Annual Report 2022

89 China Merchants China Direct Investments Limited Annual Report 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT (CONTINUED) SOCIAL RESPONSIBILITY (CONTINUED) Supply Chain Management (continued) Number of the Company’s active suppliers by geographical region: Geographical location Number of active suppliers in 2022 Number of active suppliers in 2021 Hong Kong 10 10 Mainland China 4 4 We have requested our service providers to maintain confidentiality of our business information. The business agreement will be terminated should there be any breaches in relation to the confidential information leakage and we retain the right to pursue legal action for any loss resulting from the breach. Therefore, to reduce the regulatory risks, the Company and the Investment Manager closely monitor news outlet for any ESG non-compliances of our service providers. Privacy and Data Protection We strictly uphold the relevant privacy laws and regulations as well as contractual obligations for the limited privacy data retained by having proper maintenance in a secure place and internal control. The data is only to be used for the purposes upon owners’ agreement and the data will be deleted whenever requested by the owners. When handling the privacy information, employees are instructed to exercise with due care. During the Reporting Period, there were no cases of non-compliance noted in relation to health and safety, advertising, labelling and privacy matters regarding services provided and methods of redress. We also did not receive any services-related written complaints with such practices adopted. Responsible Investment Responsible investment is upheld by the Board and the Investment Manager, as it is believed that responsible investment practice is the key to deliver long-term sustainable value to our investors and shareholders. As the topic of sustainability is gradually becoming increasingly considered by investors during their process of making strategic investment decisions, it is with a clear sign that responsible investment will be widely recognised. Hence, we do take steps through considering environmental and social criteria when making investment decisions, and not engaging in financing activities which may violate any environmental or labour laws purposefully for profits. A due diligence process is in place when we examine our investment targets. It is important that the targets are not only performing exceptionally and having good development prospects, but are also fulfilling their ESG responsibility. ESG factors are taken into consideration when we are assessing the risks posed by our investment targets. For example, we would understand their ESG policies and consider if they had any significant ESG non-compliances in the past.