GTJAI Announced that It Achieved "Carbon Neutrality"

at Operational Level for the First Time

[26 June 2023, Hong Kong] Guotai Junan International Holdings Limited (“Guotai Junan International”, the “Company” or “GTJAI”, stock code: 1788.HK) announced that, leveraging on the Company's focus on climate change and environmental issues along with the comprehensive and efficient implementation of relevant measures, the Company's greenhouse gas (“GHG”) emissions and energy consumption have both decreased significantly in recent years, while the total greenhouse gas emissions from the company's operational level have been reduced for three consecutive years. On this basis, the Company has successfully further offset the greenhouse gas emissions generated during its operation in 2022 by subscribing for the carbon assets of a VCS forestry project from Mainland China, successfully achieved carbon neutrality at the operational level for the first time.

Attaching great importance to the issues of climate change, greenhouse gas emissions have been successfully reduced for the third consecutive year

In recent years, GTJAI has been continuously improving its ESG management level. In particular, it has introduced a series of measures to address environmental and climate change risks, as it has set up relevant timetable, which includes plans to switch to clean fuel vehicles on demand, remove unnecessary high-carbon emission fire protection system in office, properly control the temperature of air-conditioning in the office, posting energy-saving slogans to improve energy-saving awareness and other measures to reduce greenhouse gas and carbon emissions. Based on the emphasis on tackling climate change and environmental issues, the Group’s total greenhouse gas emissions and total energy consumption decreased by 9% and 3% year-on-year respectively in 2022. Meanwhile, waste emissions such as nitrogen oxides and sulfur oxides were also steadily reduced. In particular, greenhouse gas emissions have decreased year-on-year for the third consecutive year. In 2022, GTJAI has successfully formulated the Climate Change Policy. Meanwhile, the company has completed the climate risk assessment for all employees and disclosed it in the ESG report in accordance with the recommendations of the Task Force on Climate-related Financial Information Disclosure (TCFD).

Subscribe carbon assets that meet the world's most influential Verified Carbon Standard (VCS)

The project subscribed by the Company this time is located in the counties of Qianbei District, Zunyi City, Guizhou Province, China, covering an area of 50,000 hectares. It aims to reduce greenhouse gas emissions by changing barren hills and land uses, and transform degraded land into sustainable forest production system to improve the ecological environment and rocky desertification, increase the forest coverage of the project area, and ultimately produce environmental benefits in terms of climate, finance, local communities and biodiversity. The project has been assessed against the Verified Carbon Standard (VCS) and Climate, Community and Biodiversity criteria.

Emphasize on ESG development and strive to be a leader in green finance

Climate change is related to the survival and development of all mankind. Recently, China has actively and steadily promoted carbon peaking and carbon neutrality project, which not only reflects the responsibility from a major country, but also a historic opportunity for China’s economic development to reach a new level. GTJAI adheres to the belief and sentiment of " finance for the country", "finance for the people" and "finance for good", closely follows the guidance of the national economic development policy, and actively undertakes the responsibility in the process of implementing the goals of carbon peaking and carbon neutrality. Looking forward to the future, GTJAI will continue to respond to the country's dual carbon goals and strive to be the leader in the practice of green finance and ESG. In the process of corporate operation, GTJAI continues to optimize environmental protection and energy saving measures, reduce operational carbon emissions, strive to be the first to participate in environmental protection activities, maintain a leading level of corporate governance and compliance, consolidate the service capabilities of green finance, and demonstrate a responsible brand image.

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About GTJAI

Guotai Junan International (“GTJAI”, Stock Code: 1788.HK) is the market leader and first mover for internationalization of Chinese Securities Company as well as the first Chinese securities broker listed on the Main Board of The Hong Kong Stock Exchange through initial public offering. It has also been included in FTSE4Good Index by London Stock Exchange of the United Kingdom. Based in Hong Kong, GTJAI provides comprehensive, diversified and high-quality integrated financial services. Core business includes brokerage, corporate finance, asset management, loans and financing, financial products, which cover three dimensions including individual finance (wealth management), institutional finance (institutional investor services and corporate finance service) and investment management. GTJAI has been assigned “Baa2” and “BBB+” long term issuer rating from Moody and Standard & Poor respectively. The controlling shareholder, Guotai Junan Securities Company Limited (Stock Code: 601211.SH; 2611.HK), is the comprehensive financial provider with a long-term, sustainable and overall leading position in the Chinese securities industry. For more information about GTJAI, please visit http://www.gtjai.com

Note1：The VCS program managed by VERRA is currently the world's most influential greenhouse gas (GHG) voluntary certification project standard. Under its standard, certified projects can convert greenhouse gas emission reductions into tradable carbon credits Forehead. VCS projects include various technologies and measures that can reduce and remove greenhouse gas emissions, covering multiple fields such as renewable energy (such as wind energy, hydropower, photovoltaics, etc.), land use (such as forest management projects), transportation, etc. At present, nearly 1,800 projects have been registered in more than 82 countries around the world.