ESG governance in the global real estate sector has evolved from carbon reduction at the operational stage to in-depth management across the full development value chain and embodied carbon within supply chains. The assessment logic and quantitative metrics of international evaluation frameworks keep evolving, imposing higher requirements on property developers in terms of forward-looking strategy, cross-industry chain governance, carbon data management and disclosure quality. In 2026, GRESB fully revamped its assessment methodology and introduced mandatory metrics for the accounting and disclosure of embodied carbon in buildings, significantly raising the bar for participants in the Development Benchmark. Against this backdrop, Yuexiu Property (00123.HK) leverages its sustainability governance system embedded in corporate top-level strategy to establish a full-cycle management loop covering site evaluation, master planning, construction and product handover. The company has been named GRESB Sector Leader for the Development Benchmark for the first time and retained its highest 5‑star rating, marking that its development business has joined the global first tier of residential developers in comprehensive ESG performance.
Evolving Assessment Framework: Achieving Breakthroughs Amid Rigorous Challenges
The GRESB Development Benchmark underwent systemic reforms this year, putting participating entities under broad pressure. The average score of participating developers fell to 86.2 in 2026 (2025: 88), while the threshold for the 5-Star rating rose to 98.2 (2025: 97.7). The Sector Leader accolade requires a score of 99 or above and is only awarded to top-tier players in respective sub-sectors. This honour cannot be achieved by isolated strengths alone; instead, it demands outstanding and balanced performance across governance structure, carbon abatement outcomes, project delivery and information disclosure.
The Company attained an A-rating in GRESB Public Disclosure, surpassing the global average B-rating and ranking first among residential peers in East Asia. The completeness, data quality and transparency of its ESG disclosure have been fully recognised by an authoritative international body, providing solid support for global institutional investors to assess the Company’s long-term sustainable value.
Deepening Full-value-chain Low-carbon Practices: ESG Empowers Full-cycle Development
A high GRESB Development Benchmark score is not merely a result of documentary reporting. Fundamentally, it hinges on an enterprise’s capacity to embed sustainability into core business operations and deliver replicable, scalable practices. Aligned with China’s “Dual Carbon” strategy, Yuexiu Property moves beyond standalone green projects. It has built a full-lifecycle low-carbon management loop spanning site evaluation, planning & design, green construction, supply chain governance, product handover and carbon data management, enabling deep integration between ESG governance and core development business.
At the front-end design phase, the Company implements TCFD-aligned climate risk assessment, incorporating ultra-low-energy and near-zero-carbon building technologies as well as biodiversity evaluation into pre-project due diligence. It has delivered benchmark projects including iPARK Guangdong-Hong Kong Cloud Valley, a South China landmark certified for both zero carbon and zero energy consumption, embedding low-carbon targets at the origin of design solutions. During construction, green construction practices are widely rolled out with expanded adoption of low-carbon building materials and prefabrication technologies. The Company has established ESG admission rules for suppliers and integrated carbon performance into supply chain evaluation criteria. It also pioneers innovative building carbon credit mechanisms and delivered China’s first building carbon credit for a wholesale market project, forming a complete chain of “emission reduction → accounting → value monetisation” and offering a replicable reference for the industry to unlock low-carbon value. Beyond decarbonisation, guided by human-centric living value, the Company has rolled out the “10+N Healthy Living Technology System”, delivering dual progress in building carbon reduction and residential quality uplift, and translating sustainable value into tangible product experience for customers.
Anchoring Long-term Value: Continuously Leading Low-carbon Transition in Residential Development
As a state-owned listed property developer, Yuexiu Property will continue benchmarking global real estate sustainability leaders and strike a balance between scale expansion and green transition. On carbon management, the Company will further refine accounting for full-category Scope 3 emissions, strengthen end-to-end control of embodied carbon in buildings, and drive scaled adoption of EPD (Environmental Product Declaration) and low-carbon building materials. For industrial chains, it will keep enhancing the low-carbon supply chain ecosystem and foster collaborative decarbonisation with upstream and downstream partners. On the product front, it will continuously upgrade R&D of green buildings, ultra-low-energy buildings and healthy living products, and expand application scenarios for smart energy-saving technologies. In terms of governance and disclosure, the Company will maintain alignment with leading international ESG frameworks including GRESB, TCFD and GRI, and consistently improve ESG data quality and public transparency.
Yuexiu Property will continue to consolidate its green development resilience through robust, quantifiable and scalable business practices. While generating long-term operational value for the Company, it will share practical experience on low-carbon transformation across the full real estate development value chain, supporting the high-quality and sustainable development of the industry.
