Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Comprehensive energy consumption per CNY10,000 of output value decreased year-on-year by 9.6%
• 35 new energy projects put into operation with a total installed capacity of 105.5 MW
• Comprehensive utilisation rate of general solid waste was 62.76%
• Increased green area by 45.45 million square metres, carbon sink conversion amount was approximately 185,000 tonnes
• Jinjie Energy Coal-fired Power Plant's Post-combustion Carbon Dioxide Capture and Storage project captured 43,000 tonnes of carbon dioxide

Social Achievements

• No major or above safety production accidents occurred.
• Successfully completed the operation test of the first high-power hydrogen-powered shunting locomotive in China
• External donations reached CNY531 million
• Worker’s union coverage reached 100%
• Percentage of localized employees in the overseas enterprises was 89.1% in 2022

Governance Achievements

• Selected into the list of Demonstration State-owned Enterprises (SOEs) on Corporate Governance
• Formulated the Guidelines on Compliance Risk Prevention and Control of A+H Listed Company
• Completed the annual internal control effectiveness evaluation and major risk assessment without any major risk events
• Incorporated ESG indicators into the operational performance assessment of Director and Senior Management

Climate Goals & Targets

Environmental Challenges

• Climate change risks (physical risks: extreme weather, rise of average temperature, sea level rise, water shortage; transitional risks: climate policy, carbon market trading, low-carbon technology costs, changes in market demand, stakeholder concerns)
• Potential impact of climate change on business

Mitigation Strategies

• Formulated the Action Plan for Carbon Peaking
• Established a climate change governance structure
• Implemented various energy conservation and carbon reduction measures
• Actively promoted the development of new energy
• Strengthened carbon asset management
• Explored carbon reduction technologies such as carbon capture and carbon offset

Supply Chain Management

Supplier Audits: 4,837 suppliers disqualified due to violations; 40 included in the list of key concerns

Responsible Procurement

• Green Procurement Measures (Trial)
• Policy of China Shenhua for Suppliers’ Management of Environment, Social and Governance (ESG) (Trial)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Rise of the average temperature
• Sea level rise
• Water shortage

Transition Risks

• Climate policy
• Carbon market trading
• Low-carbon technology costs
• Changes in market demand
• Stakeholder concerns

Opportunities

• Provision of green and environmentally-friendly products and services
• Usage of clean energy
• Investment in low-carbon energy

Reporting Standards

Frameworks Used: GRI Standards, HKEx Guidelines on Information Disclosure of Climate, TCFD recommendations

Certifications: ISO 14001 (19 enterprises), ISO 50001 (13 enterprises), ISO 45001/OSHAS18001 (1 enterprise)

Third-party Assurance: KPMG Huazhen LLP

Sustainable Products & Innovation

• Clean and high-efficiency coal power units
• Hydrogen-powered shunting locomotive

Awards & Recognition

• China Environment Excellence Award (Huanghua Port)
• Excellence Award of the 11th China Environment Award (Huanghua Port)
• National Supply Chain Innovation and Application Demonstration Enterprise (Materials Company)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Ecological Environmental Management
• Pollution Prevention and Control
• Resource Utilisation Optimisation
• Biodiversity
• Supply Chain Management
• Community Engagement
• Community Development and Public Welfare Investment
• Product Responsibility
• Safety and Health
• Corporate Governance
• Labour Rights and Cares
• Employee Training and Development
• Employee Care

Environmental Achievements

• Green mines accounting for 100%
• Standard coal consumption reduced by 0.61% year-on-year
• 4,000 MW from clean and efficient units put into operation
• CCUS device of Jinjie Energy Power Plant captured 31,500 tonnes of carbon dioxide
• Shendong Coal Baode Colliery’s “Demonstration Project of High-Efficiency Gas Extraction from Surface and Underground” listed as a national demonstration project
• New greening area of 22.75 million square metres added, with the equivalent amount of carbon sinks of about 93,000 tonnes
• Emission-control enterprises completed carbon market performance, with a performance rate of 100%
• A total of 6.598 million tonnes of carbon quotas were traded throughout the year

Social Achievements

• Investment in occupational health CNY647 million
• Social donations CNY438 million
• Investment in environmental protection CNY2.339 billion
• Investment in production safety CNY2.633 billion
• Investment in research and development CNY4.453 billion
• Successfully conducted corporate carbon inventory and third-party carbon verification
• Localised employment ratio of PT.GH EMM Indonesia was 82%; the localised employment ratio of the construction for South Sumatra No. 1 Project was 75%; the localised employment ratio of Indonesian Java Power Plant was 64%
• Total expenditure on rural revitalisation for the year was approximately CNY74.55 million with 31 projects implemented

Governance Achievements

• Revised the rules of procedures for specialised committees under the Board to further improve the governance structure for climate change risks
• Formulated management systems such as the Management Measures for Land Reclamation in the Coal Industry
• Conducted international and domestic rating benchmarking and upgrading
• Proactively deployed measures to comply with international sustainability standards
• Maintained effective communication with stakeholders

Climate Goals & Targets

Environmental Challenges

• Climate change risks (physical and transition risks)
• Water scarcity
• Policy and legal risks related to carbon emissions
• Carbon market risk
• Risk of change in market demand for coal
• Low carbon technology risk
• Stakeholder concern risk

Mitigation Strategies

• Conduct climate risk assessment before selecting a new operating site; improve emergency plans to enhance disaster response capabilities; and add defence equipment and facilities for extreme weather.
• Strictly implement the disaster weather warning and prevention management system, and adhere to the 24-hour duty system during the flood season; formulate emergency plans for extreme precipitation to ensure safe production.
• Optimise energy-saving and environmental protection facilities and increase investment in extreme weather defence equipment and facilities; strengthen inspections in unusual weather to ensure operational safety.
• Advance the efficiency of water resource utilisation, improve and phase out water-intensive processes; publicise water-saving concept and raise water-saving awareness.
• Pay attention to the update of policies involving climate change and adjust strategic planning in a timely manner; strengthen the development of renewable energy; promote the optimisation and transformation of existing units; promote the application of carbon emission reduction technologies.
• Emphasis on carbon asset management and development; participate in green power trading, green certificate trading, carbon emission quotas trading and others.
• Accelerate the layout of new energy industry, expand heating and other markets, and promote the diversification of energy structure; reserve carbon assets and increase income through carbon trading and other businesses.
• Carry out research on carbon emission reduction and carbon sink technologies, promote R&D and innovation in energy-saving technologies, implement clean energy alternatives, and improve energy efficiency.
• Increase investment in environmental protection equipment and push forward the construction of new energy projects; actively communicate with stakeholders on response to climate change and safeguard the corporate image.

Supply Chain Management

Supplier Audits: 51 times/year

Responsible Procurement

• Commitment on Compliance with the Business Ethics
• Green Procurement Measures

Climate-Related Risks & Opportunities

Physical Risks

• Typhoon
• Extreme precipitation, flood
• Extreme heat and cold weather
• Water scarcity

Transition Risks

• Policy and legal risks
• Carbon market risk
• Risk of change in market demand
• Low carbon technology risk
• Stakeholder concern risk

Opportunities

• Resource efficiency
• Energy sources
• Products and services
• Market opportunities

Reporting Standards

Frameworks Used: HKEx ESG Reporting Guide, GRI Standards, TCFD

Certifications: ISO 14001, ISO 50001, ISO 45001

Third-party Assurance: KPMG Huazhen LLP

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)
• Goal 6 (Clean Water and Sanitation)
• Goal 15 (Life on Land)
• Goal 8 (Decent Work and Economic Growth)
• Goal 17 (Partnerships for the Goals)

Not disclosed

Sustainable Products & Innovation

• Green coal
• Clean coal
• Coal chemicals
• Power and thermal products

Awards & Recognition

• Grade A in the Evaluation of Annual Information Disclosure
• Corporate Governance Best Practice Case
• ESG Best Practice Case
• Selected for the “Central Enterprise ESG · Pioneer 100 Index”
• Outstanding Enterprise in Release of China Coal Industry Social Responsibility Report
• Pioneer 100 List of Chinese ESG Listed Companies
• TOP 50 List of Sustainable Industrial Companies
• Top 100 Best Practices for Listed Companies in China by WIND ESG
• China ESG Influencers Special Contribution Award for Energy Transition and Green Development
• Four awards including ESG Golden Bull Award Top 100
• Best Shareholder Value Creator in Hong Kong
• Best Listed Company ESG Practice Award
• Best Listed Company ESG Disclosure Award
• ESG Governance Practice Pioneer Case
• ESG Pioneer Practitioner
• Evergreen Awards – Sustainable Development Inclusive Award