Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Occupational safety and health
• Talent cultivation
• Community construction
• Supply chain management

Environmental Achievements

• Expenditure for environmental protection amounted to RMB92 million, mainly used for improving the environmental management model. Reduced VOCs emissions through water-based paint adoption. Achieved a VOCs elimination ratio of over 94% at Southern CIMC.
• Lightweight vehicle designs saved 1,650 tonnes of steel.
• Adoption of cyclopentane (CP) blowing agent in reefer containers.

Social Achievements

• Awarded “Five-star Enterprises in Discharging Social Responsibility among Industrial Sector in China”.
• “CIMC Lean Security System” awarded “Distinguished Implementation Awards for Enterprise’s Sustainable Development of Guangdong Province for 2015”.
• RMB 9 million invested in employee training and skill development.
• 100% labor contract signing rate.

Governance Achievements

• Established the “technology-driven” science and technology innovation mechanism.
• Applied for 534 patents, including 282 invention patents.
• Implemented “Governance by Laws”, broadened reporting channels, and promoted the China Enterprise Anti-Fraud Alliance.

Climate Goals & Targets

Environmental Challenges

• Meeting upgraded national regulations on environmental protection, specifically VOCs emissions.
• Maintaining a safe working environment across numerous global operations.

Mitigation Strategies

• Signed the “China Container Industry Association VOCs Governance Self-Discipline Convention” and implemented water-based paint.
• Implemented the “CIMC Lean Security System”, focusing on hazard inspection, safety awareness, and equipment safety.
• Regular safety inspections and compliance certification reviews.

Supply Chain Management

Responsible Procurement

• CIMC Group Purchasing Management System
• Agreement on Good Faith Cooperation and Fair Competition

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ESG Reporting Guide (Hong Kong Listing Rules), Global Reporting Initiative G4 Sustainability Reporting Guidelines

Certifications: ISO14001 (seven container business subsidiaries)

Sustainable Products & Innovation

• Lightweight semi-trailers
• Reefer containers using cyclopentane blowing agent
• Modular buildings

Awards & Recognition

• Five-star Enterprises in Discharging Social Responsibility among Industrial Sector in China
• Distinguished Implementation Awards for Enterprise’s Sustainable Development of Guangdong Province for 2015

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Occupational Safety and Health
• Social Responsibility
• Corporate Governance
• Community Engagement

Environmental Achievements

• Investment in environmental protection exceeded RMB540 million in 2017.
• Fully adopted water-soluble paint for container manufacturing, reducing VOC emissions.
• Use of over 514,000 kWh in solar power, equivalent to reducing greenhouse gas emissions of more than 360 tonnes of carbon dioxide equivalent.

Social Achievements

• Launched the third phase of the “Leadership Development Programme”, focused on trainings for strategic thinking, coaching leadership and change management.
• Donations of RMB 2,592 thousand made by the Group in 2017 in poverty alleviation, education, medical treatment, disaster relief, and environmental protection.
• All container plants passed the third level of safety standardization certification; 18 companies passed the second level; 10 subsidiaries obtained third-party OHSAS18001 certification.

Governance Achievements

• Became the first pilot organization of Shenzhen ISO37001 Anti-bribery Management System.
• Established a corporate governance structure in line with modern enterprise management requirements.
• Implemented the “corporate governance according to law” standard.

Climate Goals & Targets

Environmental Challenges

• Global political and economic uncertainty.
• Contradictions between industrial development and environmental protection.
• Shortage of human resources.

Mitigation Strategies

• Adjusting and optimizing existing business structure.
• Fostering strategic emerging businesses and innovation projects.
• Improving internal processes and management mechanisms.
• Strengthening risk management and control.
• Promoting industrial collaboration and deepening reform.
• Implementing the core human resources management philosophy of “People-oriented & Common Cause”.

Supply Chain Management

Supplier Audits: 1,656 suppliers audited in 2017

Responsible Procurement

• CIMC Supplier Management System
• Unified supplier access standards
• Comparison of at least 3 potential suppliers for material purchases
• Tender and bid processes for project purchases

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards, ESG Reporting Guide of the Hong Kong Stock Exchange, Social Responsibility Reporting Guide of Shenzhen Stock Exchange, Social Responsibility Guidelines for China’s Industrial Enterprises and Industrial Associations (2.0)

Certifications: ISO 14001, OHSAS 18001, ISO 37001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 6 (Clean Water and Sanitation)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 11 (Sustainable Cities and Communities)
• Goal 13 (Climate Action)

Not disclosed

Sustainable Products & Innovation

• World’s first unmanned intelligent boarding bridge
• Lightweight semi-trailers using ultra-high strength steel
• Environment-friendly containers using water-based paint
• Green and intelligent 1,000 TEUs class container ship
• Modular buildings

Awards & Recognition

• State Scientific and Technological Progress Award
• Fortune China 500 Enterprises
• Top 500 Enterprises in Guangdong
• Top 100 Enterprises in Shenzhen
• China Good Design Award (silver medal for modular building)

Environmental Metrics

ESG Focus Areas

• Responsibility Governance
• Global Logistics
• Climate Change
• Corporate Care

Environmental Achievements

• 6 green factories established
• 1 national green supply chain management demonstration enterprise
• VOCs emissions reduced by 12.5% over 2018
• Total discharge of hazardous waste reduced by 10.9% over 2018

Social Achievements

• 11 targeted poverty alleviation projects implemented, benefiting 106 people and 38 students
• 43 enterprises passed occupational health and safety certification
• 100% of employees signed labor contracts
• Various employee training programs with over 11,936 hours of online learning

Governance Achievements

• Successfully incorporated into the Hang Seng A-share Sustainability Benchmark Index
• Maintained a good rating of the MSCI ESG Index
• Won numerous external awards for social responsibility and investor relations
• Improved information disclosure management measures

Climate Goals & Targets

Environmental Challenges

• Slowdown in global economic growth
• Sino-US trade friction
• Downward pressure on the Chinese economy
• Changes in the external development environment
• High-quality growth requirements in China
• Health, safety, and environmental protection issues
• Human resource constraints

Mitigation Strategies

• Optimized business portfolio for transformation and upgrading
• Implemented four core strategic initiatives
• Developed six core competences
• Implemented ESG&HSE strategy, including improving the ESG indicator system and promoting green development
• Established a green manufacturing system
• Strengthened ESG management structure
• Integrated ESG into comprehensive risk management
• Optimized ESG indicator system and ESG data management
• Established sustainable development strategies and goals at the group level

Supply Chain Management

Responsible Procurement

• Diversified procurement methods
• Uniform supplier admission standards
• Layered institutional system design
• Container Transparent Procurement Platform EPS
• CIMC ONE model promotion to suppliers
• Strategic cooperation agreements with core suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, Appendix 27 the Environmental, Social and Governance Reporting Guide to the Rules Governing the Listing of Securities on the Main Board of The Stock Exchange of Hong Kong Limited, Guidelines for Companies Listed on the Shenzhen Stock Exchange on Releasing Information on Corporate Social Responsibility

Certifications: ISO 14001, ISO 9000

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation and infrastructure)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)

CIMC's initiatives in cultivating smart logistics business, developing natural gas equipment, constructing green factories, and implementing sustainable development strategies contribute to these goals.

Sustainable Products & Innovation

• Environment-friendly container
• LNG products
• CNG products
• LPG products
• New energy electric truck
• Bamboo-wood composite floor board
• Recyclable package
• Light-weight products
• Intelligent environment-friendly products
• Green refrigerated trucks

Awards & Recognition

• 2019 China “Outstanding Responsible Enterprise”,
• 2019 Listed Companies “Gold Quality-Social Responsibility Award”,
• 2019 Top 100 Chinese Enterprises for Sustainable Development
• 2019 Chinese Enterprises ESG Golden Responsibility Award
• 2019 Hong Kong ESG Reporting Award
• 2019 Golden Bee-Supplier Responsibility Information Disclosure Award
• 2019 Golden Wisdom Award-2019 Environmental Contribution Award for Chinese Listed Companies
• 2019 Most Social Responsibility Award for Hong Kong Listed Companies in Greater China
• 2019 Most Social Responsibility Award for A-share Listed Companies in Greater China
• 2019 Best CEO of Hong Kong-listed Company in Greater China
• 2019 Shenzhen Listed Companies “Top Ten Green Governance”