Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Responsibility
• Governance

Environmental Achievements

• Reduced carbon emissions by approximately 14.2 million metric tons annually (according to a research report commissioned by the company)

Social Achievements

• Helped truckers collect late payments in the amount of RMB905 million from shippers in 2021
• Facilitated nearly three million tons of cargo shipments, including daily necessities and medical supplies, to or from Hubei Province during the COVID-19 outbreak in 2020
• Offered financial relief to platform users in Hubei Province during the COVID-19 outbreak in 2020

Governance Achievements

• Underwent a reorganization in the fourth quarter of 2021 to enhance corporate governance

Climate Goals & Targets

Environmental Challenges

• Cybersecurity review by regulatory authorities in China
• Fluctuations in China’s road transportation market
• Attracting and maintaining a critical mass of shippers and truckers
• Maintaining, protecting, and strengthening the company's brands
• Ensuring sufficient market acceptance of solutions and services
• Managing unethical or fraudulent behaviors of ecosystem participants
• Effectively matching truckers with shipments and optimizing pricing models
• Implementing successful monetization strategies
• Incurring net losses
• Managing the growth of the company's operations
• Adapting to changes in China's road transportation market
• Maintaining and increasing the scale of its network
• Maintaining a balance between shipper demand and trucker supply
• Maintaining high-quality support and introducing new service offerings
• Managing credit risks related to credit solutions
• Collecting accounts receivable
• Complying with anti-money laundering laws and regulations
• Managing employee misconduct
• Ensuring the performance, reliability, and availability of technology systems
• Maintaining and improving information technology infrastructure
• Protecting intellectual property
• Maintaining adequate insurance coverage
• Managing strategic investments and acquisitions
• Managing risks related to minority-owned investees
• Maintaining an effective system of internal control over financial reporting
• Managing increases in labor costs in the PRC
• Responding to financial or economic crises
• Responding to health epidemics and natural disasters
• Responding to political tensions between the United States and China
• Writing down goodwill and other identifiable intangible assets
• Managing risks associated with the VIE structure
• Managing potential conflicts of interest with shareholders of Group VIEs
• Managing the concentration of ownership by Mr. Peter Hui Zhang
• Managing the dual-class structure of share capital
• Managing risks related to custodians of controlling non-tangible assets
• Managing uncertainties related to the PRC Foreign Investment Law
• Managing restrictions on the transfer of funds
• Managing fluctuations in exchange rates
• Managing the lack of PCAOB inspection of the auditor
• Managing the risk of delisting from the NYSE due to the HFCA Act
• Managing potential liability in connection with legal proceedings
• Managing potential defects in leased property interests
• Securing additional capital
• Managing dependence on key personnel
• Managing challenges in measuring metrics and estimates
• Managing dependence on app stores to distribute mobile apps
• Managing significant costs as a public company
• Managing limitations on transfer of ADSs
• Managing limitations on shareholder rights due to Cayman Islands incorporation
• Managing risks related to PFIC status for US tax purposes
• Managing limitations on corporate governance practices due to foreign private issuer status

Mitigation Strategies

• Implementing measures to address material weakness in internal control over financial reporting
• Implementing a risk management system to address credit risk exposure
• Implementing rules to address bad behaviors of ecosystem participants
• Implementing a robust ratings system
• Engaging in online and offline marketing
• Investing in a company that develops autonomous truck driving technology
• Collaborating with ecosystem participants to promote the use of clean energy-powered trucks
• Sponsoring a trucker assistance foundation
• Exploring initiatives to better serve truckers
• Implementing policies and practices to comply with data privacy laws and protect the security of user data
• Establishing a customer services committee
• Recruiting customer experience officers
• Implementing measures to manage credit risks
• Implementing measures to protect intellectual property
• Maintaining various insurance policies
• Implementing measures to manage risks related to minority-owned investees
• Implementing measures to manage risks related to the VIE structure
• Implementing measures to manage potential conflicts of interest with shareholders of Group VIEs
• Implementing measures to manage dependence on key personnel
• Implementing measures to manage risks related to custodians of controlling non-tangible assets
• Implementing measures to manage uncertainties related to the PRC Foreign Investment Law
• Implementing measures to manage restrictions on the transfer of funds
• Implementing measures to manage fluctuations in exchange rates
• Implementing measures to manage the lack of PCAOB inspection of the auditor
• Implementing measures to manage the risk of delisting from the NYSE due to the HFCA Act
• Implementing measures to manage potential liability in connection with legal proceedings
• Implementing measures to manage potential defects in leased property interests
• Implementing measures to secure additional capital
• Implementing measures to manage dependence on key personnel
• Implementing measures to manage challenges in measuring metrics and estimates
• Implementing measures to manage dependence on app stores to distribute mobile apps
• Implementing measures to manage significant costs as a public company
• Implementing measures to manage limitations on transfer of ADSs
• Implementing measures to manage limitations on shareholder rights due to Cayman Islands incorporation
• Implementing measures to manage risks related to PFIC status for US tax purposes
• Implementing measures to manage limitations on corporate governance practices due to foreign private issuer status

Supply Chain Management

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• Goal 9: Industry, Innovation and Infrastructure
• Goal 13: Climate Action
• Goal 8: Decent Work and Economic Growth
• Goal 11: Sustainable Cities and Communities

The company believes its core values are aligned with these SDGs.