China Aircraft Leasing : 2021 Environmental, Social and Governance Report

(Incorporated under the laws of the Cayman Islands with limited liability)

Stock code: 01848

2021

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

CONTENTS

2 4 7

About this Report

Message from CEO

About CALC

• 14 Stakeholder Engagement and Materiality Assessment

• 16 Corporate Governance

• 19 Sustainability

• 23 Workforce and Labour Practices

• 25 Giving Back

• 27 Awards, Accolades and Membership

• 28 Performance Data

• 31 ESG Reporting Guide Content Index

ABOUT THIS REPORT

This report is the eighth Environmental, Social and Governance ("ESG") report published by China Aircraft Leasing Group Holdings Limited ("CALC" or the "Company", together with its subsidiaries, the "Group"). We are pleased to present to our stakeholders this report, which highlights our commitments and progress in achieving environmental and social sustainability.

This report is available in both Chinese and English, and can be accessed on the websites of the Company and the Hong Kong Exchanges and Clearing Limited. In case of any conflict or inconsistency between the Chinese and English versions, the English version shall prevail.

We appreciate your valuable comments and suggestions on this report and our sustainability performance. Please send your comments to us [e-mail].

REpoRtinG pRinCipLES

The four principles below have been observed in this report:

Materiality	We identify the environmental, social, and governance-related topics, that are most
material to us and our stakeholders, through a materiality assessment, which is reliably
reflected in this SR reliably.
Quantitative	We commit to quantifying the data accurately with clarification as far as practicable.
Balance	We present the positive and negative aspects of our business in a transparent manner.
Consistency	We adhere to the same reporting approach as the previous year to ensure clarity and
comparability for our readers.

REpoRtinG SCopE, BoundARy And FREQuEnCy

This report covers our sustainability performances of our operations with controlling interests, including our Hong Kong headquarters, Mainland China offices, and Ireland office during the period from 1 January 2021 to 31 December 2021 (the "Reporting period")1. For easy comparison of the Group's annual performance, the structure of this report is aligned with the previous one as closely as possible. This year's reporting scope is no different from last year's.

• 1 Sub-contractors and outsourced services are excluded.

• 2 Please refer to the "Sustainability" chapter of this Report for more information.

China Aircraft Leasing Group Holdings Limited

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2021

ABOUT THIS REPORT

REFEREnCEd GuidELinES

This report is prepared in accordance with the Environmental, Social and Governance Reporting Guide (the "ESG Reporting Guide") set out in the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

Reference is made to the guidelines2 published by the Hong Kong Environmental Protection Department, the Ministry of Ecology and Environment of the People's Republic of China, and International Civil Aviation Organization ("iCAo") in our greenhouse gas ("GHG") emissions analysis.

BoARd ovERSiGHt oF ESG And CLiMAtE MAttERS

The Board is responsible for overseeing the Sustainability Steering Committee's ("SSC") tasks and reporting, including the review and approval of this ESG report and relevant material ESG issues, with an aim to fully incorporate ESG considerations when determining the Company's business direction and strategy.

Under the authority of the Board, the SSC is responsible for formulating the Company's ESG and climate change related policies, strategies and objectives; supervising the Company's performance and effectiveness in implementing sustainability related measures; identifying and evaluating material ESG topics and their order of priority that are relevant to our operations and stakeholders; and reporting to the Board on relevant matters. The SSC is also tasked with reviewing this ESG report and provide recommendations and suggestions to the Board.

MESSAGE FROM CEO

The year 2021 marked CALC's 15th anniversary, on behalf of our Board of Directors, I would like to thank all of our partners and stakeholders. Your support and care have been lightening up our journey and contributing to our foundation.

Since its establishment, CALC has gradually evolved into a prominent player in China's aviation financing sector as well as a world-leading one-stop aircraft full value chain solutions provider. According to ICF, as at 31 December 2021, the combined value of our owned fleet and order book assets totalled US$15.6 billion, ranking eighth among global aircraft lessors. Our aircraft order book as at 30 June 2021 ranked third among global aircraft lessors (according to Airfinance Journal).

GREEn And SuStAinABLE BuSinESS ModEL RECoGniSEd By tHE MARkEt

ESG has always been a top priority in CALC's agenda. Bringing to life our commitment to sustainability, CALC is a forerunner in building our infrastructure along the industry value chain in the area of circular economy, aiming at developing a business model that covers the aircraft full lifecycle, and establishing a firm footing for sustainable operations.

We have been working closely with aircraft manufacturers to include modern fuel-efficient aircraft in our order book. As at the end of 2021, our order book comprised 148 Airbus A320neo series aircraft which met airline clients' needs for green fleets, facilitating low-energy-consumption air travel. In parallel, we have a comprehensive blueprint in place for the recycling and remanufacturing of decommissioned aircraft and have been enhancing our capabilities persistently through our two recycling facilities at Harbin in China and Memphis in the USA. Our aftermarket business segment was granted Part 145 approval certification by Civil Aviation Administration of China ("CAAC") for regular inspection and maintenance of A320 series aircraft, making us fully qualified for provision of one-stop aircraft maintenance, disassembly and aircraft component distribution services across China, Europe and the USA. These qualified service offerings significantly increase the utility and realised values of mid- to end-of-life aircraft while promoting sustainable development of the aviation industry.

Leveraging our aircraft full value chain service capability and expertise, we continued to provide tailor-made fleet upgrade solutions for our airline clients last year, including successful completion of purchase and leaseback transactions for 17 aircraft, allowing the carriers to decommission old aircraft while securing sourcing of new aircraft to meet their capacity needs. To date, our aftermarket platform has cumulatively disassembled more than 380 aircraft and processed about 80 engines in total. The contribution of our one-stop fleet upgrade solutions in reducing airlines energy consumption and carbon emissions has been recognised with the "Social Innovation Contribution Award" in 2021 Yicai Corporate Social Responsibility Ranking in China.