2023-03-30-上交所-C_D_Inc._2022_Environmental,_Social_and_Governance_Report_97页_41mb

2022 Environmental, Social, and Governance Report Summary of C&D Inc.

Core Content

This report presents the ESG performance and initiatives of Xiamen C&D Inc. for the year 2022, highlighting the company's commitment to sustainable development in alignment with the UN Sustainable Development Goals (SDGs), GRI Standards, SASB Standards, and TCFD Recommendations. The report covers the company's operations, governance, and social responsibilities, with a focus on environmental protection, social welfare, and corporate governance.

Main Business and Mission

C&D Inc. is a modern service-type enterprise with supply chain operations and real estate development as its main businesses. Its mission is to "exploit new value for more people to live a superior life". The company aims to become a leading international supply chain operator and a top-notch real estate operator in China.

Key Performance Indicators and Awards

In 2022, C&D Inc. achieved notable positions in various ESG-related rankings and received awards that reflect its strong performance in sustainability:

• Ranked 15th on Fortune China 500
• Ranked 667th on Forbes Global 2,000
• Ranked 71st on the Top 100 listed companies in China
• Ranked 30th on 2022 China Top 100 Property Services Enterprises
• Ranked 6th on Wind Finance News ESG Competitiveness Ranking List of Real Estate Companies (first half of 2022)
• Ranked 90th on 2022 Brand Value List of China Listed Companies
• Ranked 52nd on 2022 Brand Value Volatility List of China Listed Companies

The company was also awarded:

• "Best Board of Directors Award" at the 6th China IR Awards
• "2022 Wind ESG Industry Best Practice Award"
• "2022 Enterprise with Digital Influence"
• "2022 TOP10 Brand Value of Real Estate Companies"

Sustainable Development Framework

C&D Inc. aligns its sustainable development framework with the 2030 Agenda for Sustainable Development and the 17 SDGs, focusing on environmental, social, and governance (ESG) issues.

Environmental Issues

• Climate Change Mitigation: Actively research and develop digital technologies to integrate with traditional industries, reduce energy and resource consumption, and promote green transformation.
• Circular Economy: Engage in green circular economy businesses to improve resource utilization and minimize carbon emissions.
• Water Resource Protection: Optimize water resource management, improve water use efficiency, and reduce water consumption intensity, especially in water-scarce regions.
• Green Product Development: Explore sustainable product design and R&D, including green materials and green buildings, to provide environmentally friendly solutions for footwear and bag products.
• New Energy Development: Expand new energy operations and support the construction of a green, low-carbon, and circular economic system.

Social Issues

• Responsible Supply Chain: Develop a Supplier Code of Conduct and promote ethical procurement practices.
• Community Engagement: Implement a Community Policy to build mutually beneficial relationships with local communities and promote local employment.
• Employee Development: Focus on personal growth, provide competitive compensation and benefits, and improve the talent training system.
• Human Rights and Safety: Establish Human Rights Policy and Occupational Health and Safety Policy, conduct training to prevent human rights risks and ensure a safe working environment.

Governance Issues

• ESG Governance: Establish a Strategic and Sustainable Development Committee at the board level to guide ESG strategy and related matters.
• Risk Management: Implement a comprehensive risk management system, including professional, hierarchical, and process-oriented controls, to address climate change risks.
• Business Ethics and Compliance: Formulate a Business Code of Conduct, emphasizing anti-corruption, anti-bribery, tax compliance, and information security.

ESG Initiatives and Strategies

Climate Change Response

• Conduct environmental assessments during project planning and design to mitigate physical risks.
• Develop emergency management plans for natural disasters such as typhoons, floods, and earthquakes.
• Implement heatstroke prevention measures during hot weather, including adjusting working hours and providing cooling resources.
• Promote green building design, such as rooftop gardens, to reduce the impact of high temperatures.

Digital and Green Transformation

• Deepen digital technology applications in supply chain and traditional industries.
• Enhance energy efficiency and reduce carbon emissions through digital solutions.
• Support green manufacturing and circular economy initiatives in China.
• Innovate green environmental protection technology and promote sustainable product development.

Supply Chain and Real Estate Risks

• Supply Chain Risks: Address international compliance sanctions due to geopolitical conflicts, focusing on global supply chain layout and dual circulation strategy.
• Real Estate Risks: Monitor national macro policy changes and adjust business strategies accordingly. Enhance operational efficiency and product quality, while expanding diversified real estate-related businesses to mitigate external uncertainties.

Corporate Governance Structure

• Strategic and Sustainable Development Committee: Provides recommendations on ESG strategy and guides ESG-related work.
• Sustainable Development Working Group: Composed of senior management and functional department managers, responsible for implementing ESG strategies.

Conclusion

C&D Inc. has demonstrated a strong commitment to ESG development, sustainable supply chain operations, and green real estate development. The company actively participates in global sustainability standards, enhances corporate governance, and fosters collaboration with stakeholders to achieve shared prosperity and carbon neutrality.