China Tourism Group Duty Free Corporation Limited

Stock Abbreviation：CTG DUTY-FREE

A Share Stock Code：601888.SH

H Share Stock Code：01880.HK三亚国际免税城海口国际免税城

2023

Environmental Social and

Governance Report

China Tourism Group Duty Free Corporation Limited 2023 Environmental Social and Governance Report2023 Environmental Social Stock Abbreviation: CTG DUTY-FREE China Tourism Group Duty and Governance Report Stock Code: 601888.SH 01880.HK Free Corporation Limited About this Report

About this Report

Introduction

This report is the third Environmental Social and Governance Report (hereinafter “ESG Report” “this Report” or “the Report”) issued by

China Tourism Group Duty Free Corporation Limited (hereinafter “CTG DUTY-FREE” “the company” or “we”) and its affiliated companies.Reporting Scope

Unless otherwise stated the scope of content disclosed in the ESG Report is consistent with that of the company’s Annual Report.Reporting Period

The period of this Report is from 1 January to 31 December 2023. To enhance the readability of the Report some contents or data refer to

previous years or extend to the date of disclosure of the Report.Source of Information

The information and data provided in the Report have been obtained from our internal documents statistical reports and ESG-related

performance summaries. Unless otherwise specified the currencies involved in the Report are all measured in.Reporting Principles

This Report is prepared in accordance with the ESG Metrics System for ESG Reports of Listed Companies Controlled by Central

State-owned Enterprises issued by the State-owned Assets Supervision and Administration Commission of the State Council (the “SASAC”)

and the Environmental Social and Governance Reporting Guide (“ESG Guide”) Appendix C2 to the Rules Governing the Listing of Securities

on the Main Board of The Stock Exchange of Hong Kong Limited (“Hong Kong Stock Exchange”) and with reference to the following rules:

* The Guidelines for State-owned Enterprises Directly under the Central Government on Fulfilling Corporate Social Responsibilities

issued by the SASAC;

* The Guidelines No. 1 for Application of Self-regulation Rules for Listed Companies – Standardised Operation issued by the Shanghai

Stock Exchanges (the “SSE”);

* The Guideline No. 14 for the Application of Self-regulation Rules for Listed Companies – Sustainability Reporting (Trial) (Exposure

Draft) issued by the SSE;* The Guidelines on Corporate Social Responsibility Reporting in China released by Chinese Academy of Social Sciences (“CASS-ESG

5.0”)

* Global Reporting Initiative’s Sustainability Reporting Standards (“GRI Standards”)

* The Ten Principles of the United Nations Global Compact

* United Nations Sustainable Development Goals (SDGs)

Reporting principles

Materiality: We identified key ESG issues through materiality assessment the process and results of which have been disclosed in this report.Quantitative: For those indicators need calculation calculation sources have been disclosed in this Report.Consistency: We follow a consistent approach for disclosure statistics and maintain the same disclosure statistics for this report in respect of

information previously disclosed in the report for last year to the largest extent.Release Form of the Report

The electronic version of this Report can be downloaded from the company’s official website or obtained

by following the WeChat official account of “CTG DUTY-FREE Investor Relations”. This Report is published

in Simplified Chinese Traditional Chinese and English. In the event of any discrepancy between the three

versions the Simplified Chinese version shall prevail.

01CONTENTS

01 About this Report Topic 1: Topic 2:

04 Letter from the Management Proactively Responding to National Capitalising on Our Competitive Edge

Strategies by Fulfilling our Mission as a

06 Social Responsibility to Jointly Uphold ESG Concepts with

Performance Overview Central State-owned Enterprise Brands

08 Statement of the Board of

Directors 16 Comprehensively Promoting Rural 24 Taking Green Actions and Joining Hands with

Revitalisation to Facilitate Common Prosperity Brands to Deliver Green Value

09 About the Company 20 Supporting Local Economic Development and 26 Cooperating in Commercial Activities to Deliver a

Facilitating the Construction of Hainan Free Positive Impact on Society

Trade Port and the Guangdong-Hong Kong-

27 Assisting Brands in Implementing ESG Concepts

Macau Greater Bay Area (GBA)

23 Cooperating Overseas to Improve the

Company’s Brand Image under the Belt and

Road Initiative

01020304

Principles of Prosperity People Planet

Governance

46 Delivering Excellent Services for People’s 66 Protecting Employee Rights and 82 Address ing Cl imate Change to

Well-being Promoting Their Interests Protect the Environment

30 Robust Governance System for Long-

54 Creating a Comfortable Environment for 71 Diversified Training to Promote Staff

term Stable Operations 88 Embracing Green Buildings to Fulfil

Consumption to Ensure Trusted Business Development the Green Building Philosophy

33 Exercising Stronger Governance to Operations

73 Operational Safety and Physical and

Implement ESG Concepts 96 Green and Low-Carbon Operations

55 Optimising Supply Chain Management Mental Health for a Better Life

38 Complying with Commercial Ethics to Driven by the Environment and Intelligence

Reinforce Internal Control Compliance

58 Engaging in Charity Initiatives to Act as a

Responsible Corporate 101 Appendix

61 Setting the Industry Benchmark for High- 101 Glossary of Terms

quality Development

102 Index

ESG Metrics System for ESG Reports of Listed Companies

Controlled by Central State-owned Enterprises Index

HKEX Environmental Social and Governance Reporting Guide Index

GRI Standards IndexChina Tourism Group Duty Free Corporation Limited * 2023 Environmental Social and Governance Report Letter from the Management

Letter from the Management and strived to seize favourable opportunities which included Engaging in High-quality Development Pursuing Long-term successfully competing with overseas destinations to attract Stable Operations

tourists and consumer spending. The company adheres to the

With high-quality development as our core direction and

strategy of “laying deep roots in Hainan” and makes great effortsfocussing on the goal of “building a central state-owned enterpriseto explore investment and development opportunities on the

that upholds the principles of integrity safety environmental

island. To this end we have opened six offshore duty-free stores inawareness and harmony” we have put in place a robust

Dear stakeholders: Haikou Sanya and Boao fully covering visitors leaving Hainan by governance system to enable long-term stable operations and we

“plane ship or train”. At the same time the company has seized

are exercising stronger governance to implement ESG concepts.

2023 marked the first year in which the spirit of the 20th CPC development opportunities in the GBA by opening duty-free stores While steadily upholding the concept of “trusted businessNational Congress was fully implemented and in response CTG in Guangdong Hong Kong and Macau with a view to facilitating operations and excellent services” the company is expanding its

DUTY-FREE forged ahead and pursued concerted action. During the construction of the GBA. The company is actively responding offerings of high-quality goods and services and encouraging the

the year the company won a number of awards such as the title to the Report to the 20th National Congress of the CPC taking vigorous development of China’s duty-free market. We protect the

of Model for World-class Specialised and Innovative Enterprise action in line with the Belt and Road Initiative actively exploring rights and interests of employees care about their development

from SASAC. As a responsible central state-owned enterprise the overseas markets and promoting tourism retail business in order and continuously optimise our career platform to promote the

company has been working with stakeholders to actively embrace to “Go Global”. In recent years the company has steadily pursued development of both employees and the company. We care for

the world and lead the development of the global tourism retail tourism retail opportunities in Cambodia Singapore and other the planet protect the environment and engage in green and

industry. Southeast Asian countries. low-carbon operations. The company is acting quickly to analyse

the potential challenges that climate change may bring deploy

Responding to National Strategies as a Central State-owned Collaborating in Pursuit of Innovation and Sustainable mitigation and adaption measures and explore opportunities.Enterprise Development

The company actively supported national strategies strived to We fully leveraged our influence in the supply chain and Over the past year CTG DUTY-FREE has been strengthening its

fulfil its duties as a committed central state-owned enterprise and cooperated with multiple partners – from brand partners to capabilities actively embracing the world and acting as a leader

continued to uphold its original beliefs and mission. During the consumers – to jointly explore innovative paths to green and in the duty-free tourism retail industry. The company is using

year we comprehensively promoted rural revitalisation and spent sustainable development and we cooperated with upstream international events such as the China International Consumer

CNY13.37 million on assistance efforts to consolidate and expand brand partners and downstream consumers to carry out green Products Expo (CICPE) and the Asian Games to tell a new story

achievements in assistance projects strengthen assistance at all environmental protection activities. In this way we are conveying about the tourism retail industry in China and it is calling for

levels promote the development of rural industries improve living the “green cdf” message to our customers. The company enhanced cooperation among all stakeholders to embrace a bright

and working conditions in rural areas and forge beautiful rural continued to engage in in-depth cooperation with brands to future for the industry. We are looking forward to a prosperous

areas. The company also supported local economic development jointly explore social benefits in the fields of art and culture while future alongside all our stakeholders. During this new development

and facilitated the construction of Hainan Free Trade Port. also encouraging partners to implement ESG concepts and stage we aim to help create a new development landscape and

We focused on our major responsibilities and core business assisting brands in developing ESG products. The company is fully pursue win-win results for the environment society and economy

committed to meeting customers’ desire for a better life. We offer a and we are fully committed to delivering results that meet societal

wide variety of merchandise to meet consumers’ shopping needs expectations.while also promoting the coordinated and sustainable development

of the environment society and economy.China Tourism Group Duty Free Corporation Limited

Chairman and General Manager

Mr. WANG Xuan

March 2024

Mr. WANG Xuan

China Tourism Group Duty Free Corporation Limited

Chairman and General Manager

04 05China Tourism Group Duty Free Corporation Limited * 2023 Environmental Social and Governance Report Social Responsibility Performance Overview

Social Responsibility Performance Overview

Economic Social Environmental

First class CNY675 billion 1455 well-known brands CNY27.93 million Green building certification

First-class travel retail operator in the world Operating income reaches CNY675 billion About 1455 well-known brands in the world are We invested CNY27.93 million in operation Both Haikou International Duty-Free Shopping Complex and Sanya International Duty-Free

Ranked No. 1 among tourism retail players in our duty-free shops safety organised 663 safety training Shopping Complex Zone C have obtained LEED Gold certification1;in the “Top 500 Most Valuable Brands in CNY67 billion sessions Both Sanya International Duty-Free Shopping Complex Phase 1 Plot 2 Commercial ProjectChina” rankings for the 20th consecutive and Haikou International Duty-Free Shopping Complex Plot 1 have obtained 2-star Green

year Net profit attributable to shareholders of 16789 employees CNY13.37 million Building pre-certification.listed company reaches CNY67 billion

Ranked first There are 16789 total employees as at the end We spent CNY13.37 mi l l ion in rura l 25.78 million shopping bags

CNY64 billion of 2023 vitalisation implemented 10 assistance

Ranked No.1 in China in terms of number projects and attracted CNY2.60 million to In Hainan province more than 25.78 million shopping bags that meet environmental

of duty-free brands Various taxes and fees paid in 2023 reach 100% training coverage assistance projects protection requirements have been provided effectively reducing the generation of

With the wildest product range and the CNY64 billion non-degradable plastic waste

most diversified portfolio m o r e t h a n 5 4 7 0 0 0 32 million

350000 training hours 18 LEED Certifications

Top two 32 million registered cdf membersSelling over 46 types of goods and over The employee training coverage reaches 100% 18 stores/counters have received LEED certifications including 16 LEED Gold certifications

We operate the two largest duty-free 350000 SKUs of goods with more than 547000 training hours in total. and 2 LEED Sliver certifications

shops in the world – Haikou International

Duty-Free Shopping Complex and Sanya 45:55 0.0177 Tons of standard coal/m2

International Duty-Free Shopping Complex

The ratio of male and female employees is 45:55 0.0177 Tons of standard coal/m2 of comprehensive energy intensity

and females in the Board of Directors and the

Most comprehensive Supervisory Committee account for 37.5%

With full coverage on on-board aircrafts females in the senior managerial roles account for

0.04 tonnes of carbon dioxide equivalent

borders foreign ships passenger stations 20% and in middle managerial roles account for Greenhouse gas emissions per square metre are 0.04 tonnes of carbon dioxide equivalent

railway stations diplomatists cruises and 35%.downtown channels we are the travel

retail operator with the complete types of

duty-free shops and the largest number of

retail stores in a single country worldwide

1 LEED or Leadership in Energy and Environmental Design is a rating system devised by the United

States Green Building Council (USGBC) to evaluate the environmental performance of a building.* All the above are data as of the end of 2023 or for the year 2023. Please refer to the 2023 Annual Report

for details of financial data.三亚国际免税城

06 07China Tourism Group Duty Free Corporation Limited * 2023 Environmental Social and Governance Report About the Company

Statement of the Board of Directors About the Company

Company Overview

China Tourism Group Duty Free Corporation Limited (stock abbreviation: CTG DUTY-FREE; stock code: 601888.SH 01880.HK) was listed

on the Shanghai Stock Exchange in October 2009 (previously known as “China International Travel Service Co. Ltd.” the stock abbreviation

“China CITS”) and was listed on the Main Board of the Hong Kong Stock Exchange in August 2022. Our company mainly engages in duty-

free business including the wholesale and retail of duty-free commodities such as fragrance luxury jewellery watch etc. Moreover the

company is also involved in investing and developing commercial complexes with duty-free business as the core.Our company has established long-term and stable cooperations with 1455 renowned brands worldwide. It also has set up over 200 duty-

free shops in more than 30 provinces cities autonomous regions and special administrative regions in China and also Cambodia covering

airports on-board aircrafts borders passenger stations railway stations foreign cruise supply diplomatists cruises and downtowns

(offshore departures) in these regions. Its eight customs-supervised logistics centres in Dalian Qingdao Shanghai Shenzhen Haikou

Sanya Hong Kong SAR and Beijing cover the entire country. Its main sales channels cover large domestic hub airports in Beijing Shanghai

Guangzhou Chengdu and Hangzhou international airports in Hong Kong SAR and Macau SAR in the Asia Pacific region and Sanya

International Duty-Free Shopping Complex Haikou International Duty-Free Shopping Complex. China Duty Free Group has developed into a

travel retail operator with the most complete types of duty-free shops and the largest number of retail stores in a single country in the world

providing duty-free commodity services to nearly 200 million domestic and foreign tourists every year.The “courageous professional efficient cooperative innovative” corporate culture has been fostered during the company’s development

over the years and it is with this culture that we face challenges bravely and overcome difficulties. In recent years the company’s core

functions and capabilities such as procurement operations channel expansion digitalisation and marketing have been continuously

enhanced. Our business has been steadily transformed and upgraded achieving leapfrog development.In order to standardise the ESG management mechanism and enhance the quality of ESG management CTG DUTY-FREE has established an ESG In the future our organisation will maintain the continuous stable and healthy growth of the duty-free business adhering to the concept

governance structure with the Board of Directors having the highest responsibility and decision-making authority for ESG matters bearing full responsibilities of “customer-centered market-oriented” with “duty-free business” as the core to upgrade the value chain and “tourism retail” as the

for the company’s ESG strategy target management and information disclosure and approving ESG improvement proposals. The Strategy and extension to upgrade the industrial chain to build a more globally competitive world-class travel retail operator.Sustainability Committee mainly conducts surveys and puts forward proposals on the company’s ESG development strategy policies and targets as well

as substantive issues focused by stakeholders. It is also responsible for inspecting the implementation and improvement of ESG activities and reviewing

the company’s reports on sustainable development and ESG matters. The company establishes the ESG Leadership Group which is headed by the

Chairman of the company; the deputy head of it is the General Manager; and its members include heads of departments. The ESG Leadership Group is

responsible for managing and coordinating the company’s ESG-related work which establishes and improves the company’s management system and

operating mechanism for ESG-related work and it also formulates ESG work plans and integrates the company’s development strategy image branding

and operations with ESG concepts. Corporate Culture

Based on the external environment and the development strategy of the Group CTG DUTY-FREE has identified 13 key ESG agendas through the

engagement of stakeholders during the reporting period and thus clarified its critical tasks including excellent service experience customer satisfaction

health and safety of products employee welfare and satisfaction health and safety of employees employee career development and skill upgrading

employee diversity and equal employment the integrity of operations supply chain management information security and privacy protection response Brand Positioning Core Values Corporate Mission Operation Concept

to national strategies collaborating with brand partners to promote environmental protection response to climate change. The above issues have been The world’s leading Courageous Share the joy of Customer-centered

examined and the performance has been improved in routine work and target-oriented management has been carried out accordingly. In the future we travel retail operator professional efficient shopping and extend the market-oriented

will continue to regulate our sustainable development management strategy and promotion methods according to the expectations of stakeholders and the cooperative innovative enjoyment of travel

actual operation of the Group in an effort to continuously improve the level of sustainable development.The Report provides detailed information on the progress and achievements regarding CTG DUTY-FREE’s ESG efforts in 2023 and has obtained approval

from the Board of Directors on 27 March 2024. The Board of Directors and all directors of the company hereby guarantee that the information presented

in this Report is free from any false records misleading statements or material omissions and undertake joint and several liabilities for the authenticity

accuracy and completeness of the information.

08 09China Tourism Group Duty Free Corporation Limited * 2023 Environmental Social and Governance Report About the Company

Our Milestones 2020

* Acquired Hainan Duty-free Co. Ltd.Over the past 40 years the company has developed into * We became the world’s largest travel retail operator;

the membership system of cdf was officially launched

the world’s leading travel retail operator by successfully marking a historic breakthrough in online and offline

seizing opportunities and addressing challenges: 2011 interconnection domestic and overseas interconnection.Our Sanya Downtown Duty Free Store

commenced its business operation as the first

offshore duty-free store in Hainan province.

1984

The PRC State Council officially authorised the 2004

establishment of China Duty Free Company. We are selected as one of the

franchised retailers for the 2008 2014 2021

Beijing Olympic Games.* Our Sanya International Duty-Free Complex We remained the No.1 travel retail operator in

commenced its business operation as the the world.

1989 first travel retail complex in China. It was

the largest standalone duty-free store in the

An office of China Duty Free

world in terms of sales area at that time.Corporate was established in

Hong Kong SAR to strengthen * Our first overseas downtown duty-free store

the overseas procurement and 2006 commenced operation in Angkor Cambodia.distribution capability of duty- We entered the international

free merchandise. market and established its

first sales terminal in the

overseas market. 2017 2022

Acquired Sunrise Duty Free (China) Co. Ltd. * Listing on the Hong Kong Stock

Exchange

2009 * Grand opening of Hiakou International

We successfully listed Duty-Free Shopping Complex the

on the Shanghai Stock largest single duty-free shop worldwide

1990 Exchange. * Ranked as the world’s largest travel

Our Beijing Downtown Duty Free Shop the first downtown duty-free store in China retail operator for the three consecutive

commenced its business operation. 2018 years

* Acquired Sunrise Duty Free (Shanghai)

1996 Co. Ltd.

Our Heihe Border Duty Free Store the first duty-free shop on the border of Asian countries * The first independent cruise duty-

was established. free shop in China commenced its

1997 business operation. 2023

We began to sell domestically produced goods in duty Awarded the title of Model for World-class Specialised

free shops showcasing the Chinese domestic brands and and Innovative Enterprise by SASAC

products to the world.

10 11China Tourism Group Duty Free Corporation Limited * 2023 Environmental Social and Governance Report About the Company

Honours and Awards2

External Governance and Investor Relations Awards Received in 2023:

1 Awarded the title of Model 3 Received the “Hong Kong Equity 5 Recognised among the Listed 6 Included in the “2023 Phoenix 8 Received the “Investor 9 Received the “Best Responsibilityfor World-class Specialised Issue of the Year 2022” award Companies with the Best Star Hong Kong Stock Best Relations Management Advancement Award” and

and Innovative Enterprise by from IFR Asia Competitive Edge in the “Golden Listed Companies” selected Award” in Securities Market “Best Corporate GovernanceSASAC Phoenix Tree Awards” at the by Phoenix TV and Phoenix Weekly’s 2023 Capital Market Responsibility Award” from Sina

Chinese Listed Companies New Media Crystal Ball Selection Finance

Investment Value Summit jointly

organised by the China Industrial

Cooperation Association Ji’an

Fintech Corporation and TMTPost

2 Selected into the “Grade A 4 Included in the 7 Received the “Best IR Team” 10 Received the “Best Digital

(Excellent) Companies” in 5th session award and “Most Honoured Investor Relations Award”the Information Disclosure “Best Listed Company (Consumer and Non- “Best Information DisclosureEvaluation of the Shanghai Companies” Staples Category)” award in the Award” and “Best ESG Award”Stock Exchange for eight selected by “New “Institutional Investor 2023 Asia at Excellence in IR’s 7th Awardsconsecutive years Fortune” (Ex-Japan) Executive Team” Ceremony

selection

2 The list of honours and awards is not exhaustive.

12 13China Tourism Group Duty Free Corporation Limited * 2023 Environmental Social and Governance Report About the Company

Brand Communication Awards Received in 2023: ESG and CSR Awards Received in 2023:

11 Ranked first in the 13 Received the “Most 15 Received the “Annual 16 Included in ESG-Pioneer 18 Recognised among 20 Included in the “ESG 22 Received the Best ESGselection of “China’s 500 Influential Communications Influential Brand 100 Index of Central the “Outstanding ESG Excellence TOP 20 Practices Award for ListedMost Valuable Brands Award” in the “2023 Caijing Communications” award Enterprises released by Practice Cases of Listed Ranking” at the “2023 Companies in 2023 fromof 2023” for the tourism Magazine Evergreen at the 8th Southern Weekly the parallel forum of the Companies” by the Zero-Carbon Mission Yidong and Value Onlineservice sector by World Awards” selection Brand Conference sixth China Enterprise China ESG Observers International ClimateBrand Lab Forum under the guidance Consortium Summit”

of the Bureau of Social

Responsibility under

SASAC and China Social

Responsibility 100 Forum

17 Included in the “Leading 100 19 Received the ESG Pioneer 21 Recognised among the “Top 100ESG Cases of Chinese Listed Award for Listed Companies Best ESG Practices among ListedCompanies” selection at the in 2023 at the “8th Golden Companies in China for 2023” by

2nd Sustainable Investment and Orange Awards of Times WindFinancing (ESG) and Free Trade Finance” organised by

Port Construction Forum held in Guangdong Times Media

12 Recognised among the “Top 20 Chinese 14 Awarded the title of “Most Influential Cultural Sanya GroupTourism Groups in 2023” at the “2023 and Tourism Brand Value CommunicationChinese Tourism Group Development Enterprise of 2023” at the 10th Culture andForum” sponsored by the China Tourism Tourism Integration and Innovation Forum

Academy and China Tourism Association organised by Xinhuanet

14 15China Tourism Group Duty Free Corporation Limited * 2023 Environmental Social and Governance Report Topic 1

Topic 1

Proactively Responding to National Strategies by Fulfilling

our Mission as a Central State-owned Enterprise ▍Consolidating and Expanding Achievements in Targeted assistance

Assistance for Immediate Need Assistance by Consumption

To strengthen its achievements in assistance projects the In an effort to promote consumption the company has taken various measures such as

CTG DUTY-FREE actively responds to United Nations (UN) Sustainable company spent CNY300000 in the “Temporary Relief” setting up “Xing Lv Yun Pin” stores at Sanya International Duty-Free Shopping Complex andDevelopment Goals (SDGs) 1 and 10 by extensively engaging in rural assistance project (formerly known as the “Together – Haikou International Duty-Free Shopping Complex and establishing WeChat groups amongrevitalisation with a view to promoting common prosperity. Rescue and Relief” project) in Menglian County to alleviate

commissioned officials to facilitate the sales of local agricultural products and encourage

pressure on villagers experiencing difficulties as a result of farmers to participate in trade fairs. Harnessing our extensive customer resources we have

illness emergencies accidents and other issues. In 2023 also strived to promoted the sale of local specialty products across the country which has

a total of 58 people benefited from the “Temporary Relief” significantly increased the income of local farmers.assistance project.the company spent CNY300000

Case study: “Xing Lv Yun Pin” store at Haikou

in the “Temporary Relief” assistance project

International Duty-Free Shopping Complex

The “Xing Lv Yun Pin” store opened on the

same day that Haikou International Duty-Free

Shopping Complex officially opened. At the

store visitors can purchase a wide variety of

local specialties such as ice wine beef jerky

tea preserved fruit leisure food honey and

coffee sourced from seven cities or counties

in four provinces (Ximeng County Menglian

County Shangri-La City and Deqin County

in Yunnan Province Linxia City in Gansu

Province Bayingolin Prefecture in Xinjiang

To meet its social responsibility as a corporate citizen the company is fully committed to responding to national strategies fulfilling its original Province and Lichuan County in Jiangxi

Xing Lv Yun Pin store in Haikou International

aspirations and missions and creating sustainable economic social and environmental value. Province). Duty-Free Shopping Complex

Comprehensively Promoting Rural Revitalisation to Facilitate Common Prosperity ▍Strengthening Responsibility for Assistance at All Levels

Enhancing Organisational

The 20th Communist Party of China (CPC) National Congress has showcased the Chinese path to modernisation and the ambition to Leadership

achieve the great rejuvenation of the Chinese nation. Rural revitalisation is key to the effort to build a modern socialist country in an all-round

way. In 2023 the company spent CNY13.37 million in rural vitalisation and implemented 10 targeted assistance projects to promote the In 2023 the company’s Party Committee firmly shouldered

revitalisation of industry talent culture ecosystems and organisations in Menglian and Ximeng counties. In addition the company attracted i ts responsibil ity for targeted assistance. During the

year the Party Committee held four special meetings on

CNY2.60 million in alleviation donations among which CNY1.3 million was provided unconditionally and CNY1.3 million was provided in

improving targeted assistance and implementing the working

the form of an investment. The company also supported various training activities for 277 grassroots county officials 382 leaders in rural mechanism for paired assistance. During two on-site visits

revitalisation and prosperity and 2215 professional technical personnel. In addition the company’s trade unions spent CNY1.335 million to Menglian and Ximeng counties in Yunnan Province the

to procure local agricultural products from Menglian and Ximeng counties and leveraged its advantages as a leading tourism retailer the company’s managements gave instructions to frontline

company assisted in selling agricultural products generating CNY3.93 million in revenue. In addition to promote organisational revitalisation personnels and supervised the assistance projects to ensure

their successful completion in 2023.we conducted Party-building and joint-construction activities as part of our paired assistance efforts. The company’s Party branch in

Kunming signed joint-construction agreements with four grassroots Party organisations in Menglian and Ximeng counties in 2023.Designation of Commissioned

Officials

In 2023 the company successfully completed the rotation of

The company spent CNY13.37 million designated commissioned officials to paired counties. After

taking over the assistance missions the newly designated

commissioned officials continued conducting extensive

surveys of frontline personnels diligently and took the

10 Supported various training activities for assisted in selling agricultural Counting Implemented initiative to organise and implement a number of assistance

2874 products grassroots county projects to promote industrial development cultural tourism 2023 targeted assistance CNY3.93 the living environment talent training and people’s livelihood. projects officials and other categories of million As a result the officials were able to make a significant Photos of assistance work

contribution to the effort to effectively connect assistance

personnel achievements and rural revitalisation in Menglian and Ximeng

16 counties. 17

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▼China Tourism Group Duty Free Corporation Limited * 2023 Environmental Social and Governance Report Topic 1

▍Promoting the High-Quality Development of Rural Industries ▍Improving Living and Working Conditions to Forge Beautiful Rural Areas

Assistance in the Cultural Sector Assistance for Education

The company is dedicated to helping Menglian and Ximeng counties maintain their unique ethnic minority cultures while also exploring the The company continued supporting the “Star of Hope” teachers programme. During the year we launched a paired assistance project between Zhenxiong

path to rural revitalisation through the development of the cultural sector. Senior High School the affiliated school of Yunnan Normal University with Menglian County to enhance the collaboration on teaching management and leading

educational resources with a view to promoting education in Menglian County. The company’s contribution to the “Star of Hope” teachers programme has

enabled students in Menglian and Ximeng counties to access high-quality education resources and pursue a better education.Akha Swing: a wooden swing for folk activities used by Hani ethnic A park used for fishing by Hani ethnic minorities in Yongqian old village

minorities in Yongqian old village

Activities under the “Star of Hope” programme

Rural Construction

To vigorously develop rural tourism and improve farmers’ ability to grow their income and pursue a better life the company has made steady contributions to the

Beautiful Village project which aims to assist villagers in shaping their towns into pleasant ethnic settlements that preserve their rural character. As part of this

initiative the company launched a rural tourism construction project in Laga Yongqian old village Mangxin Town Menglian County. In 2023 we implemented

the fourth phase of the project which mainly included constructing a new tour path around the village improving the village’s landscaping and decorations and

beautifying housing in the village.A Hani ethnic restaurant in Yongqian old village decorated for the Eni Aka Stage: an event venue for Hani ethnic minorities in Yongqian old village

Juema Banquet

Assistance for Rural Industry

We strive to use innovative business models to cultivate new industries in rural areas. In 2023 under the government’s “One Industry in One County” strategy

the company focused on the avocado industry in Menglian County spending CNY1.06 million to comprehensively improve the county’s avocado industry in

five areas: market orientation organised development green transformation specialisation and scale expansion. These measures have effectively promoted

the healthy development of the avocado industry extended the industry chain and broadened sales channels. With the help of the company’s efforts in 2023

Menglian County’s avocado industry generated revenue of more than CNY500 million and sales of fresh fruit exceeding 10000 tonnes.Greenery around Yongqian old village

People in Menglian County receiving session 1 of a training course on avocado industry management from the An avocado product sample

Chinese Academy of Tropical Agricultural Sciences under the theme of “One Industry in One County”

The company attaches great importance to the transfer of technical know-how and to this end it continuously makes efforts to hold training sessions for rural

brokers (bellwethers of rural revitalisation and prosperity) covering the resource economy port economy livestream e-commerce and the development of the An aerial view of Yongqian old village A Road of Hani ethnic minorities Houses in Yongqian old village

planting and breeding industries. In this way we are cultivating high-quality rural brokers providing job opportunities for villagers and taking measures to boost

their annual incomes with a view to improving villagers’ working and living conditions and supporting rural revitalisation in Menglian and Ximeng counties.

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▼ ▼China Tourism Group Duty Free Corporation Limited * 2023 Environmental Social and Governance Report Topic 1

Supporting Local Economic Development and Facilitating the Construction of Hainan Leveraging brands services and creativity the company has been able to steadily introduce premium-brand flagship stores that offer a unique shopping

experience and set an example for innovation in duty-free consumption in China.Free Trade Port and the Guangdong-Hong Kong-Macau Greater Bay Area (GBA)

Focusing on its major responsibilities and core business the company has strived to seize favourable opportunities in Hainan – which is successfully competing

with overseas destinations to attract tourists and consumer spending – in order to actively facilitate the construction of Hainan Free Trade Port and the GBA.▍Laying Deep Roots in HainanIn its effort to explore investment and development opportunities in Hainan the company adheres to the business philosophy of “engaging in trusted businessoperations and providing excellent services” and the strategy of “laying deep roots in Hainan”. Taking advantage of the favourable policies for Hainan Free Trade

Port we have opened six offshore duty-free stores in Haikou Sanya and Boao striking a geographical balance in an effort to fully cover visitors leaving Hainan

by “plane ship or train” and enhance their shopping experience. Moreover Sanya International Duty-Free Shopping Complex and Haikou International Duty-Free

Shopping Complex – located at the southern end and northern end of Hainan Island respectively – are strongholds in our Hainan network and act as integrated The company is also committed to promoting the upgrading of the tourism industry. For example

tourism retailers with a dual focus on “duty-free retail and cultural tourism” with duty-free business as the foundation. we have organised joint promotion activities at the Hainan Tourism Consumption Carnival for two

consecutive years. Through these types of initiatives we are promoting common development and

leveraging the advantages of the industry chain to position Hainan as a premium tourism destination for

global consumers.We are committed to continuously satisfying consumers’ growing demands and pursuit of a better life. To

this end we are steadily introducing more brands and better services and providing a more convenient

and pleasurable retail experience to Hainan’s offshore duty-free consumers with a view to offering

travellers the joy of “seeing the world and shopping at cdf”.Case study: cdf inaugurated the Global Beauty Plaza in Sanya International Duty-Free

Shopping Complex Block C

Haikou Riyue Square Duty-Free Store cdf Sanya International Duty-Free Shopping Complex Block C and the Global Beauty Plaza were inaugurated on 28 December 2023. The Global Beauty

Plaza which is housed within Block C offers an array of top international beauty brands unique design styles high-quality services and a blend of fashion

and artistic elements. It is designed to provide consumers with better travel and retail experiences and enhance both cdf Sanya International Duty-Free

Shopping Complex and Hainan’s position as world-class tourism and shopping destinations.Haikou Meilan International Airport Project Style

Duty-Free Store

Haikou International Duty-Free Shopping Complex cdf Sanya International Duty-Free Shopping Complex Block C which covers an area of 78000

square metres was jointly designed by Büro Ole Scheeren and Valode & Pistre Architectes. The

overall design was inspired by a docked yacht and tells the story of a “Fragrant Journey”. The atrium

design features three different themes: “The Journey of a Seed” “Green Wonderland”. The art

corridors which link Block C to Blocks A and B were designed with the themes of “A tunnel of time”

and “A Corridor of Flowers”. The design imbues Block C with a unique ambience and style while

forming a cohesive connection between the new block and other structures in the complex. It also

highlights Hainan’s tropical climate and natural landscape and offers an immersive experience for

visitors.Brand Introduction

cdf Sanya International Duty-Free Shopping Complex Block C expansion has been accompanied by

a string of high-profile openings greatly strengthening the complex’s beauty offerings. Beauty giants

such as Lanc?me Estée Lauder and Dior have all introduced their first-ever two-storey travel retail

flagship stores while Maison Francis Kurkdjian and Pat McGrath Labs have chosen to showcase

their latest and China travel retail-exclusive designs and concepts in Block C. The introduction

Qionghai Boao Duty-Free Store of these new shops provides a wider selection of retail options and a more interesting shopping

CDFG Sanya Airport Duty-Free Store experience to consumers.cdf Sanya International Duty-Free Shopping Complex currently

offers over 850 Chinese and international brands

Sanya International Duty-Free Shopping Complex

20 21China Tourism Group Duty Free Corporation Limited * 2023 Environmental Social and Governance Report Topic 1

Cooperating Overseas to Improve the Company’s Brand Image under the Belt and Road Initiative

Customer Experience

In addition shoppers can enjoy a variety of high-quality services The Report to the 20th National Congress stressed the importance

and facilities at cdf Sanya International Duty-Free Shopping of promoting high-quality Belt and Road cooperation. The Belt and

Complex Block C including Hainan’s first multi-brand Spa Road Initiative provides a direction for Chinese enterprises on how

Centre. Featuring an impressive brand mix and exclusive to implement their internationalisation strategies. As the growthlimited-edition products the Spa Centre promises customers “an trend of global tourism remains positive we are taking action inimmersive multi-dimensional sensory experience and a serene line with the Belt and Road Initiative actively exploring overseasspace for physical and mental healing”. markets and promoting tourism retail business in order to “GoGlobal”.

7+1 The company is deeply engaged in tourism retail business in Southeast Asia and it has steadily expanded in Cambodia and

other emerging markets. In 2013 Cambodia’s tourism industry

Brand Matrix and Exclusive Limited Edition Products

experienced rapid development seeing double-digit growth in terms

of global visitors and Chinese visitors. Against this backdrop we

▍Facilitating the GBA’s Development into a World-Class Bay Area successfully opened our first duty-free store in Cambodia in 2014.On 16 October 2023 DUTY ZERO the first cdf airport duty-free store in

Southeast Asia opened for trial operation.At the 19th and 20th National Congress of the CPC the Central Economic Work Conference and other major conferences and occasions

President Xi Jinping has provided important instructions on promoting the construction of the GBA. The company has actively responded to By the end of 2023 the company had opened three downtown duty-free stores in Phnom Penh Siem Reap and Sihanoukville. The

national strategies vigorously developed the duty-free economy attracted Chinese consumers who would have otherwise sought overseas company is also promoting duty-free projects in Southeast Asia and other key areas covered by the Belt and Road Initiative with a view to

consumption assisted to build an international consumption hub and forged the new “dual circulation” development pattern. playing a leading role in the international tourism retail market.The company has seized development opportunities in the GBA by opening duty-free stores in Guangdong Hong Kong and Macau with ▍Enhancing Cultural Exchanges between the Chinese and Cambodian People

a view to facilitating the construction of the GBA. At present the company operates outbound and inbound duty-free stores in Guangzhou

Baiyun Airport as well as a number of duty-free stores in Hong Kong and Macau. The aforementioned stores include city stores airport To improve local employment conditions the company prefers to recruit local residents

stores and cruise stores. in Cambodia and the proportion of local to total employees at CDFG (Cambodia) Limited

exceeds 93%. Moreover under our “Journey of Love” initiative we provide targeted

The company has vigorously developed “Smart Stores” to support consumption that integrates online and offline capabilities. Relying on assistance to art welfare homes for Cambodian children. Since the end of 2016 the

technologies such as passenger flow statistics and analysis programs in-store virtual reality (VR) monitoring and electronic price tags we company has carried out public welfare activities once a quarter for eight consecutive years

continuously innovate our services to keep up with the latest consumer experience trends. The company’s array of automated and digital delivering a positive impact on society.tools digitises the entire consumption chain and effectively improves stores’ operational efficiency.In recent years CDFG (Cambodia) Limited has rapidly expanded its market share and

In 2023 we continued to promote the expansion and operational planning of new stores through AR and VR smart retailing. As a result we promoted the construction of ancillary facilities for local tourism alongside the Cambodian

have achieved the successful online launch for DUTY ZERO airport & city stores and cdf Beauty stores through the VR technology and the government and other organisations. In this way we are meeting the growing demand from

online launch for CDFG (Cambodia) Limited and cdf Membership Club through AR technology. cdf Sihanoukville International Airport Duty-tourists and forming a sustainable development pattern that delivers mutual benefits. Free Store

Case study: The company launches cross-store AR and VR marketing activities during festivals Case study: Expanding diversified global duty-free business to

facilitate Chinese enterprises’ efforts to “Go Global”

During the Halloween and Christmas holidays the company launched cross-store AR and VR marketing activities. Based on a cross-

platform marketing model with the theme of “trying-on makeup/cocktails + products” users were able to enjoy various scenarios and The company cooperated with Moutai to open its world’s first overseas airport store

engage with user and operator terminals that supported product interaction visualisation jump logic product display icon size changes in the DUTY ZERO by cdf Siem Reap-Angkor International Airport Duty-Free Store

and icon customisation. During the activities more than 1100 SKUs were launched by our overseas smart retail stores and Membership bringing overseas customers Eastern culture and providing a new sales platform for

Club and month-on-month traffic visits new customers sales figures and other indicators significantly improved after the activities of national liquors seeking overseas expansion. This cooperation is an effective move for

Halloween Christmas and New Year Holiday. the company to diversify its global duty-free business.Facilitate Moutai to open its world’s first

store in an overseas airport

▍Promoting Friendship between the Chinese and Cambodian People by Telling China’s Story

Based on its experience jointly organising two sessions of the “Global Consumption Innovation & Duty-Free and Travel Retail Conference”

with the Hainan Provincial Bureau of International Economic Development the company actively prepares for influential international events

in Cambodia and promotes cross-border exchanges and cooperation at major international conferences and events to demonstrate

the economic and cultural charm of China. In our overseas operations we conduct in-depth surveys of local customs and delicately

integrate them with Chinese elements to tell China’s story in new ways. In this manner we are able to showcase the true version of China

and improve the international community’s understanding and recognition of our country. During the implementation of key projects the

C-end interfaces for AR and VR activities during Halloween C-end interfaces for AR and VR activities during Christmas company strives to improve local people’s well-being and enhance their sense of achievement happiness and satisfaction with the aim of

delivering mutual benefits and laying a solid foundation for mutual understanding.

2223

▼▼

▼

▼

▼China Tourism Group Duty Free Corporation Limited * 2023 Environmental Social and Governance Report Topic 2

Topic 2

Capitalising on Our Competitive Edge to Jointly Uphold ESG

Concepts with Brands Case study: The company and Clarins join hands with the Blue Ribbon Ocean Conservation

Association to plant trees on Hainan Island

Under the theme of the “A Beautiful Journey towards Environmental Protection” Clarins – a French natural skincare brand – set up a

pop-up store in Haikou International Duty-Free Shopping Complex in November 2023. Forest Stewardship Council (FSC)-certified paper

was used for all printed products and customers used a digital check-in system to take part in activities at the pop-up store. Moreover

the store itself was built using raw materials that had received environmental protection certifications.To actively respond to UN SDG 12 CTG DUTY-FREE focuses on

Meanwhile the company Clarins’ Tourism Retail team and the Blue Ribbon Ocean Conversation Association jointly carried out public

fulfilling its corporate social responsibility and pursuing excellence welfare activities to encourage Chinese consumers to make “green commitments to beauty”. For each commitment made a mangrove

to provide consumers with quality products and services. tree was planted by Clarins in the East Harbour National Nature Reserve with a view to giving back to the local community.Clarins counter Electronic check-in for the tree planting activity

The company fully leverages its influence in the supply chain and cooperates with multiple partners – from brand partners to consumers – to Case study: Cooperating with Edrington Group and the Blue Ribbon Ocean Conservation

jointly explore innovative paths to green and sustainable development. Association to jointly plantcoastal forest

President Xi Jinping stated “We must respect science and fulfil our responsibility to mangrove protection”. In response to these

Taking Green Actions and Joining Hands with Brands to Deliver Green Value important instructions in April 2023 the company six cdf stores in Hainan Edrington Group and the Blue Ribbon Ocean ConservationAssociation carried out mangrove restoration and planting activities in the Sanya Qingmei Port Mangrove Reserve with the theme of “Co-planting coastal forest”.The company connects upstream brands and downstream customers in building a consumer space that integrates fashion and

environmental protection. In this way we convey the “green cdf” message and encourage customers to embrace the philosophy of

sustainable consumption with the goal of promoting the transition to a better consumption ecosystem.Case study: Unlocking retail potential to help SEKKISEI carry out environmental protection activities

In 2009 SEKKISEI launched the “SAVE the BLUE” environmental protection project

which originally aimed to protect coral reefs. In 2022 the project was expanded to six cdf duty-free stores in

Hainan where it had helped restore about 1500 square metres of forest as of the end Hainan also made efforts to

of 2023. publicise

During the period from 1 July 2023 to 31 August 2023 for each bottle of designated a total of

duty-free product sold SEKKISEI donated CNY5 to environmental protection

organisations in Hainan province and six cdf duty-free stores in Hainan also made CNY47533

efforts to publicise this initiative. As a result of these efforts a total of CNY47533 was was raised to protect the

raised to protect the marine environment of Hainan Island. marine environment Tree planting activities

2425

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▼ ▼China Tourism Group Duty Free Corporation Limited * 2023 Environmental Social and Governance Report Topic 2

Cooperating in Commercial Activities to Deliver a Positive Impact on Society Assisting Brands in Implementing ESG Concepts

The company continues to engage in in-depth cooperation with brands to jointly explore social benefits in the fields of art and culture. By The company takes concrete actions to put into practice the philosophy of sustainable development such as by encouraging partners to

exploring opportunities for diversified and all-round cooperation with international brands we can provide consumers with better products implement ESG concepts and assisting brands in developing ESG products. In this way we are promoting the coordinated and sustainable

and shopping experiences and ultimately better meet their needs. development of the environment society and economy.Case study: Collaborating with Kiehl’s to protect promote and pass down Hainan’s Case study: Cooperating with FIYTA and the Blue Ribbon Ocean Conservation Association to carry out “Islandintangible cultural heritage Cleaning Activities” launch cdf’s special edition green-themed wristwatch

The company recently joined hands with Kiehl’s and Hainan Binglanggu Li and Miao Cultural Heritage Park to protect promote and pass down Hainan’s

On 30 October 2023 the company together with FIYTA and the Blue Ribbon Ocean Conservation

intangible cultural heritage. In September 2023 Kiehl’s opened a counter at Haikou International Duty-Free Shopping Complex to give customers the

Association carried out “Island Cleaning Activities” on uninhabited Xigu Island Hainan province.opportunity to immerse themselves in the Li people’s culture. Participants who purchased designated items received patterned satchels that had been

Volunteers were organised to clean up litter on the island and restore the damaged ecosystem with

handmade in an ethnic style by elderly Li women.a view to promoting sustainable development and supporting the island’s role as a clean and green

habitat for wildlife. During the activity a total of 486 kilogrammes of marine garbage were collected

and disposed of.In December 2023 the company cooperated with FIYTA to launch a special edition green-themed

the “J-20” blue ocean watch in cdf stores. The watch’s strap is made of recycled plastic from the

sea to enhance customer awareness of the severe plastic pollution and encourage more people to

reduce the use of plastic in their daily lives. In addition “Ocean Guard Certificates” were jointly issued

by the Blue Ribbon Ocean Conservation Association the company and FIYTA to watch buyers

to recognise their use of recycled materials which will help protect our blue oceans and promote

sustainable development.Consumers enjoyed an immersive experience that took inspiration from the Li people’s original ecological style Case study: The company encouraging brands to promote green products

The company actively cooperates with brands to introduce green sustainable and renewable products at cdf stores. This represents

one way in which we are facilitating environmental protection and the development of the circular economy and encouraging brands to

Case study: Introducing M. Chapoutier an inclusive engage in sustainable research & development.organic wine brand

TUMI Tory Burch Prada

M. Chapoutier is one of the oldest and most storied wineries in the Rhone Valley of France. Alpha Bravo’s products as The outer layers of Tory Burch’s Ella Re-Nylon series products are composed of ECONYL

It interprets the wine style of different plots in the Northern Rhone Valley in an organic and well as women’s bags under Bio handbags are crafted from a regenerated nylon a material refined from waste

bio-dynamic way by using wild yeast strictly controlling yield and steadily improving its the VOYAGEUR brand are bio-based leather alternative called plastics fishing nets and textile fibre waste

winemaking process. In 2023 the company screened and selected 23 quality wines from first- green products that use Bio-Tex Susy; recycled from the sea through cooperation between

hand allocations sourced directly from the brand. Notably the blind can read the bottle labels recycled nylon as body Prada and spinning manufacturer Aquafil;

by touching them which reflects a culture of openness and the spirit that underlies the sharing fabric;

of good wines.Case study: The company and Qeelin unveil a

stunning Spring Festival art installation at Sanya Photos from Prada

International Duty-Free Shopping Complex

In February 2023 the company in cooperation with Qeelin – a high-end jewellery brand

owned by world-class luxury group Kering – successfully held a stunning art installation Longchamp British brand

exhibition with a Spring Festival theme at Sanya International Duty-Free Shopping Complex Le Pliage Original series and Le Pliage Green Travel Be

presenting consumers with a richer duty-free shopping experience and adding a special series products are made of recycled nylon Has launched

sparkle to the holiday. The installation’s decorations such as the red Wulu (gourd) helped refined from fishing nets carpets floor mats products made

cultivate an auspicious atmosphere warmly welcoming visitors from around the world and and industrial waste delivering a message that of renewable

the blooming Chinese flowering crabapple provided a sense of happiness and prosperity. In promotes waste recycling. These products have or recyclable

this way the company and Qeelin collaborated to convey best wishes for peace happiness received Global Recycled Standard (GRS) 4.0 materials that

and good luck to all consumers while also integrating traditional Chinese culture with modern certification. meet the GRS.design elements to showcase the unique charm of the country’s traditional culture.

2627

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▼The Journey of a Seed

01 Principles of 01 GovernanceRobust Governance System for 30Long-term Stable OperationsCTG DUTY-FREE actively responds to United Nations (UN) Sustainable Development Goals (SDGs) 16 and 17 and has been continuously Exercising Stronger Governance to 33improving corporate governance and empowering corporate sustainability with ESG. Implement ESG ConceptsComplying with Commercial Ethics to 38

Reinforce Internal Control ComplianceChina Tourism Group Duty Free Corporation Limited * 2023 Environmental Social and Governance Report Principles of Governance

Robust Governance System for Long-term Stable Operations

In 2023 we improved the efficiency of corporate governance and successfully completed the election of the Board of Directors in

accordance with the principle of “standardisation efficiency and smoothness”. The company strengthened support for independent

▍Corporate Governance directors to assist them in performing their duties and provided professional decision-making communication and information support to

new independent directors to ensure that decisions made by the Board are reasonable efficient and precise. In accordance with changing

Robust Governance System regulatory rules in China and overseas we will continue to refine the corporate governance system provide compliance management

training and improve the compliance awareness of all staff members especially directors supervisors and executives.The company has established a governance system consisting of the Party Committee General Meeting of Shareholders the Board of

Directors the Supervisory Committee and the Management with a clear division of authority responsibilities and regular operations. The

Party Committee plays a leading role in “setting the direction managing the overall picture and ensuring implementation” and implements Professional backgrounds of Board members

the decisions and plans made by the CPC Central Committee and national development strategies. The General Meeting of Shareholders

represents the highest decision-making authority and plays an overall guiding role in the company’s operation and development. The Board Name Retail Finance & Digital accounting Legal transformationof Directors is accountable to the General Meeting of Shareholders. It plays the role of “setting strategy making decisions and preventingrisks” exercising decision-making power on major issues of the company in accordance with legal procedures and the “Articles ofAssociation” and carrying out its work strictly with the “Articles of Association” and the “Rules of Procedure of the Board of Directors”. Four 1 WANG Xuan √

special committees namely the Strategy and Sustainability Committee the Audit and Risk Management Committee the Remuneration and

Evaluation Committee and the Nomination Committee have been set up under the Board of Directors to provide consultation and advice to 2 CHEN Guoqiang √

the Board on significant decisions. The Supervisory Committee as the supervisory body is responsible for overseeing the performance of

the Board and management. The management level is responsible for the operation implementation and administration and is subject to 3 GE Ming √

the management of the Board of Directors and the supervision of the Supervisory Committee.

4 WANG Ying √

General Meeting

of Shareholders 5 WANG Qiang √ √

(Authority)

Board of Directors Supervisory

(Decision-making Committee ▍Information Disclosure

Body) (Supervisory Body)

The company has formulated the “Information Disclosure Management System” to strengthen its management of information disclosures

and protect investors’ legitimate rights and interests. In 2023 the company disclosed information truthfully accurately completely promptly

and fairly in strict compliance with the Company Law the Securities Law and other laws and regulations as well as the relevant regulations

Board of Directors Board of Directors Board of Directors of the CSRC SSE HKEX. We continue to regard “zero-error” information disclosure as its basic goal and we are steadily improving our Board of Directors

Audit and Risk Strategy and Nomination Remuneration and information disclosure system accordingly to effectively protect shareholders’ right to know and enhance the effectiveness of our information

Management Committee Sustainability Committee Appraisal Committee disclosures.Committee

As an A+H listed company CTG DUTY-FREE has been addressing the differences in capital market regulatory concepts and rules betweenthe A-share market and the H-share market. The company follows the principle of “early start frequent communication and focus on qualityManagement and efficiency” to optimise its system for regular reporting announcements and key information disclosure and to regulate related-party

transactions dividend planning and other details. In 2023 a total of 226 announcements were disclosed and none of them were subject to

any supplements corrections or official inquiries. The company has been awarded an A-grade evaluation for information disclosures by the

CTG DUTY-FREE has formed a corporate governance system based on the “Articles of Association” and concerning the “Rules ofSSE for the past eight consecutive years.Procedure of the General Meeting of Shareholders” the “Rules of Procedure of the Board of Directors” the “Rules of Procedure of theSupervisory Board” and the “Rules of Work of the General Manager” in accordance with the requirements of the Company Law and theCode of Governance for Listed Companies. In 2023 the company revised the “Management Measures for the Standardised Operationsof Affiliated Companies’ Board of Directors” formulated the “Detailed Working Rules for the Investment Review Committee” devised the

“Compilation of the Management System of Domestic Duty-free Subsidiaries” and promoted the standardisation and efficiency of the

company and its affiliated companies’ system of four committees and one level of management. In 2023 a total of 226

As of 31 December 2023 the company’s Board comprised five directors including one female director representing 20% of the board announcements were disclosed

of directors. Three independent directors are mainly drawn from first-class universities research institutes and think tanks. They have held

important positions in large state-owned enterprises financial enterprises and accounting firms and they possess strong professional

qualifications and experience in financial audit legal risk control new retail and digital transformation. Their presence enhances the diversity

and complementarity of the company’s Board in terms of the members’ experience and capabilities. We are committed to cultivating has been awarded an A-grade

a professional and diverse Board of Directors that aligns with the strategic positioning of the company as a world-class tourism retail A

enterprise. All directors have a term of three years and accessible for re-election when their term of office expires if eligible. Independent evaluation for information disclosures by the

non-executive directors are not allowed to hold the position for more than six consecutive years. In terms of educational background 2 SSE for the past eight consecutive years

directors have doctorate degrees and 3 have master’s degrees. The directors have a balanced mix of knowledge and skills. They obtained

degrees in various areas and possess experience from different industries and sectors. The current Board is characterised by significant

diversity in terms of skills experience knowledge gender age and other areas in compliance with the requirements on Board diversity.The company’s senior management consists of 7 executives including 1 female executive representing 14% of senior management

personnel.

30 31China Tourism Group Duty Free Corporation Limited * 2023 Environmental Social and Governance Report Principles of Governance

▍Investor Relations Exercising Stronger Governance to Implement ESG Concepts

The company strictly complies with the Company Law the Securities Law the Listed Company Investor Relations Management Guidance

and other laws and regulations and established the “Investor Relations Management System” to implement investor relations management.Guided by the needs of investors the company continuously enrich and improve the smooth investor communication channels to enhance ▍Focussing on ESG

pertinence and effectiveness. We also improve the quality of investor relationship management and convey corporate investment value to

the market precisely and timely to promote high-quality development of the company.To build a central state-owned enterprise that upholds the principles of

ESG Targets

Diversified Communication Mechanism integrity safety environmental awareness and harmony.The SSE

Investor relations Strategy e-interactive Planning for SustainabilityInvestor emails sessions withreception day platformbrokers With high-quality development as our core direction we have implemented the five development concepts of “innovation coordinationThe Online and Offline going green openness and sharing”. CTG DUTY-FREE actively fulfils its social responsibilities as a central state-owned enterprise and we

investor investor research are preparing for a new stage of development under the direction and goals described in the 14th Five-Year Plan (14th FYP) and are striving

hotline meetings

to achieve these goals.Investor Relations WeChat

Roadshow

Performance official account and appletpresentations Field research activities Take actions that promote shared development

presentations strategies and common prosperity

The company’s General Meetings of

official website Adhere to green development principles and advocate for Shareholders the peak emissions and carbon neutrality goals Stepping up rural vitalisation

Boosting regional economic development

Strengthening green building capabilitiesBased on cdf’s unique characteristics we have been enriching and innovating investor relations (IR) activities and inviting investors to visit I mproving of income distribution and sharing and implementing “four savings and onethe fruits of company developmentthe company in person. The company held many sharing sessions and reverse roadshows in Hainan Hong Kong SAR and other regions; conservation”

performance briefings are held in a timely manner after regular reporting; and sessions are also held to provide updates on business Improving green logistics capabilities to reduce

operations. The company has participated in the collective roadshows of listed central state-owned enterprises organised by the SSE; and shipping costs

it engaged in overseas roadshows for the first time. We continue to promote the company’s digitalised IR platform; our official WeChat E nhancing green warehousing capabilities to

account has garnered more than 290000 views; and our IR applet has been followed by more than 1100 institutional users. make warehousing more intelligent

Building green duty-free complexes

Promoting green consumption and facilitating Actively participate in public service

the green transformation of consumption

Case study: Organising research and exchange sessions for investors to experience Improvement of public service system

business scenarios in person Development of public service projects

In 2023 the company organised for investors to visit its main stores for research and exchange sessions. These activities were designed The company has been included in various domestic and international sustainability indexes demonstrating capital markets’ recognition of

to give domestic and foreign investors the opportunity to personally experience the company’s core business scenarios and to give the the company’s ESG efforts.company the opportunity to proactively listen to investors’ valuable suggestions related to its development.The company has organised visits to “Skyrim Forest” an immersive visual experience the “Watches & Wonders” luxury watch exhibition

the Moutai tasting shop the flying dome theatre wine tastings and many other IR research activities in Haikou International Duty-Free Hang Seng Corporate Hang Seng (China A) Corporate Sustainability

Sustainability Index (HSSUS) Benchmark Index (HSCASUSB)

Shopping Complex to demonstrate the company’s proactive open and positive image to the capital markets. MSCI Emerging

Hang Seng (China A) Corporate Hang Seng SCHK China Central Markets Index

Sustainability Index (HSCASUS) SOEs ESG 40 Index

Hang Seng (Mainland and HK) Corporate Hang Seng SCHK China Central State- CSI 800 ESG index

Sustainability Index (HSMHSUS) owned Enterprises ESG Enhanced Index Shanghai and Shenzhen

300 ESG Leading index

Hang Seng Corporate Sustainability Hang Seng SCHK China Central State-

Benchmark Index (HSSUSB) owned Enterprises ESG Index SSE 180 ESG

Leading index

Research and exchange activity An immersive on-site experience Exhibition visit Face-to-face sharing session

3233

▼ ▼ ▼ ▼China Tourism Group Duty Free Corporation Limited * 2023 Environmental Social and Governance Report Principles of Governance

The company establishes the ESG Leadership Group which is responsible for managing and coordinating the ESG-related work. The

CTG DUTY-FREE’s 2023 ESG performance and 2024 ESG targets ESG Leadership Group establishes and improves the company’s management system and operating mechanism for ESG-related work. It

also formulates the ESG work plans and integrates the development strategy image brand and operations with ESG concepts. The ESG

Sector Achievement of 2023 ESG targets 2024 ESG targets Leadership Group is headed by the Chairman of the company; the deputy head of it is the General Manager; and its members include heads

of departments.* Continued to advocate energy conservation and emissions reduction fully * Continue to advocate energy conservation and emissions

implemented energy conservation and environmental protection initiatives and reduction and improve green operations management

thoroughly put the “Green and Low Carbon Initiative” into practice capabilities and energy efficiency The company incorporates ESG work into strategic decision-making and daily management to reinforce ESG awareness and continuously

* In 2023 no major incidents involving energy conservation or environmental * Avoid major incidents involving energy conservation or improves the standardisation and systematism of work. The departments and affiliated companies allocate the ESG-related tasks to the

protection violations occurred and the company received no penalties or environmental protection violations and avoid penalties or frontline employees; and they are responsible for supervising and implementing ESG-related work. For details regarding our work focuses

notifications from environmental protection authorities notifications from environmental protection authorities please see the “Statement of the Board of Directors” of this Report.* Haikou International Duty-Free Shopping Complex obtained LEED gold * Follow green building standards in new construction

certification projects and apply for green building certifications ▍Stakeholder Communication

* Zone C of Sanya International Duty-Free Shopping Complex obtained LEED * Continue to promote energy-efficient transformation of

gold certification existing facilities Stakeholder Communication Mechanisms

* Sanya Duty-Free Shopping Complex Phase 1 Plot 2 Commercial Project * Actively explore the use of new energy sources

obtained pre-certification as a 2-star Green Building * Facilitate brand partners to obtain LEED certification The company attaches great importance to communication with stakeholders and actively builds a robust internal and external

* Continuously optimised existing facilities’ energy efficient transformation and communication platform. We pay attention to material issues of concern to our stakeholders and continuously reinforces our management to

conducted carbon footprint management capabilities better respond to their expectations and create value for them.* Worked with brand partners to apply for LEED certifications: 10 stores/

counters obtained LEED certifications

Stakeholders Stakeholder expectations Communication and participation mechanism Corporate response

* 129 responsibility pledges were signed regarding operational safety targets * Achieve 100% signatures for the responsibility pledge Improvement of market

reflecting 100% coverage and full coverage of operational safety responsibility regarding operational safety targets and 100% coverage capitalisation and profitability Periodic reports and announcements Provision of truthful and adequate information

(for leads in charge) was achieved of operational safety responsibility (for leads in charge) Protecting shareholders’ rights and Communication via SSE e-interactive platform

* Conducted routine inspection and expert diagnostic safety inspection * 100% coverage of operational safety inspections (for all interests Official website new media platforms telephone

disclosure

Improvement performance and generate

activities and full coverage of operational safety inspections (for all places) was places) Standardisation corporate fax and emails General Meeting of Shareholders governance performance presentations roadshows analyst profits

achieved * 100% coverage of operational safety training (for all staff) Accurate information disclosure meetings investor reception day investor Diversified investor communication channelsInvestors

* Held 663 operational safety trainings 154 themed lectures drawing 18500 * No safety accidents and no work-related fatalities Smooth investor communication seminars Improvement of ESG practices

participants and full coverage of operational safety training (for all staff) throughout the year Improvement of ESG performance

* No safety accidents and no work-related fatalities throughout the year * Continue to enhance automation and smart operations to

Product quality guarantee Meeting product quality

* Enhanced automation and smart operations diligently staged emergency drills empower operational safety Improvement of shopping Communication during service process Good service quality

* Spent a total of CNY27.93 million in operational safety * Guarantee investments in operational safety experience Diversified after-sales channels Improvement of the mechanism of after-

Protecting customers’ legitimate Customer satisfaction surveys sales service

Consumers rights and interests Innovative service practice

* Invested CNY7.543 million in employee training; total training hours exceeded * Guarantee investments in employee training

547000 hours; training coverage reached 100% of personnel; and on * Guarantee investments in launching training activities Enhancement of the remuneration and

average each employee participated in 32.8 training hours * Continue to diversify training courses and improve welfare system

training quality Guaranteed remuneration Improvement of the system for general

Good working environment Employment contracts meetings of employee representatives

* Conducted onboarding integrity training for 100% of new leaders * Conduct onboarding integrity training for 100% of new Improvement of communication Trade union general meetings of employee Provision of a strong career development

* Carried out six anti-corruption trainings for all employees and two anti- leaders mechanisms representatives ladder

corruption trainings for directors and supervisors including independent * Conduct onboarding integrity training for 100% of new Employees Employee development and career Seminars and condolence visits Diversified staff trainings

directors with a training coverage rate of 100% joiners paths Various staff activities

* Achieve a 100% coverage rate in annual anti-corruption Establishment of healthy and safe working

training environment

Honest fair and provision of mutual

* Spent CNY13.37 million in rural vitalisation implemented 10 assistance * Closely monitor and respond to community and societal benefits Daily business exchanges Legal perform of contracts and agreements

projects and attracted CNY2.60 million to targeted assistance projects needs Maintenance of long-term Business meetings and negotiations Arrangement for open and fair tendering

* The company fully leveraged its influence in the supply chain and cooperates cooperation Document correspondence Open and transparent business principles

with multiple partners – from brand partners to consumers – to jointly explore Complying with business ethics Procurement activities Collaborations on environmental projectsBusiness

Promotion of supply chain’s Industry forums Continuous diversification of cooperation innovative paths to green and sustainable development. partners

sustainable development models

ESG Governance Structure Community engagement and Research via site visit Actively participation in public services

development Public service activities Targeted assistance projects

The Board of Directors is the highest decision-making authority for the company’s ESG work. Public services support Targeted assistance Community development support

Communities Social development concerns Volunteer services Advocation of green development

The Strategy and Sustainability Committee of the Board of Directors assumes the primary responsibility including:

* conducts research and makes recommendations on matters relating to the Company’s sustainability and ESG matter including but Law-abiding compliant operations Participation in relevant trainings and conferences Abiding by laws and policy requirements

not limited to vision targets and policies; Undertaking social responsibility Daily communication and information reporting Tax payment in accordance with lawsCompliant information disclosure

* studies the Company’s ESG development strategy and the material issues that stakeholders are concerned about and put forward Government Promotion of economic Document notifications Promoting regional economic development

corresponding suggestions; and development Cooperation between government and enterprise Increase of local employment

* tracks and inspects the implementation and improvement of ESG matter to ensure that the management and decision-making regulators

mechanism of important sustainability issues including but not limited to environment anti-corruption occupational safety and health

Daily communication Performing duties as an association member

comply with the requirements of relevant laws and regulations; Document notifications Participating in conferences and activities

* reviews the Company’s reports on sustainability and ESG matters and reports to the Board of Directors. Promotion of industry development Participation in associations’ conferences and held by industry associations

Industry activities Sharing our experiences with a wide

associations audience

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Public services Anti-corruption Training Operational safety Green building Green office

advocacyChina Tourism Group Duty Free Corporation Limited * 2023 Environmental Social and Governance Report Principles of Governance

▍Materiality Assessment for ESG Issues Materiality matrix

Materiality assessment process CTG DUTY-FREE determines the materiality of

sustainability issues from two dimensions: the

Based on the findings of the Research on the Preparation of ESG Reports by Listed Companies Controlled by Central State-owned company and stakeholders. Based on an effective 10 2 1

Enterprises issued by the SASAC and with reference to the Global Reporting Initiative (GRI) procedures on materiality assessment the selection from the issues database and sufficient 314 9

company at least every year collects issues of concern to critical internal and external stakeholders include employees management stakeholder engagement the company has 6 5 4

1687

investors consumers brand names etc through questionnaires and interviews. Then we perform the materiality assessment and rank the depicted a materiality assessment matrix and finally 11

results to identify the company’s material environmental social and governance issues and disclose them in the Report. identified 13 highly important issues 3 important 15

issues and 2 related issues.The company’s process for assessing the materiality of ESG issues

17

Governance issues

18

01 Identify the issues and form an issues database Social issues

Environmental issues

* The company comprehensively sorts out its sustainability focuses and stakeholder feedback and defines the scope of Importance to the company

issues with reference to the issues disclosed by peer companies in China and overseas

* We identify the sustainability focuses of the industry based on the findings of the Research on the Preparation of ESG Ranking Importance Issues Response in the Report

Reports by Listed Companies Controlled by Central State-owned Enterprises issued by the SASAC; capital market ESG

1 Highly important Excellent service experience Delivering Excellent Services for People’s Well-being

ratings such as MSCI S&P DJSI CDP Sustainalytics and other relevant assessment criteria; the GRI standards; UN

SDGs; the Sustainability Accounting Standards Board (SASB) and other international sustainability-related standards and 2 Highly important Customer satisfaction Delivering Excellent Services for People’s Well-being

targets

3 Highly important Health and safety of products Creating a Comfortable Environment for Consumption to Ensure Trusted Business Operations

4 Highly important Employee welfare and 02 satisfaction Protecting Employee Rights and Promoting Their InterestsCommunication and survey with stakeholders

5 Highly important Health and safety of employees Operational Safety and Physical and Mental Health

* Interview stakeholders to collect feedback and suggestions on sustainable development practices and their views on

future sustainability strategy 6 Highly important Employee career development and skill upgrading Diversified Training to Promote Staff Development

* Prepare the online questionnaire to assess material ESG issues and invite stakeholders to rate the materiality of relevant

7 Highly important Employee diversity and equal ESG issues employment Protecting Employee Rights and Promoting Their Interests

8 Highly important Integrity of operations Robust Governance System for Long-term Stable Operations

03 Materiality assessment 9 Highly important Supply chain management Optimising Supply Chain Management Driven by the Environment and Intelligence

10 Highly important Information security and privacy Complying with Commercial Ethics to Reinforce Internal Control * Based on the results of the stakeholder survey and the enterprises’ development the company considers the impact of protection Compliance

the issues on its strategy policies processes and commitments. The company also considers how the issues affect its

competitive advantage and management capabilities as well as the issues’ current and future financial implications. CTG Topic 1: Proactively Responding to National Strategies by Fulfilling our

11 Highly important Response to national strategies Mission as a Central State-owned Enterprise

DUTY-FREE determines materiality from two dimensions: the company and stakeholders. Finally the company devises a Engaging in Charity Initiatives to Act as a Responsible Corporate

materiality assessment matrix after ranking issues by their materiality ratings

Collaborating with brand

12 Highly important partners to promote Topic 2: Capitalising on Our Competitive Edge to Jointly Uphold ESG

environmental protection Concepts with Brands

04 Materiality verification 13 Highly important Response to climate change Addressing Climate Change to Protect the Environment

Advertising and responsible Creating a Comfortable Environment for Consumption to Ensure Trusted

* In combination with the company’s strategy and business policy the company’s management reviews the preliminary 14 Important marketing Business Operations

evaluation results of material issues. It comprehensively analyses the material issues and priorities that are important to the

company and stakeholders. Environmental management 15 Important systems and resource Green and Low-Carbon Operations for a Better Life

management

16 Important Intellectual property protection Complying with Commercial Ethics to Reinforce Internal Control 05 Materiality review Compliance

Packaging material

* After the end of the reporting period the company will organise stakeholders to give feedback on the contents of the 17 Related management Green and Low-Carbon Operations for a Better Life

Report and prepare for the following Report.

18 Related Waste management Green and Low-Carbon Operations for a Better Life

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Importance to stakeholdersChina Tourism Group Duty Free Corporation Limited * 2023 Environmental Social and Governance Report Principles of Governance

Complying with Commercial Ethics to Reinforce Internal Control Compliance

In 2023 the company carried out available for all employees and including independent directors

six anti-corruption trainings two anticorruption trainings for with a training coverage rate of

▍Business Ethics

directors and supervisors 100%

The company strictly abides by the Law of the People’s Republic of China Against Unfair Competition and other laws and regulations. We

participate in fair market competition according to business ethics and market rules and forbid commercial bribery and we continuouslyoptimise the company’s anti-bribery mechanism to ensure its effectiveness. We are earnest in conducting self-examinations and self- Case study: The company’s special “Familyrectifications and we do not violate any laws regulations business ethics or market rules in business activities or engage in any unfairtrading practices that undermine fair competition. The company continues to attract consumers by engaging in trusted business operations Traditions” training

and providing excellent services and we continue to promote anti-corruption anti-monopoly and human rights protection initiatives in

In March 2023 the company headquarters invited external

relation to our suppliers. During the reporting period there were no corruption lawsuits filed against the company or its employees.lecturers in Chinese culture to hold a special seminar for ourstaff members named “President Xi Jinping’s Family TraditionsWorking with Customs to combat the practice of the “reselling duty-free goods” CTG Duty Free makes efforts to raise the legal andand Classic Family Mottos” with the theme “Cultivating Goodcompliance awareness of consumers by informing them of the consequences of such practices and strengthening self-supervision.Family Traditions – Staff in Action”. The seminar focusedon the four aspects of “knowing learning practising andAnti-corruption advocating good family traditions”.The company has formulated a supervisory and management system covering its headquarter and

affiliated companies and established a leading group and a coordinating group for upholding anti- Screenshot of online activities

corruption. The anti-corruption leading group convened three meetings during the year to study and More than 300 people

analyse the development of anti-corruption Party building anti-corruption trends and the ecosystem participated in the seminar

of corporate politics and then draws up work plans. The coordinating group comprises Disciplinary

System and Inspection Audit Inspection the Party Office the General Office Human Resources Finance and

Mechanisms

Legal among other departments held a meeting during the year. They coordinate the supervision of all Anti-money Laundering (AML)

parties to enhance supervisory effectiveness in accordance with the working rules.We strictly comply with the Anti-money Laundering Law and other laws and regulations in the local regions of our operation. We have

The company accepts letters visits and telephone reports and announces telephone numbers e-mail developed our AML policies and procedures accordingly such as “Know Your Customer” procedures transaction monitoring suspicious

addresses and physical mailboxes for reporting. Our staff must strictly comply with the confidentiality transaction reporting and record-keeping. Our company is constantly looking for ways to further improve our anti-money laundering

and avoidance mechanism precisely control the information scope and the clues of problems and measures. We provide AML training to our employees to ensure that they are kept abreast of laws regulations and updates to our AML

strictly prohibit any disclosures regarding the case information and disposal solution. As a protection policies and procedures.measure for whistle-blowers the company’s Disciplinary Inspection Committee enforces the “Rules onReporting the Handling of Whistle-blowers’ Reports by Disciplinary Inspection and Supervision Organs” and other

Mechanisms

regulations strictly prohibits the revealing of whistle-blowers’ information and giving priority to handling Intellectual Property Right (IPR) Protection

the accusations with a real name; for anonymous reports and reporting materials unauthorised checks

of the whistle-blowers’ information are strictly forbidden.We attach great importance to works related to IPR and has formulated the “Brand Management As of 31 DecemberThe company regularly implements special supervisory inspection including monitoring and reviews Measures” and “Trademark Use Management System” which regulates the management and use of 2023 the company

before festival and holidays. These approaches cover persons who are in leadership positions examine IPRs including the standardised management of the Brand Visual Identity (VI) system and the use of had obtained two

trademarks. software copyrights –

their performance of duties and scrutinise their business expenditures. Special supervisory inspections the IOS and Android

Dedicated are also conducted for compliance operations.Supervision We established a comprehensive retail terminal VI system which conveys the corporate philosophy versions of the Sunrise

culture and norms to the public and eventually shapes a unique corporate image. Mall application.The company continues cultivating an integrity-based culture to create a stable and law-abidingoperating environment. Throughout 2023 the company implemented the “Detailed Work Arrangements For trademarks with more comprehensive applications the company has a team of professional lawyersof the Company’s CPC Committee in Implementing the Opinions on Strengthening the Development to monitor trademark infringement both at the time of registration and use; we will defend our rightsof an Integrity Culture in the New Era” to reinforce the construction of a culture of integrity. The vigorously in the event of a violation.company also issued the “Detailed Measures of the CPC Committee of China Tourism Group DutyFree Corporation Limited on Further Implementation of the Central Party Leadership’s Eight-pointDecision” to reinforce the disciplinary structure. Moreover the company held various anti-corruption and

Advocacy against ▍Risk Management

corruption compliance training sessions engaged in anti-corruption dialogue with new hires during the on-boarding

process staged educational seminars for all CTG DUTY-FREE employees to warn against the dangers Risk management

of corruption carried out educational activities through the “cdf e-Party” application and strengthened

education for company cadres to remind them to distance themselves from corruption and stay

committed to acting with integrity and complying with the law. The company formulated the “Measures on Comprehensive Risk Management” and the “Management Regulations on the Reporting ofSignificant Operational Risk Events” to establish an effective and comprehensive risk management system; improve risk prevention andThe company has formulated the “Conclusive Evaluation Method for Personnel Selection and management; clarify the collection collation and reporting of significant operational risk events; and safeguard the company’s stableAppointment and Operational Integrity” in order to thoroughly meet the rigorous requirements for operations and sustainable development.the Party’s governance strengthen the selection and appointment of cadres by the company’s CPC

Select and appoint

cadres with integrity Committee select honest people with integrity and prevent corrupt officials from being promoted.The company performs an annual assessment of material risks based on two dimensions: the possibility of risk and the magnitude of

impacts. CTG DUTY-FREE trained the compliance risk topics to all staff quarterly to enhance their awareness.

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▼China Tourism Group Duty Free Corporation Limited * 2023 Environmental Social and Governance Report Principles of Governance

In terms of risk governance the company has specified the top-level personnel responsible for operational risk management the top-level We have taken the following actions to create an effective risk management culture within the company:

personnel responsible for monitoring and auditing risk management performance and their relevant reporting lines.According to the requirements of the company’s “14th Five-Year” strategic plan to comprehensively improve risk management and controlwe comprehensively organise and implement tasks related to the risk management and control system and tasks related to the “year forstrengthening compliance management”. The company plans to establish a long-term management mechanism to enhance its overall

management and risk prevention capabilities.Audit and Risk

Board of Management Leads in charge of Departments in charge

Directors Committee under the General manager risk management of comprehensive risk

Board of Directors management To this end we have initiated the systematic construction of an The company also embeds its own requirements on risk

internal control system conducted risk analysis and diagnosis management and control into specific control points and maps

of business processes throughout the system urged relevant specific responsibilities to information in the risk database. In

units to implement rectifications according to the risk diagnosis this way we ensure that the company’s internal control lists and

The Board of Directors is the The company’s general manager is The departments in charge of comprehensive report and put forward optimisation suggestions for key issues programmes and internal control system are vertically linked

leadership group responsible responsible for guiding the company’s risk management are the Legal and Risk Control such as the company’s digital transformation to support and horizontally consistent. Using the system we can generate

for the company’s overall risk overall risk management approving Department. They are responsible for constructing management decision-making and enhance the company’s useful management tools such as a practical internal control

overall operations and management. manual that reflects the company’s business reality as well as

management and for ensuring the r isk management matters subject and operating the comprehensive risk management

risk control blacklists and whitelists.effectiveness of comprehensive to its authorisation and authorising system; organising coordinating supervising and

risk management. the company’s leads in charge to inspecting risk management; and evaluating the

be responsible for organising and effectiveness of subsidiaries’ risk management. They At the end of the reporting period the company had not identified any long-term emerging risks that could have a significant impact on

promoting risk management. provide professional advice for the company’s major future business. The company will continue to conduct risk assessments and analyse the potential impacts of emerging risks and formulate

risk decisions. solutions if any long-term emerging risks are identified.Risk internal control and compliance responsibilities have The company’s leads in charge of risk management preside over the daily

Internal control management

been incorporated into the duties of the Audit and Risk work of comprehensive risk management. They are accountable to the

Management Committee under the Board of Directors to general manager and they exercise their risk management duties subject

refine the risk management corporate governance structure. to the general manager’s authorisation.* In accordance with the Basic Standards for Enterprise Internal Control the Application Guidelines * The company implements the

for Enterprise Internal Control the Guidelines for Corporate Internal Control Assessment and other internal control evaluations

The company organises a company-wide risk assessment every year to study and determine the risk situation in the coming year. regulations the company has formulated the “Management Measures on Internal Control” to establish and prepares the “Internala robust and comprehensive internal control system. The company has established a management Control Evaluation Report”

and organisational system for internal control comprising the Board of Directors Board of Supervisors annually which is disclosed

In this regard the first objective is to establish the risk classification of each business fully apply the results of risk loss event analysis Operating Department Internal Control Construction Department Internal Control Operations o n t h e S S E w e b s i t e

internal control supervision and inspection quantify the relevant criteria for risk analysis and form a panoramic risk list for each business Department and Internal Control Supervision Department. For internal control management the concurrently as the Annual

through bottom-up aggregation of risks. company adopts a system of “centralised leadership and hierarchical responsibilities” which combines Report.the comprehensive management of internal control supervision and management departments with the

The second objective is to further deepen and expand the study of risk early warning indicators the key business areas are selected and professional management of functional departments.the selection of industry indicators and the design of early warning thresholds are studied from both quantitative and qualitative aspects to

form a holistic risk early warning indicator applicable to the company. In 2023 starting from the existing system of early warning indicators

for risk the company has been optimising and refining how indicators and early warning thresholds are set. New indicators related to human * The company carry out various internal evaluations for * According to the relevant regulatory provisions the company formulatedresources risks and information risks have been added and the risk management system has been launched in a way that achieves daily affiliated companies to ensure the full coverage of corporate the “Management Regulations on Rectification of Issues Identifiedtop-down internal management. Annual internal self-full coverage visual management of operational risks across all the company’s important sectors. in Internal Audits” in 2023. These regulations aim to standardise

assessment covers all affiliated companies the evaluated relevant rectification processes strengthen the implementation of audit

areas including social responsibility safety and health rectification and improve the effectiveness of audit oversights. They also

The third objective is to evaluate the probability and impact of each risk according to specific risks in the risk database. The evaluation team environmental protection etc. Core entities perform semi- seek to clarify rectification responsibilities rectification procedures result

comprises the company’s management various departments and key subsidiaries. Ultimately the team determines the risk priorities for annual internal self-assessment regarding focused areas. identification supervision and inspection responsibility constraints and

the coming year based on the comprehensive assessment and response plans are devised for the top 10 risks. The company monitors and On-site internal supervisory assessment is implemented result implementation while improving the internal audit system.irregularly. External auditors carry out the auditing task of

tracks its risk response on a quarterly basis to improve its risk response capabilities. annual internal control.Case study: Training on “Prevention of Risks under International Trade Laws” to enhance According to the 2023 plan the company has rolled out the internal control oversight and evaluation of its affiliated companies. The

the risk prevention capabilities of staff evaluation aims to comprehensively assess and review the formation of stores’ risk and internal control systems and identify and rectify any potential risks and deficiencies. Following this suggestions for rectification were proposed to promote the optimisation and standardisation

of the stores’ internal control processes implementing the use and optimisation of the internal control manual and other management tools

To implement the requirements of the SASAC for the comprehensive promotion of the rule of law among central state-owned so that employees pay closer attention to risk prevention and control in an environment in which all employees actively participate and

enterprises in June 2023 the company held a training session on “Prevention of Risks under International Trade Laws” with more promote internal control.than 500 staff members from relevant businesses from the headquarters and affiliated companies participating. The training focused

on the key business processes involved in international trade activities including export controls financial settlements and international In 2023 internal audits conducted by the company included an audit of the economic responsibilities for employee termination at

payment precautions dispute resolution etc. By studying typical cases of international trade dispute resolution participants could fully subsidiaries and an audit of subsidiary operations and management. In addition to ethical codes the audit also covered corporate

understand the legal risks involved and the prevention methods used in international trade activities effectively improved the enterprise’s governance strategic decision-making human resources management financial management procurement management project

legal risk prevention ability in regards of international trade. management investment management information systems and other business sectors.

40 41China Tourism Group Duty Free Corporation Limited * 2023 Environmental Social and Governance Report Principles of Governance

Compliance management A customer can register cdf memberships at the system of member terminal (cdf membership applet cdf membership App cdf Membership

Club and other channels) in a self-service manner. Once the information is entered the key parts of the personal data are desensitised; and

To improve the company’s compliance regarding operations and management and to meet corporate needs in preventing compliance risks in the customer has the right to access adjust and delete his/her personal information at any time. The company obtains personal information

2023 the Company formulated the “Compliance Management Measures” to strengthen compliance management improve corporate compliance from the self-input of customers and does not collect personal data from third parties (except when required by law). The company

management and build an effective compliance management system. In 2023 the company continued to improve its internal control and undertakes to delete customer data within the time limit required by law and does not provide personal data to any third parties (except

compliance management system by incorporating risk internal control and compliance responsibilities into the duties of the Audit Committee and when required by law).Risk Management Committee under the Board of Directors. In addition the organisational systems for risk internal control and compliance are

being steadily improved to strengthen responsibilities for the management of these areas at the corporate governance level. In 2023 the company

also revised the “Management Measures for the Assessment and Evaluation of the Company’s Performance” in which risk internal control and To raise our employees’ awareness regarding customer privacy issues the company conducts

compliance management are deemed indicators within the enterprises’ performance evaluation to encourage better execution of internal control specific training sessions for all employees at least twice a year.compliance and risk management.The company has given itself the specific task of constructing a compliance system. The task selects eight sectors as its focus these being the

supervision of listed companies the supervision of state-owned assets (investment and M&A) customs supervision tenders and bidding constructionprojects labour tax management and data security. Case study: The company’s specific training on “Corporate Response to PersonalInformation Protection and Data Security Compliance Risks”

In 2023 to enhance the digital supervision of its stores the company has been supervising system and mechanism improvements in key areas and

across key links. In 2023 operational compliance inspections were conducted in 138 stores and disciplinary inspection cadres were dispatched to To effectively enhance employee awareness of personal information protection and data security compliance and to improve their ability

supervise projects in areas where corruption is prone to occur. Disciplinary committees from the company and at stores work together to conduct to address risks the company invited a partner from law firm to give a lecture on compliance-related topics that included relevant legal

joint inspections. and policy requirements common corporate risk points and typical cases reminders of risk points in corporate products (applications

applets) and corporate compliance systems and mechanisms.Corporate Information Security

Case study: Using the compliance management pilot programme to build and improve the

The company cooperates with leading domestic security server providers and adopts a variety of security protection means to guarantee the

company’s compliance management system security of key information systems. The data centre is designed with active-active architecture and a stable and reliable data backup plan to

provide double protection to ensure the information security of our company.In 2023 the company selected Hong Kong SAR as a pilot programme for offshore compliance management. The pilot focuses on enhancing

the compliance operations mechanism for key sectors. The company’s compliance management system is established and improved through

The company inspects its information system regularly for all types of operating and maintenance events and performs checks to safeguard

the research and diagnosis of the current compliance status the compliance risk identification system and the responses to special compliance

the system’s health. Daily automatic or manual inspections are carried out for key information system to ensure that the information system

risks. Supporting management tools will then be introduced to effectively prevent and address compliance risks.operates in a routine and stable manner 24 hours per day. The company guarantees sound operations and maintenance for vital activities

and events and has formed a working mechanism to efficiently resolve problems and rapidly rectify them afterwards.▍Cybersecurity and Personal Information Protection To improve the safety of employee work habits raise awareness of safety precautions protect the company’s data assets and ensure that

security threats are reported in a timely manner the company conducted an online “Safety Awareness Training” for all employees.The company respects and protects customer privacy and assists safeguard network and information security in strict compliance with laws and

regulations such as the Cybersecurity Law the Personal Information Protection Law and the Information Security Technology – Personal Information

Security Specification. The company develops its information security systems under these laws regulations and principles.Case study: Issuing study materials to all employees to strengthen the company’s

Information security system construction operational safety and emergency management

The company and affiliated companies have established and improved various information management systems and standards to suit the company’s In 2023 the company issued documents entitled “Information System Guarantee of Key Subsidiaries during Critical Times” to all

digitalisation needs. CTG DUTY-FREE formulated information security management systems that cover information security management network employees for their study. This aims to consolidate the company’s operational safety and emergency management reinforce the

security management data management information encryption rules information security emergency plans and other aspects of information security foundations of information construction effectively prevent various information system failures ensure the continuity and security of the

management. In this way we have developed comprehensive information security management systems that feature well-defined responsibilities company’s key information systems during critical times and ensure that the system is safe and free from any incident to the furthest

a clear division of labour and a combination of technology and management. The company’s Board of Directors is the highest responsibility and extent possible.decision-making authority with regards to information security and privacy protection. The Information Technology (IT) Department is responsible for

specific work in information security and privacy protection. To keep the team updated with the latest IT knowledge IT staff members are required to

receive regular training.Case study: Focusing on security tasks during the “Two Sessions” in 2023

Client privacy protection

To ensure cybersecurity during the annual plenary sessions of the National People’s Congress (NPC) and the Chinese People’s Political

In June 2023 the company updated its customer privacy policy which is available to consumers and other stakeholders on its website Consultative Conference (CPPCC) (the “Two Sessions”) the management of the company set up a cybersecurity working group and

(http://www.ctgdutyfree.com.cn/p/yinsizhengce.html). In accordance with the Personal Information Protection Law and our customer privacy developed a detailed work plan and emergency system for cybersecurity. The company carried out drills for key information systems

protection policy we take the following measures to protect customers’ information: of the company’s headquarters and key subordinate companies and quickly arranged personnel to rectify security issues identified in

the drills. We also formed a tracking mechanism to quantify the progress of rectification and successfully completed the security tasks

during the “Two Sessions”.Membership system has

Desensitise key Store the data in Tencent Membership information Establish complete

certified as Level III Information

information Cloud cannot be exported system log

Security Protection In 2023 the company provided five training courses related to information security and privacy protection.

42 43A tunnel of time

02 ProsperityDelivering Excellent Services for People’s 4602 Well-beingCreating a Comfortable Environment for 54Consumption to Ensure Trusted Business OperationsOptimising Supply Chain Management 55CTG DUTY-FREE actively responds to United Nations (UN) Sustainable Development Goals (SDGs) 4 10 11 12 and 15 and focus on Driven by the Environment and Intelligencemeeting our social responsibility pursuing excellence and providing consumers with quality products and services. Engaging in Charity Initiatives to Act as a 58

Responsible Corporate

Setting the Industry Benchmark for High- 61

quality DevelopmentChina Tourism Group Duty Free Corporation Limited * 2023 Environmental Social and Governance Report Prosperity

Delivering Excellent Services for People’s Well-being

Case study: Improving Sunrise Shanghai’s customer service for the China International Import Expo (CIIE)

To comprehensively improve the development of tourist destinations and the duty-free industry the company is expanding its offerings of During the CIIE Shanghai Airporthigh-quality goods and services with a focus on new consumption demands while steadily upholding the concept of “trusted business showcased China and Shanghai asoperations and excellent services”. We aim to serve as a benchmark in the development of the modern cultural industry and the promotion a welcoming destination for visitors

of high-quality development in the tourism industry while at the same time encouraging the vigorous development of China’s duty-free from all over the world. In its role as

market. the “Shanghai brand” of the airport

duty- f ree reta i l industry Sunr ise▍Service Management System and Training System Shanghai has implemented the “Yearof Management Service Improvement” Service skill training

The company has continued to improve its service standards while implementing various related systems in an organised structured and strategy staged specif ic tra in ing

effective manner. The company has developed the “Code of Conduct for Sales Staff” to clarify requirements on customer services the dress sessions and practical evaluations to improve employees’ service skills and improved its

customer services according to the requirements of the CIIE.code and customer-welcome etiquette. Our company also formulated the “Operating Standards for 400 Customer Service Posts” and the

“Operating Standards for After-sales Services” to specify after-sales service standards. Practical evaluation of service skills

We also constantly improve our talent management and staff training system. The company continuously carries out various training

including leadership training professional skills training for front-line staff and general knowledge training to ensure that employees at all Case study: Hainan DF stages the “service with a smile” campaign

levels possess professional service capabilities. The ultimate goal of the training is to accurately grasp customers’ core demands.In 2023 Hainan DF produced a video course for etiquette training with the theme of

On 11 April 2022 President Xi Jinping visited Sanya International Duty-Free Shopping “service with a smile”. Through the training “service with a smile” was standardised

Complex. While there he stressed the advantages of leveraging China’s huge market size across stores. A total of 163 training sessions were held with in a total of more than

the need to foster a favourable market environment with the necessity of trusted business 5130 attendances. Alongside the training and business practice ‘service with a

operations and excellent services in attracting customers all with the aim of making a smile’ stars were selected from stores with case studies being shared via the WeChat Trusted Providing

greater contribution to the development of “a free trade port with Chinese characteristics”. accounts of the stores of Hainan DF for publicity and guidance purposes and for the Business Excellent continuous improvement in service capability and service level. Etiquette training course materials on “service with a smile”

In response the company has been providing employees with training on integrity culture +Operations Services

and related business skills. Meanwhile the company’s “Service Quality Work Plan” aims to

improve standards for business and service quality promote quality goods and boutique

strategies and uphold the concept of “trusted business operations and excellent services” Case study: Dalian cdf invites Customs personnel to train staff

with a view to comprehensively improving customer service standards and ensuring the

provision of quality goods and services to consumers. On 27 September 2023 prior to its

opening Dalian cdf invited personnel

from the relevant Customs division for

an on-site staff training. The training

Case study: “Customer Service Improvement Training Camp” for internal instructors featured the flow of duty-free goods

sales management regulations andIn November 2023 the company held the “Customer Service Improvement other related issues.Training Camp” to empower internal instructors. The camp lasted four days and

a total of 43 front-line business staff from affiliated companies participated. The

training focused on two major themes: Customer Service Skills Improvement The company’s service guarantee for major festivals

and Course Internalisation and Teaching Skills Improvement. As part of the

programme the participants were divided into groups to develop internal training

courses for customer service personnel transforming what they had learnt into

practice.A teacher instructs students at the camp

The company provides accessible facilities to cater for special needs groups.Roleplaying and interactive activities Graduation ceremony Training camp group photo

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▼China Tourism Group Duty Free Corporation Limited * 2023 Environmental Social and Governance Report Prosperity

▍Enhancing Service Quality

Case study: New shopping experience as part of the Sanya Downtown Store “S Store”

The consumer shopping experience and consumer shopping satisfaction are the top priorities for tourism retail development. The company

takes multiple measures to steadily improve its service quality and to create a comfortable shopping environment. programme in 2023

Digitalisation and omni-channel are the developmental priorities of the tourism retail industry. The company continues to integrate its online The “S Store” programme is a project initiated by Sanya Downtown Store that creates a new shopping

and offline channels providing consumers with “pre-sales sales and after-sales” tourism retail services that are both more convenient and experience through the multi-dimensional improvement of service quality and store management. At

of higher quality fully meeting consumer shopping needs and ensuring consumers undergo a comfortable shopping experience throughout the beginning of 2023 Sanya Downtown Store introduced 8 benchmark stores or “S Stores” (Saint

the entire process. Laurent Moncler Burberry Coach Bulgari Blancpain Cartier and Van Cleef & Arpels). To improve

the operational management capability and service quality of the S Stores Sanya Downtown Store

has optimised the existing linear “store manager with store-keepers” structure by using direct-sale

stores of leading luxury brands as a benchmark. Differentiated posts were designated that include a

For pre-sales During sales For after-sales store manager a customer management manager a sales specialist a concierge and an additional

team for service quality supervision under the Operations Management Department. A team has been

set up to supervise internal service quality and improve professional services. In addition under the

the company has a training system in the company offers a convenient the company has used digitalisation to leadership of the general Party branch of the Sales Department Party members and cadres in relevant

place to improve the quality of talent shopping experience by upgrades standardise its after-sales services divisions of the Sales Department worked with the main S Stores to revise and improve the operations

and provide professional service to the membership system called manuals of the eight S Stores aligning the brands’ operations standards based on the actual situation

support OneID and through optimising the of Sanya Downtown Store while ensuring the manuals are practical and workable.store environment

Moreover the company uses the quality services provided on its major e-commerce platforms to demonstrate its responsibility warmth and ▍Improving Service Coverage

commitment to customers. The company’s cdf Membership Club fully guarantees the quality of goods by the three dimensions of qualitycontrol of incoming goods logistics services and after-sales services to strengthen the quality of goods and services. It also focuses on the To protect consumers’ legitimate rights and interests and improve their shopping experience the company has issued the “Public Commitment to Improvingfive optimisations of expanded service channels standardised services timely services automated services and outcome-oriented services After-sales Services and the Shopping Experience”. This makes a clear and solemn commitment to enacting trusted business operations and being in strict

compliance with the Consumer Rights Protection Law the E-Commerce Law the Interim Measures for the Return without Reasons of Commodities Purchased

to effectively improve service quality maximise consumer satisfaction and service efficiency and increase consumer confidence and comfort

Online within Seven Days the Measures for the Supervision and Management of Online Transactions and other laws and regulations. The company has

in their consumptions. formulated various rules and protocols for the platform in accordance with laws and regulations has made after-sales service terms available in a clear and

convenient way and effectively protects consumers’ legitimate rights and interests.To further improve the consumer shopping experience cdf has established a two-way interaction mechanism for consumers in Hainan

alongside an increase in the number of online customer service portals and related capacity for cdf members to purchase in Hainan and on The company has been improving the disclosure of merchandise information to achieve the orderly

the offshore duty-free shopping platform. Online customer service portals have been embedded in the product order and service sites to classification of goods the full disclosure of product information and fair and transparent prices. Duty- Orderly

give customers multi-channel availability and further meet their service needs before during and after sales. free goods and non-duty-free goods are showcased separately on different web portals to avoid Classification

misleading consumers. of Goods

Improving the

In strict adherence with the provisions of the Interim Measures for the Return without Reasons of Disclosure of

Case study: Providing quality services during the Boao Forum for Asia Commodities Purchased Online within Seven Days the company provides clear procedures and Full Merchandise

guidance on the return of goods without the need to specify a reason and clearly identifies and Disclosure Information Fair and

of Product Transparent

At the Boao Forum for Asia in 2023 the company’s Qionghai Boao Duty-Free Shop arranged in advance for specific training for confirms with consumers those goods that are not applicable under the policy in accordance with the

law. The company does not arbitrarily expand the scope of which goods are not applicable under the Information Prices

guaranteed services at the forum. This created a thoughtful comfortable and convenient shopping experience for consumers and

return of goods without specifying a reason.helped build an image of high-quality service through increasing the number of temporary support staff alongside other conveniences

such as convenient make-up counters.Case study: Revising the platform shopping guidance to further protect consumers’ rights and interests

Case study: Wuhan cdf invites personnel from brand partners to train staff On 4 January 2023 in accordance with the instructions

of the administrat ive guidance meeting for duty-free

In early November 2023 Wuhan cdf staged a training with the theme “Empowerment Improvement for Service Improvement” in which industries organised by the State Administration for Market

personnel from several brand partners were invited to provide staff training to enhance their professional knowledge of merchandise. Supervision (SAMR) the company headquarters arranged

for its subsidiaries to jointly make a public commitment to

society. The platform shopping guidance was revised to

delete additional restrictions on the return and replacement

of goods. Only four categories of goods have been specified

as not applicable under the policy of return of goods within

seven days without the need to specify a reason: near-expired

goods damaged goods goods without plastic packaging

and goods with a short shelf-life. The applicability of the policy

to particular goods is clearly specified on the product web

portal. Consumers are asked to confirm their understanding of

the “Shopping Guidance” and tick an additional check box for

their acceptance of goods that cannot be returned or replaced

within seven days without specifying a reason.

48 49China Tourism Group Duty Free Corporation Limited * 2023 Environmental Social and Governance Report Prosperity

Establishing and improving after-sales service channels and listening to and responding to consumer demands Conducting customer satisfaction surveys and optimising service processes

The company has updated the “Standards for After-sales Services V3.0” to better align the system with actual business needs. The updated Every year our company conducts consumer satisfaction surveys. Before we implement phone interviews we seek customers’ permission

standards optimise the mechanism for after-sales solutions aid the judgment of customer service staff expand the after-sales service regarding their willingness to accept the survey through SMS.team strengthen after-sales service training shorten the response time of after-sales services and lay the groundwork for continuous

improvements to the consumer experience of after-sales services:

Case study: Hainan DF conducts consumer satisfaction surveys to provide better services

1 The company works with market supervision authorities in the 2 The company accurately analyses customer complaints

management and supervision of external customer complaints. implements categorised policy management strengthens To improve our service quality feedback and tracking system in 2023 CDFG Haikou Riyue Plaza Duty-Free Shop Haikou Meilan Airport

The company strictly implements the policy of immediately the efficiency of the consultation and handling of customer Duty-Free Shop and Qionghai Boao Duty-Free Shop under Hainan DF conducted four satisfaction surveys of walk-in customers. A total

handling “12315” complaints and has established effective complaints and strictly implements a mechanism for of 7727 questionnaires were completed with the overall satisfaction of the three Hainan DF stores exceeding 98%. Targeted collection

communication channels with the Beijing Municipal Administration a 30-minute response time. The company works with of customer satisfaction data on the customer shopping experience the shopping environment and facilities personnel and services

for Market Regulation in Dongcheng District. In March 2023 the functional authorities to jointly provide on-site services during

company established a monthly report mechanism for “12315” major holidays and solve customers’ demands in-person. enables the company to continuously improve its service capability and competitiveness.complaints and implemented a policy of handling major customer

complaints within a specified time frame.

4 In terms of service guarantees the company has a

professional after-sales service team in place that provides

3 The company is increasing its flexibility in handling customer a 24-hour hotline service and an online customer service Case study: Haikou International Duty-Free Shopping Complex conducts in-store customer

complaints and is improving the completion rate for customer portal. The company is improving the emergency support

complaint handling by using after-sales coupons discounts and of call centres and increasing the efficiency of customer satisfaction surveys to identify and rectify gaps in servicesother incentives. Departmental links are strengthened for the complaint handling to a standard of “over 97% response rateregular analysis and consultation of merchandise deliveries and at call centres an online customer service response within 10 In 2023 Haikou International Duty-Free Shopping Complex conducted in-store customer satisfaction surveys as a multi-dimensionalother issues and to upgrade after-sales management. seconds and a satisfaction rate exceeding 99%”. study of the consumer shopping experience. A total 4813 questionnaires were completed revealing an overall satisfaction rate of

98.47%. Improvements have been made based on feedback from customers including improvements related to front-line service

5 The company has built and is leveraging the intelligent customer

personnel and service materials as well as to the publication of promotional information. In addition special plans for service

The company continuously explores the application of smart

service platform. In 2023 it built a customer service liaison centre 6 improvements have been developed and implemented. Service satisfaction has been increased by identifying and rectifying gaps in customer service intelligent functions. For example intelligent

at its headquarters subject to the normal operations of existing local IVR voice navigation has been piloted in different time customer service.customer service call centres connecting local call centres with periods robot callbacks in different businesses and manual

headquarters under a centralised intelligent management platform quality inspection assisted by intelligent quality inspection Haikou International Duty-Free Shopping Complex has made follow-up calls to VIPs who have a business relationship with the company

for customer services generating data on customer service value with 100% sample coverage. or are members of the VIP team. In 2023 a total of 773 follow-up calls were made with a follow-up satisfaction rate of 98.45%. VIPs

for the Operations Procurement and other departments. When

completed a unified customer service number will be assigned in offered 31 suggestions and 100% of the issues raised were rectified.cdf affiliated companies ticket data classification will be unified

core indicators for management will be standardised management

processes will be optimised and centralised the goal of an intelligent

voice robot for response and outbound calls will be achieved and

ticket assignment and circulation within the complaint and public

opinion system will be enacted. Case study: Sanya Downtown Store carries out a regular survey of consumer satisfaction to

empower its service business

In 2023 Sanya Downtown Store conducted regular consumer satisfaction surveys and continued to generate in-depth analysis reports

on data related to its business orientation and members’ consumption habits and preferences with the aim of identifying business

The company’s affiliated companies formulate classified complaint response measures according to their own conditions. For example CDF problems and opportunities and empowering business development.International classifies complaints into those related to services products logistics and operations and designates the handling of solutions

for each category.

123

Maintaining effective public opinion management to understand consumer needs and expectations

I n 2 0 2 3 t h e C u s t o m e r The company cont inues to Since May 2023 the company

The company maintains a system for the effective management of public opinion in order to understand consumer needs and expectations Management Department of collect customer feedback. In has been collecting customer

in a timely manner. The company monitors information across the network collects it and sorts it in real time stays updated on the Sanya Downtown Store made a satisfaction levels and feedback 2023 a total of

dynamics in a comprehensive and prompt manner operates a closed-loop monitoring system to implement a 24-hour early warning total of 12672 follow-up calls 2158 and generating regular research

for negative information and distributes information to all departments and stores in a timely manner for their effective handling. After including 7907 answered calls. customer survey questionnaires reports on shopping services

classifying and evaluating customer complaints the company deals with them by applying corresponding handling strategies. Analysis and All respondents were satisfied were collected including 1358 and other needs through monthly

judgment are steadily strengthened for the purposes of taking targeted preventive and control measures and preventing and eliminating with our services revealing a quest ionnaires on customer questionnaires from customers

adverse impacts in a timely manner. The company dynamically tracks unexpected negative information and post-handling developments customer satisfaction rate of service satisfaction that revealed w h o h a v e j o i n e d t h e V I P

and continuously monitors relevant information. Customer complaints are promptly summarised sorted out and reflected on upon their representing an a satisfaction rate of 94.9% programme. More than

occurrence dissemination and handling to safeguard the company’s steady development. 100% alongside more than 800 thematic 500

increase of about 0.1% over questionnaires with a satisfaction samples have been received

2022. 90% revealing a good rating of overall rate of more than . satisfaction.

50 51China Tourism Group Duty Free Corporation Limited * 2023 Environmental Social and Governance Report Prosperity

▍Innovation-driven Development

Case study: Working with InterContinental Hotels Group (IHG) to enable the two-way

The company continues to provide innovation-driven services to meet consumers’ growing demands and enable their pursuit of a better life. exchange of exclusive privileges for VIP members

Innovating the service experience in response to new consumption demands At a press conference on 10 August 2023 an in-depth partnership was announced between the company’s cdf membership

programme and IHG One Rewards a global guest loyalty programme of InterContinental Hotels Group. The two parties have enabled

To further meet consumers’ diversified shopping demands the company insists on prioritising consumer needs embracing the latest the two-way exchange of exclusive privileges for VIP members under excellent and consistent operating standards and service quality.consumption trends innovating consumption scenarios and providing customers with an immersive shopping experience. For example Based in Hainan a popular destination for tourists and duty-free consumers the parties offer flexible access to member privileges for

stores in Hainan have introduced various forms of shopping that allow consumers to visit play and interact through such immersive global tourists. Hainan has become a focus point for reaching out to the international tourism market and the starting point of a one-stop

experiences as camping visiting bazaars attending concerts and other events. Exclusive intellectual property (IP) activities have been staged journey for “duty-free shopping and luxurious accommodation”. The company won the “Best Launch Event Award” from the Moodie

to meet consumers’ increasingly segmented and diversified consumption needs. Davitt China Travel Retail Report the authoritative media in the global travel retail industry.Case study: The company and China UnionPay jointly

Case study: The 5th CTG DUTY-FREE Offshore Duty-Free Year-End Carnival to warm up the initiate an IP-themed marketing campaign

winter shopping and duty-free shopping spree

As part of their strategic partnership the company and China UnionPay have created an

As an important festival IP of CTG DUTY-FREE to welcome Hainan’s traditional tourism peak season the 5th CTG DUTY-FREE Offshore exclusive themed marketing campaign: The Members’ Bonus Points Shopping Festival.Duty-Free Year-End Carnival was held from 15 November to 31 December 2023. The two parties introduced the concept of a “dual membership” which allows bonus

points to be exchanged under either membership programme and activates marketing

The company collaborated with its six stores in Hainan offline and online shopping links during the payment process thereby increasing the value of members’ rewards

malls and many brands to exhibit a collection of boutiques. Through themed and providing a better shopping experience to cdf members. The “dual membership”

campaigns debut store showcases cross-sector collaboration celebrity store visits concept introduced by this campaign replaces traditional payment rebates with cdf

and multiple other forms of interaction the company provided a spark to the year-end points and activates marketing links throughout the payment process representing a

shopping carnival and helped release the potential of offshore duty-free consumption. breakthrough in the marketing model in the traditional payment field. The campaign

won the Best Collaborative Campaign of the Year (Retail Winner) at the 2023 Moodie

Davitt Award Ceremony hosted by the Moodie Davitt China Travel Retail Report the

authoritative media outlet in the global travel retail industry.A themed flight

Case study: Sanya Phoenix Airport Duty-Free Shop engages in cross-sector collaboration to

promote duty-free tourism retail

Sanya Phoenix Airport Duty-Free Shop Phase 2 adopts a strategy that promotes multi-dimensional cross-border win-win collaboration.It has worked with more than ten 5A and 4A scenic spots various well-known cultural and tourist sites and over 80 five-star high-end

resort hotels in Hainan to explore opportunities for interactive collaboration that link culture entertainment and duty-free tourism retail.Through expanded payment channels provided by China UnionPay China Merchants Bank China Guangfa Bank Alipay etc. the shop

Haikou International Duty-Free Shopping Complex – West Gate has introduced various gifts discounts red envelopes lotteries and other exclusive shopping rewards. Meanwhile by partnering with

China Southern Airlines Juneyao Airlines etc. the shop has introduced customised flights and rewards to jointly promote the grand

In November the company partnered with airlines to launch themed flights to create opening of this new landmark duty-free retailer in Sanya.a festive atmosphere and bring passengers immersive new and interesting interactive

experiences while propagating knowledge of duty-free goods and promotional Aerial view of Sanya International Duty-Free

campaigns. Shopping Complex Phase 1 Plot 2

Case study: The company and Luzhou Laojiao jointly create an exclusive journey named

The company also worked with its stores to launch the cdf Handbag Festival and the cdf Wine Festival themed campaigns providing a fun

one-stop experience for duty-free consumers. Sanya International Duty-Free Shopping Complex initiated the “Christmas Shopping Season” “Enter Luzhou Taste the Cellar” for Diamond VIP members

and other year-end carnival campaigns to offer consumers a more exciting interesting and diverse shopping experience. The Haikou Riyue

Plaza Duty-Free Shop launched its new “selected liquor brands for quick delivery to members” service. Liquor products can be delivered I n Oc tobe r 2023 t he company

in 2 hours to locations within 8 kms of the duty-free shop allowing consumers to enjoy their drink with a single click. In addition Haikou worked with Luzhou Laojiao to create

Riyue Plaza Duty-Free Shop has also initiated the “cdf Lighting life” campaigns that focus on popular activities like surf skating coffee social an exclusive tr ip for Diamond VIP

meet-ups and pet parties to create interactive entertaining and interesting social scenarios that provide consumers with a new shopping members. Diamond VIP members

were invited to visit the Luzhou Laojiao

experience.Museum Chunyang Cave Qiankun

Wine Fort and other tourist attractions

Working with partners to broaden the scope of services to experience the profound history

and exquisite brewing technology of

Currently demand for high-quality consumption is increasing as China accelerates the pace of its economic recovery. By integrating high- Luzhou Laojiao and gain a deeper

quality resources and working with global partners and consumers the company and its partners work together to create consumption understanding of the history culture

scenarios build an ecosystem of consumption act as trend setters in consumption actively explore and innovate activities further improve and customs of this premium liquor.services and jointly expand and share the tourism retail market. The company aims to provide unique and exclusive experiences to Group photoThe activity was warmly received and

members to improve their lives. highly regarded by our members.

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Creating a Comfortable Environment for Consumption to Ensure Trusted Business Operations

Case study: The Third cdf Brands Day

▍Product Quality Guarantee The company staged the third brands day campaign with the theme “Embracing Warmth and Beauty” and released the “C-LOONG”

IP for the Year of the Dragon. The campaign aims to deliver warmth love beauty reunion and blessings from cdf to all of society.The company strictly enforces procurement management measures and continuously monitors supplier selection and product quality “C-LOONG” greets and embraces people from different cities using local dialects at more than 10 cdf stores in Beijing Hangzhouassurance. In 2023 the company has issued the “Regulations on Safety Management Quality-Risk Early Warnings Inspection and Testing Guangzhou Chengdu Hainan and other cities.for Imported Commodities (Trial)” which standardises and institutionalises quality and safety management for our imported commodities. We

have strengthened safety and quality control for imported commodities to ensure that the company meets its responsibilities and protects

consumers’ rights and interests.In 2023 we improved our “Procurement Management Measures” and strictly enforced the procurement approval process. The company

has formulated more detailed regulations on the methods and procedures for supplier selection the methods used to assess suppliers

and supplier bidding and procurement behaviour. For the supplier sourcing process we have strengthened the supervision and review

of suppliers to guard the “entrance gate”. The company has also established a list of qualified suppliers and incorporated compliance

performance requirements into the evaluation process for suppliers. We dynamically adjust the qualified suppliers list by promptly removing

any suppliers involved in irregularities.Haikou Riyue Plaza Duty-Free Shop Haikou Meilan Airport Duty-Free Shop C-LOONG gift C-LOONG gift

The company regularly communicates with suppliers on how to further improve product quality. The company requires suppliers to establish

a mechanism for information exchange so that if the product recall process is triggered due to product quality problems the company can The company continues to develop brand stories expand communication channels and innovate new communication methods. News

take timely actions to protect the rights and interests of customers. The company attaches importance to the handling of product quality

problems and actively works with suppliers to ensure product quality standards are met so that our users can shop with confidence. pictures videos activities and other publicity channels are used to showcase the new brand styles and narrow the distance between

brands and consumers using rich brand content and diversified forms of expression. At the beginning of 2023 the company used its

In terms of food and beverage safety the company has made every effort to establish video account to showcase its offshore duty-free business in Hainan and new brand styles continuing to enhance the influence of

and improve its comprehensive management systems including those related to food Supervision tourism retail brands in China.Management

management rules supervision and monitoring traceability cooperation inspection and Rules and

testing to ensure the food safety of our pre-packaged goods. We adhere to standardised Monitoring

online and offline management standards with respect to food safety and exercise Building a

whole-process control in this area. In accordance with the Law on Product Quality the comprehensive

requirements of the commodity quality standards issued by the SAMR and the National management

Standardisation Administration and other laws and regulations the company has re-signed system for food and The distribution of its brand partners is 542 in total has 1455 well-known brands sales over 46 types of goods

agreements with domestic liquor producers and suppliers and the new agreements include beverage safety

the “Liquor Quality Assurance Agreement” which helps the company ensure the quality of and over 350000 SKUs of goods.its products protect the rights and interests of consumers. For goods with special storage Traceability Inspection

requirements such as chocolate that needs to be stored below 20 degrees our stores Cooperation and Testing

strictly enforce the storage and transportation standards provided by suppliers and maintain

daily temperature and humidity measurement records. Optimising Supply Chain Management Driven by the Environment and Intelligence

In respect of the management of goods close to expiration the company disposes of them by means of return shipments returns to suppliers for

exchange selling them at a discount offering special promotions and destroying them under the supervision of customs in accordance with the

product categories and actual circumstances. The company strives to reduce goods close to expiration by forecasting market demand flexibly The company aims to establish a green supply chain to align its operations with the nation’s goal to construct an ecological civilisation.deploying goods and improving procurement efficiency with the goal of enhancing resource use efficiency and operating effectiveness. Based on standardisation and driven by green intelligent and innovation the company has continuously been optimising its supply chain

management.▍Responsible Marketing and Sustainable Brands

▍Supply Chain Management

We attach great importance to the management of advertisements and new media marketing. In accordance with the Advertising Lawand other laws and regulations the company has formulated relevant documents such as the “Regulations on the Management of Press The company has established good partnerships with suppliers and established a secure and stable supplier cooperation mechanism.Release” and the “Marketing Activities Management Measures” to strengthen management and control over marketing activities. The

company’s affiliated companies also formulate detailed management regulations following their respective business conditions including

the “Regulations on the Management of Promotional Videos and Brochures” “Regulations on Advertising and Publicity Management” Supplier admission

“Regulations on the Management of Marketing Activities” and “Regulations on the Management of External Publicity Information” etc. to

regulate all aspects of marketing management.In accordance with the “Supplier Management Regulations (Trial)” of and in view of the company’s business situation the company has

To explore sustainable development strategies for its brands the company has accelerated its transition towards digital management with established a supplier management working group and formulated supplier admission criteria based on product category. For public

the aim of becoming a global leader in this area. The company comprehensively improved its data capabilities and developed a membership procurement projects such as open bidding open competitive negotiations and open inquiries the winning bidder or the bid awardee can

system called OneID therefore formed CTG DUTY-FREE’s own member tracking system. Based on the results the company has been able be directly included in the company’s supplier database. In addition to public procurement interested suppliers should apply to relevant

to empower its brand; enhance collaboration consumer services and marketing activities; and optimise tourism retail operations. Through divisions for admission according to the procurement relationship and the management procedures.this analysis work the company was able to effectively mine the commercial value of its membership data and devise plans for how to use

this data more effectively in the future. In the process of selecting and approving suppliers we conduct research and studies on the supplier market steadily strengthen supplier

development and require that domestic suppliers be certified through a state-certified supervisory and management information platform.In terms of marketing activities the company has been adding new momentum to the tourism retail market by organising a series of The company reviews suppliers’ certification information and business information runs checks to determine whether suppliers have any

themed marketing activities and consumption scenarios. Through these efforts consumers can enjoy a wide variety of luxurious and quality record of legal or regulatory violations and strictly implements supplier audit and selection processes.products colourful themed activities interactive experiences and considerate services.

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Tiered supplier management Green Warehousing

According to the company’s “Supplier Management Regulations (Trial)” the company based on the results of dynamic evaluation manages The company is actively responding to national policies in the comprehensive implementation and promotion of green warehousing. We aim

suppliers under a tiered system that includes: to reduce transportation costs and improve warehousing efficiency in order to conserve energy and reduce emissions.* The company adopts a scientific and reasonable warehouse layout to integrate warehouses and ensure optimal loading capacity and

vehicle utilisation. In the process of warehouse operations goods are stored and handled taking into account their characteristics and

shipping requirements to minimise inventory losses.When a division issues a procurement invitation Grade A suppliers within the division should be given

excellent * The company gives priority to the use of energy-saving environmentally-friendly and recyclable logistics equipment and facilities.Grade A priority to participate in the procurement project within its scope of business under the same commercial

suppliers terms. Grade A suppliers shall be downgraded to Grade B if they have not had procurement transactions

with the division for one year since the date of the last completed contract. * The company has fully applied artificial intelligence (AI) and remote control technologies to improve overall warehousing and logistics

efficiency with a view to reducing costs increasing efficiency and promoting green development. A warehouse management system is

installed and adopted in each logistics centre to standardise warehouse operations in a more scientific and reasonable way to improve

good the efficiency of warehouse management and to reduce energy waste. We have deployed the Internet of Things (IoT) and management

Grade B Suppliers with which there is regular business cooperation. control systems such as automated guided vehicle (AGV) robots and autonomous case-handling robots (ACR) and automatic equipment suppliers such as clothing hanging chains and four-way shuttles for integrated storage handling and warehousing in logistics centres in Shanghai

Shenzhen and Hainan. These systems and equipment enable intelligent handling picking and sorting and optimise processes for inbound

There are deficiencies that should be focused on and subject to rectification. Generally warehousing inventory management replenishment sorting and shipping. Compared with traditional warehousing the operational

suppliers procurement transactions shall be suspended during the rectification period. For an efficiency and storage capacity per unit are significantly improved substantially reducing land use and energy consumption.Grade C subject to individual supplier with which a procurement transaction cannot be suspended the

rectification purchaser shall negotiate with the main person responsible inform the supplier to improve The box-type robot can pinpoint and transport goods with specific SKUs

its service level and supply quality and try to develop or cultivate alternative suppliers. enabling higher sorting precision. The official launch of the box-type robot

suppliers has significantly improved the overall operating capacity of the Qianhai e-commerce warehouse and doubled its order picking capacity resulting

Grade D should be Suppliers with which procurement transactions should be suspended for three years. in an error rate of less than 1/10000. Moreover the box-type robot has

phased out also helped the warehouse surpass the previous height limits imposed by

manual order picking. As a result the warehouse has been able to expand

the number of shelf layers from 4 to 7 which has doubled its cargo box

storage capacity from 4500 to 9000. In addition the box-type robot AGV robots storage Clothing hanging chains

operates in a paperless manner by skipping order printing.In according with the requirements of the SASAC the company implements a supplier evaluation model that combines dynamic The company has promoted robotic sorting in the Sanya E-Commerce

evaluation and annual qualification inspection and under which the dynamic evaluation results serve as an important basis for warehouse Sunrise Shanghai e-Commerce warehouse and other sites. The

supplier grading and selection. intelligent console intelligently monitors the entire process which greatly

improves picking accuracy and sorting efficiency.▍Intelligent and Green Supply Chain * The company gives priority to partners who focus on environmental

protection and sustainable development to ensure that all players involved in Four-way shuttles and AGV robots storage

To implement the 14th Five Year Plan for the Green Development of the Industrial Sector the company strives to play a pivotal role in the supply chain are committed to emissions reduction energy conservation

developing an intelligent and green supply chain drive the efficient utilisation of resources and energy across upstream and downstream and intelligent optimisation.enterprises and promote green development.Supplier ESG Management

Intelligent Supply Chain

In 2023 the company urged suppliers to use more environmentally friendly products and services. For example suppliers were asked to use

recyclable materials no-glue cartons and other environmentally friendly packaging materials. The environmental requirements and audits of

We are committed to digitalising and visualising the supply chain system and improving its efficiency and resilience by improving information suppliers were also tightened.transparency. Through a visualised supply chain system we can monitor and track the logistics inventory deliveries and other key

indicators along the entire supply chain in real time. Using visualised data the management and relevant teams can clearly understand the We recently updated the company’s procurement policies and guidelines and defined environmental requirements in detail. For example

status and trend of the supply chain. A digitalised supply chain system can be used to more accurately predict demand optimise inventory we included goals for reducing packaging waste to save resources and promote sustainable development. We conducted in-depth

management and achieve rapid responses and flexible adjustments of the supply chain reducing costs and risks. communication and audits with suppliers to ensure they meet the latest environmental standards and requirements and we required

them to provide more comprehensive certifications related to environmental protection. For example we give priority to suppliers with

The company is clearly aware of the key role played by suppliers in the supply chain. Data exchange and supply chain integration between ISO 14001 certification for environmental management systems. In terms of supervision we have strengthened our mechanism for

suppliers manufacturers and distributors is achieved through a visualised platform and digitalised supply chain helping provide standardised evaluating and monitoring suppliers’ environmental performance. We regularly review and evaluate suppliers keeping a close watch on the

and digitalised information of merchandise. As a result operational efficiency is improved for enterprises and supply chain partners and they implementation of their environmental protection policies and measures and we work closely with suppliers to jointly promote the realisation

are able to engage in harmonious win-win cooperation. of environmental protection goals.The company considers the geographical location and climate of key suppliers in its supply chain management. Through the visualised Through these updated practices and implementation and monitoring approaches we are tightening requirements on suppliers’

intelligent supply chain platform logistics personnel can identify optimal shipping routes and prioritise deliveries to reduce carbon emissions. environmental responsibilities and ensuring that selected suppliers continue to improve and innovate their environmental protection

In addition robots are used to sort and optimise transportation routes to improve the efficiency and accuracy of sorting and reduce energy practices with the aim of achieving more sustainable supply chain management minimising adverse impacts on the environment and

consumption during transportation. providing customers with more environmentally friendly and reliable goods and services.The company regularly collects data related to suppliers’ sustainability and ESG performance. We inquire about suppliers’ environmental

system certifications and conduct risk assessments on suppliers’ performance related to environmental and social factors every year.

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Engaging in Charity Initiatives to Act as a Responsible Corporate Community activitiesThe company organised a second-hand clothing donation drive with the theme “Donating Clothing in Harsh 7Winters” for the 15th consecutive year sending our care and recycled materials to the places most in-need.▍Actively Participating in Public Welfare and Charity Initiatives In 2023 to echo the “A Piece of Paper Donate Your Love” project launched by the China Charity Federation

the company donated used clothing and other unused items for sale with the proceeds going to charitable

Environmental protection organisations to be used to treat children from disadvantaged families with congenital heart disease and patients

with echinococcosis in Tibet.The company takes the initiative in environmental protection and social well-being

In November 2023 more than 30 volunteers from the third Party Branch of Sanya Downtown Store and the Party

campaigns such as “Guarding the Coral Sea” “Mangrove Restoration” “World Ocean 8Branch of Haifeng Village jointly staged the Party Day activity themed “Zebra Crossing Safety and Courtesy”.Day” and “National Low-carbon Day”. These activities aim to convey the concept of

Volunteers explained basic traffic safety rules and knowledge to the public at the intersection of the zebra crossing

environmental protection and allow the company to give full play to its advantages

at Sanya International Duty-Free Shopping Complex educating people to travel in a civilised manner alongsidein shouldering social responsibilities alongside the principle that “development andpractical actions to take.environmental protection should go hand in hand”.In June 2023 the company’s “Spark Hero” volunteer team went 9

1 On 7 and 8 June 2023 Sanya International Duty- 1 7 to the Zuojiazhuang Street Elderly Care Centre to carry out a

Free Shopping Complex staged “World Ocean Day” a volunteering activity with the theme “Greetings during the Dragoncampaign with the theme of ocean protection. By working Boat Festival”. Volunteers brought milk fruit and other festive food to

with The Mangrove Sanya and Wuzhizhou Island Tourist the elderly made rice dumplings with the attendees and helped stage

Scenic Area we organised volunteers to clean up garbage art performances and other activities sending their warm greetings to

along the coastline advocated marine environment the elderly from the Party organisation and society.protection and emphasised working together to protect

the ocean.

2 In April 2023 the Hangzhou cdf organised its employees

to clean up garbage along the road and from the grassy

areas around Hangwu Mountain making our contribution 2 3

to the beautiful environment of Hangwu Mountain.

3 In November 2023 Sanya Downtown Store volunteers cleaned up the

dead-ends of roadside sidewalks inter-village roads parking lots and

other areas to help create a clean and beautiful environment.

4 On 27 October 2023 the company headquarters and CDF Investment 9 8Development jointly launched the “Creating a Beautiful EnvironmentSharing Lucid Water and Sky” voluntary initiative to improve the

environment along the Liangma River while providing publicity to

tourists.

4

Educational programmes

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5 In 2023 Guerlain continued the brand’s initiative of sustainable

development themed “Bee School” activities. At the invitation On 7 April 2023 all party members of the Guangzhou Xinmian Party Branch went to the 10

from the brand the company’s employees and their families Huanghuagang 72 Martyrs Cemetery to stage the memorial tomb sweeping ceremony for martyrs.volunteered to learn about bee protection at the bee conservation

base participated in physical tasks further promoted the concept

of environmental protection ecosystem protection and sustainable In April 2023 staff representatives from the Shenyang cdf went to the Chinese People’s Volunteers 11

development and took practical actions to fulfil our corporate social martyrs’ cemetery in Shenyang to lay flowers sweep tombs and listen to the stories of war veterans.responsibilities.On 2 February 2023 during the Spring Festival travel rush Haikou International Duty-Free Shopping

6 On the eve of the 2023 June 1 International Children’s Day the Haikou Meilan Airport Duty-Free

12

Complex arranged a team of staff members to deliver drinking water milk snacks and other

Shop volunteer team visited Hainan (Haikou) Special School to stage the “Love Heard” activity. 6 materials to drivers and passengers lined up in a traffic jam. The team served a total of 300 drivers

Volunteers sang songs drew sand paintings and played games with children to inspire self-esteem 12 and passengers. In addition the team has also sent their care to front-line police and city janitors.self-confidence a resilient spirit within physically handicapped children and convey the Party’s

energy.In 2023 Sunrise Shanghai launched the “Soma Blossom Student Assistance” charity programme. The programme aims to provide financial support for disadvantaged

students in Sichuan Province who cannot afford living expenses during their studies.

58 59China Tourism Group Duty Free Corporation Limited * 2023 Environmental Social and Governance Report Prosperity

▍Fulfilling our Social Responsibility as a Central State-owned Enterprise in Hong Kong Setting the Industry Benchmark for High-quality Development

SAR Macau SAR and Overseas

The company has been promoting a globalised business network and actively initiating overseas social well-being activities to draw attention ▍Following the Trends of the Time to Promote Industry Development

and support from all sectors of society so that more people can understand the importance of undertaking charitable actions.On the international stage the company is using international events such as the China International Consumer Products Expo (CICPE) and

2023 marked the 65th anniversary of the establishment of China-Cambodia diplomatic relations and it also marks “China-Cambodia the Asian Games to tell a new story of the tourism retail industry in China and calls for enhanced cooperation among all stakeholders toFriendship Year”. China and Cambodia entered the “diamond hexagon” cooperation framework ushering into a new era for the building of embrace a bright future for the industry.a community of a shared future between China and Cambodia. The three stores of CDFG (Cambodia) Limited have been promoting public

welfare charities and fulfilling their social responsibilities along the Belt and Road: The Siem Reap store made cash donations to the Angkor Launching various activities to be a part of the CICPE and promote consumption

Kanthabopha Children Hospital. The Phnom Penh store has organised 26 charitable activities for the Khmer Artist for Children Organisation.The Sihanoukville store has worked with the local government to implement the idea of protecting the marine environment cleaning and From 11 to 15 April 2023 the Third China International Consumer Products Expo was held in Haikou Hainan Province. The company was

beautifying beaches and building a beautiful home together. deeply involved in the expo for the third time setting up a booth of 600 square metres to display the new fashion trends of international

consumer goods boutiques as well as the rich history of the brands. In addition the company also co-hosted the Third Global Consumption

On the 10th anniversary of CDFG (Cambodia) Limited a charity art exhibition named “Childlike Innocence” was held in the Phnom Penh Innovation & Duty-Free and Travel Retail Conference the Sustainable Consumption Summit Forum and other events. The company shared

Store of CDFG (Cambodia) Limited. More than 100 philanthropists from China and Cambodia participated in the exhibition with all 30 and discussed new opportunities for the development of the duty-free and tourism retail industry alongside domestic and foreign experts

artworks on display being painted by children from the Khmer Artist for Children Organisation. There was also a charity sale arranged scholars and leading enterprises in the industry. The company played a leading role in sharing the new experience in China’s tourism retail

alongside the exhibition with the sale aimed at helping the Khmer Artist for Children Organisation raise funds for renovating buildings and industry against the backdrop of a “Consumption-Boosting Year” showcasing the innovative vitality of China’s tourism retail market and the

purchasing teaching and painting materials. surging power of its industry development.During the CICPE the company’s stores in Hainan launched various activities to further promote the release of consumption potential.Haikou International Duty-Free Shopping Complex staged creative performances during the Duty-free Culture and Tourism Week prepared

customised and special programmes based on Beautiful China and Skyrim Forest held a parade performance featuring the first drone

display of 2023 in Hainan.In addition a sub-venue for the CICPE Fashion Week was set up in Haikou International Duty-Free Shopping Complex. Well-known designer

brands from both China and abroad staged fashion shows in the venue during Fashion Week. To facilitate exhibitors in travelling between

Haikou International Duty-Free Shopping Complex and the CICPE main venue Haikou International Duty-Free Shopping Complex provided

free shuttle bus services including one-on-one privileged services for free bus rides for cdf members.With the spill-over effect of the CICPE Sanya International Duty-Free Shopping Complex has become a high-end commercial entity

preferred by many well-known brands in China and from abroad. In 2023 Sanya International Duty-Free Shopping Complex continued to

promote themed events for the third cdf Watch Festival bringing together global collections of watches rare watch pieces and cdf exclusive

CDFG (Cambodia) Limited has been providing targeted assistance brands starting a new upsurge in the duty-free consumption of high-end watches.to the Khmer Artist for Children Organisation since 2016 with

charity activities being staged each quarter. In March 2023 the cdf

“targeted charity and assistance base” was officially unveiled. The

Khmer Artist for Children Organisation was set up with the help of

many philanthropists and children give full play to their creativity

through pen and paper.In 2023 CDFG (Cambodia) Limited joined the Phnom Penh Branch

of Industrial and Commercial Bank of China to start a charity journey

with the Khmer Artist for Children Organisation. CDFG (Cambodia)

Limited and philanthropists donated stationery pigment milk

candy paper towels fruit and 1000 kg of rice and other materials

to the Khmer Artist for Children Organisation.In March 2023 the cdf “targeted charity and assistance base” was officially unveiled.The company’s stores in Hainan seized the opportunity of the high traffic The Third cdf Watch Festival

flow to reward consumers with diverse high-quality services

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Showcasing the Chinese tourism retail industry to the world through the innovative services and experience of the Asian Games including suspensions spheres and mirrors are ingeniously combined to create an immersive space to experience and demonstrate the rich

and romantic French style transforming the shopping mall into an art space for taking photos.During the Asian Games in Hangzhou the company’s Hangzhou Airport Duty-Free Shop focused on innovating new services and

experiences and optimising its service quality. From improving service standards and optimising product displays to establishing a

dedicated green payment channel for the Asian Games it has comprehensively improved the capabilities of core management services and

provided solid support for the Asian Games. The company made full use of Hangzhou Airport Duty-Free Shop as the “first stop” for inbound

travellers to the Asian Games. The shop showcased its image of being the world’s largest tourism retailer committed to providing quality

services.Beautiful decorations at the opening Star dome of Mingzhuang Wine In-store shopping scene Lounge leisure area on the 4th floor

ceremony Area on the 4th floor

The duty-free shop on the cruise ship “Mediterranea” of Adora Cruises was opened representing the start of a

duty-free shopping journey on the sea

On 30 September 2023 “Mediterranea” resumed its voyage from Tianjin Port. The newly renovated duty-free shop on “Mediterranea” under

China Duty-Free Cruise Services Ltd.(CDFCS) was also officially opened marking the resumption of the duty-free business of the CDFCS.The duty-free shop of 600 square metres is located on the third floor of the “Mediterranea”.Inspired by Mediterranean culture it provides more than 100 world famous brands including

Hangzhou Airport Duty-Free Shop fashion accessories watches and jewellery cosmetics perfumes tobacco wine special The duty-free shop of 600

Attending the Trinity Forum in 2023 to promote industry development and innovation food and souvenirs. It aims to create for cruise passengers a maritime shopping space

rich with a European style and artistic atmosphere and provide a unique and unforgettable square metres is located on the

maritime shopping experience. The duty-free shop on “Mediterranea” has also made a third floor of the “Mediterranea”

On 25 October 2023 the Trinity Forum jointly organised by the breakthrough in connecting with the cdf membership system extending the rights and

Moodie Davitt China Travel Retail Report (the authoritative media in interests of cdf members from the land to the sea for more attractive and higher quality it provides more than 100

the global tourism retail industry) ACI World and ACI Asia Pacific duty-free cruise services. world famous brands

was hosted by Hong Kong International Airport in Hong Kong SAR.As a platinum partner of the 2023 Trinity Forum Mr. CHANG Zhujun

the company’s standing Deputy General Manager was invited to

deliver a keynote speech on the first day of the forum. He introduced

the company’s recent developments including its achievements in

airports and overseas markets the rapid development of Hainan

market and its online business as well as the optimisation of

merchandise innovation and shopping experience upgrades and

stressed the need to strengthen operation capabilities and the use

of members’ big data to improve member benefits and rewards.He also elaborated on four prospects for continuous expansion in

offline channels and Hainan’s strategic layout. Mr. CHANG Zhujun Mr. CHANG Zhujun the company’s standing Deputy General Manager

was invited to deliver a keynote speech Cruise exterior Duty-free shop on the cruise

called on all parties to continue to strengthen collaboration and

exchange and jointly promote industry development and innovation. In terms of duty-free business rights onboard cruise ships the CDFCS won the duty-free business rights of the Italian Costa Atlantica

line and the Astro Ocean’s MV Piano Land line in 2018 and 2019 respectively. In 2022 we also won the duty-free business rights on

“Mediterranea” of Adora Cruises with the CDFCS having the right to independently operate three duty-free shops on cruise ships.▍Robust Planning for Future Development

As a leading enterprise in the global duty-free industry the company makes investments in development projects to expand its business

complexes with a focus on duty-free business and it has been deeply engaged in the cruise industry for many years. We aim to maintain

our leadership in the exploration of new growth patterns in various fields to enable a brighter future for the travel retail industry. Duty Free Shop on the

Duty Free Shop on the “Mediterranea” of Adora Cruises

A new offshore duty-free landmark Italian Costa Atlantica line

Duty Free Shop on the Astro

Ocean’s MV Piano Land line

Sanya Phoenix Airport Duty-Free Shop Phase 2 was opened on 7 September 2023. The project is a rare commercial complex in the Three Duty-free Shops on Cruise Ships

quarantine area of the airport. It operates a wide range of duty-free products including watches and accessories bags cosmetics

perfumes sunglasses imported wine electronic products etc. with a construction area of about 5000 square metres. Design elements

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03 PeopleProtecting Employee Rights and 66Promoting Their InterestsDiversified Training to Promote Staff 71Development

Operational Safety and Physical and 73

Mental Health

CTG DUTY-FREE actively responds to United Nations (UN) Sustainable Development Goals (SDGs) 3 5 and 8. As a people-oriented organisation

we care for our employees. We provide them with0 training and create a platform for 3the company and our people to develop together.China Tourism Group Duty Free Corporation Limited * 2023 Environmental Social and Governance Report People

Protecting Employee Rights and Promoting Their Interests Comprehensive Remuneration ManagementThe company adheres to the concepts of market-oriented remuneration determines remuneration standards based on the “doublebenchmarking” principle and matches the incentive level with the company’s development and talent strategy. The company has established

▍Employee Rights a performance and remuneration management system which aligns with the prioritises performance and follows the principles of fairness

positive motivation and sustainable development. We set the basic and performance salary ratios based on market practices. In this

We consistently uphold the “people-oriented” management philosophy regarding talent management and strictly comply with the regard the company determines the basic salary based on the position duties personal capabilities and other factors. The salary is much

Labour Law the Labour Contract Law and other laws and regulations as well as the international human rights and labour conventions higher than the local minimum wage level standard. The performance salary is linked to the company’s comprehensive performance the

and protocols that China has signed such as the Equal Remuneration Convention and the Elimination of Discrimination in Respect department’s performance and the individual’s performance forming a mechanism of effective incentives and restraints.of Employment and Occupation. We respect the Declaration on Fundamental Principles and Rights at Work issued by International

Labour Organization (ILO) and Guiding Principles on Business and Human Rights by the UN. We adhere to the principles of honesty The company actively implements the spirit of common prosperity to share the fruits of its corporate development with employees. In

trustworthiness fairness and justice in our dealings with employees and we fully guarantee their rights and interests. addition to basic salaries we offer monetary rewards to incentivise front-line employees whose positions may expose them to hardship

danger and heavy workload. Monetary rewards are also provided to employees who achieve excellent results in their performance

Recruitment Management appraisals. In this way we have built a system of positive rewards and incentives for our people.The company has developed a comprehensive employee recruitment system and has recruited our employees through on-campus In terms of medium- and long-term incentives the company comprehensively implements a system under which corporate managers at all

levels are contractually managed on a tenure basis. Under the system managers are required to sign contracts that reward them strictly in

recruitment job fairs recruitment agencies online recruitment platforms and internal recruitment. We sign labour contracts with employees. accordance with performance appraisal results. Tenure incentives are only awarded to managers who meet the contractual performance

standards.We adhere to the recruitment principle of focusing both on integrity and ability. We also respect differences encourage diversity and prohibit

any form of discrimination from upholding the principles of fairness impartiality and openness. Our company has formulated hiring criteria In accordance with national and local policies we have established and implemented a welfare system to make timely and complete

according to the actual needs of each position without imposing any restrictions related to age gender ethnicity religious beliefs or other payments of social insurance and housing provident funds for employees; and we also offer annuities supplementary medical care canteen

characteristics. For high-end talents we insist on a combination of external introductions and internal trainings attracting more talents on a dining and other welfare programmes to our staff. In this way we have built a multi-level welfare guarantee system based mainly on social

selective basis and selecting the best candidates to target for recruitment. insurance with corporate welfare programmes acting as a supplement.Employment Management Democratic Management

In regards of prohibiting child labour we strictly abide by labour laws and regulations check We continue to improve its democratic management system which is based on the trade union and the staff representative assembly. The

ID card during on-boarding procedures and forbid the employment of child labour. In terms 0 violation of laws and regulations company’s trade union is committed to safeguarding collective bargaining rights of employees; and it carries out its work following the Trade

of preventing forced labour we strictly prohibit restricting employees’ freedoms or forcing involving child labour or forced Union Law the Constitution of the Chinese Trade Union and other laws and plays a vital role in public affairs. The trade union effectively

employees to work by collecting deposits detaining documents or engaging in threats. labour promotes the participation of employees in the company’s democratic management and deliberations involving major issues concerning the

During the reporting year our company did not have any violations of laws and regulations vital interests of employees.involving child labour or forced labour.When formulating revising and deciding rules regulations and material issues that are directly related to the vital interests of our employees

Resignations Management such as labour remuneration working hours rest and leave labour safety and health management insurance and welfare employee

training labour discipline headcount management etc. we collect opinions from general meetings of employee representatives to ensure

Unless exceptional circumstances arise we generally do not voluntarily sever or terminate the labour relationship with employees. If it that decisions are made through consultation and on an equal basis. We then make public announcements to all employees or notify the

is necessary to terminate or rescind an employee’s labour contract we strictly follow the process in accordance with the requirements relevant departments or individuals after decisions are made. Employees may also appeal to the trade union through email WeChat in-

and procedures of labour laws and regulations. Those who should be given economic compensation according to the law will receive person talks and other channels.corresponding compensation according to the legal requirements. The company generally does not try to restrict employees’ choice of new

jobs. For cases involving competition restrictions such restrictions are handled according to the signed agreement.Holiday and Working Hours Management Case study: CTG DUTY-FREE offers training on labour and employment law in Hainan

province

We strictly observe regulatory requirements regarding national statutory holidays employees are entitled to annual leave maternity leavemarriage leave parental leave and additional blood donation leave parent-teacher conference leave etc. According to the company’s In October 2023 the Legal and Risk Control Department held the “Training on Labour and Employment Law for companies in Hainansituation we implement two working hour systems: standard and comprehensive working hours (for the frontline employees under province” in Haikou. All members of the company’s human resources management and legal and compliance management functions

particular working conditions). We strictly enforce the monthly 174 working hour working system. As for excess working hours we arrange in Hainan province attended the training either online or in-person. The training introduced necessary legal knowledge relating to

compensated leave or pay overtime according to labour laws and regulations to effectively protect employees’ rights to rest. employment compliance – from recruitment to the signing of labour contracts. In addition matters calling for precautions and risk areas

in the recruitment process were explained using real-life cases from the Hainan Labour Arbitration Commission and various courts.Two

Standard working Comprehensive

working hours hour working hours

systems

Training session

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Staff Profile

Total number of employees is 16789

Case study: Offering heart-warming greetings during Spring Festival

The number of accounting for The number of ethnic accounting for The number of foreign accounting for The number of

female employees 55.3% minority employees is 6.96% employees is 448 2.67% physically challenged Prior to the 2023 Spring Festival the trade union conducted on-site visits and paid

is 9285 1169 employees is 134 special subsidies to staff members facing financial difficulties and front-line workers who

were on duty during New Year’s Eve and Spring Festival.The number of accounting for The percentage of ethnic minority

male employees is 44.7% employees in the management is At the beginning of 2024 the company held a cdf dinner party in the canteen to

7504 10% Females in the Board of Directors and the Supervisory Committee account celebrate the 2024 Spring Festival. All members of the headquarters staff attended the

for 37.5%. Females in the management account for 34%. Females in party.Total number of new the senior managerial roles account for in middle managerial roles Internal hire rate 15% 20%

employees 2949 account for 35% and in junior managerial roles account for 43%.

694 4.13% In general we strive to provide financial assistance to employees experiencing difficulties and offer gifts to those who have gotten married or

0.04% 7 1978 484 2.88% 251 1.50% given birth to demonstrate support for employees facing hardships or major life events.0.06% 10 217 1.29% 423 2.52%

2.57% 431 11.78% 418 2.49% Staff library

2136

9.82%16491080.64%

12.88%

The number The number of The number of 55 0.33%of employees

by employee employees by employees by

To promote reading and personal

category (person) age

(person) region (person) growth and thoroughly implement

10683

16562 Pres i den t X i J i np i ng ’ s gu i dance 8045

98.65% 37.13% 6234 63.36%47.92% on reading we str ive to create an

atmosphere that encourages all our

North China Central China Northeast China people to read and to this end we have

Senior managerial roles Over 60 40-49 22-29 East China Northwest China Hong Kong SAR Macau set up a staff library.Middle managerial roles 50-60 30-39 Below 22 South China Southwest China SAR and Taiwan region

General employees Overseas

Employee turnover rate Trade unions at all levels regularly arrange reading campaigns:

Total employee turnover rate 16.63% of which employee voluntary turnover rate was 12.10%

Headquarters trade union CDF Investment Development trade union

Employee turnover rate by gender Employee turnover rate by category Employee turnover rate by age group Employee turnover rate by

geographical regionOver 60 58.52% ● Organises trade unions at all ● Under the “Readers of the PartyMale 16.09% Senior managerial roles 9.09% Chinese Mainland 15.65% levels to actively participate in Branch” initiative each month a Party 50-60 14.99%

4.82% themed reading campaigns. member is invited to share a book he/Female 17.05% Middle managerial roles 40-49 8.95% China’s Hong Kong she has read.

SAR Macau SAR

General employees 16.77% 30-39 12.22% ● Organises and stages reading and Taiwan region 31.01%

22-29 19.55% campaigns in spring under the ● Subscribes to professional business-

Overseas 22.31%

Below 22 39.57% themes of “Reading in Spring” related publications to cultivate a

“Happy Reading Time” and reading and learning environment“Countryside Visits and characterised by “continuous self-▍Employee Care Writing”. study self-improvement and self-development”.Based on the principle of “understanding our people meeting their needs andaddressing their difficulties” we continuously strive to care for our employees’

needs. Our company also improves employees’ working conditions enhances cdf Wuhan Airport trade union Guangzhou Xinmian trade union cdf Kunming Airport trade union

and ensures their quality of life increases their happiness and satisfactionand generally creates conditions that make employees “proud to work at CTG Organises all staff members to join Purchases books to suit staff needs in Organises a l l s ta f f members toDUTY-FREE”.the “Forging Ahead on a New Journey line with the company’s development download selected appl icationsIn terms of employee benefits we have formulated the “Administrative in the New Era” reading campaign. status and encourages employees to collect and share books of interest

Regulations on Assistance for Sick Employees and the Collective Welfare of Staff select books of interest from actively take part in reading. and share information about theirTrade Unions”. The company’s trade union conducts complete investigations the recommended book l ist and reading experience in the airport

to collect employees’ opinions. It sends warm and considerate blessings share insights from their own reading lounge.to employees on holidays and birthdays based on their age tastes and

living habits. The company demonstrates care for various groups such as experience.employees with difficulties and female employees. The company advocates an

inclusive culture and fully considers the needs of ethnic minority employees.For example we have set up a halal canteen for Hui staff.Halal canteen

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We organise various cultural recreational and sports activities for Diversified Training to Promote Staff Development

employees. For example the company stages festival celebrations Case study: Staging social and dating

and promotes cultural and sports interest groups to enhance

employees’ well-being and spiritual lives. events for staff

We have established talent-specific training systems that align with operations and international standards to build smooth career paths for

To cater to the needs of young employees the company heldDuring the period from April to May 2023 11 trade union groups of our employees and provided them with a robust platform for their career development.two sessions of social and dating events “Enjoying Youththe company organised a total of 22 spring outings for employees. and Encountering Romance” for young employees in Beijing

and Haikou in October and December 2023 respectively to ▍Employee Training

provide an opportunity for young single people to socialise

and enhance the sense of belonging and happiness of young The company regards strategic development as the core goal of training and establishes a robust talent development and training

talents. mechanism promotes talent development and creates and develops a youth talent pool to enhance our core competitiveness. To this

end our company has formulated “Training Management” and we enhanced training under the management principle of “grading andclassification and training for all employees”. Under this principle we provide various types of training for employees across different

positions and levels carry out new hire training for new joiners organise training courses for middle and senior management and take

various other measures to strengthen the company’s professional talent pool.In 2023 we worked with a third-party organisation to diagnose and optimise the training system and we formed a training system plan for

management talent and key business professionals for the coming 3-5 years as well as specific training plans for each year. Throughout the

year the company provided training courses in various forms via online and offline channels. In 2023 1520 key training sessions were held

resulting in a total of 148000 attendances and 547000 total training hours. On average during the year each employee completed 32.8

training hours. The total expenditure on training and development is CNY7.543 million.In 2023 Hainan DF initiated the Leadership and Navigation talent cultivation programmes to comprehensively improve high-calibre talent

and build an internal talent reserve. A total of 42 hours of training courses were provided with 212 attendances recorded. Furthermore

Hainan DF launched the On-board Programme to help newly promoted managers in professional and management functions quickly adapt

Various spring outings Staff social and dating event “Enjoying Youth – Encountering Romance” to and take on their new roles. This latter programme lasts for about 30 days and a total of 35 people participated in the training.In terms of the work environment we have made various efforts to improve office facilities provide convenient services and ensure that

employees are satisfied with the company canteen. Our company is fully committed to creating a convenient and comfortable working

environment. In addition we provide comfortable nursing rooms to protect the privacy and rights of breastfeeding mothers and generally

show respect for female employees.For talent in key business areas such as retai l operations In September 2023 approximately 50 operations and management

and procurement special t iered and categorised training professionals from affiliated companies at all levels participated in the

programmes are delivered “Special Training for Retail Operations”

Staff centre with 247 square metres Employee recreational and sports centre: equipped with central air

conditioning dance mirrors soft seating fitting rooms and other

necessary equipment and facilities

In December more than 40 managers of subsidiaries below In August approximately 70 procurement personnel from thea designated size part icipated in the “Special Training for headquarters procurement centre participated in “ProcurementOperations and Management” Strategy and Negotiation Skills Training”

Starbucks coffee machines in office area Warm and festive decorations in the company lobby

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In August we organised a five-day training for new joiners. Heads ▍Employee Development

and representatives from 10 departments from headquarters and

more than 50 new joiners participated in the training. The training Based on employees’ career development needs we continuously improve the talent management system and consolidates the foundation

of talent management to offer smooth career development channels to assist employees in achieving their dreams and living up to their full

featured three parts: an introduction to the company and its

potential.principal activities career orientation training for recent graduates

and team building activities. The participants bravely challenged According to the actual circumstances of the company we have established a ranking system covering all grades and types of positions

themselves and motivated each other during the training activities based on a hierarchical management system and job qualification criteria. The company determines the function level and rank of

demonstrating the perseverance collaborative spirit and youthful employees according to their abilities performance and qualifications. We allow two-way movement between management positions and

professional positions and use a ranking system that reaches every level and grade horizontally and vertically across our headquarters and

energy of this new generation of “cdf people”.subsidiaries. We have built multiple career paths – including through annual rank promotions promotions based on professional reviews

open recruitment of executives and an internal system for regular talent exchange – to align the development of each employee’s career

with the overall development of the company’s talent. We adopted the Management by Objectives (MBO) Key Performance Indicators (KPI)

Photos of the opening ceremony of the new staff training

and 360°Feedback for integrated employee performance management. The assessment includes both work performance and professional

We continue to organise management trainee projects and programmes training programmes job rotation and research projects to build capability and the performance assessment results are determined through the ranking of the overall scores of employees responsible for

the same tasks covering 100% of the employees.an internal reserve of young talent.In 2023 the company continued to promote the development of skilled talents. In respect of professional title reviews we are qualified to

In 2023 the company continued to run “China Duty-Free Academy” an online training platform. During the year the platform had 16500 review professional engineering titles; and staff members are encouraged to review and apply for professional titles in various fields. The

registered users covering almost all employees. To promote the use of online learning in 2023 courses for 25 topics were introduced and company continues to organise and implement the local filing of vocational skill level certification and it has completed the filing of the two

15 live training sessions were held resulting in a total of more than 410000 attendances and 7.5 average training hours completed per identified vocational skill levels of “merchandise sales” and “labour relations coordinator” with the local human resources and social security

authority.employee. The sessions included courses on product knowledge and sales skills for front-line sales staff including “Lecture on Watches”

“Fragrance Products and Related Sales Skills” “Knowledge of the Store’s Alcoholic Beverages” and other topics with a view to enriching

the product knowledge of staff. For professional staff at all levels we provide courses on general skills such as team performance and the Operational Safety and Physical and Mental Healthpower of communication. The company’s professionals also regularly deliver internal lecture sessions; and under the “Excellent Teachersand Excellent Courses” series of lectures the internal lecturers themselves have had the opportunity to view eight live and recorded lectures

which are designed to improve their capabilities as internal trainers. ▍Operational Safety

We vigorously carry out the establishment of a safety culture cultivate and refine the safety culture system with the characteristics of CTG

In 2023 we conducted trainings as follows: DUTY-FREE firmly establish the safety concept of “people-oriented service first and safety first” focusing on five major pillars of safety

including Party construction law mechanism science and technology and employee awareness to achieve the goal of “zero accidents” in

Employee Training Performance Summary operations safety.Indicator Sub-indicator Unit 2023 2022

Safety Compliance

Percentage of employees trained / % 100 100

Male % 100 100

Percentage of employees trained by gender The company strictly abides by laws and regulations such as the Work Safety Law the Law on the Prevention and Control of Occupational

Female % 100 100 Diseases and we have formulated the “Operation Safety Responsibility System for Staff” the “Operation Safety Management Measures”

Senior management employee % 100 100 the “Safety Training Management Measures” and the “Emergency Management Measures”. The company and each affiliated company fully

implement the main responsibilities of operations safety strengthening operations safety responsibility at all levels for staff establishing a

Percentage of employees trained by category Middle management employee % 100 100 duty list and a sound safety system and strictly carrying out safety measures.General employee % 100 100

10000 Party Construction

Total training hours / 54.7 33.0

hours

The company adheres to President Xi Jinping’s important statement on operations safety to arm ourselves intellectually and to guideAverage training hours completed per employee / hour 32.8 19.6 our practice. Party organisations at all levels give full play to their leading role improving the system of “equal responsibilities for CPCAverage training hours completed per employee Male hour 24.4 19.3 committees and government dual responsibilities and joint management”. All Party members should play an exemplary role in performing

by gender Female hour 30.3 19.9 their duties and ensure the implementation from the five aspects of safety regulations publicity safety deployment implementation safety

1 funds investment safety performance supervision and safety awareness enhancement.Senior management employee hour 152.1 162

Average training hours completed per employee

Middle management employee hour 35.2 22.6

by category

General employee hour 32.7 19.5

Chinese Mainland hour 34.2 19.6

Ensure the

Average training hours completed per employee Chinese Hong Kong SAR Macau Implementation

hour 18.1 16.1 from the Five

by region SAR and Taiwan region Aspects

Overseas hour 19.8 26

1 As far as the training courses organised by the company are concerned there is no significant difference for employees at different categories; however

the senior management participated in more intense trainings subject to the requirement on the training hours in the Regulations on the Education and Safety Safety Safety Safety Safety

Training of Cadres issued by the CPC Central Committee. Regulations Deployment Funds Performance Awareness

Publicity Implementation Investment Supervision Enhancement

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Safety Mechanism For all construction projects under CDF Investment Development

the company has set up mechanisms to exchange information and

collaborate in rescue efforts with the local authorities that handle

emergency management safety management health management

the company has clarified the composition and responsibilities of the Safety Committee. All large-scale stores

and projects under construction are equipped with full-time safety management personnel as required ensuring and meteorology among other areas.the smooth implementation of all safety work. Based on the actual situation of the warehouse the company

formulated the “Warehouse Management Code” and other normative documents to strengthen warehouse safety CDF International has engaged external trainers to explain and

In terms of

management and ensure the regular operation of the warehouse. In 2023 the company signed 129 copies of provide on-site guidance on how to combat terrorism theft and

operations

the Letter of Commitment to Operational Safety Energy Conservation and Environmental Protection covering robbery for all its overseas projects; and fire anti-theft anti-robbery

safety

each department and affiliated company to clarify management and assessment requirements and reward and

management anti-terrorism and other emergency drills have been carried out at

punishment standards and guide and supervise companies at all levels in the detailed implementation of related the company’s stores in Phnom Penh Siem Reap Sihanoukville

measures. Each department and affiliated company are encouraged to sign the Letter of Commitment and shoulder and other cities to improve employees’ emergency response skills

its responsibility so that the company can meet 100% of its operational safety responsibilities. and protect employees customers and their property.the headquarter of the company has established a risk classification and control mechanism has organised

In terms of

the company has formulated the Contingency Plan for Operational Safety Accidents. Under the plan all affiliated its duty-free complexes stores projects under construction and warehouses to carry out comprehensive risk operations safety

companies have established a robust system for emergency planning that covers fire accidents traffic accidents identification and evaluation controlling the safety risk according to the classification and has implemented the inspections and

In terms of electric shocks and other operational safety accidents. Affiliated companies have been guided to perform scenario

working mechanism of “one company one list one store one list”. The headquarter of the company regularly

prevention and

emergency simulation drills and effectively improve the efficiency of employees’ emergency responses. Employees participate

checks the management and control of significant risks serves guides and supervises all units to improve

control

management in the preparation of the annual emergency drill plan training on the use of fire-fighting facilities and fire evacuation

management and control measures in combination with safety inspections.of safety risks drills to improve their safety skills. All affiliated companies strive to strengthen on-site emergency rescue and

emergency response capabilities adjust and optimise emergency command systems and coordination and linkage

mechanisms and ensure materials equipment and personnel are prepared and targeted emergency drills are During the reporting period the company effectively strengthened hazard governance in production safety firmly established the bottom-line

conducted. principle of “unidentified hazards are accidents” thoroughly identified and rectified hazards and urged all affiliated companies to effectively

ensure operational safety and eliminate all forms of operational safety accidents.Each affiliated company also actively carried out emergency drills according to their actual situation. In June and November 2023 Haikou The company has been promoting the “Year for Strengthening Compliance Management” initiative. In accordance with national laws

International Duty-Free Shopping Complex carried out large-scale comprehensive emergency drills. During business hours drills were and regulations and industry standards we have determined criteria for identifying the company’s major accident hazards priorities and

carried out to prepare for fires caused by violent robberies and fires caused by spontaneous combustion of vehicles. The drills covered rectifications developed special action plans refined the division of responsibilities and task assignments and comprehensively identified

various emergency responses including anti-terrorism and riot control medical treatment material rescue and firefighting rescue among security hazards at store premises warehouses dormitories and other key facilities. Principals at all levels led teams in carrying out a total of

others. In total more than 2700 attendances were recorded for the drills. 315 safety inspections in 2023. The company’s Work Safety Committee has strengthened oversight of hazard identification carried out on-

site safety inspections at CDF Investment Development Sunrise China Sunrise Shanghai Hangzhou cdf the Shanghai Logistics Centre the

Dalian Distribution Centre the downtown stores in Dalian and various projects under construction. The Committee has reviewed the results

of interim safety inspections of key units in Hainan and has supported and guided all units to identify on-site safety hazards with a view to

strengthening overall safety management and preventing operational safety accidents. In addition all affiliated companies were organised

to actively carry out safety inspections before festivals and special on-site inspections were conducted to ensure fire safety gas safety and

crane safety among other safety concerns. Enterprises at all levels carried out a total of 468 safety inspections and identified and rectified

1907 safety hazards in 2023.

The company encourages front-line staff to act as safety whistle blowers and take the initiative in identifying and reporting hazards and

vulnerabilities. They are also encouraged keep a close eye on key issues safety hazards and control vulnerabilities to firmly defend the

bottom line of operational safety.Case study: Carrying out diagnostic troubleshooting and rectifications under the guidance of experts

Comprehensive emergency drills Joint fire safety drills

In July 2023 the company invited a group of external experts to carry out an interim operational safety inspection and assessment on

In November 2023 in partnership with the Sanya Fire Brigade focus areas and major projects in Hainan. This project was designed to promote reform leverage inspections to check the effectiveness

the Sanya Public Security Bureau’s Haitang Branch the Haitang of training and strengthen troubleshooting and governance of safety hazards in critical premises such as the company’s tax-free

District Emergency Management Bureau the Haitang District complexes projects under construction and logistics centres. In September 2023 the company engaged experts in fire prevention

Commerce Bureau the Haitang District Fire Brigade the Tengqiao electrical safety construction safety and other fields to carry out operational safety inspections at key units in Hainan before the Mid-

Police Station and other local bureaus and departments Sanya Autumn Festival and National Day. Under this effort for project sites under construction experts conducted hazard troubleshooting for

International Duty-Free Shopping Complex conducted a large-scale key processes and areas such as construction and installation special operations temporary electricity fire-fighting facilities on-site

practical drill for its comprehensive emergency response and held personnel management and controls with a view to guaranteeing the safety of subsequent construction.an emergency fire drill and personnel evacuation in zone C. These

drills drew more than 2300 attendances. Science and Technology

In addition in 2023 Hainan DF further raised employees’ awareness

of operational safety and emergency response issues by holding The company attaches importance to using safe reliable efficient and practical safety management technology to improve safety

activities such as Publicity Week for the Law on the Prevention and management. For instance we use facial recognition devices in various projects to achieve real-name people management and use

Control of Occupational Diseases and fire safety month and by drones to inspect construction sites improving the level of intelligent construction and automated operations and further improving safety

organising training and special drills on first-aid and fire safety. technology support abilities and operation safety guarantee abilities.

7475

▼ ▼China Tourism Group Duty Free Corporation Limited * 2023 Environmental Social and Governance Report People

Safety publicity ▍Physical and Mental Health

The company continued to cultivate a culture of “safety publicity”. As part of this effort we organised affiliated companies to stage publicity

We are fully committed to fulfilling our duties as a people-oriented company and puts the safety and physical and mental health of employees

and education activities such as fire prevention publicity month Publicity Week for the Law on the Prevention and Control of Occupational

first. In terms of occupational health management the company provides benefits that includes annual physical examinations for employees

Diseases national safety publicity and consultation day and safety induction training for new joiners. We also leveraged bulletin boards

and comprehensive medical insurance for employees and their young children including accident insurance serious disease insurance and

banners online learning “open classes” knowledge contests and other activities to promote and publicise operational safety laws and

medical insurance. In addition the company provides medical insurance that covers overseas medical institutions for expatriate employees

regulations and basic information regarding operational safety with a view to raising the safety awareness of all staff. In 2023 the company

and those who are on overseas business trips relieving employees of the burden of medical expenses while they are working abroad.organised and carried out 663 safety trainings a total of 154 lectures on operational safety with 18500 participants.In addition to promote the development of a safety culture the company organised a safety culture questionnaire for all staff devised the “Safety The company’s staff at construction sites may be exposed to a range of occupational hazards including noise dust vibrations toxic andCulture Manual” and invited external experts to host seminars on cultivating a safety culture. In 2023 the company and its affiliated companies harmful gases and high temperatures. Meanwhile merchandise handlers in logistics centres may be exposed to the occupational hazards

actively participated in the collection of best practice cases and articles for safety culture which was organised by the Publicity and Education of high and low temperatures. The company always pays attention to the physical and mental health of staff members and takes multiple

Centre of the Ministry of Emergency Management. The company and Sanya Downtown Store won the Ministry of Emergency Management’s measures to prevent occupational diseases:

best practice case for safety culture. In addition three articles submitted by the company Sanya Downtown Store and CDF Investment

Development were recognised among the best national articles for corporate safety culture. First we organise special training on occupational health and promote education on occupational health

management including the identification and prevention of occupational disease hazards occupational disease

classification and categories personal protective equipment and employee occupational health rights to

Case study: Staging activities for Operational Safety Month Special Trainings reinforce the foundation of the company’s occupational health management.In 2023 for Operational Safety Month the company staged various activities including operational safety training and drills with the aim

of promoting awareness and knowledge of operational safety. Haikou International Duty-Free Shopping Complex hosted the opening Second the company collects and publicises typical cases of occupational health and studies and analyses

ceremony of 2023 Operational Safety Month in Haikou. Emergency rescue drills for confined spaces and falls from heights were carried incidents such as deaths caused by inadequate implementation of heatstroke prevention measures

out on-site after the ceremony. administrative punishments for improper management of occupational hazards and failures to issue occupational

Collect Cases hazard notifications to provide reminders and lessons for employees and increase their awareness of the

importance of occupational health management.Third the company has been organising affiliated companies at all levels to stage activities for Publicity Week

for the Law on the Prevention and Control of Occupational Diseases. We carried out a series of publicity

and educational activities to promote education related to occupational disease prevention and effectively

raise employees’ awareness of occupational hazards. A total of 1450 occupational health publicity materials

Organise were distributed; 158 themed lectures were held; and 129 educational reminder activities and 39 publicity

Publicity consultations were carried out in 2023. These efforts reached a total public audience of 11548 effectively

Activities strengthening the foundation of the company’s occupational health management.Fourth identification and rectification actions are carried out to combat occupational disease hazards. For

example the company conducted inspections of the working conditions in facilities and distributed personal

Identification protective equipment with a view to preventing occupational diseases. In addition at all units under construction

and we comprehensively inspected measures that have been implemented to prevent occupational diseases and

Rectification analysed occupational health protection plans and emergency plans for occupational health accidents to prevent

and address potential risks related to occupational health.During Publicity Week the heads of Sanya Downtown Store led a team to visit front-line staff to understand the occupational hazards

facing each post and the implementation of preventive and control measures. CDF Investment Development organised specialised workers

and operators paint insulation professionals and other operators at sites under construction to carry out education and training related to

occupational disease prevention and checked the certification of specialised operators to ensure that 100% of the workers were certified.In addition all stores held regular meetings to educate their staff about occupational disease prevention and control and they displayed

posters and played videos to cultivate a culture that upholds occupational disease prevention and control. Sunrise China organised a lecture

on first-aid and invited experts from the safety and health education network to explain and demonstrate emergency treatments for health

In 2023 the company invested a total of CNY27.93 million in operations safety and this emergencies and heatstroke.safety investment provided a strong guarantee for the safe development of the business. invested a total of

In addition 314 drills were staged for different types of emergencies including firefighting

emergency evacuation in offices and operations areas typhoons and flood prevention CNY27.93 million During Publicity Week

drawing a total of 19500 attendances. In the past three years the company did not record in operations safety

any safety accidents. The company had no work-related injuries or deaths in 2023. The These efforts

fatality rate of the Company’s employees due to work-related injuries2 is 0 and the lost-time 1450 occupational 158 129 educational 39 publicity reached a total

injury frequency rate (per one million hours worked)3 is 0. health publicity materials themed lectures reminder activities consultations public audience of

2 Fatalities due to work-related injuries (per 100 workers) = number of fatalities due to work-related injuries/number of workers*100%; were distributed were held were carried out

3 11548 Lost-time injury frequency rate (per one million hours worked) (LTIFR) = number of lost time injuries/total number of man-hours worked in the accounting

period*1000000

76 77China Tourism Group Duty Free Corporation Limited * 2023 Environmental Social and Governance Report People

Case study: The first staff badminton championship Case study: Integrating sports and reading to safeguard

employees’ physical and mental health

To enhance the physical and mental health of employees enrich their leisure time after work and promote intragroup exchanges among

employees at all levels in 2023 the company’s trade union and Youth League Committee held the first staff badminton championship

which carried the slogan “Playing badminton to make new achievements” (羽动不凡 再建新功 ) with the purpose of promoting friendly Reading has been incorporated into weekly interest group activities. For example

competition. before and after their matches participants in badminton interest groups are provided

with readings to learn about common injuries and preventive measures with the aim of

promoting sports-related education and protecting employees’ health.Case study: Hangzhou cdf organised a fun sports competition

I n 2 0 2 3 H a n g z h o u

cd f o rgan ised a spor ts

compet i t ion to promote

communication friendship

a n d t e a m w o r k a m o n g

Beijing team’s group photo Hainan team’s group photo employees

Case study: Free clinic visits for staff

During the period from April to May 2023 the company invited experts from external medical institutions Case study: Female employees design flower arrangements and engage in yoga and meditation

to provide medical consultations physiotherapy and health education publicity activities for staff of the

headquarters and affiliated companies at all levels in Beijing. The company’s trade union and the Committee of Female Employees staged the

WO’MEN flower arrangement art salon to celebrate 2023 International Women’s Day.About 600 staff members took advantage of the free clinic consultations which included traditional Chinese At the activity more than 200 female employees from the company’s headquarters

medicine (TCM) pulse diagnoses acupuncture and massage sessions blood pressure and blood glucose expressed themselves by designing unique arrangements of flowers and plants with the

measurement consultations on common diseases publicity of knowledge on a healthy and scientific diet guidance of the salon lecturer.sub-health prevention and treatment and medication safety. Staff also received personalised healthcare

advice based on their specific situation with a view to providing them with scientific medical treatment and Free clinic activities In addition the company invites professional instructors to provide weekly yoga courses

encouraging a healthy lifestyle. to employees. Through these courses members of the yoga interest group can learn

meditation-related knowledge balance their body and mind and relieve themselves

of pressure through innovative exercises and reading. In this way employees are

taking the opportunity to enrich their spiritual and cultural lives while improving their

Case study: Setting up sports clubs to encourage employees to exercise and stay fit physical strength. These activities have been warmly received by staff members and are Yoga and meditationconducive to the company’s efforts to cultivate a harmonious environment.Haikou International Duty-Free Shopping Complex has established basketball badminton football and other sports clubs and it

regularly stages activities to encourage employees to be more physically active and create a healthy and positive environment for the

company.Basketball club Badminton club Football club

Staff assemble flower arrangements

7879

▼

▼▼▼

▼

▼

▼ ▼Green Wonderland

04 PlanetAddressing Climate Change to 82Protect the EnvironmentEmbracing Green Buildings to 88Fulfil the Green Building Philosophy

Green and Low-Carbon Operations 96

for a Better Life

CTG DUTY-FREE cares for the planet based on its business features and in light of environmental characteristics of its main business

locations. We are actively responding to UN SDGs 2 6 7 12 13 14 and 15 by engaging in multiple environmental protection initiatives

such as water resource management green an0d low-carbon operations green b4uildings and active responses to climate change.China Tourism Group Duty Free Corporation Limited * 2023 Environmental Social and Governance Report Planet

Addressing Climate Change to Protect the Environment Current scenario 1.5°C – Net-zero world scenario4 3°C – Hot house world scenario5

RCP 6.0

Climate change is having a broad and far-reaching impact on the world CTG DUTY-FREE is acting quickly to analyse the potential Physical risk output of risk exposure RCP 1.9

challenges that climate change may bring deploy mitigation and adaption measures and explore opportunities. This section describes based on 2021 benchmark IEA Stated Policies Scenarios IEA Net-Zero by 2050

our efforts and future plans for addressing climate change with reference to TCFD (Task Force on Climate-Related Financial Disclosures) (STEPS)

recommendations. NGFS Net-Zero 2050 NGFS NDC scenario Shared Socio-

SSP1 – Sustainability

▍Governance Economic Pathway – Fossil-fuelled

development

We have established an ESG governance structure which covers the all-round governance on ESG matters

including addressing climate change.Risk impact under

The Board of Directors of the company is the highest decision-making authority to address climate change and the Strategy and Physical risk Climate risk type Risk impact of current Risk impact under the 3°C – scenarioSustainability Committee of the Board of Directors is the committee assuming the primary responsibility. We established the ESG Leadership category scenario the 1.5°C – scenario (hereinafter “highGroup and it is headed by the Chairman of the company; the deputy head is the General Manager; and its members include heads emissions scenario”)

of departments. ESG governance structure strategy and the terms of reference of the Strategy and Sustainability Committee and the

ESG Leadership Group please refer to “Exercising Stronger Governance to Implement ESG Concepts”. The Strategy and Sustainability Extreme Extreme Extreme

Committee holds meeting once a year and the ESG Leadership Group holds regular meetings. By integrating ESG matters including Extreme heat high high high

responses to climate change with daily operations and management the concerned departments and subsidiaries perform their specificresponsibilities within their terms of reference. In addition the company has also set up a “Leadership Group on Carbon Peaking and Extreme cold Low Low LowCarbon Neutrality” please refer to “Green and Low-Carbon Operations for a Better Life”.We have made it clear that the Board of Directors has to incorporate climate considerations into its review and instructions on strategies Chronic risks Precipitation (heavy rain) High High High

important action plans risk management policies annual budgets and business plans its formulation of performance goals for organisations

its monitoring on implementation and its supervision on significant capital expenditure acquisitions and divestitures. The ESG Leadership Extreme snowfall Extreme Extreme Extreme low low low

Group and the “Leadership Group on Carbon Peaking and Carbon Neutrality” provide support for this.Extreme Extreme Extreme

We steadily carry out the current status reviews strategy formulation risk management and identification and tracking of metrics and Extreme wind low low low

targets for risks and opportunities arising from climate change that the company may be exposed to or can embrace.Coastal flooding High Medium Medium

▍Strategy

In view of the characteristics of the tourism retail industry and the company’s medium to long-term business planning we continue to focus Fluvial flooding Medium Medium Medium

on and monitor business operations and risk management to identify quantify and manage potential threats and uncertainties caused by

global climate change. We then analyse the potential impact of these risks on the company’s own operations and the entire industry chain Acute risks Typhoons Extreme Extreme Extreme high high high

from upstream to downstream processes with the aim of safeguarding the steady development of the business.We referred to the TCFD framework to identify the physical risks related to climate change (hereinafter “physical risks”) and the transition Wildfires High High High

risks related to low-carbon economic transformation (hereinafter “transition risks”). For physical risks we use a risk forecasting tool based

on climate change scenarios (provided by MSCI) to assess the potential business and financial impacts subject to the geographical location River low flow Extreme Extreme Extreme

of the company’s assets their exposure and their hazard patterns. On this basis we have developed systematic response strategies in site low low low

selection emergency management supply chain and inventory optimisation and online business development. We then integrated these

strategies into the company’s daily business management to enhance its organisational resilience.Subject to the assessment of the geographical location of the company’s assets exposure and severity the company’s overall business

Scenario analysis was exposed to extremely low to moderate risk under all climate scenarios including extreme cold extreme snowfall extreme wind fluvial

flooding and river low flow. We identified physical risks with high or higher risk levels such as extreme heat precipitation coastal flooding

typhoons and wildfires and further elaborated on the targeted description in terms of impact assessment impact cycle scope of impact

Based on the analysis of chronic and acute physical risks under different climate scenarios we comprehensively assess the potential impact potential financial impact strategies mitigation and adaptation measures and comprehensively analysed the related risks including direct

of physical risks on corporate strategy business operations and financial conditions under different scenarios. We then prioritise climate loss operation interruption customer loss and the impact of supply chain disruption on all links of the company’s business value chain. We

risks optimise resource allocation and improve risk management. actively promote the climate adaptability design of buildings creation for a more resilient supply chain online and offline business integration

and other measures improve the company’s ability to address climate risks enhance the durability and stability of business operations and

We selected the current scenario the relatively orderly pathway toward 1.5°C set by the Network for Greening the Financial System (NGFS) continue to provide customers with quality goods and services.(i.e. reaching net zero around 2050) alongside the climate scenario of 3°C Nationally Determined Contributions (NDCs) set by the NGFS

(i.e. global warming of 3°C scenario around 2050) for scenario analysis.

4 1.5-°C NGFS orderly “Net-Zero 2050” scenario: the adoption of the net zero emissions by 2050 scenario that is the global energy sector achieving net zero

CO2 emissions by 2050 is consistent with limiting the global temperature rise to 1.5°C with no temperature overshoot (with a 50% probability).

5 3-°C NGFS Nationally Determined Contributions “NDC” scenario: taking into consideration all pledged but not yet implemented policy measures. The

estimated physical risks would be slightly lower than in the Current Scenario case but still well above the Paris Agreement targets.

82 83China Tourism Group Duty Free Corporation Limited * 2023 Environmental Social and Governance Report Planet

Physical

Climate risk Impact Scope of Potential financial

risk Impact Assessment Strategies mitigation and adaptation measures

category cycle impact impact

category

High temperatures will increase demand for water supply and Extreme high temperatures may cause a Medium and Operation Increase in operating Follow green standards for the construction of new buildings from their design and

cooling in summer resulting in increased energy consumption very high risk to the company’s operations long-term expenses planning continue the energy-saving optimisation of existing facilities effectively reduce

and equipment maintenance costs. Extreme high temperatures in Hainan province the GBA and Cambodia. Upstream Increase in costs while saving energy and promote the use of clean energies.may lead to excessive power loads increase safety hazards such Under the high emissions scenario the investment

as short circuits and fires and have an adverse impact on normal number of operations with an extremely Decrease in Regularly check maintain and update in-store electrical circuit and facilities and formulate

operations brought by power supply tension or power failures. high risk will further increase for example operating income emergency plans to deal with power supply interruptions such as by installing standby

operations in Fujian province will also be power supply system to prevent sudden power failure.Extreme high temperatures may also af fect logist ics and exposed to extremely high risks.t ranspor ta t ion such as the s torage and d is t r ibut ion o f Rigorously monitor cold-chain logistics to guarantee the quality of temperature-sensitive

Extreme heat refrigerated goods or lead to traffic interruption in some areas This will be the most common climate risk products in hot weather strengthen inventory management and prepare goods in

affecting commodity supplies and passenger flow in tourist faced by the company. advance to deal with possible logistics delays.destinations. Continue to expand the online business integrate online and offline businesses and

maintain a good momentum of development to minimize the adverse impact of climate risk

Chronic on the company’s offline business operations.risks

Heavy p rec ip i t a t i on may l ead to road f l ood ing t r a f f i c Nearly half of the company’s operation sites Medium and Operation Increase in operating Geographical factors shall be fully considered when selecting sites for project development

i n t e r r u p t i o n o r p o t e n t i a l s a f e t y h a z a r d s a n d r e d u c e are exposed to a high or extremely high risk long-term expenses to avoid the severe impact of disasters on infrastructure.consumers’ willingness to go out and buy. In addition it may of precipitation especially certain operation Upstream Decrease in

also lead to instability of supply or delayed delivery posing sites located in the Yangtze River Delta Check waterproof facilities to ensure that the in-store waterproof facilities are effective Downstream operating income

challenges to inventory management and customer services. Chongqing city and Fujian province. and prepare necessary emergency supplies such as waterproof sandbags drainage

equipment emergency lighting etc.Continuous heavy rain may affect the sales of some seasonal

commodities such as outdoor products for summer. By optimising inventory management we can improve the inventory turnover rate while

maintaining adequate inventory to ensure the stability of the supply chain when the

Precipitation logistics and transportation is interrupted.Adjust marketing strategies launch targeted promotional activities and encourage

consumers to place orders online.Coastal f looding may cause seawater to f lood stores and Some operations of the company located Short Operation Increase in operating Flood levees shall be built around stores and the threshold shall be raised to reduce the

damage store facilities. Goods soaked in water may decay or in Hainan province the GBA the Yangtze medium and expenses possibility of seawater flooding. Sandbags waterproof baffles and other materials shall be

get damaged resulting in economic losses. Coastal flooding River Delta and the Bohai Rim region are long-term prepared for rapid deployment in case of floods.may cause delays or interruptions in port transportation and exposed to high or extremely high risks.logistics facil it ies which may affect the supply chain thus Develop a detailed emergency response plan including employee evacuation customer

affecting sales of goods. Coastal flooding may damage power evacuation goods transfer and other processes and conduct regular drills to ensure that

and communication infrastructure leading to power failures and employees are familiar with the emergency process.Coastal communication interruptions in stores affecting their normal By diversifying the supply chain we avoid heavy dependence on a single supply channel and

flooding operations. Muddy water pollutants and pathogens left over after improve the flexibility of the supply chain.floods may pose risks to the health of employees and customers.Adjust the inventory strategy avoid overstocking high-risk goods and take appropriate

moisture-proof and mold-resistant measures for goods that are vulnerable to floods.Typhoons may blow down trees or billboards causing damage Some operations of the company located in Short Operation Increase in operating Pay close attention to the forecast and early warning information follow the weather

to the external structure of duty-free stores and threatening the Hainan province Fujian province the GBA medium and expenses forecast and make timely adjustments to the store operating plan according to the

safety of these stores. Typhoons often bring heavy rainfall which and the Yangtze River Delta are exposed long-term Decrease in extreme weather forecast.Acute may lead to the flooding of roads and surrounding areas thus to a very high level of typhoon risk. Under operating income

risks affecting the safe access to stores of customers and employees the high emissions scenario the number of Strengthen the maintenance and inspection of the store structure and fix and reinforce it

and leading to business interruption. high-risk operations slightly increases. when necessary to ensure the structure is firm enough to withstand strong winds.Typhoons Typhoons may affect the logistics system leading to supply

Establish stable cooperation with suppliers to ensure timely replenishment of goods even

chain interruptions and delays in goods replenishment affecting when the supply chain is interrupted.store inventory and sales. Strengthen the safety training for employees to improve their awareness of and ability to

cope with typhoons.The actual losses caused by wildfires may increase additional costs Some operations in Hainan province Short Operation Increase in operating Establish a wildfire monitoring system to keep abreast of the fire development

of maintenance. The smoke and particles generated by wildfire Heilongjiang province Jilin province Anhui medium and expenses take preventive measures in advance to ensure the safety of employees and

will seriously affect the air quality resulting in reduced visibility and province are exposed to high risk. long-term Downstream Decrease in customers.posing a threat to the health of employees and that may affect the operating income

shopping experience of customers leading to reduced passenger

flow. Wildfires may lead to the blocked roads or traffic congestion

Wildfires making it difficult for customers and employees to access the duty-

free stores. If a wildfire spreads to the nearby airport or port it may

affect the supply chain and logistics of duty-free stores.

84 85China Tourism Group Duty Free Corporation Limited * 2023 Environmental Social and Governance Report Planet

Transition risk impact assessment and response: Climate opportunity impact assessment and response:

Potential Potential

Scope of Strategies mitigation and adaptation Impact Scope of

Risk category Description Impact cycle financial Area Description financial Strategies mitigation and adaptation measures

impact measures cycle impact

impact impact

The company is continuously monitoring We have adopted a green design philosophy for the initial design of our

the introduct ion and updat ing of Haikou International Duty-Free Shopping Complex and Sanya International

Nat iona l and loca l c l ima te - relevant policies and regulations and Duty-Free Shopping Complex. For example during the design process for

r e l a t e d p o l i c e s m a y b e we study implementation requirements the Sanya International Duty-Free Shopping Complex we have adopted a

tightened (such as the carbon as they are released and formulate number of green and energy-saving technologies to meet the standards for

p r i c e m e c h a n i s m s t r i c t e r relevant measures on time. Short fabricated buildings and the standards for fully furnished delivery. The smartcarbon emission compl iance The company is developing the “Work Build climate medium Decreaseand effective technical measures taken include the shape optimisation of the

requirements and information Increase in resilient and Operation in operating building envelope system integrated design of the daylighting and shading Medium and Plan for Implementing the Spirit of

disclosure requirements) which Operation system in the atrium and adoption of energy-efficient HVAC equipment

long-term operating President Xi Jinping’s Important Speech infrastructure expenses

may increase the company’s expenses The long- temperature humidity and air quality monitoring systems sponge cities on the Construction of an Ecological

Policy and legal management inputs and costs company’s term primary WSDs irrigation with reclaimed municipal wastewater soundproofing Civilisation and ‘Carbon Peaking and

risks and may put the company under operations

construction materials and smart system integration management etc.Carbon Neutrality’”. In addition we are

regulatory pressure without the steadfastly promoting the construction The construction of infrastructure with better climate resilience can help

timely improved compliance of of an ecological civilisation as we work defend against climate disasters make full use of natural resources and

management. to build a world-class green tourism efficiently save energy and reduce emissions.retailer and pursue high-quality green

development. Collaborate

with brand Short

Upstream Increase in As consumers prefer environmentally friendly green products we have partners to and

Given the synergistic effect of operating collaborated with brand partners to promote sustainable green products to promote medium-

information technology and energy Downstream income meet their consumption demands.green term

technology during our transition products

towards lower carbon and greener We continued to optimise our

operations the green innovative Products Integrate Short To better cater to consumer shopping habits we have continued to enhance

Short Increase digitalisation and informatisation Increase in

and in te l l igent management and services online and medium the integration of the on-line and off-line businesses to provide consumers

medium and Operation Downstream operating

requirements in supply chain in asset and actively built a green low- off-line and long- with more convenient integrated services covering on-line and off-line

long-term income

( i n c l u d i n g t r a n s p o r t a t i o n investment carbon and digital smart logistics businesses term channels.Technology risk a n d p a c k a g i n g l i n k s ) a n d and supply chain. We have adhered to the use of recyclable and biodegradable green

the operat ional maintenance packaging have proactively promoted the automatic and intelligent

requirements of online business Short Promote Decrease upgrading of packaging and have been committed to applying single-sheet

will increase our technology costs. and green logistics Upstream in operating receipts and slim tape into the logistics chain.medium-

& packaging expenses

term We have established a waste material recycling system to recycle packaging

A s c o n s u m e r s b e c o m e cartons wastepaper and other materials which helps extend the life cycle of

increasingly aware of lower-carbon packaging materials and improve the overall utilisation efficiency of resources.We have establ ished a smooth

alternatives and environmental

mechanism for communicat ion Compared with air transport ocean transport gives off less carbon emissions

protection they will opt for more Short Decrease

with consumers to understand their Optimise Medium Decrease and provides a higher efficiency in energy conservation and emissions

environmentally friendly products medium and Downstream in operating demands and preferences in a timely freight and long- Upstream in operating reductions. Therefore we have worked with brands to gradually increase the

which will reduce the demand for long-term income manner and meet their needs for Supply Chain transport term expenses proportion of sea transportation during the procurement and transportation

Market risk traditional products and present process.environmentally friendly products.re la ted market r i sks for our

partners and us. Short Promote the Decrease We have vigorously promoted the use of clean energy equipment and made

medium

use of new Upstream in operating full use of electric-powered forklift trucks to replace traditional fuelled ones

and long-

If the company fails to switch to energy tools expenses so as to reduce carbon emissions and environmental pollution.term

a low-carbon operation modein time it may have a negative We continued to convey “GreenShort Decreaseimpression on the company due to CTG DUTY-FREE” concept to the

medium and Downstream ▍Risk Management

consumers’ preference to spend in operating mass public through media channels

long-termon a greener and stable platform income to boost customer confidence. We have incorporated climate change risks into our overall risk management process. Please refer to “Complying with Commercial Ethics toaffecting brand reputation and Reinforce Internal Control Compliance” for the risk management process.market share.We regularly monitor the development trends of climate risk analyse the impact of risk on the company’s business operations supply chain

We have es tab l i shed a smoo th operating costs and revenue and take the initiative in developing mitigation and adaptation measures to improve the company’s resilience

mechanism for communication with and adaptability to potential climate uncertainty in the future.stakeholders and respond to their

Stakeholders are increasingly concerns in multiple ways.Reputation risk concerned about climate-related ▍Indicators and TargetsW e h a v e i n c o r p o r a t e d E S G

issues and we may suffer from

Short Increase in considerat ions into our businessreputation risk if we fail to meet Metrics related to climate change response include energy consumption and the resulting GHG emissions. Please refer to “Green and Low-medium and Operation operating operations via specific implementation stakeholder expectations or if Carbon Operations for a Better Life” for specific data during the reporting period. As for green buildings as of the end of the reporting period

long-term t a s k s t o c o n t i n u o u s l y i m p r o v e

we engage in any behaviour expenses the quality of the company’s ESG please refer to “Embracing Green Buildings to Fulfil the Green Building Philosophy”. Please refer to “Exercising Stronger Governance tothat violates relevant laws and d isc losure wh i le enhanc ing our Implement ESG Concepts” for relevant targets.regulations. communication with stakeholders via

regular release of ESG reports and In light of the evolving conditions of the company’s operating location and the market dynamics we will constantly review our practical

other methods to disclose our efforts activities and adjust our objectives and proposed measures in a timely manner. We will further improve our governance strategy formulation

and achievements. risk management identification and management of indicators and targets and work with all sectors of society to cope with climate change

and achieve common sustainable development.

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Embracing Green Buildings to Fulfil the Green Building Philosophy Green Planning

Based on the low-carbon technologies applied at Haikou International Duty-Free Shopping Complex’s project plots and with reference tolow-carbon experience gained through other commercial projects the company has prepared the “Low-Carbon Technology Guidelines forThe company is committed to implementing the Green Building Action Plan and actively promoting the development of green buildings. We CDFG’s Investment in Tourism Retail Complexes (Commercial Hotel and Office Complexes)” (hereinafter referred to as the “Low-Carbonare making extensive efforts to engage in resource conservation environmental protection and pollution reduction throughout the building Technology Guidelines”) which designed to help reduce the carbon emissions of buildings and promote energy efficiency. Going forward

life-cycle with a view to making our buildings efficient healthy and liveable while realising harmonious coexistence with nature. the company will refer to these guidelines when developing projects that involve the use of low-carbon technologies.The Sanya International Duty-Free Shopping Complex Phase 1 Plot 2 Commercial Project has adhered to the philosophy of resource

▍Setting an Example with Our Own Conduct conservation and environmental protection since its planning and design stage with a focus on constructing high-quality green buildings

that support sustainable development with reference to domestic and international green building standards. During the Project’s design

To put into practice the low-carbon development philosophy promote the high-quality development of green buildings and work towards stage a number of green and energy-saving technologies were adopted that meet the standards for fabricated buildings and the standards for fully-furnished delivery. The smart and effective technical measures taken include optimising the shape of the building envelope system

the dual carbon goals (the carbon peaking and carbon neutrality goals) the company strictly implements energy-saving standards for newly integrating the design of the lighting and shading system in the atrium and adopting energy-efficient heating ventilation and air conditioning

constructed buildings. It has also formulated the “White Paper on Low-Carbon Planning for Construction Projects” in order to integrate the (HVAC) equipment temperature humidity and air quality monitoring systems the concept of sponge cities primary wearable sensing

concept of sustainable development into every link of the design construction and operation of buildings and ensure the quality of green devices (WSDs) irrigation with reclaimed municipal wastewater soundproofed construction materials and smart system integration

buildings throughout their life cycle. management. With these measures the Project was able to satisfy the 2-star Green Building standards in the five areas of safety and

durability health and comfortableness convenience resource conservation and friendly living spaces. Through the application of these

So far the application of green building certifications of certain key projects have been summarised below: technologies the Project met international standards for sustainable site selection indoor and outdoor water efficiency energy consumption

reduction waste management and indoor environmental quality among other areas. The Project has obtained 2-star Green Building pre-

certification.Haikou International Duty-Free Haikou International Duty-Free Haikou International Duty-Free Shopping The design of the Sanya International Duty-Free Shopping Complex Phase 3 Project adopts a number of energy-saving green technologies

Shopping Complex (Block No.1) Shopping Complex (Block No.5) Complex (Block No.4 and No.6) such as a photovoltaic pool roof a sunken green plaza design a waterscape recycling system solar photothermal technology a special

acoustic design a fresh air filtration system low-volatility coatings environmentally-friendly refrigerants a high-performance and multi-split

2-star Green Building pre-certification LEED Gold certification Plan to apply for 2-star Green variable frequency system and fresh-air heat recovery technology. In addition to these energy conservation technologies the Project also

Building certification boasts an optimised structural design and it has adopted a series of smart and efficient measures such as energy-efficient equipment

green energy-saving building materials resource recycling and renewable resource use (the “four innovative technologies”) as well as smart

system integration management with a view to comprehensively promoting carbon reduction at the source.Sanya International Duty-Free Sanya International Duty-Free

Shopping Complex Phase 1 Plot 2 Sanya International Duty-Free Shopping Complex Phase 1 Plot 2

Commercial Project Shopping Complex Zone C Hotel Project

2-star Green Building pre-certification LEED Gold certification Plans to apply for 2-star Green

Building certification

Sanya International Duty-

BIM has been adopted in the design and construction process

Free Shopping Complex

and the project will feature prefabricated buildings and fine

Phase 3

decorations. Various intelligent high efficiency and energy-saving

Plans to apply for 2-star capabilities such as building shape optimisation building space

Green Building LEED utilisation building insulation materials natural lighting design

Platinum LEED Zero Energy sponge cities rainwater recycling garbage classification charging

WELL Platinum and SITE piles solar energy smart lighting convenient automated payment

Platinum certifications and smart parking will be adopted to reduce the buildings’ energy

consumption and ensure compliance with low-carbon standards.

88 89China Tourism Group Duty Free Corporation Limited * 2023 Environmental Social and Governance Report Planet

Carbon Footprint Management techniques tool stereotyping bare soil coverage for dust suppression water-sprinkling devices on the

site to control dust recovery and comprehensive utilisation of construction waste reducing resource

consumption and environmental pollution throughout all stages of construction process to protect the

Buildings play a vital role in energy conservation and carbon reduction. The company is committed to assuming its corporate social natural surroundings to the largest extent. Regarding disposal waste generated during the constructionresponsibility and it strives to meet the goals of carbon peaking and carbon neutrality. To this end we are following the “Action Plan for process is classified and recycled as required and then shipped to enterprises with processingCarbon Peaking and Carbon Neutrality” and we plan to prioritise carbon emissions accounting as part of our effort to identify the company’s qualifications to be recast and used for producing new building materials to save natural resources.carbon footprint. We are also exploring new carbon reduction solutions that harness technological breakthroughs and innovations with the

goal of optimising our energy structure and using more clean energy. We fully leverage the market’s role in resource allocation and actively The Sanya International Duty-Free Shopping Complex Project takes advantage of energy-efficient processes

participate in carbon trading to reduce costs related to carbon reduction. and construction techniques to reduce particulate and waste discharge at construction sites. During the

construction process six types of high-quality innovative building materials (i.e. light-transmitting insulating

Under the direction of the “Low-Carbon Technology Guidelines” the company incorporates glass expanded perlite concrete environmentally friendly latex paint low-loss transformers variable

green building materials as much as possible during project construction. Suppliers of equipment frequency fans and water pump equipment) were used for energy-saving and environmental protection

and materials (such as cables air conditioners refrigerators diesel generators domestic water purposes.supply pumps air conditioning chilled water pumps oil separators etc.) for Sanya International

Duty-Free Shopping Complex Phase 1 Plot 2 projects are all required to obtain the Certificate During the reporting period a commissioning plan for the Sanya International Duty-Free Shopping Complex

for Environmental Management System Certification and among which cables already obtained Phase 1 Plot 2 Commercial Project was formulated. Under this plan the lighting system HVAC system and

carbon footprint assessment report. Props suppliers for Haikou International Duty-Free Shopping fire-fighting system were put into trial operation to ensure that the electromechanical systems performed in

Complex Sanya International Duty-Free Shopping Complex and various airport comprehensive accordance with green design standards and to ensure that the design construction and operation of theduty-free stores are also required to obtain environmental green certifications such as “Certificate systems were efficient and safe.for Certification of China Environmental Labelling Product” “Environmental Management SystemCertification” “ISO14001” and “FSC Certification” etc. Green and Energy-Saving Operations

The Haikou International Duty-Free Shopping Complex Plot 5 Project actively promotes the

application of new technologies and in March 2023 won the Certificate for the Second Rank Sanya International Duty-Free Shopping Complex Project

Achievement in Green Construction issued by the China Construction Industry Association for its

construction process control efforts. Based on the operational data of Sanya International Duty-Free Shopping Complex Phase 1 and Phase 2 Phase 1 has reduced energy use by

more than 15% and Phase 2 has reduced energy use by more than 18%.In addition the company aims to build a low-carbon eco-tourism destination and focuses on the four core functions of tourism culture

social life and daily living and emphasises low-carbon and ecological construction principles. By steadily engaging in scene innovation Aspect Low Carbon & Environmental Protection Measures

technology innovation and content innovation we aim to build a low carbon ecological tourism destination that integrates intelligent

experiences with technology-empowered living designed scenarios and cultural and tourist activities.The building’s energy-efficient design complies with national standards. The design of the building’s shape orientation

the distance between buildings and window-to-wall ratio among other aspects were optimised to reduce overall energy

Green Construction Management consumption.Double silver LOW-E coloured glazed hollow glass roofing was adopted in Phase 1 and some glass facades have been

The company also implements green and low-carbon standards during construction processes to strengthen its green building credentials. treated with reflective film.The “four conservations and one protection” principles (energy conservation land conservation water conservation material conservation In Phase 2 the shading design covers about 70% of the entire site’s metal decorative roof which prevents temperature

and environmental protection) are applied throughout the whole process from planning development design and construction though to increases from indoor sun exposure and reduces the energy consumed by air conditioners.operations for properties and commercial complex projects invested in and constructed by the company. Measures are taken to ensure safe Energy Intelligent elevator management: The escalators’ intelligent speed monitoring capabilities and the elevator group control system reduce power consumption.construction sites a clean environment on time delivery and sufficient funds. Construction units are required to prepare comprehensive consumption Intelligent fresh air control system: Fresh air is circulated into the buildings during transition seasons. Minimum fresh air

special schemes on green construction beginning at the design stage and establish effective support systems to ensure that green volumes are used to operate the system when the outdoor temperature is higher than the indoor temperature in summer.construction is fulfilled as scheduled. The building’s intelligent lighting considers the time of the day and scenarios to reduce electricity and energy consumption.During the construction process the company adopts the following management measures to reduce the impact on the environment and The building has been outfitted with a variety of intelligent control systems including intelligent office capabilities energy

natural resources: efficiency capabilities intelligent lighting intelligent monitoring access control systems and vehicle management systems.Adopting rainwater storage system and permeable pavement in the building’s “sponge city”: The permeable pavement has

01 03 been used to efficiently penetrate ground rainwater which reduces pressure on the drainage system and maintain the urban Water and soil’s ecological balance.

Adoption of an environment- Plastic material management of avoiding the use soil resources Sewage and wastewater classification treatment: Sewage is discharged into the municipal network after being treated by the

friendly architectural design of one-off plastic products. If plastic materials are outdoor septic tank and kitchen sewage is discharged into the municipal network after being treated by oil separators twice.Phase 2 also equipped with a river revetment and plant maintenance capabilities which enable the building to meet floodwater

and re la ted mater ia ls to unavoidable choose recyclable and biodegradable discharge requirements thereby ensuring a stable riverside and preventing water and soil erosion.reduce any negative impact ones and fully recycle and reuse them by reducing To save water consumed by fountains we perform disinfection and algae-killing treatments on fountain water on a regular

on the environment. damage and waste. Plastic waste resulting from basis and remove and recycle sediment at the bottom of the pool by sewage suction pump to extend the fountain water

construction is collected and disposed of by its type to replacement cycle and lower the frequency of water change helping us save over 5000 tonnes of water in 2023 compared to

the previous year.

02 avoid environmental pollution.

04 Clean air The high-efficiency oil fume purifier has been designed to the highest emission standard of 1.0mg/m3 which is stricter than A preference for reusable the national standard for environmental protection and emissions in China. These measures effectively improve the park’s

materials and equipment Implementation of environmental protection publicity air quality.such as stainless steel glass and education to enhance the public’s awareness and The building layout distance between buildings and ventilation placement have been optimised to improve on-site air

products etc. knowledge of environmental protection. circulation.Phase 2 is equipped with an intelligent garage ventilation system. The induced ventilation system in the underground garage

automatically controls the operation of the garage fan according to the carbon monoxide concentration which improves air

We have formulated green construction plans for the Sanya International Duty-Free Shopping Complex Phase 1 Plot 2 Commercial quality in the garage.Project Haikou International Duty-Free Shopping Complex and others respectively. These plans include site environmental protection

comprehensive utilisation of materials and resources energy conservation and comprehensive utilisation of energy water conservation

and comprehensive utilisation of water resources land conservation and construction land protection construction waste management Noise Noise and vibration control: Fans pumps and other equipment emit low noise and shock absorption devices have been deployed in relevant locations on the

noise pollution control light pollution control indoor environmental pollution control and other measures. Multiple green technologies and management premises.measures have been adopted for these Projects such as the primary use of local and recycled building materials advanced construction

90 91China Tourism Group Duty Free Corporation Limited * 2023 Environmental Social and Governance Report Planet

Haikou International Duty-Free Shopping Complex Project ▍Delivering a Green Message to Partners

The company carries out green cooperation with brands by introducing green designs for store and counter decorations and using

environmentally friendly materials for booth construction. It also assists brands in applying for LEED certifications so as to integrate fashion

Reducing the heat High efficiency water- Rainwater recycling Energy efficiency optimisation with environmental protection and engage more social forces towards green operations.island effect saving appliances

The project reduces ground The project uses all Grade All on-site rainwater will A comprehensive energy consumption simulation has been

parking spaces uses l ight- I sanitary ware to achieve be co l lec ted t rea ted conducted based on the design of the project envelope and the

coloured paving materials and h i g h - e f f i c i e n c y w a t e r and reused for greening HVAC system the equipment’s energy efficiency and the indoor By the end of 2023 the company had a total of 18 stores/counters had received LEED certification of which 16 stores/

uses light-coloured materials savings and the cooling irrigation and road washing lighting power density. According to the simulation’s calculations

or highly reflective coatings for tower’s water f low rate to save fresh water. the designed building will reduce costs by 16.3% annually

roofing materials as much as meets LEED requirements. compared to the ASHRAE benchmark building. counters had received LEED Gold certification and 2 stores/counters had received LEED Silver certification.possible.High efficiency air treatment Enhanced commissioning Full life cycle assessment

The project adopts G4+F8 medium- and high- In addition to basic commissioning the The project has conducted a full life cycle

efficiency filtration devices to guarantee indoor air project will also ensure that an efficient assessment (LCA) of the new building

quality. In addition to basic ventilation the volume of operational strategy is maintained for the to calculate the percentage reduction in

fresh air will be increased by 30% to avoid insufficient energy consumption system and that timely various environmental impact indicators

fresh air when there are many people in the building. support is provided for operations through of the new building compared to the

functional testing and problem documentation benchmark building.of HVAC the HVAC control system and the

lighting system.Through preliminary and enhanced commissioning we conducted a comprehensive performance verification on building data HVAC In December 2021 In March 2022 In April 2022

systems lighting and natural lighting systems internal domestic water and electricity systems and renewable energy systems to ensure

design standards in these systems. In addition we also took intelligent property service measures such as centralised control of building the Armani Beauty counter the YSL Beauté counter at the Lanc?me counter at

information & building equipment and regular maintenance to always ensure safe and efficient operations and the satisfaction of operation at Sanya International Duty- Sanya International Duty- Sanya International Duty-

standards for green buildings. Free Shopping Complex Free Shopping Complex Free Shopping Complex

Preserving Biodiversity received LEED Gold received LEED Gold received LEED Gold

certification certification certification

In January 2023 the Ministry of Ecology and Environment released China National Biodiversity Conservation Strategy and Action Plan (2023-

2030) which defines China’s biodiversity conservation strategy in the new era. The company concerns about and protects biodiversity with

action. We actively leverage our advantages to engage more people to the cause of biodiversity protection.In January 2022 In April 2022 In September 2022

T h e C o m p a n y t a k e s b i o d i v e r s i t y B a c k f i l l s t o p s o i l d u g o u t P r e f e r s l o c a l p l a n t s f o r

conservation into consideration in the the Cartier shop at Sanya the Kiehl’s store at Sanya

the De Beers shop at

during the development and landscap ing to reduce the Sanya International Duty-

development and construction of the project International Duty-Free International Duty-Free

and takes the following main measures to c o n s t r u c t i o n p r o c e s s a s impact on the environment and Shopping Complex Shopping Complex Free Shopping Complex

minimise the impact of its operations on environmental compensation. ecology. received LEED Gold received LEED Gold received LEED Gold

biodiversity certification certification certification

For example Sanya is located within a tropical marine and monsoon climate zone with high temperatures and a relatively high humidity

all the year round. This makes it home to diversified biological species and helps with the shaping of its healthy benign and sustainable

ecosystem. During the development and construction of the Sanya International Duty-Free Shopping Complex Project we paid attention to

the protection of the surrounding ecological environment and biodiversity and adopted various green construction technical measures to

minimise the impact of the Project on the ecological environment and biodiversity such as enclosure noise control dust control etc..Case study: Holding a photo exhibition with a Belgian artist for endangered species protection

Ha i kou I n t e rna t i ona l Du t y -F ree

Shopping Complex joined hands with a

Belgian artist to hold a photo exhibition

called “Gravity Carnival” which included

avant-garde art installations highlighting

the conservation of endangered Hainan

gibbons calling for wider concern about

this endangered species.A photo exhibition at Haikou International Duty-Free Shopping Complex

9293

▼China Tourism Group Duty Free Corporation Limited * 2023 Environmental Social and Governance Report Planet

In October 2022 In March 2023 In March 2023 In April 2023 In July 2023 In May 2022

the Balenciaga shop at the Cartier shop at the Kiehl’s shop at Haikou the De Beers shop at the Cartier shop at Haikou the Van Cleef & Arpels shop

Sanya International Duty- Haikou Meilan Airport International Duty-Free Haikou International Duty- International Duty-Free at Sanya International Duty-

Free Shopping Complex Duty-Free Shop Shopping Complex Free Shopping Complex Shopping Complex Free Shopping Complex

received LEED Gold received LEED Gold received LEED Gold received LEED Gold received LEED Gold received LEED Sliver

certification certification certification certification certification certification

In January 2023 In March 2023 In March 2023 In June 2023 In July 2023 In July 2023

the Lanc?me shop at the Helena Rubinstein shop the YSL Beauté shop at the Balenciaga shop at the YSL shop at Haikou the Van Cleef & Arpels shop

Haikou International Duty- at Haikou International Duty- Haikou International Duty- Haikou International Duty- International Duty-Free at Haikou International Duty-

Free Shopping Complex Free Shopping Complex Free Shopping Complex Free Shopping Complex Shopping Complex Free Shopping Complex

received LEED Gold received LEED Gold received LEED Gold received LEED Gold received LEED Gold received LEED Sliver

certification certification certification certification certification certification

94 95China Tourism Group Duty Free Corporation Limited * 2023 Environmental Social and Governance Report Planet

Green and Low-Carbon Operations for a Better Life Detailed measures include:

T h e t e m p e r a t u r e o f a i r c o n d i t i o n e r s i n o f f i c e s Develop good habits and turn off the faucet after water use to prevent water running to waste.▍Green Office and Low-Carbon Lifestyle and dorm i to r i es sha l l be no lower than 26 °C in

Report spills drips and leaks to the Engineering and Property Management Department in a timely

s u m m e r s h a l l b e t u r n e d o f f 2 0 m i n u t e s b e f o r e manner for repair.leav ing and shal l be powered of f i f le f t unattended

In accordance with the Environmental Protection Law the Law on Prevention and Control of Atmospheric Pollution the Law on Prevention for a per iod of t ime.and Control of Water Pollution the Law on Prevention and Control of Environmental Pollution Caused by Solid Wastes the Energy Pr in ters computers fans water heaters l ight ing Saving

Conservation Law of the People’s Republic of China and other Chinese laws and regulations as well as the Measures for the Supervision Watera n d o t h e r p o w e r s u p p l i e s s h a l l b e t u r n e d o f f

and Administration of Energy Conservation and Ecological Environmental Protection at Chinese Central State-owned Enterprises the before leav ing the p lace of work (and be shi f ted to

company has formulated the “Administrative Measures on Energy Conservation and Ecological Environmental Protection” which stipulates standby mode dur ing non-of f ice hours) . We strictly implement the Measures on Administration

the strict control of pollutant discharges and the prohibition of the arbitrary discarding stockpiling and dumping of solid waste as a move to Before store opening for sa les no l ights more than of Fuel Cards and Vehicles and resolutely prohibit the

avoid environmental pollution. those required for work rout ines shal l be switched misuse of company vehicles and excessive refuelling.on; e lectr ic i ty equipment to meet operat ing needs

In 2023 the company had no cases where it acted against the laws and regulations on energy conservation and environmental protection shal l on ly be turned on 10 minutes before opening;

a l l e lectr ic i ty equipment and l ights shal l be turned

nor any cases where it was punished or criticised by environmental protection authorities. Saving Office of f af ter the c losure. Supplies

We have establ ished sound e lectr ic i ty conservat ion

Green Office and Low-Carbon Operations m a n a g e m e n t s y s t e m s a n d e q u i p m e n t o p e r a t i o n

procedures to reduce unnecessary of f ice e lectr ic i ty We promote a paperless office.We are focused on implementing the “carbon peaking and carbon neutrality” goals to promote our all-round energy-saving and equipment and non-of f ice e lectr ic i ty consumpt ion.environmental protection initiatives. We also actively build upon our management methods and strengthen our green operations and W e h a v e i n s t a l l e d i n d u c t i o n w a t e r f a u c e t s i n We adopt an office supplies procurement system to bring about online integrated procurement. This

management capabilities as part of our continuous efforts to promote energy utilisation efficiency and improve the energy conservation and restrooms for water sav ing purposes. system helps centrally control procurement quantities and amounts so as to improve procurement

utilisation of our commercial complexes and duty-free stores. efficiency cut expenses and reduce waste.Duty-free complexes are equipped with an IOC smart 1 We actively promote the application of energy-saving

building integrated management platform which supports 2 equipment by installing energy-saving lighting air Case study: The company takes multiple measures to save energy and reduce consumption

real time quantitative analysis of energy consumption conditioners fans and other equipment in all duty-free

data and indicators and identif ication of energy complexes and stores while eliminating equipment with

consumption abnormalities to explore more energy- high energy consumption installing time control switches Virtualisation and cloud computing: We use virtualisation technology to virtualise servers and storage devices

saving opportunities and reduce energy consumption and imposing strict limits on usage. We also maintain air improving the utilisation efficiency of hardware resources and reducing their energy consumption levels. We have also

costs. conditioning systems on a regular basis to improve their migrated part of the workload onto cloud platforms to share resources and for better scalability while avoiding energy

energy efficiency. wastage caused by excessive equipment procurement.We focus on improving the management of energy

conservation and green operations by controlling energy 3

4 We fully promote garbage classification. For example and water consumption across all duty-free complexes Sanya International Duty-Free Shopping Complex Haikou Green data centre construction: We have optimised the design and operation of data centres to reduce their

and stores according to the optimal operating strategy. energy consumption through the adoption of efficient servers energy-saving air-conditioning systems in computer International Duty-Free Shopping Complex are equipped rooms and green cooling technologies. We also use renewable energy such as solar and wind energy to power

We also formulate classified management systems and with independent domestic garbage rooms and kitchen data centres and reduce carbon emissions.operating plans for equipment and facilities based on waste refrigerators to facilitate garbage classification.their actual conditions define red lines for daily energy Caterers in these shopping malls are also required

consumption and carry out regular maintenance and to classify kitchen garbage in strict accordance with Remote working and video conferencing: We promote remote working and video conferences to reduce

statistical analysis on energy consuming equipment and relevant regulations with cleaning staff arranged to guide commuting time and business travel for our people leading to a reduction in energy consumption and carbon

facilities as a means of reducing energy consumption. emissions. With informatisation tools and platforms remote collaboration and communication between staff can be customers on domestic garbage classification. We have achieved that improves work efficiency and saves energy.also signed waste recycling agreements and garbage

We put green philosophy into practice by creating a disposal agreements with qualified professional thirdfavourable atmosphere for “anyone to make savings in 5 parties to ensure recycling and the safe disposal of solid Data optimisation and compression: We reduce the energy required for data storage and transmission through dataany scenario at any time”. For example we organised wastes. compression and optimisation. Data compression algorithms de-duplication and compression technologies are used

subsidiaries to learn and implement the spirit of President to reduce the demand for and energy consumed by storage devices.

6 The company has issued the “Administrative Measures Xi Jinping’s important speeches and instructions and on Energy Conservation and Ecological Environmentalhis comments on carbon peaking and carbon neutrality Protection” and the “Action Plan for Carbon Peakingas part of our continuing efforts to further promote the and Carbon Neutrality” and has set up the “Energytransformation to green and low-carbon development. Conservation and Environmental Protection Leadership Reducing Our Impact on the Environment and Natural Resources

We released the “Green and Low-Carbon Proposals” to Group” and the “Carbon Peaking and Carbon Neutralityencourage employees to lead the way in carrying out low- Leadership Group” led by heads of the company. These To reduce the significant impact of our activities on the environment and natural resources and promote resource recycling we have

carbon and energy-saving practices and in conveying have put forward management requirements regarding constructed green buildings and launched sustainable concept stores actively applying prefabricated buildings and recyclable materials to

green messages. Other measures include putting up procurement production & operations green buildings reduce carbon emissions during the construction process.signs around offices to remind employees to turn off the green logistics the promotion of green consumption and

lights and save water and organising publicity campaigns the implementation of a green office and a low-carbon The company has signed “Responsibility Letters for Achieving Safety Production Energy Conservation and Environmental Protection Goals”

and training sessions on energy conservation and lifestyle. The company has also improved the rewards (the “Letters”) with all departments and subsidiaries to resolutely reduce and prevent potential contamination during the construction

environmental protection. and punishment mechanism for energy conservation and production and operating process.environmental protection and organised the publicity

implementation training and assessment of various

systems and action plans so as to solidly promote the

systematisation institutionalisation and standardisation of

96 energy conservation and environmental protection work. 97

Saving

Gasoline

Saving

Electricity

G r e e n O f f i c e a n d L o w - C a r b o n O p e r a t i o n sChina Tourism Group Duty Free Corporation Limited * 2023 Environmental Social and Governance Report Planet

Emissions Management ▍Saving Food to Reduce Food Waste

The company’s categories of emissions include greenhouse gas (GHG) emissions exhaust gases wastewater and solid waste. In terms The company complies with the Anti-Food Waste Law and implements the spirit of President Xi Jinping’s important instructions and

of emissions management the company attaches importance to controlling exhaust gases and GHG emissions and takes up emissions comments on “firmly combating extravagancy on foods” as well as the important requirements of the 20th National Congress of the

reduction measures to improve air quality. For wastewater and soil management the company is committed to protecting water and

soil resources in accordance with relevant standards by taking appropriate treatment measures to meet the requirements for discharged Chinese Communist Party on “advocating frugality and thrift in the whole society”. We improve our employees’ awareness of saving food by

wastewater. taking actions during daily meals in staff canteens.For solid waste management the company is strongly against dumping stacking and discharge of waste without permission and performs Detailed actions include:

its duties in terms of source reduction and classification of solid waste as required by law. It has established compliant waste storage

processes and works with qualified third parties for waste disposal under the laws and regulations to prevent environment contamination. As

for pollutant emissions it has established standardised pre-treatment facilities such as sedimentation tanks septic tanks and oil separators

which are subject to regular inspection and maintenance to ensure the compliant emissions. The company also handles cartons and other

recyclable waste on a regular basis.Put up posters Serve rice and soup Set up a tableware

Case study: Taking innovative measures to reduce waste at the source advocating reducing in a buffet form to recycling desk to

leftover food such encourage staff discourage food waste

In 2023 the company launched a “Paperless Vouching” system which supports online voucher submission by vouching clerks and as “Clear Your Plate” to only take the and supervise the

online operations by the financial department to realise a paperless transaction process. The system helps greatly reduce paper usage in the eye-catching amount they need; effective classification

while improving work efficiency and data accuracy. The company has also set waste reduction goals promoting paperless vouching and areas of canteens; Prepare food in of leftover food.other sustainable initiatives to reduce waste generation and environmental impacts. We will continue to promote innovative initiatives batches based on the Offer mixed

such as electronic document management to achieve more ambitious waste reduction goals. number of staff to be coarse-grains to served as reported by enrich food variety

each department and and reduce waste;

Energy Consumption and Greenhouse Gas Emissions offer smaller servings

to prevent waste;

The company mainly consumes electricity natural gas diesel gasoline and water during its daily operations. Our energy consumption

resource usage greenhouse gas emission and intensity6 in 2023 are shown in the table below:

The company encourages good dining habits by promoting saving at the source

Type 2023 Unit and implementing publicity and supervision activities. In November 2023 we heldthe “Serving the People by Solving Their Practical Problems – Catering ServiceElectricity 74773.52 kWh Improvement Seminar” inviting staff to interact with catering service providers.During their on-site interactions 10 suggestions were put forward to further

Natural Gas 326352 m3 improve catering services and reduce waste at the source.Diesel 145046 Litre Sunrise Shanghai has established a dedicated team to save food and combat food

waste behaviours. The team helps improve diners’ food waste awareness through

Gasoline 203336 Litre publicity activities and by equipping canteens with dedicated staff to encourage

good dining behaviours.Comprehensive energy consumption 10026.57 tce

Comprehensive energy intensity 0.0177 tce/m2 ▍Green Transportation with Lower Emissions

Direct greenhouse gas emissions (Scope 1 emissions)7 2056 tCO2e The national Development Plan for Comprehensive Transport Services during the 14th Five-year Plan Period specifies accelerating the

construction of a clean and low-carbon green transportation system by encouraging enterprises to adopt integrated efficient green and

Indirect greenhouse gas emissions (Scope 2 emissions)8 22576 tCO2e low-carbon freight and logistics systems. The company acts as a role model in the building of a green transportation system.Total greenhouse gas emissions 24632 tCO e We have vigorously promoted the use of clean energy equipment and made full use of electric powered forklift trucks to replace traditional 2

fuelled ones to reduce carbon emission and environmental pollution at the end of the reporting period the proportion of electric forklifts in

Greenhouse gas emissions intensity 0.04 tCO e/m2 the company had reached 100%.2

The company makes continuous efforts to build an advanced and appropriate warehousing system by combining warehouses scattered

Water consumption 391373.54 m3 across key areas to form an integrated warehouse distribution centre and by leveraging big data and intelligent route optimisation algorithm

technology to coordinate transportation routes with improved logistics efficiency for duty-free goods by sea land and air. Such measures

Water consumption intensity 0.69 m3/m2 help maximise carrying capacity thereby reducing the number of trips needed the amount of energy consumed and carbon emissions

throughout the transportation process. For long-distance transportation the company opts to ship by sea with relatively low carbon

6 The statistic scopt of natural gas electricity diesel gasoline includes the Haikou International Duty-Free Shopping Complex Sanya International Duty-Free emissions per unit where possible. For short-distance land transportation the company strictly regulates the use of vehicles to ensure that

Shopping Complex Sunrise Shanghai and Sunrise China which have already covered the majority of the company’s operating area and revenue. they meet the standards for emissions in their operation regions.

7 Direct GHG emissions: The company’s gasoline and natural gas consumption multiplied by the corresponding emission factors which are determined with We are well aware of the synergistic effect of the supply chain and have collaborated with brands to optimise freight modes gradually

reference to * China Energy Statistical Yearbook * IPCC 2006. increase the proportion of ocean transportation in the procurement process. Our company has also continued to strengthen communication

8 Indirect GHG emissions: The company’s purchased electricity consumption multiplied by the corresponding emission factor which are determined with and exchanges with suppliers and relevant authorities in Hainan province to expand the number of categories and products shipped by sea

reference to the Notice on Reporting and Verification Greenhouse Gas Emissions of Enterprises in Certain Key Industries from 2023 to 2025 issued by the to reduce carbon emissions further. Our efforts in this area have received massive attention and support from many brands supplier groups

Ministry of Ecology and Environment of China. in the industry.

98 99China Tourism Group Duty Free Corporation Limited * 2023 Environmental Social and Governance Report Appendix

With the goal of raising transportation Appendix

e f f i c i e n c y a n d r e d u c i n g e n e r g y

c o n s u m p t i o n i n i t s t r a n s p o r t a t i o n

processes to facilitate the construction Glossary of Terms

of a green transportation system and

we have obtained the TAPA9 and WCA10 Term Definition Term Definition

certifications.CTG DUTY-FREE refers to China Tourism Group Duty Free Corporation Offshore duty-free refers to The tax preference policy is to implement

Certificate of Membership by Transported Certificate of Membership by World the company our Limited together with its affiliated companies policy import duty-free shopping with limited

Asset Protection Association (TAPA) Cargo Alliance (WCA) company we value limited quantity and limited variety

ESG Report the refers to The Environmental Social and Governance for passengers leaving the island by plane

Report Report train or ship (excluding departures) make

▍Green Packaging to Deliver a Green Message payment in duty-free shops or approved

The reporting refers to From 1 January 2022 to 31 December 2022 online sales windows where the tax-free

The company is a travel retailer with an extensive operations network and well understands its responsibility for the promotion of green period the current policy is implemented and pick up goods

consumption patterns. To this end the company is committed to using influential activities to encourage consumers to adopt low-carbon year from the island at designated areas of

lifestyles. China Tourism refers to China Tourism Group Co. Ltd. airports railway stations and ports. The tax

exemption policies for the island include

The company adheres to the philosophy of “responsible packaging” and carries out green packaging actions: Group customs duty import VAT and consumption

CTS Holdings refers to China Travel Service (Holdings) Hong Kong tax

In response to the national “plastic restriction” policies. In recent years the company’s stores in Limited SASAC refers to The State-owned Assets Supervision and

Hainan and its duty-free stores in major airports all provide paper shopping bags for free other packaging CDF Investment refers to CDF Investment Development Co. Ltd. Administration Commission of the State

01 bags are made of biodegradable materials as required by environmental protection regulations. In Hainan Development Council

province more than 25.78 million shopping bags that meet environmental protection requirements have Sanya Downtown refers to China Duty Free Group Sanya Downtown CSRC refers to China Securities Regulatory Commission

been provided effectively reducing the generation of non-degradable plastic waste. Duty-Free Store Duty Free Store Co. Ltd. SSE refers to Shanghai Stock Exchange

Sunrise China refers to Sunrise Duty Free (China) Co. Ltd.Adhere to the use of recyclable and degradable green packaging. Packaging bags used by the HKEx refers to The Stock Exchange of Hong Kong LimitedSunrise Shanghai refers to Sunrise Duty Free (Shanghai) Co. Ltd.

02 company’s stores in Hainan are all made of biodegradable and environmentally friendly materials. Cartons Company Law refers to The Company Law of the People’s Republic and gas columns used as filling materials for e-commerce operations by CDF International are all made Hainan DF refers to Hainan Provincial Duty Free Co. Ltd. of China

from recyclable materials. CDF International refers to China Duty Free International Limited Securities Law refers to The Securities Law of the People’s Republic

CDFG (Cambodia) refers to China Duty Free Group (Cambodia) Co. Ltd. of China

Reduce the packaging materials used. To avoid resource waste and excessive packaging suppliers Limited Anti-money refers to The Anti-money Laundering Law of the

are required by the company to deliver their goods directly to its destination skipping any unpacking and Guangzhou refers to Guangzhou Xinmian Duty Free Merchandise Laundering Law People’s Republic of China

green packaging 03 repacking procedures needed during transportation. Our duty-free stores use sealing bags that meet Xinmian Co. Ltd. Anti-Unfair refers to Anti-Unfair Competition Law of the People’s

international standards by strictly following the duty-free packaging requirements of International Aviation.CDFCS refers to China Duty Free Cruise Services Limited Competition Law Republic of Chinaactions

We also try to put all goods into one shopping bag of an appropriate size to make it easy for customers Advertising Law refers to The Advertising Law of the People’s Republic

to carry around practicing the principles of environmental protection and resource conservation. Dalian cdf refers to Dalian Port China Duty Free Merchandise

Co. Ltd. of China

Establish a materials recovery system. The company has also established a system to recycle waste Hangzhou cdf refers to CDFG Hangzhou Duty Free Merchandise Cybersecurity refers to The Cybersecurity Law of the People’s

04 materials extend the life cycle of packaging materials and improve the utilisation of resources. For Co. Ltd.

Law Republic of China

example the company recycles cartons used during the logistics process and reuses them as containers Sanya Downtown refers to CDFG Sanya Downtown Duty-Free Store Personal refers to The Personal Information Protection Law of

on storage shelves alternative turnover boxes during transportation and packing boxes for the transfer of Store Co. Ltd. Information the People’s Republic of China

outbound goods so as to reduce the quantity of newly purchased cartons. Protection LawHaikou Meilan refers to Hainan Duty Free Haikou Meilan Airport Duty

Labour Law refers to The Labour Law of the People’s Republic of

Promote packaging automation and intelligent upgrades. The company uses single-sheet receipts Airport Duty-Free Free Store Co. Ltd.Shop China

05 and slim tapes into the logistics chain and explores the use of tape-free cartons at the end of the logistics Shenyang cdf refers to CDFG Shenyang Duty Free Merchandise Labour Contract refers to The Labour Contract Law of the People’s chain. Tape-free cartons are sealed entirely physically and they also allow consumers to feel that they are

Trading Co. Ltd. Law Republic of China

participating in environmental protection initiatives during the unpacking process. By making this change Trade Union Law refers to The Trade Union Law of the People’s

we hope to spread green consumption among large numbers of consumers. Duty-free refers to Imported goods that are exempt from

merchandise customs duties value added tax (VAT) and Republic of China

consumption tax on imports and domestically Work Safety Law refers to The Work Safety Law of the People’s

The company insists on combing publicity with inspection to promote the implementation of a green philosophy. Stores actively produced goods that are subject to tax Republic of China

rebates (VAT and consumption tax) that are

popularise the knowledge of plastic prohibition and restriction to customers and guide them on how to implement plastic reduction sold in duty-free shops Law on the refers to The Law of People’s Republic of China on

Prevention the Prevention & Control of Occupational

and waste classification. Kindly reminders are sent to customers when they pick up goods to encourage them use their own canvas Duty-free store refers to With the approval of the General & Control of Diseases

bags or backpacks and to discourage misuse of environment-friendly paper shopping bags. The company has set up a dedicated Administration of Customs business units set Occupational

up sales sites and supervised warehouses Diseases

team to carry out occasional inspections on prohibited plastic items in the Hainan area. Once identified items listed in the prohibited for storing duty-free commodities in places

plastic item catalogue will be sealed up. In 2023 Boao Duty-Free Store carried out three such inspections and no plastic bags or approved by the State Council of the Environmental refers to The Environmental Protection Law of the Protection Law People’s Republic of China

plastic tableware listed in the prohibited plastic item catalogue were identified. people’s Republic of China or its authorised

departments to sell duty-free commodities to Anti-food Waste refers to Anti-food Waste Law of the People’s

specified sales targets Law Republic of China

9 TAPA: Transported Asset Protection Association

Product Quality refers to Product Quality Law of the People’s Republic

10 WCA: World Cargo Alliance Law of China

100101

▼ ▼China Tourism Group Duty Free Corporation Limited * 2023 Environmental Social and Governance Report Appendix

Index Disclosure of content Disclosure of content

Tier 1 Tier 2 Tier 3 Location/Note Tier 1 Tier 2 Tier 3 Location/Note

indicators indicators indicators indicators indicators indicators

ESG Metrics System for ESG Reports of Listed Companies Controlled by Central Product Recall and Creating a Comfortable Environment for Governance Withdrawal Consumption to Ensure Trusted Business Product Safety Operations Governance Strategy Approval Robust Governance System for Long-term Strategies and and Review Stable Operations

State-owned Enterprises Index and Quality Negative Events Creating a Comfortable Environment for ProcessProcessesRelated to Products Consumption to Ensure Trusted Business Party Building Robust Governance System for Long-term

or Services Operations Leadership Stable Operations

Customer Delivering Excellent Services for People’s Ownership Robust Governance System for Long-term

Satisfaction Well-being Responsibilities Stable Operations

Disclosure of content Relevant section Disclosure of content Customer Customer Delivering Excellent Services for People’s Organisation

Basic information of the Location/Note Service & Complaints and Well-being Structure and Tier 1 Tier 2 Tier 3

Company and the Report About this Report indicators indicators indicators Product Advocacy Handling Functions of the Robust Governance System for Long-term and Service Customer Board of Directors Stable Operations

ESG governance Exercising Stronger Governance to Implement ESG

Addressing Climate Change to Protect the Complying with Commercial Ethics to Organisational Management Information and

Green technologies Environment Reinforce Internal Control Compliance Governance composition

Supervisory Board

Concepts Privacy Protection Strategy and and functions and Managementand recycling Green and Low-Carbon Operations for a

R&D and Innovation Appointment

ESG risk and opportunities Complying with Commercial Ethics to Reinforce Better Life Delivering Excellent Services for People’s Organizational Internal Control Compliance Management Structure Procedures and Green building Embracing Green Buildings to Fulfil the System Well-being Composition of the Refer to the 2023 Annual Report or other

Exercising Stronger Governance to Implement ESG renovation Green Building Philosophy Board of Directors corporate documentsStakeholder engagement Delivering Excellent Services for People’s Concepts Addressing Climate Change to Protect the Supervisory Board R&D Innovation Well-being

Green office and Environment and Management

Materiality assessment Exercising Stronger Governance to Implement ESG

Green Achievements Setting the Industry Benchmark for High-

operations Green and Low-Carbon Operations for a Compensation Plan

Concepts initiatives and quality Development Refer to the 2023 Annual Report or other

measures Better Life for Directors and

Resource and Intellectual Property Complying with Commercial Ethics to Optimising Supply Chain Management Supervisors

corporate documents

Environmental Green procurement

Protection Reinforce Internal Control Compliance

Disclosure of content and green supply Driven by the Environment and Intelligence Supplier Selection Optimising Supply Chain Management Compensation

Transparency Refer to the 2023 Annual Report or other

Tier 1 Tier 2 Tier 3 Location/Note

Management chain management Green and Low-Carbon Operations for a of Board corporate documents

System Better Life and Management Driven by the Environment and Intelligence management Compensation

indicators indicators indicators Management Measures Number and Creating a Comfortable Environment for Environmental Engaging in Charity Initiatives to Act as a of Suppliers Reasonableness Distribution of Consumption to Ensure Trusted Business Refer to the 2023 Annual Report or other

Environmental Aspect indicators public welfare Responsible Corporate of Management Taking Green Actions and Joining Hands Suppliers Operations Compensation corporate documentsactivities

Fresh water Green and Low-Carbon Operations for a with Brands to Deliver Green Value Supply Chain Supply Chain

consumption Better Life Green and Security and Internal control Internal Audit

Complying with Commercial Ethics to

Environmental Management Optimising Supply Chain Management Reinforce Internal Control Compliance

Recycled water Embracing Green Buildings to Fulfil the low-carbon management Embracing Green Buildings to Fulfil the Management Policies and Driven by the Environment and IntelligenceWater Integrity consumption Green Building Philosophy certification system certification Green Building Philosophy Supply Chain Measures Construction Complying with Commercial Ethics to

Intensity of water Green and Low-Carbon Operations for a Management Supply Chain standardize Reinforce Internal Control ComplianceEnvironmental Environmental Operational Safety and Physical and Mental

System Norms

consumption Better Life Security Assurance Optimising Supply Chain Management governance Integrity in

legal emergency Health and Emergency Driven by the Environment and Intelligence Construction Effectiveness

Fossil fuel Green and Low-Carbon Operations for a

consumption Better Life compliance response plan

Addressing Climate Change to Protect the Plan of Integrity Complying with Commercial Ethics to

Environment Construction Reinforce Internal Control Compliance

Resource Taxes Tax Payment Total energy Green and Low-Carbon Operations for a Social Responsibility Performance Overview Measures

Consumption Energy Social aspect indicators payment Situationconsumption Better Life Investor Relations

Energy Corporate Policies and Topic 1: Proactively Responding to National Management

Robust Governance System for Long-term

Green and Low-Carbon Operations for a Recruitment Policy Protecting Employee Rights and Promoting consumption Measures for Strategies by Fulfilling our Mission as a Their Interests Strategy

Stable Operations

intensity Better Life Employee and Implementation Participating in Central State-owned Enterprise Robust Governance System for Long-term

Packaging material Green and Low-Carbon Operations for a Recruitment Employee Structure Protecting Employee Rights and Promoting

Local Community Engaging in Charity Initiatives to Act as a Investor

Community Construction Responsible Corporate Investor Stable Operations

usage Better Life and Their Interests Relationship Communication Exercising Stronger Governance to Packaging Employment buildingAvoiding Child Topic 1: Proactively Responding to National Implement ESG Concepts

materials Packaging material

Management

Green and Low-Carbon Operations for a Labor or Forced Protecting Employee Rights and Promoting Contribution and Strategies by Fulfilling our Mission as a lightweight and Construction of

reduction Better Life Labor

Their Interests Impact on the Local Central State-owned Enterprise

Community Engaging in Charity Initiatives to Act as a Investor Relations Robust Governance System for Long-term

Compensation Investor Management Stable OperationsWastewater Green and Low-Carbon Operations for a Philosophy and Protecting Employee Rights and Promoting

Responsible Corporate

Relations Departmentdischarge Better Life Policy Their Interests Topic 1: Proactively Responding to National compliance

Effluents Strategies by Fulfilling our Mission as a

Management General Meeting Refer to the 2023 Annual Report or other

Wastewater Employee Working Hours and Protecting Employee Rights and Promoting

Policies and and of Shareholders

Green and Low-Carbon Operations for a Rest Periods Their Interests Measures for

Central State-owned Enterprise Situation corporate documents

management and Shareholder Better Life Compensation Participating in Topic 2: Capitalising on Our Competitive reduction measures and Benefits Compensation and Protecting Employee Rights and Promoting Social Charity Edge to Jointly Uphold ESG Concepts with

Rights Shareholder

Shareholders’ Communication Refer to the 2023 Annual Report or other

Green and Low-Carbon Operations for a Benefits Security Their Interests Activities Brands equity Situation corporate documentsPollution Exhaust emission Better Life Employee Engaging in Charity Initiatives to Act as a

Control Exhausts compliance Embracing Green Buildings to Fulfil the Democratic Protecting Employee Rights and Promoting Responsible Corporate Shareholders’

Green Building Philosophy Management Their Interests Social welfare Topic 1: Proactively Responding to National

Right to Know Robust Governance System for Long-term

Strategies by Fulfilling our Mission as a and Participate in Stable OperationsLegal compliance

of solid waste Green and Low-Carbon Operations for a

Occupational activities Investment and Decision-making

Health and Safety Operational Safety and Physical and Mental Effectiveness of Central State-owned Enterprise

disposal Better Life Management for Health Participating in Topic 2: Capitalising on Our Competitive creditors’ Solid waste Edge to Jointly Uphold ESG Concepts with rights and Credit Status Refer to the 2023 Annual Report or other General industrial Employee Employees Social Charity

solid waste Green and Low-Carbon Operations for a

Brands benefits corporate documents

Better Life rights Employee Safety National

Activities Engaging in Charity Initiatives to Act as a

management Risk Prevention and Operational Safety and Physical and Mental Health strategic Responsible Corporate Financial Refer to the 2023 Annual Report or other

Sources and types Green and Low-Carbon Operations for a Employee Control response Information Information Construction corporate documents

of GHGs Better Life Health and Response to of Accessible Delivering Excellent Services for People’s

Disclosure

disclosure

Green and Low-Carbon Operations for a Safety Safety Accidents Operational Safety and Physical and Mental Environment Well-being system Non-financial 2023 Environmental social and governance

GHG emissions Better Life and Work-related Health Transparency Information report

management Addressing Climate Change to Protect the Injuries

Topic 2: Capitalising on Our Competitive of information Disclosure

Edge to Jointly Uphold ESG Concepts with

Greenhouse Environment Protecting Employee Rights and Promoting Industrial disclosureBrands Regular

gas emission Scope 1 GHG Green and Low-Carbon Operations for a Employee Care and Their Interests

Transformation Delivering Excellent Services for People’s Quality of Supervision Audit

information and Evaluation Complying with Commercial Ethics to emissions Better Life Assistance Operational Safety and Physical and Mental Well-being

disclosure of All Disclosed Reinforce Internal Control ComplianceHealth

Scope 2 GHG Green and Low-Carbon Operations for a Rural Revitalisation

Climate Employee and Regional Topic 1: Proactively Responding to National

Information

emissions Better Life

Motivation and Diversified Training to Promote Staff Change GHG emissions Green and Low-Carbon Operations for a Development Coordinated

Strategies by Fulfilling our Mission as a

Compliance Robust Governance System for Long-term

Promotion Policy

intensity Better Life Development

Central State-owned Enterprise

Management Stable Operations

Employee System Complying with Commercial Ethics to

Emission Green and Low-Carbon Operations for a Employee Diversified Training to Promote Staff

Topic 1: Proactively Responding to National Reinforce Internal Control Compliance

reduction GHG mitigation Better Life Development

Education and Development National Belt and Road Strategies by Fulfilling our Mission as a Training Robust Governance System for Long-term

management management Addressing Climate Change to Protect the and Training

strategic Initiative and Central State-owned Enterprise Construction

Environment Career Planning response Overseas Fulfillment Engaging in Charity Initiatives to Act as a Compliance of Compliance

Stable Operations

and Position Diversified Training to Promote Staff Responsible Corporate System Complying with Commercial Ethics to

Addressing Climate Change to Protect the of ResponsibilitiesChange Support for Development Setting the Industry Benchmark for High- Reinforce Internal Control ComplianceClimate risk Climate risk Environment Employees quality Development Robust Governance System for Long-term

management management Green and Low-Carbon Operations for a

Employee Protecting Employee Rights and Promoting Topic 1: Proactively Responding to National Specific Process of Stable OperationsBetter Life

Impacts of Satisfaction

Employee Turnover Their Interests Strategies by Fulfilling our Mission as a Compliance Compliance Review Complying with Commercial Ethics to

Impacts of Industry Features Central State-owned Enterprise

Reinforce Internal Control Compliance

activities Production and Risk

activities products Embracing Green Buildings to Fulfil the and Other Social Topic 2: Capitalising on Our Competitive Robust Governance System for Long-term Biodiversity products and Standard Creating a Comfortable Environment for Managementand services on Green Building Philosophy Responsibility Edge to Jointly Uphold ESG Concepts with Risk Identification Stable Operationsservices on Management Consumption to Ensure Trusted Business biodiversity Product Fulfillment Brands and Early Warning Complying with Commercial Ethics to

biodiversity Product Safety Policies and Operationsand Service Setting the Industry Benchmark for High- Reinforce Internal Control ComplianceMeasures

Low-carbon Management

and Quality quality Development Robust Governance System for Long-term

Low-carbon Exercising Stronger Governance to Quality Creating a Comfortable Environment for development Governance Aspect indicators Risk Risk Control and Stable Operations

target and development target Implement ESG Concepts Management

Consumption to Ensure Trusted Business management Tracking Complying with Commercial Ethics to

and strategic Addressing Climate Change to Protect the Operationsstrategic Governance Robust Governance System for Long-term Reinforce Internal Control ComplianceResource and measures Environmentmeasures Strategy Stable Operations Robust Governance System for Long-term

Environmental Governance Governance Formulation Exercising Stronger Governance to Risk Reporting and Stable Operations

Management Water utilisation Green and Low-Carbon Operations for a Strategy and Implement ESG Concepts Management Complying with Commercial Ethics to

System management Better Life Organizational

Strategies and

Governance Robust Governance System for Long-term Reinforce Internal Control Compliance

Measures Resource Material usage Green and Low-Carbon Operations for a Structure

Processes

Strategy Stable Operations

management management Better Life Supervision Exercising Stronger Governance to

measures Energy use and Process Implement ESG Concepts

conservation Green and Low-Carbon Operations for a

management Better Life

102 103China Tourism Group Duty Free Corporation Limited * 2023 Environmental Social and Governance Report Appendix

HKEX Environmental Social and Governance Reporting Guide Index Aspect Content Report Content Aspect Content Report Content

Diversified Training to Complying with

The percentage of employees trained by

Promote Staff Development Description of practices relating to observing Commercial Ethics to

B3.1 gender and employee category (e.g. senior B6.3

Operational Safety and and protecting intellectual property rights. Reinforce Internal Control

Aspect Content Report Content Aspect Content Report Content management middle management). Physical and Mental Health Compliance

Statement of the Board of Aspect A3: The Environment and Natural Resources

A statement from the board The average training hours completed per Diversified Training to Creating a Comfortable

Directors B3.2

Addressing Climate employee by gender and employee category. Promote Staff Development Environment for

Statement of the Board of Change to Protect the Consumption to Ensure Aspect B4: Labour Standards

Directors General Disclosure Environment Description of quality assurance process and Trusted Business

Mandatory B6.4Governance Structure Exercising Stronger Policies on minimising the issuer’s significant Embracing Green Buildings General Disclosure recall procedures. Operations

disclosure A3Governance to Implement impacts on the environment and natural to Fulfil the Green Building Information on: Delivering Excellent

ESG Concepts resources. Philosophy (a) the policies; and Protecting Employee Services for People’s Well-

Green and Low-Carbon B4 (b) compliance with relevant laws and Rights and Promoting Their being

Reporting Principles About this Report Operations for a Better Life regulations that have a significant impact Interests Complying with

Reporting Boundary About this Report on the issuer relating to preventing child Description of consumer data protection Embracing Green Buildings Commercial Ethics to

Description of the significant impacts of and forced labour B6.5 and privacy policies and how they are

A. Environmental to Fulfil the Green Building Reinforce Internal Control activities on the environment and natural implemented and monitored.A3.1 Philosophy D e s c r i p t i o n o f m e a s u re s t o r e v i e w Protecting Employee Compliance

Aspect A1: Emissions resources and the actions taken to manage Green and Low-Carbon B4.1 employment practices to avoid child and Rights and Promoting Their

them. Aspect B7: Anti-corruption

General Disclosure Operations for a Better Life forced labour. Interests

Information on: General DisclosureGeneral Disclosure Protecting Employee

(a) the policies; and Description of steps taken to eliminate such Information on:Policies on identification and mitigation of Addressing Climate B4.2 Rights and Promoting Their Complying with

(b) compliance with relevant laws and practices when discovered. (a) the policies; and

Green and Low-Carbon A4 significant climate-related issues which have Change to Protect the Interests Commercial Ethics to

A1 regulations that have a signif icant B7 (b) compliance with relevant laws and

Operations for a Better Life impacted and those which may impact the Environment Reinforce Internal Control

impact on the issuer relating to air and Operating Practices regulations that have a signif icant issuer. Compliance

greenhouse gas emissions discharges impact on the issuer relating to bribery Aspect B5: Supply Chain Management

into water and land and generation of Description of the significant climate-related extortion fraud and money laundering.Addressing Climate

hazardous and non-hazardous waste. issues which have impacted and those A4.1 Change to Protect the Optimising Supply Chain Number of concluded legal cases regarding Complying with

which may impact the issuer and the actions Management Driven by the

The types of emissions and respective Green and Low-Carbon Environment corrupt practices brought against the issuer Commercial Ethics to

A1.1 taken to manage them. General Disclosure Environment and Intelligence B7.1

emissions data. Operations for a Better Life or its employees during the reporting period Reinforce Internal Control B5 Policies on managing environmental and Creating a Comfortable

B. Social and the outcomes of the cases. Compliance

Direct (Scope 1) and energy indirect (Scope social risks of the supply chain. Environment for Consumption

2) greenhouse gas emissions (in tonnes) and Green and Low-Carbon Employment and Labour Practices to Ensure Trusted Business Complying with

A1.2 Description of preventive measures and

where appropriate intensity (e.g. per unit of Operations for a Better Life Operations Commercial Ethics to Aspect B1: Employment B7.2 whistle-blowing procedures and how they

production volume per facility). Reinforce Internal Control Creating a Comfortable are implemented and monitored.General Disclosure Information on: Compliance

Total hazardous waste produced (in tonnes) Environment for Consumption (a) the policies; and Protecting Employee B5.1 Number of suppliers by geographical region.A1.3 and where appropriate intensity (e.g. per Need further improvement to Ensure Trusted Business Complying with B1 (b) compliance with relevant laws and Rights and Promoting Their

unit of production volume per facility). Operations Descript ion of ant i-corrupt ion training Commercial Ethics to regulations that have a signif icant Interests B7.3 provided to directors and staff. Reinforce Internal Control

Total non-hazardous waste produced (in impact on the issuer. Optimising Supply Chain Compliance

A1.4 tonnes) and where appropriate intensity (e.g. Need further improvement Management Driven by the Total workforce by gender employment type Protecting Employee Description of practices relating to engaging

per unit of production volume per facility). Environment and Intelligence CommunityB1.1 (for example full – or part-time) age group Rights and Promoting Their suppliers number of suppliers where the B5.2 Creating a Comfortable

Description of emission target(s) set and Green and Low-Carbon and geographical region. Interests practices are being implemented and how Aspect B8: Community Investment

A1.5 Environment for Consumption

steps taken to achieve them. Operations for a Better Life they are implemented and monitored.Protecting Employee to Ensure Trusted Business General Disclosure

Employee turnover rate by gender age group

Description of how hazardous and non- B1.2 Rights and Promoting Their Operations Policies on community engagement to and geographical region. Engaging in Charity

hazardous wastes are handled and a Green and Low-Carbon Interests understand the needs of the communities

A1.6 Description of practices used to identify B8 Initiatives to Act as a

description of reduction target(s) set and Operations for a Better Life Optimising Supply Chain where the issuer operates and to ensure Aspect B2: Health and Safety environmental and social risks along the Responsible Corporate

steps taken to achieve them. B5.3 Management Driven by the its activities take into consideration the supply chain and how they are implemented

General Disclosure Environment and Intelligence communities’ interests.Aspect A2: Use of Resources and monitored.Information on: Topic 1: Proactively

General Disclosure (a) the policies; and Topic 2: Capitalising on Our Responding to National

Policies on the efficient use of resources Green and Low-Carbon (b) compliance with relevant laws and Operational Safety and Competitive Edge to Jointly

A2 B2 Strategies by Fulfilling our

including energy water and other raw Operations for a Better Life regulations that have a significant impact Physical and Mental Health Uphold ESG Concepts with Mission as a Central State-

materials. on the issuer relating to providing a safe Description of practices used to promote Brands owned Enterprise

working environment and protecting environmentally preferable products and Optimising Supply Chain Focus areas of contribution (e.g. education

Direct and/or indirect energy consumption B5.4 Topic 2: Capitalising on Our employees from occupational hazards. services when selecting suppliers and how Management Driven by B8.1 environmental concerns labour needs

by type (e.g. electricity gas or oil) in total Green and Low-Carbon Competitive Edge to Jointly

A2.1 they are implemented and monitored. the Environment and health culture sport).(kWh in ’000s) and intensity (e.g. per unit of Operations for a Better Life Number and rate of work-related fatalities Uphold ESG Concepts with Operational Safety and Intelligence

production volume per facility). B2.1 occurred in each of the past three years BrandsPhysical and Mental Health Green and Low-Carbon

including the reporting year. Engaging in Charity

Water consumption in total and intensity (e.g. Green and Low-Carbon Operations for a Better Life

A2.2 Initiatives to Act as a

per unit of production volume per facility). Operations for a Better Life Operational Safety and B2.2 Lost days due to work injury. Aspect B6: Product Responsibility Responsible Corporate

Physical and Mental Health

Description of energy use efficiency target(s) Green and Low-Carbon

A2.3 General Disclosure Topic 1: Proactively

set and steps taken to achieve them. Operations for a Better Life Description of occupational health and Operational Safety and Information on: Responding to National

B2.3 safety measures adopted and how they are

Description of whether there is any issue in Physical and Mental Health (a) the policies; and

Strategies by Fulfilling our

implemented and monitored. Creating a Comfortable Resources contributed (e.g. money or time) Mission as a Central State-

sourcing water that is fit for purpose water Green and Low-Carbon (b) compliance with relevant laws and B8.2

A2.4 Environment for

efficiency target(s) set and steps taken to Operations for a Better Life Aspect B3: Development and Training regulations that have a signif icant

to the focus area. owned Enterprise

B6 Consumption to Ensure

impact on the issuer relating to health Engaging in Charity achieve them. Operational Safety and Trusted Business and safety advertising labelling and Initiatives to Act as a

Total packaging material used for finished Physical and Mental Health OperationsGeneral Disclosure privacy matters relating to products Responsible CorporateGreen and Low-Carbon

A2.5 products (in tonnes) and if applicable with Delivering Excellent

Operations for a Better Life Policies on improving employees’ knowledge and services provided and methods of

reference to per unit produced. B3 Services for People’s Well-and skills for discharging duties at work. redress.being

Description of training activities.Diversified Training to Percentage of total products sold or shipped

Promote Staff Development B6.1 subject to recalls for safety and health Need further improvement.reasons.Number of products and service related Delivering Excellent

B6.2 complaints received and how they are dealt Services for People’s Well-

with. being

104 105China Tourism Group Duty Free Corporation Limited * 2023 Environmental Social and Governance Report Appendix

GRI Standards Index GRI GRI GRI Standard Disclosure Location/Note Standard Disclosure Location/Note Standard Disclosure Location/Note

Exercising Stronger Governance to Embracing Green Buildings to Fulfil the Prevention and mitigation of occupational

2-26 Mechanisms for seeking advice and Implement ESG Concepts Interactions with water as a shared Green Building Philosophy 403-7 health and safety impacts directly linked

Operational Safety and Physical and

GRI raising concerns Delivering Excellent Services for People’s

303-1 resource Green and Low-Carbon Operations for a by business relationships Mental Health

Standard Disclosure Location/Note Well-being Better Life

403-8 Workers covered by an occupational Operational Safety and Physical and

GRI 1: Foundation 2021 Robust Governance System for Long-term Embracing Green Buildings to Fulfil the health and safety management system Mental Health

1: Stable Operations Management of water discharge- related Green Building Philosophy Operational Safety and Physical and

Foundation Report foundation including GRI content About this Report Exercising Stronger Governance to

303-2 impacts Green and Low-Carbon Operations for a 403-9 Work-related injuries Mental Health

2021 index and instructions for use etc GRI Content Index 2-27 Compliance with laws and regulations Implement ESG Concepts Better LifeProtecting Employee Rights and 403-10 Work-related ill health Operational Safety and Physical and

GRI 2 General Disclosures 2021 Promoting Their Interests 303-3 Water withdrawal

Green and Low-Carbon Operations for a Mental Health

Better Life

The organization and its reporting practices Green and Low-Carbon Operations for a GRI 404: Training and Education 2016

Better Life 303-4 Water discharge Need further improvement.Average hours of training per year per Diversified Training to Promote Staff

2-1 Organizational details About this ReportAbout the Company 303-5 Water consumption Need further improvement.

2-28 Membership associations Setting the Industry Benchmark for High- employee Developmentquality Development

2-2 Entities included in the organization’s

GRI 304: Biodiversity 2016

404-2 Programs for upgrading employee skills Diversified Training to Promote Staff

sustainability reporting About this Report Stakeholder engagement Operational sites owned leased managed Addressing Climate Change to Protect the and transition assistance programs Development

Reporting period frequency and contact 2-29 Approach to stakeholder engagement Exercising Stronger Governance to 304-1

in or adjacent to protected areas and Environment Percentage of employees receiving regular

2-3 Diversified Training to Promote Staff point About this Report Implement ESG Concepts areas of high biodiversity value outside Embracing Green Buildings to Fulfil the 404-3 performance and career development protected areas Green Building Philosophy Development

No relevant incidents during the reporting 2-30 Collective bargaining agreements Protecting Employee Rights and

reviews

2-4 Restatements of information period. Promoting Their Interests Addressing Climate Change to Protect the GRI 405: Diversity and Equal Opportunity 2016Environment

2-5 External assurance Need further improvement. GRI 3: Material Topics 2021 Robust Governance System for Long-term

Significant impacts of activities products Embracing Green Buildings to Fulfil the

Activities and workers 3-1 Process to determine material topics Exercising Stronger Governance to 304-2 Green Building Philosophy 405-1

Diversity of governance bodies and Stable Operations

Implement ESG Concepts and services on biodiversity Topic 2: Capitalising on Our Competitive employees Protecting Employee Rights and

2-6 Activities value chain and other business Edge to Jointly Uphold ESG Concepts Promoting Their Interests relationships About the Company 3-2 List of material topics Exercising Stronger Governance to Implement ESG Concepts with Brands 405-2 Ratio of basic salary and remuneration of Protecting Employee Rights and Need further improvement.

Exercising Stronger Governance to Topic 2: Capitalising on Our Competitive

women to men

Promoting Their Interests 3-3 Management of material topics

Diversified Training to Promote Staff Implement ESG Concepts

304-3 Habitats protected or restored Edge to Jointly Uphold ESG Concepts GRI 406: Non-discrimination 2016

2-7 Employees with BrandsDevelopment GRI 201: Economic Performance 2016 406-1 Incidents of discrimination and corrective No relevant incidents during the reporting

Operational Safety and Physical and IUCN Red List species and national actions taken period.Mental Health Direct economic value generated and Social Responsibility Performance 304-4 conservation list species with habitats in No relevant incidents during the reporting 201-1 GRI 407: Freedom of Association and Collective Bargaining 2016

Operational Safety and Physical and distributed

Overview areas affected by operations period.

2-8 Workers who are not employees Refer to the 2023 Annual Report. Operations and suppliers in which the right Mental Health Financial implications and other risks and Addressing Climate Change to Protect the GRI 305: Emissions 2016 407-1 to freedom of association and collective

No relevant incidents during the reporting

201-2 bargaining may be at risk period.Governance opportunities due to climate change Environment

305-1 Direct (Scope 1) GHG emissions Green and Low-Carbon Operations for a

2-9 Governance structure and composition Robust Governance System for Long-term Defined benefit plan obligations and other Protecting Employee Rights and Better Life

GRI 408: Child Labor 2016

Stable Operations 201-3 retirement plans Promoting Their Interests Protecting Employee Rights and

Nomination and selection of the highest Financial assistance received from 305-2 Energy indirect (Scope 2) GHG emissions

Green and Low-Carbon Operations for a

Operations and suppliers at significant risk Promoting Their Interests

2-10 governance body Refer to the 2023 Annual Report. 201-4 government Refer to the 2023 Annual Report.

Better Life 408-1 for incidents of child labor Complying with Commercial Ethics to

305-3 Other indirect (Scope 3) GHG emissions Need further improvement.

2-11 Chair of the highest governance body Refer to the 2023 Annual Report. Reinforce Internal Control ComplianceGRI 202: Market Presence 2016

Green and Low-Carbon Operations for a

Statement of the Board of Directors 305-4 GHG emissions intensity GRI 409: Forced or Compulsory Labor 2016Ratios of standard entry level wage by Protecting Employee Rights and Better Life

Role of the highest governance body in Robust Governance System for Long-term

202-1 gender compared to local minimum wage Promoting Their Interests Protecting Employee Rights and

2-12 305-5 Reduction of GHG emissions Need further improvement. Operations and suppliers at significant risk Promoting Their Interests overseeing the management of impacts Stable OperationsExercising Stronger Governance to 202-2 Proportion of senior management hired

Need further improvement. Emissions of ozone-depleting substances for incidents of forced or compulsory labor Complying with Commercial Ethics to

Implement ESG Concepts from the local community 305-6 (ODS) Need further improvement. Reinforce Internal Control Compliance

GRI 203: Indirect Economic Impacts 2016

2-13 Delegation of responsibility for managing

GRI 410: Security Practices 2016

Refer to the 2023 Annual Report. Topic 1: Proactively Responding to 305-7

Nitrogen oxides (NOx) sulfur oxides (SOx)

impacts Infrastructure investments and services and other significant air emissions

Need further improvement.Security personnel trained in human rights

203-1 National Strategies by Fulfilling our Mission 410-1 policies or procedures Not applicable.supported

Statement of the Board of Directors as a Central State-owned Enterprise

GRI 306: Waste 2020

Green and Low-Carbon Operations for a GRI 411: Rights of Indigenous Peoples 2016

Role of the highest governance body in Robust Governance System for Long-term Topic 1: Proactively Responding to 2-14 Stable Operations 203-2 Significant indirect economic impacts National Strategies by Fulfilling our Mission 306-1 Waste generation and significant waste- Better Life Incidents of violations involving rights of No relevant incidents during the reporting sustainability reporting Exercising Stronger Governance to as a Central State-owned Enterprise related impacts Embracing Green Buildings to Fulfil the

411-1 indigenous peoples period.

Implement ESG Concepts Green Building PhilosophyGRI 204: Procurement Practices 2016 GRI 413: Local Communities 2016

2-15 Conflicts of interest Refer to the 2023 Annual Report. Green and Low-Carbon Operations for a 204-1 Proportion of spending on local suppliers Need further improvement. Management of significant wasterelated Better Life Exercising Stronger Governance to

Exercising Stronger Governance to 306-2 Implement ESG ConceptsGRI 205: Anti-corruption 2016 impacts Embracing Green Buildings to Fulfil the

Implement ESG Concepts Green Building Philosophy Operations with local community Setting the Industry Benchmark for High-2-16 Communication of critical concerns Complying with Commercial Ethics to 205-1 Operations assessed for risks related to corruption Need further improvement.

413-1 engagement impact assessments and quality Development

Reinforce Internal Control Compliance 306-3 Waste generated Need further improvement. development programs Topic 1: Proactively Responding to

National Strategies by Fulfilling our Mission

Collective knowledge of the highest Statement of the Board of Directors

Communication and training about Complying with Commercial Ethics to 306-4 Waste diverted from disposal Need further improvement.205-2

2-17 anticorruption policies and procedures Reinforce Internal Control Compliance

as a Central State-owned Enterprise

governance body Exercising Stronger Governance to 306-5 Waste directed to disposal Need further improvement.Implement ESG Concepts

205-3 Confirmed incidents of corruption and Complying with Commercial Ethics to

Operations with significant actual and

GRI 308: Supplier Environmental Assessment 2016 413-2 potential negative impacts on local No relevant incidents during the reporting

2-18 Evaluation of the performance of the

actions taken Reinforce Internal Control Compliance

Refer to the 2023 Annual Report. 308-1 New suppliers that were screened using Optimising Supply Chain Management communities

period.highest governance body GRI 206: Anti-competitive Behavior 2016 environmental criteria Driven by the Environment and Intelligence GRI 414: Supplier Social Assessment 2016

2-19 Remuneration policies Refer to the 2023 Annual Report.

206-1 Legal actions for anti-competitive behavior anti-trust and monopoly practices Need further improvement. 308-2

Negative environmental impacts in the Need further improvement. 414-1 New suppliers that were screened using Optimising Supply Chain Management 2-20 Process to determine remuneration Refer to the 2023 Annual Report. supply chain and actions taken social criteria Driven by the Environment and Intelligence

2-21 Annual total compensation ratio Refer to the 2023 Annual Report. GRI 207: Tax 2019 GRI 401: Employment 2016 Negative social impacts in the supply No relevant incidents during the reporting

Strategy policies and practices 207-1 Approach to tax Refer to the 2023 Annual Report. 401-1 New employee hires and employee Protecting Employee Rights and

414-2 chain and actions taken period.

Statement of the Board of Directors Tax governance control and risk turnover Promoting Their Interests Statement on sustainable development 207-2 Refer to the 2023 Annual Report. GRI 415: Public Policy 20162-22 strategy Exercising Stronger Governance to

management Benefits provided to full-time employees

Implement ESG Concepts 401-2 that are not provided to temporary or part- Protecting Employee Rights and

415-1 Political contributions Not applicable.

207-3 Stakeholder engagement and Exercising Stronger Governance to Promoting Their Interests management of concerns related to tax Implement ESG Concepts time employees GRI 416: Customer Health and Safety 2016Statement of the Board of Directors

Exercising Stronger Governance to 207-4 Country-by-country reporting Refer to the 2023 Annual Report. Protecting Employee Rights and Assessment of the health and safety Creating a Comfortable Environment for

Implement ESG Concepts 401-3 Parental leave Promoting Their Interests 416-1 impacts of product and service categories Consumption to Ensure Trusted Business

2-23 Policy commitments Complying with Commercial Ethics to GRI 301: Materials 2016 OperationsGRI 402: Labor/Management Relations 2016

Reinforce Internal Control Compliance 301-1 Materials used by weight or volume Need further improvement. Incidents of non-compliance concerning

Protecting Employee Rights and 402-1 Minimum notice periods regarding 301-2 Recycled input materials used Need further improvement. Need further improvement. 416-2 the health and safety impacts of products

No relevant incidents during the reporting

Promoting Their Interests operational changes and services period.Reclaimed products and their packaging

Statement of the Board of Directors 301-3 materials Need further improvement. GRI 403: Occupational Health and Safety 2018 GRI 417: Marketing and Labeling 2016

Exercising Stronger Governance to

403-1 Occupational health and safety Operational Safety and Physical and Implement ESG Concepts GRI 302: Energy 2016 Complying with Commercial Ethics to management system Mental Health

Complying with Commercial Ethics to Reinforce Internal Control Compliance

302-1 Energy consumption within the Green and Low-Carbon Operations for a Hazard identification risk assessment Operational Safety and Physical and 417-1

Requirements for product and service Creating a Comfortable Environment for

2-24 Embedding policy commitments Reinforce Internal Control Compliance organization Better Life 403-2 information and labelingDelivering Excellent Services for People’s and incident investigation Mental Health Consumption to Ensure Trusted Business

Well-being 302-2 Energy consumption outside of the Operations

Creating a Comfortable Environment for organization

Need further improvement. 403-3 Occupational health services Operational Safety and Physical and Mental Health Incidents of non-compliance concerning

Consumption to Ensure Trusted Business No relevant incidents during the reporting 302-3 Energy intensity Green and Low-Carbon Operations for a Worker participation consultation and 417-2 product and service information and

Operations Better Life period.403-4 communication on occupational health Operational Safety and Physical and labeling

Exercising Stronger Governance to Embracing Green Buildings to Fulfil the and safety Mental Health302-4 Reduction of energy consumption 417-3 Incidents of non-compliance concerning No relevant incidents during the reporting Green Building Philosophy

2-25 Processes to remediate negative impacts Implement ESG Concepts Worker training on occupational health Operational Safety and Physical and marketing communications period.Complying with Commercial Ethics to

302-5 Reductions in energy requirements of

Reinforce Internal Control Compliance products and services Need further improvement.and safety Mental Health GRI 418: Customer Privacy 2016

Protecting Employee Rights and Substantiated complaints concerning

GRI 303: Water and Effluents 2018 403-6 Promotion of worker health Promoting Their Interests 418-1 breaches of customer privacy and losses

No relevant incidents during the reporting

Operational Safety and Physical and of customer data period.Mental Health

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