Nanjing Securities: Below-Par Progress on ESG Initiatives

4.80
35 ratings

Nanjing Securities Co., Ltd. is a securities company based in China. The company is mainly engaged in securities brokerage, investment banking, asset management, credit trading, and futures, along with other businesses. 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 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 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 the company is currently lacking include Environmental Supply Chain Policy, Resource Reduction Targets, Water Efficiency Targets, Energy Efficiency Targets, the setup of an Environment Management Team, Environmental Materials Sourcing, and Toxic Chemicals Reduction. Areas the company has addressed include 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 2,849 in the latest fiscal year based on a Median CO2 Estimation Method.


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 presence of a clear policy in the prior year. The company has also not 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 rise in Net Employment Creation. The Number of Employees from CSR reporting totals 1,868.


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 Shareholders Score front, but underperforming on the CSR Strategy 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 a Policy for Board Independence in place. The Board has held six meetings in the last fiscal year. The Board size currently stands at 15 members based on the latest annual/ESG report. Board diversity stands at 26.7% for gender diversity but lacks cultural diversity.


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 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 has risen in the latest fiscal year, along with Board member compensation. 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://vip.stock.finance.sina.com.cn/corp/go.php/vCB_Bulletin/stockid/601990/page_type/ndbg.phtml


https://vip.stock.finance.sina.com.cn/corp/go.php/vCB_Bulletin/stockid/601990/page_type/yjdbg.phtml

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