Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change and Carbon Reduction
• Environmental Protection
• Health and Safety
• Protection of Employees’ Rights and Interests
• Sustainable Supply Chain
• Community Relations
• Customer Satisfaction
• Compliance and Risk Management
• Renewable and Clean Energy

Environmental Achievements

• Reduced GHG emission intensity by 4.06 10,000 tons of CO2 equivalent/RMB1 billion of revenue from 5.31 in 2020.
• 43 member enterprises obtained ISO 14001 certifications.
• Implemented energy-saving technical transformations, reducing carbon emissions by nearly 50,000 tons per year (LNG pump) and 72,000 tons per year (amine regenerator).
• Developed a green action plan with targets for carbon peak by 2030 and carbon neutrality by 2050.

Social Achievements

• Launched Employee Care 2.0 program, providing relief policies for employees in extreme difficulties or with major diseases.
• Organized various recreational activities to enrich employees’ lives.
• Provided 586 health and safety training sessions for all employees, with an annual training per capita of 20 hours.
• No employee safety accidents recorded in 2021.
• 100% physical examination coverage of employees.

Governance Achievements

• Established an ESG Committee and working groups to oversee ESG strategic planning and goal setting.
• Linked senior executives’ remuneration to ESG assessment criteria.
• Awarded A, the highest rating, from the Shanghai Stock Exchange for information disclosure assessment.
• Implemented a “zero tolerance” policy for serious accidents.

Climate Goals & Targets

Environmental Challenges

• Climate change risks (physical risks: severe cold weather, hot weather, flood and waterlogging; transition risks: national carbon reduction policies, carbon market development, energy transformation pressure, customer demand for clean energy, public pressure).
• Supply chain disruptions (not explicitly stated, but implied through focus on supplier management).

Mitigation Strategies

• Established a systematic climate change risk management system.
• Developed a green action plan with emission reduction targets.
• Implemented energy conservation and emission reduction measures across different business segments.
• Developed and applied digital risk management platform.
• Strengthened supplier management system, including ethical and compliance requirements.

Supply Chain Management

Responsible Procurement

• Fair, just, and open principles for supplier management.
• Requirement for suppliers to fulfill environmental and social responsibilities.
• Green and responsible procurement.
• Supplier Commitment to Integrity.
• Supplier blacklist management mechanism.

Climate-Related Risks & Opportunities

Physical Risks

• Typhoon
• Extremely hot/cold weather
• Sea level rise

Transition Risks

• National carbon reduction policies
• Carbon market development
• Energy transformation pressure
• Customer demand for clean energy
• Public pressure

Opportunities

• Development of low-carbon products and services
• Supportive policy incentives
• Energy source diversification

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guidelines, Shanghai Stock Exchange Information Disclosure Guidelines

Certifications: ISO 14001, ISO 45001, ISO/IEC 27001 (ENN Energy)

Sustainable Products & Innovation

• Low-carbon solutions (low-carbon factories, low-carbon parks, low-carbon buildings, low-carbon transportation)
• Green methanol production units
• Hydrogen production technology

Awards & Recognition

• A rating from the Shanghai Stock Exchange for information disclosure assessment
• BB rating by MSCI for ESG management
• Inclusion in MSCI China A-Share Index
• Inclusion in the Hang Seng (China A) Corporate Sustainability Index
• 2021 ESG Excellence Enterprises
• Most Socially Responsible Listed Companies in 2021
• Caijing Evergreen Award – Sustainability Performance
• Outstanding Social Responsibility Award for China Listed Companies in 2021
• Benchmark Award for Capital Operation of Listed Companies
• Best Board of Directors for Investor Relations
• Investor Relations Management Award
• Dream-Building Award for outstanding talent development

Environmental Metrics

ESG Focus Areas

• Climate Change and Carbon Emission Reduction
• Operational Safety
• Talent Development
• Digital Intelligence
• Supply Chain Management
• Community Engagement
• Corporate Governance

Environmental Achievements

• Reduced carbon emission intensity by 20.4% year-on-year
• Reduced carbon emissions from operations by 200,000 tons of CO2 equivalent over the previous year
• Investment in environmental protection funds: 60.29 million RMB
• 66 subsidiaries certified for ISO 14001 Environmental Management System
• Achieved zero major environmental pollution incidents and violations
• Reduced GHG emission intensity by 48%

Social Achievements

• Increased percentage of female directors from 8% to 18%
• Increased percentage of independent directors from 33% to 36%
• Conducted 41 compliance trainings with 4,503 participants and 10,976 training hours
• Invested 24.42 million yuan in public welfare and charity
• Signed UN Women’s Empowerment Principles
• Zero employment discrimination, harassment, child labor, or forced labor incidents
• Employee social insurance coverage rate reached 100%

Governance Achievements

• Held 13 board meetings with 100% director attendance
• Established an ESG Committee
• Linked remuneration of non-independent directors and senior management to ESG performance indicators
• Implemented a clawback mechanism for remuneration
• Completed internal self-examination and system amendment for ISO 37001 and ISO 37301 certifications (ENN Energy)

Climate Goals & Targets

Environmental Challenges

• Volatile external landscape and constrained industry environment
• Fluctuation in LNG price
• Climate change risks (extreme weather, policy changes, market shifts)
• Supply chain disruptions
• Maintaining high-quality development in ESG governance

Mitigation Strategies

• Strengthened risk management mechanism
• Improved corporate governance structure
• Implemented comprehensive risk management and control measures
• Developed risk-related incentives for management and employees
• Introduced ETRM system and ETMO mobile product for risk management
• Formulated management measures for climate change risks within the TCFD framework
• Developed alternative sourcing strategies
• Improved ESG management system by setting and completing annual ESG goals and improving operational transparency

Supply Chain Management

Supplier Audits: 80 suppliers for factory inspection, 54 on-site inspections, 200+ batches for third-party verification (2022)

Responsible Procurement

• Code of Conduct on Corporate Social Responsibility for Suppliers
• Health, Safety, and Environment (HSE) Agreement for Suppliers
• Commitment of Integrity and Self-discipline
• Supplier ESG risk assessment and determination
• Green procurement initiatives (recyclable packaging, energy-saving products)

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons, extreme rainfall and floods
• Extreme hot and cold weather
• Sea level rise

Transition Risks

• Climate policies driving low-carbon transition and reducing LNG demand
• Increased operating costs due to stringent environmental regulations
• Higher costs for low-carbon technologies
• Fluctuations in LNG price
• Changes in market demand

Opportunities

• Green and intelligent transformation of coal mine enterprises
• Increased demand for natural gas replacing coal
• Development opportunities in renewable energy and integrated energy projects
• Improved efficiency through digital-intelligent technology
• Growth of carbon emission trading market
• Low-carbon development of industry chain

Reporting Standards

Frameworks Used: GRI Standards, HKEX ESG Reporting Guide

Certifications: ISO 14001, ISO 45001, ISO 37001 (ENN Energy), ISO 37301 (ENN Energy), ISO 27001, ISO 27701, ISO 9000, ISO 20000, CMMI3

Third-party Assurance: Deloitte Touche Tohmatsu Certified Public Accountants LLP

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 13 (Climate Action)
• Goal 8 (Decent Work and Economic Growth)
• Goal 11 (Sustainable Cities and Communities)
• Goal 17 (Partnerships for the Goals)

Initiatives contribute to these goals through various ESG programs and projects.

Sustainable Products & Innovation

• Carbon-neutral LNG
• Hydrogen energy
• Photovoltaics
• Biomass energy

Awards & Recognition

• A-share Best Practice Award 2022 by Wind ESG
• Outstanding ESG Improvement Award and Newcomer Award at 2022 Hong Kong ESG Reporting Awards
• Award for Annual Outstanding Enterprise in Sustainable Development by EY
• 2022 ESG Excellence Award at the 20th China Financial Annual Champion Awards by Hexun
• Elite Board Secretary Forum - Best ESG Practice Award by CLS.CN
• Advanced Unit of Waste Sorting in Zhoushan Hitech Industrial Park of the Year

Environmental Metrics

ESG Focus Areas

• Carbon reduction
• Biodiversity conservation
• Low-carbon integrated energy solutions

Environmental Achievements

• Released the first Green Action Report with clear carbon reduction targets: 20% reduction in greenhouse gas emission intensity by 2025 and 50% by 2030 compared to the base year; striving for company-wide carbon neutrality by 2050.
• Completed the carbon footprint inspection of Zhoushan LNG terminals in 2021 and obtained ISO14064 certification.
• Started construction of rooftop photovoltaic projects to optimize energy consumption structure at Zhoushan LNG Terminal.

Social Achievements

• Released the first Biodiversity Conservation Report, including conservation measures across various business segments.
• Expanded the market of gas refueling stations in Northwest China.

Governance Achievements

• Released ESG Report since 2020.
• Included in MSCI China A Index, Hang Seng (China A) Corporate Sustainability Benchmark Index, MSCI ESG Rating, and Hang Seng Sustainability Index.

Climate Goals & Targets

Environmental Challenges

• Price hikes for C/I and residential customers (mitigated by government subsidies for residential customers).

Mitigation Strategies

• Government subsidies of RMB 120 million for residential customer price hikes.
• Adjusted shipment schedule to expand the scale of direct gas sales in response to international market situations.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate Change
• Safety
• Governance
• Supply Chain Sustainability
• Employee Well-being
• Community Development
• Biodiversity Conservation

Environmental Achievements

• Reduced carbon emissions from the Company’s operation by 28,400 tons year-on-year
• Reduced comprehensive energy consumption by 9.16% year-on-year
• Reduced Scope II and II GHG emission intensity by 6.97% year-on-year
• Eliminated 100% diesel vehicles for the Company’s LNG transportation fleet, with a year-on-year decrease of diesel consumption by 64.67%
• Total power generated by renewable energy reached 18.3813 million kWh
• Helped society & clients reduce carbon dioxide emissions by 56.14 million tons
• Completed coal asset stripping and concentrated efforts in natural gas to improve sustainable development capability

Social Achievements

• Improved training management system and resource building, with 450,698 training sessions in total and 100% employee training coverage rate
• Average training duration per employee was 35.11 hours, with a year-on-year increase by 50.27%
• Employee social insurance coverage rate reached 100%
• Average score of employee satisfaction survey reached 4.34
• Invested RMB 77.24 million in public welfare and charity

Governance Achievements

• Obtained certification for the Compliance Management System (ISO 37301) and Anti-bribery Management System (ISO 37001)
• 100% of employees signed the Employee Code of Conduct and the Code of Integrity and Compliance
• 100% of suppliers and contractors signed the Code of Conduct and Integrity Agreement
• 7 board meetings were held in total, with 100% attendance of directors
• Independent directors accounted for 36% and female directors accounted for 18% in the Board of Directors
• Audit Committee and the Remuneration and Evaluation Committee consisted of 100% independent directors

Climate Goals & Targets

Environmental Challenges

• Global economic growth slowdown
• Accelerated geopolitical turbulence
• Increasingly prominent climate change crisis
• User privacy protection risks due to increased data management
• Biodiversity loss risks due to operations
• Increased operating costs due to incorporation of power sector into China’s ETS and shipping industry into EU ETS

Mitigation Strategies

• Leveraged ESG principles and planning execution as the cornerstone, consistently supported the realization of the “dual carbon” goals
• Unified social and commercial values through innovation and application of digital intelligence technologies
• Established a Digital Intelligence Security Committee
• Released the Privacy Policy
• Released the Biodiversity Conservation Policy
• Enhanced environmental management throughout the operation process
• Established carbon trading accounts with counterparties
• Established settlement accounts in EU
• Implemented globally connected market risk monitoring
• Developed EUA management capabilities
• Evaluated the CBAM impact
• Developed carbon support products
• Established ETMO-centered digital capabilities and systems for carbon emission risk control

Supply Chain Management

Supplier Audits: 1292 online audits, 57 on-site inspections, 200+ batches for third-party verification

Responsible Procurement

• Supplier Code of Conduct
• Supplier Admission and Administrative Measures
• Administrative Regulations on Materials Procurement
• Commitment of Integrity and Self-discipline

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons
• Floods

Transition Risks

• Incorporation of power sector into China’s ETS
• Incorporation of shipping industry into EU ETS

Opportunities

• Digital intelligence transformation
• Renewable energy opportunities

Reporting Standards

Frameworks Used: Guidelines No. 14 for Self-regulation of Listed Companies on Shanghai Stock Exchange - Sustainability Report (Trial), Environmental, Social and Governance Reporting Guide under the Appendix C2 of the Listing Rules and Guidance of the Hong Kong Exchanges and Clearing Limited, 2021 GRI Sustainability Reporting Standards, TCFD

Certifications: ISO 14001, ISO 45001, ISO 37301, ISO 37001, ISO 27001, ISO 27701

Third-party Assurance: CECEP (HK) Advisory Company Limited

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 13 (Climate Action)
• Goal 8 (Decent Work and Economic Growth)
• Goal 11 (Sustainable Cities and Communities)
• Goal 17 (Partnerships for the Goals)

Various initiatives contribute to these goals as detailed throughout the report

Sustainable Products & Innovation

• E-Carbon intelligent tool
• Smart Construction Site product
• LNG transportation vehicle management platform
• Indoor risk map
• Indoor alarm + cut-off valve + linkage box
• AI safety valves
• Xinzhi Carbon Pass product

Awards & Recognition

• Hang Seng A-share Sustainable Development Companies Index (top 30)
• Wind’s Top 100 ESG Best Practices of Chinese Listed Companies in 2023
• Silver Award of the 2023 International Report Design Competition
• Caijing Evergreen Award - Green Award for Sustainable Development
• Huxiu - Sustainable Brand Evergreen Award
• Bkeconomy.com - ESG Pioneer Award for A-share Private Listed Companies
• NetEase Finance Annual Noteworthy Green Energy Enterprise
• China Association for Public Companies - Best ESG Practice Case for Listed Companies
• Golden Bull Award for the Highest Investment Value, Golden Bull Award for Social Responsibility and Top 100 ESG Companies
• Best Socially Responsible Listed Company