Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employment and Labor Practices
• Operational Practices
• Community Investment

Environmental Achievements

• Reduced electricity consumption by 8.3% compared to 2019.
• Reduced gasoline consumption from approximately 11,099 liters in 2019 to 8,968.22 liters in 2020.
• Reduced greenhouse gas emissions intensity by approximately 21.2% compared to the previous year.
• Reduced paper consumption by approximately 35.9% compared to the previous year.

Social Achievements

• Established various communication channels for employee feedback.
• Implemented an open and fair staff performance appraisal process.
• Provided staff recognition award programs and special caring programs.
• Upholds human rights and privacy of employees with non-discriminating policies for employee recruitment.

Governance Achievements

• Enacted a zero-tolerance approach on corruption, bribery, extortion, fraud and money laundering.
• Established a whistleblowing management policy with clear reporting channels.
• Complied with relevant laws and regulations regarding service responsibilities and customer privacy.
• Complied with the Criminal Law of the PRC, Anti-Money Laundering Law of the PRC, Anti-Unfair Competition Law of the PRC, and the Prevention of Bribery Ordinance (Cap. 201) in Hong Kong.

Climate Goals & Targets

Environmental Challenges

• Limited data on waste due to building management company handling.
• COVID-19 pandemic impacting business travel and operations.

Mitigation Strategies

• Implemented various energy conservation measures.
• Reduced company vehicle use.
• Encouraged public transport and teleconferencing.
• Strictly followed government policies and health advice on COVID-19 prevention.

Supply Chain Management

Supplier Audits: 72 suppliers engaged (48 Mainland China, 24 Hong Kong)

Responsible Procurement

• Vetting committee for supplier selection, evaluation, and management.
• Assessment of intermediaries based on accreditation, management systems, service quality, financial stability, legal compliance, and professional skills.
• Price comparison, bidding, and open tender for supplier selection.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide

Certifications: ISO 9001:2015 (PRC subsidiary)

Third-party Assurance: Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employment and Labour Practices
• Operational Practices
• Community

Environmental Achievements

• Improved energy efficiency through administrative measures and employee encouragement (reduced electricity consumption by 50.48% and gasoline consumption by 45.21% compared to 2020)
• Implemented waste management measures, including recycling bins for paper, metal, and plastic
• Formulated an Environmental Policy Statement committing to identify environmental impacts, reduce energy consumption and pollutant emissions

Social Achievements

• Reviewed and improved employee policies, updating the Employee Handbook to cover compensation, dismissal, recruitment, promotion, working hours, rest periods, equal opportunity, diversity, anti-discrimination, and benefits
• Provided various training courses and activities, including 6S management workshops and seminars on auto industry financing and fintech
• Organized sports and fitness activities for employees and provided fitness equipment to promote work-life balance

Governance Achievements

• Established an ESG task force to oversee ESG-related risk management and internal control systems
• Implemented a corruption prevention management system and anti-corruption training
• Revised Procurement Guidelines to improve supplier sustainability performance

Climate Goals & Targets

Environmental Challenges

• Uncertainties brought by sustainability risks to business operations
• Climate change risk bringing uncertainties to future development
• Potential supply chain risks

Mitigation Strategies

• Continuous review of operational risks and ESG-related factors in risk response strategies
• Inclusion of policies to regulate suppliers’ sustainability performance in Procurement Guidelines
• Formulation of policies and measures to ensure long-term business development in the face of climate change risks
• Comprehensive review of supply chain management system to identify and mitigate risks

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Strict selection of high-quality intermediaries and suppliers
• Revised Procurement Guidelines promoting green procurement and supplier sustainability

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix 27 to the Listing Rules issued by the Stock Exchange of Hong Kong)

Certifications: ISO 9001:2015 (in subsidiaries engaged in supply chain management)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• China Supply Chain (Finance Industry) Role Model Awards – Best Supply Chain (Finance) Best Growth Value Award (Beijing Jingxi Supply Chain)

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employment and Labour Practices
• Operating Practices
• Community
• Supply Chain Management
• Anti-corruption

Environmental Achievements

• Reduced GHG emissions by 20% compared to the previous year; reduced energy consumption by 52.97% compared to the previous year; supplied more than 80,000 tonnes of scrap steel, reducing carbon emissions by more than 100,000 tonnes.

Social Achievements

• Formulated the Management Measures for Employee Physical Examination and carried out annual health examinations; developed mutual insurance activities for employees; promoted work-life balance and actively organised sports and fitness activities for employees; implemented a series of safety management measures and Retail Safety Management Regulations; no work-related injuries or fatalities occurred during the reporting period; 96.61% of employees received training.

Governance Achievements

• Established comprehensive internal policies and systems to ensure compliance; no ESG regulation violations or concluded legal cases regarding corrupt practices.

Climate Goals & Targets

Environmental Challenges

• Decrease in revenue from the supply chain management and financial technology business segment due to business transformation; decrease in segment profit from sale and leaseback arrangements due to recovery of receivables previously written off.

Mitigation Strategies

• Successfully transformed and launched the Supply Chain Financial Platform; continuous expansion of sale and leaseback arrangements services; implemented a prudent risk management and control strategy; built a sound and reliable risk control system.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Procurement Guidelines; Supplier Management Procedures; Fair, just and open; Cost and quality control; Classification management and focusing on effectiveness; Prioritising environmental protection products with low carbon emissions; Integration of authorisation and accountability

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Transition Risks

• Changes in relevant policies and regulations

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix C2 to the Listing Rules)

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• “Gelonghui 5th “Golden Award” — 2023 Pioneer Enterprise of Transformation”, “2023 Chang’an Chain of Excellence — Industry Demonstrations”