About this Report

This is the 14th Annual Corporate Reliability Assurance Name Descriptions Social Responsibility report of China The Board of Directors … and all directors of the Company For convenience of expression, all references to Southern Airlines Company Limited. certify that this report contains no false records, misleading "China Southern Airlines", "the Company" or "we", Based on the principles of objectivity statements or major omissions, and accept liabilities for the herein refer to China Southern Airlines Company and transparency, the many positive truthfulness, accuracy and completeness of this report in Limited, or "China Southern Air Holding Company achievements of the Company in the total. Limited “ or “the Group”. The reference to "Xiamen fields of economy, environment and Air" refers to "Xiamen Airlines Company Limited". All social responsibility are presented in Reporting Period subsidiaries are in the form of "region + the name of detail. the branch " . The reporting period spans January 1 to December 31, 2020. In order to enhance the comparability of the report, it should be extended appropriately. This report is issued Access to the Report concurrently with the China Southern Airlines Annual This report is presented in both Chinese and English Report. The previous CSR annual report was issued in and published in both printed and electronic March 2020. formats. You may browse or download this report online on the official website of China Southern Scope Airlines at www.csair.com. The indicators disclosed in this report is mainly sourced from China Southern Airlines, and some indicators are Contact Information extended to China Southern Air Holding Company Limited. For any questions or suggestions, please contact: The data disclosure scope has been specified in detail in China Southern Airlines Company Limited. this report. Address: No.68 Qixin Road, Baiyun District, Guangzhou, China Source of Data Official Website: www.csair.com Financial data used in this report were extracted from Cover story audited annual reports of China Southern Airlines and Contact: Li Ling In the color design, harmonious and artistic other data were sourced from public data of government E-mail: [email protected] colorful gradient colors are employed as the background, symbolizing the rainbow after departments or official corporate documents and statistics. the rain, which expressing the corporate Unless otherwise stated, all financial data in this report are culture concept of "Sunshine China Southern expressed in Renminbi (RMB). Airlines". In the pattern design, the simple and rhythmic lines symbolize the trail left by the plane sailing Compilation Basis in the sky while the "peace dove" represents the world's yearning for peace and well- Guidelines Concerning State-Owned Enterprises’ Fulfilling being after the epidemic. "Human silhouette" Social Responsibilities published by the State-Owned Assets expresses China Southern Airlines' consistent Supervision and Administration Commission (SASAC). "Friendly and meticulous" service philosophy while "Canton Tower and Daxing Airport Environmental, Social and Governance Reporting Guide connected in series with engines" represents published by the Hong Kong Stock Exchange (HK-ESG). the dual hub of China Southern Airlines Guidelines on Preparation of Corporate Social Responsibility "Guangzhou-Beijing", in which "Aircraft and Engines" clarify the industry characteristics and Report Notice on Further Improving Disclosure of Poverty core elements of environmental protection. Alleviation Work of Listed Companies (published by the "Mobile phone" expresses intelligent services while the "love in the chest" employs China Shanghai Stock Exchange). Southern Airlines' confidence in serving the GRI Sustainability Reporting Guidelines (GRI Standards) society and deepening a well-off society in issued by Global Reporting Initiative (GRI), and an all-round way. The overall design shows the multi-faceted actions and sunny image of GB/T 36001-2015: Guideline on the Compilation of Corporate China Southern Airlines in fulfilling its social Social Responsibility Report. responsibilities under the background of a special historical period. TABLE OF CONTENTS

80 Side by Side, 38 Sharing a Safe and Happy, Harmonious Journey Guarding the Journey at Ease 82 os o

40 t t 87 otbut to oous ot 42 Ato t 58 2 Letter from the 46 ss t Affinity and Refinement, Chairman 47 uto t t Creating a Warm 4 About Us Journey

10 Social Responsibility Management 60 ss s 70 14 Value Creation in 48 68 t s Efficient and First-class, Appendix the 13th Five-Year Plan Green Environmental Creating a Value Journey 69 usto tos to Report Protection, 16 Focus on 2020 90 oo to t utu Starting a Low 74 o t t tos 92 st o os Carbon Journey utos 75 oto o ot 94 o t 77 u t 50 ot t 98 o tos 79 tt s ooto 52 sos to t 102 t Auttto 54 to 104 b 57 Aot ot otto 105 st o os 2 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited Letter from the Chairman 3

Resolutely adhering to the bottom line of flight safety and promoting established to promote the large-scale service of China’s largest airline. the construction of seven safety systems, China Southern Airlines China Southern’s detailed process tracking of luggage obtained IATA full coordinated and carried out activities such as the three-year special network compliance certification. The three major airlines of China had the rectification of safety production, the "three awes" publicity and education lowest complaint rate of CAAC to again earn the accolades of the national and safety rectification. There were no Company liabilities throughout the "benchmarking enterprise of customer satisfaction". year and China Southern Airlines recorded 21 consecutive years of flight safety and 26 years of air defense safety. China Southern Airlines’ flight Helping to fight poverty and its varied poverty alleviation modes safety levels maintained the Company’s leading position in China's civil of "aviation leading, industry driving, education consolidating, care aviation industry. and assistance, sunshine poverty alleviation", China Southern Airlines’ employees filled varied roles to carry out poverty alleviation work in 21 China Southern Airlines closely followed all COVID-19 pandemic villages, two counties, 12 provinces and autonomous regions, such as prevention and control measures. A leading group for pandemic Xinjiang and Guangdong. In total, China Southern Airlines dispatched 83 prevention and control was set up to immediately launch the Company’s poverty alleviation staff to temporary posts and villages with the mission first level response to major public health emergencies and 44 documents to help all areas out of poverty. Since 2018, China Southern Airlines has including the sixth edition of prevention and control guidelines and the invested 84.02 million yuan in designated poverty alleviation counties, second edition of overseas pandemic prevention and control guidelines provided 4,498 jobs, built two Sky Pearl Club primary schools and one were printed and distributed. Given this global crisis, passenger control kindergarten to earn the highest "good" grade of central unit's designated was well managed; flights to/from key international countries and regions poverty alleviation assessment during both 2018 and 2019. were severely reduced; flight capacity was limited by technical means and the on-board meal and service process - China Southern Airlines’ exclusive China Southern Airlines continues to promote green flight. Through “On Demand Dining” - was simplified. Our senior managers strengthen staff the optimization of aircraft structure; route planning; single engine taxiing protection, implementing fixed scheduling, centralized management and and precise cargo and passenger luggage stowage, energy conservation isolated high-risk flight crews when needed. efforts were enhanced and emission reductions continued to fall. The annual fuel consumption per ton kilometer decreased by 6.6% year on year. Regarding anti-pandemic transportation as the "top priority" task, Since October 2018, China Southern Airlines invested 516 million yuan a total of 19,000 flights were scheduled to transport more than 25,000 to promote energy utilization of fuel vehicles in the airport control area; medical personnel and 29,000 tons of anti-pandemic materials as well as vigorously promoted the replacement of APU with bridge power supplies taking back more than 24,000 Chinese citizens stranded abroad to our to save 116,000 tons of aviation jet fuel while being an innovator of Motherland. For the first time, China Southern Airlines introduced a policy information technology. Large scale dynamic map route planning has been of free transportation for all pandemic prevention materials, with a total of included in the national key research and development projects and has 1,017 tons of freely moved within China and the international community. been rated as "advanced unit of blue sky defense work" by the CAAC “Unit for Blue Sky Defense" of the Civil Aviation Administration. As we look forward to the full return of work and airline production, China Southern Airlines has responsibly taken its key role of civil aviation 2021 is the first year of the "14th Five-Year Plan", the beginning of a new during this special period, sparing no effort to resume domestic flights, development pattern, and the 100th Anniversary of the founding of the vibrantly organized the resumption of charter flights and introduced Communist Party of China. China Southern Airlines will always maintain its two new cargo aircraft. China Southern Air Cargo led the way with the unremitting goals of flight safety to work hard, forge ahead, resolutely win resumption of flight operation of our 747 cargo aircraft which led to the seven tough battles, accelerate high-quality development and continue to restoration of cargo production and the stability of the aviation industrial advance toward the goal of building a world-class air transport company 2020 was an extraordinary year. Faced with the extreme challenges brought about by the COVID-19 pandemic, China chain supply chain. By the end of 2020, the flight execution rate has and celebrate the 100th Anniversary of the founding of the Communist Letter Southern Airlines, proudly standing tall as the largest airline in the People’s Republic of China, fully implemented the recovered from 10% of the lowest point to 92.78%, 5.65 percentage points Party of China with exceptional results! decisions of central and superior authorities, resolutely shouldering the responsibility of the central enterprises to higher than the industry standard; the daily utilization rate of cargo aircraft from the win three battles. First, strategic results have been achieved in the fight against the COVID-19 pandemic, achieving has reached the highest level of 16.8 hours and 8,431 passenger aircraft to zero infections on passenger planes on all international and domestic flights and zero infections to all employees cargo aircraft flights had been organized. Chairman and senior managers. Second, our airline’s active operational response achieved a vibrant phased victory. With the largest fleet in both China and greater Asia, and shouldering the worst impacts of COVID-19, our operational Our successful marketing efforts worked to create a strong service response achieved significant results and outperformed the general aviation trend. Third, substantial progress brand. Precise management control and lean flight operations gained an has been made in the battle for high-quality development. The special activities of benchmarking world-class annual flight punctuality rate in 2020 of 89.88%, 1.36 percentage points management, five major structural adjustments and optimizations and lean cost management have continued to higher than that of the entire global aviation industry. The China Southern’s Ma Xulun press forward and the "Double Hundred Action" mixed ownership reform model has been successfully implemented. dual brand management and service improvement committee(s) were Chairman of China Southern Airlines Co., Ltd. 4 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited About Us 5

2020 fleet A0 series 5 About Us structure A0 series 8 A0 series A20 series

Headquartered in Guangzhou, China Southern Airlines Co., Ltd. series series Overview was established in 1995, listed on the stock exchanges in Hong series series Kong and New York in 1997 and the Shanghai Stock Exchange in 15 325 series 2 2003. China Southern Airlines operates domestic, international 401 45 0 series 37 and regional regular and irregular air passenger, cargo, mail 9 and luggage transport services. It has the largest number of AR2 series 14 transport aircraft, the most developed route network and the 6 largest annual passenger volume of any airline in the People’s Republic of China. 16 In recent years, China Southern Airlines has made every effort to build the headquarters hub in Guangzhou at Baiyun International Airport and the main hub in Beijing at the new Caro aircraft Daxing International Airport. Both Beijing and Guangzhou work As of the end of 2020, 851 concurrently to form a dual hub pattern of "North-South echo and China Southern Airlines operated flying together". The Company continues to operate and expand assener Aircraft the route network, providing safe, reliable, convenient and 173 routes comfortable air transport products and services to meet people's needs for better travel and promote the construction of a world-

class air transportation company. 1457 new domestic routes

and 8 new international and regional routes throughout the year 867

Total

In the past year, the main honors that China Southern Airlines Group has earned include:

Won the "National Won the "Best Airline" Won the "China Air Transport International Air Transport "Market Quality The "Outstanding Responsible The "Weibo 2020 Most The Boeing 777 fleet of the Advanced Unit of and "Innovative Association Civil Aviation Association (IATA) "2019 Best Credit Rating AAA" and Enterprise Award of the Influential Aviation Flying Corps was awarded the Transportation System Service Award" in the Science and Technology Practice Airline for Off- "Customer Satisfaction 2019 China Corporate Social Organization" on Sina "National Advanced to Fight the the 6th CAPSE Civil Aviation Award (third place)" by Civil site Check-in" and "Open Benchmark Enterprise" Responsibility Ranking" at the Weibo Group in Fighting COVID-19 Pandemic" by Passenger Service Evaluation Aviation Administration of China AIR Project Level 0 by China Quality Association China Corporate Social Responsibility the New Coronary the Ministry of Transport and China Air Transport Association Certification" Annual Conference Pneumonia Pandemic" 6 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited About Us 7

Party Building

To strengthen ideological and political China Southern Airlines deepened the education, China Southern Airlines hosted the central inspection and recti cation which Upholding party leadership and rst "Pioneer Cup" micro party class competi- allowed for special inspections of the strengthening party building are tion and the rst "Pioneer Cup" skill competition central inspection and recti cation; for Party branch secretaries. These events were supervise and inspecting 22 recti cation the foundation of state-owned held to build a team of Party organization leading units and consolidating the enterprises. China Southern Airlines secretaries with "three understandings, three eectiveness of the central inspection and abilities and three excellences". The Company recti cation activities. This allowed for adheres to the guidance of Xi placing the focus on air crews and carrying out more than 130 recti cation measures to be Jinping Thought on Socialism with special research on Ideological and political formulated, 125 of which have been work, holding ideological and political work recti ed, ve continuous recti cation Chinese Characteristics for a New meetings for air crews while issuing guidance measures have achieved initial results and Era, consistently promotes quality of and promoting the construction of 51 rules and regulations established in the Ideological and political work system recti cation process have been party building, leading high-quality with air crew characteristics. eectively implemented. development of party building and provides valued leadership in building a world-class air transport company.

These special teams also strengthen the China Southern Airlines works at the construction of all employee teams to crossroads of grassroots sales and develop an analytical plan and introduce marketing and distributes guidance and an employee exchange system. This allows opinions for employees at the very local for an internal inventory survey of the level to carry out the "double professional system, and form a "one report contentions" activities. Sta “go deep” to and ve checklists." Sta then work in help carry out special investigations on unison to build a new evaluation system, the integration of party building into the improve the daily employee evaluation and central work, formulate guidelines for the necessary follow-up with senior party building and actively explore management as well as large scale eective carriers for party building to operation that take the lead in realizing the integrate and serve the central work. tenure system and contractualization in the Double Hundred Enterprises. 8 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited About Us 9

Since its establishment, China Southern Airlines has strictly complied with Extended Reading Development Strategy Corporate the requirements of national laws and regulations and formulated corporate Please refer to the annual report of governance documents such as: China Southern Airlines for details of corporate governance structure and Articles of Association Governance governance mechanism. Rules of Procedure for the General Meeting of Shareholders th 2020 closed out the 13 Five Year Rules of Procedure for the Board of Directors, and the Rules of Procedure for Five Major Developments Plan and the beginning year of the Board of Supervisors th th the 14 Five Year Plan. The 14 All efforts further improve the governance structure and system construction, Five Year Plan period is a critical Safe High-quality Innovative Cooperative Shared comprehensively regulate corporate governance and assist in the long-term one for China Southern Airlines Development Development Development Development Development and steady development of the Company. to build itself into a world-class air transportation enterprise as China Southern Airlines continues to adhere to new development General Meeting of Shareholders concepts and serves the new Five Strategies development pattern. With the theme of promoting high-quality Supervisory Committee development, the Company Innovation- Lean and Brand th Ecosystem is working to compile the 14 Hub network driven control management strategy strategy Five Year Plan development strategy strategy strategy Standing Committee of plan, adhere to the five major the Board of Directors Board of Directors developments while implementing the five major strategies and promoting the six major actions that will culminate in the realization of the six major changes to speed up the construction of Special Grasping Deepening Improving Adjusting and Improving itself as a world-class air transport recti cation major key reform benchmarking optimizing Six Actions service Strategy and Audit and Risk Remuneration Nomination Aviation enterprise and strive to make of production strategic break- of rst-class ve major quality Investment Management and Appraisal Committee Safety greater contributions to the overall safety opportunities throughs management structures Committee Committee Committee Committee construction of a modern Socialist country.

Management From plan management to From speed to quality market operation

From comprehensive market From traditional business model expansion to key breakthroughs Six Changes to digital and ecosystem China Southern Airlines follows the regulatory requirements of listed Management companies to carry out information disclosure and ensure operational transparency. China Southern Airlines’ senior managers continuously Obtained From relatively single industry to From extensive management to of Investor strengthen the management of information disclosure, make full use of highly related diversi ed industry re ned management. Internet tools for investor communication and hold the annual performance A-level Relationship conferences via cloud video. In 2020, the Company hosted and participated in evaluation of information more than 60 meetings, communicated with nearly 700 investors and analysts; disclosure of Shanghai reviewed and released 188 A-share announcements (including corporate Stock Exchange for bonds) and 211 H-share announcements in Chinese and English, maintained "zero complaints" and "zero errors" and obtained A-level evaluation of consecutive years information disclosure of Shanghai Stock Exchange for seven consecutive 7 years. 10 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited Social Responsibility Management 11

The Company has implemented the requirements of the State-owned Assets Supervision and Administration Commission CSR of the State Council, the Hong Kong Stock Exchange and the Shanghai Stock Exchange for its Corporate Social Responsibility Social Responsibility Management efforts; formulate the "Social Responsibility Management Manual" and "Social Responsibility Management Manual Sub- Governance volumes"; establish a social responsibility governance structure and clarify the responsibilities of all parties. The "Measures for the Management of Social Responsibility Demonstration Bases" was also launched to further standardize the steady development of the Company’s Corporate Social Responsibility activities and enhance the Company’s CSR governance Background capabilities. of Sustainable Challenges and China Southern Airlines CSR Operation Structure Opportunities Advantages Development Social Responsibility Steering Committee

The COVID-19 pandemic had a huge China Southern Airlines’ extensive route network and CSR Working Group (Publicity Division) impact on the global aviation industry and capacity is in line with the national transportation the overall air passenger transport market strategy and efficient air services continues to be demand has dramatically slowed. the new development pattern of domestic and Functional Departments at Headquarters international air services. Member companiesMember Intensified competition among global The domestic China Southern Airlines market share Board Office Investment Division Strategic Planning & Personnel Division Organization and Division Human Resources Finance Department Evaluation Department Comprehensive Performance Division Safety Supervision Division Laws and Standards Corporation Division International Policy Research Office Audit Department Office Supervision and Discipline Inspection Publicity Division Group Work etc. Department, Others airlines, while facing challenges from other ranks first among all domestic airlines of China as the modes of transportation such as ever- Company rebounds from the COVIF-19 pandemic and improving high-speed rail networks. its leadership in realizing a full business recovery.

China Southern Airlines’ “Belt and Road Initiative” route Climate change and increased network is now complete, and has become dynamic environmental pollution have led to force in aviation connectivity between China and the increasing attention to the low-carbon many countries and regions along the “Belt and Road”. development of the aviation industry as China announced its goals to be carbon China Southern Airlines has fully transferred flight neutral. operations to Beijing Daxing International Airport …. moving into the Guangzhou-Beijing "dual hub" era. The Corporate Social The CSR Working Office, which The CSR Working Office, Continued “One Belt One Road” The Company continues to optimize its strategic Responsibility Steering is set up with the Company’s composed of leaders of the construction; coordinated development of investments to promote a number of structural Committee is chaired by the Publicity Department, is functional departments of the Beijing-Tianjin-Hebei and the Guangdong- reforms. chairman and general manager of responsible for implementing headquarters and subordinate Hong Kong-Macao Greater Bay Area, China Southern Airlines and the the resolutions of the units, is responsible for Hainan Free Trade Port and other important Concurrently, the Company adheres to innovation- Group Company’s in-charge leader Corporate Social Responsibility the management and developments. driven development, to improve the level of serves as the deputy director. It Steering Committee including information disclosure of the informatization, and accelerate the pace of digital and is the highest decision-making preparing the annual social corresponding CSR issues, intelligent transformation. body for CSR management, responsibility report, organizing formulating management China's deeper reforms to the responsible for decision-making, CSR projects as well as objectives and measures, international community bringing major Implement the national green development strategy leadership and promotion of coordinating the Company’s regularly monitoring the growth opportunities, and to promote green flight, and the Company’s Corporate Social social responsibility research, progress of varied CSR issues Responsibility work, approving training, communication and and participating in the Go all out to win the fight against poverty and annual CSR reports and others dissemination and other related preparation of Corporate The rapid growth of civil aviation complete the tasks of the designated poverty matters dealing with major issues efforts. Social Responsibility reports. transportation has been transformed into a alleviation. in Corporate Social Responsibility strong air transportation country. work. 12 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited Social Responsibility Management 13

In order to better understand the expectations and Safety Analysis of demands of stakeholders, China Southern Airlines Environment Communication with the Stakeholders continually strengthens its outreach communication and Service Material exchange among stakeholders and clarifying the key issues Staff in areas such as: Society and Economy, and Information Disclosure Aspects China Southern Airlines follows Stakeholders Expectations and Demands Communication Channels and Methods a diversified communication Aspects Identification Aspects Survey Aspects Selection Aspects Review mechanism that allows for active Protect the interests of shareholders controlling Board of Directors. communication with stakeholders the risk. General meeting of shareholders. On the basis of carding issues A survey was conducted Based on the attention The screening and Investor through multiple channels and to fully Return on investment. Supervisory Board Meetings. related to GRI, ESG, MSCI and by issuing the of stakeholders and analysis results are protect the rights of all stakeholders Important information disclosure. Periodic reports and announcements. other international standards questionnaire on material the importance to the primarily reviewed to participate in building a dynamic and guidelines on Corporate aspects of China Southern sustainable development through two important stakeholder relationship. Obey the law. Special report. Social Responsibility, this report Airlines during the year of China Southern channels … internal Pay taxes according to the law. Survey and visit. benchmarked the sustainable 2020. Government, Airlines, Corporate Social management and Government Implement the national strategy. Project cooperation. development goals of the United investors, customers, Responsibility is the focus external experts to Promote employment. Work meetings. Nations, the latest development employees, airline of attention and response confirm important CSR Serve people's livelihood. Statistical reports. trend and key aspects of the global managers, partners, in this report. aspects and disclose the aviation industry, combined with communities and other management methods Energy saving and emission reduction. Green flight. the important practice of Corporate stakeholders and senior and indicators of material Coping with climate changes. Ground environmental protection. Environment Social Responsibility of China managers were invited to aspects in a reasonable Protect ecology and reduce pollution. Application of noise reduction Material Aspects Southern Airlines have formed evaluate the importance manner in this report. Reducing noise reduction. measures. the Social Responsibility Aspects of all CSR aspects. 1 Ensuring safe flight operations Continuous safety and quality services. Library of China Southern Airlines. Safety management system. 2 Passenger health and safety Quick response to customer comments or Client Customer relationship management 3 Employee occupational health complaints. and online services. and safety 1 Protect customer privacy. 4 Responding to climate change 2 Safeguard the rights and interests of employees. 5 Waste disposal Staff representative conference. Strengthen staff training. Importance to stakeholders Importance 11 3 Diversified staff training. 6 Sustainable use of resources Staff Continuous improvement of employee Salary system reforms. 7 Reducing the rate of flight delays 8 10 compensation and benefits. 7 20 Integrated management of employees. 8 Protecting passenger privacy 16 An open and transparent human resource policy. 9 9 Convenient business processing 17 14 6 13 18 Honest business Transparent procurement training. Supplier 10 Creating a positive passenger air 5 12 development. Hosting technical exchange seminars. travel experience 11 Passenger satisfaction 4 Improve debt solvency. Strengthen compliance management. 15 Financial Institutions 19 12 Employee training and education Reduce business risks. Improve management levels.

13 Diversity and equal opportunities Helping targeted poverty alleviation. Carry out targeted poverty alleviation. Community 14 Employee compensation and Carry out voluntary services. Support charitable activities. benefits Importance to China Southern 15 Establish information channels to transmit the News releases. "One Belt One Road" Media responsibility fulfillment “voice” of China Southern Airlines. Press conferences. 16 Targeted poverty alleviation Supporting SDGs Fair and friendly cooperation. Strengthen cooperation. 17 Responding to the COVID-19 Peers Healthy and harmonious industry development. Exchange study and forum meetings. pandemic Safety Environment Service Employee Society Economy

18 Anti-corruption 19 Supplier performance 20 Regulatory compliance 14 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited Value Creation in the 13th Five-Year Plan 15

Total number of Total transportation turnover Freight and mail transportation Ten-thousand-hour rate of Normal flight rate CO2 emissions per ton-kilometer aircraft in operation (100-million-ton km) volume (10,000 tons) finance accident symptom (%) (Tons/10,000 tons kilometers) Value department

867 223.88 89.88 Creation 208.05 151 68.53 in the 667 146 9.52 9.29 th 0.034 End of 2015 End of 2020 End of 2015 End of 2020 End of 2015 End of 2020

13 End of 2015 End of 2020 End of 2015 End of 2020 End of 2015 End of 2020 Five-Year 0 Plan

Passenger transport Safe flight time Accumulated safe flight time Fuel consumption per ton-kilometer Complaint rate Number of employees From 2016 to 2020, the The 13th Five-Year Plan period is an (100-million-person times) (10,000 hours) (10,000 hours) (Tons/10,000 tons kilometers) (‰) (10,000) accumulated investment unusual Five-Years in the development in Poverty Alleviation history of China Southern Airlines. It is also been a challenging Five-Years. It is 1.1 220 2,508 also Five-Years of extensive Company 0.97 208 10.04 135.68 planning and positive results that have million yuan led to additional safety flight benefits 8.72 that fully promotes the full range of 1,529 China Southern Airlines’ service by 3.02 0.40 deepening reform and innovation as 2.95 0.1320 End of 2015 End of 2020 the Company strives for sustainable End of 2015 End of 2020 End of 2015 End of 2020 End of 2015 End of 2020 End of 2015 End of 2020 End of 2015 End of 2020 development and comprehensive economic, social and environmental values.

Note: flights reduced due to the epidemic 16 16 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited About Us 17 17

Practicing the mission and winning the fight against the COVID-19 pandemic Precise Strategy Against the Pandemic Case Boeing 777 Fleet: Elite Air Guard

In 2020, the sudden COVID-19 pneumonia pandemic cut a deep swath across the international In the face of novel coronavirus pneumonia, the Boeing 777 The leading group for pandemic prevention and control was immediately community and dramatically impacted the world economy and people's livelihoods. China Southern pilot went back wrote an invitation to join the vanguard of the established in early 2020 and the first-level response to this unprecedented public Airlines’ senior managers regard the prevention and control of the pandemic as its most urgent task as war against COVID-19. The 777 pilot gave up precious time health emergency was initiated … and successively issued the "China Southern they have meticulously studied and implemented the spirit of General Secretary Xi Jinping’s important with his family to successfully complete 36 important flights Airlines Group Party Group on the in-depth implementation of the important speech and instructions on pandemic prevention and control and gave full play to the advantages of and safely transported back more than 4,500 passengers, instructions of General Secretary Jinping". These and many more progressive aviation. including five time-sensitive flights to Wuhan for medical efforts strengthen the party's leadership to win the prevention and control of rescue of 1,294 medical personnel, and more than 100 tons the pandemic including “Implementation Opinions on Providing Strong Political 310,000 pieces of materials and set up an “air life” transportation channel Guarantees for the War” and “Measures for Further Strengthening the Key Period of The Company donated more than for pandemic prevention and control. In September 2020, Anti-Pandemic Report Card Prevention and Control of the Novel Coronavirus Infection and Pneumonia Pandemic”, 310,000 pieces of medical supplies the China Southern Airlines Boeing 777 cargo fleet earned were coordinated and promoted China Southern Airlines’s pandemic prevention to international aviation partners the honorary title of "Advanced Collective" at the National and control work and gathered together a strong effort to combat COVID-19. Focus on 2020 19,000 Commendation Conference for Fighting the New Coronary The Company operated 19,000 Pneumonia Pandemic. flights in the transportation Building the “Air Bridge" 0 of anti-pandemic personnel, No passengers on any domestic including 208 anti-pandemic and international flights of charter flights in Hubei million During the pandemic, China Southern Emergency medical charter China Southern Airlines is When taking Chinese Province 10 China Southern Airlines were fight against the COVID-19 pandemic Practicing the mission and winning The Company donated 10 Airlines arranged for substantial flights were arranged to committed to freely move citizens back home to China infected with COVID-19 during million yuan, 10,000 sets transshipments of medical staff transport medical support the donations of medical from numerous international the boarding process and no of protective clothing and and anti-pandemic materials that teams from all over the materials and creatively used destinations, China Southern Company employees were 30,000 masks to Hubei directly impacted the lives of tens of country. Starting on New Year's the advantages of the airline’s Airlines’ senior managers arranged for infected at work 4,000 Province thousands of people. China Southern Eve, medical personnel and medical international regional marketing varied charter flights to pick up more Airlines continually takes the initiative supplies were transported to support centers and business departments, than 24,000 stranded passengers China Southern Airlines to undertake major transportation Hubei Province, which was one of the seeking sources of medical materials from more than 10 countries, established 120 youth teams support tasks in the fight against first batch of medical support civil in short supply, open up green including the United States, United tons to fight the pandemic with 29,000 the pandemic. Concurrently, aviation charter flights. The green channels for procurement, customs Kingdom and Russia. nearly 4.000 Company staff The Company safely transport China Southern Airlines actively channel for the air transportation of clearance and logistics and ensure members joining the fight 25,000 medical personnel, 29,000 extends a helping hand to its varied aid materials was opened to provide that "life materials" were delivered against the pandemic tons of anti-pandemic materials of international partners to build an "air complimentary air transportation to Hubei as soon as possible to fight which 1,017 tons of anti-pandemic bridge" and jointly contribute to the and priority guarantee for donated against the pandemic. materials are transported free of fight against the pandemic. materials at home and worldwide and charge the clearance speed of anti-pandemic materials reached five times of that of standard flights. "It is you who have spared no effort to immediately deliver us safely to Wuhan and sent Guangdong's medical treatment force to the majority of Wuhan citizens. It is also your enthusiastic and meticulous service that brought us back to our warm home!"

- The first batch of Guangdong medical aid teams on the China Southern Airlines 777 cargo flight wrote a joint letter of thanks to the team 18 18 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited About Us 19 19

In the fight against the COVID-19 pandemic, China "China Southern Airlines did not give up on us! I am really Building a Firm Southern Airlines has always placed the safety and health touched! Thank you everyone for your care and concern! “Air Defense of passengers and employees of paramount importance. From taking our body temperature before boarding th The 6 Edition of the Prevention and Control Guidelines and the plane and waving goodbye when we departed the Line” Against nd the 2 Edition of the Guidelines for the Prevention and Control aircraft, I can still feel your warmth even if we can't see COVID-19 of Overseas Pandemics have been issued successively and "You have achieved ‘zero infection’ "Mask Flight" Carrying a Sincere Heart your faces. Thank you for letting us go home without Case the prevention and control of COVID-19 during the entire on all domestic flights! How much incident. Thousands of words cannot be combined into flight process has been carried out, and staff protection has effort was needed! Today I also one sentence that shares our love for China Southern personally experienced your On February 3, 2020, China Southern Airlines combined for double "zero" results of COVID-19 onboard Airlines … gratitude, gratitude or gratitude!" awareness of strict enforcement of flight CZ634 flew from Nairobi, the capital of every aircraft and "zero infection" of the virus in the airline’s prevention and control. Bravo and Kenya, to Guangzhou. Unlike standard flights, workplace. - Classmate Lin who took the flight home on China congratulations to China Southern the cargo warehouse and cabin of this aircraft Southern Airlines Airlines’ achievements!" were filled to the brim with medical supplies Focus on 2020 donated by ethnic Chinese living in Kenya. At the beginning of the COVID-19 outbreak, the - Zhong Nanshan, winner of

Case No one will be left behind - taking overseas the Medal of the Republic and situation in the Motherland deeply impacted students back home to China the hearts of overseas compatriots. Chinese Academician of the Chinese citizens and overseas Chinese living in Kenya Academy of Engineering collected more than 3,000 boxes of medical On May 8, 2020, due to US flight delay some time ago, 110 fight against the COVID-19 pandemic Practicing the mission and winning supplies. When the cargo warehouse was filled, Zhai Chenfei, one of the beautiful volunteer international students preparing to return from Amsterdam Case the flight crew and the passengers worked on China Southern Airlines flight CZ308 were stranded and of pandemic prevention and control in together to move these precious "life-saving "Every mask, glove, unable to return to China as the students may be required China supplies". From the outbreak of the pandemic and protective suit to be quarantined at the airport for at least one week. In to the temporary suspension of the Nairobi order to ensure the smooth return of overseas students, in the cabin seems Zhai Chenfei is an pilot for the Hubei Branch of route, there are seven such "mask flights" that China Southern Airlines Amsterdam Sales Department to have a heartbeat. China Southern Airlines. During the pandemic, have provided valuable supplies for the front coordinated with the Operation Command Center and They come from Mr. Zhai, 25, joined the volunteer service team line of the fight against the pandemic. Customer Service Department to initiate the emergency Academician Zhong Nanshan Chinese compatriots and drove through the streets of Wuhan every Spoke Highly of the Service Work plan, contact the local airport dispatcher to arrange for who are separated by day to help distribute large quantities of donated of China Southern Airlines the landing of the previous flight to shorten any transfer mountains and rivers!" materials. During his two months as a volunteer, time and arrange an airline representative to assist in the he drove nearly 10,000 kilometers, delivered passenger transfer. It only took 40 minutes to ensure the - Xu Danqi, disinfectant water, vegetables and steamed bread smooth transfer of 110 passengers, allowing overseas 777 Captain of the to residents and hot pots to medical staff located students to return to the embrace of their Motherland. "mask flight" in the remote Huoshen mountain, and cakes to nurses on their birthday. It is the silent dedication of countless volunteers like Zhai Chenfei that fills our Motherland with endless love and hope.

"Serving the people is really doing these things in a Academician Zhong Nanshan was invited to give a lecture on pandemic prevention and control down-to-earth way and not just a slogan".

- Zhai Chenfei Academician Chen Wei praises the service of China Southern Airlines 20 20 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited About Us 21 21

China Southern Airlines Staff Pandemic Prevention has built a wall of COVID-19 prevention techniques according to different risk levels, Improve the protection Strengthen the different positions and standards protection of front-line sta Reduce aggregation different regions Develop, publish and distribute a Formulate guidelines for the Limit aggregation activities The entire process of Before departure, each aircraft has been deeply disinfected and all flight personal protection manual for protection of pilots, cabin through the use of online video conferences and control crews has been provided with body temperature detection devices, Protection standards for all airline all employees. The protection attendants, security, maintenance, flight prevention and the number of oine control weaves a thick surgical masks, gloves and other pandemic prevention supplies. employees were clearly defined standards of di erent posts are ground service, freight and other Preparation dened in di erent levels and special posts and provide meetings by implementing safety net and a personal protection manual the sta of high-risk internation- protective articles such as goggles, sta peak crossing dining and for other measures to reduce the Departure was published to ensure the safety al routes are arranged regularly disposable gloves and masks for Passenger risk of COVID-19 infection Strictly implementing classified Flight crew check the temperature of all passengers; disinfect their and health of all of China Southern and managed centrally front-line sta Check-in prevention and control of flights hands; complete a bi-lingual health declaration; adopt the mode Airlines’ more than 80,000 employees to span joint prevention and of "one open and one close"; widen the contact distance between and senior managers. Focus on 2020 management of every flight, every counter staff and passenger; mark the waiting areas with a beige link and every passenger. control line to separate passengers and flight crew; arrange China Southern Airlines is fully passengers to set in separate seats from one another; strictly committed to: implement a nucleic acid test prior to departure and verification Returning to Work and Production Prevention and control of COVID-19 for passengers to take an international return flight. on all international flights As the pandemic situation in China fight against the COVID-19 pandemic Practicing the mission and winning Reduce incoming flights from high- Passenger continues to stabilize and the Resuming Domestic Flights. When appropriate, China Southern Airlines offers customized charter Check-in risk countries and regions According to the seat number, flight crew arrange and invite resumption of work and production China Southern Airlines is arranging for the flights and simplify the process in its rapid response resumption of its flight schedule as well as capacity to provide governments and enterprises with a quick Limiting the number of passengers passengers to sit freely; open the queue distance when in various places progresses, China travelling on international flights, allocation of previously grounded aircraft and green channel for resuming work and production boarding; guide passengers to use self-service equipment to Southern Airlines senior managers available flight crews as well as designating charter flights to meet the temporary and urgent and board and check the temperature of all passengers every four work tirelessly to open up its vast hierarchical flight recovery plans for areas with needs of personalized resuming air transportation. Protecting the safety of all hours during each long-distance flight. flight network by resorting flights, different risk levels and the orderly restoration This requires the organization of "point-to-point" On-board of routes in medium-risk areas to gradually poverty alleviation and resumption charter passengers, flight crew and pilots. customizing return charter flights and Service restore routes in high-risk areas. flights to help workers return to work safely. ensuring material transportation in continuing the fight against COVID-19 to provide a safe environment for the resumption of work and production China Southern Airlines continue to pay China Southern Air Cargo has never been In the early stages of the pandemic it in various places. close attention to changes in the entry busier and more vital to the health of the was found that the distribution of in- policy of various countries and carry out Motherland. The Company: flight meals, newspapers, magazines, the restoration of international flights and the Introduced complimentary transportation of donated blankets, earphones and other service adjustment of aircraft types. The Company is fixed pandemic prevention materials. products caused cross infection and at restoring flights for international students in Formulated the transportation guarantee scheme of thus were cancelled. China Southern Australia and New Zealand and increased the flight pandemic prevention materials. frequency from Guangzhou to Sydney, Melbourne, Establish a new cargo communication mechanism. Airlines regularly played COVID-19 Auckland and other destinations in accordance Green channel of pandemic prevention and rescue anti-pandemic videos during every with immigration policies of varied nations to help materials were unblocked 24 hours a day. domestic and/or international flight international students return to school and launched Ensures the smooth and orderly links of freight sales and single-use, bi-lingual anti- the "Overseas Student Recruitment Order" activity to and operation, and provide preferential travel for overseas students. Opened all links for shipping space, security pandemic reading materials were inspections, customs, loading and unloading placed within each aircraft and unblocked. updated daily. Combined these and other measures taken by China The COVID-19 pandemic will eventually pass and the red kapok flowers of Guangdong will again Southern Cargo ensured that there is no mistake bloom bright and beautiful. China Southern Airlines will continue to adhere to the spirit of the between rescue and pandemic prevention and important speech and important instructions issued by General Secretary Jin Ping on coordinating freight transportation. the promotion of COVID-19 pandemic prevention and control and economic and social development and will not relax in the normalization of pandemic prevention and control … to win both pandemic prevention and control and economic development. 22 22 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited About Us 23 23 23

pril The North and the South Echo and 29 Fly Together to Serve the Country Decemer 2020 1 Daxing Nanhang City opened and the units of 2019 China Southern Airlines in Beijing were fully In 2020, China Southern Airlines The Company continues to: stationed at the Company’s newly expanded Daxing base. made every effort to start a bold new Optimize its airline route network. China Southern Airlines and British journey in the era of the exciting Upgrading the passenger travel experience. Airways signed a joint venture Guangzhou - Beijing "double hub", Build an international aviation hub. cooperation agreement at Beijing echoed by the north and the south. Speed up the construction of world-class air transport enterprises, and Daxing International Airport. Serve the national strategies such as the coordinated development of Beijing, Tianjin and Hebei and the construction of Guangdong, Hong Kong and Macao Bay area.

Set Sail from "Daxing" to the Future Octoer 2 The full realization of Beijing Daxing Focus on 2020 2019 International Airport is not only a pril practical action of China Southern 32% 7.157 million 50% The rst 13 routes of China 12 Airlines to serve the national strategy but 46 routes have been opened 7.157 million passengers, 2.52 At Beijing Daxing International Southern Airlines are ocially a long-awaited development opportunity at Beijing Daxing International million pieces of luggage and Airport, four turn to MCT (shortest transferred to Beijing Daxing 2020 for China Southern Airlines to promote Airport, with 15,000 flights, 11204.5 tons of cargo and transfer time) standards have International Airport. its own strategic breakthrough and high- accounting for more than 32% mail were moved by China been reduced by 50% compared China Southern Airlines transferred 50% of Fly Together the Country to Serve and the South Echo The North quality development at the largest airport of the total number of flights at Southern Airlines at Beijing with that of Beijing Capital its ights from Beijing Capital International Airport to the new Beijing Daxing Interna- in the world. As the largest main base the new airport. Daxing International Airport International Airport one of the tional Airport - marking the largest airline of Beijing Daxing International during year 2020. best in the world! ay single-day aircraft transfer of China Airport, China Southern Airlines has used Southern Airlines. 1 a maximum effort to build a Beijing hub, 0 arch 2020 optimize the layout of route capacity, 100% of the entire luggage Septemer build a convenient air transportation 94.30 % 28.8 million 2 tracking process is now realized Guangzhou Aircraft Maintenance Engineering network to meet passenger travel needs The punctuality departure rate In the future, China Southern 2 for all inbound and outbound 2020 Co., Ltd. (GAMECO) - Asia's largest hangar and further help Daxing International at Beijing Daxing International Airlines is expected to undertake pril flights, and passengers can know 2019 regular inspection line ocially opened. Airport build a world-class aviation hub. Airport is 94.30%; the 50% of all air passenger business China Southern Airlines has built the the flight and luggage status 10 punctuality rate of departure volume at Beijing Daxing The successful departure of China Southern largest operation control center in in real time through "China flights at Beijing’s two airports International Airport. The Airlines ight CZ3001 marked China Southern Asia, with 12 units and 72 seats in the 2020 Southern E-line". The amount of is 92.91% and the docking rate Company will spare no effort to Airlines ocially launched air services at Beijing core operation area. luggage lost since the opening of Daxing International Airport build a "double hub" between Daxing International Airport. Asia's largest hangar aviation materials warehouse of all China Southern Airlines bridge is 91.14%. Guangzhou and Beijing. Before opened at Beijing Daxing International Airport. flight from the new Beijing 2025, there will be more than airport is zero. 900 flights daily departures and landings at Beijing Daxing International Airport - carrying more than 28.8 million passengers. 24 24 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited About Us 25 25

As China Southern Airlines’ route network continues Live up to the China Southern Airlines, through the action plan of China Southern Airlines Group, proudly serves Guangdong, Hong to be optimized, the airline will continue to emphasize Kong and Macao in the Dawan District and the implementation opinions of China Southern Airlines Group in supporting its core routes from Beijing Daxing International Great Trust and Shenzhen to build a leading demonstration zone of Socialism with Chinese characteristics then clarifies the development Airport to Guangzhou and Shenzhen; this will allow Building a Dream pattern of "giving priority to Guangzhou and Shenzhen, with multiple supports"; continues to build the hub operations at for the maximum investments in Shanghai, Hangzhou, Baiyun International Airport Guangzhou while improving the route structure of Shenzhen and Zhuhai, and promotes the Chengdu, Chongqing, Changsha, Haikou, Sanya and Bay "integration" of the Dawan District strategy to better serve the Guangdong-Hong Kong-Macao Greater Bay Area and support other domestic airport markets so as to gradually Shenzhen to build a pilot demonstration zone for socialism with Chinese characteristics. build a number of brand express lines and open new Beijing Daxing International Airport to Pudong, Xiamen, Additional Reading Guangdong-Hong Kong-Macao Greater Bay Area "Integration" Strategy Wenzhou, and Huizhou, Lanzhou, Kashgar and other In 2020, the Civil Aviation airport destinations which in turn further increases the Administration of China officially coverage and density of the Beijing transportation hub. issued the "Implementation Opinions of the Civil Aviation Administration Building an air bridge for Dawan District to Build a "bay area" product system of on Supporting the Coordinated reach international, domestic and regional transportation, service rights and network Development of Civil Aviation in China Southern Airlines will continue to optimize destinations advantages Octoer the layout of its transport capacity. By taking the Guangdong-Hong Kong-Macao ugust Greater Bay Area". The issuance of advantage of the transition opportunities at Beijing Focus on investing in the second and third Develop comprehensive transportation 2 a series of documents establishes tier market capacity in East China, Central options to meet passenger tra c demands 2 Daxing International Airport, the Company will optimize Septemer that the Guangdong-Hong Kong- South and Southwest China and improve the express line of China the time layout, flight scheduling and transfer flight 2020 2020 Macao Greater Bay Area will build a Southern Airlines with complimentary air 22 new pattern of regional coordinated Increase the number of trunk lines and connections of all routes landing and departing from transfers With the last aircraft transfer to development with multi-core drivers increase the capacity investment in the China Southern Airlines started 2020 Beijing Daxing international Airport which in turn will Beijing Daxing International for international aviation hubs in Hong mainstream market Further expand air catering, the third batch of Daxing transfer provide extensive new travel services for passengers Airport, China Southern Airlines Kong, Guangzhou, and Shenzhen overnight accommodations, work, with the transfer of 44 China Southern Airlines throughout the capital city region. and multi-point linkage of airports in Connect the hub at completed its 100% transfer goals car rental and other tourism domestic ights to Beijing carries 10 million Macau and Zhuhai. Together with Hong Baiyun International Airport Network Product ve months ahead of schedule. services Daxing International Airport. departing passengers Kong and Guangzhou, Shenzhen has Guangzhou with eastern integration integration China Southern Airlines has launched its extensive from Beijing Daxing been included in the first core of the and western Guangdong Unify the International Airport. transportation connection service at Beijing Daxing international aviation hub in the Greater market, International Airport which will facilitate the travel of Bay Area. coordinate the passengers. The Company launched a series of ground layout, and une coordinate the transportation services covering light rail, high-speed development 9 rail, airport buses, airport shuttles and new valet airport parking. It only takes 19 minutes to reach the departure Market Service 2020 integration integration terminal at Beijing Daxing International Airport by the "In the future, China Integrated customer service Integrate sales resources and management to enhance the new subway Daxing Airport Line. The entire process of Southern Airlines will China Southern Airlines Flight CZ3139 policies to improve the travel service experience of high-speed rail connection from baggage check-in to strengthen the integrated departed from Wuhan Tianhe International integration level of the passengers in the Bay Area Airport to Beijing Daxing International check-in and boarding is 100% paperless to improve the construction of airports in airports in the Greater Bay Area Airport and passenger air service between passenger travel experience. the Dawan District, including Unify service standards and implement Optimize channel management in Wuhan and Beijing were o cially restarted. Guangzhou and Shenzhen, customer service systems of the Greater Bay Dawan Bay area through a channel Area Group and optimize the allocation management model, new assessment of market, operation, model and customer strategy Optimize the maker system, simplify the security and other resources. enrollment process of frequent visitors China Southern Airlines "I came to Beijing to travel. After buying an air will continue to increase ticket on China Southern Airlines, I got a 30 yuan its capacity investment in high-speed rail cash back coupon. It took only 30 Shenzhen and improve its Septemer minutes for me to travel from Beijing west station route network." 2 to the new Beijing Daxing International Airport On June 1, 2020, the CPC Central Committee and the State Council announced the construction of Hainan free trade port, station. The entire travel experience was very - Liu Guojun, proposing to promote the joint development of Hainan free trade port and Guangdong, Hong Kong and Macao Bay area. 2020 smooth and fast … and I could enjoy the scenery General Manager, China Southern Airlines will further improve the route layout from Hainan to Guangdong, Hong Kong and Macao, Yangtze all the way out of the high-speed rail window." Shenzhen Branch River Delta and Northeast China and landed the first domestic aircraft leasing project which will aid in the development of On the rst anniversary of its entry into Beijing core industries of Hainan aviation economic service chain. Daxing International Airport, the impact of -Ms. Zhang, passenger China Southern Airlines' permanent new Beijing hub has emerged. 26 26 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited About Us 27 27

Get rid of Poverty and Strive for Industry Driven In 2020, China Southern Airlines Likewise the Company works China Southern Airlines built a Better Life helped designated counties to to develop rural characteristic e-commerce platforms through attract financial investments with industries. China Southern Airlines multiple channels at rural more than 30 labor-intensive senior managers worked to develop demonstration county projects; the It is a solemn promise made by the Party Central Committee to the people of China that all the rural poor people will be lifted out of poverty by 2020. China Southern enterprises, were introduced and agricultural cattle breeding industries establishment of Pishan County Airlines firmly implements the major decisions and plans of the Party Central Committee and the State Council; establishes a leading group for poverty alleviation settled in Moyu and Pishan counties, according to local conditions to E-Commerce Characteristics and development; makes overall planning for poverty alleviation; explores and forms a characteristic poverty alleviation mode of "aviation leading, industry driving, with a total investment of 670 million cooperate with professional planting Museum; drive e-commerce education based, care and assistance, sunshine poverty alleviation" which helps win the battle against poverty and build a moderately prosperous society. By the end yuan, providing more than 6,000 new cooperatives, and build more than 10 entrepreneurs more than 700 people, of 2020, Moyu and Pishan counties in Xinjiang, which are designated by China Southern Airlines to help the poor, have all achieved poverty alleviation. jobs and helping more than 40,000 industrial projects, such as pollution- online and offline transactions of people to move out of poverty. free sweet potato and vegetable more than 146 million yuan; the use planting base, "Xing" Fu Happiness of China Southern Airlines on-line Industrial Park, "Sunshine China mall, e-commerce platform, staff Southern Airlines Ginkgo Industrial mall and other platform advantages Aviation Leader Increase capacity Improve the route Unblocking the "new Poverty Alleviation Base", "Navel as well as the delivery, promotion of investment network channel" for poverty Orange Demonstration Plantation", tourism resources and characteristic alleviation "China Southern Airlines Wengang products.

Focus on 2020 Village Pitaya Base" and chicken, The operating passenger The number of aid routes goose, sheep breeding. capacity of the China to Xinjiang increased to 36, Focusing on the purchase of Southern Airlines Xinjiang connecting 23 cities in 16 in-flight catering and aviation Branch increased from 50 aid provinces and cities. supplies, it is necessary to Through labor union welfare in 2014 to 60 in 2020 with introduce businesses in and procurement, group purchase of an average annual growth around China’s airports to employees and special action of

for a Better Life of PovertyGet rid and Strive rate of 7.61% in passenger build factories and invest consumption poverty alleviation, the traffic volume in Xinjiang; capital into villages to promote Company has helped to sell more wide body aircraft were the "project of poverty than 80 million yuan of agricultural introduced and airlines alleviation products into the products in designated poverty were dispatched to Kashgar blue sky"; it is necessary to alleviation counties in Xinjiang. to transport agricultural formulate preferential policies products. for freight poverty alleviation to help landing enterprises and agricultural products solve their respective transportation problems.

Ma Xulun, Chairman of China Southern Airlines Group Company, visited China Southern Airlines Poverty Allowance Industrial Park for field research, emphasizing the in-depth and solid promotion of targeted poverty alleviation. 28 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited About Us 29 29

Care and Assistance Education China Southern Airlines Strengthen the quality Organize systematic skill has been dedicated to education of teachers training Based building high standard and students Sky Pearl Club Primary China Southern Airlines organized Schools To improve the quality education of systematic skill training with more teachers and students, the Company than 1,500 grassroots cadres and A total of more than 11 million organized youth from designated more than 22,000 technical personnel yuan has been donated to build counties to participate in the China in designated counties have been Carry out the "emergency" Improve the ability of China Southern Airlines is the Nanhang Pearl Primary School Southern Airlines Summer Camp; trained; night schools for farmers have action medical service committed to help in the in Pishan County and the Nanhang organized teachers to study at the been fully operating and training fight against COVID-19 Focus on 2020 Pearl Kindergarten in Moyu County. South China Normal University; activities have been carried out in China Southern Airlines has carried In Moyu County, China Southern A total of 58 million yuan has been supported the primary school football employment skills, e-commerce, out "emergency" activities with a Airlines carried out free physical More than 600,000 yuan worth contributed to build the high team of Kawak township of Moyu poverty alleviation publicity and total of 10 million yuan was donated examinations for disenfranchised of pandemic prevention supplies standard Nanhang Pearl Primary County to participate for its sixth medical personnel. to rescue 1,591 patients with severe people; medical treatment for serious and other materials were allocated School in Moyu County, and more consecutive years, and cooperated diseases in Moyu County and 1.13 diseases; 100% coverage for the poor to designated poverty alleviation than 150 teaching computers and with the Ministry of Education to million yuan was donated to establish and standardization construction of counties to carry out the care action for a Better-off Life of PovertyGet rid and Strive 43,000 books have been donated to build the National Youth campus "early childhood development center" medical institutions, to improve the of village staff. the Nanshan Pearl Primary School in football "stars all over the sky" in Moyu County to treat 231 children remote medical service capacity and Pishan County. training camp in Moyu County. stricken with cerebral palsy. reduce the medical burden of the masses.

Sunshine Poverty China Southern Airlines Alleviation formulated regulations and The Company used these systems such as poverty positive platform to share alleviation procurement the good news of its positive management measures, governance out style Carry atmosphere Create a good poverty alleviation efforts external donation which shares the many great management measures stories of China Southern and incorporate poverty Airlines' poverty alleviation alleviation work into the scope efforts to, establish a model of party building assessment, of poverty alleviation, and party group inspections, create a strong atmosphere internal inspections and of working together to help audits to ensure that poverty poverty alleviation. alleviation work is fully transparent.

Students at the new Nanhang Pearl Primary School in Moyu County 30 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited About Us 31 31

Xin Xing, "The Nation's Upgrading to Case Good Young People"

On January 26, 2018, Xin Xing, Secretary Using China Southern Airlines model to drive poor areas of the Party branch of the ticket office of Case out of poverty the marketing department of Xinjiang Branch, came to Jiayigelak Village, Pixina Township, Pishan County, Hotan Prefecture, Xinjiang and started his poverty alleviation Industry Driven work. It was like being a spinning top for

Focus on 2020 three years. In 2020, Xin Xing won the Around the "Alpine ecology" and "industrial upgrading", China title of "national upward good youth" and Southern Airlines formulated the industrial poverty alleviation plans "excellent first secretary" of Xinjiang Uygur for Datang Village, Xinning County, Hunan Province and constructed Autonomous Region in 2019. the industrial development mode of "collective driving, whole village participation" and built industrial clusters such as ecological Aviation Navel Orange Garden in Datang Village, Xinning County, Hunan Province agriculture, aviation orange industry, planting and breeding Opening up markets in light of local for a Better-off Life of PovertyGet rid and Strive cooperatives. China Southern Airlines built poverty alleviation conditions, Xinjiang specialty products go factories and rice processing centers to promote the industrial Sunshine Poverty Alleviation to other places upgrading of Ecological Rice and Camellia oleifera. Cultivate technology and sales team, start the brand of "Datang Village"; China Southern Airlines signed a joint construction agreement The local walnuts are rich in varieties and set a record of daily sales of more than two million by the national with Wengang village Party branch of Huaiji County, Zhaoqing City, high in heart healthy oil content. However, 832 poverty alleviation e-commerce platform, form a sustainable Guangdong Province, organized 132 party members and cadres from due to factors such as remote locations, development industrial mechanism, and lead Datang Village to 18 party branches to establish a pair relationship with 132 poverty- poor logistics and “backward” sales transform from a poor village into a "model village for poverty stricken families, and provided cultural and educational assistance methods, they have not had a good market. alleviation in Hunan Province". and condolence materials. At the Wengang Primary School, we In order to open up this market, Mr. Xin Xing the adjustment of agriculture and animal knowledge to enter the campus, so that carried out the activity of "pairing to help students, helping to weave and his work team dedicated themselves husbandry and rural economic structure; children can learn more knowledge. a dream of blue sky", and delivered the ideal course of "blue sky Education Based Care and Assistance to this effort and with their efforts, in 2018, vigorously promoted the export of specialty Mr. Xin pay close attention to the living dream, happy dream" to poor students, so as to realize the "double the total income of unsold walnuts for was products and expanded the village environment of the villagers and coordinate promotion" of poverty alleviation and development and grass-roots China Southern Airlines China Southern Airlines helped 13 over 600,000 yuan. From early October collective economy. The annual income of funds of one million yuan to improve roads, party construction. organized its staff to carry poor households in Shili Village, 2019 to March 2020, they sold 17.7 tons of the village was about 1.6 million yuan and drinking water and other projects, to make out the activities of "blue Panzhou City, Guizhou Province walnuts, generating new sales income of the average household income was more the villagers lives more comfortable. More sky class - I set sail with our to move rural residents out of more than 780,000 yuan, which has injected than 5,000 yuan. than 1,500 visits and 650 household visits Motherland", and led 30 dilapidated houses and 217 old an economic strong impetus into poverty were made to raise funds for the operation children from Lianshan town of houses that were then renovated. alleviation. National unity is deeply rooted in of the poor villagers and send blessings to Guangxi to visit the Guilin base Company staff organized villagers to the hearts of the people, and the "first all villagers. of Guangxi Branch and one- participate in the construction of 50 In addition, Mr. Xin also introduced the secretary" is well deserved on-one meetings with pilots, cubic meters high water level pool to Auricularia auricula greenhouse breeding flight attendants, engineers solve the problem of water use and industry; broadened the sales channels Mr. Xin pays close attention to the local and other staff, so as to sow long-term abnormal water supplies. of apricots; invested in the construction education situation, operated evening seeds of future dreams for the Kitchen and toilet renovation project of goose breeding; distributed poverty schools for adults and children, and children. was carried out and the village alleviation sheep to villagers; promoted organizes activities for civil aviation residents could use clean toilets. 32 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited About Us 33 33

Honors

The China Southern Airlines Group was rated as the second “good” in 2017 in the performance evaluation of designated poverty alleviation Poverty Alleviation Report Card work by the central unit and the highest in 2018 and 2019 as “good”. Poverty Alleviation Footprint China Southern Airlines was awarded the 2018 Moyu County, Pishan County, Xinjiang Uygur Dispatched poverty Poverty Alleviation The number of poverty- Poverty Alleviation Organization Innovation Autonomous Region alleviation cadres Fund (10,000 yuan) stricken people who Award of Xinjiang Uygur Autonomous Region. Huaiji County, Guangdong Province (person time) helped file and register Poverty Alleviation Xingcheng District, Pulandian District, Liaoning The China Southern Airlines Xinjiang branch won the highest level of “good” in the 2020 Focus on 2020 Province 14,845 Qichun county and Dianjun District of Hubei 42,160 assessment of the effectiveness of poverty Province alleviation in the autonomous region. Ledong Li Autonomous Region, Hainan Province 261 Fuchuan Yao Autonomous County, Guangxi Zhuang Autonomous Region Getting rid of poverty is not the end, but the beginning

for a Better-off Life of PovertyGet rid and Strive point of new life. China Southern Airlines thoroughly Panzhou City, Guizhou Province 4,462 implements the spirit of General Secretary Xi Jinping's Zhenping county and Sheqi County of Henan 83 important speech, continuing to push forward the overall Province 6,063 linkage between poverty alleviation and rural revitalization; Poverty alleviation team members from the Northern Branch of China Southern Airlines and Taonan City, Jilin Province consolidate and expand the achievements of tackling local officials check the quality of melons. Xinning County, Hunan Province poverty; promote rural revitalization; speed up the modernization of agriculture and rural areas; play a leading Xiushan Tujia and Miao Autonomous County, in 2020 role in a wider and wider field and write a new chapter in Chongqing since the implementation of targeted poverty alleviation work in 2003 the revitalization of the countryside in the new era.

2020 year

Industrial Development and Transfer employment to eliminate Get rid of poverty through education Poverty alleviation through Other projects poverty alleviation poverty health Help the poor households to get Invested 33 million yuan Invested 2.54 million yuan in education poverty alleviation funds Invested 2 million yuan million yuan 7,000 yuan 1,391 jobs in medical and health funds 6.95 Implemented 28 projects of industrial poverty alleviation was invested in vocational skills Sponsored funds training Trained 86 poor students 1,024 grassroots 24 projects 5,368 people cadres

were trained in vocational skills were implemented 34 34 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited About Us 35 35

Green Flight - Implementing the Management Green Development Strategy Promotion China Southern Airlines implements the national green development concepts; the decision-making and deployment of the national "three year action plan for winning the blue sky defense war"; gives full play to its aviation professional advantages Route Optimization Aviation Fuel Management to increase energy conservation and emission reductions, pollution prevention and control; innovates products and service modes; reduces the adverse impact of flight on the environment and strives to promote the green, circular and low-carbon Through the analysis of flight data, the difference Through the development of fine stowage, the development of China Southern Airlines for the national green ecological development and contribute to the improvement of flight time, distance and fuel volume of different accuracy of the estimated industry load is improved of ecological environment. aircraft arrival and departure routes is automatically and the "virtual refueling" and "fuel consumption" counted and the optimal routes are then selected. caused by the industry load deviations are reduced.

On the flight plan page, the historical utilization rate Through the docking of "Aviation Oil E-Cloud" and Technology Fleet Off Fuel Saving Dynamic of route and temporary route can be optimized on the AVIC smart aviation oil system, the online real- Optimization Switch Release Adjustment of same day and the crew can apply for direct temporary time interconnection of aircraft refueling data and Optimization route during flight which can effectively shorten the settlement information is realized and the efficiency of

Focus on 2020 Cruise Center of With the introduction of China Southern Airlines follows China Southern Airlines engineers range. aviation oil settlement is improved. new aircraft models such as the fuel savings of turning off an perform mining technology which is Gravity the Airbus 350, Boeing 787 engine when the aircraft is taxiing used to monitor the release height of Dreamliner and the Airbus that effectively reduces taxiing each flight. Through data guidance, This Corporate Social Responsibility 320neo, the fuel efficiency of the fuel consumption. the timing of flap and landing report studies and evaluates the Land Sliding Paperless Service fleet continues to be improved. In 2020, gear release can be scientifically actual impact of adjusting the

Green Development Strategy Green Flight - Implementing the In 2020, the company-wide single- understood to reduce more than parameters of cruise center of Analyze and optimize the taxiing route of aircraft China Southern Airlines promotes paperless handover engine slip-in execution rate was 2,700 foot release flights, shorten the gravity on flight, increase cruising approach, select the taxiway close to the parking stand between ground service personnel and flight time of large resistance configuration altitude and formulates the dynamic to reduce aircraft taxiing time. attendants, guiding passengers to download China aircraft were 32 adjustment scheme and risk and save fuel consumption. Southern Airlines app for Android Smartphones and introduced and % 93.77 In 2020, prevention and control measures of provide paperless services for passengers in the whole a year-on-year increase of the implementation rate of fuel Boeing 777F cruise center of gravity. process of ticket booking, payment, check-in, security 27aged aircraft withdrawn saving and release was By optimizing the cruise center of check-in and boarding. gravity, the average cruise altitude from the fleet of which today 57.73 points can be increased by about has the average age The total single-engine slip-in 90.16 %, time was with a year-on-year increase of feet 7.2 years per aircraft 300 hours and the average fuel consumption 25,105 14.31 points per hour can be reduced by about saving more than saving more than 60 kg 7,60 0 tons 3,700 tons of fuel of jet fuel 36 36 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited About Us 37 37

Encouraging passengers to eat on demand

Based on field research and big data analysis, China Southern Airlines found Green that because some passengers have already eaten while at the airport prior to their flight, there is no need for on-board meals. However, due to Service the hygienic production of in-flight meals, these controls are very strict. According to aviation meal safety standards and industry regulations, "The phenomenon of food uneaten meals on board cannot be recycled, which can easily cause waste of waste is shocking and resources. distressing!" Accurate Provide multiple tracking of

Focus on 2020 channels to - General Secretary ight meal In order to reduce the waste of food on-board its flights, China Southern participate Airlines actively responded to the clarion call of "saving food" by carrying Xi Jinping made important changes out "green flight" service through innovative products and service modes instructions to stop food and reduced waste by encouraging passengers to integrate environmental waste protection into their own in-flight behavior which obtained positive comments from many worldwide media. Green Development Strategy Green Flight - Implementing the

Created and launched exclusively more than a decade ago by China Southern Airlines, "On Demand Dining" is an important part of the "green flight" service of China Southern Airlines. In the future, China Southern Airlines will further integrate new technologies such as "Internet plus", 5G network and big data to provide improved green low-carbon products and services with the concept of "affinity and refinement" service. 1 2 Some passengers are sent a Passengers can reply to the By obtaining the meal needs SMS to invite them to dine invitation SMS or select green of passengers in advance, By the end of 2020 on the plane on demand. ight service directly in the China Southern Airlines can the "green flight" service has supported the coverage Before the ight departs, airline’s APP ticket buying realize the exible adjustment of all domestic sites of China Southern Airlines ight attendants and process, WeChat ocial of the number of meals, passengers acknowledge account, ocial website touch real-time catering information and conrm their meal screen version, "meal and accurate energy saving status. reservation" or by telephoning and consumption reductions. Sending more than The number of "green flight" the customer service hotline. participants in 2020 was Bonus FFP mileage in China Relying on the ERP 13.07million Southern Airlines’ Sky Pearl information system for Club is awarded to planning management, SMS invitations to passengers, 1.2 million passengers forgoing arranging special personnel, inviting them to forgo in-flight in- ight meal services. monitoring the changes in meal services the number of ight reservations every two hours and adding meals (if needed) prior to departure achieves precise delivery. 38 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited Safe and Happy, Guarding the Journey at Ease 39

Safe and Happy, Guarding the ourney at Ease

China Southern Airlines strictly abides by the "Civil Aviation Law," "Safety Production Law," "Emergency Response Law," and "Anti-Terrorism Law" and other safety laws and regulations as formulated by the CAAC. This allows China Southern Airlines to stay true to its mantra of continuous flight safety, strict work habits and risk control as the starting point to speed up the institutional transformation and build seven safety systems for safety mechanisms and First Class safety quality. 40 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited Safe and Happy, Guarding the Journey at Ease 41

China Southern Airlines strictly abides by the "Civil Aviation Law," "Safety Production Law," "Emergency Response Law," and Building a Safety Culture Safety "Anti-Terrorism Law" and other safety laws and regulations as formulated by the CAAC. This allows China Southern Airlines Special plan to stay true to its mantra of continuous flight safety, strict work habits and risk control as the starting point to speed up the Management institutional transformation and build seven safety systems for safety mechanisms and First Class safety quality. China Southern Airlines long- and responsibilities into the daily well as staff study and discussion to Sunshine in standing safety culture system is of work of safety rectification, work style promote safety styles, enhance safety great importance to consolidate the construction, rules and regulations skills and work to eliminate potential Strengthen the Flight Teamwork Managing Possible the Heart safety foundation and build a long- construction and safety culture safety issues. term mechanism of safety production. construction - all in an effort to lay a Safety System Security Risks In order to conscientiously firm foundation for safety. The "Guiding Opinions on the Work - Strength Safe Production Trip implement the spirit of the important The construction of seven Style Construction of China Southern In cooperation with the China instructions of General Secretary Xi Encourage voluntary On June 23, the launch of the 2020 safety systems, including safety Airlines Safety Practitioners", "China Academy of Civil Aviation Science with You! Jinping, "fundamentally eliminate the "Safe Production Trip" and the responsibility, rules and regulations, Southern Airlines Pilot Standard and Technology, China Southern reporting potential dangers and effectively curb appointment ceremony of safety training, process control, risk Code of Conduct (Flight Operation)", Airlines’ senior managers reorganized the occurrence of major accidents", The new I-CARE (Information culture lecturers was held. The safety management and control, a list of negative behaviors of safety hazard sources and promoted the China Southern Airlines, in 2020, Confidential Report) version of the culture lecturer group covered safety culture, and scientific practitioners, and a list of professional integration of performance index further strengthened the building voluntary reporting system was made multiple positions in flight, aircraft and technological innovation, job responsibilities were issued in a system into daily management. of its safety culture system, carrying available in 2020. It expresses the maintenance, transportation, cabin, was launched during 2020. The "red book" computerized system. Special rectification was carried out out activities such as safety culture meaning of "I Care" to encourage security and ground and popularizes construction outline was studied for prominent problems in flight, propaganda, safety style building all employees to participate in the safety knowledge for the majority of and formulated with 31 annual maintenance, fire-fighting dangerous and rectification and created a strong Company's safety management to employees; popularize safety culture tasks broken down and steadily chemicals and lightning strikes, air atmosphere for all concerned about review potential safety hazards and to improve safety quality and create implemented with the modernization turbulence injury and other incidents safety in production and participation mitigating safety risks. a safe production atmosphere. The of safety governance further were significantly reduced; special in security development. group of lecturers went to the 19 entrenched. risk control was implemented for subsidiaries of China Southern Airlines COVID-19 pandemic risks, ARJ21 Safety Production Month to give lectures, with the theme of operation, transition operation of Developing a Safe Work China Southern Airlines’ employees "Happy Work, Safety and Happiness", Beijing Daxing International Airport; Style participated in the safety production that expounds on China Southern passenger aircraft luggage transfers China Southern Airlines’ senior month campaign to focus on the Airlines’ positive safety culture, and to cargo aircraft; joint prevention managers consistently push forward themes of "building a safety and calling for active management, full and control mechanism for major with new education themes such defense line" to eliminate the hidden participation, and teamwork through mechanical failure and defect risk was as the "three awes" and the 100- danger of accidents. By studying cases, sketches, videos and games. established to further enhance air day work style which includes General Secretary Xi Jinping's In total, it calls for mutual assistance, ground linkage risk control abilities. safety related activities, centralized important exposition on safety continuous improvement, so as to learning, one-on-one supervisory production, China Southern Airlines establish the sense of ownership and discussions that shares experiences organized "safety production talk" promote the construction of safety and work examples to integrate work cloud classroom safety lectures, culture. experiences with strict aviation rules "safety publicity consultation day" as 42 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited Safe and Happy, Guarding the Journey at Ease 43

Starting from the key links of crew capacity-building, operation control, aircraft maintenance and air security, China Operation Control Aviation Southern Airlines senior managers have identified safety risks and carried out special measures to build a aviation safety Safety process control chain. China Southern Airlines continues Operation command to improve its capabilities to identify Throughout 2020, China Southern Airlines continued to improve its exclusive "flight technology management manual" and safety risk identification at all stages, 1 China Southern Airlines follows Pilot "pilot training program" to review the management of pilots' qualification and abilities as well as work/life elements and integrate expert resources such a unified dispatch and release of Management carrying out flight re-current training. as flight, dispatch, maintenance, performance and meteorology, aircraft at all airports served. This improve operation monitoring standardizes the process of aircraft systems, improve the fault handling release explanation, integrate the Strengthen skills training Strengthen supervision and abilities and ensure the safe operation functions of navigation database assessment verification system and release risk of all flights. Air security China Southern Airlines adopts the "Internet +" training reminder and accurately prompt flight strategy to promote the "online + offline" dual-track China Southern Airlines’ online training monitoring crew operation risk. 6 flight lecture halls were held, training model. This special series of online technical function was launched in 2020 to timely discover potential China Southern Airlines security This allows for the strengthening of seminars such as flight lecture hall; thunderstorm weather; technical capabilities, operational qualifications and other is multi-layered. The Company ground air cooperation. The Company radar technology application; flight technology capabilities risks and create a management system based on the completed the important security and 22,820 set up an inter departmental operation and special training of operational and seasonal learning core competence of pilots. The "implementation plan", tasks of transportation during the participants participated in the monitoring team and operation staff at Beijing Daxing International Airport promote online "evaluation standard" and "style training program" for Spring Festival, special planes and training programs decision support team covering flight, theoretical retraining, and consolidate the theoretical quantitative management of pilot style were issued, the all forms of pandemic prevention maintenance and dispatch, implement foundation of pilots. Offline simulators are used for evaluation system for simulator teachers and inspectors 2 charter planes. No air defense safety hierarchical early warning of flight recurring training programs and through precision training was established and the quantitative assessment accidents occurred, achieving the monitoring and hierarchical response and a series of special training for ability improvements, management was implemented quarterly. best air security safety record in the mechanism of operation events and flight operational skills are continuously improved and China civil aviation industry in 26 comprehensively improve the ability pilot's comprehensive abilities of managing all-weather concessive years. of air support and risk response. situations is improved. The function of fire control management was established and Maintenance no major fires occurred. With the development of national security education and law popularization Case Building an "Industry-University-Research" China Southern Airlines places the education, the comprehensive integrated platform in the field of flight highest values on improving the governance incidents are on the training and safety maintenance fault management decline. China Southern Airlines and control systems. This called security information follows that it for strengthening the application On August 27, China Southern Airlines Flight Safety should carry out "Police Enterprise Co of new technology and air to 3 Research Institute and Flight Industry-University- Construction", deepening cooperation ground communication, accurately Research Integration Training Base was formally with public security organs and formulating aircraft storage schemes established. Through deep excavation of flight big provide a stable internal environment and strengthen the operation control data, the flight training and safety management for high-quality development. of aircraft under low utilization rates. scheme adapted to China Southern Airlines and China's national conditions was developed and This allowed for setting up new the "industry university research" comprehensive flight operations and maintenance platform in the field of flight training and safety was teams. An ARJ21 aircraft maintenance built to escort passengers' safe travel and export technology management committee flight training and safety management information was established and an operation and for international civil aviation“ "Chinese wisdom" maintenance support special team and "Chinese standard". was established which benefited from information reporting and communication mechanism. 44 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited Safe and Happy, Guarding the Journey at Ease 45

More than Safety Performance 18

Case maintenance 14,000 hangars maintenance technicians Opening Asia's largest hangar regular inspection line

CAAC civil aircraft 23 6 Safe flight time Accumulated safe flight time Safe implementation of flights On May 14, an Opening Ceremony of China maintenance maintenance licenses Southern Airlines / GAMECO Daxing regular stations inspection cooperation line was held in the 208 10,000 hours 2,508 10,000 hours 82 10,000 sorties No.1 hangar of Beijing Daxing International Airport, marking the official commencement of the regular inspection line of Asia's largest hangar. Hangar No.1 spans an area of nearly 40,000 square meters and can simultaneously accommodate up to 12 aircraft including two Airbus A380 and three Boeing 777. It can meet the flexible parking of aircraft with multiple models and different maintenance needs of all China Southern Airlines flight departing and arriving at the new Beijing Daxing International Airport.

At present, the application of new navigation technology has become an important pillar in the safe and efficient operation Technology of civil aviation in China. China Southern Airlines continues to enhance the application of information technologies to Escort ensure aviation safety. Maintaining continuous air security 26 year Operation command Flight monitoring

Ten-thousand-hour symptom China Southern Airlines follows all China Southern Airlines utilizes flight Line Operation Safety Audit (LOSA) and Keeping continuous flight safety rate of civil aircraft potential flight risk warnings and through the non-intrusive route observation and record, audit the data, analyze has optimized the function of ESMS the operation risks and errors, put forward effective suggestions, improve the year platform modules, allowing for the training, safety and operation work, and strengthen the safety risk control in 21 0 prompt and early warning functions advance. of information platforms that can Air transportation symptom rate due to General aviation symptom rate of accurately control flight safety risk. Airline engineers closely follow all cockpit voice recordings. Flight units work to corporate responsibility 10000 sorties spot check cockpit conversations during key flight stages, focusing on whether This also includes meteorological flight crew members disperse the “energy” of other flight crew members or risk controls as the Company has interfere with normal cockpit “chat”. 0 0 developed a weather application app with radar jigsaw and lightning China Southern Airlines also closely monitors flight quality including personal Air transportation ground symptom location functions to help crew Flight Data Visualization (FDV) projects, achieve real-time app playback of QAR rate of 10000 sorties master weather data in real time and flight quality monitoring data, analyze flight technology deficiencies and flight structurally assess, predict and control potential risk factors that can aid in improving flight training and flight quality. 0 flight risk. Note: Except for safe flight time and safe flight, the data does not include Xiamen Airlines and non-aviation holding subsidiaries. 46 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited Safe and Happy, Guarding the Journey at Ease 47

China Southern Airlines has formulated an "Emergency Plan for the Prevention and Control of the Novel Coronavirus Pneumonia Passenger Pandemic", the "Guidelines for the Prevention and Control of the Novel Coronavirus Pandemic", and the "Emergency Disinfection Occupational Health and Safety Plan for the New Coronavirus Pandemic of Aircraft", and formulated relevant standards and requirements for personnel Safety protection, environmental disinfection, and food safety at ensuring the safety and health of all passengers.

China Southern Airlines attaches the Occupational Data Safety Index greatest importance to the physical 2018 2019 2020 and mental health of every employee, Death due to work ground crew, managers, pilots and 1 1 1 flight crews and strictly abides by the Proportion of employees died at work "Labor Law", "Occupational Disease (%) 0.0010 0.0010 0.0010 Prevention and Control Law" and Air food safety Cabin disinfection Providing medical other laws and regulations. China Working hours lost due to work assistance Southern Airlines’ staff does a very (working days) 14,485 17,508 12,242 China Southern Airlines is committed China Southern Airlines fully professional job in identifying and to 100% food safety and is proud to disinfects all cabins of all aircraft All aviation doctors in 2020 handling employees’ occupational hold certification of ISO 9001 quality and has formulated disinfection have stayed in the front line of health and safety risks and promptly management system; ISO 22000 standards, programs and anti-pandemic efforts and sent conducts counseling on employees’ psychological issues to ensure their Physical Health Food Safety Management System procedures during the current medical professionals to the AOC Case Aircrew Mental Health Project and HACCP system of aviation food COVID-19 pandemic period. This seats of the Company, timely physical health and psychological systems improve the production and includes measures to take the assisted passengers who may health. All Employees inspection system and mechanism temperature of all flight crews have experienced fever by new Improve employee health management and In order to improve the mental health of all of its flight of aviation food, promote the and pilots before departure; medical observation areas, drafting arrange physical examinations for all employees. crews, China Southern Airlines has formed a flight crew construction of "food safety consistent disinfection of all aircraft emergency manuals and improved Organize online and offline health lectures and mental health project with the construction of three administrator" system and carry out cabins and conduct preventive the emergency disposal process. carry out first aid training. mental health rooms: sand table consultation room, music special rectification activities for disinfection after each flight. Staff Special inspection of food hygiene and safety in relaxation room and catharsis decompression room. China foreign matters to ensure food safety also covering the cabin space, staff restaurants. Southern Airlines encourages the body and mind holistic for all. In 2020, there were no food toilet, garbage room, as well as therapy treatments of all staff through the use of massage hygiene and safety incidents or safety the areas around the cabin door, Female Employees chairs, music relaxation chairs and other equipment. The complaints. small tables, handrails and other "Xinqihang Heart Health" mental health training program Invite experts from tertiary hospitals to popularize areas that have ongoing passenger for newly recruited aircrews was launched in 2020 and a medical knowledge and visits to health clinics. contact. comprehensive professional psychological consultation course was established to help flight crews relieve of any Aircrew psychological pressure and irritability. The doctor in charge of the fleet establishes a follow-up group to consistently track the health of During the COVID-19 pandemic in 2020, flight crews all pilots. performing flight missions were kept in isolation for extended periods of time, and they could neither reunite with their families nor depart from their hotels. Many flight Psychological Health crews had negative symptoms during these extended time periods. In order to do a good job in the mental health of China Southern Airlines places the great aircrews during the pandemic, China Southern Airlines importance to the mental health of all staff and set also established an employee mental health promotion up an EAP aircrew mental health room and "fellow group at help organized special EAP activities for Iranian travelers" psychological care studio; improve the charter flight crew members and Hubei pilots; opened a mental health level of the staff and promote the free hotline for mental health care and made available 20 all-round development of the staff by carrying out online video courses for hotel or home isolated flight crews psychological group counseling, providing one- to help alleviate psychological pressure incurred by flight to-one professional consultation and participating crews due to the COVID-19 pandemic and lockdowns. in psychological crisis intervention. 48 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited Green Environmental Protection, Beginning a Low Carbon Journey 49

China Southern Airlines always attaches the great importance to ecological and environmental protection, gradually improving the construction of environmental systems to actively respond to climate change through the reduction of energy and resource consumption and has become a leader in the blue sky battle and the green and low-carbon development of Chinese aviation.

Green Environmental Protection, Beginning a Low Caron ourney 50 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited Green Environmental Protection, Beginning a Low Carbon Journey 51

Environmental Management Greenhouse gas emissions Energy Consumption

uel consumption per ton ilometer Aviation il（0,000 tons） Gasoline（ton） iesel oil（ton） Coal（ton） ons0,000 tons m China Southern Airlines’ senior Construction of environmental 900.33 managers insist on unswerving 5,012.95 10,199.24 2,100 management system 854.01 4,869.11 environmental protection work, 2020 3,922.78 8,598.59 continuously improving the Throughout 2020, China Southern Airlines continue to promote 613.27 7,282.09 2019 2.95 construction of the environmental the ten specific tasks deployed in the "Guiding Opinions on 2018 2.76 management system that manages Comprehensively Strengthening Ecological Environmental environmental risks and actively Protection Work", carry out the second round of environmental 2.82 promotes the construction of an protection self-inspection, establishing pollution controls and ecological and environmental emergency response work mechanisms and continuously 550 protection information system 2018 2019 2020 2018 2019 2020 2018 2019 2020 improving the construction of the environmental management 2018 2019 2020 that further improves the level systems. 0 of systematic environmental management. Carbon dioide emissions 0,000 tons of C euivalent Ecological and environmental protection 2 Electric（0,000 h） atural gas（en thousand m） Liuid gas（ton） informatization 2020 In view of the time-consuming arrangements, the summary 28,190.80 2019 27,873.09 3,215.06 258.52 of environmental protection information and the lack of 2018 27,425.90 regular updating mechanism for supervision and rectification, 2,537.49 the existing work by Company staff is to build an integrated 195.14167.17 ecological environmental protection and energy management system with functions of data statistics and analysis, risk 2836.03 2,690.14 identification and control, special work deployment, 965.8 environmental protection budget management, sharing and notification. The system is expected to go online in 2021, which 2018 2019 2020 2018 2019 2020 2018 2019 2020 will effectively identify and control environmental risks and 1,931.80 improve the level of environmental management.

Water consumption Waste disposal

otal water consumption ater consumption intensity reatment capacity of haardous n board service harmless waste Carbon dioide emissions per ton ilometer 0,000 tons m 0,000 yuan waste in maintenance treatment capacity ons 0,000 tons m ton （m）

2020 2020 2020 2020 2020 2019 2019 2019 0.6585 2019 2019 2018 2018 2018 0.4514 2018 2018 0.5946 8.88 612.2 8.69 615.205 490.559 9.29 6,597.0 696.65 764.75 8,896.0 7,909.5 471.508 52 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited Green Environmental Protection, Beginning a Low Carbon Journey 53

Special Plan Practice the responsibility of China Southern Airlines and win the civil aviation "blue sky Sunshine in battle"

the Heart The harm from climate change and global warming impacts everyone. The development of the aviation industry is closely related to the ecological environment and China Southern Airlines has resolutely implemented the decision to deploy a - Strength national "three year action plan for winning the blue sky battle" which starts with the introduction of new energy vehicles, with You! the improvement of exhaust gases and the replacement of bridge power supplies to improve the ambient air quality.

Introduction of new Exhaust gas Replacement of energy vehicles improvement bridge load power

These efforts also call for the According to the requirements Issuing the "Notice on Further Control introduction of new energy vehicles of "retrofitting vehicles with of APU Use Time" and "Notice on with the "Notice on Strengthening emission standard No.3 or below" the Promotion and Implementation New Energy Vehicle Charging in the field, China Southern of Ground Power Supply and Air- Management", "New Energy Vehicle Airlines’ engineers carried out Conditioning Equipment Optimization Further Reading Accident Emergency Response Plan" a comprehensive investigation and Guarantee Work Process" and and other documents to guide and completed the retrofitting other documents are used to The APU is a low-power various subsidiaries to formulate of 1,076 vehicles (including standardize the use of bridge- engine located in the tail on-site new energy vehicle use, scrapped vehicles) with exhaust mounted equipment. Since 2018, a of each Airbus and Boeing maintenance and management gas of all vehicles with emission total of 116,000 tons of aviation fuel aircraft. Due to its relatively documents and carry out relevant standard fuel not up to standard, has been saved by using alternative large fuel consumption per unit power and relatively training. In the battle of the blue so as to help improve the APU equipment. large noise, it causes a certain sky, 767 new energy vehicles were atmospheric environment. degree of pollution to the China Southern Airlines actively implements the concept of "green water and green mountains are golden mountains and introduced and 74 charging piles atmospheric environment. were built and currently in use. Responding silver mountains"; implements national energy-saving and emission reduction policies and launches special actions to When the aircraft is parked, win the "Blue Sky Defense" by, reducing carbon emissions, improve carbon asset management and contributing to China's staff will turn off APU and response to climate change. switch to the ground bridge China Southern Airlines has cooperated with CETC to complete the "Beidou to Climate equipment to replace APU based high-precision vehicle personnel dispatching system and has realized for a lower-use power supply the intelligent monitoring of more than 1,000 vehicles in Beijing Daxing which will effectively reduce Change International Airport, Baiyun International Airport Guangzhou and Shenzhen Carbon Monitoring Carbon trading the aircraft's own energy consumption. Bao'an Airport. The system earned a silver award for innovative application of the 2020 satellite navigation and positioning science and technology award. Completing the "China Southern Airlines flight carbon China Southern Airlines set up a leading group for carbon China Southern Airlines was the only Chinese airline in 2020 to win this award. emission data monitoring report verification management asset disposal. Through public auctions, the accumulated measures" manual, Company staff clarify the responsibilities surplus of 695,000 tons of Guangdong carbon allowances and workflow of the relevant departments; the control due to the improvement of flight emission efficiency over With Shenhua coal to liquids and Guangzhou Institute of energy of Chinese mode of different subsidiaries and other issues and manage the years has been sold, and the 2019 annual performance Academy of Sciences, research and promote airworthiness certification and the authenticity, accuracy and traceability of flight carbon of the Guangdong Province carbon trading was completed Honor China Southern Airlines also sustainability certification of coal to liquids and straw to liquids respectively. dioxide emission related data. The monitoring, reporting as scheduled in November 2020. In April 2020, the EU cooperates with scientific and verification of carbon dioxide emissions data for the carbon trading was completed in 2019. In 2020, the China Southern Airlines research institutes and first civil aviation flight activities was completed on time in Company exceeded the assessment in 2019 in the action of earned the title of equipment suppliers to carry This included the study of the pre-treatment mode of automobile exhaust June 2020. double control of total energy consumption and intensity "Advanced Unit of out relevant scientific and transformation with the hydrogen-focused Heli Company. Hydrogen and of key energy consumption units in the 13th Fifth Year Plan technological innovation oxygen are produced by electrolyzing water and injected into an oil cylinder for Blue Sky Defense" and was praised by the Energy Bureau of Guangdong projects. the full combustion of fuel and achieve energy savings while reducing exhaust Province and the Department of Industry and Information from the CAAC. emissions. Technology. 54 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited Green Environmental Protection, Beginning a Low Carbon Journey 55

China Southern Airlines adopts measures such as filtration and activated carbon In 2020, Green Operation Exhaust Gas adsorption to treat exhaust gas in compliance with regulations, and through strengthening jet fuel management, increasing investment in technological million cubic meters Management transformation, and improving energy efficiency, it minimizes the impact of 288 exhaust gas emissions on the environment and society. of waste gas was treated. China Southern Airlines has complied with the Water Pollution Prevention Law and other laws and regulations to Water Resource enforce the management of water resources, compiling with the treatment of sewage, industrial wastewater and domestic sewage and pays close attention to water resources conservation and utilization efficiency improvement in Management all aspects of operation to promote resource conservation. China Southern Airlines strictly follows the relevant requirements of the "Law In 2020, Waste of the People's Republic of China on the Prevention and Control of Environmental the amount of hazardous waste Water saving Wastewater treatment Pollution by Solid Wastes", recycling hazardous wastes and non-hazardous wastes generated in the maintenance Management and handing them over to companies with relevant processing qualifications for process was By innovating the use of aircraft water supply vehicles According to the requirements of environmental disposal. and spray disinfection saves China Southern Airlines protection, wastewater discharge outlets of industrial Treated 3.98 tons of water each time compared with the wastewater, production wastewater and domestic Hazardous waste disposal 471.508 tons, and the treatment rate was original immersion disinfection methods. This has wastewater were built and in use during 2020. 11,025.9 achieved 1,453 tons of water savings in Guangzhou Metering equipment was installed which is operated Hazardous wastes generated in the process of aircraft maintenance, air every year. by special personnel to ensure the normal operation service and ground office are being constantly recycled and outsourced to % tons of industrial wastewater 100 of the environmental treatment facilities of the local companies with hazardous waste treatment qualifications for harmless with a treatment rate of 100% sewage treatment station and track the sewage treatment. treatment capacity in real time. Treated

86,000 tons Types of Hazardous Waste unit Volume of production wastewater with a treatment rate of 100% Waste cleaning agents ton 53.6535 Waste organic solvents ton 12.05 Waste lubricating grease ton 0.778

HazardousWaste Treatment Waste organic resin ton 3.496 Waste kerosene ton 190.96 Waste oil ton 97.4 Maintenance Patent leather, paint residue ton 28.646 Waste activated carbon ton 25.078 Waste acid ton 0 Waste packaging and containers ton 35.5895 Waste lamp piece 700 Spent lead-acid battery ton 5.634 Surface treatment waste liquid ton 18.2225 56 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited Green Environmental Protection, Beginning a Low Carbon Journey 57

Non-hazardous waste disposal In 2020, China Southern Airlines actively promotes the concept of environmental protection, advocates green office and the in-flight service, non-hazardous waste Advocate low-carbon life, organizes environmental protection public welfare activities and encourages passengers and Meal packaging materials, recyclable magazines, office treatment volume is airline employees to establish a sense of environmental protection and conservation and develop a green and and household garbage and kitchen waste generated Green low-carbon lifestyle and consumption. during in-flight are being recycled and being handed over 8,896 cubic meters, with a to qualified companies for recycling and treating. treatment rate is Environmental

Case Carrying out energy conservation Protection publicity week activities to spread the 100 % green concept

From June 29 to July 5 in 2020, China Southern China Southern Airlines introduced the A320neo fleet, equipped with GTF engines, which reduced the noise trajectory by Airlines organized the 2020 National Energy 75%, while reducing fuel consumption by 16% and reducing nitrogen oxide emissions by 50%, promoting China Southern Noise Control Conservation Promotion Week with the Airlines to become a more efficient and sustainable airline. theme of "Green Water and Blue Sky, Energy Conservation and Efficiency". By co-painting oil paintings, signing energy conservation pledges and participating in online mini games that aids in promoting environmental protection concepts, popularizing energy conservation knowledge and practice a green and low-carbon lifestyle.

Case "Empty Plate Operation" into the regulation, put an end to waste into the heart

During 2020, China Southern Airlines implemented the spirit of the important instructions of General Secretary Xi Jinping on stopping food waste and the Company produced the "Empty Dishes Action" pamphlet for employee restaurants as well as the booklet "Strictly Save and Oppose Waste, See My Thirty-Six Strategies"; scientifically managing the production of staff meals; organized seminars to manage the processes of raw material procurement, dish production and table serving; promote the "leftovers index" evaluation system, promptly eliminating unpopular dishes and stopping food waste from the source. 58 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited Affinity and Refinement, Creating a Warm Journey 59

China Southern Airlines implements the " Affinity and Refinement " service standards that provides the most professional in-flight and ground services found in China as well as top flight passenger and freight service and delivers genuine attention to every customer each and every day.

Affinity and Refinement, Creating a Warm Journey 60 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited Affinity and Refinement, Creating a Warm Journey 61

Passenger Service Large service construction, Special plan Building eight systems Create six service brand business cards collaborative and efficient promotion To meet the travel needs of all of service upgrades In accordance with the "Guiding Opinions of China Southern Airlines Group on Promoting Focusing on building six service brand business cards and passengers, China Southern Airlines Sunshine in the Construction of Large Services to Build a World-Class Service Brand", the Company build a First Class service brand system with China Southern strives to promote the construction focuses on the construction of eight aspects of the system and concentrate efforts to Airlines' transportation characteristics by promoting brand of comprehensive services, constantly In 2020, China Southern Airlines promoted the construction of large improve service quality. images in the process of improving service quality … all improving the flight punctuality the Heart services, with "affinity and refinement" as service positioning … combine to provide passengers with the most professional rate to provide convenient in-flight breaking down the barriers between marketing services, ground, air, air transportation service in China. services for passengers, and meet the - Strength Service Control catering, information services and form a large service system that travel needs of people for beautiful air Focusing on "Affinity and meets international standards. China Southern Airlines’ characteristic travel. with You! Refinement" service positioning, CHINA SOUTHERN service brand fully meets the travel needs of passengers and optimizes Service Standard benchmarking world-class airlines

the travel experience. E-TRAVEL to upgrade service standards Providing more diversified and Continuously improving online personalized service products services, realizing worry-free through platforms such as China e-travel capabilities Southern Airlines official website and "China Southern e-Travel", and Service Products improvements to the on-board CUSTOMER EXCLUSIVE Focusing on the “Affinity and Wi-Fi to enhance the Internet Dedicated account manager, Refinement” positioning, Full process experience providing full-process, personalized, the design conforms to the Providing travel planning, one-stop exclusive service international mainstream, reflects ticket ordering, airport ground the overall image of Chinese transportation, exceptional in- Brand Image culture and the unique travel

flight experience from airport Focusing on "Affinity and LUGGAGE

characteristics of China Southern SERVICE arrival to the end of each Refinement" service positioning, Baggage tracking, door-to-door Airlines journey benchmarking world-class airlines delivery and on-line luggage AFFINITY AND REFINEMENT AFFINITY AND to upgrade service standards handling

Service Guarantee SMOOTH TRANSIT Optimizing the design of transfer Strengthening the sharing of products, implement transfer butler Standardization Talent Construction resources to form a service services and continuously improving Providing standardized Strictly manage the qualification guarantee mechanism in which the efficiency of transfer services at services concerning behavior, of service personnel, build a service organs assist front-line the Guangzhou-Beijing hubs language, Company logo and grassroots and logistics support perfect training mechanism and process improve service personnel foreign language abilities 360 AFFINITIVE

SERVICE Optimize the two-cabin "heart-to- Information Support beauty" service and improve the high- Data Center: Places the focus on the end service level of the dual cabins analysis of passenger behavior and Assessment and IN-FLIGHT CUISINE CHINA SOUTHERN Consistency resource utilization and support Evaluation Provides a unified brand service improvement and process Standardizes the passenger According to the characteristics of image, a unified service optimization with big data. evaluation system and improve regional routes, China Southern product and a unified service Service management and the evaluation system Airlines offers fresh and authentic standard control systems provides unified Cantonese and Western in-flight management and control of service catering data, process and resources. 62 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited Affinity and Refinement, Creating a Warm Journey 63

Flight punctuality rate has an important impact on passenger travel and relates to the improvement of China Southern Sincere in-flight service is essential for all of the airlines of China as a service industry, and an important part of building a Flight Airlines' operational efficiency and service quality. China Southern Airlines formulated and improved the "Notice on Quality Service powerful civil aviation nation in the new post-pandemic era. China Southern Airlines senior managers have never forgotten Punctuality Strengthening the Management of Flight punctuality rate" and "Notice on the Implementation of the 100-Day Tackling Activities Experience the original intention of safe flight operations and is committed to providing passengers with "affinity + refinement" quality Rate for flight punctuality rate in 2020" and other documents and continued that have help flight punctuality projects that services, so that all passengers can have a safe and happy travel experience. continuously improve the flight punctuality rate and ensures the punctual travel for all passengers.

China Southern Airlines flight Large operation construction punctuality rate reached Case Heart-warming action to deal with the "extraordinary pandemic" China Southern Airlines continues to carries out large operation construction, uniformly allocating and integrate aircraft and crew resources, caring out flight management to improve flight punctuality rates. 89.88 % Since the outbreak of the COVID-19 pandemic, China Southern Airlines has launched a series of heart-warming services to protect the rights and interests of passengers and provide exclusive discounts for medical staff.

1.36percentage points higher than the average level of the industry It has never been easier for passengers to request a ticket refund or make changes China Southern Airlines’ customer care Ranking first among the to their tickets. The industry's first omni- program provides Gold and Silver FFP three major state-owned airlines in channel refund and change center card extension, general card mileage China for five consecutive years has implemented systematic refund extension and other services to meet the Improve Ground Scientific Maintenance Operational and change processing for all types of travel members' concerns about elite level Operation Efficiency Scheduling Governance ticketing. Automated refund and ticket retention and expired mileage points. changes accounted for 76%, an increase Further clarify the collaborative Carry out maintenance mutual Carrying out the flight of 17 percentage points year-on-year. The decision-making mode and cross assistance; remote A inspection; punctuality upgrade project Company set up a breakthrough project company resource allocation realize resource management and for three consecutive years; team to solve the problem of serious process of AOC. optimize maintenance systems. formulating upgrade measures refunds and change and the inaccessibility from 11 aspects including flight Membership system and product of passengers' demands. The manual Further enhance the Obtained a multi-certificate plan scheduling, ground support upgrades. With the launch of a new time consumption of domestic refund communication between maintenance license issued by external coordination. membership-level Platinum FFP card processing decreased by about 40%, that Maintenance Control Center the Civil Aviation Administration in 2020, China Southern Airlines’ of international E2E refund processing (MCC), Guangzhou Hub Control to further enhance maintenance Carrying out the efficiency membership system has been adjusted decreased by about 75% and that of online Center (HCC) and AOC. capabilities. improvement of the station floor to a fixed + flexible + customized passenger service decreased by about 18%. and launching pre-management, combination of benefits that advances "pushing and driving", towing the coverage of the benefits of the entire aircraft, coordinating favorable travel process for members and to provide bridge positions and taxiing China Southern Airlines members with routes and other projects. a full range of services. China Southern Airlines launched domestic flights with Tribute to the most beautiful retrograde. multiple seats for one person to reduce By actively responding to the clarion call the pressure of pandemic prevention and Flight operation time has been shortened by one Normal flight culture of the Motherland, the Company launched meet the needs of passengers "seating in minute a new "Respect Medical Card" to directly separate seats"; upgraded paid VIP room China Southern Airlines carries assist COVID-19 anti-pandemic medical access to ensure the existence of the rights Reducing ground handing time allows China Southern Airlines’ staff to carry out out high-season base guarantee workers. and interests of purchased customers. the activity of "shortening the time consumption of ground support"; implements efficiency competitions and 100- swift passenger boarding; optimizes the process of aircraft movements on the day flight punctuality campaigns tarmac and optimizing inbound flights which collectively increases the real-time to improve operations and flight function of each support link and quality of operation process node management. punctuality. 64 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited Affinity and Refinement, Creating a Warm Journey 65

Case Introducing the ARJ21 domestic aircraft Case "Happy Flying" helps passengers travel in the most beautiful China The ARJ21 passenger aircraft is the first new turbofan regional aircraft with independent intellectual property rights developed by China in accordance with international standards. The ARJ21 airliner At present, the proportion of consumption in China is constantly adopts a 90-seat full Economy Class layout. Each cabin seat has a width of 17 inches and a 31-inch increasing and expanding domestic demand is an important strategic distance between the front and rear seats. The space is more spacious and the comfort level is higher basis for implementing the new development patterns of the country's than its competitors. There is a USB charging port behind each row of seats, which is convenient for dual-cycle development. In order to further expand the aviation passengers to charge their electronic devices. In 2020, China Southern Airlines introduced 6 ARJ21 marketplace, China Southern Airlines launched its "Happy Flight" travel aircraft. Not only supporting the domestic China aircraft business, the new aircraft also provides package, the first unlimited travel package product tailored for frequent passengers with a more comfortable flight experience. travelers. "Happy Flight" routes covers a wide range of services whereby passengers can flexibly select their travel departure times and make their travel plans accordingly. Customers can redeem and use Economy Class tickets for China Southern Airlines domestic flights (except Hong Kong, Macao and Taiwan) unlimited times during the validity period, providing passengers with a fully transparent travel plan.

Case "Kapok Festival" flight celebrates this special festival

China Southern Airlines launched special themed "Kapok Festival" flights that provide special in-flight services during major festivals, such as holding "Kapok Lantern Festival" theme flights during the Lantern Festival … and "Kapok Double Ninth Festival" theme flights during the Double Ninth Festival to promote traditional festivals and create a warm festival atmosphere for Case Nanhang Baozi – the best Chinese in-flight cuisine passengers. During 2020, China Southern Airlines launched 221 flights with the To meet the needs of passengers, the chef culinary team at the theme of "Kapok Festival" to help build an Nanland Catering Center at Baiyun International Airport Guangzhou international First Class air service brand with has produced authentic "China Southern Airlines Steamed Buns" that "affinity and refinement" as the core. meet the needs of passengers for meals from "cold" to "hot" … all have been “warmly” welcomed by passengers. In July 2020, "Nanhang Da Bao Zi" earned the honor of excellent innovative service case of CAPSE in 2019.

"Kapok National Day" themed flight activities 66 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited Affinity and Refinement, Creating a Warm Journey 67

With the popularity of smart phones, big data and other mobile Internet technologies, people's requirements for intelligent "China Southern Airlines e-Travel" Upgrade Smart travel are increasing. China Southern Airlines continues to upgrading its intelligent services, constantly promoting intelligent Travel travel modes and providing more convenient travel experience for passengers through scientific means. Continuing to optimize the functions of the "China Southern Airlines e-Travel" platform through the "travel center", airline customers can manage their rescheduled trip and/or historical trip anytime and anywhere. Before travel, customers can master information for check-in times; boarding gate; luggage; and flight dynamics; during travel, customers can manage Smart luggage service the entire process services such as seat selection; boarding pass; class upgrade; extra luggage weight allotment and ticket refund and after travel, customers can handle the flight delay certificates. The entire process of baggage With personalized luggage services, China Southern Airlines assumes the tracking, independently researched travel aboard China Southern Airlines responsibilities and obligations of the and developed the "build route first, has never been more effortless safe transportation of passengers and then change (RFID) tag" baggage and personalized service products luggage and expand the business tracking system to realize that the key "Luggage Home" have been cooperation model of luggage information of the whole baggage launched. China Southern Airlines transportation services. The Company The service for wheelchair transportation process is now fully introduced the "baggage home" launched a one-stop service in Special passengers, the elderly, children manageable and passengers can personalized service product in 2020 for luggage loss insurance. If Passenger and other special passengers has grasp the baggage dynamics in real 2020 and after passengers purchase passengers have baggage damage or Services always been an important part of time during the itinerary. At the close the product via the China Southern late arrivals after purchasing baggage the service work of China Southern of 2020, 227 routes at 48 domestic Airlines APP, an express company loss insurance, China Southern Airlines. In order to enhance these and foreign stations and more than will deliver customer luggage to the Airlines can quickly determine and special passengers’ travel experience, 1,400 flights per day have achieved designated location according to the pay for damages on their behalf, China Southern Airlines launched its full baggage tracking. passenger's needs. Passengers do realizing quick claims and adding "special passenger service invitation" not need to wait at the turntable and more peace of mind. to help passengers handle relevant carry their luggage, making travel so their air travel needs through online much easier! self-service channels such as China Southern Airlines APP and SMS, in advance.

China Southern Airlines APP interface setting "baggage home" entrance

Honor

In Dec, 2020, the International Air Transport Association (IATA for short) formally issued the "IATA Baggage Tracking Whole Network Compliance Certification" certificate for China Southern Airlines. China Southern Airlines has become the first airline in Asia and the third in the world to receive this certification, and its entire network of baggage tracking services has reached the international leading level. 68 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited Affinity and Refinement, Creating a Warm Journey 69

Relying on the developed international and domestic route network, China Southern Airlines provides customers with air Freight cargo and mail transport services covering China intensively, radiating throughout Asia, connecting major cities in Europe, Customer Relationship Maintenance Service America, Australia and Africa and providing air cargo corridors to the global freight market. Customer relationship management is an important part of airlines to Protect the Rights Customer Customer Improve Freight Capacity Temperature Control Service improve their customer experience. and Interests of Privacy Complaint China Southern Airlines has always Customers Protection Handling attached the greatest importance to China Southern Airlines closely follows the national policy China Southern Airlines continues to expand the service establishing and maintaining good and air cargo market trends and takes various measures to connotation of temperature control medical products relations with customers, effectively China Southern Airlines adheres China Southern Airlines strictly China Southern Airlines attaches great enhance its air cargo capacity. to meet industry standards and business development protecting customers' rights and to the service tenets of “customer implements the "Cyber Security importance to customer complaints and At the end of 2020, that provides professional transportation solutions for interests, protecting customers' first” and actively protects the rights Law", "EU General Data Protection has established a customer complaint there were It improve the efficiency of freighter utilization and in the temperature controlled medicine. China Southern Airlines privacy, paying attention to customer and interests of customers through Regulations" and other legal and handling department that constantly face of the rising demand for domestic and international has established a temperature control medicine supply feedback and the handling of the innovative acceptance mode of regulatory requirements, formulates improves the customer complaint refund and change business, build and revises "Cyber Security handling process by standardizing 19 freighter routes, freight, China Southern Airlines has actively resumed cargo chain and provide two kinds of products: "China Southern customers' complaints to constantly flights and improved the supply of its transport capacity. Airlines special transportation medicine (passive)" and improve customer satisfaction. a convenient refund and change Management Measures", "Personal the compensation standard, conducts "China Southern Airlines special transportation medicine center in all channels; provide 24/7 Privacy Data Protection Management centralized acceptance and unified and a total of China Southern Airlines promotes "transformation (active)" according to the different transportation online refund and change service to Measures" and other legal means feedback of complaints and tracks and of passenger aircraft to cargo aircraft" while actively needs of temperature sensitive medicine products. The passengers and solve the challenges to ensure passenger privacy and monitors the whole process of handling, 8,431 implementing the deployment of the State Council temperature stability of the temperature controlled of difficult and slow refund and safety within a comprehensive data to ensure that customer complaints can on "further enhancing China's international air cargo medicine transportation can be guaranteed through specific change of cross channel tickets. system. The Company collects and be solved in a timely manner. In view passenger-to-freighter flights capacity and striving to stabilize the supply chain", and measures in cabin priority; the shortest apron operation The Company then optimizes the uses passenger information according of the challenges with ticket refunds set up "passenger aircraft to cargo aircraft" business on time; the shortest port entry and exit operation time; cold automatic processing of refunds and to numerous laws and regulations, during the COVID-19 pandemic period, with a transport volume of both international and domestic routes, and real-time storage; professional container equipment and engine room change, accelerating the processing fully implements the requirements of an emergency handling mechanism was monitoring of the entire chain of cargo booking, collection, temperature control. speed of refund and change and information security level protection, established to deal actively and flexibly. 85,300 transportation, and loading. Concurrently, China Southern improving the efficiency of refund and ensure the safety of passenger This then strengthens the linkage of Airlines ensures the safe and efficient arrival of customer and change. Proactively fulfill the personal information. China various departments to solve customer tons obligation of passenger notification Southern Airlines regularly employs complaints and gradually realize the cargo at each destination and makes every effort to open Honor up the global supply chain. and publish special ticket handling external independent auditors to transformation from passive handling In February 2020, China Southern Airlines was honored announcements on the official website audit information security policies of complaints to active care and provide with the IATA CEIV PHARMA certification issued to facilitate passengers to keep abreast and system security and employ the best customer service experience. by IATA and became the first Chinese mainland company of the latest developments and make authoritative evaluation institutions to In 2020, the complaint rate of China to obtain IATA CEIV PHARMA airlines and ground agent adjustments to their itineraries. evaluate key information systems and Southern Airlines ① was 0.1320 ‰, the double certification. management processes every year lowest complaint rate among the three which timely rectifies security risks and major state-owned airlines of China. prevent network security risks. Extended reading

IATA CEIV Pharma certification is initiated and organized by the International Aviation Association and is the highest standard of international air transportation of temperature-controlled medicine. Satisfaction survey

Passenger satisfaction score Skytrax's cabin service Honor

Once again won the title of "national was 4.56, and score is 4.41, customer satisfaction benchmarking customer satisfaction was ② ranking first among the enterprise" of China Quality Association, three major state-owned the highest market quality credit rating AAA airlines certification. 98.93 %

* Note: The CAAC accepts and forwards complaints through channels. ① Note: China Southern Airlines pushes the satisfaction evaluation survey results. ② 70 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited Efficient and First-Class, Creating a Value Journey 71

Efficient and First-Class, Creating a Value Journey

China Southern Airlines continues to improve the legal and compliant operation and management, setting a firm foundation for development, deepen reform and innovation and implement strategic cooperation between all parties to ensure the stable and healthy development of the Company and comprehensively enhance the Company's market competitiveness. 72 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited EfficientEfficient and First-Class, and First-Class, Creating Creating a Value aJourney Value Journey 73

Business risks and countermeasures under the new situation Special plan Lean Cost Controls Comprehensive market accounting

Establish a cost control system and mechanism with China Southern Airlines' characteristics Market accounting is to carry out quantitative evaluation of the values created and implement it into the value statement which is conducive to In 2020, the sudden new COVID-19 In view of the many business risks under This is an urgent call to to achieve continual cost reductions and make steady improvements in operating efficiency. strengthening the input-output awareness, improving the efficiency of resource use and cultivating the management awareness of the whole staff. Sunshine in pneumonia pandemic has had the new COVID-19 environment, China deal with the impact of a profound impact on China’s Southern Airlines seized the development the pandemic and reduce the Heart economic and social development opportunity of five major structural the adverse effects. and ecological environmental adjustment and optimization using lean Mechanical Engineering Department Comprehensive Logistics Department Establish a market-based Constructing the internal market transaction logic Establish a unified value statement - Strength protection and triggered a long- cost controls and made comprehensive This is an urgent call accounting mechanism to enhance the core Promoting the implementation of cross- Find the paper for cleaning the front According to the Company's existing organizational structure and term challenge of resuming work and market-oriented accounting as competitiveness and departmental coordinated cost reduction windshield of the aircraft, which saves a lot of management mode and combined with the requirements of the large- with You! production and public crisis. Coupled breakthrough points. The Company has promote high-quality measures cost compared with importing from abroad in scale operation construction, China Southern Airlines initially explores with economic downturns and Sino- spared no effort to fight the main battle of development. the past. the construction of a comprehensive market-oriented accounting US trade frictions, the civil aviation its worldwide business and launched the Cabin Department transaction logic. industry, as an industry that greatly battle of high-quality development, and This is an urgent need Chongqing Airlines Adhere to impacted the tourism industry and walked out of a connotative and intensive Propose "frugal meals" for in-flight crews to market-oriented for the implementation "Three relations" the flow of people, continues to be high-quality development path. of institutional reform reduce food waste. Set up a column for lean control costs, set up business pricing special mailboxes for activities, and establish under tremendous operating pressure and the modernization of Grasp the relationship among company, marketing and freight The basic situation of occupation of Ground Service Department manuals to solidify results. Basic in such complicated domestic and governance system and logistics. the Company's personal, financial and governance capacity. situation international economic situations. Use the "main construction" function to carry stuff resources Dalian Branch out special activities. Steadily advance the paperless handover Value contribution Aviation Service Department project, reducing paper usage by 50%. points and Output Five major structural adjustment and optimization Reflect the value contribution points responsibility indicators Find out the Company's internal hotel …… Focusing on quality, efficiency and benefit, China Southern Airlines formulated five structural adjustment and optimization costs shall be Freight resources and attendance building resources, Company Marketing plans, established five leading groups, offices and five special working groups within the Company's structure to activate the clarified logistics establish a linkage mechanism, prioritize development momentum through reform. Investment internal resources, and save hotel procurement The total cost incurred costs. indicator

Focus on the short board with unreasonable Based on government policies, "An equation" market structure and low production and industrial environment and company Quantification investment and sort out the prominent spirit, China Southern Airlines will carry of value for "Value contribution = simulated revenue - responsibility cost". Key Reflect the efficiency and effectiveness problems in the current market structure out detailed programs contribution and As the main body of market operation, departments match indicators of value creation effectiveness the corresponding market pricing according to the key value Optimization of Optimization of contribution points to form simulated revenue and then take away market structure industrial structure the corresponding full cost investment to form value contribution. Pricing Reflect the pricing model and price indicators level of each value contribution point

Optimization of fleet Optimization of human Optimization of asset structure resource structure liability structure Encouraging collaboration work Value Benchmarking First Class Optimize the business structure, Analyze the current pricing contribution enterprises, analyzing fleet promote the plate, optimize the situation of the Company's Simulated Responsibility management status and organization. Scientifically formulate assets and liabilities and revenue cost challenges employment plan, optimize find out the pain points of personnel allocation and revitalize assets and liabilities human resources 74 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited Efficient and First-Class, Creating a Value Journey 75

China Southern Airlines insists on managing the Company in The key to long-term development lies in reform and innovation. In 2020, China Southern Airlines closely conformed to the Compliance and Steady accordance with the law, operating in compliance, continuously Innovation, characteristics of the civil aviation transportation industry and the development needs of enterprises, moved towards the improving governance, reducing management costs, strictly controlling direction of high-quality development, strengthen overall planning and coordination, improved the ability to tackle key Flight Operations management risks, enhancing compliance management capabilities, Reform and challenges in reform, implemented the innovation driven development strategy, comprehensively improved the aviation ensuring stable operations and enhancing core competitiveness. Development service capacity and constantly moved forward to the goal of building a world-class air transportation enterprise.

Compliance Deepening Reform and Risk In 2020, China Southern Airlines Group implemented a three-year action plan for the reform of state- Management Case "Double Hundred Enterprises" mixed ownership Management Framework Risk Primary Coverage owned enterprises and continued to deepen reforms reform came to a successful conclusion Identification and by using the "Key Tasks and Decomposition Focusing on the goal of “improving Establish a comprehensive risk and internal Guarding against legal risks Guarantee operation and management Service Operation Management Plan for China Southern Airlines Group Reform in governance, operating compliance, control management committee, with the 2020" was able to clarify 16 key reform tasks. The The two “double-hundred enterprises” China management standards, and law- chairman of China Southern Airlines Group as Orderly implementation of contract Strengthen the tracking and control of In 2020, China Southern Airlines improved its operation “headquarters organization” special rectification Southern Airlines General Aviation Co., Ltd. abiding integrity”, China Southern the director, with members including senior management and service improvement; major business risk response; standards and flight operation manual of each specialty and was completed on schedule, the “Double Hundred (hereinafter referred to as China Southern Airlines is guided by value creation management. Supervision Risk Implement a pre audit system for major Strengthen the prevention and control completed the certification of the introduction and operation Action” was accelerated; a comprehensive market- to further improve the compliance and General Aviation) and China Southern Airlines Assessment business decisions; of contract risk during the pandemic of the new ARJ21-700 model; based accounting system was initially established management system and risk Improvement Cargo Logistics Co., Ltd. (hereinafter referred to China Southern Airlines does a very good Improve the manual management period, and The Company obtained the operation qualification of new and marketing reforms continued to deepen. The prevention and control system as China Southern Logistics) have all completed job in the annual risk tracking and monitoring system and manual system, and build a Strengthen the management of labor aircraft and routes and revised the specific operation terms; five major structural adjustments and optimizations construction and enhance the the mixed ownership reform. that formulates the Company's major business three-dimensional prevention and control legal relations during the pandemic Implemented operation safety information and were launched, and the system and mechanisms Company's compliance management risk information report management measures, system; period. requirements and operation quality control, and restricting development were gradually solved and Based upon major national strategies such as and risk control management process control of major risks and the three lines Risk Perfect the management system of legal Used risk prevention techniques for the movement of the Company’s vibrant development continued on the Guangdong-Hong Kong-Macao Greater levels. In 2020, the Company's Control of defense for risk prevention and control and disputes and establish a timely reporting dangerous goods and professional efforts in the policy pace toward a vibrant post COVID-19 pandemic world. Bay Area and the construction of the Hainan major business decisions, rules and realize closed-loop management. system for major overseas legal cases. guarantee of anti-pandemic and dangerous goods Free Trade Port, China Southern General regulations and economic contract transportation. Aviation, China Southern further promotes review rate was 100%. the development of sea oil transportation and business flight industries; China Southern Logistics focuses on increasing air cargo capacity, building ground logistics infrastructure, and building an "integration Combating Issued the "Key Points of Party Work Style and Clean Take the implementation of a series of major Intellectual Property Protection of heaven and earth" air logistics industry Government Construction and Anti-Corruption Work decisions and arrangements made by the CPC system, so as to build a new service system Corruption - in 2020" to decompose tasks, clarify responsibilities, Central Committee on the overall planning of with domestic circulation as the main body Advocating determine timetables and construction drawings pandemic prevention and control and economic and China Southern Airlines attaches the greatest importance to the and domestic and international double and ensure solid progress in various tasks. social development as the top priority of political protection of it brand assets. In accordance with the "Trademark circulation mutual promotion. Integrity supervision and ensure the solid progress and high- Law of the People's Republic of China", "The Patent Law of the People's Performance contracts and appointment quality completion of key projects with effective Republic of China" and other laws and regulations, the "Intellectual agreements were signed with new managers, supervision. Property Management Manual", "Trademark Management Volume", China Southern Airlines has always which took the lead in realizing the tenure "Patent Management Volume" and "Brand Management Volume" have maintained the upright anti- system and contract management in China Start a centralized education program of discipline Company senior managers formulates the "Notice been formulated to standardize the management of the Company's corruption trend, adheres to the main Southern Airlines' second-tier units which with the theme of "strict discipline, abide by rules on the Disclosure of Letters and Visits and Reporting intellectual property and brand image of the largest airline of the tone of "strictness" and the strong allowed for the deepened the reform of and strong style", covering all Party members, cadres Methods"; unblock communication and reporting People’s Republic of China. In the aspect of trademark management determination of zero tolerance, system and mechanism. deepens the integration of "dare not and all staff. The Company compiled and distributed channels, and enhanced the transparency of letter system, the principles of trademark design, registration, use, to be corrupted, cannot be corrupted, education and learning materials and followed and visit reports; implemented the "Rules for management, authorization and protection as well as the specific Company senior managers created and and does not want to be corrupted" to typical cases of law and discipline violations. Discipline Inspection and Supervision Institutions operation methods and processes were clarified, the exclusive right delivered a comprehensive reform plan promote the system and mechanism This included warning education classes by case Handling Reports and Accusations" and other relevant and reputation of trademark were maintained, the value of state- that focuses on governance, employment and strive to create a clean and description for self-examination by comparison to regulations, strictly implement confidentiality owned intangible assets was maintained and increased, and the and incentives to become new vanguard of positive atmosphere. rectify challenges. requirements and resolutely investigated all brand value of China Southern Airlines was promoted. In 2020, the aviation reforms. interpersonal cases that impacted staff members. Company has had no trademark infringements. 76 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited Efficient and First-Class, Creating a Value Journey 77

Technological China Southern Airlines has vigorously pursuing an innovation-driven development strategy that accelerates the digital China Southern Airlines firmly believes that a sustainable supply chain can promote its own better operation and promote transformation and intelligent transformation, and building the "three nets" of consumer Internet, industrial Internet and Supplier the common growth of suppliers. In 2020, China Southern Airlines attached great importance to creating a fair, open and Innovation social Internet to maintain the vitality of the enterprise through innovation. just business environment, operating in good faith and compliance with customers and industrial partners for responsible Management procurement, guiding suppliers to fulfill their own Corporate Social Responsibilities and jointly build a healthy and transparent supplier cooperation relationship and working together with all partners to create a better future.

Improve the ability of Improve the innovation Promote digital innovation mechanism transformation

China Southern Airlines integrated China Southern Airlines engineers In 2020, China Southern Airlines China Southern Airlines attaches great importance to transparency, honesty and trustworthiness in business dealings with internal and external innovation worked in 2020 to improve the preliminarily built an IT architecture Standardized its partners, continuously strengthens standardized procurement management, identifies environmental and social risks in resources and elements which then airline innovation systems and of "cloud platform + dual middle Procurement each link of the supply chain, continuously strengthens management risk and integrity risk control in the procurement field, strengthens the joint innovation of operation mechanisms to enhance stations", strengthen the use of Management and regulates cooperation with suppliers from the aspects of operation, society and the environment. industry, university, research and the integrated allocation of projects, new technologies such as cloud application and actively took the lead in platforms and funding in key areas. computing, big data and artificial forming or participating in innovation The Company carried out "five small" intelligence and use digitalization consortia to improve innovation innovation of the whole staff and to ensure passenger safety, improve Sunshine procurement efficiency. Through its consistently promoted big changes with small operational efficiency, promote improving business models, product incision. By selecting innovative marketing services, promote "China Southern Airlines Procurement Bidding Website" is and service innovations, China leading talents, focusing on training green development and improve a new designated website for the disclosure and release Southern Airlines launched products digital talents, the power for management levels . of procurement information. In accordance with the to meet the personalized needs of innovation was gained. principles of openness, fairness and justice, China Southern staff which improving the quality of its Airlines senior managers actively visits, communicates aviation products. and coordinates, continuously improves processes and carries out standardized procurement to ensure that the procurement system is open, fair and transparent. China Southern Airlines continuously improves procurement supervision and supervision, carry out "sunshine procurement" integrity education activities, enhancing the awareness of integrity, risk awareness and standardization and ensure suppliers' right to know and equal participation.

Responsible procurement

China Southern Airlines regulates the cooperation with suppliers in terms of operation, society and environment, and jointly abide by laws and regulations and business ethics. Suppliers are required to give 100% attention to product safety, quality and occupational safety and health to ultimately ensure the implementation of safety from system to implementation to monitoring; fully grasping the environmental impact of their own business and supplier business. This level of transparency encourages all suppliers to carry out carbon inventory, create and deliver relevant emission reduction plans based on the results and improve the process to achieve energy conservation and emission reductions. 78 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited Efficient and First-Class, Creating a Value Journey 79

The "Supplier Management Measures" is an important management manual for the Company to carry out supplier Adhering to the concept of open Motivating management. In 2020, China Southern Airlines continued to promote the establishment of a supplier management system, sharing and win-win cooperation, China Strengthen Case Becoming a strategic partner of the "First Suppliers to standardize management procedures, clarify management requirements for supplier warehousing, hierarchical use, Southern Airlines, together with the Exchanges National Skills Competition" Fulfill their evaluation and rating, prevent supply chain risks and creating a stable and efficient supply chain within a benign supplier government, universities and industry ecosystem. and partners, constantly strengthens Responsibilities exchanges and cooperation in the fields From December 10 to 13 in 2020, the first national Cooperation of talents, technology and services, skills competition was held in Guangzhou. As the only Suppliers enter a directory Supplier performance evaluation. Supplier hierarchical management. strengthens strategic cooperation, transport enterprise among the strategic partners of management and establish and Focusing on the dimensions of Combined with supplier stimulates the power and vitality of the competition, China Southern Airlines provided improves the entry standard of each "business, technology, delivery, complaints, reward and punishment sustainable development and jointly high-quality air transport support services for the category of suppliers. This realizes quality and service", the dynamic management, bad behavior supplier promotes the sustainable development competition, and launched theme flights on 23 flights of the closed-loop management of assessment and evaluation of the management and supplier activity of aviation industry chain, ecological 16 routes to Guangdong, creating a strong atmosphere product quality through the three contract, acceptance, payment and performance management, the chain and value chain. for the competition. At the same time, with the theme acceptance links of factory inspection, after-sales implementation stages suppliers are classified into excellent of "sunshine China Southern Airlines dream to set sail, optimization and improvement and are carried out for the contracted suppliers, qualified suppliers, technology to connect the world", three exhibition delivery and commissioning, and suppliers, so as to improve the registered suppliers and prohibited booths of "skills China Southern Airlines", "food fashion evaluate the suppliers according to "quality archives" of the suppliers. trading enterprise name list to China Southern Airlines" and "image of China Southern the acceptance data. improve the cooperation among Airlines" were set up to show the corporate culture of excellent suppliers. sunshine China Southern Airlines and the service concept of "affinity and refinement". China Southern Airlines senior managers used the competition as an opportunity to strengthen the training of skilled talents, explore and South Central China North China Hong Kong, Macao and Taiwan build the training system of technical skilled talents, innovative and entrepreneurial talents needed to support the development of civil aviation transportation industry, 6,900 2,288 12 Case Actively participate in the third China International Import Expo such as flight, maintenance, aviation, crew, air security and ground services to promote the development of aviation industry. Northeast China Northwest China Other regions From November 4 to 10 in 2020, the third China International Import Expo was held at the National Convention and Exhibition Center in Shanghai. The China Southern Airlines Group signed agreements with 14 world- Total Number of Suppliers 1,596 834 136 class manufacturers in the global aviation service field. As a "core support enterprise" and "designated air carrier", China Southern Airlines has set up a service support group to ensure that the participants and goods are in 14,431 East China Southwest China place with affinity and refinement service. The Company jointly launched the " Import Expo " painted aircraft to carry out theme flight activities 1,926 739 at an altitude of 10,000 meters, so as to enhance the global influence of Import Expo.

China Southern Airlines has built an efficient and smooth quality feedback and supplier communication mechanism, Grow with strengthened supplier relationship management, and worked with suppliers to grow together. It has unblocked channels suppliers for project performance, product quality, and service complaints, carried out "Supplier Exchange Day" and other themed activities, listened to supplier information feedback, communicated face-to-face to answer supplier confusion, and strengthened suppliers’ understanding of quality control and supplier management requirements, working with the supply chain to provide better services for China Southern Airlines' ecosystem construction, passengers and other related parties, and promote the company's high-quality development. 80 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited Side by Side, Sharing a Harmonious Journey 81

China Southern Airlines has always believed in a "people- oriented" philosophy, committed to providing employees with a fair working environment and brilliant professional life … actively assuming the social responsibility of a market-leading central enterprise, sharing the fruits of corporate development with the society, and promoting harmonious social development.

Side by Side, Sharing a Harmonious Journey 82 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited Side by Side, Sharing a Harmonious Journey 83

Employees are the cornerstone of all state-owned enterprises and China Southern Airlines attaches great importance to Employee labor contract Number of new The proportion of middle-level Helping the value of enterprise talents. On the basis of protecting the basic rights and interests of employees, it builds a broad signing rate employees recruited and above female managers development platform for employees, helps them realize their career dreams, cares about their work and life, builds a Employees harmonious labor relationship and promotes the common growth of employees and enterprises. Salary and benefits 100 % 4,521 0.92 % China Southern Airlines is a reputable national Grow and international employer as the Company adheres to equal pay and equal benefits for equal work. This established salary system to provide competitive salaries. In addition to national legal China Southern Airlines strictly complies with the "Labor Law", "Trade Union Law", "Labor Contract Law" and other laws and Employee social security Number of foreign holidays, employees can also enjoy paid annual Employee Rights regulations, signs labor contracts in accordance with the law, respects the diversity of employees and resolutely eliminates coverage employees leave; family visit leave; marriage leave and discrimination against employees due to factors such as age, gender, religious belief, ethnicity and educational background. and Interests birthday leave while female employees can enjoy There were no forced labor, harassment or abuse or child labor incidents in 2020. 100 838 pregnancy leave; maternity leave and lactation % leave time periods. The Company provides free annual physical examinations. The "double hundred enterprises" China Southern Airlines and China Southern Airlines logistics simultaneously carry out an employee stock ownership plan and established a medium and long-term incentive mechanism of risk sharing and benefit sharing.

Give full play to the role of democratic management China Southern Airlines follows democratic By type of By Gender By Region By age management and requires employees to sign Employment a "collective contract" in accordance with Total number of Employees the law to protect the rights and interests of employees. This allows for the implementation of the requirements of the "Guiding Opinions 100,431 of the State-owned Assets Supervision and Administration Commission and State- owned Assets Supervision and Administration Commission on Establishing and Improving the System of Workers' Congress of Central Female Flight Guangzhou Under 30 years old Enterprises". This allows for the improvement of 52,883 10,827 25,215 43,831 the Company’s democratic management system, Male Service Domestic (except Guangzhou) 31-40 years old safeguard the legitimate rights and interests of 47,548 38,004 74,219 32,149 employees, promote harmonious labor relations Administration International Employees aged 41-50 3,221 997 19,079 and continues to do a good job in the collection Navigational matters 51 years old and above and handling of proposals to play a positive role 2,479 5,372 in stabilizing the airline’s workforce. Maintenance 16,295 Information Deal with violations 1,860 The Company established a human resources Marketing 14,093 evaluation system, conducting a comprehensive Comprehensive inspection and evaluation of human resources 6,740 work on a regular basis and investigate and Function manage human resource problems. 6,912 84 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited Side by Side, Sharing a Harmonious Journey 85

China Southern Airlines attaches great importance to the development and training of employees, provides a variety of Staff training courses, promotes the systematic and standardized development of training, and helps employees continue to Development learn and grow. Actively respond to the impact of the pandemic, vigorously promote online education and training, build cadre education and training curriculum system, and provide sufficient talent guarantee for the safe and efficient operation of the Company.

Training projects were carried out Number of Trained Employees (person) Average Training Time of Employees (hour)

Ttotal Case The first online language teachers' ability 68,630 128.25 14,507 Staff Training improvement class Female with By Gender 30,233 128.74 Male In April 2020, China Southern Airlines held a 38,397 128.81 language teachers' ability enhancement retraining 653,300 High level class, which is the first time to implement the 600 45.61 participants training in the form of full-time online live broadcast. of which online training projects By Employee Type Middle level A total of 46 full-time and part-time language 5,220 93.06 accounted for Carrying out various trainings teachers participated in the training. The training Basic level 62,810 132.54 course includes the English proficiency test for crew 23.74 post, the teaching methods of oral English, reading % and listening, and the construction of English test and the number of participants database for crew recruitment. Online training not accounted for only saves hours of manpower costs and material resources but also allows students to look back at learning at any time, which opens up training ideas 39.93 % and improves training efficiency.

Carrying out Leadership Training Crew Training Language Training various trainings Six training sessions of "start More than 1,250 on-the-job More than 22 training sessions flight" and "three promotion" training for crew members with of Youth English and Security projects for young cadres were 39,718 person times and 1,066 English were held with 781 held, with 200 participants. flight attendants. participants.

Business Training Language Testing and Skills Appraisal Online Training Held initial training courses for civil aircraft Training Some 3,280 new online courses were incident investigators, training courses for More than 544 English tests for flight added with 3.87 million on-line computer safety inspectors, training courses for micro attendants; 7,247 person times; 42 visits and 12.59 million visits from mobile class development, online training courses language level tests for flight attendants; users. for commentators of China Southern 2,784 person times; 1,618 theoretical Airlines development history museum and training for flight attendants and security completed 15 training sessions with 532 inspection skills appraisals. person times. 86 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited Side by Side, Sharing a Harmonious Journey 87

Employee Care China Southern Airlines organizes various staff activities to balance the work and life of employees, care for female China Southern Airlines is committed to building a harmonious and shared society, continuously enhancing its sense of employees and deliver the passion of China Southern Airlines to every employee. Contributing responsibility and mission to contribute to society; taking advantage of its business advantages to actively complete various special missions; actively participating in public welfare and charity and continuously satisfying the people's needs for a to the better life. Harmonious Balance work and life Society

China Southern Airlines organizes "Health Civil aviation is an key element of the social public service system and emergency rescue system and an important force in Cloud Sports" employee fitness check-in Special Flight the implementation of military, emergency, rescue, disaster relief and other transportation tasks. As China’s largest airline, it activities, essay activities, poetry recitation Mission is China Southern Airlines' responsibility to serve the national strategy and successfully complete special missions. competitions and other activities to effectively help employees relieve stress and better engage in work.

Case Carrying out the earthquake relief task in Jiashi, Xinjiang Caring for female Help difficult employees On January 19, 2020, a magnitude 6.4 earthquake slammed Jiashi employees County, Kashgar Prefecture, Xinjiang. That evening, China Southern China Southern Airlines agrees to the "Special Airlines’ Xinjiang Branch received an urgent call for emergency flight Collective Contract for the Protection of the China Southern Airlines retains files on transportation and sent Urumqi rescue and command personnel to Rights and Interests of Female Workers" in employees in need and grants aid to Kashgar Airport. The Xinjiang Branch immediately started an emergency accordance with the law and adhere to the distressed employees and families. The aircraft response for earthquake relief, coordinated available aircraft, crew principle of equality between men and women Company continues to be very generous and ground support personnel and completed the passenger boarding in in employment, assessment, promotion, and by arranging for mutual aid funds for less than two hours as rescue personnel were rushed to Kashi Airport. enjoyment of welfare benefits. The Company employees and their families suffering organizes female employees' rights protection from major illnesses. In 2020, a total of activities month to protect the legal rights and 495,000 yuan was provided for 12 families special interests of female employees. Improve being challenged with labor difficulties, the construction of the "Caring Mother Hut" to 54 ill female employees applied for civil provide a private and clean rest place for female aviation mutual aid of 640,000 yuan and workers during pregnancy and childbirth. China 302 severely ill employees and family Southern Airlines also carries out a "special members applied for 1,926,400 yuan of survey to help support employees to balance mutual aid subsidies from China Southern work and family responsibilities" to support Airlines. female employees in balancing family and work. Improve employee happiness

China Southern Airlines launched a new "Employee Service Day" to address daily travel, finance and shopping needs of employees which strives to offer support for employees in terms of household registration, social security administration and children's enrollment. The Company has also improved the design and fabrics used in official China Southern Airlines branded luggage, leather shoes and clothing worn by all flight crew. Rescue Charter Aircraft at the Ready 88 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited Side by Side, Sharing a Harmonious Journey 89

China Southern Airlines is committed to building a harmonious society by actively participating in community charity For years, China Southern Airlines has diligently build up a substantial international route network and abides by local laws Charity activities, giving back to the society and showing the responsibility of a state-owned enterprise with practical actions. Performing and regulations … showing respect of varied cultural customs and is actively engaged with local communities. Responsibilities Overseas

Case "Dream house" gives children wings of dreams

For some time, China Southern Airlines assist public welfare projects like the public welfare project, called the "dream building The Company works to improve its library". The Company staff arranged for books, stationery and international routes schedule and sporting goods to be delivered to schools and students in remote actively implements the "Belt and areas. These actions helped establish a library and supported Road Initiative” by optimizing the education which cultivates students' good reading habits … giving regional aviation network of South The Company continues to deepen its exchanges them “wings of dreams”. Asia, Southeast Asia, South Pacific, and cooperation with numerous nations and Central and West Asia. China Southern international organizations, actively participating Airlines currently operates 172 routes in international activities such as the Third Japan in the countries and regions along the International Route Promotion Forum, and "Belt and Road"; carrying more than for nine consecutive years has sponsored the 15 million passengers each year, the Sydney municipal government's "Sydney Cultural airline has become a main economic Festival". These and many other sponsored roles force of aviation interconnection work to enhance the international brand image between China and the countries or of China Southern Airlines and accelerate its regions along the “Belt and Road”. internationalization programs.

China Southern Airlines fully supports the global fight against the COVID-19 pandemic and in 2020 donated pandemic prevention materials to support its many airline partners. The Company donated more than 310,000 pieces of anti-pandemic materials such as masks and gloves to international partners such as IATA, Korean Air, Qatar Airways, KLM and Finnair … and sent letters of condolences to 40 international partners to convey China's confidence and strength in overcoming this global scourge. As a member of the IATA Council, the Company introduced Happy Student Receiving Stationery China's pandemic prevention and control measures to the global aviation industry; produced an English version of the "China Southern Airlines Flight Guarantee Guidelines during the New Crown Pneumonia Pandemic" and video operation guides, and shared the practical experience of China Southern Airlines' flight protection during the pandemic.

China Southern Airlines insists on running an enterprise with an open attitude. On April 22, 2020, it carried out the "Social Responsibility Day" theme activities, inviting stakeholders to enter China Southern Airlines, get to know China Southern Airlines, and understand China Southern Airlines, so as to enhance trust and Donating Surgical Masks to Korean Air develop together with all sectors of society. 90 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited Appendix to the Report 91

Looking into the Future

2021 marks the first year of the "14th safety risks, continuously improve the operational services of its new and effective connection of rural Five-Year Plan". China Southern safety quality and ensuring the safety and expanding flight operations at revitalization. China Southern Airlines Airlines will continue to adhere to the of all passengers. The Company the new Beijing Daxing International has substantial relationships with guidance of Xi Jinping Thought on will continue to strengthen the Airport. This calls for the Company all of China’s domestic airlines and Socialism with Chinese Characteristics occupational health and safety staff to focusing on core aviation numerous international airlines and in the New Era and serve the national management of all employees, senior resources and main business is a pioneer in the interconnection of strategy and national economy and managers, pilots and flight crews advantages and accelerating the the “Belt and Road Initiative” and is a people’s livelihood; actively practice as it investigates potential risks as construction of China Southern leader in a new development pattern Corporate Social Responsibilities by well as coordinating the prevention Airlines’ ecosystem and embarking on of services. enhancing the Company’s market- and management of the COVID-19 a path of high-quality development leading role as not only the largest pandemic situation. with China Southern’s characteristics. In 2021, China Southern Airlines is airline of China but of greater Asia … pledged to adhering to the guidance to achieve global competition and China Southern Airlines is also The Company is pledged to pay of Xi Jinping Thought on Socialism in the process, is being transformed committed to a friendly relationship close attention to the normalized with Chinese Characteristics for a into a world-class air transportation with the environment and the world prevention and management of New Era, implement the overall idea company. around us all as it implements the the COVID-19 pandemic, and work of high-quality development and national green development concept, with people all over the world to working with stakeholders towards a As a key state-owned enterprise, advocates green flight as it continues win the battle against this dreaded vibrant, post-pandemic future. China Southern Airlines adheres to improve the efficient use of jet virus. Concurrently, China Southern to Party building to lead the fuel use, reducing greenhouse gas Airlines has in-depth experiences in development of enterprises; following emissions as the airline increases poverty alleviation and makes bold the wise guidance of the party's pollution reductions and makes major new steps in the consolidation and leadership and strengthening the contribution to achieving the goals of expansion of poverty alleviation party's construction are the heart carbon neutrality. and soul of state-owned enterprises. China Southern Airlines will resolutely The Company is pressing ahead with implement the decision-making its “Integrated Service Initiative” as it and deployment of the Party Central strives to build a world-class service Committee; continuously deepen brand with China Southern Airlines the integration of Party construction characteristics. Upholding its mantra into enterprise governance; lead of “affinity and refinement”, the high-quality development with Company has made great strides in high-quality party construction, and providing additional training and celebrate the 100th Anniversary of professional assessment of its flight Party construction with excellent crews and ground staff to enhance development performance. their international standards and provide the best service to our China Southern Airlines insists customers. that flight safety is the lifeline of development and implement China Southern makes every effort to the strategic policy of "safety increase its internal reform efforts to first"; continuously promote the stimulate the vitality of its enterprise construction of seven safety systems, … this allows for optimizing the focusing on preventing and resolving airline route network and improve 92 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited Appendix to the Report 93

List of Policies and Regulations ESG indicators Internal Policies Relative Law and Regulations

Special collective contract for the protection of the rights and interests of female workers. Measures for the management of interns. Labor laws of the People's Republic of China; Regulations on the administration of honors and commendations. Regulations on Prohibition of child labor; B4 Regulations on the management of punishment for violation of Laws of the People's Republic of China on the protection of minors, ESG indicators Internal Policies Relative Law and Regulations Labor Code discipline and rules by employees. and Management measures for employee sick leave. Trade union laws of the People's Republic of China Management measures for employees' holidays. Management measures for verification of the annual carbon emission A1 Measures for management of staff waiting for work. data monitoring report of China Southern Airlines flight activities. Emissions Measures for the administration of internal talent markets. Notice on the requirements of pollution prevention and control.

"Supplier Management Measures". A2 Management manual of energy conservation and emission reductions. "Administrative Measures for Bidding Monitoring Audiovisual Materials". Resource usage Energy and environmental management business process. "Procurement Management Manual" "Laws of the People's Republic of China on Tendering and Bidding"; Interim measures for monitoring, reporting and verification of carbon B5 "Implementation Rules for the Confidentiality of Procurement "Regulations on the Implementation of the Bidding and Bidding Laws A3 Supply Chain Information". of the People's Republic of China", and Guiding opinions on comprehensively strengthening ecological dioxide emissions from civil aviation flight activities of CAAC Environment and Management "Employee Integrity Practice Regulations". "The Government Procurement Laws of the People's Republic of environment protection. Law of the People's Republic of China on the prevention and control Natural Resources of water pollution. "Procurement Management Department (Import and Export Trading China" Following the laws of the People's Republic of China on the Company) Manual". prevention and control of environmental pollution by solid wastes. "Supplier Code of Conduct". Notice on charging management of new energy vehicles. Conducting a three-year action plan for winning the blue-sky battle Emergency response plan for new energy vehicle incidents. and notice on completing the work related to winning the blue-sky Safety Audit Manual. Notice on further control of APU usage time. defense war by civil aviation. Notice on promoting the implementation of optimization and support Regulations on the administration of dishonesty. work flow of ground power supply and air conditioning equipment. Regulations on supervision and management of cockpit voice A4 recordings. Notice on managing aviation fuel use efficiency in flight systems in "Civil Aviation Law of the People's Republic of China". Climate Change Regulations on the administration on no smoking aboard all aircraft. 2020. B6 "Large aircraft public air transport carrier operation certification rules", Flight technology management manual Notice on the issuance of aviation fuel utilization efficiency in flight Product Responsibility and Pilot training program. systems during the first half of 2020. "Civil Aircraft Pilot Certification Rules" Notice on Further Strengthening the work of winning the blue sky Operation manuals. defense war. Aviation health management manual. Aircraft public health manual. Emergency control plan for public health emergencies. Follows all labor laws of the People's Republic of China. Regulations on labor contract management. B1 Follows all labor contract laws of the People's Republic of China. Regulations on the administration of labor dispatch. Employment Regulations on the implementation of labor law of the People's "China Southern Airlines Opinions on establishing and promoting Regulations on management of part time employment. Republic of China. system mechanisms that “dare not, cannot, or do not want to be corrupt". Regulations on regulating leading cadres of China Southern Airlines. "Criminal Laws of the People's Republic of China". Follows all labor laws of the People's Republic of China. Working group in handling wedding and funeral celebrations. "Company Laws of the People's Republic of China". Follows all laws of the People's Republic of China on prevention and General emergency management plan of China Southern Airlines. Measures for the management of honest and clean government "Anti-Money Laundering Laws of the People's Republic of China"; "The control of occupational diseases as well as Civil Aviation laws of the Guiding opinions on style construction of safety practitioners of China B7 archives of leading cadres of China Southern Airlines Group. People's Republic of China Anti-Unfair Competition Laws"; B2 People's Republic of China; Southern Airlines. Anti-Corruption Notice on the publication of complaint reporting methods. "Interim Provisions on the Prohibition of Commercial Bribery"; "Anti- Health and Safety Production safety laws of the People's Republic of China; Standard code of conduct for pilots of China Southern Airlines (flight Key points of building a clean and honest government and anti- Monopoly Laws of the People's Republic of China", "Bidding Laws of Emergency response laws of the People's Republic of China; operation). corruption work in 2020. the People's Republic of China", and "Supervision Laws of the People's Anti-Terrorism laws of the People's Republic of China, and fire 2020 group's plan for building a clean government and anti-corruption Republic of China" protection laws of the People's Republic of China. work system. Working rules for disciplinary inspection and supervision institutions to handle complaints. B3 Development and China Southern Airlines Training Master Plan (2018-2025). Ttraining Opinions on volunteer service of China Southern Airlines. Notice on the B8 establishment of the Steering Committee for voluntary service of China Community Southern Airlines Group. Guidelines of China Southern Airlines Group The Charity Law of the People's Republic of China. Investment System on orderly participation of volunteer service team in COVID-19 pandemic prevention. 94 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited Appendix to the Report 95

Performance Data

ESG indicator Unit 2018 2019 2020 ESG indicator Unit 2018 2019 2020

A. A1. Emission Total water consumption 10,000 tons 764.75 696.65 612.20 Environment A2.2 10,000 tons of CO Water consumption intensity m3/ 10,000 yuan 0.5946 0.4514 0 .6585 Carbon dioxide emissions 2 2,690.14 2,836.03 1,931.80 equivalent A1.2 B1. Number of Employees: by gender, type of employment, age group and region Carbon dioxide emissions per ton kilometer ton / 10,000 ton km 8.88 8.69 9.29 B. Society B1.1 Number of employees person 100,831 103,876 100,431 A1.3 Hazardous waste (maintenance) ton 490.559 615.205 471.508 Male person 41,286 60,882 52,883 3 A1.4 Non-hazardous waste (onboard service) m 6,597.0 7,909.5 8,896.0 Gender Female person 59,545 42,994 47,548 Waste gas treatment (maintenance) 10,000m3 27,840 22,560 28,800 Guangzhou person 25,008 25,979 25,215 Industrial wastewater treatment (maintenance) ton 7,749.4 16,477.0 11,025.9 Region Domestic (except Guangzhou) person 73,789 76,588 74,219 Production wastewater treatment (aviation food) ton 21.6 22.4 8.6 A1.6 International person 2,034 1,309 997 Production wastewater treatment rate (aviation food) % 100 100 100 Postgraduate and above person 4,061 4,404 4,399 Hazardous waste treatment rate (maintenance) % 100 100 100

Undergraduate person 44,887 50,660 51,494 Harmless waste disposal rate (onboard service) % 100 100 100 Education Junior college person 32,248 31,194 29,780 A2. Resource Consumption

High school and below person 19,635 17,618 14,758 Aviation fuel consumption 10,000 tons 854.01 900.33 613.27

Under 30 person 49,304 49,954 43,831 Fuel consumption per ton kilometer ton / 10,000 ton km 2.82 2.76 2.95

31-40 years old person 29,127 30,986 32,149 Gasoline ton 5,012.95 4,869.11 3,922.78 Age 41-50 years old person 17,789 18,033 19,079 Diesel oil ton 10,199.24 8,598.59 7,282.09 A2.1 51 years old and above person 4,611 4,903 4,725 Coal ton 2,100 550.00 0

Electric 10,000 kWh 27,425.90 28,190.80 27,873.09

Natural gas 10,000 m3 3,215.06 2,537.49 965.80

Liquid gas ton 258.52 195.14 167.17 96 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited Appendix to the Report 97

ESG indicator Unit 2018 2019 2020 ESG indicator Unit 2018 2019 2020

B2. Health and Safety Northwest China company 714 861 834 B. B. Society Society Work related deaths person 1 1 1 Southwest China company 303 742 739 B2.1 Proportion of employees died at work % 0.0010 0.0010 0.0010 Non-Mainland China company 472 3,490 148

B2.2 Working hours lost due to work working day 14,485 17,508 12,242 B6 Product Responsibility

B3 Development and training Number of complaints received about products and services B6.2 Proportion of trainees: by gender Complaint rate ‰ 0.2465 0.3071 0.1320 Total number of trainees person 63,665 68,630 - B3.1 B7 Anti-Corruption Male person 35,049 38,397 - Number of corruption lawsuits

Female person 28,616 30,233 B7.1 - Litigation cases involving corruption, bribery, case 0 0 0 extortion, fraud and money laundering Average training hours of employees: by gender

B8 Community Investments Average training hours of employees hour 134.36 128.25 - B3.2 Resources used in the focus area Male hour 153.55 128.81 - Dispatch poverty relief cadres person time 63 77 83 Female hour 103.39 128.74 - Investment in poverty alleviation funds ten thousand yuan 2,189 3,593 4,462 B5 Supply Chain Management

Help file and register the number of poor people out Number of suppliers: by region person 234 3,045 6,063 of poverty B8.2 Total number of suppliers company 7,250 13,479 14,431 Number of volunteers person time 3,500 15,000 - South Central China company 2,927 4,473 6,900 Volunteer time ten thousand hours 3.6 1.5 B5.1 - Northeast China company 763 1,260 1,596 Perform important charter flights class 53 54 321

East China company 1,197 1,323 1,926 Transport personnel for important charter flights person time 7,984 4,915 42,705

North China company 874 1,330 2,288 98 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited Appendix to the Report 99

Index of Indicators

ESG Index Main Category Content location Main Category Content location

General Identify and respond to policies on mitigation measures related to major climate related Information on exhaust and greenhouse gas emissions, pollution to water and land, P34-35、P52-53 A. General Disclosure issues that have and may have an impact on the issuer Environment generation of hazardous and non-hazardous wastes: (a) policies; and (b) compliance with P50、P55-56 Level A4: Disclosure relevant laws and regulations that have a significant impact on the issuer Climate Change Describe the major climate related issues that have and may have an impact on the A4.1 P34-35、P52-53 issuer and the actions to be taken to deal with them A1.1 Emission types and relevant emission data P50-51、P55-56

B. Information on: (1) policies on remuneration and dismissal, recruitment and promotion,

Direct (range 1) and energy indirect (range 2) total greenhouse gas emissions (in tons) Employment and Labor Practices Society A1.2 P50 General working hours, holidays, equal opportunities, diversification, anti-discrimination and and (if applicable) density (in units of production, per facility) P82-83、P92 Disclosure other treatment and benefits; and (2) compliance with relevant laws and regulations that have a significant impact on the issuer Total amount of hazardous waste generated (in tons) and (if applicable) density (in units Level B1: A1.3 P55 Level A1 of production and facilities) Employment B1.1 Total number of employees by gender, type of employment, age group and region P82-83 Emissions： Total amount of harmless waste generated (in tons) and (if applicable) density (in units of A1.4 P56 Not disclosed yet, China Southern Airlines production and facilities) B1.2 Turnover rate by gender, age group and region is carrying out relevant data statistics

Emission targets have not been disclosed; Information on: (1) policies for providing a safe working environment and protecting A1.5 Describe the emission targets set and the steps taken to achieve them China Southern Airlines is making General employees from occupational hazards; and (2) compliance with relevant laws and P47、P92 relevant plans Disclosure regulations that have a significant impact on the issuer

Waste reduction target has not been Describe the methods for handling hazardous and non-hazardous wastes and the waste Level B2: B2.1 Number and rate of deaths due to work P47 disclosed; China Southern Airlines is Health and A1.6 reduction goals set and the steps taken to achieve these goals making relevant plans Safety B2.2 Number of working days lost due to work injury P47 General Policies for the efficient use of resources (including energy, water and other raw P54 Describe the occupational health and safety measures adopted, as well as relevant Disclosure materials) B2.3 P47 implementation and monitoring measures Total direct and / or indirect energy consumption (i.e. electricity, gas or oil) and density (i.e. A2.1 P51 per unit of production, per facility) by type General Policies on improving employees' knowledge and skills in performing their duties. P84-85、P92 Disclosure Describe training activities A2.2 Total water consumption and density (i.e. per unit of production, per facility) P51 Level B3: Development Percentage of trainees by gender and type of employees (i.e. senior management, Level A2: B3.1 P84 and Training middle management) Resource The target has not been disclosed; China Consumption A2.3 Describe the energy efficiency goals set and the steps taken to achieve them Southern Airlines is making relevant plans B3.2 Average number of training hours per employee by gender and type of employee P84

Describe any issues that may arise in obtaining the applicable water sources, the water General Information on: (1) policies to prevent child labor or forced labor; and (2) compliance A2.4 P54 P82、P92 use efficiency objectives set and the steps taken to achieve these objectives Disclosure with relevant laws and regulations that have a significant impact on the issuer Level B4: Labor The total amount of packaging materials used in the finished product (in tons) and, if Standards B4.1 Describe measures to review recruitment practices to avoid child labor and forced labor P82 A2.5 Not applicable applicable, the percentage per production unit B4.2 Describe the steps taken to eliminate violations when they are identified P83 General Policies to reduce the significant impact of Issuers on the environment and natural P34-37、P50、P52-57 Level A3: Disclosure resources Environment and Natural Describe the significant impacts of business activities on the environment and natural Resources A3.1 P34-37、P54-56 resources and actions taken to manage the impacts 100 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited Appendix to the Report 101

Main Category Content location GRI Standards Index

General B. Environmental and social risk policy of supply chain management P93 oit Business Practice Society Disclosure

B5.1 Number of suppliers by region P78 Table of Content GRI Standards

Level B5: Describe the practice of employing suppliers, the number of suppliers to whom the Letter from the Chairman 102-14 102-15 B5.2 P77-78 、 Supply Chain practice is implemented, and the implementation and monitoring methods of the practice 102-1 102-2 102-3 102-4 102-5 102-6 102-7 102-16 102-17 102-18 102- Management About China Southern Airlines 22 103-2、 205-2、 205-3、 417-1、 417-2、 、 、 、 、 、 Describe the management, implementation and monitoring methods for identifying B5.3 P77、P93 、 、 、 、 、 environmental and social risks in each link of the supply chain 102-20 102-21 102-29 102-31 102-32 102-33 102-34 102-40 102-42 102-44 Social Responsibility Management 102-47、103-2 、205-2 205-3、 、 、 、 、 、 、 、 Describe the practices for promoting the use of environmentally friendly products and services 、 、 、 B5.4 P77、P93 when selecting suppliers, as well as the relevant implementation and monitoring methods Focus on 2020 103-2 203-1 413-1 415-1 、 、 、 Information on the health and safety, advertising, labeling and privacy of the products Value Creation in the 13th Five-Year Plan —— General and services provided and remedies: (1) policies; and (2) compliance with relevant laws P40、P42-43、P69 Disclosure and regulations that have a significant impact on the issuer Safety management 103-2

Percentage of the total number of products sold or delivered that need to be recovered Aviation safety 103-2 416-2 B6.1 Not applicable Safe and Happy, Guarding the 、 for safety and health reasons Journey at Ease Passenger safety 103-2 416-1 Level B6: 、 B6.2 Number of complaints about products and services received and how to deal with them P69 Product Occupational health and safety 403-2 Responsibility B6.3 Describe practices related to the maintenance and protection of intellectual property rights P74 Environmental management 103-2 302-1 302-3 302-4 305-4 、 、 、 、 Describe the quality verification process and product recovery procedure Not applicable Tackling climate change 103-2 302-3 302-4 302-5 B6.4 Green Environmental Protection, 、 、 、 Starting a Low Carbon Journey Green operation 301-1 301-3 303-3 306-1 306-2 Describe the consumer data protection and privacy policy, as well as the relevant P69 、 、 、 、 implementation and monitoring methods B6.5 Advocate green environmental protection —— General Information on: (1) policies to prevent bribery, extortion, fraud and money laundering; and P74、P93 Passenger Service 103-2 Disclosure (2) compliance with relevant laws and regulations that have a significant impact on issuers Affinity and Refinement, Creating a Warm Journey Freight Service Number and outcome of corruption lawsuits brought and concluded against the issuer Together —— B7.1 P74、P97 Level B7: Anti- or its employees during the reporting period Customer relationship maintenance 418-1 Corruption Describe preventive measures and reporting procedures, as well as relevant Compliant and stable operation 102-30 103-2 205-2 205-3 206-1 B7.2 P74 、 、 、 、 implementation and monitoring methods Innovation, reform and development Efficient and First-class, Creating —— B7.3 Describe the anti-corruption training provided to directors and employees P74 a Value Journey Supplier Management 102-9 103-2 414-1 414-2 、 、 、 Policy on community involvement to understand the needs of the communities in which General Strengthen exchanges and cooperation they operate and to ensure that the interests of the communities are taken into account in P26、P93 Disclosure —— their business activities Level B8: Help employees grow 103-2 401-1 401-2 401-3 405-1 406-1 103-2 404-1 404-2 Community Side by Side, Sharing a 、 、 、 、 、 、 、 、 Harmonious Journey Investments B8.1 Focus on areas of contribution (i.e. education, environmental issues, labor needs, health, culture, sports) P16-21、P26-31、P87-89 Contribute to a harmonious society 203-1、103-2、413-1 B8.2 Resources (such as money or time) used in the area of focus P16、P26-31、P87-89 ESG Index Appendix to the Report —— GRI Standards Index 102-55 102 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited Appendix to the Report 103

Third-Party

Authentication Assurance Statement of Corporate Social Responsibility Report  Accuracy It was discovered through sampling review that the cases and data disclosed in the Report were basically objective and accurate; TUV NORD (Hangzhou) Co. Ltd. (‘TUV NORD’) has been commissioned by the management of China Southern Airlines  Company Limited (‘CHINA SOUTHERN AIRLINES ‘ for short) to carry out an independent assurance of the 2020 Timeliness Corporate Social Responsibility Report (‘report’ for short）. The social responsibility performance of 2020 was disclosed in the Report, demonstrating strong timeliness, allowing stakeholders to obtain information in a timely manner and make reasonable decisions: CHINA SOUTHERN AIRLINES is responsible for the collection, analysis, aggregation and presentation of information  Explicitness within the Report. TUV NORD’s responsibility in performing this work (assurance of the report) is in accordance with terms of reference agreed in the scope of engagement with CHINA SOUTHERN AIRLINES. CHINA SOUTHERN AIRLINES is the Pictures, graphics and data sheets were used in the Report, making the information in the Report comprehensible. And indicator benchmarking tables were used, facilitating the stakeholders to find desired specific information: intended users of this statement.  Reliability This statement is based on the assumption that the data and information provided in the report is complete and true. The Office of CHINA SOUTHERN AIRLINES is responsible for the collection, recording, arrangement and analysis of

the information and processes used for preparing the Report to make it verifiable, ensuring the quality and Assurance Scope substantiality of the information to a certain degree.  The report revealed the accuracy and reliability for key performance, information and management system, which happened in 2020. Suggestion for Improvement  We evaluate the collection, analysis, aggregation of the information and data. Through assurance and evaluation, we had following improvement suggestion on sustainability practice and management:  Assurance of the Report was done on 10-12.03.2021.  It is suggested to further improve the social responsibility strategic planning and set clear responsibility objectives.  It is suggested to add data comparing with peers in performance disclosure and increase the horizontal contrast of the Assurance Methodology report; Assurance process including following activities: Special Statement  Review the document information provided by CHINA SOUTHERN AIRLINES ; This statement excluding:  To combat the novel coronavirus pandemic, choose online auditing, check the emails from the person who collected  The activity outside information reveal; the report information and communicate by immediate communication tools;  The position, idea, faith, object, future developing direction, and promise which stated by CHINA SOUTHERN  View the related websites and media reports, verify the data and information through sampling method; AIRLINES.  Refer to the GRI Corporate Social Responsibility Reporting Standards (GRI Standards) on balance, comparability,  Because the economic data had been audited by the third party, we will not do double audit this time. accuracy, timeliness, clarity, reliability, and give the evaluation;  Refer to AA1000AS (2008) Assurance methodology; Statement of Independence and Competence  Assurance activity is based on TUV NORD Corporate Social Responsibility Report assurance management TUV NORD Group is the world’s leader in inspection, testing and verification, operating in more than 70 countries procedure. throughout the world and providing services which includes management systems and product certification; quality, environmental, social and ethical auditing and training; environmental; social responsibility and Corporate Social Assurance Conclusion Responsibility Report assurance. The Corporate Social Responsibility Report takes "Safe and Happy, Guarding the Journey at Ease", "Green Environmental TUV NORD (Hangzhou) Co. Ltd. (a member of TUV NORD Group) affirms its’ independence from CHINA SOUTHERN Protection, Starting a Low Carbon Journey" and "Affinity and Refinement, Creating a Warm Journey", “Efficient and AIRLINES and confirms that there is no conflicts of interest with the organization or any of its subsidiaries and stakeholders First-class, Creating a Value Journey” “Side by side, Sharing a Harmonious Journey” five aspects to reveal 2020 CHINA when performing the assurance of the Report. TUV NORD (Hangzhou) Co. Ltd. was not involved in any manner with SOUTHERN AIRLINES sustainability idea, practice, result and typical cases; CHINA SOUTHERN AIRLINES, when the latter was preparing the Report. The data in report is reliable and objective, TUV NORD did not find the system error or substantial error, which meets the disclosure requirement of GRI Standards core option:

 Balance

The performance information of loopholes and risks discovered in the basic-level operation of CHINA SOUTHERN AIRLINES were objectively disclosed, manifesting balance:  Comparability The team leader: Xuemei (Olina) Li The Authorized person: Haining Song Key data of CHINA SOUTHERN AIRLINES in 2020 was demonstrated as "key performance indicators" in the Report, Date: 29.03.2021 Date: 29.03.2021

manifesting comparability:

Note: in case of conflict between the Chinese and English versions of the declaration, please refer to the Chinese version 104 2020 Corporate Social Responsibility Report of China Southern Airlines Company Limited Appendix to the Report 105

Feedback List of Compilers

Dear Reader: Selective Questions: China Southern Airlines Social Responsibility Report Writing Team: Hello … and thank you for reading 1. Are you satisfied with this CSR report as a whole? this Corporate Social Responsibility report. In order to further improve Yes No No Opinion Yang Liu, Guan Tongpei, Zhang Xiaoli, our work and make next year’s CSR □ □ □ report even better, we hope you can 2. Is the information you are concerned about reflected in this CSR report? Wang Yuanjing, Fu Fangcong, Zeng Xin, give feedback and suggestions in the Murong Zihao, Yan Li, Deng Yunhua, following aspects: Yes No No Opinion □ □ □ Hu Jin, Xie Junyi, Sun Xiqing, 3. Do you think the report truthfully reflects the content of China Southern Airlines' Corporate Social Responsibility work and its impact on stakeholders? Your identity is: Wang Xia, He Nian, Wang Xiaoe,

Yes No No Opinion □ □ □ Li Lanlan, Sun Qian, Zhang Mengyuan,

Customers 4. Can you easily find the information you care about in this CSR report? Wang Dan, Zheng Yongming, Pan Lei, ○ Investors Yes No No Opinion Zhao Hao, Che Zixuan, Gong Tao, ○ □ □ □ Government 5. Are you satisfied with the layout design of this CSR report? Ma Xuhui, Yu Shan, He Haiyan, Zhang ○ Zhengzheng, Tang Pengfei, Fang Chao, Employees Yes No No Opinion ○ □ □ □ Wang Shuyang, Yang Haowen, Lu Liqiang, Partners ○ Wang Huihui, Li Ling, Huang Kun Environmental Protection Agencies ○ Open Questions:

Community 6. What do you think are the shortcomings of this CSR report? ○ English Editor: Jeff Ruffolo Media ○ Peer ○ 7. What content in this report do you wish to disclose on a regular basis? Other ○

8. Do you have any comments and suggestions on our future CSR work and reports?