Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced total GHG emissions by approximately 3.47% from approximately 3,072.11 tCO2e in 2019 to approximately 2,965.43 tCO2e in 2020. This decrease was mainly due to COVID-19 lockdown measures.
• Reduced total non-hazardous waste disposal by approximately 47.96% from approximately 376.98 tonnes in 2019 to approximately 196.17 tonnes in 2020.
• Reduced total packaging materials by approximately 85.85% from approximately 15.76 tonnes in 2019 to approximately 2.23 tonnes in 2020.
• Obtained various awards for innovative green building technologies and applications.

Social Achievements

• Established a reasonable, competitive, and legal remuneration system.
• Implemented a complete “Salary Management System” and “Total Payroll Management Plan”.
• Provided various statutory and non-statutory benefits to employees.
• Established appropriate channels for employee communication with management.

Governance Achievements

• Established an ESG Taskforce to oversee ESG initiatives and report to the board of directors.
• Implemented policies to combat corruption and other improper business practices.
• Signed integrity agreements with customers to promote ethical business conduct.

Climate Goals & Targets

Environmental Challenges

• Minimizing environmental impact from daily operations (exhaust gas emissions, waste generation, water consumption).
• Maintaining a safe working environment and preventing occupational hazards.

Mitigation Strategies

• Implemented various emission reduction measures for vehicles (meeting emission standards, prohibiting idling, using electric vehicles).
• Implemented energy-saving measures in office buildings (human-induced lighting, air conditioning, fresh air control).
• Established waste management procedures and plans for hazardous and non-hazardous waste.
• Implemented water-saving measures (using water-saving appliances, collecting rainwater).
• Implemented occupational health and safety management system (OHSAS 18001 certification).

Supply Chain Management

Responsible Procurement

• Prioritizing suppliers with ISO9001, ISO14001, and OHSAS18001 certifications.

Climate-Related Risks & Opportunities

Opportunities

• Development and application of renewable energy technologies.

Reporting Standards

Frameworks Used: Hong Kong Stock Exchange’s ESG Reporting Guide

Certifications: OHSAS 18001

Sustainable Products & Innovation

• Building Integrated Photovoltaic (BIPV) technology; solar thermal systems.

Awards & Recognition

• Various awards for innovative green building technologies and applications (detailed in the report).

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Sustainable Development
• Employee Well-being
• Community Engagement
• Supply Chain Management
• Climate Change
• Intellectual Property Rights
• Anti-corruption

Environmental Achievements

• Reduced total GHG emissions by approximately 10.23% from approximately 2,965.43 tCO2e in 2020 to approximately 2,662.21 tCO2e in 2021.
• Obtained ISO 14001 Environment Management System Certification.
• Research and Development Building of Shuifa Singyes Energy uses solar energy to generate electricity, reducing emissions of nitrogen oxides, sulfur oxides, and other exhaust gas emissions.

Social Achievements

• Established a relatively reasonable, competitive and legal remuneration system.
• Established a complete “Salary Management System”, “Employee Remuneration Management Measures” and “Total Payroll Management Plan”.
• Obtained the ISO 45001 Occupational Health and Safety Management System Certification.
• No accidents resulting in death or serious physical injury in the last three years.

Governance Achievements

• Established the ESG working group responsible for collecting relevant information and data on ESG aspects.
• Established the “Integrity Communication System” and the “2022 Responsibility Letter for the Construction of an Integrity CCP”.
• Established an anonymous reporting box and an OA reporting window to encourage employees to report corruption and bribery.

Climate Goals & Targets

Environmental Challenges

• Increasing frequency and severity of extreme weather events increasing the risk of power shortage, supply chain disruptions, and asset damage.
• Tightening climate-related regulations and increased compliance costs.
• Potential reputational damage from failure to meet climate change compliance requirements.

Mitigation Strategies

• Identifying and prioritizing climate risks with severe impact and adopting preventive measures.
• Studying the possibility of changing its business model to reduce the impact of climate risks.
• Regularly monitoring existing and emerging trends, policies, and regulations related to climate change.
• Setting targets to reduce GHG emissions and energy consumption.

Supply Chain Management

Responsible Procurement

• Sunshine Procurement Management Measures
• New Supplier Review Procedures

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (extreme cold or heat, storms, rainstorms, and typhoons)

Transition Risks

• Increased taxation
• Climate-related disclosures requirements

Reporting Standards

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

Certifications: ISO 14001, ISO 45001

Sustainable Products & Innovation

• Building Integrated Photovoltaic (BIPV) Technology

Awards & Recognition

• National Smart Photovoltaic Pilot Demonstration Project
• Independent Innovation Advancement Award of Innovation Zhuhai Science and Technology Award of 2021
• Xiangzhou District’s First Batch of Projects to be Funded by Special Fund for Technology Innovation of 2021
• Ranked 38 in Xiangzhou District High-tech Enterprises of Comprehensive Innovation Strength
• Ranked 51 in Zhuhai Top 100 Enterprises of Economic Contribution
• Ranked 48 in Zhuhai Top 100 Enterprises of Comprehensive Innovation Strength
• Ranked 93 in Zhuhai Top 100 Enterprises of Comprehensive Innovation Strength
• Zhuhai Intellectual Property Advantaged Enterprise of 2021
• 3rd Curtain Wall Technology Innovation Video Competition Second Prize for the Application of Curtain Wall Technology in Complex Space Surface
• 3rd Curtain Wall Technology Innovation Video Competition Third Prize for Research and Development Building of Shuifa Singyes Industrial Park

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Sustainable Development
• Employee Well-being
• Community Engagement
• Supply Chain Management
• Climate Change Mitigation
• Anti-corruption
• Intellectual Property Protection

Environmental Achievements

• Completed approximately 800 MW Wind Power EPC projects in 2022.
• Ranked 209th amongst Top Global 500 New Energy Enterprises.
• Ranked 19th amongst Contractors for Photovoltaic Power Stations in China.
• Ranked 5th in Construction and Decoration Industry in China.
• Won the first place in 2021 Guangdong Photovoltaic Energy System Standard Board.
• Acquired 55 additional patents.
• Green building-related technologies awarded 2022 China Energy Conservation Association Advanced Award for Energy Saving and Emission Reduction Technology and the Second Prize of the Science and Technology Award of the China Renewable Energy Industries Association.
• Photovoltaic series intelligent fitting system selected as one of the best high-tech products of Guangdong Province in 2022.
• Obtained ISO 14001 Environment Management System Certification.

Social Achievements

• Established a people-oriented corporate culture.
• Implemented standardized labor employment management.
• Established relevant personnel management policies (Employee Benefits Management Plan, Total Payroll Management Plan, Shuifa Singyes Energy Employee Handbook).
• Provided employees with a healthy, sunny, and positive working atmosphere.
• Complied with relevant laws and regulations, including the Labour Law of the People’s Republic of China and the Labour Contract Law of the People’s Republic of China.
• Established a reasonable, competitive, and legal remuneration system.
• Implemented a five-day work week regime with 8 hours of work per day.
• Provided statutory holidays and paid leaves.
• Provided five insurances and housing provident fund to employees.
• Provided additional benefits such as working meals, wedding cash gift, holiday relief payments, free medical examinations, and trainings.
• Provided transportation, housing, seniority, and high-temperature subsidies.
• Provided performance bonuses and rewards for patent and paper completion.
• Established appropriate channels for employee-senior management communication.
• Obtained ISO 45001 Occupational Health and Safety Management System Certification.

Governance Achievements

• Established an ESG working group to oversee ESG issues.
• Board members discuss ESG matters annually.
• Board reviews Group’s business progress towards ESG objectives and adjusts policies as needed.
• Prepared the ESG report in accordance with the ESG Reporting Guide (Appendix 27 of the Rules Governing the Listing of Securities on the Main Board of the Stock Exchange of Hong Kong Limited).
• Established the “Integrity Communication System” and the “Responsibility Letter for the Construction and supervision of an Integrity CCP”.
• Implemented a clear avoidance system prohibiting direct leadership relationships among employees with close family ties.
• Signed “Integrity Agreements” with customers.
• Distributed anti-corruption materials and provided anti-corruption training to directors and employees.

Climate Goals & Targets

Environmental Challenges

• Conflict between rapid economic development and energy shortage and environmental deterioration.
• Extreme weather events increasing risk of power shortage, supply chain disruptions, asset damage, operational disruption, revenue decrease, and increased repair costs.
• Government-imposed tightening measures (increased taxation) affecting business operations.
• Increased compliance costs due to Hong Kong Stock Exchange requirements for climate-related disclosures.
• Risk of claims and litigation due to failure to meet climate change compliance requirements.
• Potential damage to corporate reputation due to slow response to climate change.

Mitigation Strategies

• Promoting emission reduction from source and enhancing energy efficiency.
• Implementing emission reduction measures for vehicles (meeting emission standards, prohibiting idling, renting electric vehicles, regular maintenance).
• Actively adopting electricity saving and energy conservation measures.
• Encouraging employees to replace overseas business trips with video conferences.
• Planting trees to increase carbon dioxide absorption.
• Setting targets to reduce GHG emissions and energy consumption.
• Formulating relevant policies and procedures to manage and review climate-related risks.
• Implementing risk prevention work according to the “Safety Management System for Typhoon, Flood and Flood Crossing Prevention”.
• Formulating emergency plans to avoid and reduce casualties and property losses.
• Studying the possibility of changing the business model to reduce the impact of extreme weather events.
• Regularly monitoring existing and emerging trends, policies, and regulations related to climate change.
• Formulating “Sunshine Procurement Management Measures” for green supply chain management.
• Requiring suppliers to regulate their environmental and social practices.
• Prioritizing suppliers with relevant certifications (ISO9001, ISO14001, OHSAS18001).
• Conducting site visits and field sampling inspections of suppliers.
• Establishing the “Product Monitoring, Measurement and Control Procedures”, “Construction Process Quality Inspection and Acceptance Management System”, “Construction Quality Management System”, and “Quality Management Inspection, Analysis, Evaluation and Improvement Management System” for quality control.
• Employing third-party accredited testing centers.
• Establishing the “Customer Satisfaction Control Procedure” and “Customer Service Control Procedure” for customer service.
• Establishing the “Confidential Policy” for privacy protection.
• Signing confidentiality agreements with suppliers and customers.

Supply Chain Management

Supplier Audits: Number of suppliers: 654 in 2022; 542 in 2021. Site visits and field sampling inspections conducted.

Responsible Procurement

• Prioritizing suppliers with ISO9001, ISO14001, and OHSAS18001 certifications.
• Prioritizing suppliers that apply environmentally friendly products and service practices.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (extreme cold or heat, storms, rainstorms, typhoons) increasing risk of power shortage, supply chain disruptions, asset damage, operational disruption, revenue decrease, and increased repair costs.
• Potential for employee injury or death.

Transition Risks

• Government-imposed tightening measures (increased taxation) affecting business operations.
• Increased compliance costs due to Hong Kong Stock Exchange requirements for climate-related disclosures.
• Risk of claims and litigation due to failure to meet climate change compliance requirements.
• Potential damage to corporate reputation due to slow response to climate change.

Opportunities

• Development of energy-efficient products and services.

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix 27 of the Rules Governing the Listing of Securities on the Main Board of the Stock Exchange of Hong Kong Limited)

Certifications: ISO 14001, ISO 45001

Sustainable Products & Innovation

• BIPV Technology

Awards & Recognition

• 2022 China Energy Conservation Association Advanced Award for Energy Saving and Emission Reduction Technology
• Second Prize of the Science and Technology Award of the China Renewable Energy Industries Association
• Guangdong Province high-tech product award

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Sustainable Development
• Employee Well-being
• Community Engagement
• Climate Change Mitigation
• Supply Chain Responsibility
• Anti-corruption

Environmental Achievements

• Ranked 352nd amongst Top Global 500 New Energy Enterprises
• Ranked 18th amongst Contractors for Photovoltaic Power Stations in China
• Ranked 5th in Construction and Decoration Industry in China
• Won first place in 2022 Guangdong Photovoltaic Energy System Standard Board
• Acquired 58 additional patents
• Green building-related technologies awarded Second Prize in the 4th Engineering Construction Industry BIM Competition in 2023
• New High-Transparent Liquid Crystal Dimming film selected as Distinguished High-tech Products in Guangdong in 2023
• Obtained ISO 14001 Environment Management System Certification

Social Achievements

• Established ESG working group
• Implemented standardized labor employment management
• Established a complete “Salary Management System”, “Employee Remuneration Management Measures” and “Total Payroll Management Plan”
• Provided various statutory and non-statutory benefits to employees
• Implemented a five-day work week regime with 8 hours of work per day
• Provided paid leaves such as marriage leave, maternity leave, etc.
• Provided “five insurances and housing provident fund” to employees
• Provided additional benefits such as working meals, wedding cash gift, etc.
• Provided performance bonuses and rewards for patent and paper completion

Governance Achievements

• Established ESG Governance Structure
• Established the ESG working group
• Established the “Integrity Communication System” and the “Responsibility Letter for the Construction and supervision of an Integrity CCP”
• Implemented a clear avoidance system prohibiting direct leadership relationships among employees with family ties
• Signed an “Integrity Agreement” with customers
• Established relevant reporting procedures such as setting up an anonymous reporting box and an OA reporting window
• Provided anti-corruption training to directors and employees at least once a year

Climate Goals & Targets

Environmental Challenges

• Conflict between rapid economic development and energy shortage as well as environmental deterioration
• Increasing frequency and severity of extreme weather events
• Tightening climate-related laws and regulations
• Increased compliance costs
• Potential reputational damage from failure to meet climate change compliance requirements

Mitigation Strategies

• Promoting emission reduction from source and enhancing energy efficiency
• Actively adopting electricity saving and energy conservation measures
• Setting targets to reduce GHG emissions and energy consumption
• Regularly monitoring existing and emerging trends, policies and regulations related to climate change
• Formulating relevant policies and procedures to manage and review climate-related risks
• Implementing risk prevention work in accordance with the “Safety Management System for Typhoon, Flood and Flood Crossing Prevention”
• Formulating emergency plans to avoid and reduce casualties and property losses
• Studying the possibility of changing its business model to reduce and avoid the severe impact of risks

Supply Chain Management

Responsible Procurement

• Public bidding procurement
• Prioritizing suppliers with ISO9001, ISO14001, and OHSAS18001 certifications
• Prioritizing suppliers that apply environmentally friendly products and service practices
• Conducting site visits and field sampling inspections

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (extreme cold or heat, storms, rainstorms, and typhoons)
• Power shortage
• Supply chain disruptions
• Asset damage
• Disruption of operations
• Decreased revenue
• Increased repair and restoration costs
• Employee injuries or casualties

Transition Risks

• Increased taxation
• Increased compliance costs
• Reputational damage from failure to meet climate change compliance requirements

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix 27 of the Rules Governing the Listing of Securities on the Main Board of the Stock Exchange of Hong Kong Limited)

Certifications: ISO 14001, ISO 45001

Sustainable Products & Innovation

• Photovoltaic components as building materials (BIPV)
• New High-Transparent Liquid Crystal Dimming film

Awards & Recognition

• 2022 Zhuhai Science and Technology Innovation Star
• Second Prize in the 4th Engineering Construction Industry BIM Competition
• 2022 Excellent Case of Corporate Green and Low-Carbon Development
• First Prize in Science and Technology Award of Guangdong High-Tech Enterprise Association
• Second Prize in CECS Standard Science and Technology Innovation Award
• 2022 Innovative Products in Zhuhai High-Tech Zone
• 2023 Distinguished High-tech Products in Guangdong