Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Road and Energy Safety
• Customer Service
• Information Security
• Integrity Construction
• Supply Chain Management
• Employee Rights and Benefits
• Occupational Health and Safety
• Employee Training and Development
• Community Engagement

Environmental Achievements

• Planted 406 trees, bringing the total number of trees planted to 37,074, which removed 852.70 tonnes of carbon dioxide equivalent.
• Total GHG emissions of 6,300.79 tonnes of carbon dioxide equivalent; intensity of greenhouse gas emissions was 3.09 tonnes of carbon dioxide equivalent per million revenue in RMB.

Social Achievements

• Achieved “zero infection target” for all employees during the COVID-19 pandemic.
• Honored the title of “Chengdu Municipal Advanced Primary Party Unit in Flood Control and Disaster Relief”.
• Provided assistance to Gaochan village, including participation in their agricultural products fair and encouraging employee purchases of local products.
• Organized multiple elderly assistance and poverty alleviation activities.
• Young volunteers visited Red Star Primary School to assist children with disabilities.

Governance Achievements

• Successfully completed re-election for the Supervisory Committee.
• Implemented a three-tier prevention system for risk management.
• No cases of corruption, bribery, extortion, fraud, and money laundering were reported.

Climate Goals & Targets

Environmental Challenges

• Decline in annual operating results due to the COVID-19 pandemic and the toll waiver policy.
• Decline in toll income in the expressway segment due to the COVID-19 pandemic and the toll waiver policy.
• Decline in traffic volume on several expressways due to various factors including road renovations and reduced flights at Chengdu Shuangliu International Airport.
• Shrinking demand for refined oil and low prices in the energy segment due to the COVID-19 pandemic.
• Risks related to the renewal or extension of the right to operate expressways.
• Potential impact of competing roads and alternative forms of transportation.
• Fluctuations in the selling prices of refined oil in the energy segment.

Mitigation Strategies

• Implemented cost reduction and efficiency enhancement measures.
• Accelerated diversified business expansion.
• Expanded principal business and explored new growth drivers.
• Established Zhenxing Company to invest in the construction of a Class B expressway service area.
• Acquired 94.49% equity interests in Energy Development Company.
• Won tenders for the operation and management business of Chengdu Tianfu International Airport Expressway and Pujiang-Dujiangyan Section of Chengdu Economic Zone Ring Expressway.
• Established Operation Company to enhance efficiency and reduce management costs.
• Strengthened communication with government and peers to understand road network planning and traffic trends.
• Strove to purchase refined oil at the most favorable price leveraging the Refined Oil Framework Agreement and bulk procurement.

Supply Chain Management

Supplier Audits: More than 500 suppliers assessed based on bidding requirements, quotation, quality, and service.

Responsible Procurement

• Strict adherence to the Law of the PRC on Tendering and Bidding and related regulations.
• Standardized bidding and bid selection procedures.
• Detailed bidding documents outlining requirements for suppliers, including qualification, financial status, and construction performance.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Appendix 27 to the Listing Rules (HKEX)

Awards & Recognition

• Chengdu Municipal Advanced Primary Party Unit in Flood Control and Disaster Relief

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Road and energy safety
• Customer experience
• Information security
• Integrity and anti-corruption
• Supply chain management
• Employee rights and interests
• Employee welfare and benefits
• Employee health and safety
• Professional training and development
• Community charitable activities
• Climate change
• Green development

Environmental Achievements

• Greenhouse gas emissions (Scope 1 and 2) of 7,020.33 tonnes of carbon dioxide equivalent, a decrease of approximately 32% from last year.
• Power consumption of 10,440.91 MWh, a decrease of approximately 26% from last year.
• Water consumption of 78,935.40 cubic metres, a decrease of approximately 23% from last year.
• Total non-hazardous waste of 297.09 tonnes, a decrease of approximately 43% from last year.
• Total hazardous waste of 1,045.10 kg, a decrease of 12% from last year.
• 95% recycling rate of waste pavement, asphalt and other materials.

Social Achievements

• Launched “Double Prevention Mechanism” special trainings to enhance safety awareness among employees.
• Achieved remarkable results in safety knowledge contest.
• Properly handled 588 customer complaints.
• No work-related casualties in the past three years.
• Organised various employee activities, including painting, sports, and Women’s Day celebrations.
• Donated RMB38,123 to charitable undertakings.

Governance Achievements

• Established a well-established ESG system.
• Implemented rigorous anti-COVID-19 measures.
• Formulated various internal control and risk management systems.
• No cases of corruption, bribery, extortion, fraud, and money laundering during the reporting period.

Climate Goals & Targets

Environmental Challenges

• Persistent adverse impact of COVID-19 pandemic.
• Further reduction in toll payment from freight vehicles.
• Decline in traffic volume on several expressways due to various factors (e.g., relocation of flights, construction projects).
• Complex and volatile international energy landscape.
• Competition from other roads and alternative transportation.
• Fluctuations in refined oil selling prices.
• Climate change risks (extreme weather, heatstroke).

Mitigation Strategies

• Optimised management and materialised cost reduction and efficiency enhancement.
• Captured market opportunities and expedited business diversification.
• Implemented various anti-COVID-19 measures.
• Strengthened business operations and sought progress amid stability.
• Renewed operation and management services for Tianfu Airport Expressway and Pudu Expressway.
• Undertook petrol station entrusted management and operation business.
• Expanded operating scale and expedited the development of vehicle charging business.
• Established presence in the battery replacement market.
• Strengthened communications with government and peers to understand road network planning.
• Strove for interest reduction and concession policies and negotiated with banks for lower interest rates.
• Successfully issued ultra-short-term debentures to replace existing high-interest loans.
• Implemented systematic energy-saving measures.
• Formulated measures and plans to guarantee employee safety during extreme weather.

Supply Chain Management

Supplier Audits: 1,113 suppliers

Responsible Procurement

• Strict adherence to the Law of the PRC on Tendering and Bidding and other relevant laws and regulations.
• Formulated Interim Measures for Contract Management and Interim Measures for Bidding Management.
• Assessment of suppliers based on bidding requirements, quotation, quality, and service.
• Review of supplier qualifications (business license, safety production license, etc.) and construction performance.
• Entering into Supervision Contracts with project contractors.
• Formulated undertakings and rules requiring compliance with environmental protection rules and regulations during procurement.

Climate-Related Risks & Opportunities

Physical Risks

• Landslides, flooding, reduced visibility due to extreme weather.
• Heatstroke among outdoor workers.

Transition Risks

• Inability to adapt to stricter national climate-related policies and regulations.

Opportunities

• Development of energy-efficient products and services
• Exploration of new energy sources

Reporting Standards

Frameworks Used: Appendix 27 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

Awards & Recognition

• Exemplary enterprise in expressway maintenance and management (Operation Company).
• “Tianfu Cup” golden prize of construction projects (Chengguan Expressway).
• Five-star labour unions (Company and Operation Company).
• Pioneer team for COVID-19 prevention and control (Chengpeng Expressway).