Governance
ESG Governance
The Strategy and Sustainability Committee is a specialized working body established within the Board of Directors, accountable to the Board. It is mainly responsible for researching and providing suggestions on the Company's long-term development strategy, major investment decisions, sustainability initiatives, and ESG (Environmental, Social, and Governance) efforts. The Strategy and Sustainability Committee shall convene at least once a year.
The ESG meeting working mechanism consists of the semi-annual ESG Leading Group meetings, quarterly ESG Working Group meetings, and other ad-hoc ESG working meetings. The ESG Working Group reports the progress of ESG work to the ESG Leading Group on a quarterly basis. The ESG Leading Group summarizes, discusses and makes decisions on key matters in the ESG work progress report on a semi-annual basis. Following the resolution of the Leading Group Meeting, an overall ESG work plan and annual plan shall be formulated. Upon review and approval by the Strategy and Sustainability Committee, the ESG Working Group shall proceed with work promotion and subsequent follow-up accordingly. The ESG Leading Group submits the completion status of goals and plans, the annual ESG report and other related outcomes to the Strategy and Sustainability Committee for approval annually.
According to the Administrative Measures for Environmental, Social and Governance (ESG), the Company's Strategy and Sustainability Committee is responsible for reviewing the results of the Company's ESG risks and opportunities assessment. The ESG Leading Group is responsible for organizing the identification and assessment of the Company's ESG risks and opportunities, as well as formulating and consolidating response measures. The ESG Working Group is responsible for conducting the identification and assessment of risks and opportunities related to various ESG topics, and implementing response measures.
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Business Ethics
Business Ethics Oversight and Governance
The Company's Strategy and Sustainable Development Committee is responsible for the oversight and supervision of business ethics practices and the approval of disciplinary actions on violations. The ESG Leading Group formulates and implements business ethics policies, conducts investigations into breaches of company ethics, and reports outcomes to the Strategy and Sustainable Development Committee. The ESG Working Group is responsible for regularly updating business ethics policies, organizing relevant training activities, and reporting violations to the ESG Leading Group. Representatives from each department in the ESG Working Group assist in maintaining relevant policies, participate in training sessions, and manage the whistleblowing mailbox, including registering and handling reports received.
Business Ethics Audits
The Internal Audit Department integrates anti-commercial bribery into its routine audits, including procurement, expense, and fund management audits. In addition, a dedicated anti-bribery audit is conducted at least once a year, covering key departments such as procurement, sales, finance, human resources, and administration. Furthermore, the Company engages a third-party agency at least once every three years to conduct a professional audit of its business ethics and anti-bribery practices. In 2024, a professional agency was commissioned to assess, audit, and provide guidance on the Company's business ethics and anti-bribery practices. 100% of the identified non-compliances were rectified.
Business Ethics Training
The Company has established a series of policies and guidelines, including the Code of Business Ethics, the Anti-Commercial Bribery Compliance Policy, the Reporting and Informant Protection System, and the Supplier Code of Conduct, and has strengthened business ethics training for both employees and contractors.
In 2023, the Company introduced an online mandatory course titled Employee Code of Conduct, featuring integrity management as a key component. This comprehensive guidelines on integrity and anti-commercial bribery systems, policy statements, the code of conduct that employees must adhere to, as well as information on reporting channels and whistleblower protection clauses. The training achieved 100% participation from all required personnel and met the intended effect, with a 91.80% completion rate for the final assessment.
In 2024, the Company conducted a company-wide anti-bribery compliance training session, with an online course and a corresponding assessment. The training introduced the concepts of "commercial bribery" and "commercial bribery compliance risks," provided an overview of the Company's anti-bribery policy and compliance system, offered scenario-based analysis of various business contexts, and clarified the anti-bribery requirements for each scenario with examples. The training also explained the consultation and whistleblowing channels, along with measures for dealing with violations. The one-hour training achieved 100% participation from all required personnel and met the intended effect, with a completion rate of 99.19% in the final assessment.
In our daily operations, we strengthen anti-corruption training and awareness campaigns for our suppliers and are committed to putting an end to all anti-corruption activities. By the end of 2024, we have completed the signing of the Supplier Code of Conduct with 100% of our type I core suppliers.
Investor Relations Management
We actively communicate with investors and value their recommendations and opinions. We interact with investors through various channels, including the investor hotline and email, SSE E-Interactive platform, General Meeting of Shareholders and briefings on performance. At the SSE Roadshow Center in 2023, we held 3 online performance meetings for periodic reports and extensively exchanged with investors on the operations of the Company. In addition, we hosted 3 investor conference calls with an average attendance of about 370 investor institutions to exchange views on topics such as the Company's operations and industry outlook. We held 3 General Meetings of Shareholders to exchange views with participating shareholders on major issues to be considered, as well as other matters of concern to investors.
