COSContentsO SHIPPING Holdings
01
Foreword
About this Report | 2 |
About COSCO | 3 |
SHIPPING Holdings | 5 |
Message from the | |
Chairman | 7 |
Performance Highlights | |
Board Statement | 8 |
02 |
Strengthening Governance
Promoting a green future with sound corporate governance
Corporate Governance | 10 |
ESG Governance | 10 |
Risk Management | 14 |
Business Ethics | 15 |
Information Security | 19 |
03
Green Transformation
Achieving a green future through low-carbon strategy
Climate Change Response | 21 |
Green and Low-Carbon | 25 |
Development | 31 |
Implementing | |
Environmental Protection |
04
Empowering Shipping
Building a green future through exceptional services
Maritime Safety | 36 |
Sustainable Supply | 41 |
Chain | |
End-to-End Supply | 42 |
Chain Services | |
Customer Service | 47 |
05
Harmonious Development
Securing a green future with talent resources
Employment Compliance | 52 |
Rights and Interests | 52 |
Protection | 55 |
Talent Development | |
Employee Communication | 56 |
Occupational Health and | 57 |
Safety | |
06 |
Community Commitment
Giving back to a green future with corporate responsibility
Responsible Citizens | 60 |
Community Engagement | 62 |
07
Appendix
Sustainability Data | 63 |
Reporting Indicators Guidelines | 66 |
GRI Standards | 69 |
Independent Assurance | 72 |
Statement |
01
Foreword
About this Report | About COSCO SHIPPING Holdings |
Message from the Chairman | Performance Highlights |
Board Statement |
COSCO SHIPPING Holdings
About this Report
Reporting period
1 January, 2023 to December 31, 2023 (the "Reporting Period").
Scope of report
2023 Foreword 2
Reference standard
This report complies with the Environmental, Social and Governance Reporting Guide issued by The Stock Exchange of Hong Kong Limited (HKEx), the Guidelines No. 1 of the Shanghai Stock Exchange on the Self-Regulation Rules for Listed Companies- Regulated Operation and the GRI Standards issued by the Global Reporting Initiative (GRI). The compilation of this report mainly follows the following basic principles:
The scope of this report covers COSCO SHIPPING Holdings Co., Ltd. (hereinafter referred to as "the Company" or "CO- SCO SHIPPING Holdings") and its subsidiaries (hereinafter referred to as "the Group" or "We"). This report carefully selects the disclosed entities with "whether there is actual business operation" as the criterion for selection and filters out units and companies that have no actual business operation or that have actual operation with little or no impact based on the overall impact of the actual entities on the en- vironment, society and governance of the Group. We selected three first-level subsidiaries, namely : COSCO SHIPPING Lines Co., Ltd. (hereinafter referred to as "COSCO SHIPPING Lines"), COSCO SHIPPING Ports Limited (hereinafter referred to as "COSCO SHIPPING Ports") and Orient Overseas (Inter- national) Limited (hereinafter referred to as "OOIL"), as well as the subsidiaries covered by the financial reports of these three first-level subsidiaries. In case of special circumstanc- es, the statistics of specific data will be explained in the corresponding part.
Reporting version
Materiality
Quantitative
Balance
Consistency
The report shall disclose the environmental, social and governance matters that are relevant to investors and other stakeholders and will have a significant impact on them.
Key performance indicators should be measurable so that the benefits of the environmental, social and governance policies and management systems can be evaluated and verified. Quantitative data should be accompanied by explanations for their purpose and impact, and comparative data should be provided when appropriate.
The report should provide an unbiased picture of the issuer's performance. The report should avoid selections, omissions, or presentation formats that may inappropriately influence a decision or judgment by the report reader.
The issuer should use consistent methodologies to allow for meaningful comparisons of ESG data over time. The report should disclose the change of statistical methods (if any) or any other relevant factors that may affect meaningful comparison.
In case of discrepancies between the versions of this report, please refer to the traditional Chinese version.
COSCO SHIPPING Holdings
About COSCO SHIPPING Holdings
COSCO SHIPPING Holdings, a key subsidiary of COSCO SHIPPING Corporation Limited (COSCO SHIPPING Corporation) focusing on shipping and terminal operations, was established on March 3rd, 2005. The Company made its debut on the HKEx on June 30th, 2005 (1919.HK), and later on Shanghai Stock Exchange on June 26th, 2007 (601919). COSCO SHIPPING Holdings stands as a pioneering global platform for digital supply chain operation and investment platform with container shipping as the core. It plays a vital role in fulfilling the Group's vision of "create a world-class global integrated logistics supply chain service ecosystem", and is committed to providing customers with a end-to-end solution with "container shipping + port + related logistics services".
Container shipping business
The Company mainly operates international and domestic maritime container transport services and related businesses through its wholly-owned subsidiary COSCO SHIPPING Lines and indirectly controlled subsidiary Orient Overseas (International) Limited. By the end of the Reporting Period, the company operated 283 international services (including international feeder lines), 53 coastal services in China and 84 branch lines in Pearl River Delta and Yangtze River.
By the end of 2023, the Group has a fleet of 502 vessels, with a total of 31,683 berthing times, 27,749,892 nautical miles, 125,944 operating days, 26,877,048 dead weight tonnage and 16,216,860 TEU transportation capacity.
Port operation business
The Company conducts loading, unloading and stacking operations of containers and bulk cargo terminals through COSCO SHIPPING Ports. COSCO SHIPPING Ports's terminal portfolio covers five major port clusters along the coast of China and the middle and lower reaches of the Yangtze River and major overseas hub ports in Europe, the Mediterranean, the Middle East, Southeast Asia, South America and Africa etc. By the end of the Reporting Period, COSCO SHIPPING Ports operates 38 ports worldwide and manages a total of 371 berths, of which 224 are container berths, with a current target annual processing capacity of 123 million TEUs. COSCO SHIPPING Ports is committed to building a meaningful holding network around the world to provide customers with an integrated network leveraging linkage effect in cost, service, and coordination.
2023 Foreword 3
502The Group has a fleet of vessels
38COSCO SHIPPING Ports operates ports
Current annual processing capacity reached approximately
123million TEUs
COSCO SHIPPING Holdings
Economic performance
2023
175,448Audited operating income million CNY
146,755Audited operating costsmillion CNY
Audited equity holder's attributable profit (net23,860profit attributable to parent company)
million CNY
4,681Audited corporate income tax million CNY
2023 Foreword 4
Recognitions
The Group's achievements in corporate development and sustainability have been recognized and honored domestically and abroad.
COSCO SHIPPING Holdings Awards Recognition
2023.5 | 2023.6 | 2023.8 | |||
China Listed Company | The Company's shares were | 2023 Typical Case of Digital Economy Development | |||
Investor Relations Tianma | included in the constituent stocks | (Innovation) Award at the 2023 Digital Economy | |||
Award by Securities Times | of the CSI China Reform Central- | Pilot Forum organized by Securities Daily | |||
SOEs ESG Growth 100 Index | 2023.9 | ||||
2023.8 | |||||
The Company's China A (601919. SS) is included in the Hang Seng (China A) Corporate | Awarded "Top 100 ESG | ||||
Sustainability Index, the Hang Seng (Mainland and HK) Corporate Sustainability Index | Companies" in the 17th China | ||||
and the Hang Seng (China A) Corporate Sustainability Benchmark Index | Listed Companies Value Award by | ||||
2023.8 | Securities Times | ||||
2023.9 | |||||
The Company's Hong Kong stocks (1919. HK) is included in the Hang Seng (Mainland | |||||
Included in the ESG-Pioneer 100 | |||||
and HK) Corporate Sustainability Index , the Hang Seng Corporate Sustainability | |||||
Benchmark Index | Index of China Central Enterprises | ||||
2023.11 | 2023.11 | 2023.11 | 2023.12 | ||
The 25th Golden Bull Awards | List of the "Top 50 Carbon | Awarded " Excellent | Awarded the 2023 | ||
for Listed Companies - "Most | Neutralization" of the First | Case of ESG Green and | "ESG Pioneer Award" | ||
Valuable Investment Award" and | China Reform Cup · ESG | Low Carbon Technology | of Cailian Press | ||
"Golden Bull Award for Hong | Golden Bull Award | Innovation Award "of | "Zhiyuan Award" | ||
Kong Stocks" | OOIL | Xinhua Credit Jinlan Cup | COSCO SHIPPING Ports | ||
COSCO SHIPPING Holdings | |||||
Listed in the Hang Seng | Included in the Hang Seng Corporate Sustainability | Included in the Hang Seng | |||
Corporate Sustainability | Benchmark Index and FTSE4Good Index Series, and was | Sustainability Corporate | |||
Benchmark Index and rated | selected into the S&P Global Sustainability Yearbook (China | Benchmark Index and | |||
AA in Wind ESG Rating | Edition) 2023, obtaining the award of "the best 1% of the | FTSE4Good Index Series, and the | |||
global ESG score of Chinese enterprises" in the industry | CDP was rated B |
COSCO SHIPPING Holdings | 2023 | Foreword | 5 |
Message from the Chairman
I am delighted to share with our esteemed stakeholders and employees that, in the face of the evolving challenges within the global container market in 2023, COSCO SHIPPING Holdings steadfastly pursued our commitment to sustainability and our journey towards energy conservation and carbon reduction. At the heart of our governance structure, the integration of Environmental, Social, and Governance (ESG) principles into our strategic planning and daily operations signifies our dedication to not just business excellence but also corporate responsibility. The Board of Directors takes comprehensive responsibility for ESG matters, conducting regular reviews of our targets, the emerging regulatory landscape, and our strategic directives and policies. Aware of the market and public expectations to address environmental concerns, we have vigorously advanced our company's transformation towards digitalization, intelligence, and green, low-carbon operations, thereby deepening our value creation and steadfastly progressing toward our vision of green shipping.
Strengthening Governance COSCO SHIPPING Holdings is deeply committed to cultivating a culture of compliance and continuously elevating our governance standards. Centering on sustainability management, risk management, anti-corruptionefforts, and information security, we are dedicated to fostering a transparent and robust management framework that safeguards the interests of stakeholders. Through the revision of our integrated manual on risk management, internal control, and compliance management, we achieved the enhanced risk management capabilities. Moreover, with the development of a comprehensive three-yearwork plan for internal control supervision and evaluation for 2023-2025,alongside effective monitoring and evaluation mechanisms, we are bolstering our internal control systems to ensure the Company's steady navigation through the complexities of the market landscape.
Green Transformation
As pioneers in low-carbon and environmental stewardship, we are accelerating the development of our green and low-carbon fleet, establishing a secure green low-carbon fuel supply chain, and optimizing our fleet's energy efficiency to comply with new environmental regulations. During the Reporting Period, we have steadily progressed in constructing twelve 24,000 TEU methanol dual-fuel powered container ships, completed contracts for the world's first methanol dual- fuel retrofit projects for both MAN main engines and WARTSILA auxiliary engines across four vessels, and proudly launched the world's first 700 TEU all-electric container ship into service. Additionally, the successful trial of biofuels on the COSCO Venus and Sagittarius vessels marks a significant milestone in our green and low- carbon transformation journey. In terms of green terminal construction, we have achieved a shore power facility coverage rate of 100% at our domestic holding terminals, reflecting our "full coverage" commitment. Leading by example, we have issued the "Initiative on Promoting the Use of Shore Power for Vessels Docking at Ports", advocating for the advancement of shore power facilities across the industry, thus contributing collectively to the green and low-carbon shipping future.
Empowering Shipping
From a customer-centric perspective, the Group has promoted deep integration with our clients, leveraging digital and intelligent empowerment to continually enhance the efficiency of resource operations, spur product innovation, and foster synergistic development of the industry and supply chains towards mutual growth and innovation. With a "customer-first" approach, we offer secure and comprehensive supply chain solutions, underscored by our high-level professional services. Furthermore, exploring the application of various green technologies and intelligent solutions, the GSBN platform, co- developed and managed by COSCO SHIPPING Holdings, now encompasses a wide range of enterprises, including shipping, ports, banking, insurance, and cargo owners, and has introduced innovations such as blockchain bills of lading, paperless cargo release, electronic insurance policies, and e-certificates of conditions of carriage of goods. Remarkably, COSCO SHIPPING Corporation's blockchain electronic bill of lading issuance has surpassed 100,000, and our paperless cargo release service has exceeded
2 million TEUs, marking significant milestones in our journey towards a blockchain-enabled ecosystem.
Harmonious Development
Consistently, we regard our employees as our most valuable asset. To ensure an inclusive and open working environment, we uphold all standards and guidelines related to employee ethics and rights, fostering a culture of fairness, candid communication, and appreciation through clear policies and active engagement. We are committed to offering diverse and long-term development opportunities for our employees through various training programs, emphasizing the importance of a healthy and safe workplace environment aimed at achieving "zero-accident". Moreover, in our pursuit of contributing to a harmonious society, we place great importance on fostering positive community relations, addressing community needs, and collaborating with societal forces to support charitable efforts, organize community assistance, and charity sales, thereby contributing to community development and achieving both economic and social benefits.
COSCO SHIPPING Holdings | 2023 | Foreword | 6 |
2023 has indeed been an extraordinary year. COSCO SHIPPING Holdings has been honored with the Sapphire Award from the American "Protecting Blue Whales and Blue Skies" program for consecutive years and was included in the "CSI China Reform Central-SOEs ESG Growth 100 Index" and the "Hang Seng Corporate Sustainability Index Series" during the Reporting Period. These accolades not only affirm our exemplary commitment to ESG practices and transparency but also our dedication to creating value for our stakeholders and fostering sustainability. To maintain and enhance our competitive edge and capabilities, we will continue to reinforce our port and shipping synergies and bolster the competitive synergy of our dual-brand container shipping strategy, with a long-term vision focused on digital transformation. Looking ahead, COSCO SHIPPING Holdings will center its efforts on being a "global digital supply chain operation and investment platform with a core focus on container shipping," accelerating innovations in supply chain ecology, intelligent connectivity, and green low-carbon development to better empower the domestic and international dual circulation. We eagerly anticipate collaborating with all stakeholders to make a positive impact on sustainable shipping.
COSCO SHIPPING Holdings Co., Ltd.
Chairman Wan Min
April 2024
COSCO SHIPPING Holdings | 2023 | Foreword | 7 | |||||||||||||||||||||||||||||||||||||||
Performance highlights | ||||||||||||||||||||||||||||||||||||||||||
Container shipping business | ||||||||||||||||||||||||||||||||||||||||||
The capacity of COSCO SHIPPING Holdings' | Container freight volume | Greenhouse gas emissions | Total marine fuel | Sulfur oxides | ||||||||||||||||||||||||||||||||||||||
self-operated container fleet has exceeded | equivalent | consumption | emissions | |||||||||||||||||||||||||||||||||||||||
Economic | 3.04 million TEU | 26.88 million tonnage | Environmental | 19,842,941 tons | 6,165,618 tons | 114,681 tons | ||||||||||||||||||||||||||||||||||||
performance | Total fleet | Coastal routes | International | Branch lines in Pearl River | performance | Nitrogen oxides emissions | Fresh water consumption | Oil spill accident | ||||||||||||||||||||||||||||||||||
502 vessels | 53 lines | 283 lines | 84 Lines | 433,000 | 392,719 | 0 | ||||||||||||||||||||||||||||||||||||
in China | routes | Delta and Yangtze River | tons | tons | accidents | |||||||||||||||||||||||||||||||||||||
Port business | ||||||||||||||||||||||||||||||||||||||||||
Number of ports | Number of berths | Number of container berths | Greenhouse gas | Natural gas | Solar power generation | |||||||||||||||||||||||||||||||||||||
emissions equivalent | consumption | |||||||||||||||||||||||||||||||||||||||||
Economic | 38 | 371 | 224 | Environmental | 226,989 tons | 355,461 cubic meters | 2,542,791 kWh | |||||||||||||||||||||||||||||||||||
performance | Total terminal throughput | Annual processing capacity totaled | performance | Diesel consumption | Waste water discharge | |||||||||||||||||||||||||||||||||||||
135.81 million TEUs | 123 million TEU | 69,075,365 liters | 980,339 cubic meters | |||||||||||||||||||||||||||||||||||||||
Social performance
Total number of
Employment employees trained training 31,654 person
Total turnover rate | Thousands of injuries | Total number of people partic- | ||
ipating in community or public | ||||
3.94% | Safety | 2.58‰ | Community | welfare activities |
4,939 |
Total number of hours of participation in community or public welfare activities
16,496
COSCO SHIPPING Holdings
Board Statement
Board Responsibility
The Board of Directors of COSCO SHIPPING Holdings is responsible for the Group's overall ESG development direction and ESG strategy formulation, supervising and coordinating ESG-related risk management, and is the highest responsible and decision-making body for ESG matters. The Board of Directors has the ultimate responsibility for COSCO SHIPPING Holdings' ESG strategy and disclosure. The Group regularly evaluates the materiality of environmental, social and governance issues, and analyzes to makes decisions on the potential impact and opportunities of the overall strategy.
Materiality Analysis
The Group pays continuous attention to the needs of internal and external stakeholders, and identifies and evaluates material ESG issues according to the communication and feedback of stakeholders to keep improving the sustainability strategy. During the Reporting Period, the Group conducted stakeholder surveys, updated the material issues, and defined the priorities of ESG management.
2023 Foreword 8
Risk Identification
A Risk Control Committee is established under the Board of Directors, responsible for identifying, analyzing, managing, and timely controlling ESG-related risks and making decisions on ESG-related matters. The Risk Control Committee regularly reports the list of identified risks to the Board of Directors and provides risk analysis and decision-making support.
Target Progress
In 2021, the Group has set five environmental targets, including greenhouse gas emission reduction target, energy upgrade target, ballast water management target, exhaust emission reduction target, and waste reduction target. In 2023, the Board of Directors continued to pay attention to the progress towards the environmental targets, supervise sustainability tasks related to the target, and review target achievement.
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
COSCO Shipping Holdings Company Limited published this content on 06 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 May 2024 06:24:07 UTC.