COSCO SHIPPING : 2023 Sustainability Report

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.