Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Zhendan Expressway, the first green recycling low-carbon model road in Jiangsu, was successfully completed and open to traffic in September 2018.

Social Achievements

• Donated RMB1.0 million to support the “Targeted Poverty Alleviation Program in Guannan County”, including infrastructure construction, development of integrated farming and investment in emerging industries.

Governance Achievements

• Established and improved various operational rules in accordance with the modern corporate system. Complied with the requirements of the Company Law and China Securities Regulatory Commission and fully adopted the Corporate Governance Code.

Climate Goals & Targets

Environmental Challenges

• Risks associated with industry policy (changes in national macro-control policy and taxation policy, uncertainties over policies regarding toll rates and toll collection periods); Risks associated with project investment (future returns may fall short of expectations, investment in financial products may involve risks of losses); Risks associated with lower-than-expected rate of destocking (changes in market environment and policies may affect the sales cycle and sales performance of the Company’s real estate business); Safety risks associated with road management (increasing traffic volume makes it more challenging to maintain road safety).

Mitigation Strategies

• Establish a dynamic tracking and assessment mechanism in response to policy-related risks; Conduct a full assessment of internal and external factors affecting the performance of projects, strengthen internal management, standardize management systems, and establish scientific investment decision-making procedures; Set up a tracking mechanism to stay up-to-date with policies concerning the industry and the development trend of the macro-economy and the industry; Strengthen training on safe operation, enhance employees’ awareness of operation safety and optimize the accountability and assessment system.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: PRC Accounting Standards, Hong Kong Companies Ordinance, Hong Kong Listing Rules

Third-party Assurance: Deloitte Touche Tohmatsu Certified Public Accountants LLP

Awards & Recognition

• Award for Top 100 Companies by Value Among Companies Listed on the Main Board in the “Twelfth Competition of Listed Companies in the PRC by Value”, 2018 “Golden Wing Award” Hong Kong Stock Connect Investment Return Ranking; 2018 China A-share Listed Company Zijin Innovation Award

Environmental Metrics

ESG Focus Areas

• Green Development
• Safe Traffic
• Smooth Traffic
• Heartfelt Services
• Innovative Growth
• Reform and Transformation

Environmental Achievements

• Invested RMB 7.4668 million in environmental protection.
• Reduced fuel consumption cost by 23.12% and vehicle cost by 24.06% compared to the previous year.
• Widely used LED lights and recycled rainwater to reduce energy waste.
• Reduced seven vehicles in service areas and canceled vehicle renting service at some areas.
• 100% recovery rate of milled materials in asphalt pavement maintenance.
• Built 2,404 meters of new sound barriers to reduce noise pollution.

Social Achievements

• Employee satisfaction rate reached 92.30%.
• 100% labor contract signing rate and social insurance coverage.
• Helped 190 employees and granted RMB 173,300 staff relief fund to employees in extreme difficulties.
• Organized 4 anti-corruption and work ethics trainings, covering 800 participants.
• Completed investigation and rectification of 886 integrity risk points.
• Launched the “Book Reading · Young Staff Training Program” with 83 participants.
• Average training hours per employee reached 19 hours.

Governance Achievements

• Revised procedures of general meetings of shareholders, meeting of the board of directors and meeting of the supervisory committee.
• Improved compliance, independence and transparency of corporate affairs.
• Held one annual general meeting of shareholders, one interim general meeting of shareholders, nine meetings of the board of directors, and eight meetings of the supervisory committee.
• Promoted the development and management of a comprehensive legal risk prevention and control system.
• Ensured 100% coverage of internal and external legal review of major contracts, decisions, and regulations.
• Issued 54 public announcements, held over 50 investors’ meetings, more than 10 strategic meetings, and over 20 teleconferences.
• Organized two overseas roadshows and over 20 face-to-face investors’ meetings.

Climate Goals & Targets

Environmental Challenges

• Impact of climate change on transportation due to increased extreme weather events.
• Increasing transportation demand and shrinking natural resources.
• Outdated manual cleaning method with low efficiency and great danger for highway cleaning.

Mitigation Strategies

• Improved emergency response mechanism and formulated measures against winter cold, typhoon, and flood.
• Integrated energy consumption statistics into performance appraisal and applied energy-saving technologies.
• Innovated the “2 + 1” scheme of “mechanical based and manual assisted” road mobile cleaning.

Supply Chain Management

Responsible Procurement

• Relies on the procurement center of Jiangsu Communications Holdings Co., Ltd. to select suppliers.
• Revised Contract Management Measures, and Bidding and Procurement Management Measures.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (typhoon, fog, rain, snow)

Reporting Standards

Frameworks Used: HK-ESG, GRI Standards

Certifications: ISO 14001, OHSAS 18001

Awards & Recognition

• “Golden Quality” Social Responsibility Award
• Growing Enterprise Award of “GoldenBee CSR Report Honor Roll 2019”
• The Second “Top 10 Credit Units” in the Transportation Industry of Jiangsu Province
• 2018 Work Safety Assessment Excellent Unit
• “National Reliable QC Team”
• Top Ten Cases of Ideological and Political Work of Employees
• 2018 Outstanding Youth Learning Club in Jiangsu
• Outstanding Service Method was rated as the Top 10 Advanced Operation Methods

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Social Responsibility
• Environmental Management
• Win-win Partnership
• Employee Development
• Harmonious Communities

Environmental Achievements

• Invested RMB 9.4407 million in environmental protection.
• Achieved 100% recycling rate of waste asphalt residue and other waste materials.
• Usage rate of seam tape, potting adhesive, and other low-carbon maintenance materials reached 100%.

Social Achievements

• Launched public welfare activities like “Donation Day” and “Clothes Donation”.
• Invested RMB 570,000 to aid the development of Shuangxi Village and RMB 400,000 to support Guannan County.
• 263 employees took the vocational qualification exam for Level 5 Hindrance Clearance, and 47 employees were assessed and promoted in 2021.
• Employee training coverage reached 100%, with each employee receiving an average of 38 hours of training.

Governance Achievements

• Granted the Tianma Award – Best Board of Directors and 2021 Golden Quality in ESG Award for Listed Companies.
• Revised the Regulation on Connected Transactions, Regulation on Information Disclosure, Rules of Procedures for the Strategy Committee, and Independent Directors’ Code.
• Formulated the Detailed Rules for the Authorization of the Board of Directors.
• Neither the Company nor its employees were involved in any corruption-related litigation in 2021.

Climate Goals & Targets

Environmental Challenges

• Climate change and its impact on expressway operations (extreme weather events).
• Maintaining high service quality while managing increasing service years of roads and natural aging.

Mitigation Strategies

• Formulated the Emergency Plan for Severe Weather and Road Deicing.
• Strengthened monitoring, early warning, prevention, and control of extreme weather events.
• Upgraded lighting facilities and electromechanical equipment to increase energy efficiency.
• Used more environmentally friendly materials and energy-saving technologies during road maintenance.
• Implemented a quality assurance and management system and incorporated scientific quality management theories and approaches into practices.

Supply Chain Management

Supplier Audits: 713 suppliers

Responsible Procurement

• Transparent procurement process with full information disclosure.
• Consideration of supplier performance in business compliance, environmental protection, energy conservation and emission reduction, and occupational health and safety.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions impacting expressway operations.

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and services.

Reporting Standards

Frameworks Used: HK-ESG, GRI Standards

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Low-carbon maintenance materials (seam tape, potting adhesive).

Awards & Recognition

• Tianma Award – Best Board of Directors
• 2021 Golden Quality in ESG Award for Listed Companies
• Nomination for the Top Ten Youth Volunteer Projects in Jiangsu Province