LANDSEA Ranks No. 1 in Real Estate Industry in Green Supply Chain CITI Index 2017


When the fourth annual report of green supply chain CITI index was released on October 13, 2017, Landsea Green Real Estate ranks No. 1 in the index in real estate industry.

CITI is the world’s first quantification system that evaluates the supply-chain performance of brands, which have operations in China, in environmental management. Jointly developed by the Institute of Public and Environmental Affairs, IPE and Natural Resources Defense Council, NRDC, CITI makes dynamic evaluation by using the public data obtained from government supervision, online monitoring and corporate disclosure.

Real estate industry included in CITI for the first time

The newly-published CITI index involved 14 sectors, namely, IT, textile, leather, food & beverage, beer, daily-used chemicals, paper, automobile, dairy products, bicycle sharing, chemicals, pharmacy and real estate, covering 267 brands from Greater China, Europe, USA, Japan and Korea that make purchases in China.

▲IPE President Mr. Ma Jun was releasing the report

According to IPE President Mr. Ma Jun, till today, 59 brands have passed the green purchase and 1,004 suppliers have reformed their violations or disclosed their emission data. Since the Green Selecting Supply China Program was kicked off in March 2007, the brands have pushed 4,270 suppliers in total.

The Top 30 brands in the newly-published CITI index: Apple, Dell, Levi’s, Esquel, Adidas, M&S, Foxconn, GAP, Samsung, Puma, H2M, Walmart, ZARA, HUAWEI and Landsea, etc. All those in Top 10 come from IT and textile, revealing these two sectors are taking leading position in supply-chain environmental management in China.

As the sole company newly-included in the CITI Index list, Landsea ranks No. 1 among all real estate companies.

Real estate companies take the lead to push forward green supply chain

Data reveal that, among the many pollutant sources, the most prominent are emissions by industrial enterprises. 0.8 tons of carbon dioxide will be emitted by building each 1m2 structures. The carbon emissions in the entire construction industry take almost 40% of total carbon emission in China. Real estate industry has great influence on upstream suppliers, in particular the high-energy-consuming industrial enterprises.

Landsea Green Real Estate has always been adhering to green development, setting an example for the industry. It is the active participant, advocate, driving force and responsible pacesetter of green campaigns in China’s real estate industry.

▲Tian Ming, Chairman of Landsea Group was sharing cases of green supply chain

In June 2016, Landsea, Vanke, SEE Foundation, China Urban Realty Association and China Real Estate Chamber of Commerce jointly initiated the Real Estate Green Supply Chain Campaign, calling upon real estate developers to engage in green purchase to influence upstream suppliers and integrate forces in the industry to promote sustainable development.

After making one-year effort, the Real Estate Green Supply Chain Campaign has expanded from 48 to 89 enterprises, whose total sales volume reached about 1.9 trillion RMB in 2016, expecting to account for 17% of total market size of real estate industry in China.

The newly-published CITI Index reveals real estate brands focus more on environmental loads when producing steel, cement, glass, paint and other highly-polluting products. Landsea Green Real Estate has extended the supply-chain environmental management to the steel, cement and glass in the upstream while successfully pushing the violating suppliers to publicly explain the supervision records and make independent third-party auditing.

Landsea ranks No. 1 in real estate industry in CITI Index

It is known that CITI Index evaluates five aspects, namely, transparency and communications, compliance and rectifications, extended green supply chain, energy efficiency and emission reduction, and responsibility disclosure, in a progressive way. In the evaluation process, Landsea made prominent performance in extended green supply chain, thus getting listed in the Top 30.

According to Mr. Tian Ming, the Chairman of Landsea Group, in the past year, Landsea traced the compliance environment of its upstream suppliers including 69 steel manufacturers, 79 cement manufacturers, 2 glass producers and 5 paint producers. This is the internal notice issued within Landsea Group, requiring all projects should add environment retrieval when testing the supplies while regulating the duties of engineers, supervisors and third-party organs. At the same time, we are also actively pushing our strategic partners to execute it together with us. Till today, 9 enterprises, thanks to the push made by Landsea, have made active responses and rectifications.

In terms of timber purchase, Landsea calls upon real estate developers to purchase timber from forests in legal operations, and requires the floor suppliers to gradually establish and improve the system to trace sources of timber so as to realize sustainability of forest resources and bio-diversity. 

As far as formaldehyde control in timber products, Landsea has established the strict source control standard. China ranks the top in terms of output and consumption of formaldehyde. WHO has defined formaldehyde as the carcinogen, whose releasing cycle lasts 3 to 15 years. At present, decoration materials in China differ in quality, lacking effective supervision and management. The use of poor-quality decoration materials will directly result in domestic air pollution. In this regard, Landsea has offered its own research results and solutions. It is also the first enterprise in China that proposes the formaldehyde control standard in products.

Besides, Landsea is also making progress in pushing forward chromate-free deactivation of aluminum alloy, HBDC control of polystyrene products, and new green purchase plans. "We are confident that professional and consistent efforts will bring positive changes", said Chairman Tian Ming.

In the future, Landsea will, targeting at zero pollution along the value chain, improve its management and technologies while fulfilling its CSR. At the same time, it will publicize the operation data to facilitate environment compliance of its suppliers, thus pushing forward development of green supply chain and identifying innovation models of green supply chain.