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Reduce emissions by 2.3 million tons a year! SF Express, a "doer", leads the sustainable development of the instant distribution industry

author:Express ecosystem Zhao Xiaomin

The main target groups of the express ecosystem: (investors, private equity funds, brokerage institutions, local government decision-makers, express regulatory departments, express delivery operators, media practitioners, express upstream and downstream operators, franchise network owners, express logistics practitioners with an annual salary of more than 300,000 yuan)

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| Express Ecosystem Information Group

Reduce emissions by 2.3 million tons a year! SF Express, a "doer", leads the sustainable development of the instant distribution industry

In recent years, as an internationally recognized concept of sustainable development, ESG has become one of the important dimensions to measure the value of long-term investment, emphasizing ecological environmental protection, fulfilling social responsibilities, and improving governance. This year marks the 20th anniversary of the United Nations Compact's ESG concept, and "ESG" has become a high-profile element in the business sector of various countries since it first entered the public eye.

On April 26, Hangzhou SF City Industrial Co., Ltd. (hereinafter referred to as "SF City" or the "Company") released the Environmental, Social and Governance Report (hereinafter referred to as the "ESG Report") for the third consecutive year, which is also the first time that SF City has released a separate ESG report. The report elaborates on the company's practices and achievements in the field of ESG in 2023 from the four aspects of governance, society, environment and services, and reflects the company's thinking and response in the field of sustainable development.

Improve the three-tier ESG governance structure and further enhance the diversity of directors, supervisors and senior executives

SF has established a three-level ESG governance structure with the board of directors as the core, forming a top-down closed-loop management mechanism. In 2023, SF also established a new ESG Committee led by Chairman and CEO Mr. Sun Haijin and composed of executive directors and ESG-related management, which marks the company's further integration of environmental protection, social responsibility and good governance into the company's core operations.

Reduce emissions by 2.3 million tons a year! SF Express, a "doer", leads the sustainable development of the instant distribution industry

In addition, SF City attaches great importance to the diversity of directors, supervisors and senior executives, with members from various fields such as logistics, Internet, technology, new consumption, strategic investment and financial management, and the Company appointed one female director and one female supervisor during the year, further increasing the proportion of female directors, supervisors and senior executives to 34%, reflecting the Company's continuous improvement of good corporate governance and the positive upgrading of the diversity of the Board of Directors.

Disclose "Scope 3" carbon emissions for the first time, green and low-carbon penetrate into the whole life cycle of business

For a long time, with the development of e-commerce and global trade, the carbon emissions of the logistics industry account for a considerable proportion of the world, and the continuous increase in transportation mileage, the continuous increase in transportation tools, and the continuous improvement of transportation quality requirements have led to the continuous increase in the total amount and emission speed of logistics activities.

Guided by the implementation of the national dual-carbon strategy and with the goal of protecting the environment, saving energy and reducing emissions, SF City has integrated climate change response into the company's management and operation practices, continuously improved the environmental management system, and achieved green management covering the entire logistics life cycle by promoting green distribution, green operation, focusing on the application of clean energy, practicing the concept of green packaging and applying green technology.

In this year's report, SF City calculates and discloses for the first time "Scope 3 (indirect emissions related to operations and supply chain)" carbon emissions, covering the carbon emissions of rider delivery, employee travel and supplier activities. This measure further demonstrates SF's determination and effectiveness in practicing green and low-carbon in the same city.

Reduce emissions by 2.3 million tons a year! SF Express, a "doer", leads the sustainable development of the instant distribution industry

Source: SF City's ESG Key Performance Table

In terms of green delivery, SF has implemented a more environmentally friendly instant delivery model in the same city. Through the use of e-mobility for riders, it replaces the potential demand for truck delivery or private car travel purchases, and consumers' personal errands. During the reporting period, SF Express used electric vehicles to deliver more than 98% of the more than 7.8 billion kilometers of total annual delivery distance in the same city.

At the same time, SF City also optimizes route planning, reduces delivery mileage, improves distribution efficiency, and reduces energy consumption through digital means and cloud computing platforms, so that each order has its own carbon footprint. As a result of this series of actions, its Scope 4 avoided carbon emissions have been reduced by about 2.3 million tons of carbon emissions.

In terms of green packaging, SF actively responded to national policies and took the initiative to develop and put into use recyclable document seals to promote resource conservation, recycling and efficient use. During the reporting period, the company put into use a total of 64,000 recyclable document covers, which is equivalent to reducing the use of 3.2 million paper document covers.

Reduce emissions by 2.3 million tons a year! SF Express, a "doer", leads the sustainable development of the instant distribution industry

In addition, in terms of green office, through the implementation of the e-signature platform, SF will reduce the use of about 290,000 paper contracts in 2023, which is equivalent to reducing carbon emissions by about 50.895 tons of carbon dioxide equivalent.

Tackling climate change is a global imperative and the consensus of forward-thinking companies. In response to climate-related risks, SF Intra-city discloses climate-related work plans and achievements from four aspects: governance, strategy, risk management, and indicators in accordance with the TCFD guidelines.

For example, in response to severe weather, SF City issued timely warnings of abnormal weather through the rider app, and ensured the safety of delivery by providing emergency equipment and conducting daily relevant training...... In the process of business development and operation management, we actively identify and assess climate change risks and their potential impacts, formulate targeted countermeasures, and conduct climate scenario analysis in advance, and strive to become a participant and contributor to the long-distance race to address climate change.

Technological innovation empowers services to improve quality and efficiency, and customer satisfaction continues to lead

Providing customers with high-quality and efficient delivery services is the core competitiveness of the company and the key to practicing ESG value. As the largest third-party instant delivery service platform in China, SF is committed to providing customers with high-quality, efficient and stable full-scene instant delivery services.

As of the end of the reporting period, SF provided delivery services in more than 2,000 cities and counties across the country. Based on the self-developed CLS system, SF City can complete the most efficient matching and distribution of huge volume and highly differentiated orders in a short time, improve distribution efficiency and customer experience, truly realize technology-driven business operations, and build professional and differentiated distribution capabilities. Based on technological innovation and external empowerment, SF Express has an annual compliance rate of 95% in the same city, and the timeliness achievement rate fluctuates by no more than 2% and 3% during holidays and inclement weather, respectively.

Reduce emissions by 2.3 million tons a year! SF Express, a "doer", leads the sustainable development of the instant distribution industry

Technology empowerment not only improves the fulfillment timeliness rate, but also enables SF Express to achieve both high-quality services and full-scenario coverage in the field of real-time delivery.

All along, SF City has adhered to the positioning of "independent third party", taking the lead in embracing the trend of real-time retail in all scenarios, and providing professional and stable services for participants in all formats. Throughout 2023, SF will continue to cooperate with multiple platforms such as Douyin, Alibaba, and WeChat to explore new formats of local life, such as live streaming and home delivery, near-field e-commerce, and private domain delivery. Not only that, SF City has also joined hands with Meituan Takeaway to jointly promote the upgrade of instant consumption experience, achieve more stable fulfillment, and lead the industry towards competition and cooperation.

Reduce emissions by 2.3 million tons a year! SF Express, a "doer", leads the sustainable development of the instant distribution industry

In March 2023, SF City, as a representative enterprise in the industry, participated in the formulation of the first national standard in the field of instant delivery, "Instant Delivery Service Specification", which promoted the service quality and efficiency of the entire industry. By jointly establishing the "Catering Distribution Service Industry Association" with local restaurant chain brands, SF City continuously promotes the timely updating of service standards, demonstrating the company's social responsibility in promoting industrial progress and maintaining market order.

At a time when information security is being taken seriously by the public, SF City has also established strict data security and privacy protection measures to protect the data security of riders, merchants and users on the platform. In terms of basic information security management organization, the company has built a three-level information security management architecture of "decision-management-implementation", and conducts comprehensive information security management and control from three dimensions: network security, information security and data security.

Reduce emissions by 2.3 million tons a year! SF Express, a "doer", leads the sustainable development of the instant distribution industry

Since 2019, SF has introduced the use of virtual number technology to protect the personal information of users and riders, and in 2023, the company will fully adopt the concept of zero trust security protection to replace traditional VPNs to strengthen the security of remote access for employees, and the SF Express and Rider apps will transparently convey the principle of personal information protection to riders and users through pop-up windows and other prominent ways when the SF Express and Rider apps are run for the first time, thereby enhancing the trust and security of users and riders in the company.

In addition, SF City attaches great importance to customer experience, and improves user experience through end-to-end digital management, with a 100% consumer complaint handling rate. At the same time, the company actively carried out satisfaction experience surveys including merchants, riders and consumers, and the survey results were among the top in the industry.

Comprehensive attention to the health and interests of riders "Health file" has become the first case in the industry

The "Report on the Development of China's Sharing Economy (2023)" released by the State Information Center proposes that the sharing economy plays an important role in stabilizing jobs and employment. In 2023, the number of active riders in SF Express will reach 950,000, and the platform's sharing economy model provides flexible employment opportunities for many riders, further reflecting the value of the "employment reservoir" of the rider profession.

For a long time, SF City has regarded riders as its first partner, and is committed to building a rider-friendly platform in the industry, and building a healthy development of the rider ecosystem by focusing on rider safety and health, online fulfillment experience, personal development and skill improvement, rights protection and platform services, care and communication, and other dimensions and corresponding frequency improvements.

Reduce emissions by 2.3 million tons a year! SF Express, a "doer", leads the sustainable development of the instant distribution industry

In terms of ensuring the safety of riders, SF has established a "whole-process" rider safety management system in the same city, and the annual safety accident rate of one million orders has decreased. At the same time, SF actively carried out safety training in the same city, and conducted more than 1,500 online and offline safety trainings during the year, with more than 1.1 million participants. In addition, the company has invested heavily in intelligent hardware equipment, and has distributed more than 10,000 smart helmet products to riders.

In terms of riders' career development, SF provides riders with multiple career development channels and encourages riders to freely choose their development paths according to their personal interests. In 2023, the company will cooperate with Shenzhen Open University to launch the "Dream Realization Program" to provide scholarship support for riders to receive education for further study.

Reduce emissions by 2.3 million tons a year! SF Express, a "doer", leads the sustainable development of the instant distribution industry

In terms of rider care, SF Express has taken a number of measures to improve riders' work experience throughout the year, and has built more than 3,000 rider stations across the country, covering 100% of major cities, providing riders with convenient services such as rest, charging and battery swapping, and emergency rescue. In addition, for female riders, SF Express organized two cancer screening activities in the same city to enhance the awareness of cancer prevention and control among female riders, and took the lead in the industry to launch exclusive uniforms for female riders to implement care for female riders.

In view of the health problems that riders are prone to in the process of running orders, SF City and Guangzhou Physical Health Management Association have established "health files" for riders on a pilot basis in Guangzhou to provide targeted treatment plans, which has become a precedent in the industry.

Assume social responsibility, give back to the public, and build a better life

Social responsibility is the unity of corporate interests and social interests, and the behavior of enterprises to assume social responsibility is a kind of "mutually beneficial" behavior that safeguards the long-term interests of enterprises and meets the requirements of social development, which can create a broader living space for themselves. As a responsible and responsible pioneer enterprise, SF City has been committed to improving the well-being of the society and people's livelihood through its own business practices.

In 2023, SF City will continue to cooperate with Shanghai Huangpu Laoximen Street to provide efficient meal delivery services for the community, delivering meals to the elderly in the street for more than 60,000 times, improving the quality of elderly care services through elderly assistance actions, and actively responding to the national policy requirements such as the "Opinions on Developing the Silver Economy and Improving the Well-being of the Elderly".

Reduce emissions by 2.3 million tons a year! SF Express, a "doer", leads the sustainable development of the instant distribution industry

As an infrastructure, rural logistics and distribution carries the role of agricultural products upward and industrial products downward, which is of great significance for the comprehensive revitalization of rural areas and the release of rural consumption vitality. During the year, SF cooperated with the local government of Ganzi, Sichuan Province to build a local life platform "Play in Ganzi", which will help rural revitalization be implemented.

In addition, riders from the same city of SF Express are also enthusiastically engaged in public welfare undertakings and fully carry forward the culture of good people -- Li Dongyue, a rider from the Shanghai Theater of Operations, donated blood 101 times with his unique hematopoietic stem cell conditions, saving many lives and won the "National Gold Award for Unpaid Blood Donation"; Liang Kun, a rider from the Suzhou-Anhui Theater of Operations, rescued a drowning woman and then left silently without leaving his name; Chen Saiqiang, a rider from the Northeast Theater, rescued children who were stuck in the throat by cherries in critical situations, and provided long-term funding for poor students for up to 7 years, allowing 5 students to enter the campus...... Continuously transmit positive energy to the society.

Reduce emissions by 2.3 million tons a year! SF Express, a "doer", leads the sustainable development of the instant distribution industry

As a third-party instant distribution leader in the industry, SF Intra-city provides large-scale, open and all-weather professional services to all participants in the new consumer industry in a neutral and equal manner, providing large-scale, open and all-weather professional services for merchants, users, major business flows and logistics platforms.

In the process of practicing business, SF City has built the platform into a more inclusive and fair win-win space, providing better protection for riders, allowing riders to find their own way of working on the platform, feel the platform's high-quality services, and pass on this high-quality service to customers and users through riders.

Whether it is improving service quality, responding to environmental protection policies for green and low-carbon, or comprehensively caring for the health and interests of riders, and promoting riders to devote themselves to public welfare and practice social value, SF City has been at the forefront of the industry in further exploring the specific practice of ESG. These measures not only contribute to social and environmental protection, but also bring green and sustainable competitive advantages and growth momentum to the company, making SF City attract much attention in the capital market.

According to the vice chairman and secretary-general of the China Development Research Foundation, companies that value ESG performance are generally more favored by the market, have lower financing costs, and operate more robustly. The ESG asset portfolio of investment institutions usually shows a more stable and sustainable value return than the non-ESG asset portfolio, with higher investment value and growth potential.

In the future, adhering to the mission of "allowing more people to enjoy a better life at zero distance", it is believed that on the basis of maintaining the scarcity advantage of "independent third party" and creating a stable and high-quality performance model, SF will further consolidate its advantages in full-scenario services, and continue to explore and deepen ESG-related strategies and practices, so as to lead the ready-to-use industry towards a greener, greener, and more sustainable future.

Express ecosystem

It has been settled on the following platforms

Snowball | Straight flush | Oriental Fortune | Futu |

Weibo | Today's headlines | Zhihu | Penguin

Tik Tok | Xiaohongshu|Kuaishou|Video number|Himalayas

Twitter|ins|YouTube|Station B

Recently, the stock market continues to fluctuate, some criminals illegally make profits, harming the legitimate rights and interests of investors, I will increase the supervision of trading behavior, enrich the means of clue screening, make overall arrangements for special verification, strengthen the "penetrating" transaction monitoring, use multi-dimensional technical means to collect market intelligence, and carry out joint research and judgment with the Ministry of Public Security, and find a number of cases suspected of manipulating the market and malicious shorting.

An illegal gang controlled more than 100 securities accounts to manipulate a certain stock, used continuous pulling, reverse trading and other methods to affect the stock price, and then waited for the opportunity to clear the stock and smash the shipment, resulting in a flash crash and continuous decline in the price of individual stocks, with a total of 2.7 billion yuan sold and an illegal profit of about 130 million yuan.

The actual controller of an investment institution manipulated the prices of more than 20 stocks by suppressing stock prices, absorbing chips at a low level, and continuously pulling up, resulting in rapid fluctuations in the prices of individual stocks, and even extreme markets such as "sky flooring" within a day, from which the transaction illegally profited 140 million yuan.

A certain lawbreaker took advantage of his capital advantage and used hundreds of millions of yuan to frequently make false declarations for many futures products on the futures exchange, creating a false impression of trading, deceiving other investors, and taking the opportunity to sell them for a profit of more than 4,000 yuan.

The China Securities Regulatory Commission (CSRC) insists on responding quickly and resolutely investigating and dealing with illegal acts that affect the stable operation of the stock market and harm the legitimate rights and interests of investors.

Manipulating the market to maliciously short-sell, seriously eroding the people's "money bags", has stood on the opposite side of all stockholders, disrupting the normal rhythm of the healthy and stable operation of the stock market. The China Securities Regulatory Commission will maintain a high-pressure posture of "zero tolerance", resolutely crack down, and let those who dare to illegally manipulate and maliciously short sellers "go bankrupt and sit in prison". In this warning, don't defy the law and take the chestnut from the fire.

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The main target groups of the express ecosystem: (investors, private equity funds, brokerage institutions, local government decision-makers, express supervision departments, express logistics operators, media practitioners, express logistics upstream and downstream operators, franchise network owners, express logistics practitioners with an annual salary of more than 300,000 yuan.

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The publication of this article is for the purpose of conveying more information, which does not mean that it agrees with its views or confirms its description, and does not make any guarantee for its authenticity, accuracy, completeness and appropriateness of use.

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