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CONTENTS
ABOUT THIS SUSTAINABILITY REPORT
Reporting Approach

2

CHAIRMAN’S MESSAGE TO STAKEHOLDERS

4

1. ABOUT CSIBusiness Overview
Awards and Recognition
2022 Sustainability Highlights

7

2. OUR SUSTAINABILITY APPROACH
Sustainability Commitment
Materiality Assessment
Stakeholder Engagement12

3. CORPORATE GOVERNANCE
Sustainability GovernanceRisk Management
Business Ethics
Anti-bribery and Corruption

18

4. EXCELLENCE IN INVESTMENT SERVICES
Sustainable Finance
ESG Insights
ESG Investment
Integrating Climate Risk in Investments

27

5. VALUE CHAIN
Customer Satisfaction and Responsibility
Customer Privacy
Information Security
Intellectual Property Rights
Supply Chain Management35

6. OUR PEOPLE
Caring for Our Employees
Diversity, Inclusion, and Non-discrimination
Employee Development and Training
Health, Safety, and Wellbeing

39

7. OUR ENVIRONMENTAL PERFORMANCE
Environmental Compliances and Policies
Emissions
Climate Change
Energy Management
Waste Management48

8. OUR COMMUNITY

56

9. ASSURANCE STATEMENT

66

10. APPENDICES
Appendix I – Key Performance Summary
Appendix II – GRI Standards Content Index

69

ABOUT THISSUSTAINABILITY REPORTCITIC Securities International (the “Company” or “CSI”), and its subsidiaries (collectively, the “CSI Group”,“we” or “our”) is pleased to publish its Sustainability Report (the “Report”) for the year ended 31 December
2022. This Report outlines the CSI Group’s commitment, approach and achievements in four key areas: theenvironment, the employees, the value chain and the community.
This Report has been reviewed and approved by the CSI Group’s board (the “CSI Board”) of directors (the“Directors”), including the material topics and the ESG performances.

Reporting Approach
Reporting Period
This Report provides an overview of the CSI Group’s Environmental, Social and Governance (“ESG”)
performance during the reporting period of 1 January 2022 to 31 December 2022.

Reporting Scope
The scope of this Report includes all areas of the CSI Group’s business operations that have ESG significance to
the CSI and its stakeholders, which covers the CSI Group’s operation in Hong Kong, Mainland China, Australia,
India, Indonesia, Japan, Malaysia, Netherlands, Philippines, Singapore, South Korea, Thailand, United Kingdom,
and the United States.

Reporting Standards
This Report has been prepared in accordance with the Global Reporting Initiative (“GRI”) Standards, andwith reference to the standards for Investment Banking and Brokerage set by the Sustainability AccountingStandards Boards (“SASB”) and the recommendations from the Task Force on Climate-Related Financial
Disclosures (“TCFD”).

2

CSI Sustainability Report 2022

ABOUT THISSUSTAINABILITY REPORT
Reporting Principles
This Report have adopted the fundamental reporting principles of the GRI Standards, including:Accuracy

Balance

Qualitative information in the Report has
been reported in consistent with the available
ev i d e n c e . I n f o r m a t i o n o n t h e s t a n d a r d s ,methodologies, assumptions, and/or calculation
tools used, and sources of conversion factors
used, have been disclosed when applicable.

The CSI Group’s performance during thereporting period has been presented in an
impartial manner, avoiding choices, omissions orpresentation formats that may unduly influence
readers’ decisions or judgements. Performancedata is reported in a way that allows information
users to see negative and positive year-on-year
trends in impacts.

ClarityComparability

Information presented in the Report isaccessible and understandable, and reported
in a concise way without omitting necessary
details. A content index has been prepared foreasy navigation of information.

Consistent statistical methodologies andpresentation of data have been used to allow
meaningful comparisons of related data overtime.

CompletenessTimeliness

Activities, events and impacts for the reporting
period have been presented without omitting
information that is necessary for understanding
the CSI Group’s impacts.

Consistency has been maintained for the lengthsof reported information. Time period covered by
the Report has been indicated clearly.

Sustainability Context

Verifiability

Information about the CSI Group’s impacts
has been reported in relation to sustainable
development goals and conditions.

Decision-making processes underlying
the Report has been documented to allow
examination of the key decisions and processes.
Internal controls have been set up anddocumentation has been organised to facilitate
verification processes.

Information and Feedback
The CSI Group welcomes feedback on its Report and other sustainability-related matters. Please give yoursuggestions or share your views with us at: communications@CLSA.com.

3

CSI Sustainability Report 2022

CHAIRMAN’S MESSAGE
TO STAKEHOLDERS

Dear Stakeholders,
As the world returns to normalcy from the pandemic, both markets andenterprises have been reshaped, leading to a re-evaluation of businesssustainability approaches. More investors, especially institutional investors,
have recognized the importance of responsible investment and have integrated
environmental, social and governance factors with their investment process.
Policymakers have become significantly cautious and have launched a wide
variety of ESG regulations across various nations. With the growing emphasis
on climate change and the transition to a low-carbon economy, forward thinking
enterprises have already initiated the measures of identifying climate change
related risks and opportunities to tackle the problem in advance and to benefit
their business in long run.
As an international leading financial institution, CSI actively undertakes its
corporate and social responsibilities in the aspects of sustainable finance,
environmental-friendly operations, employees’ development, and social harmony
by integrating ESG philosophy into our daily business and operation processes.

4

CSI Sustainability Report 2022

CHAIRMAN’S MESSAGE
TO STAKEHOLDERS
Aiming to be an active practitioner of responsible investment and green
finance, CSI continuously promotes the responsible investment strategies anddeeply involves in the development of innovative ESG products. In 2022, ourinvestment banking team underwrote 49 overseas green and ESG bonds, withover USD 18.15 billion raised in total. Additionally, the team assisted 5 newenergy companies in issuing GDRs, raised a total of USD 3.35 billion. CSI has
also achieved great results in the innovation of ESG-themed products. Ourinvestment banking team led the successful issuance of the first US$400 million
biodiversity-themed green bond in Europe, which was also the world’s first USDdenominated biodiversity-themed green bond.
In addition, for CSI’s alternative investment management business, we haveremained committed to implementing ESG risks and opportunities evaluation in
our investment decision making process. Our well-designed ESG-themed funds,
such as CSI’s Clean Resources Focused Fund , have showcased our capabilityof achieving the best interests of investors, society and the environment, atthe same time taking ESG issues into full consideration. CSI’s flagship Chinamarket USD Private Equity Fund invested in a leading provider of cutting-edgestorage solutions and battery management systems, which has been awarded
the ‘Venture 50 in Carbon Neutrality’ by PE Daily and Zero2IPO in 2022.
Our outstanding performance in sustainable investment has once again beenrecognized by the capital market.

Sustain Asia , CSI’s renowned research brand, remains dedicated to providing
sustainability insights for institutional clients, for them to incorporate ESG
factors into their investment decisions. In 2022, our research department
published an in-depth report on gig-worker welfare in Asia, analysing andcomparing the welfare provided to temporary workers by relevant companies
in the region. The report was highly acknowledged by stewardship-focusedinvestors who used it to engage with their interested companies, by which
way the research has brought tangible impact to the society. In January 2022,
CSI launched a live online research platform to provide daily ESG news andsustainability research in Asia region, making us the first investment bank tohave our own dedicated ESG research platform.

5

CSI Sustainability Report 2022

Underwrote 49 overseas
green and ESG bonds,
with over

USD 18.15 billion
raised in total

CHAIRMAN’S MESSAGE
TO STAKEHOLDERS

759 employees fromour global offices
volunteered over

1,000

hours

CSI strives to be an excellent corporate citizen, and actively carries out all kindsof social welfare activities to make meaningful impact on the communities weserve. In 2022, 759 employees from our global offices volunteered over 1,000
hours through CSI’s Community Outreach , a social welfare improving program
focusing on education improvement, diversity and inclusion, poverty alleviationand environmental sustainability. Through our over 30 Community Outreachactivities across global offices in 2022, CSI’s employees contribute their own
time and skills to worthwhile local causes, including caring elderly from lowincome families via food donation and caring hotline, inspiring local students
on their career planning, recycling daily waste materials, and protecting theenvironment by tree planting and clean-up shorelines etc.
To better implement CITIC Securities’ global philanthropy strategy, the prior
CLSA Chairman’s Trust changed its name to CITIC CLSA Trust in February 2022.
The Trust made a charitable donation of over HK$500,000 to Po Leung Kuk(“PLK”), one of the largest charitable organizations in Hong Kong, to joint launch
the new “CITIC CLSA Trust × PLK Hotmeal Program for the Elderly”, which is set
to benefit over 40,000 people in total in 2023.
Stepping into 2023, CSI will continue to not only integrate our ESG philosophy
into our various levels of business operation, but also leverage the role offinancial intermediary to support our clients and society in transitioning to a
low carbon economy. While undoubtedly facing challenges in the ever-changing
business landscape, CSI will stick to our path of creating lasting value and abetter future of our society.

Yours sincerely,
Chunbo LI
Chairman of CITIC Securities International

6

CSI Sustainability Report 2022

SECTION 1

ABOUT CSI– Business Overview– Awards and Recognition– 2022 Sustainability Highlights

7

CSI Sustainability Report 2022

ABOUT CSIBusiness Overview
Established in Hong Kong in 1986, CLSA Limited (“CLSA”) is Asia’s leading investment and capital markets
group. CSI acquired CLSA in 2013 and, in 2017, CLSA integrated its business with CSI under the CLSA brand.
Following recent adjustments to our corporate structure, the CSI brand now more accurately represents thebusiness scope in this report as the holding company of CLSA B.V..
CSI connects global institutional investors, corporations, governments and high-net worth individuals toinsights, liquidity, and capital directly and indirectly through CLSA to drive their investment strategies. CSI
has built an extensive network over three decades, including under the CLSA brand name, with deep local
knowledge and connections across 13 countries and 15 markets in Asia. Globally, CSI serves clients from Asia,
Australia, Europe and the United States.
CSI provides corporate finance and capital markets, asset management, alternative investment, wealthmanagement and securities services to global corporate and institutional clients. For more information about
CSI, please visit our website at https://www.CLSA.com/about/.
CSI’s key areas of business are:
Institutional Services

Retail Services

CORPORATE FINANCE& CAPITAL MARKETSSECURITIESASSET MANAGEMENTALTERNATIVEINVESTMENTMANAGEMENTWEALTHMANAGEMENT• Capital markets – ECM /DCM• Institutional equities• Active investment• Retail broking• Corporate finance –M&A• Equity derivatives• Fixed income• Quantitative
investment• Private equity andothers• Equity-linked• Structured finance• Cross-borderinvestment solutions• Private credit• Private real estate• Margin lending• Advisory

Awards and Recognition
At CSI, we strive for excellence in everything we do. Our overarching objective is to provide industry-leading
insight, differentiated execution and access to capital that empowers and enables our clients’ investment
decisions. We’re incredibly proud of our team’s hard work and dedication, which have consistently earned
recognition from prestigious industry awards and honors.
Our relentless focus on incorporating ESG considerations into our business practices has garnered acclaim, as
proven by the accolades we received in 2022. The table below provides a snapshot of the ESG-related awards
we were honored with during the Reporting Period. For a comprehensive list, please visit our website.

8

CSI Sustainability Report 2022

ABOUT CSIIssued byAwardsThe Asset 2022 Triple
A Country Awards for
Sustainable FinanceBEST SUSTAINABILITY/GREEN BOND
CITIC CLSA as the bookrunners and lead managers of:• Bank of China – US$400 million fixed rate sustainability bond/US$300
million two-year fixed rate green bond/US$300 million three-year fixed
rate green bondBest Deals in SEA
CITIC CLSA as the international bookrunners of:• Best IPO: Citicore Energy REIT Corporation – 6.40 billion pesos IPO
CITIC CLSA as the lead arrangers of:• Most Innovative Deal: ACEN Corporation – 17.4 billion pesos energy
transition mechanism for South Luzon Thermal Energy Corporation

The Asset Triple A
Sustainable CapitalMarkets Awards 2022

CITIC CLSA as the bookrunner of:• Best Green Bond – Renewable Energy: China Merchants Bank (Sydney)
US$400 million renewable energy-themed green notes
CITIC CLSA as the bookrunner and lead manager of:• Best Green Bond – Carbon Neutrality: Industrial and Commercial Bankof China US$2.68 billion equivalent multi-branch, multi-currency carbon
neutrality-themed green bond• Best Green Bond – Transmission: State Grid International Development
Company US$350 million senior unsecured green bond

Asiamoney Brokers
Poll 2022

9

CSI Sustainability Report 2022

• No.1 Best brokerages for ESG research – Indonesia• No.3 Best brokerages for ESG research – Malaysia

ABOUT CSI
2022 Sustainability Highlights
Economic Performance
Revenue

US$924.53

US$1,414.35

vsUS$1,414.35 million(2021)

million53 %Net Profit

US$125.23

millionESG Solutions and Services

Committed in sustainable investment

49 overseas green and ESG bonds,
with over USD 18.15 billion raised in total
Underwrote

5 new energy companies in issuing GDRs,
raised a total of USD 3.35 billion
Assisted

Differentiated ESG research products increased
from

150 in 2021 to 290 in 2022

Launched ESG website to become the first investmentbank with own dedicated ESG research platform

Environment
Certified to

ISO 14001

10

CSI Sustainability Report 2022

Environmental
Management System(2022)

ABOUT CSI

PeopleTotal numberof employees

Total training
hours

Average training
hours per employee

2,130

32,04315.04

persons

hours

hours

Gender distrbution

Average training hours by gender

38%
15.35

14.53

11.2
2021

62%
Male

10.9
2022

2021

2022
FemaleMale

FemaleCommunity
Total volunteer
hours

1,000

more
than

hours

employees

Total Community
Outreach activities
participated

Donated

more
than

31

11

CSI Sustainability Report 2022

Total number of
employees volunteered

750

HK$500,000
to local charitableorganization

SECTION 2OURSUSTAINABILITY
APPROACH– Sustainability Commitment– Materiality Assessment– Stakeholder Engagement

12

CSI Sustainability Report 2022

OUR SUSTAINABILITY
APPROACH
Sustainability Commitment
Our primary objective is to operate a successful and sustainable business that generates long-term value
for all shareholders while growing responsibly. As our business expands into global markets under CITIC
Securities, we remain committed to integrating sustainability into our investment processes and operations
and communicating transparently on our performance across various ESG-related topics. For further
information on our board governance, please refer to the “Corporate Governance ” section of this report.
Our Board of Directors, are ultimately responsible for managing our ESG risks and opportunities within
our overall sustainability framework. The implementation of this framework is delegated to CSI’s senior
management, who work to ensure that sustainability is integrated into all aspects of our business strategy anddecision-making.

Materiality Assessment
The materiality assessment process is crucial to the decision-making process of the CSI Group and its
sustainability reporting. It helps identify and prioritise the issues that matter most to its stakeholders. The
CSI Group has revised its materiality assessment process this year based on the updated GRI Standards,
incorporating considerations on the CSI Group’s context, actual and potential impacts and the significance of
the identified impacts.

13

CSI Sustainability Report 2022

OUR SUSTAINABILITY
APPROACH
Materiality Assessment Process

1
2
3
4

Understanding the CSI Group’s context
The Group’s context was understood based on internal assessment, the Materiality Finder of
Sustainability Accounting Standards Board Standards, and advice from external professionals

Identifying actual and potential impacts
Topics with high relevance to the Group’s actual and potential impacts were identified
and considered

Assessing the significance of the impacts
The Group’s impacts have been assessed. Topics relevant to significant impacts of theGroup have been determined as material topics

Validating the material topics
The Board and senior management have reviewed the materiality matrix and impact
assessment results, and validated the scope, topic boundaries and completeness of thematerial topics

To prepare this Report, we commissioned an external consultant to determine our material topics. Bothinternal and external stakeholders, including the CSI Group’s Board of Directors, senior management, frontline
and general staff, suppliers and contractors, clients, business partners and public were engaged to provide
insights on ESG material topics and challenges of the CSI Group’s operation. In the materiality assessment,
stakeholders were invited to rate a list of 38 topics in terms of their relevance and importance to the CSIGroup’s business development and sustainability, as well as to the wider community. The 38 topics in the list
are shown below.

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CSI Sustainability Report 2022

OUR SUSTAINABILITY
APPROACH
Materiality Matrix

HIGHER

Materiality of Different Topics from Stakeholder Engagement
32
30

31

5
1
2

35
29

External Interests

3

4

9

16

17

33

19

7
18

21

25
10

36

26
12

13

28

20

22

6

27

24

38
15

37
34

14

8

11

LOWER

23

LOWER

HIGHERInternal Assessment on Importance to BusinessA	Economic and Corporate
Governance
1
2
3
4
5
6
7

Economic PerformanceMarket Presence
Indirect Economic Impacts
Procurement Practices
Anti-corruption
Anti-competitive Behavior
Tax

B

Environmental

8 Material Consumption
9 Energy Management
10 Water and EffluentsManagement
11 Biodiversity
12 Emissions
13 Waste Management

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CSI Sustainability Report 2022

14	Environmental Compliance andPolicies
15	Supplier Environmental
Assessment
16 Climate Change Responses
C

Social17 Employment
18 Labor/Management Relations
19 Occupational Health and Safety
20 Training and Education
21 Diversity and Equal Opportunity
22 Non-discrimination
23	Freedom of Association andCollective Bargaining
24 Labor Standards
25 Human Rights Assessment
26 Community Engagement

27 Supplier Social Assessment
28 Customer Health and Safety
29 Marketing and Labelling
30	Customer Satisfaction andResponsibility
31	Customer Privacy andInterest Protection
32 Information Security
33 Intellectual Property Rights
34 Product Quality
35 Socioeconomic Compliance
D

Others36 Risk Management
37 Professional Integrity
38	Incorporation of ESG factors
in Investment Banking andBrokerage Activities

OUR SUSTAINABILITY
APPROACH
The matrix shows that a total of 11 topics were considered important to the CSI Group’s stakeholders andthe CSI Group’s business development. 11 topics include economic performance, market presence, anticorruption, employment, customer health and safety, customer satisfaction and responsibility, information
security, intellectual property rights, product quality, risk management, and professional integrity.

Assessment of Impacts
Apart from engaging the CSI Group’s stakeholders, the CSI Board and the management of the CSI Group (the“Management”) have assessed the actual and potential impacts that the CSI Group’s operation could bringbased on the external professional’s advice and the Materiality Finder of SASB Standards. The significance of
the impacts was also assessed.
Taking into consideration the Board’s comments, a total of 10 additional topics were identified to be material
based on the relevance to the CSI Group’s impacts. The topics are energy management, emissions, waste
management, environmental compliance and policies, climate change responses, training and education,
diversity and equal opportunity, community engagement, and incorporation of ESG factors in investmentbanking and brokerage activities.

Stakeholder Engagement
We strive to engage with all stakeholders in a responsible and sustained manner. Our main stakeholder
groups, how we regularly engage with them and key areas of focus are outlined below. The scope and content
of our sustainability reporting is informed by the issues that are material to our stakeholders, as raised during
the course of our ongoing communication.

16

Stakeholders

Engagement Methods

Clients•••••

Face-to-face meetings
Online servicing
Interim and annual reports
SurveysSeminars and conferences

Employees

•
•
•
•
•

Team meetings
Appraisals
Intranet
Trainings and workshops
emailsRegulators• Regular open dialogue• senior management meetings

Suppliers• Assessments• Contract negotiations• Review meetings

Community and non-profit
organizations (“NGOs”)• Directly through activities to provide voluntary support and funding• Daily interactions

Media• Daily interactions• Media releases• Media events such as roundtables and briefings

CSI Sustainability Report 2022

OUR SUSTAINABILITY
APPROACH
We interact with our stakeholders through different channels. Daily engagement with clients is conductedby front-line employees through phone calls, emails, messaging platforms, in-person meetings, and events.
Annual account reviews are held for securities clients and Limited Partners of CLSA’s Asset Managementbusinesses to receive investment updates and opportunities to question management about performance atAnnual General Meetings. Employee engagement includes annual staff performance management reviews.
We also engage with media on a daily basis both proactively and reactively, receive and respond to a numberof media inquiries regarding our business and market research, and cultivate an open dialogue with market
regulators to ensure that they are kept updated as to the changing nature of our operations.

17

CSI Sustainability Report 2022

SECTION 3CORPORATEGOVERNANCE– Sustainability Governance– Risk Management– Business Ethics– Anti-bribery and Corruption

18

CSI Sustainability Report 2022

CORPORATE
GOVERNANCE
Sustainability Governance
The CSI Board is responsible for overseeing the management of ESG risks and strategies across theorganization. The CSI Board sets strategic ESG goals to ensure that all employees work towards a common
objective and allocates resources to improve the CSI Group’s overall ESG performance. The integration of ESG
risk and opportunity management into CSI’s operations is a key priority for the company. Senior management
is responsible for implementing and reviewing the ESG strategies established by the CSI Board and for
improving CSI’s ESG performance. They closely monitor our ESG performance and take corrective action
when necessary, ensuring that we are meeting our ESG goals and continuously improving our performance.
In addition, senior management is responsible for ensuring that ESG considerations are embedded into ourdecision-making processes, identifying emerging ESG risks and opportunities, and keeping our stakeholders
informed of our progress towards our ESG goals.
Details of the management of climate risks are described in the “Environment ” section of this Report.

Board Structure
The CSI Board has overall responsibility for overseeing the CSI Group’s activities. The CSI Board sets ouroverall strategic direction and provides leadership to the CSI Group to deliver value for clients and otherstakeholders. CSI Board also supervises and manages the activities of the CSI Group, in conjunction with thesenior management and other relevant corporate bodies who are in charge of the setting and implementationof the strategies approved by the Board and the day-to-day running of the business. The chairman of the CSIBoard oversees operations of the whole CSI Group. He is also an executive director of the CSI Group. The CSIGroup has a robust system in place for nomination and selection of board members. The criteria and process
for appointing directors and managing directors of the CSI Group are outlined in Articles of Association of
CITIC Securities International Company Limited.

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CSI Sustainability Report 2022

CORPORATE
GOVERNANCE
The table below presents the composition of the CSI Board.
Director

GenderRoles

Other significant positions held

Chunbo LI

M

Chairman of the CSIBoard and Executive
Director

Member of Coordination Committee, Audit
Committee, Group Disciplinary Committee

Benliang SHI

M

Executive Director

Chief Financial Officer of CITIC Securities

Jianqiang XU

M

Executive Director

CEO of Wealth Management; Head of Equity
Derivatives& Prime Brokerage; Head of AssetManagement; member of Risk Management
Committee, Anti-Bribery and Corruption
Committee, Best Execution Committee

Yang YUM

Executive Director

Head of Investment Banking Department;
Member of Anti-Bribery and Corruption
Committee, Capital Commitment Committee,
Business Commitment Committee, Quality
Control Committee

Edward PARKM

Executive Director

Chief Executive Officer of Institutional Equities;
Member of coordination Committee, Risk
Management Committee, Anti-Bribery andCorruption Committee, Institutional Equities
Executive Committee

The CSI Board meets on a quarterly basis and minutes of the meetings are taken and circulated by the
Secretary. The primary responsibility of the CSI Board is to promote the long-term sustainable growth andsuccess of the CSI Group. In doing so, the CSI Board is committed to optimize the interests of the CSI Group
while upholding the highest standards of integrity, ethics and social responsibility. To effectively manage the
CSI Group, the CSI Board may delegate authority to the various committees and senior management of otherrelevant entities. Furthermore, the CSI Board regularly evaluates the overall leadership structure of CSI,
particularly at the senior management level, to ensure alignment with our business practices, personnel, andpolicies. Additionally, the CSI Board conducts a regular self-assessment of its performance, the outcome ofwhich will be discussed in Board meetings, generating annual self-appraisals by Board members. The latest
assessment was done in 2021 via the CLSA B.V. Board, with the findings and conclusions duly taken into
consideration in fine-tuning and upgrading the corporate governance framework and practices of the CSIGroup.
To avoid conflict of interest, the CSI Board discuss and resolve all significant matters in compliance with
common law principles to maintain transparency and prevent any potential conflicts from compromising theinterests of the CSI Group. Article 16 of CSI has outlined the guidelines addressing conflicts of interest.

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CSI Sustainability Report 2022

CORPORATE
GOVERNANCE
CSI’s regulated business lines are operated through various licensed entities within the CSI Group, with each
local Board appointed and/or controlled by the CSI Board. These local Boards are responsible for overseeing
the businesses and operations of their respective licensed entity and ensuring compliance with applicable legal
and regulatory requirements. They are also subject to examination and inspection by the SFC or other local
regulatory authorities. The CSI Board, in conjunction with senior management of CLSA and other relevant
entities, supervises and manages the activities of the CSI Group, setting and implementing approved strategies
and overseeing day-to-day operations. Additionally, certain businesses may establish committees, such as
the Business Commitment Committee, Capital Commitment Committee, and Quality Control Committee, tomanage Investment Banking operations conducted across various jurisdictions.

Remuneration
CSI’s remuneration policies for Directors and senior executives adopts a total compensation philosophy which
recognizes individual and team contributions and quality performance. The remuneration package includes
base salary, housing rental reimbursement if applicable, discretionary bonuses, and other allowances andbenefits. Discretionary bonuses are given based on a performance-driven basis, linking their remuneration tothe organization’s overall success and impact management efforts.

Due Diligence
The CSI Board and senior management are committed to avoiding or minimizing adverse effects on theeconomy, environment, and people, including potential impacts on human rights, to the greatest extent
possible. We adhere strictly to the Code of Conduct, which guides our business practices in compliance withall relevant laws, regulations, and ethical standards.
When potential negative impacts are identified, the Group will develop corresponding prevention or
mitigation measures. In cases where the Group’s operations have resulted in actual negative consequences,
the Group will spare no effort to remediate the impacts. The Report provides detailed information on theGroup’s impacts on the economy, people, and the environment, as well as the corresponding measures fortheir prevention or mitigation, which are outlined in the sections titled “Value Chain”, “Our People” and “Our
Environmental Performance ”.

Risk Management
Effectively managing the risks inherent in our business is crucial to CSI’s overall success. We prioritize
comprehensive risk management processes as part of our commitment to sound governance and board
oversight. Following our mother organization, CITIC Securities, we have implemented robust mechanisms
and internal controls to monitor, evaluate, and manage various risks associated with its financial, operational,
compliance, legal, and ESG activities. Through business guidance, operational support, and decision-making
management, the CSI Group implements vertical risk management across its subsidiaries.
At CSI, an overarching risk management system is in place, featuring collective decision by the Risk
Management Committee under the Board, the professional committees under the Operation Management,
and close cooperation among internal control departments and business departments/business lines, andmanaging the risks through review, decision, execution and supervision.

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CSI Sustainability Report 2022

CORPORATE
GOVERNANCE
Our “three lines of defense” model ensures that staff and management have absolute clarity on their roles
regarding the identification, management and monitoring of risks. Responsibilities of staff vary depending on
their line of defense, as outlined below.
First Line: Front Office supervised by heads of business, business line COOs and responsible officers. As theultimate owners of risk within the organization, they are responsible for designing appropriate mitigating
controls.
Second Line: Risk and Compliance. Supports the first line by way of monitoring and oversight of risk andcontrol effectiveness.
Third Line: Internal Audit. Provides independent assurance to senior management and the Board over theeffectiveness of the first and second lines.

Three lines of defense modelBusiness Departments/Business Lines/Subsidiaries
Head of Administration/
Head of Subsidiaries

Internal Control Officer/
Internal Control Manager

All Business Unit Employees

Internal Control Departments
Risk Management
Department

Legal and ComplianceDepartment

Office of the Board

Internal Audit Department

In 2022, the company focused on developing and revising multiple risk management systems, enhancing thelevel of standardized management. The integration of risk appetite indicators in business operations playeda significant role, with the overall risk appetite indicators aligning with the company’s satisfactory levels,
without exceeding tolerance and major risk limits. Concentration risk management and risk early warning
mechanisms received particular attention, leading to the establishment of systems and events tracking related
to country risk management. As a result, the company’s capabilities to prevent and respond to risks have been
consistently strengthened.

Our Risk Management Framework
CSI’s Risk Management department is an integral component of our corporate governance frameworktasked with identifying, supervising, managing, and regulating several types of risks, including Market Risk,
Credit Risk, Operational Risk, Enterprise Risk, and Technology Risk, as specified below. The head of each22

CSI Sustainability Report 2022

CORPORATE
GOVERNANCE
risk management team are accountable for monitoring the risk and reporting to the Chief Risk Officer.
Additionally, regional Risk Officers cover different time zones and address various risks in CSI’s global offices,
following our risk management framework.
Type of risks

Management

Operational Risk

Assesses the impact to CSI’s bottom line and/or our ability to continue
operating part or all of our businesses due to a compromise of internal
processes (e.g. IT systems failure, fraud, operational workflow failures) orfrom external forces (such as power outages, flooding, earthquakes, etc.).
Operational Risk Management also reviews risks to the business that include
Legal and Regulatory Risk, Business Process Risk, Financial Crime Risk, People
Risk, Change Risk, and Governance Risk.

Credit Risk

Assesses the impact on CSI’s bottom line due to a failure of a client or
counterparty to pay what is owed to CSI. Credit Risk team is responsible for
performing credit analysis over counterparties, assigning internal ratings,
setting credit terms, establishing credit limits, monitoring credit exposure andperforming periodic limit reviews.

Market Risk

Assesses the impact on CSI’s business of market-driven events such as equity
market fluctuations, foreign exchange, interest rates and political instability.
Market Risk Management is responsible for establishing limits, measuring,monitoring, and reporting market risk exposure.

Enterprise Risk

Assesses the impact on CSI’s business by capturing major risks that could
prevent the firm from achieving its goals. Enterprise Risk works towards
establishing a framework that employs a comprehensive, integrated approach
to risk management. It is designed to enable processes through which we
identify, assess, monitor and manage the risks we assume in conducting all our
activities.

Technology Risk

Assesses the impact on CSI’s technology infrastructure from malicious orerroneous actions that may cause infiltration of viruses, loss of confidential
information and intellectual property, destruction or corruption of data orsystem failures. Managing technology risk involves reviewing change releases,
following up on mitigation measures for data leakage or system failure,monitoring control reports and issue escalation.

Managing Systemic Risk
Understanding how managing systemic risk is crucial to our business, we take a proactive approach to manage
and mitigate systemic risk by implementing various strategies and practices. One of the key approaches isdiversification. We diversify our strategy by operating in a wide range of business models and business lines
with integrated management and coordinated synergy. Additionally, we diversify our investments acrossdifferent asset classes, industries, and geographical locations to reduce the impact of a downturn in any one
area. We also have proper concentration limits in place to mitigate counterparty credit risk and legal entity
diversification with proper segregation between different regulated entities to avoid contagion risk.
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CORPORATE
GOVERNANCE
In addition to diversification, we have sound practices in risk management and conduct regular prudent
risk assessments. This helps us to identify, monitor, and manage various types of risks, including credit risk,
market risk, operational risk, and liquidity risk. We also conduct stress tests to evaluate our group’s capital andliquidity to withstand extreme market conditions, which helps us to identify potential weaknesses and takecorrective actions. Furthermore, we have developed business continuity plans and liquidity contingency plansthat outline the steps to be taken in the event of a major market disruption or other crisis situation. Overall,these approaches help us to manage and mitigate systemic risk and maintain the stability and resilience of ourbusiness.

Risk in Incentive Compensation Plans
As a financial service provider, we recognize the employee compensation plans may incentivize employees
to focus on short-term entity performance, causing behaviors or activities that may lead to unintended
consequences. It may harm our business and shareholders and damage our reputation. To address thisrisk, we have implemented clawback provisions for discretionary bonus payments as a mitigation measure.
Additionally, we have established consequence management procedures that adjust the performance ratingsof employees who engage in disciplinary actions or misconduct that result in non-compliance with company
rules and regulations during the performance appraisal process. As a result of the adjusted performance
ratings, we may discount or downward adjust the bonus allocation to such employees as a sanction. These
measures help ensure that our incentive compensation plans are used to motivate positive performance, while
also promoting ethical behavior and mitigating potential risks.

Business Ethics
At CSI, we uphold the highest standards for our employees and operations to ensure the sustainability of ourbusiness, our impact in the market, our responsibility to stakeholders, and our strong brand and reputation.
This ethical management approach is fundamental to our philosophy across all aspects of our business, such as
day-to-day management, compliance, and corporate governance.

Code of Conduct
The CSI Code of Conduct encompasses all aspects our business interactions with clients, including intellectual
property, appropriate use of assets, electronic communications, human and labour rights policies andprocedures, confidentiality of information, conflicts of interest, media policy and social media guidelines.
Consistent and uniform application of this document empowers our employees to deliver exemplary service
and value to our clients and to support their colleagues and the communities in which we operate.
The Code of Conduct outlines how our employees should approach ethical decision making and what thebusiness expects in terms of honesty, integrity, professionalism, diversity, non-discrimination and equal
opportunities. It covers all business dealings with clients, including human and labour rights policies andprocedures, appropriate use of assets, intellectual property, confidentiality of information, conflicts ofinterest, electronic communications, media policy and social media guidelines. It also provides guidelines forhealth and safety, freedom of association, community involvement and outlines roles and responsibilities ofmanagers and employees.

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GOVERNANCE
Violations of the CSI Code of Conduct are dealt with by CSI’s Disciplinary Committee and treated with theutmost seriousness and confidentiality. CSI takes compliance and conduct risk breaches seriously. CSI’s
Legal and Compliance department has tracked employees engaged in misconduct and assigned “Conduct
Risk Breaches” for those issues that fall within the scope of the Conduct Risk Policy. And the Conduct Risk
Policy includes measures of conduct risk breaches, which also have implications to the staff and departmental
performance assessment. Conduct Risk breaches will be taken into account as part of the year-end appraisal
and impact each employees’ KPI assessment.

Whistleblowing
CSI fosters a culture of confidence in which employees feel empowered to immediately report any suspected
wrongdoing with the knowledge that their concerns will be kept confidential, taken seriously and investigatedswiftly and appropriately. To ensure this, we have a dedicated email address and telephone hotline forwhistleblowing when unethical or illegal behavior within the CSI Group or about their clients is suspected.
This system protects staff from retaliation when making a report in good faith.
Local laws and regulations in the jurisdictions in which we operate may also impose specific mandatory
whistleblowing obligations on staff in relation to matters such as terrorist financing or money laundering.
Where legal or regulatory requirements impose higher standards than the requirements of ourWhistleblowing Policy, the legal and regulatory requirements prevail. As of 2022, there were 0 reported
whistleblowing cases that required any action to be taken.
We have established grievance procedures as outlined in our Employee Handbook to address employee
grievances, including those related to discrimination and harassment. We take all complaints seriously
and respond immediately to investigate and resolve issues in accordance with our Grievance procedures.
Employees may report complaints to their supervisor, Department Head, or the Human Resources
Department in writing. HR team investigates complaints promptly, which may involve interviewing involved
parties such as the supervisor, Department Head, and/or Human Resources Department. Upon completion of
the investigation within a reasonable timeframe, we discuss the outcomes internally and may take appropriate
action, such as disciplinary measures. We strive to conduct objective investigations based on the information
provided and take necessary measures accordingly. In 2022, 0 grievance cases were reported to the CSIGroup.

Internal Controls
CSI has embedded organization-wide internal controls to maintain a culture of ethical business practice andtransparency. These include but are not limited to incident escalation, anti-money laundering and knowyour-customer (“KYC”) policies; gift and benefit declarations, anti-bribery and corruption declarations; aswell as data-protection, IT security and systems that protect clients, staff and the business. Our Complianceand Internal Audit plays a vital role in ensuring regular checks on business practices and procedures are
conducted. All employees must also declare outside interests and any directorships they hold on listed or nonlisted companies, including not-for-profit organizations.

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CORPORATE
GOVERNANCE
CSI’s Compliance and Internal Audit play a vital role in ensuring regular checks on business practices andprocedures are conducted, including through internal controls designed to manage conflicts of interest
that may arise as a result of CSI engaging in corporate finance, sales and trading and research activities.
Controls include information barriers and other information controls designed to ensure that confidential
information is only shared on a “need to know” basis and in compliance with our Chinese Wall policies andprocedures. These measures are designed to ensure that interactions that may occur among CSI’s research,
corporate finance and sales and trading personnel, our financial product issuers and research analysts do notcompromise the integrity and independence of CSI’s research.
In 2022, the CSI Group did not have any cases of non-compliance with laws and/or regulations in the social,economic or environmental areas and no political donations, financial or in-kind, were made during this period.

Anti-bribery and Corruption
The CSI Group is committed to managing all businesses without undue influence and upholds the values ofintegrity and honesty. All employees, business partners and members of governance bodies are required tofollow the internal Anti-Bribery and Corruption Policy and Gift and Entertainment Policy which outlined ourapproach to identifying and dealing with any suspected cases of bribery and corruption.
The Anti-Bribery and Corruption Committee is accountable for supervising issues concerning bribery andcorruption. We conduct a bi-annual assessment of bribery and corruption risk. In 2022, the CSI Group
conducted anti-bribery and corruption risk assessment among all operating country offices and businessgroups. No significant corruption risks were identified during the risk assessment.
We make it compulsory for all of our employees to undergo training on preventing bribery and corruption. Last
year, in 2022, a total of 2,450 staff members received this training. Furthermore, we provided an extra hourof anti-bribery and corruption training from ICAC to 250 selected staff members working in various businessareas including front, middle, and back offices. Additionally, we have incorporated anti-bribery and anti-money
laundering clauses in our contracts, risk disclosures, and agreements with all external parties such as suppliers,
agents, intermediaries, and customers to comply with all relevant laws.
In 2022, no confirmed incident of corruption nor any public legal cases regarding corruption brought against
the CSI Group or our employees were reported. There were no instances where employees were terminatedor disciplined for involvement in corrupt activities, and no contracts with business partners were terminatedor not renewed due to violations related to corruption.

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SECTION 4

EXCELLENCE IN
INVESTMENTSERVICES– Sustainable Finance– ESG Insights– ESG Investment– Integrating Climate Risk in Investments

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EXCELLENCE IN
INVESTMENT SERVICES
Sustainable Finance
The CSI Group has been a leader in the field of green and sustainability bonds. In 2022, we underwrote 49
overseas green and ESG bonds in debt financing. 38 of the bonds are denominated in USD, with a total value of
USD 15.9 billion; 8 are in RMB, totaling RMB12 billion; 2 are in HKD, with a total value of HKD 4 billion; and 1
is in Euros, with a value of 500 million euros.
In addition, our investment banking has successfully assisted 5 new energy companies in listing on the London
Stock Exchange and Swiss Stock Exchange through interconnection, issuing GDRs with raising a total of
approximately USD 3.35 billion. We also participated in the JL Mag Rare-Earth Co Ltd USD 544 million HK
IPO and Citicore Energy REIT Corporation 6.40 billion pesos IPO. As a responsible corporate, we fully support
the development of sustainable finance and investment, utilizing our expertise to provide the best products
and services to our clients.

ESG Insights
CSI’s research team has established a strong reputation for offering global investors with unique insights
into the companies, issues and themes driving global growth. Recognizing the growing importance of ESG
in the market, we are one of the first investment bank research houses to incorporate ESG output as part ofresearch analysts’ performance evaluation, with two dedicated salespersons. Over the past two years, wehave observed a notable increase in the production of unique ESG research reports and presentations, withthe count rising from 150 in 2021 to 290 in 2022.
Our team provides a comprehensive range of sustainability research products that cover a wide spectrumof ESG factors. We have been at the forefront of researching material sustainability factors, including
governance, environmental impact, and social issues, particularly in the Asian market. We remain committed
to providing ESG research that addresses the diverse ESG investment requirements of our institutional clients.
Our research products encompass various areas and cater to different needs. We offer thematic research,which delves into specific sustainability themes and trends. Our bottom-up stock-specific analysis provides
in-depth insights into individual companies and their ESG practices. Furthermore, our analysts collaborate
with experts in the environmental and energy sectors. Together, they organize webinars and produced reports
covering a wide range of climate-related subjects, such as energy transition and carbon trading.
Our clients can access to our research products through our dedicated research portal. More than 100
research analysts have contributed to the portal, covering 18 key industry sectors across 14 markets andproviding deep sector and company insights.

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EXCELLENCE IN
INVESTMENT SERVICES

Comprehensive ESG research: driving sustainablechange in China and Asia
Our ESG research has been widely acknowledged and respected within theindustry. In 2022, we released the report “Sustainable China: Riding thegreat carbon abatement,” which provides a comprehensive analysis of China’s
progress toward its net-zero target of 2060, taking into account diverse
stakeholder perspectives. The report concludes by highlighting 20 long-term
beneficiaries in Asia, emphasizing the potential positive impact.
In addition to being the most widely read research report among all of CLSA’s
research in 2022, the report has also received commendations from clients
who appreciate its timeliness and the comprehensive analysis it offers ofChina’s Net Zero pathway.
In 2022, we also published an in-depth report addressing gig-worker welfare
in Asia. This report analyzes and compares the welfare provided to temporary
workers by relevant companies in the region. The report has gained recognition
among stewardship-focused investors to engage with companies, thereby
accelerating positive changes in society.
This research has also helped Fidelity International to select Gig Worker
Welfare as one of their core theme of Sustainable Investing in China.

ESG Scoring Data
Since 2001, CSI has developed its own proprietary ESG scoring framework for listed companies. Our analysts
are required to provide their own judgment and commentary on approximately 35 ESG questions for eachcompany they cover. Factors influencing the ESG score are reviewed in collaboration with ACGA. Our biennial
CG Watch report, which assesses the state of corporate governance in Asia and the adherence to goodpractices by Asian listed companies, has become a benchmark in the industry.
Within our proprietary ESG scoring, we also incorporate sector-specific environmental questions. We
actively seek analyst input to evaluate companies’ efforts in managing environmental risks and opportunities.
Additionally, this process helps us identify key issues that warrant further engagement.

Live Online Research Platform
CSI is proud to be the first investment bank with a live online research platform dedicated to Asia ESG. This
platform serves as a comprehensive resource for ESG news and research, providing a one-stop destination
for investors seeking up-to-date information. It features an ESG score database categorized by sectors andmarkets, enabling investors to assign different weightings to ESG factors. Additionally, the platform offers
daily news updates from Asia, as well as weekly analysts’ comments on management changes and ESG fundflow trends.

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EXCELLENCE IN
INVESTMENT SERVICES
ESG Investment
CLSA Capital Partners
At CSI, we recognize the importance of responsible investment. Our alternative investment managementbusinesses, CLSA Capital Partners (“CLSA CP”), is dedicated to thoroughly considering ESG issues in
its portfolio company investments. CLSA CP voluntarily signed up for the United Nations’ Principles of
Responsible Investing (“UN PRI”), which demonstrates its commitment to including ESG factors in investment
decision making and ownership. As a signatory, CLSA CP completes an annual Transparency Report, which isavailable here.
CLSA CP also follows guidelines developed by the US Private Equity Growth Capital Council (“PEGCC”) anddeveloped our own internal set of Responsible Investing Guidelines based on UN PRI and PEGCC. These
guidelines were first compiled in 2012 and are regularly reviewed and updated as appropriate to ensure theyreflect the latest developments in the ESG space. CLSA CP also endorses the Private Equity Principles of
the Institutional Limited Partners Association (“ILPA”), which aims to improve the private equity industry bystrengthening the alignment of interests between general partners and limited partners, fund governance, andtransparency and reporting.
In addition, CLSA CP discloses climate-related risk management measures in compliance with the regulatory
framework of the Securities and Futures Commission of Hong Kong (“SFC”). We believe that responsible
investment is not only ethical but also a smart business strategy that can generate positive returns andcontribute to a more sustainable and equitable world.

“CLSA CP leads the way in integrating ESG into investment management. ESG isa must when making investment decisions. For instance, we invested in Shenke
Bio (“SK”), a biotechnology company which provides analytical products andsolutions (Host Cell DNA and Host Cell Protein impurity detection) to thebiopharmaceutical industry for use in process development and quality control
in China. Playing a key role in promoting the improvement of China’s official QC
standards on impurity detection, SK serves a widespread clientele of around
500 biopharmaceuticals and CRO/CDMOs, and makes positive contribution to
China’s biopharma industry. In 1H2023, SK has filed for China A-share STAR
Board IPO application, and is currently undergoing the first round of enquiries
from the stock exchange. This proves that the integration of ESG goes hand-inhand with gaining market recognition and boosting investment performance.”
Mr. Tom Zhang, Associate, CLSA Capital Partners

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INVESTMENT SERVICES
Our Responsible Investment Process
We believe excellent ESG performance is the key to a successful investment. As such, we closely monitor ESGrelated issues through a two-tier responsible investment process to ensure ESG risks and opportunities arereported to, considered and documented by CLSA CP funds and their respective Investment Committee (“IC”).
Investment Stage

Responsible Investment Process

Pre-investment• ESG management and performance is taken into consideration when CLSA
CP reviews potential investments to assess their viability and can be areason for not investing in a particular company.
• Investment deal teams conduct thorough due diligence into all ESG aspectsof a potential portfolio company’s operations and performance.
• Detailed submissions to the IC include material ESG findings arising fromdue diligence for review and details regarding decision making on how toproceed.

Post-investment

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• Funds engage in detailed monitoring of portfolio holdings, including
following up on issues identified during the pre-investment stage andthose that may arise after the investment has been made.
• Quarterly reporting to IC includes commentary on material issues relating
to each portfolio holding, such as ESG risk management and performance,
as well as ESG-related opportunities for value creation.

EXCELLENCE IN
INVESTMENT SERVICES

Case study

CSI’s Value-add focused Real Estate Funds
CSI’s value-add focused Real Estate Funds deliver strong returns to investors
through active asset management by creating value in a socially andenvironmentally responsible manner.
Before acquisition, all real estate assets go through meticulous environment
site assessments, as well as tenant surveys. The comprehensive environment
site assessment 2-stage technical due diligence process involves a preliminary
inspection to identify any potential issues, followed up by a detailed inspection
includes the identification of any present or historic pollution that may
require remediation. Any issues identified are carefully mitigated by measures
including site and soil clean-up of pollutants such as hydrocarbons or PCBs;
equipment containing harmful ozone-depleting chlorofluorocarbons orsynthetic GHGs such as R22 refrigerants are replaced by alternatives withrelatively lower Global Warming Potential (“GWP”); or potential healthhazards like asbestos embedded in elevator brake pads or building insulation
are carefully removed and replaced to improve the overall health and safetyof the built environment. Our tenant surveys are carried out to understandthe needs of occupants and assess impacts on the surrounding environment,
including pedestrian traffic around assets.
The energy efficiency of acquired assets is independently rated using
external third-party assessment bodies in each asset’s jurisdictions, such as
Australia’s NABERS or Singapore’s GreenMark, with the aim of attaining peak
performance whilst minimising CAPEX intensive works and waste.

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INVESTMENT SERVICES
In addition to integrating ESG considerations into our investment process, we aim to create positive ESG value
through responsible investing. We strongly believe in the potential benefits that thorough ESG consideration
can bring to investors, society, and the environment. Our commitment to responsible investment is reflectedin our various funds that leverage the ESG performance of our portfolio companies.

Case study

CLSA China Growth FundOur flagship China-market USD Private Equity Fund focuses on industries
with the potential of rapid growth in China, including new energy, healthcare,technology, and TMT (technology, media, and telecom), with a core objectiveof advancing environmental protection and medical care in public healthsystems.
In 2022, we made a significant investment in Ace Battery (“Ace”), a leading
provider of top-tier energy storage solutions and battery management systems
to global new energy companies, including prominent players like Schneider,
Siemens, Enphase, and Vertiv. As the sole lead investor, we participated in thelatest round of equity financing for Ace. Their products find wide applicationin diverse areas, such as UPS, residential and commercial/industrial energy
storage systems, as well as power batteries for specialized vehicles andconstruction trucks.
Ace Battery has made a positive market impact and garnered wide recognition
within the industry. They were selected as the ‘Venture 50 in Carbon
Neutrality’ by PE Daily and Zero2IPO, esteemed alternative investment market
intelligence companies in China. Additionally, Ace was included in the ‘2023
China Future Unicorn Top100’ list by the China Investment Promotion Agency
and Welian.com. Ace secured its place among the top 10 awardees in the
Renewable Energy category.
Through our meaningful investment in Ace Battery, we have demonstrated
our commitment to creating positive social and environmental impact while
seeking attractive financial returns.

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EXCELLENCE IN
INVESTMENT SERVICES
Integrating Climate Risk in Investments
Incorporating ESG principles into our products and services is a key focus for the CSI Group. Our asset
management business, CLSA Asset Management Limited (“CLSAAM”), actively considers climate risk in its
investment strategy and decision-making process. The Investment Committee of CLSAAM is responsible formanaging investments and ensuring the firm-wide implementation of climate risk management. CLSAAM has
established a series of practice manuals that have been approved by the investment committee. These manuals
serve as a framework for identifying, pricing, and managing climate-related risks and other ESG-related risks.
Furthermore, the Investment Committee provides regular reports to the Directors on the progress of climaterelated risk management, including quarterly updates on the investments and annual reports on internal
developments and progress towards climate goals.
CLSAAM follows a four-step approach to integrate climate considerations into its investment and risk
management processes, as outlined in the SFC Climate Risk Disclosure. This disclosure applies to all actively
managed CIS funds and provides detailed information about climate-related processes and procedures.

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SECTION 5

VALUE CHAIN– Customer Satisfaction and Responsibility– Customer Privacy– Information Security– Intellectual Property Rights– Supply Chain Management

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VALUE CHAIN
Customer Satisfaction and Responsibility
Our clients entrust us with their investments, and we take this responsibility seriously. We are dedicated toproviding exceptional service, maintaining transparency in our operations, and upholding the highest ethicalstandards in all our dealings. We believe that by doing so, we are not only fulfilling our fiduciary duty to ourclients, but also promoting the well-being of our customers in terms of their health and safety. We actively
monitor risks in our business and investments, thereby providing trustable and reliable services and products
to our customers. For details, please refer to section “Risk Management And Integrating Climate Risk in
Investment ” of this Report.
In addition to risk management, we believe that making ethical and responsible investment can have also apositive impact our customers’ overall well-being. We strive to safeguard our customers’ financial interests,
prevent fraudulent activities, and promote their financial well-being by continuously enhancing customer
protection. Furthermore, we have in place a robust system to protect customer personal data and information.
These factors indirectly contribute to our customers’ overall health and safety. Further information regarding
customer data privacy can be found in section “Customer Privacy and Information Security ” of this Report.

Customer Privacy
Safeguarding the privacy of our customers’ personal information and other data is of utmost importance as it
upholds our reputation for strong governance and reinforces trust in our enduring business relationships. To
ensure this, we have implemented a Personal Data Protection Policy that outlines the fundamental principles
governing the collection, handling, storage, disclosure, and processing of personal data. In addition, we
strictly comply with applicable local laws, rules, and regulations in each jurisdiction where we operate, suchas the Personal Data (Privacy) Ordinance (Chapter 486) in Hong Kong (“PDPO”), the Personal Information
Protection Law (“PIPL”) in the PRC, the General Data Protection Regulation (“GDPR”) in Europe, and otherrelevant personal data protection laws. This policy extends to all individuals affiliated with CLSA, including
all employees, consultants, and authorized third parties who have access to any personal data held by or on
behalf of CLSA, regardless of their employment status or contract duration. Our customers can access ourPrivacy Policy Statement at both CITICS and CLSA website.
The Legal and Compliance Department (“LCD”) assumes several key responsibilities in personal dataprotection within CLSA. The LCD is responsible for reviewing all personal data protection policies, reviewing
contracts with data processors, and coordinating departments that collect/process personal data to handle
individual requests (Subject Access Requests). On the other hand, the Information Technology Department
is responsible for defining security policies, recommending and evaluating security designs, implementing IT
measures to safeguard personal data, and assessing third-party services that CLSA may consider using fordata storage or processing upon request.
The CSI Group recognizes the potential consequences associated with data breaches. Our Personal Data
Protection Policy includes a comprehensive outline of guidelines and response plans to effectively manage
such incidents. The policy details the necessary steps to address and handle data breaches in a systematic andresponsible manner. In 2022, there was no loss of customer data and privacy identified or non-compliancewith laws and regulations that have a significant impact on the Group in relation to customer data protection
and privacy recorded during the Reporting Period. No substantiated complaints concerning breaches ofcustomer privacy was received during the Reporting Period.
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VALUE CHAIN
Information Security
CSI has established an Information Protection Policy which outlined our standards to protect sensitive data
during business operations from cyber threats, unauthorized access, improper storage, transmission, anddisposal. This policy applies to all CSI information assets, resources, and users, including contractors andsuppliers who require access to CSI information resources for legitimate reasons. Any violation of this policy
will result in serious consequences, including limiting the use of information resources, disciplinary action,
termination of employment, or legal action. In 2022, there were no reported breaches of CSI’s Information
Protection Policy.
All employees are responsible for ensuring the confidentiality and integrity of CSI information resources, andthey must not disclose or modify any data without proper authorization. The roles and responsibilities of CSI
employees in maintaining information security are further outlined below.

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Roles

Responsibilities

IT security• Developing and maintaining security policies, standards and procedures forprotecting company-sensitive information• Performing risk assessment on threats associated with sensitive data andrecommending security controls.

Information User

• Not accessing data that they are not authorised to or for which they do nothave a legitimate business need-to-know• Protecting company-sensitive information by not disclosing tounauthorised parties.
• Immediately reporting any data breach or violation of this policy to
Information Owner and IT Security.

Manager/Supervisor• Ensuring that their staff understand and comply with the Information
Protection Policy.

Information Owner• Ensuring the confidentiality, integrity and availability of the data they own.
• Ensuring appropriate controls are implemented consistent with the dataclassification and in compliance with this policy.
• Ensuring their data is retained and disposed according to legal andcompliance requirements.
• Immediately reporting any data breach or violation of this policy to IT
Security.

Information Custodian• Assisting information owners with implementing prescribed security
controls in compliance with internal policies.
• Immediately reporting any data breach or violation of this policy to
Information Owner and IT Security.

Legal and Compliance• Providing guidance on group record retention requirements.
• Perform data leakage protection monitoring.

CSI Sustainability Report 2022

VALUE CHAIN
Intellectual Property Rights
The CSI Group prioritizes effective management of intellectual property (“IP”) rights. We have in place the
Copyright Management Policy which outlines the management and protection of IP rights. This policy applies
to all employees and directors. Non-compliance or infringement may result in criminal and civil liabilities forindividuals and the CSI Group as a whole. In addition to this policy, our employees are required to refer to the
CSI Employee Handbook, Confidentiality Policy, and other internal communications and guidelines.
We strictly adhere to the local laws, rules, and regulations applicable to its operations in each jurisdiction. The
LCD is responsible for the overall management of copyright at CSI Group, which includes the development,
revision, and enhancement of a comprehensive copyright management system at CSI Group. The day-to-day
management of works and copyright lies with the department that creates the respective work (Originating
Department). LCD also coordinates and provides guidance to relevant departments on copyright management
and protection, resolves copyright disputes, and performs other related tasks. Other relevant departments,
such as Corporate Communications, are expected to assist and collaborate with LCD and the Originating
Department in copyright management.

Supply Chain Management
CSI is committed to managing its supply chain sustainably and has implemented several measures to reduce its
environmental impact. As part of the CLSA Environmental Management System, the company has established
an Environmental Policy that mandates compliance with the relevant laws and regulations in the jurisdictions
in which the company operates. In addition, the company is working towards integrating sustainableprocurement practices into its operations.
Some of the key initiatives undertaken by CSI to manage its supply chain sustainably include:
Green purchasing practices: The company has implemented environmental protection guidelines for ISO
documents, which mandate the purchase and use of recycled/recyclable paper products as the first preference,
wherever applicable and practical.
Supplier engagement: As part of ISO14001 requirement, CSI is working towards asking all its suppliers tocomplete an annual questionnaire to assess their environmental activities. The company advises its suppliersof its Environmental Management System in place along with its Environmental Policy and ascertains if they
have an established Environmental Management System (EMS), if they are ISO certified, if they recycle theirwaste products, and if they document evidence of their environmental controls.
Prioritizing green product procurement: Our global offices are working to implement and track the adoptionof sustainable design features, including both the incorporation of energy-efficient lighting and equipment,
and the procurement of renovation materials and fittings with sustainable attributes in building and officedesign.
CSI is committed to continue strengthening our sustainable procurement policy and working with our
suppliers to reduce the environmental impact.
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SECTION 6

OUR PEOPLE– Caring for Our Employees– Diversity, Inclusion, and non-discrimination– Employee Development and Training– Health, Safety, and Wellbeing

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OUR PEOPLE
Caring for Our Employees
At CSI, employees are our most valuable assets. We recognize the importance of providing them with asupportive and inclusive work environment where they can grow and develop their careers.
We are committed to providing comprehensive employee benefits to all our employees, including both
permanent and temporary staff. These benefits include but are not limited to leave benefits, healthcare, lifeand personal accidental death and disablement plans, parental leave, and retirement benefits. While thespecifics of these benefits may vary across locations, detailed information can be found in the local Employee
Handbooks. We believe that providing our employees with robust benefits is an important aspect of creating a
supportive and inclusive work environment, which enables them to thrive both personally and professionally.
We believe that offering competitive compensation and benefits is essential in establishing a sustainable
workforce that deliver continuous value creation for our clients. Our salaries are benchmarked against
industry standards, and we evaluate our employees’ performance against key performance indicators to
support our overall organizational goals. Our Performance Management System is used company-wide toassess both technical and behavioral capabilities of all employees on at least an annual basis. This systemallows us to determine those who are excelling and those whose performance has fallen below expectations.
In addition, our internal Remuneration Policy adopts a total compensation reward approach, which includes
discretionary bonuses based on individual performance ratings in the performance appraisal process.
Employees are evaluated against the key performance indicators set for their role and the core competencies
that align with our company values and principles.
Our responsibility to oversee the working conditions and minimum age of our employees is of paramountimportance. We ensure that all our employees are above legal age limits, and all work is performed voluntarily.
Our managers and employees are bound by the standards and policies outlined in the CSI Code of Conduct
and Employee Handbook.

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OUR PEOPLE
As of 31 December 2022, we had a total number of 2,130 employees (2021: 1,970 employees). Most of ourworkforce were full-time employees. However, we also had part-time employees in Australia and Japan, with
one each, and our Hong Kong office employed 13 part-time employees. The total workforce by gender, agegroup, employee grade, and employment type are shown below.

14%
24%

38%
62%

GenderDistribution

Age Group
Distribution

62%

Male

FemaleBelow 30

0.3%

30-50

Above 509%23.0%

Employee Grade
Distribution

Employment Type
Distribution

91%

76.7%

Frontline andother staff

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CSI Sustainability Report 2022

Middlemanagement

Seniormanagement

Permanent

TemporaryOUR PEOPLE
The geographic locations of our workforce
MAINLAND CHINA
0.42%

HONG KONG. CHINA
53.57%

SOUTH KOREA
2.39%
JAPAN
3.62%

UK
3.62%

INDIA
16.48%USA
2.63%

THAILAND
1.31%

AUSTRALIA
3.05%

THE NETHERLANDS
0.38%
MALAYSIA
1.27%
SINGAPORE
7.42%

THE PHILIPPINES
1.54%
INDONESIA
2.3%

Human Rights

PAKISTAN** 2018

As a financial services provider, we are committed to upholding the highest ethical and professional standards,
which includes a zero-tolerance policy towards modern slavery and human trafficking. We support theprotection and advancement of human rights in our business and supply chains and have implemented
various policies and practices to ensure that modern slavery does not take place in our operations. The CSIGroup respects the rights set out in the UN International Bill of Human Rights and the principles concerning
fundamental rights set out in the International Labour Organization (“ILO”) Declaration on Fundamental
Principles and Rights at Work.
Along our employment and our value chain, the CSI Group respects:
•
•
•
•
•
42

Rights not to be subjected to slavery, servitude or forced labour;
Rights to freedom of thought, conscience and religion;
Rights to enjoy diverse and inclusive working environment;
Rights to safe and healthy workplace, and;Rights to Health.

CSI Sustainability Report 2022

OUR PEOPLE
Our human resources policies and practices are in compliance with local laws and uphold human rights.
Further details regarding our measures to prevent modern slavery can be found in our Modern Slavery Act
Statement, which is available at https://www.clsa.com/about/governance.

Recruitment, Retention and Promotion
CSI’s policies and practices regarding compensation, dismissal, recruitment, and promotion are clearly outlinedin the Employment handbook, while every employee receive their employment contract that stipulates theterms of employment, wages, benefits, and termination clauses. All our employees are required to complete ahuman resources policy declaration annually to confirm their understanding of the provisions in the Code of
Conduct and Employee Handbook. Additionally, employees undergo refresher training of mandatory courses
to refresh their understanding of policies and standards.
At CSI, our commitment to hiring the best candidate for the job, without exception, is a core principle that weuphold. Our Human Resources Department efficiently and fairly manages recruitment processes, working
closely with business and hiring managers to identify and secure exceptional talent. With a presence in 14
locations, we maintain our corporate competitiveness in attracting and retaining talent while also committing
to creating a positive market presence. More than 90% of our employees are hired from the local community.
Retaining and developing our talent is essential to the ongoing success of our business. At CSI, we prioritize
nurturing and promoting staff internally before considering external candidates. All job openings are listed
on our Job Opportunities@CLSA intranet page, which is available to all employees, as part of our candidate
sourcing strategy. We recognize and reward individual outstanding performance by promoting high-potential
staff, providing career advancement opportunities, and promoting a culture of high performance throughout
the organization.
Our Performance Management Exercise allows employees to provide performance feedback and any
development plans for performance review and career development.

CLSA Internship Program
We take pride in providing an environment where young talent can thrive,
and we focus on cultivating outstanding future leaders. Our Internship
Program is the first step in our talent identification process, allowing final- andpenultimate-year university students to gain valuable experience within CSI
and build a career in the financial services industry.

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OUR PEOPLE
Diversity, Inclusion, and Non-discrimination
CSI is committed to building a diverse and inclusive workplace by providing equal employment opportunities
at every level of our business. We strictly comply with all equal opportunity and anti-discrimination legal
responsibilities in all jurisdictions where we operate, ensuring that our employment practices meet legal
requirements and the highest ethical standards.
Throughout the recruitment process, we demonstrate our commitment to equal opportunities for all
applicants for employment. We have Equal Opportunity and Anti-Discrimination Policy in place to ensure
no discrimination on the basis of gender, gender identity, age, marital status, family responsibilities or
pregnancy, religion, political convictions, non-relevant criminal record, sexuality, sexual orientation, carer’s
responsibilities, national or ethnic origin, trade-union status, disability or physical appearance. Our Employee
Handbook has included our Equal Opportunity Policy to ensure that all of our employees enjoy an equal,
inclusive working environment. Additionally, our Code of Conduct includes an Equal Opportunity Statement,
outlining our commitment to ensuring that our employees and job applicants are not subjected to any unlawful
discrimination, harassment, or victimization based on any grounds.
During the Reporting Period, no incidents regarding discrimination were recorded.

Employee Development and Training
We firmly believe that providing consistent learning opportunities for our employees is a critical factor inachieving success in our business. As such, the Learning and Development (“L&D”) function is an essentialfunction of our Human Resources team and a focus of CSI as we work towards an active learning culture
within our organization.
We recognize that our people are the key to our success, and we are dedicated to providing a wide range
of internal and external training and development opportunities to employees at all levels, without regard
to gender, age, employment contract type, or job category. Our Learning & Development Team in Human
Resources Department work with the business units/functions to analyze the skill gaps and training needs forformulation of tailor-made training programs for the business.
Our L&D catalogue focuses on three key areas: personal effectiveness, technical effectiveness andmanagement skills. We encourage and empower our people to shape and drive their own career progression
and develop their core skill competencies so that they are equipped to take on key roles within theorganization.
Our key program offerings are as follows:1.

44

Firmwide training program – the series of 1-hour webinars covering topics on both technical skills andinterpersonal skills aims to provide opportunities for employees to grow professionally and personally

CSI Sustainability Report 2022

OUR PEOPLE
2.

Management Essentials – a program specifically designed to equip people managers with the principles
and essential skills in managing staff performance from motivating, delegating and managing withcommitment to performance goals

3.

Junior training program – a program designed for junior employees to build their personal effectivenessand grow their technical skills

4.

Departmental training program – provide guidance on designing tailored programs based on
department’s needs, from functional technical skills to team bonding

By delivering various upskilling programs, we aim to grow talent within the firm, increase talent retention,
provide career enrichment and development opportunities for high-potential employees, and facilitate
networking and exposure across the wider CSI business.

Intuition@CLSA
We have collaborated with a financial markets online training provider to develop Intuition@CLSA,
an online training portal aimed at enhancing the knowledge and skills of all our employees. The portal
provides trainings on a comprehensive range of topics which covers technical expertise, management
effectiveness, and personal development, as aligned with CSI’s three pillars of effective learning.
Intuition@CLSA is a valuable tool offering detailed and diversified content to support the continuous
learning and development of our employees. The portal is accessible via the Human Resources homepage
on the staff intranet.

Mandatory Online Training
To ensure that we comply with laws and regulations in all of our locations, we provide training through oure-learning portal. These mandatory, bespoke programs are developed in house and cover the following:
Global Financial Crime

IT Security

Operational Risk

Sexual Harassment – Recognise, Respond,
Respect

Anti-Bribery and Corruption
CLSA SFC Best Execution
Conflicts of Interest

Diversity and Inclusion Training
Delivered to all employees of CSI, our in-house Diversity & Inclusion Training program is part of our mandatory
suite of courses for all new joiners. As inclusion is one of the five guiding principles in our Code of Conduct, thetraining is designed to emphasize the advantages of diversity and inclusion in business, effective managementof diversity, and the application of best practices in this area.

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OUR PEOPLE
The diversity and inclusion training covers a wide range of topics to promote a more inclusive and equitableworkplace, including but not limited to:••••

Leveraging Cultural Diversity
Beyond IWD: Building a More Equitable Workplace
Women and the Future of Work
Empowering Women in Leadership

The training aims to enhance participants’ skills and knowledge in these areas, fostering a diverse and inclusive
work environment where all employees can thrive and contribute their best.

“We are fully aware of the company’s diversity and inclusion manual, and we receive regular training on
it. In our hiring process, we prioritize quality and actively aim to improve the gender ratio in the company,
provided there are suitable candidates available.

With the prevailing social issue in Japan, where working mothers require support from childcare
facilities, our investment in these facilities becomes imperative. By investing in childcare facilities, wecreate valuable opportunities for working mothers to pursue their careers while ensuring the well-being
and care of their children.”
Mr. Shota Kuwaki, Executive Director, CLSA Capital Partners

Development programs
In 2022, 100% of our employees received training. A total of 32,043 training hours were provided, averaging
at 15.04 training hours per employee. The following graphs demonstrate a detailed breakdown of the training
hours across different categories.

Average training hours
by gender

Average training hours
by employee grade
19.06

15.35

Male

14.53

Female

14.84

Frontline & other staﬀ
Senior Management

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CSI Sustainability Report 2022

15.66

Middle Management

OUR PEOPLE
In addition to our internal learning and development program, the Group actively supports employees inpursuing personal growth opportunities, such as training, to enhance efficiency and profitability. The Groupwill assess requests for Learning & Development Reimbursement from permanent employees who meet the
specified criteria. Furthermore, we prioritize the future and well-being of our employees as they approach
their retirement age or the equivalent statutory retirement age, if applicable. To ensure a smooth transition,
the Human Resources Department will proactively reach out to employees within 6 to 12 months before theyreach retirement age to initiate discussions about the next steps. Similarly, employees who are approachingretirement age and wish to retire are encouraged to contact the Human Resources Department to discuss
their plans. We care about our employees’ retirement journey and are here to provide guidance and support
throughout the process.

Health, Safety, and Wellbeing
We are dedicated to providing a secure and healthy workplace, prioritizing the safety, health, and wellbeingof all individuals, including employees, customers, contractors, and visitors. To safeguard our employees’
health and safety, we adhere to Occupational Health and Safety (“OHS”) Regulations and employ best-practice
policies and procedures throughout our business. Additionally, CSI takes proactive measures to promote anenvironmentally friendly and employee-supportive workspace by responding efficiently to accidents andemergencies and implementing practices that benefit the environment while minimizing risks to health andsafety. Our offices are smoke-free, undergo regular cleaning, pest control, and fan coil unit and carpet cleaning
to ensure excellent indoor air quality.
Apart from general OHS practices, we provide healthcare and pension plans in line with local market
standards for our permanent staff, including parental leave, while complying with statutory requirements at
different office locations.

Covid-19 Arrangement
At CSI, the health and safety of our employees is of utmost importance. To ensure the wellness of ourworkforce and maintain efficient operations, we have implemented a range of measures, including thosespecifically aimed at preventing the spread of COVID-19. Our Crisis Management Team issued timely antipandemic notices and made special work-from-home arrangements during the pandemic to reduce the riskof cross-infection. We also encouraged tele-meetings and video conferences as an alternative to face-to-facemeetings to maintain social distancing. In addition, all employees in our Hong Kong office were encouraged
to take vaccination injections and granted one day of vaccination leave per injection. We provided masks, test
kits, and hand sanitizers to our staff to maintain a clean and hygienic working environment. These measuresdemonstrate our commitment to ensuring the health and safety of our employees and their families, as well as
our dedication to providing a safe working environment for all.

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CSI Sustainability Report 2022

SECTION 7OURENVIRONMENTALPERFORMANCE– Environmental Compliances and Policies– Emissions– Climate Change– Energy Management– Waste Management

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OUR ENVIRONMENTALPERFORMANCE
Environmental Compliances and Policies
CSI is dedicated to reducing our environmental impact and minimizing our use of natural resources. Since
2007, we have implemented our ISO 14001-certified environmental management system (“EMS”) across 80%
of our offices. This requires us to undergo annual audits in Hong Kong, with regional offices audited every
three years.
Aligned with our “Clean and Green” philosophy, we established our own environmental policies to guide ourbusiness towards a greener operation. Our commitments include but not limited to:Ensuring compliance with all relevant environmental legislation and regulations, aswell as other applicable requirements. We stay updated to all environmental laws andcontinually seek to improve our environmental performance wherever possible.

Operating our facilities and deliver services in a sustainable manner. We strive toprotect the environment by determining and adopting best practices to conserve energy
and resources, while minimizing pollution and achieving sustainable improvement.

Maintaining an environmentally friendly and safe workplace, implementing measures
to minimize environmental, health, and safety risks, and responding effectively toaccidents and emergencies.

Utilizing monitoring programs and analyses to assess our environmental performance,
communicate our top management’s environmental commitment and achievements
through annual reports distributed to stakeholders.

Seeking active cooperation in improving attitudes towards environmental issues within
the community we operate in.

We are one of the first financial firms in Asia to write about pollution, carbon
trading and “the greening of Asia”. Our Head of Sustainable Research provides
investors with a mandate for social and environmental investment, as well as
insight into the companies, issues and trends leading this growth area in Asia andbeyond.

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OUR ENVIRONMENTALPERFORMANCE
Emissions
We are committed to reducing our GHG emissions through energy and fuel efficiency initiatives. Whenbusiness travel is not impacted by COVID-19, we reduce emissions from air travel through video conferencing.
We also regularly review and control business travel arrangements to minimise wastage of fuel consumption
and use appropriate carriers that are able to provide more efficient journey routes.

Greenhouse Gas Emissions
During the reporting period, the CSI Group’s business activities contributed to the GHG emission of
4,107.48 tonnes of carbon dioxide equivalent (“tCO2eq.”), mainly carbon dioxide, methane, nitrous oxideand hydrofluorocarbons. The overall intensity of the GHG emissions for the CSI Group was 0.13 tCO2eq./
m2 with reference to the total floor area of the CSI Group’s business operations. Starting from this year, weare enhancing our carbon disclosure by reporting the scope 3 emissions using available emission factors andcalculation methodology. For details of the GHG emissions in the previous reporting period, please refer toAppendix I – Key Performance Summary.
Scope of
GHG Emissions

Emission(in tCO2eq.)

Total Emission(in %)

43.32

1%

3,521.83

86%

Scope 1 Direct Emission
Combustion of petrol for mobile sources
Scope 2 Energy Indirect Emission
Purchased electricity
Scope 3 Other Indirect Emission
Electricity used for freshwater processing

0.47

Electricity used for sewage processing

0.23

Business air travel13%

541.63

Total

4,107.48

100%

Air emissions
The Company-owned, fossil-fueled vehicles were used for daily business operations, which contributed to theemissions of nitrogen oxides (“NOx”), sulphur oxides (“SOx”) and respiratory suspended particles (“RSP”).
Air emissions (non-GHG) from mobile combustion
Fuel source

Usage

PetrolFor vehicles
Total

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CSI Sustainability Report 2022

NOx
(in kg)SOx(in kg)RSP(in kg)

8.98

0.24

0.66

8.98

0.24

0.66

OUR ENVIRONMENTALPERFORMANCE
Climate Change
Climate change is the defining issue of the century. CSI acknowledges the significance of climate change
and sustainability issues. As global warming intensifies, we are aware of our exposure to growing numberof climate risks in our operation, which may include disruption of production, as well as damage to facilities
caused by extreme weather such flooding and typhoons. They can potentially affect the financial stability andlong-term development of business.
As such, the CSI Group has endeavoured to identify the risks and opportunities that climate change poses toour business operations and our investments, along with corresponding strategies to mitigate risks and to takeadvantage of arising opportunities. This year, the CSI Group has taken its first step to disclosing our climaterelated risks and opportunities. We target to continuously improve the resilience of our Group to climaterelated risks.

Tools and Metrics
With reference to the climate-related risks suggested by the TCFD Recommendations, we have identified
physical and transition risks that are relevant to its business and risk management. We conducted a climate
risk assessment with the engagement of third party professionals to identify, assess, and quantify the relevant
climate-related risk to the CSI Group’s management.

The assessment results are summarized in thetable below. The risk matrix has contributed to
identifying and prioritizing the risks. The CSIGroup is committed to managing all identified
risks and has attached importance to the highlevel risks.

Medium

High

High

Low

Medium

High

Low

Low

MediumLow

SeverityHigh

During the assessment process, we have rated the level of likelihoods and severity of the identified climaterelated risks that are relevant to our operations, with a descriptive ranking system from low to high. The
likelihood represents the probability of the risk occurring and the severity represents the damage orconsequence the risk could create. The risk level of a certain risk is then determined from the risk matrix
below.

Low

High

Likelihood

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Climate-Related Risks
ClimateRisk typeTime horizon

Overallrisk level

Potential financial impact

Physical Risks

Acute

Chronic

Short termLong term

High

Extreme weather events with increased severity during
cyclones, hurricanes, storm surges and floods can cause
supply chain interruption by bringing damage to local
infrastructure, potential damage to office, and humanresources disruption.

High

Longer-term shifts in climate patterns can increase capitalcosts, operating costs, costs of human resources andincreased insurance premiums and potential for reduced
availability of insurance on assets in locations with highexposure to natural disasters.

High

Upon implementation of tightened environmental laws,
the CSI Group will expect increased operation cost suchas the compliance with relevant laws and regulations.

Low

During the transitional period, the CSI Group expects
increased R&D and/or procurement expenditures tointroduce new and alternative technologies in minimising
environmental externalities of its products, and additional
cost of adopting/deploying new practices and processes.

Low

In the face of the rapid growth of sustainability investing
and the increasing significance of ESG factors for investors
and the public, it is crucial for us to provide ESG research
products and services. Failing to do so would put us at a
disadvantage compared to other brokers in terms of our
product offerings and brand positioning. Consequently,
we would miss out on business opportunities arising fromthe surge in sustainable investing, resulting in a loss ofmarket share. Hence, it is imperative that we adapt to thisevolving landscape to maintain our competitiveness in themarket.

Low

Companies that are seen as contributing to climatechange or not doing enough to address it may face
reputational damage, which could harm their ability to
attract and retain clients and investors. With growing
awareness of climate change and its impacts, investors
and consumers are increasingly looking for companies
that demonstrate a commitment to sustainability andresponsible environmental practices.

Transition Risks
Policy and
Legal

Technology

MarketReputation

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Long termLong term

Medium termLong term

CSI Sustainability Report 2022

OUR ENVIRONMENTALPERFORMANCE
Our operation is primarily impacted by physical risks and the policy and legal risk during the transition
to a low-carbon economy. Nonetheless, we have taken steps to gradually integrate ESG risks into ourcomprehensive risk management system. Following CITIC Securities’ comprehensive risk management
framework, we continuously enhance our control and management of ESG risks at both the company andbusiness levels. This includes assessing, measuring, monitoring, responding to, and reporting on these risks.
These measures aim to improve the effectiveness of our non-financial risk control and support the long-termsustainable development of the CSI Group. Despite the challenges posed by climate change, we maintain an
optimistic outlook with our strategies and policies in place.
On the other hand, risks associated with technology, market, and reputation were considered as low risks
potential they hold for the growth of the CSI Group’s business. The shift in consumer preferences towards
environmentally friendly products and investments has presented business opportunities and opened up
new avenues for the development of the CSI Group. More specific information regarding climate-related
opportunities can be found in the following section.

Climate-related Opportunities
Despite potential climate-related risks, we have identified opportunities in the transition to a low-carbon
economy that can positively impact our long-term prosperity. We have developed green and sustainability
bonds, which have diversified our product portfolio and increased revenue. These bonds are designed tofinance environmentally friendly projects and initiatives and have grown in popularity among investors
seeking to align their investments with their values. The CSI Group has played a key role in developing
innovative financial products, establishing ourselves as a market leader in providing sustainable investments,
and positioning ourselves for future opportunities.
By integrating ESG factors into our investment analysis and decision-making processes, we can identify andcapitalize on opportunities that align with our clients’ values and manage risks associated with companies that
do not meet ESG standards. This approach has the potential to enhance our reputation, attract new clients,and mitigate environmental and social risks.

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OUR ENVIRONMENTALPERFORMANCE
Energy Management
We recognize that reducing our energy consumption is a critical part of our commitment to sustainability. Oneof the major issues we face in our office-based operations is electricity consumption. To address this challenge,
our global offices are working to implement and track the adoption of sustainable design features in ourbuildings and offices.
One key strategy we’re pursuing is the incorporation of energy-efficient lighting and equipment. By replacing
outdated lighting and equipment with more efficient options, we hope to reduce our energy consumption andassociated greenhouse gas emissions. Additionally, we’re procuring renovation materials and fittings withsustainability attributes to support more sustainable building and office design.
We actively promote a green office culture within our operation. Building upon the practices of CITIC
Securities, we have made ongoing enhancements to our office systems by digitizing the printing andtransmission of all non-confidential documents, presentations, and other information. Furthermore, wehave introduced a document printing system that incorporates the responsible collection and utilization of
consumables like printing paper and ink cartridges. Additionally, we have placed signage in office areas toencourage our employees to use electricity efficiently.

Total Energy Consumption
The total energy consumption of the CSI Group was 5,905.26 MWh during the reporting period, representing
an intensity of 0.27 MWh/m 2. The administration department keeps track of the CSI Group’s energy
consumption and will notify related divisions/departments if there is unusual increase in energy consumption.
In 2022, the largest energy source used by the CSI Group is electricity (97%). We closely monitor ourelectricity consumption and implement various efficient energy use initiatives as described in the section
above.

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OUR ENVIRONMENTALPERFORMANCE
Waste Management
We have produced some hazardous materials such as batteries, toner cartridges, and electronics. In 2022, we
produced 8,985 kg of hazardous waste. Most of them were collected and appropriately treated by certified
waste handlers. While our India office in Mumbai properly recycled all the UPS Batteries.
Our non-hazardous waste comprises domestic wastes, metals, plastic, and paper wastes. In 2022, we
generated 64,534 kg of non-hazardous waste, of which 32,520 kg were recycled. The disposal of hazardousand non-hazardous waste is in accordance with applicable laws.
In our efforts to minimize office waste, over half of our offices worldwide have implemented water filters toeliminate the need for plastic water bottle dispensers. This environmentally friendly solution not only reduces
the use of large plastic water bottles but also cuts down on associated delivery costs. Additionally, in mostof our offices, we offer reusable chopsticks and cutlery as an alternative to disposable wooden or plastic
utensils, further reducing waste in our day-to-day operations. Also in Hong Kong, we participate in the annual
Electronic Waste Recycling Campaign, which enables our office and individuals to donate electronics to NGOs
for reuse or to have their component parts reused or recycled in an environmentally responsible way.
In Hong Kong, our property management company, Swire Properties, is ISO 14001-certified and supports
recycling efforts. Environmental activities are occasionally held for its tenants. Starting from this year, weare collecting data on solid and hazardous waste across its operations and are disclosing relevant data inthis Report. We target to report on it systematically for offices that can receive this data from their property
managers.

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SECTION 8OURCOMMUNITY56

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OUR
COMMUNITY
CSI is committed to making a positive impact in the communities where we operate. We believe that bysupporting community outreach programs, we can contribute to the betterment of society and create lastingchange.
Our employees are at the heart of this effort. During the Reporting Period, we are proud to announce that
our employees volunteered over 1,000 hours of their time to meaningful causes. Through our global networkof offices, we support numerous community outreach programs that enable our employees to offer theirtime and skills to worthwhile local causes. Our mother company, CITIC Securities was listed on the “2022Top Ten Excellent Cases of Chinese Brands Going Overseas” through the community engagement initiatives
implemented by CSI.
To further encourage employee involvement, we offer two days of paid volunteer leave per year. This leave canbe used to visit and assist CITIC CLSA Trust projects, volunteer at charity events, or participate in community
outreach events. We believe that by providing our employees with opportunities to engage with theircommunities, we can foster a sense of purpose and help build stronger, more resilient societies.

CITIC CLSA Trust
The CITIC CLSA Trust was formerly named as the CLSA Chairman’s Trust. The Chairman’s Trust provides
financial and human capital to support disadvantaged individuals, groups and communities across Asia,
Australia, Europe and the Americas. As of 8 February 2022, the Trust changed its name to CITIC CLSA
Trust, and its Trustee to CSI. CITIC CLSA Trust has restarted its operations in the third quarter of 2022,
continuing its commitment to serving communities. CSI supports the operating costs of the Trust toensure that 100% of all funds raised go to funding recipients.
With a core focus on poverty alleviation and education promotion, CITIC CLSA Trust aims to provide
grants to NGOs in various sectors. CITIC CLSA Trust has commenced operations and received numerous
applications from local and overseas charitable organizations in Hong Kong since its relaunch. The trust
has fulfilled its corporate social responsibility by making its first charitable donation to the Hong Kongcharitable organization, Po Leung Kuk in December 2022. The first donation to Po Leung Kuk will further
enhance the branding and outreach of CITIC CLSA Trust. Po Leung Kuk is one of the largest and oldest
charitable organizations in Hong Kong, serving over 800,000 people annually on average.

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OUR
COMMUNITY
While fulfilling our social responsibilities, our committed team of volunteers focuses on supporting community
projects under the four categories of “Youth Education,” “Diversity and Inclusion,” “Poverty Alleviation,” and “Environmental and Sustainable Development.” We aim to provide support to those in need, establish a positive
corporate image, and promote business growth, creating a win-win situation.
Total volunteer hours in 2022
more than

1,000

hours

Total number of employees
volunteered in 2022
more than

750

employees

While most volunteer activities occur on the weekends, we encourage our employees to take advantage of
their volunteer leave to get into the community. Through this approach, we hope to create a culture of givingback and inspire others to join us in making a meaningful impact.

A.

Building a Stronger Community
At the heart of our mission is a commitment to building a stronger, more inclusive community. We
believe in promoting social inclusion, improving community health, and providing care and support tothose in need. Through these efforts, we aspire to create a more equitable and compassionate society,where everyone has the opportunity to thrive and reach their full potential.

Social Inclusion
To enhance social inclusion, we partnered with Dignity Kitchen of Project Dignity Hong Kong inAugust 2022 to prepare and distribute hot meals to underprivileged members of our local community.
Project Dignity Hong Kong is a local enterprise that provides training and employment opportunities
for individuals with disabilities. During the activity, our employees packed 120 meal boxes anddistributed them to those in need. In December 2022, we had
the privilege of participating in the Hong Kong Inclusive Kinball Cup 2022, a social inclusion event organized by a local
charity named TREATS. The event featured nearly 80 students
from special schools with disabilities and volunteers from six
major corporate organizations who formed six sports teams.
Our volunteers, alongside students from Hong Kong Red
Cross Princess Alexandra School, attended several training
sessions to prepare for the tournament. Our CSI team emerged
victorious and won the Inclusive Diamond Cup. Through inclusive sports, children with disabilities
can break down barriers, unlock their full potential, and develop their confidence. We are proud tosupport such initiatives that foster a more inclusive and supportive community, where everyone could
participate and thrive.

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COMMUNITY
CSI is committed to caring for the underprivileged in our community. To celebrate the 25th anniversaryof the establishment of the Hong Kong Special Administrative Region (“HKSAR”), we launched the “Sharethe Love” program in June 2022. The program aimed to express community support and care for thosein need, spreading the joy of the anniversary throughout the community. We collaborated with Foodlink
Foundation and Helping Hand, two local charities dedicated to fighting hunger and serving the elderly
in need, respectively. Our volunteers packed and distributed blessing bags with food, daily necessities
and anti-epidemic items to the people in need. In addition to the “Share the Love” program, we also
supported other community programs throughout 2022 that provided aid to underprivileged membersof the community. These programs include:•

Helping Hand Cookie Campaign in April 2022o•Elderly Support Phone Services in April 2022o•

CSI teamed up with Hong Kong Christian Service Un Chau Neighbourhood Elderly Centre
to provide weekly phone calls for four consecutive weeks, offering care and support to theelderly.

Society for the Prevention of Cruelty to Animals (“SPCA”) Flag Day in August 2022o•

Our employees supported the campaign organized by Helping Hand by buying the cookies
to raise funds for the elderly and other underprivileged groups.

Our volunteers (including our employees and their families) participated in a fundraising
day organized by SPCA to support the daily needs and medical treatments of animals
waiting for adoption.

International Volunteer Day: Deliver Necessities to the Homeless in December 2022o

Our volunteers visited the homeless individuals in Wanchai, Hong Kong and provided themwith essential items such as food, winter clothes and scarves. Through these efforts, they
provided the homeless individuals with warmth and comfort during the cold season.

At CSI, we believe that festivals are a time to spread joy and show care for the underprivileged in ourcommunity. In 2022, we participated in various community activities during festivals:•

Chinese New Year – Red Packet Origami Workshop in January 2022
o•Dragon Boat Festival – Rice Dumpling Workshop and Distribution in May 2022o59

Our volunteers connected with children from low-income families online and taught them
how to create flower and fish decorative handcrafts using red packet envelopes.

Our volunteers continued CSI’s tradition of giving rice dumplings to those in need tospread kindness and care to those in need during the festival season.

CSI Sustainability Report 2022

OUR
COMMUNITY•

Mid-Autumn Festival – Traditional Lantern Making Workshop in August 2022o•

CSI hosted an extraordinary traditional lantern workshop with Viva Blue House and local
paper-crafting master to make traditional lanterns with the ethnic minority kids.

Mid-Autumn Festival – Mooncake Workshop and Home Festive Service in September 2022o

CSI collaborated with the Society for Community Organization (“SoCO”) and Rotary
Club of Hong Kong to share mooncakes with the underprivileged and those in need. Our
volunteers made mooncakes and packed them together with fortune food bags as gifts.
These gifts were delivered to residents living in wooden partitioned cubicles and subdivided units in Shamshuipo, Hong Kong.

Through these efforts, we aim to show support and bring joy to those in need and create a more caring
and inclusive community.

Health Promotion
CSI recognizes the importance of promoting health and wellness in our community. As part of ourcommitment to this goal, our employees were mobilized to support Pink Revolution, the Cancer Fund’sannual breast cancer awareness initiative. In July to November 2022, our employees supported theinitiative through charitable donations, taking part in a series of yoga courses and a “Yoga for Pink”
event designed to spread awareness and fund research towards a cure for breast cancer.
To support the Orbis World Sight Day 2022, our employees from Amsterdam, Hong Kong, Japan, Korea,
London, Singapore and Thailand have joined hands to raise funds and promote public awareness forfighting preventable blindness. Our employees have also supported the Orbis Mid-Autumn Charity Saleby selling charity packages and making generous donations. The fund raised was used for supporting eye
screening, treatment for eye diseases, public education, regional medical training, and other initiatives
aimed at assisting visually impaired patients in impoverished areas.
Amidst the unprecedented COVID-19 crisis, we have proactively extended support to the community
and uplifted the underprivileged by taking part in various programs aimed at mitigating the impact ofthe pandemic and providing assistance to those in need, through the following programs:•

Fighting the Virus with the Homeless in March 2022o60

CSI collaborated with ImpactHK to share “Nutri-rich” mini Poon Choi with needy facing
financial hardship.

CSI Sustainability Report 2022

OUR
COMMUNITY•

Emergency Care Pack Delivery in March 2022o•Assembling Anti-Epidemic Supply Kits in March 2022o•

CSI supported Refugee Union to provide food, non-perishable staple food boxes andsanitary supplies for the immediate need of asylum seekers and refugees, who struggled tolive in substandard living conditions and without the right to work.

English Reading Enrichment Program in April 2022o61

Our volunteers joined more than 10,000 volunteers to pack anti-epidemic supply kits in
response to the Hong Kong Community Anti-Coronavirus Link. These kits were distributed
to all Hong Kong households to fight against the pandemic.

Emergency Food Drive for Refugee Union in March 2022o•

CSI donated relief support packs (including 450
antigen testing kits, 22,500 surgical masks, riceand canned food) to the elderly from Harmony
Garden Lutheran Centre for the Elderly, Yau On
Lutheran Centre for the Elderly and Sun Chui
Lutheran Centre for the Elderly and low income
families.

Our volunteers provided online storytelling service to Books and Beyond Reading Club toempower children by fostering reading capabilities and share positive values. This program
also allowed schools to allocate resources for COVID-19 testing, vaccination and isolation
purposes.

CSI Sustainability Report 2022

OUR
COMMUNITY
B.

Youth Education and Support
As we strive to create a more sustainable future, we acknowledge our responsibility to promote youth
education and offer guidance for career planning. By providing our next generation with a decent
learning environment and adequate support, we aim to nurture future leaders with the knowledge andskills to address future challenges.
In July 2022, we participated in Habitat for Humanity’s Hong Kong Project School Works program. Our
volunteers joined hands with students from a local school in Tin Shui Wai to create vibrant murals on thecampus walls, making the school a more cheerful and conducive place for learning. Our volunteers areproud to be part of the Project School Works program, which aims to uplift the learning environment ofunderprivileged students through art.
To promote literacy and boost children’s passion for reading in a green way, CSI held its annual Sharea-toy and Book Donation Drive in August 2022. Our volunteers visited children from childcare services
and after-school care services and distributed gifts at Sham Shui Po District Council Po Leung Kuk Shek
Kip Mei Community Services Centre. The gifts included storybooks, building blocks, toy cars, toy trucks,
toy trains, electronic games, learning toys, dolls and puzzles, etc.
In November 2022, CSI participated in Community Chest New Territories Walk for Millions 2022/23
to raise funds for family and child welfare services supported by the Community Chest. A total of 88 of
our staff, along with their families and friends, attended the event held at the Cross Bay Link. We are
grateful to have contributed to this important cause and supported the families and children in need.
We recognize our responsibility to guide and support the youth in their career planning anddevelopment. As part of our commitment, CSI supported the Hong Kong Arts and Culture Development
Centre (“HKACDC”) Program. Through our Career Planningand Mentoring Program, we provided 120 students with realworld business experience. In August 2022, we also welcomed
70 secondary school students to our Hong Kong office, where
they received valuable career advice and industrial knowledge
from our experienced staff. The students also had theopportunity to learn more about our company through a site
visit, making this a valuable and enriching experience for all
involved.

62

CSI Sustainability Report 2022

OUR
COMMUNITY
C.

Environmental and Sustainable Development
CSI is committed to creating a more sustainable future for our planet. To reduce our collective
environmental impact, CSI has been actively promoting sustainable lifestyle choices among our staff
through awareness-raising initiatives. These programs included upcycling workshops, tree adoption andplanting, food waste reduction and food assistance service, urban farming, and coastal cleanup.

Upcycling Workshops
From April to July 2022, a series of Eco Upcycling Workshops were organized at the Hong Kong office.
These workshops were designed to promote repurposingof waste materials and hence reduce waste generation. The
workshops featured a range of activities, including:
•
•
•
•
•

DIY Workshop – Disinfectant Spray
DIY Workshop – Aromatherapy for Stress Relief
DIY Coffee Body Scrub Workshop
Microgreens Planting Workshop
Natural Mosquito Repellent Workshop

These workshops not only provided hands-on training on how to repurpose waste materials creatively
but also highlighted the benefits of natural ingredients and responsible consumption.

Trees Adoption and Planting
To celebrate the Earth Day in April 2022, CSI global staff has planted trees and built the “CLSA Global
Forest” through the tree adoption program from a platform run by a certified B-Corporation. It was thesecond year that our staff participated in this program and expanded the “CLSA Global Forest”. In 2022,
a total of 2,077 trees were adopted in Ecuador, Philippines, Uganda, Indonesia, Thailand and Malaysia.
Till now, 4,400 trees have been planted in the “CLSA Global Forest”. This initiative contributed to threeof the SDGs: Climate Action, Life on Land and Reduced Inequality. By expanding the “CLSA Global
Forest”, we are taking steps towards protecting our planet for future generations, while also improving
the lives and livelihoods of the communities where the trees are planted.

63

CSI Sustainability Report 2022

Total Trees Adopted in 2022

Total Trees Planted in the“CLSA Global Forest”

2,077

4,400

trees

trees

OUR
COMMUNITY
Apart from the tree adoption program, CSI organized two tree planting sessions at the Ma On Shanmining area in September and October 2022. In the first session, volunteers carried seedlings andplanting tools and completed an uphill hiking course to reach the designated site. Pits were dug, andthe seedlings were planted in the ground. In the second session, volunteers participated in thinning andpost-planting maintenance while hiking. The tree planting activity was followed by a guided heritage
tour, during which our volunteers learned about Ma On Shan mining conservation and worked together
to safeguard the natural environment. Through this immersive experience, volunteers gained a deeper
appreciation for the importance of preserving the natural environment and the role they can play incontributing to this essential cause.

Food Waste Reduction and Food Assistance Service
CSI is committed in addressing both hunger and surplus food waste problems in Hong Kong. Our goal is
to raise public awareness of the world’s food problems and strengthen solidarity in the global struggle
against hunger, malnutrition and poverty. Through our efforts to prevent food waste and redistributesurplus food to those in need, we hope to create a more sustainable and equitable food system. In May
to November 2022, our volunteers supported the surplus bread collection program of Breadline, a local
food-rescue platform that helps to fight food wastage in Hong Kong. With a mission to give old bread
new life, Hong Kong volunteers collected over 1,069 packages of surplus bread from bakeries such as
Arome Bakery, Maxim’s Group, Maison Kayser and Yamazaki Bakery. The bread was then redistributed
to beneficiaries, including low-income families, refugees, the elderly and ImpactHK’s homeless shelterin Tai Kok Tsui. In July 2022, our volunteers provided assistance to the central kitchen of Food Angeland prepared food ingredients that would be used to prepare hot meals for the underprivileged
communities. Food Angel is a charity program that rescues edible surplus food from different sectorsof the food industry and converts it into fresh meals for those in need. In September to October 2022,
our volunteers worked alongside our community partner, Feeding Hong Kong, to support their foodassistance program. The program included both monetary and in-kind donations, and our volunteers
also took part in packing food parcels. These parcels contained essential staples such as grain products,
rice packets, noodles, biscuits, canned food, and more. By participating in this initiative, we were able to
make a meaningful contribution towards addressing food insecurity in Hong Kong64

CSI Sustainability Report 2022

OUR
COMMUNITY
Urban Farming
CSI is dedicated to promoting sustainable practices by supporting local food production and reducing
the carbon footprint associated with food transportation. Through our participation in urban farming
activities, we also aim to provide our volunteers with an opportunity to reconnect with nature and learn
about food production. By promoting sustainable practices and supporting local communities, we hope
to contribute towards a more equitable and sustainable future for all.
In June 2022, CSI arranged a visit to Senior Buddy Charity Farm, a social enterprise that repurposes
under-utilized spaces in the city into urban organic farms. This organic farm cultivates a variety ofnutritious produce, which is then distributed to elderly people in Hong Kong. By participating in thisfarming experience, our volunteers gained a deeper understanding of how a sustainable lifestyle canbe achieved while also learning more about our food footprint. This initiative allowed us to support a
local charity program while also promoting sustainable practices and increasing awareness about foodsecurity in Hong Kong.
CSI Hong Kong initiated a community urban farming projectthat took place from July to November 2022. During thisproject, volunteers participated in transplanting, farming, andharvesting to create a small yet thriving market garden within
the Quarry Bay Park Community Garden. The vegetables thatwere harvested were then donated to Food Angel to support
underprivileged individuals in the community. This initiative not
only provided our employees with an opportunity to reconnect
with nature and learn about the impact of food production,
but it also demonstrated how our actions can contributetowards supporting the wider community and creating a moresustainable future.

Coastal Cleanup
In June 2022, CSI participated in a coastal clean-up campaign to support the World Ocean Day. The
campaign aimed to improve the shoreline and make Hong Kong a cleaner place to live. The clean-up
took place in Sam Mun Tsai, Tai Po, where volunteers were tasked with collecting debris such as foambeads, plastic bottles, disposable plastic utensils, and broken
glass. The volunteers also worked to return cleaner sand backto the beach. Through our participation in this campaign,
we were able to contribute towards a cleaner and healthierenvironment while promoting awareness about the importanceof ocean conservation.

65

CSI Sustainability Report 2022

ASSURANCESTATEMENTSGS Hong Kong Ltd’s Report on Sustainability Activities in CITIC Securities
International’s Sustainability Report 2022
Nature of the Assurance
SGS Hong Kong Limited (hereinafter referred to as SGS) was commissioned by CITIC Securities International
Company Limited (hereinafter referred to as CSI) to conduct an independent assurance of its Sustainability
Report 2022 (hereinafter referred to as the Report).

Intended Users of this Assurance Statement
This Assurance Statement is provided with the intention of informing all CSI’s stakeholders.

Responsibilities
The information in the Report and its presentation are the responsibilities of the directors, governing bodyand the management of CSI. SGS has not been involved in the preparation of any of the material included in
the Report. Our responsibility is to express an opinion on the text, data, graphs and statements within thescope of assurance with the intention to inform all CSI’s stakeholders.

Assurance Standards, Type and Level of Assurance
The SGS ESG & Sustainability Report Assurance protocols used to conduct assurance are based uponinternationally recognised assurance guidance and standards including the principles of reporting processcontained within the Global Reporting Initiative Sustainability Reporting Standards (GRI Standards) GRI 1:
Foundation 2021 for report quality, GRI 2 General Disclosure 2021 for organisation’s reporting practices andother organisational detail, GRI 3 2021 for organisation’s process of determining material topics, its list of
material topics and how to manages each topic, and the guidance on levels of assurance contained within the
AA1000 series of standards.
The assurance of this report has been conducted according to the following Assurance Standards:

66

Assurance Standard Options

Level of Assurance

AA1000ASv3 Type 2(AA1000AP Evaluation plus evaluation of Specified Performance Information)

Moderate

CSI Sustainability Report 2022

ASSURANCESTATEMENT
Scope of Assurance and Reporting Criteria
The scope of the assurance included evaluation of quality, accuracy and reliability of specified performance
information included the text and 2022 data in accompanying tables contained in the Report. Data andinformation of subsidiaries were included in this assurance process during the period from 1st January 2022
to 31st December 2022.
Reporting Criteria Options
GRI (In Accordance with)

Assurance Methodology
The assurance comprised a combination of pre-assurance research, on-site interviews in CSI’s Hong Kong
office, documentation and record review and validation with external bodies.

Limitations and Mitigation
Financial data drawn directly from independently audited financial accounts has not been checked back tosource as part of this assurance process.
Some statements and data within the scope were not assured due to lack of accessible records during thetimescale allowed for assurance, and these are clearly marked throughout the Report.

Statement of Independence and Competence
The SGS Group of companies is the world leader in inspection, testing and verification, operating in morethan 140 countries and providing services including management systems and service certification; quality,
environmental, social and ethical auditing and training; environmental, social and sustainability reportassurance. SGS affirm our independence from CSI, being free from bias and conflicts of interest with theorganization, its subsidiaries and stakeholders.
The assurance team was assembled based on their knowledge, experience and qualifications for thisassignment, and comprised auditors registered with IRCA EMS Principal Auditor, auditor of ISO 37001, ISO
26000 & ISO 45001 and nominated trainer of GRI Standards.

Assurance Opinion
On the basis of the methodology described and the verification work performed, nothing has come to ourattention that causes us to believe that the specified performance information included in the scope ofassurance is not fairly stated and has not been prepared, in all material respects, in accordance with thereporting criteria.
We believe that Moderate level of assurance for this report is appropriate for CSI this year.

67

CSI Sustainability Report 2022

ASSURANCESTATEMENT
Quality and Reliability of Specified Performance Information
CSI has developed measuring tools to record all the required data. The quality of the information disclosed in
the Report was found to be satisfactory. The data were accurate and reliable.

Adherence to AA1000 Accountability Principles (2018)
INCLUSIVITY: Stakeholder engagement has been completed and the engagement frequency is determinedclearly.
MATERIALITY: Referring to the structured stakeholder engagement & materiality assessment, 21 material
topics were prioritized and confirmed.
RESPONSIVENESS: CSI took actions to address these material topics in a timely manner.
IMPACT: The impacts of CSI caused, contributed to and mitigated were clearly explained.
Signed:For and on behalf of SGS Hong Kong Limited

Miranda Kwan
Director
Knowledge Solutions
18 September 2023
WW.SGS.COM

68

CSI Sustainability Report 2022

APPENDICES
Appendix I – Key Performance Summary
Economic Performance
Unit

2022

2021

US$ Million

1,414.35

924.53

Unit

2022

2021

Nitrogen Oxides (“NOx”)

kg

8.98

N/A

Sulphur Oxides (“SOx”)

kg

0.24

N/A

Respiratory Suspended Particles (“RSP”)

kg

0.66

N/A

Direct GHG emissions (Scope 1)

t CO2eq.

43.32

45.81

Indirect GHG emissions (Scope 2)

t CO2eq.

3,521.82

3,222.29

Other indirect GHG emissions (Scope 3)

t CO2eq.

542.33

N/A

Total GHG Emissionst CO2eq.

4,107.48

3,268.10

t CO2eq./m2

0.13

N/A

kg

8.98

N/A

kg/m2

0.28

N/A

kg

64,534

N/A

kg/m2

1.99

N/A

kg

4,262.00

12,592.27

kg/employee

2.00

6.39

Electricity

kWh5,747,177.14

4,852,532

Total energy consumption

kWh5,905,263.49

N/A

Electricity intensity

kWh/m2

177.65146.03

Energy intensity

kWh/m

2

182.54

N/A

m3

1,094.10

N/A

m3/m2

0.034

N/A

Direct Economic value generated

Environmental Performance
Air Pollutant Emissions

GHG Emissions

GHG emission intensity
Waste
Total hazardous waste generated– intensity
Total non-hazardous waste generated– intensity
Paper Consumption
Paper consumption– intensity
Energy Consumption

Water Consumption
Total water consumption– water intensity

69

CSI Sustainability Report 2022

APPENDICES
Notes:
1.
2.

Air emissions data of 2021 were unavailable.
Emission factors for calculating air emissions data from vehicles were made reference to the Appendix 2: Reporting Guidance on Environmental
KPIs of How to Prepare an ESG Report, published by the Hong Kong Stock Exchange (“HKEX”).

3.

Company-owned vehicles were used in Hong Kong, Indonesia, Japan, South Korea, and Thailand office. Fuel consumption data were collected to
calculate the SOx emissions. Data on kilometers travelled by the vehicles were collected to calculate the emissions of NOx and RSP.

4.

The actual distance travelled by Company-owned vehicles in South Korea office could not be retrieved as no data has been kept in the past and thevehicles have been returned to the car rental company upon contract expiry. It is estimated by referring the fuel consumption data and compared it
to the fuel consumption per 100km distance travelled, using the Energy Utilisation Index – Transport Sector provided by the Hong Kong Electricaland Mechanical Services Department.

5.

Emission factors for calculating combustion of petrol were referred to Appendix 2: Reporting Guidance on Environmental KPIs of How to Prepare
an ESG Report, published by the HKEx.

6.

Emission factor used for purchased electricity in Australia, Mainland China, Hong Kong, India, Indonesia, Japan, Malaysia, Philippines, Singapore,
South Korea, Thailand, United Kingdom, and USA were referred to the Australian National Greenhouse Accounts Factors 2023, the Ministry of
Ecology and Environment of People’s Republic of China, HK Electric Investments Sustainability Report 2022, Climate Transparency Report 2022
– Indonesia, CO2 Baseline Database for the Indian Power Sector, TEPCO ESG Data 2021, TENAGA NASIONAL BERHAD Sustainability Statement
2022, Energy Profile – Philippines, Singapore Energy Statistics 2022, Climate Transparency Report 2022 – South Korea, EGAT Sustainability Report
2022, Greenhouse gas reporting: conversion factors 2022, and Projected Emission factors for New York State Grid Electricity, respectively.

7.

Electricity consumption data of the Netherlands office was not available separately, as it is included in the property management fee. The electricity
consumption of the Netherlands office in 2021 were only estimated based on the usage of switches for the computers and phones, and wifi
equipment.

8.

After careful consideration, the electricity usage data for the Netherlands office will no longer be estimated from 2022 onwards in order to provide
accurate information of the CSI Group’s electricity consumption and GHG emissions.

9.

Emissions from business air travel were calculated using the online tool provided by the International Civil Aviation Organization (“ICAO”).
Other categories of scope 3 GHG emissions were calculated based on available emission factors referred by Appendix 2: Reporting Guidance on
Environmental KPIs of How to Prepare an ESG Report.

70

10.

Hazardous waste data of mainland China and USA office were unavailable in 2022.

11.

Non-hazardous waste data of Australia, mainland China, Japan, South Korea, Singapore, and USA were unavailable in 2022.

12.

The unit for presenting paper consumption in 2021 has been converted from reams to kg to ensure consistency of data.

13.

The unit for presenting paper consumption intensity has been converted from reams/employee to kg/employee.

14.

Water data from Sydney, Shanghai, Kuala Lumpur, Amsterdam, Singapore, Seoul, London, and New York office are unavailable in 2022.

CSI Sustainability Report 2022

APPENDICES
Social Performance
Total Workforce

2022

2021

Group total

2,130

1,970

By employment type

Male

FemaleMale

FemalePermanent

1,225

712

1,162

670

Temporary

102

91

79

59

Full-time

1,323

792

1,239

721

Part-time

4

11

2

8

By gender
Male

1,327

1,241

Female803

729

Below 30519

414

30 – 50

1,324

1,261

Over 50287

296

Senior management

8

N/A

Middle management

489

N/A

Frontline staff and others

1,633

N/A

By age group

By employee grade

71

CSI Sustainability Report 2022

APPENDICES
2022
Geographical region

72

2021

Permanent

Contract

Permanent

Contract

Australia

63

2

62

3

Mainland China

7

2

5

1

Hong Kong

989

152

917

103

India

350

1

330

3

Indonesia

42

7

41

3

Japan

73

4

67

3

Malaysia

26

1

26

1

Netherlands

7

1

6

2

Philippines

32

1

31

1

Singapore

148

10

148

10

South Korea

49

2

49

3

Thailand

25

3

30

2

United Kingdom

71

6

61

1

USA

55

1

61

0

CSI Sustainability Report 2022

APPENDICES
Employee Turnover

2022

2021

Total turnover

386

435

Overall turnover rate

18%

22%

By geographical region

Total Number

Rate (%)

Total Number

Rate (%)

Australia

13

20%

28

43%

Mainland China

0

0%

2

33%

Hong Kong

189

17%

249

24%

India

77

22%

92

28%

Indonesia

3

6%

6

14%

Japan

4

5%

6

9%

Malaysia

5

19%

0

0%

Netherlands

0

0%

0

0%

Philippines

10

30%

5

16%

Singapore

48

30%

28

18%

South Korea

2

4%

5

10%

Thailand

6

21%

2

6%

United Kingdom

13

17%

3

5%

USA

16

29%

9

15%

Total Number

Rate (%)

Total Number

Rate (%)

Male

249

19%

293

24%

Female

137

17%

142

19%

Total Number

Rate (%)

Total Number

Rate (%)

Below 30

129

25%

130

31%

30 – 50

224

17%

280

22%

Over 50

33

11%

25

8%

By gender

By age group73

CSI Sustainability Report 2022

APPENDICES
New hires

2022

2021

Total new hires

495

589

Overall new hire rate

23%

30%

By geographical region

Total Number

Rate (%)

Total Number

Rate (%)

Australia

13

20%

33

51%

Mainland China

2

22%

3

50%

Hong Kong

265

23%

380

37%

India

104

30%

77

23%

Indonesia

5

10%

7

16%

Japan

11

14%

9

13%

Malaysia

5

19%

3

11%

Netherlands

1

13%

0

0%

Philippines

11

33%

6

19%

Singapore

46

29%

42

27%

South Korea

2

4%

7

13%

Thailand

1

4%

3

9%

United Kingdom

21

27%

10

16%

USA

8

14%

9

15%

Total Number

Rate (%)

Total Number

Rate (%)

Male

312

24%

373

30%

Female

183

23%

216

30%

Total Number

Rate (%)

Total Number

Rate (%)

Below 30

222

43%

233

56%

30 – 50

261

20%

330

26%

Over 50

12

4%

26

9%

By gender

By age group

74

CSI Sustainability Report 2022

APPENDICES
Development and training

2022

2021

Total training hours

32,043

N/A

Average training hours per employee

15.04

N/A

Male

15.35

11.2

Female

14.53

10.9

Senior management

19.06

N/A

Middle management

15.66

N/A

Frontline staff and others

14.84

N/A

Anti-discrimination

2022

2021

0

0

2022

2021

0

0

By gender

By employee grade

Number of incidents of discrimination
Anti-corruption
Concluded legal case regarding corrupt practices
Notes:
1.

The breakdown of employee number in 2021 by employment type, gender, and age group is estimated using the percentages from the corresponding
categories provided in the 2021 CSI Sustainability Report.

2.

The data of employee number in 2021 by employee grade is unavailable.

3.

The definition of employee turnover refers to employees who leave the Group voluntarily or due to retirement, dismissal or other reasons.

4.

Turnover rate refers to total number of employee turnover in the specific group per the total number of employees of the corresponding group*100%.

5.

The overall turnover rate was calculated by the number of employees left during the reporting period/the number of employees as of 31 Decemberof the reporting period *100%.

6.
7.

New hire rate refers to total number of new hires in the specific group per the total number of employees of the corresponding group*100%.
The overall new hire rate was calculated by the number of new hires during the reporting period/the number of employees as of 31 December of thereporting period *100%.

8.

Senior Management, Middle Management, and Frontline and Other Staff refers to Department Head level, People Managers, and Individual
Contributors without direct reports, respectively. Both front office and back office apply.

9.

75

The total training hours, average training hours per employee, and average training hours by employee grade in 2021 is unavailable.

CSI Sustainability Report 2022

APPENDICES
Appendix II – GRI Standards Content Index
Statement of use

CITIC Securities International has reported in accordance with the
GRI Standards for the period 1 January 2022 to 31 December 2022.

GRI 1 used

GRI 1: Foundation 2021

Application of GRI Sector Standard Not Applicable
GRI Standard/
other sources

Disclosure

Location

Omission

ReasonRequirement(s)OmittedGeneral Disclosures
The organization and its reporting practices
GRI 2: General
Disclosure 2021

2-1 Organizational detail

About CSI – Business Overview

2-2 Entities included in theorganization’s sustainability
reporting

About this Sustainability
Report– Reporting Approach

2-3 Reporting period,
frequency and contact point

About this Sustainability
Report– Reporting Approach

2-4 Restatements of
information

No information restatement

2-5 External assurance

The Sustainability Report wasreviewed and approved by the
Board.

2-6 Activities, value chain andother business relationships

Chairman’s message to
stakeholders
About CSI – Business Overview
Performance Review andHighlights

2-7 Employees

Caring for our colleagues
Appendix I – Key Performance
Summary

2-8 Workers who are not
employees

The CSI Group does nothave workers who are not
employees.

Activities, value chain and other business relationships

Governance76

2-9 Governance structure andcomposition

Sustainability Governance

2-10 Nomination and selectionof the highest governance body

Sustainability Governance

2-11 Chair of the highest
governance body

Sustainability Governance2-12 Role of the highest
governance body in overseeing
the management of impacts

Sustainability Governance

CSI Sustainability Report 2022

Explanation

APPENDICESGRI Standard/
other sources

Disclosure

Location

Omission

ReasonExplanation

Requirement(s)Omitted
2-13 Delegation of
responsibility for managing
impacts

Sustainability Governance

2-14 Role of the highest
governance body insustainability reporting

Sustainability Governance

2-15 Conflicts of interest

Sustainability Governance

2-16 Communication of criticalconcerns

Sustainability Governance

2-17 Collective knowledge ofthe highest governance body

Sustainability Governance

2-18 Evaluation of theperformance of the highest
governance body

Board Structure

2-19 Remuneration policies

OmittedGRI 2-19 (a)Confidentiality
constraints

As a nonlisted company,
remuneration policies
for members of thehighest governancebody and senior
executives, including
payments and benefits
were not disclosed
due to confidentiality
constraints.

2-20 Process to determine
remuneration

OmittedGRI 2-20

Confidentiality
constraints

As a non-listedcompany, process
to design CSI’s
remuneration policies
and determine
remuneration were
not disclosed due
to confidentiality
constraints.

2-21 Annual totalcompensation ratio

OmittedGRI 2-21

Confidentiality
constraints

Compensation ratios
were not disclosed
due to confidentiality
constraints.

Strategy, policies and practices

77

2-22 Statement on sustainable
development strategy

Chairman’s message
Sustainability Commitment

2-23 Policy commitments

Sustainability Commitment
Corporate Governance
Excellence in Investment
Services
Value Chain
Our People
Our Environmental
Performance

CSI Sustainability Report 2022

APPENDICESGRI Standard/
other sources

Disclosure

Location

Omission

ReasonExplanation

Confidentiality
constraints

Economic value
distributed andretained were notdisclosed due toconfidentiality
constraints.

Requirement(s)Omitted
2-24 Embedding policy
commitments

Corporate Governance
Excellence in Investment
Services
Value Chain
Our People
Our Environmental
Performance

2-25 Processes to remediate
negative impacts

Sustainability GovernanceBusiness Ethics
Value Chain

2-26 Mechanisms for seeking
advice and raising concerns

Business Ethics

2-27 Compliance with laws andregulations

Business ethics
Anti-bribery and corruption
Value Chain
PeopleOur Environmental
Performance

2-28 Memberships
associations

Sustainable Finance
Stakeholder engagement

2-29 Approach to stakeholder
engagement

Stakeholder Engagement

2-30 Collective bargaining
agreements

There are no formal collective
bargaining agreements arein place within CSI. However,
our employees can enjoy
the freedom to take part intrade unions and collective
bargaining if they wish.

3-1 Process to determinematerial topics

Materiality Assessment

Material Topics
GRI 3: Material
Topics 2021

3-2 List of material topics

Materiality Assessment
GRI 201: Economic Performance 2016

GRI 3: Material
Topics 2021

3-3 Management of material
topicsExcellence in Investment
Services

GRI 201-1

Direct economic value
generated and distributed

Appendix 1 – Key Performance
Summary

GRI 202: Market Presence 2016

78

GRI 3: Material
Topics 2021

3-3 Management of material
topicsCaring for our colleagues

GRI 202-2

Proportion of senior
management hired from thelocal community

All of our senior management
are hired from local community.

CSI Sustainability Report 2022

201-1-a-ii
201-1-a-iii

APPENDICESGRI Standard/
other sources

Disclosure

Location

Omission
Requirement(s)OmittedGRI 205: Anti-corruption
GRI 3: Material
Topics 2021

3-3 Management of material
topicsAnti-bribery and Corruption

GRI 205-1

Operations assessed for risks
related to corruption

Anti-bribery and Corruption

GRI 205-2

Communication and training
about anti-corruption policies
and procedures

Anti-bribery and Corruption

GRI 205-3

Confirmed incidents ofcorruption and actions taken

Anti-bribery and Corruption
GRI302: Energy 2016

GRI 3: Material
Topics 2021

3-3 Management of material
topicsEnvironmental Compliancesand Policies
Energy Management

GRI 302-1

Energy consumption within theorganization

Energy Management

GRI 302-3

Energy Intensity

Energy Management

GRI 3: Material
Topics 2021

3-3 Management of material
topicsEnvironmental Compliancesand Policies

GRI 305-1

Direct (Scope 1) GHG
emissions

Emissions
Appendix I – Key Performance
Summary

GRI 305-2

Energy indirect (Scope 2) GHG
emissions

Emissions
Appendix I – Key Performance
Summary

GRI 305-3

Other indirect (Scope 3) GHG
emissions

Emissions
Appendix I – Key Performance
Summary

GRI 305-4

GHG emissions intensity

Emissions
Appendix I – Key Performance
Summary

GRI 305-7

Nitrogen oxides (NOx), sulfur
oxides (SOx), and othersignificant air emissions

Emissions
Appendix I – Key Performance
Summary

GRI 3: Material
Topics 2021

3-3 Management of material
topicsWaste Management

GRI 306-1

Waste generation andsignificant waste-related
impacts

Waste Management

GRI 306-2

Management of significant
waste related impacts

Waste Management

GRI305: Emission 2016

GRI 306: Waste 2020

79

GRI 306-3

Waste generated

Waste Management

GRI 306-4

Waste diverted from disposal

Waste Management

GRI 306-5

Waste directed to disposal

Waste Management

CSI Sustainability Report 2022

ReasonExplanation

APPENDICESGRI Standard/
other sources

Disclosure

Location

Omission
Requirement(s)OmittedEnvironmental Compliance
GRI 3: Material
Topics 2021

3-3 Management of material
topicsEnvironmental Compliancesand Policies
Climate Change Responses

GRI 3: Material
Topics 2021

3-3 Management of material
topicsClimate Change
GRI 401: Employment 2016

GRI 3: Material
Topics 2021

3-3 Management of material
topic

Caring for Our Colleagues

GRI 401-1

New employee hires andemployee turnoverAppendix I – Key Performance
Summary

GRI 401-2

Benefits provided to fulltime employees that are notprovided to temporary or parttime employees

Caring for Our Colleagues

GRI 404: Training and Education 2016
GRI 3: Material
Topics 2021

3-3 Management of material
topicsEmployee Development andTraining

GRI 404-1

Average hours of training peryear per employee

Appendix I – Key Performance
Summary

GRI 404-2

Programs for upgrading
employee skills and transition
assistance programs

Employee Development andTraining

GRI 405: Diversity and Equal Opportunity 2016
GRI 3: Material
Topics 2021

3-3 Management of material
topicsDiversity, Inclusion, and nondiscrimination
Employee Development andTraining

GRI 405-1

Diversity of governance bodies
and employees

Sustainability Governance
Caring for Our Colleagues
Appendix I – Key Performance
Summary
GRI 413: Local Communities 2016

80

GRI 3: Material
Topics 2021

3-3 Management of material
topicsOur Community

GRI 413-1

Operations with local
community engagement,
impact assessments anddevelopment programs

79% of our operations
implemented local community
development program (treeplanting) in 2022

CSI Sustainability Report 2022

ReasonExplanation

APPENDICESGRI Standard/
other sources

Disclosure

Location

Omission

ReasonRequirement(s)OmittedGRI 416: Customer Health and Safety 2016
GRI 3: Material
Topics 2021

3-3 Management of material
topicsExcellence in Investment
Service

GRI 416-2

Incidents of non-complianceconcerning the health andsafety impacts of products andservices

In 2022, the CSI Group does
not note any non-compliancewith regulations or voluntary
codes concerning health andsafety impacts of products
and services that resulted in awarning, fine or penalty.
GRI 418: Customer Privacy 2016

GRI 3: Material
Topics 2021

3-3 Management of material
topicsCustomer Privacy

GRI 418-1

Substantiated complaints
concerning breaches ofcustomer privacy and losses ofcustomer data

Customer Privacy

GRI 3: Material
Topics 2021

3-3 Management of material
topicsBusiness Ethics
Anti-bribery and corruption

Professional Integrity

Product Quality
GRI 3: Material
Topics 2021

3-3 Management of material
topicsExcellence in Investment
Service

GRI 3: Material
Topics 2021

3-3 Management of material
topicsCustomer Privacy
Information Security
Intellectual Property Rights

GRI 3: Material
Topics 2021

3-3 Management of material
topicsIntellectual Property Rights

Information Security

Risk Management
GRI 3: Material
Topics 2021

3-3 Management of material
topic

Risk Management
Integrating Climate Risk in
Investment
Climate Change

Incorporation of ESG factors in Investment Banking and Brokerage Activities
GRI 3: Material
Topics 2021

3-3 Management of material
topicsExcellence in Investment
Service
Customer Satisfaction and Responsibility

GRI 3: Material
Topics 2021

81

3-3 Management of material
topicsCSI Sustainability Report 2022

Customer Satisfaction andResponsibility
Risk Management

Explanation

CITIC Securities International Company Limited
18/F, One Paciﬁc Place, 88 Queensway, Hong Kong