BOE Technology Group: Trending Favorably on ESG Progress

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28 ratings

BOE Technology Group is a leading display products and components manufacturer in China. An analysis of the company's environmental, social, and governance policies are as follows:


Environment


From an environmental perspective, the company scores favorably, particularly outperforming on the Environmental Innovation Score front, but underperforming on the Emissions Score front.


For instance, it has implemented a resource reduction policy, which compares to the presence of a clear policy in the prior year. The company has implemented a water efficiency policy, with an energy efficiency policy implemented as well. This compares to the presence of a similar policy in the prior year.


Environmental policy areas where the company is currently lacking include Resource Reduction Targets, while areas the company has addressed include Policy Environmental Supply Chain, Environment Management Team, Environment Management Training, Environmental Materials Sourcing, and Toxic Chemicals Reduction.


The company has also implemented renewable energy use, which compares to the presence of a clear policy in the prior year. The company has also notably implemented green buildings as well, which compares to the lack of a defined policy in this regard in the prior year.


In terms of its carbon footprint, the company's Estimated CO2 Equivalents Emission Total stands at 3,367,042 in the latest fiscal year based on CO2 Estimates.


Social


From a social standpoint, the company scores favorably, particularly outperforming on the Workforce Score front, but underperforming on the Human Rights Score front.


For instance, it has implemented a health and safety policy, which compares to the presence of a clear policy in the prior year. The company has also implemented an Employee Health & Safety Policy, with a Supply Chain Health & Safety Policy implemented as well. This compares to the presence of a similar policy in the prior year.


The company has produced a rise in Net Employment Creation, with the number of employees from CSR reporting totaling 68,175, relative to 62,516 in the prior year.


As of the latest fiscal year, there have not been Management Departures, while the prior year saw no departures. Meanwhile, the company experienced no strikes this year, which compares to no strikes in the prior year.


Governance


From a governance standpoint, the company scores reasonably, outperforming on the Shareholders Score front, but underperforming on the Management Score front.


The company does not have a Corporate Governance Board Committee, a Nomination Board Committee, an Audit Board Committee, and a Compensation Board Committee. The company does have a Board Structure Policy and does have a Policy Board Independence in place. The Board has held 12 meetings in the last fiscal year, which compares to 13 in the prior year. The Board size currently stands at 13 members based on the latest annual/ESG report.


The Board has an average tenure of 2.975 years, which compares to 4.8 in the prior year. The Board diversity lacks cultural diversity but as a % of members, stands at 7.7% for gender diversity.


The company has implemented a Policy Executive Compensation Performance and has not implemented a Policy Executive Compensation ESG Performance. The company has implemented an Executive Retention Policy, and a Succession Plan, but has not implemented an External Consultants policy.


The company has implemented CEO-Chairman Separation and does have its CEO as a Board member. Its chairman is an ex-CEO. Board member term duration stands at three years. In total, senior executives' compensation rose in the latest fiscal year. Notably, the CEO compensation is not linked to total shareholder return. Meanwhile, executive compensation is not linked to long-term objectives. Sustainability compensation incentives have not been implemented. There have not been any executive compensation controversies thus far.


Sources:


https://www.boe.com/en/about/shzr/


https://www.csrhub.com/CSR_and_sustainability_information/BOE-Technology-Group-Co-Ltd-B-HKD


https://database.globalreporting.org/organizations/3738/

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