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Hang Lung Announces 25 x 25 Sustainability Targets
A Clear Agenda Towards Sustainability Leadership
Following the announcement of our 2030 Sustainability Goals and Targets in December 2020, we have now taken another big step forward by establishing 25 targets to be achieved by the end of 2025 (“25 x 25 Sustainability Targets” or “25 x 25”). Our 2025 and 2030 targets together frame our ambition to become one of the most sustainable real estate companies in the world.

The 25 x 25 Sustainability Targets address the four priorities outlined in Hang Lung’s Sustainability Framework, namely Climate Resilience, Resource Management, Wellbeing and Sustainable Transactions. They define concrete and quantifiable measures Hang Lung will pursue to address significant sustainability challenges and provide our employees with a clear agenda over the next four years. Here are some highlights from this ambitious agenda:

  • Climate Resilience: Targets related to Scopes 1, 2 and 3 greenhouse gas (GHG) emissions, renewable energy, and climate adaptation
  • Resource Management: Targets related to recycling, water use, and landfill diversion
  • Wellbeing: Targets related to employee engagement, gender pay ratio, persons with disabilities, health and wellness, safety, and youth
  • Sustainable Transactions: Targets related to suppliers’ ESG performance, marketing events, leases, sustainable finance, and asset acquisitions

In support of our long-term sustainability ambition, annual strategic ESG KPIs across the Companies that tied to the performance reviews of departments and employees were introduced in 2021. Key achievements this year include: (1) Developed GHG emissions reduction scenarios for 2025 and 2030 and a GHG mitigation plan for 2022; (2) Conducted first employee engagement survey; (3) Secured 30% of debts and available facilities from sustainable finance; (4) Developed detailed methodology for tracking our sustainability spending; and (5) Identified 16 sustainability improvement ideas for adoption in new projects.

See below a full list of the 25 x 25 Sustainability Targets:
Priority 2030 Goal 2030 Target  25 x 25
Climate Resilience Reduce carbon footprint in line with climate science Nearly net zero carbon building N/A
Demonstrate best efforts to achieve a 70% reduction in scopes 1 and 2 greenhouse gas emissions intensity (per m2), compared to 2018 baseline
  1. 40% cumulative reduction in GHG intensity (kg CO2e/m2) relative to 2018
  2. 18% cumulative reduction in electricity intensity (kWh/m2) relative to 2018
  3. 25% of our mainland China portfolio electricity demand met by renewable energy
  4. Wherever feasible exceed local regulations for the provision of parking spaces installed with EV charging facilities across our portfolio
  1. Demonstrate best efforts to achieve at least 10% reduction in embodied carbon intensity (kg CO2e/m2) for new development project that begin in 2022 or later, compared to typical practice in an equivalent building
  2. 15% reduction in GHG intensity (kg CO2e/m2) from tenants’ electricity consumption for our properties in mainland China, relative to 2018
N/A Climate adaptation
  1. Complete technical analysis for climate adaptation measures for all properties
Resource Management Promote circular economy by reducing resource consumption and maximizing recycling
Incorporate circular building principles in new properties
  1. 60% of construction waste diverted from landfill for new projects starting in 2022 with maximized recycling
  2. Demonstrate best efforts to maximize the use of recycled, reused and bio-based materials on all new projects
Implement water management program in all properties
  1. 10% reduction in water intensity (m3/m2/year) relative to 2018
Divert 90% of operational waste from landfill
  1. 70% of operational waste diverted from landfill
Wellbeing Ensure employees, customers and communities enjoy an unrivalled environment that promotes their health and wellbeing
Assess wellbeing for all employees and key customers
  1. Achieve an employee engagement rating greater than or equal to the 75th percentile
  2. Maintain Female-to-Male pay ratio of 1:1
  3. Conduct an audit of all our properties and corporate practices on how to enhance wellbeing and opportunities for persons with disabilities
Meet or exceed wellbeing standards for new properties
  1. Obtain local or international health and wellness certification for all our existing Mainland properties
  2. Obtain WELL Gold certificate or equivalent for at least one new property in Hong Kong and mainland China
  3. Deliver priority ESG training targeted to all departments and seniority levels
  4. Maintain a Lost Time Injury Rate of 1.5 or below for employees
  5. Maintain zero work-related fatalities for employees and contractors
Work with youth on sustainability solutions in all cities where we have asset
  1. Work with youth on wellbeing community initiatives at all properties by 2025
Sustainable Transactions Collaborate with all suppliers and customers to advance our sustainability priorities
Implement supplier evaluation and ranking system
  1. Embrace technology to build a robust digital platform for assessing suppliers’ ESG performance
  2. 100% of marketing events evaluated for their sustainability impacts
Engage all tenants on emissions reduction, resource management, and wellbeing enhancement
  1. 100% of leases incorporate sustainability provisions
N/A Sustainable finance
  1. 50% of total debts and available facilities from sustainable finance
  N/A N/A
  1. 100% of potential asset acquisitions include ESG due diligence

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