ESG Management
Following the CSR philosophy of Integrated Capacity and Infinite Capability, COSCO SHIPPING Energy actively communicates with stakeholders such as customers, the government, investors, partners, employees, communities, and environments to fully understand effectively and respond to their demands and work with them in taking practical and effective CSR actions toward the United Nations Sustainable Development Goals, and contribute to social, economic, and environmental development.
Management Structure
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COSCO SHIPPING Energy continues to improve the ESG management structure to see that ESG management is fully integrated into corporate governance. The Board of Directors, the highest decision-making body responsible for the Company’s ESG matters, including ESG strategy and reporting, plans and reviews
overall ESG management work.
Materiality Analysis
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According to the material topics stipulated by the GRI Standards and Environmental, Social and Governance Reporting Guide (HK-ESG), COSCO SHIPPING Energy has formulated the process, and has prioritized the material topics according to global standards. In addition, based on the trends in the industry, benchmarking results and studies on stakeholders, we have selected corresponding material topics. In 2021, we conducted a materiality survey on internal and external stakeholders. The Board of Directors confirmed 22 material topics based on the survey results and the evaluation of major material topics. We ranked these material topics according to their economic, environmental, and social impact, and their impact on the decision-making of stakeholders, and determined the priorities of the Company’s ESG management and information disclosure to better respond to stakeholder concerns.
Role of the Board of Directors in ESG Management
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The Board of Directors is the ESG decision-making body in charge of ESG management of the Company.
As stipulated in the Articles of Association, Rules of Procedure of the Board of Directors and Implementation Rules of the Strategic Committee, the Board of Directors establishes policies and supervises operations on sustainable development, environment, society and corporate governance; the Strategic Committee under the Board of Directors is responsible for development of ESG strategies, goals, evaluation mechanisms and proposals; the executives are responsible for enforcing ESG management.
The Safety Committee is the decision-making unit for the Company’s operational safety, which is led by the president and safety-in-charge executives of the Company, and includes the head of subsidiaries. This Committee plays a crucial role in managing the Company’s safety issues.
Safety
Goal Setting: We set the annual safety goals which are included into the Performance Report of the Board of Directors, together with the safety management.
Supervision and Management: In 2021, the Safety Performance Report was included in the deliberation of the Board of Directors, covering the Company's safety and environmental protection performance in 2021, as well as safety and environmental management goals and key work in 2022.
Implementation: The Safety Management Committee is set up to manage operation safety under the corresponding system integrating the ship management center, the safety supervision department and the technical support department.
Performance Management: The Liability Statement for Work Safety and Environmental Protection is signed, which directly links safety management performance such as the number of work safety accidents and the number of major hidden dangers that are not discovered or reported in time with the performance of the management and their remuneration to see that responsibilities are fulfilled and performance is improved.
Environment
Goal Setting: We set short-term and long-term environmental goals and identify directions for environmental management.
Supervision and Management: The Strategic Committee of the Board of Directors is responsible for making plans and reviewing targets.
Implementation: We established a group for energy conservation and emission reduction. Its main function is to coordinate, supervise, guide and evaluate the environmental management. Accordingly, an administrative office was set to realize interdepartmental collaboration and ensure the implementation of working plans.
Performance Management: We set up environmental protection goals and indicators every year and link environmental performance with management salaries. Under the Performance Assessment Standards for Persons in Charge of COSCO SHIPPING Energy, the performance of energy conservation, emission reduction, and environmental protection is regarded as a binding indicator for the management to ensure that environmental goals are delivered.
Business Ethics
Planning: The Audit Committee is responsible for formulating the annual work plan.
Supervision and Management: The management coordinates integrity management, improves the management system, performs supervision to ensure the responsibility fulfillment and organizes integrity education.
Implementation: The supervision and audit department is responsible for integrity supervision, develops proposals for addressing integrity risks and follows up the implementation of the proposals.
Implementation: The supervision and audit department is responsible for integrity supervision, develops proposals for addressing integrity risks and follows up the implementation of the proposals.
Institutional Guarantee: We make use of the Supervision Management Regulations, Anti-Commercial Bribery Management Measures, Anti-Commercial Bribery Manual, and other policies to put in place for effective management and restraint.
