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                    2. ESG Overview Partnership Environment Compliance Philanthropy ESG Report

                      ESG Overview

                      Sustainability Commitment

                      Shimao has built a century-long corporate culture, injecting sustainable development genes and strong internal drive for quality growth with its corporate social responsibility and philosophy of helping people live a better life. The "Giant Aircraft Strategy" is being promoted in an integrated manner to achieve a comprehensive upgrade of urban empowerment and steady delivery of long-term value.

                      ESG Management Structure

                      Shimao Group (the “Company”) has established a comprehensive sustainable development management structure, forming a three-level working mechanism of "Decision-making Level - Management Level - Implementation Level" to systematically carry out relevant controlling and ensure the effective implementation of policies and initiatives. The Board of Directors, as the highest Decision-making Level for sustainable development management, oversees all aspects of sustainable development work. The ESG Management Committee is formed by the senior management of the Company. As the Management Level, the Committee reports regularly to the decision-making level. ESG Working Groups were established as the Implementation Level to clarify the work responsibilities of each profession in the sustainability strategy and ensure the smooth operation of related mechanisms.

                      In order to establish a long-term top down ESG management mechanism, the Company integrates sustainable development performance into the performance assessment of the company's directors and executives, specifying the performance requirements of directors and executives in the areas of employee health and safety, climate change response and ESG reporting management, and prompting the management to optimise and improve ESG management. In the event of a negative ESG incident, penalties will be set at the appropriate level according to the severity of the incident.

                      Statement by the Board of Directors:The Board of Directors of Shimao Group has delegated to the ESG Management Committee the overall responsibility for overseeing ESG management and conducting ESG communication meetings not less than twice a year. We are responsible for establishing the company's ESG strategy and regularly reviewing its implementation; identifying and assessing ESG risks, discussing and identifying ESG materiality issues; reviewing the ESG management policies and ensuring their continuous implementation and enforcement; reviewing ESG plans and targets setting and regularly reviewing the achievement of ESG targets; reviewing ESG performance and ultimately coordinate, implement and execute relevant procedures through the ESG Management Committee and ESG Working Groups.

                      ESG Policies

                      Shimao Group Sustainable Development Policy General Program
                      Shimao Group Corporate Code of Conduct
                      Shimao Group Code of Conduct for Suppliers
                      Shimao Group Integrity and Whistleblowing Policy
                      Shimao Group Policy?on Climate Change
                      Shimao Group Policy on Environmental Protection?and Biodiversity
                      Shimao Group Policy on Community Management
                      Shimao Group Policy on?Occupational Health and Safety Management
                      Shimao Group Policy on?Human Rights

                      ESG Awards

                      MSCI ESG Rating: BB 2021 Annual ESG Responsibility Corporate 2021 The 11th China Charity Award 2019 Contribution to Social Responsibility Award Constituent of HSCEI ESG INDEX 2021 Best Environmental Case in ESG of Chinese Companies Excellent Charity Leader of 2020 China Charity Ranking 2019 Excellent Company of Poverty Alleviation 2021 China Green Real Estate Companies Index TOP 10 2021 Annual Case of Poverty Alleviation in Chinese Real Estate Companies 2019 Shanghai Charity Star Charity Model of 2018 The 10th China Charity Award
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