We aim to promote sustainability practices in all types of business transactions at all stages of our value chain: the materials we procure, the contractors we engage, our sources and uses of capital, and forms of collaboration with our tenants and customers through partnerships and contractual obligation. We will make our own efforts as well as work through relevant information platforms, associations and like-minded organizations to advance this agenda.
2030 Goal
Collaborate with all suppliers and customers to advance our sustainability priorities.
2030 Targets
- Implement supplier evaluation and ranking system
- Engage all tenants on emissions reduction, resource management, and wellbeing enhancement
25 x 25 Sustainability Targets
- Embrace technology to build a robust digital platform for assessing suppliers’ ESG performance
- 100% of marketing events evaluated for their sustainability impacts
- 100% of leases incorporate sustainability provisions
- 50% of total debts and available facilities from sustainable finance
- 100% of potential asset acquisitions include ESG due diligence
Sustainable Supply Chain Management
We have adopted multiple approaches to embed sustainability into our supply chain, including:
- Our Sustainable Procurement Policy for Goods and Services is in place to encourage our employees, suppliers and contractors to source environmentally responsible materials, adopt simple packaging and recycle waste;
- Our suppliers and contractors are required to abide by our Code of Conduct for Suppliers and Contractors, which stipulates our sustainability principles and minimum requirements;
- We appoint designated safety consultants as independent parties to monitor the safety performance of our contractors at key projects in mainland China;
In 2024 we identified 34 significant suppliers from operations and construction, including 33 Tier 1 suppliers and one non-Tier 1 supplier. The Tier 1 significant suppliers represented more than one-third of our total Tier 1 spending in 2024. More than 80% of these 34 significant suppliers completed an ESG assessment with supporting evidence (such as policies and certifications). In addition, two suppliers – one from operations and one from construction – underwent on-site audits conducted by an independent third party in line with Sedex Members Ethical Trade Audit (SMETA) guidelines. Each audit resulted in a report and a corrective action plan to ensure continual improvement.
Responsible Artificial Intelligence Program
Hang Lung recognizes the potential of artificial intelligence (AI) to enhance operational efficiency, customer experience and innovation, while also acknowledging risks relating to data privacy, cybersecurity, accuracy, fairness and ethical use. We adopt a governance-first approach to the responsible use of AI across the Group. Our AI management system has been independently assessed through both Generative Artificial Intelligence Registration and Foundation Model Filing approval by the Cyberspace Administration of China (CAC) in 2025 & 2026 respectively.
Governance and control: In September 2025, Hang Lung established an Artificial Intelligence Governance Committee (AIGC) as the Group’s decision-making and leadership body for generative AI. Supported by a cross-functional execution team, the AIGC oversees the Group’s AI governance framework and reviews its implementation at least every six months. AI tools proposed for business use are reviewed before implementation. The Group maintains a list of permitted AI tools, while tools that have not completed the required review may only be used for permitted personal purposes, such as self-learning and development, and are prohibited for business purposes. Use of AI with confidential company information or personal data without prior approval is strictly prohibited.
Responsible use and transparency: Employees remain accountable for their use of AI and are required to verify the accuracy and appropriateness of AI-generated outputs before using them in business communications or decisions. AI outputs must not be relied upon without appropriate human oversight. AI-generated content must be identified as “AI-generated content”. Applicable AI reviews also consider fairness, non-discrimination, transparency, data protection and user rights.
Monitoring and user protection: Relevant AI systems are monitored for security, use and output quality. Measures include detecting abnormal or harmful outputs, periodically reviewing incorrect output rates, conducting security inspections, and tracking corrective actions. For public-facing AI services, users may submit feedback, complaints or appeals through the designated channel: AI_feedback@hanglung.com.
Environmental considerations: We are developing an approach to integrating sustainability considerations into the procurement and management of AI-related suppliers. Where feasible, we will consider the energy, water, and carbon efficiency of relevant data center services in technical evaluations, as well as engage suppliers to understand their plans to improve resource efficiency and reduce emissions.
Employee capability building and applications: Hang Lung provides training and engagement activities to promote informed, secure and responsible AI use. These activities include the Group’s first AI Open Day, held in July 2025, capability-building workshops organized by the AI Taskforce, and the cross-departmental AI Elite Group, which explores use cases and supports responsible adoption. Approved applications include several AI chatbots supporting operations and customer or tenant experience.
Sustainable Finance
We launched Hang Lung Group Sustainable Finance Framework the ("SFF") in January 2023, which superseded Hang Lung Properties’ 2019 Green Finance Framework. The SFF is applied across the Group, covers a wide range of financing instruments, and the scope of eligible investments includes environmental and social projects. It demonstrates how the Group intends to enter Sustainable Financing Transactions to fund projects that will deliver environmental and/or social benefits to support the business strategy and vision.
A Second-Party Opinion was obtained for the Framework from Sustainalytics, an independent environmental, social and governance research, ratings and analysis firm.
Environmental, Health and Safety Management
We have been developing our ISO 14001 Environmental Management System (EMS), which addresses environmental impacts, ensures compliance, and promotes sustainability. In 2026, we achieved ISO 14001 certification for our property management services (PMS) in Hong Kong and Chinese Mainland portfolio, covering our PMS head office, 12 properties in Hong Kong and 10 properties in Chinese Mainland. The certified gross floor area (GFA) now represents approximately 81% of our managed portfolio. Our occupational health and safety management system for Hong Kong properties is ISO 45001 certified since 2023. We have also obtained WELL Health-Safety Ratings for our core Hong Kong properties and all shopping malls and office towers in Mainland since January 2025.
Tenant Partnerships
Building on our pioneering sustainability partnership with LVMH Group, in December 2023 we launched a voluntary partnerships program for all our tenants on sustainability. The Changemakers Program offers a variety of sustainability actions to tenants of all sizes in sectors such as office, retail, food and beverage (F&B), and hospitality to reduce carbon emissions, minimize waste, advance circularity, and enhance community wellbeing. Participants can choose to participate at either the “Foundational” or “Advanced” level. The Program brings value to participants by offering capacity-building resources, energy performance benchmarking, technical services and support, volunteering opportunities, and recognition for their ESG efforts.
Landlord-tenant collaboration is also key for climate decarbonization. Tenants are one of our key stakeholders to engage along our value chain, not only for scope 3 emissions reduction but also for boosting revenue. We anticipate an opportunity to strengthen the relationship with our office tenants in ESG collaboration and decarbonization. Tenant engagement on ESG also presents an opportunity for increased revenue despite challenging and competitive market conditions.
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