Intelligent Governance: Building Resilience through ESG Integration

ZTT has built a modern governance framework based on strategic leadership, effective risk management, and transparent accountability. Through organizational improvement, system optimization, and digital innovation, we strengthen governance capabilities and support sustainable long-term growth.

A New Paradigm for ESG-Integrated Governance: Driving Sustainable Value through Transparent Frameworks

We have established a three-tier governance framework that integrates strategic decision-making by the Board of Directors, specialized oversight by committees, and real-time risk management through our digital risk control platform. By implementing an independent director system and promoting a diverse board composition, we ensure the scientific rigor of our decisions. We also link ESG performance to executive compensation, creating a closed-loop governance structure. Additionally, we have implemented comprehensive risk control mechanisms covering anti-corruption compliance, data security, and supply chain responsibility. Our transparent disclosures, verified by independent audits, build a governance ecosystem aligned with international sustainability standards.

Governance Ambition: Building an Internationally Recognized, ESG-Integrated Board and Smart Risk Management Benchmark

We are strengthening our governance framework through clear, time-bound objectives. By 2025, we increased female representation on the Board, ensured that all specialized Board committees were chaired by independent directors, and integrated ESG metrics into executive long-term incentive plans. By 2027, we aim to establish a digital platform for real-time monitoring of supply chain compliance and carbon data, accelerating digital governance across the organization. By 2030, we plan to implement internationally recognized management systems covering anti-corruption, information security, and climate-related risks, further enhancing governance excellence and sustainability integration.

Our Actions

Governance Architecture: Strategic Design at the Top

We have established a three-tier governance framework comprising strategic oversight by the Board of Directors, specialized supervision by dedicated committees, and real-time risk control through a digital platform—ensuring ESG considerations are fully embedded across strategy formulation and day-to-day operations.

A Professional and Diverse Board

We have strengthened our Board with independent directors and key committees—including Strategy & ESG, Audit, and Remuneration—to ensure expert oversight and informed, accountable decision-making.

Proactive and Intelligent Risk Management

We identify, assess, and manage environmental risks through a structured risk management process. By leveraging digital tools for real-time monitoring and early warnings, we continuously strengthen our environmental risk management capabilities.

A Culture of Integrity and Compliance

We enforce a zero-tolerance approach to corruption through our Anti-Bribery Policy, requiring all employees to sign integrity pledges. We also deliver anti-corruption training to suppliers and maintain multi-channel, confidential reporting and whistleblower protection mechanisms to foster a robust compliance culture.

Robust Information Security and Data Protection

Under the leadership of our Information Security Committee, we have implemented a holistic cybersecurity framework. This includes Level 3 Certification under China’s Multi-Level Protection Scheme (MLPS), regular penetration testing, and vulnerability scanning to safeguard networks, data, and privacy across the organization.

Our Achievements

Enhanced Governance Efficacy

In 2024, our Board held 10 meetings, deliberating 47 key proposals. With female directors representing 11.11% and independent directors making up 33.33% of the Board, we have strengthened both the scientific rigor and inclusiveness of our governance decisions.

Outstanding Risk Management Outcomes

Through our dedicated “Risk Awareness Day” initiative, we identified 40 critical risk points—all of which were fully addressed through closed-loop remediation. Our Lost Time Injury Frequency Rate (LTIFR) dropped to 0.45 per million work hours, reflecting significant progress in operational risk control.

Comprehensive Compliance Coverage

We conducted anti-corruption risk assessments across 58 operational sites, delivered mandatory training to 100% of our governing members, and engaged 704 suppliers in compliance training. This systematic approach resulted in zero corruption-related litigation for the year.

Robust Information Security Defenses

99 systems underwent penetration testing and vulnerability scanning. Our information systems achieved a score of 87.08 in China’s Level 3 Multi-Level Protection Scheme (MLPS) assessment, with no major cybersecurity incidents reported during the year.