Shanxi Securities is a China-based security company engaged in commodity trading and risk management, along with the securities and futures brokerage businesses. The company conducts its businesses mainly in domestic markets. An analysis of the company's environmental, social, and governance policies are as follows:
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 not implemented a water efficiency policy, with an energy efficiency policy not implemented as well. This compares to the lack 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, the setup of an Environment Management Team, Environment Management Training, Environmental Materials Sourcing, and Toxic Chemicals Reduction.
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 4,189 in the latest fiscal year, which compares to 5,063 in the prior year and 4,533 in the year before based on Median CO2 Estimates.
From a social standpoint, the company scores unfavorably, outperforming on the Community Score front but underperforming on the Human Rights Score front.
For instance, it has not implemented a health and safety policy, which compares to the lack of a clear policy in the prior year. The company has also not implemented a Employee Health & Safety Policy, with a Supply Chain Health & Safety Policy not implemented as well. 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.
From a governance standpoint, the company scores favorably, particularly outperforming on the Shareholders Score front but underperforming on the CSR Strategy 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 also have a Policy for Board Independence in place. The Board has held nine meetings in the last fiscal year, which compares to 11 in the prior year. The Board size currently stands at nine members based on the latest annual/ESG report.
The Board has an average tenure of 5.5 years, which compares to 5.2 in the prior year. The Board 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 and has not implemented a Succession Plan, but has implemented an External Consultants policy.
The company has implemented CEO-Chairman Separation and does have its CEO as a Board member. Its chairman is an ex-CEO. Board member term duration stands at three years. In total, senior executives' compensation has risen notably 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.