Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employment and Labour Practices
• Operating Practices
• Community Investment

Environmental Achievements

• Reduced non-hazardous solid waste generation (excluding cylinder gas bottles) in the reporting period compared to the previous year.
• Decreased consumption of liquefied gas and natural gas in the reporting period compared to the previous year.
• Decreased electricity utilization in the reporting period compared to the previous year.

Social Achievements

• Complied with labor laws and regulations; no child or forced labor employed.
• Improved salary system and performance management mechanism.
• Organized various after-work activities to enhance employee cohesion and reduce work pressure.

Governance Achievements

• Established anti-corruption management system with clear and severe penalties for violations.
• Complied with relevant laws and regulations regarding bribery, extortion, fraud, and money laundering; no significant violations reported.

Climate Goals & Targets

Environmental Challenges

• The report period is three months shorter than the previous year due to a change in the financial year-end date, reducing comparability.
• Increased consumption of gasoline and non-hazardous wastewater in the reporting period compared to the previous year.

Mitigation Strategies

• Implemented various energy-saving and emission-reduction measures (detailed in the report).
• Regularly maintained and repaired wastewater pipelines to prevent leakage.
• Implemented measures to control fuel usage in business and non-business vehicles.

Supply Chain Management

Responsible Procurement

• Compliance with tendering and bidding laws
• Clear supplier selection, introduction, and evaluation standards

Climate-Related Risks & Opportunities

Awards & Recognition

• Excellent Unit of Target Responsibilities Assessment
• Winning Unit of Safety Production Management
• Advanced Unit of Safety Production
• Advanced Unit of Peak Gas Supply
• 2nd Level of Enterprises of Standardization Safety Production

Environmental Metrics

ESG Focus Areas

• Safety Operation
• Employee Welfare
• Environmental Protection
• Sustainable Development
• Integrity and Compliance
• Addressing Climate Change
• Anti-corruption

Environmental Achievements

• Reduced non-hazardous solid waste emission by approximately 114.27 tons or 13.16%
• Reduced non-hazardous wastewater discharge by approximately 6,419.49 tons or 9.61%
• Reduced Scope 1 GHG emissions by approximately 1,009.99 tons or 28.05%
• Reduced gasoline consumption by approximately 38.89 tons or 16.64%
• Reduced diesel oil consumption by approximately 289.29 tons or 32.87%
• Reduced water consumption by approximately 8,024.37 tons or 9.61%
• Reduced packaging materials used for finished products by approximately 776.97 tons or 36.97%

Social Achievements

• 100% problem resolution rate for 135 customer complaints
• No material labor disputes occurred
• Organized 35,313 hours of training for 1,169 participants (30.21 hours per person)
• Actively participated in community activities with 366 people participating for a total of 147.33 hours

Governance Achievements

• Established effective ESG management mechanism with clear governance structure
• Established anti-corruption systems and implemented system revisions and enforcement at all levels
• Established a complete management system to prevent violations of business ethics or laws and regulations
• Complied with laws and regulations concerning the prevention of bribery, extortion, money laundering, and fraud

Climate Goals & Targets

Environmental Challenges

• Extreme weather affecting gas equipment and supply
• Severe weather affecting project construction quality and employee safety
• Warm winter reducing gas consumption
• Winter increasing gas consumption
• Uncertainty in weather change prediction causing excess or shortage of gas sources
• Climate change posing potential risks to project construction

Mitigation Strategies

• Regular inspection, maintenance, and reinforcement of equipment
• Relevant contingency plans to ensure emergency rescue materials are available
• Safety training and emergency drills for employees
• Improved engineering construction system in terms of severe weather
• Improved management skills to make up for the loss caused by the reduction of gas consumption
• Exploring suitable gas sources to enhance emergency supply guarantee capacity
• Formulating corresponding emergency plans and connecting upstream gas sources
• Assessing geological and climatic conditions to predict potential harm caused by climate change and formulating risk prevention and control plans

Supply Chain Management

Supplier Audits: Regular reviews and assessments of suppliers' compliance; supplier assessments evaluating occupational health and safety, environmental management, and other related aspects.

Responsible Procurement

• Adherence to "The Bidding Law of the People's Republic of China"
• Requirement for suppliers to meet environmental protection and employee health and safety expectations
• Cautious supplier selection, introduction, and assessment standards
• Standardization of business ethics in bidding and cooperation

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters (typhoons, floods, freezing, rainstorms)
• Severe weather
• Warm winter
• Winter weather
• Uncertainty in weather change prediction

Reporting Standards

Frameworks Used: Appendix 27 of “Environmental, Social and Governance Reporting Guide” of The Stock Exchange of Hong Kong Limited

Awards & Recognition

• Xi'an Zhongmin: "Outstanding Enterprise (Institution) Unit"
• Chongqing Zhongmin: "Worker Pioneer"

Environmental Metrics

ESG Focus Areas

• Production Safety
• Anti-corruption and bribery
• Sustainable and stable development and risk management
• Integrity and compliance
• Employee welfare
• Responding to climate change

Environmental Achievements

• Reduced non-hazardous wastewater discharge volume by 11,389.79 tons or 18.87% compared to the same period last year.
• Decreased paper usage by about 0.36 tons or 3.11% compared to the same period last year.
• Decreased packaging materials used for finished products by about 44.96 tons or 3.39% compared to the same period last year.

Social Achievements

• Number of working days lost due to work-related injury decreased from 540 in 2022 to 65 in 2023.
• Organized approximately 39,300 hours of training, with 1,778 participant-hours, resulting in an average of 22.1 hours of training per person.
• 100% problem resolution rate for 56 customer complaints.

Governance Achievements

• Established an anti-corruption management system and implemented anti-corruption training programs.
• No confirmed illegal or regulatory violations related to employment, health and safety, and labor standards.

Climate Goals & Targets

Environmental Challenges

• Increased Scope 1 greenhouse gas emissions due to increased market expansion activities and safety inspections after the pandemic.
• Increased Scope 2 greenhouse gas emissions due to extreme weather, electrical operations, and the addition of new offices.
• Uncertainty in weather change prediction could cause excess or shortage of gas sources.

Mitigation Strategies

• Regular inspection, maintenance, and reinforcement of equipment to prevent potential safety risks from natural disasters.
• Formulated relevant contingency plans to ensure that emergency rescue materials are available.
• Strengthened safety training and emergency drills for employees.
• Formulated corresponding emergency plans and connected upstream gas sources to ensure supply capacity.

Supply Chain Management

Supplier Audits: Basic assessment of all 203 key suppliers.

Responsible Procurement

• Fairness, justice, and transparency in supplier selection.
• Compliance review and assessment of suppliers.
• Supplier delisting for serious violations.

Climate-Related Risks & Opportunities

Physical Risks

• Natural calamities (typhoons, floods, freezing, rainstorms)
• Bad weather
• Warm winter weather
• Winter weather

Transition Risks

• Uncertainty in weather change prediction

Awards & Recognition

• Advanced Unit in the Housing and Urban-Rural Construction Industry (Fuping Zhongmin)
• Worker Pioneer (Zhenfeng Ping’an Gas, Chongqing Zhongmin)
• May 1st Labor Award (Zhenfeng Ping’an Gas)

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Reduced profit contribution from joint ventures.

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed