On April 25, 2024, Linklogis Inc. (09959.HK, “Linklogis”) released
its 2023 Environmental, Social, and Governance (ESG) Report.
Upholding the ESG mission of "Technology empowers the development
of sustainable supply chain finance", Linklogis promotes
sustainable development in environmental protection, social
responsibility, and corporate governance, contributing to the
advancement of the digital economy and the development of the real
economy.
This report marks the third ESG report released by Linklogis
since its listing. Sustainalytics, an international authoritative
ESG rating agency under Morningstar, has rated Linklogis’ ESG
achievements as “low risk” for two consecutive years.
Among 15491 companies rated by Sustainalytics worldwide, Linklogis
ranks 1372nd, ranking in the top 5% within the global software
and service industry and the top 10% among global companies.
Linklogis adheres to the principles of sustainable development,
establishes an ESG governance framework,
identifies material issues of supply chain
finance technology, strengthens internal and external ESG training,
continuously improves its level of sustainable development,
and applies the ESG philosophy in practices,
working with industry partners to create comprehensive economic,
social, and environmental value.
Empowering SMEs, and
Shouldering Social Responsibility through
Technology
Linklogis is committed to fulfilling corporate social
responsibility through technological innovation, promoting
inclusive finance, and driving society towards sustainable
development. In the field of supply chain finance, Linklogis
utilizes advanced technological infrastructure
to customize solutions for over 250,000 small and
medium-sized enterprises (SMEs), solving their financing
difficulties, reducing financing costs, and facilitating
sustainable development. For example, the supply chain finance
platform “Qilu eChain", initiated by Shandong Institutes of
Industrial Technology and jointly developed by Financial Technology
Institute under Shandong Institutes of Industrial Technology and
Linklogis, provides efficient financing services through digital
means, optimizing financing processes to better support the growth
of SMEs in Shandong.
Besides, Linklogis pays attention to the development of
live-streaming e-commerce, innovating business to provide
professional financing solutions for small and medium-sized
e-commerce merchants. Through technologies such
as AI and big data, Linklogis optimizes
financial service models, utilizes digital and
intelligent methods to integrate traditional offline data,
enhances risk control management, and helps merchants improve cash
flow and accelerate payment collection.
In addition, Linklogis actively responds to national policies,
promoting rural revitalization and sustainable development. In
2023, Linklogis made significant investments in green finance,
renewable energy, and served numerous high-tech enterprises.
Throughout the year, the assets of transactions that Linklogis
served related to sustainable supply chains (including renewable
energy, rural revitalization, environmental protection,
intellectual property, etc.) reached RMB19.2 billion.
Linklogis not only promotes the digital transformation of supply
chain finance but also actively leads industry forums and standard
setting, such as organizing the Industry Finance Treasury
Forum to promote industry exchanges and cooperation,
and initiating the drafting of the The White Paper on
Cross-border Data Circulation Compliance and Technological
Application (2023) to provide professional insights and support in
the field of global data circulation.
Developing AI, Technological
Innovation Facilitates Green Management
Continuous technology advancement is a powerful driver for
achieving China’s "carbon peaking and carbon neutrality"
goals. Linklogis delves
deeply into the technology
innovation of supply chain finance, using technological
means to help reduce carbon emissions and effectively promote
environmental protection. Through the widespread application of
technology, Linklogis helps itself, customers, and
partners achieve significant energy-saving and emission
reduction.
Advanced technology products and services are key to
driving digital and paperless operations. In
2023, Linklogis actively promoted green development
through digitization and intelligent technology. In the field of
supply chain finance, by achieving full- online and paperless
operations, Linklogis has already reduced carbon dioxide
emissions by 13,000 tonnes. Additionally, The paperless
processes and ABS Cloud services of Linklogis have
also saved a considerable amount of paper
for its partners, reducing approximately 6,000 tonnes of
carbon dioxide emissions.
In terms of technological
innovation, Linklogis developed ESG Green Solution,
which
combines Linklogis’ existing Multi-tier Transfer Cloud
with the ESG intelligent green platform Bee-Clean, so as
to comprehensively manage and track carbon footprints and
emission data. Utilizing artificial intelligence, blockchain, edge
computing, and privacy computing
technologies, Linklogis’ ESG Green Solution not only
optimizes data management in the green finance market but
also improves incentives for manufacturing enterprises to
participate in the development of carbon neutrality.
The SCeChain supply chain financing solution jointly developed
by Linklogis and Standard Chartered Bank adopts an
innovative “dual-chain integration” model of supply chain
and blockchain. The platform introduced ESG evaluation
standards from third-party rating agencies to provide a set of
comprehensive ESG assessment solutions and green financing
incentive mechanisms. This solution has helped Yibin Grace Group
and its subsidiaries obtain preferential financial support by
optimizing supply chain management, achieving a win-win solution
for environment and business interests.
Through the comprehensive application of
technologies, Linklogis not only promotes the digital
upgrade of customers and partners but also greatly improves the
efficiency and transparency of financing,
protects the security of customer data, reduces
unnecessary resource consumption, and
demonstrates Linklogis’ firm commitment to green and
sustainable development.
Valuing Talent, High Standards
of Governance Strengthens Corporate Operations
Linklogis has formulated an ESG management system, with a
three-level management structure consisting of the board of
directors, management, and working groups. Responsibilities and
positions at each level are clearly defined, forming an efficient
working mechanism. Additionally,
ESG materiality matrix consisting of four
categories and ESG key performance tables are
illustrated based on 27 material issues, effectively
promoting the standardization and professionalism
of Linklogis’ ESG management.
Linklogis adheres to the pursuit of excellent corporate
governance standards, establishing a high-quality corporate
governance structure and sound policies for risk
prevention, business ethics, anti-corruption, and anti-unfair
competition to ensure compliance with company
operations. Linklogis strictly complies with national
regulatory requirements for compliance, constructing a secure
technological system from multiple dimensions such as information
security management, information security assurance, information
security certification, and risk management to ensure the data and
privacy security of customers and partners.
Linklogis always prioritizes the privacy and interests of
customers, actively exploring privacy computing
technology, and building a multi-party secure computing platform.
Taking the Bee Security Privacy-preserving Computation
Platform independently developed
by Linklogis as an
example, the platform is a data security
collaboration platform developed based on multi-party secure
computing, federated learning, blockchain and
machine learning technologies, aiming to solve the problems of
data silos, data rights confirmation, data privacy protection for
all parties in the supply chain industry, and achieve the security
goal of “making data usable but
invisible”, protecting customer data, and ensuring information
security. In 2023, the customer satisfaction rate of
Linklogis reached 98%.
Linklogis regards talent as the company's most valuable asset
and is committed to creating an open, equal, and inclusive
workplace environment, continuously attracting diversified
talents, building a diverse talent team, and strengthening
organizational structure, employee training, female welfare,
association freedom, and anti-discrimination. As of the end of
2023, Linklogis has a total of 914 employees, with 390
female employees, accounting for 42.7%.
To help employees gain lasting competitiveness and long-term
development, Linklogis has designed a comprehensive and
diversified growth training system based on employee needs,
achieving full coverage of trainees. In 2023, the average training
hours per employee at Linklogis were 42.4 hours, with a
training coverage rate of 100%. The group has established
diversified communication and feedback channels, encouraging
employees to express their opinions actively, communicate
face-to-face with executives, promote personal growth and career
development, and regularly organize various health educational
activities, providing solid guarantees for the physical and mental
health of employees.
Song Qun, the founder, chairman and CEO of Linklogis, said,
“Linklogis is committed to becoming an industry leader
and pioneer in promoting sustainable development,
contributing technological strength to the development of
sustainable supply chain finance. Linklogis has always
placed ESG and sustainable development in an important position,
continuously exploring more efficient and effective sustainable
supply chain finance technology models, and integrating
them into specific business strategies. Besides, we hope to
join hands with outstanding industry partners with common ideas
through the power of technology, jointly building a long-term
platform to achieve multiple win-win situation,
creating long-term value for employees, shareholders, and society,
and injecting continuous sustainable development momentum into the
supply chain."
Gloria Zhou
zhoushiqian@linklogis.com
Gloria Zhou
zhoushiqian at linklogis.com