Part C: Report of COSCON, a pilot unit of sustainable development of COSCO

Main policies and management system

The Company abides by the state laws, regulations and relating laws and regulation applicable to the Company, complies with the international conventions, the international labor norms and other applicable trade norms committed by the Chinese government, keeps on improving the working conditions and the welfare provided with the staff and comprises the integrated management system together with the quality control system. It is recognized that the social responsibility management is an essential component of the daily operation of the Company and that fulfillment of the social responsibility is one of the prerequisites for the Company to provide the customers with qualified products and perfect service so as to meet the needs of the customers.

The Company formulated corresponding policies in view of the social responsibility and put them into practice to intensify steadily the competitiveness of the Company. Related departments of the company handle their work in accordance with the policies.

Social responsibility policies

•  Standardize all the behaviors in accordance with the norms in the social responsibility system (including salaries, working hours, safety, health, etc.)

•  Comply with all the involved laws and regulations when conducting business activities. All the regulations and rules signed by the Company shall conform to the Occupational health and Safety Control System, the Quality Control System and the Environment Control System.

•  Respect everybody's rights and interest. Any discrimination, forced labor and illegal punitive measures are forbidden.

•  Stick to the behaving norms in light of the social responsibility when communicating with all the customers. Influence on the social responsibility shall be fully considered when suppliers and subcontractor are assessed and selected.

•  Improve the management in accordance with the standard procedures of the social responsibility to standardize the behaviors; accept external inspection and supervision.

•  The staff representatives have the right to communicate or even negotiate with the managers on the social responsibility.

•  All the staff has the right to get and browse the data of the social responsibility system at any time and pose their advice, which shall not be affected by any negative forces.

•  The social responsibility policy of the Company shall be opened to the public. Establish and maintain the procedures relating to communication with the interest counterparts.

•  Never employ prisoners. Never grant jail factories as the subcontractors or suppliers of the Company.

Environment- related policies

• Build up and keep on improving the Environment Control System of PDCA cycle

• Abide by the international conventions, regulations, state laws, ordinances and other requirements relating to environment.

• Carry out technological innovation, lower the consumption of vessel-applied fuels and reduce the consumption of office-applied energy and resources.

• Take effective measures to reduce the discharge to the minimum.

• Prevent the discharged exhaust and wastewater from polluting and damaging the environment of oceans and do the utmost to reduce water pollution.

• Formulate emergency schemes to reduce the environmental risk to the minimum.

• Take active part in the activities related to the environmental protection and keep harmonious relationship with the regional and social counterparts.

• When formulating business development plans and decisions and selecting suppliers, it shall give full consideration to the influence on the environment and give top-priority to the environment.

Management system

In accordance with the International Safety Control Regulations, set up in 1995, the Safety Control System of the Company passed the certification of China Maritime Safety Administration the, the administrative organ of flag country and therefore became the first shipping company that obtained DOC in China. In 1998, in accordance with ISO 9002: 1994 Standard, the Quality Control System was established and passed the certifications of DNV and CSQA. In 2003, in accordance with GB//T24001 1996（idt ISO14001：1996）Norms and Use Guidance of the Environment Control System and GB/T 28001 Norms of the Occupational health and Safety Control System, which passed the certifications of the Environment Control System and the Occupational health and Safety Control System. In 2003, the International Vessel Security Norms was put into practice as well, and thus the International Vessel Security Certificate was issued to the vessels with Chinese registry for the first time. By the end of 2005, the company has established the comprehensive control system integrated with the Quality Control, the Environment Control, the Occupational health and Safety Control and the Global Compact Social Responsibility.

Mission of the company

• Cover all the navigable waters across the world and the main ports of all the countries with the service network made up of the routes of modern container carrying fleets and liners;

• Extend the liner service to thousands of the inland points in the world by multiple inland through-transport and dispatching system to reduce the costs and add more value to the service;

• Expand the intention of the service to the IT field and enable the customers to grasp the information on vessels and cargos house-bound assisted with the global information integrated system and the shipping electronic commercial platform;

• Boost the diplomacy with all the countries in the world, and spread and seek the cultures of peace and development;

• Advocate the mutual prosperity of the world economy by the main routes connecting China and other foreign countries;