Plans and procedures related to economy, environment and social responsibility performance

COSCO Group has established relative plans and procedures for modern enterprise management system according to the improvement of economy, environment and social performance. Based on the analysis for six functions, the corporation has set up its host control system, with each function having host programs and support programs. A total of 14 host programs and 30 support programs have been available. Ten programs are provided for the support system, which is based on the four basic activities of writing manner, conference, public affair and communication, and five types of resources including personnel, equipment, capital, information and relation. The corporation has set up 6 programs for the internal control system, to ensure the continuous improvement of working style and efficiency as well as the management system. To ensure COSCO Group’s establishment of efficient implementation of its strategy planning, the COSCO has established Procedure for Development Strategy and Planning Management, Procedure for Director Business Management, Procedure on Management of Shareholder Right Exertion, Procedure for Policy Making of President Official Business Meeting, etc.

To guarantee the effective implementation of the group’s important investment projects, scientific research projects and management innovation projects, and the continuous promotion of the group’s achievements, COSCO has established the Procedure on Policy Making Solution Design & Control, Procedure on Law Risk Management, Procedure for Investment Management, Procedure on Capital Management, Procedure on Ship Purchase and Selling Management, Procedure on Transportation Management, Procedure on Science and Technology Management, etc.

The group carries extensive internal communication and training, and has established the Procedure on Training Management, Procedure on Information Communication and Disclosure, Procedure on Related Parts Relation Management, Procedure on Management for Intelligence, Research Achievements, Information Integration and Share Management, and so on.

COSCO Group takes active part in SASAC’s establishment for national enterprises’ achievement assessment indicators, and organizes its subsidiaries to study and establish the group’s achievement assessment indicator system construction for subsidiaries. The group has hence established the Procedure on Management for Operating Achievements Assessment. Furthermore, the Procedure for Supervision & Monitoring has been established to monitor the achievement.

While abiding the law to organize external auditing, the group is trying to improve its internal auditing level. The Procedure on Financial Management regulates the requirements to accept the organization of external auditing, while the Procedure on Internal Auditing Work is the standard to strictly carry out internal auditing.