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1、Environmental,Social and Governance Report 202301ContentOverviewCorporate GovernanceESG GovernanceAbout TencentMessage from the ChairmanExecutive SummaryBoard Independence and DiversityRisk ManagementCommercial Value,Social Value,and Shareholder ValueBoard StatementESG StrategyESG Governance Structu
2、reAnnual Review of ESG Working GroupIntegrate ESG Concepts into Corporate CultureESG Materiality Assessment020304050607070809091011About This ReportESG Key Performance TablesClimate-Related Risks and OpportunitiesList of Tencent Cloud Security Compliance CertificationsAssurance ReportGreenhouse Gas
3、Verification StatementReporting Frameworks Index9110112114AppendixChapter 1 Environmental ProtectionChapter 2 Care for Our PeopleChapter 3 Protect Digital RightsChapter 4 Create Sustainable Social ValueChapter 5 Business Ethics1.1 Our Approach1.2 Environmental Governance and Risk Manageme
4、nt1.3 Climate Strategy and Action 1.4 Carbon Neutrality1.5 Biodiversity and Nature Protection1.6 Metrics and Targets2.1 Our Approach2.2 Talent Acquisition and Retention2.3 Implement Diversity,Equity and Inclusion2.4 Support Career Development2.5 Promote Health and Vitality3.1 Protect User Data Priva
5、cy3.2 Safeguard Cyber and Data Security3.3 Protect Intellectual Property3.4 Promote Responsible AI3.5 Digital Safety and Well-Being4.1 Advance Technology Innovation4.2 Create the Social Value of Digital Technology4.3 Digital Inclusive Finance4.4 Promote Barrier-Free Technology4.5 Popularise Philanth
6、ropy5.1 Adhere to Practising Integrity5.2 Promote Fair Competition5.3 Anti-Money Laundering Risk Management5.4 Sustainable Supply Chain0323336394346 525759627100 10210302About TencentMessage from the ChairmanExecutive SummaryOverviewCorporate GovernanceESG GovernanceAppendixCha
7、pter 2 Care for Our PeopleChapter 3 Protect Digital RightsChapter 4Create Sustainable Social ValueChapter 5 Business EthicsChapter 1 Environmental ProtectionAbout TencentValue for Users,Tech for GoodTencent is a world-leading internet technology company that upholds the vision and mission of Value f
8、or Users,Tech for Good.Founded in 1998,we have been developing innovative products and services that enhance the quality of life of people.Tencent has been listed on the Main Board of the Stock Exchange of Hong Kong since June 2004.Our communication and social services connect more than one billion
9、people around the world,enabling them to stay in touch with friends and family,enjoy digital entertainment and use life services,and complete transactions via our secure online payment platforms.We publish some of the worlds most popular video games and other high-quality digital content,providing r
10、ich interactive entertainment experiences for people around the globe.Tencent also offers a cloud computing,advertising,FinTech,and other enterprise services to our business partners,supporting their digital transformation and business growth.User value is our guiding principle.We strive to incorpor
11、ate social responsibility to our products and services,promote technology innovation and cultural vitality,help industries digitally upgrade and collaborate with others in our community towards the sustainable development of society.03About TencentMessage from the ChairmanExecutive SummaryOverviewCo
12、rporate GovernanceESG GovernanceAppendixChapter 2 Care for Our PeopleChapter 3 Protect Digital RightsChapter 4Create Sustainable Social ValueChapter 5 Business EthicsChapter 1 Environmental ProtectionMessage from the ChairmanDigital technology and artificial intelligence are core strengths powering
13、the sustainable development of our company.Through these strengths,we create user value,commercial value for various industries we serve,and social value,fulfilling our mission of Value for Users,Tech for Good.The 99 Giving Day event,held for the ninth consecutive year,is an excellent example of how
14、 we implement Tech for Good.We support philanthropic organisations,through the deployment of our digital technologies and the access to our massive user base,to raise donations for their projects listed on the Tencent Philanthropy platform,and then share project updates to the donors.The number of d
15、onations in 99 Giving Day surged to 65 million in 2023,more than 30 times higher than in 2015,and total donations reached new highs of RMB3.8 billion.The XPLORER PRIZE and the New Cornerstone Investigator Programme,which provide long-term funding to scientists in basic sciences research,have gained
16、high recognition within the scientific community.To date,more than 300 outstanding scientists have received funding,and their research topics are diverse and differentiated.We also provide funding to social projects dedicated to finding innovative pathways to tackle societal challenges,including Ten
17、cent Technology Public Welfare Venture,CarbonX Programme and Vitality Programme,our incubator programmes supporting innovative endeavours in philanthropy,carbon-related technologies,and healthcare services in underserved regions.In addition,Tencent and the China Foundation for Rural Development have
18、 jointly launched the Rural Revitalisation Huoshui Programme to provide training on project design,operations,and financial management to grassroot philanthropic organisations in 151 underdeveloped counties in China.The programme was named among the Global Best Poverty Reduction Practices by the Wor
19、ld Bank and the Food and Agriculture Organisation of the United Nations in 2023.Within the company,our commitment to creating social value is engrained in our culture and reflected in our products.We encourage managers to thoughtfully integrate commercial value and social value in product use cases
20、and have included this requirement in the balanced scorecard review of certain core businesses since 2023.We mobilised employees to join the Act for Good initiative and take part in such campaigns launched in Weixin Pay,games,Weixin Video Accounts and our other products.Tencent AIMIS Medical Imaging
21、 Platform of Digital Intelligence is a good example of how our business teams worked together to expand social value.AIMIS,which has won the 2023 World Internet Conference Award for Pioneering Science and Technology,operates high-speed screening of medical images assisted by artificial intelligence
22、and enables physicians to diagnose more efficiently.By deploying AIMIS to the nationwide Pilot Project to Prevent and Control Two Cancers for Women funded by our sustainable social value business unit,this collaboration has made cancer screenings more accessible for women in underprivileged areas.Ar
23、tificial intelligence(AI)has permeated into many aspects of life and work.Traditional AI and generative AI provide substantial assistance in creating,optimising,or customising product experiences and enhancing commercialisation of the digital economy.In the real economy,AI helps humans reduce repeti
24、tive work,freeing up manpower and time,and provides operational support in unsafe,time-consuming,or low-efficiency work environments.AI thus enables humans to re-direct their time and energy towards more valuable,more safe,and more creative tasks.Tencent has invested significant manpower and resourc
25、es in AI and our proprietary foundation model Tencent HunYuan has been deployed to over 600 product use cases.We are committed to developing and deploying AI safely,ethically and in compliance with emerging AI regulations.Our technical and business teams must adhere to Tech for Good and are required
26、 to make thoughtful decisions on what we can and will do and what we can but will not do before they allocate resources to related projects.Tencent is committed to practising Tech for Good via our support for meaningful initiatives and our purposeful action,and build partnerships in the society to p
27、romote the well-being of humankind.Ma Huateng Chairman of the Board04About TencentMessage from the ChairmanExecutive SummaryOverviewCorporate GovernanceESG GovernanceAppendixChapter 2 Care for Our PeopleChapter 3 Protect Digital RightsChapter 4Create Sustainable Social ValueChapter 5 Business Ethics
28、Chapter 1 Environmental ProtectionExecutive SummaryEnvironmentalSocialGovernanceWe continued to execute our ESG strategies by proactively identifying and managing relevant risks,as well as integrating the creation of sustainable social value in our daily operations and product development.During 202
29、3,we made significant progress in the following areas:Tencent is committed to assisting people with physiological limitations in bridging the digital divide and has adapted our core products to be fully accessible.We established the United Laboratory for Accessibility Research,in collaboration with
30、the China Disabled Persons Federation,to promote barrier-free environment in public spaces.We deployed our Ethereal Audio AI technology to hearing aids and have worked with industry partners to produce high quality and affordable products for the hearing impaired,helping them blend in digital life.W
31、e continue to invest in technologies and research to enhance our capabilities in user privacy and data protection to safeguard users digital rights.Privacy Impact Assessments is now a compulsory step in product development and operations,and third-party data processing controls has been reinforced.W
32、e gave free access to a range of foundational security functionalities on Tencent Cloud to small and medium-sized enterprises,promoting their awareness and capabilities in cybersecurity.No significant security incidents or data breaches occurred during the reporting period.We are committed to promot
33、ing the United Nations Sustainable Development Goals.With Tencent AIMIS Medical Imaging Platform of Digital Intelligence,we helped medical professionals increase the efficiency of screening and diagnosis,and rolled out large-scale screening programmes for certain diseases in under-served areas.Our S
34、mart and Healthy programme,which aims to set up 100 Future Classrooms and 100 Future Sports Fields in underdeveloped regions,provided local teachers and students an equitable opportunity to immerse in the fun,interactive learning experience brought by innovative technologies.By year-end,they made ov
35、er 4 million visits to these facilities.We developed a collaboration platform for emergency services and humanitarian organisations to enhance operational efficiencies while they handled emergency rescue and disaster relief.The platform was proven to be useful in earthquake early warnings,natural di
36、sasters,and automated external defibrillator interventions.We signed up to the Womens Empowerment Principles,reinforcing our commitment to promote diversity,equity and inclusion in the Company.In 2023,the senior executive management team has set the direction for further promoting inclusion.A projec
37、t team was appointed to conduct in-depth analysis and identify pathways for increasing female representation in the company and in decision-making roles.The project team will work with relevant departments to customise action plans.Tencent joined the United Nations Global Compact in August 2023,pled
38、ging to integrate its Ten Principles into our business decisions and take proactive actions to support the United Nations Sustainable Development Goals.We developed our ESG Code of Conduct for suppliers and will work with them to ensure compliance of business practices.We promoted the green transfor
39、mation of our supply chain by introducing environmental compliance appraisals in the selection process and annual reviews,and providing our intelligent solutions to operate and maintain low-carbon data-centres to our partners.We were pleased that Tencent was included in two of the Dow Jones Sustaina
40、bility Indices,namely DJSI World Index and the DJSI Emerging Markets Index,in December 2023,reflecting the wide recognition of our progress in ESG management by the capital market.James MitchellJohn LoCo-ChairsESG Working Group We made progress towards our carbon neutrality goal by reducing emission
41、s through energy management.Our fourth-generation data centre technology T-Block enables us to use energy more efficiently in data centres and we are promoting the transition to renewable energy across our operations.In 2023,the proportion of renewable electricity used rose from 7.2%in 2022 to 12.4%
42、.This was attributed to the augmented installed capacity of our self-built renewable energy facilities to 52.2MW,along with the uptake in the procurement of renewable electricity to 604.3 million kWh,representing an increase of 166.3%and 79.6%respectively,compared to 2022.Drawing on the LEAP approac
43、h in the Taskforce on Nature-related Financial Disclosures recommendations,we conducted our first nature-related risk assessment.We identified the impacts,dependencies,risks and opportunities of our business operations on nature and biodiversity,which would be useful for developing our action plans.
44、We have upgraded our AI-Powered Snow Leopard Recognition and Data Management Platform and extended its use to protect other species,fulfilling our pledge in our Biodiversity Statement.05Board StatementBoard Independence and DiversityRisk ManagementCommercial Value,Social Value,and Shareholder ValueO
45、verviewCorporate GovernanceESG GovernanceAppendixChapter 2 Care for Our PeopleChapter 3 Protect Digital RightsChapter 4Create Sustainable Social ValueChapter 5 Business EthicsChapter 1 Environmental ProtectionBoard Independence and DiversityTencent has established a unitary board.As of 31 December 2
46、023,the Companys board of directors(the Board)comprised of eight directors,including an executive director,two non-executive directors(NEDs)and five independent non-executive directors(INEDs).The NEDs are from the senior management of Naspers which is a substantial shareholder of Tencent.They bring
47、business,financial and management experience from a global perspective and in reflection of the long-term interests of shareholders as they perform the supervisory duties of the Board.The INEDs are professionals from a wide range of industry backgrounds.They bring in expertise and management experie
48、nce in different fields and provide checks and balances that safeguard the interests of the shareholders,the Company and the stakeholders.From 2021 to 2023,the proportion of NEDs and INEDs in the Board increased from 75%to 87.5%,and that of INEDs in the Board increased from 50%to 62.5%.To better ser
49、ve the long-term interests of our stakeholders,the Board delegates certain matters requiring particular time,attention and expertise to its committees.As such,the Board has established five committees to assist the Board:Audit Committee,Corporate Governance Committee,Investment Committee,Nomination
50、Committee and Remuneration Committee.Audit CommitteeCorporate Governance CommitteeInvestment CommitteeNomination CommitteeRemuneration CommitteeChairmanIndependent non-executive directorNon-executive directorSenior executive of Tencent1Executive directorIndependent non-executive directorExecutive di
51、rector00110Non-executive director11111Independent non-executive director24032Proportion of non-executive directors and independent non-executive directors100%100%33.3%80%100%Core responsibilities review financial information and oversee the financial reporting system;manage relationships with extern
52、al auditors;review managements work on risk management and internal control systems and oversee the risks undertaken by the Company;oversee anti-money laundering and sanctions compliance system.review and monitor ESG-related matters,including the progress on strategies,targets and metrics and the di
53、sclosure in ESG report,and make recommendations to the Board;review matters related to corporate governance and the disclosure in corporate governance report,and make recommendations to the Board;review and monitor compliance with legal and regulatory requirements;review the shareholders communicati
54、on policy and make recommendations to the Board as appropriate.identify,consider and make recommendations concerning mergers,acquisitions and disposals;ensure compliance with the Listing Rules and any other relevant laws and regulations with respect to any mergers,acquisitions or disposals.review an
55、d monitor the structure,size,composition and diversity of the Board;identify suitable and qualified individuals and recommend new Board members to the Board;review and advise the Board on shareholders nominations for directorships;assess the independence of INEDs and their perspectives,skills and ex
56、periences they bring to the Board;review and monitor the implementation of the Board Diversity Policy and the Board Nomination Policy.review and approve the remuneration policy and structure of directors and senior executives,ensuring that such remuneration proposals are in line with corporate goals
57、 and objectives;ensure that neither the director nor any of his associates are involved in determining his own remuneration;review and approve share scheme-related matters.1 The Chairman of the Investment Committee is Mr.Lau Chi Ping Martin,President of Tencent.The Board values the diverse experienc
58、e of its directors and recognises the oversight provided by the NEDs and INEDs.The Board makes continuous efforts on maintaining a good mix of director tenure lengths to embrace various viewpoints and perspectives from existing and new directors,while ensuring the effectiveness and efficiency in ful
59、filling their fiduciary duties.Two out of the five INEDs have served for more than nine years.The Nomination Committee and the Board,after careful assessment,are of the view that they have the character,integrity,independence and expertise to fulfil their roles as INEDs effectively and will continue
60、 to bring valuable experience,knowledge and professionalism to the Board.The Board focuses on a diverse set of factors when selecting directors,including industry knowledge,professional background,experience and gender,having due regard to the benefits of board diversity.We have implemented the Boar
61、d Diversity Policy and Board Nomination Policy,and we have fully considered the Companys current policies and the Listing Rules requirements when assessing whether the candidates are eligible to serve as directors.In 2023,the proportion of female directors on the Board increased to 25%,and the Board
62、 targets to increase the proportion of female directors to 30%by 2030.Board members of the Company have deep domain expertise covering a wide range of sectors,including computer and information technology,telecommunication,business administration,financial management,accounting,law,medicine,and soci
63、al sciences.The Board has delegated its responsibility to oversee the Companys ESG matters to the Corporate Governance Committee.The Corporate Governance Committee is chaired by a NED and comprises of four INEDs.For details of the Companys corporate governance efforts in 2023,please refer to the Cor
64、porate Governance Report section of Tencents 2023 Annual Report.Corporate Governance06Board StatementBoard Independence and DiversityRisk ManagementCommercial Value,Social Value,and Shareholder ValueOverviewCorporate GovernanceESG GovernanceAppendixChapter 2 Care for Our PeopleChapter 3 Protect Digi
65、tal RightsChapter 4Create Sustainable Social ValueChapter 5 Business EthicsChapter 1 Environmental ProtectionAs an Internet and technology company with a wide variety of rapidly changing businesses,the Company has adopted the following dynamic risk management process in response to the ever-changing
66、 risk landscape:Risk ManagementAdequate and effective risk management and internal control systems are key to safeguarding the achievement of the Companys strategic objectives.In respect of establishing the organisational structure for risk management,implementing risk management processes,and enhan
67、cing risk culture,the Company has been continuously improving its risk management and internal control system,as well as enhancing its risk management capabilities to ensure the healthy and sustainable development of the Company.The Board acknowledges that it is its responsibility to ensure that the
68、 Company has established and maintained adequate and effective risk management and internal control systems.The Board delegates its responsibility to the Audit Committee to review the management practices with respect to risk management and internal control on a quarterly basis,including the design,
69、implementation and monitoring of risk management and internal control systems.The Audit Committee also reviews the effectiveness of risk management and internal control systems on an annual basis.The members of the Audit Committee have extensive experience and knowledge in financial management and r
70、isk management.They also receive updates on the latest risk management requirements and best practices from the internal teams and would discuss in the quarterly Audit Committee meetings if necessary.Under the supervision and guidance of the Board,the Company has adopted a risk management and intern
71、al control structure,referred to as the Three Lines Model,to ensure the effectiveness of its risk management and internal control systems.We have integrated ESG-related factors,including but not limited to climate change and human capital management,into the Companys risk assessment and internal con
72、trol management processes.We also conduct regular risk identification and assessment,prioritise risks based on the results of the assessment,and formulate appropriate risk response measures accordingly.Risk Governance StructureRisk Management ProcessIntegrating ESG into Risk ManagementRisk CultureTh
73、e Company is committed to establishing and improving the internal control environment,to strengthening employees risk management awareness,and to continuously enhancing its risk management capabilities.The Company provides regular risk management and internal control training to all employees throug
74、h various channels such as on-site and online courses,comic series,and online interactive columns.The training covers topics such as risk management system,key risk analysis and internal control activities.Risk management training is included in the mandatory courses for new employees to increase th
75、e overall employees risk awareness.In addition,the Company incorporates the evaluation results of the risk management and internal control practices of business groups and functional departments into the performance review process.On behalf of the Board,the Audit Committee supervises the overall ris
76、k management of the Company and assesses the acceptable level of risk,risk rating,and response strategies of the Companys risks.The Audit Committee considers that management has taken appropriate measures to address and manage the significant risks that they are responsible for at a level acceptable
77、 to the Board.For details of the significant risks and corresponding response measures for 2023,please refer to the Corporate Governance Report section of Tencents 2023 Annual Report.Business and functional departments of each business group identify,assess and respond to risks in the course of oper
78、ation in a bottom-up and systematic manner.Through collecting,consolidating,and analysing the Companys businesses,the Internal Control Department builds a list of significant risks at both the corporate and business level,and ensures that appropriate risk response strategies and control measures hav
79、e been taken for such risks.These significant risks as well as the corresponding risk responses and control measures will be reviewed by management and subsequently by the Audit Committee before reporting to the Board.The Internal Control Department analyses and evaluates the responses to significan
80、t risks from time to time,and reports to the Audit Committee at least once a year.The Audit Committee,on behalf of the Board,assesses and determines the nature and level of the risks that the Company is willing to take in order to achieve its business objectives and formulates appropriate response s
81、trategies which include designating responsible departments for handling each significant risk.The Audit Committee provides guidance to the Companys management to implement effective risk management system with support from the Internal Control Department.07Board StatementBoard Independence and Dive
82、rsityRisk ManagementCommercial Value,Social Value,and Shareholder ValueOverviewCorporate GovernanceESG GovernanceAppendixChapter 2 Care for Our PeopleChapter 3 Protect Digital RightsChapter 4Create Sustainable Social ValueChapter 5 Business EthicsChapter 1 Environmental ProtectionCommercial Value,So
83、cial Value,and Shareholder ValueBoard StatementSince our strategy upgrade to promoting sustainable innovations for social value,alongside nurturing the consumer internet and embracing the industrial internet,we have positioned the Company with a clear strategic vision for future development and stre
84、ngthened our foundation in sustainability.Tencent continues to place user value at the core of our mission and culture,and at the forefront of commercial value design for our products and services.Our investment in social value innovations,which is funded by investment gains and may take time to pro
85、duce scalable outcomes,is separate from the resources we allocated in R&D for our products,technologies and platforms that are crucial for creating user value and ultimately shareholder return.We proactively manage the balance between commercial value,social value and shareholder value,ensuring the
86、interests of shareholders and stakeholders are considered and the Company can steadfastly attain sustainable development in the long run.In the design of commercial value,user value is our foundation.We invest heavily in technologies and products,strengthening the protection of user privacy and data
87、 security to deliver superior product experience to our users.By supporting industries to upgrade digitally,we create social value together for the society,which in turn allow us to share the commercial benefits brought by the convergence of digital and real economies.In promoting digital industrial
88、isation and industrial digitalisation,we position Tencent as a digital assistant that facilitate innovation and entrepreneurship and provide enabling technologies to support industries digital transformation.On social value innovation,we focus on deploying our products and technologies to find innov
89、ative pathways to solve social pain points.We encourage our business teams to enhance the social value of our products,for example,digital accessibility for communities with activity limitations and protection of endangered wildlife.Led by our Sustainable Social Value organisation,we provide funding
90、 support to scientists specialising in basic science research and,in nine other core areas,partnered with recognised philanthropic organisation to incubate projects that can bring scalable benefits to society.Regarding shareholder value,we are committed to maintaining a high standard of corporate go
91、vernance and integrating social and environmental factors in our corporate strategies and risk management.Our continuous focus on user value creation and the integration of social value and commercial value will strengthen the Companys foundation in sustainability,thus safeguarding shareholder value
92、.The Board assumes full responsibility for the Companys ESG strategy and reporting,and has delegated its responsibility to oversee ESG related matters to the Corporate Governance Committee.Under the 3-tiered ESG governance structure(please refer to the ESG Governance ESG Governance Structure section
93、 for more information)established by the Company,the ESG Working Group will provide support to the Corporate Governance Committee to oversee the implementation,progress and performance management of the Companys ESG-related matters.During the reporting period,the Board has participated in the materi
94、ality assessment and prioritisation of key ESG issues.Through interviews,surveys,meetings,and other means,directors provided their views and suggestions regarding ESG topics that could potentially impact the Companys long-term sustainable development and evaluated the priorities of such topics(pleas
95、e refer to the ESG Governance ESG Materiality Assessment section for more information).The senior executive management team and business leaders have also participated in the assessment of key ESG risks related to the business,and formulated risk response measures by considering the possibility,impa
96、ct,and trends of key ESG risks.In addition,the Company has incorporated key ESG risks into its annual corporate risk assessment and comprehensive risk management system.The Board and the Corporate Governance Committee regularly supervise ESG tasks,review the key risks,and make recommendations for me
97、asures to be taken.The Corporate Governance Committee kept track of ESG-related matters via regular updates,special reports and responses to ad-hoc inquiries prepared by the ESG Working Group.The Corporate Governance Committee and the Board closely followed material ESG topics that may significantly
98、 impact the Companys business development,and oversaw the formulation and implementation of relevant response strategies.The Companys annual ESG report,which obtained third-party limited assurance,is reviewed and approved by the Corporate Governance Committee and the Board.Cash dividendShare repurch
99、aseDistribution in specieFY2021FY2022FY2023For the year ended 31 December 2023,total return of capital to shareholders(In USD billion)1.90.36.34.32.91.916.913.3In the past years,Tencent has returned substantial capital to shareholders through payment of cash dividend,share repurchases,and settlement
100、 of distribution in specie.We completed the special distributions in specie of Class A ordinary shares of JD.com in 2022 and Class B ordinary shares of Meituan in 2023 to qualified shareholders respectively,which enhanced the return of capital to shareholders.During the year ended 31 December 2023,T
101、encent repurchased a total of approximately 152 million shares on the Stock Exchange of Hong Kong for an aggregate consideration of approximately HKD49.4 billion before expenses.The repurchased shares were subsequently cancelled.We intend to at least double the size of our share repurchases to over
102、HKD100 billion in 2024.The repurchase is effected for the enhancement of shareholder value in the long term.Subject to the approval of the shareholders at the 2024 Annual General Meeting,the Board has recommended the payment of a final dividend of HKD3.40 per share(2022:HKD2.40 per share)for the yea
103、r ended 31 December 2023.08Integrate ESG Concepts into Corporate CultureESG Materiality AssessmentESG StrategyESG Governance StructureAnnual Review of ESG Working GroupCorporate GovernanceESG GovernanceAppendixChapter 2 Care for Our PeopleChapter 3 Protect Digital RightsChapter 4Create Sustainable S
104、ocial ValueChapter 5 Business EthicsChapter 1 Environmental ProtectionOverviewBusiness Operations Uphold business ethics.Operate in compliance with the laws,and establish and adhere to a code of ethical business conduct that encompasses anti-fraud,anti-unfair competition,and anti-money laundering pr
105、actices;Improve corporate governance.Ensure the effectiveness,independence,and diversity of our governance system,and integrate ESG into risk management and control,to protect the rights of shareholders and related parties;Provide our employees with a diverse,equitable,inclusive,and safe work enviro
106、nment,empower their professional growth,and nurture technology talents.Users Protect the privacy of our users and the security of their data and digital properties.Implement a rigorous user privacy policy and cybersecurity strategy,and build a healthy digital content ecosystem to provide valuable pr
107、oducts and protect the rights of users;Listen to feedback from users and actively respond to their needs,enquiries,and complaints,and continuously enhance the quality of products and services accordingly;Support users,especially the minors,the silver generation,and people with physical limitations,s
108、o that they have access to equal opportunities to become part of the development of the digital economy in a safe Internet environment.Business Partners Assist industries,especially small and medium-sized enterprises(SMEs)in managing digital transformation;Ensure fair and equitable treatment when de
109、aling with our business partners,and encourage them to give us feedback regarding our business practices;Eliminate and crack down on illegal or unwarranted behaviours that are harmful to long-term business partnerships by empowering our Risk Management and Internal Control Department and Anti-fraud
110、Investigation Department.Community and Industry Increase community investment,leverage our platforms and technologies to implement Tech for Good,and alleviate social pain points through innovative applications;Support digital philanthropy by leveraging digital capabilities to reduce the barrier for
111、the public to participate in philanthropic activities,improving the operational efficiency of philanthropic organisations to better serve its users,and continuously enhancing the transparency of philanthropic projects;Contribute to the advancement of the Internet industry via open-source partnership
112、s and open platform collaboration.Environment Consider the environmental impact of our products during the development and operation stages;Reduce our carbon footprint and increase the use of renewable energy to achieve carbon neutrality in our operations and supply chains by 2030;assist industries
113、in strengthening climate change management,contributing to the low-carbon transformation of society through technological solutions;Raise the environmental awareness among employees and users,and encourage the adoption of eco-friendly practices to reduce carbon emissions and waste while also minimis
114、ing resource consumption.Based on our vision and mission,Value for Users,Tech for Good,Tencents ESG strategy is aligned with our business strategy,which takes into consideration consumers,industries,and society.Our ESG strategy has become a core element of our corporate culture and is recognised by
115、the management and employees as the driving force behind the Companys sustainable development.We implement ESG management systematically on three levels via:(i)establishment of an ESG governance structure covering the Board,the management,and staff;(ii)integration of ESG concepts into our corporate
116、culture and ESG practices in day-to-day business operations;and(iii)publication of an ESG report annually in line with international standards to increase transparency,enabling stakeholders to witness our involvement and progress in the ESG realm.With the rapid advancement of artificial intelligence
117、 alongside the convergence of digital,and real economies in a globally interconnected landscape,the Internet industry is faced with a spectrum of new market opportunities and risks.Tencent is committed to creating products that generate value for users and business partners,as well as identifying an
118、d managing related risks in advance.At the same time,Tencent upholds Tech for Good,uses technologies to alleviate environmental and social pain points,and promotes the 17 sustainable development goals,taking our share of responsibility as a good corporate citizen.The implementation of Tencents ESG s
119、trategy is summarised on the right.ESG GovernanceESG Strategy09Integrate ESG Concepts into Corporate CultureESG Materiality AssessmentESG StrategyESG Governance StructureAnnual Review of ESG Working GroupCorporate GovernanceESG GovernanceAppendixChapter 2 Care for Our PeopleChapter 3 Protect Digital
120、 RightsChapter 4Create Sustainable Social ValueChapter 5 Business EthicsChapter 1 Environmental ProtectionOverviewThe Company has established a comprehensive and robust ESG governance structure,which advances ESG governance and performance enhancement at three levels:oversight by the Board,driven by
121、 the management,and implemented by ESG Champions.Since the establishment of the ESG Working Group(see the illustration chart below)in 2021,the Corporate Governance Committee has further strengthened its oversight through inquiries,written reports,face-to-face meetings,and review of the annual ESG re
122、port prepared by the ESG Working Group.ESG Governance StructureAnnual Review of ESG Working GroupThrough the annual conference and various topical sessions,the ESG Working Group kept its members abreast of the latest developments in the evolving ESG landscape,conducted in-depth sharing on ESG perfor
123、mance management initiatives,and fostered a stronger integration of ESG concepts across our products and operations.In 2023,we launched an award programme to honour the best examples of ESG implementation,which aims to promote ESG awareness and enhance ESG performance.Participating cases were shortl
124、isted based on ESG requirements relevant to the Company,with winning cases determined by popular votes from employees.Awardees were invited to present their cases at the ESG Working Group annual conference.In August 2023,Tencent joined the United Nations Global Compact(UNGC),committing to integratin
125、g its Ten Principles into our business decisions and pledging to take concrete actions to advance the United Nations Sustainable Development Goals(UNSDGs).We remain focused on driving the execution of ESG-related policies at the Group level,including the Environmental Protection Management Policy,Bi
126、odiversity Statement,and a statement on Our Commitment to Diversity,Equity and Inclusion.In areas such as human resources,privacy and security,anti-fraud,anti-monopoly,and anti-money laundering,which all have ESG-related policies,we will continue to upgrade existing policies to strengthen implementa
127、tion and ensure compliance.More information about Tencents policies can be found on our official website,under ESG-Governance-Policy page.Institutional Investor,an internationally recognised magazine,has ranked Tencent as the No.1 ESG performer in the Asia-Pacific region(excluding Japan)for two cons
128、ecutive years,based on a survey of over 6,000 professional investment and financial services institutions globally.S&P Global raised the ESG score of Tencent Holdings(00700.HK),ranking it among the top five globally in the sector.In December 2023,S&P Global included Tencent in its Dow Jones Sustaina
129、bility Indices(DJSI)World Index and the DJSI Emerging Markets Index.The Office of the Privacy Commissioner for Personal Data in Hong Kong presented Tencent the Gold Certificate of the Privacy-Friendly Award,a testament to our industry-leading performance and commitment to the security of user privac
130、y and data.AfterClimate,based on its analysis of the online game industrys progress towards carbon neutrality,rated Tencent as an industry leader for our carbon reduction efforts.Wind has upgraded Tencents ESG rating to AA,which is the highest score among our peers.Wind is one of the leading China-b
131、ased financial information services provider.The ESG Working Group has established five special committees to promote internal collaboration and strengthen ESG risk management and performance.Enhance the disclosure of information related to user privacy and data security protection issues;assess the
132、 appropriateness and feasibility of joining relevant international initiatives or industry coalitions;drive the continuous optimisation of internal policies and guidelines.Strengthen supply chain ESG management,leads internal departments and suppliers to introduce the basic principles of ESG,and tra
133、ck implementation progress and results.Promote the integration of diversity,equity and inclusion into corporate culture and day-to-day business operations,explore the overall direction and goals,and track progress and effectiveness.Promote biodiversity awareness within the Company,facilitate collabo
134、rative projects for the conservation of biodiversity,and explore quantitative impact measurement.Develop an ESG communication strategy,enrich content,and expand channels to enhance the awareness of all employees and gain recognition among stakeholders.User Privacy and Data SecurityBiodiversity Conse
135、rvation Diversity,Equity and InclusionSupply Chain ManagementESG Communications Empowered by the Board to lead ESG governance.Corporate Governance Committee Assists the ESG Steering Team in identifying ESG objectives;coordinates various business and functional teams to develop action plans and track
136、 progress;Serves as the secretariat of the ESG Working Group and periodically reports on the Companys ESG-related matters to the Corporate Governance Committee.Leveraging their respective areas of expertise and resources,ESG Champions collaborate to drive the Companys ESG initiatives and provide reg
137、ular updates to the ESG Coordination Office on the latest developments;Comprised of employee representatives from various business groups and functional teams covering specific ESG topics.ESG Coordination OfficeESG Champions Leads the ESG Working Group to set out the Companys ESG strategy and priori
138、ties;Co-chaired by the Chief Strategy Officer and Chief Financial Officer,it is well-represented by senior executives from various business groups or functional lines covering specific ESG topics.ESG Steering TeamThe BoardESG Working GroupAs we continue to advance our ESG governance and management,o
139、ur ESG efforts gained recognition from investors,research institutions,and ESG rating agencies:10Integrate ESG Concepts into Corporate CultureESG Materiality AssessmentESG StrategyESG Governance StructureAnnual Review of ESG Working GroupCorporate GovernanceESG GovernanceAppendixChapter 2 Care for O
140、ur PeopleChapter 3 Protect Digital RightsChapter 4Create Sustainable Social ValueChapter 5 Business EthicsChapter 1 Environmental ProtectionOverviewIntegrity,Proactivity,Collaboration,Creativity are Tencents cultural values,and these are what guide the Companys long-term sustainable development.Tenc
141、ents cultural values are also recognised by its employees,consistently ranking among the top three attributes in the Companys employee engagement and satisfaction survey for five consecutive years.Integrate ESG Concepts into Corporate CultureCorporate culture is an important part of implementing our
142、 ESG strategy,and inspires employees to practise ESG concepts into their work.In 2023,we gradually integrated our ESG concepts into our corporate culture through the following initiatives and activities:We popularised ESG knowledge to all employees via our monthly quiz,helping them understand the me
143、aning of ESG and its specific material issues as well as the latest trends.Material issues popularised in 2023 included biodiversity,Diversity,Equity and Inclusion(DEI),privacy protection,data security and cybersecurity,and business ethics.On World Earth Day,World Environmental Day,and other occasio
144、ns,we provided our employees with online and offline environmental protection popularisation activities,such as AR games,to help them understand the importance of biodiversity.Tencent works with employees to create a diverse,equitable,and inclusive workplace culture,and launched virtual and in-perso
145、n activities targeting gender equality and cross-cultural communication.For example,we launched Women in Tech,an event where women from different backgrounds share their multicultural upbringings as well as their experiences in their respective areas of expertise.For more information,please refer to
146、 the Care for Our People Implement Diversity,Equity and Inclusion section of this report.CreativityPush for breakthrough innovations,and explore future possibilities.ProactivityPursue positive contributions,volunteer for responsibility,and push for breakthroughs.IntegrityUphold principles,ethics,ope
147、nness,and fairness.CollaborationBe inclusive and collaborative,and strive to progress and evolve.We communicate the Companys standards,procedures,and requirements for the protection of personal data and privacy to all employees.For relevant personnel in positions that involve the handling of persona
148、l information,we conducted specific training and assessments on personal data protection.For more information on privacy and security,please refer to the Protect Digital Rights Protect User Data Privacy section of this report.Training in data security is an essential part of our employees onboarding
149、 process.We also provide further in-depth training for key positions,covering the basics of security awareness,as well as vulnerabilities and defences,R&D security standards,and data-security requirements.For more information,please refer to the Protect Digital Rights Safeguard Cyber and Data Securi
150、ty section of this report.We initiated the Act for Good internal initiative.As of December 2023,more than 13,000 employees have participated over 650 campaigns for doing good.For more information,please refer to the Create Sustainable Social Value Popularise Philanthropy section of this report.The T
151、encent Sunshine Code of Conduct(the Sunshine Code)is a mandatory course that employees must take every year.They are also required to pass the corresponding quiz.All employees must also sign a commitment to abide by the Sunshine Code of Conduct.For more information,please refer to the Business Ethic
152、s Adhere to Practising Integrity section of this report.11Integrate ESG Concepts into Corporate CultureESG Materiality AssessmentESG StrategyESG Governance StructureAnnual Review of ESG Working GroupCorporate GovernanceESG GovernanceAppendixChapter 2 Care for Our PeopleChapter 3 Protect Digital Righ
153、tsChapter 4Create Sustainable Social ValueChapter 5 Business EthicsChapter 1 Environmental ProtectionOverviewESG Materiality AssessmentUser satisfaction surveys,online customer service,and social media platformsIndustry conferences,supplier conferences,supplier evaluation,and site visitsEmployee sat
154、isfaction surveys,annual staff meetings,internal bulletinboards,whistleblowing channels,and social media platformsCharity projects,charity fundraising platforms,company website,and social media platformsInformation disclosure,policy consultation and feedback,special meetings or reports,and official
155、visitsIndustry events,press conferences,social media platforms,and company websiteInvestor meetings,company announcements,shareholders meetings,official website,and social media platformsUsersBusiness PartnersEmployeesMedia and General PublicGovernments and RegulatorsNGOsInvestorsThe opinions and su
156、ggestions from stakeholders are particularly important for the Company to effectively identify ESG risks and enhance ESG management.We regularly communicate with our stakeholders to understand their expectations and feedback on the Companys ESG performance.Our stakeholders include users,governments
157、and regulatory bodies,employees,investors,business partners,non-governmental organisations(NGOs),the media and the public.Our communication channels include but are not limited to the Companys website,Official Accounts on social platforms,online and in-person meetings,investor and press conferences,
158、and employee satisfaction surveys.Stakeholder CommunicationImpact on Tencents BusinessImpact on StakeholdersEnvironmentalSocialGovernance1Climate Change Response and Carbon Neutrality2 Energy Management3Protecting Ecosystems and Reducing Natural Resource Dependence4 Waste Management5 Water Managemen
159、t6Leveraging Digital Technologies to Develop Environmental Protection Solutions7 Talent Attraction8Employee Compensation and Benefits,and Well-Being9 Talent Development and Retention10 Diversity,Equity and Inclusion11Corporate Culture Building to Achieve ESG Values12 Employee Health and Safety13Ensu
160、re Legal and Compliant Labour Practices,Protect Employees Rights and Interests14Product Innovation for Enhancing Quality and Efficiency of Digital Life15 FinTech16 HealthTech17 EdTech18 Protection of Minors19Supporting the Digital Transformation of the Real Economy20Promoting the Business Developmen
161、t of Individuals and SMEs21Promoting Digital Inclusion and Bridging the Digital Divide22 User Privacy and Cyber Security622324252627282930313233To identify and evaluate various ESG topics that are of priority to Tencent,we engaged a third-party consultancy to conduct
162、 a materiality assessment.The material assessment steps are as follows:Identify a list of potential material ESG topics by taking into consideration of 1)common issues raised by internal and external stakeholders,2)topics covered by major ESG reporting standards and frameworks,including The Stock Ex
163、change of Hong Kong Limiteds ESG Reporting Guide,International Financial Reporting Standards(IFRS)S1&S2,the Task Force on Climate-Related Financial Disclosures(TCFD),the Taskforce on Nature-related Financial Disclosures(TNFD),the Global Reporting Initiative(GRI)Standards,and the Sustainability Accou
164、nting Standards Board(SASB)Standards,UNSDGs and 3)global sustainable development trends.Understand concerns and views on material ESG topics via in-depth interviews and online surveys across stakeholder groups.In order to solicit views from a wider range of stakeholders,we conducted online surveys f
165、or customers(users and business partners),employees,regulatory bodies,suppliers,academia,media and NGOs.We conducted interviews with directors,management and investors to gain an in-depth understanding of their prioritisation of ESG topics,as well as their perspectives and recommendations on our ESG
166、 strategy.Determine the relative importance of ESG topics through mapping materiality matrix.23 Intellectual Property Protection24 Technological Ethics25 Digital Safety and Well-Being26 User Service and Satisfaction27 Community Investment28 Corporate Governance29 Anti-monopoly30 Anti-money Launderin
167、g31 Anti-corruption32 Supply Chain Management33 Stakeholder Dialogue and CooperationStakeholder CommunicationMateriality Assessment12OverviewCorporate GovernanceESG GovernanceAppendixClimate Strategy and ActionCarbon NeutralityBiodiversity and Nature ProtectionMetrics and TargetsChapter 2 Care for O
168、ur PeopleChapter 3 Protect Digital RightsChapter 4Create Sustainable Social ValueChapter 5 Business EthicsChapter 1 Environmental ProtectionOur ApproachEnvironmental Governance and Risk ManagementEnvironmental ProtectionWe believe digital technology is a key tool for tackling climate change and prot
169、ecting ecosystems and biodiversity.We will deploy our capabilities to help users,industries,and society to transition to a more eco-friendly environment.The World Economic Forums Global Risks Report 2024 lists the most serious global risks for the next decade,naming extreme weather events,critical c
170、hanges to the Earth system,biodiversity loss and ecosystem collapse as the top three concerns.The significant impact of climate and biodiversity risks on the global future reinforces our environmental protection actions for carbon neutrality and biodiversity conservation.0Chapter 11.1 Our
171、 Approach1.2 Environmental Governance and Risk Management1.3 Climate Strategy and Action1.4 Carbon Neutrality1.5 Biodiversity and Nature Protection1.6 Metrics and Targets13Climate Strategy and ActionCarbon NeutralityBiodiversity and Nature ProtectionMetrics and TargetsChapter 1 Environmental Protect
172、ionOur ApproachEnvironmental Governance and Risk ManagementOverviewCorporate GovernanceESG GovernanceAppendixChapter 2 Care for Our PeopleChapter 3 Protect Digital RightsChapter 4Create Sustainable Social ValueChapter 5 Business Ethics1.1 Our ApproachTencent aims to continuously reduce our dependenc
173、e and impact on the environment and create environmental benefits through our products and technologies.We actively identify,evaluate,and address climate-and nature-related risks while adhering to our environmental commitments,includingachieving carbon neutrality by 2030.To continuously improve our
174、environmental management capability,we have defined the responsible department and reporting mechanism for environmental protection,which is managed by the ESG Working Group and reported to the Corporate Governance Committee on a regular basis.Carbon neutrality632,588.6 MWhClimate response measures
175、assessmentConsumed 632,588.6 MWh of renewable energy and avoided 360,765.3 tonnes of carbon emissions,a 76.6%improvement compared to 2022.Assessed and implemented response measures for physical risks to enhance climate resilience based on the results of climate scenario analysis.Wastemanagement4,298
176、.5 tonnes369.7 tonnesReused 4,298.5 tonnes of electronic equipment,a 56.8%improvement compared to 2022,and reduced the generation of additional electronic waste.Demagnetised and crushed 369.7 tonnes of used hard disks,which were recycled by qualified institutions for resource utilisation.Biodiversit
177、y protectionNature-related risk assessmentSpecies conservationConducted assessments on nature-related impacts,dependencies,risks,and opportunities with reference to TNFD Locate,Evaluate,Assess,and Prepare(LEAP)approach.Applied digital technologies including AI and cloud computing in species conserva
178、tion,including the snow leopard,panda,and migratory birds.WatermanagementWater-saving facilities in data centresApplication of sponge city technologyApplied claimed water and water-saving air-conditioners in data centres.Applied sponge city technology to reuse rainwater in office buildings.Green sup
179、ply chainSupplier environmental compliance assessmentApplication of intelligent low-carbon technology in supply chainTook suppliers environmental compliance performance as an evaluation dimension in the process of supplier engagement,and flagged suppliers that had committed violations and the corres
180、ponding environmental risks.Extended the IDC Intelligent Operation and Maintenance Platform to third-party data centres to enhance the intelligence and sustainability of data centres.Our Progress in 2023Climate Nature Tencent formulated and implemented Environmental Protection Management Policy,inco
181、rporating green concepts into our product development process.Our environmental management takes into account both risk management and opportunities,managing climate-and nature-related risks to improve the resilience of our operations and supply chain,while leveraging the digital technology to empow
182、er users,industry and society to achieve a green transition.In order to disclose our enhancement in environmental topics in a comprehensive and balanced manner,we refer to international environment-related disclosure frameworks,including TCFD,IFRS S2,and TNFD.14OverviewCorporate GovernanceESG Govern
183、anceAppendixChapter 2 Care for Our PeopleChapter 3 Protect Digital RightsChapter 4Create Sustainable Social ValueChapter 5 Business EthicsClimate Strategy and ActionCarbon NeutralityBiodiversity and Nature ProtectionMetrics and TargetsChapter 1 Environmental ProtectionOur ApproachEnvironmental Gover
184、nance and Risk Management1.2 Environmental Governance and Risk ManagementGovernanceTencents environment governance is underpinned by our ESG governance framework,with a focus on climate-and nature-related issues,risk management and opportunities.Building upon our climate governance structure,we have
185、 further improved our nature and biodiversity governance structure in 2023.A dedicated Biodiversity Conservative Special Committee has been established under the ESG Working Group,which is responsible for the implementation of nature and biodiversity conservation.Board of DirectorsThe Board of Direc
186、tors is supported by the Corporate Governance Committee to oversee the performance and implementation of Tencents environment management progress,including:Review the results of the assessment of risks and opportunities,and oversee the implementation of response measures;Oversee strategies and speci
187、fic actions;Review and monitor progress on climate-and nature-related targets.The ESG Working Group is responsible for managing and coordinating Tencents environmental efforts and reports to the Corporate Governance Committee twice a year.ManagementManagement and CoordinationImplementationThe ESG Wo
188、rking Group,detailed composition of which is set out in ESG Governance-ESG Governance Structure section:Identify and assess climate-and nature-related risks and opportunities;Conduct nature-related impact and dependency analysis;Review strategy and monitor the measures of climate risk response and o
189、pportunity seizing;Review targets alignment with the Companys strategy,and international standards including SBTi;Conduct annual audits of climate-and nature-related metrics;Enhance employee awareness and capacity building on climate-and nature-matters.The Carbon Neutrality Joint Project Group,led b
190、y the Groups Senior Vice President,consists of related departments,including Strategy Development Department,Carbon Neutrality Lab,Data Centre Green Energy Team,Admin Department,ESG Coordination Office,and low-carbon related product teams:Develop climate-related strategy,including response measures
191、for climate-related risks and initiatives for seizing opportunities;Implement climate response measures and explore business opportunities;Develop climate-related targets and set up metrics to regularly monitor the progress.The Biodiversity Conservation Special Committee,affiliated with the ESG Work
192、ing Group,detailed composition of which is set out in ESG Governance-ESG Governance Structure section:Develop and implement measures,and reduce the nature-related impact and dependency of Tencents operation and value chain;Develop and implement response measures for nature-related risks and initiati
193、ves for seizing opportunities;Initiate biodiversity preservation projects,and apply digital technology to ecosystems and species conservation;Track nature-and biodiversity-related indicators to measure the effectiveness of efforts.15OverviewCorporate GovernanceESG GovernanceAppendixChapter 2 Care fo
194、r Our PeopleChapter 3 Protect Digital RightsChapter 4Create Sustainable Social ValueChapter 5 Business EthicsClimate Strategy and ActionCarbon NeutralityBiodiversity and Nature ProtectionMetrics and TargetsChapter 1 Environmental ProtectionOur ApproachEnvironmental Governance and Risk ManagementClim
195、ateNatureStep 1:Risk Inventory and Identification Preliminarily identify climate risks and opportunities aligned with the TCFD categories;Analyse sectoral and peer best practices;Generate a long list of climate-related risks and opportunities.Step 1:Locate the interface with nature Geolocate operati
196、on sites;Use various datasets to identify sensitive locations on asset level.Step 2:Risk Assessment and Scenario Analysis Select low and high carbon climate scenarios;Select short-,medium-,and long-term time horizons;Conduct scenario analysis on sector and asset level to identify material climate ri
197、sks and opportunities on our business operation and value chain.Step 2:Evaluate dependencies and impacts Identify and evaluate the dependencies and impact drivers associated with our business operation and value chain on sector level.Step 3:Impact Assessment of Risks and Opportunities Conduct qualit
198、ative analysis of climate impacts on business strategy and financial planning;Conduct quantitative analysis of climate financial impact through developing financial quantification modelling.Step 3:Assess risks and opportunities Identify and assess our nature-related risks and opportunities.Step 4:Ri
199、sk Management and Response Enhance climate risk response measures for material risks and opportunities;Regularly monitor the progress of risk management improvements.Step 4:Prepare to respond Respond to key risks through risk management and mitigation measures.Tencent incorporated climate-related ri
200、sks into the Companys risk assessment and management system in 2021.In 2023,we further established nature-and biodiversity-related risk management process.Risk ManagementClimate-and Nature-Related Risk Management Process16OverviewCorporate GovernanceESG GovernanceAppendixChapter 2 Care for Our Peopl
201、eChapter 3 Protect Digital RightsChapter 4Create Sustainable Social ValueChapter 5 Business EthicsClimate Strategy and ActionCarbon NeutralityBiodiversity and Nature ProtectionMetrics and TargetsChapter 1 Environmental ProtectionOur ApproachEnvironmental Governance and Risk Management1.3 Climate Str
202、ategy and ActionTencent continuously reviews its climate strategy,identifies climate-related risks and opportunities under short-,medium-,and long-term time horizons through scenario analysis,implements response measures,and regularly evaluates the effectiveness of the measures.Climate-Related Scena
203、rios AnalysisSince 2022,we have engaged professional consultants to conduct the climate scenario analysis,using the Intergovernmental Panel on Climate Change(IPCC)and the International Energy Agency(IEA)as the primary datasets,and selecting low-and high-carbon climate scenarios to assess the climate
204、 risks and opportunities associated with Tencents business operations and value chain.The results of the analysis are applied to the development of our climate response strategy to enhance our climate resilience.Time Horizons and Climate Scenarios SelectionRisk and Opportunity CategoryTime HorizonsC
205、limate Scenarios SelectionPhysical Risks1 Acute ChronicBaseline22030320503IPCC Sixth Assessment Report IPCC Shared Socioeconomic Pathways(SSP)Low-carbon scenarios,aligned with Paris Agreement:SSP1-2.6High-carbon scenarios:SSP3-7.0 SSP5-8.5Transition Risks Policy&Legal Technology Market Reputation203
206、0204020504IEALow-carbon scenarios,aligned with Paris Agreement:Net Zero Emission ScenarioHigh-carbon scenarios:Stated Policies ScenarioTransition Opportunities Energy Efficiency Energy source Products&Services Market Resilience1 Physical climate risks are assessed by applying 30-year data based on t
207、he standard of the World Meteorological Organisation.2 Baseline covers the data for the period 1985-2014,which is used to assess the ability of climate models to simulate the historical records of climate hazards.3 2030 and 2050 covers the data for the periods 2015-2044 and 2035-2064,respectively.Th
208、ese data are used to evaluate the potential impact of physical climate risks on operations in the short-term,medium-term,and long-term.4 Transition risks and opportunities are assessed at 10-year intervals for capturing the short-,medium-and,long-term impact of abrupt changes.17OverviewCorporate Gov
209、ernanceESG GovernanceAppendixChapter 2 Care for Our PeopleChapter 3 Protect Digital RightsChapter 4Create Sustainable Social ValueChapter 5 Business EthicsClimate Strategy and ActionCarbon NeutralityBiodiversity and Nature ProtectionMetrics and TargetsChapter 1 Environmental ProtectionOur ApproachEn
210、vironmental Governance and Risk ManagementClimate-related Risks and Opportunities Assessment and ResponseThe physical risk scenario analysis was conducted across nine climate hazards under three scenarios and three time horizons.We assessed 11 transition drivers including seven transition risks and
211、four transition opportunities.Refer to Appendix-Climate-related Risks and Opportunities for detailed information.In 2023,we further sorted out and enhanced our response measures for climate risks,including assessed data centres response measures for material physical risks.Our material climate risks
212、 and corresponding response measures are elaborated in the table on the right side.Summary of the Climate-Related Risks and Opportunities Associated Impacts and ResponsesKey Climate Risk and OpportunityImpact DescriptionResponsesExtreme heat Higher cooling demand of facilities due to temperature inc
213、rease may lead to increased operating costs;The operation of power-consuming facilities is disrupted by shortage of power supply under extreme heat conditions,which may lead to revenue loss.Factor climate in the site selection of data centres and use natural conditions to cool down equipment;Improve
214、 energy efficiency and reduce cooling energy consumption through technologies including T-Block and high-efficiency air conditioning;Strengthen the heat resistance and resilience of electrical facilities,for example,adopt dual power supply cooling systems.Flooding Infrastructure and equipment damage
215、d by flooding and tropical cyclones leading to data loss and safety risks to employees;Temporary suspension of operation during flooding and tropical cyclones conditions may lead to revenue loss;Flooding and tropical cyclones can pose safety and health risks to employees.Factor flooding and water lo
216、cation in the site selection of data centres and office buildings;Build and maintain facilities to cope with extreme weather,for example,flood gates,secondary drainage,sealed power and fibre ducts;Install servers,air conditioners,and other critical equipment in locations that meet the requirements f
217、or flood protection and wind resistance grades.Tropical cyclonesWater stress and drought The continuity of data centre operations is disrupted due to lack of cooling water during water stress conditions,which may lead to revenue loss;Alternative water procurement in the event of shortage of common w
218、ater may lead to increased operating costs.Factor water resource impacts in the site selection of data centres and office buildings.Adopt water-saving equipment and retrofit existing equipment for water saving to enhance the efficiency of water use;Install water reuse facilities to increase water re
219、cycling;Consider the availability of alternative water resources in case of water shortage,and install backup water facilities,including backup water trucks.Implementation of carbon emission reduction policies Data centres may be included into the carbon trading market,and the procurement of carbon
220、allowances for compliance may lead to an increase in operating costs;Increase of carbon sink price may lead to increased operating costs.Participate in the carbon trading market for compliance in accordance with the requirements where we operate;Strengthen internal carbon management,promote the deve
221、lopment of internal energy-saving and emission reduction technologies and explore internal mechanisms;Establish carbon sink purchase pilot programme and pay due attention to the development of emerging carbon sink technologies.Increased requirements on climate change action and disclosure Increased
222、investment in energy efficiency upgrades and emission reduction resulting from the tightening of carbon emission-related policies may lead to an increase in operating costs;Stricter climate disclosure requirements may lead to an increase in disclosure-related operating costs.Apply energy-saving tech
223、nologies to improve data centre energy efficiency and reduce Power Usage Effectiveness(PUE);Participate in green power trading,build our own renewable energy facilities,and increase the proportion of renewable energy;Disclose relevant information applying internationally recognised and established i
224、ndustry standards.Shift in market preference towards low-carbon products Increased market share by offering low-carbon products aligned with customer preferences and carbon neutrality targets;Increased revenue arising from providing solutions for a low-carbon digitalisation shift in the economy.Redu
225、ce the carbon footprint of our products and services,and provide low-carbon options to customers;Provide customers with digital low-carbon transformation solutions,including digital upgrades in the energy industry,to support the low-carbon digital transformation of different sectors.18Chapter 1 Envi
226、ronmental ProtectionOverviewCorporate GovernanceESG GovernanceAppendixChapter 2 Care for Our PeopleChapter 3 Protect Digital RightsChapter 4Create Sustainable Social ValueChapter 5 Business EthicsClimate Strategy and ActionCarbon NeutralityBiodiversity and Nature ProtectionMetrics and TargetsChapter
227、 1 Environmental ProtectionOur ApproachEnvironmental Governance and Risk Management1.4 Carbon NeutralityWe actively respond to the global climate action and Chinas target of peaking carbon emissions by 2030 and achieving carbon neutrality by 2060,and we are proactive in leveraging digital technology
228、 and the influence of our products to assist users,industries,and society in their low-carbon transformation.20222021 Carbon NeutralityAchieve carbon neutrality across own operations and supply chain by 2030 Green powerUse green power for of all electricity consumed by 2030Carbon Neutrality Targets1
229、00%Scope 1 and Scope 2Reduce by (from the 2021 base year)by 2030 Scope 3Reduce by (from the 2021 base year)by 2030Absolute GHG Emissions Reduction Targets 20232030In 2023,Tencents total GHG emissions were 5,793,823.7 tCO2e.Decarbonisation RoadmapWe follow the principle of emissions reduction and gre
230、en power first,followed by offsetWe explore and support the development of low-carbon technologiesImprove energy efficiencyPromote sustainable lifestyles to usersExplore carbon offset technologies and mechanismsExplore the application of low-carbon technologies for societyUse renewable energyProvide
231、 low-carbon digital solutions for industriesThrough its commitment to carbon neutrality,Tencent has clarified its ambitions for emissions reduction and has driven its own operations,as well as upstream and downstream industries,to take actions to reduce carbon.Carbon Neutrality Commitment In January
232、 2021,Tencent committed to achieving carbon neutrality and unveiled its carbon neutrality plan;In February 2022,Tencent released its 2030 carbon neutrality target which covers its supply chain,as well as its decarbonisation roadmap;In April 2023,Tencent refined its absolute emissions reduction targe
233、ts to cover Scope 1,2 and 3 emissions,which have been validated by the SBTi and are in line with the 1.5C goal.70%30%Assist users,industries,and society in transforming to a low-carbon futurePromote carbon neutrality in operation and supply chainCarbonNeutrality by 2030Scope 351.04%Scope 1,2 and 3 G
234、HG emissionsScope 244.21%Scope 14.75%Scope 3 emissions categoriesPurchased goods and services0.05%Capital goods17.60%Fuel-and energy-related activities(not included in scope 1 or scope 2)22.43%Upstream transportation and distribution0.34%Waste generated in operations0.03%Business travel4.35%Employee
235、 commuting1.30%Upstream leased assets53.83%Downstream leased assets0.07%19Chapter 1 Environmental ProtectionOverviewCorporate GovernanceESG GovernanceAppendixChapter 2 Care for Our PeopleChapter 3 Protect Digital RightsChapter 4Create Sustainable Social ValueChapter 5 Business EthicsClimate Strategy
236、 and ActionCarbon NeutralityBiodiversity and Nature ProtectionMetrics and TargetsChapter 1 Environmental ProtectionOur ApproachEnvironmental Governance and Risk ManagementReduce Carbon Footprint We continuously improve energy efficiency and integrate green and low-carbon considerations into our oper
237、ations,to constantly reduce the carbon footprints of our products and services.In compliance with the Environmental Protection Law of the Peoples Republic of China(PRC),the Energy Conservation Law of the PRC,and other applicable laws and regulations in regions where we operate,we continually reduce
238、carbon emissions emitted during our operations and construct green office buildings and green data centres.Green Cloud ComputingWe continue to work on energy saving and emission reduction in data centres,and are committed to helping the digital upgrading of real industries in an environmentally frie
239、ndly way.With the explosive growth of AI technologies in 2023,we recognise the importance of accelerating our carbon reduction initiatives in order to provide greener cloud computing services to customers and society.Adhering to the operation strategy of greener facilities,lower energy consumption,a
240、nd cleaner energy,Tencents data centres incorporate green considerations throughout their lifecycle,which covers the design,construction,operation,and other stages.Construction of Green Data Centre CampusWe follow the green site selection criteria for our data centres.We take into full consideration
241、 of:Climate conditions,which could help reduce energy consumption resulting from cooling demands during operations;Supply of renewable energy,which is needed to meet the green energy demand across operations;Physical climate risks to improve the climate resilience of our facilities.AI operationReuse
242、 of serversCooling system with higher energy efficiencyGreen energyT-BlockWe conduct environmental impact assessments and energy-saving assessments to evaluate the potential impacts of our construction and operation processes on soil,water,atmosphere,ecosystem,and energy consumption.We proactively d
243、evelop measures to minimise or avoid the severity of these impacts.Tencents fourth-generation data centre(T-Block)simplifies the construction process using modular technology.Through standardisation,productisation,and prefabrication,we can effectively shorten the construction period and reduce carbo
244、n emissions during construction.Meanwhile,T-Block data centres also adopt efficient cooling technology and power supply and distribution architecture to effectively reduce e n e r g y c o n s u m p t i o n d u r i n g operations,saving approximately 30%of energy compared to traditional data centre c
245、onstruction.We improve the performance of our servers to reduce energy consumption and carbon emissions while providing the same computing power.The overall performance of the new generation Star Lake servers is 120%higher than that of the previous generation,which grants our data centres the fundam
246、ental ability to provide cleaner computing power.20Chapter 1 Environmental ProtectionOverviewCorporate GovernanceESG GovernanceAppendixChapter 2 Care for Our PeopleChapter 3 Protect Digital RightsChapter 4Create Sustainable Social ValueChapter 5 Business EthicsClimate Strategy and ActionCarbon Neutr
247、alityBiodiversity and Nature ProtectionMetrics and TargetsChapter 1 Environmental ProtectionOur ApproachEnvironmental Governance and Risk ManagementEnhanced Energy EfficiencyTencent continues to optimise the energy efficiency of data centres to reduce the PUE by applying digital energy-saving techno
248、logies and energy-efficient cooling systems.AI energy-saving technologyWe adopt AI technology to intelligently regulate data centre operations and effectively improve energy efficiency.We have developed multiple AI algorithm models capable of summarising changes in IT data,terminal environmental dat
249、a,and outdoor weather data to optimise equipment operation.This enables us to optimise overall energy savings while satisfying the cooling demand.Using AI adjustment and optimisation technology can effectively reduce the PUE of data centre modules.In 2023,we further expanded the application scope of
250、 AI adjustment and optimisation technology.In 2023,the new modules applying such technology reduced electricity consumption by approximately 5,000 MWh,and avoided 2,851.5 tonnes of carbon emissions.Cooling system with higher energy efficiencyIn the operation of data centres,the air conditioning syst
251、em is the second largest energy-consuming system after the IT system.Therefore,we applied a cooling system with higher energy efficiency to reduce the energy consumption of air-conditioning systems.In 2023,our cooling system saved 20,000 MWh of electricity and avoided 11,406.0 tonnes of carbon emiss
252、ions.We have implemented a pilot programme to replace old air conditioners with low energy efficiency while ensuring the normal operation of the server rooms,which reduces the total power consumption of the server rooms.Intelligent operationWe establish and use the IDC Intelligent Operation and Main
253、tenance Platform to automatically collect and monitor data,and by employing intelligent algorithms to make PUE-based energy-saving management and energy consumption analysis for data centres,to achieve intelligent management of data centres.Moreover,we have introduced carbon management functions on
254、the platform,which can quantify the carbon emission data of each operation process in data centres,enhancing the refinement of carbon reduction management.To promote energy saving and carbon reduction along the value chain,we have shared the IDC Intelligent Operation and Maintenance Platform with ou
255、r suppliers so that they can also operate their data centres more sustainably and intelligently.In 2023,our cooling system saved 20,000 MWhof electricity and avoided 11,406.0 tonnes of carbon emissionsIn 2023,The new modules applying such technology reduced electricity consumption by approximately5,
256、000MWh,and avoided 2,851.5 tonnes of carbon emissionsBy the end of 2023,the LEED certifications of Tencents data centresTencent Huailai Ruibei Cloud Data Centre LEED O+M:DC Platinum Operation CertificationTencent Shanghai Qingpu Data CentreLEED O+M:DC Platinum Operation CertificationTencent Tianjin
257、Binhai Data CentreLEED O+M:DC Platinum Operation CertificationThe use of indirective evaporative cooling technology improves the energy efficiency of data centres.An energy saving rate of approximately 20%was achieved in a comparison experiment against typical operations.We have effectively reduced
258、the PUE of the data centre by optimising the parameters of the data centres heating,ventilation,and air conditioning(HVAC)system in the low-load server room,including adjusting the air-conditioning supply air temperature and chilled water temperature,implementing precision air-conditioning shutdowns
259、 and reducing the frequency of cooling water pumps.We use magnetic heat pumps to recycle the residual heat generated during the operation of data centres servers,which can transmit the heat to sites in need and avoid energy waste.Meanwhile,cooling water is used for cooling down server rooms to reduc
260、e the cooling load and water consumption of server rooms.21Chapter 1 Environmental ProtectionOverviewCorporate GovernanceESG GovernanceAppendixChapter 2 Care for Our PeopleChapter 3 Protect Digital RightsChapter 4Create Sustainable Social ValueChapter 5 Business EthicsClimate Strategy and ActionCarb
261、on NeutralityBiodiversity and Nature ProtectionMetrics and TargetsChapter 1 Environmental ProtectionOur ApproachEnvironmental Governance and Risk ManagementRenewable Energy TransitionWe continue to promote renewable energy transition.On one hand,we increase the procurement of renewable electricity,a
262、nd on the other hand,we construct more renewable energy power generation facilities on the rooftop of our data centres.Renewable energy facilitiesThe T-Block data centre has a flat and sizeable rooftop that can support a large capacity distributed rooftop photovoltaic(PV)system.The PV modules absorb
263、 solar energy and converts it into electrical energy,which will be directly supplied to the interior of Tencents data centre.Meanwhile,the PV panels reflect solar heat,reducing the cooling loads of data centres.In 2023,five of Tencents data centres,including the Tencent Tianjin High-Tech Cloud Data
264、Centre and the Shanghai Tencent Qingpu Data Centre,have connected their PV systems to the power grid,adding 32.6MW of installed capacity to renewable energy facilities.By the end of 2023,the total installed capacity of Tencents data centres renewable energy facilities reached 52.2 MW,an increase of
265、166.3%compared to 2022.Our first microgrid project was completed in 2023.The microgrid consists of distributed renewable energy facilities,energy storage facilities and other devices.It can address the issue of unstable power supply from PV facilities by storing energy when electricity demand is low
266、 and supplying stored energy when demand is high.In the Tencent Tianjin High-Tech Cloud Data Centre,the total installed capacity of the microgrid project is 10.54 MW,integrating PV,power storage,and power charging technologies.We also implemented AI energy management to predict power generation amou
267、nts and power demand,thus enabling intelligent adjustments to the systems.By the end of 2023,the total installed capacity of Tencents data centres renewable energy facilities reached 52.2 MW,an increase of 166.3%compared to 2022A total of 604,277.1 MWh of green power was purchased in 2023,a 79.6%inc
268、rease compared to 2022,avoiding carbon emissions of 344,619.2 tonnes Procurement of green powerSince 2021,we have been adhering to the principles of additionality,traceability and proximity in conducting green power trading.Additionality means that the green power is not subsidised.Additionality wil
269、l enable our green power procurement efforts to better promote the generation of renewable power.Traceability means that the green power can be clearly traced back to the source of the energy,ensuring compliance,transparency and sustainability of the source.Proximity means that we prioritise renewab
270、le energy projects that are geographically close to data centres during the process of energy procurement.This can reduce energy transmission losses and improve the efficiency of energy utilisation.Moreover,we regularly assess the green and low-carbon potential of rented data centres and share our e
271、xperience in reducing carbon emissions to drive them to increase their use of renewable energy and gradually decarbonise their entire value chain.The percentage of our renewable electricity increased from 7.2%in 2022 to 12.4%in 2023.In 2023,Tencent further expanded the usage scope and consumption of
272、 green power and three additional data centres have purchased green power.A total of 604,277.1 MWh of green power was purchased in 2023,a 79.6%increase compared to 2022,avoiding carbon emissions of 344,619.2 tonnes.22Chapter 1 Environmental ProtectionOverviewCorporate GovernanceESG GovernanceAppendi
273、xChapter 2 Care for Our PeopleChapter 3 Protect Digital RightsChapter 4Create Sustainable Social ValueChapter 5 Business EthicsClimate Strategy and ActionCarbon NeutralityBiodiversity and Nature ProtectionMetrics and TargetsChapter 1 Environmental ProtectionOur ApproachEnvironmental Governance and R
274、isk ManagementTo make our workplace more sustainable,we continue to take into consideration energy and resource efficiency throughout the design,construction and operation of our office buildings.Rooted in the pillars of green management,energy-saving procedures and energy-saving measures,we aim to
275、create a low-carbon work environment.Enhance Green ManagementDuring the design and construction phase of our office buildings,we adhere to the fundamental principles of safety and durability,health and comfort,environmental livability,occupant convenience,and resource saving.We require all our new b
276、uildings to be designed to meet international and local green building standards.After completion and operation,we continue to adhere to international standards to regulate our routine operations and maintenance.In 2023,we saved a total of 7,175.6 MWh of electricity and avoided 4,092.2 tonnes of car
277、bon emissions through energy-saving management measuresLow-Carbon OfficeFor the Tencent Shenzhen Headquarters Project currently under construction,we have implemented carbon reduction measures and established a comprehensive carbon monitoring system,with the completed plot certified as zero-carbon i
278、ndustrial park certification.Meanwhile,the Tencent Shenzhen Headquarters Project has set green building targets and carried out environmental impact assessments as well as energy-saving assessments.Management certificationTo reduce operational risks and standardise management,the management of our o
279、ffice buildings comply with international management systems standards,including ISO 9001(quality management system),ISO 14001(environmental management system),ISO 45001(occupational health and safety management system)and ISO 50001(energy management system)published by the International Organisatio
280、n for Standardisation(ISO).The operators of our office buildings are all certified with ISO 9001,14001,and 45001.Digital managementWe digitally manage buildings through the Facility Management Platform(FM Platform)and Building Automation System(BAS)to achieve intelligent monitoring and optimisation
281、of energy consumption.Through features including monthly energy consumption summary and analysis,anomaly monitoring and rectification,prediction,early warning,and control of the FM Platform,we have formed a closed-loop energy consumption management reporting system.The BAS provides real-time intelli
282、gent control of major energy consumption systems,including air conditioning,lighting,and ventilation,and regulates equipment based on demand,significantly improving energy efficiency.Refine Energy-Saving ProceduresTo further refine the management of energy-consuming equipment,we continue to improve
283、the management strategy on energy saving and consumption reduction,and continually optimise the Guidelines for the Operation of Energy-consuming Equipment based on actual operating condition of different offices.We constantly explore the carbon reduction potential of lighting systems and HVAC system
284、s,optimise lighting usage in public areas,restaurants,basements,and offices,and adjust the operation strategy of air conditioning during transition seasons.We have established an energy-saving assessment policy,which conducts monthly assessments on building operators and offers incentives or imposes
285、 penalties.For buildings that fail to meet the assessment standards,the operators must formulate and implement corresponding optimisation plans.By the end of 2023,the LEED certifications for Tencents self-owned office buildingsTencent Binhai TowersLEED BD+C:NC Gold Design CertificationLEED O+M:EB Go
286、ld Operation CertificationChengdu Tencent TowersLEED BD+C:NC Gold Design CertificationLEED O+M:EB Platinum Operation CertificationBeijing Tencent TowersLEED BD+C:NC Gold Design CertificationLEED O+M:EB Platinum Operation CertificationImplement Energy-Saving MeasuresWe regularly assess the energy con
287、sumption levels of office buildings and conduct specialised energy-saving retrofits on lighting systems and HVAC systems of buildings that have potential for improvement.In 2023,energy-saving retrofitting has reduced electricity consumption by 1,415.9 MWh and avoided 807.5 tonnes of carbon emissions
288、.23Chapter 1 Environmental ProtectionOverviewCorporate GovernanceESG GovernanceAppendixChapter 2 Care for Our PeopleChapter 3 Protect Digital RightsChapter 4Create Sustainable Social ValueChapter 5 Business EthicsClimate Strategy and ActionCarbon NeutralityBiodiversity and Nature ProtectionMetrics a
289、nd TargetsChapter 1 Environmental ProtectionOur ApproachEnvironmental Governance and Risk ManagementBuild a Low-Carbon Society In addition to focusing on our own operations and supply chain carbon emission,we also leverages our digital technology and influence of our products to help users,industrie
290、s,and society in transitioning to a low-carbon future.Explore Low-Carbon TechnologiesTencents carbon neutral strategy is not only a commitment to reducing its own energy consumption and emissions,but also an opportunity to drive R&D and innovative applications.We focus on internal technological inno
291、vation and stay abreast of innovative iterations of low-carbon technologies to achieve environmental sustainability and promote the societys green development.Building a Platform to Promote Low-Carbon Technology Innovation Tencent launched the CarbonX Programme to support the R&D and industrialisati
292、on of low-carbon technologies.The first phase of the Programme focuses on Carbon Capture,Utilisation and Storage(CCUS)technologies and has publicly solicited project proposals,with the first batch of 30 projects selected in September 2023.Demonstration projects:Support the first industrial use case
293、of cutting-edge technologies;Start-up projects:Accelerate the incubation of technology start-ups with financial potential;Capacity building projects:Innovative solutions aimed at significantly improving the digitalisation and intelligence of the CCUS industry.To promote the exchange and development
294、of low-carbon technologies,we have established TanLIVE,an open community for global climate technology sharing and cooperation.Additionally,we collaborate with leading companies,incubators,investors,and associations to drive the application of global carbon neutrality and climate adaptation technolo
295、gies.Exploring Carbon Storage CapabilitiesWe actively explore Nature-based Solutions(NbS)and utilize our own technological capabilities to support the development of projects.We invested our digital capabilities in the development of forest carbon sink projects and used our AI to enhance the algorit
296、hm model to help reduce the cost and improve the accuracy of carbon sink verification,thereby supporting small and medium-sized forest carbon sink projects.The methodology has been approved by the Ministry of Ecology and Environment of the PRC.We actively support in the development and implementatio
297、n of ocean carbon sink projects.In 2023,we participated in the development of Carbon Sink Measurement and Monitoring Method for Coastal Salt Marsh Ecosystem Restoration Project,which has been recognised by Guangzhou Emissions Exchange.We utilise digital technology to support the monitoring and measu
298、rement of GHG emission reductions from water-saving and drought-resistant rice(WDR)and subsequently promoting it to farmers and industries.Compared with conventional rice,growing WDR can significantly reduce methane emissions,improve agricultural climate resilience,help rice farmers increase both pr
299、oduction and income,and lower the difficulty of planting.Exploring Cutting-Edge Carbon Reduction Technologies Carbon dioxide storage in basalt:We have partnered with CarbFix,an Icelandic company,to explore the application of new carbon sequestration technology in China.This technology captures and d
300、issolves carbon dioxide in water,which is then injected into basaltic rocks and chemically converted into minerals fixing the GHG in the rock.In 2023,we completed the preliminary site selection and initiated the first phase of drilling and coring.Zero-energy radiative cooling technology to protect g
301、laciers:We collaborated with Nanjing University to develop materials radiative cooling with a nano-thin material developed from eco-friendly cellulose acetate for glacier protection.The technology will deflect the heat from direct sunlight away from the glacier.At the same time,the glaciers energy c
302、an be radiated outward through the porous material to keep temperatures low and slow down the melting rate.In 2023,we conducted an experiment on the Dagu Glacier and we saw that the solution has slowed glacier surface ablation by approximately 1-1.5 metres in one year.24Chapter 1 Environmental Prote
303、ctionOverviewCorporate GovernanceESG GovernanceAppendixChapter 2 Care for Our PeopleChapter 3 Protect Digital RightsChapter 4Create Sustainable Social ValueChapter 5 Business EthicsClimate Strategy and ActionCarbon NeutralityBiodiversity and Nature ProtectionMetrics and TargetsChapter 1 Environmenta
304、l ProtectionOur ApproachEnvironmental Governance and Risk ManagementPromote an Eco-Friendly LifestylePublic participation plays a pivotal role in driving societys low-carbon transformation.While serving a wide range of users,Tencent advocates for environmentally friendly behaviours and lifestyles th
305、rough innovatively popularising environmental protection concepts.We leverage digital technology to help individuals to make living an eco-friendly lifestyle more fun and convenient.In June 2023,we launched a personal low-carbon platform with our partners to quantify the action of taking eco-friendl
306、y commuting options,waste recycling,and other activities of Wuhan users.The reduced amount of carbon emissions can be exchanged for gifts and coupons,encouraging more users to reduce carbon emissions.To increase the awareness of climate change and encourage primary school students to adopt a greener
307、 lifestyle,we collaborated with the Center for Environmental Education and Communications of the Ministry of Ecology and Environment to create six scenarios in the Carbon Planet Weixin Mini Program.These scenarios allow students to digitally record their low-carbon behaviours through photo and text.
308、Carbon Island,a simulation and education game focused on environmental issues,invites players to build a thriving island that seeks sustainable economic growth,helps popularise carbon neutrality knowledge,and advocates for the concept of low-carbon life.By the end of 2023,the game has attracted over
309、 19.52 million people to participate.We launched a series of animation to popularise carbon neutrality knowledge in a concise and interesting way.At the same time,we invited experts from multiple authoritative organisations to provide in-depth analysis of carbon neutrality-related topics.The highest
310、 viewership of a single episode exceeded 10 million,with the total series surpassing 100 million views.Promoting carbon inclusion with digital technologyRaising environmental awareness via gamesEmpowering teenagers to make low-carbon choicesPopularising carbon neutrality knowledge19.52 million peopl
311、e10 million,with the totalto participateseries surpassing 100 million viewsBy the end of 2023,Carbon Island has attracted over The highest viewership of a single episode exceeded 25Chapter 1 Environmental ProtectionOverviewCorporate GovernanceESG GovernanceAppendixChapter 2 Care for Our PeopleChapte
312、r 3 Protect Digital RightsChapter 4Create Sustainable Social ValueChapter 5 Business EthicsClimate Strategy and ActionCarbon NeutralityBiodiversity and Nature ProtectionMetrics and TargetsChapter 1 Environmental ProtectionOur ApproachEnvironmental Governance and Risk ManagementGreen PaymentAs mobile
313、 payment popularises and the concept of green payment spreads,green payment has become an integral part of societys low-carbon transformation.We constantly expand the application scenarios of green mobile payment:Use electronic invoices and boarding passes instead of paper ones;Provide online servic
314、es,including virtual medical consultations and digital utility bill payments,to reduce carbon emissions from commuting.Remote WorkTencents cloud products can provide solutions for entreprises that offer hybrid and remote work models,which can effectively reduce carbon emissions.Online meetings:Tence
315、nt Meeting offers online document collaboration,real-time screen sharing,instant messaging,and other functions,which help improve meeting efficiency,save on travel expenses,and reduce paper waste.In 2023,Tencent Meeting launched the carbon credits centre to quantify users low-carbon behaviours and c
316、onvert them into credits,encouraging low-carbon practices.Online documents:Tencent Docs supports cloud storage and multiple users to collaborate and edit on the same online document,which can effectively reduce carbon emissions while improving users productivity.Emission reductions resulting from us
317、ing online documents mainly come from:lower carbon emissions compared to local storage,reduced carbon emissions during file transmissions,and the facilitation of mobile editing,which consumes less energy.Digital Solution for Energy ManagementTencent is exploring digital solutions to assist entrepris
318、es in improving efficiency and intelligent decision-making for energy management.We have comprehensively upgraded our products and platforms that connect different business partners to further reduce carbon emissions.Through the big data module on energy,Tencent EnterLink,we help entreprises to moni
319、tor and manage environmental metrics,including energy consumption and carbon emissions,to achieve more effective energy management and reduce impacts on the environment.In 2023,the Smart Energy Ecological Platform we jointly developed with our partners based on Tencent EnterLink was utilised by thre
320、e zero-carbon industrial parks.By adopting Tencent EnerCarbon Studios carbon engine and other entreprises energy consumption management solutions,we assist entreprises in monitoring their production,equipment,quality and energy consumption.This enables entreprises to identify key sources of emission
321、s,develop and implement targeted emissions reduction measures,and achieve energy conservation and carbon reduction.In 2023,Tencent EnerCarbon Studio attracted 56 entreprises and 49 products were launched.The application of digital technology plays a key role in improving industrial efficiency,saving
322、 energy,and reducing carbon.As a result,we apply our digital technology to assist the industry in its low-carbon transformation journey.Empower Industries to Transition to a Low-Carbon Future26OverviewCorporate GovernanceESG GovernanceAppendixChapter 2 Care for Our PeopleChapter 3 Protect Digital Ri
323、ghtsChapter 4Create Sustainable Social ValueChapter 5 Business EthicsClimate Strategy and ActionCarbon NeutralityBiodiversity and Nature ProtectionMetrics and TargetsChapter 1 Environmental ProtectionOur ApproachEnvironmental Governance and Risk Management1.5 Biodiversity and Nature ProtectionWe bel
324、ieve that the application of digital technology can play a key role in biodiversity as well as ecological conservation.In 2022,Tencent issued our Biodiversity Statement according to the UNSDGs,the Convention on Biological Diversitys(CBD)Kunming-Montreal Global Biodiversity Framework,and Chinas Ecolo
325、gical Conservation Strategy.We are committed to reducing our dependency and impact on nature,developing digital products for species and ecological conservation,and generating positive nature impacts.Assess Nature-Related Dependencies,Impacts,Risks and OpportunitiesTencent refers to the TNFDs LEAP f
326、ramework and the guidance of the Science Based Targets Network(SBTN)to identify and assess our nature-related dependencies,impacts,risks and opportunities.Through the assessment,we gain further understanding of how to reduce the natural dependencies and impacts of operations and supply chains and re
327、fine our strategies for biodiversity conservation.Locate Tencents Interface with NatureThe purpose of an interface with nature assessment is to understand how Tencent interacts with the natural environment and screen for sensitive locations.We carried out a screening state of nature assessment for T
328、encents major operating sites using geospatial analysis.The screening assessment is based on three criteria recommended by the TNFD:biodiversity importance,ecosystem integrity,and water physical risk.Biodiversity importance:We screened our assets against critical habitat1,biodiversity hotspots2,and
329、mean species abundance3 for areas known for their abundant biodiversity;Ecosystem integrity:We used ESRI Sentinel-2 Satellite Imagery4,Ecoregion and Nature Needs Half Ecoregions5 for screening areas with high ecosystem integrity;Water physical risk:We mapped our sites against the data layers of 100
330、Priority Basins6 and Baseline Water Stress7 to screen for high water risk areas.Evaluate Impacts andDependenciesWe have assessed key impacts and dependencies on nature in our direct operations,upstream and downstream value chains using ENCORE8 and SBTN Sectoral Materiality tool9.The assessment cover
331、s five main nature impact drivers,including land,water,and sea use change,resource exploitation,climate change,pollution,and invasive species,as well as four main dependency categories,including direct physical input,production process enabler,direct impact mitigation and protection from disruption.
332、Assess Nature-Related Risks and OpportunitiesIn the assessment phase,we analysed nature-related risks and opportunities covering our major assets.We leveraged the data and analysis from the WWF Risk Tool10,considering factors including location,industry,and asset data to assess nature-related physic
333、al and transitional risks and opportunities.The assessment involves analysis of various dimensions of nature-related risks and opportunities and takes into account the impacts of Tencents operations on ecosystems,wildlife,and biodiversity,as well as dependencies on natural resources.1 Global Critical Habitat Screening is categorised as unclassified,potential,or likely based on critical habitat cri