Fosun International Limited, together with its subsidiaries, issued the Environmental, Social and Governance (ESG) Report 2021 (the “Report”).
The Report focuses on corporate governance and business ethics, customer privacy and data security under global layout and lean operation, product quality and safety, climate change mitigation and energy management, safety and environmental protection, responsible investment, sustainable supply chain management, employee health and safety, employee benefits and welfare, customer service and satisfaction, social welfare, etc. The Report comprehensively demonstrates Fosun International’s ESG strategies, practices and achievements in 2021 to stakeholders including shareholders, customers and consumers, employees, governments, partners and the general public.
The Report complies with the core option of Global Reporting Initiative (GRI) Sustainability Reporting Standards (GRI Standards) and the Environmental, Social and Governance Reporting Guide in Appendix 27 to the Listing Rules of Hong Kong Stock Exchange. The Report was also audited and approved by SGS, an independent third-party and internationally recognized certification body.
Became a member company of international and domestic organizations such as the UNGC to actively promote the sustainable development of China and the world
Fosun’s unique globalization capability allows the Group to have a global mindset while stay rooted in China. The Group is committed to working with various international initiatives to promote sustainable development. In August 2014, the Group joined the United Nations Global Compact (UNGC) and is devoted to the global commitment to sustainable development, promoting the achievement of the United Nations (UN) Sustainable Development Goals (SDGs) through participating in related activities globally and locally. As a participant in the UNGC, Fosun supports the ten principles of UNGC in the areas of human rights, labor, environment and anti-corruption, relentlessly promoting their close integration with Fosun’s ESG strategies and actively engaging its member companies in the implementation of ESG strategies.
While actively promoting sustainable development around the world, the Group joined the Chinese ESG Leaders Association in 2020, became a member of the China Business Council for Sustainable Development (CBCSD), and acted actively in fostering conservation and cooperation in the field of sustainable development among enterprises, governments and social organizations. While sharing Fosun’s concepts, information and experience with respect to sustainable development, Fosun actively learns from the good practices of other companies to provide better assistance for companies to cope with the challenges of global climate change, environmental protection, health, safety, corporate social responsibility, etc., promoting and striving to achieve national sustainable development through joint efforts.
Top-down and long-term mechanism for ESG improvement to link ESG performance with the performance appraisal of the Board
This year, Fosun enters into the 30 years of establishment. Since its establishment, Fosun has defined its corporate operating principles and cultural values of “Self-improvement, Teamwork, Performance, and Contribution to Society”. It has been closely linking the development and achievement of individuals and enterprise with the improvement of social welfare all along. Fosun has been upholding the original aspiration of “Contribution to Society”, improving the Group’s ESG performance in every aspect of its operations and fulfilling the mission of “creating happier lives for families worldwide”.
In order to ensure the smooth and continuous progress of ESG work, Fosun has established a top-down and long-term mechanism for ESG improvement. Fosun includes ESG management performance as an evaluation factor in the Executive Directors’ performance assessment and remuneration assessment. With this mechanism, the Group and its member companies can deeply incorporate ESG into the operations and management progressively.
To further improve the ESG management system, Fosun has set up an ESG Board Committee under the Board of Directors (the “Board”) to assist the Board in guiding and overseeing the Group’s ESG development and implementation; at the management and decision level, Fosun has established an ESG Executive Committee under the management to provide decision support for the implementation of ESG strategies. At the implementation level, the Group has also set up an ESG Management Committee and an ESG Working Group to implement ESG strategies and related actions and ensure the establishment of appropriate and effective ESG risk management and internal control system.
Improved ESG rating for three consecutive years and made impressive achievements, adhering to its original aspiration of “Contribution to Society”
As at the end of the Reporting Period, Fosun International was the only conglomerate in Greater China with an MSCI ESG rating of AA. It was also selected as a constituent of the MSCI CHINA ESG LEADERS 10-40 Index, and its Hang Seng Sustainability Rating was A, and was selected as a constituent of the Hang Seng Corporate Sustainability Benchmark Index (HSSUSB) and Hang Seng ESG 50 Index; FTSE Russell ESG Rating and S&P CSA ESG Scores were also significantly raised, with all ratings higher than the industry average. Various rating agencies have given Fosun International excellent ratings and scores, which demonstrates the market’s recognition of Fosun International’s outstanding performance in sustainable development, including ESG, as well as a praise for Fosun’s adherence to its original aspirations.
Guo Guangchang, Chairman of Fosun International said, “After 30 years of development, Fosun has grown into one of the few domestic enterprises that are equipped with global operation and investment capabilities, as well as accumulated profound technology and innovation capabilities. Over the years, Fosun has endured different stages of development, but we have always adhered to the values of ‘Self-improvement, Teamwork, Performance, and Contribution to Society’. Through the continuous upgrade in strategic evolution, we remain committed to our mission of serving one billion families worldwide and creating happier lives for families worldwide. Fosun has developed business for good with a customer-oriented focus. We have always believed that people’s pursuit of happier and brighter life remains unchanged regardless of the external situation. The significance of the existence of an enterprise is to bring more warmth and love to the society.”
E (Environmental): Contribute to carbon peak and carbon neutrality, act as a responsible global citizen
2021 marks the first year of Fosun’s carbon neutrality. Centered around the national “carbon neutrality” strategy, the Group has set a carbon reduction target — “to achieve carbon emissions peak by 2028 and carbon neutrality by 2050” and has formulated effective strategies for climate change mitigation and adaptation to align with 1.5°C temperature control target set in the Paris Agreement.
Established Carbon Neutrality Committee and Working Group to actively advance Fosun’s carbon peak and carbon neutrality targets
To further advance Fosun’s carbon peak and carbon neutrality targets, Fosun has established a Carbon Neutrality Committee and a Carbon Neutrality Working Group. The Carbon Neutrality Committee, composed of the directors of the Company and directors of its member companies, is responsible for supervising and promoting the overall carbon neutrality strategy and regulating and monitoring climate-related risks and opportunities. During the Reporting Period, Fosun added the indicator of “carbon neutralization management” to the ESG management performance appraisal mechanism of the Group’s CEO and Business Groups’ leaders, with the aim of further assessing the achievement rate of carbon neutral projects of their managing operating entities, promoting further implementation and enforcement of carbon neutral management across the Group.
The Financial Stability Board (FSB) established the Task Force on Climate-related Financial Disclosures (TCFD) in 2015 to assist companies in disclosing climate-related financial risks voluntarily. The Group is striving to build long-term climate adaptive capacity and drive the transformation towards a low-carbon economy through gradual implementation of the TCFD recommendations. During the Reporting Period, based on the TCFD recommendations, Fosun strengthened climate-related risk assessment to understand climate-related risks and opportunities in its business, including physical risks and transition risks.
Actively promote energy conservation and carbon reduction to contribute to the sustainable development of the Earth
The Group actively monitors and records greenhouse gas (GHG) emissions of each member company for continuous improvement. Total GHG emissions in 2021 was approximately 21.965 million tonnes, decreased by 1.02% from 2020; GHG emissions intensity in 2021 was 103.9 tonnes/RMB million of revenue, decreased by 20.65% from 2020; total energy consumption intensity in 2021 was 274.3 MWh/RMB million of revenue, decreased by 17.52% from 2020.
The Group and its member companies actively promote energy conservation and carbon reduction and are determined to become carbon reduction pioneers in their industries. The Group’s Atlantis Sanya was awarded the carbon neutrality certificate, which was the first carbon neutrality certificate obtained by tourism enterprises in Hainan Province; the Bund Financial Center (BFC), the Group’s base in Shanghai and a landmark in Shanghai, was awarded the Leadership in Energy and Environmental Design (LEED) Platinum certification, which is hailed as the “Oscar Award” in the green building industry, with a score of 97 points to set a new world record. Nanjing Iron & Steel’s new intelligent rail electric locomotive “Nanjing Steel” was officially put into operation in October 2020. This is the first new intelligent rail electric locomotive in China, promoting the dispatching locomotive of large industrial and mining enterprises into a new era of clean energy.
S (Social): Develop business for good, and actively give back to the society
As a global enterprise rooted in China, while actively creating business value, Fosun attaches great importance to corporate social responsibility and actively brings contribution to the society through public welfare programs such as supporting the combat against the pandemic, assisting in the fight against malaria in Africa, running the Rural Doctors Program, fostering education, culture and entrepreneurship.
Provide anti-pandemic efforts around the clock to demonstrate its commitment to corporate social responsibility
Since the COVID-19 outbreak in early 2020, Fosun has immediately initiated the global medical supplies deployment plan to make continuous contributions to China’s and overseas fight against the pandemic. By the end of December 2021, Fosun Foundation had made a total of 125 donations for global humanitarian support against the COVID-19 pandemic. It provided more than 3.19 million medical protection materials, such as face masks, protective suits, oxygen concentrators and nucleic acid detecting reagents, to multiple worst-hit countries as well as domestic regions including India, Indonesia, Nepal, Cambodia; Jilin, Zhengzhou, Nanjing, Wuhan and Tibet, etc.
In the face of the severe fifth wave of the epidemic in Hong Kong this year, Fosun Foundation immediately announced the donation of HK$10 million anti-epidemic materials to Hong Kong. Since late February, a total of approximately 1.15 million pieces of materials have been delivered to non-profit organizations and grassroots communities in Hong Kong in three batches for high-risk groups such as chronically ill patients, the elderly, and children, as well as frontline anti-epidemic personnel.
In March, Shanghai is also at a critical moment for epidemic prevention and control. Fosun quickly launched the “Warming Spring Anti-epidemic Support Action”, set up a Fosun volunteer anti-epidemic team in Shanghai, donated anti-epidemic materials to frontline anti-epidemic personnel and volunteers, etc. At the same time, Fosun Foundation continued to respond to the donation requests from various parties, and actively donated anti-epidemic materials to hospitals, mobile cabin hospitals, colleges and universities, communities, etc., fully supporting anti-epidemic efforts in Shanghai. As of 26 April, a total of approximately 3.7 million pieces of anti-epidemic materials and daily necessities have been donated to the parties in need. In response to the shortage of supplies and urgent medical needs among staff during the epidemic, Fosun’s employee emergency care project “Fosun Warmth” continued to provide timely assistance to employees in distress. As of 26 April, “Fosun Warmth” has addressed more than 260 emergency needs of employees. The Company will continue to ensure the smooth development of various emergency care initiatives through the “Fosun Warmth” project and provide systematic care, psychological counselling and professional guidance for employees and their families.
In addition to humanitarian donations, Fosun is also committed to the research and development of vaccines and drugs. Fosun joined hands with Germany’s BioNTech to develop the mRNA COVID-19 vaccine (COMIRNATY®). During the Reporting Period, approximately 22 million doses of COMIRNATY® were sold in Hong Kong SAR, Macao SAR and Taiwan region, playing a positive role in the prevention and control of the epidemic in the regions.
Assist in the fight against Malaria in Africa to build a Malaria-free world
As an official member of the Roll Back Malaria, a global cooperative initiative advocated by the World Health Organization (WHO), Fosun Pharma is committed to raising awareness of malaria prevention among African people, reducing the morbidity and ultimately achieving the target of a “malaria-free world”.
Fosun Pharma’s antimalarial product portfolio covers malaria prevention, and treatments of complicated and severe malaria. As of January 2022, Fosun Pharma has 30 antimalarial products prequalified by WHO (WHO-PQ), including 26 finished dosage forms and 4 APIs (active pharmaceutical ingredients), making Fosun Pharma the leading antimalarial drug manufacturer with the most certifications.
As the first Chinese brand pharmaceutical product well recognized in Africa, Artesun® (artesunate for injection), self-developed and manufactured by Fosun Pharma, has been used to treat over 48 million severe malaria patients worldwide by the end of 2021, which turned to be a symbol of China’s self-developed innovative medicines to the world.
Fosun Pharma has been constantly innovating, with an aim to provide more innovative anti-malaria solutions, assisting in “Building A Malaria-free World”. At present, Fosun Pharma’s SPAQ-CO®Disp, which indicated for the prevention of malaria in children was pre-qualified by WHO, and around 175 million children in high malaria transmission African countries had benefited from the “Seasonal Malaria Chemoprevention (SMC) Program”, for which SPAQ-CO®Disp is used as the core drug. SMC with SPAQ-CO®Disp effectively reduced the morbidity of malaria in children under five years old in Africa.
World Malaria Day is celebrated on 25 April each year, which aims to promote global malaria prevention and control. This year, World Malaria Day is marked under the theme “Harness innovation to reduce the malaria disease burden and save lives”. On 25 April, during World Malaria Day, Fosun Pharma and Fosun Foundation responded positively and launched series of public welfare activities around the world calling on people to join hands to fight against malaria, including the collaboration with Fosun Hive to put up posters on the façade of its landmark buildings at home and abroad, drawing global attention to the fight against malaria in Africa.
Promote rural revitalization, and practice common prosperity
Rural Doctors is one of the key initiatives to promote common prosperity in the society. At the end of 2017, under the guidance of the National Health Commission, Fosun initiated the Rural Doctors Program. Fosun has been actively supporting rural revitalization and promoting common prosperity in rural areas. By the end of 2021, the Rural Doctors Program had covered 73 counties across the country, assisted 12,545 administrative village clinics, supported 23,956 rural doctors and benefited 3 million grassroots families.
This year marks the first year of rural revitalization. Through the Rural Doctors Program, Fosun will continue to help rural doctors to better perform their duties, mitigate the problem of villagers returning to poverty due to illness, assist in rural revitalization and promote common prosperity in rural areas. In addition, Fosun will help the underprivileged through education, culture, employment and other public welfare programs and contribute to narrow the income gap between regions, urban and rural areas, endeavoring to achieve common prosperity in the society.
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G (Governance): Sound corporate governance structure and global partners system to lead sustainable development
The Group is committed to safeguarding the interests of shareholders through high-standard corporate governance and ethical business operations and to enhance its corporate value and accountability. Therefore, Fosun has established a sound corporate governance structure, under which the Board is responsible for the leadership and oversees the businesses, strategic decisions and performance of the Group. The Board has established the Audit Committee, the Remuneration Committee, the Nomination Committee and the ESG Committee to oversee particular aspects of the Company’s affairs. Fosun recognizes and embraces the benefit of having a diverse governance and believes that increasing diversity in governance will help Fosun maintain a competitive advantage and achieve long-term sustainable growth. The Group has formulated the Board Diversity Policy to ensure members of the Board of Directors possess the appropriate skills, experience and diversity of viewpoints and perspectives required for the Company’s business.
In order to promote the healthy development of the Group and enhance its ability to resist risks, the Group has established risk management and internal monitoring systems targeted for risk management and control. The Group has formulated an enterprise risk management plan, implementing proactive ex-ante, in-process and afterwards risk management, and building a systematic tiered risk management system that empowers and adds value to the Group, providing an important guarantee for the Group to achieve its strategic and business objectives.
It is also critical to have a cultural base for ESG developments to better execute ESG work. Fosun regards its employees as its most valuable assets. Fosun has been introducing and integrating external talents into the internal training, so as to gather global talents with entrepreneurial spirit. Fosun’s partner system is a market-based, benefit-sharing entrepreneurial mechanism. At present, it has more than 140 global partners and 20 overseas partners, covering China, Japan, India, Germany, France, the United Kingdom, Portugal, the United States, Israel, etc. The Group also has more than 800 industry and functional line partners. This mechanism has enabled Fosun to cultivate talents with consistent thinking on the cultural level and a sense of identity as a member of Fosun. They function as the core leadership of the Company. This sense of identity can help Fosun implement the ESG concepts more efficiently.
Established for 30 years, continue to uphold its original aspirations, and create happier lives
Fosun, which is about to turn 30 this year, will continue to uphold its original aspirations of developing its business for good and “Contribution to Society”, actively shoulder more social responsibilities, implement ESG strategies, constantly create value and give back to the society, helping to promote high-quality development of the Group and the society. With the global trend of promoting carbon neutrality, carbon emissions reduction and the sustainable development of the earth, Fosun will continue to actively cooperate with its member companies to promote the implementation of ESG strategies, especially in the areas of carbon emissions peak, carbon neutrality, energy conservation and consumption reduction, and actively promote the sustainable development of the Group.
For more information on Fosun’s ESG, please refer to Fosun International’s ESG Report 2021 posted on:the Hong Kong Stock Exchange’s website (http://www.hkexnews.hk)or the Company’s sustainability webpage (https://en.fosun.com/development/)
Source: Fosun International Limited