On December 15, 2023, the First Business & Good Business Forum and the China Corporate Social Responsibility List Award Ceremony took place in Shanghai. With the theme "Resilience and Symbiosis: Beyond ESG, Ushering in a New Era of Sustainability," this year's forum brought together professionals, institutional representatives, and business executives to discuss practical experiences and development prospects of ESG within the current landscape.

Leverage won the "2023 CBN China Social Corporate Responsibility List - ESG Innovation Practice Award" at the First Finance CSR Annual Ceremony for its exceptional performance in the ESG field. Leverage's Chief Operating Officer, Mr. Fei Cheng, personally accepted the award on behalf of us.

As the concept of Corporate Social Responsibility (CSR) gains traction, companies are increasingly recognizing the importance of fulfilling their social responsibilities, with external influences playing a significant role. This trend is prompting various industries to actively pursue advancements in Environmental, Social, and Governance (ESG) practices, fostering a more responsible business landscape. In his speech, First Financial CEO Chen Sijie introduced the First Financial Good Business Forum as part of the "Thought Contribution" series, focusing on the China Corporate Social Responsibility List. This year, the forum will explore potential directions for ESG and seek opportunities to surpass current standards. The aim is to generate fresh ideas and identify new paths for achieving high-quality societal development while promoting harmonious coexistence between humanity and nature.

Qin Shuo, a humanistic financial observer, initiator of Qin Shuo's circle of friends, and co-director of the China Business Civilization Research Center, analyzed in his subsequent keynote speech "CSR and ESG in the context of Chinese companies going overseas", which is not only an international standard, but also has received a strong local response. If Chinese companies go global, if they cannot use world standards such as CSR and ESG to communicate and put them into practice wherever they go, there may be a lot of lessons in the future. We must stick to the path of good business based on CSR and ESG and carry it through to the end.

Currently, the connection between international ESG standards and the development of local Chinese enterprises is garnering significant attention. Huang Zhi, Chairman of S&P Global China and CEO of S&P Credit Ratings, delivered a talk titled "Sustainable Finance and ESG Promote High-Quality Development of Chinese Enterprises." She referenced the famous quote from ice hockey legend Wayne Gretzky: "Good hockey players play where the puck is; great hockey players play where the puck will be." This analogy effectively illustrated how companies can leverage their strong performance in the ESG arena to foster long-term positive development and enhance their sustainability through greater adaptability

When discussing how ESG promotes sustainable development, Fan Ziying, Dean of the School of Public Economics and Management at Shanghai University of Finance and Economics and Director of the Fuguo ESG Research Institute, emphasizes the need to "shift from altruism to a win-win approach." He argues that a stable circular development structure has emerged among the environment, governance, and society. For a company to derive genuine value from ESG, it must consider both the dimensions that are significant to the organization itself and those that matter to its stakeholders. Furthermore, the sustainable development of enterprises hinges on transitioning from mere procedural compliance to substantive compliance, moving away from generic standards in favor of more tailored classifications, and evolving from static frameworks to dynamic ones.

As a representative of a company that practices low-carbon, environmentally friendly and green development responsibilities, Zhao Bingdi, President of Panasonic Electric (China) Co., Ltd., delivered a keynote speech on the theme of "From Responsibility to Opportunity, ESG Empowers Panasonic's Sustainable Development Path". He introduced Panasonic's efforts to achieve the group's goal of "realizing an ideal society with both material and spiritual abundance" from multiple dimensions, including environmental management, factory carbon emission reduction, water resource protection, waste reduction, green home appliances, carbon reduction solutions, research and development, products and solutions, customer service, safe production, career development, and employee growth.

Following this, Yicai hosted the launch ceremony for the 2004-2024 Global ESG 20th Anniversary Series of Activities. Yu Jian, Executive Director of Yicai Research Institute, presented the 2023 CSR report and provided insights on its findings. This year's report, themed "Reshaping the Texture of State-owned Enterprises," focuses on the evolution of corporate social responsibility in China. It examines the social responsibilities of state-owned enterprises and explores innovative development paths suited to China’s context, aiming to drive innovation, transformation, and upgrading within these enterprises. This approach is intended to boost their competitiveness and market capabilities while serving as a model for other companies, ultimately fostering high-quality development across society.

The round table discussion focused on "Resilience, Symbiosis, and Sustainable Development: Fresh Perspectives on ESG Management." Participants included Zhang Lin, Deputy Secretary-General of the Shanghai First Financial Public Welfare Foundation; Xie Anqi, Director and Public Welfare Head of Arrow Home Furnishing Group; Fu Yue, Head of the Corporate Affairs Department at Helion China; and Wang Yunpeng, Head of Public Affairs at Huizheng Finance.

At the 2023 For Good Award launch conference, Our CEO Mr. Qu was invited to share insights on ESG corporate practices. He emphasized his company's sustainable business approaches that assist Chinese firms in integrating into the global supply chain. Mr. Qu asserted that sustainable development isn't exclusive to listed companies or large organizations, highlighting Leverage's practices as a strong example. He concluded by stating that addressing social issues necessitates a comprehensive view of the entire supply and value chain, noting that the success of sustainable development ultimately hinges on its integration with business products and services.

On June 30 of this year, Leverage published its 2022 ESG Sustainable Development Report, outlining the company's practices and achievements in environmental, social, and corporate governance based on principles of objectivity, standardization, transparency, and comprehensiveness. Over the past year, Leverage has actively pursued its ESG strategy, engaging in various initiatives and leveraging its influence to collaborate with stakeholders on sustainable development goals. Looking ahead, the company is committed to enhancing its ESG practices and further promoting corporate sustainability.

Leverage had participated in the selection for eight awards at this year's For Good Award. In the end, General Manager Qu was invited to attend the 2023 For Good Annual Meeting at the end of November. During the award ceremony, held the day after the annual meeting, he was recognized as one of the annual TOP10 For Good Entrepreneurs in his role as General Manager of Leverage. Additionally, Leverage received the annual TOP10 Business For Good Finalist Medal and the annual For Good Enterprise Certificate.

The theme of this year's annual meeting was "ESG and Sustainable Development Value Innovation." The event brought together nearly 100 participants from government departments, research institutions, business sectors, investment organizations, industry associations, and social organizations, fostering discussions on emerging trends in ESG development, sustainable business practices, and social value innovation.

Additionally, Mr. Qu was invited to deliver a keynote speech at the second ESG Development Forum held at the end of July this year, where he serves as co-leader of the Sustainable Development Standards Project Group at the Shanghai Federation of Industrial Economics. In his address, he began by outlining the preparation process for group standards, including the "Guidelines for the Preparation of Corporate Environmental, Social, and Governance Reports." He then highlighted that current disclosure standards, both domestically and internationally, fail to adequately reflect the unique characteristics of China's modernization and corporate culture. Mr. Qu expressed his hope that by establishing new standards, companies will be better equipped to disclose information and tackle the associated challenges.

Concluding his speech, he acknowledged the numerous challenges and difficulties that lie ahead on the path of innovation. However, he emphasized a strong belief that continuous innovation is essential for meeting customer needs, sustaining competitive advantages, and achieving long-term growth. Thus, he reaffirmed the commitment to pursue innovation relentlessly, challenge themselves, create value, and make significant contributions to customers and society.