ABOUT THE REPORTCHAIRMAN’S SPEECHHIGHLIGHTS OF SUSTAINABLE DEVELOPMENT IN 2019SUSTAINABILITY PERFORMANCE OVERVIEW IN 2019
QUANTITATIVE PERFORMANCELIST OF HONORS
1.1 ABOUT THE COMPANY
1.2 SUSTAINABLE DEVELOPMENT
MANAGEMENT
1.2.1 Sustainable development
governance structure
1.2.2 Stakeholder identi?cation and
communication
1.2.3 Materiality issues
1.3 RISK MANAGEMENT AND
INTERNAL CONTROL
1.3.1 Risk management system
1.3.2 ESG risk management
1.4 BUSINESS ETHICS MANAGEMENT
1.4.1 Internal integrity management system
1.4.2 Anti-corruption measurement
2.1 EMPLOYEE CARE AND
DEVELOPMENT
2.1.1 Rights protection
2.1.2 Recruitment and promotion
2.1.3 Training and development
2.1.4 Occupational health and safety
2.1.5 Welfare and care
2.2 PHILANTHROPIC DONATIONS
AND SUPPORT
2.2.1 Support students
2.2.2 Medical assistance
2.2.3 Disaster management
2.2.4 Poverty alleviation
2.2.5 Voluntary service
3.1 DEVELOPING GREEN
LOGISTICS
3.1.1 Green packaging
3.1.2 Green transportation
3.1.3 Green shipment
3.2 ADDRESSING CLIMATE
CHANGE
3.3 FOSTERING ENVIRONMENTAL
PROTECTION CULTURE
3.3.1 Environmental activities
3.3.2 Green of?ce
4.1 SERVICE AND PRODUCT OPTIMIZATION
4.1.1 Customer and service optimization
4.1.2 Technology and product innovation
4.1.3 Safe delivery and transportation
4.1.4 Data privacy and security policy
4.2 SUPPLIER COOPERATION
4.2.1 Supplier management mechanism
4.2.2 Procurement with integrity and fairness
4.2.3 Striving for responsible supply
POLICY LISTESG KEY PERFORMANCE TABLESGRI STANDARDS INDEXREADERS’ FEEDBACK
SOCIETY
ECONOMYP02-P07
P21-P40P08-P20
P41-P54P55-P69
P70-P86
ABOUT THE REPORTCHAIRMAN’S SPEECHHIGHLIGHTS OF SUSTAINABLE DEVELOPMENT IN 2019SUSTAINABILITY PERFORMANCE OVERVIEW IN 2019
QUANTITATIVE PERFORMANCELIST OF HONORS
1.1 ABOUT THE COMPANY
1.2 SUSTAINABLE DEVELOPMENT
MANAGEMENT
1.2.1 Sustainable development
governance structure
1.2.2 Stakeholder identi?cation and
communication
1.2.3 Materiality issues
1.3 RISK MANAGEMENT AND
INTERNAL CONTROL
1.3.1 Risk management system
1.3.2 ESG risk management
1.4 BUSINESS ETHICS MANAGEMENT
1.4.1 Internal integrity management system
1.4.2 Anti-corruption measurement
2.1 EMPLOYEE CARE AND
DEVELOPMENT
2.1.1 Rights protection
2.1.2 Recruitment and promotion
2.1.3 Training and development
2.1.4 Occupational health and safety
2.1.5 Welfare and care
2.2 PHILANTHROPIC DONATIONS
AND SUPPORT
2.2.1 Support students
2.2.2 Medical assistance
2.2.3 Disaster management
2.2.4 Poverty alleviation
2.2.5 Voluntary service
3.1 DEVELOPING GREEN
LOGISTICS
3.1.1 Green packaging
3.1.2 Green transportation
3.1.3 Green shipment
3.2 ADDRESSING CLIMATE
CHANGE
3.3 FOSTERING ENVIRONMENTAL
PROTECTION CULTURE
3.3.1 Environmental activities
3.3.2 Green of?ce
4.1 SERVICE AND PRODUCT OPTIMIZATION
4.1.1 Customer and service optimization
4.1.2 Technology and product innovation
4.1.3 Safe delivery and transportation
4.1.4 Data privacy and security policy
4.2 SUPPLIER COOPERATION
4.2.1 Supplier management mechanism
4.2.2 Procurement with integrity and fairness
4.2.3 Striving for responsible supply
POLICY LISTESG KEY PERFORMANCE TABLESGRI STANDARDS INDEXREADERS’ FEEDBACK
SOCIETY
ECONOMY
P02-P07
P21-P40P08-P20
P41-P54P55-P69
P70-P86
ABOUT THE REPORTCHAIRMAN’S SPEECHHIGHLIGHTS OF SUSTAINABLE
DEVELOPMENT IN 2019SUSTAINABILITY PERFORMANCE
OVERVIEW IN 2019QUANTITATIVE PERFORMANCE
LIST OF HONORS
2019 S.F. Holding Co., Ltd. Sustainability Report
顺丰控股 2019 年度可持续发展报告
About the Report
Time RangeThis report dates from January 1, 2019 to December 31, 2019.CoverageThis report covers the business of SF Holding and its major subsidiaries in regions including the People’s Republic of China, the United States, the UnitedKingdom, Singapore, and Malaysia.Data ExplanationLand transportation data in this report covers vehicles in mainland China, Hong Kong, and Macao. Air transportation data covers SF Holding’s ownall-cargo aircraft. Air transportation ground operations data covers the Shenzhen headquarters and the bases in Beijing and Hangzhou. Office andoperation network data covers headquarters office buildings. Industrial park data covers self-operated industrial parks in mainland China and Hong Kong.SF Holding has been improving its environmental data management. In the future we will gradually include the leasing fleets of cars and aircrafts,properties, industrial parks, warehousing, and transit stations into our environmental data statistics.There is no restatement of information in this report. Unless otherwise stated, it uses RMB as the currency unit.Basis of PreparationUnited Nations Sustainable Development Goals (SDGs)Guidelines for Sustainability Reporting Standards (GRI Standards) of the Global Sustainability Standards Board (GSSB)Shenzhen Stock Exchange Social Responsibility Instructions to Listed Companies (《深圳证券交易所上市公司社会责任指引》)Key indicators of corporate environmental, social, and governance performance by capital market rating agencies.We created this report using systematic procedures including research and interviews, the identification of important stakeholders and material issuesrelated to ESG, and our understanding of stakeholder opinions. The procedures also include the determination of material issues, the scope of ESGdisclosure, and the collection and review of relevant information. We prepared the report based on collected relevant information and review andapproval by the Board of Directors.Report TitleFor the convenience of expression and reading, “SF Holding”, “the Company”, “our company” and “we” in this report refer to “S.F. Holding Co., Ltd.”.Approval of This ReportThis report was approved by the Board of Directors on 7th, July 2020 after confirmation by the management.
Accessibility of This Report
You can obtain the electronic version of this report from the following website: SF Holding official website https://www.sf-express.com.For further consultation, or to offer any opinion or suggestion about this report, please contact the Company via sfir@sf-express.com.
This is the first annual sustainability report releasedby S.F. Holding Co., Ltd. It focuses on our sustainabledevelopment management and performance, followingthe principles of balance, comparability, accuracy,timeliness, clarity, and reliability.
Chairman’s Speech
The uncertain international situation and the slowdown in domestic market growth led to severe industrial competition in 2019. SF Holding continuesto use science and technology for mutual benefit as we lead in logistics services, prioritize customers, and enhance our supply chain service capabilities.We also focus on green logistics construction and attach great importance to employee care. We embrace our social responsibilities and promote thesustainable development of the Company.2019 is our 26th anniversary. While the business performance continues to become better, we realized that it is our responsibility to balance therelationship between economy, environment, society and governance. We should enhance ESG performance through technology and explore an innovatesustainability approach for the industry and society. Corporate responsibility and responsibility. We hope that with this sustainability report, we willfully demonstrate our sustainable development philosophy and achievements to stakeholders. We also assess the material issues related to sustainabledevelopment in this report.Continue to optimize corporate governance. SF Holding has created clear risk management strategic objectives with a focus on optimizing internalcontrol systems. We use information technology for intelligent management and risk control. We expanded our original four professional committeesto include a Risk Management Committee that will create a risk information database including ESG risks. We also encouraged more interdepartmentalconnections and promoted diverse closed-loop risk management work. In 2019, our independent directors conducted on-site investigations on ourcold chain, local and special economy, and other business services through our Independent Director Day activity. All these measures deepened ourunderstanding of our operations and inspired us to put forward constructive ideas.Pave the way for green and low-carbon development. SF Holding advocates green operations and packaging internally in our commitment toa packaging recycling ecosystem. We also promote green logistics externally. In 2019, we developed green logistics measures including box-pile ratiooptimization, reduction of body paper weight and packaging weight, and extensive deployment of clean energy vehicles. In the supply chain sector, weoffered photovoltaic customers a business service featuring circular packaging + warehousing + logistics. This service solves transportation cost and safetyproblems and helps develop the green energy industry. We also identified and controlled the risks and opportunities brought about by climate change.The Board of Directors managed the transitional and physical risks caused by climate change while helping us towards a new stage of sustainabledevelopment.Join hands with employees to grow together. For SF Holding, employees are our greatest asset and core asset. We and employees share benefits,adversities, and create a harmonious, loving, and mutually helping family through various internal management platforms. SF Holding attaches greatimportance to diversified employment and protection of employees’ rights. We emphasize the employment of diverse groups including veterans, thosewith disabilities, and local employees. We also support the SF Labor Union Representative Mechanism, which has 15,000 representatives. We nurturetalent and provide support for employees to improve their academic qualifications and help them obtain skills and certificates. We have also establisheda communication platform to address our employees’ needs. We have created a management mechanism for the safety of personnel, fire, express mail,and equipment. In addition to statutory welfare and social security, we also provide workforces with additional accident protection and major illnessinsurance. The “Feng Xiang” welfare platform combines the “medicine, food, housing and education” welfare projects to realize online and offlinedual-channel, comprehensive and diversified welfare systems.Contribute to fight against the pandemic. At the beginning of 2020, COVID-19 epidemic was suddenly fierce. During the Spring Festival, when theperiod should be laughter and warming, the epidemic brought a layer of shadows. The whole country was faced with server dilemmas and pressures:
the shortage of manpower caused by returning to hometown, the road blockages caused by the epidemic prevention, the health and safety risks ofemployees caused by COVID-19. At this key period, SF Holding and its employees bravely rose to the challenge. With its global logistics network andend-to-end customized services, SF Holding provided a strong professional guarantee for the delivery of anti-epidemic materials such as medical drugs,precision instruments, production equipment, and civilian materials. We united the strength of various business sectors in a very short time. Even thoughthey suffered high risks of COVID-19, many of our couriers still in-sisted on voluntarily staying in their position. During the Spring Festival, we trans-ported more than 4,600 tons of epidemic prevention materials and accumulated 190 flights. At this grim situation, the supply chain was considered asthe “life chain” of society. By achieving an agile, efficient and intelligent express logistics service sys-tem, SF Express lived up to the trust of the country,government, corporations and consumers. Even under such great crisis and stress, SF Holding successfully brought new vigor and vitality into the “LifeChain”.We pay tribute to all front-line and back-office employees, whose unremitting and painstaking efforts helped us to fulfil our mission. In the future, welook forward to working with all stakeholders to increase our value, create a greener and more efficient logistics industry, and build a better tomorrow.
2019 S.F. Holding Co., Ltd. Sustainability Report
顺丰控股 2019 年度可持续发展报告
Highlights of Sustainable Development in 2019
Highlights of the Contents
Governance
We surveyed employees on the annual integrity index. The results showed that 6.2% more employees would report corruptionto the company compared to the previous year.
Society
We enhanced diversified employment, including tens of thousands of veterans, people with disabilities, and overseas localemployees.We supported employees in obtaining academic or vocational certifications. In 2019, we supported 555 employees andinvested 4,622,686.We built the NuanFeng Plan employee care and welfare platform. We established 12 employee clubs and organized over 480club activities to improve employees’ work-life balance.Our occupational health and safety management system helped us to pass the ISO 45001 certification.We donated 20 million during the COVID-19 pandemic, transporting pandemic prevention materials and ensuring safe delivery.
Environment
Our green packaging plan reduced greenhouse gas emissions by about 36,000 tons in 2019. We reduced the use of packagingmaterials including cartons, plastic bags, and file seals. We also developed the Feng BOX reusable packaging box.We invested in over 11,000 clean energy vehicles in 2019 to reduce greenhouse gas emissions by about 67,000 tons.Photovoltaic power generation projects at our Yiwu and Hefei industrial parks generated 1,296,826.4 kW·h of energy.Our 2019 SF Holding annual meeting achieved carbon neutrality through afforestation.Our intelligent power management system in SF Wenzhou District reduced the unnecessary waste of power resources.
Economy
We optimized our WeChat public account, official website, and WeChat applet for accessibility, making it easier for visuallyimpaired users to place orders.We used science and technology to build the Celestial Hound Early Warning System that controls every step in the flow of itemsand ensures safe delivery.We passed the ISO 29151 personal identity information protection practice guideline certification and the ISO 27701:2019privacy information management certification.We created the Regulations on Green Procurement Management of Procurement Supply Chain Center and addedcorresponding environmental protection requirements to supplier certification standards, bidding regulations, contract signing,and daily management to support green procurement.We supplemented the social responsibility clauses in our supplier contracts to clarify our partners’ responsibilities to employeesand the environment. We achieved a 100% signing rate.
Sustainability Performance Overview in 2019
Quantitative performance
IndicatorsDataWorkforce signing the Letter of Commitment to Anti-corruption87.9%Hours of workforce training2,575,721 hoursEmployees receiving financial support for degree study555Safe production investment56.5 millionSafety drills1,339Safety training coverage rate100%Input of workforce consideration services67.7 millionReduced carbon emissions due to clean energy vehicles67,000 tonsReduced carbon emissions due to green packaging36,000 tonsRenewable energy generation capacity1,296,826.4 kW·hElectronic waybill utilization rate99.7%Technology investment3,667.8 millionNumber of patents granted1,005 itemsMajor cybersecurity and information leakage incidents0Signing rate of social responsibility clauses100%
2019 S.F. Holding Co., Ltd. Sustainability Report
顺丰控股 2019 年度可持续发展报告
List of honors
Prizes2019 Government-Level National High-Tech Enterprise QualificationNinth Most Admired Chinese Company in 2019One of 70 Outstanding Brands for the 70th Anniversary of the Founding of New ChinaNamed Annual New Brand at the 2019 Top Chinese Brand CeremonyTop Ten Units of 2015-2018 Anti-Fraud Work in Enterprises2019 Top 30 Chinese Best EmployersS.F. Express ranked 76th in the 16th China Charity List2019 China Most Socially Valuable EnterpriseIn the DIA, Feng Box won the Best Work AwardThe Rehabilitation of the Environment and the Reinvigoration of Economic Benefits project won the Golden Award in the Sustainable DevelopmentCategory of the China Innovation Communication Award (Dandelion Award)Among MIT Technology Review’s 50 Smartest Companies (TR50) in 20192019 Technological Enterprise Award2019 First Prize in the China Federation of Logistics and Purchasing (CFLP)’s Scientific and Technological Award2019 China Smart Logistics Top Ten Innovative Logistics Leading Enterprise2019 China Smart Logistics High-Quality Brand EnterpriseSF Data Lighthouse won top price in the postal industry’s first Scientific and Technological AwardSF Big Data Platform won the Top Ten Big Data Cases awardSF Big Data Platform won the 2019 Big Data Industry Innovation Award at the 6th China International Big Data SummitAI Argus (慧眼神瞳) won the CFLP’s 2019 Logistics Technology Innovation Award2019 Five-Star Cold Chain Logistics Enterprise (Comprehensive)Top 10 Logistics Companies in the 2018-2019 pharmaceutical supply chain’s Golden Award
盗屛眜
(07&3/"/$&
2019 S.F. Holding Co., Ltd. Sustainability Report
顺丰控股 2019 年度可持续发展报告
Policies
Management System of Company Risk ControlManagement System of SF Holding CrisesSF Holding Anti-Corruption Management SystemSF Holding Integrity HandbookNepotism Avoidance Management MeasuresRewards and Punishment Management RegulationsReporting Management MeasuresEmployee Handbook (Chinese and English version)
Key Performance
IndicatorsDataFollow-up feedback rate of effective reporting100%Completion rate of ‘three ones’ in handling complaints99%Workforce signing the Letter of Commitment to Anti-corruption87.9%Hours of workforce anti-corruption education9,738
United Nations Sustainable Development Goals (SDGs)Responses in This Chapter
Goal 13: Climate Action
SF Holding identifies climate change risks and opportunities, incorporates thoserisks into the enterprise risk information database, and conducts complete andeffective identification and control.
1.1 About the Company
SF Holding is a leading integrated express and logistics service provider in China that offers integrated logistics solutions. We are an intelligent logisticsoperator with network scale advantages. And an aviation, ground, and information network serving domestic and international customers. We adopt adirect management mode, unifying operations and management across all branches to ensure the quality of the network.We are aware of the importance of sustainable development to enterprises. We believe that sustainable environmental and social development and thehappiness of our stakeholders is our responsibility alongside our duty to fulfil our business objectives and create long-term shareholder value.Our vision is to become the most trustworthy and respectable logistics business partner. We pursue this with the core values of customer success,innovation and inclusiveness, equality and respect, openness, and mutual benefit reflected in a corporate culture 27 years in the making.For us, corporate culture is a belief, a commitment, and a practice. It is reflected in the words and deeds of all our employees and in our operatingbehavior.
Core ValuesCustomer Success
Creating the ultimate service experience with customers as the priorityCreating outstanding customer value with the need to changeInnovation and Inclusiveness
Exploring the unknown path with an innovative spiritGuaranteeing innovative progress with inclusivenessEquality and Respect
Treating each other as equalsRespecting each other and accepting others’ opinions by listening and understandingOpenness and Mutual Benefits
Embracing change and seeking development with an open mindSeeking common ground while reserving differences and winning the future in cooperation
2019 S.F. Holding Co., Ltd. Sustainability Report
顺丰控股 2019 年度可持续发展报告
1.2 Sustainable Development Management
SF Holding is committed to integrating corporateand social values. We have established a sustainabledevelopment management structure, maintained closecommunication with our stakeholders, and listened totheir opinions. This enables us to identify and respond tomajor sustainable development issues.
1.2.1 Sustainable development governance structure
We have established a three-level sustainable development framework. The Office of the Board of Directors is responsible for coordinating our sustainabledevelopment, collecting and reviewing stakeholder recommendations for sustainable development work, and summarizing the submission to the Boardof Directors. It reviews the preparation of the sustainability report for approval by the Board of Directors. Representatives from functional departments,business groups (BGs) and business units (BUs) related to sustainable development form a sustainable development working group. As the mainsustainable development body, the group is responsible for implementing daily sustainable development tasks and providing relevant information for thepreparation of the sustainability report.
SF Holding’s sustainable development management
organizations
Board of Directors
Sustainable development leading group:
Of?ce of the Board of DirectorsSustainable development workinggroup: representatives of variousfunctional departments, BG and BU
1.2.2 Stakeholder identification and communication
SF Holding attaches great importance to communicating with stakeholders. We have established diverse communication channels catering for differentparties. Through these, we to listen to the suggestions and opinions of all relevant parties to understand their expectations and requirements andimprove our sustainable development governance and operation. We promptly disclose relevant information about areas including policy updates, dailyoperations, development changes, and special changes, and inform relevant parties about our sustainable development work. In 2019, we held fourshareholders’ meetings and communicated with investors.
Stakeholder communication list
StakeholdersMain ConcernsForm of CommunicationResponse MeasuresGovernment/Regulatory bodies
Observing disciplines and lawsPaying taxes in accordance withlawsSupporting local economicdevelopment
Information disclosureSpecial reportStatistical statement
Operating in compliance with lawsPreventing major safety accidentsIncreasing the local employment ratePromoting industrial poverty alleviation
Investors
Creating high economic valueCorporate governanceCompliance and riskmanagementResponsibility management
Information disclosureShareholder’s meetingRoadshowOn-site inspection
Establishing and improving thescientific decision-making andsupervision mechanismStrengthening risk managementProper information disclosureOrganizing and participating inactivities targeting different types ofshareholders
Employees
Diversity and human rightsprotectionEmployee dedicationEmployee careTraining and developmentOccupational health and safetymanagement
Staff congressSFIM platformEmployee engagement surveysDiscussion, communication,and other activities
Protecting employees’ rights accordingto the lawOffering training programsImproving the talent promotion andsalary mechanismStrengthening occupational health andsafety managementPromoting diversified employeebenefitsCommunity residents/Charitableorganizations
Charity and volunteeringservicesHelping communitydevelopment
Building the communicationmechanismOn-site investigationVolunteer communication
Carrying out various charity activitiesIntensifying industrial poverty alleviationEncouraging employees to take part involuntary servicesCustomers
Optimizing products andservicesSafe delivery and transportationData securityProtecting privacy
Customer satisfaction surveyson delivery servicesEstablishing customercommunication and complaintchannels
Providing efficient, reliable, and fastlogistics servicesEnhancing the customer claims processBuilding a safety ecosystemPartners/Industry associations
Sustainable supply chainOpen and fair procurementEnhancing internationalcommunication andcooperation
Reaching agreements orcontractsConducting supplier trainingHolding summit
Sunshine procurementEliminate commercial briberyParticipating in industry exchangeactivitiesMedia/Public
Information transparencyInteraction with the media
Information disclosureBuilding a communicationmechanism
Active communication throughwebsites and other official internetplatformsProviding external publicity materials
2019 S.F. Holding Co., Ltd. Sustainability Report
顺丰控股 2019 年度可持续发展报告
1.2.3 Materiality
issuesWe conducted three steps todetermine our major sustainabledevelopment issues in 2019, measurethe degree of stakeholder interestin each one, and make a targetedresponse.
Step 1: Building a base for sustainable development issues
We screened and identified the applicability of each sustainable development issue to SF Holdingby analyzing policy trends in the express and logistics industry, investigating capital market ESGratings, benchmarking domestic and foreign competitors, and examining standards for preparingdomestic and foreign sustainability reports, Then we streamlined these issues to form an issuesbase. It contains 23 issues spanning four responsibility categories: employees, customers andproducts, business and operation development, and the environment.Step 2: Stakeholder surveysWe send questionnaires to various stakeholders through our web-based questionnaire andSFIM Platform. We also interpret issues to ensure that all stakeholders can consider them.Stakeholder survey activities in 2019 cover government/regulatory bodies, investors, our directorsand management, employees, community residents/charitable organizations, customers,partners/industry associations, media/public, and other relevant parties, with 32,773 collectedquestionnaires.Step 3: Analysis of material issues
After analyzing the survey and questionnaire responses. we arranged the scores according tostakeholder and enterprise development importance to form a two-dimensional matrix.
SF Holding material issues matrix for sustainable development in 2019
Importance to stakeholders
Signi?cance to businessGenerally importantHighly importantGenerally important
Highly important
Employee responsibilityCustomer & product responsibilityCorporate governance r
Environment responsibility
Customer data security and privacy protection
Safe delivery and transportation
Occupational health and safety management
Compliance and risk management
Product services and innovation
Employee training and development
Complete corporate governance
Reducing greenhouse gas emissions
Forging sustainable green supply chains
Focusing on employee dedication
Promoting green packaging
Employee care
Fulfilling social responsibilities
Enhancing energy efficiency
Employee diversity and human rights protection
Pollutant discharge and environmental protection management
Continuing to obtain economic benefits
Recycling and management of waste
Environmental protection activities
Managing the use of water resources
Carrying out charitable and voluntary services
Management and development of the labor union
Helping local communities grow
2019 S.F. Holding Co., Ltd. Sustainability Report
顺丰控股 2019 年度可持续发展报告
SF Holding uses an internal control and risk management system to meet regulatory and compliance requirements. We identify and evaluate theenvironmental, social and governance (ESG) risks in company operation and development. We also clarify our ESG risk management strategies to mitigatecontrollable risks.
1.3 Risk Management and Internal Control
Risk management and control target:
Identify potential issues, manage risks according to our corporate risk appetite,and guarantee that we will achieve our targets.
In 2019, risk control training covers 100% of the new employees, training on various risks covers 100% of the on-the-job personnel.
1.3.1 Risk management system
We created an internal control and risk management system according to laws and regulations including Basic Standards for Internal Control ofEnterprises, Guidelines of the Shenzhen Stock Exchange for the Standard Operation of Listed Companies on the Small and Medium-sized EnterpriseBoard, and the Enterprise Risk Management Framework. In 2019 we continued to optimize the internal control system. We created risk managementstrategies covering issues including regulatory and compliance requirements, diversified development, operational safety and efficiency, reputation, andfinancial stability.
We created the Management System of Company Risk Control and the Management System of SF Holding Crises in accordance with the relevant lawsand internal regulations, including the Company Law of the People’s Republic of China, the Code of Corporate Governance for Listed Companies, andthe Articles of Association of S.F. Holding Co., Ltd. All these measures ensure the effective identification and monitoring of risks.We have developed an organizational structure to support risk management. Our Risk Management Committee implements our risk managementstrategies on behalf of the Board of Directors and authorizes the Chief Risk Officer (CRO). Sitting under that Committee, the Risk Management WorkingCommittee creates overall risk management strategies and makes decisions on material risk prevention, control, and response. The CRO guides andevaluates the risk control mechanism for each department, BG, BU, and region. Our Risk Control and Compliance Office coordinates risk control andcompliance work, reporting to the CRO. The leader of each functional department, BG, BU, and region is responsible for related risk control in theirrelated work area, introducing risk management and implementation rules. They are also responsible for identifying, evaluating, and controlling dailyrisks. We also monitor and manage environmental, social, and government risks under this risk management organization structure.
SF Holding risk management organization structure
Risk Management
Committee
Company’s Risk Controland Compliance Of?ce
Uni?ed operationAssessment
Company functions,BG/BU and subsidiaries, etc.
Overall managementorganization:
System optimizationand control
Risk Management
Working Committee
Strategy enactingorganization:
Strategy enactingand guidance
CRO
ReportFeedbackOptimization
Implementationorganization:
| Routine management |
and execution
We risk management across our entire business using special training and content on the IT platform. We use our own technology expertise to buildand upgrade the risk management IT system with six major modules and 27 functions. These include conventional risk control, crisis management, riskassessment, and a risk control model. Our risk management IT system covers all business groups and companies close to us. We add and optimize riskmanagement functions to our business IT system to ensure intelligent risk control at the business level.We focus on raising risk prevention awareness among employees, including course training, orientation sessions, and knowledge maps duringonboarding for new employees. We have also produced risk management induction courses and special training programs for those in high-riskdepartments, including online learning and examinations to improve employees’ risk control management capabilities.
1.3.2 ESG risk management
SF Holding has integrated ESG risks into our risk management process. Such ESG risks show up in strategic, legal, compliance, and operational. Wecategorized ESG risks into three levels and then formed an ESG risk information base. We have identified 15 secondary ESG risks in areas includingintellectual property, natural disasters, production and labor safety, and human resource management. Our ESG risk management structure is consistentwith our risk management organization structure. As the highest-level risk management organization, the Risk Management Committee is responsiblefor determining our ESG risk identification, prevention, and control. It also manages regulatory, reputational, and market risks related to climate change.
SF Holding ESG risk information basePrimary RiskStrategicLegal & complianceOperational
Secondary Risk
Overseas environmentalIntellectual propertyBusiness continuity
Human resourcesmanagementCorporate managementComplianceNatural disasterIdeological and moral
Property rightsResource preservationFraud & corruption
Information securityProduction safetySystems & toolsEmployment safety
Identification and response to climate change risks
Natural disasters are occurring more frequently due to the increase in extreme weather events, global warming, and other environmentalchanges caused by climate change. Such situations may have a significant impact on our express delivery and logistics transportationbusiness. It could also create physical and transition risks. Our existing risk information deposit already contains climate change-related risksincluding typhoons and rains, and some secondary risks like crew diseases, injuries or deaths.Like other types of risk, we identify and evaluate climate change risk in line with our risk assessment process. As the highest riskmanagement agency, the Risk Management Committee has a clear understanding of climate change risk and creates strategies to addressthem. The Risk Control and Compliance Office is responsible for preparing the overall risk report including climate change risks. It submitsthe report to the CRO, who then reports to the Board of Directors. For more climate change risk response measures, please refer to theAddressing Climate Change chapter.
2019 S.F. Holding Co., Ltd. Sustainability Report
顺丰控股 2019 年度可持续发展报告
SF Holding complies with all relevant laws and regulations. We are committed to maintaining our operational integrity by addressing major business ethicsrisks, for which our Board of Directors and Audit Committee are ultimately responsible. The Chief Audit Executive (CAE) manages our business ethicsaffairs and regularly reports to the Audit Committee. We created the 369 Code of Conduct for primary-level managers. It eliminates three violations ofbusiness ethics, requires six affairs to be made public, and establishes nine guidelines for managers to lead by example in business ethics management.
1.4 Business Ethics Management
Business ethics management structureWe identify potential business ethics risks using regular internal ethical risk assessments in each business department. Monthly meetings help us to agreeon improvement measures. Employees can consult the labor union, human resources, or other relevant departments with ethical concerns and reportissues through our hotline. These measures ensure that our employees’ behavior complies with regulations while deepening their understanding ofvarious regulations and requirements.
1.4.1 Internal integrity management system
SF Holding abides by the Company Law of the People’s Republic of China and the Anti-Unfair Competition Law of the People’s Republic of China.We have launched China’s Enterprise Anti-Fraud Alliance to promote integrity in the industry. We have enacted regimes including the SF HoldingAnti-Corruption Management System, Rewards and Penalty Management Regulations to standardize managerial responsibility for preventing briberyand corruption. Our SF Holding Integrity Handbook and Nepotism Avoidance Management Measures define bribery, corruption, conflicts of interest, andfacilitation payments to avoid conflicts of interest and dishonesty. We experienced no legal proceedings related to unfair competition or monopoly in2019.?Definition of bribery or corruption:
Commercial bribery, bribery, acceptance of bribes, and professional embezzlement as defined in lawsand regulations including the Anti-Unfair Competition Law and the Criminal Law.?Definition of conflicts of interest:
Personal activities and relationships that may affect employees’ objective and fair performance of theirwork responsibilities, such as operating the Company’s own business or with partners.?Definition of facilitation payments:
Cash or equivalents paid under guises including sponsorship fees, consulting fees, commissions, andexpense reimbursements.
Chief Audit Executive
Audit Committee
Board of Directors
We established an integrity management network comprising a three-tiered top-down integrity supervision structure and three lines of defense acrossour business operations. We also set up the Senior Executive Disciplinary Inspection Committee led by our Chief Executive Officer (CEO), Chief HumanResources Officer (CHO) and Chief Audit Executive (CAE), along with the Employee Disciplinary Inspection Committee. These committees are responsiblefor managing the integrity of senior management and other employees respectively.
Integrity practice supervision line
1.4.2 Anti-corruption measurement
We are committed to enhancing our anti-corruption countermeasures by building a complete value chain management mechanism comprising back-endrisk research, mid-level risk platform monitoring, and front-end audit project output. Data and technology drive an anti-corruption managementoperation that produce practical measures. Our closed-loop anti-corruption mechanism incorporates education, prevention, management, and penaltiesin areas including risk identification and incident handling. We promote a culture of integrity through publicity drives.
Creating a culture of honestySF Holding is committed to preventing violations through clear communication and guidance. Our Integrity Handbook and Chinese and English versionsof our Employee Handbook define our expectations for acceptable internal and external behavior, providing guidelines of what is considered acceptablebehavior with corresponding penalties.
Businessregions
Threedefense
lines
Business Owner\NetworkAudit positionStaff Relations Group of
Legal affairs,compliance,internal control,risk control, etc.
Headquartersmonitoringdepartment
| Group audit |
IntegrityPracticeSupervision
Business
regions
TrainingPreventionManagementOn board trainingCode of conductSigning a Letter ofCommitment to Anti-corruption
Fraud risk identi?cationAnti-corruption system constraints
Supervision of theDisciplinary CommitteeHandling of violations
Blacklist of the Company
Blacklist of the allianceHand over to judiciary
Front endMiddle endBack end
Punishment
2019 S.F. Holding Co., Ltd. Sustainability Report
顺丰控股 2019 年度可持续发展报告
Honest internal behavior:
Direct and frank communication, clean financial relations, reasonable use and protection of our assets, andavoiding conflicts of interest.Honest external behavior:
Honest customer service, positive and transparent supplier relations, protection of our reputation, and socialresponsibility.
SF Holding Employee Handbook in English and Chinese
We have established a system for communicating anti-bribery and corruption policies to employees. Our Honest SF Building Together targets basic levelemployees and our Honesty and Integrity Adherence to the Bottom Line addresses business district management. We publicize a culture of honestythrough online cases, training, and warnings about fraud cases. We organize anti-corruption on-the-job training for new employees and promote themto sign our Letter of Commitment to Anti-Corruption annually.Letter of Commitment to Anti-Corruption?Iwillrefusetoengageinanybribery,acceptanceofbribery,embezzlement,orotherimproperbusinessactivitiesduringmy
employment.?IwillrefusetoengageinanybehaviorthatconflictswiththeCompany’sinterestduringinemployment,unlesstheCompany’swritten
intention is obtained in advance.?Duringemployment,ifanyunitorindividualrelatedtotheCompany’sbusinessprovidesorrequestsanygiftstoanyone,Iwillrefuseit
on the spot and promptly report to the Company.In 2019, 87.9% of workforce signed the Letter of Commitment to Anti-Corruption and we delivered 9,738 hours of anti-corruption educationfor workforce.
Corruption risk identification and assessmentWe have organized an internal anti-corruption monitoring system in the form of a digital anti-fraud initiative and a Digital Audit Office. We usethe system to identify business fraud risks and detect corruption incidents. We use big data analysis to conduct regular bribery and corruption riskassessments. We export risk data to each business department for verification and feedback, which we use to build a risk monitoring model. Over timewe assess whether the risks have dropped to ensure closed-loop processing.
SF Holding’s annual integrity index is improvingSince 2018, we have surveyed all employees to produce an annual integrity index. In 2019, 242,275 workforces participated in the surveyand offered a positive evaluation of our anti-corruption work. The survey results show that 6.2% more workforces would report corruptionand other violations of our regulations than in 2018. The survey drew feedback from 12% than the previous year.
Initial replyGiving whistle-blowers the first replywithin 1 working day
Judging whether toinitiate an investigationthrough pre-reviewing
Assigninginvestigatorsto conduct theinvestigation
Compiling, assessingand publishing theinvestigation report
The Department of HumanResources gives punishmentor suggestions and checksthe implementation ofpunishment
Replying results to thewhistleblower
Pre-reviewingInvestigation
Issuing investigation
report
Handling ofpersons in charge
Result reply
Reporting and handling corruptionWe created our Reporting Management Measures to encourage suppliers, customers, and other stakeholders to support our clean operations. It offersfour reporting channels: hotline, a SFIM platform available 24/7, emails, and letters. The SFIM platform could accept an independent, reporting hotlineavailable 24/7. We also encourage each business district to improve our reporting channels, enhance our employees’ sense of trust, and encourage themto report problems. We reward employees for accurate reports in accordance with the Reporting Management Measures. Whistleblowers can receive upto 20% of the recovered direct economic loss, depending on their contribution.
Channels for Reporting ViolationsTarget GroupSFIMMicroservices – I want to reportAll internal workforcesHotline400-688-3783All internal workforces, third parties and other external stakeholdersE-mailsf5198@sf-express.comAll internal workforces, third parties and other external stakeholdersMailing addressAudit Department of SF HoldingAll internal workforces, third parties and other external stakeholdersSF Holding’s official website inmainland China
https://www.sf-express.comAll internal workforces, third parties and other external stakeholders
In 2019, workforce awareness of our reporting channels reached 87%, up 36% from 2018.We prohibit retaliation against whistleblowers in accordance with the Notice on Issuing the ‘Self-declaration of “842 Employees With No Worries’Independent Reporting Mechanism. The Notice clarifies that the heads of organizations are ultimately responsible for whistleblower protection andrequires them to take reasonable measures to guarantee whistleblowers’ basic rights and interests. All personnel involved in the reception, acceptance,and investigation of a report and subsequent disciplinary measures must protect the whistleblower’s personal information and the content of thecomplaint along with the whistleblower’s legitimate rights and interests.Investigation and handling of violationsWe follow the principle of unified management, centralized handling, and classified responsibilities. The Supervision Office of the Audit Departmentwill take the lead in coordinating violation handling. Each business district handles local complaints and transfers them to the Audit Department. Weestablished a closed-loop processing system to handle incidents from receiving reports, initiating investigations, issuing investigation reports, and handlingof persons in charge, to response and case settlement.
After investigating bribery or corruption, we issue a written investigation report. We discipline the person in charge according to the degree of violationsand Rewards and Penalty Management Regulations and check the enforcement of those disciplinary measures. We hand those suspected of illegalcrimes over to the judiciary authorities according to the relevant laws and enter them in the China’s Enterprise Anti-fraud Alliance blacklist. We removesuppliers that breach business ethics and other corporate integrity regulations from our qualified supplier resource pool as soon as we discover them andenter them in our Procurement Department’s Blacklist of Suppliers. We have established the Honesty SF platform to fight corruption. We also publish ourinvestigation results and disciplinary measures along with any judicial outcomes for criminal activity. We archive our procedures and results.We also created the Three Ones principle to ensure the effectiveness of the incident handling process. It requires each department in charge to respondto the whistleblower within one working day, confirm whether to initiate an investigation within one week, complete the investigation within one month,and reply to the whistleblower and publicize the results.
In 2019, SF Holding achieved a 100% effective reporting feedback rate. SF Holding handled 99% of these incidents within our
Three Ones parameters.
40$*&5:
Target
Human rights protection target: In 2020, workforces will receive more training on respecting human rights.Targets to reduce health and safety incidents: Prevent fire accidents; Prevent major casualty accidents; Reduce personalinjury accidents by over 10%, personnel safety index rises more than 10% in 2020 compared to 2019.
Policies
Employee Handbook (Chinese and English version)Regulations on Attendance ManagementOccupational Health and Safety Management ManualSafety Production Responsibility SystemFire Safety Management SystemRegulations on Safety Management of Logistics SuppliersRegulations on Safety Inspection, Hazard Identification, and Risk ManagementEmergency Preparedness Management System
Key Performance
IndicatorsDataTotal workforces522,912Workforces trained459,715Investment in workforces training130 millionWorkforces receiving financial support for degree555Labor union members150,000Percentage of female workforces13.9%Percentage of rural workforcesOver 80%Courier turnover rate20.9%Recordable injury rate0.004%Lost time injury rate (LTIR)0.005%LTIR trend based on 2018-37.5%
United Nations Sustainable Development Goals (SDGs)Responses in This Chapter
Goal 3: Good Health and Well-Being
We have set company-wide targets to reduce health and safety incidents andestablished a safety management system certified to ISO 45001. We also developedmeasures relating to transportation and storage to ensure the health and safety ofemployees.Goal 4: Quality Education
We provide financial support to employees for degree and certification studies,helping employees with continuous education for career development.Goal 5: Gender Equality
We encourage gender equality by prohibiting all forms of discrimination, expandingthe number of female employees, and providing exclusive care and welfare forfemale employees.Goal 8: Decent Work and Economic Growth
We provide suitable position and internship opportunities for veterans,disabled people, and college students to ensure decent employment and careerdevelopment for special groups.Goal 10: Reduced Inequalities
We organize industrial poverty alleviation activities to increase income in poor areasand reduce development inequality between regions.
2019 S.F. Holding Co., Ltd. Sustainability Report
顺丰控股 2019 年度可持续发展报告
2.1 Employee Care and Development
We consider employees as our most precious asset and protect their rights and interests indiscriminately. We also offer diversified training and a welfaresystem for each employee.Our express delivery business is growing rapidly each year, increasing our demand for human resources. Our demand for employees variesbased on time and geography, increasing our employee turnover rate in the express delivery operation. A flexible employment model not onlyprotects the rights and interests of employees and their career development, but also gives them sufficient autonomy to choose their job.This also stabilizes operations and reduces cost increases and service quality risks that would otherwise accompany increased courier turnover.Our workforce therefore comprises regular workforces and other workers in a flexible workforce model. We protect all workforces rightsindiscriminately.
2.1.1 Rights protection
Equal respect is one of SF Holding’s core values. We believe in treating each other equally and respecting and accepting others by patiently listening andunderstanding. We manage recruitment, training, promotion, welfare, occupational safety, and health equally cross all employment types, protectingtheir legitimate rights and interests, and providing a broad platform for their growth.Protection of human rightsWe act pursuant to domestic and international regulations including the Labor Law of the People’s Republic of China, the Law on the Protection ofMinors, the UN Global Compact, and the Universal Declaration of Human Rights. We have developed rules and regulations including the EmployeeHandbook (Chinese and English version), the Labor Contract, the Regulations on Employee Dismissal and the Measures for Management of NewEmployees. The Employee Handbook (Chinese and English version) prohibits child and forced labor, discrimination, and differential treatment. It mandatesmeasures including equal pay for men and women, limitation of working hours, protection of female employees’ rights and interests, and the promotionof employment for people with disabilities.Our labor union represents and protects the interests of all employees in accordance with the law. It has a Labor Dispute Mediation Committee, a WomenWorkers Committee, and an Expenditure Review Committee. It supervises the protection of our employees’ rights and interests and participates in relateddecisions. The labor union also offers suggestions to the management on increasing employee diversification, occupational health and safety, employeewelfare, and communication. By the end of 2019, we had signed 22 collective bargaining contracts with the labor union, including the Collective LaborContract, the Special Contract for Wage, the Special Collective Contract for the Protection of Rights and Interests of Female Workers, and the SpecialCollective Contract for Occupational Safety and Health.
Our commitment to human rights protectionSF Holding regards human rights protection as the minimum standard for an equal working environment. Our Employee Handbook (Chineseand English version) and Labor Contract make the following commitments to address labor rights in core operations, applicable to the entirecompany and its subsidiaries:
?Ensure equal opportunities: Treat and respect every employee equally. Do not treat any employees differently due to their rank or
position. Selections and appointments must follow the principles of fairness, impartiality, and openness.?Protect against discrimination and differential treatment: Prohibit discrimination on the ground of any legally protected
characteristics such as gender, nationality, beliefs, and age.?Prohibit the employment of child labor: Explicitly stipulate that persons under 16 years old are not allowed to be employed.?Collective agreements: Sign collective bargaining agreements through the labor union to protect the legitimate rights and interests
of employees.?Right to rest and vacation: All employees are entitled to paid leaves such as annual leave, sick leave, marriage leave and maternity
leave.?Prohibit discrimination and harassment: We prohibit disrespect to colleagues, verbal provocations, and other acts that do not
respect others, along with verbal harassment of colleagues, customers or external partners.?Privacy protection: Disclosure of any employee’s personal information to others is prohibited without the authorization of the
Company and the employee.In 2019, SF Holding had no major labor disputes and received no complaints on human rights issues.In 2019, our labor union had approximately 150,000 members. Collective bargaining agreements covered 20.7%
of workforce and 100% ofemployees had signed labor contracts.
As of the end of the reporting period, 12 of the 58 independent labor union organization areas of SF Holding had signed collective bargaining agreements.
We clarify working hours in our Employee Handbook (Chinese and English version), our Regulations on Attendance Management, and our LaborContract. Employees work eight hours a day and 40 hours a week. We have established an Irregular Working Hours System to serve employees withspecial working requirements. We supplement employees in some temporary and auxiliary jobs during periods of peak demand in the express deliverybusiness using third-party companies or direct recruitment of flexible personnel. This reduces the workload for employees and protects their rest andrecreation time. We or third-party companies sign legally compliant contracts with all temporary employees, and pay reasonable remuneration accordingto the regulations. We or the third-party companies will purchase employer’s liability insurance (including accident insurance) or work-related injuryinsurance for all temporary employees.In case of major restructuring or changes at SF Holding, we provide 30 days’ notice of labor contract termination to the labor union and all employees.We will consider suggestions from the labor union or employees before making a final decision on layoffs.Remuneration and performanceWe offer performance-based compensation and regard value creation as an incentive. We provide a competitive remuneration system for employees whocontribute high value. The Employee Handbook (Chinese and English version) specifies salary and benefits based on the employee’s position. We attractand retain our talent through differentiated and diversified incentive mechanisms.Our employee salaries consist of a base-level salary along with variable remuneration. The variable remuneration includes subsidies, benefits, and monthly,quarterly, semi-annual, and annual performance bonuses. The distribution cycle and performance evaluation standards for performance bonuses dependon the evaluation scheme for corresponding positions. We attract and retain outstanding talents and incentivize our core talent using the Employee StockOwnership Plan and Restricted Stock Incentive Plan, giving restricted stocks to core employees who play an important role in our future operation anddevelopment. For some talents, who cannot be involved into incentive pan due to the regulation limitation, we have created the Incentive Plan for StockAppreciation Rights, which grants virtual stocks to core talent working overseas. We pay the difference between the exercise price and the redemptionprice as an incentive.The Employee Handbook (Chinese and English version) lists our employee performance management practices, highlighting the close link betweenperformance and remuneration. Performance management takes into account both results and processes and is closely related to job responsibilities. Allemployees undergo regular performance evaluations and promotion appraisals. Monthly and quarterly evaluations focus on business performance whilesemi-annual and annual evaluations focus on comprehensive performance and ability. The evaluation results are linked with bonuses, salary adjustments,and career development.SF Holding’s talent retention measuresEmployees with outstanding performance evaluation results are our most important strategic resources. Our Regulations on the Managementof Outstanding Employees help us identify, develop, and retain talents while offering timely incentives.Measures we have taken to retain outstanding talent include:
?Specialtrainingorpersonalizedexternaltraininginadditiontoregulartraining.?Amentoringsystem.?Anadditionaltwodaysofpaidleave.?Otherspiritualandmaterialrewards.
2019 S.F. Holding Co., Ltd. Sustainability Report
顺丰控股 2019 年度可持续发展报告
Democratic managementWe encourage positive interpersonal and team relationships, practice democratic management, promote an open corporate culture, and encourageemployees to communicate with other employees, mentors, supervisors, and the labor union to make reasonable suggestions for the managementand development of the Company. Our Employee Communication Management Regulations define employee communication methods and follow-upmeasures. We have created four communication platforms enabling us to hear and address employee needs. Our labor union increases communicationbetween primary-level employees and management by organizing communication meetings.
In 2019, SF Holding accepted approximately 18,000 workforce communication and suggestion items with a resolution rate of about 93%.
Unionhotline
Union Represen-
tative
Visit &
Talk
UnionWeChatDesignated line communication bytelephone to meet employee needs, andprovide positive guidanceListen to employees’ voice just likea family member and offer timelysolutions
Pay visits at basic level to solve actualproblems for employees through one-to-one and one-to-many talks
Receive employees’ questions 24/7, makingcommunication more convenient for thosewho prefer to exchange ideas onlineSF Holding’s fourcommunication
platforms
We conduct annual employee surveys to understand and collect employee opinions and suggestions. We analyze and report on this data. We require alldepartments to make an overall improvement plan for raising employee satisfaction. We also publish the survey results and improvement plan across thewhole network so that employees can monitor our progress on improvements. We survey 100% of our workforce including both regular and part-timeworkforce. In 2019, the satisfaction rate of employee engagement survey result was 87%.
2.1.2 Recruitment and promotion
We plan our recruitment annually according to our development needs and labor market changes with diversification in mind. Female members occupyan important position in our Board of Directors. We recruit from different talent pools including fresh graduates, veterans, and people with disabilities. SFHolding was the only Chinese express company to be included on Forbes’ list of the world’s best employers 2018. In 2019, the courier turnover rate was
20.9%
.
SF Holding workforce data in 2019CategoryWorkforceTotal workforce
522,912By gender
Male450,106Female72,806By job function
Management (including primary-level employees)18,313Functional33,203Primary-level471,396By educational background
Bachelor degree or above34,729College degree83,641High school/technical secondary school and below404,542By age
Aged below 30236,703Aged 30-40224,313Aged 40-5057,572Aged over 504,324
Only covers couriers.
Due to the ?exible industry characteristics of the express logistics a combination of multiple workforce modes is usually adopted. The number of workforce here is the total
number of workforce serving SF Holding.
2019 S.F. Holding Co., Ltd. Sustainability Report
顺丰控股 2019 年度可持续发展报告
SF Holding employee diversity programWe value diverse talent and will never restrict recruitment or employment due to personal characteristics such as gender, region, nationality,religious belief, or economic capability. In 2019, over 13.9% of our workforce was female. We developed many excellent female workforceincluding primary-level management (branch managers) and female couriers. Over 80% of our workforce was rural. Our workforce on theChinese mainland spanned 53 nationalities.We targeted special groups including veterans, people with disabilities, and overseas employees in our recruitment to optimize our workforce,increase the local employment rate and demonstrate corporate responsibility.?Recruitingveterans
We support the resettlement of veterans by cultivating and complementing talent in cooperation with the military. We prioritizeemployment for veterans and offer them professional skills training and education opportunities after recruitment. We allocateoutstanding veterans to management positions. We recruited nearly 10,000 veterans in 2019.?Recruitingpersonswithdisabilities
SF Holding acknowledges the need for work and study among people with disabilities. We employ members of this community inless physically demanding environments like call centers to improve their quality of life through meaningful work. By the end of 2019,there were hundreds of people with disabilities working at SF Holding.?Localrecruitment
We recruit overseas operating personnel from their local area, employing them in areas including human resources, administration,finance, marketing, and operations. We benefit from their understanding of the local culture, market and policies. This also increasesthe local employment rate. We had nearly 1,000 foreign employees by the end of 2019.
SF Holding dual channel career development path
Basic/Novice
Experienced PersonCommissionerBasic ManagementHead of Outlets
ProfessionalHigh Commissioner/EngineerMiddle Management
Head of Regional
Functions
Field/industry Experts
ExpertSenior ManagementHead of Region/Division
Non-managementChannel P/TManagementChannel M
Employee promotionSF Holding has developed the Talent Promotion Management System and derived from it the Guidelines for Non-Senior Management Promotion and theOperational Guidelines for Senior Management Promotion. We clarify the promotion requirements for different categories of employee. Our promotionmechanism emphasizing value and contribution is a strong talent retention tool.We have established a two-channel promotion mechanism for employees: a management development channel for employees with certain managementabilities and a professional development channel to enable technical employees to become experts in various fields. This enables our employees toimprove their personal skills and gain professional experience.
2019 S.F. Holding Co., Ltd. Sustainability Report
顺丰控股 2019 年度可持续发展报告
2.1.3 Training and development
SF Holding is committed to offering mature training systems for employees. We established the SF Instructor Management System, SF Teaching MaterialManagement System, and External Training Management System to manage employee training. Our training concept addresses continual improvementsto our teaching material system, cultivation of our instructor team, complementing external and internal training, and the development of personalizedtraining.We created the SF University to build our training resources and platform, designing and implementing our key talent training programs. In 2019,120,828 of our new workforce received training.In 2019, we trained 459,715 workforces and provided 2,575,721 hours of off-line training. We conducted 22,285,007 online training sessions.We invested 130 million in training.
Online training refers to the number of knowledge, courses, blogs and live broadcast learning in the KMS learning platform. Of?ine training refers to the duration of class
hours in which employees participate. The data does not include special training in the business ?eld.
SF Holding workforce training data in 2019CategoryTraining coverage
Online training
sessions
Hours of offlinetraining per person
(Hours)By gender
Male89.7%17,202,6415.1Female85.2%5,082,3664.1By job function
Management employees (includingprimary-level managers)
97.1%4,118,81818.4Functional employees88.5%5,779,9785.8Primary-level employees88.8%12,386,2114.4
General training system
We have established an SF University ecological training system covering employee induction, promotion, and education. This training system andits content is open to all our workforces. We offer a wide range of training and employment opportunities, especially for college students and freshgraduates. We have in place a system of on-the-job tutors to match college students with suitable SF Holding tutors, who will provide guidancethroughout the training process. Tutors are also responsible for guiding college students in their transition from college to society, offering feedback ontheir training program performance.
SF Holding training system
College student programFresh graduates: transformation from “astudent” to “a member of workforce”Former graduates: assign special tasksto accelerate growth
New employeesAccelerate the integration ofnew employees
Leadershipdevelopment
Functionalprofessionals
Basic skillupgrading
Leadershipdevelopment ladderReserve/novice/on-the-job cycle
Focus on functionalsequenceExpand career width
Implant workscenariosReal-time dynamicbreakthroughI Attend University at SFEncourage employees to receivere-education
Create talent ecologySupport operations and strategic transformation
Pathleading
Self-development
SF Holding college students training program
The SF Holding training system helps fresh graduates transition from student life to the workforce and accelerates the growth of formergraduates.In 2019, we set up a training program for fresh graduates to conduct targeted training for management, functional employees, andbranch network employees over a one-to-three year period. The program helps college students to complete the transition from student toprofessional in four stages. At each stage, class teachers and student partners offer guidance and feedback. In 2019, this program trained 89management trainees, 427 functional trainees, and 163 operation trainees.
Stages of training program for fresh graduates
SF Holding leadership training systemSF Holding attaches believes in mutual growth with employees. We have established leadership training systems at the primary, middle, andsenior levels. The system combines training with on-site practice, teaching employees team leadership.Primary-level leadership training – XinFeng ProgramThe XinFeng Program combines online and offline training to create a training portfolio based on scenarios. It includes offline managementscenarios, business scenarios, and products/services. Trainees create their own training based on these scenario courses and training cases.Middle level leadership training – YuanFeng ProgramThe YuanFeng Program empowers trainees to overcome leadership challenges and cultivate an efficient management team. It offers acombination of online learning, offline centralized learning, and benchmark learning. It measures learning results through online tests,competition, and monthly performance evaluations.Senior level leadership training – LingFeng Program
The LingFeng Program enables trainees to exchange management and business experiences and to explore business pain points andopportunities using offline learning and exchange classes. It facilitates mutual understanding and integration between business organizations.The program also enables senior management personnel to maintain their market insight and understanding of customers in a competitiveenvironment.
LingFeng ProgramYuanFeng ProgramXinFeng Program
Students are guided tostudy before work throughinternship in the post ofreceiving and dispatching, thepost of warehouse keeping orthe post of new business
Through induction trainingand “integration” qualitydevelopment, help collegestudents change their rolesand get ready for induction
Through on-the-job and on-the-spot study, build pro-fessional strength, increasepost competence and createworkplace advantages
Pre-stageFirst stage
Second andthird stages
2019 S.F. Holding Co., Ltd. Sustainability Report
顺丰控股 2019 年度可持续发展报告
Support for degreeAcademic study and certification have become key to individual competitiveness. In order to help employees and the Company to achieve commonand together sustainable development, SF Holding actively promotes the optimization of internal talents’ ability within the Company and encouragesemployees to participate in improve academic degree promoting education and skill certification. By doing this, SF Holding could for improvingemployees’ satisfaction and sense of belonging.By the end of 2019, SF Holding had supported 555 workforces in their degree studies, the total investment was 4,622,686.
The I Attend University at SF program supports further studySince 2016, SF Holding has launched the I Attend University at SF education program, which enables them to earn a higher degree whileon the job via several channels including MBA, self-study examination, adult college entrance examination, and TV university. We reimburseemployees who obtain academic credentials proportionately according to SF’s Application process for External Training .
Targets to reduce health and safety incidents:
Prevent fire accidents;Avoid major casualties;Reduce personal injury accidents by over 10%, personnel safety index rises more than 10% in 2020 compared to 2019.
Training management platformWe have established a knowledge management system (KMS) to store and manage knowledge harvested from programs, plans, achievements, andexperiences as part of our knowledge pool. We upgraded the KMS in 2019, enhancing the management of knowledge assets and providing anintegrated knowledge and learning management scheme.In 2019, 51,217 person-times per day on average attended the online courses on KMS. There were 1,254 courses launched per month and674 live broadcasts released on average, which received 160,000 times views.We created the Xiao Mi Feng app as the main learning platform for couriers, who are often under significant time pressure. Much of its training contentcan be read in under a minute and is precisely targeted to each courier’s needs. Couriers can also receive more in-depth skills and system training in areasincluding express safety education, customer communication skills, and our customer privacy protection and employee anti-corruption systems.
2.1.4 Occupational health and safety
We care for people and put safety first, abiding by laws and regulations including the Law of the People’s Republic of China on Production Safety, theLaw of the People’s Republic of China on Prevention and Control of Occupational Diseases, and Measures for the Management of Emergency Plans forWorkplace Safety Accidents. Our workplace safety system and policy help us to manage safety risks, hazard identification and rectification, and safetytraining.
In 2019, our personnel safety index
rose to 900, while the work-related injury index fell by 25%, exceeding our target. Our total recordableinjury rate was 0.004%, and the lost time injury rate (LTIR) was 0.005% which is 37.5% lower than in 2018. For full information on theperformance of occupational health and safety management, please refer to the ESG Key Performance Table.
Personnel safety index = average number of employees/accident coef?cient
Occupational health and safety management framework
Safety ProductionExecution Group
Safety ProductionExecution Group
SafetyProductionDirector
Safety Supervisor
District Safety
ProductionCommittee
Transit Depot
Safety ProductionManagement
Group
Head quartersSafety ProductionCommittee
DistrictDepartment
Headquarters
Primary-levelDepartment
LTIR Trend
0.000%
0.002%
0.005%
0.004%
0.006%
0.008%
0.008%
0.005%
0.010%
201720182019
Health and safety management systemOur three-tier safety management framework comprises our headquarters, regions, and basic level units. Its full-time occupational health and safetymanagers developed a Safety Production Responsibility System. We defined the managerial responsibilities for health and safety issues at all levels:
?TheHeadquartersSafetyManagementCommitteeisresponsiblefordevelopingmediumandlong-termsafetyplans,settinghealthandsafety
targets and establishing safety measures. The CEO is ultimately in charge of workplace safety, responsible for providing safe and healthyworkplaces and activities to prevent injury and health issues. He assumes the highest responsibility for workplace safety.?ThepersoninchargeofoccupationalhealthandsafetymanagestheoccupationalhealthandsafetymanagementsystemonbehalfoftheCEO,
analyzing and summarizing safety operations in the current month or every quarter. He also participates in investigating and handling safetyaccidents and regularly reports to the CEO.?TheworkplacesafetymanagementgroupundertheHeadquartersSafetyCommitteeisresponsibleforcross-functionalorganizationofmajor
safety work items and coordinating the management of workplace safety.?TheRegionalSafetyCommitteecomprisesfunctionalmanagement.OurSafetyDirectormanagesthesafetyoffunctionallinestoimplement
safety requirements and improve the safety management system.?Thesafetyimplementationunitcomprisespeopleinchargeofvariousfunctions.Itisresponsiblefortheimplementationofdailysafetyworkand
for meeting occupational health and safety objectives.
2019 S.F. Holding Co., Ltd. Sustainability Report
顺丰控股 2019 年度可持续发展报告
We have established an occupational health and safety management system according to ISO 45001:2018 (GB/T45001:2020). It covers our expressservice and has been certified to ISO 45001. Our Occupational Health and Safety Management Manual defines the scope of the safety managementsystem, which includes stakeholders such as customers, employees, suppliers, and market supervision departments.We track safety performance data and conduct internal health and safety audits at least once every year to ensure the effectiveness of the occupationalhealth and safety management system. This lets us evaluate our performance against safety objectives and the effect of system implementation topromptly identify and correct problems. The internal audit is led by CHO, the audit team is responsible for the verifying the correction of the health andsafety measures. We continuously improve the occupational health and safety system based on the results of internal audit. In 2019, combining theresults of internal audits and national policy requirements, we updated the health and safety policies timely to maintain the applicability and advancementof our policies. We last updated the occupational health and safety policy in March 2020.In 2020, SF Holding was certified to ISO 45001:2018 (GB/T 45001:2020).
Safety management measuresWe have established systems including the Measures for the Safety Management of Operation Vehicles and Drivers, Fire Safety Management Systemand Measures for the Management of Fire-fighting Facilities and Equipment on Property Sites to manage safety in transportation and shipment. Ouremployees must sign the Workplace Safety Responsibility Letter every year, which holds them responsible for safety. We also link safety and healthperformance to executive bonuses. For example, major safety accidents affect executive performance and remuneration. The safety index represents10%-15% of the performance evaluation for regional leaders and human resources managers. We also hold a safety evaluation meeting monthly orquarterly to analyze and summarize the safety operation situation. It outputs the analysis summary as reporting on health and safety programmes andperformance, which includes analysis of problems in the implementation of safety measures and process mechanisms, to effectively improve safetymanagement.We concentrate on occupational health and safety management among our suppliers and have developed Regulations on Safety Managementof Logistics Suppliers. We have signed safety management agreements with suppliers, including the Safety Management Agreement for LogisticsHandling and Sorting Services and Safety Management Agreement for Cargo Transportation Services by Road. We have also detailed the relevant safetymanagement contents in our contract terms guided by practical business scenarios, standardizing safe supplier operations and measures to deal withcasualties.In 2019, SF Holding invested 56.51 million in safety production.
证书编号：26920S00216R0M兹证明深圳顺丰泰森控股（集团）有限公司
统一社会信用代码：91440300678554111W地址：深圳市前海深港合作区前湾一路1号A栋201室生产/经营场所：深圳市南山区粤海街道软件产业基地1栋B座8楼
建立的职业健康安全管理体系符合标准GB/T45001-2020idtISO45001:2018认证覆盖的业务范围快递服务运营管理所涉及的职业健康安全管理活动颁发日期：2020年04月08日有效日期：2023年04月07日首次发证：2020年04月08日换证日期：******
Prevention of safety risks.We identify the key safety risks associated with express transportation and shipment. We use targeted measures, safety insurance, and technology toprevent safety risks and protect employees.Vehicle safety. We ensure fleet safety by inspecting our vehicles against 17 items across five categories. Our Marvin vehicle safety management platformincorporates a traffic safety prediction model that uses big data to integrate over 130 safety dimensions’ data including dangerous driving behavior,historical accident causes, and safety training. We collect vehicle and driving behavior data through our driver monitoring system (DMS) to identify riskfactors including fatigue, distraction, speeding, driving too close to the vehicle ahead, and changing lanes. This enabled us to correct dangerous drivingbehaviors in real time. By the end of 2019 we had equipped 36.7% of our vehicles with ADAS and DMS. We factor accident records and safe drivingmileage into our drivers’ performance evaluation to raise safe driving awareness and reduce traffic accidents.
Vehicle safety risks identified by Marvin PlatformAviation Safety. We established a Safety Management System to ensure aviation safety. Our air transportation has operated safely since its first flight,totaling approximately 346,000 hours. In 2019, the Civil Aviation Administration of PRC named us Safety Responsibility Compliance Entity in Central andSouth China for the tenth consecutive year.Storage Equipment Safety. We have developed operating guidelines including Safe Operation of Belt Conveyor (Sorting) and Safe OperationProcedures for Forklifts to ensure the normal operation of belt conveyors, automatic sorting machines and other equipment. We invested special funds inthe development and design of operations equipment and personal protective equipment (PPE) to improve the employee safety.Storage Site Safety. We standardize on-site electricity and fire safety according to the Fire Safety Management System and the Measures for theManagement of Fire-Fighting Facilities and Equipment on Property Sites. We also established a fire emergency leading group and a voluntary fire brigade.Self-inspections happen at least once a month with special inspections at least twice a year to ensure on-site safety management.We also provide all-round safety insurance for employees including employer liability insurance and employee critical illness insurance. Employeessuffering work-related accidents are covered by both employer’s liability insurance and accident insurance. Work-related injuries due to occupationaldiseases are covered by employer’s liability insurance. The labor union also represents employees’ interests and negotiates with management onoccupational health and safety-related matters. In 2019, employees raised the issue of PPE supplies and the labor union arranged a solution with therelevant regional departments.
Advanced DriverAssistance System
?Vehicle-to-vehicledistancedetection and alarm?Earlywarningofcollisionwith the vehicle in front?Earlywarningofcollision
with pedestrians?Lanedeparturewarning?Vehiclespeedlimitalarm?Warningofcollisionwiththe vehicle in front in a city
?Eyeclosureorlineofsightdeviation?Yawning?Abnormalposture?Violationofrules:Smoking?Talkingonthephone?Notwearingaseatbelt
?Suddenacceleration?Suddendeceleration?Suddenchangeoflane?Speeding
?Runningaredlight?Goinginadirectionnot allowed by trafficregulations?Occupyingamotorway?Notwearingsafetyhelmet?Talkingonthephone
?Monitoringofdrivingblind
area
Driver MonitoringSystem
Radical DrivingBehavior Monitoring
Delivery VehicleIdentification of lllegalDriving Behavior
Driving Blind AreaMonitoring
Hazard identification and risk assessment
Hazard identification is a fundamental task in corporate safetymanagement. We developed the Regulations on Safety Inspection,Hazard Identification, and Risk Management. We identify potential riskfactors in various positions and ask the relevant departments to rectifythem in a stipulated time limit requirement.SF Holding collates regional hazards and reviews various risk controlmeasures, evaluating and classifying risks from multiple dimensions suchas the status of control measures, the frequency of personnel exposureto hazardous environments, and the consequences of accidents. We thenissue a list of identified hazards and corresponding risk control measures.In 2019, daily and special safety inspections covered 10,687 sub-stationsand 193,714 vehicles. We identified and rectified 56,832 hazards.
Safety hazard identification and rectification
management
Communication and recordsSupervision and inspection
Risk assessment
Identification of the riskmanagement environmentRisk identificationRisk analysisRisk assessmentRisk handling
2019 S.F. Holding Co., Ltd. Sustainability Report
顺丰控股 2019 年度可持续发展报告
Safety awarenessSF Holding emphasizes training of employees on safety awareness, and continuously improves the emergency preparedness programmes. In order toprevent safety accidents, the Company implements targeted safety training measures, standardizes the safety training content to, and effectively raisesemployees’ safety awareness and skills to prevent safety accidents.Emergency response capability. SF Holding has established emergency preparedness programs for internal and special abnormal events. OurEmergency Preparedness Management System clarifies our emergency management actions from early warnings and emergency treatment to subsequenthandling. It defines the contents of emergency preparedness awareness initiatives and drills to enhance our employees’ emergency preparedness.
Under the emergency preparedness program is a three-level emergency rescue management system comprising emergency preparedness, specialemergency preparedness, and an on-site treatment plan. The system introduces the Internet + Safety Risk Management concept and includes an accidentresponse information platform to handle safety accidents quickly and properly and enhance our emergency rescue capability.We have designed our emergency response process in line with our Emergency Preparedness Management System. We conduct regular response drillsand revise these measures as necessary. In 2019, we conducted 1,339 emergency drills covering traffic safety, site fires, special equipment accidents, andinjury accidents.In 2019, we experienced 0 major fire accidents and 0 level one or two accidents on our sites.
Emergency Preparedness Programs
Emergency Preparedness
ProgrammesInternal abnormal eventOperational anomalyExpress delivery safetyanomaly
Abnormal transshipmentequipment
Transportation anomaly
Customs anomaly
HR anomaly
Comprehensive anomaly
External coordinationanomaly
Financial anomaly
Data anomaly
Natural disasterresponse planBusiness peakresponse plan
Response plan forlarge-scale events
Non-Operational anomaly
Special abnormal event
Health and safety training programs
Our Regulations on Safety Education and Training Management specify three types of training, covering new employees, special operators such as vehicleand special equipment operators, and regular training for all employees. It also defines written and practical assessment tests to enhance employees’awareness and safety risk control abilities.In 2019, our safety training covered 100% of the workforces. We organized 35 on-the-job safety training sessions for drivers and nine on-the-job training sessions for couriers. Each training session for drivers covered about 25,000 trainees, and each session for couriers covered about340,000 trainees.We also release all kinds of safety information via channels including our SFIM Official Account, our Xiao Mi Feng app, a safety knowledge map, a safetyreminder on the start page of couriers’ HHT
, and safety signs. We use various forms of text, pictures, and videos to raise employees’ safety awarenessand create a conducive environment for workplace safety.
The “HHT” system is a set of data acquisition and transmission system that connects mobile phones or PDA terminals as carriers for data storage to bar code scanningguns.
Safety knowledge sharing
2.1.5 Welfare and care
SF Holding has implemented employee care systems including the Welfare Management System for Employees of Express Business Group, SupportingManagement Guidelines for Employees with Severe Diseases and Emergency Care, and Handling Mechanism for Employees. They protect employees’rights, offer welfare and care, and help them to achieve work-life balance.In 2019, SF Holding showed solicitude for over 1.61 million workforces and their families. We devoted 67.7 million for workforce concern.In addition to statutory welfare and social security, we provide 24-hour accident and serious disease insurance and Shun e Million-yuan Medical CareInsurance for employees and their families.SF Holding devotes itself to building an all-round, multi-channel and diversified welfare care system for employees, which provides welfare carethroughout whole employment life cycle of employees. Based on the fundamental welfare care like employee birthdays welfare, holidays and anniversarywelfare, etc., SF Holding builts “NuanFeng Program” welfare platform for employees.
2019 S.F. Holding Co., Ltd. Sustainability Report
顺丰控股 2019 年度可持续发展报告
Our NuanFeng Program welfare platform helps us care for employees during their entire time with us. It comprises three modules: NuanFeng E-HOMEoffers preferential discounts on high-quality medical, food, housing, and education products. NuanFeng Health offers mental health care throughthe NuanFeng Health hotline, NuanFeng lecture hall, NuanFeng mind decompression chamber, and NuanFeng news. Fengba Club is an online hobbycommunity platform for our employees helps improve their work-life balance.By the end of 2019, Fengba Club had 5,000 members within 12 clubs and had organized over 480 club activities throughout the year.
We offer exclusive welfare services for female employees and those with disabilities. We distribute exclusive welfare gifts to female employees on March8 every year and organized 240 lectures focused on female employees’ mental health and career development in 2019. We also provide parental leave toemployees in accordance with national regulations. We give specific care and subsidies to eligible disabled employees and those with major illnesses.
For Layout only
Highlights of SF Holding employee activities in 2019?Running Forward for Dreams on SF Holding’s 26th anniversary: In late March, we celebrated our anniversary by launching
large-scale online and offline cultural activities for all employees to enhance staff cohesion.?My Days of Struggle at SF Holding video contest: We held a full-network video contest from July to September to enrich our
employees’ spare time.?Team-building activities: From August to September, various departments, BGs, and BUs organized team-building activities.
Fengba Club – Taekwondo ClubFengba Club – Music Club
Fengba Club – Football Club
2.2 Philanthropic Donations and Support
SF Holding engages heavily in community support and philanthropy, encouraging employees to participate in volunteer activities. In 2012, approvedby the Ministry of Civil Affairs, SF Holding’s controlling shareholder and the company’s subsidiaries founded SF Charity Foundation, which is a non-public offering foundation. To better support philanthropic efforts, SF Charity Foundation made regulations including the Articles of Associationof SF Charity Foundation and the Management System for Public Welfare Projects of SF Charity Foundation. SF Holding focuses on education,medical assistance, poverty alleviation, and disaster management with its advantages of logistics. We promote equality and balanced developmentamong communities by helping vulnerable communities and groups. In 2019, none of our operating sites had significant negative impacts on localcommunities. For more information on SF Holding’s philanthropies, please refer to the 2019 Work Report of SF Charity Foundation: http://www.sfgy.org/newsInfo?id=558&moduleId=14In 2019, the SF Charity Foundation spent 92,448,564.6 on public welfare, involving 5,414 volunteers and 56,021 hours of volunteer service.
2.2.1 Support students
SF Lianhua Student Assistance Program is one of SF Charity Foundation’s major educational programs. Launched in 2012, it offers financial assistanceand programs including summer camps, dream sharing meetings, class teacher plans, and companion and nurturing plans to poor high-school students.It earned the title Public Welfare Project of the Year in Education with the Greatest Social Influence during the 2019 Shenzhen Education Reform andInnovation Award. SF Charity Foundation invested over 40 million in supporting poverty students during 2019, helping over 7,000 people.
SF Lianhua Primary School Program
SF Lianhua Student Summer Camp 2019
2019 S.F. Holding Co., Ltd. Sustainability Report
顺丰控股 2019 年度可持续发展报告
2.2.2 Medical assistance
The SF Charity Foundation Medical Assistance Program helps with physical and mental development among orphans and poor children by treating threetypes of disease: congenital heart disease, hematological diseases, and malignant tumors. It facilitates early detection, early treatment, and early recoveryfor children through free diagnosis and screening, medical assistance, and care.
2.2.3 Disaster management
SF Holding is committed to providing disaster relief. From January 24 to March 11, 2020, we responded to the outbreak of the COVID-19 pandemicwith 190 rescue flights transporting over 4,600 tons of pandemic prevention materials. We arranged over 1,800 land transportation trips, moving over9,800 tons of pandemic prevention materials. We delivered over 100 million packages to Hubei. For more details, please refer to the SF Holding SocialResponsibility Report 2019: https://www.sf-express.com/cn/sc/download/20200324-IR-17-2019.PDF)
SF Nuanxin Medical Program
Loading COVID-19 pandemic prevention materials
2.2.4 Poverty alleviation
Our industrial poverty alleviation work revolves around our Fengnong Program, which supports local agriculture. It helps farmers to solve variousproblems across the entire agricultural process from crop planting to sales. It also contributes to rural revitalization.
2.2.5 Voluntary service
SF Holding calls on employees to participate in voluntary service for public welfare. By the end of 2019, we had established 19 volunteer associations.We also launched online SF Public Welfare Information Management System for volunteer management, providing an efficient channel for volunteeringinformation management and data exchange among fund managers, employees, volunteers, and beneficiaries. It integrates data on personnel, programs,and activities, allowing fund managers to understand program status and collect community feedback.
Fengnong Program Map
SF Holding Volunteer
GAP application methodHACCP application methodFood safety control
Business ?ow channelChannel sales capabilityProfessional agent purchasingProduction-sales matchingplatformOpen system capabilityBusiness system customizationConsulting and research servicesBusiness expansion
Establishment of cultivationmanagement standardsMonitoring andimprovement of cultivationEcologicalmanagementof cultivation
Integration of storageTrunk line resource integrationIntegration of distributionresources
Logistics supplychain
Integrated application of manureof fermented night-soil mixedwith waterIntelligent irrigation systemGreenhouse systemProduct traceability systemAgricultural big date
Technique ofcultivation
Establishment ofpretreatment centerProduct sorting standardProcessing standard
Food processing
Regional publicbrand buildingMarketing promotionof regionalagricultural products
Brand marketingplanning
Order loanCredit loan
FactoringWarehousereceipt pledge
Supply chain?nance
&/7*30/.&/5
Target
Emission reduction target for green packaging: By 2025, The Green Packaging MaterialProgram will reduce greenhouse gas emissions by 400,000 tons.Green transportation target: We will use 30% more clean energy vehicles for goodsdelivery by 2020.Air transportation target: By 2021, the ground-based gasoline and diesel consumptionwill decline 0.1%.
Policies
Emission Reduction Reward and Punishment SystemWaste Oil Management RegulationsOperation Plan and Management Measures for Clean Energy vehicles in the FieldMeasures for Office Space Management
Key Performance
IndicatorsDataReduced greenhouse gas emissions through green packaging36,000 tonsReduced greenhouse gas emissions through green transportation67,000 tonsRenewable energy generation capacity1,296,826.4 kW·hTotal greenhouse gas emissions1,280,462.5 tCO
eGreenhouse gas emission intensity11.4 tCO
e/million revenueUnited Nations Sustainable Development Goals (SDGs)Responses in This Chapter
Goal 6: Clean Water and Sanitation
SF Holding requires that wastewater discharge conforms to relevantnational standards and has implemented systems including Measures for theManagement of Water and Electricity. We avoid the large-scale use of waterresources and water pollution in our own operation.Goal 7: Affordable and Clean Energy
SF Holding has developed photovoltaic (PV) power generation projects inYiwu and Hefei Industrial Parks. We also purchase clean energy vehicles andcharging equipment to form a clean energy fleet.Goal 11: Sustainable Cities and Communities
In our pursuit of a waste-free city, we have developed a series of circularexpress containers including Feng BOX, built a circular operation platform fordata management, and worked with partners to create a circular ecospherefor express packaging.Goal 12: Responsible Consumption and Production
We promote green packaging and recycling to make logistics moresustainable.Goal 13: Climate Action
We have identified the climate change risks related to our own operationsand adopted energy-saving and emission-reduction measures for industrialtransformation and green development. We also help to create nationalpolicies related to climate change.
2019 S.F. Holding Co., Ltd. Sustainability Report
顺丰控股 2019 年度可持续发展报告
3.1 Developing Green Logistics
We pursue green logistics to support our environmental protection goals and our economic and social activity. We have implemented a plan to reducegreenhouse gas emissions across the logistics life cycle using green packaging, green transportation, and green shipments. We began establishinga certified environment management system in 2019 to help us implement our environment management policies and commitments and reach ourenvironment targets. We will complete this system in August 2020.In 2019, there was no event of violation of environmental laws and regulations happened.2019 saw us conduct the first group-wide accounting of greenhouse gases and other environmental data. We consumed 4,540,461,748.0 kW·h duringthe year, and emitted 1,280,462.5 tCO
e of greenhouse gas at an intensity of 11.4 tCO
e/million revenue. We will expand our reporting scope in thefuture to include leasing and upstream and downstream industrial operations.
3.1.1 Green packaging
We are committed to the development and application of sustainable packaging products through packaging R&D, testing and design. We haveestablished three R&D channels covering the recycling, reduction, and reuse of packaging products. We also created a reduced packaging scheme and asustainable packaging recycling system. We cooperate with upstream and downstream industrial partners including packaging material manufacturers,logistics enterprises, consumers, and recycling enterprises, to promote the development of green packaging.
In 2019, our Green Packaging Material Program reduced greenhouse gas emissions by about 36,000 tons.
Green packaging target: The Green Packaging Material Program will reduce greenhouse gas emissions by 50,000 tons in 2020. It will reducegreenhouse gas emissions by 400,000 tons in 2025 based on 2020 levels.
SF Holding packaging material consumption in 2019Packaging CategoryPackaging MaterialUnit2019Paper packaging materials
Express envelopeskg77,556,302.1Waybillskg18,569,099.2Cartonskg235,122,326.8Plastic foam packaging materials
Plastic bagskg21,099,363.4Scotch tapekg23,360,289.1We have advanced green reforms in logistics areas including express delivery, cold chain, heavy goods, and special goods. In 2013, we established SFSustainable Packaging Solutions to explore packaging standardization. In December 2018, the State Post Bureau created and issued the Green PackagingGuide for Express Delivery Industry (Trial). On January 19, 2020, the National Development and Reform Commission and the Ministry of EcologicalEnvironment issued the Guidelines on Further Strengthening Plastic Pollution Control. SF Sustainable Packaging Solutions became a Sustainable PackagingSolutions Service Center (SPS) in 2018.
Green Packaging ProgramAt the beginning of 2019, SF Sustainable Packaging Solutions set a target of reducing greenhouse gas emissions by about 36,000 tons. It also madeplans to accomplish this target through three measures: reduced packaging, recycled packaging, and using environmentally friendly packaging materials.Modular cartons and Feng BOX played an important role in this effort.Completion of Green Packaging Target for 2019: In 2019, SF Holding saved 12,344 tons of raw paper materials and 19,620 tons ofequivalent carbon emissions through four major measures: Feng BOX, modular cartons, document envelopes, and electronic waybills. Weeliminated 5,142 tons of plastic and 16,408 tons of equivalent carbon emissions through gourd bubble film, plastic bags, and fasteningpackaging technology.
SF Holding green packaging measuresReduced PackagingRecycled Packaging
Environmentally Friendly PackagingMaterialModular cartonFeng BOXNew packaging planReduced thickness of plastic bagsBulking containerDegradable materialThinner document envelopesCage trolleyReduced SKU of wrapping filmCircular document envelopeTwo waybill sheets changed to one sheetwith the introduction of QR code waybillThree digital waybill sheets changedto two sheets with the introduction ofelectronic waybill
The electronic waybill changed from three sheets to two sheets: The waybill is changed from 3 sheets to 2 sheets, thus reducing the consumption of raw paper.
SF TechnologySustainable Packaging
Solutions Service
Center (SPS)
Further EnvironmentalProtection Project Team
Fengjing Program Team
Circular Container
Project Team
XinFeng Program Team
Cold Transportation
Project Team
Centralized Shipping
Project TeamSustainable packaging solutions service center management framework
2019 S.F. Holding Co., Ltd. Sustainability Report
顺丰控股 2019 年度可持续发展报告
Strengthened R&D innovationWe use scientific and technological innovation to fuel green development in the express delivery industry. In 2019, we filed for almost 200 packagingpatents, including over 20 patents directly related to reuse, plastic reduction, and green printing. We also won eight national green product awards.We cooperate with government departments and universities on green packaging competitions. We also contribute to national sustainabledevelopment-related standards in the express delivery and logistics industry.By the end of 2019, SF Holding had helped create five national and industry standards and helped revise of three national standards in greenpackaging aspects.
SF Holding University-Enterprise Cooperation Project promotes sustainable packagingSF Holding partners with universities to commercialize research. We worked with six universities on seven projects in 2018 and 2019 coveringpackaging material testing, the development of design systems, user experience improvements, materials research and fresh food research.Based on results from our second packaging design competition, we replaced EPE with pulp molding material and replaced single bags withten connected bags. This improved the packaging efficiency of jade bracelets in the professional jewelry market five-fold and increased ourloading capacity by nearly 50%.Reduced packaging: We launched the Fengjing Program in 2018 to develop green packaging solutions and carbon emission evaluation standards andimprove our resource usage efficiency using data-based management models. It adopts environmentally friendly materials and technologies to optimizeand upgrade the cartons, tapes, document envelopes, fillers, and woven bags most used in the express delivery network. In 2019, it saved over 30,000tons of carbon emissions, equivalent to 270,000 trees, electronic waybill utilization rate was 99.7%.
SF Holding reduced packaging project
ModularcartonPlastic bag forpackagingDocumentenvelopeFastenedpackageElectronicwaybillBubble film
By optimizing the box size and specifications, SF Holding saved about2,500 tons of raw paper, equivalent to about cutting down 2,800 tons ofcarbon emissions.By optimizing the proportion of three-layer coextrusion materials, thethickness of the plastic bag was reduced by about 10%, and the annualplastic consumption was reduced by about 2,000 tons, equivalent tocutting down about 6,500 tons of carbon emissions.By reducing the gram weight of white raw paper on grey background by10%, the raw paper consumption was reduced by about 3,500 tones,equivalent to about 8,800 tons of carbon emissions.By replacing bubble film wrapping with fastened package, about 500tons of plastic bubble film was saved, equivalent to about 1,500 tons ofcarbon emissions.By changing the structure from 3 sheets to 2 sheets, about 1,400 tonsof raw paper was saved, equivalent to about cutting down 2,000 tons ofcarbon emissions.By replacing conventional bubble film with gourd bubble film, about2,000 tons of raw materials was saved, equivalent to about 6,200 tons ofcarbon emissions.
Recycled packaging: Some cities are struggling with solid waste disposal issues. We developed four types of recyclable express containers as part of ourzero-waste city concept, including the Feng BOX, bulking container, cage trolley and circular document envelope. We built a circular operation platformfor data management and worked with stakeholders to create a circular model for express packaging to minimize the environmental impact caused byexpress operations.
The Modular Carton Project reduces packaging consumptionOur Modular Carton Project reduces the space between cartons and consignments by optimizing box sizes and specifications, maximizing theuse of carton space and reducing the consumption of raw materials while avoiding damage. As a key component of SF Holding’s reducedpackaging project, it has the following three advantages:
?Reducedusageofrawmaterials(thesamenumberofcartonsrequireslessrawpaper)?Spaceefficiencythroughneatstackingandaccuratepalletmatching?Suitableforautomaticstacking,layingafoundationforprocessautomationWe saved about 2,500 tons of raw paper through optimized box size specifications in 2019, equivalent to approximately 2,800 tons of carbonemissions.
SF Modular Carton
Feng BOX replaces traditional cartonsFeng BOX is a delivery box that the courier can reuse. It solves problems associated with disposable packaging such as cost, damage, andresource and operational inefficiencies.A Feng BOX can be used dozens or even hundreds of times. 10 million Feng BOXES will replace 500 million cartons, 1.4 billion meters ofadhesive tape, and 2.25 million cubic meters of filler. It has won 15 national patents and has been operating on a pilot basis in six cities (regions):
Beijing, Shanghai, Guangzhou, Shenzhen, Tianjin and Suzhou.
SF Holding’s Feng BOX
2019 S.F. Holding Co., Ltd. Sustainability Report
顺丰控股 2019 年度可持续发展报告
Environmentally friendly packaging material: We implemented our XinFeng Program using new technologies, materials, and models. In 2019, theprogram pioneered ink-free laser-engraved cartons in the express delivery industry. This technology eliminates printing ink while offering high-precision,fast processing and its text is not easy to wear. We have trialed 36,000 laser cartons across five regions. They will gradually replace traditional cartons tohelp us achieve our green packaging goals.
3.1.2 Green transportation
SF Holding uses energy conservation and emission reduction measures to curb express delivery’s environmental impact. We promote clean energy vehiclesin land transportation and offer customers green supply chain solutions. We have also increased our investment in energy-efficient air transportation byrenewing air routes, increasing direct flights, and reducing our usage of auxiliary power units.
Land transportation target: Purchasing and leasing 11,000 clean energy vehicles will enable us to put 30% more clean energy vehicles intoservice by 2020 compared to 2019, increasing our 67,000 tons of 2019 greenhouse gas emissions savings by 30%.Air transportation target: Ground-based gasoline and diesel consumption will drop 0.1% by 2021 compared to 2019.
SF Holding land and air transportation energy consumption in 2019
Unit2019Electricity consumption of land transportationkW·h74,324,061.4Gasoline consumption of land transportationL206,472.0Diesel consumption of land transportationL151,920,855.0Kerosene consumption of aviationt240,125.0Water consumption of ground aviationt39,557.5Electricity consumption of ground aviationkW·h4,072,429.9Gasoline consumption of ground aviationL94,105.8Diesel consumption of ground aviationL753,549.7Total GHG emissions of land and air transportationtCO
e1,237,414.0
Land transportation data covers the energy consumption in China mainland, Hong Kong and Macao. Ground aviation data covers the headquarters in Shenzhen as well as
the bases in Beijing and Hangzhou.Electricity consumption of land transportation covers self-operated new energy vehicles, four-wheel delivery vehicle. Gasoline and diesel consumption of land transportationcovers self-operated Operating vehicle.Kerosene consumption of aviation covers the energy consumption by SF Holding owned all-cargo aircrafts.Ground aviation gasoline usage is the gasoline consumption of administrative vehicles in the airport, and diesel consumption is the consumption of special operationvehicles in the airport.
Land transportationLand transportation is our most important mode of transportation and is a focal point in our carbon emission reduction effort. We have been purchasingnew energy minivans in bulk since 2015. We have also created our Fengneng team to implement and run clean energy projects, increasing investment inclean energy vehicles and forming a green transport fleet.SF Holding uses clean energy vehicles for all trips under 180km spanning branch lines, heavy goods collection and distribution, and ordinary goodscollection and distribution. We work with mainstream manufacturers for customized development of heavy goods collection and distribution vehicles,which entered into service in the first half of 2020. We also developed 4.2 meter and 5.3 meter clear energy light trucks for cold chain transportation.We are planning pilots of hydrogen fuel and extended-range light trucks for long endurance and cold area transportation in northern China. All therefrigerants used in our cold chain transportation are non-ozone depleting substances.By the end of 2019, we had deployed clean energy vehicles in over 150 cities in 22 provinces across China. We put 11,155 clean energyvehicles and 846 charger piles into use via lease or purchase.
SF Holding drives green supply chain development with technologyClean energy vehicles are a key tool in SF Holding’s green supply chain.?Green:Weparticipateingovernment-backedgreendemonstrationprojectsandtheformulationofindustrystandards.?Networks:Weobtaindataoncleanenergyvehiclesthroughthepilenetwork,enablingustooptimizeouroperations.?Intelligence:Weusedatatolocateandmonitorourpeople,vehicles,andgoodsthroughoutouroperations,combiningtheShunlu
platform’s transport capacity management capabilities for intelligent task assignment.?Sharing:Wesharedatawithcustomerandsuppliersystemsformoreefficientplatform-basedvehicleoperation.?ModelInnovation:Weuseinnovativesupplychainmodelsincludingreversecustomization,platform-basedprocurementandleasing,
financial leasing. and separation of vehicles and batteries.?CustomerValue:Connectedcleanenergyvehiclesofferbetter,greenerservicecapabilitiesupstreamanddownstreaminthesupply
chain.
We make last-mile transportation more efficient using electric tricycles and motorcycles to reduce fossil fuel consumption and greenhouse gas emissions.As of the end of the reporting period, we had put 53,000 electric bicycles and 137,000 electric tricycles into use. SF Holding has now launched the “twoor three rounds of vehicle delivery intelligent module system” project to further monitor and manage the operation and energy consumption data of thedelivery process.
For Layout onlySchematic Diagram of a technology-driven green supply chain
Green
Modelinnovation
Network
SharingIntelligenceCustomervalue
GreenTechnologyDriven Supply
Chain
Green demonstrationIndustry standard
Big data analysisDriving behavior analysisIntegration of physical objects,information and cash flowOverall solutionComplementarybusiness exploration
Full-process positioning andmonitoringIntelligent task assignmentReverse customization (autofactory)Financial leasing (finance)Vehicle-battery separation(battery)Platform-based purchasingand leasing
Data sharingOpen systemProcess connectivityPlatform-based operation
2019 S.F. Holding Co., Ltd. Sustainability Report
顺丰控股 2019 年度可持续发展报告
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Air transportation
SF Holding has taken various actions in terms of system, management, monitoring and measures to reduce the environmental impact from airtransportation.SF Holding complies with the requirements of the Energy Conservation Law of the People’s Republic of China, the Regulations of Guangdong Provinceon Energy Conservation, and the Interim Measures for the Management of Monitoring Carbon Dioxide Emissions from Civil Aviation Flight Activities. Weestablished the Regulations on Energy Conservation Publicity, Education and Training, the Emission Reduction Reward and Punishment System, and theEnergy Measurement Management System. In addition, we set up an energy-saving fund to commend and reward departments and individuals that havemade outstanding achievements in energy conservation.We established an aviation energy management framework by forming a leading group to direct the energy management working group and reviewits proposals. The working group develops specific energy management work plans and measures, analyzing aviation kerosene, gasoline, diesel, gas,water, electricity, and other energy data, and reporting progress to the leading group. We audit and verify annual aviation kerosene, water, and electricityconsumption data in line with Civil Aviation Administration of China (CAAC) requirements to ensure its accuracy. We report the audited data to theCAAC for inspection by relevant government departments.We established the SF Holding Aviation Greenhouse Gas Emission Monitoring System in accordance with the Interim Measures for the Managementof Monitoring, Reporting and Verifying Carbon Dioxide Emissions from Civil Aviation Activities. It audits observed fuel data and calculates the fuel usedfor each flight and the resulting emissions if the data is complete. If the Operation Control Department finds that the data record is incomplete, it willsupplement the data using evaluation tools such as QAR (Quick Access Recorder) data or air traffic control bills.By the end of 2019, we owned 58 all-cargo planes with an average age of 23.5 years. We are committed to building a green fleet with low energyconsumption and high efficiency. In 2018, we stopped purchasing 737 cargo planes and started phasing out the existing seventeen in our fleet. We alsobegan introducing 747, 757, 767 and other large new cargo planes. The proportion of new cargo planes in our fleet is increasing year by year. Comparedwith the traditional 737 cargo planes, the new cargo planes offer lower carbon emission when loaded and lower fuel consumption per ton per hour. In2019 we purchased one Boeing 747 cargo plane, three Boeing 767 cargo planes, and four Boeing 757 cargo planes. 747 cargo planes consume 50%less fuel than 737 models. 767 cargo places consume 45% less and 757 cargo planes consume 27% less.
The proportion of SF Holding’s own large models increased from 2014 to 2019
SF Holding aircraft fuel saving and emission reduction program in 2019SF Holding Airlines implemented the Fuel Saving and Emission Reduction Program in 2019 to reduce aviation kerosene consumption.?Controlofplannedlandingresidualoil:Consumptionincreasestounnecessarylevelsinaircraftcarryingtoomuchfuel.Wecanreduce
fuel consumption by reducing the amount of landing residual oil in our planes.?Straighteningflightroutes:Weimplementedstraighterflightroutesincoordinationwiththemilitaryandregulators,shorteningour
flight distance and cutting fuel consumption.?Flightaltitudeoptimization:Wereducedcruisingfuelconsumptionbyflyingatoptimalaltitudesasallowedbyexternalflight
conditions.?Refinedbusinessload:Wereducedthedisparitybetweenactualandestimatedbusinessloadtopreventaircraftfromcarryingexcess
fuel and reduce unnecessary fuel consumption.?Dynamicaircraftallocation:Wereducedwastedshippingspacebyallocatingaircraftmodelsbasedonthepredictedbusinessload.
This improved our efficiency and reduced energy consumption and cost.
Photovoltaic power station in Yiwu industrial parkPhotovoltaic power station in Hefei industrial park
We created the Waste Oil Management Regulations, which specifies the disposal of waste hydraulic and lubricating oil from aircraft maintenance.Maintenance personnel must manage stored waste oil in accordance with the Dangerous Goods Management Procedure. No tooling, parts, or oil mustspill from waste oil storage tanks. This avoids foreign object debris (FOD
) from waste aviation products.Energy saving and consumption reduction on the ground
We use vehicle monitoring, route planning, and clean energy vehicles to reduce energy consumption in our airport ground vehicles. We retrofittedvehicles to meet exhaust standards in 2019. We also developed the Operation Plan and Management Measures for Clean Energy vehicles in the Field andtrained staff in the use of clean energy vehicles.
3.1.3 Green shipment
SF Holding is building a green industrial park to reduce the environmental pollution from express shipment. We are improving our efficiency through thelayout of warehouse space.
SF Holding industrial park environmental data in 2019
Unit2019Water consumptiont326,459.5Waste generationkg12,331,681.4Renewable energy generation capacitykW·h1,296,826.4Electricity consumptionkW·h44,872,756.0Greenhouse gas emissionstCO
e36,494.5SF Holding has strengthened the use of renewable energy, launched a renewable energy program, and reduced greenhouse gas emissions. We also builtphotovoltaic power stations in our Yiwu and Hefei industrial parks.?ThesolarphotovoltaicpowerstationinSFHoldingYiwuIndustrialParkisadistributedphotovoltaicpowerstationwithatotalinstalledcapacity
of 723.84kW. It adopts a voltage level of 0.38KV and is connected to the national power grid system in a user-side grid connection mode wherethe power is generated for self use with surplus power transmitted to the grid. The project was officially put into operation in 2017.?ThesolarphotovoltaicpowerstationinSFHoldingHefeiIndustrialParkisadistributedphotovoltaicpowerstationwithatotalinstalledcapacity
of 792kW. It adopts a voltage level of 0.38KV and is connected to the national power grid system in a user-side grid connection mode wherethe power is generated for self use with surplus power transmitted to the grid. The project was officially put into operation in 2019.
FOD is a foreign substance, debris or object that may damage the aircraft.
Environmental data related to the Industrial Park cover SF Holding self-operated industrial parks in China main-land and Hong Kong. Environmental data for externaltenants in the industrial park is not included. The electric power and water resources consumed by the ground aviation of SF Airlines in South China HUB industrial park arealso excluded. This part of data is included in the table “SF Holding land and air transportation energy consumption in 2019” and “ESG Key Performance Tables”.
2019 S.F. Holding Co., Ltd. Sustainability Report
顺丰控股 2019 年度可持续发展报告
SF Holding Hong Kong industrial park certified as LEEDWe incorporated our green elements concept into the Hong Kong industrial park (Asia Logistics Hub – SF Holding Center) during the planningphase. We required the park to achieve operational energy conservation, waste reduction, and sustainable development targets. In 2016, SFHolding Hong Kong industrial park won the LEED-CS Green Building Gold Award.
LEED Certificate for SF Holding Hong Kong industrial parkSF Holding Hong Kong industrial park
Climate change is an issue that has attracted worldwide attention. Enterprises must evaluate the medium to long-term impacts of climate changeon production and operation to identify the related transition and entity risks. SF Holding is keenly aware that improving energy efficiency, reducinggreenhouse gas emissions, and coping with extreme weather are important sustainable development measures that will enhance our competitiveness.Based on feedback from air crew and land transportation personnel, we identified safety and operational risks from climate change factors includingthunderstorms, typhoons, extremely cold weather and greenhouse gas emissions. We have identified the following risks related to climate change:
Policy risk
The Paris Agreement has a long-term goal to restrict the average temperature rise to within 2 degrees Celsius from the pre-industrial level. Membergovernments will implement various policies and regulations to support this goal and capital markets and industry associations will follow suit. Thiscreates potential policy and standard compliance risks.Cost riskExpress transportation consumes a large amount of energy, including gasoline, diesel, and aviation oil. This consumption is one of the most importantsources of greenhouse gas emissions. As the world pays increasing attention to environmental protection, renewable energy has been given a higherpriority. Compared to fossil energy, renewable energy may require enterprises to purchase new transportation vehicles or retrofit existing ones, presentingpotential cost risks.Extreme weather risk?Transportationsafety:Duetoclimatechangeincreasesthefrequencyofextremeweathereventssuchasthunderstorms,rainstorms,hail,and
clear air turbulence, leading to volatile weather that affects transport safety.?Moretakeoffweightrestrictions:Astemperaturesrise,theatmosphericdensitydecreasesandtheliftforcegeneratedbythewingdecreases.
High temperatures prevent loaded aircraft from taking off safely at certain times, leading to partial unloading or delays.?Lowerflightpunctuality:Climatechangeincreaseslow-visibilityweather,causingsubstandardtake-offsandlandingconditionsthatincrease
flight delays.
3.2 Addressing Climate Change
SF Holding measures to tackle climate change risksParticipate in the formulation of standards and reduce policy risks: We help formulate and implement policies and standards in thepostal express industry and national transportation, and closely follow policy trends to avoid operational risks from policy changes.?Weattendedthe2019GreenFreightDistributionSitePromotionMeetingandtheThirdForumonUrbanNewEnergyLogisticsVehicle
Application and Development organized by the Ministry of Communications and the China Federation of Logistics and Purchasing,and made a keynote speech on experience promotion.?WeparticipatedintheReviewofGreenProducts,GreenModelsandGreenTechnologiesatthePostalIndustryeventorganizedbythe
State Post Bureau and the Development Research Center.?WeattendedtheSmartFreightForumonEfficientandGreenUrbanFreightorganizedbySmartFreightChinatodiscussthe
challenges China faces in achieving green and sustainable freight and explore potential solutions.Strengthen energy conservation and emission reduction, and reduce greenhouse gases: We adopt green logistics measures acrossthe entire package life cycle, including green packaging, transportation, and shipment. We purchase clean energy vehicles and implementenergy conservation and emission reduction programs for aircraft fuel. These measures improve energy efficiency and reduce greenhouse gasemissions from each package.Develop green supply chain and promote industry transformation: We offer customers circular packaging ecosphere and green supplychain solutions in areas including packaging and land transportation. We also work with upstream and downstream customers to enhanceenergy saving and emission reduction in the industry.Anticipate the weather changes and make early plans: We arrange our transportation operations based on data from the meteorologicalsystem approved by the civil aviation authority. SF Holding controls the overall flight operation via the operation control center, and pre-judgesweather via the weather seat
to ensure the safe and punctual operation of the flight.
Weather seat refers to the meteorological management department of Air Traf?c Management Bureau, which manages all kinds of support systems including radar, satellite
and service terminal. Its main responsibilities include the forecast and release of meteorological data.
2019 S.F. Holding Co., Ltd. Sustainability Report
顺丰控股 2019 年度可持续发展报告
2019 saw SF Holding launch many environmental protection campaigns including the SF Holding Creative Painting Competition of Changeable ExpressBoxes in Lianhua Primary School and Environmental Regeneration and Innovation Exhibition of Environmental Protection Creativity. We are committedto raising our employees’ awareness of energy conservation and environmental protection. We have established internal systems such as Measures forOffice Space Management and Measures for the Management of Water and Electricity to advocate for environmental protection among our employees.
3.3.1 Environmental activities
We are committed to advocating and promoting the development of green logistics. We promote environmental protection activities at all operationallevels using carbon neutral and carbon offset measures to reduce greenhouse gas emissions. We also also promote environmental protection concepts insociety.
3.3 Fostering Environmental Protection Culture
“Join carton recycling, plant a “tree” in our hearts-SF Holding carton recycling program
In August 2019, SF Holding launched carton recycling activities. SF Holding’s carton recycling program includes carton recycling and reuse, aswell as certain incentives for express delivery staff. While generating income for express delivery personnel, recycling cartons reduces pollutionand waste of resources.In October 2019, SF Holding established the carton recycling process and completed the development of carton recycling reports. We beganpiloting carton recycling in four regions in November, and began to promote it nationwide in February 2020. In 2019, SF Holding has collected163,000 cartons in total. From January to May 2020, SF Holding has collected 17,847,000 cartons in total, with an average of 193,000 cartonsper day across the entire network.SF Holding’ 2019 annual meeting was carbon-neutralAccording to third-party professional accounting, the carbon dioxide emissions and the implied greenhouse gas emissions from the SF HoldingAnnual Meeting 2019 were equivalent to 204 tons of CO
. We neutralized those emissions by planting 36 mu of carbon neutralizationforest in Shexian County, Handan City, Hebei Province, totaling 4,000 Platycladus orientalis. The planted carbon neutral forest is expected toabsorb at least 384 tons of carbon dioxide in the atmosphere as the trees grow in the future. These carbon-neutral afforestation activities willeventually absorb all greenhouse gas emissions generated during the SF Holding Annual Meeting 2019.
Carbon neutralization certificate for SFHolding 2019 annual meeting
3.3.2 Green office
We promote the green office, encouraging employees to be economical with resources. We have put in place internal systems such as Measures forOffice Space Management and Measures for the Management of Water and Electricity to ensure reasonable use of regional office space. We promotethe use of shared office spaces and remote offices to improve the efficiency of our office space. We promote environmentally friendly construction byrequiring that all materials used in small-scale decoration projects come with product certificates or material inspection forms. We also observe relevantgovernment regulations in areas such as noise pollution, decoration garbage, and waste disposal during construction.
SF Holding office and operation network 2019 environmental data
HeadquartersUnit2019Paper usedkg26,249.6Electricity consumedkW·h5,459,125.6Office waste producedkg1,528,800.0Water consumedt72,174.9Greenhouse gas emissionstCO
e4,567.7
Green office measuresAll our departments advocate green office practices including energy conservation and environmental protection. They promote energy conservation andenvironmental protection through awareness campaigns, use green construction techniques, and create a positive environment for green office work.We have installed intelligent management systems to reduce energy consumption. Our operations do not involve large amounts of water or wastewaterdischarge, nor do we develop products or businesses that pollute water resources.
Environmental data on SF Holding of?ce and operation network cover the sites used by SF Holding in Shenzhen Software Industry Base Building, Shenzhen Man KeeCommercial Building, Shenzhen Richinfo Technology Building and Shenzhen Chuangzhi Tiandi Building (collectively referred to as headquarters of?ce).In 2020, SF Holding will work to improve the collection methods of environmental data from its nationwide network and will gradually expand the coverage of data in thefuture.
By the end of 2019, SF Holding had installed energy-saving equipment at 19,576 sites throughout the network.
SF Holding intelligent control of electricity consumption in WenzhouSF Holding introduced the Andeli Power Monitoring System into 164 outlets in the Wenzhou area for point-to-point intelligent control, timelydiscovery of abnormalities, and identification of hidden dangers. This power management system allows for the dynamic monitoring andanalysis of energy consumption, enabling us to spot abnormal power consumption and identify energy-saving opportunities. As of February2019, this system had cut our electricity consumption cost by 206,700, saving about 380,000 kW·h.
SF Holding green office measures
?Developelectroniccontractsignaturesforthecontractprintingandstampingprocesswithmajorcustomerstoreducepaperusage.?Setthebrightnessofcomputerscreenstoanappropriatelevelandimplementapowerusagescheme.?Eliminatedaytimeandconstantlightingtomakefulluseofnaturallight.?Reduceenergyconsumptionofofficeandoperationselectricalequipmentinastandbystate.?Setairconditionertemperaturesto25-28degreesCelsiuswiththedoorsandwindowsclosedandswitchoffthepowersupplywhen
not in use.?Properlycontrolthewaterflow,avoidopeningfaucets,andclosethemimmediatelyafteruse.?Makepromptrequeststorepairdamagedwatersupplyequipment.
Environmentally friendly construction measures?Weusecommonlyavailablematerialsforsmall-scaledecorationworksintheregion.Allmaterialsmustcomewithproductcertificates
or material inspection forms.?Wedisposeofwastefromthedecorationprocessaccordingtogreenconstructionstandardsorrecycleitusingprofessionalthird-party
companies to minimize waste pollution.?Lampsatdecorationsitesareallenergyefficient.?Ourdecorationworkmeetslocalnoisemanagementrequirementstoavoidaffectingthedailylifeoflocalresidents.
&$0/0.:
TargetCustomer service dissatisfaction will be under 6% in 2020.
Policies
Privacy PolicyData Compliance Management SystemEmergency Plan for Information Security Incidents of SF HoldingGuidelines for the Formulation and Implementation of IT System Emergency PlanRegulations on Green Procurement Management of Procurement Supply Chain CenterSunshine Procurement Notification LetterKey Performance
IndicatorsDataMajor cybersecurity and information leakage incidents0Social Responsibility Clause signing rate100%Supplier Integrity Agreement signing rate100%United Nations Sustainable Development Goals (SDGs)Responses to This Chapter
Goal 9: Industry, Innovation, and Infrastructure
We innovate in all aspects of collection, transfer, transportation, and dispatchof express shipments, enhancing industry competitiveness through smartlogistics.Goal 13: Actions on Climate
We advocate green procurement, strengthening our environmentalprotection requirements for suppliers and emphasizing their operationalcompliance.
2019 S.F. Holding Co., Ltd. Sustainability Report
顺丰控股 2019 年度可持续发展报告
4.1 Service and Product Optimization
We continuously optimize our service quality to be customer-centric while protecting customer privacy and promoting product innovation. We offerour customers safe, fast, secure, and smart express delivery services. We adjusted our direction in 2020, focusing on customer complaints and WeChatcomments about our order processing. We acted to improve our service quality after conducting a root cause analysis.Customer service target: In 2020, SF Holding will achieve a customer dissatisfaction rate of under 6%.
4.1.1 Customer and service optimization
SF Holding has created the Rules for Rewards and Penalties of Customer Lines, Exception Handling Mechanism of Time Effectiveness, and DifferentiatedService for Customers. We explore customer service needs across different scenarios and design service plans suitable for different customers based onservice product and customer needs. We then specify the transfer operation guidelines for our couriers. We also operate a knowledge base for pre-salesand after-sales customer service to help ensure targeted high-quality services.We maintain a high-quality service team by integrating training course resources from our network and producing easy-to-understand online coursesaddressing operational situations. We assess customer service personnel according to metrics including the customer satisfaction rate, service error rate,postal appeal rate, and claims processing time. We use these assessment results along with incentives to improve service levels through performancemanagement.
SF Holding focuses on users with disabilitiesIn 2019, we took several steps to better meet the needs of users with disabilities in areas including ordering and posting. We optimized theaccessibility of our public WeChat account, official website, and WeChat applets, and invited feedback from users with disabilities. These userscan place orders and book express couriers through these channels. The WeChat public account and applets allow them to track waybills,modify delivery times, and change their forwarding address.
Disabled users placing orders
For Layout only
Strengthen communication with customers
We attach great importance to customer feedback and continue to broaden its collection and analysis using techniques including big data mining,platform analysis, monitoring of online social services, and satisfaction surveys. This enables us to spot and rectify problems.
In 2019, SF Holding received over 50,000 customer demands, with a 96% overall customer satisfaction rate, achieving 93% of the originaltarget. We ranked first in the satisfaction survey conducted by the State Post Bureau of the People’s Republic of China for the 11th consecutiveyear.
Delivery ServiceSurvey ContentsService for key customersSatisfaction with customer service regarding timeliness and problem-solving capabilitiesData BeaconFunctions of online toolsQuick prints and monthly statementFunctions of online toolsExpressOverall satisfaction of express operation and each linkSelf-posting and collection at branchesImage and service attitudeWeChat appletsFunctions of online tools
SF Holding 2019 delivery service satisfaction survey
SF Holdingcustomer servicesatisfaction
Big data mining
Customer
complaintsPlatform toolBack-groundfeedbackSocial network service
Regional input
Satisfaction survey
Experience SpecialistfeedbackMystery
guest test
2019 S.F. Holding Co., Ltd. Sustainability Report
顺丰控股 2019 年度可持续发展报告
4.1.2 Technology and product innovation
We continue to distribute a diverse range of products and build a smart logistics system to improve industry efficiency.
In 2019, SF Holding Technology invested 3,667.8 million in science and technology including 2,565.4 million in R&D.Diversified logistics productsBased on the diverse needs of different industries, customers and scenarios, SF Holding adheres to the product design philosophy of “customer-centric,demand-driven and experience-based”. The company focuses on each industry’s unique characteristics, and starts from the application scenarios toexplore customers demands under different scenarios within the end-to-end process and other personalized demands. Thus SF Holding is able to designsuitable products, services and solutions for customers. Vertically SF Holding enriches its product series with express delivery, economy express delivery,freight, cold chain and pharmaceuticals, intra-city instant delivery, international express and supply chain business. Horizontally SF Holding diversifiesproduct tiers to meet the needs of customers in more market segments. Meanwhile, SF Holding enables product innovation with technologies to createindustry solutions and provide customers with integrated comprehensive logistics services. Over the years, SF Holding has forged high-quality serviceexperience through continuous innovation to provide solid and strong support for customers’ success.Building a smart logistics system
Through technological innovations, SF Holding empowers the logistics industry with intelligent, digital, visual and customized transformation. SF Holdinghas independently researched and developed a complete set of smart network platforms, integrating SF Holding’s core operation systems (includingordering, receiving, transferring, transporting and dispatching), the SF Map platform, big data platform, information security platform, and smart O&Mmanagement platform. The set of all those platforms has covered all business segments and scenarios to enable business in a fast, flexible, safe andcomprehensive manner, and has promoted information interconnection of the whole logistics chain, which has created a smart and solid foundationfor the diversified business development of the Company. Moreover, SF Holding has also integrated internal resources, as well as internal and externaldata. The Company used big data calculation and analysis, operation optimization, artificial intelligence and other technologies to establish intelligentmanagement and intelligent decision-making platforms such as logistics operation analysis platform and business forecasting platform. By utilizing dataand technology the company makes decisions, operates and optimizes processes, which has increased the efficiency and scientificness of operation,created SF Holding’s “intelligent brain” and realized data-driven technology and technology-enabled logistics.
How technology powers an express delivery
Services
Technology
Place an orderTransfer
CollectTransport
Smart customer service
Online mailingFengmi waybill
NLPVoice recognitionMan-machine interaction
Digital platformAutomatic sortingMechanical gripper
RobotComputer visionEdge calculationEmbedded artificial
intelligence
Mobile electronic device
Digitized courierZhihui PackagingSmart scheduling
Internet of ThingsFacial recognitionImage recognition
Deep learning
Logistics mapPath planningNew generation of transportcapacity (un-manned aerial
vehicles, etc.)Route planning
Line pricing
GISAddress libraryVisual algorithmdynamic routing algorithmUnmanned aerial vehicle
technology
Ordering: Our address matching service supports the customer ordering process by helping users to complete their address entry, improving addressstandardization and user experience. We accurately identify customers’ intentions and automatically obtain key information through smart voiceinteraction and heuristic language design.Receiving and dispatching: We customized wearable smart Bluetooth headsets supporting voice wake-up and command interaction to help couriers intheir daily work. We use electronic waybills with encryption and hiding functions to protect customers’ private information and create a greener logisticsoperation. We provide diverse, smart choices for different packaging requirements through R&D of our traceable and recyclable Hive box, food andmedicine temperature control packaging systems, and professional heavy cargo packaging solutions.Transfer and storage: We have developed low-cost, reliable automatic sorting systems that offer 24-hour continuous high-speed package processingand reduced sorting error rates. We have also built a complete digital warehouse automation system supporting environments including cold transportand pharmaceutical warehouses.Better operation efficiency using computer vision technologyWe developed AI Argus, the first domestic smart video analysis product for the logistics industry. It traces detects damage and spots operationsviolations in real time, reducing the probability of damaged and missing items.
Identification of violationsTransportation: We improve our transportation efficiency using data mining technologies to match vehicles and goods. We have set up a network androute planning system that allocates transportation capacity and operation resources. We also use unmanned aerial vehicles to supplement our existingtransportation capacity and extend our service coverage.SF Holding used drones for ‘first kilometer’ matsutake deliveryIn 2019, we launched a delivery service for matsutake, a highly prized mushroom. We put over 100 unmanned aerial vehicles into the ’firstkilometer’ delivery of matsutake. From the mountains, it only took UAV 30 minutes for one-way loading, which increased the efficiency by overfour times, ensured the timeliness of product transportation and helped local communities to achieve industrial upgrading and development.
Action ratingCompliant goods arrangementDamage identification
2019 S.F. Holding Co., Ltd. Sustainability Report
顺丰控股 2019 年度可持续发展报告
Stimulate innovative breakthroughsWe pursue innovation in three ways: cultivation, generation, and application.In 2019, SF Holding won 1,235 innovative works and schemes, with 85.3% of the participants in various product innovation and activitysectors. Through the relevant intellectual property rights, SF Holding obtained over nine government-funded projects.
Intellectual property protectionWe created the Operation Guidelines for Handling Group Infringement Incidents and the Management System Trademark in accordance with the PatentLaw of the People’s Republic of China and the Trademark Law of the People’s Republic of China. These documents regulate patent management and theuse of company trademarks to prevent infringement. In 2019, we experienced no intellectual property right infringements.
By the end of 2019, SF Holding had obtained 1,005 patents, of which 328 were newly authorized in 2019. We ranked first in the domesticexpress delivery industry in terms of patent holdings.
SF Holding InnovationCompetition stimulatestechnical excellenceOur 2019 Innovation Competitiongenerated 135 innovation projects, ofwhich 63 were pre-research science andtechnology projects. We assessed theprojects over three rounds of evaluationon qualities including market value,innovation, value output, and technicalability. Six projects won the competition.
The roadshow for the final of the 2019 Innovation Competition
Innovationcultivation
Innovationgeneration
Innovativeapplications
Starting from improvingemployees’ basic innovationability and creating aninnovative atmosphere,SF Holding encouragesemployees to strengthenthe cultivation of innovativethinking and methodsthrough training, buildinga closed-loop platformfor discovering, digging,discussing and givingfeedback.
Through the micro-innovationof daily work and the annualinnovation competition,SF Holding provides aplatform for displayingexcellent innovationprojects, and makes useof high rewards and dailyincentive mechanisms to urgeemployees on innovation. Italso arouses experience, ideas,reusable tools and works forindividual work.
SF Holding pays closeattention to the establishmentof the intellectual propertymechanism. Throughtracking and sorting out eachproduct, it focuses on high-value intellectual propertyrights, so as to achieve 100%application of intellectualproperty rights beforetheplanned market - orientedproducts, and enhancethe application value ofintellectual property rights.
We have established an internal safety review mechanism to protect our core technologies. It includes approval levels designed for different technologylevels.We protect the copyright of our own products through online monitoring, offline actions, and other measures to crack down on piracy.?Online,wesearchforlinkstoproductswithfakeSFHoldingtrademarksandbrandsthroughmajore-commerceplatformsincludingTaobao,
Jingdong, and Pinduoduo. We complain to those platforms via the Group Material and Customer Service Departments to minimize the impacton our brand by deleting illegal links on the platform.?Off-line,werelyonlawfirmstospotindicatorsofpiracyincludingviolationsatphysicalstoresandtheuseofcompanynamesinvariousregions.
We protect our rights by issuing legal letters and filing complaints with the local market supervision and administration authorities.Intellectual property training. We strive to protect property rights, train employees, and communicate IP-related laws and regulations through on-sitemeetings, telephone calls, conferences, and emails. We also explore new laws and regulations and judicial interpretations, and we share typical IP usecases. In 2019, we organized 11 IP-related training events.
4.1.3 Safe delivery and transportation
SF Holding abides by the Administrative Measures for Post Delivery Safety Supervision. We created systems including the Dangerous Goods TransportationManual, Operation Procedures for Receiving and Sending Express Mail Containing Lithium Batteries, and Operation Procedures for Receiving andSending Express Mail with Real Names. We established a working group to promote the use of the real name system for delivery. It defines the divisionof responsibilities and improves controls in areas including receiving and sending standards, inspection operations, rewards, and penalties throughout ourentire process to ensure safe delivery.Placing and receiving orders: controlling high-risk itemsReal name posting. We integrate a real-name authentication system it into our system logic. We display real name information on the system andmonitor the use of real names across our network.Inspection on receiving and posting. We issue order reminders to our couriers according to the nature of the customer placing the order, such as ‘new’,‘check’, and ‘strict check’. We provide each courier with a hand-held terminal to query our contraband database. Our Tianquan early warning system alsoidentifies risks, controlling the flow of high-risk items through our express channels.
????
Front-endunpackinginspection
On the basis offront-end unpackinginspection
Data EntryPlace an orderInformation
Big data aggregationPrinciple analysis ofdecision treeOutput risk factor ofexpress packages
Identify high riskexpress,output to tianquansystem
The system sends tothe passing nodes
with the earlywarning information
Unpacking forinspection again
Big dataRisk characteristics
Background entry
Risk expresspackages
Unpacking forinspection againCustomer relationships(e.g. new customers)Waybill information:
anonymous receipt, no?xed address, name ofconsignment, etc.Address of the sender/the delivery address
Sent illegal articles (black listed)Special control
Posting and delivery safety management process
2019 S.F. Holding Co., Ltd. Sustainability Report
顺丰控股 2019 年度可持续发展报告
Passing the security check. Our smart security check system collects and displays the operational status of security check machines, the number ofpackages passing through the machines, and the types and the number of illegal contraband items found. In 2019, we organized seven training sessionsfor 329 security personnel.Transportation and transfer: ensuring safe deliveryEnsuring the safety of items with high spontaneous combustion risk: We reduce the risk of spontaneous combustion and damage of batteries andfragile articles using intensive express delivery and professional container loading. We use flame-retardant containers for the collection and transportationof electronic products such as lithium batteries and other A-standard separated delivery items. We also use automatic fire alarm systems, anti-statictowing zones, and anti-static collection and packaging materials in vehicles to ensure safe delivery.Ensuring the safety of cold chain products: Our Regulations for Grading Management of Food Safety Risks in Cold Transport Division have helpedus establish a sound quality management system to ensure food quality in the cold chain logistics process. We established logistics service and internalcontrol standards for transporting medical products. These include a specialized medical transportation vehicles and facilities, a full-chain temperatureguarantee and monitoring system, and a logistics system with traceability and visualization.SF Holding passed ISO 22000 certification and obtained third-party logistics qualification fordrugs and medical devicesIn 2019, SF Holding successively obtained the Five-Star Cold Chain Logistics Enterprise (integrated type), Catering Cold Chain Logistics ServiceStandard, and Advanced Unit of Standardized Cold-Chain Operations qualifications. We also became the first domestic logistics enterprise topass the ISO 22000 food safety management system certification.We obtained third-party logistics qualifications for drugs and medical devices in Hubei Province and Sichuan Province, and for drugs inGuangdong Province. We also earned the double five-star certification for transportation scale hardware capability, transportation quality, andservice capability under the Assessment Standard for Logistics Quality and Service Capability of Drug-related Transportation Enterprises.Strengthening transportation security management. We use van-type trucks for transportation, equipped with regulator or electronic locks andsealing labels. We can monitor the parking position of vehicles in real time and regulate parking time and driving routes to ensure the safety of expresspackages in transit.Secure delivery is part of our personnel assessment. We impose administrative penalties on regional management personnel for security issues duringdelivery. The assessment results directly affect management year-end performance.In 2019, SF Holding launched 29 training sessions on safe delivery for couriers with 7.76 million participants and a 99.4% qualification rate.
4.1.4 Data privacy and security policy
SF Holding has a sound data privacy and network security protection policy and management framework. We conduct regular internal and external dataprivacy and network security tests, creating detailed emergency response guidelines. We have also established a full-chain customer privacy protectionstrategy to meet customers’ expectations.We assist the State Post Bureau of the People’s Republic of China in developing information and network security standards: the Guide to theClassification of Security Level Protection for Postal Information Systems (2015), the Basic Requirements for Security Level Protection for PostalInformation Systems (2016), and the Guide to the Implementation of Security Level Protection for Postal Information Systems (2018). We also helpedcreate the Security Technical Specification for the Internet of Things Platform and Perception Layer Device Security of the Internet of Things TechnicalSpecification led by the Shenzhen Institute of Standards and Technology, which were released on June 25, 2019. We proposed internet of things securitycontrol standards to promote the technology’s safe application.In 2019, there were no major network security or information disclosure incidents in SF Holding.
In 2019, SF Holding intercepted 10,573 illegal and contraband items.
Data privacy and network security policyAs a global company we abide by applicable data collection and processing laws and regulations around the world, including the Internet Security Lawof the People’s Republic of China, the Personal Data (Privacy) Regulations, the General Privacy Protection Law (GDPR) of Europe, the Personal InformationProtection Law of Japan, the Health Insurance and Portability Act of the US (HIPPA), and the Personal Information Protection and Electronic DocumentsAct of Canada.We have established a three-tier data privacy and network security management organization including decision-making, management, andimplementation organizations. The Technical Committee is ultimately responsible for information security decisions, appointments, and instructions. TheCEO serves as its chairman and is the highest responsible person for information and data security. All employees must sign the Employee InformationSecurity Undertaking to make commitments on the security and privacy of assets including company data, customer information, and employee personalinformation.
SF Holding’s information and data security organization and management responsibilitiesManagement LevelJob Responsibilities
Decision-making
?Topleadership?Informationsecuritydecisions,appointments,andinstructionsManagement
?Formulatinginformationanddatasecuritypoliciesandstandards?Planningandimplementinginformationanddatasecuritywork?Auditinginformationanddatasecurity?Providinginformationnecessaryforthedecision-makingorganization?Informationanddatasecurity-relatedtrainingImplementation
?Supervisingandconfirmingdepartmentalinformationanddatasecuritymanagement?Implementinganddevelopingspecificinformationanddatasecuritycontrolmeasures?Coordinatingandfacilitatingtheimplementationofinformationanddatasecurityrequirements
In 2019, SF Holding passed the following certifications: ISO 29151 for Personal Identity Information Protection Practice Guide Certification; ISO27701, the new international standard of privacy information management of 2019, based on the ISO 27001 Certification Standard; and theNational Information Security Level Protection Level III Certification and National Information Security Level Protection Level II Certification.
2019 S.F. Holding Co., Ltd. Sustainability Report
顺丰控股 2019 年度可持续发展报告
Our official website carries our Privacy Policy, which is applicable to S.F. Express and its affiliated companies. We also created the Data ComplianceManagement System, which applies to all our member companies (including those overseas) and divisions. It makes commitments including implementingleading data protection standards for handling personal information. It mandates principles including:
?Legality, legitimacy and necessity. Data processing must be necessary to provide goods or services unless otherwise agreed with the person
who is the subject of the personal information. Data should be processed for legitimate purposes only.?Purpose. Personal information collected may only be used for the purpose that its subject agrees to at the time of collection. The subject must
provide further consent for the use of subsequent personal information beyond the original purpose.?Truth and accuracy. Member companies shall promptly delete, correct, or supplement inaccurate or incomplete personal information, in
accordance with legal provisions upon receipt of a request or complaint from the subject.?Transparency. Member companies shall inform the subject about the purpose, method, scope, data controller, and data processor in a clear,
understandable, and reasonable manner. They will also inform the subject about other third parties or categories of third party that may receive
data.?Consent. The consent of the subject of the personal information must be obtained prior to or at the time of collection of personal information.In addition, we have stipulated the rights of individual information subjects in the Data Compliance Management System, including:
?Thesubjectmayaskforthetypeofpersonalinformationstored,thecollectionmethodandpurpose,thestorageperiod,thedatacontroller,and
the data processor.?Ifthepersonalinformationisincorrectorincomplete,thesubjectmayrequestcorrectionordeletion.?Ifpersonaldataisbreached,subjectswillbepromptlynotified.?Ifsubjectshavequestionsabouttheirpersonaldata,theycancontacttheofficialcustomerserviceteambytelephone.Theywillreceiveareply
within 15 days.(For full information, please refer to SF Holding Privacy Policy:
https://www.sf-express.com/cn/sc/Privacy_Policy/)
SF Holding’s data and information security organizational structure
Decision making organization
Management organization
Theimplementationof theorganization
Technical CommitteeInstruction/nominationReport
Dispatch/Check/GuideFeedback/ReportRisk control committee of informationsecurity and internal control
Network security department
Head of each centerResponsible for informationsecurity and data security
Network securitySF Holding has established a three-tier information and data security management organization, and created the Emergency Plan for Information SecurityIncidents of SF Holding to specify operational measures to monitor and respond to a cyber-attack. We created detailed emergency response and remedialmeasures for different types of cyber-attack to ensure that all types of cyber security incidents are dealt with quickly and properly.SF Holding conducts regular internal and external network security monitoring, conducts daily configuration checks, and has established a Blue Team toconduct penetration testing every quarter. White hat operatives discover system and business security vulnerabilities through our SF Security ResponseCenter. We have 1,136 white hat users witha high number of vulnerability submissions and user activity. We have also established cooperative relationswith external security media and network information security companies to help find potential security risks in the system. From June to September2019, we completed security testing and remediation of our web applications, along with emergency preparedness and response drills for securityincidents.
SF Security Response CenterWe emphasize network security awareness among our employees and include network security education in our induction training courses. We provideprofessional skills training for system development and network security maintenance personnel.Data and information securityWe have created information security systems such as the Group Information Security Management Policy Manual and the Guidelines for the Formulationand Implementation of IT System Emergency Plans to standardize our information security management and clarify our information security managementpolicies and requirements. We also set up a systematic data security management platform governing the creation, storage, and use of data. We havealso raised employee awareness of data and privacy protection through regular training.We conduct annual internal and external risk assessments and internal audits of our business systems to discover and remediate vulnerabilities andprevent the leakage of customer, employee, and Company information. We conducted two internal audits in 2019 and found 25 non-conformanceincidents with medium and low risks, rectifying them all within the specified time.
SF Holding information and data security risk assessment and internal audit routineInternal Risk Assessment
Daily routine security audits including log audits, vulnerability scans, and baseline audits.Annual risk assessments covering threats to the system, existing weaknesses, impacts. and the possibility ofrisksarising from the combination of the three.Internal System Audit
Annual internal privacy information management system audit and risk rectification, minimizing the securitythreats to our confidential and private information, systems, and networks, and improving overall privacyprotection.
External Penetration Testing
White hat penetration testing to find vulnerabilities including such as buffer overflows,business process issues,communication protocol bugs, and weak passwords.We created the Measures for the Management of Information Disclosure-Related Security Incidents and the Emergency Plan for Information SecurityIncidents of SF Holding. These specify risk levels for breaches involving data types such as customer information, personal information, and businessinformation. We list emergency response teams and measures, and specify workflows for information disclosure incident response.
2019 S.F. Holding Co., Ltd. Sustainability Report
顺丰控股 2019 年度可持续发展报告
SF Holding operational measures to monitor and respond to data breachesReceiving Reports
?Theinformationsecuritymonitoringgroupreceivesandreportsinformationdisclosuresecurityincidentsthrough various channels, such as the monitoring and dispatching platform, email, telephone, and externalchannels.Preliminary Analysis andGrading
?Weconductpreliminaryanalysisonreportedincidents,includingpreliminaryproblempositioning,customerinformation, and scope of influence.?Wegradethesecurityeventbasedonthepreliminaryanalysisresultsandtheeventgradingstandards.
Investigation and Analysis
?Ifthebreachinvolvesacustomerwaybillandaccountnumbers,wecheckthewaybillexceptioninquiry,account login, and operation log analysis to locate personnel, abnormal operation content, and systemexceptions.?Ifemployeepersonalinformationisinvolved,wecanlocatepersonnelorsystemabnormalitiesthroughSAP,
Fengsheng and other systems, combined with e-mail and internet behavior.?Inbusinessinformationbreachesweconsulttheoperationlogoftheplatformholdingtheinformationfor personnel or system abnormalities. We also check logs such as outgoing e-mails, online behavior, andsoftware connection systems.Rectification Process
?Ourinvestigationresultsguidesuggestionsforrectification.Wehandlethoseinvolvingpersonnelreviewin
coordination with the security team. We submit the investigation report to the Human Resources Department,
and refer serious cases to the Legal Department.SF Holding adopts end-to-end customer privacy protection policySF Holding protects customer data security and privacy using an end-to-end strategy spanning ordering, receiving, dispatching, transferring,after-sales and operation. It covers the entire data life cycle including collection, transmission, storage, processing, exchange, and destruction.
Data and privacy life cycle security control procedureCollectionTransmissionStorageAccessUseCooperation
?Reasonable
collection?Userauthorization
?Creditchannel?Upstreamanddownstreamauthentication?Channel/content
encryption
?Resource/column-
level encryption?Backupencryption
?User
authentication?Function
permission
control?Datapermission
control
?Query
desensitization?Export
desensitization?Test
desensitization
?Authority
control?Confidentiality
agreementSecurity control of data and privacy business scenarios procedure
Place an orderCollectTransfer/After-saleOperationThe Fengmi waybill hidesthe four middle digits of thereceiver’s phone number anddefines whether to print thesender’s information and theproduct information to protectthe customer’s privacy.
Our hand-held HHT7 terminalsuse asterisks in the callinginterface, phone records, andmessage interface, hiding somenumbers when contactingcustomers.
We use data desensitizationand intelligent outbound callingto contact the customer. Thesystem calls customers directlyfrom the background and thecustomer service personneldo not need to know thecustomer’s phone number.
We encrypt customer informationduring storage and transmissionin various business systemsand big data platforms, usingciphertext transmission duringdata flow.
SF Holding focuses heavily on supply chain construction, following the principles of equal consultation and mutual benefit. We operate a fair suppliermanagement system.
4.2.1 Supplier management mechanism
We have created systems including the Measures for the Management of Material Procurement and Sourcing in the Procurement Supply Chain Center,and Measures for the Management of Material Suppliers in the Procurement Supply Chain Center. They standardize the entire supplier managementlife cycle including admission, daily management, assessment, and exit. We use supplier relationship management and supplier settlement platforms toimplement online interactions throughout the supplier life cycle.Access admission. We require business qualification and financial credit and conduct on-site supplier evaluations covering their business, quality, andtechnology. We also assess the compliance of secondary suppliers in areas including safety and environmental protection. In 2019, we introduced 3,157suppliers including 701 centralized suppliers and 2,456 sub-suppliers, all of which have passed the relevant certification requirements.Daily assessment and evaluation. The company controls supplier quality and conducts quarterly, semi-annual, and annual performance evaluationsalong with project performance evaluations for suppliers. The procurement specialist leads and reports on annual on-site audits. We match suppliercapabilities to ensure stable supply quality. We divide suppliers into five grades according to the results of performance evaluation: A, B, C, D, and E.Grade A represents excellent performance, while we eliminate E-grade suppliers.Communication and training. We communicate and cooperate with our suppliers. enhancing this with periodic events and activities such as suppliertraining covering company development, practical skills, and employee safety. We use on-site or remote training to share updates to our supplier qualitystandards or experiences around problem prevention or quality improvement.Exit process. We remove companies from our list of qualified suppliers under conditions including: Failing our post-rectification review due to majorquality or delivery abnormalities; scoring a D grade twice consecutively or E for each quarter; failing to cooperate with the corrective action; scoring an Egrade in their annual performance.
4.2 Supplier Cooperation
SF Holding organized supplier training to enhance industry exchanges
In 2019, SF Holding used various forms of communication and training to improve suppliers’ product knowledge. We also carried out sharingand exchange activities with brand suppliers in transmission and sorting, information technology, mechanical and electrical equipment, andtransportation and packaging materials.
2019 S.F. Holding Co., Ltd. Sustainability Report
顺丰控股 2019 年度可持续发展报告
4.2.2 Procurement with integrity and fairness
We follow the principles of fairness, openness, and impartiality. We impose standards of transparent access at the front stage of procurement, fairprocess at the middle stage, and fair supervision at the back end.Authorization Principles
The Purchasing Department is the only unit to make commercial commitments to suppliers. It is invalidand illegal for other departments to circumvent the Purchasing Department to make similar commitmentsto suppliers.Principle of Integrity
Cooperation with suppliers and all business activities must follow the standards of integrity and businessethics.The Principles Of Fairness,Openness and Justice
The Purchasing Department is responsible for obtaining the best overall value for the Company, ensuringopenness in purchasing behavior, fairness in treating suppliers, and fairness in purchasing decisions.
We manage risk during the supplier bidding process, monitor aspects including supplier association, and prevent collusion with other suppliers duringquotations. Clients must sign our Integrity Agreement along with our cooperation contract, prohibiting any form of bribery between the two sides.Our Audit Department investigates abnormal activities with a focus on examining procurement ethics supporting fairness, openness, and justice in ourprocurement.We created the Sunshine Procurement Notification Letter to better manage procurement-related risks, integrating supplier certification, procurementsourcing, material delivery confirmation, and supplier performance evaluation. We also trained suppliers in their rights to confidentiality, complaint,reporting, and information. In 2019, we conducted a supplier satisfaction survey to identify purchasing and supplier cooperation problems. The surveycovered questions related to procurement and personnel competence and quality. 300 central suppliers and sub-suppliers participated in the survey,indicating a 92.8% satisfaction.In 2019, the suppliers signing rate of the integrity agreement reached 100%.
In 2019, the suppliers signing rate of the Social Responsibility Clause reached 100%.
4.2.3 Striving for responsible supply
SF Holding attaches great importance to a responsible supply chain, opens communication channels, strengthens multiparty cooperation, andcontinuously drives suppliers to fulfill their responsibilities. We created the Regulations on Green Procurement Management of Procurement Supply ChainCenter in response to the State Post Bureau’s call for a green procurement pilot. We added corresponding environmental protection requirements to oursupplier certification standards, bidding regulations, contract signing, and daily management. We also implemented green environmental protectionrequirements for suppliers to ensure green procurement.In 2019, we supplemented The Social Responsibility Clause in our contractor agreements, defining the responsibilities of all partners in operationsand employee care. We emphasize environmental compliance and require suppliers to take effective pollution prevention and emission managementmeasures. We mandate supplier respect for human rights, fair and compliant employment measures, and require the reduction of potential safety hazardsthrough preventive maintenance, safety work procedures and continuous safety training.
Policy List
Regulations (GOVERNANCE)
Articles of Association of SF Holdings Co., Ltd.Management System of Company Risk ControlManagement System of SF Holding CrisesSF Holding Anti-Corruption Management SystemSF Holding Integrity HandbookAdministrative Measures for Relatives AvoidingRewards and Penalty Management RegulationsReporting Management MeasuresNotice on Issuing the ‘Self-declaration of 842 Employees With No Worries’Employee Handbook (Chinese and English version)Letter of Commitment to Anti-corruptionIntegrity Agreement
2019 S.F. Holding Co., Ltd. Sustainability Report
顺丰控股 2019 年度可持续发展报告
Regulations (SOCIETY)
Employee Handbook (Chinese and English version)the Regulations on Employee DismissalMeasures for Management of New EmployeesRegulations on Attendance ManagementLabor ContractIrregular Working Hours SystemIncentive Plan for Stock Appreciation RightsRegulations on Management of Outstanding EmployeesEmployee Communication Management RegulationsTalent Promotion Management SystemGuidelines for Non-Senior Management PromotionOperational Guidelines for Senior Management PromotionSF Instructor Management SystemSF Teaching Material Management SystemExternal Training Management SystemSF’s Application Process for External TrainingOccupational Health and Safety Management ManualSafety Production Responsibility SystemMeasures for the Safety Management of Self-operated Vehicles and DriversFire Safety Management SystemMeasures for the Management of Fire-fighting Facilities and Equipment on Property SitesRegulations on Safety Management of Logistics SuppliersSafety Management Agreement for Logistics Handling and Sorting ServicesSafety Management Agreement for Cargo Transportation Services by RoadSafe Operation of Belt Conveyor (Sorting)Safe Operation Procedures for ForkliftsRegulations on Safety Inspection, Hazard Identification, and Risk ManagementEmergency Preparedness Management SystemRegulations on Safety Education and Training Management
Regulations (ENVIRONMENT)Emission Reduction Reward and Punishment SystemWaste Oil Management RegulationsOperation Plan and Management Measures for Clean Energy vehicles in the FieldMeasures for Office Space ManagementMeasures for the Management of Water and Electricity
Regulations (ECONOMY)
Rules for Rewards and Penalties of Customer LinesException Handling Mechanism of Time EffectivenessDifferentiated Service for CustomersOperation Guidelines for Handling Group Infringement IncidentsManagement System TrademarkDangerous Goods Transportation ManualOperation Procedures for Receiving and Sending Express Mail Containing Lithium BatteriesGrading Management of Food Safety Risks in Cold Transport DivisionEmployee Information Security UndertakingData Compliance Management SystemPrivacy PolicyEmergency Plan for Information Security Incidents of SF HoldingGroup Information Security Management Policy ManualGuidelines for the Formulation and Implementation of IT System Emergency PlansManagement of Information Disclosure-Related Security IncidentsMeasures for the Management of Material Suppliers in the Procurement Supply Chain CenterRegulations on Green Procurement Management of Procurement Supply Chain CenterSunshine procurement Notification Letter
2019 S.F. Holding Co., Ltd. Sustainability Report
顺丰控股 2019 年度可持续发展报告
ESG Key Performance TablesIndex (GOVERNANCE)Unit2019Number of shareholders’ meetingsTimes4Follow-up feedback rate of effective reporting%100Completion rate of “three ones” in handling complaints%99Workforce’ signing rate of the Letter of Commitment to Anti-corruption%87.9Total duration of workforce anti-corruption educationHours9,738
Index (SOCIETY)Unit2019
Number of labour union members10,000 people15Collective bargaining agreements cover rate%20.7Resolution rate of workforce communication and advise%93Employee satisfaction survey results%87Employment contract signing rate%100Total number of workforcesPeople522,912Couriers turnover rate%20.9Percentage of rural workforce%80Total number of workforce online trainedPerson-times22,285,007Total hours of workforce trainingHours2,575,721Total investment in workforce training100 million1.3Male workforce online trainingPerson-times17,202,641Female workforce online trainingPerson-times5,082,366New workforce trainingPerson-times120,828Total number of workforces receiving financial support for degreePerson555Total amount of educational certification subsidyRMB4,622,686Total recordable injury rate%0.004Lost time injury rate (LTIR)%0.005LTIR trend based on 2018%-37.5Serious express fire accidentNumber0Fire accidents of Level I and Level IINumber0Personnel safety index–900Safe production investment amount10,0005,651Number of safety loopholes discovered and rectified in various safety inspections andactivities
Number56,832The number of safety drillsTimes1,339Safety drill siteNumber1,320Safety training coverage rate%100Condolences to workforces and their families10,000 Person-times161Input of workforce consideration services10,0006,770
Index (ENVIRONMENT)Unit2019
Gasoline consumptionL300,577.8——Gasoline consumption of land transportationL206,472.0——Gasoline consumption of ground aviationL94,105.8Diesel consumptionL152,355,602.3——Diesel consumption of land transportationL151,920,855.0——Diesel consumption of ground aviationL753,549.7Electricity consumptionkW·h128,728,372.9——Electricity consumption of land transportationkW·h74,324,061.4——Electricity consumption of ground aviationkW·h4,072,429.9——Industrial park electricity consumption
kW·h44,872,756.0——Electricity consumption of the headquarters officekW·h5,459,125.6Aviation kerosene consumptiont240,125.0Greenhouse gas emissions from refrigeranttCO
e1,986.4Comprehensive energy consumption
kW·h4,540,461,748.0Comprehensive energy intensitykW·h/million revenue40,470.1Total greenhouse gas emissions
tCO
e1,280,462.5——Greenhouse gas emissions (Scope 1)tCO
e1,169,038.0——Greenhouse gas emissions (Scope 2)tCO
e111,424.6Greenhouse gas emission intensitytCO
e/million revenue11.4Water consumptiont438,191.9——Water consumption of industrial parkst326,459.5——Water consumption of the headquarters buildingt72,174.9——Water consumption of ground aviationt39,557.5Waste productionkg13,860,481.4——Waste production of industrial parkkg12,331,681.4——Production of office waste of the headquarters officekg1,528,800.0Paper used of the headquarters officekg26,249.6Total use of packaging itemskg375,707,380.6——Consumption of express envelopekg77,556,302.1——Consumption of waybillkg18,569,099.2——Carton consumptionkg235,122,326.8——Consumption of plastic bagskg21,099,363.4——Consumption of scotch tapekg23,360,289.1
Renewable energy generation capacity (1,296,826.4 kW·h) has been included in the power consumption of the industrial park.
Comprehensive energy intensity and Greenhouse gas emission intensity data cover SF Holding self-operated industrial parks in China mainland and Hong Kong, the
headquarters of?ce, owned all-cargo planes, ground aviation (Shenzhen headquarters and the bases in Beijing and Hangzhou) and parts of self-owned vehicles of Chinamainland, Hong Kong and Macao.
2019 S.F. Holding Co., Ltd. Sustainability Report
顺丰控股 2019 年度可持续发展报告
index (ECONOMY)Unit2019
Technology investment10,000366,776.8Research and development investment10,000256,540.0Number of patents grantedNumber1,005Number of new patents in 2019Number328Coverage rate of training on safe delivery for couriers%81.4Number of safety training courses on safe deliveryNumber29Pass rate of delivery safety training%99.4Rate of special equipment with certificates%100Number of illegal and prohibited products interceptedNumber10,573Major cybersecurity and information leakage incidentsNumber0Effective complaint rate of consumersPPM0.15Handling rate ofconsumer complaints%100Customer satisfaction%96Number of internal audits on information securityTimes2Number of suppliers in ChinaCompanies18,212Number of suppliers in Hong Kong, Macao and TaiwanCompanies22Number of suppliers in AmericaCompanies4Number of European suppliersCompanies3Number of suppliers in Asia (excluding China)Companies2Suppliers with systematic managementCompanies18,243Newly introduced centralized purchasing supplier in 2019Companies701Newly introduced sub-suppliers in 2019Companies2,456Signing rate of social responsibility clauses%100Signing rate of supplier integrity agreement%100Supplier satisfaction rate%92.8
GRI Standards Index
GRI StandardDisclosureChapterOrganizational profile102-1Name of the organizationAbout the company102-2Activities, brands, products, and servicesAbout the company102-3Location of headquartersPlease refer to the SF Holding 2019 Annual Report102-4Location of operationsPlease refer to the SF Holding 2019 Annual Report102-5Ownership and legal formPlease refer to the SF Holding 2019 Annual Report102-6Markets servedAbout the company102-7Scale of the organizationAbout the company102-8Information on employees and other workersRecruitment and promotion102-9Supply chainSupplier management mechanism102-10Significant changes to the organization and its supply chainSupplier management mechanism102-11Precautionary Principle or approachGreen transportation; Green office102-12External initiativesInternal integrity management system102-13Membership of associationsInternal integrity management systemStrategy102-14Statement from senior decision-makerChairman’s speech102-15Key impacts, risks, and opportunitiesESG risk managementEthics and integrity102-16Values, principles, standards, and norms of behaviorInternal integrity management system102-17Mechanisms for advice and concerns about ethics
Internal integrity management system; Anti-corruptionmeasurementGovernance102-18Governance structureSustainable development management102-19Delegating authoritySustainable development management102-20
Executive-level responsibility for economic, environmental andsocial topics
Sustainable development management102-21
Consulting stakeholders on economic, environmental, and socialtopics
Stakeholder identification and communication102-22Composition of the highest governance body and its committeesPlease refer to the SF Holding 2019 Annual Report102-23Chair of the highest governance bodyPlease refer to the SF Holding 2019 Annual Report102-24Nominating and selecting the highest governance bodyPlease refer to the SF Holding 2019 Annual Report102-25Conflicts of interestInternal integrity management system102-26
Role of highest governance body in setting purpose, values andstrategy
Sustainable development management
2019 S.F. Holding Co., Ltd. Sustainability Report
顺丰控股 2019 年度可持续发展报告
GRI StandardDisclosureChapter
102-27Collective knowledge of highest governance bodyIdentification and communication of stakeholders102-29
Identifying and managing economic, environmental, and socialimpacts
Materiality issues; ESG risk management102-30Effectiveness of risk management processesRisk management system102-31Review of economic, environmental, and social topicsMateriality issues102-32Highest governance body’s role in sustainability reportingSustainable development management102-33Communicating critical concernsStakeholder identification and communication102-34Nature and total number of critical concerns
Stakeholder identification and communication;
Materiality issues102-35Remuneration policiesRights protection102-36Process for determining remunerationRights protectionStakeholder engagement102-40List of stakeholder groupsStakeholder identification and communication102-41Collective bargaining agreementsRights protection102-42Identifying and selecting stakeholdersStakeholder identification and communication102-43Approach to stakeholder engagementStakeholder identification and communication102-44Key topics and concerns raisedMateriality issuesReporting practice102-45Entities included in the consolidated financial statementsPlease refer to the SF Holding 2019 Annual Report102-46Defining report content and topic BoundariesAbout the report102-47List of material topicsMateriality issues102-48Restatements of informationAbout the report102-49Changes in reportingNot applicable102-50Reporting periodAbout the report102-51Date of most recent reportNot applicable102-52Reporting cycleAbout the report102-53Contact point for questions regarding the reportAbout the report102-54Claims of reporting in accordance with the GRI StandardsAbout the report102-55GRI content indexGRI Standards IndexEconomic StandardsGRI 103 Management Approach103-1Explanation of the material topic and its BoundaryMateriality issues; About the report103-2The management approach and its componentsGreen Office103-3Evaluation of the management approach
Anti-corruption measurements; Supplier management
mechanism
GRI StandardDisclosureChapter
GRI 201 Economic PerformanceGRI 103 Management Approach103-1Explanation of the material topic and its BoundaryMateriality issues; About the report103-2The management approach and its componentsESG risk management; Addressing climate change103-3Evaluation of the management approach
ESG risk management; Addressing climate change;Poverty alleviation201-1Direct economic value generated and distributedPoverty alleviation201-2
Financial implications and other risks and opportunities due toclimate change
ESG risk management; Addressing climate change201-3Defined benefit plan obligations and other retirement plansRights protectionGRI 202 Market PresenceGRI 103 Management Approach103-1Explanation of the material topic and its BoundaryMateriality issues; About the report103-2The management approach and its componentsRights protection103-3Evaluation of the management approachRights protection203 Indirect Economic ImpactsGRI 103 Management Approach103-1Explanation of the material topic and its BoundaryMateriality issues; About the report103-2The management approach and its componentsPhilanthropic donations and support103-3Evaluation of the management approachPhilanthropic donations and support203-1Infrastructure investments and services supportedPhilanthropic donations and support203-2Significant indirect economic impactsPhilanthropic donations and support204 Procurement PracticesGRI 103 Management Approach103-1Explanation of the material topic and its BoundaryMateriality issues; About the report103-2The management approach and its componentsProcurement with integrity and fairness103-3Proportion of spending on local suppliersProcurement with integrity and fairness205 Anti-corruptionGRI 103 Management Approach103-1Explanation of the material topic and its BoundaryMateriality issues; About the report103-2The management approach and its components
Internal integrity management system; Anti-corruption
measurement103-3Evaluation of the management approach
Internal integrity management system; Anti-corruption
measurement205-1Operations assessed for risks related to corruptionInternal integrity management system205-2
Communication and training about anti-corruption policies andprocedures
Internal integrity management system; Anti-corruption
measurement205-3Confirmed incidents of corruption and actions takenAnti-corruption measurement
2019 S.F. Holding Co., Ltd. Sustainability Report
顺丰控股 2019 年度可持续发展报告
GRI StandardDisclosureChapter206 Anti-competitive BehaviorGRI 103 Management Approach103-1Explanation of the material topic and its BoundaryMateriality issues; About the report206-1
Legal actions for anti-competitive behavior, anti-trust, andmonopoly practices
Internal integrity management systemEnvironmental StandardsGRI 103 Management Approach103-1Explanation of the material topic and its BoundaryMateriality issues; About the report103-2The management approach and its componentsGreen packaging; Green transportation103-3Evaluation of the management approachGreen packaging; Green transportation; Green OfficeGRI 301 MaterialsGRI 103 Management Approach103-1Explanation of the material topic and its BoundaryMateriality issues; About the report103-2The management approach and its componentsGreen packaging103-3Evaluation of the management approachGreen packaging301-1Materials used by weight or volumeGreen packaging301-2Recycled input materials usedGreen packaging301-3Reclaimed products and their packaging materialsGreen packaging302 EnergyGRI 103 Management Approach103-1Explanation of the material topic and its BoundaryMateriality issues; About the report103-2The management approach and its componentsGreen transportation103-3Evaluation of the management approachGreen transportation302-1Energy consumption within the organizationGreen transshipment302-3Energy intensityGreen transportation302-4Reduction of energy consumptionGreen transportation302-5Reduction in energy requirements of products and servicesGreen transportation303 Water and EffluentsGRI 103 Management Approach103-1Explanation of the material topic and its BoundaryMateriality issues; About the report103-2The management approach and its componentsGreen Office103-3Evaluation of the management approachGreen Office303-1Interactions with water as a shared resourceNot applicable303-2Management of water discharge-related impactsNot applicable303-3Water withdrawalGreen Office
GRI StandardDisclosureChapter304 BiodiversityGRI 103 Management Approach103-1Explanation of the material topic and its BoundaryNot applicable103-2The management approach and its componentsNot applicable103-3Evaluation of the management approachNot applicable304-1
Operational sites owned, leased, managed in, or adjacent to,protected areas and areas of high biodiversity value outsideprotected areas
Not applicable304-2
Significant impacts of activities, products, and services onbiodiversity
Not applicable304-3Habitats protected or restoredNot applicable304-4
IUCN Red List species and national conservation list species withhabitats in areas affected by operations
Not applicable305 EmissionsGRI 103 Management Approach103-1Explanation of the material topic and its BoundaryMateriality issues; About the report103-2The management approach and its componentsGreen packaging; Green transportation103-3Evaluation of the management approachGreen packaging; Green transportation305-1Direct (Scope 1) GHG emissionsESG Key Performance Tables305-2Energy indirect (Scope 2) GHG emissionsESG Key Performance Tables305-3Other indirect (Scope 3) GHG emissionsESG Key Performance Tables305-4GHG emissions intensityESG Key Performance Tables305-5Reduction of GHG emissionsESG Key Performance Tables305-6Emissions of ozone-depleting substances (ODS)Green transportation305-7
Nitrogen oxides (NOx), sulfur oxides (SOx), and other significantair emissions
ESG Key Performance Tables306 Effluents and WasteGRI 103 Management Approach103-1Explanation of the material topic and its BoundaryMateriality issues; About the report103-3The management approach and its componentsGreen Office306-2Evaluation of the management approachGreen Office306-3Water discharge by quality and destinationNot applicable306-4Transport of hazardous wasteNot applicable306-5Water bodies affected by water discharges and/or runoffNot applicable
2019 S.F. Holding Co., Ltd. Sustainability Report
顺丰控股 2019 年度可持续发展报告
GRI StandardDisclosureChapter307 Environmental ComplianceGRI 103 Management Approach103-1Explanation of the material topic and its BoundaryMateriality issues; About the report103-2The management approach and its componentsGreen transportation; Addressing climate change103-3Evaluation of the management approachGreen transportation; Addressing climate change307-1Non-compliance with environmental laws and regulationsDeveloping green logistics308 Supplier Environmental AssessmentGRI 103 Management Approach103-1Explanation of the material topic and its BoundaryMateriality issues; About the report103-2The management approach and its componentsStriving for responsible supply103-3Evaluation of the management approachStriving for responsible supply308-1New suppliers that were screened using environmental criteriaStriving for responsible supply308-2
Negative environmental impacts in the supply chain and actionstaken
Striving for responsible supplySocial StandardsGRI 103 Management Approach103-1Explanation of the material topic and its BoundaryMateriality issues; About the report103-2The management approach and its componentsRights protection103-3Evaluation of the management approachRights protection401 EmploymentGRI 103 Management Approach103-1Explanation of the material topic and its BoundaryMateriality issues; About the report103-2The management approach and its componentsRights protection103-3Evaluation of the management approachRights protection401-1New employee hires and employee turnoverRecruitment and promotion401-2
Benefits provided to full-time employees that are not provided totemporary or part-time employees
Welfare and care401-3Parental leaveWelfare and care402 Labor/Management RelationsGRI 103 Management Approach103-1Explanation of the material topic and its BoundaryMateriality issues; About the report103-2The management approach and its componentsRights protection103-3Evaluation of the management approachRights protection402-1Minimum notice periods regarding operational changesRights protection
GRI StandardDisclosureChapter403 Occupational Health and SafetyGRI 103 Management Approach103-1Explanation of the material topic and its BoundaryMateriality issues; About the report103-2The management approach and its componentsOccupational health and safety103-3Evaluation of the management approachOccupational health and safety403-1Occupational health and safety management systemOccupational health and safety403-2Hazard identification, risk assessment, and incident investigationOccupational health and safety403-3Occupational health servicesOccupational health and safety403-4
Worker participation, consultation, and communication onoccupational health and safety
Occupational health and safety403-5Worker training on occupational health and safetyOccupational health and safety403-6Promotion of worker healthOccupational health and safety403-7
Prevention and mitigation of occupational health and safetyimpacts directly linked by business relationships
Occupational health and safety403-8
Workers covered by an occupational health and safetymanagement system
Occupational health and safety403-9Work-related injuriesOccupational health and safety403-10Work-related ill healthOccupational health and safety404 TRAINING AND EDUCATIONGRI 103 Management Approach103-1Explanation of the material topic and its BoundaryMateriality issues; About the report103-2The management approach and its componentsTraining and development103-3Evaluation of the management approachTraining and development404-1Average hours of training per year per employeeTraining and development404-2
Programs for upgrading employee skills and transition assistanceprograms
Training and development404-3
Percentage of employees receiving regular performance andcareer development reviews
Training and development405 DIVERSITY AND EQUAL OPPORTUNITYGRI 103 Management Approach103-1Explanation of the material topic and its BoundaryMateriality issues; About the report103-2The management approach and its componentsRights protection; Recruitment and promotion103-3Evaluation of the management approachRights protection; Recruitment and promotion405-1Diversity of governance bodies and employeesRecruitment and promotion
2019 S.F. Holding Co., Ltd. Sustainability Report
顺丰控股 2019 年度可持续发展报告
GRI StandardDisclosureChapter406 NON-DISCRIMINATIONGRI 103 Management Approach103-1Explanation of the material topic and its BoundaryMateriality issues; About the report103-2The management approach and its componentsRights protection103-3Evaluation of the management approachRights protection406-1Incidents of discrimination and corrective actions takenRights protection407 FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAININGGRI 103 Management Approach103-1Explanation of the material topic and its BoundaryMateriality issues; About the report103-2The management approach and its componentsRights protection103-3Evaluation of the management approachRights protection408 CHILD LABORGRI 103 Management Approach103-1Explanation of the material topic and its BoundaryMateriality issues; About the report103-2The management approach and its componentsRights protection103-3Evaluation of the management approachRights protection409 FORCED OR COMPULSORY LABORGRI 103 Management Approach103-1Explanation of the material topic and its BoundaryMateriality issues; About the report103-2The management approach and its componentsRights protection103-3Evaluation of the management approachRights protection410 SECURITY PRACTICESGRI 103 Management Approach103-1Explanation of the material topic and its BoundaryNot applicable103-2The management approach and its componentsNot applicable103-3Evaluation of the management approachNot applicable410-1Security personnel trained in human rights policies or proceduresNot applicable411 RIGHTS OF INDIGENOUS PEOPLESGRI 103 Management Approach103-1Explanation of the material topic and its BoundaryNot applicable103-2The management approach and its componentsNot applicable103-3Evaluation of the management approachNot applicable411-1Incidents of violations involving rights of indigenous peoplesNot applicable
GRI StandardDisclosureChapter412 HUMAN RIGHTS ASSESSMENTGRI 103 Management Approach103-1Explanation of the material topic and its BoundaryMateriality issues; About the report103-2The management approach and its componentsRights protection103-3Evaluation of the management approachRights protection412-3
Significant investment agreements and contracts that includehuman rights clauses or that underwent human rights screening
Striving for responsible supply413 LOCAL COMMUNITIESGRI 103 Management Approach103-1Explanation of the material topic and its BoundaryMateriality issues; About the report103-2The management approach and its componentsPhilanthropic donations and support103-3Evaluation of the management approachPhilanthropic donations and support413-1
Operations with local community engagement, impactassessments, and development programs
Poverty alleviation413-2
Operations with significant actual and potential negative impactson local communities
Philanthropic donations and support414 SUPPLIER SOCIAL ASSESSMENTGRI 103 Management Approach103-1Explanation of the material topic and its BoundaryMateriality issues; About the report103-2The management approach and its componentsSupplier management mechanism103-3Evaluation of the management approachSupplier management mechanism414-1New suppliers that were screened using social criteriaStriving for responsible supply414-2Negative social impacts in the supply chain and actions takenSupplier management mechanism415 PUBLIC POLICYGRI 103 Management Approach103-1Explanation of the material topic and its BoundaryNot applicable103-2The management approach and its componentsNot applicable103-3Evaluation of the management approachNot applicable415-1Political contributionsNot applicable
2019 S.F. Holding Co., Ltd. Sustainability Report
顺丰控股 2019 年度可持续发展报告
GRI StandardDisclosureChapter416 CUSTOMER HEALTH AND SAFETYGRI 103 Management Approach103-1Explanation of the material topic and its BoundaryMateriality issues; About the report103-2The management approach and its componentsSafe delivery and transportation103-3Evaluation of the management approachSafe delivery and transportation416-1
Assessment of the health and safety impacts of product andservice categories
Safe delivery and transportation417 MARKETING AND LABELINGGRI 103 Management Approach103-1Explanation of the material topic and its BoundaryMateriality issues; About the report103-2The management approach and its componentsTechnology and product innovation103-3Evaluation of the management approachTechnology and product innovation417-2
Incidents of non-compliance concerning product and serviceinformation and labeling
Technology and product innovation418 CUSTOMER PRIVACYGRI 103 Management Approach103-1Explanation of the material topic and its BoundaryMateriality issues; About the report103-2The management approach and its componentsData privacy and security policy103-3Evaluation of the management approachData privacy and security policy418-1
Substantiated complaints concerning breaches of customer privacyand losses of customer data
Data privacy and security policy419 SOCIOECONOMIC COMPLIANCEGRI 103 Management Approach103-1Explanation of the material topic and its BoundaryMateriality issues; About the report103-2The management approach and its componentsBusiness ethics management103-3
Non-compliance with laws and regulations in the social andeconomic area
Business ethics management
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