Built upon the bedrock of compliant and prudent practices, we seamlessly incorporate the ESG principles into corporate governance, safeguard against operational risks, fortify our business ethics, enhance our competitive prowess, deepen our corporate value, and elevate the sustainability and resilience of our operations.
Our Commitment
We uphold the values of integrity and honesty. Internally, we adhere to the principles of compliance and integrity, requiring employees to strictly follow relevant laws, regulations, and internal policies in all business activities, creating a transparent and ethical corporate culture. Externally, in our business relationships with suppliers, customers, business partners, shareholders, and other stakeholders, we insist on conducting business with integrity and adhering to commercial ethics, with zero tolerance for any unethical or illegal behavior. Sustainable development cannot wait.
By reducing carbon dioxide emissions by 368,886t in 2020, the Chindata Group exhibits personal and professional commitments to clean energy. For such initiatives, Greenpeace's 2020 Clean Cloud Report ranked Chindata #1.
As a subsidiary of the industry-leader in sustainability, we are committed to responsible growth.
Our Practice
We have established a governance framework with clear positioning, well-defined responsibilities, and standardized processes. We continuously optimize our system and refine our management practices, striving for excellence in corporate governance with a top-down approach.
Refine the Corporate Governance System
We possess a comprehensive corporate governance system, with the Board of Directors at its core. This system includes the establishment of the Audit Committee, the Compensation Committee, and the Corporate Governance and Nominating Committee. Each committee has its own charter to guide its work and define its responsibilities. We keep promoting board diversity by considering factors including but not limited to gender, age, cultural and educational background, race, and professional experience. The Board is composed of directors with diverse backgrounds to promote the balance of decision-making in the company. We pay close attention to board independence, to ensure that independent directors can raise professional opinions freely and objectively.We are also committed to creating a diverse workplace culture with diverse leadership. We encourage women to take on management positions. The Group has a total of 45 mid-to-senior-level managers, including 11 women, accounting for 24.25% of all managers.
Risks and Compliance
Upholding the ideas of compliance and stability, we abide by the guidelines and regulations issued by regulators. Building upon the establishment of domestic and international legal management systems and offering tailored legal support, we will enhance control measures in the realms of internal governance, tax compliance, and ethical business practices. This will ensure the Group’s steadfast development.
Communicate with Stakeholders
We highly value the rights and interests of investors and stakeholders, takes into full consideration the perspective of investors, and proactively interacts with them, ensuring their engagement in major decisions of the Company. The Investor Relations Department maintains a market strategy featuring proactive communication, reaching out to capital market players, and demonstrating the Group's business philosophy and achievements to investors to inform them of the Group's corporate culture and business dynamics in real time. We concurrently prioritize the influence of our production and operational activities on external stakeholders, the economy, society, and the environment. This is achieved through the establishment of a normalized mechanism for communication with relevant stakeholders to understand their expectations and demands. The Group encourages stakeholder participation in decision-making and activities related to corporate sustainability. Through practice, the Group continuously enhances the effectiveness of stakeholder participation.
| Issues | Potential ESG risks/opportunities | |
|---|---|---|
| Governance | Regulatory Compliance | With the increasing stringency of regulatory requirements from both domestic and foreign governments and regulatory bodies, the Group is facing higher demands in terms of its ESG governance systems and information disclosure. This means that the Group may encounter greater compliance risks and heightened investor scrutiny regarding ESG issues. To mitigate operational and financing risks, it is imperative for the Group to enhance its ESG governance system and optimize its ESG information disclosure. |
| Business Ethics | Implementing robust corporate governance and transparent management practices to prevent ethical risks such as corruption, embezzlement, insider trading, and unfair competition. This will enhance operational certainty and instill confidence in investors and other key stakeholders. | |
| Society | Data Security and Privacy Protection | Strengthening data security and privacy protection, establishing comprehensive systems and policies to manage information security, fortifying defenses for data security and privacy, and enhancing the ability to respond to data security risks. Continuously improving the coverage of training for employees and suppliers on data security and privacy protection to better safeguard the rights of customers and partners in an ecosystem, thereby consolidating the stability of business operations. |
| Human Resources | By adhering to lawful labor and employment practices, safeguarding the rights of employees, implementing transparent and democratic management, and providing unhindered channels for employee development, we aim to ignite a sense of ownership among our workforce. This will ensure that employees become the driving force behind the growth of the company. | |
| Supply Chain Management | The Group is regulating supplier behavior through three key aspects: admission, assessment, and supplier exit. The Group is committed to improving its supply chain management system to better identify and address potential ESG risks in the supply chain, working together with suppliers for mutual success. | |
| Environment | Climate Change | The uncertainties associated with climate change can give rise to acute or chronic climate risks, which in turn may result in more stringent regulatory requirements, shifts in market sentiment and expectations, and uncertainties surrounding the utilization of resources and energy in data centers. These factors have the potential to lead to asset depreciation and a decline in business revenue. |
| Environmental Management | In data center operations, we are committed to our "zero-carbon computing" strategy, focusing on key environmental indicators such as PUE, WUE, and CUE. Our primary goal is to address challenges such as the significant increase in server power consumption and the mounting pressure for server cooling through technological innovation. By doing so, we aim to establish a green computing center providing computing power that surpasses customer demands while also prioritizing environmental sustainability. This approach will strengthen our core competitiveness as a company. | |
Enhance Business Ethics
In terms of strengthening business ethics risk control and management, we embed elements such as anti-bribery, anti-corruption, anti-fraud, and anti-unfair competition into our management system. We enhance our business ethics management practices and supervision mechanisms, demanding strict adherence to ethical boundaries from every member of our organization. We also collaborate with our partners to establish a fair competition and integrity-based cooperation model, collectively fostering a transparent and open business environment.
ESG Policy
We fortify our data security safeguards, achieving a 0% occurrence rate of major data security incidents and maintaining a 100% customer retention rate；
We continue to increase our investment in technology, with an investment of approximately 83.5 million yuan in technology research and development in 2022, representing a 10.8% increase compared to the previous year；
We consistently make breakthroughs in patent development. As of the end of 2022, the Group has obtained and applied for a total of 423 patents, representing a year-on-year growth of 51%。