Macau Property Opportunities | ESG

This Environmental, Social and Governance Report (the “ESG Report”) has been prepared with reference to The Ten Principles of United Nations Global Compact (“UNGC”). The ESG Report elaborates the environmental and social responsibility measures and performances of Macau Property Opportunities Fund Limited (the “Company”).

Core Business of the Group
The Company is in the process of an orderly and managed divestment of the three remaining portfolio properties. No further new construction or development activities will be undertaken save for the limited reconfiguration at The Fountainside.

The Company is solely focussed on and exposed to the high-end residential property market in Macau. It has never had any exposure to any property or other investment in the gaming or associated hospitality sectors and each investment is in full compliance with the parameters set out in the Company’s Prospectus.

Report Boundary
The ESG Report focuses on the environmental and social responsibility performances of the Company’s core business of investment in properties in Macau, as listed below:
• The Waterside
• The Fountainside
• Estrada da Penha

Overall ESG Approach
The Board understands the significance of ESG and has incorporated ESG-related risks into the Company’s risk management processes. The overall ESG approach is aimed at creating profit for shareholders in a responsible manner, while taking into consideration environmental and social responsibility and supply chain management.

The Company’s ESG Approach is developed based on The Ten Principles of UNGC. UNGC is a voluntary multi stakeholder platform which convenes multinational companies to align against The Ten Principles covering human rights, labour, environment and anti-corruption standards. The Board is committed to reflect the basic concepts of fairness, honesty and respect for people and the environment in its
business actions.

Environment
Commitment Principle
The Company strives to adopt environmental-friendly practices during our business operations so as to minimize the negative impacts on the environment and natural resources. It complies strictly with all the applicable environmental laws and regulations in Macau. Different environmental protection measures have been implemented at the key stages of property development, along with the incorporation of green building designs and the implementation of responsible construction practices at work sites. The Company also upholds the principles of recycle and reuse at its properties.

Initiatives and Performances
Property Design
The Company follows local green building requirements, which take into consideration green design elements such as building materials, indoor air quality, site selection and energy considerations. Examples of green building designs and features are provided as follows:

– Preserve and retain the cultural heritage façade of the historical building;
– Incorporation of passive building designs to improve ventilation and optimise sunlight exposure;
– Use of water-efficient fixtures; and
– Greening of rooftops.

Indoor air quality is improved through the introduction of the air purifying equipment. Measures capable of monitoring temperature and humidity in residential units and thus enhance the living conditions for residents have been implemented at One Central and The Fountainside.

Property Management
Various green measures have been adopted in our properties to improve the overall environmental performance. For example,

– Energy efficiency: energy consumption has been reduced by (i) replacing lighting fixtures with LEDs, (ii) reducing the amount of lighting used in common areas; and (iii) installing air-conditioning systems with energy efficiency labelling in accordance with local requirements.
– Tenants’ engagement: tenants are encouraged to minimize their resource consumption (electricity, water and material use) and are provided with recycling facilities to reduce waste.
– Rechargeable battery recycling: public collection points for rechargeable battery recycling have been provided and tenants are encouraged to use these
facilities for battery disposal. Certain materials in rechargeable batteries, such as cadmium, are hazardous to human health and the environment.

An effective environmental management system has been implemented. Some of the Company’s main environmental objectives regarding property management are as follows:

– Use of pesticides and cleansing agents in accordance to relevant regulations, aiming for zero incidents regarding their use and storage; and
– Manage community wastewater, waste and noise according to local standards.

Regulatory Compliance
The Company is not aware of any non-compliance with environmental regulatory requirements that may significantly impact the Company’s business.

Social Responsibility and Supply Chain Management
The Company strongly believes that quality property is a gateway to quality living. The Company strives to provide a quality property experience through innovation and sensitivity, as well as operating with integrity. Through such efforts, the aim is to improve the living quality of tenants and become their trusted partners.

Supply Chain Management
During the process of property construction and redevelopment, the Company carefully appoints external contractors by taking into consideration various factors such as human rights protection, non-discrimination of employment and occupation, environmental protection, construction safety and product safety. While selecting contractors for property construction, those who are familiar with the environmental, social and safety requirements and are in line with concerns over the abolition of child labour and anti-corruption are sought. Close contacts with the contractors on all constructions and sourcing affairs are established. Regular meetings to facilitate two-way communications take place. In addition, regular assessments of contractors, based on environmental and social risks, are performed.

Quality Services
To ensure the consistently high quality in its property management services, the Company aims to:

– Develop quality properties that embrace innovation and enhance the neighbourhood;
– Provide sincere service and ongoing improvement of its property management;
– Strive for high standards by building scientific and standardised property management, and achieve
customer satisfaction; and
– Provide a tasteful living environment for residents.

Protection of Privacy
To ensure the well-being of tenants, there is regular communication with them through satisfaction surveys which help to identify potential areas for improvement. Customers’ information is kept confidential and access is restricted.

Regulatory Compliance
The Company is not aware of any non-compliance with supply chain management that may significantly impact the Group’s business.