Climate Change Data

Sanergy Group Limited

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:46,391.08 tCO2e/year
Scope 1 Emissions:13,838.46 tCO2e/year
Scope 2 Emissions:32,552.62 tCO2e/year
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:140,244.24 MWh/year
Water Consumption:1,463,437.00 m3/year
Waste Generated:2,373.09 tons/year
Carbon Intensity:3.01 tCO2e/MT in FY2023

ESG Focus Areas

  • Greenhouse Gas Emissions
  • Air Pollutants Emissions
  • Energy Management
  • Water Management
  • Waste Management
  • Employment Practices
  • Workforce Health, Safety and Well-being
  • Development and Training
  • Prevention of Child and Forced Labour
  • Supply Chain Management
  • Product Responsibility
  • Anti-corruption
  • Community Investment
  • Climate Change

Environmental Achievements

  • Received Preliminary EPD Certification (stage 1) for Graphite Electrodes.
  • Installed PV solar panels on the baking department roof of the Italian Factory, generating an estimated 1,500,000 kWh per year.
  • Reduced total GHG emissions from approximately 49,159.47 MT in FY2022 to approximately 46,391.08 MT in FY2023.

Social Achievements

  • No work suspension or interruptions due to labor strikes or disputes in FY2023.
  • No material non-compliance with relevant laws and regulations relating to compensation and dismissal, recruitment and promotion, working hours, rest periods, equal opportunity, diversity, anti-discrimination, and other benefits and welfare in FY2023.
  • Provided anti-corruption training for approximately 91.5 hours in total to Directors and employees.

Governance Achievements

  • Established an ESG Committee and working group to oversee and manage ESG-related issues.
  • Implemented a whistle-blowing procedure to address concerns regarding irregularities, misconduct, or malpractice.
  • Awarded “Best Listed Company at ESG Advancement Award” and “2023 ListCo Excellence Awards”.

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality by FY2050.
Medium-term Goals:
  • Reduce total GHG emissions intensity from existing facilities by another 10% from FY2027 to FY2032.
Short-term Goals:
  • Reduce total GHG emissions intensity from existing facilities by 10% from FY2022 to FY2027.

Environmental Challenges

  • Market downturn leading to decreased production volume.
  • Expansion of reporting scope to include the newly acquired Shanxi production assets, increasing energy indirect (Scope 2) GHG emissions.
  • Potential regulatory changes related to carbon reduction requirements.
  • Extreme weather events impacting operations and supply chain.
  • Increase in the possibility of blackouts due to climate change.
Mitigation Strategies
  • Developed extreme weather contingency plans.
  • Supplier diversification to mitigate supply chain disruptions.
  • Continuous monitoring of laws and regulations and seeking compliance consulting services.
  • Implementation of measures to reduce GHG emissions.
  • Investing in energy-efficient equipment and renewable energy sources (PV panels).

Supply Chain Management

Supplier Audits: 178 key suppliers audited in FY2023

Responsible Procurement
  • Engaging suppliers from a qualified suppliers list.
  • Prioritizing suppliers with sound environmental management systems (e.g., ISO 14000 certification).

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events (flooding, damage to properties)
  • Supply chain disruptions
  • Blackouts due to heavy load on electricity grid
Transition Risks
  • Higher operating costs due to carbon reduction regulations.
Opportunities
  • Increased demand for graphite electrodes due to the shift towards EAF steelmaking.

Reporting Standards

Frameworks Used: Environmental, Social and Governance Reporting Guide (Appendix C2 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited)

Certifications: ISO 14001, ISO 45001, ISO 9001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Goal 3
  • Goal 7
  • Goal 8
  • Goal 9
  • Goal 11
  • Goal 12
  • Goal 13

The Group's initiatives contribute to these goals through various means, including reducing air pollution, promoting energy efficiency, fostering economic growth, promoting sustainable industrialization, building resilient infrastructure, ensuring sustainable consumption and production, and taking urgent action to combat climate change.

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Best Listed Company at ESG Advancement Award
  • 2023 ListCo Excellence Awards