Connections | Hang Lung

Hang Lung and LVMH Moët Hennessy Louis Vuitton (“LVMH”) announced a pioneering and ambitious partnership to collaborate on sustainability initiatives across mainland China in October, aiming to accelerate innovative collaboration on climate and sustainability action in the real estate and retail sectors.

Only one month after signing a first-of-its-kind sustainability partnership in Paris, the two Groups co-hosted the two-day inaugural Real Estate & Climate Forum.

Setting New Path with Thought-provoking Ideas

The world is facing a climate crisis and progress on sustainability is not happening quickly enough. Hang Lung and LVMH believe “business as usual” is over. The sense of urgency has led both Groups to form an unconventional partnership without precedent.

The partnership goes beyond ordinary green leases around the world by leveraging cross-sector expertise to tackle ESG challenges and enable both Groups to achieve sustainability progress they cannot realize on their own.

Mr. Adriel Chan, Hang Lung Properties Vice Chair, and Chair of the Sustainability Steering Committee (middle) joins the two-day Real Estate & Climate Forum and delivers his closing remarks. He is joined by Mr. John Haffner, Hang Lung Properties General Manager – Sustainability (left) and Mr. Nicolas Martin, LVMH Sustainable Store Planning Manager (right)

Mr. Weber Lo, Chief Executive Officer of Hang Lung Properties, delivers opening remarks at the Real Estate & Climate Forum in Shanghai

	Ordinary Green Leases	Hang Lung and LVMH Sustainability Partnership
Level	Between individual corporates	Group-level
Scale	Focus on individual tenants	Across seven cities in mainland China, engaging 26 LVMH brands, occupying 90+ retail spaces
Scope	“E” in the ESG	Every aspect of the ESG

Strategies to Drive Creativity

Redesign work processes: With the comprehensiveness to engage numerous brands, cities, and diverse stakeholders, the sustainability heads of both Groups found new modes of decision-making with a focus on efficiency and productivity. As a result, they were able to craft details of the partnership and co-host the Forum within a short period.

Embrace culture change: The Forum was designed to bring a certain level of discomfort to motivate subject-matter experts to step out of their comfort zone. To shift mindsets, no titles identified at the Forum to establish an atmosphere of equality and encourage ideas and feedback to be considered regardless of organizational role and status.

Aim to tackle the problem: Sustainability events often focus on awareness-raising, and the Forum sets itself apart by transforming ideas into concrete actions. Changemakers were tasked to sort, evaluate, and identify measurable actions. Developed the basis for Common Charters to be announced by the two Groups in the first quarter of 2023.

Real Estate & Climate Forum

The Sky is the limit

“Business as usual” is not an option anymore in the face of the climate crisis. To leave a better world for future generations, both Groups are demonstrating that we must be future-focused and change-oriented. Innovation is the catalyst for change and will distinguish Hang Lung and LVMH as sustainability “leaders”, not “followers”. The sky is our limit, and Hang Lung encourages everyone to embrace creativity and put a new lens to look at this “old” problem.

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Advance Sustainability by Challenging the Status Quo

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