Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced carbon dioxide emissions by 508,100 tonnes through self-generated hydropower.
• Improved power grid structure to reduce transmission losses.
• Implemented fish breeding and release programs to enhance the ecological flow of hydropower stations.

Social Achievements

• Restored power supply to 29,276 households within 43 hours after a magnitude 6.0 earthquake.
• Maintained stable safety production with no major accidents.
• Conducted various employee welfare activities.

Governance Achievements

• Established an ESG management structure overseen by the board of directors.
• Implemented policies to prevent bribery, extortion, fraud, and money laundering.
• Established a whistle-blowing management system.

Climate Goals & Targets

Environmental Challenges

• Natural disasters such as earthquakes, geological disasters, and floods.
• Impact on fish biodiversity in the upper and lower reaches of rivers near power generation stations.

Mitigation Strategies

• Potential hazards investigation and management, safeguarding emergency supplies and equipment, improving employees’ emergency responding capabilities.
• Built ecological flow monitoring facilities, composed ecological flow release plans, established a management and monitoring system for ecological flow release facilities.

Supply Chain Management

Supplier Audits: 222 suppliers

Responsible Procurement

• Considered environmental protection as a necessary evaluation criterion in the bidding process.
• Strictly verified suppliers’ compliance records and product environmental standards.
• Encouraged suppliers to provide ISO9001 and ISO14001 certifications.

Climate-Related Risks & Opportunities

Physical Risks

• Earthquakes
• Geological disasters
• Floods

Reporting Standards

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

Environmental Metrics

ESG Focus Areas

• Use of energy and efficiency
• Use of water resources and efficiency
• Health and safety
• Employment and employee welfare
• Potential impacts of environment and natural resources on the company
• Employee development and training

Environmental Achievements

• Introduced new grid-connected hydropower stations to provide green energy.
• Strengthened power grid upgrading, improved grid structure, and reduced transmission loss.
• Carried out fish propagation and release in the Hengjiang region.
• Developed charging pile business, supporting new energy vehicles and promoting energy conservation and emission reduction.
• CO2 emission reduction from self-generated power: 366,066.10 tonnes CO2 (compared to 508,100.00 tonnes in 2019).

Social Achievements

• Maintained normal electricity usage during the COVID-19 pandemic.
• Restored electricity for 38,882 households swiftly after a storm.
• No production safety accidents above general level occurred throughout the year.
• Launched various caring activities for employees (festive greetings, pandemic greetings, Women’s Day activities, etc.).
• Organized safety training sessions with over 3,000 person-times.

Governance Achievements

• Established an ESG management structure overseen by the Board of Directors.
• Formulated various internal management policies (Anti-fraud and Bribery Management Measures, etc.).
• Implemented a whistle-blowing management system.
• No litigation relating to corruption or bribery received.

Climate Goals & Targets

Environmental Challenges

• Extreme weather events (earthquakes, geological disasters, floods) that may damage assets and hinder operations.
• Impact on fish biodiversity due to hydropower station water intake.

Mitigation Strategies

• Regular potential hazard investigation and management.
• Ecological flow release plan based on ecological water demand.
• Enhanced employees’ emergency response capability.
• Close contact with Yibin Meteorological Bureau for weather monitoring.
• Organized environmental protection activities (front pool dredging, fish propagation and release, garbage removal).

Supply Chain Management

Supplier Audits: 224 power procurement suppliers

Responsible Procurement

• Strict compliance with Electric Power Law of the PRC and Environmental Protection Law of the PRC during supplier assessment.
• Environmental protection as a necessary evaluation criterion.
• Penalties for suppliers violating environmental protection regulations.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (earthquakes, geological disasters, floods)

Reporting Standards

Frameworks Used: Environmental, Social and Governance Reporting Guide (2016 version), Appendix 27 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employee Welfare
• Community Engagement
• Governance
• Safety
• Responsible Procurement
• Anti-corruption

Environmental Achievements

• Introduced new grid-connected hydropower stations providing green energy.
• Strengthened power grid upgrading, improving grid structure and reducing transmission loss.
• Carried out fish propagation and release in the Hengjiang region, contributing to improving the living environment for rare fish.
• Vigorously developed charging pile business, supporting the promotion and application of new energy vehicles.

Social Achievements

• Maintained stable safety production conditions with no major safety accidents.
• Increased investment in production safety and promoted technological innovation, protecting employee health and safety.
• Accelerated talent training and promoted employee career development.
• Zero work-related fatalities in the past three reporting years.

Governance Achievements

• Strengthened ESG management and improved the corporate governance system, resulting in increased revenue and shareholder returns.
• Formulated Anti-fraud and Bribery Management Measures and implemented anti-corruption training.
• Established an ESG Working Group reporting to the Board of Directors.

Climate Goals & Targets

Environmental Challenges

• Extreme weather risk (damage to power supply facilities)
• Fire risk (damage to assets from forest fires)
• Water risk (drought affecting hydropower generation)
• National energy policy risk
• Talent training risk
• Health and safety risks
• Risk of talent loss
• Risk of fraud and bribery

Mitigation Strategies

• Strengthened emergency response capabilities (emergency command center, rescue team, drills)
• Optimized route paths to avoid forest areas, improved equipment protection measures
• Increased purchased power supply, maximized water storage capacity, orderly electricity use
• Transformation into an integrated energy supplier, installing charging piles
• Annual human resources strategic planning, subsidiary training plans covering strategic planning and job requirements
• Investigation and rectification of hidden risks and hazards, regular safety inspections
• Annual review and analysis of employee structure, talent promotion channel and salary system
• Formulated Anti-fraud and Bribery Management Measures, annual fraud risk assessment, integrity publicity and training

Supply Chain Management

Supplier Audits: 233 power procurement suppliers (2021)

Responsible Procurement

• Green procurement practices
• Consideration of environmental and social risks of suppliers
• Compliance with environmental protection and safety regulations

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (heavy rains, floods, mudslides)

Transition Risks

• National energy policy changes

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: SEHK's ESG Reporting Guide

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Climate Change
• Natural Resources
• Energy Conservation and Emission Reduction
• Human Resources Management
• Occupational Health and Safety
• Employee Training and Development
• Community Investment
• Supply Chain Management
• Anti-corruption

Environmental Achievements

• Continued to strengthen the upgrading and transformation of power grids to reduce transmission losses.
• Organized the proliferation and release of fish in the Hengjiang River Basin, making positive contributions to improving the ecological environment of fish upstream of the Yangtze River.
• Reduced CO2 emissions from self-generated power (specific figures provided in the report).

Social Achievements

• Maintained stable production safety situation with no general or above accidents throughout the year.
• Ensured 100% user satisfaction during extremely high temperatures, minimum rainfall, and maximum power load.
• Invested RMB20,281,239 Yuan in health and safety production resources and organized over 78 hours of health and safety training for over 12,000 person-times.
• Zero work-related fatalities in the past three reporting years.

Governance Achievements

• Awarded the title of “Enterprise Credit Rating AAA Credit Enterprise” in China.
• Implemented the “dual-carbon” development strategy and explored comprehensive energy investment and construction projects.
• Established an ESG Working Group reporting to the Board of Directors.
• Formulated Anti-fraud and Bribery Management Measures and other systems to prevent corruption.

Climate Goals & Targets

Environmental Challenges

• Extreme weather risk (heavy rainfall, thunderstorms, storms damaging power supply facilities).
• Fire risk (forest fires damaging transmission and distribution facilities).
• Water risk (drought and decreased rainfall affecting hydropower generation).
• National energy policy risk.
• Talent training risk.
• Health and safety risks.
• Risk of talent loss.
• Risk of fraud and bribery.

Mitigation Strategies

• Strengthened construction of emergency response capabilities (Emergency Plan for Severe Weather Disaster, etc.).
• Implemented unified arrangement for forest fire prevention, reasonable deployment of insulation lines, and strengthened monitoring and control of power supply equipment.
• Increased reserve of purchased power, stored water during non-drought seasons, and reduced power consumption of high-energy-consuming enterprises.
• Actively developed smart integrated energy and transformed into a smart integrated energy service provider.
• Evaluated and adjusted human resources strategy annually, supervised training plans, and conducted interviews with senior management.
• Carried out inspections on key time slots and important areas, investigated and rectified hidden dangers of safety production risks.
• Re-evaluated and analyzed employee structure annually, formulated talent demand and employment plans.
• Formulated Anti-fraud and Bribery Management Measures, conducted annual fraud risk assessment, and established a Whistle-blowing Management System.

Supply Chain Management

Supplier Audits: 283 power procurement suppliers, all implementing procurement management policies.

Responsible Procurement

• Compliance with Electric Power Law of the People’s Republic of China, Environmental Protection Law of the People’s Republic of China, etc.

Climate-Related Risks & Opportunities

Physical Risks

• Severe convection weather, fog, storm, thunderstorm, floods, and mudslides

Reporting Standards

Frameworks Used: SEHK ESG Reporting Guide (2019 version)

Awards & Recognition

• “Enterprise Credit Rating AAA Credit Enterprise”