Editor’s note:
This year is the first year of the "14th Five-Year Plan". In order to promote listed companies to establish a new stage of development, implement new development concepts, build a new development pattern, and do a good job in ESG related work, China Association of Listed Companies organized the collection of ESG good practice cases of listed companies, compiled and formed the "ESG Practice Cases of Listed Companies", which was officially released on August 27.
At the same time, the China Association of Listed Companies and the " Finance" magazine set up an in-depth report on "ESG Listed Companies in Action", aiming to promote outstanding typical listed companies ESG practical experience, in-depth research and exploration of Chinese listing The company's ESG localization road.
Caijing magazine has been paying attention to and reporting on the localization of ESG concepts in China's capital market, especially how listed companies can improve ESG performance and achieve high-quality development. It is also an important measure for China's capital market reform. Song Zhiping, chairman of the China Association of Listed Companies, said at the "Finance" Sustainability Summit Forum that the core of the quality of listed companies is governance, performance and responsibility, and ESG is an important tool for improving the quality of listed companies.
1. Company profile
BYD Co., Ltd. (hereinafter referred to as “BYD”)Headquartered in Shenzhen, Guangdong Province. The company's business spans the four major industries of automobiles, rail transit, new energy and electronics, and is listed in Hong Kong and Shenzhen.
Automotive: BYD adheres to independent innovation and has mastered the core technologies of the electric vehicle-related industry chain including batteries, motors, electronic controls and chips. BYD has always been committed to promoting the development of electrification in the automotive field. As early as 2008, it launched the world's first mass-produced plug-in dual-mode electric vehicle. In 2010, it proposed the world's first public transportation electrification solution, which was later upgraded to a national strategy. Global consensus, continue to lead and promote industry changes. By the end of 2020, BYD's electric vehicles have entered more than 300 cities in more than 50 countries and regions around the world. It is the first Chinese car brand to enter developed markets such as Europe, the United States, and Japan.
Rail transit: BYD takes advantage of integrated innovation and extends the electric vehicle industry chain to the rail transit field, launching a new straddle monorail " cloud rail" and rubber-wheeled trams" Yunba". "Cloud Rail" and "Yunba" have completely independent intellectual property rights, master the core technology of the entire industry chain, fill the gap in my country's small and medium-sized rail transit technology and industry, and contribute "Chinese wisdom" to the governance of traffic congestion in global cities.
New energy field: BYD owns new energy products such as batteries, solar energy, and energy storage, providing overall solutions for energy acquisition, storage, and application. Products cover consumer 3C batteries, power batteries and energy storage batteries, and have a complete industrial chain. BYD is the world’s leading power battery manufacturer,Solar energy and energy storage solutions have been exported to the United States, Germany, Japan, Switzerland, Canada, Australia, South Africa and many other countries and regions.
Electronics: BYD Electronics (International) Co., Ltd. was independently listed in Hong Kong in 2007 and is the world’s leading provider of smart product solutions. Its business covers smart phones and laptops, new smart products, and automobiles Four major areas such as intelligent systems and medical health. BYD Electronics is the only company in the world that can provide a full range of precision metal, glass, ceramic, plastic and other structural parts and complete machine design and manufacturing solutions on a large scale. It continues to provide R&D, design, manufacturing, and supply chain for top customers around the world Comprehensive services such as management.
Over the past 26 years, BYD has won the "Zayed Future Energy Award", "UN Energy Special Award" and "Fortune" magazine through its strong market layout and strategic measures to firmly promote global sustainable development. "The company that changed the world" and other series of praise. As a pioneering company for new energy solutions, BYD adheres to the development concept of "technology is king, innovation is the foundation" , insists on developing itself in the process of solving social problems, and using technological innovation to satisfy people's better life Yearning.
2. ESG practice and experience of listed companies
1. ESG investment market situation in the past 40 years _strong5span _span4 pGlobal climate change has led to a significant increase in the frequency and intensity of extreme weather, which has led to major challenges to the stability of the financial system and global sustainable development. According to the "Global Risk Report" released by World Economic Forum every year, the top three long-term risks facing the world have all been related to climate and environment for three consecutive years. The "2021 Global Risk Report" points out the global risks in the next ten years. The three relatively higher risks are extreme weather events, failure of measures to address climate change, and man-made environmental damage.
In response to climate change, the international community has actively carried out a "zero carbon" action, and my country has also committed to the goal of " carbon peak in 2030 and 2060 carbon neutral". In this context, the accelerated promotion of global ESG investment benefits is aimed at promoting the realization of global sustainable development goals by changing the flow of capital. According to statistics from the Organization for Responsible Investment Principles (UNPRI) supported by the United Nations, as of May 11, 2021, nearly 3,969 institutions around the world have signed the UNPRI principles, including 2915 investment management institutions and 611 asset owners. The scale exceeds 100 trillion U.S. dollars. Chinese institutional investors are affected by ESG investment trends, and more than 40 institutions have chosen to participate in UNPRI principles. ESG investment institutions have become important participants in the market, and the trend of ESG investment has gradually entered the public’s field of vision. Characteristics and issues of concern
Therefore, in response to the needs of the capital market, the ESG index is developing well: , Hang Seng, MSCI , S&P, CDP and other rating agencies have actively participated in the preparation of the ESG index.The results of index ratings have been widely used and integrated into investment decisions by investment institutions: many passive investment funds choose to track . Tracking investment, because the companies that can enter this type of index are mostly companies with excellent market performance and ESG indicators, they can often get investment returns that exceed the same risk level (alpha) fund.
Driven by " carbon neutrality " and market demand, international capital markets are increasingly concerned about the ESG performance of listed companies, and more and more investors are incorporating corporate ESG performance into their systematic investment decisions.
2. Corporate ESG management structure
To actively respond to China’s “carbon peak in 2030, carbon neutrality in 2060”, promotes response to China’s “carbon peak in 2030 and carbon neutrality in 2060” . 》In full and effective implementation, BYD strives to be a pioneer in sustainable development, initiates corporate carbon neutral planning research, explores carbon footprint standards for the new energy automobile industry, advocates green and low-carbon production and lifestyle, organizes social welfare and environmental protection activities, and promotes Production, green operation and other aspects have strengthened carbon emission reduction actions. In 2020, more than 450 million yuan will be invested in environmental protection related investment, technological transformation and equipment upgrades. At the same time, we will accelerate the green and low-carbon development of the transportation industry and manufacturing industry through green technologies, products and solutions, and continue to contribute to the protection of the common home of mankind and the realization of sustainable development of mankind.
BYD under the ESG disclosure guidelines of Hong Kong Stock Exchange in 2008,With the approval of the company, the " CSR (Corporate Social Responsibility) Management Committee" was established. The "Decision on the Establishment of the CSR Management Committee" clarified the organizational structure of the "modular + business department" system under the leadership of the CSR Management Committee, and promoted the group's ESG development through a stable, efficient, and clear work organization.
Since then, in order to better promote the effective operation of the company's social responsibility management system, continuously improve the company's ability and level of fulfilling social responsibility, and realize the common development of the company and stakeholders, the company will focus on CSR management in 2021 The organizational structure of the committee has been enriched and optimized: the company’s chairman is the director of the CSR management committee, and the CEO and general managers of each business group are members of the committee, allowing the company’s management to participate in ESG governance more deeply. At the same time, in order to better meet the needs of the company’s ESG stakeholders, under the leadership of the ESG working group, the company has established corresponding business groups to formulate and perform the annual ESG work of each unit in a more detailed, three-dimensional and complete manner. Plan and implement the plan.
3. The company’s ESG workflow
In the work process, the company actively considers compliance requirements and the needs of stakeholders to plan and disclose the work of ESG. Efficient advancement. The ESG working group will track changes in regulatory and compliance requirements, respond and adjust in a timely manner according to the latest requirements, and ensure that the members of the working group have a complete understanding of ESG-related information. At the same time, the ESG working group will conduct interviews and surveys to collect requirements. The survey objects include: employees, shareholders, customers, suppliers, etc. In the end, the ESG working group continued to improve this year’s disclosure rules and formulate collection indicators based on the opinions and suggestions of stakeholders.So as to determine the topics of the ESG report. According to each topic, the ESG working group collects data from relevant departments and conducts a unified compilation. The report is confirmed by the board of directors and announced to the public.
4. The company's ESG case sharing
In 2020, the new crown of is facing an urgent epidemic and the domestic demand for face masks is extremely difficult. As a representative of China’s manufacturing industry, BYD actively assumes its social responsibilities. Relying on the company’s strong R&D and manufacturing capabilities, it uses all forces to cross-border the production of masks, and completes the drawings in 3 days and the mask machine in 7 days. A great feat of producing products in 10 days. While making every effort to ensure the supply of domestic epidemic prevention materials, BYD actively assists the global fight against the epidemic and fulfills its corporate social responsibility. As of the end of 2020, the epidemic prevention materials produced by BYD have been shipped to more than 80 countries and regions around the world, and have won wide acclaim from home and abroad.
5. The company’s long-term ESG planning
Since 2010, the company has proactively released social responsibility reports and disclosed corporate social responsibility performance reports for ten years, but has continuously disclosed CSR reports for ten years. With the changes in regulatory requirements and the needs of stakeholders, the company's ESG report still has a lot of room for improvement. In the future, will deepen reforms through the four dimensions of ESG governance, information management, information disclosure and capital markets.
In terms of ESG governance,Starting from the current governance system, the company forms an ESG governance structure by sorting out process nodes and optimizing work efficiency. At the same time, through the adjustment of the organizational structure, the company's management can be deeply involved in and supervise the ESG work process, and continue to deepen the group-level ESG governance from top to bottom. In terms of information management, the company will actively collect the concerns and needs of ESG stakeholders, clarify the scope of reporting, optimize ESG information management, unify data standards, and strengthen the transparency of company management. Improve the company's ESG information data quality through multi-party data verification and accuracy evaluation. In terms of information disclosure, the company will strictly follow the disclosure guidelines of the Stock Exchange, carry out indicator disclosure and improve subsequent risk identification requirements, and consolidate and optimize the disclosure of information to meet the diversified needs of different stakeholders. In the capital market, the company will actively carry out benchmarking gap analysis of outstanding companies in the same industry, based on the analysis results, improve the issues with large gaps, continue to pay attention to indexes and ratings, and strive to reach the international leading level.
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