Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Energy Saving
• Emission Reduction
• Employee Well-being
• Corporate Social Responsibility
• Governance

Environmental Achievements

• Completed a 3-Megawatt photovoltaic power generation project, saving 1,032.9 tons of standard coal annually and reducing SO2 and NOx emissions.
• Reduced integrated energy consumption by 2,773.419 tons of standard coal.
• Increased concentrated water recovery rate from 50% to 75%, saving over 10,000 tons of raw water.
• Recycled over 220,000 tons of water.

Social Achievements

• Organized 15 safety production trainings for all employees and 18 professional skills trainings.
• Provided 461 hours of training in total.
• Employee turnover rate was 4.3%.

Governance Achievements

• Established an energy management system.
• Implemented a performance appraisal program.
• Improved internal control systems.
• Revised the Articles of Association.

Climate Goals & Targets

Environmental Challenges

• Declined steam demand due to decreased main user traffic.
• Lower electricity consumption due to decreased user traffic and electricity price adjustments.
• Material procurement management risk (supply chain disruptions, price fluctuations).
• Equipment operation and maintenance risk (lack of training, emergencies).
• Performance appraisal management risk (unscientific indicators, biases).

Mitigation Strategies

• Developed various systems to regulate procurement procedures (materials procurement management measures, warehouse management measures, coal purchasing management system).
• Implemented information management for materials procurement.
• Reviewed and evaluated supplier qualifications.
• Implemented a coal supply agreement to stabilize coal supply.
• Carried out professional skills and safety trainings.
• Regularly checked fire prevention and anti-pollution equipment.
• Developed equipment emergency response process and conducted emergency drills.
• Conducted regular maintenance of fixed assets.
• Strictly implemented the performance appraisal management system.
• Defined performance goals and formulated performance appraisal indicators.

Supply Chain Management

Responsible Procurement

• Supplier review and procurement control process (qualification submission, assessment, open tendering).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Appendix 27 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

Certifications: ISO9001, GB/T23331-2012

Third-party Assurance: KPMG

Environmental Metrics

ESG Focus Areas

• Efficient Energy and Governance
• Green Operation
• Professional Team
• Social Responsibilities

Environmental Achievements

• Successfully completed the commercial operation of the power generation part of the gas distributed energy station project of Lingang Thermal Power, exceeding the installed capacity of traditional coal power.
• Average emission levels of sulfur dioxide, nitrogen oxides and flue gas were lower than the ultra-low emission standards.
• Implemented the Reward and Punishment Plan for Environmental Protection, resulting in lower emissions and environmental protection tax.

Social Achievements

• No lost days due to work injury during the year, and no work-related death in the past five years.
• Organized 48 safety production trainings and 57 professional skills trainings for employees.
• Women represented over 25.0% of the Group’s total workforce.

Governance Achievements

• Established an ESG Working Group to supervise ESG matters.
• Improved internal management system and internal control mechanisms.
• Complied with all code provisions as set out in the Corporate Governance Code.

Climate Goals & Targets

Environmental Challenges

• Policy risk from power system reform and changes in national energy policies.
• Material procurement management risk due to fluctuations in coal prices.
• Safety risk of workplace accidents.
• Climate change risks including extreme weather events and transition risks.

Mitigation Strategies

• Established a comprehensive risk prevention mechanism and actively transformed into an integrated energy supplier.
• Implemented fair and open procurement, joint coal procurement, and a steam price linked to fuel cost.
• Carried out safety trainings, emergency drills, and regular inspections.
• Developed climate change risk response plans, including flood prevention and gale weather plans, and implemented energy conservation measures.

Supply Chain Management

Supplier Audits: 65 suppliers; annual evaluation of qualified suppliers.

Responsible Procurement

• Public bidding procedures; supplier evaluation based on qualification, credit, production safety, and service quality; suppliers sign a letter of commitment to comply with social corporate responsibility and environmental protection requirements.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions, disrupted transportation and supply chain

Transition Risks

• Higher-performing machinery and cleaner energy technology

Opportunities

• Development of energy-efficient products and green or renewable energy technologies

Reporting Standards

Frameworks Used: Appendix 27 of the Listing Rules (renamed Appendix C2)

Certifications: ISO9001, ISO50001-2018

Third-party Assurance: SHINEWING (HK) CPA Limited