Climate Change Data

Xin Yuan Enterprises Group Limited

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:51,067.42 tCO2e/year (2021: 78,409.06)
Scope 1 Emissions:51,050.19 tCO2e/year (2021: 78,392.86)
Scope 2 Emissions:17.23 tCO2e/year (2021: 16.19)
Total Energy Consumption:191,386.06 MWh/year (2021: 271,695.03)
Water Consumption:182 m3/year (2021: 171)
Waste Generated:0.42 tons/year (2021: 0.46)
Carbon Intensity:1,276.69 tonnes/person (2021: 2,178.03)

ESG Focus Areas

  • Marine pollution
  • Environmental and ecological protection
  • Energy efficiency and conservation
  • Talent acquisition and retention
  • Employee training and development
  • Occupational health and safety
  • Employees’ rights and support
  • Service quality and safety
  • Customer services and feedback
  • Compliance operations
  • Risk management
  • Corporate governance

Environmental Achievements

  • All existing ships met the latest IMO requirements of EEXI and CII from January 1, 2023
  • Used low-sulphur fuel oil in all operations to meet IMO’s sulphur limits and reduce pollutant emissions
  • Strengthened fuel management and improved fuel efficiency
  • Air pollutants reduction target aligned with the reductions of carbon intensity targets

Social Achievements

  • No reported cases of prosecution for violation of labour laws and regulations and employees’ rights and interests
  • No accidents resulting in work-related injuries or death
  • Provided training on external regulations and internal policies, occupational health and safety, anti-corruption, management, maritime safety and other topics

Governance Achievements

  • Independent internal control consultant conducted a review on the effectiveness of the internal control system
  • No significant area of concern that may affect the financial, operational, compliance controls and risk management of the Group has been identified

Climate Goals & Targets

Long-term Goals:
  • Regularly check on the water-saving initiatives progress
  • Strengthen the usage ratio and the applications of seawater desalination
  • Reduce the fresh water demands from ashore
  • Increase recycling uses of water resources
Medium-term Goals:
  • Continuously track and disclose energy efficiency indicators and performance
  • Strive to meet the energy efficiency obligations that are expected to apply to our ships
  • Develop a hazardous waste management approach
  • Install and use more onboard waste disposal machinery to reduce the waste amount
  • Reduce plastic waste generation
  • Manage and review ballast water management, implement innovative techniques in reducing potential harm
  • Optimise and maintain desalination water generators, and strengthen desalinated water reserves
  • Improve the water efficiency of sanitary ware
  • Solid waste management
Short-term Goals:
  • Increase fuel efficiency, reduction in carbon intensity and air emissions
  • Minimise hazardous waste and dispose responsibly
  • Minimise non-hazardous waste and dispose responsibly
  • Manage wastewater treatment to minimise harmful marine discharge
  • Avoid unnecessary water wastage
  • Improve energy efficiency of office equipment
  • Reduce the production of solid wastes
  • Promote recycling culture
  • Encourage water conservation, and reduce average water consumption

Environmental Challenges

  • Changes in environmental legislations and policies may place higher compliance risks on the Group
  • Global asphalt shipping market faced challenges due to strict pandemic control measures in China and the Russia-Ukraine war
Mitigation Strategies
  • Retrofitted ships for better energy efficiency and lower carbon emissions
  • Worked closely with engineers, customers, shipyards, and international communities to explore the latest advancements in ship hardware and shipping systems
  • Formulated corresponding risk response strategies for different levels of ESG risks

Supply Chain Management

Supplier Audits: 27 suppliers

Responsible Procurement
  • Green Procurement Standard
  • Environmental Load Material Management Standard
  • Supplier Bidding Procedures

Climate-Related Risks & Opportunities

Transition Risks
  • Changes in environmental legislations and policies
Opportunities
  • Development of energy-efficient products and technologies

Reporting Standards

Frameworks Used: Appendix 27 to the Listing Rules

Reporting Period: 2023

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

  • Downturn in construction activity may reduce demand for asphalt, affecting charter rates and vessel utilization.
  • Disruptions in the supply chain of crude oil or refining capacity can affect asphalt availability and prices.
  • High volatility in bunker price can directly impact the profitability of asphalt chartering business.
  • Global recession or slowdown in emerging markets could reduce the number of projects requiring asphalt.
  • Tariffs, trade barriers, and geopolitical tensions can influence the flow of asphalt, potentially disrupting established trade routes and affecting chartering services.
Mitigation Strategies
  • The Group will monitor these risks closely and be prepared to adopt strategies accordingly to navigate the challenges that arise in 2024 and beyond.

Supply Chain Management

Climate-Related Risks & Opportunities