Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employee Health and Safety
• Corporate Governance
• Supply Chain Management
• Community Investment
• Anti-corruption

Environmental Achievements

• Implemented advanced technology and equipment (heated lithium bromide absorption refrigeration unit, waste heat recovery technology, circulating fluidized bed boiler, etc.) resulting in pollutant emissions far below prescribed targets.
• NOx and SO2 emissions in 2018 were 444 tons and 141 tons respectively, below the annual limits of 549.25 tons and 327.1 tons.

Social Achievements

• Annual employee turnover rate was low (2.99%).
• Organized various employee training programs (644 trainings, totaling 846 hours, with 2,222 participants).
• Conducted annual health checkups for all employees, including additional women's health examinations for female employees and occupational health examinations for employees in high-risk positions.
• No safety accidents occurred in 2018.
• Organized various employee activities (basketball games, tug-of-war competitions, team building activities).

Governance Achievements

• Established a comprehensive corporate governance framework in accordance with national laws and regulations.
• Implemented anti-corruption policies and procedures.
• No major corruption litigation cases in 2018.

Climate Goals & Targets

Environmental Challenges

• High competition in the coal-based urea production industry.
• Simple product structure (80-90% of profits from urea products).
• External risks such as market fluctuations, seasonal changes, and severe weather.
• Internal risks related to operational safety, employee health, environmental protection, management, technology, and employee competence.

Mitigation Strategies

• Actively introducing new processes and technologies for energy saving and consumption reduction.
• Developing downstream products related to major products and expanding the industrial chain.
• Strengthening relationships with major customers and expanding sales channels.
• Optimizing product quality and improving service quality.
• Strengthening internal management and reducing production costs.
• Actively introducing high-level talents to enhance management and professional levels.

Supply Chain Management

Supplier Audits: Annual comprehensive evaluations of large and long-term suppliers

Responsible Procurement

• Supplier selection and evaluation management system
• Bidding and price comparison for supplier selection

Climate-Related Risks & Opportunities

Awards & Recognition

• National Model Workers’ Home
• Hebei Province AAA-level Labor Relations Harmonious Enterprise
• Hebei Province Benchmarking Model Enterprise
• Top 20 Urea Production of Nitrogen Fertilizer Companies in 2016
• Top 20 National Nitrogen Fertilizer Enterprises Urea Production and Total Profit Companies in 2017
• Advanced Unit of Energy Saving and Emission Reduction in Nitrogen Fertilizer and Methanol Industry
• Advanced Group of Staff Service
• Hebei Province High-integrity Enterprise
• Advanced Enterprise (China Nitrogen Fertilizer Industry Association)
• Top 20 Production and Profits of Urea Fertilizers in National Nitrogen Fertilizer Industry in 2017
• Top 20 Production of Urea Fertilizers in National Nitrogen Fertilizer Industry in 2018

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employee Safety and Wellbeing
• Corporate Governance

Environmental Achievements

• Achieved 'National Green Factory' designation by the Ministry of Industry and Information Technology.
• NOx and SOx emissions in 2019 were below the annual limits set by the local environmental protection bureau.
• Upgraded flue gas desulfurization equipment, improving sulfur and dust removal.

Social Achievements

• Low employee turnover rate (4.79%).
• No safety accidents occurred in 2019.
• Implemented a teacher-apprentice system for employee development.
• Organized various employee activities (basketball games, company trips).

Governance Achievements

• Adherence to the Corporate Governance Code and Corporate Governance Report.
• Established anti-corruption company policies and reporting mechanisms.
• Implemented a supplier selection and evaluation management system.

Climate Goals & Targets

Environmental Challenges

• Rising market energy supply costs affecting competitiveness.
• Fluctuations in urea market prices.
• Unorganized emission of particulate matter from coal sheds.

Mitigation Strategies

• Product diversification (expanding product categories).
• Technological upgrades and production process transformation for energy saving and consumption reduction.
• Development of downstream urea-related products.
• Improving the problem of unorganized emission of particulate matter in coal sheds.

Supply Chain Management

Supplier Audits: Annual comprehensive evaluations of large and long-term suppliers

Responsible Procurement

• Supplier selection and evaluation management system

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Appendix 14 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

Awards & Recognition

• 2018 Advanced Unit of Energy Saving and Emission Reduction in Nitrogen Fertilizer and Methanol Industry
• Hebei Province Credit Enterprise
• 2018 Municipal Government Quality Award Organization Award
• Hebei Province Credit Enterprise Founding Unit
• Hebei Province Enterprise Safety Production Integrity Class A Certificate

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Sustainable development
• Social responsibility
• Corporate governance

Environmental Achievements

• Achieved "zero discharge" of wastewater, waste gas, and residue through technological transformation and upgrading.
• Shortlisted for the fourth batch of green manufacturing publicity lists of the Ministry of Industry and Information Technology and rated as a national green factory.
• Added UGI gasifier multi-pollution source integrated treatment project, greatly reducing carbon emissions.
• Realized complete treatment of pollutants and unorganized emissions in the fixed-bed intermittent coal gasification process.

Social Achievements

• No safety accidents occurred in 2020.
• Organized various training courses to enhance employees’ safety awareness and professionalism (394 training activities, 1,768 hours, 2,616 participants).
• Implemented heatstroke prevention measures for workers during high temperatures.
• Donated 10,000 masks to the Red Cross Society and frontline epidemic prevention personnel during the 2020 epidemic.

Governance Achievements

• Implemented a top-down management policy on ESG management.
• Board of Directors responsible for determining ESG strategy, assessing risks and opportunities, and monitoring overall ESG performance.
• Formulated anti-corruption company policies with reporting mechanisms and penalties for violations.
• Strictly abides by state laws and regulations in labor and employment and strictly prohibits the employment of child labor.

Climate Goals & Targets

Environmental Challenges

• Rise in market energy supply costs affecting competitiveness.
• Fluctuations in urea market prices affecting sales performance.
• Internal risks related to independent innovations, technology investment, management factors, and safety/environmental protection.

Mitigation Strategies

• Increased product categories to increase diversification.
• Introduced new technologies for energy saving and consumption reduction.
• Developed downstream products related to urea, expanding the industrial chain.
• Expanded professional technical personnel, developed technical strength, and improved employee quality and knowledge reserves.

Supply Chain Management

Supplier Audits: Annual comprehensive evaluations of large and long-term suppliers

Responsible Procurement

• Requires suppliers to comply with environmental, occupational safety and health, labor, human rights, and ethical standards.

Climate-Related Risks & Opportunities

Awards & Recognition

• National Green Factory
• 2020 China Top 500 Petroleum and Chemical Enterprises
• Hebei Province Leading Industry Leading Enterprise
• China Nitrogen Fertilizer Industry “Vice Chairman Unit of the Seventh Council of the Association”

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Achieved 'zero discharge' of wastewater, waste gas, and residue through technological transformation and upgrading.
• Shortlisted for the fourth batch of green manufacturing publicity lists of the Ministry of Industry and Information Technology and rated as a national green factory.
• Reduced emission intensity of nitrogen oxides and sulfur oxides by about 28% compared to the previous year.
• Reduced carbon dioxide emission intensity by about 20% compared to the previous year.

Social Achievements

• No safety accidents occurred during the reporting period.
• Organized various training courses to enhance employees' safety awareness and professionalism, with 330 training activities, 1,512 accumulated training hours, and 2,396 participants.
• Implemented heatstroke prevention measures for workers during high-temperature periods.
• Provided 10 public welfare jobs annually to help poor residents.

Governance Achievements

• Implemented a top-down ESG management policy with Board of Directors oversight.
• Complied with relevant labor laws and regulations.
• Formulated anti-corruption company policies.

Climate Goals & Targets

Environmental Challenges

• Policy risks related to continuously improving emission standards.
• Transformation risks due to surplus nitrogen and phosphorus fertilizer capacity and the end of the rapid growth period of chemical fertilizer consumption.
• Technology risks related to groundwater over-exploitation and water resource taxes.
• Environmental risks related to pollutant treatment and ecological red lines.
• Disaster risks related to equipment loss and facility damage.
• Fluctuations in urea market prices.

Mitigation Strategies

• Using new technology and processes, vigorously developing the circular economy.
• Developing water recycling technology and using Yangtze River water to reduce groundwater use.
• Strictly abiding by environmental protection laws and developing new technologies to reduce pollutant emissions.
• Organizing disaster drills and purchasing commercial insurance.
• Increasing product diversification, introducing new technologies for energy saving and consumption reduction, and promoting technological upgrading.
• Developing downstream products related to urea, expanding the industrial chain and product chain, and opening new sales channels.

Supply Chain Management

Supplier Audits: Annual comprehensive evaluations of large and long-term suppliers

Responsible Procurement

• Requirement for suppliers to comply with environmental, occupational safety and health, labor, human rights, and ethical matters.

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Vehicle urea solution
• Compound fertilizer

Awards & Recognition

• 2021 China Top 500 Petroleum and Chemical Enterprises
• Advanced unit of energy conservation and emission reduction in nitrogen fertilizer and methanol industry during the 13th Five-Year Plan period
• Science and Technology Grand Prize by China Nitrogen Fertilizer Industry Association
• Science and Technology Progress Award by Chinese Chemical Industry Society
• The Eco-friendly Development Model by China Chemical Industry News
• The Social Responsible Model by China Chemical Industry News