Climate Change Data

Environmental Metrics

ESG Focus Areas

• Clean energy development
• Environmental improvement and protection
• Safe and reliable gas supply
• Customer service
• Employee well-being
• Social contribution
• Responsible governance
• Compliance
• Supply chain management

Environmental Achievements

• Reduced emissions from coal combustion through coal-to-gas conversion, equivalent to the annual carbon absorption of 170 million trees.
• Improved BOG system efficiency, increasing raw gas pretreatment and improving energy efficiency.
• Implemented energy conservation measures to reduce energy usage and greenhouse gas emissions.

Social Achievements

• Provided gas connection services to 382,591 rural households in Henan.
• Conducted various employee training programs totaling nearly 700 hours.
• Organized various employee activities to enhance corporate cohesion.
• Established Tianlun Charity Fund, providing assistance to 25 poor children.

Governance Achievements

• Established a sound ESG management organization structure.
• Implemented anti-corruption policies and conducted integrity promotion activities.
• Improved customer service system with multiple communication channels and complaint management policy.

Climate Goals & Targets

Environmental Challenges

• Reducing greenhouse gas emissions
• Managing hazardous waste
• Ensuring safe gas usage by customers

Mitigation Strategies

• Promoting energy conservation and emission reduction measures.
• Entrusting qualified hazardous waste disposal agencies for waste management.
• Conducting regular household safety inspections and safety publicity activities.

Supply Chain Management

Responsible Procurement

• Open bidding
• On-time contract execution
• Transparent procurement
• Supplier certifications (quality, environmental, and occupational health and safety)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ESG Reporting Guide

Awards & Recognition

• Henan Charity Special Contribution Award 2017
• Outstanding Charity Fund 2017

Environmental Metrics

ESG Focus Areas

• Climate Change
• Safety
• Supply Chain Management
• Community Relations
• Employee Development
• Corporate Governance
• Resource Conservation

Environmental Achievements

• Recovered 3.09 million m3 of boil-off gas (BOG)
• Sold 2.28 billion m3 of natural gas, equivalent to replacing 3.0327 million tonnes of standard coal
• Zero environmental pollution or violation events identified
• Achieved 100% rectification rate of 13,828 accident hazards

Social Achievements

• Launched rural gas penetration program benefiting 1.53 million households
• Provided 12,839 hours of safety training for 18,378 employees
• Zero occupational disease and zero work-related fatality
• Donated RMB 10 million for COVID-19 relief efforts

Governance Achievements

• Improved corporate governance, including convening general meetings, board meetings, and committee meetings
• Implemented anti-corruption training for directors, management, and employees
• 78% of suppliers obtained ISO 9001, ISO 18001, and ISO 14001 certifications

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on economic development and social activities
• Ensuring stable gas supply during peak seasons and emergencies
• Managing risks in various business operations

Mitigation Strategies

• Implemented work and production resumption plans
• Developed emergency plans for gas supply disruptions
• Revised Risk Management Manual and implemented a supervision-and-audit joint-action mechanism

Supply Chain Management

Supplier Audits: Evaluated over 100 suppliers; 78% obtained three ISO certifications.

Responsible Procurement

• Material Management Policy, Bidding Management Measures, Supplier Examination and Appraisal Form

Climate-Related Risks & Opportunities

Opportunities

• Providing clean energy solutions to high-energy consumption and high-polluting enterprises

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide

Environmental Metrics

ESG Focus Areas

• Safety production
• Eco-friendly operation
• People-oriented management
• Responsible governance
• Win-win business
• Community building
• Climate Change

Environmental Achievements

• Recovered 3,599,041 m3 of natural gas
• Sales of natural gas of 2.755 billion m3 (equivalent to replacing 4.59 million tonnes of standard coal)
• Built 6,741 kilometers of medium-pressure pipelines outside villages and 40,000 kilometers inside villages
• Zero impact on basic farmland after long-haul pipeline project completion

Social Achievements

• Growth rate of total staff: 19.58%
• Percentage of female employees: 36.77%
• Total training hours: 166,792 hours (average 47.64 hours per employee)
• Zero work-related fatalities
• RMB 5 million donation to Henan Charity Federation
• RMB 4.8 million spent on gas discounts and necessities for single mothers and infants
• RMB 8 million for flood control and disaster relief

Governance Achievements

• Established a three-level ESG management structure (governance, management, execution)
• Convened two general meetings, six Board of Directors meetings, and meetings of other committees
• 50% of Board of Directors were female directors
• No incidents of condemnation or violation from HKEX or CSRC
• Implemented the new Audit Inspection and Management System of Tian Lun Group
• Organized integrity training for over 300 employees
• Accepted or transferred 22 complaints, investigated 12 cases, punished 44 people, and recovered RMB 134,094 in economic losses

Climate Goals & Targets

Environmental Challenges

• Resurgence of COVID-19
• Extreme weather caused by climate change
• National “dual carbon” goals increasing business costs and compliance costs
• Investment failure in energy-saving and emission-reducing technologies
• Reduced demand for natural gas due to low-carbon energy preferences
• Extreme weather impacting natural gas demand
• Increased stakeholder attention to climate change
• Extreme weather damaging gas supply pipelines and stations
• Long-term climate change impacting coastal business

Mitigation Strategies

• Active engagement in external cooperation and business transformation
• Formulating and adjusting greenhouse gas control strategies
• Cooperation with external institutions to promote energy-saving technologies
• Expanding low-carbon energy business
• Communicating with meteorological department to adjust gas source purchases
• Developing integrated energy business
• Committing to low-carbon transition and setting emission reduction targets
• Improving Emergency Management Plan and repairing damaged facilities
• Developing emergency plans for gas supply during floods
• Regularly monitoring sea-level rise

Supply Chain Management

Supplier Audits: 317 suppliers; 277 (87%) with ISO 9001, 14001, and 45001 certifications

Responsible Procurement

• Strict standards for supplier access
• Supplier evaluation before and after admission
• ISO certifications as compulsory/bonus criteria

Climate-Related Risks & Opportunities

Physical Risks

• Typhoon, extreme rainfall, flood damaging gas supply pipelines and stations
• Extremely cold weather leading to tight natural gas supply
• Long-term sea-level rise impacting coastal business

Transition Risks

• Energy structure shift to non-fossil energy increasing business costs
• Stricter carbon emission requirements
• Reduced demand for natural gas due to low-carbon energy preferences

Opportunities

• Developing integrated energy business
• Promoting low-carbon energy solutions

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide

Certifications: ISO 9001, ISO 14001, ISO 45001

UN Sustainable Development Goals

• SDG 7 (Affordable and Clean Energy)
• SDG 8 (Decent Work and Economic Growth)
• SDG 9 (Industry, Innovation and Infrastructure)
• SDG 11 (Sustainable Cities and Communities)
• SDG 13 (Climate Action)

The report details how initiatives contribute to these goals through various programs and actions.

Awards & Recognition

• Best Infrastructure and Utilities Stock Company (5th Golden Hong Kong Stock Awards)
• China Best Employer Award 2020
• Leader of the Year Award of Henan Private Enterprises with Social Responsibility 2020
• Individual Star for Most Caring Donation (Henan Charity General Federation)

Environmental Metrics

ESG Focus Areas

• Robust Governance
• Green Development
• Value Creation
• Responsible Operation
• People-Oriented
• Collaboration to Success

Environmental Achievements

• Continuous decline in total greenhouse gas emissions
• Water-saving in production and operation processes amounting to 80.365 tons
• Developed environmental management plans and measures
• Promoted the use of electric vehicles and natural gas vehicles to reduce emissions
• Actively laid out distributed photovoltaic business

Social Achievements

• Value-added revenue of 370 million yuan from services tailored to meet individual user needs, an increase of 12%
• Implemented safety device upgrades for up to 678,000 households
• Conducted various types of training 2,373 times, with a total of 198,618 training participants, totaling 74.9 thousand training hours
• Organized various cultural and sports activities

Governance Achievements

• Held the annual shareholders' meeting, where amendments to the company's organizational charter and detailed rules were passed
• Improved the compliance risk management system
• Disclosed 52 announcements and 1 shareholders' circular, and conducted nearly 100 communications with investors and analysts via teleconferences
• Established a whistleblower protection system and achieved full coverage of compliance review, audit supervision, and anti-corruption supervision policies

Climate Goals & Targets

Environmental Challenges

• Increased operational and low-carbon investment costs due to insufficient carbon quotas
• Increased R&D costs and slower low-carbon transformation due to technology investment failures
• Reduced demand for traditional natural gas affecting revenue due to market shifts
• Damage to gas supply pipelines and stations affecting supply stability due to extreme weather
• Increased energy consumption and reduced operational efficiency due to rising temperatures

Mitigation Strategies

• Actively engaging in external collaborations to develop comprehensive energy services
• Monitoring carbon trading policies and adjusting greenhouse gas control strategies
• Focusing on low-carbon technologies and accelerating renewable energy deployment
• Improving the "Emergency Management Plan" and maintaining gas supply stability
• Regularly monitoring sea level rise and planning market development accordingly
• Improving supporting equipment to ensure production and operational safety during high-temperature weather

Supply Chain Management

Supplier Audits: 100% coverage for centralized procurement suppliers

Responsible Procurement

• Integrity in operations
• Certification requirements (ISO18001, ISO14001, ISO9001)
• Compliance with national laws and respect for employee rights
• Environmental regulations and initiatives to reduce environmental impact

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather (typhoons, heavy rainfall, floods)
• Extreme cold weather
• Rising sea levels

Transition Risks

• Increased operational and low-carbon investment costs due to carbon trading
• Market shifts towards lower-carbon energy products

Opportunities

• Development of energy-efficient products
• Deployment of renewable energy and green processes

Reporting Standards

Frameworks Used: HKEX ESG Guide

Certifications: ISO14001, ISO18001, ISO9001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Tian Lun Gas leverages its business to support 13 UN SDGs

Sustainable Products & Innovation

• Distributed photovoltaic systems

Awards & Recognition

• ESG Excellence Enterprise Award
• 2022 Henan Social Responsibility Enterprise of the Year Award
• Best Utilities Company Gold Award
• Best Energy & Resources Company
• Best ESG Company Award
• ESG Pioneer Award