中顺洁柔：2022环境、社会与管治(ESG)报告(英文版)
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C&S’ Targeted, People-Centered Action Principle
Foreword
A journey of a thousand miles begins with a single step.
So it is with life and business.With steely determination and clear goals,people’s living standards have improved.We always provide high-quality products and more considerate servicesin accordance with our philosophy of “building product, enterprise and professional brands.”
Concentration, technique and excellenceare the value we’ve endeavored to attain.
In the pursuit of quality,
we make technology-driven innovations.We win the market with quality and thus promote the development of our brand,
which is unanimously praised by our partners.
The blueprint of our dreamincludes each of our partners.
The good is like water,both soft and hard.
C&S,in its ultimate pursuit of re?nement,consistently maintains quality and innovationto build a century-old enterprise, create a tasteful lifestyle
and keep moving forward.We welcome, respect and employ talented people.We embrace the world and connect various ?elds to create a sharing, win-win situation,
and we strive to maximize the collective value of talents and users.
We look forward to working with youas we create a cleaner, more comfortable world.
2022 Environmental, Social and Governance (ESG) ReportC&S’ Targeted, People-Centered Action Principle
CATALOGUE
● C&S Paper Co., Ltd. (hereinafter "C&S"or "the Company") strives for the vision of "high-quality life, tasteful C&S" in order to provide more soothing, higher-quality products forconsumers. It is committed to building a harmonious enterprise, developing a sustainablebusiness model and creating a career-development platform with which employees can helpensure growth for themselves and the Company. It provides high-quality products and servicesto meet customer needs. C&S assumes its social responsibility while pursuing development tobene?t the Company, employees, partners, consumers and society. In all, we strive to convey apositive corporate image.
● The Company hereby prepared the 2022 Environmental, Social and Governance Report (“ESG
Report”), describing its concept and practice of sustainable development and the ful?llmentof social responsibility in terms of community well-being, corporate governance, investorrelations and the environment.
● This report was published electronically together with the 2022 Annual Report of C&S Paper
Co., Ltd. The digital version can be found on www.cninfo.com.cn, an information-disclosurewebsite speci?ed by the Shenzhen Stock Exchange (SZSE).
C&S’ Targeted, People-Centered Action Principle
C&S’ Targeted,People-Centered Action Principle
Chapter I
2022 Environmental, Social and Governance (ESG) ReportC&S’ Targeted, People-Centered Action Principle
Company pro?leC&S Paper Co., Ltd. (hereinafter “C&S” or “theCompany”) was established on May 28, 1999, ando?cially listed on SZSE’s SME Board (stock code002511) on November 25, 2010. As the ?rst A-sharelisted tissue-paper enterprise in China, it has anet asset exceeding RMB 5.1 billion, over 6,000employees and annual sales revenue in 2022 ofnearly RMB 9 billion. Thus, it has been accorded thehonorary titles “Outstanding Private Science andTechnology Enterprise in China,” “Top 100 PrivateEnterprises in Guangdong Province,” etc.The Company, with an adherence to the business philosophy of "building product, enterprise and professionalbrands," practices the "All We Care Is You" value proposition and continues to provide consumers with healthy,safe, environmental-friendly, comfortable and convenient products and services. Currently the Company featuresthree major brands, namely C&S, Sun and Dolemi. Main products include toilet tissues, facial tissues, pockettissues, wipes, kitchen towel, personal care products, cotton tissues, etc.Currently, the Company has established green productionbases in Jiangmen of Guangdong Province, Yunfu ofGuangdong Province, Chengdu of SichuanProvince, Jiaxing of ZhejiangProvince, Xiaogan of Hubei Province,Tangshan of Hebei Province andDazhou of Sichuan Provice (underconstruction, not yet put intoproduction). The products aresold throughout the elevenmajor territories of China(South China, Yunnan-Guizhou-Guangxi region,Shandong-Henan-Anhuiregion, Southwest China,Northwest China, East China,Central China, Northeast China,Southeast China and the HongKong-Macao region) as well asto overseas markets such asSoutheast Asia, Northeast Asia,Oceania and North America.
C&S’ Targeted, People-Centered Action Principle
Honors and Awards
Corporate cultureIn its more than 40 years of history, C&S always adheresto the business philosophy of “building product,enterprise and professional brands” and practicesthe “All We Care consumers with healthy, safe,environmental-friendly, comfortable and convenientproducts and services.
①Top 10 brands with strong growth potential in China's
FMCG market in 2021
③"Golden Chrysanthemum" Charity Donation
Medal for Companies (Organizations)
④2022 China Household Paper Industry
Craftsman Products
②Top 10 brands with rapid growth in China's FMCG
market in 2021
2022 Environmental, Social and Governance (ESG) ReportC&S’ Targeted, People-Centered Action Principle
⑧“Support Arts Education and Help Young Learners”:
Charitable Model
⑥National Quality and Integrity Benchmarking
Enterprise
⑦2022 Top 500 Charity and Public Welfare
Enterprises in China
⑤10th Tiger Roar Award: Corporate Image and
Event Promotion - Gold Award
TaoBuilding product,enterprise andprofessional brands
Running your lifelike a business,and running yourbusiness like a lifeWinPlay to win andkeep a peacefulmind in life
C&S’ Targeted, People-Centered Action Principle
C&S’ major events in 2022
In 2022, C&S actively ful?lled its socialresponsibilities as a corporate citizen.During the course of the year, C&Shad donated anti-pandemic materialsup to a value of over RMB 8 million tosupport the frontline sta? and those inpandemic-stricken areas.
The Company, in 2022, successfully completed Phase III unlocking/exercise of the stock options awarded in the?rst grant and reserved shares under the 2018 Stock Option and Restricted Stock Incentive Plan. This could enableincentive recipients to share the fruits of corporate development.
Providing aid to the frontline
Phase III unlocking/exercise of the 2018 Stock Incentive Plan
Restricted SharesStock OptionsAward price
(RMB/share)
Number ofemployeessubject tounlocking
Numberof actuallyunlockedshares
Exerciseprice(RMB/option)
Numberof entitledemployees
Numberof entitledoptionsFirstgrant
4.334635,947,9128.3722,0003,314,312Reserved7.0229781,74413.76555569,340
2022 Environmental, Social and Governance (ESG) ReportC&S’ Targeted, People-Centered Action Principle
In 2022, the company engaged in in-depth interactions with students from over 1,800 colleges and universitiesacross the country through its partnership with the Academy Award of the Advertising Arts Festival of the ChineseCollege Students. Working with Xinhuanet and Zhaopin.com, the company supported the C&S LivestreamingYouth Forum for insightful discussions on “the most challenging graduation season in history”. Special IPproducts were launched under the brand C&S, targeting students and their unique needs.
Launching the campus communication project and practicingthe youth-oriented brand strategy
C&S’ Targeted, People-Centered Action Principle
In line with the company’s youth-oriented strategy, C&S Wipes has undergone a complete brand repositioningand identi?ed chic o?ce ladies as its targeted customer group. Backed by high-quality products with aesthetictaste and pleasant user experience, the brand has embraced rebirth after successful promotional activities. Over100 million views and nearly 50 million comments speak for the increased popularity of the brand and its newproducts.
C&S Wipes embracing a new journey
2022 Environmental, Social and Governance (ESG) ReportC&S’ Targeted, People-Centered Action Principle
StandardGovernance andPromotion of NewRMB 10 BillionIndustrial Platform
Chapter II
The Company strictly abides by the Company Law of the People’s Republic of China, Securities Law of thePeople’s Republic of China, Code of Corporate Governance for Listed Companies, Guidelines for StandardizedOperation of Companies Listed on Shenzhen Stock Exchange as well as other laws, regulations and normativerequirements. Moreover, the Company has established a mechanism of corporate governance in combinationwith its actual conditions. The Company, in 2022, strictly complied with and enforced various basic managementsystems and further improved corporate governance. Despite the fact that it had already done a good job interms of information disclosure, the Company also strengthened investor relationship management, elevated itsacumen with respect to operation and management, and tapped innovative businesses so as to maximize returnsfor shareholders.
Standard Governance and Promotion of New RMB 10 Billion Industrial Platform
1010
Three bodies’ rational, standardizedoperations to promote development
Strict information-disclosure reviewfor fair-and-accurate informationtransmission
The Company continued to optimize its corporate governance structure thatconsists of the general shareholders’ meeting, the board of directors, the boardof supervisors and the management. As such, the hierarchical decision-makingmechanism of the “three bodies and one management” was speci?ed. Each levelperforms its own duties within respective scope of responsibilities and authority,thereby forming a scienti?c and e?ective mechanism featuring division of laborand checks and balances.The Board of Directors consists of nine members, including three independentdirectors. The Board of Supervisors is comprised of three members, including anemployee representative supervisor. Meanwhile, chairmen of the Audit Committee,
The Company ful?lls its information disclosure obligations in strict accordance withthe Rules Governing the Listing of Shares on Shenzhen Stock Exchange and otherrelevant requirements and strives to ensure the accuracy and completeness ofdisclosed contents and announcements without any material omissions. This hasavoided information asymmetry and guaranteed that all stakeholders, includingshareholders and investors, can learn about important company informationin a fair, timely manner. The Company, in 2022, has made constant e?orts toimprove information disclosure quality. During the course of the year, a total of 151announcements with a word count of 1.97 million have been disclosed. Meanwhile,no correction has been made to announcements for ?ve consecutive years.
5second
The generalmeeting ofshareholders
6secondboard ofdirectors
6secondboard ofsupervisors
5secondauditcommittee
1second
NominationCommittee
4second
Salary andAssessmentCommittee
1second
StrategyCommittee
Announcement
Ten thousand
words
the Nomination Committee and the Remuneration and Assessment Committee are all assumed by independentdirectors. The Company, in 2022, organized and convened the general shareholders’ meetings as well asmeetings of the Board of Directors, the Board of Supervisors and various committees in accordance with relatedrules in order to ensure that all the decisions are legal, compliant, authentic and e?ective. These meetingsinclude ?ve general shareholders’ meetings, six meetings of the Board of Directors, six meetings of the Board ofSupervisors, ?ve meetings of the Audit Committee, a meeting of the Nomination Committee, four meetings of theRemuneration and Assessment Committee and a meeting of the Strategy Committee.
2022 Environmental, Social and Governance (ESG) ReportStandard Governance and Promotion of New RMB 10 Billion Industrial Platform
Ful?llment of the independentdirector’s responsibilities andsupervision of the Company’sbusiness standards
Strictly standardized system linksfrom R&D to quality control formaximum product quality
The independent directors, in 2022,participated in corporate governanceas well as the work of the Board of Directors and special committees.Thus, they deliberated theCompany’s major events andprovided opinions on related partytransactions, guarantees, investment in and implementation of major events, etc. Due to the pandemic, theCompany didn’t arrange for the independent directors to personally inspect each production base and salesterritory at the end of the year. However, the independent directors did endeavor to learn about the Company’sproduction and sales, listen to each production base’s resumption plan, supply-chain allocation and otherinformation and o?er advice concerning the Company’s business operations by means of video conferencing,WeChat, telephone, etc.
The Company, by adhering to the brand concept of “All We Care Is You,” aims to provide consumers withproducts of higher quality and more comfortable experience. At every link--from R&D, procurement, productionand quality control to sale and delivery--the Company follows strict standards as it pursues innovation, stays onthe path from a good company to a great company, and meets its responsibilities as a provider of quality products.
The company insists on a customer-centric and market-driven approach and studies carefully both the actual andpotential needs of customers. It has introduced new processes, new technologies, and new formulas to developnew and upgrade existing tissues, toilet rolls, facial tissues, kitchen rolls, paper towels, wipes, and cotton tissues,etc. Always an industrial leader with high-quality products, the company is able to satisfy the diverse needs ofdi?erent customer groups.
Product research and development
Standard Governance and Promotion of New RMB 10 Billion Industrial Platform
2022 Environmental, Social and Governance (ESG) ReportStandard Governance and Promotion of New RMB 10 Billion Industrial Platform
Supplier management
C&S has cooperated closely with suppliers, based on mutual bene?t and win-win harmony. In the Company’sconstant e?orts made for customers, suppliers play a very important role in providing high-quality raw materialsfor us to produce products in line with customer expectations. After joint e?orts, both sides have established trustrelationships with each other so that customer needs are taken into account seriously.With pulp being its most important raw material, C&S only chooses suppliers that protect biodiversity,sustainability, renewability, and traceability.
Supply chain
Standard Governance and Promotion of New RMB 10 Billion Industrial Platform
Supply-chain managementThe Company has established an end-to-end supply chain system. A production, supply and marketing platformhas been built to interconnect the sales estimation system, production scheduling plan, packaging materialprocurement plan, and associated purchase-sale-inventory documents in the EAS system, thus realizing quick,e?cient collaboration.2022 saw the creation of a digital, automated, and e?cient supply chain that readily met the company’s businessdevelopment needs. Supporting e?orts included developing and optimizing new production, supply, andmarketing systems, building and upgrading stereoscopic warehouses in factories, optimizing the production,supply, and marketing strategy, and selecting better logistics service providers.
2022 Environmental, Social and Governance (ESG) ReportStandard Governance and Promotion of New RMB 10 Billion Industrial Platform
Exerting all e?orts for best performanceIn 2022, the Production Department of the company stressed basic processes and launched six major leanprojects and the TPM project to engage all employees in production management. In the meantime, the bottom-up management philosophy and the ?at corporate structure ensured procesion management and simpli?edprocesses. These measures e?ectively improved paper production e?ciency, though paper processing e?ciencydeclined slightly due to the expansion project in Tangshan.
Equipment improvement and innovationThe Company always encourages innovation and transformation. The innovation system has continuouslyinspired employees. In 2022, there were more than 220 technical improvements and innovations in total. Thefollowing table shows representative innovations in various production bases:
Optimization of production management and enhancement of productquality
NOProjectBefore improvementAfter improvement
2850 rewinder bottomingimprovement in Jiangmen Base
Maximum speed: 200 meters per minute; unstable bottomingperformance
Maximum speed: over 300 meters per minute; e?ectivelyimproving production e?ciency of high-weight products.
Facial tissue fragrance enhancersin Hubei Base
1. Impurities in spray heads caused clogging and uneven
fragrance spraying
2. Di?erent air pressures in the spray head of di?erent
machines led to spray leakage and risk of customer
1. Audi fuel injectors used as spray heads to ensure stable
air pressure and even spraying.
2. Solid-state relay control program modi?ed to ensure
responsive spraying.
Power consumption reductionproject in the pre-supply processin Hubei Base
Since the second phase was launched in Hubei, refrigerationequipment failures of di?erent degrees kept occurring, whichseriously a?ected the stable operation of the productionequipment.
The replacement of power frequency control of thecontactor with frequency conversion control and thesetting up of the Closed Loop Controller (PID) ensure moreaccurate temperature control and more safeguards for thestable operation of paper machines.
Paper machine waterjet cutter inHubei Base
High failure rate, high hardware maintenance costs, andserious waste of bottoming for each axis.
1. Reduced paper machine failure rate and improved paper
machine production e?ciency.
2. No hardware costs.
3. Waste paper recycled and manufacturing costs reduced.
Technological upgrading ofonline monitoring equipment inthe pre-supply process in HubeiBase
1. Inspection tours took a lot of manpower. Multiple sta?
members were involved in one tour to inspect a machine andrecord equipment temperature and vibration.
2. There were long intervals between inspections. Inspection
tours were conducted on a weekly basis to record equipmentvibration and temperature, resulting in long intervals inbetween and the lack of accurate and real-time knowledgeof equipment operation. The di?culty in detecting potentialequipment failures beforehand created more risks.
3. Manual inspection was susceptible to human errors caused
by di?erent choices of inspection spots or methods andthe accuracy of data collected was compromised. Wheninspections were conducted manually, sta? members mightchoose di?erent spots or methods for inspection, making itdi?cult to collect authentic data.
1. Real-time monitoring of equipment temperature and
vibration:
Real-time monitoring of equipment operation through on-site screens, or any mobile phones or computers.
2. Automatic alarm in case of possible failures
A standard value can be set on the screen. If thecorresponding monitoring value on the screen exceedsthe standard value, the screen will turn red and a shortmessage will be sent to relevant personnel for immediateinspection and follow-up. In this way, potential failures arepromptly addressed beforehand.v
Standard Governance and Promotion of New RMB 10 Billion Industrial Platform
NOProjectBefore improvementAfter improvement
Addressing missing facial tissuesheets and follow-up maintenance inHubei Base
Folded paper became ?u?y inside storage racksbecause of air pressure. This caused manyproblems such as paper falling in racks, unstablecutting, and frequent alarms of underweightedsmall packages, etc. This not only a?ected theoutput, but also created hidden quality risks.
The phenomenon of missing facial tissue sheets has beene?ectively addressed and no more complaints have been receivedabout underweighted packages. There is no more dust adhesioncaused by missing sheets and the output per shift has increased,ensuring the continuity of production and increasing quali?cationrate and production e?ciency.
Speed increase of paper machines inSichuan Base
Low speed negatively impacted productioncapacity.
The speed of the machine is increases, raising production capacityby 10-20% per shift.
Large rotary cutter innovation onfacial tissue production lines inSichuan Base
Frequent material blockages, possibly leading topaper surface shredding.
1. Possibility of shredding completely eliminated;
2. No paper surface scratches because of material blockage;
3. Reduced workload of manual screening and improved quality
and safety.
Technological advancement forbetter communication on additivesat the dry end of paper machines inTangshan Base
1. Adjustment of additives especially ?ow
parameters of di?erent chemicals at the dry endof paper machines faced challenges such as longdistance, low e?ciency, and labor-intensiveness;
2. Di?culty in monitoring real-time operation
of additives and in promptly identifying andaddressing abnormalities.
1. Remote setting of system parameters for additives at the dry
end improves work e?ciency by 80%;
2. Real-time monitoring of the operation of additives (liquid level
of tanks, ?ow in secondary pipes, pressure and ?ow in the masterpipe), coupled with the early identi?cation and removal of systemabnormalities by the supporting operator, reduces the probabilityof paper defects;
3. No costs of digging trenches in the ground to lay cables;
4. Reduced service fees for engaging engineers from
manufacturers as control logic programming and overarchingdesign are completed independently.
Second-phase technologicaladvancement of facial tissue trimmingpipelines in Tangshan Base
High power consumption and di?culty incleaning.
1. Reduced use of trimming fans;
2. Reduced labor intensity of manual trimming;
3. Reduced spending on electricity.
Real-time cable monitoring andcontrol improvement in Yunfu Base
Absence of real-time cable monitoring andcontrol
Real-time monitoring of temperature changes in cables to prevent?re and other safety hazards in advance.
Technological adjustment of felt high-pressure pipes in Yunfu Base
The small high-pressure pump without shaft hada short service life.
The removal of the high-pressure pump spares employees thetrouble of having to use a cutter to peel paper and damage theshaft when the high-pressure pump stops functioning.
Technological advancement ofnegative pressure ventilation blowersin Songchuan medium packingmachines in Sichuan Base
The 3KW-negative pressure ventilation blowershad similar functions as the 4KW ones butconsumed more energy.
The replacement of 3KW- negative pressure ventilation blowerswith 4KW ones meets the requirements of normal production andachieves good results in saving energy and reducing consumption.
Technological transformation ofXinyue Model in Yunfu Base
Paper machine speed, output, steamconsumption, electricity consumption, and PEOconsumption could be optimized.
Improved speed and output of paper machines and reduced steamand power consumption. No PEO consumption.
Technological transformation ofpapermaking maglev vacuum pumpsaround China
The average operating power of the 11 vacuumpumps across the country was over 200 kwbefore the transformatio
After the transformation, the average operating power drops toover 100 kw, saving about 45% of electricity consumption. Allvacuum pumps combined, more than six million kilowatt-hours ofelectricity will be saved every year, marking a great contribution tocarbon emissions reduction.
Technological transformation ofservomotors around China to cutelectricity consumption
Pressure screens and pulpers around Chinaused ordinary motors, leaving room for savingelectricity consumption.
On average, 29.5% of electricity is saved after nationwidetechnological transformation. Over three million kilowatt-hours ofelectricity will be saved every year, marking a great contribution tocarbon emissions reduction.
2022 Environmental, Social and Governance (ESG) ReportStandard Governance and Promotion of New RMB 10 Billion Industrial Platform
The year 2022 was one in which the Company worked to strengthen its channels.The ?ve channels, namely GT (General Trade), EC (E-Commerce), KA (KeyAccount), AFH (Away from Home) and RC (Retail Consumer), guide consumerswith more accurate and targeted services, with tangible results. Its currentmarketing network covers most of the prefectural and county-level cities.Products are directly sold to counties and then distributed to towns. This helpsachieve segmented, ?at market operation and e?ectively expands the dealernetwork.Additionally, while ensuring the smooth operation of other channels, theCompany has established a professional e-commerce operation team, devotedmore resources to e-commerce platforms, built and improved the correspondingsupply chain system, and intensi?ed its routine operation management.Currently, the Company has reached cooperation with renowned platformssuch as Tmall, JD, Pinduoduo, Taobao, Vipshop, Suning, Kuaishou, TikTok, Yunjiand NetEase. E?orts have been stepped up in the layout of emerging businessmodels such as new retail, O2O, livestream shopping and community groupbuying. Moreover, it has developed an AFH service team for AFH channels andcustomer bases to match the growing AFH market. Several marketing activitieswere conducted in 2022, including new product launch, live stream from thePresident of the Company and joint brand promotion activities.Thanks to a robust sales network plus quality and diversi?ed products, theCompany is able to constantly consolidate its market basis, improve consumerexperience, and enhance brand reputation, which can help achieve sustainableand stable growth in the future.
Building channels in a deep and meticulous mannerto promote new goal of RMB 10 Billion
Standard Governance and Promotion of New RMB 10 Billion Industrial Platform
The fast-growing economy and the rapidly expanding consumer demand highlight to the company the importanceof improving product quality. Guided by the philosophy of “ensuring high quality through technologicalinnovation and wining customer satisfaction through reliable services”, the company has always put quality ?rst.Quality orientation is shown in the attitude of every employee as well as their detail-minded actions. A sound andstrict management system, together with operating speci?cations, is in place to cover the whole business process,from raw material procurement and process quality control to ?nished product inspection, product delivery, andafter-sales service. Vigilant control and strict oversight ensure high-quality products and services for consumers.The company has developed strategic partnerships with the National Standardization Technical Committee ofthe Paper Industry, the National Paper Quality Inspection and Testing Centre, and Sinolight Paper Inspectionand Certi?cation Co., Ltd. in its e?orts to contribute to the national big data strategy, especially by releasing thepotential of data in the paper industry. Drawing on their combined strength in such areas as standardization,testing, calibration, research, and data resources, the company has gained access to the Industrial Service DataPlatform on Paper and Paper Product Quality Standards, which ensures its provision of high-quality data serviceson product quality standards in a comprehensive manner.C&S strives to build constant temperature and humidity laboratories in its regional factories, laying a solidfoundation for product testing. All products are subject to internal testing and control standards that meet orexceed national standards before leaving the factory. This ensures that all national and industrial requirementsare promptly met.Certi?cations: C&S and six of its subordinate production companies have passed certi?cations of the ISO 9001quality management system, the ISO 14001 environmental management system, and the ISO 45001 occupationalhealth and safety management system. Moreover, C&S, together with six of its subordinate production companiesand nine of its trading companies, has passed the FSC?COC (FSC? Chain of Custody) certi?cation. The Face andCotton Tissue series have obtained biodegradable product certi?cation.The Company always puts consumer ?rst and values user experience. The Quality Management Department ofthe Company was organized in order to hold the Quality Evaluation Conference at regular intervals, evaluateproducts from six major production bases in aspects from physical and chemical indicators to actual touchfeeling, and identify areas requiring improvement. Additionally, the Company has been improving and perfectingcustomer complaint channels. The Company receives complaints and suggestions from customers throughmultiple channels, strives to understand customers’ advice on product defects and improvements, and givestimely feedback to the R&D and Production departments to continuously improve product properties and meetconsumers’ usage requirements.
Quality management and customer service
2022 Environmental, Social and Governance (ESG) ReportStandard Governance and Promotion of New RMB 10 Billion Industrial Platform
People-OrientedPrinciple toFacilitate EmployeeValue Achievement
Chapter III
The Company attaches great importance to the cultivation of employees and always puts talentat the focal point of corporate development. As such, it constantly establishes and improvesthe talent management and development system and o?ers fair development channels anddiverse education and training opportunities for employees. Moreover, the Company strives tounderstand employee demands through various ways and pays attention to their lives to makethem feel the warmth and care of the Company.
People-Oriented Principle to Facilitate Employee Value Achievement
C&S gives equal opportunity, fair treatment and complete welfare to all employees. Additionally, it hires thedisabled and provides job opportunities for more disabled people.
Sta?ng structure
2022 Environmental, Social and Governance (ESG) ReportPeople-Oriented Principle to Facilitate Employee Value Achievement
Remuneration and bene?tsThe Company hires employees in accordance with the requirements of national labor laws and regulations,signs a written labor contract with each employee on the basis of equality, voluntariness and consultation, andprovides competitive total compensation and statuary bene?ts for each employee in line with laws. To advocatea humanized working atmosphere, the Company prepares di?erent gifts for employees in every important festivalor holiday. Additionally, the Company also follows important anniversaries of employees, such as holding birthparties for employees or sending our best regards and gifts when they get married or have babies. The variousevents help the employees and their family members feel the warmth of our big family, and a relaxed workenvironment encourages them to improve their life balance while promoting the stability of employee teams so asto ensure the healthy development for the Company and its people.
On the basis of understanding the needs of employees, the Company strives to improve the lives of employees,create a sound working environment and stimulate their enthusiasm in work, thereby achieving healthy and stabledevelopment.
Creating a warm working environment
People-Oriented Principle to Facilitate Employee Value Achievement
The Company organizes a variety of events, competitions and team building activities to enhance the team spiritand send of belonging of employees and create a workplace atmosphere of happy work and happy life.
Organizing rich cultural and sports activities
2022 Environmental, Social and Governance (ESG) ReportPeople-Oriented Principle to Facilitate Employee Value Achievement
Employee training
The Company continued to improve its training system in 2021. The Learning and Talent Development Center hasestablished a comprehensive internal talent pool for all levels, formulated an e?cient talent-echelon trainingmechanism and dramatically transformed learning outcomes. All these have helped to build a future- andlearning-oriented team and activate the new engine of corporate development.Moreover, the Company o?ers training programs of various varieties and forms that cover all sequences andpositions so as to facilitate the growth and development of employees. The Company also improves thecomprehensive competence and quality of employees from the aspects of macroeconomics, national policy,corporate strategy, standardized governance, ?nancial management and HR management. Additionally,systematic and professional training is o?ered to new employees to facilitate their smooth integration into theCompany.The Company has established production-safety and management systems, through which it has conductedinvestigation and treatment in regard to hazards. It has improved the occupational health and safety educationand training of employees, and obtained certi?cation under the QHSAS 18001 occupational health and safetymanagement system. The Company has regularly organized the safety production meetings, conductedemergency drills, ?re-safety training and other activities, and purchased various labor protection articles foremployees in a timely manner, thus ensuring their safety during production and related work.
People-Oriented Principle to Facilitate Employee Value Achievement
2022 Environmental, Social and Governance (ESG) ReportPeople-Oriented Principle to Facilitate Employee Value Achievement
Ensuring Opennessand Transparency toProtect Investors’Rights and Interests
Chapter IV
Better communication with investors and assurance of investor rights and interests are moreconducive to the openness, transparency and long-term development of enterprises. Betterlistening to investor suggestions is bene?cial to investor supervision of enterprises.
Ensuring Openness and Transparency to Protect Investors’ Rights and Interests
The Company featuring favorabledevelopment
The Company has introduced outstanding talents from R&D, production, sales, quality management, among othersystems since 2014, thereby establishing a ?rst-rate management team. The introduction of the new managementteam has led to the comprehensive reform of various aspects of the Company including the managementstructure, marketing channel and incentive mechanism, and further improved operation of the Company.After several years of e?ort, the Company has seen signi?cant improvement in its channel, product and brandstrengths.
2022 Environmental, Social and Governance (ESG) ReportEnsuring Openness and Transparency to Protect Investors’ Rights and Interests
Prioritizing dividends to repayinvestors
To ensure investors can share the fruits of corporate development, C&S, while ensuring its growth anddevelopment, attaches great importance to shareholder returns and repay shareholders with practical actions.The Company has maintained a consistent pro?t distribution policy since it was listed on the stock exchange,and consequently it prioritized a reasonable return on investment while giving consideration to the Company’ssustainable development. To ensure the continuity and stability of the pro?t distribution policy and protect theinvestors’ interests, the Company re-examines the shareholder return program every three years.Its pro?t distribution proposal in 2022: Distribute a cash dividend of RMB0.62 (tax inclusive) for every 10 shares toall shareholders. No bonus shares will be issued, and no capital reserve will be converted into share capital.
The Company’s pro?t distribution plans over the years since listing
(including share repurchase amount)Year
Cash dividendamount (tax inclusive)
Ratio of cash dividend to net pro?tattributable to shareholders of thelisted company in the consolidated
statement (%)2021年789,859,682.88135.932020年156,832,468.7617.312019年98,024,652.98 16.232018年124,358,696.4930.562017年75,746,45421.702016年50,525,80019.402015年25,183,85028.552014年4,056,0006.012012年31,200,00019.632011年32,000,00039.73
Ensuring Openness and Transparency to Protect Investors’ Rights and Interests
Diversi?ed communication mechanismto strengthen investor relations
The Company attaches great importance to the communication with the capital market and has graduallyestablished a diversi?ed mechanism for investor communication. The Company maintains close contact withinvestors through onsite, phone and online meetings as well as strategy meetings organized by major institutionsso that investors can learn more about the Company. Additionally, it communicates with investors regularly viaphone, e-mail, SZSE’s interaction platform, performance brie?ngs, investor reception days, and other formats soas to facilitate their understanding of the Company, solidify mutual trust and convey its values to investors.The Company, in 2022, answered 157 questions raised by investors on the interaction platform and receivedtwelve surveys from domestic and foreign securities ?rms, funds and other institutional or individual investors.Moreover, it convened the annual report brie?ng meeting to answer questions from investors.
2022 Environmental, Social and Governance (ESG) ReportEnsuring Openness and Transparency to Protect Investors’ Rights and Interests
To help investors more fully understand the Company’sproduction, sales, products and brands, the Companystarted to build the Life Hall in 2020. The place providesdetailed information on the Company’s history, productiontechnologies, application scenarios, products and operations,thus allowing investors to get a glimpse of the Company withthe best sensory experience.
We care
ince the Company’s establishment, our e?ortshave been devoted to meeting every demand fortissue paper. Beginning with an understandingof C&S, we care about the value of commitment.Products rely on brands, and enterprises rely onbrands. This is even truer for people.
Reception areaHere you can embark on the journeyof exploration to understand the lifephilosophy of C&S and facilitate theharmonious coexistence of human andnature.
Ensuring Openness and Transparency to Protect Investors’ Rights and Interests
We care about your environmentOur attitude toward every productoriginates from the good intention forthe harmonious coexistence of humanand environment. Here you will ?ndthat we take the utmost care in everyprocess from selection of raw materialsto product use by consumers.
We care about your life
With easy access, we strive to satisfy everydemand when you’re at home.In every scenario, we strive to meet everydemand in your daily life.
2022 Environmental, Social and Governance (ESG) ReportEnsuring Openness and Transparency to Protect Investors’ Rights and Interests
We care about your experience
From product quality to other aspectsbeyond that, we always take the utmostcare to provide more diversi?ed products,more human-based services and moreconsiderate experience, with a view tomaking your life even better by virtue ofcontinuous e?orts and practices.
Ensuring Openness and Transparency to Protect Investors’ Rights and Interests
Since opening in 2022, C&S Life Hall hasreceived 130 tours of more than 2,800visitors, covering governmental agencies,investors, enterprises, schools andemployees. It was certi?ed as the onsiteteaching base of the Sun Yat-Sen UniversityHigher Center for Continuing Education.
2022 Environmental, Social and Governance (ESG) ReportEnsuring Openness and Transparency to Protect Investors’ Rights and Interests
Pursuit of GreenDevelopment andFul?llment ofCorporate SocialResponsibilities
Chapter V
Adhering to a philosophy of green, low-carbon development, C&S strives tointegrate environmental protection into corporate development.Enterprise development is rooted in society, so giving back to society is aresponsibility of the Company.The Company attaches great importance to the demonstration of social values andregards the creation of prosperity for the society as a commitment of corporatesocial responsibility, with a view to in?uencing and driving the revitalization of localeconomy through its development.
Pursuit of Green Development and Fulfillment of Corporate Social Responsibilities
Strict supervision, minimum allowableemission, transparency and fairnessUnder increasingly higher pressure related to environmental protection, the Company continues to improvepollution management facilities in production process and improve environmental quality. All production bases ofthe Company continue to increase capital and technological inputs and prevent environmental pollution, therebyachieving minimum allowable emission, reduced emission and green production.
Online monitoring and operation of water treatmentfacilitiesSix subsidiaries or branches in Jiangmen, Sichuan, Zhejiang,Tangshan, Yunfu and Hubei have all installed on-line sewagemonitoring facilities, which are directly supervised by localenvironmental protection bureau.
Con?guration and operation of water treatmentequipment and facilitiesach subsidiary has a complete array of environmental protectiontreatment equipment and facilities. The main sewage treatmentprocesses are anaerobic, aerobic and subsequent deeptreatment processes, which can achieve the discharge standardsof various sewage indicators. Moreover, each subsidiary isequipped with a recycling water system in which the reclaimedwater that meets the usage standard is used for re-productionto reduce the discharge of sewage as far as possible. The sewageof Jiangmen, Zhejiang, Hubei and Tangshan companies isdischarged after centralized treatment in the Company andtreated by the local sewage treatment plants. After centralizedtreatment in the Company, the sewage of Sichuan Companyenters water puri?cation station through urban sewage pipeline.The sewage of Yunfu Company, after treated by the Company’ssewage-treatment station and reaching the standard, isdischarged in an organized manner.
Construction and operation of facilities for pollution control and prevention
Duty toward complianceThe Company and its subsidiaries strictly abideby national and local environmental laws andregulations. All new projects strictly implementthe environmental impact assessment system and“three simultaneous” system. All productionactivities strictly comply with the EnvironmentalProtection Law of the People’s Republic of China,the Law of the People’s Republic of China on thePrevention and Control of Water Pollution, theLaw of the People’s Republic of China on thePrevention and Control of Atmospheric Pollution,the Law of the People’s Republic of China on thePrevention and Control of Environmental Pollutionby Solid Waste and the Action Plan for Preventionand Control of Water Pollution, and ensure that allpollutant treatment and discharge are in line withthe requirements of laws and regulations.
Boiler waste gas emission
The Sichuan and Tangshan subsidiaries are equipped withnatural-gas boilers. Hubei Company is equipped with a coal-?redboiler, and waste gas is emitted uniformly after desulfurizationand denitri?cation. Boiler waste gas emission conforms toGB13271-2014 Emission Standard of Air Pollutants for Boiler.
2022 Environmental, Social and Governance (ESG) ReportPursuit of Green Development and Fulfillment of Corporate Social Responsibilities
Environmental impact assessment of construction projects and otheradministrative permits for environmental protection
Environmental-event emergency response plan
According to the Measures for theAdministration of Pollutant DischargePermit of the Ministry of EnvironmentalProtection of the People’s Republic ofChina, the applications were submitted tothe Environmental Protection Bureau. Allthe subsidiaries and branches completedthe renewal and change of the pollutantdischarge permit in June 2021.
The Company always implements control of constructionprojects strictly in line with environmental protection-related laws and regulations. All construction projectsare subject to environmental impact assessment. Duringthe construction process, the Company organizes theconstruction of environmentally friendly projects in line withconstruction schedule, ensuring the synchronous design,construction and operation of environmental protectionfacilities and subject projects. Currently, all constructionprojects put into production have completed environmentalimpact assessment, and reception and approval.
-------------------------------Administrative permitsConstruction projects
The Company strictly implements emergencyresponse rules for sudden environmental events,and, in accordance with the technical requirementsin the Technical Guidelines for Preparation ofEmergency Plans for Environmental PollutionAccidents, employs a professional advisory andguidance organization to formulate the EmergencyPlan for Sudden Environmental Events, which hasbeen reviewed by and ?led with the EnvironmentalProtection Bureau.
The Company has matched the correspondingemergency response supplies according to therequirements of the Emergency Plan for SuddenEnvironmental Events. Emergency response measuresfor hazardous chemicals have been preparedaccording to environmental protection requirements,and necessary labor protection supplies andemergency response supplies have been providedin accordance with safety technical instructions,and checked and updated regularly. The Companyregularly carries out emergency training and drilland suitability assessment of the emergency planto ensure the e?ectiveness and enforceability of theemergency plan.
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Preparation and reporting of emergency plan for
sudden environmental events
Emergency response supplies, training and drill
Pursuit of Green Development and Fulfillment of Corporate Social Responsibilities
Waste gas monitoringThe main testing items are nitrogen oxide, ringelmanemittance, sulfur dioxide, soot, mercury andtheir compounds. The frequency of testing is incompliance with the requirements of regulations.。The self-monitoring data of pollutant dischargeand environmental monitoring plans are disclosedon provincial disclosure websites for key pollution-source information while paper reports aresubmitted to the Environmental Protection Bureaufor archival.
Sewage monitoring
Currently, self-monitoring is a combination of manualmonitoring and automatic monitoring, and quali?edunits are entrusted to carry out monitoring regularly.Automatic monitoring items: main discharge outlet ofwastewater (COD, ammonia nitrogen, ?ow rate, PH,total nitrogen); Manual monitoring items: BOD, SSand chroma indicators are monitored daily or weekly;for other sewage monitoring items, uncontrolledemissions, solid waste and factory boundary noise,each subsidiary entrusts quali?ed units to carry outmonitoring work monthly or quarterly according tothe local environmental protection requirements.
Environmental self-monitoring plan
Reducing production costs andachieving energy conservation andemission reductionThe Company has always adhered to the concept of green and low-carbon development and integratesenvironmental protection into corporate development. In the process of production, the Company continuouslymodi?es equipment and innovates in technologies, with power and steam consumption per ton of paperdecreasing year by year. This could maximize energy savings and emission reduction on the basis of reducingcosts, thus achieving the win-win of socioeconomic bene?ts.
YoY reductions in standard coal conversedfrom power/steam consumption per ton of paper 2017 - 2022Item201720182019202020212022Standard coal reduction conversed frompower consumption per ton of paper (kgce/t)
647932Standard coal reduction conversed fromsteam consumption per ton of paper (kgce/t)
2011201670
The Company strictly abides by laws and regulations,carries out self-monitoring work in accordance withenvironmental protection requirements, establishesenvironmental management ledger and data, andconstantly improves it.
2022 Environmental, Social and Governance (ESG) ReportPursuit of Green Development and Fulfillment of Corporate Social Responsibilities
Trading of carbon-emissions rightsChina’s ?rst emissions trading scheme (ETS) was launched in Shenzhen on June 18, 2013, and subsequentlyBeijing, Tianjin, Shanghai, Guangdong, Hubei, Chongqing, and other provinces and cities rolled out pilot projectsfor carbon-emission trading. Among the seven pilot regions, most of the provinces and cities issue quota toemission-control enterprises free of charge. As a result, the primary market for quota trading employs the methodof administrative allocation. Wherein, Guangdong, Shenzhen and Hubei issue certain quotas to emission-controlenterprises through bidding.As of December 31, 2022, Jiangmen Production Base and Yunfu Production Base of Guangdong Province and HubeiProduction Base had carbon-emission quotas. The provinces in which other subsidiaries are located haven’t yetbegun to issue carbon-emission quota and conduct accounting.
Carbon Trading at the Jiangmen, Yunfu and Hubei Production Bases Unit: 10,000tItemCompany202120202019201820172016
Actual emission ofJiangmen Base
Jiangmen13.9913.9713.6015.3016.2815.10
Emission quota ofJiangmen Base
Jiangmen20.0618.9416.4616.2416.6913.81Actual emission of Yunfu
Base
Yunfu19.7719.2320.4314.8612.13/Emission quota of Yunfu
Base
Yunfu25.4624.3123.1114.6812.02/Actual emission of Hubei
Base
Hubei16.648.21////Emission quota of Hubei
Base
Hubei15.9311.13////Note: Actual carbon emission in 2022 will be released after accounting by review institutions.Jiangmen Production Base recorded actual carbon emission higher than carbon-emission quota in 2016. Throughcontinuous energy conservation, emission reduction and consumption reduction measures, it managed tocontinuously reduce power, steam and pulp consumption in production, and actual carbon emissions from 2017to 2021 are lower than carbon-emission quotas.Yunfu Production Base recorded actual carbon emission higher than carbon-emission quota in 2017 and 2018.Through constant energy conservation, emission reduction and consumption reduction measures, it managed tocontinuously reduce power, steam and pulp consumption in production, and actual carbon emissions from 2019to 2021 are lower than the carbon-emission quota.Hubei Production Base recorded actual carbon emission lower than carbon-emission quota in 2020, higher than in2021.The Company will continue to devote itself to energy-saving, emission-reduction and consumption-reductionactions and implement them simultaneously throughout the group in order to ful?ll its corporate socialresponsibilities for environmental protection.
Pursuit of Green Development and Fulfillment of Corporate Social Responsibilities
Contributing to social welfare causes
In 2022, as a national enterprise with important social in?uence, C&S actively ful?lls its responsibilities as acorporate citizen. The Company helps the frontline personnel and a?ected areas in the ?ght against the pandemic.In 2022, the company donated RMB eight million of supplies and materials, such as masks, household paperproducts, disinfectant wipes, and care products, to cities including Jilin, Qingdao, Jiaxing, Zhongshan, Dongguan,Shenzhen, Weihai, Guangzhou, Foshan, and Shanghai.
Providing aid to the frontline
2022 Environmental, Social and Governance (ESG) ReportPursuit of Green Development and Fulfillment of Corporate Social Responsibilities
?In March 2022, C&S donated over 25,000 care packages, with a total value of RMB 690,000, to Zhongshan
Women and Children Welfare Foundation at a ceremony organized by the Women’s Federation of Zhongshan Cityto celebrate the 112th Anniversary of International Women’s Day under the theme of “Women Together for AStronger China and A Better Future”.?Jiangmen Zhongshun participated in an initiative sponsored by the Red Cross Society of China to “Send Love
to Thousands of Families” by donating to 151 families in need and contributing supplies valuing RMB 22,600.?Jiangmen Zhongshun paid visits to families in need during the Dragon Boat Festival and contributed suppliesvaluing RMB 4,500.
Engaging in public welfare undertakings to help those in need
The Company, in 2022, continued to sponsor the “C&S Cup” International Standard Dancing OpenChampionship. The competition was held in 31 cities of 18 provinces, comprising 21 events. China internationalstandard dance is a fashionably elegant dance that's very popular among the public that integrates the featuresof mass appeal, entertainment, artistry and competition. Therefore, by sponsoring the event, the Company notonly facilitated the promotion of international standard dance across China but also played a role in building aharmonious society, promoting cultural enrichment, including sports, in daily life.
“C&S Cup” International Standard Dancing Open Championship
OutlookChapter VI
2022 is a year of challenges but also a year of abundant harvest!Those who believe in themselves never stop halfway and those who never stop halfway willembrace the ultimate victory. Every step towards the peak is a stride towards victory.We will continue to conduct business in a compliant and honest manner, promote the in-depthintegration of product quality and consumer experience, re?ne product functions and expandproduct categories so as to create returns for shareholders, build a solid development platformfor employees and contribute to society.The new journey is unfolding before our eyes. Everyone at C&S will continue to carry forwardthe spirit of bravely climbing the peak with a more positive and con?dent attitude. Let’s workhard and forge ahead for a better 2023 and a better future!
New era, new journey!Fight for the RMB 10 billion
target and win the future!