CLIMATE CHANGE Details of the key climate-related risks and opportunities identified across Property Development and Managed Properties as well as potential financial implications and corresponding mitigation measures are presented in the following section. Physical Risks Transition Risks Risks Financial Implications Mitigation Measures Mitigation Measures Increased extreme weather conditions • E.g. heavy rainfall in summer which lead to urban water logging in cities Increase in costs associated with enhancing infrastructure resilience, such as strengthening the capacity of drainage facilities during the planning and design stages, which may lead to higher overall project costs. Risks factors are considered in advance during planning and design phases, taking into account the budget and project management capacity. Yanlord responded to the Guidance from the General Office of the State Council on Promoting the Construction of Sponge City by holistically considering aspects of rainwater absorption, storage, seepage, and water purification in projects, as well as recovering rainwater for use in landscaping and irrigation, as part of our adaptation to climate change. Risks Financial Implications Mitigation Measures Mitigation Measures National ‘Emission Peak’ and ‘Carbon Neutrality’ commitments in the PRC and carbon pricing mechanisms in Singapore • Emerging low-carbon technologies • Increased stakeholder expectations • Shifts in consumer preferences • Policy compliance cost • Carbon tax passed on to end consumers in the form of higher electricity prices • Devaluation of assets • Reputational and legal impact Yanlord considers the impact of climate change throughout the entire project life cycle (including design, procurement, construction, operation and maintenance), and provides fully-furnished houses to reduce secondary pollution from tenants’ furnishings. We actively explore and use low-carbon and energyefficient products and materials; for example, Yanlord adopted use of prefabricated buildings in multiple projects and uses modular building techniques such as ‘building houses like building blocks’. Opportunities Market Opportunities Plans to Leverage on Opportunities Plans to Leverage on Opportunities Regulatory developments • Increasing regulatory requirements for green buildings in response to climate change • Greater government incentives for developers on green buildings, to support the PRC’s “Carbon Neutrality” goal by 2060 • Rising customer awareness of the benefits of green and sustainable developments Yanlord is recognised as a leader in construction quality within the industry, making it the preferred choice of the government and customers. Yanlord continues to strengthen its R&D efforts in greenbuilding practices through continuous upgrading of its developments. See page 60 for more information on our green building management initiatives. 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 YANLORD LAND GROUP LIMITED SUSTAINABILITY REPORT 2025 57
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