Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced nitrogen oxides, sulfur dioxide, and dust emissions below national standards.
• Implemented 154 environmental technology improvement projects with a total investment of 288 million RMB.
• Achieved 1.164 billion kWh of waste heat power generation, saving 143,000 tons of standard coal and reducing carbon dioxide emissions by 356,000 tons.
• Reduced sulfur dioxide emissions by 27.2%, dust emissions by 29.4%, and nitrogen oxides emissions by 11.3% year-on-year.
• Recycled over 1,058,000 tons of industrial solid waste.

Social Achievements

• Employs 18,280 people and complies with all relevant labor laws and regulations.
• No safety incidents above a certain level reported.
• Provided various types of relief funds totaling over 1 million RMB to 151 employees in need.
• Conducted various employee cultural activities to enhance employee well-being.
• 4 subsidiaries passed the “Level 1 Safety Standard” on-site review in 2018.

Governance Achievements

• Established a sound internal control system and four committees (audit, remuneration, nomination, and executive committees).
• Complied with all relevant anti-bribery, extortion, fraud, and money laundering laws and regulations.
• Implemented a quality management system and obtained ISO 9001, ISO 14001, and OHSAS 18001 certifications for its cement plants and most ready-mix concrete plants.

Climate Goals & Targets

Environmental Challenges

• Meeting increasingly stringent environmental regulations and emission standards.
• Managing climate change risks and ensuring compliance with related policies.
• Ensuring the effective management of ESG risks.

Mitigation Strategies

• Investing in environmental technology upgrades and implementing energy-saving measures.
• Improving waste heat power generation technology and optimizing production processes.
• Strengthening internal management and utilizing alternative fuels.
• Implementing a comprehensive ESG risk management and internal control system.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Considering factors such as legal compliance, product quality, social credit, and environmental protection.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Hong Kong Stock Exchange's Environmental, Social and Governance Reporting Guidelines

Certifications: ISO 9001, ISO 14001, OHSAS 18001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 2018 Environmental Protection Advanced Unit
• 2018 Provincial Cement Quality Index Comparison Winner
• 2018 Hongchao Technology Cup Cement Chemical Analysis Competition Award
• 2018 Shanxi Zhongxing Cup Provincial Cement Performance Test Comparison Special Award
• 2018 Satisfied Cooperation Unit
• National Building Materials Industry Technological Innovation Second Prize (3)
• National Building Materials Industry Technological Innovation Third Prize (2)
• National Building Materials Enterprise Modernization Innovation Achievement First Prize

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Sluggish cement demand due to pandemic, real estate market downturn, and economic pressure.
• Falling cement prices due to weak macroeconomic environment, pandemic disruptions, and oversupply.
• High costs due to increased coal and electricity prices, and investments in technological transformation for environmental regulations.

Mitigation Strategies

• Refining internal management to enhance manufacturing operations and profit sustainability.
• Precise investment focusing on addressing shortcomings, stabilizing investment, and preventing risks.
• Strengthening the main business of clinker and cement, optimizing asset allocation, and promoting development of solid and hazardous waste disposal, alternative energy, and new energy.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Annual high-standard, high-quality technical training activities for employees; health and safety training via video with domestic experts to improve employee safety awareness and occupational health monitoring.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Decreased cement demand due to adjustments in the real estate sector and slowing infrastructure investment; intense price competition in mainstream consumer markets; industry-wide losses.

Mitigation Strategies

• Strict implementation of staggered production; market expansion through differentiated marketing and exploring special cement markets; cost reduction through lean production management, procurement optimization, and resource utilization; risk control through safety management, quality control, policy compliance, and financial management.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed