Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employee Care
• Supplier Management
• Product Responsibility
• Anti-corruption
• Community Engagement

Environmental Achievements

• Invested RMB210 million to update multiple systems and reduce emissions.
• Adopted zero-wastewater-discharge technology and imported advanced water treatment equipment.
• Reduced air pollutants by 30% to 75% through dust removal and desulphurisation technologies in thermal power plant.
• Reduced packaging material use; reused packaging materials shipped at production bases (17 tonnes of paper used in 2017).

Social Achievements

• Established a safety committee and safety departments in each production base to ensure employee safety.
• Provided various types of training to enhance employee capabilities and knowledge.
• Implemented 5S methodology at production bases to improve safety.
• Provided protective equipment and health check-ups for employees.
• Purchased insurance for all employees.
• No material non-compliance regarding employment or occupational health and safety noted.

Governance Achievements

• Established an audit committee responsible for formulating, reviewing, and monitoring corporate management policies and practices.
• Implemented a supplier management system with centralized procurement.
• Developed a system maintenance policy and rules on employee computer use to ensure information security.
• No cases of bribery, extortion, fraud, or money laundering found.

Climate Goals & Targets

Environmental Challenges

• Nitrogen oxide concentration in Wuhan Chenming slightly exceeded standard limit in February 2017.
• Nitrogen content of Wuhan Chenming wastewater exceeded standard limit.
• Increasing raw material costs.
• Potential environmental impacts from forestry development.

Mitigation Strategies

• Immediate stoppage of wastewater discharge until standards were met.
• Real-time monitoring system installed and connected to environmental protection bureau.
• Investment in thermal power plant at Shouguang production base to reduce reliance on local power grid.
• Use of waste incineration and biogas for power generation.
• Development of forestry in Guangdong, Hubei, and Guangxi to reduce reliance on imported raw materials.
• Recycling waste paper for production.
• Obtained FSC CoC certification for sustainable forestry practices.

Supply Chain Management

Responsible Procurement

• Supplier assessment covering quality management, business philosophy, environmental management, occupational health and safety, and service performance.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Comply and Explain of the Environmental, Social and Governance Guide, Appendix 27 issued by the Hong Kong Stock Exchange

Certifications: ISO 9001, ISO 14001, FSC CoC (FSC-C020261)

Awards & Recognition

• "Most Loving Charitable Enterprise" (six consecutive years)

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employee Care
• Supply Chain Management
• Product Responsibility
• Corporate Governance
• Community Engagement

Environmental Achievements

• Invested RMB 465 million in environmental renovation projects.
• Achieved zero discharge of wastewater.
• Thermal power plants accounted for approximately 73% of total power consumption.
• Shouguang Main Site generated over 7.55 million kWh of electricity using garbage incinerators.
• Upgraded dust removal and desulphurisation systems to meet ultra-low emission standards.
• Implemented energy conservation measures (e.g., energy-saving reminders, public transport encouragement).
• Phased out traditional lighting systems and replaced them with energy-efficient options.
• Recycled waste paper, sludge, and coal ash for reuse.
• Implemented waste classification system in Shanghai office.
• Jiangxi Chenming Paper recycled waste paper pulp and waste wood chips.

Social Achievements

• Established a well-established training and learning program for employees.
• Offered a talent selection scheme to reward diligent employees.
• Made contributions to five major social insurance schemes and housing provident fund for employees.
• Provided employees with statutory holidays and personal/family-related leaves.
• Held various social activities and sports events for employees.
• Implemented the 5S methodology to ensure a safe working environment.
• Provided employees with personal protective equipment (PPE).
• Provided physical examinations for employees.
• Conducted routine safety inspections and hazard detection.
• Provided safety training for all new employees.
• Carried out campus recruitment to provide internship and employment opportunities.

Governance Achievements

• Established an audit committee to formulate, review, and supervise business management policies.
• Set up an effective internal monitoring system to enhance internal management.
• Formulated anti-corruption policies and rules for high-risk departments.
• Conducted annual audits and visits to subsidiaries.
• Published tendering documents on the company website to enhance transparency.
• Provided anti-corruption training for employees.

Climate Goals & Targets

Environmental Challenges

• Shortage of raw material supply.
• Tightening national environmental legislation, emission caps, and waste management.
• Air pollution problems caused by thermal power plants.
• Odour emissions from the papermaking process.
• Rising raw material prices and costs.
• Unstable factors affecting finished product quality.
• Data leakage concerns in automated production.

Mitigation Strategies

• Self-sustained raw material supply through own forests.
• Investment in environmental protection projects and technology upgrades.
• Exploration of more energy generation modes (e.g., renewable energy).
• Upgrading dust removal and desulphurisation systems.
• Implementation of odour treatment plants and closed management systems.
• Development of a circular development concept with forestry-pulp-paper integration.
• Strict quality control measures and product recall procedures.
• Formulated system maintenance policy and strict rules governing computer use.

Supply Chain Management

Responsible Procurement

• Standard tendering process
• Supplier management and evaluation systems
• Preference for suppliers with safety, responsibility, and sustainability commitments.
• Random inspection of supplier product samples.
• Requirement for relevant permits and certificates from suppliers.
• Annual supplier evaluation exercises.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Environmental, Social and Governance Reporting Guide (HKEx)

Certifications: ISO 9001, ISO 14001, FSC Chain of Custody (CoC)

Awards & Recognition

• 2019 Environmental Responsible Enterprises
• Eco-environmentally Friendly Enterprises in China
• Top 10 Light Industry Enterprises in China
• Most Caring Charity Enterprise (8 consecutive years)
• Outstanding Technological Innovations in Shandong
• Outstanding Innovation Second Class Honours in Shandong

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Maximum daily power generation from biogas recovery reached 50,000 kilowatt-hours.
• Forest area under sustainable certification reaches as high as 96%.
• Wastewater treatment plant achieved 100% wastewater treatment rate and discharge compliance rate.
• Reduced flue gases emitted from self-owned power plants to approximately 52.2% of the national emissions standards.
• Annual water resource recycling rate reached 92%
• Saved 334,000 tons of fresh water annually

Social Achievements

• Social insurance coverage for company employees is 100%.
• Annual medical examination coverage for employees working in occupational hazard environments is 100%.
• Average training hours per employee is 96, with a 100% training participation rate.
• Customer satisfaction rate reached 85.76% in 2023

Governance Achievements

• Maintain a 100% response rate on Hudongyi.
• Achieve a 100% resolution rate for compliance-related complaints.
• Ensure a 100% answer rate for investor hotline calls.

Climate Goals & Targets

Environmental Challenges

• Supply-demand imbalances affected pricing and sales volumes, posing significant challenges for the paper industry.
• High production costs in the mid-stage effluent due to low temperatures and high influent water indicators (Jilin Chenming).

Mitigation Strategies

• Prioritizing sustainable development and intensifying ESG management and practices.
• Implementing cost reduction measures in mid-stage effluent treatment (Jilin Chenming), including rigorous control of discharge volume, strengthening control over workshop wastewater indicators, and adjusting the dosage of aluminum coagulant.

Supply Chain Management

Supplier Audits: 12 times

Responsible Procurement

• Centralized procurement, source procurement, and transparency
• Supplier classification management
• Framework agreements, consignment arrangements

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, HKEX Disclosure Guidelines, SASB

Certifications: ISO 14001, ISO 50001, ISO 45001, FSC-COC

Awards & Recognition

• Green Leading Enterprise
• Top 10 Governance Models of Lu Stock Company
• Member Unit of Rural Revitalization Development Alliance
• 2023 Excellent Case of Rural Revitalization Industry Assistance
• National Intellectual Property Advantage Enterprise