For Our Sustainability Report Photos Quality2022en

We Deliver Value - Connecting
the Land and the Sea
2022
Sustainability Report
CONTENT
Sustainable Development Delivering Value to

Foreword Governance the Environment
01 02 03
About this report 04 Governance Structure 12 Climate Change 19
Message from the Chairman 05 Stakeholder Engagement 13 Energy Use and Emission Reduction 23
About COSCO SHIPPING Lines 07 Risk Management 15 Water Resources and Waste Water 25
Management
Performance highlights 09 Business Ethics 16
Board statement 10 Solid Waste Management 27
Biodiversity 27
Delivering Value to Delivering Value to Delivering Value to

04 the Employees 05 Marine Transportation 06 the Society 07 Appendix
Recruitment Compliance 29 Safety in Shipping 37 Sustainable Supply Chain 51 Laws, regulations and internal policies 56
Promotion and Development 30 Occupational Health and Safety 41 Prosperous Economy 52 Sustainable development data 57
Protection of Rights and Interests 32 Improvement of Services 43 Rural Revitalization 53 Reporting Indicators Guidelines – HKEX 59
Employee Communication 34 Community Involvement 53 Reporting Indicators Guidelines – GRI 67
Volunteering 55 Independent Verification Statement 72

Foreword
◉ About this report
◉ Message from the Chairman
◉ About COSCO SHIPPING Lines
◉ Performance highlights
◉ Board statement
2022 Sustainability Report Foreword Sustainable Development Delivering Value to Delivering Value to Delivering Value to Delivering Value Appendix
Governance the Environment the Employees Marine Transportation to the Society
About this report
About this report
Reporting Period Scope of report
January 1, 2022 to December 31, 2022 (the The scope of this report covers COSCO SHIPPING Lines Co., Ltd. (hereinafter referred to as ("the Company", "COSCO SHIPPING Lines", "CSL" or "We"). The entity
"Reporting Period"). disclosed in this report is carefully selected based on the selection criteria of "whether there is actual business operation" and the overall impact of the entity
on CSL's environment, society and governance. The production units/companies with no actual business operation or with little or no impact despite actual
operation are filtered out. Should there be any exceptions, there will be a description of specific statistical methods and data dimensions in the corresponding
chapters.
Reference standard
This report complies with the Guidelines for Environmental, Social and Governance Reporting issued by The Stock Exchange of Hong Kong Limited and the GRI Standards issued by the Global Reporting Initiative (GRI).
The compilation of this report mainly follows the following basic principles:
Materiality: The report shall disclose the environmental, social and management matters Balance: The report should provide an unbiased picture of the issuer's performance.
that are relevant to investors and other stakeholders and will have a significant The report should avoid selections, omissions, or presentation formats that
impact on them. may inappropriately influence a decision or judgment by the report reader.
Quantitative: Key performance indicators should be measurable so that the benefits of the Consistency: The issuer should use consistent methodologies to allow for meaningful
environmental, social and governance policies and management systems comparisons of ESG data over time. The report should disclose the change
can be evaluated and verified. Quantitative data should be accompanied by of statistical methods (if any) or any other relevant factors that may affect
explanations for their purpose and impact, and comparative data should be meaningful comparison.
provided when appropriate.
4
Message from the Chairman
In 2022, in the face of geopolitical turmoil, global inflation crisis, the impacts
of industrial transformation and the tightening regulatory environment,
COSCO SHIPPING Lines created a new situation of high-quality development
by enhancing its ability to expand the chain and replenish the chain, serve
customers and create value.
In the face of the rapid transformation of the con- established. Block chain, artificial intelligence, carbon trading work of Shanghai. The design of We protected the legitimate rights and interests of
tainer transportation market, we have strength- Internet of Things, 5G, low-carbon energy saving green and low-carbon full-chain service prod- employees in accordance with the laws, and safe-
ened forward-looking planning and precise and other technologies were widely used in all ucts have been strengthened, and a new path of guard employees' rights to know, participate, ex-
policies, which not only effectively resisted cyclical aspects of production, providing strong sup- green transportation has been laid. press and supervise. We cared for model workers,
shocks, but also achieved "making progress while port for the innovation of transportation chain employees in difficulty and frontline stuffs. Activi-
ensuring stability" in business efficiency, deliv- efficiency. Digital solutions such as one-stop We always strengthen our bottom-line aware- ties to defend the rights of female employees have
ering higher value to customers, partners and customer entrance, customer portrait, product ness and build solid protective barriers. We been carried out. We signed a donation agreement
shareholders. In order to effectively maintain the intelligent combination and recommendation, accurately improved the level of Coronavirus with COSCO SHIPPING Group Charity Foundation
stability of the global industrial chain and supply integrated inventory management, and supply epidemic prevention and control, and ensured and implemented 30 million yuan of assistance
chain, we bravely shoulder the responsibility of chain control tower have been steadily advancing. the physical and mental health of employees funds. During the year, a total of 1 million yuan
central enterprises, strive to be the main force to and the stability of the business situation to was donated to Luolong County in Tibet and Yon-
open up the “wide circulation" and the vanguard In line with the development trend of the in- the greatest extent. We adhered to bottom-line gde County in Yunnan. Actively participated in the
of the "tiny circulation", and build a good ecology dustry, we have further accelerated the pace thinking, cooperated with industry regulatory "Central Enterprise Consumption Assistance and
of mutual trust and win-win with customers, and of green and low-carbon transformation: 12 investigations, and ensured compliance and Rejuvenation Week" activities, purchased a total
win a good reputation. 24,000TEU dual-fuel vessels building solution stable operation in accordance with laws and of 2.35 million yuan of assistance products, and
of dual-brand had been launched (The unified regulations. We paid attention to the prevention made due contributions to continuously promot-
Under the top-level planning of COSCO SHIP- order includes 5 vessels from COSCO SHIPPING and control of integrity risks, and created a good ing the development of characteristic industries in
PING Group, we launched the global digital Lines, 7 vessels from OOCL). All the self-owned atmosphere of honesty, self-discipline, compli- poverty alleviation areas and increasing income
supply chain transformation work: we efficiently vessels had been implemented EEXI calcula- ance with rules and disciplines. We carried out and prosperity of the people who have been lifted
compiled the digital supply chain development tions and CII ratings. Vessel EPL modification large-scale investigation and rectification of po- out of poverty, helping to stabilize the economic
planning. The operation mechanism of "five plans had been formulated. The sea trial of tential security risks to ensure the stability of the performance and promoting rural revitalization.
middle offices and one front desk" had been biofuels was completed. We participated in the security situation.
5
Looking forward to 2023, we will strengthen solutions, so as to improve the efficiency and Beijing-Tianjin-Hebei and the Guangdong-Hong We will actively practice the concept of "employ-
situation analysis, adhere to strategic concentra- resilience of the supply chain and form a greater Kong-Macao Greater Bay Area, actively partici- ee-centered", take a multi-pronged approach
tion, strengthen "future layout" and "risk hedg- industry-leading effect. pate in the construction of the new west land- to protect the legitimate rights and interests
ing", and maintain a good business trend on a sea corridor and the construction of the Hainan of the masses of employees, and promote the
regular basis. We will accelerate the green and low-carbon Free Trade Port, and serve the real economy. harmony and stability of labor relations. We
transformation and upgrading of the shipping will integrate the employee congress, collective
We will operate the new products of the Ocean industry. We will complete the top-level design We will enhance the ability to predict, identi- negotiation, enterprise affairs openness, and
Alliance DAY7 routes, continue to strengthen of the company's green and low-carbon trans- fy and resolve risks, and resolutely guard the employee directors and supervisor systems into
and optimize the main route markets in Europe formation strategic development plan. We will bottom line. We will track and study changes the corporate governance structure, promote
and the North America, and reshape the ocean combined with the latest trends in the develop- in regulatory policies in the maritime industry, the organic combination of democratic manage-
quality. We will further enrich e-commerce ex- ment of the industry, promote the construction prepare response plans, and adhere to legal ment and corporate governance, and enable the
press service and accumulate new competitive of green fleets. At the same time, we will com- and compliant operations. Starting from the masses of workers to obtain visible and tangible
advantages. At the same time, we will adapt bine the requirements of the new environmental protection of employees' life, health and safety, benefits. We will continue to promote counter-
to the new pattern of regional integration de- protection regulations to accelerate the transfor- we will scientifically and accurately grasp Coro- part support to help improve people's livelihood
velopment, closely follow the changes in the mation of environmental protection technology navirus epidemic prevention and control work and rural revitalization, and integrate the specif-
industrial chain, encrypt the transportation of ships. We will do a good job in new energy to ensure that operation are not chaotic. We will ic practice of fulfilling social responsibilities into
capacity investment in emerging, regional and support and guarantee, and actively participate summarize and solidify safety management ex- the connotation of company brand building.
third-country markets, and promote the bal- in the construction of COSCO SHIPPING Group's perience, and transform it into a normalized and
anced improvement of global service capabili- green methanol supply chain system. We will long-term safety mechanism. We will strengthen “For the first place, we continue to race.” In
ties. closely follow the progress of carbon emission technical upgrades and professional training 2023, we will stick to making innovations based
trading to provide support for promoting green to rapidly improve the level of network security on the tradition, leading the future, promoting
We will be committed to the high-quality con- and low-carbon transformation and upgrading. management. We will continue to pay attention high-quality development at a new starting
struction of the "Belt and Road", focusing on up- to key areas and key links in operation and man- point, and moving steadily and far towards the
grading the "vein" of Yangpu Port in Hainan, Bei- We will strengthen all-round strategic coopera- agement, and effectively prevent integrity risks. goal of customer first, value-leading, world-class
bu Gulf Port in Guangxi, Piraeus Port in Greece tion with leading enterprises in manufacturing container ecological integrated service provider.
and Abu Dhabi Port in the Middle East, so as to and other industries, serve small and medi- We will vigorously cultivate and select outstand-
lay a good foundation for the advancement of um-sized emerging enterprises, and deeply inte- ing young talents, especially high-level talents
full-chain services. grate into the customer industrial chain supply in key business fields such as digital transfor-
chain service system. We will take the reshaping mation, technological innovation, green and
Yang Zhijian
We will adhere to customer-centricity, accelerate of cargo flow and the adjustment of consump- low-carbon, intelligent shipping, and supply
the launch of more series of full-chain service tion structure as an opportunity to deeply inte- chain management, so as to consolidate the
products, fully demonstrate the characteristics grate into the regional development strategies foundation for the common growth of enterpris- Chairman
of integrated operation, and launch diversified, of countries such as the integration of the Yang- es and employees in the future.
personalized and customized full-chain service tze River Delta, the coordinated development of COSCO SHIPPING Lines Co., Ltd.
6
About COSCO SHIPPING Lines
Business Introduction Economic performance
COSCO Shipping relies on a global operation

and integrated container transportation service
network. We believe that high-quality "end-
to-end" full transportation solutions can help
different industries reach the world and bring
more business possibilities! 257,751 CNY million
Audited operating income
Container shipping business
COSCO SHIPPING Lines manages its

international and domestic maritime
container transportation ser vices
and related business. By the end of
157,714 CNY million
December 2022, COSCO SHIPPING Audited operating costs
Lines has operated 393 container ships In 2022, the demand in the container shipping ser vice system across the whole industr y
with a capacity of 2.26 million TEUs. industry has been on the rise as the global chain through digitalization to enhance the
The Company operated a total of 404 m a r ke t e n v i r o n m e n t c h a n ge s . W i t h t h e comprehensive logistics and transportation
routes including 264 international development of the global digital economy, service capacity. Building on its solid foundation,
routes (including international new industrial models such as cross-border the Company adheres to the globalization
branches), 56 coastal routes in China e -commerce trade are influencing the strategy, expands to emerging markets, seeks
and 84 Pearl River Delta and Yangtze existing market, and the global trade market sustainable development partners, and builds
River routes. COSCO SHIPPING Lines
has fleet affiliation in 576 ports in about
140 countries and regions around the
69,008 CNY million is becoming more diversified. Against this
background, COSCO SHIPPING Lines firmly
an integrated supply chain service ecosystem
by continuously enhancing the comprehensive
grasps the trend and actively adapts to changes logistics and transportation service capabilities,
world. Audited equity holder's attributable
to seizes opportunities. COSCO SHIPPING Lines improving the service quality and customer
profit (net profit attributable to parent regards digitalization as the key to business experience, and strengthening the business
company) transformation and builds a sound and stable resilience and continuity.
7
International initiatives
COSCO SHIPPING Lines actively participates in international industry cooperation and leverages its influence to promote the safe and healthy development of global trade.
Collaborative Development of Ocean Alliance
Since its establishment in 2017, the Ocean Alliance

continues to uphold the advantages of stable cooperation,
abundant products, and flexible response after six years
8 3 42
of development and growth. The Ocean Alliance members existing lines of new lines were added totaling lines
include COSCO SHIPPING Lines, OOIL, CMA CGM and the Alliance were
Evergreen Shipping. COSCO SHIPPING Lines and OOIL
upgraded
always keep in mind the initial aspiration of providing
customers with quality service, and continuously cooperate
with the Ocean Alliance to optimize the line layout. In 2022,
the 8 existing lines of the Alliance were upgraded, and three
new lines were added, totaling 42 lines with 352 ships, an
equivalent of 4.43 million TEUs.
42 7 23
provided services lines from the Far East trans-Pacific lines
In 2022, the Ocean Alliance has provided services and and products across to the Northwest Europe
products across 42 lines, including 7 lines from the Far East lines
to the Northwest Europe, 4 lines from the Far East to the
Mediterranean, 23 trans-Pacific lines (including 15 American
west coast lines, 8 American east coast and gulf lines), 3
trans-Atlantic lines (including 1 line outside the Alliance), 4
lines from the Far East to the Middle East, and 2 lines from
the Far East to the Red Sea.
3 4 2
trans-Atlantic lines lines from the Far East lines from the Far
to the Mediterranean East to the Red Sea
8
Performance highlights
Performance highlights
Container shipping business Social performance

Economic data
Employment performance
373 ships 2.11 million TEU 263 lines 100% 33 hours

CSL self-operated fleet Total shipping capacity International routes (including international Training and Average training hours
feeder lines) education coverage per employee
Safety performance
56 lines 84 lines
Coastal routes in China Branch lines in Pearl River Delta
and Yangtze River
0‰
Injury rate per thousand people
Environmental performance Community
15,183,844 tons 4,736,250 tons 226,298 tons 3,151 million 284 times
Investment in Times of participating
Greenhouse gas emissions Total marine fuel consumption Sulfur oxide emissions community activities in community activities
357,992 tons 240,584 tons 123,293 tons 0 incident 894 hours

Oxides of nitrogen emissions Fresh water consumption Seawater desalination Oil spill accident Hours of community activities
capacity
9
Board statement
Board statement
Board Responsibility Materiality Analysis
The Board of Directors of COSCO Shipping Lines is responsible for the Company's overall ESG The Company pays continuous attention to the needs of internal and external stakeholders, and
development direction and ESG strategy formulation, supervising and coordinating ESG-related risk identifies and evaluates material ESG issues according to the communication and feedback of
management, and is the highest responsible and decision-making body for ESG matters. The Board stakeholders to keep improving the sustainable development strategy. During the Reporting Period, the
of Directors bears the ultimate responsibility for COSCO Shipping Lines' ESG strategy and disclosure. Company conducted stakeholder surveys, updated the identification of material issues, and defined
The Company regularly evaluates the materiality of environmental, social and governance issues, and the priorities of ESG management.
analyzes to makes decisions on the potential impact and opportunities of the overall strategy.
Risk Identification Target Progress
The Sustainable Development Committee is set under the Board of Directors, responsible for In 2021, the Company based on the target guidelines specified by COSCO Shipping Lines, has set five
identifying, analyzing, managing, and timely controlling ESG-related risks and making decisions on environmental targets, including greenhouse gas emission reduction target, energy structure upgrade
ESG-related matters. The Sustainable Development Committee regularly reports the list of identified target, ballast water management target, exhaust emission reduction target, and waste reduction target.
risks to the Board of Directors and provides risk analysis and decision-making support. In 2022, the Board of Directors continued to pay attention to the progress towards the environmental
targets, supervise sustainability tasks related to the target, and review target achievement.
10
Sustainable Development Governance
In practicing the responsibility of sustainable development,

COSCO Shipping Lines regards Board diversity as a goal and
the concept of sustainable development as the core. The
Company adheres to transparent governance in its daily
operations to exert a positive impact on the enterprise,
industry, and society, making efforts and contributions to
building a better world.
◉ Governance Structure
◉ Stakeholder Engagement
◉ Risk Management
◉ Business Ethics
Governance Structure
Governance Structure
COSCO Shipping Lines adheres to transparent operation, values the diversification and professionalism COSCO Shipping Lines has continuously improved its corporate governance structure and governance
of the board of directors, and believes that a sound and efficient board of directors is the foundation structure for sustainable development. It is committed to maintaining high standards of corporate
of sustainable development and governance of the enterprise. In our daily operation, COSCO Shipping governance to ensure its sustainable development. The Company established a board of directors and a
Lines always adheres to the concept of sustainable development, actively fulfills its social responsibility board of supervisors, and the board of directors is the decision-making body for business, which is made
amid global economic recovery, and works hard with all stakeholders to pursue common development up of 8 members, including 4 internal directors (including 1 employee director), 4 external directors.
and create a better future for the world. The Board of Supervisors performs the dual supervisory functions of the board of directors and the
management. We implement the general manager responsibility system under the leadership of the
board of directors. Our operating management consists of a marketing and major account management
committee, a risk management committee, a sustainability committee, a safety committee and a supplier
management committee, who support the management of business risks and compliance.
Board of Board of
Directors Supervisors To better implement the strategy of sustainable development in its daily governance, the
company established Sustainability Reporting Procedure , which clarifies the requirements
of drafting, reviewing and publishing of Sustainability Reports. The Company established
the Sustainability Committee to take the lead in managing matters related to sustainable
development who is mainly responsible for working out sustainable development
strategies, objectives and management policies, coordinating the resources required for
fulfilling sustainable development objectives, supervising the implementation of sustainable
development strategies, reviewing the progress of the implementation of sustainable
General development objectives, inspecting activities related to sustainable development, reviewing
Manager the annual sustainable development report.
The Company assigned an independent department to lead specific practices related to

sustainable development, assisting the Sustainability Committee to implement sustainable
development policies, including improving the system of collecting information related to
sustainable development, analyzing and identifying climate change risks, and formulating
sustainable development goals and policies. In addition, every year, COSCO Shipping Lines
will invite a third party to conduct internal and external audits and supervise the operation
of the internal control system so as to improve its governance system.
Marketing and
Risk Supplier
major Account Sustainability Safety
Management Management … …
Management Committee Committee
Committee Committee
Committee
COSCO Shipping Lines' governance structure
12
Materiality Assessment
Stakeholder Engagement
COSCO Shipping Lines attaches great importance to the impact of its
operations on stakeholders, constantly listens to the opinions and High ● Customer Satisfaction ● Anti-competitive behaviors ● Digital Security ● Optimize terminal operations
suggestions from stakeholders from all walks of life, responds to the ● Customer Complaints ● Labor complaints mechanism ● Safety of shipping ● Environmental compliance
expectations of stakeholders, and commits to sustainable value co-creation.
In order to maintain communication with stakeholders, the Company
● Responsible procurement ● Training and education ● Anti-corruption ● Greenhouse gas emission
has established a normalized communication mechanism to provide an ● S

upplier environmental and ● Community public welfare ● C
ontraband management andanti- ● Customer privacy protection
important reference for decision-making, and to continuously improve the

socialassessment smuggling of seabomegoods
● Diversity and equal opportunities ● Child and forced labor
sustainability management. The Company has conducted frequent and ● S
trengthen the safety ● Occupational health and safety
managementof the outsourced ● Energy management ● S
cientific and
irregular communication with stakeholders in seven aspects, i.e., economy, business ● Employees' rights technologicalinnovation
corporate governance, product and service safety, environment, employees, ● E
nhance staff awareness of
environmentaprotection ● Economic perfomance ● Socio-economic compliance
● Human rights assessment
supply chain and community, and listened to suggestions and opinions from
all parties. ● Employee care ● Marine plastics ● Risk management
The level of interest in the topic

● Tax transparency ● Materal use ● Employment
In 2022, the Company conducted a stakeholder survey in the form of ● Water resource management ● Biodiversity
questionnaires and interviews, covering internal and external stakeholders
● Cimate change and response
of the COSCO SHIPPING Lines'. Sustainability issues and materiality
matrix are identified and developed from the survey in accordance with
their significance to the Company, which are considered as guidance for
disclosure in this Report.
● Freedom of association andcollective bargaining ● Waste management
● Empowerment throughcollaboration ● Corporate governance
● Indirect economic impact ● Exhaust emissions
● Market performance ● Anti-discrimination
● Waste water discharge management
● Political contributions
Low The importance of the topic to the development of CSL High
13
Substantive Topic Table
Category Topics Major stakeholders Communication channel Category Topics Major stakeholders Communication channel
Economic performance Shareholders Council Material use
Public Interest Organizations/ Roadshow/reverse roadshow

Water resources management
Indirect economic impacts NGOs/Industry Associations Investor Summit
Interview Greenhouse gas emission Government and regulatory Press release
Media
Tax transparency Performance conference authorities Interview
Climate change and response
Economic Investment institutions/ Press release Performance conference
Social organization
shareholders Community public welfare Biodiversity Community public welfare
Market performance Environmental Media
activities activities
Marine plastics
Corporate governance Enhance staff awareness of
General meeting of shareholders
Investment institutions/
Anti-corruption Roadshow/reverse roadshow environmental protection
shareholders
Investor Summit
Risk management Employment
Government and regulatory Public mailbox
Corporate Anti-competitive conduct authorities Information Bulletin Occupational Health and Safety
governance Political contributions Business partner Press release
Training and education
Technical training Employee training
Customers
Socio-economic compliance On-site review Diversity and equal opportunities Employee communication/
Employee forum
Customer Satisfaction Anti-discrimination
Employee satisfaction survey
Media
Customer Complaints Labor complaints mechanism Interview
Press release Government and regulatory
Performance conference
Insurance Financial Institutions Community public welfare Employees' rights authorities
Customer Privacy Protection Employee Public mailbox
activities
Customers Freedom of association and Others Information bulletin
Optimize terminal operations On-site review
collective bargaining Press release
Media Information bulletin
Scientific and technological Technical training
Business partner Interview Child and forced labor
Product Service and innovation
Performance conference
Security Contraband management
Investment institutions/ Human rights assessment
General meeting of shareholders
shareholders
and anti-smuggling of Roadshow/reverse roadshow Employee management
seaborne goods Others Investor Summit
Responsible procurement
Safety of shipping Technical training
Environmental and social Public mailbox
Digital Security Government and regulatory
assessment of suppliers Information bulletin
authorities
Environmental compliance Press release
Supply chain Strengthen the safety Suppliers
Supplier assessment
Exhaust emissions Press release management of business
Insurance Financial Institutions Interview outsourcing
Waste disposal
Insurance Financial Institutions Performance conference
Interview
Environmental Waste water discharge Community public welfare Community public welfare Media
Media Performance conference
management activities Government and regulatory
Public mailbox
Social Cooperation for empowerment authorities
Energy management Information bulletin
14
Risk Management
Risk Management
COSCO Shipping Lines always puts risk manage-
ment and control in an important position in
its operation and makes it reliable and efficient
by establishing and improving the risk manage-
ment framework and internal control system.
During the Reporting Period, based on the inter-
national COSO-ERM framework and the domes-
tic Basic Rules for Enterprise Internal Control ,
COSCO Shipping Lines has strengthened the
internal control supervision, and carried out the
internal control self-evaluation and supervision
evaluation, so as to realize the systematization
and comprehensiveness of governance. COSCO
Shipping Lines always pays attention to mini-
mizing risks to a reasonable range, and actively
seeks opportunities while reducing the impact
of risks on operations.
Risk Management Framework Risk Management and Early Warning Mechanism
As the highest decision-making body of risk COSCO Shipping Lines attaches great impor- Lines has invited an external consulting company the Company constantly collects, tracks and
management, the Board of Directors is respon- tance to internal risk prevention and control, to carry out internal control supervision and analyzes major risk events and important
sible for the overall risk management. Under conducts internal control self-evaluation every evaluation in 2022. COSCO SHIPPING Lines has information of the year. An analysis report about
the leadership of the Board of Directors, the Risk year considering the nature and practicality of further supervised and evaluated its subsidiary the progress and changes in trending events will
and Compliance Management Committee is its business, and formulates rectification plans companies. All subsidiaries of COSCO Shipping be submitted to the management.
established to perform the duties of identifying, for deficiencies in operations. In order to ensure Lines were included in the scope, achieving 100%
managing, supervising and controlling various the timeliness of rectification, the Company completion of supervision and evaluation.
risks of the Company, and to provide risk analy- monitors the rectification on a monthly basis.
sis and management advice to the Board of Di- In order to have a sound response strategy to
rectors. After the Risk and Compliance Manage- COSCO Shipping Lines not only focuses on emergencies, the Company has continuously
ment Committee completes risk identification
and analysis, the Legal and Risk Management
Departments will take the lead in implement-
internal evaluation, but also actively adopts
external experts' opinions to supervise the key risk
management. Every year, the Company engages a
carried out and improved risk early warning
and supervision mechanism. To effectively
ensure timely response to risks and solution
100 %
ing it. third party to conduct external audit to supervise implementation of, the Company identifies risk achieving completion of supervision
the status of internal control and risk management. early warning indicators on a quarterly basis and evaluation
During the Reporting Period, COSCO Shipping and issued quarterly briefings. In addition,
15
Business Ethics
Business Ethics Anti-Monopoly
The Company always implements the concept of integrity and fairness in its daily operations, and A s a leading shipping enterprise, COSCO anti-monopoly and procurement management,
adopts a zero-tolerance attitude towards all acts violating business ethics, including corruption, Shipping Lines has always taken a serious refine management requirements and improve
bribery and monopoly. The Company has established a sound business ethics system to strengthen attitude towards anti-monopoly, promoting management level.
employees' awareness of business ethics and guide the just business ethical values. industry norms and safeguarding the interests
of customers and public social groups. In the face of the ever-changing international
environment of anti-monopoly compliance
Anti-Corruption Management The Company strictly abides by international regulations, COSCO Shipping Lines actively
and regional anti-monopoly laws and regula- responds to and studies international anti-
tions. In 2022, COSCO SHIPPING Lines compiled monopoly laws, regulations, and rules. In 2022,
The Company strictly abides by the United the Company has created a clean and honest
the Anti-monopoly Compliance Management the United States issued the Ocean Shipping
Nations Convention against Corruption, the For- operational environment and governance. At
Manual, and identified the list of anti-monopoly Reform Act. COSCO Shipping Lines carried
eign Corrupt Practices Act (FCPA), the Criminal the same time, as members of the Maritime
risks in key positions. On the basis of the exist- out research and evaluation accordingly by
Law of the People's Republic of China and other Anti-Corruption Network, COSCO SHIPPING
ing Anti-monopoly Compliance Management interpreting policy trends and regulator y
relevant laws and regulations. The Company has Lines joined hands with all organizations in the
Measures and the Anti-monopoly Emergency requirements, so as to ensure that the
set up a Commission for Discipline Inspection industry to create a fair and clean maritime en-
Response Plan, COSCO SHIPPING Lines plans to governance norms always keep pace with the
to formulate and implement anti-corruption vironment. During the Reporting Period, there
further introduce special management guides in latest laws.
policies, and to manage and supervise the com- has been no major lawsuit related to corruption
pliance of employees' behaviors. By continu- or unfair competition against COSCO Shipping
ously promoting internal anti-corruption review, Lines.
16
Business Ethics
Whistle-Blower Protection
The Company has always held employees to the highest standards in terms of business behavior, and
created a liberal, open, safe and efficient communication environment. The Company encouraged
employees and external person to report all kinds of behaviors violating disciplines or professional
ethics. The Company provides a variety of open and transparent reporting channels, including telephone
and email.
To protect the rights and interests of the whistleblowers, the Company has established a whistleblower Case Anti-monopoly Training
protection mechanism, adopting a zero-tolerance attitude towards retaliation. The Company promises
to protect the privacy and safety of the whistleblowers and avoid malicious acts such as retaliation.
In the process of verifying the reported information, the Company will not ask for the whistleblower's COSCO SHIPPING Lines provided the
information, neither disclose the information of accusation. It is strictly forbidden to dismiss, demote, anti-monopoly training in the form of
suspend, threaten, harass or discriminate against the whistleblower in any form. webinar, to explain the main provisions
of domestic and international anti-mo-
nopoly laws. The training covered all
Awareness Promotion departments and subsidiaries at home
and abroad of CSL with an attendance
To continuously improve the compliance awareness of business ethics and create a culture of totaled 4,103 people. To consolidate
compliance, the Company organized anti-monopoly training activities to guide employees to improve learning achievements of employees,
their ethics. the Company conducted online an-
ti-monopoly compliance tests for all
employees, with Chinese and English
tests designed respectively for domestic
and foreign employees. The pass rate of
participants reached 99%.
Featured Training on Business Ethics
4,103people
The training covered all
departments and subsidiaries at
During the reporting period home and abroad of CSL with an
attendance totaled
COSCO SHIPPING Lines provided anti-corruption and integrity education to the Board of Directors and all employees (including
labor dispatch employees). The integrity awareness of all employees has been enhanced through activities such as themed-
month activities, portfolio displays, and short video broadcast selection. 99%
The pass rate of participants
reached
17
Delivering Value to
the Environment
As the backbone of global trade, shipping plays an important
role in coping with climate change and promoting environmen-
tal protection. As a global shipping company, we have taken the
initiative to assume environmental responsibilities, established
and continuously improved its environmental management
system and obtained the ISO 14001 Environmental Manage-
ment System Certification. CSL actively responds to climate
change, explores energy transformation and carbon reduction
measures, and realizes the joint development of environmental
protection and economic benefits to contribute to the green
development of global shipping.
◉ Climate Change
◉ Energy Use and Emission Reduction
◉ Water Resources and Waste Water Management
◉ Solid Waste Management
◉ Biodiversity
Climate Change
Climate Change
Climate change poses new requirements and
challenges to the development of the ocean
shipping industry chain. Actively responding to
climate change is key to realizing sustainable
development and becoming a leading interna-
tional ocean shipping enterprise. CSL is com-
mitted to protecting the ecological environment
and continuously promoting green shipping.
Based on the framework laid out by the Task
Force on Climate-related Financial Disclosures
(TCFD), CSL has systematically identified the
risks related to climate change, analyzed their
coping strategies, and set environmental protec-
tion targets.
Governance
COSCO SHIPPING Lines has established a sound

climate risk governance structure, incorporated
climate-related risk management into the Com-
pany's risk management system, reviewed ESG
strategy and performance, climate risk control
strategy and risk assessment report, and guided
the formulation of sustainable development
strategies, objectives, and management poli-
cies. We also factored energy saving, emission
reduction and environmental protection-related
indicators into executive compensation.
Strategy
Based on its own business characteristics and the development trend of long-term climate pattern changes on assets. The transformation risk refers
global shipping, CSL actively identified risks related to climate change and to the risk related to the transformation to low-carbon economy, such as
analyzed the potential financial impacts. CSL identified various physical market risks brought about by changes in policies and regulations and
risks and transition risks by referring to different climate scenarios and customer behavior. Based on the identified risks related to climate change,
combining them with business development. Among those risks, physical CSL further analyzed the corresponding business and financial impacts.
risks refer to the risks related to the impact of acute climate events and
19
Climate Change
Climate Change Risk Identification
Category Risk Description Potential financial impact
1. Heavy rain and floods damage related facilities, and cause power failure in ships, equipment and facilities, which
leads to evacuation of personnel, interruption of operations and loss of assets
Physical risks Flood (including 2. L
ow visibility and abrupt rise in water levels and water velocities lead to reduced maneuverability of ship locks and
Verification and early scrapping of existing
assets
rainstorms and river ships, which affects navigation restrictions and ship berthing of sea routes
Difficulties in transportation
overflows) 3. E
xtreme precipitation may lead to sudden flooding, affect the operation of inland roads, railways, docks and inland
waterways, and hinder normal business operations Increased operating costs
4. T
he safety of the ship, crew and cargo is affected, resulting in delayed shipment and claims for damage to the cargo
1. It is difficult to forecast strong winds, which could damage the ship infrastructure and related facilities, ships or
cargo, causing continuous interruptions of operations and loss of assets
Verification and early scrapping of existing
Acute risk 2. Extreme weather will threaten the safety and health of personnel. Under the condition of strong wind/cyclone, the assets
Strong wind/cyclone working hours and conditions of employees should be strictly controlled, which will affect the operating efficiency
Difficulties in transportation
and increase the operating cost.
Increased operating costs
3. If ships encounter typhoon/cyclone/storm, they may sink due to high waves and storms caused by typhoon/cyclone/
storm, resulting in loss of profits.
Ocean acidification 1. Seawater temperature rise and ocean acidification accelerate the corrosion of ship hull, so it is necessary to use
Increase maintenance costs
Sea temperature rise materials with higher corrosion resistance and pay higher maintenance fees
1. Rising sea levels change wave and tidal patterns, affecting the schedule of shipping companies
Affect workforce management and
Rising sea level 2. Tidal changes affect the sedimentation of the waterways, which reduces the smoothness of the waterways. So
Chronic risk planning Increased operating costs
dredging works are required, and the operating costs rise.
1. T he International Maritime Organization issued the IMO Preliminary Strategy for Greenhouse Gas Emission
Reduction from Ships , which requires the shipping industry to reduce the total greenhouse gas emissions by 50% by
Transition 2050
risks
Existing requirements
Increase operating and maintenance
and supervision of 2. The Chinese government has continuously promoted green shipping, supported the low-carbon transformation of
costs
products and services the shipping industry, and strengthened the requirements for enterprises' energy use
3. The shipping industry will be included in the EU Emissions Trading System, and enterprises are required to monitor,
report and verify carbon dioxide emissions
1. T
he shipping industry will be included in the EU Carbon Emissions Trading System, and enterprises will have to pay
Implement carbon for the carbon dioxide generated by their ships
Laws and Increase operating costs
pricing mechanism 2. China has opened up the national carbon trading market and will incorporate the shipping industry into carbon
Regulation Risk
trading in the future
20
Climate Change
Category Risk Description Potential financial impact
1. The new IMO regulations include the requirements for installing DCS (Data Collection System) and for data
disclosure (actual fuel consumption data and other data that need to be disclosed). Companies that do not
Strengthen emission meet the requirements may be prohibited from engaging in the shipping industry. Increase operating costs
reporting obligations
2. The shipping industry will be included in the EU Emissions Trading System, and enterprises are required to
monitor, report and verify carbon dioxide emissions
1. Customers put forward relevant requirements for reducing carbon emissions in container transportation
business. If customers' energy-conservation and carbon-reducing targets can't be met, there will be fewer orders
or more idle ships, which will increase operating costs. COSCO SHIPPING Lines should be aware of these risks,
Customer behavior actively communicate with customers, and make clear their needs to ensure that the Company can still provide Changes in consumer preferences lead to a
change flexible end-to-end logistics services for them decline in demand for goods and services
2. Increase in indirect (operating) costs: The increase in customers' demand for low-carbon services and green
transportation will accelerate the formulation of the transition strategy to carbon neutrality, which increases
R&D expenses.
Market risk
1. Higher oil prices increase operating costs

Rising raw material price leads to the increase
Rising cost of fuel oil 2. The market price of low-sulfur oil fluctuates greatly, which will affect the operating cost
of production cost
3. The use of other energy sources increases operating costs
1. Customers put forward relevant requirements for reducing carbon emissions in container transportation. If
customers' energy-saving and carbon-reducing targets can't be met, there will be fewer orders or more idle
Change in customer ships, which will increase operating costs
Decline in demand for goods and services
preferences 2. If CSL fails to meet the customers' requirements for sustainable development, such as energy conservation and
consumption reduction, and become a low-carbon leader in the industry, then the existing customers may turn
to other companies. The loss of corporate customers, which in turn reduces income
Reputation 1. If the environmental performance and disclosure are not inadequate, then investors and customers may choose
Growing concern of the Company's competitors instead, resulting in a decrease in the Company's income
stakeholders about 2. Investors put forward requirements for the use of new/renewable energy Decline in demand for goods and services
negative feedback ustomers and investors are increasingly interested in environmental performance. If CSL does not comply with
C
IMO regulations, it may lose its contracts and investment
21
Climate Change
Risk Management
Based on the identified climate risks, CSL CSL evaluates the risks and opportunities of climate change on operation through a sound Energy source
has developed strategies to deal with climate risk identification process. Through identification, measurement, and monitoring of
change, promoted the green transformation of risks and opportunities, CSL evaluates and prioritizes the possible business and financial Use biofuels in cargo ships
international shipping from different dimen- impacts of climate change risks and opportunities, and takes measures to mitigate, transfer
sions, proactively reacting to climate change. or control risks, while taking the initiative to grasp important opportunities brought by
To replace high-emission fuel oil, new energy sources with
climate change. low/zero carbon emissions must be used in long-term
Dealing with extreme weather development. Therefore, biofuel-related products can be
developed to attract more customers
Develop emergency response plans Identification of risk and opportunity
Strengthen meteorological monitoring and early warning
Regularly update the guidance on preventing typhoon
Refer to the framework of the Task Force on Climate-related Financial Disclosures (TCFD) Resource efficiency
and floods
while also considering the business characteristics of the Company to identify climate
Strengthen ship-shore contact to ensure the smooth Adopt a more energy efficient transportation mode
risks and opportunities and develop a list of climate risk
progress of typhoon and flood prevention and control
Energy efficiency should be continuously improved

Greenhouse gas emission Measurement of risk and opportunity and ship energy efficiency design should be optimized
based on Energy Efficiency Design Index (EEDI), and thus
lowering costs and carbon emissions
set greenhouse gas emission reduction targets and Collect ratings of various risks from all departments based on the industry, market, and
commit to achieving carbon neutrality before 2060 policy background from the perspectives of probability and materiality
Provide carbon emission calculator for customers to
calculate carbon emissions during sea transporta- Prioritize the identified risks based on the ratings and sort out risks of the place where Market
tion the Company operates accordingly
Climate change affects customer choices
Energy Use Compared with other means of transportation (including

Response to risk and opportunity
air, road, and rail transport), shipping has lower carbon
Implement energy-saving and emission-reduction emissions per kilometer-tonne; besides, ferries adapt
measures to reduce the use of fuel oil through Evaluate risks and opportunities brought by climate change and develop a response plan better to severe weather (such as heavy snow). Therefore,
process control of navigation and shore power more and more customers change their transportation
transformation method to shipping as needed
The Identification Process for Climate Risks and Opportunities
Climate Change-related Opportunities
Information Disclosure
Continuous disclosure of greenhouse gas emis- Metrics and Targets

sions
Abide by IMO requirements and regulations
COSCO SHIPPING Lines continuously monitors and regularly discloses greenhouse gas emissions. CSL attaches great importance to the impact on the
environment during production and operation, develops environmental targets and policies, and makes steady progress towards the targets by taking
Climate Change Response Strategies measures including green shipping, energy conservation and carbon reduction, and emission management to ultimately achieve the carbon neutrality goal.
22
Energy Use and Emission Reduction
Use of Fuel
Fuel oil is the main energy source of the container transportation business. With the help of the advanced technology of
digital shipping, CSL implements and promotes the monitoring of fuel oil use, promotes fuel-saving measures in shipping,
Energy Use and Emission Reduction and realizes the efficient use of fuel oil.
Energy Efficiency Improvement

COSCO SHIPPING Lines has always adhered to the concept of "energy
conservation, carbon reduction, and green development" and kept CSL has established a strict daily dy- through the whole-process manage- using low-sulfur fuel oil and installing
reducing the environmental impact and carbon emissions of business namic monitoring system to improve ment of fuel oil budget (pre-control), desulfurization tower. By the end of
operations. CSL actively adapts to the needs of future competition, the efficiency of fuel oil use and real- operation monitoring (in-process the Reporting Period, the usage ratio
responds to global customers' green and low-carbon initiatives, ize energy conservation and efficien- monitoring), and fuel oil cost anal- of low-sulfur oil by CSL was 90%, The
conforms to the new trend of green development in container shipping, cy improvement. CSL made full use ysis (post-inspection), achieves the number of ships with desulfurization
and continuously promotes the construction of a clean fuel fleet. of information systems and various shift from averaging ship speed to devices was 23.
monitoring methods to strengthen averaging ship power by conducting
the daily dynamic monitoring of a 24/7 real-time monitoring of fuel oil CSL's container transportation busi-
ships, realize full coverage of ship op- consumption of ships, thus reducing ness will focus on green, low-car-
eration monitoring, actively optimize the instantaneous fuel consumption bon and intelligent ships in future
route selection, avoid severe sea con- and carbon emissions of ships. research, and strives to improve the
ditions, implement berthing plans, overall technical level of the fleet.
control the speed when sailing into At the same time, in response to the After the following technical retrofits,
port, and reduce fuel consumption. IMO 2020 sulphur cap, CSL strictly all the new ships of COSCO SHIPPING
abides by relevant international rules Lines can meet the requirements of
COSCO SHIPPING Lines enhances the and regulations and meets the upper IMO's Energy Efficiency Design Index
closed-loop management of fuel use limit of sulfur emission set by IMO by Phase 3 (IMO EEDI PHASE III).
Energy efficiency improvement in ship design
Select the best combination Use energy-saving devices Equip new ships with various energy sav-
of hull form, propeller, and installed before and after the ing and emission reduction technologies
energy-saving device that propulsion system to raise including efficient main engine, axle gener-
meets the needs for oper- propulsive efficiency and ator, frequency conversion control system,
ational conditions through reduce fuel consumption. heating ventilation and air conditioning
optimization, screening, and (HVAC) system, high voltage shore power
comparison test of the ship facilities, and reserve adequate space for air
models to maximize the pro- lubrication systems to make it possible to
pulsive performance. upgrade and retrofit in the future.
23
Energy Use and Emission Reduction
Clean Fuel Promoting Shore Power Emission Reduction

In order to achieve the long-term goal of green and low-carbon transformation, CSL will vigorously
NOX (nitrogen oxides), SOX (sulfur oxides) and COSCO SHIPPING Lines launched a carbon
promote the application of green methanol fuel in the fleet. Compared with traditional marine
particulate matter emitted by fuel oil combus- emission calculator in 2010, an advanced dy-
fuel, methanol has no nitrogen oxides, sulfur, or low particulate emissions. With the continuous
tion of ships cause environmental pollution, namic carbon emission calculation tool for cus-
establishment and improvement of the green methanol supply chain system, methanol stands out from
and the generators could be turned off after the tomers all over the world to calculate the CO2
many new energy fuels and will become the first choice for CSL to promote the construction of a new
ship is docked to use shore-based power sup- emissions in their supply chains. The calculator
energy container fleet in the future.
ply for electricity as an alternative. CSL actively also helps customers achieve carbon emission
promotes the construction and use of shore reduction targets in the supply chains. CSL has
power in ships to reduce fuel consumption and achieved remarkable results in reducing energy
exhaust emissions when the ships are docked at consumption and CO2 emissions by managing
the port. and controlling fuel oil use, optimizing naviga-
Case Upgrade Plan for Methanol Dual-Fuel Ships in COSCO SHIPPING Lines tion lines, and adopting innovative energy-sav-
ing technologies. During the Reporting Period,
By the end of the Reporting Period, COSCO SHIPPING Lines had signed 5 methanol dual- the greenhouse gas emission of CSL's container
Using Shore Power in Ships
fuel ships of 24,000 TEUs to follow the trend of green and low-carbon and enhance its core shipping business was 15,183,844 tons.
competitiveness. CSL's container transportation business
has actively promoted the construction of CSL not only actively reports the CO2 emissions
shore power systems. During the Reporting in daily operations but also manages and re-
Period, COSCO SHIPPING Lines completed the ports the emissions of sulfur oxides and nitro-
transformation of the high-voltage shore power gen oxides, constantly optimizing its own emis-
system of 26 Chinese ships. By the end of 2022, sion and environmental performance. COSCO
CSL's fleet had 105 self-owned vessels equipped SHIPPING Lines complies with the requirements
Case Trials of Ships Using Biofuels in COSCO SHIPPING Lines with the high-voltage shore power system. of the Action Plan for Establishing Ship Emission
Control Zones in China issued by the Ministry of
Transport of the People's Republic of China and
D u r i n g t h e Re p o r t i n g Pe r i o d , CO S CO sets more stringent emission standards to re-
SHIPPING Lines carried out the trial of
biofuels. CSL selected COSCO HOUSTON as
1,400tons duce the amount of sulfur in marine fuels used
for shipping.
the ship to perform the trial with two batches
of B20 and B24 biofuels totaling 1,400 tons.
CSL selected COSCO HOUSTON
as the ship to perform the trial
105
The trial showed that the use of biofuels with two batches of B20 and B24 self-owned vessels equipped with the high-
was normal, and the carbon emission was
reduced by more than 15% compared with
traditional fuel oil, which accumulated usage
biofuels totaling voltage shore power system
15,183,844 tons
and managerial experience for subsequent

promotion.
15% the greenhouse gas emission of CSL's container
shipping business was
the carbon emission was reduced by
more than
24
Water Resources and Wastewater Management
Water Resources and Wastewater Management Oil sewage Management

During shipping, enterprises should rationally allocate water resources for mechanical operation and 2022 COSCO SHIPPING Lines CSL strictly manages the discharge of oil sewage
daily use by the crew, as well as manage the ballast water and ship oil sewage to avoid harming the and ensures that all indicators of the discharged
marine ecology. CSL strictly implements the regulations on the treatment and compliance discharge oil sewage are in line with local standards by
of sewage and wastewater from shipping vessels, strictly abides by relevant laws and regulations
domestically and abroad, and formulates and implements clear and complete operation processes for
ballast water and oil sewage based on domestic and foreign laws, regulations, and industry conventions
240,583 tons strengthening the monitoring of the offshore oil
sewage discharge and the management of oil
sewage sealing. COSCO SHIPPING Lines has for-
to reduce and control the environmental impact caused by ballast water and oil sewage. Total consumption of fresh water mulated and strictly abides by the Regulations
on the Management of Oil Sewage Treatment,
conducts the management of the whole process
through planning, approving, reviewing, con-
Sea Water Desalination 123,293 tons firming, applying, arranging and implementing
the offshore oil sewage discharge, and sched-
CSL attaches importance to the efficient use of water resources and optimizes the utilization of water Seawater desalination capacity ules on-site inspections of the discharge such
resources through seawater desalination. CSL's water is mainly derived from desalination and only as ships and barges oil quantity measurement
a small part is sourced from freshwater consumption. Currently, the Company does not face any and oil content sampling inspection. After the
problem in water sourcing. The ships of CSL are equipped with seawater desalination equipment to treatment, CSL tracks, reviews and registers the
convert seawater into drinking water to supplement the onboard water for ships and reduce freshwater information on the oil sewage discharge to en-
consumption. At the same time, CSL continues to cultivate its employees' water-saving awareness and sure oil sewage treatment compliance.
habits and encourage them to participate in the optimal utilization of water resources on ships.
CSL has also formulated an emergency plan
for oil sewage leakage and guides the crew to
handle fuel oil spill accidents according to the
Emergency Plan for Oil Pollution on Board. In
case of fuel oil spill, the personnel on duty shall
promptly report to the captain or other per-
sons in charge. After confirmation, the person
in charge shall immediately send out the oil
spill alarm and organize the whole crew to take
emergency actions to reduce the impact of fuel
oil spill accidents.
25
Water Resources and Wastewater Management
Ballast Water Management
In order to protect the marine ecosystem and reduce the risk of species invasion and dispersion, CSL abides by the International Convention on the Control and Management of Ship Ballast Water and Sediments
(i.e., the Ballast Water Convention) issued by IMO, and any violation of the Ballast Water Convention is prohibited. COSCO SHIPPING Lines has formulated and implemented the Instructions for Management of
Ballast Water and the Ballast Water Management Plan, and equipped commercial ships sailing internationally with ballast water treatment devices to manage ballast water throughout operation, replacement, safety
inspection and recording.
Operation Replacement Checking Recording
● equire ships to avoid sucking

R ● hen ships need to change their
W ● equire the captains to pay
R ● n each ship, designate a crew
O
ballast water in restricted areas ballast water, they should do it attention to the sea conditions member to record the operation
and locations, such as areas in sea areas at least 200 nautical and weather in real time, and of ballast water in the Ballast
infested with pathogens and miles away from the nearest ensure that ballast water is Water Record Book, and each
pests shore and at least 200 meters changed in good weather operation record shall be signed
deep condition by the first mate, and each page
● equire the crew members to
R shall be signed by the captain
remove sediment of ballast ● I n case of special circumstances, ● he ballast water tanks should
T
water in time ships should replace their ballast be checked regularly to ensure
water in sea areas as far away that ballast water devices are in
● void unnecessary discharge
A from the shore as possible, such good condition
of ballast water while ensuring as sea areas at least 50 nautical
safety during goods loading and miles from the nearest shore and
unloading at least 200 meters deep
Ballast Water Management Requirements
26
Solid Waste Management/Biodiversity
Solid Waste Management Biodiversity

CSL sets an example to protect the marine environment and minimize the impact of garbage on the marine environment CSL attaches great importance to the protection of the ecological environment
during shipping through strict management of ship garbage, and recycling of ships. CSL strictly abides by the laws, regulations and biodiversity, reducing environmental pollution, protecting marine ecology
and international conventions on ship garbage disposal to control the disposal and discharge of harmful waste from ships. and biodiversity during shipping. CSL strictly abides by the regulations on the
discharge of ballast water to avoid the ecological impact caused by biological
invasion. At the same time, COSCO SHIPPING Lines applies specialized paint for
hull coating that prevents marine species and organisms from adhering to the
Ship Recycling Garbage Management on Ships hull of the ships, conducts underwater detection with a camera around the ship
to regularly clean the bottom of the ship, and continues to promote projects
The construction and operation of Based on the MARPOL Anti-pollution Convention and the relevant laws and related to marine ecological protection to practice environmental responsibilities.
ships may involve harmful waste. regulations of the flag state, CSL formulated and implemented the Waste
CSL abides by the ship recycling re- Management Plan, requiring garbage to be classified, processed, stored,
quirements of the Hong Kong Inter- incinerated and disposed of according to relevant regulations, and requiring
national Convention for the Safe and managers to train crew members on the collection, disposal and storage of ship
Environmentally Sound Recycling of garbage to avoid pollution caused by ship waste.
Ships (HKC) and the European Union Case Protecting the Blue Whales
Ship Recycling Regulation (EU-SRR) , CSL sets up proper waste disposal facilities on board, such as incinerators, food
and formulates the Inventory of Haz- disposers and garbage mashers, to dispose of different categories of waste. If the
ardous Materials (IHM) that identifies garbage is disposed of through incineration, crushing, grinding and compaction, CSL complies with the request of National Oceanic and Atmospheric
all dangerous and potentially dan- the disposal record must include the date, time, ship position (latitude and Administration (NOAA), the U.S. Coast Guard (USCG) and the U.S.
gerous materials on board to reduce longitude) at the beginning and end of incineration, the classification of the Environmental Protection Agency (EPA) for voluntary vessel deceleration
the adverse impact of ship recycling incinerated garbage, and the estimated amount of each category of incinerated (VSR) in San Francisco and Southern California, USA, and issues a
on the environment, health, and garbage. Throughout the garbage storage period, CSL cleans and disinfects the document reminding all vessels over 300 gross tons to decelerate to
safety. CSL will present the certifica- ships regularly, equips them with fire-fighting equipment, strengthens garbage less than 10 knots when passing through the designated voluntary
tion when selling off its ships to pro- management and inspection, and appoints qualified ship pollutant receiving VSR area, at the same time strengthening supervision and guidance in
mote responsible ship recycling, and companies to transfer the garbage away from the ships after the ship berth at the daily operations to prevent whale injury or death caused by shipping.
also adopt the concepts of Life Cycle port. The initiative helps protect whales and reduce fuel use and regional
Assessment (LCA) in the planning greenhouse gas emissions.
and manufacturing of new ships to CSL regularly offers training for crew members on the Waste Management Plan
reduce the impact of ship decommis- and the use of pollution prevention equipment to minimize the harm of ship
sioning on the environment. garbage by implementing the Garbage Management Plan and using garbage
disposal equipment on ships. At the same time, CSL carries out self-inspection
of pollution prevention multiple times and inspects the sulfur oxide emission,
power equipment usage, fuel garbage, domestic garbage, household garbage
and dangerous goods management to prevent all sorts of pollution incidents and
violations of disposal.
27
Delivering Value to
the Employees
COSCO SHIPPING Lines adheres to the people-oriented
principle in enriching the talent pool of the shipping
industry. In 2022, based on the talent development
plan, the Company further promoted the reform of the
human resources system, established and improved the
incentive mechanism for attracting, cultivating, using
and retaining talents. The Company strengthened the
team's capacity building and talent training, to continu-
ously improve the vision and expertise of talents and
empower the talent pool of the shipping industry.
◉ Recruitment Compliance
◉ Promotion and Development
◉ Protection of Rights and Interests
◉ Employee Communication
2022 Sustainability Report Foreword Sustainable Development Delivering Value to Delivering Value Delivering Value to Delivering Value Appendix
Governance the Environment to the Employees Marine Transportation to the Society
Recruitment Compliance
Recruitment Compliance
Attaching great importance to building a talent places where it operates and prohibits child la- with equal employment opportunities. Re- By the end of the Reporting Period
team, the Company continuously looks for bor and forced labor. By continuously upgrading gardless of color, nationality, race, age, gender,
talents in the industry through on-campus and the human resources management system and religious beliefs or physical defects, any form of
off-campus recruitments both online and offline, refining the guidelines, the Company ensures discrimination or unfair treatment due to any
adhering to a fair, transparent, and equal prin-
ciple. The Company actively recruits graduates
compliant employment and legal dismissal of
employees. If any child labor or forced labor
non-work-related factor is prohibited. The Com-
pany provides jobs to retired soldiers and fire-
17,118
and attracts a group of outstanding students to is found, the Company will address the illegal fighters to give them a diversified platform and the total number of employees of
join the shipping industry through campus and employment according to local laws and regula- career development possibilities. The Company the Company
corporate publicity campaigns. For example, we tions. Meanwhile, the Company is committed to also takes care of people with disabilities, guar-
actively participated in the online job fair for the promoting legal employment among partners antees various benefits and salaries for disabled
transportation industry organized by Shanghai and suppliers, requiring them to sign contracts employees, and helps them explore their career
International Shipping Center, attracting nearly with clauses prohibiting child labor and forced development and positioning.
10,000 applicants. At the same time, to meet the
needs of digitalization and supply chain devel-
labor. During the Reporting Period, there has
been no case of child labor and forced labor in By the end of the Reporting Period, the total 787
opment, we actively engaged in the headhunt- the Company. number of employees of the Company was The total number of new employees
ing of high-end talents. 17,118. The total number of new employees reached
Based on the principle of equal recruitment, the reached 787, and a total of 547 employees re-
COSCO SHIPPING Lines strictly abides by the Company has been constantly building a diver- signed, with a turnover rate of 3.62%.
local employment laws and regulations in the sified and inclusive team to provide employees
29
Promotion and Development
Promotion and Development Employee Training
Ensuring employees' all-round promotion and development is an important condition to improve Attaching importance to the continuous learn-
employees' enthusiasm, initiative and creativity. In 2022, the Company implemented corporate actions ing and development of employees, the Com-
in terms of optimizing assessment and promotion system, and upgrading training programs, etc. pany formulates an all-round training system
Through objective and fair selection and customized training programs, employees were encouraged to to provide customized training programs for
further improve themselves, broadening their horizons and enhancing their competencies. employees of all ranks. In order to meet the
self-improvement needs of employees, in 2022,
the Company further optimized the training pro-
gram of management trainee, strengthened the
building of the talent team, and enhanced the
Assessment Optimization all-round ability of employees and the corporate
strength in the shipping industry.
In order to broaden the development channels same time, for employees who have made spe-
for employees' career and personal develop- cial contributions, the Company also provides
ment, the Company comprehensively guaran- exceptional promotion channels, giving positive
tees the growth of outstanding employees from incentives to outstanding employees to ensure The courses are planned with differ-
its system and action. high-quality development of talents in the ship- ent share of general ability, expertise
ping industry. and leadership for personnel of dif-
In terms of employee assessment, the Compa- ferent ranks. Four major talent devel-
ny continuously optimizes the Administrative Meanwhile, COSCO SHIPPING Lines further opment training camps like Sky Blue
Measures for Staff Assessment at Headquarters revised the stock option incentive plan, which and Sea Blue are designed.
(Trial Version), and conducts annual assess- is aimed at senior managers, as well as key
ment based on performance and competency managers and technical backbone who have
according to the principle of "objective, fair, and a direct impact on the Company's operating
quantitative". Apart from the assessment, the performance and sustainable development. In
Company provides training courses for employ- 2022, a total of 462 employees met the vesting Competency enhancement trainings
ees to improve their overall abilities. conditions. for young employees are held to help
them boost personal efficiency.
In terms of employee promotion, the Company
further refined the Management Measures for
Business Positions and Ranks at Headquarters
to ensure the promotion and development of
outstanding employees. Adhering to the prin- Workplace Image Webinar is launched
ciple of outstanding performance, meritocracy,
and fulfillment of potential to the full, the Com-
462 for the improvement of personal pro-
fessional ability.
pany emphasizes on cultivating outstanding employees met the vesting conditions
young employees by selecting the best in a
democratic, open and competitive way. At the
Main Content of the Company's Training
30
Promotion and Development
Case "Sky Blue & Sea Blue" Talent Development Training Camp
In November 2022, COSCO Shipping Lines launched the "Sky Blue & Sea Blue"
Talent Development Training Camp for 49 young managers. Focusing on the
emerging trend and tasks in the digital transformation of container shipping
supply chain, the Camp covered how to strengthen the quality and capacity-
building to serve the transformation and development of the Company.
The two sessions of training reinforced the awareness of digital supply

chain transformation for middle and first-line managers and improved
team management and leadership. Through analyzing the problems of
communication and team management encountered in practice, the trainees
developed responses to facilitate the transformation of digital supply chain in
container transportation.
"Sky Blue & Sea Blue"–Talent Development Training Camp
In 2022
with a total of
501,777 hours 15,123

the total training hours of the
Company's employees were employees received training
31
Protection of Rights and Interests
Protection of Rights Employee Benefits

and Interests
The Company attaches great importance to employee benefits. According to the national and regional regulations, the Company added multiple benefits in
2022 to fully meet the needs of employees.
Regarding talents as the driving force for
long-term development, the Company truly
safeguards the rights and interests of employees ● asic social insurance premiums are paid in strict accordance with the national standards. Additional supplementary
B
through various channels such as the Trade medical insurance is paid for employees. An enterprise annuity system has been established.
Union and Workers' Congresses, optimizes the Insurance urchased traffic accident insurance and employer liability insurance for all employees at headquarter, as well as
P
welfare and assistance for employees, provides
●
overseas employer liability insurance for expatriate employees to fully protect employees' rights and interest through a
all-round protection, and effectively serves the
sophisticated insurance benefits.
various needs of employees.
Holiday ● stablished a sound paid annual leave system, and the leave days are proportionate to the accumulated length of
E
service.
Physical ● ased on the principle of "safety, economy, effectiveness and unity" and employee satisfaction, provided physical
B
Examination examination for all employees according to their age, gender and other factors.
● P
aid monthly health expenses for eligible female employees, and offered rental subsidies to employees who had not
Subsidy
registered their residence in Shanghai.
● C
ontinue to improve the environment and services of the "Mummy Hut" to provide more convenient and caring services
Female for every mother. The " Mummy Hut" from COSCO Shipping Lines was recognized as a "Five-star Mummy Hut of the
Shanghai Trade Union".
Employee Benefits
32
Protection of Rights and Interests
Labor Rights and Interests Employee Assistance
The Company is highly attentive to the rights joint efforts of shore-based authority and ships, In order to help every employee with difficulties,
and interests of workers, and provides effec- making every effort to ensure that the crew can the Company has established the Three-level Assis- Case Helping Employees
tive protection through Workers' Congress change shifts in time and go home smoothly. tance Mechanism for Employees in Need. COSCO with Difficulties
and Collective Agreement . The Company SHIPPING Lines has formulated the Management
Measures for Employees in Difficulties. When em-
protects the legitimate rights and interests of In 2022, COSCO SHIPPING Lines further op- The trade unions at all levels of the Company
ployees encounter difficulties, the Trade Union of
employees at work, prohibits any form of dis- timized the Administrative Regulations on their unit will send them care and assistance at the made every effort to support employees in
crimination and harassment in the workplace Strengthening the Membership and Service first opportunity, solve the problem within their difficulties, equipped employees on duty with
to create a healthy and safe working environ- of Labor Dispatchers of COSCO SHIPPING units, and escalate and help them according to daily necessities and emergency medicines,
ment for employees. Lines Trade Union and the Implementation the level of difficulties and assistance needed. The and constantly sorted out qualified suppliers
Opinions on the Treatment and Rest of COSCO Company strives to help them as much as possible to provide necessities for workers. The trade
At the same time, the Company pays close at- SHIPPING Lines Workers (for Trial), to take all through the three-level assistance mechanism, clear unions also solved the special needs for retired
their worries so that the employees in difficulties
tention to and continuously monitors the crew's employees, including labor dispatchers, in the workers, such as offering medical treatment
remain focused on the production and operation.
working hours on board, prohibits long work- Trade Union and safeguard their legitimate and hourly housekeepers, and made every
At the same time, the Company sets aside funds for
ing hours, and protects the crew's rights and rights and interests. Meanwhile, the Trade employees with difficulties with strict management effort to help employees in Shanghai and
interests such as rest, shift and holidays. The Union signed the Collective Contract with the to ensure that the funds are used for its specified families of overseas employees solve the
Company takes the mental health of the crew enterprise as the workers' representative and purpose only. The Company paid close attention to difficulties.
seriously. When it is difficult to change shifts, established a labor dispute mediation system. the needs of employees in challenging times and
the Company actively coordinates with subsid- When employee encounters labor disputes, carried out various caring activities for employees Mobilizing resources at the first time, the trade
iaries and ports to arrange many crew shifts at the Trade Union will mediate and provide le- to ensure their physical and mental health and their unions of the Company distributed solatium
overseas ports through close cooperation and gal services. safety, sending warmth to employees in time.
in cash and in-kind worth 5.757 million yuan,
delivered 4,719 packages of vegetable and
meat to employees.
Case Adhere and Improve the System of Workers' Congress Case The Trade Union of Xiamen
Branch Cared for Employees
In January 2022, COSCO SHIPPING Lines held the first session of the second Workers' Congress, hearing
and deliberating the Work Report of the General Manager, as well as deliberating and adopting the
In August 2022, the Trade Union of Xiamen Branch
5.757million yuan
made every effort to ensure the safety and care for the trade unions of the Company distributed
Implementation Opinions on the Treatment and Rest of COSCO SHIPPING Lines Workers (for Trial)
employees in various aspects when facing a heat- solatium in cash and in-kind worth
and other matters that need to be reviewed by the Workers' Congress. The 17 proposals of worker
wave for days.
representatives collected were sorted and all the responsible departments (units) were coordinated for
serious research and handling. 94% of worker representatives were satisfied with the proposal handling,
The leaders of COSCO SHIPPING Lines paid visits
and 6% rated it as basically satisfied.
In addition, COSCO SHIPPING Lines held a staff meeting to introduce the organizational structure
to the families of quarantined employees, and
communicated with employees every Thursday to
understand their needs and make adjustments on
4,719
optimization scheme, the background and subsequent considerations of the reform to all employees. delivered packages of vegetable and meat to
the fruits, food, and drinks delivery, so that the em-
On the meeting, the Organizational Structure Optimization Scheme of the Shipping Business was employees
ployees deeply felt the warmth from the Company.
deliberated and adopted.
33
Employee Communication
To understand the needs of employees, the Company has set up diversified communication channels Through diverse team building activities, the Company enables employees to stay active and fit,
to address employees' confusions, solve their problems and empower them to grow rapidly. The enhances team communication and cohesion, and deepens employees' sense of belonging. At the
Company communicates internal information to employees through the Office Automation System (OA) same time, team building activities provide a platform for employees to relieve stress and communicate
and Company mailbox and receives feedback on employee needs through informal discussions. in depth, laying the foundation for a positive development of the enterprise.
Case Young Employee Communication at the Shanghai Branch Case The Shanghai Branch Carried Out Team Building Activities
At the meeting, 15 young employee representatives from various departments and outlets To appreciate nature and enhance cohesion,
shared their study and work experience since they joined the Company. The meeting t h e S h a n g h a i B ra n c h o rga n i ze d a tea m
encouraged young employees to exchange their understanding of future career planning building activity in Beihu Wetland Park. Sports
and business integrity, so as to allow them to adapt to the team as soon as possible. While activities such as ping-pong relay race and
discussing career development and growth path, this meeting also guided young employees balloon defense race were carried out in the
to strengthen their beliefs. form of group competition, which improved
the collaboration and collective honor of
employees.
Shanghai Branch Team Building Activities
Case Young Employee Communication at Qingdao Branch
To further care for the growth of young employees, build effective communication channels,
and spark enthusiasm, Qingdao Branch held a meeting with young employees in February
2022, and representatives of young employees from the headquarters attended the meeting.
With face-to-face communication, the leaders listened to the voices of young employees, and
learned about their opinions and suggestions on the Company's development.
Young employees talked about their personal growth and work experience, and put forward
positive opinions and suggestions around corporate culture and team-building. After listening
to each young employee's talk, the leaders had an in-depth communication with young
employees.
34
Case The Trade Union of Dalian Branch Launched an All-staff Fitness Activity
To enrich the cultural life of employees, enhance the solidarity and cohesion, and promote
high-quality development, the Trade Union of Dalian Branch carried out a wide range of all-
staff fitness activities.
In October 2022, the Sales Department cooperated with the Freight Management
Department and the Documentation Department to carry out a team building activity.
This activity enhanced the communication among the three departments and showed the
enthusiasm of employees in the Dalian Branch. After the activity, the employees stated that
they would try their best to contribute to the team, and gain new achievements based on a
new starting point.
The Trade Union of Dalian Branch Launched an All-staff Fitness Activity
35
气候变化
Delivering Value to
Marine Transportation
We deliver value through shipping. COSCO SHIPPING
Lines, as the world's leading integrated container shipping
service provider dedicated to the global shipping busi-
ness, guarantees the safety of customers' business deliv-
ery and the health and safety of employees, while acting
with professionalism at all times. CSL also constantly
updates and improves services according to customer
needs to realize the sustainable delivery of shipping value.
◉ Safety in Shipping
◉ Occupational Health and Safety
◉ Improvement of Services-Elena
36
Safety in Shipping
Safety in Shipping
COSCO SHIPPING Lines is well aware of the particularity and high risk nature of ocean shipping, and Strictly abiding by the laws and regulations related to shipping safety, CSL has formulated the Measures
always insists on keeping the safety bottom line in shipping to achieve steady development and for the Administration of Safety in Production, the Comprehensive Emergency Plan for Production
complete transportation entrusted by the customers. CSL has fully implemented a responsibility system Safety and other related internal policies, and amended the Regulations on the Management and
for production safety, strictly implements various safety management mechanisms, and effectively Operation of Ship Armed Escort Suppliers and the Regulations on the Administration of Safety
utilizes safety management system to ensure the safe operation of ships especially with regards to Education and Training during the Reporting Period to further regulate important matters in safety
accident and emergency management, anti-piracy attack, extreme weather prevention and dangerous production activities and set out responsibilities of relevant departments.
goods management.
Accident and Emergency Management
2022 is the last year of the "Three-Year Initiative" of safety and emergency management.
for special rectification of safety production. Ac-
The Company instructed land-based units to focus on high-risk are-
cording to the stage requirements of the "Three- COSCO SHIPPING Lines insists on controlling risks System
as and operations, revise and improve relevant system documents
Year Initiative", CSL compiled safety management at the source and strives to eliminate safety acci- Construction and establish a long-term mechanism for production safety.
guidelines, refined the implementation plan of dents from the source. CSL strengthens accident
various activities, strengthened organizational risk management and control from four aspects:
work and responsibility implementation, and con- system construction, risk identification, safety in-
tinued to provide strong supervision and guidance spection, and system implementation, and effec- The Company requires "One card for each matter" in respect of
to ensure the effective and in-depth promotion of tively improves the strength and coverage of safety risk control of hazard and has made operation risk warning cards
the activities in the "Year of Consolidation and Im- process control. During the Reporting Period, CSL Risk Identi-
for special and critical operations of vessels and key equipment
provement" and to continuously improve the level had no safety production accidents. fication
involved, so as to ensure the concept of prior management of
safety to the front line of vessel operations.
The Company has developed annual safety inspection plans and set
up special inspection teams in the ports for domestic and foreign
Safety
trade to inspect as much as possible, and to regularly check and
Inspection
control risks in key areas such as personnel, operations, periods and
waters with high risks.
Strengthen pre-service skill training and onboard tutoring for captain

Safety
pilot, and continue to enhance the safety risk awareness and naviga-
Training
tional safety and security capabilities of the navigation crew.
37
Safety in Shipping
CSL also adopted a number of emergency man- In addition, CSL conducts various safety drills to enhance employees' production safety awareness and Counter-Piracy Efforts
agement optimization measures and invited skills. During the Reporting Period, COSCO SHIPPING Lines and its 16 subordinate units and 177 ships
industry experts to revise the emergency manage- successfully completed the emergency exercise plan and held 372 drills, including 252 comprehensive drills
ment plan during the Reporting Period to continu- and 120 special drills (including 9 joint drills between ship and shore), with a total of 10,092 participants. Pirate attacks are a great threat to the life and
ously improve emergency management. safety of crew members and the economic ben-
efits of shipping companies. In order to ensure
safe shipping, shipping companies need to
Improvement of
372 10,092 incorporate counter-piracy measures into their
daily safety management. Based on the basic
principle of "Prevention first, constant vigilance,
emergency management held drills participants focusing on actual situation, preparing as soon
as possible, acting quickly and keeping it out of
the ship", CSL has formulated and implemented
◉R
evised emergency management plan,
a counter-piracy policy to carry out supervision,
set up a risk assessment team led by inspection, warning and guidance of the daily
Joint drills Special drills
deputy general manager of safety, counter-piracy work, and conducts regular train-
and established an emergency expert ing for crew members to counter pirate attacks.
group
CSL regularly analyzes the regions with frequent
◉D
amage or destruction to a vessel by ◉E
mergency fire drills in and around piracy incidents around the world, conducts
◉ I dentified hazards in the production an attack from the sea while at an- warehouses and yards research on the high-risk areas of piracy accord-
process of land-based units and ves- chor or berthing ing to the latest international situation and tries
sels, and determined each initial risk ◉S
pecial industry bulk operation ons- to avoid pirate areas when designing routes
level and control risk level on a case- ◉N
atural disaster/vessel stranding / ite cargo fire/petrol station vehicle wherever possible. If it is inevitable to enter an
by-case basis according to the com- grounding fire extinguishing drill area where piracy frequently occurs, CSL will
pany's Safety Production Risk Control employ a third-party armed escort team to track
Regulations and risk matrix assess- ◉C
yber attack on a vessel ◉C
PR, high rise building fire escape, and monitor its own vessels 24 hours a day. The
ment method spontaneous combustion of coal and captain will deploy all the crew members and
◉S
hip and shore dangerous goods fire other safety drills clarify the anti-piracy alarm signals and con-
emergency joint drills tacts throughout the ship. CSL's vessels are also
◉F
irefighting evacuation drills equipped with safety cabins as places to take
◉D
eveloped onsite responding plans for refuge and retreat. In case of emergency, CSL
◉O
verboard/injury drills
7 onshore emergencies and 18 vessel will ensure the personal safety and basic living
◉T
yphoon and flood prevention and
emergencies needs of the crew.
◉B
omb search at sea joint drills control
38
Safety in Shipping
Extreme Weather Response
Global climate change makes the effects of extreme weather long-lasting, widespread, intense and hazardous, posing a serious threat to the safety of employees and property on vessels and in terminals. CSL has
always adhered to the principle of "Prevention first, combining prevention with resistance, taking early shelter when appropriate and allowing for unforeseen circumstances" to keep the safety bottom line with the
joint effort of the vessels and the terminals.
Extreme Weather Risk

Case Responding to Typhoon Muifa and Getting Prepared for Typhoon and Flood
Preparedness
On September 11th-12th, 2022, Muifa, the 12 th In terms of site safety, COSCO SHIPPING Lines
◉C
ollaborates with three weather routing
typhoon of the year, hit the coastlines of China. reinforced containers against typhoon, focusing
companies and invested massive funds
COSCO SHIPPING Lines attaches great importance on binding and fastening of containers in the yard,
to provide long-, medium- and short-
to typhoon prevention and combating. It adhered strengthened gantry cranes and stacking ma-
term weather analysis, warning and
to the policy of "Prevention first, taking early shelter chines against wind, and cut off electricity to out-
forecast for vessels and shore before
when appropriate and allowing for unforeseen door temporary power lines in the container repair
sailing and at sea.
circumstances", carried out analysis and made area to stop the operation. Typhoon prevention
prompt decisions, activated emergency plan for and flood control measures were taken for 4 ware-
◉D
evelops a 24-hour duty system and typhoon prevention and combating immediately, houses in the storage area, including measures
provides severe weather warnings. formulated detailed prevention plan taking into to prevent wind and rain for goods piled outside
account typhoon dynamics, port information, route the warehouses. All types of special vehicles in
schedules, vessel conditions, loading conditions the warehouse area were properly parked and all
◉E
stablishes
a tracking and monitoring and other information and went all out to do all the warehouse doors were closed when strong winds
mechanism for key vessels. preparations for flood and typhoon prevention. and heavy rains came.
In terms of management and scheduling, COSCO COSCO SHIPPING Lines also strengthened its 24-
◉A
rranges port agents to provide weath-
SHIPPING Lines promptly passed anti-typhoon hour watch and dispatch, closely tracked port
er warning and emergency support
instructions to all vessels, kept a close eye on arrivals and departures and mapped out arriving
functions in the event of sudden ad-
typhoon movements and the position and con- vessels and vessels taking shelter during typhoon.
verse weather events.
dition of vessels, arranged position adjustment It kept in constant contact with shipping compa-
in time, actively contacted terminals to arrange nies and terminals, making full preparations for
◉D
evelops detailed typhoon and wave berthing plans, balanced loading and unloading vessels arriving in terminals after typhoon, and
area shelting standards to guide requirements of vessels at terminals, and reduced reserved inventory of empty containers one week
sailing vessels and vessels in port on vessel turnaround time by seeking dock operation in advance to ensure sooth picking up of empty
response measures against wind. resources to ensure that vessels could leave the containers during typhoon, thus minimizing the
dock to seek shelter during typhoon. impact caused by typhoon.
39
Safety in Shipping
Dangerous Goods Management

Case Supporting the Transport of Lithium Batteries in the New Energy Sector
Due to the significant impact of dangerous goods on safe shipping and ecological environment, the The batteries of electric vehicles are dangerous first batch of pure electric vehicle export pro-
entire transportation process should be managed by strict regulations to ensure the safety of goods goods, and therefore face various different and ject to report details of the goods, customers'
transportation and reduce the risks and losses caused by dangerous goods accidents. CSL abides more stringent safety requirements in export stock preparation and delivery requirements,
by the classification and operation procedures of dangerous goods stipulated in the International control than those of ordinary vehicles. During and to confirm regulations and requirements
Maritime Dangerous Goods Code formulated by the International Maritime Organization, and complies the Reporting Period, COSCO SHIPPING Lines of each aspect of customs for electric vehicles
with environmental protection laws and regulations such as the Yangtze River Protection Law of the held 6 seminars on lithium battery energy stor- as a new type of cargo, including issues such
People's Republic of China to fulfill its responsibility of preventing and controlling the transportation of age containers with customers, relevant mari- as how to determine the export commodity
dangerous goods, prevent and control the occurrence of maritime transportation of dangerous goods, time safety administrations and classification declaration code and coordination of shipside
and protect the marine environment and fishery economy. societies to discuss ways to carry this new type loading of dangerous goods. Under the coor-
of cargo and to actively support transport of dination of COSCO SHIPPING Lines, the export
lithium batteries in the new energy sector. declaration, shipside loading and customs
clearance for the first batch of 101 new energy
In October, 2022, Wuhan Branch took the initi- electric vehicles were completed within two
ative to contact customs before the start of the days.
◉C
heck whether the ◉A
fter confirming the ◉D
uring transporta-
products supplied dangerous goods catego- tion or stacking, the
by the customer are ry or UN number, the Company ensures
dangerous goods Company classifies the that dangerous
according to the type goods as either prohibit- goods comply with
of dangerous goods ed or restricted according relevant handling
booking applied for to the relevant policy on and segregation
by the customer. dangerous goods and requirements.
confirms the transport
route.
Whole Process Management of Dangerous Goods Transportation
At COSCO SHIPPING Lines, the dangerous goods handling team has established a three-level dangerous CSL also strengthened joint prevention and control with the competent authorities, cooperated to
goods transportation working group consisting of COSCO SHIPPING Lines, Shanghai Ocean Shipping develop the Company's dangerous goods audit management system, and made full use of the Internet
Co., Ltd. and vessels according to the requirements of division of responsibilities and approval process. of Things and big data technologies to further promote joint prevention and control cooperation
The working group organizes regular assessment and conscientiously performs its duty of accepting and taking IBOX as an entry point. COSCO SHIPPING Lines along with OOIL have successfully developed
approving dangerous goods throughout the transportation from the time a container is booked by the the Company's dangerous goods audit management (DGAM) platform to promote the systematic and
customer to the time they are shipped out. COSCO SHIPPING Lines has conducted business knowledge digital transformation of dangerous goods transportation operation management. By continuously
updating training for employees related to dangerous goods in the system, strengthened daily management strengthening the prevention and control of misreporting and concealment of dangerous goods, CSL
and operation of dangerous goods to ensure the safety of approval and transportation of dangerous goods. has enhanced disciplinary action against non-compliant customers. During the Reporting Period, a
During the Reporting Period, COSCO SHIPPING Lines dynamically revised and improved its dangerous goods total of 25 cases of concealment and misreporting of goods were detected, and 7 parties responsible for
acceptance policy and carried 5 types of new dangerous goods with UN numbers from 8 new customers. malicious concealment of dangerous goods were added to the Company's blacklist.
40
Occupational Health and Safety

The health and safety of employees is an impor-
tant driving force to promote the sustainable de-
velopment of shipping. CSL has always adhered to
the concept of "Employee Safety First", conscien- Governance Strategy
tiously fulfills its responsibility for occupational
health and safety, strictly implements occupation-
al health and safety laws, regulations and systems, ◉C
OSCO Shipping Lines has established the Occupational ◉ I mproving
safety risk management: identify occupational
regularly reviews health and safety policies and Health and Safety Management Regulations to supervise, health hazards, provide health checks and improve
performance of employees in all operating sites, inspect and guide the occupational health and safety work emergency management
and provides comprehensive and well-established of all units, including all departments, affiliated units, and ◉E
nhancing occupational safety awareness: strengthen red line
safety training to guarantee employees' occupa- contractors awareness and responsibility awareness
tional health and safety. CSL has also incorporated ◉S
afety
production indicators incorporated into executive ◉S
trengthening safety management construction: strengthen
occupational health and safety requirements into compensation system construction and team building
supplier evaluation process. COSCO SHIPPING
Lines has passed ISO 45001 (Occupational Health ◉O
ccupational safety training: incorporate occupational safety
and Safety Management) certification to create a education and training into annual development planning
safe working environment for the employees.

Management Risk Management Metrics and Targets
CSL strictly carries out occupational health and
safety management in terms of governance, ◉C
arry out annual mapping and assessment of major risk ◉G
enerally safe and stable, with no occupational diseases,
strategy, risk management, metrics and targets sources, occupational health environmental health risks, major fatalities or mass casualties or serious injuries and less
monitoring, and comprehensively implements operational risks, etc., and combine major safety risk and minor injuries for which liability is incurred
occupational health and safety management from hidden danger investigation and remediation with the Thee- ◉C
ontinuous improvement to conditions in the workplace
the perspectives of enhancing occupational safety year Initiative for special rectification of safety production
◉1
00% training rate for new employees and crew members
awareness, strengthening safety management ◉D
evelop and carry out annual safety inspection plans
construction, deepening occupational safety training and 100% rectification rate for hidden peril of accidents
◉D
evelop a 2022 hazard and risk factor control list for ◉S
ignificant
and strengthening safety risk management. In 2022, improvement to awareness and ability of
CSL continued to carry out activities such as the operational environment employees to prevent occupational injuries
Occupational Disease Prevention and Control Law
Awareness Week to implement safety responsibilities
and promote safety development.
41
Occupational Health and Safety Training
CSL continues to carry out occupational health training to promote awareness of work safety among
every employee. During the Reporting Period, safety certificate training, special training for crew Safe Production Month Activities Carried out Successfully
Case
members, training for new employees and training seminars were carried out according to the safety
production situation of the Company.
In June 2022, COSCO SHIPPING Lines kicked SHIPPING Lines continued to implement the
Safety Training Highlights off this year's Safe Production Month activities safety requirements of "Five Precautions"
with the theme of "Abide by Work Safety for all vessels, and insisted on "Taking
Law and Be the Focal Point". Through safety care of minor matters, preventing major
Three-level safety training for more than
220 participants
activities such as safe production warning and
education activities, safety hazard investigation
events, finding hidden dangers and filling
shortcomings" to ensure the safe and efficient
670 COSCO Shipping Lines' Regular Meeting of
and management activities and safety
emergency drills held on many vessels, COSCO
operation of vessels and the completion of
customer transportation consignments.
new employees in the system Captains, Chief Enginners and Chief Offices of
Vessels Training Course (Phase I) attended by
over
more than 420

in-person and online interviews and trainings for Continued online vessel positions special training
part-time vessel occupational health and safety releasing a total of
supervisors
A total of
198
tiered and classified course materials and providing
10 online support, combining teaching, management

and production
training courses on navigation safety, labor safety,
equipment safety, production safety law, mooring
safety for bulk carriers, green and intelligent
shipping and vessel safety, tutoring for captains A total of
of vessels managing their own loading, container
stacking and customs declaration, and crew
business training, etc. 87
persons in charge and safety managers were
with 512 participants

arranged to attend safety certificate training in
various locations throughout the year Fan Ya Ning De Ship's "Safe Production Month" Activities
42
Improvement of Services
Focusing on the strategic goal of becoming a

"customer-oriented, value-leading and world- Case Upgrade of Syncon Hub Digital Intelligent Supply Chain Platform Case WMS Warehouse
class integrated service provider of container Management System
ecosystem", the Company puts customer at the
center and align with customer needs. In 2022, COSCO SHIPPING Lines further launched AI intelligent customer service to In 2022, the Company developed a targeted
optimized the Syncon Hub digital intelligent provide 7*24-hour online professional services WMS Warehouse Management System to
supply chain platform, and comprehensively for massive repetitive inquiries. It can also support the digitalization of multi types
Digital Transformation optimized and upgraded the four service provide customers with more differentiated of warehouses and the entire business
channels into four product segments: ocean and personalized services through constantly process. The platform also provides a
freight, road freight, customs declaration upgraded self-learning professional service visual booking platform for suppliers
The Company's digitalization strategy is based
and warehousing and distribution, marking solutions, to help customers overcome and carriers, which dynamically displays
on the thorough integration of information tech-
the official launch of the Company's digital challenges. warehouse operations and provides real-
nology and shipping logistics, with "Technology
supply chain services on the e-commerce time business monitoring and risk warning.
+ Scenario" as the core. The Company contin-
platform Syncon Hub.
ues to promote digitalization and intelligence
around the industrial chain, applying blockchain Jiaxing Warehouse further shortens the
and Internet of Things technologies to shipping. In 2022, Syncon Hub started dedicated physical distance from warehouse to
operations on road freight and customs container by replacing warehouse with
declaration, which used to be part of the containers and Electronic Data Interchange
Digital Intelligence Empowered extended services of ocean freight, enabling (EDI), so that the storage plan and logistics
Supply Chain Syncon Hub to provide full end-to-end data can be accessed with one click.
services for e-commerce customers. The Customers will have the perfect experience
optimization and upgrade of the Syncon of reduced cost and increased efficiency
Focusing on the concept of "Digital Intelligence
Hub platform enables the whole process of through digital supply chain.
Empowerment", the Company has formulated a
specific business operations, such as orders,
digital supply chain development plan to provide
bookings, documents and invoices, to be
customers with one-stop supply chain logistics
controlled at anytime and anywhere, and
solutions through the digital collaboration of intel-
realizes the dynamic and real-time tracking
ligent product portfolios and delivery plans. COS-
of goods around the world. The Syncon Hub
CO SHIPPING Lines has also actively experimented
platform also provides customers with one-
with the combination of "Digital Intelligence +
stop supply chain logistics solutions to meet
Customization" services in its customization and
their different needs and enables personalized Syncon Hub Digital Intelligent Supply Chain
whole-process services to the customers, and im- Platform
combination of products. The platform further WMS Warehouse Management System
proved the ease of use, flexibility and intelligence
of supply chain products and management based
on visualization platform, Syncon Hub, WMS and
other channels.
43
Digital Intelligence Improves Customer Experience

Case Intelligent Customer Case IQAX eB/L Blockchain
Service Platform Electronic Bill of Lading
In 2022, the Company further innovated and upgraded various intelligent service software and systems,
empowering customer services with digital intelligence through intelligent cold chain platform, The intelligent customer service platform IQAX eB/L operates on the Global Shipping
paperless documents, paperless transactions, blockchain electronic bills of lading and other platforms, was officially launched on January 1, 2022. It Business Network (GSBN) platform and
and further upgraded customer experience through digitalization, intelligence and paperless services. covers offline customer service of domestic provides a single source for the authentic-
and foreign trade, online customer service ity, security and traceability of bills of lad-
of domestic and foreign trade e-commerce ing. It allows all parties involved in interna-
and online service of Pan-Asia e-commerce. tional carriage of cargo by sea to manage
A brand-new online service channel was bills of lading completely online, simplifies
added to meet customers' diversified ac- the operation, reduces the cost and im-
cess needs. Yuanbao, an intelligent service proves the efficiency. It also allows users to
Case MY REEFER Intelligent Cold Chain Service Platform
robot, was launched at the same time to issue, circulate and exchange bills of lading
offer 7*24-hour online automatic response, online and to view the real-time status of
In 2022, My REEFER, a new one-stop platform PTI technology to generate a suitability curve which enhanced consistency of Company trade and cargo transportation throughout
for intelligent reefer containers was launched of the equipment through algorithms to image in customer service. the shipment. In addition, the electronic
by the Company. The platform combines ensure that the intelligent reefer containers delivery of bills of lading is simple and fast,
IoT technology with AI algorithm to provide are in the best working condition. The annual As of the end of 2022 which shortens the circulation of tradition-
customers with a digital solution for full emission reduction effect is equivalent to the al paper bills of lading by 3-5 days, greatly
visibility and control and autonomous
management of cold chain through real-
carbon emissions absorbed by 454 hectares
of forest in one year.
76.1% reducing the time cost of both parties.
time control of the status of more than 40,000 The Company has successfully certified
the automatic processing rate of the
intelligent reefer containers scattered around the whole process of the product togeth-
intelligent robot accounted for online
the world. er with a number of banks and verified
services the expected effect of the product in vari-
The Company's fleet of intelligent reefer ous scenarios of multiple customers. The
containers covers more than 400 routes in Company is looking forward to bringing
more than 140 countries around the world.
With the help of Internet of Things technology,
115.9% more value-added services to customers.
customized AI algorithm and rich data the use of the platform’s online
interfaces, real-time information is transmitted channels by customers increased by
back to MY REEFER platform every 15 minutes
to provide early warning when the container
temperature is not up to standard and to
enable paperless customs declaration of
11.6% The Company will continue to thoroughly integrate
customer needs with digital transformation,
cold processing data. This further improves while the hotline service channels keep improving digital operation capability
customs clearance efficiency for importers increased by aiming for efficiency, strive to implement the
and provides a 7*24-hour service for cargo Intelligent Cold Chain Platform
digital transformation strategy, and continue to
transportation. The Company also uses Smart The global service response speed and
build a global digital supply chain operation and
service level were further enhanced.
investment platform around container shipping.
44
Direct Service
The Company further improves the end-to-end The Company will further expand the digital
container integrated logistics service network Case COSCO SHIPPING Lines' End-to-end Transportation Solution supply chain extended business, keep up with
and continuously improves service quality to Helps Customers Ship Their Vehicles customers' needs, upgrade end-to-end services,
optimize customer experience. In 2022, an end- strive to provide customers with more solid and
to-end transportation scheme for whole vehicles reliable logistics support to reflect the value
and a global diversified end-to-end logistics solu- A customer of COSCO SHIPPING Lines en- the unloading and customs clearance pro-
countered great challenges in transportation cedures were completed in accordance with advantages of the Company's brand image as a
tion were launched for the Company's container pioneer in the smooth flow of goods for various
transportation business to provide diversified and because of the large volume, irregular size and the established operational procedures and
difficulty in disassembling and assembling of the unpacking operation was carried out the customers.
personalized end-to-end supply chain solutions
for more customers. the vehicles. The different types of vehicles next morning under the close coordination
also added difficulty to the shipment. COSCO of COSCO Shipping Ports' business team and
SHIPPING Lines used an innovative end-to- customer project team and local inspection
end transportation solution to help the cus- agency.
tomer shipping its vehicles.
Case The First Europe-Middle
The successful implementation of this project
East End-to-End Project COSCO SHIPPING Lines used whole-vehicle alleviated the difficulty of vehicle transporta-
packing bracket for the first time to overcome tion by catering to the transportation needs of
For a globally diversified and comprehen- the technical problems of vehicle packing and the customers for multiple types of vehicles.
sive logistics solution, the CSP Abu Dhabi unpacking, and coordinated local customs, This signifies the Company's ability to provide
Terminal cooperated with COSCO SHIP- maritime safety administration and other au- full-chain service for transportation of vehicles
PING Lines Spain to successfully complete thorities to successfully complete the packing and to offer customers with a wider range of
the first batch of container booking for and operation at the site. After arriving at the port, end-to-end logistics transportation solutions.
provide door-to-door delivery service to
the client after 1.5 years of joint efforts.
The services of the whole project include

ocean freight booking, road freight to the
loading port, customs clearance, port op-
eration at the loading port, port operation
and customs clearance at the port of dis- 智能冷链平台
charge, and delivery to the steel plant. This
cooperation has successfully opened up a
logistics service channel for the customer
from Spain to Khalifa Port in the United
Arab Emirates, laying a foundation for fur-
ther developing logistics extension services
for exporting products from Khalifa Port to
the rest of the world.
End-to-end Transportation Solution Helps Customers to Ship Their Vehicles
45
Privacy Protection
The Company attaches importance to privacy protection and internal data security protection, and
strictly protects customer privacy. In order to strengthen the protection of customers' privacy and
safety, the Company has been implementing the Cybersecurity Law of the People's Republic of China
Case The South China Branch Carried out Cyber Security Awareness Training
for employees at all levels through in-depth study of the information protection concept. The Company
also conducts cyber security awareness trainings such as the Safe Production Month to further improve
privacy protection and data security protection. In July, 2022, in order to improve employees' awareness of cyber security, the South China Branch
held a training on cyber information security management, which was attended by staff from the
headquarters and various directly affiliated units via video connection.
During the training session, COSCO SHIPPING Lines explained in detail the basic rules that must be
observed in cyber security. The session also covered PC terminal standardization, password strategy,
terminal management, web page security and other content around precautions to be taken during
the 2022 cyber security attack and defense drill and the current challenges in cyber security.
Through this training, the employees' awareness of cyber security was further enhanced and their
ability to identify risks was improved to protect the Company's high-quality development.
Case Dalian Branch Carried out Special Training on Digital Security
As the cornerstone of digital development in the future, cyber security is the driving force of digital
transformation and upgrading. COSCO SHIPPING Lines provided trainings to its employees accord-
ing to the Management Measures for Cyber Security and based on the Company's network structure.
By analyzing specific practical cases from multiple perspectives, such as password security, phishing
emails, APT attacks and emergency handling methods, the training further strengthened the aware-
ness of information and cyber security of all employees in Dalian Branch and laid a solid foundation
for improving the overall cyber security guarantee ability and protection level of Dalian Branch.
Through training, employees had a deeper understanding of the importance of the safe operation of
basic information network and essential systems. This provides an extra layer of protection to cyber
and security.
46
Customer Experience
Adhering to the customer-oriented concept, the Company always puts customer experience in the first place. It strives to provide more customized services in addition to standard services, which means offering the right products
at the right time and in the right scenario. The Company will integrate its businesses to achieve the self-operation in the whole process of road freight, air freight, towing, customs declaration, warehousing and distribution, so as to
better serve customers and enhance their experience throughout the process.
Customer Service Process Upgrade Customized Services
The Company attaches great importance to the distri- Through customized solutions, the Company provides tailored services and high-standard experience for customers
bution of service information. In 2022, in response to of all sizes.
the lack of transparency and timeliness in the release of
service information, the Company further standardized
information that's to be distributed, confirmed channels
for information distribution, and established an informa-
Case COSCO SHIPPING Lines Provided Customized Cold Chain
tion distribution mechanism from information collec-
tion, circulation, review to distribution. COSCO SHIPPING Smart Solution for Customer Importing Coconuts
Lines also formulated the process of distributing service
information, and officially launched the subscription and
In 2022, the use of reefer containers for coconut
push functions of its official website to achieve standard,
imported from Southeast Asia to Nansha Steve-
timely and accurate distribution of service information
doring Terminal were more popular than in pre-
and enhance customer service experience.
vious years. COSCO SHIPPING Lines learned that
customers' previous refrigerated road transport
route was blocked and that the normal production
and sales of some manufacturers were affected.
Case Optimized Booking
Confirmation Process In order to address customers' pain points, COSCO
SHIPPING Lines tailored a set of road-to-sea solu-
In 2022, COSCO SHIPPING Lines used digital tion for manufacturers, which enabled imported
means to achieve the circulation and tracking of goods to be transported directly from Nansha
space requirements during the booking stage, to Haikou through the domestic IC25 route. The COSCO SHIPPING Lines Provided Customized
improve the operational efficiency of booking trailers in Nansha and Haikou were coordinated Cold Chain Smart Solutions for Customer
confirmation; COSCO SHIPPING Lines also uti- to control the time and cost of container change. Importing Coconuts
lizes systematic means to achieve unified main- The first batch of 9 reefer containers have been
tenance and management of critical service successfully delivered.
deadlines. At the same time, COSCO SHIPPING The first batch of
Lines achieved centralized configuration man- The transformation of the cold chain from road
agement of booking confirmation templates to sea brought into play the advantages of high
through the system, improving the consistency
and accuracy of booking confirmation docu-
ments; As of the end of 2022, the unified config-
efficiency, fewer links and lower cost, and has been
highly recognized by customers for its stable and
controllable logistics channels, seamless connection
9
uration and centralized management of global throughout the process and customized services. reefer containers have been successfully
booking confirmations has been completed. delivered
47
Supporting Small and Medium-Sized Enterprises

Case Customized Service of Dalian Branch Solved Customer's Problems
In 2022, the Company made every effort to provide reliable service and convenient and flexible operations
for small and medium-sized customers. The Company effectively guaranteed the smooth logistics chain for
Dalian Branch set up a special service team for China National Petroleum Corporation (CNPC)
its small and medium-sized customers through comprehensive global shipping network layout, strength
projects, which is responsible for all aspects of CNPC's entire supply chain, connecting up-
in digitalization of shipping and advantages in end-to-end full supply chain management. The Company
stream and downstream in time, ensuring that the customer' special needs can be responded to
further assumed corporate responsibility by offering service fee reduction for small and medium-sized
promptly, and proposing optimal solutions in time.
enterprises with difficulty in booking flights to help them overcome difficulties.
After Chinese New Year in 2022, a customer of CNPC was unable to deliver products as planned
due to shortage of raw materials, and the trade was greatly affected. Dalian Branch immediately
activated exclusive customized service process for CNPC and inquired about the cargo dynam-
ics through the system and contacted the upper and lower ends of the business. In view of the
backlog of goods and limited operation capacity during Chinese New Year, the Branch actively
Case The Shanghai Branch Provided Dedicated Services to Solve
communicated with the terminal to track the operation of the terminal in real time, and the
Problems for Small and Medium-sized Customers
goods were picked up and delivered to the customer's warehouse in time to ensure the produc-
tion of the factory.
In 2022, a customer in Shanghai faced a serious shipping problem: the domestic inventory was
COSCO SHIPPING Lines helped the customer to overcome the difficulties through personalized overstocked but the order could not be delivered in time. The customer urgently sought support and
and customized services, which was well received by the customer. help from the Shanghai Branch.
After gaining a better understanding of the practical difficulties of the customer, COSCO SHIPPING
Lines urgently coordinated with the free-trade zone to sign contracts promptly in accordance with
the trade zone's policy guidelines and negotiated with the customer for a reasonable freight rate.
The Branch also actively communicated with relevant ports for shipping space support based on the
actual needs of the customer to deliver products to ensure stable shipping space support and ship-
ment.
Since signing the contract, with the full cooperation and support of all parties, the urgent needs of
the customer have been catered for. COSCO SHIPPING Lines has put into practice the service concept
of "customer-oriented", helping a wide range of direct customers to resolve supply chain disruptions.
Customized Service of Dalian Branch Solved Customer's Problems
48
Customer Satisfaction
The Company attaches great importance to cus- During the Reporting Period, the Company further optimized the customer complaint system and handling process. Complaints are investigated and evidence
tomer satisfaction and regularly conducts customer is collected by the responsible department to determine the authenticity of the complaint, the facts, the main responsible party, the degree of negligence
satisfaction surveys to gain an in-depth under- and the damage caused or potentially caused. The customer service hotline acceptance forms are collected and used to carry out follow-ups. In the event of
standing of customer expectations and suggestions. a complaint, the Company will immediately activate the response process and reply on the same day or within the promised time frame, and keep a detailed
The Company also comprehensively improves cus- record of all customer complaints and their outcomes.
tomer experience and satisfaction through various
customized improvement measures.
In 2022, COSCO SHIPPING Lines continued to

conduct global customer satisfaction survey. The Return visit and
Judging the
survey was conducted in the form of an online type of case confirm the pro-
questionnaire, which was distributed to customers cessing results and
around the world through the satisfaction survey acceptance pro-
platform developed by COSCO SHIPPING Lines. A
Preliminary Investigate, col- cess satisfaction
After obtaining the investi-
total of 2,324 questionnaires were collected and
judgment gation and handling results, lect evidence and
the results showed that the global overall customer make a judgment on the type organize
satisfaction rate of COSCO SHIPPING Lines in 2022 of the case, and issue a "cus- After receiving the "customer
tomer service hotline accept- service hotline acceptance
was 91.89, an increase of 0.11 compared with 2021. form" fed back by the re-
ance form" to the responsible
According to the content of The responsible department sponsible department, the
department for the cases
92 customer complaints, make is responsible for investigat- customer service department
identified as complaints
preliminary judgments and ing, collecting evidence and is responsible for returning
91.9 91.89 promptly contact the respon- sorting out the content of the visits to the complaining cus-
91.78 sible department for accept- complaint to determine the tomers, confirming the han-
91.8 ance authenticity of the custom- dling results and satisfaction
er's complaint, the facts, the with the acceptance process
91.7 main responsible party, the with the customers
degree of negligence and the
91.6 resulting or potential losses
91.5
91.4
91.3
91.2
Customer complaint handling process
91.1
91
2021 2022
During the Reporting Period, the Company received 201 customer complaints and all of them were handled according to the agreed process.
Increase of Customer Satisfaction Rate for
COSCO Shipping Lines
49
气候变化
Delivering Value to
the Society
The Company actively fulfills corporate responsibilities,
shares social values, and passes on love and care. With
business expansion and corporate development, the
Company always pays attention to improving the supply
chain management system, creating a sustainable indus-
trial chain, and driving suppliers to achieve common
prosperity. At the same time, the Company regards partic-
ipating in public welfare as an important corporate task,
and carries out long-term actions in charity and rural
revitalization to promote social well-being.
◉ Sustainable Supply Chain
◉ Prosperous Economy
◉ Rural Revitalization
◉ Community Involvement
◉ Volunteering
50
Sustainable Supply Chain
Sustainable Supply Chain Supplier Assessment Supplier Communication
The Company adheres to the principles of openness, fairness and justice in practicing responsible For existing suppliers, the Company conducts an- The Company is committed to establishing a good
procurement and implementing strict supplier management mechanism with constant improvements nual assessment and rating, and scores the perfor- communication with suppliers. Through com-
to promote the sustainable development of the whole industrial chain and jointly create social value. mance of suppliers. For suppliers with low scores munication channels such as supplier meetings,
and poor performance, the Company puts forward interviews and qualification audits, the Company
targeted improvement suggestions. The supplier is dedicated to solving problems for suppliers,
assessment incorporates multiple dimensions conveying quality requirements, and improving
Supplier Management Measures to comprehensively consider the performance suppliers' service and safety awareness. The Com-
of suppliers in corporate governance, employee pany regularly collects feedback from suppliers to
safety, customer service, business ethics and en- improve efficiency for future cooperation.
vironmental protection, so as to ensure that the
In order to achieve sustainable supply chain management, the Company revised and strictly followed the
suppliers of the Company have sufficient technical
Regulations on Supplier Management Measures, Procurement Management Measures, Transportation
expertise and scale, management capabilities, as Suppliers by region
Procurement and Supplier Management of COSCO SHIPPING Lines, further strengthening the review of
well as excellent product and service quality.
supplier access and existing suppliers.
Unit：number
Supplier Admittance Supplier Risk Assessment

10,866
The Company has always maintained strict admittance requirements for suppliers, formulated the supplier To reduce supply chain risks and strengthen the digi-
access process, and designed the supplier access criteria. In the process of supplier selection, not only are tal transformation capability, the Company regularly
the scale and qualifications of suppliers considered, but also the environmental and social performance identifies, tracks, and evaluates potential risks in
of suppliers in daily operations. In terms of the social risks, the Company ensures that suppliers are able to the supply chain, and proposes countermeasures.
identify and control their own occupational health and safety hazards and implement effective prevention In terms of risk monitoring, the Company contin-
and management measures for potential major hazards. In terms of environmental risks, the Company uously optimized the supply-side network effect,
requires suppliers to effectively identify and update important environmental risk factors, and strives to built a supply chain management platform by using
control their impact on the environment. digital systems, leveraged the leading technological 2,832
advantages of IRIS4 system, and realized end-to-end
The Company holds its suppliers to high standards, and is devoted to selecting suppliers that are consistent supplier data interaction, delivering a transparent,
with the Company's values and requires all suppliers to sign the Commitment Letter of Anti-Commercial safe and stable supplier management.
Bribery for Suppliers. By the end of the Reporting Period, all suppliers had signed the Commitment
Letter. The Company also requires new suppliers who are not selected by bidding to complete the Self- The Company strictly selects qualified suppliers from Suppliers in Mainland China
examination Questionnaire of Supplier's Social Standards Compliance, which clearly requires suppliers to the supplier pool during procurement, gives priority Suppliers outside Mainland China
make commitments in social responsibility, employee health and work safety. In addition, the Company to suppliers with long cooperation and good credit, (including Hong Kong, Macao and
conducted spot checks on suppliers at the end of the year, and summarized and gave feedback on their to reduce risks from the source and safeguard its Taiwan)
performance. customers and business.
51
Prosperous Economy
Prosperous Economy
Mutual Assistance between Enterprises
The Company focuses on industry cooperation, mutual assistance in enterprise operation, and promotion
of regional economic development. Relying on a solid business foundation and transportation capacity, the Case Facilitating the Export
Company continues to address the challenges in daily operations for small- and medium-sized enterprises of Agricultural Products
(SMEs), and provides assistance to enterprises in need domestically and abroad. In the first half of 2022, due
to port congestion and shortage of operators, the ship turnover efficiency was affected with ships failing In May, 2022, in order to help with the
to sail in time, resulting in compromised market capacity. In order to solve the problems of shipping space recovery of agricultural products export
shortage, service degradation, and cargo detention, the Company has formulated support policies for SMEs. in Guangdong province, the South China
In the process of customer communication, the Company insists on providing meticulous services from the Branch organized a trip to the processing
perspective of SMEs and actively seeks solutions for customers to safeguard the development of SMEs. center of an agricultural product enterprise
in Gaoming, Foshan, and packed a total
of 45 tons of fruits into containers, which
were then shipped to the United States af-
ter the on-site inspection and quarantine
Case Facilitating SMEs to Unblock the Logistics Channel at the Gaoming Office, Foshan Customs.
The export of agricultural products was
successfully completed, which solved the
overstock problem for the enterprises.
In January, 2022, local SMEs in Mengyin County, Linyi City, Shandong Province, suffered from con-
gestion and hard-to-find shipping space in local ports. Due to the blockage of shipping routes, local
Adhering to the concept of an integral
SMEs in Mengyin County are facing the severe challenges in exporting goods, and the accumulation
upstream and downstream industrial
of unsold goods would have directly led to the industrial chain disruption in Mengyin County.
chain, and acting on the belief of creat-
ing a good industrial environment, the
In order to address the challenges of export blockage and products overstocking, the Qingdao Company unblocks routes for enterpris-
Branch leveraged the special freight service of container transportation for small- and medium-sized es in need to help them break through
customers to formulate targeted assistance measures for enterprises, which ensured the delivery of difficulties. Through stable channels and
goods for local enterprises and played an important supporting role in the economic development efficient transportation, we have succes-
of Mengyin old district, as the local industrial chain is the lifeline of thousands of farmers and an im- sively signed annual transportation con-
portant component of rural revitalization. The Company demonstrated its corporate responsibility tracts with a number of key agricultural
at a critical moment, creating a solid foundation for the future cooperation between the two parties. enterprises to provide them with safe
and reliable transportation services.
52
Rural Revitalization/Community Involvement
Rural Revitalization Community Involvement

Empowering rural development and narrowing From July 20th to 26th, the Company actively re- The Company has been devoted to integrating
the gap between urban and rural areas is a great sponded to the activity of Promoting Agriculture charity into its corporate operation for a long time.
goal for the Company to fulfill its social respon- through Consumption. Branches, unions at all The Company is well aware that the support of all
sibilities. As a responsible enterprise, the Com-
pany strives to give full play to its advantages
levels and employees all actively participated in
the activity through Ocean1. The Company en-
sectors of society is indispensable to the develop-
ment of enterprises, so the Company gives back
CNY 31.51 million
and make use of natural conditions such as con- courages using green and healthy specialty agri- to the society through community investment and During the Reporting Period, the Company's
venient transportation and abundant channels cultural products as gifting options for employees' pass on love and warmth to the people in need. charitable and other donations totaled
to help rural revitalization, enhance community families and friends, and provides employees with
resilience, and assist remote and underdevel- various specialty foods from the areas in need in
oped areas to grow and develop together. the corporate canteen, allowing employees to eat Charitable Donation
healthily while expanding the sales of agricultural
products in the areas in need.
In 2022, the volunteers of the Company went deep into the remote areas and abroad for charitable
activities, assuming the responsibilities to help the children in need and accompanied them on the
road of their growth.
Case Special Promoting Agriculture Event through the Ocean1 Platform in 2022
Case The South China Branch Held Charitable Activities for Rural Primary
Ocean1 is a multi-user online mall under COSCO Shipping Lines. In the agriculture assistance activity
held in 2022, the Company leveraged this digital platform to assist the online promotion of products School Students in Yongde County
in poverty-stricken counties and help promote agriculture through consumption. The agricultural
and livestock products sold in this activity mainly came from 4 poverty-stricken counties assisted by On May 31st, South China Branch went to the Central Primary School of Daxueshan Township, Yongde
COSCO Shipping Lines, namely Yongde County in Yunnan, Anhua County in Hunan, Yuanling County County, Yunnan Province, and sent Skyworth multimedia classroom display equipment to 1,248 rural
in Hunan and Luolong County in Tibet, with a total of 105 specialty agricultural products. children. A total of 1,248 children's paintings of wishes from the Daxueshan Township Central Kinder-
garten and Wanxiao Primary School were collected and showcased through an art exhibition for their
In addition to creating the Agricultural Assistance Zone on Ocean1, the website is further devel- wishes to be claimed and realized. The event was warmly responded to by all employees, and more
oped to embed the activity entrance link of the Agriculture Week into the relevant pages of the than 80% of them actively participated in the exhibition and all of the paintings were claimed.
website, broadened the sales channels of agricultural products, and combined digitalization
with traditional agricultural products to help all specialty agricultural products in poverty-strick- In addition to claiming paintings of wishes, the South China Branch also donated multimedia
en counties become accessible to the public. classroom display equipment for three other rural primary schools in Yongde County to improve
their teaching quality.
105 1,248 rural children
specialty agricultural products sent Skyworth multimedia classroom display equipment to
53
Community Involvement
Education Assistance
Case Boundless Care, Infinite Love: Children's Care in Kangjian Hospital
To help rural children grow up with love, the Company always pays attention to the education of
With the theme of "Boundless Care, Infinite Love", COSCO SHIPPING Lines carried out a well- children in impoverished areas, with a focus on improving local educational infrastructure and
planned caring activity for children in the Hongkou Huixin Children's Health Hospital, and sent supplementing educational resources.
daily necessities and food to the Hospital. In the follow-up, COSCO SHIPPING Lines will continue
to help children who need care and cultivation for their healthy growth, jointly building a
harmonious and loving growth atmosphere.
Case Paving Dreams with Education: Donation of School Supplies
In August 2022, a representative team of COSCO SHIPPING Lines in Hunan donated school
The Company not only helps the disadvantaged in China, but also uses its own international influence supplies to the students of Jundaping No.9 School in Muxi Village. This donation not only
to spread love internationally, and provides public resources to areas in need through public welfare provided material support but also motivated the children. Their smiles and excitement when
activities. they received the gifts warmed the hearts of the team representatives.
Case Donation for Flood Alleviation in Malaysia
In 2022, the Malaysian Peninsula was hit by continuous rainstorms, which caused serious floods
in many places in Malaysia. Upon learning about the disaster, the Southeast Asia Branch, together
with major chambers of commerce and

embassies, actively participated in the
disaster relief activities, and donated
lifeboats built with the raised money to
help local people in Malaysia get out of
the predicament and reduce losses. The
Malaysian government was very grateful
to COSCO Shipping Lines for its good
deeds and expressed its appreciation
to COSCO SHIPPING Lines for its long-
term service in Malaysia and its active
participation in public welfare activities.
54
Volunteering
Volunteering
Taking a boat of care we sail with great love. In 2022, the Company continued to provide volunteer services and showcased its corporate image. While business
leaders carry out various charitable activities, employees of the Company also actively fulfill their social responsibilities in local communities, participate in
various voluntary activities, and contribute to building a better society. As of the end of the Reporting Period, the hours of employee volunteering activities of
the Company reached 894 hours.
Case Low-Carbon Travel for a Beautiful Environment: the Qingdao Branch Promotes Sustainable Development
In July 2022, in order to strengthen the concept of green and sustainable development, employees of the Qingdao Branch carried out service activities
to promote a low-carbon life and environmental protection to local community residents. In addition, the volunteers cleaned the public areas and
picked up garbage to set an example for the community.
This activity aimed to improve employee awareness and understanding of the necessity and urgency of sustainable development. At the same time,
the positive actions of employees have also raised the community's environmental awareness, allowed more people to learn about the importance
and urgency of a low-carbon life, and made contributions to creating a beautiful environment.
Case The Computer Center Continues with "Smurf" Volunteer Service
The Company has always been adhering to the spirit of "dedication, friendship, mutual assistance and progress" to encourage employees to participate
in volunteer activities. During the Reporting Period, the Computer Center of COSCO Shipping Lines and Weifang Community Volunteer Center in
Pudong New Area signed an agreement for long-term regional co-construction. The employees of COSCO Shipping Lines formed a volunteer service
team to carry out traffic rules education for non-motor vehicles and pedestrians who violated traffic regulations on the morning of working days to
avoid violations of traffic regulations.
The patient talks and enthusiastic service attitude of the volunteers helped the masses avoid a series of violations and were well received. This
volunteer activity not only raised the safety awareness of the public, reduced the uncivilized behavior on road, but also contributed to creating a
civilized, safe, harmonious and orderly living environment.
55
Appendix
Laws, regulations and internal policies
Laws and regulations Internal policies
Labor Law of the People's Republic of China Regulations on Reporting, Investigation and Employee management program Regulations on Transportation Procurement and
Handling of Production Safety Accidents Supplier Management of COSCO SHIPPING Lines
Labor Contract Law of the People's Republic of China Staff recruitment management methods (Trial)
International Convention on the Control and Administrative Regulations on Strengthening the
Trade Union Law of the People's Republic of China Management of Ships' Ballast Water and Sediments Measures for the Administration of Safety Production Membership and Service of Labor Dispatchers of
COSCO SHIPPING Lines
Environmental Protection Law of the People's Republic Law of the People's Republic of China on Water Comprehensive Emergency Plan for Safety Production
of China Pollution Prevention and Control Implementation Opinions on the Rest Cure of Employees
Safety Education and Training Management Regulations of COSCO SHIPPING Lines (for Trial Implementation)
Law of the People's Republic of China on Prevention Law of the People's Republic of China of Yangtze
and Control of Environmental Pollution by Solid Waste River Protection Law Waste Management Plan Collective Contracts
Marine Environmental Protection Law of the People's Regulations on Prevention and Control of Marine Oil Wastewater Treatment Management Regulations Supplier Management Measures
Republic of China Environment Pollution by Ships
Emergency Plan for Oil Pollution on Ships Procurement Management Measures
Implementation Plan of Air Pollutant Emission Control International Convention on the Prevention of
Zones for Ships Instructions for Management of Ship Ballast Water
Pollution from Ships
International Convention for the Prevention of Pollution Ballast Water Management Plan
Basic Norms of Enterprise Internal Control
from Ships
Dangerous Goods Safety Management Regulations
United Nations Convention against Corruption
Hong Kong International Convention for the Safe and
Anti-monopoly Compliance Management Manual
Environmentally Sound Recycling of Ships Foreign Corrupt Practices Act (FCPA)
Measures for the Administration of Anti-monopoly

The European Union (EU) Ship Recycling Regulation Criminal Law of the People's Republic of China
Compliance
International Safety Management Rules Anti-Monopoly Law of the People's Republic of China
Anti-monopoly Emergency Response Plan
Safety Production Law of the People's Republic of China Cybersecurity Law of the People's Republic of China
Anti-monopoly Compliance Guidelines
International Maritime Dangerous Goods (IMDG)
56
Sustainability performance data
Environmental data
Indicators Unit 2020 2021 2022
Indirect energy use Purchased power 1,000 kWh 4,686 4,853 4,479
Intensity of indirect energy use 1,000 kWh/million RMB revenue 0.04 0.02 0.02
Gasoline Tons 17.09 20.00 16.10
Fuel oil (heavy oil) Tons 4,927,176 5,143,933 4,736,250
High-sulfur oil Tons 295,099 488,206 458,455
Direct energy use Low-sulfur oil Tons 4,632,077 4,655,727 4,277,794
Diesel oil (light oil) Tons 186,501 202,075 237,910
Natural gas Cubic meters 282,193 371,205 361,535
Total 1,000 kWh 59,671,470 67,496,969 57,879,336
Intensity of direct energy use 1,000 kWh/million RMB revenue 532.13 302.48 224.56
Freshwater consumption Tons / 276,641 240,584
Water for production Seawater desalination capacity Tons 124,756 136,213 123,293
Total consumption of water for production Tons 244,785 412,854 363,877
Domestic water Tons Tons 33,622 36,073 32,247
Total water consumption Tons Tons 278,407 448,927 396,124
Intensity of Water
Tons/ million RMB of operating income Tons/ million RMB of operating income 2.48 2.01 1.54
resources use
57
Scope I greenhouse gas emissions 15,930,457 16,654,623 15,181,289
Greenhouse gas Scope II greenhouse gas emissions 3,789 3,925 2,555

Tons of carbon dioxide equivalent
emissions1
Total greenhouse gas emissions
15,934,246 16,658,547 15,183,844
(category I + category II)
Tons of carbon dioxide equivalent/million RMB of

Intensity of greenhouse gas emission 142.10 74.65 58.91
operating income
Nitrogen oxides 413,567 389,808 357,992
Exhaust gas2 Sulphur oxides Tons 285,219 116,053 226,298
Particulate matter / 35,132 32,088
Production wastewater - treated effluent

Tons 12,602 17,283 10,883
discharge
Wastewater
Domestic wastewater Tons 30,260 32,466 29,022
Total number of Hazardous waste Tons 2,856 3,789 3,755
Intensity of hazardous waste Kilogram/million RMB revenue 0.03 1.54 0.01
Waste Number of dangerous goods containers Standard container 180,832 201,093 217,249
Total number of harmless waste Tons 184,800 264,250 264,250
Intensity of harmless waste Kilogram/million RMB revenue 1.65 1.18 1.03
Lubricating oil Tons Tons 15,531 26,478 26,485
The emission factor of greenhouse gases is mainly based on the Third IMO Greenhouse Gas Study 2014, and the emission of electricity consumption refers to the emission factor of each country or power company.
1
The calculation method of exhaust gas mainly refers to the method of the Clean Transport Working Group (CCWG).
2
58
Sustainability performance data
Social data
Regular employees People 15,133 15,262 15,123

Total number of people
Labor dispatcher People 1,947 1,897 1,995
Composition of Regular Employees
Total number of regular male employees People 8,525 8,627 8,402

By gender
Total number of regular female employees People 6,608 6,635 6,721
Regular employee at the age of 30 or below People 1,976 1,771 2,626
Regular employees between 30 and 50 (not

By age People 10,837 11,026 9,875
including the age of 30 and 50)
Regular employees at the age of 50 or above People 2,320 2,465 2,622
Full-time People 17,080 15,262 15,123

By type of employment
(full-time or part-time)
Part-time People 0 0 0
Regular employees in mainland China People 9,973 10,003 10,020
By region Regular employees in Hong Kong People 194 193 183
Overseas regular employees People 4,966 5,066 4,920
Management People 4893 484 542

By rank
Ordinary employee People 14,644 14,778 14,581
Composition of New Employees
Total number of new male employees People 267 349 336

By gender
Total number of new female employees People 255 360 451
3
The number of management personnel in 2020 includes department level and above employees
59

Total number of new employees aged 30 or below People 348 367 542
Total number of new employees aged between 30

By age People 168 280 242
and 50 (excluding 30 and 50)
Total number of new employees aged 50 or above People 6 62 3
Total number of new employees in mainland China People 132 293 200
By region
Total number of new employees overseas People 390 416 587
Employee Turnover
Total turnover % 2.42 3.01 3.62
Total number of employees leaving office People 366 460 547
Regular male employee People 214 286 255

Number of employees leaving
office by gender
Regular female employees People 152 174 292
Regular male employee % 1.56 3.32 3.03

Employee turnover by sex
Regular female employees % 2.30 2.62 4.34
Regular employees in mainland China People 107 143 78

Number of employees leaving
Regular employees in Hong Kong People 13 7 10
office by region
Overseas regular employees People 246 310 459
Regular employees in mainland China % 1.07 1.43 0.78
Employee turnover by region Regular employees in Hong Kong, China % 6.70 3.63 5.46
Overseas regular employees % 4.95 6.12 9.22
Regular employee aged 30 or below People 72 78 330
Number of employees leaving Regular employees aged between 30 and 50

People 254 345 198
office by age (excluding 30 and 50)
Regular employees aged of 50 or above People 40 37 19
60

Regular employee aged 30 or below % 3.64 4.40 12.57
Employee turnover by age Regular employees aged between 30 and 50

% 2.34 3.13 2.01
group (excluding 30 and 50)
Regular employee aged 50 or above % 1.72 1.50 0.72
Employee Injuries and Deaths
Number of work-related deaths People 0 0 0

Total number of deaths
Proportion of work-related deaths ‰ 0 0 0
Number of accidents causing work-related injuries Case 5 0 0
Work injury Number of work-related injuries People 5 0 0
Work injury rate per thousand people ‰ 0.3 0 0
Number of hold-up working days

Total number of hold-up working days Days 150 0 0
due to work-related injuries
Employee Training
Total number of trainees People 12,501 15,262 15,123
Number of employees receiving training by gender
Number of trained male employees People 7,169 8,627 8,402
Number of trained female employees People 5,332 6,635 6,721
Percentage of trained employees by gender 4
Percentage of trained male employees % 57.35 56.53 55.56
Percentage of trained female employees % 42.65 43.47 44.44
Number of trained employees by rank
Management People 2,508 484 542
4
Percentage of employees trained by gender=Number of employees trained by gender/ Total number of employees receiving training
61
Ordinary employees People 9,993 14,778 14,581
Number of trained employees by rank5
Percentage of trained management % 20.06 3.17 3.58
Percentage of trained ordinary employees % 79.94 96.83 96.42
Total training hours by gender
Male Hours 23,719 108,611 277,208
Female Hours 17,154 76,458 224,569
Average number of training hours for employees by gender
Male Hours 2.78 12.6 32.99
Female Hours 2.60 11.5 33.41
Total number of training hours by rank
Management Hours 14,298 18,786 79,591
Ordinary employees Hours 26,575 166,283 422,186
Average number of training hours by rank
Management Hours 29.24 38.8 146.85
Ordinary employees Hours 1.81 11.3 28.95
Total training hours by training category
Anti-Corruption and Integrity Hours / 766 14,740
Safety and Environmental Protection Hours / 21,864 105,860
Others Hours / 162,439 381,177
62
Suppliers
Suppliers in mainland China 10,032 11,032 10,866

Number of suppliers (By region)
Suppliers outside mainland China (including Hong
2,741 2,839 2,832
Kong, Macao and Taiwan)
Employee Complaints
Number of complaints No. 6 238 201

Number of complaints received
about products and services
Complaints handling ratio % 100% 100% 100%
Number of concluded
corruption lawsuits filed against 0 0 0
the Company or its employees
Community investment
Expenditure on participating
in or organizing community or 100,000 yuan 2,022 28,262 3,151
public welfare activities
Total number of people

participating in community or Person-time 317 800 284
Total number of hours of

participation in community or Hours 78 138 894
5
Percentage of Trained Employees by Employee Rank=Number of Trained Employees at Management or Regular Level/Total Number of Trained Employees
63
Reporting Indicator Guidelines – HKEX

Contents of Environmental, Social and Governance Reporting Guidelines
Environmental, social and governance areas and general disclosure and key performance indicators (KPI) Chapter
Environmental
Related to emissions of exhaust gases and greenhouse gases, pollution discharge to water and land, generation of harmful
and harmless wastes: Delivering Value to the Environment: Energy Use and
General disclosure
(a) Policies; Emission Reduction
(b) Data on compliance with laws and regulations that have a significant impact on the issuer.
A1.1 Types of emissions and data on emission Sustainability performance data
A1.2 Total emissions and density of greenhouse gases Sustainability performance data
A1: Emissions
A1.3 Total amount and density of hazardous wastes produced Sustainability performance data
A1.4 Total amount and density of harmless waste generated Sustainability performance data
Delivering Value to the Environment: Energy Use and

A1.5 Description of emission targets set and steps taken to achieve them
Emission Reduction
Description of disposal methods of hazardous and harmless wastes, and that of waste reduction objectives set and steps Delivering Value to the Environment: Solid Waste
A1.6
taken to achieve these objectives Management
Delivering Value to the Environment: Water Resources

General disclosure Policies for efficient use of resources (including energy, water and other raw materials).
and Waste Water Management/ Solid Waste Management
A2.1 Total consumption and density of direct and/or indirect energy sources (such as electricity, gas or oil) by type Sustainability performance data
A2.2 Total water consumption and density Sustainability performance data
A2: Resources use Delivering Value to the Environment: Water Resources

A2.3 Description of energy efficiency goals set and steps taken to achieve these goals
and Waste Water Management/ Solid Waste Management
Description any problems in obtaining suitable water sources, the water efficiency targets set and steps taken to achieve Delivering Value to the Environment: Water Resources
A2.4
these targets and Waste Water Management
COSCO SHIPPING Lines' operations do not involve

A2.5 Total amount of packaging materials used for finished products and their share per production unit
packaging materials use
A3: Environment and Delivering Value to the Environment: Energy Use and
General disclosure Policies to reduce the significant impact of the issuer on the environment and natural resources
natural resources Emission Reduction
Description of the significant impact of business activities on the environment and natural resources, and the actions taken Delivering Value to the Environment: Energy Use and
A3.1
to manage the impact Emission Reduction
General disclosure Policies for identifying and responding to significant climate-related issues that have and may have an impact on the issuer Delivering Value to the Environment: Climate Change
A4: Climate change
A4.1 Description of major climate-related issues that have and may have an impact on the issuer, and the response actions Delivering Value to the Environment: Climate Change
64
Society
Related to salary, dismissal and recruitment, promotion, working hours, leave, equal opportunities, diversity, anti-
discrimination and other welfare and benefits: Delivering Value to the Employees: Recruitment
General disclosure
(a) Policies; Compliance
(b) Compliance with relevant laws and regulations that have a significant impact on the issuer.
B1: Employee
B1.1 Total number of employees by sex, employment type, age group and region Sustainability performance data
B1.2 Employee turnover by sex, age group and region Sustainability performance data
Related to the provision of safe working environment and the protection of employees
Delivering Value in Shipping：Occupational Health and
General disclosure (a) Policies;
Safety
B2: Health and Safety B2.1 Number and rate of work-related deaths in each of the past three years (including the reporting year) Sustainability performance data
B2.2 Number of hold-up working days due to work-related injuries Sustainability performance data
B2.3 Description of the occupational health and safety measures adopted, and the relevant implementation and monitoring methods Delivering Value in Shipping：Occupational Health and Safety
General disclosure Policies on improving employees' know-how and skills in performing their duties. Description of relevant training activities. Delivering Value in Shipping：Occupational Health and Safety
B3: Development
B3.1 Percentage of trained employees by sex and employment category Sustainability performance data
and training
B3.2 Average number of training hours per employee by sex and employee type Sustainability performance data
Related to the prevention of child labor or forced labor:

General disclosure (a) Policies; Delivering Value to the Employees: Recruitment Compliance
B4: Labor code
B4.1 Description of measures taken to review recruitment practices to avoid child labor and forced labor Delivering Value to the Employees: Recruitment Compliance
B4.2 Description of the steps taken to eliminate violations when they are found Delivering Value to the Employees: Recruitment Compliance
General disclosure Policies on managing environmental and social risks in the supply chain. Delivering Value to the Society: Sustainable Supply Chain
B5: Supply chain B5.1 Number of suppliers by region Sustainability performance data
management
Description of the practice of employing suppliers, the number of suppliers on which the practice is enforced, and the
B5.2 Delivering Value to the Society: Sustainable Supply Chain
relevant enforcement and monitoring methods
65
Description of the practices for identifying environmental and social risks at each stage of the supply chain, and the related
implementation and monitoring methods
B5: Supply chain
management
Description of the practices of promoting the use of environmentally friendly products and services during the selection of
suppliers, and the related implementation and monitoring methods
Related to the health and safety, advertising, labelling and privacy issues and remedies of the products and services
provided: Delivering Value in Shipping： Improvement of Services
General disclosure COSCO Shipping Lines' daily operations do not involve
(a) Policies;
advertising and labeling related matters
COSCO Shipping Lines mainly provides container

B6.1 Percentage of products that need to be recalled for safety and health reasons of all sold or shipped products
shipping services, and product recycling is not involved
B6: Product liability B6.2 Percentage of products that need to be recalled for safety and health reasons of all sold or shipped products Delivering Value in Shipping： Improvement of Services
There's no intellectual property-related content in COSCO

B6.3 Description of the practices related to the maintenance and protection of intellectual property rights
Shipping Lines' business currently
COSCO Shipping Lines mainly provides container services,

B6.4 Description of quality verification process and product recall procedures
not involving product recycling
B6.5 Description of consumer data protection and privacy policies, and related enforcement and monitoring methods Delivering Value in Shipping： Improvement of Services
Related to the prevention and control of bribery, extortion, fraud and money laundering:
General disclosure (a) Policies; Sustainable Development Governance: Business Ethics
B7: Anti-corruption The number of concluded corruption cases filed against the issuer or its employees during the Reporting Period and the
measures B7.1 Sustainable Development Governance: Business Ethics
results of the proceedings
B7.2 Description of preventive measures and reporting procedures, as well as related enforcement and monitoring methods Sustainable Development Governance: Business Ethics
B7.3 Description of anti-corruption training provided for directors and staff Sustainable Development Governance: Business Ethics
Policies on understanding the needs of the communities in which the Company operates through participation in
General disclosure Delivering Value to the Society: Community Involvement
community activities to ensure that the interests of the communities will be taken into account during business activities.
B8: Investment
B8.1 Areas of focus Delivering Value to the Society: Community Involvement
B8.2 Resources invested in areas of focus Delivering Value to the Society: Community Involvement
66
Reporting Indicator Guidelines – GRI

Disclosure issues/items Title of disclosure item Sections
General standards
GRI 1: Fundamentals 2021
GRI 2: General Disclosure 2021
Organizing and reporting practices
2-1 Organizational details About COSCO SHIPPING Lines
2-2 Entities included in the organization's sustainability reporting About COSCO SHIPPING Lines
2-3 Reporting Period, frequency and contact point About COSCO SHIPPING Lines
2-4 Restatements of information About COSCO SHIPPING Lines
2-5 External assurance Independent Verification Statement
Activities and works
2-6 Activities, value chain and other business relationships Sustainable Development Governance: Materiality Assessment
2-7 Employees Delivering Value to the Employees: Recruitment Compliance
2-8 Workers who are not employees Delivering Value to the Employees: Recruitment Compliance
Governance
2-9 Governance structure and composition Sustainable Development Governance: Governance Structure
2-10 Nomination and selection of the highest governance body Sustainable Development Governance: Governance Structure
2-11 Chair of the highest governance body Sustainable Development Governance: Governance Structure
2-12 Role of the highest governance body in overseeing the management of impacts Sustainable Development Governance: Governance Structure
2-13 Delegation of responsibility for managing impacts Sustainable Development Governance: Governance Structure
2-14 Role of the highest governance body in sustainability reporting Sustainable Development Governance: Governance Structure
2-16 Communication of critical concerns Sustainable Development Governance: Governance Structure
2-17 Collective knowledge of the highest governance body Sustainable Development Governance: Risk Management/ Business Ethics
67
2-18 valuation of the performance of the highest governance body Delivering Value to the Environment: Climate Change
Strategy, policies and practices
2-22 Statement on sustainable development strategy Message from the Chairman
2-23 Policy commitments Appendix：Laws, regulations and internal policies
2-24 Embedding policy commitments Sustainable Development Governance: Governance Structure
2-25 Processes to remediate negative impacts Sustainable Development Governance: Business Ethics
2-26 Mechanisms for seeking advice and raising concerns Sustainable Development Governance: Business Ethics
2-27 Compliance with laws and regulations Appendix：Laws, regulations and internal policies
2-28 Membership associations About COSCO SHIPPING Lines：International Initiatives
Stakeholder engagement
2-29 Approach to stakeholder engagement Sustainable Development Governance：Stakeholder Engagement
2-30 Collective bargaining agreements Delivering Value to the Employees：Protection of Rights and Interests
GRI3: 1Material Topics 2021
3-1 Process to determine material topics Sustainable Development Governance：Materiality Assessment
3-2 List of material topics Sustainable Development Governance：Materiality Assessment
3-3 Management of material topics Sustainable Development Governance：Materiality Assessment
GRI 201: Economic Performance 2016
201-1 Economic value directly generated and distributed About COSCO SHIPPING Lines - Economic performance
201-2 Financial impacts of climate change and other risks and opportunities Delivering Value to the Environment: Climate Change
GRI 203: Indirect Economic Impact 2016
203-1 Infrastructure investments and services supported Delivering Value to the Society: Community Involvement
203-2 Significant indirect economic impact N/A
GRI 205: Anti-Corruption 2016
205-1 Operations where corruption risk assessment has been conducted Sustainable Development Governance: Business Ethics
68
205-2 Communication and training of anti-corruption policies and procedures Sustainable Development Governance: Business Ethics
205-3 Confirmed incidents of corruption and actions taken Sustainable Development Governance: Business Ethics
GRI 206: Unfair Competitive Behavior 2016
Legal proceedings against unfair competition behavior, antitrust and anti- Sustainable Development Governance: Business Ethics
206-1
monopoly practice
Environment
GRI 302: Energy 2016
302-1 Energy consumption within the organization Delivering Value to the Environment: Energy Use and Emission Reduction
302-2 Energy consumption outside of the organization Sustainability performance data
302-3 Energy intensity Sustainability performance data
302-4 Reduce energy consumption Delivering Value to the Environment: Energy Use and Emission Reduction
302-5 Reduce the energy demand of products and services Delivering Value to the Environment: Energy Use and Emission Reduction
GRI 303: Water Resources and Sewage 2018
303-1 Interaction between organizations and water (as a shared resource) Delivering Value to the Environment: Water Resources and Waste Water Management
303-2 Management of drainage-related impacts
303-3 Water fetching Delivering Value to the Environment: Water Resources and Waste Water Management
303-4 Drainage Delivering Value to the Environment: Water Resources and Waste Water Management
303-5 Water consumption Delivering Value to the Environment: Water Resources and Waste Water Management
GRI 304: Biodiversity 2016
304-2 Significant impacts of activities, products and services on biodiversity Delivering Value to the Environment: Biodiversity
GRI 305: Emissions 2016
305-1 Direct (category 1) greenhouse gas emissions Sustainability performance data
305-2 Energy indirect (category 2) greenhouse gas emissions Sustainability performance data
305-4 Greenhouse gas emission intensity Sustainability performance data
305-7 Emissions of nitrogen oxides (NOX), sulfur oxides (SOX) and other major gases Sustainability performance data
69
GRI 306: Waste 2020
306-1
306-2 Waste generation and significant waste-related impacts Delivering Value to the Environment: Solid Waste Management
Management of impacts related to major wastes
306-3 Waste generated Delivering Value to the Environment: Solid Waste Management
GRI 308: Supplier Environmental Assessment 2016
308-1 New suppliers selected using environmental criteria Delivering Value to the Society: Sustainable Supply Chain
308-2 Negative impact of supply chain on environment and actions taken Delivering Value to the Society: Sustainable Supply Chain
Society
GRI 401: Employment 2016
401-1 New employee hires and employee turnover Delivering Value to the Employees: Recruitment Compliance
Benefits provided to full-time employees that are not provided to temporary

401-2 Delivering Value to the Employees: Protection of Rights and Interests
or part-time employees
GRI 403: Occupational Health and Safety 2018
403-1 Occupational Health and Safety Management System Delivering Value in Shipping: Occupational Health and Safety
403-2 Hazard identification, risk assessment and incident investigation Delivering Value in Shipping: Safety in Shipping
403-3 Occupational Health Services Delivering Value in Shipping: Occupational Health and Safety
Occupational Health and Safety Matters: Workers' Participation, Consultation

403-4 Delivering Value in Shipping: Occupational Health and Safety
and Communication
403-5 Occupational Health and Safety Training for Workers Delivering Value in Shipping: Occupational Health and Safety
403-6 Promoting Workers' Health Delivering Value in Shipping: Occupational Health and Safety
Prevention and mitigation of occupational health and safety impacts directly

403-7 Delivering Value in Shipping: Occupational Health and Safety
related to business relationships
403-8 Workers Applicable to Occupational Health and Safety Management System Delivering Value in Shipping: Occupational Health and Safety
403-9 Work-related injury Delivering Value in Shipping: Occupational Health and Safety
403-10 Work-related health problems Delivering Value in Shipping: Occupational Health and Safety
70

GRI 404: Training and Education 2016
404-1 Average hours of training per year per employee Delivering Value to the Employees: Promotion and Development
404-2 Programs for upgrading employee skills and transition assistance programs Delivering Value to the Employees: Promotion and Development
Percentage of employees receiving regular performance and career
404-3 Delivering Value to the Employees: Promotion and Development
development reviews
GRI 405: Diversity and Equal Opportunity 2016
405-1 Diversification of Governing Institutions and Employees Delivering Value to the Employees: Recruitment Compliance
405-2 Ratio of basic salary and remuneration of women to men N/A
GRI 406: Non-discrimination 2016
406-1 Incidents of discrimination and corrective actions taken Delivering Value to the Employees: Recruitment Compliance
GRI 408: Child Labor 2016
408-1 Operating points and suppliers at risk of major child labor incidents Delivering Value to the Employees: Recruitment Compliance
GRI 409: Forced or Compulsory Labor 2016
Operating points and suppliers with significant risks of forced or compulsory Delivering Value to the Employees: Recruitment Compliance
409-1
labor events
GRI 413：Local Communities 2016
Operational sites with the participation of local communities, impact
413-1 Delivering Value to the Society: Community Involvement
assessment and development plans
Operations with significant actual and potential negative impacts on local
413-2 Delivering Value to the Society: Community Involvement
communities
GRI 414：Supplier Social Assessment 2016
414-1 New suppliers screened using social criteria Delivering Value to the Society: Sustainable Supply Chain
414-2 Negative social impacts in the supply chain and actions taken Delivering Value to the Society: Sustainable Supply Chain
GRI 416：Customer Health and Safety 2016
416-1 Assessment of the health and safety impacts of product and service categories Delivering Value in Shipping: Safety in Shipping
Incidents of non-compliance concerning the health and safety impacts of
416-2 Delivering Value in Shipping: Safety in Shipping
products and services
GRI 418: Customer Privacy 2016
418-1 Verified complaints related to invasion of customer privacy and loss of customer data Delivering Value in Shipping: Improvement of Services
71
Independent Assurance Statement
CECEP (HK) Advisory Company Limited (“CE- ity Report. CECEPAC (HK)’s activities of Assurance AA1000AS v3 and the ESG Reporting Guide by and "comply or explain" provisions in the ESG
CEPAC (HK)” or “We”) has been engaged by Engagement are independent from COSCO SEHK to the Board of Directors of COSCO SHIP- Reporting Guide of SEHK;
COSCO SHIPPING Lines Co., Ltd. (“COSCO SHIP- SHIPPING Lines. There is no relationship between PING Lines. This independent assurance state-
PING Lines”) to conduct an independent limited CECEPAC (HK) and COSCO SHIPPING Lines beyond ment applies solely to the Sustainability Report COSCO SHIPPING Lines and CECEPAC (HK)
assurance engagement (“Assurance Engage- the contractual agreement for providing proper in the specified scope, expresses a conclusion reached an agreement to select the specified
ment”) on the information and data related to service of assurance. on the assurance work, and does not serve any performance information in the Sustainability
sustainable development in the COSCO SHIPPING other intents or purposes. Report as part of the content for Assurance En-
Lines Co., Ltd. Sustainability Report 2022 (“Sus- CECEPAC (HK)'s assurance team consists of pro- gagement. The selected specified information is
tainability Report”), and disclosed the results fessional personnel who are experienced in the CECEPAC (HK) ensures that all personnel involved as follows:
and conclusions of the Assurance Engagement industry and have received professional training in assurance work meet professional qualifica-
to the intended users of the Sustainability Report in sustainability-related standards such as GRI tion, training, and experience requirements, and - Employee Injuries and Deaths – Total num-
in the form of an independent assurance state- Sustainability Reporting Standards issued by are proficient in conducting assurance engage- ber of deaths - Proportion of work-related
ment. Global Reporting Initiative, AA1000AS v3, the ESG ments. All results of assurance and certification deaths
Reporting Guide issued by SEHK, ISO 14001, and audit are internally reviewed by senior staff to - Community Investment – Total number of
CECEPAC (HK) has been engaged to assure ISO 9001, etc. ensure that methodologies used in the process people participating in community or public
COSCO SHIPPING Lines’ adherence to the four are sufficiently stringent and transparent. welfare activities
AA1000 Accountability Principles (Inclusivity, Ma- CECEPAC (HK)'s assurance team has rich expe- - Direct Energy Use - High-sulfur oil
teriality, Responsiveness, and Impact) set out in rience in conducting assurance and has a full IV. Scope of the Assurance Engagement The Assurance Engagement was with respect to
the AA1000 Assurance Standard v3 (“AA1000AS understanding and practical ability of AA1000AS The scope of the Assurance Engagement is lim- information disclosed from January 01, 2022 to
v3”). CECEPAC (HK) has also been engaged to v3. Meanwhile, the assurance team of CECEPAC ited to the data and information in the Sustain- December 31, 2022 only. Any information that
provide limited assurance on the reliability and (HK) carries out Assurance Engagement on sus- ability Report that related to COSCO SHIPPING falls outside this period that is disclosed in the
quality of specified performance information dis- tainable development issues in accordance with Lines, and does not include COSCO SHIPPING Sustainability Report is not included within the
closed in the Sustainability Report that has been the internal assurance protocol of CECEPAC (HK). Lines’ suppliers, contractors, and data or infor- scope of the Assurance Engagement. Therefore,
selected in accordance with the Environmental, mation provided by other third parties; we do not express any conclusions on this infor-
Social and Governance Reporting Guide (“ESG II. COSCO SHIPPING Lines’ Responsibilities mation; and
Reporting Guide”) published by the Stock Ex- COSCO SHIPPING Lines is responsible for the AA1000 AS Type 2 Moderate Level of Assurance
change of Hong Kong Limited (“SEHK”). preparation and presentation of the Sustainabil- was adopted to evaluate the nature and extent The scope of the Assurance Engagement is con-
ity Report in accordance with the ESG Reporting of COSCO SHIPPING Lines’ adherence to the four fined to the information and data provided by
Should there be any discrepancies or differences Guide published by SEHK. COSCO SHIPPING Lines AA1000 Accountability Principles (Inclusivity, Ma- COSCO SHIPPING Lines. Any queries regarding
between the Chinese and English versions of the is also responsible for implementing internal teriality, Responsiveness and Impact) set out in the content or related matters within this inde-
independent assurance statement, the Chinese control procedures to ensure that contents of the the AA1000AS v3; pendent assurance statement should be ad-
version shall prevail. Sustainability Report are free from material mis- dressed to COSCO SHIPPING Lines only.
statement, whether due to fraud or error. Assuring the degree of conformity of the general
I. Independence and Competence disclosure and key performance indicators of the V. Methodology of the Assurance Engagement
CECEPAC (HK) was not involved in collecting and III. Assurance Provider’s Responsibilities environmental and social subject areas of the CECEPAC (HK)’s Assurance Engagement was con-
calculating data involved in the Sustainability CECEPAC (HK) is responsible for issuing an in- Sustainability Report disclosed in accordance ducted at the headquarters of COSCO SHIPPING
Report, or in the development of the Sustainabil- dependent assurance statement according to with the “mandatory disclosure requirements” Holdings and the assurance works included:
72
Evaluating the appropriateness of COSCO SHIP- different, but acceptable, measures and meas- to sustainability. Our professional opinion is that tainability Report is unreliable and unqualified
PING Lines’ stakeholder engagement process; urement techniques and can affect comparability COSCO SHIPPING Lines adheres to the principle or not been prepared in all material respects in
between entities. of Responsiveness. accordance with the basis of reporting.
Conducting online interviews11 with COSCO SHIP-
PING Lines’ employees involved in sustainability VII. Conclusions Impact
management, preparation of the Sustainability In accordance with the principles of Inclusivity, In its risk management system, COSCO SHIPPING
Report and the provision of relevant information; Materiality, Responsiveness, and Impact in the Lines has established a process to understand,
AA1000AS v3, the specified performance infor- evaluate, assess and manage impacts. COSCO
Assessing whether the reporting and manage- mation and the degree of conformity with the SHIPPING Lines carried out an annual corporate
ment approach disclosed for the Sustainability ESG Reporting Guide, our findings and conclu- significant climate change-related risk evaluation
Report responded to the principles of Inclusivity, sions are as follows: to identify risks related to climate change and
Materiality, Responsiveness, and Impact as de- develop strategies to deal with climate change.
fined in the AA1000AS v3; Inclusivity Our professional opinion is that COSCO SHIPPING
COSCO SHIPPING Lines has identified key stake- Lines adheres to the principle of Impact.
Conducting sampling of evidence pertaining to holders and continuously communicated with
the reliability and quality of the selected speci- key stakeholders in various way to understand SEHK’s ESG Reporting Guide
fied performance information; their expectations and concerns. On this basis, The general disclosure and key performance in-
COSCO SHIPPING Lines has formulated policies in dicators of the environmental and social subject
Recalculating the selected specified performance consideration of key stakeholders’ expectations areas of the Sustainability Report are disclosed in June 27, 2023
information; and concerns. Our professional opinion is that accordance with the “mandatory disclosure re- Hong Kong SAR, China
COSCO SHIPPING Lines adheres to the principle quirements” and "comply or explain" provisions
Assessing the degree of conformity of the Sus-
of Inclusivity. in the ESG Reporting Guide of SEHK in all materi-
tainability Report with the ESG Reporting Guide;
al aspects. COSCO SHIPPING Lines disclosed the
and Materiality process of its key stakeholders’ participation in
COSCO SHIPPING Lines has conducted a mate- materiality assessment, objectively described the
Performing other procedures we deemed neces-
riality assessment for the Sustainability Report, impact of its business and calculated and dis-
sary.
collected the opinions of key stakeholders, closed relevant environmental and social data.
identified material issues through appropriate Our assurance comments for the Sustainability
The Assurance Engagement was performed
methods, and presented the results of material Report have been adopted by COSCO SHIPPING
and the conclusions within were based upon
assessment in its Sustainability Report. Our pro- Lines before the issuance of this independent
information and data provided to CECEPAC (HK)
fessional opinion is that COSCO SHIPPING Lines assurance statement.
by COSCO SHIPPING Lines, and on assumptions
adheres to the principle of Materiality.
that the information provided was complete and
Specified Performance Information
accurate.
Responsiveness Based on the procedures CECEPAC (HK) per-
COSCO SHIPPING Lines has established relevant formed and the evidence we obtained, nothing
VI. Limitations
communication channels with its key stakehold- has come to our attention that causes us to
The absence of a significant body of estab-
ers to collect their concerns and responded to believe that the disclosures of the three selected
lished practice on which to draw to evaluate and
the key stakeholders on material issues related specified performance information in the Sus-
measure non-financial information allows for
11
The assurance engagement was conducted online and the interview was conducted by teleconference.
73

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We Deliver Value - Connecting

the Land and the Sea

Sustainable Development Delivering Value to

Board statement 10 Solid Waste Management 27

Delivering Value to Delivering Value to Delivering Value to

Employee Communication 34 Community Involvement 53 Reporting Indicators Guidelines – GRI 67

Volunteering 55 Independent Verification Statement 72

◉ About this report

◉ Message from the Chairman

◉ About COSCO SHIPPING Lines

About this report

About this report

Reporting Period Scope of report

Message from the Chairman

Message from the Chairman

Message from the Chairman

About COSCO SHIPPING Lines

About COSCO SHIPPING Lines

Business Introduction Economic performance

COSCO Shipping relies on a global operation

Container shipping business

COSCO SHIPPING Lines manages its

About COSCO SHIPPING Lines

Collaborative Development of Ocean Alliance

Since its establishment in 2017, the Ocean Alliance

Container shipping business Social performance

373 ships 2.11 million TEU 263 lines 100% 33 hours

Environmental performance Community

357,992 tons 240,584 tons 123,293 tons 0 incident 894 hours

Board Responsibility Materiality Analysis

Risk Identification Target Progress

In practicing the responsibility of sustainable development,

The Company assigned an independent department to lead specific practices related to

COSCO Shipping Lines' governance structure

has established a normalized communication mechanism to provide an ● S

important reference for decision-making, and to continuously improve the

The level of interest in the topic

● Empowerment throughcollaboration ● Corporate governance

● Indirect economic impact ● Exhaust emissions

● Market performance ● Anti-discrimination

● Waste water discharge management

Low The importance of the topic to the development of CSL High

Substantive Topic Table

Economic performance Shareholders Council Material use

Public Interest Organizations/ Roadshow/reverse roadshow

Risk Management Framework Risk Management and Early Warning Mechanism

Business Ethics Anti-Monopoly

◉ Energy Use and Emission Reduction

◉ Water Resources and Waste Water Management

◉ Solid Waste Management

COSCO SHIPPING Lines has established a sound

Climate Change Risk Identification

Category Risk Description Potential financial impact

Category Risk Description Potential financial impact

1. Higher oil prices increase operating costs

Energy efficiency should be continuously improved

Energy Use Compared with other means of transportation (including

Continuous disclosure of greenhouse gas emis- Metrics and Targets

Energy Use and Emission Reduction

● equire ships to avoid sucking