Climate Change Data

Yangzijiang Financial Holding Ltd.

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:81.17 tCO2e
Scope 1 Emissions:NA
Scope 2 Emissions:68.44 tCO2e
Scope 3 Emissions:12.73 tCO2e
Renewable Energy Share:Not disclosed
Total Energy Consumption:120,000 kWh
Water Consumption:1,172 m3
Waste Generated:Not disclosed
Carbon Intensity:0.265 per S$1 million of total income

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Reduced carbon emissions by focusing on digitalization and minimizing air travel; Reduced paper usage through double-sided printing and digitalization; Recycled printer cartridges and coffee capsules.

Social Achievements

  • Launched a graduate trainee program and internship program in Singapore; Provided annual medical insurance and health screenings to all employees; Offered 158 days of paid maternity leave for female employees in PRC and 16 weeks in Singapore, and 15/2 days of paid paternity leave in PRC/Singapore respectively; Complied with local pension schemes in PRC and CPF scheme in Singapore; Supported employees in attending industry events related to ESG; Participated in SGX Cares Bull Charge Charity Run, donating S$5,000.

Governance Achievements

  • Established a strong ethical culture with a code of business conduct covering insider trading, staff dealing, major transactions, conflict of interest, whistleblowing, confidential information, and personal data protection; Established three committees: Audit and Risk, Remuneration, and Nominating; Complied with the Code of Corporate Governance 2018; Joined SGListCos association.

Climate Goals & Targets

Long-term Goals:
  • Contribute towards achieving a net-zero carbon world; Become a more responsible investment manager who looks out for the sustainability efforts of its portfolio companies.
Medium-term Goals:
  • Improve the scope of tracking and influence with regards to indirect sources of climate impact from portfolio companies; Develop a funding scheme for employees to attend external ESG training; Create more flexible and inclusive policies to improve gender diversity; Seek out partnerships with organisations that promote diversity and inclusivity.
Short-term Goals:
  • Form a dedicated sustainability committee in 2H 2023; Implement a sustainability framework by the end of 2023; Integrate ESG investing across the board in the coming years; Adopt TCFD recommendations in 2023; Switch to LED lighting to decrease energy consumption.

Environmental Challenges

  • Increase in non-performing loans in 2H2022 due to the sluggish Chinese property market; The seeming lack of progress at COP27 on climate finance and global decarbonization; Geopolitical tensions and the Russia-Ukraine crisis causing many countries to expand fossil fuel reserves.
Mitigation Strategies
  • Increased expected credit losses for a larger number of loan investments; Intends to set up a dedicated sustainability committee in 2H 2023 to implement a sustainability framework by the end of 2023 and integrate ESG investing; Will prepare and adopt TCFD recommendations in 2023; Actively managing its debt portfolio and regularly reviewing the adequacy of its provisions; Intends to work with investee companies to improve their ESG metrics.

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: GRI Standards, SGX-ST Listing Rules 711A and 711B, Practice Note 7.6

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:133.0 tCO2e/year
Scope 1 Emissions:n.a.
Scope 2 Emissions:87.4 tCO2e/year
Scope 3 Emissions:45.6 tCO2e/year
Renewable Energy Share:Not disclosed
Total Energy Consumption:158,160 kWh/year
Water Consumption:1,168 m3/year
Waste Generated:281.6 kg/year
Carbon Intensity:0.004 tCO2/sqft

ESG Focus Areas

  • Climate Risk Management
  • Management of Carbon Footprint
  • Talent Management
  • Diversity & Equal Opportunities
  • Employee Well-being and Occupational Health & Safety
  • Anti-corruption
  • Data Privacy

Environmental Achievements

  • Maintained Scope 2 intensity at 0.004 tCO2 per sq ft
  • Reduced water consumption in PRC office to 1,168m3 from 1,172m3 in FY2022
  • Maintained zero incidents of OHS

Social Achievements

  • 38% female employees
  • Average of 3 hours of external training per Investment Team employee
  • 6 hours of internal training on climate change management and reporting
  • Zero incidents of occupational health and safety
  • 100% return to work rate for employees who took parental leave
  • Community investment of S$10,000

Governance Achievements

  • Established Sustainability Committee
  • Zero cases of data privacy breach
  • Zero cases of bribery and corruption

Climate Goals & Targets

Long-term Goals:
  • Achieve net zero Scope 2 GHG emissions by 2050
Medium-term Goals:
  • Expand ESG integration to the wider portfolio
  • Expand external training programme to other business functions
  • Achieve net zero Scope 2 GHG emissions by 2050
Short-term Goals:
  • Maintain similar Scope 2 intensity
  • Maintain minimum number of external training hours per eligible employee and 6 hours of internal training opportunities
  • Maintain fair hiring policy
  • Keep incidents of OHS at zero
  • Keep turnover rate around 2023’s level
  • Keep incidents of bribery or other compliance breach at zero
  • Keep incidents of confidential information leakage at zero

Environmental Challenges

  • Slower global growth, high-interest rates and severe inflationary pressures
  • Challenges in China's domestic property market (significant debt and financing issues among developers, overall demand slowdown)
  • Elevated non-performing loan ratio of 42.8% as of end-2023
Mitigation Strategies
  • Portfolio repositioning to allocate 50% of debt investments outside China (achieved ahead of schedule)
  • Established a dedicated team to resolve non-performing loans (NPLs), aiming for a third reduction by end of 2024 and total resolution within 3 years
  • Conservative loan strategy ensuring over-collateralisation with sufficient buffer for asset deterioration
  • Active cash management to maximize returns and deploy excess cash into fund management businesses
  • Strengthened balance sheet with increased NAV per share

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Not disclosed

Climate-Related Risks & Opportunities

Physical Risks
  • Increased incidents and severity of extreme weather events
Transition Risks
  • Stricter reporting regulations
  • Increased compliance costs for portfolio companies
  • Shifts in shareholder and investor preferences
  • Negative stakeholder perception due to non-ESG-friendly investment activities
  • Increased threat from competitors with superior climate-related technology
Opportunities
  • Launch climate-themed products and funds
  • Increased exposure to climate-related investments

Reporting Standards

Frameworks Used: SGX Core ESG Metrics, GRI Standards 2021, TCFD Recommendations

Certifications: Null

Third-party Assurance: Internal data monitoring and verification

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed