The list of the top 50 charitable donations of listed companies in 2022 was announced! The total donation reached 15.421 billion yuan, led by Tencent, PetroChina and China Shenhua ｜ Focus on the 2023

This newspaper (chinatimes.net.cn) reporter Nan Zhou Wenmei reports from Beijing.

On December 26th, 2023, the 2023 (3rd) China Public Welfare Forum hosted by China Times was held in Beijing. Huaxia Times and Yishan Data jointly published the Annual Report on Charity of China’s Public Welfare Listed Companies (2022) (hereinafter referred to as the Report), and at the same time announced the "Top 50 List of Charity Donations of Listed Companies in 2022", which witnessed the extraordinary year of 2022 with data and recorded the outstanding contributions made by listed companies in actively fulfilling their social responsibilities and participating in charity.

In the list, Tencent Holdings Limited, China Oil and Gas Co., Ltd., China Shenhua Energy Co., Ltd., Fuyao Glass Industry Group Co., Ltd. and Alibaba Group Holdings Co., Ltd. ranked in the top five with charitable donations of 5.124 billion yuan, 628 million yuan, 541 million yuan, 531 million yuan and 511 million yuan respectively. These enterprises have become enterprise models in the field of public finance because of their comprehensive characteristics such as influence, innovation, development, credibility and corporate social responsibility for many years.

The data in the Report is mainly based on the amount of corporate donations disclosed in the annual report, corporate social responsibility report and corporate sustainable development report of listed companies in China in 2022, the total assets and annual expenses disclosed in the annual work report of enterprise foundation, the donations of large donors disclosed in the annual work report or audit report of fundraising social organizations, and the donations of donated enterprises disclosed in the donor list under the column of donation information disclosure of fundraising social organizations in official website.

50 listed companies donated 15.421 billion yuan, up 19% from the previous year.

According to the Report, in 2022, the total annual donations of 50 listed companies reached 15.421 billion yuan, up 19% from 12.984 billion yuan in 2021. At the same time, the threshold for the top 50 finalists continued to increase, reaching 93.36 million yuan, an increase of 3.42 million yuan compared with last year. According to the Statistical Bulletin on the Development of Civil Affairs in 2022 issued by the Ministry of Civil Affairs, the donation income of social organizations nationwide in 2022 was 108.53 billion yuan. The donations of 50 listed companies accounted for 14.21% of the total national donations in 2022, an increase of 3.32 percentage points compared with the previous year. China enterprises are gradually recovering from the influence of COVID-19.

Among the 50 enterprises on the list, there are 28 private enterprises, accounting for 56%, and 22 state-owned enterprises, accounting for 44%. From the location of the headquarters of the listed enterprises, they are mainly distributed in economically developed areas such as the east and coastal areas. There are more enterprises in Beijing, Guangdong and Fujian provinces, with a total of 30 enterprises, accounting for 60%. The number of listed enterprises in Shanghai has decreased significantly.

As far as the industry donations of the 50 listed companies are concerned, although the number of enterprises in the information transmission, software and technical services industries represented by Tencent and Ali companies ranks fourth (6, accounting for 12%), the total donations (6.29 billion yuan) and the average donations in the industry (1.048 billion yuan) are ahead of other industries. Among them, in 2022, Tencent donated 5.124 billion yuan, reaching a record high. Manufacturing enterprises have the largest number on the list (7, accounting for 13.26%), but the average donation is not high (230 million yuan), and the total donation of the industry is 2.988 billion yuan, accounting for 19.8% of the total donation of the top 50. There are 7 enterprises in the mining industry this year, and the total donation (2.035 billion yuan, accounting for 13.45%) ranks third. The number of listed enterprises in the financial industry is 8, and the total donation amount (139 million yuan) ranks fourth, and the industry average donation amount (139 million yuan) is slightly lower than the overall level.

Distribution of industry donations of listed enterprises

Cinda Bio’s annual donation still ranks first in the proportion of total revenue.

According to the financial information disclosed by listed companies, we can observe the relationship between corporate income and donation amount. By calculating the proportion of donation amount in total operating income, we know that listed companies donate about 0.07% of total operating income on average. Among them, there are 23 enterprises whose business income is less than 500 billion yuan, and the ratio of donation amount to business income is greater than the average of 0.07%, accounting for 46% of all enterprises. The number of enterprises with operating income below 500 billion yuan and donations accounting for less than 0.07% is 11, accounting for 22%.

Among them, Tencent Holdings Co., Ltd. performed well, with an operating income of 554.5 billion yuan and a donation amount of 5.124 billion yuan, accounting for 0.92%. Although the donation amount of Cinda Bio-Pharmaceutical (247 million yuan) is much lower than that of Tencent Holdings, its donation proportion is as high as 5.43%, and the ratio ranks first as in the previous year (the ratio of last year was 4.79%).

33 enterprise foundations were established by 30 enterprises (participating)

The establishment of public welfare foundation is a powerful guarantee for enterprises to better plan public welfare investment, enhance the sustainability of public welfare, the transparency and credibility of the use of public welfare projects and funds, promote the development of public welfare industries, and promote the professionalism and long-term effectiveness of solving social problems, so as to make them more responsible in the third distribution and truly help "common prosperity." From the actual situation, enterprise foundation is also conducive to helping enterprises establish a good corporate image and public relations, and is more conducive to gaining the recognition of stakeholders.

In 2022, of the 50 enterprises on the list, 30 established enterprise foundations (excluding enterprise foundation affiliated group enterprises), accounting for 60%; A total of 33 foundations were established or participated in, and the public welfare expenditure of enterprise foundations reached 6.089 billion yuan, accounting for 39.5% of the total donations. Among them, information transmission, software and technology service enterprises have the highest proportion of establishing foundations, and 5 of the 6 companies have established foundations, accounting for 83%; Followed by the real estate industry, 75% of enterprises set up foundations.

According to the evaluation grades of enterprise foundations, in 2022, there were 9 foundations rated 5A, 16 foundations rated 4A and 4 foundations rated 3A, and 4 foundations did not participate in or disclose the evaluation grades. Compared with last year’s rating, the number of 5A and 4A foundations increased, while the number of 3A and unrated foundations decreased. From the level of foundation registration, among the 33 foundations, the Ministry of Civil Affairs registered 8 foundations; Provinces/municipalities/autonomous regions have the largest number of registered foundations, totaling 21; There are 4 municipal registration foundations.

From the time of establishment, most of the 33 foundations on the list were established between 2010 and 2019, with a total of 25, and five were established after 2020. Among them, Guizhou Moutai Public Welfare Foundation established by Guizhou Moutai Co., Ltd. was just established in January 2023.

Education and emergency rescue are the focus of donations, with a total investment of 2.6 billion yuan.

Among the above-mentioned 33 enterprise foundations, only one newly established enterprise foundation in 2023 did not disclose the 2022 annual report. Through the statistical analysis of the collected annual report project information of enterprise foundations, it is concluded that education and emergency rescue are the key themes of charitable donations in 2022, with a total investment of about 2.6 billion yuan.

Distribution of charitable key areas of enterprise foundations in 2022

Analysis of donation data in the field of education shows that among the 33 foundations, Fuyao Glass, Baofeng Energy, Country Garden and Xiaomi all invested more than 100 million yuan in the field of education, while Tencent and Xiaomi invested nearly 100 million yuan. According to incomplete statistics, among the 50 enterprises on the list, 24 enterprise foundations have disclosed specific amounts of project expenditures in the field of education, with a total amount of about 1.493 billion yuan. Further analysis shows that 78% of the funds in the field of education are used for universities, and kindergartens account for only 4%; About 73% are used for infrastructure construction or material supply, and 7% are used for teacher training or reward.

2022 is the last year to fight the COVID-19 epidemic. According to incomplete statistics, about 88% of the funds are invested in fighting the epidemic, and natural disaster rescue and disaster reconstruction account for about 12%, mainly including natural disasters such as reconstruction after floods in Shanxi, Henan, Sichuan earthquake and mountain fires in Chongqing. In addition, natural disasters and climate change are environmental problems and are closely related to the development of enterprises. According to incomplete statistics, among the 50 companies on the list, 25 companies are concerned about climate change, of which Tencent has invested more than 50 million yuan in this project.

Distribution of main directions of emergency rescue fields of listed companies in 2022

Looking at the expenditure of various industries’ activities, the field where information transmission, software and technical services spend the most is the development of public welfare undertakings, accounting for more than 42% of the project expenditure of this industry; Traditional manufacturing industry pays more attention to the field of education, and the expenditure in this field accounts for about 66% of the industry expenditure; The mining industry is mostly state-owned enterprises, with the largest investment in rural revitalization, accounting for 67% of the industry expenditure; Health and social services are most concerned about the fields related to their own industries, and spend 86% on medical and health education.

Tencent Charity Foundation has outstanding performance.

Of the 33 foundations, 32 disclosed the total donation income and expenses in 2022. By analyzing the relationship among the total assets, donation income and total expenses of foundations in 2022, it is found that the donation income of 33 foundations in 2022 is 9.595 billion yuan, accounting for 44.64% of the total assets. In 2022, the total cost was 6.317 billion yuan, accounting for 65.93% of the donation income.

From the scattered distribution map of total assets and total expenditures of foundations, it can be seen that most foundations have total assets of less than 1 billion yuan and donations of less than 300 million yuan. Only one foundation of Tencent is in the "strong" quadrant. Although the total assets of the National Energy Group Public Welfare Foundation of China Shenhua Energy Co., Ltd. are less than 1 billion yuan, the total expenditure is 540 million yuan; Country Garden Holdings Limited’s Guangdong Guoqiang Public Welfare Foundation has total assets of 2 billion yuan and total expenditure of about 300 million yuan; Fuyao Glass’s Heren Charity Foundation has a total expenditure of 530 million yuan. Further analysis shows that there are 9 foundations with total assets less than 600 million yuan, but the total expenditure exceeds 150 million yuan.

Relationship between total assets and total expenditure of foundation

In addition, the number of large payment objects of the foundation represents the number of its cooperative units, and rich partners are helpful to build a good charity ecology. Therefore, the number of large payment objects of 33 foundations is analyzed.

There are 33 foundations, and there are 382 independent institutions with large payment targets, with an average of 13 for each foundation. However, the gap between industries and different foundations is obvious. Information transmission, software and information technology services are the most, with 139 companies, among which Tencent Charity Foundation has the most outstanding performance, with 95 companies; There are 52 real estate industries and 50 health and social work industries. There is also a significant gap in the number of independent institutions with large payment targets from different enterprises in various industries.

ESG has great investment value, and climate, science and technology, old-age care and disabled people are concerned.

Of the 50 companies listed in 2022, 47 publicly released their ESG reports, accounting for 94%. In-depth study of ESG reports of various enterprises reveals five points:

First, ESG is not only an important starting point for enterprises to achieve sustainable and high-quality development, but also has great investment value. On the basis of carbon emission reduction, carbon neutrality and resource protection, paying attention to climate change is the key content of most enterprises. According to the Global Institutional Investor Survey released by morgan stanley capital international in 2021, 73% of the respondents indicated that they plan to increase ESG investment by the end of 2021. 79% of the respondents said that they sometimes or often use climate-related data to manage risks; Regarding the investment trend in the next 3-5 years, 62% of the respondents mentioned ESG.

Second, corporate philanthropy and corporate sustainable development are deeply integrated, and ESG is moving from meeting compliance requirements to strategic mining. Among the listed companies, 25 mentioned the risks of coping with climate change, and 6 mentioned the opportunities (China Shenhua, Changjiang Electric Power, Zijin Mining, Yili in Inner Mongolia, Kweichow Moutai and Sun Hung Kai Real Estate). While coping with the challenges, they saw that climate change would bring development opportunities in new energy, green products and services, market resilience, national policies, technological development, and reducing operating costs. These opportunities are deeply integrated with social value and enterprise value, which breeds the thickness of market opportunities.

Third, science and technology strongly contribute to enterprise development and charity. Of the 47 companies that disclosed ESG reports, 13 (28%) took scientific and technological innovation and scientific research as an important measure of ESG. Fourth, the direction of providing for the aged, being suitable for the aged and having silver hair is both a charity direction and an investment direction. Among the 50 enterprises on the list, 13 (28%) have charitable investment in providing for the elderly, which are concentrated in the financial, information transmission, software and information technology services, real estate and other industries.

Finally, it is worth mentioning that among the 47 companies that disclosed the ESG report, 12 companies (25.5%) mentioned charitable investment in disabled people and barrier-free areas. The main direction is to hire disabled employees and information accessibility.

Editor in Charge: Fang Fengjiao Editor in Chief: Wen Mei