2021-2022 Report on Corporate Social Responsibility (CSR) in China's Information and Communications Technology Industry - [Chinese Version PDF]

This report was prepared based on the assessment data, existing CSR issues, and improvement proposals from the 2021-2022 Corporate Social Responsibility Governance Self-Assessment and Assessment (hereinafter referred to as the Assessment).

The assessment covered 243 companies in the information and communications technology (ICT) industry through a comprehensive review process that included online registration, pre-screening, data verification, and score aggregation. The assessment is based on relevant standards such as the "Guidance on Social Responsibility in the Information and Communications Technology Industry" (SJ/T 16000-2016), the "Social Responsibility Management System in the Information and Communications Technology Industry" (SJ/T 11728-2018), and the "Social Responsibility Governance Evaluation Index System in the Information and Communications Technology Industry" (T/CESA 16003-2021).

It focuses on the following 10 themes, focusing on the impact of a company's decisions and activities on the economy, society and the environment:

CSR Governance / Technological Innovation and Application / Employee Rights and Benefits / Safety and Health / Resource Conservation and Environmental Protection / Business Integrity / Supply Chain Cooperation / Consumer Relations / Virtual Community Management / Community Involvement and Development

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This is the fifth development report on CSR in the ICT industry in China. The previous report was released at the "International Forum on Corporate Social Responsibility in the Industrial and Information Technology Sector" and the "2021 China Sustainability Reporting Conference in the Industrial and Information Technology Sector" during the 4th China International Import Expo on November 7, 2021.

Based on the evaluation results, the following characteristics were revealed:

1. Technological innovation and employee development to promote sustainable development of the supply chain

To support the sustainable development of their supply chains, ICT companies are promoting breakthroughs in core technologies in key areas, facilitating the construction of industry ecosystems, and strengthening the training of professional engineers to enhance their risk resilience. 80.66% of the assessed companies continue to expand the training and investment of research talent, 78.19% have formulated sustainable strategies for technological innovation, and 66.26% have applied CSR concepts to the entire life cycle of their products and services.

2. The number of companies implementing CSR is increasing, especially among companies in the "catch-up" stage.

Due to the expansion of the sample size, the number of companies assessed increased from 153 to 243. As a result, the average score for CSR practices decreased slightly from the previous year to 55.59 points, suggesting that many companies are in the "starting stage" of CSR practices. Looking at the number of star ratings, the number of companies with one star or higher increased significantly from the previous year, with the most significant improvement among companies in the "catching up stage."

3. CSR performance among the top 100 ICT competitive companies has improved for three consecutive years

The average score for CSR performance of the Top 100 ICT Competitiveness Companies, a benchmark for the ICT industry, was 60.01 points, an increase for the third consecutive year. This indicates that these companies are moving from the "start-up stage" to the "development stage." Among the 10 themes, "technological innovation and application" performed best, increasing by 3.48 points year-on-year.

4. Strengthening supplier management to improve CSR performance throughout the supply chain

Facing a complex and rapidly changing external environment, nearly 60% of the assessed companies have established communication mechanisms with all parties in their supply chains. By focusing on supplier codes of conduct, they cooperate with upstream and downstream companies to build a community of shared responsibility. Moreover, more than 60% of the top 100 ICT competitive companies have introduced supportive measures for the industrial and supply chains to promote coordinated development upstream and downstream.

5. Contribution to carbon peak and carbon neutrality and various efforts to protect ecosystems

To achieve the carbon peak and carbon neutral goals, 74.49% of the assessed companies have established environmental management systems, 84.66% have implemented pollutant and waste management to promote energy conservation and emission reduction, 61.32% have implemented various initiatives to reduce greenhouse gas emissions, and nearly 30% have taken measures to protect biodiversity and ecosystems.

6. Focus on developing digital R&D talent and demonstrate outstanding performance in protecting employee rights

The overall score of the assessed companies in "Employee Rights" was 78.50%, the highest among the 10 themes. 80.25% of the assessed companies focused on employee career development, and 83.95% enhanced employee happiness through various methods. 74.49% established management systems for the recruitment, evaluation, and motivation of scientific and technological talent, and continued to cultivate innovative talent to promote the sustainable development of the industry.

7. While the number of companies adopting ESG disclosure is increasing, developing a unique ESG strategy in China is not easy.

According to evaluation data, nearly 20% of ICT companies that issue reports and disclose responsibility information have issued ESG reports. To develop an ESG strategy that is in line with China's conditions, it is necessary to constantly combine the standardization, industrialization, and empowerment of ESG with the domestic industrial situation and actual corporate development.

8. Continued contribution to building a harmonious community and implementing zero-COVID policies

The overall score of the assessed companies in "Community Involvement and Development" was 69.04%, ranking fifth among the 10 themes. 80.66% of companies actively participated in public welfare activities such as disaster prevention and relief, 60% continued to implement the Dynamic Zero COVID-19 policy, consolidating key strategic achievements in the fight against COVID-19. Nearly 30% focused on revitalizing rural areas, injecting new vitality into rural development and setting an example for shared prosperity.

9. Focus on promoting gender equality and supporting women's participation in the workplace

The number of assessed companies promoting gender equality has increased compared to the previous year. 181 companies have policies that prohibit gender discrimination in hiring, training, promotion, compensation, and benefits. 130 companies have established regulations and measures to eliminate forced labor and harassment. Some companies have developed management systems to attract and motivate female employees and provide education and training to support their self-development. Through these efforts, we are maximizing women's innovative potential and meeting their needs at every stage of their career development, creating a lasting impetus for the sustainable development of the industrial chain.