Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection

Environmental Achievements

• Invested more than RMB 10 million on upgrading technology for environmental protection facilities and energy-saving and emission reduction projects in 2015. Implemented energy conservation and emissions reduction from several aspects, such as filter improvement and dust emissions deduction; improved denitration device to reduce nitrogen oxide emissions; built large water pool to save water resources; constructed loop water treatment and purification equipment to no longer use tap water; and equipped with muffler and sound barriers to further weaken the noise. Has a capacity of digestion and save of coal ash, flue gas desulfurization gypsum and tailings more than 0.1 million tones every year. Actively assisted the local government to disposal of urban domestic sludge and solid waste projects.

Social Achievements

• Established good and stable relations with employees, customers and suppliers. Regards its employees as the most important and valuable assets. Motivates outstanding staffs with competitive remuneration package and comprehensive performance assessment, and assists staff to develop their career and get promotion in the Group by providing suitable training and opportunities. Encouraged employees to actively participate in the management of the enterprise, to adopt reasonable suggestion, promote all staff to treat plant as home, be proud of the factory, and give full play to the staff’s enthusiasm and subjective initiative. Adheres to the principle of customer first, and identified the customer’s demand and improved customer satisfaction by customer information collection, analysis and processing. Established cooperation relationship of cooperation and mutual benefits and win-win with its suppliers, and jointly explore the market to expand market demands and share and reduce operating cost of the early stage of the product through the integration of resources and competitive advantages.

Governance Achievements

• Complied with SFO, Listing Rules and all other relevant legislations and regulations which have significant impacts on the Company. Established the audit committee, the nomination committee and the remuneration committee. All Directors have attended the directors’ training held by competent professionals engaged by the Company, in relation to, among other things, responsibilities of directors, continuous responsibilities of the listed company on information disclosure, corporate governance and the latest amendment to the Listing Rules.

Climate Goals & Targets

Environmental Challenges

• Adverse effects of growth slowdown in macro-economy, an increase in cement production in the region and a recessed real estate market and the longer plum rains in 2015. Intense competition among cement producers in the market. Significant fluctuations in the market price of cement. Demand for cement significantly affected by the rainy season. Stringent PRC environmental regulatory framework.
• Disruptions by reasons beyond our control such as adverse climatic conditions and government activities (fires, natural disasters, epidemics, raw material shortages, equipment and system failures or other operational problems, strikes or other labour difficulties and disruptions of public infrastructure such as roads, ports or power grids).

Mitigation Strategies

• Proactively adjusted operating strategies, which included enhancing internal management, maintaining consistent product quality, expanding sales channels. Strengthened the management in the procurement of raw and auxiliary materials, the consumption of each item and the production equipment and technologies, and strictly controlled the production cost. Actively explores new customers to reduce the adverse effects of the risk. Keeps the production in order and actively increase the sales volume when risks have not yet appeared. Conducted large-scale equipment maintenance to meet the requirement of environmental protection, energy conservation and emission reduction.

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Product Quality and Safety
• Operational Excellence
• Personnel Management
• Occupational Safety and Health
• Waste Gas Management and Emission Reduction
• Hazardous Waste Management and Emission Reduction
• Environmental Compliance
• Community Contribution
• Anti-corruption

Environmental Achievements

• Invested RMB15 million in energy conservation renovation of firing system, saving approximately 5,000 tonnes of standard coal and reducing 130,000 tonnes of carbon dioxide per year.
• Achieved a 15% reduction in nitrogen oxide emissions compared to 2020.
• Achieved zero sewage discharge and 100% recycling of water consumption in the workshop.
• Reduced total energy consumption by approximately 7% compared with 2020.

Social Achievements

• Overall customer satisfaction rate of 96.3%
• 100% customer complaint handling rate
• 100% passing rate of ex-factory cement
• Zero major injuries and fatalities
• Zero occupational disease incidence rate
• Donated RMB0.3 million to Wujiang Charity Association

Governance Achievements

• Established anti-corruption working group and conducted anti-corruption training for all management staff.

Climate Goals & Targets

Environmental Challenges

• Weakening demand, increasing requirements on environmental protection and energy efficiency, rising costs, and investment in carbon reduction innovation in the cement industry.
• Fluctuation in cement demand and supply due to decline in fixed asset investment, real estate, and infrastructure investment.
• Insufficient supply and sharp rise in costs due to energy consumption and intensity controls, power and production restrictions, and soaring coal prices.
• Tightening environmental protection policies in the PRC limiting the ability to expand cement production.
• Increase in raw material market, especially coal prices, pushing up the cost of cement production.

Mitigation Strategies

• Strengthened management in procurement of raw and auxiliary materials, consumption of each item, and manufacturing equipment and techniques to strictly control production cost.
• Continued to promote technology innovation and technological reform to improve production efficiency, reduce production cost, and enhance overall competitiveness.
• Actively exploring investment opportunities in emerging industries (new energy and biopharmaceutical) to diversify business and enhance shareholder value.
• Investing in upgrading and transforming existing machines and equipment to meet tightening environmental requirements.
• Implementing ultra-low emission to control emission concentration below 100mg/m3.

Supply Chain Management

Supplier Audits: 19 qualified suppliers, annual re-evaluation and irregular assessment.

Responsible Procurement

• Assessment of environmental risk and social risk
• Assessment of corporate environmental responsibility, employees’ right and occupational health and safety
• Green procurement prioritizing environmentally friendly raw materials.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 9001, ISO 14001, ISO 45001