Climate Change Data

Environmental Metrics

ESG Focus Areas

• Governance
• Compliance
• Talent
• Innovation
• Green Development
• Customer Trust
• Supply Chain Sustainability
• Corporate Social Responsibility

Environmental Achievements

• Signed the SBTi Commitment Letter in May 2023.
• Increased installed PV capacity by 22 MW (700% YoY growth).
• Achieved a 9.7% YoY decrease in absolute Greenhouse Gas (GHG) emissions (scope 1, 2, and 3).
• Achieved a 14.58% YoY decrease in the physical intensity of GHG emissions during the use and maintenance phases of the company's sold telecom products.

Social Achievements

• Total number of employees reached 72,093 globally.
• 86.97% of main suppliers and subcontractors passed onsite CSR audits.
• Total number of registered employee volunteers reached 10,754, and annual public welfare investment exceeded CNY 26 million.

Governance Achievements

• Proportion of female directors in the Board of Directors reached 22.22%.
• Proportion of independent non-executive directors in all professional committees reached 60%.
• Secured the ISO 22301 certification for Business Continuity Management (BCM).

Climate Goals & Targets

Environmental Challenges

• Global economic complexities
• International country risks
• Climate-related risks (detailed in CDP Climate Change Questionnaire)
• Supply chain disruptions (implied)

Mitigation Strategies

• Strengthening governance and internal control
• Implementing Business Continuity Management (BCM)
• Improving compliance systems (export control, data compliance, anti-bribery)
• Investing in supply chain resilience and supplier capability building
• Developing alternative sourcing strategies (implied)

Supply Chain Management

Supplier Audits: 86.97% of main suppliers and subcontractors passed onsite CSR audits in 2023. 1030 suppliers surveyed for conflict minerals.

Responsible Procurement

• Supplier CSR Agreement
• Supplier CSR Code of Conduct
• Conflict Minerals Compliance Management Declaration
• Green procurement practices
• Dual-carbon requirements for suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and solutions

Reporting Standards

Frameworks Used: GRI Standards, UN SDGs, UN Global Compact Ten Principles, ISO 26000, Hong Kong Stock Exchange ESG Guide, Shenzhen Stock Exchange Self-Regulatory Guidelines

Certifications: ISO 22301 (BCM), ISO 37001 (anti-bribery), ISO/IEC 27701 (privacy), ISO 9001, TL 9000, QC 080000, ESD, ISO 45001, ISO 14001, NESAS CCS-GI (5G NR), CC EAL3+ (OTN products), IEC 62443 (digital energy products)

Third-party Assurance: TÜV Rheinland (Shanghai) Co.,Ltd. (AA1000 assurance standard)

UN Sustainable Development Goals

• SDG 1, 3, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17

Initiatives aligned with multiple SDGs as detailed throughout the report.

Sustainable Products & Innovation

• Energy-efficient telecom and terminal products
• Recycled plastic in terminal products

Awards & Recognition

• National Green Supply Chain Management Enterprise
• National Green Factory (Heyuan Base)
• CDP’s A List
• FTSE4Good Index Series inclusion
• S&P Global's Sustainability Yearbook 2023 (China Edition) selection
• Numerous other awards listed in the report

Environmental Metrics

ESG Focus Areas

• Green and environmental protection
• Digital transformation
• Corporate social responsibility
• Talent development
• Sustainable development

Environmental Achievements

• Assesses the “carbon footprint” of tombstones to estimate carbon emissions and reduce energy consumption.
• Developed a new type of cremator, JS3-II, expected to save energy consumption by more than 10%.

Social Achievements

• Established the Shanghai Qingpu Li Ji Academy of Continuing Education, the first corporate death care vocational education institute in China.
• Launched the “Digital Cemeteries • Huixin Valley” project, officially entering the field of digital life services.
• Launched digital immersive tomb sweeping service.
• Actively undertakes corporate social responsibility and conducts in-depth exchanges and cooperation with different fields and industries.

Governance Achievements

• Complied with the CG Code throughout the six months ended June 30, 2023.
• Unaudited condensed consolidated financial statements reviewed by Deloitte Touche Tohmatsu.

Climate Goals & Targets

Environmental Challenges

• Market demand for burial services temporarily restrained in the same period of last year due to the Covid-19 outbreak.
• Impact on Shanghai cemeteries due to Covid-19 outbreak.

Mitigation Strategies

• Prompt arrangements to evaluate accumulated and delayed consumption demands to achieve an early “lock in” of customer pipeline.
• Precise analysis and grasping of customer’s pain points and demands, as well as the development and upgrade of responsive products and services.
• Stepping up implementation and exploration in the areas of Cloud Memorial, digital cemetery and digital assets.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IAS 34

Third-party Assurance: Deloitte Touche Tohmatsu

Sustainable Products & Innovation

• Eco-friendly cremation machine
• Digital cemetery
• Digital assets
• Immersive funeral system
• Digital person

Awards & Recognition

• Top 500 Innovative Brands in China
• Annual Excellent Charity Communication Case
• Top 10 Public Welfare Projects of the Year
• Outstanding Digital Innovation Enterprise
• 2023 Sustainability Contribution Award