Implementing ESG Across Dimensions for High-Quality Green Growth

Recently, the 2-day ESG China • Innovation Annual Conference (2024) was successfully held at the Shougang Park.

This conference was jointly organized by the China Enterprise Reform and Development Research Association, the Financial Program Center of the Central Radio and Television Station, and Shougang Group Co., Ltd. Shao Ning, Deputy Director of the Finance and Economic Committee of the 12th National People's Congress, Weng Jie Ming, a member of the Standing Committee of the National People's Congress and Deputy Director of the Finance and Economic Committee, Gou Ping, a member of the Party Committee and Deputy Director of the State-owned Assets Supervision and Administration Commission of the State Council, Fang Guanghua, Vice Chairman of the All-China Federation of Industry and Commerce and Vice President of the China Private Enterprise Association, Peng Hua Gang, President of the China Enterprise Reform and Development Research Association and former member of the Party Committee and Secretary-General of the State-owned Assets Supervision and Administration Commission of the State Council, and more than 500 representatives from government departments, central enterprises, local state-owned enterprises, private enterprises, research institutions, and news organizations attended the conference to discuss the key, hot, and difficult issues of ESG.

Shougang Group has been actively promoting the organic combination of ESG and production and operation, and promoting the high-quality development of Shougang. At the meeting, the "2024 ESG Excellence Practice Report" was released, and the project of Shougang Group, "Creating a 'Golden Business Card' for Green Development and Shaping a 'New Model' for Circular Economy - Shougang Shares Empowering the New Process of Green and Low-Carbon Development in the Steel Industry," and 31 other outstanding enterprise projects were selected as excellent cases in the "2024 ESG Excellence Practice Report."

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At the same time, many companies under Shougang Group are also actively practicing the ESG concept and striving to be the vanguard in implementing the country's "dual carbon" strategy. For example, one of the operators of several projects in Shougang Park, where this conference was held - Shoucheng Holdings (0697.HK). Shoucheng Holdings has been deeply practicing the ESG development concept, providing a typical example for central and state-owned enterprises to promote the organic combination of ESG and production and operation.

Grasp the development requirements of new quality productivity, and integrate the ESG concept throughout the company's development.

For enterprises, under the drive of the "dual carbon" goal, ESG is no longer a "multiple-choice question," but has become a "must-answer question" for enterprises on the road to achieving high-quality and sustainable development. To achieve this, all industries are actively increasing investment, adopting digital and green low-carbon technologies, actively achieving green transformation, and forming a linkage effect with the improvement of company performance.

It is understood that Shoucheng Holdings actively responds to the United Nations Framework Convention on Climate Change, promotes green development strategy, and aims to achieve the country's goal of "carbon peak by 2030 and carbon neutrality by 2060." The company actively integrates the ESG concept into its own business expansion.

Shoucheng Holdings' "2023 ESG Report" shows that in terms of asset operation, Shoucheng Holdings focuses on basic areas such as parking travel and industrial parks, providing a full-cycle one-stop solution for asset holders through a comprehensive service that is full-chain, standardized, productized, and technological.

Taking the intelligent dynamic management of Boao Airport as an example, Shoucheng Holdings not only fully plays the role of a parking operator, maximizing the utilization and operation efficiency of the parking lot, but also actively assumes social responsibility by adding barrier-free passages to facilitate the entry and exit and parking of passengers with mobility difficulties.

At the same time, Shoucheng Holdings also integrates the concept of environmental protection into its parking operation business, cooperates with Li Auto, and is committed to building a super charging network covering the whole country, promoting the popularization and application of new energy vehicles.In addition to this, the company also leverages its extensive experience in infrastructure asset management to upgrade and transform the parks for which it has obtained operational rights. The company has signed a "Carbon Neutrality Demonstration Project Agreement" with the Beijing Green Exchange, actively participating in carbon-negative building technologies and practices. Among them, the Rongshi Plaza, which is scheduled for completion in 2024, has already achieved the Gold Level certification of the Leadership in Energy and Environmental Design (LEED) and the three-star standard of China Green Building during its construction process.

In terms of asset financing, on one hand, the company has promoted the process of social integration by establishing the "Beijing Shoucheng Urban Development Infrastructure Investment Fund" with Sun Insurance, creating a more harmonious and beautiful living environment for the public. On the other hand, the company has also targeted the high-tech industry, playing an active role in the development of China's high-precision technology industry by setting up the "Beijing Robot Industry Development Investment Fund."

Practicing ESG concepts in multiple dimensions to support green transformation and high-quality development

In addition to deeply integrating ESG concepts into the company's business operations, Shoucheng Holdings also implements ESG concepts in every aspect of the company's daily operations.

In terms of environmental protection, the company has implemented a number of energy-saving and emission-reduction measures, such as intelligent lighting systems, water-saving equipment, and photovoltaic power generation facilities, effectively reducing energy and water resource consumption. In addition, Shoucheng Holdings also actively promotes waste classification and recycling programs, reducing the generation of solid waste and optimizing the waste treatment process.

The 2023 ESG report released by Shoucheng Holdings shows that during the reporting period, its photovoltaic power generation facilities produced 2,718 megawatt-hours of electricity, which not only effectively reduced the annual operating costs of the parking lots but also significantly reduced energy consumption. Harmless waste has also decreased by 76% compared to the target for 2021.

It is worth mentioning that in the process of implementing and promoting the dual-carbon goals, the company has been widely recognized within the industry due to its outstanding performance. In 2023, the company was selected as a 2023 Service Trade Fair Green Development Service Demonstration Case and a 2023 China Enterprise Low-Carbon Transformation and High-Quality Development Demonstration Case at the China International Fair for Trade in Services.

Overall, based on the above measures taken by Shoucheng Holdings to practice dual-carbon goals, the company has not only achieved the goals of energy saving and emission reduction but also provided support for the company to maintain competitiveness in the context of increasingly strict global carbon emission regulations, which is conducive to helping the company successfully achieve green transformation.

In addition to the positive externalities shown in the environment, Shoucheng Holdings also places great emphasis on social responsibility and corporate governance.In terms of social responsibility, the Shougang Park operated by the company actively plans various exhibitions to convey the concept of green and environmental protection to the public, enriching the ecological and cultural atmosphere of the entire community. At the same time, the company also actively gives back to society through educational support and the donation of materials. During the reporting period, the company actively supported the "Xiao Ri Chun Hui" plan, donating second-hand computers to primary schools in impoverished areas in mainland China, reflecting the company's commitment to community development and its high regard for social responsibility.

In terms of corporate governance, Shoucheng Holdings has established a clear ESG management framework and strategy, incorporating ESG factors into the investment decision-making system through a "top-down" investment strategy. In addition, the company places great emphasis on internal compliance management and strictly enforces anti-bribery and anti-corruption policies. During this period, there were no incidents of corruption or bribery violations within the company.

The good internal environment is also reflected in customer recognition. In the fiscal year of 2023, Shoucheng Holdings received zero complaints related to products and services.

Conclusion

Thanks to its excellent management performance in ESG, Shoucheng Holdings has gained recognition from professional institutions.

Shoucheng Holdings has successively received AAA principal rating results from China Chengxin International Credit Rating Co., Ltd. and United Credit Rating Co., Ltd., and has affirmed the stability of its future development.

Through Shoucheng Holdings' ESG practices, we can learn that a company's sense of social responsibility and commitment to sustainable development are not just slogans, but are achieved through specific actions and continuous efforts. The company integrates the ESG concept into the core of its value creation, setting an excellent example for state-owned enterprises in sustainable development.