SUSTAINABILITY REPORT 2023

SHUI ON LAND LIMITED
Incorporated in the Cayman islands with limited liability

STOCK CODE 272

Table of Contents

CHAIRMAN’S MESSAGE

2ABOUT THIS REPORT

4

Scope and Boundaries
Endorsement and Approval
Contact and Feedback

ABOUT SHUI ON LAND

5

Our Profile and Market Presence
Our Corporate Philosophy and Culture

SUSTAINABILITY LANDSCAPE OF CHINA

82023 – AT A GLANCE

9

Performance across the 5C Pillars
Sustainability Benchmarks and Indices

APPROACH TO SUSTAINABILITY

11

Sustainability Governance
Stakeholder Engagement
Materiality
5C Sustainability Strategy – To Be a Pioneer of Sustainable Premium Urban Communities
Alignment with UN SDGs

OUR PERFORMANCE IN 2023

19

Community
Clean
CultureCare
Corporate Governance

APPENDIX

52

Climate-related Financial Disclosure
Recognition, Awards and Membership
Performance Data Summary
Content GRI Standards, HKEX ESG, SASB and IFRS Content Index
Verification Statement

SUSTAINABILITY REPORT 2023

1

CHAIRMAN’S MESSAGE

I am delighted to present our 2023 Sustainability Report, whichhighlights our commitment across the 5C pillars: Community,
Clean, Culture, Care, and Corporate Governance. Anchored by
the refreshed version of our 5C Sustainability Strategy, with
the Community pillar as our cornerstone, we are strategically
positioned to effect positive change and deliver sustainable impact.
In our ongoing battle against climate change, we have set a more
ambitious target through our allegiance to the Science Based
Targets initiative (SBTi). As the first developer from mainland
China to engage with the SBTi, our 1.5°C-aligned science-basedtargets were officially approved in July 2023. This endorsement
underscores our dedication to curbing greenhouse gas (GHG)
emissions, consistent with the Paris Agreement’s objective tocap global warming at 1.5˚C above pre-industrial levels. To thisend, we formed a strategic partnership in December 2023 with
the CLP Group to collaborate on the supply of renewable energy
to our Nanjing commercial properties. To assess and identify
the climate risk exposure of our operations, we also engaged an
external consultant to conduct a climate change physical risk
scenario analysis at the project level, for all our development sites
and assets under management.

2

SHUI ON LAND LIMITEDOur commitment as a responsible developer extends torejuvenating urban neighborhoods and fostering communities.
The opening of Shanghai Panlong Tiandi in April 2023 exemplifies
our prowess in urban regeneration. Merging the historic charm ofancient Panlong Town with contemporary commercial offerings,
this site has swiftly become a cultural beacon in the Yangtze
River Delta, drawing over a million visitors in its inaugural week.
Hong Shou Fang located in Putuo District, Shanghai, is anotherremarkable example of urban regeneration project by Shui On
Land. Originally built for textile workers in 1933, the site has beensuccessfully transformed into a bustling community that offers adiverse range of services to the neighborhood while still preserving
its historical features.

VINCENT H. S. LO
Chairman

We hold a strong conviction that our sustainability strategies should
revolve around urban regeneration, climate change adaptation
and biodiversity conservation. Therefore, Shui On Land also
actively promotes urban biodiversity conservation and continues
to integrate biodiversity considerations in our project planningand decision making. This year, we made remarkable progress insigning a Memorandum of Understanding (MoU) with The Nature
Conservancy to promote urban biodiversity conservation.
It is with great honor I report that our sustainability endeavors
have garnered acclaim on global and local stages. Xintiandi
Plaza in Shanghai received the 2023 ULI Asia Pacific Awards for
Excellence, while Shanghai Panlong Tiandi won the MIPIM Asia
Awards and obtained a Leadership in Energy and Environmental
Design (LEED) for Neighborhood Development Built Project Goldcertification, acknowledging our capability to seamlessly integratesustainability into our core operations, while successfully achieving
our environmental and social objectives. Being recognized as oneof China’s 40 most influential enterprises, as evidenced by ourposition atop the 2023 Fortune China ESG Impact List, also reflects
our unwavering commitment to sustainability.

On behalf of the Board, I would like to express sincere gratitude
to our management team and colleagues for their unwaveringcommitment and exemplary efforts. I also want to extend a special
note of appreciation to our stakeholders, business partners, andcustomers for their steadfast support and confidence in our journey.

VINCENT H. S. LO
ChairmanHong Kong, 21st March 2024

SUSTAINABILITY REPORT 2023

3

ABOUT THIS REPORTWe are delighted to present our tenth Sustainability Report (theReport) detailing our sustainability performance. This document
spans the reporting period from 1 January to 31 December 2023
for Shui On Land Limited and our three subsidiaries: Shui On
Xintiandi Ltd. (formerly China Xintiandi Co. Ltd.), Shanghai Feng
Cheng Property Management Limited, and Shui On Construction
Co. Ltd. This Report is published on 19th April 2024.
This Report adheres to local and internationally recognizedreporting frameworks. It has been prepared in accordance withthe “comply or explain” provisions of the Environmental, Social andGovernance (ESG) Reporting Guide by Hong Kong Exchanges andClearing Limited (HKEX). It references selected disclosures from the
Global Reporting Initiative (GRI) Standards 2021, addressing theCompany’s core operations and activities. It also references therecommendations of the Task Force on Climate-related Financial
Disclosures (TCFD), the Sustainability Accounting Standards Board(SASB) for Real Estate Sector Disclosure, and the International
Financial Reporting Standards (IFRS) S2 Climate-related Disclosures.
In preparing this Report, we followed the Reporting Principles
recommended by GRI and outlined in the HKEX ESG Reporting
Guide, ensuring the materiality, quantitative, balance, andconsistency of information.
The Performance Data Summary section offers a comprehensive
overview of our 2023 sustainability achievements. Standards,
methodologies, assumptions, and calculation references areprovided where relevant. Wherever practicable, we have employedconsistent methodologies in our KPI calculations, noting any
changes that might influence meaningful comparisons.
To assist readers in navigating this Report, a content index
is provided in the Appendix. This index facilitates easy accessto pertinent information concerning our sustainability-related
performance. We recommend reading this Report in conjunction
with the 2023 Annual Report, particularly the Sustainability Chapter,and the Corporate Governance and Sustainability sections on the
Shui On Land website.

4

SHUI ON LAND LIMITED

Scope and Boundaries
The scope and performance metrics detailed in this Reportfocus on areas under our operational control, as listed in the2023 Annual Report.
Recognizing the varied impacts of our material sustainability topics
on our business and stakeholders, we have delineated how eachrelates to the core components of our 5C Sustainability Strategy
and their respective areas of influence, internally, externally, orboth. Further details are available in the Materiality section.

Endorsement and Approval
The Sustainability Committee has endorsed this Report, and theBoard has granted its approval on 21st March 2024.

Contact and Feedback
We welcome your valuable feedback for our ongoing
improvement. Please direct any comments or suggestions about
our sustainability performance and this Report to sustainable
development@shuion.com.cn.

ABOUT SHUI ON LAND

2023 Economic Value Generated and Distributed

Landbank: 8.51
(total landbank GFA,
million m2)

Total employee
benefits expenses: 1,037(RMB million)

Direct economic value
generated revenue: 9,752(RMB million)

For more information about our revenue stream, and overall economic value generated and distributed, see our 2023 Annual Report.

Our Profile and Market Presence
The global economy encountered persistent challenges due to elevated inflation, high interest rates, and heightened geopolitical risks.
Although the Chinese economy has rebounded to some degree in 2023, a lack of confidence has led to a continuing downturn in theproperty market. Despite the difficult operating environment, the Group’s strategic focus on “Best-in-Class” products and services in premium
market of resilient cities, coupled with a strong branding in mixed-use communities, has positioned us well during this period of volatility.
Despite a considerable slowdown in Wuhan’s residential market in 2023, all units of Wuhan Tiandi La Riva III launched were sold on thefirst day, achieving the highest pre-sale price ever recorded in Wuhan, with an average selling price of approximately RMB64,000 per
sq.m.. Wuhan Optics Valley Innovation Tiandi has seen robust demand from end-users for its office blocks, securing the top spot in bothtransaction area and transaction value in Wuhan’s office market in 2023. The Group is well-known for its capability to provide quality
urban development solutions that align with emerging economic and social trends. Through rejuvenating cultural contents and business
innovation, we are the pioneer in creating premium and thriving communities with social experiences that bring places to life. Anothernotable addition to our portfolio, Hong Shou Fang, successfully blends traditional Shikumen architecture with modern commercial
offerings, creating a vibrant and convenient 15-minute living circle. It attracted 700,000 customers during the National Day Holiday period
and generated RMB 100 million in revenue within four months of operations.
SOL recognizes the opportunities presented by the Shanghai government’s plans for urban village transformation. By leveraging the
3-Year Urban Renewal Action Plan, we can tap into the demand for high-quality development of the property market and contribute to
the city’s revitalization efforts. Moving forward, we will remain vigilant in monitoring market risks and continue to seize new opportunities
presented by emerging trends.

Headquartered in Shanghai, Shui On Land (SOL)2 (Stock Code:272) is a leading urban solutions provider dedicated to creating
sustainable premium urban communities in China. As the flagshipproperty development entity within the Shui On Group3, we boast
an impressive legacy in urban regeneration.

As of 31 December 2023, the Group has 14 projects at different
stages of development and two asset management projects,
possessing a land bank totaling 8.5 million square meters (m2).
Additionally, we stand as one of Shanghai’s most prominent
private commercial property owners and managers, possessing
a commercial asset portfolio with a total value of RMB 84 billion
located in prime locations of Shanghai.

1 6.2 million m2 of attributable leasable and saleable area, and 2.3 million m2 for clubhouses, car parking spaces and other facilities.
2 References to “SOL”, “us”, “our” or “we” refer to Shui On Land Limited (the “Company”) and its subsidiaries and the businesses carried on by such subsidiaries, except where the context makes it clear
otherwise. References to “the Group” refer to Shui On Land Limited as well as the other companies of Shui On Group.
3 The Shui On Group was founded in 1971 and is headquartered in Shanghai. It is principally engaged in property development, construction and construction materials with interests in Hong Kong andthe Chinese Mainland.

SUSTAINABILITY REPORT 2023

5

ABOUT SHUI ON LAND

Shanghai

Shanghai
Taipingqiao

THE HUB

Rui Hong Xin Cheng Shanghai
Panlong Tiandi

KIC

Hong Shou Fang

INNO KIC

Riverville

Wuhan

Wuhan Tiandi

Wuhan
Changjiang Tiandi

Optics Valley
Innovation Tiandi

INNO Zhujiang Lu

BaizitingNanjingNanjing
International
Finance Center

6

Chongqing

FoshanChongqing Tiandi

Foshan Lingnan Tiandi

SHUI ON LAND LIMITEDABOUT SHUI ON LAND

Shui On Land is jointly owned by the Shui On Group and public shareholders, with a 100% ownership stake shared between them. We
have full ownership of four key businesses: Shui On Xintiandi Co. Ltd., Feng Cheng Property Management Ltd., Shui On Construction Co.
Ltd., and Shui On Investment Management.

Public Shareholders

Shui On Group43.77%

56.23%

Shui On
Xintiandi Ltd.

Feng Cheng
Property Management Ltd.

Shui On
Construction Co. Ltd.

Shui On
Investment Management

Shui On Land

The Company emerged as the largest Chinese real estate enterprise to be listed on the Hong Kong Stock Exchange (HKEX) in 2006. We
are also a constituent stock of the Hang Seng Composite Index, the Hang Seng Composite Industry Index – Properties and Construction,
the Hang Seng Composite SmallCap Index, the Hang Seng Stock Connect Hong Kong Index, and the Hang Seng Corporate Sustainability
Benchmark Index.
Our “Asset Light Strategy” has been instrumental in significantly expanding our asset management portfolio through establishingpartnerships with long-term investors. Since our inception, Shui On Land has been committed to caring for the environment, preserving
and rejuvenating cultural historical buildings, and building and sustaining vibrant communities.

Our Corporate Philosophy and Culture
We strive for world-class excellence in management, planning, execution, and corporate governance throughout all our operations. This
goal is realized through our collective dedication to our corporate mission, vision, and core values.

Core Values

Corporate Vision

The Shui On Spirit:
Dedication Excellence,
Innovation, Integrity.

To be a pioneer ofsustainable premium
urban communities.

SUSTAINABILITY REPORT 2023

7

SUSTAINABILITY LANDSCAPE OF CHINA

In September 2020, President Xi Jinping pledged at the 75th session of the United Nations General Assembly that China would aim forpeak carbon dioxide emissions before 2030 and achieve carbon neutrality by 2060. Following this dual carbon strategy, the Shanghai
Municipal People’s Government committed to a 70% reduction per unit of GDP in carbon emissions by 2030 from 2005 levels and to raise
the share of non-fossil energy to approximately 25% by the same year4. With the continued implementation of its “1+N” policy frameworkfor dual carbon strategy, the Chinese government has also been actively promoting international cooperation on climate change,
focusing on practical cooperation in areas including climate change adaptation, green and low-carbon initiatives, energy efficiency andcircular economy. Furthermore, the government has placed a strong emphasis on incentivizing enterprises to enhance R&D investments
to facilitate high-quality industrial transformation. China’s “14th Five-Year” Plan underscores the integration of biodiversity conservation
into the development path of ecological civilization. The country sets an ambitious target to effectively protect 30% of land and water
ecosystems by 2030, while improving the aquatic biological integrity index of the Yangtze River.
Meeting these targets necessitates a high-quality transformation within construction and real estate sectors, emphasizing green and lowcarbon initiatives. In line with China’s “14th Five-Year” Plan vision and the country’s sustainable landscape, SOL has consistently focusedon urban regeneration, reducing carbon emission, conserving natural resources and enhancing urban biodiversity during our project
design and development, and fostering industry high-quality transformation, ensuring a harmony between financial profitability andsustainable practices, mindful of social, environmental, and economic impacts. In 2023, we signed a MoU with The Nature Conservancy
to promote urban biodiversity conservation. In addition, we conducted a climate change physical risk scenario analysis at project level
for all development sites and assets under management. In recognition of our sustainability efforts, over 96% of existing assets by GFA
obtained either green or healthy building certifications.
Aligning with the national dual carbon goals, we have introduced our refreshed version of 2030 5C Sustainability Strategy. As mainland
China’s first developer to engage with the Science Based Targets initiative (SBTi), we are proud to have our near-term science-basedtargets validated by the SBTi. These targets include:

Reducing Scope 1 andScope 2 carbon emissions
intensity by 62.4% by 2030
from a 2019 base year

Reducing Scope 3 carbon
emissions intensity from purchased
goods and services by 22% by
2030 from a 2019 base year

Reducing Scope 3 carbon
emissions intensity fromdownstream leased assets by 22%
by 2030 from a 2019 base year

To achieve these SBTi-approved objectives, we plan to implement various strategies, such as initiating a Deep Green Lease Program,phasing out fossil-based company vehicles, and endorsing the utilization of renewable energy. Additionally, Shui On Xintiandi has forgeda strategic cooperation framework with the CLP Group, focusing on zero-carbon energy and green power initiatives to facilitate thecommercial real estate sector’s shift towards low-carbon energy, utilizing high-efficiency renewable energy solutions. Moving forward,
our commitment remains steadfast in reducing our carbon footprint and promoting sustainable practices across our operations throughengaging with our suppliers and tenants to reinforce the national sustainability journey.

4 The targets are outlined in the Action Plan for the Implementation of Carbon Peak in Shanghai.

8

SHUI ON LAND LIMITED2023 – AT A GLANCE
Performance across the 5C Pillars
Clean•

Obtained SBTi approval for our 1.5°C-aligned science-based targets in July 2023.

•

Conducted climate change physical risk scenario analysis at project level for all development sites and assets under management.

•

Over 96% of existing assets by GFA obtained either green or healthy building certifications5.

•

Signed a MoU with The Nature Conservancy to advance urban biodiversity conservation.

•

46% decrease in Scope 1 and 2 carbon emissions intensity from the 2019 baseline year for SXTD assets.

•

17,506 tons of waste were diverted from landfill for recycling for SXTD assets.

•

Formed a strategic partnership with the CLP Group to collaborate on the supply of green power in our commercial properties, aiming to increase our share of total electricity
consumption from renewable sources to approximately 20% in 2024.

Community

Culture•Our Deep Green Lease
Program won the RICS China
Sustainability Award.

••

97% of F&B tenants, 89%of retail tenants, and 83% ofoffice tenants by leasing area
joined our Green Pledge
program promoting lowcarbon living.

Strengthened the SOL’s
Historical Building
Preservation andRevitalization Frameworkand developed our approach
to fostering talent in the field ofhistorical building preservation
and revitalization.

•

Partnered with Tongji
University on an urban
regeneration talent development
program featuring lectures by
SOL’s Chief Sustainability Officer,
Mr. Albert Chan.

•

Enhanced our flagship“CREATORS 100” arts and culture program and the ”RanRan”
Young Artist Incubation Programin partnership with UCCA.

•

Organized 63 events to foster
community engagement.

•

Collaborated with the Well
Living Lab for a Healthy
Community study.

•

Implemented the SOL Cloud
Construction System for
ESG management in our
supply chain.

Performanceacross the

Corporate Governance5C
pillars

Care•

Extended compensation-linked sustainability KPIs to department
heads and project heads.

•

Became a signatory to the United Nations Women’s
Empowerment Principles.

•

Overhauled the Crisis Management Manual and bolstered crisis
management training for the corporate governance body.

•

Enhanced “Your Voice” employee engagement survey toencourage employees to voice out their opinions.

•Issued the largest private green-mortgage-backed onshore CMBS
Mainland China, with a total value of RMB 4.4 billion.

•

Achieved an average of 32 training hours for each employee.

•Over 11,900 volunteer hours contributed.

•

Diversified our Board by appointing the second female Independent
Non-Executive Director.

5 The assets achieving green and healthy building certification in 2023 include Shanghai Panlong Tiandi, Hong Shou Fang, Shanghai Taipingqiao Lot 132, Wuhan Tiandi Project Management Office, andWuhan Optics Valley Innovation Tiandi.

SUSTAINABILITY REPORT 2023

9

2023 – AT A GLANCE

Demonstrating our strong commitment to sustainability, we have established quantitative targets within the framework of our
5C Sustainability Strategy. We are delighted to report significant achievements in our objectives by 2030:
PillarCommunity

2030 KPIs

FY2023 Progress Towards 2030 KPIs

Achieve a satisfaction rate of more than 90% in our customer andoccupant satisfaction survey by 2030

Achieved 95% of overall customer
and occupant satisfaction in our
properties in 2023

Design and curate 100+ programs per year across ourportfolios through 2030

63 events in 2023

Support 150 innovators/start-ups through our incubation program
or entrepreneurship community by 2030

100
73.5%

Reduce Scope 1 and 2 carbon emissions intensity by 62.4% by
2030 from a 2019 base year
Reduce Scope 3 carbon emissions from purchased goods andservices by 22% by 2030 from a 2019 base year

Clean

Conducted embodied carbon analyses for
all development projects and establishedrequirements for suppliers to disclose theembodied carbon data of their materials
100%

Reduce Scope 3 carbon emissions intensity from downstream leased
assets by 22% by 2030 from a 2019 base year
80.6%

Reduce operational energy intensity by 20% by 2030 from a2019 base year

72.2%

Divert 45% of operational waste from landfill by 2030

Corporate
GovernanceAchieve an average of 40 hours of training per employee
per year by 2030

32 average hours

Achieve a cumulative of more than 150,000 volunteer hours by
2030 from 2019

197,475 accumulated volunteer
hours from 2019

100%
100%

100%

Reduce operational water intensity by 20% by 2030 from a2019 base year

Care

100%

100%
100%

Maintain 100% implementation of Code of Conduct and Business
Ethics for all employees across all business units

100%

Communicate with 100% of construction contractors andretail operation suppliers to ensure they acknowledge theimplementation of the Supplier Code of Conduct

100%

100%

100%

Sustainability Benchmarks and IndicesWe disclosed relevant data and management approaches in accordance with the requirements of major local and global sustainabilityrelated benchmarks and indices. In 2023, we are very pleased to attain remarkable results in the following benchmarks and indices.

HKQAA
AAHKQAA Sustainability
Rating and Research

AA
MSCI ESG Rating

6 The Shui On Land Core-Plus Office Venture.

10

SHUI ON LAND LIMITED

5 stars
GRESB (SCOV6 only)

ACDP (Climate Change)

Listed2023 Bloomberg
Gender Equality Index

Constituent
Hang Seng Corporate
Sustainability
Benchmark IndexAPPROACH TO SUSTAINABILITY

Sustainability Governance
Since the establishment of Shui On Land, we have strived
to become a leading urban solutions provider dedicated tocreating premium sustainable urban communities in China.
Our business approach harmonizes financial success with acommitment to sustainability, creating positive social andenvironmental impacts, as well as contributions to local andbroader economies. Sustainability is a fundamental aspectof our operations and is integral to our corporate missionof leading the development of sustainable, premium
urban communities.

APPROACH TOSUSTAINABILITY

e

So
cial

nc
rna
Gove

Our sustainability strategy fully integrates all facets of
responsible environmental, social, and governance (ESG)
practices. We adopt a philosophy that prioritizes the balance
between humans and nature when developing master-planned
communities. With a clear vision, an innovative mindset andample international experience, Shui On Land strives to be apioneer of sustainable premium urban communities.

ironmental
Env

A Statement from the Board
We recognize that robust governance fosters a culture of ethical behavior while minimizing business risk. To this end, we have established
a comprehensive corporate governance framework, internal controls, and risk management systems to ensure that our operations are
conducted with integrity. Our approach to managing and overseeing sustainability-related issues is integrated into our business strategy,
influencing how sustainability tasks are incorporated into everyday operations.

Our Sustainability Governance Structure

SOL Group Board of Directors

SOL Group
Board Sustainability Committee

SOL and SXTD
Sustainable Development
Executive Committee

Chief Sustainability Officer

SOL and SXTD
Sustainable Development
Working (5C) Teams

Sustainable
Development Department

SUSTAINABILITY REPORT 2023

11

APPROACH TO SUSTAINABILITY

The Board bears ultimate collective responsibility for effective risk management and internal control mechanisms, as well as for assessing
their efficacy in protecting our assets and shareholder interests. The Board consistently evaluates current and potential risks confronting
our business, including sustainability concerns. Through regular risk identification, analysis, and strategic review of our metrics, targets,and internal controls, the Board devises and refines measures to manage and mitigate these risks.
The implementation of our 5C Sustainability Strategy is initiated by the Board of Directors of Shui On Land Limited. We have created a
Board-level Sustainability Committee, providing direct support to the SOL Board to ensure that our 5C Sustainability Strategy is synchronizedwith our business operations.
Since 2022, we have taken a decisive step by linking sustainability-related Key Performance Indicators (KPIs) to the compensation of key
executives and sustainability team members, including the CEO, CSO, SD EXCOM, and the 5C Teams. To further entrench our dedication tosustainability in our operations and projects, in 2023, we broadened the scope of these sustainability KPIs to encompass department andproject heads. These KPIs encompass various areas including but not limited to reducing carbon emissions, ensuring employee health andsafety, fostering talent development, and promoting diversity and inclusion.
In 2023, the Sustainable Development Executive Committee (SD EXCOM), comprises Executive Directors, Senior Directors, the CEO and the
CSO, convened four times to review and update the progress of sustainability KPIs, aligning them with our refreshed version of 5C strategies.
The Committee also examined integration strategies for sustainability within our business operations and monitored the cascading of KPIs.
The CSO spearheads the integration of sustainability into the Group’s strategy and operations, while the Committee oversees andadvises on overall sustainability performance. Two Board-level Sustainability Committee meetings in 2023 focused on evaluating2022’s 5C sustainability achievements, shaping the strategic focus and KPIs for 2023, and refining our net-zero pathway and framework.
Operational implementation of specific proposals and goals is entrusted to business units and departments, which is coordinated by fivecross-departmental working teams – the 5C Teams. These teams, reporting to the SD EXCOM, convene regularly to address sustainability
matters and make informed decisions, escalating them to the Board-level committee as needed.
Each 5C Team holds responsibility for proposing, overseeing and reporting the KPIs of their respective goals, meets regularly to monitor
and coordinate implementation, and solves problems as they arise. These KPIs are disseminated to relevant departments, business units
and project managers for execution, with progress reported back to the Committee consistently.
The Sustainable Development Department assists in the formation and execution of sustainability policies and strategies, by providing
technical solutions and coordinating external and internal sustainability communications and training with relevant departments. It also
monitors the overall progress of sustainability goals of the Group in meeting its targets.
Our sustainability governance framework is indicative of the importance we place on aligning leadership and decision-making withsustainability goals. It not only oversees the strategy’s deployment across our businesses but also reinforces our objective setting andreporting processes. We view leadership in sustainability at the Board and executive levels as fundamental to weaving sustainability
management and performance into our corporate fabric, operational practices, and business relationships.
Our progress in 2023 for each 5C pillar was overseen by the Sustainable Development Executive Committee. Collaborative efforts with
Business Development and Project teams, alongside the Development Planning and Design, Project Management and Asset Management(including Leasing and Operations departments) enabled us to achieve our targets by 2023.
Discover more about how sustainability is integrated at SOL in the Corporate Governance section of this Report.

12

SHUI ON LAND LIMITEDAPPROACH TO SUSTAINABILITY

Stakeholder Engagement
At Shui On Land, we are dedicated to consistently engaging with stakeholders about sustainability. Our engagements extend beyond
reporting and include active two-way communication, responding to stakeholders’ expectations, and incorporating their feedback directly
into our strategic planning. This collaborative approach underpins our sustainable business growth.
We have identified eight key stakeholder groups that significantly impact, or are impacted by, our performance.
Our Key Stakeholders

Communication Channels

The Value of Our Relationship

Government andregulatory authorities• Press release• Social media• Conferences, meetingsand site visits• Joint projects• Working committees
and consultations• The Proposal of theMembers of the CPPCC• Face-to-face meetings

National policies on environment and land acquisition
significantly influence our operational approach and futurebusiness strategies. Good cooperation with government
entities at all levels is crucial for our business success and the
expansion of our sustainability initiatives.

Shareholders• Events• Corporate website and newsletter• Regular meetings and interviews

Strong sustainability performance is attractive to shareholders
who are focused on creating long-term value. We actively
listen to our shareholders to align our interests and ensure aresilient, future-oriented business.

Tenants and Customers• Surveys• Customer service
mobile applications• Community events• Joint projects

Tenants and customers drive our commitment to providing
sustainable and ethical services. Their engagement insustainability bolsters loyalty, service quality, and our brandimage. We prioritize understanding and meeting their needs
to adapt to their changing preferences.

Investment partners• Sustainability
benchmarks and indices• Interviews and meetings• Newsletters• Events• Investor day

Investors scrutinize our sustainability performance and impact.
Understanding the concerns of our investment partners, who
co-own assets with us, is vital for alignment and cooperation.

Co-developers• Industry events• Joint projects• Multi-stakeholder meetings,
seminars, and conferences• Project meetings

Our engagement with co-developers is rooted in sharedcommitment to sustainability and innovation, driving us
towards collective vision for a better built environment.
Together, we commit to advancing sustainable development,leveraging our collaboration to overcome challenges andfoster mutual success.

Suppliers
and Contractors• Annual supplier meeting• Project meetings and briefings• Supplier screening
and assessments• Joint projects• Surveys• Forums

Our supply chain’s environmental and social impacts are
significant. Integrating suppliers and contractors into our 5C
Sustainability Strategy creates shared value and amplifies oursustainable impact. Collaborating on sustainability goals is key
to our strategy’s success.

SUSTAINABILITY REPORT 2023

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APPROACH TO SUSTAINABILITY

Our Key Stakeholders

Communication Channels

The Value of Our Relationship

Employees• Townhall meetings• Management annual meeting/project regular meeting• Executive face-to-face events• Training sessions• Forums• Surveys and interviews

Our employees are at the heart of our operations and essential
to the 5C Sustainability Strategy. Listening to their concerns,
needs, and ideas is imperative to attract and retain top talentand fulfill our sustainability goals.

Society and the public• Press release• Social media• Corporate advertisements• Company website• Sustainability reports

Maintaining a positive public image and community license tooperate is essential for achieving our sustainability goals. We
engage with the public to address their concerns and fulfill
our corporate vision and mission.

Media• Corporate website• Press release• Interviews

We engage with media to promote awareness of sustainability
and communicate SOL’s green initiatives, leveraging
mainstream news and information channels.

In developing our 5C Sustainability Strategy in 2023, we sought a deeper comprehension of our key sustainability topics and learned
from industry best practices and trends, supplementing our routine stakeholder activities.
During the year, we connected with diverse groups, including employees, investors, suppliers, and the media, to gather their perspectives onmaterial sustainability issues, ensuring their insights shape our strategy. We conducted 15 face-to-face interviews with internal stakeholders
and an online survey engaging both internal and external stakeholder groups. These engagements have been pivotal in understanding
perceptions of our 5C Sustainability Strategy and identifying opportunities for SOL to enhance investor appeal and mitigate future risks.
The formal responsibility for stakeholder engagement on sustainability lies with the Board-level Sustainability Committee. Additionally,various departments receive ongoing stakeholder feedback, systematically elevating relevant issues through the 5C and Communications
teams to the Sustainability Committee and the Sustainable Development Executive Committee as needed. The Sustainability Committee
advises the Board as necessary.
An independent consultant was employed to assist with the stakeholder engagement survey and interviews, along with a materiality
assessment, to refine the prioritization of sustainability topics. This process included consideration of sustainability trends, international
reporting standards, stakeholder expectations, and opinions on our sustainability performance and strategy, all in the context of ShuiOn Land’s business operations.

14

SHUI ON LAND LIMITEDAPPROACH TO SUSTAINABILITY

Materiality
The materiality assessment process is crucial in identifying and prioritizing sustainability topics that are significant to the Company’s
operations, development, and stakeholders. Below is a summary of our approach:

Step 1: Identification   

Step 2: Prioritization• Solicited stakeholder feedback to gain
perspectives on sustainability topics
with the greatest influence on theenvironment, people, and economy.

• Reviewed the previous year’s material
topics for Shui On Land, consulted
international reporting frameworks,
market best practices, and relevant
sustainability trends.

   

Step 3: Validation• The Sustainable Development
Executive Committee reviewed andvalidated the list of material topics forreporting and strategic development.

• Conducted benchmarking analysis
to understand peers’ disclosure
practices, informing our prioritizationof sustainability topics.

• Identified and defined the initial list of
material issues.

Materiality Matrix
We have defined the concept of materiality as encompassing “factors that are considered significant to the continuity and growth of
our company, as well as important to our stakeholders”. The matrix presents material sustainability topics prioritized based on theirimpact on stakeholder assessments and decisions, as well as their economic, environmental, and social significance, incorporating slightadjustments for industry trends, which allows the precise identification of crucial areas and resource allocation to effectively support thebusiness strategies of the Group. In line with the latest industry trends and SOL’s 5C Sustainability Strategy, we have introduced three
new material topics: “Biodiversity,” “Tenant and Customer Engagement,” and “Community Investment.”

25

Significance to Stakeholders

9

16

23

24
1
10

13

Culture8. Master Planning

14. Creative
Expression

3. Green Energy

4
22

12

Community

1. Green and Healthy
Buildings
2. Energy Efficiency andEmission Management

26

19

Clean

8

4. Climate Change
Mitigation and
Adaptation
5. Waste Management
6. Water Conservation
7. Biodiversity

17
5
21
20

7
14
15

11
Significance to Business

10. Tenant and Customer
Wellbeing and Safety
11. Tenant and Customer
Engagement
12. Contribute toLocal Economic
Development

15. International
Cultural Exchange
16. Heritage
Conservationand Urban
Regeneration
17. Local and Rural
Revitalization

13. Community
Investment

2

18

6

9. Innovation and
Entrepreneurship

3

Care

Corporate Governance

18. Talent Attraction, Retention andDevelopment

22. Value Chain Management andEngagement

19. Occupational Health and Safety

23. Business Ethics and Anti-corruption

20. Diversity and Equal
Opportunities

24. Risk Management

21. Employee Wellbeing

25. Cyber Security and Data Privacy
26. Product/Service Quality andResponsibility

SUSTAINABILITY REPORT 2023

15

APPROACH TO SUSTAINABILITY

5C Sustainability Strategy –To Be a Pioneer of Sustainable Premium Urban Communities
Throughout our history, we have committed to environmental care, cultural heritage
preservation, and fostering vibrant communities. We value our colleagues, partners,
and stakeholders deeply, always striving to enhance our governance standards. In
2020, we introduced our 10-year 5C Sustainability Strategy, which comprises five corepillars: Community, Clean, Culture, Care, and Corporate Governance, expanding ourcommitment beyond the traditional ESG framework.
Taking into account of the findings of the Strategy review conducted in 2022, welaunched a refreshed version of our 5C Sustainability Strategy in 2023, with restructuringof the “Community” pillar to be the central focus, which aligns with our vision to be apioneer of sustainable premium urban communities. By placing community centricity
at the heart of our sustainability efforts, we foster its integration with the other strategicpillars across all aspects of SOL operations. This Strategy outlines a comprehensive
roadmap to effectively accomplish our sustainability goals by 2030. It delineates clear
and measurable targets for the short, mid, and long term across each of the 5C pillar.

Care

Clean

Community

Corporate
Governance

CultureCommunity
Ambition: A neighborhood grows sustainably as it matures. And a network of people with a clear sense of belonging,
and wellbeing.
Priorities: Master planning and development • Community wellbeing and spirit • Vibrancy • Sustainable lifestyles and work solutions • Smart andsustainable technology integration

Clean
Ambition: Advance our pathway towards net zero carbon. Embed wellness, efficiency, resource circularity and climate
resilience in all places and communities we create and manage.
Priorities: Decarbonization • Climate change adaptation • Biodiversity • Healthy communities and buildings • Resource management and circularity

CultureAmbition: Demonstrate leadership in conserving, revitalizing and enhancing local culture that enriches cultural vibrancy,
authenticity, diversity and creativity of our communities.
Priorities: Local culture revitalization and enhancement • Local creativity and creator • Cultural exchange

Care
Ambition: Build a safe, healthy and inclusive environment that enhances the wellbeing and holistic development of ouremployees, and for our employees to be able to collectively contribute to society.
Priorities: Talent development • Wellbeing, health and safety • Diversity and inclusion • Shared value for society

Corporate Governance
Ambition: Become a trusted partner for all stakeholders by ensuring the highest standard of business ethics and risk management.
Priorities: Sustainability governance and transparency • Emergency preparations and risk mitigation • Highest standard of integrity in our business operation andsupply chain

16

SHUI ON LAND LIMITEDAPPROACH TO SUSTAINABILITY

Alignment with UN SDGs
Our 5C Sustainability Strategy contributes to the UN SDGs, with our sustainability goals and KPIs
aligning with specific targets and indicators. These also assist us in measuring our progress inaddressing critical sustainability issues.

Community
11.6 / 11.7
Focusing on air quality and waste management to mitigate cities’ adverse environmental effects and providing universal
access to safe, inclusive, and accessible green public spaces.
12.2 / 12.8
Advancing sustainable management and efficient resource use in building and procurement and disseminating
sustainable development knowledge and lifestyles within our community and supply chain.

Clean
3.9
Reducing illnesses from hazardous chemicals, air, water, and soil pollution and contamination – by ensuring quality air
in our developments through continuous monitoring and purification.
6.4
Enhancing water-use efficiency by upgrading our facilities.

9.4
Increasing resource-use efficiency to cut our CO2 emissions by upgrading our facilities.
12.5
Innovating waste and recycling practices to significantly lower waste generation via prevention, reduction,
recycling, and reuse.
13
Boosting resilience and adaptive capacity to climate-related hazards and natural disasters by preparing for emergencies
and reducing carbon emissions.
17.7
Engaging in public-private and civil society partnerships to promote sustainable building practices.

SUSTAINABILITY REPORT 2023

17

APPROACH TO SUSTAINABILITY

Culture11.4
Enhancing efforts to protect and preserve cultural and natural heritage through the conservation and revitalization ofcultural and historic sites.
17.17
Supporting public-private and civil society partnerships to preserve cultural heritage.

Care
5.5
Creating more opportunities for women in management positions within our organization.

8.8
Complying with local labor rights regulations and fostering a safe and secure working environment for all employees.

16.b
Implementing and advocating non-discriminatory policies to prevent discrimination or harassment among our employees.

Corporate Governance
12.6
Embracing sustainable practices and incorporating sustainability information into our reporting cycles.

16.5
Strengthening corporate governance to eliminate corruption and bribery in all forms.

18

SHUI ON LAND LIMITEDOUR PERFORMANCE IN 2023
Implemented the

SOL CloudConstruction System

Collaborated with theWell Living Lab for a

HealthyCommunity study

for ESG management in our supply chain

Community
2023 Highlights

Our Deep Green Lease
Program won the

RICS China
Sustainability
Award

Shui On Land is dedicated to fostering communities that are vibrantboth now and in the future. Aiming to lead in master-planning andcultivating innovative, entrepreneurial ecosystems, we addresscommunity needs while integrating health and sustainability into
our services. At the same time, we strive to uphold industry bestpractices for safety and wellbeing, and engage our stakeholders
and partners in our sustainability efforts.
Our refreshed version of 5C Sustainability Strategy and 2030
ambitions underscore our focus on community as a strategic
priority, envisioning economically and emotionally enriching,

97% of F&B tenants,
89% of retail tenants,
and 83% of officetenants joined our Green
Pledge program promoting
low-carbon living

diverse, and self-evolving communities. Relevant details can befound in the Community section of our company website. We
initiated a comprehensive research endeavor in 2023 to define
the concept of “Shui On communities” and evaluate our strengths
while analyzing market trends in sustainable master-planning.
Drawing on collaboration between the 5C Teams, Sustainable
Development Department, and other units, we are dedicated tocontinuously refining our community-centric business strategies
and practices, thereby enhancing our competitive advantage
within the real estate sector.

SUSTAINABILITY REPORT 2023

19

OUR PERFORMANCE IN 2023 – COMMUNITY

Master Planning and Development
Since Shui On Land’s establishment, our commitment to being
industry leaders in master planning has been unwavering, as we aim
to be a pioneer of sustainable premium urban communities. Our
master-planning ensures inclusiveness, vibrancy, and a high qualityof life, supporting the belief that a sustainable urban community
is a place for people to live, grow, and realize their values.
With a clear vision, innovative mindset, and extensive international
experience, our master-plan approach – guided by the Nine
Principles of Sustainable Urban Development of Shui On Land –has enabled us to create large-scale, mixed-use sustainablecommunities. Our projects not only embrace and enhance
local historic and cultural characteristics but also align with thedevelopmental aspirations of local governments in China. Our

design concepts that prioritize the balance between humans andnature, coupled with an exceptional development and operational
track record, have allowed us to harmoniously integrate diverse
elements such as “Live-Work-Learn-Play,” fostering vibrant,
integrated communities that revitalize urban areas and provide
regeneration solutions.
In 2023, we advanced our workflow for sustainability in community
master planning and development strategies. To ensure sustainablecommunity growth, each project begins with a master plan that
includes sustainability goals for individual lots from the planningphase. By the end of 2023, all our new community development
projects were pursuing green and healthy dual certifications.

Building Changjiang Tiandi into a World-Class Resilient Riverside Park through Master Planning
Changjiang Tiandi is a 1.6km riverside cultural park along the Yangtze River in Wuhan. Designed to be an international community, it
preserves local culture while meeting global sustainability, health, and safety standards. The project adopts a comprehensive approachto sustainable planning, spanning the lifecycle from planning to construction and operation. As a leader in master planning, our goal isto establish a world-class riverside community that is ecologically resilient, low-carbon, healthy, and a vibrant multicultural urban brand.
The master planning of Changjiang Tiandi focuses on three core visions: developing a world-class waterfront with resilient ecology,
establishing a low-carbon, healthy, inclusive international community model, and creating a vibrant and diverse city brand that celebrates
multiculturalism and renewal. We employ diverse greening methods to ensure extensive green coverage, enhance biodiversity, and createa pristine ecological habitat along the Yangtze River. The riverside cultural park within Changjiang Tiandi will undergo SITES certification,
which is expected to achieve gold-level certification, recognizing our dedication to creating sustainable landscapes.
Changjiang Tiandi is also designed to be a net-zero readycommunity and withstand certain physical climate risks
including flooding. To this end, we have elevated thestreet level of our development by 4m, enabled reductionof one level of basement parking, designed submerging
of cultural park segments as a buffer zone, and diverted
a main traffic road towards the city centre to expand thecultural park for enhancing our customers’ and citizens’
experience at the park and riverfront promenade.
Our aim extends to making Changjiang Tiandi China’s
largest Gold Certified Healthy Community, setting thehighest standards for wellbeing. It targets to becomea triple-certified community that champions green
practices, low-carbon efforts, and promotes a healthy
lifestyle, with 100% of buildings certified as green andhealthy. The community also values inclusiveness,
including being senior and pet-friendly. Looking ahead,
we seek to earn distinguished certifications such as LEED
Neighborhood Development Gold and China Healthy
Community Gold, further accentuating the sustainable,
health-oriented characteristics of Changjiang Tiandi.

20

SHUI ON LAND LIMITEDThe overview of Changjiang Tiandi

OUR PERFORMANCE IN 2023 – COMMUNITY

Community Wellbeing and Spirit
As China’s socio-economic fabric and development rapidly
evolve, the importance of community wellbeing and spirit infostering a vibrant, thriving society is increasingly recognized.
In our pursuit of nurturing healthy urban communities, Shui On
Land partnered with the Well Living Lab in 2023 to investigate
how community development and operations impact resident
health and wellbeing, as well as define the meaning of healthy
communities. Drawing from over a thousand survey participants
and referencing the WELL Community Standard, this collaborative
research seeks to understand the influence of design, planning,and management on community health. Shui On Land has
been committed to the development and operation of green
and healthy communities, which coincides with the researchphilosophy of the Well Living Lab. We anticipate publishing the
research report in 2024, in partnership with the Well Living Lab.

Inclusiveness is at the heart of our strategy for community health.
Shui On Land is dedicated to meeting the diverse needs andabilities of all individuals, creating spaces where everyone feels
a sense of belonging, support, and shared identity. In 2024, we
will craft an Inclusiveness Policy, focusing on key demographic
categories: the elderly, mothers with infants, children, people
with disabilities, and pet owners. Our developments now featureinclusive amenities such as nursery rooms and pet-friendly facilities
in addition to wheelchair-accessible restrooms and ramps,
enhancing comfort and convenience for the members of ourcommunities. We engage with our customers through regularsurveys, gathering valuable insights into their needs and feedbackon the accessibility and inclusivity of our properties. This customercentric approach helps us fine-tune our facilities and consider
additional enhancements where needed.

Case Study: Hall of the Sun Upgraded Pet-friendly Facilities
Hall of the Sun, sprawling over 180,000 square meters in the North Bund of Hongkou District, stands as a “new urban vitality hub.” It integrates
community elements like Play Social, Pet Social, Sports Social, and Foodie Social to enhance the social experience for visitors. Targeting
diverse consumer groups, Hall of the Sun delivers a unique lifestyle experience via its community operations and themed environments.
Acknowledging the pet industry’s growth and the increase inurban pet ownership, Hall of the Sun has upgraded its facilities toaccommodate pet owners. The complex now includes pet-friendly
walkways and parking spaces, ensuring that visitors with pets canaccess the area with ease.
A dedicated pet area within Hall of the Sun provides various
services and acts as a social hub for pet enthusiasts. This petzone features retail outlets for pet supplies, grooming, training
programs, and boarding services. In addition, Hall of the Sun
frequently hosts pet-themed events and charity functions tocultivate a vibrant, pet-friendly community.

The first pet-friendly store at the Hall of the Sun

SUSTAINABILITY REPORT 2023

21

OUR PERFORMANCE IN 2023 – COMMUNITY

Vibrancy
Creating a vibrant and engaging community necessitates a harmonious balance between the physical environment and its residents.
We are committed to this balance as it is crucial for fostering a thriving community. By crafting welcoming and well-designed spaces,
we aim to create an environment that promotes interaction, collaboration, and a sense of belonging among community members. We
understand that the vibrancy of a community is not solely determined by its infrastructure but also by the individuals who infuse thesespaces with life and dynamism. To enhance community spirit and engagement, we have implemented a comprehensive Corporate
Social Responsibility (CSR) program across our portfolio. Our initiative, Play Social, in collaboration with the Shanghai Historic Building
Conservation Institute, has brought nationally recognized architects to lead children on exploratory tours of historical urban buildings.
The goal is to foster reflection, deepen the understanding of local culture and history, and highlight the significance of cultural heritagein urban regeneration. This also serves to reinforce the children’s connection with their local community.

Guided tours of historical urban buildings for young explorers

We focus on integrating design concepts that are innovative andprioritize the balance between humans and nature with our provendevelopment and operational expertise. Supporting this approach,we partnered with the Shanghai Academy of Social Science’s Instituteof Literature to publish the “Shui On Community Development
Report” in 2023. Utilizing interdisciplinary research methods, wehave refined the indicators of community excellence and analyzed
several Shui On Land communities to illuminate the constructionand evolution of sustainable premium urban environments.

In collaboration with the Shanghai Academy of Social Sciences, we
also published the “Shui On Community Influence Report” in 2022,
detailing how our 5C Sustainability Strategy aligns with communityand cultural development. The English version celebrated the20th anniversary of our Knowledge and Innovation Community(KIC) in 2023, a city-core initiative designed to nurture a Silicon
Valley-esque ecosystem for technology and entrepreneurship,
while also creating a knowledge-driven “Work-Live-Learn-Play”
community, inspired by Paris’s Left Bank.
The initial phase of the “Study on Public Space in Shui On
Community” concluded successfully in 2023, establishing acomprehensive mechanism for the development and managementof public spaces. This is vital to improving construction andoperational quality, encouraging healthy and diverse lifestyles
within the community. Public spaces are pivotal for community
development and are integral to its functionality, ultimately
bolstering the distinctive qualities and core competitiveness of
Shui On Land communities.

We published the “Shui On
Community Development
Report” in 2023

22

SHUI ON LAND LIMITEDOUR PERFORMANCE IN 2023 – COMMUNITY

Spotlight: Hong Shou Fang
Located in Shanghai’s Putuo District, Hong Shou Fang is a newurban regeneration project developed by Shui On Land. The
project spans an overall construction area of approximately 85,000
square meters, includes two Grade A office buildings (covering
around 48,000 square meters) and a marketplace, internal plazas
and public promenades that merges the old with the new. Drawing
on more than 20 years of urban regeneration experience, SOL
is committed to preserving the historical and cultural context
of Hong Shou Fang while enhancing its integration with thesurrounding community, creating a vibrant center for the Chang
Shou Lu community.
In the past, Hong Shou Fang was known as “Da Zi Ming Zhong
Market” among older generations of Shanghai residents. To
revive the “hustle and bustle” of the old marketplace and bringit back to modern viability, Hong Shou Fang has created Foodie
Social 3.0, which aims to break down the traditional barriers of amarketplace and attract consumers from different generations
and backgrounds.
The project restored and adapted elements from the original
marketplace. In the central area, the Hong Shou Fang Foodie

Social spans nearly 5,000 square meters with a 12-meter-highopening skylight and a bright, spacious two-story structure.
In the past, markets mainly relied on large skylights andelectric fans for air circulation, ensuring better preservationof vegetables while allowing sunlight and wind to enter. This
design draws on the architectural wisdom of marketplace fromthe 19th century, and the large overhead fans evoke a senseof tradition. Neighboring the marketplace features an open-air
courtyard with a charming fountain. Families can enjoy quality
time together as children play with water and their pets, whileparents unwind at the outdoor café, sipping on coffee and drinks.
As a responsible community developer, we are dedicated tobuilding strong connections with the local community andresidents. We partnered with a local market to promote affordable
food products, thereby fostering a reciprocal relationship withthe residents and strengthening Hong Shou Fang’s community
integration. In addition, Hong Shou Fang is a children and petfriendly commercial zone.
Embodying our 5C Sustainability Strategy, which revolves aroundthe community, SOL is dedicated to creating affordable commercial
properties that provide convenience, accessibility, and a diverse
array of services to the local community.

The market (left) and plaza (right) of Hong Shou Fang

SUSTAINABILITY REPORT 2023

23

OUR PERFORMANCE IN 2023 – COMMUNITY

Sustainable Lifestyles and Work
Solutions
Our live-work-play-learn community concept is crafted to unite
communities, fostering connections and promoting shared wellbeing. We acknowledge the importance of tenants, customers,
suppliers, and stakeholders in creating sustainable lifestyles. Ourcommitment to quality building services, after-sales support, and afocus on health and safety has established trust across our portfolio.
We aim to integrate health and sustainability into the community
experience by ensuring tenant and customer wellbeing.

Tenant and Customer Wellbeing and
SafetyOur customer-service culture prioritizes understanding andresponding to customer needs and improving the customer
experience. Ensuring the wellbeing and safety of everyone whointeracts with our developments is paramount. We provide healthy,
comfortable, and eco-friendly services, upheld by rigorous internal
quality standards. Under the management of our ISO 9001 certified
subsidiary, Feng Cheng Property Management, we ensure that
all of our properties meet stringent compliance standards andconsistently achieve high levels of customer satisfaction.
We engage with tenants and customers through various
communication channels, including emails, meetings, newsletters,
and social media, to cater to their needs. Regular questionnaires
measure satisfaction levels, and comprehensive complainthandling guidelines ensure timely and effective issue resolution.
To bolster wellbeing and safety, we offer specialized training inquality control and product safety annually for all employees
including full-time employees and part-time employees if any.

Our Deep Green Lease Program won the“Carbon Neutrality Excellence Award” at theGreen Zero-carbon Festival

Our Deep Green Lease Program won the
RICS China Sustainability Award

This year, Shui On WORKX also partnered with Industrial Bank
Shanghai Branch to introduce “GO 4 GREEN,” a trailblazing green
financing program aimed at office sustainability in China. The
program seeks to unite property owners, tenants, and financial
institutions to support the eco-friendly transition of our commercial
spaces, assisting in various processes like office renovations. “GO4 GREEN” is expected to inspire further innovative collaborations
and bolster the evolution of low-carbon urban environments.

Tenant Engagement
We forge long-term partnerships with tenants, aiding them in weaving
sustainability into their operations. By regularly collecting and analyzing
tenant feedback, we tailor our services to better meet their needs.
We signed the industry’s pioneering Deep Green Lease with the U.S.
Green Building Council last year, with the aim to provide sustainable
innovation solutions for commercial tenants including adding
financial incentive clauses to link tenants’ energy consumption
with their property management fee. Since signing the Deep Green
Lease, we have focused on delivering tailored, value-added services
to tenants, garnering positive feedback and interest. Progressing
from last year, we expanded our sustainability strategies regarding
waste reduction, community service engagement, and resource
circularity to our existing and new prominent clients, including
the U.S. Green Building Council (USGBC) and Dell EMC under Dell
Technologies, covering the “full lifecycle” of urban development.
We are pleased that our Deep Green Lease program was honoredwith the “Sustainability Achievement of the Year” at the RICS
Awards China 2023 in Shanghai and the “2023 Carbon Neutrality
Excellence Award” at the Green Zero-carbon Festival.

24

SHUI ON LAND LIMITEDOur Green Pledge, initiated in 2021, promotes low carbon living
and environmental responsibility among tenants and suppliers.
It encourages office and retail tenants to minimize waste, reduce
electricity and water consumption, as well as offers “Green menus”
with healthy, plant-based options. By 2023, the Green Pledge wassigned by 97% of F&B tenants, 89% of retail tenants, and 83% ofoffice tenants by leasing area, achieving a 16% increase of tenants
on average compared to 2022. In 2023, we continued with theprogram where over 800 F&B tenants participated in the Green
Menu initiative during the Xintiandi Restaurant Week. We also
launched The Green Mini Program via iTiandi platform to recognize
and increase visibility for Green Pledge participants, facilitating
customer engagement with sustainable practices. Throughthese initiatives, we continue to promote sustainable living andenhance the urban lifestyle of our community, demonstrating
our commitment to the environment and the wellbeing of
all stakeholders.

OUR PERFORMANCE IN 2023 – COMMUNITY

Shui On Xintiandi Fosters “Green Heart
Community” for Sustainable Development
SOL is dedicated to developing sustainable districts and actively
involves stakeholders in community growth. In June 2023, our
Xintiandi membership platform iTiandi unveiled the “GreenHeart Community” to energize eco-friendly initiatives. Members
adopt six green practices – pedestrian commuting, eco-friendly
purchases, clearing plates to avoid food waste, using personal cups,
new energy vehicle parking, and code-sweeping check-ins – toaccumulate “green reward points” and track their carbon savings.

Xintiandi Restaurant Week
A staple since 2016, Xintiandi Restaurant Week has become agastronomic highlight, aligning with our 5C strategy for sustainable,
high-quality offerings. This year, in collaboration with Shanghai
WOW!, we introduced the inaugural Xintiandi Green RestaurantAwards. Expert judges assess restaurants across six criteria: ecofriendly operations, organic ingredients, supply chain safety,
sustainable utensils, green services, and creative eco initiatives.
Four prestigious accolades – highlighting the year’s top green
eateries in Xintiandi – are awarded, complemented by public online
voting for the most popular eco-conscious restaurant brands.

The program boosts customer-community ties and strengthens
merchant partnerships by organizing activities and rewarding
sustainable actions, nurturing a green-minded culture. Our mission
is to make cities more sustainable and engage the public in
working together towards a greener future for the city.

“Re-Pizza”“Re-Pizza,” a sustainable culinary effort by Shui On Xintiandi,champions “Zero Waste” and resource preservation. The initiative
repurposes surplus food from local businesses into pizzas, offeredto patrons for 5 RMB per slice. Sales support charitable causes. ShuiOn is committed to perpetuating “Zero Waste” via food sharing
and hunger relief, reinforcing our commitment to sustainabledaily operations.

SUSTAINABILITY REPORT 2023

25

OUR PERFORMANCE IN 2023 – COMMUNITY

Supplier Collaboration
We collaborate with over 5,580 suppliers, including construction
contractors, professional consultants, and various service providers.
Our suppliers are crucial to our operations, providing essential services
like security, cleaning, planting, specialized equipment maintenance,and construction. They contribute significantly to the developmentof quality projects and the delivery of superior customer services.
We have established rigorous selection and evaluation criteria for our
suppliers, including professional certifications as well as thoroughassessments of social, environmental, and quality performance,complemented by on-site office and site inspections. For ourtier 1 strategic suppliers, we have set sustainability KPIs including
sourcing low-carbon steel and concrete, and required them toselect their lower-tier contractors based on these benchmarks. The
Health, Safety and Environment Handbook delineates our social andenvironmental standards and serves as a guideline in our selection
process. Furthermore, a comprehensive evaluation system has
been introduced since 2013 to assist suppliers in aligning with oursustainability criteria. Generally, compliance with clauses of our Codeof Conduct and Business Ethics is mandatory for our suppliers andis incorporated into all relevant service agreements/contracts as astandard clause. However, we may consider alternative standards if
the counterparty has an equally or more rigorous code, instead ofstrictly adhering to our specific wording. To reinforce ethical practices,
the Supplier Code of Conduct is appended to contracts related toconstruction. Additionally, adherence to our Sustainability Supplierand Procurement Policy, established in 2021, which includes TypeI environmental labeling, is mandatory in bidding and contract
documentation.
We conduct regular training for strategic and main contractor
suppliers to ensure they comprehend our standards and possess
the necessary knowledge on sustainability. First initiated last year, weagain convened the annual Supplier and Contractor Forum in 2023,
gathering all strategic suppliers and main contractors. The forum
included training sessions on our Code of Conduct and Business
Ethics, quality assurance standards, and seminars promoting theGroup’s sustainability vision and 5C Sustainability Strategy. We
assess our project contractors and suppliers quarterly, and all havemet our performance benchmarks. By nurturing robust relationships
with our suppliers and partners, we encourage them to operate inharmony with our values and sustainability expectations.

SOL Cloud Construction System for Supplier ESG Management
In 2023, SOL launched a digital management system designed to streamline ESG (Environmental, Social, and Governance) data collection
within the construction sector. This Cloud App gathers monthly supplier metrics on water and energy use, air quality, workforce attendance,and safety and educational training.
Our approach emphasizes collaborative efforts with
suppliers to meet ESG standards for construction
management. Upcoming measures, set to be revealedby year-end, are geared towards elevating sustainability,
social accountability, and governance across our projects.
Through the continuous monitoring and analysis of realtime data, we pinpoint energy inefficiencies and safety risks,bolstering environmental and social governance within ourconstruction endeavors.

26

SHUI ON LAND LIMITEDOUR PERFORMANCE IN 2023 – COMMUNITY

Smart and Sustainable Technology Integration
We recognize the importance of innovation in tackling crucial social and environmental challenges. To strengthen the innovation andentrepreneurial ecosystem within our communities, we support local innovators and entrepreneurs through various platforms. Our goal is to
evolve into a comprehensive one-stop hub for start-ups with work-live-learn-play goals, and in 2023, we have made strides with initiatives such as:•

InnoSpace offering space and ecosystem support to over
50 enterprises, with initiatives like the 10 x 10 sustainable
challenge to incubate start-ups aimed at addressing key
sustainability issues.

•

RayVC platform, backing and investing in more than
100 start-ups, including those concentrated on Web
3.0 and PropTech.

•

SXTD, in conjunction with RayVC, launching the Urban
Lab 3.0 program, a collaborative innovation project with
JLL, Swire Properties, Goodman Asia, and Saint Gobain,
to identify, incubate, and invest in more than 40 start-ups
dedicated to a sustainable urban future.

•

Investing in over 10 new projects that focus on sustainability
for future cities.

Sustainable Technology Integration Highlights in 2023:
Smart Gardening in Shanghai Panlong
Tiandi Project“Sustainable Innovation Lab” Partnershipwith HKUST (Shenzhen)

The Shanghai Panlong Tiandi project faced challenges with turf
and ground cover health, characterized by yellowing and sparsegrowth. To address these issues, we introduced Smart Gardening
technology. Seasonal grass seed replanting, mowing robots, andautomatic sprinkler systems have all contributed to the turf’s
revitalization and improved ground cover. The project showcases
our commitment to continuous improvement, with a focus on
the re-greening of turf, replanting of ground cover, and tree pest
management. The utilization of artificial intelligence (AI) and otherdigital equipment, such as grass-cutting robots and smart sprinkler
systems, has reduced labor costs, increased efficiency, and cut
down on energy and water waste.

SOL is committed to fostering industry connections and nurturing
an innovative ecosystem. In 2023, our industrial innovation
platform, InnoSpace, joined forces with the HKUST Shenzhen-Hong
Kong Innovation Institute to launch the “Sustainable Innovation
Lab”. This collaboration combines HKUST’s academic expertisewith SXTD’s InnoSpace resources to focus on research andindustrial applications in sustainability. We aim to translate HKUST’stechnological advancements in green sectors into innovative
solutions for the industry. The lab’s research areas include
nanomaterial insulation, building energy systems, embodied
carbon emissions, and intelligent grid system monitoring, which
contribute to advancing green development and sustainability.

SUSTAINABILITY REPORT 2023

27

OUR PERFORMANCE IN 2023 – CLEAN
Conducted climate change physical risk

Obtained SBTi approval for our

1.5°C

aligned science-based targets in July 2023

Over

96% of existing

assets by GFA obtained either

scenario analysis
at project level for all development sites andassets under management

Clean
2023 Highlights

green or healthy building
certifications7

Signed a MoU with

The Nature
Conservancy

to advance urban

biodiversity conservation

46%

Formed a strategic partnershipdecrease in Scope 1

and 2 carbon emissions intensitywith the CLP Group to

from the baseline year 2019

collaborate on the supply ofgreen powerfor SXTD assets

in our commercial properties,

aiming to increase our share of

17,506 tons of waste

are diverted from landfill for recycling
for SXTD assets

total electricity consumption
from renewable sources toapproximately

20% in 2024

Green Building Certifications in 2023
DEVELOPMENT
Shanghai Panlong Tiandi
Hong Shou Fang

Shanghai Taipingqiao Lot 132
Wuhan Optics Valley Innovation Tiandi
Wuhan Optics Valley Innovation Tiandi

CERTIFICATION SCOPE
RetailHongshou Corporate Avenue – East Tower
Hongshou Corporate Avenue – West Tower
Hongshou Foodie Social
OfficeResidential
OfficeOur strategy of environmental sustainability dates back to 1997
with the master-planned, historical Shanghai Taipingqiao Xintiandi
development, which was a forerunner in sustainable community
creation. Aligned with China’s sustainability goals concurrently,
we have consistently maintained our dedication to developing
energy-efficient, green, and healthy communities, focusing on

CERTIFICATION AWARDED
LEED-ND, Gold
LEED-Core and Shell, Gold
LEED-Core and Shell, Gold
LEED-Core and Shell, Gold
LEED-Core and Shell, Gold
China Healthy Building Label, Two StarLEED pre-certificationindoor air quality, while reducing carbon emission, waste andwater usage, mitigating climate-related risks, and investing inclimate resilience.
Details about our environmental sustainability approach can befound on the Clean section of our company website.

7 The assets achieving green and healthy building certification in 2023 include Shanghai Panlong Tiandi, Hong Shou Fang, Shanghai Taipingqiao Lot 132, Wuhan Tiandi Project Management Office, andWuhan Optics Valley Innovation Tiandi.

28

SHUI ON LAND LIMITEDOUR PERFORMANCE IN 2023 – CLEAN

GHG Emissions

Decarbonization
120,000,000

101,966,028
We target to achieve for net-zeroemissions 106,311,948
by 2050. A key milestone in this journey is our participation as the first real estate developer
100,000,000
from mainland
China in the62.60
Science Based Targets initiative (SBTi). We are honored to announce that our 1.5°C-aligned science-based
83,043,200
XX,XXX,XXX
81,496,441
52.91
targets880,000,000
received SBTi approval in July 2023. We
pledged to achieve a 62.4% reduction in Scope 1 and 2 carbon emissions intensity by
42.31
2030, based on a 2019 baseline.
30
30.69

60,000,000

XX.XX
X

Our decarbonization
40,000,000 efforts aim to mitigate carbon emissions across our portfolio, adopting a lifecycle approach for carbon reduction
from design to operation. We have embraced advanced building technologies and energy-efficiency measures to this end. For years, our
20,000,000
property management team has employed energy consumption monitoring systems that integrate energy conservation and emission
Emissions
0 operations. We employ energy-efficientGHG
reduction into dailysystems,
utilizing indoor sunshades to lessen dependence on air conditioning,
2019
2020
2021
2022
2023
120,000,000
and recovering exhaust air to preheat or cool101,966,028
fresh air, 106,311,948
depending on the season. These measures contribute to the safety, health, and100,000,000
62.60
83,043,200
XX,XXX,XXX
81,496,441
comfort of our buildings for living, 80,000,000
working, and recreation.
52.91

Scope
1&2 combined (kgCO2,42.31
equivalent)30
30.69
60,000,000
XX.XX
X
40,000,000 energy consumption laws and regulations andOur projects adhere to China’s building
2 consistently outperform in the China Energy
Scope
1&2
Intensity(kgCO,
equivalent/m)
2
20,000,000
Conservation Evaluation. New projects are mandated to surpass
latest China national energy code by at least 10% in energy reduction
GHGtheEmissions
02021 Cheng2022
2023
at the design stage. Our commercial and office2019
properties2020
under Feng
Property Management
have secured ISO 50001:2018 and120,000,000
101,966,028 106,311,948
ISO 14001:2015 certifications, reflecting
our commitment
toenergymanagement
andenvironmental
standards.
We are on track to meet
Scope
1&2
combined(kgCO,
equivalent)
100,000,000
2
62.60
83,043,200
XX,XXX,XXX
81,496,441
252.91 annual
Scope setting
1&2 Intensity(kgCOefficiency)
80,000,000
our 2030 goal of reducing energy intensity
by 20%,
targets
to mark our progress. In 2023, our energy intensity
2, equivalent/m
42.31
30
30.69
60,000,000
of SXTD assets increased by 10% compared
to 2022 due to the resumption of businessactivities
after the COVID-19 pandemic.
XX.XX
X
40,000,000
20,000,000

Energy Intensity
ofofSXTD
AssetsEnergy Intensity
SXTD Assets
Since 2019Since 2019
0

80
70
60
50
40
30
20
10
0

75.65

2019

80
70
60
50
40
30
20
10
0
80
70
60
50
40
30
20
10
0

2019

2020

2021

2022

2023

Scope 1&2 combined (kgCO2, equivalent)2
Scope 1&2 Intensity (kgCO65.47
2, equivalent/m )

63.45

75.65

62.16

65.47

62.16

57.48

57.48

63.45

Energy Intensity of SXTD Assets Since 2019
2019
75.65

2020

2021

2022

2023

65.47
2
63.45
62.16
EnergyConsumption Intensity (MWh/1000m
)
57.48

2020

2019

2020

2021
2021

2022

2022
2023

Water Intensity of SXTD Assets Since 2019

2023

900
816.64 Energy Consumption Intensity (MWh/1000m )2
800
679.52700
585.79600
488.39439.32500
400
Since 2021, we have implemented300an integrated energy
To improve energy efficiency for achieving our 1.5°C-aligned
200
100
management platform for development
projects,whichhasscience-based targets, we have introduced several initiatives across
0 Water Intensity of SXTD Assets Since 20192023
2019 and 20202022
now expanded to include construction phases
tenant 2021 our properties.
Notably,
AI technology has been integrated into
900
816.64800monitoring, facilitatinguse. This system offers real-time utility
thechiller
3 plant2systems in Wuhan and Foshan. Utilizing historical
679.52
Water
Consumption Intensity (m /1000m )700
comprehensive energy consumption600analysis and enhanced 585.79data and real-time
feedback, the AI optimizes cooling settings to488.39439.32500
data precision. This enables the pinpointingof inefficiencies
balance energy use with comfort. This technology has yielded a400300
and projecting energy trends to refine 200
operational performance.
20% and 17% reduction in cooling energy consumption in Wuhan
100
The 2023 data collection has been pivotal
inidentifying
energyand Foshan, respectively. At Shui On Xintiandi, we have replaced
0
2023
2019
2020
2021
2022
2

Energy Consumption Intensity (MWh/1000m )Water Intensity of SXTD Assets Since 2019

900
816.64heat pumps and fine-tuned cooling controls to boost efficiency.
waste and audit
discrepancies,
ensuring our energy management2
800(m3/1000m
remains accurate and actionable.
Additionally,at )Hong Shou Fang’s food market, overhead fans679.52Water Consumption Intensity
700
585.79were installed to augment HVAC system performance, enhancing
600
488.39
comfort while439.32
conserving energy.
500
400
300
200
100
0
8 Our targets are gross carbon emissions targets,on the purchase of carbon2021
credits to achieve them 2022
2019and we are not relying2020

Water Consumption Intensity (m3/1000m2)

2023
SUSTAINABILITY REPORT 2023

29

OUR PERFORMANCE IN 2023 – CLEAN

We remain steadfast in our commitment to augment the use of renewable energy within our properties. In 2023, we achieved a milestone
by sourcing 100% renewable electricity for all of our properties in Wuhan, including Horizon North, Horizon South, 1 Corporate Avenue,
and Wuhan Tiandi. Shui On Xintiandi also entered into a strategic cooperation framework agreement with the CLP Group, aiming toadvance zero-carbon energy and green power within the commercial real estate sector. The initial stage of this partnership includes
a 10-year power purchase agreement, where CLP will supply green energy from its Jiangsu Yangzhou Gongdao Solar Power Station
to our Nanjing IFC, covering the complex’s entire electricity demand. We anticipate this initiative will cut annual carbon emissions byapproximately 21,000 tons, increasing our share of total electricity consumption from renewable sources to approximately 20% in 2024.
Additionally, starting from this year, SOL has committed to ceasing the procurement of fossil-based company vehicles and has outlined
a strategy to phase out the existing company vehicles by 2030.
Having diligently tracked our Scope 1 and 2 carbon emissions intensity of SXTD assets since 2011, we accomplished a remarkable 46%
reduction from the 2019 baseline year in 2023. However, due to the resumption of business activities following the COVID-19 pandemic,
there was a slight 10% increase compared to 2022.

Scope 1 & 2 Emission Intensity of SXTD Assets Since 2019

70
60
50
40
30
20
10
0

62.60
52.91
42.31

2019

2020

2021

30.69

33.88

2022

2023

Scope 1&2 Intensity (kgCO2 equivalent/m2)

Recognizing the significance of Scope 3 emissions on our overall
carbon footprint, which the UN Global Compact states typically
represent over 70% of a corporation’s emissions, we haveestablished science-based targets for our Scope 3 emissions –reducing scope 3 emissions intensity from purchased goods andservices, and downstream leased assets by 22% respectively, using
2019 as the base year.
Our detailed analysis of embodied carbon emissions from 2017 to2023 across development projects has pinpointed potential areas
for reduction. We have revised our General Specific Standard toinclude specific emission factors for pivotal construction materials

30

SHUI ON LAND LIMITED

such as cement and steel. We now encourage contractors to
procure third-party verification of emission factors for a spectrumof materials, spanning precast components, reinforcing steel,cement, aluminum, architectural glass, ceramic tiles, and stone,
while making it mandatory for concrete, autoclaved aerated
concrete blocks, and steel.
We also began reporting downstream tenant Scope 3 emissions in
2022. To diminish tenant emissions, we have proactively engaged
with them via our Deep Green Lease Program, which encourages
sustainable practices and aims to reduce their carbon footprint.
For a comprehensive view, please see the Community chapter.

OUR PERFORMANCE IN 2023 – CLEAN

Yangpu Riverside Project Pioneers Steel Support Implementation
At the Yangpu Riverside project in Shanghai’s Yangpu District, we have introduced a steel support to replace concrete beams as partof the excavation support structure, responding to the site’s distinct geological conditions where steel is more apt than traditional
concrete supports.
The steel support outperforms conventional concrete supports instiffness and stability. Its recyclability underscores our commitment
to low-carbon construction principles. By employing thismethod, we can cut carbon emissions by 2,339 tCO2 compared
to traditional concrete supports. Furthermore, the utilization ofhigh-performance steel reinforcement contributes to an additional
2,100 tCO2 emissions reduction.
This pioneering integration of steel support at the Yangpu Riverside
project stands as a testament to our dedication to innovative,
sustainable construction. It delivers significant environmental
and economic advantages. We remain dedicated to advancing
low-carbon technologies within the building sector, reinforcing
our commitment to its sustainable progress.

Climate Change Adaptation
To ensure our actions reflect our climate-related goals, we havepledged support to the TCFD and implemented a comprehensive
Climate Change Policy, which articulates our strategy for climatechange mitigation, adaptation, and resilience. This policy will
undergo triennial reviews and updates by our Sustainability
Executive Committee for relevance and efficacy.
In 2023, we commissioned a third-party consultant to conduct a
climate change physical risk scenario analysis for all development
sites and assets under management, assessing our climate valueat-risk (CVaR) under three Shared Socioeconomic Pathways (SSP12.6, SSP2-4.5, and SSP5-8.5) from the IPCC to evaluate the potential
impacts of climate change across various timelines (2030, 2050,
and 2070). Extreme heat, river flood and extreme precipitation
were identified as the most pertinent climate hazards for SOL,
refer to the Climate-related Financial Disclosure section for detailsof the analysis.

Elevated emergency exit for the basement

Steel support structure of the Yangpu Riverside ProjectAs part of the climate change assessment, we conducted an on-site
investigation to assess the effectiveness of our existing measures
for mitigating climate risks. In addition to our existing climatechange adaptation initiatives, we have further implemented
various measures such as elevating emergency exits for basements,
installing curbs at doorways, and securing glass curtains withframes to enhance our sites’ resilience to climate change. These
measures are aimed at minimizing potential damage or disruptions
caused by extreme weather events and further strengthening
our sites’ ability to withstand climate risks. Investigations on our
climate resilience will be conducted regularly and expanded toall our assets going forward.

Curbs at doorway

Trenches for entrances to the basement

For a detailed exposition of our climate-related risk management approach, please refer to the Corporate Governance chapter.
SUSTAINABILITY REPORT 2023

31

OUR PERFORMANCE IN 2023 – CLEAN

Biodiversity
Biodiversity conservation is vital for environmental sustainmentand our planet’s future. At SOL, we are committed to integrating
biodiversity considerations at all project stages – from planningand development to operations, and where relevant – to minimize
adverse impacts of our operations on biodiversity and ecosystems.
In our efforts to positively influence biodiversity, we engaged withan external consultant to conduct research, which aligns withbenchmarks including the Global Biodiversity Framework andNature-based Solutions, on ecological biodiversity and advise on
landscaping for a prospective project in Shanghai. The resulting
insights are instrumental in shaping our urban biodiversity
conservation strategies. Proactive steps to bolster ecologicaldiversity and urban conservation are crucial.
We have fortified our commitment by signing a comprehensive
three-year Memorandum of Understanding (MoU) with The Nature
Conservancy (TNC), a prominent global non-profit organization
focused on biodiversity conservation. This MoU encompasses awide range of collaborative efforts, aimed at tackling biodiversity
challenges and promoting awareness through educational
initiatives. Our shared objective is to bolster urban biodiversity
conservation and drive high-quality urban development inShanghai and beyond.
Additionally, in 2023, we hosted a conservancy expert-led
townhall training to elevate our colleagues’ awareness of urban
biodiversity conservation.

Healthy Communities andBuildings
We commit to a sustainable building approach that encompasses
the entire lifecycle, from planning and design to daily operations.
By integrating passive and active design strategies in building
envelopes, HVAC, and MEP systems, along with sustainable building
design and construction, we create cost-effective buildings thatprioritize the health and wellbeing of our customers and tenants.
We strive to utilize eco-friendly materials, reduce construction noise,and control erosion and sedimentation. During the operational
phase, we ensure indoor air quality, water efficiency, acoustic andthermal comfort, and optimize natural lighting through façade
design. This holistic strategy, combined with our dedication to
cultural heritage and community, allows us to craft vibrant spacesthat enhance modern living while conserving biodiversity.

Green and Healthy Dual
Certifications
Aligning with our refreshed version of 5C Sustainability Strategy,
we aimed for dual certifications in green building and humanhealth and wellbeing for all projects. We adhere to internationaland domestic green and healthy building standards such as
LEED, BREEAM, WELL, China Green Building Label, and China
Healthy Building Label in our design and operations. Shui On
Land proudly holds the distinction of being the top developer
in mainland China with the most LEED ND certifications, while
Xintiandi achieved the world’s first WELL Health Community
certification. Our headquarters office holds the prestigious dual
certifications of LEED Gold and WELL Platinum. Furthermore, ourprojects such as Ruihong Corporate Avenue, CPIC Life Tower,
Lakeville Phase V, and Park Vera (Lot 167A) have received dual
certifications of China Green Building Two-Star and Healthy
Building Two-Star. Additionally, our developments, including
Hongqiao Tiandi Commercial Office and Ruihong residential
projects, have been awarded the China Green Building Operation
Label, cementing Shui On Land’s position as one of the leading
developers in Shanghai with the most China Green Building
Operation certifications.

Material presented at the Biodiversity townhall hosted by The Nature Conservancy

Moving forward, SOL pledges to consistently embed biodiversity
considerations in our decision-making and actively contribute to
the conservation and enrichment of biodiversity where we operate.

Healthy Building Certifications in 2023

32

DEVELOPMENTCERTIFICATION SCOPE

CERTIFICATION AWARDED

Shanghai Taipingqiao Lot 132

OfficeWELL-Core and Shell, Platinum

Wuhan Tiandi Project Management Office

OfficeWELL, GoldWuhan Optics Valley Innovation Tiandi

OfficeWELL pre-certification

SHUI ON LAND LIMITEDOUR PERFORMANCE IN 2023 – CLEAN

Green and Healthy Building Practices at Lakeville Phase V in Shanghai
Lakeville Phase V, which serves as a benchmark for luxury homes in Shanghai, is the latest project in the Lakeville residential series.
The project features sustainable elements such as well-planned layouts maximizing sunlight, natural ventilation, and lighting. Innovations
like double-glazed windows with built-in sunshade blinds, a sunken plaza, and strategically placed skylights enhance natural light,
particularly for the underground pool and leisure areas.
Maintaining optimal indoor air quality is of utmost importance. The project uses eco-friendly materials – solid wood flooring, premium
wall coatings, and bespoke cabinetry – that adhere to stringent limits on air pollutants, surpassing national standards for a healthier indoor
environment. A high-efficiency air filtering system ensures 98% particle filtration efficiency for clean indoor air.
Water conservation is also emphasized. The project employs rainwater collection systems
for outdoor use, with natural settling, filtration, and disinfection processes in place forlandscaping, road cleaning, and irrigation purposes. Each residence benefits from a central
water softener and an ultrafiltration membrane technology for purified drinking water.
The project prioritizes green health to ensure that residents are provided with a green,
healthy, and comfortable environment. The project boasts two-star certifications fromboth the China Green Building Label and the China Healthy Building Label, affirming
its sustainability commitment. Post-completion, Shui On Land’s property management
arm, with its expertise in green building, will guarantee the project’s long-termsustainable operations.

Indoor Air Quality Enhancement
Our commitment to enhancing air quality is unwavering in bothdevelopment and operational phases. Currently, all our officebuildings are outfitted with air quality sensors that provide ongoing
monitoring and assessment. To mitigate the presence of TVOC,
PM2.5, and other pollutants, we mandate that all refurbishment
materials in our buildings possess the China Environment Labelingor Green Building Materials Product Certification. Additionally,PM2.5 management has been integrated into our GeneralSpecification Standard, which sets the technical framework for
all our building projects. Air quality assessments are mandatory
for all residential projects to minimize environmental impact andsafeguard resident health. Before new residential units are handed
over to customers, we rigorously test for pollutants like TVOC andconduct comprehensive indoor air quality assessments.

The air quality sensors
are installed in our
office buildings

Lakeville Phase V in Shanghai

Resource Management andCircularity
Material Reuse and Waste
Management
We strive to diminish our landfill contributions by prioritizing
waste reduction, reuse, and recycling where feasible. Our waste
management practices adhere strictly to national and provincial
regulations, and we endeavor to surpass these standards. We
diligently sort waste at the source and route paper, plastic, and tin
for recycling, continually seeking partners capable of processing
low-value materials. In Shanghai offices, we have installed
partitioned bins for efficient disposal. Our broader initiative acrossthe portfolio raises waste management awareness, employing
educational signage and disposal receptacles to promote public
recycling engagement. Our shopping malls discourage single-use
plastic utensils, and we incentivize plastic bottle recycling among
our employees by providing specialized bins. These PET bottles
are repurposed into school bags, supporting charitable efforts.
In 2023, our SXTD assets produced 53,901 tons of non-hazardous
waste, marking a 19% reduction from the previous year anddiverting 17,506 tons from landfills.
We have implemented a comprehensive waste management
data system that enhances our tracking capabilities, detailing:•

Waste types per square meter; and•Annual and monthly comparative analytics, segmented
by region and type, equipped with a filtering feature for
tailored assessments.
SUSTAINABILITY REPORT 2023

33

OUR PERFORMANCE IN 2023 – CLEAN

Smart Waste Management System
To enhance waste management and data collection, a smart waste
management system has been deployed at 20 waste stations
within SXTD assets, spanning Shanghai, Wuhan, Chongqing, andother locales. The smart waste management system offers benefits
such as digitalization of waste data, which makes monitoringeasier. It also ensures greater precision in measurements,
reducing human errors.
Leveraging AI technology, the system identifies and analyzes
various types of waste – dry, wet, and construction – offering
precise estimations of the volume processed by each station. It
integrates with camera feeds for live image analysis, with data
uploaded to the cloud to facilitate centralized project management
and evaluation. For accuracy, AI-generated figures are crossreferenced with manual checks.
This AI integration shifts our waste management from a reactive toa proactive stance, enhancing real-time monitoring and resource
optimization. It empowers better strategic decisions for sustainablewaste management.

The System records waste-related data e.g. the number of waste trucks handled and buckets

Introducing the Circular Furnishing Service for our Tenants
Shui On WorkX, a distinguished brand of Shui On Xintiandi
specializing in office management, is committed to creating
customized and client-oriented sustainable work solutions
and circular economy services for our tenants. Recognizing
the immense potential of promoting the circular use of officefurniture in reducing carbon emissions by 30% to 50%9, we
have rolled out the Circular Furnishing Service for our tenants,
a one-stop sustainable office furniture solution, consisting of
three key elements including Green Choice, Green Service, andGreen Recycle.
Green Choice promotes office furniture leasing as a viable
alternative to one-time purchases, providing two leasing options
with flexible leasing period and furniture types to our tenants.
Green Service supports tenants throughout the entire lifecycleof their leased office furniture with a range of value-added
Providing the Circular Furnishing Service
services, including secure storage, effective asset management,
reliable transportation, regular maintenance and revamping of
the furniture. Green Recycle provides an integrated approach of office furniture recycling, from repairing and quality control, to resellingand donation to expand the lifespan of office furniture, thus enhancing resource efficiency and reducing waste production.
By offering the Circular Furnishing Service, we aim to empower our tenants to make sustainable choices by adopting circular economy
concepts while enjoying flexible and high-quality office solutions.

9 The figures are referenced from a research study conducted by the China Environmental United Certification Centre Company Limited.

34

SHUI ON LAND LIMITEDEnergy Intensity of SXTD Assets Since 2019
100,000,000

62.60

52.91

80,000,000
60,000,000

83,043,200
81,496,441
42.31
30
30.69

XX,XXX,XXX

XX.XX
X

40,000,000
75.65
20,000,000

80
65.47
0
63.45
GHG Emissions
70
62.16 2020
2019
2021
2022
2023
OUR PERFORMANCE
IN
2023
–
CLEAN
57.48
60
120,000,000
101,966,028
Scope 1&2106,311,948
combined (kgCO , equivalent)
100,000,000
62.60
50
83,043,200
XX,XXX,XXX
81,496,441
Scope 1&2 Intensity(kgCO, equivalent/m)
52.91
80,000,000
42.31
40
30
30.69
60,000,000
XX.XX
X
40,000,000
30
20,000,000
20
02019 Intensity
2020
2021
2022
20232019
Energyof SXTD
AssetsSince
10
Water Conservation
0
Scope 1&2 combined (kgCO , equivalent)
75.65
80
2019
2020
2021
2022
2023
65.47
Scope
1&2efforts.
Intensity(kgCO, equivalent/m)
63.45 is a growing
62.16 In
Water efficiency is a cornerstoneof our70sustainability
China,
where water
scarcity
concern, we feel a profound
2

2

2

2

2

2

57.48
60
responsibility to foster water-efficient designand operation in our buildings. We have implemented low-flow fixtures, water-saving
50
40
2
irrigation, and rainwater recycling systems
30 in SXTD assets, and we design new projects to surpass standard water efficiency benchmarks.
Our asset portfolio features online water20
metersandadvancedmonitoring
systems
for
water
and
energyconsumption,
allowing us to track10
Intensityof SXTD
AssetsSince
2019
0 Energy
usage and identify conservation opportunities.
We
also
inspect
andreplaceleakingpipes
andvalvesinourassetsto
avoid any wastage
2019
2020
2021
2022
2023

Energy Consumption Intensity (MWh/1000m )of water resources. Properties under Feng
Property Management have achieved ISO 46001:2019 certification for Water Efficiency
75.65
80 Cheng
2
EnergyConsumption
Intensity (MWh/1000m63.45
70
62.16
Management Systems. In 2023, our overallwaterintensityof SXTD65.47
assetsincreasedby )11% compared to 2022 due to resumption of
57.48
60
50
business activities after the COVID-19 pandemic.
40
30
20
10
0

Water Intensity
SXTD Assets
Since 2019Since 2019
Water Intensity
ofofSXTD
Assets

900
800
700
600
500
400
300
200
100
0

816.64

2019

900
800
700
600
500
400
300
200
100
0
900
800
700
600
500
400
300
200
100
0

2019

816.64

2020

2021

2022

2023

Energy Consumption Intensity (MWh/1000m2)
679.52585.79488.39439.32679.52585.79439.32Water
of SXTD
Assets20232019
2019 Intensity
2020
2021
2022 Since
816.64

Water
Consumption Intensity (m3/1000m2)
679.52585.79488.39439.322020

2019

488.39

2020

2021

2021

2022

2022
2023

2023

Water Consumption Intensity (m /1000m ) 3
Water Consumption
Intensity (m /1000m2)
3

2

SUSTAINABILITY REPORT 2023

35

OUR PERFORMANCE IN 2023 – CULTURE
Enhanced our flagship“CREATORS 100”
arts and culture program and the63“RanRan”

Young Artist Incubation
Program in partnership with UCCA

Organized
events to foster
community engagement

Strengthened

Culture2023 Highlights

the SOL’s Historical Building
Preservation and Revitalization
Framework and developed ourapproach to fostering talent in
the field of historical building
preservation and revitalization

We are dedicated to preserving and showcasing our local culture
while sharing the essence of Chinese culture with the world,which helps nurture a sense of shared identity and forge stronger
connections. We also believe that cultural revitalization bringssocial and economic value to communities by improving qualityof life and wellbeing. Guided by this belief, we integrate culturalrevitalization into our business models, following the approach of“Bring Heritage to Life.” This approach harmonizes the preservationof historical buildings with commercial development, while also

Partnered with

TongjiUniversity

on an urban regeneration
talent development
program featuringlectures by SOL’s Chief
Sustainability Officer,
Mr. Albert Chan

actively seeks replicable projects for urban regeneration andcommunity development. We also support public and private
partnerships that intertwine culture and sustainability, including
those promoting cultural historical building preservationand development.
Outlined in our refreshed 5C Sustainability Strategy, our 2030
ambitions and priorities guide our approach to culture, details of
which are available on the Culture page of our company website.

Local Culture Revitalization and Enhancement
Spotlight: Shanghai Panlong Tiandi Culture Revitalization Highlights
Panlong Town, dating back over 1,500 years to the Sui Dynasty (AD 581-618), is one of Shanghai’s 32 historical protected zones. We havereinvigorated this ancient town into a dynamic mixed-use community, making it a premier historical and cultural destination in Shanghai.
In 2023, we continued our commitment by hosting a variety of cultural events at Shanghai Panlong Tiandi.

Lumières Shanghai
Shui On Xintiandi’s “Lumières Shanghai” Light Art Festival, held in
Shanghai Panlong Tiandi, embraced the theme “Bring Heritage to Life”.
Established in 2015, “Lumières Shanghai” has grown from world-classlight art festival collaborations to an international artistic exchange
platform. It’s now a key cultural event in Shanghai, fostering creative
talent through the “Created in China” initiative. Many exhibitions are
adapted to local conditions, taking advantage of the in-depth history
and culture of Shanghai Panlong Tiandi, in order to offer an immersive
cultural experience and enrich Panlong’s night economy and culturalscene, such as “The Moon Journey” and “Zhangdeng Jiecai II”.

36

SHUI ON LAND LIMITEDThe Moon Journey

Baer’s Pochard

OUR PERFORMANCE IN 2023 – CULTURE

Collaboration with Yuz Museum
In 2023, the prominent Yuz Museum, founded by Chinese-Indonesian businessman Budi Tek, moved to Shanghai Panlong Tiandi. As a
non-profit organization dedicated to art education and bringing global attention to Shanghai, the Yuz Museum’s vision complements
Shui On’s cultural mission to advance contemporary Chinese art and foster cultural exchanges both domestically and internationally.
With the museum’s relocation to Shanghai Panlong Tiandi, Shui On has partnered to offer expansive outdoor areas for art installations,
including sculptures and exhibitions. During the inaugural “ART IN GREEN” public art season from April to October 2023, the Yuz Museum
initiated “Wander,” a community public art project that weaves contemporary art into the traditional Jiangnan streetscape. This program
invites locals to reconnect in their well-known streets, offering a blend of natural beauty and dynamic modernity. It also entices tourists
to meander through these crossroads, finding delightful surprises. The project has resonated deeply with the local historical and cultural
fabric, forging strong community ties. Working with the Yuz Museum, Shui On is committed to nurturing art appreciation across all ages,
leveraging public education to draw visitors into the artistic experience and, ultimately, into the museum.

Yuz Museum in Shanghai Panlong Tiandi“The Fifth Season”
Shanghai Panlong Tiandi has collaborated with British artist
Celyn Bricker on “The Fifth Season,” a series of AI-generated video
artworks displayed on five ancient bridges in the Panlong area.
Drawing on the unique names and features of each bridge, thepieces convey light and shadow narratives corresponding to thefour traditional seasons plus the “long summer”. Bricker’s “The
Fifth Season” contemplates the potential shifts in seasons due
to climate change. This captivating light and shadow play not
only enchants viewers but also artistically underscores the urgent
environmental changes impacting our world’s future.
”The Fifth Season” by British artist Celyn Bricker

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OUR PERFORMANCE IN 2023 – CULTURE

Case study: Historical Building Preservation and Revitalization System
The Historical Building Preservation and Revitalization System encapsulates over 20 years of expertise from urban regeneration endeavors
like Xintiandi and Lingnan Tiandi etc. It provides a methodical framework for preservation, integrating planning and design, development,
and expert collaboration.
Spanning technical skills, content generation, innovation, and cultural conservation, the system offers guidance on data analysis, blueprint
restoration, architectural design, construction methods, materials, operational management, and sustainability.
Internally, Shui On Land employs the system for training, ensuring
its team is well-prepared for future projects. It also functions as areference, supplying detailed information and documentation for
ongoing and future initiatives. Externally, it aids city development
and cultural heritage preservation, assisting in establishinglandmarks and enhancing urban identity. It is also a resource for
exhibitions and public engagement, providing community insight
into the historical value of conserved buildings. Regular updates tothe system incorporate fresh project insights, current regulations,and expert consultancy, maintaining its relevance and alignment
with cutting-edge preservation practices.

SOL has been deeply engaged in historical building preservation
and regeneration for years. In 2023, we established an urban
regenration talent development system for historical building
preservation and regeneration, cultivating a framework to preserveand renew these architectural treasures. This framework is built onfour dimensions: experience; knowledge and skills; general abilities
like communication, interpersonal skills, and learning ability; andpersonal traits and motivation, such as curiosity, aesthetic sense,
and inspiration. This system is specifically focused on historicalpreservation projects. Due to the shortage of professionals inthis niche market, we have launched ongoing training programs
and a knowledge hub to provide essential training for colleagues
from different functional areas. The framework aims to establish
standards and certifications for each profession, with internal
experts playing a crucial role. Talent inventory and team building
have been conducted, and the talent standard now acts as ascreening criterion for future talent selection, covering experience,
knowledge and skills, general abilities, and personal traits andmotivation, with departmental consensus.

Our Historical Building Preservation and Revitalization System

experiences in over five lectures and forums, attended by students,
government officials, and representatives from design institutes.
Our projects – Shanghai Taipingqiao, KIC, Wuhan Tiandi, andFoshan Lingnan Tiandi were referenced to share SOL’s successin creating sustainable communities through balancing otherelements, for instance, placemaking and commercial retail design.
Looking ahead, we are strategizing to foster collaboration andknowledge exchange between international and domestic
governments, aiming to significantly contribute to urban
development progression.

Partnership with Tongji University on an
Urban Regeneration Program
In 2023, we partnered with Tongji University on an urban
regeneration program to foster urban regeneration talents andtrain students in this field. The program also aims to influence major
stakeholders and urban planners with new urban development
perspectives. Our Chief Sustainability Officer, Mr. Albert Chan,has contributed by sharing his practical urban regeneration

38

SHUI ON LAND LIMITED

Our Chief Sustainability Officer, Albert Chan, shared his practical urban regeneration
experiences in lectures and forums at Tongji University.

OUR PERFORMANCE IN 2023 – CULTURE

Local Creativity and Creators
China is globally acclaimed for its diverse manufacturing capabilities,
and there is growing pride in the “Created in China” label. We arecommitted to celebrating the creative aspects of Chinese culture,
focusing on the arts, music, dance, food, fashion, festivals, andeducational activities. This commitment is exemplified throughour collaborations with local artists, designers, and artisans, whohave showcased their work within our developments and throughonline platforms. Additionally, we support local creators by hiringthem for projects and organizing events that display their talents.
Building on the “CREATORS 100” arts and culture program’s success,we have broadened our efforts this year to include a wider varietyof creators, proudly noting a significant increase in female creator
representation – now at 50% of our collaborations.
Our “RanRan” program, which nurtures young artistic talent anddelves into Chinese culture, has delivered notable results since2022. We conduct biannual recruitment and evaluation sessions
for young artists, selecting two creators each quarter to receive

support, including stipends, workspaces, project funding, cultural
guidance, and exhibition opportunities within our residency. With
the program running for the second year, we have received morethan 300 applications from young artists in 2023. This year, weagain organized the RanRan Art Season, collaborating with over 30
artists and 40 brands for events including public art installations,public art projects, lectures and performance workshops in the
Shanghai Greater Xintiandi area.
To support emerging Chinese creative designers, Shui On Xintiandi
launched the Xintiandi Scholarship with Central Saint Martins,
University of the Arts London, in 2015. The scholarship assists Hong
Kong and mainland Chinese BA Fashion Design students in their
final year by covering their tuition fees and providing platforms
to present their work. The Xintiandi Scholarship offers financial
support on the procurement of high-quality materials and stateof-the-art equipment and collaboration with professionals in theindustry, allowing the scholar to complete their art pieces. We arecommitted in providing continuous support to the creative growthand development of young talents in China and Hong Kong.

The 2023 RanRan Art Season, themed “City Jump”, encourages dynamic and challenging jumps into the unknown urban life.

As enthusiasts of food culture, we support both official and private time-honored brands in China, offering dedicated spaces for small andmicro economies. We provide these enduring private brands with various support forms, such as store design, promotional activities, andlogo creation. For example, we helped “Nian Zhi Gao” relocate from Zhao Jia Lou to Shanghai Panlong Tiandi and are excited about theupcoming opening of “Da Hu Chun” in the same venue. Such support has helped some brands double their annual revenue. We remaincommitted to actively preserving and promoting China’s rich cultural heritage.

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OUR PERFORMANCE IN 2023 – CULTURE

Cultural Exchange
We value the diversity of thought, ideas, and practices, and we are committed to nurturing international cultural exchange activities andevents. Our goal is to understand diverse perspectives on a range of topics from around the world.
We achieve this by fostering partnerships with both local and international cultural organizations and by hosting cultural and urban
regeneration events with various cultural groups.
For over a decade, we have celebrated the creativity of artists worldwide through our famous festivals and cultural events. In 2023,
this included:

Shanghai Fashion Week at Xintiandi
Shanghai Fashion Week has become the premier fashion event in Asia and a highlight on China’s fashion calendar. Our longstanding
strategic partnership with Shanghai Fashion Week, spanning over a decade, has contributed to this achievement.
This year is the 20th anniversary of Shanghai Fashion Week, featuring the ROYAL CLUB collection by British brand HAZZYS with a sportsthemed concept. The event showcased over 70 runway shows, more than 10 trade fairs – including Ontimeshow, the largest fashion
trade fair in Asia – and 10 events focused on sustainable innovation, art and design, technology, folk culture, emotional healing, andwomen’s empowerment.

Xintiandi Design Festival
Our strategic partnership with Design Shanghai makes the Xintiandi Design Festival an extension of Asia’s leading design event. Esteemed
designers from international and Chinese backgrounds presented 21 installations under the theme of Plug-in-Illusion, demonstrating
the city’s vitality in 2023.

Xintiandi World Music Festival 2023
The “2023 Xintiandi World Music Festival” made its debut at Shanghai Panlong Tiandi with a special event titled “Water Music Panlong(水樂蟠龍)” that aimed to delve into the cultural legacy of Panlong Ancient Town. The event featured around 25 performances fromboth local and international bands and musicians under the theme “Bring Places to Life”. Kunqu opera maestro Zhang Jun offered an
innovative interpretation of “A Moonlit Night on the Spring River”, a treasured local intangible cultural heritage, in celebration of theoccasion. In addition, we worked closely with Qingpu Cultural Center and inheritors of Qingpu Tian Ge, along with acclaimed composer
Peng Cheng, to release the first EP album “Tian Ge”, which captures the essence of Jiangnan music.

Bottle Project 2.0“Bottle Project 2.0” focuses on developing the content intellectual property for Chinese wine culture. Its aim is to craft an immersive
experience for young wine aficionados, with the theme of “taste”. Challenging traditional wine norms, the project encourages a fusionoriented and youthful wine culture through unconventional pairings. A series of activities including private events, themed parties, wine
tours, and festivals are designed to connect tenants and create engaging wine culture experiences. “Bottle Project 2.0” leverages wine
culture to craft an immersive and interactive environment.

Immersive Modern Dance Performance in Foshan Lingnan Tiandi
Foshan Lingnan Tiandi, in partnership with Zumiao Wentou and the Guangzhou Yunna Dance Troupe since 2022, has produced “FullCircle”, an immersive modern dance performance inspired by the Cantonese opera “The Purple Hairpin”. Historic buildings in Lingnan
transform into a stage, reenacting traditions such as the Lantern Festival and Lingnan’s conventional weddings. This fusion of modern
technique with traditional art serves as a conduit for urban art dissemination in today’s society.

40

SHUI ON LAND LIMITEDOUR PERFORMANCE IN 2023 – CARE

Became a signatory to theUnited Nations
Women’s
Empowerment
Principles
Enhanced“Your Voice”

Achieved an average offor each employee

32 hours

Care2023 Highlights

employee engagement survey toencourage employees to voice out
their opinions

Shui On Land’s vision of being a pioneer in sustainable premium
urban communities begins with our team’s dedication to create
value for all stakeholders. We endeavor to transform this vision
into actuality by creating an exceptional work environment forour team. We are committed to treating every employee fairly, by
providing equal work opportunities and access to comprehensive
career training and development. To be an employer of choice,
we prioritize offering a safe and healthy work environment,

11,900 volunteer

Over
hours contributed

fostering a diverse and inclusive workplace where everyone isinspired to develop their skills and achieve their best. Attracting,developing, and retaining top talent is essential – not just for
driving performance and innovation – but more so for cultivating
a caring, competent, healthy, and engaged workforce.
Guided by the refreshed 5C Sustainability Strategy, our 2030
ambitions and priorities guide our approach to care, details of
which are available on the Care page of our company website.

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OUR PERFORMANCE IN 2023 – CARE

Talent Development

Wellbeing, Health and Safety

Our experience has shown that engaged employees are more
content at work and home. High engagement has reduced
turnover, boosted productivity, and led to superior businessresults. We actively recruit and support individuals from diverse
backgrounds, embracing varied perspectives and innovative
problem-solving to benefit our customers.

Ensuring Health and Safety for All

The Talent Development Committee, in collaboration with HR, setsorganizational talent goals to promote employee growth. Throughtraining and development initiatives, we enhance motivation,
engagement, and continuous development, attracting andretaining top talent with the right competencies for each role.
In 2023, we achieved an average of 32 training hours for each
employee which included responsible marketing, advertising
practices, sustainability, and business ethics.
To maintain an engaging workplace, we offer diverse training,
workshops, and mentorship programs. In 2023, we refined the
SOL Talent Development program and bolstered our employer
branding. HR and managers conducted annual performanceand development reviews, including goal setting and appraisals.
Colleagues participated in these reviews to determine personal
development and learning initiatives, with HR overseeing career
progression planning. We continued developing a comprehensive
training program for all levels, personalized for each employee.
Our O2O learning platform, Shui On Academy, encourages an“I own my learning” philosophy. The program includes personal
development targets, audio literature, “Shui On Knowledge”
sharing sessions, and a 5C sustainability knowledge forum. Training
covers individual development, contribution, project, and asset
management, and includes construction-specific content, witheach employee receiving an annual development plan.
To foster a culture of innovation, we enhanced our “Your Voice”
employee engagement survey in 2023 by further incorporating
questions targeted at our goal of becoming China’s top employer.
As a vital component of our holistic employee engagement
approach, “Your Voice” serves as a dynamic feedback ecosystemcomprising “feedback”, “insight”, “action plan” and “activate”
to assist our employees in their development. Employees also
participate in an engagement survey, with incentives given toteams with a high response rate. A third-party consultant ensuresconfidentiality in analyzing feedback, with findings and actionplans communicated across all levels. In 2023, 87% of targeted
employees completed the survey. This complements otherengagement initiatives like “Lunch with Management”, “ReadingClub”, SOK, Career Week, and Shui On+.

42

SHUI ON LAND LIMITEDAt Shui On Land, we strive for zero fatalities across the supply
chain and commit to providing a safe and healthy working
environment. Our goal is an injury-free workplace. Health,safety, and wellbeing are integral to our core values, and wecontinuously improve our safety performance as part of ourdaily work habits. A robust health and safety strategy is in place,overseen by our Board-level Sustainability Committee, CEO, andCSO. Their dedication to employee and stakeholder wellbeing isevidenced by a compensation structure tied directly to healthand safety outcomes.
Beyond our established EHS management system for occupational
health and safety risks, we rigorously prevent accidents atconstruction sites by adhering to machinery, equipment, and site
safety production management systems. We conduct third-party
health and safety assessments at all construction sites, with all
workers covered by these externally audited systems. In 2023, weachieved ISO 45001 Occupational Health and Safety Management
System certification for all operation sites, underscoring ourcommitment to health and safety and ensuring our protocols
meet international standards.
Our Target Zero initiative emphasizes a zero-injury mindset for
both our employees and contracted partners, fostering a culturethat prioritizes safety and well-being. We firmly believe that“safety never takes a day off” and are committed to instilling thismindset throughout SOL and its supply chain. This initiative aims toeliminate accidents, enhance safety awareness and skills, eliminate
unsafe behaviors, and reduce hazards in the workplace.
The Smart Construction function within the SOL Cloud Construction
System supports our health and safety goals by tracking worker
training, registration records, injury data, and real-time monitoringof safety hazards. Our consistently low accident rate reflects thecommitment of our teams to uphold high safety standards.
In 2023, we achieved a construction site injury rate of 1.03%.
Acknowledging the imperative for ongoing improvement, we
persist in promoting safe behaviors and enforcing safety protocols
to sustain our zero-incident ambition.
Continuing our pursuit of excellence in 2023, we developed clear
policies and communication channels to report near-misses andimprovements to prevent potential injuries and damage. We alsodelivered targeted trainings for property management employees,
including mental health, emergency management, and shopping
mall safety checks, engaging more than 2,000 participants.
Moreover, we enhanced our health and safety online coursewith three modules tailored to construction sites, commercial
properties, and office environments, providing 3,899 hours ofhealth and safety training to employees in 2023.

OUR PERFORMANCE IN 2023 – CARE

Improving Employee Wellbeing

Diversity and Inclusion

At SOL, employee wellbeing is synonymous with leading abalanced life that nurtures physical, mental, and social health.
Our strong team – caring, dedicated, and creative – has been
pivotal in building the business we proudly manage today. This
dedication stems from our commitment to helping employees
maintain a healthy work-life balance, fostering a flexible workplacethat meets the needs of both the company and the individual.

Shui On Land is firmly committed to fostering a diverse andinclusive working environment for all our employees. Within ourcompany culture, we hold diversity as a core strength and we will
never tolerate any form of discrimination or harassment related
to race, religion, gender, or disability.

We have established various communication channels for
employees to express their questions, concerns, suggestions,and ideas. A key outlet is a dedicated complaint and suggestion
email address, encouraging employees to reach out at any time,with the promise of individual follow-up within three working days.
In 2023, we introduced an employee assistance platform forall employees and their direct family members. This platform
offers a suite of counseling services, including 24-hour one-onone sessions, covering career counseling, communication withsuperiors, employee-related issues, and physical health. Mental
health assessments are also available to help employees evaluate
their wellbeing. The platform provides easy access to expert advice
and resources, with counseling available via phone or in person,
and includes a column on health-related topics. The employee
assistance platform is founded on the principle that self-care andself-love are critical.
In June 2023, the Recreation Club underwent a brand refresh andteam restructuring, promoting the ethos of “Healthy life, happywork” throughout SOL. The club aims to enrich social connections,improve leisure experiences, foster a vibrant office culture, andbolster a sense of belonging. Our community support extends tolocal groups through donations and volunteering, with a focus
on underprivileged communities and migrant children in China.
This year, employees contributed a combined total of 11,900
volunteer hours.

To ensure we make steady progress in this critical area, wehave instituted policies that promote equal opportunities inall employment-related activities. We believe that by placing
people in roles best suited to their abilities, we create a more
dynamic and effective workforce. To this end, we also provide all
our colleagues with unconscious bias training annually, focusing
on increasing awareness of implicit biases and providing strategies
to minimize discriminatory behavior. Additionally, annual antisexual harassment training is provided to educate all colleagues
on identifying, preventing, and addressing instances of sexual
harassment, fostering a workplace that is safe and respectful for all.
In 2023, female colleagues constituted 53% of the total colleagues
who were promoted and 23% of the total colleagues working in
IT or engineering. We also made significant strides by recruiting
three colleagues with physical disabilities, some of whom havejoined our property administration and engineering departments.
We continue to assess and identify further roles where we can
employ disabled individuals.
Following feedback from an internal questionnaire, we updated
and optimized the SOL Office Standards and Guidelines to define
standards for diverse office scenarios, which include restroom
designs that meet accessibility standards. These updated standards
were first piloted in the project office of Hong Shou Fang, withenhancements completed and then applied to our renovation
projects. In our head office, we have built several accessible
washrooms, resting rooms, nursery rooms, and other facilities toaccommodate our physically challenged colleagues. Beyond our
immediate environment, we support the disabled community bycontributing 1.5% of our total annual employee remuneration toa social fund for people with disabilities.

SUSTAINABILITY REPORT 2023

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OUR PERFORMANCE IN 2023 – CARE

We also offer a wide array of workplace benefits aimed at helping ourteam members achieve a high level of work-life harmony. In 2023,
we enhanced our iFamily Program, enabling employees to betterbalance their professional and family responsibilities. The program
allows for flexible working hours, the option to work from different
locations, and up to 20 days of special leave for family-related issues.
To further support our employees’ well-being, we have upgradedtheir insurance coverage to include critical illnesses and introduced
additional voluntary insurance options for those with newborns. We
also conduct an annual review of our compensation and benefits
packages to ensure they remain competitive. Our unwaveringly
low turnover rate is a testament to our dedication towards retaining
employees and fostering a diverse and inclusive work environment.
In 2023, our turnover rate stood at 19%, with a relatively balanced
departure ratio of female to male employees at 1:1.44. To support theworking parents on our team, we have also implemented a policy in2023 to provide our male colleagues with 10 days of paternity leave,complementing the existing 22.6 weeks of maternity leave available
for female colleagues.

with our Board. In 2023, the representation of women on our
Board increased to 33% from 27% in the previous year. We takepride in our remarkable achievement in fostering gender diversity,with a strong representation of women colleagues throughout
the company. Going forward, we will continuously assess
our talent acquisition and retention strategies, ensuring theyalign with our business requirements while promoting genderequality and embracing diversity. We are also actively working
towards achieving gender pay equity by 2030. To further provide
psychological support on self-care and development for female
employees, we have launched Women’s Day events themed“exploration of diversity in female identify” in 2023.
Proportion of Female in the Board Composition
%
40
33%
30

27%
22%

As a recognized leader in promoting gender equality, included in
the Bloomberg Gender-Equality Index (GEI)10, we are committed
to enhancing gender diversity at all organizational levels, starting

20

10

2021

2022

2023

Became a Signatory to the United Nations Women’s Empowerment Principles
We are dedicated to fostering gender equality within Shui On Land. By signing the United Nations Women’s
Empowerment Principles, we have reached a milestone in our commitment to gender equality, diversity andinclusion. These principles outline seven essential steps that we can take to promote and empower women,
including fair treatment for both women and men, ensuring their health and safety, providing educational
opportunities, and striving for equality in community initiatives.
Equal treatment of women and men brings the broadest pool of talents to our endeavors and further ourcompetitiveness. We remain steadfast in our corporate responsibility to uphold gender equality and pledge toimplement these principles, with the ultimate aim to create a future where women have equal opportunities
to thrive and succeed.

Shared Value for Society
Understanding that public welfare is a collective responsibility, we, as a responsible community developer, prioritize investing in thecommunity on multiple fronts. We encourage our employees to invest in community development by volunteering their time and skills.
This not only fortifies our bond with the community but also allows our team to make a significant impact in the areas we serve. We aim
to accumulate 150,000 volunteer hours by 2030, and in 2023, our employees have contributed over 11,900 hours.

“Play Social” Program“Play Social” is a volunteer ecosystem and community collaborative program designed to encourage enterprises and individuals to
dedicate time and services to the next generation. We partner with business founders, artists, and professionals who provide content forour philanthropic lectures and exhibitions, enriching families and children in our community with valuable educational experiences. Since
its inception in 2022, “Play Social” has logged over 300 hours of volunteer service and engaged more than 105,000 participants.

10 Shui On Land has been actively involved and included in the Bloomberg GEI since 2020. At the time of preparing this Sustainability Report, the outcomes of the 2024 Bloomberg GEI have not yet
been released.

44

SHUI ON LAND LIMITEDOUR PERFORMANCE IN 2023 – CARE

Shui On Seagull ClubThe Seagull Club, a non-profit charitable entity initiated by our employees, aims to promote and create awareness of Shui On’s commitment
to social responsibility and sustainability. All registration fees and donations from our activities are funneled directly to social welfare
projects through the Seagull Club. Spanning Shanghai, Nanjing, Chongqing, Wuhan, and Foshan, the events included:• The “PAY IT FORWARD” charity step donation campaign saw 1,388 participants, covering about 41,000 kilometers in 15 days, translating
to over 59.5 million steps and around 9,900 hours of charitable activities.

• The “Treasure School Uniform” initiative collected 20,000 plastic bottles, repurposing them into 200 sets of school uniforms for children
in need, demonstrating an innovative, sustainable approach to recycling.

“The OneEgg” Charity Project“The OneEgg” charity project operates as part of the “Green Heart
Community” initiative under Shui On Xintiandi. This project iscarried out in partnership with the Shanghai United Foundation.
The initiative allows consumers to convert loyalty points into
donations, providing daily eggs for children’s nutrition in remoteareas. The goal is to foster better health,academic improvement, and brighter
futures for these children. Throughthis point-based system, we empower
customers to join us in making ameaningful social contribution.

SUSTAINABILITY REPORT 2023

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OUR PERFORMANCE IN 2023 – CORPORATE GOVERNANCE
Overhauled the

Crisis Management
Manual and bolstered crisis management

Extended compensationlinked sustainability

training for the governance body

KPIs

to department
heads and project heads

Corporate
Governance2023 Highlights

Diversified

Issued the largest private enterprisegreen-mortgage
backed onshore
CMBS in Mainland China,

our Board by appointing
the second a female
Independent NonExecutive Director

with a total value of RMB 4.4 billion

We endeavour to become a trusted partner for all stakeholders
by nurturing a corporate culture of integrity, transparency, andaccountability. To ensure that we abide by the highest standardof corporate governance and business ethics, we have integrated
them into daily operations to ensure our compliance and beyond.

Aligned with our refreshed 5C Sustainability Strategy, our 2030
ambitions direct our governance approach, detailed on our
Corporate Governance page and the 2023 Annual Corporate
Governance Report.

Sustainability Governance and Transparency
As a company with over 3,000 employees managing more than 8.5 million square meters of space, we view a robust approach to corporate
governance that integrates sustainability as essential for leading sustainable urban community development.
We actively promote sustainability through employee training and have established compensation-linked sustainability KPIs. Ourcommitment to sustainability engages not just our employees but also our senior management, departments and project teams, who
drive the organization to embrace and execute the numerous initiatives outlined in the 5C Sustainability Strategy. Last year, we linked
the compensation of our CEO, CSO, and the Sustainable Development Executive Committee to sustainability-related KPIs. In 2023,
this practice was extended to include our department and project heads. Our management and oversight of sustainability issues areingrained in our business plan and the day-to-day management of sustainability “tasks” within our operations. This involves aligning ourcorporate governance practices with sustainability considerations and incorporating sustainability-related risks into our enterprise risk
management systems.

46

SHUI ON LAND LIMITEDOUR PERFORMANCE IN 2023 – CORPORATE GOVERNANCE

Ensuring Corporate Governance is Sustainable
We recognize that leadership in sustainability at the Board and executive levels is pivotal for embedding sustainability management andperformance into our culture, operations, and business relationships. In 2023, our initiatives to advance our corporate governance in linewith the 5C Sustainability Strategy included:•

Extending compensation-linked sustainability KPIs to include our department and project heads.

•

Conducting a comprehensive review and update of the Crisis Management Manual and providing advanced crisis management
training for the governance body.

•Appointing the second female Independent Non-Executive Director (INED) to improve Board diversity.

•

Offering training aimed at increasing senior management’s expertise in climate risk management.

Our Board initiates the planning and execution of the 5C Sustainability Strategy, and the Board-level Sustainability Committee offers direct
support to ensure the strategy’s integration with our overall business operations. The Chief Sustainability Officer heads the Sustainable
Development Department, overseeing sustainability tasks and monitoring the Group’s sustainability strategies.
To foster a more diverse and balanced Board in terms of skills, experience, gender, and knowledge, we revised our Board Diversity Policy,
effective January 2022. Further details are available in our 2023 Annual Corporate Governance Report. Additionally, we strategicallyenhanced our Board’s diversity and independence by appointing two Independent Non-Executive Directors (INEDs) – one male andone female. By the end of 2023, INEDs accounted for eight out of twelve Directors, represented approximately 67% of the Board. In
terms of gender diversity, females constituted about 33%, up from 22% in 2021 and 27% in 2022, reflecting our dedication to diverse
and inclusive leadership.
Recognizing the importance of sustainability in property development and asset management, we are committed to establishingsystematic data systems and improving our reporting processes. Our 2022 Annual Corporate Governance Report has seen enhanced
disclosures which are in line with specific GRI Disclosures related to governance structure and impact management. We will keep abreastof the latest GRI disclosure requirements and enhance our reporting as necessary.
Employee engagement with our corporate vision and strategic approach to sustainability is crucial. In 2023, all of our new employees
received sustainability-related training during their orientation. Additionally, we hosted two sustainability townhalls themed “Sustainable
Development Sharing” and “Embracing the Nature in City,” featuring our CSO, Mr. Albert Chan. The positive impact of these initiatives wasreflected in the results of our “Your Voice” employee engagement survey. The survey indicated that our employees have a high level ofawareness when it comes to sustainability. We are dedicated to continue investing in sustainability-related training and engagement activities.

Incorporating Sustainability-related Risks into Enterprise Risk Management
Our commitment to ethical behavior and risk minimization is reinforced by our governance structure. The Board is responsible foroverseeing effective risk management and internal controls, evaluating their effectiveness in safeguarding our assets and the interestsof our shareholders. This oversight is crucial as sustainability-related risks increasingly influence our business landscape. To address this,we have integrated these risks into our corporate ERM framework, enhancing our responsiveness to sustainability challenges.
Addressing stakeholder concerns over our climate risk practices, we have conducted a detailed climate change physical risk scenario
analysis with the help of an external consultant and initiated targeted sustainability training this year. We also embraced the TCFD
framework, implementing a TCFD-aligned Climate Change Policy throughout the organization in 2022. To improve our managementof sustainability and climate risks, we have provided specialized training for our Board and senior management. These sessions focusedon the results of the climate change physical risk scenario analysis, its implications for our business, and the latest in sustainability andclimate risk regulations, including the TCFD recommendations, the upcoming modifications to the HKEX ESG Guide, and the new IFRSClimate-related Disclosure sustainability standards.

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OUR PERFORMANCE IN 2023 – CORPORATE GOVERNANCE

Successfully Issuing the Largest Private Green-Mortgage-backed Onshore CMBS in
Mainland China
In April 2023, Shanghai Ruiqiao Real Estate Development Co., Ltd., a subsidiary of Shui On Land, successfully launched an onshore
commercial mortgage-backed securities (“CMBS”)backed by its commercial property. The issuance, named the “Shui On Land-Hongqiao
Tiandi Green Mortgage-backed Special Plan (the Green Mortgage-backed Special Plan) is backed by the Hongqiao Tiandi commercial
properties in Shanghai, marking it as the pioneering CMBS for a commercial hub linked to a transport facility in China.
Listed on the Shanghai Stock Exchange, the Green Mortgage-backed Special Plan has an issue size of RMB 4.4 billion, with a top-tier credit
rating of AAA(sf) and a coupon rate of 3.9%. The funds raised are intended for debt repayment and to augment the Group’s working capital.
The issuance demonstrates the high quality of the Group’s properties and its commitment to sustainable financing. It also evidences theGroup’s strong capital management, representing an advancement in its domestic financing efforts.

Shui On Land Hongqiao Tiandi, Shanghai, China

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SHUI ON LAND LIMITEDOUR PERFORMANCE IN 2023 – CORPORATE GOVERNANCE

Emergency Preparation and Risk Mitigation
Our Emergency Preparedness Team leads our efforts in maintaining robust preventive measures and standardized services to ensure thesafety of our colleagues, residents, tenants, and customers. In 2023, we have bolstered the identification and assessment of “principal”
risks, realigning our risk management framework in accordance with COSO (Committee of Sponsoring Organizations of the Treadway
Commission) principles.
This year marked a substantial upgrade in our risk management and compliance operations. We not only revised our Crisis Management
Manual to match current industry standards but also compiled a comprehensive compliance manual. Our updated crisis management
procedures have been the focus of annual training sessions, particularly for our governance bodies to ensure they are prepared forpotential crises.
We have conducted a thorough review of our risk management system twice in 2023, calling on risk owners to update their records on
various risks including sustainability and climate-related risks if necessary. These updates, along with the risk management report andinventories, have been presented to and approved by the Audit and Risk Committee and the Board in 2023. These will guide our risk
mitigation activities throughout 2024.
Looking ahead, our objectives are:•To deepen our risk identification and evaluation processes by engaging corporate and project leaders in risk analysis and having
the CEO and Risk Management Working Team formulate response strategies.

•

To ensure all business units have current emergency management plans by consistently updating the Crisis Management Manualand holding monthly operational risk assessments.

•

To continuously strengthen our cybersecurity infrastructure, requiring IT and Digital Innovation Department briefings on security
measures and data privacy compliance at each Audit and Risk Committee meeting.

•

To revisit and enhance our whistleblowing processes in the upcoming year to improve their effectiveness and integrity.

Cybersecurity
In 2023, our Personal Information Security Management System was reinforced to secure customer data, earning us the ISO 27701
certification along with our existing ISO 27001. This reflects our commitment to network security, particularly with the increasing useof consumer-end systems. We achieved Level 3 security certification for a key customer platform, ensuring robust data protection. Our
ongoing initiatives include regular information security training, with specific programs like IT phishing defense, and routine systemreviews and updates. We conduct continuous disaster response drills to prepare for various threats, encompassing hacker attacks andvirus intrusions. Furthermore, our systems in China meet Level 3 personnel protection standards, and we diligently inspect data centers
and take actions to prevent data breaches.

SUSTAINABILITY REPORT 2023

49

OUR PERFORMANCE IN 2023 – CORPORATE GOVERNANCE

Highest Standard of Integrity in Our Business Operation and Supply Chain
By acting with integrity, we have secured the trust of customers, partners, and stakeholders along our supply chain. This is a result of ouradherence to laws, regulations11, and our own stringent corporate governance, which is supported by robust internal controls and risk
management procedures.
Our Ethics Committee and Board-level Audit and Risk Committee oversee all matters related to our conduct and business ethics. They
review our corporate governance policies and practices and are responsible for the creation of anti-corruption training and management.
Our Internal Audit and Risk Department conducts regular audits on all business units and processes at three-year intervals, based on anannual audit plan sanctioned by the Audit and Risk Committee. The Code of Conduct and Business Ethics outlines the ethical and legal
framework within which our organization and employees operate. It provides guidance for handling complex situations and is routinely
updated to ensure it mirrors the Spirit of Shui On. In 2022, we reviewed and refined the Code’s provisions concerning ethical investigations
and business processes, with amendments taking effect last year.
All employees, from senior management to part-time employees and contractors if any, are mandated to attend Code of Conduct andBusiness Ethics training annually. They must also submit a declaration to adhere to the Code. New employees are introduced to ethics
training during their orientation and attend another session after their probation period. In 2023, we achieved full compliance with theannual declaration for all employees and ethics training attendance for senior management. The training encompassed key businessareas including procurement, sales, marketing, leasing, and comprehensive internal control and risk management based on the COSO
and ERM frameworks. In addition, specific employees are required to complete targeted online “Business Ethics” training12 annually. This
specialized training focuses on spotting corruption and reporting breaches of the Code. In 2023, this targeted training was attended by
all selected employees.
We also include our anti-corruption policies in standard contracts with business partners and provide training on the Code of Conduct andBusiness Ethics to our suppliers and contractors. This is part of our annual Supplier and Contractor Forum, which in 2023, was attended
by all strategic suppliers and main contractors. Their active participation reflects our collective commitment to maintaining high ethicalstandards and sustainable practices across our operations.

International Anti-Corruption Day
Film Screening Event
To raise anti-corruption awareness among rank-and-file employees,
the Ethics Committee organized a film screening event on
8 December, 2023, recognized as International Anti-Corruption Day
by the United Nations. This initiative has enhanced our colleagues’
understanding of corruption risks and reinforced the United Nations’message that “eliminating corruption is everyone’s responsibility”.

11 See the Content Index which outlines relevant laws and regulations in more detail, per topic.
12 All Shui On Land/Shui On Xintiandi employees who joined on or before December 31 of the previous year (excluding Fengcheng and Shui On Construction).

50

SHUI ON LAND LIMITEDOUR PERFORMANCE IN 2023 – CORPORATE GOVERNANCE

Promoting Ethical Practice Awareness
At SOL, we expect all employees to fully grasp and adhere to our Code of Conduct and Business Ethics and to report any breaches
through the designated channels. Our long-established Irregularities Reporting System (or whistleblowing system) enables employees
and business partners to confidentially voice concerns via telephone or email. Plans to review and improve the whistleblowing process’s
transparency and accountability are on the horizon for the next year. Furthermore, our new employees received training sessions on key
ethical practices, totaling approximately 20-30 classes per year. In addition to the formal reporting system, we encourage employees tocommunicate compliance issues through internal channels, such as their direct line managers, Human Resources, or the Legal department.
Our Whistleblowing Policy underscores the safeguarding of whistleblowers: “Persons making appropriate complaints under this policy
are assured of protection against unfair dismissal, victimization or unwarranted disciplinary action, even if the concerns turn out to be
unsubstantiated.” SOL is committed to a no-retaliation policy for employees who report in good faith.
All tips received via the whistleblowing system are reviewed by the Ethics Committee. If a complaint involves senior management, it
can be directed to an exclusive email address accessible solely by the chairman of the Audit and Risk Committee. Other types of reports
are funneled to the chairman of the Ethics Committee, who, along with the Internal Audit and Risk Department, assesses whether anissue pertains to ethics or management. For ethics-related complaints, the Ethics Committee chairman engages with an Internal Audit
representative to conduct an investigation, potentially enlisting support from relevant company resources – including Human Resources,
Legal, Finance and Accounting, Projects, and/or Operations – to thoroughly examine the issue. Following the investigation, the Ethics
Committee reviews the findings and suggests appropriate remedial actions to the Executive Committee (EXCOM) or higher authorities.
Disciplinary actions, if necessary, are determined, and a full report is provided to the Audit and Risk Committee.

Preventing Forced and Child Labor
Our Human Resources, Legal, and the Internal Audit and Risk Department vigilantly ensure compliance with labor laws and regulations,significantly reducing the risk of forced or child labor in our operations. We diligently verify applicants’ IDs to prevent underage hiringand register all employee details on the provincial government website to further mitigate the risk of child labor.
Additionally, we clarify job roles and requirements to all applicants before employment and include clear terms in our contracts regarding
position, location, and remuneration. We also ensure that the labor contract registration date is legal and unambiguous.
Our Supplier Code of Conduct requires partners to avoid forced or child labor in their operations, reinforcing our commitment to ethicallabor practices.

Responsible Marketing
We are dedicated to responsible marketing, adhering to advertising standards and relevant laws in our marketing, advertising, and sales
endeavors. We provide customers with accurate, honest information, steering clear of misleading or deceptive tactics. Our commitment
extends to offering safe, high-quality products and services beneficial to consumers. Internal audits regularly review SOL’s adherence toresponsible marketing policies and ethical promotion.
We conduct annual employee training, focusing on advertising content compliance and analyzing case studies of marketing pitfalls. In
2023, we enhanced this training by inviting government officials to discuss responsible marketing practices. These efforts are part of ourcommitment to maintain the highest ethical marketing standards and foster a transparent, trustworthy business environment.

SUSTAINABILITY REPORT 2023

51

APPENDIX

Climate-related Financial Disclosure
In alignment with the TCFD Recommendations, we have initiated the process to identify, assess, and manage climate-related risks andopportunities, bolstering the resilience of our business, assets, communities, customers, and workforce. Acknowledging the profound
impact climate change can have on real estate investments, we adopt a science-based, pragmatic approach to climate resilience, aiming
to mitigate physical risks such as extreme weather, rising temperatures, and heavy rainfall. In 2023, we collaborated with a third-party
consultant to conduct a climate change physical risk scenario analysis for all development projects and assets under management. The
analysis has enhanced our understanding of physical risks and informed our strategy development to manage these effectively. In orderto maintain an up-to-date understanding of the climate-related risks and opportunities affecting our operations, as well as to develop
appropriate adaptation measures, we are committed to conducting regular climate scenario analyses for our upcoming projects. This
proactive approach allows us to effectively address the impacts of climate change and ensure the sustainability of our operations.

GovernanceAs detailed in this Report’s Corporate Governance section, our 5C Sustainability Strategy’s planning and execution – and the climate-relatedrisks and opportunities it encompasses – originate with our Board. The Board-level Sustainability Committee directly supports the Board
to ensure our 5C Sustainability Strategy is in sync with our business operations. This governance structure underscores the significancewe place on senior leadership’s alignment with sustainability efforts, particularly climate resilience. This year, we unveiled the refreshedversion of our 5C Sustainability Strategy, steering our sustainability endeavors, including decarbonization and climate change adaptation.

Sustainability Governance and Oversight52

The Board of
Directors

Our highest governance body has overall responsibility for our sustainability efforts.

The Board-level
Sustainability
Committee

Comprised of selected company directors who meet regularly to discuss and decide on
sustainability objectives for the long-term development of SOL and stakeholder value creation.
The Committee directly monitors and guides our overall sustainability performance.

Sustainable
Development
Executive
Committee

The Committee, consisted of Executive Directors, Senior Directors, the CEO and the CSO, is
responsible for the strategic direction of sustainability and establishing key long-term targets. It
meets regularly to consider sustainability issues and to make decisions on behalf of the Boardlevel Sustainability Committee, which makes further decisions as necessary.

Chief
Sustainability
Officer

The CSO leads and drives the integration of sustainability principles and practices into the SOL’s
strategy and operations. Embedding sustainability into SOL’s culture and values is also one of the
crucial roles of the CSO.

5C Teams

Responsible for the central steering of SOL’s sustainability strategy, these teams manage the KPIs
for their goals. They meet regularly to drive implementation and address problems that arise.
KPIs are distributed to relevant employees and departments for execution. Each team reports
progress to the Sustainability Committee regularly and provides consolidated reports to the
Audit and Risk Committee for submission to the Board of Directors.

Sustainable
Development
Department

The Department supports the development and implementation of sustainability policies andstrategies by offering technical expertise, coordinating communication and training related tosustainability, both internally and externally, and monitoring the SOL’s progress in achieving its
sustainability goals and targets.

SHUI ON LAND LIMITEDAPPENDIX

Our Board rigorously evaluates risks, including sustainability concerns, reviewing strategies, metrics, targets, internal controls, and remediation
actions to manage and mitigate these risks. We have instituted robust governance structures to capture emerging sustainability issues
effectively at all levels, from the Board and Sustainability Committee to the Sustainable Development Executive Committee, the 5C Teams,
and the Sustainable Development Department. These structures support our Enterprise Risk Management (ERM) and sustainability risk
management strategies, covering risk identification, assessment, communication, reporting, and governance.
Sustainability matters requiring immediate attention are escalated to the Board. Under its guidance, we have integrated sustainability into
our long-term strategy and daily operations. We conduct regular climate-related training, keeping the Board and senior management
informed of latest trends. This year, we engaged external experts to train our board members and senior management on SOL’s exposure tophysical climate risks. To promote sustainable performance, we have linked sustainability KPIs to the remuneration of key figures including
our CEO, CSO, Sustainable Development Executive Committee, and 5C Teams. Recently, we expanded these KPIs to department andproject heads, embedding sustainability in the decision-making and actions across various levels, ensuring a cohesive and accountableapproach to our sustainability objectives.

Risk Management
Our climate scenario analyses have evaluated both the physical and transition risks and opportunities that climate change presents
to our business, informing the development of long-term adaptation and resilience strategies. We have also quantified the potential
financial impacts of these climate-related risks and opportunities on our assets and operations. Going forward, we will persist in fortifying
our response actions to mitigate climate risk exposures effectively through progressively investing in various aspects including but notlimited to enhancing our climate risk analyses, constructing green and healthy buildings, and improving our overall climate resiliencethrough master-planning.

Physical Risks
We have carried out asset-level climate scenario analyses of physical risks using three Shared Socioeconomic Pathways (SSP1-2.6, SSP24.5, and SSP5-8.5) from the Intergovernmental Panel on Climate Change (IPCC) across selected timeframes (2030, 2050, and 2070). Our
analysis took into account six climate hazards: extreme heat, extreme precipitation, riverine flooding, typhoons, drought, and wildfires,
along with sea level rise. We assessed 22 existing assets, which include 14 in Shanghai, one in Nanjing, three in Wuhan, two in Foshan,and two in Chongqing. For precise analysis, each asset was geocoded and aligned with rooftop-level coordinates.
The most pertinent climate hazards for SOL are extreme heat, representing a chronic stress, as well as river flood and extreme precipitation,
which constitutes acute shocks. Below are tables detailing the risk levels13 for the three types of climate hazards faced by the cities where
our assets are situated, projected under various scenarios and timeframes.

13 The risk scores at the city level are calculated as weighted averages of the asset-specific risk scores associated with each city.

SUSTAINABILITY REPORT 2023

53

APPENDIX

Risk Identification Results by City – River Flood
City
Chongqing
FoshanNanjingShanghai
Wuhan

SSP1- 2.6

2030
SSP2- 4.5

SSP5- 8.5

SSP1- 2.6

2050
SSP2- 4.5

SSP5- 8.5

SSP1- 2.6

2070
SSP2- 4.5

SSP5- 8.5

SSP1- 2.6

2070
SSP2- 4.5

SSP5- 8.5

SSP1- 2.6

2070
SSP2- 4.5

SSP5- 8.5

Risk Identification Results by City – Extreme Precipitation
City
Chongqing
FoshanNanjingShanghai
Wuhan

SSP1- 2.6

2030
SSP2- 4.5

SSP5- 8.5

SSP1- 2.6

2050
SSP2- 4.5

SSP5- 8.5

Risk Identification Results by City – Extreme Heat
City
Chongqing
FoshanNanjingShanghai
Wuhan
Low

54

SSP1- 2.6

MediumSHUI ON LAND LIMITED

High

2030
SSP2- 4.5

Very High

SSP5- 8.5

SSP1- 2.6

2050
SSP2- 4.5

SSP5- 8.5

APPENDIX

Assumptions Adopted for the Analysis
SSP scenario-specific assumptions
SSP1-2.6
SSP2-4.5
World of sustainability-focused
growth and equality“Middle of the road” world wheretrends broadly follow their
historical patterns

CO2 emissions
cut to net zeroaround 2050

CO2 emissions
around current
levels until
2050, thenfalling but notreaching net
zero by 2100

Macroeconomic trends
Low GHG
emissions

Estimated warming(2081-2100)
Global GDP
Population growth
Education
Global primaryenergy use by fueltype in 2100
Fossil-fuel prices

Intermediate
GHG emission

SSP5-8.5
World of rapid andunconstrained growth ineconomic output andenergy use

Very high GHG
emissions

CO2 emissions
triple by 2075

1.3 – 2.4°C

2.1 – 3.5°C

3.3 – 5.7°C

High
Low-medium depending on
countryHigh

Medium HighVery highMediumLow-high depending on country

MediumHigh

Gas (217 EJ) and Renewables(181 EJ)

Coal (359 EJ) and Gas (347 EJ)

Coal (888 EJ) and Gas (447 EJ)

LowMediumHigh

The potential financial and operational impacts of the identified pertinent physical hazards include:
Physical Risk
Extreme heat:
More frequent and prolonged heatwaves,along with higher average temperatures

Flooding:
More frequent extreme precipitation andriverine flooding

Potential Financial or Operational Impacts• Increased health and safety risks for workers, tenants, and customers, leading tohigher operating costs related to employee compensation.
• Increased demand for cooling, resulting in higher cooling costs and overall
operating expenses.
• Elevated health and safety risks for construction workers outdoors, potentiallydecreasing productivity and increasing costs due to impacts on the workforce.
• Greater need for robust business continuity planning to ensure the safety ofworkers, tenants, and customers.
• Higher capital expenditures for preventative measures, which could decrease
capital availability for other investments.
• Potential loss of revenue due to operational disruptions and impeded traffic flow
affecting projects.
• Diminished asset values from physical damage to assets and equipment, leading
to potential write-offs and the premature retirement of assets• Reputational damage from delayed project completion and disruptions in the
supply chain, which may lower demand for goods/services and thus reducerevenue.

SUSTAINABILITY REPORT 2023

55

APPENDIX

Based on our analysis, we have pinpointed the top five assets with the highest climate value-at-risk (CVaR) under the SSP5-8.5 scenario
for the year 2070, located in Shanghai, Nanjing, and Wuhan. In light of these findings, the Group has initiated or is considering thefollowing actions:•Integrating climate physical risks into our site selection and design processes.

•

Performing on-site inspections to assess our current defenses against identified physical risks.

•

Evaluating the performance of each asset and seeking the most cost-effective approaches to reduce building maintenance andlifecycle expenses.

•

Fostering long-term partnerships with research institutions to stay abreast of the latest developments in green technology.

•

Adopting “green tenancy” principles in our tenant engagement and management strategies, including the development ofenhanced green leases focusing on energy efficiency and smart technology to lower tenant energy consumption and improvevisibility of energy use during tenancy.

•

Minimizing embodied carbon in building materials for new constructions, which might include exploring 3D printing technology
or using renewable and carbon-sequestering materials such as wood as alternatives to traditional materials like concrete and steel.

•

Revising our climate risk assessment procedures for land acquisition and building design to include features that cope with risingtemperatures, such as shading structures and the installation of energy-efficient hanging fans that provide high air volume at
low wind speeds.

•

Engaging with government authorities as an urban solution provider to bolster community resilience.

Transition Risks
We assess transition risks utilizing the Network for Greening Financial Services (NGFS) Net Zero 2050 scenario. The following table outlines
the transition risks material to our business and their potential financial and operational impacts:
Transition Risk
Carbon pricing and carbon tax:
Higher costs for fuels, energy, andconstruction materials like cement or steel
Building codes and standards:
Stricter mandatory green building codes
or standards

56

SHUI ON LAND LIMITED

Potential Financial or Operational Impacts• Increased operational costs due to carbon taxes or carbon pricing, alongside rising
electricity costs• Higher input costs for carbon-intensive construction materials, such as cement andsteel, which could lead to increased production costs throughout the value chain.
• More rigorous environmental specifications for assets under management,
property development, and new properties, leading to higher costs to adopt andimplement new practices and processes.
• Increased capital expenditures for retrofitting managed assets to meet new
standards• Potential reduction in asset value due to non-compliance with relevant building
codes and standards, resulting in write-offs and the early retirement of assets.

APPENDIX

In response to these findings, the Group has undertaken or is contemplating the following measures:•

Adhering to relevant national standards for building energy efficiency and renewable energy utilization, which includes implementing
energy-saving measures, acquiring energy-efficient equipment, and performing energy audits to ensure compliance.

•

Increasing the use of prefabricated materials in construction to curb carbon emissions during the building process and transportation.

•

Investing in PropTech for construction, such as adopting emerging technologies that utilize battery-powered energy storage
systems to supplant diesel generators, thereby reducing emissions at construction sites.

•

Considering additional recognized building standards that highlight our dedication to climate change preparedness.

As the climate risk landscape evolves, it continues to significantly influence our business operations. We have integrated these risks
into our corporate enterprise risk management (ERM) framework to comprehensively identify sustainability risks. Recognizing both thechallenges and opportunities presented by climate change, we are dedicated to diminishing climate-related impacts and investing inclimate resilience planning.

Strategy
Our strategic timeframes are categorized as follows: the short term encompasses a period of up to three years, aligning with our company’s
financial planning cycle. The medium term spans up to six years, in sync with our science-based targets set for 2030. The long term extends
from the present year, 2023, to 2050, reflecting the enduring nature of our business and supporting the climate action strategies of theChinese Mainland and Hong Kong.
The shift from a carbon-intensive economy to a more carbon-light model is anticipated to unveil a multitude of opportunities for enterprises
such as SOL. Presently, only a fraction of the built environment is equipped for such a transition. We believe our company is strategically
positioned to capitalize on the prospects that climate change may offer in the forthcoming years.
Opportunity
Consumer preference:
Growing client/consumer preference forclimate-resilient and green buildings

Green finance:
More incentives available for funding R&D
or investments in low-carbon operations

Potential Financial or Operational Impacts• Increased market demand and willingness to pay for green and climate-resilient
buildings.
• Enhanced corporate reputation for owning climate-resilient assets and exercisingsound climate-related governance and risk management, leading to a competitiveedge that aligns with shifting consumer preferences and, therefore, potential
revenue growth.
• Heightened interest from investors and financiers, leading to greater capital
availability.
• Reduced cost of capital due to incentives for green finance initiatives.
• Increased adoption of green technologies owing to their improved commercial
viability, resulting in ROI from investments in low-emission technology andenhanced reliability of the supply chain, enabling operations under a variety ofconditions.

In response to these opportunities, the Group is actively considering or has already initiated the following actions:•

Promoting the use of smart applications and technology to facilitate low-carbon living for consumers, including smart lightswitches and sensors.

•

Increasing expenditure on research and development focused on climate change adaptation and resilience.

•

Enhancing the disclosure of climate-related risks and aligning reports with internationally recognized standards to bolster transparency
for investors.

SUSTAINABILITY REPORT 2023

57

APPENDIX

Metrics and Targets
We are committed to achieving net-zero emissions by 2050 across our operations and development projects, guided by thefollowing milestones:
Time Horizon

Targets• Conduct a climate change physical risk scenario analysis at the project level for all
development sites and assets under management.

Progress• Secure approval from the SBTi for our 1.5°C-aligned science-based targets.

2023• Gather emissions data and ensure full disclosure of emissions per the GHG Protocol
Corporate Standard and Corporate Value Chain (Scope 3) Standard.
• Complete a comprehensive climate risk study for an ongoing project.
• Develop climate change adaption strategy against physical risk for new developmentsfrom design to operation stage• Develop climate change physical risk assessment checklist and conduct internal
assessment of all SXTD assets• Review existing transition risk assessment results and consider engaging an external
consultant to further define transitional risk for the company

2024

Progress key:
Not started

Achieved

As the first developer in mainland China to join the SBTi, we are honored to share that our near-term science-based emissions reduction
targets have received SBTi approval. These targets14 include:•

A reduction in Scope 1 and 2 carbon emissions intensity by 62.4% by 2030, using 2019 as the base year.

•

A reduction in Scope 3 carbon emissions intensity from purchased goods and services by 22% from a 2019 base year.

•

A reduction in Scope 3 carbon emissions intensity from downstream leased assets by 22% from a 2019 base year.

We commit to reviewing and, if necessary, recalculating and revalidating our science-based targets at least every five years.
Following the launch of our 5C Sustainability Strategy in 2020, we have already reduced our Scope 1 and 2 carbon emissions intensity by
63%. In addition to our ongoing efforts, we are considering investments in new technologies and seeking partnerships with our businessassociates to advance our goal of achieving carbon neutrality.

14 The targets were derived using a sectoral decarbonization approach.

58

SHUI ON LAND LIMITEDAPPENDIX

The table included herein details our Scope 1 and 2 emissions, along with our Scope 3 emissions for 2022 and 2023. For further details,
please refer to the Appendix: Environmental Performance in this Report.

Scope 1
Carbon emissions from stationary andmobile combustion
Scope 2
Carbon emissions from purchased electricity
Scope 1 & Scope 2 combined
Scope 1 & Scope 2 per square meter of floor area
Scope 3 (tenant emissions)

Unit

2020

2021

2022

2023

kgCO2, equivalent

16,029,391

6,665,586

8,371,500

9,932,098

kgCO2, equivalent
kgCO2, equivalent
kgCO2, equivalent/m2
kgCO2, equivalent

90,328,178
106,311,948
52.91–

76,385,050
83,043,200
42.31–

73,120,531
81,496,441
30.69
99,538,919

81,182,063
91,114,162
33.88
119,749,924

Recognition, Awards and Membership
In 2023, we earned numerous sustainability-related certifications and awards. Most significantly, we were delighted to be recognizedfor our efforts relating to:

Recognition and Major Awards
AWARD
2023 China Social Responsibility Ranking – Environmental
Ecological Contribution Award
ESG Leading Enterprise Awards

AWARDED PROJECT
Shui On LandISSUING ORGANIZATIONYICAIShui On Land2023 Chinese Green and Low-carbon Real Estate (Private
Enterprise) TOP10;2023 China Green Low-carbon Real Estate Index TOP20
Fortune China ESG Influential Listing 2023
2023 IDC Sustainability Spotlight Program – Sustainable
Social Impact
RICS China Awards 2023: Sustainability Achievement of
the Year2023 Carbon Neutrality Excellence Award

Shui On Land

Bloomberg Businessweek/Chinese
EditionGreen Ranking

Shui On Land
Shui On Land

Fortune China
IDC China

Shui On Workx’s Deep
Green Lease Program
Shui On Workx’s Deep
Green Lease Program
Shui On Xintiandi
Shui On Xintiandi

Royal Institution of Chartered Surveyors(RICS)
Green Zero-carbon Festival

2023 Carbon Neutrality Exemplary Enterprise
2023 (Industry) Influential Brand
The 1st CRECCHKI Real Estate ESG Awards GBA 2023:
Outstanding Performance in Liveability (Gold);
Outstanding Performance in Net Zero (Merit);
Outstanding Performance in Green Design (Merit);
Outstanding Performance in Green Building (Merit);
Outstanding Performance in Green Finance (Merit)2022 InnoESG Prize

Shui On Land

Shui On Land

Green Zero-carbon Festival
CFS 12th Finance Summit and 2023
Sustainable Business Conference
China Real Estate Chamber ofCommerce Hong Kong andInternational Chapter

InnoESGSUSTAINABILITY REPORT 2023

59

APPENDIXAWARDRed Dot Award: Brands & Communication Design 2023
2023 ULI Asia Pacific Awards for Excellence
IRA 9th Investor Relations Awards 2023 – Best IR Company(Small Cap)HKIRA 9th Investor Relations Awards 2023 – Best IR by CFOHKIRA 9th Investor Relations Awards 2023 – Best IR by
Chairman/CEO
13th Asian Excellence Award 2023 – Asia’s Best Investor
Relations Company;
13th Asian Excellence Award 2023 – Asia’s Best CSR
13th Asian Excellence Award 2023 – Asia’s Best CFO
13th Asian Excellence Award 2023 – Asia’s Best CEO
MIPIM Asia Awards
Best Hospitality, Tourism and Leisure Project – SilverAward;
Best Retail Project – Gold Award
Best Companies to Work For In Asia 2023
2023 Ding Ge Award – Finance Digital Transformation
Pioneer
ARC Awards 2023

AWARDED PROJECT
Urban Renewal Exhibitionof Foshan Lingnan Tiandi
Xintiandi Plaza
Shui On LandISSUING ORGANIZATIONRed Dot Design

Shui On Land

Urban Land InstituteHong Kong Investor Relations
Association
Hong Kong Investor Relations
Association
Hong Kong Investor Relations
Association
Corporate Governance Asia Magazine

Mr. Douglas Sung
Ms. Jessica Wang
Shanghai Panlong Tiandi

Corporate Governance Asia Magazine
Corporate Governance Asia Magazine
MIPIM

Shui On Land
Shui On Land

HR Asia
Harvard Business Review

Shui On Land
Annual Report 2022

MerComm Inc.

Mr. Douglas Sung
Mr. Vincent Lo

Memberships and Affiliation
NAME OF ORGANIZATION
Shanghai Foreign Investment Association
Shanghai Real Estate Trade Association
Shanghai Services Federation
Chamber of International Commerce Shanghai
China Carbon Neutral Action Alliance
Shanghai Council for Brand Development
Shanghai Public Relations Association

60

SHUI ON LAND LIMITEDNATURE OF MEMBERSHIP
Vice Chairman
Vice Chairman
Vice Chairman
Vice Chairman
Corporate member
Council member
Member unit

APPENDIX

Performance Data Summary15
Relevant figures from past years are disclosed as they were collected or made available. Unless otherwise indicated, data covers Shui On
Land, Shui On Xintiandi, Feng Cheng Property Management and Shui On Construction.

Environmental Performance
Relevant Disclosure

Description

Unit

2020

2021

2022

2023

Scope 1 (Direct emissions)

16,029,391

6,665,586

8,375,910

9,932,098

Stationary and mobile combustion sources

15,983,770

6,658,150

8,371,500

9,932,098

15,773

3,258

–

–

29,848

4,178

4,410

–

90,328,178

76,385,050

73,120,531

81,182,063

106,311,948

83,043,200

81,496,441

91,114,162

kgCO2,equivalent/m

52.91

42.31

30.69

33.88

kgCO2,equivalent––

99,538,919

119,749,924

–

–

52.74

62.27

EmissionsGreenhouse gas emissions16

Fire extinguishers17
kgCO2,equivalent

Refrigerant17
HKEX 1.2;
GRI 305-6

Scope 2 (Location-based energy indirectemissions from purchased electricity)
Scope 1 & Scope 2 combined
Scope 1 & Scope 2 per square meter offloor area18
Scope 3 (Tenant emissions)2

19

Scope 3 (Tenant emissions) per square
metre of floor area

kgCO2,equivalent/m

2

EnergyEnergy consumption and intensity
Natural gas
DieselHKEX A2.1;
GRI 302-1;
GRI 302-3

Gasoline
Electricity purchased from the grid(non-renewable)MWh16,34918,58529,67832,459m3

1,548,873

1,760,772

2,811,754

3,075,238

MWh

536

393

499

489

Litre

12,442

9,118

11,576

11,340

MWh

1,849

1,803

1,817

1,988

Litre

50,50549,251

49,63654,291

106,156

109,882

104,707108,586

MWhElectricity purchased from renewable source

–

5,946

15,921

27,131

124,889

136,609

152,622

170,653

62.16

65.47

57.48

63.45

m3

1,156,125

1,171,225

1,166,466

1,313,503

m /1000m2

679.52585.79439.32488.39m3

1,040,512

1,054,102

1,045,720

1,182,153

kg

–

3,699

3,464

1,350

kg/1,000m2

–

2.04

1.30

0.50

Total discharge of construction waste

29,71130,931

27,136

14,882

Dry garbage

41,764

22,272

22,47321,513

Food waste

21,933

19,934

14,524

14,63563,69743,44939,11639,039Total discharge of non-hazardous waste

93,40774,376

66,24953,901

Recycled materials

3,764

1,239

2,116

2,871

13.42

40.91

24.95

20.04

Total energy consumption
Intensity of energy consumption20

MWh/1000m2

Water
Water consumption and intensity
Total water consumption
HKEX A2.2

Water consumption intensity

21

Sewage discharge

3

Waste
Hazardous waste
HKEX A1.3

Hazardous waste produced
Discharge density of hazardous waste

Non-hazardous waste

HKEX A1.4

Total discharge of household garbage

Discharge density of non-hazardous waste

tonnestonne/1,000m2

15 The calculation methodology of environment and social data is based on the quantitative reporting principle as set out in the HKEX ESG Reporting Guide
16 We adopt an operational control approach to calculate GHG emissions, allowing us to accurately account for emissions stemming from activities over which we have direct influence and control.
17 No fire extinguishers or refrigerant were used in 2023, resulting in no related emissions.
18 The increase in Scope 1 and 2 carbon emissions intensity in 2023 is due to the resumption of business activities following the COVID-19 pandemic.
19 The increase in Scope 3 (tenant emissions) in 2023 is due to the resumption of business activities following the COVID-19 pandemic.
20 The increase in energy consumption intensity in 2023 is due to the resumption of business activities following the COVID-19 pandemic.
21 The increase in water consumption intensity in 2023 is due to the resumption of business activities following the COVID-19 pandemic.

SUSTAINABILITY REPORT 2023

61

APPENDIX

Social Performance
Relevant Disclosure

Description

Unit

2020

2021

2022

2023

1,662

1,683

1,631

1,592

1,479

1,503

1,467

1,462

3,141

3,186

3,098

3,054

–

–

526

556

–

–

582

609

–

–

6

7

–

–

1,102

1,158

876

1,051

1,108

1,165

–

–

1,105

1,036

–

–

885

853

–

–

2

2

–

–

1,988

1,887

2,265

2,135

1,990

1,889

–

–

1,631

1,592

–

–

1,467

1,462

–

–

8

9

–

–

3,090

3.045

3,141

3,186

3,098

3,054

# employees

–

–

–

–

# employees

37

11

–

5

570

521

450

394

# employees

2,206

2,301

2,286

2,330

365

364

362

330

Workforce – General Employment
Employment by gender
Male
Female# employees

Total
Employment by contract type
Permanent contract
Permanent contract by gender  Male  Female# employees

Permanent contract by region  Hong Kong  Mainland China# employees  TotalTemporary contract
Temporary contract by gender  Male  Female# employees

Temporary contract by region  Hong Kong  Mainland China# employees  Total
Employees by employment type
Full time
Full Time by Gender
HKEX B1.1
GRI 2-7
GRI 2-8  Male  Female# employees

Full Time by Region  Hong Kong  Mainland China# employees  TotalPart time
Total22
Non-guaranteed hours
Total23
Total Employees by age group
Under 30 years
30-50 years
Above 50 years
Employment by geographical region
Hong Kong
Mainland China# employees

8

9

8

9

3,133

3,177

3,090

3,045

Employment by employee category
122

41

45

48

Male

–

–

–

26

Female

–

–

–

22

289

96

101

100
49

Senior Management

Middle Management
Male

–

–

–

Female

–

–

–

51

Employees

2,550

3,049

2,952

2,906

Male

–

–

–

1,517

Female

–

–

–

1,389

22 In general SOL does not hire on a part-time basis.
23 We hired non-guaranteed hours employees including interns in 2023.

62

SHUI ON LAND LIMITED# employees

APPENDIX

Relevant Disclosure

Description

Unit

2020

2021

2022

2023

–

–

–

57%

–

–

–

43%

–

–

–

31%

–

–

–

68%

–

–

–

2%

–

–

–

0.2%

–

–

–

99.8%

21%

23%

19%

21%

17%

20%

16%

16%

24%

44%

31%

29%

17%

17%

15%

16%

26%

15%

17%

25%

13%

22%

13%

0%

19%

21%

18%

19%

Workforce – New Hires and Turnover
New employee hires rate by gender
Male%

FemaleNew employee hires rate by age group
GRI 401-1

Under 30 years
30-50 years%

Above 50 years
New employee hires rate by geographical region
Hong Kong%

Mainland China
Employee turnover rate by gender
Male%

FemaleEmployee turnover rate by age group
HKEX B1.2

Under 30 years
30-50 years%

Above 50 years
Employee turnover rate by geographical region
Hong Kong%

Mainland China
Workforce – OHS
Number and rate of workplace fatalities
HKEX B2.1

Workplace fatalities# employees

Rate
HKEX B2.2

1

0

0

1

%

0.03%

0%

0%

0.03%

Days

289

533

159

508

Lost days due to work injury
Lost days due to work injury
Work related injuries
Fatality as a result of work-related injury

GRI 403-9

High-consequence work-related injury(excluding fatalities)

Recordable work-related injury

Cases

1

0

0

1

per 100
employees

–

–

–

0.03

Cases

0

0

0

0

per 100
employees

–

–

–

–

Cases

13

27

13

18

per 100
employees

–

0.85

0.42

0.43

Workforce – Training
Employees trained by gender
Male
FemaleHKEX B3.1

%

94.5%

99.7%

99.8%

99.4%

88.8%

99.8%

99.8%

98.7%

95.9%

73.5%

100%

100%

96.9%

96.9%

100%

99.0%

90.5%

100%

99.8%

99.1%

26.7

20.3

24.0

29.6

16.4

18.3

19.8

26.9

Employees trained by employee category
Senior Management
Middle Management%

Employees
Average training hours completed by gender
Male
FemaleHKEX B3.2

Hours

Average training hours completed by employee category
Senior Management

Hours

16.9

7.5

15.5

19.7

Middle Management

Hours

23.9

16.3

15.7

21.6

Employees

Hours

21.8

19.6

23.3

28.7

SUSTAINABILITY REPORT 2023

63

APPENDIX

Relevant Disclosure

Description

Unit

2020

2021

2022

2023

0%

0%

0%

0%

%

12.50%

22.22%

27.27%

25.00%

87.50%

77.78%

72.73%

75.00%

87.50%

77.78%

72.73%

66.67%

12.50%

22.22%

27.27%

33.33%

18.15%

16.35%

14.53%

12.90%

70.23%

72.22%

73.79%

76.29%

11.62%

11.42%

11.68%

10.81%

52.91%

52.82%

52.65%

52.13%

47.09%

47.18%

47.35%

47.87%

26

34

22

22

75

65

67

62

101

99

89

84

Workforce – Diversity
Diversity of Governance Body and Employee
Diversity of governance body
By age group   Under 30 years old   30-50 years old   Above 50 years old
By gender  MaleGRI 405-1%  Female
Diversity of employee
By age group   Under 30 years old   30-50 years old%

Above 50 years old
By gender  Male%  FemaleWorkforce – Employee Benefits
Parental Leave – employees that took parental leave
Male
Female# employees

Total

Employees that returned to work after parental leave ended that were still employed 12 months after their return to work
GRI 401-3

MaleFemale# employees

Total

26

25

21

14

75

46

54

45

101

71

75

59

100%

96%

105%

67%

100%

61%

93%

85%

100%

79%

84%

80%

Retention rate of employees that took parental leave
Male
Female%Total
Supply Chain – Suppliers
Suppliers by geographical region
From Hong Kong
HKEX B5.1

From China#

From elsewhere

52

52

52

5,172

4,943

5,464

67

67

67

67

4,746

5,291

5,062

5,583

%

100%

100%

100%

100%

Total Charitable Donations (in cash)

RMB

13,419,899

13,310,000

5,038,566

2,073,304

Total hours of employee volunteering contributed

Hours

2,192

3,099

179,924

11,90024

Total
GRI 204-1

52
4,627

Proportion of spending on local suppliers
Products and services purchased locally

Community Investment
Resources Contributed (e.g. money or time) to the Focus Area
HKEX B8.2

Product Responsibility and Customer Satisfaction
Service-related complaints received

HKEX B6.2

Total complaints received

#

285

2,112

2,777

2,960

Complaint handling rate

%

100%

100%

100%

100%

Overall customer satisfaction of the properties

94.7

94.7

93.825

94.9

Residential customer satisfaction

95.1

95.3

95.2

95.8

93.8

94.6

92.6

95.0

95.2

94.2

93.7

94.0

Customer satisfaction

Office building customer satisfaction# out of 100

Shopping mall customer satisfaction

24 The decline in volunteering hours in 2023 might be due to the reduced availability of volunteer opportunities post COVID-19.
25 Overall customer satisfaction of the properties in 2022 has been restated due to typo error.

64

SHUI ON LAND LIMITEDAPPENDIX

Governance Performance
Relevant Disclosure

Description

Unit

2020

2021

2022

2023

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

Anti-corruption
Communication and training about anti-corruption policies and procedures
Communicated about organization’s anti-corruption policies and procedures  Governance Body  Employee

GRI 205-2%  Business Partners
Trained on Organization’s anti-corruption policies and procedures  Governance Body

%

100%

100%

100%

100%

  Employee

%

100%

100%

100%

100%

0

0

0

0

0

0

0

0

Concluded legal gases regarding corrupt practices
Concluded legal cases regarding corrupt
practices brought against the company

HKEX B7.1
HKEX B7.3

Concluded legal cases regarding corrupt
practices brought against any company
employees# of cases

Content GRI Standards, HKEX ESG, SASB and IFRS Content Index
This index provides mapping of the information related to disclosures from the Global Reporting Initiative (GRI) Sustainability ReportingStandards of 2021, Hong Kong Stock Exchange (HKEX) ESG Guide, the Sustainability Accounting Standards Board (SASB) for Real Estate
Sector Disclosure.
GRI Standards/
SASB Standards

HKEX ESG
Guide

Disclosure

Reporting Location

Section cross reference, additional
information or explanation

General Disclosure
GRI 2: General Disclosures 2021 and SASB for Real Estate Sector Disclosure
The organisation and its reporting practices
GRI: 2-1
SASB:
IF-RE-000.A
IF-RE-000.B
IF-RE-000.C
IF-RE-000.D–

Organisational details• About Shui On Land

Please refer to the Business Review sectionin Annual Report.

2-2–

Entities included in theorganisation’s sustainability
reporting• About this Report

–

2-3

–

Reporting period, frequency andcontact point• About this Report

–

2-4

–

Restatements of information• Performance Data Summary

–

2-5

–

External assurance• Assurance Statement–

2-6

KPI B5.1
KPI B5.2
KPI B5.3

Activities, value chain and otherbusiness relationships• Stakeholder Engagement• Community – Sustainable Lifestyles
and Work Solutions• Performance Data Summary – Social
Performance–

2-7

KPI B1.1

Employees• Care• Performance Data Summary – Social
Performance

–

2-8

–

Workers who are not employees

Activities and workers

During the reporting year, SOL did not hire
workers who are not employees including
contractors.

SUSTAINABILITY REPORT 2023

65

APPENDIXGRI Standards/
SASB Standards

HKEX ESG
Guide

Disclosure

Reporting Location

Section cross reference, additional
information or explanation• Approach to Sustainability – 5C
Sustainability Strategy – To Become aPioneer of Sustainable Premium Urban
Communities• Corporate Governance–

Governance

2-9–

Governance structure andcomposition

2-10

–

Nomination and selection of thehighest governance body

• Corporate Governance

–

2-11

–

Chair of the highest governancebody• Corporate Governance

–

2-12

–

Role of the highest governancebody in overseeing themanagement of impacts• Corporate Governance – Sustainable
Governance and Transparency

–

2-13

–

Delegation of responsibility for
managing impacts• Corporate Governance

–

2-14

–

Role of the highest governancebody in sustainability reporting• Approach to Sustainability –Sustainability Governance• Corporate Governance

–

2-15

–

Conflicts of interest• Annual Report – External Corporate
Culture

–

2-16

–

Communication of critical concerns• Corporate Governance – Sustainability
Governance and Transparency

–

2-17

–

Collective knowledge of thehighest governance body

• Corporate Governance – Sustainability
Governance and Transparency

–

2-18

–

Evaluation of the performance ofthe highest governance body

• Corporate governance

–

2-19

–

Remuneration policies• Annual Report – Remuneration
Policies

–

2-20

–

Process to determine remuneration• Annual Report – Remuneration
Committee

–

2-21

–

Annual total compensation ratio–

The information is treated as confidential

Strategy, policies and practices
2-22–Statement on sustainable
development strategy• Chairman’s Message

–

2-23

–

Policy commitments• Corporate Governance – Sustainability
Governance and Transparency

–

2-24

–

Embedding policy commitments• Corporate Governance – Sustainability
Governance and Transparency

–

2-25

–

Processes to remediate negative
impacts• Appendix – Climate-related Financial
Disclosure

–

2-26

–

Mechanisms for seeking advice andraising concerns• Corporate Governance – Highest
Standard of Integrity in our Business
Operation and Supply Chain

–

2-27

–

Compliance with laws andregulations• Content Index

–

2-28

–

Membership associations• Memberships and Affiliations–

Approach to stakeholder
engagement• Approach to Sustainability –Stakeholder Engagement––

Not reported – All of SOL’s employees are in
Chinese Mainland or in Hong Kong where
there is no statutory recognition of collective
bargaining agreements.

Stakeholder engagement
2-29

2-30

66

–

–

SHUI ON LAND LIMITED

Collective bargaining agreements

APPENDIXGRI Standards/
SASB Standards

HKEX ESG
Guide

Disclosure

Reporting Location

Section cross reference, additional
information or explanation

GRI 3: Material Topics 2022
3-1–

Process to determine material
topics• Approach to Sustainability –Materiality

–

3-2

–

List of material topics• Approach to Sustainability –Materiality–

Topic-specific Disclosures
MATERIAL TOPICS – GRI 200 SERIES (ECONOMIC TOPICS)
GRI 201: Economic Performance
3-3

GeneralDisclosure(GD) B8

Discussion of management
approach and related policies• Clean – Decarbonization• Clean – Climate Change Adaptation

–

201-1

KPI B8.2

Direct economic value generated
and distributed• Care – Wellbeing, Health and Safety

–

201-2

KPI A4.1

Financial implications and otherrisks and opportunities due toclimate change• Clean – Climate Change Adaptation

–

201-3

–

Defined benefit plan obligations
and other retirement plans• Care – Wellbeing, Health and Safety–

GRI 203: Indirect Economic Impacts
3-3

GD B8

Discussion of management
approach and related policies• Community

–

203-2

KPI B8.1

Significant indirect economic
impacts• Performance Data Summary – Social
Performance–GRI 204: Procurement Practices, GRI 308: Supplier Environmental Assessment, GRI 414: Supplier Social Assessment and HKEX Aspect B5 Supply Chain Management

3-3

–

GD B5
KPI B5.3

Discussion of management
approach and related policies(Description of practices used to
identify environmental and social
risks along the supply chain, andhow they are implemented andmonitored)• Community – Sustainable Lifestyleand Work Solutions• Performance Data Summary – Social
Performance–

KPI B5.4

Description of practices used
to promote environmentally
preferable products and services
when selecting suppliers, andhow they are implemented andmonitored.

• Approach to Sustainability –Stakeholder Engagement• Community – Sustainable Lifestyles
and Work Solutions–

Proportion of spending on local
suppliers• Performance Data Summary – Social
Performance

–

204-1
308-1
–

New suppliers that were screenedusing environmental criteria

414-1

New suppliers that were screenedusing social criteria

414-2

Negative social impacts in the
supply chain and actions taken–• Community – Sustainable Lifestyles
and Work Solutions––

GRI 205: Anti-corruption

3-3

205-2

GD B7

Discussion of management
approach and related policies• Corporate Governance – Highest
Standard of Integrity in our Business
Operation and Supply Chain• Corporate Governance – Sustainability
Governance and Transparency––

Communication and training
about anti-corruption policies andprocedures• Corporate Governance – Highest
Standard of Integrity in our Business
Operation and Supply Chain• Performance Data Summary – Social
Performance–

SUSTAINABILITY REPORT 2023

67

APPENDIXGRI Standards/
SASB Standards

HKEX ESG
Guide

Disclosure

Reporting Location

205-3

KPI B7.1

Confirmed incidents of corruption
and actions taken (Number ofconcluded legal cases regarding
corrupt practices brought against
the issuer or its employees and theoutcomes of the cases)–

KPI B7.2

Description of preventive measures
and whistle-blowing procedures,
how they are implemented andmonitored.

• Corporate Governance – Highest
Standard of Integrity in our Business
Operation and Supply Chain

KPI B7.3

Description of anti-corruption
training provided to directors andstaff.

• Corporate Governance – Highest
Standard of Integrity in our Business
Operation and Supply Chain•

Performance summary – Social Data

Section cross reference, additional
information or explanation
There were no confirmed incidents ofcorruption during the reporting year, andneither the Company nor its employees
were involved in any legal cases regarding
corrupt practices.

MATERIAL TOPICS – GRI 300 SERIES (ENVIRONMENTAL TOPICS), HKEX ENVIRONMENTAL SUBJECT AREA and SASB for Real Estate Sector Disclosure
GRI 301: Materials
3-3

301-1

GD A2
GD A3

Discussion of management
approach and related policies• Clean–

KPI A2.5

Materials used by weight orvolume (Total packaging material
used for finished products (intonnes) and, if applicable, withreference to per unit produced.)–

Not applicable. The Group mainly provides
real estate development and operation
services which do not involve packaging
materials used for manufactured goods.

–

During the reporting period, we havecomplied with all applicable environmental
laws and regulations related to energy
management, such as;
Chinese Mainland:• Environmental Protection Law of thePeople’s Republic of China• Energy Conservation Law of the People’s
Republic of China

GRI 302: Energy and SASB Real Estate: Energy Management

3-3

68

GD A2
GD A3

Discussion of management
approach and related policies

GRI: 302-1
SASB:
IF-RE-130a.1
IF-RE-130a.2
IF-RE-130a.3

KPI A2.1

Energy consumption within theorganisation• Clean – Decarbonization• Performance Data Summary –Environmental Performance

The energy consumption data covered
100% of the reporting scope. During thereporting year, approximately 15% of ourenergy is procured from renewable source.
For the energy consumption data andlike-for-like percentage change breakdown,please refer to the Performance
Data Summary.

302-4

KPI A2.3

Reduction of energy consumption(Description of energy use
efficiency initiatives and results
achieved.)• Clean – Decarbonization

–

302-3

KPI A2.1

Energy intensity• Clean – Decarbonization• Performance Data Summary –Environmental Performance–

SHUI ON LAND LIMITEDAPPENDIXGRI Standards/
SASB Standards

HKEX ESG
Guide

Disclosure

Reporting Location

Section cross reference, additional
information or explanation

GRI 303: Water and effluents (2018) and SASB Real Estate: Water Management

3-3

GRI: 301-1
SASB:
IF-RE-140a.4

GD A2
GD A3

Discussion of management
approach and related policies• CleanDuring the reporting period, we havecomplied with all applicable environmental
laws and regulations related to water
discharge, such as;
Chinese Mainland:• Soil Pollution Prevention and Control Lawof the People’s Republic of China• Water Pollution Prevention and Control
Law of the People’s Republic of China• Law of the People’s Republic of China
on the Prevention and Control ofEnvironment Pollution Caused by Solid
Wastes• Water Law of the People’s Republic ofChina• Water and Soil Conservation Law of thePeople’s Republic of China
Hong Kong:• Water Pollution Control Ordinance(Cap.358)

KPI A2.5

Interactions with water as ashared resource (Description of
the significant impacts of activities
on the environment and natural
resources and the actions taken to
manage them.)• Clean – Resource Management andCircularity–

GRI: 303-3
SASB:
IF-RE-140a.1
IF-RE-140a.2
IF-RE-140a.3

KPI A2.4

303-5

KPI A2.2

Water withdrawal (Descriptionof whether there is any issue
in sourcing water that is fit for
purpose, water efficiency initiatives
and results achieved.)• Clean – Resource Management andCircularity• Performance Data Summary –Environmental performance

Water consumption (in total
and intensity (e.g. per unit ofproduction volume, per facility).)• Clean – Resource Management andCircularity• Performance Data Summary –Environmental performance

The water consumed by our Group in
Chinese Mainland and Hong Kong comesfrom municipal water supplies. There were
no issues related to sourcing water that wasfit for purpose during the reporting year.
The water withdrawal data covered 100%of the reporting scope. For the water
withdrawal data and like-for-like percentagechange breakdown, please refer to the
Performance Data Summary.
–

SUSTAINABILITY REPORT 2023

69

APPENDIXGRI Standards/
SASB Standards

HKEX ESG
Guide

Disclosure

Reporting Location

Section cross reference, additional
information or explanation

GRI 305: Emissions

3-3
307-1

GD A1
GD A3

Discussion of management
approach and related policies• Clean• Clean – Decarbonization• Content Index

During the reporting period, we havecomplied with all applicable environmental
laws and regulations related to emissions,such asChinese Mainland:• Energy Conservation Law of the People’s
Republic of China• Atmospheric Pollution Prevention andControl Law of the People’s Republic of
China
Hong Kong:• Air Pollution Control Ordinance (Cap.311)• Ozone Layer Protection Ordinance(Cap.403)• Motor Vehicle Idling (Fixed Penalty)
Ordinance (Cap. 611)

305-1

KPI A1.1
KPI A1.2
KPI A1.5

Direct (Scope 1) GHG emissions• Clean – Decarbonization• Performance Data Summary –Environmental Performance

–

305-2

Other Indirect (Scope 2) GHG
emissions• Clean – Decarbonization• Performance Data Summary –Environmental Performance

305-4

GHG emission intensities• Clean – Decarbonization• Performance Data Summary –Environmental Performance

305-5

Reduction of GHG emissions• Clean – Decarbonization

305-7

Nitrogen oxides (NOx), sulfur
oxides (SOx), and other significant
air emissions–

Emissions of NOx, SOx and other air
pollutants are considered not significant inour operations.

GRI 306: Waste (2020)

GD A1
GD A3

Discussion of management
approach and related policies• Clean• Resource Management and Circularity• Content Index

During the reporting period, we havecomplied with all applicable environmental
laws and regulations related to waste
management, such as;
Chinese Mainland:• Law of the People’s Republic of China on
Evaluation of Environmental Effects• Environmental Protection Law of thePeople’s Republic of China• Environmental Protection Tax Law of thePeople’s Republic of China• Soil Pollution Prevention and Control Lawof the People’s Republic of China• Law of the People’s Republic of China
on the Prevention and Control ofEnvironment Pollution Caused by Solid
Wastes• Water and Soil Conservation Law of thePeople’s Republic of China
Hong Kong:• Waste Disposal Ordinance (Cap.354)

306-2

KPI A3.1

Management of significant wasterelated impacts (Description of
the significant impacts of activities
on the environment and natural
resources and the actions taken to
manage them.)• Clean – Resource Management andCircularity• Community – Sustainable Lifestyles
and Work Solutions

–

306-3

KPI A1.3
KPI A1.4

Waste generated (Total hazardousand non-hazardous waste
produced (in tonnes) and, whereappropriate, intensity (e.g. per unitof production volume, per facility).)• Performance Data Summary –Environmental performance• Content Index–

KPI A1.6

Description of how hazardous andnon-hazardous wastes are handled,
reduction initiatives and results
achieved.

• Clean – Resource Management andCircularity

–

3-3

–

70

SHUI ON LAND LIMITEDAPPENDIXGRI Standards/
SASB Standards

HKEX ESG
Guide

Disclosure

Reporting Location

Section cross reference, additional
information or explanation

SASB Real Estate: Management of Tenant Sustainability Impacts–(1) Percentage of new leases that
contain a cost recovery clause forresource efficiency related capital
improvements and (2) associatedleased floor area, by property
subsector• Performance Summary –Environmental data

Our Deep Green Lease contains a
cost recovery clause for resource efficiencyrelated capital improvements. For details
about the lease, please refer to the sectionof Tenant Engagement

IF-RE-410a.2–

Percentage of tenants that are
separately metered or submeteredfor (1) grid electricity consumptionand (2) water withdrawals, byproperty subsector• Performance Summary –Environmental data

100% of our tenants are separately
metered or submetered for grid electricity
consumption and water withdrawals

IF-RE-410a.3–

Discussion of approach tomeasuring, incentivizing, andimproving sustainability impactsof tenants• Clean – Resource Management andCircularity–

IF-RE-410a.1

SASB Real Estate: Climate Change Adaptation
IF-RE-450a.1–

Area of properties located in
100-year flood zones, by property
subsector• Appendix – Climate-related Financial
Disclosure–

IF-RE-450a.2

KPI A4.1

Description of climate change
risk exposure analysis, degree ofsystematic portfolio exposure, andstrategies for mitigating risks• Clean – Climate Change Adaptation• Appendix – Climate-related Financial
Disclosure–

MATERIAL TOPICS – GRI 400 SERIES (SOCIAL TOPICS) and HKEX SOCIAL SUBJECT AREAGRI 401: Employment

3-3
419-1

GD B1

Discussion of management
approach and related policies• Care• Content Index

During the reporting period, we havecomplied with all applicable Labor laws
related to compensation and dismissal,
recruitment, and promotion, working hours,
rest periods, equal opportunity, diversity,
anti-discrimination and other benefits andwelfare, such as;
Chinese Mainland:• Labor Law of the People’s Republic of
China• Labor Contract Law of the People’s
Republic of China• Employment Promotion Law of thePeople’s Republic of China• Social Insurance Law of the People’s
Republic of China• Trade Union Law of the People’s Republicof China• Labor Dispute Mediation and Arbitration
Law of the People’s Republic of China• Law of the People’s Republic of China on
the Protection of Women’s Rights andInterests
Hong Kong:• Employment Ordinance (Cap. 57)

401-1

KPI B1.2

New employee hires andemployment turnover• Performance Data Summary – Social
Performance

–

401-2

–

Benefits provided to full-time
employees that are not provided totemporary or part-time employee• Care – Wellbeing, Health and Safety

–

401-3

–

Parental leave• Care – Wellbeing, Health and Safety• Performance Data Summary – Social
Performance–

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APPENDIXGRI Standards/
SASB Standards

HKEX ESG
Guide

Disclosure

Reporting Location

Section cross reference, additional
information or explanation

GRI 403: Occupational Health & Safety (2018)

GD B2
KPI B2.3

Discussion of management
approach and related policies(Description of occupational healthand safety measures adopted, andhow they are implemented andmonitored.)• Care – Wellbeing, Health and Safety• Performance Data Summary – Social
Performance

During the reporting period, we havecomplied with all applicable laws related tooccupational health and safety, such as;
Chinese Mainland:• Law of the People’s Republic of China on
Work Safety• Law of the People’s Republic of China on
Prevention and Control of Occupational
DiseasesHong Kong:• Occupational Safety and HealthOrdinance (Cap. 509)

403-9
403-10KPI B2.1

Work-related injuries andWork-related ill health (Typesof injury and rates of injury,
occupational diseases, lost days,
and absenteeism, and number ofwork-related fatalities)• Care – Wellbeing, Health and Safety• Performance Data Summary – Social
Performance––

KPI B2.2

Lost days due to work injury• Performance Data Summary – Social
Performance

–

403-8

–

Workers covered by an
occupational health and safety
management system• Care – Wellbeing, Health and Safety

–

3-3
403-1
419-1

GRI 404: Training and Education and HKEX Aspect B3 Development and Training

GD B3

Discussion of management
approach and related policies(Programs for upgrading employee
skills and transition assistanceprograms)• Care – Talent Development––

KPI B3.1

The percentage of employees
trained by gender and employee
category• Performance Data Summary – Social
Performance

–

404-1

KPI B3.2

Average hours of training per year
per employee• Performance Data Summary – Social
Performance

–

3-3
404-2

GRI 405: Diversity and Equal Opportunity
3-3
419-1

GD B1

Discussion of management
approach and related policies• Care• Care – Diversity and Inclusion

–

405-1

KPI B1.1

Diversity of governance bodies
and employees (total number of
employees by age group)• Care – Diversity and Inclusion• Performance Data Summary – Social
Performance–

GRI 408: Child Labor and GRI 409: Forced or Compulsory Labor and HKEX Aspect B4: Labor Standards

72

3-3
419-1

GD B4

Discussion of management
approach and related policies• Corporate Governance – Highest
Standard of Integrity in our Business
Operation and Supply Chain

During the reporting period, we havecomplied with all applicable laws andregulations related to prevention of childand forced Labor, such as• Labor Law of the People’s Republic ofChina• Law of the People’s Republic of China on
the Protection of Women’s Rights andInterests• Law of the People’s Republic of China on
the Protection of Minors• Regulations on the Prohibition of ChildLabor• Notice on the Prohibition of Child Labor

408-1
409-1

KPI B4.1
KPI B4.2

Operations and suppliers at
significant risk for incidents of child
Labor (Description of measures toreview employment practices toavoid child and forced Labor.)• Corporate Governance – Highest
Standard of Integrity in Our Business
Operation and Supply Chain–

SHUI ON LAND LIMITEDAPPENDIXGRI Standards/
SASB Standards

HKEX ESG
Guide

Disclosure

Reporting Location

Section cross reference, additional
information or explanation

GRI 416: Customer Health and Safety and GRI 418: Customer Privacy and HKEX Aspect B6 Product Responsibility• Community – Sustainable Lifestyles
and Work Solutions• Content Index

During the reporting period, we havecomplied with all applicable laws andregulations related to product responsibility,
such as;• Advertising Law of the People’s Republicof China• Provisions on the Release of Real Estate
Advertisements• Real Estate Sales Management Measures• General Principles of the Civil Law of thePeople’s Republic of China• Public Security Administration
Punishments Law of the People’s
Republic of China• Law of the People’s Republic of China on
the Protection of Consumer Rights andInterests• Trademark Law of the People’s Republicof China• Patent Law of the People’s Republic ofChina

KPI B6.1

Percentage of total products soldor shipped subject to recalls forsafety and health reasons.

• Content Index

Not an applicable material topic. The Group
mainly provides real estate development
and operation services, not involving
product recalls.

418-1

KPI B6.2

Substantiated complaints
concerning breaches of customer
privacy and losses of customer
data (Number of products andservice-related complaints received
and how they are dealt with.)• Performance Data Summary – Social
Performance––

KPI B6.3

Description of practices relating
to observing and protecting
intellectual property rights.

–

Not an applicable material topic–

KPI B6.4

Description of quality assurance
process and recall procedures.

–

Not an applicable material topic

3-3
416-2

–

GD B6
KPI B6.5

Discussion of management
approach and related policies(Incidents of non-complianceconcerning the health and safety
impacts of products and services)

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APPENDIX

This index provides mapping of our climate disclosures based on the International Financial Reporting Standards (IFRS) S2 Climaterelated Disclosures.
Disclosure Description

Reporting Location

Governance(5)

The objective of climate-related financial disclosures on governance is to enable users of general purpose financial reports
to understand the governance processes, controls and procedures an entity uses to monitor, manage and oversee climaterelated risks and opportunities.

(6)

To achieve this objective, an entity shall disclose information about:(a)the governance body(s) (which can include a board, committee or equivalent body charged with governance) or
individual(s) responsible for oversight of climate-related risks and opportunities. Specifically, the entity shall identify thatbody(s) or individual(s) and disclose information about:(i)

how responsibilities for climate-related risks and opportunities are reflected in the terms of reference, mandates, roledescriptions and other related policies applicable to that body(s) or individual(s);Climate-related Financial Disclosure– Governance(ii)

how the body(s) or individual(s) determines whether appropriate skills and competencies are available or will be
developed to oversee strategies designed to respond to climate related risks and opportunities;

Climate-related Financial Disclosure– Governance(iii) how and how often the body(s) or individual(s) is informed about climate-related risks and opportunities;(iv) how the body(s) or individual(s) takes into account climaterelated risks and opportunities when overseeing theentity’s strategy, its decisions on major transactions and its risk management processes and related policies, including
whether the body(s) or individual(s) has considered trade-offs associated with those risks and opportunities; and(v)

how the body(s) or individual(s) oversees the setting of targets related to climate-related risks and opportunities, andmonitors progress towards those targets, including whether and how related performance metrics are included inremuneration policies.

Clean – Climate Change Adaptation
Climate-related Financial Disclosure
Climate-related Financial Disclosure
Climate-related Financial Disclosure– Governance(b) management’s role in the governance processes, controls and procedures used to monitor, manage, and oversee climaterelated risks and opportunities, including information about:(i)whether the role is delegated to a specific management-level position or management-level committee and how
oversight is exercised over that position or committee; andClimate-related Financial Disclosure– Governance(ii)

whether management uses controls and procedures to support the oversight of climate-related risks andopportunities and, if so, how these controls and procedures are integrated with other internal functions.

Climate-related Financial Disclosure– Governance
Climate-related Financial Disclosure– Risk management

Strategy(8)

The objective of climate-related financial disclosures on strategy is to enable users of general purpose financial reports tounderstand an entity’s strategy for managing climate-related risks and opportunities.

(9)

Specifically, an entity shall disclose information to enable users of general purpose financial reports to understand:(a)the climate-related risks and opportunities that could reasonably be expected to affect the entity’s prospects;(b) the current and anticipated effects of those climate-related risks and opportunities on the entity’s business model andvalue chain;(c)

See the reference for paragraphs
10-12
See the reference for paragraph 13

the effects of those climate-related risks and opportunities on the entity’s strategy and decision-making, including
information about its climate-related transition plan;

See the reference for paragraph 14(d) the effects of those climate-related risks and opportunities on the entity’s financial position, financial performance andcash flows for the reporting period, and their anticipated effects on the entity’s financial position, financial performanceand cash flows over the short, medium and long term, taking into consideration how those climate-related risks andopportunities have been factored into the entity’s financial planning; andSee the reference for paragraphs
15-21

(e)

the climate resilience of the entity’s strategy and its business model to climate-related changes, developments anduncertainties, taking into consideration the entity’s identified climate-related risks and opportunities.

See the reference for paragraph 22

Climate-related risks and opportunities(10) An entity shall disclose information that enables users of general purpose financial reports to understand the climate-relatedrisks and opportunities that could reasonably be expected to affect the entity’s prospects. Specifically, the entity shall:(a)describe climate-related risks and opportunities that could reasonably be expected to affect the entity’s prospects;

Climate-related Financial Disclosure– Risk Management
Climate-related Financial Disclosure– Strategy(b) explain, for each climate-related risk the entity has identified, whether the entity considers the risk to be a climate-related
physical risk or climate-related transition risk;

Climate-related Financial Disclosure– Risk Management(c)

Climate-related Financial Disclosure– Risk Management

specify, for each climate-related risk and opportunity the entity has identified, over which time horizons – short, medium orlong term – the effects of each climate-related risk and opportunity could reasonably be expected to occur; and(d) explain how the entity defines ‘short term’, ‘medium term’ and ‘long term’ and how these definitions are linked to theplanning horizons used by the entity for strategic decision-making.

74

SHUI ON LAND LIMITED

Climate-related Financial Disclosure– Strategy

APPENDIX

Disclosure Description

Reporting Location(11) In identifying the climate-related risks and opportunities that could reasonably be expected to affect an entity’s prospects,
the entity shall use all reasonable and supportable information that is available to the entity at the reporting date without
undue cost or effort, including information about past events, current conditions and forecasts of future conditions.

Climate-related Financial Disclosure– Risk Management
Climate-related Financial Disclosure– Strategy(12) In identifying the climate-related risks and opportunities that could reasonably be expected to affect an entity’s prospects,
the entity shall refer to and consider the applicability of the industry-based disclosure topics defined in the Industry-based
Guidance on Implementing IFRS S2.

Appendix – GRI Standards, HKEXESG, SASB and IFRS Content Index

Business model and value chain(13) An entity shall disclose information that enables users of general purpose financial reports to understand the current andanticipated effects of climate-related risks and opportunities on the entity’s business model and value chain. Specifically,
the entity shall disclose:(a)a description of the current and anticipated effects of climate-related risks and opportunities on the entity’s businessmodel and value chain; and(b) a description of where in the entity’s business model and value chain climate-related risks and opportunities areconcentrated (for example, geographical areas, facilities and types of assets).

Climate-related Financial Disclosure– Risk Management
Climate-related Financial Disclosure– Risk Management

Strategy and decision-making(14) An entity shall disclose information that enables users of general purpose financial reports to understand the effects ofclimate-related risks and opportunities on its strategy and decision-making. Specifically, the entity shall disclose:(a)information about how the entity has responded to, and plans to respond to, climate-related risks and opportunities in
its strategy and decision-making, including how the entity plans to achieve any climate-related targets it has set and any
targets it is required to meet by law or regulation. Specifically, the entity shall disclose information about:(i)current and anticipated changes to the entity’s business model, including its resource allocation, to address climaterelated risks and opportunities

Climate-related Financial Disclosure– Risk Management
Climate-related Financial Disclosure– Strategy(ii)

current and anticipated direct mitigation and adaptation efforts

Climate-related Financial Disclosure– Risk Management
Climate-related Financial Disclosure– Strategy(iii) current and anticipated indirect mitigation and adaptation efforts

Climate-related Financial Disclosure– Risk Management
Climate-related Financial Disclosure– Strategy(iv) any climate-related transition plan the entity has, including information about key assumptions used in developing its
transition plan, and dependencies on which the entity’s transition plan relies; andClimate-related Financial Disclosure– Risk Management(v)

how the entity plans to achieve any climate-related targets, including any greenhouse gas emissions targets.

See the reference for paragraphs
33-36(b) information about how the entity is resourcing, and plans to resource, the activities disclosed in accordance with paragraph14(a).

See the reference for paragraph
14(a)

(c)

See the reference for paragraph
14(a)quantitative and qualitative information about the progress of plans disclosed in previous reporting periods in accordancewith paragraph 14(a).

Financial position, financial performance and cash flows(15) An entity shall disclose information that enables users of general purpose financial reports to understand:(a)the effects of climate-related risks and opportunities on the entity’s financial position, financial performance and cash flows
for the reporting period (current financial effects); and(b) the anticipated effects of climate-related risks and opportunities on the entity’s financial position, financial performanceand cash flows over the short, medium and long term, taking into consideration how climate-related risks andopportunities are included in the entity’s financial planning (anticipated financial effects).

See the reference for paragraph 16
See the reference for paragraph 16(16) Specifically, an entity shall disclose quantitative and qualitative information about:(c)

how the entity expects its financial position to change over the short, medium and long term, given its strategy to manage
climate-related risks and opportunities, taking into consideration:(i)

its investment and disposal plans, including plans the entity is not contractually committed to; andClimate-related Financial Disclosure– Strategy(ii)

its planned sources of funding to implement its strategy; andCorporate Governance – Sustainable
Governance and Transparency(d) how the entity expects its financial performance and cash flows to change over the short, medium and long term, given its
strategy to manage climate-related risks and opportunities.

Climate-related Financial Disclosure– Risk Management
Climate-related Financial Disclosure– Strategy(18) In preparing disclosures about the anticipated financial effects of a climate-related risk or opportunity, an entity shall:(a)

use all reasonable and supportable information that is available to the entity at the reporting date without undue cost oreffort; and(b) use an approach that is commensurate with the skills, capabilities and resources that are available to the entity for
preparing those disclosures

Climate-related Financial Disclosure– Risk Management
Climate-related Financial Disclosure
Climate-related Financial
Disclosure–Governance

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APPENDIX

Disclosure Description

Reporting Location

Climate resilience(22) An entity shall disclose information that enables users of general purpose financial reports to understand the resilienceof the entity’s strategy and business model to climate-related changes, developments and uncertainties, taking into
consideration the entity’s identified climate-related risks and opportunities. The entity shall use climate-related scenario
analysis to assess its climate resilience using an approach that is commensurate with the entity’s circumstances. In
providing quantitative information, the entity may disclose a single amount or a range. Specifically, the entity shall disclose:(a)the entity’s assessment of its climate resilience as at the reporting date, which shall enable users of general purpose
financial reports to understand:(i)

the implications, if any, of the entity’s assessment for its strategy and business model, including how the entity would
need to respond to the effects identified in the climate-related scenario analysis;

Climate-related Financial Disclosure– Risk Management
Climate-related Financial Disclosure– Strategy(ii)

the significant areas of uncertainty considered in the entity’s assessment of its climate resilience;

Climate-related Financial Disclosure– Risk Management(iii) the entity’s capacity to adjust or adapt its strategy and business model to climate change over the short, medium andlong term, including;1.

the availability of, and flexibility in, the entity’s existing financial resources to respond to the effects identified in
the climate-related scenario analysis, including to address climate-related risks and to take advantage of climaterelated opportunities;

Climate-related Financial Disclosure– Strategy

2.

the entity’s ability to redeploy, repurpose, upgrade or decommission existing assets; andClean – Decarbonization3.

the effect of the entity’s current and planned investments in climate-related mitigation, adaptation andopportunities for climate resilience; andClean – Healthy Communities andBuildings(b) how and when the climate-related scenario analysis was carried out, including:(i)information about the inputs the entity used, including:
1.
2.
3.
4.
5.
6.
7.

(ii)

which climate-related scenarios the entity used for the analysis and the sources of those scenarios;
whether the analysis included a diverse range of climate-related scenarios;
whether the climate-related scenarios used for the analysis are associated with climate-related transition risks or
climate-related physical risks;
whether the entity used, among its scenarios, a climaterelated scenario aligned with the latest international
agreement on climate change;
why the entity decided that its chosen climate-related scenarios are relevant to assessing its resilience to climaterelated changes, developments or uncertainties;
the time horizons the entity used in the analysis; andwhat scope of operations the entity used in the analysis

Clean – Climate Change Adaptation
Climate-related Financial Disclosure– Risk Management

the key assumptions the entity made in the analysis, including assumptions about:
1.
2.
3.
4.
5.

climate-related policies in the jurisdictions in which the entity operates;
macroeconomic trends;
national- or regional-level variables (for example, local weather patterns, demographics, land use, infrastructure
and availability of natural resources);
energy usage and mix; anddevelopments in technology; and(iii) the reporting period in which the climate-related scenario analysis was carried out.
(23) In preparing disclosures to meet the requirements in paragraphs 13-22, an entity shall refer to and consider theapplicability of cross-industry metric categories and industry-based metrics associated with disclosure topics defined in the
Industry-based Guidance on Implementing IFRS S2.

Climate-related Financial Disclosure– Risk Management

Climate-related Financial Disclosure
See the reference for paragraphs
29 and 32

Risk management(24) The objective of climate-related financial disclosures on risk management is to enable users of general purpose financial
reports to understand an entity’s processes to identify, assess, prioritize and monitor climate-related risks and opportunities,
including whether and how those processes are integrated into and inform the entity’s overall risk management process.

Climate-related Financial Disclosure– Risk Management(25) To achieve this objective, an entity shall disclose information about:(a)the processes and related policies the entity uses to identify, assess, prioritize and monitor climate-related risks, including
information about:(i)

the inputs and parameters the entity uses (for example, information about data sources and the scope of operations
covered in the processes);

Climate-related Financial Disclosure– Risk Management(ii)

whether and how the entity uses climate-related scenario analysis to inform its identification of climate-related risks;

Climate-related Financial Disclosure– Risk Management(iii) how the entity assesses the nature, likelihood and magnitude of the effects of those risks (for example, whether theentity considers qualitative factors, quantitative thresholds or other criteria);

Climate-related Financial Disclosure– Risk Management(iv) whether and how the entity prioritizes climate-related risks relative to other types of risk;

Materiality(v)

Corporate Governance – Emergency
Preparation and Risk Mitigation
Climate-related Financial Disclosure– Risk Management

how the entity monitors climate-related risks; and(vi) whether and how the entity has changed the processes it uses compared with the previous reporting period;

76

SHUI ON LAND LIMITED

Climate-related Financial Disclosure

APPENDIX

Disclosure Description

Reporting Location(b) the processes the entity uses to identify, assess, prioritize and monitor climate-related opportunities, including information
about whether and how the entity uses climate-related scenario analysis to inform its identification of climate-related
opportunities; andClimate-related Financial Disclosure– Risk Management
Climate-related Financial Disclosure– Strategy(c)Corporate Governance –Sustainability Governance andTransparency

the extent to which, and how, the processes for identifying, assessing, prioritizing and monitoring climate-related risks andopportunities are integrated into and inform the entity’s overall risk management process

Metrics and targets(27) The objective of climate-related financial disclosures on metrics and targets is to enable users of general purpose financial
reports to understand an entity’s performance in relation to its climate-related risks and opportunities, including progress
towards any climate-related targets it has set, and any targets it is required to meet by law or regulation.
(28) To achieve this objective, an entity shall disclose:(a)information relevant to the cross-industry metric categories;(b) industry-based metrics that are associated with particular business models, activities or other common features thatcharacterize participation in an industry; and(c)targets set by the entity, and any targets it is required to meet by law or regulation, to mitigate or adapt to climate-relatedrisks or take advantage of climate-related opportunities, including metrics used by the governance body or management
to measure progress towards these targets.

See the reference for paragraphs
29-31
See the reference for paragraph 32
See the reference for paragraphs
33-37

Climate-related metrics(29) An entity shall disclose information relevant to the cross-industry metric categories of:(a)greenhouse gases – the entity shall:(i)disclose its absolute gross greenhouse gas emissions generated during the reporting period, expressed as metrictonnes of CO2 equivalent, classified as:
1.
2.
3.

(ii)

Scope 1 greenhouse gas emissions;
Scope 2 greenhouse gas emissions; andScope 3 greenhouse gas emissions;

measure its greenhouse gas emissions in accordance with the Greenhouse Gas Protocol: A Corporate Accounting andReporting Standard (2004) unless required by a jurisdictional authority or an exchange on which the entity is listed touse a different method for measuring its greenhouse gas emissions;

Climate-related Financial Disclosure– Metrics and Targets
Performance Data Summary –Environmental Performance
Climate-related Financial Disclosure– Metrics and Targets(iii) disclose the approach it uses to measure its greenhouse gas emissions including:
1.
2.
3.

the measurement approach, inputs and assumptions the entity uses to measure its greenhouse gas emissions;the reason why the entity has chosen the measurement approach, inputs and assumptions it uses to measure its
greenhouse gas emissions; andany changes the entity made to the measurement approach, inputs and assumptions during the reporting
period and the reasons for those changes;(vi) disclose the approach it uses to measure its greenhouse gas emissions including:1.

(c)

the categories included within the entity’s measure of Scope 3 greenhouse gas emissions, in accordance with
the Scope 3 categories described in the Greenhouse Gas Protocol Corporate Value Chain (Scope 3) Accounting
and Reporting Standard (2011);

climate-related physical risks—the amount and percentage of assets or business activities vulnerable to climate-related
physical risks;

Performance Data Summary –Environmental Performance
Climate-related Financial Disclosure– Metrics and Targets
Performance Data Summary –Environmental Performance
Climate-related Financial Disclosure– Risk Management(g) remuneration – the entity shall disclose:(i)a description of whether and how climate-related considerations are factored into executive remuneration; and(32) An entity shall disclose industry-based metrics that are associated with one or more particular business models, activities
or other common features that characterize participation in an industry. In determining the industry-based metrics thatthe entity discloses, the entity shall refer to and consider the applicability of the industry-based metrics associated withdisclosure topics described in the Industry-based Guidance on Implementing IFRS S2.

Corporate Governance –Sustainability Governance andTransparency
Climate-related Financial Disclosure– GovernanceContent GRI Standards, HKEX ESG,SASB and IFRS Content Index

SUSTAINABILITY REPORT 2023

77

APPENDIX

Disclosure Description

Reporting Location

Climate-related targets(33) An entity shall disclose the quantitative and qualitative climate-related targets it has set to monitor progress towards
achieving its strategic goals, and any targets it is required to meet by law or regulation, including any greenhouse gas
emissions targets. For each target, the entity shall disclose:(a)the metric used to set the target;(b) the objective of the target;(c)

the part of the entity to which the target applies;(d) the period over which the target applies;(e)the base period from which progress is measured;(f )any milestones and interim targets;

Climate-related Financial Disclosure– Metrics and Targets(g) if the target is quantitative, whether it is an absolute target or an intensity target; and(h) how the latest international agreement on climate change, including jurisdictional commitments that arise from thatagreement, has informed the target.
(34) An entity shall disclose information about its approach to setting and reviewing each target, and how it monitors progressagainst each target, including:(a)whether the target and the methodology for setting the target has been validated by a third party;(b) the entity’s processes for reviewing the target;(c)the metrics used to monitor progress towards reaching the target; andClean – Decarbonization
Climate-related Financial Disclosure– Metrics and Targets(d) any revisions to the target and an explanation for those revisions.
(35) An entity shall disclose information about its performance against each climate-related target and an analysis of trends orchanges in the entity’s performance.

Clean – Decarbonization
Climate-related Financial Disclosure– Metrics and Targets
Performance Data Summary –Environmental Performance(36) For each greenhouse gas emissions target disclosed in accordance with paragraphs 33-35, an entity shall disclose:(a)which greenhouse gases are covered by the target.

(b) whether Scope 1, Scope 2 or Scope 3 greenhouse gas emissions are covered by the target.
(c)whether the target is a gross greenhouse gas emissions target or net greenhouse gas emissions target. If the entity
discloses a net greenhouse gas emissions target, the entity is also required to separately disclose its associated grossgreenhouse gas emissions target.

(d) whether the target was derived using a sectoral decarbonisation approach.
(e)

Clean – Decarbonization
Climate-related Financial Disclosure– Metrics and Targets

the entity’s planned use of carbon credits to offset greenhouse gas emissions to achieve any net greenhouse gas emissions
target. The entity shall disclose information including:(i)the extent to which, and how, achieving any net greenhouse gas emissions target relies on the use of carbon credits;(37) In identifying and disclosing the metrics used to set and monitor progress towards reaching a target described inparagraphs 33-34, an entity shall refer to and consider the applicability of cross-industry metrics and industry-based
metrics, including those described in an applicable IFRS Sustainability Disclosure Standard, or metrics that otherwise satisfy
the requirements in IFRS S1.

78

Climate-related Financial Disclosure– Metrics and Targets
Climate-related Financial Disclosure– Metrics and Targets

SHUI ON LAND LIMITED

Clean – Decarbonization
See the reference for paragraph 29
and 32APPENDIX

Verification Statement
Scope and Objective
Hong Kong Quality Assurance Agency (“HKQAA”) has been engaged by Shui On Land Limited (“SOL”) to undertake an independent
verification of its “2023 Sustainability Report” (“the Report”). The Report stated the sustainability performance of SOL for the period from
1st January 2023 to 31st December 2023.
The aim of this verification is to provide reasonable assurance of the reliability of the report contents. The Report has been prepared inaccordance with the Appendix C2 “Environmental, Social and Governance Reporting Guide” (“ESG Reporting Guide”) of the Main Board
Listing Rules of The Stock Exchange of Hong Kong Limited (“HKEx”). The Report also references selected disclosures, or parts of theircontent, from the Global Reporting Initiative’s (“GRI”) Standards 2021, the Sustainability Accounting Standards Board for Real Estate Sector
Disclosure (“SASB”), the Task Force on Climate-related Financial Disclosures (“TCFD”) recommendations and the International Sustainability
Standards Board (“ISSB”) IFRS S2 Climate-related Disclosures (“IFRS S2”).

Level of Assurance and Methodology
The process applied in this verification was based on the “International Standard on Assurance Engagements 3000 (Revised), Assurance
Engagements Other Than Audits or Reviews of Historical Financial Information issued by the International Auditing and AssuranceStandards Board”. Our evidence-gathering process was designed to obtain a reasonable level of assurance as set out in the standard forthe purpose of devising the verification conclusion. The extent of this verification process covered the criteria set in the ESG Reporting
Guide, GRI Standards 2021, SASB Standards, TCFD Recommendations and IFRS S2.
The verification process included verifying information relevant to reporting and management procedures, including stakeholder
engagement methods and results and materiality assessment processes. In addition, system and process for collecting, collating andreporting sustainability performance data were verified. Raw data and supporting evidence of the selected representative samples werealso thoroughly examined during the verification process.

Independence
SOL is responsible for the collection and presentation of the information presented. HKQAA did not involve in the collection and calculationof data or the compilation of the reporting contents. Our verification activities are independent from SOL. There was no relationshipbetween HKQAA and SOL that would affect the independence and impartiality of HKQAA for providing the verification service. HKQAA’s
Code of Conduct regarding integrity, impartiality and confidentiality has been strictly followed.

Conclusion
Based on the verification results, HKQAA has obtained reasonable assurance and is of the opinion that:• The Report has been prepared in accordance with ESG Reporting Guide, and in reference to the GRI Standards 2021, SASB Standards,
TCFD Recommendations and IFRS S2;• The Report illustrates the sustainability performance of SOL in a balanced, comparable, clear, consistent and timely manner; and• The data and information disclosed in the Report are accurate, reliable and complete.
Nothing has come to HKQAA’s attention that the selected sustainability performance information and data contained in the Report
have not been prepared and presented fairly and honestly, in material aspects, in accordance with the verification criteria. In conclusion,
the Report reflects truthfully the sustainability commitments, stewardship and performance of SOL, and discloses transparently theirsustainability performance that is commensurate with their sustainability context and materiality.
Signed on behalf of Hong Kong Quality Assurance Agency

K T Ting
Chief Operating Officer
March 2024
SUSTAINABILITY REPORT 2023

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