China Industrial Securities: Latest Report Reveals Favorable ESG Progress

4.88
33 ratings

China Industrial Securities is principally engaged in the security brokerage, Investment Banking, Asset Management, and proprietary investments. The Overseas segment mainly covers businesses in Hong Kong. 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 Environmental Innovation Score front.


For instance, it has implemented a resource reduction policy, which compares to the lack 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, Environment Management Training, Environmental Materials Sourcing, and Toxic Chemicals Reduction.


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 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 6,836 in the latest fiscal year, which compares to 4,941 in the prior year and 4,097 in the year before based on a Reported CO2 Estimation Method.


Social


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


For instance, it has not implemented a health and safety policy, which compares to the lack 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 7,214, relative to 5,769 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 favorably, particularly outperforming on the Shareholders Score front, but underperforming on the Management Score front.


The company does not have a Corporate Governance Board Committee, does not have a Nomination Board Committee, but has an Audit Board Committee. It also does not have a Compensation Board Committee. The company does have a Board Structure Policy and does have a Policy fo Board Independence in place. The Board has held 11 meetings in the last fiscal year, which compares to 10 in the prior year. The Board size currently stands at 9 members based on the latest annual/ESG report.


The Board has an average tenure of 3.7 years, which compares to 2.7 in the prior year. Board diversity lacks both cultural and gender diversity.


The company has not implemented a Policy for Executive Compensation Performance and has not tied Executive Compensation to ESG Performance. The company has not implemented a Policy Executive Retention, and 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 has risen 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.xyzq.com.hk/html/about_csr


https://www.xyzq.com.hk/html/ir_board


https://www.xyzq.com.hk/html/ir_report

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