On the morning of June 30, HCIG officially released its 2025 Environmental, Social and Governance (ESG) Report. As the Group’s first Chinese-English bilingual ESG report aligned with international standards, the report marks a new stage in HCIG’s ESG development, shifting from institutional framework building to the implementation of tangible outcomes, and provides a practical reference for state-owned construction enterprises in Hunan to advance sustainable development.

Zhou Zhikai, Deputy Director-General of the Hunan Provincial Department of Housing and Urban-Rural Development, and Tan Ding, Vice Chairman and General Manager of HCIG, attended the event and delivered remarks. Chen Kejun, Employee Director of HCIG, presided over the ceremony. Fang Zheng, General Counsel and Chief Compliance Officer of HCIG, provided a comprehensive interpretation of the key contents of the 2025 ESG Report. Relevant officials from the Office of Foreign Affairs Commission of the CPC Hunan Provincial Committee, Hunan Provincial Development and Reform Commission, Hunan Provincial Department of Commerce, Hunan Provincial State-owned Assets Supervision and Administration Commission, Hunan Sub-council of the China Council for the Promotion of International Trade, and the Tianxin District People’s Government, as well as representatives from industry associations, financial institutions, clients and suppliers, and experts from Dun & Bradstreet, were invited to attend the event.

As a leading state-owned infrastructure enterprise in Hunan, the systematic advancement of ESG development is an important strategic initiative for HCIG to implement General Secretary Xi Jinping’s important directives on the “dual-carbon” goals, improve modern state-owned enterprise governance, and support its international development. In June 2025, HCIG launched the comprehensive development of its ESG framework. Over the following year, the Group built its ESG system from the ground up, establishing a three-tier governance structure covering decision-making, management and execution; introducing ESG management policies and a five-year strategic plan; and developing a management system encompassing 157 indicators across three dimensions. These efforts have moved ESG principles beyond institutional documents and deeply integrated them into the entire process of project development, production and operations, and corporate governance, making ESG a shared commitment and an integral part of the daily actions of HCIG employees.

Zhou Zhikai congratulated HCIG on the release of the report. He noted that the report systematically presents industry-specific ESG practices and provides construction enterprises across Hunan with a replicable and practical model for sustainable development, fully demonstrating the social responsibility of state-owned construction enterprises. He expressed the hope that HCIG would remain committed to its original mission in housing and urban-rural development, deepen its engagement in green and low-carbon development, and demonstrate the strength of state-owned enterprises in building a Beautiful Hunan and creating livable cities and rural areas. He called for a clear understanding of the mission of ESG transformation in the construction industry, stronger commitment to the industry’s core responsibilities, full demonstration of the practical contributions of state-owned construction enterprises, and a clear focus on development goals to lead the green and high-quality transformation of Hunan’s construction industry. He said that the Provincial Department of Housing and Urban-Rural Development would continue to provide support and services through green construction policies, technical exchange platforms, and industry pilot and demonstration programs, fully supporting HCIG in further advancing its ESG development.

In his remarks, Tan Ding said that ESG has become a new benchmark for measuring the quality of modern corporate governance and a company’s long-term value creation capabilities. HCIG will remain mindful of the country’s fundamental interests, benchmark itself against world-class standards, and pursue its strategic goal of becoming a world-class construction and investment enterprise, while deeply integrating its ESG strategy with the Group’s 15th Five-Year Plan. The Group will focus on green construction, digital and intelligent transformation, overseas compliance, and value creation, advancing ESG from basic compliance management toward high-end value creation, and continuing to contribute greater HCIG expertise, solutions and strength to the green transformation of the construction industry, high-quality regional development, and international cooperation in infrastructure development.

Fang Zheng, General Counsel and Chief Compliance Officer of HCIG, provided an interpretation of the key contents of the 2025 ESG Report.

According to the report, it was prepared in strict accordance with the GRI Standards, the United Nations Sustainable Development Goals (SDGs), ISO 26000, and sustainability disclosure rules issued by the State-owned Assets Supervision and Administration Commission of the State Council and other relevant authorities. Adhering to the principles of “high standards, comprehensive coverage, and authenticity and traceability,” the report establishes a disclosure framework that combines an international perspective with the characteristics of state-owned enterprises and the infrastructure industry. It comprehensively discloses HCIG’s ESG performance and practices in 2025 and features three special sections: “Strengthening the Foundation and Serving National Strategies,” “Innovation Leadership and Developing New Quality Productive Forces,” and “Going Global and Building a Green Silk Road Together,” systematically showcasing the Group’s sustainable development achievements throughout the year.

At the launch ceremony, Michelle Mak, Chief Sustainability Expert of Dun & Bradstreet Asia Pacific, delivered a keynote presentation on international ESG standards for the infrastructure industry and the transformation of sustainability into business value. Three subsidiaries of HCIG—SHICO, Sino-Hunan Capital, and Zhongxiang Intelligent Construction—shared case studies highlighting their ESG practices in green overseas development, green finance, and intelligent construction, respectively.

Looking ahead, HCIG will align its ESG development plan with the Group’s overall 15th Five-Year Plan, focusing on key areas including green construction, digital transformation, and compliant overseas operations, and steadily shift ESG from basic management toward value creation and enablement. The Group will continue to enhance its ESG management capabilities and improve its information disclosure practices in line with mainstream international disclosure standards. It will continue to enhance and upgrade its digital carbon management platform, systematically develop green and low-carbon industries, and coordinate ESG development across domestic and overseas operations. By working with partners throughout the industrial chain to build a sustainable development ecosystem, HCIG will continue to contribute its strength to realizing Hunan’s vision of “Three Highs and Four New Missions,” achieving the “dual-carbon” goals, and jointly building a Green Silk Road.

Members of the Group’s leadership team who were present in Changsha, senior executives, external directors, deputy chief engineers, deputy secretaries of the Discipline Inspection Commission, and vice chairpersons of the trade union, as well as heads of functional departments at headquarters, principal officials of the Group’s subsidiaries and units, and executives responsible for ESG initiatives, attended the launch ceremony.