SUSTAINABILITY AND CSR REPORT 2016

ENVIRONMENTALLY AND SOCIALLY FOCUSED

Henderson Land's holistic approach to sustainability is achieved through innovation, investment, collaboration and engagement.

CONTENTS

ABOUT THIS REPORT

02

06

MESSAGE FROM MANAGEMENT

08

ABOUT OUR GROUP

14

CORPORATE GOVERNANCE

OUR ENVIRONMENT

16

OUR PEOPLE

28

OUR VALUE CHAIN AND CUSTOMERS

32

38

OUR COMMUNITY

56

KEY FACTS AND STATISTICS

66 GRI AND HKEX ESG CONTENT INDEX

Henderson Land Development Company Limited 72-76/F, Two International Finance Centre,

8 Finance Street, Central, Hong Kong

ABOUT THIS REPORT Scope of Report

Henderson Land Development Company Limited ("Henderson Land" or "the Group") is pleased to present our third standalone annual Sustainability and CSR Report ("the Report").

Alongside the 2016 Annual Report highlighting our financial performance, the Report provides an overview of our sustainability initiatives and investments. Addressing stakeholders' interests in our environmental, social and economic impacts, the Report also presents our historic performance and future targets.

Henderson Land's sustainability activities were first documented in the Group's 2006 Annual Report. Since then, the Group has remained resolute in communicating our approach to sustainability with transparency and integrity. We also recognise how invaluable the Report is as an internal benchmark for measuring our continuous progress.

The Report provides an overview of the Group's policy and performance during the calendar year ended 31 December 2016. It lays out the sustainability

performance of Henderson Land's head office in Hong Kong and wholly-owned property management subsidiaries G o o d w i l l M a n a g e m e n t L i m i t e d ("Goodwill"), Well Born Real Estate Management Limited ("Well Born") and Hang Yick Properties Management Limited ("Hang Yick"), and our wholly- owned construction subsidiary E Man Construction Company Limited ("E Man").

The Report covers the Group's Hong Kong operations which comprise a substantial proportion of our business, and our property management and construction subsidiaries which also have considerable impact on our environmental and social performance. The scope of the Report does not encompass companies in which Henderson Land does not have a controlling interest.

How We Report

In accordance with the Global Reporting Initiative's G4 Sustainability Reporting Guidelines ("the G4 Guidelines") and the Construction and Real Estate Sector Supplement, the Report adopts the "Core" framework of the G4 Guidelines. This is also supplemented by references

to the Environmental, Social and Governance Reporting Guide ("the ESG Reporting Guide") set out in Appendix 27 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited ("HKEX"). The Report preparation involved an independently managed stakeholder engagement and materiality assessment exercise.

An electronic version of the Report is accessible via our website http://www.hld.com/en/csr/sustainability.shtml. Please feel free to contact us at corpcomm@hld.com, regarding any enquiries and opinions about the Group's sustainability issues.

Stakeholder Engagement

The Report has been r ealised through engagements with our valued stakeholder groups. Feedback and input from our shareholders, customers, employees, suppliers and the community are collected through regular communication channels, which have provided effective platforms for Henderson Land to identify solutions, gaps and opportunities for improvement.

2 Henderson Land Development Company Limited

Sustainability and CSR Report 2016

Regular Communication Channels

The following infographic provides an overview of our stakeholder groups and engagement channels:

Henderson Land's Stakeholder Groups

Industry Associations and Professional Bodies

Local Communities and Non-governmental Organisations ("NGOs")

Shareholders and Investors

Engagement Channels

Media

Customers and Tenants

Suppliers and Contractors

Employees Business Partners

Government and Regulators

Material Aspects and Boundary Setting

The G4 Guidelines articulate a range of Material Aspects for the reporting organisation to disclose its impacts on the environment, society and economy. The Material Aspects pertinent to the

organisation are dependent on the nature of its operations and stakeholders' interests. The Group sought the professional advice of an independent sustainability consultant to conduct the materiality assessment through desk- based research, media scans, peer benchmarking, stakeholder consultations and internal discussions.

In 2016, we conducted an anonymous online employee survey, encouraging staff to provide candid comments and feedback on the Group's CSR performance, which also served as an important internal employee engagement channel within the Group.

Henderson Land Development Company Limited 3

Sustainability and CSR Report 2016

Henderson Land Development Company Ltd. published this content on 25 April 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 25 April 2017 00:51:01 UTC.

Original documenthttp://www.hld.com/Dynamic/en/pdf/investor/circulars/2017/20170425/EW_00012csr-170425.pdf

Public permalinkhttp://www.publicnow.com/view/5D497833180132D5EC14DBB6712E216AFA477286