A. General introduction
B. Management measures and operation indicators
C. Report of COSCON, a pilot unit of sustainable development of COSCO
D. Internal Auditing Report & Third-Party Auditing Advice for Report on Sustainable Development
E. Chart of comparison between COSCO Group Sustainable Development
report 2005 & GRI Guidelines
A. General introduction

Part I. Statement of the president | Part II. General information of COSCO,
sustainable development analyses for subsidiary companies and social honors received

Part III. General information of report

 
Statement of the president

 

The year of 2006 is the 45th anniversary of China Ocean Shipping (Group) Company (hereinafter referred to as COSCO Group). The
corporation has established new strategic development target, while holding ceremonious celebrating activities and reviewing its
bright history. The target includes making new contributions to the prosperity and sustainable development of domestic and
international economic trade, and fulfilling our social responsibility, as well as keeping our leadership in the industries
of shipping, logistics, shipbuilding and ship-repairing. Therefore, I put forward in the address made during the celebrating
ceremony that, as a member company of both the United Nations Global Compact and the World Business Council for Sustainable
Development, COSCO will keep supporting the “Global Compact” initiated by the United Nations and fulfill the ten
principles of the Global Compact. We expect that, through the activities of the two organizations, we could know about the
conception standards and operation modes of excellent enterprises in the world, and hence cultivate international
corporation partnership spirit, further consolidate the corporation’s sustainable development management system, and fully
fulfill social responsibility. Special importance is attached to the following principles and conceptions in human rights,
labor standards, environment, anti corruption, etc.

Endeavoring to provide all-round, accurate, instant and stable services for clients, and drive the sustainable development
of the global economic trade.
Implementing the Scientific Development View and the Theory of Building Harmonious Society, to develop sustainable
enterprise, pay attention to the expectations of stakeholders, and try to reward shareholders and the society.
Following the basic tenets of the United Nations Global Compact, putting international pacts, treaties and conventions
into execution.
Committing itself to adopting the growth way based on environmental protection and resource saving, eliminating waste to a
greatest extent, and actively supporting and participating in ecological protection to realize harmonious development between
human beings and the nature.
Carrying out the human-oriented conception, ensuring occupational safety and health in production and operation; giving respect
to customs and cultures in different places, and offering pleasant enterprise environment for employees to develop creativity.
Establishing and perfecting corruption prevention and punishment system, conducting anti-corruption education, and
resisting business bribery.
Setting up interior auditing system, carrying out interior auditing activities, and ensuring the corporation’s continuous healthy development;
Establishing social responsibility management system and supervision system, integrating social responsibility concept with daily operation and management, keeping the persistence of social responsibility and ensuring simultaneous growth of both economic and social efficiency, and realizing sustainable development of the corporation.

I am well convinced that the social responsibility of an enterprise is persistent activities, in which the enterprise actively assumes the responsibilities for stakeholders with specific targets and plans, and realizes win-win development of both enterprise interest and social development. It should not be only a business stance. An excellent Corporate Citizen is supposed to integrate its concern about the society and the environment into the daily operation, and to turn the sustainable development and the corporate responsibility into an indispensable part of all its operations. Therefore, COSCO has established management systems and long-term efficiency mechanism for social responsibility and sustainable development, covering from strategy to execution, from procedure to operation, from decision making to implementation, from target to assessment, from basic data collection analysis to detailed processes of report compilation and release.

It is a huge systematic project for COSCO to complete the long-term efficiency mechanism for social responsibility and sustainable development. As an international plural corporation running businesses worldwide, COSCO still has to make long-term efforts in boosting the sustainable development. From now on, we will systematically adopt all-round preventative measures as planned and periodically assess and audit the performance of sustainable development. And we have launched the Guiding Suggestions for COSCO to Build up Thrift Enterprise and Implement Global Compact, and the Implementation Plan for Global Compact. The corporation has chosen COSCO Container Lines Co., Ltd (hereinafter referred to as COSCON), one of subsidiaries of China COSCO Holdings Company Limited (hereinafter referred to as China COSCO) as an experiment unit, and will extend the experiment in all the group gradually in the future. COSCO will adjust and add management indicators, with will be taken as the major tool for management of consistency of strategies of the company, pursuant to the requirements on indicators of the sustainable development report and the sustainable development strategies. This report, the first sustainable development report of COSCO, still requires further improvement. We believe that, with your powerful support, the ensuing reports will be more complete and perfect.

COSCO launches an annual sustainable development report as the conclusion and declaration for the above-mentioned conceptions. The report was compiled as required by the Sustainability Reporting Guidelines of the Global Reporting Initiative. To ensure the reliability, COSCO has submitted the report to the Global Compact Promotion Office of China Enterprise Confederation and the Det Norske Veritas headquartered in Norway for examination and evaluation.

 

President

2006-10-06


 
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COSCO Group, October 2006