Huzhou Gas Co., Ltd. (Established in the People’s Republic of China with limited liability)
Climate Impact & Sustainability Data (2022)
Reporting Period: 2022
Environmental Metrics
ESG Focus Areas
- carbon neutrality
- carbon peaking
- energy and environmental protection
- green, energy-saving and low-carbon
- renewable energy (photovoltaic)
Environmental Achievements
- No liability accident throughout the year, and passed the safety production assessment of the expert group under the State Council Security Committee.
- Actively developed clean energy such as photovoltaic power generation.
Social Achievements
- Strengthened employee training to enhance professional level and overall quality.
- Provided employees with competitive remuneration packages.
- Made charitable contributions of approximately RMB315,000 and donations of articles worth approximately RMB14,900.
Governance Achievements
- Complied with all code provisions as set out in the CG Code.
- Established the Remuneration Committee to formulate remuneration policies.
- Established the Audit Committee, Nomination Committee and Remuneration Committee for overseeing particular aspects of the Company’s affairs.
- Implemented a set of effective procedures for appointment of new Directors.
- Implemented a Board’s Independence Evaluation Mechanism.
- Adopted a Board Diversity Policy.
- Adopted a Director Nomination Policy.
- Implemented a Shareholders’ Communication Policy.
- Implemented a Whistleblowing Policy and Anti-Corruption Policy.
Climate Goals & Targets
Short-term Goals:
- Expand into distributed photovoltaic power generation business by the end of 2023
- Enhance the sales volume of PNG by upgrading pipeline network and operational facilities by the end of 2024
- Expand business to other geographical areas through strategic acquisition by the end of 2024
- Promote the use of heat energy from vapour generated by natural gas through natural gas boilers by the end of 2024
Environmental Challenges
- Increase in gas source costs and unprecedented pressure on safe production.
- PNG purchase and sale price inversion (April-May 2022) due to Zhejiang Province’s coordination and adjustment of gas supply price to ensure stable gas supply, in order to hedge the sharp hike in energy prices caused by Russia-Ukraine War and other tensions in international relations.
- Loss from the purchase and sale price inversion generated from residential gas consumption.
Mitigation Strategies
- Received gas supply guarantee subsidy of RMB85.00 million from the special fiscal fund of Huzhou Finance Bureau to compensate for the loss caused by the PNG Price Inversion.
- Received government grants of RMB14.46 million to compensate for the loss from the purchase and sale price inversion generated from residential gas consumption during the heating season.