Climate Change Data

Environmental Metrics

Social Achievements

• CITIC Securities International has been awarded the Caring Company logo for seven successive years by the Hong Kong Council of Social Service.
• The CLSA Chairman’s Trust has raised nearly US$22 million to fund over 115 charitable organizations in the past seven years, supporting the communities and groups in the Asian region with financial and human resources.
• In November 2013 when the Beijing carbon emissions exchange market was opened to the public, the Company invested in the acquisition of twenty thousand tonnes of carbon emission credits, making it the first financial institution which participates in the exchange following the opening of the domestic carbon market.

Environmental Challenges

• The Group’s business operation is highly dependent on the general economic and market conditions of China and other areas in which the Company operates, therefore, volatility in the Chinese and international capital markets will have significant impacts on the results of operation of the Group.
• Legal and compliance risk: the business management and standards may fail to align in a timely manner with changes in national laws and regulations and ordinances imposed by the regulatory authorities.
• Strategic risk: the Group may not be able to determine the strategic plan in response to the profound changes in the domestic and overseas capital markets.
• Internal operations and management risks: the risks arising from the transformation of our business model and emergence of new businesses and new technologies.
• Market risk may arise from the fluctuating price of the securities position held by the Group.
• Credit risk may arise from the default of its borrower or trading counterparty.
• Liquidity risk: the Group may encounter a shortage of fund in fulfillment of payment obligations.
• Operation risk may arise from the negligence or omission of the internal process management, information system failure or personnel misconduct.
• Risks such as currency exchange risk may arise from the operation of international businesses and financial innovative businesses.

Mitigation Strategies

• To cope with the above risks, the Group takes preventive measures through its organizational structure, management system, information technology, etc., while at the same time, optimizes its business process and focuses on strengthening the management of credit risk and liquidity risk.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Asiamoney Best Domestic Equity House in China in 2013
• Asiamoney Best Domestic Debt House in China in 2013
• Asiamoney Best Local Brokerage in China No.2
• Asiamoney Best Research Institution in China No. 3
• Asiamoney Best Overall Sales Services No. 2
• FinanceAsia Best Equity House in 2013
• FinanceAsia Best Bond House in 2013
• FinanceAsia Best FIG Deal in 2013 (CITIC Securities’ acquisition of CLSA)
• Euromoney Best Debt House in China in 2013
• Institutional Investor 2013 Overall All-China Research, No.4
• Institutional Investor 2013 All-China Sales, No. 5
• Institutional Investor 2013 All-China Trading Teams, No. 5
• Institutional Investor 2013 All-China Research Team: Autos & Auto Parts, No.2
• Institutional Investor 2013 All-China Research Team: Public Utilities, RUNNER(S)-UP
• The Asset Magazine Best Brokerage House of China
• The Asset Magazine Best Domestic Bond House of China
• IR Magazine Greater China Top 100
• The Banker Most Innovative Investment Bank from Asia-Pacific 2013
• Thomson Reuters Star Mine Ranked No. 2 – Honor for Analysts in Financial Industry in Asia in 2013
• Thomson Reuters Star Mine Ranked No. 2 – Honor for Analysts in Raw Materials Industry in Hong Kong and China in 2013
• DHL/South China Morning Post Hong Kong Business Awards 2013 : Outstanding Chinese Company Award
• International Academy of Communications Arts and Sciences 27th Annual Celebration of the World’s Best Annual Reports : Bronze Winner of the 2013 International ARC Awards
• The Hong Kong Management Association Best Annual Report Awards: Citation for Corporate Governance Disclosure
• Shanghai Stock Exchange Excellent Enterprise for “Management Discussion and Analysis” Disclosure in 2012 Annual Report
• China Central Depository & Clearing Co., Ltd. Excellent Member in National Interbank Bond Market in 2012
• Shanghai Clearing House Excellent Clearing Member for Net Clearing of Spot Trading in 2012
• Shanghai Clearing House Excellent Clearing Member in 2012
• Shanghai Clearing House Excellent Settlement Member in 2012
• The Export-Import Bank of China Excellent Underwriter of Financial Bonds in 2013
• China Securities Journal Honor for 2013 Gold Bull Analysts in China Securities Industry : Top 5 Gold Bull Research Team
• Shanghai Securities News 2012 Brand Value Ranking of Securities and Futures Market in China : Award for Comprehensive Management Capabilities of the Year
• Shanghai Securities News Award for Excellent Investment Bank Team of the Year
• Shanghai Securities News Award for Best Securities Brokerage in China of the Year
• Securities Times Honor for Best Wealth Management Institution in China in 2013 – “Best Securities Brokerage in China”
• Securities Daily “Golden Key” Award for the 9th Annual Conference of China Securities Market
• New Fortune The 7th New Fortune Best Investment Bank
• New Fortune The 9th New Fortune Gold Medal for Board Secretary
• Money Week 2013 Best Securities Firm in China
• Money Week 2013 Best Investment Bank of China Securities Firms
• Money Week 2013 Best Securities Firm for Margin Trading in China
• the Judging Panel of China Wealth Management “Golden Finger” Award Best Wealth Management Securities Firm of the YearCSI
• Asiamoney Hong Kong Best Sales Person No. 1
• Asiamoney Hong Kong Best Analyst (A-share) No. 2
• Hong Kong Council of Social Service Caring Company Award for Seven Consecutive Years
• Asiamoney Most Independent Research Brokerage for Asia (ex-Australia & Japan)
• Asiamoney Best Overall Brokerage in Asia (ex-Australia & Japan) for Combined Regional Research & Sales
• Greenwich Associates No.1 Asian Equity Research (as voted by Asian, European and US fund managers)
• AsianInvestors Annual Service Provider Awards 2013 : Best Broker for Sales Trading
• AsianInvestors Annual Service Provider Awards 2013 : Best Broker for Liquidity
• AsianInvestors Annual Service Provider Awards 2013 : Best Agency-only Broker
• Money Week 2012 China’s Financial Brand “Golden Elephant” Award – “2012 China’s Top Ten Financial Brand Public Service Projects”
• Shanghai Stock Exchange “Guiding Rational Investment” Excellent Securities Branch for the Year 2012 (Hangzhou Shuguang Road Securities Branch, now renamed as “Hangzhou Hangda Road Securities Branch”)
• Forbes 2013 Forbes Best China PE Investment Firm
• Zero2IPO Group China Equity Investment Annual Ranking for 2013 : Ranked No. 16 – Top 50 China Private Equity Investment Institutions (Domestic) for 2013
• Zero2IPO Group China Equity Investment Annual Ranking for 2013 : Top 5 Direct Investment Companies of China Securities Firms for 2013
• 21st Century Media Best Direct Investment of Securities Firm for 2013
• Shanghai Futures Exchange Excellent Analyst Award: Best Analyst in Precious Metals/ Best Analyst in Energy/ Best Analyst in Steel
• Zhengzhou Commodity Exchange Best White Sugar Analyst
• Shanghai Securities News Ranked No. 1 – Top 10 Futures Companies
• Shanghai Securities News Ranked No. 3 – Best Analyst of Stock Index Futures
• Securities Times Derivatives Wealth Management Expert Top 10 Industry Leaders
• Securities Times, Futures Daily The 6th Best Futures Operators and Best Futures Analyst Award of China : Ranked No. 1 – Best Service Award for Financial Futures
• Guangdong Industrial Cooperation Association National Brand in Guangdong Province

Environmental Metrics

ESG Focus Areas

• Responsible Investment
• Green Finance
• Carbon Neutrality
• Sustainable Development
• Rural Revitalization

Environmental Achievements

• Reduced energy consumption by 3.74% in Shenzhen office building despite a 20% increase in employees.
• Replaced over 9,000 traditional lamps with LED lamps in Beijing headquarters, expecting 250,000 kWh electricity savings annually.
• Implemented energy consumption management system in Beijing data center, aiming for further reductions.
• Improved water recycling efficiency in Beijing headquarters building.

Social Achievements

• Donated RMB 55.97 million for public interest, RMB 50.47 million for rural revitalization.
• Completed construction of a dormitory building for Gaoguan Middle School in Gansu Province.
• Launched a teacher capability enhancement program in Jishishan County.
• Completed one IPO and three refinancing projects for enterprises in poverty-stricken areas, raising RMB 11.1 billion.
• CITIC Futures invested in "insurance + futures" project in Yuanyang County, Yunnan Province.

Governance Achievements

• Renamed the "Strategic Planning Committee" to "Strategic Planning and ESG Committee".
• Issued the "Responsible Investment Statement of CITIC Securities Company Limited".
• MSCI ESG rating upgraded to BBB.

Climate Goals & Targets

Environmental Challenges

• Global economic slowdown with high inflation and potential recession in developed economies.
• Domestic economic pressure from shrinking demand, supply shock, and weakening expectations.
• Increasing credit risks associated with financing businesses and fixed income investments, particularly in urban investment and local government financing.
• Market risks associated with the growth of credit derivatives, bulk commodities, foreign exchange, and other new businesses.
• Increased probability of "black swan" and "grey rhino" events.

Mitigation Strategies

• Strengthened unified management of domestic and overseas capitals.
• Improved overall capital allocation efficiency.
• Explored new financing products and models.
• Implemented comprehensive risk management mechanism and internal control processes.
• Improved concentration risk management system and risk early warning management mechanism.
• Strengthened ESG governance structure and risk management.

Supply Chain Management

Responsible Procurement

• Prioritizes equipment and materials that are reliable, energy efficient and environmentally friendly.
• Requires suppliers to have ISO 14001 certification.

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• CITIC Securities Xingyun No. 81 ESG Collective Asset Management Plan
• ESG index-linked structured deposits
• Green financial-themed bank wealth management products
• China Bond-CITIC Securities ESG Selected Credit Bond Index and corresponding income certificate product
• First carbon-neutral index-linked income certificate product

Awards & Recognition

• MSCI ESG rating of BBB
• CDP Climate Change Questionnaire rating of B
• Upgraded Moody’s ESG rating of CIS-2 neutral
• 2021 Excellent Member Award of Shanghai Environment and Energy Exchange

Environmental Metrics

ESG Focus Areas

• Green Finance
• Promoting Prosperity for All
• High-Quality Economic Development
• Digital and Intelligent Technology
• Sound and High-level Governance
• Green Development
• Social Welfare
• Talent Development

Environmental Achievements

• Reduced GHG emissions (Scope 1 and 2) to 27,270.95 tons in 2023 from 32,997.63 tons in 2022
• Achieved 30% clean energy use in the Beijing headquarters building in 2023
• 100% compliant disposal of hazardous waste in 2023

Social Achievements

• Launched asset management arm in November 2023
• Underwrote 27 rural revitalization bonds with a fundraising scale of RMB 72.901 billion in 2023
• Provided price insurance for 87,400 farmers through 95 Insurance + Futures projects in 2023
• Made RMB 55.17 million of external donations in 2023, with RMB 54.23 million invested in rural revitalization
• 100% employee training coverage with an average of 119.89 training hours per employee

Governance Achievements

• Established a relatively sound ESG governance structure with the Development Strategy and ESG Committee under the Board of Directors
• 100% coverage for anti-money laundering and professional integrity training
• Overall customer satisfaction rate of 99.35%

Climate Goals & Targets

Environmental Challenges

• Climate change risks (physical, transition, policy, market, reputation, technology)
• ESG risks in supply chain

Mitigation Strategies

• Incorporates climate change into its risk management system
• ESG factors incorporated into due diligence, risk approval, and follow-up management
• Developed green bond-linked appetite indicators
• Supply chain sustainability risk assessment

Supply Chain Management

Responsible Procurement

• Prioritizes suppliers with sustainable policies
• Prefers energy-efficient and environmental-friendly materials
• Requires ISO 14001 certification from suppliers
• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Rising sea levels

Transition Risks

• Policy and regulatory changes
• Market shifts

Opportunities

• Green finance business
• Sustainable investments

Reporting Standards

Frameworks Used: HKEx ESG Reporting Guide, Self-discipline Regulatory Guidelines No. 1 (SSE), Environmental Information Disclosure Guidelines of Financial institutions in Shenzhen, TCFD

Certifications: ISO 27001

Awards & Recognition

• MSCI ESG Rating of "A"
• WIND ESG rating of "A"
• CDP Climate Change Questionnaire score of "B"
• IFF Global Green Finance Award for Innovation