Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Green delivery capacity covering more than 90% of service scenarios. Approximately 96% of active riders fulfilled orders via electric two-wheeled vehicles or public transportation.
• Launched a recycling service for thermal insulation bags used in beverage delivery.

Social Achievements

• Launched a comprehensive rider rights and incentives system.
• Employee satisfaction reached 85%.
• Rider safety accident rate improved by approximately 14%.
• Over 5,000 sessions of rider care activities involving over 300,000 riders.

Governance Achievements

• Established a three-level ESG governance structure.
• Implemented a comprehensive risk management policy.
• Established a whistle-blowing process with online operation.
• 100% of employees signed the Letter of Anti-Corruption Commitment. No corruption lawsuits filed against the Company or its employees.

Climate Goals & Targets

Environmental Challenges

• Climate change risks (physical risks from extreme weather and transition risks from policy, technology, and market changes).
• Intellectual property risk, industry policy risk, production safety risk, employment safety risk and human resource management risk.

Mitigation Strategies

• Integrated ESG risk into enterprise risk management system.
• Developed an emergency response mechanism for bad weather.
• Increased the contribution of new energy vehicles to delivery capacity.
• Formulated internal operation guides to deal with policy risks.
• Conducted more than 35 training sessions for risk management personnel.

Supply Chain Management

Supplier Audits: On-site audits conducted; SRM system implemented in 2022

Responsible Procurement

• Administrative Measures for Supplier Introduction, Procurement Management System, Administrative Measures for Supplier Certification for Intra-city Centralized Procurement and Operational Guidelines for On-site Audit of Suppliers
• Integrity Terms and Conditions (100% supplier signing rate in 2021)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events causing supply chain disruptions, transport infrastructure damage, power supply instability, and rider safety risks.

Transition Risks

• Increased costs to meet compliance requirements, increased delivery costs due to energy price rise, transitional cost of equipment replacement, market shifts.

Opportunities

• Development of smart delivery to reduce operating costs, development of smart operations, participation in green finance.

Reporting Standards

Frameworks Used: Appendix 27 of the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited

Certifications: National information security level protection filing certificate

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Smart helmets, CLS intelligent solutions

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Governance
• Services
• Society
• Environment

Environmental Achievements

• GHG emission intensity, office electricity and water intensity, as well as office waste intensity were all lower than those of 2021, achieving the environmental target of 2022.
• 95% of riders fulfilled orders via electric two-wheeled vehicles or public transportation, covering more than 90% of capacity scenarios.

Social Achievements

• 100% employee labour contract signing rate.
• Launched a one-stop online learning platform “Intra-city Academy ” with a staff training coverage of 99%.
• Created a warm and friendly career platform with sustainable development opportunities for riders.
• Delivered social value and actively interacted with local communities in scenarios such as community service, elderly care and anti-pandemic support.

Governance Achievements

• One female Independent Non-executive Director was newly appointed, raising the proportion of females in Directors, Supervisors and Senior Management to 27%.
• Adhering to the principle of “zero tolerance” for corruption. The signing rate of the Letter of Commitment to Anti-corruption by second- and third-line employees reached 100%.
• Strengthening the construction of network information security. The Company passed the ISO 27001 Information Security System certification, with 100% coverage of staff training on cybersecurity and information security.

Climate Goals & Targets

Environmental Challenges

• Climate change related physical risks (extreme weather events, impacting supply chains, delivery, and personnel safety) and transition risks (policy/regulation changes, technological shifts, market changes, stakeholder impacts).
• Maintaining delivery safety and efficiency during holidays and bad weather.

Mitigation Strategies

• Developed an emergency response mechanism for bad weather and provides early warnings via the SF Intra-city Rider App.
• Provides high-temperature subsidies to riders in hot weather, flexibly allocates transportation capacity, and protects the health and safety of employees and riders.
• Implemented digital operations for real-time order tracking and automated intervention for abnormalities.
• Established a list of prohibited items to control delivery of illegal goods.

Supply Chain Management

Responsible Procurement

• Supplier integrity agreement and supplier social responsibility clauses both reached 100% signing rates.
• Incorporated environmental protection requirements of ISO 9000 certification and Restriction of Hazardous Substances (RoHS) into on-site review requirements for production suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Supply chain disruptions
• Transport infrastructure damage
• Power supply instability
• Network failures
• Increased rider safety risks
• Delivery suspensions
• Damage to assets

Transition Risks

• Increased costs to meet compliance requirements
• Increased delivery costs due to energy price rise
• Increased information disclosure risks
• Transitional cost of equipment replacement
• Cost of communicating environmental protection concepts
• Changes in consumer preferences
• Government attitudes towards products or projects affecting financing costs
• Concerns about delays in extreme weather affecting investment

Opportunities

• Development of smart delivery to reduce operating costs
• Savings in water and electricity resources
• Development of smart operations
• Insight into clean energy development trends
• Participation in green finance
• R&D and innovation in energy-efficient products and services
• Changes in consumer preferences towards green services
• Increased investor interest in low-carbon enterprises

Reporting Standards

Frameworks Used: Appendix 27 of the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited

Certifications: ISO 27001

Sustainable Products & Innovation

• Recyclable document envelopes

Awards & Recognition

• 2022 CYZONE “Quality Technology Service Provider for Logistics Digitalization and Intelligence”, “Logistics data broker”
• 2022 JRJ “Outstanding Digital Intelligence Application Innovation Award”
• 2022 China Intra-city On-demand Delivery Industry Summit “Technology Innovation Award”
• 2022 Reassurance Award “Annual On-demand Logistics Platform”
• 2022 China Federation of Logistics and Purchasing “Social Responsibility pioneer of China’s Logistics Industry”
• 2022 Gelonghui “Annual Large Market Cap Growth Value Award”
• 2022 Hithink RoyalFlush “Best Investor Relations Management Award”
• 2022 Tiger Brokers “Best Investor Companion Award”, “Best Investor Interaction Award”
• 2022 IRSC “Best Shareholder Relations Award”
• 2022 Futu “Capital Market Communication Innovation Team”
• 2022 National Business Daily “Overseas Listed Company with Most Growth Potential”

Environmental Metrics

ESG Focus Areas

• Governance
• Environment
• Social

Environmental Achievements

• Reduced about 2.3 million tonnes of carbon emissions due to using green transportation (98% electric vehicles)
• Implemented the concept of green packaging, using 64,000 recyclable document envelopes annually (equivalent to reducing the use of 3.2 million paper document envelopes)
• Reduced the use of about 290,000 paper contracts annually and lower carbon emissions by about 50.895 tonnes of carbon dioxide equivalents using e-signature platform
• Calculating and disclosing of Scope 3 carbon emissions for the first time

Social Achievements

• Invested RMB2.85 million in caring for its employees, and expressing care to employees and their family members by nearly 50,000 visits
• Number of active riders reached 950,000 during the year. Creating a warm and friendly career platform with sustainable development opportunities for riders by means of “remuneration + training + care + culture”
• Protecting the safety of riders. The Company has invested heavily in intelligent hardware equipment to protect the safety of the operation of riders, and has allocated more than 10,000 intelligent helmets in total
• 17,746 attendees participated in training during the year, with a total investment of RMB 6.73 million in training

Governance Achievements

• Engaging a third-party organisation for the first time to verify the ESG Report. No material errors were found.
• Continuing to enhance good corporate governance and diversity on the Board of Directors, with the proportion of female directors, supervisors and senior management increasing to 34%
• Adhering to the principle of “zero tolerance” for corruption, with a 100% signing rate of the Anti-Corruption Commitment by employees and 255 hours of anti-corruption training attended by senior management
• Strengthening the construction of network information security. Online training and education sessions covered 100% of its employees

Climate Goals & Targets

Environmental Challenges

• Extreme weather events can cause transportation disruptions, facility damage and supply chain delays
• Malicious attacks and data leakage may lead to reputation loss and legal problems
• Increased costs to meet compliance requirements
• Slow progress in decarbonising the grid and the increasing clean energy prices result in higher delivery costs

Mitigation Strategies

• Developed an emergency response mechanism for bad weather
• Provide high temperature subsidies to riders in hot weather or extremely cold weather
• Enhance information security infrastructure and implement regular security audits and monitoring
• Keep abreast of and comply with relevant regulatory requirements and enhance our disclosure standards
• Explore renewable energy and other alternative energy sources

Supply Chain Management

Responsible Procurement

• Supplier integrity agreement, supplier social responsibility clauses, green environmental protection included in the assessment index of suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons, extreme precipitation, floods, extremely hot weather, extremely cold weather, heat stress, sea level rise and coastal flooding

Transition Risks

• Disclosure of information relating to mandatory emissions and decarbonisation targets, instability of green technologies, market risks, reputation risks

Opportunities

• Resource efficiency, operational efficiency, financing opportunities, R&D and innovation, changes in consumer preferences, preferences of investors

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix C2 of the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited)

Certifications: ISO 27001

Third-party Assurance: China Chengxin Certification (Shenzhen) Co., Ltd.

UN Sustainable Development Goals

• Goal 8, Goal 3, Goal 5, Goal 11, Goal 12, Goal 17

Awards & Recognition

• 5th Anniversary Trust and Win-Win Award (Luckin Coffee)
• Best partner (Intracity On-demand logistics branch of CFLP)
• 2023 Outstanding Enterprise of China’s Logistics Industry
• 2023 Social Responsibility Contribution Award of China’s Logistics Industry
• Most Socially Responsible Listed Company (National Business Daily)
• Outstanding Finance Team of the Year (Barron’s China)
• Excellent Services (Xueqiu)
• Top 100 Listed Companies with the Most Growth Potential in 2023 (TMT Post)
• Best Listed Company in Internal Governance (Hong Kong Investor Relations Association)
• Certificate of Excellence (Caijing Magazine)
• Most Valuable Business Brand of the Year (RoyalFlush Hong Kong and U.S. Stock Investment Elite Award)
• TOP300 Most Popular Listed Companies (Stock Star Annual Industry Influence Award)
• Best Investment Value Award for Listed Companies (Capital Week)