Climate Change Data

Environmental Metrics

ESG Focus Areas

• Responsible Development and Good Governance
• Shipping to Everywhere and Striving for Excellence
• Concerted Efforts in Mutual Development and Industrial Ecosystem
• Safety is the Foundation of Development
• Green Logistics, Green Mission
• Joint Prosperity and Development with Employees
• Good Deed for Society

Environmental Achievements

• Successfully passed the re-certification audit of environmental management system (GB/T24001)
• Reduced power consumption by modifying energy saving techniques and by reconstructing the relevant management systems (specific examples provided in the report)
• Eliminated 96 yellow-label vehicles and added 115 new electric forklifts and trailers, reducing waste gas emissions

Social Achievements

• Overall customer satisfaction was 93.32%, an increase of 0.12% from 93.20% of last year
• Successfully passed the review of its occupational health and safety system certification (GB/T28001). Zero work-related injuries and fatalities.
• Organized various employee activities (badminton competitions, football matches, etc.)
• Implemented a reasonable suggestions system to improve processes and reward employees
• Invested RMB 1 million in public welfare activities

Governance Achievements

• Further improved rules and regulations regarding anti-corruption and good governance. Introduced 8 new rules regarding discipline inspection and supervision.
• No legal proceedings were filed against the Company or its employees on corruption charges during 2017.
• Improved 14 regulations regarding recruitment, resignation, relocation and probation completion.

Climate Goals & Targets

Environmental Challenges

• New national standard GB1589, tightening regulation on vehicle overloading, posed challenges to transportation capacity and operating costs.
• Increasingly competitive automobile logistics market.
• Global energy shortage and natural resources depletion.

Mitigation Strategies

• Proactively innovated logistics solutions and leveraged big data and intelligence.
• Adjusted strategy and turned to waterway transportation to improve transportation efficiency.
• Implemented integrated management approach to energy and resources, centrally managing the Company’s consumption of gasoline and diesel resources through integrated refueling.
• Implemented a lean management plan to integrate management of environmental, quality and safety issues.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Access Management Process
• Supplier Annual Assessment Management Process
• Procurement Management Method
• Bidding Management Method
• Supplier Management Method

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Environmental, Social and Governance Reporting Guide (ESG Guide) published by the Stock Exchange of Hong Kong Limited

Certifications: ISO9001, IATF16949, GB/T24001, GB/T28001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• High-tech Enterprise certification in Chongqing
• First Innovation-Driven Model Enterprise by the Chongqing Enterprise Association
• Industry-University-Research Base of China Society of Logistics

Environmental Metrics

ESG Focus Areas

• Responsible Development and Good Governance
• Shipping to Everywhere and Striving for Excellence
• Concerted Efforts in Mutual Development and Industrial Ecosystem
• Safety as the Foundation of Development
• Green Logistics, Green Mission
• Joint Prosperity and Development with Employees
• Good Deed for Society

Environmental Achievements

• Reduced water consumption from 585,601 m3 in 2017 to 304,649 m3 in 2018.
• Reduced greenhouse gas emissions (Category 1 only) from 140,435 tCO2e in 2017 to 116,766 tCO2e in 2018.
• Reduced waste engine oil from 5,215 kg in 2017 to 2,616 kg in 2018.
• Replacement of 700 lighting fixtures in Warehouses B and C to improve energy efficiency and eliminate safety risks.
• Research on the application of Li-Fe batteries to replace Lead-acid batteries in forklifts, potentially reducing costs by approximately RMB 2,400,000 annually.

Social Achievements

• Organized a series of training and certification programs linked to employee promotion, with a total of 246,000 training hours.
• Held the first skill competition involving over 2,000 employees.
• Implemented the “four can” reform in recruitment, cadre system, remuneration system, and organization structure.
• Improved employee satisfaction score to 95.38 points, increasing by 2.06 points.

Governance Achievements

• Established an ESG working group to push forward ESG management work.
• Drafted a series of internal policies to restrain employee conduct and promote clean governance standards.
• Organized a series of educational events themed “clean professional practice” and drafted a series of micro-corruption countering plans.
• No legal proceedings were filed against the Company or its employees on corruption charges during 2018.

Climate Goals & Targets

Environmental Challenges

• New national standard GB1589 tightened regulation on vehicle overloading and truck emission, posing challenges to transportation capacity and operating costs.
• Stagnating automobile market and rising demand for cost reduction.

Mitigation Strategies

• Proactively innovated logistics solutions and aggressively leveraged big data and intelligence.
• Exploration of innovative logistics modes, including counter flow transport, LOC mode, and mixed transport.
• Implementation of the “efficiency doubling” project to improve management efficiency.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Access Management Process, Supplier Replacement Management Process, Supplier Annual Assessment Management Process, Procurement Management Method, Bidding Management Method, and Supplier Management Method

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Appendix 27: Environmental, Social and Governance Reporting Guide (ESG Guide) of the Rules Regarding the Listing of Securities (Listing Rules) for Main Board published by the Stock Exchange of Hong Kong Limited

Certifications: ISO9001, IATF16949, GB/T 19001, GB/T 24001, GB/T 28001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• “Integration of Informatization and Industrialization in management system” certification
• Excellent grade: AAA from the Transportation Management Center of Liangjiang New Area, Chongqing
• Ford Asia “Safety Innovation Award”