Annual Report 2019

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT (CONTINUED) China Merchants China Direct Investments Limited Annual Report 2019 69 SOCIAL COMMITMENT (CONTINUED) Labour Standards The Investment Manager should hire employees in accordance with the minimum working age with valid citizen identity in strict compliance with the requirements of the local labour law. Employment should be based on the principle of fairness, openness and willingness, and the Investment Manager should enter into labour contracts for legal employments without acts of forced labour. There were no non-compliance cases noted in relation to labour standards laws and regulations during the year 2019. Supply Chain Management The Company and the Investment Manager have the highest respect for the laws and regulations that govern the way it goes about its business. The suppliers are encouraged to align their values with the Company and the Investment Manager, in respect of ESG issues, including but not limited to: ‧ employment to be based solely on the ability to perform the job and without any discrimination due to ethnicity, gender, age, disability or marital status; ‧ fair wages and all other legally mandated benefits be paid; ‧ provision of a safe and hygienic working environment which complies with local laws or practices; ‧ integration of environmental sustainability principles into business decisions; and ‧ community involvement. Responsible Investment The Company and the Investment Manager believe that attention to ESG matters is a prerequisite for long-term value creation. The Company and the Investment Manager always aim to invest responsibly as it executes its investment strategy. As reflected in its mission statement, the Company strives to maximise investment returns to its investors while upholding the highest standards of integrity and acting in a way that enhances the reputation of the industry. The Company and the Investment Manager take into consideration the ESG performance during the evaluation of potential investee companies, and request the investee companies to disclose significant non-compliance issues relating to ESG in a timely basis. There were no non-compliance cases noted in relation to the Company’s investment practices during the year 2019.