Climate Change Data

Environmental Metrics

ESG Focus Areas

• Green Development
• Supporting SMEs and Inclusive Finance
• Compliance with Laws and Regulations
• Stakeholder Engagement
• Employee Well-being

Environmental Achievements

• Supported clean energy projects (wind, solar, hydro, nuclear) across 15 provinces.
• Leased 3956 new energy buses, significantly reducing CO2 emissions.
• Ordered 10 energy-efficient Newcastle bulk ships meeting Tier III emission standards.

Social Achievements

• Launched 'Easy Leasing' for commercial vehicles and engineering machinery, supporting SMEs.
• Organized various employee wellbeing initiatives (health checkups, training, recreational activities).
• Engaged in community investment through charitable donations and volunteer work.

Governance Achievements

• Established comprehensive risk management system covering credit, market, liquidity, and compliance risks.
• Implemented robust anti-corruption and anti-money laundering measures.
• Maintained high credit ratings (Moody's A1, S&P A, Fitch A+).

Climate Goals & Targets

Environmental Challenges

• Credit risk, market risk, liquidity risk, operational risk, information technology risk, and reputation risk.
• Financing difficulties faced by SMEs.

Mitigation Strategies

• Optimized appraisal mechanisms, standardized loan procedures, enhanced after-leasing management, and implemented a non-performing asset accountability system.
• Developed 'Easy Leasing' products for SMEs, expanding access to finance.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Hong Kong Stock Exchange ESG Reporting Guidelines (2015)

Awards & Recognition

• Best IPO Award
• Annual Transaction Award
• Key Enterprise of Service Trade
• President’s Award
• Junding Award
• Leaping Development Award
• Best Green Finance Award
• Best Leasing Company
• Best Corporate Governance Award

Environmental Metrics

ESG Focus Areas

• Green finance
• Stakeholder engagement
• Health and safety
• Product responsibility
• ESG risk management
• Inclusive finance
• Employment
• The environment and natural resources
• Use of resources
• Addressing climate change
• Labor standards
• Supply chain management
• Community investment
• Anti-corruption

Environmental Achievements

• Reduced total GHG emissions (Scope 1 and Scope 2) from 2,886.61 tCO2e to 5,052.99 tCO2e. Note: This appears to be an increase, not a reduction. Further investigation is needed to clarify this discrepancy.
• Reduced emissions by energy-saving aircraft leasing business by 171,000 tonnes of carbon dioxide equivalent.
• Invested RMB11.48 billion in boosting clean energy supply, representing a year-on-year increase of 43.04%, and recorded a new installed capacity of more than 2,500 MWh.
• Developed 37 new energy power stations (mainly for photovoltaic and wind power generation).

Social Achievements

• Invested funds in old revolutionary base areas to consolidate poverty alleviation achievements.
• Made donations to 4 schools in Yunnan and Guizhou to improve local teaching facilities and students’ living conditions.
• Donated teaching supplies to Pingnan School in Longgang District, Shenzhen.
• Supported small and micro enterprises in disaster-stricken areas in Henan.
• Processed rent payment deferral for approximately 4,000 customers in 2021.
• Successfully and safely achieved crew shift change involving over 1,060 crew members for all time-chartered ships under operating leases with no one on board infected.

Governance Achievements

• Established an ESG governance system with synergy across various levels and clear division of responsibility.
• Formulated several internal management policies to improve its internal integrity system.
• No corruption lawsuits were filed against the Group or its employees and were concluded during the Reporting Period.
• Revised several internal management documents including the Management Rules on Anti-money Laundering and Sanctions Compliance and Management Rules on Anti-money Laundering Information.

Climate Goals & Targets

Environmental Challenges

• Severe and complex economic and financial situation and the novel coronavirus pneumonia pandemic.
• Climate-related risks from the business side, including customer impacts from physical risks and transition risks, leading to increased credit risks and potential asset impairment.
• Crew shift change problems caused by the COVID-19 pandemic in the global shipping industry.

Mitigation Strategies

• Improved comprehensive risk management system, incorporating ESG risks.
• Implemented policies to reduce rents for customers affected by natural disasters and purchased insurance to avoid impairment of leased assets.
• Formulated special financial schemes such as deferral of rent payments and waiver of liquidated damages to alleviate the financial pressure of small and micro customers.
• Strengthened pandemic prevention and control on board ships, arranged crew shift change as soon as possible, and gave appropriate allowances to crew members exceeding the normal shift period.

Supply Chain Management

Responsible Procurement

• Central procurement system for projects over RMB 100,000.
• Strict terms for suppliers to avoid environmental and social risks.
• Requirement for ISO certifications for environmentally friendly materials and evidence of social security payments for service projects.

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters (floods, typhoons, etc.) damaging premises, equipment, and assets.

Transition Risks

• Transformation risks from low-carbon equipment and technology development.

Opportunities

• Resource efficiency improvements
• Expansion of low-emission goods and services
• Development of new products/services
• Enhancement of business diversification
• Changes in consumer preference
• Adaptability through renewable energy projects and energy efficiency measures

Reporting Standards

Frameworks Used: Hong Kong Stock Exchange’s ESG Reporting Guide, TCFD Recommendations

UN Sustainable Development Goals

• SDG 1
• SDG 3
• SDG 4
• SDG 5
• SDG 6
• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 11
• SDG 12
• SDG 13

The Group identified 12 sustainable development goals closely related to itself and took relevant actions in its business operation and daily operation and management, as well as participating in community investment activities.

Sustainable Products & Innovation

• Energy-saving aircraft
• Environment-friendly ships
• Clean energy infrastructure
• New energy bus
• EPC direct leasing for the construction period
• Trust structure leasing
• Leasing under the BT Model

Awards & Recognition

• Best Financial Institution
• Most Competitive Financial Leasing Company
• Most Influential Financial Leasing Company
• Social Responsibility Award of the Year
• 2020-2021 Excellent Case Award for Green Finance

Environmental Metrics

ESG Focus Areas

• Green finance
• Environment and natural resources
• Stakeholder engagement
• Development and training
• Health and safety
• Employment

Environmental Achievements

• Balance of energy infrastructure leasing assets amounted to RMB 29.37 billion
• New clean energy power plant investment exceeds RMB 11 billion
• Existing projects include 47 wind power plants with an installed capacity of 2,994.10 MW and 54 photovoltaic plants with a total installed capacity of 3,237.67 MW, which can achieve 8.60 million tons of carbon dioxide equivalent emission reduction per year

Social Achievements

• Donation of RMB 1.98 million for village revitalization infrastructure and RMB140,000 for the procurement of agricultural products for poverty alleviation
• Development of agricultural equipment leasing business, benefiting more than 2,200 end-users
• Support the coordinated development of regional economy with investing RMB 70.20 billion in key strategic areas

Governance Achievements

• Completed a total of 308 internal management improvement tasks
• Establishment of internal ESG governance structure and improved ESG management process

Climate Goals & Targets

Environmental Challenges

• Climate-related risks from the business side, including physical risks (damage to assets due to natural disasters) and transition risks (equipment impairment due to low-carbon transition)
• Potential impact of climate change on customers, resulting in increased operating costs and default probability

Mitigation Strategies

• Incorporating ESG risks, including climate-related risks, into the comprehensive risk management system
• Annual climate risk review and analysis
• Implementing measures to address acute physical risks (insurance, support for disaster-affected customers)
• Seizing climate-related opportunities (resource efficiency, energy efficiency, product and services expansion)

Supply Chain Management

Responsible Procurement

• Openness, transparency, fairness, and impartiality in pre-tender review
• Supplier qualification and capability assessment
• Signing the Agreement on Integrity in Bank-Enterprise Cooperation with suppliers
• Requirements for environmental friendly materials and construction practices

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters (floods, typhoons) damaging assets and infrastructure

Transition Risks

• Equipment impairment due to low-carbon transition

Opportunities

• Resource efficiency
• Energy efficiency
• Expansion of low-emission goods and services
• Development of new products/services
• Diversification of business activities (green finance)

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix 27 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited), Work Plan for Improving the Quality of Listed Companies Controlled by Central Enterprises (SASAC), TCFD Recommendations

UN Sustainable Development Goals

• SDG 1
• SDG 3
• SDG 4
• SDG 5
• SDG 6
• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 11
• SDG 12
• SDG 13

Actions undertaken in business operations, daily management, and community investment activities

Sustainable Products & Innovation

• Energy-saving aircraft
• Environment-friendly ships
• Clean energy infrastructure
• New energy vehicles

Awards & Recognition

• Social Responsibility Award of the Year
• Asia Pacific Debt Deal of the Year
• Overall Deal of the Year
• Shenzhen Service Trade Industry Leader Award
• Leading Enterprise in High Quality Development
• Outstanding Case on Green and Sustainable Finance in Shenzhen
• Model of Inclusive Finance Award of the Year
• Extraordinary Contribution Award