Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• High asset-liability ratio and large proportion of current liabilities.
• Large scale of restricted assets.
• High balance of interest-bearing debt.
• Profit relatively dependent on subsidiaries.
• Fluctuation of assets measured at fair value.
• Risk of bad debts in receivables from financing leases.
• Fluctuation of EBITDA interest coverage ratio.

Mitigation Strategies

• Optimizing debt structure and dynamic debt management.
• Maintaining good reputation and credit record, good cooperation with many commercial banks, no record of bank credit default.
• Expanding business scale and improving operational efficiency.
• Strengthening the stable operation of subsidiaries.
• Diversifying investment and risk management.
• Strengthening risk management and internal control.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• “China Leasing Annual Company” for seven consecutive years.
• “2021 Insurance Fund Investment Private Equity Investment Fund Manager Evaluation A-Class Institution”,
• “2020 Best State-owned Assets Fund Manager TOP5”,
• “2020 Best Institutional Investor TOP10”,
• “2021 China's Best S Fund TOP10”

Environmental Metrics

ESG Focus Areas

• ESG

Environmental Achievements

• Achieved Ge-1 level green enterprise certification and ESG rating A from China Chengxin International Credit Rating Co., Ltd. Increased green leasing business by 151 billion yuan in 2022 (44% of total). Issued 38 billion yuan in green bonds in 2022.

Social Achievements

• Implemented six phases of core personnel shareholding plans by the end of 2022. Approved a share option incentive plan in April 2023. Explored and implemented employee shareholding plans and follow-up mechanisms at subsidiaries.

Governance Achievements

• Established a comprehensive risk management system, including governance structure, strategy and preferences, risk measurement, risk reporting, performance appraisal, and information system. Implemented a market-oriented decision-making process with a three-level investment decision-making mechanism.

Climate Goals & Targets

Environmental Challenges

• Intensified competition in the financial industry due to economic development, financial innovation, and the impact of internet finance.
• Rapid growth of futures business poses higher demands on risk control capabilities.
• Continued growth in company's consolidated and parent company debt levels requires attention to leverage control.
• Fluctuations in net profit and net profit attributable to the parent company due to significant asset sales in 2020.

Mitigation Strategies

• Focus on core businesses and adapt to market changes.
• Strengthen risk management and control capabilities through optimized systems and processes.
• Enhance digital transformation to improve operational efficiency and risk management.
• Implement a market-oriented incentive and restraint mechanism to align employee and company interests.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Green leasing products and services

Awards & Recognition

• China Financing Leasing Annual Company (eight consecutive years)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Social Achievements

• 积极履行社会责任，持续发挥金融机构特色和优势，服务民生和实体经济；公司员工激励机制、培养体系健全，人员稳定性高；近三年未发生一般事故以上的安全生产事故。

Governance Achievements

• 公司建立了由股东大会、董事会、监事会和管理层组成的公司治理架构，其中股东大会是公司的最高权力机构。公司董事会下设战略与 ESG 委员会、审计委员会、提名委员会、薪酬与考核委员会、风险与资本管理委员会，各委员会分工明确，权责分明，运作有效，使董事会的决策分工更加细化。

Climate Goals & Targets

Environmental Challenges

• 期货业务规模的快速增长对风控能力提出更高要求
• 债务规模持续上升

Supply Chain Management

Climate-Related Risks & Opportunities