As the nation’s “Dual Carbon” strategy and the advancement of ecological civilization continue to deepen, embedding sustainable governance throughout the entire business lifecycle has become a critical priority for enterprises seeking to solidify long-term value and achieve high-quality development. Leveraging its systematic ESG framework and implementation across the entire business chain, Yuexiu Property (00123.HK) has once again received authoritative recognition: its HKQAA Sustainability Rating has risen from A+ to AA+, and it has been selected as a constituent of the Hang Seng Corporate Sustainability Benchmark Index (HSSUSB) for three consecutive years.
Historic Three‑Notch Upgrade, Entering the Top Rating Tier
The HKQAA Sustainability Rating System is divided into five categories, ranked from highest to lowest as follows: Sustainable, Responsive, Normal, Minimal, and Vulnerable. The rating scale ranges from AAA to D, and “+/-” symbols are used to distinguish the relative performance of companies within the same category.
The AA+ rating awarded to Yuexiu Property in this assessment falls under the “Sustainable” tier, which indicates that the company has established a systematic risk management mechanism and achieved consistent and stable results in sustainable development, representing a high‑order rating second only to AAA in the HKQAA rating system. The company’s three-tier upgrade from A+ to AA+ is not only the comprehensive result of its sustained efforts across multiple dimensions of environmental, social, and governance (ESG) initiatives but also stems from a comprehensive, top-down sustainability management system: A Sustainability Committee operates under the Board of Directors, with management coordinating and advancing related work. This structure places climate risk assessment, review of “dual carbon” targets, and major sustainability issues under the Board’s top-level oversight, ensuring that responsibilities are delegated at each level and providing robust institutional and organizational safeguards for all sustainability initiatives.
Focusing on the “Dual Carbon” Goals, Deepening Low-Carbon Development Across the Entire Value Chain
Yuexiu Property actively supports the national “Dual Carbon” strategy by establishing a comprehensive carbon management system centered on the full life cycle of buildings, and by continuously advancing the accounting and disclosure of greenhouse gas emissions across Scopes 1, 2, and 3. The company has begun collecting and accounting for Scope 3 carbon emissions data since 2025 and plans to finalize its carbon emission targets for Scopes 1, 2, and 3 by 2028, thereby fully supporting the company’s green, low-carbon, and high-quality development.
Yuexiu Property continues to explore innovative practices in carbon asset within the construction sector, successfully implementing the nation’s first carbon credit project for a wholesale market building and establishing a complete business cycle encompassing “low-carbon retrofitting—certification—monetization through carbon trading.” At the same time, the company continues to expand its green finance portfolio, issuing multiple green bonds and sustainability-linked loans; as of June 30, 2026, sustainable finance accounted for 42% of its total financing. Committed to the implementation of green products, 100% of new construction projects meet green building standards. The company drives the green transformation of its development business through technological innovation, steadily fulfilling its commitment to low-carbon development.
Upholding Ecological Legal Bottom Lines, Advancing Climate and Nature Governance
On August 15, 2026, the Ecological and Environmental Code of the People’s Republic of China officially took effect, providing a clear legal framework for enterprises to engage in ecological conservation and promote green development. As a state-owned real estate developer, Yuexiu Property closely follows the national legal framework for ecological and environmental protection. The company integrates biodiversity conservation into the entire project development process, actively implements practices aligned with the Task Force on Nature-related Financial Disclosures (TNFD) framework, and applies the LEAP methodology to identify and assess its business’s dependencies on and impacts on natural ecosystems, thereby incorporating ecological protection requirements into the project planning and construction phases from the outset.
Throughout the project’s development, the company has strictly implemented measures related to the protection of ancient trees and ecological restoration. Using the Moon Lake Ecological Restoration Project as a model, it has established a self-purifying ecological loop for the water body and transformed the ecological spaces both within and outside the project boundary into shared urban public spaces. By balancing residential development with biodiversity conservation, the company has demonstrated its social responsibility as an urban developer through concrete actions.
At the same time, the company is benchmarking against the IFRS S2 Sustainability Disclosure Standard — Climate‑related Disclosures, continuously strengthening its climate-related risk management capabilities, steadily advancing efforts to quantify the financial impacts of climate change, integrating nature-related and climate risks into the company’s overall risk management system, and continuously improving its ability to assess and respond to ecological and climate issues.
Looking ahead, Yuexiu Property will continue to align with the national “Dual Carbon” strategic goals, further refine its top-level governance mechanisms for sustainable development, deepen technological innovation in green and low-carbon construction across the entire building lifecycle, expand innovative practices in green finance and carbon assets, iteratively upgrade its healthy living product system, and implement social responsibility initiatives, including ecological conservation, public services, and rural revitalization, in a thorough and substantive manner. By building sustainable capabilities to empower the company’s long-term and steady development, Yuexiu Property will actively fulfill its responsibilities as a state-owned enterprise, serve as a model for the industry, and strive to achieve the synergistic advancement of business value, social value, and ecological value, thereby contributing to the high-quality and sustainable development of cities and human settlements.