China Communications Construction: Trending Favorably on ESG Progress

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China Communications Construction Company is mainly engaged in the infrastructure construction business. Other businesses include real estate development and fund investment. 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 Resource Use Score front, but underperforming on the Environmental Innovation 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 Environmental Supply Chain Policy, the setup of an Environment Management Team, Environment Management Training, and Environmental Materials Sourcing.


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 presence 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 4,605,000 in the latest fiscal year, which compares to 4,744,000 in the prior year and 5,413,000 in the year before based on a Reported CO2 numbers.


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 not implemented as well. This compares to the lack of a similar policy in the prior year.


The company has produced an increase in Net Employment Creation. The number of employees from CSR reporting totals 135,813, relative to 116,893 in the prior year and 118,765 in the year before.


As of the latest fiscal year, there have 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 favorably, particularly outperforming on the Management Score front, but underperforming on the Shareholders Score front.


The company does not have a Corporate Governance Board Committee but has 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 15 meetings in the last fiscal year, which compares to 14 in the prior year. The Board size currently stands at eight members based on the latest annual/ESG report. The Board has an average tenure of 3.85 years, which compares to 4.0 in the prior year.


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


The company has not implemented CEO-Chairman Separation and does not have its CEO as a Board member. Its chairman is not 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 also not linked to long-term objectives. Sustainability compensation incentives have not been implemented. Thus far, there have not been any executive compensation controversies.


Sources:


http://en.ccccltd.cn/corporateculture/socialresponsibilityrepc/


https://www.csrhub.com/CSR_and_sustainability_information/China-Communications-Construction-Co-Ltd

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