Climate Change Data

Environmental Metrics

ESG Focus Areas

• Emissions Management
• Waste Management
• Use of Resources
• Green Operation
• Response to Climate Change
• Employment and Labour Practices
• Occupational Training and Development
• Health and Safety
• Supply Chain Management
• Quality Services
• Research and Development
• Respect for Intellectual Property Rights
• Information Security and Privacy Protection
• Anti-corruption
• Community Investment

Environmental Achievements

• Reduced exhaust emissions through regular vehicle inspections and maintenance.
• Implemented energy-saving measures in the office, including using high-energy-efficient lamps and encouraging employees to turn off unnecessary electronic equipment.
• Implemented water conservation measures, including putting up water conservation signs and conducting regular leakage tests.
• Reduced paper consumption through the use of electronic communication systems and encouraging employees to print in black and white and double-sided.

Social Achievements

• Provided equal opportunities for all employees, regardless of gender, ethnicity, background, religion, colour, age, marital status, family status, retirement, physical conditions, pregnancy, political connection and sexual orientation.
• Offered competitive remuneration and promotion packages, including basic fixed wages, performance bonuses and other welfare allowance packages.
• Provided a wide range of welfare and benefits to employees, including social insurance, free physical examinations, marriage and childbirth gifts, sickness condolences, and birthday and holiday benefits.
• Conducted various training programs for employees, totaling 8,012 hours in 2020.
• Maintained a safe working environment with no work-related accidents or fatalities in the past three years.

Governance Achievements

• Established a sound intellectual property management system and strictly abided by the laws and regulations relating to intellectual property rights.
• Obtained ISO 27001:2013 information security management system certification.
• Developed anti-corruption business conduct codes to provide guidelines and rules to all employees.
• Established a whistleblower hotline to report any acts or situations that may violate the anti-corruption policies.

Climate Goals & Targets

Environmental Challenges

• Potential climate change related risks, although none were significantly relevant to the business in 2020.
• Customer complaints mainly related to the nature of digital right goods not applicable to the return and exchange policy.

Mitigation Strategies

• Formulated relevant emergency management systems to improve employees’ ability to deal with emergencies related to climate change.
• Established a legal team to identify and monitor climate-related litigation and related legal risks.
• Formulated a complete customer complaint handling process to ensure the legitimate rights and interests of customers.

Supply Chain Management

Supplier Audits: Annual review of suppliers.

Responsible Procurement

• Selection of suppliers based on factors including reputation, qualifications, company strength, delivery capabilities, product safety, product after-sales protection, technical capabilities, price advantages, and financial indicators.
• Prioritization of suppliers with internationally recognized standards or certifications related to environmental and social risk management.
• Preference for local suppliers or suppliers which are geographically closer or with convenient transportation to reduce carbon footprint.
• Promotion of green procurement.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Environmental, Social and Governance Reporting Guide (Appendix 27 of Rules Governing the Listing of Securities issued by The Stock Exchange of Hong Kong Limited)

Certifications: ISO 27001:2013

Awards & Recognition

• Best SaaS Company in the 5th Golden Hong Kong Stock organised by Zhitong Caijing

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced exhaust emissions through regular vehicle checks and maintenance.
• Implemented energy-saving measures in the office (e.g., using high-energy-efficient lamps, setting up independently controllable lighting switches).

Social Achievements

• Provided various employee benefits (e.g., social security insurance contributions, free physical examinations, consolation money).
• Conducted extensive employee training programs (17 hours average per employee, 100% of employees trained).

Governance Achievements

• Established an ESG governance structure with clear responsibilities at each level.
• Implemented anti-corruption business conduct codes and provided regular anti-corruption training.

Climate Goals & Targets

Environmental Challenges

• Relatively higher employee turnover rate (17.80%), mainly due to customer service staff turnover.
• Climate change risks (physical risks, transition risks, regulatory risks).

Mitigation Strategies

• Regularly reviewing and adjusting remuneration based on employee performance.
• Developing relevant countermeasures to cope with extreme weather risks (e.g., backing up important documents to the cloud).
• Establishing a legal team to monitor changes in policies and regulations related to climate change.

Supply Chain Management

Responsible Procurement

• Screening suppliers based on market share, qualifications, delivery capability, service attitude, product safety, price advantages, and product quality.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Changing policies, laws and regulations, technological development and market trends

Reporting Standards

Frameworks Used: Appendix 27 of the Main Board Listing Rules issued by The Stock Exchange of Hong Kong Limited

Certifications: ISO27001:2013 information security management system certification

Awards & Recognition

• Best SaaS Company (Zhitong Caijing)
• Best IR Team (Zhitong Caijing)
• Best Cooperation Award (Tmall)
• Best Team Award (Tencent Video)
• Best Sales Award (Tencent Video)
• Most Valuable Partner (Tencent Video)
• User Growth Star (JD)
• CPS Dark Horse (JD)
• Sales Growth Award (JD)
• Five-Star Service Provider (Tmall)
• Excellent Ecological Partner in 2021 (Ping An Bank)
• 2021–2022 Excellent Software Enterprise (Wuhan Software Industry Association)
• 2021 GHRC Best HR Management Team (moka)

Environmental Metrics

ESG Focus Areas

• Business Ethics
• Quality Service
• Employee Development
• Green Operation Practices
• Community Engagement

Environmental Achievements

• Reduced nitrogen oxides emissions to 3.95 kg, sulfur oxides to 0.11 kg, and particulates to 0.29 kg.
• Total greenhouse gas emissions (Scope 1 and 2) of 279.72 tCO2e.

Social Achievements

• Maintained a 97.42% positive feedback rating for customer service.
• Provided training to 100% of employees, averaging 15.8 hours per employee.
• No work-related fatalities or lost workdays due to injury.

Governance Achievements

• Established an Anti-Corruption Business Conduct Code and Accountability Management System.
• Conducted anti-corruption training for all directors and 217 employees (1.5 hours per person).

Climate Goals & Targets

Environmental Challenges

• Increased water consumption and waste generation due to new business launches.
• Potential climate change risks such as natural disasters impacting server operations.

Mitigation Strategies

• Developing emergency management systems to address climate-related risks.
• Implementing water-saving measures and waste reduction initiatives.
• Planning to maintain or gradually reduce energy consumption, water consumption, greenhouse gas emissions, and waste generation intensity by 2025.

Supply Chain Management

Supplier Audits: Annual review of 1,617 suppliers.

Responsible Procurement

• Openness, fairness, and impartiality in supplier selection.
• Consideration of factors such as user numbers, market share, reputation, qualifications, company strength, delivery ability, product safety, after-sales guarantee, technical ability, price advantage, and financial indicators.
• Prioritization of suppliers with internationally recognized standards or certifications related to environmental and social risk management, and local suppliers or suppliers with close geographical locations or convenient transportation.

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters (earthquake, extreme high temperature, lake flooding, urban flooding) causing server interruption, system or network failure, office closure, or power outages.

Transition Risks

• Regulatory changes

Reporting Standards

Frameworks Used: Stock Exchange of Hong Kong Limited’s Environmental, Social and Governance Reporting Guide

Certifications: ISO/IEC 20000-1:2018

Awards & Recognition

• 7th Zhitong Caijing Listed Company Selection { Most Valuable Company in Consumer Sector
• Wuhan Software Industry Association — 2022 (4th) Top 100 Competitive Enterprises in Software Industry in Wuhan
• TikTok E-Commerce — Brand Service Provider 2022
• Wuhan Culture and Tourism Bureau — Excellent Cooperative Merchants
• Wuhan Federation of Industry and Commerce — 2022 Wuhan Top 100 Private Enterprises
• Ant Group — S1 Outstanding Contribution Award 2022
• Ant Group — Q1 New Banking Service Providers 2022
• Youku — Outstanding Contribution Partner Award 2022

Environmental Metrics

ESG Focus Areas

• Adhering to business ethics
• Providing high-quality services
• Empowering employee development
• Green corporate operations
• Community charity activities

Environmental Achievements

• Conducted a greenhouse gas inventory in Wuhan and Beijing offices, resulting in total greenhouse gas emissions of 322.58 tCO2e (Scope 1: 0.00 tCO2e, Scope 2: 322.58 tCO2e).

Social Achievements

• Provided free annual physical examinations for employees.
• Offered marriage and childbirth cash gifts, illness allowances, and birthday and holiday benefits.
• Organized quarterly team activities to enhance team cohesion.
• Held "Growth and Suggestion Day" activities for employee feedback.

Governance Achievements

• Established robust anti-corruption mechanisms, including an Anti-Corruption Business Conduct Code and training for all directors.
• Developed an information security management system compliant with GB/T22080-2016/ISO/IEC27001:2013.

Climate Goals & Targets

Environmental Challenges

• Rapid business growth making it difficult to predict environmental data changes and set specific quantitative targets.
• Increase in energy consumption intensity, water consumption intensity, and greenhouse gas emission intensity due to business growth and increased sites/equipment.

Mitigation Strategies

• Will review progress of environmental goals once business development stabilizes.
• Will continue to review the Group’s energy-saving measures to achieve goals.
• Will continue to improve the existing waste management policies.

Supply Chain Management

Supplier Audits: 2389 suppliers total

Responsible Procurement

• Supplier Management Measures and Procurement Management System; Commitment Letter for Transparent and Integrity-based Cooperation with suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters (earthquake, extreme high temperature, lake flooding, urban flooding) causing server interruption, system/network failure, office closure, power cuts.

Transition Risks

• Policy, regulatory updates, scientific and technological developments and market trends.

Reporting Standards

Frameworks Used: Environmental, Social and Governance Reporting Guide (Appendix C2 of the Main Board Listing Rules issued by The Stock Exchange of Hong Kong Limited)

Awards & Recognition

• China’s Top 100 Enterprises in Overall Strength (Internet Society of China)
• Top 100 Competitive Enterprises in Software and IT Services (China Electronic Information Industry Federation)
• Wuhan Top 100 Private Enterprises (Wuhan Federation of Industry and Commerce)
• Top 100 Enterprises in Wuhan/Top 100 Service Enterprises in Wuhan (Wuhan Enterprise Confederation)
• Top 100 Competitive Enterprises in Software Industry in Wuhan (Wuhan Software Industry Association)
• Best TMT Company (Zhitong Caijing)
• 618 Jingxiaozhi Mastermind Award for Best Operation (Jingdong)
• Collective Efforts for Ice-breaking Award (Huawei Video)