CR Land Sustainable Procurement Policy

1 Purpose

1.1 China Resources Land Limited (CR Land or the Group) is dedicated to the sustainable procurement. For this goal, we incorporate the environment, society and management into our procurement decision process and encourage our suppliers and other cooperation partners to jointly abide by the Sustainable Procurement Policy, so as to build the sustainable supply chain.

1.2 This Policy shall be adopted together with pertinent procurement management systems, including CR Land Tendering and Procurement Management System, and Implementation Rules of Tendering and Procurement Management of the CR Land Headquarter’s Departments and procurement policies like the Supply Code of Conduct.

1.3 This Policy is applicable to CR Land and its major regions, business divisions, and specialized companies. All business partners, including partners, associated companies, contractors, and suppliers are encouraged to comply with this Policy.

2 Transparent Procurement

Carry forward the corporate culture of “Integrity First”and abide by the trade principle of “Openness, Justice and Fairness”, integrate the idea of transparent procurement into all links of the value chain, avoid being interrupted by any individual interest and do not take improper means such as malicious competition. Attach the Sunshine Declaration and Clean Cooperation Agreement to all tendering invitations, covering 100% of the contracts signed by partners, in order to jointly create a clean, efficient, and open atmosphere for cooperation.

3 Green Procurement

Embed green and low-carbon concepts in the front-end category research, supplier sourcing, pre-qualification assessment, and tendering and its selection of the supply chain management process, and strive to prioritize the use of green and healthy materials in the procurement procedure, in order to reduce adverse impacts on the environment and society. Where appropriate, priority should be given to the procurement of materials and products that meet the following conditions:

Reduce the use of raw materials in the production process;

Reduce the consumption of energy and water resources;

Reduce the impact on the environment during the entire product or service life cycle;

Increase the recycling and reuse of materials;

Ensure that materials are non-toxic and non-polluting to both humans and the environment.

4 Incorporate Social Responsibility Performance into Procurement Reference Indicators

In the management of the entire supply chain life cycle, include the respect and protection of human rights, health and safety, business ethics, and employee diversity into the scope of evaluation, take sustainable development into the consideration of supplier's performance evaluation, cooperate on a priority basis with suppliers stand out in social responsibility performance in procurement business, and promote the sustainable development of suppliers/subcontractors and subsuppliers.

5 Formulate and Promote the Supplier Code of Conduct

Formulate the Supplier Code of Conduct, convey requirements and expectations to suppliers in areas such as labor and human rights, health and safety, environment, business ethics, and sustainability, provide necessary training, promotion, and guidance to employees, suppliers, and other relevant parties. Suppliers must comply with all applicable laws and regulations in the countries/regions where they operate, and follow the relevant requirements in the Supplier Code of Conduct regarding ethics, labor and human rights, environmental protection, occupational health and safety, and other related aspects.