Climate Change Data

Environmental Metrics

ESG Focus Areas

• Product Responsibility
• Employee Care
• Community Investment
• Environmental Protection
• Users' Privacy
• Information Security
• Quality Service
• Network Security
• Supply Chain Management
• Anti-Corruption

Environmental Achievements

• Reduced GHG emissions (Scopes 1 and 2) from 72,351.19 tonnes in 2019 to 62,307.48 tonnes in 2020.
• Implemented energy-saving measures such as using LED lighting and optimizing air conditioning temperature.

Social Achievements

• Resolved 4,200 effective customer complaints.
• Launched various employee care initiatives, including annual health checkups, psychological counseling, and employee activities.
• Implemented a comprehensive complaint management system.
• Improved the self-service resolution rate by 19% through an intelligent navigation system.

Governance Achievements

• Established an ESG management framework including the Board of Directors, senior management, and a working group.
• Implemented a robust anti-corruption mechanism, including a Discipline Inspection and Supervision Committee and a Sunshine Code of Conduct.
• No corruption lawsuits occurred during the reporting period.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic significantly impacted the tourism industry and business operations.
• Potential impact of extreme weather events on business operations.

Mitigation Strategies

• Implemented various safeguards for users during the pandemic, including cancellation and alteration policies and emergency funds.
• Launched the “Hit the Road” initiative to support partners and revitalize the tourism industry.
• Established emergency procedures and response mechanisms for extreme weather events.

Supply Chain Management

Responsible Procurement

• Strict admission criteria for suppliers.
• Regular assessment and rating of suppliers.
• Supplier Evaluation Scheme Focusing on Social and Environmental Risks.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather (typhoons, rainstorms)

Reporting Standards

Frameworks Used: ESG Reporting Guide (Hong Kong Stock Exchange)

Certifications: ISO 27001 (Information Security Management System), China Healthy Workplace Certification

Awards & Recognition

• Unit with 5A Credit Rating of Labour Security
• Top 100 Innovative Private Enterprises of Jiangsu Province
• 2020 The Reputation List of China Listed Companies Award
• 2020 CSR Competitiveness – Corporate Social Responsibility China Excellence in Poverty Alleviation of the Year Award
• 2020 Top 100 Internet Enterprises of China
• 2020 Jiangsu Province Network Poverty Alleviation Excellent Case
• 2020 National Network Poverty Alleviation Ten Major Cases
• Industry Award of the Year
• Most Growing Technological Listed Company Award
• TTG China Travel Award--Selected Travel Tech
• Best New Economy Company
• Best Culture and Travel Public Group
• Most Influential Employer
• Most Talent-appreciated Employer

Environmental Metrics

ESG Focus Areas

• Product responsibility
• Business ethics and anti-corruption
• Supply chain management
• Employee management
• Environmental protection
• Community investment
• User privacy
• User security
• Network security
• Quality service
• Credible and compliant operation

Environmental Achievements

• Obtained ISO 14001 certification of environmental management system
• Commitment to reduce Scope 1 and Scope 2 carbon emissions intensity by 15% by the end of 2030 compared to 2021

Social Achievements

• Launched Lindu Warm Village, awarded the “Demonstration Project of Urban and Rural Leisure Integration”
• Annual training covering more than 86.8% of employees
• Average annual training hours of 8.2 hours per employee
• Over 200 hours of psychological consultation for employees via EAP
• 46.64% female employees
• 42.94% female in management

Governance Achievements

• 100% of employees and board members participated in integrity training
• Obtained the certificate of International Customer Service Standardization Certification Body (COPC Inc.)
• First call resolution rate (FCR) of complaints within 2 hours reached more than 95%
• Obtained ISO 27001 Information Security Management System certification, covering more than 80% of the Company’s business
• 100% of employees were trained in data security training
• 3 employees have been awarded the Personal Information Protection Engineer certificate and the Enterprise Compliance Engineer qualification
• A total of 6 special ethics audits were carried out

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 epidemic
• Extreme weather events impacting business operations
• Potential server failures due to rising global temperatures
• Data security risks

Mitigation Strategies

• Established disaster response procedures and mechanisms for extreme weather
• Equipped server room with high-reliability and high-availability disaster recovery plan
• Implemented various measures for server data security in harsh weather
• Strengthened information security management capabilities
• Formulated Data Security Management Policy
• Established a security emergency response center
• Implemented continuous self-inspection and self-rectification for the compliance of APPs

Supply Chain Management

Supplier Audits: 6 special ethics audits; regular checks on suppliers for personal information protection

Responsible Procurement

• Strict supplier access qualification review and management mechanism
• Supplier Evaluation Scheme Focusing on Social and Environmental Risks
• Anti-bribery agreements with suppliers
• Fair-Trading Guarantee Agreement

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather (typhoons, rainstorms)
• Rising mean temperatures impacting server operations

Transition Risks

• Low exposure due to limited large-scale production activities

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ESG Reporting Guide (Hong Kong Stock Exchange)

Certifications: ISO 14001, ISO 45001, ISO 27001, COPC Inc.

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Lvzhi Cloud CMS

Awards & Recognition

• ESG Pioneer Award
• 2022 Listed Companies Annual ESG Investment Selection
• Top 100 Enterprises in China’s Internet Comprehensive Strength
• 2021-2022 China Internet Industry Self-discipline Contribution and Public Welfare Award
• 2022 Cultivate Integrity Management Benchmark Enterprises
• 2021 Suzhou 5A Labor Security Credit Unit
• Most Socially Responsible Listed Company
• Most Influential Award
• Annual Most Growing Brand
• Annual Socially Responsible Award
• Annual Demonstration Unit of the Digital Trade Committee
• Top 100 Innovative Private Enterprises of Jiangsu Province
• Top 100 Service Enterprises of Nanjing
• Suzhou Software and Information Service Industry “Lead Goose” Enterprise
• 2022 Metaverse Industry Application and Pioneer Technology Gold Award
• 2022 Best Life Service Mini Program Award
• 2022 Annual Innovative Smart Marketing Award
• Public-Private Linkage Award
• Best Industry Discovery Award
• 2021 Top 10 Consumer Innovation Cases

Environmental Metrics

ESG Focus Areas

• Climate Change
• User Privacy and Security
• Customer Service
• Employee Rights and Interests
• Business Integrity and Anti-corruption

Environmental Achievements

• Reduced Scope 1 and Scope 2 carbon emissions intensity by 8.96% compared to 2021 (59.73% of the 15% reduction target by 2030)
• Installed solar photovoltaic panels in office buildings in Suzhou and Beijing
• Launched a photovoltaic energy storage project in Beijing office building with an annual electricity generation capacity of 150,000 kWh

Social Achievements

• Launched the “Tongcheng Thousand Villages Program” to help villages build sustainable tourism models
• Launched various initiatives through “Tongcheng Shelter” charitable hotel alliance to provide resting areas and shelters for users
• 50.99% female employees, 51.46% female in management
• Annual training covering more than 88.77% of employees
• Over 180 hours of psychological consultation for employees via EAP
• First call resolution rate (FCR) of complaints within 2 hours reached more than 95%
• Campus service stations in 5 universities providing social practices and employment opportunities

Governance Achievements

• 100% of employees and board members participated in integrity training
• A total of 6 special ethics audits were carried out
• Obtained ISO 27001 Information Security Management System certification, covering more than 80% of the Company’s businesses
• 100% of employees were trained in data security
• Obtained ISO 45001 certification of occupational health and safety management system and “China Healthy Workplace Certification”

Climate Goals & Targets

Environmental Challenges

• Extreme weather events impacting business operations and causing cancellations/changes to user trips
• Server failures due to rising global temperatures and extreme weather events
• Challenges in helping supply chain partners comprehensively reduce ESG risks

Mitigation Strategies

• Established disaster response procedures and mechanisms for extreme weather
• Equipped server room with a high-reliability and high-availability disaster recovery plan
• Established a progressive ESG management strategy for supply chain management, including risk screening, assessment, and supplier support

Supply Chain Management

Supplier Audits: Online reviews of all suppliers

Responsible Procurement

• Supplier Code of Conduct
• ESG factors incorporated into supplier management system
• Targeted ESG risk screening indicators
• Desktop and on-site assessments of suppliers’ ESG risks
• Corrective and enhancement initiatives for suppliers failing assessments
• Prioritizing environmentally conscious suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (typhoons, rainstorms)

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix C2 to the Stock Exchange of Hong Kong Limited’s Listing Rules)

Certifications: ISO 27001, ISO 45001, ISO 14001, COPC Inc.

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 5: Gender Equality
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 11: Sustainable Cities and Communities
• Goal 13: Climate Action
• Goal 17: Partnerships for the Goals

See Appendix II for details

Awards & Recognition

• S&P Global’s Sustainability Yearbook (China) 2023
• AA in MSCI ESG ratings
• Various awards listed in the report