Anhui Expressway: Latest Reporting Reveals Broad-Based ESG Underperformance

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Anhui Expressway Company Limited is a Chinese company mainly involved in the investment, construction, operation, and management of toll roads. The company operates the following expressways - Hening Expressway, Gaojie Expressway, Xuanguang Expressway, and LianHuo Expressway (Anhui Section), among others. An analysis of the company's environmental, social, and governance policies are as follows:


Environment


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


The company has also implemented renewable energy use, which compares to the presence 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 15,107 in the latest fiscal year based on Reported CO2 Estimates.


Social


From a social standpoint, the company scores unfavorably, outperforming on the Human Rights Score front, but underperforming on the Product Responsibility 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 notable decline in Net Employment Creation relative to the prior year. The Number of Employees from CSR reporting totals 2,147.


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, outperforming on the CSR Strategy 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 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 seven meetings in the last fiscal year. The Board size currently stands at nine members based on the latest annual/ESG report. The Board has an average tenure of 8.0 years but lacks both cultural and gender diversity.


The company has not implemented a Policy for Executive Compensation Performance and has not tied its Executive Compensation Policy to ESG Performance. The company has not implemented a Policy for Executive Retention, but has implemented a Succession Plan and 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 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:


http://www.csrhub.com/CSR_and_sustainability_information/Anhui-Expressway-Co-Ltd


http://www.anhui-expressway.net/en/report/?class_id=114102&year=180

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