Guangdong Land : Environmental, Social and Governance Report

2021

Environmental, Social and

Governance Report

Guangdong Land Holdings Limited Environmental, Social and Governance Report 2021

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Contents

2	1.	About this Report	20	8.	Caring for Employees
2		1.1	Scope of this Report	20		8.1	Diverse and Fair Employment Policy
2		1.2	Access to this Report	21		8.2	Occupational Health and Safety
2		1.3	Contact Us	24		8.3	Career Development and Training
3	2.	Chairman's Statement	27		8.4	Employee Communication and Care
4	3.	Board Statement	28	9.	Quality Management
5	4.	About Guangdong Land	28		9.1	Supply Chain Management
8	5.	Sustainable Development Management	29		9.2	Service Quality Management
8		5.1	Our Philosophy	29		9.3	Project Quality Management
8		5.2	Environmental, Social and Governance Organisational	30		9.4	Anti-corruption
			Structure and their Respective Responsibilities	31	10.	Caring for the Community
9	6.	Relationship with Stakeholders and Material Issues	31		10.1	Projects Supporting Community Development
9		6.1	Communication with Stakeholders	33		10.2	Community Health
10		6.2	Materiality Analysis on ESG Issues	33		10.3	Precise Poverty Alleviation
11	7.	Environmental Protection	34	11.	Appendix - Content Index of HKEx ESG Reporting Guide

1. 7.1 Climate Change
2. 7.2 Achieving Green Buildings

16	7.3 Contributing to the Construction of a Sponge City

1. 7.4 Green Office
2. 7.5 Environmental Data Performance

1. About this Report

Guangdong Land Holdings Limited (hereinafter referred to as "Guangdong Land", the "Company" or "we") and its subsidiaries (collectively referred to as the "Group") are pleased to publish our sixth Environmental, Social and Governance Report (the "Report").

This Report has been prepared in accordance with the Environmental, Social and Governance Reporting Guide (the "ESG Reporting Guide") as set out in Appendix 27 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited issued by The Stock Exchange of Hong Kong Limited (the "Stock Exchange") and the《廣東省房地產企業社會 責任指引》(Guangdong Province Real Estate Corporate Social Responsibility Guide*) published by 廣東省房地產行業協會 (Guangdong Real Estate Association*).

This Report follows the four principles of materiality, quantitative, balance and consistency as stipulated in the ESG Reporting Guide. In order to continuously improve the Company's performance in environmental, social and governance aspects, we continue to improve the reporting process and strengthen our information collection activities for reporting, including regularly providing training to employees responsible for data collection, and continuously communicating with our stakeholders.

• In this Report, the English name of the term or entity marked with an asterisk is a translation of its Chinese name, and is included herein for identification purposes only. In the event of any inconsistency, the Chinese name shall prevail.

Guangdong Land Holdings Limited Environmental, Social and Governance Report 2021

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1.1 Scope of this Report

This Report summarises the efforts and achievements made by the Group in environmental, social and corporate governance aspects during the period from 1 January 2021 to 31 December 2021, covering various aspects such as the Company's sustainable development management, relationship with various stakeholders and material issues, environmental protection, caring for employee, quality management, and caring for the community.

Unless otherwise stated, the scope of this Report includes all operating segments that have a significant impact on the Group. During the year, the Guangzhou Yungang City Project, the Jiangmen Ganhua Project and the Huizhou Dayawan Project have been added to the scope of this Report.

1.2 Access to this Report

This Report is available in both Chinese and English versions for readers' reference, and is uploaded to and published on the websites of the Stock Exchange and the Company in electronic format. Interested readers may download this Report from the website of Guangdong Land (http://

1. gdland.com.hk/en). For more information about the Company's corporate governance or other information of the Group, please refer to our announcements, annual reports and website.

1.3 Contact Us

If you have any questions or comments on this Report and its content, please contact us at:

Address	:	18th Floor, Guangdong Investment Tower,
		148 Connaught Road Central, Hong Kong
Telephone	:	(852) 2165 6262
Facsimile	:	(852) 2815 2020
Email	:	[e-mail]
Website	:	http://www.gdland.com.hk/en

2. Chairman's Statement

Under the guidance of the board of directors of the Company (the "Board"), the Group and all its employees have united as one to overcome various environmental and social challenges, actively promoted the sustainable development of business, and created returns for shareholders. The outbreak of Coronavirus Disease 2019 (the "Pandemic") has brought many uncertainties and pressure to the Group's property development, and we are deeply aware of the importance of enhancing the Group's resilience. Regardless of the Pandemic or the severe and ever-changing climate change, we need to continuously improve our business resilience to face the increasingly severe challenges and integrate the concept of sustainable development into every aspect of our business operations.

During the year, the Group has developed the Guangzhou Yungang City Project, the Jiangmen Ganhua Project and the Huizhou Dayawan Project, continuing to expand our business presence in the Guangdong-Hong Kong- Macao Greater Bay Area (the "Greater Bay Area"). We are committed to providing the public with high-quality community facilities and creating a green and livable city.

In line with the concept of "people-oriented and safe development", we attach great importance to production safety and pandemic prevention and control. The Group keeps abreast of the pandemic prevention and situation control, and closely monitors the pandemic risks, while adopting various measures, such as providing employees with weekly nucleic acid testing and conducting emergency drills, so as to create a safe, healthy and stable working environment. In addition, we implemented various safety management measures in accordance with the Group's Safety Management System and Work Guidelines, and regularly provided professional and diversified safety training for employees, achieving zero case of loss and fatality due to work-related injuries for three consecutive years. The contribution of our employees is critical to the success of our business. We strive to create a caring and rewarding working environment for our employees to ensure their growth in a diverse and fair environment. At the same time, we continue to provide career development and training opportunities for our employees to maintain their competitiveness and release their potential.

Guangdong Land Holdings Limited Environmental, Social and Governance Report 2021

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We are well aware of the importance of responding to climate change. To this end, the Group has accelerated the fulfilment of its environmental protection responsibilities. During the year, the Group has formulated environmental objectives and climate policies, established the direction of the Group's climate risk management, conducted climate risk assessment, and formulated mitigation and adaptation measures . We utilise the technology and our expertise to integrate green building elements into a majority of our projects and the construction plans for sponge cities. Hence strive to obtain green building certifications and enhance the climate resilience of our businesses, to fully promote the harmonious co-existence of nature and buildings. In addition to property management and development, the Group continues to promote green office and create a low-carbon corporate environment with employees. On the other hand, we extend the concept of sustainable development to the entire value chain. In the process of project development, the Group requires contractors to carry out green construction, and takes social and environmental factors into consideration during the bidding process when selecting suppliers or products.

As a socially responsible enterprise, the Group is committed to bringing positive impact to the community and promoting the common prosperity of the community. We actively organise various public welfare activities to help people in need in the community and undertake corporate responsibilities. Through close communication and collaboration with various stakeholders, we also fulfill our commitment to promote sustainable development of the community, and create a harmonious society with mutual benefits.

LAN Runing

Chairman

Hong Kong, 27 April 2022

3. Board Statement

The Group maintains a comprehensive sustainability governance structure to effectively manage the sustainable development of Guangdong Land's business . The Board has complete oversight of ESG issues and is responsible for monitoring the Group's ESG management approach and related strategies. During the annual Board meeting, material ESG issues, progress of related matters, key performance indicators (KPIs) and targets reported by the ESG Committee were reviewed. For details of the analysis of material issues and their results, please refer to Chapter 6 "Relationship with Stakeholders and Material Issues".

In facing climate change, the leaders around the world have increased awareness of the urgency of climate actions and have tightened the sustainability related regulatory requirements. In addition to the commitment of the People's Republic of China (the "PRC" or "Mainland China") to achieve carbon peaking by 2030 and carbon neutrality by 2060, the Stock Exchange also revised the disclosure requirements for environmental goals and climate change in the ESG Reporting Guide. In addition, the Group realised that climate change will bring risks to the operation of the real estate industry. In view of this, Guangdong Land invited a third party to conduct a climate change risk identification exercise during the year. Based on desktop research, we identified high-correlation climate risks, and then analysed the risk level with reference to the likelihood and severity of the risks through assessment tools. Physical risks that are highly relevant to the Group include typhoons, floods and extreme heat; and transformation risks include legal and regulatory risks and technical risks. Based on the results of the analysis, Guangdong Land has formulated a series of mitigation measures to reduce the risks to the business operations of Guangdong Land.

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In terms of target setting, all three qualitative targets are closely related to the real estate industry. The targets set cover areas including green building, environmental protection measures and community development, which are in line with the material issues of the year. In the future, Guangdong Land will actively study the feasibility of setting targets for other material issues in order to enhance the management, performance and disclosure of sustainable development.

The Board has authorised the ESG Committee to be responsible for ESG matters and has set up an ESG working group to carry out specific implementations. With the Board's guidance, the ESG Committee is responsible for determining the management objectives approaches and implementation pathways for ESG matters, and monitoring the implementation and effectiveness of the adopted policies and practices. The ESG Committee also reports to the Board on a regular basis while leading and supervising the ESG working group.