Minimizing Environmental Impacts

As part of its efforts, the Company established the Workplace Safety and Environmental Protection Committee. Led by the Company's top management, the Committee leads, coordinates, promotes, and decides on the Company's strategic goals and plans for environmental management. The Committee also supervises and assesses the Company's environmental management performance. Shanghai Universal is a container manufacturing company directly under COSCO SHIPPING Development. When it comes to environmental management, Shanghai Universal is under the supervision of COSCO SHIPPING Development and, in turn, ensures that all container factories under its watch comply with environmental protection requirements. Leaders of the Party committees of Shanghai Universal and its container factories take primary responsibility for coordinating, advancing, and executing the environmental management strategies of their respective organizations.

Implementing environmental performance management responsibilities across all levels

Our environmental footprint is primarily attributed to our container manufacturing operations, which are therefore central to our environmental management efforts.

In response to critical environmental factors, we have established annual environmental management objectives, metrics, and plans, aiming to progressively enhance our environmental management performance.

COSCO SHIPPING Development focuses on new energy sources, new materials, advanced manufacturing techniques, and lifecycle management for ships, along with intelligent port upgrades. The Company fully capitalizes on opportunities brought by low-carbon, green, and intelligent transformation within the logistics sector, and leverages the integration between industry and finance to explore and implement industrial restructuring and upgrades. Actively engaging in green shipping, COSCO SHIPPING Development significantly contributes to the green transformation of China's shipping industry.

The electric ship project received external recognitions

On January 16, 2023, the Company won the award in the "Green Growth" category of the UNIDO Global Call 2022;

In May 2023, the Company won the "2022 Innovative Case Award for Shanghai Financial Leasing Industry";

In December 2023, the Company won the "Award for Innovative Achievements of the 2023 Pudong Shipping Week";

In January 2024, the Company received the title of "2023 Top 10 Assets of Central State-owned Enterprises of Vital Importance to China" by the SASAC.

Actively developing a battery charging and swapping network to promote green shipping transformation

COSCO SHIPPING Development is proactively developing a battery charging and swapping network. It aims to support the green transformation of shipping through the application and promotion of research findings and technologies in inland water transportation.

To provide charging and swapping services, COSCO SHIPPING Development founded Zero Emission Shipping Technology Co., Ltd. on October 27, 2023 in collaboration with China Merchants Group, China Energy Engineering Corporation, and affiliates of China Cheng Tong Holdings Group. Zero Emission Shipping Technology Co., Ltd. is dedicated to building a charging and swapping service system at hub ports and offering a full suite of electrification services for ships across the entire market.

In addition, COSCO SHIPPING Development has led its strategic partners in the research, development, and promotion of containerized power supply systems for ships, which have been certified by the China Classification Society and successfully delivered to customers.

For the charging and swapping network, the first batch of stations is set to be constructed at hub ports along the middle and lower reaches of the Yangtze River. Success in these areas will serve as a blueprint for expansion, enabling the network to extend to the Pearl River, the Grand Canal, Bohai Bay, the Beibu Gulf, and other inland and coastal waters across China.

China Electric Ship Innovation Alliance established to jointly forge a green and sustainable future for the shipping industry

On February 8, 2023, the China Electric Ship Innovation Alliance was established. Led and coordinated by China COSCO SHIPPING Corporation and organized by COSCO SHIPPING Development, the alliance's inaugural membership includes over 60 entities. These members span a wide range of sectors, including green power supply, batteries, electric propulsion systems, ship design and construction, system integration services, certification, ports and terminals, shore-based charging and swapping facilities, passenger and cargo ship transportation, research institutions, as well as financing and investment within the industry chain.

COSCO SHIPPING Development consistently adheres to the principles of green and low-carbon development, and actively engages in eco-friendly production. In 2023, our container factories accelerated their transition to low-carbon and environmentally friendly operations. Their efforts included replacing energy-intensive equipment with energy-efficient alternatives, advancing upgrades in production technology, deepening the transition to green energy, pioneering carbon footprint management in the container supply chain, expanding the range of green and low-carbon products, and reinforcing the shift towards green and low-carbon practices.