Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Reduced CO2e emissions by 84.42 metric tons through building energy efficiency initiatives.

Social Achievements

• Not disclosed

Governance Achievements

• Established an Environmental, Social, and Governance (ESG) committee in August 2021.

Climate Goals & Targets

Environmental Challenges

• Increased credit risk due to enhanced emissions-reporting obligations.
• Increased direct costs due to emerging carbon pricing mechanisms (EU ETS).
• Decreased revenues due to reduced demand for products and services (technology substitution).
• Increased indirect costs due to increased stakeholder concern and negative feedback.
• Decreased asset value or asset useful life due to flooding.

Mitigation Strategies

• Investing CNY 2,000,000 in environmental protection.
• Adapting to IMO requirements and EU ETS for shipping operations.
• Planning for the transition to clean energy equipment.
• Communicating with stakeholders and investing CNY 400,000 in ESG reporting and personnel.
• Establishing an internal emergency response mechanism and improving disaster preparedness.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Sea level rise

Transition Risks

• Regulatory changes (EU ETS, IMO regulations)
• Market shifts (technology substitution)

Opportunities

• Reduced direct costs through energy efficiency and renewable energy.
• Increased access to capital through green finance initiatives.
• Returns on investment in low-emission technology.

Reporting Standards

Frameworks Used: TCFD, HKEX ESG Reporting Guidance

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Distributed photovoltaic services (EMC model)

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Green Finance
• Climate Change Mitigation and Adaptation
• Environmental Management
• Employee Responsibility
• Customer Responsibility
• Charity Responsibility
• Investor Responsibility

Environmental Achievements

• Improved carbon inventory work across the Group; specified carbon peak and carbon neutrality goals: striving to achieve peak carbon emissions by 2025 and carbon neutrality in the whole value chain by 2050.
• Successfully completed the first sustainability-linked syndicated loan and actively expanded its layout in the new energy photovoltaic field through Horizon Construction Investment.
• GHG emissions (Scope 1 and Scope 2) decreased from 285,358.66 tCO2e in 2021 to 186,211.91 tCO2e in 2022. GHG emissions per unit of revenue (Scope 1 and Scope 2) decreased from 8.35 tCO2e/RMB1,000,000 to 5.09 tCO2e/RMB1,000,000.

Social Achievements

• Launched inclusive financial services and increased financial leasing support for MSMEs.
• Established an employee care scheme including care for female employees, support for employees in need, and staff activities.
• Upgraded the "Far East Academy E-learning" online learning platform into Far East College.
• MSCI ESG rating jumped from BB to A.

Governance Achievements

• Established and improved the ESG management structure of the "Board of Directors – ESG Committee under the Board of Directors – ESG Task Force".
• Held four meetings of the Board of Directors to fulfill review, decision-making, and supervision responsibilities of ESG matters.
• Formally became a TCFD supporter in April 2023.

Climate Goals & Targets

Environmental Challenges

• Global energy, food, and climate crises intensified, increasing economic uncertainty.
• China's economy faced greater challenges under the triple pressure of "demand contraction, supply shocks, and weakening expectations".
• COVID-19 pandemic impact.

Mitigation Strategies

• Upholds risk control philosophy of "seeking all-round, whole-process, multi-faceted and uninterrupted engagement".
• Improved comprehensive risk management system.
• Developed differentiated allocation strategies for four categories of industries: encouraged, maintained, restricted, and compressed.
• Fostered a risk management culture through training and risk case lectures.
• Took ESG risks into full consideration in conducting inclusive finance business.

Supply Chain Management

Supplier Audits: Regular inspections and appraisals of partner suppliers.

Responsible Procurement

• Preferentially procuring energy-saving and eco-friendly products.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (typhoons, floods, rainstorms)
• High-temperature weather
• Rising sea levels

Transition Risks

• Regulatory changes
• Market shifts
• Increased operating costs for carbon-intensive industries
• Decreased demand for energy-intensive products

Opportunities

• Development of energy-efficient products
• Increased demand for energy-saving and eco-friendly products
• Market opportunities in green finance and energy conservation

Reporting Standards

Frameworks Used: GRI Standards, TCFD

Certifications: ISO 14001

Sustainable Products & Innovation

• Energy-saving equipment
• Green foundation pit support technology
• Green asset-backed notes

Awards & Recognition

• "Top Human Resources Management Awards"
• "Excellent Green Product Award"
• "Annual Outstanding Enterprise Award"
• "China Financial Leasing 'Soar' Award"
• "Most Influential Financial Leasing Company Award"
• "Leading Green Leasing Enterprise"