Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Employee development
• Road safety
• Community investment
• Anti-corruption
• Supply chain management

Environmental Achievements

• Reduced greenhouse gas emissions from fossil fuel combustion by an unspecified amount.
• Reduced greenhouse gas emissions from electricity use by an unspecified amount.
• Implemented heat regeneration technology during road maintenance to greatly reduce waste pitch.
• Achieved 68% electricity savings through energy-saving reconstruction of tunnel lamps on GNSR Expressway.
• Reduced water consumption for irrigation by 360 liters compared to the previous year at Tianjin Jinbao Expressway.
• Reduced milling roads by 23,261 m² and milling waste by about 4,187 m³ at Hubei Suiyuenan Expressway.

Social Achievements

• Implemented equal and non-discriminatory labor use policies.
• Provided competitive salary and welfare to employees.
• Carried out targeted training activities for employees at different levels.
• Maintained a 14.15% employee turnover rate.
• Had zero work-related fatalities and zero lost workdays due to occupational injuries in 2016.
• Donated approximately RMB 1,922,300 to charitable causes.
• Improved lighting at Guangxi Cangyu Expressway toll station to reduce accidents.

Governance Achievements

• Established a Discipline Inspection and Supervision Department to enhance anti-corruption practices.
• Implemented a three-level prevention and control system for decision-making.
• Developed and implemented various anti-corruption guidelines and measures.
• Had zero corruption lawsuits against the company or employees in 2016.
• Formulated the Procurement Management System of Yuexiu Transport Infrastructure Limited (Trial) to ensure effective procurement management.

Climate Goals & Targets

Environmental Challenges

• Noise pollution affecting nearby residents.
• Impediment of drainage in side ditches.
• Customer complaints regarding products and services (437 in 2016).

Mitigation Strategies

• Installed noise barriers along densely populated sections of Guangzhou Northern Second Ring Expressway.
• Worked with villagers to dredge side ditches and enhance sewage treatment systems at Hubei Suiyuenan Expressway.
• Improved product and service quality to address customer complaints.
• Implemented measures to speed up handling of customer complaints and improve after-sales services.

Supply Chain Management

Supplier Audits: 523 suppliers in 2016

Responsible Procurement

• Procurement Management System of Yuexiu Transport Infrastructure Limited (Trial)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Environmental, Social and Governance Reporting Guide under Appendix 27 of the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Road Safety
• Employee Health and Safety
• Supply Chain Management
• Targeted Poverty Alleviation
• Community Inclusion
• Corporate Governance
• Anti-Corruption

Environmental Achievements

• Reduced traffic accident rate by 9.6% year-on-year.
• Implemented hot central plant recycling technique in Hubei Suiyuenan Expressway to improve recycling rate of maintenance material.
• Replaced lamps with LED energy-saving ones and installed intelligent control systems to save electricity.
• Reduced paper used for receipts and invoices by 10.4% compared with 2018.
• Collected more than 1,000 kg of waste paper.

Social Achievements

• All poverty-stricken households in focused villages are lifted out of poverty (67 households with 133 persons in Xianshui Village).
• Invested RMB 20.39 million in Health and Safety.
• Successfully acquired 3 expressways (Hancai, Han'e, and Daguangnan Expressways in Hubei Province).
• Established a dual-channel career development mechanism for employees.
• Provided vocational skill training for toll collection staff.
• Reduced valid complaints received by 32% year-on-year.

Governance Achievements

• Improved corporate governance structure and management system.
• Formulated multi-layered governance rules.
• Established an internal whistle-blowing mailbox.
• No corruption or bribery lawsuit against the Company during the reporting period.
• Implemented electronic procurement system.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions (not explicitly stated, but implied by the need for supply chain management improvements)
• Decreased job demand due to the cancellation of toll stations and wider use of ETC

Mitigation Strategies

• Improved supply chain system and developed a sustainable supply chain.
• Provided skill training (computers and electrician training) to toll collectors for internal transformation and re-employment.

Supply Chain Management

Supplier Audits: 682 suppliers (2019)

Responsible Procurement

• Measures for the Management of Tenders and Procurement
• Measures for the Management of Suppliers
• Anti-corruption agreements with suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Environmental, Social and Governance Reporting Guide (Appendix 27 of the Main Board Listing Rules of the Stock Exchange of Hong Kong)

Awards & Recognition

• Hong Kong Outstanding Enterprise 2019
• Economic Digest Outstanding Infrastructure Investment and Development Award 2019
• Quamnet.com Listed Enterprises of the Year 2019
• Bloomberg Business Weekly Cover Design of Annual Report 2018: Silver Award
• Inside Pages Design of Annual Report 2018: Bronze Award
• International Annual Report Design Awards Australian Annual Report Awards: Bronze Award
• ARA Australian Reporting Awards Annual Report Design Awards: Bronze Award
• International ARC Awards 2019 ESG Award 2019
• BDO ESG Awards

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Road Safety and Quality Services
• Supply Chain Management
• Employment
• Community Building
• Anti-corruption

Environmental Achievements

• Reduced traffic accident rate by 11.7% year-on-year
• Invested RMB21.89 million in production safety
• Applied NovaChip technology to reduce pavement damage and resource consumption
• Achieved 92% reduction in indirect greenhouse gas emissions from power purchase
• Implemented paperless toll stations and reduced office paper waste

Social Achievements

• All poverty-stricken households supported were lifted out of poverty
• Invested RMB 9.256 million in poverty alleviation (98.7% utilization rate)
• Provided safety training to 13,826 employees (47.8% increase year-on-year)
• Maintained a local hiring ratio over 90%

Governance Achievements

• Updated and announced five anti-corruption policies
• Conducted anti-corruption training for all employees and contractors
• Established a comprehensive internal whistle-blowing and protection system
• No corruption or bribery lawsuits during the reporting period

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions (not explicitly stated, but implied by the focus on supply chain management)
• Maintaining traffic flow during policy changes (removal of province-border toll stations)
• Handling increased complaints due to ETC system changes

Mitigation Strategies

• Improved supplier management processes
• Active exploration of new tolling methods
• Strengthened information guidance, service training, and equipment maintenance to address ETC-related complaints

Supply Chain Management

Supplier Audits: Regular inspections and unified archival management of review results

Responsible Procurement

• Electronic procurement system
• Anti-corruption agreements with suppliers
• Local procurement (68% ratio)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Environmental, Social and Governance Reporting Guide (Appendix 27 of the Main Board Listing Rules of the Stock Exchange of Hong Kong)

Awards & Recognition

• First Prize of Science and Technology Award from China Highway & Transportation Society
• Australian Annual Report Awards: Bronze Award
• ARA Listed Enterprises of the Year 2020
• Bloomberg Business Weekly Hong Kong Outstanding Enterprise 2020
• Economic Digest Outstanding Enterprise Award 2020

Environmental Metrics

ESG Focus Areas

• Road quality and safety
• Occupational health and safety
• Anti-corruption
• Smooth traffic
• Community relations
• Energy management
• Service quality and complaint handling
• Carbon emission management
• Labor standards
• Resource utilization and recycling
• Training and career development
• Noise management
• Sustainable development
• Waste management
• Response to climate change
• Remuneration and welfare
• Land use
• Customer privacy protection
• Water resource protection
• Supply chain management
• Biodiversity

Environmental Achievements

• Reduced traffic accidents by 46.3% year-on-year compared with 2019 (excluding 2020 due to COVID-19)
• Successfully applied hot central plant recycling technique, saving around 4,300 tons of stone and 80 tons of asphalt
• Achieved 100% recycling of engineering waste
• Constructed 40 charging stations along expressways

Social Achievements

• Successfully listed Huaxia Yuexiu Expressway REIT, oversubscribed by 4,676%
• Implemented share option scheme for middle and senior managers and core employees
• Improved employee safety training by 13.3% year-on-year
• Implemented the “Xianshui Plan”, providing water for nearly 1,000 persons in Xianshui Village
• Actively participated in community anti-epidemic work

Governance Achievements

• Established an ESG Committee
• Implemented internal anti-corruption policies and systems
• Carried out in-depth incorruptibility risk investigations on 12 functional departments and 9 projects
• Established a comprehensive internal whistle-blowing and protection system
• No corruption or bribery lawsuits during the reporting period

Climate Goals & Targets

Environmental Challenges

• Potential impact of climate change on business operations (extreme weather, reduced road traffic capacity, increased costs)
• Ensuring smooth traffic during extreme weather events

Mitigation Strategies

• Established targeted emergency plans for extreme weather events
• Implemented energy-saving renovation projects (LED lamps, charging stations, pilot photovoltaic power generation project)
• Improved road maintenance capabilities through application of new technologies
• Established a dynamic supply chain management system with anti-corruption agreements with suppliers

Supply Chain Management

Supplier Audits: Regular performance evaluations, dynamic management of supplier library

Responsible Procurement

• Anti-corruption agreements with suppliers
• Local procurement (33%)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather (floods, blizzards)

Transition Risks

• Increased costs due to climate change regulations

Opportunities

• Energy-saving initiatives

Reporting Standards

Frameworks Used: Appendix 27 of the Main Board Listing Rules of the Stock Exchange of Hong Kong

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Outstanding Original Equity Holders of Infrastructure Public Offering REITs (2021)
• Shenzhen Stock Exchange Listed Enterprises of the Year (2021)
• Bloomberg Business week Outstanding Infrastructure Investment and Development Award (2021)
• Quamnet Honors (2021)
• International ARC Awards

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Climate Change
• Green Development
• Road Safety
• Employee Development
• Supply Chain Management
• Community Relations

Environmental Achievements

• Reduced CO2 emission intensity to 26.59 tonnes of CO2 equivalence/km (compared to 32.65 in 2021)
• Reduced energy consumption intensity to 54.34 MWh/km (compared to 60.54 in 2021)
• Implemented two photovoltaic projects to provide clean electricity and reduce carbon emissions
• Achieved 100% recycling rate of used asphalt materials
• Applied thin-layer asphalt pavement construction technology to reduce resource consumption and waste generation

Social Achievements

• Employees participated in about 68,000 hours of volunteer service
• 100% employee training coverage rate
• No labor violations or complaints during the year
• Improved employee communication channels and development mechanisms

Governance Achievements

• Established an ESG Committee in March 2022
• Implemented a three-tier governance structure for sustainable development
• Updated anti-corruption system and conducted 29 sessions of anti-corruption warning education for 6,725 person times
• No litigation cases due to corruption or bribery occurred

Climate Goals & Targets

Environmental Challenges

• Climate change risks including extreme weather events (typhoons, floods) and transition risks (policy, market, and technological changes)
• Maintaining smooth traffic flow with increasing traffic demand

Mitigation Strategies

• Developed contingency plans for extreme weather events
• Implemented reconstruction and expansion projects to optimize road facilities
• Developed and implemented measures to address transition risks, including accelerating low-carbon and clean operations and exploring low-carbon maintenance technologies
• Implemented a “five quick” emergency response mechanism for traffic incidents

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Implementation of anti-corruption contracts with suppliers, localized procurement, and checks on suppliers’ environmental and health, safety certifications

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons, floods, extreme temperatures

Transition Risks

• Policy changes, market shifts, technological changes

Opportunities

• Promoting green transformation of infrastructure, reducing long-term operation costs, and accessing green financing

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide, TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Special ESG Awards-Outstanding Enterprise of the Year (Listed Company) 2021/2022 Gold Awards
• Institute of ESG & Benchmark Listed Enterprise of 2022
• Bloomberg Businessweek The Listed Enterprise Excellent Awards 2022
• Capital Quamnet Outstanding Enterprise Awards 2022
• Third prize of Guangdong Intelligent Transportation Science and Technology Award of 2022
• First prize in Network Security Attack and Defense Exercise of Hunan Expressway Networking Toll Collection System