Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Safety
• Pandemic Response
• Rural Revitalization

Environmental Achievements

• Achieved 100% coverage of energy-efficient LED lighting, saving 460 million kWh of electricity over the past five years.
• Replaced old central air conditioning units with new variable frequency modular units, achieving 15% energy savings.
• Widely used air source heat pumps and water heaters, replacing gas, oil, and electric boilers, achieving an average energy saving of 40%.
• Implemented a new direct-power door lock system in 1500 stores, reducing battery waste.
• Retrofitted over 100 boilers with patented low-nitrogen combustion technology, reducing NOx emissions.

Social Achievements

• Successfully completed the service guarantee tasks for the Beijing Winter Olympics and Paralympics.
• Maintained a stable safety record with no responsibility accidents.
• Provided accommodation and isolation facilities for medical personnel, quarantined individuals, and returning travelers.
• Implemented a “green room” initiative to reduce resource consumption.

Governance Achievements

• Completed the board and supervisory board's term elections.
• Conducted a three-month self-inspection and rectification of corporate governance.
• Revised the “Company's Interbank Debt Financing Instrument Information Disclosure Affairs Management System” and “Implementation Rules of the Board of Directors Audit Committee”.

Climate Goals & Targets

Environmental Challenges

• The impact of multiple rounds of repeated epidemics on travel and hotel operations.
• The risk of economic downturn affecting the profitability of the tourism industry.
• Risks associated with the expansion of franchised hotels.
• High fixed costs in the industry (depreciation, rent, labor, energy).

Mitigation Strategies

• Accelerated the pace of hotel openings (1800-2000 new hotels planned for 2022).
• Continued hotel upgrades and brand upgrades.
• Improved and upgraded the membership system.
• Implemented technological and management empowerment to improve operational efficiency.
• Maintained normalized pandemic prevention and control management.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• LED lighting
• Low-energy equipment
• Direct-power door locks
• Low-nitrogen combustion boilers

Awards & Recognition

• 2021 Annual Smart Innovation Hotel Group (New Beijing News)

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Rural Revitalization
• Social Responsibility

Environmental Achievements

• 100% LED lighting coverage, saving 460 million kWh of electricity and reducing CO2 emissions by 458,000 tons in the past five years.
• Replacement of old central air conditioning units with new variable frequency units, achieving 15% energy savings.
• Extensive use of air source heat pumps and water heaters, replacing gas, oil, and electric boilers, achieving an average energy saving of 40%.
• Development and promotion of battery-free door locks, reducing battery waste.
• Low-nitrogen emission transformation of over 100 boilers.
• Use of stone-plastic and wood-plastic materials for hotel renovation, reducing pollution and shortening construction time.

Social Achievements

• Providing accommodation for medical personnel and quarantined individuals during the pandemic.
• Providing support policies for franchisees.
• Purchasing poverty alleviation products for company canteens.
• Implementing various employee training programs.

Governance Achievements

• No changes in board members or senior management during the reporting period.
• Compliance with national laws and regulations.

Climate Goals & Targets

Environmental Challenges

• Impact of the COVID-19 pandemic on the tourism and hotel industry.
• Fluctuations in the global economic environment.
• Regional economic recovery disparities due to the pandemic.
• Risks associated with franchise expansion.
• High fixed costs in the hotel industry.

Mitigation Strategies

• Focusing on four core strategies: development first, product as king, member-centric, and efficiency empowerment.
• Accelerating the pace of hotel opening, focusing on mid-to-high-end hotels and penetrating the sinking market.
• Promoting brand and product upgrades.
• Strengthening operational profitability.
• Improving the member system.
• Advancing digital transformation and intelligent technology application.
• Maintaining normalized epidemic prevention and control.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Energy-efficient products and equipment.
• Battery-free door locks.
• Low-nitrogen emission boilers.

Awards & Recognition

• 如家商旅酒店 and 如家酒店 selected as 'ABN Index Mid-range Hotel 2021-2022 Influential Brand TOP10'
• 如家商旅酒店 and 如家酒店 selected as 'ABN Index Economy Hotel 2021-2022 Influential Brand TOP10'

Environmental Metrics

ESG Focus Areas

• Energy conservation and emission reduction
• Rural revitalization

Environmental Achievements

• Invested 9.5 million yuan in building environmentally friendly rooms using prefabricated decoration technology and environmentally friendly materials, reducing cement usage by 120 kg per room.
• Implemented intelligent upgrades to equipment, saving an estimated 268,000 kWh of electricity annually.
• Promoted the use of green new energy equipment, replacing gas and electric boilers with energy-saving heat pump water heaters in 23 stores and adding solar water heating systems in 5 stores.
• Installed intelligent anti-scaling machines in 8 stores, improving energy efficiency.

Social Achievements

• Increased support for rural revitalization in Yan Zhuang Village, focusing on industrial, organizational, talent, cultural, and ecological revitalization.
• Encouraged affiliated companies to purchase agricultural products from Yan Zhuang Village to address overstocking and increase collective income.
• Organized over ten educational study tours in Yan Zhuang Village, attracting over 400 participants.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Macroeconomic fluctuations
• Market competition and expansion risks
• Rising operating costs
• Franchisee management risks
• Impairment risks of goodwill and trademarks
• Credit impairment risks
• Asset impairment risks

Mitigation Strategies

• Focusing on core strategies: development first, product as king, member-centric, efficiency empowerment.
• Expanding into mid-to-high-end hotels and penetrating the sinking market.
• Upgrading existing hotels and iterating brands.
• Improving member engagement and loyalty.
• Accelerating the construction of the group's online and digital capabilities.
• Promoting the construction of high-end and luxury hotels.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Using prefabricated decoration technology and environmentally friendly materials.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Environmentally friendly rooms using prefabricated decoration technology and environmentally friendly materials.

Awards & Recognition

• 2022 Hotel Industry Golden Tripod Award
• 2022 Top 60 Chinese Hotel Groups
• 2023 Best Cultural Tourism Accommodation Development Group