Corporate Governance

ESG Management Structure

The Board is responsible for formulating the overall development strategies of the Group and maintaining effective supervision over the management, as well as reviewing and approving the annual ESG report. Under the supervision of the management, the sustainable development duties are jointly carried out by various functional departments and promoted to various subsidiaries for implementation, so as to implement specific tasks and regularly summarise the performance of sustainable development efforts, laying a foundation for the systematic implementation of sustainable development actions in the future.

Compliance and Risk Management
A sound risk management and control mechanism is of paramount importance for managing risks and seizing opportunities. The Group has established a comprehensive risk management system in accordance with the Measures for Risk Management (《风险管理工作办法》) and established the elements of efficient implementation of internal control and risk management, including the establishment of a functional system for risk management within the corporate, the formulation of risk management strategies, the implementation of regular material risks assessment, the identification of material risks and the allocation of responsibilities, so that the potential risks in the business environment can be prevented and controlled.
The Group has formulated corresponding risk response strategies targeting material ESG risks. Each department implements corresponding risk management and control measures in daily duties to prevent the occurrence of material risk events. Meanwhile, the Group also continuously monitors and controls ESG risks with low-risk levels to ensure long-term and stable business development.

Board Independence and Diversity
The Company believes that a diverse governance structure is beneficial to enhancing sustainable development performance and has formulated a Board Diversity Policy (《董事会成员多元化政策》). In designing the Boards composition, comprehensive consideration will be given to various aspects such as gender, age, cultural and educational background, ethnicity, professional experience, skills, knowledge and length of service, etc. The Company will gradually implement the plan of achieving gender diversity of the Board in accordance with the provisions of the Corporate Governance Code to continuously enhance the overall effectiveness of sustainable business operations and shareholder value. As of 2 September, 2022, one female independent non-executive Director was newly appointed to constantly promote board diversity.

The Group regards integrity, honesty, openness, and transparency as the foundation of its business operations, and conscientiously complies with the laws and regulations and the requirements of regulatory authorities of the places where the Group operates. In order to continuously improve the level of business integrity and corporate governance, the Group has improved the integrity risk investigation mechanism and the anti-corruption system, practiced procurement integrity, established an extensive and open whistleblowing channel and actively promoted anti-corruption education.
On 9 November 2021, the Group held the anticorruption warning education conference to analyse and share typical anti-corruption cases with directors and employees. A total of 429 people participated in the conference.