Link ESG researchers learned that recently, Xianneng Group (01730) released the “Sustainability Report 2023" to summarize the Group's achievements, challenges and strategic vision in the field of sustainable development as of September 30, 2023.

Xianneng Group is a real estate management service group with a long history. Its history dates back to 1991. It is widely praised for its ability to create value through its expertise in space optimization. Furthermore, the group provides a range of services in facility management and renewable energy, which complement its core space optimization business.

The ESG report shows that Xianneng Group has established a sustainable organizational structure, and the board of directors oversees the group's ESG matters. In addition to the comprehensive ESG framework, the group has also set up special committees to monitor and manage key elements while maintaining the balance between internal and external sustainable development goals. The group ensures transparent and structured disclosure of information to stakeholders by categorizing major issues under three main axes.

In terms of environmental protection, Xianneng Group's top priority is to comprehensively assess direct range 1 emissions from mobile combustion in the facility management business and indirect range 2 emissions associated with property electricity consumption in space optimization business. In fiscal year 2023, the Group's overall carbon emissions were 1,965 tons of carbon dioxide equivalent, reflecting the carbon emission intensity of 0.046 tons of carbon dioxide equivalent per square meter of total operating area. Compared with 2,165 tons of carbon dioxide equivalent and 0.049 tons of carbon dioxide eq/m2 in FY2022, the overall carbon emissions and carbon emission intensity were reduced by 9% and 7%, respectively.

At the social level, Xianneng Group emphasizes the importance of having a diverse workforce to promote innovation and creativity, which are important elements of business. During the reporting period, the Group recruited a total of 213 new employees. Notably, 46% of these new employees were women. By the end of fiscal year 2023, the total number of employees in the group had surged to 412, a significant increase compared with 356 at the end of fiscal year 2022. Of these, 40% of employees were women, and 58% of senior management positions were held by women.

Xianneng Group places great importance on investing in employee learning and development, encouraging employees to participate in relevant courses, and sponsoring courses organized by non-Group organizations. In 2023, the group invested approximately SGD 79,000 in external training programs for employees. Compared with 5,692 hours in FY2022, the training time increased significantly, totaling 7,406 hours. Each employee received an average of 18.0 hours of training, covering various topics such as finance, environmental management, health and safety. This is an increase compared to the 15.9 hours of training time per employee in 2022, and is also much higher than the Group's goal of at least 15 hours of training per employee.

In terms of supply chain management, Xianneng Group requires suppliers to declare their commitment to comply with social requirements, including important considerations such as fair employment practices, prevention of discrimination, prohibition of child labor, elimination of forced labor, etc., to ensure that the Group's supply chain partners are consistent with their values and promote everyone's commitment to ethical and responsible business practices.

Looking forward to the future, Xianneng Group will unswervingly commit to cooperating with suppliers to further strengthen a socially responsible supply chain. To effectively monitor and evaluate the Group's progress in this key area, Xianneng Group plans to implement relevant indicators to track and measure the Group's performance.