Hang Lung Properties and LVMH Group Launch Common Charter: 20 Actions to Accelerate Sustainability Progress in 2023
HONG KONG, SHANGHAI AND PARIS - Media OutReach - 30 March 2023 - Hang Lung Properties (SEHK stock code: 00101) ("Hang Lung") and Moët Hennessy Louis Vuitton ("LVMH") (collectively hereafter, "the Groups") are delighted to announce that the Groups have formulated an ambitious agenda for sustainability action together entitled Common Charter: Joining Forces to Accelerate Change ("Charter"), which outlines a set of 20 innovative actions they will implement in 2023 to accelerate sustainability progress.
The Charter is the next important step for the first-of-its-kind sustainability partnership agreement ("Agreement") entered into by the Groups in October 2022. It follows their inaugural Real Estate & Climate Forum ("Forum") held in November 2022, which convened hundreds of people and generated more than 200 ideas.
Under the Charter, the Groups will pursue 20 concrete actions organized under the following four pillars:
- Climate Resilience, including sharing energy data, turning off lights at night, encouraging energy innovation through awards, and pursuing renewable energy;
- Resource Management, including a mandatory carbon footprint analysis, a shared database of low carbon materials, auditing waste streams, and innovative projects in recycling and reuse, water management, and biodiversity;
- People and Wellbeing, including air quality and acoustics projects, development of a shared learning agenda, and initiatives to enhance community wellbeing; and
- Sustainability Governance, including the use of digital platforms to improve environmental governance, and sharing of strategies for sustainable procurement.
To speed progress, leverage expertise and strengthen impact under the Charter, the Groups are partnering with a number of external organizations, including: Bluerisk on water management; CLP on renewable energy; GIGA (RESET) on carbon footprint assessment and low carbon materials; the Institute of Public and Environmental Affairs (IPE) on environmental governance; Schneider Electric on energy management; and TRASHAUS on waste audits and recycling. In addition, they are developing research projects on key challenges through the Urban Land Institute, and through Hang Lung's association with the Hang Lung Center for Real Estate at Tsinghua University.
Mr. Adriel Chan, Hang Lung Properties Vice Chair, and Chair of its Sustainability Steering Committee, said: "Hang Lung and LVMH have already covered much ground in the five months since entering our pioneering sustainability partnership. Now, we aim to design and shape even more innovative sustainability solutions together through the 20 actions that we will implement in 2023, as detailed in the Charter. We have been able to move so quickly together because of the trust between the two Groups, our embrace of innovation and 'learning by doing', and our commitment to accelerating positive impacts in sustainability. In early 2024, we will report back on how we did in all 20 action areas, as well as add new ideas for even greater impact."
"This partnership will be a model around the world, of how to create new partnerships between landlords and tenants. We need to accelerate improvements to the stores' environmental footprint. Synergies such as this one are key to addressing sustainability challenges. The Charter is a new phase in our partnership, one of action, through our 20 concrete measures. With the support of a new kind of changemaker – our great partners such as Bluerisk, CLP, GIGA (RESET), Schneider, and TRASHAUS – the Real Estate and Climate Forum established by the Groups is really a portfolio of solutions," said Ms. Helene Valade, LVMH Group Environment Development Director.
Some of the Charter actions have already begun. For example, the Groups are working with TRASHAUS on a waste audit covering the demolition process of a store renovation in Hang Lung's Plaza 66 in Shanghai. The audit is collecting data on wood, metal and mixed renovation waste, and investigating waste transit and recycling facilities, in order to identify ways to reduce waste and increase circularity. The Groups will then look to apply insights gained to other tenant renovations.
In a spirit of transparency and to encourage greater innovation and collaboration among stakeholders, the Groups are making the Charter public in its entirety. It is available for download in both English and simplified Chinese on their shared Forum website. Updated versions of the Charter, reflecting learnings, progress achieved – including quantifiable results from actions undertaken in 2023 – and new ambitions, will be released in 2024 and 2025.
Spanning Hang Lung's portfolio of properties across seven cities in mainland China, the Agreement engages 26 LVMH brands occupying over 90 retail spaces with a lettable floor area in excess of 27,000 sq. m. With plans to engage the employees and suppliers of both Groups, the partnership will run to the end of 2025, and is expected to be renewed thereafter.
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About Hang Lung Properties
Hang Lung Properties Limited (SEHK Stock Code: 00101) creates compelling spaces that enrich lives. Headquartered in Hong Kong, Hang Lung Properties develops and manages a diversified portfolio of world-class properties in Hong Kong and the nine Mainland cities of Shanghai, Shenyang, Jinan, Wuxi, Tianjin, Dalian, Kunming, Wuhan and Hangzhou. With its luxury positioning under the "66" brand, the company's Mainland portfolio has established its leading position as the "Pulse of the City". Hang Lung Properties is recognized for leading the way in enhanced sustainability initiatives in real estate as it pursues sustainable growth by connecting customers and communities.
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