Poly Property

Sustainable Development Blueprint

The Group drives the deep integration of sustainable development issues with corporate strategy and operations. In 2024, we formulated and released a sustainable development strategy comprising five strategic directions: Lean Governance, Brighter Future, Green Homeland, People-oriented Philosophy, and Shared Success. Additionally, we align our sustainable development strategy with the United Nations Sustainable Development Goals (UN SDGs), aiming to create sustainable long-term value for customers, employees, communities, and the Earth. The key ESG issues we focus on and related commitments are illustrated as follows:

ESG Governance Structure

To ensure the effective implementation of our ESG strategy and the achievement of sustainable development goals, the Group has established a top-down ESG governance structure with clear lines of authority and responsibility to implement the work of ESG management.

Board of Directors

Review and approve the overall ESG strategies, goals and policies of the Company
Review and approve the Company's ESG reports
Be ultimately responsible for the overall ESG governance of the Company
Supervise the management and review the Company's ESG performance
Monitor major ESG risks of the Company, review ESG-related risk management and internal control systems

ESG Committee of the Board of Directors

Develop and monitor the overall ESG strategies, goals and policies of the Company
Advance the top-down culture building and incorporate ESG factors into the business decision-making process
Identify and assess major ESG risks related to the Company's business
Review the progress and results of ESG work and monitor the Company's ESG performance to meet the expectations and requirements of investors and regulators
Review the Company's ESG report and recommend approval by the Board of Directors
Report ESG work to the Board of Directors on an annual basis

ESG Leading Group

Propose the Company's ESG strategies and objectives and submit them for review and approval by the ESG Committee and the Board of Directors
Study, discuss and make decisions on specific ESG issues
Develop the annual ESG plan, action plan and specific objectives, review and determine the annual ESG budget
Review the ESG mechanism and scope of authority every year
Organize and lead the preparation of ESG reports
Report work and give advice to the ESG Committee of the Board of Directors every year
Monitor and promptly inform the ESG Committee of ESG-related material risk events of the Company

ESG Executing Group

Pay attention to ESG issues with strong relevance, implement ESG-related policies and work, and conduct cross-departmental cooperation in dealing with specific issues
Report the ESG progress every year, including KPIs
Participate in the preparation of ESG reports
Integrate ESG with functional business, and continuously improve work methods
Report ESG-related risk events to the ESG Leading Group in a timely manner and share major positive ESG cases or material risk events of the year across the Group
Pay attention to the ESG development trends of industry-related functions and actively put forward ESG improvement suggestions to the ESG Leading Group

Dual-carbon Goals

We will strive to reduce the scope 1 and 2 carbon emission intensity by more than 20% by 2030 (compared to the 2023 baseline) and strive to achieve carbon neutrality by 2060.
We promise, 100% of newly acquired projects are designed in accordance with the basic requirements of green buildings in China.

Sustainability Linked Loan

We successfully signed the first sustainability linked loan of HKD 3.9 billion with 9 major international and local banks. The Company has selected three ESG KPIs, namely greenhouse gas (GHG) emission intensity, water resource utilization intensity, and ESG training duration., and set corresponding goals to reduce costs through incentive methods, aiming to supervise and improve the Company's performance in sustainability.

Business Ethics

Poly Property continuously optimize the business ethics and anti-corruption management structure, and establish a dedicated Discipline Inspection Office to oversee and enforce the Company's business ethics standards. Regular training is provided to employees to ensure that the latest laws, regulations, and internal policies are effectively publicized and implemented, while advancing the system in which the officials don't dare to, are unable to and have no desire to commit corruption. During the reporting period, the Group did not have any litigation or cases involving corruption.

2024

Poly Property organized specialized business ethics and anticorruption

Training Sessions

10

times

Benefiting

3,447

trainees

Total Duration

8,179

hours

Of which, we provided specialized business ethics and anticorruption

Training for Directors

3

times

Benefiting

12

trainees

Total Duration

43

hours

Whistle-blowing System

We have established a sound whistle-blowing mechanism to encourage our employees, suppliers and partners to report in real names or anonymously by paying a visit, calls or emails. We rigorously receive and handle every complaint, to safeguard the Company's culture of integrity.

Receiving Complaints

For complaint letters and submitted written materials: open and register each item and process promptly to prevent loss of items

For complaints in person: communicate individually and recording in details; for complaints by calls: answer attentively and record honestly

For complaints made by SMS, WeChat or emails: prepare written materials with source and date clearly indicated

Categorizing and Processing

For complaints that fall within the scope of the Audit and Risk Management Center of Poly Property, fill out the Poly Property Letter and Visit Complaint Accepting Form

For complaints that fall within the scope of the Audit and Risk Management Center of a subsidiary, a letter will be issued to the relevant subsidiary for processing

Complaint Handling

The investigation is monitored by the Review Committee comprising four independent non-executive directors of Poly Property and is handled by the Review and Risk Management Centre under its authorization. The Review and Risk Management Centre may engage internal or external legal, accounting, human resources or other advisers and has access to all accounts of the Group, and must be supported by all directors, officers, employees and agents in the course of the investigation

Complaint Handling Process

To protect the privacy and security of whistleblowers, investigators involved in cases are required to sign a Confidentiality Undertaking in the investigation and handling process, to prevent the disclosure of the reporting content and personal information of the whistleblower, so as to ensure that any employees do not suffer improper harm due to non-compliance of expressing concerns or reporting, or due to any illegal actions. The Company will punish any individual or group that retaliates against the whistleblower as the case may be, and provide corresponding protective measures for employees.

Whistleblowing Policy

SUSTAINABLE DEVELOPMENT

Lean Governance

ESG Governance Structure

Risk Management

Sustainable Development Blueprint

ESG Governance Structure

BoardofDirectors

ESGCommittee of the Board of Directors

ESGLeadingGroup

ESGExecutingGroup

Dual-carbon Goals

Sustainability Linked Loan

Business Ethics

2024

10

3,447

8,179

3

12

43

Whistle-blowing System

Receiving Complaints

Categorizing and Processing

Complaint Handling

Board
of
Directors

ESG
Committee of the Board of Directors

ESG
Leading
Group

ESG
Executing
Group