Climate Change Data

China Hanking Holdings Limited

Climate Impact & Sustainability Data (2021, 2022)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:1,191,873.43 tCO2e/year
Scope 1 Emissions:-3,067.74 tCO2e/year
Scope 2 Emissions:227,067.76 tCO2e/year
Scope 3 Emissions:37.12 tCO2e/year
Renewable Energy Share:Not disclosed
Total Energy Consumption:199,840,545.22 kWh/year
Water Consumption:1,441,186.00 m3/year
Waste Generated:2,116,000 tons/year (approx.)
Carbon Intensity:1.9447 metric tons CO2e per ton of high-purity iron in 2021

ESG Focus Areas

  • Environmental Protection
  • Employment and Labour Practices
  • Operating Practices
  • Community Engagement
  • Corporate Governance

Environmental Achievements

  • Reduced GHG emissions by 23.1% year-on-year
  • Achieved zero fatality, zero casualty, zero environmental pollution, zero occupational morbidity rate, and zero fire for five consecutive years
  • Reclaimed 371.97 mu of forest land
  • Planted 258,773 trees, reducing GHG emissions by 5,951.78 metric tons CO2e
  • Maogong Mine and Aoniu Mine recognized as national-level green mines

Social Achievements

  • Achieved zero death, zero serious injury accident, zero incidence of occupational disease, zero fire and zero environmental pollution for five consecutive years
  • Donated RMB 2.032 million for poverty alleviation, education promotion, pandemic prevention and disaster relief
  • 1,256 employees received occupational disease checkups
  • 1,606 employees received safety education
  • Aoniu Mining awarded “AAA-level Harmonious Enterprise of Labour Model Relations in Liaoning Province”

Governance Achievements

  • Full compliance with code provisions of the Corporate Governance Code (except for code provision C.2.1), and compliance with most recommended best practices
  • Established a multi-level health, safety, environmental protection and community organization
  • Implemented auditing and whistle-blowing system

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Achieve ultra-low emission target by 2025

Environmental Challenges

  • COVID-19 pandemic impact on business travel and mass gatherings
  • Potential safety hazards from underground goaf in long-term mining
Mitigation Strategies
  • Encouraged substitution of business travel with conference calls
  • Used tailings sand from mine processing to fill underground mined-out areas
  • Implemented various preventive measures for COVID-19, including telecommuting and on-site office management

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Regular assessment of environmental and social risks in supply chain
  • Materials procurement management system
  • Bidding, price enquiry/comparison, and sentinel procurement

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather (e.g., rainstorm, blizzard)
Transition Risks
  • Market shifts
Opportunities
  • Development of energy-efficient products and becoming a new energy material supplier

Reporting Standards

Frameworks Used: GRI Standards 2016

Certifications: ISO9000 (High-purity Iron Business)

Third-party Assurance: Deloitte Touche Tohmatsu (financial data only)

UN Sustainable Development Goals

  • Goal 7 (Affordable and clean energy)
  • Goal 8 (Decent work and economic growth)
  • Goal 9 (Industry, innovation, and infrastructure)
  • Goal 12 (Responsible consumption and production)
  • Goal 13 (Climate action)

Initiatives contribute to these goals through various actions such as producing high-purity iron for clean energy, promoting sustainable resource management, investing in technological innovation, and reducing GHG emissions.

Sustainable Products & Innovation

  • High-purity iron for wind power and ocean engineering

Awards & Recognition

  • AAA-level Harmonious Enterprise of Labour Model Relations in Liaoning Province (Aoniu Mining)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:1,319,780 tCO2e/year
Scope 1 Emissions:1,191,926 tCO2e/year
Scope 2 Emissions:127,841 tCO2e/year
Scope 3 Emissions:13 tCO2e/year
Water Consumption:1,192,479 m3/year

ESG Focus Areas

  • Environmental Protection
  • Health and Safety
  • Labour Standards
  • Supply Chain Management
  • Community Engagement
  • Corporate Governance
  • Scientific and Technological Innovation

Environmental Achievements

  • Achieved zero fatality, zero casualty, zero occupational morbidity rate, zero environmental pollution and zero fire for six consecutive years.
  • Planted 94,086 new trees, resulting in an equivalent emission reduction of 2,164 tCO2e.
  • Total GHG emissions: 1,319,780 tCO2e

Social Achievements

  • Total number of employees: 1,760
  • 100% safety education training rate for employees
  • Total donations: RMB 1 million
  • Aoniu Mining was awarded the first “Employer of the Year” title in the talent market selection of Fushun City.

Governance Achievements

  • Successive revisions of the Terms of Reference and Operating Model of the Remuneration Committee, the Board Diversity Policy, and the Whistle-blowing Policy.
  • Full compliance with the “comply or explain” provisions set out in the ESG Reporting Guide.
  • China Hanking won the “Best Information Disclosure Award”.

Climate Goals & Targets

Environmental Challenges

  • Increase in total GHG emissions.
  • Stricter environmental policies and regulations leading to increased compliance costs.
  • Potential impact of extreme weather on business operations.
Mitigation Strategies
  • Optimizing processes to improve energy efficiency.
  • Energy transformation to increase the proportion of renewable energy.
  • Implementing emergency plans to cope with extreme weather.
  • Formulating environmental management systems and upgrading environmental protection equipment.
  • Adopting smart management and improving production processes to reduce energy consumption.

Supply Chain Management

Supplier Audits: 418 suppliers, all from China. Regular assessment of environmental and social risks.

Responsible Procurement
  • Regular assessment of environmental and social risks in the supply chain.
  • Priority given to suppliers meeting environmental protection requirements.
  • Collection of supplier qualification data and checks through online credit information system.

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events impacting production and transportation.
Transition Risks
  • Stricter environmental policies and regulations increasing compliance costs.
Opportunities
  • Transformation into a high-quality raw material supplier for the clean energy industry.

Reporting Standards

Frameworks Used: GRI Standards 2021, Appendix 27 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

Certifications: ISO 14001

Sustainable Products & Innovation

  • High-purity iron products for wind power, nuclear power, and marine engineering.

Awards & Recognition

  • Best Information Disclosure Award
  • Best Energy and Resources Company
  • Employer of the Year