Sanju Environmental Protection: Trending Unfavorably on the Environmental Front

4.80
40 ratings

Beijing Sanju Environmental Protection & New Materials is a China-based company involved in the development, manufacture, and distribution of energy and environmental protection products. Key products include desulfurizing purificators, desulfurizing catalysts, and dechlorination agents, among others. Key end-markets span petroleum chemical engineering, natural gas, along with steel industries. The company operates its business mainly in the domestic market. An analysis of the company's environmental, social, and governance policies are as follows:


Environment


From an environmental perspective, the company scores unfavorably, outperforming on the Environmental Innovation Score front but underperforming on the Resource Use Score front.


For instance, it has implemented a resource reduction policy, which compares to the presence of a clear policy in the prior year. The company has implemented a water efficiency policy, with an energy efficiency policy implemented as well. This compares to the presence of a similar policy in the prior year.


Environmental policy areas the company is currently lacking include Environmental Supply Chain Policy, Resource Reduction Targets, Water Efficiency Targets, Energy Efficiency Targets, Environment Management Training, Environmental Materials Sourcing, and Toxic Chemicals Reduction. Areas the company has addressed include the setup of an Environment Management Team.


The company has also not implemented renewable energy use, which compares to the lack of a clear policy in the prior year. The company has also notably not implemented green buildings as well, which compares to the lack of a defined policy in this regard in the prior year.


In terms of its carbon footprint, the company's Estimated CO2 Equivalents Emission Total stands at 1,028,717 in the latest fiscal year based on Median CO2 Estimates.


Social


From a social standpoint, the company scores reasonably, outperforming on the Workforce Score front but underperforming on the Human Rights Score front.


For instance, it has implemented a health and safety policy, which compares to the presence of a clear policy in the prior year. The company has also implemented an Employee Health & Safety Policy, with a Supply Chain Health & Safety Policy not implemented. This compares to the lack of a similar policy in the prior year. The company has produced a notable increase in Net Employment Creation relative to the prior year.


As of the latest fiscal year, there have not been Management Departures, while the prior year saw no departures. Meanwhile, the company experienced no strikes this year, which compares to no strikes in the prior year.


Governance


From a governance standpoint, the company scores reasonably, outperforming on the Shareholders Score front but underperforming on the Management Score front.


The company does not have a Corporate Governance Board Committee, but has a Nomination Board Committee, has an Audit Board Committee, and has a Compensation Board Committee. The company does have a Board Structure Policy and does have a Policy for Board Independence in place. The Board has held 17 meetings in the last fiscal year, while the Board size currently stands at nine members based on the latest annual/ESG report. The Board has an average tenure of 10.4 years but lacks both cultural and gender diversity.


The company has implemented a Policy for Executive Compensation Performance but has not tied its Executive Compensation Policy to ESG Performance. The company has not implemented a Policy for Executive Retention, has not implemented an External Consultants policy, but has implemented a Succession Plan.


The company has not implemented CEO-Chairman Separation and does have its CEO as a Board member. Its chairman is not an ex-CEO. Board member term duration stands at three years. In total, senior executives' compensation has risen in the latest fiscal year, along with Board member compensation. Notably, the CEO compensation is not linked to total shareholder return. Meanwhile, executive compensation is not linked to long-term objectives. Sustainability compensation incentives have not been implemented. Thus far, there have not been any executive compensation controversies.


Sources:


https://www.csrhub.com/CSR_and_sustainability_information/Beijing-Sanju-Environmental-Protection-and-New-Materials-Co-Ltd


http://en.sanju.cn/about/index.html

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