YANLORD LAND GROUP LIMITED SUSTAINABILITY REPORT 2024 Embracing Change Forging Forward with Resilience 3
2 Introduction 3 About Yanlord 4 About this Report 5 2024 Sustainability Highlights 6 Major 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 38 Customer Privacy 40 Empowering Our People 41 Employment 49 Learning and Development 52 Occupational Health and Safety 59 Preserving Our Planet 60 Climate Change 64 Green Buildings 76 Creating Shared Value for Our Society 77 Economic Performance 78 Sustainable Supply Chain 79 Local Community and Social Investment 81 GRI Content Index CONTENTS
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 2024
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 become synonymous with quality, establishing itself as a premium brand within the property development industry in the PRC. Currently, Yanlord has an established presence in over 20 key high-growth cities across 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. Since 2003, 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 serve as long-term investments for the Group. For more details on our portfolio, please refer to Yanlord’s Annual Report for the financial year ended December 31, 2024 (“FY 2024”) (“Annual Report 2024”). MISSION STATEMENT Managing with benevolence and integrity, achieving perpetuity through perseverance 仁信治业 持之以恒 CORPORATE PHILOSOPHY Developing land with devotion, building quality accommodation with passion 善待土地 用心造好房 RMB36.397 billion in revenue RMB687 million of loss before income tax RMB3.763 billion of loss for the year KEY FINANCIAL HIGHLIGHTS FOR FY 2024 OUR CORE VALUES RMB3.422 billion of loss attributable to owners of the Company RMB22.206 billion of property contracted pre-sales of the Group together with its joint ventures and associates for a total gross floor area (“GFA”) of 0.923 million square metres (“sqm”) RMB116.677 billion in total assets as at December 31, 2024 RMB3.076 billion of corporate income tax 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 2024
ABOUT THIS REPORT Amid evolving economic landscapes and market uncertainties, Yanlord remains dedicated to integrating sustainability into its business strategy. By fostering resilience, innovation, and responsible growth, Yanlord continues to create long-term value for its stakeholders, including employees, customers and local communities. Upholding strong corporate governance and environmental stewardship, Yanlord strives to contribute to a more sustainable and inclusive future while maximising shareholder returns. Yanlord continues to enhance the quality of its sustainability disclosures, and key updates set out in this Sustainability Report for FY 2024 (“Sustainability Report 2024”) encapsulate: • reviewed the list of material issues and enhanced the disclosure based on stakeholders’ feedback; and • improved disclosures with reference to the Global Reporting Initiative (“GRI”) 2021 standards (“GRI Standards 2021”) and Task Force on Climate-related Financial Disclosures (“TCFD”) recommendations. We have conducted an internal review over selected sustainability aspects for FY 2024. While we have not conducted an external independent assurance for our sustainability reporting for this period, we will consider doing so in future as our sustainability reporting practices mature and in alignment with the requirements of the Sustainability Reporting Advisory Committee. REPORTING SCOPE AND PERIOD Unless otherwise stated, the sustainability reporting scope for FY 2024 covers: The People’s Republic of China • Yanlord’s main business segments i. Property Development1 ii. Managed Properties2 iii. Hotels & Serviced Apartments • Yanlord Corporate Office Singapore • United Engineers Limited i. Property-related Business ii. Non-property related Business • Yanlord Corporate Office Hong Kong Special Administrative Region • Yanlord Corporate Office REPORTING STANDARDS The Sustainability Report 2024 is prepared with reference to the GRI Standards 2021 and the sustainability reporting requirements set out in the Listing Manual of the Singapore Exchange Securities Trading Limited. In addition, the GRI G4 Construction and Real Estate (“CRE”) Sector Disclosures and TCFD recommendations are included in this Sustainability Report 2024. 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 managing ESG topics to its stakeholders. This Sustainability Report 2024 should be read together with the Annual Report 2024 for a comprehensive view of Yanlord’s businesses and performance. FEEDBACK We welcome any feedback, comments or suggestions relating to this Sustainability Report 2024 or on our sustainability approach and practices. Please direct your queries to: Human Resource and 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). 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 2024
2024 SUSTAINABILITY HIGHLIGHTS Revenue of the Group RMB36.397 billion for FY 2024 2024 TOP 50 China Real Estate Developers 2024 TOP 10 China Foreign Real Estate Developers Cangjie Commercial Plaza in Suzhou was awarded The 2024 Winner of Best Retail Project Silver and Special Jury Award at the MIPIM Asia Awards Shanghai Yanlord Property Management was awarded Five-star Enterprise for Shanghai’s Comprehensive Property Service Capability ECONOMIC ENVIRONMENTAL SOCIAL GOVERNANCE 100% Property Under Development across the PRC and Singapore met Green Building design requirements Poetic Villa in Shanghai was awarded Shanghai Ultra-Low Energy Consumption Building Evaluation and Certification Riverside City in Jinan has attained Gold Certification of Healthy Building Design Majestic Mansion in Wuxi has attained Green Building Three-Star Pre-certification The kindergarten in Yanlord Riverside Gardens (Phase 2) in Yancheng has attained Green Building Two-Star Certification 29% female executive management and supervisors Zero occupational diseases and work-related fatalities Zero incidents of non-compliance concerning health and safety impacts of products and services Continuous Employment Engagement through annual townhall and employee appreciation events 87% customer satisfaction score from annual customer satisfaction survey for customers in the PRC Majority-Independent Board of Directors comprises 7 directors, of whom 4 are independent non-executive directors and 3 are executive directors MSCI-ESG Rating maintained at A Zero incidents of corruption or unethical business conduct across all business operations 100% anti-corruption training coverage for property business in the PRC 100% coverage of new projects on Sunshine Procurement Platform (Anti-bribery and anti-corruption policy included as part of contract terms with suppliers) 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 2024
MAJOR AWARDS Yanlord Land Pte. Ltd. • 2024 TOP 50 China Real Estate Developers • 2024 TOP 10 China Foreign Real Estate Developers Shanghai Yanlord Property Management Co., Ltd. • 2024 Five-star Enterprise for Shanghai’s Comprehensive Property Service Capability • 2024-2025 Shanghai Property Management Industry AAA Enterprise in Integrity Commitment • 2024 Shanghai Top 100 Property Management Companies • 2024 Shanghai Property Management Industry Association Excellent Member • 2024 Shanghai Excellent Property Management Demonstration Project (Residential Property) for Fortune Residence1, Yanlord Eastern Gardens and Green Villas Phase 7-91 • Shanghai Three-Star Quiet Residential Area for Yanlord Townhouse and Yanlord Riverside Gardens Chengdu Yanlord Property Management Co., Ltd. • 2024 Top 100 Brands in the Property Management Industry of the 9th China International Property Management Summit Forum Zhuhai Yanlord Property Management Co., Ltd. • 5-star Property Management Service for Yanlord Marina Peninsula Gardens and Yanlord Marina Centre • 4-star Property Management Service for Yanlord New City Gardens Yanlord Gardens (Phase 1), Haikou • 2024 Hainan Provincial Excellent Property Service Project • 2024 Haikou Excellent Property Service Project LONG BAY, Nanjing • 2024 CRIC Nanjing Top 10 Product Power Projects • 2024 Chinese Influential Luxury Residence of the 12th Global Chinese Real Estate Summit Yanlord The Great Bay, Zhuhai • First prize in the ‘Residential and Residential District Design’ category of the 2024 Zhuhai Excellent Engineering Exploration and Design Award Yanlord Century Gardens, Jinan • Excellent Project in Engineering Quality at the 11th Guangsha Award Yanlord Century Plaza, Jinan • Excellent Project in Planning and Architectural Design at the 11th Guangsha Award The Mansion in Park, Jinan • Shandong Provincial High-quality Pilot Residential Project • Jinan High-quality Residential Project Riverside City, Jinan • Shandong Provincial High-quality Pilot Residential Project Cangjie Commercial Plaza, Suzhou • The 2024 Winner of Best Retail Project Silver and Special Jury Award at the MIPIM Asia Awards • First Prize in Architectural Engineering Design at 2024 Suzhou Exploration and Design Project Competition • The Best Commercial Interior Design Award at the 2024-2025 Asia Pacific Property Awards Yanlord Central Lake, Taicang • Second Prize in Building Structure Special Project at 2024 Suzhou Exploration and Design Project Competition Yanlord Reverie Plaza, Shenzhen • Best Commercial Interior Design Award at the 2024-2025 Asia Pacific Property Awards Yanlord ParcVue • The Most Potential Hotel Group of China Hospitality Industry at the 2024 China Hospitality Brand Value Award Grand ParcVue Hotel Residence, Chengdu • Silver Sponsor of Singapore 59th National Day Celebration in Chengdu, 2024 • Best Premium Lifestyle Hotel Apartment at the 2024 Asia Best Travel Awards • The Outstanding Serviced Apartment of China Hospitality Industry at the 2024 China Hospitality Brand Value Award • Popular Serviced Apartment at the 2024 Hotels New Rank Awards • Certificate of Donation by Shanghai Huji Foundation • Charity Award by Singapore Chamber of Commerce and Industry in Sichuan, China • 9.4 Customer Review Award - Agoda • Gold Circle Award Winner- Agoda • 9 out of 10, Traveller Review Awards 2024 - Booking.com ParcVue Hotel Residence, Nanjing • The Most Attractive City Serviced Apartment of China Hospitality Industry at the 2024 China Hospitality Brand Value Award • Popular Serviced Apartment at the 2024 Hotels New Rank Awards • 2024 Annual Most Distinctive Hotel – Trip.com Group InterContinental Hotel, Zhuhai • 2024 Q1 IHG Silver Dragon Award • Urban Resort Hotel at the 2024 HOSPITALITY AWARDS • 2024 Premium Hotel - Trip.com Group • 2024 Wedding Banquet Hotel at the 8th Hotel Discovery Awards Crowne Plaza Sanya Haitang Bay Resort, Sanya • 2024 Q1 IHG Silver Dragon Award • 2024 Global 100 Family Hotel – Trip.com Group • 2024 Excellent Business - Fliggy • 2024 Star Hotel - Fliggy • 2024 “11.11” Outstanding Hotel - Fliggy 1 Fortune Residence and Green Villas Phase 7-9 are third-party projects under Yanlord’s property management portfolio. 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 2024
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 2024
BOARD STATEMENT The Board of Directors of the Company (“Board”) is pleased to present Yanlord’s eighth Sustainability Report. Yanlord remains committed to delivering high-quality products and services that meet the evolving expectations of its customers. In an increasingly competitive and rapidly transforming real estate market, we believe that our commitment to excellence, innovation, and sustainability distinguishes us and drives our long-term success. Sustainability remains a core strategic priority, guiding our operations and ensuring that we create lasting value for our stakeholders across our business. Yanlord’s sustainability governance structure led by the Board, which oversees key business affairs and strategic directions of the Group, with an appropriate focus on sustainability. The Board, supported by the Risk Management and Sustainability Committee (“RMSC”) , ensures 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 review carried out in FY 2024, the existing 12 material topics remain relevant to our business. Results of the review were presented to the RMSC and the Board for review and subsequently, it was determined that the 12 material ESG topics continue to be pertinent to the Group’s business for FY 2024. In 2024, the PRC’s real estate sector remained under pressure, while the industry continued its transition toward a more demand-driven and sustainability-oriented model. National and local authorities have implemented targeted measures to stabilise the market, promote high-quality urban development, and address the residents’ housing needs. Amid this challenging yet transformative environment, Yanlord remained fully compliant with regulatory requirements, prioritised quality, and customer experience, and consistently delivered premium residential developments. Our unwavering commitment to excellence has enabled us to sustain customer satisfaction levels above the industry average. In this Sustainability Report 2024, we further enhanced our ESG disclosures, reflecting our ongoing efforts to improve transparency and stakeholder communication. Guided by the GRI Standards 2021, we have expanded our reporting on climate resilience, supply chain sustainability, and responsible corporate governance. These enhancements reflect our determination to integrate sustainability across all levels of our operations and address stakeholder concerns in a meaningful way. While we acknowledge the progress made, we remain mindful of the continued need for innovation and collaboration in our sustainability journey. Looking ahead, we will stay steadfast in our commitment to sustainability goals, take proactive steps to manage environmental and social risks, and work closely with our partners and communities to build a more resilient, inclusive, and 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 Yanlord Land Group Limited Sustainability Report 2024
comprises seven directors, of whom three are executive directors and four are independent non-executive directors • Ultimately responsible to ensure there is an appropriate focus and commitment on sustainability • Determines the ESG topics identified as material and pertinent to the business of the Group and ensures that they are appropriately monitored and managed • Bears overall responsibility for the Company’s sustainability reporting comprises three members, of whom majority 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 identified material ESG topics and the approach on sustainability reporting to the Board • Ensures ESG topics and relevant sustainability-related issues are appropriately monitored and managed comprises 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 comprises 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: o Compliance, anti-corruption, risk management, and customer privacy; o Climate change - green buildings and operations; o Quality of product and services, including customer satisfaction; o Occupational health and safety; o Employment and training; and o Other sustainability-related workstreams 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, supported by the RMSC, ensures an appropriate focus on sustainability. The RMSC oversees the ESG Management Committee, comprising senior management personnel who formulate and supervise policies and initiatives related to Yanlord’s material ESG topics. With the support of the ESG Task Force, specific sustainability practices are shared across departments and communicated to stakeholders. Progress updates on the Sustainability Report 2024 were presented to RMSC and the Board for their consideration and approval. These updates include details of the 12 material ESG topics pertinent to the Group’s business for FY 2024. SUSTAINABILITY GOVERNANCE STRUCTURE BOARD ESG MANAGEMENT COMMITTEE ESG TASK FORCE RMSC 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 2024
STAKEHOLDER ENGAGEMENT Yanlord proactively interacts with a diverse range of stakeholders to better understand their interests, needs and concerns. This proactive approach enables Yanlord to identify potential risks and opportunities, effectively guiding the formulation of appropriate follow-up actions. Yanlord leverages on a myriad of channels to proactively engage with its key stakeholders. Further elaborations on each stakeholder group are as follows: INVESTORS Yanlord prioritises transparency and accuracy in its communication with the investment community. Various channels are established to ensure timely dissemination of both financial and non-financial information, facilitating investors in making their judgement and investment decisions. In line with Yanlord’s continuous disclosure obligations, material information relevant to the Group, including those that may affect the trading price or value of the Company’s shares, is disclosed immediately and promptly, while information such as details of the Company’s annual general meeting as well as financial results announcements is 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 on the Singapore Exchange’s website and Yanlord’s corporate website. Email alert service is available for subscription by investors who wish to be notified of the announcements published by the Company. BUSINESS PARTNERS Yanlord believes that long-standing 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 expectations. SUPPLIERS Yanlord collaborates closely, and maintains long-lasting business relationships, with suppliers who adhere to regulatory requirements and environmental, health and safety (“EHS”) standards. All suppliers are required to conduct regular risk assessments relating to EHS. In FY 2024, Yanlord continued to organise seminars as well as peer-sharing sessions and ongoing vendor evaluations to align expectations and foster cooperative business relationships. EMPLOYEES Yanlord values its employees at all levels and cares for their wellness as well as personal and professional development. The Group is committed to creating and maintaining 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 structured performance appraisal system and taking into consideration corporate performance as well as relevant budget in line with the Group’s business plans, the Group ensures that 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 Group’s long-term sustainability and growth. In FY 2024, the Group conducted comprehensive performance appraisals in line with established practice and launched a variety of specialised training courses tailored to market conditions to help employees adapt to market changes and development. The company intranet serves as a key communication platform between the Group and its employees, while ongoing engagements such as dialogue sessions, counselling service and grievance-handling channel provide continuous support to employees. 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 2024
CUSTOMERS (RESIDENTS, TENANTS, GUESTS AND VISITORS) Yanlord remains committed 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 gather feedback from its customers. In FY 2024, Yanlord conducted various activities, such as pre-launch media and customer galas, show suite pre-viewing events, to engage customers across the different markets in which Yanlord operates. The Group provides multiple channels for receiving 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 is systematically collected for timely review and follow up to continuously improve service levels. Each business unit continues to monitor customer satisfaction, and in FY 2024, customer satisfaction levels for sales services, property services and hotel services remained above the industry average. 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 actively engages in various Corporate Social Responsibility (“CSR”) initiatives, including collaborations with charities and non-governmental organisations for community developments. Philanthropic donations, in monetary and in-kinds, made to charitable organisations focused on alleviating poverty, and promoting education and health. In FY 2024, Yanlord made donations to the Jiangsu Renyi Foundation, followed through the “Road to Brightness 2.0” charity project and sponsored various community activities across Yanlord’s managed properties. MEDIA Yanlord keeps both online and offline engagement channels open and active, through annual reports, project launch functions, media or press releases, interviews, and other means, to ensure transparent and timely communication of information related to the Group such as business operations, performance and corporate updates. This information is shared with the media and made publicly available. REGULATORS Yanlord is committed to regulatory compliance and subscribes to industry update meetings, policy awareness briefings, news releases by government authorities and participates in workshops/seminars on topics related to new (including changes of) policies or measures to keep abreast of the development of rules and regulations. 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 11 Yanlord Land Group Limited Sustainability Report 2024
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 (resumed physical meeting in 2024), Annual Report and Sustainability Report Annually Financial results announcements and briefings Half-yearly Analyst and investor meetings Ongoing Announcements and media releases 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 Ongoing Presentations As appropriate Suppliers • Cooperative and long-lasting business relationships • Adherence to regulations and EHS • Align expectations between both parties through regular reviews • Risk assessments 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 skill sets and employee well-being • Gather feedback to identify areas for improvement and rationale for departure Employee performance review Annually Dialogue sessions, town hall meetings, and forums Ongoing News bulletin and announcements via Company intranet Ongoing Employee assistance programme Ongoing Employee grievance handling channel Ongoing Employee volunteering platform Ongoing Training and development programmes Ongoing Exit Interview As appropriate 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 12 Yanlord Land Group Limited Sustainability Report 2024
STAKEHOLDER ENGAGEMENT 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 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 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 2024
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 review in FY 2024, Yanlord’s existing material ESG topics remain relevant to the Group’s business. Results of the review were 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 No. ESG Category Material 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 2024
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 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 • Green Buildings • Occupational Health and Safety Goal 7 Ensure access to affordable, reliable, sustainable and modern energy for all • Climate Change Goal 8 Promote inclusive and sustainable economic growth, employment and decent work for all (promote safe and secure working environments) • Economic Performance • Employment • Learning and Development • Occupational Health and Safety Goal 9 Build resilient infrastructure, promote inclusive and sustainable industrialisation and foster innovation • Economic Performance • Quality of Products and Services • Sustainable Supply Chain Goal 10 Reduce inequality within and among countries • Employment • Sustainable Supply Chain UN SDGs Corresponding Material ESG Topics Goal 11 Make cities and human settlements inclusive, safe, resilient and sustainable • Green Buildings Goal 12 Ensure sustainable consumption and production patterns • Green Buildings • Climate Change • Sustainable Supply Chain Goal 13 Take urgent action to combat climate change and its impacts • 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 • Anti-Corruption and Business Ethics • Compliance with Laws and Regulations • 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 2024
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 2024
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 2024, which is also made available on Yanlord’s website at http://www.yanlordland.com/corporate-governance/. Yanlord’s corporate governance structure is outlined on the right: BOARD OF DIRECTORS Total 7 Directors 4 Independent Non-Executive Directors (including Lead Independent Director) 3 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 AUDIT COMMITTEE RISK MANAGEMENT AND SUSTAINABILITY COMMITTEE NOMINATING COMMITTEE REMUNERATION COMMITTEE Chairman Teo Ser Luck 4 Independent Non-Executive Directors Key Objective Assists the Board in discharging its responsibilities on matters relating to financial, accounting, auditing and internal controls and ensures that Management establishes and maintains an effective control environment within the Group Chairman Chua Taik Him 2 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 determining environmental, social and governance topics identified as material and relevant to the Group’s business and overseeing 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 other key management personnel and training and professional development programmes for directors, and formulates objective performance criteria and process for assessment of 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 Hee Theng Fong 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 that are proportionate to the sustained performance and value creation of the Group, whilst taking into account the strategic objectives of the Group 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 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 2024
ANTI-CORRUPTION AND BUSINESS ETHICS MANAGEMENT APPROACH Yanlord has implemented an ISO 37001-aligned management system to combat bribery, corruption, and fraud, incorporating a comprehensive set of policies and procedures to prevent unethical practices across our business operations. Our management system extends beyond ISO 37001, addressing issues related to fraud, cartels, competition, and money laundering. Elements from the Hong Kong SAR’s Independent Commission Against Corruption Framework are also integrated into our management system. 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. In FY 2024, in light of the recommendations of the RCM and the needs of business management and control, the Group’s Hotel Division has formulated a series of policies covering procurement, marketing, and daily operations, further standardising the operating procedures and work standards of related businesses and enhancing the ability to prevent and manage compliance and integrity risks. At the subsidiary level, guidelines have been formulated to address business needs related to tender management, vendor selection, outsourcing management, and contract management. This ongoing process improves the Group’s control and supervision over the compliance, rationality and integrity of business activities. 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 are required to acknowledge their understanding of the Business Conduct Code, which is made available on the Yanlord’s website. Additional manuals and documents are accessible on Yanlord’s intranet. Anti-corruption and bribery video training was provided to our employees as part of the annual affirmation process for the Business Conduct Code, emphasising a zero-tolerance approach to corruption and bribery. Additionally, we included the anti-corruption and bribery video in the induction process for all new employees. Furthermore, our Partnership Statement clearly outlines our expectations for fair and honest dealings, and stakeholders are encouraged to raise any concerns regarding improper conduct within the Group. Whistleblowing Mechanism Yanlord’s Whistleblowing Policy provides a clear and structured framework that allows individuals — including employees of the Group and external parties — to report any suspected improprieties confidentially, without fear of retaliation, unfair treatment, or adverse consequences. The concerns may include malpractice, irregularities, corruption, bribery, fraud, unethical or unlawful conduct, or any other form of misconduct involving the Group, its employees, or officers. The policy establishes structured procedures for lodging and handling complaints, ensuring confidentiality, and conducting thorough investigations. It covers a broad range of concerns that could significantly impact the Group, such as inaccurate financial reporting, unlawful activities, non-compliance with legal obligations, breaches of internal policies, threats to health and safety, potential harm to the Group’s financial stability or public reputation, violations of professional ethical standards, deliberate concealment of serious misconduct, breaches of internal controls, improper conduct, or intentional withholding of information related to these issues. In FY 2024, there were no whistleblowing complaints received by the Group. 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 2024
Perpetual Target FY 2024 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 | MANAGEMENT APPROACH Outcome of Review • 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. Review and Investigation • 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. Raising Concerns • Reporting of incidents or concerns can be raised via email or mail to the authorised person of our IA in Hong Kong SAR. • 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. Target and Performance 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 2024
COMPLIANCE WITH LAWS AND REGULATIONS MANAGEMENT APPROACH Yanlord remains committed to upholding the highest standards of ethical conduct and corporate governance, ensuring full compliance with all applicable laws and regulatory requirements across the diverse markets in which we operate. We recognise that responsible and ethical business practices are fundamental to building trust, fostering strong stakeholder relationships, and securing long-term success. Our goal is to achieve full regulatory compliance in all business dealings, thereby safeguarding operational continuity and strengthening our risk management framework. Non-compliance can lead to severe consequences, including reputational damage and substantial financial penalties, highlighting the critical importance of adhering to regulatory standards. In key markets such as the PRC (including Hong Kong SAR) and Singapore, we have identified relevant laws and regulations governing building standards, labour practices, workplace health and safety, data privacy, and environmental protection. To ensure ongoing compliance, various business functions within the Group actively monitor legal and regulatory updates, integrating relevant changes into our internal procedures as necessary. Any significant regulatory developments are communicated to the Board and relevant stakeholders, where appropriate. Additionally, our IA Department conducts regular assessments to verify compliance, with findings reported to the AC and Board on a quarterly basis, to the RMSC annually, or immediately when material findings arise. To reinforce our compliance culture, we provide targeted training programs that equip employees with the knowledge necessary to stay informed about regulatory changes and adhere to best practices. This proactive approach ensures that our workforce is well-prepared to integrate compliance measures seamlessly into Yanlord’s daily operations. Target and Performance Perpetual Target FY 2024 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 2024
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 2024
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