Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced energy consumption per unit of rubber chemical produced
• Significantly increased investment in environmental protection compared to 2016
• Implemented a centralized heating system reducing individual boiler use and emissions
• Achieved wastewater discharge within regulatory limits
• Achieved toxic gas emission within regulatory limits
• Recycled over 99.5% of sulfur

Social Achievements

• No incidents of discrimination
• Competitive remuneration and benefits above market rate
• Low staff turnover (less than 5%)
• Comprehensive employee training programs
• No major safety-related incidents
• Donated RMB 5.08 million to public welfare and social responsibility initiatives

Governance Achievements

• Established a Sustainability Committee
• Conducted code of conduct training for management
• Enhanced policies and procedures to prevent anti-competitive behaviors

Climate Goals & Targets

Environmental Challenges

• High energy consumption due to production processes
• Managing wastewater and toxic gas emissions
• Maintaining high safety standards in a hazardous materials environment

Mitigation Strategies

• Implemented energy-saving measures and monitoring systems
• Invested in advanced pollution control facilities, water recycling, and waste treatment systems
• Implemented comprehensive safety measures, training programs, and emergency response plans

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Core

Certifications: GB/T24001-2004/ISO14001:2004 (Environmental Management System), GB/T19001 – 2008/ISO9001:2008 (Quality Management System), GB/T28001/OHSAS18001 (Occupational Health and Safety Management System)

Awards & Recognition

• 2017 China’s top 500 oil and chemical companies
• 2017 China rubber products industry quality supplier
• 2017 Top 100 Chinese Specialty Chemicals Manufacturers
• 2017 Shandong Rubber Industry Top Ten Enterprises
• 2017 Shandong Petroleum and Chemical Industry Top 100 Enterprises
• Shandong Province rubber industry top 50 enterprise (2015 - 2016)
• Shandong Province, Safe Production, Basic-level Basic Work Advanced Enterprise
• 2016 Shandong enterprise public welfare star award
• 2016 fire safety model unit (Heze City)
• 2016 Heze City patent technology first prize
• Heze City 2016 annual donation model unit
• Heze City water-saving model unit

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Anti-corruption
• Energy
• Water
• Emissions
• Environmental Compliance
• Employment, Diversity and Equal Opportunity
• Training and Education
• Occupational Health and Safety
• Local Communities
• Enterprise Risk Management
• Fair Operating Practice

Environmental Achievements

• No major environmental and safety accidents in 2019
• Overall efficiency of waste treatment further improved
• Investment in environmental protection in 2019 was RMB 65.08 million higher than in 2018
• Steam and electricity unit consumption decreased by 7.69% and 9.63% respectively
• Unit water consumption in 2019 is 11.66 cubic meters, which is 0.91 cubic meters lower than the 2018 unit water consumption of 12.57 cubic meters
• Recycling volume of sulfur in 2019 is 12,262 tonnes, and recycling rate is as high as 99.5%
• Toxic gas emissions are within the government’s allowed range

Social Achievements

• No incidents of discrimination during the reporting period
• Staff turnover is low with less than 5% of the total headcount per annum
• 43% of our staff has been working with our Group for more than 10 years
• Total training hours amounted to 2,583 hours in 2019
• No major safety-related incident took place in 2019
• Donated RMB 8.10 million to public welfare and social responsibility

Governance Achievements

• No evidence to substantiate allegations of corruption
• Code of conduct training for management team
• Conflict of interest declaration from management team

Climate Goals & Targets

Environmental Challenges

• Slowing down of global economies
• Decline of China’s new car sales
• Intensifying competition
• Immense pressure on selling price resulting in narrower gross profit margin
• Stringent environmental protection regulations and inspections

Mitigation Strategies

• Investments in research and development
• Emphasis on environmental protection and safety production
• High standard of corporate governance
• Long-term sustainable growth goals
• Improved management methods and enhanced risk prevention capability
• Expansion plans in 2020
• Collaboration with research institutions to improve production processes
• Investment in upgrading facilities for a cleaner workplace
• Water-saving measures and increased water recycling
• Strengthened on-site chemical management
• Stringent approval process for chemical products
• Replacement of hazardous materials with less hazardous materials

Supply Chain Management

Responsible Procurement

• Fair and transparent procurement

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Certifications: GB/T24001-2004/ISO14001:2004 (EMS), GB/T24001-2016/ISO14001:2015 (EMS), GB/T19001-1994/ISO9001:1994 (QMS), GB/T19001-2016/ISO9001:2015 (QMS), GB/T28001/OHSAS18001 (OHSMS)

Awards & Recognition

• Shandong Province’s technological transformation award
• China Petroleum and Chemical Industry Federation’s Technology Run-up 2nd award
• Various awards listed on page 40-41

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Anti-corruption
• Energy
• Water
• Emissions
• Environmental Compliance
• Employment, Diversity and Equal Opportunity
• Training and Education
• Occupational Health and Safety
• Local Communities
• Enterprise Risk Management
• Fair Operating Practice

Environmental Achievements

• Reduced overall consumption of coal, electricity and steam in 2020 compared to 2019.
• Decreased unit energy consumption in 2020.
• Lower water consumption in 2020 due to water-saving measures and increased water recycling.
• Reduced wastewater discharge in 2020 compared to 2019.
• Increased recycled wastewater in 2020.
• Sulphur recycling rate of 99.5% in 2020.
• Toxic gas emissions met local standards in 2020.

Social Achievements

• No incidents of discrimination during the reporting period.
• Competitive remuneration and benefits provided to employees.
• Low staff turnover (less than 4.5% annually).
• 52% of staff have worked with the Group for more than 10 years.
• Total training hours provided were 5,113 hours in 2020.
• No major safety-related incidents in 2020.

Governance Achievements

• No incidents of corruption in 2020.
• Code of conduct training for management team in 2020.
• Strengthened on-site chemical management to minimize exposure to hazardous chemicals.

Climate Goals & Targets

Environmental Challenges

• Decline in demand for rubber chemicals due to the COVID-19 pandemic and lower raw material prices.
• Managing energy consumption effectively.
• Managing water consumption effectively.
• Managing wastewater discharge and toxic gas emissions to meet regulatory limits.
• Maintaining high safety standards in a hazardous materials environment.

Mitigation Strategies

• Implementation of energy-saving measures, including efficient production methods and cost control.
• Adoption of water-saving measures and increased water recycling.
• Investment in advanced pollution control facilities, water recycling projects, and solid waste disposal systems.
• Implementation of comprehensive safety and environmental measures, regular safety training, and emergency response plans.
• Acquisition of Heze Yongshun Environmental Protection Technology Co., Ltd. for hazardous waste disposal.
• Investment in a controlled landfill project for waste treatment.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Certifications: GB/T24001-2004/ISO14001:2004 (EMS), GB/T24001-2016/ISO14001:2015 (EMS), GB/T28001/OHSAS18001 (Occupational Health and Safety), GB/T19001-1994/ISO9001:1994 (Quality Management System), GB/T19001-2016/ISO9001:2015 (Quality Management System)

Awards & Recognition

• 2019 Green Development Model Enterprise
• 2020 Shandong Chemical Potential Top 50
• 2020 Heze Internet Safety Defensive Excellent Enterprise
• 2020 China Rubber Chemical Outstanding Supplier
• 2020 China Petroleum and Chemical Industry Speciality Manufacturing Enterprise Top 100 (ranked 29th)
• 2020 China Petroleum and Chemical Enterprise Top 500 Independent Production and Management Rank 140
• 2020 China Petroleum and Chemical Enterprise Top 500
• 2020 China Fine Chemical Top 100
• China Petroleum and Chemical Private Company Top 100 by Sales Revenue
• 2020 Shandong Petroleum and Chemical Enterprise Top 100 Innovation Index Top 40
• 2020 Wanda Tire Research and Innovation Award
• 2019 Top 20 Tax Payer (Weifang Sunsine)
• Health Promotion Enterprise (Weifang Sunsine)

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Anti-corruption
• Energy
• Water
• Emissions
• Environmental Compliance
• Employment, Diversity and Equal Opportunity
• Occupational Health and Safety
• Training and Education
• Local Communities
• Risk Management
• Fair Operating Practice

Environmental Achievements

• Completed and officially put into operation the 30,000 tonnes Insoluble Sulphur project.
• Completed construction of the 30,000 tonnes anti-oxidant TMQ project (pending government approval for trial production).
• Completed and put into operation phase I of the 50,000 tonnes controlled landfill project; construction of phase II commenced.
• Reduced unit water consumption by 1.19 cubic meters from 10.67 cubic meters in 2020 to 9.48 cubic meters in 2021.
• Achieved a sulphur recycling rate of 99.5% with a recycling volume of 12,979 tonnes.

Social Achievements

• No incidents of discrimination during the reporting period.
• Provided 5,173 hours of employee training.
• Maintained low staff turnover (less than 4.3%).
• Donated RMB 2.17 million to public welfare and social responsibility initiatives.

Governance Achievements

• Conducted code of conduct training for and obtained conflict of interest declarations from the management team.
• Strengthened control environment to eliminate anti-competitive and corruption opportunities.
• No major safety-related incidents.

Climate Goals & Targets

Environmental Challenges

• External risks: pandemic re-emergence, shrinking demand, volatile raw material prices, foreign exchange rate fluctuations.
• Internal risks: environmental compliance, maintaining a healthy and safe workforce and operating environment.

Mitigation Strategies

• Enhanced training curriculum in risk awareness and management, on-the-job training, and developed a system of checks.
• Implemented comprehensive safety and environmental friendly measures, subjected to periodic and random checks by authorities.
• Strengthened on-site chemical management, especially in high-risk areas.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards (Core option)

Certifications: GB/T24001-2016/ISO14001:2015 (EMS), GB/T45001-2020/ISO45001:2018 (OHSAS)

Awards & Recognition

• 2020 Outstanding Supplier (Wanli Tire)
• Strategic Cooperative Supplier (Double Coin Group)
• 2020 Shanxian Industrial Economic Development Gold Medal Award
• 2020 Top 50 in Shandong Rubber Industry
• 2021 Shandong High-end Brand Cultivation Enterprise
• 2021 China Rubber Chemical Outstanding Supplier
• 2001-2021 Excellent Enterprise of Rubber Auxiliary Professional Committee
• Level 2 Safety Production Standardization Enterprise
• 2021 China Petroleum and Chemical Enterprise Top 500
• 2021 China Chemical Industry Specialty Manufacturing Enterprise Top 100 (ranked 39th)
• 2021 Top 100 Chinese Petroleum and Chemical Private Enterprises
• Production Safety Enterprise in Shandong Province
• Provincial Safety Culture Demonstration Enterprises
• the province’s ‘safe production’ activities outstanding organization
• the national enterprise emergency response knowledge contest winners
• Heze City safety production emergency management demonstration site
• Heze City Ankang Cup competition winning unit
• Heze City best fire safety unit
• Municipal emergency management model unit

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Social
• Governance

Environmental Achievements

• Reduced unit consumption for steam and electricity due to technological upgrading and replacements of old energy-intensive equipment.
• Reduced unit water consumption by 0.05 cubic meters.
• Reduced unit wastewater discharge.
• Achieved a sulphur recycling rate of 99.5%
• Toxic gas emissions met local standards.

Social Achievements

• Provided 21,159 hours of employee training.
• Supported 59 needy students with education.
• No major safety-related incidents.
• No discrimination in employment.

Governance Achievements

• Conducted code of conduct training for management.
• Obtained conflict of interest declarations from management.
• Passed all customer audits.

Climate Goals & Targets

Environmental Challenges

• Increased precipitation and rising mean temperatures affecting raw material and product storage and transportation temperature control.
• Increased frequency and severity of extreme climate events causing potential damage to infrastructure and equipment.
• Changes in policy, such as carbon tax, leading to increased operating costs.
• Enhanced climate reporting requirements.

Mitigation Strategies

• Employee training on climate change impacts and storage/transportation procedures.
• Development of adaptive logistics plans.
• Regular monitoring of weather conditions and river levels.
• Detailed risk assessments and flood risk maps.
• Carbon footprint assessment and energy efficiency measures.
• Investment in renewable energy sources.
• Stakeholder engagement and communication on climate-related disclosures.
• Employee climate-related training.
• Internal audit and compliance checks.
• Alignment with TCFD recommendations.

Supply Chain Management

Supplier Audits: 22 customer audits conducted in FY2023

Responsible Procurement

• Fair and transparent procurement practices.

Climate-Related Risks & Opportunities

Physical Risks

• Increased precipitation and rising mean temperatures
• Increased frequency and severity of extreme weather events

Transition Risks

• Expansion of carbon pricing mechanism
• Enhanced climate reporting requirements

Opportunities

• Increased demand for development of new product and services
• Increased supply chain resilience and adaptability

Reporting Standards

Frameworks Used: GRI Standards 2021, TCFD Recommendations

Certifications: GB/T24001-2016/ISO14001:2015 (Environmental Management System), GB/T45001-2020/ISO45001:2018 (Occupational Health and Safety Management System), GB/T19001-2016/ISO9001:2015 (Quality Management System), IATF 16949 (Design and production of rubber chemicals)

Sustainable Products & Innovation

• High thermal stability insoluble sulphur
• MBT ammonium salt
• Rubber accelerator waste gas treatment and Claus Sulfur recovery comprehensive technology
• Antioxidant 6PPD hydrogenation in loop
• High-performance accelerator MBT continuous clean production

Awards & Recognition

• Manufacturing Industry Single Champion Demonstration Enterprise
• Special Contribution towards 2022 Economic Development
• Provincial Award in Youth Care
• Outstanding Supplier of the Year 2023
• Leshan Star-Rated Enterprise for Assisting the Disabled
• Top 50 Enterprises in Shandong Chemical Industry Development Potential Index for 2023
• Top 50 Enterprises in Comprehensive Strength of Shandong Rubber Industry for the Years 2021-2022
• Advanced Unit in Charity Donations for the Year 2022
• Star Enterprise for Charity Assistance to the Disabled
• Star of Charity Assistance to the Disabled
• Unit of Charitable Assistance to the Disabled
• 2023 China’s Top 500 Petroleum and Chemical Enterprises
• 2023 China’s Top 100 Petroleum and Chemical Private Enterprises (Sales Revenue)
• 2023 Petrochemical Enterprise Top 500 (Comprehensive)
• Top 500 Listed Companies in China’s Petroleum and Chemical Industry for 2023
• 2022 Specialist Chemical Enterprise Top 100
• 2023 China Top 100 Fine Chemical
• 2023 Most Transparent Company Award (Materials)