22 Nov 2022
Following the launch of its decade-long “5C” sustainability strategy in 2020, Shui On announced its strategic partnership with Green Monday Group in April 2021, its joint commitment with Honeywell to a sustainable future for smart buildings in November 2021, and its participation in the Business With Purpose 2022 platform in May this year. On November 7, 2022, it signed a Green Agreement with 100 supply partners. A defining moment came on November 10, 2022 when Shui On Workx entered into the industry's first Deep Green office lease agreement with the U.S. Green Building Council (USGBC), kickstarting a sustainable innovation program. These major efforts aim to push forward green practices, create a green ecosystem, and implement "full lifecycle" sustainable solutions for urban development.
Green Supply Chain and Solution for Full Lifecycle Sustainable Community Development
Shui On Land has always been a practitioner of green and low-carbon sustainable development; it pursues the harmonious development of urban economy, resources and environment that spans the full lifecycle of sustainable community development, from planning, design, construction through to operation. In the process of delivering urban economic growth, the development and utilization of natural and cultural resources are rationalized to promote societal prosperity and sustainable development.
On November 7, 2022, Shui On Land signed Green Agreements with 100 supply partners, calling on all stakeholders of sustainable project developments to respond to and support the company’s 5C sustainable development strategy. The document urges all parties to seek low-carbon sustainable solutions together with Shui On Land on the principles of compliance, balance and openness, and to support sustainable practices through technological innovation. By tapping into the concepts of low carbon and circular economy and supply chain management technology, each stakeholder shall consider the environmental impact and resource efficiency in the upstream and downstream of the supply chain, explore industry-wide best practices, enable a more efficient supply chain, thus jointly contributing to the realization of the targets of peak carbon dioxide emissions and carbon neutrality set by China.
From Green Agreement to Deep Green Lease
In line with China’s commitments to peak carbon dioxide emissions and carbon neutrality, carbon emission from buildings are garnering increasing attention. Given the current green building certification system, more and more new buildings are designed to comply with green and low carbon targets. However, design and construction are not the whole story, as any green and low carbon efforts are incomplete without carbon emission reduction in the operation stage.
Shui On Land has always been an innovative champion of sustainable and low carbon operation and carbon reduction. Shanghai Xintiandi has signed Green Agreements with all of its F&B tenants, while Wuhan Tiandi has entered into the Green Agreements with over half of its F&B partners. Shui On Workx launched the industry's first Green Agreement on office leasing; as the initiator of the low carbon office alliance, it has collected 100 sustainability cases. More recently, it has entered into the Deep Green leasing cooperation with USGBC, founder of the LEED green building and urban rating system. The trail-blazing move in the industry represents its continuous efforts in energy saving and consumption reduction. It will also branch out into water saving and waste recycling treatment in the future.
Different from previous voluntary green initiatives, the Deep Green lease is a contractually binding sustainable lease that sees the tenants, the owner and the society as stakeholders and introduces incentives for tenants' energy consumption to regular terms of office lease. The Green Lease stipulates that both parties identify targets of environment protection, such as sustainability requirements on secondary renovation and construction, operation, and the disclosure of relevant carbon emission data. It is estimated that if all of Shui On Workx's office projects across the country implement Deep Green leasing, every 10% reduction in air conditioning energy consumption in the leased area can produce the effect of planting some 300,000 trees or eliminating the use of some 1,500,000 pairs of disposable chopsticks; the value is simply extraordinary.
Sustainability is a business imperative of Shui On Land. The company has integrated the notion into all aspects of its business strategies, decisions and operations, striving to be a pioneer of sustainable communities in cities of excellence. As the first Chinese real estate developer to join the Science Based Carbon Targets Initiative ("SBTi"), it has announced a stringent plan on cutting emissions to curb the global temperature increase within the range of 1.5°C.
In the future, the company will further implement its "2030 Sustainable Development Strategy" dubbed as 5C, i.e., environment, community, culture, care and corporate governance; while working on community master plans, it will take into consideration the environment and cultural heritage preservation along with green and healthy community creation. Its brainstorms with partners are slated to unleash creativity and to create a more livable, sustainable urban environment through relentless innovation.