Which sustainability milestones are linked to senior management pay?

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Sustainability Milestones Linked to Senior Management Remuneration

Hongkong Land has implemented a new Long-Term Incentive Plan that directly links senior management remuneration to the achievement of specific sustainability milestones. This initiative underscores the company's strategic integration of environmental, social, and governance (ESG) factors into its core business operations and leadership accountability. The plan aims to drive performance against key environmental targets and responsible investment principles.
Emission Reduction Targets

A significant sustainability milestone tied to senior management pay involves the company's progress in reducing carbon emissions. Hongkong Land has achieved a 37% reduction in Scope 1 and 2 emissions as of 2025, measured against a 2019 baseline. This accomplishment surpasses the halfway point towards their stated 2030 carbon reduction objectives, demonstrating tangible progress in environmental stewardship that influences executive compensation.
Responsible Investment Principles

The company's commitment to responsible investment practices is another crucial area linked to senior management remuneration. Hongkong Land became a signatory to the United Nations Principles for Responsible Investment (UNPRI) in 2025. This adherence to a global framework promoting the integration of ESG factors into investment decisions signifies a fundamental shift in corporate governance and investment strategy, directly impacting performance metrics for leadership.
Green Asset Fund Management

Furthermore, the establishment and performance of sustainable investment vehicles are connected to executive incentives. Hongkong Land launched Singapore's largest commercial real estate private fund, the Singapore Central Private Real Estate Fund (SCPREF), which specifically targets ultra-premium and green-certified assets. The fund's alignment with the company's decarbonisation pathways and its focus on sustainable properties represent key performance indicators within the incentive plan.
Sustained ESG Leadership Recognition

The company's consistent recognition in leading sustainability indices also plays a role in evaluating senior management performance. Hongkong Land has maintained its position as a member of the Dow Jones Best-in-Class World Index for two consecutive years and has been included in the Dow Jones Best-in-Class Asia Pacific Index for four consecutive years. These sustained high-tier ESG rankings reflect the company's ongoing commitment to sustainability leadership, which is integrated into the long-term incentive structure for its senior executives.

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Which sustainability milestones are linked to senior management pay?

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