【True Insight Hong Kong Stock Market Trends】China Merchants Commercial Real Estate Investment Trust incorporates ESG into business operations and receives GRESB 4-star rating for the first time.
China Merchants Commercial REIT (01503.HK)$CMC REIT(01503.HK) participated in the Global Real Estate Sustainability Benchmark (GRESB) assessment for the first time in 2024 and received a 4-star rating from GRESB, marking the REIT's achievements in the field of sustainable development have been recognized by the international ESG system.
GRESB provides authoritative indicators for environmental, social, and corporate governance (ESG) in the global real estate and infrastructure sectors. Its data currently covers 2,084 real estate companies in 75 markets and has become a globally recognized rating standard for real estate and asset management.
The rating is based on the evaluation of more than ten ESG performance indicators, including energy consumption, leadership and decision-making, stakeholder communication, and risk disclosure. China Merchants REIT exceeded the GRESB average score in the three major areas of environment, society, and governance, achieving a perfect score in "governance," demonstrating its outstanding performance in ESG leadership, policies, reporting, and risk management. The company also outperformed the industry average in multiple indicators such as risk assessment, tenants and communities, greenhouse gas emissions, water resources, and waste disposal.
In recent years, the REIT's parent company, China Merchants Shekou, received an A rating from Morgan Stanley Capital International (MSCI), the highest MSCI ESG rating among A-share real estate listed companies. The REIT has also incorporated ESG considerations into its business operations, establishing an ESG working group to implement ESG strategies and achieving multiple industry certifications. Currently, all properties under the REIT have obtained ISO 14001 environmental management system certification to minimize potential environmental risks in daily operations. At the same time, each property implements various environmental protection measures to improve overall energy and water resource utilization and waste disposal methods, pursuing greener operations.
The REIT's properties have also made breakthrough progress in building certifications. New Times Plaza and China Merchants Hang Wah Science and Trade Center were awarded LEED Platinum certification in the past two years. New Times Plaza has also integrated ESG elements into property operations, focusing on energy saving, water conservation, and waste classification to provide tenants with a safe, healthy, and comfortable office environment.
In addition, the REIT has actively fulfilled its corporate social responsibilities in recent years, collaborating with Shenzhen Shekou China Merchants Garden City and Art Hong Kong to organize diverse social public welfare activities, promoting traditional Chinese culture and injecting new vitality into urban life. Looking ahead, China Merchants Commercial REIT will continue to practice sustainable development, actively addressing issues such as climate change, resource utilization, environmental and community governance encountered in its operations. It aims to achieve breakthroughs in the ESG field and strive to provide high-quality, sustainable returns for stakeholders.
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