SF Intra-city 2023 ESG Report: Reducing carbon emissions across multiple steps, further advancing sustainability in the service chain and corporate operations

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May 02, 2024, 02:17 ET

HONG KONG, May 2, 2024 /PRNewswire/ -- Hangzhou SF Intra-city Industrial Co., Ltd. ("SF Intra-city" or the "Group", Stock Code: 9699.HK), China's largest third-party on-demand delivery service provider, is pleased to announce its 2023 Environmental, Social and Governance Report ("ESG Report") for the year ended 31 December 2023 (the "Period"). The Group has engaged a third-party organization for the first time to verify the ESG Report and issued a third-party verification report. The Group established an ESG Committee in 2023 to strengthen the establishment and management of environmental performance indicators, systematically implemented measures to reduce carbon emissions and progressed positively, thereby enhancing the ESG management level of the on-demand delivery industry. In 2023, key performance indicators such as the total amount of packaging materials showed significant savings, with a year-on-year ("YoY") reduction of over 90%, reaching 103,600 tons.

Multi-Dimensional Achievements in Energy Conservation and Emissions Reduction: The Group Proactively Responds to Climate Change

During the Period, the Group calculated and disclosed Scope 3 carbon emissions for the first time, covering carbon emissions from riders' delivery, employees' travel and suppliers' activities, and continuing to actively explore effective practices for emission reduction. During the Period, the Group (i) adopted green delivery, with an annual total delivery distance of more than 7.8 billion km, of which more than 98% of the delivery distance was achieved by using electric vehicles, reducing about 2.3 million tonnes of carbon emissions; (ii) considered the real-time position of the rider, the position of the order and other factors, resulting in optimal route planning, shorter mileage, and energy consumption reduction through its City Logistics System; (iii) implemented green packaging with 64,000 recyclable document envelopes put into use during the Period, which was equivalent to reducing the use of 3.2 million paper document envelopes; (iv) used the e-signature platform actively to reduce the use of about 290,000 paper contracts annually and lower carbon emissions by about 50.895 tonnes of carbon dioxide equivalents during the Period.

Responding to climate change is a global imperative and a consensus among forward-thinking companies in all industries. SF Intra-city, as a leading platform of third-party on-demand delivery services, recognizes the critical role it plays in this area. With reference to the Task Force on Climate-related Financial Disclosure ("TCFD") guidelines, the Group has taken environmental protection and climate change into consideration in the process of business development and operation management. Additionally, the Group has actively identified and assessed climate change risks and opportunities, and has systematically compiled its response strategy to climate change. Furthermore, the Group has utilized the recommended framework of the TCFD to disclose its climate-related work plans and achievements in four major areas, namely, governance, strategy, risk management, and metrics and targets, to clearly outline the Group's approach and demonstrate its commitment to addressing the climate issues.

The Group has incorporated green environmental protection into the assessment index for suppliers, resulting in a signing rate of 100% for both the supplier integrity agreement and the supplier social responsibility clauses. In accordance with the recommendations of the TCFD, the Group recognized the risks associated with climate change and its potential impact on business and developed effective measures to mitigate these risks. The Group is committed to actively participating and contributing to long-term initiatives aimed at addressing climate change and promoting sustainable development within the industry.

Enhanced Employee Well-being Contributes to the Group's Advancement of Corporate Social Value

The Group has attached great importance to the holistic development of employees at all stages, levels, and functions. 17,746 attendees participated in training during the Period, with a total investment of RMB6.73 million in training. The Group has invested RMB2.85 million in caring for its employees and expressed care to employees and their family members through nearly 50,000 visits. During the Period, the number of active riders reached 950,000, with a YoY growth of 31% for riders in the middle to high-income bracket. The Group has created a warm and friendly career platform with sustainable development opportunities for riders by means of "remuneration + training + care + culture". To protect the safety of riders, the Group has invested heavily in intelligent hardware equipment to protect the safety of the operation of riders, and has allocated more than 10,000 intelligent helmets in total. This helmet is designed to analyze accident claim rates for comparative purposes, enhancing rider driving safety. Furthermore, rider rest stations across the country have exceeded 3,000, with major cities achieving comprehensive coverage of 100%. These stations serve as essential facilities for riders, providing them with amenities for resting, charging and exchanging batteries, as well as serving as emergency response locations. During the Period, the Group has conducted a total of over 1,500 online and offline safety training sessions, with participation exceeding 1.1 million individuals.

The Group actively strives to enhance gender diversity among its directors, supervisors, and senior management, with the proportion of females to 34%. Additionally, the Group highly encourages female riders to participate in cancer screening activities, aiming to raise awareness of cancer prevention and control. As an industry pioneer, the Group has launched exclusive uniforms for female riders. Furthermore, the Group provides comprehensive support for the personal development of riders, including channels for academic qualification improvement, vocational skills certification, and multi-disciplinary courses. During the Period, approximately 2.4 million riders participated in 200 courses, resulting in over 8,000 riders being promoted to team leaders and 540 riders passing the professional qualification certification at the municipal level.

The Group has established a systematic rights and benefits management model to give full play to the riders' activeness. Additionally, fundamental support has been provided to every rider on the platform through a flexible incentive mechanism and a reliable process for addressing complaints, insurance, and claims. This approach showcases the Group's commitment to recognizing and prioritizing the well-being of each rider, ensuring their rights and interests are protected.

The management team of SF Intra-city said, "As a leader in the logistics industry, the Group strives to incorporate the concept of sustainable development into every aspect of our business operations and management. This includes adopting clean energy-powered delivery vehicles, promoting sustainable packaging materials, strengthening ESG risk management, setting clear energy-saving and emissions reduction targets, and adhering to a people-oriented business philosophy. We are dedicated to building a green delivery ecosystem that creates long-term value for our customers, partners, and investors."

SOURCE SF Intra-city