Climate Change Data

Environmental Metrics

ESG Focus Areas

• Compliant operation
• Investor protection
• Customer service
• Personnel development
• Social charity
• Real economy service
• Green finance
• Green operation
• Sustainable development
• Poverty alleviation

Environmental Achievements

• Total issuing scale of RMB 38.5 billion in green bonds in 2017.
• Won Outstanding Energy-Saving Company Award and Outstanding Organization Award in the energy saving and emission reduction competition of key energy consumers of financial system in Shanghai.

Social Achievements

• Launched e-learning platform of Haitong Wealth Management Academy 2.0, providing customized training services.
• Completed a charity donation of nearly RMB 10 million in total.
• Actively participated in national poverty alleviation strategy, with contributions in financial poverty alleviation and industry poverty alleviation.
• Established a 7*24 inquiry and complaint channel, significantly improving customer service quality and efficiency.
• Improved eligibility management system, strengthening investor protection.

Governance Achievements

• Revised Articles of Association twice to further improve corporate governance system.
• Amended Connected Transaction Management Measures to enhance transparency.
• No major non-compliance incident occurred in 2017, rated Class AA under Category A by the CSRC.

Climate Goals & Targets

Environmental Challenges

• Increasingly fierce industrial competition and tight industrial supervision.
• Diverse investor needs and complicated investment environment.
• Financing difficulties encountered by green enterprises and green projects.

Mitigation Strategies

• Followed business philosophy of “pragmatic, pioneering, prudent and excellent”, insisted on compliant operation, and built layered risk management organization.
• Improved eligibility management system and actively carried out investor education.
• Established a comprehensive financial service system integrating online and offline development.
• Issued green bonds to provide financing to green enterprises and green projects.

Supply Chain Management

Supplier Audits: 37 suppliers through bidding/170 total suppliers

Responsible Procurement

• Purchasing Management Measures of Haitong Securities

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Green bonds

Awards & Recognition

• Shanghai Financial Innovation Award (three consecutive years)
• Financial Poverty Alleviation Award 2017
• Outstanding Energy-Saving Company Award
• Outstanding Organization Award

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Risk Management
• FinTech-empowered Development
• Serving the Real Economy
• Sustainable Finance
• Precision Poverty Alleviation
• Employee Development
• Environmental Protection
• Investor Protection
• Community Engagement

Environmental Achievements

• Reduced GHG emissions by 7.20% year-on-year to 8,591.36 tons of CO2 equivalent.
• Reduced energy consumption in data centers through cloud computing and virtualization, saving approximately 4.42 million kWh of energy and reducing CO2 emissions by approximately 3,109 tons.
• Reduced paper use through paperless office initiatives, saving approximately 949,650 sheets of paper.

Social Achievements

• Implemented a “Know Your Customer (KYC)” principle for suitability management.
• Carried out investor education programs reaching over 100,000 customers.
• Launched the “Haitong · Love Flies” rural teacher training program, training 21 teachers from 9 counties.
• Donated RMB 22,295,100 for precision poverty alleviation, helping lift 2,924 registered poor households out of poverty.
• Employee satisfaction survey showed 96% satisfaction.

Governance Achievements

• Re-elected the Board of Directors and the Supervisory Committee in compliance with laws and regulations.
• Improved information disclosure mechanism, disclosing 87 extraordinary announcements for A-shares and 179 overseas regulatory announcements for H-shares.
• Strengthened credit risk management by formulating group-wide policies and procedures, creating internal rating models, and implementing a group-wide risk data mart.
• Strengthened AML compliance by issuing relevant administrative measures and conducting extensive training programs.

Climate Goals & Targets

Environmental Challenges

• Economic slowdown and defaults on pledged shares and bonds.
• Supply chain disruptions (implicitly mentioned due to reliance on external suppliers).
• Maintaining cybersecurity in a rapidly evolving technological landscape.

Mitigation Strategies

• Implemented robust credit risk management system with T+1 measurement of credit risk indicators.
• Developed alternative sourcing strategies (implicitly mentioned through responsible procurement practices).
• Built a Security Operations Center (SOC) to enhance cybersecurity protection.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Measures for Procurement Management, emphasizing business ethics and social responsibility.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, Hong Kong Stock Exchange's ESG Reporting Guide, Shanghai Stock Exchange's Guidelines on Environmental Information Disclosure

Certifications: CMMI3

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 2019 Service Innovation Award
• 2019 Shanghai Model Project in Cloud Computing Application
• Numerous other awards listed in the report

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Climate Change

Environmental Achievements

• Greenhouse gas emissions per unit area maintained below 0.1 tCO2e/m2 by 2025 (target); 0.08 tCO2e/m2 achieved in 2022.
• Power consumption per unit area reduced by 6% by 2025 (target); 131.29 kWh/m2 in 2022.

Social Achievements

• Not disclosed

Governance Achievements

• Established a four-level ESG risk management structure comprising the Board of Directors, management, Risk Management Department, and relevant business departments.
• Revised Guidelines of Haitong Securities Co., Ltd. (Group) for Client ESG Due Diligence.
• Developed ESG management capability scorecards for investment and financing businesses in mining, raw material processing manufacturing, and pharmaceutical manufacturing.

Climate Goals & Targets

Environmental Challenges

• Market risks related to growing concern over green financial products and services.
• Policy and legal risks due to successively coming out climate-related policies.
• Credit risks impacting customers the company guarantees, investments, and securities margin trading.

Mitigation Strategies

• Establish a climate change risk management mechanism.
• Identify climate-related risks and opportunities relating to the Company’s operations according to the TCFD framework.
• Develop green finance business and provide financial services for energy conservation, environmental protection, new energy, and other green industries.
• Develop green financial products such as energy conservation, environmental protection, and carbon neutrality funds.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Market shifts
• Regulatory changes

Opportunities

• Development of green financial products and services

Reporting Standards

Frameworks Used: TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Green financial products

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Green finance
• Social responsibility
• Rural revitalization
• Poverty alleviation

Environmental Achievements

• Haitong Bund Finance Plaza received LEED Gold and WELL Building Standard Platinum certifications.
• Haitong Securities Zhangjiang High-tech Park Photovoltaic Project generated 27,900 kWh of electricity, saving 11.16 tons of coal equivalent.
• Underwrote and issued 23 green bonds, raising RMB103.2 billion.
• Provided green equity financing services, raising RMB7.3 billion.

Social Achievements

• Contributed RMB684 thousand to public welfare areas.
• Carried out "one company to one county" and "hundred enterprises in support of hundred villages" paired assistance programs.
• Launched "Love in Haitong • Helping Growth" public welfare program.
• Organized a capital market public welfare investment education event.

Governance Achievements

• Complied with the CG Code and followed substantially all the requirements of the recommended best practices.
• Held 17 meetings, including Board, Supervisory Committee, and committee meetings.
• Implemented a comprehensive risk management system.

Climate Goals & Targets

Environmental Challenges

• Compliance risks related to practitioner behavior and sponsor work verification.
• Market risks due to macroeconomic divergence, securities market fluctuations, and low investment sentiment.
• Credit risks related to various financing businesses.
• Liquidity risks due to unmatched asset-liability structure and market changes.

Mitigation Strategies

• Improved system construction and internal control mechanisms.
• Enhanced compliance training and inspection.
• Optimized position structure of domestic equity and derivatives trading business.
• Implemented diversified investment strategies and hedging instruments.
• Strengthened credit risk management system, including intelligent warning center and credit risk rating.
• Optimized asset allocation structure and liquidity risk analysis framework.
• Maintained good relationships with major commercial banks and kept financing channels open.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Certifications: LEED Gold, WELL Building Standard Platinum

Third-party Assurance: PricewaterhouseCoopers

Awards & Recognition

• 2022 Shanghai Economic and Financial Research Mechanism Excellent Research Results Comprehensive Award (3rd prize)

Environmental Metrics

ESG Focus Areas

• Carbon emissions
• Green finance
• Sustainable investment

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• ESG policy implementation may not meet expectations
• Slow progress in ESG practices among domestic institutions
• Risk of factor failure
• Risk of model misspecification
• Systematic market risk

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed