Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental, Social, and Governance (ESG)

Environmental Achievements

• Reduced carbon dioxide emissions by 220,000 tons compared to 2019
• Reduced nitrogen oxides emissions by 74.94% year-on-year
• Reduced sulfur oxides emissions by 65.21% year-on-year
• Reduced hazardous waste emissions by 21.4% year-on-year
• Reduced industrial freshwater consumption by 25.09% year-on-year
• Reduced energy consumption (industry) by 37.81% year-on-year

Social Achievements

• Ensured the supply of national disinfection and anti-pandemic materials during the COVID-19 pandemic
• Intensified targeted poverty alleviation
• Maintained stable employment throughout the year with no layoffs due to the pandemic
• Recruited 369 employees through social recruitment and 48 through campus recruitment
• Donated RMB 1,380,000 and anti-pandemic materials worth RMB 510,000 to support anti-pandemic campaigns

Governance Achievements

• Established a Sustainable Development Committee at the board level
• Formulated and issued six sustainable development policies
• Developed a quantitative ESG evaluation system
• Formulated 41 sustainability promotion action plans
• Achieved Grade A in the 2019-2020 evaluation of information disclosure of listed companies by the Shanghai Stock Exchange

Climate Goals & Targets

Environmental Challenges

• Risks and challenges brought by climate change
• COVID-19 pandemic and changes in the global situation
• Cost, technology, process, management, and competition from alternative energy in the chemical industry
• Climate change profoundly affecting economic development and the ecological environment
• China's improved green and low-carbon standards
• Need to intensify scientific research and strive to break through core and key technologies
• Tightening environmental protection policies

Mitigation Strategies

• Incorporated energy management improvement and climate change into operation and management
• Upgraded product structure, developed and improved green processes, increased innovation investment
• Promoted comprehensive resources recycling during the production process, reduced energy consumption, and carried out actions to cut carbon emission
• Implemented the “Five Star Plant” mechanism to ensure HSE system is closely in line with production and operations
• Strengthened inter-company HSE communication and mutual assistance
• Established a comprehensive risk management system
• Carried out internal management innovation
• Implemented credit risk big data system
• Established a whole process monitoring system for hazardous chemicals
• Implemented 163 improvement projects in the pollution prevention and control campaign
• Introduced advanced environmental management technologies

Supply Chain Management

Supplier Audits: 28 on-site audits of raw material suppliers

Responsible Procurement

• Supplier Code of Conduct
• Supplier Integrity Commitment
• Sustainability evaluation standards for suppliers
• Training on social responsibility management for suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards 2018 (Core option), UN Global Compact, ISO 26000:2010

Third-party Assurance: TÜV Rheinland (Guangdong) Ltd.

Sustainable Products & Innovation

• Green chemical products
• Lightweight and high-performance materials
• Lithium batteries and battery materials
• Reverse osmosis membranes
• Biodegradable material PHA
• High-performance polyolefin resin for wind turbine blades
• Cycloolefin copolymers for medical use

Awards & Recognition

• 4th place with Grade A among the Top 50 Best ESG Listed Companies in China Petrochemical Industry in 2020
• Award for Annual Outstanding Responsible Enterprise by Southern Weekly
• Best CSR Award in ESG Golden Responsibility Award by Sina Finance
• Role Model of COVID-19 Prevention and Control by China Petroleum and Chemical Industry Federation (CPCIF)
• Bronze Medal rating by EcoVadis