Environmental, Social and Governance (ESG) Report
Board Statement
The Board of Directors of our company adheres to the requirements of the Hong Kong Stock Exchange and continuously explores and improves the organisational structure and system of ESG management, strengthening the Boards involvement in the companys ESG management. The Board and all Directors confirm that this report does not contain any false records, misleading statements or major omissions, and make the following statement regarding the Boards ESG supervision and management work:
Roles of the Board of Directors
The Board of Directors at CITIC Limited takes ultimate responsibility for the companys ESG strategy and reporting. To ensure the company’s commitment to and performance on key ESG issues, the board's Audit and Risk Committee works alongside other specialized committees and functional departments to incorporate ESG management into internal control, risk management, strategic planning, and other areas. In 2022, the Board proposed several constructive suggestions to the management regarding ESG work, including strengthening top-level design, increasing workforce, paying attention to climate change risks, and conducting roadshows and reverse roadshows for investors. The management has carefully studied and implemented these suggestions.
ESG Management Policy
Our company regularly discusses and assesses ESG risks and opportunities in alignment with our reform, development, operational, and management practices, as well as the concerns of our stakeholders. We remain unwavering in our commitment to improving relevant ESG strategies and policies. Given the significant impact that ESG issues may have on our organisation, we employ various communication channels such as information disclosure, workshops, dialogues, industry conferences, performance releases, and questionnaires to enhance communication among all parties. In addition, we conduct an annual analysis of the importance of ESG issues that are of concern to our stakeholders to ensure that we can effectively respond to their expectations and meet their needs.
Review of ESG Objectives
Our company and its subsidiaries have established annual, mid-term, or long-term management objectives for key ESG issues, such as carbon peaking and carbon neutrality, comprehensive risk management system development, clean technology investment, and R&D investment. These objectives have been reviewed by the Board of Directors, and progress toward them will be reviewed on regular basis. In 2022, we conducted multiple training sessions for management and employees on various topics related to ESG, including climate change risks, ESG ratings in capital markets, ESG development trends, and anti-corruption. Our goal is to continuously enhance our accountability and improve our performance in fulfilling our ESG responsibilities.
About this Report
This report is the 9th annual ESG report released by CITIC Limited, which details the companys ESG management and performance in areas such as compliant operations, green development, technological innovation, employee management, customer service, and community outreach in 2022. The company is committed to the truthfulness, accuracy, and completeness of the report’s content. To ensure the scientific and credible nature of ESG performance indicators, the company has engaged KPMG Huazhen LLP to conduct limited assurance procedures on selected key data in this report and issue an independent assurance report.
Scope and Period of the Report
Unless otherwise specified, the scope of disclosure in this report is consistent with the annual report and the 2021 Environmental, Social and Governance Report. The statistical time frame for key performance indicators presented in this report ranges from January 1st, 2022 to December 31st,, 2022, with some content extending to March 31st, 2023. This report has been reviewed and approved by the Board of Directors on March 31st, 2023.
Reporting Principles
This report follows the principles of importance, quantification, consistency, and balance set forth by the Hong Kong Stock Exchange in its preparation.
Importance
We have identified 20 key ESG issues by engaging in regular communications with stakeholders, following HKEX ESG guidelines, and monitoring global ESG priorities. We assessed the relative importance of these issues to our key stakeholders through questionnaires and other means. Based on these evaluations, we have identified the key issues, including occupational health and safety, customer rights protection, comprehensive risk management, and talent recruitment and retention. This report addressess these key ESG issues in response to stakeholders' concerns.
Quantification
This report provides quantified disclosure on the applicable ESG key indicators, and discloses the statistical standards, methods, assumptions and/or calculation tools, as well as the sources of conversion factors for emissions/energy consumption.
Consistency
Unless otherwise specified, this report maintains consistency in the statistical methods or key performance indicators presented, without any significant changes or factors that may affect meaningful comparisons.
Balance
This report adheres to the principle of balance and presents the ESG management performance during the reporting period in an objective manner.
Honors and Awards
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Honors and Awards Received |
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Comprehensive awards |
CITIC Bank ranked 21st in the Top 500 World Banking Brands Leaderboard and its Tier 1 capital ranked 19th in the Top 1000 World Banks as published by the British financial magazine The Banker. |
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CITIC Dicastal was awarded “Top 100 Comprehensive Enterprises in the Chinese Foundry Industry”. It ranked 50th on the 2022 Top 100 Global Auto Parts Suppliers list published by Automotive News. |
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Corporate Governance awards |
CITIC Bank was awarded the “Most Socially Responsible Bank of the Year” by Stock Star, recognized as an “Outstanding ESG Practice Case of Listed Companies” by the China Association for Public Companies, and received the “ESG Pioneer Award” from Cailian Press. It was also selected as an “Excellent Corporate ESG Case for Inclusive Finance” by Xinhua Net and the China Enterprise Reform and Development Society. |
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CITIC Securities was awarded the “Best Investment Bank for ESG Practices” and “Best Investment Bank for New Energy Industry” at the The 15th New Fortune Best Investment Bank Selection, the “Best ESG Practice Case of A-share Listed Companies” by the China Association for Public Companies, the “Green Development Award” at the 17th People’s Corporate Social Responsibility Awards, and the “Best ESG Listed Company” at the 12th China Securities Golden Bauhinia Awards. CITIC Securities was also named one of the “Top 100 Most Valuable Listed Companies” and “Top 100 Listed Companies for ESG Practices” by Securities Times for the 16th Most Valuable Listed Companies in China. |
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China Securities has won the China Securities Journal Golden Bull Award for Social Responsibility Practices, by the Chinese Securitie Industry. |
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CITIC Trust was awarded the “Best Social Responsibility Practice Enterprise for 2022” by Finance.China.com.cn and also won the “ESG Pioneer Award” at the 2022 Cailian Press. |
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CITIC Resources was honored with the “ListCo Excellence Awards 2022”, which was co-organized by Am730 and PR ASIA with the full support of iFeng.com Hong Kong Stock. |
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CITIC Environment has been recognized by China Environmental News as a “China Environmental Protection Social Responsibility Enterprise” for seven consecutive years and was selected as one of the “10 Best Corporate Public Welfare Cases” by Sina. |
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Environmental awards |
CITIC Limited was awarded as the “Leader in China’s Industrial Carbon Peaking”, ranking on the top of the list. |
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CITIC Bank has been honored with the “Top Performer in Green Bank Evaluation” by the China Banking and Insurance Regulatory Commission and the China Banking Association. CITIC Carbon Account has been selected as a brand for the Brand Power programme by CCTV, a case study for “Global Corporate Social Responsibility”. It has also received the “Global Green Finance Award-Innovation Award” at the 3rd International Financial Forum (IFF), and the “Green Finance Pioneer Innovation Award” from Shenzhen SEZ Society for Finance and Banking. CITIC Bank (International) was awarded the “Outstanding Lead Bank in Green and Sustainable Bond with Visionary Sustainable development Bond Framework (in the category of urban construction and investment sector)” by the Hong Kong Quality Assurance Agency. |
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The renovation project of Capital Mansion by CITIC Heye has won the “RICS Awards China 2022” in Urban Renovation category. |
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CITIC Environment has been awarded the “Outstanding Environmental Practice Case for Enterprise ESG in 2022” by Xinhua Net. |
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Social awards |
CITIC Limited was selected as the “Best Employment Partner” by the School of Economics, Fudan University; CITIC Securities was named the “Best Employer” by the Guanghua School of Management, Peking University. |
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CITIC Bank received the “Small and Medium-sized Investor Relations Interaction Award” from p5w.net and “Annual Pension Financial Services Bank” from Securities Times. Its rural revitalisation case was selected as an “Innovative Case of Rural Revitalisation” by the People’s Daily Economic Research Institute. |
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China Securities was awarded the “Top 10 Securities Companies for Serving the Listing of Science Innovation Enterprises” and the “2022 China Securities Industry Fintech Golden Bull Award”. |
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CITIC Pacific was awarded the “Outstanding Award for Public Welfare” and “Annual Honor Award” by the Community Chest of Hong Kong. The company received the “Caring Company Logo” from the Hong Kong Council of Social Service for seven consecutive years, for its commitment to caring for the community as a business entity for 5 years or more. CITIC Pacific also received the Bronze Award for “Excellence in Early Career Development” and “Excellence in Leadership Development” from Human Resources Online. |
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CITIC Pacific Special Steel has 14 products that were listed on the physical quality brand cultivation product list of China Iron and Steel Association. Among these products, one was awarded as “Gold Cup Supreme Quality Product” and 12 others were awarded “Gold Cup High Quality Product”. Two projects undertaken by Xingcheng Special Steel, a subsidiary of CITIC Pacific Special Steel, have won the first prize in Metallurgical Science and Technology from the China Iron and Steel Association and the Chinese Society for Metals. |
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CITIC Heavy Industries has won 12 technology awards and approved with two innovation platforms above provincial level. |
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CITIC Dicastal has won the China Machinery Industry Science Progress Award, the third prize in the Science Progress Category, and the “Outstanding Innovative Achievements in China’s Automotive Supply Chain in 2022” by the China Association of Automobile Manufacturers for its “High-Strength Lightweight Spun-forged Aluminum Alloy Wheel” project. It was also named the “2021 Lighthouse Case for Digital Transformation” at the 8th China Industry Internet Conference. |
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CITIC Construction was awarded the AAA enterprise credit grade, which is the highest certificate of enterprise credit grade in the construction industry for 2022 and was named a “Leading Enterprise for Social Responsibility Practices” by the China International Contractors Association. The Maysān combined-cycle power plant in Iraq was successfully put into operation and praised by the Iraqi Prime Minister Mustafa al-Kadhimi as a shining example of cooperation between China and Iraq. |
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CITIC Engineering΄s Intelligent Construction Platform Project was selected as a pilot demonstration for the integration and development of new-generation information technology and manufacturing by the Ministry of Industry and Information Technology in 2022. Seven projects won the Achievement Award from the Green Building Work Committee of the China Association of Construction Enterprise Management, and three projects won the China Steel Structure Gold Award. The EPC project of Grushu waterplant Phase II in Shenzhen was shortlisted for the FIDIC Project Awards. |
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CITIC Tower received one of the first batch of the China Installation Project Quality Awards (China Installation Star) from the China Association for Installation and the first batch of the National Quality Engineering Gold Award from the China Association of Construction Enterprise Management. |
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CITIC Press has won 252 significant awards from the publishing and media industry. |
ESG Management
As a comprehensive enterprise with a global reach and diversified business portfolio, CITIC Limited is confronted with ever more complicated ESG risks and challenges, which underscores the need for higher ESG management standards. In 2022, the company conducted a thorough analysis of its reform, development, and operational management practices, as well as the key concerns of its stakeholders, to determine the risks and opportunities in the ESG field. Through the implementation of a sound organisational structure, robust institutional framework, and detailed targets and measures, the company promoted ESG work at all levels of the organisation and made significant strides in improving ESG management and practices.
Organisational Structure
The company has set up a three-tier ESG management system, comprising the Board of Directors, management, and implementation. The Board of Directors provides guidance for the companys ESG work, while also supervising and evaluating the performance of the management. The management is in charge of coordinating all ESG-related work and for guiding and overseeing the implementation process. The functional departments at the headquarters and the subsidiaries are responsible for implementing specific ESG tasks.
Incorporating ESG into Our Strategy
In 2022, we introduced our company’s “14th Five-Year Plan”, covering all five major business sectors as well as talent development, business collaboration and synergy, digitalisation, technological advancements, and risk management. We’ve incorporated ESG concepts such as compliance, green and low-carbon development, anti-corruption, and shared prosperity into all of these plans. In the 14th Five-Year Plan for the New-Type Urbanisation Sector, we have clearly stated our commitment to an ecological-oriented model, which aims to promote human-centeredness, low-carbon development, as well as efficacy and efficiency in the construction of smart cities. We have integrated climate change risk management into our comprehensive risk management system, with particular emphasis on addressing climaterelated transformation risks in the 14th Five-Year Plan for Risk Management , thus actively assessing and managing relevant risks through environmental risk analysis.
Comprehensive Management Systems
We have established comprehensive management systems in various areas such as energy conservation and emissions reduction, green finance, clean technology development, overall risk management, protection of employee rights and interests, supply chain management, anti-corruption, consumer rights protection, and charitable donations, both for our company and subsidiaries. To ensure effective implementation, our headquarters have issued the Compilation of Important Company Systems . This compilation includes 157 important systems covering 12 aspects such as corporate governance, strategic and investment management, financial management, personnel management, and risk and compliance management. We review the implementation of these systems on a regular basis to ensure their effectiveness. In March 2023, we made revisions to the compilation by adding and updating 36 important systems. We intend to make these management systems available on our official website to facilitate better supervision by all stakeholders.
Corporate Accountability Requirements
In 2023, we issued the CITIC Limited ESG Guidelines , which provide a clear framework for our ESG work principles, organisational structure, management responsibilities, ESG issues management and practical requirements, stakeholder management, as well as assessment and supervision. In particular, we have benchmarked international standards such as the Global Reporting Initiative (GRI) and the United Nations Sustainable Development Goals (SDGs), and combined them with the actual situation of our five major sectors to propose more rigorous, advanced, and targeted accountability requirements.
ESG Research and Publicity
CITIC Bank, CITIC Securities, and China Securities, among other subsidiaries, have conducted extensive research on green finance, ESG investment, and related topics (please refer to the sustainability or ESG reports of relevant subsidiaries for more details). In 2022, CITIC Press planned and published several books on the “Dual Carbon strategy”, including Carbon Neutrality and Green Financial Innovation, Financial Support for Carbon Peaking and Carbon Neutrality, Speed & Scale: A Global Action Plan for Solving Our Climate Crisis Now, and Green Growth under Dual Carbon Goals. Furthermore, CITIC press partnered with Sina to organize the “2022 ESG Global Leaders Summit”. This summit attracted 135 scholars, experts, and entrepreneurs from 20 countries, representing top organisations, companies, academia, finance, and investment institutions in the global ESG industry. The summit’s video garnered over 90 million views on the internet.