Case study: How Hang Lung Properties creates economic value for its stakeholders
Headquartered in Hong Kong, Hang Lung Properties develops and manages a diversified portfolio of world-class properties in Hong Kong and mainland China, and is recognised for its growing leadership role in enhanced sustainability initiatives in real estate as it pursues sustainable growth by connecting customers and communities. Hang Lung Properties aspires to become one of the world’s most sustainable real estate companies and is, accordingly, committed to creating sustainable value for all its stakeholders.
This case study is based on the 2021 Sustainability Report by Hang Lung Properties, prepared in accordance with the GRI Standards, that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.
Abstract
Promoting the long-term development and wellbeing of its communities and ensuring value creation for all its stakeholders are, both, key priorities for Hang Lung Properties. Tweet This! In order to create economic value for its stakeholders Hang Lung Properties took action to:
- create economic value for employees
- create economic value for shareholders
- create economic value for the government
- create economic value for communities
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With this case study you will see:
- Which are the most important impacts (material issues) Hang Lung Properties has identified;
- How Hang Lung Properties proceeded with stakeholder engagement, and
- What actions were taken by Hang Lung Properties to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2021 Sustainability Report Hang Lung Properties identified a range of material issues, such as energy efficiency and carbon emissions reduction, ethics and integrity, employee wellbeing, adaptability to climate change impacts. Among these, creating economic value for its stakeholders stands out as a key material issue for Hang Lung Properties.
Stakeholder engagement in accordance with the GRI Standards
The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:
Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.
Key stakeholder groups Hang Lung Properties engages with:
| Stakeholder Group | Method of engagement |
| Employees
| · Biannual two-way performance check-in and review · Regular drinks sessions with management · Annual dinner · Bi-monthly corporate newsletter · Annual sustainability-focused interviews and focus groups · Annual employee engagement survey · Emerald Award, CEO Award, Long Service Award · Annual conference (management conference, function conference) · Ongoing digital platform communication through intranet, WeChat · Regular staff activities · Exit interviews |
| Investors and Shareholders | · Annual sustainability reporting, benchmarks and indices · Regular investor interviews, meetings, roadshows, and investor conferences · Annual General Meeting |
| Tenants and Customers
| · Regular customer engagement surveys · Annual tenant satisfaction surveys and interviews · Ongoing social media communication through various media · Bi-monthly corporate newsletter |
| Suppliers and Contractors | · Regular project meetings · Screening and performance evaluation · Focus group discussions |
| Communities
| · Regular two-way communication with international and local communities at the Board level · Ongoing community programmes · Monthly community events · Bi-monthly corporate newsletter |
| NGO partners, Academia and Industry Associations | · Regular collaboration on sustainability community investment initiatives · Regular participation in conferences, seminars, and networking events |
| Governments and Regulators | · Regular meetings · Occasional site visits by government officials · Government consultations |
| Media
| · Biannual results announcements and press conferences · Occasional media briefings and luncheons |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics Hang Lung Properties engaged with its stakeholders through surveys.
What actions were taken by Hang Lung Properties to create economic value for its stakeholders?
In its 2021 Sustainability Report Hang Lung Properties reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, Hang Lung Properties paid HK$ 1,793 million for employee wages and benefits.
- Creating economic value for shareholders
- In 2021, Hang Lung Properties paid HK$ 3,463 million in dividends and HK$ 465 million in dividends paid to non-controlling interests.
- Creating economic value for the government
- In 2021, Hang Lung Properties paid HK$ 1,346 million in income taxes to the government.
- Creating economic value for communities
- In 2021, Hang Lung Properties paid HK$ 17 million in community investments.
Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?
The GRI Standard addressed in this case is: Disclosure 201-1 Direct economic value generated and distributed
Disclosure 201-1 Direct economic value generated and distributed corresponds to:
- Sustainable Development Goal (SDG) 8: Decent Work and Economic Growth
- Targets: 8.1, 8.2
- Sustainable Development Goal (SDG) 9: Industry, Innovation and Infrastructure
- Targets: 9.1, 9.4, 9.5
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References:
This case study is based on published information by Hang Lung Properties, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:
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