Message from CEO

Dear Stakeholders,

With our dedication to creating better places for our community and future generations, we have embarked on a journey to create value by enriching the people and communities we serve. In the face of continued economic headwinds and unexpected challenges, we are strengthening our governance framework and business processes to enhance decision-making while improving operational efficiencies and reporting effectiveness. To integrate sustainability into our business operations and governance, we have strengthened our ESG governance system, which includes an ESG Steering Committee that operates under a formalised Terms of Reference outlining its roles and responsibilities. Our ongoing sustainability efforts have led us to reach new heights in our achievements. Announced in October 2024, we have achieved the highest possible 5-star rating in the Global Real Estate Sustainability Benchmark (“GRESB”) and have been recognised as a Global Sector Leader for 2024. This recognition represents a significant milestone for us, underscoring our substantial advancements in governance, risk management, stakeholder engagement, and the green performance of our properties and businesses.

Key Highlights of Our ESG Efforts

Throughout FY2023/24, we have continued to create long-term value anchored in our cornerstones of empowering people and protecting the planet.

The acquisition of D·PARK and the opening of Nina Park have synergised with our flagship properties to transform Tsuen Wan into a vibrant community space that welcomes individuals of all ages and backgrounds, creating an even more liveable community. To extend the reach of our community engagement activities, we have continued the “One Beat, One World: Connecting Through the Drum” series for a second year to infuse positive energy and promote social inclusion in the community. We have also launched our CCG Hearts loyalty programme, a platform that fosters mutual support and encourages volunteerism by promoting the belief of doing good is rewarding. To create an empowering workplace, we have launched our Employer Value Proposition to offer career and personal development opportunities, as well as to prioritise social progress, personal excellence, and support for our employees’ families and interests.

We recognise the importance of climate change and biodiversity to our operations and prospect. We have carried out climate-related financial assessments to obtain insights that will inform our strategies for climate mitigation and adaptation. Committed to being an Early Adopter of the Taskforce on Nature-related Financial Disclosures (“TNFD”), we have launched our inaugural TNFD study for better management of the nature-related risks and opportunities throughout our operations and value chain.

Our Decarbonisation Efforts Guided by CCG 3050+

In response to the risks and opportunities posed by climate change, we have continued our decarbonisation efforts guided by the Chinachem Group Carbon Reduction Roadmap – CCG 3050+, with the objective to reduce operational carbon intensity by 51.8% by 2030, compared to the base year of 2020. In 2023, we have reached a 25.2% carbon intensity reduction further down from 23.0% in 2022. We are currently in the process in setting our Science Based Targets initiative net-zero target aligned with the 1.5°C pathway.

One of our upcoming key initiatives to achieve our decarbonisation targets is enhancing the energy efficiency of our chiller plants. Building on the success of the first chiller plant unit upgrade under our zero-carbon chiller system replacement project at Nina Tower, we will proceed with the remaining plant units replacement and implement artificial intelligence for energy optimisation, anticipating to yield up to 45% energy savings. Furthermore, we are exploring opportunities in heating and cooling with high potential for further energy saving and asset condition improvement.

Our Journey to a Sustainable Future

To foster stakeholder trust and promote sustainable growth, we will persist in enhancing our governance and operational processes, particularly in risk management and regulatory compliance.

We recognise that sustainable financing is crucial to our broader efforts in supporting the transition to a low-carbon economy and fostering more livable cities. To secure funding for our sustainability efforts, we are establishing ourselves as the first real estate developer to align with both the Hong Kong Taxonomy for Sustainable Finance and the International Platform on Sustainable Finance (IPSF)’s Common Ground Taxonomy through our enhanced Sustainable Finance Framework. This comprehensive and robust framework will strengthen the governance of our financial decision-making processes, bringing us closer to our goal of creating long-term value for our stakeholders and the communities we serve.

Strategically building resilience in our property investment portfolio is essential for enhancing the quality and stability of our property. We will conduct asset condition surveys on our properties to identify repair and maintenance capital expenditure requirements, prioritise our asset enhancement and redevelopment plans and establish our disposal strategy, which will help us maintain a resilient portfolio including achieving energy savings and carbon intensity reduction.

With the dedication and diligence of our talented team, we take great pride in contributing to the sustainability journey. Together, we are making significant strides toward a more sustainable future. I would like to extend my appreciation to our stakeholders, including our colleagues, customers, tenants, partners, and communities, for their continued support and collaboration. With your continued commitment, I am confident that we can work hand in hand to achieve our shared goals of creating better places to live, work, and raise future generations in Hong Kong and beyond.