II. Report compilation principles and ensuring measures

To ensure the quality, COSCO Group has compiled the report according to the requirements of the GRI 2002 Sustainability Reporting Guideline, taking the requirements of the GRI 2006 Sustainability Reporting Guidelines on conversion into consideration. Written in the form of GRI report, the group has integrated the ten principles of the Global Compact and the special requirements of International Maritime Organization on shipping companies into the report.

All financial data in the report is in compliance with the Accounting Standards for Business Enterprises and the Enterprise Accounting System, and is audited according to the International Standards for the Professional Practice of Internal Auditing.

To ensure the substantiality, integrity, comparison, accuracy and reliability of the report on sustainable development, COSCO Group has established its management system for Global Compact social responsibility and sustainable development, to regulate enterprises’ Global Compact implementation and standardize the compilation of the report on sustainable development. The management system of Global Compact social responsibility is made up of 60 program files, settling the responsibility for sustainable development into every position.

COSCO Group has established the Procedures for Report on Sustainable Development and the Procedures for Internal Auditing. It has established an internal auditing team, providing professional training on auditing of the report on sustainable development for auditors, and carried out annual auditing on the report. At the same time, the group has developed out the COSCO Group’s Data Collection and Processing System for Report on Sustainable Development, to ensure the authenticity, integrity and accuracy of the report data.

To ensure the authenticity and reliability of the whole report, and evaluate the quality of the report, COSCO has submitted the report to the Global Compact Promotion Office of China Enterprise Confederation and the Det Norske Veritas headquartered in Norway. The two organizations will examine and evaluate the report and provide independent auditing report. In addition, COSCO Group asks stakeholders and the media for advice and suggestion, to urge itself to make ceaseless progress.

To know more information about COSCO Group’s influence in economy, environment and society brought about by its strategic objectives and manufacturing operation, please visit http://www.cosco.com.