Investing in Sustainability

We recognise that prosperity encompasses more than just financial success; it also includes the welfare of our communities and the health of our planet. This perspective informs our investment strategy, as we adhere to a comprehensive set of ESG Due Diligence Guideline and ESG Investment Guidelines to ensure that our portfolio reflects our values and contributes to a more sustainable future. Additionally, prioritising sustainability enables us to develop a more resilient and long-lasting portfolio, which is likely to yield greater value over time and present lower risks compared to traditional investment approaches.

ESG Due Diligence Guideline

In the reporting year, the Group updated our guidelines to enhance the integration of Environmental, Social, and Governance (“ESG”) considerations into investment management activities, reinforcing CCG’s commitment to sustainable development and responsible investing. These guidelines now apply to conventional financial and startup funds, diversification investments, and the acquisition of existing building assets in Hong Kong, Mainland China, and overseas.

For real estate investment, key updates include a structured technical due diligence process which requires thorough screening and adherence to a Due Diligence Checklist. Acquisitions are limited to buildings that meet at least the second-highest rating in recognised green and wellness standards, while the carbon intensity of target assets will be assessed with reference to the CCG3050+ Carbon Reduction Roadmap or any subsequent updates.

Compliance records must be maintained, and justifications provided for any deviations from the guidelines, ensuring transparency and accountability in our sustainability initiatives and furthering CCG’s commitment to sustainability.

Case Study

Enhancing Our Global Portfolio through Sustainable Property Acquisitions

The acquisition of Kaleidoscope and One New Street Square, two key properties in London, UK, in FY2022/23 not only marks a strategic entry into the overseas real estate market but also underscores our firm commitment to fostering a sustainable built environment on a global scale.

Kaleidoscope and One New Street Square have both been awarded a WELL “Gold” certification, with Kaleidoscope receiving an “Excellent” rating under the Building Research Establishment Environmental Assessment Method (“BREEAM”), while One New Street Square has achieved an “Outstanding” BREEAM rating. Notably, One New Street Square received the “Best Fit Out of Workplace” award at the BCO National Awards in 2019, which underscores its exceptional design and ESG credentials. This building is also the largest in the world to achieve dual certification with both BREEAM Outstanding and WELL Gold certifications, showcasing our commitment to sustainability.

The sustainability features of these buildings include advanced water and energy management systems, as well as a robust digital infrastructure at Kaleidoscope. In contrast, One New Street Square has been designed with nature in mind, surrounded by plentiful trees and an extensive vertical garden. Moreover, it recently received the “Test of Time” award at the BCO National Awards in 2024, recognising its ability to meet the evolving needs of tenants while maintaining its original design intentions. Together, these properties provide a green and health-conscious environment, allowing occupants to fully engage with sustainable living.

By ensuring our acquisitions meet stringent ESG criteria and the ESG Due Diligence Guideline, we are not only enhancing the quality of our overall investment portfolio but also reinforcing our commitment to sustainable development.

Sustainable Investment Guideline

To implement a responsible investment strategy, we aim to maintain an average MSCI ESG Rating of BBB or above for our investment portfolio. During our analysis, we thoroughly assess the ESG ratings of companies, ensuring that ESG performance is considered alongside financial indicators. We also prioritise the acquisition of sustainable bonds whenever they are available from the same issuer. Furthermore, we meticulously review the ESG reports of asset management firms associated with our fund investments, as well as any relevant ESG credentials held by asset managers during the selection process. Our goal is to identify and support companies that demonstrate strong ESG practices.

To further our commitment to sustainable investment, we have chosen to exclude sectors that are incompatible with our values. These sectors include:

Operation of Casinos

Production of Lethal Weapon

Production of Tobacco

Production of Pornography

In accordance with the ESG Due Diligence Guideline and ESG Investment Guidelines, we strive to develop a sustainable portfolio that not only delivers positive financial returns but also makes a significant contribution to society and the environment.