1. General statement

In the face of global challenges, such as climate change, resource shortage, and environmentalpollution, Longfor Group has formulated the environmental management policy to further oureffective management in environmental and ecological impacts of business and improve ourcapability to deal with environmental risks as its proactive support to global and regional initiativesincluding the Paris Agreement and the United Nations Sustainable Development Goals (UN SDGs).The environmental policy includes Longfor Group's environmental commitments and objectives,as well as the methods and paths to achieve them. The policy applies to all departments andbusinesses of Longfor Group, all business departments whose operation is subject to LongforGroup, and the upstream and downstream partners of the supplier chain. In this way, the Groupcan assure that we fulfill the environmental responsibilities as a responsible real estate developerin the business, promote the sustainable development of business and operation, and facilitatethe balance between economic production, community development, and environmentalprotection.

The environmental policy includes Longfor Group's environmental commitments and objectives, as well as the methods and paths to achieve them. The policy applies to all departments and businesses of Longfor Group, all business departments whose operation is subject to Longfor Group, and the upstream and downstream partners of the supplier chain. In this way, the Group can assure that we fulfill the environmental responsibilities as a responsible real estate developer in the business, promote the sustainable development of business and operation, and facilitate the balance between economic production, community development, and environmental protection.

2. Direction

The environmental policies of Longfor Group include climate change, green construction andoperation, sustainable procurement, biodiversity, and ecological protection in the community.They involve key environmental issues and major potential environmental impacts on the short-term, mid-term and long-term business development and operation. We have made commitmentsin each aspect of environmental policy and offered specific management and practical measuresto monitor and meet the commitments.

2.1 Climate change (risk identification and management, management of green building and green operation target, green leasing)

We will actively address the potential impacts of climate change, avoid the resulting disruption tooperating entities and the communities where the operation is located, pay attention to and meetthe changing regulatory requirements for addressing climate change, and manage our ownresource consumption and emissions, with a particular focus on mitigating the effects ofgreenhouse gases.

We are committed to:

·promoting top-down climate risk management

·assessing the financial impact of climate change

·setting short-term, mid-term and long-term greenhouse gas emission targets

·universalizing clean energy use

·promoting green building certification rating

·driving the development of environmentally-friendly intelligent building design and technology

We will:

·embed climate risks in the decision-making of the top management bodies, regularly identify climate risks and potential impacts, and update climate change management strategy.

·formulate the short-term, mid-term, and long-term carbon emission targets on the basis of standards of industry's best practices and leading international standards.

·incorporate carbon emission reduction regulations of the global world and the best practice of the industry; regularly disclose carbon emission information.

2.2 Green construction and operation

We fully obey the environmental requirements of national and local laws and regulations on construction and operation and identify advanced international environmental management standards and industry practices. Furthermore, we set and determine the leading environmental management objectives, formulate the next steps and execute on agreed working plans and comprehensively improve the environmentally managerial efficiencies through new opportunities such as systematic management, technological approaches, and green leasing.

We are committed to:

·managing environmental objectives

·carrying out green construction

·enabling green operation and office

·promoting green leasing

We will:

·supervise and manage the environment with the principles of openness, transparency, and timeliness; monitor the environmental risks within the scope of business; respond quickly to report and disclose the environmental impact and treatment progress after environmental accidents, and maintain cooperation and communication with stakeholders.

·manage environmental objectives for construction and operation sites; formulate short-term, mid-term and long-term objectives for energy, water resources consumption and emissions (greenhouse gases and wastes); establish a systematic internal environmental management system, and track how the objectives progress.

·establish an environmental and energy management system in accordance with ISO 14001 and ISO 50001 standards.

·expand the use of clean energy, continue to invest in energy-saving technology innovation and energy efficiency assessment; develop and improve operations and technologies to minimize waste, prevent air, water, and other pollution when disposing of waste safely and responsibly.

·enhance the planning and design requirements of water protection and strictly manage the whole process from design to practice, including but not limited to the comprehensive design of water protection, requirements on indoor and outdoor water efficiency, etc.

·carry out green construction to reduce the impact on local communities; strengthen cooperation with local governments, contractors, and third parties and follow the latest environmental standards for construction throughout the country; improve the construction environment in time to enable site construction more environmentally compliant.

·further boost he assembly technology and put it into use on a large scale when developing real estate by 2025.

·promote green operation in all types of business. All buildings will gradually adopt advancedintelligent environmental management systems and energy-efficient equipment; improveenergy efficiency with intelligent sensing and energy consumption monitoring and analysistechnology; encourage paperless office in office space and properly handle the waste.

·study and develop green leasing standards; communicate and negotiate with the government,occupants, and other stakeholders on the new mode of green leasing; provide incentives onthe green operation to occupants and property managers, and reach commercial agreements,and orderly promote the pilot and promotion of green leasing.

2.3 Sustainable procurement

We do business with suppliers that are up to the standard of quality and sustainable development.Moreover, we have a full understanding and control over the Group’s environmentalresponsibilities during procurement activities, including the impact of upstream procurement onthe environment and ecology, and the contribution of its own and downstream products andservices to creating a safe, healthy and environmentally friendly living and business environment.Thus, we can improve the overall sustainability and environmental standards of the supply chain.

We are committed to:

·procuring sustainably throughout the whole supply chain

·ensuring that the supply chain that is up to the Group’s quality and environmental standards

·requiring all suppliers to abide by and sign the Supplier Code of Conduct

·assisting suppliers to improve environmental performance

We will:

·improve design, operation, and process to enhance the material circulation used in business and operation, reduce unnecessary material procurement, and lower environmental footprint.

·formulate the overall sustainable procurement principles of the Group according to ISO 20400, Sustainable Procurement–Guidance, and consider the following factors during procurement.

·The principle of supplier approval and all applicable environmental standards of the Group shall be met; suppliers shall be preferred with definite values and commitment to sustainable development, related certificate or award, and sustainable development management system or quality management system, as well as consideration of environmental factors.

·control Group's ESG risks arising from the supply chain, assign the responsibility for the prevention and control of supply chain risks to the departments or managers; identify the quality, health, and environmental risks of raw material resulting from the Group’s key suppliers through self-inspection and third-party inspection; work on the ESG risk level and

criteria of suppliers; classify and manage the ESG risk of the supply chain.

·establish the Supplier Code of Conduct and require all suppliers to sign it, including standards on the environmental process, standards on environmental product certification, climate change, and environmental impact, sustainable development information disclosure, etc.; assess their compliance with these requirements when making procurement decisions.

·disclose the health and environmental information of construction products for the new expansion and renovation projects; advocate the low-VOC and low-lead construction materials; give preference to the purchase of wood certified by the forest management committee or the same level.

2.4 Biodiversity and ecological protection in the community

When developing business, based on the land function we fully consider restrictions from the national and local laws and regulations, and policy requirements when evaluating how much our business is fit for environmental conditions and natural resources of the community. We develop and construct the projects with the principle of minimum, controllable ecological degradation as we proactively restore and reconstruct the ecological environment.

We are committed to:

·selecting and developing sites in a legal and compliant manner

·protecting biodiversity

·participating in ecological restoration and reconstruction

We will:

·Conduct project construction and development in accordance with the national and local laws, regulations, and policies and fully aware of the background of land involved; define the boundary of special plots such as historical and cultural sites, nature reserve, land for ecological use, and cultivated land involved and laws and regulations concerned.

·have a general picture of the environmental conditions and natural resources on the project site, and assess the environmental constraints and risks pertaining to or facing the development and construction, including geologic hazards, extreme weather, and other environmental conditions in the early stage of development and construction.

·cooperate with the local government in field survey and detection when developing and constructing all projects in the early stage, assess environmental impacts, and ensure 100% of projects are compliant.

·adopt the construction method causing less impact on the surrounding environment during the construction; reduce the change and damage to the original environment of the site; reduce the secondary pollution of soil, water and atmosphere while restoring the ecological system.

·assess the impact of construction, development, and operation on ecological species; carry out projects with controllable impact only; take measures as it may be to restore the original living environment of animals and plants and meet the ecological needs of local communities for animals and plants.

3. Miscellaneous

3.1 When to formulate, sign and update

·The Group will review the environmental policy as appropriate or at least every

three years