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招港B:2025年自然相关财务影响报告(英文版)

2025

Nature-related Financial Impact Report

图1

Contents

About this Report....2

LEAP Methodology Description....3

I. Governance....7

(1) Nature-related Governance Framework....7

(2) Stakeholder Engagement....9

II. Strategy....12

(1) Positioning and Interfaces with Nature....12

(2) Assessment of Nature-related Dependencies and Impacts....16

(3) Management of Nature-Related Risks and Opportunities....23

(4) Ecosystem and Biodiversity Conservation Strategy....38

III. Risk and Impact Management....45

(1) Management of nature-related dependencies, impacts, risks and opportunities....45

(2) Integration of nature-related risks into corporate risk management...45

IV. Metrics and Targets....47

Appendix: TNFD Index Table....55

About this Report

This report is the first Nature-related Financial Impact Report (hereinafter referred to as the "Report") published by China Merchants Port Group Co., Ltd. (hereinafter referred to as "CMPort", the "Company" and "we"). Adhering to the principles of objectivity, standardisation and transparency, the Report systematically discloses the Company's nature-related strategic objectives, initiatives and performance outcomes for the year 2025, addressing stakeholder concerns.

Reporting Standards

The Report discloses information in accordance with the "Recommendations of the on Nature-related Financial Disclosures <sup>"</sup> published by the Taskforce on Nature-related Financial Disclosures (hereinafter referred to as the "TNFD") in September 2023. Additionally, the Company has made reference to the Guidance on the Identification and Assessment of Nature-related Issues: The LEAP Approach 1 1 (hereinafter referred to as the "LEAP") to disclose information regarding impacts on and dependencies of natural capital, as well as associated risks and opportunities.

Scope of the Report

The scope of the Report covers China Merchants Port Group Co., Ltd. and its subsidiaries. Unless otherwise stated, the information disclosed in the Report is consistent with the consolidated financial statements of CMPort (001872/201872.SZ). To enhance the comparability and forward-looking nature of the report, certain content has been expanded. The reporting period covered by the Report is from 1 January 2025 to 31 December 2025 (hereinafter referred to as the "Reporting Period").

Sources of Information

The information contained in the Report is derived from the Company's operational statistics, internal documents, financial reports, policy statements and other publicly available documents. Species data and data relating to protected areas are sourced from domestic and international third-party databases; such data will be noted where applicable. Unless otherwise stated, all monetary amounts in the Report are denominated in RMB.

Report Availability

The Report is published in both Simplified Chinese and English. The electronic version of the Report has been uploaded to the Company's website (www.cmp1872.com) for public access and download. In case of any discrepancies between the two versions, the Simplified Chinese version shall prevail.

LEAP Methodology Description

The Company conducts nature-related impacts and dependencies analysis in accordance with the TNFD LEAP approach to identify and address nature-related risks and opportunities.

Table 1 Key Elements and Process of the TNFD LEAP Approach

Locate (L)Interface with NatureEvaluate (E)Dependencies and ImpactsAssess (A)Risks and OpportunitiesPrepare (P)Response and Reporting
L1 Span of the business model and value chaina. Define the company's industry, business activities and geographical scope of operations.b. Identify the company's position within the value chain and the business activities upstream and downstream of the value chain.E1 Identification of Environmental Assets, Ecosystem Services and Impact Driversa. Identify the environmental assets, ecosystem services and impact drivers associated with the company's industry and business activities.A1 Risk and Opportunity Identificationa. Identify the company's Corresponding risks and opportunities based on natural Related dependencies and impacts.P1 Strategy and resource allocation plansa. The company's decisions regarding risk management, strategy and resource allocation based on the results of the analysis.
L2 Dependency and Impact Screeninga. Screen for activities within the company's industry, value chain and direct operations that involve moderate and high levels of inherentE2 Identification of Dependencies and Impactsa. Identification of the company's dependencies on and impacts on nature.A2 Adjustment of Existing Risk Mitigation and Risk and Opportunity Managementa. Describe the risk mitigation measures and risk and opportunity management processes and elements alreadyP2 Target Setting and Performance Managementa. The company sets nature-related targets and defines metrics to measure them.
dependence on and impact on nature.implemented by the company.b. Describe the company's adjustments to risk and opportunity.management procedures and related elements.
L3: Interface with naturea. Identify sectors, value chains and direct operational sites with moderate to high potential dependencies on and impacts on nature.b. Identify the key biotic communities and specific ecosystems.E3 Dependency and Impact Measurementa. Measure the scale and scope of the company's dependence on nature.b. Measure the extent of the company's positive and negative impacts on nature.A3 Risk and Opportunity Measurement and Prioritisationa. Assess the priority of the company's relevant risks and opportunities.P3 Reportinga. Describe the company's approach to disclosing information in accordance with the TNFD recommendations.
L4 Interfaces with sensitive locationsa. Describe the company's ecologically sensitive sites in activities with moderate and high dependence on, and impact on, the value chain and industry.b. Describe the ecologically sensitive areas in which the company's direct operations are located.E4 Impact materiality assessmenta. Assess the company's material impacts.A4 Risk and opportunity materiality assessmenta. Assess the materiality of the company's relevant risks and opportunities.P4 Presentationa. Describe the channels through which the company discloses and presents nature-related disclosures.
Supports preparation of the TNFD $^2$ recommended disclosures
Strategy DStrategy AStrategy DRisk and Impact Management A (i and ii)Risk and Impact Management BMetrics and Targets BStrategy AStrategy CStrategy DRisk and Impact Management A (i and ii)Risk and Impact Management BRisk and Impact Management CRisks and Targets ARisks and Targets BGovernance AGovernance BGovernance CStrategy BStrategy CMetrics and Targets C

I. Governance

(1) Nature-related Governance Framework

CMPort has established a three-tier ESG governance framework comprising the "decision-making, management and execution levels", with clearly defined responsibilities at each level to ensure unified leadership, decision-making and implementation of all sustainability initiatives. To strengthen ecosystem and biodiversity conservation efforts, CMPort further clarified the management responsibilities for nature-related topics at each level of the ESG governance framework in 2025.

图2

Decision-making Level

The Board of Directors serves as the highest supervisory and decision-making body for nature-related topics. It oversees the assessment of impacts, risks and opportunities associated with the management of nature-related topics, integrates sustainability-related impacts, risks and opportunities into the Company's development strategy, business strategy, major transaction decisions and risk management considerations, and regularly receives reports from the Strategy and Sustainability Committee on the management of nature-related topics to ensure that management strategies are effectively implemented.

The Strategy and Sustainability Committee is a specialized committee established under the Board of Directors, responsible for supervising, reviewing, deciding upon, and providing guidance on the Company's management strategies, objectives, and action plans related to nature-related topics. The Committee reviews the annual assessment of nature-related impacts, risks, and opportunities, reports significant nature-related impacts, risks, and opportunities to the Board of Directors, and oversees the implementation of nature-related topics management.

Management Level

The ESG Leadership Team is responsible for organising and leading the formulation of management strategies for nature-related topics, and for guiding the management and implementation of key topics such as ecosystems and biodiversity. The Company reviews the development trends in nature-related topics, and identifies, assesses and consolidates sustainability-related impacts, risks and opportunities.

Execution Level

The ESG Working Team, acting as the primary body responsible for coordinating and driving the implementation of ESG initiatives, is tasked with defining responsibilities for managing nature-related issues, establishing nature-related management objectives, planning and executing work, and ensuring that nature-related issue management efforts are effectively implemented.

Headquarters departments participate in the formulation of nature-related management objectives, regularly assess nature-related impacts, risks and opportunities, identify significant impacts, risks and opportunities, plan annual routine work and public welfare projects, and drive their implementation by subsidiaries.

Subsidiaries, in accordance with the headquarters' planning requirements for nature-related topic management, identify and assess nature-related impacts, risks and opportunities; establish nature-related issue management systems; implement work related to ecosystem and biodiversity conservation; continuously advance local ecological conservation initiatives; and consistently address the concerns of internal and external stakeholders.

(2) Stakeholder Engagement

The support of stakeholders is crucial to the Company's sustainable development. CMPort continues to pay attention to the expectations of stakeholders, including local communities and residents, and has established a multi-channel, diversified communication and feedback mechanism to maintain active and effective communication with stakeholders. By gaining a thorough understanding of their concerns, views and suggestions, we work together to build a sustainable ecosystem.

Table 1 CMPort's Stakeholder Communication and Engagement

Stakeholder categoryCommunication and channelsExpectations and appealsCMPort's response
CustomersPublic information disclosureCustomer visitsRegular customer meetingsResponses to and handling of customer's feedbackCustomer satisfaction surveyProvide quality serviceSafeguard of information securityEnhanced risk managementInnovate service methods, optimise service procedures, diversify service formats, and respond to customer appeals in a timely and efficient mannerImprove information security protection systems to protect customer data privacyIdentify potential risks and implement effective risk management
Shareholders and InvestorsPublic information disclosureShareholders' meetingsPerformance briefingsResearch and exchange activitiesRegular working meetingsTransparent financial information disclosureGood operating resultsAsset preservation and value appreciationEnhanced risk managementDisclosure of interim and annual financial reportsMaintain sustainable growth in business operation and profitabilityIdentify quality assets and enhance the management and operation of existing assetsIdentify potential risks and strengthenrisk control
Creditors·Public information disclosure·Irregular work meetings·Good operating cash flow·Project financing market opportunities·Maintain steady operations and performance growth·Innovative financial cooperation models
Government and regulatory authorities·Public information disclosure·Industry exchange activities·Daily communication and reports·Compliant operation·Tax compliance·Supporting local economic development·Protecting the local ecological environment·Strictly comply with laws and regulations in operating activities·Tax compliance·Create local employment opportunities·Actively fulfill corporate social responsibilities
Employees·Public information disclosure·Daily communication and meetings·Regular training·Internal feedback channels·Good development and promotion opportunities·Secure basic employee rights·Work-life balance·Provide competitive salaries and benefits, clarify promotion mechanisms and pathways, and offer professional training·Safeguard employees' legal rights and establish whistleblower protection mechanisms·Create a diverse, equal, inclusive, healthy and safe work environment·Organize employee caring activities such as holiday events
Suppliers and partners·Public information disclosure·Project cooperation·Regular meetings·Daily communication·Win-Win Cooperation·Transparent procurement and honest cooperation·Improve and establish cooperation mechanisms·Build a sustainable supply chain
Public welfare organizations·Public information disclosure·Cooperation on public welfare events·Reduce the negative impact caused by operating activities·Collaborate on charitable actions·Strengthen identification of external risks of operating activities to avoid and reduce negative impacts·Cooperate with local public welfare organizations to carry out tailored public welfare activities
Communities·Public information disclosure·Charitable events·Volunteering services·Support local community development·Conduct public welfare volunteering services·Promote local economic and social development through investment and operating activities·Collaborate with local communities and public service organizations to conduct context-specific charitable activities
Media·Public information disclosure·Industry exchange activities·External events of the Company·Reduce the negative impact caused by operating activities·Industry influence·Business performance and sustainability performance·Actively respond to media concerns and conduct media interviews·Improve the Company's business performance and sustainability influence in the industry·Invite media to participate in the Company's external events

II. Strategy

(1) Positioning and Interfaces with Nature

1. Identification of Business Activities

CMPort is a core enterprise of the transportation and logistics sector under China Merchants Group and an important implementation entity for the Group's goal of building a "world-leading enterprise". The Company currently operates and invests in 51 ports and 26 countries and regions globally. In accordance with the WWF Biodiversity Risk Filter (WWF BRF) industry classification<sup>3</sup>, the Company identifies the industry distribution across the upstream, midstream and downstream segments of its value chain, thereby clarifying the business activities within its value chain.

Table 2 Industry Distribution and Business Activities of CMPort within the Value Chain

Value Chain SegmentWWF BRF Industry ClassificationBusiness Activities
UpstreamElectricity generation - hydroelectricElectricity supply from hydropower
Electricity generation - solar and windElectricity supply from solar and wind power
Oil, natural gas and consumable fuelsOil, natural gas and other energy supplies
Manufacture of motor vehicles, electrical equipment and machineryManufacture of equipment such as cranes, trailers, tractors, hoists, forklift trucks and stackers
MidstreamTransport $Services^4$ - Port OperationsLoading, unloading, stacking, warehousing and ancillary services for containers and bulk cargo
Land development and constructionNew construction, refurbishment and expansion of ports
DownstreamTransport Services - MaritimeServicesMaritime transport services forcontainers and bulk cargoLogistics and supply chain services

2. Ecologically Sensitive Sites<sup>5</sup> Identification and Analysis

During the current year, CMPort conducted an identification of the distribution of key species and ecologically sensitive locations for its subsidiaries. Taking into account the actual circumstances of the subsidiaries and data availability, we defined the data assessment scope with the location of the subsidiary as the centre and radii of 2 km, 5 km, and 10 km, respectively. Due to limited availability of data on species distribution and ecologically sensitive areas overseas, the data assessment scope for overseas subsidiaries this year defined the potential impact area with a radius of 50 km. In the future, the Company plans to further narrow the assessment scope to improve data accuracy.

Table 3 CMPort's Subsidiaries

No.Name of SubsidiaryAbbreviation of SubsidiaryCountry and Region
1China Merchants Port (South China) Management CenterChina Merchants Port (South China) Management CenterGuangdong Province, China
2China Merchants Port (South China) Bulk Cargo Management CenterChina Merchants Port (South China) Bulk Cargo Management CenterGuangdong Province, China
3Zhanjiang Port (Company) Co., Ltd.Zhanjiang PortGuangdong Province, China
4Shantou China Merchants Port Company Co., Ltd.Shantou PortGuangdong Province, China
5Zhangzhou China Merchants Port Co., Ltd.Zhangzhou PortFujian Province, China
6Zhangzhou China Merchants Xiamen Port Affairs Co., Ltd.Xia Men Bay TerminalsFujian Province, China
7China Merchants Bonded Logistics Co., Ltd.CMBLGuangdong Province, China
8China Merchants International Terminal (Qingdao) Company Ltd.CMITQShandong Province, China
9China Merchants International Technology Co., LimitedCMITGuangdong Province, China
10Shenzhen Haiqin Engineering Management Co., Ltd.Haiqin CompanyGuangdong Province, China
11Shenzhen China MerchantsQianhaiwan Property CompanyLimitedQianhaiwan PropertyGuangdong Province,China
12China Merchants ContainerServices LimitedCMCSHong Kong SpecialAdministrativeRegion, China
13Colombo International ContainerTerminals LimitedCICTColombo, Sri Lanka
14Hambantota International PortCompany (Private) LimitedHIPGHambantota, Sri Lanka
15TCP Participações S.A.TCPParaná, Brazil
16Lome Container Terminal S.A.LCTLomé, Togo
17PT Nusantara Pelabuhan Handal TbkNPHJakarta, Indonesia

(1) Distribution of Key Species

Self-Operational areas (within a 2 km radius): With the exception of Zhangzhou Port, no species classified as Critically Endangered, Endangered or Vulnerable under the International Union for Conservation of Nature Red List (IUCN) or the Chinese Red List of Biodiversity (RCB) within a 2 km radius of the 11 subsidiaries in China. 1 species classified as Vulnerable by the IUCN—Covus Torquatus — inhabits the 2 km radius of Zhangzhou Port. Within a 2 km radius of the 12 subsidiaries in China, there are a total of<sup>6</sup> 39 species of Class II protected animals and 249 species of "three benefit" animals<sup>7</sup> as defined by the Wi ldl ife Protection Law of the People's Republic of China.

Self-operational and surrounding areas (within a 5 km radius): Our 12 subsidiaries in China are home to a total of 12 endangered species and 13 vulnerable species as defined by the IUCN within a 5 km radius, 9 species classified as Endangered and 12 species classified as Vulnerable under the RCB, as well as 12 Class I animals, 148 Class II animals and 1,005 "three benefit" animals as defined by the Wi ldl ife Protection Law of the Peo<sub>p</sub>le <sup>'</sup>s Re<sub>p</sub>ubl ic of China.

Self-operational and adjacent areas (within a 10 km radius): The 12 subsidiaries in Mainland China have, within a 10-kilometer radius, a cumulative total of 1 Critically Endangered species, 31 Endangered species, and 53 Vulnerable species as defined by the IUCN, 24 Endangered species and 69 Vulnerable species as defined by the RCB, as well as 51 Class I protected animals, 294 Class II protected animals, and 2,028 species of "three benefit" animals as defined by the Wi ldl ife Law of the Peo<sub>p</sub>le <sup>'</sup>s Re<sub>p</sub>ubl ic of China. Among them, CMITQ has the Critically Endangered species Emberiza Aureola, as defined by the IUCN, within a 10-kilometer radius.

Overseas potential impact areas (within a 50 km radius): Within a 50 km radius of the 5 overseas subsidiaries, there is a cumulative total of 147 critically endangered species, 700 endangered species and 544 vulnerable species as defined by the IUCN.

Table 4 Distribution Data of Key Species at CMPort's Subsidiaries

Operational Site CategoryRadiusIUCN Endangered CategoryRCB Endangered CategorySpecies protected under the Wildlife Protection Law of the People's Republic of China
Critically EndangeredEndangeredVulnerableCritically EndangeredEndangeredVulnerableClass IClass IIThree Benefit
Subsidiaries Within China2km001000039249
5km012130912121481,005
10km1315302469512942,028
Overseas subsidiaries50km147700544——————

(2) Distribution of ecologically sensitive areas

There are no national parks or World Database on Protected Areas (WDPA) sites within a 2 km, 5 km or 10 km radius of our 12 subsidiaries in China. Within a 2 km radius, there is 1 nature park—the Jiulongjiang Estuary Provincial Marine

Nature Park in Zhangzhou, Fujian—and 1 Key Biodiversity Area (KBA)—the Qingdao –Rizhao Coastal Wetlands and Islands—with a total of 1 nature reserve within a 5 km radius—the Xiamen National Nature Reserve for Rare Marine Species in Fujian—along with 7 nature parks and 3 KBAs; within a 10 km radius, there are a total of 9 nature reserves, 14 nature parks, 3 Wetlands of International Importance and 9 KBAs. Within a 50 km radius of the five overseas subsidiaries, there are a total of 25 KBAs and 130 WDPAs.

Table 5 Distribution of Ecologically Sensitive Areas of CMPort

Operational Site CategoryRadiusNational ParksNature ReservesNature ParksWorld Natural HeritageWetlands of International ImportanceKey Biodiversity Areas (KBA)World Network of Protected Areas (WDPA)
Subsidiaries in China2km0010010
5km0170030
10km09140390
Operational Site CategoryRadiusWorld Key Biodiversity Areas (KBA)World Database on Protected Areas (WDPA)
National Protecited AreasEU Natura 2000 Ecological NetworkMarine Conservation AreaWorld Heritage SiteRamsar WetlandsMan and the Biosphere ReservesASEAN Heritage Park
Overseas Subsidiaries50 km25121000540

(2) Assessment of Nature-related Dependencies and

Impacts

Based on the identification and analysis of the Company's value chain business footprint, we have selected 8 relevant sectors within the value chain and utilized the WWF BRF to assess nature-related dependencies and impacts.

Table 6 Assessment of Nature-Related Dependencies and Impacts Across Industries in the Value Chain of CMPort

WWF BRF IndicatorsImpact/ DependencyUpstreamMidstreamDownstream
Electricity generation - hydroelectricElectricity generation - solar and windOil, natural gas and consumable fuelsAutomotive, Electrical Equipment and Machinery ManufacturingTransport services - Port operationsLand Development and ConstructionTransport services - maritime transport servicesTransport services - logistics and supply chain services
Physical risks
1 Provisioning Services
1.1Water resource availabilityDependency
1.2Forest productivity and distance from marketsDependency
1.3Availability of limited wildlife resourcesDependency
1.4Availability of limited marine fish resourcesDependency
2. Regulatory and supporting services - enabling services
2.1Soil conditionsDependency
2.2Water resourcesDependency
2.3Air qualityDependency
2.4EcosystemconditionsDependency
2.5PollinationDependency
3. Regulatory services - mitigation
3.1LandslideDependency
3.2Wildfire disastersDependency
3.3Plant/Forest /Aquatic pests and diseasesDependency
3.4Herbicide resistanceDependency
3.5Extreme heatDependency
3.6Tropical cyclonesDependency
4. Cultural services
4.1Natural and cultural resourcesDependency
5. Pressures on biodiversity
5.1Changes in land, freshwater and marine useImpact
5.2Loss of forest canopyImpact
5.3Invasive speciesImpact
5.4PollutionImpact
Reputational risk
6. Environmental factors
6.1Protected areas/Conservation areasImpact
6.2Key biodiversity areasImpact
6.3Other important designated areasImpact
6.4Ecosystem statusImpact
6.5Rarity within the rangeImpact
7. Socio-economic factors
7.1Local residents; local communities Land and territoryImpact
7.2Resource scarcity: food - water resources - airImpact
7.3Labor/Human rightsImpact
7.4Financial inequalityImpact
8. Additional Reputational Factors
8.1Media censorshipDependency
8.2Political situationDependency
8.3Internationally significant sitesDependency
8.4Risk provisionDependency

1. Nature-related dependencies and impacts of upstream industry activities The various energy production activities covered within the upstream segment of the Company's value chain rely on ecosystem provisioning, regulating and maintenance services. At the same time, such activities have a significant impact on nature and may entail substantial reputational risks.

Hydropower generation relies heavily on the water supply provided by ecosystems to ensure sufficient water volume to drive power generation facilities. Hydropower generation results in a significant increase in the area of open freshwater bodies upstream within a river basin, while reducing the extent of freshwater habitats downstream. The construction of hydropower stations alters water flow and landforms. Reduced sediment supply to downstream river channels may increase the likelihood of soil erosion. As the construction of hydropower facilities involves large-scale alterations to landforms and hydrological conditions, it may have a significant impact on ecologically sensitive areas near the site and on the livelihoods and daily lives of local communities, thereby leading to a high reputational risk.

Solar and wind energy rely moderately on ecosystem provisioning, regulating and supporting services, and may have certain impact on ecosystems. The construction of solar and wind power facilities generates substantial quantities of solid waste, some of which (such as silicon trichloride and silicon tetrachloride discarded during polysilicon production) are classified as hazardous waste. The improper disposal of such waste causes severe environmental pollution. The construction of wind power facilities may result in the destruction of natural habitats.

The use of fossil fuels such as oil heavily depends on natural resource supply and regulation services, and has a significant impact on the ecological environment. Fossil fuel production relies on the water supply services provided by ecosystems to ensure sufficient water for cooling systems, industrial cleaning, daily operations and fire control. Fossil fuel production requires large extensive land for infrastructure development (such as oil wells, canals and roads, and waste storage and disposal facilities), which may lead to habitat loss, decreased vegetation and land degradation. The production and use of fossil fuels emits greenhouse gases (such as carbon dioxide) and non-greenhouse gases (such as volatile organic compounds, nitrogen oxides, sulfur oxides, particulate matter and toluene) into the environment, contributing to global climate change and polluting local ecosystems. The production and use of fossil fuels are prone to causing habitat destruction. Combined with the health and safety risks arising from improper operations, this may trigger significant public and media concern regarding adverse environmental impacts and occupational health and safety.

Beyond energy utilization activities, a key component of the upstream value chain in which the Company operates is mechanical manufacturing. The installation of industrial machinery and equipment relies on water supply services provided by ecosystems to ensure adequate water quantity and quality for cleaning the installation sites. Mobile transport equipment (such as trailers) relies on natural rubber for tires, creating a dependency on limited plant resources. The production of industrial machinery and equipment generates significant solid waste, while the operation of such equipment releases air pollutants (such as particulate matter and volatile organic compounds); if not managed properly, this may result in environmental pollution and damage.

2. Nature-related dependencies and impacts of midstream industry activities The Company's principal business consists of port operations, which are situated in the midstream of the value chain. Port operations rely on the regulatory services of ecosystems to maintain normal operations, mitigating damage to infrastructure caused by natural disasters (such as typhoons, floods, wildfires and strong winds) through the regulation of climate, rainfall, water flow and storms.

Port operations may have a significant impact on the surrounding environment. The construction of ports requires the use of large tracts of land, altering the existing land conditions, which may destroy habitats and reduce vegetation cover, thereby significantly impacting the local environment. Heavy machinery used in port operations may release toxic air pollutants, causing air pollution, while the transport and handling processes generate large quantities of solid waste, which may also significantly impact on the environment. Port site selection, construction and dredging activities may lead to coastal erosion, seabed alterations and habitat destruction, while the continuous low-frequency noise and light pollution generated by port operations may affect the quality of life of local residents. The aforementioned activities may impact wildlife habitats or local residential areas, thereby giving rise to certain reputational risks. The Company's business activities also involve land development and construction projects in the vicinity of port areas. Construction projects in the vicinity of port areas rely on the ecosystem's timber supply services, whilst also requiring the ecosystem to provide regulating and supporting services to reduce the likelihood of extreme heat events and mitigate the impact of dust and noise generated by construction works. Construction activities result in land surface alterations and vegetation loss, placing significant pressure on ecosystems within construction zones and potentially impacting the normal business operations of local communities.

3. Nature-related dependencies and impacts of downstream industry activities The downstream industry activities within the Company's value chain primarily consist of maritime transport services and logistics and supply chain services.

Maritime transport activities depend on ecosystem water supply services to ensure the water required for maritime transport operations, as well as for the cleaning and maintenance of vessels and related infrastructure. Maritime transport activities also depend on ecosystem regulating services that regulate the global and local climate, thereby reducing the frequency and severity of major extreme weather events that could damage vessels and disrupt shipping operations. In respect of logistics and supply chain services, warehousing and land transport activities rely on the ecosystem's soil and water conservation functions to provide stable foundations, control soil erosion, and ensure the structural integrity of warehouse buildings and transport infrastructure. Land transport activities rely on the ecosystem's regulation of global climate and rainfall patterns to prevent transport disruptions caused by extreme weather and to safeguard transport continuity.

Maritime transport activities may place significant pressure on ecosystems. They can alter hydrodynamic characteristics through ship wakes, thereby affecting the movement patterns of marine life and habitats in the affected waters. Given the current energy sources used by most vessels, maritime transport releases substantial quantities of greenhouse gases and non-greenhouse gases (such as carbon monoxide, sulphur dioxide, particulate matter and other air pollutants), and the continued use of fossil fuels when docking exacerbates these emissions. Maritime transport activities may generate toxic pollutants through the use of chemicals for ship cleaning, as well as fuel or oil spills from engines and cargo, and leaching from anti-fouling paint. Ballast water from ships may serve as a conduit for the unintentional introduction of species into estuaries or nearshore marine systems, potentially leading to the invasion of non-native species.

In respect of logistics and supply chain services, both warehousing and road transport activities generate greenhouse gas emissions, as well as noise and dust pollution. Road transport, in particular, contributes to air pollution due to fuel combustion and the use of chemicals, emitting gaseous pollutants such as carbon monoxide, hydrocarbons, nitrogen oxides, sulphur dioxide, particulate matter and volatile organic compounds. Furthermore, asphalt road surfaces may emit volatile organic compounds when exposed to intense sunlight and high temperatures. The infrastructure required to support warehousing and road transport activities may alter natural habitats, creating barriers to animal movement and migration or causing wildlife collisions, thereby impacting local biodiversity.

(3) Management of Nature-Related Risks and

Opportunities

To further quantify the nature-related risks associated with our operations, we conducted a nature-related dependency and impact analysis on 17 subsidiaries using the WWF BRF, and then established a corresponding risk indicator hierarchy based on the WWF BRF to derive the quantified assessment results of nature-related risks for each subsidiary.

1. Physical Risk Assessment

Overall, more than half of CMPort's subsidiaries are classified as high-risk with respect to physical risks. Collectively, the subsidiaries exhibit relatively low dependence on ecosystem provisioning, regulating and supporting services (enabling services) and cultural services, while showing higher dependence on ecosystem regulating services (mitigation services), reflecting that the Company's overall operations are significantly affected by climate change. The subsidiaries generally exhibit a high-risk level of impact on ecosystems, indicating that the Company's operations require particular attention to avoid and mitigate disturbances and impacts on the ecological environment in terms of changes in land, freshwater and marine use, forest and vegetation cover, and pollution.

Among the subsidiaries, CICT and NPH are classified as low-risk, while other subsidiaries are at a medium-to-high risk level. Specifically, China Merchants Port (South China) Management Center, China Merchants Port (South China) Bulk Cargo Management Center, Zhangzhou Port, Xia Men Bay Terminals, CMBL and CMCS all have the same physical risk score. These 6 subsidiaries have a high degree of reliance on ecosystem regulation services (particularly regarding the moderating effects of tropical cyclones) and exert significant pressure on ecosystems (particularly through their impact on forest vegetation), all of which indicate that their physical risk is at a high level.

2. Reputational Risk Assessment

Overall, more than half of CMPort's subsidiaries are classified as high-risk in terms of reputational risk. Collectively, the subsidiaries face high reputational risk levels arising from both environmental and socio-economic factors, with risk drivers centering on potential reputational risks arising from development and construction in ecologically sensitive areas, relations with local residents, and labor/human rights issues. This indicates that the Company should proactively strengthen ecosystem compensation and restoration within port areas, maintain close ties with local communities, actively address community concerns, and ensure effective labor compliance management to avoid negative public sentiment.

Table 7 Risk Assessment of CMPort's Subsidiaries

Name of SubsidiaryChina Merchants Port (South China) Management CenterChina Merchants Port (South China) Bulk Cargo Management CenterZhanjiang PortShantou PortZhangzhou PortXia Men Bay TerminalsCMBLCMITQ
Physical risks
Provisioning services
Water availability
Forest productivity and distance to market
Regulatory and support services -enabling
Soil condition
Water condition
Air condition
Regulatory services - mitigation
Landslides
Wildfire hazard
Extreme heat
Tropical cyclones
Cultural services
Natural and cultural resources
Pressures on biodiversity
Land, fresh water and sea use change
Forest canopy loss
Invasives
Pollution
Reputational risk
Environmental factors
Protected areas/Conservation areas
Key biodiversity areas
Other important designated areas
Ecosystem condition
Range Rarity
Socio-economic factors
Indigenous peoples (IPs); local communities (LCs) lands and territories
Resource scarcity: Food - Water - Air
Labor/Human rights
Financial inequality
Additional reputational factors
Media scrutiny
Political situation
International focus
Risk provisions

Table 7 Risk Assessment of CMPort's Subsidiaries (Continued)

Name of SubsidiaryCMITHaiqin CompanyQianhai Bay PropertiesCMCSCICTHIPGTCPLCTNPH
Physical risks
Provisioning services
Water availability
Forest productivity and distance to market
Regulatory and support services - enabling
Soil condition
Water condition
Air condition
Regulatory services - mitigation
Landslides
Wildfire hazard
Extreme heat
Tropical cyclones
Cultural services
Natural and cultural resources
Pressures on biodiversity
Land, fresh water and sea use change
Forest Canopy Loss
Invasives
Pollution
Reputational risk
Environmental factors
Protected areas/Conservation areas
Key biodiversityareas
Other important designated areas
Ecosystem condition
Range Rarity
Socio-economic factors
Indigenous peoples (IPs); local communities (Lcs) lands and territories
Resource scarcity: Food - Water - Air
Labor/Human rights
Financial inequality
Additional reputational factors
Media scrutiny
Political situation
International focus
Risk provisions

To effectively manage nature-related risks and opportunities, CMPort has combined the assessment results of the WWF BRF to identify potential nature-related dependencies and impacts, evaluate their effects on the Company's business operations and financial position, and formulate and implement proactive response measures.

Table 8 Identification and Response to Nature-related Risks

RiskRisk CategorizationRisk DescriptionTimeframeBusiness ImpactFinancial ImpactMitigation Measures
Physical RiskAcute riskWeaken ecosystem regulatory functions, and frequent occurrence of extreme weather events (such as extreme heat and tropical cyclones)Short-, medium-, and long-termSignificant damage to port facilities, resulting in asset losses or increased repair costs. Ports are unable to carry out normal loading and unloading operations, leading to business disruption. Temporary cancellations of vessel calls will result in a reduction in business volume; delayed vessel calls will cause berth congestionIncreased operating costs, reduced operating income, and asset impairmentDevelop typhoon and flood response plans and other emergency contingency plans, and conduct regular emergency drills. Enhance the resilience of large-scale equipment against extreme weather, including installing wind-proof devices and wind-warning systems for shore-side containers, conducting regular inspections and maintenance of braking equipment, and intensifying equipment inspections to ensure the proper functioning. Strengthen berthing and unberthing management during extreme weather, including ensuring
and operational congestion for a period following The typhoon, affecting loading, unloading and transport efficiency. Extreme thunderstorms may cause harm to on-site machinery, equipment and personnel.large terminal equipment is berthed strictly in accordance with requirements, activating berthing indicator lights, and maintaining realtime communication between supervisors and pilots.
Chronic riskImbalance in the regulatory functions of the ecosystem, resulting in a reduced capacity to degrade pollutantsMedium to long termIncreased requirements for pollutant treatment facilities and management capabilities, making the construction, renovation and expansion of terminals more challengingIncreased operating costs and decreased operating incomeReplace pollutant treatment facilities as required and strengthen cooperation with third parties for waste recycling and reuse. Undertake appropriate ecological restoration and compensation measures.
TransformationRiskPolicy riskThe government has strengthened environmental requirements and oversightMedium to long termTighter carbon emission limits and enhanced emission reduction requirements in the global shipping industry, coupled with stricter environmental policies from government regulatory bodies.Increased operating costs, decreased operating revenue, and decreased operating profitTimely identify relevant emissions requirements, formulate and refine internal pollution prevention and control systems, and strictly implement central government requirements.
Market riskClients are increasingly focusing on the Company's biodiversity protection issues and are making demands regarding the eco-friendliness of the services provided by the Company.Short, medium and long termThe Company's business model is shifting towards a nature-positive approach, improving resource utilization and avoiding disruption to the ecological environment.Increased operating costs, decreased operating income, reduced operating profit; decline in financing volumeActively adapt to changing market preferences and respond to clients' nature-related requirements, continuously creating ecological value through equipment upgrades, management innovation and external partnerships.
TechnicalAlternativeMediumDevelopingIncreasesContinued
riskportservicesdrive areduction environmenta1 impact ordependence,creating acompetitive barrier.to longtermmultimodaltransportandshore-to-ship powersupply topromoteenergyconservation andemissionreductionin the portandshippingindustries,as well asadvancingtheadoptionofnew andcleanenergysourceswillincreaseR&D costs.edoperatingcostsanddecreasedoperatingprofitstrengthening oflegal complianceand governmentsupport policies.Identify key issuesin ecologicalprotection andenhanced relevantfacilities andequipment.
Reputational riskReputationaldamagearising fromtheCompany'sfailure toadoptproactiveecologicalprotectionmeasuresor frombreaches ofenvironmentalcompliancerequirements.Short,mediumandlongtermClientsreduceordervolumes;investorsdecreaseinvestmentor withdrawcapital.Increasedoperatingcosts,decreasedoperatingincome,reducedoperatingprofitanddeclinedfinancingamountStrictly complywith laws andregulations;continuously monitor theenvironmentalmanagement data andemissions of theCompany'ssubsidiaries;actively respond togovernment calls toparticipate inpublic welfareprojects related toenvironmentalprotection andcommunitydevelopment.
LiabilityriskRegulatoryauthoritiesor localnon-profitorganizations may imposeadministrative penaltiesor initiatelegalproceedingsagainst theCompany forenvironmentalviolations.Short,mediumandlongtermThecompany'sreputationis damaged,and it facespenaltiesfromregulatoryauthorities.Increasedoperatingcostsanddecreased inoperatingincomeStrictly complywith laws andregulations toensure compliancewith localenvironmentalpolicy andregulatoryrequirements;actively engagewith localstakeholders andaddress to relevantconcerns.

Table 9 Identification and Response to Nature-related Opportunities

OpportunityOpportunity CategorizationOpportunity DescriptionTimeframeBusiness ImpactFinancial ImpactAction Plan
Business PerformanceProducts and servicesAdapt to changes in consumer demand for eco-friendly services, actively develop services that meet consumer expectations, enter the market early and capture marketshare.Medium to Long TermExpansion of product market share and enhancement of green competitivenessIncrease in operating incomePromote the use of shore power by ships in port to reduce the fossil fuels consumption, thereby assisting customers to reduce their carbon emissions.
Resource efficiencyBy strengthening operational management, we aim to avoid or reduce dependencies and impacts on natural resources, thereby improving operational efficiency.Short, medium and long termReduced natural resource consumption and procurement costsReduced operating costs and increased operating incomeReduce natural resource consumption and improve resource utilization through management innovation, process optimization and equipment upgrades.
Capital flows and financingSecure additional financing opportunities by mitigating nature-related impacts and actively pursuing projects that enhance positive environmental impacts.Short, medium and long termIncreased innovative financing opportunities, such as biodiversity finance, and reduced financing costsIncreased financing volumesEstablish green/sustainable finance frameworks, focus on innovative financing methods such as biodiversity finance, and pursues sustainable financing opportunities.
Reputational capitalReceive positive feedback from stakeholders by effectively implementing ecological conservationn and biodiversity risk management.Medium to long termIncrease in positive public sentiment, driving accelerated business growthIncreased operating incomeProactively disclose information regarding the Company's sustainable development, address issues of concern to stakeholders,and implement relevant improvement measures.
Sustainable Development Performance OpportunitiesSustainable use of natural resourcesReplace the use of non-renewable natural resources with renewable alternatives to improve resource utilization efficiency.Short, medium and long termReduced procurement costsReduced operating costs and increased operating incomeImprove service delivery and management models to enhance the utilization rate of renewable resources and the comprehensive utilization rate of solid waste.
Ecosystem protection, restoration and regenerationSupport activities that protect, regenerate or restore habitats and ecosystems, and improve sustainable development performance.Short, medium and long termMaintain close ties with local communities, actively participate in community co-development, avoid conflicts with local communities and residents, and promote the development of local businessIncreased operating incomeActively communicate and collaborate with stakeholders such as local communities and non-profit organizations to strengthen ecological conservation in the areas surrounding the Company's operations.

(4) Ecosystem and Biodiversity Conservation Strategy

In alignment with the United Nations Convention on Biolo<sub>g</sub>ical Diversit<sub>y</sub>, the from the high-level meetings of the Convention on Biological Diversity (COP15), the Glas<sub>g</sub>ow Leaders <sup>'</sup> Declaration on Forests and Land Use from the UN Climate Change Conference (COP26), and the O<sub>p</sub>inions on Further jointly issued by the General Office of the CPC Central Committee and the General Office of the State Council, CMPort is committed to building green ports and eco-friendly ports, engaging in responsible business practices and ecological protection activities, and striving to become a benchmark for ecosystem and biodiversity protection in the port industry.

The Company revised its Biodivers it and Zero Deforestation Statement in 2025 and made the following commitments:

1. The Company shall comply with the laws and regulations on biodiversity and zero deforestation in the countries and regions where it operates, ensuring lawful and compliant operations;

2. The Company shall not conduct production or business operations within ecologically sensitive areas, such as nature reserves, key marine ecological functional zones, and ecological protection red lines, as designated by international organizations or the countries and regions in which it operates; 3. The Company shall avoid business activities that damage the ecological environment or have a negative impact on local biodiversity;

3. The Company shall avoid business activities that damage the ecological environment or have a negative impact on local biodiversity;

4. The Company protects and restores environmental areas affected by port activities, and takes all necessary measures to minimize the negative impact of port and logistics park operations on the ecological environment;

5. The Company's business operations do not involve deforestation. We prohibit illegal development within designated forest conservation areas in the countries and regions where we operate, and we actively participate in tree-planting and afforestation initiatives and support forest restoration activities.

To fulfil the above commitments, the Company has formulated ecosystem and biodiversity conservation strategies tailored to its actual operations and is actively promoting their implementation. The main strategies and measures are as follows:

1. We apply the principles of avoidance, mitigation, compensation and conservation to protect rare wild flora and fauna and their natural habitats. Specifically, this includes:

(1) Conducting comprehensive assessments of potential impacts on the ecosystem and local communities during the site selection and planning stages of new, refurbishment and expansion projects; prioritizing design and construction solutions that minimize local environmental disturbance, particularly avoiding adverse impacts on key biodiversity conservation areas;

(2) Conducting biodiversity baseline surveys and assessments prior to the implementation of new, refurbishment, expansion and acquisition projects; stipulating reasonable working hours; ensuring the proper management of waste generated from terminal operations, maintenance, development and construction; and establishing and implementing strict waste disposal procedures and systems at all operational sites to monitor the surrounding

environment, ensuring that construction and operational processes meet ecological conservation requirements;

(3) Scientifically implement ecological compensation measures, such as habitat restoration and restocking, in operational areas affected by disturbance to restore ecosystem functions; continuously survey, monitor and assess the ecological status of areas surrounding operational zones; and formulate targeted management plans based on the findings.

(4) Support local public welfare activities for ecological and environmental protection; collaborate with environmental organizations and communities to resolve local environmental conflicts; enhance ecosystem service levels; and focus on the survival of local endangered species and the protection of forest vegetation.

2. Integrating Nature-based Solutions (NbS)<sup>10</sup> into biodiversity conservation, supporting ecological restoration, addressing climate change risks, and achieving triple benefits for the economy, environment and society.

When carrying out biodiversity work, the Company comprehensively considers, through systematic solutions, the positive benefits of projects for climate change adaptation and mitigation, as well as for the development of local communities.

3. We optimize land use to minimize land disturbance.

The Company promotes multi-dimensional spatial utilization, increases green space at operational sites, minimizes the impact on natural land as far as possible, and carries out land restoration work in accordance with local conditions to create the basic conditions for local biodiversity conservation.

4. Land reclamation activities are prohibited within ecological red line zones clearly defined by national laws and regulations unless the necessary filing and approval procedures have been completed in accordance with these laws and regulations.

Port development and construction must complete the relevant filing and approval procedures in accordance with the law. Where port development and construction involve the occupation of natural shorelines, corresponding ecological restoration and compensation measures must be implemented in accordance with the law.

5. We actively promote the concepts of biodiversity conservation and zero deforestation, and organize training activities on ecosystem and biodiversity conservation for both internal and external stakeholders.

The Company is committed to enhancing the awareness and professional understanding of biodiversity conservation among all staff, and encourages labor subcontractors, suppliers and other relevant parties to assess and manage the biodiversity risks associated with their business activities and to implement mitigation measures.

6. Strengthening international exchange and cooperation on biodiversity conservation.

The Company will strengthen cooperation with environmental regulatory authorities, international organizations, non-profit organizations and third-party professional research institutions in the regions where it operates, to jointly carry out ecological conservation work.

Case: Zhanjiang Port Carries out 6 Rounds of Proliferation and Release Activity

To further strengthen the conservation of aquatic biological resources and restore the marine ecological environment, in accordance with the requirements of Notice of the General Office of the Ministr<sub>y</sub> of A<sub>g</sub>r iculture and Rural Affairs on Further Clarifying Matters Related to the Protection and Compensation of Aguatic Biological Resources for Fishery-Related Construction Projects (N. B. Y. [2018]No. 50) and Reply Letter Providing Opinions of the Guangdong Provincial Department of Agriculture and Rural Affairs on the Implementation Plan for Stock Enhancement and Release for Phase I Expansion Project of the Container Terminal Baoman Port Area, Zhanjiang Port, the Phase I expansion project of the Container Terminal at Baoman Port Area, Zhanjiang Port carried out 6 batches of proliferation and release activity in the sea area near Zhanjiang Port. Under the guidance of the Zhanjiang Ocean and Fishery Bureau, Zhanjiang Port implemented proliferation and release activities in the sea area of Zhanjiang Port on 6 occasions on 23 May, 30 May, 18 June, 30 June, 11 July and 18 July of 2025, for the Phase I expansion project of the Container Terminal at Baoman Port Area, Zhanjiang Port. A total of 33.40 million black seabream, 84.67 million kuruma prawns, 49.11 million blood cockles, 80.96 million Paphia undulata, and 0.26 million Chinese horseshoe crabs were released, effectively improving the marine ecological environment of Zhanjiang Port and protecting aquatic biodiversity.

图3

Case: New Construction Project of Shantou Port Plans Ecological Restoration Compensation Scheme in Advance

Prior to the implementation of the Phase III project in the Guang'ao Port Area of Shantou Port, a survey of the current status of the marine ecosystem and ecological monitoring were conducted. A comprehensive assessment was conducted to evaluate the nature-related impacts of the project on the marine ecosystem during both the construction and operational phases. Based on the assessment results, the " Im<sub>p</sub>lementation Plan for Mar ine Ecolo<sub>g</sub>ical Protection and Restoration for the Phase Ill Project in the Guang'ao Port Area of Shantou Port" was formulated, with plans to invest over RMB 20 million to support ecological restoration and compensation measures in 3 areas, namely shoreline restoration, stock enhancement and release, and the deployment of artificial reefs.

汕头港广澳港区三期工程项目用海生态保护修复实施方案(报审稿)

汕头招商局港口集团有限公司2025年10月

HIPG Ecological Management Facilitates the Formation of Microecosystems in Artificial Reefs

On 29 August 2025, Hambantota International Port released the findings of a

baseline study conducted in collaboration with the University of Maritime Sciences and Technology, Sri Lanka. The study found that the artificial reefs formed beneath the port's breakwaters have now become one of the most biodiverse coral reefs in southern Sri Lanka, with a live coral coverage of 35%, far exceeding the local average of less than 20% and are home to more than eight species of fish endemic to the region. The study indicates that, compared to nearby natural reef areas, this site exhibits a higher diversity of reef-dwelling fish, and demonstrates that appropriate ecological management during port construction can foster the thriving development of "artificial habitats". These findings not only enhance public awareness of the port's underwater ecology but also provide a scientific basis for developing future biodiversity conservation and ecotourism plans for the port.

图4

Case: TCP Organizes "Environmental Kayaking" Event

In May 2025, TCP organized the Remada Ambiental "Environmental Kayaking" event. The event took place on the Itiberê River, with 73 volunteers (including staff and local residents) using kayaks, canoes and boats to clean up litter along the river, ultimately collecting 988 kg of waste, of which 188 kg of recyclables were sorted and handed over to a local recycling cooperative for processing. The event also featured specially designed environmental education activities for parents and children, including waste sorting games, storytelling and face painting, aimed at fostering early awareness of environmental protection among children. This initiative is part of TCP's "Internal Environment Week" (SIMA), which aims to raise awareness among staff and the community regarding the ecological value of rivers. Through regular river clean-ups and the promotion of environmental education, the project contributes to the protection of the aquatic ecosystems of the Itiberê River and its downstream area, Paranaguá Bay.

图5

Case: CICT Announces Marine Environmental Protection Initiative

On World Maritime Day 2025 (observed on the last Thursday of September), CICT issued an official statement emphasizing that "the ocean is not merely a trade route, but a lifeline for humanity, the economy and the planet", and called on employees and partners to protect the marine environment through responsible port operations, emissions reduction, equipment electrification and innovative measures. This public announcement reaffirms the company's commitment to aligning with the United Nations Sustainable Development Goals (particularly SDG 14: Life Below Water), encouraging all sectors of society to prioritize the blue economy, clean oceans and ESG management.

图6

"Our Ocean, Our Obligation, Our Opportunity"

图7

COLOMBO INTERNATIONAL CONTAINER TERMINALS

Case: LCT Carries out a Mangrove Double-compensation Planting and Sea Turtle Protection Program

To minimise the nature-related impact of the dock construction project, LCT committed to a double-compensation planting plan for mangrove areas removed during the project, meaning "remove one, replant two." For this purpose, LCT partnered with local environmental organizations to jointly cultivate mangrove seedlings and continue planting in suitable areas along multiple lakeshores. In actively fulfilling ecological environmental responsibilities, LCT, starting from October 2012, has partnered with professional partners, annual funding special funds for sea turtle protection and rescue efforts along the Togo coastline. The project includes nurturing and releasing juvenile turtles, regularly monitoring changes in the state of nature in sea turtle habitats, and conducting rescue operations for adult sea turtles.

图8

III. Risk and Impact Management

(1) Management of nature-related dependencies,

impacts, risks and opportunities

As an active participant in the development of the marine economy, CMPort adopts the LEAP approach to manage nature-related dependencies, impacts, risks and opportunities in accordance with the four stages of Locate, Evaluate, Assess and Prepare.

Regarding direct operational activities, the Company clearly defines its industry sector, core business and geographical scope of operations. It utilizes domestic and international biodiversity and nature reserve databases to identify key species and ecologically sensitive areas in the vicinity of the Company's headquarters and subsidiaries. It employs tools developed by international organizations to assess the Company's nature-related dependencies and impacts, and identifies nature-related risks and opportunities based on the Company's actual operational circumstances, and actively implements responsive measures. Regarding upstream and downstream value chain activities, the Company has mapped the industries and activity types within its core value chains. Based on the characteristics of these, we analyze their nature-related dependencies and impacts. By considering the Company's cooperation with key participants in the upstream and downstream value chains, the Company identifies nature-related risks and opportunities within value chain activities and actively implements collaborative response measures.

(2) Integration of nature-related risks into corporate

risk management

CMPort regularly conducts risk assessment activities, with the scope covering departments at the Company's headquarters and its subsidiaries. Based on the actual circumstances of the annual operational context and adhering to the fundamental principles of truthfulness and objectivity, the Company focuses on assessing risk factors that affect annual operational objectives. We identify major risks faced by the Company, including strategic, market, financial, legal and compliance, operational, and ESG risks, thereby informing decision-making references for the Company's risk management decision-making. CMPort has incorporated nature-related risks into the Company's annual top ten risk assessment process and established a routine risk monitoring mechanism.

Table 10 CMPort's Nature-related Risk Management Process

Management StageSpecific Process
Risk IdentificationThe Company identifies risks based on the progress of the current year's operations and the key priorities for the following year, compiling an annual list of core risks to provide a source of risk items for the risk assessment process. Among these, natural-related risks are included in this risk identification list.
Risk ScreeningIn accordance with the risk classification management strategy, a weighted scoring method is employed to determine the risk prioritization. 20 higher-risk items are screened from the core risk list to serve as the key risk areas for risk assessment, and a risk assessment questionnaire for significant risks is prepared. Notably, if nature-related risks are selected as significant risk items in the current year, they will be included in the risk assessment questionnaire.
Risk AssessmentUsing the twenty key risks identified in the risk assessment questionnaire as the subject, a comprehensive score is calculated based on the two dimensions of "impact" and "probability". The Company assigns weights to the scores provided by management at different levels, aggregates the scores according to the results, and ultimately selects the top ten risks. Where nature-related risks are selected as key risk items for the year, they are subject to a comprehensive assessment based on "impact" and "probability".
Risk MonitoringThe Company continuously monitors and tracks the management of the top ten risks and implements specific indicator monitoring. Where nature-related risks are included in the annual top ten risks, the Company implement specific indicator-based monitoring for that year.

IV. Metrics and Targets

Based on the aforementioned analysis of dependencies and impacts, the Company faces significant nature-related risks associated with climate change, environmental pollution, and the use of land, freshwater and marine resources. Consequently, the Company has established sustainability-related indicators and targets for areas with concentrated risks, with a view to strengthening risk management, adopting environmentally friendly business practices, and diligently fulfilling its corporate social responsibilities.

Table 11 Nature-related Indicators and Targets

TopicsCommitmentIndicatorsBase YearMetricsTarget typeProgress towards targets during the reporting period
Climate Change ResponseAchieve carbon emission peaking by 2028 and carbon neutrality by 2060.Total GHG Emissions (Scope 1 + Scope 2)2022Peak greenhouse gas emission primarily carbon dioxide, by 2028, and achieve net-zero greenhouse gas emission, primarily carbon dioxide, by 2060.Long-termRoutine work
Actively optimize the industrial structure and energy mix, vigorously develop clean energy, improve energy efficiency, and reduce carbon emissions intensityGHG Intensity2024By 2025, reduce Scope 1 intensity to 6.439 tons of CO2 equivalent per RMB 1 million revenue; reduce Scope 2 intensity to 23.49 tons of CO2 equivalent per RMB 1 million revenue.Short-term100% achieved
2024By 2027, reduce Scope 1 intensity to 5.710 tons of CO2 equivalent per RMB 1 million revenue; reduceScope 2 intensity to 22.91 tons of CO2 equivalent per RMB 1 million revenue.Medium-termContinuous follow-up
per unit of output.
Environmental ManagementStrict compliance with environmental laws and regulations, with no major incidents reportedNumber of General Level 3 Environmental EmergenciesOngoingNo general Level 3 environmental incidents.Short-term Medium-term Long-term100% achieved
Exhaust EmissionsStrengthen the management of the entire exhaust gas emissions control process, optimize production processes, improve energy utilization efficiency, and reduce waste emissions at the source.Emissions intensity2024By 2025, reduce exhaust emissions intensity by 1%.Short-term100% achieved
2024By 2027, reduce exhaust emissions intensity by 2.97%.Medium-termContinuous follow-up
Non-hazardous Waste EmissionsThrough comprehensive management of the entire process, from source control to end of-pipe treatment management, we areEmission density of non-hazardous waste2024By 2025, reduce the density of non hazardous waste discharged by 2%.Short-term100% achieved
2024By 2027, reduce the density of non hazardous waste by 5.88%.Mid-termContinuous follow-up
committed to minimize waste generation.
Hazardous Waste DischargeBy establishing a strict hazardous waste management system and adapting advanced treatment technologies and equipment, we ensure that all hazardous waste is treated in a compliant and effective manner.Hazardous waste disposal rate2024Hazardous waste disposal rate maintains at 100%.Short-term Medium-term100% achieved
Waste RecyclingBy implementing effective waste sorting and enhancing comprehensive utilization rate of general solid waste, we will improve this rateComprehensive utilization rate of general solid waste2024By 2025, achieve a comprehensive utilization rate of 42.01% for general solid waste.Short-term100% achieved
2024By 2027, achieve a comprehensive utilization rate of 44.63% for general solid waste.Medium-termContinuous follow-up
further, and achieve full utilization of resources
Water Resources UtilizationStrengthen end-to-end management of water usage processes, continuously optimize water use structure, and reduce water consumption per unit of output.Water intensity2024By 2025, reduce water intensity by 1%.Short-term100% achieved
2024By 2027, reduce water intensity by 2.97%.Medium-termContinuous follow-up
Land, Freshwater and Marine UseThe Company will avoid business activities that cause harm to the ecological environment and negatively impact on biodiversityNumber of major environmental non compliance incidentsOngoing implementationEnsure that no major environmental violations or non-compliance incidents occur by implementing the following measures: During the site selection and construction planning phases of new, renovation and expansion projects, conduct a comprehensive assessment of potential nature-related impacts and prioritize design and construction plans that minimize negativedisturbances;prior to the implementation of new, renovation, expansion, and acquisition projects, conduct biodiversity baseline surveys and assessments to ensure that construction and operational processes comply with ecological protection requirements; in operational areas affected by disturbances, scientifically implement ecological compensation measures such as habitat restoration.Short-term Medium-term Long-term100% achieved
Ecosystem and Biodiversity ConservationThe Company will regularly monitor the impacts of its business activities on the surrounding ecological environment and species.Monitoring frequencyOngoing implementationEach subordinate unit shall, at least once a year, conduct environmental impact monitoring, species distribution monitoring, and invasive species monitoring within 5-kilometer radius of the port area, to assess the impact of their operations.Short-term Medium-term Long-term100% achieved
Coverage ofbiodiversity impact assessments for new construction projectsOngoing implementationFor all newconstruction projects, ensure that a biodiversity impact assessment is conducted annually prior to construction to identify the project's nature-related impacts on the ecological environment.Short-termMedium-term Long-term100% achieved
Note: Target type includes short-term (1 year), medium-term (1-5 years) and long-term (over 5 years) targets.

Table 12 Performance of Nature-related Indicators

Addressing Climate Change
IndicatorsUnit2022202320242025
Total GHG Emissions (Scope 1 + Scope 2 + selected category of Scope 3) $^{11}$ tCO2 e/453, 579. 19483, 317. 921, 643, 247. 63
Total Operational GHG Emissions (Scope 1 + Scope 2)tCO2 e486, 555453, 522483, 241. 01472, 965. 04
Scope 1 Direct GHG EmissionstCO2 e114, 222103, 361103, 991. 50108, 982. 95
Scope 2 Indirect GHG EmissionstCO2 e372, 333350, 161379, 249. 52363, 982. 09
Scope 3 Other Indirect GHG Emissions $^{12}$ tCO2 e///1, 170, 282. 59
GHG EmissionIntensity (Scope 1+ Scope 2)tCO2 e/RMB 1millionrevenue29.9828.8029.9627.42
Environmental Management
IndicatorsUnit2022202320242025
Number of generalLevel 3environmentalemergenciesincidents0000
Pollution Emissions Management
IndicatorsUnit2022202320242025
Exhaust EmissionIntensitykg/RMBmillionrevenue//831.02778.37
WastewaterDischargeIntensitytons/RMB 1millionrevenue47.2772.6369.6343.22
Non-hazardousWaste DischargeDensitytons/RMB 1millionrevenue0.83610.98040.85530.6737
Hazardous WasteDischarge Densitytons/RMB 1millionrevenue0.06840.04700.04020.0514
ComprehensiveUtilization Rate ofGeneral Solid Wastetons/RMB 1millionrevenue//40.51%43%
Water Resource Utilization
IndicatorsUnit2022202320242025
Water UsageIntensity $^{13}$ tons/RMB 1millionrevenue333.03280.96295.68223.77
Land, Freshwater and Marine Use
SeriousEnvironmentalViolationscases0000
Ecosystem and Biodiversity Conservation
IndicatorsUnit2022202320242025
Coverage Rate ofBiodiversityImpact Assessmentsfor NewConstructionProjects%100%100%100%100%

Appendix: TNFD Index Table

PillarDisclosure RequirementsLocation
GovernanceA. Describe the board's oversight of nature-related dependencies, impacts, risks and opportunities.I. Governance(1) Nature-related governance framework
B. Describe management's role in assessing and managing nature-related dependencies, impacts, risks and opportunitiesI. Governance(1) Nature-related governance framework
C. Describe the organization's human rights policies and engagement activities, and oversight by the board and management, with respect to Indigenous Peoples, Local Communities, affected and other stakeholders, in the organization's assessment of, and response to, nature-related dependencies, impacts, risks and opportunities.I. Governance(2) Stakeholder Engagement
StrategyA. Describe the nature-related dependencies, impacts, risks and opportunities the organization has identified over the short, medium and long term.II. Strategy(2) Assessment of natural-related dependencies and impacts(3) Management of Nature-Related Risks and Opportunities
B. Describe the effect nature-related dependencies, impacts, risks and opportunities have had on the organization's business model, value chain, strategy and financial planning, as well as any transition plans or analysis in place.II. Strategy(3) Management of Nature-Related Risks and Opportunities
C. Describe the resilience of the organization's strategy to nature-related risks and opportunities, taking into consideration different scenarios.II. Strategy(4) Strategies for Ecosystem and Biodiversity Conservation
D. Disclose the locations of assets and/or activities in the organization's direct operations and, where possible, upstream and downstream value chain(s) that meet thecriteria for priority locations.II. Strategy(1) Positioning and Interfaces with Nature
Risk & impact managementA(i) Describe the organization's processes for identifying, assessing and prioritising nature-related dependencies, impacts, risks and opportunities in its direct operations.III. Risk and Impact Management (1) Management of Nature-related Dependencies, Impacts, Risks and Opportunities
A(ii) Describe the organization's processes for identifying, assessing and prioritising nature-related dependencies, impacts, risks and opportunities in its upstream and downstream value chain(s).
B. Describe the organization's processes for managing nature-related dependencies, impacts, risks and opportunities.
C. Describe how processes for identifying, assessing, prioritising and monitoring nature-related risks are integrated into and inform the organization's overall risk management processes.III. Risk and Impact Management (2) Integration of Nature-Related Risks into Corporate Risk Management
Metrics & targetsA. Disclose the indicators used by the organization to assess and manage material nature-related risks and opportunities in a manner consistent with its strategy and risk management process.IV. Indicators and Targets
B. Disclose the indicators the organization uses to assess and manage its dependencies on and impacts on nature.
C. Describe the targets and goals used by the organisation to manage nature-related dependencies, impacts, risks and opportunities and its performance against these.
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