Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Green Logistics
• Circular Economy
• Social Responsibility
• Rural Revitalization
• Talent Development
• Safety
• Supply Chain Management
• Corporate Governance
• Data Security
• Business Ethics

Environmental Achievements

• Reduced GHG emissions by 1,557,816.4 tCO2e
• Added more than 4,900 new-energy powered vehicles
• Reduced base paper use by approximately 47,000 tons and plastics by 150,000 tons
• Used more than 62.51 million fully degradable “Feng Bags”
• Planted over 300 acres of carbon-neutral forest

Social Achievements

• Provided jobs for 200 people with disabilities (52% increase year-on-year)
• Achieved 97.4% resolution rate of employee appeals
• Total annual public service expenditure of the SF Foundation was RMB117.4 million
• Delivered 3.62 million tons of special agricultural products, helping farmers generate over RMB100 billion in revenue
• Employee engagement 86.2%, employee satisfaction 86.4%

Governance Achievements

• 94.6% signing rate of the Letter of Commitment to Anti-corruption (1.7% increase from 2021)
• No legal action in respect of improper competition and anti-monopoly
• Obtained 221 authorized patents and applied for 446 trademarks and 480 software copyrights

Climate Goals & Targets

Environmental Challenges

• Extreme weather events
• Regulatory changes related to green energy and packaging
• Market shifts towards green consumption
• Supply chain disruptions
• Data security risks

Mitigation Strategies

• Developed a digital intelligent carbon management platform
• Increased investment in new energy transportation
• Implemented fuel-saving technologies
• Promoted green packaging initiatives
• Established a sound internal control and risk management system
• Strengthened data security governance

Supply Chain Management

Responsible Procurement

• Transparent access, fair process, and fair supervision
• Social responsibility, integrity, and confidentiality clauses in supplier contracts
• Green procurement management regulations

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons, extreme precipitation, floods, extreme heat, extreme cold
• Rise in temperature and sea level
• Packaging material safety risks
• Employee health risks

Transition Risks

• Green energy policy risks
• Offshore compliance risks
• Green packaging policy risks
• Low carbon transition risks
• Change in consumer preferences

Opportunities

• Marketization of green packaging
• Green supply chain market

Reporting Standards

Frameworks Used: GRI Standards 2021, UN Sustainable Development Goals (SDGs), TCFD

Certifications: ISO 14001, ISO 50001, ISO 45001

Third-party Assurance: SGS-CSTC Standards Technical Services CO., LTD.

UN Sustainable Development Goals

• Goal 4: Quality education
• Goal 8: Decent work and economic growth
• Goal 11: Sustainable cities and communities
• Goal 13: Climate action
• Goal 3: Good health and well-being
• Goal 5: Gender equality
• Goal 7: Affordable and clean energy
• Goal 9: Industry, innovation and infrastructure
• Goal 10: Reduced inequalities
• Goal 12: Responsible consumption and production

Initiatives contributing to these goals are detailed throughout the report.

Sustainable Products & Innovation

• π-Box recyclable packaging box
• Feng Bag fully-degradable packaging plastic bags

Awards & Recognition

• Fortune Global 500
• Fortune’s Most Admired Chinese Companies
• Fortune China ESG Influential Listing
• BrandZ™ Top 100 Most Valuable Chinese Brands
• Chinese Top 50 Private Logistics Enterprises
• Chinese Top 50 Logistics Enterprises
• China’s Top 500 Private Enterprises
• R&D Investment and Invention Patents of 500 Private Enterprises
• China’s Top 500 Enterprises
• Chinese brands favoured by foreigners
• Most Socially Responsible Listed Company Award
• Top 25 Global Logistics Brands by Value
• China’s Top 500 Brands by Value
• China Business News’ “Golden Sign of the Year”

Environmental Metrics

ESG Focus Areas

• Carbon emissions reduction
• Green logistics
• Sustainable packaging
• Rural revitalization
• Employee well-being

Environmental Achievements

• Reduced raw paper utilization by approximately 23,000 tons and plastic by approximately 82,000 tons.
• Deployed over 19.48 million recyclable packaging containers, with a cumulative cycle of nearly 600 million times, reducing greenhouse gas emissions by more than 190,000 tons.
• Completed construction of rooftop photovoltaic power stations in 21 industrial parks, with a total installed capacity exceeding 89 MW; renewable energy power generation exceeding 42.5 million kWh and clean energy consumption exceeding 21,000 MWh during the first half of the year.
• Obtained ISO 14083 International Standard for Global Carbon Accounting in Logistics certification.

Social Achievements

• Closely partnered with local governments, industry associations, and leading brands to jointly build 35 regional brands for agricultural products.
• Delivered about 2.90 million tons of characteristic agricultural products in the first half of 2024.
• Improved new employee training, resulting in a year-on-year decline of 8.7 percentage points in turnover rate.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Macroeconomic fluctuations impacting the logistics industry.
• Intense market competition in the e-commerce sector.
• Rising costs due to labor and infrastructure investments.
• Fuel price fluctuations.
• Challenges in international operations due to geopolitical factors and uncertainties in international trade.
• Information system-related risks and privacy compliance risks.

Mitigation Strategies

• Closely monitoring macroeconomic situations and adjusting operation strategies.
• Forging differentiated competitive advantages and providing a complete product matrix.
• Improving logistics infrastructure and innovating system tools.
• Optimizing operation network layout, improving route planning and vehicle loading rate, and promoting the use of new energy vehicles.
• Tracking changes in trade policies, monitoring market dynamics, and adjusting international business operation strategies.
• Investing in scientific and technological resources and promoting the informatization construction of international business.
• Implementing information security control and protection, reinforcing risk awareness among staff, and establishing monitoring and response systems.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Adverse weather conditions impacting fresh and seasonal food logistics.

Transition Risks

• Changes in industry regulations and industrial policies related to environmental protection, energy conservation, and emission reduction.

Opportunities

• Development of energy-efficient products and services; promoting green and low-carbon reform.

Reporting Standards

Frameworks Used: Null

Certifications: ISO 14083

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Recyclable packaging containers; biodegradable packaging materials.

Awards & Recognition

• 2024 China Green Logistics ESG Practice Pioneer Typical Case
• 2023 CCF Big Data and Computing Intelligence Contest-Best Business Value Award
• Included in the list of international organizations "World IoT Ranking List"
• Included in the list of well-known media "Fortune Most Influential Internet of Things (IoT) Innovations List"