ESG Management ESG Management

Corporate Sustainability Management StrategyCorporate Sustainability Management Strategy

In order to realize social care and pursue sustainable development, HFC has set up three major sustainability focuses and twelve action guidelines in the spirit of ESG, and allocates "1% of net profit after tax attributable to the parent company" every year as a development driver for the promotion and implementation of sustainability policies. In accordance with the "International Integrated Reporting Framework" of IIRC, HFC responds to its sustainable strategy from the key capital of sustainable development to shape the corporate sustainable value creation process.In order to realize social care and pursue sustainable development, HFC has set up three major sustainability focuses and twelve action guidelines in the spirit of ESG, and allocates "1% of net profit after tax attributable to the parent company" every year as a development driver for the promotion and implementation of sustainability policies. In accordance with the "International Integrated Reporting Framework" of IIRC, HFC responds to its sustainable strategy from the key capital of sustainable development to shape the corporate sustainable value creation process.

ESG CommitteeESG Committee

In order to promote and implement the corporate social responsibility policy and sustainable development, HFC has established an ESG committee in accordance with Article 27 of the “Corporate Governance Best Practice Principles of Hotai Finance Co., Ltd.” and the “Sustainable Development Best Practice Principles of Hotai Finance Co., Ltd.” The ESG Committee is under the board of directors and consists of five members, with the chairperson of the board of directors serving as the convener, and the members include the president, two vice presidents, and one assistant vice president. Various functional teams have been set up under the committee, including the Environmental Sustainability team, Corporate Governance team, and Social Participation team, to handle the issues of concerns to different stakeholders and promote the planned work with the relevant departments of the Company, so as to carry out the planning, promotion and execution of related business.In order to promote and implement the corporate social responsibility policy and sustainable development, HFC has established an ESG committee in accordance with Article 27 of the “Corporate Governance Best Practice Principles of Hotai Finance Co., Ltd.” and the “Sustainable Development Best Practice Principles of Hotai Finance Co., Ltd.” The ESG Committee is under the board of directors and consists of five members, with the chairperson of the board of directors serving as the convener, and the members include the president, two vice presidents, and one assistant vice president. Various functional teams have been set up under the committee, including the Environmental Sustainability team, Corporate Governance team, and Social Participation team, to handle the issues of concerns to different stakeholders and promote the planned work with the relevant departments of the Company, so as to carry out the planning, promotion and execution of related business.

The committee meets at least twice a year. 2 meetings were held in 2023 to review the progress and achievements of the 2023 plan and to identify the direction of the 2024 plan. The in-person attendance rate of the committee members reached 100%; Moreover, the committee reported to the board of directors on the status of the implementation of 2023 ESG management on December 14, 2023. In addition to the summarizing the results of environmental sustainability, social participation, and corporate governance projects, for climate risk management topics stated in the report, the greenhouse gas inventory and the promotion of solar energy business are also reported as projects simultaneously, which shows how important they are to the realization of net-zero emissions by HFC.The committee meets at least twice a year. 2 meetings were held in 2023 to review the progress and achievements of the 2023 plan and to identify the direction of the 2024 plan. The in-person attendance rate of the committee members reached 100%; Moreover, the committee reported to the board of directors on the status of the implementation of 2023 ESG management on December 14, 2023. In addition to the summarizing the results of environmental sustainability, social participation, and corporate governance projects, for climate risk management topics stated in the report, the greenhouse gas inventory and the promotion of solar energy business are also reported as projects simultaneously, which shows how important they are to the realization of net-zero emissions by HFC.