Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Corporate Social Responsibility
• Safety
• Supply Chain Management
• Service Quality
• Environmental Sustainability
• Employee Development
• Community Investment

Environmental Achievements

• Reduced integrated energy consumption by 16.12% year-on-year to 69,441.13 tons of standard coal.
• Reduced carbon dioxide emissions by 31,030,800 tons due to the use of natural gas.
• Reduced carbon dioxide emissions by 546,900 tons due to the promotion of rural “coal-to-gas” projects.
• Reduced BOG emissions by approximately 5,920 tons through various reclamation methods.

Social Achievements

• 100% customer complaint resolution rate.
• 100% employment contract coverage rate and social insurance payment ratio.
• RMB 33.72 million donated through the ENN Group Charity Foundation.
• Launched employee well-being programs, including EAP platform and various cultural and sporting activities.

Governance Achievements

• Established an ESG information system for systematic collection and analysis of ESG information.
• Implemented a visualized safety system for early warning and supervision.
• Organised anti-corruption training for 1,750 staff, including 720 management personnel.

Climate Goals & Targets

Environmental Challenges

• Gas supply shortage in Changzhou in October 2017.
• Meeting the increasing demand for energy while reducing emissions.

Mitigation Strategies

• Established an emergency team to manage the gas shortage, implemented various measures to ensure gas supply.
• Actively promoted coal-to-gas projects, implemented energy conservation and emission reduction measures, and optimized resource consumption.

Supply Chain Management

Responsible Procurement

• Supplier screening criteria covering business ethics, human rights, quality and safety, environmental and social influences.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Appendix 27 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, G4 Sustainability Reporting Guidelines (GRI), Guidelines on Corporate Social Responsibility Reporting in China (CASS-CSR 4.0), ISO 26000 Social Responsibility Guide

Awards & Recognition

• Best Management Team Ranking in Asia
• Most Honored Company
• Best IR Company
• Best Website
• Best Analyst Days
• Best IR Professional
• 2nd Place: Best in Sector - Utilities
• Certificate of Excellence
• China Top 500
• 2016 Top 100 Listed Company in Hong Kong

Environmental Metrics

ESG Focus Areas

• Sustainable Development
• Climate Change Mitigation
• Ecological Environment
• Biodiversity
• Green Supply Chain
• Employee Well-being
• Community Investment
• Corporate Governance
• Information Security
• Business Ethics
• Supply Chain Management

Environmental Achievements

• Reduced clients’ energy usage by 227,437 tons of standard coal through integrated energy projects.
• Recovered 36,570,800 cubic meters of boil-off gas (BOG).
• Offset the consumption of 2,318,183 tons of standard coal through coal-to-gas projects.
• Reduced carbon dioxide emissions by approximately 340 tons and sulphur dioxide emission by 5.13 tons annually through geothermal heating project.
• Reduced carbon dioxide emissions by 67,300 tons and saved energy equivalent to 25,800 tons of standard coal annually through biomass utilization project.
• Six member companies held ISO 14001 certification.

Social Achievements

• Donated a total of RMB51.72 million in charity.
• Conducted 126 employee training sessions, involving 13,790 trainees with 638,109 total training hours.
• Resolved all 21 labor-related complaints with a 100% handling rate.
• Achieved 100% privatization of customer service system and 100% customer service staff signed specific privacy protection agreements.
• Client satisfaction reached 93%.

Governance Achievements

• Established the ESG Committee.
• Implemented a risk management and internal control system.
• Conducted 21 training sessions on ethics and integrity with 1,680 participants.
• No anti-corruption cases were brought against the Company.
• 82% of suppliers are accredited with ISO14000 certification.

Climate Goals & Targets

Environmental Challenges

• Extreme weather events affecting construction and operation.
• Competition in the clean energy market.
• Impact of climate change on downstream gas demand and logistics.
• Potential risks related to climate change.
• COVID-19 pandemic's impact on the economy.

Mitigation Strategies

• Improved intelligent operation and management.
• Developed integrated energy business and value-added services.
• Expanded procurement channels for natural gas sources.
• Used alternative clean energy according to local conditions.
• Implemented emergency plans for winter gas supply.
• Strengthened safety protection for stations, pipelines and gas facilities.
• Provided targeted solutions to ensure gas supply during the pandemic.

Supply Chain Management

Supplier Audits: 82% of suppliers are accredited with ISO14000 certification; conducted supplier sampling inspections, assessments and evaluations.

Responsible Procurement

• Code of ENN Energy Holdings Limited Supplier Corporate Social Responsibility Code of Conduct
• Supplier performance assessments
• Green and responsible procurement practices
• Incorporation of supplier’s management system certifications (ISO14000 and ISO9000) into assessment criteria
• Supplier blacklist mechanism

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (typhoons, rainstorms)

Transition Risks

• Competition from new players in the clean energy arena
• Government policies regarding natural gas use, coal-to-gas conversion and the “Blue-Sky Project”

Opportunities

• Government policies regarding natural gas use, coal-to-gas conversion and the “Blue-Sky Project”

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards

Certifications: OHSAS 18001, ISO 45001, ISO 9001, ISO 14001

Sustainable Products & Innovation

• Geothermal heating solution
• Biomass-based renewable energy system
• Intelligent energy management platform

Awards & Recognition

• World’s 50 Most Valuable Public Utility Brands 2020 (24th rank)
• Top 500 Chinese Companies (No. 147)
• Forbes Global 2000 (No. 996)
• Ranked 82nd in the Top 100 HK list
• Best Investor Relations (for Corporate Transactions)
• Outstanding Performance Award in the 5th Investor Relations Awards 2019
• Energy and Resources: Comprehensive Presentation Gold Award
• 2019 All-Asia Executive Team awards

Environmental Metrics

ESG Focus Areas

• Climate Change
• Safety
• Talent Development
• Supply Chain Management
• Community Relations

Environmental Achievements

• Reduced carbon dioxide emissions by 6.67 million tons; saved customers 2.12 million tons of standard coal consumption; reduced greenhouse gas emission intensity (Scope I and II) by 17.3%; 23 member companies obtained ISO14001 certification; 100% recycling of odorant waste barrels; reduced electricity consumption at headquarters by 36% (283,078 kWh annually)
• Launched TCFD climate risk financial quantification pilot work

Social Achievements

• RMB 50.795 million in charity donations; 92.1% customer satisfaction rate; employee satisfaction rate of 4.32/5; upgraded talent management system; no major safety production accidents; established 52 low-carbon parks and 59 green factories; implemented the “Health Station” project; upgraded the “Moms’ Room”
• Increased percentage of female directors from 10% to 18%

Governance Achievements

• Established an ESG Committee and working group; linked Directors and senior managers’ compensation to ESG indicators; implemented a remuneration and bonus clawback mechanism; improved supervision and prevention mechanism to ensure honest and legal operation; conducted special audits of economy, engineering and procurement on 59 enterprises and branches; no significant corruption complaints

Climate Goals & Targets

Environmental Challenges

• Extreme weather events (e.g., extreme rainfall in Henan Province)
• Pandemic prevention and control
• Government's dual control of energy consumption
• Tight gas supply in winter

Mitigation Strategies

• Developed a normalised winter gas supply system; strengthened demand forecasting and resource allocation capabilities; implemented contingency mechanisms for extreme precipitation and sudden temperature drops; formulated targeted response measures for identified climate risks; donated anti-flood materials and micro-combustion engines for flood relief; coordinated with other companies to fight the pandemic; ensured gas safety and supply during the disaster

Supply Chain Management

Supplier Audits: 100% review coverage rate of tier 1 critical suppliers

Responsible Procurement

• Hierarchical management of suppliers; evaluation of sustainable development performance; quality assurance and procurement governance; requiring suppliers to follow national laws and regulations; including suppliers' access to qualification system certification in assessment criteria; identifying potential supply chain risk and developing control measures; enhancing suppliers' capacity in ESG risk management; promoting green procurement

Climate-Related Risks & Opportunities

Physical Risks

• Extreme precipitation
• Sudden temperature drops

Transition Risks

• Dual-carbon and dual-control policy
• Slowdown of the real estate industry

Opportunities

• Green technology innovation
• Carbon market improvement
• New demand for energy-saving and low-carbon products and services

Reporting Standards

Frameworks Used: GRI Standards, TCFD

Certifications: ISO 14001, ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation and infrastructure)
• Goal 13 (Climate action)

ENN Energy's business development is in line with the national energy transition trend and market requirements; providing clean energy solutions; promoting green and low-carbon development; contributing to the UN Sustainable Development Goals

Sustainable Products & Innovation

• Low-carbon parks
• Green factories
• Green buildings
• Green homes

Awards & Recognition

• Ranked 67 in the S&P Global Platts Top 250 Global Energy Company Rankings; listed on the Forbes 2000 World's Largest Public Companies; awarded as the “Honored Company” by The Institutional Investor; awarded the “ESG Leading Enterprise Awards”, the “Leading ESG Initiative Awards” and the “Theme Awards-ESG Investing” by The Chinese Edition of Bloomberg Businessweek; rewarded as the “Outstanding ESG Enterprise Award” by the Hong Kong Economic Times; won the “4th Global Business Leaders Forum”; won the “2021 Outstanding Sustainable Practice Award” for the Hainan Yangpu Universal Energy Project; 2020 Global Energy Awards, Award of Excellence: Downstream; The Best Green Bond (Renewable Energy/Transition Energy) of the 2020 Triple A Sustainable Capital Markets Regional Awards; 2021 Model Training School for Female Employees of Trade Unions (ENN Changsha)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Safety
• Digital Intelligence
• Sustainable Supply Chain
• Employee Development
• Community Engagement

Environmental Achievements

• Reduced natural gas consumption per unit of steam produced by natural gas-fired boilers by 1.6% year-on-year.
• Improved COP (Coefficient of Performance) of electric chillers by 2.2% year-on-year.
• Reduced biomass consumed per unit of steam produced by biomass-fired boilers by 6.5% year-on-year.
• Reduced steam pipeline network loss by 3.6% year-on-year.
• Improved photovoltaic power generation by 5.5% over feasibility study.
• Reduced energy consumption per unit area of ENN Energy's office buildings by 11%.
• Photovoltaic power generation accounted for 4.4% of the total electricity consumption in self-sustaining office buildings.
• 60% of office vehicles were renewable vehicles.

Social Achievements

• Launched the "Lizheng" system to meet the humanistic requirements of the new era.
• Established a sound modern energy system that is low-carbon, high-efficiency, intelligent, and innovative.
• Improved employee satisfaction by 6.4% compared to last year.
• Conducted 449,390 total safety training sessions.
• Conducted 277,455 hours of volunteer time.
• Donated 23.06 million RMB for charity and public welfare events.

Governance Achievements

• Established an ESG Committee to aid in the formulation of the Company's ESG strategy and supervise the execution of ESG initiatives.
• Linked the remuneration of executive directors and senior management to the Company's sustainability performance indicators.
• Launched the ESG smart ecological platform to strengthen the calculation and analysis of greenhouse gas emissions and comprehensive energy consumption indicators.
• Obtained ISO 37301 Compliance Management System and ISO 37001 Anti-Bribery Management System certificates.

Climate Goals & Targets

Environmental Challenges

• Rising average temperatures leading to lower demand for natural gas in winter.
• The "Dual-Carbon" policy promoting the transition of the energy structure, potentially affecting the revenue and sustainable operation of the natural gas-related business.
• Potential damage to natural gas transport pipelines and facilities due to floods.
• Reduced demand for natural gas during winter due to average temperature rise.
• Gradual tightening of emission quotas within Chinese regulated carbon markets.
• Challenges in LNG transportation, storage, and transformation.

Mitigation Strategies

• Developing IE business and promoting the use of non-fossil energy.
• Deploying cutting-edge low-carbon technologies such as energy storage, biogas, and geothermal.
• Carrying out hydrogen energy technology applications.
• Tracking the progress of carbon market laws and regulations.
• Promoting self-generated clean energy projects.
• Implementing the "Unmanned Station Safety Guard" system.
• Improving pipeline network information and pipeline integrity construction.
• Optimizing intelligent products and strengthening monitoring.

Supply Chain Management

Supplier Audits: 100% key tier 1 supplier review coverage rate

Responsible Procurement

• Green and responsible procurement
• ENN Energy Supplier Corporate Social Responsibility Code of Conduct
• Health, Safety and Environment (HSE) Agreement
• Commitment to Integrity and Self-discipline
• Supplier qualification system certifications (ISO 14001, ISO 45001, ISO 9001)

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons
• Floods
• Average temperature rise

Transition Risks

• Energy structure transition
• Domestic Carbon Market

Opportunities

• Resource efficiency opportunity from digital transformation
• Product and service opportunity from IE business

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide, GRI Standards

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

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

ENN Energy's initiatives contribute to 11 relevant UN SDGs.

Sustainable Products & Innovation

• Wireless gas alarm
• Indoor IoT alarm device
• Residential AI safety valves
• Various low-carbon energy solutions (solar PV, biomass, geothermal, hydrogen, energy storage)

Awards & Recognition

• 2023 ESG Best Practice Award for Listed Companies in China
• Top 100 ESG Listed Companies in China
• China News Service Low-Carbon Role Model of 2023
• China Fortune Annual Sustainable Development Pioneer Enterprise
• Best ESG Award
• The Open Group APAC ESG Architecture organisation Award for Open Architecture Standards
• Best National Union Service Station for Outdoor Workers