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www.glodon.com/en/
Stock Code: 002410
ENVIRONMENTAL, SOCIAL ANDGOVERNANCE (ESG) REPORT
Glodon Company Limited
2023
Making Every Project A Success
GREEN
CONTENTS15-30
About this ReportMessage from the ChairmanAbout GlodonSustainable DevelopmentManagement
Environment ManagementClimate Change MitigationResource UseWasteClean Technology OpportunitiesBiodiversity Protection
CONTENTS
GROWTHGOODWILL
| 31-72 | 73-86 |
Diversity and InclusionGrowth and DevelopmentCareer Health and SafetyCustomer Relationship ManagementProduct ResponsibilityCatalyzing Industry ProgressIndustry Talent DevelopmentBuilding a Responsible Supply ChainEngaging in Community Development
Corporate GovernanceHuman RightsBusiness EthicsIntellectual Property ProtectionPrivacy and Data Security
appendix87
Image: Glodon Smart Construction Base and South China Headquarters
Availability of the Report
This report is available in both printed and onlineformats. It can be downloaded from Glodon’s website(www.glodon.com/en/) or requested in printed form viathe contact details provided below:
Contact Address: E-13,10 Xibeiwang East Road, HaidianDistrict, Beijing, China.Phone: 86-10-56403000Postal Code: 100193Email: esg@glodon.com
2023 Environmental,Social,and Governance (ESG) ReportABOUT THIS REPORTMESSAGE FROM THE CHAIRMANABOUT GLODONSUSTAINABLE DEVELOPMENT MANAGEMENT
About this Report
IntroductionThe report reviews the endeavors and accomplishmentsof Glodon Company Limited (“Glodon” or “the Company”or “we”) in the fields of environmental, social, and governance(ESG) in 2023. It aims to bolster mutual understandingand engagement between Glodon and its stakeholders,thereby fostering sustainable growth and long-term value.Publication
This is Glodon’s fifth public annual report, detailing oursustainable development initiatives.Reporting PeriodThe report primarily covers the period from January 1,2023, to December 31, 2023, with occasional historicalinsights that mark significant milestones in Glodon’s journey.Organizational Scope
The organizational scope of this report encompasses allentities over which the Company has control or significantinfluence regarding financial and operational policiesand measures, consistent with the scope covered in theCompany’s annual report.
Reference Documents?GRI Sustainability Repoing Standards (GRI Standards) by Global
Sustainability Standards Board;
?ISO 26000: Guidance on Social Responsibility (2010) byInternational Organization for Standardization;?IFRS S1: General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2: Climate-relatedDisclosures by International Sustainability Standards Board;?United Nations’ 2030 Agenda for Sustainable Development
(SDGs);?Guidelines for Compiling Social Responsibility Repos (GB/T36001-2015), Guidelines for Social Responsibility (GB/T36000-2015), Guidance on Social Responsibility PeormanceClassication (GB/T 36002-2015) by PRC National Standards;?Self-Regulato Guidelines No.11 for Listed Companies-Information Disclosure Work Assessment, Self-Regulato GuidelinesNo. 3 for Listed Companies-Indust Information Disclosure,Self-Regulato Guidelines No. 17 for Listed Companies-Sustainable Development Repo (Trial) (Draft for Comment) byShenzhen Stock Exchange.Source of Data
This report derives its disclosure information fromGlodon’s official records and statistical reports, as well assustainability performance statistics within the organizationalscope. Our commitment is to continuously refine ourdata metrics to showcase our sustainability progress inan all-around way.
GREENGOODWILLGROWTHAPPENDIX
Message from the Chairman
In 2023, Glodon embarked on our ninth three-year developmentstrategy. During the year, the real estate and constructionindustry faced unprecedented challenges arising from thecomplex and evolving dynamics of the economy, placingheightened demands on the Company. Guided by the principleof "Customer Success", we dedicated ourselves to a relentlesspursuit of innovation and breakthroughs, and identified "Systematic digitalization" as the approach to tackling thedifficulties associated with achieving high-quality development.Driven by our commitment to build a winning company thatlasts 100 years and contribute to our society throughtechnology, we set our sights on creating long-term value forsociety. We endeavour to fully exploit and leverage ourinfluence, fostering close collaboration with stakeholders tojointly shape a better future.Embracing sustainability as our vision, we continuouslyintegrate Environment, Social and Governance (ESG) elementsinto our corporate culture, and have formulated a sustainabilitystrategy anchored on the core concepts of Green, Goodwilland Growth. A Strategy and Sustainability Committee has beenestablished under the Board of Directors to strengthenorganisation-wide engagement in ESG efforts and furtherintegrate the concept of sustainability into our businesses. Wehave strengthened stakeholder communication and assessedand updated our materiality issues based on "importance toGlodon" and "importance to stakeholders. We are delighted tohave received extensive accolades and recognition during theyear. In addition to our consistent presence in various ESGindices in China, we have received awards such as "China ESGListed Companies - Top 30 Technology Innovation Pioneer" and"Top 100 Listed Companies for ESG Performance in China for2023". Our ESG initiatives have also been featured in variouscase collections, such as the "Top 100 Leading ESG Casesamong Listed Companies in China".Rooted in green practices, we actively "leverage technologyto create a better living and working environment", where
"better" stands for green, healthy and sustainable qualities. Tominimise our own carbon footprint, we strive to improveenergy efficiency throughout our operations, practice greenprocurement, and drive collaborative efforts up and down thesupply chain to help address climate change. To maximise ourcarbon handprint, we employ advanced technologies to driveemissions reduction in the construction industry. We haveacquired leading overseas companies that specialise in globalenergy consumption simulation analysis to advance thesustainable shift in construction environment management andexplore comprehensive carbon management solutions acrossthe building life cycle, from material production, construction,to operation and maintenance. Embracing "smart ecosystemgovernance" as a key approach to improving the environment,we employ digital tools to promote the conservation andrestoration of natural ecosystems. We encourage all employeesto practise green principles, thereby contributing to theBeautiful China Initiative and building Earth, our commonhome, into a place where the economy and the environmentthrive in harmony.With innovation as our beacon, we are committed to transformingthe construction industry into an attractive high-tech sector.We harness digital technology to improve site environmentsand utilise data models for refined management and scientificdecision-making. In doing so, we reduce uncertainty, increaseproductivity, and boost the confidence and sense ofaccomplishment of construction professionals. To enhanceinnovation in research and development and promote collaborativeexchanges, we have established eight global R&D and innovationcenters. The Glodon Smart Construction and South ChinaHeadquarters Base, our fifth self-built innovation center inChina, is expected to start operations in 2024. We have integratedself-developed BIM software into its entire construction process,creating a seamless digital chain throughout the project lifecycle.In addition, we employ digital methods to train high-caliberindustry talents with practical skills, fortifying the "talent infrastructure"
in the construction sector. We create an open technologyecosystem and offer users and developers the Glodon BusinessPlatform, a professional, reliable, flexible and open platform withindependent intellectual property. We lower the barrier todigitisation and the cost of use, facilitate industry-wide insightsinto digital transformation, and pave the way for a new digitalconstruction era.With development as our blueprint, our foundation lies insound management and shared development as we continuouslyexpand our corporate social responsibility. We create a diverse,equitable and harmonious workplace that safeguards the rightsand well-being of our valued employees. The refinement of ourtalent development system is an ongoing effort, designed tofoster a strong sense of belonging and cohesiveness within ourteam. Our commitment also extends to optimizing our corporategovernance structure and increasing board diversity, so as tostrengthen our ability to adapt and innovate in differentenvironments, and thus enhance our resilience to risks of allkinds. Steadfastly advancing our global footprint, we adhere tolocal regulations and conventions in our operations and sharethe fruits of our growth with the global community. A genuinecommitment to community development motivates us toextensively participate in infrastructure projects. By leveragingour technological advantages, we contribute to causes such asrural revitalization, educational development and the welfare ofvulnerable groups. The concept of sustainability aligns thevalues of the company, our people, and society, guiding ourefforts to promote inclusive global development.The road forward is long, but perseverance leads to arrival. Thesteps ahead are challenging, but dedication ensures success.In 2024, a pivotal year for our ninth three-year strategy, we willcontinue our journey as a committed digital enabler. By focusingon enhancing digital intelligence, driving productivity throughdigital transformation, and integrating data and digital governance,we aim to continuously support the fulfillment of our sustainabilitystrategy. We will persist in our diligent efforts to create a
people-centric brand that thrives on professionalism andtechnology. Our goal is to build an organization that caresabout employees' well-being, takes the lead in the industry, hasa long-lasting business foundation, and is respected by theworld, thus contributing to high-quality development thatharmonises the economy, society, and the environment.
2023 Environmental,Social,and Governance (ESG) ReportABOUT THIS REPORTMESSAGE FROM THE CHAIRMANABOUT GLODONSUSTAINABLE DEVELOPMENT MANAGEMENT
Yuan Zhenggang,Chairman and President of Glodon
In 2023, Glodon embarked on our ninth three-year developmentstrategy. During the year, the real estate and constructionindustry faced unprecedented challenges arising from thecomplex and evolving dynamics of the economy, placingheightened demands on the Company. Guided by the principleof "Customer Success", we dedicated ourselves to a relentlesspursuit of innovation and breakthroughs, and identified "Systematic digitalization" as the approach to tackling thedifficulties associated with achieving high-quality development.Driven by our commitment to build a winning company thatlasts 100 years and contribute to our society throughtechnology, we set our sights on creating long-term value forsociety. We endeavour to fully exploit and leverage ourinfluence, fostering close collaboration with stakeholders tojointly shape a better future.Embracing sustainability as our vision, we continuouslyintegrate Environment, Social and Governance (ESG) elementsinto our corporate culture, and have formulated a sustainabilitystrategy anchored on the core concepts of Green, Goodwilland Growth. A Strategy and Sustainability Committee has beenestablished under the Board of Directors to strengthenorganisation-wide engagement in ESG efforts and furtherintegrate the concept of sustainability into our businesses. Wehave strengthened stakeholder communication and assessedand updated our materiality issues based on "importance toGlodon" and "importance to stakeholders. We are delighted tohave received extensive accolades and recognition during theyear. In addition to our consistent presence in various ESGindices in China, we have received awards such as "China ESGListed Companies - Top 30 Technology Innovation Pioneer" and"Top 100 Listed Companies for ESG Performance in China for2023". Our ESG initiatives have also been featured in variouscase collections, such as the "Top 100 Leading ESG Casesamong Listed Companies in China".Rooted in green practices, we actively "leverage technologyto create a better living and working environment", where
"better" stands for green, healthy and sustainable qualities. Tominimise our own carbon footprint, we strive to improveenergy efficiency throughout our operations, practice greenprocurement, and drive collaborative efforts up and down thesupply chain to help address climate change. To maximise ourcarbon handprint, we employ advanced technologies to driveemissions reduction in the construction industry. We haveacquired leading overseas companies that specialise in globalenergy consumption simulation analysis to advance thesustainable shift in construction environment management andexplore comprehensive carbon management solutions acrossthe building life cycle, from material production, construction,to operation and maintenance. Embracing "smart ecosystemgovernance" as a key approach to improving the environment,we employ digital tools to promote the conservation andrestoration of natural ecosystems. We encourage all employeesto practise green principles, thereby contributing to theBeautiful China Initiative and building Earth, our commonhome, into a place where the economy and the environmentthrive in harmony.With innovation as our beacon, we are committed to transformingthe construction industry into an attractive high-tech sector.We harness digital technology to improve site environmentsand utilise data models for refined management and scientificdecision-making. In doing so, we reduce uncertainty, increaseproductivity, and boost the confidence and sense ofaccomplishment of construction professionals. To enhanceinnovation in research and development and promote collaborativeexchanges, we have established eight global R&D and innovationcenters. The Glodon Smart Construction and South ChinaHeadquarters Base, our fifth self-built innovation center inChina, is expected to start operations in 2024. We have integratedself-developed BIM software into its entire construction process,creating a seamless digital chain throughout the project lifecycle.In addition, we employ digital methods to train high-caliberindustry talents with practical skills, fortifying the "talent infrastructure"
in the construction sector. We create an open technologyecosystem and offer users and developers the Glodon BusinessPlatform, a professional, reliable, flexible and open platform withindependent intellectual property. We lower the barrier todigitisation and the cost of use, facilitate industry-wide insightsinto digital transformation, and pave the way for a new digitalconstruction era.With development as our blueprint, our foundation lies in
sound management and shared development as we continuouslyexpand our corporate social responsibility. We create a diverse,equitable and harmonious workplace that safeguards the rightsand well-being of our valued employees. The refinement of ourtalent development system is an ongoing effort, designed tofoster a strong sense of belonging and cohesiveness within ourteam. Our commitment also extends to optimizing our corporategovernance structure and increasing board diversity, so as tostrengthen our ability to adapt and innovate in differentenvironments, and thus enhance our resilience to risks of allkinds. Steadfastly advancing our global footprint, we adhere tolocal regulations and conventions in our operations and sharethe fruits of our growth with the global community. A genuinecommitment to community development motivates us toextensively participate in infrastructure projects. By leveragingour technological advantages, we contribute to causes such asrural revitalization, educational development and the welfare ofvulnerable groups. The concept of sustainability aligns thevalues of the company, our people, and society, guiding ourefforts to promote inclusive global development.The road forward is long, but perseverance leads to arrival. Thesteps ahead are challenging, but dedication ensures success.In 2024, a pivotal year for our ninth three-year strategy, we willcontinue our journey as a committed digital enabler. By focusingon enhancing digital intelligence, driving productivity throughdigital transformation, and integrating data and digital governance,we aim to continuously support the fulfillment of our sustainabilitystrategy. We will persist in our diligent efforts to create a
people-centric brand that thrives on professionalism andtechnology. Our goal is to build an organization that caresabout employees' well-being, takes the lead in the industry, hasa long-lasting business foundation, and is respected by theworld, thus contributing to high-quality development thatharmonises the economy, society, and the environment.
GREENGOODWILLGROWTHAPPENDIX
About Glodon
Glodon Company Limited, keeping in mind the calling of “leveraging technology to create a better living and workingenvironment”, has over 80 subsidiaries in more than 100 countries and regions worldwide. Glodon provides servicesaround the life cycle of construction projects to various participants in the industrial chain, including industryadministrators, builders, designers, consultants, constructors, and equipment and material manufacturers, and operatesin such sectors as city operation, finance, and education. Glodon offers digital construction lifecycle solutions withspecialized applications in construction engineering as the core fundamental support, and industry big data and industrialchain finance as value-added services. Leveraging digital core capabilities that span design, construction, operation, andmaintenance, Glodon secures the top position in China’s digital construction market, maintaining its leadership stature.Prioritizing industry research and technological innovation, while adhering to the concept of “digital building”, Glodonfocuses on using digital technologies such as BIM, big data, Internet of Things, mobile internet, and industry AI to fostertransformation and upgrading of the construction industry. Glodon continues to make every effort to make every projecta success and help every construction practitioner make a difference, hoping to create a new ecosystem in theconstruction industry based on an open, interconnected, shared, and collaborative platform in the era of digitaltransformation.
25 yearsof dedicated experience in theconstruction industry
10,000+
active employees
A global sales andservicenetwork covering
200+ cities
360,000corporate clients
6,000,000+projects
10,000,000+end-users
Company ProfileDigital Building Platform Service Provider
As of the end of 2023, Glodon has:
2023 Environmental,Social,and Governance (ESG) ReportABOUT THIS REPORTMESSAGE FROM THE CHAIRMANABOUT GLODONSUSTAINABLE DEVELOPMENT MANAGEMENT
Global R&D Centers
OverseasChina
Self-owned Buildings in ChinaGlodon Building Glodon Information Building, Beijing Glodon Shanghai BuildingGlodon (Xi’an) R&D Center Glodon Smart Construction Base and South China Headquarters
2009 / Beijing
11,000 m
2022 / Xi 'an
66,000 m
2024 / Guangzhou
18,000 m
2013 / Beijing
30,000 m
2018 / Shanghai12,000 m
Glodon Building（Phase I & Ⅱ）, Beijing, China
Glodon Building, Shanghai, ChinaGlodon Building, Guangzhou, ChinaSingapore
Poland
Glodon Building, Xi’an, China
Hong Kong, ChinaGermanyUnited Kingdom
Sweden
Malaysia
Indonesia
United States
Global R&D CenterInternational Branches and Subsidiaries
FinlandLuxembourg
Eight global research and development centers, supporting the upgrade of core technologies and global progress ofdigital building.Five innovation bases nationwide, supporting the in-depth practice of digital building through independent R&D and PoC.
Global LayoutCombined Innovation and Proof of Concept
| US R&D Center Finland R&D Center Poland R&D Center Sweden R&D Center| Beijing R&D Center Shanghai R&D Center Xi’an R&D Center Guangzhou R&D Center
GREENGOODWILLGROWTHAPPENDIX
2013 | Hong Kong
Founded in Beijing
1998 | China
2005 | InternationalStart global layout andexpansion
2014 | Finland
Acquisition ofMagiCAD Group
2011 | Singapore
Open local operatingoffice
Branch opens, andexpansion into Asia
Our Mission：
Leverage technology to create a better living and working environment, and pursue material and spiritualhappiness for all staff.Our Vision：
Become a great enterprise that cares about employees’ well-being, takes the lead in the industry, has along-lasting business foundation, and is respected by the world.
Our Values 3.0：
Customer Success / Win-Win / Integrity / Keep Learning / One Glodon / Day One
2023 Environmental,Social,and Governance (ESG) ReportABOUT THIS REPORTMESSAGE FROM THE CHAIRMANABOUT GLODONSUSTAINABLE DEVELOPMENT MANAGEMENT
Accelerate digitalbuilding projectsin regions
2022 | EU & SEA
Build the leading digitalbuilding platform for thewhole project lifecycle
Future2019 | Poland
Acquisition of Shapespark
2021 | UKPartnership with RICS,CIOB and internationaluniversities
MagiCAD groupacquires majority stakein EQUA simulation
2023 | Sweden2015 | USOpen data researchcentre in SiliconValley
GREENGOODWILLGROWTHAPPENDIX
Systematic Digitalization
Empowers the High-quality Development of Construction Enterprises
Understand the from-one-to-all nature of the construction industry, leverage the systemic capabilities of digitizationthrough data, connectivity and algorithms, and offer integrated solutions in line with scenarios, connect and collaborateamong groups, enterprises, projects, and positions, so as to facilitate data-driven management and decision-makingservices, aiding in the high-quality development of enterprises.
Corporate Positioning：Digital Building Platform Service ProviderValue Proposition：Systematic Digitization Empowers the High-quality Development of Construction Companies
Cognition Upgrade
Three Key Supports
Comprehensive Solution
Core Objective
Top-level DesignImplementation PlanIntegrated Solution
Capacity Upgrade
DataConnectionAlgorithmIntegratedEnterpriseOperationMultipleManagementLevelsDifferentBusinessUnitsEvery JobPosition
Systematic Digitalization Solution
High-quality Development of Construction Enterprises
Partner UpgradeSupportsSupports
AchieveDriveAchieveDrive
Supply Chain IntegrationProject and Enterprise IntegrationSmart Construction Site Integration
Glodon Business Platform
......Corporate StrategyData ElementManagement
SystemIT Architecture
Upgrade
andIterateImplement
in Steps
GuidewithIndexReviewExam
Draw aBlueprint
2023 Environmental,Social,and Governance (ESG) ReportABOUT THIS REPORTMESSAGE FROM THE CHAIRMANABOUT GLODONSUSTAINABLE DEVELOPMENT MANAGEMENT
Business Layout
Serves the entire life cycle of the building
Glodon provides services around the life cycle of construction projects to various participants in the industrial chain,including industry administrators, builders, designers, consultants, constructors, and equipment and materialmanufacturers, and operates in such sectors as city operation, finance, and education. Glodon offers entire-lifecyclesolutions for digital buildings with specialized applications in construction engineering as the core fundamental support,and industry big data and industrial chain finance as value-added services.
Entire Life Cycleof BuildingsProject approvalDesign
TransactionConstruction
CompletionO&M
IndustryRegulator
Developer
Designer
ConsultantContractor
Equipment& MaterialManufacturer
CityAdministration
Educator
FinancialService Provider
GREENGOODWILLGROWTHAPPENDIX
Sustainable DevelopmentManagementSustainable Development Strategy
We foster the sustainability ethos within our corporate culture, committed to the vision of “making every project asuccess, and helping every construction practitioner make a difference”. In alignment with the vision, we unveil asustainable development strategy built upon the fundamental principles of Green, Goodwill, and Growth, encapsulatedin the innovation concept of G
(G-Cube).
Making every project a success,and helping every construction practitioner make a difference.
Become a great enterprise that cares about employees' well-being, takes the lead in theindustry, has a long-lasting business foundation, and is respected by the world.
Growth · Green ·Goodwill
“G?”strategyStrategicObjectives
Sustainabilitygoal & vision
Goal Commitments (by 2025)
Social
OptimizeDigitalOpen-mindedNurture
Governance
Governance
Environmental
Low-carbon
Uphold stringentbusiness ethics toelevate thecompany's ESGgovernancestandardsEnsure zerosignificantdisruptions inbusiness operationsthroughout the year
Deepen thepromotion of greenbuilding initiativesto cultivate healthyand aestheticallypleasing livingenvironmentsDevelop intelligentecological productsto facilitateecologicalrestoration andsafeguardbiodiversityProactively tackleclimate change,driving carbonreduction acrossour operations andthe entireconstructionindustry chain, withthe aim ofachieving a 50%reduction in hardemissionscompared tosimilar projects by2025
Make substantialinvestments ininnovative researchand development tobolster our autonomyover key technologiesContinuouslypromote customerservice experiencesto assist clients inenhancing qualityand efficiency,targeting a 20%acceleration in theprogress ofbenchmark projectsand a 1% reduction incosts for benchmarkclients by 2025Ensurecomprehensiveproject safety,striving for an 80%reduction in majorsafety and qualityincidents for projectsof significant scale by2025
Expand the reachof our proprietarytechnologies,leveraging datagovernance todrive broadersocietal progressPrioritize data andprivacy security,committing to zeroincidents of dataor privacybreachesthroughout theyear
Propel industryadvancement bydemocratizingaccess to digitaltools, therebypositioning theconstruction sectoras a high-techindustryForge a sustainablesupply chain,enhancing ESGmanagementstandards and riskmitigationcapabilitiesthroughout theconstruction supplychainEngage incommunitydevelopment,fostering inclusivegrowth andprogress inpartnership withlocal residents
Cultivate adiverse andequitableworkplace,effectivelyattracting andretaining toptalentIncreaseinvestment ineducation,utilizing digitalplatforms tonurture a moreextensive pool ofhigh-quality,industry-readyprofessionals
2023 Environmental,Social,and Governance (ESG) ReportABOUT THIS REPORTMESSAGE FROM THE CHAIRMANABOUT GLODONSUSTAINABLE DEVELOPMENT MANAGEMENT
Sustainability Management Framework
Our commitment to sustainability management is unwavering, with ongoing efforts to refine our governancemechanisms. Glodon has been amplifying the board of directors’ engagement and supervision over sustainabilityconcerns that impact corporate operations, spanning potential impacts, risks, and opportunities, while bolsteredcompany-wide participation in sustainability initiatives to enhance our overall capacity in this area.Improving the Governance Structure for Sustainable Development
Glodon has developed a robust “decision-making, organization, and execution” framework for integrating sustainabledevelopment into our operations. This setup boosts the board’s involvement in vital sustainability issues and establishesa focused working group, led by the board secretary, comprising 2 dedicated members and over 30 business leaders, tospearhead sustainability efforts, link sustainability goals with performance, and report progress to the Strategy andSustainable Development Committee. In 2023, the Committee held four committee meetings and two task force sessionsfocused on critical topics, such as climate change mitigation, the potential of clean technologies, and communityengagement.Promoting Sustainability Awareness and Related Capacity Building
Concentrating on enhancing our sustainability team’s skills, Glodon provides regular training initiatives. In 2023, eachfull-time sustainability employee underwent 48 hours of training on average. To ensure all staff fully grasp and implementsustainable practices, we offer a mix of online and offline salons and mini-courses.
Image: ESG Governance Structure of Glodon Company Limited
Advancing theimplementation
Reporting on theimplementation
Board of Directors
Strategy and sustainability
committee
ESG Working Group
Business segments and functonaldepartments of Glodon
Considerationand
supervision
Giving adviceondecision-makingDecision-making
Organisation
Implementation
Reporting and makingrecommendations
Advancing theimplementation
Reporting
Authorisation
GREENGOODWILLGROWTHAPPENDIX
Stakeholder
Government/Regulatory Bodies
Shareholders/InvestorsCustomersPartners/Suppliers
Employees
Community/
Public
Expectations and DemandsOur Response
?Compliance with laws and regulations?Implementation of national strategies?Job creation?Technological innovation?Energy conservation and emissionreduction
?Legal compliance?Reduced operational risks?Enhanced company market value?Product quality assurance?Service quality guarantee?Sustainable win-win cooperation?Win-win cooperation?Fairness and openness?Compliance with agreements?Protection of employee rights,occupational health and safety?Career development?Employee care
?Support for community development?Volunteering and charity work?Employment opportunities?Responsiveness to concerned issues
?Enhance corporate governance,implement internal control compliance
?Implement national policies?Create jobs and specific training?Invest in technological innovation?Promote green building?Practice low-carbon operations?Strengthen the compliance system?Regularly disclose information?Maintain frequent communication and exchanges?Innovate and iterate products?Improve customer service systems?Conduct customer satisfaction surveys?Enhance collaboration with government, academic,and research institutions
?Actively engage in external exchanges and dialogues?Strengthen business ethics management?Improve compensation structures anddemocratic management mechanisms?Provide a good working environment?Offer professional training and promotionopportunities?Enhance welfare systems and organizediverse activities?Support the economic and social developmentof operational locations?Organize and participate in volunteer andcharitable activities?Offer employment and skill training?Establish rich channels for information disclosure
Stakeholder EngagementValuing insights from both internal and external stakeholders, we identify six stakeholder types in accordance with theAA1000 Stakeholder Engagement Standard (2015): government/regulatory bodies, shareholders/investors, customers,partners/suppliers, employees, and the community/public. We connect with these groups using multiple platforms andchannels to quickly grasp their expectations, integrate their feedback, and address their concerns. Through promotingactive engagement in various forms, we strive to nurture a harmonious environment that supports sustainabledevelopment both inside and beyond our company.
2023 Environmental,Social,and Governance (ESG) ReportABOUT THIS REPORTMESSAGE FROM THE CHAIRMANABOUT GLODONSUSTAINABLE DEVELOPMENT MANAGEMENT
Management of Material IssuesIn our analysis of material issues, we follow the Global Reporting Initiative’s GRI 3: Material Topics 2021 from the GRI Standards,and emphasize dual materiality principle of "impact materiality" and "financial materiality". To gather insights, weconducted the 2023 Glodon Sustainability Material Issues Survey, distributed it widely online, and targeted a diversegroup of stakeholders with a balanced representation of both internal and external ones. From the 495 valid responsesreceived, the breakdown was as follows: employees (39.80%), customers (17.17%), partners/suppliers (16.77%), thecommunity/public (14.55%), shareholders/investors (11.11%), and government/regulatory bodies (0.60%).
After thorough identifying, screening and ranking of material issues, and the review of the Board Committee, the 2023sustainability material issues analysis matrix for Glodon is displayed below, showcasing the topics arranged in atwo-dimensional grid based on their importance to the Company’s sustainability and to the stakeholders.
Image: Glodon’s 2023 SustainabilityMaterial Issues Analysis Matrix
Importance to the sustainable development
of the company
Image: Process to Identify Material Issues
Image: At a constructionengineering forum, clients andmedia were invited to ?ll out survey
questionnaires
Continuous identi?cation andassessment of impacts
Identifying preliminarymaterial issuesCommunication withstakeholders and expertsUnderstandingtheorganizational
context
Identifyingactualand potentialimpactsUsing industrystandards tounderstandthe industrycontext
Consideringthe issues andimpacts describedin industrystandards
Comparing withindustry standards tovalidate material issues
Validating materialissues with expertsand information users
Prioritizing
the most
signi?cant
impacts tobe reportedEvaluating
thesigni?cance
of impacts
01020304
Material issues
Corporate GovernanceComplianceInvestor RelationsBusiness EthicsCarbon ManagementGreen BuildingDevelopmentOpportunitiesResource and EnergyUseSustainable Supply Chain
Product ResponsibilityTechnology InnovationPromoting IndustryDevelopmentCustomer ServiceData Privacy andSecurityIntellectual PropertyProtectionDiversity, Equity, andInclusion
Employee Welfare andCareCareer Development andTrainingCommunityCommunication andDevelopmentRural RevitalizationPublic Welfare andVolunteering
Importance to stakeholders
GREENGOODWILLGROWTHAPPENDIX
In 2023:
Green House Gas Intensity (GHGI) at
0.014 tons
carbon dioxide equivalenceper 10, 000 yuan
Water Use Intensity at
0.17 tons
per 10, 000 yuan
Glodon proactively responds to the global consensus of the Paris ClimateAgreement, continually improving its environmental management system.The Company has taken more effective actions in energy-saving,emission reduction, and carbon reduction across all stages to minimizeits carbon footprint. Significant investments have been made in cleantechnology research and development, aiding in the improvement ofboth the architectural and ecological environments. The Company’sendeavors have promoted harmonious relationship between cities andnature, with a joint effort from stakeholders, to build a clean, green, andbeautiful homeland.
Sustainable Development Goals
GREEN
Environment Management
Glodon has taken efforts to minimize environmental impact in line with the World Environmental Convention, otherinternational environmental protection regulations, and local legal requirements. In alignment with environmentalmanagement system’s guidelines, we are formulating environmental policies and gradually institutionalizing cleanproduction and green office initiatives to minimize our operational impact on the environment. We’ve developedcontingency plans for environmental emergencies, ensuring prompt responses to pollution incidents and natural disasters.In 2023, we conducted a thorough evaluation of relevant laws, environmental and financial implications, managementdeliberations, and stakeholder perspectives to pinpoint and assess key environmental factors influenced by ouroperations. We initiated measures to oversee and track these pivotal factors, ensuring their control status is continuallymonitored and reported. This approach enabled us to refine and enhance our action strategies based on practices.Glodon’s Key Environmental FactorsSections
Office greenhouse gas emissions
Office energy consumptionWater resource managementWaste managementSupplier environmental performanceGreenhouse gas emissions of buildings
Biodiversity protection
Climate Change MitigationClimate Change Mitigation
Resource UseWasteSupply Chain ManagementClean Technology OpportunitiesBiodiversity ProtectionCase
The Company rigorously followed green construction standards in the construction of Glodon SmartConstruction Base and South China Headquarters, by employing advanced technology through a smartconstruction site platform and online green construction monitoring equipment, which facilitated real-timemonitoring and predictive analysis of the site’s environmental impact and energy use. It has achieved a scoreof 95 in the Green Construction Management on-site evaluation by the China State Construction EngineeringCorporation, placing it at the forefront of the industry.
Minimize Environmental Impact through Green Construction and Digital Innovation
2023 Environmental,Social,and Governance (ESG) ReportABOUT THIS REPORTMESSAGE FROM THE CHAIRMANABOUT GLODONSUSTAINABLE DEVELOPMENT MANAGEMENT
Climate Change Mitigation
Glodon actively aligns with global initiatives such as the Paris Agreement, the 2030 Agenda for Sustainable Development, and theUnited Nations Framework Convention on Climate Change (UNFCCC), acknowledging the severity of climate change and the criticalneed to address it. Specifically, we follow the Task Force on Climate-related Financial Disclosures (TCFD) guidelines for governance,strategy, risk management, and climate-related metrics and targets. With the TCFD oversight transitioning to the ISSB in2024, we joined ISSB as an early partner in 2023, aiming for enhanced climate disclosure after a year of learning andpractice.Glodon has developed a robust “decision-making, organization, and execution” framework for integrating sustainabledevelopment, such as climate change mitigation, into our operations. This setup boosts the board’s involvement in vitalsustainability issues and establishes a focused working group, led by the board secretary, comprising 2 dedicatedmembers and over 30 business leaders, to spearhead sustainability efforts, link sustainability goals with performance, andreport progress to the Strategy and Sustainable Development Committee, which held targeted discussions on climatechange mitigation in 2023.Viewing “active climate change response” as a foundational element of our sustainability strategy, Glodon has devisedshort to long-term action plans with performance-linked climate goals. Climate change is integral to our riskmanagement, involving board-level analysis of climate risks and opportunities, including transition risks probably occurredby policies and laws, technologies, market and reputation, short-term and long-term physical risks, and opportunities inresource efficiency, energy, products/services, and market resilience. The analysis also extends to policy research,corporate practice benchmarking, and industry-specific analyses in construction, real estate, and software sectors. (See
3.1.3 for risk prevention and control details.) We identify and manage our carbon emission sources in a targeted way to
progressively reduce our carbon footprint.
GREENGOODWILLGROWTHAPPENDIX
Glodon’s Carbon Emissions in 2023
Scope 1 Emissions
(tons of carbon dioxide)Total Scope 1 Emissions
(tons of carbon dioxide)
Scope 2 Emissions
(tons of carbon dioxide)
Total Scope 2 Emissions
(tons of carbon dioxide)Total Scope 1 and 2 Emissions
(tons of carbon dioxide)
BeijingXi’anShanghai
0.09
15.37
3301.399105.659121.02
15.28/
4815.58988.68
Identifying Glodon’s Carbon Emission Sources
GHG Emission Scope
Scope 1
Scope 2
SourceScenario
Direct emissions from mobile
combustionDirect emissions from stationary
combustionIndirect emissions from purchased
electricityIndirect emissions from purchased
heat
Emissions from logistics and supply
activitiesEmissions from the procurement of
purchased goods
Indirect emissions related to the
supply chainScope 3
Company vehicles using fuel
Boilers and cafeteria areasElectricity used in office spacesDistrict heating, hot water supply, etc.Emissions from employee commutingEmissions from business travel
The basic equation for carbon accounting by the Intergovernmental Panel on Climate Change (IPCC) is: Greenhouse Gas (GHG) emissions =Activity Data (AD) × Emission Factor (EF).The carbon emission factors used are as follows:
- Electricity: 0.5703 kgCO2/kWh- Natural Gas: 0.002162 kgCO2/m?- Gasoline: 2.924884 kgCO2/kg
2023 Environmental,Social,and Governance (ESG) ReportABOUT THIS REPORTMESSAGE FROM THE CHAIRMANABOUT GLODONSUSTAINABLE DEVELOPMENT MANAGEMENT
Scope 1 Carbon Emissions
We monitor and mitigate our carbon footprint by focusing on direct greenhouse gas(Scope 1) emissions across all emission sources. The Glodon Xi’an Building is equippedwith rooftop solar panels and solar hot water systems for sustainable, in-house energyproduction. In addressing mobile combustion, we refine fuel consumption tracking forcompany vehicles, streamline routes, and maintain regular vehicle upkeep for optimalperformance. For stationary combustion, we prioritize clean and renewable energysources such as natural gas and electricity, alongside energy-efficient appliances to boostefficiency. To tackle fugitive emissions, we choose eco-friendly refrigerants and enforceregular air conditioning maintenance to prevent leaks.
Scope 2 Carbon EmissionsEnergy management is pivotal in our carbon reduction strategy, ensuring energy is usedboth wisely and sparingly. Under the goal of “balancing quality with energy”, we cater tothe diverse spatial needs of our employees across seasons and in different scenarios. TheGlodon Shanghai Building introduces a targeted energy consumption management goalof “reducing energy use and carbon emissions, increase energy efficiency, and save costsby 5%”, serving as a benchmark for managerial enhancements.Our approach integrates energy-efficient designs and systems, enhancing efficiencythrough natural lighting simulations, optimized window shading, interior layouts, andmaximizing natural light. We employ energy-saving technologies like thermal recovery andshading systems to conserve energy and increase its efficiency, in addition tohigh-efficiency LED lighting, well-planned lighting systems, and controlled usage time andscope. The Company’s Guangzhou Building is on track to implement advanced energymanagement and maintenance systems by 2024, anticipated to save over 250,000 RMBannually in energy costs.We utilize smart systems for precise energy management, advancing our commitment toenergy conservation and carbon reduction. Targeted analyses of electricity use andfocused assessments of critical equipment enable us to determine seasonal and timedenergy control approaches for building utilities (air conditioners, lights, lifts, and engines).Through Building Automation (BA) and intelligent electricity monitoring, we ensurereal-time oversight, process monitoring, and prompt alerts for any irregularities andoverload, thereby elevating management effectiveness. The detailed energy consumptionmeasurement framework within the Guangzhou Building exemplifies our commitment tothe fine management of energy consumption.
GREENGOODWILLGROWTHAPPENDIX
Case
In June 2023, Glodon’s Beijing Headquarters launched itsdigital power distribution system. This initiative integratescutting-edge technologies like artificial intelligence,image recognition, digital twins, and augmented realityto perform automatic analysis of line loss origins andfactors, enabling precise quantification of distributionlosses and identification of grid vulnerabilities for targetedimprovement suggestions.
Glodon (Beijing) Headquarters BuildingAchieves Fine Management of EnergyConsumption through Digital Technologies
Image: The Glodon (Xi’an) R&D Centerachieved the internationally prestigious WELLV2 pilot Platinum certification. It stands as thelargest project in Northwest China to meetthe WELL standards for healthy buildings.
Scope 3 Carbon Emissions
We remain committed to managing indirect greenhousegas emissions within our value chain (Scope 3), enhancinggreen transportation and logistics, incentivizing theprocurement of eco-friendly products, and engaging inlow-carbon educational and promotional efforts. We alsocollaborate with value chain stakeholders to find effectiveways to reduce our carbon footprint and enhanceenvironmental performance.For business travel, we implement an electronic sealsystem, and minimize travel needs by hosting online forumsand meetings. In 2023, we conducted 577,276 virtual meetings,and encouraged employees to choose low-carbon publictransport options whenever practical.In commuting practices, we champion green transportation,encouraging the use of public transit among our employees.All of the 9 employee shuttle buses are renewable energy
vehicles. With strategically planned parking and an increasednumber of charging stations—149 installed by the end of2023—we advocate for the use of renewable energy vehiclesto cut down on transport-related carbon emissions.In logistics and distribution, we prioritize partnerships withsuppliers committed to low-carbon principles, settingcarbon reduction targets and taking proactive steps. Ourelectronic contracting platform plays a crucial role in reducingcarbon emissions associated with mailing contracts. In 2023,this system helped cut down on 5,831 document mails.In procurement, we prioritize to purchase green, low-carbonproducts, while setting environmental standards formanufacturing suppliers. In 2023, 26 suppliers wereevaluated for environmental and social risks. (For moredetails on sustainable supplier management, refer to 2.7Supply Chain Management).
2023 Environmental,Social,and Governance (ESG) ReportABOUT THIS REPORTMESSAGE FROM THE CHAIRMANABOUT GLODONSUSTAINABLE DEVELOPMENT MANAGEMENT
Carbon Emission Reductions (CERs) by Glodon’s Electronic Contracting Platform
2020202120222023
Annual Electronic
Contracts
Annual CERs
（kilograms of carbon dioxide）
2,338.873,691.977,512.2411,841.84
4,66777,36714,99017,722
Image: According to the grading rules of BeijingGreen Exchange, Glodon was awarded the titleof "Pioneer Enterprise of Contracting for CarbonReduction in 2023" for its outstandingcontribution to carbon reduction through theapplication of e-signature.
Calculation Method: Carbon reduction is calculated based on the “Contract Signing Carbon Reduction” model developed by Fadada electronicsignature system.
GREENGOODWILLGROWTHAPPENDIX
Resource UseWe are committed to enhancing water resource management, and utilizingmunicipal and recycled rainwater for operational needs. Compliant withregulations, our sewage and wastewater are discharged into municipalwastewater pipelines. Our buildings feature smart water-saving systemsand efforts for efficient use and disposal of water. Notably, Glodon (Xi'an)R&D Center and Hotel Canton, adopting “sponge city” concepts, havemade strides in collecting and recycling diverse water sources, includingrainwater, greywater, tailwater, and condensate. For example, 3,544 tonsof water were recycled by the Shanghai building in 2023, representingover 61% of its total consumption. Our water-saving efforts also includeusing water-efficient fixtures, regular maintenance to prevent leaks, andoptimized water pressure and speed settings to reduce waste. Weemploy strategic irrigation practices, such as grassland sprinkling, timedsprinkling at cooler temperatures and leveraging natural rainfall, toenhance irrigation efficiency and water utilization. We also display “Turnoff when leaving” signs in water usage areas, and require the restaurantwater to be used on-demand to prevent prolonged flow.Our strategy extends to material reduction and recycling, fostering apaperless office environment, and digitizing office processes throughE-workow Management Regulations. Digital tools like online approvals, reservingmeeting rooms online, and emails are pivotal in our green office initiative,where we also emphasize double-sided printing of non-formal documentsand minimal packaging for holiday gifts to minimize waste.
2023 Environmental,Social,and Governance (ESG) ReportABOUT THIS REPORTMESSAGE FROM THE CHAIRMANABOUT GLODONSUSTAINABLE DEVELOPMENT MANAGEMENT
Case
In 2023, our Beijing, Shanghai, and Xi’an offices launched the “Maximize Savings, Small Actions, Big Impact”initiative, focusing on resource conservation, promoting low-carbon practices, and fostering an eco-consciouswork culture that encourages everyone to save resources and enhance efficiency.
Glodon’s Workplace Conservation Initiative
Image: Posters of Glodon’s Workplace Conservation Initiative “Maximize Savings, Small Actions, Big Impact”
Glodon’s own workplaces have actively implemented conservation initiatives by:
?Making electronic environmental awareness posters,disseminated via digital screens and social media.
?Optimizing office layout with a shared workstation
system, enhancing space efficiency and reducingenergy usage.
?Introducing nightly energy and water-saving patrolsto switch off unused lighting and water appliancesand fixtures during 18 o’clock to 6 o’clock.
?Regularly updating our conservation efforts,boosting employee engagement and sense ofachievement.?Initiating a carbon points system to incentivizeand reward energy-efficient behaviors withinthe office.
GREENGOODWILLGROWTHAPPENDIX
Waste
Glodon complies with local waste management regulations, refining waste management framework, initiating robustgarbage sorting, recovery, and processing systems. Our strategy aims at minimizing waste generation and maximizingresource utilization, thereby alleviating environmental stress. Glodon selects certified waste disposal entities in line withregulations and laws to ensure waste management is both standardized and traceable.
ManagementManagement?Household waste is sorted and transported todesignated disposal areas as per guidelines oflocal environmental and sanitation departments.Kitchen waste is recycled and processed bycertified entities. Construction waste is managedby the respective construction teams, ensuringtimely cleanup and disposal.
?Recyclable materials, including waste paper and
plastics, are recycled. Confidential documentsare securely destroyed through eco-friendly methods.
?Hazardous waste is stored in facilities that complywith pollution control regulations, marked distinctlywith hazard warnings.?The selection of recyclers for hazardous wasteis conducted in line with the Company’s assetdisposal policies, prioritizing those certified byenvironmental protection agencies. The wholeprocess shall be record-kept and documented.
General WasteHousehold garbage, kitchen waste, constructionwaste, waste paper, waste plastic, waste metal, etc.
Scrapped electronic components, electronic devices,including scrapped printer toner cartridges, inkcartridges, fluorescent tubes, copiers, fax machines,calculators, and other equipment in offices andbusiness premises.
Hazardous Waste
Image: Glodon is committed to enhancing recyclingrates across facilities through stringent wasteclassification practices.
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Clean Technology Opportunities
Our commitment to greenness guides our innovation, with a strong focus on enhancing energy efficiency and reducingcarbon emissions through R&D and acquisition across the entire lifecycle of construction projects—from design andmaterial selection to construction and operation.Through the acquisition of EQUA, a global leader in building energy simulation, by our subsidiary MagiCAD, we’veintegrated EQUA’s cutting-edge simulation technologies with MagiCAD’s MEP design products, and innovatedlow-carbon building solutions. Our design decisions in new and renovation projects could rely more on detailedsimulation analyses, significantly enhancing the sustainability of building design.Our research efforts extend deeply into carbon management within construction sector. As a main researcher, weundertake the digital building software laboratory project under the national digital construction technology innovationcenter, focusing on “carbon emission factor measurement, accounting, and intelligent evaluation technology for buildingmaterials and building lifecycle”. In industry-academia-research partnerships with academic institutions like HuazhongUniversity of Science and Technology and Southeast University, we work together to explore intelligent solutions forenergy-efficient operations and low-carbon management.We also promote industry standardization, notably leading the development of the Energy Consumption and Carbon EmissionCalculation Technical Standard of Building Engineering Projects in the Xiong’an New Area and contributing to the Building Energy EciencyLabeling Technical Standards. By creating foundational tools for carbon emission management and establishing a comprehensivedatabase of carbon factors specific to the Chinese building sector, we're not only advancing our capabilities but alsodriving the broader industry towards a more sustainable, energy-efficient, and low-carbon future.
GREENGOODWILLGROWTHAPPENDIX
Image: Glodon’s carbonemission measurementcloud platform has beenapplied for Glodon (Xi'an)R&D Center, GuangzhouBuilding, and other clients.
Our suite of products and technologies is designed to reduce carbon emissions
throughout engineering projects.
?Digital Design Tools: Simulation and performance
analyses help designers to evaluate the environmentalimpact, energy consumption, and carbon emissionsof building operations in advance, and assess theimpact of design modifications on these indicators.Designers could make informed decisions, opting forsolutions that minimize energy use and carbonfootprint.?BIM Technology: Facilitating cross-disciplinarycollaborative design, BIM technology anticipates andresolves potential conflicts and inaccuracies early inthe design phase. It synchronizes design outcomesaccurately and timely to the construction team,reducing the need for rework, minimizing materialwastage, and cutting down on carbon emissionsresulting from extended construction timelines.?Digital Supply Chain Platform: This platform enhancessupply chain efficiency by selecting suppliers basedon regions, which concentrates material suppliesand improves quality while reducing transportation
distances. Additionally, it fosters a service platformfor green building materials, encouraging environmentallyfriendly options.
?“BIM+Smart Site” Data Decision System: Offering
dynamic oversight of construction sites, this systemanalyzes real-time data to recommend optimalmanagement strategies. By doing so, it aims toshorten construction timelines, conserve resources,and minimize waste.?Glodon’s Carbon Emission Measurement CloudPlatform: A pioneering digital platform that encompassesthe entire lifecycle of construction projects, frommaterial sourcing to project completion. It focuseson refining carbon measurement techniques,promoting significant carbon reductions across theindustry through innovation.
2023 Environmental,Social,and Governance (ESG) ReportABOUT THIS REPORTMESSAGE FROM THE CHAIRMANABOUT GLODONSUSTAINABLE DEVELOPMENT MANAGEMENT
Case
Since 2022, the EU Taxonomy has been assessing building values based on their total lifecycle environmentalimpact, from manufacture, transportation, construction, operation to demolition and recycling. To align with this,MagiCAD has developed MagiCAD Cloud over the past year, a BIM object database providing MEP plannersstandardized data for easy access and processing of environmental data of products within buildings, enablingprecise lifecycle analysis.“With the help of MagiCAD’s product library, I can easily find components that I know have theproper environmental classification,” adds Marcus. “Sustainable construction is about designingbetter systems that use less energy.”
——V?rme plumbing consultant Marcus Persson
Why EPDs are Becoming Important for MEP BlM Planning
Case
Glodon integrated planning software and PMSmart software improved Beijing International ConstructionGroup’s planning efficiency by 30% in the Zhongguancun Artificial Intelligence Technology Park Phase I project,enhancing collaborative communication fivefold. Its material management module significantly lowered primarymaterial waste and consumption, saving resources and cutting emissions. The project cut actual material lossby over 30%, saving around 890,000 yuan and shortening the timeline by 36 days.
Glodon Products Boosting Project Management at Zhongguancun Software Park
Image: EQUA Sensus system appliedto Fennia Office Building, Helsinkirenovation. Ceiling heating/coolingpanels, integrated to Sensus-system,were carefully dimensioned andpositioned, resulting in improvedcomfort and 25-35% energy savingscompared to the tradition system.
GREENGOODWILLGROWTHAPPENDIX
Biodiversity Protection
Committed to the Convention on Biological Diversity, the Post-2020 Global Biodiversity Framework, and the EU Biodiversity Strategy for 2030,Glodon has been innovating smart ecological theories and boosting digital tech application in energy, environmentalprotection, and ecological management. Our focus lies in developing intelligent services for precise ecological datamonitoring, decision support, and R&D of intelligent environmental equipment, as well as meeting green demands suchas pollution and emission reduction, and ecological restoration. We are identifying viable pathways and benchmark casesfor ecological restoration, contributing to ecological governance and biodiversity protection.We have innovated smart ecological governance tools by developing a comprehensive ecological health indicator system,reviewing 168 systems and 837 indicators globally with expert teams. Our pilot project, the Guangyang Island EcologicalHealth Indicator System, has successfully enabled dynamic ecological health assessments. Leveraging moderntechnologies such as cloud computing, big data, IoT, and BIM, we’ve constructed a digital twin platform for ecologicalmodels, which could integrate diverse ecological and management data, facilitate ecological monitoring, simulation,evaluation, and management. As a result, we’re advancing the integrated, intelligent, and scientific preservation of diversenatural landscapes, including mountains, rivers, forests, fields, lakes, and grasslands.In December 2023, we formed a strategic partnership with the Ecological Environment Smart Governance TechnologyInnovation Center of Yunnan Province, concentrating on lake and water eco-protection, soil remediation, waste treatment,and carbon neutrality, propelling smart ecological governance innovations.
Newecologicalplanning
ReducepollutantdischargeReducecarbonemissionsEnrich thevariety of
livingthings
Newecological governance
Newecological service
Ecological planning isscientific andreasonableEcological construction iseconomically controllableEcological managementis efficient and accurateEcological services are
more convenientEcological services are
more accurate
Allelements
Digital
Complete
cycle
Intelligent
All thefields
Online
Better ecological environment
Ecological informationmodel systemEcological environment
WaterSoilGasBiologyEnergy
AirSkyGroundBuilding
EcologicalplanningEcologicalgovernanceEcologicalservice
Image: Glodon pioneers an intelligent pattern of ecological development that encompasses all relevant elements, lifecycleand fields, utilizes digital, internet and intelligent means to offer sound ecological plans, governance and services.
2023 Environmental,Social,and Governance (ESG) ReportABOUT THIS REPORTMESSAGE FROM THE CHAIRMANABOUT GLODONSUSTAINABLE DEVELOPMENT MANAGEMENT
Case
Recognized by the United Nations as one of the Top Ten World Ecological Restoration Flagship Projects, theMountains and Rivers Projects play a significant role in preventing and reversing the degradation of naturalspaces globally. In 2023, the Chongqing Guangyang Island Ecological Restoration Project was selected as oneof the first 15 exemplary cases for the Mountains and Rivers Projects and was recognized as the 2023 IDC ChinaSustainable Development Pioneer Case.As a part of customized ecological restoration efforts, Glodon has crafted an intelligent ecological governanceplatform for Chongqing Guangyang Island, tailored to its specific conditions and featuring advanced ecologicalalarm and management capabilities. The initiative has led to a more than 20% enhancement in environmentalindices, elevated certain water bodies to Class II quality, and achieved a milestone of zero environmentalpollution incidents. Furthermore, it has fostered a 15% increase in ecological health and a 6% rise in GuangyangIsland's ecological value index, markedly contributing to the natural environment's enhancement.
Chongqing Guangyang Island Ecological Restoration Selected as one of the UNWorld Ecological Restoration “Mountains and Rivers Projects”
Case
In September 2023, in a construction project in the core area of Beijing, Glodon applied tower craneanti-collision technology. Special designs were implemented for prohibited zones within the project area,including areas with ancient locust trees, quadrangles, historical buildings, and hutongs. This ensuredconstruction efficiency while preventing tower cranes from encroaching on protected areas and disturbing theecosystem. It effectively safeguarded the surrounding community and ecological environment of theconstruction project.
Tailored Tower Crane for Construction at Significant Cultural Heritage Sites toMinimize Environmental Impact
GREENGOODWILLGROWTHAPPENDIX
In 2023:
The total investment in employee training and welfare was
40.4191 million yuan
Overall customer satisfaction scored
88.1
92.6%
of suppliers signed a socialresponsibility commitmentGlodon organized
public welfare activitiesGlodon hosted or co-hosted
industry summits, forums, and conferences
GOODWILL
Glodon has embedded openness and mutual benefit into the corporatecore values, operating under the principles of respect, care, andcollective progress. The Company earnestly collaborates with employeesto create value; facilitates customers’ digital transformation throughsuperior service and reliable products; aims for inclusive growth and thediversified prosperity of the industry; and strives for a harmonious, equal,and inclusive society, maintaining a friendly and sincere approachtoward all stakeholders as we move towards a better future.
Sustainable Development Goals
Diversity and Inclusion
Glodon places importance on the diverse and sustainable development of talent, fostering joint growth of employees andthe Company. We respect and safeguard employees’ legitimate rights, enhance their welfare, care for their health, andcreate an environment of equality and respect.We place paramount importance on human rights, rigorously upholding international labor standards including the EqualRemuneration Convention, the Discrimination (Employment and Occupation) Convention, and the Forced Labour Convention. In alignment withlocal laws, we have instituted comprehensive labor management systems, such as the Recruitment Management Regulations, toensure adherence to compliant employment practices. Central to our approach is the commitment to transparent,equitable recruitment processes, fostering fair competition, and applying consistent, merit-based selection criteria. Weare committed to adhering to the bottom line of compliant employment and talent management, advocating for openrecruitment, fair competition, and unified selection criteria, and recruiting based on merit. We treat employees of differentnationalities, ethnicities, races, genders, religions, and cultural backgrounds equally.We are dedicated to fostering an environment of equality, diversity, inclusion, and harmony, and spare no efforts to enrichteam diversity and promote opportunities for women and ethnic minorities. In 2023, the Company provided 1,874 jobopportunities to the society. By the end of 2023, the workforce includes 4,090 female employees, accounting for 39.52%of total employees, alongside 885 ethnic minority employees, accounting for 8.55% of the total workforce, representing18 ethnic groups in China.In international operations, we strictly comply with local laws and international conventions, implementing localizedmanagement for overseas businesses. In 2023, the proportion of localized employment in overseas subsidiaries reached100%.
2023 Environmental,Social,and Governance (ESG) ReportABOUT THIS REPORTMESSAGE FROM THE CHAIRMANABOUT GLODONSUSTAINABLE DEVELOPMENT MANAGEMENT
Employee Rights and Welfare
We proactively align with the conventions and initiatives set forth by the International Labour Organization (ILO), andadhere to the personnel laws and policies of our operational locales, with a steadfast commitment to respecting andsafeguarding human rights. We’ve established a robust framework for protecting our employees’ legitimate rights,unequivocally banning child labor and all forms of forced labor. Our policies against discrimination and harassment areincorporated in the Employee Handbook and our Employee Red Line Policy. Moreover, our overseas subsidiaries have enacted aCode of Conduct that elucidates our stance on fairness, inclusion, and human rights. We mandate all employees, regardlessof their location, to uphold these policies, offering them the ability to anonymously report any concerns or potentialmisconduct via online channels. We guarantee protection for whistleblowers against retaliation, ensuring every complaintis addressed with utmost fairness, urgency, and confidentiality. In 2023, we recorded no incidents of child labor,discrimination, forced labor, or any other forms of human rights violations.We always adhere to the concept of democratic management and attach great importance to the openness andtransparency of information. Through the creation of the Noh G Star internal forum and the organization of BOSS Dialogueand other executive dialogue activities, we share with our employees important information such as our operation statusand development plan in a timely manner to ensure that they fully enjoy the right to know and supervise. The companycontinuously improves the system and mechanism for employees to participate in corporate governance, regularlyconvenes staff congresses, and actively encourages employees to put forward valuable opinions and suggestions andparticipate in the company's decision-making process.We also widely collect employees' opinions and suggestions through diversified channels, actively respond to and resolvetheir reasonable demands, and strive to create a fair and harmonious working environment for employees. Meanwhile,we organize annual surveys on employees' career happiness to gain an in-depth understanding of employees' needs,work status and expectations, and on this basis, we continue to enhance employees' sense of identity and belonging, andpromote the common development of employees and enterprises. In 2023, the company's "Occupational Happiness" and"Sustainable Dedication" research samples covered 76% of employees. According to the survey results, 74.9% ofemployees are happy in their careers, and 89% are sustainable and engaged. We selected 42 companies forbenchmarking analysis, formulated plans to enhance employees' career happiness, and will regularly publicize them ininternal forums.
In 2023 :
Labor contract signing Rate：
100%
Maternity Leave Utilization and Return-to-Work Rate：
100%
GREENGOODWILLGROWTHAPPENDIX
Employee Benefits
We promote employee work-life balance, enhancing our workplaceby developing open leisure areas to create a comfortable andconvenient office experience. We enrich our employees’ leisuretime, boost team vitality and cohesion, and extend employeebenefits beyond the statutory requirements. We are committed tocaring for and addressing our employees’ life needs, striving toimprove their sense of achievement and belonging, and creating ajoyful workplace.
In 2023 :
As of the end of 2023, there were:
5,000+
employee union members
7 cultural and sports association,
hosting more than 200 cultural and sports events
Our Family Welfare Fund extended condolences and support to
135 employees and their families,with a total
1.39 million yuan in aid
Expenditures on employee health checks
2.72 million
yuan, employee business insurance 7.18 million yuan ,employee cultural and sports activities 0.39 millionyuan, and holiday benefits 9.65 million yuan
Image: Lessons at Glodon’s Yoga & Dance Club
Image: Employee Basketball Game
Image: Employee Jogging Event
Image: Flower Arrangement Event on Dragon
Boat Festival
Image: Therapists from the Shaanxi ProvincialAcademy of Traditional Chinese Medicine provideemployees with a charitable medical consultation
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Smooth OnboardingBuilding a Strong Foundation for
Safety and Well-beingPrioritizing Employee Health
Guided orientation, comprehensive services,
transparent compliance
Complete ProtectionComprehensive packages of six social insurance and one
housing fund and archival services
Convenient Commuting
Shuttle services, free parking, accessible charging facilities
Dining Convenience
Meal subsidies, healthy cafeteria options, convenient break areas
Secure Housing
Assistance with public housing applications, rental discounts,
support with household registration
Extensive Health BenefitsSupplementary medical insurance coverageOngoing Health AssessmentsEmployee physicals, health seminars, traditional Chinesemedicine consultations, psychological counseling
Diverse Club ActivitiesSeven clubs in Glodon for enriching leisure activities
Warm Holiday CelebrationsBirthday greetings, traditional holiday bonuses
Family Support FundCaring for Employee FamiliesFostering a Pleasant Environment
Assisting employees and their families during challengingtimes such as major diseases, major disasters and so forth
Flexible Time OffStatutory and company welfare holidays, promoting work-life
balance
Exclusive BenefitsChildren's insurance plans, family-friendly consumer loan rates
Thoughtful FacilitiesGym, shower rooms, nursing rooms, health centers,
employee library
Supportive Services
Air quality monitoring, holiday foster care programsFlexible Work Arrangements
Flexible hours, supports to remote working during
bad weather
Employees’ Lifein Glodon
GREENGOODWILLGROWTHAPPENDIX
Growth and Development
We highly value talent resources as a vital strategic asset, and thus, developing a robust talent management frameworkanchored in an inclusive and forward-thinking talent strategy. This approach not only attracts a diverse pool of talentsbut also fosters a culture of meritocracy. Through our comprehensive, multi-tiered talent development system, weenhance our employees’ professional competencies, providing clear pathways for career advancement. Our goal is tocultivate an excellent team that thrives in efficiency, collaboration, and innovation.Talent TrainingWe are dedicated to enhancing the training and development of ourtalent by offering a diverse range of training options tailored to meetthe growth needs of our employees at every career stage. Thiscommitment fuels their progress and personal development.With a focus on results-driven training, we have implemented theGlodon Training and Development Management Measures to align trainingefforts across all business sectors. Our diverse training portfolioincludes targeted initiatives such as the “Thousand-Person JuniorTraining Plan” and the “General Manager Training Program”. Inaddition, we conducted cultural and professional skills training forcampus recruits, with over 100 senior executives personallydelivering lectures to help new employees integrate into thecompany quickly.We continue to offer quality training by customizing upgrades andexpansions to our courses, aligning them with evolving employeeneeds identified through interviews and surveys. In 2023, welaunched 11 micro-courses for young cadre training programs,updated 7 grassroots cadre training courses, and continued tomonitor the training effectiveness. We integrate rich internal andexternal training resources to learn advanced experiences andmethods, inviting professional external lecturers as supplements.We arrange for senior management personnel to participate inexternal training programs such as the “Tushu Learning Alliance” toexpand their perspectives comprehensively and strengthen their jobcapabilities.
In 2023 :
Total investment in employee training:
21.47 million yuan
Employee training investment per million inrevenue:
3,290 yuan
Average training hours per person:
17.6 hours
Average training investment per person:
2,074.60 yuan
Training satisfaction rate:
94.89%
2023 Environmental,Social,and Governance (ESG) ReportABOUT THIS REPORTMESSAGE FROM THE CHAIRMANABOUT GLODONSUSTAINABLE DEVELOPMENT MANAGEMENT
Image: General Manager Training ProgramImage: 2023 Mid-year Manager Training
Image: 2023 Young Leader TrainingImage: Compulsory Courses for Junior Managers
Image: Training Plan for Graduated Students
Image: In the special event for the development of quality personnel in 2023, the experienced employees with rich practicalexperience and professional knowledge served as instructors in a training session, providing comprehensive analysis of qualitymanagement methods. During the seminar sessions, female participants actively shared their learning experiences and personal
insights, inspiring all participants to collectively reflect and progress.
GREENGOODWILLGROWTHAPPENDIX
Career Advancement
As talents function as the source of sustainability, we attach importance to employees’ career development. Our strategyencompasses a comprehensive development and learning ecosystem, evolving into a self-driven career framework thatfeatures “job qualifications, learning map, and employee development.” Our talent selection process is democratic,transparent, competitive, and based on merit, underpinned by a digital system that ensures precise and standardized jobqualification evaluations. We are dedicated to enhancing our Peormance Management System, evaluating immediateoutcomes and long-term contributions to ensure transparent performance feedback and fair grievance procedures. Ourinternal honor system, along with support for employees pursuing external awards like “Model Worker”, reflects ourstrategic and cultural focuses of promoting shared growth and mutual benefits.In 2023 :
Over 90%promotion rate for junioremployees
Approximately45%promotion rate for keyemployees
Around20%promotion rate for senioremployees
2023 Environmental,Social,and Governance (ESG) ReportABOUT THIS REPORTMESSAGE FROM THE CHAIRMANABOUT GLODONSUSTAINABLE DEVELOPMENT MANAGEMENT
Career Health and Safety
We place utmost importance on the health and safety of ouremployees, implementing a rigorous occupational health and safetymanagement system that guarantees a safe and secure workenvironment. Our efforts to ensure the safety of employees within thefacility include the reinforcement of building safety and officemanagement, the standardization of safety protocols, including thedevelopment of the Security and Protection Management Methods, detailingspecific requirements such as the utilization of building access cardsand guidelines for minors entering the premises. Through regular riskassessments and control, coupled with regular check and maintenanceof equipment and facilities, we strive to substantially reduce the risk ofunforeseen events.Committed to safeguarding our employees’ well-being, we prioritizemeasures to prevent work-related injuries and health issues,emphasizing both physical and mental health. Our efforts includeimplementing a “Healthy Eating Guide”, routine screening for Escherichiain cafeteria utensils, and testing for pesticide residues in vegetables toensure food safety from the source. Prompt sharing of inspection resultsguarantees the safety of employee meals. Additionally, we’ve establisheda dedicated health corner equipped with wellness equipment andinformational resources, such as videos and posters covering topics fromfirst aid to health benchmarks. Regular safety-focused events, includingcomplimentary health clinics with esteemed health professionals andtraditional Chinese medicine therapists from the Shaanxi ProvincialAcademy of Traditional Chinese Medicine, promote a culture of healthyliving and comprehensive care for our employees’ well-being.In our commitment to emergency preparedness, we’ve prepared detailedresponse plans covering emergency organization, communication, on-sitemanagement, medical assistance, and safety measures. Employeesundergo training in key safety areas including fire prevention, naturaldisaster readiness, and emergency evacuation procedures to increasetheir awareness and readiness. Regular emergency drills, featuringscenario-based simulations, skill training and hands-on practice, aim toenhance our staff’s self-rescue capabilities, ensuring they caneffectively respond to emergencies such as fires.
GREENGOODWILLGROWTHAPPENDIX
Image: We create a “health house” equipped with healthmanagement facilities such as intelligent health detection
machine for employees.
Image: We provide hygiene tests of dining hall tableware
every week, and publicize the test results.
Image: Fire Prevention Drill
Image: Health lectures and first aid training
organized by Glodon
Sampling
TestingPost-test
Send fortesting
2023 Environmental,Social,and Governance (ESG) ReportABOUT THIS REPORTMESSAGE FROM THE CHAIRMANABOUT GLODONSUSTAINABLE DEVELOPMENT MANAGEMENT
Customer Relationship ManagementAt the management level, we have established a closed loopfrom “getting closer to customers” to “productimprovement”, forming a strengthened “end-to-end” positivecycle. We maintain the mindset of “being even closer tocustomers, letting frontline voices be heard”, deeplyunderstanding customer needs. We offer various servicechannels such as telephone hotlines, online customerservice, and intelligent service assistants to rapidly addresscustomer inquiries, and thereby, earning customers’ lastingtrust and recognition.We optimize the customer experience by improving the “irontriangle” marketing system, which means representativesfrom sales, interaction and solution groups form the smallestservice team and effectively addresses customers’ diversebusiness forms and complex needs through comprehensiveand efficient responses. By refining customer relationshipmanagement processes, we assist customers in identifyingand resolving problems, maintaining professional serviceand delivering expert solutions throughout the pre-contract,during-contract, and post-contract stages. We helpcustomers enhance their staff’s digital capabilities andnurture professional talents, offering long-term andresponsible services such as product usage training andstandardized operation guidance.To improve the complaint response mechanism, weformulate the Standardized Guidelines for Defect FeedbackIn 2023 :
Overall customer satisfaction:
88.1 points
Service satisfaction:
90.8 points
Product satisfaction:
87.7 points
Complaint resolution rate:
100%
Complaint follow-up rate:
100%
Intelligent customer service addressed
4.73 million queries
Management and centralize customer feedback in amanagement library, categorizing and clearly definingresponse and resolu times. We conduct a thorough analysisof defect root causes to devise improvement plans. Weupdated the Complaint Management System, specifying complaintmanagement processes, responsible departments, andresponse times, ensuring “general complaints” areresponded to within 4 hours, resolved within 5 working days,and followed up within 3 working days post-resolution. Weproactively intervene in the types of problems where thenumber of complaints is on the rise to improve the quality ofservice.We listen to the voice of our customers, enhance thecomprehensiveness and scientific nature of satisfactionsurveys, continuously optimize survey methods, collaboratewith third-party research institutions, and utilize quantitativetelephone interviews to conduct surveys. We objectivelyunderstand customer sentiments through satisfactionmodels, NPS models, and other means. In 2023, wesurveyed 5,188 customers, with overall satisfaction, servicesatisfaction, and product satisfaction increasing by 0.1, 0.7,and 0.3 points respectively compared to the previous year.A satisfaction management closed-loop system has beenestablished, accurately identifying directions for enhancingcustomer satisfaction based on survey results, developingoptimization strategies, and forming replicable experiencesto create a value closed-loop for customers.
GREENGOODWILLGROWTHAPPENDIX
“Thank you for adhering to the principle of technological leadership and customer priority, enabling your sta tohave a good sense of seice and skills, and operating strictly in accordance with your company’s seice standardsand procedures.”
—Appreciation letter from the Xiong’an Municipal Road Electromechanical Project
Case
On September 28, 2023, a team of over ten professional trainers from Glodon provided training on its low-codedevelopment platform for the 14th Engineering Bureau of China Water Resources and Hydropower Corporation,aiming to help them form a digital research and development team. The trainer team delivered well-plannedand detailed empowerment services, covering 14 professional courses including demand management, R&Dmanagement, and test management, totaling 66 course hours. The training effectiveness was verified throughin-class exams, homework, and practical applications. Ultimately, all 17 trainees passed the assessment and,within just two months, successfully developed five modules and 20 classes of forms for the marketing system,including customer management, tracking management, and bidding management. Glodon’s training andempowerment services have significantly enhanced the customers’ digital capabilities and accelerated theirinnovation breakthroughs based on their intellectual property rights.
Empowering Customers to Build a Digitally Skilled Workforce
Image: Glodon employees are giving a training session to customers
2023 Environmental,Social,and Governance (ESG) ReportABOUT THIS REPORTMESSAGE FROM THE CHAIRMANABOUT GLODONSUSTAINABLE DEVELOPMENT MANAGEMENT
Product ResponsibilityWe consider “Customer Success” as the most critical component of our strategic system. We iteratively update ourproducts based on customer value, using digital methods to tackle the pain points in construction engineering. We alsoimplement a series of quality control measures to ensure the safety and stability of our products. We are committed toproviding customers with convenient, efficient products, and high-quality, reliable services.Assisting Customer Success
From the customer value perspective, Glodon has set the “second entrepreneurship” goals, breaking them down intoproduct-level, scenario-level, and function-level objectives, ensuring the effective implementation of customer’s strategicgoals. This guarantees the effective implementation of our company's strategic goals, establishing a seamlessclosed-loop process encompassing multi-level customer success indicators, precise identification of customer needs,and efficient delivery of customer value, supporting the goal of “making every project a success” from strategic,managerial, and practical levels.We are dedicated to creating customer value, using digital means to deconstruct the complexity of engineering projects,integrating progress and cost control, safety, and quality management throughout the process of project management.By focusing on the “human, material, equipment, method, and environment” elements of engineering projects, wecollaborating with customers to create transparent, standardized, and efficient quality projects, featuring the intelligentscheduling of equipment, refined material management, minimized safety risks，and greener energy consumption of
buildings (See p26 for details on how our products and technologies reduce carbon emissions).
Glodon’s Second Entrepreneurship Goals: Making Every Project a SuccessSpeed up projectprogress by 20%Reduce carbonemissions by 50%Reduce costs by 1%Improve quality andsafety levels in 80% oflarge-scale projects
Benchmark projects achieve a 20% increase.Implement refined control of project progress.Benchmark projects cut emissions by 50% compared to similar projects.Accurately measure carbon emissions.Increase profit margins for benchmark customers by 1%.Implement refined control of project costs.Achieve zero major safety and quality incidents in 80% of large-scaleprojects.
GREENGOODWILLGROWTHAPPENDIX
Case
To address common safety issues in tower cranes, such as overloading and blind lifting, Glodon introducedsolutions like tower crane monitoring systems and hook visualization systems. Utilizing sensors and controllers,these solutions effectively prevent and mitigate safety incidents like collisions and skewed lifting, digitizing andsystematizing tower crane safety management to ensure on-the-ground implementation of managementactions and effectively prevent safety liability risks.By the end of 2023, Glodon’s self-developed intelligent hardware, including tower crane safety monitoring andmanagement systems, hook blind zone visualization systems, and intelligent tower crane monitoring systems,had been integrated with over a hundred provincial, city, and district-level smart construction site supervisionplatforms, significantly enhancing on-site safety. The pilot phase of the tower crane intelligent control anddispatch system is set to transform the harsh working conditions of crane operators at heights, shifting fromcrane operators above to safety dispatchers below, potentially preventing 70%-80% of safety incidents causedby human factors during the lifting process.
Enhancing Proactiveness in Tower Crane Safety with Intelligent Solutions
Case
Glodon’s intelligent material solution service empowered China Communications Construction Group Co., Ltd.(“China Communications Construction”) to control all materials and aspects of their projects, groundingcorporate decisions in solid evidence and enabling practical management application. By leveraging artificialintelligence for complex steel reinforcement and pipe counts, efficiency was boosted tenfold. The integrationof Internet of Things (IoT) and business processes led to a 3% cost reduction in materials, halved the need forinspection personnel, and achieved an 80% surge in inspection efficiency, a 75% increase in accountingefficiency, and a 90% boost in control efficiency. The utilization of a big data platform, merging basic data likea unified material dictionary and supplier directory with automated onsite data collection and analysis, fortifieddecision-making support.In November 2023, China Communications Construction’s “Indicator Analysis + AIoT Technology in RefinedMaterial Management” was honored as an exemplary case at the 2023 “Digital Intelligence Award” by the ChinaCommunications Group.
“Indicator Analysis + AIOT Technology” Refines Material Management
2023 Environmental,Social,and Governance (ESG) ReportABOUT THIS REPORTMESSAGE FROM THE CHAIRMANABOUT GLODONSUSTAINABLE DEVELOPMENT MANAGEMENT
Case
Engaging with Chengdu Rail Transit City Investment Group’s public transportation-focused developmentprojects, Glodon implemented a digital engineering management system tailored for digital safety managementacross 21 critical safety domains, including major engineering works and hazardous operations. This systemsignificantly improved the breadth, standardization, and timeliness of safety management in engineeringprojects through meticulous safety inspections and briefings.By year-end 2023, the system had resulted in the establishment of 199 safety hazard inspection protocols and11 standards for dangerous operations, kick-starting 23 projects, performing 801 safety inspections weekly, and36 monthly, identifying 9,840 safety hazards, initiating 317 critical project alerts and 2,101 hazardous operationwarnings. It ensured 100% process control online, effectively mitigated over 2,000 safety risks, and achieved ahazard rectification rate surpassing 98% quarterly, thus elevating safety standards for building thriving cities.
Digital Safety Management Strengthens Safety Standards in Urban Construction
Case
MagiCAD helps Enerz Oy in several building design and optimization projects, facilitating energy consumptionmanagement throughout the building lifecycle. In 2023, Enerz Oy carried out a large-scale energy conservationproject at Ideapark, Finland’s largest shopping center, aiming to cut municipal heating use by 50%. The projectfeatured the replacement of outdated chillers with modern air-to-water heat pumps and the outfitting of airhandling units with cooling coils.
Energy-efficiency Experts Enerz Oy Reduce the Carbon Footprint of Buildings withHelp From MagiCAD
“Heating energy use in the shoppingcenter will be reduced considerablywith the implementation of anintelligent demand-controlled system.”—Enerz Oy Design Manager Toni
MyllyniemiImage: Ideapark, situated in Lemp??l?, Finland
GREENGOODWILLGROWTHAPPENDIX
Rigorous Product Quality Control
With the belief that quality is the cornerstone of customer success, we establish the Quality Management Committeeand develop Quality Red Line Management Standards, tailoring quality benchmarks for each product, project, and version toraise quality awareness among all employees, minimize quality-related risks, and guarantee the delivery of safe,dependable products to our clients.In the product development phase, we intensify quality assurance measures before each version release, conductingreviews and validations against set quality criteria. We also classify and manage development defects to ensure each bugis adequately resolved and conduct in-depth root cause analyses.Throughout the product operational phase, we rigorously enforce business continuity management, implementingmultiple software and hardware safeguards. A clustered, multi-node deployment strategy for software is utilized toensure data reliability. Systems are designed with inherent service recovery capabilities to ensure stable operation,complemented by robust server resources and a secure infrastructure environment to mitigate server downtime risksfrom external disruptions. Emergency recovery plans are in place for unexpected situations like power outages,communication breakdowns, and server failures.
2023 Environmental,Social,and Governance (ESG) ReportABOUT THIS REPORTMESSAGE FROM THE CHAIRMANABOUT GLODONSUSTAINABLE DEVELOPMENT MANAGEMENT
Vigilantly monitoring the evolution of frontier technologies within theindustry, we capitalize on our extensive digital building serviceexpertise to accurately interpret the industry’s dynamics andamalgamate its collective intelligence. We share our knowledge andinsights on digital transformation, engaging in collaborative researchand exploration with diverse partners to cultivate an open, win-winecosystem. Together, we are propelling the industry into agroundbreaking phase characterized by digitalization, intelligence,and BIM integration.Drawing from our rich reservoir of R&D innovation, we consistentlyenhance the performance of our products, thereby fueling theirevolution. By constructing and managing our own buildings, wemethodically apply new technologies, products, and models withinthe engineering realm, identifying and honing viable solutions. Inalliance with strategic partners, we set benchmarks in digitalconstruction, steering the digital transformation and elevation of theentire sector.
Elevating Our Technology
We are dedicated to R&D and technological advancement, withresearch investments averaging 31% of our annual revenue in recentyears. We invest in pivotal technological areas such as BIM, graphicmodeling, cloud computing, big data, IoT, and artificial intelligence.We boast a fully self-developed 3D graphics platform engine,securing its intellectual property rights and achieving a globalleadership position among related technologies. We actively pursuepatents and safeguard our intellectual achievements. By the end of2023, Glodon has acquired 358 authorized patents, 621 registeredtrademarks, and 902 software copyrights. Leading multiple nationalkey scientific projects, we foster integrated innovations acrossindustry, academia, and research, addressing major industrychallenges with our exceptional technical prowess and facilitating theconversion of scientific advancements.
Catalyzing Industry Progress
GREENGOODWILLGROWTHAPPENDIX
Technology forms the cornerstone of our operations. We have eight R&D centers across five countries to support coretechnology innovation and upgrading, and five innovation hubs in China to endorse parallel exploration and validation.Our self-developed initiatives deeply integrate digital building theory into practice. In 2023, the inauguration of ourSweden R&D center and the completion of Glodon’s Smart Construction and South China Headquarters Base, abenchmark digital construction project built by our self-developed graphics platform, leveraged regional resources tobolster our innovation and competitive edge. Strengthening ties with local academic and research institutions allows usaccess to top-tier scientific talent and support, enhancing our overall technological capabilities.We emphasize strategic planning in our R&D efforts, and establish the R&D Management Committee to overseesignificant decisions related to the strategy, development, and execution of the Company’s R&D systems. Since 2022, theadoption of the Domain-Driven Design (DDD) methodology has significantly increased our systems’ adaptability andscalability. Utilizing our long-standing technical foundation and talent pool, we pioneer in emerging technological fieldsto expedite the innovation of digital building software.Our commitment to fostering an inventive organizational culture creates a nurturing environment for R&D and creativity. Witha people-centric approach, we continually refine our internal digital product research tools, communication platforms, andreward mechanisms, and boost global collaboration, innovation, and R&D productivity, thereby inspiring employee creativityand proactivity. The 10
thGlodon Global Hackathon in 2023 had 98 participated teams, resulting in 10 distinguished projectawards and 7 notable individual accolades. We are dedicated to R&D team building through recruitment of more doctoralcandidates from premier global institutions and support given to product researchers, thus ensuring our team’s steadydevelopment. By integrating quality resources and inviting industry-leading experts as consultants, we ensure our productdevelopment efforts align seamlessly with customer value.
BIM/CIM TechnologyComputer graphics50+?formats supported forBIM/GIS20,000+ developers on ourplatformIoT Technology
Industrial IoT platform90+ types of devices300+ partners70,000+ devices online100 million data processed daily
Industry AITop talentsFocus on AEC industry80+ intelligent use casesBig Data
Multi-source data from theindustryPetabyte-scale distributeddata storage1,000+ industry data modelsTen-fold increase indevelopment efficiency
2023 Environmental,Social,and Governance (ESG) ReportABOUT THIS REPORTMESSAGE FROM THE CHAIRMANABOUT GLODONSUSTAINABLE DEVELOPMENT MANAGEMENT
Case
The Future Building Digital Twin Technology InnovationCenter led by Glodon set a new benchmark in the fusion ofindustry, academia, and research, delivering outstandinginnovations.The Center’s innovation mechanism, characterizedby its enterprise-centric, market-driven approach and deepintegration across sectors, has led to the development oflatest generation of smart construction technologies andproducts. The Center has achieved breakthroughs in threecritical areas: AI-aided planning, AI-optimized constructionscheduling, and advanced on-site networking for smartconstruction sites. Furthermore, it has introduced threeinnovative products: AI-powered master planning, AI-basedreverse modeling, and 360 Smart site inspection. Thesepioneering efforts have been published in the prestigiousSCI journal Automation in Construction, and applied acrossvarious projects.
Research of Glodon’s “Future BuildingDigital Twin Technology Innovation Center”Published by SCI JournalAutomation inConstruction
In 2023 :
R&D expenditure accounted for
30.09%
of total operating revenueR&D personnel accounted for
38.04%
of our total workforceEstablished
joint laboratories with universitiesFiled a total of
patent applications, all of which arefor inventionsGranted a total of
patents
of which are forinventionsRegistered
software copyrights
0.013
copyrights per million in revenue
Image: Expert meeting to assess research results
GREENGOODWILLGROWTHAPPENDIX
Case
As a co-building partner for the National Center for Digital Construction Technology Innovation in China, Glodonled the establishment of the Digital Building Software Laboratory at the end of 2022. The lab focuses onbreaking through key technologies in the digitalization process of the construction industry. It aims to establisha digital building software system architecture based on Model-Based Systems Engineering (MBSE). Researchfocuses include the integrated management PaaS platform of digital projects based on systems engineering,and Software for Intelligent Design and Construction Integration for Industrialized Construction and IntegratedCarbon Emission Software for Green Building Materials and Low-Carbon Construction, propelling the digitaltransformation and upgrade of the construction industry.
Digital Building Software Laboratory of the National Center for DigitalConstruction Technology Innovation Makes Breakthroughs in Innovation
Image: Glodon AI assistantanswers construction-relatedquestions for users
Image: The official release of the Glodon Business Platform
The official release of the Glodon Business Platform, providing new tools for global digital buildingdevelopers.Actively exploring the construction domain’s knowledge-augmented AI large model, AecGPT, and launchingthe engineering education software Tian Tian Xiang Shang (Progress Eve Day), making AI assistants an aid forconstruction professionals.
Glodon’s key R&D achievements in 2023 are as follows:
2023 Environmental,Social,and Governance (ESG) ReportABOUT THIS REPORTMESSAGE FROM THE CHAIRMANABOUT GLODONSUSTAINABLE DEVELOPMENT MANAGEMENT
Case
Glodon’s Road, Bridge, and Tunnel BIM Design Software caters specifically to designers in these sectors,emphasizing scheme and construction drawing design that aligns with Chinese design practices andstandards. This integrated BIM solution enables seamless collaboration and data interoperability of threeconnected subsystems for roads, bridges, and tunnels. By the end of 2023, the software has beenthoroughly validated and applied in 92 projects by 74 design agencies across 18 provinces and cities inChina. It adeptly meets the intricate design requirements of complex, multidisciplinary road, bridge, andtunnel projects, from conceptualization to detailed construction drawings.
Enhancing the Tech Capacities of Road, Bridge, and Tunnel Designers with BIMTechnology
Case
The Glodon Smart Construction and South China Headquarters Base project exemplifies multi-disciplinarycollaborative design, spanning architecture, structure, landscaping, and beyond. This project integratesdesign management, calculation, construction, operation and maintenance within a self-developed BIMframework, achieving unparalleled graphics and business interoperability. Employing IoT, AI, big data, andother smart construction technologies, it enhances intelligent site management, focusing on time, space,and personnel within the BIM model to support decision-making, visual project management and efficientoperation.“The Glodon BIM Platform Software excels in fullling the majority of business needs during the project lifecycle,setting an indust standard for widespread adoption.”
—Recognition from the expes for the Digital Application of BIM Throughout
the Entire Process at Glodon’s South China Headquaers Base
Digital Application of BIM Throughout the Entire Process at Glodon’s SouthChina Headquarters Base
GREENGOODWILLGROWTHAPPENDIX
Showcasing Our Digital Expertise
Drawing on years of digital innovation, Glodon has convened influential scholars, experts, industry regulators, andentrepreneurial leaders to forge pathways for digital transformation within the construction sector. Our commitment tosharing insights and experiences in digital technology aims to ignite a sector-wide digital awakening. By participating inthe development of industry standards, we advocate for the standardization of terminology, contributing our knowledgeand expertise towards the high-quality growth of the construction industry. In 2023, Glodon’s involvement in theconstruction of China’s Digital Housing and Urban-Rural Development standard system was recognized by the leadingdepartments.In 2023 :
Contributed to 12 national standards,7 industry standards,
and 32 group standards in China
Engaged with
industry associations
Engaged with4 industry alliances,hosting13 alliance events
Organized and co-hosted
industry summits, forums, and conferences
Participated in
industry summits, forums,and conferences
Released
industry reports and white papers
2023 Environmental,Social,and Governance (ESG) ReportABOUT THIS REPORTMESSAGE FROM THE CHAIRMANABOUT GLODONSUSTAINABLE DEVELOPMENT MANAGEMENT
Image: Glodon leverages the role of industrymonographs, white papers, and reports as areference for the digital transformation ofconstruction enterprises. In 2023, Glodon publishedSystematic Digitalization, a groundbreaking monographon digital transformation, alongside the inauguralissue of Digital Building magazine and industry white
papers, including Digital Design 2023.
Image: Through a strategic partnership withChina Construction News, Glodon initiated a talkshow series on digital building to foster dialogueand exchange among industry opinion leadersand practitioners. In 2023, the series published28 issues covering pressing topics related toindustry and corporate transformation, gaining
6.02 million views and featuring contributions
from 47 representatives across industry,
government, academia, and research.
Image: Glodon’s Digital Construction Lectureunderwent a brand enhancement to become anelite learning platform for industry professionalsat the mid-to-senior level. Over 150 courses andmore than 160 events, including online lectures,corporate training, educational tours, and livethematic broadcasts, were launched in 2023.
Image: Glodon has hosted the China DigitalBuilding Summit for 14 consecutive years,making it a premier forum for the exchange ofdigital transformation ideas. The 2023 summit,themed “Systematic Digitalization: Driving ValueUpgradation across the Industrial Chain”, washeld in Xi’an from June 8 to 10, drawing over3,500 attendees, including think tank experts,scholars, regulatory officials, entrepreneurs, and
corporate delegates.
GREENGOODWILLGROWTHAPPENDIX
Case
In September 2023, Yuan Zhenggang, Chairman and President of Glodon, announced the release of SystematicDigitalization - The Breakthrough Approach to Digital Transformation for Construction Enterprises at the China InternationalFair for Trade in Services (CIFTIS). This landmark publication, the first of its kind in the construction industry,explores the digitalization challenges faced by construction enterprises. It introduces the concept of“Systematic Digitalization”, providing a comprehensive framework for digital transformation and fosteringindustry-wide consensus for action.“The book is distinguished by its unique narrative approach, sharing the digital transformation journeys of constructionenterprises through compelling stories of challenges, detours, and successes. It sees as a comprehensive guide forcompanies new to digitalization, oering insightful analysis and clear methodologies that benet decision-makers,managers, and IT professionals within the construction sector.”
—High acclaim from attendees at the book’s launch event
Glodon Releases the Construction Industry’s First Monograph on DigitalTransformation:
Systematic Digitalization - The Breakthrough Approach to DigitalTransformation for Construction Enterprises
Image: The Book Preview Event of the Systematic Digitalization: Unlocking the Path to Digital Transformation in
Construction Enterprises
2023 Environmental,Social,and Governance (ESG) ReportABOUT THIS REPORTMESSAGE FROM THE CHAIRMANABOUT GLODONSUSTAINABLE DEVELOPMENT MANAGEMENT
Sharing Our Achievements
We share our developmental successes with ecosystem partners, dedicated to reducing digitalization barriers and costs.By establishing a data-driven, reliable, flexible and open digital platform for engineering construction, we enhanceresource efficiency and fosters an open technological ecosystem. This approach not only meets the unique needs ofconstruction enterprises but also supports ecosystem partners with open platform resources and all-aroundempowerment, encouraging broader industry participation in digital transformation.
Case
One of Glodon’s IPRs, Glodon Business Platform, was launched on June 9, 2023, employing a “core platform +modular components + ecosystem services” model. It includes advanced development tools, full-codedevelopment and low-code development, for prompt response to business needs and rapid adaptation tocomplex business scenarios.The Developer Network and Ecosystem Acceleration Program based on the platform, aim to create asynergistic and mutually beneficial industrial ecosystem through capacity and experience empowerment, andshared market resources. By year-end 2023, the platform had welcomed over 200 partners from the fields ofproject design, project management, and intelligent hardware, enhancing their commercial success andfostering a dynamic digital construction community featuring open platform resources and all-aroundempowerment.
Building an Ecosystem Together for Mutual Benefit, Jointly Creating a DigitalEcosystem for the Industry
How can Glodon Business Platform enable every ecosystem developer and clientto develop business components and applications tailored to their needs??Platform openness, component openness, and secondary development openness empower customers withecosystem-building capabilities.
?The development platform is open for third-party developers.?Component capabilities are open for developers to share Glodon’s achievements.?Secondary development capabilities are open, allowing customers to conduct their own developments.?No internal-external differentiation, granting third-party developers the same capabilities as Glodon.
GREENGOODWILLGROWTHAPPENDIX
Image: Glodon signed contracts with 12 eco-partners the 2023 China Digital Building Summit, accelerating the
development of an open and vibrant digital ecosystem for the industry.
2023 Environmental,Social,and Governance (ESG) ReportABOUT THIS REPORTMESSAGE FROM THE CHAIRMANABOUT GLODONSUSTAINABLE DEVELOPMENT MANAGEMENT
We stayed committed to employing digital methods to train and cultivate competitive industry talent, focusing on theentire career lifecycle of construction professionals and connecting various sectors including colleges, universities,construction enterprises, and industry professionals. We aim to provide talent education solutions for higher educationinstitutions, talent upgrading solutions for the digital transformation of construction enterprises, employment support forcollege and university students, and job skill assessments for practitioners, thereby achieving comprehensive talentcultivation across the supply chain of the construction industry.
University and College Student CultivationWe believe that universities are the most significant cradles of technological innovation and cultural inheritance. Throughcharitable donations to universities, we actively advance the innovative development of higher education and make everyeffort to expand students’ access to higher-quality educational resources. As of the end of 2023, we have donated to awide range of higher educational institutions such as Huazhong University of Science and Technology, SoutheastUniversity, Tongji University in Shanghai, and Beihang University in Beijing.We work to promote collaboration between academia and industry in nurturing talent based on the demand forconstruction talent in digital building and offer job skills training, expertise assessments, and internship opportunities andother employment support to university and college students. We also strive to combine professional competitions andjob skills certifications to achieve seamless integration of jobs, courses, competitions, and certifications for students.Moreover, we actively organize multiple specialized career guidance and networking events targeting the constructionsector to introduce more high-quality digital construction talents to the industry.Based on the position requirements, we keep pace with industry policies, standards, and employment criteria, practicingdigital teaching around five aspects: people, courses, venues, methods, and management. By the end of 2023, we havejointly established more than 30 modern industrial colleges with benchmark enterprises and higher educationinstitutions, covering a wide range of emerging specialties related to construction transformation, such as intelligentconstruction, prefabricated building, green building, and digital building. We provide workshop training projects forgraduating seniors and by the end of 2023, we have collaborated with 5 schools and supported nearly 1000 studentspass the pre-job professional and employment training, helping them rapidly improve their job capabilities andjob-seeking skills.We jointly work with universities and colleges to develop high-quality courses that integrate the new requirements ofdigital construction in design, construction, and O&M, creating a curriculum system that spans the entire process ofpreparation, teaching, practice, examination, and evaluation. In 2023, we worked on a series of 12 intelligent constructiontextbooks with Higher Education Press. Glodon is dedicated to collaborating with universities and colleges in buildinghigh-level and sustainable “dual qualification and dual capabilities” team of teaching staff (this means that the teachingstaff should not only hold both teaching qualification certificate and engineer qualification certificate but also be capable
Industry Talent Development
GREENGOODWILLGROWTHAPPENDIX
of teaching and engineering practice), and our cooperation also helps develop practical courses specifically forprofessional teachers to improve their awareness and application of digitalization, so as to advance teaching modelinnovation and curriculum reform. In this regard, more than 60 free professional courses have been launched, with over1,025 universities and colleges and more than 5,000 professional teachers participating by the end of 2023.We greatly encourage students to apply their knowledge and skills in practice through participating in competitions andactivities, and we build a competition system for digital construction talent cultivation, establishing a diverse and orderlyadvanced competition platform spanning from school-level to international levels, promoting teaching, learning,improvement, and construction through competitions. Moreover, two competitions, the National BIM Graduation DesignInnovation Competition for University and College Students and the National Digital Building Innovation and ApplicationCompetition, were listed in the National Rankings of Higher Education Discipline Competition by the Chinese Association of HigherEducation. By the end of 2023, this competition system for digital construction talent cultivation covered more than 30provinces, autonomous regions, and municipalities in China, supporting over 100 provincial competitions annually,organizing six national competitions, and involving more than 1,100 colleges and universities with over 80,000 teachersand students.We strive to develop vocational skill certification to examine students' vocational competence level and enhance theiremployability. Assisting the “1+X” project of the Ministry of Education of the People's Republic of China, we areresponsible for the assessment of Digital Application for Project Cost Management Certification, aiming to improvestudents' employability and increase their professionalism to better satisfy the position requirements. By the end of 2023,41 companies have justified the “Occupational Skill Level Standard for Digital Application in Construction CostManagement” Occupational Skill Level Standard for Digital Application in Construction Cost Management and approvedit to be scientific and objective. Furthermore, we work with the China Association of Construction Education to developthe Glodon Informatization Application Skills Certification for Construction (GIAC), which comprehensively evaluates theprofessional software skills, application experience, and business capabilities of relevant majors in colleges anduniversities and practitioners in cost management, helping them enhance their employability.
2023 Environmental,Social,and Governance (ESG) ReportABOUT THIS REPORTMESSAGE FROM THE CHAIRMANABOUT GLODONSUSTAINABLE DEVELOPMENT MANAGEMENT
As of the end of 2023:
We supportedover1,800construction-related colleges and universitiesin professional talent cultivationWe introduced
hundreds of thousands
of excellent talents to the construction industryWe have our independently developed digital training platformswith a total registration of 1,826 colleges,covering 3,518 teachersand 147,910 students
In 2023 :
We supported and advancedthe employment of6,140 graduates
from construction-related collegesand universities,with 14,802 job positions recommendedWe establishedover50 training baseswith construction-specialized colleges and universities
GREENGOODWILLGROWTHAPPENDIX
Digital construction
talent standard
Industry policy/Occupation standard
Integrated lifelong learning platform for construction talents
College teaching
Skill upgradingsystemTalent ability certification system
Vocationalexamination andtraining system
Enterprise employee careergrowth systemProfessional curriculumsystem of colleges and university
Personal ability improvementEnterprise talent empowerment
Government
New demand for digital
building talent
Digital transformationand upgrading ofthe construction industryIndustry
Digital construction talent supply chain platform
Architectural
talent
EnterpriseColleges and
university
Job requirement criteriaTalent cultivation
Talent matchingTalent supply
Talent demand
Undergraduate education, highervocational education, secondary
vocational educationCurriculum standard and curriculum
system constructionProfessional personnel training programDigital teaching platformTopics and competition
Multi-level professional talent
supplyMulti-level professional talentempowermentProfessional post ability training
2023 Environmental,Social,and Governance (ESG) ReportABOUT THIS REPORTMESSAGE FROM THE CHAIRMANABOUT GLODONSUSTAINABLE DEVELOPMENT MANAGEMENT
Case
On October 22, 2023, the National DigitalConstruction Academia-Industry IntegrationCommunity of China, jointly led by GlodonCompany Limited, Southeast University, andZhejiang College of Construction, was officiallyestablished with a total of 342 members. Thecommunity aims to integrate the industry chain,education chain, and talent chain, collectivelybuilding an integrated ecosystem for the digitalconstruction industry to accelerate the extensiveintegration of the entire digital constructionindustry chain.
Establishment of the National Digital Construction Industry-Education IntegrationCommunity of China
Image: During the 2023 Global Forum on Scienceand Technology Development in China, YuanZhenggang, Chairman and President of Glodon,delivers a keynote speech on Reflections andPractices on the Development of a JointEducation, Research, and Industry Talent TrainingSystem in the Construction Industry. In hisaddress, he shares Glodon's insights into talent
development within the construction industry.
Image: Establishment of the National DigitalConstruction Academia-Industry Integration
Community of China
Image: Glodon holds public seminars in terms ofemployment empowerment for graduatingstudents at universities and colleges to facilitatehigh-quality employment for graduates in the
construction industry
GREENGOODWILLGROWTHAPPENDIX
Professional TrainingAs an enabler of the digital transformation in the construction industry, we stay committed to supporting thedevelopment of construction industry talents. We integrate industry learning resources and provide comprehensivetraining courses to enhance the expertise and practical skills of practitioners. By advancing professional skill certificationsand empowering positions, we attach great importance to talent development so as to promote the overall constructioncapabilities of the industry, injecting endless momentum into the sustainable development of the construction sector.We consolidate learning resources for construction practitioners by establishing a social networking community platformTian Tian Xiang Shang (Progress Eve Day) APP for communication and learning among project managers. This platformfacilitates learning, experience sharing, exchanges, and interaction among users, integrates industry laws and regulations,and excellent case studies of digital construction, and develops an industry AI assistant to address construction-relatedqueries, enabling project managers to learn and grow rapidly. Furthermore, this online course platform offers a varietyof high-quality courses, serving 120,000 industry talents and contributing to professional talent development in theconstruction industry.Based on demands for industry development, we formulated scientific plans for the growth paths of constructionpractitioners. We provide enterprise talent assessment solutions on the basis of job competency requirements andscientific assessment criteria. Leveraging accumulated industry assessment data, we customize tests for enterprises andvisually compare and analyze assessment result data of tests, so as to provide reference for employee training plans. In2023, Glodon supported 400 companies in talent assessment, including 100 top-tier construction enterprises.We inspire talent vitality through various methods and enhance construction practitioners’ sense of honor andaccomplishment. We support multi-level professional skill competitions and provide software technology support andtraining guidance for national, industry, and company-level competitions throughout the whole process. In March 2023,Glodon provided technical support such as BIM software and other needed software to the National Vocational SkillsCompetition for Construction, contributing to the great success of the competition.
2023 Environmental,Social,and Governance (ESG) ReportABOUT THIS REPORTMESSAGE FROM THE CHAIRMANABOUT GLODONSUSTAINABLE DEVELOPMENT MANAGEMENT
Case
Engineering projects are the foundation of construction enterprise operations, and improving projectmanagement levels is essential for the enhancement of overall efficiency and performance. Project managers,who bear the primary responsibility of engineering projects, play a pivotal role in construction enterprises. Theircapability improvement is of significant importance for boosting project management efficiency, reducingwaste, and improving overall project performance.In 2023, Glodon launched the Ten Thousand Project Managers Empowerment Plan in collaboration withrenowned universities and colleges of construction and leading construction enterprises. Together, we built atalent development system for project managers in the industry, tailored high-quality courses based on industrystatus quo, development, and transformation, and planned to train and empower ten thousand constructionproject managers within three years. This initiative aims to comprehensively enhance the quality of talentindividual development, improve overall performance of project management, promote the overall constructioncapabilities of the industry, and drive the sustainable development of the construction sector. As of the end of2023, the public training under the Ten Thousand Project Managers Empowerment Plan covered 30 regionalindustry associations and conducted training for over 100 companies, with a maximum of 500 attendees peroffline training session, empowering over 10,000 project managers.
Ten Thousand Project Manager Empowerment Plan for Talent Development in theConstruction Industry
Image: Glodon was conducting a non-profit training for project manager empowerment
GREENGOODWILLGROWTHAPPENDIX
Case
From June 7th to 9th, 2023, the first-ever national workers’ vocational skills competition focusing on digital skillsapplications, the "National Workers’ Digital Application Technology Skills Match," held its finals in Fuzhou, FujianProvince in China. As a supporting company of the competition, Glodon provided BIM software productsincluding Glodon BIM Civil Engineering Measurement-GTJ, Glodon BIM Installation Measurement GQI (MEP), Glodon BIMMAKE,Glodon BIM 5D Construction Organization Simulation, etc.) for the BIM technician competition events. During thecompetition, we actively responded and advocated young construction practitioners to developing innovativethinking through technical learning, encouraging them to continuously explore and improve traditionalconstruction processes, thus continuously injecting innovative vigor into the sustainable development of theconstruction industry.
Image: Glodon was invited to providecommentary for the live streaming of thecompetition throughout the events
Support the “Chinese Workers’ Digital Application Technology Skills Match” andFoster “Digital Craftsmen”
Image: Glodon served as a BIM software supporter for the Chinese Workers’ Digital Application Technology
Skills Match in China
2023 Environmental,Social,and Governance (ESG) ReportABOUT THIS REPORTMESSAGE FROM THE CHAIRMANABOUT GLODONSUSTAINABLE DEVELOPMENT MANAGEMENT
We place paramount emphasis on value delivery in the supply chain. Through responsible purchasing practices, weendeavor to drive improvements in environmental and social impacts among our suppliers, while supporting the growthof those who prioritize environmental, social, and stakeholder-friendly practices. Additionally, as a leading digital buildingplatform service provider, we leverage supply and purchasing platforms to empower the construction industry. Byutilizing digital tools, we enhance the resilience of the industrial supply chain and bolster its ability against risks, thusfostering an efficient and reliable supply chain ecosystem.
Achieving Responsible PurchasingWe remain firm in fair, impartial, and transparent purchasingpractices, revising the Supplier Management System and PurchasingManagement System to standardize the procurement process. Inaddition, we enhance supplier access certification,performance evaluation, and elimination mechanisms,ensuring accountability at every stage from tendering andfulfillment to payment. Amid the supplier access, we requirecompliance with the SA8000 social responsibility standardand the signing of a Corporate Social Responsibility (CSR)Commitment. During the process of supplier classification andreview, we consider environmental and social risk factors inthe supply chain, focusing on environmental impactassessments and management systems for manufacturingsuppliers. We extend our scope of review and evaluation tocover their upstream suppliers for trading enterprises andintegrated manufacturing companies, and incorporate issuessuch as forced labor and occupational health and safety intosite audit criteria for suppliers. This motivates suppliers toimprove their sustainable development performance,contributing to the establishment of a responsible supplychain ecosystem.Concerning the indirect purchasing intentions, we prioritizegreen and environmentally friendly products or those thatsupport rural development and vulnerable groups. Thisapproach aligns with our commitment to promotingsustainable development throughout the supply chain.
Building a Responsible Supply Chain
In 2023 :
We brought 3,246 vendors into thesupplier system, all meeting the standards forcredibilityOur manufacturing suppliers can
100% meet environmental andsocial risk management policies
We approved a total of1,102 suppliers,with
97.46% of them completed
signing the Corporate Social Responsibility Commitment
We conducted60 supplier audits,with35 suppliers improving andmeeting qualifications after the audits
GREENGOODWILLGROWTHAPPENDIX
Upgrading Industrial Supply Chains
We are attentive to environmental, social, and corporate governance risks throughout the construction industry supplychain. By establishing an efficient and convenient digital platform between engineering construction material purchasersand suppliers, we work to improve marketing efficiency for suppliers and sourcing efficiency for purchasers, ultimatelysaving time and costs of purchasing. We advocate for the comprehensive evaluation standard of Quality, Cost, Delivery,and Service (QCDS) for building materials suppliers, conducting impartial supplier evaluations without economicinterests. This approach not only aids in selecting high-quality suppliers but also connects opportunities for high-qualitysmall and medium-sized suppliers. We pilot the Joint Purchasing Finance service, which reduces the overall cost ofproject material purchasing and simultaneously helps small and medium-sized construction enterprises optimize projectfund allocation and ensure timely payment. Furthermore, by integrating ecological resources, we refine the GreenBuilding Materials Service Platform to push forward green building materials and low-carbon applications in greenbuildings, ultimately enhancing project quality.Glodon’s Service Platform: A Pioneering Digital Supply Chain Solution Provider in theConstruction Industry
Convenient comparison,saving valuable timeTransparent pricing,reducing costsRating references,
mitigating risksLow-carbon labeling,promoting green purchasing
Precise tagging and classification,facilitating effective connectionsDirect supply and purchasing,streamlining marketing processes
Comprehensive evaluation,ensuring equal opportunitiesObjective and impartial practices,fostering fair competition
SuppliersPurchasers
In 2023 :
We facilitated serviceexchanges for a total of
19,941
suppliers and purchasers
We facilitated financing transactions totaling
1.08 billion
yuan for small and medium-sizedenterprises
We supported
engineering projects for smalland medium-sized enterprises
2023 Environmental,Social,and Governance (ESG) ReportABOUT THIS REPORTMESSAGE FROM THE CHAIRMANABOUT GLODONSUSTAINABLE DEVELOPMENT MANAGEMENT
Case
Glodon is committed to providing inclusive financial services to participants in the construction industrywhile integrating ESG investment philosophy into the credit process. In the credit assessment system forgeneral contracting enterprises in the construction sector, various indicators such as production accidents,migrant workers’ wages, social reputation, and so forth are meticulously considered. Performance data onenvironmental, social, and corporate governance are collected, integrated, and analyzed regularly, and arefactored into their main scores, directly influencing whether general contracting enterprises are admittedand determining their credit limits.In 2023, 12.5% of intended general contracting enterprises were deducted points due to environmental,social, and corporate governance indicators, failing to meet basic admission requirements. Among thegeneral contracting enterprises with continued credit, 33.33% had their credit limits reduced due todeductions in environmental, social, and corporate governance.
Provide Inclusive Financial Services for the Construction Industry andAccommodated ESG Evaluation Dimensions
GREENGOODWILLGROWTHAPPENDIX
We actively act on the United Nations Sustainable Development Goals (SDGs), continuously addressing the needs ofvulnerable groups, and bridging the gap with technology and love for better well-being and health. Leveraging industrialrevitalization as a catalyst, we promote equal access to services and resources, fostering harmonious urban-rural andregional development. In addition, we support educational initiatives to provide students with access to higher-qualityeducational resources. We adhere to gathering goodwill and contribute to the prosperity and stability of society.
Working for a Better CommunityWe have long been devoted to promoting harmonious social development, wholeheartedly supporting charity andpublic-welfare endeavors. Harnessing our operational and talent advantages as a technology enterprise, we strive to helpminority groups integrate into society and share happiness. In 2023, we joined the China Volunteer Association andestablished the Glodon Volunteer Service Corps, calling on our employees to take an active part in diverse public-welfareprojects such as offering elderly care and assistance to people with disabilities, promoting educational development, andso forth, thus contributing to a harmonious and friendly society.Furthermore, we adhere to applying technology to care for vulnerable groups, such as the elderly, children, and thedisabled. We donated safety-guarding smart devices, smart eldercare safety experience houses, and rehabilitationsubsidies for families of children with autism. Additionally, we organized community seminars on professional safety andfirst aid knowledge, elderly safety assistance, and rescue activities. Leveraging technological advantages, we aimed tobuild a safety protection network for the elderly living alone and those with disabilities. In 2023, covering more than 10provinces and cities including Beijing, Liaoning, Inner Mongolia, Fujian, and Shaanxi, we donated safety-guarding smartdevices to over 400 families with the elderly, building a safety protection network for elderly people living alone andthose with disabilities. What’s more, we collected a total of 5,323 rehabilitation subsidies to help families of children withautism master scientific and systematic rehabilitation skills.
Engaging in Community Development
In 2023 :
We organized
public welfare volunteer activities
With a total of
participants
A cumulative activity duration of
hours
2023 Environmental,Social,and Governance (ESG) ReportABOUT THIS REPORTMESSAGE FROM THE CHAIRMANABOUT GLODONSUSTAINABLE DEVELOPMENT MANAGEMENT
Image: Glodon Volunteer Service Corpsparticipated in volunteer activities of the Dragon
Boat Festival event held at the Shangdi Street.
Image: During the "520 Public Welfare Open Day"
on May 20th, our volunteer team organized ahandicraft charity sale with disabled individuals.
Image: Glodon (Xi'an) R&D Center organized a
public welfare art exhibition and charity sale,showcasing artworks by children with autism.
Image: Glodon’s volunteers were guidingcommunity residents to participate in festival
activities.
GREENGOODWILLGROWTHAPPENDIX
Case
In 2023, Glodon focused on advancing the “Ensuring Safety in One's Home, Caring for the Elderly” welfareinitiative, with elderly home safety at its core. This project targets particularly vulnerable groups such as theelderly living alone, empty-nesters, stay-at-home seniors, the disabled, and those with severe disabilities, weconducted public welfare activities including the donation of safety-guarding smart devices, the establishmentof smart eldercare safety experience houses, community seminars on professional safety and first aidknowledge, and elderly safety assistance and rescue training. This initiative is conducive to achieve donationsinto households, services into communities, activities with expertise, and sustainable public welfare.By the end of 2023, the project covered more than ten provinces and cities including Beijing, Liaoning, andFujian, donating safety-guarding smart devices to over 400 elderly households and handling a total of 7,717safety alarms for elderly households. Moreover, over a dozen community seminars on professional safety andfirst aid knowledge were conducted, benefiting over 2,000 participants.
Leveraging Technological Advantages to Build a Safety Protection Network for theElderly
Image: Glodon organizes community seminarson professional safety and first aid knowledge.
Image: Glodon’s volunteers install safety-guarding smart devices for the elderly.
Image: Glodon’s volunteers are explaining safetyknowledge tailored for the elderly to an old lady.
2023 Environmental,Social,and Governance (ESG) ReportABOUT THIS REPORTMESSAGE FROM THE CHAIRMANABOUT GLODONSUSTAINABLE DEVELOPMENT MANAGEMENT
Pushing Forward Rural Development
We are steadfast in our commitment to advancing the UN Sustainable Development Goal of “No poverty” by tailoringindustry assistance projects to local contexts. Providing financial and technical support, we endeavor to foster industrybrands with rural characteristics, collaborating with returning entrepreneurs in key sectors identified for governmentsupport. Through avenues such as direct purchasing, co-branding partnerships, collaborations among cultural andcreative industries or products, and shared market resources, we strive to expand marketing channels for specialtyagricultural products in regions like Shanxi, Hebei, Hunan, and Guizhou. This not only facilitates increased employmentand income for local farmers but also catalyzes the development of local agricultural, cultural, and tourism sectors withlocal characteristics, thereby igniting intrinsic momentum towards regional development.Leveraging our digital technology expertise, we led a public welfare initiative jointly established by the government, hospitals,and enterprises. Collaborating closely with local governments and medical ecosystem partners, we created the “Smart RuralElderly Care Service” project aimed at addressing safety and healthcare challenges faced by elderly individuals living alone orin empty nests in rural areas. In 2023, the project benefited 100 households with elderly individuals living alone.We place significant emphasis on promoting inclusive and equitable high-quality education, particularly in impoverishedareas, so as to promote sustainable rural development. By providing excellent educational resources to children in need,such as donating books to Bayanhushu No. 3 Secondary School in Horqin Right Middle Banner, a remote region in China,we aimed to inspire a love and interest for reading and learning among children on remote grasslands. In 2023, ourinvestment in rural education assistance projects amounted to 30,000 yuan.
Image: In 2023, Glodon hosteda charity runingevent, advocating for bookdonations through participation in a sports challenge. One book would bedonated to the schools in rural areas once a participant completes asports challenge. This event has 62 Glodon volunteers participating andfinally Glodon donates a total of 1,000 books to rural schools.Image: Glodon, in collaboration with the Peking University InternationalHospital team, embarks on a visit to Tianzhen County, Shanxi Province,to implement a joint public welfare project involving government,medical, and enterprises.
In 2023 :
Total investment in rural development support reached 2.4742 million yuan
GREENGOODWILLGROWTHAPPENDIX
In 2023:
femalerepresentationamong the board,supervisors, andsenior management
of suppliers signedthe Integrity Commitment
sessions ofcommercialethics trainingwere conducted
data breachincidentsoccurred
25%90.45%280
GROWTH
Sustainable Development Goals
Grounded in the principles of sustainable development, Glodon activelyestablishes robust corporate governance strategies, attaches greatimportance to the demands of stakeholders such as shareholders andinvestors. Our endeavor is to propel the company towards becoming anenterprise characterized by high commercial ethics, sustainablecompetitiveness, and ESG investment value. Upholding the bottom lineof strict compliance with laws and regulations, we fortify the foundationof risk prevention and control while supporting and safeguardinguniversal human rights. We firmly adhere to internationally recognizedbusiness ethics standards, protect intellectual property rights, privacy,and data security. By constructing a scientifically efficient governancesystem, we ensure the healthy development of the company.
Corporate Governance
We steadily enhance our corporate governance framework by diversifying our board of directors, improving governanceefficiency, optimizing investor relations management, and fortifying the foundation of risk management. This concertedeffort aims to foster a conducive internal and external governance environment. Our governance structure comprises theshareholders' meeting, the board of directors, four specialized committees, the supervisory board, and seniormanagement, each operating independently and coordinating effectively. This structure effectively safeguardsshareholder and company interests while elevating corporate governance standards.
Shareholders' Meeting
Board of DirectorsSupervisory Board
Board officeAuditCommitteeAudit &SupervisionDepartmentPresident's
Office
Strategy andSustainability
CommitteeRemunerationand EvaluationCommitteeNominationCommittee
Image: Glodon's Governance Structure
2023 Environmental,Social,and Governance (ESG) ReportABOUT THIS REPORTMESSAGE FROM THE CHAIRMANABOUT GLODONSUSTAINABLE DEVELOPMENT MANAGEMENT
and a supervisorattendance rate reached100%
with 23 agenda itemsdeliberated and reviewedand a director attendancerate reached
100%
with 42 agenda itemsdeliberated and reviewed
We greatly value talents, striving for fairness and equality without discrimination. Our selection of directors, supervisoryboard members, and senior management emphasizes core competencies, leadership abilities, professional experience,gender balance and so forth. This ensures that the most qualified and competitive candidates are matched andappointed to relevant positions. We actively encourage female employees to claim more rights and opportunities in theircareers. As of 2023, our board of directors, supervisory board, and senior management collectively comprise 16members, including four women, accounting for 25%.We place significant emphasis on the diversity of our board members, considering their industry experience andprofessional backgrounds, to ensure a scientifically constructed and effectively operating board. Our major selectioncriteria: diversity and professionalism, align with our vision of achieving an enterprise that stands the test of time.In 2023, based on a clear company development strategy, our board transitioned from a "founder-led team" to a"professional manager team." One-third of the board comprises professional managers, one-third are independentdirectors, and another one-third are experts from various fields including the construction industry, digital economy,human resources, finance, and so forth. This contributes to a sound composition of the board, with members allpossessing the necessary knowledge, skills, and qualities to fulfill their duties and bring about a broader, more inclusiveperspective within the company, bolstering our decision-making prowess. Moreover, this meticulously structuredassembly strengthens decision-making diversity, and effectively supports the substantive role of specialized committees.This helped promote advanced business and governance concepts, achieve sustainable growth, and fulfill the company'svision. As of 2023, our board consisted of 9 directors, including 6 non-executive directors (including 3 independentdirectors), accounting for approximately 66.67%. The audit, nomination, and compensation and assessment committeeseach have an independent director proportion of 67%.In 2023 :
board meetings were held
supervisory board meetings were held
annual shareholders'meetings and extraordinaryshareholders' meetings wereheld
with745 attendees
Board of Directors, Supervisory Board andShareholders' Meeting
GREENGOODWILLGROWTHAPPENDIX
Investors Relation Management
We comply with legal and regulatory requirements, including theSecurities Law of the People’s Republic of China and the Working Guidelines forRelationship Between Listed Companies and Investors in the Shenzhen StockExchange where we have our stock listed, and we also adhere tointernational and domestic ESG investment requirements forinvestors. We proactively disclose all significant information affectinginvestment decisions for rational market expectations to avoidmisleading investors. We maintain open communication channelsthrough investor conferences, performance briefings, conferencecalls, emails, and social platforms, facilitating investor participation incorporate governance. Moreover, senior management directlyinteracts and communicates with investors, addressing theirquestions and listening to their opinions.We keep optimizing our shareholder composition and shareholdingratios to safeguard investors' legitimate rights and interests. By theend of 2023, Glodon's largest shareholder held a 15.98% stake, andboth internal and external shareholders played crucial roles in majordecision-making processes.
In 2023 :
regular report conference calls wereheld
1641covering 1641 participants from homeand abroad
investor conference
performance briefing were organized
investor questions were replied to onthe Shenzhen Stock Exchange'sinteractive platform
announcements were publishedGlodon has published its sustainabledevelopment information disclosure reportin both Chinese and Englishfor4 consecutive years
2023 Environmental,Social,and Governance (ESG) ReportABOUT THIS REPORTMESSAGE FROM THE CHAIRMANABOUT GLODONSUSTAINABLE DEVELOPMENT MANAGEMENT
Case
On June 10, 2023, Glodon's annual investor conference was held at Glodon (Xi'an) R&D Center, which markedGlodon’s 11th consecutive year organizing this event. The conference, attended by nearly 400 investors,industry analysts, financial press, and industry media, was held both onsite and online through live streaming,catering to domestic and international investors.Innovatively, the venue for this year's conference was chosen to be Glodon (Xi'an) R&D Center, where digitalbuilding practices were carried out. The conference was also held concurrently with the China Digital BuildingSummit, inviting offline attendees to participate in the entire summit and various thematic forums in advance,aiming to help investors fully understand industry trends and Glodon's business and innovation achievementsand applications, thus providing them with a close-up and comprehensive experience of our company'sstrategies, products, and services. The conference featured core executives interpreting the company'sstrategies and business, as well as inviting benchmark clients to share their experiences of the applicationvalues, leaving a deep impression on attendees and achieving positive outcomes.
Providing Investors with a Close-up Experience of Digital Building
Image: Glodon's 2023 Annual Investor Conference
GREENGOODWILLGROWTHAPPENDIX
Among them, with acompletion rate of
28%
for the year, the remaining72% was expected to becompleted by 2024
Tracked and completed
recommendations forimprovement andrectification listed in2022
Enhancing Risk Prevention and ControlWe stay committed to enhancing our risk management system, bolstering investments in audit resources, andtransitioning from special audits to comprehensive audits. Following the internal control evaluation standards of industrybenchmarks, we formulated and refined the Internal Control Evaluation Process, Internal Control Maturity EvaluationCriteria, and Audit Rectification Implementation Rules, and revised the Internal Control Evaluation and ManagementSystem, in order to ensure a systematic and standardized approach to advancing internal control evaluations. In 2023,we carried out a special project titled "Identification of Sustainable Development Risks and Opportunities" to developsystematic solutions for identifying, evaluating, preventing, and addressing sustainable development risks for thecompany.Guided by risk identification, we iteratively optimized digital warning indicators, with a total of 79 identified risk indicatorsand 28 quantifiable indicators, categorized by business modules. Based on internal control evaluation norms andprocesses, we completed six internal control evaluation projects in 2023, identifying 400 internal control risk items with12 type-A risks, 350 type-B, and 38 type-C, thereby preventing economic losses amounting to 13.46 million yuan. Throughhistorical data analysis and big data model calculations, we have implemented intelligent risk warning alerts for risksspanning from sales to delivery processes, including contract and software authorization risks, thus avoiding potentialfinancial losses.While promoting the implementation of risk control projects, we simultaneously carried out awareness campaigns on riskinternal control, reinforcing awareness and capabilities in business risk management. Additionally, we have expanded theevaluation dimensions and content of business controls, evaluating the outcomes of risk control projects based onvarious aspects, such as current business risk identification, accountability in business department management,rationality of operation process settings, and execution of management measures. Upon completion of risk controlevaluation projects, we promptly devised corrective action plans and schedules, oversaw their implementation, evaluatedthe effectiveness of rectification and supervision, and monitored progress, thereby establishing a closed-loopmanagement improvement process.In 2023 :
We proposed 325 suggestionsfor improvements for audits’
with292 entering the audit,rectification, and supervision stages
2023 Environmental,Social,and Governance (ESG) ReportABOUT THIS REPORTMESSAGE FROM THE CHAIRMANABOUT GLODONSUSTAINABLE DEVELOPMENT MANAGEMENT
Human RightsWe pledge our support for and adherence to the International Bill of Human Rights, encompassing the Universal Declaration ofHuman Rights, the International Covenant on Civil and Political Rights, the International Covenant on Economic, Social, and Cultural Rights,alongside the International Convention on the Elimination of All Forms of Racial Discrimination, the International Convention on theSuppression and Punishment of the Crime of Apaheid, the Convention on the Elimination of All Forms of Discrimination against Women, andthe Convention against Toure and Other Cruel, Inhuman or Degrading Treatment or Punishment. Embracing the International LabourOrganization's Declaration on Fundamental Principles and Rights at Work, we commit to extending these rights to both ouremployees and laborers directly or indirectly engaged within our supply chain. Our international operations are governedby clearly defined guidelines that promote the respect of human rights and discourage discriminatory practices (seesection 2.2.1 for specifics on safeguarding employee rights).We champion the rights of labor organizations and collective bargaining, condemn forced labor, prohibit the hiring anduse of child labor, and ensure employees are shielded from discrimination. Upholding principles of fairness, we promoteand accelerate equitable labor practice by providing labor remuneration not below the minimum wage level in anycountry or region where we conduct business.In our proactive approach to risk prevention and control, we adopt thorough assessments of human rights-related risks(see section 3.1.3 for detailed information on enhancing risk prevention and control procedures). Furthermore, we carryout human rights due diligence investigations across our company's operations, business activities, and within our valuechain to identify pertinent risks and avoid any involvement in actions that violate human rights. Our robust frameworkincludes comprehensive complaint mechanisms and investigation procedures; therefore, once misconduct is found,immediate action will be taken to halt it, followed by quick and effective resolution.
GREENGOODWILLGROWTHAPPENDIX
Antitrust PracticesWe strictly comply with laws and regulations in our operating jurisdictions, including the EuropeanCompetition Law and the Anti-Unfair Competition Law of the People’s Republic of China. We actively fortifyour compliance system to combat antitrust practices, issuing the Antitrust Compliance Guidelinesand establishing a compliance management framework comprising decision-making, execution,and operational teams. Leading by example, the Chairman, management, and business headsof the company pledge their commitment to antitrust compliance by signing the AntitrustCompliance Commitment and conscientiously fulfilling their obligations. We refine our performanceevaluation mechanisms for antitrust compliance management to preempt and mitigate the riskof antitrust violations, thereby bolstering our competitive edge in the market.We maintain transparent channels for consultation and reporting on antitrust compliance issues,offering dedicated hotlines and email addresses for antitrust inquiries, enabling preemptiveconsultations and risk mitigation. This setup ensures the bottom-up unimpeded reportingmechanism of internal misconduct and guarantees a closed loop across the entire complianceprocess by steps including receiving report information, recording report content, assessingrisks, verifying and reviewing business lines, and following up on the report, so as to maintainregulatory compliance throughout.Proactively engaging in antitrust compliance training, we offer comprehensive programs for theexecutives and all employees, complemented by specialized training and assessments tailoredto relevant operations, department leaders and staff. Moreover, we develop educationalmaterials and exams on antitrust compliance, curating relevant courses accessible via ourlearning and development platform for employee’s learning and growth. In 2023, we organized10 anti-monopoly compliance system trainings and recorded 11 online courses.
Business Ethics
We place paramount importance on the Glodon’s business ethical conduct and reputation andadhere to legal regulations, rigorously combating antitrust activities, unfair competition, andcorruption. In the year 2023, Glodon initiated and transferred 2 cases of duty encroachment tothe judiciary, and 1 case of competition concluded in the first instance, with no significantnegative impact on our operation. These experiences served as pivotal lessons, driving us tocontinuously enhance the legal awareness and knowledge of our employees while upholdingthe fundamental tenets of business ethics.
2023 Environmental,Social,and Governance (ESG) ReportABOUT THIS REPORTMESSAGE FROM THE CHAIRMANABOUT GLODONSUSTAINABLE DEVELOPMENT MANAGEMENT
Anti-Unfair Competition
We meticulously abide by international regulations, including the World IntellectualProperty Organization's Model Provisions on Protection Against Unfair Competition, China'sAnti-Unfair Competition Law, and other local laws governing unfair competition in ouroverseas operating regions. We have also enacted and published the Manual forIdentifying and Addressing Unfair Competition and the Quick Guide to Identifying and AddressingUnfair Competition, tailored to our company's competitive landscape. These documentsoutline and explain instances of unfair competition that require attention in ourbusiness operations, thereby helping the company enhance its coordination andcapabilities in unfair competition response. In 2023, we conducted 6 sessions oftraining on combating commercial bribery, filed one complaint related to unfaircompetition and dozens of lawsuits related to intellectual property rights infringementto safeguard our interest.
GREENGOODWILLGROWTHAPPENDIX
Anti-Corruption ManagementWe strictly comply with the Criminal Law of the People’s Republic of China and pertinentanti-corruption laws and regulations in the jurisdictions where we operateoverseas. We actively strengthen our integrity and compliance system, drawingup institutional documents such as the Whistleblowing and Investigation ManagementSystem, Declaration of Conict of Interest, and the Transparency Declaration, while revisingthe Employee Code of Conduct. These policies clearly outline Glodon's regulationsregarding corruption, bribery, and bottom lines of employee conduct, supportedwith relevant control and punitive measures, fostering a culture of integrity,incorruptibility, and fairness in the workplace.We strengthen the management of clean reporting and investigation,, updatedthe Reporting and Investigation Management, and established a reporting rewardmechanism, providing rewards to individuals for verified reports. In order toprotect whistleblowers, we have strengthened the protection mechanism forthem, managing reporting channels through dedicated lines, strictly maintainingthe confidentiality of whistleblower information, assigning dedicated personnel tomanage reported issues, and ensuring the safety of whistleblowers.We strived to comprehensively foster an anti-corruption culture and atmosphere,regularly disclosing employees’ misconducts or violations of law and regulations,delivering lectures on integrity culture and creating a transparent workenvironment for directors, senior management, and all staff to prevent fraudulentbehavior. We have organized integrity empowerment activities for seniormanagement and conducted incorruptibility training for new employees, with a50% coverage rate of integrity examination for new recruits.We attach great importance to the integrity and incorruptibility management ofour suppliers, strictly enforcing Integrity Commitment, Declaration of No Conflictof Interest, and other institutional documents targeting suppliers. We eitherdeduct points or initiate an exit mechanism for suppliers who break theircommitments, depending on the severity of the situation. We encourage ourcooperative suppliers to report corruption and bribery, cracking down on internaland external collusion and fraudulent activities between suppliers, and promptlyhandling fraud cases under the law. In 2023, we imposed a penalty of 1.5 millionyuan on the suppliers violating regulations. We promoted a culture of integritywithin the company to prevent misconduct. By the end of 2023, our integrityculture outreach among suppliers reached 90%, and we sent integrity reminderletters to all suppliers, covering 100% of them.
In 2023:
anti-corruption trainingcourses were held
Dealt with and punished9 employeesfor violations of discipline and lawTransferred
3 to judicial organs
Organized
12 lectures
on the integrity culturCovering80%of key departments
Handled
6 reported casest
with a return rate of100%satisfaction rate of100%
90.45%
of suppliers signedthe Integrity Commitment
2023 Environmental,Social,and Governance (ESG) ReportABOUT THIS REPORTMESSAGE FROM THE CHAIRMANABOUT GLODONSUSTAINABLE DEVELOPMENT MANAGEMENT
Intellectual Property Protection
We hold intellectual property right (IPR) protection in high regard, strictly adhering to pertinent laws and regulationsgoverning intellectual property protection in our operational jurisdictions, such as the European Patent Convention.Continual refinement of our intellectual property management system is of paramount significance, accomplishedthrough our revision and implementation of management protocols like the Source Code Management, Patent Management, andCopyright Management, seamlessly integrating intellectual property protection across the entire lifecycle of our products.Our approach includes a deep respect for the intellectual property rights of others, with measures in place to mitigateinfringement risks, including the establishment of anti-infringement audits. Prior to product launches, rigorous intellectualproperty compliance reviews are conducted to preempt any potential infringement of legitimate intellectual propertyrights. Notably in 2023, a dedicated initiative on intellectual property compliance was launched, systematically scanningand cataloging the compliance status of all products. We revised and refined our IPR rules and regulations in terms ofimproving compliance standards within the integrated product development (IPD) processes, clarifying intellectualproperty ownership in business collaborations, and outlining inventor rewards within our protocols, thereby ensuring theprotection of external intellectual property rights holders, company partners, and internal inventors within our company.Moreover, Glodon’s Employee Code of Conduct delineates guidelines for employees’ use of software, reinforcing legitimatepractices, while our themed training sessions and activities bolster awareness of intellectual property rights protectionacross all staff members.Actively safeguarding the integrity of the market, we engage in the strategic deployment of relevant intellectual propertyassets overseas, ensuring the security of our international business operations and strengthening our IPR compliancemanagement. As of the close of 2023, we successfully established trademark protections framework in key regionsincluding the United States, European Union, United Kingdom, Japan, and Southeast Asia. Additionally, we assisted clientsin securing software copyrights, and collaborated with law enforcement to fight against illicit infringement activities,contributing to a robust and sound intellectual property ecosystem. Our efforts extend to legally addressing instances ofsoftware piracy and bringing down their retailers and hacker producers, collaborating with law enforcement agencies toapprehend offenders, thereby mitigating risks to product quality and information security to our users, and safeguardingthe legitimate rights of authorized users.
In 2023 :
successful trademarks registration
internal events centered on intellectual propertythemes were carried out
GREENGOODWILLGROWTHAPPENDIX
Privacy and Data Security
We stress a paramount emphasis on data compliance and information security, leveraging comprehensive datamanagement as a cornerstone to build and perform a robust data security protection system, fortifying defenses for bigdata applications of all kinds. We work to intensify information security protection measures across all phases andestablish stringent data security emergency response plans. Upholding ethical standards in technology, we responsiblyemploy artificial intelligence technologies, rigorously controlling data assets, and unleashing data value while ensuringinformation and privacy security. We take steady measures to enhance security operational monitoring capabilities anddelve into potential network security risks faced by our operations, providing effective and tailored security measures inline with client demands, and achieving systematic and comprehensive management of network security risks. Byceaselessly refining our vulnerability closure mechanisms, we bolster our risk response capabilities to safeguard stablebusiness operations.We strictly regulate our own data collection, storage, and usage behaviors, adhering to legal regulations such as the EU’sGeneral Data Protection Regulation (GDPR) and the Cybersecurity Law and Data Security Law of the People's Republic of China, and otherregulations in the jurisdiction . Based on ISO27001:2013 standards, we have obtained certification for our InformationSecurity Management System. Enhancing our management systems, we have newly issued the Information Security Policy andStrategy and Data Compliance Management, strengthening compliance in network security and data security, and we have alsorevised protocols such as the Email Management and Internal Access Management. We have established comprehensive securitymanagement requirements covering the entire lifecycle of data from generation, storage, usage, transmission todestruction, and delineated departmental responsibilities for data compliance within protocols, clarifying responsibilityboundaries. Designating data asset managers responsible for executing data compliance management protocols, weadvance a series of data compliance management measures including risk scenario analysis for managed data. Weconduct periodic data security audits to support security traceability and incident analysis, ensuring the stability,continuity, and integrity of company data systems. Furthermore, we maintain open channels for data security consultationand reporting, requiring employees to promptly intervene upon discovering data violations. Strengthening emergencyresponse capabilities, we have established full-process emergency response rules from incident prevention, monitoring,reporting, and handling to disclosure and review. What should be mentioned is that the majority of our overseas dataprocessing is managed by our overseas subsidiaries, so generally, customer data from overseas does not involvecross-border transmission.In terms of security design, we support multi-authentication methods based on identity tokens, employ strong passwordpolicies to detect user password complexity, set dynamic random verification codes, and impose login timeout limits toensure user authentication security. Moreover, we adopt HTTPS security protocols and SSL encrypted transmission toensure user access security. Function permissions, data permissions, and operation audit systems are established tostrengthen overall control, permission refinement, and security scanning to safeguard application security. Last but notleast, measures such as data backup, data access authorization control, and encryption of sensitive data storage are alsoadopted to ensure data security.
2023 Environmental,Social,and Governance (ESG) ReportABOUT THIS REPORTMESSAGE FROM THE CHAIRMANABOUT GLODONSUSTAINABLE DEVELOPMENT MANAGEMENT
With regard to security monitoring, we enhance our automated product securitycapabilities, executing various security scans more than 800 times cumulatively. Wepromote security operational monitoring capabilities, identifying and addressing 87suspicious intrusion incidents and product security risk events, achieving a 100%closed-loop resolution. We improve vulnerability closure mechanisms, issuing a totalof 18,550 security vulnerability notices for SaaS products, covering 3,827vulnerabilities and weak passwords., with a cumulative repair rate of over 40% within10 days and over 74% within 30 days as of the end of 2023.Moreover, fully leveraging our professional expertise, we participate in enactingstandards such as the Process and Technical Specification for Data Authorization,contributing our knowledge of data compliance to the construction industry.Additionally, we have contributed to the Privacy Engineering White Paper, sharing ourexperience in corporate privacy construction.
In 2023:
incidents of dataleakage occurred
Image: The “Micro-Isolation Practice of GlodonData Center” project effectively controls thenetwork traffic of thousands of workloads throughmicro-isolation systems, comprehensivelyenhancing internal network security protection,and effectively safeguarding customer datasecurity and privacy.
Image: As an expert in data compliance, Glodonparticipates in the Fourth Data GovernanceSeminar, and delivers a keynote speech,profoundly discussing issues related to innovativedata management and relevant legal systems fordata governance.
GREENGOODWILLGROWTHAPPENDIX
TonsKitchen Waste
Tons
Waste Fluorescent Tubes
TonsWaste Toner Cartridges andInk Cartridges
TonsTotal Water Consumption
TonsTotal FreshwaterConsumption
TonsRecycled Water
TonsWater Consumption DensityTons/million yuan
Emissions
WaterResources
Key Performance Indicators
Social PerformancePerformance IndicatorSub-IndicatorUnit2020202120222023
Total Number of Employees8213------
948610683Number of Male Employees491058736489Number of FemaleEmployees
330336134194Number of Ethnic MinorityEmployees
457511558Number of New RecruitsDuring Reporting Period
231627842971Number of Part-timeEmployees
//0
1034962594090
1874
Employment
Environmental PerformancePerformance IndicatorSub-IndicatorUnit
Total Office PaperConsumption
Tons
The environmental performance statistics scope in 2023 covers the office buildings in Beijing, Shanghai, and Xi'an. From 2020 to 2022, the statistics scope only included theheadquarters building in Beijing.The statistics of domestic waste combine household waste and office waste.The total water consumption of water consumption from 2020 to 2022 is only counted for the Beijing headquarters building, so it is not possible to calculate the waterconsumption density.
Total Carbon EmissionsTons of CO
EquivalentScope 1 CarbonEmissions Total
Tons of CO
EquivalentScope 2 CarbonEmissions Total
Tons of CO
EquivalentTotal Purchased ElectricityMillion kWhTotal Natural GasConsumption
Thousand Cubic MetersTotal Gasoline ConsumptionTons
134.96
63.00
0.30
0.20
64861.9664441.96
420.00
/
2020
29.50
5519.39//
5.96
70.00
16.00
124.50
49.20
0.30
0.26
28660.0028250.00
410.00
/
2021
14.30
3515.68//
5.25
49.00
8.45
140.50
34.00
0.04
28904.0028474.00
430.00
/
2022
6.00
3187.27
142.67
3044.60
5.34
53.00
9.60
856.78
312.48
0.41
0.15
109689.00106145.003544.00
16.81
2023
11.16
9121.02
15.37
9105.65
16.09
95.80
5.18
Response toClimate Change
Energy Use
Resource Use
Applendix
Domestic Waste
2023 Environmental,Social,and Governance (ESG) ReportABOUT THIS REPORTMESSAGE FROM THE CHAIRMANABOUT GLODONSUSTAINABLE DEVELOPMENT MANAGEMENT
Performance IndicatorSub-IndicatorUnit2020202120222023
---------------
Number of Full-timeEmployees
8213948610683Number of Interns//151Number of ChineseEmployees
8005925410403Number of ForeignEmployees
208232280
10349
10093
Number of Employeesbelow 30 Years Old
4463480537423831Number of EmployeesAged 30-50
3707462468296440Number of Employeesover 50 Years Old
435711278Number of SeniorManagement Employees
///34Number of MiddleManagement Employees
///851Number of General Employees///8965Number of Employees witha Doctor's Degree
/435156Number of Employees witha Master's Degree
/142117591961Number of Employeeswith a Bachelor's Degree(Joint degree included)
/714680427677Number of Employees withCollege Diploma or Lower
/876795655Proportion of EmployeesCovered by Five Social Insuranceand One Housing Fund
%100100100100Coverage Rate of LaborContract Signing
%100100100100Total Employee Turnover Rate%19.0024.0018.0020.35Male Employee Turnover Rate%20.0025.0020.0021.25Female Employee Turnover Rate%18.0021.0015.0018.97
Number of GeneralManagement Employees
///499
Employment
Employee Turnover Rate over 50
%
14.0011.009.0016.67Chinese Employee Turnover Rate
%
19.0024.0018.0020.56Foreign Employee Turnover Rate
%
37.0029.0021.0012.11%%
EmployeeDevelopment
Employee Turnover Rate below30 Years Old
27.0032.0030.0028.14Employee Turnover RateAged 30-50
12.0018.0013.0015.76
GREENGOODWILLGROWTHAPPENDIX
Total Number of Suppliers107583718363246Total Number of ChineseSuppliers
//18363233Total Number of OverseasSuppliers
//013Number of ManufacturingSuppliers Assessed forEnvironmental and Social Risks
///26Supply ChainManagement
Performance IndicatorSub-IndicatorUnit2020202120222023
Average Training Hoursper Male Employee
36.9226.7022.5416.89Average Training Hoursper Female Employee
Hours per person
38.9925.5020.6218.70Average Training Hours perSenior Management Employee
Hours per person
89.3395.3391.3386.00Average Training Hours per MiddleManagement Employee
Hours per person
81.0083.0069.7278.50Average Training Hours perGeneral Management Employee
Hours per personHours per person
///24.02Average Training Hours perGeneral Employee
Hours per person
//21.6516.21Number of Fire DrillsTimes22213Occupational HealthExamination Rate
%100100100100Annual Leave Rate%37.3538.2838.5839.00Maternity Leave Rate%100100100100Number of Deaths due toOccupational Injuries
-0110Death Rate due toOccupational Injuries
%00.010.0090Number of Workdays Lostdue to Occupational Injuries
-
-
-
-
-
064354193
Overall Rate of Trained Employee62.8093.0098.0096.75Rate of Trained Male Employee63.8093.0098.0097.89Rate of Trained FemaleEmployee
%
63.2093.0098.0095.01Senior ManagementTraining rate
%
///91.18Middle ManagementTraining rate
%
78.0080.0098.1999.29Genreral ManagementTraining rate
%
80.0082.0098.5897.80Total duration ofemployee training
Ten thousand hours//21.5018.20Genreral EmployeeTraining rate
%
%
%///96.48EmployeeDevelopment
Healthand Safety
2023 Environmental,Social,and Governance (ESG) ReportABOUT THIS REPORTMESSAGE FROM THE CHAIRMANABOUT GLODONSUSTAINABLE DEVELOPMENT MANAGEMENT
Proportion Rate of SuppliersSigning Corporate SocialResponsibility
//39.1092.60Supplier Audit FrequencyTimes///60Number of Suppliers Improvedafter Audit
-
--
--
-//1735
Total Amount of SocialCharity Donations
Million Yuan5.778.1718.3418.76
Number of Suppliers TerminatingCooperation after Audit
//390Number of Donors to theFamily Fund
3648394231832305Total Amount of Donations toFamily Fund
Million Yuan1.111.391.161.84Number of Visiting Employeesand Their Families
94108120135Number of EmployeeVolunteer Activities
213357399283
Supply ChainManagement
Employee Care
CommunityContributions
Performance IndicatorSub-IndicatorUnit2020202120222023
The names and calibers of some of the indicators have been adjusted, so it is not possible to count the data of previous years.
Economic Performance
Performance IndicatorSub-indicatorUnit2020202120222023
Total AssetBillion Yuan9.5510.0711.5510.68Operation RevenueBillion Yuan3.955.566.556.53Total ProfitBillion Yuan0.410.761.080.15Asset-Liability Ratio%31.3137.6941.0940.25Number of Patent Applications-127210155138Number of Patent Granted-94182959Number of RegisteredSoftware Copyrights
-878028185Number of RegisteredTrademarks
-651687844Total R&D InvestmentBillion Yuan1.341.631.861.96R&D Investment Proportionof Operating Revenue
%33.9329.2328.3630.09R&D Personnel Proportionof Company Employees
%40.0541.4640.6145.43Survey Results ofProduct Satisfaction
Points8887.687.587.7Complaint Handling Rate (UserFeedback Resolution Rate)
%100100100100
OperationalEfficiency
Research andDevelopment(R&D)
GREENGOODWILLGROWTHAPPENDIX
GRI IndexDisclosure ItemPosition
2-1 Organizational details2-2 Entities included in the organization’s sustainability reporting2-3 Reporting period, frequency and contact point2-4 Restatements of information2-5 External assurance2-6 Activities, value chain and other business relationships2-7 Employees2-8 Workers who are not employees2-9 Governance structure and composition2-10 Nomination and selection of the highest governance body2-11 Chair of the highest governance body2-12 Role of the highest governance body in overseeing the management of impacts2-13 Delegation of responsibility for managing impacts2-14 Role of the highest governance body in sustainability reporting2-15 Conflicts of interest2-16 Communication of critical concerns2-17 Collective knowledge of the highest governance body2-18 Evaluation of the performance of thehighest governance body2-19 Remuneration policies2-20 Process to determine remuneration2-21 Annual total compensation ratio2-22 Statement on sustainable development strategy2-23 Policy commitments2-24 Embedding policy commitments2-25 Processes to remediate negative impacts2-26 Mechanisms for seeking advice and raising concerns2-27 Compliance with laws and regulations2-28 Membership associations2-29 Approach to stakeholder engagement2-30 Collective bargaining agreements3-1 Process to determine material topics3-2 List of material topics3-3 Management of material topics203-1 Infrastructure investments and services supported203-2 Significant indirect economic impacts205-1 Operations assessed for risks related to corruption205-2 Communication and training about anti-corruption policies and procedures
P5P2P2P2P93P10P87P90P75P75P75P12P12P12P76P12P12P12Refer to Annual ReportRefer to Annual ReportRefer to Annual Report
P11P80P79P79P34P81P53P13P34P14 P14P14P69P53P83P83
2023 Environmental,Social,and Governance (ESG) ReportABOUT THIS REPORTMESSAGE FROM THE CHAIRMANABOUT GLODONSUSTAINABLE DEVELOPMENT MANAGEMENT
P83P82Refer to Annual ReportRefer to Annual ReportRefer to Annual ReportRefer to Annual Report
P87P22P87P87P25P20P20P21P15P87NonexistentNonexistentP47P47P87P36P34P88P37P39P88Refer to Annual Report
NonexistentP34P34P47P47P47NonexistentNonexistentNonexistent
Disclosure ItemPosition
205-3 Confirmed incidents of corruption and actions taken206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly practices207-1 Approach to tax207-2 Tax governance, control, and risk management207-3 Stakeholder engagement and management of concerns related to tax207-4 Country-by-country reporting302-1 Energy consumption within the organization302-2 Energy consumption outside of the organization302-3 Energy intensity302-4 Reduction of energy consumption302-5 Reductions in energy requirements of products and services305-1 Direct (Scope 1) GHG emissions305-2 Energy indirect (Scope 2) GHG emissions305-3 Other indirect (Scope 3) GHG emissions305-4 GHG emissions intensity305-5 Reduction of GHG emissions305-6 Emissions of ozone-depleting substances (ODS)305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions308-1 New suppliers that were screened using environmental criteria308-2 Negative environmental impacts in the supply chain and actions taken401-1 New employee hires and employee turnover401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees401-3 Parental leave404-1 Average hours of training per year per employee404-2 Programs for upgrading employee skills and transition assistance programs404-3 Percentage of employees receiving regular performance and career development review405-1 Diversity of governance bodies and employees405-2 Ratio of basic salary and remuneration of women to men406-1 Incidents of discrimination and corrective actions taken408-1 Operations and suppliers at significant risk for incidents of child labor409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor414-1 New suppliers that were screened using social criteria414-2 Negative social impacts in the supply chain and actions taken417-1 Requirements for product and service information and labeling417-2 Incidents of non-compliance concerning product and service information and labeling417-3 Incidents of non-compliance concerning marketing communications418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data
GREENGOODWILLGROWTHAPPENDIX
Export ReviewsIn the Glodon Company Limited 2023 Sustainability Report, Iobserved Glodon's warmth and dedication, and I am sincerelydelighted to see Glodon continuously making solid strides onthe path of sustainable development.The report clearly presents Glodon's strategic layout forsustainable development. Glodon's goals and vision forsustainable development align with its corporate objectivesand pace of development, deepening the company'scorporate culture and social responsibility genes within itscore responsibilities. This alignment of ideology and practiceintegrates Glodon’s growth with sustainable development.Moreover, the strategic model comprehensively breaks downGlodon's understanding of corporate social responsibility andsustainable development, providing all stakeholders with aclear outline of the company's sustainable development layoutand value positioning. The report's main framework iscentered around the strategic model, with rigorous logic anda clear main thread.The report fully showcases Glodon's governance capabilities inresponse to opportunities and risks. It precisely focuses onmaterial topics concerning the various dimensions. From theperspective of the environment, Glodon actively responds tothe Paris Agreement by developing tools such as carbonemission measurement cloud platforms to promote energyconservation, emission reduction, and efficient resourceutilization in the construction industry. Glodon has also built anecological information model and digital twin technologyplatform to facilitate smart environmental governance, makingpositive contributions to addressing global climate change andbiodiversity protection. In the social dimension, Glodon delvesinto various key technologies for research and innovation,achieving multiple accomplishments and establishingindustry-open platforms to cultivate digital talents for theentire industry's high-quality development. Comprehensivemanagement measures for industry-focused risk issues suchas data security have been disclosed, effectively meetingstakeholder expectations.The content of the report reflects distinct Glodoncharacteristics. Themed around Digital Intelligence, Quality,and Governance, the report demonstrates how Glodon,
through providing digital software and hardware products,solutions, and related services, aligns with and satisfies thedigital transformation requirements of the constructionindustry. Furthermore, Glodon develops new qualityproductive forces, leveraging its advantages in independentBIM, big data and other information technologies to provideinnovative solutions for urban construction, operation, andrenewal. By integrating and sharing information, Glodonenhances the refinement and intelligence of projectmanagement, driving high-quality development in theconstruction industry and fully delivering the value thatGlodon creates for stakeholders based on its business edges.Overall, I believe the Glodon Company Limited 2023Sustainability Report, is a comprehensive and vivid document,fully showcasing its efforts and achievements in theenvironmental, social, and governance fields. It also reflectsGlodon's high regard and steadfast commitment tosustainable development. I hope Glodon will continue todeepen and solidify its path of sustainable development,creating broader social value and achieving morebreakthroughs and accomplishments.Xiaoguang WangMember of the Chinese expert working group for the ESGCoordinating Committee of ISO (ISO/ESG CC)
2023 Environmental,Social,and Governance (ESG) ReportABOUT THIS REPORTMESSAGE FROM THE CHAIRMANABOUT GLODONSUSTAINABLE DEVELOPMENT MANAGEMENT
Terminology Interpretation
It refers to Glodon’s ninth three-year strategic plan, covering the period from 2023 to 2025.The Ninth Three-Year Strategy
Digital Building
Digital Design
SaaS
BUG
Artificial Intelligence (AI)
Construction Project Lifecycle
CIM
BIM
Digital building refers to the industry strategy of promoting transformation and modernization of the
construction industry with information technologies such as BIM, cloud computing, big data, IoT, mobile
internet, and AI. The strategy employs advanced lean construction methods and integrates people, processes,
data, technologies, and business systems to make all construction processes, factors and stakeholders online,
digital, and smart. It creates a new ecosystem that involves projects, enterprises and the entire industry. By
promoting industrial innovations featuring digital design, construction and O&M approaches, Glodon aims to
improve the industry and achieve the goal of making every project a success.
A methodology driven by digitalization and engineering data integration, establishing a unified collaborative
work model encompassing the whole process, all design factors, and all participants involved in the design
phase. This approach facilitates pre-simulation of construction and operational scenarios during the design
phase, enabling fully digital prototypes and integrated delivery solutions. Its objectives include enhancing
design efficiency, fostering project collaboration, expanding enterprise operations, improving industry
supervision and regulation, and ultimately empowering the digital transformation and advancement of the
design sector, ensuring the success of every engineering project.
BIM refers to Building Information Modeling, a modeling approach that leverages diverse construction
project-related information and data as the foundation for building models, enabling the simulation of
real-world building information through digital means.
CIM refers to City Information Modeling, it is an integrated modeling approach grounded in technologies such
as Building Information Modeling (BIM), Geographic Information Systems (GIS), and the Internet of Things (IoT).
CIM synthesizes multi-dimensional and multi-scale city model data, incorporating above-ground and
underground, indoor and outdoor, historical and future data, along with urban perception data, to establish a
comprehensive and sound city information complex within a three-dimensional digital space.
SaaS means Software-as-a-service, which is an innovative software application model where vendors host
application software on servers, allowing customers to subscribe to tailored application software services
based on their specific needs. Customers may pay fees corresponding to their subscribed services and
duration, receiving related services in return.
BUG means software defects, which refers to problems, errors, or hidden functional flaws present in computer
software or programs, impeding their normal operation and potentially damaging users’ demands and
experience.
Artificial Intelligence (AI) represents a burgeoning technology dedicated to studying, developing, and applying
theories, methodologies, technologies, and application systems aimed at simulating, extending, and
augmenting human intelligence.
The entire lifecycle of engineering project encompasses the whole process of construction project, from the
project approval to its completion, utilization, and eventual obsolescence. This lifecycle typically spans the
phases including, feasibility analysis, design, tendering (trade or purchasing), construction, operation and
maintenance, and project demolition.
GREENGOODWILLGROWTHAPPENDIX
Reader FeedbackDear Readers,Thank you for taking the time to read and review the Glodon Company Limited2023 Environmental, Social, and Governance (ESG) Report. We highly value and eagerly await your feedbackon Glodon's sustainable development management, practices, and information disclosure. Your opinions andsuggestions serve as essential guidance for our continuous advancement in management and practices ofsustainable development. We sincerely look forward to hearing from you! Please provide your feedback byanswering the following questions
Open-ended Questions:
1．What aspects of this report are most satisfactory to you?2．Do you have any additional comments or suggestions regarding our report and accountability practices?Please assist us by completing the feedback form and sending it back to us via:
Multiple-Choice Questions (Please check the corresponding box):
1．Which of the following stakeholder categories do you belong to?Government/Regulatory Agencies Shareholders/Investors Clients Partners/Suppliers Employees Community/Social Public Others2．How do you rate the report's responsiveness and disclosure regarding stakeholder concerns? Excellent Good Fair Poor Very Poor3．Do you believe this report adequately reflects Glodon's significant impacts on the economy,society, and the environment? Excellent Good Fair Poor Very Poor4．How would you rate the report's readability, including its logic, content design, language, andformatting? Excellent Good Fair Poor Very Poor
Telephone: 86-10-56403000Company Website: www.glodon.com/en/Contact Address: E-13,10 Xibeiwang East Road, Haidian District, Beijing, China.Zip Code: 100193Email: esg@glodon.comThank you for your cooperation and valuable feedback!
This report is made ofbiodegradable recycled paper
www.glodon.com/en/
Stock Code: 002410
ENVIRONMENTAL, SOCIAL ANDGOVERNANCE (ESG) REPORT
Glodon Company Limited
2023
Making Every Project A Success