Home Please click here for video edition of the repor
   
   
 
    1.Statement of the President
    2.Strategy
    3.Analysis on primary influences, risks, opportunities
and countermeasures of sustainable development
    4.General information of COSCO
    5.Basic profile of companies implementing sustainable development management system
  1)Shipping
2)Logistics
3)Ship-building/ship-repairing
4)Others
5)Overseas Companies
    6.Awards
    7.General information of the report
  1)Scope of report
2)Report compilation principles
3)Report guarantee methods
4)Scope and level of the report
 

 

 

   
In 2008, global economic situation has changed abruptly. In this year, the influences of global financial crisis on economic entity became obvious, growth rate of international trade slowed down, and shipping market faced great fluctuation. In the face of severe situation, COSCO Group has implemented and carried out the scientific development outlook in an in-depth manner to cope with the crisis. It has grasped the market opportunities, deepened the internal reform, enhanced the management and made new achievements in reform and development. It continued to outperform other enterprises in terms of production ability. Its operational benefits maintained stable and its income and profits took a lead among global shipping enterprises. In 2008, COSCO Group ranked the 327th in Fortune 500 List, an elevation of 78 places from the 405th in 2007, fulfilling three leap-forward developments in three years and further elevating its position and image.
Seeking for sustainable development in financial crisis is an important content for COSCO Group's efforts to implement and act in the scientific outlook of development. In face of possible risks brought by market changes, COSCO Group has attached great importance to market researches, improved its market prediction level, changed operational ideas, changed the operation methods in market growth to operation method to cope with economic slowdown rapidly, and tried to adapt to market recession in terms of operational ideas and marketing methods. With an aim to cope with the impacts of financial crisis effectively, COSCO Group has taken many preventative measures timely. It has taken the strategy of "giving top priority to cash", controlled the investment scope, paid attention to risk control of investment and made investment decisions cautiously. It has adjusted the growth structure of carrying capacity of fleet, further reduced the investment scale of main businesses, avoided investing into non-main business and strictly controlled administrative expenditure. Large-sized conferences were held in form of video conference to save business trip expenditure greatly. Besides, it has promoted economic shipping speed of vessels to save energies and reduce emissions. It has negotiated with ports on articles of cooperation agreement to reduce port expenditure, and carried out vessel rent re-negotiation with foreign ship-owners actively to reduce costs of chartered-in ships. It has implemented safety production responsibility system to further enhance the safety supervision, eliminate potential safety risks and ensure safe navigation of ships and safety production in lands.As a leading enterprise in Global Compact initiative, COSCO Group has actively supported and taken part in activities relating to Global Compact. It is the first Chinese enterprise who signed the Statement of Caring for Climate Changes and the Declaration on World Human Rights. It has insisted on performing its social responsibilities with world thinking and global perspective, showed its charms as a leading comprehensive shipping company in the world and shouldered the globalization social responsibilities of a world-class transnational company.COSCO Group actively implemented the Guiding Opinions for Central Enterprises to Perform Social Responsibilities issued by SASAC under the State Council, the Notice of Shanghai Stock Exchange on Promoting Listed Companies to Shoulder Social Responsibilities and the Release of Shanghai Stock Exchange's Guidelines on Disclosure of Environmental Information of Listed Companies (No. 1277 Document of Shangzheng Shanghan [2008]), the Notice on Doing a Better Job in Disclosure of Report on Performance of Social Responsibilities of Listed Companies in 2008 and Internal Control Self-evaluation Report as well as other requirements of related parties. Development of COSCO Group has followed the scientific outlook of development advocated by the Chinese Government. It has insisted on reviewing the development of enterprises, leading management innovation, establishing resource-saving and harmonious enterprises and fulfilling sustainable development of the enterprise under the guidance of four major contents namely human-orientation, comprehensive, coordinative and sustainable development.
 
In 2008, COSCO Group actively performed the Global Compact and social responsibilities, and its key social responsibilities include:
Actively responded to the recall of Central Committee of the
CPC and the State Council, carefully attended and deployed the activities to fight against rain, snow, ice and frozen disasters, relieved earthquake disaster, ensured safe and smooth holding of the Beijing Olympics as well as aided people in poverty or in Tibet, so as to ensure the transportation of electricity, coal and disaster-relief materials. Besides, it also transported a large batch of materials to earthquake disaster-stricken areas according to the requirements and tried to be a leader in performing corporate social responsibilities with practical behaviors.

COSCO Charity Foundation donated 141.25 million yuan in the whole year.
Successfully held the 5th World Shipping (China) Summit and built up its image of a responsible enterprise.
COSCO Group actively promoted the direct shipping across the strait of Taiwan. As a first shipping enterprise, it opened Xingang-Kaohsiung, Yangshan-Kaohsiung shipping lines, making positive contribution to cross-strait peace and co-existence.

COSCO Group determined the risk levels based on sustainable development of various business units, and made overall planning and three-year implementation plans for comprehensive performance of Global Compact, performance of social responsibilities and fulfillment of sustainable development. From 2005 to 2007, it has completed the upgrade and expansion from the pilot company of COSCON to COSCO bulk, logistics and terminal companies. COSCO Group's first sustainable development report released in 2006 was appraised as notable COP of United Nations Global Compact, making COSCO Group the first enterprise that wins this honoral in China and the first shipping enterprise in the world listed in notable COPs. Since then, COSCO Group's sustainable development report had been appraised as notable COP of United Nations Global Compact for three years in succession, making COSCO the only enterprise in Asia that wins such honorable titles for three years in succession. The COSCO Group Sustainable Development Report 2007 received A+ rating in review of COSCO GRI Sustainable Development Guidelines. COSCO Group has started the implementation of its second three-year implementation plan since 2008, and has completed the strategic improvement of sustainable development in three years.

COSCO Group has established sustainable development management system and business process restructuring in 7 years, making the system an important cornerstone for its growth. Under the sustainable development management system of COSCO Group, the sustainable development management and organization system, the sustainable development culture system, the management, measurement and supervision system as well as the information management platform have supported with each other, making the sustainable development strategy a part of the company's value concept.

In the future, COSCO Group will continue to perform the Global Compact, actively participate and support the important activities of Global Compact's network in China and try to be a leader in corporate social responsibility sector of the industry with practical behaviors.


June 25, 2009
 
COSCO 2009