Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Reduced greenhouse gas emissions from 55.05 tons CO2e to 46.62 tons CO2e
• Reduced total domestic garbage from office operation from 5.9 tons to 6.7 tons

Social Achievements

• Implemented a complete training and promotion system and fair and just performance appraisal methods
• Paid five insurances and one housing fund for employees, and regularly organised medical examinations for employees

Governance Achievements

• Established a complete ESG management system, integrating ESG management into the Company's decision-making process and the daily work of various departments
• Established an anti-bribery and anti-corruption system

Climate Goals & Targets

Environmental Challenges

• Significant decline in the overall advertising market spending due to the COVID-19 pandemic
• Risk of intensified market competition
• Risk relating to the outflow of talents
• Operating cash flow turnover risk

Mitigation Strategies

• Implemented measures to enhance efficiency and address short-term market challenges
• Maintaining the capabilities of continuous innovation and business development
• Establishing a reasonably compensation system to attract human resources in the society and retain existing talents
• Conducting scientific management on capital flows, formulating capital plans every year, and rationally arranging the use of the Company’s funds

Supply Chain Management

Supplier Audits: 32 suppliers

Responsible Procurement

• Formulated a strict plan for budget, procurement and settlement to supervise the procurement process
• Strictly controls the sources of suppliers, and inspects and categorizes suppliers based on factors such as their supply quality and credit level

Climate-Related Risks & Opportunities

Awards & Recognition

• Greater China Region Integrated Marketing Company of the Year
• Bronze Award for In-depth Content Marketing Project Case of the Year 2020
• China International Advertising Festival 2020 Advertiser Awards – Annual Case Award – Gold Award for In-depth Marketing

Environmental Metrics

ESG Focus Areas

• Carbon emissions management
• Green operations, lower energy consumption
• Compliance with national laws and regulations
• Equal and diverse employment, and employees’ care
• Occupational health and employees’ safety
• Employees’ development and training
• Prohibition of child labour and forced labour
• Open and fair procurement
• Customer services and boycott false advertisements
• Anti-corruption and integrity promotion
• Community welfare

Environmental Achievements

• Reduced greenhouse gas emissions (Scope 1 and 2) from 20.23 tonnes CO2e to 12.70 tonnes CO2e.
• Reduced paper consumption from 21.88 kg to 10.91 kg.

Social Achievements

• No work-related fatalities or lost workdays due to work-related injuries.
• No cases of child labor or forced labor.

Governance Achievements

• Implemented robust ESG management framework with Board oversight.
• Conducted anti-corruption training for directors and employees.

Climate Goals & Targets

Environmental Challenges

• Macroeconomic volatility affecting advertisers' investments.
• Intense market competition.
• Talent outflow and staff stability issues.
• Operating cash flow turnover risks.
• Large scale and high concentration of accounts receivable.
• Risk of losing core customers and issues with customer structure.
• Potential climate-related physical and transition risks.

Mitigation Strategies

• Strengthened market research and analysis; formulated comprehensive market strategy.
• Improved competitiveness through service innovation, marketing regulation, and brand promotion.
• Improved employee compensation and benefits; optimised performance appraisal mechanism; established talent cultivation mechanism.
• Scientific capital flow management; formulated capital plans; improved capital utilization efficiency.
• Strict two-way control by Finance and Business Departments; legal intervention for recovery.
• Exploring sub-sector customers; developing direct customers; promoting diversified customer structure.
• Mitigation plans including flexible work arrangements and precautionary measures for extreme weather; regular review of internal environmental practices.

Supply Chain Management

Supplier Audits: Special audits conducted by professional consulting and accounting firms for major purchases.

Responsible Procurement

• Strict budgeting, procurement, and settlement plans; open, fair, and equitable tender procurement process; supplier classification based on quality and credit level; systematic entry and exit mechanisms; prioritization of environmentally friendly suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency and severity of extreme weather conditions.

Transition Risks

• Stringent environmental laws and regulations; additional compliance costs.

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Stock Exchange ESG Reporting Guide

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Two Gold Cases at the 30th China International Advertising Festival.