Asia Pacific Capital Markets Hub 2024 - 2025

In terms of disclosure and publication formats, the ESG reports published by public REITs exhibit three main characteristics: • First ESG report prioritizes timeliness. Some public REITs (such as Huaxia TBEA New Energy REIT and China Merchants Shekou Rental Housing REIT) have published their ESG reports along with their annual reports within the first year of listing, demonstrating that fund managers highly value market expectations for comprehensive and timely information disclosure and are proactively advancing ESG practices. • Continuous ESG reporting over multiple years. Public REITs that commenced publishing ESG reports in 2022 (such as CCB Zhongguancun REIT) have adhered to a long-term approach, consistently disclosing ESG information annually and continuously enhancing the refined management of ESG data. • Self-initiated disclosure and promotion. All published ESG reports have chosen not to disclose via stock exchange websites but instead released them on company websites or official WeChat accounts, using reader-friendly formats such as one-page summaries to highlight key points of the full reports. 4.2.4 Summary and Outlook The integration of ESG is both an important approach for China’s public infrastructure REITs to actively respond to the national “dual carbon” strategy, and an inevitable trend for the high quality development of the REITs market. From the ESG reports published so far, it is evident that China’s public REIT market places great emphasis on ESG and is proactively implementing related practices, achieving notable results. It is particularly worth noting that leading public fund managers are driving the industry’s sustainable development by deeply integrating ESG with REITs. On March 31, 2025, ChinaAMC became the first domestic public fund to sign the United Nations Principles for Responsible Investment (PRI), and on the same day, all eight public REITs under its management released their 2024 ESG reports simultaneously. This marked the first time in China that multiple REITs managed by a single fund manager jointly released their ESG achievements. Compared with international best practices, the awareness and implementation of ESG assurance and ESG ratings in China’s public REITs still need further development. ESG assurance can ensure that disclosure content meets standards and regulatory requirements, while ESG ratings provide investors with objective assessments and industry comparisons. Currently, leading fund managers of infrastructure public REITs in China are actively promoting participation in GRESB ratings, exploring ways to bridge infrastructure and sustainable finance. In the future, as regulatory requirements continue to improve and industry momentum grows, ESG is expected to become a core dimension in REITs evaluations, facilitating the green, standardized transformation and upgrading of the REITs sector. Following the recognition of its joint study with CICC in 2023, titled Building an ESG Evaluation System for Infrastructure to Support the Normalized Development of China’s Public REITs, as an Outstanding Key Project Report by the Securities Association of China, Cushman & Wakefield’s ESG team has continued to deepen its ESG consulting services in the REITs market. The team stays attuned to developments in ESG information disclosure within the REITs market, as well as regulatory policy changes regarding disclosure frameworks, and maintains close communication with ESG standard-setting organizations, issuers, investor groups, and other stakeholders. Leveraging Cushman & Wakefield’s professional expertise in sustainability consulting, we actively engage in industry discussions and practice sharing, striving to work alongside all parties to spearhead the sustainability of China’s public REITs market.

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