Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Corporate Social Responsibility
• Environmental Sustainability
• Safety
• Supply Chain Management
• Employee Development
• Community Investment

Environmental Achievements

• Reduced integrated energy consumption by 16.12% year-on-year to 69,441.13 tons of standard coal.
• Reduced carbon dioxide emissions by 31,030,800 tons due to the use of natural gas.
• Reduced carbon dioxide emissions by 546,900 tons due to the promotion of rural “coal-to-gas” project.
• Reduced BOG emissions by approximately 5,920 tons through various reclamation methods.

Social Achievements

• 100% customer complaint resolution rate.
• 100% employment contract coverage rate and social insurance payment ratio.
• RMB 33.72 million donated through the ENN Group Charity Foundation.
• Launched employee well-being programs including EAP platform and various cultural and sporting activities.

Governance Achievements

• Established an ESG information system for systematic collection and analysis of ESG information.
• Implemented a visualized safety system for early warning and supervision.
• Organised anti-corruption training for 1,750 staff, including 720 management personnel.

Climate Goals & Targets

Environmental Challenges

• Gas supply shortage in Changzhou in October 2017.
• Meeting increasing energy demands while reducing emissions.

Mitigation Strategies

• Established an emergency team to manage gas shortage, purchasing high-priced LNG resources and increasing capacity.
• Implementing various energy conservation and emission reduction measures, promoting coal-to-gas projects, and optimizing energy use structure.

Supply Chain Management

Responsible Procurement

• Supplier screening criteria covering business ethics, human rights, quality and safety, environmental and social influences.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Appendix 27 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, G4 Sustainability Reporting Guidelines (GRI), Guidelines on Corporate Social Responsibility Reporting in China (CASS-CSR 4.0), ISO 26000 Social Responsibility Guide

Awards & Recognition

• Best Management Team Ranking in Asia (Institutional Investor Magazine)
• Most Honored Company
• Best IR Company, Best Website, Best Analyst Days, Best IR Professional (Institutional Investor Magazine)
• 2nd Place: Best in Sector - Utilities (IR Magazine Awards)
• Certificate of Excellence (Hong Kong Investor Relations Association)
• China Top 500 (Fortune magazine)
• 2016 Top 100 Listed Company in Hong Kong (QQ.com and Finet)

Environmental Metrics

ESG Focus Areas

• Sustainable Development
• Climate Change Mitigation
• Ecological Environment
• Biodiversity
• Green Supply Chain
• Employee Well-being
• Community Investment
• Corporate Governance
• Information Security
• Business Ethics
• Supply Chain Management

Environmental Achievements

• Reduced clients’ energy usage by 227,437 tons of standard coal through integrated energy projects.
• Recovered 36,570,800 cubic meters of boil-off gas (BOG).
• Installed photovoltaic power generation devices with a total installed capacity of 8.35MW.
• Implemented “coal-to-gas” projects equivalent to offsetting the consumption of 2,318,183 tons of standard coal.
• Reduced carbon dioxide emissions by approximately 340 tons and sulphur dioxide emission by 5.13 tons annually through geothermal heating project.
• Reduced carbon dioxide emissions by 67,300 tons annually through biomass utilization project.
• Saved 900 tons of standard coal annually at Sino-German Eco-park through intelligent energy management.
• Reduced carbon dioxide emissions by about 8,100 tons per year at Changsha Huanghua International Airport through intelligent energy management.
• Saved more than 900 tons of standard coal each year at Sino-German Eco-park through intelligent energy management.

Social Achievements

• Donated a total of RMB51.72 million in charity.
• Resolved all 21 labor-related complaints with a 100% handling rate.
• Provided training to 200,132 employees and conducted 2,627 emergency drills.
• Achieved 100% privatization of customer service system and 100% customer service staff signed specific privacy protection agreements.
• Client satisfaction reached 93%.

Governance Achievements

• Established the ESG Committee.
• Improved corporate governance structure in accordance with relevant laws and regulations.
• Implemented Policy on the Diversity of Board Members.
• Independent non-executive directors accounted for 40% of the board members.
• Developed and implemented anti-corruption policies and training programs.
• Conducted 21 training sessions on ethics and integrity with 1,680 participants.
• No anti-corruption cases were brought against the Company.

Climate Goals & Targets

Environmental Challenges

• Extreme weather events affecting construction and operation.
• Intense competition in the gas market.
• Challenges in guaranteeing supply during peak season.
• Impact of COVID-19 pandemic on the economy.

Mitigation Strategies

• Improved intelligent operation and management.
• Enhanced pipeline construction quality.
• Developed integrated energy business and value-added services.
• Expanded natural gas procurement channels.
• Utilized alternative clean energy sources.
• Developed emergency plans for winter gas supply.
• Implemented measures to support pandemic prevention and control, including employee protection, social assistance, and business recovery support.

Supply Chain Management

Supplier Audits: 82% of suppliers are accredited with ISO14000 certification. Factory inspections conducted for key suppliers.

Responsible Procurement

• Code of ENN Energy Holdings Limited Supplier Corporate Social Responsibility Code of Conduct
• Supplier performance assessments
• ISO14000 and ISO9000 certifications considered in supplier selection
• Supplier blacklist mechanism

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (typhoons, rainstorms)

Transition Risks

• Increased competition in clean energy market
• Government regulations on energy conservation and emission reduction

Opportunities

• Government policies promoting natural gas use and coal-to-gas conversion
• Growth of clean energy market

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards, HKEX’s ESG Reporting Guide

Certifications: OHSAS 18001, ISO 45001, ISO 14001, ISO 9001

Sustainable Products & Innovation

• Geothermal heating solution
• Biomass-based renewable energy system

Awards & Recognition

• World’s 50 Most Valuable Public Utility Brands 2020 (24th rank globally, 3rd in China)
• Top 500 Chinese Companies (No. 147)
• Forbes Global 2000 (No. 996)
• Ranked 82nd in the Top 100 HK list
• Best Investor Relations (for Corporate Transactions)
• Outstanding Performance Award in the 5th Investor Relations Awards 2019
• Energy and Resources: Comprehensive Presentation Gold Award
• 2019 All-Asia Executive Team awards

Environmental Metrics

ESG Focus Areas

• Decarbonization
• Energy Transition
• Sustainable Development
• Safety
• Digitalization

Environmental Achievements

• Reduced GHG emission intensity of the city-gas business by 28.5% compared to 2019 (ahead of schedule)
• Reduced energy consumption per unit area of office buildings by 11% (ahead of schedule)
• Annual biomass consumption reached 1.87 million tonnes by June 30, 2024 (progressing towards 3.27 million tonnes by 2030)
• Reduced GHG emission intensity per unit of energy generated in IE business by 36.5% compared to 2019

Social Achievements

• Provided value-added products and safety services for a cumulative total of 29.77 million residential gas users
• Implemented E-Carbon Pass System to incentivize employee participation in emission reduction
• Increased the ratio of new energy vehicles in ENN Energy's office vehicles to 60% (ahead of schedule)

Governance Achievements

• Established an ESG Committee reporting to the Board of Directors
• Tied key performance indicators for low-carbon development to executive compensation
• Released its first Climate-Related Financial Disclosure Report (TCFD-aligned)

Climate Goals & Targets

Environmental Challenges

• Methane emissions from city-gas operations
• Meeting ambitious GHG emission reduction targets
• Technological limitations in hydrogen and geothermal energy applications
• Lack of unified guidance on CCUS

Mitigation Strategies

• Implementing methane control measures across city-gate stations, pipelines, and ancillary facilities
• Investing in PTZ laser methane monitoring systems
• Expanding the application of unmanned city-gas stations
• Exploring innovative technologies such as natural gas blending with hydrogen and bio-natural gas production
• Implementing integrated energy and carbon management policies
• Continuous assessment of CCUS feasibility

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD, Transition Pathway Initiative (TPI), International Energy Agency (IEA)

Third-party Assurance: S&P Global (second-party opinion)

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Reduced the intensity of Scope 1 and 2 greenhouse gas (GHG) emissions by 20% (city gas business) and 48% (integrated energy business) by 2030 against a 2019 baseline
• Issued US$750 million and US$550 million of green bonds in 2020 and 2022 respectively.
• Achieved a 21% share of renewable energy in energy use in IE operations in 2022

Social Achievements

• Incorporated ESG training into employee value creation assessment
• Incorporated new energy application and promotion into remuneration assessment
• Established an ESG Key Matters Incentive Mechanism

Governance Achievements

• Established a climate change governance system led by the Board of Directors, supported by the Risk Management Committee and the ESG Committee.
• Incorporated climate-related metrics into the compensation system for management and business teams.
• Established a claw-back mechanism for management personnel for major mistakes affecting sustainable development.

Climate Goals & Targets

Environmental Challenges

• Declining demand for natural gas due to increased average temperatures
• Gradual replacement of natural gas by clean energy in the energy mix
• Increased compliance costs due to carbon pricing
• Increased logistics costs due to fossil fuel price increases
• Typhoons impacting coastal sites
• Floods damaging pipelines and facilities
• Heatwaves affecting worker productivity

Mitigation Strategies

• Developed a mathematical forecasting model for the impact of temperature change on heating gas volume
• Diversified natural gas use scenarios
• Developed IE business, promoted the use of new and renewable energy
• Implemented reinforced hydraulic engineering and flood control measures
• Integrated Digital Intelligence Platform for risk alerts
• Developed contingency plans for flood control and lightning protection
• Created an emergency response plan to address heat-related illnesses
• Tracking the progress of carbon market laws and regulations
• Gradually replacing non-production vehicles with renewable energy vehicles
• Transformation and upgrading of business structure, expanding the supply rate of renewable energy in IE business
• Increased investment in clean energy R&D and developing hydrogen-related services

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons
• Floods
• Rising average temperatures
• Heatwaves

Transition Risks

• Dual-carbon policy
• Carbon price
• Fossil fuel price

Opportunities

• Resource efficiency
• Product and service opportunities (IE business)
• Growing demand for hydrogen energy
• Green finance

Reporting Standards

Frameworks Used: TCFD

Sustainable Products & Innovation

• Hydrogen-related services
• Integrated energy solutions

Awards & Recognition

• Best Green Bond Award (2020)
• Outstanding Award for Green and Sustainable Bond Issuer (Clean Energy) – The Largest Single Green Bond (2022)
• Best Bond Trading Award (2022)

Environmental Metrics

ESG Focus Areas

• Safety
• Climate Change
• Decarbonization
• Sustainable Development
• ESG Governance

Environmental Achievements

• Reduced carbon dioxide emissions by 45.11 million tons through natural gas sales (equivalent to reducing 15.12 million tons of standard coal consumption)
• Reduced carbon dioxide emissions by 10.99 million tons through integrated energy sales (equivalent to reducing 2.67 million tons of standard coal consumption)
• 76 project companies obtained ISO 14001 & ISO 45001 certifications

Social Achievements

• Increased safety investments to strengthen hazard identification and control
• Deepened application of safety intelligence and capability building, introducing AI shut-off valves and other safety technologies
• Upgraded intelligent security inspections and smart stations
• Customer satisfaction rate of 90.8%

Governance Achievements

• Released the first "2022 Climate-Related Financial Disclosure Report"
• Launched the ESG smart ecological platform to enhance ESG information management and analysis capabilities
• Internal promotion of the low-carbon office system
• Received MSCI’s AA rating for two consecutive years
• Improved S&P Global Corporate Sustainability Assessment (CSA) score from 56 to 63 points

Climate Goals & Targets

Environmental Challenges

• Challenges in the natural gas industry stemming from macroeconomic factors, climate change, energy substitution, and pricing fluctuation
• Increasingly intense competition due to a surge in innovation and iteration of integrated energy technologies and models
• Weak exports and a sluggish real estate sector structurally suppressing natural gas demand
• Decline in corporate profits increasing cost sensitivity
• Significant reduction in international market opportunities due to lower international natural gas prices

Mitigation Strategies

• Intelligent and continuous innovation in natural gas products and service models
• Enterprise-level carbon-integrated solutions
• Expansion of quality of life services for households
• Prudent financial management and well-managed expenditures
• Effective cost control
• Currency swap to reduce non-functional currency-denominated debts
• Commodity hedging mechanisms to stabilise international LNG procurement costs
• Forward foreign exchange contracts to stabilise procurement costs

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14001, ISO 45001

Awards & Recognition

• Most Honored Company
• Best CEO
• Best CFO
• Best Board of Directors
• Best IR Team
• Best ESG from Institutional Investor
• Best ESG Practices for Chinese Listed Companies 2023 from Wind