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Driving Positive Change

2019 Corporate Social Responsibility Report Holdings Limited Corporate Social Responsibility Report 2019 01

Adhering to this new vision, CSR is to play As a listed company in , Introduction a more pivotal part than ever in Tencent’s Tencent complies with the statutory business strategy. The company believes requirements on ESG reporting. This Tencent Holdings Limited (“Tencent”) is that integrating social and environmental report supplements Tencent’s 2019 pleased to publish a condensed version concerns into its daily operations will ESG report and was developed with of its 2019 corporate social responsibility contribute to the well-being of society. reference to the Guidelines on Corporate (CSR) report, entitled Driving Positive As a responsible Internet-based platform Social Responsibility Reporting for Change. The report, supplementing company, Tencent is committed to Chinese Enterprises (CASS-CSR4.0), the this year’s environmental, social and practicing CSR and setting an example Sustainable Reporting Guidelines of the governance report Tencent publishes for the wider community. The Company Global Reporting Initiative (GRI) and the as a Hong Kong-listed company, is part began publishing CSR reports in 2008 Environmental, Social and Government of an ongoing initiative to engage the and in 2017 made it an annual publication Reporting Guide of the Hong Kong Company’s stakeholders through its CSR to communicate its CSR initiatives to its Exchange and Clearing Limited at the efforts. stakeholders on a regular basis. time of writing.

In 2019, Tencent reflected on its corporate This year’s report outlines Tencent’s CSR Looking to the future, Tencent is culture and put forward a new vision – strategy, approach and achievements in committed to living out its new vision “Value for Users, Tech for Good”. This 2019, explaining the Company’s pledge to of “Value for Users, Tech for Good” commits the Company to enhancing user build ample technological infrastructure by continuing to develop advanced value in every aspect of its operations, to support the needs of the digital era technologies and innovative products and as well as leveraging technology towards through its products and solutions. It services that create shared value. In doing creating an ethical and sustainable also presents the Company’s various so, the Company will be connecting and society. initiatives around rural vitalisation, industry empowering hundreds of millions of users, digitalisation and cultural rejuvenation, entrepreneurs, developers and business among others, demonstrating Tencent’s partners within the Tencent ecosystem as commitment to building a better well as in communities around the world company, a better ecosystem and a to create a better future together. better world. Against the backdrop of the global COVID-19 outbreak, the report also includes a special section on the Company’s response to the pandemic around the world. It illustrates how Tencent is embracing its responsibility as an Internet-based platform company, playing the role of connector and digital assistant for a wide range of industries and communities amid this trying time. Tencent Holdings Limited 02 Corporate Social Responsibility Report 2019

Content

01 Introduction

03 Messages from the Management Team

10 Tencent Upgrades CSR Management

16 Special Report

20 For a Better Company

26 For a Better Ecosystem

34 For a Better World

50 Appendix Tencent Holdings Limited Corporate Social Responsibility Report 2019 03

Messages from the Management Team Tencent Holdings Limited 04 Corporate Social Responsibility Report 2019

Building a Solid Foundation for the Digital Era with a Human Touch

As a new wave of information technology and industrial transformation emerges, digitalisation is accelerating at an unprecedented speed – like a skyscraper springing up from the ground. The vital mission and responsibility of technology companies is to build a solid foundation for this digital edifice.

Ma, Huateng (Pony Ma) Co-founder, Chairman of the Board and Chief Executive Officer of Tencent

2020 has been an unforgettable year. In fighting the pandemic, we realised clearly that for nearly half a century, The COVID-19 pandemic has swept digitalisation has substantially improved the world, leaving a multifaceted and the quality and efficiency of life and profound impact on human civilisation production. As a new wave of information that will be long-lasting. The current technology and industrial transformation situation is reminiscent of the many emerges, digitalisation is accelerating pandemics of far-reaching consequence at an unprecedented speed – like a throughout history. However, what is skyscraper springing up from the ground. different today is that we live in a digital “Tech for Good” is neither empty talk nor era, whereby the world is like a village and an unrealistic fantasy; in fact, it should be everything is connected. woven into every piece of code we write, every product we develop and every Last year, “Tech for Good” became an service we offer. The vital mission and integral part of Tencent’s new mission responsibility of technology companies is and vision. Navigating this pandemic in to build a solid foundation for this digital the digital era is a challenge for the entire edifice. world, as well as for Tencent. Tencent Holdings Limited Corporate Social Responsibility Report 2019 05

To build a foundation in this digital responding to various needs such as Promoting technological innovation era, technological capabilities should contact tracing, remote healthcare while adhering to our “Tech for Good” be considered the reinforcing bars and consultation, mask pre-orders and principles is how we are laying a solid concrete. Since last year, the notion of pandemic-related education. We have foundation for the digital era with a “new infrastructure”, mainly represented been rapidly upgrading Tencent Cloud, human touch. For Tencent, the focus of by 5G, artificial intelligence (AI), big data Tencent Meeting and WeCom among our work throughout 2019 and the spring and cloud computing, has captured other products and services to support of 2020 has been to reflect on and live widespread attention. Not only has such business continuity and the resumption of out this responsibility and mission. We infrastructure shown great potential amid work and production in . hope to share this focus with the entire the global battle against the pandemic, technology community. but it is also expected to provide fresh The pivotal role of digital technology momentum to the development of a in tackling poverty and driving rural At a time when the pandemic is still digital economy and smart society, all in vitalisation has become increasingly affecting many parts of the world, it is view of opening up new horizons. clear. more important than ever for all of us to join hands and look to the future To maintain our leading position Tencent’s digital solution for rural areas, together. Years later, when we look back amid this new wave of technological WeCounty, has served more than 15,000 at the spring of 2020, we will realise how innovation, Tencent has continued to villages and 2.5 million villagers. Apps like technology has helped human society increase research and development Weixin, WeiShi and Tencent News have navigate this hardship. We believe that (R&D) investment in fundamental and played important roles in helping villagers this unprecedented pandemic of the 21st cutting-edge technologies, as well as connect with the outside world. century will not only leave us grieving, actively promoted the establishment feeling anxious and unsettled, but also of a global open source technology To lay the foundation for the digital era, give us faith, wisdom and courage to community. We have also been working we must also draw inspiration from the move forward. to upgrade existing technologies in areas values we hold, just as proper calibration such as cloud computing, AI, big data, is required in construction. Today, payments and security, and support the technology has been deeply woven into digital transformation of industries. the fabric of human activity. To ensure technological developments benefit The COVID-19 pandemic has human society, we need a clear standard highlighted the importance of and of technical ethics and to apply the urgency around building “new influence of humanism. infrastructure” in the digital era, at a time when cities and villages, corporates Over the past year, we continued to and public service organisations, explore how to leverage technology to including schools and hospitals, have all address social issues such as healthcare been confronted with unprecedented for an aging population, the protection challenges. Embracing our responsibility of the underage on the Internet and amid these critical conditions, Tencent the application of AI in the agricultural, launched more than 100 anti-pandemic energy and environmental sectors. Mini Programs within two months, Tencent Holdings Limited 06 Corporate Social Responsibility Report 2019

Creating Value Sustainably for a Better World

Only by transcending time and geographic boundaries, having users at heart, working with partners and keeping an eye to the future can an enterprise create value sustainably and achieve both a better self and a better world.

Lau, Chi Ping (Martin Lau) President of Tencent

What do you think of the future? What source code of its anti-pandemic should humans do when the next tools, including the global pandemic environmental or health crisis occurs? information system and its AI pneumonia self-screening technology, In the face of this COVID-19 crisis which is to the global community; impacting all mankind, Tencent has taken a series of actions over the past months • These are actions beyond individual to support the global fight against the companies: Tencent, together with pandemic, reflecting our commitment to major global technology and Internet live up to our responsibilities: platforms, launched a philanthropic initiative to combat the pandemic • These are actions beyond national through the use of technology, actively boundaries: Tencent set up a RMB1.5 collaborating with the World Health billion domestic Anti-Pandemic Organisation and Chinese Academy Fund and then a USD100 million of Engineering among other domestic Global Anti-Pandemic Fund, as well and international institutions; as voluntarily made available the Tencent Holdings Limited Corporate Social Responsibility Report 2019 07

• These are actions beyond the • Creating value sustainably and education and philanthropy. We also present: Apart from donating urgently prioritising “Value for Users” in proposed the “AI for FEW” initiative, needed medical protection materials everything we do. exploring the possibility of using AI as a to foundations and organisations in means to mitigate the lack of resources in numerous markets in a timely manner, Over the past year, Tencent further food, energy and water. Tencent has also started to invest integrated its platform, content and long-term in research initiatives related technology to bring high-quality services Tencent has officially incorporated “Tech to healthcare and public hygiene. to more Internet users. Leveraging its for Good” into its mission and vision. technological capabilities, Tencent This direction has received an increasing To Tencent, shouldering responsibility is continues to support the upgrading of amount of positive feedback from the by no means a temporary commitment, municipal services and public initiatives. government, academia, industries and but a thread that runs through the the general public. We believe that Company’s corporate history and • Promoting inclusion and collaboration technology is by no means a cold tool; the is deeply rooted in the DNA of its and achieving co-creation and shared value of taking our responsibility seriously organisational culture. values. is that it will unleash more effectively the potential of technology to move us In our Corporate Social Responsibility Affirming the profound aspiration of towards the true and the good. Report last year, I mentioned that natural users to realise their personal value, our phenomena – like the change of seasons, social and content platforms, such as QQ, While the fight against the pandemic is the flow of rivers and the water cycle – Weixin, Tencent News, and far from over, nature continues to tread its are reminiscent of Tencent’s constant WeiShi, have joined hands in this era of own path. When the snow and ice melt, evolvement. Despite the changes we have co-creation, working with different parties they transform into spring rain, merge into experienced, the core idea behind it all is such as community operators, content rivers and finally run into the sea, only to to create value for our users. creators, technology developers and users return again as snow and ice. An ongoing to share in the excitement of the “We” cycle that never ceases; such is how water Currently, a new wave of technological Internet. nourishes and nurtures life – just as how innovation and industrial transformation Tencent carries its social responsibility. is emerging; paired with a deepening Regarding the Industrial Internet, Tencent integration between the Consumer has continued to upgrade its technology Whether it is the experience from Internet and the Industrial Internet, as and tools and is collaborating with Tencent’s practices over the past year well as the presence of a digital era in partners across various sectors to build or from fighting the pandemic, we have which everything is connected, Tencent’s the “We” digital economy. learned that only by transcending time responsibility has evolved accordingly. and geographic boundaries, having In view of the increasing conflict • Pursuing long-term projects and users at heart, working with partners between technological development and measuring value in the light of and keeping an eye to the future can an environmental, social and governance history. enterprise create value sustainably and considerations, technology companies are achieve both a better self and a better obliged to create value in a sustainable Last year, Tencent conducted a wide world. manner. range of non-profit activities. For example, we continued to implement our What do you think of the future world? digital solutions for heritage conservation, The above, I think, is Tencent’s answer. as well as to explore the value of games related to cultural inheritance, technology Tencent Holdings Limited 08 Corporate Social Responsibility Report 2019

Balancing Innovation and Pragmatism is the Future of Philanthropy

I believe that we are all children of the Earth, born with a good human nature. The starry sky and the earth form a perfect harmony. Similarly, balancing innovation and pragmatism is crucial for the future of philanthropy.

Chen, Yidan (Charles Chen) Co-founder of Tencent Founder and Honorary President of Tencent Charity Foundation

The 2020 pandemic has reinforced Asking questions, searching for answers Tencent Charity Foundation’s initial through technology and looking to the aspiration – to bring out the goodness future – since its founding, this has been of technology for a better society. Tencent’s approach to pursuing higher goals while keeping its feet on the Amid the pandemic, Tencent Charity ground. It is also one of Tencent Charity Foundation dedicated funds to provide Foundation’s most important experiences urgent material assistance and personnel over its 13 years of operation. care to frontline workers, as well as invested in basic research related to medical and public health, as a precaution for human health. Tencent Holdings Limited Corporate Social Responsibility Report 2019 09

I once put forward the idea that Tencent’s pragmatic approach to Many people think that technology is philanthropy only takes off when society philanthropy is reflected in our associated with far-off imaginations, like encounters adversity. However, as commitment to rational charity and the starry sky, beautiful yet distant. I have human civilisation continues to develop our adherence to ethics and the rule to say that this is a misconception. Today, and society becomes more complex, of law. For example, during last year’s in this digital era, technology has been traditional mindsets and approaches 9.9 Giving Day, Tencent Charity strictly woven into every aspect of our lives, to philanthropy have proven inefficient imposed the transparency requirements of similar to the air that surrounds us. in coping with today's ever-evolving “financial disclosure, independent audits social issues. Fortunately, over the past and random sampling checks”. Currently, Last year, Tencent made an unprecedented decade, the Internet-based charity we are developing a project evaluation move to incorporate “Tech for Good” platforms pioneered by Tencent have system specifically to promote the idea of into its mission and vision. Internet-based driven innovation through technology, rational charity. charity, as a reflection of this principle, contributing to the world a “Chinese is one of the most powerful examples example” of how philanthropy can be Pragmatism is also reflected in our of technology being put to the good of conducted online. attempt to remain realistic and respond society. On the one hand, Tencent Charity appropriately to the needs of our country, Foundation will continue to look up to the 2019 marked the fifth anniversary of society and people. Last autumn, I starry sky and explore the possibilities of the 9.9 Giving Day initiated by Tencent participated in an Internet Conference technological innovation; on the other, Charity Foundation. Within just three held in a farming field in Qionglai of we will keep ourselves down to earth, days, Tencent Charity Platform received Sichuan province, experiencing first-hand monitoring the deep-rooted causes over 48 million donations from Internet the sparks that fly when Internet-based of social issues and responding to the users, totalling RMB1,783 million and charity interacts with rustic village pressing needs of the moment. doubling the amount received in 2018. lifestyles. The number of participating charitable I believe that we are all children of the organisations and enterprises both Villages are the spiritual hometown of Earth, born with a good human nature. exceeded 10,000. the Chinese people. Poverty alleviation The starry sky and the earth form a perfect and rural vitalisation are the most urgent harmony. Similarly, balancing innovation Internet technology has given charity public welfare goals in China. and pragmatism is crucial for the future of work and philanthropy infinite philanthropy. possibilities. At the same time, we If we see WeCounty as the internal power continue to remind ourselves to be capable of establishing connections down-to-earth and remain connected between villages, then the Tencent to the social environment in which Charity Platform is the energy from philanthropic activities are embedded and the broader society to support rural carried out. development through charitable activities. Both are evidence of Tencent Charity Foundation’s commitment to our country. Tencent Holdings Limited 10 Corporate Social Responsibility Report 2019

Tencent Upgrades CSR Management Tencent Holdings Limited Corporate Social Responsibility Report 2019 11

Tencent has made corporate social responsibility an integral part of the Company’s development strategy and integrated CSR values into its business operations to promote sustainable growth.

Better Governance

Tencent has continued to formalise its CSR initiatives and structure through the establishment of a dedicated department to oversee the implementation of its CSR strategy. We also have designated CSR liaison officers in all departments and regions to drive our campaigns and strengthen our social responsibility governance.

In 2019, as a way of embedding our vision and mission, “Value for Users, Tech for Good”, into our products and services, as well as encouraging our employees to voluntarily carry out their own social responsibilities through service to the community, Tencent launched the Charity and CSR Award, attracting applications from nearly 200 project teams. Seven projects, including WeCounty and 9.9 Giving Day, won awards. Tencent Holdings Limited 12 Corporate Social Responsibility Report 2019

Tencent’s Views on Corporate Social Responsibility

Social

t E en m m p n lo r y e e v e o G r o T t o Culture c o Ecology e l n Technology b n o o x

C Connection

Culture

Ec er os p ry U yst elo t se em co-dev s r du In

Public Services Economy

1 A single initial aspiration: 2 Two drivers:

To create value for all stakeholders through facilitating connection. Technology and culture are the two powerhouses that drive Tencent to fulfil its social responsibilities.

3 Three roles: 4 Four target groups:

In the digital era, Tencent is carrying out its social responsibilities In conducting its social responsibilities, Tencent is improving by playing the role of a Connector, Toolbox and Ecosystem co- the quality of life and services across four target groups: the developer. government, industry, users and employees.

5 Five dimensions:

Tencent’s CSR initiatives cover five dimensions – public services, the economy, society, culture and the environment. Tencent Holdings Limited Corporate Social Responsibility Report 2019 13

​Better Communication Recognitions

Tencent believes that support from stakeholders is indispensable in the Ranked No. 1 on the China CSR Index, published by The Chinese Brand pursuit of sustainable development. We Development Research Institute in May 2020 recognise the significance of effective communications with our stakeholders, and spare no effort in understanding and Ranked No. 7 on the Top 500 Socially Responsible Chinese Enterprises responding effectively to their feedback. in 2019, announced by the Chinese Enterprises Evaluation Association in January 2020 Tencent published its first CSR report in 2008. Since then, Tencent began publishing CSR briefing reports, special reports, monthly reports and other publications to strengthen the Company’s CSR exhibitions and hosting open days which Tencent ATOM Think Tank jointly stakeholder engagement. The Company for users and its employees’ families. published the Research Report on the has experimented with new forms of CSR Responsible Power of Chinese Enterprises communications, including organising In November 2019, Tencent held its with the Research Centre of CSR and annual social responsibility forum, during China Academy of Social Sciences. Tencent Holdings Limited 14 Corporate Social Responsibility Report 2019

Stakeholder Mapping

Tencent’s Stakeholders and Associated Responsibilities

Stakeholder Primary responsibilities Additional responsibilities Communication and implementation

Provide stable and reliable Respond promptly to evolving Recognise users’ needs and develop products and services user needs and continuously the Company’s “Technology + related to technology and enhance service quality. Culture” strategy, with the aim to culture. enhance user experience. Create new lifestyle possibilities for users with innovative Innovate designs, products and Users products. technology to create new value and lifestyle possibilities for users.

Create a sound business Disclose financial and Establish a board of directors and model and generate operational information in a publish financial reports on a quarterly investment returns for timely and accurate manner, basis. shareholders. in compliance with all relevant rules and regulations. Convene regular shareholder meetings and extraordinary general Shareholders Communicate with investors meetings. through a variety of interactive channels, including face-to-face Set up an Investor Relations meetings. Department to communicate with shareholders and investors.

Develop a comprehensive Care for and nurture Human Resources Department employee benefits employees; provide them oversees employment policies and system. with training and career employee benefits. development opportunities. Form an Occupational Health and Foster a diverse and inclusive Safety (OHS) Committee to promote Employees corporate culture. work safety and establish hygiene standards.

Build and manage Tencent Academy to provide ongoing training opportunities for employees.

Pay all relevant taxes in Comply with the laws and Establish a Public Affairs Department accordance with the law. regulations of each region in that will work closely with regulators which we operate. to ensure compliance with relevant government policies. Assist in solving social and livelihood issues. Maintain regular communication with Government government departments. Tencent Holdings Limited Corporate Social Responsibility Report 2019 15

Tencent’s Stakeholders and Associated Responsibilities

Stakeholder Primary responsibilities Additional responsibilities Communication and implementation

Conduct business Regularly communicate with Hold regular meetings with suppliers responsibly and prevent business partners. and partners to explore growth bribery and corruption. opportunities and remove any barriers Help our business partners to successful collaboration. grow. Provide strategic support for the Business partners growth of our business partners.

Prevent behaviour that could compromise the interests of our partners by setting up an independent anti-bribery and corruption task force.

Provide necessary Innovate the way in which Build an online donation platform. financial support. charity activities are conducted to increase impact. Open up technology, products and data capabilities to support public Help charity organisations donations, project management, grow. publicity and financial disclosure Charity across all kinds of charitable organisations organisations.

Use Internet-based tools Allocate donations for specific Make direct donations in support of to support community causes. community development projects development. through the Tencent Charity Fund; Implement charity projects in provide necessary funding and underserved areas. resources.

Communities in Leverage our Internet capabilities to which we operate advance community development. Tencent Holdings Limited 16 Corporate Social Responsibility Report 2019

Special Report: Tencent’s Fight Against the COVID-19 Pandemic Tencent Holdings Limited Corporate Social Responsibility Report 2019 17

Unleashing the Potential Amid the pandemic, we have remained Pandemic Relief: Using of Digital Infrastructure to fully aware of our responsibilities as a Technology to Help China technology platform company. From Safeguard Public Health supporting frontline anti-pandemic and the World Fight workers in a timely manner to providing COVID-19 After 76 days of lockdown, Wuhan long-term health protection for society, officially reopened at midnight on 8 April. we are committed to playing the role The COVID-19 pandemic has threatened As the pandemic began to subside in of Connector and Toolbox for different lives and disrupted work on a global China, the number of confirmed cases and industries, unleashing the potential of scale, leaving a devastating and long- deaths continued to rise in other parts of digital infrastructure and acting as a force lasting trail of impact. In response, we set the world. The COVID-19 pandemic has for good. up a RMB1.5 billion domestic emergency had far-reaching consequences for people fund, followed by a USD100 million Global everywhere. Anti-pandemic Fund, and have worked tirelessly to provide technological support in the fight against the pandemic.

Tencent Anti-pandemic Fund: Three Successive Contributions

Tencent Charity Foundation Tencent set aside RMB200 Tencent added RMB1 billion Tencent set up a USD100 set up a RMB300 million million to fund the Charity to a domestic emergency million Global Anti- fund to fight COVID-19 Alliance of Developers fund, raising the total to pandemic Fund to help Fighting Against COVID-19 RMB1.5 billion various countries fight COVID-19

24 January 3 February 7 February 24 March Tencent Holdings Limited 18 Corporate Social Responsibility Report 2019

The Four Dimensions of Tencent’s Technology-driven Fight Against COVID-19

1 Medical research and frontline support

We helped hospitals develop online consultation platforms and tools, donated AI- powered CT screen cabins and provided free servers for research institutes to conduct drug screenings.

2 Public communications

We provided online services for the public to check real-time statistics about the pandemic and locate clinics. Additionally, we joined other Internet platforms to launch free online consultation services and worked with media experts to communicate accurate information about the pandemic and other healthcare tips.

3 Municipal services

We launched more than 100 Mini Programs to help provide municipal services related to the fight against COVID-19.

4 Resumption of work and productivity

We upgraded our solutions to support remote offices, online sales and digital marketing so that SMEs and merchants could quickly resume operations. We also opened up our educational platform and content to help schools, teachers and students continue teaching and learning. Tencent Holdings Limited Corporate Social Responsibility Report 2019 19

Leveraging the Tencent Platform Regarding support for technology Assisting Professional to Raise Donations and Other development, on 3 February Tencent Development for Frontline Support pooled together RMB200 million to form Medical Professionals the Charitable Alliance of Developers Tencent responded quickly to the fight To further the professional development Fighting Against COVID-19. The fund against COVID-19. On 24 January, of medical practitioners, we entered into a provided vendors and developers with Tencent Charity Foundation allocated an partnership with the Chinese Academy of capital, technology and other resources to initial RMB300 million in funds to purchase Engineering and donated RMB30 million help them develop pandemic-related Mini medical and protective equipment for to provide mentorship services to over 500 Programs for healthcare organisations and Wuhan and other hard-hit areas. frontline anti-pandemic workers, drawing merchants. Over just the first half month, from the knowledge and experience of the Alliance received 1,769 applications The fund was later increased to RMB1.5 fellows from the Academy. The mentors from developers and launched 84 billion to support pandemic relief and provided assistance regarding medical charitable projects. protection initiatives, including the research, clinical treatment and disease provision of supplies and technology, care Sharing Technology Resources prevention. for people in need, funding for research and assistance in developing new Weixin joined hands with Facebook Continuing Investment in Public healthcare industry infrastructure. and the WHO to crowd-source anti- Health Research pandemic solutions. We made available We will invest anti-pandemic funds into As the outbreak spread globally, Tencent to the global community Tencent clinical treatment research and R&D for set up a USD100 million Global Anti- Health’s international COVID-19 live drugs and vaccines, as well as into basic pandemic Fund on 24 March to support update module, which at the time had research related to pathogen analysis and the United Nations (UN), World Health already answered six billion enquiries in pandemic monitoring. Organisation (WHO) and other countries China, allowing governments, medical and regions in the fight against the virus. institutions, the media and pandemic- related service developers to use it free- As of 18 March 2020, we had donated over RMB200 million to research projects The Tencent platform has been of-charge to build their own pandemic related to public health, supporting instrumental in pooling social resources. information enquiry systems. different partners including the Chinese On 23 January, the Internet-based Academy of Engineering, Tsinghua Tencent Charity Platform dedicated In addition, our AI-powered self-diagnosis University and top-tier research teams. a special interface to facilitate anti- tool was also made available to help Looking to the future, our role as a pandemic donations, supporting more people around the world assess their risk “digital assistant” to public health than 160 fund-raising projects organised of infection and take timely measures to research projects is to continue by over 100 charitable organisations, and protect themselves. contributing our capabilities in cloud raising a total of over RMB600 million by computing and product technology, the end of April. Public Health Research as well as leveraging our ecosystem to Over the Long Run provide resource support. Assisting the Resumption of Work Tencent and Tencent Charity Foundation Over recent years, Tencent has made As the pandemic developed, we quickly will continue to reflect on their roles progress in basic medical research and launched a new generation of Internet- in the area of public health, especially AI+ healthcare. In the future, we will based solutions and tools, such as regarding the prevention and treatment adhere to our vision, “Tech for Good”, remote healthcare services, online of infectious diseases. In the future, we and work closely with governments, meetings, safe transportation options will focus our efforts on assisting with R&D medical and social organisations, the and online classrooms, all to facilitate the around vaccines, drug screening tools, media and the general public to continue resumption of work and production. We the monitoring of infectious diseases, the addressing issues in the public health did this by leveraging our technologies enhancement of medical treatments and domain. and capabilities across Tencent Health, services and public health governance. Tencent Medipedia, WeCom, Tencent We will also continue to find public Meeting, Weixin and QQ. health solutions, making full use of our advantages in big data, technology and products. Tencent Holdings Limited 20 Corporate Social Responsibility Report 2019

For a Better Company Tencent Holdings Limited Corporate Social Responsibility Report 2019 21

In 2019, we reflected on our corporate In 2019, Tencent elevated its vision and offer better products and services and culture and put forward a new vision mission, marking another important enhance users’ productivity and quality of – “Value for Users, Tech for Good” – milestone on the path of the Company’s life. striving to incorporate these principles development. Our new mission and into our products and services. By vision, “Value for Users, Tech for We have also evolved our values. While building a transparent governance system, Good”, connects the various aspects inheriting the values of “Integrity” placing emphasis on employee care and of our business, including our internal and “Proactivity”, we upgraded those encouraging employees to give back to governance, organisational structure and of “Cooperation” and “Innovation” society, we are committed to building a business model. It informs the values to “Collaboration” and “Creativity”. better company. that are shared by our employees and We also conducted a vote among all guides their action. By striving to become Tencenters, whereby the “bee” and the Refreshing Our Corporate a better Company, we are able to better “dolphin” were selected to symbolise Culture: Integrating “Tech meet the expectations of our external “Collaboration” and “Creativity” stakeholders. respectively. for Good” into Our Vision and Mission “User” and “responsibility” are Tencent’s Tencent Culture lifeblood. Technology is powerful and Mission & Vision Over the past 21 years of our Company evolving rapidly, making how we use it history, despite a complex business important for the well-being of mankind. environment, we have maintained an “Tech for Good” is our choice and unwavering dedication and commitment commitment. We strive to continuously Value for Users, to creating “Value for Users” in everything improve our technological capabilities to Tech for Good we do. User value is our guiding principle, we strive to incorporate social responsibility Tencent’s corporate culture is embedded in into our products and services;

products and services that are creating great Promote technology innovation impact, in teams with an ambition to change and cultural vitality; help industries digitally upgrade; the world and in the important decisions that collaborate for the sustainable determine the path of our development. development of society.

Pony, Martin and members of the General Office Tencent Holdings Limited 22 Corporate Social Responsibility Report 2019

Values

Integrity

Uphold principles, ethics, openness and fairness. Giraffe

Proactivity

Bee Pursue positive contributions, volunteer for responsibility and Collaboration push for breakthroughs.

Be inclusive and collaborative, strive to progress and evolve. Sea Swallow

Creativity

Push for breakthrough innovations, explore Dolphin the possibilities of the future.

Safeguarding Governance: management and development and effective checks-and-balances to protect Establishing a Transparent generating sustainable value for our shareholders’ interests. There are five shareholders. committees set up under the Board, Governance System namely, the audit committee, corporate Optimising Our Governance governance committee, investment Our governance framework complies with Framework and Strengthening committee, nomination committee and all laws and regulations in the jurisdictions Internal Control remuneration committee. where we operate, including the rules and We have a single Board of Directors, with requirements of The Stock Exchange of independent non-executive directors We believe that gender diversity is key Hong Kong Limited. We are committed accounting for over one-third of our to effective governance. Reflecting this to maintaining the highest standards board members. This composition commitment, we appointed our first in corporate governance, keeping brings a wide range of experience and female independent non-executive investors fully informed of the Company’s expertise to the Board, and enables director in 2019. Tencent Holdings Limited Corporate Social Responsibility Report 2019 23

We have put in place an internal the consequences of violations. Serious At Tencent, we have always subscribed control system to help the Company’s violations will lead to employees being to the principle of “Data for Social management and Board of Directors dismissed and external parties being Good”. This principle ensures that users’ ensure that our financial and asset sanctioned from future cooperation. A data remains private and protected. protections (including data assets) are breach of the Code may also lead to legal Our “Person-Button-Data” approach in full compliance with the relevant consequences. is the methodology behind the regulations. Our internal and external privacy-by-design concept. We believe auditors are responsible for overseeing We have an Anti-fraud and that users should be able to manage their the operation of the internal control Whistleblowing Policy in place to own data, which is why our products and system and offering related advice to the investigate fraud and prevent bribery and services include a wide range of user- management and audit committee. corruption. In 2019, we investigated over controlled privacy options. 50 cases and dismissed more than 80 We are committed to enhancing our employees due to violations of the policy. User data is protected by high-level risk management system, covering More than 10 people were handed over security technologies that extend to our risk management framework, to law enforcement for suspected criminal all of our products and services across procedures and culture. By improving offences. the entire data life cycle. This includes our risk management capabilities, we ensuring secure technical controls and are protecting the Company’s long-term Compliance and Privacy policies are in place during the stages growth and sustainable development. Protection of data creation/collection, transmission, Tencent places great emphasis on the storage, usage, sharing/transfers, Under the supervision and guidance protection of user privacy and data. To and destruction. In addition, where of the Board, we have adopted a risk this end, we have set up designated appropriate, we also leverage AI and management and internal control privacy protection teams and put in place other innovative technologies to enhance structure, referred to as the “Three product-specific privacy policies and our protection against cybersecurity Lines of Defence” model, across stringent procedures for collecting and threats. our operations, management, risk processing user data, all to ensure we management and independent assurance. remain in compliance with the evolving Moreover, Tencent has established a We have put in place risk management regulatory environment. The Company full-cycle data management system and internal control policies to strengthen also conducts privacy risk assessments and adopted a five-dimension privacy risk-awareness among our employees and before launching new products, as well protection mechanism, covering ensure that our operations are efficient, as provides privacy protection training compliance management, product as well as in compliance with the latest for employees. We published a white assessment, information security, internal requirements on corporate governance paper on privacy protection and set up audits and employee education. by The Stock Exchange of Hong Kong a platform to help users understand our Limited. Each business group regularly privacy protection initiatives. We have also deployed various identifies and assesses risk factors that data security technologies, such might keep it from achieving its targets. In as data encryption, data masking, response, business groups formulate risk de-identification and quantum mitigation measures and receive training cryptography, to safeguard users’ data on effective risk management and internal security. Our data protection measures control. span across prevention, usage and investigation. Implementing Our Code of Conduct and Preventing Bribery For more information about our Scan the QR code to read a and Corruption efforts in this area, please refer to the summary of the white paper To implement and promote our corporate “Safeguarding Cyber Security” section on culture, we put in place the Sunshine page 37. Code of Conduct to guide the behaviour of our employees and clearly stated Tencent Holdings Limited 24 Corporate Social Responsibility Report 2019

Tencent Academy's talent nurturing program

Employee Care At Tencent, all employees enjoy We have set up branch offices in various comprehensive health protection, which Chinese cities, as well as overseas in the covers an annual medical checkup, United States, South Korea and other We regard our employees as our primary 24-hour health consultation services, markets. All employees at these branches asset. Among the nearly 65,000 Tencent healthy diet programs, workout facilities, enjoy a pleasant and innovative working employees (as of Q1 2020), some personal coaching and psychological environment that embodies Tencent’s 20,000 are engineers, hailing from 18 support. On top of the statutory insurance culture. countries and regions around the world. and pension benefits, we also offer Additionally, 98% of our engineers have bespoke commercial insurance policies to an undergraduate degree or above Engaging All Employees employees and their family members. and 50.2% have a postgraduate degree We encourage our employees to or above. To support the individual participate in the Company’s growth by Our employee perks and benefits also development of our employees, we putting in place effective channels of include interest-free housing loans and provide them with a range of resources to communication for them to voice their wedding and child-birth gifts. We provide improve their living and working standards views and protect their rights. At the holiday perks to employees and their and enrich their cultural experiences. annual employee townhall, Tencent’s top families and host the annual Open Day executives present to all staff members Comprehensive Rewards and for our employee’s families. We also offer the Company’s strategy, business plans Protection flexible work schemes for employees who and management ideas, as well as need them. recognise teams of employees who have We offer every employee a competitive delivered outstanding performance at salary, as well as subsidies and allowances Tencent is committed to promoting work. commensurate with his or her position. equality, transparency and At the end of each year, we give out non-discrimination. We respect all To facilitate internal communications and performance and service bonuses, along employees, regardless of their gender, build employee trust in the Company, with special awards for “star employees” nationality or religion, and maintain a Tencent has created an internal platform and “star teams”, to recognise our people working environment characterised by called Lewen for employees to submit and encourage them to continue growing equality, harmony and inclusiveness. questions on a named or anonymous with the Company. basis. They will receive responses on a Tencent Holdings Limited Corporate Social Responsibility Report 2019 25

real-name basis. This has proven to be assist our employees in developing career As of the end of 2019, the association had an effective communications platform for plans in accordance with their aspirations organised a total of 142 events, covering Tencent to address employees’ needs and improve their capabilities, while everything from the tracing of missing in a timely manner. In 2019, an average making sure their contributions to the persons and activities targeting children of 400 new questions and around 2,000 Company are properly reflected in their with special needs to poverty alleviation responses were added to the forum each job positions. and education. week. Charitable Initiatives by WeInnovate Awards – “Tech for Fostering Employees’ Growth Our Employees Good” Category Reflecting our commitment to employees’ The WeInnovate Awards, founded by growth, we founded Tencent Academy Our vision, “Value for Users, Tech for Tencent’s Technology and Engineering in 2007, offering a comprehensive range Good”, forms the guiding principle at Group in 2011, is designed to recognise of courses and training programs for Tencent, driving our employees to do products and projects that demonstrate our people, with the goal of nurturing what they can to give back to society. outstanding commercial value and talent for Tencent’s current and future Over the past year, Tencent volunteers technological innovation. Under the development needs. not only participated in charitable leadership of , Co-founder of activities in their communities, but also Tencent, a new category was added to As of the end of 2019, Tencent Academy voluntarily applied ethical thinking about the awards in 2018. The “Tech for Good” had 1,495 lecturers within the Company, technology and the principle of “Tech category is the Company’s first award offered 448 courses and hosted an for Good” in the development of our dedicated to promoting technology average of more than 9,600 classes products and services. For Tencent ethics. It encourages our people to totalling more than 24,000 hours. Physical employees, charity has become a part of consider the importance of preventing classes were attended by 87% of all their work and life. addictive behaviour, the impact of employees, while online courses reached information overload, information safety 90% participation. Tencent Volunteers Association and user-friendliness. The objective is to remedy the problems arising from In 2006, Tencent’s employees founded We have also put in place a “dual technological advancement through the Tencent Volunteers Association, which path” career development system to product innovation. serves as a platform for members to help promote employees’ professional blend their own creativity with Tencent’s development. It is a system designed to technology and products to help the wider community.

Case Study

Starry Color

Since 2017, the tutors of Starry Color, Tencent’s charity culture brand, have been hosting art therapy programs for autistic children. In 2019, a group of Tencent employees turned their artwork into a T-shirt design as part of a charity initiative launched within the Company. For every order placed by a member of our staff, RMB9.9 was donated to support autistic children. Tencent Holdings Limited 26 Corporate Social Responsibility Report 2019

For a Better Ecosystem Tencent Holdings Limited Corporate Social Responsibility Report 2019 27

New technology powers the progress realising our vision. Leveraging technologies Applications and Tools Meeting of human society. At Tencent, we are such as cloud computing and big data, the Needs of All committed to the mission “Tech for an increasing number of lifestyle and Over recent years, Tencent began Good”, and are eager to contribute business activities have migrated to the offering a “Toolbox” comprised of various to a better and more inclusive society cloud. Together with our users and industry technologies, capabilities and products, supported by digitalisation, Internet partners, we have ushered in a new era of including cloud computing, big data, connectivity and intelligentisation. We the cloud. AI, security, mobile payments, social are also working hard to leverage cloud advertising, WeCom, Official Accounts computing, big data, AI and other Strengthening Core and Mini Programs. The “Toolbox” was technologies to support the digital Technological Capabilities developed to help industries share in transformation of industries, including Tencent offers world-class products and the benefits of digitalisation. With these agriculture, manufacturing, commerce, services, such as cloud computing, big tools, companies in traditional industries, education, healthcare and cultural data and AI, as well as industrial solutions regardless of their size, are now equipped tourism. Our goal is to improve the overall based on our robust technological with the right capabilities to increase their efficiency of society, facilitate a balanced capabilities. Our aim is to create an open digital competitiveness. allocation of resources, narrow the digital and inclusive cloud ecosystem, in support divide between regions and communities, of all industries as they move along their Building Infrastructure for All on and maximise the social value and digitalisation journeys. the Cloud benefits of technology. Tencent has been supporting the digital In 2019, Tencent became the first upgrading of all industries with solutions A New Era on the Cloud company in China and the fifth in the covering FinTech, marketing and remote world to exceed one million servers and collaboration, with the goal of enhancing The recent focus on “New Infrastructure” 100 terabytes of bandwidth to handle communication efficiency and driving has driven the development of 5G networks, traffic spikes. We have an extensive the digitalisation of production activities. data centres and AI technologies, giving network infrastructure across the globe Through the development of fundamental momentum to the Industrial Internet. and our high-performance distributed technologies and establishment of our Tencent is consolidating its strengths in graph computing platform is equipped platform ecosystem, we have been able to the Consumer Internet and embracing with world-leading computing power, provide strong support for our consumers, opportunities in the Industrial Internet. In capable of shortening computing times manufacturers and service providers to 2019, we took one step further towards from days to within minutes. By the end embrace “the era of the cloud”. of 2019, Tencent had applied for 4,899 patents in cloud technology, of which 1,892 have been granted. Tencent Holdings Limited 28 Corporate Social Responsibility Report 2019

Tencent is committed to driving strives to co-create and share our social Through its wide range of products and innovation in digital payments and and content platforms with our users. services, Tencent is offering a platform facilitating more payment scenarios for users to communicate and interact, that are secure and convenient for our Allowing All to Be Seen and fulfilling their needs for high quality and users. We are also working to upgrade Respected diverse cultural products. our financial service capabilities, such In 2019, the number of monthly active as helping to educate users who wish users (MAU) on QQ exceeded 700 million More Inclusive Information to learn more through our new smart and the combined MAU for Weixin and Access investment advisory feature on our wealth WeChat reached 1,165 million. With Tencent is committed to promoting management platform, LiCaiTong, and such a vast user base, our products information inclusiveness by enabling by making insurance services accessible have evolved from social networking barrier-free information access across all through Weixin and QQ to enhance our tools to lifestyle applications. Tencent our products and services, allowing users customer experience. is committed to building connections to enjoy the benefits of technology. between people and people, people and things and people and services, to offer Leveraging our smart marketing system Tencent strives to ensure everyone a more enjoyable, smart and inclusive Tencent In, we have been able to create has barrier-free and equal access to way of life for all through its products and valuable connections between brands and information, under any circumstances and services. users and drive business growth. regardless of their physical condition or age. We published the Anti-Deception for 2019 marked the 20th anniversary of QQ. Tencent has also introduced multiple the Middle-aged and Elderly Users White Throughout the years, QQ has grown online collaboration tools, such as Paper to educate groups of vulnerable with our users and is still progressing to the enterprise solution WeCom, users against spam and cybercrimes. becoming the platform-of-choice for young video conferencing solution Tencent users. We have included features to enhance We introduced and continue to enhance Meeting, online document collaboration users’ communication experience and their QQ and Weixin’s accessibility features. tool Tencent Docs, cloud storage ability to express their personalities. We also established a barrier-free social service Tencent Weiyun, corporate platform for disabled users and designed cloud application Tencent Lexiang, Apart from QQ, our users can share accessibility products for public services, collaborative platform Tencent Agile content with their friends through Weixin’s transportation and games. Additionally, Product Development (TAPD) and code Top Stories function; read news on our “Tencent Cloud for Visually-impaired development tool TGit. These tools Tencent News in their spare time; enjoy Developers” project provides technology cover a broad range of office scenarios. vivid online video and on Tencent and resources to help visually-impaired The number of daily active accounts on Video and QQ Music; capture precious people integrate into the information age Tencent Meeting exceeded 10 million moments and share them on WeiShi; and and realise their personal value. within two months of launch, making it sing karaoke with their friends on WeSing. the most used video conferencing app in China. As of May 2019, WeCom had seen more than 4.5 million applications and had more than 17,000 partners.

Broadening the Horizon

Every day, over one billion users exchange around 10 billion messages on Weixin and QQ. WeChat Pay, Official Accounts, Tencent News and Tencent Games have all played an important role in making daily life more convenient and enjoyable, as well as increasing access to information. Adhering to the principle of “creating The QQ 20th Anniversary “Space Penguin” limited edition figure user value in everything we do”, Tencent Tencent Holdings Limited Corporate Social Responsibility Report 2019 29

Case Study

Offering Inclusive Technology to the Visually-impaired

As Internet technology has developed, an increasing number of visually-impaired developers have created products to meet the demands of their peers. However, they are often faced with technology and resource constraints. On the International Day of Disabled Persons on 3 December 2019, we partnered with the Accessibility Research Association to launch the Tencent Cloud for Visually-impaired Developers program, providing technical support and resources, including our AI and cloud capabilities, to visually-impaired developers. We have also established a platform for technology and resource sharing to expand our product application scenarios in view of benefitting a larger group of visually-impaired users. By the end of 2019, many products had been developed with the support of Tencent Cloud.

Bringing Out the Positive Values Rewarding Good Content who simply enjoy sharing their works with of Games friends. Weixin is committed to inspiring and protecting its users’ creativity and The love of games is natural and can QQ, Weixin, Tencent News, Tencent the lifeline of content that constitutes the be a powerful source of empathy and Video, WeiShi: These social and content Weixin lifestyle. creativity. In the digital era, e-sports platforms are more than one-way has transformed into an industry, as communication channels. They are co- On the Weixin platform, users are both well as become a meaningful social creation spaces responding to the desire the audience for and creators of content, occasion and cultural medium. The of users to express themselves. Content forming a thriving community that flourishing of e-sports was driven by creation is an important part of online increases the visibility of valuable content online games, which have facilitated lifestyles and our mission is to ensure all and services for all to enjoy. emotional connections and interaction content communicates good values and between people. Online games have receives the recognition it deserves. At the end of 2019, Weixin brought also made cultural heritage accessible together its four products, namely Official as a digital artistic experience, playing QQ Personalised Open Platform Accounts, Mini Programs, Mini Games a role in the conservation of traditional Over the past 20 years, QQ has become and Emoticon, into the Weixin Maker culture. In addition, games have proven more than a social application. It is a Program, creating an integrated platform to be effective in youth education and for platform for users of all ages to express for developers and creators to showcase increasing environmental awareness. In themselves. During the 2019 Tencent original works and their creativity. the future, Tencent Games will continue Global Digital Ecosystem Summit, QQ towards its vision, “Spark More”, which is announced a new social strategy, making Weixin recognises the importance to unleash the positive impact of games available its product, data and traffic of intellectual property protection as on its users and the world. capabilities, and joining hands with much as it supports content creation. content creators, community operators Throughout 2019, Weixin provided over In March 2019, Tencent elevated its and technology developers to enhance its 300,000 leads to brand rights holders as a functional games strategy to what is content ecosystem and meet the evolving way of reporting potential infringements. now called the “Pursue Your Dreams” demands of its users. Our Official Accounts platform has also program. The purpose of the program is flagged more than 315,000 Official to reshape the values portrayed in games Weixin Maker Program Accounts and Mini Programs and and explore the application of games Behind the volume of MAU on Weixin and removed more than 100,000 articles for cultural conservation and exchange, WeChat, there is a group of individuals that constituted intellectual property technology education, charitable works with immense creativity. They could be infringement. To handle copyright and public welfare. By the end of 2019, professional writers for Official Accounts, complaints, the platform pioneered a more than 20 functional games had been developers of Mini Programs or Mini deliberation panel to protect the rights of launched under the program, reaching a Games and emoji creators; they could also the original content creators. total of over 20 million users. be writers, illustrators and photographers Tencent Holdings Limited 30 Corporate Social Responsibility Report 2019

Case Study

Mini Programs Youth Camp

On 15 July 2019, the first Weixin Mini Programs National Youth Coding and Creativity Camp was held in partnership with the Affiliated Middle School of Guangzhou University. Just over 100 junior high school participants were selected from over 700 applicants to join the camp under the theme of “Generating Value through Creation”. The students, aged 13 on average, enjoyed their first coding experiences by participating in group trainings, submitting proposals and developing and assessing products. The winning team received RMB180,000 in cash from Weixin, as well as a 48- hour coding and creativity tour to further explore the world of coding.

Tencent News ConTech Partners Creating Smart Living Smart Healthcare Program Together Promoting healthy living is a core In the digital era, the role of users has objective of our “Tech for Good” mission. been evolving from content consumers As the integration between the digital Leveraging digital technology, we are to prosumers, those who are engaging and physical worlds deepens, industries working to increase the vitality of the with content and at the same time are striving to digitalise quickly. Different healthcare industry chain by helping participating in the creation of new digital from the Consumer Internet, the health service departments and assisting horizons. Industrial Internet covers every part of hospitals and doctors, as well as serving the supply chain, including design, R&D, patients and the general public. The Tencent News ConTech Partners manufacturing, assembly, distribution Program invites user participation and services. Only when each component Tencent Medipedia is a medical across three areas: The Tencent News becomes fully digitalised and the entire information platform we launched Knowledge Officer Program focuses value chain is connected, can we enhance in 2017, containing entries on over on providing insights on news topics, efficiency and pursue industry upgrading. 8,000 common diseases and in-depth clarifying rumours, sharing fun facts and As the digital assistant of all industries, knowledge of 50 types of illnesses. We teaching skills using short videos; the Tencent works closely with our partners to are regularly improving it to achieve our Stars Program supports in-depth and promote digital upgrading across sectors. aim of enhancing the degree of medical timely reporting and video production; knowledge among the general public and and the TOP Program commissions As the digital economy continues to mitigate the distribution of misleading content creators to develop works for transform from the Consumer Internet to health information. We are also working certain verticals. the Industrial Internet, a growing number with the relevant authorities and media of our users have begun assuming organisations to further educate the Tencent intends to invest RMB1.5 billion additional roles, not only acting as public. to boost user traffic, leveraging value- consumers but also as manufacturers added services, incentive schemes and and service providers. Given this, we Acknowledging the pain points of product commercialisation to support remain committed to our roles as a the current outpatient care system, knowledge-based content creation, Connector, Toolbox and Ecosystem Co- characterised by prolonged waiting discover up-and-coming content creators developer to help industries, including times for consultations and medicine and recognise those already established. healthcare, education, transportation, and difficulties in obtaining the right tourism, retail, energy management and treatment, we have helped hospitals public administration, fast-track their improve their operational efficiency and digitalisations. Tencent Holdings Limited Corporate Social Responsibility Report 2019 31

the patient experience through various Smart Education using Tencent Smart Campus. We electronic solutions. For example, as of have also started partnerships with 300 Emerging technology has opened up new government departments and over November 2019, direct consultations and possibilities for education, transforming 70,000 organisations within the education medicine payment services, supported classrooms from physical learning spaces industry. by Weixin Medicare Pay, had reached to livestreaming studios. To drive the over 500 million of the users covered by upgrading of the education sector, Additionally, we have applied our the state medical insurance plan. As of we have been focusing on building digital content capabilities to different connections, improving content offerings September 2019, Digital Healthcare Cards educational scenarios to facilitate and leveraging our technological had been launched in more than 300 teaching and learning, thereby promoting capabilities to achieve an equal, hospitals across 10 provinces and cities an effective allocation of education personalised and intelligent educational and used more than 10 million times. resources. For example, our high- experience. Nearly 10,000 hospitals and pharmacies resolution livestreaming capability across some 200 cities have begun using improves the video quality of online By providing a range of intelligent classes, bridging students and teachers Digital Social Security Cards and Digital services, covering data connections, through a stable virtual classroom; our Healthcare Cards, saving 300 million teaching, research and management, AI homework assessment tool evaluates minutes of queuing time. Tencent Smart Campus has helped students’ learning outcomes by reviewing schools, educational institutions and their homework; and with Tencent’s To promote the long-term development administrative departments connect data image identification technology, parents and implement dynamic management of the medical health industry, we have can easily guide their children’s studies. also collaborated with industry partners to techniques. Using a single Weixin Campus Card, students are able to enjoy establish the Digital Medical Innovation Tencent has created innovative curricula, various services, such as receiving and Alliance. The purpose of the Alliance including coding for children, AI and big sending notifications, paying bills, making is to drive innovation in technology, data. As of September 2019, Tencent administrative inquiries and networking applications and cooperation models in Education had served a total of 400 with other students. the medical and healthcare field, in view million users. With more than 100,000 courses, we have enabled over one million of co-developing a new and mutually- As of September 2019, more than people to study online every week. We beneficial digital healthcare ecosystem. 18,000 schools, including over 400 believe that access to Internet learning higher education institutions, were opens the door to equality in education.

Case Study

Tencent Education MEET EdTech Innovation Summit

On 4 December 2019, Tencent initiated the first MEET EdTech Innovation Summit, inviting nearly 1,000 experts, academics and representatives from the education sector to explore how cutting-edge technologies such as cloud computing, AI, big data, the Internet of Things, 5G and blockchain will accelerate the modernisation of education. Tencent’s first MEET EdTech Innovation Summit

At the summit, we announced two major education strategies. One was the launch of the Tencent WeLearning smart education solution to service administrative departments, teachers, students, parents and educational institutions; the other was a plan to increase the digitalisation level of campuses, establish an open and student-centric educational ecosystem, provide educational resources for 100 poverty-stricken counties, create 1,000 model smart schools and cultivate 10,000 campus Chief Information Officers. Tencent Holdings Limited 32 Corporate Social Responsibility Report 2019

Smart Transportation Smart Cultural Tourism We have also brought convenience to outbound tourism. For example, we To create a convenient, safe and To make travel easier and more enjoyable, joined hands with the government of comfortable transportation experience, we launched a smart tourism initiative to Helsinki in Finland to create the My we are committed to promoting the enhance tourists’ travel experiences via Helsinki Mini Program, delivering a digitalisation of the transport industry their smartphones. localised travel experience for Chinese by establishing a people-oriented visitors to the city. smart transport ecosystem powered by For example, we established the Go- intelligent technologies and ecological Yunnan platform as part of the initiative. Smart Retail service models. Leveraging the Internet of Things (IoT), cloud computing, big data, AI and other The digital era has not only broken down In the field of self-driving technology and technologies, the platform is comprised of the boundary between online and offline cooperative 5G vehicle-infrastructure a tourism big data centre, a comprehensive consumption, but also created more systems, we have leveraged our service platform and an integrated personalised and convenient shopping technological advantages in cloud management system, all to create a smart, experiences for customers and eliminated computing, simulation tools and high- healthy and convenient provincial tourism the distance between brands and definition maps to launch the Tencent ecosystem in Yunnan. As of February 2020, consumers. Our customer-centric smart Autonomous Driving Simulator. The the Go-Yunnan platform had been used retail solutions have enabled a diverse simulator provides a high-fidelity virtual 130 million times by the public. It had also range of customer touch points and the environment to test auto-driving systems, attracted nearly five million users to its development of digitalised services, increasing R&D efficiency. mobile application and over four million to making retail operations more intelligent its array of Mini Programs. and efficient. Regarding public transportation, as of May 2019, the Tencent Transit QR Code We also collaborated with the Yunnan Leveraging our competitive advantages had been adopted in more than 110 provincial government to promote the in traffic volumes, data, technology and cities, including , and integrated development of culture ecosystem resources, we have woven Kunming, serving the over 70 million users and tourism in the region. Tencent’s unmanned customer service, voice who take buses, subways and other forms multitude of business lines across games, recognition, electronic price labels and of public transport. animation and comics, videos and music facial-recognition payment systems joined forces to tap digital tools like QQ into the retail industry chain, enhancing and Mini Programs to enrich the travel operational efficiency and improving the experience of visitors to Yunnan. user experience.

Our socially-focused Mini Programs allow merchants to establish omni- channel business platforms. In 2019, Mini Programs accounted for more than 300 million daily active users and generated a total transaction volume of RMB800 billion, an increase of 160% compared to the previous year. The primary source of growth came from the e-commerce and retail sectors.

We launched the Weixin 8.8 Smart Life Day 2019 campaign between 1-8 August, which welcomed tens of millions of participating merchants and stores across the food, healthcare and pharmaceuticals, Yunnan Tourism Ambassador Yunnan Yun Tencent Holdings Limited Corporate Social Responsibility Report 2019 33

fashion, retail and logistics industries. official evaluation report regarding online launched the 2019 China Green Smart Weixin 8.8 Smart Life Day is an occasion public services, Guangdong province had Property Development Whitepaper with for customers to experience new retail the highest index of digital capabilities the National Standardisation Technical technologies, including electronic in China in 2018. Digital Guangdong is Committee for Digitalisation of Intelligent receipts, facial-recognition payment one of the best examples of Tencent’s Buildings and Residential Areas. Through systems and QR code orders, sharing in commitment to promoting a digital our subject matter research, our aim is to the benefits of technology. government. clarify the definition of a smart community across multiple dimensions, including Smart Energy In 2019, our experience with Digital green ecology, carbon emissions, energy Tencent Cloud has launched RayData, a Guangdong was replicated in other efficiency, digitalisation and the degree of big data-powered real-time visualisation regions. On 10 October, we launched smart technology adoption. and interaction system, enabling users a new Mini Program in collaboration to manage and use data in a more with the Jiangsu provincial government, Smart Villages convenient and personalised manner. enabling over 100 public services, The efficiency of village governance is including certificate applications and essential to effective poverty alleviation We have deployed RayData in the pension fund inquiries, to be processed and the long-term development of electricity sector to help power grids online. the rural economy. In view of this, in and develop single digital platforms to 2015 we enhanced our WeCounty manage geographic location information. In October 2019, Tencent’s We Tax project to provide a platform, as well as It also helps businesses leverage data to Refund joined hands with the United various products and services, for the enhance operations and monitoring. Arab Emirates tax refund service digitalisation of village administration. provider, PLANET, to facilitate electronic RayData also launched a smart power tax refunds for Chinese tourists in the WeCounty is a highly-regarded digital supply security system for the 2019 China country. That same month, We Tax village platform, renowned for its International Import Expo in Shanghai, Refund enabled real-time tax refunds in coverage and ability to connect village providing comprehensive energy 88 airports and three international ports stakeholders through its Village Council management and control support for the across 28 countries worldwide, as well and Villager Circle functions, regardless annual trade fair. as tax refund services on-arrival in 27 of whether the members are physically countries and regions. present or far way. Smart Municipal Service Smart Residential Communities Over recent years, Tencent has been Through the WeCounty platform, villagers providing strong support for the Residential communities are the smallest can make their voices heard and local development of a digital city strategy. urban administrative unit. To drive leaders can increase their village’s Adhering to the principle of user- the digitalisation of urban residential working efficiency, thereby helping centricity, we have been working to communities, we launched a multifaceted district governments make more informed integrate traditional public services with solution for community affairs – Future decisions regarding village administration. modern, service-oriented thinking, to save Community. As of October 2019, the peoples’ time and energy when using Future Community platform had 133 With Tencent’s technology, WeCounty has public services. applications serving over 7,000 residential been able to facilitate the participation communities. More applications, such of villagers in local administrative In 2017, we participated in the Digital as IoT, garbage sorting and Tencent affairs, increase dynamism within village Guangdong project and developed Medipedia, will be included in this communities and lay the foundation for the Yue Sheng Shi platform to platform in the future, to provide long-term poverty alleviation work and provide services to the general public, residents with a one-stop service for basic rural vitalisation. enterprises and civil servants. The aim necessities. of the platform was to streamline public administration services, enhance the On 14 October 2019, we held the Tencent business environment and increase Cloud Smart Community Ecosystem administrative efficiency. According to an Conference in Shenzhen, where we jointly Tencent Holdings Limited 34 Corporate Social Responsibility Report 2019

For a Better World Tencent Holdings Limited Corporate Social Responsibility Report 2019 35

As a responsible Internet-based Creating a Better online. Over the past few years, we have technology enterprise, we are Technological Environment remained committed to child protection, committed to promoting the sustainable developing dedicated initiatives to development of society using our safeguard minors while using the Internet; Creating a Healthy Internet products and solutions. In 2019, we we have also created a protection system, Environment launched a variety of CSR initiatives covering research and education, product to create a better technological Tencent has continued to reinforce the design, platform governance and social environment, fight poverty, rejuvenate protection of minors on the Internet, an collaboration. culture, advocate philanthropy and issue that now has widespread support promote a greener future, demonstrating across society. In April 2019, we launched our pledge to build a better world. our inaugural whitepaper about child protection on the Internet. At an Institute of Electrical and Electronics Engineers (IEEE) task force convention on 21 May 2019, we took the lead to launch China’s first standards on protecting minors Tencent Holdings Limited 36 Corporate Social Responsibility Report 2019

Educating children from rural areas on Internet security

Our solutions for a healthy Internet Payment Notification and Online To curb unbecoming behaviour on environment: Consumption System the Internet, we are committed to fully Our monitoring mechanism enables leveraging our technology to create a Parental Guardian Platform the protection system to inform healthy Internet environment through Parental Guardian Platform helps parents if it suspects their children the creation of new functions and rules. parents manage the time and have purchased in-game products. The In June 2019, we added the GVOICE money their children spend on system has served a total of over 10 function to our signature game, “Honour pan-entertainment platforms such as million subscribers and provided free of Kings”, which identifies and reports on Tencent Games, Weixin Mini Games, counselling services to more than 1,720 inappropriate voice messages. Warnings games, Tencent Video and families. or penalties are issued to players who WeiShi. As of April 2020, the platform violate the rules. had served over 30 million users. Encouraging adult players to impose limits on the length of their game sessions Cultivating Healthy Internet Healthy Gameplay System is an extension of our efforts to create Habits Among Teenagers We impose strict time limits on game healthy online gaming habits. We have Tencent places great emphasis on accounts registered by minor users. embedded time limits in a number of cultivating healthy Internet habits among The Healthy Gameplay System has games in the form of a pact with players, teenagers, having launched the Digital been embedded in all the mobile effectively lowering the level of fatigue Natives Actions (DN.A) initiative with games Tencent offers in China, as well and reducing gamer burnout (a situation a range of organisations to provide as in major PC games, covering 98% where a person plays a game for three education, summer camps, open classes of our active users and benefiting 5.6 hours nonstop). As of September 2019, a and parent-child reading opportunities to million minor gamers every day. In total of 27.5 million players had joined this educate young people the appropriate 2019, 32 games which were unable healthy pact, reducing the instances of usage of the Internet. By connecting to incorporate this system were gamer burnout from 300,000 to 130,000. parents and schools, the DN.A initiative immediately withdrawn from the has impacted 500,000 families, providing games market. Tencent Holdings Limited Corporate Social Responsibility Report 2019 37

education about healthy Internet habits, expression for children, as well as conduct Safeguarding Cyber Security helping to assuage parental concerns research on digital marketing, online Over the past 21 years, Tencent Security about the Internet and improving games and related risks concerning child has been committed to providing a safe communications between the older and Internet users. By doing so, we raised and secure Internet experience for over younger generations in this digital era. global awareness about the protection of one billion users. Entering the Industrial minors on the Internet. Internet era, the ongoing digitalisation of We are deeply concerned about Internet companies has brought new challenges safety for teenagers from less-developed On 28 November 2019, we were the to the field of cyber security. Against this regions. On 10 July 2019, we helped only enterprise invited to participate in a backdrop, we are continuously upgrading launch a program dedicated to educating United Nations seminar on establishing our security solutions. We have also set up children from rural areas to avoid obscene healthy Internet habits for children and seven laboratories and formed a team of and illegal content online, helping them combatting cyberbullying. We shared more than 3,000 professionals to develop to unleash their potential and explore the our experience in research, education, strategies that promote Internet security, possibilities of the Internet. platform governance and social leveraging our experience and strengths collaboration. We intended our sharing in technology and ecosystem resources. We also worked with the United Nations to help China and the international Children’s Fund to establish standards community cope with the threats of on Internet privacy and freedom of cyberbullying to minors.

Tencent’s Security Service System: Providing Multifaceted Protection for Businesses

Data security Application security

Cyber security Business security

Tencent’s security service system

Identity security Security services

Terminal security Security management Tencent Holdings Limited 38 Corporate Social Responsibility Report 2019

information leakages. We protected users through fraud detection and prevention mechanisms. The Guardian Program also initiated a range of campaigns to educate people about cyber security and raise public awareness against cyber scams.

Making Available Our Expertise To make our expertise available to more partners, we launched an expert service platform comprised of specialists from our seven security laboratories, offering security management advice and solutions. Supported by security products, The 2019 launch ceremony for Tencent's Guardian Program the platform helps enterprises identify their security needs, as well as plan, Tencent’s Security Capability Communications Standards Association. design, develop, implement and maintain In recent years, we have integrated We have also pioneered the first their security infrastructure. an industrial security strategy into our international IEEE business security risk corporate operations, shifting from assessment standards. Tencent’s threat Nurturing Security Talent detection product is compatible with the a defensive approach to proactive Noticing the demand for talent in the four major operation systems and three planning and security management. In cyber security industry, we began working major central processing units (CPUs) 2019, we unveiled four security products with schools and companies to develop produced in China. covering threat detection, data security, future talent through competitions, access authorisation and cross-platform trainings and certifications. end-to-end security. Our open Building a Cyber Security technology, risk and anti-fraud platforms Ecosystem We organised Tencent Capture The help finance, Internet, government In this digital era where everything is Flag (TCTF) for the third year in a row, and other organisations solve security connected, security risks can become providing a platform for cyber security challenges across the range of new highly complex and difficult to address. practitioners to compete with top-level business scenarios facing companies Tencent believes in a collaborative talent around the world. The TCTF Club is today. approach to tackling the challenge. a technology community for students from We have worked to establish a security over 40 higher education institutions. In Our work in the field of security ecosystem that connects industry addition, we have actively participated in technology research has been referenced partners across the security chain, sharing large-scale competitions on cyber security at top-level international conferences information, technology and expertise to and collaborated with various parties to and gained Tencent wide recognition safeguard the Consumer and Industrial grow more Internet security talents. at home and abroad. As of May 2019, Internets. the Company had applied for over 4,000 Sharing Security Technologies patents related to cyber security, 1,000 of Creating a Safe Internet Environment Tencent has actively explored how to work them having been granted. We are committed to leveraging our data together with our clients to build security analysis and AI capabilities across various laboratories and create synergies along In the face of emerging security scenarios to increase Internet security the industrial security chain. We organised challenges, setting standards is an levels. the Tencent Security Exploration effective approach to promoting the Conference (TSec) for three consecutive development of the security industry and In 2019, Tencent’s Guardian Program years to share insights on critical enhancing security levels. Tencent is a contributed to cracking down on information security issues and highlight keen advocate in this regard. To date, cyber-based, black-market transactions important technical achievements, in line we have led the development of the first and fraud, drawing from our store of big with our commitment to promote the zero-trust international security standards, data on underground market operations development of security technology in which then became a registered project paired with our AI capabilities. We this era of the Industrial Internet. with the ITU Telecommunication launched a dedicated solution to curb Standardization Sector and China fraud caused by data and personal Tencent Holdings Limited Corporate Social Responsibility Report 2019 39

Building a Global Open Source As of the end of 2019, 70% of our source field of fundamental and cutting-edge Technology Community code was open within the company. We technology, covering a number of critical have also formed 53 technical teams of areas including AI, robotics, quantum Tencent’s Internet engineering over 1,000 core R&D engineers. Our open computing, 5G, edge computing, IoT and technology forms the foundation for source community includes nearly 5,000 multi-media technology. our ongoing work of innovating highly people in total. The outcomes of this popular products. To ensure we are also community of collaboration have been Talent is key to driving technological contributing to the global technology incorporated into a number of critical innovation. In view of this, since 2016 community, we have prioritised open businesses, such as Weixin, QQ and we have sped up our global recruitment source as one of the most important Tencent Video. process and have since welcomed nine strategies on our technology agenda. top-level scientists and engineers. Our Tencent has continued to advance its technology R&D team has more than Establishing an Open Source external open source projects, focusing on 20,000 members. Among them are three Management Office IaaS (Infrastructure as a Service), container fellows from IEEE and a host of academic In January 2019, we established the and cloud native database, big data, AI tenures. Tencent Technology Committee, with and our Mini Programs ecosystem among open source and proprietary cloud other areas. On 20 December 2019, after Supported by ongoing investment technology as two of the major focus launching version 3.0, our inaugural open in research and a strong talent team, areas. In June 2019, we set up the Open source AI project ANGEL became the first our R&D capabilities are continuously Source Management Office to develop from China to graduate from the Linux improving. As of September 2019, we had an open source ecosystem, reviewing, Foundation AI (LF AI), ranking among the applied for over 30,000 patents globally, incubating and nurturing high-quality, world’s top AI open source projects. As over 10,000 of them have since been self-initiated open source projects. of the end of 2019, we had initiated over granted. In terms of the amount of patent 92 external open source projects across applications, we ranked second among To implement our open source strategy, domains such as Weixin, Tencent Cloud, global Internet companies; regarding the we created a coder community and big data, games, AI and security. number of authorised patents, we ranked built an official website detailing the number one among our domestic peers. technology that powers our open source Leading Technological projects. We also hosted a series of Innovation In addition to our research efforts, we activities for participants to exchange are placing emphasis on facilitating As a technology-driven company, we are technological know-how. Within dialogue between researchers and the committed to maintaining a clear focus the Company, we have also hosted general public, business community and on investing in frontier technologies open source trainings and instituted government departments. On 21 October and emerging sectors to generate company-wide open source awards to 2019, we held the seventh annual WE greater value for human society. We encourage a new coding culture. Conference. have built a laboratory matrix in the

Advancing Open Source Projects We require all developer teams within Tencent to make their coding available to other teams to encourage a culture of openness and sharing, as well as standardise our code internally. Enhancing collaboration and communications across teams also reduces the amount of repetitive work in R&D and focuses internal attention towards recognising and enhancing high-quality code. By establishing an open source community, we have successfully promoted the adoption of cloud native technology.

Tencent's inaugural ME Conference Tencent Holdings Limited 40 Corporate Social Responsibility Report 2019

The conference invited seven world-leading scientists to discuss the latest developments in areas such as cell therapy and string theory, inviting the audience to reflect on human beings and the universe through microscopic perspectives. Through the exploration of the life sciences at the WE Conference, Tencent sought to find solutions to heal the sick and improve lives.

In conjunction with the seventh WE Conference, Tencent co-organised the medical-themed ME Conference with the authorised Chinese publication of The New England Journal of Medicine. The first ME Conference was themed The first Tencent Youth Science Festival in 2019 Decoding Life, and gathered medical In 2019, the first Xplorer Prize was given magazine to jointly release the world’s scientists and clinical physicians to share to 50 science professionals from mainland first Youth Science Focus list and launch breakthroughs in the treatment of cancer, China under the age of 45, awarding them a series of short science videos. We depression, AIDS and senile diseases. with a five-year grant of RMB three million also invited world-leading scientists to support their scientific research. and popular science experts, including Fostering Technology Talent Lucy Hawking, David Eagleman, Li With RMB one billion in funding from the Furthering our intention to develop Miao, Charles Czeisler and Tim Urban, Tencent Charity Foundation, as well as technology talent, we launched the for face-to-face discussions with young support from Pony Ma and 14 well-known Tencent Youth Science Program and people on the development of frontier scientists, we set up the Xplorer Prize organised the Tencent Youth Science science. The Tencent Youth Popular in 2018 to award young technology Festival as one of the program’s series of Science Creation Project was launched specialists. The prize is given to those events. to encourage young people to create who have devoted exceptional time and science-related works on the Tencent energy to the fields of basic science and The first Tencent Youth Science Festival content platform and promote scientific fundamental technology, and whose took place on 20 January 2019 in knowledge to benefit more people. achievements have had a positive impact Shenzhen. We collaborated with Science on China’s future development.

Winners of the 2019 Xplorer Prize Tencent Holdings Limited Corporate Social Responsibility Report 2019 41

Poverty Alleviation and Rural Vitalisation

Rural villages are the root of Chinese agriculture. Since its inception 21 years ago, Tencent has been working hard to preserve rural heritage, promote its development and use the power of technology and culture to help villages grow and prosper.

Milestones – Tencent’s Poverty Alleviation and Rural Vitalisation Efforts

1 Explore

Poverty alleviation and rural development has been our focus since Tencent’s inception. Over this period, our work evolved from employee initiatives that contributed monetary and in-kind donations to poverty-stricken mountainous areas to the establishment of Tencent Charity Foundation, marking the emergence of a more organised and diverse poverty 1998-2008 alleviation effort.

2 Experiment

The Sichuan earthquake in 2008 lead to the emergence of Internet-based charity. Tencent also started to promote the development of new villages through initiatives covering cultural conservation, education and e-commerce. Tencent Charity Foundation started the 2008-2015 village vitalisation project in 2009, now known as WeCounty.

3 Mature

“Connection” has become the theme of Tencent’s poverty alleviation efforts and we have taken up the role of digital assistant. On the one hand, we connected the Internet-based charity ecosystem using signature campaigns such as the 9.9 Giving Day. On the other, we brought digital products into rural areas through WeCounty and Wexin Payment to drive 2015-2019 productivity.

4 Restart

Tencent continues to contribute its digital capabilities to rural vitalisation. Tencent is applying its expertise with the Consumer and Industrial Internets to help villages enhance education, healthcare, cultural tourism, agricultural e-commerce and other sectors. We’re also seeking to deploy big data and blockchain technology in village governance to 2019 - establish a new model of village vitalisation. present Tencent Holdings Limited 42 Corporate Social Responsibility Report 2019

Alleviating Poverty with a promoting education, as well as cultural alleviation. In 2014, Tencent Charity People-centric Approach and economic development of counties Foundation worked with Weixin and QQ located in western China. to launch a new fundraising channel, Back in 2002, when Tencent was still a allowing users of these platforms and their startup with only about 100 employees, The Digital Assistant Who Fights friends to make donations together. we donated more than 10 computers Poverty to a primary school located in the Starting from 2015, Tencent Charity impoverished county of Qingyuan in We realised a long time ago that poverty Foundation has been organising the annual Guangdong Province. This marked the alleviation is an arduous task that 9.9 Giving Day, connecting charitable start of our approach to poverty alleviation requires community participation and organisations, corporates and netizens to and rural vitalisation. collaboration. After the 2008 Wenchuan Earthquake in Sichuan province, we build an efficient, transparent and precise Internet-based donation ecosystem. 9.9 In 2007, Tencent Charity Foundation, launched an online fundraising channel Giving Day has played an important role in China’s first philanthropic foundation and received over RMB20 million in mobilising the wider society and pooling established by an Internet company, was donations within a short period of time. together funds for poverty alleviation. founded to carry forward an agenda to This also marked the establishment of the support education, fight poverty and Tencent Charity Platform. 9.9 Giving Day has attracted increasing foster other charitable organisations. Considering disasters such as earthquakes public participation since its inauguration in 2015. In 2019, 30 provinces and Over the past 12 years, Tencent Charity and snowstorms, Tencent Charity municipalities across China joined hands Foundation has been committed to Foundation developed a “multifaceted with charity associations to fight poverty, poverty alleviation with a focus on six disaster relief” mechanism to call for receiving 46 million donations within just major areas, namely rural vitalisation, emergency help from the wider society. three days. disaster relief, targeted poverty reduction, The mechanism has been utilised 11 times education, healthcare and ecological from 2008 to 2014, receiving donations As of 31 December 2019, Tencent Charity restoration. As of 31 December 2019, totalling over RMB75 million and RMB69 Platform had supported more than 10,000 Tencent Charity Foundation had donated million from Tencent and Internet users, charitable organisations and raised funds RMB2,957 million, 95% of which went to respectively. for over 70,000 projects. Over 300 million poverty alleviation. Given the spread of the mobile Internet netizens had donated more than RMB7.6 billion via the platform, 92% of which In the context of poverty alleviation, and rapid growth of social media, went to poverty relief, supporting industry we have been committed to using the development of Internet-based development, healthcare, education, a people-centric approach, placing philanthropy has also started to speed up, ecology and culture. emphasis on the wellbeing of people making it an important force for poverty from rural areas. Tencent Charity Foundation has been donating money to poverty-stricken villages for many years to help disadvantaged children and improve the quality of education.

This people-centric poverty alleviation philosophy is also well reflected in our rural vitalisation program launched in 2009. From 2009 to 2014, Tencent Charity Foundation contributed more than RMB50 million to impoverished areas in Yunnan and Guizhou provinces,

Tencent 9.9 Giving Day has played an important role in mobilising society to fight poverty. Tencent Holdings Limited Corporate Social Responsibility Report 2019 43

Tencent Charity Platform not only symbolic value of relevant agricultural Our approach to supporting education in supports philanthropic organisations products and attracts more customers. rural areas has also evolved from donating to raise funds via the Internet, but also money to leveraging our technological provides various resources, such as In addition, WeCounty Manager strengths to fight poverty. For example, content and traffic data, to help raise epitomises the program’s ability to we launched Digital Natives Action (DN. public awareness about charitable attract talent to return to rural areas. A) to cultivate healthy Internet habits programs that help to fight poverty. For example, when Dapo Village of among young people. We also promoted Fenghuang County, Hunan province, smart education products and services for While fighting poverty, Tencent Charity was connected to WeCounty, Yang schools located in impoverished areas. Platform also strives to enhance public Ting helped familiarise her father with In Cangyuan County of Yunnan province, understanding about the causes and the Internet. Yang Ting then became a over 5,000 children have attended conditions of rural poverty, to build a WeCounty Manager. In March 2019, she programming courses provided by closer connection between cities and became a civil servant and was given a Tencent Coding. villages. post within the village administration. Over recent years, Tencent has been Unleashing the Inner Strength of Empowering Rural Villages exploring the possibility of using AI to Rural Areas Through “Connection” tackle the development issues facing rural Through years of poverty alleviation work, The exploration of WeCounty has always areas. Our award-winning proprietary we have realised that for rural villages to been in line with the development of the agricultural AI system helps farmers eliminate poverty and prosper, their inner digital era. Over the past few years, given increase productivity and make better strength has to be brought out. the increasing Internet penetration rate use of natural resources. We have also in China, different Internet products and strengthened our cooperation with China Based on this insight, we launched services, such as social media, content National Cereals, Oils and Foodstuffs WeCounty, a digital platform providing creation and payments, have reached Corporation and New Hope Group, various Internet technologies and rural areas, sparking various innovative in view of identifying new models to products to address the pain points in poverty alleviation initiatives centreing on promote the sustainable development of village management, such as village “connection”. rural areas. administration and culture vitalisation. One of these innovative initiatives aims Over the two decades of Tencent’s As of 29 February 2020, 15,176 villages to increase the consumption of rural history, we have always been committed (communities) across 2,395 townships, products. In 2019, the widespread to a “people-centric” approach to fighting 215 cities and 29 provinces had joined adoption of WeChat Pay prompted the poverty, fully leveraging our resources WeCounty, representing a total of more development of China’s rural e-commerce and capabilities in the field of technology than 2.15 million villagers. industry, enabling villagers to reach and culture to connect villages with the consumers from cities in a more efficient, outside world, all in view of unleashing the The Positive Effect of WeCounty convenient and precise way. Our social inner power of rural areas. This is the key strategy of Tencent’s poverty alleviation Young workers who left their hometown and content platforms, including Tencent work. villages can now express their thoughts News, Weixin, WeiShi, and Tencent Live and feelings via WeCounty and stay in Broadcasting, worked with technology touch with their families and communities. developers and content creators to help Rejuvenating Traditional The platform also enables villagers to be villagers sell their agricultural products. Culture with Digital more involved in rural affairs. We also leveraged the power of content Technology and our platform capabilities to enhance public awareness and understanding Through the WeCounty Official Account, Through Tencent’s “Technology + about rural areas. By connecting villages Weixin users can explore and understand Culture” model, we are making creative with the broader world, we aim to achieve the stories of rural villages and learn use of digital technology to rejuvenate sustainable progress in poverty alleviation. more about the people living there. It traditional culture in the modern context also highlights the regional features and and help foster the development of a digital culture in China. Tencent Holdings Limited 44 Corporate Social Responsibility Report 2019

Rejuvenating Traditional Culture In 2019, Tencent launched the Mr. Bowu Regarding cultural conservation, Tencent’s in Modern Society open platform and stepped up efforts to Digital Culture Conservation Platform promote the digitalisation of museums. has formed strategic partnerships with Meaningful dialogue between traditional Mr. Bowu collaborated with 280 museums numerous cultural institutions, including culture and modern society requires across the country, providing audio guide the Palace Museum, Dunhuang Research a popular connection point. Popular services to more than two million viewers Academy, China Foundation for Cultural Intellectual Property (IP) is just that. A and digitalising more than 30,000 exhibits. Heritage Conservation and Emperor portion of our e-sports-related intellectual In addition, we launched the Global Qinshihuang’s Mausoleum Site Museum. property, such as Honour of Kings, QQ Digital Museums for National Treasures We are helping these institutions create Dance, Moonlight Blade and Dungeon program, which digitalises China’s unique cultural preservation solutions, and Fighter, have cooperated with national treasures located in overseas using innovative and interactive methods museums and cultural institutions in China museums for people to appreciate using to engage the public in the work of to introduce traditional cultural elements a variety of channels, including the Mr. cultural conservation. to in-game activities and design, thereby Bowu Mini Program. promoting China’s intangible cultural heritage to the public.

Case Study

A Digital Palace Museum

In July 2016, Tencent and the Palace Museum formed a partnership. Within three years, they had successfully achieved the integration of traditional culture with digital creativity, encompassing online games, animation and music. More than 10 cultural projects with considerable impact have been launched. In September 2019, Tencent and the Palace Museum deepened their partnership, through which some 100,000 cultural items will be digitalised using cloud computing and AI technologies, as part of the effort to establish a Digital Palace Museum.

The Great Wall Conservation Project

Tencent and the China Foundation for Cultural Heritage Conservation co-launched The Great Wall Conservation Project. To date, the project has donated a total of RMB35 million for the purpose of renovating the Great Wall of China. We have also launched related Mini Games, picture books, HTML5 content and documentaries to refresh the attractiveness of this great heritage site. Tencent Holdings Limited Corporate Social Responsibility Report 2019 45

Promoting Urban Heritage with distributed, including Chinese music, Mobilising the Public to Digital Content animation, literature, movies, games and Participate in Philanthropic e-sports. For example, The Wild Goose Tencent has collaborated with various Activities Lake – co-produced by Chinese cities in different regions to – was the only Chinese-language movie Tencent believes philanthropy transcends identify their most impressive features. that competed at the 2019 Cannes donations and charity projects. Behind The idea is to introduce high-quality International Film Festival; and Arena each charitable cause is a drive to unlock digital content and proven business of Valor has been included in the Asian peoples’ compassion through a rational models to urban spaces while offering Games competition. approach that delivers a positive impact interesting cultural experiences to the to society. Using our strengths and urban dwellers living therein. In January capacity for innovation, we can take the 2019, the Tencent Digital Creative Festival Building an Innovative lead to drive innovation in Internet-based was launched in Chengdu, attracting more Philanthropy Ecosystem on philanthropy and establish a new than 100,000 offline visitors. the Tencent Platform ecosystem.

Sharing Chinese Culture Abroad Tencent Charity Foundation has Tencent is committed to exploring the positioned itself as a digital assistant to Through the Internet, Tencent has possibilities of technology to tackle philanthropic activities, and is committed exported digitalised Chinese cultural problems through philanthropy. This has to its roles as Toolbox, Connector and content to the rest of the world, helping become an important part of our CSR Ecosystem Co-developer. After the to promote cultural exchange. A wide research and practice. range of digital content has been 2008 Wenchuan Earthquake in Sichuan

The Tencent Charity Platform ecosystem

As of the end of 2019, the platform had received

300 million donations Total donations Donations; behavioural As of the end of 2019, amounted to charity; communication; there were more than supervision; more than Users, Charitable 10,000 Public feedback; disclosure; organisations RMB7.6 donation certificates charitable organisations billion on the platform

Tencent Brand Charity exposure Platform Matched and donations recognition Approximately RMB1.4 billion As of mid-September donation was generated from 2019, more than 2,500 9.9 Giving Day enterprises had contributed matching Tencent Participating funds Charity enterprises Foundation Tencent Holdings Limited 46 Corporate Social Responsibility Report 2019

introducing independent audits, random sampling inspections and external supervision, to increase the transparency of fundraising activities. We also launched a cool-off mechanism to remind donors to use a rational approach to participating in philanthropy.

By the end of 2019, Tencent Charity Platform had received 304 million donations from Internet users, totalling RMB7.6 billion and benefitting more than 60,000 charity projects initiated by nearly 10,000 charitable organisations. 9.9 Giving Day 2019 encouraged Internet users to participate in philanthropic activities The projects covered poverty alleviation, disaster relief, medical aid, education province, Tencent Charity Foundation initiatives, such as donating steps walked support, ecology protection and cultural established the Tencent Charity Platform, and points earned in games to charitable conservation. Among them, projects receiving the most monetary donations of causes. related to poverty reduction accounted any Internet-based fundraising platform at for 90%. the time. In 2015, Tencent Charity Platform launched the inaugural 9.9 Giving Day, 9.9 Giving Day 2019 Highlights The mission of the Tencent Charity joining hands with experts from different million participants Platform is to build trust through industries and hundreds of millions of 48 technology, promoting the development Internet users to participate in online and of the philanthropic sector. Supported offline philanthropic activities and raise RMB1.783 billion by our mobile Internet technology funds for tens of thousands of charitable donated via Tencent Charity Platform and social media capabilities, Tencent programs. In 2019, the fifth 9.9 Giving Day RMB399.99 million Charity Platform is a social, mobile attracted 48 million monetary donations in matching funds from Tencent and transparent terminal connecting within three days, totalling RMB1.783 public service departments, charitable billion. With RMB307 million and RMB399 RMB307 million organisations, the public and enterprises. million in matching funds donated by in matching funds from enterprises It strives to create an inclusive more than 2,500 enterprises collectively Total funds raised: philanthropic ecosystem by using a more and Tencent Charity Foundation, rational approach. respectively, the total amount of monetary RMB2.49 billion donations reached RMB2.49 billion. The Tencent Charity Platform allows for different influence of 9.9 Giving Day has also While supporting charitable organisations forms of donations, such as single-time expanded to communities. In 2019, more to raise funds via the Internet, Tencent donations, monthly donations, offering than 3,000 philanthropic organisations Charity Foundation also launched an one-on-one help, sending well wishes, and held over 10,000 offline activities during initiative in 2018 to support philanthropic family donations, all in view of encouraging 9.9 Giving Day, covering communities and partners by offering various products, the public to make small donations as business districts in over 200 cities. platform data, funds, resources and part of their support for philanthropic training. activities over the long-term. We welcomed While working to promote an inclusive enterprises to provide “matching donations” philanthropic ecosystem, we have also First, RMB100 million was set aside to to supplement netizen’s contributions, and put emphasis on building “a rational support the development of charitable embedded new functions on social media approach to charity”. Tencent Charity organisations, in addition to efforts to platforms that allow family members, friends Platform has set stringent examination help each organisation gain exposure, and colleagues to donate together. Tencent standards and information disclosure receive training on Internet-based charity Charity also launched innovative donation requirements for charitable organisations, and obtain communication resources Tencent Holdings Limited Corporate Social Responsibility Report 2019 47

from media organisations. Second, efforts culture, the spirit of philanthropy and Blockchain + Charity were made to help charity groups boost Tencent’s culture. As of December 2019, To help homeless and missing children their efficiency by leveraging various more than 200 teams had submitted reunite with their families, Tencent’s Tencent capabilities, such as WeCom, a total of 392 proposals as part of the TrustSQL blockchain solution launched cloud computing, advertising, big data scheme, 49 of which were shortlisted. In the Charity Chain for Searching Missing and blockchain. Lastly, third-party auditing December, the first batch of 17 charitable Persons in 2019. The solution connected institutions were developed to help Mini Games were launched online. with a number of Tencent’s platforms to build a rational and transparent charity maximise the chances of finding missing ecosystem among philanthropic partners. In 2019, we launched two mobile games, children within the first 72 hours. Measures such as an entry threshold, designed to promote care for the visually information disclosure, supervision and impaired. Using an entertaining and With the help of the Internet and other evaluation standards were introduced. interactive approach, the games raised forms of advanced technology, QQ Help awareness about barrier-free information, is a charity platform that leverages a The Create for Good charity as well as helped visually impaired people network of QQ users to look for missing advertisement competition co-organised integrate better into society. children, missing elderly and donors of by Tencent Charity Foundation and rare blood types. As of 12 April 2020, Tencent Ads is an example of how we are AI + Charity QQ Help had posted 807 cases involving committed to building a philanthropic AI is opening a wide range of new missing children, 660 of which have been ecosystem. In 2019, using an operating possibilities for our future. In the closed; 449 cases involving missing elderly mechanism that brings together the fields of healthcare and elderly care. people, 168 of which have been closed; power of innovation, philanthropy and Underprivileged groups, such as the and 171 cases involving donors of rare technology, the third Create for Good disabled, left-behind children and blood types, 164 of which have been charity advertisement competition empty-nest elderly, can benefit from closed. The platform has also helped continued to improve the creativity the development of AI technologies, settle five cases that involved the use of of the philanthropic sector in China including voice and visual identification facial recognition technology. and increased public awareness about and smart analytics. charitable projects. Community of Philanthropy for Tencent Medical AI Lab launched an the Technology Sector Using Technology to Push the AI-assisted technology to shorten the The integration of technology and Boundaries of Charity diagnosis time for Parkinson’s Disease philanthropy requires cross-disciplinary Tencent Charity owes much of its rapid to just three minutes, while increasing collaboration. On 16 May 2019, Tencent growth over the past decade to the the accuracy. The system can also help joined hands with various partners in development of the Internet and social provide better assistance for mid- and organising the Third China Internet media. Bringing into view our role as late-stage Parkinson’s patients to manage Philanthropy Summit in Guangzhou, held a “Connector”, we are committed to their illnesses and enhance their quality of under the theme of “Rational Charity; pushing the boundaries of philanthropy life. Tech for good”. The summit presented 60 by integrating charity with games, AI, case studies, highlighting issues related to blockchain and Tencent Cloud. Tencent’s AI-powered medical solution, technology and charity, as well as offered Tencent Miying, has launched an ways to address them. Through hosting Games + Charity AI-supported auxiliary diagnostic system the summit, Tencent formed a new Tencent has been exploring the practical that enables gynaecologists to quickly exchange platform between its businesses value of online games in the realm of identify cervical transformation zones, and various social organisations to charity, in view of making online games a diagnose cervical intraepithelial neoplasia drive the development of a diverse medium that promotes positive values. (CIN) and locate lesions. and sustainable Internet-based charity ecosystem. We launched the WeCare Program to Tencent YouTu Lab has unveiled an AI support the developers of charitable Mini sign language translator designed for Games, with the aim of exploring and people with hearing disabilities. The highlighting the values of online games device enables the real-time translation of in the context of promoting traditional sign language into written text. Tencent Holdings Limited 48 Corporate Social Responsibility Report 2019

On 9.9 Giving Day in 2019, Tencent charity thanks to Tencent’s smart building Creating Green Communities representatives and fellow technology operating system. This IoT-enabled Through Technology companies, including Alibaba and Sina, next-generation system is designed Pollution control and environmental joined delegates of the Bill & Melinda to support a variety of scenarios, and protection is an urgent task that calls for Gates Foundation and Stiftung Mercator, provide a wide range of services, everyone’s attention. As an Internet-based as well as specialists from Beijing including the interconnection of facilities, technology company, we leveraged Normal University and China Agricultural building management and digital services our strengths in communications and University, on a panel to share their to connect hardware and applications. took it upon ourselves to increase insights about how to form a philanthropic Users can visualise on a single screen all people’s awareness about environmental community among Internet companies, relevant operational information, such protection, mobilising the public to create as well as how to contribute Chinese as lighting, air-conditioning, ventilation green communities. experience to the global development of and monitoring systems. Property Internet-based philanthropy. management work can be carried Garbage Sorting out anytime and from anywhere via While major cities in China have been For a Greener Future computer and mobile terminals. Based piloting garbage sorting, Tencent on the number of people in a certain initiated a campaign with China Central Tencent is committed to green area of the building at a given time, Television (CCTV) using augmented reality operations. Using big data, cloud the system is also able to adjust indoor (AR) technology, allowing participants computing and AI, we have developed temperatures, lighting intensity and to scan their garbage and learn about a variety of green solutions to promote even the concentration level of carbon its classification. The campaign was sustainable living, build ecological cities dioxide automatically, thereby minimising connected to an associated QQ Mini and protect the environment. unnecessary emissions. Program to help users sort domestic waste effectively and accurately. Tencent Setting the Bar for Low Carbon The building’s ceramsite pavement helps has also joined hands with Meituan’s 113 Operations manage rainwater storage, purification food delivery merchants across China Carbon emission levels are the most and discharge to ease flooding. Sensors in a garbage sorting initiative whereby direct way to gauge the effectiveness of have been installed to collect data more than 10 million tablemats with waste an enterprise’s ecological measures. On to enable scientific assessments and separation tips were distributed over an annual basis, we submit a third-party optimise the effectiveness of our sponge 30 days, reaching more than 50 million reviewed report on our carbon footprint facilities. people. over the previous year to The Stock Exchange of Hong Kong Limited. In 2019, Saving Energy and Reducing Costs with Protecting Natural Parks Tencent's subsidiary Shenzhen Tencent Our Green Data Centre At China’s “Two Sessions” in 2019, Computer System Co., Ltd emitted In September 2019, Tencent’s biggest Pony Ma, Tencent’s Chairman and CEO, 3,510.87 tons of carbon, compared to data centre, located in Guangming submitted the Proposal on Promoting the 3,758.08 tons from a year ago. Tencent District, Shenzhen, received the 5A rating, In-depth Development of the National Technology (Shenzhen) Co., Ltd, another the highest possible according to the Park System in his capacity as a delegate subsidiary of Tencent's emitted 109,452.99 Data Centre Green Rating system. It was of the National People’s Congress. Mr. tons of carbon, maintaining a relatively the second Tencent building to have Ma believes that reforming the national stable level of emission despite an attained this rating, the other being our park system is not only important for expansion in operations. Shanghai Qingpu Data Centre. eco-conservation, but also concerns the ownership of natural resources and is Smart Green Buildings Tencent’s third-generation Tencent crucial to the sustainable development Tencent Binhai Building, our new Modular Data Center (TMDC) technology of human society. In his proposal, Mr. headquarters in Shenzhen, is a smart, is the green core of the Guangming Ma made three suggestions: first, step green building characterised by a high data centre. It powers the smart energy up efforts to formulate laws that protect level of security and energy efficiency, saving and precision cooling systems that natural reserves and properly manage maximise the centre’s energy efficiency. Tencent Holdings Limited Corporate Social Responsibility Report 2019 49

their land rights; second, invest more We also joined hands with The Nature AI for FEW in maritime national park research and Conservancy and launched two interactive Food, energy and water shortages are implement pilot maritime national park online games to raise users’ awareness the greatest challenges facing the world projects; third, government departments about the importance of afforestation and today. We believe AI can provide strong responsible for managing natural reserves the provision of proper shelters for the support for the sustainable development should take the lead in establishing a reproduction of pandas. Both projects of human society. Given this, Tencent national park big data platform. attracted nearly 10 million participants. proposed the AI for FEW (food, energy We also gained support from well-known and water) initiative in 2019. On 3 Exploring a Greener Future scientists who promoted our projects on April 2019, the United Nations Human Entering the 21st century, the whole social media, effectively raising public Settlements Program and Tencent world is facing an increasingly severe awareness about eco-conservation. co-hosted a seminar at the United environmental and ecological crisis. As Nations’ headquarters in New York, a technology company with a global Wildlife Protection looking at the fundamental challenges perspective, we are actively leveraging Given the persistent problem of illegal confronting the world and how AI may be our capabilities and strengths to find wildlife trade, Tencent has committed used in solutions that move us closer to innovative solutions to address these itself to protecting wild animals. Our achieving the Sustainable Development problems. strategy is divided into three parts. First, Goals. we are using Weixin and QQ to raise Innovative Initiatives to Save the Ocean public awareness about the need for We believe that under the guidance In April 2019, Tencent launched the wildlife protection. Second, we have of good values, the innovation and Ocean Plastic Reduction program, established a reporting and feedback development of technology will lead to whereby we teamed up with marine waste platform, Tencent For The Planet, to breakthrough solutions that have the collection charity groups and offered encourage the public to report cases potential to address our increasingly to remove one piece of waste from the of illegal wildlife trade. As of the end of severe environmental and ecological ocean in the name of each Tencent user 2019, more than 6,000 reports had been problems. As a technology company taking part in the initiative. As of the end filed. Among them, around 2,000 were committed to sustainable development as of 2019, the program had attracted five followed up on and investigated. Third, a core responsibility, we will continue to million participants and 1.5 tons of marine using our capabilities in FinTech, a system look for solutions for a greener future. waste had been collected. for monitoring suspicious transactions has been put in place to prevent money laundering.

We launched the “Wildlife Guardian” campaign to raise awareness about wildlife protection. Tencent Holdings Limited 50 Corporate Social Responsibility Report 2019

Appendix Tencent Holdings Limited Corporate Social Responsibility Report 2019 51

About This Report Reporting guidelines: Access to report: This report was drafted with reference You may download the electronic edition This report marks the eighth corporate to the Guidelines on Corporate Social of this report from Tencent’s website at social responsibility report published Responsibility Reporting for Chinese www.tencent.com, or via the Tencent by Tencent Holdings Limited since Enterprises (CASS-CSR4.0), the CSR Official Weixin Account. For any 2008, covering in detail how Tencent Sustainable Reporting Guidelines of the questions or suggestions concerning understood and approached its social Global Reporting Initiative (GRI) and the the report, please send an email to: responsibilities in 2019. Also included is Environmental, Social and Government [email protected]. a presentation of the Company’s notable Reporting Guide of the Hong Kong achievements in 2019. Exchanges and Clearing Limited.

Period: Data sources: From 1 January to 31 December 2019. The data sources used in this report Select initiatives which were launched include those made public by Tencent or before or after 2019 have also been external organisations. included in this version.

Reliability assurance: Scan the QR code to check the Report scope: Tencent guarantees that there are no false Tencent CSR Official Weixin Account (Chinese only) This report is based on Tencent Holdings records, misleading statements, or major Limited as an entity, including its omissions in the content of this report. subsidiaries and affiliates. Note on terminology: To facilitate a clean presentation and smooth reading, “Tencent Holdings Limited” is also expressed as “Tencent”, “We” or “the Company”. Tencent Holdings Limited 52 Corporate Social Responsibility Report 2019

CASS-CSR4.0 Index

Content CASS-CSR4.0 No.

Messages from the Management Team P2.1-2.2

Tencent Upgrades CSR Management Better Governance G1.1-1.2, G2.1-2.3, G3.2-3.3, G4.1- 4.3, G5.2, G6.1-6.2 Better Communication

Stakeholder Mapping G6.1

Special Report Tencent’s Fight Against the COVID-19 Pandemic P3.1-3.2, M2.7, S4.1, S4.5

For a Better Company Refreshing Our Corporate Culture: Integrating G1.1-1.2, G2.2-2.3 “Tech for Good” into Our Vision and Mission

Safeguarding Governance: Establishing a M1.1-1.3, M1.8, M2.13, S1.1, S2.6 Transparent Governance System

Employee Care S2.1-2.2, S2.4, S2.7-2.18

Charitable Initiatives by Our Employees S4.10-4.11, M2.7

For a Better Ecosystem A New Era on the Cloud M2.1, M2.4, M2.6-2.7

Broadening the Horizon M2.1-2.2, M2.4, M2.7, M2.9-2.12, M2.14, M3.3, M3.5-3.6, S1.5

Rewarding Good Content

Creating Smart Living Together M2.1, M2.4, M2.7, S1.4-1.6, E1.7, E2.4

For a Better World Creating a Better Technological Environment M2.4-2.7, M3.4-3.6, G5.3

Poverty Alleviation and Rural Vitalisation P3.1-3.2, M2.1, S4.12-4.13

Rejuvenating Traditional Culture with Digital Technology M2.1, M2.4, M2.7

Building an Innovative Philanthropy Ecosystem S4.5-4.9, M2.7, M3.4, M3.6 on the Tencent Platform For a Greener Future E1.3, E1.5-1.7, E1.9, E2.2-2.4, E2.9, E2.24-2.25, E3.1, E3.4, E3.6

Appendix About This Report P1.1-1.3

CASS-CSR4.0 Index A5