Annual Report 2020

China Merchants China Direct Investments Limited Annual Report 2020 80 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT (CONTINUED) SOCIAL RESPONSIBILITY (CONTINUED) Supply Chain Management (continued) Privacy and Data Protection We strictly uphold the relevant privacy laws and regulations as well as contractual obligations for the limited privacy data retained by having proper maintenance in a secure place and internal control. The data is only to be used for the purposes upon owners’ agreement and the data will be deleted whenever requested by the owners. When handling the privacy information, employees are instructed to exercise with due care. During the Reporting Period, there were no cases of non-compliance noted in relation to health and safety, advertising, labelling and privacy matters regarding services provided and methods of redress. We also did not receive any services-related written complaints with such practices adopted. Responsible Investment Responsible investment is upheld by the Board and the Investment Manager. It is believed that responsible investment practice is the key to bring long-term sustainable value to our investors and shareholders. Realised that sustainability is becoming an important consideration of investors’ strategic investment decisions with a clear sign that responsible investment is turning mainstream, we do take steps through considering environmental and social criteria when making investment decisions, and not engaging in financing activities which may violate any environmental or labour laws purposefully for profits. A due diligence process is in place when we examine our investment targets. It is important that they are not only performing exceptionally and having good development prospects, but are also fulfilling their ESG responsibility. ESG factors are taken into consideration when we are assessing the risks posed by our investment targets. For example, we would understand their ESG policies and consider if they had any significant ESG non-compliances in the past. Despite we have minimal control over the business and operation decisions of the investee companies, we still pay close attention to their ability to fulfil ESG responsibility. Whenever suitable, we will attend their general meetings to obtain a better understanding of their ESG policy and performance. When they fall short, we may raise questions in the meeting regarding their ESG performance. Besides, we request investee companies to disclose significant non- compliance ESG issues in a timely basis and monitor news outlet for any ESG non-conformity. Due Diligence Process The Company and the Investment Manager actively put quality assurance into practice. Comprehensive due diligence review, business prospects analysis and ESG risk assessments are conducted by the Investment Manager before taking investment targets into consideration and adding them to the Company’s portfolio. By doing so, it is believed that the investment quality is assured and values are brought to our investors and shareholders.