Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic Contribution
• Environmental Protection
• Workplace Safety
• Community Training & Development

Environmental Achievements

• Significantly decreased the production cycle time in coating work thereby decreasing worker exposure to VOC. Significantly decreased the VOC emission level in paints used at Yangzijiang. Reduce the use of raw materials. Protect the environment. Reduce the Group’s emission of pollutants. Reduce the cost of handling hazardous waste.
• Major upgrades to our vessels, including to our 82,500 DWT bulk carrier which fulfills the Energy Efficiency Design Index (‘EEDI’) phase III requirement while majority of ships with similar specifications remains only EEDI phase II compliant.
• Co-designed an LNG fuel storage and supply system which will be equipped in our first order batch of dual-fuel 7,000TEU containerships. These dual- fuel engines and vessels are also in compliance with the IMO EEDI phase III requirements

Social Achievements

• Donated RMB3 million to the Jiangyin “Rural Revitalization sCommon Prosperity Fund”. Purchased various agricultural products from Xunyi County for a total sum of RMB623,100.
• Yuanlin Charity Foundation continues to make donations to various organizations, including RMB16 million to the Jiangyin rehabilitation hospital project.
• Project Chiba: a team of 17 representatives from Yangzijiang participated in an on-site training in Japan at joint venture partner Mitsui’s yard on design, safety management, quality control, automation, and production planning.
• Partnership with Colleges: signed a cooperation agreement with Jiangsu Maritime Institute, arranged for senior students from Jiangsu Ocean University and Nantong Polytechnic College to intern at the Group’s sites.
• Strong incentive reward program to encourage employees to come up with innovative methods of improving the Group’s productivity and efficiency.
• Many initiatives and volunteer work for our employees to assist the needy in the community.

Governance Achievements

• Proposed a corporate spin-off of its investment business, which will be listed separately on the mainboard of Singapore Exchange as Yangzijiang Financial Holding (‘YZJFH’).

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and its impact on global supply chains and operations.
• Rising raw material costs and the strengthening of RMB against USD impacting shipbuilding profitability.
• Lower volume of trading business in FY2021.
• 3 fatalities and 7 major accidents at our shipyards in 2021.

Mitigation Strategies

• Responded with resilience and agility, reporting strong operational and financial results for FY2021.
• Focus on new-build profitability and prioritized on building containerships and clean energy vessels.
• Completed the acquisition of remaining 20% stake in Jiangsu Yangzi Xinfu Shipbuilding Co, Ltd.
• Reactivated operations at Changbo yard.
• Actively reviewing its workplace safety measures and remain committed to providing a safe working environment for all workers.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Sustainable Products & Innovation

• 82,500 DWT bulk carrier (EEDI phase III)
• LNG dual-fuel 7,000TEU containerships

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• 27% of total outstanding orderbook is eco-friendly vessels, compared to 15% in 2021
• Initiation of GHG emission measurement for Scope 1 & Scope 2
• Collaboration with GTT for membrane containment system for LNG vessels
• Adoption of pure electric double propulsion system in a 9,150DWT Oil-chemical tanker
• Upgraded technology to meet EEDI phase 3 requirements and achieve 3% to 4% GHG emission reduction compared to conventional designs
• Optimising technology used in paints to mitigate harmful impacts on workers’ and crews’ health

Social Achievements

• Steadfast social contributions amidst pandemic: annual voluntary blood donation activity
• Runner Up Spot for Most Transparent Company Award, Industrial Category, at the SIAS 2022
• Appointment of the first female director, Ms Liu Hua, to the Board

Governance Achievements

• Establishment of ESG Committee under the Board
• Appointment of the first female director, Ms Liu Hua, to the Board

Climate Goals & Targets

Environmental Challenges

• COVID-19 outbreaks impacting operations and employee productivity
• Potential operational risks such as contract cancellations, customers' inability to obtain financing, construction delays, supply chain disruptions, cost overruns, and specification disputes
• Foreign exchange rate risks

Mitigation Strategies

• Accommodative arrangements for workers during lockdowns, collaboration with local government for employee support during quarantine, regular health monitoring and ART for employees
• Well-diversified customer base, prudent contract negotiation, proactive engagement with shipowners, flexible renegotiation of contracts, established supplier qualifying system, technology-powered workflow, proactive communication with customers, strict accountability for time and cost control, detailed specification determination, hedging currency exposure with forward contracts, paying back USD-denominated debts

Supply Chain Management

Responsible Procurement

• Established supplier qualifying system

Climate-Related Risks & Opportunities

Opportunities

• Growing demand for greener vessels

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 50001

Sustainable Products & Innovation

• Eco-friendly vessels
• LNG dual-fuel containerships
• Pure electric double propulsion system

Awards & Recognition

• Runner Up Spot for Most Transparent Company Award, Industrial Category, at the SIAS 2022

Environmental Metrics

ESG Focus Areas

• Climate Change
• Decarbonization
• Sustainable Supply Chain Management
• Corporate Governance
• Occupational Health and Safety
• Research and Development in Clean Technology
• Toxic Emissions and Waste Management
• Diversity, Equality and Care
• Labour Management Policy
• Business Ethics

Environmental Achievements

• All vessels delivered in 2023 met the latest IMO EEDI emission standards.
• New Yangzi Yard awarded municipal recognition as a Four-star Green Factory; Xinfu Yard and YAMIC Yard received provincial acknowledgement as Green Factories.
• Xinfu Yard is among the top 5% in the industry for carbon emission/CGT and pollutant emission/CGT; New Yangzi Yard achieves over 10% of its energy consumption from renewable sources.
• Secured major contract-wins for large size methanol dual-fuel containerships (Maersk and ONE), and fuel-efficient CABU III vessels with wind-assisted propulsion (KCC).

Social Achievements

• Three consecutive years with less than 1% injury rates in shipyards.
• Initiated technical and managerial skills training programs.
• Zero incidents of child labor and forced labor.
• Zero cases of discrimination.
• Launched an on-site nursery.
• Upgraded canteen with wider array of healthy food options and intelligent payment system.
• Contributed over RMB5 million towards urban development, sport events, and support for local communities.

Governance Achievements

• Established an ESG Committee.
• Incorporated additional sustainability principles into ESG disclosures (ISSB standards and UN SDGs).
• Internal review on the sustainability reporting process.
• One corruption case identified and resolved.

Climate Goals & Targets

Environmental Challenges

• Volatile macroeconomic environment.
• Volatile shipping market (BDI volatility).
• Securing government approvals for LNG terminal conversion.
• Managing risks associated with the use of critical materials.

Mitigation Strategies

• Selective on new orders, prioritizing large-batch or premium value orders.
• Ramping up technical capabilities to secure market share for next-generation products.
• Strategic chartering approach in shipping segment.
• Integration of environmental impact assessment into internal audit process.
• Engagement with a third-party agency for quarterly evaluation of toxic emissions levels.
• Replacing hazardous materials with safer, environmentally friendly alternatives.
• Use of clean energy and eco-friendly materials.

Supply Chain Management

Responsible Procurement

• Stringent bidding procedure for material procurement.
• Joint research with key suppliers to develop innovative materials.

Climate-Related Risks & Opportunities

Opportunities

• Penetration into alternative fuel-capable vessel sectors for business growth.

Reporting Standards

Frameworks Used: GRI Standards, SGX-ST Listing Rule 711A and 711B, ISSB, UN SDGs

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 50001, GB/T23331

Third-party Assurance: Internal

Sustainable Products & Innovation

• Methanol fuelled containerships, tankers, and bulk carriers
• Ammonia fuelled vessels and ammonia carriers
• Wind-assisted propulsion system
• Carbon capture and storage technology

Awards & Recognition

• Overall winner in the industrial conglomerates and goods sector + industrial goods, shipbuilding category at The Edge’s Billion Dollar Club event.
• Top for generating the highest returns to shareholders at The Edge’s Billion Dollar Club event.