Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• All our clinker production lines are equipped with NSP technology, which generally emits lower levels of pollutants and is more energy-efficient than facilities employing non-NSP technologies.
• Employ residual heat recovery technology in the clinker production process, achieving significant cost savings on electricity and minimizing pollution.
• Obtained ISO-9001 quality control system certification, OHSAS 18000 certification and ISO 14001 certification with respect to certain of our production facilities.

Social Achievements

• Accepted as a member of CSI, a global initiative promoting sustainable development in the cement industry.
• Our cement is sold under the brand name “天瑞TIANRUI”, which has been recognized as a “Chinese Famous Trademark”.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Fluctuation in the selling price of our clinker and cement products and in the purchase price of coal.
• Intense competition in the cement industry.
• Significant regulation by the PRC government.
• Slowdown in the PRC economy or changes in political or economic policies.
• High leverage and substantial bank borrowings.
• Compliance with environmental regulations.
• Safety and health laws and regulations.
• Potential conflicts of interest with Controlling Shareholders.
• Lack of valid legal title or lease rights for certain properties.

Mitigation Strategies

• Use net proceeds from the Global Offering, cash and bank balances, cash generated from operations, and unutilized bank facilities to repay debts.
• Strengthen market position through organic growth and selective acquisitions.
• Improve production efficiency and reduce production costs.
• Develop new cement products and raw materials.
• Enhance brand awareness and marketing efforts.
• Implement internal control measures to manage financial condition and avoid future non-compliance with bank loan covenants.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO-9001, OHSAS 18000, ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Sustainable development

Environmental Achievements

• All clinker production lines are New Dry Process clinker production lines (NSP technology) equipped with residual heat power generation equipment, which can effectively reduce electricity cost and pollution
• Investment to construct residual heat recovery power generation equipment, to improve dust recovery equipment, and to construct mullock recycle system and waste materials recycle system
• Member of the Cement Sustainability Initiative (CSI)

Social Achievements

• Remuneration policies, bonus and training programs for employees were implemented continuously
• Organized a range of trainings for a total of 5,992 session-hours for 88,675 employees

Governance Achievements

• Adopted a management model in line with international standards
• Obtained ISO certifications for quality control, environmental management and occupational health and safety

Climate Goals & Targets

Environmental Challenges

• Slow growth in the Chinese economy and pressure from overcapacity in the cement industry
• Slight decline in cement sales in main operation areas
• Decreased demand for cement and clinker due to general global economy slowdown

Mitigation Strategies

• Actively worked with other enterprises to implement alternative production arrangement plans and reduce disorderly price competition
• Adjusted debt structure, strictly controlled raw material purchases, implemented lean management, and reduced energy consumption
• Cautious approach to production expansion and focus on improving operating efficiency

Supply Chain Management

Responsible Procurement

• Centralized procurement

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental Management
• Quality Products
• Care for Employees
• Ethics and Integrity
• Care for the Community

Environmental Achievements

• All clinker production lines equipped with denitrification system and bag filter, reducing nitrogen oxides and particulates.
• All clinker production lines using New Suspension Pre-heater (NSP) technology with residual heat power generation, reducing electricity cost and pollution. Generated 673,600 MWh of electricity, saving 82,000 tonnes of standard coal and reducing 220,000 tonnes CO2 emissions.
• Achieved zero wastewater discharge through full reuse of 45,773m3 of recycled wastewater.
• Recycled and/or reused 71% of hazardous waste and 94% of non-hazardous waste.

Social Achievements

• All subsidiaries passed four-in-one certifications (ISO 9000, ISO 14000, OHSAS 18001), and all clinker production companies passed ISO 50001.
• Zero accidents, fatalities, and injuries during the reporting year.
• Provided 6,401 hours of training courses for employees.
• Won 13 first prizes, 44 second prizes, and 30 third prizes in the Industry Technological Innovation Award Selection of Henan.

Governance Achievements

• Established comprehensive policies and management frameworks aligned with internationally recognized standards.
• Established anti-corruption policy with internal inspections and a whistle-blowing policy.
• Complied with laws and regulations related to anti-corruption.

Climate Goals & Targets

Environmental Challenges

• Challenging economic landscape and tightening environmental policies in China.
• Zhuanghe Tianrui Cement Company Limited, Lushan Antai Cement Company Limited and Liaoyang Tianrui Liaodong Cement Company Limited were in the process of establishing data collection systems, thus ESG-related information was not available.

Mitigation Strategies

• Significant investments in the transformation and “greening” of the production system.
• Implementation of ISO 14001 and ISO 50001 frameworks.
• Stringent sourcing requirements on coal quality to reduce sulfur and harmful substances.
• Use of electrostatic-bag composite dust collectors and denitrification systems.

Supply Chain Management

Responsible Procurement

• Supplier selections through bidding procedures based on quality, pricing, delivery time, service quality, reliability, and geographical location. Consideration of suppliers’ compliance with environmental and social laws.

Climate-Related Risks & Opportunities

Reporting Standards

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

Certifications: ISO 9000, ISO 14000, OHSAS 18001, ISO 50001

Awards & Recognition

• 13 first prizes, 44 second prizes, and 30 third prizes in the Industry Technological Innovation Award Selection of Henan