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4.2.2 ESG Practices of C-REITs Cushman & Wakefield data shows that, as at April 2025, a total of 15 public China REITs have voluntarily disclosed their ESG performance through standalone reports. The underlying asset types encompass industrial parks, consumer infrastructure, warehousing and logistics, rental housing, transportation, and clean energy infrastructure. Of them, approximately half of the rental housing and clean energy REITs have implemented ESG information reporting practices. The number of ESG reports disclosed by public REITs has shown a significant upward trend overall, nearly doubling compared to the same period in 2024. A review of the ESG reports published by public REITs reveals three main characteristics in terms of content: • Prepared based on both domestic and international standards. Most of the published REITs ESG reports adopt topics from the Guidelines for Preparing Sustainability Reports of Listed Companies issued by the Shanghai, Shenzhen, and Beijing stock exchanges, while also aligning with the GRI Standards released by the Global Reporting Initiative and the United Nations Sustainable Development Goals (SDGs). • Integrating ESG into the high-quality development business model of REITs. Currently, public REITs’ ESG reports primarily combine sustainability content from both fund managers and operating institutions. Leading REITs in the industry (such as the China Resources Commercial Asset Closed-end Infrastructure Securities Investment Fund) have gone a step further by integrating ESG into their business models and establishing sustainable development strategy frameworks. • Responses to material topics highlight the underlying asset class attributes and operational characteristics of REITs. In addition to conventional topics, industrial park REITs focus on empowering tenants and supporting industrial development; consumer REITs emphasize disclosures on stimulating consumer vitality, ensuring service quality, and protecting consumer and tenant rights; rental housing and transportation REITs actively respond to topics related to providing social services and improving people’s livelihoods; while clean energy REITs highlight environmental performance, showcasing green energy supply and ecological value creation.

Common ESG topics disclosed by categories of public REITs are classified and listed below based on industry commonalities and asset-specific characteristics.

Dimension

Common Topics

Energy management, water resource management, waste management, low-carbon operations, climate change response, biodiversity protection

Environmental

Employee rights, employee training and development, occupational health and safety, service quality, information security and privacy protection, supply chain management, social welfare

Social

Fund governance, sustainability management, stakeholder communication, business ethics, compliant operations, information disclosure, risk management, investor returns

Governance

Source: Compiled by Cushman & Wakefield based on publicly available information

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