Green Supply Chain of Real Estate Industry

Company Introduction

Since 2004, Landsea has been implementing the development strategy of focusing on green product differentiation, practicing the values of "people-oriented, sunny and green" and leading green life with green thinking. Landsea's green strategy has never changed, but we advocate that green must be sustainable. Landsea actively responds to national requirements, continues to explore the application of the Green Building Evaluation Standard GB/T50378-2019, and strictly controls the environmental management of the full life cycle of buildings from design to operation.

Application Case Introduction

1) Practices and cases of green procurement categories 

Since June 5, 2016, when Landsea launched the "Green Supply Chain Initiative for China's Real Estate Industry" together with SEE, China Urban Realty Association (CURA), China Real Estate Chamber of Commerce (CRECC) and Vanke, we have so far developed 13 green procurement standards jointly with technical supporters in the industry: environmental compliance for supply chain companies, chrome-free passivation of aluminum alloys, legalization of wood sources, formaldehyde control of interior decorative panels and their products, harmfulness control of HBCD flame retardants for thermal insulation materials, control of APEO for waterborne coatings, clean production of stone products, energy saving of doors and windows, health and environmental control of LED light sources, chromium-free passivation of light steel keel, quality and environmental control of rock wool, quality and environmental control of air source heat pumps, wall and floor materials of stone wood polymer (SPC). Landsea always follows and promotes green supply chain management, insists on the policy of "no green, no procurement", requires environmental compliance from supply chain enterprises of centralized procurement categories in such four aspects as resources, energy, environment and others, and implements green procurement standards in aluminum alloy profiles, flooring, cabinets, external insulation, coating, doors and windows, lamps and lanterns, SPC flooring and other categories in combination with the centralized procurement categories. In 2019, Landsea issued the "Wood Products Procurement Pledge", and firmly refrained from purchasing wood from high-conservation-value forests, endangered species, natural-to-artificial wood, etc., in order to minimize the environmental impact of the wood products we use.

2) Introduction to the training on the enterprise’s own green supply chain and green development

- Inviting experts from IPE to conduct environmental compliance training for Landsea's supply chain line;

- Inviting experts from the Building Energy Conservation Association to train Landsea on APEO control of waterborne coating and health and environmental control of LED light sources;

- Inviting experts from the Forestry Association to train on new wall and flooring materials of stone wood polymer;

- Organizing training on aldehyde scavenging to promote the prevention and control of decoration pollutants;

- Offering in-house training to promote Landsea' policy on implementing the Green Chain Program;

- Inviting the Center for Public Environmental Research to train on CITI Corporate Green Supply Chain Index;

- Inviting the Center for Public Environmental Research to train on the CATI Corporate Climate Action Index;

- Inviting Green List manufacturing companies to share the full-cycle low-carbon development of green building materials.

- Inviting Beijing Entrepreneurs Environmental Protection Foundation to train on SEE Public Welfare Environmental Action;

3) Introduction to the enterprise’s own green development correction  

For environmental violations by suppliers, Landsea requires suppliers to submit public statements to the "Blue Map" website and take timely corrective measures. As of October 2022, we had used the "Blue Map" to follow 214 companies, 143 of which were environmentally compliant; we had encouraged 71 companies with environmental violations to make continuous correction, 31 of which had withdrawn their records through correction, 9 of which had been publicly disclosed; and we had blacklisted companies which had not corrected their environmental violations, and had prohibited them from cooperating with us.

4) Introduction to the enterprise’s encouraging suppliers to make correction in such areas as environmental compliance  

- A supplier registers with "Blue Map" and chooses Landsea as the "Promoter Brand". After Landsea follows the supplier, if the supplier has environmental violations, "Blue Map" will inform the supplier by email;

- Once Landsea receives the email about the environmental violation from a company, it will send a formal letter to inform the company of the environmental violation and the path to solve it;

- The company will contact IPE for public explanation or correction according to the letter from Landsea, so as to withdraw the environmental violation record;

5) Introduction to the enterprise’s promoting the industry to jointly practice green chain and green development concept 

Through "green procurement", we drive upstream suppliers to reduce the negative impact on the environment, improve resource efficiency, realize the green upgrade of the industrial chain, and provide green, healthy and environmentally-friendly products to end consumers in all aspects including raw material extraction, production and processing, and end consumption.

As the rotating director of the 6th CURA Joint Procurement, Landsea joined hands with 37 real estate enterprises in the 12th batch of joint procurement to encourage 363 suppliers in the real estate and construction industry to follow their environmental performance through the Blue Eco-chain, and encourage 26 enterprises to publicly explain their past environmental problems and correction measures to the society. We finally achieved 100% environmental compliance for 37 finalists in the procurement categories, of which 100% of the bid-winners in the green procurement categories were white-listed companies and 80% were green-listed companies.

6) Introduction to the enterprise’s promoting the improvement of production and environmental technology among supply chain enterprises 

- Encouraging wallpaper factories to make a description of wastewater and exhaust gas supervision records, strengthen the supervision of production lines and eliminate energy-consuming equipment.

- Encouraging aluminum profile manufacturers to phase out chromic production lines and use chromium-free production lines instead, so as to reduce the discharge and treatment of wastewater containing chromium.

- Promoting the clean production enhancement of FIRST New Material Technology Development Co. Ltd.;

- Encouraging Guangdong DPV Coatings Co., Ltd. to take the initiative to disclose carbon emission data;

- Encouraging ELETILE Home Technology Co., Ltd. to take the initiative to disclose carbon emission data.

7) Introduction to the enterprise’s promoting sustainable development of resources

- Encouraging the flooring companies with the intent of cooperation to implement the standard of "legalization of wood sources"; requiring flooring companies to trace the source of wood used, and each cooperating flooring company to provide the diagram and source information of the upstream wood supply chain, such as the contract, invoice, forest harvesting certificate, etc. of the upstream supply chain;

- We have set up a green supply chain platform within Landsea and implemented labeling management for suppliers, which is combined with the 13 green procurement categories promoted by the "Green Supply Chain Initiative for China’s Real Estate Industry". Priority will be given to suppliers with green certification labels for being shortlisted and winning bids. We have also encouraged other companies to optimize their own supply chains and meet green certification standards.

8) Introduction to the enterprise’s supply of healthy residential products 

In the full life cycle development of green projects, Landsea tries to achieve the coordination of economy, society and environment to create energy-saving, environmentally-friendly, intelligent, healthy, comfortable and humanistic products. By combining environmental and humanistic factors with the traditional meaning of "good" in housing, we endeavor to create healthy, comfortable and low-carbon houses through green building technology, which is exactly the embodiment of Landsea' green differentiated product strategy. Through passive building design, Landsea applies the natural principles of sunlight, wind, temperature and humidity, minimizes the reliance on conventional energy, improves and creates a comfortable living environment by means of planning, design and environmental configuration, and explores the best solution for modern houses that balances energy efficiency and comfort. Passive-designed buildings cannot do without green, energy-efficient equipment. Landsea uses renewable energy-based equipment to minimize greenhouse gas emissions and enhance residential comfort. The comfort of Landsea’s technological houses comes from the control of every detail of the indoor environment. Landsea relies on green technology to create a healthy indoor environment with constant temperature, humidity and oxygen, and cleverly plans the indoor flower and green-plant areas to add green attributes to the houses from every drop.

Comprehensive benefit analysis of the project

Economic benefits: Landsea has continued to build technological houses for many years, reducing equipment and energy consumption by enhancing various properties of the maintenance structure, and reasonably improving energy efficiency in addition to meeting the same indoor comfort conditions. By continuing to build a green supply chain system and proposing green product standards to upstream supply chain enterprises, we advocate "no green, no procurement" to promote the sustainable and healthy development of the industry and optimize and reasonably reduce procurement costs.

Social benefits: Since the launch of the Green Supply Chain Initiative in the real estate industry in 2016, more than 100 real estate enterprises have joined it. Several institutions and organizations, such as WWF, the ASEAN Center of the Ministry of Ecology and Environmental Protection, China Association of Building Energy Efficiency, and Institute of Public and Environmental Affairs (IPE), have also provided new boosts to the Green Chain Initiative. As of October 2022, a total of 3,874 companies had joined the white list of environmental compliance. Landsea has joined hands with more than fifty real estate enterprises to insist on green procurement through the platform of CURA Joint Procurement, so as to green the upstream and downstream industrial chains from the source of raw material extraction, production process and end consumption, and take up its responsibility for social development and environmental protection. Twelve consecutive batches of joint procurement have so far been organized, with a cumulative procurement amount of about RMB 50 billion.

Environmental benefits: Under the continuous promotion of Green Chain Action, more and more supply chain enterprises are aware of the issue of environmental friendliness, and make strict deletion and selection from the source of raw materials, take corrective measures in the production process, make reasonable allocation in the transportation and storage process, so as to meet environmental compliance requirements. On the other hand, according to the green procurement technology standards of the green categories strictly selected by the Green Chain Action Committee, we integrate the needs of many real estate enterprises, and, through the joint force, encourage the supply chain enterprises for equipment upgrade, process formula improvement, etc., and gradually solve the environmental health problems from the production side to the user side. In 2022, we have encouraged 363 suppliers in the real estate and construction industry to follow their environmental performance through the Blue Eco-chain, and encouraged 26 companies to publicly explain their past environmental problems and corrective measures to the society.