GTJAI Releases 2024 ESG Report

2025/05/06

【Hong Kong, 6 May 2025】Guotai Junan International Holdings Limited ("GTJAI" or the "Company", stock code: 1788.HK) releases 2024 ESG Report. In 2024, GTJAI made all-round efforts in the field of ESG and demonstrated with excellent results that it deeply integrated ESG concepts into all levels of its operations, injecting strong impetus into high-quality development of the Company and sustainable progress of society.

GTJAI has always adhered to the governance principles of transparency, compliance, and integrity, integrated ESG requirements into the Company's governance system, ensured that business activities are legal and compliant, steadily promoted the sustainable development strategy, and created value for stakeholders.

The Company has established a sound ESG governance structure comprising three levels (supervisory, management, and execution), clarifying responsibilities and authorities across all levels to ensure the effective implementation of ESG principles throughout decision-making, execution, and oversight processes. The Board of Directors serves as the highest governance level, overseeing ESG-related matters. The ESG Committee, chaired by an independent non-executive director, operates at the management level to formulate sustainability visions and strategies, identify ESG risks and opportunities, and ensure compliance with ESG policies and regulations. Three specialized working groups under the Committee-Sustainable Finance, Environmental and Social -develop concrete implementation plans.

GTJAI places a high priority on understanding and addressing the views and concerns of its key stakeholders. A total of 558 responses were received to the Company's ESG Issues Stakeholder Survey in 2024. The Company seriously listens to the opinions and suggestions of its stakeholders and creates a favorable external environment for the Company's sustainable development.

Green and sustainable finance has emerged as a crucial factor in facilitating the transition to a low-carbon economy. GTJAI, as a responsible financial institution, continues to incorporate ESG considerations, including climate change matters, into its investment and financing activities. In 2024, the Company achieved impressive results in the field of sustainable finance and successfully completed 90 sustainable financing projects with a total issuance volume of HK$179.8 billion, doubling the number of projects and more than doubling the issuance scale compared with 2023. The private equity sector remained highly engaged in ESG and sustainable industries, with 51% of its investments focused on ESG-related sectors.

Outstanding sustainable finance projects:

• As the lead sponsor, joint global coordinators, joint bookrunners, and joint lead managers, we successfully assisted Jiangsu Lopal Tech. Co., Ltd., a leading enterprise in the field of green new energy core materials, to be listed on the Main Board of the Hong Kong Stock Exchange

• As the joint global coordinators and ESG advisor, we assisted Science City (Guangzhou) Investment Group Co., Ltd. to issue US$400 million offshore green bonds

• As the lead global coordinator and ESG advisor, we assisted Guangzhou Industry Investment Fund Management Co. Ltd. to issue US$250 million sustainable bonds

From green bonds and sustainable bonds to IPO projects in green and sustainable industries, GTJAI has provided diversified products and services to help our clients accelerate their low-carbon transformation and promote the green development of the economy. At the same time, the Company has deeply integrated the ESG concept into the entire investment process. Through scientific screening, dynamic monitoring, active communication, and professional evaluation, it ensures that the investment portfolio not only has economic benefits but also social responsibilities.

In addition, in 2024, GTJAI launched the first multi-currency sustainability-linked loan in the securities industry in Hong Kong and the Mainland China, setting a benchmark for the sustainable development of the industry.

GTJAI understands its responsibility as an enterprise to protect the environment and is committed to operating in a way that minimizes harm to the environment and serves as a model for the industry in terms of environmental protection. In 2024, the Company continued to practice energy conservation and emission reduction at the operational level, and achieved an outstanding result of four consecutive years of decline in total greenhouse gas emissions. On this basis, the Company successfully offset its carbon

emissions (932.28 tons of carbon dioxide equivalent) in 2023 by subscribing for carbon credits from the VCS forestry project for the second consecutive year, achieving "carbon neutrality" at the operational level.

In addition, the Company has achieved significant results in energy consumption management and waste treatment. At an energy consumption intensity of only 0.01 MWh per square foot, the total amount of non-hazardous waste was 16.46 tons, compared with a 16% reduction from 2023, and the hazardous waste recycling rate was 100%. These milestones are a strong testament to the Company's proactive response to climate change and enhanced environmental management.

In view of the growing importance of climate change, the frequency of extreme weather events and the significant losses and wide-ranging impacts caused by such events have further confirmed the seriousness of the issue of climate change. GTJAI attaches great importance to the issue of climate change and is committed to strengthening its own climate resilience and working with its clients to promote the development of a low-carbon economy. In 2024, the Group further updated its Climate Change Policy to strengthen the management of climate-related risks and opportunities, and to mitigate the related impacts by improving the climate risk management framework and internal control policies to ensure that the Company maintains a solid development position in addressing the challenges of climate change.

Promoting digital transformation to enhance service quality

GTJAI continues to advance its digital transformation strategy, safeguard services and products responsibility, strengthen technological innovation, data management, and digitalization to enhance overall business development and better meet client needs.

In terms of investor communications, GTJAI places emphasis on meeting the needs of a diverse investor base through educational programs. In 2024, GTJAI furthered advanced investor education by hosting the "818 Wealth Management Festival". The live stream of the event attracted over 100,000 participants. In addition, the Company newly launched a dedicated column "Inclusive Finance - Investment Encyclopedia" across its social media platforms to provide the public with clear and engaging basic financial knowledge.

To ensure that customer service continues to be of a high standard, GTJAI conducted a comprehensive customer satisfaction survey in 2024. The survey results show that the overall customer satisfaction rate exceeded 97.02%.

Creating an inclusive work environment for employee growth and development

Upholding GTJAI's business philosophy of "Talent as the First Resource" and embracing the principle of "People-oriented, Collaborative Cooperation", employees are regarded as the Company's most valuable asset. The Company remains committed to fostering an inclusive and supportive working environment, consistently enhancing employee welfare, promoting work-life balance, and providing employees with the resources necessary for professional growth and development to help employees realize their personal values and career development goals.

In 2024, GTJAI made significant progress in building a diverse and inclusive workforce. As of the end of 2024, women represented 45% of the workforce, while female directors accounted for 25% of the board of directors, which surpasses the industry average. Furthermore, 84% of new hires were under the age of 35.

In terms of employee training and development, GTJAI has also achieved great results. In 2024, total employee training hours amounted to 18,986.7 hours, compared with an increase of 792.8 hours from 2023, and the average number of employee training hours amounted to 30.48 hours. Through continuous investment in training, the Company provides employees with a wide range of learning opportunities to help them enhance their professional skills and comprehensive quality and promote their career development. The satisfaction rate of this year's employee satisfaction survey was as high as 90%.

Practicing corporate social responsibility, delivering love and care

GTJAI is well aware that the development of the Company is closely related to social well-being. With the theme of "Love • Infinity, Green • Future", we have actively engaged in social welfare undertakings, focusing on helping vulnerable groups and environmentally sustainable development. We have conveyed warmth and care with practical actions and promoted social harmony and integration. In 2024, the Company's employees volunteered a total of 502.5 hours, compared with an increase of 144 hours from 2023.

GTJAI organized a wide range of public service activities, including charity fundraising events, providing nutritious meals to the underprivileged and marginalized communities, engaging elderly and promoting social interaction and providing assistance to children with special educational needs, etc. These activities have fully demonstrated GTJAI's proactive role and good image as a financial institution in terms of social responsibility.

In the past year, the Company's ESG practices have been widely recognized by international authoritative institutions. MSCI has upgraded the Company's ESG rating to "A". Wind ESG and SynTao Green Finance

have also awarded the Company an "A" rating, indicating that the Company's outstanding performance and strategic determination in the field of sustainable development have been highly recognized. Standard & Poor's has also increased the Company's ESG score, leading nearly 84% of our peers globally.

At the same time, the Company has won ESG-related awards issued by quite a number of international authoritative institutions such as "Institutional Investor", "The Asset", "Bloomberg Businessweek", and "Corporate Governance Asia", marking the Company's prominent position in the ESG field. For the 3rd consecutive year, the Company was named one of the "Best Companies to Work for in Asia" by HR Asia, which also recognized the Company with the "Diversity, Equity, and Inclusion Award" for the 2nd consecutive year, the "Caring Company" designation for the 10th consecutive year and the "Happy Company Award" for the 7th consecutive year. These honours are a high commendation for our longterm efforts and a strong driving force to inspire us to keep making breakthroughs.

Looking ahead, GTJAI will continue to take the development vision of "Based in Hong Kong, Backed by the Motherland, and Serving the World" as its guide and deeply integrate the ESG concept into its strategic planning and business operations. With innovation as the engine, cooperation as the link, and responsibility as the cornerstone, we will move forward firmly on the path of sustainable development, create greater value for stakeholders, and contribute more to building a sustainable and prosperous future!

For the full report, please refer to:

https://www1.hkexnews.hk/listedco/listconews/sehk/2025/0429/2025042902746.pdf