DEDICATION TO SUSTAINABILITY YANLORD LAND GROUP LIMITED Sustainability Report 2023
Contents 2 Introduction 3 About Yanlord 4 About this Report 5 2023 Sustainability Highlights 6 Awards 7 Approach to Sustainability 8 Board Statement 9 Sustainability Governance 10 Stakeholder Engagement 14 Materiality Assessment 15 Sustainable Development Goals 16 Upholding Good Governance 18 Anti-Corruption and Business Ethics 20 Compliance with Laws and Regulations 21 Caring for Our Customers 22 Quality of Products and Services 44 Customer Privacy 46 Empowering Our People 47 Employment 52 Learning and Development 57 Occupational Health and Safety 64 Preserving Our Planet 65 Climate Change 71 Green Buildings 85 Creating Shared Value for Our Society 86 Economic Performance 87 Sustainable Supplier Chain 88 Local Community and Social Investment 95 GRI Content Index
INTRODUCTION Contents Introduction Approach to Sustainability Upholding Good Governance Caring for Our Customers Empowering Our People Preserving Our Planet Creating Shared Value for Our Society GRI Content Index 2 Yanlord Land Group Limited Sustainability Report 2023
About Yanlord Yanlord Land Group Limited (“Company” and together with its subsidiaries, “Yanlord” or “Group or “we” or “our” or “us”) is a real estate developer focusing on developing high-end fully-fitted residential, commercial and integrated property projects in strategically selected key and high-growth cities in the People’s Republic of China (“PRC”) and Singapore. The Company has been listed on the Mainboard of the Singapore Exchange since June 2006. Building on its established track record for developing high-end residential property developments in prime locations within affluent cities of the PRC, the “Yanlord” name has been developed into a premium brand synonymous with quality within the property development industry of the PRC. Currently, Yanlord has an established presence in over 20 key high-growth cities within the six major economic regions of the PRC. In Singapore, developments of Leedon Green and Dairy Farm Residences have been completed, with another residential project, Hillock Green, currently under development. Yanlord has been developing high-quality commercial and integrated properties for long-term investment purpose, such as shopping malls, offices, serviced apartments and hotels. Currently, Yanlord holds a portfolio of core completed investment and hotel properties across multiple cities in the PRC. In Singapore, the Group holds a high-quality investment property portfolio and hotels. These projects are generating a growing rental income and for long-term investment for the Group. For more details on our portfolio, please refer to Yanlord’s Annual Report for the financial year ended December 31, 2023 (“FY 2023”) (“Annual Report 2023”). RMB43.395 billion in revenue RMB3.053 billion of profit before income tax RMB32.352 billion of property contracted pre-sales of the Group together with its joint ventures and associates for a total gross floor area (“GFA”) of 1.237 million square metres (“sqm”) RMB154.734 billion in total assets as at December 31, 2023 RMB3.776 billion of corporate income tax KEY ECONOMIC HIGHLIGHTS FOR FY 2023 Our Core Value CORPORATE PHILOSOPHY Developing land with devotion, building quality accommodation with passion 善待土地 用心造好房 MISSION STATEMENT Managing with benevolence and integrity, achieving perpetuity through perseverance 仁信治业 持之以恒 Contents Introduction Approach to Sustainability Upholding Good Governance Caring for Our Customers Empowering Our People Preserving Our Planet Creating Shared Value for Our Society GRI Content Index 3 Yanlord Land Group Limited Sustainability Report 2023
About this Report Yanlord remains committed on its journey towards sustainability. In light of challenging economic and market environments, the Group remains steadfast in its commitment to sustainable business practices, supporting various stakeholders, including employees, customers and local communities, and upholding sound corporate governance standards to maximise shareholder value. In 2023, Yanlord continues to enhance quality of its sustainability disclosures, and key updates set out in the Sustainability Report of Yanlord for FY 2023 (“Sustainability Report 2023”) encapsulate: • Reviewed and updated the list of material issues and enhanced the disclosure based on stakeholders’ feedback through interviews; and • Improved disclosures with reference to the Global Reporting Initiative (“GRI”) 2021 standards. Yanlord has conducted an internal review over selected sustainability aspects. Yanlord has not commissioned an external independent assurance for FY 2023, but will consider doing so in future as our sustainability reporting practices mature and taking into account the proposal of the Sustainability Reporting Advisory Committee. REPORTING SCOPE AND PERIOD Unless otherwise stated, the reporting scope for FY 2023 covers: PRC • Yanlord’s main business segments i. Property Development1 ii. Managed Properties2 iii. Hotels & Serviced Apartments Singapore • United Engineers Limited i. Property-related Business ii. Non-property-related Business • Yanlord Corporate Office Hong Kong Special Administrative Region (“Hong Kong SAR”) • Yanlord Corporate Office REPORTING STANDARDS The Sustainability Report 2023 is prepared with reference to the GRI Standards 2021 and the sustainability reporting requirements set out in the Listing Manual of Singapore Exchange Securities Trading Limited (“Listing Manual”). In addition, the GRI G4 Construction and Real Estate (“CRE”) Sector Disclosures and Task Force on Climate-Related Financial Disclosures (“TCFD”) recommendations have also been included in the Sustainability Report 2023. The GRI Standards 2021 was chosen for its international recognition as a reporting framework. It encompasses a wide array of disclosures that are both suitable and relevant for Yanlord to effectively communicate its sustainability initiatives and approach to addressing social and environmental impacts on the local community to its stakeholders. The Sustainability Report 2023 should be read together with the Annual Report 2023 for a comprehensive view of our businesses and performance. FEEDBACK We welcome any feedback, comments or suggestions relating to the Sustainability Report 2023 or on our sustainability approach and practices. Please direct your queries to: Director of Administrative Department Mr. Wang Pu Yanlord Land Group Limited 8F No.30, Lane 1399 Dingxiang Road Pudong Shanghai, PRC 200135 Tel : 86-21-50585333 Fax : 86-21-50585332 Email : pu.wang@yanlord.com Website : www.yanlordland.com 1 Property Development refers to ongoing property development projects. 2 Managed Properties refers to operational investment properties (including owned and managed hospitality properties). In addition, Yanlord’s corporate offices throughout the PRC are included. Contents Introduction Approach to Sustainability Upholding Good Governance Caring for Our Customers Empowering Our People Preserving Our Planet Creating Shared Value for Our Society GRI Content Index 4 Yanlord Land Group Limited Sustainability Report 2023
2023 Sustainability Highlights ECONOMIC ENVIRONMENT SOCIAL GOVERNANCE Revenue of the Group RMB43.395 billion in FY 2023 2023 TOP 50 of China Real Estate Developers 2023 TOP 10 of China Foreign Real Estate Developers MSCI-ESG Rating upgraded to A Cangjie Commercial Plaza in Suzhou was awarded 2023 RIBA China Landmark 100 – Urban Complex 2023 GBE HOPSCA Awards, Best Commercial Complex - Platinum Award Shanghai Yanlord Property Management was awarded Five-star Enterprise for Shanghai’s Comprehensive Property Service Capability Majority Independence of Board of Directors composed of 9 directors, of whom 5 are independent non-executive directors and 4 are executive directors Zero corruption and unethical business conduct incidents in all business operations Zero breaches of Yanlord’s Code of Business Conduct incidents 100% anti-corruption training coverage of property business in the PRC 100% coverage of new projects on Sunshine Procurement Platform anti-bribery and anti-corruption policy included as part of supplier contract Singapore Corporate Sustainability Award in the Big Cap category received in 2023 100% Property Under Development across the PRC and/or Singapore met Green Building design requirements In the PRC and Singapore The Oasis Mansion in Shanghai was awarded Shanghai Ultra-Low Energy Consumption Building Evaluation and Certification Riverside City in Jinan attained Gold Certification of Healthy Building Design Central Lake in Wuxi attained Green Building Two-Star Pre-certification Yanlord Central Lake (Phase 3) office portion in Taicang and Hangzhou Bay Commercial Land Parcels – Commercial Complex in Hangzhou attained LEED BD+C Gold Level Pre-certifications 30% female executive management and supervisors, an increase of 2% Zero occupational diseases and work-related fatalities Zero non-compliance concerning health and safety impacts of products and services incidents Continuous employee engagement through annual townhall and employee appreciation events 37 average training hours per employee 88% customer satisfaction scored from annual customer satisfaction survey for customers in the PRC Contents Introduction Approach to Sustainability Upholding Good Governance Caring for Our Customers Empowering Our People Preserving Our Planet Creating Shared Value for Our Society GRI Content Index 5 Yanlord Land Group Limited Sustainability Report 2023
Yanlord Land Pte. Ltd. • 2023 TOP 50 of China Real Estate Developers • 2023 TOP 10 of China Foreign Real Estate Developers Shanghai Yanlord Property Management Co., Ltd. • 2023 Five-star Enterprise for Shanghai’s Comprehensive Property Service Capability Nanjing Yanlord Property Management Co., Ltd. • 2022 Top 20 of Jiangsu Property Service Comprehensive Capability Oasis New Island Gardens, Nanjing • Jiangsu Provincial Demonstration Property Management Project The Park Mansion, Nanjing • Jiangsu Provincial Demonstration Property Management Project Yanlord Landmark, Chengdu • Collective with Outstanding Contributions to the Work of Responding to Extreme Disaster Weather to Maintain the Supply of Electricity by Chengdu Municipal Committee and Municipal Government Tianjin Jinnan Land, Tianjin • National Demonstration Age-Friendly Community in 2023 by National Health Commission of the PRC Yanlord The Great Bay (Phase 1), Zhuhai • Guangdong Province Construction Engineering Quality Structure Award (Year 2023) Yanlord North Shore Gardens, Zhuhai • Guangdong Province Construction Engineering Quality Award (Year 2023) Yanlord PRELAND, Suzhou • Second Prize of "Trustworthy Construction Quality Team Building" in 2023 • Third Prize of the 4th BIM Competition of Engineering and Construction Industry Four Seasons Heming Gardens, Suzhou • 2023 China Civil Engineering Zhan Tianyou Award for Outstanding Residential Community Gold Award Tang Song, Wuxi • Jiangsu Province Building Construction Standardisation Star Site Yanlord Central Lake, Taicang • Jiangsu Province Building Construction Standardisation Star Site Orchard Summer Palace, Shenyang • Liaoning Province Construction Engineering Quality Structure Award Grand ParcVue Hotel Residence, Chengdu • Best Service Award 2023 – Trip.com Group • ENCHANTE Hotel Awards 2023: Best Serviced Apartment ParcVue Hotel Residence, Nanjing • Best Design Hotel in Nanjing 2023 – Trip.com Group Yanlord Viale Hotel, Tianjin • Excellent Internet Practice Hotel 2023 – Trip.com Group • Second Place to New Media Hotel List 2023 – China International Travel Service Limited Awards InterContinental Hotel, Zhuhai • The 15th Voyage Hotel & Resort Awards 2023: Annual Best MICE Hotel • ‘Travel+Leisure’ China Travel Awards 2023: China’s Top 100 Hotels Crowne Plaza Sanya Haitang Bay Resort, Sanya • 2023 Best Family Hotel in Sanya Tourism Hotel Industry – Sanya Tourism and Hotel Industry Association • 2023 Best Guest Experience Hotel in Sanya Tourism Hotel Industry – Sanya Tourism and Hotel Industry Association • The Most Popular Wedding Hotel for Couples – Sanya Wedding Tourism Association • 2023 IHG Golden Dragon Award – IHG • Best Strategic Partner of the Year Award – CDF • Best Strategic Partner Award – CDF Singapore Corporate Sustainability Award Contents Introduction Approach to Sustainability Upholding Good Governance Caring for Our Customers Empowering Our People Preserving Our Planet Creating Shared Value for Our Society GRI Content Index 6 Yanlord Land Group Limited Sustainability Report 2023
APPROACH TO SUSTAINABILITY Contents Introduction Approach to Sustainability Upholding Good Governance Caring for Our Customers Empowering Our People Preserving Our Planet Creating Shared Value for Our Society GRI Content Index 7 Yanlord Land Group Limited Sustainability Report 2023
Board Statement The Board of Directors of the Company (“Board”) is pleased to present Yanlord’s seventh Sustainability Report. Yanlord focuses on the quality of products and services to meet the ever-changing and evolving needs of its customers, thereby distinguishing ourselves from other market players. We believe setting strategic objectives that take sustainability into account is critical to business success. As such, we are committed to integrating sustainability within our long-term strategies, including the incorporation of sustainability initiatives and goals throughout our business where possible. The sustainability governance structure at Yanlord begins with the Board overseeing key business affairs and strategic directions for the Group, with an appropriate focus on sustainability. The Board is supported by the Risk Management and Sustainability Committee (“RMSC”) which oversees the appropriateness of the monitoring and the management of Environmental, Social and Governance (“ESG”) topics which are material and relevant to our business as well as the Company’s approach towards sustainability reporting. Based on the materiality reassessment carried out in FY 2023, the number of material topics expands to 12, with a new focus on sustainable supply chain. Results of the materiality reassessment were presented to the RMSC and the Board for review and thereafter, it was determined that the 12 material ESG topics are pertinent to the business of the Group for FY 2023. Over the preceding year, the lingering economic repercussions of the post-COVID-19 epidemic have persisted, compounded by fluctuations in interest rates and geopolitical turmoil, presenting formidable challenges. Within the PRC, our primary operational domain, the real estate sector remained entrenched in a phase of adjustment, characterised by a proliferation of regulatory measures across various provinces and municipalities. Yanlord diligently adhered to these regulatory mandates, steadfast in our commitment to delivering high-quality residential developments and exemplary customer service, surpassing industry benchmarks for customer satisfaction. In addition, the relentless onslaught of extreme weather induced by climate change persisted, subjecting some of our properties to the ravages of typhoons and torrential rainfall. Gratefully, our robust emergency management framework enables us to address these challenges promptly and effectively, ensuring the safety and well-being of our residents and tenants. In the Sustainability Report 2023, Yanlord has strengthened its ESG disclosure, augmenting it with comprehensive elaboration and achievements on supply chain sustainable management practices, and enhanced the disclosure of our sustainability performance in accordance with the GRI Standards 2021, in alignment with our commitment to address stakeholders’ concerns regarding our sustainability endeavour. In our journey towards sustainability, we have achieved some milestones and have been recognised externally. In FY 2023, we were awarded the Singapore Corporate Sustainability Award in the Big Cap category, while our MSCI-ESG rating was upgraded to A. However, we acknowledge that substantial work lies ahead. Moving forward, we will steadfastly uphold our dedication to advancing the objectives of sustainable development, undertaking proactive initiatives and collaborating with stakeholders to foster a better and more sustainable future. Contents Introduction Approach to Sustainability Upholding Good Governance Caring for Our Customers Empowering Our People Preserving Our Planet Creating Shared Value for Our Society GRI Content Index 8
Sustainability Governance The four-tier sustainability governance structure begins at the top with the Board, which is ultimately responsible for the Company’s sustainability reporting. The Board maintains oversight on the business affairs and strategic directions of the Group as well as determining the material ESG topics pertinent to the Group’s business on an annual basis. The Board is supported by the RMSC which ensures there is an appropriate focus on sustainability by management. RMSC oversees the ESG Management Committee which comprises members of senior management personnel who formulate and supervise the policies and initiatives relating to Yanlord’s material ESG topics. Through the support of the ESG Task Force, the specific sustainability practices are shared across the respective departments and communicated to stakeholders. All Board members had completed their training on sustainability matters as prescribed by the Singapore Exchange pursuant to Rule 720(7) of the Listing Manual. Progress updates on the Sustainability Report 2023 were presented to RMSC and the Board for their consideration and approval. The progress updates include details of the 12 material ESG topics that are pertinent to the Group’s business for FY 2023. More details are elaborated in the sustainability governance structure on the right. Board Composed of 9 directors, of whom 5 are independent non-executive directors and 4 are executive directors • Collectively responsible to ensure there is an appropriate focus on sustainability • Determines the ESG topics identified as material to the business of the Group and ensures that they are monitored and managed • Bears overall responsibility for the Company’s sustainability reporting RMSC Composed of 4 members, majority of whom including the chairman are independent non-executive directors • Assists the Board in reviewing the Group’s risk management system and sustainability-related issues • Recommends the material ESG topics identified and the approach on sustainability reporting to the Board • Ensures ESG topics and relevant sustainability-related issues are appropriately monitored and managed ESG Management Committee Composed of senior management personnel • Formulates policies and implements measures relating to ESG topics • Reviews progress and effectiveness of sustainability measures, as well as performances achieved against sustainability targets • Provides periodic sustainability updates to the RMSC ESG Task Force Composed of cross functional team • Supports formulation and execution of practices and initiatives as well as coordinates the communication with stakeholders both internally and externally • Focuses on various ESG workstreams such as: – Compliance, anti-corruption and risk management, customer privacy; – Climate change - green buildings and operations; – Quality of product and services, including customer satisfaction; – Occupational health and safety; – Employment and training; and – Other sustainability-related workstreams Contents Introduction Approach to Sustainability Upholding Good Governance Caring for Our Customers Empowering Our People Preserving Our Planet Creating Shared Value for Our Society GRI Content Index 9 Yanlord Land Group Limited Sustainability Report 2023
Yanlord proactively interacts with a wide range of stakeholders to better understand their interests, needs and concerns. This enables Yanlord to identify potential risks and opportunities which will effectively guide the formulation of appropriate follow-up actions. In FY 2023, we conducted more than 10 interviews targeting 6 key stakeholder groups, including investors, business partners, suppliers, employees, residents and tenants, with over 20 individuals or organisations participating in the interviews. Additionally, we conducted desktop research on regulatory and media focus to understand the current trend on the market. Through those in-depth communications, we were able to gain an understanding of their knowledge and recommendations on Yanlord’s sustainability disclosure and performance. Further elaborations on engagement with each stakeholder group are as follows: INVESTORS Yanlord prioritises transparency and accuracy in communication with the investment community. Various channels are established to ensure timely publication of both financial and non-financial information to help Yanlord’s investors to make sound judgement and investment decisions. In line with Yanlord’s continuous disclosure obligations, information that is material to the Group including those that may affect the trade, price or value of the Company’s shares is made available immediately and promptly to investors, while information including but not limited to those relating to the Company’s annual general meeting as well as financial results announcements are published within the stipulated period. In addition, investors are also kept abreast of Yanlord’s developments through, among others, occasional analyst and investor meetings as well as other announcements and media or press releases published to the Singapore Exchange’s website and/or made available at Yanlord’s corporate website. Email alert service is available for subscription by investors who wish to be notified of the SGXNET announcements published by the Company. EMPLOYEES Yanlord values its employees across different levels and cares for their wellness as well as personal and professional development. Yanlord is committed to creating and maintain a conducive, safe and healthy working environment for its employees while ensuring the remuneration packages offered to its employees are fair and appropriate. Through a performance appraisal system and taking into consideration corporate performance as well as relevant budget in line with the Group’s business plans, the Group is able to ensure its employees’ remuneration packages are commensurate with their roles, responsibilities and performance as well as the appropriateness and reasonableness of such remuneration packages, while balancing the long-term sustainability and development of the Group’s business. In FY 2023, the Group conducted comprehensive performance appraisals as usual, resumed offline training courses in all business units, and launched a variety of special training courses based on market conditions to help employees adapt to market changes and development. The Company’s intranet is a general communication channel between the Group and its employees, whilst other engagements such as dialogue sessions, counselling services and grievance handling channels are ongoing programs made available to employees to provide continuous support to them. BUSINESS PARTNERS Yanlord believes that longstanding and healthy business relationships are impactful and beneficial to the economic and ESG aspects. The Group maintains both online and offline channels such as dialogue sessions, meetings, conferences and forums to ensure timely communication with business partners to align on expectations. SUPPLIERS Yanlord works closely, and maintains long-lasting business relationships, with suppliers who adhere to regulations and environmental, health and safety (“EHS”) standards. All of Yanlord’s suppliers are required to conduct regular risk assessments relating to EHS. In FY 2023, Yanlord regularly organised seminars as well as peer sharing and ongoing vendor evaluation to align expectations and foster cooperative business relationships. Stakeholder Engagement Contents Introduction Approach to Sustainability Upholding Good Governance Caring for Our Customers Empowering Our People Preserving Our Planet Creating Shared Value for Our Society GRI Content Index 10 Yanlord Land Group Limited Sustainability Report 2023
CUSTOMERS (RESIDENTS, TENANTS, GUESTS AND VISITORS) Yanlord commits to maintaining the highest standards in products and services delivered to its customers and conducts regular satisfaction surveys and leverages its integrated customer and call centres to proactively obtain feedback from its customers. In FY 2023, Yanlord conducted various activities, such as pre-launch media and customer galas, and show suite pre-viewing events, to engage customers across the different markets in which Yanlord operates. We have multiple channels to receive customer feedback including, but not limited to, Customer Relationship Management (“CRM”) data platform, customer service hotline and third-party partner platform rating and feedback mechanisms. All feedback received would be collected for timely review and follow up to continuously improve service levels to customers. Each business unit maintained a vigilant oversight of customer satisfaction, and in FY 2023, satisfaction ratings for sales services, property services and hotel services surpassed the industry’s overarching benchmarks. Stakeholder Engagement (cont’d) LOCAL COMMUNITIES Yanlord operates and grows in a socially responsible manner through efficient use and allocation of resources, with universal design for its properties that maximises the spaces for a safe and healthy lifestyle. Yanlord implements various corporate social responsibility (“CSR”) initiatives, including collaborating with charities and non-profit organisations for community development. Philanthropic donations, in monetary and in-kinds, were delivered towards charitable organisations dedicated to alleviating poverty, advancing education and enhancing health initiatives. In FY 2023, Yanlord made donations to the Glaucoma Treatment Program, the Community Elderly Care Program, and the Educational Assistance Program for underdeveloped areas of the PRC. MEDIA Yanlord keeps both online and offline engagement channels open and active, including but not limited to annual reports, project launch functions, media or press releases and interviews, to ensure transparent and timely communication of information relating to the Group such as information on business operations and performance as well as corporate and business updates with the media, which are also made available publicly. REGULATORS Yanlord is committed to regulatory compliance and where possible, subscribes to industry update meetings, policy awareness briefings, news releases by government authorities and participation in workshops/seminars on topics relating to the new (including changes of) policies or measures in order to keep abreast with new rules and regulations development. Contents Introduction Approach to Sustainability Upholding Good Governance Caring for Our Customers Empowering Our People Preserving Our Planet Creating Shared Value for Our Society GRI Content Index 11 Yanlord Land Group Limited Sustainability Report 2023
Key Stakeholder Groups Key Concerns/ Interests Raised by Stakeholder Group Yanlord’s Response Modes of Engagement Frequency of Engagement Investors • Yanlord’s growth strategy and market outlook • Business operations and performance • Maximise shareholder returns, maintain good corporate governance for continued business success • Transparent and timely communication of both financial and non-financial information Annual General Meeting (conducted virtually in 2023), Annual Report and Sustainability Report Annually Financial results announcements and briefings (conducted virtually in 2023) Half-yearly Analyst and investor meetings Ongoing Announcements, media releases, and interviews through Company’s website and via email alerts Ongoing Presentations As appropriate Business Partners • Longstanding and healthy business relationships which are impactful and beneficial in relation to the economic and ESG aspects • Transparent and timely communication with business partners • Align expectations between both parties through regular engagement Dialogue sessions, town halls, and forums Ongoing Announcements, media releases, and interviews through Company’s website and via email alerts Ongoing Presentations As appropriate Suppliers • Cooperative and long-lasting business relationships • Adherence to regulations and EHS standards • Align expectations between both parties through regular reviews • Ensure regular risk assessments relating to EHS is conducted EHS assessment Annually Seminars and peer sharing Quarterly Vendor evaluation Annually Employees • Conducive, safe and healthy work environment • Competitive salary rates, fair remuneration, compensation and benefits • Training and development opportunities • Talent retention and career advancement • Employee wellness • Provide performance appraisal system to review development of employees • Identify potential staff for career advancement opportunities • Provide work and non-work related workshops and learning opportunities to improve both technical skill sets and employee well-being Employee performance review Annually Dialogue sessions, town hall meetings, and forums Ongoing News bulletin and announcements via Company intranet Ongoing Employee assistance programme (counselling service) Ongoing Employee grievance handling channel Ongoing Employee volunteering platform Ongoing Training and development programmes Ongoing Stakeholder Engagement (cont’d) Contents Introduction Approach to Sustainability Upholding Good Governance Caring for Our Customers Empowering Our People Preserving Our Planet Creating Shared Value for Our Society GRI Content Index 12 Yanlord Land Group Limited Sustainability Report 2023
Key Stakeholder Groups Key Concerns/ Interests Raised by Stakeholder Group Yanlord’s Response Modes of Engagement Frequency of Engagement Customers • Customer satisfaction • Quality of Yanlord’s services and property assets • Maintain highest standards in product and services delivered • Increase value added to customers • Timely response and prompt follow-up actions taken to address customers' feedback • Closely monitor property assets through frequent inspections and conduct regular maintenance and repair works Customer satisfaction surveys Annually Tenant satisfaction surveys Annually Tenant engagement/ networking events Quarterly Integrated customer and call centre Ongoing Show suites feedback Ongoing Campaigns and programs Ongoing Welcome parties As appropriate Healthy Workplace Ecosystem Ongoing Local Communities • Yanlord’s support towards the local community • Safe and healthy spaces • Responsible use of resources • Operate and grow the business in a socially responsible manner through efficient use and allocation of resources • Support initiatives that focus on corporate giving through implementing CSR practices • Universal design for homes and offices Collaborations with charities and non-profit organisations for community development Ongoing Monetary and in-kind donations or supports Ongoing Media • Business operations and performance • Sustainability initiatives of Yanlord • Transparent and timely communication of both financial and non-financial information Annual Report and Sustainability Report Annually Project launch functions As appropriate Announcements, media releases, and interviews through Company’s website and via email alerts As appropriate Regulators • Corporate governance • Compliance with laws and regulations • Ensure regulatory compliance • Closely monitoring new (including changes of) policies or measures introduced by relevant government authorities or departments to keep abreast with new rules and regulations Industry update meetings, policy awareness briefings, news releases by government authorities and participation in workshops/seminars on topics relating to the new (including changes of) policies or measures Ongoing Stakeholder Engagement (cont’d) Contents Introduction Approach to Sustainability Upholding Good Governance Caring for Our Customers Empowering Our People Preserving Our Planet Creating Shared Value for Our Society GRI Content Index 13 Yanlord Land Group Limited Sustainability Report 2023
Materiality Assessment A holistic understanding of stakeholders’ concerns and the issues that matter the most to them, facilitates the prioritisation of ESG topics of Yanlord. As Yanlord draws upon insights from its regular interactions with key stakeholders as well as the ever-changing business environment, it assesses the continued relevance of its material ESG topics on an annual basis. Following the reassessment in FY 2023, “Sustainable Supply Chain” was added as one of the material topics as it is highly relevant to Yanlord’s operation and focused by the industry. In addition, the material topic of “Employment and Training” was split into two separate topics, “Employment” and “Learning and Development”, in order to provide indepth disclosure on these two topics. Yanlord’s other existing material ESG topics remain relevant to the Group’s business for FY 2023. Results of the materiality reassessment were subsequently presented to the RMSC and the Board for their consideration and approval. Low Importance to Internal Stakeholders High Low Importance to External Stakeholders High ESG topics which are not selected for reporting have been omitted from the materiality matrix 12 9 10 5 6 7 4 8 3 2 11 1 CATEGORIES AND GRI STANDARDS OF YANLORD MATERIAL ESG TOPICS MATRIX OF YANLORD MATERIAL ESG TOPICS No. ESG Category Material ESG Topics GRI Topic Standards Boundary of Impact 1 Governance Anti-Corruption and Business Ethics GRI 205 Within and outside Yanlord 2 Governance Compliance with Laws and Regulations GRI 2 Within Yanlord 3 Social Quality of Products and Services GRI 416 Within and outside Yanlord 4 Social Customer Privacy GRI 418 Within and outside Yanlord 5 Social Learning and Development GRI 404 Within Yanlord 6 Social Employment GRI 401, 405 Within Yanlord 7 Social Sustainable Supply Chain GRI 308, 414 Within and outside Yanlord 8 Social Occupational Health and Safety GRI 403 Within and outside Yanlord 9 Environmental Climate Change GRI 302, 305 Within and outside Yanlord 10 Environmental Green Buildings GRI G4 – CRE 8, GRI 303, 306 Within and outside Yanlord 11 Economic Economic Performance GRI 201 Within and outside Yanlord 12 Social Local Community and Social Investment GRI 413 Outside Yanlord Contents Introduction Approach to Sustainability Upholding Good Governance Caring for Our Customers Empowering Our People Preserving Our Planet Creating Shared Value for Our Society GRI Content Index 14 Yanlord Land Group Limited Sustainability Report 2023
Sustainable Development Goals Since 2020, Yanlord has been aligning its sustainability efforts to the United Nations Sustainable Development Goals (“UN SDGs”), consistently mapping its material topics to nine (9) UN SDGs, as summarised in the table below: UN SDGs Corresponding Material ESG Topics Goal 3 Ensure healthy lives and promote well-being for all at all ages 4 Green Buildings 4 Occupational Health and Safety Goal 7 Ensure access to affordable, reliable, sustainable and modern energy for all 4 Climate Change Goal 8 Promote inclusive and sustainable economic growth, employment and decent work for all (promote safe and secure working environments) 4 Economic Performance 4 Employment 4 Learning and Development 4 Occupational Health and Safety Goal 9 Build resilient infrastructure, promote inclusive and sustainable industrialisation and foster innovation 4 Economic Performance 4 Quality of Products and Services 4 Sustainable Supply Chain Goal 10 Reduce inequality within and among countries 4 Employment 4 Sustainable Supply Chain UN SDGs Corresponding Material ESG Topics Goal 11 Make cities and human settlements inclusive, safe, resilient and sustainable 4 Green Buildings Goal 12 Ensure sustainable consumption and production patterns 4 Green Buildings 4 Climate Change 4 Sustainable Supply Chain Goal 13 Take urgent action to combat climate change and its impacts 4 Climate Change Goal 16 Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels 4 Anti-Corruption and Business Ethics 4 Compliance with Laws and Regulations 4 Customer Privacy Contents Introduction Approach to Sustainability Upholding Good Governance Caring for Our Customers Empowering Our People Preserving Our Planet Creating Shared Value for Our Society GRI Content Index 15 Yanlord Land Group Limited Sustainability Report 2023
UPHOLDING GOOD GOVERNANCE Contents Introduction Approach to Sustainability Upholding Good Governance Caring for Our Customers Empowering Our People Preserving Our Planet Creating Shared Value for Our Society GRI Content Index 16 Yanlord Land Group Limited Sustainability Report 2023
The Board and management believe that good corporate governance is key to the integrity of the Group and essential to the sustainability of the Group’s business and performance. The Company’s corporate governance practices, with specific reference to the principles and provisions set out in the Code of Corporate Governance issued by the Monetary Authority of Singapore dated August 6, 2018, as last amended on January 11, 2023, and the complementary practice guidance dated December 14, 2023, can be found in the “Corporate Governance” section of the Annual Report 2023, which is also made available on Yanlord’s website at www.yanlordland.com/corporate-governance. BOARD OF DIRECTORS Total 9 Directors 5 Independent Non-Executive Directors 4 Non-Independent Executive Directors Lead Independent Director Hee Theng Fong Key Objective Oversees the business affairs and dictates the strategic direction and management of the Company as well as ensures that obligations to the Shareholders and other stakeholders are met CHAIRMAN AND CEO Zhong Sheng Jian Key Objective Leads the Board to ensure its effectiveness on all aspects of its roles and provides close oversight, guidance and leadership to Management EXECUTIVE DEPUTY CHAIRMAN Zhong Ming Key Objective Oversees the execution of the Group’s overall strategies and its business operations and management, with primary focus on Nanjing, Yangzhou, Wuhan and Chengdu in the PRC as well as Singapore AUDIT COMMITTEE RISK MANAGEMENT AND SUSTAINABILITY COMMITTEE NOMINATING COMMITTEE REMUNERATION COMMITTEE Chairman Hong Pian Tee 5 Independent Non-Executive Directors Key Objective Assists the Board in discharging its responsibilities on matters relating to financial, accounting and internal controls and ensures that Management establishes and maintains an effective control environment within the Group Chairman Chua Taik Him 3 Independent Non-Executive Directors 1 Non-Independent Executive Director Key Objective Assists the Board in ensuring the adequacy and effectiveness of risk management system of the Group as well as the appropriateness of the monitoring and management of sustainability matters including the Company’s approach to sustainability reporting Chairman Tan Chin Siong 3 Independent Non-Executive Directors 1 Non-Independent Executive Director Key Objective Reviews and recommends to the Board on directors’ appointments and re-appointments, renewal of the Board or various Board Committees, succession plans for directors, the Chairman and CEO and key management personnel, training and professional development programmes for directors, and the effectiveness of the Board and each Board Committee as well as contribution by the Chairman and each individual director to the Board, whilst ensuring an appropriate level of independence and adequate diversity on the Board Chairman Teo Ser Luck 4 Independent Non-Executive Directors Key Objective Reviews and recommends to the Board an appropriate framework of remuneration for the Board and key management personnel and specific remuneration package for each director and key management personnel RISK CONTROL AND MANAGEMENT DEPARTMENT EXTERNAL AUDITORS INTERNAL AUDIT DEPARTMENT GROUP STRATEGIC COMMITTEE Comprising 4 professional management sub-committees namely, Investment Management Committee, Operational Management Committee, Financial Management Committee and Remuneration Committee, each of which is made up of top executives of business and support units Key Objective Manages business operation activities and ensures adequacy and effectiveness of control procedures ESG MANAGEMENT COMMITTEE Head Zhang Hao Ning, Executive Vice President Members Made up of senior management personnel Key Objective Supports the Risk Management and Sustainability Committee in the aspect of sustainability, including formulating and supervising policies and implementing measures relating to sustainability issues as well as reviewing progress of sustainability plans and performance of sustainability targets ESG TASK FORCE Comprising cross functional team Key Objective Supports the formulation and execution of practices and initiatives, as well as coordinates the communication with stakeholders both internally and externally, on various environmental, social and governance workstreams Yanlord’s corporate governance structure is outlined below: Contents Introduction Approach to Sustainability Upholding Good Governance Caring for Our Customers Empowering Our People Preserving Our Planet Creating Shared Value for Our Society GRI Content Index 17 Yanlord Land Group Limited Sustainability Report 2023
MANAGEMENT APPROACH Yanlord has implemented a robust system to combat bribery, corruption, and fraud, incorporating a comprehensive management system with policies and procedures to prevent unethical practices across our business operations. This system is aligned with the ISO 37001 Anti-bribery Management Systems Standards, encompassing eight major control measures, and extends its focus beyond ISO 37001 to include fraud, cartel, competition, and money-laundering considerations. Elements from the Hong Kong SAR’s Independent Commission Against Corruption Framework are also integrated. The Board closely monitors internal controls, risk management, and sustainability matters, including anti-corruption and business ethics, with support from the Audit Committee (“AC”) and RMSC, aided by the Internal Audit (“IA”) Department. Regular and ad hoc internal audits are conducted across the Group, with findings reported to the AC or RMSC and subsequently to the Board. The Risk Control and Management (“RCM”) Department monitors daily business and operational processes, sharing findings with relevant management for necessary improvements. The IA Department reports key findings to the AC and/or RMSC for regular review, with the Board providing approval based on recommendations from the AC or RMSC. Immediate reporting of material findings is mandatory. Communication of Our Ethical Business Standards Group-wide training on our Code of Business Conduct (“Business Conduct Code”) is provided during employee onboarding, covering procedures for reporting misconduct or grievances. Employees acknowledge their understanding of the Business Conduct Code, which is publicly available on Yanlord’s website. Additional manuals and documents are accessible on Yanlord’s intranet. Video training on anti-corruption is provided to directors, emphasising the zero-tolerance approach to corruption and bribery outlined in the Business Conduct Code. Our Partnership Statement outlines expectations for fair and honest dealing, and stakeholders are encouraged to raise concerns about improper conduct within the Group. Anti-Corruption and Business Ethics Our Policies, Manuals and Documentation including but not limited to • Code of Business Conduct • Group Tendering Management Policy • Guidelines for Yanlord’s Agent Management System for Disclosures • Statement of Yanlord Land Cooperative Relationship • Project Procurement Risk Control Work Manual • Construction Work Change Approval-related Risk Control Manual • Project Contract Management Risk Control Work Manual • Marketing Procurement Risk Control Work Manual • Marketing Expense Contract Risk Control Work Manual • Sales Management Risk Control Work Manual • Financial Management Risk Control Audit Work Manual • Property Management Risk Control Audit Work Manual Contents Introduction Approach to Sustainability Upholding Good Governance Caring for Our Customers Empowering Our People Preserving Our Planet Creating Shared Value for Our Society GRI Content Index 18 Yanlord Land Group Limited Sustainability Report 2023
Whistleblowing Mechanism Yanlord’s Whistleblowing Policy delineates the procedures for a whistleblower, who can be an employee of the Group or any other persons, to report in confidence to the Company any potential improprieties, encompassing malpractices, irregularity, corruption, bribery, fraud, unethical or unlawful conduct and/or any other misconduct or wrongdoing relating to the Group and our employees or officers, without fear of reprisal, detriment, unfair treatment or other retaliatory action. Procedures for lodging complaints, handling complaints, maintaining confidentiality, and conducting investigations are also outlined in the policy. The policy covers a range of concerns that could materially impact the Group, including but not limited to actions leading to inaccurate financial reporting, unlawful practices, deviations from legal obligations, violations of the Group’s policies or practices, threats to individual health and safety, potential damage to the Group’s financial health or public image, malpractice of professional ethical standards, deliberate concealment of serious wrongdoing or misconduct, fundamental breaches of internal controls, improper conduct, or intentional concealment of information revealing any of the aforementioned issues. We are pleased to announce that there were no whistleblowing complaints received by the Group during FY 2023. TARGET AND PERFORMANCE Perpetual Target FY 2023 Performance Zero incidents of corruption and unethical business conduct in all our business operations Achieved Zero incidents of breach of the Business Conduct Code Achieved Anti-Corruption and Business Ethics (cont’d) All cases received are reviewed by the authorised person of our IA and the details of the cases are recorded in the Complaints Register. Where cases are confirmed, the IA will report to the AC accordingly. The AC decides on the appropriate actions in the best interests of the Group which can include conducting further investigation and involving IA and/or relevant key management staff (or engaging such third parties) to take such action as it deems appropriate. Following the investigation, a formal report will be submitted to AC. The AC shall review the report and advise and authorise the relevant personnel (or third-parties) to take the appropriate actions in respect of the investigated incident (if applicable) such as to take remedial action. Reporting of incidents or concerns can be raised via email or mail to the authorised person of our IA. To facilitate investigation, the whistleblower should provide specific and factual information whenever possible. Every effort will be made to protect the complainant’s identity and shall be kept strictly confidential, except under limited circumstances as set out in the Whistleblowing Policy where disclosure of the information is necessary. REVIEW AND INVESTIGATION OUTCOME OF REVIEW Procedures relating to Whistleblowing Contents Introduction Approach to Sustainability Upholding Good Governance Caring for Our Customers Empowering Our People Preserving Our Planet Creating Shared Value for Our Society GRI Content Index 19 Yanlord Land Group Limited Sustainability Report 2023
MANAGEMENT APPROACH Yanlord is dedicated to upholding the highest standards of ethical behaviour and governance, committing to compliance with all applicable laws and regulatory requirements in the diverse markets where we operate. We recognise that responsible and ethical conduct is integral to building trust, fostering strong relationships with stakeholders, and achieving sustained success over the long term. We aim to achieve full regulatory compliance in our business dealings, ensuring not only the continuity of our operations but also facilitating effective risk management within our business context. The potential consequences of non-compliance underscore the importance of adhering to regulatory standards. Across key markets in the PRC (including Hong Kong SAR) and Singapore, we have identified relevant laws and regulatory obligations covering building standards, labour practices, workplace health and safety, data privacy, and environmental protection. Compliance with Laws and Regulations In our day-to-day operations, various business functions within the Group actively monitor updates and changes in laws and regulations. These insights guide updates to internal procedures as needed, ensuring that Yanlord’s operations consistently comply with regulatory requirements. Significant changes are communicated to the Board and relevant stakeholders as necessary. Additionally, the IA Department conducts regular internal checks to ensure overall compliance with laws and regulations. Findings from these checks are reported to the AC and Board on a quarterly basis. Complementary training courses are provided to empower our employees with the knowledge needed to stay informed about regulatory changes and adhere to leading practices in regulatory compliance. This proactive approach ensures that our team remains well-equipped to apply regulatory compliance measures seamlessly in their work at Yanlord. TARGET AND PERFORMANCE Perpetual Target FY 2023 Performance No significant fines or non-monetary sanctions have been incurred for non-compliance related to laws and regulations, encompassing environmental and socioeconomic compliance. Achieved Contents Introduction Approach to Sustainability Upholding Good Governance Caring for Our Customers Empowering Our People Preserving Our Planet Creating Shared Value for Our Society GRI Content Index 20 Yanlord Land Group Limited Sustainability Report 2023
CARING FOR OUR CUSTOMERS Contents Introduction Approach to Sustainability Upholding Good Governance Caring for Our Customers Empowering Our People Preserving Our Planet Creating Shared Value for Our Society GRI Content Index 21 Yanlord Land Group Limited Sustainability Report 2023
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