Climate Change Data

Environmental Metrics

ESG Focus Areas

• Clean Energy Use
• Energy Efficiency
• Establishing a Green Office System
• Water Resources Protection
• Talent Development and Management
• Employee Health and Safety Management
• Protection of Employee Rights and Benefits
• Safe and Stable Gas Supply
• High Quality Products and Services
• Improvement of Customer Satisfaction
• Waste Management

Environmental Achievements

• Saved 22,903 kWh of electricity through Green Office System initiatives.
• Reduced water consumption by 1.93 cubic meters compared to 2017.
• Recycled over 800 sheets of paper.
• No non-compliance incidents relating to emission of exhaust gases, discharges into water and land, and generation of hazardous and non-hazardous waste.

Social Achievements

• No non-compliance incidents relating to compensation, dismissal, recruitment, promotion, working hours, rest periods, equal opportunity, diversity, anti-discrimination, and other benefits and welfare.
• No non-compliance incidents relating to providing a safe working environment and protecting employees from occupational hazards. No major safety incidents reported.
• Implemented various training programs for employees, including management training, technician skill competitions, and re-test training for junior technicians.
• Provided five social insurances and one housing fund to employees.

Governance Achievements

• Established an ESG Working Group reporting to the Board to manage and implement sustainable development matters.
• Developed policies such as Binhai Investment’s Whistle-blowing Administrative Measures to address bribery and corruption.
• No non-compliance incidents relating to bribery, extortion, fraud, and money laundering.

Climate Goals & Targets

Environmental Challenges

• Mechanical noise pollution, small amount of residual soil waste and atmospheric emissions generated during pipeline installation and earthworks.
• Indirect greenhouse gas emissions from electricity consumption in offices.
• Water wastage in daily operations.

Mitigation Strategies

• Formulated Safety Management Regulations for Engineering Construction to mitigate noise pollution.
• Used backfill methods and directional drills to reduce residual earthwork.
• Required vehicles to use machinery meeting environmental monitoring requirements and encouraged use of clean energy machinery.
• Established a Green Office System with measures like CCMS, BMS, energy-efficient lighting, and VSDs.
• Implemented water-saving measures such as regular checks on water meters, dual flush toilets, and water-saving faucets.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Administrative Measures of Suppliers of Piped Gas and Administrative Measures of the Procurement of Non-piped Gas Goods
• Notice of Centralised Procurement, Guiding Regulations of the Procurement of Gas Materials and Equipment

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Clean Energy Use
• Energy Efficiency
• Establishing a Green Office System
• Water Resources Protection
• Talent Development and Management
• Employee Health and Safety Management
• Protection of Employee Rights and Benefits
• Safe and Stable Gas Supply
• High Quality Products and Services
• Improvement of Customer Satisfaction

Environmental Achievements

• Sold 1.915 billion cubic meters of natural gas, equivalent to replacing 2.547 million tonnes of coal, and reducing 2.719 million tonnes of carbon dioxide and 42,000 tonnes of SO2 emissions.
• Reduced year-on-year electricity consumption by 2,380 kWh.
• Successfully recycled over 500 kg of paper.

Social Achievements

• Organised the 9.7 Safety Skills Competition, with 34 subsidiaries participating.
• Held four training sessions on malpractices.
• Organised training on the management of tenders, non-tenders and suppliers.
• No non-compliance incidents relating to the provision of a safe working environment and protection from occupational hazards for employees, and no major safety incidents.

Governance Achievements

• No non-compliance incidents relating to bribery, extortion, fraud and money laundering.
• Developed Negative List of Malpractices, which details whistle-blowing procedures.

Climate Goals & Targets

Environmental Challenges

• Noise pollution, residual soil waste and atmospheric emissions generated during pipeline installation and earthworks.
• Indirect greenhouse gas emissions from the use of electricity, and indirect greenhouse gas emissions from the provision of heating.
• Minimal amounts of indirect greenhouse gas emissions are generated from the disposal of waste paper at landfill sites, and from employee business travel.

Mitigation Strategies

• Formulated Safety Management Regulations for Engineering Construction, requiring equipment that generate noise pollution to be placed away from residential areas; noise levels are prohibited to exceed 55 decibels between 10 pm and 6 am.
• Used backfill methods to reduce residual earthwork; further processing is conducted by third parties.
• Strictly required the use of machinery with tail gas emissions that meet environmental monitoring requirements; encouraged the temporary use of electricity during construction processes, and machinery that make use of clean energy.
• Encouraged employees to take public transportation and reduce the use of private vehicles; arranged for regular maintenance and repair works for its fleet of vehicles; provided drivers with training on low-carbon driving methods.
• Sorted through vehicles with high mileage, in use for a long duration of time, and with emission standards below China III. A proportion of these vehicles have been suspended from operation.
• Established a Green Office System, adopting a Central Control and Monitoring System (CCMS) and Building Management System (BMS), high energy efficiency lighting devices, Variable Speed Drives in pumps and fans, and requiring employees to turn off electronic appliances and air-conditioners when not in use.
• Implemented measures to conserve water usage, including regular checks on water meter readings, installing dual flush toilets and water-saving appliances, and advocating water-saving through various channels.
• Actively promoted paperless office environments and paper recycling.

Supply Chain Management

Responsible Procurement

• Administrative Measures of Suppliers of Non-piped Gas and Administrative Measures of the Procurement of Non-piped Gas Goods
• Management Measures for Tendering, Management Measures for Non-tendering Procurement
• Supplier Management Measures

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Environmental, Social and Governance Reporting Guide under Appendix 27 of the Main Board Listing Rules of the Stock Exchange of Hong Kong Limited

Environmental Metrics

ESG Focus Areas

• Clean Energy Use
• Talent Development and Management
• Safe and Stable Gas Supply
• Energy Efficiency
• Career Development of Employees
• High Quality Products and Services
• Environmental Protection at Construction Sites
• Employee Health and Safety Management
• Improvement of Customer Satisfaction
• Establishing a Green Office System
• Protection of Employee Rights and Benefits
• Supply Chain Environmental and Social Risk Management
• Management of Exhaust Emission
• Diversity of Welfare Policies
• Screening and Managing Suppliers
• Addressing Climate Change
• Anti-corruption

Environmental Achievements

• Reduced pollutant emissions by replacing 2.345 million tonnes of coal with 1.763 billion cubic meters of natural gas.
• Implemented measures to reduce residual earthwork, secure construction sites, improve drilling accuracy, prevent burning of hazardous chemicals, and use machinery meeting emission requirements during pipeline installations.
• Adopted new technologies to reduce natural gas release during pipeline construction and operation.
• Implemented waste management procedures for used meters, pipes, drums, and batteries, including recycling and proper disposal.
• Reduced carbon dioxide emissions by strictly controlling boiler temperatures and adjusting start-up/shutdown times.
• Established a green office system, including energy-efficient lighting, water-saving devices, and waste reduction initiatives.

Social Achievements

• Ensured equal opportunities and fair competition in recruitment.
• Implemented various working hour schemes to provide reasonable working hours.
• Offered competitive salaries, five social insurances, housing provident funds, and other benefits.
• Provided internal and external training programs to enhance employee skills and career development.
• Implemented occupational health and safety measures, resulting in no major safety incidents.

Governance Achievements

• Established an ESG Reporting Leading Group and ESG Reporting Working Group to manage sustainability matters.
• Implemented a risk management and governance system incorporating ESG risks.
• Developed Integrity Risk Prevention and Control Checklist and Negative List of Malpractices to prevent corruption.

Climate Goals & Targets

Environmental Challenges

• Potential risks to project construction from climate change.
• Damages to gas equipment and facilities from natural disasters.
• Impact of extreme weather on construction quality and safety.
• Uncertainty in weather forecasts affecting gas source indicators.
• Reduction in natural gas use during warm winters.
• Increased gas use during cold winters.

Mitigation Strategies

• Comprehensive assessments of hydrological, geological, and climate conditions for major projects.
• Safety checks on gas equipment before natural disasters, reinforcement, and insurance.
• Contingency plans for natural disasters, emergency supplies, and safety training.
• Contingency plans for heating seasons and liaison with upstream gas units.
• Comprehensive measures to increase income and cut costs during warm winters.
• Connecting with first-hand gas sources, constructing LNG storage facilities, and cooperation agreements to ensure gas supply during cold winters.

Supply Chain Management

Supplier Audits: 231 long-term suppliers, 48 shortlisted construction suppliers, 39 with quality and environmental certifications.

Responsible Procurement

• Administrative Measures of Suppliers of Non-piped Gas
• Administrative Measures of the Procurement of Non-piped Gas Goods
• Management Measures for Tendering
• Management Measures for Non-tendering Procurement
• Supplier Management Measures

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weathers
• Natural disasters
• Impact of extreme weather on construction quality and safety

Transition Risks

• Relevant policy changes

Opportunities

• Increased natural gas demand due to coal-to-gas switching.

Reporting Standards

Frameworks Used: HKEX’s Environmental, Social and Governance Reporting Guide

Third-party Assurance: Not disclosed