中通快递(ZTO.US)2023年环境、社会和治理(ESG)报告(英文版)(52页).pdf

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中通快递(ZTO.US)2023年环境、社会和治理(ESG)报告(英文版)(52页).pdf

1、Bringing Happiness to MorePeople through Our ServicesNYSE:ZTOSEHK:2057.HKZTO Express(Cayman)Inc.2023Environmental,Socialand Governance ReportAbout the Report 2 Introduction 2 References 2 Scope and boundary 2 Data source and reliability commitment 2 Confirmation and approval 2 Access and contact inf

2、ormation 2Chairmans message 4About ZTO Express 5Honors&Awards 2023 8ESG Management 9 ESG Management Structure 9 Stakeholder Engagement 9 Assessment of Materiality Issues 11Appendix I:Summary of Key Performance 91Appendix II:Index of ESG Indicators 95Topic OnePromoting High-Quality Development to Ful

3、fill the Mission of the Times13Learning the Thoughts and Grasping the Pulse of the TimesShouldering Responsibilities and Being a Pioneer of the Times1315Topic TwoResponding to Climate Change,Establishing a Green Postal RouteResponding to Climate ChangeEnergy Conservation and Carbon ReductionPackagin

4、g Material Usage19242717Sincerity and TrustIn Search of Long-Term Stability and HarmonyLaying a Solid Foundation for Business OperationsStrengthening Environmental Management818780Uniting HeartsSharing WarmthEnsuring Employees Rights and InterestsEmpowering Employee DevelopmentCo-building Prosperous

5、 and Beautiful VillagesCommunity Welfare Enthusiast5565747654Linking the WorldUniting All,Reaching BeyondContinuing the Gene of InnovationPrioritizing Customer ExperienceCreating a Chain of ResponsibilityContributing to the Development of the Industry3137475130ZTO EAbout the reportIntroductionThis r

6、eport is the seventh Environmental,Social and Governance Report(hereinafter referred to as this report or ESG report)released by ZTO Express(Cayman)Inc.As used in this report,ZTO Express,the Company and we refers to ZTO Express(Cayman)Inc.and its subsidiaries.The purpose of this report is to provide

7、 factual disclosure of the Companys ESG performance and fulfillment practices with respect to shareholders,customers,partners,employees,the environment,communities and other key stakeholders.Unless otherwise stated,this report covers the financial year from January 1,2023 to December 31,2023(the rep

8、orting period).ReferencesThis report is prepared with reference to the Appendix C2:(Environmental,Social and Governance Reporting Guide)to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited(hereinafter referred to as the ESG Guide of HKEX),the GRI Sustainability

9、 Reporting Standards released by the Global Sustainability Standards Board(hereinaf-ter referred to as the GRI Standards),the China Guidelines for Corporate Social Responsibility Reports(CASS-ESG5.0)issued by the Chinese Academy of Social Sciences,and the SDG Compass.The preparation of this report i

10、s subject to the following principles:Materiality:The materiality of the ESG issues is determined by the Board,and stakeholder communication,identification of materiality issues,and materiality issues matrix have all been disclosed in this report.Quantitative:The measurement standards,methodologies,

11、assumptions and/or calculation tools of the key performance indicators in this report,as well as the source of the conversion factors used,have been explained in the reports explanatory notes.Balance:This report presents the Companys performance during the reporting period in an unbiased manner,avoi

12、ding selections,omissions,or presentation formats that might improperly influence the decisions or judgments of readers of the report.Consistency:Unless otherwise stated,the statistical methods and scope used in the disclosure of data in this report are consistent with those used in previous years.T

13、o facilitate readers reference,an index of ESG indicators is provided in Appendix II of this report.Scope and boundaryUnless otherwise stated,the scope of the policies and data provided in this report are consistent with those referred to in the annual report.Data source and reliability commitmentTh

14、e data and cases in the report are mainly obtained from the statistical reports and relevant files of the Company,and reviewed by various departments.The Board undertakes that the report does not contain any false records or misleading statements and that Board is responsible for the authenticity,ac

15、curacy and completeness of the report.Confirmation and approvalThis report was approved by the ESG Committee and the Board of Directors of the Company.Access and contact informationReaders may access the electronic version of this report on the Investor Relationship section of the Companys official

16、website at .If you have any comments or suggestions on the Companys environmental,social and gover-nance disclosures and performance,please contact us through the following means:Address of ZTO headquarters:1685 Huazhi Road,Huaxin Town,Qingpu District,ShanghaiPostal Code:201708 Tel:95311 E-mail:Brin

17、ging Happiness to MorePeople through Our ServicesAbout the report0201ZTO E2023 ESG ReportThe year 2023 marked the commencement of a brand-new phase in the second twenty-year development of ZTO Express.This year was also crucial for the strategic layout and development process of the Company.Standing

18、 on the new starting point forged by common efforts,we shoulder more significant responsibilities and tasks,embracing more ambitious mission and ideal.For this reason,we can only be more enthusiastic,down-to-earth and perseverant;strive our best to bring ZTO Express to new heights and live up to the

19、 ardent expectations of our customers and all walks of life.As we move forward,we are deeply aware that ESG is not only a part of corporate social responsibility,but also a strategic direction and core driving force to ensure long-term sound and sustainable development.In 2023,we actively put ESG co

20、ncepts into practice.On the basis of solid corporate governance,we will continue to foster green transformation and safeguard the development of our employees.We also seek to give back to society with efficient services and caring humanistic care,continuously improve our ESG performance.In terms of

21、adhering to the leadership of the Party,we recognize the fundamental significance of political leadership for the long-term development of our enterprise.In this regard,we have been promoting harmony and integration within the enterprise through in-depth promotion of Party building activities,educat

22、ion and publicity,rigorous promo-tion of constructing a clean Party,strengthening of the ideological education of employees,and giving full play to the pioneering role of Party members.All of these have promoted internal harmony and integration within the enterprise and provided a solid guarantee fo

23、r the enterprises healthy development.In response to global climate change,we are well aware of the far-reaching impact of climate change on society and the economy.Therefore,in 2023,we strived to reduce the carbon footprint of ZTO Express and build a more sustainable logistics system through numero

24、us means.We proactively identified and responded to the risks of climate change,built a green logistics model,strengthened energy efficiency and greenhouse gas emission management,and continuously optimized the green packaging system.We are committed to building a more sustainable logistics ecosyste

25、m.In terms of product innovation,we are determined to develop more intelligent,convenient,safe and reliable logistics solutions to enhance user experience.Through the introduction of advanced technologies such as artificial intelligence and big data analysis,we optimized the logistics operation proc

26、ess and improved delivery speed and accura-cy.This is not only a response to changes in market demand,but also a way for us to leverage our highly efficient logistics operation model and seek to maximize the use of resources for achieving our long-term goal of sustainable development.In terms of emp

27、loyee care,we have further strengthened the protection of employees rights and interests,paying more attention to the spiritual needs of employees and enhancing their sense of achievement and happiness.By constant enrichment and improvement of the system that protects employees rights and interests,

28、provision of diversi-fied vocational skills training and clear and unimpeded career advancement paths,we seek to create an attractive work environment that capitalizes on the growth of our employees.In addition,we actively participate in public welfare activities,such as fulfilling our corporate soc

29、ial responsibilities and make active contributions to society through supporting education in remote areas and assisting disadvantaged groups.In terms of corporate and environmental governance,we have strengthened the level of corporate governance to ensure the rationality of corporate decision-maki

30、ng and compliance of corporate operations.This was done by enhancing the diversity of the board,optimizing the risk management process and strengthening the construction of a code of business ethics.At the same time,we continue to improve the level of green development by introducing more advanced e

31、co-protection technologies and building a green office environment to put the concept of sustainable develop-ment into practice.We will strive to live up to our reputation.In the future,we will follow the development trend of the industry,continue to deepen the practice of ESG in all aspects,and wor

32、k hand in hand with all employees,users as well as all walks of life to promote high-quality development of the enterprise,and to take practical action to fulfill our social responsibility.Chairmans MessageChairman of the Board of Directors and ChiefExecutive OfficerLai MeisongChairmans Message0403Z

33、TO E2023 ESG Report99%+Network coverageof thecounty-level citiesVillage-level cities coverage rate 96%+Last-mile postsZTO service outlets 31,000+110,000Line-haul vehicles10,000+9,200 High-capacity trailer trucksAbout ZTO Express中通快递上海某某网点Founded on May 8 2002,ZTO Express has since evolved into a lar

34、ge logistics conglomer-ate integrating multiple services including domestic and international express delivery,less-than-truckload(LTL),cloud warehousing,cold chain,finance,and commerce(Tuxi).On October 27,2016,ZTO Express was listed on the New York Stock Exchange(NYSE).On September 29,2020,the Comp

35、any was listed on the Main Board of The Stock Exchange of Hong Kong Limited(HKEX)under chapter 19C of the Hong Kong Listing Rules,becom-ing the first Chinese express delivery company listed in both the United States and Hong Kong,China.On May 1,2023,the Company s voluntary conversion of its secondar

36、y listing status to primary listing on the Main Board of HKEX became a dual primary-listed on the HKEX and the NYSE.ZTO Express is the worlds largest express delivery company in terms of parcel volume.In 2023,ZTO Express handled 30.2 billion parcels,representing a year-on-year growth of 23.8%.The Co

37、mpanys market share reached 22.9%,maintaining its position as the industry leader for eight consecutive years.ZTO Express has the largest network with the most extensive,the most intensive and the deepest coverage among the private opera-tors in China.As of the end of 2023,ZTO Express operated more

38、than 31,000 outlets,99 domestic sorting hubs,464 sets of automated sorting equipment,approximately 6,000 direct network partners,over 10,000 line-haul vehicles,including about 9,200 high-ca-pacity trailer trucks,and more than 3,900 line-haul routes,as well as a network reaching more than 99%of the c

39、ounty-level cities,and covering over 96%of the village-level cities.302Parcel volumebillion99Domestic sorting hubs31,000+ZTO service outlets 99%+County-level cities coverage6,000Direct network partners10,000+Self owned line-haul vehiclesParcel volume30.2billionYoY growth rate 23.8%6,000Direct networ

40、k partnersAutomated sorting equipment464setsDomestic sorting hubs99About ZTO Express0605ZTO E2023 ESG ReportHonors&Awards 2023Core PhilosophyDuring the reporting period,the Company received the following awards:The 21st National Youth Civilization2022 Shanghai Safety Demonstration Unit2022 Qingpu Di

41、strict Service Industry Top Ten2023 Shanghai Excellent Learning Enterprise and InstitutionThe First Hangzhou Charity Award for Institutional DonationsTop 500 Private Enterprises in China in 2023(341st)Top 100 Private Enterprises in Chinas Service Industry in 2023(80th)2022 Contribution Award for Kee

42、ping Traffic Safe and Smooth2022 Special Contribution Award for Express Industry of CITES2022 National Advanced Logistics EnterpriseScience and Technology Progress Award of CFLP in 20232023 Top 50 Logistics Enterprises in China(9th)2023 Shanghai May Day Labor Award2023 Leading Enterprise of Shanghai

43、 Productive Service IndustryHonor of Charity Donation and Love for Humanity 2022 Hurun Brand List(70th)2023 Chinas Top 500 Brand Value(196th)Ministry of Transportation and CommunicationsState Post BureauState Post BureauPing An Shanghai Construction Coordination GroupShanghai Qingpu District Peoples

44、 GovernmentShanghai Qingpu District Talent Work Leading GroupPeoples Government of Hangzhou,Zhejiang ProvinceAll-China Federation of Industry and CommerceAll-China Federation of Industry and CommerceChina Express AssociationChina Express AssociationChina Communications and Transportation Association

45、China Communications and Transportation AssociationChina Federation of Logistics and PurchasingChina Federation of Logistics and PurchasingShanghai Federation of Trade UnionsShanghai Productive Service Industry Promotion AssociationShanghai Charity FoundationHurun Research InstituteBrand FinanceName

46、 of Honor(incomplete list)Award institutionManagement philosophyFair,efficiency and results-orientedOperation philosophyIntegrity,transparency and win-win resultsDevelopment philosophyStable,strong,ambitious and change-seekingTalent philosophyTalents are the driving forceSafety philosophySafety is b

47、enefitService philosophyAll for outlets,and all for customersCorporate missionBringing Happiness to More People through Our ServicesCorporate visionBecome a sustainable century-old enterprise with dignity and respectCore valuesShared Success,Trust and Accountabili-ty,Innovation and EntrepreneurshipC

48、orporate spiritPersistence,focus and perseverance2023 Exemplary Case of Deep Integration and Development of Supply Chain Management Service and Manufacturing Industry2022 National Postal Express Industry Youth Production Safety Demonstration Post2018-2019 National Civilized Unit of Transportation In

49、dustry(Review)2022 Top Ten Public Welfare Enterprises of the Year of Public Welfare ShanghaiShanghai Municipal Civil Affairs Bureau,Shanghai Public Welfare New Media Center,etc.Shanghai Municipal Commission of Economy and Informa-tion Technology,Shanghai Municipal Postal AdministrationShanghai Munic

50、ipal Office of Learning Society Construction and Lifelong Education Promotion Committee2022 Outstanding Talent Team Award for Innovation and Entrepreneurship in Qingpu District2022 National Advanced Logistics Enterprise Innovation and Growth AwardCore Philosophy/Honors&Awards 20230807ZTO E2023 ESG R

51、eportWe firmly believe that a sound Environmental,Social and Governance(ESG)management system is the internal foundation for the Company to effectively fulfill our environmental and social responsibilities.ZTO Express is committed to continuously improving its ESG governance system,promoting the lon

52、g-term and sustainable development of its business,and creating lasting value for all stakeholders.ESG ManagementThe Company continues to improve its ESG governance by establishing a top-down ESG governance structure and management mechanism.The Board of Directors,as the highest decision-making body

53、 for ESG governance at ZTO Express,holds ultimate responsibility for the Companys ESG initiatives.Under the Board of Directors,the ESG Committee1 is responsible for assisting the Board in formulating and reviewing the Companys ESG management policies,governance structures,operational management,and

54、performance evaluation.It also regularly reports on the performance of ESG-related initiatives to the Board and provides recommendations while overseeing the implementation of corresponding improvement plans.The ESG Committee establishes an ESG working group as a comprehensive coordination body,resp

55、onsible for preparing prelimi-nary work for ESG Committee decisions.The group collaborates with various departments,units,and subsidiaries of the Company to fully implement ESG initiatives.It regularly reviews and summarizes the progress and effectiveness of ESG-related efforts and report to the ESG

56、 Committee.ESG Management StructureUnderstanding the concerns of stakeholders helps us to develop sustainable development plans and future business policies.We adhere to the principles of openness,transparency,and collaboration,actively engage in stakeholder communication,and maintain close relation

57、ships with all parties through diverse channels to ensure that their demands are fully understood and effectively addressed.By engaging with stakeholders,we seek to understand their priorities and expectations regarding ESG issues and gather feedback and suggestions on the Companys ESG performance.S

58、takeholder EngagementZTO Express ESG Governance StructureStakeholder CategoryTopics of InterestCommunication ChannelsGovernment andregulatory agenciesShareholders and investorsCustomers and consumersEmployeesFranchise OutletsSuppliers and ContractorsPartnersCommunitiesMedia Compliance Rural revitali

59、zation Green development Support for community development Operational risk management Regulating corporate governance Data privacy and security Investor rights and interests Secure delivery and transportation Product and service optimization Data privacy and security Compensation and benefits Secur

60、e delivery Health and safety Career development Customer satisfaction Support for outlet development Supply chain ESG management Progress of industry Business integrity Community development Rural revitalization Support for community development Rural revitalization Technology innovation Submission

61、of official documents Thematic session Regular announcement Reception of government research team Shareholders meeting Release of corporate earnings Press release,announcement and road show Satisfaction survey Regular communication and talks Customer survey Employee communication Staff training Empl

62、oyee activity Outlet assessment Outlet visit Supplier assessment Supplier visits Open and transparent bidding process Industry exchange Field survey Charity campaign Volunteer service Press release Media communication Social responsibility and sustainability disclosureBoard of DirectorsESG Committee

63、Supervision and management of ESG strategy,policy formulationDecision-markingOrganizationRelevant Functional DepartmentsImplementation of ESG policies and objectivesExecutionESG Working GroupImplementation and coordination of specific ESG actions,facilitating the implementation of related ESG initia

64、tives1For more information on the functions of the ESG Committee,please refer to the Revised and Restated Authority Scope of the ESG Committee.ESG Management1009ZTO E2023 ESG ReportZTO Express Materiality Issues MatrixProcess of Identification and Assessment of Material IssuesLowImportance to the su

65、stainable development of ZTOHighHighZTO Express regularly evaluates ESG issues related to its sustainability from two dimensions:the importance to ZTOs sustainable development and the importance to stakeholders,based on feedback from stakeholders and global sustainability trends.In accordance with t

66、he Hong Kong Stock Exchanges Environmental,Social,and Governance Reporting Guide,combined with GRI standards,SASB,capital market rating agencies,and industry peers focus issues,and considering industry characteristics and corporate culture,we have identified 21 important issues highly relevant to th

67、e Company.During the reporting period,we reviewed and evaluated the material topics.We continued to monitor and allocate resources to manage all issues that affect the Company and stakeholders.The specific material topics matrix is as follows.Assessment of Materiality Issues Occupational health and

68、safetyDiversity and inclusionData and privacy safetyDelivery safety Compliance and business ethics Energy management and GHG emissionReduction of pollution Product service and innovatioWin-win cooperationCorporate governanceRisk management Water resources managementWaste managementCommunity particip

69、ationUse of packaging materialsResponse to climate changeStaff training and development Employee rights,interests and benefitsSupply chain managementQuality customer service Rural revitalization and common prosperityIdentifying Potential Materiality IssuesWe identified 21 material topics for the Com

70、apnys business based on regulartoy requirements,peer practices,media analysis,and capital market concernsMateriality Issues MatrixWe scored and ranked all topics in terms of their materiality for the Company and for stakeholders and formed our materiality matrixSkaeholder EngagementWe formulated a s

71、takeholder engagement plan under which we conducted in-depth interviews and distributed ESG materiality surveys to governments and regulators,shareholders and investors,employees,consumers,and the public to understand key ESG topics of concern to stakeholersConfirmation of Materiality IssuesWe then

72、submitted the materiality matrix to management for confirmation of the identified topics and their degree of materiality01020304Importance to stakeholdersESG Management1211ZTO E2023 ESG ReportZTO Express firmly believes that Party building is a cornerstone for enterprises to effectively exert the po

73、litical and organizational advantages of the Party organization and achieve steady forward development.Over the years,we have innovatively cultivated the Happy ZTO Express Party building brand to use political leader-ship and the power of trust to irrigate the growth of the enterprise.We have always

74、 adhered to the Partys leadership in our work.In the new era,we have been modifying our thinking,taking up responsibilities,and cultivating a good corporate culture.We strive our best to maintain a high degree of ideological consistency with the CPC Central Committee,in the action of the unity of kn

75、owledge and practice,the courage to innovate,the courage to take responsibility,to hand over new answers of the times.01TOPICPromoting High-Quality Developmentto Fulfill the Mission of the TimesLearning the Thoughts and Grasping the Pulse of the TimesThe Party Committee of ZTO Express insists on in-

76、depth study and implementation of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and the spirit of the 20th National Congress of the CPC.Through thematic education,Party members and cadres were encouraged to deeply understand the decisive significance of the Two Establish

77、ments,consciously enhance the Four Awareness,firmly establish the Four Matters of Confidence,achieve the Two Safeguards,and always maintain a high degree of consistency with the CPC Central Committee in ideology,politics,and actions.Through the development of three meetings and one lesson,each branc

78、h of our Party committee carries out the theme of the Party day and other forms of learning plans and Party building activities.The participants learned to inherit and carry forward the Partys fine traditions and good style,actively organize various types of voluntary activities such as peoples serv

79、ices,civilization publicity,environmental remediation,and carry out activities such as fire drills,distribution of cold wave warming materials,open day for elemen-tary school students to experience the new technology of logistics in ZTO Express and a Party branch taking concrete actions.The general

80、requirements of thematic education learning ideas,strengthening the Partys characters,emphasizing application and achieving new contributions ensuring that the overall requirements are truly comprehended and effectively implemented.April 2023,the Party Congress of the Party Committee of ZTO Express

81、was held at the headquartersTopic One:Promoting High-Quality Development to Fulfill the Mission of the Times1413ZTO E2023 ESG ReportShouldering Responsibilities and Being a Pioneer of the TimesAs an industry leader,ZTO Express strives to take action and take responsibilities in the development of th

82、e industry.Led by a high sense of responsibility and mission,ZTO constantly works on self-improvement in quality and ability,sets a good example for the industry,strives to become a global first-class integrated logistics service provider,provides practical solutions to problems in the industry,and

83、acts as a real pioneer of the times.The ZTO Express Series of Red Lessons was named by the Shanghai Zhejiang Chamber of Commerce as the second excellent Party building brand best practice cases.Meanwhile,the Party building brand project Innovative Cultiva-tion:To pass the voices of the Party to the

84、nerve endings won the Ten Character-istic Programs for Grassroots Party Building,One Branch One Brand,of Qingpu District,Huaxin Town.Loyalty and Dedication to the Party,Responsibility and Bearing to ZTO Express July 1st Party Day Activity at ZTO Express Headquarters2023 Shaanxi Management Center War

85、mth in Winter CampaignTopic One:Promoting High-Quality Development to Fulfill the Mission of the Times1615ZTO E2023 ESG ReportPanorama of Green DeliveryRoutes for ZTO ParcelsSlim TapeOnly 45mm in width 100%purchasingratio used across the networkto reduce resource wasteFully Biodegradable BagsGreen b

86、iodegradable and recyclableRecycled Express BoxesRecycled and resource-saving 360,000 boxes in the whole networkcan be recycled 8 times on averageElectronic Waybillnew waybill saves 80%of paperused compared with the old ones100%usage rateto reach complete coverageRecyclable Transit BagReusable for o

87、ver 100 timescumulative input volume of44.15 million bags across thenetwork an increase by 37%compared with the year beforeGreen TransportationGreen PickupPackaging Recycling BinsSorting,recycling and reusing cartons andother packaging materials150 million cartons were recycled in 2023Unmanned Vehic

88、le DeliveryHuman-machine coordinationtechnology and efficiency to provide userswith more convenient servicesGreen Delivery VehiclesGreen delivery at the endpoint through electricand hybrid electric vehiclesusing fuel cell to achieve energy savingand emission reductionDrone DeliveryReducing the burde

89、n of ground transportationlowering energy consumption per unit and solving the last mile delivery problemin mountain villages Optimized Transportation RoutesAbout 3,900 routes for mainline transportationusing algorithms to increase loading ratesreduce frequency and minimizepollution emissions New En

90、ergy VehiclesLNG-powered vehicles areused in some areasfueled by liquefied natural gasto be more eco-friendlyPhotovoltaic FacilitiesClean energy from grid-connected powergeneration,green and energy-saving34%year-on-year growth of photovoltaicpower generation in 2023High-capacity Trailer TrucksAbout

91、9,200 self-owned high-capacity dumptrucks to enable upgraded capacityreduced weight and improved energy efficiencyGreen SortationIntelligent Sorting Equipment464 sets of automated sorting equipment for small and large parcels more efficient,low energy consumption low noise,low pollutionGreen Last-mi

92、le Delivery02TOPICResponding toClimate ChangeEstablishinga Green Postal RouteCorresponding SDGs Responding to climate change Energy management and greenhouse gas emissions Packaging material usage Waste management Actively identify and undertake climate actions,strengthen energy management,increase

93、investment in clean energy and equipment upgrades,and reduce greenhouse gas emissions Promote green packaging,improve resource utilization efficiency,reduce waste,and guide green and low-carbon express consumption patternsTopics addressed in this chapterOur actionsCurrently,climate change not only p

94、oses severe challenges to the sustainable development of enterprises and society but constitutes a pressing global issue that requires urgent counteractions.ZTO Express is committed to building a green logistics system,implementing green operations in various scenarios such as transportation,warehou

95、sing,and office work.The Company also continues to optimize packaging,and help achieve Chinas goal of carbon peaking and carbon neutrality as it endeavors to address and mitigate the impacts of climate change.Topic Two:Responding to Climate Change,Establishing a Green Postal Route1817ZTO E2023 ESG R

96、eportAs a responsible enterprise,we are deeply aware of the impact of climate change on operations.Following the framework of the Task Force on Climate-related Financial Disclosures(TCFD),we incorporate climate change into our corporate governance and strategic framework,strengthen the identificatio

97、n and management of climate change risks and opportunities,and regularly review the effectiveness of low-carbon development to support the achievement of Chinas goal of carbon peaking and carbon neutrality.Additionally,the Company has established policies and systems such as the Firefighting and Eme

98、rgency Evacuation Drill System and Flood Control Emergency Plan to reduce the impact of physical risks on the Companys normal operations.Responding to Climate ChangeThe Companys Board of Directors is responsible for climate change-related risks and opportunities,and authorizes the ESG Committee to o

99、versee the related work,including risk identification,assessment,and management.At the same time,the ESG Committee reports to the Board of Directors annually on relevant ESG matters,including climate risks.We link board compensation performance with the Companys climate change performance,continuous

100、ly enhancing the Companys level of climate change management.Climate Change ManagementsWe conduct climate scenario analysis based on the Shared Socioeconomic Pathways(SSP)assumptions adopted by the Intergov-ernmental Panel on Climate Change(IPCC),taking into account the objective conditions of Compa

101、ny operations and potential external environments that may be encountered in the future,such as natural ecosystems and socioeconomic environments.Factors identified include temperature rise,sea level rise,extreme weather events,climate policies,and changes in energy technol-ogies.We choose SSP1 and

102、SSP3 pathways for climate scenario analysis.Climate Change Strategy2Source:IPCCAR6 Climate Change 2021:The Physical Science BasisCategorySSP1SSP3Natural 2SocioeconomicEnvironmentTemperature RiseSea Level RiseExtreme WeatherChanges inEnergy TechnologyHeavy Precipitationon LandNew EnergyTransportation

103、Climate PolicyBy 2040,there will be a 1.5 rise in temperature above pre-industrial levels(1.5 rise by 2100)By 2040,there will be a 0.1-meter rise in sea levels compared to the present(0.4-meter rise by 2100)With a temperature rise of 1.5-2.0,precipitation intensity is projected to increase by 10.5%-

104、14%The frequency and intensity will increase to some extentSeveral countries,regions,and economic entities are expected to introduce progressively stricter low-carbon policies and regulations,committing to long-term net-zero emissions or carbon neutrality goals,aiming to manage global environmental

105、issuesThere will be a reduction in fossil fuel usage,with a shift towards renewable energy sourcesThe proportion of new energy vehicles is expected to rapidly increase,becoming the primary direction for transportation vehiclesMajor countries have already initiated climate policy actions,but some cou

106、ntries and regions lack carbon neutrality goals and do not have detailed near-term actions or planned targetsNon-fossil fuels still account for a certain proportion of primary energy consumptionThe proportion of new energy vehicles is gradually increasing,while traditional energy vehicles are underg

107、oing orderly transitionBy 2040,there will be a 1.6 rise in temperature above pre-industrial levels(3.9 rise by 2100)By 2040,there will be a 0.1-meter rise in sea levels compared to the present(0.6-meter rise by 2100)With a temperature rise of 2.0-4.0,precipitation intensity is projected to increase

108、by 14.0%-30.2%The frequency and intensity will significantly increaseWe analyzed the potential impacts on operations under SSP1 and SSP3 scenarios,identifying potential physical risks and transition risks in different scenarios.Climate Change Risk and Opportunity AnalysisUnder the SSP3 scenario wher

109、e there is a high level of greenhouse gas emission and a significant increase in the proportion of extreme weather events,ZTO Express will face more challenges from physical risks.We have identified and analyzed the potential impacts under acute and chronic physical risks.Risk Identification and Res

110、ponse for ZTO Express Operations Under the SSP3 ScenarioMain Impact DescriptionDimensionsof ImpactAcuteHeavyPrecipitationand FloodsExtremeHeat/ColdWeatherRisingAverageTemperaturesRising SeaLevelsTyphoonsChronic Increased risk of flooding and damage to sorting hubs and outlets in low-lying areas Impa

111、ct on transportation timeliness,increasing the risk of parcel damage and loss Severe damage to Company facilities and vehicles Impact on employee commuting and courier delivery Potential damage to power facilities affecting the normal operation of operational sites Potential impact on water and elec

112、tricity usage in operation and office premises,disrupting normal operations Increased risk for drivers and outdoor workers Increased energy consumption to maintain constant temperature in operation and office premises Damaged operating routes affecting transport and delivery Increased risk of damage

113、 to outlets due to typhoons Adverse effects on employee health due to hot weather Increased demand for cooling equipment Infrastructure damage Increased operating costs Threat to personnel health Decrease in revenue Increased operating costs Threat to personnel health Decreased revenue Infrastructur

114、e damage Threat to personnel health Increased opera-tional costs Reduced operational stability of assets and transportation routes in high-risk coastal areas Infrastructure damagePhysical RiskTopic Two:Responding to Climate Change,Establishing a Green Postal Route2019ZTO E2023 ESG ReportIn the SSP1

115、scenario where there is a tightening of macro policies under low emissions scenarios and a wave of societal low-carbon transformation,ZTO Express will face more challenges from transition risks.Based on four dimensions of policy and regulations,market,technology,and reputation,we identified and anal

116、yzed the potential impacts of transition risks.Transition RisksWhile climate change brings risks,ZTO Express firmly believes that the trend towards low-carbon and green development also presents various opportunities for corporate transformation and growth.During the reporting period,the climate cha

117、nge-related opportunities identified,and the corresponding measures are as follows:Opportunities from Climate ChangeOpportunitiesResource EfficiencyImprove resource efficiency through more efficient operations and production methods to reduce greenhouse gas,pollutant,and waste emissions;practice sus

118、tainable development and circular economy concepts to reduce medium to long-term operating costs for the CompanyTypes of EnergyIntroduce more renewable energy sources in the production and operation processes,to enhance our ability to cope with changes in energy supply;obtain supportive policy incen

119、tives,gain advan-tages in the carbon market,and reduce medium-to long-term operating costsProducts and ServicesContinuously innovate green and low-carbon products to ensure provision of products and services that align with green consumption principles and acquisition of competitive advantages in th

120、e industryClimate ResilienceImplement low-carbon transition measures such as process optimization and adjustment of product types to enhance resilience and overall risk resistance capabilityPolicy and Regulations With the continuous enhancement of regulatory compliance requirements,the Compa-ny need

121、s to actively engage in low-carbon transition,data management,and information disclosure Layout energy structure transformation,shifting from fossil energy to clean energyMarket As the green consumption trend further develops,the Company needs to increase invest-ment in low-carbon transition,such as

122、 equipment upgrades and low-carbon technology developmentTechnology To respond to compliance and market demands,the Company needs to increase invest-ment in low-carbon technology research and development,including process optimiza-tion,developing green and circular low-carbon packaging,reducing pack

123、aging waste,and minimizing the use of non-biodegradable materialsReputation An increasing number of stakeholders are paying attention to the climate response performance of listed companies.If the Company fails to take appropriate measures to address climate-related issues,it may affect the Companys

124、 reputation Risk Identification and Response for ZTO Express Operations Under the SSP1 ScenarioTopic Two:Responding to Climate Change,Establishing a Green Postal Route2221ZTO E2023 ESG ReportWe will continue to drive internal low-carbon transformation,clarify low-carbon development goals,conduct ann

125、ual performance assessments,and ensure adequate achievement of established goals.Climate Change Indicators and TargetsWe realize that optimizing energy use is one of the important pathways to reduce greenhouse gas emissions from operations.During the reporting period,we constantly explored opportuni

126、ties for energy conservation and efficiency improvement through management upgrades and technological innovations.We also continuously tracked and comprehensively improved energy efficiency by analyzing the implementation of energy management goals.Additionally,we vigorously promoted the optimizatio

127、n of energy structure and actively adopted clean energy to increase the proportion of clean energy used.In the field of photovoltaic power generation,in 2023,the companys photovoltaic installation area was approximately 370,000 square meters,with an actual power generation of 40,150 megawatt-hours,a

128、n increase of 34%compared to the previous year,of which 26,010 megawatt-hours were for self-use.ZTO Express strictly adheres to relevant laws and regulations in the locations where it operates,such as the Environmental Protec-tion Law of the Peoples Republic of China and The Energy Conservation Law

129、of the Peoples Republic of China.Through establish-ing and improving internal energy management systems and process requirements,the Company sets and continuously tracks energy targets to enhance energy efficiency awareness among employees through training and promotional activities.For outsourced l

130、ogistics suppliers,the Company is committed to improving their environmental performance and aims to jointly create a green operating system by considering the following criteria:whether warehouse resources have photovoltaic facilities,whether vehicle emissions meet China V standards or above,and wh

131、ether there are new energy vehicle resources for delivery.Energy Conservation and Carbon ReductionEnergy SavingAssessment ProcessCalculatingIdentifyingListingProposingImprovingReviewingTrackingAnalyzingCalculating the achievement status of equipment usageRectification and improvement of equipment op

132、timizationIdentifying centers with high abnormal rates and unmet achievements,listing them as centers requiring optimizationProposing equipment optimization plans and measuresBased on the centers requiring optimization,listing the data items with higher abnormal rates of equipment operationAnalyzing

133、 operational data of equipmentReviewing the effectiveness of the optimization centers improvements to ensure normal operation of equipment usage dataContinuously tracking the usage data of optimization center equipmentGHG Emissions Goal of ZTOIndicatorGHG emissions intensity per parcel(kg CO2e/parce

134、l)TypeBase YearGoal in 2028Intensity202820%reductionZTO Express is committed to building a green,circular,and low-carbon express logistics system.We are driven by technological innovation,guided by the principle of green and low-carbon development,aspiring to lead the sustainable development of the

135、logistics industry.We focus on the low-carbon transformation of transportation,the clean and intelligent sortation,and the improvement of network operation quality and efficiency.We aim to achieve a 20%reduction in GHG emissions intensity per parcel produced by the Company by 2028,and work together

136、with value chain partners to steadily advance on the path of green,low-carbon,and high-quality development.ZTO Expresss Commitment to Energy Conservation and Emission ReductionDeepening research and development of low-carbon technologiesContinuously increase investment in research and development of

137、 low-carbon operational technologies;achieve end-to-end greening and intelligent transformation of parcel transportation by increasing the usage of green packaging,expanding the scope and proportion of new energy usage,etc.Enhancing consumer awareness promotionProvide rewards and awareness promotion

138、 to consumers to help them understand daily recycling methods of express packaging materials and reinforce consumers understanding of emission reductionExploring voluntary emission reductionActively explore the feasibility of voluntary emission reduction projects and methodologies in the express del

139、ivery industry递联四海 汇万物 通天下2623Topic Two:Responding to Climate Change,Establishing a Green Postal Route24ZTO E2023 ESG ReportNote 3:Energy consumption is calculated with reference to the National Standard of the Peoples Republic of China GB/T 2589-2020General Rules for the Calculation of Comprehensiv

140、e Energy Consumption.Note 4:Greenhouse gas emissions are calculated with reference to the 2006 IPCC Guidelines for National Greenhouse Gas Inventories,and the Guide to Greenhouse Gas Accounting and Reporting for Enterprises in Other Industries(for Trial Implementation)issued by the National Developm

141、ent and Reform Commission of the Peoples Republic of China,and the electricity conversion factor(average emission factor of Chinese power grid in 2022:0.5703 kg/kWh)is derived from the Notice on the Management of Greenhouse Gas Emissions Reporting by Enterprises in the Power Generation Industry in 2

142、023-2025 issued by the Ministry of Ecology and Environment.In 2023,ZTO Expresss Hefei Sorting Hub continued its commitment to clean energy.We increased investment in solar panel installation on unused rooftops,adding 20,000 square meters of solar power generation facilities.This expansion resulted i

143、n an annual electricity generation of 2.2 million kilowatt-hours,providing a continu-ous supply of green electricity to the factory area.Additionally,we upgraded and replaced existing inefficient and high-energy-consuming power supply and usage equipment,and optimized sorting operation process to en

144、hance equipment efficiency,achieving an annual electricity saving of approximately 500,000 kilowatt-hours.Active involvement in clean energy and equipment upgradesEnergy ConsumptionUnit2023 DataTonm3Megawatt-hourMegawatt-hourMegawatt-hour732,619.73648,856.31444,2841,120,62340,15026,01083,763.42681,5

145、57Total energy consumptionDirect energy consumptionDieselNatural GasRenewable energy generationRenewable energy usageIndirect energy consumptionPurchased electricityTransparent tapeWaybillOthersGreenhouse gas emissions4Metric Tons CO2eMetric Tons CO2eMetric Tons CO2eMetric Tons CO2eMetric Tons CO2eM

146、etric Tons CO2e1,402,275388,6922,15154,53798,2771,945,932365101507Energy consumption density3Tons of Standard CoalEquivalent per RMB10,000Tons of Standard CoalEquivalent per RMB10,000Tons of Standard CoalEquivalent per RMB10,000kg CO2e per RMB10,000of revenuekg CO2e per RMB10,000of revenuekg CO2e pe

147、r RMB10,000of revenue0.1690.0220.191Greenhouse gas emission intensityDirect emissions(Scope 1)Indirect emissions(Scope 2)Total greenhouse gas emissionsDirect energy consumption densityIndirect energy consumption densityOverall energy consumption densityOther indirectemissions(Scope 3)Direct emission

148、s(Scope 1)Indirect emissions(Scope 2)Total greenhouse gas emissionsTons of StandardCoal EquivalentTons of StandardCoal EquivalentTons of StandardCoal Equivalent递联四海 汇万物 通天下2625Topic Two:Responding to Climate Change,Establishing a Green Postal Route26ZTO E2023 ESG ReportZTO Express Green Packaging Tr

149、ainingZTO Express strives to reduce resource consumption and waste from the source.We have formulated the Regulations on Supervi-sion and Management of Value-added Services and the ZTO Express Parcel Packaging Operation Specification to clarify packag-ing principles,tools,and criteria for selecting

150、packaging materials.We require minimizing the use of packaging materials as much as possible while meeting market demand.Additionally,we continuously invest in packaging material selection and recycling,such as through exploring various research and application scenarios for green and recycled packa

151、ging materials.These scenarios include efficient refrigerant development,high-insulation bag development,reuse of discarded corrugated cardboard,and development of circular folding turnover baskets to minimize the environmental impact of packaging and packaging waste to the greatest extent possible.

152、As of the end of the reporting period,the proportion of our e-commerce parcels without secondary packaging reached 93.34%,the proportion of procurement and use of standardized packaging materials reached 91.83%,and the proportion of parcels sealed according to specifications reached 95.15%.We also u

153、sed recyclable packaging for over 25.22 million parcels and recovered over 146.52 million corrugated cardboard boxes in good condition for reuse.Packaging Material UsagePackaging Procurement VolumeUnitData from 2023kgkgkgkgkgkgkg per Million RMB777,89529,132,7493,624,12033,976,125111,685442,0301,681

154、.91Transparent TapeWaybillWaterproof BagEnvelopeCartonOther PackagingPackaging Material DensityIn the transit process,we work to gradually increase the proportion of environmentally friendly bag usage.We have deployed recyclable environmentally friendly bags with RFID electronic tags in the sorting

155、hubs.While traditional woven bags can only be used about twice,these bags can be reused more than 100 times.With the use of RFID electronic tags,we can collect information on package transfers,losses,and destinations.This not only reduces waste and pollution but also improves the efficiency of opera

156、tions in the transit center to achieve green,circular,and intelligent processes in the transit process.Additionally,to enhance the efficiency of the circulation of environmentally friendly bags,the Company has developed a dedicated network distribution and recycling system.This system facilitates th

157、e circulation and reuse of environmentally friendly bags between primary outlets and subordinate outlets.It enables tracking and inventory management of bags distributed from primary outlets to subordinate outlets.Moreover,it utilizes empty vehicles in central trunk transportation to transfer enviro

158、nmentally friendly bags to enable rational sched-uling and tracking management of these bags.Increase the recycling capacity of environmentally friendly bagsTo continuously strengthen the internal dissemination of knowledge regarding green packaging,we have designed and launched a series of speciali

159、zed training courses on green packaging.These courses promote green packaging norms,advocate against excessive packaging,and emphasize resource conservation to prevent environmental pollution.Furthermore,through such forms as spot-checks and surveys on packaging at various outlets,we conduct closed-

160、loop assessments of the training results to ensure practical implementation of green packaging governance measuresTopic Two:Responding to Climate Change,Establishing a Green Postal Route2827ZTO E2023 ESG ReportLinking the WorldUniting All,Reaching BeyondZTO Express focuses on its core express delive

161、ry business,committed to meeting the growing demand for a better life through innovative products and high-quality services.With the Shared Success network partner model and centralized management of its own Zhongtian system,it builds a differentiated underlying franchise network.By leveraging core

162、express infrastructure and resource integration capabilities,ZTO Express gradually constructs a comprehensive logistics ecosystem,fulfilling its corporate mission of Bringing Happiness to More People through Our Services through practical actions.Quality customer service Data and privacy safety Prod

163、uct service and innovation Delivery safety Supply chain management Win-win Cooperation Actively integrate technology and services to ensure customer privacy security and enhance customer service experience Embrace digital transformation and upgrades to meet diverse customer needs through innovative

164、quality products and services Expand direct linkage to the last mile,strengthening frontline network construction Implement Green Procurement Principles to enhance supply chain ESG management Collaborate with upstream and downstream partners to achieve win-win cooperationCorresponding SDGsTopics add

165、ressedin this chapterOur actionsLinking the World Uniting All,Reaching Beyond3029ZTO E2023 ESG ReportZTO Express continues to deepen scientific and technological innovation.With our advanced R&D management mechanism,we actively carry out independent research and development,integrate digital technol

166、ogy into the whole scenario of express delivery business.We also aim to improve the operational efficiency of the whole chain with technological innovation to meet the diversi-fied needs of customers.Scientific and Technological innovationFocusing on providing consumers and customers with transforme

167、d and upgraded logistics solutions,ZTO Express continues to increase R&D investment,improve the R&D innovation mechanism,accelerate the commercialization of achievements,and help realize high-quality and rapid delivery of innovation achievements on the business side.ZTO Express has built a one-stop

168、production and research work platform(DevOps)from the decentralized construction of various departments to unified construction of the enterprise.This platform integrates the whole process functions of production and research,such as demand management,defect management,task management,version iterat

169、ion management,project manage-ment,test management,goal management,application and cluster management,release management.This helps to smooth the communication of information of various links,realize open and efficient collaboration,and improve the energy efficiency of R&D.R&D Innovation ManagementZ

170、TO Express actively practice the concept of Internet+Logistics,empower our business with digitalization,realize data service business processes,drive business decisions.Through self-developed technology products and technological innovation,we promote the application of digital transformation in the

171、 collection,transfer,transportation and delivery of the whole cycle of express delivery and open up the digital closed loop of logistics.Technological Innovation to Enhance Operational EfficiencyZTO Express One-Stop Work Platform for Production and Research ProcessesZTO Express has always insisted o

172、n innovation as the driving force.We constantly seek to improve the R&D management system,enable innovative industrial layout and product development,and utilize digitalization and intelligence for current transformation and upgrading to create a necessary path of intelligent logistics and better es

173、cort the development of customers businesses.Continuing the Gene of InnovationVersiondevelopmentConstructionTestRegressionTest acceptancePre-releaseLaunchLaunch fortestDevelopment&restorationRequirements/DefectsBranchDevOps ProcessRequirement managementRequirementsIterationKanbancollaborationQuality

174、 follow-upBranch formingCode commitCode scanningCode walkthroughCode mergingDevelopment managementTest use caseTest programDefectmanagementData statisticsQuality analysisTest managementIterativebranchingConstructionTestingDeploymentMonitoringOperation&maintenance/PipelineRequirementsConstructionInte

175、gration testingPre-releaseLaunchCode commitDevOpsNetwork-wide data tracking reports and express tracking to provide vendorswith visualized express informationThrough data integration,scene aggregation and closed-loop operation,ZTO Express provides customers with inbound and outbound tracking service

176、s,realizing real-time waybill tracking status inquiries and operations.At the same time,we also provide express tracking for dozens of roles such as customer service personnel(headquarters,managed areas,outlets),functional personnel at all levels of outlets,couriers,network managers at all levels,an

177、d provides basic information and abnormal data around the dimension of the waybill as the basis for decision-making for users to handle the problems.The inbound and outbound waybill folow-up mechanism provides outlets with operation processing tools for waybill folow-up scenarios,including SMS sendi

178、ng,contacting the recipient for return,contacting the courier,making up track operation,forming a closed-loop order follow-up operation scenarios for customer serviceClosed-loopOperationInbound and outbound waybill folow-up mechanism summarizes and aggregates common abnormal scenarios of outlets,cov

179、ers all waybill folow-up scenarios of outlets,provides real-time data Kanban,reduces query and export operations for outlets,enhancing waybill folow-up management efficiency of outletsScenario AggregationInbound and outbound order follow-up servicesKey Contents of Express Parcel TrackingThrough syst

180、em data integration,we provide real-time order follow-up data query from the first viewpoint of the outlets,support the summary and detailed query of the data-based express status of each level and dimension of the outlets(outlets,contracted areas,couriers,customers,stores),and help the outlets to i

181、mprove the efficiency of order follow-up operationData IntegrationProvide all the scanning track records of the waybill,and comprehensively display the scanning equipment number,scanning time,scanning personnel,weight,current outlet and the outlet to be sent to,the corresponding parcel number,vehicl

182、e number information,etcTracking QueriesUsers can view the order information of the waybill and the privacy of users has been desensitize across the network without affecting business operationsOrder InformationProvide access to the product value-added records of the waybill and a portal for quick r

183、egistration of items to be intercepted,making it convenient for users to registerProduct Value-addedRecords3231Linking the World Uniting All,Reaching BeyondZTO E2023 ESG ReportProduct Matrix of ZTO Expresshas been comprehensively upgradedWe continue to optimize our product structure,improve and upgr

184、ade our diversified product matrix,accelerate the layering of our products and the construction of our ecosystem.At the same time,we continue to further expand our project of Entering Villages and Plants and Going Global and accelerate the construction of the last-mile terminals.During the reporting

185、 period,we launched and upgraded a number of high value-added products to better meet diversified customer needs.Product Innovation AOI Grouping in parcel collection and delivery:Intelligent measures to optimize work efficiencyAOI grouping for collection:The system orders assigned to the collector a

186、re mixed in a list,resulting in low efficiency of parcel collection.To address this problem,press developed and promoted the use of AOI grouping for parcel collec-tion.AOI can be understood as the smallest collection and delivery area,couriers can not only plan a reasonable route to pick up the parc

187、els according to the grouping,but also correct the grouping to improve the efficiency of the order search and pickup,indirectly improving the business volume of the outlets.AOI grouping for delivery:To solve the problem of low efficiency in the sorting,grouping and signing of parcels,ZTO Express des

188、igned AOI four-segment code fence,which will make fine grouping of parcels delivered to the door by couriers according to the address,and improve the efficiency of sorting,delivery and signing!Now available in 7 pipe areas,100+outlets.Express Butler System to provide convenient services for differen

189、t typesof vendorsTo improve the customer service experience of small and medium-sized vendors and large vendors,ZTO Express continues to upgrade and optimize the function of Express Butler System.For small and medium-sized vendors,the Express Butler System can realize intelligent AI group chat after

190、-sales service and automatic parcel interception upon refunding to enable timelier,more automated processing of the after-sales needs of vendors.In addition,express butler for small and medium-sized vendors also contains the on-line waybill self-service recharge function to allow vendors to perform

191、waybill recharge anytime and anywhere.For large vendor groups,express butler provides an independent order docking interface capability,supporting vendors in docking orders through an encrypted interface,and sending back the waybill numbers through the Express Butler System.This not only ensures the

192、 safety of the vendor customer data throughout the whole process,but also assists vendors in completing a closed-loop handling of order manage-ment,waybill printing and shipping within their self-developed systems,greatly enhancing the vendors work efficiency.In terms of after-sales service,the Expr

193、ess Butler System provides large vendors with external interception,return and modification interface,support-ing them to initiate interception,returns,modification and other after-sales work orders within their self-developed online stores via the interface.This significantly enhances the service e

194、xperience for large vendors with self-development systems.ZTO Express strictly abides by the requirements of the Trademark Law of the Peoples Republic of China,Copyright Law of the Peoples Republic of China,Patent Law of the Peoples Republic of China,and Law of the Peoples Republic of China Against

195、Unfair Competition,etc.We have revised the Intellectual Property Management System to incentivize employees to actively participate in the creation and application of intellectual property rights,ensure the quality of patent applications,and promote technological innovation and core competitiveness

196、improvement.During the end of reporting period,we have obtained 192 patents,260 software copyright,712 trademarks,and invested more than RMB2.7 million in intellectual property rights.Intellectual Property Protectionintellectual property rights2.7millionpatents192software copyright260trademarks712ZT

197、O Express Feikuai Half-day delivery by air and landZTO Express HaokuaiPromising pre-delivery call,door-to-door delivery and overtime compensationZTO Express StandardPre-delivery callOrdinary ParcelCompetitive price3433Linking the World Uniting All,Reaching BeyondZTO E2023 ESG ReportUnder the guidanc

198、e of the Belt and Road initiative,ZTO Express Laos has seized the opportunity to integrate and optimize operational resources,and leveraged a mature and comprehensive local service network.With its F2B2C one-stop cold chain service capabilities and the China-Laos-Thai-land comprehensive railway tran

199、sportation advantages,it has developed into a comprehensive logistics service company integrating cross-border cold chain,general cargo transportation,local express delivery,freight transportation,warehouse distribution and railway transportation.ZTO Express has developed into a comprehensive logist

200、ics service company integrating cross-border cold chain,general cargo transportation,local express,freight forwarding,warehousing and distribution,and railroad transportation between China and Laos.As of the end of the reporting period,ZTO Express Laos has opened more than 200 outlets,covering 17 pr

201、ovinces in Laos,contributing to the economic and trade development of China,Laos and ASEAN,while helping to speed up and upgrade RCEP economic and trade cooperation.Connecting Transnational Friendship to Share Economic and Trade DevelopmentAggregate advantageous resources to collaboratively build a

202、new pattern ofliquor logistics and supply chainZTO Express relies on its own resource advantages to build a standardized intelligent liquor supply chain service system by further collaboration with Moutai Logistics.The collaboration also explores the liquor supply chain system model,helps the liquor

203、 industry chain transform and upgrade to intelligence and refinement,and improves efficiency and service experience.Expand the full supply chain of agricultural products and explore new opportunitiesin the logistics of pre-prepared dishesThe distribution of pre-prepared dishes prioritizes the most c

204、ritical demands of freshness and timeliness.ZTO Express relies on the national warehouse and distribution network to strengthen the digital urban distribution platform and self-developed prefabricated vegetable processing management system.This promotes efficient completion of the integrated managem

205、ent of picking,processing,warehousing,distributing and marketing of agricultural raw materials,guaranteeing the freshness and safe delivery of every pre-prepared dishes,and assisting the latest development of the pre-prepared dish industry.The Belt and Road initiative,based on the principles of mutu

206、al consultation,construction,and sharing,seamlessly aligns with the development strategies of various countries.The logistics sectors integration and cooperation are rapidly evolving.Leveraging its strong ground service network and global resource integration capabilities,ZTO Express is building a c

207、omprehensive logistics system centered around courier services to accelerate the development of a globally accessible and independently controllable international logistics network.Going Global for a World Without BordersProducts and Services of ZTO Global LogisticCross-border export:We provide expo

208、rt delivery service,covering more than 220 countries and regions around the worldCross-border import:We provide full chain import product services from overseas to mainland ChinaContainer shipment and warehousing:Our global container line provides overseas Chinese with transshipment from China to al

209、l over the world;customizable,safe and fast serviceCross-border ServicesWe have local transportation network in 6 ASEAN countries,South Korea and 5 African countries to provide cross-bor-der import and local delivery servicesOverseas Local ServicesWe provide local warehousing and delivery services,a

210、s well as import and export forwarding services in Hong Kong,ChinaLocal Services in Hong Kong,Macao and Taiwan We provide special product services such as payment collection for customers,cash on delivery and time-sensi-tive parcel delivery to meet the logistics needs of different scenariosSpecialty

211、 ProductsZTO Express actively embed itself in the upstream and downstream industrial chain of many industries,customize personalized services for customers,and provide a package solution integrating transportation,packaging,warehousing,embedding in the supply chain,and after-sales service,making ZTO

212、 Express an indispensable link in the industrial chain of many industries.Products Enable Multi-industry DevelopmentExpand the spare parts logistics supply chain to install the accelerator forcustomers integrated developmentHow to efficiently and accurately manage a large number of different types o

213、f automotive spare parts and ensure their timely delivery to service centers across the country is a typical challenge in spare parts supply chain management of the automotive industry.Relying on the resource advantages of the two large networks of express and express transportation,ZTO Express enha

214、nces the flexibility and responsiveness of the customers spare parts logistics network,and ensures that orders are processed in the most appropriate network through the seamless connection between the two networks to improve the transportation efficiency of the entire spare parts supply chain.This c

215、ooper-ation model reduces logistics costs by about 10%for customers,while the delivery time reaches the expected service level,and the efficient service meets the business needs of terminal 4S stores and dealers.3635Linking the World Uniting All,Reaching BeyondZTO E2023 ESG ReportZTO Express conscie

216、ntiously implements the Postal Law of the Peoples Republic of China,the Safety Supervision and Management Measures of Postal Industry,the Operational Regulations for Work Safety of Express Delivery and other laws and regulations.We strictly implement the three systems to ensure the safety of deliver

217、y.In 2023,the Company carried out special control measures for prohibited goods,batteries,and real-name information for delivery,continuously improving the safety management of express delivery.Implementing the Three SystemsZTO Express regards customer service as one of the core competitiveness of t

218、he Company.we always adhere to the customer-cen-tered service concept,guarantee the safety of delivery,comprehensively construct the customer service system,enhance the service consciousness of customer personnel,and wholeheartedly provide customers with professional express logistics services.Prior

219、itizing Customer ExperienceZTO Express strictly implements the three systems of real-name pickup,open-box inspection and security check.This aims to strengthen the safety management mechanism of delivery,focus on safe delivery,and promote safety control by scientific and technological means for ensu

220、ring the safety and smoothness of delivery channels.Safe DeliveryTargets and Achievement of Delivery SafetyGoal-setting:Focus on the control of high-risk prohibited goods to reduce the occurrence of major safety incident occurred;deploy 52 intelligent security check machines and intercept 31,500 ord

221、ers during the ordering phase;develop and promote online systems such as penal-ties for prohibited goods,interviews for penalty orders,electronic signing of commitment letters,and blacklisting of prohibited item customersRectification initiatives:Self-examination and self-correction by outlets;warni

222、ng interviewsAchievements:0 delivery safety accidents in 2023 and 0 key accident incidents caused by prohibited goodsIn order to solve the problems of fire accident losses caused by illegal item pickup,slow information transmission at outlets,poor control effect of major conferences,and outlets inab

223、ility to collect parcels,ZTO Express carried out a special enhancement program during the reporting period to improve the perceived efficiency of outlets/centers and to enhance the safety of express delivery.Specialized Program to Enhance Delivery SafetyIn terms of delivery control,the Company carri

224、es out grading and quarterly control of prohibited goods,and implements the Safe Delivery Special Program to prohibit the inflow of prohibited goods into the ZTO delivery network,such as drugs,firearms and explosives,reactionary propaganda products,dangerous chemicals,infringing and counterfeit good

225、s,counterfeit and substandard medicines,invasive species,counterfeit money,wild animals and plants.Prohibited Goods Graded and Quarterly Control to Ensure Delivery SafetyScreening from the source of customers,graded and segmented control after inflow,and implementation of accountability at all level

226、sSafe DeliveryEmpowering business through technology,transforming from offline to online,developing many system functions in collaboration with the Technology and Information Centre,realizing process visualization through further standardization of processes,achieving review of results,improving wor

227、k efficiency and realizing closed-loop workflow managementEnhancement ofoutlet experienceEnsuring the safety of parcel pickup and increasing pickup volume through professional market visits,low-risk cargo filing,and customized solutionsBusinessAssistance1)Control of high-risk prohibited goods during

228、 the hot season(May-October):Strictly control illegal pickup and delivery of flammable and explosive high-risk prohibited goods during the hot season,and strengthen the control of large-scale lithium batteries,accumulators,second-hand batteries and other battery products2)Control of fireworks and fi

229、recrackers(November-January):Strengthen the control of fireworks and firecrackers express,focusing on the investigation and handling of illegal pickup and delivery of fireworks and firecrackers1)0 major accidents caused by prohibited goods2)No incidents notified by the Administration for pickup and

230、delivery of prohibited goodsQuarterly ControlEffectiveness3837Linking the World Uniting All,Reaching BeyondZTO E2023 ESG ReportInitiatives to improve service qualityZTO Express is committed to building a complete,comprehensive and scientific customer experience monitoring capability,continu-ously op

231、timizing our service model through service intelligence and efficiency.We focus on improving customers logistics experience,accurately and efficiently meeting diversified demands of customers,and continuously improving customer experience.Optimization of Management InitiativesZTO Express has establi

232、shed an efficient customer service system and created a multi-channel feedback mechanism.In 2023,ZTO Express continued to expand customer feedback channels and collect customer demands.We currently have multiple feedback channels such as the 95311 official channel,online robot,and the official apple

233、t,and has upgraded some of the feedback channels to facilitate customer feedback and problem solving by means of three-party group chats,eco-interoperability,directional push comments,processing process optimization,and exception control.At the same time,the Company relied on service quality evaluat

234、ion system indicators to reduce the impact of service anomalies.In 2023,the all-channel connection rate of ZTO Express was 96.07%,an increase of 2.56%compared with 2022,and the complaints per 10 thousand orders was 1.99,a decrease of 2.45%compared with 2022.ZTO Express actively understands customers

235、 expectations and evaluations in terms of service,and continuously improves service quality and meets customers needs through customer feedback and analysis of satisfaction survey results.Customer FeedbackThe Company always attaches importance to stabilizing and developing the relationship with cust

236、omers,strictly abided by the Law of the Peoples Republic of China on the Protection of Consumers Rights and Interests.We adhere to the service concept of all for outlets,all for customers,constantly improve the customer service mechanism,upgrade the quality of service,and contin-ue to make efforts i

237、n pursuing the excellence in the quality of service.High-quality ServiceThe percentage of customers using online services/platforms out of the total customer basePercentage of total revenue generated from online channels out of the total revenueOnline Strategy and Online Customers202120222023%9290.3

238、9492.192.495/90.8919492Customer SatisfactionCustomer Satisfaction(in the last four years)Customer satisfaction coverage in 2023Customer satisfaction target in 20232020202120222023Data logic:internal research samples were taken to cover the data of each region in China for calculation96%For non-third

239、-party inbound parcels handled by couriers,the Company provides location-based photo signing functionality,promotes C-end and platform applications,uploads the photos of signed receipts for customers to view,and connect the platform to the application.This makes it easy for customers to look for the

240、 parcels,and reduces the proportion of the complaints caused by the problem of not knowing where the parcels areInterconnection of customer channelsEffectively integrating customer service resources of the whole network,connecting the three nets of outlets,provinces and districts,and headquarters;re

241、alizing the intelligent routing of telephone and online services;pursuing digital synergy,and reducing the waiting time of customers.We make use of this network for multi-channel interoper-ability to enable continuous iterative integration;work to achieve a closed loop and cycle based on the public

242、and private domains;enable continuous innovation and development,transforming standardized,normalized,and process-oriented services into systematic,customized,and caring-oriented servicesCreate a quality newsletter for couriersFocusing on improving the quality of couriers pick-up and delivery servic

243、e,the joint technical team builds a newsletter on the quality of parcel pickup and delivery.This newsletter will be pushed to couriers on a daily basis to provide data analyses,highlight on types of impacts,and to provide them with the corresponding guiding suggestions to improve their servicesClose

244、d-loop order exception reportingIntelligent system for closed-loop monitoring of the cancellation of customer orders by couriers and outletsIntegrated service quality monitoring visitsBased on data from visits to outlets and online feedback,make rectifications according to the business optimization

245、suggestions from internal customers under the coordination of outlet research and business linkageImplement location-based photo signingVisualized parcel delivery using Zhangzhongtong improves the delivery efficiency of couriers,and helps them to accurately deliver parcels and improve the service le

246、velEstablish an anomaly information sharing and management platformConstruct data capture rules for parcel stalling and push the upstream to provide stalling reasons,which are used to meet the data application of stalling scenarios of different dimensions,and ultimately achieve the purpose of inform

247、ation sharing and efficient communicationEnhance quality of delivery by couriers4039Linking the World Uniting All,Reaching BeyondZTO E2023 ESG ReportTools for improving service qualityWe formally promoted over 6000 assessment outlets,99 centers,and 34 manage-ment area lines.Managers can intuitively

248、view the performance results of corresponding service quality within the analysis system,as well as the processes and root cause factors,direct and indirect influencing factors,and provide rectifica-tion recommendationsHolographic QualityAnalysis SystemFrontline staff receive multi-dimensional guida

249、nce and empowerment in the department such as business skills,policies and rules,management skills.The head office and provincial districts and outlets are highly synergistic and cooperate to comprehensively cover the needs of frontline employeesCourier LearningPlatformWe sorted necessary service co

250、urses for the last-mile delivery service,which mainly included How to maintain service quality Best practices in the last-mile cooper-ation mode Common complaints and feedback How to maintain good service etiquette and Handling of work ordersLast-mile DeliveryService Learning PlatformCustomer Servic

251、e at 89%,up by 8.89%compared with 2022Couriers at 93.49,up by 3.32%compared with 2022“The Fast PassDaily QuizThe Company provides customer service training to enhance the overall customer service handling capacity and promote the development of frontline personnel,integrate frontline customer servic

252、e personnel across the network to collectively improve the service experience of ZTO Express.During the reporting period,the Company carried out a series of empowerment training activities,such as regulation training,early warning outlet training,induction training,on-the-job training(mentality,skil

253、ls,business,management,communication),with a total of 178 sessions and 3,510 trainees.In addition,the Company insists on innovational drive and continue to improve customer service level by building empowerment tools for employees and couriers.Empowering by Customer Service TrainingZTO Express conti

254、nues to improve our mechanism for information security management mechanism.During the reporting period,ZTO Express Information Security Committee was established to take charge of the overall information security and privacy protection work of the Company,with Executive Vice President Zhu Jingxi se

255、rving as the director of the Committee.Members of the Committee included Group Vice Presidents,heads of ecosystem companies,heads of functional centers at the headquarters,and heads of provincial and municipal control centers.The Company sets targets for information security and privacy protection m

256、anagement annually and reviews the progress regularly.Our privacy policy also applies to our partners.We also integrated the privacy policy into the risk management process,and conducted internal and external audits of privacy policy compliance.Information Security Management MechanismZTO Express st

257、rictly abide by the Data Security Law of the Peoples Republic of China,the Network Security Law of the Peoples Republic of China,the Personal Information Protection Law of the Peoples Republic of China,the Regulations on the Security Protection of Critical Information Infrastructure and other releva

258、nt laws and regulations of the country and the industry.We developed systems such as the Data Security Management System of ZTO Express Group,and the Measures of ZTO Express Group for the Management of Information Security Incidents to consolidate and improve our information security management syst

259、em,and safeguard the security of information data and privacy.Guaranteeing Information and Data SecurityTargets in 2023Progress in 2023Updated the Measures for the Administration of Personal Information Protection and the Measures for Security Impact Assessment of Personal InformationRealized 100%co

260、verage of privacy waybill in our own channels,and the utilization rate of privacy waybill in the whole network reached 76%Updated the ZTO Account and Privilege Management Measures to strengthen account securityStrengthening the personal information protection systemClearly informed customers of thei

261、r privacy rights in the ZTO Express Privacy PolicyProvided options for customers to cancel their accounts,update their informa-tion,and delete it,and specified how long the information will be stored and how it will be protectedEnhancing transparency in customer privacy protectionLaunched full traff

262、ic detection system and Baohe security agent to improve office network securityImplemented a pooled processing security logging and alerting system to improve emergency response to security incidentsStrengthening information security infrastructure and monitoringMaintained and updated the security o

263、perations management platform to ensure effectiveness and adaptabilityConducted periodic information security risk assessments to provide timely alerts and response to security risksOptimizing information security risk monitoring and management processes4241Linking the World Uniting All,Reaching Bey

264、ondZTO E2023 ESG ReportThe Company constantly improves risk control processes in the management and operation processes.We enhance the quality and efficiency of overall information security management through system structure optimization,technology upgrade and process improvement.Relying on the sec

265、urity operation and management platform,the Company carries out real-time monitor-ing and analysis of the information system infrastructure,application programs,network environment and employees operation behaviors.We also utilize technical means such as intrusion detection system,security event man

266、agement system and log analysis system to carry out real-time monitoring and analysis of the information system,and timely detects and warns of possible security risks,and take different countermeasures according to different levels of security events.Meanwhile,the Company regularly reviews and upda

267、tes the monitoring and risk control system to ensure its effectiveness and applicability of the system.To further improve the information security risk prevention and control capability,the Company organizes at least one red and blue confrontation drill every year,which is a simulated hacker attack

268、in cooperation with a third-party professional security company.In addition,our Security Emergency Response Center cooperates with third-party security companies and ethical hackers to simulate hacker attacks on ZTO systems from time to time to improve our ability of defending against cyber-attacks.

269、Moreover,we have set up public contact information and mailboxes for employees and the public to report any information securi-ty incidents.In the event of information security and privacy leakage incidents,we will penalize the employees involved in accordance with the relevant system.Depending on t

270、he severity of the circumstances,the employees involved will be given warnings,notified and criticized,demoted and suspended without remuneration,or dismissed from the Company.Measures for Information Security and Privacy ProtectionCarried out external monitoring,security warning cycles,intelligence

271、 sharing with external companies,vulnerability intelligence collection,public opinion monitoring,identification of social issues,dark web monitoring and other measuresIntercepted high-risk logins or two-factor authentication based on factors such as events,environment,frequency to ensure query secur

272、ity.Log each query and conduct regular log audits to track and deal with identified problemsCompleted activation of the full traffic detection system in the office network,strengthen-ing the attack and intrusion detection capabilities of the office networkCompleted centralized processing of alarm ag

273、gregation and detection for ZFE,Nginx,Waf,etc.,improving emergency response capabilities for security incidentsRiskmonitoringDeveloped a privacy vulnerability assessment and scoring system to collect privacy issues and make rectificationsCarried out security vulnerability assessment;completed emerge

274、ncy repair of vulnerabili-ties and achieved closed-loop processingVulnerabilityassessmentDeveloped Security Incident Management Measures to standardize the processes of incident grading,corresponding measures and reviewDeveloped a main emergency response process and regularly carried out emergency r

275、esponse to incidents in the aspects of command support and incident handlingHandling andrespondingto securityincidentsPersonnelverificationCouriers need to conduct personnel registration before registering an account.The account requires identity authentication and can access customer information on

276、ly after completion of registrationSystemspecificationsEstablished a unified personnel and delivery system No export function provided for customer information;identity information is hiddenThe Company formulated management processes such as the Emergency Response Plan in Information Security Incide

277、nt,Emergency Response Plan in Information Leakage Incident(Privacy Incident Exercise Plan)and Information Security Incident and Vulnerability Reporting and Disposal System.We conduct tests of the emergency response plan and incident response procedures at least every six months to ensure that emerge

278、ncy response and disposal work is carried out in a prompt,efficient and orderly manner to minimize cybersecurity risks.In addition,the Company have formulated a series of data privacy and security policies to provide a guiding basis for privacy protection.Timely notify data subjects in the event of

279、policy changes or data breach Implement leading data protection standards Obtain user data in a lawful and transparent manner,with the explicit consent of the data subject where necessary Limit the collection and processing of user data to the stated purposes only Policy contains explicit terms cove

280、ring the collection,use,sharing and retention of user data(including data transferred to third parties)Require third parties with whom data is shared to comply with company policies Company Data Privacy and Security Policy apply to all businessesKey Commitments in Data Privacy and Security Policy 44

281、43Linking the World Uniting All,Reaching BeyondZTO E2023 ESG ReportZTO Express have established an information security training system to regularly conduct information security education,training and examinations throughout the Company and the entire ecosystem to help employees expand their knowled

282、ge of information security and enhance their security awareness.In 2023,we updated our Information Security Training System and linked the results of the training examinations to performance appraisals,ensuring that all employees participate in the annual information security training.Information an

283、d Privacy Security TrainingTraining ActivitiesScopeOutcomesStaff from Technology and Information Center 35 minutes of training time per capita Information Security Awareness TrainingStaff across the entire network&ecosystemtCumulative number of partici-pants:22,830Information Security Enhancement Mo

284、nth Special ActivitiestStaff across the entire network&ecosystemCumulative number of trainees:10,383Special Phishing TrainingtAll staff in the CompanyPublished 22 posts throughout the year,with over 700,000 viewsInformation Security Promotion Column in the service account of ZTO Information Security

285、 Department All staff in the CompanyRead 12w+timesService account of ZTO Information Security Department pushes content about information security awareness,privacy security protection,etc.Effectiveness of Information Security and Privacy Protection in 2023The Companys core business systems for desi

286、gn and development,application systems,IT infrastructure,operation and maintenance services have passed ISO 27001,ISO 27701,GB/T 22080 information security system certification and ISO 9001 quality management system certification.They have been awarded the United Kingdom Accreditation Service(UKAS)a

287、nd China National Accreditation Service for Conformity Assessment(CNAS)marks of recognition.We conduct an internal audit of the operation of the information security and privacy management system once a year,and hire a third-party certification and auditing organization to conduct an external audit

288、annually.The Company experienced no information security breaches or other cybersecurity incidents,with a total of zero information security breaches and zero customers,clients and employees affected by the breaches 100%of customers informed of privacy policy 100%of data control services(including p

289、ersonal data access,correction,deletion,etc.)provided by customers 100%coverage of policy which only allows use of personal data upon customers consent 4645Linking the World Uniting All,Reaching BeyondZTO E2023 ESG Report中通快递上海某某网点ZTO Express strives to leverage its scale advantages and coordinate v

290、arious links upstream and downstream to achieve comple-mentary advantages,continuously empowering partners,and jointly promoting the construction of a sustainable value chain in the express delivery industry.Creating a Chain of ResponsibilityZTO Express adheres to the principle of sustainable and he

291、althy development at the last-mile,continues to expand the number and scale of end markets,as well as constantly improves service levels and standardization construction.We proactively assist outlets in accelerating the adjustment and optimization of operational management models,increasing direct l

292、inkage to the last mile to reduce costs,and working hand in hand with partners for mutual success.Outlets Support and DevelopmentLast-milepostsdevelopmentEnhancingoutletmanagementcapabilitiesCoveringevery cornerDelivery Efficiency:Encourage outlets to effectively strengthen post station management,i

293、mprove delivery efficiency,and optimize direct delivery costsPost Station Services:Improve service quality meeting individualized needs,expanding market share of express delivery products,accelerating end-point construction to strengthen post services,and deepening and empowering outlet capabilities

294、Terminal Management:Establish data visualization management for delivery map services,further reducing operating costs through information management tools,promoting quality upgrades in the last-mile,and providing better services to customers and consumersStation Construction:Further optimize the pr

295、oducts and services of existing outlets,constant-ly exploring new models for post development,utilizing our own advantages and existing resources to meet consumer demands,improve service capabilities,and ensure healthy and sustainable development of end-pointsImplement monitoring of business develop

296、ment,service quality,and other data at the level of three-segment codes,enable outlets to quickly identify service personnel corresponding to abnormal three-segment codes,provide more targeted improvement suggestions,and enhancing efficiency and service levels in parcel handling and deliveryProvide

297、outlets with an intensive tool,the Violation Handling System,which integrates violation data scattered across various systems and conducts detailed analysis.Functional departments and outlets themselves can use the System to identify issues and uncover potential operational risks at outlets.By provi

298、ding data tools to outlets,their work is elevated to a new stage of intelligence and efficiencyMaintain the stability of outlets,ensure stable service and enhance customer experience,ignite the intrinsic motivation of couriers,accelerate the realization of direct chain management under the franchise

299、 model,better support the development of outlet terminals and the upgrading of outlet operating models,and boost the enthusiasm,stability,and income of outlet personnelZTO Express regularly conducts training empowerment activities to standardize the compliance operations of outlet,improve the capabi

300、lities and qualities of outlet-related personnel,and ensure the efficiency of outlet management and service.In 2023,ZTO Express started the Blue Bee Index project and developed the Blue Bee Index points system.It displays various data of couriers from the four major categories of timeliness,service,

301、compliance,and safety,implementing supervision over the compliance of operations at various stages for front-line couriers.This helps and motivates couriers to improve their service capabilities and service quality.By the end of the reporting period,more than 2,700 couriers nationwide have successfu

302、lly rectified,with a success rate of 56.20%for index rectification.The training for couriers primarily utilizes online training video courses.The curriculum comprises nine modules,covering safety awareness,parcel pickup,delivery,recipient acknowledgment,BlueBee guarantee,and other aspects.These modu

303、les encompass safety situations in the daily work of couriers,methods for handling emergencies,comprehensive training in parcel handling skills,and knowledge of policies ensuring the rights and interests of couriers.By the end of 2023,the overall learning completion rate has exceeded 92%Promoting Es

304、sential Courses for New CouriersAn online system has been developed to control training permissions for newly hired couriers across the network.This measure aims to further improve service quality,standardize parcel handling operations,and enhance customer experienceControl of Training Permissions f

305、or Newly Hired Couriers4847Linking the World Uniting All,Reaching BeyondZTO E2023 ESG ReportZTO Express seeks to improve its supplier management mechanism,establish a supplier information management system,and enhance suppliers technical support and innovation capabilities.During the reporting perio

306、d,the Company enhanced the Huihua Procurement System,realizing digital procurement,further improving the efficiency of supply chain management.ZTO Express adheres to the concept of win-win cooperation and continuously expands channels for communication and coopera-tion with suppliers.We share excell

307、ent ESG practices with suppliers and regularly conduct training on business ethics,quality improvement,and safety production to enhance their comprehensive capabilities.In 2023,the Company conducted a two-hour training session on supplier ESG-related topics.Supplier TrainingKey Performance Indicator

308、s2023(Suppliers)7,3947,332621,63232712Total number of suppliersMainland ChinaOverseas regionsNumber of newly hired suppliersTotal number of Tier 1 suppliersTotal number of Tier 1 critical suppliersZTO Express strictly adheres to relevant national laws and regulations,formulating such systems as the

309、Supplier Dynamic Manage-ment System,Procurement Management System and Detailed Rules for Implementation,and the Transit Equipment Tendering and Bidding Management Measures to outline the entire lifecycle management process for supplier introduction,evaluation,and exit.To enhance the ESG management c

310、apabilities of suppliers,the Company has established Supplier Guiding Principles which is applicable to all suppliers and clearly define requirements for suppliers in terms of human rights,environment and business ethics,the responsibilities of supervision and decision-making for such lie with the C

311、ompanys top management.Additionally,the Company provides ESG promotion and training for procurement and other supplier management personnel,and integrates elements such as quality management,business ethics,labor rights,and green environmental protection into supplier admission and evaluation proces

312、ses.Supplier ESG ManagementZTO Express actively seeks sustainable development paths for the express delivery industry,integrating environmental and social responsibilities into various aspects of supply chain management.Through partner empowerment and collaborative communica-tion,we drive the entire

313、 upstream and downstream of the industry chain to achieve sustainable transformation.Enhancing Supplier ESG ManagementSupplier Management ProcessWithdrawalAll Suppliers undergo continuous review to ensure alignment with the Supplier Guiding Principles and avoid potential conflicts with ESG requireme

314、nts.If a supplier engages in behaviors that violate the established policies,they are immediately categorized as ineligible and are removed from the database of qualified supplierAdmittanceThe business department,legal department,and procurement department review admission applications of suppliers

315、based on their respective responsibilities.They consider environmental protection policies,social responsibility performance,and other ESG factors as bonus criteriaContracts include clauses related to business ethics,occupational health and safety,child labor,forced labor,employee rights,environment

316、al protection,etc.Specific measures for handling violations are outlined to mitigate supplier management risksWhen selecting important suppliers,the Company not only considers their business relevance,such as product quality and services,certification qualifications,but also evaluates their environm

317、ental management performance,occupational health and safety,employee rights,business ethics and compliance,and other environmental,social,and governance(ESG)aspects.The Company also pays attention to specific risks related to the suppliers industry and commodities,enhancing supply chain management r

318、esilienceEvaluationA combination of daily project management and regular annual assessments is utilized.Procurement personnel conduct desk evaluations,questionnaire surveys,or on-site assessments of suppliers based on requirements such as the Supplier Guiding Principles.The content includes child la

319、bor,business ethics,environmental management,maximum working hours,minimum living wage,corporal punishment,and harassment.Suppliers are classified and managed according to their evaluation results.Corrective action plans are developed for issues identified during assessments,and guidance is provided

320、 for implementing improvement measures.When it comes to comprehensive capacity building and specific ESG management performance improvement for suppliers,the company provides in-depth technical support and training to enhance their capabilities and ESG performanceIf a supplier fails to meet the Comp

321、anys minimum ESG requirements within a specified time frame,cooperation is terminatedDimensions ofsupplier ESG management focusEnvironmentSocietyManagementTaking a serious stance against supply chain corruption,requiring procurement staff to sign a commitment to integrity,and using contracts signed

322、by suppliers to bind both parties to compliance issues,thereby preventing unfair competition practicesA comprehensive quality management system certified by ISO 9000 quality management systemImprove the Green Procurement System Policy,establish a corporate green procurement standard working system,c

323、larify the green procurement process,specify green procurement requirements for products,office supplies,etc.,and collaborate with suppliers to improve their environmental performance.Select suppliers with the Green Product Certification for Express Packaging certificate5049Linking the World Uniting

324、 All,Reaching BeyondZTO E2023 ESG ReportZTO Express showed active participation in standard reviews and feedback,assumed a leading role in exchange activities to facilitate and empower healthy development of the express logistics industry.In 2023,the Company participated in the formula-tion of one i

325、ndustry standard and the review of nine standards.Contributing to the Developmentof the IndustryIn cooperation with the meteorological department of Zhejiang Province and the Public Service Center of the China Meteorological Administration,ZTO Express explored the development of standards in the fie

326、ld of commerce and logistics meteorological services in the Belt and Road.The Company provided data on how weather impacted express delivery and other information for decision-making,organized a questionnaire survey group,and worked with the relevant departments to complete the development of the in

327、dustry standard High Impact Weather Types and Risk Levels for Highway Logistics.Industry Standards ZTO Co-developedZTO Express actively explores cutting-edge applications,collaborates with relevant enterprises and research institutions,leverages their respective strengths to achieve resource sharing

328、,complementary advantages and coordinated development.We accelerate the commercialization of cutting-edge technological achievements,create demonstration projects for emerging industry applica-tions to empower development of the express delivery industry.Autonomous driving vehicles can not only sign

329、ificantly improve logistics efficiency and safety,reduce logistics delivery costs,but also achieve more flexible and convenient delivery services to promote transition to smart logistics.ZTO Express has signed a strategic cooperation agreement with NEOLIX,to jointly promote large-scale application o

330、f autonomous driving technology in the delivery field.As of the end of the reporting period,the first batch of autonomous driving vehicles had commenced operation in cities such as Yancheng and Hefei on a regular basis through the cooperation between the two parties.Next off,we seek to further expan

331、d the scale of autonomous driving vehicle deliveries and the cities where they are deployed.Promoting Large-scale Application of Autonomous Driving Vehicles in the Delivery FieldZTO Express reached a strategic cooperation with Nanjing University of Aeronautics and Astronautics,Urban Air Traffic Rese

332、arch Institute that focuses on the emerging industry of drone logistics.Centering around key issues and core technologies in drone logistics,the cooperation features scientific project application and joint research and conduct demonstration applications of drone logistics to promote the application

333、 and rapid development of the emerging industry of drone logistics.Regarding the use of large unmanned transport aircrafts,we have signed a strategic cooperation agreement with Yitong UAV System to jointly explore large-scale commercial operation of such aircrafts based on the application scenarios of the Company.Focusing on the Drone Industry to Boost Rapid Development of Drone Logistics5251Linki

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