Climate Change Data

Environmental Metrics

ESG Focus Areas

• Health & safety
• Environment & natural resources
• Employment
• Anti-corruption
• Consumption of resources
• Emissions

Environmental Achievements

• Penglai site achieved power consumption per unit output of 324.5 kWh/tonnes (target: ≤410 kWh/tonnes)
• Penglai site achieved water consumption per unit output of 1.6 cubic meters/tonnes (target: ≤3.0 cubic meters/tonnes)
• Concentration of toluene discharged was 0.0151 mg/m³ (target: ≤40 mg/m³)
• Concentration of dimethylbenzene discharged was 1.1284 mg/m³ (target: ≤70 mg/m³)
• Concentration of respirable suspended particles discharged was 4.86 mg/m³ (target: ≤120 mg/m³)
• 100% of hazardous waste was collected and sorted, and passed to certified third party for further handling
• Noise level of factories maintained at 56 dB during daytime and 47 dB during nighttime (target: ≤60dB daytime, ≤50dB nighttime)

Social Achievements

• Established a psychological counseling center for employees
• Provided annual body checkups for employees
• Provided various types of safety training and seminars
• No work-related fatalities or safety incidents
• 3,125 employees trained (91% of total employees), averaging 16.5 hours per employee

Governance Achievements

• Established the Risk and Opportunity Management Procedures
• Formulated various management policies, including Occupational Health, Safety and Environmental Policy, Supplier Management Procedures and Personnel Management System
• Established the gifts notification system and anti-corruption reporting mechanism
• Provided integrity ethics and anti-corruption trainings to 2,633 employees

Climate Goals & Targets

Environmental Challenges

• 11 work-related accidents due to employees' lack of safety awareness and improper operation of machinery
• Significant increase in energy consumption (124%) due to increased workload and additional machinery
• 87% increase in total GHG emissions due to increased workload

Mitigation Strategies

• Investigated work-related accidents to identify hazards and implement improvement measures
• Implemented various energy-saving and emission-reduction measures (e.g., setting electricity saving rules, using low-consumption products, air-conditioning usage requirements, energy-saving lights, regular inspections)
• Provided employees with training on energy conservation and emission reduction

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Management Procedure, selecting suppliers based on fairness, justice, openness, background, and importance of products or services

Climate-Related Risks & Opportunities

Physical Risks

• Frequent typhoons, heavy rains, and other severe weather

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix 27 of the Rules Governing the Listing of Securities of the Stock Exchange of Hong Kong Limited)

Certifications: OHSAS18001:2007, ISO 14001, ISO 19001

Third-party Assurance: Carbon Care Asia (for carbon assessment)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Employee Management and Wellbeing
• Environment and Natural Resources
• Business Operations and Product Responsibility

Environmental Achievements

• Reduced hazardous waste by approximately 38% compared with 2021.
• Reduced non-hazardous waste by approximately 52% compared with 2021.
• Reduced total greenhouse gas emissions by approximately 49% from the previous year.
• Reduced nitrogen oxides emissions by 23%, sulphur oxides emissions by 42%, respiratory suspended particulates emissions by 66%, and VOCs emissions by 83%.

Social Achievements

• No work-related fatalities.
• Provided support and compensation to 32 employees with work-related injuries.
• 3,4095 employees received training, with an average of 25.97 hours of training per employee.
• No violations of laws or regulations relating to compensation and dismissal, recruitment and promotion, working hours, rest periods, equal opportunity, diversity, anti-discrimination, and other benefits and welfare.

Governance Achievements

• Established a sound governance structure with an ESG working group directly under the Board.
• Implemented the “Climate Change Policy” and the “Risk and Opportunity Management Procedure”.
• Arranged integrity, ethics, and anti-corruption training for directors and employees.

Climate Goals & Targets

Environmental Challenges

• Tightening environmental protection policies leading to increased operating costs.
• Risks associated with hazardous waste disposal.
• Potential for non-compliance due to environmental impacts.
• Impact of extreme weather events on operations and worker safety.
• Inherent safety risks in the petroleum and natural gas equipment and services industry.
• Risks associated with bribery, corruption, and other unethical business practices.

Mitigation Strategies

• Expanding the use of renewable energy and developing low-carbon policies/measures.
• Developing emission reduction targets and action plans.
• Identifying and formulating a hazardous waste management list, proper storage, hiring qualified contractors, providing training and emergency drills, and developing an emergency plan.
• Regularly monitoring environmental impacts and maintaining communication with stakeholders.
• Incorporating climate change into the enterprise risk framework and developing relevant policies.
• Enhancing the Group’s resilience to climate change.
• Regularly updating safety equipment, strengthening on-site risk management and safety supervision, developing special work arrangements for adverse weather, and enhancing health and safety training.
• Developing mechanisms and procedures for business ethics, regularly assessing risks, establishing an independent audit department, providing regular training, making anti-corruption a KPI, and regularly reviewing complaint mechanisms.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Selecting environmentally and socially responsible suppliers
• Incorporating sustainability concepts into supply chain management
• Requiring all suppliers to undertake environmental and social responsibilities

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Tightening environmental protection policies

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix 27 of the Rules Governing the Listing of Securities of the Stock Exchange)

Certifications: ISO 14001, OHSAS 18001:2007, ISO 19001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed