Zhitong Finance App News. Recently, Haifeng International (01308) released the “2023 Environmental, Social and Governance Report” to showcase the Group's policies and performance in environmental, social and governance management and corporate sustainable development, as well as the implementation of economic, environmental and social responsibilities in 2023.

Haifeng International Holdings Limited (hereinafter referred to as “Haifeng International” or the “Company”) is a leading shipping and logistics group company in Asia, providing integrated transportation and logistics solutions. According to reports, Haifeng International focuses on serving the Asian trade market. According to data from independent industry consultant Drewry Maritime Services (Asia) Pte Ltd, this market is the world's largest trading market in terms of traffic volume, and is also one of the fastest growing markets. As of December 31, 2023, Haifeng International ranked 13th among global container shipping companies in terms of capacity.

Looking back at Haifeng International's ESG development initiatives in 2023, the company further refined the implementation and execution of environmental KPIs, incorporated environmental KPIs into the performance assessments of the CEO and other executives; held several internal ESG data collection trainings to improve the accuracy and scientific nature of the data; expanded the scope of greenhouse gas disclosure, disclosed Scope 3 emission data for the first time, completed external certification of ESG reports for three consecutive years, and was recognized by a third party agency; for the first time, the TCFD disclosure framework was included in the ESG report.

Environment: Ships using new environmentally friendly fuels have begun to be gradually replaced to optimize transportation and logistics processes

In terms of environmental protection, Haifeng International said that during operation, the company has always adhered to the environmental policy of “ensuring safety, protecting the environment, and safeguarding health”, adopted a perfect environmental management system, properly handled all kinds of pollutants, continuously promoted energy saving and emission reduction, and always integrated the reduction of resource consumption and pollutant emissions into the company's daily operation and management. In all activities of ship operation, the company focuses on protecting biodiversity, actively promoting the industry to fulfill its social responsibilities, and promoting harmonious coexistence between man and nature.

According to the report, Haifeng International's environmental management policy clearly covers seven major areas of production, operation and commercial facilities, products and services, distribution and logistics, waste management, suppliers, service providers and contractors, other major business partners, and due diligence, mergers and acquisitions. The aim is to ensure that the overall operation of the company minimizes the impact of the company's overall operation on the environment and enables our business to make substantial progress in environmental sustainability.

Among them, Haifeng International said that it has begun to gradually replace ships using new environmentally friendly fuels, install energy saving and pollution control equipment for ships, optimize transportation and logistics processes to reduce carbon emissions and other environmental impacts, and has adopted optimized transportation routes and promoted the use of green land logistics vehicles as its own goals.

Sustainable social development: use green energy and environmentally friendly raw materials as much as possible, and adopt a green and environmentally friendly supply chain

Haifeng International adheres to a sustainable development strategy and is committed to taking a number of environmental and social initiatives.

In terms of environmental protection, Haifeng International complies with relevant environmental regulations, reduces exhaust gas and greenhouse gas emissions, meets environmental requirements, reduces the generation of harmful and harmless waste; protects natural resources, uses green energy and environmentally friendly raw materials as much as possible, and effectively uses various resources (including other raw materials such as energy and water).

On the social side, Haifeng International complies with relevant laws and regulations and reasonably formulates systems relating to remuneration and dismissal, recruitment and promotion, number of working hours, vacation, equal opportunity, diversity, anti-discrimination, and other treatment and benefits; providing employees with a safe working environment to protect employees from occupational hazards; providing employees with training opportunities to improve their duties, knowledge and skills; prohibits child labor and forced labor; uses a green and environmentally friendly supply chain to demand the environmental performance of suppliers, provide customers with safe and environmentally friendly products, and protect customers' privacy rights; resolutely Oppose bribery, extortion, fraud and money laundering, and develop effective prevention measures; actively participate in social welfare undertakings.

Supply chain management: Propose an intelligent transformation and construction plan for the supply chain and release an oil-to-electricity initiative

In terms of supply chain management, Haifeng International is involving its suppliers in new sustainable development initiatives and management models - supply chain management initiatives, supplier codes of conduct, to ensure the good performance of suppliers and maintain equal and transparent supplier relationships by ensuring compliance with and application of business ethics, occupational health, safety, environmental, social and corporate governance (ESG), and the Supplier Code of Conduct (SCOC).

Haifeng International is committed to incorporating sustainability issues into the selection of suppliers in every process. According to its latest sustainable development goals and sustainable supply chain plan, Haifeng International mainly achieves responsible and efficient supply chain management in four areas: supply chain ESG plans, ESG evaluation practices, key supplier KPIs, supply chain climate transformation risk management, and intelligent transformation and construction plans.

Among them, in terms of intelligent transformation and construction of the supply chain, Haifeng International believes that some of its yard suppliers have a low level of intelligence and electrification, which is not conducive to the low-carbon progress of the value chain. Therefore, it has released an oil-to-electricity initiative to support the company's yard suppliers to carry out energy transformation and equipment updates. This is an initiative to increase investment in the industry's potential climate transformation risks. It is also a supply chain low-carbon and intelligent level construction plan, covering Haifeng International's 125 internal and external yard suppliers. According to statistics, Haifeng International currently has at least 3 depot suppliers that have implemented oil to electricity transformation plans, accounting for 2.5% of the suppliers that Haifeng International currently believes there is more room for improvement.

Yang Xianxiang, Chairman of Haifeng International, said, “Sustainable development is a development strategy that the company has always adhered to. Energy saving and emission reduction and efficient use of natural resources are not only intrinsic requirements for the company to improve efficiency and achieve sustainable development, but also the general trend of protecting the environment, protecting the planet, and benefiting future generations.” Looking ahead to 2024, he pointed out that the company's business is focused on Asia and is confident that it will continue to use its unique advantages to provide customers with low-carbon, environmentally friendly, high-quality supply chain services, and create higher value for all stakeholders in society.

(Link ESG researcher Chu Yunwei)