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Recently, China Shengmu was awarded the "ESG Disclosure Contribution Pioneer Award" at the Hong Kong Green and Sustainable Contribution Awards organized by the Hong Kong Quality Assurance Agency (HKQAA), in recognition of its outstanding performance and proactive disclosure in environmental, social, and governance (ESG) practices.

This honor not only acknowledges the company’s efforts in sustainable development but also serves as an encouragement for its continued commitment to driving green development, promoting social harmony, and ensuring environmental sustainability.

[2024 Hong Kong Green and Sustainable Contribution Awards Ceremony]

In its 2023 ESG Report, China Shengmu responds to the latest ESG disclosure requirements from the Hong Kong Stock Exchange (HKEX) and aligns with the International Financial Reporting Standards (IFRS) set by the International Sustainability Standards Board (ISSB).

As a company committed to sustainable development, China Shengmu has consistently integrated ESG principles into its strategic planning and daily operations.

Through continuous technological innovation and the optimization of management models, Shengmu has achieved efficient resource utilization and ongoing environmental improvement.

• In environmental protection, China Shengmu actively implements energy-saving and emission-reduction measures, reduces carbon emissions, and protects biodiversity.
• In social responsibility, Shengmu prioritizes employee welfare and career development, promotes community engagement, and supports public welfare projects.
• In corporate governance, China Shengmu has established a transparent and efficient decision-making mechanism to ensure the company’s long-term stable development.

This award not only affirms the company’s past ESG efforts but also represents an expectation for its future development. Shengmu will continue to deepen its ESG practices, strengthen cooperation with all stakeholders, and jointly promote the green transformation and sustainable development of the industry.

At the same time, China Shengmu will leverage its expertise and advantages in ESG to provide more sustainable development solutions for society and contribute to building a greener, more harmonious, and sustainable world.

World Environment Day – June 5th Every Year

World Environment Day reflects global awareness and attitudes towards environmental issues, expressing humanity’s desire for a better environment.

Specific Goals:

• Strengthen education and awareness on climate change mitigation, adaptation, impact reduction, and early warning systems, and enhance the capacity of individuals and institutions in these areas.

Shengmu’s Response:

• Shengmu has implemented industry-driven desertification control by planting trees and building organic grasslands, transforming deserts into oases and creating organic ecological zones in the desert. This has improved the local ecological environment and biodiversity while enhancing resilience to climate change.

• Shengmu has led the way with its carbon reduction plan, launching a “Carbon Reduction Strategy and Plan” and successfully completing carbon inventory tasks.

• In response to the Carbon Disclosure Project (CDP) Climate and Forest questionnaires, Shengmu highlighted greenhouse gas reduction measures such as reducing fossil fuel consumption, carbon sequestration in deserts, as well as forest protection initiatives like sand fixation and water conservation.
  

Shengmu adheres to the principle of "grass where suitable, trees where suitable," based on the “low-coverage desertification control theory,” constructing a systematic desert industry model. It has developed a multi-layered ecological system combining trees, shrubs, and pastures, with large trees serving as primary protection, and shrubs and grasses providing secondary and tertiary defenses. This comprehensive approach prevents wind erosion, reduces land desertification, and supports ecological restoration.

Through continuous ecological restoration in the Ulan Buh Desert, a regional microclimate has developed. Since 2014, the desert has experienced nine instances of heavy fog, and in recent years, there have even been multiple instances of snowfall, forming a rare white desert spectacle.

Climate change has led to a rich biodiversity boost. In addition to pastures and medicinal herbs, plants like alfalfa, oats, corn, and dandelions now thrive in the former desert. Animals such as lizards, foxes, wild rabbits, and yellow sheep have started to appear, and even waterfowl, egrets, and owls have begun settling in this desert oasis.