On April 26, Shuijingfang released its 2023 ESG report, which is the third ESG report released by Shuijingfang. In this year's report, Shuijingfang for the first time took climate-related risk and opportunity analysis as a special chapter, and introduced the internationally recognized TCFD (Task Force on Climate-related Financial Disclosures) recommendations as a climate information disclosure framework, showing the advanced and forward-looking nature of domestic ESG information disclosure. As one of the few A-share listed companies to accept a third-party independent ESG report, the Shuijingfang ESG report further improves the credibility and transparency of the disclosed information and data, and sets a benchmark for industry disclosure.
On the basis of continuously upgrading ESG disclosure standards, Shuijingfang also pays attention to the effectiveness of practice. 2023 is the first year for the promotion and implementation of Shuijingfang's "2035 Sustainable Development Goals". In the year of struggle, Shuijingfang actively and steadily promoted the process of the goal, and took solid steps in various key areas: in terms of raw grain quality control, Shuijingfang explored the order planting mode of raw grain, and realized the transition of order planting from the original single trade model in the procurement mode of sorghum and glutinous rice, and is carrying out "green food production and planting certification" In addition, Shuijingfang officially became the latest member of the United Nations Global Compact, committed to the implementation of the "Ten Principles of the Global Compact" based on the United Nations Convention, covering labor standards, environmental protection and anti-corruption, marking Shuijingfang's firm commitment in the field of sustainable development Through the participation of public welfare projects such as the Friendly Neighbor Program, sports charity, and intangible cultural heritage, more Shuijingfang people are encouraged to pay attention to, understand and actively practice the ESG concept with practical actions, so that the strategy of "Shuijingfang, Respect for the Future" will be more practical and practical.
The solid ESG management work and the results achieved have enabled Shuijingfang to be recognized by the capital market that pays attention to ESG, and has given Shuijingfang a higher level of evaluation in the ESG rating. Taking the rating of MSCI, an internationally renowned ESG rating agency, as an example, Shuijingfang's rating was upgraded from B to BB in 2023, ranking first in the liquor industry, and S&P Global's rating of Shuijingfang increased from 33 in 2022 to 41 in 2023, surpassing 74% of the participating companies in the same industry. In CDP's Global Environmental Information Research Center rating, Shuijingfang's climate change rating has been upgraded from C to B, a significant increase of two levels compared with the same period last year, further indicating that Shuijingfang is an industry leader in climate and environmental management.
Focus on standardization and cutting-edge, and lead the industry to new standards for ESG practices
As one of the earliest liquor companies in China to formulate a measurable ESG target system, Shuijingfang has integrated ESG concepts into its development strategy early. From the beginning of the preparation of ESG reports, Shuijingfang has always put the analysis of material issues at the core, focusing on the key issues that are most closely related to the company. The company adheres to the principles of high transparency and integrity, and ensures the accuracy and objectivity of the ESG report through in-depth field research and data collection. In addition, Shuijingfang actively advocates and pays attention to the standardization and normalization of ESG reports, and has been following international ESG information disclosure guidelines and evaluation standards to ensure that the content of the report is consistent with the standards.
In 2023, the compilation of Shuijingfang's ESG report will still refer to the GRI principles of international mainstream ESG disclosure, and closely refer to the forefront of domestic sustainable development information disclosure. Conduct comprehensive and detailed ESG disclosure with international standards and ESG disclosure specifications with Chinese characteristics and industry characteristics.
In addition to the standardization of information disclosure, Shuijingfang also continuously explores the cutting-edge topics of ESG practice, and designs and improves the company's ESG strategy and management system from the top level. In 2023, Shuijingfang officially joined the United Nations Global Compact, becoming one of the first companies in the industry to join the United Nations Global Compact. In recent years, Shuijingfang's ESG rating results have been improved year by year, ranking at the forefront of the industry, and it is also the only liquor company to be included in the Standard & Poor's "Sustainability Yearbook (China Edition)". In the future, Shuijingfang will continue to integrate social responsibility into the company's strategy and operations, and promote global progress and development through cooperation, innovation and knowledge sharing.
Strengthen the implementation and improve the effectiveness of ESG practices in the industry
Through concrete and quantifiable ESG practices, Shuijingfang ensures that its commitment to social responsibility, environmental protection and corporate governance is not just a slogan, but is translated into practical actions and visible results. Shuijingfang has established an ESG management committee under the supervision and guidance of the board of directors, composed of heads of various departments and chaired by the CEO, who meets regularly every three months to manage the progress of the company's ESG strategy and goals. The ESG working group, composed of the company's various business units that manage ESG objectives, then implements the specific promotion plan agreed upon at the meeting, and also incorporates the advice of external experts to ensure that the ESG strategy is implemented in daily work.
"As a liquor company spanning primary, secondary and tertiary industries, Shuijingfang's investment, production and business activities are linked to the expectations of multiple stakeholders, so promoting the green and high-quality development of the industrial chain in an all-round way will surely become the key to our sustainable success in the future. Jiang Leifeng, acting general manager of Shuijingfang, said.
In order to achieve the goal of becoming an "environment-friendly enterprise", Shuijingfang has established a complete environmental sustainable development governance system, through clear environmental protection commitments and core principles, as well as a governance structure for all departments to work together, to ensure the full implementation of environmental protection work in the company's operations. On a daily basis, we continue to promote environmental compliance management by setting up special funds for environmental protection and adopting advanced sewage treatment technologies. At the same time, Shuijingfang also pays attention to the construction of a green supply chain, and conducts strict environmental assessment and audit of suppliers to ensure the greening of the supply chain. In terms of production practice, Shuijingfang relies on modern technology to integrate the quality and safety of liquor with international access standards, take the lead in implementing national standards and international distilled spirits standards in the industry at the same time, and strictly control product quality through domestic and international double standards. At the same time, Shuijingfang formulated the "Marketing Code" to control product marketing objects, marketing content, marketing activities, product labels, and rational drinking advocacy, and promote the implementation of the code inside and outside the company.
In the practice of the social field, in 2023, Shuijingfang will carry out a total of 6 types of public welfare projects, covering community friendly neighbor programs, rural revitalization, social responsibility research, earthquake relief, intangible cultural heritage protection and inheritance, sports public welfare and other fields, with a cash donation of more than 5 million yuan for public welfare and charity. In order to integrate the mission of corporate citizenship into the corporate culture, Shuijingfang officially established the "Shuijingfang Charity Day" on the occasion of the International Volunteer Day on December 5, 2023, established the Shuijingfang volunteer team, and released the employee volunteer action initiative and volunteer logo, which further enriched the company's social responsibility system and stimulated its internal motivation to firmly practice corporate social responsibility by promoting the construction of the Shuijingfang volunteer platform and enriching the content of public welfare activities. Similarly, Shuijingfang adheres to the core concept of "trust, participation, symbiosis, and co-construction", and actively plans the public welfare projects of the "Friendly Neighbor Program", aiming to strengthen the positive interaction with the residents of the surrounding communities, convey the social responsibility and volunteer service spirit of Shuijingfang, and promote the symbiosis and co-prosperity of the community.
The release of Shuijingfang's 2023 ESG report not only demonstrates the company's strong commitment to sustainable development, but also demonstrates its achievements and progress in environmental protection, social responsibility and corporate governance to all stakeholders. Through standardized, implemented and advanced information disclosure and practice, Shuijingfang has further strengthened the trust relationship with investors, consumers and partners, and helped promote the sustainable development of the entire industry. In the future, Shuijingfang will continue to innovate and improve its sustainable development strategy to achieve the long-term goal of greener, inclusive and responsible, and contribute to the development of our communities and the whole society.