On 27 April 2023, Longfor Group Holdings Limited published its 2022 Sustainability Report (the "Report"), the third independent sustainability report released by Longfor Group .
The Report outlinesLongfor Group’s objectives and practices in environmental, social, and governance aspects. It covers six dimensions: Good Governance, Good Service, Good Public Welfare, Good Cooperation, Good Nature and Good Care.
Following the value of "For You Forever”, Longfor Group continues to devote itself to public welfare undertakings. Relying on its distinct advantages,the Group has rolled outvariouscharitable activities featuring Longfor characteristics. Their scope covers rural revitalization, elderly and youth support, and education enrichment, thusshowcasing its corporate responsibility and commitment with practical actions. Longfor Group, its founder and Longfor Foundation have donated more than RMB1.8 billion in total.
Achieving top ranking with various accolades
In 2022, the landscape of the real estate market underwent rapid and profound changes, which posed numerous difficulties. Longfor Group followed the policy and seized this momentum to ride through the cycle smoothly. Last year, Longfor Group achieved revenue of RMB 250.57 billion, a year-on-year growth of 12.2%, core attributable profit of RMB 22.54 billion. The Group has maintained a strongfinancial position, a safe debt structure, and synergistic business development in all channels,allowing it to preserve its full“investment-grade” credit ratings.
While developing its business, Longfor Group attaches great importance to the development of the ESG management system. Since having established a board-level ESG Committee in 2020, the Group has made substantial strides in improving governance.Due to its success in ESG, Longfor Group earned a series of recognition in 2022, including“BBB” by MSCI ESG rating, “Three Green Star” certificationfrom the Global Real Estate Sustainability Benchmark (GRESB), as well as “Low Risk” rating by Sustainalytics, with a risk score of 15.2—the lowest among Chinese real estate developers. It was also named inthe 2022 Forbes China ESG50.
Facilitating the goal of carbon peaking and carbon neutrality foreco-friendliness
In the wake of “carbon peaking” and “carbon neutrality” commitment underpinning the advancement of ecological civilization, enterprises are duty-bound to become more energy-efficient and reduce carbon output. In 2021, Longfor Group established a team dedicated to driving carbon peaking and carbon neutrality programs, supervised by the ESG Committee, to embed those capabilities in the toplevel of the organization. At the same time, the Group set the goal of reducing carbon emissions intensity (per unit area) by 15%* by 2030 to help achieve the national goal of carbon peaking and carbon neutrality.
Longfor Group combines sustainable development with the full life cycle of buildings, setting a model of green, healthy living. By the end of 2022, the cumulative area that meet the national green building standard exceeded 130 million square meters. In 2022, 100% of new projects meet national green building standards, with the proportion of new projects that meet national green building
standards of one star or above reached 80%. In 2022, 33.1% of new projects used solar energy and 17.0% utilized air energy. In addition, Longfor signed over 15,000 green lease contracts with its tenants, accounting for 96% of new tenants, promoting green development on a wider scale.
It is worth mentioning that leveragingBuilding Information Modeling (BIM), the Longfor Intelligent Construction creates green building technologies about energy consumption and provides digital technology empowerment with whole business formats and the whole cycle to help its partners to achieve green and low-carbon development.
Focusing on green development and coexistence with the environment, Longfor has formulated and issued the Climate Change Response Policy to deal with the impact of climate change. With reference to the framework proposed by the Task Force on Climate-related Financial Disclosures (TCFD), Longfor formulated management approaches and countermeasures about climate-related risks, complimented by a Biodiversity Framework to guide biodiversity conservation and promote the harmonious coexistence of humans with nature.
Committing to safe, healthy growth and powering production with smart technology
Longfor continuously prioritizes safety production in its development process, actively mitigating and eradicating potential safety hazard. In 2022, the Group formulated the Health and Safety Management Policy, covering all business lines, and required all suppliers and contractors to comply with this policy, aiming to create a safe, civilized, and harmonious work environment for employees and other companions.
Meanwhile, Longfor adopted smart technologiesfor production, by using smart construction site tools such as smart helmet, hook visualization, and blind spot visualization reinforce safety line of defense for construction.
While ensuring safe production, Longfor continued to improve the Group’s quality management system and improved product quality requirements by revising the Third Party Engineering Quality Management System of Real Estate Headquarter. Special attention was devoted to enhancing the standardization of the quality system and promoting the ISO 9001:2015 quality management system certification. Furthermore, Longfor developed 74 process methods and established reliable construction standards for the civil engineering, electromechanical, and decoration dimensions. Meanwhile, the Group further instituted a three-level quality management and control system of “group-region-project”, ensuring the quality of engineering at all levels. In 2022, the “Sunshine Workshop” was promoted, providing customers with a unique insight into the entire construction process from civil engineering process to delivery, thereby facilitating joint supervision over product quality.
Longfor was committed to providing users with reliable and safe products and services of superior quality, made possible by its increasingly sound quality management and control system, from design to delivery. Through the model of “preferred brand, centralized procurement, and exclusive supply”, Longfor insists on the stringent selection of materials from the source. The Prime Home Considerate Decoration system enables users to experience a “fusion, arrangement, health, convenience and quality” in the living space. The considerate delivery system - “providingan abode with devotion” - ensures full life-cycle services from stress-free delivery.
Last year, Longfor Group delivered an impressive 110,000+ houses, all on time, - 40% of themeven one month earlier than planned, leading to customer satisfaction of 90%.
Sowing the seeds of public welfare for kindness
Driven by the mission of “For You Forever”, Longfor is devoted to creating a mutually beneficial and harmonious ecosystem for employees, customers, the industry, the environment and society.
In 2022, Longfor went a step further with their Da Tong Yuan Employee Care Program’s “Great Reunion” section, broadening its coverage to include not just employees, spouses and children but their parents as well. It includes not only a basic commercial medical insurance scheme but an optional “one million coverage hospitalization insurance plan” too. Ultimately, the plan provides medical and health protection for employees’ families, benefiting over 100,000 people.
Growing up in the cultural soil of “Being Kind”, Longfor has also exported this positive value to society. Last year, Longfor Group paid RMB 21.1 billion in taxes. While fulfilling its corporate citizenship responsibilities as a taxpayer, Longfor also lit up more lives through its charitable practices. Since its establishment, Longfor Foundation successively carried out charitable campaigns, such as the "The Xinya Project", "The Huguang Project", "The Flying Project", "The Stream Project", and "The Evergreen Project"– in the fields of care for the elderly and children, rural revitalization and "education promoting – which helped more than 1.64 million people in total.
In 2022, Longfor achieved a flawless score in the China Foundation Transparency Index (FTI), and was awarded the "Star of Glory" annual collective, "China Charity List" Annual Model FoundationAnnual Model Organization, Chongqing Charity Award and numerous other accolades.
This year marks the 30th anniversary of Longfor Group's establishment. All these years, Longfor has been steadfastly faithful to the original intention of "treating people with kindness", and taking long-termism action and cultivating virtue, and pushing forward resolutely and enthusiastically.
Going forward, Longfor will continue to stay true to its key value of “Being Kind” and live up to its social responsibility. While promoting its sustainable development, Longfor will create a better space for the city and humans, renew the city with more considerate services, and promote the harmonious development of our society.
For more ESG information ofLongfor Group, please visit https://www.longfor.com/en/mobile/social/41/
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