In 2024, iSoftStone Information Technology (Group) Co., Ltd. (referred to as "iSoftStone", 301236.SZ) has seen a significant improvement in its ESG (Environmental, Social, and Governance) ratings across various major domestic and international rating agencies. In Wind 2024 ESG rating, iSoftStone has once again earned an AA rating, maintaining its top position in the information technology service industry for the second consecutive year. This recognition highlights iSoftStone's leadership and excellence in environmental protection, social responsibility, and corporate governance.

iSoftStone 2024 Annual ESG Rating Badge

As of July 31, iSoftStone has achieved A-level or higher ratings from seven major domestic rating agencies, including Wind, CNI Index, CSI, Sino-Securities Index, SynTao Green Finance, IIGF, and CCXGF. Among these, three agencies have awarded iSoftStone an AA rating. Additionally, after being included in the MSCI China Index for the first time in 2023, iSoftStone's ESG rating in MSCI's 2024 evaluation has been upgraded to BB, reflecting a steady upward trend.

These achievements underscore the success of iSoftStone's ESG strategy since its implementation. They also demonstrate the company's strong leadership and growing influence in ESG management and practices, with increasing recognition of its commitment to sustainability.

Wind's latest ratings reveal that only two companies in the information technology service industry have achieved an AA rating, representing just 1.1% of the sector. This distinction indicates a company’s exceptional management, minimal ESG risks, and strong capacity for sustainable development.

Wind's ESG rating methodology is built around the core principles of ESG and is designed to be both internationally aligned and locally applicable. It takes into account the unique characteristics of Chinese companies and the current state of the capital market, employing a scientific and rigorous approach to assess significant ESG risks and a company's long-term sustainability. This methodology evaluates a company's ESG commitment and performance, helping investors identify critical risks and opportunities. The Wind ESG database includes all A-share and Hong Kong-listed companies, as well as over 10,000 major Chinese bond issuers.

MSCI is one of the most authoritative index providers and ESG rating agencies globally. Each year, MSCI evaluates publicly listed companies that attract significant investor attention in the global capital market. The agency provides objective ratings based on publicly available information, focusing on key environmental, social, and governance issues that impact industries. These ratings are crucial for investment decisions made by major investment institutions worldwide.

MSCI’s research shows that companies with higher ESG ratings typically benefit from lower financing costs in both stock and bond markets. This trend holds true even when considering various factors such as market conditions, industry specifics, and credit quality.

As a leading innovator in digital technology products and services in China, iSoftStone has leveraged its unique industry characteristics to develop a distinctive sustainable development management system. The company has implemented numerous ESG initiatives, earning it the highest comprehensive ESG score and securing the top spot in the A-share information technology service industry for two consecutive years. The company has been honored with several prestigious awards, including the "2023 ESG Best Practice Cases of Listed Companies" from the China Association for Public Companies, the "2023 Wind's ESG Best Practices for Listed Companies in China", and the "2024 CSO Award from Global Sustainability Forum". It also won the "First Greenlight ESG Model Innovation Contribution Award" from China Energy News and received an AAA rating for social responsibility governance in the software and information service industry in 2023. Additionally, iSoftStone’s information disclosure earned the highest A-level evaluation from the Shenzhen Stock Exchange. The company has been successfully included in several key indices, such as the "CNI Social Responsibility Index", "SZSRIP", "CSI 500/800 ESG Index", "CSI 500/800 ESG Leaders Index", and the "CSI 500/800 ESG Value Index". These recognitions highlight iSoftStone’s leadership and set a benchmark within the industry.