Overview

Kuaishou actively responds to the national goals of “carbon peaking and carbon neutrality”. In 2022, based on the prescribed emission reduction goals and implementation paths for clean energy use, energy conservation, water conservation, waste reduction and greenhouse gas emission reduction, we promoted and implemented various emission reduction measures in our business operations, and comprehensively promoted Kuaishou’s vision of building a green data center and realizing green operations. Kuaishou’s office building in Shanghai has obtained LEED (Leadership in Energy and Environmental Design) Platinum Certification and WELL (Healthy Building) Platinum Certification. Based on the framework proposed by the Task Force on Climate-related Financial Disclosure (TCFD), Kuaishou disclosed its governance, strategies, risk management, indicators and goals related to climate change risks, so as to enhance its own response capabilities and contribute to mitiagating global climate change.

Healthy Platform Ecosystem: Kuaishou actively fulfills its responsibilities to ensure the healthy development of its platform. We protect data security and user privacy, and coordinate and promote various tasks involving personal privacy and data security protection through good governance, management, technology and active industry cooperation. In 2022, we revised 14 data security-related institutional documents which cover 93% of Kuaishou's business scope with information security management system certification. We continue to improve the content review mechanism, strengthen content risk identification and management, and create a favourable community environment. We continue to promote e-commerce management, strictly enforce e-commerce access, review and exit mechanisms, to ensure compliance of the business ecosystem, and provide users with compliant and high-quality products and services. During the year, we continued to adhere to responsible procurement and green procurement, regularly assessed ESG risks of our suppliers, and promoted the sustainable development of our supply chain.

Optimal User Experience: Kuaishou insists on providing users with high-quality services. We enhanced the user service system and improved user communication channels and feedback mechanisms. We upheld the principle of “Equality and Inclusiveness” and provided users with “Equal and Inclusive” care and protection. In 2022, we revised 261 customer service systems, optimized standard customer service procedures and enriched user communication channels. During the year, we surveyed more than 250,000 users. We paid attention to and protected the healthy growth of minors by establishing a hotline for Kuaishou’s minor care plan, and strive to create a clean and safe cyberspace for teenagers.

Talent Development: Employees are the foundation of Kuaishou’s development. We respect all our staff and are committed to creating an equal and diverse working environment for employees by providing a sound and smooth career development path and establishing the talent recognition system. We pay attention to the welfare and occupational health and safety of our employees. Through various systems, actions and activities, we let employees feel our care and love, and enhance their sense of belonging to Kuaishou.

Social Contributions: Kuaishou is clearly aware of its responsibilities and missions as a corporate citizen, and adheres to the mission of “connecting good faith with technology and realizing the shared value of the platform”. Based on the principle of inclusive technology, Kuaishou has fully taken advantage of its products, technologies and communities, and actively contributed to rural revitalization by supporting vulnerable groups and protecting the ecological environment. In 2022, Kuaishou donated 22,726,000 RMB to public welfare projects, and contributed 16,319 hours to public welfare projects.

ESG Governance Structure: In 2022, leveraging the business nature, Kuaishou continued to promote sustainable development to fulfill social responsibilities. We continued to fortify our ESG governance and established a three-tier ESG governance structure, namely in terms of governance, management, and execution. The Corporate Governance Committee under the Board of Directors has been designated as the highest decision-making body, which comprehensively coordinates the ESG affairs of Kuaishou and it is fully in charge for the ESG management, decision-making and supervision.

Risk Management and Control: The Board is responsible for establishing and maintaining effective risk management and internal control systems and reviewing their effectiveness. To ensure the effectiveness of the risk management and internal control systems, in view of the practical needs, the Company adopts the “Three Lines of Defense” model as an official organizational structure for risk management and internal control under the supervision and guidance of the Board. In 2022, Kuaishou leveraged a risk matrix covering 5 major risk areas to maintain the appropriate and effective risk management and internal monitoring systems. This included strategic risk, market risk, operational risk, legal compliance risk, and financial risk. Senior management was invited to assess the possibility and impact of each of the risk events, leading to the 2022 annual Company-level risk assessment results. The Internal Audit and Internal Control Department formulated an annual internal audit plan for the identified major risks at the company level, conducted special audits on major risk events, and urged rectification of the problems found.

Business Ethics: Kuaishou adheres to the business ethics of integrity, credibility, honesty and self-discipline, and has zero tolerance for corruption, bribery, fraud, and other immoral acts. We constantly strengthen the development of our integrity and compliance and adhere to business operating standards and antitrust to create a healthy business atmosphere.  Kuaishou designated the Kuaishou Ethics Committee as the highest responsible body for the Company’s business ethics in order to improve the governance capabilities in business ethics. The Company has shifted its focus from actively cracking down on fraud cases to proactively preventing fraud with the efforts in strengthening the promotion of integrity culture, through advancement in multiple areas including the operational procedures and personnel settings.