Climate Change Data

Environmental Metrics

Environmental Challenges

• Impacts of the COVID-19 pandemic on the film industry and consumer market, resulting in a year-over-year decrease in revenue from film and drama series content.
• Closure of offline stores during the COVID-19 pandemic affecting IP merchandising and commercialization segment results.

Mitigation Strategies

• Promoting synergy between live events and offline viewing to maintain stable revenue from the technology segment.
• Acquiring high-quality IPs and launching IP commercialized products continually to increase revenue from the IP merchandising and commercialization segment.
• Investing in high-quality content, innovations and customer value, focusing on creating high-quality content, building infrastructure in the cultural and entertainment industry, and enriching the pan-entertainment ecosystem.
• Improving operating efficiency and reducing costs to decrease administrative expenses.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Numerous awards at the 35th China Golden Rooster Awards

Environmental Metrics

ESG Focus Areas

• Responsible Governance
• Employee Management
• Product Responsibility
• Joint Efforts in Protecting the Ecological Environment

Environmental Achievements

• Reduced energy consumption through energy-saving renovations and paperless operations.
• Launched electronic commemorative tickets, replacing paper tickets for 99% of movies.

Social Achievements

• Launched the “Alibaba Pictures Management Trainee” program, selecting 16 trainees.
• Implemented the “Tao Piao Piao Starlight” charity screening program, holding 1000 screenings in rural areas.
• Launched accessible theatre projects, providing accessible screenings for visually impaired audiences.
• Achieved 100% labor contract signing rate among 1,455 full-time employees.

Governance Achievements

• Established a comprehensive risk control and management system with a “three lines of defense” structure.
• Conducted eight anti-corruption training sessions with 477 employees.
• Implemented a sound data security and privacy protection system, reporting no information security or data breach incidents.
• MSCI ESG rating upgraded to A.

Climate Goals & Targets

Environmental Challenges

• Climate-related risks such as typhoons, rainstorms, and floods impacting film production and supply chains.
• Potential risks related to data security and privacy.

Mitigation Strategies

• Improved weather monitoring and early warning systems, emergency plans for natural disasters, and insurance coverage for crews.
• Implemented stringent data security measures and a comprehensive data compliance organization system.

Supply Chain Management

Responsible Procurement

• ESG Code of Conduct for Suppliers
• 3C and RoHS certifications prioritization

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons, rainstorms, floods

Opportunities

• Technological upgrading of businesses, green transition in areas such as paperless operation and digitalization.

Reporting Standards

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

Certifications: ISO 27001 (Alibaba Cloud), ISO 27701 (Alibaba Cloud)

Sustainable Products & Innovation

• Electronic commemorative tickets
• Digital human Leah

Awards & Recognition

• “Most Social Responsible Listed Company” at the 8th Zhitong Caijing Listed Company Awards
• “Velveteen Award” for “Tao Piao Piao Starlight” at the 7th Corporate Social Responsibility Development Forum