Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety
• Health
• Environmental Protection
• Social Responsibility
• Green Development
• Clean and Efficient Coal Utilization
• Technological Innovation
• Corporate Governance

Environmental Achievements

• Seven coal mines were selected into the State Green Mine Catalogue.
• All coal chemical enterprises have achieved ultra-low emissions from their own coal-fired boilers, and all chemical enterprises in Inner Mongolia have completed the construction of concentrated salt and water salt projects, achieving “zero discharge ” of wastewater.
• All the Company’s utility coal-fired power plants have achieved ultra-low emission.
• The recovery rate of mining area of coal mine, integrated energy consumption of raw coal production, comprehensive utilisation rate of mining water, and integrated utilisation rate of coal gangue continued to keep ahead in the industry.

Social Achievements

• Implemented the spirit of consolidating and expanding the results of poverty alleviation and rural revitalisation, and invested cumulative poverty alleviation funds of RMB25.99 million.
• Maintained a good development trend in production safety with no general or more serious environmental emergencies.
• Achieved “zero infection ” of all employees during the pandemic.
• Fulfilled its social responsibilities and made social contribution of a total of RMB52.1 billion for the year.

Governance Achievements

• Promoted the implementation of the Three-year Action for the Reform of State-owned Enterprises in an all-round way, and basically realized the establishment of board of directors of subsidiaries and the contractual management of the tenure system for the management of enterprises.
• Strengthened the strategic transformation of flat, professional and regional management.
• Won the Best Capital Market Communication Award in the Fifth China IR Excellence Awards.
• The appraisal rating for annual information disclosure on the Shanghai Stock Exchange was A for consecutive years.

Climate Goals & Targets

Environmental Challenges

• Significant fluctuation of product prices
• Extreme weather in certain periods
• Shortage of railway capacity
• Complex coal mining conditions
• Increasing investments in the maintenance of large equipment, safety and environmental protection
• Decrease in the production volume of certain mines
• Price surge of bulk commodities
• Fluctuations in the exchange rate of a foreign currency against RMB

Mitigation Strategies

• Adjusted its marketing strategy in a flexible manner while continuously optimised its customer structure.
• Optimised warehouse deployment in different places and enhancing market radiation and product delivery capability.
• Improved the safety management and risk prevention system, vigorously promotes safe and efficient construction of coal mines and upgrades the level of automatic production.
• Strengthened the preliminary project work by expediting relevant procedures and ensuring rational investment scale and pace so as to control investment costs and avoid investment risks.
• Implemented the national decisions and deployment on the construction of ecological culture, and voluntarily put the concept of green development into practice.
• Strengthened daily supervision and checks to effectively prevent various types of ecological and environmental risks.
• Adopted new technologies, new working processes and new equipment in an active manner, optimising production layout, improving production efficiency and reducing material purchase costs and unit consumption level to prevent cost increases.
• Enhanced the effort to research and judge the trend of the global exchange market, effectively control and prevent the risks of foreign exchange rate by using various financial instruments.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Awards & Recognition

• Best Capital Market Communication Award in the Fifth China IR Excellence Awards

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Social contributions
• Corporate governance

Environmental Achievements

• Total carbon emissions of coal, power and chemical segments was approximately 46.17 million tons carbon dioxide equivalence, being 3.4% lower than that in 2021; with the carbon emission intensity of 4.81 tons per RMB10,000, being 7.7% lower than that in 2021.
• Comprehensive utilization rate of mine water of 96.2%
• Comprehensive utilization rate of coal gangue of 96.9%
• Chemical oxygen demand decreased by about 15% compared with last year.

Social Achievements

• Total social contribution through the payment of taxes, labour costs, and net profit amounted to RMB70.812 billion (including RMB28.239 billion in taxes and fees paid), and the social contribution value per share was RMB5.34, hitting a record high.
• RMB59.23 million invested in assistance funds for 31 assistance projects benefiting more than 80,000 people.
• Donated RMB24.57 million to fund local pandemic prevention and control efforts.

Governance Achievements

• No corruption litigation case in the Company in 2022.
• Improved major risk assessment and monitoring mechanism.
• Strengthened the pre-review of significant projects.

Climate Goals & Targets

Environmental Challenges

• Significant fluctuations in the energy and chemical product markets, and tense transportation in certain periods.
• Rising raw material prices.
• Impact of the COVID-19 pandemic on safety production and operations.

Mitigation Strategies

• Adjusted marketing strategy in a flexible manner, continuously optimised its customer structure, improved sales channels, and strengthened logistics management.
• Laid emphasis on energy conservation, cost reduction and efficiency enhancement.
• Overcame the impact of the pandemic through various measures, including improved pandemic emergency response plans and targeted measures to maintain normal operation order.

Supply Chain Management

Responsible Procurement

• Sunshine Procurement
• Market-based procurement
• Integration of social responsibility concepts into procurement process
• Prioritization of green, energy-saving, efficient, safe, reliable and sophisticated materials and equipment

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Opportunities

• Development of energy-efficient products and clean energy

Reporting Standards

Frameworks Used: GRI Standards, Self-Regulatory Guidelines for Listed Companies on the Shanghai Stock Exchange No. 3 – Industry Information Disclosure, Environmental, Social and Governance Reporting Guide (Stock Exchange of Hong Kong Limited), Guidelines on Preparation of Corporate Social Responsibility Report for Enterprises in China – Coal Mining and Processing Industry (CASS-CSR3.0)

Awards & Recognition

• Excellent Enterprises of Chinese Coal Industry for Issuing Social Responsibility Reports
• CCTV Finance 50 Index • Top 10 Companies in Social Responsibility (twice)
• Top 50 State-owned Enterprise in ESG
• Top 50 State-owned Enterprise in ESG Risk Management
• First ESG Golden Bull Award “Pioneering Enterprise”

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Social contributions
• Corporate governance

Environmental Achievements

• Comprehensive utilization rate of mine water of 97.9%
• Comprehensive utilization rate of coal gangue of 97.2%
• Reduced carbon dioxide emission per RMB10,000 production value by 1.5% compared to 2022
• Shaanxi Company’s steam and water recovery project expected to reduce carbon emissions by approximately 12,000 tonnes per year
• Pingshuo Group’s coupled heat pump project expected to reduce carbon emissions by 4,684 tonnes

Social Achievements

• Total social contribution of RMB71.877 billion (including RMB26.969 billion in taxes and administrative fees)
• Social contribution per share of RMB5.42
• Assisted 26 villages/towns with RMB32.67 million in assistance funds, benefiting more than 30,000 people
• 100% labor contract signing rate for employees
• Employee turnover rate of 1.1%

Governance Achievements

• Established an ESG management system covering three levels: decision-making, organization, and implementation
• Selected as the “Best Listed Company in Management of Investor Relations” by Crystal Ball Awards for Listed Companies
• Maintained A grade in the information disclosure evaluation of the Shanghai Stock Exchange for 14 consecutive years
• Zero enquiry from regulatory institutions regarding information disclosure

Climate Goals & Targets

Environmental Challenges

• Increasing occurrence of extreme weather events posing risks to production, transportation, and supply chain
• Higher requirements on corporate greenhouse gas emission management increasing administrative costs
• Increase in carbon transaction price increasing operating costs
• Government shift to “dual control” on carbon emission intensity and total volume increasing investment in energy conservation and emission reduction

Mitigation Strategies

• Improved extreme weather monitoring and warning, specific disaster emergency plans, regular emergency drills and training
• Close attention to changes in carbon transaction policies and regulations, active participation in national carbon transaction market, optimization of transaction strategies
• Adhering to the development idea of “efficiency enhancement and incremental transformation”, reducing carbon storage, controlling carbon increase, developing negative carbon
• Active application of technologies such as the integration and complement of coal chemical and renewable energy, the integration of “green hydrogen” and CO2 methanol production and CCUS

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Integrates concepts and requirements of performing social responsibilities into the whole procurement process
• Considers factors such as honesty and trustworthiness, human rights of employees, occupational health and safety in supplier selection

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (typhoon, storm, flood)
• Changes in rainfall volume and extreme climate change

Transition Risks

• Carbon quota and carbon transaction
• Government’s “dual control” on carbon emission

Opportunities

• Development of energy-efficient products and services
• Investment in new energy and alternative energy

Reporting Standards

Frameworks Used: GRI Standards, Self-Regulatory Guidelines for Listed Companies on the Shanghai Stock Exchange No. 1 – Regulated Operation, Environmental, Social and Governance Reporting Guide (issued by the Stock Exchange of Hong Kong Limited), Guidelines on Corporate Social Responsibility Report for Enterprises in China (CASS-ESG 5.0)

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 13: Climate Action

The report details how various initiatives contribute to these goals through poverty alleviation, energy efficiency improvements, job creation, technological innovation, and climate change mitigation efforts.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• CCTV Finance 50 Index • Top 10 Companies in Social Responsibility (twice)
• State-owned Enterprise ESG Pioneer Top 100 Index (three consecutive years)
• Hong Kong Stocks Golden Bull Award
• Top 50 State-owned Enterprise in ESG Golden Bull Award
• Top 100 Enterprise in ESG Golden Bull Award
• China Red Cross Universal Fraternity Medal
• National Advanced Unit for Integrity Performance in the Coal Industry
• Advanced Enterprise in Energy Conservation and Emission Reduction in China’s Coal Industry
• National Green Factory