MSCI Upgrades Tongcheng Travel’s ESG Rating to AA Attains Highest Rating in the Hotel and Travel Industry
- Written by The Bulletin
HONG KONG SAR - Media OutReach - 3 October 2022 - Tongcheng Travel Holdings Limited ("Tongcheng Travel" or the "Company", and its subsidiaries (collectively, the "Group"), stock code: 0780.HK), an innovator and leader in China's online travel industry, has received an upgraded AA rating in MSCI's latest Environmental, Social and Corporate Governance ("ESG") rating released in late September 2022.
AA is currently the highest rating accorded to hotel and travel industry players. The upgrade reflects the high recognition Tongcheng Travel has gained from the international rating agency and the capital market in respect of its ESG commitment and performance.
As early as 2021, Tongcheng Travel established an ESG and Data Security Committee to formulate the Company's ESG vision, goals and strategies on the corporate organizational level to comprehensively improve its ESG capabilities. Tongcheng Travel has long been recognized for its ESG performance and has previously been included in the "MSCI Emerging Markets ESG Focus Index" and the "Hang Seng Climate Change 1.5°C Target Index". It has also been bestowed awards such as "Emerging Responsible Enterprise of the Year" 1, "Corporate ESG Practice of the Year Award" 2 and "Green Practice Pioneer Project" 3 from various organizations.
According to the MSCI report, the upgrade to AA is based on Tongcheng Travel's strong improvements in labour management, user privacy and data security.
In the latest MSCI ESG rating, Tongcheng Travel ranks amongst the top 5 industry players in the hotel and travel industry with respect to its labour management. It is committed to establishing harmonious labour relations, protecting the legal rights of employees, providing an equal, diversified, healthy and safe working environment, and establishing an up-to-date training system under the value of "Pursuing Innovation" to enable employees' career advancement. In 2021, more than 95% of its employees received training, with an average 7.3 hours of training per capita.
In terms of privacy and data security, Tongcheng Travel has established a comprehensive user information security management system by formulating rules and regulations such as the "Administrative Measures for the Information Security of Tongcheng Travel" in accordance with the information security requirements of relevant laws and regulations. Tongcheng Travel has obtained ISO 27001 information security system certification. At the same time, it has formulated the "Tongcheng Travel User's Privacy Policy" to clearly explain to users how the platform manages the process of collecting, storing, and using their personal information. The Company has also set up a complaint channel and feedback mechanism for user privacy issues.
Tongcheng Travel said that the Company will continuously improve ESG-related policies and practices, further promote ESG governance standards, and take practical action to fulfill its social responsibility to provide greater value to users and society.
MSCI ESG Ratings aims to measure a company's management in financially relevant ESG risks and opportunities. It uses a rules-based methodology to identify industry leaders and laggards according to their exposure to ESG risks and how well they manage those risks relative to peers. It also rates equity and fixed income securities, loans, mutual funds, ETFs and countries.
1：The "Emerging Responsible Enterprise of the Year" (年度新銳責任企業) award was presented at the "14th Annual China Corporate Social Responsibility Conference" (第十四屆中國企業社會責任年會) held by NFZM
2：The "Corporate ESG Practice of the Year Award" (年度企業ESG實踐獎) was presented at the "2021 ESG Pioneer 60" (2021 ESG先鋒60) award presentation ceremony organized by Shanghai United Media Group | Jiemian
3：The "Green Practice Pioneer Project" (綠色實踐先鋒項目) award was presented at the "Qingxin 2022 Green Practice Pioneer Project" (清馨2022綠色實踐先鋒項目) event organized by National Business DailyHashtag: #TongchengTravel
About Tongcheng Travel Holdings Limited (HKSE Stock Code: 0780.HK)
Tongcheng Travel (formerly known as Tongcheng-Elong) is an innovator and market leader in China's online travel industry. It was formed out of the merger of Tongcheng and eLong, the leading online travel agencies in China, in 2018. It is a one-stop shop for users' travel needs. With the mission "make travel easier and more joyful", Tongcheng Travel offers a comprehensive and innovative selection of products and services covering nearly all aspects of travel, including transportation ticketing, accommodation reservation, tourist attraction ticketing, and various ancillary value-added travel products and services designed to meet users' evolving travel needs throughout their trips primarily through its online platforms, which comprise its Tencent-based platforms, its proprietary mobile apps, quick apps and other channels.
As a technology-driven company, Tongcheng Travel leverages big data and AI capabilities to better understand the preferences and behaviors of users, thereby offering users customized products and services. Tongcheng Travel has a strategic focus on lower-tier cities in China and seized opportunities there supported by its and diversified traffic sources, product innovation capability and flexible operation strategies. Through the in-depth understanding of user experience and advanced technological capabilities, Tongcheng Travel has been revolutionizing what consumers expect from the online travel industry, making the entire travel process more convenient, personalized and enjoyable than ever. Tongcheng Travel aims to develop and apply its advanced technology to transform from an online travel agency to intelligent travel assistant.
For more information, please visit the Group's website at https://www.tongchengir.com
