Climate Change Data

Zall Smart Commerce Group Ltd.

Climate Impact & Sustainability Data (2020, 2022, 2023)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:995 tCO2e/year (2020)
Scope 1 Emissions:270 tCO2e/year (2020)
Scope 2 Emissions:725 tCO2e/year (2020)
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:1,392,653 kWh/year (2020)
Water Consumption:13,611 m3/year (2020)
Waste Generated:Not disclosed
Carbon Intensity:1.15 tCO2e per employee (2020)

ESG Focus Areas

  • Climate Change
  • Supply Chain Risk Management
  • Compliance
  • Employee Health and Safety
  • Employment, Compensation and Benefits
  • Diversity, Equality and Non-discrimination
  • Anti-corruption
  • Customer Health and Safety
  • Product and Service Responsibility
  • Data Privacy Protection
  • Green Office

Environmental Achievements

  • Reduced greenhouse gas emissions from transportation energy and electricity consumption (Specific figures provided in the report, but not easily quantifiable without further calculation)
  • Implemented green office initiatives including paper saving, electricity saving, and waste reduction

Social Achievements

  • Zero work-related injuries or deaths for three consecutive years (2018, 2019, and 2020)
  • Provided diverse training courses for employees, including online and offline options
  • Maintained a fair and diverse workforce with no discrimination
  • Actively participated in the fight against COVID-19, providing medical supplies and establishing modular hospitals
  • Donated RMB1 million to support community investment programs focusing on poverty alleviation, education assistance, environmental protection, and cultural and sports development

Governance Achievements

  • Established a legal risk prevention mechanism and a legal risk accountability system
  • Implemented anti-corruption training for directors and employees
  • Set up a whistleblowing hotline and email for reporting illegal and rule-breaking incidents
  • Conducted regular and special inspections on various aspects of business operations to ensure compliance

Climate Goals & Targets

Environmental Challenges

  • Climate change impacts on logistics efficiency and operational bases in coastal areas
  • Supply chain disruptions due to the COVID-19 pandemic
Mitigation Strategies
  • Formulated logistics guidance for severe weather conditions and established a communication network with the logistics team
  • Provided early warnings and reduced employee travel in severe weather
  • Closely monitored market price changes and margin ratios to ensure contract performance during the pandemic
  • Offered grace periods to customers with good trading records
  • Flexibly managed supply chains and communicated with business partners to minimize pandemic impact

Supply Chain Management

Supplier Audits: Yearly risk assessment and control measures implemented

Responsible Procurement
  • Supplier evaluation and selection based on product quality, business performance, and compliance with Group policies
  • Clear contract provisions to protect the Group's interests
  • Regular quality inspections of incoming goods
  • Continuous monitoring of supplier performance
  • Risk assessment and mitigation measures

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather affecting logistics efficiency
  • Severe weather impacting operational bases in coastal areas

Reporting Standards

Frameworks Used: ESG Guide in Appendix 27 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

Certifications: ISO9001 (Shenzhen Sinoagri)

Third-party Assurance: Not disclosed

Awards & Recognition

  • Shortlisted in the “List of the First Batch of Digital Commerce Enterprises with Online and Offline Integration Development”
  • Honorary title of “Enterprises with Outstanding Contribution to Market Supply Guarantee in Epidemic Prevention and Control”
  • Numerous other awards and recognitions for subsidiaries

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:1114 tCO2e/year
Scope 1 Emissions:602 tCO2e/year
Scope 2 Emissions:512 tCO2e/year
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:3089 MWh/year
Water Consumption:6158 m3/year
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Environmental Protection
  • Supply Chain Management
  • Employee Well-being
  • Anti-corruption
  • Community Investment

Environmental Achievements

  • Formulated a 7S Management System for resource conservation and waste reduction.
  • Implemented measures to reduce electricity and paper consumption in offices.
  • Reduced nitrogen oxides, sulfur dioxide, and particulate matter emissions.
  • Reduced sewage emissions.

Social Achievements

  • Offered industry-competitive remuneration packages and performance-oriented rewards.
  • Maintained a fair and diverse workforce, free from discrimination.
  • Provided various staff activities to enhance team building and employee well-being.
  • Implemented a comprehensive health and safety policy with zero work-related injuries or deaths for 3 consecutive years.
  • Provided diverse training courses for employees, including online and offline options.
  • Implemented measures to prevent child and forced labor in the supply chain.

Governance Achievements

  • Established an inter-departmental risk management committee.
  • Set up an independent legal compliance department.
  • Implemented a robust anti-corruption system with anti-corruption training for directors and employees.
  • Established a whistleblowing policy.

Climate Goals & Targets

Long-term Goals:
  • Achieve operational carbon neutrality by 2050.
Medium-term Goals:
  • Ensure greenhouse gas emissions meet increasingly stringent regulatory requirements by 2030.
Short-term Goals:
  • Reduce all emissions, energy use, and resource consumption by 3% before 2026.

Environmental Challenges

  • Climate change-related risks, including extreme weather impacting logistics and assets.
  • Transition risks related to low-carbon economy policies and regulations.
  • Potential supply chain disruptions due to the COVID-19 pandemic.
Mitigation Strategies
  • Formulated logistics guidance for severe weather conditions.
  • Implemented preventive and contingency measures for extreme weather events.
  • Developed a “multi-bank, multi-product” matrix of supply chain services to support SMEs.
  • Applied a digital smart supply chain system to avoid COVID-19 lockdown areas.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Supplier evaluation and access mechanisms.
  • Requirement for environmental licenses and quality certificates.
  • Promotion of environmentally preferable products and services.

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather impacting logistics efficiency and assets.
Transition Risks
  • Implementing policies for low-carbon operations.
  • Changes in supply and demand for goods and services.
  • Potential new regulations and policies.
  • Increased operating costs from new technologies.
Opportunities
  • Development of energy-efficient products and services.
  • New technologies to improve operational and energy efficiency.
  • Market transition to a low-carbon economy.

Reporting Standards

Frameworks Used: ESG Guide in Appendix 27 to the Rules Governing the Listing of Securities on the Main Board of The Stock Exchange of Hong Kong Limited

Certifications: ISO9001 (Shenzhen Sinoagri)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Best New Economy Company
  • Forbes Global 2000
  • Fortune China Top 500
  • National Supply Chain Innovation and Application Demonstration Enterprise
  • and many others (see report for full list)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:584 tonne (CO2e)
Scope 1 Emissions:86 tonne (CO2e)
Scope 2 Emissions:498 tonne (CO2e)
Total Energy Consumption:972,000 kWh
Water Consumption:6,161 m3
Waste Generated:10.55 tonnes (hazardous and non-hazardous combined)
Carbon Intensity:0.55 tonne (CO2e)/employee

ESG Focus Areas

  • Environmental Protection
  • Supply Chain Management
  • Employee Well-being
  • Anti-corruption
  • Community Investment
  • Climate Change

Environmental Achievements

  • Obtained GB/T 24001-2016/ISO 14001:2015 environmental management system certification.
  • Launched green trading service “Zall Zero Carbon”, collaborating with EC Digital.
  • Implemented 7S Management System for resource conservation.
  • Implemented Energy and Resource Management System and Office Civility Convention to reduce resource consumption.

Social Achievements

  • Implemented performance-oriented rewards and internal equity system.
  • Organized various staff activities to enhance team building and employee well-being.
  • Formulated Management Measures for Recruitment ensuring equal opportunities.
  • Established a comprehensive health and safety policy and obtained GB/T 45001-2020/ISO 45001:2018 occupational health and safety management system certification.
  • Provided diverse training courses and achieved high employee training participation rates.
  • Implemented measures to prevent child and forced labor.
  • Established a systematic framework for quality management and obtained GB/T 19001-2016/ISO 9001:2015 quality management system certification.

Governance Achievements

  • Established an inter-departmental risk management committee.
  • Set up an independent legal compliance department.
  • Formulated Anti-Fraud System and Anti-Fraud and Anti-Corruption Policy.
  • Organized inter-department anti-corruption training for directors and employees.
  • Established a Whistleblowing Policy.

Climate Goals & Targets

Long-term Goals:
  • Achieve operational carbon neutrality by 2050.
Medium-term Goals:
  • Ensure that the Group’s greenhouse gas emissions meet the increasingly stringent regulatory requirements of local governments in or before 2030.
Short-term Goals:
  • Reduce all emissions, energy use, and resource consumption by 3% before 2026 compared with figures of 2022.

Environmental Challenges

  • Extreme weather incidents affecting logistics efficiency.
  • Potential new regulations and policies related to climate change.
  • Market transition to a low-carbon economy.
  • Supply chain disruptions due to extreme weather.
Mitigation Strategies
  • Formulated logistics guidance for severe weather conditions.
  • Implemented preventive and contingency measures for severe weather.
  • Implemented emission reduction measures to reduce electricity consumption.
  • Developed alternative sourcing strategies (implied).

Supply Chain Management

Responsible Procurement
  • Supplier evaluation and review system.
  • Requirement for suppliers to furnish relevant environmental licenses and quality certificates.
  • Green procurement practices.

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather incidents affecting logistics efficiency.
  • Severe weather conditions affecting operating bases in coastal areas.
Transition Risks
  • Implementing policies for low-carbon operations.
  • Changes in supply and demand for certain goods.
  • Potential new regulations and policies.
  • Development and use of emerging technologies increasing operating costs.
Opportunities
  • Acquiring skills and capabilities for implementing climate strategies.
  • Development of new products and services to help communities reduce carbon emissions.
  • New technologies to improve operational and energy efficiency.
  • Market transition to a low-carbon economy.

Reporting Standards

Frameworks Used: ESG Guide in Appendix C2 to the Rules Governing the Listing of Securities on the Main Board on The Stock Exchange of Hong Kong Limited

Sustainable Products & Innovation

  • Zall Zero Carbon green trading service.
  • eCOAL consulting service for carbon rights operations.

Awards & Recognition

  • 2023 KiloPeaks Award — Digital Supply Chain
  • 2023 China Brand Value Evaluation — Enterprises in Other Service Fields
  • National E-Commerce Demonstration Enterprise
  • and many others listed in the report