Energy Usage and Conservation
Kedge Construction consistently advances energy-saving and carbon-reduction initiatives. In July 2025, our corporate headquarters relocated to the newly completed Minquan Building, a facility certified with a Level 1 Building Energy Efficiency Rating (BERS). The building features a rooftop solar power system with an installed capacity of 19.8 kW, and green electricity is being phased into common areas, supporting our target of transitioning the corporate headquarters to 100% renewable energy by 2030. Regarding energy management, the headquarters office is projected to reduce unit electricity consumption by approximately 50% compared to conventional offices through the integration of high-efficiency equipment and energy management systems (EMS). To sustain our commitment to decarbonization, Kedge Construction aims to decrease its energy intensity by 1% annually, supported by the following specific policies:
Energy Policy
Energy Management Plan
The primary energy-saving measures implemented at our corporate headquarters (including the Heping and Minquan Buildings) and construction sites in 2025 are outlined below:
Energy Management
In 2025, the electricity intensity per unit area at our corporate headquarters (including subsidiaries) was 85.33 kWh/m², representing a 6.8% reduction from 91.56 kWh/m² in 2024, and a 13.3% decrease from the 2022 baseline of 98.42 kWh/m². Evaluated on a consistent basis, our electricity efficiency has steadily optimized year-on-year, with a clear downward trend in energy intensity per unit area, demonstrating significant progress in energy efficiency compared to the baseline year.
Simultaneously, the electricity intensity per unit of revenue across all domestic construction sites (including subsidiaries) in 2025 decreased substantially compared to the baseline year. Although the acquisition of several high-tech factory construction projects―which require higher power loads―led to an increase in absolute electricity consumption, our energy intensity measured per unit of revenue still decreased by 14.01% relative to the 2022 baseline year. Despite business growth and fluctuations in project portfolios, our overall energy efficiency continues to improve.
Energy-Saving & Carbon-Reduction Training
Kedge Construction hosts two annual training sessions on GHG inventory and reduction management for our site personnel. The curriculum encompasses the company’s decarbonization strategies, energy efficiency measures, regulatory compliance, and practical guidance on GHG accounting. Through systematic training and awareness campaigns, we ensure our site teams fully grasp Kedge’s carbon reduction and energy- saving targets, translating these principles into daily site operations and project management.
Water Resources Management
Kedge Construction actively implements water mitigation measures, including installing water-efficient fixtures and rainwater harvesting systems at our headquarters and site offices, conducting employee water-conservation campaigns, and performing routine maintenance on water infrastructure to enhance water-use efficiency and prevent waste. Our short-term target is to reduce per capita water intensity by 1% annually through 2030. The water-saving measures implemented by our company in 2025 include: installing water-saving toilets and sensor-activated faucets throughout our corporate headquarters, alongside a rainwater harvesting and greywater recycling system. At our construction sites, water consumption was reduced by optimizing engineering methods (such as adopting precast construction), maximizing the use of alternative water sources, and reclaiming pumped groundwater for vehicle washing and dust-suppression spraying.
Following the relocation of our corporate headquarters to the Minquan Building in July 2025, we tracked the headquarters’ water consumption separately for the first and second halves of the year. The annual per capita water consumption was 9.35 m³, representing an increase from 2024. This variance was primarily because water usage in the new building is currently allocated by the building management committee based on leased floor area rather than independent meters. Additionally, the post-relocation commissioning and full-load testing of the HVAC cooling towers led to a temporary spike in cooling water consumption. At our construction sites, water consumption is primarily split between domestic use for site personnel (100% sourced from municipal tap water) and vehicle washing (utilizing rainwater harvesting or reclaimed groundwater). Due to an expansion in construction activities in 2025, our absolute water consumption increased. However, when measured by water intensity, our 2025 performance was 6.74 m³/million revenue, representing a 12% reduction compared to 7.66 m³/million revenue in the previous year. This demonstrates a steady, ongoing decline in our overall water intensity. Considering water resource stress within engineering project locations, Water Risk Atlas analysis of local water resource pressure across various construction sites indicates low-to-medium water stress levels, excluding classification as water-stressed regions. There are five pressure levels (Low, Low-Medium, Medium-High, High, Very High) as per the Water Risk Atlas .
Additionally, a query of the Reservoir Catchment Area and Drinking Water Quality and Quantity Protection Area system confirmed that none of the company’s construction sites are located within drinking water quality and quantity protection areas or groundwater control areas.
Waste Management
mplementation in 2025 was as follows: Waste generated across our construction sites is categorized into three primary types: construction waste, domestic waste, and surplus soil and gravel. Kedge Construction exclusively contracts licensed, legally compliant vendors to handle all haulage and disposal operations to prevent any illicit dumping. All transfer manifests and disposal records are strictly preserved as verification evidence to facilitate the annual tracking and management of total waste disposal volumes.
Construction Waste: Handled by legally compliant construction waste removal and treatment contractors, using methods such as stabilized landfill, sanitary landfill, and resource recycling for intermediate treatment. In 2025, the removal and disposal volume reached 18,585 metric tons, representing an increase over the previous year. This growth was primarily driven by the acquisition of several high-tech factory projects, which progressed at a faster pace than conventional construction developments, thereby increasing the total volume of waste generated throughout the year.
Household Waste: Handled by legally compliant domestic waste collection contractors, using methods such as resource recycling or reuse and incineration for intermediate treatment. The removal and disposal volume for 2025 was 554 metric tons, a 1% decrease compared to the prior year. This reduction was chiefly achieved through the diligent enforcement of waste sorting at both our headquarters and construction sites, successfully separating recyclable materials from non-recyclable waste to minimize general refuse output.
Earth and Stone Excavation and Removal: Prioritize balancing earthwork within the construction area without external transportation or exchanging usage between sites. For earthwork that is difficult to recycle and reuse, it is transported to legally established waste treatment plants or earth and stone resource storage yards as per building management unit regulations. In 2025, the removal and disposal volume was 245,021 metric tons, representing a 74% decrease compared to 2024. This significant reduction was primarily due to the fact that most of our newly initiated construction sites were located within science parks, where earthwork operations utilized on-site soil balancing instead of off-site hauling, leading to a substantial drop in disposal volumes.
The table below summarizes the domestic waste, surplus construction earth and rock, and construction waste generated by the company’s headquarters and nationwide construction sites in 2025.
Promotion of Circular Economy
Kedge Construction fully recognizes that the construction industry plays an indispensable role in the government’s circular economy blueprint. Since undertaking the Banqiao District Fuzhong Section Urban Renewal Project in 2024, the company has completed its first initiative to carefully separate waste bricks and concrete blocks from other construction waste during demolition. These materials were processed by a recycling plant into Recycled Concrete (Lei-Sai-Ke Concrete) for use in temporary works. We successfully leveraged this project to analyze construction procedures, material properties, and environmental benefits―proving that minimizing waste and maximizing resource recovery can achieve a true circular economy and put “cradle-to-cradle” circular thinking into practice. To consistently promote the reuse of surplus construction soil and gravel back into construction sites, we have set a target to recover and reuse at least 90% of Class B5 surplus construction soil and gravel during the demolition phase, a mandate we are extending to all urban renewal construction sites.
For instance, in a bank headquarters urban renewal project in 2025, we estimate declaring the recovery of 12,151 cubic meters of Class B5 soil and gravel. This will be processed into 22,950 cubic meters of Recycled Fine Aggregate Concrete, which will then be utilized on-site for diaphragm wall guide trench pavements, lean concrete (PC) layers, sedimentation tanks, and vehicle washing platforms. This closed-loop approach ensures construction materials are continuously cycled back into the construction ecosystem.
The table below summarizes waste generated by the headquarters and construction sites in 2025.
