Representatives from Shui On Xintiandi and CLP Group pose for a photo during a press conference on the companies’ strategic partnership, in Nanjing, Jiangsu province, China, in December 2023. (PROVIDED TO CHINA DAILY)

Shui On Xintiandi (Shui On), a leading investor and manager of premium and sustainable commercial properties in the Chinese mainland, has signed a strategic cooperation framework agreement with CLP Group (CLP), one of the largest investor-owned power businesses in Asia Pacific.

The two enterprises will cooperate in the development of zero-carbon energy and green power to support the low-carbon energy transformation of the commercial real estate industry through high-efficiency renewable energy solutions, in line with the nation’s dual carbon goals of achieving peak emissions by 2030 and carbon neutrality by 2060.

The first phase of the cooperation is a 10-year power purchase agreement under which CLP will supply green power from its Jiangsu Yangzhou Gongdao Solar Power Station to Shui On’s Nanjing International Finance Center (IFCX) – an iconic commercial and office complex in the heart of Nanjing’s business district. 

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The solar energy will meet the power needs of the entire complex from Jan 1, 2024, reducing its annual carbon emissions by an estimated 21,000 tons, which is equivalent to the carbon sequestration impact of 140 hectares of forest. 

This strategic partnership with CLP will be instrumental in achieving our goal for 100 percent green energy at Nanjing IFCX, which is expected to increase the percentage of renewable energy in our total electricity consumption from 15 percent to 20 percent.

Allan B. Zhang, CEO of Shui On Xintiandi Limited

The agreement is the first medium-to-long-term agreement of its kind signed by CLP in the mainland. Another Shui On development currently under construction, Nanjing Baiziting, will also run solely on renewable energy when it is completed.

The green partnership will begin in the Shanghai and Jiangsu province region before expanding further afield as the two enterprises explore more comprehensive cooperation in the area of new energy and renewable energy including the supply and purchase of green energy and environmental, social and governance (ESG) initiatives over the longer term.

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Earlier this year, CLP’s subsidiary CLPe signed an agreement with Shui On for Hong Kong’s first cooling service project. The new cooling system installed at Shui On Centre in Wan Chai has significantly enhanced the energy efficiency of this Grade A office building. 

Allan B. Zhang, chief executive officer of Shui On Xintiandi Limited, said, “As a pioneer of sustainable premium urban communities, Shui On recognizes that development of future low-carbon cities is a key area for reducing the planet’s overall carbon emissions. We have adopted a holistic carbon reduction system, from design to operation, to reduce carbon emissions through the use of renewable energy, improving energy management and creating green and healthy buildings.”

Allan B. Zhang (left), chief executive officer of Shui On Xintiandi Limited, shakes hands with Roger Chen, CLP Group managing director – China, during the signing ceremony of a strategic cooperation framework agreement between the two companies, in Nanjing, Jiangsu province, China, in December 2023. (PROVIDED TO CHINA DAILY)

“We are also working toward industry best practices in tenant and customer safety and well-being and are inviting everyone in our value chain to join our sustainability journey. This strategic partnership with CLP will be instrumental in achieving our goal for 100 percent green energy at Nanjing IFCX, which is expected to increase the percentage of renewable energy in our total electricity consumption from 15 percent to 20 percent. By introducing green energy in Baiziting and other projects, we will continue to advance near-zero carbon practices, setting a sustainability benchmark for future urban communities.”

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Roger Chen, CLP Group managing director – China, said ESG practices and sustainable development were fundamental pillars of CLP’s development strategy. 

“As early as 2007, CLP established its Climate Vision 2050 with the aim of achieving net-zero greenhouse gas emissions across its value chain by 2050. Increasing our investments in renewable energy generation in the Chinese mainland is a key part of our efforts to promote the adoption of zero-carbon energy,” he explained. 

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Chen added, “CLP is also committed to providing green energy solutions to businesses and providing comprehensive support to customers in the pursuit of sustainability and ESG objectives. The strategic partnership between CLP and Shui On is mutually beneficial and underscores CLP’s commitment to promoting renewable energy and creating collaborative platforms with enterprises to advance in the field of new energy, and to make a positive contribution to the nation’s dual carbon goals."

Shui On Xintiandi first entered the Nanjing market in 2018 with its innovative office project, INNO Zhujiang Lu, and has established the city at the forefront of its commercial asset management service innovation and green sustainable practices.