Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Management
• Safety
• Employee Well-being
• Community Investment
• Cultural Protection
• Public Health
• Supply Chain Sustainability
• Responsible Procurement
• Governance

Environmental Achievements

• 85% of eligible Club Med resorts hold Green Globe certification.
• Atlantis Sanya was awarded the national three-star green building certification, and the Earth Check copper certification for its environmental-friendly operation capabilities.
• Implementation of a plan to avoid the use of disposable plastic products in Club Med resorts.
• Goal to ban all disposable plastic products in all Club Med resorts by 2021.

Social Achievements

• Launched a new mobile application “My Happy Days”, which facilitates customer planning of event schedules.
• Atlantis Sanya applied facial recognition technology to achieve fast entry and self-service check-in, reducing tourists’ time for ticket exchange at ticket windows by 10,476 hours accumulatively throughout the year.
• Green Farmer project, Club Med accumulatively purchased more than 240 tons of agro-ecological products from local farmers in eight resorts worldwide. More than 500 farmers have benefited from our project.
• Various forms of public welfare activities around sustainable community development, employee volunteer activities, health poverty alleviation and educational poverty alleviation.

Governance Achievements

• Established a three-level governance structure consisting of the Board of Directors, the ESG Committee, and the ESG Working Group.
• Established the Environment, Health, Safety and Customer Service and Product Quality Supervision and Management Department.
• Formulated the Guidelines for Comprehensive Risk Management (Provisional).

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Extreme weather events impacting resorts
• Food safety risks
• Maintaining high customer satisfaction
• Managing risks related to public health incidents

Mitigation Strategies

• Established strict safety operation procedures
• Developed EHSQ management system
• Implemented risk mapping and incident prevention mechanisms
• Regular safety training and emergency drills
• HACCP certification and food safety training
• Customer satisfaction surveys and complaint handling mechanisms
• Pandemic prevention and control plans
• Global procurement of medical supplies during COVID-19 outbreak

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable purchasing charter
• Prioritization of certified purchases (organic cotton, eco-certified cleaning products, FSC/PEFC certified paper)
• Green Farmers program supporting local agriculture

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: HKEX Environmental, Social and Governance Reporting Guide

Certifications: Green Globe, BREEAM, EarthCheck, National three-star green building certification (Atlantis Sanya)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Numerous awards and recognitions for resorts and the Group (see Appendix 1)

Environmental Metrics

ESG Focus Areas

• Pandemic response
• Responsible operation
• Diversity and equality
• Environmental protection
• Community development
• Sustainable procurement
• Climate change mitigation

Environmental Achievements

• 83% of Club Med resorts obtained Green Globe certificates
• Atlantis Sanya was awarded LEED Gold certification and passed Earth Check Silver certification
• Taicang FOLIDAY Town received two Certificates of Green Building Design Label (Two-Star)
• Photovoltaic power capacity reached 1,715,000 kWh, a 79.7% increase from 2019
• Atlantis Sanya's annual energy cost decreased by 17.8% compared to 2019, with electricity consumption down 6.94%, water consumption down 18.3%, and gas consumption down 3.3% and 17% respectively.
• 74% of general waste collected by Club Med was recycled and reused

Social Achievements

• Launched FOLIDAY-iCARE service management system to enhance customer experience
• Thomas Cook Lifestyle Platform served 386,000 members
• Donated over 70,000 masks and 30,000 other protective equipment worldwide
• Provided free guest rooms to medical staff
• Total training hours for employees reached 391,065 hours (100% participation)
• Zero work-related deaths occurred
• Over 95% first call settlement rate for complaints within 24 hours
• Continued to carry out “Countryside Doctors” poverty alleviation program
• Club Med donated to build sport schools at the villages where it operates to help the vulnerable children

Governance Achievements

• 100% coverage rate of employee integrity education
• No corruption cases filed and concluded in the Group
• Formulated anti-corruption measures and a code of conduct
• Established a whistle-blowing mechanism

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic severely impacted the global tourism industry
• Climate change risks (physical and transitional)
• Supply chain disruptions

Mitigation Strategies

• Implemented comprehensive pandemic prevention and control measures
• Identified and mitigated 11 climate change risks and 5 opportunities
• Developed alternative sourcing strategies
• Implemented responsible procurement practices

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Code of Conduct for Fosun Tourism’s Suppliers
• Prioritization of certified purchases (e.g., FSC-certified paper)
• Animal Welfare Policy for suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Hurricanes/typhoons
• Floods
• Rising average temperature
• Rising sea level
• Shortage of ice and snow resources
• Changes in precipitation and weather patterns

Transition Risks

• Increased greenhouse gas emission prices
• Government regulations
• Technological changes
• Changing customer behaviors
• Reputational risks

Opportunities

• Resource efficiency improvements
• Renewable energy adoption
• Development of low-emission products and services
• Market expansion
• Enhanced infrastructure

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide

Certifications: Green Globe, LEED Gold, Earth Check Silver

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

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

Initiatives contributing to various SDGs as detailed in Appendix 5.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Numerous awards for Atlantis Sanya and Club Med resorts (listed in the report)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Infectious Diseases

Environmental Achievements

• Set a target to reduce carbon emission intensity by 40% (GHG standard range 1&2) and energy consumption intensity by 30% by 2030 (base year: 2019), and maximize the use of renewable energy.

Social Achievements

• Activated epidemic prevention and control strategies in hotels and resorts to ensure the safety of employees and customers; Club Med implemented Safe Together and POSI projects; Atlantis served as a quarantine hotel with zero infections among staff and visitors during the Sanya lockdown.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Climate action failure leading to increased extreme weather, natural disasters, sea-level rise, supply chain disruptions, and stakeholder concerns.
• Infectious diseases (like COVID-19) causing travel restrictions, lockdowns, and impacting operations, financial condition, and cash flow.

Mitigation Strategies

• Developing and implementing a climate strategy aligned with TCFD recommendations, including energy efficiency transition, clean energy use, and green low-carbon products; regular review of climate strategies, goals, and plans; collaboration with internal and external partners.
• Adhering to a globalization strategy, leveraging resources, and implementing epidemic prevention and control strategies in hotels and resorts; collaborating with partners like Ecolab and CCIC for safety and hygiene measures.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions and natural disasters, sea-level rise

Transition Risks

• Supply chain disruptions due to labor and product shortages

Opportunities

• Investing in clean technologies and achieving climate transition

Reporting Standards

Frameworks Used: TCFD

Certifications: POSI (Club Med)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Green and low-carbon products

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Responsible operation
• Care for the earth
• Diversity and equality
• Coordinated development
• Give back to society

Environmental Achievements

• Energy Consumption Intensity (by revenue) decreased by 21% compared to 2021
• GHG Emission Intensity (by revenue) decreased by 20% compared to 2021
• Freshwater Consumption Intensity (by revenue) decreased by 20% compared to 2021
• 97% of eligible Club Med resorts are Green Globe certified

Social Achievements

• Overall average customer satisfaction rate: 91.4%
• Completion rate of customer complaint handling: 100%
• Zero significant privacy data leakage case
• Employee training rate: 100%
• Fosun Tourism partners: 62, of which 30 are female partners, accounting for 48.4%
• Club Med local procurement proportion reached 89% and the proportion of local procurement in China reached 69.21%

Governance Achievements

• Selected as a constituent of the Hang Seng Corporate Sustainability Benchmark Index for two years in a row
• Earned the highest ESG rating –“AAA”- by MSCI in February 2023
• Established a governance structure to strengthen its ESG-related work
• Established the ESG Committee to assist the Board in overseeing and promoting the implementation of various ESG strategies
• Established the ESG Working Group to assist the Board in identifying and prioritizing significant issues

Climate Goals & Targets

Environmental Challenges

• Inadequate climate actions
• Infectious diseases
• Consumer behavior changes in the post-pandemic era

Mitigation Strategies

• Re-assessed and analyzed risks based on emerging risk identification results in 2021
• Identified two new emerging risks (inadequate climate actions and consumer behavior changes in the post-pandemic era)
• Conducted impact assessment and implemented corresponding mitigation and management
• Strengthened hygiene procedures in line with WHO recommendations

Supply Chain Management

Supplier Audits: 69% of key suppliers in China had taken ESG audited by the Group headquarters (2022)

Responsible Procurement

• ESG access review for suppliers
• Level and category-based supplier risk management
• ESG self-assessment questionnaire for suppliers
• ESG on-site review for suppliers
• Risk assessment
• On-site review
• Annual review
• Irregular review
• Assessment and improvement
• Supplier conference
• Supplier forum
• Quality supplier award
• Responsible procurement seminar
• Industry exchange
• ESG online sessions
• Materials sharing
• Regular communication and interaction
• Training and coaching

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity of extreme weather events such as typhoons, heat, and droughts
• Rising sea level
• Shortage of ice and snow resources caused by rising average temperature

Transition Risks

• Increase of price of greenhouse gas emissions
• Government authorization and regulation on existing products and services
• Change of customer behaviors in green consumption

Opportunities

• Low-emission alternative energy sources
• Replacement of existing product services with lower emission products and services
• Innovative low-emission products and services
• Integrating climate change elements into product development and service processes

Reporting Standards

Frameworks Used: GRI Standards

Certifications: Green Globe, EarthCheck, BREEAM, LEED

Awards & Recognition

• Hang Seng Corporate Sustainability Benchmark Index (A rating)
• MSCI ESG Rating (AAA)
• 2022 Excellent Employers of Luxury Hotels in the Tourism Services Industry (VERYEST.CN)