Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Occupational Health and Safety
• Employee Care
• Supply Chain Management
• Community Involvement
• Anti-corruption

Environmental Achievements

• Reduced energy consumption intensity to 2.27 GJ per tonne of LNG (from 2.5 GJ/tonne in 2019-2020)
• Reduced water consumption intensity to 1.46 cubic meters per tonne of LNG production
• Implemented various energy conservation and emission reduction measures
• Adopted proper waste disposal methods, ensuring compliance with regulations

Social Achievements

• No lost days due to work-related injuries or fatalities
• Implemented multi-level safety training programs with 100% employee coverage and an average of 26 training hours per employee
• Contributed RMB84,400 to social and environmental sectors and provided 366 hours of volunteer work
• No reported cases of child labor or forced labor

Governance Achievements

• Established an anti-corruption management system with whistle-blowing procedures
• Formulated a comprehensive production management system to ensure product quality
• Implemented a customer complaint handling mechanism

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the pandemic (spare parts shortage)
• Water shortage (addressed through responsible water usage and recycling)

Mitigation Strategies

• Sought substitute spare parts from other regions
• Improved water utilization efficiency and wastewater treatment

Supply Chain Management

Supplier Audits: 157 suppliers assessed using Supplier Performance Evaluation Form and Supplier Periodic Risk Assessment Form

Responsible Procurement

• Consideration of ESG performance during supplier selection
• Preference for suppliers with environmental protection certifications
• Promotion of green procurement practices
• Use of recyclable packaging

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Appendix 27 to the Rules Governing the Listing of Securities on the Main Board of The Stock Exchange of Hong Kong Limited

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Occupational Safety & Health
• Career Development
• Green Supply Chain
• Anti-corruption

Environmental Achievements

• Reduced total energy consumption by 1.37% compared to 2022
• Successfully achieved the planned emission reduction target of 150,000 cubic meters
• Implemented innovative circulating water management strategy at Xingxing Energy, effectively recycling and reusing wastewater

Social Achievements

• Established a comprehensive employee management system, including internal management regulations such as the “Labour Contract Management System”, “Staff Recruitment and Employment System”, “Salary and Welfare Management System” and “Group Anti-Discrimination and Harassment Rules
• 100% of employees received training, totaling 6,791 hours
• No incidents of lost work days or work-related fatalities attributable to work injuries over the past three years

Governance Achievements

• Established an anti-corruption supervision system to prevent illegal acts such as bribery and corruption
• Created a “Whistle-blowing Policy” and a “Whistle-blower Protection System”

Climate Goals & Targets

Environmental Challenges

• Climate change risks including extreme weather events, sea level rise, and increased temperatures impacting production efficiency and employee health
• Transition risks such as stricter government regulations, low-carbon transformation costs, and changes in consumer demand
• Complex gas composition and large fluctuations in component content in oil and gas business making emission target setting difficult for oil and gas business emissions

Mitigation Strategies

• Implemented a weather monitoring system, emergency plans for extreme weather events, and strengthened site selection and design to improve resilience
• Investing in clean technologies and energy efficiency improvements, actively participating in policy formulation, and conducting research on green technologies
• Implementing various energy-saving and emission reduction measures, setting carbon emission reduction targets, and managing climate change risks and opportunities

Supply Chain Management

Responsible Procurement

• Procurement Management System
• Supplier Risk Periodic Evaluation Form
• Supplier Directory, Qualification Approval, Selection and Reuse, Evaluation and Risk Identification Form
• Supplier Risk Management
• Supplier Performance Evaluation Form
• Contractor Directory, Qualification Approval, Selection and Reuse, Evaluation and Risk Identification Form
• Supplier Environmental Identification and Social Risk Response

Climate-Related Risks & Opportunities

Physical Risks

• Frequent extreme weather events
• Long-term extreme high-temperature weather
• Sea level rise
• Average temperature rise

Transition Risks

• More stringent government regulations and policies
• Restrictions on the use of fossil fuels
• Stricter regulatory requirements for environmental information disclosure
• Price fluctuations in carbon trading
• Changes in consumer demand
• Increase in cost of raw materials

Opportunities

• Increased demand for green and low-carbon energy solutions

Reporting Standards

Frameworks Used: Appendix C2 of the Listing Rules on the Main Board of the Stock Exchange of Hong Kong Limited, Environmental, Social and Governance Reporting Guidelines