Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Environment Management
• Staff Care
• Product Quality and Customer Service
• Supplier Management
• Social Responsibility

Environmental Achievements

• Achieved Four-Star Green Port certification for its bulk cargo terminal (first grain bulk cargo terminal in China to achieve this)
• Water consumption per ten thousand tons of throughput decreased by 9.7% compared to 2022
• Converted 2 fog cannons from oil to electric power, and 2 LNG sweeping trucks and 7 electric utility vehicles to electric power.
• Installed shore power facilities at all dry bulk berths of 50,000 tons and above (except for one berth scheduled for 2024)

Social Achievements

• Organized various employee training programs, with a total participation of 4,124 and a total investment of 845,000 yuan
• Implemented the “Spring Service” initiative to enhance customer service experience
• Organized voluntary blood donation and a One Day Charity event, raising RMB34,100 for underprivileged communities
• No employees left the company in 2023

Governance Achievements

• Established an ESG Management Leadership Group to oversee ESG initiatives
• Revised critical documents related to clean governance and combating corruption
• Implemented a compliance risk management system
• No concluded corruption lawsuits filed against the Company or its employees in 2023

Climate Goals & Targets

Environmental Challenges

• Slight increase in comprehensive energy consumption per ten thousand tons of throughput in 2023 compared to 2022, mainly due to increased energy consumption of process equipment
• Climate change impacts on coastal areas affecting business operations

Mitigation Strategies

• Implemented measures to cool down storage areas through storage transfer, resulting in a significant reduction in cargo clogging in silos
• Released policy documents on responding to extreme weather events, established an emergency leadership group, and conducted emergency drills

Supply Chain Management

Responsible Procurement

• Online entire bidding process
• Fair and open procurement with measures taken to protect against bribery

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather including typhoons
• Transportation delays impacting the quality of maritime transport

Transition Risks

• Industry accelerating the development of smart and green ports
• Widespread adoption of new energy-saving equipment

Opportunities

• Developing green and smart ports to enhance energy efficiency
• Constructing distributed photovoltaic power generation systems
• Using digital platforms

Reporting Standards

Frameworks Used: Appendix C2 Environmental, Social and Governance Reporting Guide of the Stock Exchange of Hong Kong Ltd. (HKEX)

Certifications: ISO 50001 Energy Management System, ISO 45001 Occupational Health and Safety Management System

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)
• Goal 8 (Decent work and economic growth)

The report details how various initiatives contribute to these goals through energy conservation, technological innovation, waste reduction, climate change response, and employee development.

Awards & Recognition

• The Harmonious Enterprise in Labor Relations in Rizhao City (2023–2025)
• The First Batch of Designated Ports for Imported Grain in China
• First Place in China Port Technology Development
• National Transportation and Logistics Reputable Enterprise
• National Transportation and Logistics Quality Management Outstanding Enterprise
• Leading Enterprise of Port and Shipping Safety Production of Rizhao City
• ESG Competitiveness – Customer First Enterprise Award in the 2022 Golden Bee CSR China Honor Roll
• Second prize in the Rizhao Port Group’s Mini Fire Station 119 competition