel | Creating “Customer Experience Map” to Enhance Customer Stay Experience
To enhance customer service quality, The Yun Hotel has developed
a “Customer Experience Map.” Customer segment profiles wererefined based on customer demand and positioning to offer targeted
and diversified services from booking, transportation, check-in, dining,
entertainment, departure, to repurchase. Additionally, through various
channels, The Yun Hotel communicates with customers, follows up on andadjusts service details promptly based on customer feedback and demand,
update service processes, and enhance customer satisfaction. The Yun
Hotel’s customer service management capabilities have been recognisedby both customers and the industry. In 2023, The Yun Resort Qingyuan
was awarded the “China Hospitality Quality Service Award - Quality
Service Hotel” by the China Hospitality Quality Service Award Committee.

The Yun Hotel Qingyuan | Awarded“China Hospitality Quality Service Award- Quality Service Hotel”

Upgrade of the service standards for Port Apartment
In 2023, Port Apartment upgraded its service standard from “SOP 1+12” to “SOP 1+14” and continued to hold the monthly
coordinator service day, actively organised the training and certification for 14 touch points of service SOP, and continuously
optimise service standards for multiple scenarios, aiming to promote the standardisation of SOP implementation:

“1”

“14”

Focusing on one
foundation, iteratingover 14 aspects ofproduct safety.

Optimising 3 touchpoints, including warm water welcome,proactively sending messages to introduce viewing rooms
and conducting check-in inspections; for certain stores,
adding 2 touchpoints, including complimentary breakfast
and complimentary greeting cards.

Response to customer complaints
Vanke Service carried out the Green Lawn Action,
undertaking repair, renovation, cleaning, and greening
maintenance in communities. The Green Lawn Action
completed replanting on 3.5086 million m² of greenery,
achieving an overall greening satisfaction rate of
86.2%, with a 2.8% increase from January 2023.

Vanke actively receives and responds to customer complaints, and adopts different processing mechanisms for different
complaints:
Generalcustomercomplaints

Response within 30
We will immediately record them in the CRM system, adhere to the 30-minute
minutes and complete
response mechanism, and complete the first response within 24 hours.
within 24 hours
Strictly handled in accordance with the “1-4-24 hours” information feedback
mechanism

Building a
BeautifulCommunity with
Property Owners

Vanke upgraded its online site
openings to collaborate withhomeowners, inviting them to visit
construction sites each month
to raise construction issues andprovide suggestions, offeringhomeowners a transparent andvisible service throughout the
project cycle.

A total of 368 projects implemented the Build a
Beautiful Community with Property Owners initiative,
transitioning from monthly to regular openings basedon project circumstances. Invitations were extended
to 92,778 households to participate as potential
homeowners. Property owners’ satisfaction withdelivery quality averaged 97.68 points.

Specialcustomercomplaints

Key common
complaintproblems

1 hour: realise the Company’s information transmission to crucial personnel andresources that can solve the customer's problem.
4 hours: complete the problem research and timely response to customers.
24 hours: Formulate a detailed solution to the customer's problem.

Repeated complaints
and problems thathave not been closed
for a long time

We have established an escalation process that extends from customer-facing
staff at the grassroots level to the company’s management, as well as from local
units across the group’s various levels to the group headquarters.

At the same time, Vanke continues to strengthen the training of customer problem handling ability, and further improves theprofessional level of business through the training of face-to-face customer personnel, emergency drills and case defence ofcustomer managers, to continuously strengthen its ability to handle customer issues.

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Technology empowerment to improve customer service response efficiency
In 2023, we enhanced the functionality of the AI automatic warning platform to review and return to internal rapid processing
and closure through cooperation external third parties, using AI technology to identify and sort out issues and concerns related
to customer service that spill over into external channels. Furthermore, we used language models to classify and mark external
public opinion and complaint emergencies, presenting related events and warnings in real time based on different classified
judgements. Based on the above applications, our accuracy rate of customer complaint classification and processing has
increased by 5%, further enhancing the efficiency of customer service response.

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Upgrading – delivering intelligent services
Intelligent community
Onewo has developed a number of online application platforms and products, integrating the resources of people, places,
things, feelings and events in the community, promoting the interconnection of data between different systems, bringing “peoplespace-service” together, providing customers with integrated intelligent services, improving the service capacity of intelligent
space and promoting the intelligence and modernisation of service space management.
In 2023, Onewo continued to deepen its research and practice in spatial smart services, particularly focusing on the extensive
deployment and application effectiveness of the “Lingshi” edge cloud servers in Onewo Town. Additionally, it actively promoted
AI technology-enabled products, including “AI patrol vehicles”, “AI smart assistants”, and “AI scheduling”.

Customer satisfaction survey
Vanke has established a relatively complete and mature satisfaction survey system, which boosts customer satisfaction
management in terms of coverage nodes, research methods, performance assessment and other dimensions.

Vanke customer satisfaction survey system

Covering important nodes and touchpoints throughout the lifecycle
The satisfaction management covers the entire
lifecycle from subscription, contract signing,delivery, to residence:
Eight important time nodes: Identify the 8 key
time nodes across the four stages of prospective
homeowner period, break-in period, stability period,and long-term owner period.
Six important touch points: Cover the 6 important
touchpoints including subscription, contract signing,
construction site visit, delivery, maintenance, andevents.

Extensively collecting public
opinions from customers andintegrated them into front-end
management

Taking customer
satisfaction as anindicator of businesshealthWe have introduced original
customer opinions in the
research, obtained customer
suggestions, formed ademand analysis, andintegrated to the business
front-end for consideration todrive business improvement.

Customer satisfaction isregarded as an indicator of
business health, identifying
weak links and providing
reminders or alerts, which
are then incorporated into
the Company’s operational
processes to continuously
enhance businessperformance and customer
experience.

Lingshiedge cloud

As of the end of the reporting period, Onewo has implemented 394 “Lingshi” edge cloud projects
within the Onewo Town area, achieving 100% completion of AI inspection access and implementation
within feasible project scopes.

AI patrolvehiclesShift from emphasising scores to focusing on customer behaviour

Sales-centric improvements
To adapt to the changes in the industry, on the basis of the past satisfaction
research system, customer satisfaction research tools are added around thecustomer service experience in the sales process and the basis for decisionmaking, and the tools are currently in the improvement stage.

75

The AI smart assistant is the first large-scale model in the property industry, establishing astandardised mechanism for knowledge collection, extraction, and management. It has generated
over 190,000 original Q&A dialogues and formed a high-quality property knowledge training set withover 8,000 manually verified entries, popularising property knowledge and promoting high-quality
industry development.

As of December 2023, the overall
company-wide total customer
satisfaction was

93%

Traditional manual inspection faces various challenges such as low efficiency and poor timeliness,making it difficult to meet the complex and changing requirements of urban governance. AI intelligent
patrol vehicles integrate cutting-edge technologies such as the Internet of Things (“IoT”), cloudcomputing, and AI algorithms, equipped with professional devices like high-definition cameras,
onboard displays, and AI edge servers. Through a combination of intelligent systems, smart
machinery, and employee-assisted inspection mechanisms, this product drives urban governancetoward mechanisation, intelligence, data analytics, and proactive discovery. It is suitable for various
scenarios such as main and secondary roads, alleys, and community parks, significantly enhancing
inspection efficiency.
As of the end of the reporting period, AI patrol vehicles have been deployed in multiple projects andgovernment streets in Vanke Cloud City, capable of quickly identifying violations on urban roads andautomatically uploading information to digital platforms. This generates work orders and assigns themto relevant personnel for processing, greatly improving inspection speed and coverage.

In 2023, we reviewed the customer satisfaction survey system and further refined the survey mechanism:

By altering how survey results are presented and resetting survey rules, thefocus has shifted to customer behaviour and issues, promoting support andimprovement for front-end business processes. The new system is currently
undergoing trials in certain regions of the Company.

The Lingshi edge cloud solution, as a comprehensive smart space solution, offers customers
integrated hardware and software edge computing services, enabling the rapid construction of“edge computing rooms” to support business operations. By integrating advanced technologies
such as artificial intelligence, edge computing, and big data, this solution promotes the intelligent
transformation of communities, parks, and cities, achieving functions like device self-control, energy
management, access control, fire safety, and security management to meet comprehensive needs forsafety, convenience, efficiency, energy conservation, and low carbon.

AI smart
assistant

In 2023, the first property industry large-scale model application by Onewo, the “Tiancheng
Community Committee Workbench”, went live. The AI consultant on the Tiancheng Community
Committee Workbench serves over 1,500 community owners, with a satisfaction rate of up to 85%,
effectively enhancing community governance efficiency.

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Intelligent retail property

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Smart buildings

SCPG is committed to enhancing business capabilities through digitisation and is actively exploring the green and sustainable
development model of “low-carbon intelligent transportation + shopping centre renewable energy” to establish the capabilityof “shopping centre + future digital community” operation and to explore technologies for future digital community operation
technology and scenario application. Guided by this plan, SCPG has established and continuously optimised four major digitalplatforms: a shared service platform aimed at internal operational efficiency, an asset management service platform centredaround asset operations, a data service platform, and a consumer-centric digital marketing platform.
In 2023, to ensure timely reminder and tracking of testing matters required by laws and regulations during business operations,
SCPG launched a mandatory inspection system online for testing matters of concern to achieve real-time alerts and tracking oflegal and regulatory compliance requirements. As a pilot project, the Shenzhen SCPG Centre has created a near-zero carbon
commercial park, and the low-carbon smart transportation and green renewable energy projects have been listed as the firstbatch of projects in the National (Shenzhen) Climate Investment and Financing Project Database.

Vanke drives building operations throughout their lifecycle with technology, continuously enhancing the efficiency and experienceof users such as employees, visitors, property management, and administration in smart offices. Utilising AIoT (Artificial
Intelligence of Things) and big data technology, it empowers scenarios such as personnel access, energy management,
equipment monitoring, and security management for office buildings, creating eight major smart scenarios.

Smart health

Smart space

Smart meeting

Smart access

Smart business project | Nanxiang InCity Mega

Nanxiang InCity Mega, an upgraded version of the Vanke “InCity” series projects, revolves around the three coreelements of “people, space, and commerce.” It empowers scenes with technology, establishing intelligent connections
between consumers, malls, and merchants. Various innovative technologies are utilised to integrate operational
systems, development systems, and service systems, aiming to create a smart business project with the systematic
application of technology.

Smart operations andmaintenance

Smart energy

Smart visit

Smart security
defenseAdditionally, this year, we established a digitalised cloud platform, achieving equipment self-control and energy-saving strategies
for cooling and heating stations. Through intelligent means, we have saved 230,000 kilowatt-hours of electricity.

High-tech Chuanghe Centre | Digital platform for smart offices

For consumers

For stores

For merchants

Partnering with a third party to provide a new smart parking system. Through thecomprehensive application of precise vehicle recognition technology, LBS-based
positioning technology, and mini- programme parking service functions, it achieves
integrated services for parking spaces throughout the entire process.
Establishing a unified data index dimension system for multiple business platforms
including parking, foot traffic, sales, and membership. It automatically conducts research
and analysis on project customer attributes and insights into surrounding consumers,
enabling managers to understand the project’s operation status and issues in real-time
online. This provides effective data support for agile operation management of shopping
centres, enhancing operational efficiency and service quality.

Focusing on merchant businessactivities, it achieves online services
in sales reporting, construction
operations, daily maintenance,
item clearance, and environmental
cleaning. Approval processes thatused to take offline several hours
have been reduced to an averageof 5 minutes online, enhancing theoverall operational management
efficiency of the shopping centre.

To create a multidimensional and multifunctional smart building, Vanke has established a digital platform for smart offices,
assisting the High-tech Chuanghe Centre in obtaining the super Class A office certification awarded by the Chengdu
Association.
Tenant service upgrade: Implementation of functions such as tenant coupon verification, monthly parking applications,and reporting of incidents and repairs;
Equipment and facilities upgrade: Integration of data from devices such as access control, parking lots, energy
meter reading, and HVAC (heating, ventilation, and air conditioning);
Upgrade of intelligent service scenarios: By introducing robots and upgrading weak electrical systems, robots arelinked with barriers and elevators to provide tenants with takeaway and courier delivery services.

Nanxiang InCity Mega
Integrated management diagram of the digital platform for smart offices

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Intelligent logistics

The New Generation Smart Cold Chain Logistics Park - VX Qingdao Qianwan Port Cold Chain Park

VX Logistics improves operational efficiency, adjusts resource allocation in a timely manner, and empowers logistics businesses
with technology by leveraging the intelligent park platform, supply chain management platform, and intelligent algorithm
platform.

Intelligent park platform

Intelligent algorithm
platform

Centred on the themes ofsafety, maintaining quality,
reducing energy consumption,and enhancing efficiency,
intelligent modules areconstructed to safeguard the
VX Park’s security, improve
the logistics quality andefficiency of the park, while
simultaneously reducing energy
consumption.

Through algorithms, customer
supply chains are modelled,
predicted, and optimised,providing decision-making
foundations for enterprise
operations and management.

Supply chain management
platform
Bringing together various
management systems includingorders, warehousing, andtransportation, it achieves
integrated management fromorders to settlement, reducing
costs and increasing efficiency
for customers.

VX Logistics continued to fortify its strategic formula of “Infrastructure × Service^Technology”, expand the map of intelligent
logistics parks, and comprehensively propel the transformation of logistics parks towards intelligent management, thereby
gradually advancing towards a new era of digitalisation.

There was a continual upgrading of system platforms to support business expansion,facilitating the development of one-stop distribution and shared warehousing services. There
was a constant enhancement of the automation rate of warehousing and distribution T+0 bills,
empowering the integrated promotion and implementation of warehousing and distribution,
thus fostering the core competitiveness of cold chain logistics operation services.

Intelligent
supply chain
management

The promotion of customer service tools such as VX-Link and Wanxiaoling further connectedwith customers, providing improved service and enhancing the multi-end user experience forcustomers, carriers, drivers, and other partners.
The supply chain management platform has significantly improved business operation
efficiency, and effectively enhanced supply chain resilience.
Comprehensive security systems including intelligent monitoring, smart firefighting, and patrol
command were fully deployed throughout the park, meeting the demands of park security
management.
Temperature and humidity monitoring platforms, along with the QEHSS safety quality
management platform, were implemented to ensure food quality and safety.

Management ofintelligent parks

The operation of digital platforms, smart forklifts, and intelligent corridors improved on-sitebusiness operations significantly, greatly enhancing park operational efficiency.
VX Logistics effectively optimised the management of park energy consumption through thedevelopment of cold chain IoT platforms and standardised operating systems for cold storage.

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Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

VX Logistic Properties has establisheda benchmarking new generation
smart cold chain logistics park in the
China (Shandong) Pilot Free Trade
Zone Qingdao Area. Through the
integration of advanced technologies
such as digitalisation, the Internet ofThings, and AI into the intelligent park
management platform, combined withthe architecture model of “algorithm+ data + platform”, interconnection
among various devices and systems
within the park was achieved. Thisfacilitated the establishment of acomprehensive port supply chain
service system, aiming to becomea leading port-type smart cold chain
logistics park.

VX Qingdao Qianwan Port Cold Chain Park

Intelligent urban services
Tailoring to local conditions, Onewo’s smart city business directly addresses the labour-intensive and inefficient or underserviced
situations caused by fragmented public service subcontracting. It integrates systematic thinking on property management
and process management capabilities into urban governance, breaking the traditional “dispersed operations” model and theboundary constraints of “everyone sweep in front of their own door”, achieving integrated intensive management of municipal
affairs.
Onewo launched the “Smart City Comprehensive Intelligent Operation Solution” at the Urban Governance Innovation Practice
Forum, further enhancing urban governance capabilities and deepening the practice of the “Total Intelligent Operation” service
model, achieving the “integration, intelligence, and co-construction” of comprehensive urban spatial services, shaping the “smart
model” of urban governance.

Smart environmental management in urban villages

Leveraging a smart operational platform, Onewo has pioneered a new model of intelligent governance called “Integrated
Service Governance at the Town and Street Level” in Sanyuanli urban village, Baiyun District, Guangzhou. In 2023, a
comprehensive upgrade to smart sanitation and cleanliness was initiated, innovatively expanding smart urban village
management to encompass the entire street’s smart operations, assisting in the establishment of the Sanyuanli Smart
City Operations Command Centre. In collaboration with Baiyun District’s “City Brain” data platform, it fulfils five corefunctions: grid-based co-management, data collection and analysis, emergency command and dispatch, comprehensive
management task assignment, and oversight of various events. Through grid-based governance and visualised dispatch
mechanisms, it enables rapid response and management of various urban governance tasks, notably enhancing theoperational efficiency of grassroots management. Since the launch of the Guangzhou Baiyun District Smart Urban
Management System, over 50,000 reported work orders have been processed with a completion rate of 100%.

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Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Environmental
Practices
Our Strategy
Climate Change Response
Green Design Commitment
Advancing Green Construction
Practicing Green Operation
Response to SDGs
SDG 9 - Industry, Innovation and Infrastructure
Build resilient infrastructure, promote inclusive and sustainable industrialization andfoster innovation.
SDG 11 - Sustainable Cities and Communities
Make cities and human settlements inclusive, safe, resilient and sustainable.

SDG 12 - Responsible Consumption and Production
Ensure sustainable consumption and production patterns.

SDG 13 - Climate Action
Take urgent action to combat climate change and its impacts.

SDG 15 - Life on Land
Protect, restore and promote sustainable use of terrestrial
ecosystems, sustainably manage forests, combat
desertification, halt and reverse land degradation and halt
biodiversity loss.

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Our Strategy

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Goals

Progress

Logistics and warehousing

Philosophy
In 2023, 100% of all new cold storage projects
reached the LEED Gold standard.
Vanke regards ecological and environmental protection as an important pillar of corporate
development. We pursue excellence in product development and service quality to meet
consumers' needs. Meanwhile, we also keep in line with times while focusing on theharmonious coexistence of people, buildings, and the environment. In response to the “achievecarbon peaking before 2030 and carbon neutrality before 2060” national strategy, we arecommitted to realising green and low-carbon development paths, taking proactive measures
to address the challenges of climate change, and exploring possibilities to reduce carbon
emissions in all aspects of our business, including design and planning, construction, andoperation and management. By this way, we strive to become a pioneer in the field of carbon
neutrality in urban communities.

In 2023, 100% of new logistics high standard
warehouse projects was built according to theindustry’s green three-star warehouse construction,and 100% of all new cold storage projects reached
the LEED Gold standard.
Ensure that LEED/Green Certification standard is
input into the design front-end in advance as thepre-design standard; and encourage and eventuallyachieve full coverage of cold storage parks by
LEED/green warehouses.

Goals and progress

As of the end of 2023, there were more than
45 green warehouses certified or LEED Goldcertified projects, with a combined GFA of
3,190,500 square metres.
In 2023, VX Logistics started the LEED Volume
cold storage standardised prototype certification
programme to further bring the green building
standards to the ground. To ensure that all
new projects meet the LEED Gold design
requirements, VX Logistics has formulated
the VX Logistics LEED Standardised Design
Guidelines, which provides detailed guidance
instructions and professional elaboration on thedesign and construction, procurement of raw
materials, and application of technology.

In
progress

Green Building Certification
Retail property development and operations
Goals

ProgressGroup

Develop high-star and high-quality green buildings,
and gradually increase the star-level standardof new buildings by stages and types: 100% of
all new projects of the Group have reached thenational green building evaluation standards, andencouragement is given to obtain higher level
certifications (e.g., the national green building twostar, three-star, LEED certification, and WELL
certification).

In 2023, 100% of the Group’s new projects met
the national green building evaluation standards.
The GFA of new area that met the national green
building evaluation standards is 19,636,600 m².
Among them, the GFA of the projects that meetthe high-level green building standards (including
national green building two-star, three-star, and
LEED certification) was 10,546,100 m².
In 2023, there were 25 new two-star certified
green building projects (including residential/
public/logistics warehousing), 42 three-starcertified green building projects (including
residential/public/logistics warehousing), 5
LEED Gold-certified projects, 1 LEED Platinumcertified project, and the identification of highstar projects was strengthened gradually.

Ensure that 100% of the new self-owned Incity
MEGA will obtain LEED certification in the future,and that all new buildings achieve the green
building two-star certification in the next five years.

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In
progress

GHG emissions
100%
achieved

Goals

Progress

Property development
With 2021 as the base year, a cumulative totalof five ultra-low energy, near-zero-energy or lowcarbon demonstration zone projects will be certified
by 2025.

By 2023, more than eight ultra-low
energy, near-zero-energy or low-carbon
demonstration projects to be certified by2025 against a 2021 baseline, met their 2025
target ahead of schedule.

100%
achieved

Carbon emission data of the shopping malls
will be collected, converted, and verified ona monthly basis. 22 SCPG shopping malls
achieved greenhouse gas emission reduction
by 2023.

In
progress

Retail property development and operations

Property development
Newly acquired land is subject to third-party
environmental impact assessments and reports as
required by local government departments. The
coverage of assessments and analyses that include
internal and external analyses of biodiversity has
increased over the years.

The new self-owned Incity MEGA - Qianwan
Incity MEGA was awarded LEED Gold Precertification.

In 2023, the environmental impact
assessment reports were obtained for all
new land acquisitions.

100%
achieved

By 2030, the carbon emissions of at least 20 SCPG
shopping centres to be reduced by 9% against a
2021 baseline.

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Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Efficiency Improvement
Goals

Progress

Goals

Logistics and warehousing

Property development

Continue to improve the operational energy
efficiency indicators of commercial office projects:
For new standard commercial office projects
using centralised cooling systems, the averagecomprehensive energy efficiency ratio (“EER”)
of cooling systems increases by 30%. New
commercial office projects in the core areas of tier1 cities achieve the EER excellence goal of 5.0.

Progress

In 2023, we clarified the future newstandard commercial office projects using
centralised cooling systems and the annual
average design energy efficiency ratio(“EERad”) of the refrigeration room systemachieved a grade of 5.0 or above.
In 2023, we completed the design work for
the Shanghai Arboretum IV office project,with the annual average design energy
efficiency ratio (“EERad”) of the refrigeration
room system achieving a grade of 5.1;
the design work for the Suzhou Left Bank
commercial project received a grade of 5.2.

100%
achieved

Take refrigeration energy consumption as animportant indicator of power consumption in thepark: by 2023, the refrigeration energy consumption
will be reduced by 5% against a 2022 baseline.

By 2023, the refrigeration energy
consumption was reduced by 5% against a2022 baseline.

Examine the existing types of refrigerants used,transition to low-GWP refrigerants, phase outhydrochlorofluorocarbons (“HCFCs”), and limit theuse of hydrofluorocarbons (“HFCs”), and prioritise
carbon dioxide-based refrigeration for large
projects.

All parks used environmentally friendly
refrigerants in 2023.

100%
achieved

In 2023, 12 benchmark projects in energy
consumption were set up in commercial
projects under management nationwide.

In
progress

New projects of SCPG will improve air conditioning
refrigeration energy efficiency by 30% or more overthe existing average against a 2021 baseline.

All new projects of SCPG in 2023 wereconfigured to the upgraded standards.

100%
achieved

By 2025, the electricity intensity of the public areas
in 20 shopping malls under SCPG will be reduced
by 6% against a 2021 baseline.

In 2023, the total power consumption of the
public areas in 20 shopping malls under SCPG
was reduced by 1.38 million KWH. from thebaseline year (2021).

In
progress

SCPG will continue to monitor the relevant goalsof operational energy efficiency indicators such as
electricity/water consumption per GFA, electricity/water consumption per RMB10,000 turnover, etc.,
striving to achieve the industry-leading level.

In 2023, SCPG continued to monitor metrics
related to various operational energy efficiency
indicators and continued to optimise theenergy management platform.

100%
achieved

100%
achieved

Property services
For commercial office projects in operation using
centralised cooling systems, compared with theenergy consumption standards in 2020, the energy
consumption of cold sources is reduced by 10% by
2025 and 15% by 2030.

In 2023, we clarified that new self-owened
office, centralised commercial, andneighbourhood commercial projects wererequired to have an energy management
system as standard in the future.

In
progress

Hotel and resort
For projects under construction, if conditions
permit, the central air-conditioning system adopts ahigh-efficiency machine room, and the COP valueof cooling capacity performance coefficient of chillerin the central cooling station is not less than 5.0;
the central hot water system of new projects adopts
the air-conditioning heat recovery system and air
energy heat pump as auxiliary heat sources.

In 2023, Banyan Tree Dongguan, a project
under construction, met the requirements atthe design stage. For the hot water system,
the sixth-generation ultra-low-nitrogenvacuum water heaters were used, with lownitrogen emissions and a thermal efficiencyof 103%.

Energy saving renovation will be carried out for
projects in operation, if conditions permit, to reduce
operating energy consumption.

In 2023, we took measures to reduce
operating energy consumption by replacing
LED light bulbs, using water-saving
bathrooms, and using electromechanicalinverter controllers for projects in operation.

100%
achieved

85

100% of the 18 new self-held projects
opened in 2023 used variable frequency air
conditioners and water heaters with firstclass energy consumption.

For commercial projects with a service scope
covering energy management, collect operationalenergy efficiency indicators such as electricity/water consumption per GFA and electricity/water
consumption per RMB10,000 of turnover, andestablish information on energy consumption
benchmark values by project type.

Retail property development and operations

100%
achieved

Rental housing
From 2021 onwards, 100% of Port Apartment’s
new self-held projects adopt variable frequency air
conditioners and water heaters with first-class energy
consumption. In the future, Port Apartment will also
ensure that 100% of our self-owned projects adopt
variable frequency air conditioners and water heaters
with first-class energy consumption.

Actively use intelligent means to help commercial
enterprise customers save energy and reduce
emissions, and eight benchmark projects in energy
consumption and water conservation will be set up
nationwide.

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Renewable energy use
Goals

Green Leasing
Progress

Goals

Logistics and warehousing

Vanke will gradually increase the proportion ofrenewable energy use, and achieve 100% coverageof distributed PV in newly built cold storage facilities.

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Progress

Rental housing
By 2023, distributed PV was incorporated into
the planning and design of 100% of new cold
storages. As of 2023, 19 VX Logistics rooftopdistributed PV projects were connected to
the grid, with a total installed capacity of
52.02MW and a cumulative power generation
capacity of more than 22,000 MWh.

In
progress

By 2025, 100% of Port Apartment’s rental contracts
will incorporate ESG-related initiatives.
In 2023, Port Apartment will continue to promote theincorporation of energy conservation initiatives into
tenant treaties and the implementation of paperlessleases.

In 2023, Port Apartment’s individual rental
contracts were 100% paperless and 100%incorporated the terms of ESG-related
initiatives, met their 2025 target ahead ofschedule.

100%
achieved

Retail property development and operations
By 2025, at least 18 shopping malls under SCPG
will realise PV power generation, and the power
generated will account for 2% of the electricity
consumption in the public areas of the shopping
malls. We plan to continue to promote theapplication of PV power generation in the future.

In 2023, SCPG has implemented 10
photovoltaic power generation projects.
Currently, a total of 22 photovoltaic power
generation projects have been implemented,
generating a total of over 16,437,000 kWhof renewable electricity.

Green Construction
In
progress

Progress

Property services
Actively promote water conservation. Continuously
improve water conservation measures in our daily
business and operations through fine management
and application of technical means. Strengthen
the recycling of water resources and reduce waterpollution.

Water consumption intensity in 2023 was
45.78% lower than in 2022.

We will carry out water-saving renovation for
projects in operation, enhance employees’
awareness of water conservation, increase publicity
to in-house customers, and introduce water-saving
incentive policies.

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Referring to the Ministry of Housing and UrbanRural Development’s Guidebook for the Reduction ofConstruction Waste at Construction Sites (Trial), we
will establish a management system for the reductionof construction waste at construction sites, formulate
a special plan for the reduction of construction waste
at construction sites, and advocate and encourage
construction parties to improve the utilisation rate ofconstruction waste.

We have implemented the principle of reductionof construction waste of the Ministry of Housing
and Urban-Rural Development, and incorporated
relevant measures into the project planning,bidding requirements and cost control. We have
reduced the discharge of construction waste
throughout the life cycle of construction throughthe development of prefabricated buildings suchas steel structures, the use of energy-saving
and environmentally friendly raw materials, theoptimisation of the balance of earthmoving,
digging and filling, and the integrated design of thewhole profession of decoration and landscaping.

We advocate and encourage projects underconstruction to install intelligent water and electricity
data collection equipment, and gradually increase thecoverage rate.

In 2023, all projects under construction were
equipped with hydropower data collection
equipment.

In
progress

Hotel and resort
We will consider water-saving solutions for projects
under construction. For example, choosing watersaving bathrooms for guest rooms and public
toilets, configuring direct drinking systems for some
hotel rooms, and using reclaimed water systems
for some projects.

Progress

Property development

Water Resources Management
Goals

Goals

100%
achieved

In
progress

Green procurement
In 2023, Banyan Tree Dongguan selectedwater-saving bathrooms for both guest
rooms and public toilets.
All water fixtures to be replaced in 2023
were selected based on water efficiency.

100%
achieved

Goals

Progress

Property development
We integrate biodiversity considerations into our
procurement procedures and avoid biodiversity
damage and natural environment degradation.

In 2023, we are progressing towards the goals.
Landscape types have been selected according
to local conditions, and materials and plants withstrong local characteristics were chosen.

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Climate Change Response

Waste Management
Goals

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Progress
SDG 13 - Climate Action

Property services

Take urgent action to combat climate change and its impacts.

Actively promote waste classification in residential
projects and strengthen the resourceful utilisationof waste.
Actively promote the establishment of pilots for
waste classification in residential projects andstrengthen the resource utilisation of waste.
Establish a nationwide data ledger to record thedisposal of food waste and harmful waste fromcommercial projects. The classification of wastefrom commercial projects nationwide is completely
compliant, and no administrative punishment
incidents have occurred.

By the end of 2023, Vanke Property Service
conducted waste classification in 484 newresidential communities; and cumulatively
carried out waste classification in 2,004
residential communities from 131 cities.

In
progress

Hotel and resort
Since 2022, all self-operated hotels will implement
the “zero-waste” project and become “zero-waste
hotels”.

Since 2023, all self-branded hotels have
implemented the “zero-waste” project andbecame “zero-waste hotels”.

We will vigorously carry out more pilot projects of“zero-waste” recycling and organic cultivation in the
hotel and resort business.

The Yun Resort Shenzhen Longcheer has
completed the renovation of “Yun Farm”
and put it into pilot use for organic planting.

100%
achieved

Housing Industrialisation
Goals

Progress

In 2023, the housing industrialisation
projects accounted for more than 90% of
new construction projects

100%
achieved

Green Design Commitment
SDG 9 - Industry, Innovation and Infrastructure
Build resilient infrastructure, promote inclusive and sustainable industrialization andfoster innovation.

Climate Change Response
Goals

We disclosure climate-related information with reference to the recommendationsof the TCFD and IFRS S2 Climate-related Disclosures under four coreares – Governance, Strategy, Risk Management and Metrics and Targets.
During the year, we have made reference to the climate-related disclosure
recommendations issued by the Stock Exchange, our policy for identifying andresponding to significant climate-related matters that have had and may havean impact on the Company, disclosure of significant climate-related matters that
may have an impact on the issuer, and actions taken to respond to them during
the year. At the same time, we have conducted an initial review of the potential
financial impacts of significant climate risks, as recommended by the TCFD
framework, in order to better manage climate-related risks and capitalise on thegrowth opportunities that sustainable development presents to the business.
More information on Vanke’s response to potential climate change risks andopportunities can be found in the “Climate-related Risk and Opportunity” section.
Vanke fully supports the country’s commitment to reach a peak in carbon
emissions by 2030 and be carbon neutral by 2060. We will continue improving
our climate change resilience and adaptability measures to ensure that we
can seize the opportunities of energy transition and green buildings during thisindustrial transformation period, to promote Vanke’s high-quality development.

Property development
The proportion of Vanke’s housing industrialisationin the new construction will be steadily increased
year by year. In 2021, Vanke’s housing
industrialisation accounted for 83% of new
construction projects.

As a pioneer enterprise in tackling climate change and promoting green development, Vanke understands that climate change
poses risks to its business as well as significant opportunities. Therefore, Vanke is committed to mitigating the effects ofclimate change while integrating climate change countermeasures into the whole life cycle covering product design, materials
procurement, project construction and operation, seeking economic models to deal with the risks of climate change. In
cooperation with its partners, Vanke also actively shares its best practices in combating climate change, and calls on the wholesociety to make contributions.

Progress

SDG 11 - Sustainable Cities and Communities
Make cities and human settlements inclusive, safe, resilient and sustainable.

Vanke will take energy efficiency, carbon emissions,water resources, ecology and other environmental
goals as tracking targets and metrics related toclimate change.
We will continue to identify climate-related risks
and their impact on the Group’s business, andformulate Vanke’s climate change management
route with reference to TCFD recommendations.

89

We continue to track the performance ofvarious indicators, and discuss the impact
of climate risks on business.
This year, the potential financial impact ofclimate-related risks was addressed.

In
progress

The development of green building is of great significance to environmental protection and resource saving, and has farreaching impacts on improving the quality of human habitation, promoting the sustainable development of enterprises, andfulfilling social responsibility. In 2023, Vanke continued to implement the Vanke Guideline for Green Building Standards toconsider the human, environmental, and social significance of buildings from the perspective of the whole life cycle of buildings.
This involved promoting the development of circular economy in the construction industry, helping the country’s clean energy
transformation, grasping the opportunities for industrial upgrading of the real estate industry brought about by green buildings,
and reshaping the core competitiveness of Vanke Group.

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About This Report Report Summary Message Board Statement About Vanke

Green building philosophy

Green building technologies

Vanke, with its vision of “being an excellent green enterprise”, firmly adheres to the green development philosophy of“industrialisation, green architecture, and full decoration”. Based on this foundation, Vanke has internalised its green building
philosophy. Our core objective is centred around “green and healthy residence”, with a primary focus on green architecture
research and industrialisation. We achieve this by promoting innovative research in green building materials, implementing thetransformation of building energy structures, conducting full life-cycle design for green buildings, perfecting standardised green
construction practices, and exploring ultra-low energy, net-zero energy, and zero-carbon building systems. Our aim is for all new
projects within the Group to achieve 100% compliance with national green building evaluation standards, while encouraging theattainment of higher-level certifications such as the 2-star and 3-star certification under the Green Building Evaluation Standard,
as well as certifications like LEED and WELL. Starting from 2023, 100% of new logistics high standard warehouse projects werebuilt in accordance with the industry’s green three-star warehouse construction, and 100% of new cold storage projects reached
the target of LEED Gold standard.

Vanke Green Building Philosophy
Core
objectives

Green and healthy
residenceMain
directions

Green building
research

Building
industrialisation

Actionplans

Green building material
research and innovation

Building energy
structure transformation

Green building lifecycle
designBuilding
systems

Ultra-low energy
building systems

Net-zero energy
building systems

Zero-carbon building
systems

Standardisation of green
building construction

Green building technology research
As one of the main directions of Vanke Group’s green building philosophy, the breakthrough of green building technology
is a new development opportunity that the Company attaches great importance to. Vanke Architecture Research Center in
Dongguan, in conjunction with other think tanks, is continuing to promote the research, development, breakthroughs andapplication of green building materials, green construction and energy transition technologies. We have always believed that
innovation and green energy can create new opportunities in the construction sector. We are conducting in-depth research in
the areas of green building materials, Photovoltaic, Energy storage, Direct current and Flexibility (“PEDF”), and green building,to ultimately establish a modern residential system that meets the needs of people, ensures health and longevity, and does notharm the environment.
As we continue to refine our own green building technologies, we do not forget to share our achievements in green building withthe community. As at the end of the reporting period, we have become members of green building committees such as the Hong
Kong Green Building Council. As early as 2012, we have established the Vanke Beijing Green Building Park Green Technology
Alliance, and have cooperated with 14 international and domestic renowned research institutions and enterprises in thealliance, including the Building Research Establishment (“BRE”) of the United Kingdom, the China Green Building Council, theFraunhofer Institute for Building Physics of Germany, and the Centre for Science and Technology of Architecture of France, tocarry out cooperation and exchanges in various fields such as sustainability, innovation, business development, and technology
sharing and dissemination. Extensive cooperation and exchanges will be carried out to promote Vanke Group to realise highquality development in the field of green construction.

91

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

In terms of innovation, we are actively exploring green building technologies and are constantly collaborating with externalorganisations with a view to acquiring more cutting-edge technologies. Among them, green building materials are the directionof Vanke’s continuous technological advancement, and it is currently researching and developing new green building materials
such as ultra-thin stone formed by combining natural stone with fiberglass and other materials, pultruded fibre reinforced
polymer (“FRP”), low noise vibrators, sound insulation coatings for floor slabs, and new types of inorganic anti-mould coatings,
as well as exploring more possibilities of new energy structure systems in the field of construction.

Low-noise Vibrators for the Construction Process

Currently, conventional concrete vibrators are themain source of noise pollution from construction sites,
seriously affecting the auditory health of workers andneighbouring residents. Therefore, Vanke, together
with relevant organisations in the industry, developed
a new type of low-noise inserted concrete vibrator,
in which the main exposed metal periphery of thevibrator’s body is outsourced with a layer of vibrationisolating rubber through the injection molding process.
The vibrator’s motor is internally installed, which
reduces the noise of the concrete pouring construction
and decreases the noise volume of the vibrator by 1015dB compared with conventional vibrators by morethan 90%, to meet the emission standards of theambient noise in the field of the building construction.

New low noise vibrator

Low noise vibrator test site

Ultra-low energy building technology
Ultra-low energy building technology, as an important component of green building, aims to significantly reduce the energy
consumption of buildings and minimise the negative impact on the environment through innovative design and construction
methods. Through this technology, we realise energy efficiency improvements in heating, cooling, lighting and electricity inbuildings, thereby reducing greenhouse gas emissions and contributing to the country’s “carbon peaking and carbon neutrality”
goals.

Vanke has carried out the application of technical standards for ultra-low energy window and door systems
An ultra-low energy door and window system was adopted,
and the energy-saving target for the development segmentof the full construction cycle was achieved throughoptimised design, selected materials and standardised
construction. During the design phase, we innovated thewindow and door structures and glass configurations
to enhance the thermal insulation performance. In the
procurement process, we chose the best resources in
the industry to ensure the quality of materials. During theconstruction process, standardised processes and sample
mechanisms ensure the high quality of the window anddoor systems. The application of ultra-low energy window
and door system technology provides the real estateindustry with practical examples of green building.

Drawings of technical standards for ultra low-energy
window and door systems.

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About This Report Report Summary Message Board Statement About Vanke

Standardised construction of building technology

Zero Energy/Near-zero Carbon Project - Yabingli Phase IV Project

We actively participate in the formulation of various construction standards, with a view to contributing Vanke’s wisdomand strength to the standardisation of the construction field, while promoting the development of our own constructionindustrialisation. In 2023, we led and participated in the development of the following types of standards:

Vanke’s Contribution to International,
National and Industrial Standard Formulation in 2023

ParticipantsNational standards participated and published:
GB/T 28627-2023 Gypsum PlasterIndustry group standards participated in and published:

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Dongguan Vanke Construction Technology ResearchCo., Ltd.

T/ZSPH 03-2023 Technical Requirements of Digital
Home Platform

Dongguan Vanke Construction Technology
Research Co., Ltd.

QBT 2584-2023 Shower Room

Zhuhai Caizhu E-commerce Co., Ltd.

T/CECS 10317-2023 General Requirements for Centralized
Procurement of Solar Water Heating System

Zhuhai Caizhu E-commerce Co., Ltd.

T/CECS 10335-2023 General Requirements for Centralized
Procurement of Fresh Air System

Zhuhai Caizhu E-commerce Co., Ltd.

T/CECS 10333-2023 General Requirements of Centralized
Purchasing of Thermal Insulation Composite System on Wall

Zhuhai Caizhu E-commerce Co., Ltd.

T/CECS 10334-2023 General Requirements for Centralised
Procurement of Building Doors and Windows

Zhuhai Caizhu E-commerce Co., Ltd.

T/CNHA 1060-2023 Quality and Technical Requirements for
Kitchen Electrical Appliances for Centralized Procurement and
Similar Purposes Range Hood

Zhuhai Caizhu E-commerce Co., Ltd.

Green building design
With the increasing global emphasis on environmental protection and sustainable development, green building has becomea trend in the real estate industry. In this context, green building design has become an important indicator of the social
responsibility and sustainable development ability of real estate enterprises. We provide customers with green and low-carbon
habitat products through our comprehensive green building full life cycle design system. We continue to enhance our green
building system in terms of green building materials, ultra-low energy building design, and carbon-neutral community operation,with the ultra-low energy building system, net-zero energy building system, and zero-carbon building system constituting Vanke’s
green building portfolio.

Vanke is committed to transforming the Yabingli Phase IV project into a near-zero energy consumption development. During
the design phase, a total area of 4,158 m2 has been reserved for the installation of photovoltaic panels. Additionally, Vanke
is exploring the implementation of BIPV technology on the rooftops, integrating solar power generation with the architecturaldesign. The project has selected high-efficiency photovoltaic products with a maximum conversion rate of 23%. Through theutilisation of renewable energy sources, it is estimated that a total carbon reduction of 14,162 tons will be achieved.
Furthermore, within the project, we have also planned a 5,700 m2 area dedicated to zero-energy demonstration buildings.
All equipment within this area is selected to be of first-class energy efficiency, and the electricity consumption is fulfilled
entirely through the utilisation of renewable energy sources. To enhance the of photovoltaic power generation, we havesimultaneously introduced the PEDF technology for the project. The entire lighting system adopts direct current (“DC”)
devices, and the energy storage equipment chosen is characterised by high safety, reliability, rapid response, and ease ofmaintenance. Through the utilisation of an energy router, we have carefully planned the application cycle of grid electricity,
energy storage, and photovoltaic power generation, ensuring an abundant energy supply and cost-effective operation.

Healthy residential systems
As a responsible real estate developer, Vanke is not only responsible for the health of the environment, but also for providing
consumers with healthy and green products. Based on the human body’s health and comfort needs, we constructed a healthy
settlement system with 11 dimensions, including air, water, and sound, that featured in all of Vanke’s projects.

Vanke Healthy Three-Star Residential Area--Yantai Tianqin Bay
In order to build a high-standard three-star residential area, we conducted a full-scope health demand excavation for the
Yantai Tianqin Bay project, and formed a separate Tianqin Bay - Vanke Healthy Three-Star Residential Performance White
Paper based on our healthy settlement system.
The health system of Yantai Tianqin Bay’s three-star residential area involves multiple scenarios and dimensions, and pays
attention to the sensitivity and comprehensiveness of owners’ health needs. Through in-depth analysis, we have reimagined
and redesigned the home environment, focusing on various dimensions such as mobility, air quality, lighting, sound, water
environment, thermal comfort, mental well-being, materials, intelligence, property management, and physical fitness. By
creating a holistic and comprehensive health lifestyle chain, we aim to provide our customers with comfortable and healthy
products.

Green building system
Under the advocacy of the green building philosophy, Vanke continues to explore thesustainable development path on the zero-carbon road of architecture. Based on the current
green building system, in recent years, Vanke has successfully implemented and obtained
certifications for multiple projects in the areas of ultra-low energy, near-zero energy, or lowcarbon demonstration zones. These projects include the Yuli Kindergarten in Jiaxing (zeroenergy building), Vanke Shanghai Fengxian Logistics Cold Chain (net zero carbon park),
Shanghai Jiading NEXUS project (including three zero energy buildings, 33 ultra-low energy
buildings, a low-carbon community, and partial near-zero-carbon communities), Shanghai
No.1 Zhongxing Road project (zero energy building), Langshi Senyu in Hefei (ultra-low energy
building), Puyin Yinci in Hefei (ultra-low energy building), Vanke Center in Shenzhen Dameisha
Carbon-Neutral Community, and Shanghai Yabingli Phase IV (zero energy buildings and zeroenergy demonstration building). These projects serve as excellent examples for the real estateindustry in implementing ultra-low energy construction and exploring a development path ofnear-zero emissions.

93

Tianqin Bay 3-star residential system94

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Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Climate adaptation
As the impacts of climate change become more pronounced, improving climate resilience has become a global priority. Building
climate resilience is an important part of Vanke’s sustainable business activities, and we continue to improve our climate
resilience through research on building material durability technologies, green whole-life-cycle building design, and participationin climate resilience technology standards.

New projects have met the green building evaluation standards for

10

consecutive years, and by

the end of 2023, Vanke’s cumulative GFA meeting the green building standards exceeded

Vanke has been invited to participate in the development of the association standard Resilient Planningand Design Standards for Urban Residential Areas

million m².

25

new 2-star certified green building projects (including residential/public/

logistics and warehousing),

new 3-star certified green building projects (including residential/

In 2023, there were
The Resilient Planning and Design Standards for Urban Residential Areas is co-edited by China Urban Development
Planning and Design Consulting Co., Ltd. and Beijing University of Technology. It is planned to involve 11 academic
institutions and corporate entities, including Tsinghua University, China Academy of Building Research, and Vanke, in
its development. Among these participants, Vanke is the only property development company to have been invited tocollaborate.
Vanke’s role in the Resilient Planning and Design Standards for Urban Residential Areas includes the “Resilience ofResidential Buildings” chapter. This chapter encompasses topics such as structural resilience, component resilience, allage adaptability, integration of pandemic measures, climate resilience, and resilience in response to emergencies. We
fully share Vanke’s experience and wisdom in climate change adaptation in recent years, with a view to enabling theconstruction sector to continuously improve climate change resilience and ensure building durability and liveability.

Green building certification
Vanke follows national and industry green building standards such as the Assessment Standard for Green Building. It formulates
and updates the Vanke Guideline for Green Building Standards according to the climatic characteristics and energy-saving
requirements of the operation sites, and its subsidiaries have compiled the VX Logistics LEED Standardised Design Guidelines
and other relevant procedures in accordance with the Group’s requirements. In 2023, we continued to improve a “peoplecentric” green building system, to create a green, low-carbon and healthy building environment for our customers. At the sametime, Vanke takes into account the climate, environment and resources of the region where the building is located, and sets
clear requirements and implements strategies in terms of safety and durability, health and comfort, daily convenience, resource
conservation, and the liveability of the environment.

95

328

42

public/logistics and warehousing),

5

new projects obtained LEED Gold certification, andproject obtained LEED Platinum certification.

1

48%
100%

Among the new projects meeting green building evaluation standards in 2023,
new property development projects introduced renewable energy design,commercial projects introduced renewable energy design, andprojects introduced renewable energy design.

100%

new

of

of newof new cold storage

LEED Certification Projects
GFA

Type

Project name

Level

(10,000 m²)

VX Tianjin Dongjiang Port Cold Chain Park

Platinum

7.44

DesignVX Nanchang Changbei Cold Chain Park

Gold

6.03

DesignVX Yoursender Shenzhen Yantian Cold Chain Park

Gold

10.87

Design

VX Wuhan Dongxihu Cold Chain Park

Gold

9.05

DesignShanghai Hongqiao Qianwan InCity MEGA

Gold

25.64

Pre-certification

Shanghai Longhua Vanke Centre

Gold

7.23

Design96

2023 Sustainability Report

About This Report Report Summary Message Board Statement About Vanke

Advancing Green Construction

Three-star Green Building Certification Projects
Project name97

GFA
(10,000 square metres)

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Type

VX Tianjin Dongjiang Port Cold Chain Park

7.44

Operation

SDG 9 - Industry, Innovation and Infrastructure
Build resilient infrastructure, promote inclusive and sustainable industrialization andfoster innovation.

VX Chongqing Air Park

7.14

Operation

VX Xuzhou Dry Port Cold Chain Park

5.36

Operation

VX Nanning Liangqing Park (Phase II)

7.23

Operation

VX Shenyang Yuhong Shaling Park

8.33

Operation

SDG 11 - Sustainable Cities and Communities

VX Shanghai Nanqiao Cold Chain Park

3.09

Operation

Make cities and human settlements inclusive, safe, resilient and sustainable.

VX Kunming Airport Park (Phase III)

6.09

Operation

VX Zhongshan Huangpu Park

7.35

Operation

VX Ningbo Free Trade Zone

4.94

Operation

VX Wuxi Xishan Campus

6.84

Operation

We integrate the philosophy and practice of environmental protection into the entire process of environmental governance, green
materials, green construction and housing industrialisation, leading the green life with green living environment. Vanke Group,complying with laws and regulations such as the Law of the People’s Republic of China on Work Safety, the Construction Law of
the People’s Republic of China, and the Environmental Protection Law of the People’s Republic of China, continuously improves
its environmental protection capability to ensure that its operations do not have any negative impacts on the outside world.

VX Qingdao Jimo Park

7.8

Operation

VX Wuxi Xinwu Wangzhuang Logistics Park

7.87

Operation

VX Wuxi Shuofang Airport Park

9.67

Operation

VX Nanning Liangqing Park

6.94

Operation

VX Tianjin Wuqing Park (Phase II)

8.49

Operation

VX Tianjin Ninghe Park (Phase I)

4.11

Operation

VX Tianjin Ninghe Park (Phase II)

4.31

Operation

Vanke Commitment on Avoiding Greenfield Development
Vanke adheres to the commitment on avoiding greenfield development. We refrain from initiating projects in national
nature reserves, farmland, green field, agricultural land and other greenfield areas. Prior to project development, we
conduct assessments considering key factors such as wastewater, waste gas, solid waste, noise, and ecologicalimpacts. Subsequently, we proactively implement measures to minimize these impacts. In instances where avoiding
greenfield sites is unavoidable, we strictly adhere to relevant laws and regulations.

VX Tianjin Binhai Park

6.58

Operation

VX Tianjin Jinghai Park (Phase I)

4.4

Operation

VX Tianjin Jinghai Park (Phase II)

6.68

Operation

VX Tianjin Jinghai Park (Phase III)

3.97

Operation

VX Kunming Airport Phase III

5.98

Operation

VX Nanning Hi-Tech Park

14.66

Operation

VX Nanning Liangqing Bonded Park

5.29

Operation

VX Shanghai Fengjing Campus

6.3

Operation

VX Changchun New District Campus

7.49

Operation

VX Nanchang Air Park

10.85

Operation

VX Zhengzhou Zhongmou Campus

5.42

Operation

VX Wuhan Jiangxia Bridge Park

9.4

Operation

VX Wuhan Yangluo Park

7.35

Operation

VX Jiaxing Haining Hi-Tech Zone Park

5.53

Operation

VX Nanjing Qixia Bonded Park Phase II

3.12

Operation

VX Wuxi Huishan Campus

7.82

Operation

VX Kunming Airport Phase I

12.22

Operation

VX Kunming Airport Phase II

5.87

Operation

VX Kunming Hi-Tech Park Phase I

3

Operation

VX Kunming Hi-Tech Park Phase II

7.3

Operation

VX Guiyang Airport Park

10.31

Operation

VX Urumqi Airport Park

19.26

Operation

VX Huai’an Jingkai Park

5.24

Operation

VX Hefei Jingkai Park

8.47

Operation

VX Shenyang Yuhong Park

2.84

Operation

Green environmental governance

We attach importance to environmental issues in land development and actively
promote environmental protection projects in land development and consolidation, riverpollution control and ecological restoration of lakes and reservoirs, to maximise the useof land resources and ecological value. For brownfield sites with soil contaminated,
we will continue to improve the brownfield risk assessment system, maintain close
communication with the government and assist in plans for soil remediation.
During the reporting period, the Group did not commit any significant violationsof environmental laws and regulations. We consistently adhere to the local policy
requirements of the project. Before project commencement, we undergo strict
environmental impact assessment and approval procedures, carry out earnest
feasibility and environmental impact assessments and registration of new projects, andmake development arrangements with the approval of local environmental authorities,
while announcing them on government websites for public scrutiny.

During the reporting period, theGroup

did not commit any

major violations of environmental
laws and regulations

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Soil remediation

Contaminated sites

In line with the Law of the People’s Republic of China on Prevention and Controlof Soil Pollution and other relevant regulations, Vanke formulated and updated
policies such as the Policy for Project Operation, Maintenance and Conservation
Management, performing its responsibilities for preventing and controlling soil pollution
as a property development enterprise. We established Wanchuang Qinglv (Beijing)
Environmental Technology Co., Ltd. (hereinafter referred to as “Wanchuang Qinglv”),
a professional environmental restoration company, to export technical services basedon Vanke's experience, carry out a series of rigorous surveys and assessments on
soil environmental quality for Vanke’s projects to be developed, and conduct in-depth
environmental surveys and risk assessments for the projects with potential risks of soil
contamination. These measures aim to accurately identify and address soil pollution,effectively preventing and avoiding the risk of soil environmental quality.
In order to better accomplish the tasks of soil remediation, Wanchuang Qinglv has
continuously improved its management system as well as innovation and R&D
capabilities. Wanchuang Qinglv obtained the ISO 14001 environmental management
system certificate, ISO 45001 occupational health and safety management system
certificate, and ISO 9001 quality management system certificate. Its subsidiary
Shenzhen Wanchuang Qinglv Environmental Engineering Co., Ltd. obtained the ISO
14001 environmental management system certificate, ISO 45001 occupational healthand safety management system certificate, and ISO 50430 environmental protectionengineering and construction management system certificate. These achievements
have laid a specialised and standardised foundation for soil remediation.
In 2023, Wanchuang Qinglv continually enhanced its innovation and standardisation
capabilities to raise the quality and efficiency of its soil remediation business, witha view to perfecting its environmental protection work and assuming its social
responsibility. During the reporting period, Wanchuang Qinglv participated in the
preparation of the Guidelines for the Development and Utilisation of RemediatedContaminated Sites, which applies to the investigation, design, construction, monitoringand maintenance of residential land and land for commercial and service facilities
after remediation. The Guidelines is still in the stage of soliciting opinions and revising
for review. If it is released, it will provide Vanke experience for the development ofbrownfield in the industry.

Patents for utility models
Soil contamination survey sampling device
Application: Authorised

Patents for utility models
A water purification function module for overhead
pools
Application: Authorised

99

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Certificates

Shenzhen Wanchuang Qinglv
Environmental Engineering Co.,
Ltd. obtained

ISO 50430

for environmental protectionengineering and construction
management systems

During the reporting period,
Wanchuang Qinglv applied for a
total of

8
4

Through the preparation of the Guidelines for Development and Utilisation of Remediated Contaminated Sites, we hope toshare our extensive experience in remedying brownfields with our peers. Experience with brownfield remediation comes fromour multiple practices. Entrusted by customers, we have successively carried out urban brownfield redevelopment such as theSoil Pollution Remediation Project for a Site in Shenzhen and the Soil Remediation Project for a Site of an Industrial Zone inShenzhen.

Soil Pollution Control and Remediation Project for An Industrial Site in Shenzhen

In 2021, we completed the preliminary assessment on soil contamination for an industrial site in Shenzhen. In June 2022,
it was announced that the nickel and hexavalent chromium content in the soil exceeded the Class II land use screening
value in the GB36600-2018 Soil Environment Quality Risk Control Standard for Soil Contamination of Development Land
(Trial). As hexavalent chromium exceeded the control value in some areas, the site is recognised as a polluted plot.
In April 2023, Wanchuang Qinglv undertook the construction of soil remediation project at the site. Through efficient
tools and perfect management mode, it took just six months to complete the project. The stage effect acceptance wasalso smoothly accomplished by the environmental management department in the district. It is expected that the final
assessment on the site will be completed by mid-2024 and will be removed from the restoration list by the end of 2024 tobe handed over to the enterprise for development and construction.

patents, of whichhave been authorised.

Patents for invention
A bioremediation solution, its preparation method,
and a method for remediating heavy metals in soil.
Application: Authorised

Patents for utility models
A boat-mounted surface rubbish collection device
Application: Authorised1002023 Sustainability Report

About This Report Report Summary Message Board Statement About Vanke

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Selecting green materials

Advancing green construction

We have actively responded to national policies in green building materials, and promoted R&D and innovation in such green
building materials, making positive contributions to the sustainable development of the industry. We believe that only bycontinuously expanding the coverage and use of green building materials can we reduce energy consumption and carbon
emissions in the construction field and contribute to the realisation of the national targets for carbon peaking and carbon
neutrality. We are continuously advancing the R&D system of the Group’s green building materials products, exploring theneeds of front-end projects, and continuously enhancing Vanke’s green building materials practice in combination with its green
building philosophy.

We strictly abided by the Environmental Protection Law of the People’s Republic of China and updated the Green Construction
Code for Building Projects. During the construction, we have fully considered the surrounding environment and the needs ofresidents, and adhered to the green development philosophy of “conservation and utilisation of materials, water, energy, andland”, creating a clean, tidy, comfortable and safe construction environment.

R&D and application of green building materials
Vanke Architecture Research Centre in Dongguan primarily focused on the R&D of green building materials such as ultra-thinstone, new inorganic anti-mould coatings, and aerogel insulation materials during the reporting period, to provide customers withenergy-efficient products and items that can withstand climate risks by improving the production efficacy and stability of building
materials.

Ultra-thinstone

We have applied a new process to reduce the thickness of natural stone from the traditional
15mm-20mm to 3-5mm, increasing the utilisation of mineral resources by 4-5 times. In theprocessing of products, the cutting saw kerf has been reduced from the original 3-4mm to0.5mm. On ultra-thin stone, we are in line with the national green and energy-saving policies
in resource utilisation, production energy-saving, and transportation energy-saving, reducing
carbon emissions.

In accordance with the requirements of the ISO 14001 environmental management system, as wellas the Standard of Environment and Sanitation of Construction Site (JGJ146-2004), the Green
Construction Guidelines (Notice J.Z. [2007] No. 223) and other laws and regulations, we hascontinuously improved the Management Standard for Safety, Health and Environmental Protectionin Site applicable to all projects under construction developed within the scope of the Group, anddeveloped implementation plans for materials, water, and energy consumption to standardise theon-site management of environmental protection during the construction. During the reporting
period, 66.7% of the Group’s business lines held ISO 14001 environmental management system
certificate. At the same time, the Group carried out civilised construction and environmental
management for project supervision units, general contracting units, and decoration units, had
an active communication with relevant parties on the environmental management system, andrequired all general contracting units to obtain environmental management system certification andimplement environmental management in the supply chain. During the construction, we conductednecessary communication and exchange with regulatory units or community residents in the projectsite regarding environmental and safety management at the construction site, in order to enhance
our green construction management capabilities.

Risk Points in
Environmental Impact
Soil

New inorganic
anti-mould
coating

Introduction
to aerogel
insulationmaterials

101

New inorganic anti-mould coating is mainly composed of special aluminate cement, polymer
materials, quartz powder and other materials. This composition retains the strength, durability,
weather resistance and A-level fire resistance of traditional cement, while being highly
environmentally friendly, highly anti-mould, easy to construct, and low in VOC (volatile organic
compounds), which further reduces the carbon emissions of the product throughout its entire
life cycle.

Aerogel is the solid material with the lowest thermal conductivity and density known at present.
Its density is just 2.75 times that of air. We use ultra-low thermal conductivity aerogel as raw
material, and combine it with nano pre-dispersion technology and emulsion to improve thethermal insulation and energy conservation. At the same time, the light decoration system will
not increase the main load of the building, with high bonding strength, class A flame retardant,
excellent environmental performance, easy construction and other characteristics.

Air

During the reporting
period,66.7%of the Group's businesslines held ISO 14001
environmental
management system
certificate

Responses

In construction site, exposed land is covered with concentrated piles of earth.
We strictly require earthmoving vehicles to be covered and must be washed before leaving. A combinationof fog cannons and spraying is used in the construction site, with scheduled start and shutdown, andautomatic start of dust reduction equipment to reduce dust concentration.

Waste

Wastes on the construction site are required to be classified and collected as harmful, harmless,recyclable, and non-recyclable. Construction waste should be collected, stacked, and promptly cleared.
A dedicated warehouse is set up on site to store fine building materials in a closed manner. High-altitude
waste is transported vertically. We urge the construction unit to remove fences and other temporary
facilities within the agreed timelines, comprehensively clean up the surrounding environment, and ensure
a clean site after completion of project.

Lighting

We use large lights including directional searchlights for on-site tower cranes to prevent strong light fromleaking out.

Noise

We identify the noise sources in the production area of the construction site, develop targeted noise
reduction measures based on the characteristics of the project and the surrounding environment, andclarify the noise reduction goals and requirements.

Electricpower

We develop a special electricity metering plan at the construction site to measure and control theelectricity consumption of large electrical equipment.

Water

We develop a special water metering plan for the construction site, reducing the transportation of mud andwater through pile foundation construction, setting up mud separation equipment, and achieving water
resource recycling. The construction vehicle washing tank is equipped with a three-level sedimentationequipment, so the filtered water can be recycled.

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Practicing Green Operation

Housing industrialisation
Through the industrialised construction system, the building quality and construction efficiency
have been improved, the consumption of energy and materials in the construction process has
been significantly reduced, the recycling of construction materials has been promoted, further
promoting the development of circular economy. Vanke has actively responded to national
policies related to building assembly, deepened its research on industrialised construction
systems, expanded the application of assembled buildings, and continued to promote theapplication of assembled buildings in Vanke’s projects.
During the reporting period, we strengthened R&D in assembly technologies, expanded theapplication of advanced assembly technologies such as quick construction and installation
systems, assembly decoration, and one-time molding of internal and external walls, to enhance
our lean construction capability and further reduce the unit energy consumption of ongoingprojects throughout their entire lifecycle.

Highlight
Technology

Application
Structure

Main structure

Quick connection andinstallation system
Secondarystructure

Assembled installation

Hard decoration

SDG 12 - Responsible Consumption and Production
Ensure sustainable consumption and production patterns.
In 2023, the application
housing industrialisation
projects accounted for more
than

90%

of new

construction projects

Technology Application
For vertical components, a prefabricated shear wall and grouting
sleeve connection system is adopted.
For horizontal components, composite panels and prefabricated stairs
are used to increase the prefabrication rate.
For the partition wall, assembled partition wall with ALC panel is used.
Dry floor heating, integrated bathrooms, and pipeline separation
technology are applied to enhance the results of prefabricateddecoration.

Changchun Widely Applies Assembled Building Technology
Changchun formulated Changchun Vanke Lean Construction System Version 2.0 to coordinate and standardise
the application of assembled building technology in Changchun, and continuously improve the coverage rate andprefabrication rate of assembled building in projects. In terms of assembled decoration, Changchun has achieved
breakthroughs and applications in dry-fasten tiles, new window waterproofing, prefabricated flashing, and othertechnologies, which have significantly reduced labour costs and risks while improving product quality and achieving
energy-saving and environmental protection.

Dry-fasten tile technology

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Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Prefabricated flashing technology

SDG 13 - Climate Action
Take urgent action to combat climate change and its impacts.
SDG 15 - Life on Land
Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests,
combat desertification, and halt and reverse land degradation and halt biodiversity loss.

Energy efficiency management
Retail property development and operations
In terms of commercial operation, we have formulated the Energy Conservation and Emission Reduction Management Systemand the Energy Conservation and Consumption Reduction Methods and Measures, making clear energy conservation andconsumption reduction management requirements for projects that have opened, are under construction or planned. In 2023,
we streamlined and summarised 24 energy-saving measures for refrigeration systems, lighting systems, and other systems,
as well as summarised and refined standardised specialised operation manuals for internal energy management, such as the
Operation Manual for Refrigeration Strategies for Air Conditioning Systems. The manuals have been widely applied in project
management and can be flexibly applied according to the specific circumstances of each project to enhance our ability to leanenergy efficiency management of commercial assets.
The energy efficiency management of commercial operations relies on an intelligent management platform and continuously
improves Vanke’s ability to manage commercial assets in a green and low-carbon manner through enhancing refinedmanagement and applying renewable energy.

Intelligent energy
management platform

Regular energy use analysis and facilities
and equipment modifications

Increased use ofrenewable energy

Continue to expand the use ofenergy management platform
and apply computer technology,
communication technology,
automated technology, andso on for remote monitoring,unified control, automatic billingand data analysis of electricity,water, energy and other systems,
providing data and information
support for normalised energy
management through intelligent
means.

We control the switching of lighting, airconditioning, escalators and other facilities
in public areas, conduct real-time control
of energy consumption, carry out energy
use analysis on a monthly basis andformulate reasonable control measures
based on the analysis results;

We actively promote and utilise
micro-grid technology. We installed
photovoltaic power generationequipment on the roofs and parking
lots of shopping malls to expand
the application of green energy. Asof the end of the reporting period,
SCPG has 22 photovoltaic power
generation projects, including 10
new projects in 2023, generating a
total of over 16,437,000 kWh.

we promote targeted renovation throughenergy use analysis. For example, we
installed shade nets on the sunroofs ofshopping malls in summer to reduce thetemperature in the common areas below
the sunroofs and reduce the energy
consumption of refrigeration equipment.

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Shenzhen SCPG Centre Promoted Micro-grid Renovation and Application of Photovoltaic,
Energy Storage, Direct Current and Flexibility (PEDF) Technologies
In October 2023, the Shenzhen SCPG Centre and its partners showed the phased
results of the application of photovoltaic, energy storage, DC fast charging, and600kW fully-liquid cooled supercharging technologies in commercial complexes. By
applying key technologies such as photovoltaic power generation, energy storage,
DC power distribution, and flexible power usage, as well as applying the intelligent
micro-grid energy management system, SCPG enables self-regulation andautonomous optimisation of power usage in buildings.
In addition, Shenzhen SCPG Centre has built liquid-cooled supercharging stations,fast charging stations for solar photovoltaic, energy storage, charging and inspection
equipment, destination charging stations, V2G, and other types of charging stations
to meet the needs of owners’ multi-level and multi-scenario energy supplement.
SCPG has provided application scenarios for the promotion of green mobility andefficient use of energy, creating a benchmark for the green, low-carbon and energysaving development of large commercial complexes.

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Logistics and warehousing
Focusing on the theme of reducing energy consumption and improving efficiency, VX Logistics is committed to building intelligent
modules for the logistics park that reduce energy consumption and improve efficiency by refining the management measures,enhancing the overall management effectiveness, and carrying out a comprehensive update and transformation of technology
and equipment. In 2023, it issued documents such as the Guidelines for Energy-saving Operation, the Guidelines for Parameter
Settings, and the Energy-saving Operation of Refrigeration Systems. It also optimised parameter settings and improved theeffectiveness of the park’s refrigeration system through the implementation of staggered peaks, standardised parameter settingsof each unit, and energy-saving operations for the refrigeration system, achieving the goal of energy conservation and reductionof energy consumption.

Integrated fast charging stationfor optical storage and charging
inspection equipment

Property services
Vanke Service, a subsidiary of Onewo, is committed to reducing the energy consumption of property operations throughscientific management and technological innovation to minimise carbon emissions from property operations and to ensurethat energy systems and equipment are always in the best possible condition for energy conservation. In 2023, Vanke Service
formulated the Management Code for Energy Conservation and Consumption Reduction, which provides a scientific basis
and working guidelines for residential energy conservation management. The code specifies the responsibilities of each levelfor energy conservation and consumption reduction. The Facilities and Equipment Professional Committee is responsible forassessing and promoting energy-saving technologies and equipment, facilities and equipment experts introduce energy-saving
solutions based on project characteristics, and the project public maintenance professional manager is responsible for technicaltransformation, the development and implementation of energy consumption targets and management plans, and the recordand analysis of energy consumption data.
In addition, Onewo focuses on improving the energy efficiency of residential projects under management by carrying out lighting
system upgrades and energy-saving renovations of equipment such as air-conditioners and elevators. It puts great effort into
enhancing the use of renewable energy to strengthen energy management, improve the energy efficiency of facilities andequipment, and save energy consumption and costs, achieving a win-win result in terms of both environmental and economic
benefits.

As the central system of intelligent management and intelligent energy conservation and consumption reduction, VX-EOS
connects all the equipment in the park to the operating system to achieve unified control over them. With the open-source
algorithm, it is possible to optimise the scheduling of all the equipment, independently adjust the operating parameters, andconducts real-time monitoring and data collection to effectively analyse and manage energy consumption in the park, and create
the optimal equipment energy consumption portfolio.
VX Logistics continues to promote distributed photovoltaic technology
and enhance the coverage of distributed photovoltaic in its logistics
parks. By summarising the experience of benchmark parks, itestablishes a standardised system for the construction of distributed
photovoltaic systems in parks (including technical requirements,
construction duration, acceptance requirements, bidding lists,and processes). It gradually achieves full coverage of distributed
photovoltaic on the rooftops of all park buildings and creates industryleading, high-yield rooftop distributed photovoltaic power plant assets
starting from power generation efficiency, engineering quality, andoperation and maintenance levels, to assist in energy conservationand emission reduction. As of December 2023, 19 rooftop-distributed
photovoltaic projects of VX Logistics have been connected to thegrid, with a total installed capacity of 52.02 MW and a cumulative
generation capacity of more than 22,000 MWh.

Strengthen the carbon emission
management in Cold Chain Park

97.3

94.1
65.9

2021

2022

2023

Greenhouse gas emission intensity of cold chain
logistics parks (including transportation)
Unit: kg CO2e/RMB million revenue

Comprehensive layout of warehouse rooftop photovoltaic in VX Tianjin Dongjiang Port Cold Chain Park

Basement Energy-saving Renovation
Vanke Service actively responds to the national call for energy conservation and emission reduction by continuously
improving the energy management of basement lighting. It actively carries out energy-saving renovations for basement
lighting by replacing the original constant-bright lamps with microwave radar-sensing dual-bright lamps, which remain brightly
lit as pedestrians or vehicles pass by and automatically switch to the micro-bright mode after about 10 seconds once theyleave the sensory area.
By the end of 2023, Onewo had implemented energy-saving renovations for more than 1.2 million lamps in basements in 1,180
residential communities across the country, which is estimated to save approximately 70,000 megawatt-hours of electricity
per year over the life of normal lamps.

Hotel and resort
In terms of hotel operations, we implement a comprehensive energy management programme, including the establishment ofenergy comparison tables for the same period, equipment file lists, area energy usage statistics, and data analysis tables, as wellas the implementation of intelligent regulation strategies for equipment like central air-conditioning, public area lighting, and water
heaters, to achieve refined energy-saving measures based on varying air temperatures, occupancies, and seasonal demands.

105

In VX Tianjin Dongjiang Port Cold Chain Park,
all warehouse roofs (six cold storage buildings)
are covered with photovoltaic units, using highefficiency photovoltaic modules with a conversion
efficiency of up to 21.2% and an inverter efficiencyof 98.6%. The roof area is 52,454 square metres,
and the total installed capacity is about 5.99
MW. According to the estimation, based on theinternational standard ASHRAE90.1-2010 EnergyStandard for Buildings Except Low-rise Residential
Buildings, the energy conservation rate of thepark reaches more than 57%, and roughly 99,800
tons of carbon dioxide is reduced through theenergy conservation and distributed photovoltaic
application within the whole life cycle.

VX Tianjin Dongjiang Port Cold Chain Park106

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Process management

Data centre
Vanke continuously pays attention to carbon emission managementof data centres and actively promotes the construction of green andlow-carbon data centres via measures such as usage efficiency
optimisation, business upgrading, and management measures
improvement. We have completed the transition from traditional data
centres to public cloud data systems. In 2023, Vanke’s data centres
continued to implement the ISO 14064-1 international greenhousegas emissions standard to improve resource efficiency and reducegreenhouse gas emissions by 1,498.69 tons year on year.

Total carbon emissions from leasing data centres in 2023
decreased by

1,498.69

tons compared to 2022

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Enhancing carbon management of the
Leasing Data Centre

3,243.69
2,625.19
1,126.5

2021

2022

2023

Carbon emissions of the Leasing Data Centre
Unit: Tons of CO2 equivalent

Property services

Hotels and resort

Continuous optimisation of the water system,
including water for greening, comes fromrainwater recovered from rainwater stations andair conditioning condensate. Water for bathroom
cleaning comes partly from treated hand-washingsink water.

Water-saving bathrooms and water systems areused in guest rooms and common bathrooms inhotels under construction.

Retail property development and operations

Logistics and warehousing

Overall water efficiency is improved by purchasingwater-saving equipment, installing induction watersaving equipment, conducting regular inspections
and maintenance of bathroom water facilities, andimplementing optimised maintenance wateringschedules.

We employ high-efficiency water-saving appliances
for our indoor sanitary ware, as well as metredindoor sanitary ware and fittings in the park to
manage water use and find more water-saving
possibilities by tracking water consumption.

Water resources management
Vanke attaches great importance to the use and management of water resources, and our relevant water conservation policies
are implemented with reference to the water conservation policies advocated by the local governments of each project. We
focus on the water conservation and water recycling in the whole process of operation and continue to strengthen our efforts inwater conservation management to ensure the improvement of water resource utilisation efficiency.
During the reporting period, all of Vanke’s water resources originated from municipal water supplies, and no difficulties wereobserved in the process of water extraction. We have identified, assessed, and addressed risks that may arise in areas wherewater resources are under stress. We have also undertaken targeted initiatives to manage water conservation and reuse and tocontinuously improve water efficiency and reduce water consumption.

Water-saving publicity

For the hotel business, we formulate ten
key points to focus on at work to increaseawareness of water conservation and establish
the value of water conservation culture.

We set up water-saving reminders andpublicity signs at water points in our businessand office areas.

Through the joint adoption of various measures, we have continuously improved water utilisation efficiency and reduced water
wastage.

Source management

Platform monitoring

We give full consideration to water use in project investment, development, design, construction, and operation, as well as
minimise resource wastage and wastewater generation through water reuse.
Business
operation
Through establishing a digital intelligent cloud platform, the water consumption of operational projects is strictly
monitored, and operational energy efficiency indicators such as water consumption per GFA and water consumption
per RMB10,000 of turnover are continuously monitored to realise remote monitoring, unified control, and data analysis.

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Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Green leasing

Green finance

We are committed to maintaining long-term, mutually beneficial partnerships with our tenants and working closely with them topromote green shopping malls, green offices, energy-efficient operations, and environmentally friendly renovation materials, todeepen green leasing and incorporate sustainable practices into operations throughout the lease life cycle. Hazardous waste
within our scope of operations requires segregation and separate disposal. They have to be transferred and disposed of throughlicensed waste handlers who meet the eligibility requirements.

In the context of the national “carbon peaking and carbon neutrality” goals, green, low-carbon and healthy buildings are expected
to be developed at a fast pace, and green finance will help accelerate the development of the green real estate market. The
companies with good ESG performance have greater advantages in the field of green financing. Vanke will continue to grasp theopportunity to expand green and sustainable finance.

We are actively pursuing net leasing, which requires all tenants to pay for their own energy and resource costs arising fromproduction and living, thereby encouraging tenants to implement green operation measures and develop a green lifestyle. At thesame time, we continue to incorporate ESG initiative clauses into the standard lease contract covering commercial development
and operations business and the rental housing business.

Property development
In 2023, we updated the Tenant Handbook, the Renovation Handbook, and the Renovation Material Brand List to
provide guidance and advice references on pre-design, selection of green materials, green construction process, final
acceptance, and other renovation process for new tenants in need of renovation or existing tenants who are ready tocarry out renovation works.

Retail property development and operations
In 2023, we have incorporated green leasing initiatives into all our contracts to encourage tenants to minimise theenvironmental impact of their operations, improve energy and water efficiency, reduce waste, and promote the physicaland mental health of their employees.

Rental housing
In the rental housing business, all new rental contracts signed by tenants of Port Apartment in 2023 have included green
initiative clauses, such as reducing resource consumption and energy waste and compliance with rules on garbage
classification and recycling, etc., and signing of 100% paperless tenants’ contracts has been achieved.

As the sole Chinese real estate enterprise in the Green Finance Working Group (“GFWG”), Vanke has always adhered to thephilosophy of green and low-carbon and has long been committed to the carbon emission reduction and green sustainable
development of property development to explore and support the construction of low-carbon ecology in an innovative crossborder way by public welfare organisations.
Vanke has established the Green Financing Framework (“GFF”) in 2021. Under the GFF, Vanke can issue green financing
instruments, including green bonds and green loans. The proceeds are used to finance and refinance existing and future assetsthat improve Vanke’s environmental performance. We specify that the net proceeds will be used for green buildings, renewableenergy, pollution prevention and control, and sustainable water and wastewater management. For more information on the GFF,
please refer to our website: Vanke Green Financing Framework
The GFF received a Second-Party Opinion from
Sustainalytics in 2021 based on the Green Bond
Principles 2018 and the Green Loan Principles
2020.

Vanke has issued three tranches of green medium-term notes with a total size of RMB7 billion
2022 Phase I Green
Medium-term Notes

2022 Phase II Green
Medium-term Notes

2022 Phase III Green
Medium-term Notes

Size (RMB100
million)

30

20

20

Issue date2022-07-19

2022-08-10

2022-09-19

Maturity date2025-07-21

2025-08-12

2025-09-21

Maturity (years)

3

3

3

Coupon rate (%)

3.0

2.9

3.2

Green investment
We firmly believe that a company’s ESG performance fully demonstrates its excellence in environmental protection, social
responsibility, governance model, and risk control, and ensures that the organisation is capable of creating long-term value in astable and sustainable manner that meets the growing concerns and expectations of society, investors, and customers regarding
corporate sustainability.
Vanke places a high priority on its sustainable investment tasks, establishing a fund management company, Vansek Evergreen
Fund, in 2022 together with Temasek Holdings Private Limited in Singapore, that focuses on green real estate equity
investments in China. Vansek is committed to promoting the application of ESG practices in the Chinese real estate market
through green investments in projects that meet the Chinese Green Building Standard’s “two-star” rating or higher.

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Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

SocialPractices
Our Strategy
Striving for The Best as a Team
Win-win partnership
Shared development

Response to SDGs
SDG 3 - Good Health and Well-being
Ensure healthy lives and promote well-being for all at all ages.
SDG 4 - Quality Education
Ensure inclusive and equitable quality education and promote lifelong learning
opportunities for all.
SDG 5 - Gender Equality
Achieve gender equality and empower all women and girls.
SDG 8 - Decent Work and Economic Growth
Promote sustained, inclusive and sustainable economic growth, full and productive
employment and decent work for all.
SDG 10 - Reduce Inequalities
Reduce inequality within and among countries.

SDG 11 - Sustainable Cities and Communities
Make cities and human settlements inclusive, safe, resilient and sustainable.
SDG 17 - Partnerships for the Goals
Strengthen the means of implementation and revitalise the global
partnership for sustainable development.

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Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Supply chain management

Our Strategy

Goals

Philosophy
We uphold the culture of “striving for the best as a team”, providing every employee withan equal, respectful, inclusive, and diverse workplace environment and opportunities
and space for growth. We advocate a “win-win partnership”, guided by the philosophy ofsustainable development, to promote the progress and development of the industry; wepromote “shared development”, and interpret corporate social responsibility with actions.

Goals and progress

Ensure 100% due diligence coverage oversuppliers.

In 2023, the due diligence coverage rate oversuppliers was 100%.

100%
achieved

We ensure that 100% of purchased aluminium alloy
profiles use a chrome-free passivation process,100% of the purchased wood is from known
sources, and 100% of our materials come fromGreen Supply Chain Action whitelisted suppliers.

In 2023, we ensured that 100% of thepurchased aluminium alloy profiles use achrome-free passivation process, 100% of
the purchased wood is from known sources,
and 100% of our materials come from Green
Supply Chain Action whitelisted suppliers.

100%
achieved

Striving for The Best as a Team

Health and safety of employees and contractors
Goals

Progress

Progress

SDG 3 - Good Health and Well-being

Group

Ensure healthy lives and promote well-being for all at all ages.

After a comprehensive review of the previous
year’s workforce, we determine the physical test
programme and set targets for the year. The
physical test requirement for all divisions andfrontline entities: Participation rate ≥ 95% andexcellence rate ≥ 90%.

In 2023, all units of the Group participatedin the physical test, with an employee
participation rate of 99.15%, an increase of
1.32 percentage points year-on-year, and an
excellence rate of 97.66%, a growth of 0.29
percentage points year-on-year.

Enhance production safety capacity to ensure no
general or above grade production safety accidents
under our responsibility. The production safety
accidents with a general or above grade under
the responsibility of related parties (including
contractors) decreased by 10% year-on-year.

In 2023, there were no production safety
accidents with a general or above grade
under our responsibility. The production
safety accidents with a general or above
grade under the responsibility of relatedparties (including contractors) decreased by
10% year-on-year.

SDG 4 - Quality Education
100%
achieved

Ensure inclusive and equitable quality education and promote lifelong learning
opportunities for all.
SDG 5 - Gender Equality
Achieve gender equality and empower all women and girls.

Maintain the lost time injury rate (“LTIR”) caused by
employees’ occupational injuries at 1.2 or lower andcontinuously track employees’ LTIR.

Ensure safety training covers all employees and allcontractors.

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SDG 8 - Decent Work and Economic Growth100%
achieved

Promote sustained, inclusive and sustainable economic growth, full and productive
employment and decent work for all.
SDG 10 - Reduce Inequalities
Reduce inequality within and among countries.

In 2023, the LTIR caused by occupational
injuries was below 1.2.

Vanke organised regular safety training with
100% coverage of safety training for theGroup’s employees and contractors in 2023.

100%
achieved

100%
achieved

Vanke regards its employees as the driving force of innovation and creation, adheres to the philosophy of “striving for the best
as a team” based on the principles of “consensus, co-creation, joint undertaking and sharing”, and is committed to building abetter workplace where employees can work together with Vanke to create value. We continue to improve the policy system
for recruitment and employment to protect employees’ rights and interests. By creating a diversified working environment andcultivating a talent team with high potential, we share development with our employees. At the same time, we care for thephysical and mental well-being of our employees, actively improve occupational health and safety management, and enrich our
remuneration and benefits system. We are dedicated to offering employees an equal, inclusive, and co-creative development
platform. In 2023, Vanke was honoured with the “Human Resources Excellence Award” by 51job.com, “HR Digitalisation Best
Practice Award” by Moka, “Best Employer of the Year” by Liepin, “Best Employer of the Year” by Zhaopin.com, and “Favourite
Talent Employer Award” by BOSS Zhipin.

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Protection of employees’ rights and interests

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Fair performance-based remuneration

We strictly abide by relevant laws and regulations and employment policies, formulating and implementing the Code of Conduct
for Employees and the Vanke Human Resources Manual. We fully protect employees’ legitimate rights and interests in theprinciple of fair, just, and open employment. In order to better serve employees and protect their rights and interests, in 2023,
Vanke conducted a group-wide audit of human resources operations, focusing on remuneration, benefits, onboarding, andoffboarding, to ensure all internal and external rules and regulations are strictly implemented in each unit and employees’ rights
to obtain labour compensation, rest, vacation, and benefits are not infringed upon. Vanke is committed to providing employeeswith a friendly and warm career platform for partnership and struggle.

Compliant employment

Vanke adheres to the philosophy of “providing competitive remuneration in the industry in accordance with market-oriented
principles to retain and attract outstanding talents”, and upholds the compensation orientation of “create more, share more, pay
more for more work”, and constantly revises the Group’s remuneration and benefit system and types of protection.

In 2023, the social insurance coverage rate of Vanke

In 2023, the ratio of basic salary and remuneration of

employees was

women to men employees for the same level was

Vanke strictly abides by the Company Law of the People’s Republic of China, the Labour Law of the People’s Republic of China,
and other relevant laws and regulations and follows all rules regarding recruitment, dismissal, and working hours, resolutely
eliminating discriminative behaviours due to gender, age, ethnicity, nationality, religious beliefs, or other social and personal
factors, and providing every employee with fair employment and development opportunities.
We have always upheld international standards related to human rights, such as
the Universal Declaration of Human Rights, the Guiding Principles on Businessand Human Rights, the International Labour Standards of the International Labour
Organisation (“ILO”), and the Voluntary Principles on Security and Human Rights.
We respect the human rights issues in various countries and regions, and strive
to maintain coordination with the societies of various countries and regions when
conducting business.
Vanke emphasises recruitment compliance, respects candidates’ feelings,
and takes various measures to ensure the fairness and professionalism of therecruitment system. The Group has formulated internal regulations and policies
such as the Recruitment Manual to regulate the recruitment process from all
aspects. In terms of interviewer training, we have carried out training activities suchas campus recruitment interviewer empowerment. Through training for interviewers
on the recruitment process and clarifying structured interview requirements, weensure the fairness and professionalism of interviews. Vanke attaches importanceto the optimisation of information technology recruitment, achieving online,
paperless, and self-service of the whole process from application to onboarding,which significantly improves the efficiency and experience of new employee
onboarding. Taking the safety officer position, which has the highest recruitment
demand, as an example, the average waiting period from application to onboarding
can be shortened by six to eight days. In some cases, it is possible to achievesame-day recruitment and onboarding.
Vanke prohibits any operating units and partners from employing child labourand forced labour. We have strict requirements for suppliers and contractors,
explicitly forbidding the employment of children under the age of 16 and extending
protection of employee rights and interests throughout the value chain all the time.
In 2023, Vanke had no operations that employed child labour, arranged workers toengage in hazardous work, or were at risk of forced employment or forced labour.
The Group’s units iterated and updated their Employee Handbook by explicitly
adding protection of employees’ rights and interests clauses.

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Compensation
management

In 2023, Vanke recordednorisks or behaviours

associated with child labour andforced labour.
Performance
management

Compensationand performance
communication

100%

1:1

We have formulated a Salary Scale applicable to all employees within the Group, graded
employees and fixed their salaries taking into account all factors such as employee’s
abilities. We regularly review the salary scale and remuneration of employees annually
and apply the principle of equal pay for men and women. To align and support thedevelopment of diverse businesses, during the year, Vanke carried out a Group-widereform of its remuneration system and adjusted the salary structure of its employees
to provide more market-competitive salary levels. The adjusted remuneration plan isscheduled to be implemented in 2024.

We standardise the performance evaluation level and the standards of employee
appointment, remuneration, and development. We also advocate a performance culture,continuously improve performance management, and support and help employees
grow and develop. Each year, Vanke conducts mid-term and annual reviews covering
all frontline business units around performance achievement to strengthen performanceorientation and ensure performance fairness. During the mid-term performance review
in 2023, we conducted a special “redeployment of personnel” initiative. Focusing on
reviewing individuals based on their performance achievements, we selected andappointed cadres from the winning team, identifying individuals with the ability to achieve
success. In doing so, we create an organisational culture that encourages new forces,
where the capable are promoted, the average are given opportunities, the mediocre aredemoted and the underperforming are gradually phased out.

We reward employees based on individual performance and corporate performance. At
the same time, we actively boost our performance communication with employees toensure that the performance evaluation of the employees is fair and just, and consistent
with their actual performance. We also provide feedback and support for the clarificationand improvement of their abilities. We conduct performance interviews and year-end
reward interviews with the employees after the performance evaluation to give feedbackon their performance. The department/project partners provide one-on-one feedback on
employee work performance and offer guidance to give employees the necessary help
and support on their growth and development path. To protect employee performancerights, we have established the performance appeal process to ensure that the ideas of
employees can be effectively fed back and promptly replied to.

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Diversity, equity and inclusion

Safety management assurance system

Vanke believes that corporate excellence depends on the continuous creation of a diversified, equal and inclusive workplaceculture. At Vanke, each employee’s individual value, unique perspective, and contributions will be respected and recognised. In
our corporate culture, we advocate gender equality, promote differentiated skills, and emphasise the creation of a diverse talentteam. In practice, we provide fair and non-discriminatory remuneration for all employees, ensure equal opportunities for all, strive
to eliminate discrimination or arbitrary dismissal of employees, and continue to improve the inclusiveness of the workplace andthe sustainability of the Company’s development. In 2023, Vanke Group had no incidents involving discrimination, harassment,
or fraud towards our employees. Vanke actively encourages its employees to report any instances of unfair treatment. Upon
receiving a report, our internal inspection department conducts an independent investigation to ensure that each case is handled
fairly. The management body will be responsible for overseeing the subsequent resolution process, making sure that employees’
legitimate rights and interests are fully protected and respected.

Diversified Talent Structure

Male

Number of
employees byage

Number of
employees byregion72,578Aged 29 and below 50,088

Chinese mainland		

Aged 30-49

75,196

Hong Kong, Macao, and Taiwan 198

Aged 50 or above

5,813

Overseas		

130,852

47

Health and safety
Employee health and safety is the top priority in our operations management. We strictly abide by the laws and regulations
such as Work Safety Law of the People’s Republic of China and the requirement of ISO 45001 Occupational Health and Safety
Management Certification. We continue to improve corporate policies and assurance systems regarding occupational healthand safety management. Occupational health and safety goals are an important component of Vanke’s sustainable development
safety goal performance. We perform regular supervision and inspections on goal achievement, promote the achievement of
the goal through safety risk investigation, and occupational health and safety training and assessments. We are dedicated tocreating a safe, healthy, and comfortable atmosphere, enabling employees to live healthily and work happily in Vanke.

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Safety management structure
The Board of Directors of Vanke is responsible for supervising and coordinating occupational health and safety strategy andperformance and set up health and safety production committee. The Board member acts as the chairman of the committee,
and safety management executives from the engineering departments of the development and operation headquarters act
as members. The committee reports health and safety performance to the Board of Directors regularly. Meanwhile, we haveestablished the “Group-regional BGs-projects” three-level safety management structure, with the Group responsible forcentralized health and safety management.
Regionally, we have set up regional production safety management committes composed of the safety experts and safetyengineers of regional companies. Furthermore, Vanke assigns safety management heads to seven subordinate regional BGs,
who form a production safety management team with personnel from the engineering department of the Group to communicate
specific safety issues of regions and the Group. Vanke links improvements in health and safety performance to executives’ andrelevant employees compensation, which is assessed and reviewed on a yearly basis to continuously improve the occupational
health and safety performance of Vanke.
To ensure the effectiveness of the top-down centralized safety management system, we have established an information
reporting system that requires safety incidents to be reported to the Company’s top management as soon as they occur. An
incident report should include seven main elements, including the cause of the incident, and it should be emailed to the relevant
management of the Group within 24 hours from the occurrence of the incident. Health and safety production committee holdmonthly safety production meetings to standardise our safety management system guidelines and bottom-line standards,
conduct enhancement training for safety pain points, participate in accident investigation and handling, and carry out iterative
enhancements on safety management measures.

Number of
employees bygenderFemale 58,519

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Safety management policies
Vanke has established a supporting safety management system and implements the accountability system for safety incidents.
We have formulated the group-wide health and safety policy, Measures for the Control of Production Accidents and required allbusiness lines of the Group, suppliers, contractors, and other partners to abide by this policy. This group-wide health and safety
policy defines liability for production safety accidents and adopts the one-vote veto mechanism for responsible management
personnel and responsible cooperative units. In 2023, we issued the Management Regulations on Production Safety and Quality
Incidents in Development and Operation Business to further define the accountability requirements for personnel responsible
for safety incidents. It specifies that the appraisal results of health and safety improvement and performance should be taken
as a factor in the performance appraisal of companies and management at all levels and links the compensation of heads ofengineering departments of relevant subsidiaries, first responsible management personnel of companies, and other responsible
executives to their promotion opportunities.
Vanke keeps standardising occupational health and safety management, and actively promoting safety accreditation. As of theend of 2023, Vanke Service, Cushman & Wakefield Vanke Service, and SCPG all passed the ISO 45001 occupational healthand safety management system certification. Vanke conducts annual internal audits and triennial external audits of health andsafety policy implementation and health and safety performance.

1182023 Sustainability Report

About This Report Report Summary Message Board Statement About Vanke

Achievement of safety management goals

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Safety and health management actions

Vanke Production Health and Safety Commitment
Vanke firmly believes that safety is the cornerstone of corporate development. To this end, we committe that
we will spare no efforts to maintain a safe and healthy working environment to ensure the well-being of every
employee and partner. We set quantitative safety production targets as follows:
No production safety accidents of general or higher levels under our responsibility; reduce the number of
production safety accidents of general or higher levels under the responsibility of related parties (including
contractors) by 10% year on year;
Maintain a Lost Time Injury Rate (“LTIR”) at 1.2 or lower and continuously track employees’ LTIR.
To achieve these targets, we will continue monitoring quantitative health and safety metrics and performance of
employees and related parties from the following four aspects of improving assurance measures for construction
safety, intensifying production safety inspections, carrying out routine health and safety management ofrelated parties, and strengthening the safety awareness of employees and related parties. This will ensure
improvements in our production safety capacity.
We believe that production safety is more than a commitment and is our responsibility to every employee andpartner. Vanke will work hand-in-hand with all stakeholders to create a zero-harm working environment.

Safety Production Targets

Annual Progress

Vanke takes multiple assurance measures for the achievement of safety goals, including building a special assurance systemfor construction safety, carrying out production safety risk investigations, caring for employees’ health and safety, and offeringsafety awareness training. We are committed to continuously improving relevant assurance measures to minimise incidents andensure that employees can work efficiently in a safe environment.

Construction safety assurance
For the achievement of health and safety goals, we continuously refine our safety management work from four aspects as
iterative assessment system, capacity building, standardised behaviour, and closed-loop system.
Four Aspects of Construction Safety Management

Continuously update theengineering safety and quality
assessment system

Improve the assessment areas based on the development of new technologies
and techniques, increase the assessment dimensions, and update the assessment
rules to form a more realistic and comprehensive evaluation of the project.

Maintain long-term capacity
building on track

Ensure 100% coverage of safety and quality capability training, implement
assessment and certification for induction, and conduct in-depth discussion of
special topics combining pain points and difficulties to enhance capability.

Standardise safety and quality
management behaviour

Develop standardised management actions for physical and human defence, create
standardised management processes for quality management, and establish rest
areas management methods and a safety grid management system.

Guarantee a closed-loop
management process

Formulate pre-risk avoidance actions including lean engineering planning,decoration planning, delivery planning, programme approval, assess problematic
closed-loop activities such as look-back, gate pulling, and punishment to achieve
improvement and optimisation through reporting and management team review.

No production safety accidents of general or higher levels under our responsibility;
Reduce the number of production safety accidents of general or higher levels under the
responsibility of related parties (including contractors) by 10% year on year.

100%
achieved

Maintain a Lost Time Injury Rate (“LTIR”) at 1.2 or lower and continuously track
employees’ LTIR.

Detailed Management

LTIR (per 1 million working hours) from 2021 to 2023 (%)

Number of days lost due to work-related injury

LTIR (per 1 million working hours)

760
536

0.0129

234

2021

2022

0.0061
2023

2021

2022

0.00992023

Lost time injury rate (“LTIR”) (employee) represents the number of injuries per 100 employees per year. It is calculated as “total number of injuries
multiplied by 200,000 and then divided by total 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.

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Production safety risk investigation

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Cultivation of safety awareness

Vanke has formulated the Comprehensive Inspection and Work Review Manual and has been conducting comprehensive
online and offline inspections, including quarterly safety compliance inspections and safety evaluations for all projects for fullcoverage inspection on major risk points and on the implementation of safety management in the construction process. In 2023,
we continued to use safety management tools, such as the Safety Rating Scale and the Traffic Light Mechanism Checklist. We
engaged professional third-party organisations to conduct analytical evaluation of key risk points at stages of construction anddelivery across all operations, and we urged rectifications of any identified risks.

Vanke is committed to enhancing the awareness of production safety among all related parties in the industry chain. We offerdifferent forms of safety training to all relevant personnel, including its own employees and employees of its suppliers andcontractors, and publicise safety regulations at each construction site in a targeted manner. Every year on 12th of November, theGroup holds the “Production Safety Day” event to spread safety knowledge to all engineering system personnel.

Sample of risk points for third-party assessment

Risk of Fall from Height and Strike by Objects

Risk of Crane Injury

Check whether the height of the protective railing of
the suspended platform meets the requirements ofregulations, whether the safety rope is independently
fixed at a reliable position of the building, whether
nylon rope or steel wire rope is used, and whether
the handling frame is erected, and a staff passage isprovided in accordance with regulations.

Check whether the construction lift is provided with thelift door flap, and whether each lift meets the principlethat “each machine must have a separate switch box,
which should be installed with a knife switch and aleakage protector, with one switch only managing one
machine”.

Risk of Equipment Collapse and OverturnConstruction and Management Behaviours

Check whether key equipment is provided with antioverturn measures in accordance with constructionplans, and whether all parts are properly connected andat design strength, and are not damaged, missing or
improperly configured.

Check the construction site access management,material staking and waste staking and discharging
status, whether real-name management is adopted forworkers at the construction site, as well as the coverageof safety management personnel.

In 2023, the Company organised third-party safety unannounced inspection and evaluation, covering
projects under construction.
of

2,574

4

online safety inspections and

2

100%

of theoffline safety inspections have been conducted and a total

sections were assessed to ensure the safety of production.

Health and safety management of related parties
The Company pays keen attention to the health and safety assurance for employees of contractors. In its contracts with
contractors and other partners, it explicitly proposes health and safety requirements for contracts of the same extent as internalmanagement standards. It also conveys to contractors the same health and safety policies as those for its employees andrequires contractors to strictly abide by national, local, industrial, and corporate laws, regulations, and rules on occupational
health, safety, and environment and input all human, financial, and property resources necessary for health and safetyassurance.

121

In 2023, the Health and Safety Production Committee held safety

The coverage rate of safety training for employees

training sessionsof the Group and contractors is

91

times, and organised exams correspondingly.

100%

VX Logistics Organised the “Safety Production Month” Event

June 2023 marks the 22nd “Safety Production Month” of China. VX Logistics organised the property service centres of all
business regions and parks in China to carry out the “Safety Production Month” event themed on “Everyone Highlights
Safety and Can Respond to Emergencies”, which was rich in content and form, strengthening employees’ safety
awareness and emergency response skills.
In terms of first aid training, parks delivered
theoretical and practical lectures andmade on-site demonstrations with humanbody models. One-to-one guidance andoperation drills were offered to employees
who participated in training, and personnel
injuries were simulated. The training
covered first aid and CPR, trauma rescue(hemostasis, bandaging, fixation, andmoving) operations and the responses
and handling methods for common
emergencies.
Adhering to the service philosophy of“Everything is under control”, this “Safety
Production Month” event strengthened
the safety awareness of all persons in theparks, improved employees’ emergency
response capacity of “Everyone Highlights
Safety and Can Respond to Emergencies”,
and laid a solid foundation for sustainableproduction safety of the Company.

Firefighters simulate actual personnel
injuries

Employees in the park participate
in the fire escape drill

First aid and CPR training

A group photo of participants in the“Safety Production Month” event1222023 Sustainability Report

About This Report Report Summary Message Board Statement About Vanke

Headquarters’ training system

Care about employees’ health
Vanke attaches great importance to employees’ health. We not only provide free physical examination for all contract employees
but also hire professional third-party institutions to perform physical tests for employees, covering all employees of the Group.
Test objectives are set based on five central functions of the Group headquarters, and the participation rate of each function
was required to be ≥95%, and the excellence rate of each function was required to be ≥90%. The employee participation rateand excellence rate in the physical tests are connected to the year-end bonus of the management of the centres they serve toencourage all employees to pay active attention to their health.

In 2023, all units of the Group participated in the physical test, with an employee participation rate of
of

1.32%

over 2022, and the excellence rate was

97.66%, a growth of

0.29%

99.15%, an increaseover 2022

Employee training and development
Upholding the philosophy of “highly unified cultural heritage and diversified talent training”, we have built a general training
system for the headquarters and BG/BU-based distributed training systems, linked by the “V-LET'S SHARE Learning Platform”.
At Vanke, we advocate all employees to take the initiative to seek learning opportunities, encourage them to learn in practice,and create space for strivers to challenge themselves, learn and develop continuously.
Vanke, in 2023, continued the “Talent Training Plan of the Group”, prioritised professionalism and specialisation, implemented
a “3+1” training management system, and developed courses related to corporate culture development and professional skill
improvement.

Service capability training

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Professional capability training

In 2023, under the “3+1” training management system, the headquarters’ training focused on strengthening the “service
capability” pillar, combining online training and star certification mechanism based on the online mobile learning platform“V-LET'S SHARE Learning”, to better drive the learning development of operation and service employees and the acquisition ofcertification advancement.
In addition, focusing on “professionalism and specialisation”, we promoted the relevant training under the “3+1” training
management system.
In terms of “professionalism”, Vanke continues to strengthen the construction of corporate cultural values. During the reporting
period, Vanke Group conducted 17 special training sessions for all employees, including more than 680 core management
personnel, as well as frontline management personnel in the management departments of the headquarters, various BGs and
BUs. Through the “professionalism” training, Vanke empowered and supported the career and skill development of employees,
stressed mutual respect between people and encouraged employees to actively express their opinions in order to deepen
employees’ recognition of corporate values.
With regards to “specialisation”, Vanke carried out Special Training for Business Unit Partners, and Front-line Leadership
Training for BGs, BUs, and the headquarters. More diversified training forms were developed in 2023. The development andoperation headquarters led the construction of a batch of demonstration bases reflecting professional integration ability. Fromdimensions such as different project types (mainstream residential projects/large projects/integrated commercial offices) andproduct modules (facades/landscapes/fine decoration), Vanke constructed a batch of demonstration bases in line with theprinciple of professional integration. These represent the ideal states, such as correct product origin and high-cost effectivenessand serve as a significant platform integrating practice and training.

Distributed training system
Vanke Group’s distributed training system includes the Jiayi Academy in the Northern Region BG, the Sixing Academy in theSouthern Region BG, the Pujiang Academy in Shanghai BG, the Southwest Academy in the Southwest Region BG, the Onewo
Zed Academy for Onewo BG, and the IN-Academy for SCPG BU.

Front-line employees headhunting

Talent training infrastructure of the Group
Online + offline
training resources“Centralised and distributed”
training capacity building

Beijing Region
Training operations
Southwest
RegionVanke’s “3+1” training management system
In response to business expansion and scenarios, in 2023, we developed
diversified training forms, focusing on the enhancement of employees’ service andprofessionalism to adapt to the changing market environment and business needs,
and to help them strengthen the overall quality.

Southwest
Academy in
the Southwest
Region BG
In 2023, the Company developed or
updated a total training courses of

2,166, with an average training

duration among employees of

25.63
123

Jiayi Academy
in the Northern
Region BG

ShanghaiRegionPujiang Academyin Shanghai BG

Onewo Zed Academy
for Onewo BG
IN-Academy for
SCPG BU

Southern
RegionSixingAcademy

hours

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Employee training for all segments
Professionalism

Logistics
BU

Longterm rental
apartment
BU

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Employee involvement and communication
Specialisation

The “Voyage Programme” training camp

“VX Stars” and “VX Students” training programmes

Offline training was carried out on six topics:“Spreading Culture, Know Our Customers,
Master Operations, Understand Products, Grasp
Operations, and Lead the Team”, which helped
42 reserve park managers to quickly play theirroles, improve their abilities, and adapt to theenvironment.

The “PBL--points, badges, and leaderboards” gaming element was
introduced to employees’ development paths to stimulate them to“emulate, learn from, catch up with, help and in turn surpass eachother.” The training programme for management trainees was
designed by the “7-2-1 rule.” Specifically, 70% of the capabilities
required for management trainees are taught by senior employees.
Management trainees experience a six-month job rotation to enhancetheir business skills in practice. Meanwhile, 20% of the capabilities
required are developed in diversified ways of learning, such asattending regular business meetings, management interviews, andcross-park learning. Lastly, 10% of the capabilities required are
acquired through offline intensive training, line skills training, the“V-LET'S SHARE Learning” online mobile learning platform, andreading clubs. It was planned in 2023 to help 37 VX Stars and 111 VX
Students quickly integrate into new positions.

Professionalism training system for new employees

The training and certification camp for apartment managers

Online learning maps, offline intensive training,and on-the-job training mechanisms were
established. By leveraging the guidance ofa designated onboarding mentor, assist new
employees in achieving a professional integrationand growth transformation within one month,equipping them to meet the job’s core values andprofessional requirements, and adapting to thepace of business development.

A training and certification system for apartment managers wascreated based on such managers’ missions and core competence
requirements. The four procedures--90-day pre-job self-learning andself-testing, one-week offline intensive training, discussion and cocreation, and certification and examinations, facilitate apartment
managers to grasp core business skills and gain comprehensive
abilities to better serve society, customers, and tenants.

V-LET'S SHARE Learning: A mobile knowledge sharing platform
The Vanke “V-LET'S SHARE Learning Platform” Online Mobile Learning Platform has
provided rich and diverse learning resources for employees, precisely matched and pushedcourses, and enabled employees to improve their skills. In 2023, to meet the learningneeds of front-line employees based on scenarios, fragmented time, and mobile terminals,
operational and service business units such as the Long-term Rental Apartment BU and
Logistics BU utilised the V-LET'S SHARE Learning Platform. They segmented essential andfrequently used knowledge into digestible units, re-edited them, and uploaded them onto theplatform. This approach facilitated easy learning and skill review for employees, enabling
quick onboarding and skill advancement for front-line operators while unifying standards andoperational procedures.

100%

The number of courses uploaded
to the V-LET'S SHARE Learning
Platform exceeded

The Group disclosed the telephone numbers and emails of its executives to all employees by taking the opportunity of thelaunch of the WeCom account in 2023, to reinforce the building of communication channels for employees and help them
express and address their problems promptly. Meanwhile, we added “self-recommendation and peer recommendation”
to the nomination of the Group’s Striver Star and annual awards, based on the existing organisational recommendation,
to support employees to participate in the assessment and selection of award winners through flexible and diversified
channels of communication, recommend their role models, and express their opinions.
In order to better listen to the voices of front-line employees, Hotel and Resort BU performed its first employee
satisfaction survey in August 2023. The survey covered five dimensions: working environment and organisational
atmosphere, management level, incentives and benefits, training and development, and loyalty. These themes explore
the needs of employees and identify and solve their concerns. A total of 762 responses were received, with an overallsatisfaction score of 4.16 out of 5. Based on the survey results, each hotel lists the evaluation dimensions below theoverall averages as their key focus area and formulated specific follow-up improvement plans. In the second half of 2023,
we raised employee satisfaction in a pertinent manner by improving the management structure, reviewing and improving
the incentive mechanism, and optimising training and development strategies.
Vanke will continue optimising our communication strategy, strive to maintain employees’ sense of shared ownershipin the business, and stimulate their creativity and potential to contribute diverse insight and strength to the Company’s
development.

Employee care and well-being

The 2023 Employee training
coverage rate was

Vanke fully guarantees employees’ rights to know, participate, express and oversee. We offer diverse communication
methods, such as the “12 Communication Channels”, the “Forefront Voice” Programme and the Battlefield Report
Programme to actively listen to the voices of employees and create an open and transparent communication environment.

6,380

Vanke guides employees to pursue a better life in a healthy and sustainable way. We advocate the idea of “alternating workwith rest”, and pays attention to the physical and mental well-being of each employee from such aspects as material, mind, andculture. We carry out a variety of team building activities to enhance the cohesion and sense of belonging of employees andendeavour to build a positive and hardworking team.
We value diverse cultures and adopt a wide range of caring initiatives for our workforce. We provide parental leave, wheelchairramps, and work-from-home initiatives to significantly facilitate employees’ production and work and raise their sense of wellbeing. Moreover, we provide support programmes for employees with disabilities to deepen their sense of gain at Vanke.

Empower employees’ development
Vanke formulated the Vanke Business Partner Programme and specified that “People are our source of innovation and creativity.
We respect each employee’s personality, stimulate each employee’s creativity, and provide a stage for everyone to showcase
their talents in our enterprise”. The “Great Rivers and Seas” Talent Programme embodies Vanke’s respect for talent. Through thisprogramme, the Company aims to constantly cultivate young people generation by generation to shoulder great responsibility,
inject vitality into the organisation, and achieve “partnership inheritance”. A group-wide market-oriented talent flow mechanism
was created based on an online information platform to support employees to obtain more appropriate opportunities for practiceand growth from the Group’s business.
In 2023, Vanke further broadens the stage for employees to show their talents by adding “self-recommendation and peer
recommendation”, based on the existing organisational recommendation, to create a triple talent selection mechanism. Thismechanism not only stimulates the initiative of talent, but also integrates multiple resources to improve the selection efficiency,
allowing more talents to stand out and promoting the common growth and development of employees and Vanke.

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Strengthen body and mind
We set annual targets to promote the health and well-being of our employees, and link employee health directly to the
management’s bonuses. We provide free medical examinations for all contract employees and monitor the health of ouremployees by organising physical tests and collecting information on their physical fitness and health status (e.g. BMI).

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Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Ensure safe and soundWe regularly conduct physical tests to help employees understand their physical condition, promptly identify problems,
and take appropriate management measures. In response to the employee feedback, Vanke updated its annual physicalexamination programme across the Group this year and the option of physical examinations at hospitals were added based on
the institutional physical examinations to meet employee demand for the authority of physical examinations and increase their
participation in physical examinations.

Promote a healthy lifestyle
We keep enriching our health culture. In 2022, we formulated the Vanke
Association and Club Operation Measures based on the characteristics
of Vanke associations to further standardise the management of various
sports associations and clubs under Vanke. In 2023, we establishedthe “Vanke Frisbee Association”, in response to the enthusiasm of
our employees, on the basis of the 14 sports associations and clubs
in 2022. Concurrently, we publish a calendar of club activities on amonthly basis. We help employees maintain a healthy work-life balanceby encouraging them to participate in all kinds of sports through freegyms, fitness stations in office buildings, and health lectures. As ofthe end of 2023, the 15 clubs at Vanke’s headquarters conducted 608
activities with a total of 8,334 participants. The clubs participated in 16
competitions with 398 participants.

As of the end of 2023, the 15 clubs at

608
8,334
16
398

Vanke’s headquarters conductedactivities with a total of

Vanke purchases commercial insurance for all new employees, including medical insurance for critical illnesses and accident
insurance, and assists them in applying for medical insurance for their family members based on group discounts as well as
voluntary insurance. Meanwhile, Vanke offers flexible working options, paid leaves, such as extra holidays at the beginning ofeach school year, and support for employees’ celebrations and funeral ceremonies.
Vanke, in 2023, formulated or updated documents, such as the Off-site Work Support Plan for Vanke Group’s Employees andthe Work Manual of Vanke Group for Human Resources Operations, and further specified the scope of support for off-site
personnel. With respect to commercial insurance for employees, Vanke constantly optimises its commercial insurance scheme,
conducting differentiated management of commercial insurance by job post, and raising premium support and efficiency. Four
insurance packages, namely A, B, C, and D, were devised, focusing on accident and disease support tailored to the varied work
scenarios of employees. This approach allows organisations to procure insurance based on their employees’ specific business
contexts. Each package highlights the attributes of insurance protection against risks, specifying the type of insurance and theinsured amount. Additionally, measures to enhance insurance services for employees were clarified.
The Vanke Fraternal Society, established in 1998 and upholds the principle of “keeping an eye out for each other, all for one, one
for all, and enhancing Vanke employees’ capacities in resisting catastrophic incidents through teamwork”, provides consolationand material support for employees hit by misfortune. Since the establishment of Vanke Employees’ Mutual Aid Society, a totalof 679 members who have suffered major catastrophic events have received assistance from the society, with an aggregate
assistance amount of RMB46.933 million. In 2023, 181 members received assistance, with a total assistance amount of RMB9.2
million.

participants. The clubs participated incompetitions withparticipants

Since its establishment, the Vanke Fraternal Society has assisted
members in the face of major catastrophic events

181

679

Total donation amount of
RMB

46.93

millionTotal assistance amount ofmembers were assisted in 2023

RMB

9.2

millionVanke’s Partner Benefit System

Strengthen body and mind

Vanke Yoga Association
Vanke Frisbee Association

Vanke Fitness Association
Vanke Alpine Association × Vanke Imaging Association

127

Free physicalexamination
programme

Fitness stations
in officebuildings

employees)

Health lectures(covering all contract

Physical tests
Free
gymnasiums

Promote healthy lifestyle

Ensure safe and soundMonthly club activities

Social insurance

Subsidies

Holiday activities

Medicalinsurance for
critical illnesses

Holiday care

Run for Fun

Accident
insurance

The
Employee
Support
Programme

Commercial
insurance

1282023 Sustainability Report

About This Report Report Summary Message Board Statement About Vanke

Win-win Partnership

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Create a sustainable supply chain
Philosophy

SDG 17 - Partnerships for the Goals
Vanke incorporates the philosophy of sustainable development into supply chain management, and encourages all suppliers toabide by the following ESG practice guidelines. For more details, please refer to the Vanke Group Supplier Code of Conduct.

Strengthen the means of implementation and revitalise the Global
Partnership for Sustainable Development.

Vanke values its suppliers as integral partners, treating them with integrity while aiming to collaborate with all stakeholders toforge a sustainable supply chain. We have developed our internal policies for supply chain management, including the SupplierManagement Measures, the Sky-Net Action Management Measures, and the Sunshine Cooperation Agreement. By clarifying
the full lifecycle management process of supplier selection, evaluation and exit, we strive to effectively identify risks, and reduce
potential environmental, social and safety hazards, improve Vanke and our suppliers’ product quality and service capabilities.
Guided by the pioneering principles of consultation, joint contribution, and shared benefits, we actively explore opportunities withpartners through the VVUPUP E-commerce sharing platform. This platform gathers Vanke’s practice results in product R&D,
quality control, and supply chain management, as well as the advantageous resources of our partners. By complementing eachother’s strengths, we work with our partners to collectively elevate the competitiveness of the entire industry’s supply chain,
injecting new vigour into its development.

In 2023, Vanke had
qualified suppliers

20,659There were

8,939

suppliers

on the VVUPUP E-commerce
sharing platform

348

product categories

Compliancewith laws andregulations.

Comply with all mandatory laws and regulations where they operate.

Prohibition offorced labour

No forced labour in any form.

Prohibition ofchild labour

No official or temporary employment of worker under the legal working age shall be allowed.

Salary andworking hours

Suppliers shall sign employment contracts with all employees in accordance with local laws.
Employee remuneration paid by suppliers shall comply with laws and regulations on minimum
wages, processing time and statutory benefits.

Labour relations

Suppliers shall have appropriate communication mechanisms and appeal procedures for
employees to express their claims to the management.

Antidiscrimination

No employee should be discriminated based on their gender, age, marital status, sexual
orientation, nationality, race, religion or physical disability.

Anti-corruption
and bribery

Create a fair and healthy business environment, and do not tolerate any form of bribery,corruption and unfair competition.
Provide a safe and healthy working environment for all employees, encourage theestablishment of robust policies for health and safety, continuously identify, assess andcontrol risks that may jeopardise the safety and health of employees.

Occupational
health andsafetyProvide employees with specific work health and safety instructions, training and equipment
to reduce the risk of work-related accidents.
Establish procedures for the prevention, management, tracking and reporting of work-related
injuries and illnesses.
Identify and assess potential emergencies and develop contingency plans to coveremergencies including, but not limited to, fires and natural disasters.

EnvironmentallyfriendlyBusiness ethics

129

Advocate the philosophy of environmental protection and low carbon, and strive to reduce theimpact on the environment.
Uphold standards of integrity and good faith and prohibit any form of bribery, corruption,
extortion and embezzlement.
Eliminate unfair competition and comply with applicable anti-money laundering, counterterrorist financing, and sanctions laws and regulatory requirements.

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Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Management mechanism
Supplier code of conduct
To further clarify and uphold the philosophy of responsible supply chain management, this year, Vanke developed and released
the Vanke Group Supplier Code of Conduct. This document outlines Vanke’s minimum standards and initiatives for suppliers
regarding their compliance with laws and regulations, labour rights, occupational health and safety, and business ethics. This
code applies suppliers, contractors, and subcontractors of Vanke and its subsidiaries. We encourage suppliers to establish theirown ESG codes of conduct (covering business ethics management) and request them to adopt and implement relevant policies
and procedures.

Supplier management procedures
Vanke adheres to the Supplier Management Measures as basic regulations for the sustainable supply chain management. Under
the premise of fully protecting suppliers’ interests, we establish requirements for suppliers regarding compliance, environmental
protection, and necessary quality management throughout the entire supplier screening, admittance, and assessment process.

Suppliers are required to hold environmental
impact assessment documents, government
approval documents and acceptance opinions,pollutant discharge permits, and environmental
management system certification. It is
important to comprehend how suppliers handle
pollution after it occurs and check that pollutant
monitoring sites at their operating premises
function normally. The safety performance of
suppliers/contractors should be included aspart of the screening evaluation, and obtaining
the ISO 45001 Occupational Health and Safety
Management System certification is consideredan optional factor.

Suppliers failing to meet Vanke’s standards
in terms of quality, technical capabilities,
progress, and safety may face suspension or
termination of cooperation.

Complete Lifecycle ofSupplier Management

Supplier
screening

Supplier
admittance

Suppliers should pass a comprehensive
review that covers multiple ports anddimensions, including the qualification
review, inspection, evaluation, and randommaterial inspection.

(Direct Suppliers)

Tier 2 Suppliers(Indirect Suppliers)

Tier 3 Suppliers(Raw Material
Suppliers)

131

81.2% 69.3% 54.3%
,

, and

, respectively

In 2023, Vanke modified the programme for supplier certification
procedures to improve the efficiency of matching projects with suppliers,
foster a business environment renowned for fair competition, and enhance
the quality of products and services. We use the supplier system to output
the suppliers' basic information, business capabilities, and internal andexternal performance evaluation in three dimensions and form the supplierbase list, and label the suppliers. Before initiating the procurement process,a thorough analysis and categorisation of procurement requirements
were undertaken, generating project-specific requirement labels basedon product types, standards, specific techniques, and special techniques.
This enabled the identification of critical procurement categories that
affect project requirements, leading to the formulation of the Procurement
Shortlisting Criteria based on the procurement sub-category. By matchingthese criteria and supplier tags through the system, we ensured optimalalignment of qualified resources, facilitating more effective project-supplierresource matching.

Supplier certification management procedure
Supplier
exit

Supplier
assessment

We conduct regular reassessments ofthe matters required during the supplier
screening phase. This includes reviewing
compliance documents, certification status,
approaches to pollution treatment, andpollutant monitoring sites.

We manage suppliers by categorising them into different tiers based on the types of materials they provide, so as to further
reinforce Vanke’s management capacity of product quality and safety.

Tier 1 Suppliers

The proportion of suppliers certified in quality, environmental, andoccupational health and safety management systems stands at

To ensure project quality, we require suppliers (contractors) that directly provide products andservices for us to undergo self-assessment. We organise internal and professional third-party
audits to thoroughly review their management procedures and project quality, ensuring they
comply with essential national qualification requirements.
During the admittance process for direct suppliers, we require them to submit a secondary
supply chain resource library (list of subcontractors). Additionally, we require direct suppliers
to conduct on-site inspections of key indirect suppliers and verify the completion of audit
work. We organise internal and professional third-party audits to comprehensively audit their
management procedures and project quality.
We conduct regular random inspections of raw materials to ensure their quality meets
standards and requirements.

Supplier Information

Supplier Label - Match - Procurement Shortlisting Criteria

Procurement Project
Requirements

Basic information
De facto controller
Equity structure
Categories ofprocurement
requirements

Assets & liabilities
Business capabilities
Specific construction
techniques
Special/high-standard
processes
Performance evaluation

Supplier
profileMatch

Product types
Procurement
ShortlistingCriteria

Product standards
Specific techniques
Special techniques
Critical procurement
categories

Quality
Progress adherence
Safety production
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Green supply chain ESG program
We have engaged in the Green Supply Chain Action initiated by China’s real estate sector and advanced a range of green
supply chain ESG initiatives through AUPUP to continually improve the influence of Vanke’s green value chain. During theReporting Period, we successfully met all green supply chain targets, working closely with our partners to stride onwards on thejourney of sustainability.
We implement green supply chain ESG initiatives under the supervision of the Group’s Board of Directors every year.
Additionally, we have implemented a range of green controls for suppliers to ensure the green development of our value chain.

Supplier ESG
admission
criteria

Environmental
compliancescreening

We adhere to the principle of procuring raw materials with minimal environmental footprints. During
the Reporting Period, Vanke mandated that all suppliers provide materials sourced 100% from Green
Supply Chain Action whitelisted suppliers, that 100% of the purchased aluminium alloy profiles use achrome-free passivation process, and that 100% of the purchased wood is sourced. All these goals
were 100% achieved during the Reporting Period. In 2023, we integrated biodiversity considerations
into our procurement procedures and avoided biodiversity damage and natural environment
degradation.
During the Reporting Period, Vanke ensured that all suppliers underwent thorough due diligence,achieving a 100% coverage rate, and we commit to continuing to meet this target in the future. To
address environmental concerns, we set up a professional team that collaborates with the Institute of
Public and Environmental Affairs (“IPE”). During the Reporting Period, we conducted environmental
compliance screening on core suppliers to reduce supply chain risks and strengthen suppliers’
awareness of environmental compliance management. Additionally, we participated in the IPE’s CITI
index evaluation to enhance our own green supply chain management capabilities. In the future, we
intend to conduct quarterly reviews of suppliers identified with environmental compliance risks. For
those facing significant ESG risks, we will require them to publicly disclose the causes of these risks
and their remediation progress on the IPE website. In the event that suppliers fail to remedy issues ontime and exhibit serious violations, Vanke will terminate its cooperation with them.

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Supplier emergency response:

In case of quality concerns with suppliers, Vanke has established a robust emergency response system.
·S pecial management and suspension of cooperation: For product quality issues arising during collaboration, such as paintseepage or unsatisfactory tiling as a result of residual release agents on the back of tiles, we have established corresponding
emergency response teams and would immediately suspend cooperation with suppliers identified with quality issues.
·S pecial quality inspections by full-time inspectors: We have worked with Sky Net to test non-conforming products, assigned
professional technicians to review the production process at the shipping factory, and taken emergency management
measures such as temporary product usage, returns, dismantling, and reconstruction for products in the same batch as thosewith quality problems.
·C losed-loop management: We have analysed the causes of products’ quality problems, adjusted business plans, required
suppliers involved to conduct self-inspections and self-corrections regarding the issues that arose, and undertaken to extend
warranty periods.

Protecting the rights and interests of contractors’ workers
To urge the protection of the legitimate rights and interests of contractors’ workers, Vanke has entered into the Letter ofCommitment to Timely Payment of Workers’ Wages with contractors, delineating the mechanisms for the prompt payment ofwages to contractors’ workers. The contract requires that Party B open a dedicated account for the wages of migrant workers,
which shall be used exclusively for the payment of migrant workers’ wages for the project. Party B (including Party B and its
subcontractors) are prohibited from delaying or deferring payment of migrant workers’ wages. Vanke has the right to randomly
check the payment of migrant workers’ wages. In the event of a breach, Party B shall provide full compensation, and Party A has
the right to terminate the contract and revoke Party B’s qualifications for future projects of Party A.

“Green List” Online Application Platform
In 2020, we launched a “green list” online application platform to include supply chain enterprises with outstanding
performance in energy conservation and emission reduction in the “green list” and make priority purchases from them.
In 2023, there were already 87 “green list” enterprises, representing a year-on-year increase of 65.

Supplier
capacitybuilding
supportprogramme

We organise special events and “Super Factory” activities through AUPUP, thus providing a platform
for technical exchange and training to suppliers. During the Reporting Period, we conducted monthly“Super Factory” activities through AUPUP, visiting suppliers’ factories in depth to understandproduction processes and engage in face-to-face discussions with suppliers. This year, we completed
multiple “Super Factory” activities with suppliers such as Opple, Tutti, Hopewell, Huajian, Xingsanxing,
Viessmann, Jomoo, Sinostone, and Tianpu, aiming to enhance suppliers’ delivery capabilities.

Special Events under the Supplier Support Programme
In May 2023, AUPUP, in collaboration with the China National Building Waterproof Association and the Shenzhen
Waterproof Association, hosted the Advocacy Conference for the New Policy of the General Code for Waterproofing
of Building and Municipal Engineering at the Zero-Carbon Conference Hall of the Housing and Construction Bureau ofShenzhen Municipality. This event brought together government authorities, industry associations, waterproof companies,
purchasers, EPC contractors, and design institutes to promote the standardised production of waterproof products andsupport green development.
We offer a capacity building support programme for suppliers seeking building material certification. Based on our needs foraluminium alloy profiles featuring chromium-free passivation treatment, we, in batches, have assisted suppliers with theircertification applications. During the Reporting Period, we completed the supervision of the initial nine suppliers participating in
the building material certification programme and aided three suppliers in their applications for building material certification.

133

Risk management
Periodic comprehensive risk evaluations
For all registered suppliers, Vanke evaluates their whole-cycle business performanceon a periodic basis. Through comprehensive evaluations of multi-dimensional
indicators of suppliers, such as online intelligent site evaluation performance, thirdparty unannounced inspection evaluation performance, Skynet Action material
inspection qualification rate and after-sale repair rate, we make sure that suppliers’
business status, safety and quality, and environmental and social risks are underquantifiable, comparable, traceable and effective management.
Based on risk evaluation results, we identify high-risk suppliers, and interview those ofhigh-risk key resources and review the quarterly assessment and improvement plansubmitted by them to lower and manage their risks.

The number of suppliers
included in the high-risk suppliermanagement scope due to noncompliance with environmental,social, and other requirements is

0

Exit management
We have developed a supplier exit mechanism. Suppliers’ safety incidents, subpar work, inferior material use, fraudulent
activities, concrete risks, and other contract breaching behaviours are reviewed regularly. These negative acts result in varying
degrees of punishment, such as the yellow card, red card, or blacklisting. If necessary, the supplier may be suspended or
terminated, and we may strictly pursue relevant responsibilities against the units and individuals involved.

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Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Green procurement
AUPUP in collaboration with IPE, aims to enhance suppliers' awareness of environmental compliance management and reduce
the overall environmental protection risks in the supply chain. In 2023, AUPUP conducted environmental compliance screenings
for 420 key suppliers, identifying 170 suppliers with room for improvement. By the end of the reporting period, 37 suppliers hadcompleted their rectifications, and 133 are scheduled to complete rectifications within 2024.
Commissioned by Vanke, AUPUP will carry out regular quarterly environmental compliance reviews for suppliers in the future.
Suppliers with identified issues are required to disclose the causes and rectification status on the IPE website and are mandated
to make timely corrections to ensure environmental compliance.

Sunshine procurement
In 2023, to strictly regulate project procurement activities and uphold compliance anddisciplinary bottom lines, we formulated the Vanke Group Supervision and Management
Rules on Development and Operation Business Project Procurement (referred to as the“Procurement Supervision and Management Rules”). This document clarifies the red lines
and bottom lines that must be followed throughout the procurement process, covering
key business compliance control points in six business scenarios, including cooperative
resource management, bidding groundwork, procurement programmes, bid invitation,
opening, evaluation and determination, as well as contract signing and performance.
The Procurement Supervision and Management Rules further elucidates the procurement
supervision and management mechanism, including both external supplier supervisionand internal audits. The Sunshine Cooperation Agreement explicitly outlines the
responsibility of suppliers for supervising the honest duty performance of Vanke’s
procurement personnel and specifies public and specific departments that accept reports
and complaints regarding honest performance and their respective contact information.

Prohibit commercial bribery, bribery
involving suppliers, conflicts of interest,bid rigging, capital exchanges, andcash giving or asking.

Content of
the Sunshine
Cooperation
Agreement

The internal audit supervision of procurement is led by the supervisory department of the Group’s Headquarters of Development
and Operation. The management measures include:

On-site supervision

Special audit

Reporting and investigation

Supervise on-site suppliers’
inspections and bid-opening
processes, attend important
procurement review meetings, andsupervise the entire processesof procurement assessments
and implementation procedures,with a focus on supervising theapproval of procurement plans andbid evaluation and determination
procedures.

Organise irregular special
procurement audits annually toreview procedural complianceand contract execution for key
procurement projects.

Thoroughly investigate
procurement violations andmisconduct based on the reported
clues, with a focus on addressing
prominent issues and driving
targeted remediation.

In 2023,100%of our suppliers(including contractors) signed
the Sunshine Cooperation
Agreement.

Specify that all suppliers and affiliates should
comply with the requirements of incorruptibility
and self-discipline, and makes clear regulations
on all kinds of indirect acts of soliciting, offeringand accepting bribes in business activities.

A total of

12

special procurement

audits were conducted, covering

87%

A total of122

suppliers underwent

anti-corruption due diligence.

9

special remediation actions

were carried out, with aof this year’s procurement

remediation rate.

projects.

100%

Vanke continues to promote its digital supervisory tools for clean procurement. Through our anti-fraud tool, Eagle Eye, wemonitor anomalies in indicators such as the IP address of the bidding, successful bidding rates, and dispersion to provide
technical support for the management of project bidding and procurement and supplier profiling. This year, the Eagle Eye system
was equipped with a new alert analysis module for price deviation. It automatically triggers reassessment procedures for bidding
projects with overly large price dispersions to uphold fair competition.

Communication and training
Vanke is dedicated to improving the overall operational performance of its supply chain to safeguard the safety and quality of
its products. We communicate effectively with suppliers through various channels, perform regular training, provide targetedtraining courses regarding product quality and safety, and help to bolster suppliers’ capabilities.

In 2023, we held

15

quality-related training sessions, across more than

1,000

enterprises. These sessions were tailoredfor personnel responsible for green manufacturing, quality improvement, and certification for enterprises that use special andsophisticated technologies to produce novel and unique products. Additionally, we hosted the inaugural E-Tiling Competition to
standardise the tiling methods and requirements for sintered stone, attracting over

135

100,000

participants both offline and online.

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Advancement of the management of the industrial supply chain
Through AUPUP, Vanke creates a new ecosystem of the upstream industry chain to promote the transformation of the industrial
supply chain, advance product standardisation, realise the industry’s ecological upgrade, and expand the industry’s influence.
We have established the AUPUP Certification Alliance (“ACA”), aiming to unify industry consensus on green carbon reduction,
promote the green transformation of the industrial chain, and support certification and evaluation businesses such as factory
certification, factory three system certification, building evaluation, and calculation of the carbon emission of buildings. To date,
we have issued green carbon certificates for more than 500 products produced by 120 companies.
Drawing upon Vanke’s over 35 years of experience in quality control and supply chain management, AUPUP integrates dataand industry to promote a new model featuring high transparency, flatness, efficiency and greenness regarding bulk commodity
trading, realising upstream and downstream information sharing and complementary resources. Through visual means, we
integrate the bidding robot, “Sky Net system, Sky Eye system and Sky Road system”, and other core technology services toprovide online visual support for bidding progress, product testing, and logistics supervision. This will bring more convenience tosuppliers and procurers and ensure the smooth performance of obligations by all stakeholders.
In 2023, AUPUP continued to refine its management and service capabilities for Sky Net using technology. Through big data
analysis, AUPUP developed risk control programmes for Sky Net Action. Additionally, it provided a reference for customers
to select high-quality products through the quality map for materials supplied by Party B and upgraded and iterated the Sky
Net system to improve the operational efficiency and accuracy of Sky Net Action. The annual updates on the Sky Net system
primarily include:

Wider upstream coverage

Wider customer coverage

Critical raw materials such as panels for woodwork,
including cabinets, were incorporated into Sky Net’s
detection scope to ensure that the quality of materials
that would enter downstream processes meets
standards.

In-depth exchanges with regions such as Southwest
and Southern China were carried out. Furthermore,combined with Sky Net’s data analysis, quality
improvement suggestions were provided for products
such as railings.

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Establishment Ceremony of “AUPUP International Building Materials Alliance”

In August 2023, the Launch Ceremony of International Business of AUPUP & Establishment Ceremony of theInternational Building Materials Alliance with the theme of “Charting the Course with AUPUP, Driving the International
Expansion of Building Materials” took place at the Hong Kong Convention and Exhibition Centre. Over 100 delegates
attended the event. These individuals mainly represented government agencies, international investment firms,
procurement partners, and senior executives of building materials partners of the AUPUP Champion Ecosystem from
more than ten countries and regions, including the UK, Singapore, New Zealand, Cambodia, and the USA.
Building on its impressive resources and service expertise in the domestic building materials supply chain, AUPUP has
swiftly embarked on an international expansion since 2021. This endeavour encompasses the consolidation and exportof resources across the building materials supply chains and the fostering of partnerships with overseas customers.
Incorporated in 2022, AUPUP International Limited has partnered with real estate developers, construction companies,
interior designers, and supply chain firms in key markets such as North America, Australia, Southeast Asia, and the
Middle East. Actively, it has been accumulating top-notch project resources to provide its platform partners with new
growth drivers.
During the event, AUPUP announced the inception of the “AUPUP International Building Materials Alliance.” This
strategic move was aimed at steering Chinese building materials firms away from traditional “standalone” operations. By
harnessing synergies and scale advantages, the alliance is poised to offer a spectrum of services, including international
logistics, design, certification, legal services, and financial support, to Chinese building materials enterprises. The
objective is to provide comprehensive backing for industry players venturing into international markets.
In the future, AUPUP will remain committed to capitalising on its collaborative edge to deliver superior-quality, costeffective building materials to international customers. This proactive approach will bolster the presence of Chinese
high-quality building materials enterprises in global markets while collectively advancing the development of the
global construction and building materials industry chain. Additionally, AUPUP intends to delve into strategies for theinternational expansion of Chinese building materials, thereby contributing to the establishment of a global champion
ecosystem.

AUPUP regularly conducts diverse promotional andtraining sessions, providing purchasers and suppliers with
opportunities for professional technical exchanges andtraining. This aims to help them better understand industry
trends and solutions. AUPUP hosts “Super Factory” activities
annually, allowing customers to gain deeper insights into
industry leaders’ high-performing factories, thus fosteringcloser cooperation between customers and platform partners.
Through various promotional activities, AUPUP actively
shares profound insights into the industry and problemsolving strategies. It also introduces new business models
and opportunities to platform partners, thereby facilitating
collaborative development across the industry chain.

Group photo of the attendees

137

138

2023 Sustainability Report

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Shared Development

Enhancing Rural Waste Management Capacity

SDG 3 - Good Health and Well-being
Ensure healthy lives and promote well-being for all at all ages.

SDG 11 - Sustainable Cities and Communities
Make cities and human settlements inclusive, safe, resilient and sustainable.

SDG 17 - Partnerships for the Goals
Strengthen the means of implementation and revitalise the Global Partnership for Sustainable Development.

Vanke is committed to driving development through diversified strategies and continuous innovation, with the aim of meeting thegrowing aspirations for a better life and striving to become a “lifestyle creator”.

Rural revitalisation
Vanke has actively engaged in rural ecological revitalisation, leveraging its strengths to actively promote green farming andinject new vitality into rural areas. Vanke aspires to be a “creator of beautiful rural life”, working to beautify rural landscapes,
enhance ecological awareness among rural residents, and paint a new picture of liveable, prosperous, and beautiful rural areas
through practical actions.

Infrastructure upgrading
Creating Rural Green Ecological Landmarks
Since 2021, Vanke has been backing rural revitalisation efforts in minority
regions within the province. We kicked off the demonstration belt project forrural revitalisation across multiple towns in Ruyuan Yao Autonomous County,
Shaoguan City. The project’s specifics include “one greenway, one Yao village,
and six major thematic demonstration areas”, aiming to establish a model belt
for rural revitalisation in minority areas.
The planning and design respond to Ruyuan’s nickname “Colourful Yao
Village” with the strategy of the “Colourful Greenway”. According to the layoutof the stations, the greenway is divided into five sections, with each section
reflecting the “earth colours” extracted from the surrounding cultural andnatural features of the area. These include the “Zen Orange” near Yunmen
Mountain, the “Autumn Harvest Yellow” of the wild rice fields, the “Grass GreyGreen” of the mountains, the “Adobe Yellow” of village settlements, and the“Wujiang Blue” of the flowing river waters.
The project focuses on county-level revitalisation assistance, centred aroundthe 27-kilometre-long Rugui Highway spanning across Ruyuan County. It
establishes a greenway connecting the towns of Rucheng, Yiliu, Youxi, andGuitou, providing convenient transportation for local villagers. Additionally, fivestations - Yaxiping, Yiliu, Yaokegongsheng, Shuangqiao, and Guitou – are set
up along the route, linking multiple scenic spots in the vicinity and contributing
to the creation of a rural green ecological environment.

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Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Vanke’s sustainable waste management project in Jiulong
Town, Mianzhu City, Sichuan Province, has progressed
through three phases, yielding significant results. We haveestablished a model school, a demonstration community,
and a demonstration village. Residents have adopted
habits of regular and classified disposal of food waste. The
aerobic composting centre at the transfer station utilises
approximately 150 kilograms of food waste daily, producing
organic fertilisers for residents’ use in farming.
In 2023, with the support of Jiulong Town government, theproject expanded its demonstration area by adding five newvillage communities. Additionally, the upgrade of the Jiulong
Town transfer station project was completed this year. It
has been transformed into a comprehensive environmental
education centre, beyond its previous functions ofhousehold waste compression, food waste composting,and hazardous waste storage. Now, it serves as a hub for
waste classification education, policy advocacy, ecologicalplanting demonstrations, and tourism. This year, throughthe environmental education centre, we conductedvolunteer and environmental education activities for local
youth and community residents, enhancing local residents’awareness of green ecology. This lays the foundation forachieving sustainable waste management throughout
Jiulong Town, promoting the construction of a zero-waste
town, and actively contributing to rural green revitalisation
efforts.

Transformed transfer station

Activities at the environmental education centre

Education revitalisation
Supporting the Improvement of Educational Quality in Yongshun County
Establish cultural public facilities
at the town and street level

Support the construction of
the teaching building of Guitou
Primary School“Vanke Green and Shine (“G&S”) Rural Education Support” was launched in 2016, which aims to focus on and support
the professional capacity development, physical and mental health and career awareness of rural teacher groups andto promote rural education by combining teaching facility donation and related teaching activities. In 2021, Vanke, incollaboration with G&S, launched the Rural Education Project in Yongshun County, Hunan Province, which includes
initiatives such as the G&S Mini Library, G&S Science Class, and G&S Rural Teachers Support.
In 2023, in the realm of scientific education, we provided toolkits to 28 schools with student populations exceeding 200,
enhancing the local hardware infrastructure for science education. In terms of reading education, the project facilitated
72 teachers from newly established G&S Mini Libraries to participate in study visits to Nanjing, broadening theirhorizons. During the summer holidays, we supported the organisation of Reading Week summer camps in five schools,
where 63 university students engaged in various reading activities with the children, involving a total of 321 teachers andstudents. Furthermore, the project continued to boost care for teachers by providing support for the children of seven
frontline rural teachers to realise their “university dreams”. To enhance teachers’ capabilities, the project conducted fivesessions of online reading theme sharing, nine sessions of science theme sharing, and one session of Xinhuo Salon,
with a cumulative participation of 19,678 teachers.

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Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Knowledge empowerment

Advancing the Development of School Education

In 2008, Vanke initiated the construction of Zundao School in Mianzhu, Sichuan, marking the beginning of yearsof educational support that have endured to this day. Through initiatives such as teacher and student incentive
programmes, the establishment of an Education Development Committee, and the mobilisation of professional
philanthropic resources and volunteers, we have effectively enhanced the overall educational performance of theschool. In 2022, the school transitioned from a nine-year system to a full six-year primary school. With the long-termgoal of creating a “Chinese model rural school”, Vanke began to focus on supporting the implementation of a holistic
education approach known as “five education initiatives”. In terms of management, we introduced OKR tools throughexpert volunteers to highlight key indicators aligned with long-term objectives, thereby fully engaging the management
team and teaching staff. In terms of support, in 2023, we continued to utilise high-quality professional resources from
Vanke Foundation, Green and Shine Foundation, and others to promote sports activities such as football and skipping,as well as art classes including pottery, painting, and paper cutting. We also continued to recruit volunteers within theGroup and addressed students’ psychological issues through one-on-one communication.
Over 15 years of persistent effort, Zundao School has made significant strides
in all aspects. In 2023, Zundao achieved the remarkable feat of ranking
first in the Mianzhu area (including urban primary schools) in the juniorhigh school entrance examination, a commendable achievement for a ruralschool. Moreover, the school’s educational achievements have been widely
recognised, receiving accolades such as being designated a national pilot
school for intellectual property education, a national model school for sports
teaching reform, and winning the first prize in the Mianzhu City education
supervision and assessment for eight consecutive years.
In January 2024, Zundao School was designated by the Ministry of Education
as a “National Experimental School for Compulsory Education Teaching
Reform”. Zundao has become a warm rural school where teachers arerespected and students aspire to be.

National
experimental schoolfor compulsory
education teachingreformPromoting Rural Waste Classification Education

Since November 2020, Vanke Foundation has been supporting the Zero Waste Village. Leveraging their accumulated
experience in county-level, township-level, and village-level waste classification practices over the past three years, they
have transformed this experience into knowledge output, establishing a rural waste classification system.
In Dongyang Township, Guangfeng District, Shangrao City, Jiangxi Province, we have conducted rural waste classification
education under the zero-waste village programme. This year, the Rural Waste Classification Textbook was published,covering waste classification practices involving district and county governments, township governments, village
committees, households, sanitation companies, and schools, as well as special topics such as On-Site Treatment of Food
Waste and Rural Aerobic Composting Practice and Management.
By improving the supporting curriculum knowledge system and conducting curriculum training practices, we continuously
enhance the management and implementation system of waste classification work at the county, township, and village
levels. This supports managers and implementers in conducting tailored waste classification practices in their respective
areas, establishing a normalised waste classification management system, and promoting the widespread adoption ofwaste classification practices, contributing to sustainable governance for rural green development.

Empowering urban renewal
In response to the trend of urban renewal and the demand for renovation in older communities, we actively integrate into
community governance, continually enhancing the level and quality of property management services. We optimise community
infrastructure and residential functionality to provide customers with a higher quality living environment. In response to thechallenges of property renewal, Vanke Service has established an “Anti-Ageing” task force, seeking diverse co-building models
to address key issues in “ageing” projects, such as fire safety, building structures, electrical and plumbing systems, andelevators. We have conducted a thorough review of age data for buildings under management and performed comprehensive“check-ups” on those with older structures. Based on this, we have developed a set of property renewal action plans. Taking into
account the practical circumstances, we provide “age-appropriate” renovation services for older buildings.

Transformation of the “Colourful Asphalt Glow-in-the-Dark Running Track” at Guangzhou Panyu Opal
Project
In 2023, in preparation for the 10th anniversary celebration of the Opal project, we prioritised various renovations andrefurbishments, including the installation of air conditioning in elevators, renovation of elevator hall ceilings, refurbishmentof the rain shelter at the west gate car park, and the transformation of the road surface running track. These efforts aimed
to provide the community residents with a comprehensive and enhanced living experience.
The Colourful Asphalt Glow-in-the-Dark Running Track emerged as a focal point in the “Beautiful Community Plan” forrenovation. Previously, the track had been subject to numerous complaints due to issues with the road base and frequentwaterlogging during rainy days. To address this, Vanke Property established a dedicated task force. Following theChildren learning ocarina, recorder, andpainting under the guidance of artists

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Zundao School education support activities

transformation, the new glow-in-the-dark track
successfully resolved issues such as sinking andwaterlogging. The original grass brick surface
was replaced with asphalt at the base andpainted over, while fluorescent stones were usedas decorative elements on the sides of the track.
The overall visual effect has been significantly
improved, rejuvenating the appearance of thecommunity and offering residents a healthierand more fulfilling lifestyle experience.

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About This Report Report Summary Message Board Statement About Vanke

Creating a happy and harmonious community
We are committed advocates for creating warm and welcoming communities, placing great importance on community culturaldevelopment. Through diverse community activities, exploring new models of street-level community mutual assistance, andenhancing public service facilities, we aim to enrich residents’ lives, strengthen neighbourly relations, and foster a warm andreciprocal humanistic community.

“Long Time No See, Neighbour” - Please Day Returns Offline After Three Years“Please Day” is a large-scale community charity event jointly organised by Vanke Service Community and Rui Alliance
Community. It aims to foster genuine and friendly neighbourly relations and promote civilised and harmonious community
living. We designate the last Sunday of September each year as “Please Day”.
In September 2023, the 21st “Rui Alliance Community Please Day”, themed “Long Time No See, Neighbour”, returned
offline for the first time in three years, encouraging neighbours to step onto the streets and break down the “walls” between
neighbourhoods, fostering warmer neighbourly relations. The event, featuring offline garden parties, communal feasts,
and an online “Community Talent Show”, provided neighbours with platforms to showcase their talents and engage indiverse community activities. It aimed to involve both residential property owners and residents from neighbouring streets,
enhancing friendly relations through activity performances and interactive games, and boosting confidence in building abetter life together.
This “Please Day” event covered over 2,500 communities in more than 120 cities nationwide, attracting over five million
households to connect with each other through both online viewing and offline participation. It set records for the highest
number of offline participants, online viewership, and event outreach in history.

143

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Fitness-for-all program
Celebrating the 10th anniversary of Run for Fun: Back to basics and setting off again
In 2013, Vanke initiated and hosted the Urban Run for Fun, which, after years of development, has seen over 470 events held in
371 cities worldwide, drawing nearly 5.71 million participants. It has gradually developed the Run for Fun into a series including
Urban Run for Fun, the Community Run for Fun, the University Run for Fun, and the runner-cantered full marathon.
Under the guidance of General Administration of Sport of China, the Run for Fun series has become one of the national fitness
IPs with significant participation, influence, and comprehensive coverage, motivating more people to join the fitness-for-all
program.

The 2023 National Fitness Online Sports Event - Vanke National Urban Run for Fun

As the only national running event of
the 2023 National Fitness Online Sports
Event, the Vanke National Urban Run
for Fun is jointly organised by Vanke,
the Department of Mass Sports of theGeneral Administration of Sport ofChina, and the Mass Department of the
All China Sports Federation. To promote
public participation in health initiatives,
the event has garnered support from 36
national team athletes and well-known
figures like Xu Mengtao, Ma Long, Quan
Hongchan, Wu Dajing, and Shen Teng.

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2023 Sustainability Report

About This Report Report Summary Message Board Statement About Vanke

Investor education

On the occasion of the tenth anniversary of Run for Fun, we organised Urban Run for
Funs in 11 cities nationwide, encouraging more people to get outdoors, promoting asunny and healthy work-life balance, and discovering the beauty of our cities.
2023 Vanke National Urban Run
for FunJoined by 100 national teamathletes,

238,000

runners took to the streets

Guangzhou · Shabu Ancient
Village Urban Run for Fun

Shenzhen · Urban Run for Fun Shenzhen
Central Park x Bijiashan Sports Park
Urban Run for Fun spanned
across11

cities: Hangzhou,

Shanghai, Shenyang, Wuhan,
Beijing, Xi’an, Chengdu, Nanjing,
Chongqing, Shenzhen, andGuangzhou
Covering
Nanjing · Urban Run for Fun Hexi Binjiang
Greenway2024 Vanke New Year Marathon

Celebrating its tenth anniversary,
the New Year Marathon adopts
the theme “Run for Fun into the
New Year”. Through online cloud
marathons, it continues to establish
a premium event IP reputation, withcoverage extending to 371 cities
nationwide. It attracted 458,000
participants, accumulating a total
distance of 8.833 million kilometres,
ushering in 2024 in a sunlit andhealthy manner.

145

Chengdu · Urban Run for Fun
Xinglonghu Wetland Park

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

1,064

Certificate of 2023 Outstanding Investor
Education Base in the Shenzhen Area

Vanke Investor Education Base’s Financial Lecture Series Recently Hosted an Event Titled “Unlocking
the Charm of ETFs”

enterprises

and institutions

Total participation reached

22,000Since its establishment in 2015, Vanke Investor Education Basehas remained committed to the core principle of “meeting investor
needs”, striving to provide robust support to a wide range of small
and medium investors. This year, the Vanke Investor Education Baseorganised investor education and outreach activities around themes
such as the fifth “515 National Investor Protection Publicity Day” andthe “World Investor Week 2023”. Online efforts primarily focused on
disseminating basic knowledge through informative graphics, videos,cartoons, and other educational materials, while offline activities
included hosting investor education seminars to offer professional
insights and knowledge sharing. Vanke Investor Education Base has
intensified interaction with investors in the area of investor protection,aiding investors in gaining a correct understanding of market risks,enhancing risk prevention awareness, steering clear of irrational
investment behaviours, and providing meticulous investor education
services. In 2023, Vanke Investor Education Base was honoured
with the “2023 Outstanding Investor Education Base in the Shenzhen
Area” award by the Shenzhen Securities Investor Service Centre.

individuals

In response to the “World Investor Week 2023” initiative,
we have actively engaged in educational activities centredaround the themes of “value investing” and “sustainablefinance”. The aim is to enhance investor awareness of risks
and promote prudent investment practices by providing
professional analysis and interpretations of key events inthe capital markets.
The activities have been structured around the philosophyof “how to understand financial knowledge”. Speakers
have progressively delved into the changes in China’s
macroeconomic landscape since the advent of economic
reforms, thereby enabling investors to grasp how recent
market policies fit into the broader macroeconomic
picture. Moreover, attendees have been introduced
to the philosophy of index funds and ETFs within thismacroeconomic context, with an emphasis on advocating
for rational investment practices. Attendees haveenthusiastically participated in interactive sessions andactively engaged in discussions on current market trends.
This open exchange of ideas has earned the event praisefrom investors.

Vanke Investor Education Base’s Financial Lecture Series

1462023 Sustainability Report

About This Report Report Summary Message Board Statement About Vanke

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Strategy

Climate-related Risk and Opportunity
SDG 13 - Climate Action
Take urgent action to combat climate change and its impacts.

Governance
We have established an ESG management structure with the Board as the highest decision-making level. The Board is
responsible for determining the Company’s ESG management structure and management strategy to ensure the establishmentof appropriate and effective ESG risk management and internal monitoring systems. The Board has integrated climate changerelated risks and opportunities into its ESG management.

Organisation

Role

Composition

Responsibilities
1) Decide the climate change management framework and management strategy of
the Company;

Board ofDirectors

Decisionmaking Body

Members of theBoard2) Ensure that Vanke establishes appropriate and effective climate change-related
risk management and internal monitoring systems;3) Listen to the results of discussions on important climate change issues andmonitor the progress of climate change-related goals;
4) Review and approve the TCFD annual report of the Company.

ESG
Working
Committee

Management
Body

The Chairman of theBoard is the director,
and the secretaryof the Board acts
as the deputy
director. Other
members include theresponsible personsof relevant functions,
BGs and BUs.

In 2022, the Intergovernmental Panel on Climate Change (“IPCC”) of the United Nations released its sixth assessment reportcovering the assessment of the impacts of climate change. The report highlights that global warming of 1.5 ⁰C could occur assoon as 2030 if there are no strong mitigation measures. We acknowledge that climate change may pose multiple risks to ourbusiness and lead to climate transition risks with potential financial impacts. On the other hand, climate change will also create
opportunities and inspire us to innovate and make new attempts in business. It helps the Company transform into a low-carbon
economic development model and maintain a leading position in the market. Under the background of the national “carbon
peaking and carbon neutrality” goals, we have studied and evaluated policies, formulated measures based on policies, andimproved the climate risk management process to achieve effective management of climate risks.
Based on our own business experience, we provide collective technologies for constructing carbon-neutral cities and arecommitted to creating climate-resilient communities to better deal with the physical impacts of climate change. Guided by
the science-based carbon-neutrality targets, we carry out various initiatives in clean energy, green buildings, carbon asset
management, low-carbon transportation, resource recycling, and sustainable lifestyles. We provide buildings, parks, andcommunities with comprehensive low-carbon solutions from planning to operation, aiming to be a pioneer in transitioning
towards carbon neutrality in the communities and cities.

Risk Management
Climate risk scenario analysis
To maintain report consistency, Vanke continues to employ the Representative Concentration Pathways of IPCC 8.5 (RCP 8.5)
Scenarios and Hot House World of the Central Bank and Regulators Network for Greening the Financial System (“NGFS”)
for climate risk scenario analysis and comparison. In the next stage, Vanke will further employ the Shared Socio-economic
Pathways (“SSPs”) of IPCC for the above scenarios to facilitate our comprehensive analysis of the impacts of future climatechanges and our adaptation and mitigation efforts.
The climate scenarios are detailed as follows:

1) Decide the management objectives, policies, and implementation approaches
relating to climate change issues;

Physical Risks

2) Acknowledge the assessed and identified risks and opportunities related to ESG(including climate change);

ScenarioName3) Determine the relevant ESG (including climate change) management system andworkflow;

Potential
Temperature
Rises4) Decide on the ESG (including climate change) work plan and assess thecompletion of the work;5) Conduct preliminary examination of the annual ESG report and submit it to theBoard for review;6) Oversee other matters related to ESG (including climate change) of the Company.

Scenario
description:1) Conduct internal and external materiality assessment;

ESG
Execution
Team

147

Executive
Body

Composed of ESG
contact personnelof related functions,
BGs, and BUs; thespecific members
are assigned byresponsible personsof the relevant
functions, BGs, and
BUs.

2) Prepare the Company’s annual ESG report;
3) Assess and identify risks and opportunities related to ESG (including climatechange);4) Assess the gap between ESG (including climate change) work and standard
requirements of the two stock exchanges, and the excellent practices of peer
companies’, make improvement plans and promote their implementation;5) Implement annual work content according to ESG (including climate change)
management objectives;6) Implement resolutions of and other tasks assigned by the ESG Working
Committee.

Scenario
details

Transition Risks

IPCC-RCP8.5

NGFS Hot House World

~4°C

>3°C

No significant policies have been introduced, economic growth,and technological progress still heavily rely on fossil fuels, andbusinesses continue to emit significant quantities of greenhousegases. The global temperature is expected to rise by 4°C by 2100
under this scenario.

This scenario is based on existing
specific policies and those that havebeen announced by governments
around the world and does not evenmeet the current Nationally Determined
Contributions (“NDC”) targets.

Tropical cyclones have widespread effects throughout the world;
China is one of the countries with the most significant losses
caused by tropical cyclones and storm surges, and the averageannual losses from river flood continue to rise. This situation
is likely to worsen due to the intensification of climate change.
China’s densely populated, low-lying coastal cities are threatened
by rising sea levels, storm surges, and coastal erosion, while
inland provinces in northern and western China are experiencing
more frequent and severe heatwaves and droughts, leading toheightened water security risks.

In this scenario, global greenhousegas emissions will continue to rise until
2080, resulting in irreversible changes
such as about 3°C of global warming
and sea-level rise. This scenario is
considered a “hot house” scenario,
characterised by high physical risks
and low transitional risks.

1482023 Sustainability Report

About This Report Report Summary Message Board Statement About Vanke

Identification and prioritisation of climate risk

Climate risks and opportunities

In 2023, we further optimised and adjusted our climate change management in 2022 based on the types of climate risks
provided in ISSB’s International Financial Reporting Standards No. 2: Climate-related Disclosures (IFRS S2) and HKEX’s
Guidance on Climate Disclosures. Based on our business, we required 11 key departments that are highly related to climate
risks and opportunities to review and examine the progress of our climate change risk management in 2023. Through scenario
analysis and policy streamlining, we identified twelve transition risks and ten physical risks in industrial and corporate operationand prepared a list of climate change risks covering all business types. Through internal and external analysis, we identified
seven high-risk items on the aspects of likelihood of occurrence and degree of impact, thus determining the priorities of ouradaptation/mitigation plans for climate change, adjusting our business model and improving our capacity of climate change risk
management.

The Group’s climate risk matrix

High

14 13 10 9
Impact

16
18
20
22

4
2

Type of Risk

1

Policy and legal risks
Policy and legal risksMarket risk

Technology risk

Impact on other stakeholders

7

19

Acute risk

Name of Risk

SignificanceNo.

Type of Risk

Name of Risk

Investors will increasingly focus on the impacts of green investment onthemselves and will issue various green financing instruments, such as green
bonds, green loans, and direct ESG investments, to expand financing channels
for the real estate industry.

Regarding green financing, ourexperience in environmental
management and energy building
technologies will support our project
design, construction, and operationin line with the requirements of green
financing instruments. This support will
help us expand our financing channels
with minimal management adjustments.

We will continue to refine our green
financing policies and framework,
and implement stricter requirements
for information disclosure andtransparency regarding green
financing to enhance our reliability
in the market.

Renewableenergy use

Energy security and the transformation of the energy structure are major
strategies in China. China will vigorously develop renewable energy sources
like hydropower, photovoltaic, wind power, and nuclear power to replace
conventional fossil fuels. Meanwhile, energy stability is being bolstered throughthe use of microgrids, digital energy, and energy storage technologies.Distributed
energy application also enjoys broad prospects, and the real estate industry is
one of the key and important fields of application. We should make early plans
for researching and applying relevant technologies and keep enhancing ourcapacity to cope with climate risks.

Significance

Carbon pricing

High

12

Acute risk

FloodsModerate

Environmental
information disclosure

High

13

Market risk

Changing customer
preferences

Moderate

High

Technology risks

Green building
technologies

High

5

Policy and legal risks

Energy structure andenergy use

High

16

Acute risk

Extreme heat waves

Moderate

6Impact on otherstakeholders

Investors

High

17

Acute risk

Droughts

Moderate

7

Acute risk

TyphoonsHigh

18

Acute risk

Extreme cold weather

Moderate

8

Acute risk

Extreme precipitation

Moderate

19

Chronic risks

Temperature rises

Moderate

9

Policy and legal risks

Green building targets
and standards

Moderate

20

Chronic risks

Water resource pressure
and supply instability

Moderate

10Impact on otherstakeholders

Supply chain (upstream
and downstream)

Moderate

21

Chronic risks

Sea level rises

Moderate

11

Policy and legal risks

Waste management
standards

Moderate

22

Chronic risks

Land desertification

Moderate

149

Future Plan

Ultra-low energy building technologies will significantly reduce building energy
consumption and their negative environmental impacts through innovative
design and construction methods. Vanke is extensively piloting and applying
ultra-low energy building technologies to promote energy conservation in generalbuildings.

High

Raw material cost andsupply4

Potential Financial Impacts

Technologicalsystem of ultralow energy
buildings

Chronic risk

Market risk

3

Potential Business Impacts

Physical risks

Likelihood

No.

ClimateOpportunity

These technologies will reduce building
energy consumption during operation,
thereby reducing operating costs.

Policy and legal risks

17

21

Low

2

8
12
15 11

Climate Opportunity

Transition risks

35

In 2023, based on the climate-related risks and opportunities identified in 2022 under the scenarios mentioned above, which
may affect our business and the climate risk matrix, we conducted a resilience analysis for the seven high-risk items. We thenupdated the corresponding responses, thereby further enhancing Vanke’s climate risk response mechanism.

Investor concern

1
6Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

14

Impact on otherstakeholders

Local communities

Moderate

15

Technology risks

Energy technologies

Moderate

Opportunity forfine operation,
management anddevelopment

Commercial: PEDF (solar photovoltaic, energy storage, direct current andflexibility) technology will help malls reduce costs and improve efficiency by
improving energy utilisation efficiency and weakening the dependence on
conventional energy; green building standards will assist office buildings increating a healthy and comfortable office environment that attracts high-end
tenants through high-efficiency energy management and use of environmentallyfriendly materials.
Commercial and property service: Enhanced new energy infrastructure, such as
charging stations, will attract more consumers, residents, and merchants.

Changing
customerpreferences

House buyers are getting younger, and act as per their consumption
preferences. First-time buyers prioritise green and energy-saving philosophy
within buildings. Vanke’s leading advantages in green building, energy saving
and health culturing technologies will help us attract more consumers.

The state is imposing stricter requirements for green building, and will introduce
mandatory policies on green building and energy conservation in the future.
Vanke has been applying for further green building certification and formulating
its own standards, which will enable it to enjoy leading advantages in the futureindustry competition.
Opportunities toempower green
buildings

We will benefit from government
subsidies through green building
support policies such as those for ultralow energy buildings.
New building systems like green
buildings will enable us to apply forgreen bonds and loans, expanding
our financing channels and reducing
financing costs.

We will continue to promote theapplication of ultra-low energy
building technologies in new
projects, and pilot and plan theapplication of zero-carbon building
technology systems.

The use of renewable energy will savecosts during the operation stage ofsome buildings, thus reducing operating
costs.

Extensive application of renewableenergy utilisation equipment andspecific investment benefit analysesof the use of renewable energy inprojects will keep increasing the
The use of renewable energy will also
generate additional benefits for projects, actual income from business whileboosting green development.
increasing operating income.
These enhancements will increase
visitors, residents, and tenants incommercial and property service
projects, thus boosting operating
income.
Green office buildings will command
rental premiums, increasing rental
income.

Our high-quality green and healthyliving products will attract more young
consumers, enhancing our market
competitiveness and increasing
operating income.

We will advance the developmentof green buildings, green building
materials, the building industry andultra-low energy buildings, helping
Green building materials are crucial for green building and energy conservation.
Vanke to effectively respond to
The Vanke Architecture Research Centre in Dongguan will continue developing
mandatory provisions, dilute transition
green building material products to enhance low-carbon construction.
costs, reduce short-term transition costs
Vanke has taken building industrialisation as one of its green building philosophy, during the implementation of mandatory
and has commenced the housing industrialisation projects accounted for more
provisions, and ensure stable cash flow
than 90% of new construction projects. It will keep boosting the development ofin the future.
circular economy in the construction sector and reducing carbon emissions frombuilding material production in the value chain.

We will deploy more charging
stations and promote PEDF
technology in more projects.
We will closely monitor green
technologies and sustainable
development trends to ensure ourbusiness models align with market
green needs.
We will continue to promote
our green buildings, healthyneighbourhoods, and enjoyable
apartments during marketing.
Through excellent green building
practices, we will continuously
enhance consumers’ and the
public’s awareness of Vanke’s green
building philosophy while increasing
the influence of green consumption
in the industry to promote green andhealthy development of the industry.
We will pay continuous attention
to the changes in policies relating
to green buildings, green building
materials, the building industry
and ultra-low energy buildings,
speed up the realisation of Vanke’s
green building objectives, continue
to optimise the unit cost of green
building project design andconstruction, and maintain stable
cash flow.

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Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Climate Risks

151

Fluctuation of
upstream raw material
prices will increase
procurement andmanagement costs.
Rising energy prices
will increase theoperating costs ofVanke.

We will prioritise stakeholder expectations of
Vanke and continue improving the disclosure ofsustainable development information to address
stakeholders’ concerns. We established the
Vanke ESG data system in 2021, gradually
expanding the scope of data collection to laya solid foundation for carbon emission datacollection and future carbon emission reductionplans. Meanwhile, we will manage and disclose
other environmental information that indirectly
affects climate change more comprehensively.

In 2023, we regularly studied information
on bulk materials such as steel, aluminium,
copper, cement, glass, asphalt, and otherprimary construction materials, conducting
price monitoring, factor analysis, policy
interpretation, supply and demand analysis, andmarket expectations analysis. By monitoring
critical information, we can timely adjust theadjustment mechanism and pricing basis toensure a stable supply and reasonable prices
for materials. Furthermore, we continued toadvance technological and material innovation,
conducting in-depth research on ultra-thin stone,
new inorganic anti-mold coating, and aerogel
insulation materials. We also continued topropel upstream building material industries tostrengthen their adaptation to climate change.

High risk

Green building technologies

Green building transition is a key pathfor Vanke’s high-quality development.
Failure to implement the transition
plan as scheduled will bring severetransition risks. In the initial stage oftransformation, Vanke may require
additional investment to develop green
design technology and patents, leading
to increased costs of R&D, design, andbuilding development. In the medium tolong term, as buildings’ overall emission
performance improves, it will become
increasingly challenging to further
improve energy efficiency throughtechnology. Vanke may need to findother ways to reduce carbon emissions.

High risk

Severe pressure from
regulators will leadto compliance risk
and the risk of extra
expenses.

Vanke is committed to developing highquality green buildings and reducing carbon
emissions across its business chain. We havereceived accreditation for numerous ultra-low
energy and near-zero-energy or low-carbon
demonstration areas, including the Shanghai
NEXUS zero-carbon complex and ultra-low
energy consumption building project, Jiaxing
Kindergarten, Dameisha Carbon Neutral
Experimental Zone, Shanghai Zhongxing
Road No. 1 West Plot, and Shanghai Yabinli
Phase 4 Project. By piloting and planning theimplementation of the green building system, we
mitigate carbon pricing risks transmitted from the
upstream of the value chain while enhancing ourability to resist risks and explore opportunities
from carbon emission trading.

Business Impacts

Energy security and the transformationof the energy structure are major
strategies in China. China will vigorously
develop renewable energy sources
like hydropower, photovoltaic, wind
power, and nuclear power to replace
conventional fossil fuels. Meanwhile,energy stability is being bolsteredthrough the use of microgrids,
digital energy, and energy storage
technologies. Distributed energy
application also enjoys broad prospects,
and the real estate industry is oneof the key and important fields ofapplication. We should make early plans
for researching and applying relevant
technologies and keep enhancing ourcapacity to cope with climate risks.

High risk

In addition to energy, steel, cement, andwood are essential building materials
in the real estate industry. Since allbuilding materials are energy-intensive
and carbon-intensive, real estatecompanies’ supply chain is also affectedby the physical risks of climate change.
During the low-carbon transformation
period, the supply and price of traditionalbuilding materials may fluctuate due
to various factors, including national
carbon reduction and green building
policies, raw material stocks, energy
prices, technological developments, andsubstitutes.

Stricter requirements
for environmental
information
disclosure and more
external services
for verification andauditing will increase
costs.

Type of Risk

Energy structure and energy use

Governments and regulatory authorities
will further tighten environmental
information disclosure requirements
for companies. Vanke may need to
publicly disclose historical data suchas energy consumption and carbon
emissions annually and implement
policies like carbon trading, carbon
tax, and environmental protection tax.
Increasingly strict regulatory requirements
on environmental data accuracy will
result in higher monitoring, statistical, andverification costs and compliance risk of
information disclosure.

Carbon pricing will
significantly impact
Vanke’s external
development, causing
the Company to incur
additional costs fromcarbon emission
quotas and trading tofulfil its environmental
responsibilities.

Responses

Investor concern

Although no carbon tax has been imposedon the real estate industry, some cities,
such as Beijing and Shanghai, havebegun trialling the carbon emission quota
system in real estate project operations.
The Measures for the Administrationof Carbon Emissions Trading (forTrial Implementation) officially tookeffect in 2021. The Measures for the
Administration of Voluntary Greenhouse
Gas Emission Reduction Trading (for Trial
Implementation) was officially released
and took effect in October 2023. The StateCouncil officially issued the Tentative
Regulations for the Administration of
Trading of Carbon Emissions Rights inJanuary 2024, enforcing it in May. Stricter
government management of carbon
emissions trading will bring transition risks
to Vanke’s upstream building material,chemical, and steel industries, and carbon
pricing will increasingly affect Vanke’s
overall business development.

Potential Financial
Impacts

Transition Risks

High risk

High risk

Business Impacts

High risk

Environmental information disclosure
Raw material cost and supply

Transition Risks

Carbon pricing

Type of Risk

Investors increasingly recognise
the correlation between the ESG
performance of real estate and its
ability to generate positive returns in
the long run. Regulatory authorities
have also begun imposing requirements
on investment institutions regarding
their ESG policies and disclosures,
so investors will require companies toprovide more reliable ESG informationthat can be incorporated into investment
analysis and decision-making. Vanke’s
failure to refine its ESG information(including climate information) disclosure
will indirectly affect the diversity of its
financing channels and thus hinderbusiness development.

Potential Financial Impacts

The state is constantly
promoting new building
systems such as green
building and ultra-low
energy building, and theresearch, development
and application of newenergy-saving building
technologies will cause
extra R&D costs to Vanke.
The application of ultra-low
energy building and zerocarbon building systems
will lead to higher costs
than now.

The development andapplication of renewableenergy technologies will
increase costs.
The application ofrenewable energy will
increase the upfront
cost of a single project(including R&D input andconstruction costs in theearly stage).

Investors’ concerns about
ESG may affect investor
relations. The Company
needs to further improve
ESG performanceand optimise ESG
disclosure capabilities
to try its best to satisfy
investor’s requirements
for enterprises’ ESG
management andinformation disclosure,enhance investors’
confidence and prevent
ESG performance from
affecting financing costs
and financing channels.

Responses
The Vanke Architecture Research Centre
in Dongguan and Xiong’an Vanke Green
Research and Development Centre
continued in-depth research on industrialised
construction systems, green buildings,
renewable energy, and waste treatment.
We also continued to promote technologicalinnovation and practical applications.
Additionally, Vanke signed the Framework
Agreement on Cooperatively Promoting the
Implementation of the Technology Evaluation
and Transformation Platform of the Ministryof Environmental Protection in Xiong’an New
Area with the Environmental Development
Centre of the Ministry of Environmental
Protection. We will closely collaborate invarious fields to promote the applicationof environmental technology. For more
information about green building technology,
please refer to the section on Green Design
Commitment.
We have continued to explore the applicationof renewable energy. In October 2023, SCPG
and its partners showcased the phased
results of applying photovoltaic, energy
storage, DC fast charge, and 600 KW fullyliquid cooled supercharge technologies incommercial complexes. VX Logistics has
been dedicated to promoting 100% coverageof newly-built distributed photovoltaic facilities
for cold storage buildings. As of December
2023, 19 rooftop distributed photovoltaic
projects of VX Logistics have been connectedto the power grid, with a gross installedcapacity of 52.02 MW and a total electricity
generation exceeding 22,000 MWh. For
more information about the use of renewableenergy, please refer to the section on
Practicing Green Operation.

Vanke continues to conduct benchmarkingof the ESG rating results to improve ourmanagement of ESG risks. We havedeveloped a variety of ESG inquiry channels
to continuously respond to the concerns ofcapital markets and investors about ESG(including climate change management).
With excellent performance in information
disclosure, ESG management, and investor
relation management, Vanke was ranked 1stamong the enterprises awarded the “2023
All-Asia Executive Team”, “Best Company
Board”, “Best IR Programme”, “Best IR
Team”, and “Best ESG” by Institutional
Investor, an international journal of finance, in
2023.

152

Type of Risk

Potential Financial Impacts

Business Impacts

High risk

Typhoons

About This Report Report Summary Message Board Statement About Vanke

Physical Risks

2023 Sustainability Report

Under IPCC-RCP8.5 Scenarios,
the occurrence rate of expected
damage from once-in-a-century
tropical cyclones increases
significantly, to 18.4% in 2039
and to 21.9% in 2059, comparedwith 1.4% in 2015. Extreme
weather (including extreme
high temperature, extreme
low temperature, extreme
precipitation, etc.) will lead tolonger suspension or delay of
projects under construction, thusincreasing costs. Meanwhile,business suspension of property
management offices and shopping
malls will affect the number ofvisitors and turnover of shopping
malls, and impose greater security
risks on customers, employees,
and the public. In 2023, typhoons
became more complex. The
northward circulation of “Doksuri”
caused extremely heavy rainfall
in more than ten provinces, and“Khanun” brought strong wind andrain to Northeast China, doublingdisasters. All these have impacted
Vanke’s nationwide business.

Tropical cyclones will impact all
business of Vanke:
Property development: They
will lead to project suspension,
longer development periods,
or direct economic losses, thus
resulting in extra construction
costs.
Property services: Typhoons
will lead to flooding of garage
and broken windows, resulting
in extra maintenance costs.
Hotel and resort: Typhoons andrainfall will lead to a decrease in
the number of visitors and widerange operation management,
thus resulting in less operating
income and more operation andmaintenance costs.
Logistics and warehousing:
Rainfall and strong winds willcause damage to packages
and logistics disruption,
resulting in extra operation andmaintenance costs.

Responses

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Indicators

Based on Vanke’s business divisions, each business segment
has formulated policies to handle extreme weather events.
In terms of hotel and resort business, as the Yun Resort
Shenzhen Longcheer is located near the sea, where typhoons
and storms occur frequently, we have developed a typhoon
emergency plan to help minimise the impact.
In terms of property services, Onewo has formulated the
Guidelines for Emergency Response to Meteorological Disasters
and the Natural Disaster Prevention Regulations, formulated
remote operation plans for extreme weather such as typhoons,heavy rain, extreme cold, and high temperature, and establisheda remote and on-site linkage mechanism. We have establishedemergency plans for floods in Wuhan, Changsha, Nanchang,and other cities that are threatened by floods in the Yangtze
River Basin to deploy in advance to deal with extreme weather.
We have established a nationwide remote operation centre
in Wuhan, which forms a remote closed loop of the property
management service process through AIoT artificial intelligencehardware technology. In case of typhoon and heavy rain during
field operations, the system is now able to automatically infer
the areas of heavy rainfall and red warning. For the area witha red warning, the background will automatically send relevant
reminder information to the owner.
In terms of logistics and warehousing, we have made special
risk plans for typhoons and extreme weather. Meanwhile, VX
Zero-carbon Demonstration Park has put into use intelligent
equipment, intelligent modules, and intelligent systems that cankeep iterating, and has applied the self-developed smart IoT
management platform.

Indicator

Unit

2023

Total energy consumption

Tonne (standard coal)

47,024.42

Energy consumption intensity

Property development, property services,logistics and warehousing, hotel and resort:
tons of standard coal/RMB1 million in revenue.

Greenhouse gas emissions (Scope 1 and 2)

Tonne - carbon dioxide equivalent

203,732.62

Greenhouse gas emissions (Scope 3)

Tonne - carbon dioxide equivalent

797,904.76

Including: Carbon emissions from rental data centres

Tonne - carbon dioxide equivalent

1,126.50

Carbon emissions from employee travel

Tonne - carbon dioxide equivalent

6,846.88

Total greenhouse gas emissions from core invested enterprises Tonne - carbon dioxide equivalent789,931.38

0.1010Area in new construction projects meeting green building
evaluation standards

Million square meters

Number of new ultra-low energy and near-zero-energy or lowcarbon demonstration areas from 2021 to 2023

project

8+Percentage of materials purchased from Green Supply Chain
Action whitelisted suppliers

%

100

19.64

Metrics and Targets
Goals
Vanke's Short-, Medium and Long-Term Management Goals for Carbon Emissions

Vision: Become a pioneer in green development
Goal of carbon peaking and carbon neutrality: Bring carbon peaking for total Scopes 1 and 2 carbon dioxide
emissions by 2030 or earlier and achieve carbon neutrality for total Scopes 1 and 2 carbon dioxide emissions
by 2060 or earlier.

GreenTransformation

General Carbon Emission Reduction Plan

Short-term phased goals
Drive the green and low-carbon transformation of BG and BU, enhance energy efficiency and reduce carbon emissions.
Property development· With 2021 as the base year, a cumulative total of five ultra-low energy, near-zero-energy or low-carbon demonstration
zone projects will be certified by 2025.

Low-carbon
Development· For commercial office projects in operation using centralised cooling systems, compared with the energy consumption
standards in 2020, the energy consumption of cold sources is reduced by 10% by 2025.
Logistics and warehousing· Take refrigeration energy consumption as an important indicator of power consumption in the park: by 2023, therefrigeration energy consumption will be reduced by 5% against a 2022 baseline.
Retail property development and operations· By 2025, the electricity intensity of the public areas in 20 shopping malls will be reduced by 6% against a 2021 baseline.
· By 2025, at least 18 shopping malls will realise solar power generation, and the power generated will account for 2% of
the electricity consumption in the public areas of the shopping malls. We plan to continue to promote the application ofsolar power generation in the future.

From 2021 to 2025
153

Long-term goal

Medium-term goal
Bring total Scopes 1
and 2 carbon dioxide
emissions to a peak forby 2030 or earlier

2023

Towards
CarbonNeutrality

Achieve carbon neutrality
for total carbon dioxide
emissions for Scopes 1
and 2 by 2060 or earlier

Green transformationof businessGreen and innovative
management

Green building

Green supply chain

Green construction

Green assets

Green property
servicesGreen brands

Green logistics andwarehousing+

Green office

Green commercial
operations
Green leasing

2026
154

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About This Report Report Summary Message Board Statement About Vanke

We have carried out initial identification of Scope 3 carbon emissions in accordance with the Greenhouse Gas Protocol:
Corporate Value Chain (Scope 3) Accounting and Reporting Standard, and have been continuously tracking relevant data.
In 2023, we further included the carbon emissions from the means of transportation used by employees in business travels
in Scope 3. Till now, we have identified three of the 15 Scope 3 emissions from upstream leased assets, business travel andinvestments. In the next step, we will review all Scope 3 emissions, and make clear the key categories of emissions to be
managed and disclosed. At the same time, we are going to incorporate the carbon emissions from upstream supply chain into
the statistics and tracking system through AUPUP, and will promote carbon emission reduction of the upstream supply chain
through the supply chain ESG scheme.

Type

UpstreamleasedassetsBusinesstravelDescription

Source of Activity Source of Emission
Level Data
FactorCarbonemissions fromrental data
centres

Emission factor of
power grid in China
in 2012 releasedby the National
Centre for Climate
Change Strategy
and International
Cooperation (“NCSC”)

Carbonemissions from
employee travel

Records ofelectricity
consumptionof rental data
centresTravel-related
data frombusinesstravel platform
partners

Greenhouse gas
assessment tools
provided by businesstravel platforms
partners

Unit

2021

2022

2023

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Enhance Climate Resilience in Multiple
Dimensions
Biodiversity conservation
Vanke is committed to reducing dependence and impact on nature, promoting biodiversity and ecological conservation, andleveraging Vanke’s positive impact on nature in strict accordance with the Law of the People’s Republic of China on Appraisingof Environmental Impacts, the Regulations of the People’s Republic of China on Nature Reserves, the Regulations on the
Administration of Construction Project Environmental Protection, the Kunming-Montreal Global Biodiversity Framework of theConvention on Biological Diversity (CBD), and China's strategy for building an ecological civilisation.

Biodiversity and ecological impacts
Tonne carbon dioxide
equivalent

3,243.69

2,625.19

1,126.50

Biodiversity conservation has been integrated into national development strategies. As an integral part of biodiversity, the aquatic
ecosystem plays an essential role in maintaining ecological balance and guarding national ecological security. Water restoration
is a key part of Vanke’s efforts to improve its sustainability management and an important means to enhance our biodiversity.

GovernanceTonne carbon dioxide
equivalent//

6,846.88

Biodiversity conservation is an important initiative for Vanke to actively address climate change and practice ecologicalconservation. We have established a three-tier ESG governance structure, the Board of Directors - ESG Working Committee- ESG Executive Team, and included climate change and biodiversity conservation in their responsibilities. To focus onenvironmental governance, we have established Wanchuang Qinglv to be responsible for impact assessment, management andremediation of natural dependencies.

Strategy

Investments

Total greenhousegas emissions
from core
investedenterprises (total
greenhouse gas
emissions from
SCPG)

SCPG’semission datacollected
through theenvironmental
data system

Standards in the
Notice on theManagement ofGreenhouse Gas
Emission Reportingof Power Generation
Enterprises from 2023
to 2025

We will actively position Vanke’s links with nature, refer to TNFD and other methods to identify and assess our dependencies,
impacts, risks and opportunities related to nature, and promote Vanke to:Tonne carbon dioxide
equivalent

206,575.69

564,255.35

789,931.38

In addition, we have set a number of metrics and targets for 11 environmental issues, including greenhouse gas emissions,energy efficiency improvement, water resources management, and waste management, and have been tracking the progress ofannual targets. For more information, please refer to the section of “Environmental Practices – Goals and progress”.

1551) Drive business development in an eco-friendly manner;
2) Advance the sustainable use and conservation of natural resources through measures such as promoting housing industrialisationand enhancing the application of renewable energy sources;
3) Leverage Vanke’s influence to boost the concept of biodiversity conservation to the public.

Risk management
Wanchuang Qinglv has conducted initial risk identification in business development, and actively take countermeasures:
List of Risks

Potential Business Impacts

Responses

Risk of water
eutrophicationand fouling

Water fouling will affect the sale of Vanke’s
new real estate projects, and water
fouling after delivery will lead to customer
complaints and adverse impacts.

In pre-planning for real estate projects, we will discharge
all community sewage into the municipal sewage network
and advocate philosophy such as collecting rainwater toreplenish landscape water for water resource reuse. Bybuilding a digital intelligent ecological maintenance system
for newly built water bodies, we will constantly maintainwater cleanliness.

Risk ofsupply chain
biodiversity

Environmental violations by suppliers willaffect the environmental friendliness of
Vanke’s products and the stability of thewhole supply chain.

We incorporated all biodiversity factors into our procurement
procedure in 2023.

156

2023 Sustainability Report

About This Report Report Summary Message Board Statement About Vanke

We adopt dual-cycle management for natural risks, conducting environmental assessments for the project development process
and material selection process to provide customers with natural and highly-environmental green products with minimum
environmental risk.
Before project commencement, we undergo strict environmental impact assessment and approval procedures, carry out earnest
feasibility assessments and environmental impact assessments and register new projects, and make development arrangementswith the approval of local environmental authorities, and announce them on government websites for public scrutiny.
We have set up a professional team working with the Institute of Public and Environmental Affairs (“IPE”). During the reporting
period, we investigated the environmental compliance of core suppliers to reduce supply chain risks and strengthen suppliers’
awareness of environmental compliance management. We conducted environmental compliance reviews of suppliers with risks
on a quarterly basis and required them to disclose risk causes and remediation progress on the IPE website.

Metrics and targets
We have completed ledger statistics of biodiversity conservation, suchas soil restoration and water body restoration. In the next step, after
building a more complete database and as appropriate, we will set anddisclose natural environment-related improvement targets according to therequirements of the Board of Directors.

In 2023, we restored water bodies of a total
area of10,000m2

The rare species "Craspedacusta" is discovered in the artificial lake, which has been restored by
Wanchuang Qinglv, in Vanke Feicui Xinhu Nantong
Feicui Xinhu once faced serious ecological challenges, including lake sedimentation, disorganised drainage systems,
murky water, uncontrolled growth of aquatic vegetation, and the invasion of non-native species, all contributing to an
extremely fragile ecosystem. Through comprehensive aquatic ecological restoration measures, Wanchuang Qinglv
successfully restored the water quality of the artificial lake. This has not only rebuilt a healthy aquatic ecosystem but alsoenhanced its landscape value.
Dredging and disinfection In severely silted areas, dredging operations were conducted to reduce internal pollution.
After dredging, the sediments underwent disinfection and passivation to eliminate pathogenic microorganisms andprevent further release of pollutants.
Optimisation of drainage systems Existing drainage pipelines were reorganised to put in place a rainwater and sewage
diversion system. This ensures that the artificial lake can receive appropriate rainwater replenishment while directing
sewage properly to the municipal sewage treatment system.
Ecological compatibility and biomanipulation
Guided by the principles ofnutrient cycle and energy flow and combined with the biomanipulation theory,the categories and quantities of submergent plants and aquatic animals werescientifically planned under the guidance of the PCLake model. Additionally,
the underwater forest technology was utilised to promote self-sustainability andrestoration of the aquatic ecosystem with minimal human intervention.
After more than three years of ongoing efforts, significant improvements havebeen achieved in the water quality of the artificial lake in Feicui Xinhu, stabilising
the ecosystem. The improved ecological environment of the lake has attracted
wildlife such as little egrets and wild ducks. Notably, in 2021, the rare species“Craspedacusta”, also known as the “panda of the water”, was discovered,demonstrating the project's dual benefits in terms of ecology and landscape.

157

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Climate change action
Improving Vanke’s climate change influence
Vanke and Shanghai Urban Regeneration Institute (“SURI”) jointly establish the “SURI Carbon Neutrality
Working Committee”

Vanke, along with 23 enterprises and public
institutions, including universities, research
institutes, green finance institutions, and design,
construction, and energy institutes, initiated China’s
first “Carbon Neutrality Working Committee” in thefield of urban renewal. The committee is committed
to refining green and low-carbon policies,
technologies, and standard systems, developing
key low-carbon, zero-carbon, and negative-carbon
technologies, building application demonstration
samples with an international advanced level,
and creating a green base for high-quality urban
development in the future.

Unveiling ceremony of the “Carbon Neutrality Working Committee”

Vanke’s green, low-carbon and sustainable actions debut at COP28

Vanke actively practices its commitment to green and sustainable development. We recognise the impacts of climatechange on the global environment and society, and we are taking active and practical actions, implementing effective
projects to demonstrate our results and explorations in low-carbon development and carbon-neutral communities.
During COP28, Vanke Foundation supported a series of “China Pavilion” conferences and themed exhibitions,demonstrating to the world the positive actions of Chinese non-governmental organisations and enterprises in tacklingclimate change. Vanke has also presented its practices in carbon-neutral communities, green buildings, and the green
transformation of supply chains, such as the carbon-neutral renovation of the Vanke Centre in Dameisha and theapplication of “black soldier fly food waste treatment technology”.
The green practices of Vanke have attracted wide attention from around the world, illustrating Chinese enterprises’
positive attitude and innovative strength in responding to climate change and providing valuable experience and reference
for global climate actions.

Photo of Feicui Xinhu, Nantong

Melting rooftop - Exhibit of the Qomolangma Snow Leopard
Project

A site photo of the Coping with Climate Change andProtecting Human Health Conference1582023 Sustainability Report

About This Report Report Summary Message Board Statement About Vanke

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Appendix
ESG Key Performance
Environmental data
2023

2022
Logistics and warehousing

Indicator No.

Unit

Summarya)

Propertydevelopment

203,732.6222

Shared area ofhigh standard
Shared area (including
logistics park
Cold chain logistics park
project management(including project (including transportation)
office)management team
office)Property services

Hotel and resort

13,784.0963

5,207.4465

33,496.6719

229.9199

46,903.7252

104,110.7624

69.7

31.6

42.3

42

5.4

65.9

Headquarters
offices

2021

SCPG

Logistics and warehousing

Summarya)

TenantPropertydevelopment

Property services

Hotel and resort

Headquarters
offices

SCPG

Shared area of highstandard logistics Cold chain logistics Shared area (including
park (including project park (including
project management
management teamtransportation)
office)office)Logistics and warehousing
Propertydevelopment

Summarya)

TenantProperty services

Hotel and resort

Headquarters
offices

SCPG

Shared area of highstandard logistics Cold chain logistics
park (including
park (including
project managementtransportation)team office)

Shared area(including project
management office)TenantA1 Emissions
A1.2 Greenhouse gas emissions and intensity
Total greenhouse gas emissions(Scope 1 and 2)

Greenhouse gas emission
intensity (Scope 1 and 2)

Tonne - carbon dioxide
equivalent
Property development,
property services, logistics
and warehousing: kg CO2e/
GFA; hotel and resort: kg
CO2e/guest stay
Property development,
property services, logistics
and warehousing, hotel andresort: t CO2e/RMB million
revenue

171,189.9995

0.4374

12,663.1573

8,191.0001

35,761.6276

152.5884

15,937.8278

98,483.7983

69.4

49.6

47.2

27.9

2

94.1

234,458.7672

0.3398

10,815.975

3,833.0528

36,697.7212

125.7806

128,164.0393

54,822.1983

65.3

58.1

54.3

25.2

15.1

97.3

0.5178

Direct carbon dioxide emissions Tonne - carbon dioxide(Scope 1)b), 1)
equivalent

7,807.3166

2,385.1186

511.7288

4,312.7844

35.5611381.5756

180.5481

11,129.8918

4,063.0607

664.2122

4,528.1603

5.6825672.4479

1,196.3282

9,472.4005

2,173.0754

247.4091

5,709.5424

15.3209945.337381.7157

Emissions from gasoline

Tonne - carbon dioxide
equivalent

2,333.942

1,662.4177

456.4977

172.54135.56113.40593.5186

3,982.9699

3,358.3161

531.7582

60.4076

5.682516.5383

10.2672

1,446.0871

1,167.3508

153.3036

87.2557

15.3209

7.307715.5484

Emissions from diesel

Tonne - carbon dioxide
equivalent263.7326

0.03130.208834.5613051.9017177.0295

1,487.2601

0.03130.2088276.4908076.1073

1,134.4219

1,279.2606

0.43074.8278450.0621

0457.7727

366.1673

Emissions from natural gas forheatingTonne - carbon dioxide
equivalent

1,730.3684

357.4652

0.8551

1,045.7801

0326.2680

1,412.2018

298.7607

69.6967

412.3030

0579.8023

51.6391

1,821.8838

590.52180758.2550473.107

0

Emissions from natural gas fordomestic use

Tonne - carbon dioxide
equivalent

3,472.8866

358.8174

54.1672

3,059.902

0004,242.0892

400.5818

62.5485

3,778.9589

0

0

0

4,911.9562

402.3791

89.1585

4,413.269

0

7.1496

0

Emissions from pipeline gas

Tonne - carbon dioxide
equivalent

6.387

6.387

0

0

0

0

0

5.37085.3708

0

0

0

0

0

13.2128

12.3930.11920.7006000Indirect carbon dioxide
emissions (Scope 2)c), 2), 6)

Tonne - carbon dioxide
equivalent

195,925.3055

11,398.9777

4,695.7175

29,183.8875

194.3588

46,522.1497

103,930.2143

160,060.1079

8,600.0966

7,526.7880

31,233.4674

146.9059

15,265.3799

97,287.4701

224,986.3666

8,642.8996

3,585.6436

30,988.1787

110.4597

127,218.7024

54,440.4826

Emissions from purchased
electricity2)

Tonne - carbon dioxide
equivalent

191,402.9758

10,663.9573

3,835.4413

26,962.0116

194.3588

46,522.1497

103,225.0571

156,485.8236

7,920.9334

7,222.1885

29,234.2516

146.9059

15,265.3799

96,696.1643

223,905.2939

7,717.6039

3,429.8666

30,988.1787

110.4597

127,218.7024

54,440.4826

Emissions from purchased
heating power6)

Tonne - carbon dioxide
equivalent

4,522.3297

735.0204860.2762

2,221.8759

705.1572

3,574.2843

679.1632

304.5995

1,999.2158

00591.3058

1,081.0727

925.2957

155.7770

Indirect carbon dioxide
emissions (Scope 3)d), 1), 2), 6)

Tonne - carbon dioxide
equivalent

797,904.7625

Category 6: Business travel- emissions from employee
travel3)

Tonne - carbon dioxide
equivalent

6,846.8777

Category 8: Upstream leased
assets - emissions from thedata centre4)

Tonne - carbon dioxide
equivalentCategory 15: Investments SCPG emissions5)
Emissions from gasoline1)

566,880.5406

209,819.3813

1,126.5

2,625.19

3,243.69

Tonne - carbon dioxide
equivalent789,931.3848

564,255.3534

206,575.6913

Tonne - carbon dioxide
equivalent

52.047952.04790134.3711

134.3711

031.330931.33090

Tonne - carbon dioxide
equivalent

27.042226.9482

0.094

24.9056

24.9056010.7428

10.7428

0

Emissions from natural gas for Tonne - carbon dioxide
equivalentheating1)

14,213.1474

14,116.4183

96.7291

13,814.1796

13,231.7702

582.4094

10,430.2668

10,260.0361

170.2307

Emissions from natural gas for Tonne - carbon dioxide
equivalent
domestic use1)

21.6108021.6108

817.573789.061

28.5120851.783

851.783

0

Emissions from pipeline gas1)

Tonne - carbon dioxide
equivalent2.24832.248303.9132

3.91320

0

0

0

Emissions from purchased
electricity2)

Tonne - carbon dioxide
equivalent731,479.7714

232,314.7931

499,164.9783

521,384.6539

176,834.3886

344,550.2653

190,515.0288

174,736.849

15,778.1798

Emissions from purchased
heating power2), 3)

Tonne - carbon dioxide
equivalent

44,135.5168

21,589.1502

22,546.3666

28,075.757

17,501.0253

10,574.7317

4,736.539

4,736.539

89,958.2

209,933.9

Emissions from diesel

1)

A1.3 Total hazardous waste produced and intensity
Office - hazardous waste

Hazardous waste intensity

159

kg

25,091.9

Property development,
property service, logistics andwarehousing, SCPG: kg/GFA;
hotel and resort: kg/guest
stay
Property development,
property services, logistics
and warehousing, hotel
and resort: kg/RMB million
revenue

0.053920,406.2

2,110.2

1,220.5

75

880

400

12,383.6

2,136.3

0.10320.01280.00150.01370.00010.00030.00260.00050.178536,033

1,759.5

1,665.780

1,015

49,40587,006.7

1,618.5

0.19750.01070.00220.01460.00010.04720.02180.000554,818.9

1,673

153,416.5

0

0

25.5

2,895,768.7

00.33080.02540.22710001.095100.4636160

2023 Sustainability Report

About This Report Report Summary Message Board Statement About Vanke

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

2023

2022
Logistics and warehousing

Indicator No.

Unit

Summarya)

Propertydevelopment

SCPG

Shared area ofhigh standard
Shared area (including
logistics park
Cold chain logistics park
project management(including project (including transportation)
office)management team
office)Logistics and warehousing
Summarya)

Property services

Hotel and resort

42,951.509

712.4065

3,526.9830

24.38

38,467.1787

1,278.1801

55,018.851

77,885.7482

0.21720.00430.00440.00450.00440.00080.01150.0171

Headquarters
offices

2021

TenantPropertydevelopment

Property services

Hotel and resort

Headquarters
offices

SCPG

Shared area of highstandard logistics Cold chain logistics Shared area (including
park (including project park (including
project management
management teamtransportation)
office)office)Logistics and warehousing
Summarya)

TenantPropertydevelopment

Property services

Hotel and resort

Headquarters
offices

SCPG

Shared area of highstandard logistics Cold chain logistics
park (including
park (including
project managementtransportation)team office)

Shared area(including project
management office)TenantA1.4 Total non-hazardous waste produced and intensity
Total non-hazardous waste

Non-hazardous waste intensity

Tonne

86,960.6373

Property development,
property service, logistics andwarehousing, SCPG: Tonne/
GFA; hotel and resort: Tonne/
guest stay
Property development,
property services, logistics
and warehousing, hotel andresort: Tonne/RMB million
revenue

0.186777,800.977

49,724.3848

1,126.137

2,589.4392

4.18

22,329.38

2,027.456

53,862.3425

83,100.9966

0.27260.00680.00340.00080.00280.00190.01350.0253

159,710.6908

0.154480,380.468

930.746

32,948.158

0.485

0.0141

0.0488034,395.54

11,055.7788

166,324.92

4,812.6

0.004

0.0196

0.06290.019

0.3527

Office - recyclable waste

Tonne

9,173.9847

7,699.286

54.2865

212.1494

18.7500

820.28369.2328

860.891

3,251.6566

16,898.3001

14,017.404

34.03586.8561

1.36

2,193.17

565.475

508.9883,299.7076

31,261.5692

15,526.5674

702.335

1,164.823

0

3,531

10,336.8438

516.420

Office - other waste

Tonne

73,579.0091

34,684.75

563.67

1,106.6298

036,320.812

903.1473

49,885.4535

41,018.2756

58,358.9559

35,188.0938

989.157

1,064.8941

019,702.87

1,413.941

40,025.9105

46,774.505

112,289.9846

64,205.1716

127.802

18,052.866

029,222.73

681.415

137,479.65

1,800

Kitchen - food waste

Tonne

4,207.6435

567.47394.45

2,208.2038

5.63

1,326.0867

5.8

4,272.5065

33,615.816

2,543.721

518.887

102.945

1,437.689

2.82

433.3448.04

13,327.444

33,026.784

16,159.137

648.729100.609

13,730.469

016,41.81

37.52

28,328.85

3,012.6

3,839.8447

1,350.7163

9,127.0002

59.0804

10,252.1449

22,395.6384

64,194.9278

114,348.7126

40,986.9355

4,039.1727

1,981.2966

9,658.1783

34.40613,689.9697

21,583.9121

51,638.4869

77,709.6779

53,270.4684

3,225.459

907.8321

9,991.147

30.7743

27,422.1713

11,693.0847

45,326.4896

3,442.4054

0.01940.00820.01150.01080.00120.01420.01340.02520.0221

0.012

0.01270.00630.00050.02060.01290.02370.01950.01380.01480.00620.00320.02070.01710.01360

A2 Use of resources
A2.1 Direct and/or indirect energy consumption by type in total and intensity
Total energy consumptione), 7)

Energy consumption intensity

Ton (standard coal)

47,024.4249

Property development,
property service, logistics andwarehousing, SCPG: tce/
GFA; hotel and resort: tce/
guest stay
Property development,
property services, logistics
and warehousing, hotel
and resort: tce/RMB million
revenue

0.10100.08130.1176

Gasoline consumption

Litre

1,026,811.288

731,376.0276

200,834.9

75,908.95

15,645

1,498.41

1,548

22,898.3267

0

1,752,296.474

1,477,481.804

233,945.53

26,576.15

2,500.00

7,275.96

4,517.03

59,116.20

0636,201.975

513,572.73

67,445.485

38,387.92

6,740.37

3,215

6,840.47

13,783.95

Diesel consumption

Litre

101,046.98

12

80

13,241.88

019,885.7

67,827.4

10,32536569,831.49

12

80

105,935.18

029,159.9434,644.41

9,542.36

0490,138.12

165

1,849.74

172,437.57

0175,391.84

140,293.97

4,116

0

Total natural gas consumption

3m

2,408,914.36

331,612.29

25,473.31

1,900,778.76

0151,05006,535,378.85

54,7872,617,727.3

323,769.68

61,224.62

1,940,399

0

268,427

23,907

6,491,125.53

269,634

3,117,518.5388

459,676.3388

41,277.1

2,394,224.1

0222,34105,144,360.73

78,810.52

Natural gas consumption forheatingm3

0

151,05006,535,378.85

44,782653,797.13

138,315.13

32,267

190,8810

268,427

23,907

6,125,819.53

269,634

843,464.71

273,389.713

0351,0440

219,03104,750,016.73

78,810.52

801,096.48

165,493.13

395.88484,157.47

Natural gas consumption fordomestic use

m3

1,607,817.88

166,119.16

25,077.43

1,416,621.29

0

0

0

0

10,005

1,963,930.17

185,454.55

28,957.62

1,749,518000365,306

13,2002,274,053.8258

186,286.6258

41,277.1

2,043,180.1

0

3,310

0

394,3440

Pipeline gas consumption

m3

28,186.06

28,186.06

0

0

0

0

0

9,922

0

23,701.82

23,701.7

0.12

0

0

0

0

17,269058,309.26

54,691.26

526

3,092

0

0

0

0

0

Electric power consumption

10,000 kWh

33,611.742629

1,917.696557

674.656782

4,727.689211

34.0801

8,157.487226

18,100.132753

40,735.542104

87,526.736499

7,487.925533

1,436.504025

1,267.500488

5,126.118105

25.7594

2,676.728014

16,955.315501

31,007.257345

60,415.617263

38,629.76043

1,418.115227

592.398489

5,333.593578

19.012

21,896.50643

9,370.134701

30,256.17008

2,715.6936

Purchased heating power

GJ

41,112.0889

6,682.0038

7,820.6931

20,198.8716

006,410.5204

196,265.0019

204,966.969

27,755.786525

1,436.504025

2,769.0863

18,174.6893

005,375.5069

159,100.2297

96,133.9242

9,827.9337

8,411.7791

1,416.1546

2,289,733.126

175,034.776

70,052.476

823,410.339

267

598,219.69

622,748.845

5,110,797.69

7,721,854.66

1,743,477.61

152,329.76

129,598.95

695,027.86

198

291,233.05

475,089.99

3,654,203.57

5,240,781.94

3,441,300.321

164,450.14

60,926.83

867,324.5

10,493

2,132,811.951

205,293.9

3,941,773.02

268,6110.88510.42561.03880.04880.06850.3943

1.06591.69940.835

0.78490.9166

0.03620.03630.45370.916

1.59750.99230.92381.28392.09860.25050.3642

1.49071.060843,059.4453

A2.2 Water consumption in total and intensity
Water consumption

Water consumption intensity

Tonne
Property development,
property service, logistics andwarehousing, SCPG: Tonne/
GFA; hotel and resort: Tonne/
guest stay
Property development,
property services, logistics
and warehousing, hotel andresort: Tonne/RMB million
revenue

4.91633.46047.6001

Notes

Reference standards for data calculationa) The summarised data for 2021, 2022 and 2023 are included in the consolidated scope, covering four sectors: Property development, property services,
hotel and resort, and logistics and warehousing.

1) C arbon dioxide emissions from gasoline, diesel, natural gas and pipeline gas were calculated by referring to the Guidelines for Accounting and Reportingof Greenhouse Gas Emissions from Operating Units (Enterprises) of Public Buildings (Trial) issued by the National Development and Reform Commission.

b) Scope 1 Carbon dioxide includes direct emissions from gasoline, diesel, natural gas, and pipeline gas used by each business form within the
consolidation scope.

2) Indirect carbon dioxide emissions from purchased electricity and purchased heat were calculated according to the Guidelines for Accounting and Reportingof Greenhouse Gas Emissions from Operating Units (Enterprises) of Public Buildings (Trial) issued by the National Development and Reform Commission.
The power emission factors in the Chinese Mainland referred to the standard of the Notice on the Management of Greenhouse Gas Emission Reporting ofPower Generation Enterprises from 2023 to 2025, and the power emission factors in overseas regions referred to IGES List of Grid Emission Factors (https://www.iges.or.jp/en/pub/list-grid-emission-factor/en).

c) Scope 2 Carbon dioxide includes indirect emissions from purchased electricity and heat used by each business form within the consolidation scope.
d) Scope 3 Carbon dioxide includes indirect emissions from Category 6: Business travel, Category 8: Upstream asset leasing, and Category 15: Investment.
Specifically, emissions from Category 15: Investment encompass those from gasoline, diesel, natural gas, pipeline gas, and purchased electricity used
by SCPG in shared area (including project management office) and tenants.
e) Total energy consumption refers to the total usage of gasoline, diesel, natural gas, pipeline gas, purchased electricity, and purchased heat.

3) F or Scope 3 carbon dioxide emissions from Category 6: Business travel (including air and train journeys), the carbon emission factors are derived from the
GHG assessment tool provided by the travel service provider.
4) F or Scope 3 carbon dioxide emissions from Category 8: Upstream leased assets (Leased data centre), the carbon emission factors are derived from theemission factor of power grid in China in 2012 released by the National Centre for Climate Change Strategy and International Cooperation (“NCSC”).
5) The formula and carbon emission factors for Scope 3 carbon dioxide emissions in from Category 15: Investments (SCPG) are consistent with that of Scope
1 and 2 carbon dioxide emissions.
6) The scope of statistics for purchased heat is central heating, of which the energy consumption is calculated using the formula in Standard CJJ/T34-2022,
Design Standard for Urban Heating Network.
7) The total energy consumption is converted into standard coal according to Standard GB/T 2589-2020, General Rules for Comprehensive Energy
Consumption Calculation.

161

162

2023 Sustainability Report

About This Report Report Summary Message Board Statement About Vanke

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Social performance
ESG Indicator

Unit

2023

2022

2021

ESG Indicator

B1.1 Total workforce by gender, employment type, age group and geographical region
Total number of employees

Unit

2023

2022

2021

Employee category

B1 Employment

Person131,097

131,817

139,494

GenderManagement Staff

Hour

40.35

31.30

27.26

Non-management Staff

Hour

25.51

25.20

28.07

Training type

Male

Person72,57872,08675,287

New employee training

Hour

6

6

7

FemalePerson58,51959,73164,207

Other special training

Hour

37.87

39.43

67.95

Full-time employees

Person131,097

131,817

139,494

Part-time employees

Person000Beijing Region

Supplier

3,646

3,511

2,447

29 years old and below

Person50,08855,252

61,738Southern Region

Supplier

4,846

6,117

3,440

30 to 49 years old

Person75,19670,756

67,964

Central China region

Supplier

2,381

2,139

1,750

50 years old or above

Person

5,813

5,809

9,792

Northwest region

Supplier

1,484

1,296

1,021

Shanghai Region

Supplier

6,392

6,332

4,318

Employment category

B5 Supply Chain Management
B5.1 Number of suppliers by geographical region
RegionAge

RegionChinese Mainland

Person130,852

131,573

139,263Southwest region

Supplier

2,455

2,226

1,399

Hong Kong, Macau and Taiwan

Person

198

191

197

Northeast region

Supplier

1,716

1,619

1,562

Overseas

Person

47

53

34

%

29.8

30.1

26.07

0

0

0

Turnover rate of male employees

%

29.7

29.9

27.2

Turnover rate of female employees

%

29.9

30.4

24.7

Complaint

1,702

2,082

3,727

Turnover rate of employees aged 29 and below

%

34.3

36.2

32.3

95

Turnover rate of employees aged from 30 to 49

%

25.8

24.3

20.9

Turnover rate of employees aged 50 or above

%

27

32.9

15.3

Turnover rate in Chinese Mainland

%

29.8

30.2

26.1

Turnover rate in Hong Kong, Macau and Taiwan

%

14.1

21.4

1

Turnover rate overseas

%

18.2

19.7

22.7

B6 Product Responsibility

B1.2 Employee turnover rate by gender, age group and geographical region
Rate of employee turnoverB6.1 Percentage of products sold or shipped subject to recalls for safety and health reasons totally
Number of products sold or shipped subject to recalls forsafety and health reasons

Gender

B6.2 Number of product- and service-related complaints received
Number of customer (product or service) complaints
Product and service satisfaction

Age

Customer satisfaction about after-sales services

B2 Health and safety

Number of days lost due to work-related injury4

Day

536

234

760

LTIR

%

0.00990.00610.0129

2

2

100

100

100

Male

%

55.4

54.7

54.0

Female

%

44.6

45.3

46.0

Management

%

0.8

0.9

0.9

Non-management

%

99.2

99.1

99.1

Other special training

%

42.9
57.1

34.2

Hour

25.63

25.26

27.87

Male

Hour

24.11

24.05

31.65

Female

Hour

27.52

26.72

23.44

86.76

180

Number of newly obtained patents in the reporting period

Patent69

100

Number of accumulated intellectual property rights held

Case

97

319

23

Number of accumulated software copyrights held

Copyright

261

172

119

Number of accumulated trademarks held

Trademark

832

776

49

3

3

3

Hour

Number of cases where the Company is regarded as aparticipant in unfair competition

Case

0

0

0

Number of cases in violation of the anti-monopoly law

Case

0

0

0

Lawsuits regarding corruption, bribery, extortion, fraud ormoney laundry

Case

0

0

0

Person22

17

12

RMB’0,000

11,696

12,00028,500

RMB’0,000

8,000

10,00015,000Total amount invested by the Vanke Foundation for publiccharity

RMB’0,000

12,4997,283

11,992

Number of participants in voluntary activities

Person-times

3,192

10,557499

Hour

100,380

108,750

1,996

B8.2 Resources contributed to the focused area
Amount of external donations
Including: Amount invested in rural vitalisation

B3.2 Average training hours completed per employee by gender and employee category
The total training hours of workforce

91.24

B8 Community Investments

65.8

61.2

92.81

Number of board members and senior managers
participating in anti-corruption training

Training type
38.8

Score

B7.3 Anti-corruption training

Employee category%

94

Overall customer satisfaction of Port Apartment business

B7.1 Number of concluded legal cases regarding corrupt practices brought against the issuer or its employees during the reporting period

GenderNew employee training

98

B7 Anti-corruption

B3.1 Percentage of employees trained by gender and employee category
%

97

97

Average hours of information security training hours

0

B3 Development and Training

Total number of employees trained

97

Score

B6.5 Description of how to implement and monitor information guarantee for consumers

B2.1 Number and rate of work-related fatalities occurred in each of the past three years including the reporting year, total number of days lost due to work-related injury, and LTIR
Person%Real-time satisfaction upon delivery

B6.3 Description of practices relating to maintaining and protecting intellectual property rights

RegionNumber of work-related fatalities3

Time

Hours spent on voluntary activities

Gender163

3

 he number of work-related fatalities does not include injuries or deaths not caused by work, such as traffic accidents on the way to and from work orTsudden illnesses.

4 he statistics on total number of days lost due to work-related injury cover property development, logistics and warehousing, rental housing, retail propertyTdevelopment and operations (consolidated), hotel and resort, and overseas business.

1642023 Sustainability Report

About This Report Report Summary Message Board Statement About Vanke

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

ESG Index
Environmental, Social and Governance Scopes and General Disclosure and Key
Performance Indicators (KPIs)

Environmental, Social and Governance Scopes and General Disclosure and Key
Performance Indicators (KPIs)

Corresponding Section

Environment
General Disclosure Information on: (a) The policies; and (b) compliance with relevantlaws and regulations that have a significant impact on the issuer relating to air andAdvancing Green Construction; Practicing Green
greenhouse gas emissions, discharges into water and land, and generation of
Operation
hazardous and non-hazardous waste.

B4:
Labour Standards

Use of Resources

A3:
The Environment
and Natural
Resources
A4:
Climate Change

B4.2

A1.3

Total hazardous waste produced (in tonnes) and intensity (e.g. per unit
Appendix: ESG Key Performanceof production volume, per facility).

General Disclosure Policies on managing environmental and social risks of the
supply chain.

Win-win PartnershipA1.4

Total non-hazardous waste produced (in tonnes) and intensity (e.g.
per unit of production volume, per facility).

Appendix: ESG Key Performance

B5.1

Number of suppliers by geographical region.

Appendix: ESG Key Performance

A1.5

Description of emissions target(s) set and steps taken to achievethem.

Environmental Practices - Our Strategy
B5.2

Description of practices relating to engaging suppliers, number ofsuppliers where the practices are being implemented, and how they
are implemented and monitored.

Win-win Partnership

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 Environmental Practices - Our Strategy
them.

B5.3

Description of practices used to identify environmental and social risks
Win-win Partnershipalong the supply chain, and how they are implemented and monitored.

B5.4

Description of practices used to promote environmentally preferable
products and services when selecting suppliers, and how they are
implemented and monitored.

A2.1

Direct and/or indirect energy consumption by type (e.g. electricity, gasor oil) in total (kWh in '000s) and intensity (e.g. per unit of production
volume, per facility).

Appendix: ESG Key Performance

A2.2

Water consumption in total and intensity (e.g. per unit of production
volume, per facility).

Appendix: ESG Key Performance

A2.3

Description of energy use efficiency plan(s), target(s) set and the steps
Environmental Practices - Our Strategy
taken to achieve them.

A2.4

Description of whether there is any issue in sourcing water that is fit
for purpose, plan(s) to improve water use efficiency and the results
achieved.

Environmental Practices - Our Strategy; Practicing Green
Operation (The Group’s daily business does not have theproblem of obtaining suitable water sources)

A2.5

Total packaging material used for finished products (in tonnes) andwith reference to per unit produced.

Packaging materials are not required for the finishedproducts of the group business.

B5:
Supply Chain
Management

General Disclosure Information on: (a) The policies; and (b) compliance with relevantlaws and regulations that have a significant impact on the issuer relating to healthCompliance Operation; Good Products; Good Services
and safety, advertising, labelling and privacy matters relating to products andservices provided and methods of redress.
No product or service recall events that had a significant
impact on the Group’s operations occurred during thereporting period, so it is not applicable

B6.2

Number of products and service related complaints received and how
they are dealt with.

Good Services; Appendix: ESG Key Performance

Climate Change Response; Climate-related Risk andOpportunity

B6.3

Description of practices relating to observing and protecting intellectual
Compliance Operation
property rights.

Description of the significant climate-related issues that have impacted
Climate Change Response; Climate-related Risk andand are likely to impact the Issuer, and the actions taken to manage
Opportunity
them.

B6.4

Description of quality assurance process and recall procedures.

B6.5

Description of consumer data protection and privacy policies, and how
Compliance Operation
they are implemented and monitored.

Description of the significant impacts of activities on the environment
and natural resources and the actions taken to manage them.

General Disclosure Policies on identification and mitigation to significant climaterelated issues which have impacted, and those which may impact, the issuer.
A4.1

Green Design Commitment; Advancing Green
Construction; Practicing Green Operation
Green Design Commitment; Advancing Green
Construction; Practicing Green Operation

Employment

B1.1

Total workforce by gender, employment type, age group andgeographical region.

Appendix: ESG Key Performance

B1.2

Employee turnover rate by gender, age group and geographicalregion.

B6:
Product
Responsibility

Appendix: ESG Key Performance

165

Good Products

General Disclosure Information on: (a) The policies; and (b) compliance with relevantlaws and regulations that have a significant impact on the issuer relating to bribery,Compliance Operation
extortion, fraud and money laundering.

B7:

B7.1

Number of concluded legal cases regarding corrupt practices brought
against the issuer or its employees during the reporting period and the Appendix: ESG Key Performanceoutcomes of the cases.

B7.2

Description of preventive measures and whistle-blowing procedures,and how they are implemented and monitored.

Compliance Operation

Description of anti-corruption training provided to directors and staff.

Compliance Operation; Appendix: ESG Key Performance

Anti-corruption

General Disclosure Information on: (a) The policies; and (b) compliance with relevantlaws and regulations that have a significant impact on the issuer relating to providing Striving for The Best as a Teama safe working environment and protecting employees from occupational hazards.

Development andTraining

Advancing Green Construction

Percentage of total products sold or shipped subject to recalls forsafety and health reasons.

General Disclosure Policies on minimising the issuer’s significant impacts on theenvironment and natural resources.
A3.1

Striving for The Best as a Team

B6.1

B1:

B3:

Description of steps taken to eliminate such practices when
discovered.

Total greenhouse gas emissions (in tonnes) and intensity (e.g. per unit
Appendix: ESG Key Performanceof production volume, per facility).

General Disclosure Information on: (a) The policies; and (b) compliance with
relevant laws and regulations that have a significant impact on the issuer relating to
Striving for The Best as a Team
compensation and dismissal, recruitment and promotion, working hours, rest periods,
equal opportunity, diversity, anti-discrimination, and other benefits and charity.

Health and Safety

Description of measures to review employment practices to avoid child
Striving for The Best as a Teamand forced labour.

A1.2

SocialB2:

B4.1

The types of emissions and respective emissions data.

General Disclosure Policies on the efficient use of resources, including energy, water
Green Design Commitment; Practicing Green Operationand other raw materials.

A2:

Striving for The Best as a Team

A1.1

A1:
Emissions

The emission of gaseous pollutants is not an important
category for the operation of the Group.

General Disclosure Information on: (a) The policies; and (b) compliance with
relevant laws and regulations that have a significant impact on the issuer relating topreventing child and forced labour.

Corresponding Section

B2.1

Number and rate of work-related fatalities occurred in the past three
years including the reporting year.

Appendix: ESG Key Performance

B7.3

B2.2

Lost days due to work injury.

Appendix: ESG Key Performance

B2.3

Description of occupational health and safety measures adopted, andhow they are implemented and monitored.

Striving for The Best as a Team

General Disclosure Policies on community engagement to understand the needsof the communities where the issuer operates and to ensure its activities take into
consideration the communities’ interests.

Building a Beautiful and Shared Future Home;
Sustainability Management; Shared development

B8.1

Focus areas of contribution.

Building a Beautiful and Shared Future Home;
Sustainability Management; Shared development

B8.2

Resources contributed to the focus area.

Appendix: ESG Key Performance

General Disclosure Policies on improving employees’ knowledge and skills fordischarging duties at work. Description of training activities.

Striving for The Best as a Team

B3.1

The percentage of employees trained by gender and employee
category.

Appendix: ESG Key Performance

B3.2

The average training hours completed per employee by gender andemployee category.

Appendix: ESG Key Performance

B8:
Community
Investments

166

2023 Sustainability Report

About This Report Report Summary Message Board Statement About Vanke

Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Index to SASB Indicators
Theme

EnergyManagement

Water
Management

Managementof TenantSustainability
Impacts

Climate Change
Adaptation

167

Indicator

Code

Corresponding section

Energy consumption data coverage as a percentage of total floor area, byproperty sector

IF-RE-130a.1

Appendix: ESG Key
Performance(1) Total energy consumed by portfolio area with data coverage, (2)percentage grid electricity, and (3) percentage renewable, by property sector

IF-RE-130a.2

Appendix: ESG Key
PerformanceLike-for-like percentage change in energy consumption for the portfolio areawith data coverage, by property sector

IF-RE-130a.3

Appendix: ESG Key
Performance

Percentage of eligible portfolio that (1) has an energy rating and (2) is certified
to ENERGY STAR, by property sector

IF-RE-130a.4

Green Design
Commitment

Description of how building energy management considerations are integrated
into property investment analysis and operational strategy

IF-RE-130a.5

Practicing Green
Operation

Water withdrawal data coverage as a percentage of (1) total floor area and (2)floor area in regions with High or Extremely High Baseline Water Stress, byproperty sector

IF-RE-140a.1

N/A(1) Total water withdrawn by portfolio area with data coverage and (2)percentage in regions with High or Extremely High Baseline Water Stress, byproperty sector

IF-RE-140a.2

Appendix: ESG Key
PerformanceLike-for-like percentage change in water withdrawn for portfolio area with data
coverage, by property sector

IF-RE-140a.3

Appendix: ESG Key
Performance

Description of water management risks and discussion of strategies andpractices to mitigate those risks

IF-RE-140a.4

Climate-related Risk andOpportunity; Practicing
Green Operation(1) Percentage of new leases that contain a cost recovery clause for resource
efficiency-related capital improvements and (2) associated leased floor area,by property sector

IF-RE-410a.1

Practicing Green
Operation

Percentage of tenants that are separately metered or submetered for (1) gridelectricity consumption and (2) water withdrawals, by property sector

IF-RE-410a.2

Appendix: ESG Key
Performance

Discussion of approach to measuring, incentivising, and improving
sustainability impacts of tenants

IF-RE-410a.3

Environmental
Practices– Our Strategy;
Practicing Green
Operation

Area of properties located in 100-year flood zones, by property sector

IF-RE-450a.1

N/A

Description of climate change risk exposure analysis, degree of systematic
portfolio exposure, and strategies for mitigating risks

IF-RE-450a.2

Climate-related Risk andOpportunity

168Topic of the Year Operational Practices Environmental Practices Social Practices Climate-related Risk and Opportunity Appendix

Address: V anke Center, No.33 Huanmei Road, Dameisha, Yantian District, Shenzhen,
GuangDong, P.R.CHINA 518083
Tel.: +86（755）25606666
Website: www.vanke.com
169