Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Product Liability
• Employee Benefits
• Anti-corruption

Environmental Achievements

• Built a sewage treatment system and a domestic water treatment system in 2017. Purchased equipment for noise reduction and dust removal in 2017. Implemented green office practices (double-sided printing, recycled paper, reduced energy consumption). Changed 30%-60% of light bulbs to LED bulbs in production facilities. Used variable-frequency conveyor belts and installed energy-saving equipment in coal mine power supply systems. Improved water and electricity intensity despite increased consumption.
• Treated domestic and industrial wastewater to meet national standards before discharge. Reclaimed and restored mining sites after completion of operations. Implemented pollution prevention and control measures.

Social Achievements

• Provided all employees with at least the local minimum wage and benefits. Implemented a six-part safety system at operating coal mines (electronic safety monitoring, wireless tracking, emergency exits, etc.). Conducted regular safety training sessions for employees. Arranged annual occupational health examinations, periodic job rotations, and annual leave for employees. Implemented a no forced labor and no child labor policy. Complied with PRC Labour Law and PRC Labour Contract Law.
• Offered training and development courses to employees. Supported various construction projects in local communities. Donated CNY1 million to Jin Qiao Village for road construction. Provided coal at a 50% discount (CNY1.5 million equivalent) to villagers in Ba Yi and Jin Qiao Villages. Donated coal to elderly in disadvantaged groups and sold coal at a discounted price to selected villages. Carried out cultural activities with local governments.

Governance Achievements

• Established an internal anti-fraud policy, codes of conduct, and procedures to prevent bribery, corruption, and fraud in January 2014. Implemented control mechanisms to reduce fraud (risk assessment, Audit Committee oversight, integrity training, reporting channels). Adopted a whistle-blowing policy. Complied with relevant PRC laws and regulations regarding anti-bribery and anti-corruption.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Preference given to suppliers with sustainability policies, certificates, management systems, and compliance with the Group’s supplier code of conduct.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Appendix 27 to the Rules Governing the Listing of Securities on 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

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Product Liability
• Employee Benefits
• Anti-corruption

Environmental Achievements

• Built a sewage treatment system and a domestic water treatment system in 2017. Purchased equipment for noise reduction and dust removal.
• Slightly improved overall air emissions due to enhanced vehicle efficiency.
• Blended raw coal, lignite, middling coal, and coal residue stone to meet customer demands, resulting in no major non-hazardous waste.

Social Achievements

• Provided all employees with at least the local minimum wage and benefits.
• Implemented a six-part safety system at operating coal mines, including electronic monitoring, wireless tracking, and emergency supplies.
• Organized 23 training programs across the Group in various aspects, including corporate culture, leadership, and safety.

Governance Achievements

• Established an internal anti-fraud policy, codes of conduct, and procedures to prevent bribery, corruption, and fraud in January 2014.
• Implemented control mechanisms to reduce fraud, including risk assessments, Audit Committee oversight, and employee training.
• Adopted a whistle-blowing policy.

Climate Goals & Targets

Environmental Challenges

• Increased Scope 1 and Scope 2 greenhouse gas emissions due to increased production.
• Potential risks associated with supply chain management and ensuring supplier compliance with ESG standards.

Mitigation Strategies

• Implemented green office practices and energy-saving measures in production facilities (LED lights, variable-frequency conveyor belts).
• Established an “Energy Saving and Waste Reduction Team” to promote resource conservation.
• Preference given to suppliers with sustainability policies, certificates, and management systems.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Preference given to suppliers with sustainability policies, certificates, and management systems; compliance with supplier code of conduct.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Appendix 27 to the Rules Governing the Listing of Securities on 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

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Product Liability
• Employee Benefits
• Anti-corruption

Environmental Achievements

• Reduced Scope 1 CO2 equivalent emissions from 3,392 tonnes to 2,619 tonnes
• Reduced Scope 2 CO2 equivalent emissions from 53,087 tonnes to 43,767 tonnes
• 90% of light bulbs changed to LED light bulbs for electricity saving

Social Achievements

• Established an ESG Committee
• Implemented a six-part safety system at operating coal mines
• 100% of employees participated in training programs

Governance Achievements

• Established an internal anti-fraud policy, codes of conduct and procedures to prevent all forms of bribery, corruption and fraud in January 2014
• Established a whistle-blowing policy

Climate Goals & Targets

Environmental Challenges

• Adverse and extreme weather brought by climate change may hinder the transportation and travelling of our employees commuting to the mines and offices. As a result, production loss may be incurred. In addition, the facilities and equipment at the mines may be damaged by climate and weather conditions.
• Temporary deterioration in coal quality caused by geological complexities of current mining faces

Mitigation Strategies

• Adopting more stringent flooding prevention measures and advance monitoring of weather for contingency plans
• More regular monitoring and maintenance works have been carried out for reducing the damage due to extreme weather
• More water resource for processing was needed to remove the rise of gangue in the raw coal (However, water used in coal mines was from river and fully recycled).

Supply Chain Management

Supplier Audits: 56 Tier 1 suppliers

Responsible Procurement

• Preference given to suppliers with sustainability values, certificates, management systems, and compliance with the Group’s supplier code of conduct

Climate-Related Risks & Opportunities

Physical Risks

• more frequent and intense heavy rainfall, flooding and typhoons

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Appendix 27 to the Rules Governing the Listing of Securities on 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

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Product Liability
• Employee Benefits
• Anti-corruption

Environmental Achievements

• Decreased air emissions (Nitrogen Oxides, Sulphur Oxides, Particulate Matter) due to reduced vehicle usage during the pandemic.
• Improved greenhouse gas emission intensity (Scope 1 and Scope 2) despite increased total emissions due to higher coal production.
• 90% of light bulbs changed to LED bulbs for energy saving.
• Implementation of green office practices (double-sided printing, recycled paper, reduced energy consumption).

Social Achievements

• Significant improvement in employee turnover rate (33% in 2021 to 10% in 2022).
• Improved number of lost days due to work injury (1200 days in 2021 to 720 days in 2022).
• 100% of employees participated in training programs in 2022.
• CNY 7 million in donations to various community projects and charitable causes in 2022.

Governance Achievements

• Establishment of an ESG Committee in 2021.
• Implementation of an internal anti-fraud policy, codes of conduct, and procedures to prevent bribery, corruption, and fraud.
• Establishment of a whistle-blowing policy.

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on mining activities due to adverse weather (heavy rainfall, flooding, typhoons).
• Potential production loss due to weather-related disruptions in employee commute and facility damage.

Mitigation Strategies

• Adoption of stricter flooding prevention measures.
• Advance weather monitoring for contingency planning.
• More regular monitoring and maintenance works to reduce damage from extreme weather.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Preference given to suppliers with sustainability policies, certificates, management systems, and compliance with the Group’s supplier code of conduct.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather (heavy rainfall, flooding, typhoons)

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Appendix 27 to the Rules Governing the Listing of Securities on 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

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Product Liability
• Employee Benefits
• Anti-corruption

Environmental Achievements

• Reduced air emissions (Nitrogen Oxides, Sulphur Oxides, Particulate Matter) in 2023 compared to 2022 due to reduced operations at some major mine sites.
• Reduced Scope 1 and Scope 2 greenhouse gas emissions in 2023 compared to 2022 due to temporary suspension of operations at certain mine sites.
• Converted around 90% of light bulbs to LED light bulbs for electricity saving purposes.
• Implemented groupwide energy saving measures to reduce vehicle and electricity use.

Social Achievements

• Significantly improved employee turnover rates in 2023 compared to 2022.
• Implemented a six-part safety system at operating coal mines.
• 100% of employees participated in training in 2023.
• Provided training programs in various aspects such as corporate culture, leadership, taxation, health and safety, and other technical skills.

Governance Achievements

• Established an ESG Committee in 2021.
• Established an internal anti-fraud policy, codes of conduct and procedures to prevent all forms of bribery, corruption and fraud in January 2014.
• Established a channel for real-name or anonymous reporting on fraudulent activities.

Climate Goals & Targets

Environmental Challenges

• Climate change may impact mining activities due to adverse weather (heavy rainfall, flooding, typhoons).
• Transition risks due to tightening environmental protection regulations.
• Adverse weather may hinder employee transportation and cause production loss and facility damage.
• One work-related fatality in 2023 due to an employee not following safety procedures.

Mitigation Strategies

• Adopting more stringent flooding prevention measures and advance weather monitoring for contingency plans.
• More regular monitoring and maintenance works to reduce damage from extreme weather.
• Thorough safety check, tightened safety measures and strengthened safety trainings to prevent similar incidents.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Preference given to suppliers with sustainability policies, certificates, management systems, and compliance with the Group’s supplier code of conduct.

Climate-Related Risks & Opportunities

Physical Risks

• Frequent extreme weather, flooding, typhoons

Transition Risks

• Tightening environmental protection regulations

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Appendix C2 to the Rules Governing the Listing of Securities on 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

• Not disclosed

Awards & Recognition

• Not disclosed