GTJAI Environmental, Social and Governance (“ESG”) Policy 

ESG Committee, Guotai Junan International  

1.  Statement

Guotai Junan International Holdings Limited (the “Company”, together with its subsidiaries  from time to time, the “Group”)believes that ESG is viewed as a business philosophy that  creates sustainable value for our stakeholders by embracing opportunities and managing  risks deriving from economic, environmental and social conditions, which is crucial for business success in nowadays. This ESG policy (the ”Policy”) promotes socially responsible conduct by integrating ESG  management best practices and processes and outlining the  ESG-related risk management within our daily operations.

2. ESG Governance & Approach

The board of the directors of the Company (the “Board”) has overall responsibility for the  Company’s ESG strategy, performance and reporting matters. The Board has established and delegated the ESG Committee to advise and assist the Board in overseeing matters relating to sustainability development and ESG practices of the Group, covering governance, policies, objectives and strategy, performance and reporting. The ESG Committee meets regularly and reports to the Board. The Policy should be reviewed by the ESG Committee, as appropriate, to ensure the effectiveness of the Policy.

ESG practices are embedded across all operations of the Group and we recognize the different needs in social, economic and environmental by various stakeholder groups. In achieving our ESG-related goals, the Company has identified the following core ESG areas that present challenges and opportunities for our business to operate in a responsible and sustainable manner.

3. People

The Company’s objective is to provide equal employment opportunities, foster a supportive and quality working environment, advocate a diverse and inclusive workplace and culture, uphold employees’ rights and interests, and facilitate meaningful communication within the Company. Details are set out in the Staff Handbook and the HR Recruitment and Selection Policy. 

4. Environment

The Company is committed to addressing environmental issues and reducing our environmental impact. Going beyond compliance with applicable legal and regulatory requirements, our objective is to assess, avoid, reduce and mitigate environmental risks and impacts associated with our business activities. 

5. Business

Our objective is to enhance long-term return for our shareholders by adopting responsible business practices which take into consideration of social and environmental needs and demonstrate a sustainable business.

5.1  Sustainable finance

Sustainable finance (also known as ESG investing) generally refers to the process of taking due considerations of ESG factors when making investment decisions in financial sector. The capital market has been in the center of global sustainability agenda, which demands “making finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development” and “as a catalyst for growth and social impact”. The Group adheres to promoting sustainable business practices while improving the risk return profile of the overall portfolio. 

5.2 Product responsibility

            The Group provides a wide range of financial products and services to meet investment and financing needs of clients, we are committed to serving them to 

            the best of our ability by continually elevating our level of service excellence. It is our objective to gain customer trusts in our products and services, and to 

            provide sufficient information to them for making informed investment decisions.

5.3 Supply chain management

We uphold the highest ethical and professional standards when dealing with product/ service providers (the “Supplier(s)”). It is our objective to reduce environmental and social risks along our supply chain. Apart from the Supplier Sustainable Policy (set out in Appendix II), the Group also has in place the stringent restrictions set out in the Compliance Manual in relation to laws on bribery, accepting and offering advantages, anti-corruption, referral fee, consultancy fee or rebate, etc.

6.  Community

As one of the integrated financial institution in Hong Kong, we are part of the society and committed to supporting the community through a diverse range of initiatives such as providing sponsorships and offering volunteer services. 

7.  Reporting and Disclosure

The Company has implemented and adopted the ESG Reporting Guide as set out in the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited (as amended from time to time). The Company will also review and make reference to ESG international guidelines or standards that set out our principles and performance indicators for ESG reporting. 

We shall disclose material information to appropriate stakeholders, including but not limited to regulators, shareholders, employees, business partners, suppliers, government and non-government organizations and the ESG reports of the Company are available on the websites of the Stock Exchange of Hong Kong Limited and the Company.

- End -