Climate Change Data

SITC International Holdings Company Limited

Climate Impact & Sustainability Data (2021, 2022, 2023)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:1,711,746 tCO2e/year
Scope 1 Emissions:1,708,807 tCO2e/year
Scope 2 Emissions:2,939 tCO2e/year
Water Consumption:146,092 m3/year
Waste Generated:8,982.31 tons/year
Carbon Intensity:5.68 Ton/USD10,000 in 2021

ESG Focus Areas

  • Environmental Protection
  • Employees
  • Responsible Operations
  • Community Responsibility
  • Supply Chain Management
  • Governance

Environmental Achievements

  • Reduced greenhouse gas emissions intensity by 13.50% year-on-year in 2021.
  • Achieved a 13.57% decrease in fuel consumption per 10,000 sea miles per unit capacity in 2021 compared to 2020.
  • Reduced fuel consumption per container handled by 22% in 2021 compared to 2020.
  • Obtained 34,113 cubic meters of fresh water by seawater desalination in 2021, an increase of 8,213 tons compared to 2020.
  • Awarded the title of “Pioneer in Practicing Carbon Neutrality” for its “Environmental and Intelligent Depot Project”.

Social Achievements

  • Decreased employee turnover rate to 7.1% in 2021 from 10.29% in 2019 and 6.67% in 2020.
  • Provided 3,798 hours of training for 1,622 onshore employees (84%) and 22,277 hours for 935 crew members (100%).
  • Improved employee satisfaction scores in 2021 compared to 2020.
  • Recruited female crew members for the first time in 2021.
  • Invested HK$3.2 million in public welfare initiatives in 2021.

Governance Achievements

  • Established a sound risk management system with three lines of defense.
  • Implemented a comprehensive anti-corruption policy and training program.
  • Established the Sustainable Development Committee and Risk Management Committee to oversee ESG matters.
  • Optimized the Board structure, increasing the proportion of female directors.

Climate Goals & Targets

Long-term Goals:
  • Reduce carbon dioxide emissions intensity by 70% compared with 2008 by 2050.
  • Reduce total carbon dioxide emissions by 50% by 2050, and gradually move towards the zero carbon goal.
Medium-term Goals:
  • Reduce carbon dioxide emissions intensity by 40% compared with 2008 by 2030.
  • Reduce water consumption intensity by 20% from 2020 levels by 2030.
  • Reduce waste intensity by 20% from 2020 levels by 2030.
  • Decrease fuel consumption per 10,000 sea miles per unit capacity by 15% from 2020 levels by 2030.
  • Decrease fuel consumption per container handled by 15% from 2020 levels by 2030.

Environmental Challenges

  • COVID-19 pandemic impacting global economy, consumer activities, and supply chain.
  • Port congestion and low turnover rate of vessels and containers.
  • Shortage of effective shipping capacity and increased costs.
  • Increased number of voyages affected by extreme weather in 2021 compared to 2020.
  • Potential adverse effects from sanctions against Russia due to the Ukraine conflict.
Mitigation Strategies
  • Optimized lanes by flexibly deploying shipping capacity and closely monitoring port conditions.
  • Increased services to Chittagong, Yangon, and Vladivostok; expanded rail-sea transportation business.
  • Established new storage yards in Xiamen, Surabaya, and Semarang.
  • Improved emergency plans for extreme weather events.
  • Continuous monitoring of the development and evaluation of any sanction risks.

Supply Chain Management

Supplier Audits: 34 audits in 2021

Responsible Procurement
  • Supplier Review and Maintenance Management Process
  • Sustainability Commitment Letter

Climate-Related Risks & Opportunities

Physical Risks
  • Typhoons
  • Floods
  • Extreme weather
Transition Risks
  • IMO 2023 EEXI and CII policies
Opportunities
  • Development of energy-efficient products and new energy vessels

Reporting Standards

Frameworks Used: GRI Standards (Core Option), HKEX ESG Reporting Guide

Third-party Assurance: Hong Kong Quality Assurance Agency (HKQAA)

Awards & Recognition

  • Carbon Neutrality Practice Pioneer
  • 2nd place in Best CEO, Best CFO, Best IR Program, Best ESG by Institutional Investor
  • 2021 ‘Silk Road Maritime’ Superior Award of Shipping Service of the Year
  • Listed Company With The Most Investment Value
  • National Excellent Customs Broker
  • National Excellent Customs Declarer
  • Customer Satisfied Container Liner
  • Customer Satisfied NVOCC
  • China’s Freight Forwarding Brand Top 50

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:1,785,983 tCO2e/year
Scope 1 Emissions:1,782,454 tCO2e/year
Scope 2 Emissions:3,530 tCO2e/year
Water Consumption:177,959 m3/year
Waste Generated:8,904.29 tons/year
Carbon Intensity:81.43 g/TEU km

ESG Focus Areas

  • Environmental Protection
  • Social Welfare
  • Corporate Governance

Environmental Achievements

  • Reduced average fuel consumption and emissions per vessel by 1.78% and 2.97% respectively.
  • Achieved medium-term objective of reducing carbon emission intensity by 40% compared to 2008 ahead of schedule.
  • Delivered 20 new, low-cost, high-efficiency vessels in 2022, improving energy efficiency and fleet capacity.

Social Achievements

  • Provided 52,492 hours of training for 2,035 onshore employees and 31,392 hours for 1,102 crew members.
  • Increased total number of employees by 11% from 2021 to 3,162 in 2022.
  • Maintained a low employee turnover rate, despite an increase in 2022.

Governance Achievements

  • Restructured the audit committee to enhance independence and professionalism.
  • Established a sound sustainable development structure with key performance indicators (KPIs).
  • Improved internal management system and IT systems to further improve corporate governance.

Climate Goals & Targets

Long-term Goals:
  • Reduce carbon dioxide emissions intensity by 70% compared to 2008 and total carbon dioxide emissions by 50% by 2050; achieve net-zero emissions by 2060.
Medium-term Goals:
  • Reduce carbon dioxide emissions intensity by 40% compared to 2008 by 2030.
  • Reduce water consumption intensity by 20% from 2020 levels by 2030.
  • Reduce fuel consumption per 10,000 sea miles per unit capacity by 15% from 2020 levels by 2030.
Short-term Goals:
  • Meet IMO 2023 EEXI and CII requirements.

Environmental Challenges

  • Global economic slowdown due to the pandemic, Russian-Ukrainian conflict, energy crisis in Europe, high inflation, and interest rate hikes.
  • Decline in global consumer demand, resulting in lower cargo volume, excess shipping capacity, and lower freight rates.
  • New IMO regulations (EEXI and CII) posing higher requirements for emission reduction.
Mitigation Strategies
  • Adjusted operating leverage and maintained cost advantage and bargaining power.
  • Launched 20 low-cost, high-efficiency new vessels in 2022 and planned to deliver another 14 in 2023.
  • Actively explored and participated in the trial and development of new energy-powered vessels (e.g., leasing an LNG-powered vessel).

Supply Chain Management

Supplier Audits: Annual evaluation of supplier conditions; social responsibility assessment for qualified suppliers.

Responsible Procurement
  • Fair, open, and just supplier selection process.
  • Comprehensive assessment of suppliers based on service level, safety awareness, ethical standards, and social responsibilities.
  • Requirement for key suppliers to follow SITC's sustainable development initiatives.

Climate-Related Risks & Opportunities

Physical Risks
  • Heat waves
  • Extreme weather
  • Floods
  • Rising temperature
  • Rising sea levels
Transition Risks
  • Changes in policies and regulations
  • Enhanced market preference to environmental protection
  • Progress in environmental protection technology
  • Increase in energy costs

Reporting Standards

Frameworks Used: GRI Standards, HKEX ESG Reporting Guide

Third-party Assurance: Hong Kong Quality Assurance Agency

Awards & Recognition

  • Most Admired Companies in 2022 (Institutional Investor)
  • Most Outstanding Company in Hong Kong Transport Industry (Asiamoney)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:1,606,544 tCO2e/year
Scope 1 Emissions:1,602,635 tCO2e/year
Scope 2 Emissions:3,910 tCO2e/year
Scope 3 Emissions:919,417.12 tCO2e/year
Water Consumption:225,706 m3/year
Waste Generated:1,689.53 tons/year (non-hazardous)
Carbon Intensity:70.18 g/TEU km

ESG Focus Areas

  • Environmental Protection
  • Social Responsibility
  • Corporate Governance

Environmental Achievements

  • Reduced CO2e emissions by 10.09% (Scope 1) compared to 2022.
  • Delivered 12 new vessels in 2023 to replace older, less fuel-efficient vessels.
  • Achieved a 13.18% reduction in fuel consumption per 10,000 sea miles per TEU compared to 2020.
  • First-time disclosure of Scope 3 greenhouse gas emissions.

Social Achievements

  • Decreased employee turnover rate by 0.95% compared to 2022.
  • Provided 47,371 hours of training for crew members (50.9% increase from 2022).
  • Achieved 100% employee satisfaction in human rights survey.
  • Invested over US$570,000 in community welfare programs.

Governance Achievements

  • Established a Sustainable Development Committee to oversee ESG matters.
  • Implemented a robust risk management system, including climate risk assessment.
  • Improved the execution of risk prevention and control measures for vessel navigation risk, bunker cost fluctuation, IT system failure, and connected transaction risk.
  • Enhanced anti-monopoly and anti-competition awareness among employees.

Climate Goals & Targets

Long-term Goals:
  • Reduce carbon dioxide emissions intensity by 70% compared to 2008 levels by 2040.
  • Reduce total carbon dioxide emissions by 50% by 2040.
  • Achieve net-zero emissions by 2050.
Medium-term Goals:
  • Reduce carbon dioxide emissions intensity by 65% compared to 2008 levels by 2030.
  • Achieve at least 5% renewable energy share in shipping by 2030 (striving for 10%).
  • Reduce fuel consumption per 10,000 sea miles per unit capacity by 15% by 2030 (compared to 2020).
Short-term Goals:
  • Meet latest IMO requirements for EEXI and CII.

Environmental Challenges

  • Significant decline in freight rates per container due to increased shipping capacity and competition.
  • Stringent emission reduction requirements from new IMO regulations.
  • Climate-related risks such as extreme weather events, sea-level rise, and biodiversity impacts.
  • Potential risks associated with the downturn of the global economy.
Mitigation Strategies
  • Implemented strategies of differentiation and low cost to maintain profitability.
  • Replaced older vessels with 12 new, more fuel-efficient vessels.
  • Developed and implemented risk control plans to address climate-related risks.
  • Strengthened internal control, supervision, and whistleblowing mechanisms.

Supply Chain Management

Supplier Audits: 76 supplier visits in 2023

Responsible Procurement
  • Supplier code of conduct
  • ESG evaluation of suppliers
  • Requirements for environmental performance and human rights protection.

Climate-Related Risks & Opportunities

Physical Risks
  • Heatwaves
  • Extreme weather
  • Floods and disasters
  • Rise of global temperature
  • Sea level rise
  • Biodiversity loss
Transition Risks
  • Environmental technology changes
  • Policy and legal changes
  • Market trends and preferences
  • Increase of energy prices
Opportunities
  • Improved resource efficiency
  • Use of renewable energy
  • Development of low-emission products and services
  • Increased resilience

Reporting Standards

Frameworks Used: GRI Standards, TCFD disclosure framework

Certifications: ISO 45001

Third-party Assurance: Hong Kong Quality Assurance Agency

Sustainable Products & Innovation

  • New energy ships
  • Electric stacking machines
  • Intelligent transport vehicles

Awards & Recognition

  • Best CEO, Best CFO, Best IR Professional, Best IR Team, Best ESG, and Best Company Board by Institutional Investor.
  • Most Honored Companies in Mainland China by Institutional Investor.
  • Most Outstanding Company in Hong Kong – Transportation Sector by Asiamoney.