Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Safety and Quality
• Talent Development
• Social Activities
• Corporate Governance

Environmental Achievements

• Reduced approximately 3.7 million tons of sulfur dioxide emissions per year.
• Reduced approximately 160,000 tons of NOx emissions annually.
• Annual emission reduction of sulfur dioxide is 3.65 million tons and nitrogen oxides are 0.2 million tons in 2018.
• Historically reduced more than 28.54 million tons of sulfur dioxide emissions and more than 900,000 tons of NOx emissions.
• Independently developed the “ZFD Flue Gas Pollution Control Technology”.

Social Achievements

• Established the “Qualified Supplier Management Department”.
• Implemented 77 training programs in business management, professional technology and production skills, with a 92% completion rate.
• Donated HK$1 million to the Community Chest of Hong Kong.
• Organized public welfare activities in Sun Village, Beijing.

Governance Achievements

• Maintained a high level of corporate governance.
• Strictly complied with Appendix 14 to the Hong Kong Listing Rules.
• Strengthened internal control and risk prevention and management procedures.
• Established an email for whistle-blowing and lodging complaints.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Five-part supplier selection process
• Qualified Supplier Management Department

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Hong Kong Stock Exchange Environmental, Social and Governance Reporting Guide

Certifications: ISO9001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• ZFD Flue Gas Pollution Control Technology

Awards & Recognition

• China Quality Power Project Award
• National Quality Project Award
• Luban Prize of Chinese Construction Engineering
• National Important Environmental Protection Practical Technology Demonstration Project Award
• National Quality and Trustworthy Enterprise

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Carbon neutrality
• Sustainable development
• Ecological civilization construction

Environmental Achievements

• Successfully opened up the market in papermaking and pharmaceutical industries in water treatment.
• Successfully connected to the grid for power generation of the first CDQ waste heat generating unit (25MW).

Social Achievements

• Established independent labor union branches.
• Implemented a responsibility system for operational and management objectives, with a comprehensive appraisal system and an incentive mechanism.
• Complied with the Labour Law of PRC and the Labour Contract Law of PRC in all material respects, including making contributions to the Social Insurance Fund and Housing Provident Fund for its employees.

Governance Achievements

• Adopted the Corporate Governance Code (CG Code) as set out in Appendix 14 to the Listing Rules.
• Adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix 10 to the Listing Rules.

Climate Goals & Targets

Environmental Challenges

• Pressure of COVID-19 pandemic prevention and control.
• Complex and severe external environment.
• Shrinking demand, supply shock and weakening expectations in China's economic development.
• Pollution problems in key areas and industries.
• Intensified geopolitical and political conflicts resulting in a sharp rise in international commodity prices.
• Lower-than-expected market orders and falling operating indicators.
• Progress of some EPC projects were delayed due to the stringent requirements for the prevention and control of COVID-19 pandemic outbreak.
• Certain O&M and concession operation projects were closed due to various reasons.
• Power generation of certain O&M and concession operation projects in the thermal power industry decreased.

Mitigation Strategies

• Continuously drive the development of new business sectors and the transformation of its strategy.
• Promote and improve refined management work.
• Recruit high-caliber talents.
• Allocate internal resources according to the needs of business development.
• Formulate multi-level and multi-stage high incentive methods.
• Expand its business overseas.
• Seize market opportunities to further cover the entire industrial chain of the flue gas treatment industry and explore potential markets.
• Develop new markets in non-electrical industries.
• Develop environmental protection businesses such as industrial wastewater treatment and environmental restoration.
• Maintain adequate reserves, banking facilities and continuously monitoring forecast and actual cash flows.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: International Accounting Standard 34 (IAS 34)

Awards & Recognition

• 2021 Preferred Brand for Atmospheric Treatment and Environmental Protection Enterprises in the Iron and Steel Industry