ANNUAL REPORT 2023

59

SUSTAINABILITY

REPORT

ABOUT THIS REPORT

BOARD STATEMENT

The Board of Directors ("Board") recognises and values the importance of the sustainable performance of Ying Li International Real Estate Limited ("Ying Li" or the "Company" and together with its subsidiaries, the "Group") and oversight of all environmental, social and governance ("ESG") matters, including without limitation to this Ying Li Sustainability Report 2023 ("SR" or the "Report"), various policies against ESG, stakeholder engagement and climate change. In order to ensure the material impacts of Ying Li are covered, the Board has the responsibility to regularly review, monitor and evaluate material ESG issues.

REPORTING SCOPE

Ying Li publishes sustainability reports on an annual basis and they are included in Ying Li's Annual Reports ("AR").

The Report summarizes Ying Li's sustainability performance from 1 January 2023 and 31 December 2023 (the "Reporting Period"). To ensure the completeness and comparability of the Report, it also includes events that occurred prior to the Reporting Period. The Report encompasses the operations and activities in Singapore headquarters and Chongqing offices, as well as investment properties and sales properties1 that are under the Group's direct operational control.

REPORTING STANDARDS AND PRINCIPLES

This Report has been prepared in accordance with the Global Reporting Initiative ("GRI") Standards, the Listing Manual of Singapore Exchange Securities Trading Limited ("SGX-ST") (Rules 711A, 711B and Practice Note 7.6 Sustainability Reporting Guide), and Rule 13.91 and Appendix 27 Environmental, Social and Governance Reporting Guide of the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited ("SEHK")2.

GRI is widely accepted as a global standard for sustainability reporting. During the preparation for this SR, we applied GRl's principles for defining report content and report quality by considering the Group's activities, impacts and substantive expectations and interests of its stakeholders.

The seven principles listed below have been observed in this Report:

Stakeholder

We consider the interests of a wide range of stakeholders, mainly shareholders, investors,

Inclusiveness

employees, customers, builders and suppliers, and regulatory authorities.

Materiality

We identify the environmental, social, and governance-related topics that are most material to us

and our stakeholders, through a materiality assessment and is reliably reflected in this SR.

Sustainability

Apart from material environmental, social, and governance-related factors, we also consider

Context

potential contribution to fight climate change.

Completeness

We incorporated material topics, topic boundaries, significant impacts and stakeholder feedbacks

into this SR while adhering to the six other reporting principles to enhance its completeness.

Quantitative

We commit to quantifying the data accurately with clarification as far as practicable.

Balance

We present the positive and negative aspects of our business in a transparent manner.

Consistency

We adhere to the same reporting approach as the previous year to ensure clarity and comparability

for our readers.

  • Including portions of Ying Li International Financial Centre (IFC)/Ying Li IMIX Park Jiefangbei (IMIX Park JFB), Ying Li International Plaza/Ying Li IMIX Park Daping (IMIX Park Daping), Ying Li International Hardware and Electrical Centre (IEC), San Ya Wan Phase 2 (Lion City Garden). For the avoidance of doubt, all ESG data related to the activities of tenants and sold properties' occupants are not included in the Report.
  • As Ying Li is a subsidiary company of China Everbright Limited (CEL, 0165.HK). this Report also follows SEHK's rules in providing supplementary ESG information to help fulfil CEL's ESG disclosure obligations.

60

YING LI INTERNATIONAL REAL ESTATE LIMITED

SUSTAINABILITY

REPORT

RESTATEMENT

The scope 3 greenhouse gas ("GHG") emissions for 2022 have been restated due to the updated calculation methodology in 2023. To ensure consistency and comparability, the calculation methodology of scope 3 GHG emissions for 2022 has been updated to align with the approach used in 2023. Meanwhile, the natural gas consumption in 2022 has also been restated to align with the reporting boundary. As a result, the total GHG emissions and intensity are lower than previously reported.

ACCESSIBILITY AND FEEDBACK

We warmly welcome your feedback on the Report and our sustainability-related approaches. Please share them with us through email to ir@yingligj.com.

Our AR and SR are accessible through our corporate website: https://www.yingligj.com/ar.

OUR APPROACH TO SUSTAINABILITY

SUSTAINABILITY GOVERNANCE STRUCTURE

An effective and robust corporate governance structure is crucial to our business success. It promotes and safeguards the interests of shareholders and attracts new stakeholders. Ying Li is committed to continuously strengthening and optimizing the sustainability framework of the Group, ensuring it maintains the Group's credibility and reputation.

Based on our Organisation Structure and Employee Responsibilities Policy (组织架构及岗位职责汇编), the Group has established the sustainability governance structure with the Board being the core of leadership, which is supported by the Management Decision Committee (管理决策委员会) and the ESG Working Group to promote Ying Li's sustainability initiatives and commitments from a top-down approach. As the highest governance body of the Group, the Board is responsible for leading and supervising the Group's sustainability strategies to ensure they act in the best interests of the Company and its stakeholders, as well as reviewing and monitoring corporate policies and strategies. In facilitating an effective sustainable management and governance, relevant sustainability-related criteria and key performance indicators have been included in the performance appraisal of the Senior Management and Executives, which is directly relating to the remuneration assessment.

BOARD OF DIRECTORS

Overseeing

Reporting

MANAGEMENT DECISION

COMMITTEE

Supervising

Reporting

ESG WORKING GROUP

Monitoring

Reporting

FUNCTIONAL

DEPARTMENTS

  • Formulate and develop the Group's ESG strategies and policies
  • Oversee the materiality assessment process and approve the result
  • Oversee and approve the Sustainability Report
  • Incorporate ESG factors in the decision-making process
  • Review the sustainability initiatives and identify the areas for improvement
  • Report to the Board on significant sustainable issues and decisions when necessary
  • Corporate Social Responsibility ("CSR") Coordinator is responsible for organizing the CSR efforts across departments and subsidiaries
  • Monitor the implementation of various sustainable development measures
  • Responsible for the preparation of the Sustainability Report
  • Execute and implement the sustainability initiatives set by the Group
  • Report material ESG issues identified during daily operations
  • Cooperate in promoting the Group's ESG commitment to stakeholders

ANNUAL REPORT 2023

61

SUSTAINABILITY

REPORT

STAKEHOLDER ENGAGEMENT

Ying Li truly understands that feedback from stakeholders is valuable to our business development as well as sustainability performance. Therefore, we have set up various engagement channels to allow regular communication with stakeholders to have a better understanding of their expectations regarding the impacts on the economy, environment and society, as well as to evaluate the efficacy of our sustainability priorities and measures.

The table below shows how our approach and rationale is set out against different stakeholders and the feedbacks we have received from them.

STAKEHOLDERS

HOW WE LISTEN

WHY WE DO IT

WHAT YOU'VE TOLD US

Builders and suppliers

•

Daily project meetings

•

Ensure construction/

• Ability to meet the Group's

•

Periodic evaluations on

maintenance/ renovation

quality standards

supplier performance

projects are completed on

• Ability to meet the Group's

time, with quality, and at a

delivery timelines

reasonable cost

Customers

•

Road shows

•

Safeguard investment

•

Optimising customer service

•

Feedbacks

•

value of customers

• Increase in investment value

•

Company website

Ensure customer

•

of properties

•

satisfaction is upheld

Emergency preparedness

Ensure service standards

Employees

•

Internal updates and

•

communication

Events and functions

• Improve employee

•

Health and safety

capabilities through internal

•

Career progression

and external trainings

•

Benefits and rewards

• Improve employee well-

• External and internal courses

being through managing

their health and safety

Regulatory authorities

•

Regular updates and

(Governments,

•

communication

SGX, MOM, IRAS)

Reports and compliance

•

Periodical meetings with

government bodies

• Adhere to environmental

• Compliance with relevant

regulations for building

laws and regulations

construction

  • Good relationship between continuous sponsors and the Group
  • Dialogue with SGX
  • Active participation in SGX events to increase visibility and transparency

Shareholders and

•

SGX announcements

• Committed to delivering

•

Long-term profitability

investors

•

Shareholder meetings

economic value to

•

Sustainability matters

•

Annual reports

our capital providers

•

Group performance against

•

Company's website

through a strong financial

targets

•

Regular updates and

performance and our

• Compliance with all relevant

communication

diverse methods of

requirements

engagement

62

YING LI INTERNATIONAL REAL ESTATE LIMITED

SUSTAINABILITY

REPORT

MATERIALITY ASSESSMENT

The Group acknowledges and values stakeholders' concerns and expectations over the Group's ESG issues. In the Reporting Period, the Group engaged a professional independent third-party consultant to perform a comprehensive materiality assessment, aiming to prioritize and identify key material issues of the Group. The materiality assessment is overseen by the Group to serve as a solid foundation for the development of the Report. We are committed to aligning our responses and disclosures with the critical concerns raised by our stakeholders. Additionally, the assessment serves as an invaluable reference point for the Group to review and formulate a robust sustainability strategy that meets and exceeds stakeholders' expectations.

The aspect boundaries "within" the organisation refer to business units and varying levels of seniority of Ying Li and its subsidiaries, whereas the aspect boundaries "outside" the organisation include builders and suppliers, customers, regulatory authorities, industry associations, Non-governmental Organisations ("NGOs"), shareholders and investors.

The procedure taken to perform the materiality assessment is outlined below:

IDENTIFYRATE

PRIORITISE VALIDATE

Identifying material ESG Issues

Rating the significance

Prioritizing material issues

Validating the result

In line with the GRI Standards, the international trends and information from peer benchmarking, we identified a total of 21 ESG issues from different aspects related to the Group's operations and

relevant information was collected for the assessment of importance.

The actual and potential impacts from the identified ESG issues are determined

through an online

questionnaire, covering internal and external stakeholders to gather their insights into the significance of ESG issues and their associated impacts. The feedback collected is used to perform an assessment to prioritize material ESG issues.

By considering the specific interests and priorities of each stakeholder, an assessment is performed to determinetheimportanceof ESG issues based on two key dimensions: "importance to stakeholders" and "relevance to the Group". A materiality matrix is developed to provide a comprehensive overview of the prioritization of material issues.

The result of the materiality

assessment is then reviewed and approved by the Board, which serve as a crucial reference for the disclosures in the Report and long-term sustainability strategy development.

In the Reporting Period, the Group has identified 21 material issues related to our business operations and developed the materiality matrix.

ANNUAL REPORT 2023

63

SUSTAINABILITY

REPORT

2023 YING LI ESG FACTORS MATERIALITY MATRIX

LOW

MEDIUM

HIGH

Importance to Stakeholders

7

20

21

9

1

17

15

13

4

11

5

3

18

10

6

8

14,16

2

12

19

Relevance to Ying Li

Environmental

Corporate Governance

Employee

Sustainable Supply Chain

Operational

MATERIALITY

NO.

ESG FACTORS

TOPICS

High

9

Compliance Employment *

Employee

20

Business Ethics and Anti-Corruption *

Corporate Governance

21

Corporate Governance and Risk Management *

Corporate Governance

3

Energy-saving Design

Environmental

5

Energy Efficiency

Environmental

6

Water Conservation

Environmental

7

Waste Management *

Environmental

8

Employee Remuneration and Benefits *

Employee

Medium

10

Occupational Safety and Health *

Employee

11

Skills Competency and Employee Training

Employee

13

Responsible Supply Chain

Sustainable Supply Chain

14

Managing Building Contractors

Sustainable Supply Chain

15

Green Leasing *

Operational

16

Product and Service Quality *

Operational

17

Marketing and Promotion *

Operational

18

Customer Privacy Protection *

Operational

1

Climate-related Risk and Opportunities *

Environmental

Low

2

Green Construction

Environmental

4

Managing Our Carbon Footprint

Environmental

12

Employee Diversity and Inclusion

Employee

19

Community Engagement and Social Welfare *

Operational

  • Newly added material issues in 2023

64

YING LI INTERNATIONAL REAL ESTATE LIMITED

SUSTAINABILITY

REPORT

SUSTAINABILITY STRATEGY

Sustainability has been the core of Ying Li's business and will continue to be integrated into the Group's decision making. Our sustainability strategy aims to manage our business in an ethically, socially and environmentally responsible manner, while creating shared value for our stakeholders. By prioritizing ESG matters, the Group seeks to mitigate risks, seize opportunities, and promote long-term value creation.

We have committed to the following focused areas to fulfil our sustainability vison and improve our sustainable performance for the future.

GREEN

OPERATIONAL

ENVIRONMENTAL

EMPLOYEE

DEVELOPMENT

SAFETY

SUSTAINABILITY

MOTIVATION

We strive to promote low- carbon and green business operation, focusing on

energy transformation and the implementation of energy-efficient designs to reduce our carbon footprint.

We place strong emphasize on the health and safety of our employees and contractors, implementing stringent safety measures and protocols, ensuring regular monitoring and compliance to minimize the risk of work-related injuries.

We ensure that our business operations and development have minimal adverse impact on the environment. We prioritize sustainability by adopting measures related to energy use, water use, waste management, and climate change.

We value the well-being, growth, and development of our employees. We are committed to creating a safe, inclusive, and harmonious

workplace environment. Furthermore, we emphasize talent cultivation and development to provide opportunities for skill enhancement.

The sustainability strategy is underpinned by our comprehensive internal policies on the following:

  • Safety Management Policy (安全技术管理政策), which covers aspects on safety culture, safety training and development, rewards and penalties, safety inspections, incidence reporting, and emergency response procedures in the event of safety incidents.
  • Subcontractor Management Policy (分包单位管理政策), which covers aspects on subcontractor listing, subcontractor jobs and responsibilities, quality of goods and services delivered, and subcontractor evaluations.
  • Human Resources Management Policy (人事管理政策), which covers aspects on Staff Handbook, department- specific performance evaluations, rewards and penalties.

ANNUAL REPORT 2023

65

SUSTAINABILITY

REPORT

SUSTAINABILITY TARGETS

We have set up sustainability goals for Ying Li below, according to the identified ESG factors with "High" or "Medium" materiality. Relevant ESG performance data are available in Appendix A: Sustainability Scorecard.

MATERIAL FACTORS

SHORT-TERM TARGET

LONG-TERM TARGET

VALUE CREATED

Energy-saving Design

To introduce energy-

To prioritise energy-

• Maximised energy-saving

saving intelligent

saving designs in our

starting from the design stage

transformation project.

projects.

by seeking Leadership in Energy

and Environment Design ("LEED")

certification for our portfolio as far

as practicable.

Energy Efficiency

To introduce energy-

To adopt energy-saving

• Installed intelligent energy-saving

saving intelligent

installations and enforce

control system to reduce energy

transformation project.

energy-saving policies

consumption.

within the offices,

malls and development

projects.

Water Conservation

To reduce the water

To adopt water saving

• Installed water efficient fittings and

consumption within

installations and enforce

water meters and raised awareness

office areas and

water saving policies

among stakeholders to conserve

managed properties.

within the offices,

water.

malls and development

projects.

Waste Management To reduce waste generation and improve waste diversion.

  • Adhere to the local regulations on waste segregation, collection, and disposal.
  • Promote reduce, reuse and recycle in offices and managed properties.

Compliance

To avoid violations of employment-related laws and

• No confirmed case of non-

Employment

regulations.

compliance in relation to labour

standards in the Reporting Period.

Employee

To ensure 100%

To improve employee

• Established robust mechanisms to

Remuneration and

employees have

retention rate and

review employee benefits.

Benefits

conducted performance

conduct performance

• 100% of employees were subjected

review.

appraisals annually.

to performance appraisal in the

Reporting Period.

66

YING LI INTERNATIONAL REAL ESTATE LIMITED

SUSTAINABILITY

REPORT

MATERIAL FACTORS

SHORT-TERM TARGET LONG-TERM TARGET

VALUE CREATED

Occupational Safety To avoid work-related employee injuries and

• Established a comprehensive

and Health

fatalities.

safety production mechanism to

ensure the highest safety standard

is applied.

• Zero work-related employee

injuries and fatalities in the

Reporting Period.

Skills Competency and To ensure all employees

Employee Training received training courses in raising their skills competency.

To provide a wide range

• Procedures in place for setting

of training types to

up internal trainings, subsidies

enhance employee

available for external trainings.

competency.

Green Leasing

To promote

To establish formal

• Raise awareness of tenants by

sustainability practices

tenant engagement to

promoting sustainability and the

in tenants

collaboratively enhance

Group's environmental initiatives.

ESG performance.

Product and Service

To ensure zero violations of construction-related

Quality

laws and regulations.

  • Employed project management system from pre-construction to post-construction to ensure the construction is high-standard.
  • Zero violations of construction- related laws and regulations in the
    Reporting Period.

Marketing and

To ensure zero violations of marketing laws and

Promotion

regulations.

  • Established the Compendium of Asset Sales Management Systems
    (资产销售管理制度汇编) for responsible marketing.
  • Zero violations of marketing laws and regulations in the Reporting
    Period.

Customer Privacy

To maintain zero information security incidents.

Protection

  • Implemented stringent guidelines to standardize the management of confidentiality for the Group's materials and information.
  • Zero information security incidents in the Reporting Period.

Responsible Supply

To promote and monitor

To prioritise

• Established strict guidelines as part

Chain

sustainable practices of

environmentally and

of our supplier management to

suppliers.

socially responsible

ensure the quality of their products

suppliers.

and services.

ANNUAL REPORT 2023

67

SUSTAINABILITY

REPORT

MATERIAL FACTORS

SHORT-TERM TARGET

LONG-TERM TARGET

VALUE CREATED

Managing Building

To ensure

To ensure

• Established strict guidelines as part

Contractors

subcontractors strictly

environmentally and

of our subcontractor management

follow the Construction

socially responsible

to ensure the quality of their

Management Policy

actions are taken by

products and services.

and related laws and

building contractors.

regulations.

Business Ethics and

To maintain zero corruption cases and no violations

• Implemented clear guidelines for a

Anti-Corruption

of business compliance.

robust internal control system and

for the employees to understand

the importance of business

integrity.

Corporate Governance

To ensure strong adherence to corporate

• Set up and regularly review the

and Risk Management

governance and risk management practices.

"three lines of defense" mechanism

for risk management.

68

YING LI INTERNATIONAL REAL ESTATE LIMITED

SUSTAINABILITY

REPORT

ALIGNMENT WITH SUSTAINABLE DEVELOPMENT GOALS

Ying Li is committed to supporting Sustainable Development Goals ("SDGs") initiated by the United Nations. We strive to create value in four areas, including our environment, people, community and supply chain, aligning our contributions to SDGs in demonstrating our efforts towards creating a more sustainable future.

CORRSPONDING SDGS

OUR ESG CONTRIBUTIONS

• Promote green and low-carbon transformation

that strive to enhance energy efficiency

• Implement high energy-efficient designs into

our building design plans in contributing to more

Our Environment

sustainable buildings

• Raise the environmental awareness among our

employees and tenants

Our People

Our Community

  • Behave ethically and endeavour to improve the quality of life of the employees, their families as well as the society
  • Respect human rights and provide a fair, healthy and safe working environment
  • Encourage employees to participate in volunteer services to create a positive impact to our society
  • Facilitate rural revitalization such as industry support, investment attraction, talent training, and consumer assistance to promote the economic growth and living standards in rural areas

• Promote sustainable practices to our suppliers and contractors to facilitate their participation in creating a sustainable city

• Ensure our suppliers and contractors are strictly

Our Supply Chainabide by regulations including labour rights, environmental protection and business ethics

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

Ying Li International Real Estate Ltd. published this content on 15 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 April 2024 16:03:07 UTC.