Climate Change Data

Environmental Metrics

ESG Focus Areas

• Financial Inclusion
• Green Supply Chain
• Social Welfare
• Climate Change
• Corporate Governance
• Supply Chain Technology
• Data Security
• Employee Well-being
• Sustainable Development

Environmental Achievements

• Reduced paper usage by approximately 108 tonnes through the SY Cloud Platform.
• Shenzhen Head Office achieved LEED-EBOM Platinum certification.

Social Achievements

• Connected 10,358 SMEs to the SY Cloud Platform (a 40% increase from 2020).
• Cumulative supply chain assets processed reached RMB132 billion (a 30% increase from 2020).
• Established SY Public Welfare Foundation.
• Donated approximately RMB10 million since 2014 for various social welfare activities.
• Average training hours per employee: 21.61 hours.

Governance Achievements

• Received MSCI ESG Rating A.
• Included in the Hang Seng Corporate Sustainability Benchmark Index.
• Hang Seng ESG Rating upgraded to A.
• Obtained ISO 27001 Information Security Management System certification and Level 3 certification of the national information security protection scheme.
• Amended Anti-Corruption and Whistleblowing Policy.

Climate Goals & Targets

Environmental Challenges

• Climate change related risks (policy and legal risks, market risks, reputational risks, acute and chronic physical risks).
• Supply chain disruptions due to various factors.

Mitigation Strategies

• Prioritizing low-carbon projects.
• Streamlining processes to reduce energy consumption and carbon emissions.
• Implementing online and paperless operations.
• Monitoring and addressing climate risks.
• Setting carbon emission targets.

Supply Chain Management

Supplier Audits: 29.07%

Responsible Procurement

• Supplier whitelist
• ESG considerations in procurement
• Letter of Undertaking of Integrity

Climate-Related Risks & Opportunities

Physical Risks

• Floods, storms, epidemics
• Changes in average temperature, water availability, sea level rise

Transition Risks

• Policy and legal risks
• Market risks
• Reputational risks

Reporting Standards

Frameworks Used: “Environmental, Social and Governance Reporting Guide” set out in Appendix 27 to the “Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited”

Certifications: ISO 27001, LEED-EBOM Platinum (Shenzhen Office)

Awards & Recognition

• MSCI ESG Rating A
• Hang Seng Corporate Sustainability Benchmark Index constituent
• Hang Seng ESG Rating A
• Other awards mentioned in the report

Environmental Metrics

ESG Focus Areas

• Technology-enabled inclusive finance
• Build low carbon ecosystems
• Pay attention to environmental business ethics
• Reward others’ trust in a responsible manner
• Strive for joint development with staff
• Disseminate SY’s social values

Environmental Achievements

• Accumulatively reduced paper consumption by 46.21 million pieces
• Cumulative carbon reduction on online platform was 358 tons
• Clean travel proportion was 85.45%

Social Achievements

• Total number of platform users in the SME ecosystem was 15,300+
• Total Loan Disbursed to SMEs was RMB22.16 billion
• Total amount of direct SME Loans was RMB11.89 billion
• The percentage of SMEs among financing customers during the year was over 97%
• The average single loan size was RMB1.97 million
• Total number of hours of volunteer services was over 2,300 hours
• Total amount of investments in volunteer service projects was RMB2,866,700
• Employee satisfaction with training was 98%
• Coverage rate of employee health examination was 88.83%

Governance Achievements

• The number of corruption lawsuits filed against the Company and its employees during the Reporting Period was 0
• During the Reporting Period, 5 business ethics-related incidents were handled and reported to the Board and all employees
• Obtained A rating from MSCI ESG
• Being covered by S&P’s ESG score for the first time At the leading level among our global peers

Climate Goals & Targets

Environmental Challenges

• Policy and legal risks related to carbon emission reduction and carbon peaking and neutrality
• Market risk related to investor and funder preferences for sustainable projects
• Liquidity risk related to carbon emission reduction policies
• Operational risks related to information security and compliance
• Reputational risk related to ESG performance

Mitigation Strategies

• Closely monitor extreme weather events and implement emergency plans
• Monitor environmental protection policies and adopt energy-saving measures
• Monitor climate-related policies and regulations
• Focus on developing sustainable projects and improve energy efficiency
• Strictly control climate risks and carbon reduction management

Supply Chain Management

Supplier Audits: 100%/year

Responsible Procurement

• Supplier qualification and capability assessments
• Supplier whitelist verification
• ESG requirements incorporated into supplier selection, cooperation approval, process management, and feedback tracking
• Green procurement
• Suppliers sign a “Letter of Undertaking of Integrity”

Climate-Related Risks & Opportunities

Physical Risks

• Rise in sea level, extreme weather events
• Increase in average temperature

Transition Risks

• Increased pricing of greenhouse gas emissions
• Stricter regulations to reduce carbon emissions
• Changes in customers’ behavior

Opportunities

• Increased financing needs of SMEs in green finance
• Product and service opportunities related to carbon neutrality

Reporting Standards

Frameworks Used: “Environmental, Social and Governance Reporting Guide” set out in Appendix C2 to the “Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited”

Awards & Recognition

• CNBC’s list of “Top 200 Global Fintech Companies in 2023”