Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced electricity consumption through energy-efficient appliances and conservation efforts.
• Improved water usage efficiency through various measures in canteens and offices.
• Implemented measures to mitigate emissions from business and construction vehicles.
• Improved hazardous waste handling procedures.

Social Achievements

• Launched various charitable and public welfare activities, including student financial assistance, poverty alleviation, and traffic safety initiatives.
• Maintained a low employee turnover rate of 0.97%.
• Provided various employee benefits and welfare programs.
• Organized employee training programs on safety, toll collection, and other relevant topics.

Governance Achievements

• Established a coordination group for clean party building and anti-corruption.
• Implemented a whistleblowing system.
• Improved integrity risk prevention and control system.
• Consistently complied with relevant laws and regulations.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacted traffic volume and toll income.
• Changes in macroeconomic environment affected demand for road transport.
• Diversified travel patterns and changes in road network impacted traffic flow.
• Management risks related to road maintenance and unforeseen events.

Mitigation Strategies

• Implemented pandemic prevention and control measures.
• Strengthened operational management and risk resistance capability.
• Actively communicated with government authorities and explored diversified development strategies.
• Analyzed macroeconomic trends and adjusted operations accordingly.
• Monitored road network construction and implemented marketing activities.
• Improved road maintenance management and strengthened safety measures.

Supply Chain Management

Responsible Procurement

• Open tendering, negotiation, and consultation for procurement projects.
• Specific requirements for safety, quality, and environmental protection in tendering documents.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Not disclosed

Social Achievements

• Launched employee well-being programs, including corporate annuity and supplementary medical insurance; achieved an employee turnover rate of 0.86%
• Carried out 6 times of school donation, 18 times of public welfare voluntary service activities, 6 times of learning from Lei Feng activities, 6 times of helping the elderly and poverty alleviation activities, 3 times of public welfare publicity, and 1 time of blood donation activities.

Governance Achievements

• Revised the Rules of Procedures of the Board and the Rules of Procedures of the Supervisory Committee; carried out self-inspection of special actions on the governance of listed companies; issued the appraisal measures for the Quality, Environment and Occupational Health and Safety Management System; added or revised a number of systems to improve the rules and regulations system; implemented anti-corruption policies and systems; conducted integrity education and anti-corruption training for 230 employees and 20 senior management personnel.

Climate Goals & Targets

Environmental Challenges

• Decreased toll income and traffic volume due to the severe pandemic situation in some regions of the PRC, implementation of pandemic prevention and control measures, and increasing oil prices.
• Potential risks from macroeconomic changes, diversified travel patterns, changes in road network, and management risks (e.g., road damage from natural disasters, traffic incidents).
• Climate change impacts on energy prices, green energy development, and extreme weather events.

Mitigation Strategies

• Actively expanding business beyond toll income, including engineering services and sales of industrial products.
• Strengthening operational management, improving management quality and efficiency, enhancing emergency handling abilities, and using intelligent platforms for road and network management.
• Strengthening communication with government authorities, capitalizing on resource advantages, exploring related industries and businesses, and implementing diversified development strategies.
• Analyzing macroeconomic changes, collecting data on economic development, and minimizing negative impacts on operations.
• Keeping abreast of road network planning, conducting specialized analysis, making reasonable predictions on traffic flow impacts, and using information technology for marketing and traffic attraction.
• Strengthening preventive road maintenance and repair, purchasing high-quality road-related assets, and establishing an optimized human resources system.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Open tendering, negotiation, and consultation; requirements for safety, quality, and environmental protection in tendering documents.

Climate-Related Risks & Opportunities

Physical Risks

• Floods, earthquakes, dense fog, heavy snow and ice

Transition Risks

• Changes in laws, regulations, or policies related to carbon emission reduction and green energy.

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards (GRI Chinese Version), Appendix 27 “Environmental, Social and Governance Reporting Guide” (the “ESG Reporting Guide”) issued by The Stock Exchange of Hong Kong Limited

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Pavement crack-resistant paste

Awards & Recognition

• Pingyin toll station and Liaocheng South toll station awarded “demonstration benchmark toll station”

Environmental Metrics

Environmental Achievements

• Successfully connected the Liaocheng Road Area Photovoltaic Project to the grid with a total installed capacity of 8.2MW.

Social Achievements

• Launched "Wisdom • Qilu Home Tour" employee engagement initiative.
• Successfully organised the Company Song Singing Competition and the Art Performance Celebrating Youth Day on May 4th.

Governance Achievements

• Moody’s annual tracking rating remained at a high level of Baa2.
• Three projects were selected for inclusion in the second class of technological innovation project plans in Shandong Province.

Climate Goals & Targets

Environmental Challenges

• Decrease in traffic volume on the Jihe Expressway due to half-width closure for construction of the R&E Project.
• Overall economic recovery in 2023 exhibited undulating progress and unforeseen challenges.

Mitigation Strategies

• Implemented "half-width closure for construction, half-width one-way traffic" model for Jihe Expressway R&E Project.
• Accelerated transformation of business model, industrial structure optimization, and shift of growth drivers.
• Strengthened investments, optimized capital utilization, and expanded asset base.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Floods, earthquakes, extreme weather

Transition Risks

• Changes in laws, regulations, or policies related to carbon emission reduction.