2019 is a difficult year for CIMC since the global economic recovery in 2017, during which the growth of global economic including major economies slowed down, Sino-US trade friction continued, and the downward pressure on the Chinese economy mounted. These factors have given rise to a certain degree of impact and challenges to CIMC’s global businesses. Nevertheless, CIMC Group still followed the idea of sustainable development and the corporate spirit of “pursuit of self-improvement and excellence”, continuously improving its performance in various indicators, such as emissions, energy saving and environmental protection, as well as the corporate governance structure, so as to consolidate and enhance its leading position within the industry, and create new value for all stakeholders.
In the past year, CIMC Group set up sustainable development management goals. By focusing on the core issues of common interest to all stakeholders, including “deepening responsibility governance”, “driving global logistics”, “responding to climate change”, and “extending care”, it brought together the strength of all employees and relevant parties to actively assume social responsibilities, hoping to achieve the harmonious and sustainable development of the economy, environment, and society. In 2019, CIMC Group was successfully incorporated into the Hang Seng A-share Sustainability Benchmark Index, has maintained a good rating of the MSCI ESG Index, and won a number of external awards for its social responsibility work, demonstrating the recognition of the Group from the capital market and society. We also attached great importance to stakeholder communication by holding ESG news conferences and ESG salons, cooperating with external professional institutions to conduct stakeholder surveys, listening to relevant parties’ demands, and establishing normalized communication channels. In addition, we also played an active role in industry association activities, making “CIMC Voice” heard at various summits on social responsibility.
We can never stop pursuing sustainable development once staring it. “Creating sustainable value for society” is the original intention and ultimate objective of CIMC people. Keeping this in mind, CIMC Group will continue to take the lead in the industry to unswervingly advance its sustainable development strategy and pursue high-quality development. In terms of business development strategy, in response to the requirements of the Sustainable Development Goals of United Nations, such as “industry, innovation and infrastructure”, “responsible consumption and production”, and “climate action”, CIMC has exerted lots of efforts in cultivating smart logistics business in order to provide global customers with more efficient, more low energy consuming, more environmental-friendly, and more intelligent logistics equipment and service solutions, and in developing the natural gas storage, transportation and processing equipment and EPC engineering, in order to provide customers around the world with more extensive use of clean energy-natural gas and continuously optimized products and services. In the manufacturing process, according to the requirements of “responsible consumption and production” and “climate action”, CIMC has made the construction of green factories and green supply chains the goal of the Group’s subsidiaries in their work and encouraged them to continue energy conservation and emission reduction through technological progress and lean improvement. In terms of corporate governance, as a company listed on the Hong Kong and Shenzhen Stock Exchanges, in order to follow the requirements of being a “peace, justice and strong institutions”, CIMC has taken the best practices of the world in corporate governance as examples and specifications of regulatory agencies as guidelines to continuously improve its corporate governance. As a listed company founded at a time when China’s reform and opening up was introduced, CIMC has responded to the requirements of contributing to “good health and well-being”, “decent work and economic growth”, and strongly encouraged its subsidiaries located around the world to implement the core strategy of human resources of “partnerships for the goals”, i.e. to earnestly respect and protect the legitimate rights and interests of employees, actively fulfill social responsibilities, strengthen community interaction, advance targeted poverty alleviation, and promote community prosperity.
In 2019, CIMC Group unswervingly advanced its sustainable development strategy, and achieved fruitful results upon taking effective actions in the four key areas of “deepening responsibility governance”, “driving global logistics”, “responding to climate change” and “extending care”. The 2019 Corporate Social Responsibility & Environmental, Social and Governance Report published by CIMC Group this year will present a comprehensive, detailed and lively picture of CIMC’s sustainable development practices to stakeholders. CIMC people not only hope to record their every progress on the road of sustainable development with this report, but also look forward to the feedback from various stakeholders on this report, so that they can improve our management by reporting, and continue to improve the sustainable development management of CIMC Group.
At the beginning of 2020, the outbreak of a new coronavirus has caught the attention of hundreds of millions of people. In this regard, CIMC Group has seriously implemented national deployment and arrangements to ensure scientific epidemic prevention and orderly resumption of work for the entire Group, and actively supported the frontline of epidemic controlling and prevention by giving full play to its professional advantages and the ability to integrate global resources to provide quality products and services and organize a number of related activities. The joint fight against the epidemic is a perfect reflection of CIMC’s political character to serve the country and the people, virtues of hard working, and spirit of selfless dedication.
In the coming year, despite the changing global economic situation, CIMC Group will keep following its sustainable development strategy, march on with the ultimate objective in mind and seize the time to work harder to reward our shareholders, stakeholders and the community. Specifically, we will:
• Develop and implement an action plan in response to the new rules of the Hong Kong Stock Exchange on ESG guidelines.
• Strengthen the role of ESG in leading the board of directors of the Group and its subsidiaries, and deepen their joint responsibilities.
• Integrate sustainable development strategies and goals into the 5S management system, and make them a consensus for the development of the entire group.
• Exert more efforts in the implementation of champion product strategy, and drive global logistics with more and better products and services through technological development.
• Deepen the implementation of the “CIMC Green Development Plan” and build and improve more green factories and green supply chains. Dramatically reduce emissions of all kinds and work with global partners to tackle climate change.
• Advance the implementation of the core strategy of human resources of “partnerships for the goals”, and strictly ensure the occupational safety and health of employees, especially the occupational health of employees returning to work after new coronavirus epidemic.
• Strongly encourage subsidiaries around the world to actively fulfill their social responsibilities and promote community prosperity. Encourage and motivate domestic subsidiaries to respond to the central government’s call for “building a moderately prosperous society in all respects”, working together as one to win the battle against poverty alleviation.
CIMC Group will always uphold its corporate spirit of “the pursuit of self-improvement and excellence”, implement its business philosophy of “operating according to law and regulation and in a safe and green way”, with an aim to contribute more to the building of a moderately prosperous society in all respects, and sustainable development of human society. We believe that, we will make countless progresses in the future of sustainable development.
Executive Director, CEO and President