China Unicom: Trending Favorably on ESG Progress

4.92
25 ratings

China United Network Communications is a Chinese telecommunication company with businesses in Mobile Communication and Fixed Network. The company operates in the domestic markets. 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 Emissions Score front, but underperforming on the Resource Use 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, Environment Management Training, and Environmental Materials Sourcing.


The company has also implemented renewable energy use, which compares to the lack 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 13,200,000 in the latest fiscal year, which compares to 13,130,000 in the prior year and 5,190,000 in the year before based on Reported CO2 numbers.


Social


From a social standpoint, the company scores favorably, particularly outperforming on the Workforce Score front, but underperforming on the Community 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 a decline in Net Employment Creation. The number of employees from CSR reporting totals 243,790, relative to 260,964 in the prior year and 267,590 in the year before.


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, particularly outperforming on the CSR Strategy Score front, but underperforming on the Shareholders Score front.


The company does not have a Corporate Governance Board Committee and a Nomination Board Committee but has an Audit Board Committee and a Compensation Board Committee. The company does have a Board Structure Policy but does not have a Policy for Board Independence in place. The Board has held 7 meetings in the last fiscal year, which compares to 11 in the prior year. The Board size currently stands at 12 members based on the latest annual/ESG report.


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


The company has not formally implemented CEO-Chairman Separation but 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 not linked to long-term objectives. Sustainability compensation incentives have not been implemented. Thus far, there have not been any executive compensation controversies.


Sources:


https://www.csrhub.com/CSR_and_sustainability_information/China-United-Network-Communications-Ltd


https://www.chinaunicom.com.hk/en/ir/reports.php

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