The most authoritative corporate governance magazine in the Asia Pacific region, Corporate Governance Asia, has recently presented the 14th Asian Excellence Award. Chen Qiyu and Xu Xiaoliang, Executive Directors and Co-CEOs of Fosun International, were awarded Asia’s Best CEO by the magazine.

Corporate Governance Asia pointed out that, in 2023, despite the unfavorable global economic conditions influenced by geopolitical factors, Fosun maintained its strategic focus on core businesses, achieved steady development, improved the operational capabilities of its advantageous industries, and delivered solid results. Amid the complex external business environment, Mr. Chen Qiyu and Mr. Xu Xiaoliang, as the CEOs of a global large-scale private enterprise, have not only led the Group to grow its business operations, but also strengthened the management of sustainable development, proactively fulfilled corporate social responsibility, improved the Group’s Environmental, Social, and Governance (ESG) performance, and leveraged the resources and advantages of Fosun’s global industrial ecosystem to continuously create a better world. 

Corporate Governance Asia has conducted an interview with Chen Qiyu and Xu Xiaoliang and the article was recently published with the headline of “Advancing Sustainable Development to Create a Better World”. The article pointed out that Fosun has been relentlessly promoting global ESG work, continuously bolstering its ESG framework, enhancing climate response capabilities, accelerating green development, and actively fulfilling corporate social responsibility. Fosun’s outstanding ESG performance has received widespread recognition in the market. In the future, Fosun will continue to uphold its original aspiration of developing business for good and “Contribution to Society”, consolidate the ESG concept, continue to create value and give back to the society. The full text of the article is as follows:

 

Advancing Sustainable Development to Create a Better World

In an era marked by the urgent need to address climate change and promote sustainability, Fosun, a global innovation-driven consumer group, stands at the forefront of ESG management and green governance.

Chen Qiyu, Executive Director and Co-CEO of Fosun International, said, “While focusing on business operations, Fosun continues to devote its efforts in ESG. Leveraging its global industry operations and its deep talent pool, Fosun utilizes the most appropriate resources to deeply cultivate key regions and foster mutual empowerment within the ecosystem, so as to create a safer and healthier life for the public. Fosun has established a top-down, long-term ESG improvement mechanism and integrated ESG management performance into the performance evaluation system for executive directors, ensuring the full implementation of ESG strategies and actions.”

With a steadfast commitment to sustainability, Fosun has consistently bolstered its ESG framework. To safeguard shareholders’ interests, enhance corporate value, and practice corporate responsibility, Fosun has established a sound ESG management system, including an ESG Board Committee and an ESG Executive Committee, etc. ensuring the full implementation of ESG strategies and related actions across the Group.

Promoting Green Environment

With climate change being one of the most severe long-term risks, Fosun recognizes the importance of global cooperation to tackle this challenge. Dovetailing with national strategies, Fosun has implemented “Dual Carbon” goals, participated in philanthropic initiatives, protected the rights and interests of employees to promote sustainable management and value creation. Leveraging the resources and advantages of its global industrial ecosystem, Fosun has invested vigorous efforts to address climate change and explore solutions, striving to improve climate performance and build climate resilience.

with a score of 97 points to set a new world record

All installations at the Yuyuan Garden Lantern Festival have been made with LED lights,

not only enhance the artistic and aesthetic aspects of the lanterns but also effectively save energy

In 2021, Fosun made a commitment to society – “to strive for peak carbon emissions by 2028 and achieve carbon neutrality by 2050”. To fulfil this commitment, Fosun has been actively enhancing its climate governance, formulating effective strategies for climate change mitigation and adaptation, and strengthening disclosure of climate-related data to align with the 1.5°C temperature control target set in the Paris Agreement. In order to further push forward its “2050 Carbon Neutrality Goal”, Fosun established a Carbon Neutrality Committee and a Carbon Neutrality Working Group, promoting carbon neutrality management throughout the Group and its member companies.

Fosun has issued two climate information disclosures reports since 2023,

demonstrating its commitment of climate action

Recognizing the importance of transparency and accountability in its sustainability journey, Fosun has issued two climate information disclosures reports since 2023, demonstrating its commitment of climate action. Additionally, Fosun successfully converted a syndicated loan into a sustainability-linked loan, marking its first green syndicated loan and reflecting its commitment to promoting green financing.

Developing Business for Good

2024 marks the 10th anniversary of Fosun International’s joining the United Nations Global Compact (“UN Global Compact”). Over the past decade, Fosun has integrated the ten principles of the UN Global Compact on human rights, labor, environment and anti-corruption into its corporate strategy and operations to ensure responsible business practices. The Group has also actively engaged its member companies in the implementation of ESG strategies.

Xu Xiaoliang, Executive Director and Co-CEO of Fosun International, said, “Our objective is not only to create commercial value but also more social value, with a view to pursuing the common good through business. With a global perspective, Fosun consistently measures its development against global standards, among which ESG is a crucial criterion. Adhering to the ten principles of UN Global Compact, we conduct the business responsibly around the world to foster the sustainable development goals. ”

Since its establishment, Fosun has consistently adhered to the values of “Self-improvement, Teamwork, Performance and Contribution to Society”. As of the end of 2023, the Rural Doctors Program has covered 78 counties in 16 provinces, municipalities, and autonomous regions in China, supporting 25,000 rural doctors and benefiting 3 million grassroots families. Moreover, Fosun Pharma independently developed artesunate for injection, the preferred treatment of severe malaria recommended by the World Health Organization, has been used to treat more than 68 million patients with severe malaria worldwide, most of whom were African children under five years old.

Cultivating ESG Culture

With an aim to foster internal communication and knowledge sharing, Fosun has established internal open communication channels for employees and subsidiaries to share their knowledge and experiences in respect of sustainable development. In addition, the Group’s ESG Management Committee and ESG Working Group often conduct workshops to share the best ESG practices with its subsidiaries, thereby promoting the development of ESG projects in the subsidiaries. Fosun creates an ESG culture that encourages all employees to share and participate in ESG activities. It has developed a global network of ESG ambassadors to bring together passionate colleagues from different countries and industries, pooling their wisdom and efforts in ESG practice.

Conduct workshops regularly to share the best ESG practices with its subsidiaries

Embracing the Best ESG Practices

In recent years, global investors and stakeholders have attached increasing importance to the ESG performance of enterprises. Fosun has achieved remarkable progress in ESG, maintaining an MSCI ESG rating of AA and upgrading its HSI ESG rating to AA-. It was selected as a constituent stock of the Hang Seng Corporate Sustainability Index and FTSE4Good Index Series. In addition, it was included in S&P Global's Sustainability Yearbook 2024 and recognized as an “Industry Mover”.

Chen Qiyu elaborated, “Over the years, we communicate transparently and efficiently with various stakeholders and rating agencies. Our relentless efforts in the ESG domain have garnered much external recognition. Fosun will continuously enhance its ESG management standards by embracing the best ESG practices both domestically and internationally. In the future, Fosun will maintain its strategic focus, leverage its global business presence and its capabilities for globalized business operation, with a view to creating happier lives for families worldwide.”

Xu Xiaoliang added, “Looking ahead, Fosun will remain committed to actively cooperating with its member companies to promote the implementation of ESG strategies, especially in the areas of carbon emissions peak, carbon neutrality, energy conservation and energy consumption reduction. Fosun will also remain steadfast in its commitment to ‘Contribution to Society’, embrace greater social responsibility, and actively contribute to the improvement of China and the world’s business environments and natural environments, aiming to help more families enjoy a healthy, happy, and wealthy life.”