Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental sustainability
• Human rights and social culture
• Stakeholder communication
• Employee support
• Local community development

Environmental Achievements

• Planted 73,972 trees, substantially reducing carbon footprint
• Improved greening rates of cemeteries (Zhejiang Anxian Yuan: 65%, Yin Chuan Fu Shou Yuan: 56%, Zunyi Dashenshan: 90%)
• Advocated civilized graveside rituals, reducing air pollution from incense and offerings

Social Achievements

• Strictly complied with labor laws and regulations
• Provided comprehensive salary and benefits to attract and retain talents
• Organized various charitable activities, donating approximately RMB250,000
• Held the 15th staff sports meeting and the 14th “Anxian Cup” Fishing Tournament

Governance Achievements

• Established an ESG working group to assist the Board in overseeing and promoting the implementation of various ESG strategies
• Complied with the Corporate Governance Code (except for deviation from code provision A.1.1)
• Adopted a share option scheme (no options granted during the year)

Climate Goals & Targets

Environmental Challenges

• Increased coal gas consumption due to increased number of dining customers
• Ongoing COVID-19 pandemic impacting large-scale training activities
• Traditional mindset in PRC leading to continued burning of incense and offerings

Mitigation Strategies

• Implemented energy saving policies and green measures
• Provided employees with trainings for skills required in their job duties
• Provided grave sweepers with flowers to advocate civilized graveside rituals
• Set up incense areas in cemeteries to reduce environmental pollution

Supply Chain Management

Supplier Audits: 10 suppliers; on-site investigation and supplier investigation reports

Responsible Procurement

• Strict requirements on supplier selection; only select suppliers meeting specific criteria (industry and commercial registration, good integrity records, environmental and social compliance, operation scale, reputation, service and product standards, after-sales warranty)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions (flooding)
• Persistent high temperatures (increased electricity consumption)

Transition Risks

• More stringent climate policies and regulations

Reporting Standards

Frameworks Used: Appendix 27 Environmental, Social and Governance Report Guidelines of the Main Board Listing Rules on The Stock Exchange of Hong Kong Limited

Certifications: “Three in One” (quality, environment, and health and safety) international standard certification (2006)

Sustainable Products & Innovation

• Green burial methods (tree-planting burial, lawn burial, flower bed burial, wall burial)

Awards & Recognition

• Advanced enterprise for municipal funeral service
• Standard municipal cemetery
• Municipal green model enterprise
• Regional civilized enterprise
• Regional model cemetery
• Creditworthy Enterprise in Celebrating the 70th anniversary of the founding of the PRC of the Chambers of Commerce in Hangzhou
• Green·Caring Alliance Unit
• Honorary certificate by the Ningxia Hui Autonomous Region Funeral Association

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Human Rights and Social Culture
• Stakeholder Communication
• Employee Support
• Local Community Development

Environmental Achievements

• Planted 108,496 trees, exceeding the previous year's target and significantly reducing carbon footprint.
• Reduced energy consumption intensity by 0.2% despite increased overall energy usage due to pandemic-related employee housing.
• Implemented water purification and recycling systems in cemeteries, reducing water consumption intensity.
• Promoted green burial practices, including tree-planting, lawn, flower bed, and wall burials.

Social Achievements

• Provided comprehensive salary and benefits, attracting and retaining talent.
• Complied with all relevant labor laws and regulations.
• Offered 892 hours of employee training, focusing on job-related knowledge, induction, fire safety, marketing, and funeral services.
• Donated approximately RMB103,000 to charity organizations.

Governance Achievements

• Established a governance structure with a Board overseeing ESG matters and an ESG working group for implementation.
• Implemented a diversity policy for Board composition, considering gender, age, culture, and experience.
• Adopted a zero-tolerance policy against corruption and established reporting channels.

Climate Goals & Targets

Environmental Challenges

• Increased energy and water consumption due to pandemic-related employee housing.
• Traditional grave-sweeping practices leading to air pollution.

Mitigation Strategies

• Implementing energy-saving policies and green measures.
• Promoting civilized graveside rituals and providing flowers instead of incense.
• Continuing efforts to reduce energy and water consumption.

Supply Chain Management

Supplier Audits: 8 suppliers; on-site investigation conducted when necessary.

Responsible Procurement

• Strict requirements on supplier selection, including industry and commercial registration, good integrity records, environmental and social compliance, operation scale, reputation, service and product standards, and after-sales warranty.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions (flooding)
• Persistent high temperatures (increased electricity consumption)

Transition Risks

• More stringent climate policies and regulations (increased compliance costs)

Reporting Standards

Frameworks Used: Appendix 27 Environmental, Social and Governance Report Guidelines of the Main Board Listing Rules on The Stock Exchange of Hong Kong Limited

Certifications: “Three in One” (quality, environment, and health and safety) international standard certification (2006)

Sustainable Products & Innovation

• Green burial services

Awards & Recognition

• Advanced enterprise for municipal funeral service
• Standard municipal cemetery
• Municipal green model enterprise
• Regional civilized enterprise
• Regional model cemetery

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Respect for Human Rights and Social Culture
• Communication with Stakeholders
• Employee Support
• Local Community Development

Environmental Achievements

• Reduced total greenhouse gas emission density by 29% compared to the previous reporting year, mainly due to the replacement of coal heating with electric heating.
• Reduced energy consumption density by 26%, exceeding the target set in the previous reporting year.
• Reduced water consumption density by 15%, exceeding the target set in the previous reporting year.
• Planted 81,907 trees (25% decrease compared to the previous year, due to reduced new cemetery area and the planting of flowering plants not included in the tree data).

Social Achievements

• Provided comprehensive and competitive employee benefits to attract and retain talent.
• Implemented annual salary adjustments to share economic achievements with employees.
• Provided employee training totaling 1,486 hours (compared to 892 hours in the previous year).
• Maintained a safe and comfortable working environment, adhering to Chinese labor laws and regulations.
• Implemented a zero-tolerance policy for discrimination and harassment in the workplace.

Governance Achievements

• Established an ESG governance structure with clear responsibilities and authority.
• Implemented a zero-tolerance policy on corruption, strictly adhering to relevant laws and regulations.
• Established a robust supplier selection process with strict requirements to manage environmental and social risks in the supply chain.

Climate Goals & Targets

Environmental Challenges

• Increased gas consumption for cooking due to increased visitor and family meals.
• Decreased tree planting due to reduced new cemetery area and the planting of flowering plants not included in the tree data.
• Increased use of medium and heavy vehicles due to the scrapping of a light vehicle, leading to increased nitrogen oxide and particulate matter emissions.

Mitigation Strategies

• Installed self-closing valves on gas pipelines to prevent gas leaks and reduce emissions.
• Replaced a gasoline sightseeing vehicle with an electric one.
• Used air conditioning for heating instead of coal-fired boilers to reduce gasoline and coal consumption.
• Evaluated and integrated existing vehicles for more efficient use.
• Implemented energy-saving policies and green measures to avoid excessive consumption of natural resources.
• Implemented strict emission reduction measures (e.g., vehicle management measures) to maintain low emission levels.
• Promoted green burials to reduce emissions in line with the country's 14th Five-Year Plan.

Supply Chain Management

Supplier Audits: 8 suppliers audited

Responsible Procurement

• Strict supplier selection criteria including business registration, tax registration, compliance with laws and regulations, good reputation, and adequate after-sales service.

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Extreme weather

Transition Risks

• Stricter climate policies and regulations (e.g., stricter power rationing)

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: Appendix C2 of the Listing Rules of The Stock Exchange of Hong Kong Limited

Certifications: ISO 9001, ISO 14001, ISO 45001 (mentioned in previous report, not explicitly stated in this report)

Sustainable Products & Innovation

• Promotion of green burial practices (tree burial, lawn burial, flower bed burial, wall burial).

Awards & Recognition

• Various awards from provincial, municipal, and district government departments (e.g., advanced unit for funeral services, model cemetery, greening model unit, civilized unit).