China Aoyuan Group: ESG Policies Trending Positively

4.77
35 ratings

China Aoyuan Group Limited (formerly China Aoyuan Property Group Limited) is principally engaged in Property Development, Property Investment, and other businesses such as hotel operation, along with the provision of consulting and management services. An analysis of the company's environmental, social, and governance policies are as follows:


Environment


From an environmental perspective, the company scores reasonably, 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 the company is currently lacking include Resource Reduction Targets, Water Efficiency Targets, Energy Efficiency Targets, the setup of an Environment Management Team, and Toxic Chemicals Reduction. Areas the company has addressed include Environmental Supply Chain Policy, Environment Management Training, and Environmental Materials Sourcing.


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 4,148 in the latest fiscal year, which compares to 3,306 in the prior year based on Reported CO2 Estimates.


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 rise in Net Employment Creation, with the number of employees from CSR reporting totaling 16,504.


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 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, has an Audit Board Committee, and has a Compensation Board Committee. The company does have a Board Structure Policy and does have a Policy for Board Independence in place. The Board has held eight meetings in the last fiscal year, which compares to 15 in the prior year. The Board size currently stands at seven members based on the latest annual/ESG report.


The Board has an average tenure of 6.25 years, which compares to 6.35 in the prior year. The Board lacks both cultural and gender diversity.


The company has implemented a Policy for Executive Compensation Performance but has not linked Executive Compensation to ESG Performance. The company has implemented a Policy for Executive Retention and has implemented a Succession Plan, along with an External Consultant policy.


The company has implemented CEO-Chairman Separation and does have its CEO as a Board member. Its chairman is an ex-CEO. Board member term duration stands at one year. 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://www.csrhub.com/CSR_and_sustainability_information/China-Aoyuan-Property-Group-Limited


https://en.aoyuan.com.cn/e/about/report.aspx?strm=126013001

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