Sinochem HK received a low-risk ESG Risk Rating from world-renowned rating agency, Morningstar Sustainalytics
On March 8, 2023, Sinochem Hong Kong (Group) Co., Ltd. ("Sinochem HK") received its first ESG (Environmental, Social and Governance) Risk Rating from Morningstar Sustainalytics, a leading ESG research, rating and data firm, with a score of 12.9 and placed in the low risk category. Sinochem HK is classified into the real estate development industry by Morningstar Sustainalytics. As of March 31, among the nearly 300 rated real estate developers in the Sustainalytics' global rating universe, Sinochem HK ranked 5th globally.
As one of the world's leading independent ESG research, ratings and data companies, Morningstar Sustainalytics supports global investors and companies in formulating and implementing responsible investment strategies. The ESG risk level is divided into 5 categories, namely negligible risk (score 0-10), low risk (score 10-20), medium risk (score 20-30), high risk (score 30-40) and severe risk (score 40 or above). The lower score implies lower ESG risk.
Sinochem HK thoroughly implements Sinochem Holdings'sustainable development strategy, attaches great importance to the ESG construction, implements the HSE responsibility system, comprehensively sets up policies and systems, extensively collects information and data, strengthens the disclosure of Sinochem HK's website in Chinese and English, improves information transparency, and has actively communicated with Morningstar Sustainalytics throughout the rating process. Sinochem HK has excellent performance in Emissions, Effluents and Waste, Corporate Governance, Community Relations, Occupational Health and Safety, Bribery and Corruption, and Product Governance, all of which have been classified to the "negligible risk level" in the risk assessment. Sinochem HK has a complete and sound policy system covering sustainable development, health and safety, supplier conduct, environmental protection, sustainable procurement, anti-bribery and corruption, business ethics and community management, providing directions for the company's sustainable operations. At the same time, China Jinmao, Sinochem HK's directly owned and controlled subsidiary, is a leading city operator in China. Its diversified environmental management measures such as actively promoting green leasing among tenant groups, making 100% of new residential buildings in line with green building standards, etc. have been highly recognized.
The excellent first-time ESG rating results fully reflects Sustainalytics'recognition on Sinochem HK's ESG performance. In the context of the rising awareness of corporate ESG risk by global investors, this rating exercise also lays a solid foundation for Sinochem HK's future financing activities in the international capital markets. BOC International, acting as the sole ESG rating advisor, has provided professional and comprehensive services throughout the whole process to assist Sinochem HK in completing this groundbreaking milestone project.
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