Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced paper consumption by 7.3% compared to 2020.
• 100% savings on festive decoration supplies compared to 2020 by reusing items from the previous year.
• Decreased electricity consumption density by 25.5% compared to 2020.
• Decreased water consumption density by 22.8% compared to 2020.

Social Achievements

• 100% customer complaint handling rate with no complaints escalating to lawsuits.
• Organized various employee activities such as Happy Hour, staff monthly meetings, and book sharing activities to enhance employee satisfaction and cohesion.
• Provided 35 training activities for 726 employees, totaling 360 hours.
• Donated RMB 500,000 to aid Henan flood relief efforts.
• Donated RMB 60,000 to Zhikang Wellness Center for Children.
• Donated RMB 3,450,000 to New York University Shanghai Scholarship Endowment.

Governance Achievements

• Complied with Anti-Fraud Management Rules, with no legal cases related to corruption or fraud.
• Implemented the "Intellectual Property Management Measures" to protect intangible assets.
• Updated User Privacy Policy to detail the collection, use, storage, and protection of customer personal information.
• Established strict rules and procedures to protect the security of customer information.
• Held an investor relations event with Snowball Finance to promote interaction and communication with investors.

Climate Goals & Targets

Environmental Challenges

• Potential impact of major natural disasters (floods, fires, earthquakes) on corporate operations.

Mitigation Strategies

• Regularly organizes fire drills to mitigate risks from natural disasters.

Supply Chain Management

Supplier Audits: Yearly evaluation of suppliers; ESG audits introduced in annual assessment.

Responsible Procurement

• Administrative Procurement Management Rules: requires at least three qualified suppliers per product category; verification of supplier qualifications; yearly evaluation of supplier service qualifications.

Climate-Related Risks & Opportunities

Physical Risks

• Floods, fires, earthquakes

Reporting Standards

Frameworks Used: Environmental, Social and Governance Reporting Guide (ESG Guide) under Appendix 27 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

Awards & Recognition

• 2021 Snowball Finance Annual Gold List
• The 6th Golden Tangerine Awards of Time Finance - Socially Responsible Financial Institution Award
• The Time Weekly 2021 11th China Listed Company Reputation List - 2021 Overseas Listed Company with the Highest Growth Potential
• 2021 Beijing Financial Forum - Green Finance Practice Award
• 2021 Fintech Pioneer - Inclusive Financial Service Provider of the Year
• 2021 Excellent Finance Award - Product Service Award · Leading Consumer Financial Services of the Year
• Golden Hong Kong Stocks - Best New Economy Company
• 2021 Financial Institutions of Competitiveness of Excellence - 2021 Socially Responsible Company with Excellence of Competitiveness
• 2021 Fintech Service Institution of the year
• 2021 TOP20 Intelligent Risk Control Pioneer Institutions
• TOP50 Digital Technology Weapons
• 2021 TOP30 Banking Technology Service Provider
• Best Microservice Award & Management Innovation Award
• 2021 "Guarding the Net" Hongkou District Cybersecurity Offensive and Defence Exercise - Excellent Defence Team

Environmental Metrics

ESG Focus Areas

• Corporate Social Responsibility
• Client and Investor Rights
• Employee Rights
• Environmental Performance
• Community Investment
• Supply Chain Management
• Anti-Bribery and Anti-Fraud
• Anti-Money Laundering and Counter-Terrorism Financing

Environmental Achievements

• Reduced paper consumption through digitization and online processes.
• Reused festive decorations and office supplies from the previous year.
• Strengthened collection and processing of waste batteries and electronic waste for recycling.

Social Achievements

• 100% customer complaint handling rate with no complaints escalating to lawsuits.
• Implemented a comprehensive supplier management system.
• Provided 45 training activities for employees, totaling 1,450 attendances and 301.6 hours.
• Organized various employee activities to enhance internal cohesion.
• Donated approximately RMB 303,197 worth of epidemic prevention materials to Hongkou District during the Shanghai COVID-19 pandemic.
• Participated in the “Foreign Trade Trust -2022 Rural Revitalization No. 1 Sparkle Charity Trust”

Governance Achievements

• Established a sound complaint handling system.
• Developed the Anti-Fraud Management Rules and Employee Anti-Fraud Code of Conduct.
• Implemented the Anti-Money Laundering and Counter-Terrorism Financing Management Measures.
• Developed comprehensive regulations and rules for the protection of customer information assets.

Climate Goals & Targets

Environmental Challenges

• Potential impacts of climate change-related natural disasters on operations.
• High employee turnover rate (29.8%).

Mitigation Strategies

• Regular fire drills to prevent losses from natural disasters.
• Competitive compensation and incentive mechanisms to retain employees.
• Annual salary reviews to ensure competitive salaries.

Supply Chain Management

Supplier Audits: ESG audits incorporated into annual supplier assessments

Responsible Procurement

• Administrative Procurement Management Rules

Climate-Related Risks & Opportunities

Physical Risks

• Floods, fires, and earthquakes

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ESG Guide under Appendix 27 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, TCFD recommendations

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 2022 “ESG Pioneer 60” Annual ESG Green Finance Award
• Most Socially Responsible Listed Company (Jiemian News)
• Golden Orange Award - Social Responsibility Financial Institution Award (Zhitong Finance)
• Annual Financial Services Innovation Company (Time Finance)
• Top 10 Brands in Beijing's Financial Industry - Outstanding Social Responsibility Performance Award (Beijing Business Today)
• Member Unit of the Software Supply Chain Security Laboratory 3S-Lab (China Academy of Information and Communications Technology)
• Hongkou District Key Enterprise Contribution Award (People's Government of Hongkou District, Shanghai)
• Chengdu AA-level Microfinance Company (Chengdu Microfinance Association)

Environmental Metrics

ESG Focus Areas

• Responsible Governance
• Digital and Intelligent Financial Services
• Talent Development
• Green Operations
• Community Engagement

Environmental Achievements

• Reduced energy consumption through various green office initiatives (e.g., cloud desktops, reduced printing, optimized air conditioning usage)
• Reduced greenhouse gas emissions (Scope 1+2) to 805.17 tonnes of CO2 equivalent

Social Achievements

• Launched first employee engagement survey in May 2023, fostering trust and mutual understanding.
• Established Consumer Rights Protection Committee and Information Security Management Committee to safeguard consumer interests and information security.
• Total community contribution of 402,924.20 yuan and 1,556 hours of volunteer service.

Governance Achievements

• Established an ESG strategy of “One Core, Two Engines and Three Focuses”, emphasizing reliable fintech services, technology and data leverage, and responsible governance.
• Implemented robust compliance review procedures and risk management systems.
• No concluded legal cases regarding corrupt practices.

Climate Goals & Targets

Environmental Challenges

• Maintaining information security in a rapidly evolving digital landscape.
• Addressing challenges related to climate change and its impact on business.
• Managing risks associated with illegal agents and malicious complaints in the fintech industry.

Mitigation Strategies

• Established an Information Security Management Committee and implemented a multi-layered security defense system.
• Developed a climate change management system aligned with the TCFD framework.
• Strengthened compliance and internal control measures, cooperated with industry peers and law enforcement to combat illegal activities.

Supply Chain Management

Supplier Audits: 742 suppliers; annual evaluation and examination of supplier satisfaction.

Responsible Procurement

• Established Measures for Procurement Management System; supplier screening process includes license and qualification checks, risk assessment, and environmental and social criteria.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SEHK Environmental, Social and Governance Reporting Guide, GRI Sustainability Reporting Standards, UN Sustainable Development Goals (SDGs)

Awards & Recognition

• Numerous awards and recognitions in 2023, including awards for ESG practices, fintech innovation, and cybersecurity.