CIFI publishes its first standalone ESG report, highlighting five key accomplishments

July 08, 2020 - 05:33
CIFI publishes its first standalone ESG report, highlighting five key accomplishments

CIFI implements corporate responsibilities in five key aspects, including green buildings, construction with quality, compliance and integrity, staff welfare and philanthropy


HONGKONG, CHINA - Media OutReach -8 July 2020 - CIFI Holdings (Group) Co. Ltd.("CIFI" or the "Group", HKEx stock code: 884), a leadingreal estate developer engaged in the property development and investmentbusiness in the first-, second- and robust third-tier cities in China,published a standalone ESG report for the first time and early adoptedcomprehensive disclosure requirements from HKEx's ESG reporting guideline,marking the Group's leapfrog improvement in the level and richness ofdisclosure.

CIFI hasbeen dedicated to playing a leading role in the practice of corporate socialresponsibility and seeking breakthrough in its ESG indicators. In 2019, CIFIestablished ESG Management Committee and ESG Work Group to advance the Group'ssustainable development through committed efforts in environmental protection,social responsibility and governance capacities. The Group commits the missionof "building for a better life", and constantly pursue quality development andimprovement in corporate governance capacity.

Its ESGreport demonstrates the Group's praiseworthy efforts in implementing corporateresponsibilities in five key aspects, namely green buildings, constructionwith quality, compliance and integrity, staff welfare and philanthropy, andcommitment to long-term sustainable development.

Green buildings have been the focus of CIFI's ESG investing practice. TheGroup brings full play to its expertise and enforces the green conceptthroughout its process from product design, construction to supply chainmanagement. Besides, it actively engaged in the development and application ofthe green building system, and has stipulated the standard of greenness andhealth for residential and office projects, which offers guidance on deliveryof green and healthy buildings. In 2019, CIFI obtained a total of 15 greenbuilding certifications. Specifically, the Metropolis Mansion project inHangzhou was granted with BREEAM four-star rating, and there were two otherprojects certified with China Health Building Label.

CIFI has been consistently carrying out the management philosophy of"quality our top priority". The Group is certified by the ISO9001 qualitymanagement system and has set up an all-rounded quality management system toensure high-quality delivery of its projects. It enforces "lifetime accountability" system to assureconstruction quality and has defined five key responsible parties for"geological survey, design, supervision, construction and contracting"respectively and refined the management system of construction records. In2019, CIFI added the indicator of client satisfaction rate into the performanceevaluation of the heads of regional offices. In this way, the staff put qualitymanagement as top priority and seek to assure premium product quality. CIFI'sall-rounded quality assurance efforts are highly acclaimed within the industry.Its projects have won multiple prizes, such as the Tien-yow Jeme CivilEngineering Prize, BALI National Landscape Award and the International PropertyAwards etc. In particular, CIFI earned 57 titles at the 15th Kinpan Awards, andretained the first place in the master tally.

Bycombining regulations and corporate culture, CIFI has compiled a series ofaudit and supervision regulations, and established a sound anti-fraud system.Meanwhile, work procedures and accountability are implemented to avert powervacuum and ensure the Group's lawful and compliant operation. It launched theWeChat public account-- "CIFI Anti-Corruption" in 2019, the public accountregularly pushes updates about the Group's integrity campaign and cases ofwarning and offers a channel for online reporting, so as to raise itsemployees' awareness of anti-corruption. At the end of 2019, the Group wasnamed an "Advanced Unit" in the national enterprise anti-fraud campaign for itsoutstanding performance in internal audit, supervision and anti-fraud efforts.The Group also earned recognition from the capital market for its highlyacclaimed corporate governance capacity. Specifically, it won titles such asChina's Top 50 Boards of Directors by the Fortune China, and the BestCorporate Governing Body and Best ESG Metrics in Asia by the InstitutionalInvestor.

CIFI'sspecial attention to employees' health and safety are embodied in all aspectsof its governance. In addition to strict compliance with national mandatoryregulations regarding production safety, the Group has prepared and implementedmany guidelines on safety management, strict standards about on-site inspectionand management of compliant construction, safety and health, and environmentalprotection, as well as each party's responsibilities and power in safe andcompliant construction. At the same time, the Group endeavors to be named the"national / provincial / municipal safety and compliance demonstrationconstruction site", and includes corresponding mechanism into its projectincentive & penalty system. The ESG report reveals that no major constructionsafety or quality accident was reported among CIFI's projects in 2019. Inaddition, 34 projects were named government's demonstration construction sites,and 29 projects won provincial or above level honors. It's worth mentioningthat CIFI has been named the "Best Employer-China" by Aon Hewitt China forthree consecutive years since 2017, the one and only company within theindustry to win the title for three consecutive years.

Abidingby the philosophy of "altruism through philanthropy", CIFI has beenconsistently committed to philanthropy in areas such as repaying hometown andsubsidizing education for many years, making all-out contribution to pandemicand disaster relief, and striving for better life. Up to now, CIFI has madeaggregated donations worth over RMB 300 million. When the COVID-19 pandemicbroke out at the beginning of 2020, CIFI granted RMB 20 million as thecontainment and relief fund to combat the disease. Meanwhile, the Group'sleasing apartments, commercial properties and education businesses also haswaived the rent and relevant costs and offered special discounts to medicalworkers, through which it joins hands with all parties to weather through thetough time.

Mr. LinZhong, Chairman of CIFI Holdings' Board of Directors, said: "We are facing an era that full ofuncertainties and volatilities, a successful enterprise is not only aboutimprovements on short-term financials, but more about its potential of anddedication to sustainable development. In response to customers' needs andcreating values to our employees, CIFI will continue to uphold itsenvironmental accountability and repay the society with its accomplishmentsgoing forward. Looking ahead, CIFI will continue to fuse the ESG element intocorporate strategies, endeavor to add presence in key EGS indexes, and striveto develop itself into a sustainable centenary group as a benchmark of an ESGelites within the real estate industry."

About CIFI (Group):

Headquartered in Shanghai,CIFI is one of China's top real estate developers. CIFI principally focuses ondeveloping high-quality properties in first-, second- and selective third-tiercities in China. CIFI develops various types of properties, includingresidential, office and commercial complexes.

To learn more about theCompany, please visit CIFI's website at: