Climate Change Data

Environmental Metrics

ESG Focus Areas

• Human Resource Management
• Corporate Citizenship
• Occupational Health and Safety
• Supply Chain Management
• Environmental Sustainability
• Business Ethics

Environmental Achievements

• Reduced waste through optimization of processes, increased steel plate utilization, and waste recycling (95% recycling rate for steel scrap).
• Implemented 5R principles (Refuse, Reduce, Reuse, Repair, Recycle) for effective material and energy use.
• Improved energy efficiency through the use of LED lights (12% of total lighting) and solar panels for factory lighting.
• Water conservation measures in offices and factories (e.g., water recycling system).

Social Achievements

• Implemented training programs for high-potential employees ('Cypress Plan') and internal training teams ('Spring Rain Plan'), totaling 230 hours of environmental training in 2017.
• Maintained a family-friendly work environment by discouraging overtime and adhering to local labor laws.
• Provided additional commercial insurance to long-term employees.
• Supported community engagement through volunteer work and partnerships with organizations like Qingdao Ocean University.

Governance Achievements

• Established a robust corporate governance framework with an audit committee, remuneration committee, supervisory committee, and nomination committee.
• Implemented a whistleblower hotline for reporting ethical violations.
• Developed and enforced a Code of Business Conduct (since 2012) and an Employee Handbook (2017) with anti-bribery provisions.
• Annual audits conducted by independent auditing firms.

Climate Goals & Targets

Environmental Challenges

• Reducing greenhouse gas emissions from various sources (mobile sources, propane consumption, manufacturing facilities).

Mitigation Strategies

• Prioritizing low-energy consumption products and renewable energy sources.
• Meeting national energy consumption standards for new equipment.
• Reducing business travel to lower carbon emissions.
• Prioritizing local suppliers to reduce transportation energy consumption.
• Promoting carbon emission reduction throughout the supply chain.
• Installing ventilation, dust removal, and filtration systems in paint and shot blasting facilities.

Supply Chain Management

Supplier Audits: 57 suppliers audited in 2017 (7 on-site, 50 via questionnaires and document review)

Responsible Procurement

• Supplier Code of Conduct including environmental protection and anti-bribery clauses.
• Prioritization of local suppliers (over 95%).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Hong Kong Stock Exchange's revised Environmental, Social and Governance Reporting Guidelines (2015)

Certifications: OHSAS 18001 (some subsidiaries)

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Responsibility
• Governance

Environmental Achievements

• Increased equipment for controlling exhaust emissions by 75% compared to 2017.
• Reduced harmful waste generation through process improvements and material optimization.
• Recycled 3.80 tons of waste paint sludge through a water curtain system.
• Improved steel plate and profile utilization rates (3.5% and 2.5% respectively).
• Saved 5 tons of steel through waste recycling.
• Reused 30.59 tons of iron scraps in casting production.

Social Achievements

• Reduced employee turnover rate significantly from 1.80% in 2017 to 1.07% in 2018.
• Increased employee training hours from 230 in 2017 to 282 in 2018.
• Provided additional commercial insurance to long-term employees.
• Offered 6 days of paid sick leave annually to domestic employees.
• Implemented a 'stop work' policy to ensure employee safety.

Governance Achievements

• Established a reporting hotline for ethical concerns.
• Implemented a comprehensive quality management system (ISO 9001).
• Maintained a zero-tolerance policy towards bribery and corruption.
• Obtained patents for several products and technologies.

Climate Goals & Targets

Environmental Challenges

• Reducing greenhouse gas emissions from energy consumption.
• Managing harmful waste generation.
• Maintaining high safety standards to achieve zero major injuries and occupational diseases.

Mitigation Strategies

• Implementing energy-efficient equipment and renewable energy sources where feasible.
• Optimizing processes to reduce waste and improve resource utilization.
• Investing in safety training and equipment, and implementing a 'stop work' policy.
• Regularly monitoring and assessing environmental performance.

Supply Chain Management

Supplier Audits: 115 qualified suppliers; annual audits for designated suppliers; 37% of existing suppliers underwent on-site audits in 2018.

Responsible Procurement

• Supplier Code of Conduct including environmental protection and anti-bribery clauses.
• Prioritization of local suppliers to reduce transportation emissions (95% local).

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

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

Certifications: OHSAS 18001 (some subsidiaries), ISO 14001 (Qingdao Times Ocean Petroleum Equipment Co., Ltd.), ISO 9001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Awards for marine engineering cranes from Qingdao Municipal Economic and Information Commission and Qingdao Enterprise Investment & Technology Consulting Center

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Human Resource Management
• Occupational Health and Safety
• Supply Chain Management
• Business Ethics
• Community Contribution and Engagement

Environmental Achievements

• Reduced waste paint residues by 2.77 tonnes in 2020
• Reduced total waste by 4.43 tonnes in 2020
• Saved 105.2 cubic metres of fresh water throughout the year through water recycling in the exhaust gas treatment system.

Social Achievements

• Implemented two major training programs: Cedar and Spring Rain, resulting in 223 employees receiving 904 training hours.
• Maintained a low employee turnover rate (1.82% in 2020, slightly higher than 1.35% in 2019).
• Provided additional commercial insurance and paid sick leave exceeding statutory requirements for employees.

Governance Achievements

• Established a robust ESG governance structure with the Board assuming ultimate responsibility and a professional ESG working group implementing comprehensive supervision.
• Implemented a “zero tolerance” policy towards business ethics violations, including bribery and corruption.
• Established a whistle-blowing hotline for reporting business ethics violations.

Climate Goals & Targets

Environmental Challenges

• Maintaining a stable supply chain in a complex manufacturing process.
• Reducing GHG emissions from energy consumption.

Mitigation Strategies

• Prioritizing the use of low-energy consumption equipment and products.
• Considering the use of renewable energy.
• Prioritizing local suppliers to reduce transportation emissions.
• Implementing a systematic supplier management system.

Supply Chain Management

Supplier Audits: Audits conducted on specified suppliers annually; 40 new and 221 existing suppliers passed on-site assessment in 2020.

Responsible Procurement

• QHSE criteria for supplier selection; Supplier code of conduct covering environmental protection and anti-bribery; Prioritizing local suppliers (97% of total).

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Appendix 27 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

Certifications: ISO 9001, ISO 14001 (TSC Offshore)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Award for product quality and technological achievements from an unnamed institution.

Environmental Metrics

ESG Focus Areas

• Business Ethics
• Environmental Sustainability
• Corporate Citizenship Behaviours
• Supply Chain Management
• Human Resource Management

Environmental Achievements

• Reduced total GHG emissions by approximately 28% compared to 2020. Reduced GHG emission intensity by approximately 40%. Reduced waste paint residues by 4.17 tonnes in 2021. Total waste reduced in 2021 was 6.03 tonnes. Saved 168 cubic metres of fresh water throughout the year.

Social Achievements

• Average monthly employee turnover rate significantly decreased compared to 2020. Provided additional commercial insurance for employees. Provided 6 days of paid sick leave per year. Implemented two major training programs (Cedar and Spring Rain) with a total of 1287 training hours for 467 employees. Conducted 13 cross-team exchange activities to alleviate employee working pressure. No cases of occupational disease diagnosed after 62 employee physical examinations. No complaints or legal violations relating to discrimination or other employment practices, child labor, or forced labor.

Governance Achievements

• Established a solid governance structure for ESG management with Board ultimate responsibility and a professional ESG working group for comprehensive supervision. Implemented ISO 9001 Quality Management System. Obtained several product awards recognizing product quality and technological achievements. Implemented anti-corruption measures including a Code of Business Conduct, whistle-blowing channels, and anti-corruption training.

Climate Goals & Targets

Environmental Challenges

• Global warming and GHG emissions.
• Supply chain disruptions due to COVID-19 (increased packaging and transportation).

Mitigation Strategies

• Adopted various policies and measures to control energy consumption and reduce GHG emissions (prioritizing low-energy equipment, considering renewable energy, avoiding unnecessary trips, prioritizing local suppliers). Strengthened improvement measures and management approaches of waste emissions.

Supply Chain Management

Supplier Audits: Audits conducted on specified suppliers annually; 45 new and 461 existing suppliers passed on-site assessment in 2021.

Responsible Procurement

• QHSE criteria used for supplier selection. Suppliers required to sign and comply with a code of conduct covering environmental protection and anti-bribery. Prioritization of local suppliers (98% of total supply base).

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Appendix 27 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, Global Reporting Initiative Guidelines

Certifications: ISO 9001, ISO 14001 (TSC Offshore), OHSAS 18001 (some subsidiaries)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Award for product quality and technological achievements (name of award and issuing authority not specified).

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Reduced GHG emissions by 17% compared to 2022 (2,947.68 tonnes of CO2e in 2023 vs 3,847.76 tonnes in 2022)
• Reduced diesel consumption by 91%
• Reduced acetylene consumption by 76%
• Reduced waste paint residues by 7.00 tonnes
• Reduced dust emissions by 0.15 tonnes
• Saved 193 cubic meters of fresh water through water recycling in spray-painting

Social Achievements

• Decreased average monthly employee turnover rate by 14% (0.43% in 2023 vs 0.50% in 2022)
• Provided additional commercial insurance and paid sick leave exceeding statutory requirements for employees
• Organized various themed activities under China Merchants’ “Company Day” to enhance employee engagement
• Achieved OHSAS 18001 and ISO 45001 certifications for some subsidiaries
• Conducted annual free-of-charge physical examinations for 247 employees, with no occupational diseases diagnosed
• Provided 1,862 employees with 2,760.5 training hours on occupational health and safety

Governance Achievements

• Established a three-level ESG management structure (ESG Committee, ESG leading group, ESG working group)
• Implemented a “zero tolerance” policy towards business ethics violations
• Established a whistle-blowing hotline and email
• Developed and implemented a “Code of Business Conduct” and “Employee Handbook” including anti-corruption clauses
• Conducted anti-corruption training for directors and employees
• Appointed an independent auditing agency for annual audits

Climate Goals & Targets

Environmental Challenges

• Significant increase in total waste discharge in 2023 due to first-set products generating more scrap steel
• Potential climate-related risks (although not materially affected in 2023)

Mitigation Strategies

• Continued implementation of measures to reduce waste emissions
• Exploring new opportunities in the new energy industry to enhance climate risk resilience
• Implementing energy-saving management system indicators, updating energy-saving equipment, and improving efficiency

Supply Chain Management

Supplier Audits: Audits conducted on specified suppliers annually

Responsible Procurement

• QHSE criteria used for supplier selection
• Suppliers required to sign and comply with a code of conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Exploring new opportunities in the new energy industry

Reporting Standards

Frameworks Used: GRI, Hong Kong Stock Exchange’s Environmental, Social and Governance Reporting Guide (Appendix 27 to the Main Board Listing Rules)

Certifications: ISO 9001, OHSAS 18001 (some subsidiaries), ISO 45001:2018 (some subsidiaries)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Best ESG Award (4th Cailian Press•EBS Forum and Award Ceremony)
• Sustainability Value Communication Award (4th Cailian Press Corporate ESG Forum)