顺丰控股:2022年度可持续发展报告（英文版）

ENVIRONMENT
SOCIAL
GOVERNANCE
S.F. HOLDING
SUSTAINABILITY
REPORT
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0
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WE DELIVER AS PROMISED
S. F. Holding Co. Ltd.Zip Code: 518057 Customer Service Hotline: +86 95338 Website: www.sf-express.com
Address: Block B TK Chuangzhi Tiandi Building Keji South 1st Road Nanshan District Shenzhen Guangdong Province PR.China
S.F. HOLDING SUSTAINABILITY REPORTCONTENTS
Foreword to the
Report P002-P014
Chairman’s Message
About SF
Sustainability Management
P015-P028 P029-P048
Stay True to Original Technology Empowers
Mission and Write a Carbon Management
Governance New Chapter of Environment and Accelerates Business
Development Sustainability
Standardizing Corporate Governance Creating Green Logistics
Strengthening Risk Control Management Promoting Circular Economy
Abiding by Business Ethics Tackling Climate Change
Data Security Governance
P049-P077 P078-P088
Showcasing Love Building Digital Ecology
Enriching Creating Digital Intelligent
Society Communities Service Future
Talent Pool Development Innovation-driven Development
Ensuring Safety Production Securing Safety Delivery
Building Responsible Chain Together Building Quality Services
Bearing Social Responsibility
Appendix P090-P108
About the Report
Policy List
Key Performance
Indicator Index
Readers’ feedbackForeword to the Report
Chairman’s Message
About SF
Sustainability ManagementForeword to the Report
Chairman’s Message
is a significant year for China to embark upon a new trajectory of building a modern socialist country in all aspects and
heading into the goals of the second centenary and also a crucial year for the comprehensive implementation of the 14th Five-
Year Plan. As for SF it is another year to put down-to-earth efforts. This year as guided by its core logistics strategies SF held fast
to sustainable and healthy development pursuing the integration and unity of business development and social value and strived
to deliver more convenient reliable and thoughtful services to global customers.Spearheading the Industry to Forge Ahead
As an important channel for smooth production and consumption the express and logistics industry connects thousands of cities and industries andserves people around the world. Upholding the vision of “building a truly digitalized ecosystem with our partners driving towards global excellencewith our customers and striving for common prosperity and a better future for all” SF has continuously enhanced its business capabilities by centering
on its logistics ecosystem and vigorously built a digital supply chain ecosystem by capitalizing on our leading technological research and development
capabilities. SF has teamed up with partners to deliver high-quality services. In SF was debuted in the Fortune Global 500 showcasing its
unstopped pace towards greater success.Going All Out to Protect the Ecological Environment
Thanks to an insight into the significance of green development SF is committed to building sustainable green logistics supply chain services in
the hope of taking the lead to bring a positive influence to the whole industry and even the whole society through optimization and upgrading of
enterprise operations. In response to the national “Carbon Peaking and Carbon Neutrality” policy the Company has promoted green transformation
in all business links constantly lifted resource utilization reduced carbon emissions and energy consumption and fulfilled green responsibility by
increasing investment in new energy transportation capacity building photovoltaic industrial parks promoting green packaging and advocating green
office. In SF launched the industry’s first green initiative “Zero Carbon Future” extending green values to the industrial chain. While working
with upstream and downstream partners and customers SF has helped partners accelerate low-carbon transformation propelling the development of
green society.Giving Back to Society and Promoting Rural Revitalization
SF is in the full conviction that enterprises are closely bound up with the society and accordingly enterprise development mingles with social
responsibility. is a critical year for China to consistently push ahead with rural revitalization on all fronts. Adhering to the goal of driving the
supply side reform of rural industries SF continues to consolidate and expand the achievements of poverty alleviation by capitalizing on its own
logistics strength. The Company actively cooperates with local governments to build regional agricultural product brands and assists in branding of
Yangcheng Lake hairy crab Yantai cherry Lingnan lychee Yunnan flowers Ganzi matsutake etc. smoothing the upward channels of agricultural
products. By the end of the Reporting Period the Company’s service network for facilitating upward movement of agricultural products had covered
more than 2800 county-level cities across the country serving a total of over 4000 fresh varieties achieving transportation of 3.62 million tons of
special agricultural products and helping farmers generating income of more than RMB100 billion.Powered by thirty years of ups and downs as well as courageous struggle the Company ushered in its 30th anniversary. SF always believes that the
continuous creation of social value will bring in corporate value and business development which can in turn facilitate the Company to achieve long-
term stable development. Looking ahead SF will closely follow the national development strategy stay true to its original aspiration bravely shoulder
social responsibility serve people’s livelihood wholeheartedly and adhere to sustainable and healthy development in an effort to deliver considerable
value through high-quality services.
003Foreword to the Report
About SF
Company Profile
SF was established in Shunde Guangdong in 1993. After years of development it has become a leading comprehensive express and logistics service
provider in China and the fourth largest express company in the world. Adhering to the “user-centered demand-oriented and experience-based”
product design thinking SF focuses on industry characteristics and starts from customer application scenarios to deeply explore the customer’s end-to-
end full-process touchpoint needs and other personalized needs in different scenarios design products services and solutions suitable for customers
and keep optimizing product systems and service quality. Moreover SF applies technology to empower product innovation and develop industry
solutions to provide customers with intelligent and integrated smart supply chain solutions covering multiple industries and scenarios.Centering on the logistics ecosystem SF horizontally expands diversified business fields and vertically improves product stratification to meet the needs
of different market segments and cover the entire supply chain of customers. After years of development by virtue of the Company’s express delivery
network covering major countries and regions around the world SF provides customers with integrated supply chain solutions covering procurementproduction circulation sales and after-sales service. In addition as an intelligent logistics operator with the advantages of “aviation + ground +information” network scale SF has a business model with strong control over the entire networks.
004Foreword to the Report
SF Culture
This year marks the 30th anniversary of SF’s establishment. After 30 years of endeavor SF has built a corporate culture imprinted
with the brand of SF. For SF corporate culture is not only a belief but also a commitment and practice. It is reflected in the words
and deeds of all SF employees and in all SF’s business conduct and has become a strong spiritual force that is deeply cast in the
cohesion competitiveness and vitality of SF.Corporate vision
Corporate vision is the goal and blueprint of SF navigating the development direction of SFers.To build a truly digitalized To drive for global excellency
eco-system with our partners with our customers
To strive for common prosperity and a better future for all
For the society SF is a benchmark that continues to create excellent social value.For our customers SF is the preferred partner of all customers.For the Company SF is a leading player in global smart supply chains.For our employees SF is a promising platform for global talents to pursue excellence
achieve dreams and take pride in one’s career.Core Values
Core values are the value standards and basic faith that SFers must believe in guiding SFers the approaches to realize the corporate vision.Integrity and responsibility
Dedication to employees’ success
Dedication to customers’ success
Innovation and inclusiveness
Pursuit of excellence
In SF all people shall adhere to the principle of integrity and
responsibility take dedication to employees’ success and dedication to
customers’ success as their own tasks always be innovative and
inclusive pursue excellence and create a better future together.
005Foreword to the Report
Corporate Spirit
Corporate spirit is the team quality and spiritual outlook that SFers demonstrate in practice and is the portrait of SFers and the popular image of SF.Equality and respect
Integrity Pragmatism
Treat others and handle affairs in principle of
equality respect integrity and pragmatism.These Corporate Spirits are the practices of SF values
and also the public’s most intuitive perception of SF.Team Culture
SF’s team culture derived from SF’s vision core values and corporate culture with organizational characteristics guides SF to victory.Win the game; teamwork
Identify the weaknesses and make improvement
Promote the capable ones; coach; sunshine
The Company is like a team all the members gather to win for common
goal. They learn and grow here coordinate and cooperate with
each other train and fight together. The honor of the team means
personal achievement of each member.
006Foreword to the Report
Awards
Awards that SF received in Ranked 441st of Fortune Global 500 in Ranked 5th of Fortune’s Most Admired Chinese Companies in Named to Fortune China ESG Influential Listing
Ranked 19th of the BrandZ Top 100 Most Valuable Chinese Brands in Ranked 1st of Chinese Top 50 Private Logistics Enterprises in Ranked 3rd of Chinese Top 50 Logistics Enterprises in Ranked 27th of “China’s Top 500 Private Enterprises in ” of All-China Federation of Industry and Commerce
Listed on the “R&D Investment and Invention Patents of 500 Private Enterprises in ” of All-China Federation of Industry and
Commerce
Ranked 126th of “China’s Top 500 Enterprises in ” of China Enterprise Confederation and China Enterprise Directors Association
“Chinese brands favoured by foreigners in ” of National Brand Project Office of Xinhua News Agency
“Most Socially Responsible Listed Company Award” of Stock Star
Ranked 4th of “Top 25 Global Logistics Brands by Value in ” and 52nd of “China’s Top 500 Brands by Value in ” of Brand
Finance
Ranked in the list of China Business News’ “Golden Sign of the Year ” (年度金字招牌 ) for three consecutive years
SF Supply Chain was awarded the title of “China’s Top Employers in ” by the Top Employers Institute
SF Supply Chain won the third place in the “China’s Top 40 Supply Chain Logistics” issued by Log Research
SF Supply Chain won “Best Logistics Service Provider – Warehousing” at the AFLAS Asia Freight Logistics and Supply Chain Awards
SF Cold Chain was on the top of the List of 2020 China’s Top 100 Cold-Chain Logistics Enterprises for three consecutive years
SF Technology was awarded the Global Top 10 Enterprises in Commercial Track in the second BPAA Applied Algorithm Practice Model (a
major brand event of the World Artificial Intelligence Conference)
SF Technology won the Annual Best Big Data Intelligent Application Award at the 8th WRE Retail Digital Transformation Summit in
SF Technology was awarded the Top 100 Industrial Blockchain Enterprises in China
007Foreword to the Report
Highlights of Annual Performance
Governance performance
This year the signing rate of the Letter of Commitment to There were no lawsuits related to improper
Anti-corruption among SF employees was 94.6% competition and anti-monopoly or
privacy leakage of anonymous whistleblowers
increasing by 1.7% over 2021 among which throughout the year.the signing rate of third-tier managers reached 96.5%.This year the Company held a total of 24 weekly meetings on risk control
at which 56 resolutions were made. Four meetings and five resolutions were related to ESG issues
covering personnel safety work safety and other ESG issues.Environmental performance
Achievement of carbon targets Green industrial park
Greenhouse gas (GHG) emission intensity of this year SF has developed photovoltaic (PV) power generation projects in
was 47.6t CO2e/RMB million revenue 2.1% 9 industrial parks in Yiwu Hefei Hong Kong and etc.lower than that in 2021. The carbon footprint Renewable energy generation for the year was
per shipment was 824.5g CO2e/piece 9843000 KWH and GHG emissions
4.2% lower than that of 2021. were reduced by 6792 tons.
Green transportation
In SF added 4911 new-energy powered vehicles. By the end of more than 26000 new-energy
powered vehicles had been put into use cumulatively.In SF saved 1234 tons of jet fuel through straight route selection and about 707 tons of
jet fuel through redispatch1.In 304000 tons of GHG emissions have been reduced through green transportation initiatives.
1 Redispatch: While ensuring the safe and normal operation of the flight the international aviation fuel policies should be reasonably applied to reduce aircraft refueling and
lower fuel consumption by implementing a second dispatch for the flight.
008Foreword to the Report
Environmental Management
SF Forest System certification
In SF volunteers planted 214 acres of carbon-neutral forest SF has obtained the ISO14001 Environmental
in Shijiazhuang Hebei Province with 33628 platycladus orientalis Management System certication in several business
mountain peach and mountain apricot saplings. By the end of modules including express delivery pharmaceutical
a total of 50828 carbon-neutral forest trees of 369.7 acres transportation and supply chain and SF
have been planted which can absorb at least 2430 tons of Airlines has obtained the ISO50001
carbon dioxide from the atmosphere in the future. Energy Management System certication.Green packaging
SF actively practices packaging reduction reuse recycling and degradation.In the use of base paper was reduced by approximately 47000 tons and the use of plastics was reduced by approximately
150000 tons through lightweight reduced packaging use and other green packaging technologies.
The fully degradable packing bags named “Feng Bag” independently developed by SF have a biodegradation rate of more than 90%.This year more than 62.51 million bags have been used in Beijing Guangzhou and other places.In GHG emissions were reduced by 506000 tons through green packaging.Social performance
Equality and diversity Democratic management
In 14.7% of our workforce was female. SF has 130 labor union organizations.In SF provided more than 9400 In the resolution rate of labor union jobs for veterans
130% appeals was 97.1% and the satisfaction increasing by over 2021 and provided jobs
200 rating of labor union was 91.9.for people with disabilities The coverage rate of collective bargaining
increasing by 52% over 2021. agreements for the year was 49%.
009Foreword to the Report
Public service and charity
In the total annual public service expenditure of the SF Foundation was
RMB 117.4 million.
22 volunteer associations organized 148 public service activities in total
involving 7226 people and 1206286 hours of volunteer service.Rural revitalization
SF’s service network for facilitating upward movement of agricultural products has covered
more than 2800 county-level cities across the country serving a total of
over 4000 fresh varieties. In SF delivered 3.62 million tons of
special agricultural products helping local farmers to generate revenue of more than RMB100 billion.Service performance
37050 The total amount of ResearchIn a total of consumer complaints2 were accepted and Development (R&D)
investment was
of which 351 were valid complaints with the effective complaint rate3 of
RMB3.53 billion
0.03 PPM4 and the complaint processing rate of 100%. in .
By the end of SF had 4452 granted patents and patent applications and 2490
software copyrights among which the number of invention patents accounted for 64% of the total number of
patents. The number of new patents this year was 221.
2 Data source: Post Industry Consumer Service Platform
3 Effective complaint rate=consumer’s effective complaints/total complaints*100%
4 PPM: Part Per Million
010Foreword to the Report
Sustainability Management
SF is committed to the integration and unity of enterprise value and social value to promote the sustainable development of the
industry and actively exploring the path for corporate sustainable development.ESG Governance System
SF has continuously improved its ESG governance by establishing a four-level sustainability management framework and laid a solid foundation for
formulation regular assessment and risk management of sustainable development goals and strategies. In the Strategy Committee of the
Board of Directors added the sustainability oversight responsibility to oversee and manage the Company’s sustainability matters elevating ESG-related
management to the corporate governance.Board of Directors
Salary and assessment Strategy committee Nominating Risk managementAudit committee
committee Added the sustainability oversight committee committee
responsibility to oversee
Strategy Committee of Strategy Committee: Determine the strategic objectives strategies and focuses
the Board of Directors relevant to sustainability supervise and guide the implementation of ESG work and
ensure that ESG governance is integrated into the Company’s strategic development.Decision- Supervision & Periodic
guidance reporting
making
Sustainability Leadership Group: Composed of the Chief Strategy Officer (CSO)
supervision Sustainability Leadership Group Chief Financial Officer (CFO) Chief Operating Officer (COO) and Chief Human
Resources Officer (CHO) the Group is responsible for setting sustainability goals in line
with the Company’s sustainability strategies and development situations and
reviewing the progress regularly.Overall Daily
planning reporting
Sustainable Development Sustainable Development Working Group: Composed of representatives of the
Daily Working Group Office of the Board of Directors various functional departments BGs (Business Group)
and BUs (Business Unit) related to sustainable development the Group is responsible
management for the overall implementation and promotion of ESG-related work accelerating the
implementation of the Group’s goals in each business unit and functional system and
gradually promoting the normalization of sustainable development governance.Coordination in Daily
implementation & reporting
promotion
Business and Functional Business and functional departments: Implement ESG-related specific work in
Implementation Departments accordance with the established management indicators and mechanisms and
regularly report to the Sustainable Development Working Group.
011Foreword to the Report
Communication with Stakeholders
SF attaches great importance to the communication with stakeholders. and has established diverse and efficient communication channels catering
for nine types of stakeholders namely the government and regulatory bodies investors employees customers and value chain partners etc. to
efficiently ensure the right to know of all stakeholders. In the meantime the Company also fully considers the concerns of stakeholders by integrating
the expectations and demands of stakeholders into our strategy and operational management and regularly reviews the materiality of various issues
to the Company’s operation and development.Stakeholders Main Concerns Forms of Communication Response Measures
Observing disciplines and laws Information disclosure Operating in compliance with laws
Paying taxes in accordance Special report Preventing major safety accidents
with laws Statistical statement Increasing local employment rate
Supporting local economic Promoting actively industrial poverty alleviation
Government and development
regulatory bodies
High economic value creation Information disclosure Establishing and improving the scientific
Corporate governance Shareholders’ general meeting decision-making and supervision mechanism
Compliance and risk management Roadshow Strengthening risk management
Responsibility management On-site inspection Disclosing information properly
Organizing and participating in activities targeting
Investors different types of shareholders
Corporate governance Regular board meetings Periodic report
Compliance risk Operating in compliance with laws and regulations
Sustainable Operations Strengthening risk management
Directors supervisors and
senior management
Diversity and human rights Staff congress Protecting employees’ rights according to the law
protection Forespace (Fengsheng) platform Providing training
Employee engagement Employee satisfaction surveys Improving the talent promotion and salary system
Employee care Discussion communication and mechanism
Training and development other activities Strengthening occupational health and safety
Occupational health and safety management
Employees management
Promoting diverse employee benefits
Charity and volunteering services Communication mechanism Carrying out various charity activities
Helping community development building Intensifying industrial poverty alleviation
On-site investigation Encouraging employees to take part in
Volunteer communication voluntary services
Community residents/
charitable organizations
Optimizing products and services Customer satisfaction surveys on Providing efficient reliable and fast logistics services
Safe delivery and transportation express services Enhancing the customer claim settlement process
Data security Establishing customer Building a safe ecosystem
Protecting privacy communication and
complaint channels
Customers
Sustainable supply chain Contract signing Promoting transparent procurement
Fair just and open procurement Providing training to suppliers Eliminating commercial bribery
Value chain partners
Strengthening exchanges and Convening summit activities Participating in industry activities
cooperation Organizing technical exchanges Participating in the development of industrial
Industrial standard development standard
Industry association
Information transparency Information disclosure Active communication through websites and other
Interaction with the media Building a communication official platforms
mechanism Providing external publicity materials
Media/the public
012Foreword to the Report
Determination of Materiality Issues
SF keeps an eye out for the sustainability dynamics and trends of the industry and conducts regular assessments of materiality on sustainable issues
to ensure that they are highly relevant to the industry. The Company has summarized updated and concluded the importance of the sustainability
issues of SF in the year based on the analysis of the materiality issues of the previous year by referring to the sustainable development issues of
outstanding peer companies both domestically and internationally and combining the concerns of the capital market and other related parties on the
sustainable development of SF. The materiality assessment report for has been submitted to and confirmed by the Board of Directors.SF ESG Issues Materiality Issues
Stakeholders Main Concerns Forms of Communication Response Measures
Observing disciplines and laws Information disclosure Operating in compliance with laws SF Paying taxes in accordance Special report Preventing major safety accidents ESG Issues
Increasing local employment rate Materiality Materiality Issueswith laws Statistical statement
Supporting local economic Promoting actively industrial poverty alleviation Issues No.Government and development
regulatory bodies 1 Product and service optimization
High economic value creation Information disclosure Establishing and improving the scientific
Corporate governance Shareholders’ general meeting decision-making and supervision mechanism 2 Bearing social responsibility
Compliance and risk management Roadshow Strengthening risk management
Responsibility management On-site inspection Disclosing information properly 3 Building a green and smart industry chain
Organizing and participating in activities targeting
Investors different types of shareholders
4 Promoting green packaging
Corporate governance Regular board meetings Periodic report
Compliance risk Operating in compliance with laws and regulations 5 Corporate governance management
Sustainable Operations Strengthening risk management
Directors supervisors and
senior management 6 Caring about employees
Diversity and human rights Staff congress Protecting employees’ rights according to the law
protection Providing training 7 Employee training and developmentForespace (Fengsheng) platform
Employee engagement Employee satisfaction surveys Improving the talent promotion and salary system
Employee care Discussion communication and mechanism 8 Charity and volunteering service
Training and development other activities Strengthening occupational health and safety
Occupational health and safety management
management Promoting diverse employee benefits 9 Occupational health and safety managementEmployees
10 Continuing to obtain economic benefits
Charity and volunteering services Communication mechanism Carrying out various charity activities 11 Securing safety delivery and transportation
Helping community development building Intensifying industrial poverty alleviation
On-site investigation Encouraging employees to take part in
Volunteer communication voluntary services 12 Improving energy efficiency and tackling climate change
Community residents/
charitable organizations 13 Employee diversity and human rights protection
Optimizing products and services Customer satisfaction surveys on Providing efficient reliable and fast logistics services 14 Pollutant discharge and environmental protection management
Safe delivery and transportation express services Enhancing the customer claim settlement process
Data security Establishing customer Building a safe ecosystem 15 Focus on employee engagement
Protecting privacy communication and
complaint channels
Customers 16 Compliance and risk management
17 Anti-corruption
Sustainable supply chain Contract signing Promoting transparent procurement
Fair just and open procurement Providing training to suppliers Eliminating commercial bribery
18 Waste management and recycling
Value chain partners
19 Promoting environmental protection activities
20 Water use management
Strengthening exchanges and Convening summit activities Participating in industry activities
cooperation Organizing technical exchanges Participating in the development of industrial
Industrial standard development standard 21 Data security and privacy protection
Industry association
22 Labor union management and development
Information transparency Information disclosure Active communication through websites and other
Interaction with the media Building a communication official platforms 23 Promoting local communities’ development
mechanism Providing external publicity materials
Media/the public
013Foreword to the Report
Annual Progress on UN Sustainable Development Goals
Core goals
SF offers tuition subsidies to employees for supporting education programs and skill
Goal 4: Quality education certifications. SF also sets up scholarships for students in need to help employees and
vulnerable groups acquire high-quality educational resources.SF offers suitable job and internship opportunities for veterans people with
Goal 8: D ecent work and economic disabilities and college students to ensure the decent employment and career
growth development of special groups.SF has developed a series of recyclable express containers including π-Box constructed
Goal 11: S ustainable cities and a recycling operation platform for data management and actively cooperated with
communities related parties to build an express packages recycling ecosystem and promote the
realization of “zero-waste city”.SF reduces energy consumption in all aspects of express parcel transportation and
Goal 13: Climate action increases the number of new energy vehicles through self-purchase leasing and
outsourcing heading into the goals of “green operation” and “carbon neutrality”.Direct goals
SF has set up a company-wide health and safety target a safety management system
Goal 3: G ood health and and ISO45001 certification. Meanwhile SF has formulated measures of transportation
well-being transfer and warehousing to ensure the health and safety of our employees.SF strictly adheres to the principle of gender equality and prohibits all forms of
Goal 5: Gender equality discrimination. The Company continues to increase the number of female employees
and provides exclusive welfare and care for female employees.SF has developed photovoltaic power generation projects in the 9 industrial parks in
Goal 7: A ffordable and clean Yiwu Hefei and Hong Kong etc. SF has also purchased many new-energy powered
energy vehicles and charging pile equipment to build a clean energy fleet.Goal 9: I ndustry innovation and SF adheres to innovation and develops new products for pickup transit transportation
infrastructure and delivery to create intelligent logistics and empower the industry with intelligence.SF actively carries out rural revitalization to help poverty-stricken areas increase
Goal 10: Reduced inequalities employment opportunities facilitate regional economic development and reduce
inequalities among regions.Targeting at sustainable and intelligent product development SF actively promotes
green and recyclable packaging in logistics and has constructed a recycling operation
Goal 12: R esponsible consumption platform for data management and actively cooperated with related parties to buildand production an express packages recycling ecosystem and promote the realization of “zero-wastecity”.
014GOVERNANCE
Stay True to Original Mission and
Write a New Chapter of Development
Standardizing Corporate Governance
Strengthening Risk Control Management
Abiding by Business Ethics
Data Security GovernanceGovernance
Stay True to Original Mission and
Theme Write a New Chapter of Development
is a critical year to proceed with the 14th Five-Year Plan and also the beginning of a new journey to build China into a
modern socialist country on all fronts. SF has always kept in mind the CPC’s glorious centennial development learnt from and
carried forward the great spirit of the CPC forged in its long-term endeavors. Also SF stays true to its mission and forges ahead in
a bid to gain new accomplishment in the new era and new journey.Strengthen Political Leadership
Adhere to the Integration of Party Building
Under the guidance of the superior Party Committee SF’s Party Committee carefully studied and arranged the integration of Party building into
all aspects of corporate governance and achieved institutional standard and programmatic integration between Party building and corporate
governance ensuring the correct development direction of the Company as it promotes the constant optimization of corporate governance. The
Company implements the leadership system of “two-way entry and cross-appointment” for the Party Committee team to enhance the ability of
the Company’s Party Committee to steer plan and coordinate and thereby strengthen the responsibility of the Party organization in the execution
supervision and implementation of corporate governance.Deepen the Party Knowledge Education
Guided by the thought on socialism with Chinese characteristics for a new era SF has organized and carried out a series of theoretical study activities
and constantly deepened education on Party knowledge. On October 16 the 20th National Congress of the Communist Party of China opened
successfully and the Party Committee of the Group organized Party members to watch the live broadcast of the opening ceremony in online and
offline ways and carefully listened to and studied the report of the 20th CPC National Congress. In the meantime in order to further study publicize
and implement the strategies of the 20th CPC National Congress SF gave full play to the Party branch as strongholds organized offline special
seminars and called on Party members to strengthen the study of the Party Constitution. By making full use of online platforms such as Xuexi.cn (学
习强国) Shenzhen Smart Party Building (深圳智慧党建) WeChat official account and other online platforms to widely publicize the report of the 20th
CPC National Congress the Company created a positive learning atmosphere throughout the Company.Watching the 20th CPC National Congress Participating in the 20th CPC National Congress Special Seminar
016Governance
Build a Solid Organizational Foundation
Foster Infrastructure Construction of Party Branches
SF has selected Party members with excellent political accomplishments and strong professional ability as Party branch secretary continued to intensify
the construction of branches and completed the intensive leadership changes of 62 Party branches in . The Company flexibly set up Party groups
optimized the setting of primary Party organizations founded regional association of Party branches and set up a total of 70 new Party groups in
. SF also strengthened the guidance of Party building work in all branches of the network and increased the coverage of Party organizations.
Strengthen the Management of Party Members
SF conscientiously implements the “Three Sessions and One Lesson” system positively advances the ideological construction of Party members
diversifies and innovates the education forms. Through the application of Shenzhen smart Party building system The Company organizes Party
members to participate in special examinations subscribes to Party building books and also releases the Group’s Party building dynamics and Party
building study content through the Internet Party member WeChat group SF Party Committee WeChat official account (Xianfeng team) Forespace
(Fengsheng) and other online platforms and SF vigorously increase the coverage of Party members’ learning activities. SF has also carry out trainings
for Party member development targets to control the quality of Party member development.Optimize the Party Building Position
On the basis of the Group’s original Party and mass service center and Nanshan Futian Xixiang and Tianbei Party and mass service stations the
Company has newly built 7 Party and mass service stations namely the Qianhai Guanlan Tiejia Ailian Pingshan Dapeng Haipeng stations etc.set up a Party building book bar at each service station to provide thoughtful services such as power charging resting and learning for couriers and
provide more than 600 books on Party history express delivery industry psychology etc.Consolidate Education Results
The Company widely publicizes the typical stories of the award-winning Party members who participated in the appraisal and evaluation of excellence
to highlight the influence of role models and celebrate the successful inauguration of the 20th CPC National Congress. At the same time the
Company continues to consolidate and deepen the achievements of the themed education of “staying true to the original aspiration and mission”
carry out in-depth Party history study and education and ensure the normalization and long-term effectiveness of theme education.Party History Knowledge Competition of “Learning Party History Themed Activity to Celebrate the 101st Anniversary of the Founding ofHeading Toward the Future” the CPC and the “July 1st” Commendation Conference
017Governance
Standardizing Corporate Governance
In strict compliance with the Company Law of the People’s Republic of China the Securities Law of the People’s Republic of
China the Code of Corporate Governance for Listed Companies the Rules Governing the Listing of Stocks on the Shenzhen Stock
Exchange and other relevant laws and regulations promulgated by the China Securities Regulatory Commission and the Shenzhen
Stock Exchange SF has formulated the Articles of Association Rules of Procedure for General Meeting Rules of Procedure for
Board of Directors and Rules of Procedure for Supervisory Committee and other internal control rules and regulations to improve
the internal corporate governance structure and the internal management system and regulate the conduct of the Company.Sound Governance System
The Company has clearly defined the responsibilities and authorities of decision-making execution and supervision established a corporate
governance structure composed of the shareholders’ general meeting Board of Directors and Supervisory Committee and formed an effective division
of labor and restraint mechanism with clear rights and responsibilities and standardized operation.General meeting of
shareholders
Office of the Board Board of Supervisory
of Directors Directors Committee
Strategy Remuneration and Risk Management Nomination Audit Committee
Committee Appraisal Committee Committee Committee
SF Governance Structure
Information about General Meetings of Shareholders
The Company convenes and holds general meetings of shareholders in strict compliance with relevant laws and regulations treats all investors equally
engages lawyers to attend the general meeting as observers and issue legal opinions on the holding and voting procedures of the general meeting
and gives full respect to and protects the legitimate rights and interests of all shareholders. The Company’s controlling shareholder strictly regulates
its behaviors exercises the shareholder’s rights through the general meeting and does not interfere with the Company’s management or decision
making directly or indirectly bypassing the general meeting and the Board. In SF held 4 general meetings.
018Governance
Information about Board Meetings
The Company elects director candidates in strict accordance with relevant laws and regulations. In the Company completed the general election
of the Board of Directors and the new Board of Directors comprises 7 directors of which 3 are independent directors and 4 are non-independent
directors. In the Company held a total of 11 board meetings to study and make decisions on major matters such as daily related party
transactions equity incentives external guarantees and share repurchases giving full play to the decision-making and guiding role of the Board of
Directors. The board meeting strictly followed the requirements of the Company Law the Articles of Association and the relevant laws and regulations
of the China Securities Regulatory Commission and the Shenzhen Stock Exchange meticulously conformed to the relevant procedures of the meetings
and made timely disclosure of information after the meetings.The Board of Directors has established five special committees namely the Audit committee the Remuneration and Appraisal Committee the Strategy
Committee the Nomination Committee and the Risk Management Committee. In SF held a total of 12 meetings of special committees.All directors diligently fulfilled their duties with a serious and responsible attitude. The independent directors performed their responsibilities
independently protected the interests of the Company as a whole and expressed independent opinions on important and major issues.Performance of Duties by Special Committees of SF’s Board of Directors in Supervise the implementation of the Board’s major financial statements and other decisions to
Strategy Committee
ensure the effective implementation of the Board’s resolutions.Remuneration and Appraisal Ensure that the Company’s remuneration system serves the Company’s business strategy and is
Committee subject to constant adjustment to support the Company’s further development.Guide the Company’s overall risk management work evaluate the perfection of the risk
Risk Management Committee management system and issue opinions and provide support for the Board of Directors to perform
risk management functions.Provide professional recommendations on the candidates selection criteria and selection
Nomination Committee procedures for directors general managers and other senior management appointment of the
Company.Give full play to the role of audit supervision review audit work reports every quarter and put
forward guidance and suggestions promote the establishment and improvement of the Company’s
Audit Committee
internal control standardize the Company’s business behaviors optimize business management
and evade business risks.Information about the Meetings of Supervisory Committee
The Company elects supervisor candidates in strict accordance with relevant laws and regulations. SF’s Supervisory Committee comprises 5 supervisors
of which 2 are employee representative supervisors and 3 are non-employee representative supervisors. The number of supervisors and composition of
the supervisory committee are in line with the requirements of laws and regulations. The Supervisory Committee of the Company convenes and holds
the meeting of supervisory committee in accordance with relevant regulations. In SF held a total of 9 meetings of supervisory committee. All
supervisors seriously attended the meetings of supervisory committee diligently fulfilled their duties and supervised and expressed their opinions on
the major issues related party transactions financial conditions etc. of the Company.Compliant Information Disclosure
SF continues to strengthen information disclosure management honestly fulfill information disclosure obligations and strictly follow the provisions
and requirements on information disclosure of the China Securities Regulatory Commission and Shenzhen Stock Exchange as well as the relevant
provisions of the Company’s Information Disclosure Management System. The Company further intensifies the collection feedback collation and
review of major information and ensures the truthfulness accuracy completeness and timeliness of the disclosed information.
019Governance
Strengthening Risk Control Management
SF has established a sound internal control and risk management system to strengthen and standardize the Company’s internal
management constantly improves the Company’s risk prevention and control effects and promotes the sustainable and healthy
development of the Company. The Company identifies and evaluates the ESG risks in company operation and development clarifies
the response strategies for such risks and effectively reduces business risks.Risk Management System
In accordance with the Basic Standards for Enterprise Internal Control the SZSE No. 1 Self-discipline Supervision Guidelines for Listed Companies –
Standardized Operation of Main Board Listed Companies and other laws and regulations and with reference to the Enterprise Risk Management
Framework and Articles of Association the Company has formulated the Management System of Risk Control of SF Group and the Crisis Management
System of SF Group to ensure the effective identification and monitoring of risks. In the Company revised the Management System of Company
Risk Control of SF Group the Crisis Management System of SF Group the Operation Rules of the Risk Committee and other systems and constantly
optimized the risk management system.SF has established a risk management structure led by the Risk Management Committee of the Board of Directors. The Risk Committee under the Risk
Management Committee of the Board of Directors is a professional body for the overall management and control of Group risks mainly responsible
for deliberation and decision-making of the Group’s risk management system policies major risk prevention and major crisis responses. The Risk
Committee reports to the Risk Management Committee of the Board quarterly and annually.The Company’s Chief Financial Officer (CFO) is responsible for implementing the Group’s risk management strategy guiding and evaluating the
establishment and improvement of risk management and control mechanisms in functional departments BGs (Business Groups) BUs (Business Units)
and districts. The Group’s Risk Control Compliance Section coordinates risk control and compliance work. The leader of each functional department
BG BU and region is responsible for related risk control in their work area and introducing risk management measures and implementation rules.They are also responsible for identifying and evaluating of daily risks as well as the implementation of management and control measures.Risk Management Committee Strategy Formulation
Organization:
Strategy Formulation
Risk Committee (CFO) and Guidance
Overall Management
Group’s Risk Control and Organization:
Compliance Office System Optimization
and Control
Unified administration Report
Unified operation Feedback
Assessment Optimization
Implementation
Group functions BGs/BUs organization:
and subsidiaries etc. Routine management
and execution
SF Risk Management Organizational Structure
020Governance
Risk Event Response
For risk events SF takes a three-stage approach of “responding→review→precipitation” to realize the closed-loop risk management. During the
“in-process” stage SF coordinates multiple functional departments to make effective responses reduces negative impacts and maintains brand
image. While in the “post-event” stage SF works with multiple relevant regions and organizations to conduct comprehensive review and inspection
traces back to the root cause and improves control measures accordingly. Based on risk event management in the Company has prepared 10
management and control plans and optimized 20 risk control matters.Digital Risk Management
The Company has built a risk management system and an internal control and compliance platform and carried out the development of the
compliance management system. Through continuous iteration and optimization of the systems SF realizes digital management of the whole chain
from risk identification assessment monitoring early warning response to loop closing effectively improving the efficiency of risk identification and
management.Risk Management System
Mainly responsible for monitoring the risk management and control of priority areas of
the Group and managing risk events.Internal Control and Compliance Platform
Mainly responsible for regular internal control inspection of the Company’s business
processes and supervising rectification.Compliance Management System
Mainly responsible for the intelligent capture and analysis of external regulation requirements
and public opinion information and monitoring the quality of internal implementation of
external regulations.In SF carried out functional reconstruction of the Group’s risk management system and completed the optimization and launch of the risk
event management module which can cover risk event management scenarios from districts to headquarters and cross-functional units encompassing
features such as event reporting determination of treatment plans event review rectification and optimization. SF has completed the functional
design for the Group’s compliance management system and the system development is expected to complete by 2023.ESG Risk Management
SF fully integrates environmental social and governance risks in the identifying and sorting of risk information databases as well as the classification
of level 1 2 3 and 4 risks. At present the identified ESG risks include a total of 15 level 2 risks such as natural disaster risks intellectual property
risks fraud risks production safety risks and human resource management risks and level 4 risks such as carbon neutrality risks and extreme weather
operation risks covering multiple aspects of the ESG field. The ESG risk management structure is consistent with SF’s risk management organizational
structure and the Risk Management Committee of the Board of Directors functions as the highest risk management body is responsible for the
identification prevention and control of ESG risks. In the Company held 24 risk control weekly meetings generating a total of 56 resolutions
of which 4 meetings and 5 resolutions involved ESG-related issues. (For the governance response measures and goals of climate change risks please
refer to the “Tackling Climate Change” section).Risk Management Training
SF continues to carry out diversified risk training and empowerment courses raising employees’ risk awareness through online learning and
examination etc. In the Company has opened a total of 12 special courses in the headquarters involving Special Training on Business Risk
Control Verification Training on Recent Major Risks Training on New Functions of Business Risk Control System and other contents and 10 risk
control master courses in districts involving Construction of Regional Business Risk Control System Risk Control and Audit on Illegal Weighing etc.A total of 89800 hours of risk-specific training courses were delivered throughout the year and the coverage rate of new employees for risk-specific
training reached 100%.
021Governance
Abiding by Business Ethics
SF adheres to compliance management and attaches importance to business ethics management. The Company has established
a management mechanism led by the Audit Committee of the Board of Directors and the Chief Audit Executive (CAE) manages
Company’s business ethics affairs and regularly reports to the Audit Committee. The Company created the 369 Code of Conduct
for primary-level managers. It eliminates three violations of business ethics requires six affairs to be made public and establishes
nine guidelines for managers to lead by example in business ethics management. During the Reporting Period SF had no legal
action in respect of improper competition and anti-monopoly.Integrity Management System
To ensure the effectiveness of the integrity management system SF will analyze the causes of corruption incidents annually to confirm whether there
are any defects in procedures and systems. The Company also iterates the system when necessary. In the Company amended the Administrative
Measures for Relatives Avoiding applicable to the entire group detailing the definition of individual and relative competition in bidding the
circumstances of relative appointment restriction as well as the mechanism for relative declaration and handling mechanisms. It has also updated the
content of the Letter of Commitment to Anti-corruption and the Integrity Agreement to further improve the integrity management system.The Company has established a defensive line for integrity supervision from the Audit Committee of the Board of Directors the regulatory department
of the headquarters to the business areas/branch offices. It also has built three lines of defense simultaneously in business areas/branch offices
to realize the integrity management system across all networks and posts of management. In addition to the two-level three defensive lines the
Company has also set up the Senior Management Disciplinary Inspection Committee led by Company’s Chief Executive Officer (CEO) Chief Human
Resources Officer (CHO) and Chief Audit Executive (CAE) along with the Employee Disciplinary Inspection Committee. These committees are
responsible for managing the integrity of senior management and other employees respectively.Business owners/outlets
Group audit
Headquarters supervision departments of segments
Legal/compliance/internal control/risk control etc.Business
Business areas/branches areas/branches
Three
defensive
lines Employee Relationship Risk Control Group of
Group of Human Operation and
Resources Department Management Department
SF’s Defensive Lines for Integrity Supervision
022GovernanceIn order to create a fair just and open working atmosphere SF has also developed an anti-corruption system of “no courage no ability and nointention” to strictly prevent and sternly punish illegal and corrupt behaviors such as bribery acceptance of bribery embezzlement and fraud.Create a “no courage Create a “no ability Lay a solid foundation forto be corrupt” work to be corrupt” governance “no intention to be corrupt”
atmosphere environment ideology
Active anti-fraud; Organization governance; Signing of commitment;
Professional investigation Systems and standards; Propaganda and education;
and treatment;
Strict accountability system Democratic supervision Special learning;
Organization atmosphere
SF’s “No Courage No Ability and No Intention” System for Anti-corruption
In SF actively carried out digital proactive anti-fraud exploration. Through a series of anti-fraud rectification projects SF has promptly reported
the risks of specific business scenarios to the competent authorities and urged them to make improvement accordingly. At the same time the
Company has also established an anti-fraud related audit model to regularly monitor business ethics risks.Anti-corruption Education
SF has formulated the Employee Handbook and Integrity Handbook and provides the English version of the Employee Handbook for overseas
employees clarifying the Company’s definition of internal and external integrity behaviors determining violations and corresponding penalties
providing a clear and reliable code of conduct for all employees in an effort to standardize employee behaviors and advocate honest practice.The Company continues to carry out integrity culture publicity and education and communicates the Company’s anti-corruption system and measures
to employees in forms of system interpretation integrity briefing anti-corruption announcement etc. For grassroots employees and management
of business areas the Company has carried out positive publicity on integrity culture and anti-fraud case warnings through online cases and offline
training. As for new employees the Company conducts anti-corruption induction training and encourages them to sign the Letter of Commitment to
Anti-corruption. In the signing rate of the Letter of Commitment to Anti-corruption was 94.6% representing an increase of 1.7% compared
with 2021 among which the signing rate of third-tier managers reached 96.5%.In addition the Company also energetically promotes suppliers to sign the Integrity Agreement and work with suppliers to build a clean value chain.In the suppliers’ signing rate of the Integrity Agreement reached 100%.In SF arranged the integrity index survey and special training on combating corruption and promoting integrity and organized all employees to
learn regulations to ensure them know and abide by regulations. A total of 20 offline anti-corruption training sessions were conducted throughout
the year with a total of 21300 hours of anti-corruption education for employees.
023Governance
System interpretation
Warnings
Red lines under rules;
Reporting channels; Warning of
Reward mechanism; judicial case of fraud
Situational guidance
Propaganda and prompts Integrity briefing
Positive guidance; Monthly disclosure;
Commendation of Hot issues and concerns
examples
Exposure bulletin Anti-corruption
announcement
Early warning for
Illegal fraud;
disclosure of violation of Anti-corruption
Propaganda Annual announcementrules or disciplines
SF’s Anti-corruption Propaganda and Education
Letter of Commitment to Anti-Corr uption including but not limited to:
* I will refuse to engage in any bribery acceptance of bribery embezzlement or other improper business activities during my
employment.* I will refuse to engage in any behavior that conflicts with the Company’s interest during employment unless the Company’s
written intention is obtained in advance.* During employment if any unit or individual related to the Company’s business provides or requests any gifts to anyone I
will refuse it on the spot and promptly report to the Company.Whistleblowing Management
SF has set up the Reporting Management Measures and the Employee Communication Management Regulations to standardize the handling process
standards and management requirements for reporting violations of rules and disciplines which optimizes the Company’s supervision system prevents
and corrects violations of rules and disciplines protects the legitimate rights and interests of employees customers and partners and promotes the
sustainable and healthy operation and development of the Company. In the Company further revised the Reporting Management Measures
optimized the reporting channels case filing standards whistleblowing investigation process etc. and further clarified the whistleblowing follow-up
limitation requirements.Reporting Channels
SF has set up six reporting channels for different groups including mailboxes hotlines and official websites etc.Reporting channels Target group
Reporting email sf5198@sf-express.com
Labor union hotline 4006883783
All internal staff and external
stakeholders
SF official website About us – I want to report
Mailing Audit Department of SF Headquarters (Receipt)
Forespace APP Service – I want to report
All internal staff
Monitoring system Regional complaint management platform
024Governance
Timeliness of HandlingIn terms of the timeliness of incident handling the Company requires the competent departments to follow up in accordance with the “TripleOnes”(“三个一”) timeliness requirements to make quick and positive responses. In the follow-up and response rate in connection with effective
reporting of SF was 100% and its timeliness achievement rate of “Triple Ones” in handling complaints was 96%.“Triple Ones” Requirements:
Respond within one working day: Respond to the whistleblower within one working day after receiving the report;
Confirm whether to initiate an investigation within one week: upon the receipt of report confirm whether the case needs to be
filed for investigation within one week;
Complete the investigation within one month: After confirming the filing of the case complete the report investigation and result
feedback within one month.Whistleblower Protection
SF’s Reporting Management Measures clearly stipulates the confidentiality requirements for the information of the whistleblower namely any
employee who comes into contact with the reported information shall keep the information confidential. The responsible person of each organization
is the first person responsible for the protection of witnesses (including whistleblower) and shall take reasonable measures to protect witnesses
(including whistleblower) ensure that the basic rights and interests of witnesses (including whistleblower) are not infringed and stamp out any form
of retaliation. In SF had no anonymous whistleblower whose privacy was disclosed.Reporting Management Measures – confidentiality requirements of whistleblower information
Including but not limited to the following:
(1) All persons who receive the reported information shall transfer it to the competent department and shall not forward it to other
personnel without permission.
(2) Relevant personnel who follow up on the report shall not disclose the reported information to other personnel.
(3) Before the assessment of punishment opinions is made public the results of the investigation and the handling opinions shall not
be disclosed in advance.
(4) Investigation reports and evidence materials shall not be forwarded to other personnel without permission.
025Governance
Intellectual Property Protection
SF puts a premium on intellectual property protection and strictly complies with the Patent Law of the PRC and the Trademark Law of the PRC.The Company has formulated internal systems such as the Group Trademark (Trade Name) Management System and the Operation Guidelines for
Handling Group Infringement Incidents and has updated Group Patent (Software Copyright) Management System in to further improve the
management and protection of the Company’s patents and software copyrights.In SF has obtained 221 authorized patents and applied for 446 trademarks and 480 software copyrights covering fields such as intelligent
logistics smart supply chain artificial intelligence and big data safeguarding the Company’s technological innovation. By the end of SF has
been granted 1851 patents 5183 trademarks and 2449 software copyrights.
221446480
newly authorized patents new trademark new software copyright
applications applications
As of the end of cumulatively
185151832449
authorized patents trademarks software copyrights
026Governance
Data Security Governance
SF always stays alert for information security and network security risks. The Company has formulated its internal system such
as the Emergency Plan for Information Security Incidents of SF Group Regulations on Network Security Incident Management
Administrative Measures for Information Leakage Security Incidents Administrative Measures for Rewards and Penalties for
Information Security and successively updated the Measures for the Management of High-Risk Behaviors in Information Security as
well as the Administrative Measures for Rewards and Penalties for Information Security and constantly optimized the data privacy
and network information security system.SF has established three-tier data privacy and cyber security management schema covering decision-making management and
implementation. The technical committee as the ultimate leadership organization is responsible for information security decision-
making appointments and instruction and the CEO serves as its chairman and is the highest responsible person for information
and data security. In the Company refined its risk resolution process and included significant data privacy and cyber security
risks into the resolution scope of the risk committee.Maintaining Cyber Security
SF has formulated its internal system such as the Emergency Plan for Information Security Incidents of SF Group Regulations on Network Security
Incident Management etc. clarifying the response mechanism and handling measures in the event of cyber security incidents. Through cyber security
programmes such as network security loophole detection and network security practical exercises the Company strives to enhance its security defense
and promote network security.In SF participated in a large-scale hacking and defense drill organized by the Ministry of Public Security of the People’s Republic of China and
stood out with 0 point lost representing its leading position in the industry in terms of cyber security capability.SF Group’s large-scale network hacking and defense drill in 027Governance
Since 2020 SF has set up a professional cyber security blue army carried out internal red-blue confrontation drills from time to time and constantly
spotted its own cyber security defense weaknesses through simulating various external cyber security attack methods. Also it has further reviewed
and improved its system accordingly so as to improve the collaborative combat ability of the security team and safeguard the Company’s operation.In SF carried out a total of 4 red-blue drills.The Company has established a normalized network security training program “543 Security Technology Corner” maintained the constant matching
between personnel capabilities and security situation through customized training courses and advanced SF’s overall awareness of network security.In a total of 17 technical trainings were carried out covering over 700 people in aggregate. In addition the Company also launched the “CyberSecurity Awareness Month” special activity and conducted high-frequency publicity for all employees regarding high-frequency and unexpected
security incidents and cases such as workplace security daily office awareness security email phishing and social worker phishing.Information Security Management
SF attaches great importance to information security management and is committed to preventing the occurrence of information security incidents. In
the Company updated the Measures for the Management of High-Risk Behaviors in Information Security as well as the Administrative Measures
for Rewards and Penalties for Information Security clarifying cyber security high-risk behaviors and the corresponding punishment principles on
violations and lifting security awareness of all staff to protect internal information of the Company through the establishment of a special reward and
punishment mechanism.SF continues to carry out data security audits. In the Company carried out internal and external risk assessments of data security in accordance
with the latest regulatory requirements.Graded Protection Evaluation: According to the national and industrial standards and specifications SF carries out inspection and
evaluation on the security compliance of its information systems grasps the security protection situation of its information systems in a
timely manner evaluates the system security protection capability and proposes targeted corrective measures for security problems and
hidden risks.Internal Audit on the Company’s Management System: In SF launched an internal audit on the data security management system
reviewed the management system from three aspects: compliance applicability and adequacy ensured data security and privacy
protection of the Group and promoted the sustainable development of the Group’s data security construction.Security Response Center (SRC): Through SF Security Response Center users were offered rewards for any loopholes identified in
security system and business. By the end of the SRC platform has introduced a total of 2100 external testers.All employees are required to sign the “Employee’s Letter of Commitment for Information Security” with SF to make commitments to information
security and confidentiality regarding internal data customer information and privacy as well as employee personal information. In the meantime
we strengthened the information security education of all employees and raised the information security awareness of all employees through various
forms such as special training and publicity. In SF’s data security education has basically achieved full coverage covering more than 480000
personnel with an accumulated over 9.6 million training hours.In SF led and participated in the formulation of 6 national and industry standards related to data security constantly advancing the
standardization of data security in the industry.Information security/cyber security related standards led or participated in by SF:
National standard Information Security Technology – Data Security Requirements for Express and Logistics Services (GB/T
42013-)
National standard Information Security Technology – Basic Requirements for App Collection of Personal Information (GB/T
41391-)
3 National standard Information Security Technology – Network Data Classification and Grading Requirements
4 National standard Information Security Technology – Security Requirements for Sensitive Personal Information Processing
5 Cyber security Standards Practice Guide – Guidelines for Classification and Grading of Network Data
6 Cyber security Standards Practice Guide – Guidelines for Organizational Data Security Governance Capacity Building
028Technology Empowers Carbon Management
and Accelerates Business Sustainability
Creating Green Logistics
Promoting Circular Economy
Tackling Climate Change
ENVIRONMENTEnvironment
T e c h n o l o g y E m p o w e r s C a r b o n
Theme Management and Accelerates Business
Sustainability
In response to the impact of global climate change SF remains steadfast in leveraging its resource and energy utilization with
technological innovation to reduce carbon emissions in its business processes. In the meantime SF devotes to empowering its
partners by means of technology to drive green transformation upgrade of the industry and put joint efforts to accomplish the
national “Carbon Peaking and Carbon Neutrality” goals. As a pioneer and promoter of carbon neutrality SF has made forward-
looking arrangements in cutting-edge scientific and technological fields such as artificial intelligence big data robotics Internet
of Things logistics maps smart packaging etc. In combination with new energy application SF injects scientific and technological
strength into the packaging life cycle to improve quality and efficiency as well as carbon emission reduction in the whole process
of “pickup transit transportation and delivery”.Green Technology Accelerates the Standardization of
Carbon ManagementAs a pioneer in green and low-carbon transformation in the industry SF has built a digital intelligent carbon management platform – “FengheSustainability Platform” (hereinafter referred to as the “Platform”) which consists of carbon accounting carbon targets carbon asset management
and other parts covering packaging transportation transit delivery and other processes with a total of over 120 indicators in more than 60 typical
scenarios. The Platform can calculate end-to-end carbon emissions of enterprises in real time realizing real-time monitoring of carbon targets
achievement. In Fenghe Sustainability Platform has passed strict assessment of a third-party panel and the GHG inventory function of thePlatform is complied with the internationally accepted GHG verification standards. The four basic functional sections of “identification of emissionsources setting of emission coefficients quantification of GHG emissions and emission reductions” are complete reasonable and accurate. Thus it
can perfectly satisfy the needs of SF’s GHG inventory.Interface of the Fenghe Sustainability Management Platform
030Environment
Digital Intelligent Carbon Platform Supplier Factory
Promotes Sustainability of Supply
Chain
Regional warehouse Central warehouse
Leveraging on the platform-based standard carbon management capabilities SF helps
customers grasp GHG emissions in transportation and logistics-related activities
enhances the transparency of carbon emission data in supply chain logistics and
analyzes and optimizes services with high-emission in a bid to achieve effective
identification and control in the operation process. Coupled with experience in Forward warehouse Customer
advanced logistics technology application the Company is working with a number
of brand customers to reshape the supply chain and create sustainable supply chain
services. For example SF assists customer in carbon emission reduction by taking
carbon emission reduction measures in storage packaging transportation delivery and
Carbon footprint Carbon footprint Carbon footprint of
other services. By providing customized low-carbon supply chain solutions SF quickly of packaging material of electricity transportation
extends its platform capabilities to upstream and downstream partners in the industry Supply Chain Logistics Carbon Footprint Calculation
chain helping customers achieve visible and controllable carbon neutrality effects and
accelerate low-carbon transformation.Case: Customized Green Logistics Solutions to Assist Customers in Delivering Green Value
In order to assist a brand customer in the apparel industry to achieve green transformation SF adopted the carbon emission calculation model of “Fenghe Platform” to
help the customer understand its greenhouse gas emissions during transportation and improve the transparency of carbon emission data. In the meantime SF analyzed
and optimized the high-emission processes based on the carbon accounting results provided the customer with a customized green logistics solution of direct delivery
from warehouse to railway station and helped the customer reduce carbon emissions by by 30.5 tons of carbon dioxide equivalent per month by railway transportation.Empower the Industry and Work Together for a
“Zero-Carbon Future”
In the blueprint to achieve global carbon neutrality building a zero-carbon business society is crucial. In addition to
providing visual and quantifiable low-carbon products and services to help customers demonstrate their commitment to
the environment and create green value SF also shares its carbon management experience with business partners and
participates in the development of carbon emission accounting and carbon asset management standards in the logistics
industry. In SF participated in the compilation of the industry standard of Enterprise Green Logistics Assessment
Indicators providing technical support for assessing the green development level of logistics enterprises helping
promote energy conservation and carbon reduction in the logistics industry advancing the green and low-carbon
development of the logistics industry and working with industry partners to achieve a zero-carbon future.Building green brands and enhancing customer loyalty
Helping customers deliver low-carbon services to the consumer end
raising green awareness among users and strengthening
the inuence of green brands.Helping enterprises improving their ESG rating scores
Extending scientic and technological strength to upstream and downstream
actively creating sustainable supply chain services and working with customers
to accelerate low-carbon transformation.In-depth integration of “logistics + information”
Based on SF’s low-carbon logistics services the Company integrates digital
carbon management to help customers achieve visible and controllable carbon
neutrality effects and reduce regulatory risks.SF’s “Zero-Carbon Future”
031
Together for the goal of
net-zero carbon emission
Value outlookEnvironment
Creating Green Logistics
Guided by the purpose of environmental protection energy saving and emission reduction SF has constantly optimized its
environmental management system and achieved green management covering the whole life cycle of logistics by promoting low-
carbon transportation building green industrial parks practicing sustainable green packaging and applying green technologies. SF
has been building sustainable logistics energetically. In SF reduced the GHG emissions by 1557816.4 tCO2e.Carbon Reduction Direction Measures for Carbon Reduction
Green Land Transportation:
* Optimize the structure of transportation capacity and increase the proportion of new-energy
powered vehicles
* Increase vehicle loading capacity replace high-axle count vehicles with low-axle count and
retire high fuel consumption vehicles
Green Transportation
Green Aviation:
* Increase the proportion of large cargo aircraft with low energy consumption and high efficiency
* Increase the proportion of new-energy powered vehicles in the airbase
* Adopt jet fuel-saving technologies such as straight route selection and redispatch
* Continue to increase the construction of photovoltaic equipment in industrial parks and
PV Power Generation
increase the proportion of clean energy using
Green Packaging * Promote packaging reduction reuse recyclability and degradability
* Reduce transportation energy consumption through intelligent transportation route planning
Application of Green Technology
* Promote electronic proof of delivery (POD) photo uploading and paperless reimbursement
* Create the “SF Carbon-Neutral Forest” to achieve carbon offset
Others * Implement the uniform points redemption mechanism to motivate the courier to reduce the
frequency of uniform replacement and reduce material consumption
Others (Including “SF Carbon-Neutral Forest”)
605
0.04%
Green Transportation Green
304029 Transportation
19.52%
PV Power
PV Power Generation Generation
6792
SF’s GHG emission reduction 0.44% Green Packaging
Application of
Green Technology in (in tCO2e)
739982
47.50% Application of
Green Technology
Green Packaging
506408 Others
32.51%
032Environment
Environmental Management System Certification
SF has established a sound environmental management system and energy management system and will continue to facilitate the completion of
official environmental and energy management system certifications of each business module. As of the end of the Reporting Period the Company’s
main business segments have obtained the ISO 14001 Environmental Management System certification and SF Airlines has obtained the ISO 50001
Energy Management System certification.SF Environmental Management System and Energy Management System Certification
Shenzhen S.F. Taisen Holding (Group) Co. Ltd.S.F. Express Co. Ltd.Guizhou S.F. Express Co. Ltd.Zhejiang Shun Feng Express Co. Ltd.Shenzhen SF Comprehensive Logistics Service Co. Ltd.Shenzhen SF Freight Co. Ltd.ISO 14001 Environmental Management System
GZ SF Pharmaceutical Supply Chain Co. Ltd.SF Multimodal Transportation Co. Ltd.Shenzhen SF International Supply Chain Management Co. Ltd.Shenzhen Fenglang Supply Chain Co. Ltd.Hubei Churongfeng Supply Chain Co. Ltd.Zhejiang Shuangjie Supply Chain Technology Co. Ltd.ISO 50001:2018 Energy Management System
SF Airlines Company Limited
RB/T 104-2013 Energy Management Systems for Transport
Industry Enterprises
Promoting Low-carbon Transportation
In order to reduce the impact on the environment and improve energy efficiency during transportation SF continues to promote green and low-
carbon transformation of the transportation process.Green Land Transportation
Land transportation is the main mode of transportation for SF to provide logistics services. The Company continues to optimize the energy use
structure of its transportation capacity and reduce carbon emission during transportation by increasing the proportion of new-energy powered
vehicles optimizing the model selection of fuel vehicles and controlling vehicle fuel consumption. In addition the Company has also built an energy
management platform to realize the control of energy consumption data optimizes the transportation routes by adopting big data cloud computing
and other technologies and gradually promotes energy conservation and emission reduction in land transportation.
033Environment
Optimizing Structure of Transportation Capacity
SF continues to increase the number of new energy vehicles through self-purchase leasing etc. and keeps expanding the scale of green fleet. In
more than 4900 additional new-energy powered vehicles were put into operation covering scenarios such as ordinary package and bulk cargo
pickup and delivery short-haul trunk and branch lines and feeder transportation in the city. By the end of the Reporting Period SF has put into use
more than 26000 new-energy powered vehicles in 232 cities.
30000
26189
25000
21278
20000
17053
15000
11354
10000
7049
5000
0
2018201920202021Number of SF’s Self-owned and Leased New-energy Powered Vehicles from 2018 to For long-distance transportation and transportation in the cold northern area the Company introduced hydrogen-powered and LNG vehicles as a
pilot program. In a total of 20 hydrogen-powered light duty trucks were put into operation in Shanghai and two LNG tractors were put into
operation in Beijing.SF’s Hydrogen-Powered Light Duty Truck
034Environment
In addition SF is proactively exploring vehicle battery swapping modes and carrying out application research on new energy vehicle battery swapping
models in main and branch line transportation scenarios so as to improve the efficiency of charging and swapping while reducing the number of in-
vehicle batteries and extending the distance to empty (DTE) of vehicles.Monitoring Energy Consumption Data
SF monitors the daily data of new-energy powered vehicles in real-time through the new-energy powered vehicles system management platform and
realizes visual data analysis of vehicle mileage driving duration charging time and distribution of usage and charging periods.In SF initiated the construction of the charging platform system which will marshal and integrate the Company’s and public charging pile
resources in the market and update the distribution information of charging pile resources in real time meeting the needs of new-energy powered
vehicles power charging in a timely and efficient manner. It is expected that the system will be completed and put into operation in 2023.Replacing Fuel Vehicles
SF continues to optimize and replace traditional fuel vehicles enhance energy consumption efficiency and reduce the impact of fuel vehicle emissions
on the environment by increasing vehicle loading capacity replacing high-axle count vehicles with low-axle count load and retiring high fuel
consumption models. In more than 800 fuel vehicles were replaced or decommissioned by the Company.Fuel Vehicle Replacement and Decommissioning Measures in :
1. Replaced and decommissioned models with insufficient capacity and reduced the input of transport capacity by increasing
loading capacity;
2. Replaced high-axle count vehicles and reduced vehicle energy consumption by choosing low-axle count models;
3. Optimized the management of vehicles with high fuel consumption through fuel consumption calibration speed ratio
adjustment etc. and decommissioned models with failure in improvement;
4. Decommissioned vehicles conforming to China’s national III and IV Emissions Standard.
In addition through vehicle energy-saving testing and standardizing supplier cooperation requirements the Company screens out the vehicle models
that fit the business scenarios and with highest cost efficiency realizing centralized management of vehicle brands.Controlling Vehicle Fuel Consumption
SF has formulated the Lump-sum Oil Consumption Plan for Commercial Vehicles to determine fuel consumption standards according to business
scenarios clarify fuel consumption targets and detail fuel consumption reward and punishment rules thus realizing fuel consumption control of
vehicles. Meanwhile the Company regularly conducts training on fuel consumption control energy conservation and emission reduction for drivers in
a bid to improve drivers’ awareness of fuel conservation and reduce the level of fuel consumption of operating vehicles.Optimizing Transportation Routes
SF’s smart map enables transportation route planning to reduce energy consumption in process. It combines with factors such as the time limit
requirements and distance of packages and adopts intelligence algorithm to provide optimal route planning solutions. Simultaneously by virtue of big
data analysis and deep learning technology SF integrates freight route and transport resources to improve land transportation efficiency and achieves
accurate matching of vehicles and goods. Besides the platform can remind drivers to optimize their driving habits based on big data of geographic
information and reduce transportation energy consumption by using predictive navigation and fuel-saving algorithm.
035Environment
Green Aviation Energy Conservation and
Emission Reduction Leading Energy Management
Group and Management Taskforce
SF strictly complies with the Energy Conservation Committee
Law of the People’s Republic of China the
Regulations of Guangdong Province on Energy
Conservation and other laws and regulations
and constantly optimizes its energy management
system. The Company has also developed the
Energy Management System of SF Airlines and Conduct statistical analysis on aviation kerosene
set up an aviation carbon emission taskforce to Guide the work of the Energy gasoline diesel fuel gas water electricity and
Management Taskforce; other energy data;
coordinate and promote the energy conservation
and carbon reduction work of air transportation Review and assess the work Formulate specific energy management work
modules. plans and measures proposed plans and measures;
by the Energy Management
Taskforce. Advance the implementation of energy
management work plans and measures;
Regularly report the project progress to the
Leading Group.SF’s Aviation Energy Management Structure
In order to ensure the authenticity and reliability of carbon emission data and meet the carbon emission monitoring requirements of regulatory
authorities the Company invites a third-party verification agency to verify SF Airlines’ GHG emission data annually and issue a verification report
accordingly. In SF Airlines passed the carbon emission verification of the Civil Aviation Administration of China and the Ministry of Ecology and
Environment carried out internal environmental audits and completed the annual ISO 50001 Energy Management System certification.* Optimizing composition of aircraft types: SF is committed to building a “green fleet” with low energy consumption and high efficiency.Since 2018 SF has proactively introduced large cargo aircraft models such as 747 757 and 767. The newly purchased large cargo aircraft
models when fully loaded feature higher carbon-emission efficiency and lower ton – kilometer fuel consumption compared to the traditional
737 model. By the end of SF owned 77 cargo aircraft in total.
The proportion of self-owned large aircraft of SF increased year by year from 2019 to 036Environment
* Applying fuel-saving technology: SF adopts several energy saving and emission reduction measures such as optimization of flight level
Energy Conservation and
Emission Reduction Leading Energy Management refinement of payload dynamic allocation of aircraft models based on payload forecast redispatch straight route selection and APU
Group and Management Taskforce shutdown to reduce fuel consumption. In SF saved about 1234 tons of jet fuel and reduced carbon dioxide emissions by 3742
Committee
tCO2e through straight route selection and saved about 707 tons of jet fuel and reduced carbon dioxide emissions by 2144 tCO2e through
redispatch.* Online fuel management: SF has built an aviation fuel management system which can effectively assist in the monitoring of the Company’s
aviation fuel data realize monthly fuel consumption data statistics and dynamic monitoring of fuel-saving projects and improve the
consistency between flight plan and actual operation through the built-in refined management module of the system thus comprehensively
Conduct statistical analysis on aviation kerosene
Guide the work of the Energy gasoline diesel fuel gas water electricity and improving the operation quality. In SF further improved the fuel consumption data statistics function of the system and completed the
Management Taskforce; other energy data; adaptation of the B747F aircraft configuration to the fuel management system.Review and assess the work Formulate specific energy management work
plans and measures proposed plans and measures; * Strict prevention of maintenance pollution: In response to the waste engine oil generated during the aircraft maintenance process SF has
by the Energy Management
Taskforce. Advance the implementation of energy formulated the Waste Oil Management Regulation which clearly stipulates the treatment of waste oil hydraulic oil and lubricants released
management work plans and measures; during aircraft maintenance and requires the maintenance personnel to regulate the management of waste oil stored in accordance with the
Dangerous Goods Management Procedure.Regularly report the project progress to the
Leading Group.* Upgrading fuel-saving incentives: Based on the fuel consumption data statistical function of the fuel management system the dispatchers’
SF’s Aviation Energy Management Structure fuel-saving data is regularly ranked so as to help dispatchers understand their own fuel-saving situation and lift their awareness of fuel
saving. In the Company updated the fuel saving rules for flight and dispatch as well as pilot incentive standards implemented
performance-based management of pilots’ energy-saving flights and mobilized pilots to practice fuel saving by setting incentive bonuses.* Optimizing ground fleet: In order to achieve the goal of “striving to increase the electrification rate of vehicle equipment in the aviationbase field to 100% by 2030” SF has taken the initiative to decommission diesel and gasoline buses in view of the actual situation of the
aviation base and added new energy powered conveyor-belt loaders lifting tables tractors and other special vehicles to gradually increase
the proportion of airport vehicle electrification.Airport base Electrification of vehicles in Shenzhen headquarters 18 new-energy powered vehicles were added and 11 diesel vehicles were decommissioned
Hangzhou base 6 new energy powered special vehicles were added
19 new energy powered special vehicles and 2 electric buses were added and 1 diesel bus
Beijing base
was decommissioned
New Energy Powered Conveyor-belt Loaders and Tractors in Aviation Base
037Environment
Green Airport
* Smart energy control: The Hubei Ezhou Huahu Airport project of which SF has participated in the construction introduced a smart energy
management and control platform. After the airport is put into operation the platform can realize whole process energy control from
the source to the terminal realize coordination and optimization of different energy forms (photovoltaic charging pile energy station
outsourced electricity etc.) through algorithm model and increase comprehensive energy consumption efficiency of the airport by 10% as
estimated.* Utilizing renewable energy: The renewable energy rate of the airport reached 25.6%. The PV power generation facilities can provide 35.31
million kWh of electric power annually and the installed capacity of ground source heat pump is 12362 kW which help to greatly reduce
the fossil energy consumption and GHG emissions.Building Green Industrial Parks
SF is committed to building green industrial parks and enhancing transit efficiency and energy-saving benefits as well as reducing the environmental
impacts of transit links by laying rooftop photovoltaic equipment optimizing warehouse space layouts and other means.For the management of industrial parks SF has formulated the Property Equipment Management System and the Property Environment Management
System to restrict water and electricity consumption through equipment management safety management decoration management environmental
management and other modules. In the Regulations on the Management of Water and Electricity in the Industrial Parks the Guidelines for the
Maintenance and Management of Facilities and Equipment in the Industrial Parks and the Property Service Standards for the Industrial Parks were
updated by the Company clarifying the maintenance standards and procedures for facilities and equipment further standardizing the management of
water and electricity in the parks.Case: Rainwater Collection and Reuse Effectively Saving Water Resources
In SF carried out the permeable concrete construction in Hangzhou and Nanning industrial parks piloted the rainwater collection and recycling in the parks for
green belt sprinkling effectively saved the water resources by improving the utilization rate and set a good example in protecting the ecological environment.* Hangzhou Industrial Park laid 10535 square meters of permeable concrete and collected 2000 tons of rainwater for green belt sprinkling in ;
* Nanning Industrial Park laid 6612 square meters of permeable concrete and collected 1264 tons of rainwater for green belt sprinkling in .Permeable Concrete Construction in Hangzhou Park Permeable Concrete Construction in Nanning Park
038Environment
In order to improve the efficiency of property management in the industrial park SF has set up a property management system covering property
modules such as environmental greening of the park security and fire management maintenance and testing of facilities and equipment etc. As of
the end of the Reporting Period the property management system has covered all industrial parks in operation.Case: Building a Smart Water and Electricity Meter System to Dynamically Monitor Water
and Electricity Data
By transforming the park’s smart water and electricity meters SF has established
a unified intelligent and visual water and electricity management platform to
realize the supervision of electricity and water consumption data in the industrial
parks greatly lifting the operational efficiency of the industrial parks. By the
end of the Reporting Period 24 parks have completed the transformation of
intelligent water and electricity meters.The Company constantly strengthens the use of clean energy and actively deploys renewable energy power generation plans. By the end of the
construction of rooftop PV power generation projects was completed in a total of 9 industrial parks with a photovoltaic panel laying area of 95000
square meters an overall installed capacity of more than 13 MW and renewable energy generation for the year was 9843000 KWH.
Targets Progress of Targets 2023 Targets
In 2023 the total installed PV
In clean energy generation In renewable energy capacity in the industrial parks
Clean Energy will reach 20 million kWh from generation reached 9843000 will reach 100WM and the clean
industrial parks. kWh5 from the industrial parks. energy generation will reach 40
million kWh.-re
s]
ow[L
SF’s Photovoltaic Industrial Parks
In addition SF continues to carry out the laying of charging piles to meet the green travel needs of customers in the industrial parks. By the end of
the Reporting Period the construction of charging piles in 13 parks has been completed with 148 charging piles and 222 charging guns installed.
5 Due to influence of the phased static management and abnormal weather on on-site construction in some cities in the construction periods and commercial
processes of the photovoltaic projects in the industrial parks slowed down and some projects were not connected to the electricity grid.
039Environment
Promoting Green Office
SF has developed internal policies such as the Measures for Office Management and the Measures for the Management of Water and Electricity to
effectively promote the integration of the green development concept into day-to-day operations encourage employees to follow the low-carbon
practice forge a green and environmental-friendly working environment under concerted efforts to build up a resource – and energy-saving company.The Company encourages employees to hold online meetings to avoid unnecessary travels fosters shared office and regular teleworking and strives
to achieve energy saving and emission reduction. The operation of the Company does not involve massive use of water resources and wastewater
discharge or products and businesses easily causing pollution to water resources.Energy-saving measures at the workplace
Power Water
saving conservationAutomatic switch-off each Use natural light during Avoids “waste spillinghour from 8pm daytime dripping and leakage” of water
Lights at the workplace will be subject to SF strengthens the electricity management SF reinforces the inspection rounds on
a planned outage during the periodic idle on-premise installs energy-saving devices water equipment at the operating
hours such as automatic switch-off each in designated areas such as PIR switch to premises reports any issues on a timely
hour from 8pm after office hours and achieve reasonable use of lighting basis repairs failed equipment andchanging lighting turning-on method into equipment. avoids “waste spilling dripping andmanual switch-on. We also encourage leakage” of water.employees to use natural light during
daytime to decrease power consumption.Reasonable temperature Installs energy-saving
settings devices
Automatic air conditioning will be SF strengthens the electricity
dynamically adjusted by season. management on-premise installs
Through reasonable temperature energy-saving devices in designated
settings SF guarantees a comfortable areas such as PIR switch to achieve
working environment for employees reasonable use of lighting
while reducing the waste of power. equipment.Sustainable Packaging Practice
In line with the development trend of green packaging SF firmly carries out the specific requirements of the “9917” Programme for green
development of the postal industry increases investment in R&D of packaging materials pursues technology innovation reform and application
of green packaging materials and continuously explores the refined operation of recyclable packaging intending to shore up green packaging
development by collaborating with the downstream and upstream stakeholders. The Company is oriented to sustainability and intelligence to promote
packaging reduction reusing recycling and degradability. In SF decreased carbon emissions by around 506000 tons through the promotion
and use of green packaging.
040Environment
Packaging reduction
To scale down the waste of resources and environmental pollution SF reinforces the management at source and carries out special rectifications
for excessive packaging. The Company has published the Packaging Operation Code of SF which details the instructions of packaging operation for
different types of consignments and implements the requirements of green packaging. The Company continues to improve its packaging scheme
library through the intelligent packaging service platform and empowers couriers to use reasonable packaging for different types of contents with
guidance via videos pictures and other methods reducing excessive packaging under the premise of parcel safety.In SF facilitated the “Fengjing Plan” and started the reduction standardized and scenario-based innovative R&D of 8 categories of materials
such as plastic bags adhesive tape stickers and seals. By using lightweight compact and foldable design SF cut down the consumption of plastics.In the Company reduced the use of base paper by around 47000 tons plastics by around 150000 tons carbon emissions by 150000 tons by
packaging reduction.Case: Air Column Packaging in Replacement of Foam
Pursuant to the physical mechanics theory air column packaging takes use of natural air to create a full covering cushioning
protection minimizing the loss and damage during transportation. SF promotes the use of air column packaging to replace
foam PE foam and other cushioning materials. Since air column packaging better fits the shape of parcel contents it can
reduce the use of packaging materials lower cost and enhance operation efficiency in packaging while realizing the concept
of green and environmental protection.Recyclable package
To reduce damages shorten operation duration and lower operation costs SF has developed recyclable packaging containers that fit full-scenario and
full-function applications to different businesses determining standard practices for compatibility between containers and carriers. Meanwhile SF has
developed an intelligent management and operation platform to provide support for intelligent container management.SF has used various mature products such as confidential transport boxes temperature-controlled containers (for air freight) fragile goods recyclable
transfer containers food recyclable environmental-friendly boxes and recyclable pharmaceutical pallet boxes for different industries and scenarios to
effectively address the deficiencies of traditional packaging and containers such as excessive cost prone to damages low operation efficiency and
waste of resources. In recyclable boxes have been used for 32 million times reducing carbon emissions by 13000 tons.Case: Carbon Neutral Product—— “π-Box” Recyclable Boxes
SF launched a carbon-neutral product π-box recyclable packaging box. π-box uses PP honeycomb plate a single material that is
easier to recycle and an auto-bottom locking foldable structure as well as velcro tape for the whole box avoiding the use of
consumables such as plastic tape and zippers. As of the end of 1.258 million π-boxes had been used in more than 170
cities across the country for 17.98 million times decreasing carbon emissions by around 5219 tons.In addition the Company also establishes a full-process control platform for π-box recyclable packaging boxes with functions
of pickup delivery inventory and allocation while conducting trials of IoT equipment to pave way for automatic inbound and
outbound scanning in the future.Recyclable packaging box “π-box”
041Environment
SF provides tailored green packaging solutions to customers for pharmaceutical transportation. By using recyclable and temperature-controlled
pharmaceutical boxes and pharmaceutical pallet boxes SF delivers safe transportation services to customers while improving the green service
experience to customers and aiding them in reducing costs and enhance efficiency.Temperature-controlled pharmaceutical transportation
SF uses recyclable and temperature-controlled boxes to replace disposable foam boxes and increases box
reuses by upgrading and iterating the box material. In the temperature-controlled boxes for medicines
had been reused 100 thousand times in total.Normal temperature pharmaceutical transportation Recyclable Temperature-controlled Box
SF uses recyclable pharmaceutical pallet boxes to replace disposable packaging (e.g. cartons) to further
improve protection while reducing stuffing effectively resolving the problem of medicine and other fragile
content’s protection prone to damage. The recyclable pharmaceutical pallet boxes adopt buckles for
assembly and its nail-free operation can reduce risks of work-related injuries. Meanwhile the foldable
design can achieve lower loading and volume while reducing transportation costs. In the recyclable
pharmaceutical pallet boxes had been reused more than 2.3 thousand times in total. Recyclable Pharmaceutical Pallet Box
Degradable package
SF carries forward its ongoing commitments to R&D of biodegradable packaging materials and proactively
builds up a technology reserve for biodegradable packaging materials. “Feng Bag” independently developed
by SF has been widely promoted and used across the country with a biodegradation rate of over 90%. At
the end of the Reporting Period more than 62.51 million “Feng Bags” had been used in Beijing Guangzhou
and other cities.In addition the Company also carried out trials on various kinds of biodegradable packaging materials
including degradable tape and degradable cushioning materials intending to reduce the use of non- Fully Degradable “Feng Bag”
degradable plastic in an orderly manner perform its duties for environmental protection and put green
packaging into practice.Formulation of green packaging standards
To support the country’s postal authority to continuously improve the standard and policy system in
connection with green packaging SF made an active contribution in formulating the national and industrial
standards thereof. In SF as one of the key companies participated in the formulation of two national
standards namely the Management Specification for E-commerce Logistics Recyclable Packaging and the
Guide for Package Recovery and Recycling of Mails and Shipments devoting itself to green governance for
express packaging materials and recycling of packaging resources to reduce environmental pollution and
achieve sustainable development.In addition SF also has established a packaging laboratory testing center to focus on testing the materials Certified by the ISTA (International
used in express and logistics packaging safety verification of packaging solutions and innovation and Safe Transit Association)
research on packaging standards. Along with its capability of testing 45 types of packaging material and 400projects as well as over 140 testing standards SF has led the industry by being accredited as the “GreenPackaging Technology R&D Center for Postal Industry” and has been certified by both the ISTA (International
Safe Transit Association) and the CNAS (China National Accreditation Service for Conformity Assessment).SF Packaging Laboratory Testing Center constantly strengthens its input in fundamental research collaborates
with dozens of universities in R&D of functional packaging technology temperature control and freshness
maintenance of food and green technology packaging carbon emission assessment and formulation of
national standards. SF also builds up an expert and resource pool to engage in multiple research projects
facilitating the transformation of logistics modes and filling up the gap in the industry.Certified by the CNAS (China National
Accreditation Service for Conformity
Assessment)
042Environment
Promoting Circular Economy
In response to the country’s call for the full implementation of a circular economy SF has put in place the improvement of
resource efficiency and the reduction of GHG emissions as the direction of green development cooperating with the upstream and
downstream of the industry chain to jointly contribute to the construction of “zero-waste cities”.Green Industry Development
SF made continued efforts on building an express packaging cycle ecosystem and cooperating with the upstream and downstream of the industry
chain to jointly promote the development process of sustainable packaging. In SF participated in a research project on the high-value use
of plastic packaging initiated by the Green Recycling Plastic Supply Chain Group (GRPG) to jointly explore a new model of green and low-carbon
recycling of plastics and the development of a “double easy” (easy to recycle easy to regenerate) standard for express packaging. SF was committed
to crafting a synergetic model of “packaging R&D + social operation” i.e. express packaging bags are recycled by specialized recycling enterprises
and put back into production and manufacturing breaking away from the traditional linear model of “manufacture-use-disuse”. This is designed to
build a system of plastic packaging (from design production consumption to recycling regeneration and – high-value application) to minimize the
impact of plastic waste on the living environment and to create a green closed loop for the whole process.Designing formulas Last mile delivery
and supplying Shipping
ingredients Recycled polybag
Return of packaging
materials
Recycled raw material Recycled polybag manufacturers SF Terminal express outlet/post Consumers
manufacturers
Designing formula of recyclable Providing recycled PE plastics with
packaging materials providing quality and source traceability Cleaning recycling and pelletizing
technical support
Municipal waste recycling enterprises Waste film-based plastic products
Providing recycled materials
for resourceful reuse
Recycled plastics manufacturers
Express Recycling and Regeneration System
In addition SF proactively carried out the recycling of used clothing electronic products cartons and other items to drive customers to participate in
recycling by quantifying the carbon emissions in the recycling process while effectively saving the use of raw materials reducing the consumption of
natural resources and promoting the development of a circular economy.Brand enterprise recycling
Sort out
Sale
Down
Charitable donations Sale
Recycled pallets
Recycled down
Non-down Recycled pallets production
Recycled down production
043Environment
Cultivating Public Awareness of Environmental Protection
SF has always been committed to raising public awareness of environmental protection. SF promotes environmental protection activities at all levels
within the company to reduce GHG emissions. Moreover the Company actively promotes the ideas of environmental protection in the society. By
virtue of a wide range of environmental protection activities SF aims to inspire the public and partners to be more environmentally conscious to
achieve green development and to build a “zero-carbon future”.SF Forest:
The SF Forest project is an active exploration of the Company’s involvement in a new model of carbon neutrality promoting the idea of “zero carbon” for volunteers
employees and customers through online SF Forest micro-application and offline SF Carbon-Neutral Forest.The SF Forest micro-application is available on the WeChat and Forespace (Fengsheng) platform where users can measure the total amount of GHG emissions
generated directly or indirectly within a certain period of time and offset their own CO2 emissions by planting trees to achieve “zero emission”. And SF Forest also
offers games such as charity hike for watering and rewarding sapling cultivation. As of the end of December a total of 46156 persons participated in the online
activities and 8111 people adopted 36301 saplings online. Among them an additional 18801 people participated in the activities in and a total of 20471
saplings were adopted representing an increase of 3180 compared with 2021.SF Carbon-Neutral Forest: By the end of SF has planted over 300 acres of carbon-neutral forest in Hebei with over 50 thousand saplings. It will absorb at least
2400 tonnes of CO2 from the atmosphere during its future growth.
Volunteers Planting Trees in SF Carbon-Neutral Forest
044Environment
GO GREEN TOGETHER:
From 2020 onwards SF has launched the GO GREEN TOGETHER
a creative initiative to transform cartons aiming to call on all
people to make use of idle express boxes and DIY together to make
secondary use of carton resources turning waste into wealth.After the “Double 11” promotion in a large number of
express cartons piled up at users’ side therefore SF launched
the “Double 11 – Carton Recycling” initiative of “GO GREENTOGETHER – Enjoy A Better Life Through Paper Recycling” on
multiple Internet platforms. With the theme of cute pets popular
among young users SF encouraged and called on users to
transform the express cartons into various pet supplies cooperated
with well-known bloggers to post carton transformation tutorialsand gathered a group of DIY enthusiasts to participate in the “GOGREEN TOGETHER” program for more user engagement.Green Gift Box of Campus Recruitment:
In campus job fair SF adopted fully degradable packaging tape
and laser inkless printing to produce campus recruitment gift boxes
using laser engraving technology to replace traditional ink solving
the problem of ink pollution in the production of gift boxes and
conveying the concept of green packaging to university students.Green Carbon Energy Platform:
SF launched a Platform (“SF Carbon Energy Platform”) to advocate
consumers to obtain “green energy” by using recycled packaging.In April the Platform was upgraded to include more carbon-
reducing scenarios with users earning “green energy” when using
low-carbon services such as intra-city delivery recyclable packaging
electronic POD and photo uploading which can be redeemed for
points. By this platform SF would work together with users to create
a low-carbon life.
045Environment
Tackling Climate Change
In recent years with the frequent occurrence of extreme weather events and the intensification of global climate risks addressing
climate change has become a global consensus. With the national carbon peaking and carbon neutrality strategy in mind SF
has integrated climate change into its management and operational practices proactively identified climate change-related risks
and opportunities and strived to improve its governance performance on climate-related issues with a view to becoming an
industry leader in sustainable development. In accordance with the recommendations of the Taskforce on Climate-related Financial
Disclosures (TCFD) SF disclosed the work on identifying and responding to climate-related risks and opportunities from four
aspects: governance strategy risk management and indicators and targets.Governance
SF has sufficiently integrated climate change risks into its risk management system and regularly identified and assessed them in accordance with
the Company’s overall risk management process. The Risk Management Committee under the Board of Directors has a clear understanding of climate
change risks and guides the overall risk management of the Company on behalf of the Board of Directors. The Risk Committee is a sub-committee
of the Risk Management Committee and is responsible for formulating the Company’s overall risk management strategy including climate change
risks and making decisions on the Company’s major risk prevention control and coping strategies. The Group’s Risk Control and Compliance Office
regularly conducts discussions and analyses on climate change-related issues and prepares reports on the Group’s overall risks including climate
change risks for submission to the Risk Management Committee of the Board of Directors. (For more details on the risk management structure and
the risk identification and assessment process please refer to the “Risk Management System” chapter.)
Strategy
SF identifies risks through questionnaire survey team discussion expert consultation scenario analysis policy analysis and industry benchmarking and
lists the following potential risks according to TCFD climate-related risk classification:
Physical risk
Acute risks: Typhoons extreme precipitation floods extreme heat extreme cold
Chronic risks: Rise in temperature and sea level
Transition risks
Policy and regulatory risks: Energy structure and energy use carbon pricing environmental information disclosure
Technical risks: Energy technology green packaging green transportation green sales green office
Market risks: Change in consumer preferences
Other stakeholder impacts: Investor concerns demand of upstream and downstream supply chain local community concerns employee
needs
The risk control department conducts in-depth studies on various potential risks and assesses the risk tolerance of the Company based on their impact
on the realization of risk control and management objectives.
046Environment
Risk Management
SF constantly improves its risk management mechanism and climate risk identification and response measures. In the Company sorted out the
identified climate change risks and reviewed and updated its response strategy in two dimensions: physical risks and transition risks.Risk type Risk name Countermeasures
Physical risk
Land transportation: The Company implements pre-warning for vehicle use in abnormal
weather; for new-energy powered vehicles the Company develops courses for winter
use charging power supplementation maintenance and other matters needed
attention for vehicle management personnel to learn.Air Transportation: The Company formulates standard operation manuals for operation
guarantee under severe weather conditions such as thunderstorms turbulence and low-
Acute risk – extreme
Operational risks level wind shear and sets up posts of meteorological engineers to monitor and give
weather
early warnings about the weather situation and the development of important weather
systems thus fully guaranteeing the stable operation of daily flights.Industrial Park: The Company develops a weather warning function in its property
system including dispatching emergency work orders sending weather warnings and
emergency preparedness messages to enhance the response speed of industrial parks to
extreme weather and lessen the negative impact caused by extreme weather.Based on the national urban temperature data and routing data collection the
Company developed an environmental temperature model dividing the country
into different temperature zones used different temperature control materials
Packaging material and composite temperature control technologies and output temperature control
safety risks packaging schemes and refrigerant configuration requirements based on temperature
zones and flow directions to cope with the potential adverse effects of low temperature
in winter high temperature in summer and north-south temperature differences on
freights.Chronic risk – rise in The Company issues yellow or higher heat warnings in areas with a high incidence of
temperature heat-related illnesses and reduces the number of people working outdoors during hot
periods by combining areas/shifts according to the volume of work. Also employees
are provided with heat protection materials such as portable fans hats and heatstroke
preventives.Employee health risk
The Company is equipped with cooling equipment (fans air conditioners etc.) at the
premises installed heat insulation on the roof for solar insulation so that the premises
will not be overheated by solar radiation and installed sun-proof curtains for windows
that are exposed to direct sunlight.Transition risks
The Company keeps a close watch on green energy-related policy trends responds
to regulatory requirements in a timely manner and promotes internal management
Green energy policy optimization. The Company has built up national and local policy research teams to
risk make an in-depth analysis on the relevant policies that have been introduced and to
make forward-looking arrangements based on changes in the internal and external
environment.With the rapid expansion of the air fleet size of SF and the increase in demand for
Policy and regulatory intercontinental routes SF is highly concerned about the international carbon emission-
risk Offshore compliance related laws and regulatory requirements. The Company built a group on carbon
risk emissions for EU routes and prepared an EU carbon emissions work plan to cope
with changes in EU policies familiarize itself with the EU carbon market operation
mechanism in advance and ensure the normal operation of EU routes.The Company is committed to exploring and innovating the sustainability of green
Green packaging packaging promoting packaging reduction reuse recyclability and degradability and
policy risk has successively launched green packaging products such as “π-Box” recyclable boxes
and “Feng Bag” fully-degradable packaging plastic bags.The Company gains keen insights into industry development trends by taking the
external environment and policy changes into consideration pays attention to its own
Low carbon transition environmental impact formulated the Carbon Target White Paper and uses artificial
Technical risk
risk intelligence big data and other technologies to adjust the energy consumption
structure upgrades transport and business models and promotes green low-carbon
transformation.Responding positively to the green consumption trend the Company provides more
environmental-friendly and sustainable logistics services to consumers by adopting
Change in consumer
Market risk sustainable logistics solutions reducing resource waste promoting green logistics
preferences
services optimizing logistics networks and facilities and supporting environmental
organizations and initiatives.
047Environment
Changes in the external environment due to climate change are generating new risks as well as new opportunities for the Company.Opportunity type Opportunity content Countermeasures
SF has a wel l -establ ished track record
of research and development in green
packaging design and holds a significant
Guided by the national policy of green amount of intellectual property rights. Once
Marketization of Green packaging packaging the market demand for green the market environment is mature SF can
packaging will gradually expand. quickly promote green packaging speed up
the marketisation of recycled packaging and
enhance the Company’s reputation and hence
market acceptance.As an enterprise with an early presence
in new energy capacity resources in the
As climate change becomes an increasing
industry SF i s acce lerat ing the green
global concern the customers that SF
Green supply chain market t r a n s f o r m a t i o n o f l a s t - m i l e d e l i v e r y
serves will demand green and clean
continuously increasing the proportion of
services from their suppliers.green fleet and obtaining more green supply
chain certifications.Indicators and Targets
SF is committed to measuring our achievements in addressing climate change risks and opportunities through quantitative indicators. The Company
will continue to disclose climate change-related environmental indicators such as energy consumption and intensity and GHG emissions and intensity
as well as target achievement progress in the annual Sustainability Report and strive to achieve its carbon reduction target by 2030 so as to help
China achieve the carbon peaking and carbon neutrality goals.Long-term targets6
* Enhance our carbon efficiency by 55% by 2030 compared to 2021
* Reduce the carbon footprint of each express parcel by 70% by 2030 compared to 2021
Medium- and short-term targets
Based on the carbon reduction target of 2030 SF has set phased targets and collaborated with all business modules to jointly achieve the carbon
target:
Target type Targets of 2023
Green transportation 2000 new-energy powered vehicles are expected to be added to the fleet in 2023.Clean energy The clean energy generation capacity of the industrial park is expected to reach 40 million kWh in 2023.By implementing packaging reduction measures in 2023 it is expected to reduce carbon dioxide emissions by
Green packaging
88 thousand tons.
6 This long-term goal does not include Kerry Logistics Network Limited (“KLN”) as KLN has set and announced its carbon reduction target and there are differences in
business forms between SF and KLN.
048SOCIETY
Showcasing Love
Enriching Communities
Talent Pool Development
Ensuring Safety Production
Building Responsible Chain Together
Bearing Social ResponsibilitySociety
Showcasing Love Enriching
Theme Communities
Around us there is such a crowd of SF couriers who are always busy in the corners of cities riding through streets and alleys
working hard as everyone does and always stepping up first and reaching out to others or the society whenever needed for
example when there is a fire to put out a life to save and an supply to be secured... In the seemingly insignificant efforts there are
many mediocre but great simple but touching deeds in the action of SFers. The brave warm-hearted and ordinary couriers not only
pass on the express in their hands but also the warmth of people.SF Cour ier Became a C o u r i e r s S h o w e d 40+ Hours of Continuous
Hero in the Food Truck “Collective” Power by Rescue to Build a Bridge
Fire Climbing the Building to Life
to Save People wi th
In July Liu Lei a courier from Linshu “Human Pyramid” In June when flooding broke out in
Shandong Province found a f i re in an northern Guangdong due to heavy rainfall
unattended mobile food truck while passing the Blue Sky Rescue of which courier Mo
through a commercial street in the process In August Heilongjiang SF couriers Qile is a member rushed to the affected
of delivery. In this critical situation Liu Lei Zhang Yan Zhang Jianyu and Li Xinbo and districts and counties to provide relief at the
urgently evacuated the crowd while working warehouse operator He Fei were unloading first opportunity. Under the leadership of the
with the superintendents to put out the fire. a truck when they heard someone calling local emergency management department
In the process of putting out the fire Liu Lei for help. Following the sound they found Mo Qile and his fellow team members quickly
found that there were still two gas cans in an old man hanging outside the third-floor acted and helped relocate stranded residents.the food truck. In such an emergency he window of a residential building who was They carried the stranded people on their
risked his life to “grab” the gas cans from delirious and could lose his footing at any backs along the flooded way to safe areas
the burning food truck avoiding secondary time. Zhang Yan immediately called the and due to a large amount of bacteria in the
acc idents and protect ing the l ives and police and rescued. As the old man suffers flood formed “human bridges” in the water
properties of the surrounding people. from Helmholtz’s disease in order to prevent to allow pregnant women children and other
him from losing his footing and falling two susceptible people to walk on their shoulders
After the incident the owner of the food people in the bottom lifted him one person to the boats. With the joint efforts of Mo Qile
truck came to the SF outlet with a banner held the window frame and poked out to and his teammates a life-saving channel was
to thank Liu Lei for his heroic act. The help and another person gave help in the opened and stranded people were successfully
banner not only represents the owner’s building. From a distance they built a stable rescued.gratitude to the courier but also conveys the “ Collective (众-shaped)” structure. When the
positive energy of SFers to be upward and nearby police arrived in time they worked
kind-hearted. together to save the old man back indoors.The hands of the couriers can hold up the
trust of customers and the weight of life.Their actions in distress and courage made the
residents who stopped around spontaneously
applauded for them.es] res
] s]
w-
r -
ow w-
re
[Lo [L [Lo
The owner of the food truck sent a letter of Couriers Saving the Old Man by Mo Qile rescuing a trapped person
thanks and a banner to Liu Lei “Human Pyramid” from flood waters
Hot-blooded reliable positive...these words are not used to describe SFers by accident but from numerous standing-out in danger and commitment
to responsibility.When eating fruits one should think of the fruit trees; when drinking water one should think of the source of the river. SF understands that
enterprise and society are intertwined and on the road to development the Company has persevered in serving people’s livelihood wholeheartedly
giving back to society with sincerity taking social responsibility as the internal motivation for sustainable development sparing no effort and devoting
ourselves to deliver goodwill and love to society through practical actions.
050Society
Talent Pool Development
SF works to create a fair just and open talent environment build a talent mechanism of self-talent generation and an elite talent
team and form a healthy and sustainable talent supply chain thus supporting the Company’s rapid growth and developing its
future competitive edge. Talent-driven business helps SF become a career platform for global outstanding talents to realize dreams
and take pride in themselves with a passion for excellence.Protection of Employees’ Rights and Interests
SF acts according to the laws and regulations including the Labor Law of the People’s Republic of China and the Labor Contract Law of the People’s
Republic of China to protect the legitimate rights and interests of employees in human rights protection employment and recruitment career
development compensation and benefits health and safety and to build harmonious labor relations.Human rights protection
SF is dedicated to protecting human rights of all groups of the communities involved throughout its global operations and the communities in which
it operates. The Company acts according to domestic and international regulations including the Labor Law of the People’s Republic of China the Law
on the Protection of Minors the UN Global Compact and the Universal Declaration of Human Rights. SF has developed rules and regulations including
the Employee Handbook and the Labor Contract. The Employee Handbook and SF Recruitment Management System prohibit child and forced labor
discrimination and differential treatment which mandate measures including equal pay for men and women limitation of working hours protection
of female employees’ rights and interests and the promotion of employment for people with disabilities. If violations of child labor are found the
Company will immediately deal with the relevant persons seriously according to the severity of the circumstances and report the situation to the
administrative authority of labor security.Policies to address human rights:
Ensure equal opportunities: Every employee is treated equally and respected regardless of their duties or positions. Selections and
appointments must follow the principles of fairness impartiality and openness.Protect against discrimination and differential treatment: Prohibit discrimination on the ground of any legally protected characteristics
such as gender nationality belief and age.No employment of child labor: Explicitly stipulate that persons under 16 years old are not allowed to be employed.No human trafficking: Prohibition of slavery or human trafficking in any part of the Company’s business and supply chain.Collective agreements and freedom of association: SF respects employees to freely connect with third-party organizations in accordance
with local laws as well as join form or not join labor unions. Employees may join the collective bargaining agreements voluntarily.Employees have the right to participate in or form associations that comply with the laws and regulations of the countries in which they
operate.Free expression of opinions: SF respects employees’ freedom of speech within the legal boundaries and encourages employees to express
their opinions freely and actively communicate with the management.No harassment: Being rude to colleagues verbal provocation and other disrespectful behaviors and verbal harassment of colleagues
customers or external partners are not allowed by the system.No forced labor: SF does not force employees to work against their will and resolutely prohibits threatening or restricting their actions.Rights to rest and vacation: All employees are provided with legal paid leaves such as annual leave sick leave marriage leave and
maternity leave according to their local laws and regulations.Privacy protection: Disclosure of any employee’s personal information to others is prohibited without the authorization of the Company
and the employee.The policies apply to all directors officers and employees of S.F. Holding Co. Ltd. and its subsidiaries whether working for the Company on a
full-time part-time or temporary basis.SF employs an intelligent system to ensure legal employment and prevent child labor. The Company requires all applicants to apply online and the
system automatically identifies the age of applicants from their ID cards. Interviews of those under the age of 16 are prohibited. When the applicant
goes through the induction procedure the online system makes face recognition to judge whether the person and the certificate are consistent.
051Society
In SF was not involved in major labor disputes and received no complaints on human rights issues.In terms of the working hours of employees SF stipulates the working hours in the Employee Handbook Attendance Management Regulations and
Labor Contract. The Company has established the Flexible Working System to provide convenience for employees with demand for special working
hours. In addition during holidays and business peaks SF increases the number of workers in some temporary and auxiliary positions by working with
third-party companies to hire flexible workers. This reduces the work intensity of employees on duty and guarantees their rest and personal time. The
Company treats all workforces under flexible employment equally and adopts the same management standards as its own employees. SF or third-party
companies sign legally compliant contracts or agreements with all temporary employees pay reasonable remuneration according to the regulations
and purchase employer’s liability insurance (including accident insurance) or work-related injury insurance for all temporary employees.In the social insurance coverage of SF full-time employees was 100%.In case of any labor contract termination such as major restructuring or changes at SF SF will explain 30 days in advance to the labor union and all
employees. SF will fully consider suggestions from the labor union or employees before deciding.Talent introduction
SF formulates an employee recruitment plan every year according to the Company’s business development needs and changes in the talent market
strengthens the workforce building and ensures the stability and vitality of workforce. The Company recruits new employees through campus
recruitment internal recommendation online recruitment and other recruitment forms and strives to ensure highly matched and high-quality talent
supply through a strict fair just and open standardized employment process. In the Company revised the SF Recruitment Management System
to further clarify the recruitment principles standards and implementation process and to standardize the management of all recruitment links which
provides a professional continuous and timely talent introduction guarantee mechanism for the sustainable development of the Company.Table SF Workforce Data in 2021-7
Category Unit 2021 Total workforce Person 678413 699474
Male Person 578854 596478
By gender
Female Person 99559 102996
Management employees
(including primary-level Person 22020 21630
managers)
By job functions
Functional employees Person 41368 39379
Primary-level employees Person 615025 638465
Bachelor’s degree or above Person 46463 47664
By educational background Junior college Person 116988 124651
High school/technical
Person 514962 527159
secondary school and below
Aged below 30 Person 239743 227799
Aged 30-40 Person 336844 351476
By age
Aged 40-50 Person 93131 109905
Aged over 50 Person 8695 10294
Chinese Person 677430 698645
By geographical region
Non-Chinese Person 983 829
7 Excluding the workforce of Kerry Logistics Network Limited.
052Society
Equality and diversity
SF values equality and diverse talent and will never restrict recruitment or employment for reasons such as gender region nationality religious belief
or economic capability to ensure the diversified development of talents. In 14.7% of its employees was female.In addition SF actively strengthened the employment of people with disabilities and other special groups to optimize its talent team increase the
employment rate of special groups and demonstrate corporate responsibility.Recruiting people with disabilities: SF observes the resettlement policies for the disabled in various places and provides employment opportunities
for people with disabilities. Taking into consideration the pursuit of career and knowledge and the character of patience of people with disabilities
the Company assigns them to job positions that are less physically demanding for example customer service management warehousing professional
and etc. In SF provided jobs for 200 people with disabilities representing an increase of 68 people and 52% year on year over 2021. By the
end of the Reporting Period SF had 781 employees with disabilities in service.Recruiting foreign employees: SF’s overseas branches (subsidiaries) mainly recruit employees from their operating places employing them in areas
including human resources administration finance marketing and operations. SF benefits from their understanding of the local culture market and
policies. This also increases the local employment rate. SF had nearly 1000 foreign employees as of the end of .
053Society
Democratic management
SF strengthens its democratic management by setting up a labor union to supervise the protection of employees’ rights and interests listen to the
real voice of employees and solve their reasonable demands. In the Company established the Complete-Process Management Mechanism for
Demands and the Work Guideline on Handling of Employees’ Demands through Labor Union to constantly improve the democratic communication
and appeals mechanism and protect the immediate interests of employees.The Company encourages employees to offer suggestions
for the operation of the Company issued the Work
Guidelines for Conversing Employee Voice into Productivity
and Reasonable Suggestion Management Mechanism and
Advice and has organized 200 representatives to submit relevant
suggestions rationalization proposals based on the daily demand for
collection and delivery services. 200 representatives
The Company collects appeals from employees through the one-stop appeal
service and solves these problems in time every month. In a total of
19345 appeals were collected throughout the year and the annual resolution
One-stop rate of the one-stop appeal service is 97.4%.appeal service
a total of resolution rate
19345 appeals 97.4 %
Democratic Communication Mechanism
The Company issued the Labor Union
Hotline Service Quality Improvement Hotline accessibility/recording
Labor union Mechanism to ensure smooth feedback quality check
at your service channels for employees’ demands and
improve the service quality of labor union
staff. During the year 960 random checks
were carried out on hotline accessibility
and 960 random checks were carried out 960
on recording quality.At the same time the Company respects employees’ freedom of association and collective bargaining and respects the rights of employees to connect
with third-party organizations and join or form labor unions. Employees may join the collective bargaining agreement contracts voluntarily.In there were 236 staff representatives and five staff representatives’ congresses were held.There were a total of 130 labor unions 197 employees are working full-time for labor unions and over 21000 representatives
proactively engages in the activities of the minimum business organization at all levels. Specifically there are 61 independent labor
unions 30 of which enter into collective bargaining agreements with the Company on behalf of the employees and the coverage
of collective bargaining agreements was 49%.Moreover the Company conducted the employee satisfaction survey covering all employees quarterly. Based on the research results the improvement
plan was analyzed and formulated. The implementation measures were supervised by the majority of employees and the improvement effect was
reviewed periodically. In SF had 86.2% employee engagement and 86.4% employee satisfaction.
054Society
Talent incentives
Under the principle of high performance and high salaries SF takes value creation as incentive orientation. Specifically for employees with high
value contribution the Company provides competitive compensation systems in order to ensure its internal dynamics for sustainable development.Furthermore the Company sets salaries based on the position and ensures that the compensation level follows the market rules. Meanwhile the
Company attracts and retains core talents through differentiated and diversified short-and long-term incentive mechanisms. As such the core
personnel will be more closely aligned with the interests of shareholders and the Company ensuring the continuous growth of the Company’s
long-term business performance.In the Company implemented the “first asking responsibility system” aiming to stimulate employees’ creativity and achieve a more objective
and comprehensive evaluation of individual value contribution and output. Thus it could optimize the evaluation of individual value contribution and
output by improving the coordination efficiency of organizations and stimulating employees’ self-driven force.First asking responsibility system
Definition: The first one who is inquired for help is responsible for the problem
and needs to ensure closed-loop problem solving.Philosophy: Problem solving oriented and service management as the core.Attitude: Assume responsibility rather than shifting the blame and have the fearless
spirit of sticking to horizontal synergy.Supporting mechanisms: Value systems and incentive systems which are designed
to ensure that the value of any employee who solves problems in the real sense
First asking responsibility system
could be identified and paid off.SF has established short- medium- and long-term incentive mechanisms based on value contribution determined differentiated incentive structures
and standards for different positions ranks and performances and strengthened the leading effect of the headquarters and reshaped the framework
of organizational appraisal and incentive.In order to encourage incentive resources oriented toward high-value employees the Company applies performance management tools to motivate
talents and create a clean management orientation. In the Company advocated “more scientific and leaner management” as its performance
management strategies which further determined and improved the criteria for high-performing employees. These strategies encourage employees to
pursue excellence stimulate their potential help the Company identify high-performing human resources and promote the healthy development of its
talented team and help implement its business strategies.Selection organization Selection category Award setting Honor
Best
“Best SFer”
SFer
Annual excellence Top award of the Group Social Responsibility Award Customer Service Award Innovation Award
selection of the Group Outstanding Management Award Long-term Contribution AwardExcellence selection Special
Headquarters Category Special Awards (Key Figure/Business Pioneer)
of the Group awards
Annual excellence Excellence Excellence Excellence Individual awards by posts
selection of selection of selection of selection of BUs Collective awards by departments functions and outletsfunctional and independent
organizations districts departments organizations
Daily excellence Monthly instant Moral model Performance model Innovation model
selection of + = cheer for youselection award Management model Service model
organizations
Honor System of SF
055
Progressive upgradeSociety
In April the Company deliberated and adopted the Incentive Plan (Draft) and Abstract for Stock Options and completed the registration of
the initial and reserved grant of incentive targets in July and November respectively with a total of 1493 people registered. It is aimed to
maintain the Company’s leadership in the industry sharpen its competitive edges further establish and improve its long-term incentive mechanisms
attract and retain outstanding talents and mobilize its core talents’ initiative effectively.SF’s talent retention measures
Employees with outstanding performance evaluation results are its most important strategic resources. The Company formulates the
Regulations on the Management of Outstanding Employees to affirm and motivate talents in a timely manner in terms of talent identification
training retention and exit.? Care and reward
– Stock option incentive;
– Establish a caring system and conduct on-the-job interviews and regular counselling;
– Offer extra two-day paid leave;
– Display the list of outstanding achievements and award exclusive gifts and activity funds.? Career management
– Rely on the Career Development Assistant to encourage employees’ self-driven development and pay bonuses to
outstanding employees;
– Provide well-performing employee cultivation fund.? Retention and return visit
– Conduct resignation interviews to retain employees; visit resigned employees regularly and send them gifts on special
holidays.
056Society
Helping Employees Grow
SF builds a scientific and comprehensive talent management system develops a clear talent development path while improving the professionalism
and capabilities of employees providing them with a sound growth environment and a broad development platform to help them realize their career
dreams and create professional value.In the Company revised the Talent Management System twice combining the corporate vision and the organizational characteristics of “teamculture” which updated the employment concept and managerial responsibilities and added new modules such as key talent planning and talent
standard building and also updated the promotion management system according to the performance policy.Promotion management Talent training
SF values the career development of its employees. Guided by SF follows the principle to regard talents as the primary resource andthe employment principle of “competition encouragement and focuses on the growth and development of its employees.elimination” the Company implements the recruitment standard as
measured by the enterprise value and social value contributions thus In the core of training was the development of lean operation of
identifying and developing outstanding minds that are aligned with the talent team in all respects. To this end the Company consolidated the
requirements of values and have a sense of mission as well. idea of “one pool” of talents increased quality at source for instance
strengthening the development management of new college graduate
The Talent Management System mandates promotion principles employees. The Company also focused on “two tracks” to upgrade
and requirements for different categories of employees which the management systems of management team as well as professional
stresses the talent-post matching and value contribution. Employees team. Besides it improved “three foundations” from end to end. It
with outstanding value contributions are given more development provided the tools process and system support for the full process of
opportunities and resources including learning or incentives. talent management and created a sustainable ecology for talents to
support the need for business development.In the Company continued to improve the mechanism of
development programs in two channels i.e. management competence
and technical competence development offering employees a sound
development platform. Through the management competence
development channel employees with certain management ability can
participate in corporate operation and management. While through the
technical capacity development channel technical staff can become
experts in various fields through continuous improvement in technical
skills and accumulation of technical experience.In SF trained 160736 new employees and 513934 employees in total provided 2532405 hours of off-line training8. SF
conducted online training9 for 5981149 persons. The Company invested RMB65 million in training.Online training Average hours of
Training coverage rate
person-times offline training
Category
202120212021Male 82 75 5966421 5109845 4 5.4
By gender
Female 68.4 66 842225 871304 3.8 4.2
Management employees
(including primary-level 98.6 88 220879 173303 15.1 16.8
By job managers)
functions
Functional employees10 92.7 65 327021 256058 5.5 7.5
Primary-level employees11 78.6 73 6260746 5551788 3.4 3.8
8 Offline training refers to the duration of class hours in which employees participate. The data does not include special training in the business field. the Company has
reduced the number of centralized offline courses and developed more online courses for employees to learn.
9 Online training refers to the number of document and course learning on the ”Online Class” learning platform.
10 The third-tier non-management
11 The first-and second-tier management
057Society
SF has established training systems oriented toward grass-roots employees middle echelons professional teams and senior managers optimized and
upgraded the lecturer management system and completed the upgrading of the lecturer system in the learning platform with over 12000 lecturers.Meanwhile the Company encourages employees to participate in various skill competitions to help them tap into their potential.Table Talent Training System
In terms of couriers warehouse operators customer service staff salesmen and other employees the Company focuses on the
development of their service awareness safety awareness and communication skills. While emphasizing the performance
Grass-roots improvement of employees it also stresses their sustainable development by supporting the education promotion of employees at the grass-roots level and promoting individual long-term development.employees training
In terms of college-student training the Company improves training methods determines training systems and adds operation
activities and practice. For example it optimizes the on-boarding training courses and tutor management. It also promotes the
exchanges and sharing of college students through online-streaming channels such as “Fengshi” and “Gas Station for CollegeStudents”.Concerning to the training of grass-roots management (such as head of outlet) middle management (such as sub-district managers
and so on) senior management (such as district managers and so on) the Company has upgraded training systems with different
Middle echelon dimensions such as “Head of Outlet Training Program” “Fengyun Plan － Training Program for Reserve Head of Functionalbuilding Department” “Lighthouse Action － In-service Executive Training Camp” and so forth. Moreover it supports the combination of
training and practice and empowers employees to realize the rapid transition to managers and to “learn in work” and “practice inwork” through work shifts and taking part in programs. In this way the Company can create an elite management echelon and help
employees develop their leadership and business capabilities in practice thus providing an impetus for the completion of the
strategic goals and supporting the business operation.Committees are set up around professionals according to their areas of expertise mainly composed of experts who are responsible
for determining professional capabilities planning evaluating experts’ competence and controlling the direction of technical
expertise improvement. In the meanwhile SF carries out customized professional capabilities training programs including
probationary expert training expert lectures and expert forums and provides learning resources of excellent courses like general
Professional team skills in workplace and professional capabilities to help employees improve their professional capabilities in professional fields and achieve long-term development.building
The Company adheres to differentiated training covering in-service groups and new promotes and reserve. Conducting Fenghuo
training camp Feng+ Jixun and Fengxing training is helpful for managers to explore the nature of leadership and the core of
competitiveness. With a deliberate and steady pace and forward-looking thoughts the Company could cope with changes seize
opportunities strengthen will and improve quality. The training could not only help senior executives understand SF in a systematic
Senior management manner rise to challenges together and meet the needs of SF’s future development but also enhance the spirit of strategy
innovation change and transcendence inherit and refresh the spirit and create the future together.training
“Fengyun Training” Helped Improve the General Leadership of Reserve Head of Functional Department
“Fengyun Training” was a training camp for general
leadership development that was newly designed for
reserve leaders of functional department in and for
deep research on challenges and problems. It was also a
tailored hybrid learning program for management capacity
development. It focused on the root and aimed at pain
points and accurately supported managers at grass-roots
and middle level in rapidly growing into the crucial
cornerstone for the Company.Around the four aspects of “changing roles” “excellinga t management” “under s tand ing bus ines s” and
“strengthening quality” the program selected internal or
external high-quality resources of the Company. Through
online and offline training and discussing workshop and
benchmark enterprises examination it could also help
trainees improve their capabilities for back-up ensuring that they can fill in when there are job vacancies and work immediately once they are on
the job.The program included about 300 participants with a learning journey of 4 – 6 months. During its implementation learning methods such as
Q&A on the cloud in-depth exchanges and the “branded” project operation mode were adopted to ensure the overall effect of the program
which was well received by the participants.
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“SF Cup” National Job Skills Competition Was Held
To further motivate front-line employees to study professional skills raise service quality and provide quality services to customers SF held the
first “SF Cup” National Job Skills Competition with the theme of “strengthening skills improving quality and providing excellent services”. This
competition was the first one in which the Group coordinated job skills of four positions (pickup and delivery warehouse management drivers
and transit). It adopted the “online + offline” mode with 422000 online participants in theoretical competition and staff participation rate of
72%. Then excellent staff are selected in each region to participate in the skill competition in order to determine the final winner.
“SF Cup” National Job Skills Competition
Educational support
SF supports employees for degree programs and certifications providing reimbursement of learning expenses to help them realize self-development.All qualified employees can choose to the Self-taught Higher Education Examination the National Unified Examination for College Admissions for
Adults or others for on-the-job academic education.The Company actively works with colleagues and universities to help employees pursue further study. In view of skills upgrading the Company
formulated the Implementation Plan of Vocational Skill Level Certification of SF standardized the skills certification mechanism and included various
post-related skills such as forklift operation qualification certificate human resources manager certification examination and PMP project management
qualification certificate into the certification scope thus boosting the long-term development of employees.Junior
Educational background Undergraduate
college As of the end of SF had organized the authentication
of skills certificates of over 11209 employees such as
couriers warehouse operators and operators.Standard for
RMB5000 RMB10000
the financial aid
059Society
Employee Care
SF has established a comprehensive and multifaceted welfare care system covering the special scenarios critical moments and major family affairs of
employees in work and life. SF understands the real needs of employees through multi-dimensional and downward protection and care mechanism
helps employees solve practical problems and enhances their sense of belonging and happiness cohesion and identity.* Subsidies help sympathy festival welfare care are provided such as the Dragon Boat Festival welfare Mid-
Basic welfare
Autumn Festival welfare and Women’s Day care.* P e r s o n n e l s a f e t y c a m p * “Online consultation” * During the period external medical
activities including first aid h a s b e e n c a r r i e d r e s o u r c e s w e r e i n t r o d u c e d i n t otraining free medical care out and “SF Medical Forespace (Fengsheng) platform andCare for and mental health lectures Housekeepe r” ha s WeChat off ic ial account providing
employees’ have been ca r r i ed out s e r v e d m o r e t h a n all employees and their families with
physical and covering more than 160000 75000 people in total online consultation video consultation
All employees
mental health people in . by . convenient medicine purchase health
information and other services. The
number of consultations reached 56000
in .Insurance * Soc ia l insurance for a l l * Commercial insurance welfare for employees in :
benefits employees – Critical illness insurance for 60000 employees at public expense;
– Bonus insurance for excellent couriers’ family member provided to
66000 employees.
Care about new * The manager sends care to and interviews the new employees at key points (onboarding work
employees commencement salary distribution) after their onboarding.* Small fans cool vests and mats are provided for staff in areas with high temperature in summer.* In extremely cold weather employees in high-cold areas are provided with heating neckerchief boiled sweet
Care about potato and ginger soup.couriers * During the peak period of delivery magnetic suction lamp is provided to couriers who work at night.* SF has continued to build a home of employees to help the primary-level employees improve their work and
rest environment and 159 new homes were built during the Reporting Period.Care about mental health
SF cares about employees’ mental health. The Company provides psychological counselling services and psychological knowledge popularization for
employees through various forms including the “Shun Xin Ru Yi platform” “Shunxin hotline” “Online psychological counselling” “Shunxin servicecenter ” and “Gold medal Shunxin Angel”.Mental health activities carried
out include:
Shun Xin Ru Yi platform: More than 882000 visitors. Shun Xin Ru Yi Lecture: A total of 188 lectures were held covering
Shunxin hotline: Online psychological counselling services for more than 320000 people and the satisfaction rate was 4.9 points.
452 people. Psychological counselling of the union: One-to-one service from top
Online psychological counselling: Video psychological to bottom for 594 people.counselling services for 40 people. Online graphic science: Through internal Forespace (Fengsheng)
Gold medal Shunxin Angel: One-to-one counselling services platform service account and other channels 49 mental health articles
for 664 people. were pushed with the page views of more than 200000 times.Shunxin service center: Offline psychological counselling
service for 68 people.
060Society
Care about employees’ families
SF has launched a series of care activities of “thousands of families gain gifts from SF” and “SF Scholarship” to provide corporate welfare for
employees’ spouses and children to enhance their happiness and sense of belonging.* Golden Autumn Subsidies: Employees with serious diseases and their families and families of employees
with major difficulties were helped. In 759 children of employees in distress were assisted and
student subsidies of RMB2.72 million were granted.Offer student subsidies/
* SF Scholarship: The scholarship was awarded to 158 employees’ children who were admitted to
scholarship
universities with a total of RMB240000 in .* Encouragement kits for college entrance examination: SF provided encouragement kits for children of
employees who would take the college entrance examination benefiting 3320 people in .* Online summer camp: Employees and their children were organized to participate in the online summer
camp. They deepened the parent-child relationship through talent show interactive games and
gratitude links with 130 participants and 4.9 points of satisfaction (full score was 5).* Parent-child live broadcast in summer: Professional psychology lecturers were invited to carry out online
Promote family harmony parent-child relationship courses in summer which were watched by more than 58000 people and the
satisfaction rate was 4.9 points (full score was 5).* Gifts for employees’ family members: the Company provided holiday gifts letters from home and
text messages to employees’ family members who are doctors and teachers covering more than 8000
employees in .Care about special groups
SF actively offers help to female employees employees in distress and other special groups takes the initiative to care about employees’ work and life
and lets employees feel the warm care of the Company.* Festival welfare: Provide exclusive gifts and strictly protect statutory parental leave
Female employees
* Maternity welfare: Visit employees who are going to be new parents with maternal and child supplies
Disabled/seriously sick
* Special care: Engage in the employee care group to provide specific employee care and subsidies
employees
* Sympathy and assistance: Offer sympathy and assistance to 16200 employees and their families in
Family in distress distress worth about RMB10 million; of which provide RMB237000 for more than 40 employees who
suffered natural disasters to help them rebuild their homes in Balance work and life
SF carries out healthy and diversified employee activities
to enrich their leisure life satisfy their spiritual needs
and balance their work and life. In the Company
carried out “Fengba” cultural and sports activities
including yoga basketball swimming board games
badminton and boxing covering more than 8000
people at the headquarters. In addition SF carried
out online live streaming topic solicitation theme
videos and other online interactive activities to enrich
employees’ lives. And leisure areas in the office were
set up to help employees adjust their working status.
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Ensuring Safety Production
SF strictly abides by the Law of the People’s Republic of China on Work Safety the Law of the People’s Republic of China on
Fire Protection the Law of the People’s Republic of China on Prevention and Control of Occupational Diseases the Law of the
People’s Republic of China on Response to Emergencies and other laws and regulations. The Company firmly implements the safetymanagement policy of “safety first focus on prevention legal compliance full performance of duties continuous improvement andsound development” and formulates the Company’s safety management principles and policies.Safety Management System
Safety management structure
SF sets up a Safety Production Committee with the COO as the director established a top-down organizational framework for safety management
which clearly defines three-tier management organizations consisting of Headquarters District Department and Primary-level Department and
formulated and improved a series of safety systems to safeguard the Company’s safe production and operations. The meeting of Safety Production
Committee is convened quarterly and at appropriate time upon approval of the director under special circumstances. Key matters related to production
safety are listed on the agenda of the quarterly meetings of the Chief Operating Officer (COO) for regular review on progress.Headquarters Safety Production Committee Designated Safety Management Team Safety Production Execution Taskforce
District
Department Safety Production Committee Safety Production Director Safety Production Execution Taskforce
Grassroots
Department Safety Management Leadership Team Full time/Part time Safety Supervisor
Safety Committee Structure
Safety production responsibility system
SF formulated the Safe Production Responsibility System to stipulate the safety responsibilities of organizations positions and employees at all levels.In particular the CEO one of the members of the Board of Directors is the primary person responsible for production safety of the Company
preventing occupational injury and health damage assuming the highest responsibility for production safety and making commitments to provide safe
and healthy working conditions. At the same time the main responsible persons at each level take full responsibility for regional safety production.
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Safety management system certification
The Company continues to promote the completion of the occupational health and safety management system certification for each business segment.By the end of the Reporting Period a total of 12 companies passed the ISO45001 occupational health and safety management system certification.SF ISO45001 Occupational Health and Safety Management System
Shenzhen S.F. Taisen Holding (Group) Co. Ltd. Shenzhen SF Comprehensive Logistics Service Co. Ltd.S.F. Express Co. Ltd. SF Multimodal Transport Co. Ltd.Shenzhen SF International Supply Chain Management
Zhejiang Shun Feng Express Co. Ltd.Co. Ltd.ISO 45001 Certification
Shenzhen SF Freight Co. Ltd. Zhejiang Shuangjie Supply Chain Technology Co. Ltd.Shenzhen Fenglang Supply Chain Co. Ltd. Guizhou S.F. Express Co. Ltd.GZ SF Pharmaceutical Supply Chain Co. Ltd. Hubei Churongfeng Supply Chain Co. Ltd.Safety Management Objectives
SF sets employee health and safety objectives quantifies work safety The Company performs monthly assessments on the achievement
requirements and drives the implementation of work safety projects. of key indicators such as lost working days per million shipments
In order to achieve the annual safety management objectives we fire accidents on site and shipments on fire and link them with
constantly improve the safety management structure and system build the performance of safety management personnel. In addition the
and implement the safety production responsibility system strengthen Company continues to track quantitative health and safety metrics
safety risk management and control enrich safety publicity improve related to employee health and safety such as personnel safety index
the safety awareness of all employees and minimize safety risks. and number of fire accidents on site. In there was no major fire
accident or significant casualty accident in SF.Safety Management Targets of 2023 2020 2021 Lost working days per
Prevent major fire accidents 77 57 62
million shipments
Number of major fire
Avoid major casualty accidents 0 0 0
accidents on site
Reduce the year-on-year accident rate per million shipments by Number of significant
000
10%. casualty accidents on site
063Society
Safety Management System
In order to further improve the Company’s safe production management system and prevent accidents of production safety the Company revised
the Safety Production Management Manual to strengthen the identification of safety production risks and management capabilities and ensured that
related parties comply with the Company’s safe production management requirements through the Related Party Safety Management Procedures. In
order to ensure the effectiveness of the safety management system SF regularly reviews and revises the safety regulation system and continuously
improves occupational health and safety management systems. In the Company organized internal audits of safety management system
documents in all regions conducted self-examinations of compliance in 58 systems revised the Post Safety Operation Standard Posting and Inspection
System Operational Guidelines for Emergency Handling of Shipments on Fires Regulations on the Management of “Three Systems” for Mails and
Shipments and other systems to gradually improve the safety system.Besides the Company formulated the Safety Assessment and Incentive Management Regulations to clarify the scope and standards of safety
performance assessment for employees at all levels and make the compensation and year-end bonuses of senior management and department heads
linked with safety production performance so as to ensure the achievement of safety management objectives.Safety Risk Prevention
Integrating risk management into all aspects of production and operation SF encourages all employees to participate in risk management activities
such as hazard source identification risk evaluation and risk control. The Company enhances the compliance of production safety from aspects of
safety risk management and control potential danger investigation and management and safety awareness training guarantees the health and safety
of employees prevents injury and death and helps achieve safety goals.Risk identification and control
The Company formulated the Procedures on Hazard Source Identification Risk Assessment and Control Management determined risk evaluation
criteria identified safety management risks related to production and operation activities sorted out and determined the safety risk list conducted
regular reviews of the risk list to ensure that the risk list is up to date and maintained the relevance and effectiveness of risk control measures.Clarify risk management
environment
Risk assessment
Risk identification
Risk analysis
Risk evaluation
Risk response
Key safety risk identification and rectification management process
064
Supervision and inspection
Communication and recordingSociety
The Company formulated the Hazard Source Identification Risk Assessment and Control Management Regulations adopted MES risk assessment
method12 regularly organized regional risk source identification divided risks into five levels on the principle of hierarchical management and control
and business organization settings and defined the subject of risk management and control at each level. In SF organized a risk source
identification exercise identified a total of 954 various safety risks and set signboards of important hazard sources safety risk notification cards and
various safety warning signs at prominent locations to achieve full coverage of safety warning signs on premises equipment and facilities to reduce
safety risks.Risk level MES risk assessment score Risk management and control subject
Level 5 (blue logo) Less than or equal to 18 points Post/employee
Level 4 (blue logo) 20 points to 48 points Post/employee
Level 3 (yellow logo) 50 points to 80 points Distribution hub or service center/station
Level 2 (orange logo) 90 points to 150 points District
Level 1 (red logo) Equal to or greater than 150 points The Group
Remediation of potential hazards
During the Reporting Period the Company organized a number of special remediation operations to address major potential safety hazards
continuously raise employees’ awareness of safety protection and to eliminate potential safety hazards in the Company.Sorting-conveying equipment * The Company carried out a comprehensive inspection of 19 items including the counter-rotation
safety hazards investigation function of the sorting-conveying equipment the lack of protective nets on the bottom rollers
and remediation and the lack of roller guards and promptly resolved all exposed problems.* The Company thoroughly separated pedestrians and vehicles by designating pedestrian lanes
Special program to manage
installing speed bumps warning signs fences or barriers and other equipment and improved the
separation between pedestrians
safety of driving to reduce blind spots in the yard through safety announcements and setting up
and vehicles
convex mirrors.* The Company made clear the requirements and operational standards for the safe operation of
Special program to manage on- drivers and field personnel in the 11 operational aspects of the vehicle from entry to exit and
site driving safety risk stipulated that no operator in the field shall stay in the loading and unloading area or the return
area to achieve zero interaction between people and vehicles in the risk area.* The Company carried out fire hazard investigation and remediation and deployed work on fire
Special program to manage fire safety in several workplaces compliance with fire equipment vehicle fire safety fire safety in
and electricity safety risks charging areas and fire safety training for personnel so as to effectively reduce the occurrence of
fire incidents and ensure the safety of personnel vehicles and express mails.* The Company signed safety management agreements with carriers – to clarify the safety
Special program to manage
management responsibilities of both parties. The Company has signed safety management
driving safety
agreements with all outsourced suppliers with 100% coverage of suppliers.Contractor safety management
SF updated the Regulations on Safety Management of Logistics Suppliers and signed the Safety Management Agreement for Logistics Handling and
Sorting Services the Safety Management Agreement for Cargo Transportation Services by Road and other safety management agreements with
contractors. The Company also refined the safety management content into the contract terms according to specific business scenarios. As at the
end of the Reporting Period the Company has signed safety management agreements with 100% contractors and the Company’s internal safety
management systems and regulations also apply to the safety management of the outsourcing suppliers and their staff. The Company conducted
reviews on suppliers’ qualifications and licenses safety management status insurance conditions and major customers before admission according to
the regulations. We also conducted regular safety inspections during the collaboration.In the Company has signed safety management agreements with 100% contractors.
12 MES risk assessment method: M: Status of control measures; E: Frequency of exposure of person (objects) to dangerous environment; S: Accident consequence. Risk degree
(grade) R=MES
065Society
Technology-empowered Strong Security
By applying technology to empower safety production SF has effectively improved the Company’s safety management capabilities by comprehensively
promoting the digital transformation of the safety management system and establishing a three-dimensional all-day safety monitoring and pre-
warning system.Case: Upgrading “AI ARGUS” to Reduce Safety Violations
Capitalizing on computer vision and deep learning technology “AI ARGUS” comprehensively analyzes key production elements in each scenario forming real-time
dynamic business data covering the entire network. AI ARGUS also effectively safeguards business risk control and production safety through digital means such as
business risk analysis and automated decision-making and improves management efficiency and service quality.SF keeps expanding the scope of application of the AI ARGUS system. In intelligent identification of violations such as personnel on belt conveyors stepping down
to platform against the procedures dressing inappropriately and smoking were realized at all premises an intelligent management platform for high-risk behaviors was
built a work order of safety violations could be generated by docking to the onsite mobile phone APP violations were audited and notified and offending operators
were required to undergo re-education before being allowed to work. During the Reporting Period there was no fatal accident caused by irregularities on belt conveyors.Case: Building a Vehicle Safety Monitoring Platform to Effectively Regulate Safe Driving Behaviors
In SF built a vehicle safety monitoring platform and completed the installation of in-vehicle monitoring equipment on 14054 vehicles
operating on trunk and branch routes across the network. 14 system functions such as risk intervention voice alert electronic accident report
and insurance claim analysis board were put online to dynamically monitor irregular driving behaviors across the network.Safety Training and Drills Safety Training Related Data in SF pays attention to the cultivation of staff’s safety awareness and Total number of employees attending 12374382
safety training
ability standardizes the content of safety training and effectively
enhances staff’s safety awareness and skills; meanwhile the Company Safety training coverage rate 100%
continuously improve the emergency plan system and strengthen the
Certified employment rate of special
work on safety emergency response drills to prevent safety accidents. 100%
equipment
Safety training
Case: A Series of Safety Culture Activities Launched to
SF formulated Regulat ions on Safety Educat ion and Training
Motivate Employees
Management and the Competence Eva luat ion and Tra in ing
Management Procedure clarifying the qualification requirements In the Company launched a variety of safety culture activities for
and conditions for personnel in relevant positions to ensure that they all employees to create a positive safety culture learning atmosphere and
enhance employees’ awareness and skills in production safety.have the appropriate competence. Before employees start work the * The “My Favorite Safety Course” campaign was launched to organize
Company assesses their job competence and provides training on safety the heads of each region to develop safety courses and learn the
management to in-service personnel to continuously improve their Amendment to the Criminal Law the New Safety Law and other
relevant production safety laws and regulations. 1921 training sessions
awareness and competence. were organized in with 73559 participants.* The “Open Class" “Let’s Talk” and “Class Meeting” on production
Safety emergency drill safety were rolled out covering production safety delivery safety
and emergency rescue etc. A total of 1977 learning activities were
organized in with over 480000 participants.SF prepared the Comprehensive Emergency Plan for Safety Production * The Company held safety knowledge competitions and organized the
Emergency Preparation and Response Management Procedure and training for safety managers of the SF operation network with a total
of 9123 employees participating in training and passing exams in .Emergency Plan Management Regulations which have been used as * The “Better Life Starts with Safety” campaign was unveiled to
the guide to carry out emergency handling work and drills in regions. encourage employees to produce short safety promotion videos throughIn the grassroots sites organized emergency rescue drills for the Forespace(Fengsheng) App “SF Facebook". A total of 402 shortsafety promotion videos were collected and awards were given to high-
accidents such as electric shock mechanical injury vehicle injury and quality works.express spontaneous combustion with a total of 1392 drills involving
a total of 118249 participants.
066Society
Building Responsible Chain Together
SF attaches importance to supplier management upholds the core values of integrity and commitment advocates the establishment
of a cooperation environment featuring equality mutual-respect transparency development-oriented win-win consensus and
sunshine; over the years the Company has established long-term stable mutually beneficial and win-win cooperative relationships
with suppliers and partners working together to build a responsible supply chain.Supplier Management System
SF has been committed to minimizing the environmental social and governance risks in the supply chain and continuously
strengthening internal supplier management. The Company has set up a Risk Supervision Organization which is responsible for
risk supervision of the procurement process. The Company also adopts a hierarchical management model comprising the Strategic
Procurement Committee a strategic decision-making organization responsible for decision-making and guidance on strategic
direction; the Routine Procurement Committee and IT Category Procurement Committee responsible for strategy formulation of
procurement activities; and the Procurement Supply Chain Center responsible for procurement decisions execution procurement
demand analysis and supplier management.In SF revised the “Management Regulations on Procurement Suppliers" optimizing and adjusting the division ofresponsibilities of relevant departments supplier classification and grading performance management and routine management
and added new regulations on supplier penalty management and withdrawal management to continuously improve suppliers’ life
cycle management system.Strategic Procurement Committee Strategic decision-making organization:
Decision making and guidance on strategies
CFO CTO
Routine Procurement IT Category
Supply guarantee organization:
Procurement Committee Strategy formulation execution and Committee
control of procurement activities
Procurement Supply Chain Center
Demand initiation organization:
Functions BGs BUs and subsidiaries of the Group Prediction and initiation of
procurement demands
Chart of Risk Supervision Organization Structure
067
Risk supervision organization:
Risk supervision of the procurement process
Procurement
demandsSociety
Life cycle management for SF suppliers
The requirements for supplier access certification are clarified in terms of supplier access channels access conditions certification audit
Access process and risk assessment.accreditation
According to the supplier's cooperation qualification cooperation depth and performance the Company adopts graded and classified
Classification management for suppliers and establishes differentiated and dynamic graded development norms.and grading
The Company establishes a scientific rational and timely performance management and evaluation mechanism implementes quantifiable
Performance performance evaluation criteria and conducts multi-departmental evaluations to promote healthy competition among suppliers.management
Three mechanisms have been established to strengthen the routine management of suppliers: a training and coaching mechanism a
Routine routine audit and inspection mechanism and an information change approval mechanism.management
For suppliers with breach of contract and discipline in the course of business cooperation management measures such as warning fine
Penalty suspension and elimination are imposed with reference to the SF Group Supplier Penalty Management Measures.management
There are two forms of supplier exit management: penalty exit and non-penalty exit.Exit
management
In addition SF has continued to optimize its procurement process management and built the Digital Intelligent Procurement Platform (DIPP) which
covers the life cycle of suppliers and the whole procurement process management to strengthen collaboration and synergy with suppliers and improve
procurement management efficiency.Promoting Sustainable Procurement
SF follows the principles of fairness openness and impartiality. The Company adopts standards of transparent access in the front stage of
procurement a fair process at the middle stage and fair supervision at the back end to ensure a sustainable procurement environment.Supplier management targets of 2023
At the level of intensive procurement SF ensures 100% of suppliers sign terms and conditions on social responsibility integrity and honesty and
confidentiality of information
068Society
Procurement integrity Procurement integrity management measures:
management
In SF updated the Letter of Notification of
Transparent Procurement to further determine the
responsibilities of both parties for joint development
of integrity and the rights they enjoy in order to build
and implement high-standard business ethical practices.Also the Company signed Integrity Agreement with
suppliers prohibiting any form of bribery between the
two sides. Registration Bidding Contract conclusion
In addition the Company will manage the procurement All suppliers are required to Risk control management is The Integrity Agreement shall be signed
make a proactive conflict of carried out in the process of synchronously to prohibit any form of
process online control key nodes through the process interest relationship declaration. supplier bidding and supplier bribery between two parties.affiliation is monitored to
and gradually improve the early warning function of prevent their collusion with Reporting channels should be clearly
compliance and potential integrity risks on the system other SF suppliers. stated before signing the framework
master agreement sub-agreement and
including the risk alert of affiliated relationship and in bidding documents. Any supplier who
finds any bribery or acts by SF’s internal
conflict of interest declaration. personnel or their relatives that affect
fair trading can report and appeal.Responsible procurement
SF has formulated the Regulations on Green Procurement Management to add corresponding environmental protection requirements to the life cycle
management of suppliers and to some extent gives priority to the procurement and use of raw materials products and services that are conducive
to environmental protection such as energy saving water saving and material saving in order to guarantee the implementation of the green
procurement concept.Moreover SF is committed to regulating the behaviors of the suppliers in the areas of environment society and labor rights. The Company is
concerned about ISO certification of suppliers in environmental occupational health and safety and information security-related systems and has made
environmental and health responsibility an important indicator in the regular evaluation and assessment of suppliers so as to promote suppliers to
strengthen their own environmental safety and other social responsibility performance.Supplier Training
SF regularly organizes supplier training to convey the
cooperation concepts of being green and environmental
protection honesty and integrity to suppliers. In the supplier training contained six modules including
qual ity management integrity cooperat ion and
green and environment protection etc. Among them
training on the cooperation integrity module includes
management requirements handling of non-compliance
and complaint and feedback channels to enhance
suppliers’ awareness of integrity and compliance.For key partner suppliers the Company conducted
online training in the form of video and live courses SF’s online supplier training
with 99% sat isfact ion rate of tra ining; for the
full-volume suppliers the Company uploaded training
materials in the form of training announcement on SRM
system (Supplier Relationship Management System) and
notified suppliers of the training course materials and
asked them to download and complete the training by
themselves.
069Society
Bearing Social Responsibility
SF proactively fulfills its corporate social responsibility by supporting public service carrying out voluntary public service activities
in various fields such as medical care education and environmental protection focusing on rural revitalization empowering
agricultural development in rural areas with digital technology securing stable production and supply using its own supply chain
and technological advantages to ensure the rapid delivery of household goods and striving to contribute to the building of a
harmonious society.Practicing Public Service and Charity
In the total annual public service expenditure of the SF Foundation was RMB117.4 million.
22 volunteer associations organized 148 public service activities in total with 7226 participants and 1206286 hours of volunteer services.
Education charity
The SF Lotus Education Assistance Program was launched in 2012 which is designed to build better connections among people and help students in
need to successfully complete their study and grow into wonderful youths with excellent character capable of adapting to social development and
willing to give back to the society.To build better connections among people
help students in need to successfully complete
their education and grow into wonderful young people with
excellent character and rich inner world who can adapt to
Program Objectives the development of the society and are willing to give back to the society.Program Features All-round care from physical to Continuous empowerment and support Guidance on from being helped to helpingpsychological health
Psychology and Health Growth Empowerment and Giving-back-to-society
Support System Development System Linking Platforms
Physical health Psychological health Empowerment Talent development Public service Community and interaction
support support course system system participation · Star of gratitude － model
· Critical illness · Popularization of knowledge · Career planning · On-campus cultivation · Foundation activities
assistance · Philanthropic and Alumni Association
· Psychological assessment · Personal development · Internship and part-time · Featured gratitude
Characteristic · Popularization activities · Provincial and regional organizations
of knowledge · Psychological counselling · Interpersonal relationship
Businesses · Public service · Mutual assistance and sharing · Case support · Career preparation innovation support communities
and Products
Growth map － the record and analysis system for student growth
(Digitally linking the student growth support system to reveal the student’s growth process)
Basic economic security and response to basic needs
Ongoing growth companionship support and psychological guidance and character shaping
(group and social interaction: headteacher programs summer camps sharing sessions)
Basic Businesses
and Products High school student financial aid College scholarship and financial aid
Resource and Cooperating education Other internal and
Fund pool bureaus Cooperating schools Philanthropic studentsSupport external resources
Structure of SF Lotus Education Assistance Program
070Society
In the total investment of SF Lotus Education Assistance Program was RMB31.82 million including RMB29.38 million in scholarship grants.In SF Charity Foundation continued to deepen the implementation of the SF Lotus Education Assistance Program and the overall structure of the
Program was optimized and upgraded in “financial support” “psychological and physical health” and “growth empowerment.Financial Growth Psychology
support and health empowerment
In the SF Lotus Education Collective and social engagement: E m p o w e r m e n t c o u r s e s : 5 3
Assistance Program upgraded its * Headteacher programs – A total of 73 headteachers empowerment course activities
s cholarsh ip d i s t r ibut ion sys tem were arranged in 67 schools in and a total of were conducted in with
which significantly improved the 7 thematic classroom sessions were conducted in the 2454 participants.system’s cash withdrawal experience schools. Empowerment activities: A total
and recognition accuracy rate. In * Dream sharing – A total of 5 dream sharing events of 92 empowerment activities
the Program sponsored 3942 took place in took place in including the
new high school students in need Psychological health: A framework for psychological Village Summer Camp Creative
and a total of 11595 high school support was built and cooperation with universities on Classes Competition and Visit
students were supported throughout psychological support was established. A 3-year study on to School & Exchange Program
the year with RMB24.8 million of the students in the Program was conducted to understand with a total of 700 participants.high school student scholarships the changes in their overall mental health status of and
awarded; and RMB4.59 million of the common health problems faced with by students at
giving-back-to-society scholarships different stages and training on psychological health for
for college students awarded to 1494 school teachers was rolled out.students throughout the year. Critical illness relief: On top of the hardship relief
program applications for major illness relief are open for
Lotus students.In the SF Lotus Education Assistance Program sponsored/awarded a total of 13089 students in need and granted scholarships totaling
RMB29.38 million. As at the end of the Reporting Period the Program sponsored a total of 34094 high school students in need with RMB17254
million and awarded RMB24.57 million to 8155 university students included in the Program.Healthcare assistance
SF Warmth and Care – Children Medical Assistance Program (SF Warmth and Care Program) is committed to promoting early discovery early
treatment and early recovery of child patients aged from 0 to 18 who suffer from relevant diseases. It boosts the physical and mental healthy growthof child patients with supports of medical assistance and humanistic care and contributes to the development of “intra-provincial treatment of seriousillness” and the children medical industry.
071Society
May the children whom SF Warmth and Care Program helped
Program Vision grow up into wonderful young people
Promote early discovery early treatment and early recovery of child patients aged from 0 to 18
Program who suffer from relevant diseases; boost the physical and mental healthy growth of child patients
Objectives with supports of medical assistance and humanistic care and contribute to the development of
“intra-provincial treatment of serious illness” and the children medical industry.Strategic Focus Patient-centric Focus on humanistic care for Focus on the West to help
(Program Mission) protect children’s health a better life promote intra-provincial
treatment of serious illness
A matrix of expenditure for growth support focused on humanistic care
Warmth and Care Growth Companion Medical Support
Warmth and Promoting early discovery Warmth and Care early treatment and early Supporting industry
Care services physical space Growth follow-up Case companion recovery development
Characteristic *Warmth and Care *SF Warmth and Care *Online follow-up *Regular mutual *Congenital heart *Program achievement energy pack Space and feedback assistance and disease screening sharing
Businesses *Warmth and Care *SF care space *Offline revisit and companion *Disease knowledge *Program publicity and volunteer service *SF center follow-up visit *Drawing growth maps popularization linkage
*Warmth and Care *Offline on-spot *Encourage giving *Patient health *Program exchange
joint campaign return visit back to society education meeting
and mutual assistance
A matrix of financial support focused on medical assistance
Medical assistance and orphan care for children with
congenital heart disease hematological disease and malignant tumour
Core Businesses
Medical assistance (self-run): Medical assistance (funding): Orphan care (funding):
14+ cooperating hospitals nationwide Ai You Sohu Siyuanfocus Xiaoshuidi Quanyuan
Program Cooperating Warmth and Other internal and
Resource Support fund pool institutions Medical experts Care volunteers external resources
SF Warmth and Care Program Panorama
In the SF Warmth and Care Program invested RMB50.27 million with 3160 new children and orphans sponsored in the medical
assistance module; and 4420 children and their families served in the six SF Warmth and Care Spaces (small homes) in the humanistic care
module.SF Warmth and Care Program
072Society
In the SF Charity Foundation comprehensively upgraded the Program’s relief management system in the medical assistance module to improve
user experience and the efficiency of relief for children with illnesses. During the Reporting Period the SF Warmth and Care Program provided
assistance to 1849 new children with serious illnesses in 14 designated treatment hospitals directly cooperating with us providing financial support to
3291 people representing a nearly twofold increase in the scale of the Program compared to 2021. The accumulative subsidy for children’s medical
expenses throughout the year was RMB36.01 million a year-on-year increase of 187%. SF also sponsored other public service organizations to carry
out medical assistance projects providing medical assistance to 1311 new children and orphans with serious illnesses with a total of 3160 new
targets of medical assistance increased.In based on a new strategic plan the SF Warmth and Care Program developed its “humanistic care” feature while building a solid foundation
for medical assistance and through a series of warm-hearted care and growth companionship initiatives the Company helped the children supported
by SF Warmth and Care Program grow up into wonderful young people.Warmth and Care Energy Pack Energizes and Delivers Warmth to Children in Need
The Warmth and Care energy pack is a humanistic care product developed by the SF Charity Foundation based on the service concept of SF Warmth and Care Program
which is designed to provide more warm and diversified care and companionship for children in need with the Warmth and Care Energy Pack as a carrier.In the SF Charity Foundation and a well-known school uniform brand jointly launched a New Year’s customized Warmth and Care Energy Pack which includes
new clothes for children and a Warmth and Care souvenir booklet to boost the New Year energy of children in need. The Program is based on voluntary applications
from parents and has delivered New Year Warmth and Care energy packs to 309 “Warmth and Care little warriors” in Shanxi Hebei and Hunan winning praise from
the designated hospitals and parents of the children.Although the child was unfortunate enough to have a congenital heart disease with the generous support from SF Charity Foundation I saw the light in despair and
regained confidence in life from the heaviness and weight at the beginning. For an ordinary family the assistance of SF charity was truly a timely help. The child is
recovering well after the operation and was very happy to receive the Warmth and Care energy pack.–– Parent of a child in illness
In the New Year of SF initiated the Warmth and Care Energy Pack Program to satisfy still battling children’s wish to wear new clothes in the New Year. I felt a
sense of achievement when I saw the smiling faces of the children and the messages of gratitude from their parents. I hope that while these children are fighting the
disease they also know that there are many people who are with them and watch over them and I hope that they will grow up into healthy and good young people.–– A SF Warmth and Care Volunteer
SF Warmth and Care Program
073Society
SF Warmth and Care Space – A children’s playground in the ward
SF Warmth and Care Space a physical space set up by the SF Warmth and Care Program in the Program’s designated hospitals is not only a children’s playground in
the ward and a place for parents to relax and de-stress but also the main venue for the SF Warmth and Care Program to provide in-hospital humanistic care services for
children.In the SF Warmth and Care Space built at the Department of Thoracic Surgery jointly by SF Charity Foundation and Children’s Hospital of Shanxi began to
open fully to children and their parents after a preliminary renovation and trial operation. The space has served children and their parents a total of 1718 times to
comprehensively bolster children’s psychological and physical health and growth through medical assistance and humanistic care as well as warm-hearted services such
as Warmth and Care classes patient education sessions animation showcases parent-child craft workshops and festive celebration parties.Warmth and Care Charity Journey – A loving connection to accompany children with
disabilities
As an important part of the “Humanistic Care – Growth Companion” module of the SF Warmth and Care Program it combined online and offline visits and growth
follow-ups to keep track of the children’s recovery convey goodwill and hope and help the children supported by SF Warmth and Care Program to grow up into positive
young people.For example in August the SF Warmth and Care Program team embarked on a Warmth and Care Charity Journey to Taiyuan Shanxi Province and completed
online and offline follow-up visits to 141 families. Through this charity journey the Company not only delivered warm-hearted care to children and parents but also
established a deeper connection with them laying a solid foundation for the implementation of long-term growth companionship.
074Society
Blood donation
Up to the SF Charity Foundation in collaboration with volunteer associations in various business districts has organized 36 “SF Blood Donation Day” blood
donation events of three phases in 22 cities with 2668 participants and over 720000 ml of blood donated.
075Society
Fueling Rural Revitalization
SF is the first domestic logistics company to deliver fresh agricultural products directly from farmers to urban consumers in the form of express
delivery. Since the inception SF has established a business model for delivering agricultural goods directly from “farms” to the end-consumers. For along time many high-quality agricultural products have encountered problems in the delivery process such as “vulnerability difficulty in packagingtoo many links and impossibility of forming scale effect”. The Company is also faced with marketing-related problems such as limited number of
channels available single form limited target audience size and limited branding effect. For many years farmers have been struggling to increase
their income but found it practically impossible to achieve profitability by selling agricultural products. SF adhered to the farmer assistance concept of
distributing quality agricultural products across the country and promoting good brands of agricultural products.By building collection points for agricultural products around the fields developing and investing in mobile sorting vehicles for small batch distribution
building fresh product pre-processing centers close to the place of origin designing exclusive packaging for many fresh product categories deploying
special refrigeration vehicles exclusive cargo aircraft and a variety of transport resources during the harvest season of special agricultural products the
Company continues to refresh the delivery speed of agricultural products in the process of circulation and innovate the means of preserving freshness
in the process of delivery of fresh products to help farmers deliver quality agricultural products from the fields and out of the mountains directly to
thousands of families.With its strong logistics network advanced packaging technology and fast delivery capabilities the Company has overcome the most difficult
categories one by one in express transportation such as hairy crabs beef and mutton live fish seafood lychees cherries strawberries peach and
matsutake mushrooms to achieve a nationwide direct delivery model of agricultural products with unique Chinese characteristics. The Company
continues to expand its service categories and business scenarios through initiatives such as logistics model innovation cost reduction and efficiency
enhancement and pricing close to the market. At the same time through technology empowerment the Company has researched and input
convenient technology tools such as fruit wrap harvest and one-piece delivery to help farmers operate in a one-stop convenient and efficient manner
for sales delivery and settlement.The year marked the comprehensive promotion of rural revitalization. In order to actively support the national strategy of rural revitalization
continuously consolidate and expand the poverty alleviation results and effectively connect with rural revitalization in addition to express and logistics
services the Company also cooperates with local governments to build regional agricultural brands and help branding so that more local brands
of special agricultural products can be known tasted and recognized. In the Company formulated a special fund subsidy mechanism for the
customization of regional brand packaging materials invested RMB3 million and also linked up with local governments to obtain brand authorization
and design brand packaging helping to build a total of 16 regional brands of agricultural products generating over RMB500 million of incomes
for local farmers. In addition SF responded to the concept of green logistics piloted green packaging materials for agricultural products and also
provided a series of scientific and technological services such as product traceability and pesticide residue testing which were well received by users.At present the Company’s service network to help agricultural products on the market has covered more than 2800 county-level cities across the
country serving a total of more than 4000 fresh varieties achieving the delivery of 3.62 million tons of special agricultural products in and
expected to help farmers generate more than RMB100 billion.
11000 tons
2.20 million shipments
Shaanxi fresh dates Chagan Lake fish
Shaanxi kiwifruit Jilin ginseng
Xinjiang dried fruits
Donggang strawberry
Xinjiang fresh fruits
Gansu wolfberry Inner Mongolia beef and mutton
Xinjiang medicinal herbs Gansu apples Beijing juicy peach
Gansu beef and mutton Dalian cherry
Ningxia beef and mutton
Yantai cherry
Ningxia wolfberry Shanxi apple
Qinghai Golmud wolfberry
Ningxia fresh dates
Rushan oyster 44000 tons
12.77 million shipments
Tibetan cordyceps sinensis Hairy crab (nationwide)
Sichuan orange Anhui herbal medicineHubei orange
Yangshan peach
Sichuan pomegranate Anhui tea
Hubei crayfish
Sichuan cordyceps sinensis
Xianju waxberry
Fuzhou tea
Quanzhou tea
Yunnan matsutake mushrooms
Xiamen seafood
Guangxi dragon fruit
Yunnan coffee
Dongguan durian
Guangxi orange
East Guangdong pomelo
Hainan mango
West Guangdong longan
South Jiangxi orange
West Guangdong lychee
West Guangdong seafood
076Society
Case: SF Develops Exclusive Logistics Solutions to Help the Development of the Yangcheng Lake Hairy
Crab Industry
By virtue of its strong supply chain capabilities professional cold chain
temperature control technology and the advantages of its nationwide resource
network SF helps Yangcheng Lake hairy crabs move safely quickly and freshly
to consumer families across the country with customized and exclusive logistics
solutions helping Yangcheng Lake crab farmers and merchants increase their
income and achieving win-win social benefits and local economy. In SF
deployed 13 charter flights for “hairy crab” transportation and has mobilized
reserved airport storage space resources in Nanjing Wuxi Hangzhou and other
surrounding cities to make full use of transportation capacity resources in theYangtze River Delta economic circle and fully roll out the “air/high-speed rail +hairy crab” cross-city exclusive urgent delivery services achieving cross-city
delivery in as fast as 4 hours.Case: Yunnan SF’s “Ten Cities Ten Thousand Stores” Boosts Local Tourism Economy
In July SF launched its “Ten Cities Ten Thousand Stores” program in ten major tourism cities in Yunnan Province including Kunming Dali Lijiang Xishuangbanna
Shangri-La Jianshui Mile Tengchong Chuxiong and Yuxi. By investing end-of-line resources such as SF city stations and service centers SF has been able to meet
the delivery needs of tourists while injecting new momentum into the local tourism economy. By continuously extending its express delivery network SF has brought
convenience to the rural life of Yunnan people and has also greatly contributed to the “Yunnan products out of Yunnan” driving the high-quality development of rural
e-commerce and highland specialty industries.SF Courier Collects Highland Specialties from Lijiang Ancient City Zhongyi Market Souvenir Shop –
Consumer Poverty Alleviation Supermarket SF Cooperation Point
SF Customizes Packaging Boxes for Shangri-La Matsutake Mushroom SF’s First Charter Flight for Pu’er Tea
077Service
Theme: Building Digital Ecology
Creating Digital Intelligent Future
Innovation-driven Development
Securing Safety Delivery
Building Quality Services
SERVICEService
Building Digital Ecology Creating
Theme Digital Intelligent Future
In the digital and intelligent era technology-enabled logistics and supply chain services form an important link between the
virtual and physical worlds. Digital and intelligent technology builds a digital information value chain on the logistics value chain
of the physical world. In this context SF has been accumulating strength in the practice of digital and intelligent transformation
starting from the scenarios and needs from the inside out and from the present to the future to usher in the age of digital
intelligence. The efforts made by SF in the digital and intelligent transformation not only meet the needs of its own development
but also promote the ecological partners to accelerate the entry into the digital and intelligent era. It not only complies with the
requirements for digital intelligence of enterprises in the market but also undertakes the social responsibility and mission that
should be undertaken by service providers of important economic and social infrastructure.Digital Intelligent Logistics Performance Service
With the increasing demand of customers for high-quality logistics services they have put forward new requirements for digital intelligent logistics
performance services from the three levels: timeliness cost and service. Thanks to its independent and controllable logistics network SF responds to
the differentiated demands of customers through corresponding system development and digital intelligent customized transformation of specific links
based on the scenarios and needs of all kinds of customers in the full-link logistics distribution and provides high-quality express delivery and other
logistics performance services for all the enterprise customers in various industries.Case: Document Life Cycle Management Solutions
To meet the special document needs of customers in the professional service industry (such as accounting and law firms) SF has customized and developed a one-stop
document logistics solution.Based on the document processing scenarios of the professional service firms SF Technology provides customers with a set of management system for the life cycle of
document processing covering functions such as data collation generation internal approval mail sending confirmation return sorting return scanning information
collection data archiving etc. which supports whole-process closed-loop management of document processing. This system works with the document express delivery
service provided by SF building a standard technology-based document logistics solution.After the launch the program can take into account the requirement of customer correspondence for timely delivery the cost control requirement of the process and
the regulatory requirement and achieve 100% digital management in the whole process of document delivery service. Meanwhile the program has helped customers
increase their per capita efficiency by 125% and reduce labor cost by 87% providing a new idea for the industry and setting an excellent example.
079Service
Digital Intelligent Supply Chain Integrated Services
At present traditional supply chain service management is still exposed to many challenges such as high warehouse allocation cost difficulty in
coordination of inventory allocation fragmentation of online and offline data and lack of forecasting system. As a third-party logistics service provider
providing digital intelligent supply chain integrated services SF delivers scenario-based integrated flexible and full-chain service solutions catering for
the special needs of various industries by leveraging on big data cloud computing the Internet of everything artificial intelligence and other vertical
technologies.Case: L aunching intelligent supply chain integrated solutions to propel enterprise transformation and
upgrading
One of SF’s customers is a leading player in lighting and has several warehouses across the country and sells over 10000 types of SKUs. The enterprise hopes to
continuously improve the experience of end consumers while reducing operating costs.From the perspective of integrated supply chain optimization SF proposed an integrated intelligent supply chain solution including warehouse network planning
intelligent replenishment and allocation of inventory transportation planning and packing box recommendation.Warehouse network planning SF sets the order timeliness and cost reduction goals and provides national warehouse network layout optimization plan by combing
and analyzing the data of operation cost structure historical orders as well as relevant business constraints and rules. Also the Company optimizes the delivery rules for
warehouse orders and improves efficiency and reduces cost from an overall perspective.Intelligent replenishment and allocation of inventory SF conducts data full-link analysis of customer business builds visual intelligent allocation management
system forecasts and analyzes of sales orders and outputs reasonable purchase plan and multi-warehouse replenishment and allocation plan through the integration of
big data technology and operational experience so as to help enterprises reduce cross-warehouse delivery problems reduce transportation costs improve order delivery
time and improve customer satisfaction.Transportation optimization SF provides customers with actionable systems and business process solutions of “cargo loading route planning vehicle schedulingand transportation visualization” through intelligent algorithm system integration and lean operation taking into account cost optimization and business efficiency.Based on customer needs SF optimizes transportation costs globally and customizes overlap routes sequences models and other suggestions based on customer order
structure to help customers improve transportation timeliness and reduce operating costs.Packing box recommendation Through intelligent packing optimization algorithm SF matches the best packing type for each order and assists operators with efficient
packing through 3D view so as to solve the problems of low packing capacity high packing material cost difficult internal and external account checking and low
satisfaction of downstream customers in the process of warehouse packaging and delivery.With the program put into practice the Company helps customers reduce millions of cost annually and improves the average delivery time required and the order
fulfillment rate. The customer’s end consumer experience and satisfaction are also greatly improved.
080Service
Digital Intelligent Technology Service Products
At present many enterprises are facing the challenge of digital intelligent transformation of business and management. Based on the technological
capabilities and products accumulated in the process of digital intelligent logistics network construction SF has developed standard tools solutions
and service capabilities applicable to the transformation needs of multiple industries especially fields of big data and Blockchain artificial intelligence
and unmanned technology.Case: Using cross-cloud data lakes to reduce the management cost of multiple data operation centers
A multinational enterprise has accumulated massive data but the data timeliness and accuracy cannot be guaranteed due to unstandardized
business system data and poor data management. In order to enhance business competitiveness and refine management the customer has put
forward urgent demand for data capability and value utilization.SF helped the customer establish a hybrid cloud data lake across multiple centers in China (SF Cloud) and Singapore (GCP) and solve the issues
of unified management of international big data converged computing and security compliance
One-stop stream-batch integration IDE
Big data resource
scheduling engine
Real-time Off-line
calculation calculation Data warehouse Machine learning
Peak computing Flip
resource is expanded to
the public cloud
Hybrid cloud data lake
East Asia data center European data center North American data center
Cross-border Cross-border
waybill waybill
Financial data Financial data
Private data Private data
User data Business User data Business User data Business
data data data
Local IDC Huawei cloud AWS GCP Azure Ali cloud Tencent cloud……
Heading towards a digital intelligent future SF will based on the fulfillment service capability of the logistics network combine its business
advantages with the digital intelligent technology capability accelerate the improvement of operation and management efficiency and further
improve the comprehensive logistics service and integrated supply chain service capability so as to explore more possibilities of data technology.Furthermore digital intelligence will further consolidate the timeliness stability and quality reputation of SF in logistics performance service promote
the improvement of industry operation efficiency achieve deep integration with the value chain of the real economy and help the transformation and
upgrading of the real economy.
081
Public
cloudService
Innovation-driven Development
Improving Innovation Management
Innovation is the soul of enterprise progress and development. SF is highly concerned with innovation research and development dedicates itself to
transforming innovation into positive enterprise productivity and encourages employees to create value for the Company in new and exciting ways.The Company has set up a sound innovation management mechanism to continuously inject impetus into the company’s technology-enabled actions.Technology Innovation Achievements
As of the end of SF has obtained and applied for 4452 patents and 2490 software copyrights among which the number of invention
patents accounted for 64% of the total patents.Since 2016 SF has set up an innovation mechanism – Innovation Workshop to promote innovation from idea to practical application. At present it
has realized a closed loop covering innovation cultivation generation and implementation.SF has been constantly optimizing the innovation mechanism and improving the efficiency of organizational innovation. In SF carried out 6 live
courses of innovation workshops 12 selective micro innovation reviews and 4 Innovation Pioneer Award reviews and set up semi-annual innovation
achievement awards to continuously stimulate employees’ innovation vitality. During the year 1650 innovative achievements were produced and the
employee participation rate reached 70%.Innovation cultivation Innovation generation Innovation implementation
Innovation acceleration Innovation research center Innovation lab
Innovation Workshop Brainstorm Micro-innovation
Input innovative thinking and Brainstorm and generate Showcase platform for small
tools cultivate innovative innovative ideas or solutions innovative tools/meth-
ability stimulate innovative for sore points in business or ods/technical works with
thinking and master technical scenarios slight application effect or
innovative tools/methods value output
Innovation Mechanism of SF – Innovation Workshop
082
Innovation process Operation mechanismService
Creating Smart Logistics
Staying true to the concept of “technology transforms logistics logistics transforms lives” SF
constantly improve digital intelligence of the logistic network. Through digital full-chain operation In total R&D amounted to
covering pickup and delivery transit and transportation SF achieves intelligent global planning
and scheduling dynamic resource matching and flat efficient management in combination with
big data forecasts and visual monitoring and early warning. While integrating AIoT automation RMB3.53 billion
and unmanned technologies SF raises the network operation efficiency ensure delivery service
security and drive the Company’s cost reduction and efficiency reinforcement.Achieving digital and intelligent planning and scheduling: SF built a global intelligent decision-making system of “prediction → warning →scheduling → feedback” based on big data operation research and artificial intelligence.* Proactive forecast: In due to the uncertain changes in the external environment it was difficult to refer to the historical performance.SF continued to improve the granularity accuracy stability and timeliness of the forecast adding new forecast business scenarios exploring
and applying the site shift prediction with finer granularity to support refined operation. By accurately and promptly refreshing the forecast
cargo volume of peak periods and holidays SF helped all links such as sites transportation capacity and network make resource planning
and reserve in advance improve the precision of resource investment and improve business profitability during peak holidays. The prediction
accuracy of the next day pickup and delivery of the whole network reached 97% and the pickup and delivery accuracy of the business region
level exceeded 90% for the November 11 Campaign. The Company updated the forecast every 2 hours through dynamic prediction and gave
early warning to the shifts that exceed the site processing capacity thus helping the site and vehicles in transit adjust in time and guarantee
the service quality.* Network planning: SF creates intelligent network planning system tools to support the rational planning of resource investment for
operation and achieve cost reduction and efficiency improvement. In the total cost was reduced at the scale of 100 million and
efficiency was improved for tens of millions of shipments. In terms of trunk lines SF supports the planning and arrangement of direct delivery
and frequency raising through line optimization tools and guides the accurate matching and execution of resource planning by combining
with the financial calculation of daily and peak line investment strategies. In terms of branch lines SF has realized application of digital
intelligent tools in the whole network to branch lines planning and added online applications covering holidays characteristic economy and
other scenarios. In terms of air transportation SF has rolled out preliminary research on the flight plan/ULD movement/ULD loading model for
the first time and applied them to the November 11 peak.* Real time scheduling: Through real-time linkage of grass-roots operation positions tens of thousands of trunk and branch line vehicles
thousands of air/railway lines and other resources SF has established online exception monitoring early warning and rescue system covering
the whole process of transportation transfer and delivery to ensure the timeliness of packages that may be delayed and realize the online
closed loop of exception monitoring and scheduling processing in the whole process. A daily average of 260000 shipments were saved from
delay during weekdays and 900000 shipments during peak days.Achieving digital and intelligent transit: SF is committed to building an automatic visual and intelligent distribution hubs and creating an efficient
intelligent logistics site.* Automation: In SF completed the investment and upgrading of automatic equipment in 47 distribution hubs increasing the capacity
and efficiency of transit processing. By the end of the Reporting Period the automatic sorting rate of small parcels exceeded 86% and the
automatic sorting rate of unbagged shipment (parcels without collective packaging processing required) exceeded 60%.* Intelligence: SF has built a system chassis-system of “planning-driven sorting plan and dynamically adjusted sorting plan” to break
through the barriers between planning and actual sorting operation by digital and intelligent means so that planning can better guide
actual production. The Company has realized online dynamic adjustment of sorting plan to achieve faster and automatic adjustments of
sorting plan. After the system was put into use the average time of sorting process has been reduced from 30 minutes to 2 minutes the
transport to wrong transit destination has been improved by 36.28% and the return rate by 47.42%. In addition based on the site capacity
calculation and delivery volume prediction information SF gives early warning to the shift overcapacity of the transit site assists the site in
avoiding the warehouse capacity depletion risk in advance and guaranteeing the transfer time. During the November 11 Campaign 60.2% of
the shifts achieved outperformance in accurate early warning in advance.* Visualization: Through computer visual technology SF carry out video tracking and operation monitoring realize visual traceability of the
whole process and help solve the quality management and safety risk control problems of the transit sites.
083Service
Achieving digital intelligent transport: SF constantly improved the end-to-end digital management with information technology for air land rail
and other transport modes.* Air transportation: Focusing on online resource management SF has built resource pool realize resource sharing and exclusive emergency
dynamic booking and provide online support and performance guarantee for operation modes with multiple products and at different
guarantee levels. In addition SF cooperates with Shenzhen Airport to carry out a pilot program of “One code for freight” to jointly improve
the digital air cargo logistics.* Road transportation: Through intelligent vehicle scheduling driver efficiency reform and refined fuel consumption control SF maximizes
the application of self-operated resources and improves the utilization rate of self-operated resources. By virtue of intensive recruitment of
outsourcing resources online operation of the whole process of margin scenarios simultaneous bidding of various resources and intelligent
route combination tools SF supports the common procurement of various business areas improves the bilateral trunk shipping rate and
reduces the external transport cost by more than RMB100 million. By establishing a normal transportation timeliness management and
control mechanism SF realizes the full-link and closed-loop time efficiency management and control of the transport and improves supplier
satisfaction and transportation timeliness.* Railway transportation: In the express business SF has realized online closed-loop operation for the whole process from resource demand
to settlement across high-speed railway ordinary train and freight train. In the bulk transport business the Company participated in the
third batch of multimodal transport demonstration projects of the Ministry of Transport and became a private enterprise supporting railway
transport from pickup and delivery demand to settlement.Digital intelligent terminal management: Based on the dynamic digital map for area of interest (AOI) technology the Company realized the
comprehensive digital operation and online management of terminal pickup and delivery.* Improvement of pickup and delivery capacity: SF is committed to improving the problem diagnosis and resource investment model of the
pickup and delivery regions achieving intelligent output of better strategies and schemes and improving the problem improvement rate. The
areas adopting the schemes recommended by the system witnessed an improvement rate of 22.65% in delayed pickup 30.62% in delayed
delivery and 52.57% in pickup reminder. The Company has built and improved the SOP platform promptly updated the pickup and delivery
operation standards and improved the speed of new hands to get started. SF has built a courier service quality evaluation model with online
quality scoring and visual quality control achieving fair and transparent management. In addition the Company has built package delivery
models based on customer preferences order attributes regional characteristics and other factors to help packages match the optimal
delivery channel and achieved differentiated terminal delivery in line with customer needs so as to improve customer experience.* Terminal network construction: SF upgrades the operation tools and management tools of the outlets to reduce the labor intensity
and customer meeting time of couriers reduce the damage rate of the package and support the comprehensive outlets in simultaneous
operation of large and small parcels. Through the online closed-loop management of underperforming outlets SF identifies and rectifies
underperforming outlets in time to realize site cost saving.Industry-university-research Cooperation
SF is committed to deepening the cooperation between industry university and research. The Company has established cooperative relations with
many universities and research units and carries out cooperative research and development in various technology fields such as intelligent logistics
supply chain operation research etc. so as to enhance the innovation ability of the Company.Case: Joining hands with universities to develop digital intelligent technology
SF has established cooperation with 17 top universities at home and abroad such as Tongji University Zhejiang University and Harbin Institute of Technology. Focusing
on the three key technical fields: operation research digital twinning and blockchain and privacy computing SF has selected leading universities to carry out all-round
and multi-form cooperation in scientific research talent base construction and recruitment and branding activities.* In SF continued its strong partnership with Zhejiang University to jointly organize
Creation π – the Second Intelligent Logistics Application Innovation Competition. High-quality projects in the contest such as “comprehensive solution for intelligent unattendedwarehouse” and “SMART packaging carbon neutrality” have been put into practice and
included into the business achieving the improvement of digital intelligent business
scenarios and injecting innovative vitality into the Company’s development.* SF hosted the logistics and supply chain industry operation research and optimization
technology exchange summit for the first time gathering professors from 5 top universities
in the field of operation research including Tsinghua University Tongji University
Zhejiang University Beihang University and Shenzhen University driving exchange on
the application of high-quality technology which was well received by the industry and
academia. It has been widely discussed among experts in vertical fields university talents
and the industry significantly enhancing SF’ influence in the field of operation research
optimization.* In SF collaborated with the School of Software of Harbin Institute of Technology on
Second Intelligent Logistics Application
a corporate mentorship program. The program consists of a technical experts from SF as
mentors and groups of current computer science students to promote technical exchange Innovation Competition
by conducting daily dialogues lectures and group research seminars.
084Service
Securing Safety Delivery
The safety of delivery service is a matter of public security and the safety of information and property of the public. SF strictly
complies with the Measures for Supervision and Management of Posting and Delivery Safety in the Postal Industry and constantly
improves express mail safety management by reinforcing the management system implementing real-name authentication and
strengthening the control of illegal and prohibited articles to ensure the safety of mail delivery.In the Company revised its management system such as the Operation Procedures for Real-Name Pickup and Delivery
Reward Mechanism for Self-Inspection of Illegal and Prohibited Articles Special Plan for the Control of Illegal and Prohibited Articles
and Regulations on Operation and Management of Battery-Contained Shipments to further improve the safety management of
delivery service.Real-Name Authentication Management
SF strictly implements real-name registration and management and promotes the effective implementation of the real-name authentication system
from the dimensions of process implantation system enforcement and assessment and monitoring to ensure the safe and compliant delivery process.* “Online Real-Name” prompts and real-name authentication links have been added in the WeChat
applet and APP order pages to guide customers through real-name authentication before placing
orders;
Process implantation
* The real-name information of credit account customers (corporate customers) is regularly checked
to make system prompting changes for incorrect data and improve the accuracy of real-name
information.* ID card real-name information manual entry function is used offline and only the OCR/NFC method
System compulsion can be available for automatically identifying the customer ID card which significantly reduces the
real-name information error collection.* The problem of inaccurate information when clients use foreign passports for real-name
authentication is exported to the relevant region through daily reports for follow-up improvements
and solutions are made in parallel;
Assessment and monitoring
* Cause analysis is carried out on the data of abnormal real-name notifications of enterprises
monitored by the State Post Bureau and the problems are simultaneously exported to the region in
the form of daily reports for improvement.Management of Illegal and Prohibited Articles
SF regularly carries out special rectification on delivery safety continuously strengthens the management of illegal and prohibited articles reduces
transportation of illegal and prohibited articles on all fronts safeguards public security and protects customers’ rights and interests by reinforcing staff
training and developing incentive mechanisms for safety checks of illegal and prohibited articles.Delivery safety rectification
In the Company carried out special activities such as “drug control” and “dangerous chemicals control” while effectively preventing the entry
of illegal and prohibited items such as firearms and explosives drug-related items hazardous chemicals and illegal publications into the delivery
channel through training on delivery safety signing of a delivery safety responsibility certificate and establishment of a special improvement and
supervision team.
085Service
Inspection and management of prohibited articles
Safety inspection of prohibited articles is a necessary means to ensure safety of SF customers and the public. In SF starting with order
placement collection transit and other delivery links created a closed loop for the whole process of inspection and management of prohibited articles
to protect customers’ rights and interests.Placing Order Collection Transit
The prohibited item bank was optimized. For customers who have a record of Through multi-dimensional analysis of
Customers will be informed at the point of sending illegal and prohibited articles express package flow and product name as
order placement that prohibited items they will receive an additional reminder well as blacklist database early warning
cannot be shipped; when they place another order and information of suspected illegal and
couriers will pay special attention when prohibited articles will be sent to the
n response to special circumstances such receiving and inspecting their packages to security inspectors in transit sites
as temporary regulatory controls ensure that it meets the delivery prompting them to strengthen the security
restrictions are temporarily added to the standards. inspection of the express package.system and timely alerts are given to
customers when they place orders. Through the input of high-speed security
machines security machine AI judgment
technology security inspectors are assisted
in identifying security pictures; for
suspected illegal and prohibited articles
security inspectors will be warned to
conduct a second review.Training on identification of prohibited articles
In order to improve the ability of staff to identify illegal and prohibited articles SF proactively organizes training for grassroots staff to identify illegal
and prohibited articles. In the Company organized security inspectors to attend training to improve their professional capacity. In addition the
Company regularly promoted training materials conducted training for regional functionaries and first-line and second-line staff with a total of about
40 training sessions hosted and put up posters on “drug control pornography clearance” and other illegal and prohibited articles to strengthen
prevention awareness.Digital intelligence management for delivery safety
SF applies big data AI Blockchain and other technologies to intelligently capture safety risk factors and improve delivery safety.* Intelligent mining of shipment safety risks: Through big data mining and analysis SF locates specific factors of damage and loss and has built
an express safety control system covering 10+ safety control scenarios. The Company tracks black spots data (referring to the collection
of express package data for damage and loss scenarios) of relevant risk routes sites and intelligent IoT devices in a closed-loop manner to
improve the loss warning process locate high-risk links and operations for damage.* Smart security check: The first large-scale application of the code binding achieves the full-chain data traceability. At the same time through
AI to reduce the manpower input of security inspectors the rate of prohibited articles detection and release error rate both outperform
traditional security checks.
086Service
Building Quality Services
Based on its mature and efficient express network SF has built up its logistics ecosystem through internal cultivation and external
mergers and acquisitions expanding new businesses and integrating outstanding business partners to gradually become China’s
No. 1 express logistics service provider covering time-sensitive express economy express freight cold chain and pharmaceutical
transport and SF rush international express international freight and agency and supply chain business.Meanwhile the Company has improved its product matrix vertically and through various modes such as direct operation
franchising and external cooperation. SF has introduced high-quality services in each business segment to meet the requirements
of the mid-to-high-end market as well as cost-effective services to meet the needs of the “low-tier market”. Through developed
product layers and the various combination of different products SF is able to meet the diversified needs of the customers and
form complete end-to-end one-stop integrated logistics solutions.The Company’s services have penetrated into various fields such as industrial manufacturing commercial distribution commercialize
agricultural products food and pharmaceutical cold chain international trade and local life services covering all aspects of social
production and people’s life. At the same time SF actively embraces new industry dynamics and new trends helping the clients
innovate their business models and enhance consumers’ perceptions and experiences and practices as a transmitter and guardian
of a beautiful life.After thirty years of dedicated management SF has enjoyed wide acclaim and popularity in the industry establishing a brand
image of being “fast” “punctual” and “safe”; the quality services have shaped good brand value which are widely recognized by
customers the industry and society.Enhancing Customer Experience
SF is committed to providing quality products and services continuously optimizing service processes and standards and enhancing customer
experience.Targets of Progress in Targets of 2023
The customer complaint The customer complaint The customer complaint
Customer Service service dissatisfaction13 is lower service dissatisfaction was service dissatisfaction is lower
than 5% 4.8% in than 5% in 2023
Improving customer service system
SF strictly abides by the Law of the People’s Republic of China on Protection of Consumer Rights and Interests and continuously improves the service
quality. In the Company further improved its customer service system including the Reward and Punishment Rules for Customer Service the
Abnormality Handling Mechanism for Time-Effective Category the Differentiated Customer Services and the Guidelines for the Control of Internet
Public Opinions and Complaints to strengthen customer service management and continuously improve customer experience.
13 Customer complaint service dissatisfaction is derived from the customer satisfaction rating for the handling of their complaints i.e. the number of customer dissatisfaction
with the handling of complaints/total number of customer complaints.
087Service
Digital and intelligent customer experience
SF has built an enterprise customer service and product platform to expand business operations and service scenarios and achieved 99% self-service
docking for enterprise customers; the Company has achieved digital upgrading of logistics product management through data and online means to
assist product competitiveness.The Company by applying a one-stop claims settlement operation platform accumulated claims data built a self-service claim settlement model and a
claim settlement solution model to achieve unmanned and intelligent rapid claims processing and enhance customer claim settlement experience. The
customer satisfaction rate for self-service claim settlement is 98.7% and the processing time efficiency is 98% higher than that of manual claims.In terms of active customer service the Company has taken the initiative to explore new service scenarios such as pre-dispatch appointments
abnormal piece handling and intelligent outbound calls through AOI areas customer behavior data models and iterative optimization of AI capabilities
to achieve refined and differentiated customer services.Customer satisfaction survey
The Company actively conducts surveys on the customer satisfaction fully listens to the voice of customers and implements service improvement
measures. In the Company conducted satisfaction and NPS survey on a quarterly basis to identify customer service weaknesses in six dimensions
including delivery timeliness package safety pickup and delivery services sales services post-sales services and system services analyzed and dug out
existing problems and took timely and effective improvement measures to continuously improve service quality and customer experience.In SF broadened the channels for customer demands and complaints and responded to customer requests in a timely manner with a
customer-centric and solution-oriented approach. In addition to accepting customer requests through hotlines online platforms and official websites
the Company proactively monitored external social media opinions and dealt with negative voices in a timely manner.Customer Privacy Protection
SF scrupulously complies with the Personal Information Protection Law of the People’s Republic of China and has laid down internal regulation systems
such as the Regulations on Privacy Data Security Compliance Management; SF implemented full-link customer data security and protection strategies
around the “placing orders pickup and delivery transit after-sales and operation” in business flow and the “collection transmission storageprocessing exchange and destruction” stages of data life cycle.In the Company continued to promote the encrypted privacy waybills and the hidden digits of the customer’s phone number were increased
from 4 to 6 digits. Simultaneously SF also supports customers’ differentiated privacy protection needs by protecting their name and address
information in a bid to comprehensively protect customer data and privacy security.Service Placing Order Pickup and delivery Transit/after-sales Operation
Through the promotion of For sea led documents Data desensitization and Encrypted storage and
State Post Bureau’s Anyidi such as tender documents i n t e l l i g e n t o u t b o u n d transmission are used
Real-Name QR Code and the SF and personnel files it is cal l to customers with t o e n c r y p t c u s t o m e r
Real-Name QR Code customers forbidden to unseal and a desens i t ized number information stored in the
are guided through online inspect the envelope and d i s p l a y e d o n t h e c a l l business systems and big
Protection
r e a l - n a m e a u t h e n t i c a t i o n by taking and uploading interface or the customers data platforms to realize
measures
on their own before placing photographs of the outer directly called by the back cipher text transmission
an order and information is packaging it is ensured office are used to keep during data transfer.collected by means of a virtual that the package is sealed customer phone number
QR code at the delivery site. and intact before it is confidential.sent.
088Outlook
Outlook
The extraordinary year of is full of challenges. Despite a complicated and harsh external environment SF has always remained
unyielding while embracing difficulties and challenges. The Company takes the initiative to take responsibility in environmental
social and governance while pursuing high-quality development. By capitalizing on its outstanding efforts in improving the
environment protecting employees and supporting the community SF was included in Fortune’s first list of China’s ESG influence
marking the only express and logistics enterprise in the list.
2023 marks the 30th anniversary of the founding of SF. Over the past three decades SFers have remained steadfast in taking the
lead and making unremitting efforts turning a startup with only a few dozen employees into a comprehensive express and logistics
service provider across the world. Over the past three decades SFers have worked hard unswervingly and broken new ground
while maintaining stable development. From manual delivery to a widespread and sophisticated transport system SF has gone all
out to develop intelligent logistics by virtue of digital intelligent technologies. Three decades of endeavor and growth have shaped
into the philosophy imprinted in SFers’ mind that only by holding fast to long-termism sustainability and healthy development can
the Company build greater success and win a beautiful future.Who fights the hardest through adversities can take the lead and cohesion and unity will open up a remarkable road towards
stable development. In the 30 years of age SF will be even more confident and persistent in responding to the new trends around
the chain reconstruction network optimization ecological reintegration and operation upgrading. SF will put continuous efforts
in promoting the construction of a green logistics system improve employee welfare and care and fulfill social responsibility. As
guided by the goal to become a benchmark that consistently delivers remarkable social value SF will give an inexhaustible impetus
to the sustainable development of the society.
089Appendix
Appendix
About the Report
This is the fourth annual sustainability report released by S.F. Holding Co. Ltd.. It focuses on the sustainable development management measures and
effects following the principles of balance comparability accuracy timeliness clarity and reliability.Time range
This report covers the period from 1 January to 31 December .Coverage
This Report covers the businesses of S.F. Holding Co. Ltd.and its major subsidiaries in the People’s Republic of China and other regions including the
United States South Korea Singapore and Malaysia. Unless otherwise indicated the list of entities included in the Report is consistent with the Annual Financial Report issued by SF.Data explanation
In SF conducted ESG management for Kerry Logistics Network Limited prioritizing ESG data integration and analysis. During the ReportingPeriod SF completed the integration of environmental indicator data of Kerry Logistics Network Limited (see Appendix “Key Performance –Environment” for details); In terms of social indicators due to differences in the business format of Kerry Logistics Network Limited and regulatory
requirements in the regions in which it operates the management of social indicators has not yet been unified. Based on the principles of clarity
and reliability the scope of disclosure in this Report does not include Kerry Logistics Network Limited’ social data. SF will gradually improve the
management and disclosure of social indicators for Kerry Logistics Network Limited in the future.In March 2023 SF successfully passed the audit by SGS-CSTC Standards Technical Services CO. LTD. an international independent third-party audit
organization. The Company completed the third-party verification of greenhouse gas emissions of 2021 and and obtained the certificate of
greenhouse gas accounting.
2021 Greenhouse Gas Verification Statement Greenhouse Gas Verification Statement
090Appendix
Explanation of the reasons for the restatement of the 2021 environmental indicator:
In SF changed the method of determining the organizational boundaries of Greenhouse Gas (GHG) accounting from the financial control
method to the operational control. The Company believes that the use of the operational control method can better reflect the actual carbon
emissions of SF. The adjustment of organizational boundaries has led to the expansion of operational boundaries which in turn has caused changes in
the scope of data collection. Accordingly it is necessary to restate several environmental indicator data for 2021.Coverage of environmental data:
All environmental data for includes data from SF Group (excluding subsidiaries as SF Supply Chain and Xiahui Supply Chain) SF Intra-city and
Kerry Logistics Network Limited.Statistics on land transportation covers self-owned leased employee-owned and outsourced vehicles as well as multimodal transport in mainland
China Hong Kong and Macau. Air transportation statistics covers self-owned and leased aviation cargo aircraft. Air transportation ground operation
statistics covers station bases in mainland China. Statistics on office and service outlets covers self-owned and leased office buildings and service
outlets in mainland China Hong Kong and Macau. Statistics on industrial parks and distribution hubs covers Mainland China Hong Kong self-run
industrial parks self-owned and leased distribution hubs in Mainland China as well as self-owned and leased warehouses in Mainland China.Unless otherwise stated the currency in the Report is denominated in RMB.Reference and Principles
United Nations Sustainable Development Goals (SDGs)
Guidelines for Sustainability Reporting Standards (GRI Standards) of the Global Sustainability Standards Board (GSSB)
Shenzhen Stock Exchange Social Responsibility Instructions to Listed Companies《 深圳证券交易所上市公司社会责任指引》
Key indicators of corporate environmental social and governance performance by capital market rating agencies.SF created this Report using systematic procedures including research and interviews the identification of important stakeholders and material issues
related to ESG and its understanding of stakeholder opinions. The procedures also include the determination of material issues the scope of ESG
disclosure and the collection and review of relevant information. SF prepared the Report based on collected relevant information and review and
approval by the Board of Directors.Report title
For the convenience of expression and reading “SF” “the Group” and “the Company” in this Report all refer to “S.F. Holding Co. Ltd.”.Release of this Report
This Report was approved and released by the Board on 29 March 2023 after confirmation by the management. The sustainability report of SF is
released annually at the same time as the annual financial report.External audit statement
The statistics (excluding economic data in the Annual Report) contained in this Report has been verified by an international independent third-party
verification organization SGS-CSTC Standards Technical Services CO. LTD.
091Appendix
Accessibility of this Report
You can obtain the electronic version of this Report from the following website: SF’s official website https://www.sf-express.com
For further consultation or to offer any opinion or suggestion about this Report please contact the Company via sfir@sf-express.com.ASSURANCE STATEMENT
SGS SGS-CSTC’S REPORT ON SUSTAINABILITY ACTIVITIES IN THE S.F.Holding Co. Ltd Sustainability Report FOR NATURE OF THE ASSURANCE/VERIFICATION
SGS-CSTC STANDARDS TECHNICAL SERVICES CO. LTD.(hereinafter referred to as SGS) was
commissioned by S.F. Holding Co. Ltd (hereinafter referred to as S.F. Holding ) to conduct an independent
assurance of the S.F. Holding Co. Ltd Sustainability Report (hereinafter referred to as the Report).INTENDED USERS OF THIS ASSURANCE STATEMENT
This Assurance Statement is provided with the intention of informing all S.F. Holding’s Stakeholders.RESPONSIBILITIES
The information in the Report and its presentation are the responsibility of board of directors and relevant
functional departments of S.F. Holding.Our responsibility is to express an opinion on the text data graphs and statements within the scope of
verification with the intention to inform all S.F. Holding’s stakeholders.ASSURANCE STANDARDS TYPE AND LEVEL OF ASSURANCE
The SGS ESG & Sustainability Report Assurance protocols used to conduct assurance are based upon
internationally recognised assurance guidance and standards including the principles of reporting process
contained within the Global Reporting Initiative Sustainability Reporting Standards (GRI Standards) GRI 1:
Foundation 2021 for report quality GRI 2 General Disclosure 2021 for organisation’s reporting practices and
other organizational detail GRI 3 2021 for organisation’s process of determining material topics its l ist of
material topics and how to manages each topic and the guidance on levels of assurance contained within the
AA1000 series of standards and ISAE3000.The assurance of this report has been conducted according to the following Assurance Standards:SGS ESG &
SRA Assurance Protocols (based on GRI Principles and guidance in AA1000)
Assurance has been conducted at a moderate level of scrutiny.SCOPE OF ASSURANCE AND REPORTING CRITERIA
The scope of the assurance included evaluation of quality accuracy and reliability of specified performance
information as detailed below and evaluation of adherence to the following reporting criteria: GRI Standards
2021 (Reference)
ASSURANCE METHODOLOGY
The assurance comprised a combination of pre-assurance research interviews with relevant employees onsite
at Block B TK Chuangzhi Tiandi Building Keji South 1st Road Nanshan District Shenzhen
Guangdong Province China interviews remotely of some relevant employees located in other subsidiaries;
documentation and record review and validation with external bodies and/or stakeholders where relevant
LIMITATIONS AND MITIGATION
Financial data drawn directly from independently audited financial accounts has not been checked back to
source as part of this assurance process.Data tracing on headquarters level not including original data of all subsidiaries.
092Appendix
The assurance process only involved interviews with the heads of relevant departments and certain employees
of headquarters and consultation with relevant documents. No external stakeholder involved.STATEMENT OF INDEPENDENCE AND COMPETENCE
The SGS Group of companies is the world leader in inspection testing and verification operating in more than
140 countries and providing services including management systems and service certification; quality
environmental social and ethical auditing and training; environmental social and sustainability report
assurance. SGS affirm our independence from S.F. Holding being free from bias and conflicts of interest with
the organisation its subsidiaries and stakeholders.The assurance team was assembled based on their knowledge experience and qualifications for this
assignment.FINDINGS AND CONCLUSIONS
ASSURANCE/VERIFICATION OPINION
On the basis of the methodology described and the verification work performed the specified performance
information included in the scope of assurance is accurate reliable and has been fairly stated.The assurance team believes that the Report has referred to management approach disclosure and reporting
principles in GRI Standards 2021.Principles
Accuracy
S.F. Holding’s information in the report was accurate enable to release more qualitative and quantitative
information with indicators for stakeholders.Balance
The Report followed the balance principle and truthfully disclosed the positive and negative information.Clarity
The Report was presented different ways with words charts graphics and pictures also described with actual
cases to ensure the stakeholders understanding easily.Comparability
S.F. Holding had disclosed performance indicators in previous data of partial indicators were disclosed
which could help stakeholders to understand and compare the improved performance year by year.Completeness
The Report included coverage of material aspects and boundaries to reflect significant economic
environmental and social impacts and enable stakeholders to assess the organization’s performance in the
reporting period.Sustainability Context
S.F. Holding had presented the efforts on sustainability development related to governance environmental
social and service aspects and combined the performance in the wide context as well.Timeliness
Verification shewn that the reported data and information was timely and effective. S.F. Holding disclosed its
first ESG report in Jul 2020 and has disclosed it annually since then which indicates good timeliness.Verifiability
The data and information can be traced and verified.
093Appendix
Management Approach
The Report had disclosed the management approach of identified material topics.General Disclosures
The general disclosures were partly presented in accordance with GRI 2: general disclosures 2021.Topic-Specific Disclosures
S.F. Holding’s topic-specific disclosures related to the material topics in economic environmental and social
areas were in accordance with GRI Standards.Findings and recommendations
Good practices and recommendations for sustainability report and management process were described in the
internal management report which has been submitted to the management of S.F. Holding for continuous
improvement.Signed:
For and on behalf of SGS-CSTC
David Xin
Sr. Director – Knowledge
16/F Century Yuhui Mansion No. 73 Fucheng Road Beijing P.R. China
Mar. 23 2023
WWW.SGS.COM
094Appendix
Policy List
ESG Indicator Internal system for Rules of Procedure for General Meeting
Rules of Procedure for Board of Directors
Rules of Procedure for Supervisory Committee
Information Disclosure Management System
Risk Control Management System
Crisis Management System
Rules for the Operation of the Risk Committee
Letter of Commitment to Anti-Corruption
Integrity Agreement
Administrative Measures for Relatives Avoiding
Employee Handbook
Integrity Handbook
Rewards and Penalty Management Regulations
Employee Handbook
Governance
Reporting Management Measures
Employee Communication Management Regulations
Trademark (Trade Name) Management System
Operation Guidelines for Handling Infringement Incidents
Patent (Software Copyright) Management System
Articles of Association of SF Holdings Co. Ltd.Emergency Plan for Information Security Incidents Regulations on
Network Security Incident Management
Customer Information Management Measures
Safety Management Provisions on the Use of Employee Information
Safety Management Provisions on the System privacy data
Administrative Measures for Information Leakage Security Incidents
Administrative Measures for Rewards and Penalties for Information Security
Administrative Measures for High-Risk behaviors in Information Security
Regulations on the Administration of Water and Electricity in the Parks
Management Guide for Maintenance of Industrial Park Facilities and Equipment
Industrial Park Property Service Standards
Energy Measurement Management System
Dangerous Goods Management Procedure
Environment Measures for Office Space Management
Engineering Electromechanical Management Manual of SF Fengtai Industrial Park
Property Equipment Management System
Property Environment Management System
Lump-sum Oil Consumption Plan for Commercial Vehicles
SF Aviation Energy Management System (Provisional)
095Appendix
ESG Indicator Internal system for Safety Production Management Manual
Related Party Safety Management Procedures
Post Safety Operation Standards
Pickup and Delivery Inspection System
Operational Guidelines for Emergency Handling of Shipments on Fires
Regulations on the Management of “Three Systems” for Mails and Shipments
Safety Assessment and Incentive Management Regulations
Procedures on Hazard Source Identification Risk Assessment and Control Management
Regulations on Safety Management of Logistics Suppliers
Safety Management Agreement for Logistics Handling and Sorting Services
Safety Management Agreement for Cargo Transportation Services by Road
Regulations on Safety Education and Training Management
Competence Evaluation and Training Management Procedure
Comprehensive Emergency Plan for Safety Production
Emergency Preparation and Response Management Procedure
Emergency Plan Management Regulations
Work Guideline on Handling of Employees’ Demands through Labor Union
Complete-Process Management Mechanism for Demands
Plan for Whole-Process Quality Improvement of Demands
Labor Union Hotline Service Quality Improvement Mechanism
Work Guidelines for Conversing Employee Voice into Productivity
Society
Reasonable Suggestion Management Mechanism
Employee Welfare Management System
Talent Promotion Management System
Operation Instruction Manual for Employee Care
SF Express Safety Production Management Manual
Letter of Responsibility for Safety Production Objectives
Operation Procedures for Real-Name Pickup and Delivery
Reward Mechanism for Self-Inspection of Illegal and Prohibited Articles
Special Plan for the Control of Illegal and Prohibited Articles
Regulations on Operation and Management of Battery-Contained Packages
Regulations on Safety Management of Site Vehicle Operation
Regulations on Safety Management of Site Vehicle Operation
Recruitment Management System
Management Regulations on Procurement Suppliers
Supplier Penalty Management Measures
Letter of Notification of Transparent Procurement
Management Regulations on Procurement Risk
Regulations on the Management of Purchasing Staff
Regulations on Green Procurement Management of Procurement Supply Chain Center
Articles of Association of SF Charity Foundation
Management System of SF Charity Foundation Volunteer Association
096Appendix
ESG Indicator Internal system for Operation Procedures for Real-Name Pickup and Delivery
Regulations on Operation and Management of Battery-Contained Packages
Reward Mechanism for Self-Inspection of Illegal and Prohibited Articles
Special Plan for the Control of Illegal and Prohibited Articles
Dangerous Goods Transportation Manual
Reward Management Measures for Self-Inspection of Illegal and Prohibited Articles
Services
Operation Procedures for Pickup and Delivery Lithium Battery-Contained Packages
Regulations on Privacy Data Security Compliance Management
Reward and Punishment Rules for Customer Service
Abnormality Handling Mechanism for Time-Effective Category
Differentiated Customer Services
Guidelines for the Control of Internet Public Opinions and Complaints
Key Performance
Indicator – Governance14 Unit 2020 2021 Number of general meetings Time 2 5 4
Follow-up feedback rate of effective reporting % 100 100 100
Completion rate of “three ones” in handling complaints % 95 96 96
Workforce’ signing rate of the Letter of Commitment to
%89.192.994.6
Anti-corruption
Total duration of workforce anti-corruption education Hour 17500 19017 21300
Indicator – Environment Unit 2020 2021
SF KLN
GHG emissions
Total GHG emissions 5426964.7 9079312.0 9185355.1 2472955.0
Scope 1 4182419.20 2834500.1 3143752.0 322253.0
GHG emissions tCO2e
Scope 2 590431.6 1684937.7 1804248.5 80543.0
Scope 3 654113.9 4559874.1 4237354.6 2070159.0
tCO2e/
GHG emission intensity million 35.2 48.6 47.6 33.1
revenue
g CO e/
GHG emissions per shipment15 2 666.7 860.6 824.5 N/A16
shipment
14 The governance indicators do not include Kerry Logistics Network Limited data.
15 T he GHG emissions of a single order are calculated from the total GHG emissions and the total shipment volume during the Reporting Period. The total shipment volume
does not include the shipment volume of Kerry Logistics Network Limited’ business in overseas countries.
16 Due to the differences in business forms this indicator is not applicable to Kerry Logistics Network Limited.
097Appendix
Indicator – Environment Unit 2020 2021
SF KLN
Energy consumption
Total gasoline consumption 69149667.3 120521385.4 113514553.9
Gasoline consumption of land
Gasoline 69067775.7 120419831.4 113401568.7
transportation L 1653241.5
consumption
Gasoline consumption of ground
81891.6101554.0112985.3
aviation
Total diesel consumption 914265444.4 1169914459.3 1176328146.3
Diesel consumption of land
Diesel 913116365.4 1168844647.6 1175178580.0
transportation L 103351869.9
consumption
Diesel consumption of ground
1149079.01069811.71149566.3
aviation
Total outsourced electricity
676296585.91759180709.81840522716.8
consumption
Electricity consumption of land
117336376.5125767090.0142288089.0
transportation
Electricity consumption of ground
Outsourced 7731677.5 12032767.1 10773210.0aviation
electricity kW.h 164389000
consumption Industrial Park and distribution 299143742.3 994552136.8 1090926407.1
hub electricity consumption
Electricity consumption of office
252084789.6563540011.0530138728.8
and service outlets
Electricity consumption of
/63288704.866396281.9
warehouses
Aviation kerosene consumption t 500657.70 516508.1 514485.7 N/A17
Comprehensive energy consumption kW.h 16321547680.4 20781811956.3 20839156761.0 1215138800
kW.h/
Comprehensive energy intensity million 105993.1 111176.9 108072.9 16274.4
revenue
Resource consumption
Total water consumption 702968 821882.0 1423452.0
Water consumption of industrial
620251.7653893.01215171.0
parks and distribution hubs18
Water
consumption Water consumption of office and
t 1169181
43600.3123485.0120993.0
service outlets
Water consumption of ground
3911644504.087288.0
aviation
Waste
Total waste production 20801957.2 27131393.4 46096330.9
Non-
Waste production of industrial
Hazardous 19 16703832.4 23934635.0 42134677.0park kg 28442000
Waste
production Waste production of headquarters 4098124.8 3196758.4 3961653.9
office
Packaging materials
Total use of packaging items 358264904.0 455273842.3 445093236.0
Consumption of express envelope 75051139.1 80221238.6 75219380.0
Consumption of waybill 22287605.8 22855775.1 17620130.4
Use of Carton consumption 231477670.1 239793264.9 241291360.0
packaging kg 9203000
items Consumption of plastic bags 26761002.0 37327243.6 41596926.6
Consumption of scotch tapes 26316984.3 29820095.9 28412018.0
Foaming type of fillers / 28169587.6 12814718.2
Inflatable type of fillers / 17086636.6 28138702.8
17 Due to the differences in business forms this indicator is not applicable to Kerry Logistics Network Limited.
18 As 18 new industrial parks were put into operation in the water consumption recorded an increase compared to 2021
19 As 18 new industrial parks were put into operation in the amount of non-hazardous waste produced recorded an increase compared to 2021
098Appendix
Indicator – Society20 Unit 2020 2021 Democratic management
Number of labor union members 0000 20 45 57
Collective bargaining agreements coverage rate % 31 40 49
Settlement rate of practitioner communication and advice
accidents % 96 98 97
Employees and employment
Employment contract signing rate % 100 100 100
Total number of workforces Person 634328 678413 699474
Couriers turnover % 19.2 18.7 19.8
Training and development
Total number of employees trained Person-times 6238439 7178737 8584201
Total hours of workforce training Hour 1905093 2747491 2532405
RMB100
Total investment in workforce training million 1.3 1 0.65
Number of male workforce online training Person-times 5126141 5966421 5109844
Number of female workforce online training Person-times 1112298 842225 871304
Number of new workforce training Person-times 205127 229623 160736
Total number of workforces receiving financial support for
educational certification Person 1191 1299 1557
Total amount of educational certification subsidy RMB 7466000 8157674 9261131
Health and safety
Number of serious fire accidents on shipments Accident 0 0 0
Number of Level I and Level II fire accidents on site Accident 0 0 0
Lost working days per million shipments Day 77 57 62
Rectification rate of potential safety hazards discovered in
various safety inspections and activities % 100 100 100
Number of safety drills Times 6000 6119 5850
Safety training coverage rate % 100 100 100
Employee satisfaction and care
Staff satisfaction % 88 86 86
10000
Sympathy to workforces and their families Person-times 240 240 349
Input of workforce care services RMB’0000 7625 28718 31004
20 The social indicators do not include Kerry Logistics Network Limited data.
099Appendix
Indicator – Society20 Unit 2020 2021 Supply chain management
Number of suppliers in China Company 11126 8938 10767
Number of suppliers in Hong Kong Macao and Taiwan Company 11 22 25
Number of suppliers in Europe and America Company 5 5 5
Number of suppliers in Asia (excluding China) Company 2 2 4
Suppliers with systematic management Company 11144 8967 10801
Newly introduced collective purchasing suppliers Company 1008 664 1406
Newly introduced separated suppliers Company 7558 2222 2330
Signing rate of supplier social responsibility clauses % 100 100 100
Signing rate of supplier integrity agreement % 100 100 100
Indicator – Services21 Unit 2020 2021 Technology development
Number of patents granted Patent 1371 1680 1851
Number of new patents granted Patent 420 283 221
Safe delivery
Coverage rate of training on safe delivery for couriers % 84 100 100
Number of safety training courses on safe delivery Course 31 26 39
Pass rate of delivery safety training % 99.8 99.9 99.9
Rate of certified employment for special equipment % 100 100 100
Number of illegal and prohibited products intercepted Item 10713 32460 44040
Customer service
Effective complaint rate of consumers PPM22 0.03 0.04 0.03
Handling rate of consumer complaints % 100 100 100
21 The service indicators do not include Kerry Logistics Network Limited data.
22 PPM (Part Per Million) : Part per million
100Appendix
Indicator Index
GRI Standards Content Index
SF referred to the GRI standards for preparation of the Report covering the period from
Instructions
January 1 to December 31 .Use of GRI 1 GRI 1: Foundation 2021
GRI Standard
GRI Standard Indicator Location/Note
Indicator No.GRI 2: General Disclosure 2021
2-1 Organizational details About SF
2-2 Entities included in the organization’s sustainability reporting About the Report
2-3 Reporting period frequency and contact point About the Report
2-4 Restatements of information About the Report
2-5 External assurance About the Report
About SF
2-6 Activities value chain and other business relationships
Building Responsible Chain Together
Talent Pool Development
2-7 Employees
Key Performance
2-8 Workers who are not employees Bearing Social Responsibility
2-9 Governance structure and composition Standardizing Corporate Governance
2-10 Nomination and selection of the highest governance body Please refer to the Annual Report
2-11 Chair of the highest governance body Please refer to the Annual Report
Role of the highest governance body in overseeing the
2-12 Standardizing Corporate Governance
management of impacts
2-13 Delegation of responsibility for managing impacts Standardizing Corporate Governance
Role of the highest governance body in sustainability
2-14 ESG Governance System
reporting
2-15 Conflicts of interest Abiding by Business Ethics
Standardizing Corporate Governance
2-16 Communication of critical concerns
Sustainability Management
Sustainability Management
2-17 Collective knowledge of the highest governance body
Standardizing Corporate Governance
Evaluation of the performance of the highest governance
2-18 Please refer to the Annual Report
body
2-19 Remuneration policies Please refer to the Annual Report
2-20 Process to determine remuneration Please refer to the Annual Report
101Appendix
GRI Standard
GRI Standard Indicator Location/Note
Indicator No.
2-21 Annual total compensation ratio Please refer to the Annual Report
2-22 Statement on sustainable development strategy Sustainability Management
2-23 Policy commitments Talent Pool Development
2-24 Embedding policy commitments Standardizing Corporate Governance
2-25 Processes to remediate negative impacts Strengthening Risk Control Management
2-26 Mechanisms for seeking advice and raising concerns Sustainability Management
There is no material non-compliance cases during the
2-27 Compliance with laws and regulations
Reporting Period
Highlights of Annual Performance
2-28 Membership associations
Creating Green Logistics
2-29 Approach to stakeholder engagement Communication with Stakeholders
Talent Pool Development
2-30 Collective bargaining agreements
Key Performance
GRI 3: Material Topics 2021
3-1 Process to determine material topics Determination of Materiality Issues
3-2 List of material topics Determination of Materiality Issues
GRI 201: Economic Performance 2016
Strengthening Risk Control Management
Tackling Climate Change
3-3 Management of material topics
Practicing Public Service and Charity
Fueling Rural Revitalization
201-1 Direct economic value generated and distributed Bearing Social Responsibility
Financial implications and other risks and opportunities due Tackling Climate Change
to climate change Strengthening Risk Control Management
201-3 Defined benefit plan obligations and other retirement plans Talent Pool Development
201-4 Financial assistance received from government Please refer to the Annual Report
GRI 202: Market Presence 2016
3-3 Management of material topics Talent Pool Development
Ratios of standard entry level wage by gender compared to
202-1 Talent Pool Development
local minimum wage
GRI 203: Indirect Economic Impacts 2016
3-3 Management of material topics Bearing Social Responsibility
203-1 Infrastructure investments and services supported Bearing Social Responsibility
203-2 Significant indirect economic impacts Bearing Social Responsibility
102Appendix
GRI Standard
GRI Standard Indicator Location/Note
Indicator No.GRI 205: Anti-corruption 2016
3-3 Management of material topics Abiding by Business Ethics
205-1 Operations assessed for risks related to corruption Abiding by Business Ethics
Communication and training about anti-corruption policies
205-2 Abiding by Business Ethics
and procedures
205-3 Confirmed incidents of corruption and actions taken Abiding by Business Ethics
GRI 206: Anti-competitive Behavior 2016
3-3 Management of material topics Abiding by Business Ethics
Legal actions for anti-competitive behavior anti-trust and
206-1 Abiding by Business Ethics
monopoly practices
GRI 301: Materials 2016
3-3 Management of material topics Sustainable Packaging Practice
301-1 Materials used by weight or volume Sustainable Packaging Practice
301-2 Recycled input materials used Sustainable Packaging Practice
301-3 Reclaimed products and their packaging materials Sustainable Packaging Practice
GRI 302: Energy 2016
Environmental Management System Certification
3-3 Management of material topics
Promote Low-carbon Transportation
302-1 Energy consumption within the organization Promote Low-carbon Transportation
302-2 Energy consumption outside of the organization Promote Low-carbon Transportation
302-3 Energy intensity Promote Low-carbon Transportation
302-4 Reduction of energy consumption Promote Low-carbon Transportation
Promote Low-carbon Transportation
302-5 Reductions in energy requirements of products and services
Promoting Circular Economy
GRI 303: Water and Effluents 2018
Promote Green Office
3-3 Management of material topics
Building Green Industrial Parks
Promote Green Office
303-1 Interactions with water as a shared resource
Building Green Industrial Parks
Promote Green Office
303-2 Management of water discharge related impacts
Building Green Industrial Parks
303-5 Water consumption Key Performance
103Appendix
GRI Standard
GRI Standard Indicator Location/Note
Indicator No.GRI 305: Emissions 2016
Sustainable Packaging Practice
3-3 Management of material topics
Promote Low-carbon Transportation
305-1 Direct (Scope 1) GHG emissions Key Performance
305-2 Energy indirect (Scope 2) GHG emissions Key Performance
305-3 Other indirect (Scope 3) GHG emissions Key Performance
305-4 GHG emissions intensity Key Performance
305-5 Reduction of GHG emissions Key Performance
GRI 306: Waste 2020
3-3 Management of material topics Green Industry Development
306-1 Waste generation and significant waste-related impacts Green Industry Development
306-2 Management of significant waste-related impacts Green Industry Development
306-3 Waste generated Key Performance
GRI 308: Supplier Environmental Assessment 2016
3-3 Management of material topics Building Responsible Chain Together
New suppliers that were screened using environmental
308-1 Building Responsible Chain Together
criteria
Negative environmental impacts in the supply chain and
308-2 Building Responsible Chain Together
actions taken
GRI 401: Employment 2016
3-3 Management of material topics Talent Pool Development
401-1 New employee hires and employee turnover Key Performance
Benefits provided to full-time employees that are not
401-2 Employee Care
provided to temporary or part-time employees
401-3 Parental leave Employee Care
GRI 402: Labor/Management Relations 2016
3-3 Management of material topics Protection of Employees’ Rights and Interests
402-1 Minimum notice periods regarding operational changes Protection of Employees’ Rights and Interests
GRI 403: Occupational Health and Safety 2018
3-3 Management of material topics Ensuring Safety Production
403-1 Occupational health and safety management system Ensuring Safety Production
Hazard source identification risk assessment and incident
403-2 Ensuring Safety Production
investigation
403-3 Occupational health services Ensuring Safety Production
104Appendix
GRI Standard
GRI Standard Indicator Location/Note
Indicator No.Worker participation consultation and communication on
403-4 Ensuring Safety Production
occupational health and safety
403-5 Worker training on occupational health and safety Ensuring Safety Production
403-6 Promotion of worker health Ensuring Safety Production
Prevention and mitigation of occupational health and safety
403-7 Ensuring Safety Production
impacts directly linked by business relationships
Workers covered by an occupational health and safety Ensuring Safety Production
management system Key Performance
Ensuring Safety Production
403-9 Work-related injuries
Key Performance
403-10 Work-related ill health Ensuring Safety Production
GRI 404: Training and Education 2016
Helping Employees to Grow
3-3 Management of material topics
Key Performance
404-1 Average hours of training per year per employee Key Performance
Programs for upgrading employee skills and transition
404-2 Helping Employees to Grow
assistance programs
Percentage of employees receiving regular performance and
404-3 Helping Employees to Grow
career development reviews
GRI 405: Diversity and Equal Opportunity 2016
3-3 Management of material topics Protection of Employees’ Rights and Interests
Protection of Employees’ Rights and Interests
405-1 Diversity of governance bodies and employees
Key Performance
GRI 406: Non-discrimination 2016
3-3 Management of material topics Protection of Employees’ Rights and Interests
406-1 Incidents of discrimination and corrective actions taken Protection of Employees’ Rights and Interests
GRI 407: Freedom of Association and Collective Bargaining 2016
3-3 Management of material topics Protection of Employees’ Rights and Interests
Operations and suppliers in which the right to freedom of
407-1 Protection of Employees’ Rights and Interests
association and collective bargaining may be at risk
GRI 408: Child Labor 2016
3-3 Management of material topics Protection of Employees’ Rights and Interests
Operations and suppliers at significant risk for incidents of
408-1 Protection of Employees’ Rights and Interests
child labor
GRI 409: Forced or Compulsory Labor 2016
3-3 Management of material topics Protection of Employees’ Rights and Interests
Operations and suppliers at significant risk for incidents of Protection of Employees’ Rights and Interests
forced or compulsory labor Building Responsible Chain Together
105Appendix
GRI Standard
GRI Standard Indicator Location/Note
Indicator No.GRI 413: Local Communities 2016
3-3 Management of material topics Bearing Social Responsibility
Operations with local community engagement impact
413-1 Bearing Social Responsibility
assessments and development programs
Operations with significant actual and potential negative
413-2 Bearing Social Responsibility
impacts on local communities
GRI 414: Supplier Social Assessment 2016
3-3 Management of material topics Building Responsible Chain Together
414-1 New suppliers that were screened using social criteria Building Responsible Chain Together
414-2 Negative social impacts in the supply chain and actions taken Building Responsible Chain Together
GRI 416: Customer Health and Safety 2016
Securing Safety Delivery
3-3 Management of material topics
Building Quality Services
Assessment of the health and safety impacts of product and
416-1 Securing Safety Delivery
service categories
Incidents of non-compliance concerning the health and safety Securing Safety Delivery
impacts of products and services Building Quality Services
GRI 418: Customer Privacy 2016
Customer Privacy Protection
Securing Safety Delivery
3-3 Management of material topics
Data Security Governance
Whistleblowing Management
Customer Privacy Protection
Substantiated complaints concerning breaches of customer
418-1 Securing Safety Delivery
privacy and losses of customer data
Whistleblowing Management
106Appendix
Sustainability Accounting Standards Board Index (SASB
Content Index)
Sustainability Disclosure Topics & Accounting Metrics
Topic Accounting Metric Category Code Location
Create Green
Gross global Scope 1 emissions Quantitative TR-AF-110a.1 Logistics
Key Performance
Discussion of long-term and short-term strategy or plan
Greenhouse Discussion
to manage Scope 1 emissions emissions reduction targets TR-AF-110a.2 Environment
Gas Emissions and Analysis
and an analysis of performance against those targets
Fuel consumed by (1) road transport percentage (a) Create Green
natural gas and (b) renewable and (2) air transport Quantitative TR-AF-110a.3 Logistics
percentage (a) alternative and (b) sustainable Key Performance
Air emissions of the following pollutants: (1) NO
Air Quality x Quantitative TR-AF-120a.1 /
(excluding N2O) (2) SOx and (3) particulate matter (PM10)
Percentage of dr ivers c las s i f ied as independent
Quantitative TR-AF-310a.1 Not applicable
contractors
Labor Practices
Total amount of monetary losses as a result of legal
Quantitative TR-AF-310a.2 Not applicable
proceedings associated with labor law violations
Ensuring Safe
Employee (1) Total recordable incident rate (TRIR) and (2) fatality
Quantitative TR-AF-320a.1 Production
Health & Safety rate for (a) direct employees and (b) contract employees
Key Performance
Percentage of carrier with BASIC percentiles above the
Quantitative TR-AF-430a.1 Not applicable
FMCSA intervention threshold
Supply Chain
Management Sustainable
Total greenhouse gas (GHG) footprint across transport
Quantitative TR-AF-430a.2 Packaging Practice
modes
Key Performance
Ensuring Safe
Description of implementation and outcomes of a Safety Discussion Production
TR-AF-540a.1
Management System and Analysis Safety Management
System
Accident Number of aviation accidents Quantitative TR-AF-540a.2 /
& Safety
Management Number of road accidents and incidents Quantitative TR-AF-540a.3 /
Safety Measurement System BASIC Percentiles for: (1)
Unsafe Driving (2) Hours-of-Service Compliance (3) Driver
Quantitative TR-AF-540a.4 Not applicable
Fitness (4) Controlled Substances/Alcohol (5) Vehicle
Maintenance and (6) Hazardous Materials Compliance
Table. Activity Metrics
Activity Metric Category Code Location
Revenue ton kilometers (RTK) for: (1) road transport and (2) air
Quantitative TR-AF-000.A /
transport
Promote Low-carbon
Load factor: (1) road transport (2) air transport Quantitative TR-AF-000.B
Transportation
Number of employees number of truck drivers Quantitative TR-AF-000.C Key Performance
107Appendix
Readers’ Feedback
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