In recent years, the issue of climate change has increasingly become an international priority.In October 2021, based on the "3060" dual carbon goals announced by China, the State Council Information Office of China issued Responding to Climate Change: China's Policies and Actions, which points out that climate change is a common challenge to mankind.
In order to help mitigate the impact brought by climate change, the Group actively fulfill our corporate responsibility and respond to the carbon reduction targets and requirements announced by the government.
1. Identification and Prioritization of Climate-related Risks
In 2021, according to the disclosure recommendations of the Task Force on Climate Related Financial Disclosures (TCFD), the Group began our work on the identification and prioritization of climate-related risks. Each department conducted assessments on the potential impact brought by climate change on the Group in order to manage the climate-related risks effectively and reduce their impact on our business and financial position.
The Group has integrated climate-related risk management into our comprehensive management system. The Risk Management Committee, being the highest responsible institution in charge of risk management, will handle the overall management.
According to the risk categories recommended by the TCFD, we have identified risks based on national policies, industry trends, the Group's current operational position and stakeholders' priorities, among others, and listed 22 climate-related risks, including 10 physical risks and 12 transition risks.
4. Risk Management
Extreme Weather In order to reduce the impact of extreme weather on construction projects, the Group has issued the Guidelines for the Response to Routine Events of Projects of CIFI Group, which includes the response under extreme weather and establishes a long-term risk response mechanism to reduce the impact of such events on the normal construction of projects and reduce loss. All construction projects dynamically monitor the weather forecast, make advance warning and take emergency measures for abnormal weather, adjust working hours in the event of high temperature and extremely cold weather in a timely manner, and secure the heat-reducing and warming supplies, in order to avoid personnel and property loss.
In order to improve the defense performance of buildings and ensure the safety of residents and property, we take into account physical risks in the design stage of projects, such as anti-typhoon design in coastal areas, the appropriate upgrade of mechanical drainage level of sunken plazas and sunken sites, the appropriate consideration of elevating the plus minus zero elevation of the first floor for riverside projects and the reduction of flood risks. In addition, we have formulated the 2021 Guidelines for Electromechanical Cold-Resistant and Warming Design of CIFI Group and other guidelines to guide the requirements of the project design in each region for extreme cold and other abnormal weather.
Policy and regulation risks In the context of China facing the long-term trend of green economy and low-carbon transformation, the Group should manage the carbon emissions generated by our operations and comply with and respond to national regulations and policies related to the reduction of carbon emissions. At the same time, the Group pays close attention to the regulations and policies related to climate change and carbon emission reduction that may have significant impact on us, analyzes the trend of carbon peak and carbon neutrality policies, and begins preparation in advance. Through the Design Guidelines for HUMAN Intelligent Healthy Life 3.0 of CIFI Group, the Group has put forward clear requirements for the green building certification, the selection of energy-saving equipment and the design of carbon emission reduction for the projects in every region.
Market Risks As customers' preferences for green design projects such as high energy efficiency, low emissions, water saving and greening become more obvious, the Group immediately grasps the changes in their preferences during the process of customer group analysis and positioning. The Design Guidelines for HUMAN Intelligent Healthy Life 3.0 of CIFI Group sets out design requirements by benchmarking the international WELL certification system in response to the increasing customer preference on low carbon and health.
Technical risks The Group has vigorously promoted the application of renewable energy in every project and issued several guidelines for the application of renewable energy, including the 2021 Design Guidelines for Solar Water Heating System of CIFI Group to provide guidance for reasonable design of energy structure and the maximization of renewable energy application for projects in all regions. The Group actively responds to the local governmental policies for ultra-low energy consumption buildings and actively explore the ultra-low energy consumption technology system.
As a pilot project, Shanghai Century One Mile becomes the first ultra-low energy consumption residential project in Shanghai. In addition, we have upgraded the transparent factory construction system and accelerated the green building process through technological innovation. Snail Dongdong has been founded with the goal to reduce resource consumption in the construction process and empower green construction by improving construction efficiency.
Shanghai Century One Mile, the first low-consumption residential project in Shanghai
Shanghai Century One Mile adopts a series of energy -saving measures and adds optimized design to the building, surrounding structure, air tightness control and other aspects, which not only makes the energy consumption level of the project much lower than that of conventional buildings, but also ensures the healthy environment and comfortability of the buildings. It is estimated that Shanghai Century One Mile can reduce carbon dioxide emissions by more than 1,225 tons per year.
Active and passive ultra-low consumption design
Passive: Natural lighting and ventilation, exterior wall and roof insulation, high performance exterior windows, building air tightness
Active: Fresh air system, high-efficiency air conditioning, energy-saving lightening, energy-saving lift, heating equipment system saving energy by more than 50%