Linklogis Releases 2023 ESG Report: Serving RMB19.2 Billion of Transactions Related to Sustainable Supply Chains

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Shenzhen, China, April 25, 2024 (GLOBE NEWSWIRE) -- 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

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