Quality 2019 en

COSCO SHIPPING Lines Co., Ltd.
2019 Sustainability Report
2019 Sustainability Report 2019 Sustainability Report

Content About the Report
Time frame:
About the Report 02
About COSCO SHIPPING Lines 04 January 1, 2019 to December 31, 2019
Sustainable Development Governance 06 Organization Name:

Stakeholders and Material Issues Analysis 08
Statement of the Chairman 11
Release cycle:
Service-Services Create Value13
The Sustainability Report is released annually. The previous version was issued in July 2019, and the issue date of this
Continuing to Create Economic Value Safety-Ensure Safe 21
Report is July 2020.
Development and Responsibility in Production

Parallel Guidance:
Ensure safe production
Better Services for Customers This report is referred to the Environmental, Social and Governance (ESG) Reporting Guide of the Hong Kong Stock
Exchange (released in July 2015) and is based on the Global Reporting Initiative (GRI) Sustainability Reporting
Standards 2016 and prepared by referencing the Core option.
Society-Assistance in social 25
development Environment-Environmental 36
Operation Scope：
Anti-corruption Management
Energy Conservation and Emission The entity disclosed in this report is carefully selected based on the selection criteria of "whether there is actual
Supplier Management Reduction business operation" and the overall impact of the entity on company's environment, society and governance. The
Implementing Compliance Report covers the headquarters of COSCO SHIPPING Lines Co., Ltd and 39 subsidiaries in the financial report. If there
Strict Treatment of Emissions
Requirements are special circumstances, there will be a description of the specific data statistics in the corresponding Chapter. During
Protect Ecological Environment the reporting period, there was no significant change in the operation.
Practice Charity
Definitions:
Staff-People Oriented 43
For the sake of readability, in this report, COSCO SHIPPING Lines Co., Ltd. is referred to as "COSCO SHIPPING
Occupational Health and Safety Lines", "CSL", "we" and "the company". China COSCO SHIPPING Corporation Limited is referred to as "COSCO
Employee Training and Growth SHIPPING Group" or the "Group". COSCO SHIPPING Holdings Co., Ltd. is referred to as "COSCO SHIPPING
Holdings".
Employment and Diversity
Protecting Employee Rights Data:
Employee Care The data employed in this Report are from open government outlets and internal statistical reports of COSCO
SHIPPING Lines, as well as third-party investigations, interviews and other sources.
Appendix 51
Index Table for ESG 51 Specification ：
Index Table for GRI 55 During the reporting period, the company's operating position, business form, ownership and organizational structure
Statistical Table did not change significantly.
61
Report Scope
63
Report Verification
65
2019 Sustainability Report 1 2 2019 Sustainability Report

About the Report About COSCO SHIPPING Lines
COSCO SHIPPING Lines Co., Ltd. is affiliated to China COSCO SHIPPING Corporation Limited (COSCO
Reporting principles: SHIPPING Group) and is held 100% shares by COSCO SHIPPING Holdings Co., Ltd., with its headquarters in
Shanghai. We are a one-person limited liability company and we directly and indirectly owns 42 subsidiaries
The report is prepared based on the following basic principles:
(excluding other companies with indirect equity ownership, including 39 subsidiaries within the scope of financial
report).
Materiality – The Company believes ESG exerts significant influence on the investors and stakeholders, thus the Report
should disclose any important and significant ESG matter.
Financial Performance Business Performance
Response: We disclosed the process of identifying important environmental, social and governance factors in the report,
including the identification of stakeholders, and the use of the importance matrix for the assessment of material issues. Business income 98.57 Billion RMB Container freight volume 18,784,961 TEU
Based on the communication mechanism with stakeholders and the principle of materiality, we identified important
Net profit 1.05 Billion RMB Increased by 418,853 TEU
ESG-related factors, focused on them, and disclosed corresponding measures in the report.
Total assets 99.64 Billion RMB Increase rate 2.28%

Quantitative – KPIs need to be measurable so that the effectiveness of ESG policies and management systems can be
evaluated and validated. Quantitative information should be accompanied by a narrative explaining its purpose and
impacts with comparative data where applicable.
Our core value
Response: We disclosed the environmental and social data referred to the requirements of the the Environmental,
We adhere to customer-centered, based on the safety, caring for employees, and continuous innovation. We also
Social and Governance Reporting Guide and referred to the GRI 2016 standard, then disclosed the calculation methods
establish the Employee Handbook and require our employees to be honest, patient, strictly abide by national laws,
and assumptions of the data in the report. regulations and ethics, strictly abide by professional ethics, and maintain the image of the company. In addition, we
also manage our suppliers (such as requiring them to sign the Anti-Commercial Bribery Commitment Letter, Social
Balance – The Report should provide an unbiased picture of the Company’s performance on ESG, and should avoid Standards Compliance Questionnaire, etc.) to convey our ideas and values to suppliers.
any selections, omissions, or misleading presentation that may inappropriately influence the readers on their decision
making.
Response: We promise that the information disclosed in this report is true, objective, and not exaggerated or fictitious,
Our business and operation value
which is to maximize the information that can help investors make fair and effective decisions. As one important member of the Ocean Alliance, COSCO SHIPPING Lines mainly engages in international and
domestic maritime container shipping services and related business with the operating principle of "We Deliver
Consistency – The Company should use consistent methodologies to allow for meaningful comparisons of ESG data Value".
over time. The Company should disclose in the ESG report any changes to the methods used or any other relevant
factors affecting a meaningful comparison.
Response: We used the same disclosure statistics method as in 2018 and compared the data in the report. If there is a Our supply chain
restatement, we will present it as a footnote in the report. We as a member of the shipping industry, which mainly focuses on container transportation, our upstream industry
mainly has shipping related and petrochemical industries. The former mainly provide shipbuilding and ship repair
services for us. The latter mainly provides fuel and engine oil for us. Our downstream is mainly concentrated in
External assurance: domestic and foreign trade business, involving steel, chemical, consumer goods and other industries. During the
reporting period, there was no significant change in the supply chain structure.
We invited DNV GL as the assurer to ensure the accuracy, balance, comparability, timeliness, clarity, and reliability of
the Report.
Early warning mechanism
Access: We focus on the risk management. In order to further promote the prevention of risks and unknown losses, we
established an early warning mechanism, including: early warning of changes in assumptions in the process of
Chinese and English digital versions of the Report are available on http://lines.coscoshipping.com formulating strategic objectives; uncertain tracking warning in the process of risk assessment; and warnings of risk
preference and tolerance.
Contact information: In 2019, the company began to build a risk early warning indicator - dashboard monitoring mode. Relevant
functional departments and risk management departments, as the defense first and second defense line for risk
management and control, work closely together to select key early warning indicators that reflect the company's
If you have any question about the Report, please email huangyj@coscon.com or call +86-021-35124888-211550. daily operation. In 2019, we selected 18 indicators from customer service, operation, staff and safety, etc. and set
the low, medium and high risk thresholds for each indicator. The risk management department maintains the
dashboard through the data collected from each functional department, summarizes the risk response reminded by
the indicator, completes the risk warning analysis and tracks the risk change trend.

About COSCO SHIPPING Lines Sustainable Development Governance
International initiative Social responsibility has long been part of the essence of COSCO SHIPPING Lines' cooperate culture. The Company
is a consistent supporter of sustainable and complaint development and a promoter of the balance between
The Company participated in activities of CCWG (Clean Cargo Working Group) affiliated to BSR (Business Social businesses, society, environment, and development, so as to live up to the expectations of all stakeholders including
Responsibility). We have been adhering to the CCWG's mission to actively report on the emissions of carbon
shareholders, business partners, government agencies, non-governmental organizations, etc.
dioxide, sulphides and nitrides based on our global routes, making comparison with the industry average level to
help understand our environmental performance and discover space for improvement. Besides, this provides
reference for the container transportation customer and cargo transportation agent in the process of their evaluation Internal governance
of suppliers. At the same time, we are also a member of WPCI (World Ports Climate Initiative). We have participated
in the environment ship index ESI certification initiated by it since 2012, and committed to working in environmental We are always committed to establishing sustainable strategy and strictly implementing them within the company. To
management. In addition, we also join Cargo Smart's Blockchain plan to support the establishment of a Global
Shipping Business Network (GSBN), accelerate the digital transformation of the shipping industry, and make efforts achieve the strategic objectives of the Company, we have built a strict and professional governance structure. In our
to promote the development of the shipping industry. governance structure, the general meeting of Shareholders is the highest authority and we have established the
Board of Supervisors, and the Board of Directors. The Board of Directors determines the day-to-day business
operations. Currently, the Board of Directors consists of 8 members, including 4 internal directors (including 1
employee director), 4 external directors.
Member of the association
We are a member of following international organizations: World Shipping Council, World Liner Data Ltd, Maritime We implement the general manager responsibility system under the leadership of the board of directors. Our
Anti-Corruption Network, Cargo Incident Notification System, The Baltic and International Maritime, Container
operating management consists of a marketing and major account management committee, a risk management
Owners Association，etc.. It is also a member of 30 domestic organizations including China Shipping Society
(standing councilor), Shanghai Association of Traffic and Transportation (vice president unit), Shanghai Navigation committee, a sustainable development committee, a safety committee and a supplier management committee, who
Society (vice councilor and councilor), China Association of Port-of-Entry(standing councilor), China Ship-owners support the management of business risks and compliance.
Association(standing councilor, councilor), Shanghai Ship-owners Association (vice president unit), etc..
We also includes 27 business units and 42 full-fledged joint venture subsidiaries (excluding other companies with
indirect equity ownership, including 39 subsidiaries within the scope of financial report). We implement the concept of
Management system compliance operation in the entire system to form a good corporate atmosphere.
For the sustainable development of the Company, we have developed corresponding policies and requirements
covering quality, environment, safety, and society, which become part of our code of conduct.
We has obtained the GB/T19001-2016/ISO9001: 2015 Quality Management Systems – Requirements, GB/T24001-
2016/ISO14001: 2015 Environmental Management Systems – Requirements with Guidance for Use,
ISO45001:2018 Occupational Health and Safety Management Certification, and RB/104-2013/ISO50001:2018
Energy Management Systems Requirements, etc.. On this basis, we have established quality management system,
environmental management system, occupational health and safety management system, and energy management
system.
We established the social responsibility, risk and internal control management system according to the ISO26000
Social Responsibility, ISO31000 Risk management – Principles and Guidelines, and the Basic Rules for Enterprise
Internal Control issued by the Ministry of Finance of the PRC, China Securities Regulatory Commission, the National
Audit Office, China Banking and Insurance Regulatory Commission, to fulfil our corporate social responsibility,
respect and safeguard the human rights of corporate staff and other relevant personnel, especially their rights in
health and safety, freedom, wages and benefits, and oppose any disregard and violation of human rights.
Awards
 On January 19 2019, at the FAW-Volkswagen 2019 supplier partner conference, COSCO Shipping Lines won the
"excellent partner" award for the 10th consecutive year.
 On March 6 2019, the company won the gold and silver awards of the 2018 "blue whale and blue sky protection"
project of the US environmental protection organization. Sustainable development management
 On September 19 2019, Samsung SDS logistics supplier conference was held in Seoul, South Korea. At the
For the sustainable development of the company, we established the Sustainable Development Committee,
meeting, COSCO Shipping Lines Container Transportation Co., Ltd. won the best partner award of 2019 Samsung
consisting of general manager, party committee secretary, and various department heads. They are responsible for
SDS.
formulating sustainable development policies, strategies and objectives, coordinating the resources for the
 On November 7 2109, COSCO Shipping Lines won the "Best partner award" of ZTE group, becoming the only implementation of the sustainable development policies, review and evaluate the achievement of sustainable
shipping logistics enterprise to win the award. development goals, supervise and inspect sustainable development activities, and approve our annual Sustainability
Development Report. Besides, we have assigned a vice manager to manage the sustainable development and report
 In the Lloyds list Australia maritime Awards held in Sydney, Australia, on November 14 2019, COSCO Shipping
to the General Manager.
Lines won the "2019 Australia Northeast Asia route highly recommended Award" and "2019 Australia Southeast
Asia route highly recommended Award".

Sustainable Development Governance Stakeholders and Material Issues Analysis
Sustainable development management Stakeholders Communication
We have one department responsible for specific practices related to sustainable development, including leading the COSCO SHIPPING Lines always pays attention to the demands of stakeholders, and prepare the sustainable
establishment of a sustainable development indicator system, organizing various departments to decompose and development report on the basis. According to impact of stakeholders and their dependence on the company, we
implement sustainable development indicators, leading the identification work of substantive issues, and leading the identified 10 mainly stakeholders including shareholders, customers, employees, business partners, suppliers,
report drafting work, etc.. The specific practices are regularly reported to the company’s management every year. government agencies, communities, labour union, insurance and financial institutions, NGOs, etc.. The focus of this
report is based on the substantive issues concerned by stakeholders. Therefore, during the reporting period, we have
We are committed to implementing risk management throughout the entire process of the strategy development, while communicated with various stakeholders regularly, including meetings, interviews, opinion surveys and work visits, to
highlighting key management areas and high risk areas. We have one department carrying out regular risk actively listen to their opinions and suggestions, understand the concerns and demands of stakeholders, and
assessment, identify comprehensive risks including those related to ESG, and have independent department carry out formulate and adjust relevant measures as a response.
comprehensive audit to ensure the effective implementation of governance, and ensure the company has established
an effective system for risk management and internal monitoring. Through the above measures and regular We continuously communicate with stakeholders, including regular supplier meetings regularly, conducting periodical
communication between various departments of the company, we identify and assess the risks of relevant matters customer satisfaction surveys and customer visits, communicating with NGOs, attending external seminars, and
and the importance to our stakeholders. carrying out staff opinion polls to understand the issues of interests to our stakeholders and gave feedback. On this
basis, we identify 26 substantive issues, which are divided into three levels: high, medium and light, considering the
According to the general disclosure requirements of the Environmental, Social and Governance Guidelines, we have importance of relevant issues to COSCO Shipping and stakeholders. Among them, there are 10 high-level issues, 14
included in this report the identified major environmental, social and governance issues, aiming to disclose the medium-level issues and 2 light-level issues
performance of COSCO SHIPPING Lines sustainable development in the operation process on a balanced basis.

Stakeholders and Material Issues Analysis
Stakeholders Communication Stakeholders Communication
For different substantive issues, we have defined their boundaries and established diversified responses, which are Compared with the previous year, there is no significant change in material issues and their boundaries in 2019.
listed as follows. Among them, there are three newly introduced issues: climate change and response, greenhouse gas emissions,
and employee care. Considering the importance principle of the report, the most concerned issues of these
Type of Material issues Main Bounda Corporate response Chapter index
stakeholders are also the key contents of the 2019 sustainable development report that we finally selected.
Issues stakeholders ries
Service Economic Shareholders Internal Cutting cost while increasing efficiency to enhance Continuing to create economic value
performance lean management
Indirect
Business
partners
Internal
Supporting the Belt and Road Initiative
Development
parallel
and responsibility in Building a "4S+1E" Sustainable Development Framework
economic Internal
impacts Government Developing the China-Europe land-sea express and Better services for customers
agencies Internal the China-Europe rail freight Focusing on our core business, we summarized 26 issues and established a sustainable development framework
Customer Better services for customers
satisfaction and Customers Supporting CIIE covering “4S+1E” five dimensions: Service, Safety, Staff, Social and Environment.
complaints
Insurance Conducting customer satisfaction surveys and
Customer privacy and financial improving the protection rules for customer privacy In terms of service, we mainly focus on economic performance, indirect economic impact, customer satisfaction and
protection institutions
Use technology to bring better service to customers complaints, and customer privacy protection, which has been an ongoing concern for shareholders, business
Safety Shipping safety Shareholders Internal Implement safe production Ensure safe production partners, customers and government agencies. Our annual performance in 2019 has improved compared to
Climate change Employees Internal Strict control over the transportation of dangerous Ensure safe production previous years. In addition, we have vigorously implemented the Belt and Road Initiative and supported the country's
and response goods
NGOs social activities, which has had a positive impact on social development. At the same time, through continuous
Preventing extreme whether events
Customers improvement of technology, adhere to customer first and protecting customer privacy, we actively bring better
Society Social and Shareholders Internal Fully complying with social and economic Implementing compliance requirements services to customers.
economic regulations
compliance Suppliers Internal/ Anti-corruption management
External Providing internal legal training and education
Anti-corruption Government Supplier management In terms of safety, we mainly focus on shipping safety and climate change and response. For shipping companies,
agencies Internal Carrying out comprehensive risk management
Supplier Practice charity the security of transportation services must be guaranteed, including cargo safety, ship safety, etc. At the same time,
management Employees Internal Increasing anti-corruption efforts
we continue to pay attention to the impact of extreme weather on us and actively respond.
Social welfare NGOs Establishing an anti-corruption and anti-fraud
reporting mechanism
In terms of society, we mainly focus on anti-corruption, supplier management, social and economic compliance and
Implementing strict supplier assessment and audit
social welfare, etc., to continuously meet the expectations of various stakeholders including suppliers, shareholders,
Targeted poverty alleviation
government agencies, NGOs and so on. Anti-corruption and compliance is constantly concerned by various sectors
Environm Biodiversity Governments Internal Standardized management of ballast water Protect ecological environment
ent of society. Every employee and all business must comply with relevant laws and ensure compliance and integrity.
Waste gas Communities Internal Using low sulfur oil Energy conservation and emission
emissions reduction We also pay attention to supplier management and continue to promote the concept of green supply. In addition, for
NGOs Internal Strict disposal of effluent and waste
Effluent and Strict treatment of emissions public welfare, we adhere to the practice of corporate social responsibility and actively contribute to society. In this
waste Shareholders Internal Implementing energy saving and emission reduction
Energy conservation and emission
regard, we have made many efforts in 2019 and have also achieved certain results.
Energy Internal Improving business efficiency by increasing reduction
technology reform
GHG emissions Internal Energy conservation and emission In terms of environment, we mainly focus on energy, biodiversity, GHG emissions, waste gas emissions, effluent and
Monitoring and assessing energy consumption reduction
Water resource Internal waste, etc.. The largest cost for shipping companies is energy consumption, the waste produced by which (e.g.
management Cutting GHG emissions Energy conservation and emission
reduction waste gas, oily sewage) poses the severest impacts on the environment. That is the most significant issue for both
Environmental Saving water
compliance Energy conservation and emission
shipping companies and stakeholders. Besides, the shipping course affects maritime lives, that's why biodiversity
Observing local environmental laws and regulations reduction protection is also an important issue for shipping companies. At the same time, we continue to "protect blue whales
Staff Employee care Employees Internal Enriching employee activities Employee care and blue sky" and refuse to carry shark fin related products to fulfil the protection of the ecological environment.
Employment Labor unions Internal Increase labor union communication Employment and diversity
Non- Shareholders Internal Providing employee benefits Protecting employee rights In terms of staff, we mainly focus on occupational health and safety, employment, employee care, training and
discrimination
Governments Internal/ Creating a standard, transparent hiring mechanism Protecting employee rights growth, etc.. The shipping industry is of high-risk and it is very important to protect the employees. In addition, equal
Child labor External and diversified employment principles, the protection of employee rights, training and effective development paths
NGOs Providing reasonable compensations for employees Protecting employee rights
Forced labor Internal/
Compliance with laws and regulations Employment and diversity
have always been the focus of employees. We insist on caring for employees, and actively protect the rights and
External
Diversity and interests of employees in order to fulfill our responsibilities as a "big company".
equal Internal Providing reasonable employee leaves Employee training and growth
opportunities
Internal Promoting an equal corporate culture Protecting employee rights
Training and
growth Internal Enhancing diversity in recruitment Occupational health and safety
Labor complaints Internal Providing effective, practical training for employees

mechanism
Building a multi-level communication mechanism
Occupational
Providing employee health checks
health and safety
Preparedness for accidents

Statement of the Chairman
uel consumption was reduced by 3.3% compared with the budget; the company has made full preparations for the
use of ISFO in 2020, reduced energy consumption with practical actions, promoted environmental protection and
benefited the society.
——We take the principle of more younger, international and professional to train employees, optimize the staff
management system, and implement the incentive plan, aiming to better realize the common development of
enterprises and employees.
——We have implemented the important thought of Targeted Poverty Alleviation of the Chinese government, and
fund a total of 8.88 million RMB into counterpart areas throughout the year, making due contributions to build a well-
off society in an all-round way.
The Year 2020 will be a year of integration of external development opportunities and internal model upgrading, a
key year for COSCO SHIPPING Lines to deepen integration and improve quality and efficiency, and an advanced
year for the company to realize innovation transformation and move towards higher quality development.
We will constantly to promote our globalization process, continuously optimize our capacity deployment, and better
serve our customers in the emerging market, regional market as well as the non-China related market.
We will fully cooperate with and support the construction of Piraeus port in Greece, the China-Europe Block Train
Service, the China-Europe Land Sea Express Line and new western land-sea corridor, so as to benefit the Belt and
Road Initiatives countries and regions continuously.
In the year of 2019, COSCO SHIPPING Lines entered into a new stage, on which the company has been
experiencing high-quality and connotative development on the strength of dual-brand coordination and digitalization in We will accelerate the transformation from scale to quality, perfect the global service network, and improve the
all respects. Owing to the sound guidance of ‘Lead the market, Make great changes, Create a new era’, we have put timeliness, reliability and satisfaction of customer service.
Ocean & Plus strategy into effect and made great achievements on business operation and social contribution.
We will strengthen the digital construction, improve the service integration ability, make the end-end transportation
——We handled China-US trade frictions appropriately, remained committed to the path of globalization, and more effective, and comprehensively improve the intelligent level.
delivered worldwide tailor-made services with higher quality.
We will stand strictly in accordance with the IMO rules, fully apply LSFO from January 1, 2020 to ensure
——We continued to promote the pursuit of the Belt and Road Initiative (BRI). During the reporting period, 196 environmental sustainability and company sustainable development.
vessels with a capacity 140 million TEUs and 165 shipping routes have been deployed on the related business with
partner countries or regions of the BRI, along the route of which the company has already allocated 62.5% of the total We will comply with employees' aspiration to lead a better life, fully protect and develop their legitimate rights and
capacity and 49% shipping space. interests, and practically enhance employees’ sense of participation and attainment over the course of corporation
development.
——We gave priority to the solution on the pain points of our customers and further improved the service experience.
We got nearly full score on service targets such as booking confirmation within 2 hours and Timely documentation. The Year 2020 is the end of China's all-round fight against poverty. We will spare no effect in poverty alleviation and
Our excellent schedule reliability, recognized by a third-party, ranked COSCO SHPPING Lines third among the global earnestly fulfill the enterprises’ social responsibility.
liners. The roll-out of Global Liner Schedule Reliability enhanced the leadership of the company in the shipping
industry. The annual score on customer satisfaction was 88.68, registering a progress compared with the result in The Covid-19 pandemic outbreak in the late January 2020 disrupted our normal work and life. In this regard, while
2018. doing a good job in the pandemic controlling and life safeguarding of employees, we have firmly fulfilled our social
responsibility, fully demonstrated the responsibility of State Owned Enterprise, and gained good repercussions at
——We kept our finger on the pulse of technology trends and acted with courage to explore continuously. By virtue of home and abroad. Before the end of the pandemic, we will consistently protect our staff, deeply understand our own
block chain technology, new breakthroughs were steadily made on GSBN products. The implication of digitalization responsibility and mission, firmly maintain our country external trade stability, and work hard to solve the difficulties
was enriched by the application of IOT on reefer container, domestic trade smart pricing system and construction of e- of customers in the global shipment. We will also do our best to provide support and help to our global customers,
business platform. partners and interested parties.
——We innovate the service mode and further develop the end-to-end business. Tesla project has become the kick- Calm is the tide and the banks are broad, gentle is the wind and the sail is stretching. In 2020, COSCO SHIPPING
off of digital global logistics solutions. The China-Europe Block Train Service and the China-Europe Land Sea Express Lines will be resolute to cut through the wind and waves on the high-quality development way towards a better future!
Line have deepened the construction of new international land-sea corridor. Horgos - East Gate Special Economic
Zone Land Port Project has consolidated the important logistics foundation of the Silk Road economy. Yang Zhijian
—— We will further consolidate the new advantages of low-carbon and green development. The whole year fleet fuel Chairman
July, 2020
Services Creates Value
COSCO SHIPPING Lines adheres to economic development
by continuously improving containers and improving service
quality, bringing better experiences to customers, maximizing
returns to shareholders, employees, partners, customers,
etc .; and contribute its own strength to society and to the
world, which has a positive impact on the countries and
regions where the business premises are located worldwide.

Continuing to Create Economic Value Development and Responsibility in Parallel
As a leading company in industry, COSCO
SHIPPING Lines always adheres to globalization
403 container ships
（owned and controlled）
development, playing an important role in
supporting the Belt and Road Initiative, and
continuously contributes to national and public
9 branches in China
activities.
255 international routes
Supporting the Belt and Road Initiative
As of November 30, 2019, we owned and controlled

146 domestic routes
403 container ships; operated 401 container liner
routes, including 146 domestic routes (including the
Case: Kazakhstan delivers corns to China
Yangtze River and the Pearl River shipping services)
through dry port
and 255 international routes (including international
feeder services), covering the Americas, Asia Pacific,
On December 23, 2019, about 1,000 tons of Kazakh
Latin America, Africa, Europe, Mediterranean,
corns were exported to Urumqi, China in 32 train
Southeast Asia, Japan and South Korea. There are 9
containers through the dry port. It was the first batch
port branches in mainland China: Dalian, Tianjin,
CSL： Business revenue output of Kazakh corns since the first test of 60 tons
Continuing to create economic value Qingdao, Shanghai, Ningbo, Xiamen, South China,
during 2018 and 2019 of transportation to China by truck in October.
Hainan and Wuhan, 9 overseas port branches across
In 2019, the continuing trade friction between the 100.00 98.56 Europe, North America, Southeast Asia, West Asia,
Almaty, one of the main producing areas of Kazakh
United States and China added the uncertainties in South America, Australia, Japan, Korea and Africa.
corns, is adjacent to the border between China and
world trade relations. COSCO SHIPPING Lines has 95.00 There are more than 400 domestic and overseas
91.37
Kazakhstan. The dry port is located in the crucial
been dealing with external challenges while cutting service networks.
position of transportation from Almaty to China. Since
costs, actively facing market challenges and seizing 90.00
China and Kazakhstan reached a corn trade
market opportunities. During the reporting period, the During the reporting period, COSCO SHIPPING
agreement at the end of 2018, the dry port continued
company's overall benefits remained stable 85.00 Lines has positively implemented the Belt and Road
tracking target customers and coordinated Altynkol
compared with 2018. Initiative. We deployed about 196 container vessels
station and Khorgos station to solve operational
80.00 (1.40 million TEUs of carrying capacity) in the
problems, and finally delivered the first transportation.
During the reporting period, COSCO SHIPPING countries along the Belt and Road Initiative corridors,
It was a milestone shipping, which marks a historic
Lines handled 18,784,961 TEUs of container 75.00 accounting for about 62.50% of the company's total
2018 2019 step of the dry port in the development of eastbound
shipping, up 2.28 % from 18,366,108 TEUs in 2018. vessels . We actively developed China-Europe
container logistics services while providing strong
The business revenue reached RMB 98.57 billion, an railway express and China-Europe land and sea
Business Revenue support for the multimodal westbound container
increase of 7.88 % from RMB 91.37 billion in 2018. RMB:Billion express. By the end of 2019, COSCO SHIPPING
shipping via China-Europe (Asian) land and sea
The net profit attributed to the owners of the parent CSL：Container freight volume during 2018 and Lines operated 26 China-Europe railway express
express.
company accounted for RMB 1.05 billion, an increase 2019 lines and during the reporting year, a total of 427
of 25.84% compared with RMB0.83 billion in the trains departed from China, covering Hunan, Shaanxi,
In the future, the dry port will keep improving corns
same period in 2018. 19,000,000 18,784,961 Shandong, Jilin, Liaoning and Sichuan, transporting
shipping mode and optimize the transportation details
32,027 TEUs of freight.
18,366,108 to deliver more eastbound containers through the dry
In 2019, the average revenue from single container 18,500,000
port.
of international lines was USD 888.24 /TEU, an Meanwhile, as a new symbol of the Belt and Road
increase of 1.90% compared with USD 871.64 /TEU 18,000,000 Initiative, China-Europe land and sea express has
in 2018. The average revenue from single container passed through Greece, North Macedonia, Serbia,
of domestic lines was RMB 2,161/TEU, an increase 17,500,000 Hungary, Slovakia, Austria and Czech, with a
of 4.90% compared with RMB 2,060 /TEU in 2018. distance of about 2,000 kilometers. In 2019, COSCO
17,000,000 SHIPPING Lines delivered more than 82 thousand
TEUs with China-Europe land and sea express,
16,500,000 representing a year-on-year increase of 64%.
16,000,000 Since implementing the Belt and Road Initiative, the Company has been strengthening cooperation with local
2018 2019 governments, which greatly facilitated local economy and gained good effects as well as wide recognition from
Container freight volume: TEUs
the public.
Development and Responsibility in Parallel Better Services for Customers
COSCO SHIPPING Lines is committed to providing In 2019, COSCO SHIPPING Lines launched "My
customers with the best quality services. This Reefer" service on its e-commerce platform, allowing
includes not only creating a new look for its customers to clearly know the real-time location,
products, services and operations with the help of transportation track, temperature, and humidity
technology, but also adhering to the concept of changes of refer containers online, so as to provide
customer first, providing customers with high customers with better transportation services.
standard services, and actively handling customer
complaints and always protecting customer privacy.
Master "fresh", ice cream comes
Technology improve services
In 2019, COSCO SHIPPING Lines provided
COSCO SHIPPING Lines adheres to the operating
customers with door-to-door cold chain transportation
principle of "we deliver value". In the process of
service for the ice cream business from factory to
development, it always keeps in mind the original
factory. Refrigeration was required for the whole
aspiration of serving customers and creating value,
transportation process and its temperature needs to
and constantly improves its operating strengths.
be kept at minus 18 degrees. The transportation
While handling goods with special requirements for
covered two return routes from Tianjin to Guangzhou
storage, transportation, loading and unloading during
and from Guangzhou to Tianjin. While serving
container shipping, which are quite often during
Supporting CIIE customers, it delivered "ice cream" to different
operations, COSCO SHIPPING Lines keeps
Case: Philippine products shipped smoothly regions around the country.。
China held the second China International Import Expo improving its products and services according to
(CIIE) in 2019. For the transportation of exhibits, customers' needs to deliver better transportation.
service providers are required to have strong During the second CIIE, the Philippines organized 38
As of 2019, COSCO SHIPPING Lines' reefer
transportation organization and carrying capacity as exhibitors to participate in the Expo. The exhibits
container trade zone had been established for one
well as reliable, flawless services. COSCO SHIPPING included a variety of featured agricultural products,
year. During the year, the company continued
Lines, who has rich experience, made great such as dried bananas, dried durians, coconut juice,
optimizing its reefer container technology, adopting
contribution to CIIE with its years of practice and coconut oil and pineapples, which are popular with
leading technology and providing sincere services to
meticulous service culture. the Chinese people.
ship fresh food all over the world to more people
During the second CIIE, the transportation services timely.
After obtaining the exhibition information, COSCO
provided by COSCO SHIPPING Lines covered Italy,
SHIPPING Lines (Philippines) Inc. immediately took Fruits, vegetables and other fresh produce are
Japan, South Korea, Taiwan, France, Indonesia, the
action to develop a more completed supporting common goods in reefer container shipping, which
Philippines, the Republic of Vanuatu and more
scheme covering many links such as food-grade requires short-term and high-efficiency transportation
countries and regions. The exhibits transported include
container source, warehouse packing, space booking, as well as strict and effective storage. COSCO
household appliances, kitchenware, cosmetics, auto
terminal site, and set up a special working group with SHIPPING Lines uses Control Atmosphere (CA) COSCO SHIPPING Lines also strengthens the
parts, lighting equipment, solar panels, as well as foods
the cooperation of sales, customer service, site, technology to provide active and passive CA services, development of special containers. By 2019, it has
requiring high-quality fresh-keeping transportation,
extended business and other departments. With the which can effectively inhibit the respiration of fruits developed and provided a variety of ultrahigh special
such as bakery products, wine, coffee, etc.
joint efforts of the team, the Company gained the trust and vegetables and retard their growth by adjusting containers.
Relying on its strong transportation capacity and global of the Ministry of Industry and Trade of the and controlling the proportion of oxygen, nitrogen
network, the Company provided tailor-made services by Philippines, and remained the forwarder of their and other gases in the container. In addition, the Specifically, the 20-foot ultrahigh coal container
developing specific plans based on the features of exhibits. In the process of organizing the shipment of ASC mode, a kind of multi-stage temperature control adopts a folding design and allows customers to pack
exhibits and providing the transportation environment exhibits, the CIIE working group of COSCO mode, is adopted to automatically change the in any angle. With its unique space design, it has
as required. SHIPPING Lines (Philippines) operated efficiently, temperature of reefer container based on the actual obtained two utility model patents from the National
actively communicating and tracking the whole maturity of fruits and vegetables to adjust the Intellectual Property Administration, and certified by
In the freight forwarding process, the Company realized
process, ensured timely shipment and delivered the maturity level with stable changes during the voyage, China Academy of Railway Science.
a 24/7 service mechanism to ensure seamless docking
exhibits at the site of the Expo in time. so that they can present the best state when arriving
and efficient cooperation during the loading/unloading
at the port. Besides, Cool Treatment technology and
with feeder ships, transshipment at transit ports and
In the future, COSCO SHIPPING Lines will keep its service can kill fruit flies at continuous low
loading with trunk ships, so as to transport the exhibits
original aspiration, continue optimizing its service temperature without frostbiting the cargo, so as to
to the CIIE site safely and efficiently. Our services
model, smoothing its logistics channels, and meet the quarantine requirements.
gained the favor and praise of many exhibitors.
contributing to the development of Global trade

In terms of shipping on-time rate, COSCO's self-
Better Services for Customers Case: Customer visits by the service teams
operated ships in 2019 is 96.59%, which is 1.38%
In order to timely understand what customers think higher than that in 2018.Through such adjustments,
and want, our domestic and foreign customer service we hope our service standard will be higher and
teams visited customers regularly and frequently requirements stricter, so as to provide customers with
(domestic branch: four times a month; overseas: two better services.。
times a month) during 2019 to seek customers' Case ： Ningbo Branch of COSCO
opinions, solve their problems in time and improve SHIPPING Lines constantly improves service
customer satisfaction. By the end of the reporting standards with practical actions
period, there were 1010 visits to customers in China The customer service department of COSCO
and 1393 customer visits overseas, from which 931 Shipping Ningbo Branch focuses on the three main
service issues were sorted out and classified as 72 work lines of document quality, service quality and
items in 14 categories, which will be the bases for process optimization, optimizes the internal operation
further assessment of service improvement. process and continuously improves the customer
service level.
Customer privacy protection Grasp the quality of documents and
strengthen the prevention of risks
It is the duty of COSCO SHIPPING Lines to protect The customer service department of Ningbo branch
customer information and respect customer privacy. implements the "three checks" mechanism of document
In 2019, we made constant efforts to improve quality. Through the self-examination, spot check and
customer privacy protection and prevent any loss or supervision of BPs, we establish self-inspection projects
illegal use of customer information. The Company for key points, risks, mistakes and omissions in the
clearly stipulates in the Comprehensive Management business, and business problems encountered
The 20-foot ultrahigh bulk grain container can store Customer complaint and satisfaction
periodically and conduct self-inspection regularly.
more goods due to its ultrahigh feature, and its design management Manual that it will protect the business secrets and
Through self-examination and rectification of problems
facilitates the loading of goods from the top. Being privacy of customers.
found, we have standardized the business processes
waterproof and moisture-proof in the process of In 2019, COSCO SHIPPING Lines conducted a The Company signed confidentiality agreements with such as export signing, import order replacement, and
transportation, it can prevent the expansion of the customer satisfaction survey and distributed 2,479 contract number changes, so as to strengthen the risk
customers, promising to keep confidentiality of
container, thus effectively and safely shipping grains. questionnaires worldwide, including 1,605 copies in prevention capabilities of documents and enhance
contract contents including but not limited to terms
China and 874 in other 76 countries and regions. and conditions and freight rates. When customer service capabilities.
Besides, there are 20-foot multi-purpose ultrahigh Finally, 2,295 effective questionnaires were returned, information is needed, the Company will explain the Carry out regular customer visits
containers and second-generation car frames. These among which 1,605 were from China and 690 from reasons and purpose. The Company has made
special containers have been used widely since 2019, overseas. According to statistics, the customer In 2019, the customer service team of Ningbo branch
promise not to share customer information with
which makes profits for the company and provides satisfaction index in 2019 was 88.68, which was developed the visiting mechanism and organized the
others except for its employees, agencies authorized
better services to customers through technology reform, improved compared with 88.03 in 2018 and 87.94 in communication skill training for customer managers,
by the customers, partners or subsidiaries, nor
realizing the value of transportation. 2017. further strengthened the customer visiting work of the
disclose or sell information of customers or potential
headquarters and branch companies. Through daily
customers.
In the next few years, COSCO SHIPPING Lines will visits, the customer service team understands the needs
From January to October 2019, COSCO SHIPPING
continue improving and optimizing its products and During 2019, the Company did not receive any of customers, so as to publicize 9 service standards and
Lines received two customer complaints (one from
services, leverage more technologies to develop itself, customer complaints due to violation of customer e-commerce functions to customers, and improve
domestic trade and the other from foreign trade), 578
privacy. customer experience.
insist on innovation and improve its competitiveness. customer concerns (386 from domestic trade and 192
from foreign trade), and 18,010 consults (5,634 from Providing high-standard services to customers Implement micro innovation mechanism
Customer first domestic trade and 12,376 from foreign trade). In 2019, the customer service department of Ningbo
Compared with the same period in 2018, the number In 2019, CCOSCO SHIPPING Lines improved service
Branch continued to implement the micro innovation
of complaints decreased by 71%, which is contributed standards worldwide covering the whole process of working mechanism, and encouraged employees to put
In order to ensure a well service experience for
by our multi-channel collection of customer needs international liner shipping services. For space forward effective suggestions in the aspects of
customers, the company always adheres to nine
around customer pain points to improve services one booking, the target of booking confirmation timeliness optimizing business process details, simplifying
service standards, and constantly improves
by one during 2019. was increased to 98% from 95% in the previous year. operation steps, improving system functions, and
requirements on this basis. At the same time, we
For issuing bill of lading, we put forward the service discovering potential risks, so as to realize the personal
regularly conducts satisfaction surveys on customers to
For customer complaints, the Customer Service standard that "the original bill of lading will be ready value of employees. In 2019, in response to the
understand their needs and constantly complete self-
Department of the company and the customer service within one working day after the vessel departure", problems encountered during the IRIS4 system
improvement. The company also adheres to protecting
staff of each site carefully analyze the reasons, and shortened the time of completing the sample to switching process, the customer service department of
the information security of customers and regards this
the target of 8 working hours after receiving the the Ningbo branch actively explored and tapped new
as its own responsibility. actively carries out measures to improve after
customer's order in internal tracking, so as to issue system functions to effectively solve practical business
determining the responsibility, and follow up the
the bill of lading faster according to customer problems. While steadily advancing system switching, it
communication with customers, not only letting
requirements. improved service standards and customer experience.
customers get satisfied results, but also avoiding
similar problems in the follow-up work
Ensure Safe Production
Any safety incidents with a company will affect its operating
performance and can have adverse effects on the entire
organization and even its country. Therefore, we must fully
understand and control the dynamic situation of production
safety of the Company, strengthen supervision while making
efforts to prevent extreme weather events and pirate attacks
to ensure safe production.
Ensure Safe Production We have formulated the Instructions on Prevention of
Typhoon and the Regulations on the Prevention of
Flood and Typhoon and established prevention and
emergency mechanisms.
Each year, we conduct guidance on flood and

typhoon prevention, make predictions of typhoons,
strengthen safety inspections to ensure zero safety
risks, and deploy tasks to clarify the responsibilities
of all relevant personnel.
The company's "General Duty Room / Emergency

Command Centre" is the control command centre,
which is responsible for the company's coordination
The shipment of dangerous goods
and command work. All relevant departments and
subsidiaries should promptly report to the centre in
accordance with regulations. The International Maritime Organization (IMO) has
formulated the International Maritime Dangerous
Goods Code in order to ensure the safe shipment of
Pirate attacks dangerous chemical goods and to protect the marine
environment from pollution. As the shipment of
dangerous chemical goods features a long shipping
In addition, we carry out a full range of training and
Ensure safe production Pirates attack frequently in the Middle East, from the period and many links, and the weather and sea
emergency drills related to safe production every year conditions change rapidly during the shipment, the
south end of the Red Sea, the Gulf of Aden, the
We strictly follows the rules and regulations on safe to strengthen production safety management. supervision and management of shipment safety of
Arabian Gulf to the Indian Ocean, and from the
production such as the International Safety dangerous chemical goods is a long-term, complex
Somali coastline to the Indian coastline. In order to
Management Code for the Operation of Ships and for In 2019, in order to continuously improve the safety and arduous work. Therefore, we keep improving the
ensure navigation safety, we adhere to the principle
Pollution Prevention （ ISM code ） Production Safety management level of container transportation business, sense of responsibility of practitioners and their
to "prevent first, stay alert, use our own resources,
Law of the People's Republic of China and the to truly understand the performance of ship leaders and competence to ensure safe shipment.
prepare in advance, act promptly, and stop pirates
Regulations on the Reporting, Investigation and crew members on board and the implementation of
from boarding".
Handling of Work Safety Accidents. COSCO SHIPPING rules and regulations, and to solve the practical We have formulated the Operation Procedures for
Lines sign the Letter of Responsibility for Safe problems of ship management on board, designated the Acceptance and Carriage Confirmation of
We analyze the areas with frequent pirate attacks
Production every year, making safety performance an staff ashore were required to conduct vessel safety Dangerous Goods, defining the entire process from
and identify the key anti-piracy areas. Before
assessment standard and the assessment results will inspection on board. A leading group for safety customers' applications for space booking to the
entering piracy-prone areas, we will employ a third-
be directly related to the salaries of management. inspection were assigned to make on-board safety transportation of goods, and strictly implement the
party armed escort team to conduct 24-hour, all-
Every year, we carry out comprehensive risk inspection plans, clarify the inspection contents and operation procedures. For example, when we receive
round, dynamic tracking and monitoring on our ships.
management covering production safety, prepare risk implementation requirements, as well as summarize the customer inquiries or applications regarding space
The captain will ask the crew to get prepared and
management reports ， then present to the Board of defects founded and track the rectification. booking for dangerous goods, our staff will check
stay alert, and provide antipiracy alarm signals and
Directors and management layer for review . During whether the products provided by customers are
contact information.
daily operations, we report production safety Extreme weather events listed as dangerous goods. If they are classified as
management regularly. dangerous goods, we should check their specific
We also have a safety cabin, which is designed to
We have formulated documents such as the Safe Typhoon has brought great risks and challenges to ship provide the crew with shelter and a retreat place in categories and UN numbers and classify them as
Production Management Measures, the Safety navigation and safe production around terminals. The case of threat or damage from armed pirates, so as prohibited or restricted goods according to the
Management Responsibility Provisions and the coastal areas of China are typhoon-prone areas, and it to ensure their personal safety and basic needs. Company's policies, then determine the
Comprehensive Emergency Plan for Safe Production, is very common for south-eastern coastal areas to be transportation paths. During the shipment, the
which regulate important matters to be observed in hit by typhoons every year. In addition, we also organize regular anti-piracy dangerous goods should meet the requirements of
production activities as well as the responsibilities of training and emergency drills, including the use of loading/unloading and isolating.
relevant departments. In daily operations, the Safety Therefore, we adhere to the principle of "prevention is safety cabin, anti-piracy measures, emergency
Management Committee of the Company, composed of priority, readiness in advance, escape if necessary, and procedures and the safe use of anti-piracy equipment. During daily operations, we also carry out training
leaders and the principal of each functional department, prepare for unforeseen circumstances", and collect related to the transportation of dangerous goods on a
is responsible for communicating relevant requirements precise typhoon information by making use of regular basis, explaining the acceptance and carriage
and instructions and implementing safe production. advanced technology related to the high altitude, conditions and cautions of dangerous goods, and
ground and global meteorological information network. sorting out the problems encountered, so as to
ensure safe production

Assistance in Social Development
"Compliance development" has always been a issue of
concern to the company itself and various stakeholders.
COSCO SHIPPING Lines adheres to the implementation of
anti-corruption, improves procurement and supplier
management, ensures the legal compliance of transactions,
and continuously promotes healthy, good and sustainable
development. At the same time, while focusing on
sustainable development, COSCO SHIPPING Lines adheres
to social welfare and actively fulfills its corporate citizenship
responsibilities.

Establishing reporting channels In addition, we have been promoting the anti-
Anti-corruption Management The Company has set up independent
corruption work of upstream and downstream
enterprises, by conducting regular assessments on
departments to handle reporting letters and visits.
suppliers, requesting suppliers to fill in the letter of
We have a hotline and E-mail for anti-corruption
anti-commercial bribery commitment and the social
reporting to encourage employees to disclose
norms compliance questionnaire. We prohibit
corruption. We promise to protect whistleblowers,
business activities with suppliers who have violated
including protecting their personal information,
rules and regulations. COSCO SHIPPING Lines
protecting them from discrimination and dismissal
consistently contributes to the healthy development
for reporting. The Company's independent
of the industry.
departments shall handle every reporting letter and
visit seriously, with the promise to investigate
Anti-corruption activities and education
report clues, to hold people accountable for The Company regularly promotes anti-corruption and
verified problems, and to close supervision provides training for all employees.
loopholes. In addition, the illegal behaviors shall be
transferred to the relevant departments for During the reporting period, , COSCO SHIPPING
handling according to the actual situation. For Lines actively participated the activity of "the month
major cases, the handling results will be reported of probity education" held by its parent company.
to the company's management or the board of During the activities, COSCO SHIPPING Lines
directors as required . organized employees to answer questions about anti-
corruption and probity through online platforms or in
During 2019, COSCO SHIPPING Lines accepted written forms to enhance employees' anti-fraud
Anti-corruption management has been a constant The Company has been promoting the construction of
54 reporting letters and clues, and 4 of the cases awareness. We also organized employees to visit
concern to all sectors in the society, including our policies to specify and improve regulations and
were filed. After discipline review, 3 CPC members education bases and theme exhibitions to make full
stakeholders such as customers and suppliers. COSCO guidance for anti-corruption.
were expelled, 2 were left for inspection, 1 was use of the cultural resources of the locations where it
SHIPPING Lines has always carried out anti-corruption
given serious warnings, 10 were admonished, 20 operated. In the meantime, COSCO SHIPPING Lines
into its daily operation. In order to carry out anti-corruption effectively,
were reminded, 2 were removed from also held an exhibition of anti-corruption and probity
COSCO SHIPPING Lines has signed the letters of
As of December 31, 2019, the Company has administrative positions, 1 was demoted, 3 were art works, in which employees could actively
commitment and responsibility on anti-corruption and
established a sound anti-corruption management transferred from their posts, 1 was suspended from participate to achieve better effects. During the event,
probity to implement and delegate anti-corruption
mechanism, including improving management system his post, 3 were notified, 1 was criticized and COSCO SHIPPING Lines selected 122 excellent
management work.
and, establishing reporting channel, conducting regular educated, 4 were ordered to make written works by staff and made exhibition boards and
supervision and audits, as well as anti-corruption inspection. Illegal funds of RMB 168.6 thousand brochures for display within the company.
Currently, the Company has set up independent
activities and training. In addition, the Company stays yuan was refunded and compensated, and RMB
departments to implement anti-corruption policies.
22.9 thousand of performance-related salary was The Company strengthened anti-corruption training
in strict compliance with the laws, regulations and The independent departments of the company
deducted as fines. for all employees through group learning, seminars,
industrial norms of the location where it operates, such supervise the lawfulness and compliance of the
and intensive discussions. In 2019, COSCO
as the United Nations Convention against Corruption, performance of operation and management Regular supervision and audits SHIPPING Lines organized a total of 107 learning
the Anti-Money Laundering Law and the Company Law personnel (including those with relevant powers) in
Every year, the company carries out comprehensive sessions for the theory learning central group of the
to put an end to bribery and corruption in any form. We accordance with the policies and regulations, and
audit work and comprehensive risk identification and CPC Committee within its system, in which 2,601
have been managing illegal actions at the outset strictly adhere to the principle of seeking truth from facts and
assessment work covering corruption and fraud, so members participated. It also held 11 Party lectures,
according to laws and corporate rules and regulations. complying with the regulations, so as to promote the
as to find out the defects and deficiencies of the in which 154 employees attended, as well as 49
unity of the internal management mechanism and the
And we have joined the Maritime Anti-Corruption company in anti-corruption practice. The audit work is lectures on case warning and education, with 1,599
corruption prevention system of the enterprise.
Network (MACN) to work with fellows in the industry to performed by independent departments, including participants. We purchased and distributed 959
Through supervision, the company timely finds out
eliminate any form of corruption within the industry. internal and external audit. The problems found in books related to probity. The training and learning
violations of regulations, puts forward suggestions on
the audit work will be dealt with in accordance with activities were attended by management and
the basis of analysis of causes, and clarifies rewards
Improvement of management system company policies, and the defects will be ordinary staff and achieved good results.
and punishments. The company has also established
implemented by the inspected department. The risk
COSCO SHIPPING Lines has developed directive an effective mechanism for handling bribery and We not only focus on anti-corruption, but also
assessment work is led by independent departments
documents to clearly regulate the Company‘s anti- corruption cases. For example, the Company has incorporate the requirements for preventing extortion,
and assisted by relevant departments. For the results
corruption work such as the Implementation established the Emergency Response Plan for fraud and money laundering into the daily
of risk assessment, the responsible departments
Management Method of Audit Opinions and Commercial Bribery. In case of emergency, all assessment of employees. We stay in strict
actively put forward risk response plans and
Suggestions of COSCO SHIPPING Lines, Guiding departments shall coordinate to deal with it in a timely compliance with laws and regulations of the location
implemented them continuously. Audit work and risk
Opinions on Serious Business Discipline. During the manner. At the same time, the company has clarified where we operate by checking erroneous ideas at
assessment work are regularly reported to
reporting period, the Company also updated and the principles of rejection of gifts and the procedures the outset, and constantly help enterprises develop in
management or the board of directors .
improved the directive documents such as for registration, reporting and disposal among all a clean, healthy and sustainable way.
Administrative Measures on the Transfer of Clues employees in order to establish a clean internal
Found by the Audit of COSCO SHIPPING Lines. culture. During the reporting period, COSCO SHIPPING Lines did not have any legal proceedings for bribery, corruption,
extortion, fraud, or money laundering, and there were no incidents of dismissal or disciplinary actions against
employees due to corruption.
Supplier Management The Company grades suppliers based on the Risk assessment and regular audits
evaluation results, terminate cooperation with
suppliers whose ratings do not meet the Comprehensive risk assessment are carried out in
requirements, and implement supplier blacklist COSCO SHIPPING Lines, and dedicated
management to record major violations, so as to departments and personnel will lead the risk
continuously optimize the existing supply assessment of supply chain management, which
structure, ensure a high-quality system and involves procurement behaviors, supplier selection,
reduce the risks in the supply chain. supplier assessment, and data maintenance. Internal
professionals will grade the importance of the risks
At the same time, the Company has been actively and form a standardized risk list. For highly important
promoting green supply chain management by risks, the mainly responsible department will
fully considering the impact of the selected formulate countermeasures and regularly track the
schemes, suppliers and products in the implementation of those measures.
procurement on the surrounding environment and
personnel. Specifically. The Company chose The Company also performs annual external audits
more environmentally-friendly, low-carbon and and regular internal audits, reviewing the compliance
energy-saving products and services over others of procurement behaviors, supplier access,
in procurement, and adheres to a zero tolerance effectiveness of evaluation, and integrity of data to
and one-vote veto policy towards suppliers who monitor the implementation of supply chain
caused safety incidents. The Company also management by relevant departments. For the
As the supply chain management issues gradually The Company strictly implements supplier included green supply in the aforementioned problems found during audit, the auditor will
attract the attention of the public, including suppliers management and procurement based on the existing supplier evaluation to ensure effective communicate with the related departments
and customers, COSCO SHIPPING Lines keeps rules to ensure the effectiveness of the supplier implementation, regular supervision and concerned to get the rectification plan and supervise
improving the its supplier management system by management mechanism. promotion. During the reporting period, the its rectification progress.
increasing the weight of sustainable development in the Company also actively participated in external
process of supplier access, evaluation and procurement, Procurement and supplier training to improve its professional ability and Since February 2019, COSCO SHIPPING Lines has
so as to effectively reduce relevant risks and improve management operating efficiency while reducing business risk. carried out monthly sampling inspections on the
the competitiveness of the supply chain. In 2019, the supplier management of the headquarters and its
The supplier management of the Company includes CSL actively participates in external
Company continued strengthening and promote subordinate units. The inspection contents include
supplier access, evaluation, rating, reward and training
sustainable, green supply chain management through whether the supplier's admission is in compliance
punishment. The Company has designated
establishing system specifications, implementing and the qualification is qualified. As of the end of
professionals to take the lead in supplier
supplier management, as well as conducting risk In March, May and June 2019, COSCO December 2019, the inspection had covered a total
management and relevant departments shall
identification, regular supervision and audits. SHIPPING Lines participated in the special of 218 suppliers.
cooperate with them. To evaluate new suppliers, the
training lectures on procurement held by China
Clear rules and regulations in Company considers their ability and level of
Bidding Procurement Training Network and During the reporting period, the company's supply
compliance with laws and regulations and sustainable
management Beijing Zhongpei Guoxin Education and chain structure has not changed significantly. As of
development. All suppliers need to fill in the Anti-
Consulting Center on behalf of COSCO December 31, 2019, the total number of suppliers of
During the process of procurement of supplier Commercial Bribery Commitment Letter and the
SHIPPING Group. The training covered COSCO SHIPPING Lines is 10,637. Among them,
management, the Company complies with the laws and Social Criteria Compliance Questionnaire, which
procurement and bidding management of state- the distribution of domestic suppliers is 8,756, the
regulations of each operating location, such as the Law covers specific requirements for anti-corruption and
owned enterprises, system optimization and distribution of overseas suppliers is 1,881.
of the People's Republic of China on Tenders and Bids, anti-commercial bribery of suppliers as well as
contract risk prevention, and agency service
Regulations for the Implementation of Bids, Regulations assessment and consideration of supplier in
schemes in non-bidding procurement. COSCO Supply chain management plays an important role in
on Engineering Projects Requiring Bids. Besides, the environmental management, health and safety
SHIPPING Lines’ headquarters and relevant staff the sustainable development of a business. We will
Company has established regulations including the management, compliance with laws and regulations,
participated in the training and extended the continue strict control of the procurement process,
Basic Procedures for Competitive Procurement, the human rights management (e.g. child labor and
knowledge of procurement, supplier management implement green supply, adhere to the establishment
Basic Procedures for Non-Competitive Procurement, forced labor), and supply chain management.
and more aspects. of a sustainable supply chain management system,
the Measures for the Management of Suppliers, and the Suppliers can be included in the supplier base only
CSL: Distribution of Suppliers and strive to provide strong support for the
Measures for the Management of Procurement to after they pass the qualification examination.
international shipping supply chain.
provide clear guidance and specifications for supplier
and procurement management, and update and The Company regularly evaluates suppliers at least
once a year. In addition assessing a supplier's service 1,881
improve regularly. During the reporting period, the
Company updated the documents such as ability and product quality, the Company also pays
Implementation Rules for New Container Operations, to attention to the environmental security and personal 8,756
ensure that the existing documents can meet the latest safety performance of the supplier, and continues
external policy requirements and the actual internal promoting the concept of green supply, environmental
operations of the Company. protection and sustainability in the supply chain
management. Domestic：number Overseas: number
Implementing Compliance Requirements Legal training and education The Company regularly conducted comprehensive
risk identification and assessment from five
COSCO SHIPPING Lines has an in-house perspectives of strategy, market, finance, operations
department and legal staff responsible for and legal position, covering ESG-related risks, anti-
promoting the rule of law, including establishing corruption related risks and risks that might be
relevant directive documents, following external involved in the whole business process.
policies, and providing legal training and
education around the Company. The Company The Company evaluated the risks identified one by
continuously follows the changes in laws, one, drew a risk heat map, and promoted all
regulations, and policies in the locations where it departments to establish risk response measures to
operates, and timely identifies policy and ensure the effectiveness and feasibility of the risk
regulation updates related to its business management and internal control system. The
operations, and prompt subordinate companies to Company's risk management work is reported to the
take effective actions as necessary. Board of Directors and the Management, and
The Company provides legal training within the progress of risk management in the previous year is
organization every year to improve employees' assessed regularly.
awareness of the rule of law and legal literacy,
In 2019, COSCO SHIPPING Lines introduced a new
and create a good culture of legal compliance
risk assessment system. The system provides
around the Company. In December 2019, the
detailed risks and the specific responsible
Company's headquarters and subsidiaries
departments to promote efficient management of
actively participated through online platforms.
risks. During the reporting period, the Company also
Social and economic compliance is the premise of the The topics covered the Constitution, criminal law,
Anti-monopoly actively pushed forward risk warning indicators, with
company's sustainable development, and stakeholders civil law, corporate law, maritime law, anti-unfair
designated professionals to be in charge of detailed,
including investors, suppliers, customers, governments The Company is always committed to anti-improper competition law and more, which enhanced
feasible indicators for each risk to promote the
and employees continue to pay attention to it. COSCO competition and anti-monopoly. During the reporting employees' awareness of the rule of law and
establishment and improvement of the risk warning
Shipping has always attached great importance to period, the Company adheres to related laws and legal literacy.
mechanism.
social and economic compliance, resolutely put an end regulations, and promotes an orderly and fair
Comprehensive risk management With the increasing importance of compliance
to illegal activities, and ensure the healthy, good and competition in the industry. The Company
sustainable development of the company. continuously follows and timely updates changes in COSCO SHIPPING Lines continuously management, COSCO SHIPPING Lines will continue
international anti-monopoly policies and regulations, implements risk management and internal control to improve its social and economic compliance and
Management of related party and adopts follow-up measures actively. within the system. Based on the internationally help the company's sustainable development in the
following years. In 2019, the Company did not have
transactions adopted COSO-ERM framework and the Basic
In June 2019, COSCO SHIPPING Lines organized Rules for Enterprise Internal Control issued by any heavy monetary fines or non-monetary sanctions
COSCO SHIPPING Lines has formulated documents an in-house special training on anti-monopoly. In the Ministry of Finance of the PRC, China for violating social and economic legislation.
such as Regulations on the Supervision and Control of September 2019, COSCO SHIPPING Lines invited Securities Regulatory Commission, the National
Related Transactions, Regulation on the Management external professionals to give a special presentation Audit Office, China Banking Regulatory
of Information Disclosure of Internal Related on the centralized (anti-monopoly) declaration, in Commission and China Insurance Regulatory
Transactions to clearly regulate the daily management which the heads of relevant departments and Commission, as well as the actual operation
of related transactions. In the daily management of business personnel of the Company actively conditions of the Company, we have established
related party transactions, we regularly updates the list participated and had discussions on key topics and an effective risk management system. The board
of related parties, identifies related party transactions in problems in practice. of directors of the company shall bear the
time, strictly monitors the amount of continuous related ultimate responsibility for the risk management
party transactions, and ensures the legitimacy and The company persistently participates in the fair work, and an in-house department is set up to
compliance of related party transactions. competition in the market and provides customers take charge of the relevant work.
with better service. In 2019, the anti-monopoly
The Company also formulated the Administrative compliance awareness of the company's In 2019, the Company integrated ESG-related
Measures for Special Affiliated Enterprises. The management personnel at all levels has been risks into the existing risk management and
Measures require that management of the Company further improved. control framework, including the risks related to
disclose related party information of relevance to promoting sustainable development, the
themselves, and strictly prohibit any form of tunneling environmental risks faced by the Company, etc..
and propping in the Company's system.

Practice Charity COSCO SHIPPING Lines
take social responsibilities Case: Campus Propaganda Activities Case: Volunteer activities
as a corporate citizen. In in South China COSCO SHIPPING
2019, we as always Lines
Since March 2019, COSCO SHIPPING Lines has
organized and participated
On November 11, 2019, the South China COSCO sent staff to the core positions of Import Expo
in a variety of socially
SHIPPING Lines cooperated with Shenzhen Bureau, National Convention and Exhibition Center
useful activities to help
Maritime Bureau, Shenzhen Hongling Middle and Lead Team office of urban service, which
people in need and
School and other companies to carry out the provides strong support for the second Import Expo.
contribute to society. In
voluntary service activities of "exploring the ocean On the eve of the Expo, we dispatched staff to the
2019, COSCO SHIPPING
and entering the shipping". forum office, the investment promotion office, the
Lines donated over
operation center of the National Convention and
RMB10.62 million, and
The activity brought a wonderful lecture to nearly Exhibition Center, and the comprehensive
tried to make positive
300 students in grade two of Hongling Middle coordination group of Shanghai Municipal Service
contribution to the
School. This activity is the continuation of the Guarantee leading group to provide comprehensive,
education and
shipping knowledge winter camp launched last year, thoughtful, warm and meticulous services for the
environment of the located
and it also created a brand of "exploring the ocean second Import Expo and related supporting forums.
sites.
and entering the shipping" activity, and has
continued to warm up a series of voluntary services.
Case："Double 100"
pairing action between
village and enterprise
In 2019, COSCO
SHIPPING Lines actively
participated in the
targeted poverty
alleviation project of
"double 100" villages, we
signed a pair agreement
with Xindian Village,
Tiantai Town, Chishui City,
Zunyi, and injected over
RMB 760,000 of poverty Hainan COSCO SHIPPING Lines
carried out environmental protection
alleviation funds. COSCO
In the follow-up, the activity will be carried out by activity
SHIPPING Lines focused
activities such as preaching on campus, summer
on:
camp and winter camp, continuously enrich and On November 16, 2019 Hainan COSCO SHIPPING
 funding the "Crayfish improve the content and quality of the activity, Lines carried out environmental protection
Breeding Construction expand the company's social influence, and make volunteer activities with the theme of "protect green
Project", contributions to the community. water and green mountains from me", employees
to Haikou holiday beach for garbage collection,
 expanding the
beautified the beach environment with practical
Industrial Road，
actions, and guided tourists to consciously practice
 installing street lamps, green life.
 supplemented by
During the activity, people move along the beach,
purchasing agricultural
clean up all kinds of garbage, and infect tourists to
products from poor
join in the action to help the beach become clean.
households.
This activity not only enhanced employees'
Xindian Village will be awareness of environmental protection, but also
helped to win the battle of played a leading role in guiding tourists to love the
poverty alleviation, and city of Haikou more and actively making efforts to
the love of the COSCO protect the environment.
SHIPPING Lines staff will
be widely spread.
2019 Sustainability Report 34 2019 Sustainability Report

Environmental Operation
With the impact of global environmental trends and social governance, the risk related to environmental protection is of constant concern to us and stakeholders. It is
particularly important to pursue ecological and green shipment to protect the marine environment and conserve the marine ecosystem given the strategically increasing
importance of oceans today.
We value green production, and strictly abide by domestic and foreign laws and regulations related to environmental protection, including but not limited to the Environmental
Protection Law of the People's Republic of China, the Energy Conservation Law of the People's Republic of China, and the Marine Environment Protection Law of the
People's Republic of China, the Law of the People's Republic of China on the Prevention and Control of Environmental Pollution Caused by Solid Waste, the Law of the
People's Republic of China on the Prevention and Control of Water Pollution, the Implementation Scheme of the Domestic Emission Control Areas for Atmospheric Pollution
from Vessels and the International Convention for the Prevention of Pollution from Ships. All of our subordinate companies have assigned staff to follow the latest tendencies
of environmental protection at home and abroad, and continuously incorporate new requirements and standards into the corporate policies and administrative measures. At
the same time, guided by ISO140001 Environmental Management System, RB/104-2013/ISO50001：2018 Energy Management System, we have established and operated
an environment and energy management mechanism in line with our own operating conditions. The environment and energy management mechanism was approved by
external professional institutions each year to ensure effectiveness.
Besides, we also actively promote environmental protection and respond to inquiries from stakeholders. During 2019, we did not violate any relevant environmental laws and
regulations.

Energy conservation and IOP project
environmental protection for newly-
Energy Conservation and Emission Reduction In order to ensure the operating efficiency, we have
built ships launched the IOP project to improve the nonstop rate
of vessels and operating efficiency at the port, to best
When building new ships, we adopt the world's
control vessels' waiting time and cut the turnaround
most advanced design philosophy and the most
time, so as to reduce oil consumption. Ports that
excellent construction techniques, featuring low
have promoted IOP projects throughout the year
energy consumption and low emission. In order to
2019. The berthing arrangement and berthing
comply with the development concepts of energy
operation efficiency are generally stable. Most of the
conservation, emission reduction and
port operations efficiency are improved, especially
environmental protection, we have optimized the
the Far East Tianjin, Dalian and Ningbo ports,
hull form in ship design, adopted high-efficiency
overseas Port Klang. The waiting time has also
propellers and energy-saving devices, and
decreased significantly in general, especially
selected reasonable technical parameters and
Shanghai and Ningbo Ports, our main terminals in
equipment configurations to reduce fuel
the Far East, with a large year-on-year decrease.
consumption and emission so as to greatly
improve fuel economy. The ship's Energy
Efficiency Design Index (EEDI) has met the Using cleaner fuels
MARPOL 2025 target ahead of schedule.
In accordance with the decision passed on the 70th
24-hour dynamic monitoring meeting of the Marine Environment Protection
Committee under the IMO (MEPC70), since January
In order to continuously optimize the route and
1, 2020 the amount of sulfur in the fuel oil used by
improve the fleet's fuel efficiency and operating
ships worldwide shall not exceed 0.5%. For some
performance, and to implement the company's
sulfur emission control areas, not beyond 0.1%.
safety, on-time, cost reduction, and efficient
Moreover, in accordance with the latest requirements
operation goals, we rely on ship fuel budget
The 13th Five-year Plan to Save Energy and Cut Employees can identify energy factors that can be of the IMO, all ships without desulfurization
management (pre-guided), operation monitoring
Emissions issued by the State Council specifies the controlled or influenced in the production activities and equipment will be prohibited from carrying fuel oil
(monitored during the event), and fuel cost
targets of energy conservation and emission reduction business operations according to energy review with excessive sulfur content after the global sulfur
analysis (post-analysis) to achieve closed-loop
during the 13th five-year plan period, setting a goal to methods and requirements of the Energy Review limit came into effect in 2020.
management of fleet operating costs. At the same
cut energy consumption by 15% by 2020 per ten Procedures. In this way, we can assess energy impacts
time, we strengthened daily dynamic monitoring of We strictly observes relevant regulations. COSCO
thousand yuan of GDP from 2015, and to keep the total to determine the energy factors of priority control and
ships, and tracked and reported ship stoppages, SHIPPING Lines will implement the sulfur limit based
energy consumption within 5 billion tons of standard discover the equipment, facilities, systems, and
track detours (drifting midway), and medical on the allowed timetable to reduce emissions and
coal. Besides, domestic emissions of chemical oxygen procedures that have serious impacts on energy
rescue and other changes on a 24-hour basis, we contribute to environmental protection around the
demand, ammonia nitrogen, sulfur dioxide and nitrogen consumption so as to achieve the goal of energy
increased the monitoring frequency of ships with world. To meet the requirements, we will mainly use
oxide should not exceed 20.01 million tons, 2.07 million conservation and consumption reduction. Moreover, we
unreasonably speeding, control the unreasonable low-sulfur fuel oil and also try other compliance
tons, 15.8 million tons and 15.74 million tons, which collect and monitor fuel consumption, capacity and
peak value and high consumption points, promptly methods, such as installing desulfurization towers.
decreased by 10%, 10%, 15%, and 15% respectively mileage on a daily basis and issue Weekly Report of
urge them back to a reasonable interval. Guided On March 28, 2019, our subsidiary COSCO
compared with 2015. Fuel Management, the Monthly Report of Fuel and
by the best operating practices for ships, we SHIPPING Lines has entered into a low-sulfur fuel oil
Lubricant Oil Management and Monthly Best Fuel
adhere to the combination of stable working supply agreement with the marine fuel supplier,
We attach great importance to energy conservation and Consumption Per Nautical Miles and Fuel Rating for
conditions and optimal shipping routes, and strive DOUBLE RICH LIMITED. According to the
emission reduction, and support the national targets in Each Ship to ensure the goal is implemented.
to achieve safety, on-time and economic balance agreement, DOUBLE RICH LIMITED shall provide
this respect. We have formulated the Measures for the
of ship operations. COSCO SHIPPING Lines with marine fuel oil with
Management of Energy Conservation and Emission We understand that the ship's carbon emission during
Reduction, and set up a dedicated leading group, operations mainly comes from the fuel burned in the sulfur content not exceeding the 0.5% m/m limit
Technical transformation of bulbous
specified responsibilities of relevant departments, made fuel devices, mostly the fuel originated from the main required by the IMO to help our container shipping
medium and long-term schemes and annual work plans engine. The carbon discharged from the main engine is pimple fleet better fulfill the requirements of the International
for energy conservation and emission reduction. In the closely related to the engine type, fuel type, ship speed, Convention for the Prevention of Pollution from Ships.
In order to reduce the air resistance of sailing ship,
meantime, regular meetings are held to examine our draft and the environment. Therefore, taking these
thereby reducing the amount of fuel it consumes,
efforts and summarize experience to ensure the factors into account, we take diversified measures to
we actively carry out technical transformation of
implementation of the annual work plan. achieve energy conservation and emission reduction.
the bulbous pimple of the ship. in past two years,
which mainly covered 3 transformation projects:
Meanwhile, in order to understand energy data more
4250TEU series ship bulb nose and propeller
accurately, we have formulated the Energy Review
transformation, 10020TEU series ship propeller
Procedures and the Management Procedures for
transformation, 13000TEU series ship propeller
Energy Benchmarks and Performance Parameters.
transformation.
2019 COSCO SHIPPING Lines Marine Fuel
Energy Conservation and Emission Reduction Comsumption
5,200,000.00 4.85
4.80
5,100,000.00
4.75
5,000,000.00 4.70
4.65
4,900,000.00
4.60
4,800,000.00 4.55
4.50
4,700,000.00
4.45
4,600,000.00 4.40
2017 2018 2019
Marine fuel(ton) 4,791,080.00 5,149,485.00 5,122,752.60
Marine fuel intensity
(kg/ kiloton per 4.80 4.79 4.56
nautical mile)
Marine fuel(ton) Marine fuel intensity (kg/ kiloton per nautical mile)
Indicator 2017 2018 2019

CO2（Scope1)(ton)
14,900,262.80 16,014,898.35 15,931,758.72
CO2 emission intensity (kg/
15.04 14.90 14.18
kiloton per nautical mile)
Carbon emission calculator In addition to strictly controlling the use of fuel, we also Nitrogen Oxides (NOx)(ton)
emphasize the importance of saving water. We have
431,179.20 463,453.66 461,047.68
In order to better achieve the goal of reducing carbon
emissions and guide the efforts of energy conservation been working on seawater desalination by using the NOx emission intensity
waste heat from the equipment to produce fresh water 0.44 0.43 0.41
and emission reduction, we launched carbon emission (kg/kiloton per nautical mile)
calculators in 2010. The calculator can help customers for domestic use and facilities, which reduces the
Sulphur Oxides (SOx)(ton)
calculate carbon dioxide emissions throughout the pressure on fresh water supply on shore. 287,464.80 308,969.10 307,365.12
supply chain, which demonstrates our resolution in SOx emission intensity
energy conservation and emission reduction as well as 0.29 0.28 0.27
(kg/kiloton per nautical mile)
our determination to help customers understand and
manage their end-to-end supply chain carbon footprint. Greenhouse Gas and Exhaust Gas Emissions of COSCO SHIPPING Lines in 2019
Two of our subordinate liner companies are members Fresh Water Consumed
of the Clean Cargo Working Group (CCWG), who are
open to public scrutiny and voluntarily report their 177,327.30tons
carbon dioxide, sulfide and nitride emissions on global
decrease7%
routes. In order to improve our environmental
performance through comparing with the other
companies in the same industry across the world.
In addition, we continuously promote employees'
In the past three years, our company has achieved awareness and habits of water conservation and
certain results in energy conservation and emission encourage them to optimize the use of water in the
reduction. The fuel consumption intensity and ship's system. Some of our ships are equipped with
greenhouse gas and exhaust emissions intensities seawater desalination devices. For those ships, we can
have decreased to varying degrees. In 2019, the desalinate seawater and reduce the use of fresh water
marine fuel consumed by COSCO Shipping Lines was resources.
5,122,752.60 tons, decreased from the previous year.
The marine fuel consumption intensity decreased by In 2019, the fleet of COSCO SHIPPING Lines
4.80% from 2018. The carbon dioxide emission consumed 177,327.30 tons of fresh water in total,
intensity decreased by 4.83% from the previous year. having decreased by 7% compared with the previous
The emission intensities of NOx and SOx decreased by year, and realized 82,845.47 tons seawater
4.65% and 3.57% respectively over the previous year. desalination, increased by 80% compared to 2018.

Strict Treatment of Emissions Protect Ecological Environment
We adhere to the concept of sustainable
Controlling the discharge of ships'
development and are trying to balance enterprise
development and ecological protection. We believe ballast water
that environmental protection is the prerequisite
The IMO has formulated the International Convention
and a necessary condition for sustainable
for the Control and Management of Ships' Ballast
development. We have strengthened the
Water and Sediments 2004 (BWM Convention) and
management of ship's ballast water and been
relevant implementation guidelines to help the
making efforts to minimize the negative impacts on
government and relevant parties reduce the risk of
the marine environment. In addition, we also
introducing harmful aquatic organisms and
enhance the environmental protection awareness
pathogens from ships' ballast water and sediments.
of our staff by organizing relevant activities.
The BWM Convention entered into force on
Strengthening environmental protection September 8, 2017, China submitted instruments to
IMO on October 22, 2018. The BWM Convention
awareness
came into force in China on January 22, 2019.
We promote green offices by encouraging double-
sided printing, saving paper, recycling, saving COSCO SHIPPING Lines has formulated a number
electricity and environment-friendly procurement of directive documents before the BWM Convention
measures, to make environmental protection a came into force, such as the Instructions on Ballast
natural act of employees. We have also organized Water Management and the Ballast Water
various forms of promotion activities about Management Plan, to prohibit any violation of the
environmental protection, such as training in BWM Convention. In actual operations, we mainly
environmental laws and regulations, knowledge manage the ballast water through four steps:
competitions and lectures, to increase environmental
 ballast water operation,
protection awareness and encourage more staff to
 replacement,
take action.
 safety inspection and ，
Protecting blue whales and blue skies  recording.
A healthy marine environment is the basis for the sustainable development of the shipping industry, therefore, strict
management of the ship's effluent and garbage is necessary. COSCO SHIPPING Lines, as a pioneer in For example, during the handling of the ballast water,
environmental protection in the global liner industry, it should be avoided to absorb the ballast water in the
We attach great importance to the marine environment, therefore, we require that the management of COSCO attaches great importance to environmental restricted area and position, and the ballast sediment
SHIPPING Lines sign the letter of safety responsibility that includes pollution incidents from production ships into protection. In 2018, COSCO SHIPPING Lines took should be checked and cleared in time. Ballast water
the assessment scope, which directly affects their performance appraisals. the initiative to contact the sponsors of "Protecting should be replaced according to the ballast water
Blue Whales and Blue Skies" to participate in the exchange standard (D-1) or ballast water
In the meantime, the crew are required to strictly comply with the Ship's Garbage Management Plan to minimize program. From July to December 2018 and May to performance standard (D-2) stipulated in the
the negative effects on the marine environment. There were no major effluent and waste leakage events during November 2019, our ships lowered speed to 10 knots certificate and for D-1, the water should be replaced
2019. when sailing through the Santa Barbara Channel in a water area at least 200 nautical miles from the
Region and the San Francisco Bay Area to protect nearest land and 200 nautical miles deep. When the
In order to prevent marine incidents and pollution, and to protect the marine ecosystem, in accordance the one of the world's major habitations of blue whales. external environment is not allowed, it is better to get
Administrative Provisions for Preventing the Watercraft Pollution on the Ocean Environment promulgated by the In the meantime, ship's low speed mode reduced the far away from terrestrial waters. In all cases, the
State Council and the Ship Pollutant Emission Standards by the Ministry of Environmental Protection, we have emission of greenhouse gases, suspended particles water should be replaced at least 50 nautical miles
formulated the Ship's Garbage Management Plan by reference to MARPOL 73/78 and Resolution MEPC.219 (63), and other pollutants effectively. Through ceaseless from the nearest land and at a depth of 200 meters.
MEPC.220 (63). efforts, COSCO SHIPPING Lines was recognized by For D-2, suction and discharge should be carried out
the program sponsors and was honored international through the ballast water treatment device. The
The plan specifies the responsibility of every crew member and requires management to provide training awards in 2019. volume of the ballast tank should be inspected
concerning the rules of vessel garbage collection, disposal and storage. All the garbage should be stored, regularly after replacement and should be recorded
incinerated and disposed of after being classified and processed. Refusing to carry shark fin related products in the ballast water record book.
COSCO SHIPPING Lines has undertaken to refuse

In the meantime, we have also formulated the Operational Provisions of COSCO SHIPPING Lines on Oily to ship whales, sharks, dolphins and related products.
Wastewater Treatment to prevent risks, which provides a complete operational process to bring the oily wastewater This policy has demonstrated our sense of
back on shore. For unexpected oil discharges, we have developed the Shipboard Oil Pollution Emergency Plan to responsibility and practical action to support the
help the crew take prompt measures to reduce and control the impact of an accidental oil spill. global halt on the trade of endangered and protected
marine animals.
People Oriented
COSCO SHIPPING Lines aims to ensure the occupational health and safety of employees and create harmonious labour relations.
Starting from the sustainable development strategy, establish a talent team that meets the company's development strategy
requirements. In combination with international and domestic laws, regulations, and conventions, the company has formulated relevant
policies for employee recruitment, management, as well as occupational health, labour safety, and welfare benefits.

Employment and Diversity Employee Training and Growth
COSCO SHIPPING Lines pay attention to the Efficient training
development of employees. Based on the people
oriented corporate culture, we keep carrying out In 2019, we have also upgraded the online learning
efficient personnel training, so as to ensure the platform on the basis of following the system
abundance and depth of the talent system. We documents such as the “Employee Education and
encourage employees to keep studying while Training Management Measures” and “Internal
working, and to accomplish self-improvement while Trainer Management Measures”. For example, for
promoting the development of the Company. the company's online learning platform "JIZHIHUI", in
2019, the company introduced external high-quality
Equal promotion online courses such as "20 Workplace English for
Foreign Enterprise Employees Studying", "Word \
COSCO SHIPPING Lines provide employees with Excel \ PPT Micro Classes" and supported the form
equal, fair and transparent promotion channels. In of video courseware for employees to learn more
addition, the company conducts assessments of conveniently.
employees in accordance with the “Employee
Assessment Procedures”. The assessment During 2019, COSCO SHIPPING Lines provided
indicators are a combination of qualitative and 10,191 employees with 260,136 hours of training and
quantitative indicators, so as to ensure that each the percentage of employees trained was 100% (For
employee has a fair and equal promotion formal employee training only, does not include labor
opportunity. staff leased to third-party companies).
Training 260,136 Training 10,191

COSCO SHIPPING Lines actively promotes its global Employment of CSL in 2019 hours person
operations and development, and strives to maintain
equal and diversified employment opportunities. The
Case: Further development of The Talent Plan
company establishes and strictly abides by the Staff 2,032
Management Procedures and the Recruitment In 2019, COSCO SHIPPING Lines continued to deepen the development of The Talent Plan. Every week,
Procedures, and continues to replenish outstanding overseas members of The Talent Plan shared presentations on the local humanities, cultures, scenic spots,
talents in a fair and transparent manner through business profiles and other aspects of the country, which promote learning exchanges between employees at
multiple channels such as campus recruitment, online 15,217 home and abroad, and strengthen domestic members' understanding of the situation in overseas countries. In
recruitment, and social recruitment. We offer equal addition, we also arrange domestic members of The Talent Plan to participate in the financial courses. In the form
employment opportunities in all aspects of recruitment, of group sandbox, the managers of relevant business departments assume specific management roles, and
professional development, promotion, training and simulate the overall operation of the company to improve management skills
rewards, regardless of skin colour, nationality, race,
Contracted Employee: person Part-time Employee: person
age, gender, religious belief or physical defect. It is
prohibited to cause any form of discrimination or unfair
treatment. In addition, the company also provides
disabled employees with salaries and benefits that are
not deviated from those of ordinary employees, so that
disabled employees can find their own job positioning
New 152 person
and truly realize a fair and equal corporate culture.
By the end of the reporting period, the total number of

employees of COSCO SHIPPING Lines was
17,249.Among them, the number of contracted
New 126 person
employees was 15,217, and the number of outsourced

employees (leased workforce from third-party
During the reporting period, the resignation number of
companies) was 2,032. In 2019, the number of new
COSCO SHIPPING Lines was 588, and the turnover
employees of COSCO SHIPPING Lines totalled 278,
rate was 3.86%.We fully respect the personal choices
including 152 male employees and 126 female
of our employees. When employees leave, we will
employees.
handle the separation procedures according to law.

Safety Inspection
Occupational Health and Safety Case： Safety technology management
department of COSCO SHIPPING Lines
In 2019, we strengthened the on-site inspection carries out safety inspection guidance for
of ships and land units, focusing on the Tianjin Branch
implementation of the ship, dangerous goods On March 19, 2019, Safety technology management
storage and transportation, special equipment department of COSCO SHIPPING Lines organized
and safety rules and regulations. All kinds of the inspection team to carry out safety inspection
safety supervisors carried out on-site safety guidance for Tianjin Branch. The inspection team
supervision and inspection of ships for 245 times, conducted discussions with relevant department
531 rectification items, 219 on-site rectification personnel to learn more about the development of
and 312 tracking rectification items, At present, safety management work. "Inspection and
all of them have been rectified. The land unit has Governance" and "Safety Management Mode", etc.,
inspected 91 times, 236 items have been rectified, combined with actual safety management, the team
212 items have been rectified on the spot, 24 conducted training and on-site inspections of daily
items have been rectified, and all problems found safety inspection records to further improve relevant
in the inspection have been corrected in time. safety management work.
Labor Protection
We set up a special fund to provide labor Case： COSCO SHIPPING Lines Zibo
protection articles, and distribute corresponding Company carried out fire safety emergency
labor protection articles for employees free of drill
charge in combination with the actual needs of
In July 2019, in order to enhance employees' safety
each unit, then arrange a specific administrator to
precautions and improve emergency response
be responsible for the daily management of labor
capabilities, COSCO SHIPPING Lines Qingdao
protection articles, so as to ensure that the labor
Branch Zibo Company carried out fire safety
protection articles required by employees meet
In 2019, in order to further strengthen production safety emergency drills and received good results.
COSCO SHIPPING Lines carry out the national "safety the national standards.
first, prevention first" policy In the production management, implement similar laws and regulations
This activity is divided into two parts, theoretical
management, we always put the occupational health such as the Safety Production Law in various countries Safety Education
and regions, so as to effectively prevent and reduce training and practical operation. First, the firefighting
and safety of our staff in the first place, company
various accidents, COSCO SHIPPING Lines revised In order to spread safety and health awareness to staff introduced the firefighting knowledge such as
establish an occupational health and safety
the COSCO SHIPPING Lines Safety Production Duty employees' daily work and life, we actively the prevention and suppression of the initial fire, the
management system to strengthen the management of
Management Regulations, "Administrative Measures for organize various safety education activities, and escape and self-rescue, and the use of common fire
labour safety and occupational health, and strive to
Emergency Response Plans for COSCO SHIPPING encourage employees to participate in safety extinguishers. After the theoretical training, everyone
provide a healthy and safe working environment for
Lines", "Consolidated Emergency Response Plans for training and certification. In 2019, in the container conducted practical exercises, and each unit
employees.
COSCO SHIPPING Lines" and "Administrative transportation business, the company held performed its duties according to the requirements of
Provisions for Safety Education and Training of training courses for safety management the division of labour, organized the evacuation in an
In 2019, in COSCO SHIPPING Lines, the 1,000-person
COSCO SHIPPING Lines", so as to strengthen each personnel of all units, completed 43 sessions of orderly manner, operated the fire extinguishers in
injury rate was 0.0657‰, and 1 cases of work-related
operation units' responsibility of safe production, and centralized safety training before the crew turn, and learned the basic methods of use. Through
injuries and 0 death occurred.
provide implementation basis for the investigation of embarked; organized more than 340 person this real-life drill, employees' fire safety awareness
safety production responsibility. times of conversation training for part-time labor was further improved, the company's emergency
safety supervisors of ships; organized one response capabilities were tested, and safety
session of special training course for part-time guarantees were established for production and
labor safety supervisors of ships; and held 6 operation.
2017 2018 2019 sessions of centralized safety training for crew
members of new ships.
Work-related
0 0 0
fatalities (person)
Work-related injuries
2 0 1
(person)
Total number of
90 0 0
missed work days

Protecting rights and benefits of Employee Care
employee
In addition to holidays, insurance and welfare
COSCO SHIPPING Lines is committed to serving
benefits, COSCO SHIPPING Lines also takes
as a role model and providing employees with
employee activities as a vital aspect in cultural
competitive salaries and benefits. In terms of
construction with people oriented philosophy In order
remuneration, the company strictly abides by the
to lighten employees' cultural life, create a
minimum wage management regulations of local
comfortable working environment and drive the
governments to ensure that the basic salary of all
corporate cultural construction, the company fully
types of employees is not lower than the legal
coordinated resources from various fields and
requirements, pay for social insurances including
organized various kinds of activities by the
basic endowment insurance, medical insurance,
cooperation of numerous parties like the labour union,
unemployed insurance, employment injury
administration department and human resource
insurance, and maternity insurance and housing
department with joint powers formed among
fund fully and timely. In addition, we withhold and
members from different departments.
pay the personal insurance monthly on behalf of
the employees. Case： COSCO SHIPPING Lines organized
legal lectures
Our employees enjoy statutory off-days and
Protecting Employee Rights holidays, paid leaves, family visit leaves, as well
On July 31, 2019, a total of more than 60 employees
attended the "Legal Knowledge Training Seminar"
as other holidays specified by Chinese policies organized by COSCO SHIPPING Lines in conjunction
and the Company's regulations. Employees' with Shanghai Siwei Lema Law Firm. This seminar is
salary on overtime hours and holidays are payed based on the monthly legal consultation, analysed
strictly according to Chinese policies and the the legal issues that employees generally have
Company's regulations. doubts, and provided targeted explanation of legal
We follow Labour Law, The labour contract Law, Prohibition of child labour and forced
common sense. At the scene of the activity, the
Regulations about Forbidding from the Use of Child As for Company's benefits, we provide
labour lecturer explained in a simple way, interactived Q & A
Labourers, Feme Law, and Trade Union Law, then employees with daily lunch, annual medical on the stage. The participants frequently held up their
incorporate anti-discrimination, prohibition of child COSCO SHIPPING Lines expressly prohibits the use of examination for staff mental and physical health, mobile phones to record the content of the
labour, opposition to forced labour human rights child labour. We have formulated relevant policies and as well as various health security services that explanation. Employees said that they learned a lot
principles and requirements into sustainable comprehensive preventive measures in important employees can choose based on their needs. In of legal knowledge that can be applied in life.
development management, strictly abide by aspects such as employee recruitment to prevent the order to help employees with their legal issues,
international conventions and rights related to human use of child labour. At the same time, in accordance enhance their legal awareness for safeguarding Case： COSCO SHIPPING Lines
rights, and prohibit any discriminatory behaviour. with the requirements of the international social rights and boost company growth in a balanced established fitness association
responsibility standard SA8000, the "save child labour way, the Company regularly carries out legal In 2019, COSCO SHIPPING Lines established a
As of 2019, there have been no discriminatory acts at procedure" has been established to carry out remedial consultations for employees and invites fitness association. During the noon break on
any of our locations, nor have there been any incidents work in accordance with the requirements of laws and professional lawyers to give legal advice. Monday and Thursday, we will invite professional
or complaints that violate the rights of ethnic minorities regulations in the event that child labour is employed fitness coaches to lead our employees to conduct
or the freedom of religious belief. due to work errors. If any employment of child labour is Our labour union, as a representative of the scientific and reasonable training, so as to improve
discovered, the Company will stop and correct this employees, signed the Collective Contract with the physical quality of our employees, cultivate their
At the same time, COSCO SHIPPING Lines signed behaviour in time, and assume corresponding the Company and established a mediation interests and hobbies, and increase their happiness
collective labour contracts with all employees through responsibilities according to the provisions of laws and mechanism for resolving labour disputes. In the and sense of belonging.
unions. The company's obligations, employees' rights, regulations. We also pass on these ideas to suppliers event of labour disputes, the union will mediate
and dispute settlement methods were specified in the and require them to make a commitment not to use and provide legal services. When it comes to
contracts. We actively protect the legal rights of child labour when they enter the market, so as to major corporate decisions, we notify all
employees in any form, and we are willing to actively ensure that they do not use child labour. employees through the workers' congress, local
communicate and negotiate with employees to protect area network, newspapers, posters and other
their legitimate interests against the rights and interests COSCO SHIPPING Lines stopped the occurrence of means. In the future, COSCO SHIPPING Lines
of employees and the possible damage to their rights forced labour. We explicitly prohibit the use of forced will continue to protect the rights and interests of
caused by major changes in the company's operations. labour, debt repayment or contract labour, and have employees, effectively resolve labour disputes,
made detailed and reasonable provisions in the and promote the stability of the staff and society
important links of enterprise recruitment, employment as the primary task, then take this as the basis for
and resignation, so as to eliminate the use of forced the realization of a better life of employees, and
labour from specific practice. In this year, forced labour build a bridge of trust with employees.
has never occurred in our operation and suppliers.
Appendix
Index Table for ESG
Aspect Indicator Chapter in Report Aspect Indicator Chapter in Report
A A1 Emissions Energy conservation B B1 Employment Employment and

and emission reduction diversity
Enviro Information on: Social Information on:
nment (a) the policies; and Strict treatment of
(a) the policies; and
emissions
al
(b) compliance with relevant laws and regulations that have a significant impact on the (b) compliance with relevant laws and regulations that have a significant impact on the
issuer issuer
relating to air and greenhouse gas emissions, discharges into water and land, and relating to compensation and dismissal, recruitment and promotion, working hours, rest
generation of hazardous and non-hazardous waste. periods, equal opportunity, diversity, anti-discrimination, and other benefits and welfare.
A1.1 Strict treatment of B1.1 Statistical Table
emissions
The types of emissions and respective emissions data. Total workforce by gender, employment type, age group and geographical region.
A1.2 Statistical Table B1.2 Statistical Table
Greenhouse gas emissions in total (in tonnes) and, where appropriate, intensity (e.g. Employee turnover rate by gender, age group and geographical region.
per unit of production volume, per facility). B2 Health and Safety Occupational health
A1.3 Statistical Table and safety
Information on:
Total hazardous waste produced (in tonnes) and, where appropriate, intensity (e.g. per
unit of production volume, per facility).
A1.4 Statistical Table (b) compliance with relevant laws and regulations that have a significant impact on the
issuer
Total non-hazardous waste produced (in tonnes) and, where appropriate, intensity (e.g.
per unit of production volume, per facility). relating to providing a safe working environment and protecting employees from
A1.5 Energy conservation occupational hazards.
and emission reduction B2.1 Statistical Table
Description of measures to mitigate emissions and results achieved.
A1.6 Energy conservation Number and rate of work-related fatalities.
and emission reduction
Description of how hazardous and non-hazardous wastes are handled, reduction B2.2 Statistical Table
initiatives and results achieved. Strict treatment of
emissions Lost days due to work injury.
A2 Use of Resources Energy conservation B2.3 Occupational health
and emission reduction and safety
Policies on the efficient use of resources, including energy, water and other raw Description of occupational health and safety measures adopted how they are
materials. implemented and monitored.
A2.1 Statistical Table B3 Training and Development Employee training and
growth
Direct and/or indirect energy consumption by type (e.g. electricity, gas or oil) in total Policies on improving employees' knowledge and skills for discharging duties at work.
(kWh in '000s) and intensity (e.g. per unit of production volume, per facility). Description of training activities.
A2.2 Statistical Table B3.1 Statistical Table
facility). 倡导平等与多元化
Water consumption in total and intensity (e.g. per unit of production volume, per The percentage of employees trained by gender and employee category (e.g. senior
management, middle management).
B3.2 Statistical Table
A2.3 Energy conservation
Description of energy use efficiency initiatives and results achieved.

A2.4
维护劳资关系 and emission reduction
Energy conservation
The average training hours completed per employee by gender and employee
category.
B4 Labor Standards Protecting employee
保障员工人权
and emission reduction
Description of whether there is any issue in sourcing water that is fit for purpose, water rights
efficiency initiatives and results achieved. Information on:
A2.5 N/A (a) the policies; and
reference to per unit produced. 营造和谐的工作环境

Total packaging material used for finished products (in tonnes) and, if applicable, with (b) compliance with relevant laws and regulations that have a significant impact on the
issuer relating to preventing child and forced labour.
A3 The Environment and Natural Recourses Protect ecological B4.1 Protecting employee
environment rights
Policies on minimising the issuer's significant impact on the environment and natural Description of measures to review employment practices to avoid child and forced
resources. labour.
A3.1 Protect ecological B4.2 Protecting employee
environment rights
Description of the significant impacts of activities on the environment and natural Description of steps taken to eliminate such practices when discovered.
resources and the actions taken to manage them.
Index Table for ESG
Aspect Indicator Chapter in Report Aspect Indicator Chapter in Report
B B5 Supply Chain Management Supplier Management B B8 Community Practice charity
Social Policies on managing environmental and social risks of the supply chain. Social Policies on community engagement to understand the needs of the communities where
the issuer operates and to ensure its activities take into consideration the communities'
B5.1 Supplier Management interests.
Statistical Table B8.1 Practice charity
Number of suppliers by geographical region.
Focus areas of contribution (e.g. education, environmental
B5.2 Supplier Management
concerns, labour needs, health, culture, sport).
Description of practices relating to engaging suppliers, number of suppliers where the B8.2 Practice charity
practices are being implemented, how they are implemented and monitored.
Resources contributed (e.g. money or time) to the focus area.
B6 Product Responsibility Customer first
Information on:
(b) compliance with relevant laws and regulations that have a significant impact on the
issuer relating to health and safety, advertising, labelling and privacy matters relating to
products and services provided and methods of redress.
B6.1 N/A
Percentage of total products sold or shipped subject to recalls for safety and health
reasons.
B6.2 Customer first
Number of products and service related complaints received and how they are dealt
with.
B6.3 N/A
Description of practices relating to observing and protecting intellectual property rights.
B6.4 N/A
Description of quality assurance process and recall procedures.
B6.5 Customer first
Description of consumer data protection and privacy policies, how they are
倡导平等与多元化
implemented and monitored.
B7 Anti-corruption Anti-corruption
management
Information on:

维护劳资关系
(b) compliance with relevant laws and regulations that have a significant impact on the
保障员工人权
issuer relating to bribery, extortion, fraud and money laundering.
B7.1 Anti-corruption
management
Number of concluded legal cases regarding corrupt practices brought against the issuer
or its employees during the reporting period and the outcomes of the cases.
B7.2
营造和谐的工作环境 Anti-corruption
management
Description of preventive measures and whistle-blowing procedures, how they are
implemented and monitored.

GRI content Disclosure Chapter in Report Reason
Index Table for GRI index be

omitted
GRI content Disclosure Chapter in Report Reason Major issue GRI 200 Economy Standard Series
index be GRI 203 103-1 Explanation of the material topic and its Boundary Development and responsibility in
omitted Indirect parallel
Economic 103-2 The management approach and its components Development and responsibility in
GRI 101 General Disclosure Impacts parallel
GRI102: 102-1 Name of the organization About the Report 103-3 Evaluation of the management approach Development and responsibility in
General parallel
Disclosures 102-2 Activities, brands, products, and services About COSCO SHIPPING Lines 203-2 Significant indirect economic impacts Development and responsibility in
2016 parallel
http://lines.coscoshipping.com/home/About
GRI 205 103-1 Explanation of the material topic and its Boundary Anti-corruption management
/about/Profile
Anti- 103-2 The management approach and its components Anti-corruption management
102-3 Location of headquarters About COSCO SHIPPING Lines
corruption
103-3 Evaluation of the management approach Anti-corruption management
http://lines.coscoshipping.com/home/About
/about/Profile 205-3 Confirmed incidents of corruption and actions taken Anti-corruption management
102-4 Location of operations About COSCO SHIPPING Lines Major issue GRI 300 Environment Standard Series
102-5 Ownership and legal form About COSCO SHIPPING Lines GRI 302 103-1 Explanation of the material topic and its Boundary Stakeholders and material issues
102-6 Markets served About COSCO SHIPPING Lines Energy analysis
103-2 The management approach and its components Energy conservation and emission
102-7 Scale of the organization Outline of Report Disclosure
reduction
102-8 Information on employees and other workers Employment and Diversity
103-3 Evaluation of the management approach Energy conservation and emission
102-9 Supply chain About COSCO SHIPPING Lines reduction
Supplier Management 302-1 Energy consumption within the organization Statistical Table
102-10 Significant changes to the organization About the Report GRI 303 103-1 Explanation of the material topic and its Boundary Stakeholders and material issues
and its supply chain analysis
Water and
102-11 Precautionary Principle or approach About COSCO SHIPPING Lines 103-2 The management approach and its components Energy conservation and emission
Effluents
102-12 External initiatives About COSCO SHIPPING Lines reduction
102-13 Membership of associations About COSCO SHIPPING Lines 103-3 Evaluation of the management approach Energy conservation and emission
102-14 Statement from senior decision-maker Statement of the Chairman reduction
102-16 Values, principles, standards, and norms About COSCO SHIPPING Lines 303-1 Interactions with water as a shared resource Statistical Table
of behavior
GRI 304 103-1 Explanation of the material topic and its Boundary Stakeholders and material issues
102-18 Governance structure About COSCO SHIPPING Lines
Biodiversity analysis
102-40 List of stakeholder groups Stakeholders and material issues analysis
103-2 The management approach and its components Protect the ecological environment
102-41 Collective bargaining agreements Protecting employee rights
102-42 Identifying and selecting stakeholders Stakeholders and material issues analysis 103-3 Evaluation of the management approach Protect the ecological environment
102-43 Approach to stakeholder engagement Stakeholders and material issues analysis 304-2 Significant impacts of activities, products, and Protect the ecological environment
102-44 Key topics and concerns raised Stakeholders and material issues analysis services on biodiversity
倡导平等与多元化
102-45 Entities included in the consolidated About the Report GRI 305 103-1 Explanation of the material topic and its Boundary Stakeholders and material issues
financial statements Emissions analysis
102-46 Defining report content and topic Stakeholders and material issues analysis 103-2 The management approach and its components Energy conservation and emission
reduction / Strict treatment of
维护劳资关系
Boundaries
102-47 List of material topics Stakeholders and material issues analysis emissions
102-48 Restatements of information About the Report 103-3 Evaluation of the management approach Energy conservation and emission
102-49 Changes in reporting Stakeholders and material issues analysis reduction / Strict treatment of
102-50 Reporting period
102-51 Date of most recent report 保障员工人权
About the Report
About the Report 305-1 Direct (Scope 1) GHG emissions
emissions
Statistical Table
102-52 Reporting cycle About the Report 305-2 Energy indirect (Scope 2) GHG emissions Statistical Table
102-53 Contact point for questions regarding the
report
102-54 Claims of reporting in accordance with the
营造和谐的工作环境
About the Report
About the Report

GRI 306
Effluents
103-1 Explanation of the material topic and its Boundary Stakeholders and material issues
analysis
103-2 The management approach and its components Strict treatment of emissions
GRI Standards and Waste
102-55 GRI content index Index table for GRI 103-3 Evaluation of the management approach Strict treatment of emissions
102-56 External assurance Independent assurance statement 306-1 Water discharge by quality and destination Statistical Table
306-2 Waste by type and disposal method Statistical Table
306-3 Significant spills Strict treatment of emissions

Index Table for GRI
GRI content Disclosure Chapter in Report Reason GRI content Disclosure Chapter in Report Reason
index be index be
omitted omitted
Major issue GRI 300 Environment Standard Series Major issue GRI 400 Society Standard Series
GRI 307 103-1 Explanation of the material topic and its Boundary Stakeholders and material issues GRI-407 103-1 Explanation of the material topic and its Boundary Protecting employee rights
Environmen analysis Freedom of
103-2 The management approach and its components Protecting employee rights
tal 103-2 The management approach and its components Help environmental protection Association
Compliance and 103-3 Evaluation of the management approach Protecting employee rights
103-3 Evaluation of the management approach Help environmental protection
Collective
407-1 Operations and suppliers in which the right to Protecting employee rights
307-1 Non-compliance with environmental laws and Help environmental protection Bargaining
freedom of association and collective bargaining may be
regulations
at risk
Major issue GRI 400 Society Standard Series
GRI-408 103-1 Explanation of the material topic and its Boundary Protecting employee rights
Employmen Child Labor 103-2 The management approach and its components Protecting employee rights
t 103-3 Evaluation of the management approach Protecting employee rights
103-3 Evaluation of the management approach Protecting employee rights
408-1 Operations and suppliers at significant risk for Protecting employee rights
401-1New employee hires and employee turnover Statistical Table incidents of child labor
401-2 Benefits provided to full-time employees that are Protecting employee rights
not provided to temporary or part-time employees
Forced or
GRI-403 103-1 Explanation of the material topic and its Boundary Employee care 103-2 The management approach and its components Protecting employee rights
Compulsor
Occupation
103-2 The management approach and its components Occupational health and safety y Labor 103-3 Evaluation of the management approach Protecting employee rights
al Health
and Safety 103-3 Evaluation of the management approach Occupational health and safety 409-1 Protecting employee rights
403-2 Hazard identification, risk assessment, and Occupational health and safety Operations and suppliers at significant risk for incidents
incident investigation of
GRI-404 103-1 Explanation of the material topic and its Boundary Employee care GRI-415 103-1 Explanation of the material topic and its Boundary Practice charity
Training
103-2 The management approach and its components Employee training and growth Public 103-2 The management approach and its components Practice charity
and
103-3 Evaluation of the management approach Employee training and growth Policy
Education 103-3 Evaluation of the management approach Practice charity
404-1 Average hours of training per year per employee Statistical Table 415-1 Political contributions Practice charity
404-2 Programs for upgrading employee skills and Employee training and growth GRI-418 103-1 Explanation of the material topic and its Boundary Customer first
transition assistance programs Customer
103-2 The management approach and its components Customer first
GRI-405 103-1 Explanation of the material topic and its Boundary Employment and Diversity Privacy
Diversity 103-3 Evaluation of the management approach Customer first
103-2 The management approach and its components Employment and Diversity
and Equal
418-1 Substantiated complaints concerning breaches of Customer first
Opportunity 103-3 Evaluation of the management approach Employment and Diversity
customer privacy and losses of customer data
405-1Diversity of governance bodies and employees Statistical Table GRI 419 103-1 Explanation of the material topic and its Boundary Implementing compliance
Socio requirements
GRI-406 103-1 Explanation of the material topic and its Boundary Employment and Diversity economic 103-2 The management approach and its components Implementing compliance
Non- Compliance
103-2 The management approach and its components Employment and Diversity requirements
discriminati
103-3 Evaluation of the management approach Implementing compliance
on 103-3 Evaluation of the management approach Employment and Diversity
requirements
406-1 Incidents of discrimination and corrective actions Employment and Diversity 419-1 Non-compliance with laws and regulations in the Implementing compliance
taken social and economic area requirements
Employmen
t
103-3 Evaluation of the management approach Protecting employee rights
401-1New employee hires and employee turnover Statistical Table

Statistical Table
Indicators Unit 2019 2018 Note：
Water, electricity, and gas consumption information are from the statistics of COSCO SHIPPING Lines' headquarters.
Electricity (mWh) 5,171.49 5,463.12 Production water, fuel consumption, and exhaust emission data are from the of COSCO SHIPPING Lines' ships
Electricity Electricity per capital purchasing fuel oil. The data of CO2 emission, wastewater and waste are from the COSCO SHIPPING Lines'
4.70 4.97 headquarters and its ships purchasing fuel oil. The denominator (per capital) is based on the number of employees
(kWh/capital) working at the headquarters, which is 1,100.
Production water (ton) 177,327.30 190,386.90
* means we have revised the data for 2018 based on the actual situation.
Domestic water (ton) 38,972.00 43,198.00
1.Scope1: CO2 Emission factor=3110g/kg fuel by IMO MEPC/29/18/Dec.1989
Water Total water (ton) 216,299.30 233,584.90
2.Scope 2: Emission factor of carbon dioxide: two year average of South China CO2 emission factors of China's
Water intensity Regional Power Grid in 2011 and 2012:0.7082tco2/MWH, 3,662.45t = 5171.49mwh * 0.7082t/MWH, and the factor can
2.19 2.56
(ton/RMB10,000 Turnover)* be found from the following document: Average Carbon Dioxide Emission Factors of China's Regional Power Grid in
2011 and 2012
Gas (m3) 330,515.00 391,177.00
Gas 3. SOx emission factor : 60g SOx/kg fuel.
Gas intensity（m3/capital） 300.47 355.61
NOx two-stroke emission factor： 90g NOx/kg fuel.
Fuel oil (heavy oil)(ton) 4,950,552.52 4,992,708.20
4.COSCO SHIPPING has added 10 large vessels in 2019, so the oily water generated has increased compared with last
Diesel oil (light oil)(ton) 172,200.08 156,776.80 year.
Fuel
Total fuel (ton) 5,122,752.60 5,149,485.00
Fuel intensity (kg/ kiloton per

4.56 4.79
nautical mile)
Grease (ton) 14,776.60 11,698.80
Grease Grease intensity (kg/ kiloton per
0.01 0.01
nautical mile)
Gasoline (ton) 19.14 19.96
Gasoline Gasoline intensity (ton / person
0.02 0.02
million)
CO2 emission (ton) –direct1 15,931,758.72 16,014,898.35
CO2 emission intensity-direct
14.18 14.90
Greenhouse gas (kg/kiloton per nautical mile)
CO2 emission (ton) -indirect 3,662.452 na
CO2 emission intensity-indirect
3.33 na
(ton/capital)
Nitrogen Oxides (NO x)(ton) 461,047.68 463,453.66
NO x emission intensity (kg/kiloton
0.41 0.43
per nautical mile)
Air Emission3
Sulphur Oxides (SO x)(ton) 307,365.12 308,969.10
SO x emission intensity (kg/kiloton
0.27 0.28
per nautical mile)
Oily water (ton) 91,520.904 76,251.30
Domestic waste water (ton) 35,074.80 38,878.20
Waste water
Waste waste intensity (ton/million
1.28 1.26
RMB turnover)*
Production hazardous waste (m3) 2,237.06 2,136.27
Hazardous waste intensity
0.02 0.02
(m3/million RMB turnover)
Wastes
Domestic non-hazardous waste (kg) 92,400.00 92,400.00
non-hazardous waste
0.94 1.01
intensity(m3/million RMB turnover)
Dangerous Goods Handling quantity of dangerous
161,169.00 148,346.00
goods (TEU)

Statistical Table Indicators1 Unit 2019 2018
Employee turnover Percentage of mainland contracted employee (person) 4.28 /
Indicators1 Unit 2019 2018
rate by region Percentage of hong Kong contracted employee (person) 0.00 /
Total Total employee (person) 17,249 17,080
Percentage of foreign contracted employee (person) 3.14 /
By gender Contracted male employee (person) 8,929 8,477
Employee turnover / Contracted employee age: ≤ 30 (person) 247 350
Contracted female employee (person) 6,288 6,620
by age Contracted employee age: 30~50 (person) 281 156
By age Contracted employee: ≤30 (person) 2,163 2,440
Contracted employee age: ≥50 (person) 60 172
Contracted employee: 30-50 (person) 9,384 10,774
Employee turnover Percentage of contracted employee age: ≤ 30 (person) 11.42 /
Contracted employee: ≥50 (person) 3,670 1,883
rate by age Percentage of contracted employee age: 30~50 (person) 2.99 /
By employment type Contracted employee (person) 15,217 15,097
Percentage of contracted employee age: ≥50 (person) 1.63 /
Part-time employee (person) 2,032 1,983
Employee Turnover (person) of contracted employee 588 678
By full-time, part-time Full-time (person) 17,249 /
turnover/total ratio Turnover rate of contracted employee 3.86 4.49
type Part-time (person) 0 /
Occupational injury Work-related fatalities (person) 0 0
By area Mainland contracted employee (person) 10,191 10,436
Ratio of Work-related fatalities 0 0
Hong Kong contracted employee (person) 188 /
Work-related injuries (person) 1 0
Foreign contracted employee (person) 4,838 4,661
Total number of missed work days 0 0
By level2 Contracted employee of management level (person) 9 11
Injury rate by thousand person (‰) 0.0657 0
Other contracted employee (person) 15,208 15,086
Training4 Trained contracted employee 10,191 15,097
New come staff Total number of new male employees (person) 152 178
Total hours of training 260,136 310,707
Total number of female new employees (person) 126 155
Percentage of contracted employee 100.00 100.00
Total number of new employees under 30 years old
172 230 Trained contracted male employee (person) 6,403 8,477
(person)
Total number of new employees 30-50 years old Percentage of contracted male employee 100.00 100.00
106 103
(person) Trained contracted female employee (person) 3,788 6,620
Total number of new employees over 50 years old
0 0 Percentage of contracted female employee 100.00 100.00
(person)
Total number of new employees in China (person) 66 90 Trained contracted employee of management level
9 11
(person)
Total number of new employees in overseas(person) 212 243
Percentage of contracted employee of management level 100.00 100.00
Governing body Total number of board members (person) 113 11
Other trained contracted employee (person) 10,182 15,086
Number of male board members (person) 10 8
Percentage of other contracted employee 100.00 100.00
Number of female board members (person) 1 3
Average training Average training hours of male employee（hour） 18.10 /
Board of Directors below 30 years old (person) 0 0
hours12 Average training hours of female employee（hour） 36.40 /
Board of Directors 30-50 years old (person) 1 8
Average training hours of management employee（hour） 11.68 /
Board of directors over 50 years old (person) 10 3
Average training hours of other employee（hour） 25.80 /
Number of minority and vulnerable groups on the
0 0 Suppliers Domestic 8,756 7,286
board (person)
Total number of contracted male employees (person) Overseas 1,881 1,617
Employee turnover / by 351 381
gender Total number of contracted female employees Number of complaints Number of complaints (pieces)
237 297 received about products 2 8
(person)
Percentage of contracted male employees and services
Employee turnover rate 3.93 /
Number of corruption suits Number of cases (pieces)
by gender Percentage of contracted female employees 3.77 /
filed and concluded by the 0 0
Employee turnover / by Mainland contracted employee (person) 436 513 company or its employees
region Hong Kong contracted employee (person) 0 / Note：
2. The statistical scope of the number of COSCO Shipping Lines Management level is the leadership of COSCO Shipping
Foreign contracted employee (person) 152 165 Lines headquarters.
Note： 3. Three of them are members of the Board of Supervisors.
1.In 2019, the formula for calculating the turnover rate by different categories is: the number of resigned employees in this 4. The training data of COSCO SHIPPING Lines in 2018 includes overseas employees. In 2019, due to statistical
category / the total number of employees in this category as of December 31, 2019; the formula for calculating injury rate by inconveniences, the training data of overseas employees was not covered, and only the training data of contracted
thousand person is: number of injuries / regular employees / 1,000 ; The formula for calculating the training rate of employees in mainland China was included. Among the contracted employees in mainland China, the number of male
employees in different categories is: the number of employees trained in this category / the total number of employees employees, female employees, management level employees and other employees was 6,403; 3,788; 9; 10,182.
trained in this category. 5. The formula for calculating the average training hours of COSCO SHIPPING Lines is: cumulative training hours of same
category employees / trained number of same category employees.
Report Scope
The entity disclosed in this report is prudently selected based on the selection criteria of "whether
there is actual business operation", and takes into account the overall impact of the entity on
COSCO SHIPPING Lines' environmental, social and governance. According to our selection
process, the list of specific subsidiaries is shown below.
NO. Name of Company NO. Name of Company

1 SHANGHAI PANASIA SHIPPING CO.,LTD 21 COSCO SHIPPING Lines (Ningbo) Co., Ltd.
2 SHANGHAI COSCO INFORMATION & 22
Sanlly Container Services Co., Ltd.
TECHNOLOGY CO., LTD.
3 Shanghai COSCO SHIPPING Lines Global 23
COSCO SHIPPING Lines (North America) Inc.
Service Centre Ltd.
4 COSCO SHIPPING International Freight Co., 24
COSCO SHIPPING Lines（Europe）GmbH
Ltd.
5 COSCO SHIPPING Lines Agency Co., Ltd. 25 COSCO SHIPPING Container Line Agencies
Limited
6 COSCO SHIPPING Lines South-China Co., Ltd. 26 New Golden Sea Shipping Pte Ltd
7 SHANGHAI OCEAN SHIPPING CO.LTD 27 COSCO CONTAINER LINES (HONGKONG)
CO.,LIMTED
8 China Shipping Container Lines Hainan Co.,Ltd. 28 COSCO SHIPPING Lines (Korea) Co.,Ltd.
9 Tianjin Binhai COSCO SHIPPING Lines 29
Coheung Maring Shipping Co.,Ltd.
Logistics Co., Ltd.
10 Shanghai COSCO SHIPPING Lines Logistics 30
COSCO SHIPPING Lines (Japan)Co.,Ltd.
Co., Ltd.
11 COSCO SHIPPING Lines (Dalian) Co.,Ltd 31 COSCO SHIPPING LINES (OCEANIA) PTY LTD
12 COSCO SHIPPING Lines (Xiamen) Co.,LTD 32 COSCO SHIPPING LINES ( Panama )
INCORPORATION.
13 COSCO SHIPPING Lines (Tianjin) Co., Ltd. 33 COSCO SHIPPING Lines (Brasil) S.A.
14 COSCO SHIPPING Lines (Shanghai) Co., Ltd 34 COSCO (Cayman) Mercury Co.Ltd
15 COSCO SHIPPING Lines (Qingdao) Co., Ltd. 35 GOLDEN SEA SHIPPING PTE. LTD.
16 COSCO SHIPPING Lines（Wuhan) Co.,Ltd. 36 COSCO SHIPPING Lines (Central America)
Incorporation
17 Wuhan Cosco Logistics Co.,Ltd 37 COSCO SHIPPING Lines (South Africa) Pty. Ltd.
18 COSCO SHIPPING Lines Agency (Shanghai) 38
COSCO SHIPPING Lines West Asia FZE
Co., Ltd.
19 COSCO SHIPPING Lines Agency (Xiamen) 39
Tianjin Port Cimc-zhenhua Logistics Co., Ltd.
Co.,Ltd.
20 COSCO SHIPPING Lines (Hainan) Co.,Ltd.
Note:
Compared with the previous year, in 2019, the sold YANGPU COSCO SHIPPING REFRIGERATION STORAGE &
TRANSPORTATION CO.,LTD. was deleted, and Tianjin Port CIMC Zhenhua Logistics Co., Ltd., which was acquired
during the year, was added.
Report Verification

Address: No. 378, Dongdaming Road, Hongkou District, Shanghai
Zip Code: 200080 2019 Sustainability Report
Official Website: http://lines.coscoshipping.com
The present report is owned by COSCO SHIPPING Lines Co., Ltd., which
shall not be reproduced without permission.

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COSCO SHIPPING Lines Co., Ltd.

2019 Sustainability Report

2019 Sustainability Report 2019 Sustainability Report

Sustainable Development Governance 06 Organization Name:

Development and Responsibility in Production

2019 Sustainability Report 1 2 2019 Sustainability Report

Total assets 99.64 Billion RMB Increase rate 2.28%

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Labor complaints Internal Providing effective, practical training for employees

2019 Sustainability Report 9 10 2019 Sustainability Report

2019 Sustainability Report 2019 Sustainability Report

As of November 30, 2019, we owned and controlled

2019 Sustainability Report 17 18 2019 Sustainability Report

Each year, we conduct guidance on flood and

The company's "General Duty Room / Emergency

2019 Sustainability Report 23 24 2019 Sustainability Report

2019 Sustainability Report 2019 Sustainability Report

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Indicator 2017 2018 2019

2019 Sustainability Report 39 40 2019 Sustainability Report

COSCO SHIPPING Lines has undertaken to refuse

2019 Sustainability Report 2019 Sustainability Report

Training 260,136 Training 10,191

By the end of the reporting period, the total number of

employees was 15,217, and the number of outsourced

2019 Sustainability Report 45 46 2019 Sustainability Report

2019 Sustainability Report 47 48 2019 Sustainability Report

A A1 Emissions Energy conservation B B1 Employment Employment and

Description of energy use efficiency initiatives and results achieved.

reference to per unit produced. 营造和谐的工作环境

B B5 Supply Chain Management Supplier Management B B8 Community Practice charity

(a) the policies; and

Description of practices relating to observing and protecting intellectual property rights.

Description of quality assurance process and recall procedures.

B6.5 Customer first

(a) the policies; and

2019 Sustainability Report 53 54 2019 Sustainability Report

Index Table for GRI index be

About the Report

2019 Sustainability Report 55 56 2019 Sustainability Report

401-1New employee hires and employee turnover Statistical Table

2019 Sustainability Report 57 58 2019 Sustainability Report

Fuel intensity (kg/ kiloton per

2019 Sustainability Report 59 60 2019 Sustainability Report

NO. Name of Company NO. Name of Company

2019 Sustainability Report 65 66 2019 Sustainability Report

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