Joining forces to fight the climate crisis has become a global consensus. The 28th UN Climate Change Conference (COP28) resulted in the “UAE Consensus”, which includes a commitment to “transitioning away from all fossil fuels in energy systems, in a just, orderly and equitable manner in this critical decade to enable the world to reach net zero emissions by 2050”. As the world’s second-largest economy, China sticks to the path of green and low-carbon development and implements a national strategy of actively responding to climate change. Currently, China is among the countries that reduce energy intensity the fastest in the world.

Facing the increasingly severe challenges of global climate change, Fosun, as a participant in the United Nations Global Compact (“UN Global Compact”), has actively responded to the initiatives of the Paris Agreement and the national strategy by contributing to China’s efforts to achieve its “dual carbon goals”. In 2021, Fosun formally committed itself to “striving to achieve peak carbon emissions by 2028 and carbon neutrality by 2050” and established a Carbon Neutrality Committee and a Carbon Neutrality Working Group to integrate carbon neutrality into the environmental, health and safety (EHS) audit and management system. Fosun worked with its member companies to push forward with the construction of the “1+N” system.

In 2023, with reference to the Task Force on Climate-Related Financial Disclosures (“TCFD”) recommendations, Fosun disclosed its climate-related financial risks voluntarily and issued its first Task Force on Climate-Related Financial Disclosures report (the “TCFD Report”), demonstrating to the international community its commitment to climate action.

Carbon Neutrality Committee and Working Group Established to spearhead Fosun’s advance towards carbon peak and carbon neutrality targets

The Group has established a Carbon Neutrality Committee and a Carbon Neutrality Working Group to spearhead its work on carbon neutrality. The Carbon Neutrality Committee, which is composed of the directors of Fosun International and the directors of the member companies, is responsible for supervising and promoting the overall carbon neutrality strategy, and regulating and monitoring climate-related risks and opportunities. Fosun has also added the indicator of “carbon neutrality management” to the mechanism for appraising the ESG management performance of the Group’s CEOs and responsible persons of each business segments, with the aim of promoting further the implementation and enforcement of carbon-neutral management across the Group.

Fosun also standardizes the environment, health, safety and quality (EHSQ) work of its member companies, actively promotes the construction of the "1+N" system, includes ESG and carbon neutrality practices in the Group’s systemic audit, and improves the corresponding management and reward system. The Group has combined internationally advanced management standards with energy control and environmental audit requirements to manage corporate risks scientifically and systematically, and gradually improve its ESG management levels.

The Group and its member companies actively promote energy conservation and carbon reduction and are determined to become carbon reduction pioneers in their industries. The Group’s Atlantis Sanya obtained the National Certificate of Three-star Green Building Design and Operation Label, the highest level of Chinese green building certification; obtained the LEED (Leadership in Energy and Environmental Design) Gold Building Design and Construction Certification and the “EarthCheck” Silver Certification, the leading environmental certification for the global tourism industry.

The Bund Finance Center (BFC), the Group’s base in Shanghai and a landmark in the city, was awarded the LEED Platinum certification, which is hailed as the “Oscar Award” in the green building industry, with a score of 97 points to set a new world record.

Yuyuan places great emphasis on energy conservation and emission reduction, including the use of LED lights at the Yuyuan Garden Lantern Festival. These concurrent measures have significantly reduced energy consumption, accelerating the pace of carbon emission reduction. In recent years, all installations at the Yuyuan Garden Lantern Festival have been made with LED lights. This not only enhances the artistic and aesthetic aspects of the lanterns but also effectively saves energy. By continuously implementing energy-saving and emission-reducing measures, Yuyuan strives to create a green cultural event based on its philosophy.

Hainan Mining attaches great importance to the geological environment protection and ecological management of mining areas, and continuously increases the vegetation coverage rate at its mines. From its establishment in 2007 to the end of 2023, Hainan Mining had voluntarily planted 3.35 million trees, ecologically restoring 5,376 acres of land with a total of RMB164.90 million invested in the remediation. To conserve water and enhance the utilization of mine water, Hainan Mining has undertaken projects to vigorously research and develop water recycling for the beneficiation and mining processes, and established an effective water recycling management mechanism, yielding an excellent result in saving water. The beneficiation wastewater is comprehensively reused through in-plant disposal and the reuse of overflow from the tailings dam, thus realizing zero emission of the industrial wastewater through the “dual recycling” of the wastewater. All the mine pit water generated during mining is fully utilized. In the past three years, although the total water consumption by Hainan Mining has increased, the annual consumption of new water has decreased year by year.

After more than three decades of development, Fosun has been a participant in the UN Global Compact for ten consecutive years and is committed to promoting global commitments to sustainable development. Fosun actively supports the United Nations Sustainable Development Goals such as climate action, affordable clean energy, protection of underwater life and terrestrial life, and responsible consumption and production. It also supervises and guides its member companies in actively responding to climate change during business operation and carrying out energy conservation and emission reduction work. Meanwhile, Fosun also seeks opportunities to develop a low-carbon, green and circular economy.

In 2020, Fosun joined the Chinese ESG Leaders Association and became a member of the China Business Council for Sustainable Development (CBCSD). In September 2023, the Group participated in the Sustainability CEO Forum held in the city of Hefei, Anhui province, China and discussed with relevant government departments, research experts and representatives from other enterprises how to align oneself with the national development plan, enhance the capability for climate action and achieve the objectives of green, low-carbon development. Leveraging on years of continuous cultivation in the ESG field, Fosun stood out from many companies and was successfully listed among 2023 China Top 100 Sustainable Enterprises, ranking third in the list.

Looking ahead, Fosun will continue to uphold its original aspirations of “Contribution to Society”, actively shoulder more social responsibilities, implement ESG strategies, constantly create value and give back to the society. Fosun will adhere to its strategic focus, leverage its advantages of “global operations” and “technology innovation”, deepen its core businesses with global competitiveness, so as to drive faster and better development of the Group. In addition, Fosun will continue to actively cooperate with its member companies in facilitating the implementation of ESG strategies, especially in the areas of carbon emissions peak, carbon neutrality, energy conservation and consumption reduction, thus pressing ahead with the Group’s sustainable development.