Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainable Cities and Communities
• Quality Education

Environmental Achievements

• Reduced carbon dioxide emissions by approximately 3,040 tonnes annually through solar energy photovoltaic generation panels at Daxing Airport carpark building.
• Equipped Daxing Airport carpark building with 630 electric vehicle charging stations.

Social Achievements

• Organized a public welfare scholarship event for 22 children from Liupanshui, Guizhou.
• Donated 172 winter uniforms to Tieyuan Primary School in Long County, Shaanxi Province.
• Established a union recreational club with yoga and badminton clubs.

Governance Achievements

• Established a strict internal monitoring mechanism and developed an ESG management system.
• Implemented anti-corruption policies and whistleblowing procedures.

Climate Goals & Targets

Environmental Challenges

• Shortage of parking spaces in China leading to illegal parking.
• GHG emissions from operations and potential risks to the industry.
• Climate change and its potential effects.

Mitigation Strategies

• Improved operational efficiency through standardized and sizable operational model.
• Incorporated climate change into risk management system and future planning.
• Installed electric vehicle charging stations in carparks to promote clean energy.

Supply Chain Management

Responsible Procurement

• Adopts a rating system to select suppliers based on product and service quality, safety standards, and conduct and integrity.
• Formulated strict supplier management policies.

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products
• Investment in new energy industries.

Reporting Standards

Frameworks Used: GRI

UN Sustainable Development Goals

• SDG 4
• SDG 11
• SDG 13

Initiatives align with the goals of quality education, sustainable cities and communities, and climate action.

Sustainable Products & Innovation

• Intelligent car parking robot
• SONIC system

Awards & Recognition

• Vstartup honored with the title of Outstanding Contribution Unit in Fighting the Epidemic by the Shijingshan government.

Environmental Metrics

ESG Focus Areas

• Climate change
• Employee well-being
• Community contribution
• Environmental protection
• Supply chain management
• Corporate governance

Environmental Achievements

• GHG emissions: approx. 13,830 tCO2e
• Electricity consumption: approx. 13,796 MWh
• Implemented the “Emergency Response Plan for Freezing, Rain and Snow” and the “Emergency Response Procedure for Flood and Typhoon Prevention”
• Formulated the “Vehicle Usage Management Practices”, the “Driver Management Regulations”, and the “Energy Saving Management Rules”
• PV power station generated a total of 2.713 million kWh of electricity

Social Achievements

• Percentage of women on the Board: 25%
• Employee turnover rate: approx. 3%
• Total training hours: approx. 26,374 hours
• Investment in public welfare: approx. RMB 894,850
• Launched the first indoor GPS system in the PRC — “SONIC MAP”
• Launched the first “Digital & Intelligent P+R” management platform for public transportation
• Zero work-related fatalities for the past three years

Governance Achievements

• Established a sustainability governance structure with an ESG Committee
• Incorporated ESG factors into the Company’s investment decision-making process
• Conducted annual materiality assessments on ESG issues
• Provided five hours of “Compliance Limit and Ethical Conduct” training for all employees

Climate Goals & Targets

Environmental Challenges

• Increased frequency and severity of extreme weather events
• Potential for increased compliance costs due to stricter carbon reduction policies
• Supply chain disruptions (not explicitly stated, but implied by the focus on supply chain management)

Mitigation Strategies

• Implemented emergency response plans for severe weather
• Continuously monitors changes in laws and regulations related to climate change
• Implemented various environmental protection measures and encourages emissions reduction practices
• Adopted a rating system to select suppliers based on ESG factors
• Formulated strict supplier management policies

Supply Chain Management

Responsible Procurement

• Rating system for supplier selection
• Strict supplier management policies
• Priority given to local suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Stricter carbon reduction policies and regulations

Opportunities

• Low-carbon investment opportunities

Reporting Standards

Frameworks Used: GRI, Hong Kong Stock Exchange's Environmental, Social and Governance Reporting Guide

Certifications: ISO 9001, ISO 14001, ISO 45001

UN Sustainable Development Goals

• Goal 4: Quality Education
• Goal 8: Decent Work and Economic Growth
• Goal 5: Gender Equality
• Goal 13: Climate Action

The Group's initiatives contribute to these goals through various programs and policies.

Sustainable Products & Innovation

• SONIC parking system
• SONIC MAP indoor navigation system

Environmental Metrics

ESG Focus Areas

• Sustainable Development Management
• Environmental Protection
• Caring for Employees
• Business Ethics and Quality Services
• Community Contribution

Environmental Achievements

• Achieved a green coverage rate of 65% at the Shoucheng Times Center
• Rongshi Plaza achieved gold-level LEED certification and China Green Building Three Star Standard
• Chang’an Mills of Shougang Park achieved a green coverage rate of 47.2%
• Electricity generation: approx. 2,718MWh
• Zero administrative punishment related to environmental or ecological issues

Social Achievements

• Implemented the digital online learning initiative “Brilliance Enhancement Program” for all employees
• Introduced training programs such as the “Youth League Plan” and the “New Employee Onboarding Plan”
• Established the “Talent Scout Award” and the “Moving Water Scheme” for talent acquisition
• Allocated a total of 53,241 hours to employee training, on average 128.6 hours per employee, marking a significant increase of 155% compared to the previous year
• Achieved 0 work-related deaths or injuries for three consecutive years
• SONIC parking received commendation from property owners with 16 letters of appreciation, 6 brocade banners and 298 instances of client praise, accompanied by 77 brocade banners
• SONIC parking Daxing Airport Project ranked first in the “Arrival Airport Parking” category by the Civil Aviation Passenger Service Evaluation (CAPSE) for its satisfaction index in 2023

Governance Achievements

• Certified to three ISO certifications: quality management system (ISO9001), environmental management system (ISO14001) and occupational health and safety (ISO45001)
• Zero corruption-related investigations and cases
• Zero user privacy data breach incidents

Climate Goals & Targets

Environmental Challenges

• Increased frequency and severity of extreme weather events
• Increased average temperature
• Stricter climate management and disclosure requirements
• Emerging regulations on carbon pricing
• Increased public awareness of environmental protection
• Increased expectation from stakeholders

Mitigation Strategies

• Implemented the “Emergency Response Plan for Freezing, Rain and Snow”
• Implemented the “Emergency Response Procedure for Flood and Typhoon Prevention”
• Incorporate sustainable and climate- resilient elements into assets
• Use low-emission energy sources
• Expand the disclosure of data such as energy consumption and carbon emissions
• Explore definite low-carbon investment opportunities
• Disclose climate-related risks and opportunities in ESG reports
• Actively engage with stakeholders

Supply Chain Management

Responsible Procurement

• Scoring system for vendor selection based on product and service quality, safety standards and business ethics
• Measures for the Administration of Qualified Suppliers
• Measures for the Administration of Tendering and Procurement

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency and severity of extreme weather events
• Increased average temperature

Transition Risks

• Stricter climate management and disclosure requirements
• Emerging regulations on carbon pricing

Opportunities

• Explore definite low-carbon investment opportunities

Reporting Standards

Frameworks Used: GRI Standards 2021, TCFD recommendations, UN SDGs

Certifications: ISO9001, ISO14001, ISO45001, LEED Gold

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 5
• SDG 8
• SDG 9
• SDG 10
• SDG 11
• SDG 13
• SDG 16

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

• SONIC smart parking system

Awards & Recognition

• AAA issuer rating from China Cheng Xin International Credit Rating Co., Ltd and United Credit Rating Co., Ltd
• Green Development Service Demonstration Case award 2023
• China Enterprise Low-Carbon Transformation and High-Quality Development Demonstration Case award 2023