Shanghai International Airport: Room for Improvement Across ESG Initiatives

4.77
26 ratings

Shanghai International Airport is a China-based company involved in the operation and management of airports and related services. The company operates Pudong International Airport in Shanghai, China. An analysis of the company's environmental, social, and governance policies are as follows:


Environment


From an environmental perspective, the company scores unfavorably, 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 not implemented a water efficiency policy, with an energy efficiency policy not implemented as well. This compares to the lack 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 Environment Management Team and Environment Management Training.


The company has also not implemented renewable energy use, which compares to the lack of a clear policy in the prior year. The company has also notably not 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 261,839 in the latest fiscal year, which compares to 278,411 in the prior year based on CO2 Estimates.


Social


From a social standpoint, the company scores unfavorably, 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 lack 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 12,163, relative to 11,642 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 unfavorably, 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 but has a Nomination Board Committee, 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 - meetings in the last fiscal year, which compares to 7 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 4.7 years, which compares to 6.6 in the prior year. The Board lacks both cultural and gender diversity.


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


The company has not implemented CEO-Chairman Separation and does 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:


https://www.csrhub.com/CSR_and_sustainability_information/Shanghai-International-Airport-CoLtd


https://www.shairport.com/en/jcjt/index_240682741.html

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