B. Management measures and
operation indicators

Part I. Analyses for strategies, risks & opportunities | Part II. Company administration structure
Part III. Participation of stakeholders
| Part IV. Major policies and management syste
Part V. Achievement indicators and keynote report

Achievement indicators and keynote report
 
I. Economic achievement indicators and economic report
i. Management measures
ii. Performance indicators
 
Direct influence
 
Indirect influence
II. Economic achievement indicators and economic report
 
i. Management measures
 
ii. Performance indicators
III. Social achievement indicators and social responsibility report
i. Labor
Management measures
 
Performance indicators
ii. Human rights
Management measures
Performance indicators
iii. Society
Management measures
Performance indicators
iv. Product responsibility
Management measures
Performance indicators
 
III. Social achievement indicators and social responsibility report
i. Labor: being good to employees, establishing harmonious labor and capital relationship | 1. Management measures

Target and execution:
COSCO Group, firmly oriented with scientific development view and talent view, based on its long-term development strategy, will follow the basic laws of human resource development, offer pleasant environment to attract, cultivate and adopt talents, construct a platform for employees to fully show their talents, realize the harmony between employee growth and enterprise development, and build up teams of entrepreneurs, specialty technology talents, operation and management talents, and crews that are adaptive to the group’s requirements on development strategy.

           

Policies and regulations:
COSCO Group has established the Procedure on Human Resource Management and Procedure on Safety Risk Management. All subsidiaries have established settlement solution and implementation details, in a bid to build COSCO Group into a harmonious enterprise.

COSCO has introduced into the OHSA18000 Profession Safety & Health Management Standard and built up its profession safety & health management system. All major second-tier subsidiaries have introduced into the OHSA18000 Profession Safety & Health Management Standard. At the same time, all ship companies of the group have introduced into the ISMC to establish their safety management systems.

Organizational liabilities:
COSCO Group has set up the Safety Management Committee, which is responsible for all-round safety management. The Safety Technology Supervision Sector is responsible for the safety of COSCO. Each subsidiary has set up administrative sector for safety. On ships, captains are the No.1 responsible persons. The Human Resource Department is responsible for management of staff in COSCO Group. The Labor Union of COSCO Group is liable to safety supervision. The safety liability has been stipulated in the work standard and covered in the evaluation for employees.

Training:
Each year COSCO organizes obliged training for administrative executives of the safety management system to update their knowledge. Labor unions at each level offers close cooperation to carry out the campaign of “Safe Production Month”, to provide pertinent mind education for employees and try to build safe production atmosphere, based on the principle of “Safety First, Prevention Focused”. The group has further built up and perfected labor unions’ labor protection network, enhanced training on labor protection supervisors of labor union teams, and therefore boosted the safe production of the enterprise.

COSCO’s promise in safety:
The group will take safety as the lifeline of the enterprise, adopt human orientation conception, create safe and honorable working environment, build up a harmonious enterprise. It will be conscious of all-round risk management, ensure quality, environment, health and safety and information safety, meet requirements of all related parts and law and codes to implement standard operation, implement evaluation for excellent performance, and realize strategic target.

Supervision:
COSCO has established its safety supervisor system to supervise ship companies’ safety management and ISMC operation. Shipping companies have conducted internal auditing for all owned ships on schedule, gathered unqualified problems found in the auditing, given analysis, found pervasive problems and made correction. These companies have tried to find problem through internal auditing, and make initiative self-adjustment and self-perfection, which has ensured the normal effective operation of the system. COSCO Shipping and Qingdao Ocean Shipping have invited crews to join the internal auditing carried out by official organs of COSCO. The official organs implemented the internal auditing for both companies’ ships to ensure the quality. It was also a good training for crews, meanwhile the ship auditing quality has been improved increasingly, the communication between onboard and inland units was enhanced, and the auditing effect was elevated. In 2005 the group has organized two teams view and emulation examination teams for internal auditing to join the internal auditing of COSCO Shipping and Qingdao Ocean Shipping.

The group’s labor unions at various levels have carried out the campaign of “Safety Close to Me, Cost Decrease and Efficiency Increase from Me”. The content of the campaign has been extended, and the achievements of the campaign have been increased. The group has deepened labor unions’ supervision and examination on labor protection. So far the team of labor protection supervisors belonging to the Labor Union system has expanded to 1,634 persons.

Certification:
COSCO’s profession safety & health management system has passed the joint certification of the Det Norske Veritas, the China Classification Society Quality Assurance Ltd and the Occupation Safety Certification Center. With the establishment of the Global Compact and sustainable development management system, the profession safety & health management system has been adjusted and improved. The certification for subsidiaries’ safety management system is as follows:

Unit OHSAS18000 ISMC International Safety and Anti-pollution Rules

COSCON (China Ocean Shipping)

It has established management system and has passed the certifications

It has established management system and has passed the certifications

Guangzhou Ocean Shipping

It has established management system and has passed the certifications

It has established management system and has passed the certifications

COSCO Bulk Carrier

It has established management system and has passed the certifications

It has established management system and has passed the certifications

Qingdao Ocean Shipping

It has established management system and has passed the certifications

It has established management system and has passed the certifications

Dalian Ocean Shipping

It has established management system and has passed the certifications

It has established management system and has passed the certifications

Xiamen Ocean Shipping

It has established management system and has passed the certifications

It has established management system and has passed the certifications

Hong Kong Ocean Shipping

It has established management system and has passed the certifications

It has established management system and has passed the certifications

China COSCO (Singapore)

It has established management system and has passed the certifications

It has established management system and has passed the certifications

COSCO Shipbuilding

It has established management system and has passed the certifications

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COSCO Shipyard

It has established management system and has passed the certifications

---

COSCO Logistics

It has established management system and has passed the certifications

---

China Marine Bunker

It has established management system and has passed the certifications

It has established management system and has passed the certifications

China Ocean Shipping Tally

It has established management system and has passed the certifications

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Boao COSCO Co., Ltd

It is establishing the management system and planning the certifications

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COSCO Human Resources
It hasn’t established management system yet
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COSCO Finance
It hasn’t established management system yet
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COSCO Group, October 2006