Climate Change Data

Environmental Metrics

ESG Focus Areas

• Health and Safety
• Employment
• Exhaust Gas Emissions and Management
• Use of Resources
• The Environment and Natural Resources
• Labor Standards
• Development and Training
• Supply Chain Management
• Product Responsibility
• Anti-corruption
• Community Investment

Environmental Achievements

• Reduced GHG emissions from 72,869.30 tonnes to 57,185.91 tonnes of carbon dioxide equivalent. This decrease was partly due to updated fugitive emissions calculations and improvements in air pollutant emissions through desulfurization and denitrification technology.
• Implemented the “4R” principle (reduce, reuse, recycle, and replace) in the office to reduce air pollutants and GHG emissions.
• Implemented environmental protection system codes, including GB/T24001-2016/ISO14001:2015 and GB/T23331-2012, for internal environmental management.

Social Achievements

• Formulated equal opportunity policies to prevent discrimination in hiring.
• Implemented a fair and competitive compensation package, periodically reviewed and adjusted based on company performance and market rates.
• Developed a comprehensive human resources management policy covering various aspects of employment.
• Organized a conference to review business targets, talent training, and management improvements.
• Provided a one-time subsidy of RMB5,000 to college students admitted to first and second-tier universities and donated supplies to boarding schools.

Governance Achievements

• Established an internal integrity system and whistle-blowing procedures to address misconduct and dishonest behavior.
• Engaged a third-party agency to audit internal financial conditions annually.
• Complied with the Provisions on Prohibiting Corruption and Bribery of the Criminal Law of the PRC and legal regulations for listed companies in Hong Kong.

Climate Goals & Targets

Environmental Challenges

• Significant increase in total hazardous waste due to expanded reporting scope (including Fengxi Coal Mine).
• Significant increase in resource use due to expanded business operations.
• Threats of typhoons due to climate change.

Mitigation Strategies

• Continued promotion of waste reduction practices.
• Encouraging practices of appreciating and reducing resource use by cultivating environmental awareness among employees.
• Formulating environmental management practices to develop environmental management conducive to sustainable development.
• Formulating safeguards for safety of the Group and employees, including strict compliance with extreme weather guidelines.
• Formulating emergency guidelines and measures to minimize destruction from disasters.
• Regular review of climate change policies to ensure effectiveness.

Supply Chain Management

Supplier Audits: 825 cooperative suppliers (China and Indonesia)

Responsible Procurement

• Well-defined standardized procurement management procedures; obtaining quotations from at least 3 suppliers; cost and quality comparison of coal samples; incorporation of national safety guidelines (AG1011-AG1013, Coal Mine Safety Rules, Coal Industry Law of the PRC) as assessment criteria; supplier rating criteria for regular performance assessment.

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

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

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 52nd on the lists of “Guangdong Top 100 Circulation Businesses”; 318th on the lists of “Guangdong Top 500 Enterprises”

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Did not violate any laws and regulations relating to atmospheric and GHG emissions, discharges into water and land, and generation of hazardous and non-hazardous waste.
• Adopted desulfurization and denitrification technology for boilers to reduce emission of the sulphur oxides and nitrogen oxides.
• Fully complies with the requirements of environmental laws and regulations, including the Environmental Protection Law of the PRC and the Environmental Impact Assessment Law of the PRC to minimize the impacts brought by the Group operation.
• Recycled all discarded waste through professional recycling and disposal companies.

Social Achievements

• Established related recruitment and human resources procedures to ensure that recruitment and promotion decisions are made based on the qualification, experience and performance of applicants and employees, irrespective of such factors as gender, age, race, family status, religious belief and disability.
• Offers a fair and competitive compensation package that attracts and retains high-calibre talents.
• Organizes regular medical checkup for employees.
• Offers employees fringe benefits, such as housing provident fund and supplementary medical insurance.
• Established a risk assessment and occupational health management system.

Governance Achievements

• Established and implements an internal integrity system to strengthen the integrity of the employees in governance practices.
• Developed a sound risk management code and internal control code.
• Established whistle-blowing procedures to encourage employees, management team and directors to report any misconduct and dishonest behaviour.

Climate Goals & Targets

Environmental Challenges

• Increase in GHG emissions due to an increase in electricity consumption.
• Threat of extreme weather events which bring heavy rainfalls that may lead to severe flooding and landslide.
• Low recovery rate in two of the mining faces due to faults in the mining faces, resulting in high electricity consumption.

Mitigation Strategies

• Established measures to minimize impacts brought by natural disasters, including strict compliance with the extreme weathering guidelines announced by the government and adjustment of mining activities.
• Preference to local suppliers, centralised management of vehicle use, and interaction with business partners via modern communications tool to reduce other indirect carbon emissions.
• Upgraded mining equipment to improve energy efficiency.
• Implemented a series of occupational health and safety measures to protect the safety of employees.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Developed a set of supplier rating criteria to regularly assess the performance of new and existing suppliers.
• Priorities the procurement of environmentally preferable products and services when selecting suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (heavy rainfall, flooding, landslides)

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: The Stock Exchange of Hong Kong Limited's ESG Reporting Guide

Certifications: Null

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

• Occupational Health and Safety
• Product Safety
• Water Management
• Solid Waste and Recyclables
• Protection of Intellectual Property Rights

Environmental Achievements

• Achieved 92.6% NOx, 100% SOx, 99% PM reduction in air pollutants.
• Reduced Scope 1 Direct Emission by over 60%.

Social Achievements

• No work-related fatality for the past three Reporting Periods and zero lost days due to work injury during the Reporting Period.
• Offered 481,820 training hours to employees, with 80% of employees receiving training (182 average hours per employee).

Governance Achievements

• Established a sound governance structure adhering to the highest ethical standards; implemented anti-corruption policies and code of conduct; provided anti-corruption training to employees; established whistle-blowing procedures.

Climate Goals & Targets

Environmental Challenges

• High occupational health and safety risks in coal mining.
• Extreme weather events (heavy rainfall, flooding, landslides).
• Supply chain disruptions (not explicitly stated, but implied).

Mitigation Strategies

• Established risk assessment and occupational health management system; provided protective equipment; conducted regular safety inspections and maintenance; established emergency preparedness plans.
• Formulated protocols for employee safety and operational impact minimization during extreme weather; formulated emergency guidelines and measures to minimize impacts from natural disasters.
• Prioritized local suppliers to reduce environmental impacts from logistics; regularly assessed supplier performance based on environmental and product quality criteria.

Supply Chain Management

Supplier Audits: 893 suppliers engaged in 2021

Responsible Procurement

• Assessment of suppliers based on environmental and product quality criteria; prioritization of environmentally preferable products and services; annual monitoring of suppliers; disqualification of unsatisfactory vendors.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (heavy rainfall, flooding, landslides)

Transition Risks

• Not disclosed

Opportunities

• Enhance procurement procedures to enhance resource efficiency; enhance efficiency of transportation, production, and distribution.

Reporting Standards

Frameworks Used: HKEx ESG Reporting Guide

Certifications: GB/T24001 – 2016/ISO 14001: 2015 (EMS), GB/T23331 –2012 (Energy Management System)

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

• Management of Air Pollutants and Greenhouse Gas Emission
• Wastewater Management
• Waste Management
• Energy Conservation
• Water Conservation
• Quality Control of Production Material
• Customers’ Health and Safety
• Prevention of Bribery, Extortion, Fraud and Money Laundering
• Employment and Labour System
• Anti-discrimination, Equal and Diversified Employment Environment
• Occupational Safety and Health
• Employee Development and Training
• Labour Practices
• Environment and Social Risks of the Supply Chain
• Community Investment
• Needs and Interests of the Community

Environmental Achievements

• 8% NOx reduction achieved
• Gradual replacement of desulfurization and denitrification boilers with natural gas boilers in Fengxi Coal Mine and Xingtao Coal Mine

Social Achievements

• No work-related fatalities in the past three years
• 489,946 training hours offered to employees
• RMB4,248,000 charitable donations made

Governance Achievements

• Established a sound governance structure adhering to high ethical standards
• Established whistle-blowing procedures
• Regular anti-corruption training for employees and directors

Climate Goals & Targets

Environmental Challenges

• Shortage of natural gas supply in 2022
• Extreme weather events (heavy rainfall, flooding, landslides)
• Maintaining the integrity of employees and encouraging fair competition

Mitigation Strategies

• Replacement of some natural gas boilers with desulfurization and denitrification boilers (temporarily)
• Formulated protocols for employee safety and minimizing operational impact during extreme weather
• Established anti-corruption policies and code of conduct, regular anti-corruption training, and whistle-blowing procedures

Supply Chain Management

Supplier Audits: Annual monitoring and disqualification of unsatisfactory vendors; site inspections when necessary

Responsible Procurement

• Prioritizing local suppliers
• Prioritizing suppliers with less environmental impact, higher quality, and compliance

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (heavy rainfall, flooding, landslides)

Transition Risks

• Shortage of natural gas supply

Opportunities

• Enhance procurement procedures for resource efficiency
• Enhance efficiency of transportation, production, and distribution

Reporting Standards

Frameworks Used: HKEx ESG Reporting Guide

Certifications: GB/T24001 –2016/ISO 14001: 2015 (Environmental Management System), GB/T23331 –2012 (Energy Management System)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• China Energy Enterprise 500 (Ranked No. 359)
• China’s Preferred Employer of the Year 2022