Spearheading the effort to decarbonize real estate across China, we are using nearly 100% low carbon emissions steel for all above ground structural plates (to be manufactured into columns and beams) and reinforcing bars of our Pavilion Extension at our flagship Plaza 66 mall in Shanghai. This marks the first commercial real estate project in mainland China to incorporate low carbon emissions steel, sourced from Baoshan Iron & Steel Co., Ltd. ("Baosteel"), achieving a 35% reduction in the steel’s embodied carbon compared to conventional steel alternatives.

Real estate accounts for more than 38% of China’s total annual carbon dioxide emissions. In our case, steel emissions accounted for approximately 40% of its total embodied carbon emissions in 2023, making steel decarbonization essential for achieving its goal of reducing its scope 3 greenhouse gas emissions. Hang Lung’s low carbon emissions steel transaction with Baosteel is an example of how leadership in real estate can help China reach its goal of carbon neutrality by 2060. 

Baosteel will supply 1,171 tonnes of its BeyondECO^® low carbon emissions structural steel and 325 tonnes of BeyondECO^® low carbon emissions reinforcing bars for the Plaza 66 Pavilion Extension project, which is now underway and due for completion in 2026.

To meet Hang Lung’s stringent low carbon emissions steel tender specifications for the project, the main contractor and Baosteel collaborated closely to provide accurate product-level carbon emissions data with the Company. This collaboration set a new industry standard for transparent, traceable and trusted emissions data. Baosteel calculated the products’ carbon footprint through Baosteel intelligent Carbon Data platform using a lifecycle analysis model developed by Shanghai E-Carbon Digital Technology Co., Ltd. ("EC-Digital"). This data was verified by TÜV SÜD, a global third-party certification body.

Notes to Editors:

1. Hang Lung’s Leadership in Decarbonization Commitments 
   Hang Lung was the first real estate company in mainland China and Hong Kong to obtain validation from the Science-Based Targets initiative (SBTi) for its net zero targets in accordance with SBTi’s Net Zero Standard in December 2022. 
   Hang Lung was the first real estate company in mainland China and Hong Kong to join Climate Group’s SteelZero initiative in December 2023, according to which the company commits to transitioning to using 50% lower emission steel by 2030 and setting a clear pathway to using 100% net zero steel by 2050.

2. BeyondECO^® 
   BeyondECO^® is Baosteel’s groundbreaking mass-produced low carbon emissions steel product that reduces emissions through a combination of renewable energy and recycled steel scrap. The exact combination of these contributing factors varies from product to product. For example, the reinforcing bars used in the Plaza 66 Pavilion Extension project achieved carbon emission reduction of more than 50% through a combination of 100% renewable energy and 60% recycled scrap.  

* This emissions factor is based on Hang Lung’s specification through its main contractor to Baosteel that "carbon emissions should be less than 1.68 tCO₂e/t." The final emissions factor calculation will be subject to third-party verification.

** The baseline emissions factors for steel are derived from Baosteel's 2023 field data and have been verified by TÜV SÜD.