ESG Strategy
| IMPACT |  Innovation- driven |  Mindful Operation |  People and Partner Oriented |  Advanced Governance |  Climate and Planet Positive |  Transparency |
| Definition | Empower the industry with technology innovation address major industry challenges, and drive sustainable business growth. | Adopt a responsible approach to business activities, including investment, supply chain, product and service offering, and digital intelligence application. | Adhere to the people-oriented philosophy in operations, protecting the rights and well- being of employees, partners and the communities where Fosun operates. | Set up a compliant, efficient and robust governance system to build trust in operations. | Implement the green transition, with sustainability initiatives in areas such as climate change response, biodiversity protection, resource utilization and circular economy management. | Build social trust by adhering to transparent and truthful disclosure, assurance, data governance and stakeholder communication in sustainable development. |
| Focus Areas | Research & development and innovation Green products and clean technology Diversified products and services Protection of intellectual property | Customer privacy and data security Customer service and satisfaction Responsible investment Responsible marketing Product quality and safety Responsible procurement | Employee health and safety Employee benefits and welfare Employment and labor standards Employee learning and development Participation in community welfare | Business integrity and supervision Advanced corporate governance Risk and crisis management ESG governance | Biodiversity protection Waste management Waste gas emission management Water resource management Material management | Assurance Disclosure Data governance Stakeholder engagement |
| Goals | Focus on the development of business segments such as Health, Happiness and Wealth, create diversified innovation models, and explore cutting-edge fields such as clean technology, so as to consolidate our position as a global innovation-driven consumer group | Provide high-quality products and services to global family customers to meet their needs; work together with various partners to build partnerships with complementary advantages and mutual benefits; conduct responsible investment and incorporate the concept of corporate social responsibility into investment and financing decisions. | Create a diverse, fair, safe and healthy working environment, and help employees grow through training and incentives; stay true to the original aspiration of "Contribution to Society", promote globalization and create value. | Conduct business with integrity, rigorously review corporate governance issues and potential risks, and continuously improve ESG governance capabilities. | Work with member companies to advance the implementation of ESG strategies, including carbon neutrality, carbon peaking and energy conservation, to actively promote the sustainable development of the Group. | Maintain close and open communication with all stakeholders and proactively disclose information in a transparent, truthful and accurate manner to further empower the Group's sustainable development through digital management. |
| Progress made in 2023 | 1.The Group invested nearly RMB7.4 billion in total to improve technology and innovation capabilities (including scientific research investment expensed and capitalized, but excluding digitalization expenses). In particular, the R&D expenses amounted to approximately RMB4,882.9 million, accounting for approximately 2.46% of revenue. A total of 1,241 authorized invention patents have been acquired. 2. 43 participating and holding companies in the energy and environmental protection sector, of which 2 were A-share Main Board listed companies. The total investment in energy and environmental protection exceeded RMB20 billion, accounting for over 50% of the total investment in primary market in the energy, environment and smart equipment investment segment. | 1. The shot-term, medium-term, and long-term goals of quality management for 2022-2031 continued to be pushed forward, with the shot-term goals having already been achieved. 2. All registered and new suppliers have signed the Fosun Group Supplier Code of Conduct. 3. ESG risk assessments have been conducted on suppliers managed through the digital supply chain platform. 4. The average anti-corruption training hours per person for the Company’s suppliers and contractors was approximately 0.5 hour. | 1. The average training hours per person was 47 hours. 2.Around 27,000 employees were newly hired. 3. Fosun Foundation donated more than RMB1.026 billion. | 1.The integrity inspection work has achieved a coverage rate of 100% for the key core member companies within the annual inspection plan of the Group. 2.The integrity education has been provided to 100% of the Company's employees, with approximately one hour of integrity training per employee. 3.No major ESG crisis or incident occurred. | 1. Under the goal of "striving to peak carbon emissions by 2028 and achieve carbon neutrality by 2050", the carbon neutrality route has been officially established, a Carbon Neutrality Committee has been established, and the second Climate Information Disclosures Repot was in preparation. 2. The shot-term, medium-term, and long-term goals of EHSQ management for 2022-2031 continued to be pushed forward, with the shot-term goals having already been achieved. | 1. Since 2021, every ESG repot we published has been subject to assurance to ensure the transparency and validity of the information. 2. We have identified ten core stakeholder groups that have a close relationship with the Group. Through regular and diversified communication mechanisms, we fully respond to the expectations and demands of our core stakeholders. We also maintain a transparent dialogue with them on the risks and opportunities for sustainable development. |
