ZTO Express Cayman : Supplier Guiding Principles

Supplier Guiding Principles

INTRODUCTION

ZTO Express ("we" or the "Company") understands that stable and sustainable success depends greatly on business partners. We communicate our expectations for business partners via this Supplier Guiding Principles and expect them to fulfill these commitments in their business practices. It offers an opportunity to us and our business partners to participate in an effort to improve the society and the environment, which will ensure sustainability and high-quality growth of the business.

Laws

Business partners shall ensure that their operations, products and services comply with applicable laws and regulations.

People

We place great importance on treating our employees with fairness and respect to human rights

Child Labor

Business partners shall comply with international labor law and regulations on the minimum employment age and shall not allow young workers to perform work tasks that may pose risks to their health, development or compulsory education.

Forced Labor

Business partners shall not endorse or engage in forced labor of any form, and shall not collect any money or personal documents from employees unless otherwise stipulated by law.

Non-discrimination and Non-harassment

Business partners shall respect the differences among employees and equally treat all employees without unfairly benefiting or depriving employees based on their race, nationality, skin color, ancestry, religion, social status, gender, age, disability, political beliefs and marital status. Furthermore, business partners shall guard against any form of harassment in the workplace, in the course of work, and outside the workplace, and

take appropriate measures if it occurs.

Compensation

Business partners shall comply with labor law on wages, compensation, overtime and various forms of benefits, and shall not deduct wages under any circumstances unless otherwise exempted by law.

Working Hours

Business partners shall set the normal working hours which will not exceed that stipulated by law, and shall keep the overtime hours of employees within the limit stipulated by law.

Occupational Health and Safety

Business partners shall ensure that the work environment, machines, equipment and operations are safe and hygienic. This includes setting measures for safe operating procedures, prevention measures against occupational accidents and diseases, and any other relevant technical measures, which are appropriate for the nature of work in order to reduce risks which can be posed on employees and which can affect the production.

Freedom of Association and Collective Agreements

Business partners shall comply with the laws and regulations of the place of operation regarding the protection of employees' freedom of association and collective agreements, respect employees' rights to join or form trade unions and engage in collective bargaining, and make every effort to maintain a constructive dialogue with them.

Environment

We attach great importance to environmental protection, resource conservation, safety and health, low carbon emissions, recycling and recovery promotion.

Quality and Safety

Business partners shall create and provide environmentally friendly products of high quality and safety through appropriate control and management, to ensure that the products and services provided meet our requirements and the terms agreed upon by business partners.

Ecology

If requested by the Company or interested parties, business partners shall provide relevant information documents proving that the source of the products and services is not an ecological reserve or a world heritage area, or that the source of the products and services will not cause significant damage to the environment.

Environmental Management

Business partners shall comply with both national and local environmental rules and regulations, and will ensure environmentally-friendly operation by: 1) Ensuring efficient resources management which includes reducing greenhouse gas emissions, reducing energy and water consumption, reducing environmental pollution, and ensuring compliance with wastewater standard. 2) Taking part in conservation of natural resources and biodiversity to ensure ecological balance.

Water Resource Management

Business partners shall conduct water resource risk and impact assessment and shall have water resource management plans in place.

Efficiency and Innovation

Business partners shall collaborate in the operation, and the knowledge and experience exchange in order to continually improve the operating processes, which, in turns, brings about increasing efficiency and innovation in the business.

Governance

We adhere to good corporate governance and risk management and comply with rules and regulations related to efficient, transparent, systematic and verifiable organizational management.

Risk Management

Business partners shall closely monitor economic, social, environmental and other situations and risk factors, and assess impact and set approaches to managing such risks for short- and long-term business operations.

Disclosure of Information and Transparency

Business partners shall report financial performance and status in a complete, transparent and verifiable manner. Information included in financial reports shall be accurate and in accordance with generally-accepted accounting standards.

Fair Business Operation

Business partners shall operate with adherence to rules and ethics and shall not engage in business conduct that may create an unfair competitive advantage. Unfair competition, fraud, discrimination, dishonesty, illegal or unethical business practices are prohibited.

Anti-Corruption

Business partners shall formulate risk assessment and management policies identifying high-risk cases. Business partners shall also create an efficient reporting mechanism and accounting system, review and follow up. It is also expected that business partners shall manage communication and provide training to raise awareness of possible corruptions and anti-corruption for employees.

1. Do not bribe procurement or receiving personnel, including but not limited to cash, gift certificates, gifts, travel, and other cash or non-cash methods.
2. Keep business secrets confidential and do not disclose the Company's purchasing quantities, prices, and other business secrets to other companies or individuals without permission.
3. Violation of the above regulations may result in the cancellation of the supplier's qualification, and the Company will not purchase their products and services for three years.

Data Privacy, Protection and Security

Business partners shall respect the rights and information of customers and partners by refraining from using or disclosing information of customers and partners without permission unless otherwise stipulated by law.

Whistleblowing

Business partners may raise questions if they become aware of any suspected or actual misconduct regarding the Company. Suppliers may contact us through the integrity supervision complaints and whistleblowing channels:

1. Tel: [phone] (same number for WeChat)
2. WeChat: lzjc_zto
3. E-mail:[e-mail]
4. Mailing Address: Network and Integrity Supervision Office of ZTO, No. 1685 Huazhi Road, Hua Xin Town, Qingpu District, Shanghai (recipient)
5. Online Whistleblowing Channel: ZTO BaoHe (中通寶盒) - Integrity Supervision - Integrity Supervision Whistleblowing

Whistleblower Protection

We attach importance to the protection of whistleblowers, safeguard the privacy of whistleblowers through the development of corresponding protection systems, and prevent any retaliation against whistleblowers, in order to provide strong guarantee for the creation of a clean and honest working environment. In addition to the real-name reporting through the BaoHe online platform, other channels accept anonymous reporting. In addition, even if a report is made through the BaoHe application, the whistleblower's information is strictly confidential and can only be viewed by designated personnel, and colleagues in the relevant IT departments have signed confidentiality agreements.

We expect our business partners to realize the benefits and significance of the Supplier Guiding Principles which will lead to cooperation, and to fulfill their responsibilities to communicate the requirements of the Supplier Guiding Principles to their employees and suppliers.