Hang Lung : Sustainability Report 2020

Hang Lung Group Limited

Stock Code : 00010

Overview	Climate	Resource	Wellbeing	Sustainable	Performance	Content
Resilience	Management	Transactions	index
HANG LUNG GROUP LIMITED

CONTENTS

1. About this Report
2. Message from our Chief Executive Officer
3. Sustainability At-a-Glance 2020

8 Journey towards Leadership

10 About Hang Lung Group

12 Sustainability Governance

21 Climate Resilience

1. Resource Management

1. Wellbeing
   46 Sustainable Transactions

1. Memberships and Charters
2. Performance Tables

64 Independent Assurance Opinion Statement

67 Independent Practitioner's Assurance Report for Green Bonds and Green Loans

70 Content Indices for Reporting Guidelines

Stock Code	00010
Registered office	28th Floor, Standard Chartered Bank Building, 4 Des Voeux Road Central, Hong Kong
Tel	[phone]
Email	[e-mail]
Web	www.hanglunggroup.com
Report	www.hanglung.com/group/sustainability
	© Hang Lung Group Limited 2021

If there is any discrepancy or inconsistency between the English and the Chinese versions, the English version shall prevail.

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Overview	Climate	Resource	Wellbeing	Sustainable	Performance	Content
Resilience	Management	Transactions	index
HANG LUNG GROUP LIMITED

Our Vision

We create compelling spaces

that enrich lives

Our Mission

We pursue sustainable growth by connecting

our customers and communities

Our Values

We live up to our brand motto of

We Do It Well by focusing on

Integrity

Sustainability

Excellence

Openness

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HANG LUNG GROUP LIMITED

About this Report

Ronnie C. Chan,

Chair

Overview

Climate

Resource

Wellbeing

Sustainable

Performance

Content

Resilience

Management

Transactions

index

This is the fourth sustainability report (the "Report") for Hang Lung Group Limited (Hang Lung Group, stock code: 00010) and its subsidiaries (collectively known as "Hang Lung" or "the Group"), including Hang Lung Properties Limited (Hang Lung Properties, stock code: 00101). Hang Lung Group produced and issued this Report to disclose information transparently the Group's material sustainability topics from January 1, 2020 to December 31, 2020, unless otherwise specified, so our stakeholders can fully understand our impacts. This Report follows our Sustainability Report 2019, which was published online in May 2020.

Scope of this report

This Report focuses primarily on the Group's management approach to the material sustainability issues of the Group. Economic and social key performance indicators (KPIs) reported across our material topics cover our entire operations. To ensure the disclosed data reflect

the normal operating conditions of the properties, the reported environmental KPIs excludes new properties that are operated by the Group for less than two years. The properties covered by the reported environmental KPIs include 24 properties in Hong Kong, as well as eight properties on the Mainland.

Reporting standards and assurance

This Report has been prepared in accordance with the Global Reporting Initiative (GRI) Standards: Core option (May 2020 version) with the content of this Report defined based on the principles of stakeholder inclusiveness, sustainability context, materiality, and completeness. The disclosures in this Report are in compliance with the "mandatory disclosure requirements" and "comply or explain" provisions of the latest Environmental, Social and Governance Reporting Guide contained in Appendix 27 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited published in 2019 (ESG Reporting Guide). The adoption of these reporting standard and guideline ensures that the content of this Report is accurate, balanced, clear, comparable, reliable and is disclosed in a timely manner. Information in this Report has been independently verified by the British Standards Institution with respect to the aforementioned standards. Please refer to the Independent Assurance Opinion Statement on pages 64 to 66.

New in this year, we have also made our best efforts to report against metrics required by Sustainability Accounting Standards Board (SASB) for the real estate sector to cater for the broader expectations of investors. Please refer to pages 78 to 79 for details.

Contact us

We welcome your feedback on our Report and sustainability performance. Please share your views with us at [e-mail].

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Overview	Climate	Resource	Wellbeing	Sustainable	Performance	Content
Resilience	Management	Transactions	index
HANG LUNG GROUP LIMITED

Message from our Chief Executive Officer

Weber Lo,

Chief Executive Officer

Our enhanced sustainability framework, which we announced in last year's Sustainability Report, has sharpened our focus and increased our ambition across four priorities: Climate Resilience, Resource Management, Wellbeing and Sustainable Transactions. We have been fully engaged since then, and we are pleased to provide an update on our progress.

In late 2020 the Group announced a set of sustainability goals and targets to be achieved by 2030. The goals and targets are elaborated inside this Report, so I will not list them here, but I would highlight what they mean to us: they reaffirm our commitment to creating sustainable value and reflect our ambition to become one of the most sustainable real estate companies in the world.

As a major first step towards achieving these goals and targets, our Sustainability Steering Committee endorsed 35 strategic Environmental, Social and Governance (ESG) KPIs for 2021. These KPIs empower us to drive change in areas as varied as greenhouse gas reduction, sustainable procurement for our operations and projects, and improving wellbeing for our employees, with departmental progress directly tied to their annual performance reviews. A summary of the major thematic areas covered by the KPIs is provided in this Report. A year from now, we will disclose our progress against these ESG KPIs, including both the challenges we faced and the results we achieved.

Following the 60th anniversary of Hang Lung Group in 2020, we articulated our vision, mission and values to position us for sustainable growth in the next 60 years. Our vision is to "create compelling spaces that enrich lives," by which we mean enrichment not only in the material sense, but also in the holistic sense of personal wellbeing. Our mission is to "pursue sustainable growth by connecting our customers and communities," indicating both the financial and ESG dimensions of sustainability. We recognize that these dimensions are inextricably linked and indispensable for our continued success, and so our commitment to sustainability animates our corporate purpose at every level. Our values of Integrity, Sustainability, Excellence and Openness provide a compass to guide employee decisions and actions.

Sustainability was also the centerpiece of our annual Hang Lung Management Conference in March 2021, which was attended virtually by 204 executives. The conference featured business leaders from Fifth Wall, Arup and Starbucks, who shared with us, respectively, insights into global decarbonization trends, practical steps towards decarbonization in real estate, and how a leading brand embeds sustainability throughout its operations while caring for its staff.

Lastly, we have managed the challenges of COVID-19by working as one team. We adopted multiple measures to provide support to our colleagues and safeguard against infection risks, including a dedicated pandemic response team, provision of protective equipment, counselling services, compensation adjustments, and redeployment of staff. Through our concerted efforts, we achieved zero infection for all personnel in our newly opened large-scale commercial development Heartland 66 in Wuhan, and we were one of the first companies that resumed operation in April 2020. Even so, we know the battle to overcome COVID-19 is far from over, and we hope the global community will become more resilient and sustainable on the other side of this devastating crisis.

Weber Lo

Chief Executive Officer

May 2021

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