Zhitong Finance App News. Recently, Jiulong Cang Group (00004) released the “2023 Sustainability Report”, which reaffirms the Group's policies and commitments and shares its sustainable development measures for the reporting year.

The Wharf Group was founded in 1886 and is a publicly listed company headquartered in Hong Kong. The Group has a wide range of businesses, including investment and development properties in Hong Kong, China and mainland China, and hotel services in Hong Kong, Mainland China and the Philippines; it also engages in logistics business through modern cargo terminals in Hong Kong. The Group's main customers are buyers of development properties, tenants of investment properties, shopping mall customers and residents, leisure and hotel guests, and corporate customers in the logistics business.

According to the ESG report, the board of directors of the Wharf Group reviews the Group's business strategy and oversees related performance, including Wharf's environmental, social and governance strategies and reports; regularly discusses and reviews the Group's environmental, social and governance risks and opportunities, performance and progress; and monitors the nature and extent of environmental, social and governance risks through authorization to the Audit Committee. At the same time, the Group values the opinions of its stakeholders and continues to respond to their concerns. The Group regularly communicates with stakeholders through various platforms and refers to their opinions in decision-making and strategic planning processes. In 2023, the group successfully communicated with 1,043 stakeholders, including employees, suppliers, tenants, investors and customers through online surveys, interviews, and focus group discussions.

As a real estate company that values social and environmental responsibility, the Wharf Group strives to do everything possible to improve the energy efficiency and cost efficiency of business operations. For example, incandescent lamps in the courtyard of Times Square in Chongqing have been replaced by LED lights, which save 43.33% of energy. In order to achieve decarbonization goals, the group expanded the use of renewable energy, and its modern container terminal completed the second phase of the installation of a solar power system in 2023, increasing the annual power generation from renewable energy to three times the original. Currently, modern container terminals produce a total of 431,000 kilowatt-hours of electricity per year and reduce carbon emissions by 168 tons. In 2023, the Group's total greenhouse gas emissions (scope 1, 2 and 3) were 249,607 tons of carbon dioxide equivalent, a decrease of 12% compared to 2022.

The group adheres to the best industry standards when it comes to designing and constructing green buildings. By the end of the reporting year, more than 55% of the Group's investment properties in mainland China had obtained green certification in terms of total floor area. Meanwhile, the environmental efforts of the hotel business have also been recognized by EarthCheck. A total of nine hotels have been certified by the Global Leading Environmental Certification and Benchmarking Program (“EarthCheck”) to recognize sustainable development efforts in the tourism industry.

In terms of sustainable social development, the Wharf Group strives to create a fair and inspiring workplace that ensures equal opportunities for employees regardless of gender, age, family background, race, religion, nationality, sexual orientation or disability. As of December 31, 2023, the Group had 5,571 employees, including 5,569 full time and 2 part-time workers. The ratio of male to female employees was 1. 3:1, the gender pay ratio was 1. 4:1, and the group's overall employee turnover rate was 18%.

The group's overall gender ratio remained within a good range during the reporting year, with women accounting for over 40%. To support new mothers who have just given birth and returned to work, the group provides nursing rooms equipped with refrigerated facilities to provide a private space for nursing employees.

The Wharf Group offers a variety of training programs to enhance employees' abilities and expertise in a rapidly changing business environment. The Group provides an orientation program for new employees to familiarize them with the Group's corporate structure, culture, mission and values. Additionally, the Group's business units conduct annual assessments to identify the knowledge, skills, and competencies required for current employees to plan training. To establish a culture of continuous learning within the Group, the Group actively encourages full-time employees to participate in professional qualifications, work-related training courses, seminars and conferences organized by third parties. In 2023, 95.5% of the group's employees received training. The total number of training hours was 159,597 hours, and the average number of training hours per person was 28.6 hours. Among them, the average number of training hours for male employees was 27.5 hours, and the average number of training hours for female employees was 30.1 hours.

In terms of supply chain management, the Wharf Group implements a strict supplier management system to evaluate and monitor the performance of suppliers in environmental protection, labor rights and health and safety. During the reporting period, the group carried out regular on-site inspections to obtain first-hand information from business partners. To prevent the negative effects of accidents, the Group has established standardized processes in the supply chain to detect environmental and social risks, including qualitative identification of risks, quantitative risk assessments, and implementation of risk control measures based on the operating practices of each business unit.

The Wharf Group prioritizes suppliers that meet the Group's environmental, social and governance requirements, and takes business ethics seriously. In 2023, the group examined and screened 97% of new suppliers for development properties in mainland China and investment properties in mainland China. In 2023, the group procured products and services from local suppliers, almost all of which were purchased locally.

In the future, the Wharf Group will continue to invest in high quality and sustainable development to maintain its leading position and respond to stakeholders' environmental and social concerns to ensure the future of the Group's business and make positive contributions to “creating tomorrow” for society.

(Link ESG researcher Deng Shixia)