2017 Vanke Corporate Social Responsibility Report Vanke Corporate Social Responsibility Report 2017 is printed on the paper from the forest with FSC certification. We suggest you share the report with others after reading its so as to promote resource recycling. All rights reserved. Any unauthorized copying, 2017 www.fsc.org collection or adaptation of the report will be held accountable. Vanke Corporate Social Responsibility Report 1 2017 Vanke Corporate Social Responsibility Report About this Report Contents Introduction The 2017 Corporate Social Responsibility Report of China Vanke Co., Ltd. is the 11th CSR report issued by the 01 Message 02 About Vanke 09 Topic Vanke Group since 2007. It provides a detailed disclosure of Vanke's practice and performance in areas such as operation, environment and society in 2017 based on the principles of objectivity, normativity, transparence and 02 Our Performance in 2017 09 Topic I：A good life visionary comprehensiveness. 03 Company Overview 11 Topic II：A force for the real economy Period 04 Corporate Governance 12 Topic III：An innovative explorer From January 1 to December 31, 2017. To make the report more comparable, some parts of it may trace back to 06 Responsibility Management 13 Topic IV：A harmonious ecosystem builder previous years. Release cycle This is an annual report. The last report was released in July 2017. 15 45 65 Report scope The report covers China Vanke Co., Ltd., operating subsidiaries of Vanke in the People's Republic of China and Vanke's OPERATIONAL ENVIRONMENTAL SOCIAL businesses in the US, the UK, Singapore, Malaysia and Hong Kong. PRACTICES PRACTICES PRACTICES Preparation basis The Ten Principles of the UN Global Compact "Triple Excellence" Housing Cultural Heritage The ISO26000: Guide to Social Responsibility (2010) issued by the International Standardization Organization 17 Residences 47 Industrialization 67 Protection The Sustainability Report Guidelines (G4) issued by the Global Reporting Initiative Green 29 Long-term Rental 51 69 Charity The national standard CSR Report Guidelines (GB/T36001-2015) Apartments Building The Chinese CSR Report Guidelines issued by the Chinese Academy of Social Science (CASS-CSR3.0) Green Technology Vanke Business 55 93 Health Campaign Guide to Standard Operation of Listed Companies on the Shenzhen Stock Exchange 33 Innovation Green Environmental, Social and Governance Reporting Guide issued by the Hong Kong Stock Exchange Logistics Care for Employees 36 59 Operation 99 Corporate Social Responsibility Guidelines of Real Estate Enterprises of Guangdong Province issued by the Warehousing Green Supply Win-win Guangdong Real Estate Association Corporate Offices 37 61 Chain 107 Cooperation Data sources and reliability guarantee Vanke Resort Garbage 38 62 Sorting Sources of data used in the report include data made public by governmental bodies, relevant Vanke internal statistical reports, third party surveys, administrative documents and reports and third party comments and interviews. Vanke Green Vegetation 41 Senior Care 63 guarantees that the report is free of any false information, misrepresentation or major omissions to be best of its Research knowledge . 43 Vanke Education 63 Green Public Welfare Notes 64 Green Office Management 1）To facilitate presentation and reading, in this report "China Vanke Co., Ltd." is also expressed as "Vanke Group" 110 Vanke Environmental "Vanke" "The Group" "The Company" or "We". Data Summary in 2017 2）The financial data in this report is all based on the accounting standards of the People's Republic of China. 111 ESG Index Access to report 113 Feedback You may download the Chinese and English editions of this report from Vanke's website at www.vanke.com or website of the Hong Kong Stock Exchange at www.hkex.com.hk. For the WeChat version, please follow the WeChat public account of Vanke Weekly. For any questions or suggestions concerning the report, please send an email to csr@vanke. com, or call us at (86)(0755) 2560 6666. 2 About this Report Contents 3 2017 Vanke Corporate Social Responsibility Report Message About Vanke Building a Great Business in a Great Era The year of 2017 has just come to an end, and it was an to going green and environmental protection, advancing extraordinary year. The 19th National Congress of the the green industrialization strategy and providing new Our Performance in 2017 Communist Party of China (the "CPC") was held, during solutions. which our leaders presented a magnificent vision of building a modern and strong socialist country. They In terms of development direction, Vanke will continue to made the major political judgments that the Chinese focus on three areas. First of all, housing occupation instead Fortune socialist society is entering a new era, and the principal of vicious speculation, and equal emphasis on rent and Sales Amount Sales Area 500 Ranking contradiction of the Chinese society has become the purchase. Real estate must be developed for the purpose contradiction between people's increasing need for a of occupation. Our job is to implement our strategies as required by the state, find countermeasures and lead the good life and imbalanced and inadequate development. 2 th Additionally, they mapped out programs for building industry. In 2008, Vanke started to explore the house leasing RMB 529.88 billion 35,952,000 m 307 a moderately well-off society in a comprehensive way, business through Wanhuilou in Guangzhou; in 2014, Vanke targeting poverty alleviation, building a Beautiful China unfolded its pioneering plan of scaled development of and industrial development. rental housing; since 2017, we have attempted to transform certain old buildings in urban villages into long-term rental 45.3% 30.0% 49 The 19th National Congress of the CPC announced the apartments to provide a higher quality living environment advent of the new era. What are the key points of this era? for young people working in the cities. All these projects As an enterprise, we believe the new era is characterized represent our responsibilities in the new era. by three features: firstly, a change from economic development-centered to people-centered; secondly, The second area involves the good life and upgraded a change from high-speed growth to high quality consumption. We aspire to build an eco-platform to serve Operating Taxes Paid Contract Residential development; and lastly, a change from a material life to a customers as well as urban and rural areas to provide Revenue Daily on Average Project good life. superior products and services for healthy and happy lives, and grow into a constructive force for promotion of urban th As shown in the 4 Ten-year Development Plan in 2014, and rural development, social harmony and progress and a RMB 242.897billion RMB 155 million 1,833 Communities Vanke has already extended its role from a supplier of Triple better life for all. In the future, we will continue to develop Excellence Residences to an urban builder and life service property services, long-term rental apartments, commerce, provider. In the new era, we will upgrade our positioning to logistics, education, senior care and ski resort programs, and 1.01% 29.8% —— an “urban and rural construction and life service provider” continue to fight for the people's dream of a good life , which which covers four roles: a “good life” visionary, a force for is the main goal of every Vanke employee. the real economy, an innovative explorer and a harmonious ecosystem builder. The third area includes Beautiful China, going green and environmental protection. As pointed out in the 19th National Firstly, as a “good life” visionary, we will take advantage of Congress of the CPC, beautiful scenery is like a gold mine; Customer our professionalism to create a stage and provide value for Ratio of Residential Green Floor Area promoting conservation culture is the millennium plan for Industrialization to Satisfaction the good life of the people. sustainable development of the Chinese nation. We must Total Construction treat the environment as something as important as life itself, Commencement Secondly, Vanke is a force for the real economy and Fortune pioneer green development patterns and lifestyles and build 500 company. As the entire Chinese society works hard to % Points m2 promote the development of the real economy, Vanke aspires a Beautiful China. As can be seen from Vanke's corporate 84 87 43,724,000 to provide new impetus to help China's real economy take social responsibility records, Vanke incorporated the goal of off in each city where it leaves its mark and support China's “building an excellent green business” into its corporate Points efforts in developing the real economy. vision as early as 2008. For the past decade, we have focused 0.6% 1 54.3% on our leadership in green development of the industry. Our Thirdly, Vanke is determined to be an innovative explorer. residential industrialization, green building and community Relying on imitation is no path to success; Chinese garbage classification programs have become industry companies cannot just follow Western management benchmarks and continuously contributed to the Beautiful theories. In terms of enterprise management mechanisms, China drive. In the advent of the new era, we have advanced Vanke has the responsibility to be a pioneer in innovative our green strategy and taken advantage of years of industry Number of Number of Total External Donation exploration. This can be seen in its business partnership experience to participate in the Xiongan New Area, Beautiful Qualified Suppliers Employees Amount mechanism, which is now in full swing. Centered on the core Countryside and Targeted Poverty Alleviation programs. philosophy of Consensus, Co-creation, Joint Responsibility and Sharing, the business partnership mechanism In the new era, we will continue to build a good business, do 1,250 Suppliers 77,708 RMB 103.5 million is consistent with the goal of developing the social the right things and take the right path.