Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Actively adopted energy-saving measures to improve power usage effectiveness; encouraged a paperless office; advocated environmentally friendly low-carbon travel; phased out heavily polluting vehicles; used environmental friendly and energy-saving materials and equipment in renovations; maximized natural lighting; minimized standby time of equipment; implemented the “Eight-point Code” to promote thrift and saving.

Social Achievements

• Held 466 investor education activities with 173,655 attendees; strengthened client suitability management; improved client complaint resolution mechanism; ensured a safe and stable trading system; implemented a multi-level welfare system for employees including social insurance, corporate annuity, and supplementary insurance; organized regular body checks for employees; invested approximately RMB6.06 million in employee training with 7,346 attendees in internal trainings and 436 attendees in external trainings; improved career development system for employees; provided housing assistance for young employees; organized various cultural and leisure activities for employees; implemented annual appraisal for advancement.

Governance Achievements

• Successfully listed on the Main Board of the Hong Kong Stock Exchange; improved regulatory ratings; strengthened corporate governance; enhanced information disclosure; actively initiated investor relationship management; reinforced internal control standards; continuously implemented anti-money laundering measures; strictly prevented commercial bribery, extortion, and fraud; reinforced the Chinese Walls system; combated insider trading.

Climate Goals & Targets

Environmental Challenges

• Market downturn

Mitigation Strategies

• Achieved its best performance in history (second only to 2015) despite market downturn; market-oriented reforms in management system, operational mechanism and business model; promoted the Company’s transformation to enhance competitiveness and market image.

Supply Chain Management

Responsible Procurement

• Focus on business ethics and social responsibility of suppliers; open and fair competition among suppliers; strict implementation of tendering discipline; green procurement practices (e.g., double-sided printing, discouraging extravagant packing).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3.1, UN Global Compact Ten Principles

Awards & Recognition

• 2016 Fortune China 500 (rank 40th)
• Best Securities Firm in 2016 (Financial News Office, Institute of Finance and Banking of the Chinese Academy of Social Science)
• Other awards listed in Appendix I

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social Care
• Governance

Environmental Achievements

• As a joint leader underwriter, assisted China Three Gorges Corporation in issuing green exchangeable bonds with a quota of 20 billion yuan and an actual underwriting amount of 2.25 billion yuan. No less than 70% of the raised capital was used for the construction of the Wudongde and Baihetan hydropower stations.

Social Achievements

• Continued the "One Two Three Four and Five" poverty alleviation approach, and implemented the poverty alleviation models represented by "Securities +." Procurement of agricultural products from underdeveloped areas worth 1.52 million yuan; sales of agricultural products reached 8.57 million yuan.
• Invested 1 million yuan in Xiji County, Ningxia, benefiting 1,678 registered poor farmers.
• Helped nearly 400 thousand teachers and students through the "Sunshine Caring" charity program.
• Donated 160 thousand yuan and pledged support for 220 students through the Everbright "Mingde" One-to-One Poverty Alleviation and Aid Activities; invested about 580 thousand yuan to repair and renovate local schools.
• Invested about 3.89 million yuan in infrastructure such as pensions, transportation, safe drinking water, and cultural and tourist facilities.
• Launched the "Solving Difficulties for Employees" activity and completed 216 initiatives for employees.

Governance Achievements

• Comprehensive reform of the risk management system, establishing seven significant systems and reducing risk control dead zones.
• Increased resource allocation for anti-money laundering.
• Implemented measures to prevent corruption and commercial bribery; no corruption lawsuits during the reporting period.
• Continued to implement Chinese Walls and promote compliance education and training on insider trading prevention.
• Ensured real, accurate, integrated, and fair information disclosure; no illegal information disclosure during the reporting period.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Revised Measures for the Administration of Large-Sum Procurement (2019) and the Detailed Implementation Plan

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Guidelines to State-owned Enterprises Directly under the Central Government on Fulfilling Corporate Social Responsibilities, Guidelines for Environmental Information Disclosure of the Companies Listed on the Shanghai Stock Exchange, Environmental, Social and Governance Reporting Guide (HKEx), Guidelines on Preparation of Corporate Social Responsibility Report for Enterprises in China, ISO26000: 2010 Guidance on Social Responsibility

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Numerous awards listed in the report, including Outstanding Issuer Award, Best Investment Bank, Junding Award, Outstanding Underwriter, and others.

Environmental Metrics

ESG Focus Areas

• Governance
• Social
• Environmental

Environmental Achievements

• Reduced waste at meals by 45% compared to the past through implementing a "smart catering" system.
• Achieved full coverage of four types of garbage sorting at the headquarters building.

Social Achievements

• All five state-level poverty-stricken counties assisted achieved poverty alleviation.
• Successfully obtained the registration notice of the Interbank Dealers Association for Everbright's green panda medium-term note project, with an approval amount of 3.5 billion yuan.
• Donated more than 7.5 million yuan to epidemic areas in Hubei.
• Set up a special fund of 10 million yuan for the prevention and control of COVID-19.
• Organized a total of 1115 training sessions for employees, covering 458,871 person-times.

Governance Achievements

• Established a corporate governance structure consisting of the general meeting of shareholders, the board of directors, the board of supervisors, and senior management.
• Implemented anti-money laundering and anti-corruption measures.
• Improved the risk management organization structure and strengthened credit risk management and control.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic
• Maintaining compliance in a dynamic regulatory environment.

Mitigation Strategies

• Established a leading group for responding to the epidemic and implemented an emergency response plan.
• Set up a special fund for COVID-19 prevention and control.
• Strengthened internal control and compliance measures, including employee training and information dissemination.

Supply Chain Management

Responsible Procurement

• Consideration of suppliers’ environmental and social responsibilities.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Awards & Recognition

• 11th "China Charity Award" Shanghai Nomination Award
• "2019 National Financial Pioneer"

Environmental Metrics

ESG Focus Areas

• Compliance operations
• Double carbon target
• Risk control
• Investor education
• Green development
• Inclusive finance
• Poverty eradication
• Rural revitalization
• Prevention and control of corruption risks
• Compliance management

Environmental Achievements

• Issued 17 "carbon neutral" related projects with an underwriting scale of RMB 6.06 billion.
• Issued green financial bonds with a total amount of RMB 18.61 billion.
• Reduced water consumption from 22.96 tons/person in 2018 to 12.70 tons/person in 2021.
• Reduced food waste by 45% after launching the "Cherish food and oppose waste" campaign.
• Total GHG emissions reduced from 23,085 tons in 2020 to 18,789 tons in 2021.

Social Achievements

• Helped private enterprises and SMEs raise a total of RMB 12.8 billion and RMB 3.2 billion respectively.
• Offered stock pledge service for 5 private enterprises with a total amount of RMB 239 million.
• Issued a total of 7 ABNs for loans to SMEs.
• Made an equity investment in a private enterprise (Huarai Transportation) with an amount of RMB 20 million.
• Issued three bonds to support rural revitalization, with a total amount of RMB 2 billion.
• Improved the overall effective complaints by 29%; the settlement rate was 100%, and the service satisfaction reached 99%.
• Organized rich recreational and sports activities for employees.
• Invested a total of RMB 80 million in poverty alleviation and various social welfare projects.

Governance Achievements

• Established the ESG governance structure covering three levels of "Board of Directors - Management - ESG Working Group" with clarified duties at each level.
• Updated the anti-corruption rules, established a clean governance leading group and optimized corresponding responsibilities.
• Conducted more than 107 compliance-related training sessions, with over 14,000 people participating.
• Revised five systems and established a self-assessment program to enhance its money laundering risk management capabilities.

Climate Goals & Targets

Environmental Challenges

• The impact of climate change
• Difficulty in account cancellation (addressed in 2020)
• Spread of COVID-19

Mitigation Strategies

• Implemented measures to reduce carbon emissions and resource waste.
• Promoted online handling of the whole account cancellation process.
• Carried out online investor education through various channels.

Supply Chain Management

Responsible Procurement

• Formulated and issued the "Supplier Management Specification of Everbright Securities Limited (Trial)"

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards for Sustainability Reporting, Environmental, Social and Governance Reporting Guide, Appendix XXVII to the Rules Governing the Listing of Securities on Hong Kong Exchanges and Clearing Limited

Awards & Recognition

• 2021 Golden Bull Award of China Securities Industry
• 2021 Culture Construction Award of China Securities Industry
• 2021 Golden Bull Growing Securities Company
• 2021 Golden Bull Growing Wealth Management Team
• 2021 China Jinpin Award - "Poverty Alleviation Achievement Award"
• 2021 Best Bond Underwriter of A-share
• 2021 Most Trusted Brokerage for Asset Management by Investors
• 2021 Outstanding Culture Construction Case
• 2021 China Securities Industry Junding Award
• 2021 China Securities Industry Junding Award for All-round Investment Banking
• 2021 China Securities Industry Junding Award for GEM Investment Banking
• 2021 China Securities Industry Junding Award for Brokerage
• 2021 China Securities Industry Junding Award for Inter-bank Bond Financing Team
• Fourth prize of 2021 Best Investment Advisory Team - Excellent Organization Award
• 2021 Outstanding Practice Case of Board of Directors in Listed Companies
• 2021 "National Youth Civilization"
• 2021 "Star Diamond Service Award"
• "Friendship Program of Chinese YMCA of Hong Kong" - Corporate Recognition Award

Environmental Metrics

ESG Focus Areas

• Corporate governance
• Risk management
• Compliance management
• Service to the real economy
• Addressing climate change
• Anti-corruption
• Protecting information security and customer privacy

Environmental Achievements

• Reduced office electricity consumption by approximately 30% compared to 2021; Reduced office water use by approximately 33% compared to 2021; Reduced total GHG emissions to 10,969 tons in 2022 from 18,789 tons in 2021; Underwrote RMB 5.42 billion of green financial bonds, including RMB 2.40 billion in carbon-neutral related bonds; Published 296 research reports on carbon neutrality and organized 52 conference calls related to the low-carbon industry.

Social Achievements

• Launched Golden Sunshine Manager, a securities fund investment advisory business; Improved Golden Sunshine APP with 135 new and optimized functions; Organized 2,618 training sessions totaling 585,676 hours, with 100% employee coverage; Provided door-to-door services for 37 elderly customers; Published 3,270 investment education articles on the Internet Investment Education Base, with nearly 200,000 visitors and 890,000 views; Donated RMB 7,387,100 for public welfare (including RMB 6,205,100 for rural revitalization); Launched "Little Stockbroker" financial education series for children.

Governance Achievements

• Renamed the Strategic Development Committee to the Strategy and Sustainability Committee (SSC); Formulated the Rules of Procedure of the Strategy and Sustainability Committee; Established a three-level ESG governance structure (Board of Directors, SSC, ESG Working Group); Revised the "Board of Directors' Authorization to the Management of Everbright Securities" to improve decision-making efficiency; Implemented a comprehensive risk management system incorporating ESG risks; Conducted 23 risk management training sessions with 945 participants; Conducted 80 anti-money laundering training sessions, covering more than 4,000 people; Issued a total of 235 compliance awareness articles.

Climate Goals & Targets

Environmental Challenges

• Capital market upheaval and economic downturn; ESG-related risks from climate change and regulatory policy changes; Potential information risks caused by natural disasters and severe weather conditions; Maintaining a healthy ecosystem in the supply chain; Preventing integrity risks and money laundering.

Mitigation Strategies

• Integrated ESG concepts into daily operations and comprehensive risk management; Established an ESG risk management system; Built three data centers at two locations and prepared a complete emergency plan; Implemented a green and sustainable procurement mode; Formulated the "Integrity Management Measures for Everbright Securities and Its Staff"; Optimized customer identification and analysis and reporting of suspicious transactions to improve anti-money laundering capacity.

Supply Chain Management

Supplier Audits: 230 suppliers assessed in 2022; 7 non-compliant suppliers identified and penalized.

Responsible Procurement

• Prioritizes environmentally friendly and energy-saving products; Implemented a green and sustainable procurement mode; Formulated punitive measures for suppliers violating social responsibility.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards for Sustainability Reporting (2021), SSE Guidelines for the Self-Regulatory Supervision of Listed Companies No. 1 – Standardized Operation, Appendix XXVII to the Rules Governing the Listing of Securities on Hong Kong Exchanges and Clearing Limited

Awards & Recognition

• 2022 ESG Corporate Awards (Financial institutions)
• 2022 China Securities Industry Junding Award (multiple awards)
• 2022 Golden Bull Investment Bank
• 2022 Best ABS Underwriter
• 2022 Best Underwriter for Regional Services
• 2022 New Fortune Best Investment Advisory Team (multiple awards)
• 2022 Best Service Institution of STAR Market
• 2022 Classic Case of STAR Market
• 2022 Outstanding Institution for Underwriting Non-bank Local Bonds
• 2022 China Securities Industry Junding Award for Outstanding Practice Case in Application Digital Operation
• 2022 Best Specialized Intelligence-aaS APP
• 2022 Technology Application Scenario Innovation Award for China Financial Industry
• 2022 Best Award for Rural Revitalization
• 2022 GoldenWis Award for Outstanding Investor Education

Environmental Metrics

ESG Focus Areas

• Deepening green finance
• Advancing digital finance
• Serving inclusive finance
• Encouraging sci-tech innovation finance
• Serving the real economy
• Aiding rural revitalization
• Improving corporate governance
• Reinforcing risk management
• Adhering to compliance operations

Environmental Achievements

• Reduced electricity usage for lighting, thus extending the life expectancy of lightbulbs
• Leveraged natural ventilation, reducing reliance on air conditioning systems
• Regulated the water outlet temperature for centralized air conditioning units
• Tweaked computer monitor brightness and implemented standby modes

Social Achievements

• Provided consulting and compliant handling services to 185,600 customers, and offered online customer service to 31,000 customers
• Published 5,412 investor education articles, produced 1,749 original investor education materials, and conducted 1,734 investor education events
• Assisted 96 employees in need with an aggregate of RMB 745,000
• Conducted 2,376 training sessions in 672,486.5 hours, covering all employees

Governance Achievements

• Enhanced its three-tier ESG governance structure encompassing supervision, management, and execution
• Formulated the Rules of Procedure of the Strategy and Sustainable Development Committee of Everbright Securities
• Revised several key regulatory documents in 2023, including the Everbright Securities Centralized Procurement Management Measures

Climate Goals & Targets

Environmental Challenges

• Brokerage-related customer rights protection, privacy and information security, and investor education
• Innovative green financing tools tied to investment banking
• Responsible investment related to asset management

Mitigation Strategies

• Established an Investor Protection Committee and formulated relevant management measures
• Integrated ESG risks into its broad risk management framework
• Identified material ESG issues alongside related risks

Supply Chain Management

Responsible Procurement

• Compliance management
• Supply chain management
• Business ethics
• Cooperation and exchange
• Supplier audit
• Anti-commercial bribery

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards (2021), Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 1, Environmental, Social and Governance Reporting Guide (2022 version) on Hong Kong Stock Exchange

UN Sustainable Development Goals

• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 13: Climate Action

Supporting rural revitalization, ensuring employee welfare, carrying out public welfare activities, conducting employee training, supporting green industries, promoting green operations, supporting industrial development, organizing charity activities

Awards & Recognition

• 2023 Wind Gold Analyst
• 2023 Best ESG Research Institute Wind
• China Listed Financial ESG Pioneers
• Enterprises With Excellent ESG Performance in Serving Real Economy
• 2023 Human Resource Management Excellence Award
• Excellent Employer for Professional Credibility
• 2023 China Securities Industry Junding Award for Investment Banks Underwriting IPOs
• 2023 China Securities Industry Junding Award for Projects Supporting Private Enterprises
• 2023 China Securities Industry Junding Award for ABS Teams
• China Securities Industry Junding Award for Outstanding Practice Cases of APP-Based Digital Operation
• 2023 Jinding Award for Best Classic Case of Rural Revitalization
• Annual Investor Education Works Award
• Award for Securities Companies with Outstanding Performance in Digital Transformation
• Big Data Product Innovation Award
• Award for Securities Companies with Outstanding Performance in Southbound Stock Connect Investor Education
• HKEx Special Award for Members Cooperating with SSE in Investor Education
• SSE Golden Consultant Award for Emerging Fund Investment Consulting Service Providers
• Golden Consultant Award for Fund Investment Consulting Communication
• The 6th Investment Consulting Team Best Style Award
• The 6th “NewFortune” Best Investment Consulting Team
• Best Pioneering Investor Education Video
• 2023 Typical Innovation Securities Institution for High-Quality Development and Data Governance in the New Era
• First Prize for 2022 Intro-Industry Joint Research Projects
• Digital Intelligence: 2023 Shanghai Excellent Data Management Cases
• 2023 IT New Governance Leadership Forum Annual Outstanding Innovation Case
• Best Practice Award at the 2022 Annual Performance Briefing Session
• Best Shareholder Relationship Award in the 7th China IR Excellence Awards in Roadshow
• Excellent Organization Award in the “Run for Dream” Jing’an Financial Industry Urban Orienteering Competition
• Best Pilot Award in the “Run for Dream” Jing’an Financial Industry Urban Orienteering Competition