Annual Report 2023

Management Discussion and Analysis CHINA MERCHANTS PORT HOLDINGS COMPANY LIMITED 26 SUSTAINABLE DEVELOPMENT Upholding the concept of sustainable development, the Group actively undertook the corporate responsibilities towards stakeholders such as shareholders, employees, society and the environment, strengthened corporate compliance management and operation, and fully integrated the concept of sustainable development into operation management and investment in order to promote sustainable development in a professional, standardized and transparent manner. With the goal of innovative development, green and low- carbon, safe and reliable, and humanistic care, the Group continued to improve the ESG strategy and management policy, promoted the implementation and application of the ESG closed-loop management system, enhanced the internal ESG management level, and strengthened the external ESG information disclosure, in order to show all stakeholders its determination to facilitate sustainable development strategies, and continuously promote the construction of a world leading green and smart port. The Group supported energy security and low-carbon transformation. With the goal of building a green ecological port enterprise, the Group strictly complied with relevant laws and regulations on environmental protection, implemented the main responsibility of energy conservation and environmental protection, established the sound incentive and restraint mechanism for energy conservation and environmental protection, strengthened the management of energy conservation and emission reduction in construction, production and operation at doemestic and abroad, explored green transportation services and investment opportunities, and continuously reduced the impact and dependence of business operations on the environment and natural resources. In order to achieve the development goal of “energy conservation and efficiency enhancement”, the Group continued to expand the application scope of new energy-saving technologies and products, gave priority to the use of environmentally friendly and efficient equipment, gradually increased the proportion of renewable energy applications, and implemented the strategic plan of energy conservation and environmental protection. Some terminals were awarded the 4-star “China Green Port”, honoring their green and low-carbon development feature. The Group attached great importance to the protection of biodiversity and was committed to minimizing the impact of port operations on the ecosystem of the project location and its surrounding areas, utilizing land resources and protecting natural habitats on a rational manner. The Group adopted avoidance, mitigation, compensation and protection measures to control the disturbance caused by operational activities to neighboring communities and marine ecology. In overseas, TCP implemented various environmental and social regular monitoring programs. HIPG continued to promote the “Human-Elephant Co-existence” project and cooperated with the Department of Wildlife Conservation in Sri Lanka on the elephant conservation of “Save Little Elephant”. LCT was committed to monitoring and protecting the sea turtle on the coast of Togo and has carried out a number of training activities. Zhangzhou terminals in China regularly tested the air quality and noise operations in the port area, so as to reduce or even eliminate the disturbance of business to the ecological environment in the long run and realize the beautiful vision of harmonious coexistence between the port and nature. Adhering to the concept of “Safety and prevention as Priorities with Comprehensive Governance”, the Group strictly abided by the laws, regulations and management measures related to health and safety management in the places where it operated, and continuously improved the safety management system. The Group continued to learn, develop and adopt advanced occupational health and safety management practices including technological means to provide a safe workplace for employees, contractors, customers, port visitors and other stakeholders.