Nan Fung Group Releases SEWIT Sustainability Report

Delivers HK$34 Million in Social Value through its Portfolio, Integrating Sustainability into Business Strategies

Download Link for SEWIT Report: https://bit.ly/3TOjJo3

HONG KONG, Sept. 27, 2024 /PRNewswire/ -- Nan Fung Group ("Nan Fung" or the "Group") releases its sustainability report, the "SEWIT Report 2023-24", which details the ^[1]Group's progress and accomplishments under the "SEWIT" sustainability framework during the reporting period.

Nan Fung has long been committed to fostering sustainable and resilient communities as part of its overarching, long-term development strategy. In 2022, the Group established the "SEWIT" sustainability framework, and has since integrated the framework's five core strategic pillars — Social Cohesion, Environment, Wellness, Innovation, and Technology — into daily operations, demonstrating an unwavering commitment to co-create shared value and positive impact alongside business partners, tenants and stakeholders.

This year's report discloses, for the first time, that Nan Fung has delivered approximately HK$34 million in social value, verified by a third-party. This achievement underscores the Group's substantial contribution to fostering social cohesion through its thoughtfully-designed community initiatives and robust impact measurement methodologies.

Ms. Vanessa Cheung, Managing Director of Nan Fung Group, Founder of The Mills, and SEWIT Committee Chairperson, remarked: "The disclosure of the social value delivered by the Group marks a significant milestone in our impact measurement journey and enhances the transparency of Nan Fung's sustainability initiatives. With deeper insights into the tangible, positive impacts on individuals, communities, and society at large, Nan Fung can become better positioned to make more strategic and forward-thinking decisions in its overall strategy. Moving forward, we aim to expand this impact-driven approach across different facets of our operations where applicable, and continue amplifying SEWIT's influence by working collaboratively with tenants, customers, and the broader community to achieve our sustainability goals." 

The "SEWIT Report 2023-24" summarises the Group's progress and achievements in implementing the SEWIT sustainability framework over the past year. Key highlights include:

Delivered HK$34 Million in Social Value through Curating Social Programmes

Nan Fung conducted location-based materiality assessments for its major properties, engaging in focus groups, interviews, and surveys to better understand stakeholder concerns and priorities regarding social issues. These insights have informed more effective decision-making processes, improving the quality and impact of community-based initiatives. From these assessments, the Group identified more than 20 key social issues, such as mental health, social inclusion, local procurement and local employment. Based on these findings, Nan Fung delivered approximately HK$34 million in social value in Hong Kong and London through implementing various targeted social programmes, positively impacting a wide array of stakeholders, including employees, tenants, partners, and members of the local community from various backgrounds. This showcases the Group's significant contribution to strengthening social cohesion.

21% of Tenants Committed to "Net Positive Lease", Leveraging Tenant-Landlord Synergy for Impact

• In 2023, Nan Fung launched the "Net Positive Lease" tenant engagement programme to encourage sustainable practices, offering participating tenants benefits such as management fee incentives, marketing exposure, and priority access to eco-friendly facilities and programmes. Through the integrated data management platform, Neuron, participating tenants at AIRSIDE, The Mills, and other major properties can access real-time data on energy consumption, water usage, and recycling volumes. Nan Fung also provides carbon audits to tenants and offers specific recommendations to help them establish strategies and achieve sustainability goals.
• As of March 2024, 21% of tenants of Nan Fung's major properties in Hong Kong have committed to the "Net Positive Lease" programme. The Group is committed to expanding this initiative in phases to its major properties across mainland China, the UK, the US, with the goal of having 50% of its global properties committed to the programme by 2025^[2].    

NF Membership Programme Generates More Than 1.45 million NF Seeds, Promoting Green Living and Supporting the Community

• Nan Fung's "NF Touch Membership Programme" and its corresponding mobile app encourage visitors and tenants to earn NF Seeds by engaging in healthy lifestyle activities. Members can collect NF Seeds by completing daily health missions, adopting green living habits, or shopping at eco-friendly merchants. NF Seeds can then be shared to an array of charity organisations to support vulnerable communities, abandoned animals, and more. This year, NF Touch members have collectively shared more than 1.45 million NF Seeds to partner charity organisations, paying it forward to those in need.

Hong Kong Property Portfolio Receives SBTi Approval for Short-Term, Long-Term, and Net-Zero Targets

• Nan Fung acknowledges mitigating climate-related risks as critical to its long-term business success and strives to reduce our environmental impact and lead the transition towards a more resilient future for all. This year, the near-term and long-term GHG emissions reduction targets for the Group's Hong Kong property portfolio were validated and officially approved by the Science Based Targets initiative (SBTi) in alignment with the SBTi Net-Zero Standard, recognising the Group's dedication in reducing GHG emissions.
• Nan Fung's flagship project AIRSIDE in Kai Tak has garnered eight prestigious green and smart building certifications, including the BEAM Plus New Buildings v1.2 – Final Platinum. Additionally, AIRSIDE has won the Grand Award in the New Buildings category (Completed Projects – Commercial) at the biennial Green Building Award 2023, co-organised by Hong Kong Green Building Council and Professional Green Building Council.

Looking ahead, Nan Fung will continue to publish sustainability reports regularly and advance its sustainability efforts, spearheading the transition towards a more resilient and sustainable future.

About Nan Fung Group

Nan Fung Group is one of the largest privately held conglomerates in Hong Kong with global interests in real estate development and investment, which holds a well-diversified and substantial financial investment portfolio. The Group was founded in 1954 and has a track record spanning more than 50 years with over 170 projects including residential, commercial and industrial buildings. The Group also strategically focuses on first-tier cities in mainland China and recognises attractive opportunities for development and investment overseas, including New York, Boston and London. 

In recent years, the Group has expanded its investment focus to ICE (Innovation, Creativity and Entrepreneurship), exemplified by its signature project, The Mills, a revitalisation of its legacy yarn factories into a hub promoting techstyle (intersection of technology and lifestyle) and an integrated destination housing an experiential shopfloor, a startup incubator, and a cultural museum. The Group has also made significant progress in investments related to life sciences in the US via Pivotal; and in mainland China via an affiliate, New Frontier, which focuses on healthcare, elderly care, education, and new technology.