Climate Change Data

Environmental Metrics

ESG Focus Areas

• Green Finance
• Community Investment
• Sustainable Development
• Carbon Neutrality

Environmental Achievements

• Reduced emissions through green office practices, low-carbon data center operation, and low-carbon travel.
• Acted as lead underwriter or manager for 71 green corporate bonds (including asset securitization products) with a total issue size of RMB136.2 billion, ranking first in the industry.

Social Achievements

• Donated RMB12 million to flood-affected areas in Henan and Shanxi provinces.
• Made a charitable donation of up to RMB50 million and established the “CITIC Securities Charitable Foundation” with China Foundation for Poverty Alleviation.
• Ten years of continuous donations to upgrade middle schools in Guyuan County, Hebei Province, sponsoring over 2,700 students.
• Built a village-level kindergarten in Xainza County, Tibet.
• Invested nearly RMB10 million to build dormitory buildings and bathrooms for local schools in Jishishan County, Gansu Province.
• Made a cumulative contribution of RMB5.94 million to build two phases of photovoltaic power stations in Huichang County, Jiangxi Province.

Governance Achievements

• Rated AA in category A of the Chinese securities industry in the 2021 Classification and Evaluation of Securities Companies.

Climate Goals & Targets

Environmental Challenges

• Fluctuation in Chinese and international capital markets.
• Legal and compliance risks.
• Strategic risks.
• Internal operations and management risks.
• Market risk.
• Credit risk.
• Liquidity risk.
• Operational risk.
• Reputational risk.
• Currency exchange risk.

Mitigation Strategies

• Preventive measures through organizational structure, management system, and information technology.
• Optimization of business processes.
• Strengthening the management of credit risk and liquidity risk.
• Implementing various business continuity management measures (standby mechanism, remote home office, decentralizing seat density at disaster recovery sites).

Supply Chain Management

Responsible Procurement

• Green procurement practices prioritizing environmentally friendly products.

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• First batch of carbon-neutral green bonds
• First rural revitalization green bonds
• First batch of ESG global asset allocation index products

Awards & Recognition

• Numerous awards from various organizations (see section 1.8)

Environmental Metrics

ESG Focus Areas

• Sustainable Finance
• Climate Change
• Employee Development
• Robust Operation
• Building a Harmonious Society

Environmental Achievements

• CITIC Securities Beijing Headquarters Building achieved its target of using 30% clean energy by purchasing green power.
• 100% compliant disposal of hazardous waste.
• Promoted paperless office to save paper resources.
• Improved water management, monitored and managed water usage, and recycled part of water resources.

Social Achievements

• Released CITIC Securities Company Limited Human Resources Policy, and CITIC Securities Company Limited Whistleblowing and Whistleblower Protection Policy to refine the relevant policy system.
• Strengthened employee communication and carried out annual employee satisfaction survey.
• Created a unique Y-typed employee training system by integrating and optimizing the internal training system.
• Organized all female employees to watch themed videos to celebrate the International Women’s Day.

Governance Achievements

• Released the CITIC Securities Company Limited Environmental and Social Risk Management Framework and tightened risk management of key ESG factors.
• Released the CITIC Securities Company Limited Responsible Investment Statement, promoted ESG responsible investment strategy and application, ESG theme product innovation and practice.
• Released CITIC Securities Company Limited Anti-Commercial Bribery and Integrity Policy to standardize the Company’s integrity management.
• Released CITIC Securities Company Limited Supplier Code of Conduct to further standardize the management of suppliers.

Climate Goals & Targets

Environmental Challenges

• Acute physical risk from extreme weather events.
• Chronic physical risk from rising sea levels and increasingly extreme weather.
• Policy and regulatory risk from environmental and climate-related policies and regulations.
• Market risk from shifts in market preference due to low-carbon transitions.
• Reputation risk from failure to meet stakeholder expectations.
• Technology risk from the transition to low-emission technologies.

Mitigation Strategies

• Strengthen risk prevention measures against extreme climate disasters and conduct training on emergency rescue capabilities.
• Control climate risk in business activities.
• Combined with regulatory requirements, pay attention on the external environmental impact on enterprises during the process of production and operation, focus on the environmental risk score of the projects in areas with high environmental risk in due diligence, and strengthen credit risk management.
• Consistently reinforce the management in climate change, environmental and social risk, incorporate ESG into decision-making investment system, and precisely grasp the risks and opportunities under ESG scope.
• Actively promote and participate innovation in green finance, focus on industries related to clean energy, and use capital allocation to guide the transformation of industrial and energy structures into low- carbon structure.

Supply Chain Management

Supplier Audits: 1,213 suppliers (Chinese Mainland) and 36 suppliers (other)

Responsible Procurement

• Prioritize products certified for environmental protection (e.g., FSC)
• Require suppliers to have ISO 14001 environmental management system certification

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (typhoons, floods, storms)
• Rising sea levels
• Increasingly extreme weather

Transition Risks

• Policy and regulatory risk
• Market risk
• Technology risk

Opportunities

• Market opportunities from national "dual carbon" policies
• Opportunities to expand green finance businesses

Reporting Standards

Frameworks Used: Self-discipline Regulatory Guidelines for Listed Companies on the Shanghai Stock Exchange No. 1 - Standardized Operation, Environmental, Social and Governance Reporting Guide (ESG Reporting Guide) issued by the Hong Kong Stock Exchange Limited, Guidelines for Environmental Information Disclosure of Financial Institutions in Shenzhen

Certifications: ISO 27001

Third-party Assurance: PricewaterhouseCoopers Zhong Tian LLP (limited assurance on key environmental data)

Sustainable Products & Innovation

• ESG-themed investment products
• Green bonds
• Green asset-backed securities

Awards & Recognition

• Numerous awards listed in the report

Environmental Metrics

ESG Focus Areas

• Green operation
• Sustainable financing
• Responsible investment
• Climate change adaptation
• ESG risk management

Environmental Achievements

• Reduced carbon emissions through energy-saving measures (specific quantification not provided)
• Procurement of clean energy to reduce carbon emissions (specific quantification not provided)
• Initiatives to reduce paper usage (specific quantification not provided)

Social Achievements

• Not disclosed

Governance Achievements

• Improved corporate governance structure
• Implemented Measures for the Management of the Holdings in the Shares of CITIC Securities Company Limited by Directors, Supervisors and Senior Management and Relevant Changes

Climate Goals & Targets

Environmental Challenges

• Fluctuation in Chinese and international capital markets impacting operating results
• Legal and compliance risks
• Strategic risks from changes in domestic and overseas capital markets
• Internal operations and management risks
• Market risk from fluctuating market prices
• Credit risk from borrower defaults
• Liquidity risk
• Operational risk from internal process management failures
• Reputational risk
• Currency exchange risk

Mitigation Strategies

• Established overall risk management system
• Preventive measures through organizational structure, management system, mechanism, and information technology
• Optimization of business processes and risk control measures
• Improved risk appetite management
• Strengthened country risk management
• Risk investigations in subsidiaries
• Active risk management including special investigations for sudden market risk events
• Increased research on and resource contributions into compliance and risk control and information technology
• Exploration of financial technologies in risk management

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: IAS 34

Certifications: Null

Third-party Assurance: KPMG

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed