Kaisa Group regards sustainable governance as an indispensable part of its development. (PHOTO PROVIDED TO CHINA DAILY)

With the deepening of urbanization in China, enterprises have placed their environmental, social, and governance (ESG) responsibilities in an ever-more-important position.

Among them is Hong Kong-based property developer Kaisa Group Holdings, which has been regarding sustainable governance as an indispensable part of its development since its founding in 1999.

As a Hong Kong-listed company, Kaisa has been proactively responding to Hong Kong Exchanges and Clearing’s call to put ESG benchmarks in a vital position in company’s development.

Upon the 21st anniversary of its establishment, Kaisa has become a leading property developer on the mainland, and developed rich experience in urban renewal in the Guangdong-Hong Kong-Macao Greater Bay Area

Upon the 21st anniversary of its establishment, Kaisa has become a leading property developer on the mainland, and developed rich experience in urban renewal in the Guangdong-Hong Kong-Macao Greater Bay Area.

As a large-scale, comprehensive investment group in China with real estate as its main business, Kaisa made its first pot of gold in urban renewal, and regards it as a core development engine.

Urban renewal

As of end-2019, the property developer has 147 urban renewal projects in plan, covering 40 million square meters of land area across first-tier and major second-tier cities in the Chinese mainland, with a focus on the Bay Area.

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According to the group’s plan, up to 1 million sq m of gross floor area in pipeline will be converted to land bank each year.

Over the past 21 years, Kaisa has completed urban renewal projects of nearly 13 million sq m, and developed a professional team of over 600 people.

In reconstructing dilapidated areas, Kaisa positions itself as a “public service provider”, by promoting regional upgrading through its urban renewal projects. 

Adhering to a people-oriented spirit, the group aims at revitalizing core land resources, and improving residents’ living environment in these projects. Meanwhile, the developer proactively responds to urban planning policies of the government, as well as people’s livelihood demands.

It builds public service facilities in the community, such as education, healthcare, culture and sports facilities. At the same time, it provides affordable housing for low- and middle-income families, with a proportion of up to 10 percent of total units in urban renewal residential projects, to increase social value, and benefit multiple parties.

A flagship urban renewal project of the group is the Kaisa City Plaza located in the Longgang district of Shenzhen, with a land contribution rate of over 50 percent. Besides various public facilities, there are also 5,568 units of affordable housing, with a total floor area of 311,950 sq m.

The Kaisa City Plaza in the Longgang district of Shenzhen, the group’s flagship urban renewal project, has a land contribution rate of over 50 percent.(PHOTO PROVIDED TO CHINA DAILY)

Apart from the mainland market, Kaisa also strives to contribute to urban renewal in Hong Kong. In January, the group won a renovation contract in Sai Wan on western Hong Kong Island to turn three blocks of 52-year-old six-floor buildings into a quality residential complex.

On March 17, Kaisa was named one of the “2020 China Outstanding Urban Renewal Real Estate Operating Companies” by China Index Academy and China Real Estate Top 10 Research.

Kaisa stressed that urban renewal is the company’s core competitiveness. It pledged to use its advantages to promote the renewal of urban structures, while making greater contributions to society and the environment.

The company also adheres to scientific and low-carbon development. In 2019, Kaisa obtained five green construction certificates, with a green construction area of 977,208 sq m.

Among them, the Kaisa Financial and Technology Center based in Shenzhen, set to be the company’s future headquarters, has been awarded the 4th edition of Leadership in Energy and Environmental Design (LEED) Gold Certification by the US Green Building Council.

To offset the unavoidable emission of greenhouse gases and other air pollutants during land development, the group planted about 4,000 trees in 2019, which reduced about 92 tons of carbon dioxide.

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Philanthropy

Besides land development, Kaisa has been committed to fulfilling its social responsibilities in corporate ºcitizenship.

So far, the company has donated nearly 1.6 billion yuan (US$229 million) to more than 80 charitable projects in poverty alleviation, education, healthcare, disaster relief, and environmental protection on the mainland.

Under Kaisa’s help, Longmen county of Huizhou city in eastern Guangdong has been transformed from a poor county to a province-level model on successful poverty alleviation. 

The group also proactively supports education development in Hong Kong. Earlier this year, Kaisa founded a joint research institute in cooperation with the Hong Kong University of Science and Technology, and donated HK$200 million (US$25.8 million), to support the university’s teaching and scientific research, and incubate innovation and entrepre-neurship projects.

The company also has a team of volunteers to contribute to public welfare and community service in Hong Kong.

During the Dragon Boat Festival in June, the volunteer team visited 100 units of elderly people living alone at the Tai Wo Hau Estate in Kwai Tsing, southern New Territories, and donated health products, face masks and other daily necessities.

“To do our best for society” has become a mission of Kaisa. On the occasion of its 21st anniversary, the company pledges to continue its commitment to environmental and social development, and create a space of harmony, happiness, and sustainability for society as a whole.