Building ESG Culture from the Top Down to Drive Fosun’s Long-Term Sustainability
On 14-15 September 2023, the Fosun ESG Global Network Workshop was held in Hong Kong with key ESG (Environmental, Social and Governance) team members, including independent non-executive director and member of ESG Board Committee, members of the Fosun ESG Management Committee, Fosun CSR Global Empowerment Committee, Fosun Carbon Neutrality Committee, Fosun China Hong Kong Operation Committee, as well as ESG core teams from some listed subsidiaries and regional member companies. Experts and scholars from external professional ESG organizations and well-known universities in Hong Kong also participated in the workshop, sharing best ESG practices and exploring outstanding international ESG cases to establish open communication channels among companies within the Group.
David T. Zhang, Independent Non-Executive Director and a member of the ESG Board Committee of Fosun International, stated in his opening remarks, “Fosun is actively exploring ways to undertake more social responsibility. It is also committed to further optimizing corporate governance, mainly focusing on the healthy development of sustainable businesses, extending from the Board of Directors (the ‘Board’) to daily operations. Fosun has set up an ESG Board Committee under the Board to oversee and promote the implementation of ESG strategies at all levels. Fosun regularly holds ESG Global Network workshops both domestically and internationally, which helps establish open communication channels within the Group and encourages knowledge and experience sharing related to sustainability among employees and subsidiaries.”
The Fosun ESG Global Network Workshop – Hong Kong Station is another stop in the Asia-Pacific region, following the ESG workshop held in London, United Kingdom in May 2023. Angel Sze, Fosun Global Partner, Company Secretary and Head of ESG Management Committee of Fosun International, said, “Fosun prioritizes sustainability, fosters an ESG culture from the top down, and regularly holds meetings and workshops to share best ESG practice cases with its subsidiaries, thereby assisting in promoting the development of ESG initiatives within its subsidiaries.”
Developing business for good and staying true to its aspiration of “Contribution to Society”
Fosun has always been adhering to developing business for good and its original aspiration of “Contribution to Society”. As a participant in the United Nations Global Compact (“UN Global Compact”), Fosun fully supports the ten principles of UN Global Compact in the areas including human rights, labor, environment and anti-corruption, relentlessly integrating such principles into Fosun’s ESG strategies and actively engaging its member companies in the implementation of ESG strategies.
To further improve the ESG management system, Fosun has established a top-down and long-term mechanism. The Company has set up an ESG Board Committee under the Board. At the management and decision-making level, Fosun has established an ESG Executive Committee. At the implementation level, the Company has also set up an ESG Management Committee and an ESG Working Group to implement ESG strategies and related actions of the Group.
In 2021, Fosun made a commitment to society - “strive to peak carbon emissions by 2028 and achieve carbon neutrality by 2050”. In April 2023, Fosun issued its first Task Force on Climate-Related Financial Disclosures (TCFD) report, demonstrating its commitment to climate action to the international community.
In order to further fulfill its corporate social responsibility, Fosun established Fosun Foundation in 2012 and continues to advance in the fields of global emergency relief, rural revitalization, health promotion, community building, children and youth welfare, education and culture & art, demonstrating its commitment to public welfare.
Fosun ESG Global Network Workshop - Hong Kong Station: Highlighted ESG Cases
Energy Usage Reduction Initiatives
Yuyuan places great emphasis on energy conservation and emission reduction. Yuyuan has implemented a series of measures including the introduction of shared bicycles in the factory area of Shede Spirits and the use of LED lights at the Yuyuan Garden Lantern Festival. These concurrent measures have significantly reduced energy consumption, accelerating the pace of carbon emission reduction. In recent years, all installations at the Yuyuan Garden Lantern Festival have been made with LED lights. This not only enhances the artistic and aesthetic aspects of the lanterns but also effectively saves energy. By continuously implementing energy-saving and emission-reducing measures, Yuyuan strives to create a green cultural event based on its philosophy.
Mine Reforestation and Water Resource Protection
From its establishment in August 2007 to December 2022, Hainan Mining has voluntarily planted 3.3225 million trees, restored ecological areas covering 3.4619 million square meters, and invested a total of RMB157.6531 million in remediation funds. Over the past four years, Hainan Mining has planted a total of 838,400 trees of various species including Acacia confusa, Bougainvillea, Albizia kalkora, Terminalia mantaly, and Dalbergia odorifera in areas such as the Fengshu Open Pit, the South Mine Backfilling Area, the Zhengmei Mountain Soil Stacking Yard, and the construction site of the Hongqiwei Tailings Dam Expansion Project. Ecological restoration and land reclamation have covered an area of 324,200 square meters, with 41,500 square meters of slope and terrace being restored through spraying.
To protect water resources and enhance the utilization of mine water resources, Hainan Mining has vigorously researched and developed water recycling projects for the beneficiation and mining processes, and established an effective water recycling management mechanism, yielding excellent water-saving benefits. In the beneficiation process, the overflow water from the beneficiation wastewater is completely reused after treating in the in-plant tailings thickener. The beneficiation wastewater is comprehensively reused through in-plant disposal and overflow reuse from the tailings dam, achieving a “dual-cycle” comprehensive reuse. All the mine pit water generated during mining is fully utilized. In the past three years, although the total water consumption by Hainan Mining has increased, the annual consumption of new water has decreased year by year.
Fosun Tourism Group
Sea Turtle Rescue Project
The Lost Chambers Aquarium at Atlantis Sanya under Fosun Tourism Group is dedicated to biodiversity conservation and is one of the first aquatic wildlife rescue units in Hainan Province. With a strong professional team and excellent hardware facilities, it actively participates in wildlife rescue efforts, with significant results in the Sea Turtle Rescue project.
Up to now, Atlantis Sanya has rescued 23 national first-class protected sea turtles and conducted 5 sea turtle release activities, returning 9 rehabilitated sea turtles to the sea. In 2022, a total of 16 sea turtles underwent rehabilitation at the facility, during which 2 release events were organized, releasing 2 green sea turtles and 1 hawksbill sea turtle. Currently, there are 13 sea turtles undergoing rehabilitation. In July 2020, a green sea turtle rescued and treated at the facility was named “Simba” by Mr. Yuri Senko, Ambassador Extraordinary and Plenipotentiary of Belarus to China, on 27 March 2023, and a naming certificate was issued for it.
Together We Build a Malaria-free World
As one of the official members of the global cooperation initiative for “malaria elimination” advocated by the World Health Organization (“WHO”), Fosun Pharma and its charitable partners contribute “Chinese solutions”, so as to jointly build a malaria-free world. As of the end of 2022, Artesun® (artesunate for injection), an innovative drug with proprietary intellectual property rights owned by Fosun Pharma, has treated more than 56 million severe malaria patients worldwide; and the “Seasonal Malaria Chemoprevention Program” has covered 175 million children in African countries with high malaria prevalence. In June 2023, Argesun®, the second-generation artesunate for injection independently developed by Fosun Pharma, became the first artesunate injectable presented with a single solvent system approved by the WHO prequalification (WHO PQ), which will further enhance the accessibility of innovative antimalarial drugs and save more lives.
Bringing New Business to Rural Areas
Peak Re first visited Yongping County in Yunnan Province, China in 2018 as part of the Rural Doctors Program. In order to offer support to the local community in a sustainable way, Peak Re has launched an initiative to buy, package and promote the wonderful teas planted in the region. New sales opportunities would bring much-needed income to help with the villagers’ household expenses and their children’s education.
Leveraging Financial Empowerment · Supporting Local Development Financing
In 2022, Fosun Wealth, as the joint lead manager, assisted CNGR Advanced Material Co., Ltd. in the successful issuance of US$140 million in green bonds. The bond proceeds, in accordance with CNGR’s green financing framework, are used to provide financing and/or refinancing for eligible assets. CNGR is dedicated to developing green and sustainable finance, empowering the green transformation of industries, and contributing to the achievement of carbon peak and carbon neutrality goals.
Leveraging Industry Advantages to Drive Sustainable Investments
Promoting the Establishment of Green Funds
In January 2022, Fosun International Asset Management under Fosun Wealth established Fosun International Carbon Neutrality Equity Fund. The fund comprehensively invests in the field of carbon neutrality, including new energy vehicles, photovoltaics, wind power, energy storage, and green technology companies, with the aim of exploring investment opportunities arising from global carbon reduction and energy transition.