Climate Change Data

Yangzhou Guangling District Taihe Rural Micro-finance Company Limited

Climate Impact & Sustainability Data (2020, 2021)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:104.6 tCO2e/year
Scope 1 Emissions:54.0 tCO2e/year
Scope 2 Emissions:50.3 tCO2e/year
Scope 3 Emissions:0.3 tCO2e/year
Total Energy Consumption:71,455 kWh'000/year
Water Consumption:220 m3/year
Waste Generated:0.5 tons/year
Carbon Intensity:4.2 tonnes CO2e/employee

ESG Focus Areas

  • Environmental Sustainability
  • Social Responsibilities (Employees, Suppliers, Customers)
  • Governance (Anti-Corruption, Anti-Money Laundering)

Environmental Achievements

  • Implemented energy conservation measures to reduce emissions and resource consumption
  • Reduced GHG emissions to 104.6 tonnes CO2e (4.2 tonnes CO2e/employee)

Social Achievements

  • Complied with all relevant laws and regulations in relation to health and safety, workplace conditions, employment
  • Organized staff training on law, finance, micro-credit practices, time management etc.
  • Employees participated in about 50 hours of community-based volunteer activities

Governance Achievements

  • Established an “Anti-money Laundering Policy”
  • Included a whistle-blowing policy in the “Staff Handbook”

Environmental Challenges

  • Credit risk is the most significant risk inherent to our business
  • Business operation is subject to government policy, relevant regulations and guidelines
Mitigation Strategies
  • Put in place a standardized and centralized risk management system
  • Adopted a policy of “separation of due diligence and approval”
  • Closely monitors changes in government policies, regulations and markets

Supply Chain Management

Responsible Procurement
  • Procurement policy to select reliable suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Appendix 27 Environmental, Social and Governance Reporting Guide

Awards & Recognition

  • “Model and Star Microfinance Companies” in Yangzhou City

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:97 tCO2e/year
Scope 1 Emissions:39.5 tCO2e/year
Scope 2 Emissions:57.2 tCO2e/year
Scope 3 Emissions:0.3 tCO2e/year
Renewable Energy Share:Not disclosed
Total Energy Consumption:81,308 kWh/year
Water Consumption:220 m3/year
Waste Generated:0.5 tons/year
Carbon Intensity:4.7 tonnes CO2e/employee

ESG Focus Areas

  • Environmental sustainability
  • Employee well-being
  • Customer satisfaction
  • Supply chain management
  • Compliance

Environmental Achievements

  • Implemented energy conservation measures to reduce emissions and resource consumption
  • Reduced electricity consumption through various measures (details in report)
  • Reduced water consumption through various measures (details in report)
  • Implemented recycling policy for office waste
  • Encouraged employees to use public transport

Social Achievements

  • Complied with all relevant laws and regulations related to health and safety, workplace conditions, and employment
  • Organized staff training on various professional skills and topics
  • Provided body checks for all employees and encouraged participation in cultural and sports activities
  • No work-related death or injury at the workplace
  • Established a rigorous supply chain management system

Governance Achievements

  • Complied with the principles and code provisions of the Corporate Governance Code
  • Established three Board committees: Audit, Nomination, and Remuneration
  • Implemented a standardized process to monitor the grant of loans
  • Established an internal audit department
  • Implemented a reward and punishment policy to ensure effective implementation and enforcement of the Company’s credit policy

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Reduce electricity consumption by 5% in three years compared to 2021
  • Reduce water use by 5% in three years compared to 2021

Environmental Challenges

  • Decrease in interest income due to decrease in effective interest rate and decrease in the average daily balance of loans receivable
  • Decrease in profit after tax primarily attributable to the impact of the COVID-19 pandemic on the local economy, resulting in increased loan defaults
  • Credit risk inherent in microfinance business
Mitigation Strategies
  • Strengthened provisions for impairment losses on loans
  • Enhanced the write-off of non-performing loans
  • Established an associate and invested RMB80.0 million
  • Appropriate downsizing of the Group’s lending business
  • Implemented a standardized and centralized risk management system
  • Implemented the “separation of due diligence and approval” policy
  • Conducted additional training sessions on credit risk control
  • Conducted a comprehensive risk scanning for borrowers affected by the COVID-19 pandemic
  • Initiated foreclosure proceedings for loans secured by collateral
  • Negotiated repayment plans with defaulting customers

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Procurement policy to select reliable suppliers
  • Consideration of suppliers’ reputation and track record

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: Appendix 27 Environmental, Social and Governance Reporting Guide to the Rules Governing the Listing of Securities on the Stock Exchange

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Top Ten Star Microfinance Companies
  • Model and Star Microfinance Companies