SUSTAINABLE DEVELOPMENT Hang Lung is committed to embedding an unwavering culture of sustainability across its business operations and value chain. In 2020, we joined efforts across borders to curb the impact of COVID-19 on our valued employees, customers, and communities. We also established a set of ambitious, long-term sustainability goals and targets to be achieved by 2030. Our key priority is to become a sustainability leader in the real estate industry over the next ten years and beyond. Reporting Approach and Standards greater detail. The sustainability report will follow the The Sustainable Development section of this report Global Reporting Initiative (GRI) Standards and the briefly summarizes the Company’s new sustainability “mandatory disclosure requirements” and “comply framework, goals, targets, and performance in 2020. and explain” provisions of the ESG Reporting Guide Our standalone Sustainability Report 2020 will disclose in Appendix 27 of the Listing Rules. our sustainability policies, metrics, and performance in s ion lat re y it n u S m a fe m , o g c CLIMATE RESOURCE r B Y d e RESILIENCE MANAGEMENT e U N n a n , I , L A a e D P c n n d M I a N h n O e r G a C e l v t h o y g , s p m SUSTAINABILITY a a c e LEADERSHIP e t g n o r t S SUSTAINABLE WELLBEING TRANSACTIONS CU R Coll STOME act aboration and imp Hang Lung Properties Limited 92 SUSTAINABLE DEVELOPMENT Sustainability Priorities, Goals, endorsed a new framework comprising four priorities. and Targets In November 2020, the Boards approved four goals and ten targets within the framework for the end of In 2019, following consultation with our stakeholders 2030. The new goals and targets will escalate and and benchmarking against our peers globally, we refine our sustainability drive across the next decade. updated our sustainability framework to incorporate The priorities, goals, and targets are summarized several improvements. In January 2020, the Boards of below. Hang Lung Group and Hang Lung Properties Climate Resource Wellbeing Sustainable Resilience Management Transactions 2030 GOALS Reduce carbon Accelerate the Ensure employees, Collaborate with all footprint in line with transition to a circular customers, and suppliers and climate science economy by communities enjoy an customers to advance minimizing resource unrivalled environment our sustainability consumption and that promotes their priorities maximizing recycling health and wellbeing 2030 TARGETS • Demonstrate best • Incorporate circular • Assess wellbeing for • Implement supplier efforts to achieve a building principles in all employees and evaluation and 70% reduction in new properties key customers ranking system scopes 1 and 2 • Implement water • Meet or exceed • Engage all tenants greenhouse gas management wellbeing standards on emissions emissions intensity program in all for new properties reduction, resource (per m2), compared properties • Work with youth on management, to 2018 baseline • Divert 90% of waste sustainability and wellbeing • Build a nearly net from landfills solutions in all cities enhancement zero carbon building where we have assets To formalize board oversight of sustainability issues and Management of Environmental, Social, and and progress with sustainability goals and targets, Governance Issues in November 2020, which was the Boards of Hang Lung Group and Hang Lung prepared following the Listing Rules. Properties approved the Joint Statement on Oversight 93 2020 Annual Report SUSTAINABLE DEVELOPMENT Stalls with free snacks and hot drinks at our office towers across multiple Mainland cities thanked delivery workforce, couriers and security Our senior management team rolled up their sleeves guards for their contributions to pack and distribute anti-epidemic pack to show appreciation for our staff’s dedication Fight against COVID-19 measures. The remaining RMB4 million was allocated to support various community initiatives, including Throughout the COVID-19 pandemic, the wellbeing of distributing protective anti-epidemic items, fresh food our employees, customers, and communities has been packs, basic necessities, and meal coupons to over our topmost priority. 14,000 beneficiaries in Hong Kong and mainland China We provide personal protective equipment, including throughout the year. surgical masks, face shields, and gloves to protect our We also set up stalls with free snacks and hot drinks at staff at work. Since February 2020, we adopted flexible Grand Gateway 66 in Shanghai, Olympia 66 in Dalian, yet productive work arrangements and a stringent and Palace 66 in Shenyang to thank the delivery reporting and self-quarantine protocol to reduce social workforce and couriers for their contributions and contact and potential for spreading the virus. our security guards for their dedication and We implemented extensive precautionary measures at professionalism during the pandemic. all our properties in Hong Kong and mainland China To mark the 60th anniversary of Hang Lung Group, to ensure the safety of our customers and tenants. around 1,000 of our Company’s volunteers from Hong Among others, we increased the frequency of Kong and nine cities in mainland China came together thorough sanitization and disinfection with new for our first-ever, large-scale community services event technologies at our malls, office towers, and common in September 2020. Together, we provided support for areas. We also stepped up the sanitization of 4,500 underprivileged people and enhanced their ventilation systems with fresh air intake to improve awareness of health and safety measures. indoor air quality and provide hand sanitizers and thermometers at our malls. Climate Resilience We further earmarked a donation of RMB10 million Carbon Emissions Reduction from the “Hang Lung Novel Coronavirus Relief Fund” in February 2020 to serve our communities during the To escalate our efforts to mitigate climate change, we pandemic. Leishenshan Hospital in Wuhan received set a 2030 portfolio-wide carbon reduction intensity RMB6 million to fund COVID-19 preparedness target for our scopes 1 and 2 emissions, a target Hang Lung Properties Limited 94 SUSTAINABLE DEVELOPMENT Commemorating Hang Lung Group’s 60th anniversary, our inaugural large-scale community services event supported 4,500 underprivileged people informed by the Science Based Targets initiative (SBTi) Resource Management methodology. In 2020, we completed the first Energy Conservation greenhouse gas (GHG) mitigation plan for all As part of our GHG mitigation plan, each property has properties in operation. Launching in 2021, the plan’s identified energy efficiency and conservation measures key focus is to enhance energy efficiency as more than under four major categories: 1) capital measures 90% of our scopes 1 and 2 emissions come from that retrofit or replace inefficient equipment; building energy consumption. We regularly monitor 2) improved building operating practices; 3) testing, our carbon emissions to ensure we remain on track to calibration, and optimization of building facilities; and achieve our carbon reduction target. We also migrated 4) behavioral change measures (e.g., turning off the our carbon emissions data to an online platform in lights). All planned measures will be implemented in 2020 to improve traceability and reliability. 2021. The process will be repeated annually. Adaptation to Physical Climate Risks Water Conservation Hang Lung recognizes the need to adapt our Many of our operating cities are affected by water properties to the physical risks arising from changes in stress. As a result, we have implemented a broad means and extremes of climate patterns. In late 2020, spectrum of measures to reduce water consumption at with the support of an external climate modeling our properties, from installing water-efficient fixtures to expert, we launched a physical climate risks analysis of raising awareness of water conservation among our all our properties for different climate scenarios. The employees, customers, and tenants. first iteration of our climate adaptation plan is due for completion by the end of 2021. The plan will identify Waste Management physical risks to our assets and operations, our existing control measures, residual risks, and recommended Waste management remains a key environmental adaptation measures. The climate adaptation plan will challenge in Hong Kong and mainland China. New be updated periodically as a core feature of our measures launched in 2020 are set to increase our climate risk management strategy. waste reduction efforts. 95 2020 Annual Report SUSTAINABLE DEVELOPMENT In Hong Kong, we partnered with Mastercard and Wellbeing KeyChain Pay to digitize and streamline the rental Employee Wellbeing process and cut down paper consumption for some of Talent Attraction and Retention our serviced apartments. We observed a significant increase in the sales of takeaway meals by food and Hang Lung provides competitive remuneration and beverage (F&B) tenants during the year due to the benefits packages, which are regularly benchmarked pandemic. To engage customers in waste reduction, against industry standards to ensure a fair and we encouraged patrons to bring reusable containers respectful workplace. We remain committed to to purchase takeaway food in exchange for ensuring the fair and equal treatment of all our shopping vouchers. employees and job candidates. Our Equal Employment Opportunities Policy prohibits any form Our properties in mainland China continued to of discrimination against employees