Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Environmental Performance
• Social Performance
• Governance
• Human Rights
• Labor Practices

Environmental Achievements

• Reduced oil consumption per TEU by 7% year-on-year, saving RMB1 billion in fuel costs.
• Reduced sulfur dioxide emissions by 2316.6 tons by adopting 106,278 tons of low-sulfur fuel.

Social Achievements

• Successfully evacuated 559 stranded Chinese citizens from Libya.
• Successfully rescued 10 crew members who fell into the water from a Korean cargo ship.
• Provided RMB12 million to Luolong County and RMB3 million each to Ruanling and Anhua Counties for poverty alleviation.
• Received the honorable title of National Advanced Group for Poverty-alleviation and Development and the China Charity Award for a fourth consecutive time.

Governance Achievements

• Established a Board of Directors, marking a significant step towards establishing a modern enterprise system.

Climate Goals & Targets

Environmental Challenges

• Global economic downturn and continuous depression in the shipping market.
• Unreasonable fleet structure and need for improved management and marketing abilities.
• Increased safety and environmental protection costs.
• Uncertainties in the global economy and shipping industry.
• Market fluctuations and imbalances in supply and demand.

Mitigation Strategies

• Implemented scientific development outlook, deepened internal reforms, and enhanced management innovation.
• Optimized fleet structure, reasonably arranged the proportion of self-owned and leased ships.
• Enhanced VIP customer strategy and formed strategic alliances.
• Implemented comprehensive risk management and Global Compact.
• Adjusted and optimized development of main business, improved technology and management innovation ability, and optimized product structure.

Supply Chain Management

Responsible Procurement

• Priority given to local suppliers under same conditions.
• Due diligence review of suppliers considering social responsibility performance.

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons and bad weather affecting shipping safety and port operations.

Transition Risks

• New international conventions and regulations to tackle climate change.

Opportunities

• R&D of emission reduction technologies and improvement of related equipment.

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Guidelines 2006, ISO26000 Guidance on Social Responsibility

Certifications: ISO9000, ISO14000, OHSAS18000, ISM, SPS

Third-party Assurance: Det Norske Veritas (DNV)

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 4: Quality Education
• Goal 5: Gender Equality
• Goal 6: Clean Water and Sanitation
• Goal 7: Affordable and Clean Energy
• Goal 13: Climate Action

COSCO Group's initiatives contribute to these goals through poverty alleviation, educational support, gender equality policies, environmental sustainability efforts, and energy conservation and emission reduction.

Awards & Recognition

• Social Responsibility Award for Listed Companies
• China Charity Award
• National Model Organization for Poverty Alleviation and Development
• Golden Bee Excellent CSR Award
• Best Corporate Social Responsibility Award
• Excellent Implementation Team for National Scientific and Technological Plan
• Top 100 Chinese Enterprises for Corporate Social Responsibility
• Fortune Global 500 List

Environmental Metrics

ESG Focus Areas

• Economic performance
• Energy conservation and emission reduction
• Environmental protection
• Effluent and waste treatment
• Employee training and growth
• Occupational health and safety
• Employee rights
• Employee care and assistance
• Contribution to public welfare
• Compliance
• Anti-corruption
• Supplier Management
• Customer service
• Dual-brand effects and synergies
• Indirect economic impacts
• Biodiversity
• Climate change and response
• Greenhouse gas emissions

Environmental Achievements

• Reduced marine fuel consumption intensity by 4.80% from 2018. Reduced carbon dioxide emission intensity by 4.83% from the previous year. Reduced emission intensities of NOx and SOx by 4.65% and 3.57% respectively over the previous year.
• Completed 16 gantry crane oil-to-electricity projects, saving nearly 200 tons of carbon emissions.
• Realized 82,845.47 tons seawater desalination (COSCO SHIPPING Lines), increased by 80% compared to 2018. OOIL realized 183,350 tons seawater desalination.
• Reduced fresh water consumption by 7% (COSCO SHIPPING Lines) compared with the previous year.

Social Achievements

• Launched “My Reefer” service on e-commerce platform, providing customers with real-time information on reefer containers.
• Donated RMB 24.06 million for social causes.
• Improved customer satisfaction index to 88.68 in 2019 from 88.03 in 2018.
• Reduced number of customer complaints by 71% compared with the same period in 2018.

Governance Achievements

• Established a sound anti-corruption management mechanism, including management system and policies, reporting channel, regular supervision and audits, as well as anti-corruption activities and training.
• Signed letters of commitment and responsibility on anti-corruption and probity with subsidiaries.
• Implemented strict supplier assessment and audit procedures.
• Integrated ESG-related risks into the existing risk management and control framework.

Climate Goals & Targets

Environmental Challenges

• Severe challenges in the global economic and trade situation, with economic growth hitting a new low and slowed year-on-year demand growth in container shipping.
• Uncertainty brought about by China-U.S. trade friction.
• Impact of climate change (extreme weather events, typhoon).
• Pirate attacks in the Middle East and Indian Ocean.

Mitigation Strategies

• Adhered to the guiding principle of “outperform the market, drive innovation, and lead the era” and the Ocean & Plus strategy.
• Optimized capacity allocation structure and cargo structure to deal with uncertainty from trade friction.
• Actively optimized the global terminal network and improved operation quality.
• Implemented ship deceleration plan at ports to reduce emissions.
• Used low-sulfur fuel and installed scrubbers on vessels to meet IMO 2020 regulations.
• Employed third-party armed escort teams for ships in piracy-prone areas.
• Formulated typhoon and flood prevention plans for container and port businesses.
• Formulated Operation Procedures for the Acceptance and Carriage Confirmation of Dangerous Goods.

Supply Chain Management

Supplier Audits: At least once a year

Responsible Procurement

• Green supply chain management
• Supplier assessment based on ESG performance
• Zero tolerance policy towards suppliers causing safety incidents
• Supplier training and capacity building

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Typhoons

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards 2016 (Core option), HKEx ESG Guide

Certifications: ISO 14001, ISO 50001, ISO 45001

Third-party Assurance: DNV GL

Sustainable Products & Innovation

• Low energy consumption and low emission ships
• Special containers (ultrahigh coal container, ultrahigh bulk grain container)

Awards & Recognition

• Green Shipping Award (OOCL)
• International environmental protection awards (COSCO SHIPPING Lines)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced fuel consumption by 0.47% from 2019 to 4.93 million tons in 2020.
• Successfully met IMO 2020 sulfur emission limits.
• Achieved zero oil spills.

Social Achievements

• Reduced customer dissatisfaction feedback by 40%.
• Maintained a punctual rate in the top two of the industry.
• Provided poverty alleviation funds of 10.14 million yuan.
• Successfully completed crew shifts for 13,000 members amidst COVID-19 challenges.

Governance Achievements

• Established a sustainable development committee.
• Established a risk management committee.
• Implemented a comprehensive risk management system based on COSO-ERM and domestic internal control rules.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on the container shipping market and global supply chain.
• Climate change risks, including physical risks (extreme weather) and transition risks (regulatory changes).
• Piracy attacks.

Mitigation Strategies

• Launched water-water transport and water-rail combined transport services.
• Implemented energy-saving measures, including real-time fleet operation monitoring and fuel control.
• Strengthened COVID-19 prevention and control measures, ensuring the life and health of employees.
• Implemented anti-piracy measures, including route optimization and hiring armed security teams.
• Established unimpeded reporting channels for corruption complaints.

Supply Chain Management

Responsible Procurement

• Supplier Information Registration Form
• Supplier’s Undertaking against Commercial Bribery
• Supplier’s Self Evaluation Questionnaire on Compliance with Social Norms
• Annual assessment and grading of suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Changes in national policies and IMO regulations

Reporting Standards

Frameworks Used: GRI Standards (Core option), 2020 Environmental, Social and Governance Reporting Guide (Hong Kong Stock Exchange)

Third-party Assurance: CECEP (HK) Advisory Company Limited

Awards & Recognition

• Gold Award in the "Protect the Blue Whales and Blue Skies" project (2019)
• "Best Intelligent Service Container Liner Company" in China

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Protection
• Safe Shipping
• Employee Care
• Service Promotion
• Community Investment
• Business Ethics
• Corporate Governance
• Supply Chain Management

Environmental Achievements

• Reduced greenhouse gas emissions in container shipping business to 22,214,824 tons of carbon dioxide equivalent in 2021.
• Achieved over 92% compliance rate for shore power use at Port of Long Beach/Los Angeles Port/Oakland Port.
• Reduced total power of auxiliary fuel used by ships by over 96% after berthing at the ports.
• Total fresh water consumption of COSCO Shipping Holdings’ ships was 343,822 tons, and 297,840 tons of seawater was desalinated.

Social Achievements

• Provided training for 33,406 employees, totaling 418,753 hours.
• Launched “COSCO Shipping CEN-EXPRESS” service, meeting urgent needs of direct customers and supporting global supply chain stability.
• Provided special services for over 1,600 small and medium-sized direct customers, with cumulative shipment exceeding 55,000 TEUs.
• Implemented a three-level assistance mechanism for employees in need.

Governance Achievements

• Established the Global Shipping Business Network (GSBN) to promote digital transformation in the shipping industry.
• Implemented a zero-tolerance policy for all acts violating business ethics.
• Conducted various anti-corruption training and activities for all employees and directors.
• Revised the Anti-monopoly Compliance Management Measures and issued the Anti-monopoly Emergency Response Plan.

Climate Goals & Targets

Environmental Challenges

• Climate change risks, including physical risks (floods, strong winds, drought, rising sea levels, ocean acidification, temperature rise) and transition risks (market shifts, regulatory changes, carbon pricing).
• Supply chain disruptions due to the pandemic, terminal congestion, railway strikes, and highway capacity shortages.
• Piracy in certain sea areas.
• Extreme weather events (typhoons, cold waves).

Mitigation Strategies

• Formulated environmental protection objectives and guidelines, implementing measures for green shipping, energy conservation, and carbon reduction.
• Developed alternative sourcing strategies and implemented individualized and customized whole-process service for major customers.
• Implemented anti-piracy policies, including hiring armed escorts and equipping ships with safety cabins.
• Developed emergency plans and conducted drills to respond to extreme weather events and other emergencies.

Supply Chain Management

Supplier Audits: Annual assessment and rating of suppliers; on-site inspections of key suppliers.

Responsible Procurement

• Revised Measures for Procurement and Supplier Management of COSCO Shipping Holdings.
• Supplier Information Registration Form.
• Commitment Letter of Anti-Commercial Bribery for Suppliers.
• Self-examination Questionnaire of Supplier's Social Standards Compliance.

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Strong winds/cyclones
• Drought
• Rising sea level
• Ocean acidification
• Temperature rise

Transition Risks

• Market risks
• Regulatory changes
• Carbon pricing

Reporting Standards

Frameworks Used: GRI Standards, Hong Kong Stock Exchange Guidelines for Environmental, Social and Governance Reporting

Third-party Assurance: CECEP (HK) Advisory Company Limited

Awards & Recognition

• Best Board of Directors of the 12th Tianma Award
• Annual Sustainable Development Award of 2021 China Enterprise ESG Award
• Ranked 37th in Top 500 ESG Enterprises in China
• Excellent Board of Directors of the 16th Gold Prize
• Best Case of ESG of Chinese Enterprises
• 2020 Internal Control of Sustainable Development Award
• A-share Listed Company Social Responsibility Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Use and Emission Reduction
• Water Resources and Wastewater Management
• Solid Waste Management
• Biodiversity
• Employee Safety
• Supply Chain Sustainability
• Community Involvement
• Corporate Governance

Environmental Achievements

• Greenhouse gas emission of 15,183,844 tons in 2022.
• Completed high-voltage shore power system transformation of 26 Chinese ships.
• 105 self-owned vessels equipped with high-voltage shore power system.
• Sea trial of biofuels completed, reducing carbon emissions by more than 15% compared to traditional fuel oil.
• Signed contracts for 5 methanol dual-fuel ships of 24,000 TEUs.

Social Achievements

• 100% training and education coverage for employees.
• 0‰ injury rate per thousand people.
• CNY 3,151 million investment in community activities.
• 894 hours of community activities.
• 284 times of participation in community activities.
• Average 33 training hours per employee.

Governance Achievements

• Established a Sustainability Committee to manage sustainable development matters.
• Implemented Sustainability Reporting Procedure.
• Engaged a third party for internal and external audits.
• No major lawsuit related to corruption or unfair competition.

Climate Goals & Targets

Environmental Challenges

• Geopolitical turmoil, global inflation crisis, impacts of industrial transformation, tightening regulatory environment.
• Climate change risks (physical risks like floods, strong winds, rising sea levels; transition risks like regulatory changes, market shifts).
• Supply chain disruptions due to port congestion and shortage of operators.

Mitigation Strategies

• Strengthened forward-looking planning and precise policies.
• Developed strategies to deal with climate change, including emergency response plans, meteorological monitoring, and energy-saving measures.
• Formulated support policies for SMEs to address shipping space shortage and cargo detention.
• Implemented energy-saving and emission-reduction measures, including optimizing route selection and using low-sulfur fuel oil.

Supply Chain Management

Supplier Audits: Annual assessment and rating of suppliers; spot checks conducted at the end of the year.

Responsible Procurement

• Strict supplier management mechanism; supplier access criteria include environmental and social performance; all suppliers signed the Commitment Letter of Anti-Commercial Bribery for Suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Floods, strong winds/cyclones, ocean acidification, rising sea levels

Transition Risks

• IMO regulations, EU Emissions Trading System, carbon pricing mechanisms, customer behavior change

Opportunities

• Development of biofuels and green methanol fuel; energy efficiency improvements; adoption of more energy-efficient transportation modes.

Reporting Standards

Frameworks Used: HKEX Guidelines for Environmental, Social and Governance Reporting, GRI Standards

Certifications: ISO 14001 (Environmental Management System), ISO 45001 (Occupational Health and Safety Management)

Third-party Assurance: CECEP (HK) Advisory Company Limited

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Green methanol fuel, biofuels, intelligent reefer containers, Syncon Hub digital intelligent supply chain platform, WMS Warehouse Management System, IQAX eB/L blockchain electronic bill of lading.

Awards & Recognition

• COSCO Shipping Lines' “Mummy Hut” recognized as a “Five-star Mummy Hut of the Shanghai Trade Union”.

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Health and Safety
• Employee Empowerment
• Business Development and Collaboration
• Community Investment

Environmental Achievements

• Reduced VOCs and Benzene emission by achieving more than 50% usage of water-based coatings in production over the past 3 years.
• Completed the regenerative thermal oxidizers (“RTO”) project for waste gas treatment at Jinshan Laboratory, improving VOCs decomposition.
• Recovered a total of 77 tonnes of solvents in 2023.
• Recycled a total of 4,587 numbers of 200L raw material barrels for finished product packaging.

Social Achievements

• Achieved zero significant fires, traffic accidents, equipment accidents and work-related deaths, as well as an annual work-related injury rate of below 5%.
• Maintained ISO 45001:2018 certification for production facilities.
• Organised various training programs for employees, including Compliance Operation Management Training Course, Shanghai Intellectual Property Workers Training Course and Powder Coating Formulation Design Training Course.
• Organised Women’s Day events and hiking activities for female employees.
• Established a staff centre with fitness room, reading room, chess room, billiards and table tennis rooms.

Governance Achievements

• Established an ESG Committee comprising representatives from various divisions.
• Implemented a Whistleblowing Policy to ensure transparency and accountability.
• Established the “Professional Ethics and Code of Conduct for the Staff of COSCO SHIPPING International” to ensure high standards of integrity and morality.
• Conducted annual employee self-evaluation survey on topics such as integrity and equity, declaration and disclosure of interests, conflicts of interest, safeguarding confidential information and company assets.

Climate Goals & Targets

Environmental Challenges

• Stringent national and municipal emission regulations.
• Climate-related risks such as extreme weather events, sustained high temperatures, regulatory compliance risks and reputation risks.

Mitigation Strategies

• Transitioning from solvent-based to water-based coatings.
• Implementing exhaust gas after-treatment facilities.
• Implementing emergency management plans and contingency plans for natural disasters.
• Conducting annual emergency exercises.
• Staying updated on regulatory developments to ensure compliance.

Supply Chain Management

Supplier Audits: Annual supplier monitoring mechanism; 23 suppliers admitted in 2023 at COSCO Kansai Companies.

Responsible Procurement

• Standardised procurement methods considering environmental and social impacts.
• Supplier selection based on ISO 9001, ISO 14001 and ISO 45001 certifications.
• Contracts incorporating relevant clauses to ensure continued compliance.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions (e.g., typhoons, flooding)
• Sustained high temperatures

Transition Risks

• Regulatory compliance risk
• Reputation risk

Reporting Standards

Frameworks Used: ESG Guide outlined in Appendix C2 of the Main Board Listing Rules issued by The Stock Exchange of Hong Kong Limited

Certifications: ISO 14001, ISO 45001:2018, ISO 9001

Sustainable Products & Innovation

• SeaQuantum (green silyl-based antifouling coating)
• SeaQuest Endura (organosilicon self-polishing antifouling coating)
• Hull Performance Solutions (HPS)
• Hull Skating Solutions (HSS)
• HullKeeper

Awards & Recognition

• 15 Years Plus Caring Company Logo
• Good MPF Employer 2022–2023
• e-Contribution Award
• MPF Support Award
• Outstanding Human Resource Management Award for 2023
• 2023 China’s Best ESG Employer Awards — Innovation and Development Award