1、0203IntroductionThis annual ESG report is the fifth public release by ZTO Express(Cayman)Inc.The annual report for 2020 was published on March 15,2021,with the approval of the Board of Directors(BoD).CoverageThe report covers ZTO Express(Cayman)Inc.and its subsidiaries.For readers convenience,“ZTO E

2、xpress Group”,ZTO Express,ZTO,the Company,and We are also used to address ZTO Express(Cayman)Inc.and its subsidiaries as a whole.Time frameThe time frame of this report is consistent with that of the 2021 Annual Report of ZTO Express(Cayman)Inc.,which is from January 1,2021,to December 31,2021,unles

3、s otherwise specified.ReferencesThe report is prepared with reference to the Environmental,Social and Governance Reporting Guide(or ESG Guide)of Main Board Listing Rules of Hong Kong Stock Exchange(HKEX),China CSR Reporting Guidelines(CASS-CSR4.0)by the Chinese Academy of Social Sciences(CASS),SDG C

4、ompass-the guide for business action on the SDGs,and Sustainability Reporting Guidelines(GRI Standards)by the Global Reporting Initiative.Preparation Process The report is prepared with reference to the requirements of the above-mentioned standards and following the steps of peer comparison,informat

5、ion collection,information review,report writing,data review,management approval and report release,to ensure the completeness,materiality,facticity and balance of the report.DataAll data in the report are obtained from ZTO Express(Cayman)Inc.s files and statistical reports,which have been reviewed

6、by relevant departments.Unless otherwise stated,the financial data in the report are based on RMB.Quality CommitmentThe Company undertakes that the report does not contain any false records,misleading statements or material omissions and that the BoD of the Company is responsible for the facticity,a

7、ccuracy and completeness of the report.Access to the ReportThe report is available in simplified Chinese and English and is published in an electronic format,which can be accessed via https:/ case of any discrepancy between the two versions,the simplified Chinese version shall prevail.This report is

8、 to be read in conjunction with the 2021 Annual Report”of the Company.InformationWebsite:HQ address:1685 Huazhi Road,Huaxin Town,Qingpu District,Shanghai 201708Tel.:95311 Email:About the ReportBringing Happiness to More People through Our ServicesZTO Express(Cayman)Inc.2021 ESG ReportAbout the Repor

9、tChairmans LetterESG Statement from the BoDAbout ZTOCompany OverviewCore PhilosophyHonors&Awards 02060810101213CONTENTSAdapt to Changes-Keeping Abreast of Times and Connecting IndustrieDeliver the Future-Putting Ecosystem First and Benefiting Future Generations426303132343740A Responsible

10、 ZTO in FiguresPrudent Management and Governance of OperationProviding Quality ServicesDeveloping Intelligent LogisticsFocusing on Delivery SafetyDeveloping Global NetworksAccelerating Express Delivery Services into Villages and FactoriesA Responsible ZTO in FiguresEnhancing Green ManagementDevelopi

11、ng Green ExpressPracticing Green Concept42Reach Every Corner-Walking Together and Connecting Every Household4244485460A Responsible ZTO in FiguresAdvocating a Culture of“Shared Success”Caring for Employees Joining Hands with Partners for Win-Win Results Devotion to Public Welfare and Charity64646464

12、66Management of Social Responsibility Responsibility StrategyResponsibility GovernanceCommunication on Responsibility MattersMateriality IssuesFuture OutlookAppendixKey Performance Indicators(KPIs)Comments and Feedbacks676868710607On December 8,2021,the express delivery sector in China witnessed the

13、 arrival of the 100 billionth parcel,a milestone marking that Chinas express delivery industry has entered the“era of 100-billion parcels”and China has also embarked on a new journey from quantity-focused development towards quality-focused development.Based on serving the national development strat

14、egy and implementing the requirements of the State Post Bureau on the high-quality development of the industry,ZTO Express took up the responsibility to ensure the smooth running of the national economy and strived to play a greater role in serving production and life,promoting consumption upgrade a

15、nd smoothing economic circulation,and contribute to Chinas development for a new era.To pursue high-quality development,we started the engine for development.2021 marks the first year for the implementation of Chinas 14th Five-Year Plan(14th FYP),the first year for China to set out on anew journey o

16、f building a modern countryin all aspects,and the first year to develop aneconomic development pattern that takes domestic development as the mainstay,with domestic and international development reinforcing each other.To contribute to the implementation of the 14th FYP,ZTO Express strived to explore

17、 high-quality development mode,focused more on improving development quality and efficiency and optimizing structure,strengthened brand building,expanded and upgraded service and product offering,and forged ahead in the course of contributing to high-quality development of the country.To pursue high

18、-quality development,we stepped up to fulfill the mission of the industry.The express delivery industry is linked to the high-quality development of the economy and society on one end and the peoples aspiration for a better life on the other.ZTO Express stepped up to fulfill the mission of industry

19、development,adhered to the cultural gene of integrity,sharing,fairness,win-win cooperation,and not letting partners suffer,and adhered to the value of shared success.The Company insists on joining hands with every employee to grow and develop together with the Company.The Company is committed to cre

20、ating a harmonious partnership featuring close link,high loyalty and mutual success,advocates and practices the concept of a community with a shared future and strives to contribute to the healthy development of the industry.To pursue high-quality development,we stepped up to take our responsibility

21、.In response to Chinas major strategic decision of carbon peaking and carbon neutrality,ZTO actively explored the feasibility of voluntary emission reduction(VER)projects and methodologies in the express delivery industry to fulfill our environmental responsibility as a corporate citizen with concre

22、te actions.At the same time,ZTO Express actively responded to the call of the State Council and the State Post Bureau to promote express delivery to villages from the aspects of organizational leadership,network layout,policy support and resource integration,promote rural revitalization and meet the

23、 needs of the people for a better life and common prosperity.ZTO played its role in serving industrial development,driving employment and caring for ordinary workers,and demonstrated our commitments as a responsible corporate citizen.In the future,ZTO will continue to bring into play the fighting sp

24、irit,and do our own work well,solidly and effectively.ZTO will strive to achieve significant profit growth while leveraging our advantages in capacity and operation management.ZTO will continue to promote technological innovation,digital operation and IT-based management and accelerate ecological de

25、ployment and coordinated development.In a new market and policy environment,we will adhere to the generalprincipleof seeking progresswhile keeping performancestable,implement the new development concept,work hard and strive for excellence,create a new model of high-quality development,and make new c

26、ontributions to building a modern country in all aspects.Chairmans LetterAs China Enters the“Era of 100-Billion Parcels”,ZTO Express Keeps Moving Forward Towards High-Quality Development”ZTO Express(Cayman)Inc.2021 ESG Report(2nd Draft)ZTO Express(Cayman)Inc.2021 ESG Report 0809In 2021,the parcel vo

27、lume of ZTO Express reached 22.3 billion,and the Company continued to expand its leading market share while improving the quality of its operations.Recognizing the significance of good corporate governance in enabling the Company to become a world-leading comprehensive logistics service provider,ZTO

28、,based on the“shared success”culture,actively manages the ESG matters,which are critical to the Companys sustainable development.The Board of Directors(BoD)of ZTO Express is the supreme decision-making body for ESG matters.Considering the economic and social environment and the corporate strategy,th

29、e BoD of ZTO Express discusses and identifies ESG-related risks and opportunities,reviews major ESG topics and matters,and considers the management and improvement of key ESG issues as part of the Companys overall strategy.In March 2021,the BoD established an ESG Committee to assist the BoD in formu

30、lating and reviewing the Companys ESG policies and to propose recommendations on ESG-related matters.This report discloses in detail the progress and achievements about the companys ESG efforts in 2021.It was reviewed and adopted by the BoD in March 2022.ESG Statement from the BoDZTO Express(Cayman)

31、Inc.2021 ESG Report 1011Founded on May 8,2002,ZTO Express(Cayman)Inc.is a logistics conglomerate integrating multiple services including domestic and international express delivery,less-than-truckload(LTL),commerce,warehousing,cold chain,finance,aviation,intelligent technologies and media.On Oct.27,

32、2016,ZTO Express(Cayman)Inc.was listed on the New York Stock Exchange(NYSE),creating unprecedented global visibility for the Chinese express delivery industry.On Sep.29,2020,the Company was listed on the main board of the HKEX,making ZTO Express the first Chinese express delivery company listed in b

33、oth the United States and Hong Kong,China.ZTO has grown into the largest express delivery enterprise in the world in terms of parcel volume.In 2021,ZTO achieved a 31.1%year-on-year growth with a parcel volume of 22.3 billion,above the industry average.The Company ranked No.1 in the industry for six

34、consecutive years and captured 20.6%of the market share.ZTO Express has the largest network with the most extensive,the most intensive and the deepest coverage among the private operators in China.As of the end of 2021,ZTO Express had over 30,400 service outlets,covering over 99%of cities and counti

35、es in China.ZTO Express has a globally leading operating capacity,owning 99 domestic sorting hubs equipped with more than 385 sets of automated sorting equipment.The Company promotes the usage of highly efficient 15-to-17-meter-long high-capacity trailer trucks,and owns over 9,000 trailer trucks out

36、 of approximately 10,900 line-haul vehicles.In the course of development and growth,ZTO Express has been actively fulfilling social responsibilities with a full range of practical actions.The Company makes unremitting efforts in such aspects as green development,safety and security,and rural revital

37、ization,repays the society and spreads positive energy of the industry through a wide range of public welfare activities,including disaster relief,helping and supporting students in need,free transport and delivery of anti-epidemic materials.About ZTOCompany OverviewAs of the end of 2021a parcel vol

38、ume of domestic sorting hubs equipped covering over22.3billion99automated sorting equipment385sets of 99%10,900of cities and countiesZTO Express had over30,400service outletsline-haul vehiclesZTO Express(Cayman)Inc.2021 ESG Report 1213Honors&AwardsMission Bringing happiness to more people through ou

39、r servicesVision Becoming a respected enterprise with dignity,sustainability and longevity for centuries to comeCore valuesShared success,trust and accountability,innovation and entrepreneurshipCorporate spirit Persistence,focus,and perseveranceTalent philosophyTalents are the hard powerManagement p

40、hilosophyFair,efficient,and result-orientedOperation philosophy Integrity,transparency and win-win resultsSafety philosophy Safety is benefitService philosophyAll for outlets,and all for customersDevelopment philosophyStable,strong,ambitious and change-seekingCore Philosophy20207090601Sha

41、nghai Municipal GovernmentShanghai Model Enterprises for 2019-2020China Federation of Logistics&Purchasing(CFLP)Third Prize,Science and Technology Progress Award of CFLPInstitutional InvestorMost Honored CompanyInstitutional InvestorBest ESGShanghai Postal AdministrationCivilized Unit of the Express

42、 Delivery Industry of Shanghai 2018-2019 Peoples Government of Qingpu District,ShanghaiTop 10 Service Enterprises of Qingpu District 2021 Zhitong Finance,China Galaxy Securities,RoyalFlushBest ESG Award of the 6th Golden Hong Kong Equities Awards 2022 Peoples Government of Qingpu District,Shanghai T

43、op 100 Enterprises of Excellence of Qingpu District 2021Talents Work Leadership Group,Qingpu District,Shanghai Outstanding Innovation and Entrepreneurship Talent Team of Qingpu District 2021China Express Association(CEA)2020 Special Contribution Award for Donation to Poverty Alleviation of the Expre

44、ss Delivery IndustryChina Express Association(CEA)Advanced Collective in Combatting COVID-19 in the Express Delivery IndustryManagement Committee of Fuchunshan Health City,Tonglu County,Hangzhou CitySocial Responsibility Fulfillment AwardFortune(Chinese Edition),CICC Wealth Management(394th)in Fortu

45、ne China 500 in 2021 10Kantar(48th)in Kantar BrandzTM Top 100 Most Valuable Global Brands 12China Federation of Logistics&Purchasing(CFLP)Chinas Top 50 Logistics Companies 2021 ZTO Express(Cayman)Inc.2021 ESG Report It was pointed out at the 2021 National Postal Management Conference that the whole

46、industry should adhere to the general principle of seeking progress while maintaining stability,embrace the new development concept,focus on deepening supply-side structural reform,seek driving forces from reform and innovation,and pursue high-quality development.The project of“extending express ser

47、vices to villages and factories and to overseas markets”was further promoted.ZTO stayed committed to its original aspirations of quality development,achieved superior quality of service(QoS)and profitability based on its efficient and solid operations.ZTO utilized new technologies,invested in new eq

48、uipment,expanded value chains and developed the ecosystem to build up a comprehensive logistics service platform.ZTO served national strategic arrangements while optimizing business layout.ZTO continued to embrace transformation and increase efficiency and strived to promote the Companys transition

49、from large to large and strong.Adapt to Changes-Keeping Abreast of Times and Connecting Industries released 65 press announcements and related documents;received the visits of 1,000+domestic and foreign investment institutions;conducted 11,856 safety training sessions;carried out 155 emergency drill

50、s;invested more than 26 million yuan in intellectual property.A Responsible ZTO in FiguresIn 2021,ZTOAreasUN SDGsRisksChallengesAction PlanDecision-making riskLinking the executive compensation to ESG performance Set up an ESG CommitteeImprove risk management and internal control systemsBusiness eth

51、ics and anti-corruption QoS riskVehicle transport riskEnergy supply riskIP riskRisk in stability of service outletsInformation security riskSelf-drivingElectric trucksDark operationsIntegrated logistics servicesSmart routingUse automated sorting equipmentProtect customer privacyPromote high-capacity

52、 trucksProtect IPsCorporateGovernanceBusiness Development15Deliver the FutureReach Every Corner Adapt to Changes-Keeping Abreast of Times and Connecting IndustriesZTO Express(Cayman)Inc.2021 ESG Report 14The BoD of ZTO Express ensures the efficiency and effectiveness of the Companys operations by de

53、veloping appropriate risk control policies and procedures;continuously improves the operational system of the BoD,strengthens the functions and responsibilities of directors,and improves the efficiency of the BoD.The BoD has established 4 sub-committees:the Audit Committee,the Remuneration Committee

54、,the Corporate Governance and Nomination Committee,and the Environmental,Social and Governance Committee(ESG Committee),which are responsible for regularly developing and reviewing the corporate governance principles adopted by the BoD,as well as advising the BoD on matters related to corporate gove

55、rnance and the corrective measures,so as to ensure that the management and operation meet the compliance requirements and match the Companys development plan.Prudent Management and Governance of OperationZTO Express strictly complies with the requirements of the Company Law of the Peoples Republic o

56、f China,Securities Law of the Peoples Republic of China,Code of Corporate Governance for Listed Companies,Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited(Hong Kong Listing Rules)and other requirements.In light of the actual situation of the Company and from the p

57、erspective of achieving the Companys strategic goals and safeguarding the rights and interests of all shareholders,the Company continues to strengthen institutional construction and internal management,improve corporate governance structure,and standardize corporate operations.Corporate GovernanceTh

58、e General Meeting of Shareholders(GMS),the Board of Directors(BoD),the Board of Supervisors and the management have well-defined powers and responsibilities.The directors and supervisors of the Company work diligently.The management of the Company faithfully perform their duties,make scientific deci

59、sions,coordinate operations,and jointly ensure the realization of the overall strategic goals of the Company.Corporate Governance StructureRemuneration CommitteeAudit CommitteeCorporate Governance and Nomination CommitteeEnvironmental,Social and Governance CommitteeGeneral Meeting of ShareholdersBoD

60、ManagementAudit CommitteeResponsible for the selection,evaluation and supervision of the Companys independent audit;supervising the Companys annual audit and disclosure of quarterly results;supervising the accounting and financial reporting procedures,and managing the Companys internal risk control

61、system,ensuring the authenticity of the financial statements used by the BoD and published by the Company,so as to meet the compliance requirements.Assisting the BoD in supervising the Companys remuneration system and employees benefit plans,assessing and approving the remuneration structure,includi

62、ng all kinds of remuneration related to directors and senior executives.Remuneration CommitteeAssisting the BoD in selecting candidates who meet the qualifications as directors of the Company;advising the BoD on its composition,rules of discussion procedure,committee composition,and other related ma

63、tters;and supervising and evaluating the work of the BoD.Corporate Governance and Nomination CommitteeThe BoD of ZTO Express(Cayman)Inc.announced that the Company established the Environmental,Social and Governance Committee(ESG Committee)on March 16,2021,to assist the BoD in formulating and reviewi

64、ng the Companys ESG policies and advise the BoD on ESG-related matters in the Companys development.The ESG Committee is responsible for developing ESG performance indicators and linking the compensation of executives with ESG performance.ESG CommitteeZTO Express continues to improve the corporate go

65、vernance structure,execute strict internal control(IC)system,standardize information disclosure,stay connected with investors,and strives to maximize the long-term interests for shareholders.Safeguarding Shareholders Rights and InterestsZTO Express attaches great importance to maintaining and managi

66、ng investor relations(IR),and strictly abides by the information disclosure obligations under the securities trading rules of the United States,Hong Kong Listing Rules,NYSE Listing Rules and other applicable laws and regulations.We disclose the Companys major events,development and operation informa

67、tion,and other relevant information to the public in a complete and accurate manner.We also release announcements through official channels such as the IR website and press conferences to effectively protect investors legitimate rights and interests.A dedicated Investor Relations department has been

68、 set up to hold roadshows and reverse roadshows regularly,receive investors,and answer questions and queries;stay connected with investors through a diversity of channels,including IR hotline,IR mailbox,GMS,communication with the management,investment summits,and teleconferences so as to help invest

69、ors gain a deeper understanding of the operation,business,development strategy and investment value of the Company.In 2021,ZTO Express published more than 65 press releases,announcements and related documents and received visits of over 1,000 domestic and foreign investment institutions.Standardizin

70、g Information DisclosureCommunicating with InvestorsZTO Express has developed a sound internal control(IC)and risk management system,which was put in place to facilitate the management and operations in line with the strategic goals.In 2021,the Companys management and control of major risks was soun

71、d,with no significant or material IC defects found,and no major risk or loss events occurred.Risk control Developing the Right Ideas of Internal Control(IC)The idea of putting IC first and taking compliance as the foundation is carried out through initiatives of standardized operation,process-based

72、management,tracking supervision,and digital assessment in the IC process,so as to implement the requirements on efficient,proactive,and pragmatic IC and compliance work.Strengthening Supervision and Inspection of Major Operations The Company strengthens the supervision and inspection of functional d

73、epartments,management centers and the business of service outlets,and carries out daily spot checks and special audits.Empowering Management Through TechnologyThe Company uses big data,AI,and other technological innovations to empower IC management,make IC management more information-driven,technolo

74、gy-driven and intelligent,and constantly improves the quality and efficiency of IC management.Continuous Compliance with Sarbanes-Oxley Act(SOX)In accordance with the SOX provisions,we update the risk control matrix of important business processes based on the Companys dynamics,focus on key risks in

75、 processes,test the design and implementation of internal controls,detect problems,and supervise their rectification to continuously meet the SOX compliance requirements.Optimizing and Upgrading of Risk Control SystemThe Company continues to improve the institutional frameworks and integrates the ri

76、sk control nodes into the business operation process by technological means;reconstructs the approval process,clarifies the approval contents and responsibilities,gives green light to normal matters,pays attention to abnormal issues,and provides decision-making support for management through data an

77、d reports.1617Deliver the FutureReach Every Corner Adapt to Changes-Keeping Abreast of Times and Connecting IndustriesZTO Express(Cayman)Inc.2021 ESG Report Integrity is the core business philosophy of ZTO Express.ZTO always strives to improve the integrity and anti-corruption mechanism.The Company

78、has formulated and publicly released the“Implementation Regulations of ZTO Express on Integrity Supervision”and the“Regulations of ZTO Express on Case Investigation and Handling Procedures”to strictly supervise discipline enforcement and accountability;the Company has formulated the Measures for Rew

79、arding Whistle-blowing to encourage employees to report misconduct,and to further promote the Companys integrity building;the Company carried out special events,such as improving the work style,strengthening discipline and improving efficiency and knowing and respecting the bottom line initiatives,s

80、o as to create a good atmosphere across the Company and provide a strong guarantee for the healthy and stable development of ZTO Express.On August 10th,2021,ZTO joined the Enterprise Anti-Fraud Alliance.ZTO upholds the vision of the Alliance-“building a clean China that influences the world”,strongl

81、y advocates the concept of honesty,strong internal control and anti-fraud,and continuously strengthens ethics building;the Company prevents disciplinary violations and illegal behaviors,combats corruption and advocates fairness and justice.Fighting Corruption and Promoting Integrity Obtained the cer

82、tification of IP management system Passed the certification of IP pilot enterprise in Qingpu District The conference on improving work style,strengthening discipline,and improving labors effective capability organized by the HQ Qian Jun,head of the Network and Integrity Supervision Office of the Pre

83、sidents Office,reporting on the special inspection of workstyle across the entire network A special training session for integrity supervisorsZTO strictly complies with the requirements of laws and regulations such as the Trademark Law of the Peoples Republic of China,the Copyright Law of the People

84、s Republic of China,the Patent Law of the Peoples Republic of China and the Law of the Peoples Republic of China against Unfair Competition and strengthens the management and protection of IPs such as patents and copyrights.The Company has developed an internal patent management system and respects

85、and protects the IPs of others in the business activities,including IT system development,production and operation,preparation of internal publications,official websites,public account operation,and corporate publicity.The Company has built an IP database to improve the efficiency of departmental co

86、llaboration.In 2021,the Company obtained the certification of IP management system and the certification of IP pilot enterprise in Qingpu District;the Company was granted 10 invention patents and 33 design patents;the total investment in IPs exceeded RMB 26 million.As of the end of 2021,the Company

87、had applied for a total of 698 patents.Protecting Intellectual Properties(IPs)the total investment in IPs exceededthe Company had applied for a total ofRMB26million698patents Management Centers holding training sessions on integrity building 1819Deliver the FutureReach Every Corner Adapt to Changes-

88、Keeping Abreast of Times and Connecting IndustriesZTO Express(Cayman)Inc.2021 ESG Report Providing Quality Services ZTO Express always adheres to the paramount principle of putting customer first”and is committed to providing quality and convenient services for customers.The Company provides 24-hour

89、 after-sales services through multiple channels,such as 95311 hotline,online assistants,cloud calls and intelligent customer service,to ensure smooth communication.The Company has established a closed-loop mechanism for handling all complaints through digital intelligence tools to identify problems

90、and stop losses in time.The Company has formulated the Service Supervision and Management Regulations.The SOPs are carried out with process visualization,from the creation to the completion of work orders.As for the after-sales problems such as loss and damage,we strengthen the process of intelligen

91、t monitoring according to the time limit of parcels,detect abnormal ones,intervene in time and settle claims promptly to protect rights and interests of complainants;we implement intelligent follow-up calls and intervene instantly to review and address customers dissatisfaction in order to ensure th

92、at problems are solved appropriately at last.Responding to Customer ComplaintsZTO Express always proceeds from the perspective of customers,optimizes and improves the existing service process,does its best for the interests of customers,and strives for the greatest satisfaction of customers.The Comp

93、any attaches importance to customers comments and feedbacks,and actively expands the channels for collecting customers advice and needs so as to listen to their suggestions in a bid to build a responsible brand image.While maintaining the leadership position in the industry in terms of profit and qu

94、ality,ZTO Express has long been ranked No.1 among“Tongda Operators”on the Cainiao Index,demonstrating a high level of customer satisfaction.The latest data from the 2021 Survey on the Satisfaction with Express Delivery Service and the Results of the Test on On-time Delivery Performance released by t

95、he State Post Bureau shows that for the first time,ZTO Express was ranked among the top in the“Tongda Operators”in terms of on-time delivery performance,proving that ZTO Express has maintained its hard power in terms of network capabilities and service performance against the background of a single

96、day average business volume of over 60 million parcels.Satisfaction SurveyAiming to protect data and privacy of hundreds of millions of consumers,ZTO Express insists on the guideline of“focusing on prevention,prioritizing management and technology,and exercising comprehensive controls”to protect the

97、 safety of user data and privacy.The Company has formulated the ZTO Express Data Security Management Regulation”,and the Management Measures for the Protection of Personal Information and other privacy policies and systems to regulate the consumer information and privacy security management process.

98、The Company has developed and implemented the supporting information security management responsibility mechanism to ensure that responsibilities are assigned to people and the supervision is in place,to identify the loopholes and fill the gap in a timely manner,and to prevent various information se

99、curity incidents from happening.Protecting Information SecurityZTO Express strictly restricts internal personnel from entering and querying users personal information and makes log records of all query behaviors;sets strict application security standards based on security levels;adopts category-base

100、d and class-based information management and carries out multi-dimensional supervision on the user activities concerning customer information in operation systems to ensure that information is protected from unauthorized access and destruction.ZTO Express constructs a multi-layered security protecti

101、on system to defend against external security attacks and protects customers information in all aspects by applying user authentication to prevent account borrowing,developing security risk control system to handle and intercept abnormalities in time,using data encryption for safe storage,and tracin

102、g the source of information leakage for emergency response.Applying Information Security TechnologyEnhancing Information Security AwarenessZTO Express regularly evaluates its information security management performance.The Company has passed the dual certification of ISO27001 and IS027701 systems an

103、d has established an information and privacy security management system covering the whole lifecycle of customer information collection,storage,use and transmission to ensure that the information security management capability and privacy management capability of the Company meet domestic and intern

104、ational standards.Information Security Assessment and Certification ZTOs Information System has obtained the national Multi-Level Protection Scheme(MLPS)record-keeping certificate ISO27701 Certificate ISO27001Certificate2021Deliver the FutureReach Every Corner Adapt to Changes-Keeping Abreast of Tim

105、es and Connecting IndustriesZTO Express(Cayman)Inc.2021 ESG Report ZTO Express actively builds a multi-layered express delivery product system,provides differentiated products and services,and enriches express product lines.Based on the positioning of on-time delivery commitment,delivery appointment

106、 by telephone,delivery to the door on demand,and compensation for late delivery,ZTO has developed new product offerings,such as ZTO Premium(next-day and 2-day delivery),ZTO Standard,and ZTO Expedited(next-morning and next-day delivery).At the same time,ZTO Express accelerates the development of ecos

107、ystem businesses such as aviation and cold chain to form a diversified,three-dimensional,full-chain service system to meet diversified and personalized market demands and build a comprehensive and integrated logistics service framework.Relying on the strong network and transportation resources,ZTO S

108、tandard provides customers with stable,safe and reliable high-quality services,featuring the collection and delivery within designated service scope and delivery time limit,standard pricing,and standard,same-day and next-morning delivery.ZTO StandardZTOs free privacy waybill serviceCaseZTO Express a

109、ttaches great importance to the protection of users privacy information and introduces the economical and eco-friendly one-sheet privacy waybill.The initiatives such as replacing the traditional static password by biometric identification technology,monitoring data usage and behavior of intranet hos

110、ts as well as access control are carried out to support the safe development of the ecosystem and effectively prevent the leakage of customers privacy information in the process of logistics and transportation.In December 2021,ZTO started to officially provide free privacy waybill service by default

111、 for all customers placing orders through the Companys channels.The waybills printed out through the ZTO Mini Program,Apps,and official website will hide the recipients and senders phone number by default.The courier can check the hidden user information through the system such as Zhangzhongtong if

112、such information is actually demanded in the collecting and delivering process.Some third-party last-mile posts or lockers,such as Cainiao and Hive Box,cant directly obtain the hidden information,but couriers can check the real user phone number in Zhangzhongtong app for delivery.Innovative Product

113、and Service OfferingZTO Expedited is a standard time-efficient product targeted at the mid-to-high-end customer segment.It features the centralized allocation of airline resources by the HQ,the collection and delivery within the designated service scope and delivery time limit and the support of on-

114、time delivery guarantee,standard service and fast claims.ZTO ExpeditedZTO Premium provides customers with VIP delivery services that are different from ordinary express delivery services and it supports delivery appointment by telephone and delivery to the door on demand.ZTO Premium2223Deliver the F

115、utureReach Every Corner Adapt to Changes-Keeping Abreast of Times and Connecting IndustriesZTO Express(Cayman)Inc.2021 ESG Report Developing Intelligent LogisticsUpholding the concept of Internet+logistics,ZTO Express closely connects independent R&D with the Companys strategy and business.The Compa

116、ny has developed more than 100 IT systems and digital tools,covering a full range of express business scenarios,and providing comprehensive R&D support for less-than-truckload business,international business,cloud warehousing,finance,commerce,and other ecosystem businesses.The Company has built an i

117、ntegrated management system of production and research in line with the current situation to facilitate the end-to-end high-quality and rapid delivery and lay solid foundation for the implementation of the Companys strategic digital transformation.The Company gradually improves the digital,connected

118、 and intelligent business map covering a full range of scenarios and across the whole chain and strives to develop the digital smart logistics across the whole chain from order placement to delivery.We provide customized services for small and medium-sized e-commerce sellers and corporate customers,

119、such as order acquisition,addition and import,as well as waybill printing and data statistics,and offer APP and Mini Program to provide efficient and convenient order placement channels to create one-stop express services of integrating order placement,query and payment.Convenient Order PlacementZTO

120、 has developed a customized tool for collection,delivery and signature of the couriers-Zhangzhongtong app,which provides personalized data support for the couriers based on user profiles,efficient allocation of resources,intelligent optimization of task scheduling,and collection and delivery routes.

121、Meanwhile,ZTO promotes the four-segment code on the basis of e-waybill to accurately aggregate the receiving address into the corresponding geographical unit,further improving the efficiency on the collection end.Efficient CollectionIn the process of parcel transportation,ZTO Express decomposes and

122、encodes the complex links of express network and adjusts the routing scheme and fleet dispatching plans in real time to achieve the optimal balance between timeliness and cost.With the online operation&management platform Galaxy,ZTO manages drivers,vehicles,goods and sites in an integrated manner,an

123、d visualizes the whole transportation process based on GIS technology,thus providing data support for management and decision makers across the entire chain.Intelligent TransportationIn the transit link,ZTO Express applies a large number of intelligent sorting equipment such as automatic sorting of

124、large and small parcels,flexible roller conveyor and dynamic weighing scale to reduce wear and tear of parcels during loading and unloading and the usage of packaging materials such as cushioning materials and tapes.Automated SortingZTO Express has launched express supermarkets,express lockers and l

125、ittle blue boxes(smart voice collection boxes)to provide users with diversified last-mile services.The Company has launched a variety of products for logistics distribution,including oil-electric hybrid drones and L4 autonomous driving vehicles.The Company offers logistics services by integrating dr

126、ones,autonomous driving vehicles,and first-mile intelligent collection boxes.Intelligent Delivery Conducting science popularization activities to disseminate knowledge on smart logistics Automated sorting2425Deliver the FutureReach Every Corner Adapt to Changes-Keeping Abreast of Times and Connectin

127、g IndustriesZTO Express(Cayman)Inc.2021 ESG Report Focusing on Delivery SafetyZTO Express continues to improve the safety management system and optimize the management and control framework,procedures and tools;establishes a tri-layer safety management model with safety officers at the front end,the

128、 leadership team at the middle end and the work safety management committee at the HQ.Vertically,the safety responsibilities of every role and every employee are clearly identified;horizontally,the management work covers each aspect of the operations so as to receive feedback,execute plans and respo

129、nd in time.The Company develops and constantly improves the work safety rules and regulations and safe operation rules,such as Safety Supervision and Punishment Regulations,Postal Route Safety Management Regulations,and Regulations on Accountability for Safety Accidents.The Company strengthens the c

130、onstruction of safety emergency response management mechanism,formulates emergency response plans such as the Public Health Emergency Response Plan,and standardizes emergency management and response procedures for safety accidents.The Company also regularly screens potential safety hazards to preven

131、t safety accidents.Enhancing Safety ManagementZTO Express strictly implements the“Postal Law of the Peoples Republic of China”,“Postal Industry Safety Supervision and Management Measures”,“Express Delivery Safety Operational Regulations”and other laws and regulations and strictly implements the thre

132、e safety requirements:Real-name pickup,Open-box Inspection,and Machine Examination.The Company signs the letter of commitments with network partners on the implementation of the three safety requirements to improve the safety of delivery.Implementing the Three Safety RequirementsWhen collecting parc

133、els,the staff in the outlets shall check the customers valid ID documents in accordance with the relevant regulations and ensure that the information on the waybill is consistent and valid with the information of the senders ID document and the contents inside.Real-name pickupWhen collecting parcels

134、,the outlets,in accordance with the relevant regulations,the outlet staff shall check whether the items sent by customers fall into the category of items prohibited and restricted from posting as stipulated in the Postal Route Safety Management Regulations.Once parcels are identified as prohibited o

135、r restricted items,the outlets shall reject such items.Open-box inspectionIn accordance with Postal Route Safety Management Regulations and the requirements of local postal administrations and other government departments,the express items collected and shipped by the Company shall be inspected thro

136、ugh security machines;during major events,100%security inspection is carried out in accordance with the requirements of the competent postal administrations;once prohibited items are found,it should be immediately reported to the Security Supervision Center following the reporting hierarchy;the outl

137、ets in special(politically sensitive)areas should carry out machine security examination according to the requirements of the local postal administrations or relevant departments.Machine examination Liao Jinrong,Deputy Director General of the State Post Bureau,visited Beijing Management Centre to su

138、pervise and inspect the safety and security work of the delivery channels for the 100th anniversary of the founding of the Party Three Systems Posters2627Deliver the FutureReach Every Corner Adapt to Changes-Keeping Abreast of Times and Connecting IndustriesZTO Express(Cayman)Inc.2021 ESG Report ZTO

139、 Express conducts pre-job training,safety training for operators,safety training during peak seasons,etc.,to strengthen employees knowledge and skills on work safety;carries out safety education and emergency drills to build and raise the safety awareness of employees;makes full use of the ZTO Magaz

140、ine,WeChat subscription account,Intranet and other channels,to disseminate office,operation,and postal safety knowledge.In 2021,11,856 safety training sessions were organized across the Company,with a total of 1,160,015 participants;155 emergency drills were conducted,with a total of 18,295 particip

141、ants.Carrying out Safety Education Campaignswith a total of1,160,015 Conducting monthly education and training on work safety Holding a Safety Committee meeting Holding the 2021 mid-year summary meeting on fleet safety and emergency rescue training session Conducting safety awareness education campa

142、ignsparticipants2829Deliver the FutureReach Every Corner Adapt to Changes-Keeping Abreast of Times and Connecting IndustriesZTO Express(Cayman)Inc.2021 ESG Report Developing Global NetworksThe postal and express delivery industry is fundamental to the development of a nation.In response to the natio

143、nal call to participate in the“Belt and Road”Initiative and the call of the State Post Bureau for“bringing express delivery services to villages and factories and going global”,ZTO Express actively implements the“go global”strategy.Relying on ZTO International,ZTO has rapidly built up the overseas n

144、etwork in Southeast Asia,broadened outbound channels and constructed overseas warehouses.The aim is to build a two-way logistics channel linking China and IndochinaPeninsula,to elevate the brand image overseas,to promote policy communication,road connectivity,trade flow,currency circulation and labo

145、r exchange,to enhance the well-being of the people of all countries and to build a community with a shared future.Accelerating Express Delivery Services into Villages and FactoriesIn response to the call of the State Council and the State Post Bureau,ZTO Express has set up a department responsible f

146、or the work of extending express delivery services into villages and formulated and implemented incentive policies to promote the implementation of the project.The Company promotes this project from the aspects of organizational leadership,network layout,policy support,and resource integration.The C

147、ompany explores innovative express+e-commerce mode by going deeper into the villages,provides services,such as stationing in villages,centralized collection and delivery,direct distribution lines,and e-commerce sales,to expand the sales channels of agricultural products,smooth the two-way circulatio

148、n channels between urban and rural areas,and contribute to rural revitalization.In 2021,the State Post Bureau and the Ministry of Industry and Information Technology(MIIT)accelerated the project of bringing express services into factories.ZTO is committed to creating a number of representative proje

149、cts in inbound logistics,integrated warehousing and distribution,regional supply chain services,embedded e-commerce,so as to reduce logistics costs of manufacturing enterprises and improve production and circulation efficiency.ZTO Express continues to promote this project and explore the new mode wi

150、th higher efficiency and lower cost.ZTO extends the service to the production and sales links of manufacturers to enhance the competitive edge of manufacturing industry.ZTO strives to achieve mutual integration and common growth and contribute to the development of local economy and society.As the a

151、rm for international business,ZTO International,with the goal of becoming a global first-class comprehensive logistics service provider,is committed to providing global customers with more convenient and efficient one-stop logistics supply chain solutions.As of the end of 2021,ZTO International had

152、established presence in Southeast Asia,the Middle East,Europe,the United States,Japan,the Republic of Korea,Australia and other countries and regions,and operated diversified,multi-category,cross-border logistics businesses such as bonded area services,direct mail,integrated warehousing&distribution

153、,and special line service.The Company has built up overseas networks in Cambodia,Vietnam,the Laos,Myanmar and other countries to directly serve the local markets and people with localized management.The annual business volume in the five African countries reached 3,224,600 parcels.Speedaf Expresssta

154、rted to operate in Egypt,Saudi Arabia,the United Arab Emirates,Pakistan and Bangladesh in 2021.By the end of 2021,its business had effectively covered the entire territories in Ghana,Uganda,Kenya,Nigeria and Morocco,and the total area of overseas warehouses in the five countries reached 7,000 square

155、 meters,making it a the leading brand of China-Africa express delivery services.In October 2021,it won the award of New Star of Cainiao Export Logistics Partner.In addition,in order to further promote the deployment of overseas network,ZTO International has achieved initial results in business diver

156、sification,product internationalization and service globalization,and established a“multi-channel,diversified and all-round”service model based on the multi-level market demands of B2B,B2C,C2C,and BBC.ZTO International On 22 May 2021,ZTO International launched a direct all-cargo flight from Kunming,

157、Yunnan to Yangon,Myanmar,combining ground and air transports to facilitate the development of cross-border e-commerce between China and Myanmar On 1 January 2021,ZTO Myanmar launched the first branch line in northern Myanmar-Mandalay to Taunggyi Internet shuttle,allowing more Myanmar users to enjoy

158、the convenient service of ZTO3031Deliver the FutureReach Every Corner Adapt to Changes-Keeping Abreast of Times and Connecting IndustriesZTO Express(Cayman)Inc.2021 ESG Report In order to practice the concept of innovative,coordinated,green,open and shared development,and contribute to carbon peakin

159、g and carbon neutrality goals,ZTO,as a member of the transportation sector,is committed to green and low-carbon development,accelerating the shift towards green and low-carbon transportation modes and strengthening green infrastructure development.ZTO makes efforts to gradually increase new-energy,i

160、ntelligent,digital and lightweight vehicles,and work on a green future in the transportation.Deliver the Future Putting Ecosystem First and Benefiting Future Generations put into use 14,457 recyclable express boxes;increased the ratio of e-commerce parcels without repackaging to 92.15%;had put in pl

161、ace a total of 24,000+packaging waste recycling installations;put into use a total of 18,549,204 recyclable bags;conducted 10 training sessions on ecological and environmental protection.A Responsible ZTO in FiguresAs of the end of 2021,ZTOAreasUN SDGsRisksChallengesAction PlanEnergy riskExtreme wea

162、ther riskCarbon emission risk in service processPolicy and regulatory riskPackaging waste management riskElectric truckPV power generationRecycling of packaging materialsDegradable packaging bagSet carbon targetsPromote paperless officeInstall waste recycling facilitiesExplore application of hydroge

163、n-powered vehiclesInstall PV power generatorsEnvironmental protection33Deliver the FutureReach Every Corner Adapt to Changes-Putting Ecosystem First and Benefiting Future GenerationsZTO Express(Cayman)Inc.2021 ESG Report 32ZTO diligently abides by the Environmental Protection Law of the Peoples Repu

164、blic of China,the Energy Conservation Law of the Peoples Republic of China and other applicable laws and regulations governing environmental protection.The Company has formulated framework documents such as the Green Procurement System of ZTO Express,established the Green Development Department led

165、by the executive vice president to coordinate the implementation of specific emission reduction work by various departments and regularly submit environmental protection information to the State Post Bureau and other regulatory agencies.ZTO,according to the requirements of the local postal administr

166、ations,has also established green and environmental protection teams that report directly to the HQ.ZTO establishes and improves environmental protection institutional mechanisms such as green standards,green publicity,green training,green system and green inspection,specifies the list of tasks and

167、work direction for collection,distribution,transportation,delivery and other operational links,and decomposes various green development tasks for implementation to promote the green development of the Company.As a leading express delivery enterprise,ZTO fully implements the 2582 Program proposed by

168、the State Post Bureau in 2021.As of the end of 2021,ZTO put into use 14,457 recyclable express boxes.The ratio of e-commerce parcels without repackaging reached 92.15%,the Company had put in place a total of 24,000 packaging waste recycling installations,and a total of 18,549,204 recyclable bags wer

169、e put into use.Enhancing Green ManagementGreen Management FrameworkEnvironmental Protection TargetsTechnical Innovation and Technical SupportTechnology and Information CenterDevelopment&Research CenterPublic Affairs Management CenterAssets Management CenterMarketing Management CenterHuman Resource M

170、anagement CenterOther Partners,etc.Packaging Management,Energy Saving and Emission Reduction of Production OperationsTraining and AssessmentCooperation with Industry,Academia and Research Institutes,Revisions to Relevant StandardsPublicity,Lead Public OpinionsGreen Site Construction and Green Office

171、Organizational Structure of Project Team on Energy Conservation,Environmental Protection and Green DevelopmentProject Team on Energy Conservation,Environmental Protection and Green Development Division of workExecutive Vice PresidentTeam Leader Certification of Environment Management System2582 Prog

172、ram A targeted campaign to address overpackaging and packaging bags containing heavy metals and specific substances beyond the standards；Ratio of e-commerce parcels without repackaging to reach 80%;a total of 18,549,204To put into use 5 million recyclable express boxes(cartons)at the end of 2021;To

173、add 20,000 new postal and express delivery service outlets with standard packaging waste recycling installations.recyclable bags were put into use3435Deliver the FutureReach Every Corner Adapt to Changes-Putting Ecosystem First and Benefiting Future GenerationsZTO Express(Cayman)Inc.2021 ESG Report

174、Responding to Climate ChangeWhile continuously improving the existing energy-saving and eco-friendly technologies and equipment,we have been tracking the consumption of energy resources and carbon dioxide emissions of the express delivery industry and are committed to contributing ZTOs solutions and

175、 approaches to the low-carbon development of the industry.As a logistics service provider,ZTO does not generate a large amount of hazardous waste or non-hazardous waste and oil pollution during its operations.According to the carbon emission conversion formula listed in the Greenhouse Gas Emission M

176、easurement Method for the Express Delivery Industry issued by the State Post Bureau in 2014,ZTO Express makes reasonable estimates of carbon emission data based on the Companys business model for four consecutive years.Although the total carbon emissions are still increasing due to the high growth o

177、f business volume,the carbon emission intensity calculated based on both revenue and business volume is on a decreasing trend as technologies advance and scale effect starts to unfold.In addition,ZTO Express continues to promote low-carbon development.In January 2021,ZTO Express joined the Science B

178、ased Carbon Target(SBTi)initiative launched by the World Wide Fund for Nature(WWF),CDP,World Resources Institute(WRI)and the United Nations Global Compact(UNGC)and submitted acommitment letter to setscience-based targets and actively respond to the carbon peaking and neutrality goals.At the same tim

179、e,ZTOs green development achievements were recognized by international rating agencies,with significant improvement in several international ESG ratings in 2021.Carbon Intensity ManagementClimate change is a major issue for the sustainability of the express delivery industry.In the context of Chinas

180、 carbon peaking and neutrality goals,the green development of the industry is in line with the requirements of sustainable development and will effectively contribute to the fulfillment of carbon peaking and neutrality goals.The impact of transportation on the environment and the challenges of clima

181、te change to business operations are also important to the Companys strategy.ZTO Express continues to control CO2 emissions in its operations through technology and management innovation,and carefully considers the risks and opportunities in sustainable development.ZTO Express promotes business depl

182、oyment with the concept of sustainable development and responds to the risks and opportunities of sustainable development with a risk management mindset.ZTO Express promotes the transformation of the express delivery industry into intensive,intelligent and green operations while achieving its own hi

183、gh-quality development.ZTO aims to become an influencer in addressing climate change.Climate Risk Identification and ResponseZTO Express cooperates with the upstream and downstream partners to enhance the energy conservation and emission reduction in the industry,promote greenhouse gas reduction in

184、the supply chain through green packaging,green procurement,and other measures and contribute to a clean environment.ZTO Express introduces environmental management in the links of packaging,transport and other procedures through green logistics,such as using new energy vehicles and electric vans sui

185、table for short-distance urban transportation at both pickup and delivery ends to reduce greenhouse gas emissions and air pollution,improve energy efficiency and reduce the harm caused by transportation to the environment.Developing Green Supply ChainPromoting Energy Conservation and Emission Reduct

186、ionDeveloping Green ExpressIn 2020,eight central government departments including the National Development and Reform Commission(NDRC),the State Post Bureau(SPB),and the Ministry of Industry and Information Technology(MIIT),jointly issued the Opinions on Accelerating the Green Transformation of Expr

187、ess Packaging”to promote the green revolution of parcel packaging.In 2021,it was pointed out in the report on the government work that it is imperative to promote the green transformation of parcel packaging.ZTO Express keeps promoting the green,reduced and recyclable packaging,and increasing the us

188、age of e-waybills,green and eco-friendly bags,eco-friendly cushioning materials.The Company actively recycles packaging materials,and guides consumers to re-use idle packaging to reduce waste.ZTO has set up a dedicated management team for dealing with excessive packaging and random packaging issues.

189、The team has conducted a thorough assessment of the situations in provincial management centers,sorting hubs and outlets.ZTO performs random checks to collect information about the actual use of packaging bags by outlets,controls the procurement channels and sources,and unifies the standards for pur

190、chasing packaging bags.ZTO stops outlets from purchasing bags containing heavy metals and specific substances beyond the standards for the purpose of cutting cost.Once found,unqualified bags will be recycled.The outlets that use a larger number of such bags will be notified and penalized.Green packa

191、ging terms have been added to the official websites service agreement and 2021 express service contract template to guide users to use green packaging and reduce the amount of packaging at source.Specifications are incorporated into couriers performance evaluation to strengthen their awareness of gr

192、een packaging.Green Sorting and PackagingE-waybillsSlim Tape”In 2019,the single-sheet e-waybills emerged.Compared with the traditional 5-sheet waybills,4 sheets of paper can be saved.As the end of 2021,the utilization of e-waybills reached100%.Green Recyclable Transfer BagsZTO Express has used green

193、 recyclable transfer bags in more than 90 sorting hubs and some outlets nationwide.Compared with the traditional disposable woven bag,the green recyclable transfer bag is strong and durable,can be reused more than 100 times,and saves more than 50%cost per use.As of the end of 2021,the utilization of

194、 recyclable transfer bags reached 98.62%on the entire network.ZTO Express gives priority to purchasing slim tape thinner than 45 mm that meets national standards,industry standards and relevant national regulations,and gradually promotes its usage throughout the network during production and operati

195、on.As of the end of 2021,the packaging ratio of slim tape reached 92.62%.Packaging RecyclingIn 2021,ZTO Express continued to promote the“Recycling Program”and had put in place a total of 24,000+packaging recycling installations across the network to promote the sorting,recycling,and reuse of packagi

196、ng.Recycling Installations3637Deliver the FutureReach Every Corner Adapt to Changes-Putting Ecosystem First and Benefiting Future GenerationsZTO Express(Cayman)Inc.2021 ESG Report ZTO Express implements the plan of the State Post Bureau to promote the comprehensive green transformation of the indust

197、ry,introduces environmental management into the transportation link,and reduces the impact of logistics and transportation on the environment in a bid to create a green logistics environment.Green TransportationZTO Express equips each shuttle truck withtheBeiDouNavigation Satellite System(BDS)equipm

198、ent and the Galaxy system,combined with Geographic Information System(GIS),to monitor abnormalities during transportation,optimize the driving routes and shifts of regular trunk and branch lines,and reduce additional energy consumption due to unreasonable routes.The Company adopts advanced algorithm

199、s to increase the load rate,and lower the departure frequency,which has effectively reduced the pollution.As of the end of 2021,there were approximately 3,700 line-haul routes across the whole network.Optimizing Line-Haul TransportationZTO Express continues to increase the scale of its green fleet,u

200、sing electric,hybrid electric,and fuel cell-powered green delivery vehicles.The Company introduces drones in remote areas to reduce the burden on ground transportation as well as unit energy consumption.The Company increases the coverage of self-pickup equipment and posts to shorten the frequency an

201、d distance of delivery.As of the end of 2021,there were 7,230 new energy vehicles(NEV)in the network.Last-Mile Green DeliveryZTO continues to increase the amount of automotive grade urea used in vehicles,conducts training about the performance of new vehicles and standard driving for all fleets,and

202、regulates the usage of automotive grade urea.The urea solution and nitrogen oxides undergo oxidation-reduction reaction in SCR catalytic reaction tank,resulting in discharginguncontaminated nitrogen and water vapor.The NOx emissions are therefore reduced,and exhaust gases are purified.Using Automoti

203、ve Grade UreaIn the line-haul transportation,the Company tries to use NEVs fueled by liquefied natural gases(LNGs).Compared with traditional fuel vehicles,the CO2 emissions in the exhaust of NEVs are reduced by about 20%and CO emissions reduced by about 97%.Using New Energy Vehicles(NEVs)In the line

204、-haul transportation,ZTO Express promotes high-capacity trailer trucks to improve energy efficiency and reduce pollutant emissions.Compared with the traditional 9.6-meter trucks,the high-capacity trailer truck reduces fuel consumption by 55%and reduces the pollutant emissions by over 70%.Moreover,th

205、e Company has gradually replaced iron truck bodies with aluminum alloy arc bodies.While upgrading capacity and reducing the weight,aluminum alloy arc bodies can effectively reduce fuel consumption.As of the end of 2021,the Company had over 9,000 high-capacity trailer trucks.Promoting High-Capacity T

206、railer Trucks3839Deliver the FutureReach Every Corner Adapt to Changes-Putting Ecosystem First and Benefiting Future GenerationsZTO Express(Cayman)Inc.2021 ESG Report ZTO studies and implements the ideas from those important documents of the State Post Bureau on green development and ecological and

207、environmental protection work and advocates the concept of green and eco-friendly development.The Company establishes a training system,carries out energy-saving publicity campaigns,and organizes training on energy conservation.The Company also carries out environmental public welfare campaigns to c

208、ontinuously enhance employees awareness of environmental protection.The Company conducts awareness-raising and publicity events to encourage services outlets and operators to use reduced packaging and eco-friendly packaging through incentive and guidance mechanisms.The Company makes efforts to promo

209、te ZTO Expresss guideline for green work to increase the awareness and engagement across the entire network.The Company carried out ecological and environmental protection training 10 times in 2021.Practicing Green ConceptGreen CultureZTO Express integrates the idea of green office into daily operat

210、ion and calls on all employees to build a resource-intensive and environment-friendly enterprise.ZTO promotes the use of clean energy such as solar energy in transit centers and implements paperless office through digital and smart system management.Starting from 2019,the Company installed air energ

211、y water heaters in the living area of the HQ,which consumes 1/7-1/4 of the energy of ordinary water heaters.The Company uses the industrial grid purification and power saving equipment across the network,which is expected to save about 8%of electricity.In the office,ZTO Express advocates reasonable

212、computer settings,including enabling energy-saving mode,turning off computers and monitors after work and prohibiting standby overnight.ZTO uses energy-saving lamps and installs intelligent controllers for lighting in some public areas.ZTO enables energy-saving mode for copiers or printers,strives t

213、o move office online as much as possible,avoids unnecessary copying or printing,and cultivates low-carbon habits in the office.Green OfficeZTO makes innovative use of our land and buildings by introducing cooperative enterprises to install and operate PV power generation equipment in some sorting ce

214、nters.The PV facilities generated more than 5 million kWh of electricity in 2021 and exported the excessive electricity to the state grid while providing the electricity needed for ZTO.In the future,ZTO plans to expand this model on a large scale,and by 2025,the annual PV power generation is expecte

215、d to reach 70 million kWh.Photovoltaic(PV)Power GenerationThe PV facilities generated more than5millionkWhby 2025,the annual PV power generation is expected to reach70millionkWh Zigong Transfer Centre in Sichuan launches the Green Recycling,Responsible ZTO campaign Launching Guarding Clear Water and

216、 Green Mountains Emoji Pack Participating in the National Urban Water Conservation Publicity Week campaign4041Deliver the FutureReach Every Corner Adapt to Changes-Putting Ecosystem First and Benefiting Future GenerationsZTO Express(Cayman)Inc.2021 ESG Report ZTO adheres to the core values of shared

217、 success,trust and accountability,and continues to promote employment and entrepreneurship.ZTO joins hands with partners for win-win cooperation and commits to grow together with employees.ZTO continues to carry out public welfare and charity activities,gives back to society with real moves,and spre

218、ads positive energy.ZTO has effectively demonstrated its brand value and the commitments to social responsibility.The Company always endeavors to fulfill its vision of becoming a respected century-old company.Reach Every CornerWalking Together and Connecting Every Household added a total of 1,356 ne

219、w jobs(including outsourcing)in the whole company;had a total of 23,865 employees in the HQ and directly-operated companies;achieved a 100%labor contract signing rate;had 1,297 members in trade unions;admitted 1,962 suppliers.A Responsible ZTO in FiguresIn 2021,ZTOAreasUN SDGsRisksChallengesAction P

220、lanIncompliant employment riskSocial welfare riskPay gap riskTalent loss riskOccupational health riskEqual development riskHuman capital empowermentOnline trainingLaddered talent managementManagement Trainee programDiversified talent recruitmentImproved social welfare protection systemImproved workp

221、lace safetyReasonable payReputation riskPublic safety riskCourier mutual assistance fundLast-mile delivery stationsEmployment opportunitiesDonations to help students in needCommitment to social welfareLabor&EmploymentCommunity Welfare43Deliver the FutureReach Every Corner Adapt to ChangesWalking Tog

222、ether and Connecting Every HouseholdZTO Express(Cayman)Inc.2021 ESG Report 42Employment is fundamental to peoples well-being and development.ZTO thoroughly implemented the guidance of government on the work to combat the COVID-19 pandemic and stabilize employment,effectively promoted the stabilizati

223、on and expansion of employment during the pandemic period,and increased production capacity in various regions,contributing ZTOs strength to the work of the government to advance stability on the six fronts(stability in employment,financial operations,foreign trade,foreign investment,domestic invest

224、ment,and expectations)and security in the six areas(security in job,basic living needs,operations of market entities,food and energy security,stable industrial and supply chains,and the normal functioning of primary-level governments).Advocating a Culture of“Shared Success”Promoting Employment and E

225、ntrepreneurship43 training sessions was organized in 2021,with81,703participantsBusiness Training for Outlets via Live WebcastThe Training and Culture Department,in accordance with the guideline of reducing costs and increasing efficiency,carried out extensive business training via live webcast for

226、managers,customer service representatives and salespersons of the outlets,including training on new QoS regulations,business training for early warning mechanism and promotion of the Companys projects,to extensively address some common issues in the outlets.43 training sessions was organized in 2021

227、,with 81,703 participants.In 2021,the Training and Culture Department,in collaboration with business elites from various lines of operation,conducted a total of five training sessions for fleet managers and five intensive training sessions for operation team leaders across the Company.This was the f

228、irst time that ZTO conducted such a large-scale offline business training across the Company,which played an important role in improving the skills of frontline managers in the outlets.Training on the Big Operation Segment Training on“Big Operations”SegmentsThe Company actively conducts training to

229、empower couriers and builds a courier platform(Zhangzhongtong system),and improves the business capabilities and skills of couriers through online and offline two-way interactions;t Company builds internal learning and consulting platforms such as ZTO Academy,Xiaoji Service Desk and think tank and s

230、ets up exclusive courses to improve couriers personal skills and service awareness in terms of operation specification,business training and skill improvement by empowering them to learn in fragmented time;the Company implements merit rating and performance evaluation,and selects the five-star couri

231、ers every month through the growth system and customizes exclusive uniforms and honorary certificates to enhance their sense of honor.Empowering Network Partners Training for the Management of OutletsIn 2021,the Company organized five regional offline training sessions on communication,leadership an

232、d execution in Shanxi,Chaoshan,Heilongjiang,Zhejiang and Tianjin,laying a solid foundation to address the personalized issues raised by the heads of the outlets in a targeted manner and effectively enhance the professional skills of frontline managers of the outlets.Training for the Management of Ou

233、tlets4445Deliver the FutureReach Every Corner Adapt to ChangesWalking Together and Connecting Every HouseholdZTO Express(Cayman)Inc.2021 ESG Report Aiming at building small yet efficient last-mile presence,ZTO Finance is committed to empowering outlets through a wide range of financial services,incl

234、uding loans,factoring,and financial leasing,to promote the sound development of express delivery,less-than-truckload,and other ecosystem businesses.ZTO Finance is a financing service platform for the ecosystem enterprises of ZTO Express.Since 2017,ZTO Finance has been providing financial services su

235、ch as financial leasing and factoring of accounts receivables for outlets,sale-leaseback financingof automated equipment and transportation vehicles owned by outlets,factoring with the transfer of existing account receivables of service outlets.The Company has successively launched a series of finan

236、cing products,such as project loan,site construction loan,equipment loan,working capital loan,special loan for pandemic response,special loan for peak season,and Tuxi loan to solve the financing difficulties faced by outlets and contribute to the sound development of the network.As of the end of 202

237、1,ZTO Finance had helped 2,232 outlets across 32 provinces,municipalities and autonomous regions by addressing their financing difficulties.ZTO Finance ZTO Academy App Service Quality Department of Guizhou Management Center Conducting Training on Empowering Service Outlets Training on Empowering Out

238、lets Organized by Hunan Management Center Certificate of Honor for Five-Star Couriers4647Deliver the FutureReach Every Corner Adapt to ChangesWalking Together and Connecting Every HouseholdZTO Express(Cayman)Inc.2021 ESG Report Caring for EmployeesZTO Express strictly abides by the Labor Law of the

239、Peoples Republic of China and Labor Contract Law of the Peoples Republic of China and other applicable laws and regulations,protects the legal rights and interests of employees,and is committed to creating a stable employment environment.As of the end of 2021,the total number of employees in the HQ

240、and directly-operated companies of ZTO Express reached 23,865,with 100%labor contract signing rate.Employees Rights and InterestsZTO Express adheres to the principle of equality and fairness in employment,and ensures that employees are treated fairly,regardless of their gender,age,nationality,race,r

241、eligious belief,family,health or other status.The Company does not allow any form of forced labor or child labor.The Company fully respects employees personal privacy rights and strictly keeps their personal information confidential.Equal EmploymentZTO Express implements the principle of setting sal

242、ary according to post and builds a rational remuneration system supplemented by corresponding performance evaluation system,which emphasizes position value,performance contribution,and individuals ability.Meanwhile,the Company provides benefits such as Endowment Insurance,Medical Insurance,Unemploym

243、ent Insurance,Maternity Insurance,Injury Insurance and Housing Provident Fund,and legal holidays.The Company also provides specific groups of employees with other benefits such as telephone fee subsidies,high temperature subsidies,food allowance,accommodation allowance and professional skills subsid

244、ies.Compensation and BenefitsZTO Express has issued and continues to improve the ZTO Express Trade Union Constitution to clarify the specific responsibilities of the trade union and its sub-committees;strengthens the organization of trade union and carries out various thematic activities regarding p

245、rotection of employees rights and interests;improves the consultation and communication mechanism,strengthens communication with employees,and listens to their requests.As of the end of 2021,the Companys trade union had a total of 1,297 members.Democratic ManagementZTO strictly abides by the relevan

246、t provisions of the“Occupational Disease Prevention and Control Law of the Peoples Republic of China.The Company has passed the certification of the occupational health and safety management system.Every year,ZTO Express regularly makes and distributes health brochures for seasonal diseases througho

247、ut the network;conducts health knowledge lectures in collaboration with Huaxin Health Center to enhance employees awareness of health and safety and protect their physical and mental health.Since the outbreak of the COVID-19,the Company has actively fulfilled its social responsibilities and responde

248、d to the national epidemic prevention and control measures by organizing personnel for vaccination,with a total of 10,819 employees vaccinated and 64 coaches arranged for the vaccination work.Occupational Health Certification of the Occupational Health and Safety Management System Employee health ch

249、eck-ups Beijing Management Center organizing COVID-19 vaccination for employees Distributing health bracelets to drivers of Shanghai fleet withlabor contract signing rate100%Free nucleic acid testing in multiple places4849Deliver the FutureReach Every Corner Adapt to ChangesWalking Together and Conn

250、ecting Every HouseholdZTO Express(Cayman)Inc.2021 ESG Report ZTO adheres to a“people-centered”principle in talent cultivation,implements the Groups echelon-based talent cultivation strategy,and provides various training courses to improve employees skills and abilities and effectively enhance their

251、core competitiveness.The Company has formulated the“ZTO Talent Promotion Management System”.In accordance with the five major principles of“equal emphasis on morality and performance,gradual promotion,combination of vertical and horizontal promotion,priority to internal staff,and reasonable allocati

252、on”,based on the span of control strategy,and in light of the diversified factors of talent growth,the Company has built up a career development mechanism of two lines:management category and professional category,and complements it with the corresponding promotion assessment and training mechanism

253、to help broaden employee career development channels,incentivize employees to keep improving professional skills and comprehensive quality,and enhance the core competitiveness of the Company and employees.Cultivating Talents Management CategoryProfessional CategoryM LineT LineP LineM1(Employee)T1P3/

254、P4M2(Team Leader)T2P5M3(Supervisor)T3P6M4(Deputy Manager)T4M5(Manager)T5P7M6(Senior Manager)T6M7(Vice Director/Deputy General Manager)T7P8M8(Director/General Manager)T8P9The Company continues to strengthen the training and management capabilities of the Baiyou Training Series,implements strict manag

255、ement and further improves the assessment and evaluation methods.In 2021,the Company continued to expand the number of trainees,with the number of trainees participating in Baiyou Flying Eagles and Eagles training programs increasing by 48.75%,allowing more employees to benefit from the Baiyou class

256、room.Baiyou Training SeriesThe Company adopts a combination of online knowledge learning+offline practical exercises and assessment for trainers training,shifting the focus from course lecturing to training exercises,assessment and on-site guidance,so as to further improve the practical ability of p

257、art-time trainers to conduct training,consolidate the trainers team,and provide a solid foundation for the implementation of training.Train the TrainersAs a key project of talent development of ZTO Express,the training program for management trainees is divided into three stages:role change,career a

258、dvancement and coaching&mentoring.Through systematic and personalized training approaches,ZTO Express strives to develop a team of future managers,who echo with the culture and values of ZTO Express and who have a high degree of loyalty,high potentials,strong resilience to stress,great influence and

259、 strong motivation.Training for Management TraineesCareer Development Paths of Employees Baiyou Training Series Train the Trainers Train Management Trainees5051Deliver the FutureReach Every Corner Adapt to ChangesWalking Together and Connecting Every HouseholdZTO Express(Cayman)Inc.2021 ESG Report I

260、n 2021,the Company launched a series of training programs such as Red Gravitational Wave Party History Training,Communication Training Camp,the training for the heads of reserve centers.These programs are independently developed by ZTOs internal trainers and are delivered offline by a team of senior

261、 trainers across the country.A large number of training sessions were conducted in a systematic manner,covering a wide range of audience.The face-to-face training by senior trainers created new experiences,new feelings and new gains to the trainees of each center and had exerted a great impact on th

262、eir personal leadership,execution,communication and mindset development.Special Talent Training Program Special Talent Training ProgramZTO organizes a series of cultural and sports activities such as Family Day,fun sports,birthday parties,and team building activities to balance employees work and li

263、fe and help them develop a positive mental outlook.ZTO pays attention to creating a sense of achievement,belonging and happiness for employees and enhancing their trust and love to ZTO as a member of the big ZTO family.Employee Care The HQ of ZTO International organizing activities in celebration of

264、 the New Year Organizing table tennis matches ZTO carrying out activities and distributing gifts in Dragon Boat Festival Cangheng(Cangzhou-Hengshui)Transit Center in Hebei held a tug-of-war competition Organizing cultural and artistic activities Hangzhou Center,Management Center in Zhejiang organizi

265、ng team building activities5253Deliver the FutureReach Every Corner Adapt to ChangesWalking Together and Connecting Every HouseholdZTO Express(Cayman)Inc.2021 ESG Report Joining Hands with Partners for Win-Win ResultsZTO has strict supplier selection and management procedures,clarifies the full life

266、 cycle management of suppliers from introduction,evaluation to exit,and standardizes supplier management and procurement behaviors.The Company effectively identifies risks,reduces environmental,social and safety hazards,and ensures the stability,efficiency and continuous improvement.Supplier Managem

267、entIn order to standardize the management of raw material suppliers,ensure continuity and stability in the procurement of raw materials,continuously improve procurement channels,reduce and control procurement costs,and prevent the procurement of inferior goods as well as the risk of malpractice and

268、fraud due to improper selection of suppliers and irregular authorization and approval,ZTO has formulated the Supplier Management System of ZTO Express Group to strengthen the legal supervision on procurement activities.The Company also established a supplier access and exit mechanism to optimize the

269、 supplier group.Strengthening Procurement ManagementGreen ProcurementZTO Express implements the strategic arrangements of the State Post Bureau on the ecological and environmental protection work,improves the green procurement framework,and promotes the green development,transformation and upgrading

270、.ZTO Express has formulated the Green Procurement System to identify the departments responsible for green procurement,implementation procedures,management norms,and so on.The Company has established a framework of corporate green procurement standards for different procurement categories and adopts

271、 the list-based management approach to drive suppliers to strengthen their environmental protection,safety and other social responsibility performance.Industry DevelopmentZTO attaches great importance to the development and empowerment with all partners and the coordinated development of the whole i

272、ndustry.Through university-enterprise cooperation,strategic cooperation and participation in industry meetings,the Company constantly explores new forms of partnership and works together with partners to build a sound industry ecosystem and promote the further development of the industry in a more s

273、table and solid manner.Supplier AccessSupplier Evaluation and ExitThe Purchasing Management Department fills in the basic information of suppliers and the type of business access,and collects and uploads access application materials;organizes inspections of new suppliers,and conducts comprehensive i

274、nspections from the aspects of supplier profile,production equipment,operating status,quality control,and actual use of products,to ensure that the suppliers meet the standards;if the suppliers are assessed as unqualified in the inspection,their entry will be stopped.The Company combines daily proje

275、ct management with annual evaluation to evaluate suppliers who have transactions with the Company during the evaluation period.The Company implements the graded classification management according to the evaluation results.In the case of a violation,the supplier will be immediately determined as unq

276、ualified,which shall be removed from the qualified vendor pool.ZTO Express attaches great importance to the compliance management of suppliers.The Company has published the Code of Conduct for Partners in the Supplier Cooperation module under the column of Partnership&Cooperation on the official web

277、site,and has integrated the requirements of compliance,honesty and integrity into the Code.The Company stipulates that the supplier who violates the Code of Conduct will be disqualified and banned from cooperation with the Company for three years.Integrity in ProcurementCode of Conduct for PartnersA

278、bide by the laws and regulations of the Peoples Republic of China.Be honest and trustworthy.Neither provide products and services that do not match in quantity and quality,nor provide false information and fake bills.Do not offer bribes to purchasing and receiving personnel,including but not limited

279、 to cash and non-cash gifts such as cash,vouchers,gifts and trips.Keep commercial secrets confidential and do not disclose the Companys commercial secrets such as procurement quantities and prices to other companies and individuals without permission.ZTO has the right to disqualify any supplier that

280、 violates the above provisions and will not purchase their products and services for three years.5455Deliver the FutureReach Every Corner Adapt to ChangesWalking Together and Connecting Every HouseholdZTO Express(Cayman)Inc.2021 ESG Report ZTO keeps promoting the development of university-enterprise

281、 cooperation projects,engages in in-depth exchanges with professors and students,and carry out intensive university-enterprise cooperation in the integration of industry and education,talent training,internship and employment.ZTO is committed to optimizing the cooperative talent training model to co

282、nnect university talents with the market and achieve win-win results for all parties.Professors and students from MEM Education Center,Tsinghua University visiting Chongqing Management Center Zheng Chao,Director of Marketing Center of the Group,sharing industry insights at College of Transportation

283、Engineering,Tongji University ZTOs Shanxi Management Center cooperating with Shanxi Engineering Vocational College to set up the ZTO Express Class majoring in logistics management Zhu Jingxi,Vice President of the Group,sharing ZTOs entrepreneurial history and technological development at Shanghai Ji

284、aotong UniversityUniversity-Enterprise CooperationZTO continues to enhance mutually beneficial industry cooperation and proactively promotes the landing of various cooperation projects.The strategic partners make full use of their advantages to further strengthen cooperation and industrial synergy i

285、n intelligent logistics,green logistics system,drone delivery,cross-border supply chain,and other areas,and enhance strategic collaboration and complementary advantages for mutual benefits and win-win results.On the afternoon of September 9,2021,ZTO Express reached a strategic cooperation agreement

286、with WeRide and JMCG.In this cooperation,WeRide and JMCG would join hands to manufacture WeRide Robovan,a L4-level self-driving truck,ZTO would provide a full range of logistics application scenarios,and the three parties would jointly carry out Robovans commercial pilot operation.Through this strat

287、egic cooperation,the three parties,with their respective resources,would jointly explore new modes of intelligent logistics,support customers multi-scenario needs in urban centers,urban villages and highways,and make efforts to promote the development of the integrated self-driving solution and join

288、tly build a new eco-system for intra-city logistics.ZTO works with partners to explore the innovative mode of intelligent logisticsCaseStrategic Cooperation5657Deliver the FutureReach Every Corner Adapt to ChangesWalking Together and Connecting Every HouseholdZTO Express(Cayman)Inc.2021 ESG Report D

289、eeper cooperation with Air Products and Chemicals,Inc.to jointly explore the use of hydrogen energy in the logistics industry Signing a strategic cooperation agreement with the State Post Bureau to jointly promote the healthy,orderly and intensive development of the industry The cooperation between

290、ZTO Cloud Warehouse and Dugood Luck(Shenzhen)Technology Co.,Ltd.enhancing the influence and voice of both parties in the field of cross-border supply chain Collaboration with Jowell Global Ltd.to explore a win-win situation in smart logistics and new community retail Tibet Management Center and Chin

291、a Telecoms Tibet Branch jointly promoting express-telecom cooperation Cooperation with Yitong UAV System to promote the development of UAV cargo delivery in China ZTO actively participates in industry events and conferences and engages in extensive and in-depth exchanges with various partners on bui

292、lding comprehensive advantages in logistics,improving comprehensive service capabilities of international express and logistics,and developing innovative application of smart technologies.The Company has promoted information sharing across the industry while increasing ZTOs business visibility and b

293、rand communication and bringing more customers and partners.Attending Industry Meetings Attending the 4th Digital China Summit&Exhibition Participating in the 22nd China International Food and Beverage Exhibition(SIAL China)ZTO Cloud Warehouse participating in the 16th China(Shenzhen)International L

294、ogistics&Supply Chain Fair Participating in the 7th Wuhan International E-Business and Internet Plus Industry Exposition5859Deliver the FutureReach Every Corner Adapt to ChangesWalking Together and Connecting Every HouseholdZTO Express(Cayman)Inc.2021 ESG Report Devotion to Public Welfare and Charit

295、yZTO has always taken devotion to the welfare of others and society as its corporate responsibility and fulfilled its social responsibilities while ensuring the normal operation of ZTOs outlets after the disaster.In 2021,we had encountered multiple disasters,such as shockwaves of COVID-19,flooding i

296、n Henan Province and the earthquake in Yunnan Province.ZTO immediately participated in the disaster relief and reconstruction work in the disaster-stricken areas.ZTO stood together with the affected people during the hard time,fully demonstrating the mission and responsibility that an excellent ente

297、rprise should take.On July 20,2021,Henan was hit by a heavy rainstorm.The ZTOers in Henan well fulfilled their social responsibility while helping the outlets in rescue and disaster relief.ZTO HQ immediately set up a special team for flood control and disaster relief and dispatched the team to Zheng

298、zhou,Henan province,to assist the local management center in flood prevention and control.On July 21,RMB 10 million was earmarked to support disaster-stricken service outlets and couriers in Henan and the transportation of public donations.On July 22,ZTO donated RMB 20 million to Zhengzhou Red Cross

299、 Society,which has fully reflected ZTOs corporate responsibility to assist services outlets and support couriers in need and give back to the society in the face of sudden natural disasters.Disaster Relief Assistance ZTO acted swiftly to donate 100,000-yuan anti-pandemic supplies to support the fron

300、t line of the pandemic in Ruili,Yunnan ZTO Yunnan procured relief supplies overnight to help Yangbi County,Dali Prefecture,Yunnan ZTO rushed to help transport relief supplies in Shanxi ZTO Cambodia donated anti-pandemic and living materials to a local orphanage Financial and Physical Donations to Di

301、saster-Stricken Areas in Henan6061Deliver the FutureReach Every Corner Adapt to ChangesWalking Together and Connecting Every HouseholdZTO Express(Cayman)Inc.2021 ESG Report ZTO pays attention to the education and development of future talents,takes social welfare as an important part of its developm

302、ent,supports education in poor areas through various forms,helps local schools improve their teaching environment,and brings hope to children and families with love.Supporting Students in Need ZTO HQ receiving 53 letters of thanks from the mountainous area of Yunnan Free delivery of hundreds of cart

303、oons of school uniforms and books to Rikaze,Tibet and Kashi,Xinjiang Shanxi Management Center working with volunteers in Longcheng to support students in need Chongfu Outlet,Tongxiang,Zhejiang delivering 10 cartoons of books to an elementary school in a remote area of XinjiangZTO is committed to car

304、rying out community activities in long-term collaboration with communities to promote the integrated development of enterprises,society and communities and fulfill our corporate social responsibility.Community BuildingWe stay true to our original aspirations and fulfill our social responsibility thr

305、ough charitable donations,contributing to the era that everyone can do charity.Charitable Donations The Safety Supervision Center of the HQ donating materials to Rehabilitation Center for Children with Disabilities,Huaxin,Qingpu,ShanghaiZTO encourages employees to participate in public welfare activ

306、ities in various forms,gives full play to their sense of corporate honor,mission for public welfare and social responsibility,and encourages ZTOers to give back to society and contribute to common prosperity.Volunteer Activities Carrying out the blood drive Providing delivery services for college gr

307、aduates Holding a public welfare hiking fund-raising activity titled“an eggs hiking journey”Calling on employees to voluntarily join the ranks of volunteers donating hematopoietic stem cells6263Deliver the FutureReach Every Corner Adapt to ChangesWalking Together and Connecting Every HouseholdZTO Ex

308、press(Cayman)Inc.2021 ESG Report ZTO Express(Cayman)Inc.2021 ESG Report 6465Management of Social Responsibility ZTO upholds the corporate spirit of persistence,focus,and perseverance,the corporate mission of bringing happiness to more people through our services,and the core values of shared success

309、,trust and accountability,innovation and entrepreneurship.ZTO integrates social responsibility into every aspect of our operations,develops a social responsibility strategy system with ZTOs characteristics from the perspective of stakeholders(government,shareholders,customers,partners,employees and

310、communities),and develops supporting annual plans to guide the Companys social responsibility work,including serving rural market,ensuring delivery safety,promote intelligent delivery and green delivery.ZTO grows together with employees,empowers partners,and actively integrates into communities.With

311、 a pioneering,innovative and pragmatic spirit,ZTO tries to contribute our wisdom and strength to the high-quality development of Chinas express delivery industry and fulfill the vision of becoming a respected enterprise with dignity,sustainability and longevity for centuries to come.Responsibility S

312、trategy Responsibility Governance To systematically promote the Companys work on sustainable development,ZTO has established a joint ESG and CSR working mechanism according to the industry characteristics and its own business and set up an ESG management group led by the Capital Markets Department a

313、nd a CSR management group led by the Public Affairs team.They are responsible for the management,promotion,decision-making and annual report preparation of the Companys strategic work on ESG and CSR.Each functional department at the HQ and each management center are responsible for implementing ESG

314、and CSR work within their respective mandates,collecting and organizing information,and supporting the preparation of ESG and CSR reports.Their work is guided and assessed by the Group.Working Groups on Sustainable DevelopmentZTOs responsibility governance framework is based on good corporate govern

315、ance and high ethical standards,and takes into account economic,social and environmental aspects in the business decision-making process at all levels.The Board of Directors takes full responsibility for the Companys ESG and CSR strategies making and reporting and discusses sustainability issues at

316、regular meetings.An integrated management system with management participation and horizontal coordination across multiple departments is established to promote the implementation of related ESG and CSR policies and initiatives and the disclosure of related information.The BoD is also responsible fo

317、r monitoring the Companys risk management structure and sustainability risks,including climate-and safety-related risks.Communication on Responsibility MattersZTO keeps a close eye on the requests and expectations of stakeholders.We keep exploring innovative ways to communicate with stakeholders and

318、 expanding communication channels.ZTO regularly publishes social responsibility reports,annual,interim,and quarterly reports,discloses corporate information in a rigorous,timely and accurate manner on the platforms of stock exchanges,official website,official WeChat account and mainstream media webs

319、ites.ZTO promotes communication between investors and shareholders,participates in industry forums and conferences,organizes exchanges with stakeholders,initiates or participates in social welfare activities,etc.ZTO builds a diversified internal and external communication platform to spread the Comp

320、anys ideas and social responsibility performance trends.While enhancing stakeholders understanding and support for the Company,we absorb reasonable opinions and suggestions from internal and external stakeholders,continuously improve the operations and management and enhance the overall competitiven

321、ess of the Company.StakeholdersKey Areas of InterestMeans of CommunicationFollow-up MeasuresGovernmentSafety and environmental protectionPaying taxes according to the lawJob creation Stable developmentGovernment-enterprise cooperationWork reportStatistical reportComply with laws and regulationsReduc

322、e the risk of work safety Implement the requirements of green deliveryRespond to the call of the governmentInvestorCorporate governanceBusiness performanceShare price performanceShareholder engagementShareholders meetingInformation disclosureField tripsStrengthen anti-corruption and risk managementC

323、ommitted to high quality and steady growthDo a good job in information disclosureKeep communication channels with shareholders openCustomerDiversified productsSatisfying servicesDelivery safetyInformation protectionCustomer eventsCustomer service channelsOnline platformCreate an ecosystem with diver

324、sified product offeringsImplement the three safety requirementsAddress customer complaintsProtect customer information securityEmployeeRemuneration and benefitsCareer developmentEmployee care Supporting the needyStaff meetingInternal platformDiversified activitiesEncourage internal mobility of talen

325、tsImprove HR policiesCarry out diversified employee activitiesHelp employees in need PartnerProtecting their rights and interestsMutual benefitsLong-term cooperationSharingHigh-level meetingAgreements&contractsProducts&servicesEliminate commercial briberyAdhere to integrity and good business ethicsC

326、arry out long-term business cooperationImplement responsible procurement CommunityHarmonious communityPublic welfarePublic relationsRural revitalizationCommunity communicationCharity activitiesCommunity buildingAssist disaster-stricken areasHelp and support students in needMake best efforts to preve

327、nt and control the pandemic Contribute to rural revitalizationZTO Express(Cayman)Inc.2021 ESG Report 6667To enhance the relevance and responsiveness of the report,ZTO gradually improves the identification and management of materiality issues.In the early stage of the report preparation every year,ZT

328、O constructs a model to select substantial issues based on two key dimensions:“relevance to corporate development”and“relevance to stakeholders”and through industry policy research,analysis of reporting standards and benchmarking with excellent reports.ZTO establishes a database of materiality issue

329、s,based on which ZTO develops a questionnaire on materiality issues.Afterwards,the key issues highly relevant to sustainable development of the Company and to the stakeholders will be sorted out as the key issues for information disclosure in the 2021 ESG report.Materiality Issues Analysis of Substa

330、ntial Topics51232022Relevance to StakeholdersRelevance to Corporate Development 4.004.104.204.304.404.504.604.704.804.904.104.204.304.404.504.604.804.70The year 2021 marked the100th anniversary of the founding of the Communist Party of China(CPC)and the first yearof

331、Chinas14th Five-Year Plan(2021-2025).In response to the call of the nation,ZTO placed emphasis on sustainability,kept improving our organizational structure,and strived to consolidate the leadership in business volume.ZTO fulfilled the social responsibility with our concrete development results and

332、delivered a satisfactory answer in 2021.In the coming year,we will strive to pursue high-quality development,focus on ensuring profitability with stable service quality,increase our market share,and ensure stable network operation.We will strive to diversify our service and product offerings,forge a

333、 last-mile ecosystem featuring close bonds,high loyalty and mutual reinforcement with our partners,optimize organizational structure,upgrade HR strategy,broaden pathways for green operations,and transform from quantity-based to quality-based development.We will continue to uphold the corporate mission of Bringing happiness to more people through our services,seize the opportunities of the times,an