Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social Responsibility
• Governance

Environmental Achievements

• Total investment in environmental protection increased to RMB 109.5 million in 2019.
• Greenhouse gas emission intensity decreased to 271.53 tons of carbon dioxide/RMB 100 million.
• Hazardous waste intensity decreased to 2.8 tons/RMB 100 million.
• Three companies achieved national-level green factory status.

Social Achievements

• Employee satisfaction reached 97.8%.
• Employee turnover rate decreased to 2.1%.
• Charitable donations increased to RMB 11.77 million.
• Launched the A-share restricted stock incentive plan.

Governance Achievements

• Established and improved risk management and internal control system.
• Strengthened anti-corruption awareness among leading cadres and employees.
• Implemented a highly centralized and unified management of the audit integration management mode.

Climate Goals & Targets

Environmental Challenges

• Complex external situation affecting the Group's operations.
• Supply chain risks.
• Environmental risks associated with hazardous waste management.

Mitigation Strategies

• Accelerated innovation to replace old growth drivers with new ones.
• Improved the online management platform for suppliers.
• Implemented comprehensive audit and risk management systems.
• Formulated governance plans and implemented rectifications for environmental risks.

Supply Chain Management

Responsible Procurement

• Online management platform for suppliers.
• Centralized procurement process and management.
• Supplier Code of Conduct covering compliance with the law, human rights, environmental protection, and fair competition.
• Unannounced inspections of key suppliers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standard (partially), The Stock Exchange of Hong Kong Limited's Environmental, Social and Governance Reporting Guide, Guidelines for Preparing and Reviewing the Internal Control Report and Social Responsibility Report of Listed Companies of Shanghai Stock Exchange

Certifications: ISO 9001:2015 (all manufacturing enterprises), ISO 14001 (80% of subordinate production and operation departments), OHSAS18001 (80% of subordinate enterprises)

Sustainable Products & Innovation

• Green energy equipment
• Environmental protection equipment
• Lithium-ion battery production equipment

Awards & Recognition

• National-level green manufacturing demonstration enterprise (3 companies)
• Advanced enterprise for workplace safety standardization in China's machinery industry
• Demonstration units for safety culture building in Shanghai (2 companies)
• Second prize of the Award for Progress in Safety Technology of China Association of Work safety
• Outstanding Organizer Award of the 2019 Shenneng Cup Green Knowledge Contest

Environmental Metrics

ESG Focus Areas

• Smart City Development
• Sustainable Energy
• Community Development
• Environmental Protection
• Employee Well-being

Environmental Achievements

• Successfully connected Phase A of the fifth phase of the Mohammed bin Rashid Solar Park to the grid in Dubai, contributing to Dubai's Clean Energy Strategy 2050.
• Developed and implemented smart solutions to address ash accumulation on solar panels in the desert environment of the Mohammed bin Rashid Solar Park.
• Developed MED-TVC technology for low-cost thermal seawater desalination, achieving a significant breakthrough with a 200,000 t/d capacity project in Zhejiang Petrochemical Phase II.
• Shantou site of Shanghai Electric Wind Power Group awarded Typical Case of Energy High-quality Development for its Smart Energy Demonstration Project.

Social Achievements

• Shanghai Electric Pakistan Thar Power Generation Company held a philanthropic activity, sending gifts to over 200 local children.
• Collaboration with Tongji University to jointly set up the Engineering Technology Research Center for Smart Rail Transit.
• Customized “rural sewage treatment solutions” for Chongming Island, improving water operation efficiency through a smart water service platform.
• Completed China's first medium-capacity digital rail-guided tram (T1 Line) in the Lingang New Area.

Governance Achievements

• Four brands of Shanghai Electric awarded as Top 10 Industrial Brands of Shanghai 1921-2021.
• Shanghai Electric's brand value surged to over RMB 145 billion, continuing to lead the machinery category in China.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to equipment shortages and COVID-19 lockdowns in Xinjiang.
• Harsh winter conditions in Xinjiang hindering construction of wind power projects.
• Difficulties in deep hole processing of the EPR heavy reflector at Taishan.
• Ash accumulation on solar panels in the desert environment of the Mohammed bin Rashid Solar Park.

Mitigation Strategies

• Established the “Command Office of Xinjiang Wind Power Projects” and special working teams to overcome challenges.
• Implemented detailed task management and daily progress reporting to improve efficiency.
• Developed innovative solutions for deep hole processing, reducing cutting tool expenditures by 30%.
• Developed and implemented smart solutions to address ash accumulation on solar panels.

Supply Chain Management

Responsible Procurement

• Prioritization of Chinese electrical equipment manufacturers

Climate-Related Risks & Opportunities

Opportunities

• Development of sustainable energy solutions

UN Sustainable Development Goals

• SDG 6: Clean Water and Sanitation
• SDG 7: Affordable and Clean Energy
• SDG 9: Industry, Innovation and Infrastructure
• SDG 11: Sustainable Cities and Communities
• SDG 13: Climate Action

Shanghai Electric's initiatives contribute to these goals through sustainable energy projects, water management solutions, smart city development, and digital transformation.

Sustainable Products & Innovation

• MED-TVC technology for seawater desalination
• Smart water platform
• Digital rail-guided tram system

Awards & Recognition

• Shanghai Industry 1921-2021 My Favorite Brands
• Typical Case of Energy High-quality Development

Environmental Metrics

ESG Focus Areas

• Carbon peaking and carbon neutrality
• Green transition
• Digital transformation
• Sustainable development
• Corporate Social Responsibility (CSR)

Environmental Achievements

• Reduced CO2 emission by 39.74 million tons at Fangchenggang nuclear power plant compared to a coal-fired plant of the same capacity.
• Won the Credit 100 Jinlan Award for Best Carbon Peaking & Carbon Neutrality Practice.
• MSCI upgraded Shanghai Electric’s ESG rating from BBB to A for the second consecutive year.
• Yangpu Shenergy - Shanghai Electric Wind Power Zero-carbon Energy Equipment Industry Project commenced production.

Social Achievements

• Shanghai Electric’s Thar Project Awarded Outstanding Chinese Enterprise for Promotional Practices in Pakistan.
• Hunutlu thermal power plant ensured sufficient power supply for earthquake relief work in Türkiye.
• Shanghai Electric participated in the construction of 12 pumping stations for the Yangtze-to-Huaihe Water Diversion Project.
• Provided project management lessons to local employees in Pakistan.

Governance Achievements

• Released ESG reports for six consecutive years.
• Won the Best Case Award for the “2022 Industrial Sustainability in China: Exploration and Practice” white paper at the 2023 Forbes China Sustainable Development Summit.
• Made the list of “2022 Forbes China Top 50 Sustainable Development Industrial Enterprises”.

Climate Goals & Targets

Environmental Challenges

• Digital transformation challenges in manufacturing due to complex organizational structures and processes.
• High cost of carbon fiber in wind turbine blades.
• Lack of sufficient primary data and private land ownership issues in Pakistan.
• Poor local security, threats from terrorist attacks, and sporadic covid-19 resurgences in Pakistan.

Mitigation Strategies

• Shanghai Electric developed a digital transformation model focusing on key application scenarios.
• Exploring cost-effective solutions for carbon fiber application in wind turbine blades.
• Finding feasible paths with lowest cost and least impact on local lives in Pakistan.
• Staying on-site to solve problems and ensuring project completion despite challenges in Pakistan.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Credit 100 Jinlan Award for Best Carbon Peaking & Carbon Neutrality Practice
• Best Case Award for the “2022 Industrial Sustainability in China: Exploration and Practice” white paper
• “2022 Forbes China Top 50 Sustainable Development Industrial Enterprises”

Environmental Metrics

ESG Focus Areas

• Green development
• Energy transformation
• Corporate Social Responsibility (CSR)
• Women's Empowerment and Gender Equality

Environmental Achievements

• Reduced carbon emissions annually after completion of the 56 MW EPC photovoltaic project in Romania by 4,150 tons.
• Agricultural Waste Recycling Utilization Project in Chongming reduced CO2 emissions by 30,122 tons/year.
• Jinling Power Plant’s Renovation reduced the annual weighted standard coal consumption rate by 1.2 g/kWh.
• Zero-carbon “wind, solar, storage, charging, and hydrogen” demonstration project by Bright-H Technology.

Social Achievements

• Thar Coal Block-I Project won the CSR Award 2023 and Women's Empowerment and Gender Equality Recognition Award 2023.
• Shanghai Electric's Blue Ribbon volunteer team conducted various public welfare activities for autistic children.
• Two projects submitted by Shanghai Electric won the Shanghai "Silver Dove Award" 2023.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Power fluctuations and voltage instability when wind and solar power systems connect to the grid.

Mitigation Strategies

• Development and implementation of distributed synchronous condensers to adjust power factor and improve voltage quality.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Distributed synchronous condensers
• High-efficiency industrial drive systems
• Heat pump systems
• Green industrial plant designs
• Waste heat utilization for desalination
• Low-carbon rail transit solutions
• Green intelligent manufacturing lines
• High-precision CNC grinding machines
• Medical devices

Awards & Recognition

• CSR Award 2023
• Women's Empowerment and Gender Equality Recognition Award 2023
• Shanghai "Silver Dove Award" 2023