ZTO Express Cayman : 2023Q2 ESG Quarterly Updates

ESG Quarterly

Updates

Q2 of Fiscal Year 2023

Environment

2022 ESG Report Release

In April, the Company released its 2022 ESG Report, which is the 6th ESG report released by ZTO Express.

ZTO has remained true to the founding aspiration of "benefiting ourselves, benefiting others and benefiting the society", and committed to the mission of "bringing happiness to more people through our services".

The report centered on corporate governance, service to rural areas, green packaging, care for employees, welfare and charity, etc., systematically and

comprehensively introducing the important initiatives and achievements of social responsibilities in 2022.

Greenhouse gas emission intensity and energy consumption intensity have continued to decrease in recent years:

	Reduction in greenhouse gas					Reduction in energy
		emission intensity						consumption intensity
		(kg CO2/ RMB10,000)					(ton of standard coal equivalent/RMB10,000)
547	531			-15%			0.224	0.215	-16%
							449
														0.181

2020 2021 20222020 2021 2022

YOY Growth

2022

• Recyclable transfer bags used on cumulative terms: 32.25 million, increased by 74%
• Proportion of "slim tape" purchased reached 100%
• Utilization rate of e-waybills reached 100%
• "Recycling Program"- a total of 25,000+ green recycling devices have been put into use, increased by 1,000+ over last year

Notes: 1. Changes in the diesel statistics methodology in 2022 from previous years, and using this methodology to retrace diesel consumption in 2021 and 2020, recalculate the combined energy intensity and greenhouse gas emission intensity	2
2. Please see the 2022 ESG report for more details: https://zto.investorroom.com/ESG

Society

Integration of E-commerce in

Industrial Parks

In early April, the ZTO Express Guibei Intelligent Express E-commerce Industrial Park in Liuzhou, Guangxi Province with a total area of nearly 100,000 m2 opened for trial operation, further promoting the centralizing development of local E-commerce industry. With smart warehousing technologies, the order pick-up efficiency increased by 30%. Local specialties projects, represented by Luosifen benefit from improved speed and efficiency. In 1H2023, more than 20 million Luosifen packages were sent by ZTO.

Serving Rural Revitalization with Convenience and Prosperous

ZTO is actively promoting "express delivery into villages" project, which help address delivery problems as well as generate income for rural residents. In Jianyang, Sichuan Province, the high-qualitylast-mile service has increased parcel volume by 30%+, while also boosting foot traffic in local supermarkets. The express delivery business brought an additional revenue of ~RMB2,000 per month to supermarket operators during the peak season. As of May, there were 60+ ZTO village-level service points in Jianyang, covering nearly 180 villages.

Boosting Industrial Prosperity with

Expedited Delivery

During the "618" period, approximately 20 tons of cherries were sent out from the orchard in Ximatuan Village, Fushan District, Shandong Province. ZTO transported the cherries for the orchard with standard express delivery services, greatly improving the efficiency and reducing the damage rate by 15%-20%. The cherries sent from Yantai can be delivered generally within 24 hours in Shandong Province and 48 hours in other regions.

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Governance

ZTO Cold Chain: Network		ZTO Pharmaceutical Logistics:
Construction	Collaboration with Yaodouwang.com

ZTO Cloud Warehouse:

Network Security Upgrade

On May 12, the ZTO Cold Chain Wuxi sorting hub came into operation, with a 500-square-meter freezer and a 50-square-meter refrigerated warehouse. ZTO Cold Chain has established 40 sorting hubs nationwide, increased by 7 new centers compared to the same period last year. The number of routes has reached 1,400 with continuous route optimization, enabling the network construction to achieve preliminary results.

ZTO and Yaodouwang.com have jointly established Chongqing ZTO Pharmaceutical Supply Chain Co., Ltd. The company offers professional supply chain solutions and related services to the pharmaceutical industry, including warehousing, transportation, delivery intelligent systems for pharmaceutical manufacturers and distributors. This initiative aims to create a professional, efficient and intelligent supply chain in the pharmaceutical industry.

In June, ZTO Cloud Warehouse partnered with external service providers improve hybrid cloud network security. By leveraging cutting-edge information technology and data analytics methods, ZTO Cloud Warehouse has enhanced the intelligence and automation level of its security system, strengthened its ability to prevent and detect security threats, thus providing safer, more reliable, and seamless technological support for the Company's digital transformation.

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Governance

Announcing Change to Board Composition

On May 18, the Board of Directors of the Company has appointed Mr. Xudong Chen as a director of the Company, effective June 15, 2023. Mr. Zheng Liu has tendered his resignation as a director of the Company, effective June 15, 2023.

Convening the Party Congress of the Company

On April 20, ZTO held its Party Congress at the headquarters, with 100 representatives from all over the country attending the meeting. New Party committee and discipline inspection commission leadership of ZTO were elected. 9 people were elected as members of the Party committee and 5 were elected as members of the discipline inspection commission.

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