Ko Yo Chemical (Group) Limited 玖源化工 ( 集團 ) 有限公司
Climate Impact & Sustainability Data (2023)
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:272,258.40 tCO2e/year
Scope 1 Emissions:110,227.02 tCO2e/year
Scope 2 Emissions:159,261.08 tCO2e/year
Scope 3 Emissions:2,770.30 tCO2e/year
Renewable Energy Share:Not disclosed
Total Energy Consumption:814,389.81 MWh/year
Water Consumption:6,024,949 m3/year
Waste Generated:969.73 tons/year
Carbon Intensity:0.21 tonnes CO2e/tonne of chemical production
ESG Focus Areas
- Energy
- Emissions
- Effluents and Waste
- Environmental Protection Policies
- Occupational Health and Safety
- Employment
- Labour Standards
- Product/Service Quality
Environmental Achievements
- Guangan facility reduced GHG emissions by 13,700 tce annually through new equipment installation.
- Dazhou facility reduced GHG emissions by 11,500 tce in 2023 through equipment upgrades.
- Guangan facility achieved a 115.5% progress towards its 10-year GHG emission reduction target.
- Reduced water consumption by 1,080,562.00 m3 from 2021 to 2023 (216% of 10-year target).
Social Achievements
- Implemented various management practices to secure employees’ health and safety, including annual body checks and provision of personal protective equipment.
- Provided an average of 38.9 training hours per employee.
- All employees underwent training during the reporting year.
- No material non-compliance with health and safety laws and regulations.
Governance Achievements
- Established an audit committee and a remuneration committee.
- Adopted the model code for directors’ securities transactions.
- Consistently evaluates the environmental, social, and stakeholder impacts of its daily operations.
Climate Goals & Targets
Long-term Goals:
- For Guangan facility, reduce emission by 1,930 tCO2e annually (19,300 tCO2e over 10 years).
- For Dazhou facility, reduce emission by 5,100 tCO2e annually (51,000 tCO2e over 10 years).
Medium-term Goals:
- Not disclosed
Short-term Goals:
- Reduce total waste production by 3% compared to 2022 baseline by 2025.
Environmental Challenges
- Tight supply of natural gas and significant increase in its price.
- Downward oscillating product market sentiment.
- Power shortage from July to September 2023 in Dazhou due to drought.
- Increased hazardous waste production (43.8%) due to catalyst replacement.
- Increased non-hazardous waste production (63.7%) due to increased production volume and workforce.
Mitigation Strategies
- Continuous adjustment of the sales model, introducing a bidding mechanism.
- Technological transformation to improve anti-risk capability and reduce product consumption.
- Implemented electricity rationing and production limitations in Dazhou during power shortage.
- Strategic plan to increase production of value-added urea after power restoration.
- Engaging qualified waste management companies for recycling or proper treatment of hazardous and non-hazardous waste.
Supply Chain Management
Supplier Audits: Annual surveys and evaluations; site visits.
Responsible Procurement
- Prioritize energy-efficient appliances and low carbon-footprint products.
- Request suppliers’ commitment to comply with relevant environmental and social standards.
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events (drought, heatwaves)
- Electricity shortage
- Reduced water availability
Transition Risks
- Increased operation cost from substitution of existing equipment and services.
- Increased operation cost from increased GHG emission pricing.
- Reduced revenue from decreased demand for services.
Opportunities
- Development of energy-efficient products
Reporting Standards
Frameworks Used: Appendix C2 of the Listing Rules and Guidance set out by The Stock Exchange of Hong Kong Limited
Certifications: ISO 9001:2015, ISO 14001:2015, ISO 50001:2018
Third-party Assurance: Not disclosed
Sustainable Products & Innovation
- Not disclosed
Awards & Recognition
- Excellent Supplier in China’s Methanol Industry
- Integrity Environmental Protection Enterprise
- Advanced Enterprise in Efficient Fertilizers
- Advanced Grassroots Party Organization
- Dazhou Social Responsibility Brand Enterprise
- Innovation Award for Party Building Work
- Red Cross Dedication Medal
- Labour Day Award of Sichuan Province
- Labour Day Award of Dazhou High-tech Zone