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Technology for Good, Ecological Win | SY Releases 2022 ESG Report

2023-04-28
April 27, 2023 – SY Holdings Group Limited ("SY" or the "Group"; Stock Code: 6069.HK) has published its 2022 Environmental, Social, and Governance (ESG) Report, detailing the Group’s progress in integrating ESG principles into corporate governance and business operations. 

 

The report highlights SY’s efforts in advancing inclusive finance through technology, building a low-carbon ecosystem, fostering employee development, and creating social value, providing valuable insights for ESG-focused investors.

 

 

1. ESG Governance Aligned with UN Sustainable Development Goals

 
 
Amid a rapidly evolving business environment, SY has strengthened its ESG governance framework to ensure long-term resilience. In 2022, the Group enhanced board diversity by appointing additional female independent directors and maintained its MSCI ESG "A" rating for the second consecutive year. Sheng Ye was also included in the Hang Seng Sustainability Benchmark Index, reflecting its leadership in sustainable practices.
 
 

 

United Nations Sustainable Development Goals 

 

Through stakeholder engagement, SY assessed 21 material ESG issues based on their significance to both the company and its stakeholders, forming an ESG priority matrix aligned with the United Nations Sustainable Development Goals (UN SDGs).

Signing of Dual ESG Framework Syndicated Loan

 

The Group also pioneered China’s first "Dual ESG Framework" syndicated loan, combining industrial internet and digital finance with UN SDGs to promote sustainable supply chain financing.

 

2. Technology-Driven Innovation for SME Financial Inclusion

 

As a key enabler of SME growth, SY has deepened its "Industrial Internet + Digital Finance" strategy to address financing challenges for small businesses. In 2022, the Group invested RMB 150 million in R&D, with tech talent comprising 25% of its workforce. It holds 55 patents and software copyrights and was certified as a "National Encouraged Software Enterprise."
 

 

Certification as a State-Encouraged Software Enterprise" and "Software Product Certification

 

SY's proprietary SYT Cloud Platform connects 107 financial institutions with over 12,000 clients, 99% of which are SMEs. The platform facilitated RMB 19.8 billion in SME financing, reducing processing time by 90% and earning recognition as a "Top Fintech Innovation Case" in China's factoring industry.

Meeting the Financing Needs of SMEs

 

SY Holdings is equally committed to responsible operations, rigorously safeguarding data security and preventing customer privacy breaches.

 

 

▲员工培训

 

In 2022, SY conducted 3 employee integrity training sessions, with full staff participation in cybersecurity training. According to the report, the company organized a total of 9 information security training sessions, reaching 2,956 participants, while maintaining zero data privacy incidents and zero customer privacy-related complaints.

 

3.Green Development for a Low-Carbon Future

 

Committed to China’s "Dual Carbon" goals, SY promotes sustainable practices across its value chain. The Group launched a "Green Construction, Tech for Good" initiative to decarbonize infrastructure supply chains and prioritized financing for eco-friendly projects in public infrastructure and industrial parks.

 

Launch of the "Green Construction, Tech for Good" Public Welfare Initiative

 

SY hosted a digital ecosystem launch event under the theme "Digital Construction, Smart Connectivity for the Future", where it unveiled the "Green Construction, Tech for Good" public welfare initiative, leveraging its platform connectivity to collaborate with upstream and downstream partners in building a green infrastructure supply chain. Additionally, SY supports traditional industries - including infrastructure and healthcare - through its supply chain technology services such as smart construction sites and medical SPD (Supply Processing & Distribution) solutions, enabling digital transformation and carbon footprint reduction across these sectors. Furthermore, the company is advancing sustainable finance to facilitate low-carbon projects, with prioritized investments in infrastructure, public buildings, industrial parks, and new infrastructure projects.

 

Comparative Case Studies of Industrial Internet Solution Applications

 

In its operational carbon reduction efforts, SY has implemented a digital, systematic, and intelligent supply chain technology model through its SYT Cloud Platform. The platform offers comprehensive features including e-signatures, video goods inspection, registration and duplicate checking with the China Central Depository, intelligent text analysis, and linkage with the PBOC credit reporting system. This enables a completely paperless, 100% online process for customers - from document upload and loan application to credit approval and disbursement - eliminating the need for physical document exchange and business travel, thereby avoiding associated carbon emissions. As of the reporting period, the SYT Cloud Platform has cumulatively saved approximately 33.04 million sheets of paper, equivalent to reducing carbon emissions by 256 tons.

 

SYT Cloud Platform Core Service Workflow

 

SY has implemented comprehensive lean management practices to advance sustainable operations, establishing phased carbon reduction targets with clear implementation roadmaps. During the reporting period, the company conducted impactful awareness campaigns including Earth Day initiatives and "Low-Carbon Dining" programs, while achieving an 86% adoption rate of new energy vehicles for business travel - demonstrating tangible progress in its green office transformation.

 

4. People-Centric Approach: Growing Together With Our Employees

 

Sustainable corporate development cannot be achieved without the collective efforts of all employees. Upholding its 'people-oriented' culture, SY has built an equal, inclusive and diverse work environment - in 2022, women accounted for 54% of its workforce, surpassing industry standards. The company actively championed women's empowerment while strengthening internal communication through five 'Dialogue with Partners' sessions and two 'Executive Face-to-Face' meetings, ensuring employee voices are heard at all organizational levels.

 

Meeting

 

To comprehensively enhance employees' professional capabilities, SY has established a multi-dimensional training system and officially launched its digital learning platform - "SY Academy" - which provides tailored training content for various positions and career development stages. The company has cultivated an internal trainer team of over 80 professionals to fully leverage and stimulate employees' intrinsic motivation. During the reporting period, SY conducted 87 training sessions for 366 employees, achieving an exceptional 99% satisfaction rate.

 

▲应届生培训

 

Simultaneously, SY places high priority on employee care initiatives. Beyond safeguarding fundamental rights including housing, transportation, and medical insurance, the company regularly organizes diverse staff activities such as Family Open Days, sports competitions, and movie events to foster a genuine sense of belonging. In 2022, these efforts resulted in 83% employee satisfaction with benefits packages and earned SY dual honors: Lagou's '2022 Top Socially Responsible Employer in China's Internet Sector' award and Moka's 'Organizational Development Innovation Award'.

 

5. Heart-Driven Initiatives: Advancing Social Welfare With Compassion

 

Upholding sustainable development and fulfilling social responsibilities represent critical ways for businesses to deliver societal value. In 2022, SY established its SY Foundation, which focuses on three key philanthropic pillars: supporting underprivileged children, empowering rural revitalization through industry partnerships, and nurturing youth development programs. Through these concerted efforts, the foundation aims to create meaningful impact across communities while translating corporate values into tangible social contributions.

 

Inauguration Ceremony of the SY Foundation

 

In July 2022, SY launched a rural revitalization project at Zhuguanlong School (Shouning County, Fujian Province) under the theme "Empowering Rural Education Through Improved Learning Environments." This was followed in November by a collaborative "Angel Heartbeats" campaign screening children for congenital heart disease, featuring China's first digital RMB donation model. The year concluded with December's "Supply Chain Finance Talent Scholarship" program partnership with Shenzhen University's School of Economics.

 

SY Philanthropic Initiative Case Studies

 

Since 2014, SY has consistently carried out philanthropic initiatives for eight consecutive years, demonstrating its enduring commitment to social responsibility. To date, the company has donated approximately RMB 10 million and created positive impact for over 3,660 beneficiaries. During the reporting period alone, SY organized 13 charitable programs, with employee participation reaching 97 volunteer engagements and contributing 1,097 hours of community service.

 

Moving forward, "We will continue collaborating with stakeholders to advance ESG practices, drive green industrial transformation, and contribute to societal sustainability," stated SY.