Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Completed transformation of all 8 units at Lidian Energy Group to achieve ultra-low emissions of air pollutants.
• Reduced annual fuel oil consumption by 1,035 tons at Yuedong Oilfield, reducing oxynitride and sulphur dioxide emissions.
• Cut approximately 2,000 tons of annual dust emissions at Xingcheng Special Steel by enclosing its stockyards.
• Achieved 96.5% recycling rate of processed water at XinYegang Steel.

Social Achievements

• Launched the CITIC Excellence Training Project, with over 700,000 staff participating in more than 6,000 training programs.
• Established a Mutual Help Fund providing over RMB400,000 to subsidise employees' children's education.
• Implemented a new labour contract policy at CITIC-Prudential, offering one-year fixed-term contracts initially.
• CITIC Telecom International received the Good MPF Employer award.

Governance Achievements

• Organised an ESG preparation training course for over 60 ESG staff.
• Established standardised systems, procedures, and specifications for all businesses at CITIC Securities.
• Implemented a new three-part customer service system at CITIC Heavy Industries.
• CITIC Heavy Industries established an efficient IT-based information and quality management platform.

Climate Goals & Targets

Environmental Challenges

• Meeting the regulatory requirements of The Stock Exchange of Hong Kong Limited for ESG reporting.
• Managing risks from high pollution, high energy consumption, and excess capacity sectors.

Mitigation Strategies

• Engaged Price Waterhouse Coopers (PWC) for insights on ESG reporting requirements.
• Developed a Work Plan for Environmental Data Statistics specifying calculation and reporting methods.
• Implemented a management system and measures to rank customers by category in high-risk sectors, gradually reducing loans to less efficient companies.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• CITIC Securities requires ISO9000, ISO14000 certifications from suppliers.

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

• Not disclosed

Awards & Recognition

• Green Model Enterprise award (Lidian Group)
• National Construction Industry Green Construction & Green Demonstration Project (CITIC Construction)
• Hong Kong Green Organisation Certifications (CITIC Telecom International)
• China’s Environmental and Social Responsibility Enterprise award (CITIC Envirotech)
• Beijing, Tianjin and Hebei Green Printing Excellent Press award (CITIC Press)

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Risk Management
• Low-Carbon Strategy
• Green Finance
• Village Revitalization
• Staff Development
• Customer Focus
• Supply Chain Management
• Anti-corruption
• Community Service

Environmental Achievements

• CITIC Dicastal’s Qinhuangdao aluminum wheels plant named a “Lighthouse Factory”, reducing production costs by 33%, increasing equipment efficiency by 21.4%, decreasing product defect rate by 20.9%, shortening delivery times by 37.9%, and improving energy usage efficiency by 39%
• CITIC Dicastal produces 650,000 tonnes of lightweight automotive components annually, saving 200 million litres in fuel consumption and reducing CO2 emissions by more than 500,000 tonnes per year compared to traditional steel components
• CITIC Bank’s green credit balance reached RMB205.425 billion by the end of 2021, a 122.80% increase from the previous year
• CITIC Special Steel’s carbon emissions intensity lower than China’s steel industry average
• CITIC Pacific Energy promotes green transformation of thermal power generation and accelerates development of clean energy business
• System-wide carbon emissions audit conducted to identify carbon footprint
• Development of a “two increases, one decrease” low-carbon strategy to meet carbon peaking and carbon neutrality goals

Social Achievements

• Total donations of RMB120 million to community projects
• More than RMB30 million contributed towards disaster relief in Henan flood
• MSCI upgraded CITIC’s ESG rating from BB to BBB
• CITIC Construction received the National Labour Day Award for the construction of the Chongli Prince Ice Town for the 2022 Beijing Winter Olympic Games
• CITIC Engineering won first prize in the Digital Construction (Construction Industry) Emerging Group of the Third China Industrial Internet Competition
• CITIC Heye was named a three-star green building
• CITIC Press received the Advanced Publishing Unit Award

Governance Achievements

• Strengthened Board’s strategic oversight of ESG initiatives
• Developed a systematic approach towards risk control at the organizational level
• Established a clear and structured risk governance system
• Implemented a risk technology system with a unified view and data management function
• Introduced a new motto: “compliance is everyone’s responsibility”
• Released Comprehensive Risk Management Measures incorporating climate and environment risks

Climate Goals & Targets

Environmental Challenges

• Climate change risks impacting customers, investments, and operations
• Supply chain disruptions due to extreme weather conditions
• Material loss to offshore oilfields and equipment incurred by extreme weather conditions

Mitigation Strategies

• Incorporated climate change-related risks into overall risk management system
• Developed measurable energy saving and emission reduction plans and targets
• CITIC Resource’s Yuedong Oilfield signed a marine environment forecasting agreement with National Marine Environmental Forecasting Center

Supply Chain Management

Supplier Audits: 94 suppliers accredited by CITIC headquarters (80 domestic, 14 overseas)

Responsible Procurement

• Embedded social responsibility principles into corporate tendering and procurement policies, contract terms, and assessment indicators

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Transition Risks

• Material changes in policy, law, technology, and market in the process of shifting to a low-carbon economy

Opportunities

• Green finance
• New energy vehicles
• Energy-saving technologies

Reporting Standards

Frameworks Used: Hong Kong Stock Exchange’s Environmental, Social and Governance Reporting Guidelines

Third-party Assurance: PricewaterhouseCoopers Zhong Tian Certified Public Accountants Limited (limited assurance)

Sustainable Products & Innovation

• Lightweight automotive components
• Niobium-containing steels

Awards & Recognition

• IFF2021 Global Green Finance Award (China Securities)
• World Economic Forum’s Lighthouse Factory (CITIC Dicastal)
• National Labour Day Award (CITIC Construction)
• First prize in the Digital Construction (Construction Industry) Emerging Group of the Third China Industrial Internet Competition (CITIC Engineering)
• Three-star green building (CITIC Heye)
• Advanced Publishing Unit Award (CITIC Press)
• Outstanding Contribution Award from the Beijing Chaoyang District Red Cross Society (CITIC Trust)
• Caring Company (CITIC Pacific)
• The Community Chest Award for Outstanding Service (CITIC Pacific)
• Sports Friendly corporate logo (CITIC Telecom International)
• National Quality Engineering Award (Sanfeng Environment)
• Excellence in Innovation Award at the Data Cloud Global Awards (CITIC Telecom International)
• China Quality Award nomination (Longping Hi-Tech)

Environmental Metrics

ESG Focus Areas

• Occupational health and safety
• Protection of customer rights and interest
• Comprehensive risk management
• Alignment with national strategies
• Energy conservation and emission reduction
• Green transformation and innovation
• Optimization of governance structure
• Responsible supply chain
• Training and career development
• Product and service quality
• Protection of employee rights and interest
• Integrity and business ethics
• Digitization and information security
• Sustainable finance
• Guiding effect for industry development
• Biodiversity conservation
• Support for rural revitalizations
• Community engagement and contributions
• Resource recycling and utilization
• Addressing climate changes
• Talent recruitment and retention

Environmental Achievements

• Recognized as a “Leading Enterprise in Industrial Carbon Peaking” and ranked first on the list in 2022
• 18% reduction in carbon emissions per unit of output by 2025, compared to 2020 levels
• CITIC Bank issued green loans amounting to RMB334.082 billion.
• CITIC Securities Asset Management successfully launched its first ESG/sustainable investment theme product. A total of 18 green-themed products were sold with a total amount of RMB3.1 billion.
• CITIC Securities underwrote a total of 129 green bonds (including asset-backed securities), with an underwriting size of RMB65.1 billion.
• CITIC Trust has created several green trust schemes such as water and equipment replacement projects in Zhangqiu District.
• CITIC Environment processed around 506.7 million tons of wastewater, supplied 46.31 million tons of water, and provided 22.09 million tons of reused, recycled water.
• CITIC Environment reduced COD emissions by 152,187 tons, ammonia nitrogen emissions by 9,602 tons, SS emissions by 108,247 tons, total phosphorus emissions by 1,408 tons, and total nitrogen emissions by 10,339 tons.

Social Achievements

• Launched the Golden Autumn Education initiative, which donated RMB221,000 to 76 employees struggling to pay for their children’s education
• Built a total of 27 women’s care rooms and mother-and-baby rooms
• Organised four summer daycare programmes for 145 employees and their children
• Set up youth apartments in Beijing and other cities in China
• Organised events for nearly 80 single employees from CITIC
• Allocated more than RMB4.2 million to provide care and assistance to employees who are facing difficulties or worked during the holidays and participated in disaster relief efforts.

Governance Achievements

• Established a three-tier ESG management system, comprising the Board of Directors, management, and implementation
• Issued the CITIC Limited ESG Guidelines
• Established a comprehensive supervision system that is led by disciplinary inspection and supervision
• Implemented a number of internal audit systems, including the Internal Audit Regulations, Management Regulations for Internal Audit Agencies of Subsidiaries, and Code of Ethics for Internal Audit Personnel
• Established a leadership group for overseas compliance management at the company’s headquarter
• Issued the Guiding Opinions on Strengthening Overseas Integrity and Compliance Management

Climate Goals & Targets

Environmental Challenges

• Ever more complicated ESG risks and challenges
• Weaknesses in the overall management, supervision, and inspection of our procurement processes
• Climate change risks

Mitigation Strategies

• Implementation of a sound organisational structure, robust institutional framework, and detailed targets and measures
• Launched a special rectification session to address weaknesses in procurement processes
• Developed a Reform Program on Centralised Procurement Management Mechanism
• Implementation of the TCFD disclosure framework
• Incorporate climate change risks management into the comprehensive risk management system

Supply Chain Management

Responsible Procurement

• Procurement Management Regulations
• Ethical Cooperation Agreement with suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, UN SDGs, TCFD

Certifications: ISO 9001, ISO 45001, ISO 14001, ISO 27001

Third-party Assurance: KPMG Huazhen LLP (limited assurance)

Sustainable Products & Innovation

• Green loans
• ESG/green-themed products
• Green leasing products
• Carbon-neutrality structured deposit products
• ESG bond and investment fund assets
• Green bonds
• Green trust schemes
• Low-carbon emission aluminum alloy components for automobile

Awards & Recognition

• Leader in China’s Industrial Carbon Peaking
• Best Employment Partner (School of Economics, Fudan University)
• Best Employer (Guanghua School of Management, Peking University)
• Many other awards listed in the report

Environmental Metrics

ESG Focus Areas

• Compliant operations
• Green development
• Technological innovation
• Employee management
• Customer service
• Community outreach
• Climate change
• Carbon peaking and carbon neutrality
• Comprehensive risk management system development
• Clean technology investment
• R&D investment

Environmental Achievements

• Achieved a 13% reduction in carbon emissions per unit of titanium dioxide compared with 2022 (CITIC Titanium)
• Total installed capacity of photovoltaic reached 123 MW, with an annual output of green electricity of 135 million kWh, realizing carbon reduction of about 78,000 tons (CITIC Pacific Special Steel)
• CITIC Bank’s green credit balance amounted to RMB459.022 billion, an increase of 37.40% over the end of the previous year
• CITIC Securities underwrote a total of 150 green bonds (including carbon neutrality bonds) in 2023, valued at RMB7.16 billion, ranking first in the industry
• CITIC Dicastal utilized 332,500 tons of green power aluminum in 2023
• CITIC Dicastal utilized 11,636 tons of recycled aluminum in 2023
• Jiangyin Lidian Phase V Expansion Project reduced carbon emissions by 20% and flue gas emissions by more than 20% (CITIC Pacific Energy)
• Overall iterative upgrading of Jiangsu Memstar’s heating boiler led to a 20% increase in thermal efficiency and a reduction in NOx emission concentration of more than 82% (CITIC Environment)
• Reclaimed water reuse project at the sewage treatment plant of the industrial park achieved 50% reuse of reclaimed water (CITIC Dicastal)

Social Achievements

• Launched the “CITIC Pacific Smart Elderly Care Platform” (CITIC Pacific Health)
• Launched the “Pacific Yi Hu Jia” mini WeChat program providing door-to-door medical care for elderly customers (CITIC Pacific Health)
• CITIC Bank opened 927,100 personal pension fund accounts, and the number of pension account users at the Bank reached 3,097,800
• CITIC Bank’s “CITIC Easy Loans” balance reached RMB545.076 billion, increasing by RMB99.084 billion over the previous year
• CITIC Securities invested a total of RMB 42.297 billion in green bonds and rural revitalisation bonds in its own asset management portfolio
• CSC Financial provided around RMB5.523 billion in risk protection for farmers and businesses

Governance Achievements

• Established a three-tier ESG management system comprising the Board of Directors, the management, and implementation
• Implemented a comprehensive supervision system for anti-corruption
• Adopted the CITIC Limited Anti-Corruption Code of Conduct
• Improved compliance rules and fulfilled requirements for compliance control
• Improved accountability and supervision mechanisms
• Fostered compliance culture through training campaigns

Climate Goals & Targets

Environmental Challenges

• Climate change risks
• Supply chain disruptions
• Maintaining high ethical and professional standards in a complicated and rapidly changing world economic landscape
• Preventing bribery, extortion, fraud and money laundering, and anti-unfair competition
• Protecting against all forms of corruption and breaches of business ethics
• Managing risks associated with overseas operations

Mitigation Strategies

• Implemented focused enhancements to risk management mechanisms
• Established a comprehensive risk management system
• Strengthened financial risk management across subsidiaries
• Improved compliance rules and fulfilled requirements for compliance control
• Improved accountability and supervision mechanisms
• Fostered compliance culture through training campaigns
• Established an overseas integrity risk control system
• Provided clear guidelines within our overseas management framework to prohibit corruption
• Organized training sessions on topics like compliance risks of overseas operations and personnel

Supply Chain Management

Responsible Procurement

• Code of conduct
• Supplier sustainability requirements
• Green procurement practices

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Green finance

Reporting Standards

Frameworks Used: GRI Standards, HKEX ESG Reporting Guide, TCFD, UN Guiding Principles on Business and Human Rights, Equal Remuneration Convention

Certifications: ISO27001 (CITIC Securities, CSC Financial, CITIC-Prudential Life), ISO9001, ISO45001, ISO14001, ISO22000 and HACCP (Dah Chong Hong)

Third-party Assurance: KPMG Huazhen LLP (limited assurance procedures)

Sustainable Products & Innovation

• Green electrolytic aluminum
• Recycled aluminum
• High-strength niobium-containing steels
• Energy-efficient building solutions
• Low-carbon manufacturing process for aluminium car parts

Awards & Recognition

• Numerous awards across various subsidiaries and business units (see pages 12, 34, 66, 81)