Practicing ESG, Shengye continues to promote sustainable development of supply chain technology

ESG is an acronym for Environment, Society and Governance. From the first time the ESG concept was proposed in 2004, to its inclusion in the investment decision-making process in 2006, to its gradual spread around the world, ESG has received more and more attention from companies.

As a leading supply chain technology platform, Shengye Holding Group Co., Ltd. (hereinafter referred to as "Shengye") has been constantly exploring how to fully integrate ESG concepts into strategic development, business operations and corporate culture, demonstrating corporate social responsibility in the fields of inclusive finance, information security, social welfare, employee care, etc., and responding to the dual carbon target strategy through innovative financial products and services, building a green supply chain, and promoting green operations.

"ESG has always been Shengye's DNA," said Wang Zheng, Shengye's company secretary. Last year, Shengye received an MSCI ESG rating of Class A in 2021, was selected into the Hang Seng Sustainability Corporate Benchmark Index, and its Hang Seng ESG Index rating was also upgraded to Class A.

On May 31, Shengye released the "2021 Environmental, Social and Governance Report" ("ESG Report"). The report comprehensively demonstrates Shengye's initiatives and achievements in environmental protection, social responsibility and corporate governance, and provides decision-making information with reference value for ESG investment in the market. From the report, it is not difficult to find the reasons why Shengye has achieved such impressive results in the field of ESG.

"Industrial Technology + Digital Finance" dual drive to help small and medium-sized enterprises develop

Under the concept of taking ESG as DNA, Shengye released the "dual drive + big platform" strategy in 2021. It also removed the labels of capital and finance at the external strategic level and business development direction, and strengthened the attributes of the ecology more. It hopes to create a large supply chain technology platform through the dual-driven development of "industrial technology + digital finance", and build services for the overall supply chain smart ecosystem to help small and medium-sized enterprises solve the problem of financing difficulties, while promoting digital upgrades and sustainable development of industries such as infrastructure, medicine and energy.

In the industrial technology sector, Shengye successfully won the bid for the Pengcheng Laboratory, a national research laboratory project, last year, helping large pharmaceutical commercial companies build a comprehensive intelligent supply chain service solution; in the digital finance sector, Shengye had served more than 10,000 customers by the end of last year, and had processed more than 130 billion yuan in supply chain assets, of which more than 99% were small, medium and micro enterprises. According to Wang Zheng, Shengye's total loans to small, medium and micro enterprises have reached 15.4 billion yuan, and the proportion of loans to small, medium and micro enterprises is as high as 97%. Shengye has saved an average of 90% of the supply chain financing processing time for small, medium and micro enterprises, with an average loan term of 3 months, efficiently solving the supply chain financing needs of small, medium and micro enterprises. Shengye is using technological and business innovations to provide strong support to small, medium and micro enterprises.

Put information security and privacy protection first

Shengye responds to the national and industry requirements for information security and continuously strengthens the information security barrier. So far, Shengye has invested RMB 100 million in scientific research, has 42 software copyrights, has built R&D centers in Wuxi and Shenzhen, and has a strong R&D team.

In the process of building a technology platform and achieving innovation, Shengye has placed information security and privacy protection in the first place. It is reported that 100% of Shengye's employees have received training in compliance, anti-corruption, information security, and network security. It is worth noting that Shengye had 0 data leaks during the reporting period and 0 customer complaints about privacy and security. In 2021, Shengye's Shengyitong Cloud Platform obtained the third-level certification of the National Information Security Level Protection Certification and the ISO/IEC 27001:2013 international information security certification issued by the authoritative organization CEPREI, marking another important step in system security construction and customer information protection.

Based on local laws, regulations and regulatory requirements, Shengye has formulated many internal policies, clearly informed and authorized customers, and fully embraced supervision. From the prevention of fraudulent emails to the security of customer information, Shengye's senior management has paid attention to them. Shengye has also established a professional information security team and created a comprehensive management information security system, including network security, system security, and some emergency management mechanisms.

After having a team, mechanism, and training, Shengye also conducted multiple attack and defense drills to verify the information security system. For the internal audit department, Shengye also has a complete process to continuously optimize the mechanism through review. In this way, Shengye has formed a complete closed-loop information security system that embraces supervision, management attention, team review mechanism support, drills and audits.

Empowering the value chain with technology

Since its inception, Shengye has independently developed the Shengyitong Cloud Platform, realizing a digitized, systematized, and intelligent supply chain technology model, solving problems such as offline document signing and mail express delivery that waste resources. Through the 100% online operation of the Shengyitong Cloud Platform, it has not only reduced energy consumption, but also reduced labor costs, and the time and links of supply chain financing processing have also been greatly reduced.

In terms of emission reduction in the value chain, Shengye has been actively developing sustainable digital finance and supply chain technology services. In terms of digital finance, Shengye has set sustainable standards for business access, such as setting up green access green channels for green buildings, park greening, public hospitals, urban pipe networks and other infrastructure, as well as new energy and new infrastructure projects. In addition, in the low-carbon transformation of the industry, Shengye assists infrastructure, medicine, energy and other industries in achieving full-process digitalization through green supply chain technology services such as smart construction sites, pharmaceutical SPD, and SaaS systems, reducing the carbon footprint and carbon emissions of the industry, and also helping to promote the transformation of the industry.

Actively participate in public welfare and be a responsible enterprise

As a responsible and accountable private enterprise, Shengye encourages employees to participate in public welfare activities, launches the "Shengye Light·Public Welfare Plan", and establishes the Shengye Charity Foundation. According to Wang Zheng, Shengye's charity foundation not only participates in public welfare activities such as poverty alleviation, but also focuses on combining Shengye's strategy and industrial development to help the development of industries such as infrastructure and medicine, as well as children in difficult situations. During the epidemic, with the support of the Shengye Charity Foundation, Shengye supported some suppliers of cabin hospitals. In the pharmaceutical industry, Shengye provided the corresponding supply chain financing to small and medium-sized enterprises in the pharmaceutical industry in a timely manner through online operations, ensuring the timely procurement and supply of epidemic prevention materials.

People-oriented, creating a diversified workplace environment

Shengye will take people-oriented as its core value and share the fruits of development. Shengye's workplace environment is diversified, with young employees, and more than 50% of employees are under 30 years old. Female employees also exceed 54%, playing a role of half the sky in some key positions. In terms of talent strategy, Shengye has gradually formed a special talent training plan with characteristics. In addition to business and professional training, it also focuses on employee leadership training. Shengye attaches importance to employee value, has created a comprehensive promotion and salary adjustment mechanism, introduced a partnership plan, and optimized the equity incentive mechanism. Shengye hopes that every employee can give full play to their talents, grow, realize personal value, output social value, and give full play to Shengye's social attributes and responsibilities.

Take your own ESG path

Wang Zheng said that ESG is a very hot topic nowadays, and it is also of great concern to the market and investors. Policies are also constantly being guided, and there are also many policies at the regulatory level. As a leading company in the ESG field, Shengye’s experience is not to blindly let external factors influence its positioning, but to combine its own strategies and business models, find its own position in development, set reliable ESG concepts, choose an ESG path that suits it, and gradually turn ESG into a sustainable development business philosophy.

Conclusion

In the future, Shengye will adhere to the guidance of science and technology and continue to provide one-stop supply chain technology and digital financial solutions for enterprises and financial institutions. In this process, Shengye will integrate the ESG concept into every corner of the company's strategy, operation and management, take the initiative to assume more social responsibilities, and contribute to the country's dual carbon goals.