Research on ESG sustainable development reports of China’s benchmark listed real estate companies
By HU Qiancong
Abstract: 2022 was a quite extraordinary year, and it also had a scarring effect on 2023. Climate change has had intensified natural and social risks; the external environment was complex and severe; and China was one year closer to achieving the “double carbon” goal. China’s real estate market continued to endure pressures and go through accelerating changes. All the above factors have highlighted the importance of steady development and promoting sustainable business. Multiple studies have shown that corporate ESG (environmental, social and governance) performance is positively correlated with operating performance and investment value. As international investors increase their participation in China’s capital market, corporate ESG capabilities and performance are getting more and more attention. This article selects listed companies in the A-share and H-share real estate sectors with a market value exceeding RMB 30 billion (hereinafter referred to as “Benchmark Listed Real Estate Companies”), which have released a 2022 sustainability report. By tracking the international ESG rating index, ESG key data disclosure and important sustainable development measures, the essay analyzes the status, achievement, challenges and opportunities of the sustainable development of China’s real estate industry.
Key words: ESG rating, real estate, ESG disclosure, green transformation
HU Qiancong. Research on ESG sustainable development reports of China’s benchmark listed real estate companies in 2022. BioGreen - Biodiversity Conservation and Green Development. Vol. 1, September 2023. Total Issues 48. ISSN2749-9065
Representative sustainability ratings and indices of benchmark listed real estate companies in 2023
Data source: MSCI Ratings, Morningstar Sustainalytics
Data source: Country Garden Holdings Company Limited’s key issue list from MSCI
MSCI 2023 alignment assessment of United Nations Sustainable Development Goals (SDGs)
Data source: MSCI Ratings
The scope of highly important issues concerning the sustainable development of benchmark listed real estate companies in 2022
Statistical method: Taking the TOP10 important issues (regarded as highly important issues) in each sample company’s sustainable development report for statistical analysis
Highly important issues for the sustainable development of benchmark listed real estate companies in 2022
Statistical method: Taking the TOP10 important issues (regarded as highly important issues) in each sample company’s sustainable development report for statistical analysis
Data source: Prefabricated building data in sample corporate sustainability reports
Carbon emission indicators and related information disclosure of benchmark listed real estate companies in 2022
Data source: MSCI implied temperature rise indicator, and environmental responsibility data in sample corporate sustainability report
Hang Lung Properties Limited
Wharf Holdings Limited
Data source: Comparison of MSCI Pre 2050 forecast of carbon emissions and the goal of controlling global temperature rise below 2 degrees
Production safety-related indicators and other negative disclosures of benchmark listed real estate companies in 2022
Note ①: Lost Time Injury Frequency Rate (LTIFR) per million working hours in Henderson Land Development Co Ltd: 6.89 for male direct employees, 10.03 for female direct employees, 3.16 for male subcontractors
Data source: Social responsibility data of sample corporate sustainability reports
Key indicators of talent retention for benchmark listed real estate companies in 2022
Note ①: Average training hours per employee (CHINA OVERSEAS PROPERTY GROUP CO., LTD: 12.98 for males, 11.46 for females; Henderson Land Development Co Ltd: 17 for males, 16 for females)
Note ②: Employee turnover rate (China Resources Land Limited is the average value of development, commerce, and property systems; Longfor Group Holdings Limited. is the average value of real estate/non-real estate channels; China Merchants Shekou Industrial Zone Holding Co., Ltd: 39.31% for males and 41.12% for females)
Data source: Social responsibility data of sample corporate sustainability reports
Indicators related to equal opportunities for women in benchmark listed real estate companies in 2022
Note ①: The proportion of women in Country Garden Holdings Company Limited’s management: 22% in middle management and 18.57% in senior management
Data source: Social responsibility data of sample corporate sustainability reports
Diversity indicators for the board of directors of benchmark listed real estate companies in 2022
Data source: Sample corporate sustainability reports, and corporate governance data in annual reports