Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced ammonia emissions by 24,910 tonnes through wastewater treatment.
• Planted 11,183 trees, resulting in GHG emission savings of 257.21 tonnes.
• Solar panels generated an average of 5,000 kWh per day, saving up to 1,613.85 tonnes of GHG emissions annually.
• Treated over 2 billion tonnes of wastewater and recycled 8,323,750 tonnes of water.
• Reused 29,440,000 tonnes of reclaimed water.

Social Achievements

• Provided open and equal employment opportunities.
• Offered competitive remuneration, bonuses, and employee benefits.
• Conducted 78,172 hours of training for 4,077 employees (average 19.2 hours/employee).
• Invested 3.7 million RMB in R&D (over 100% increase from 2016).

Governance Achievements

• Established internal rules and whistle-blowing channels to ensure compliance.
• Periodic audits conducted at project companies.
• Corporate governance practices aligned with Singapore's Ministry of Finance Code and SEHK guidelines.

Climate Goals & Targets

Environmental Challenges

• Minimising environmental impacts and resource depletion.
• Managing risks of environmental incidents (power outages, leakages, etc.).
• Meeting emission standards for waste gas and air pollutants.

Mitigation Strategies

• Implementing environmental management systems (ISO 14001, ISO 9001, OHSAS 18001).
• Exploring technologies and methods to protect the environment.
• Developing emergency plans and policies.
• Improving risk prevention and control measures.
• Implementing initiatives to reduce resource consumption (e.g., reduced pumping pressure, improved pump motor maintenance).

Supply Chain Management

Responsible Procurement

• Suppliers and materials procured meet assessment standards.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix 27 to SEHK Rules), Sustainability Reporting Guide (SGX)

Certifications: ISO 14001, ISO 9001, OHSAS 18001

Environmental Metrics

ESG Focus Areas

• Wastewater treatment
• Water supply
• Sludge treatment
• Solid waste incineration
• Environmental protection
• Employee welfare
• Corporate governance
• Supply chain management
• Community engagement

Environmental Achievements

• Improved performance in environmental emissions compared to previous years, with better effluent quality and greater reductions in COD, BOD, and ammonia nitrogen in water treatment.
• Enhanced non-hazardous waste recycling and reuse, significantly increasing the amount of sludge and slag recycled and reused.
• Reduced CO2 emission by 1,528 tonnes through the use of solar panels and offset 530.47 tonnes of CO2 per year through tree planting.
• 82% of total regular sludge generated was reused by sludge treatment projects (significant increase from 26% in 2018).
• 77,335 tonnes of slag reused by waste incineration projects (2.6 times the reuse amount in 2018).

Social Achievements

• Received 10 service-related customer complaints, all resolved to customer satisfaction.
• 4,943 employees received approximately 54,166 hours of training (average 8.8 hours per employee).
• RMB 2.85 million spent on research and development activities.
• Strategic cooperation agreements signed with Baowu Environment and Canvest Environment, and East University of Heilongjiang.

Governance Achievements

• Established an ESG working group responsible for preparing sustainability reports and coordinating stakeholder engagement.
• Implemented internal Fraud and Whistle blowing Policy.
• Complied with relevant laws and regulations related to bribery, extortion, fraud, and money laundering. No legal cases regarding corrupt practices were brought against the Company or its employees.

Climate Goals & Targets

Environmental Challenges

• Meeting increasingly stringent government discharge standards for WWTPs.
• Managing potential risks of chlorine gas leaks in water supply projects.
• Reducing the amount of regular sludge produced.
• Managing hazardous waste generated during wastewater treatment and sludge treatment.

Mitigation Strategies

• Upgrading existing wastewater treatment projects.
• Installing alarm systems for leak detection and chlorine gas absorption devices.
• Adding chemicals to sludge dewatering process and engaging additional processes such as sludge desiccation.
• Collecting and handling hazardous waste by certified third-party waste handlers and recycling and reusing hazardous waste.

Supply Chain Management

Responsible Procurement

• Fair and transparent supplier evaluation system
• Material Supplier Review and Management System
• Project Company On-site Procurement Management System
• Supplier Management System

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Hong Kong Listing Rules, Singapore Exchange Securities Trading Limited Listing Manual, GRI Standards

Certifications: ISO 9001, OHSAS 18001

Environmental Metrics

ESG Focus Areas

• Emissions, discharges and waste management
• Resource efficiency
• Clean water and sanitation
• Environmental impact management
• Occupational health and safety
• Labour standards
• Service quality and standards
• Anti-corruption
• Compliance management

Environmental Achievements

• Reduced the concentration of COD and ammonia nitrogen in wastewater discharged by 4.60% and 16.99%, respectively, compared to 2019.
• Used 1,713,670 kWh of electricity produced from solar panels, reducing CO2 emission by 1,436.06 tonnes compared to coal-fired power generation.
• Planted 26,733 trees at project sites, offsetting 614.86 tonnes of CO2 per year.
• Recycled and reused 32,820,187 tonnes of water, a close to 9% increase from 2019.
• Reused 79,583 tonnes of slag, a 3% increase from 2019.

Social Achievements

• Number of lost days due to work injury significantly decreased in 2020.
• Maintained zero cases of forced labour and child labour in 2020.
• Received 9 service-related customer complaints, all resolved to customer satisfaction.
• Invested approximately RMB 1.50 million in R&D.
• Invested over RMB 0.66 million and 1,511.5 hours of volunteer services in community engagement activities.

Governance Achievements

• Established a comprehensive whistleblowing policy.
• Organized anti-corruption training for staff and management personnel.
• No legal cases regarding corrupt practices brought against the Company or its employees during the reporting period.

Climate Goals & Targets

Environmental Challenges

• Seasonal fluctuations in water supply in some water supply projects.
• Safety concerns regarding single pipeline water transmission in some water supply projects.
• Two incidents of work-related fatality in 2020.
• COVID-19 pandemic and flooding disaster in Southern China.

Mitigation Strategies

• Developed mechanisms to manage seasonal water supply fluctuations and single pipeline transmission risks.
• Implemented preventive measures after work-related fatality incidents.
• Established comprehensive response mechanisms to protect employees and support communities during the pandemic and flood.
• Provided pandemic prevention supplies and support to local communities.

Supply Chain Management

Responsible Procurement

• Background checks for supplier qualifications.
• On-site assessments of supplier production sites.
• Inclusion of environmental and social responsibilities in contracts.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (flooding)

Opportunities

• Further developing the waste incineration power generation business to reduce carbon emissions.

Reporting Standards

Frameworks Used: Hong Kong Listing Rules, Singapore Exchange Listing Manual, GRI Standards

Awards & Recognition

• North BU’s “Water for All” volunteer service team elected as the “Best Volunteer Service Organisation” in 2020.

Environmental Metrics

ESG Focus Areas

• Emissions, discharges, and waste management
• Resource efficiency
• Clean water and sanitation
• Environmental impact management
• Climate change risk identification and management
• Occupational health and safety
• Labour standards
• Service quality and standards
• Anti-corruption
• Compliance management
• Risk management

Environmental Achievements

• Total GHG emissions reduced by 2.8% compared to 2020; GHG emissions intensity decreased by 16.4% year-on-year.
• Used 1,640,837 kWh of solar electricity, reducing CO2 emission by 1,365.2 tonnes compared to coal-fired power generation.
• Planted 31,996 trees, offsetting 735.9 tonnes of CO2 emission per year.
• Upgraded standards of 6 projects with a designed capacity of 185,000 tonnes/day.
• 7 projects meet the standard of Quasi Grade IV and 90% of wastewater treatment projects reach superior Class I Standard A.

Social Achievements

• Achieved annual workplace safety target of zero work-related fatality in 2021.
• Provided about 23,199 hours of occupational health and safety-related training for 6,100 employees.
• Maintained zero cases of forced labour and child labour.
• 100% of Directors completed anti-corruption training; 5,974 employees completed anti-corruption training.
• Organised various sports games and recreational activities to improve employee well-being.

Governance Achievements

• Established a sound corporate governance system in line with SGX Listing Manual and Code of Corporate Governance 2018.
• Organised anti-corruption training for all Directors.
• Integrated ESG-related responsibilities into the overall authorities of the Board and the RIMC.
• Conducted internal control audits on eight projects for its subsidiaries.
• No reported incident of non-compliance with laws and regulations related to bribery, extortion, fraud, and money laundering.

Climate Goals & Targets

Environmental Challenges

• Frequent extreme weather events and recurrent COVID-19 outbreaks.
• Climate change risks (physical risks like floods, typhoons, extreme cold; transition risks like regulatory changes, market shifts).
• Potential impacts of climate change on business activities (damage to facilities, increased costs, supply chain disruptions).

Mitigation Strategies

• Formulated risk prevention and mitigation measures for identified material ESG risks.
• Established strict management procedures for acute climate risks (emergency response plans, adequate supplies).
• Implemented energy-saving measures, developed renewable energy, and planted trees to reduce GHG emissions.
• Implemented comprehensive anti-corruption policy and anti-corruption training.
• Developed short-term and long-term policies to support employees during the COVID-19 pandemic.

Supply Chain Management

Supplier Audits: Annual assessment and update of supplier list; background checks, field assessments.

Responsible Procurement

• Prioritising green and sustainable products.
• Contracts with qualified suppliers include provisions about their environmental and social responsibilities.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (floods, typhoons, extreme cold)
• Sea level rise

Transition Risks

• Regulatory changes on GHG emissions
• Increased requirements for climate-related disclosure
• Increased expenditures for decarbonisation technologies
• Stricter environmental policies raising chemical prices

Reporting Standards

Frameworks Used: Hong Kong Listing Rules, SGX Listing Manual, GRI Standards, AA1000AS v3, TCFD

Certifications: ISO 9001 (East BU and South BU), GB/T45001 (ISO 45001) (East BU and South BU)

Third-party Assurance: CECEP (HK) Advisory Company Limited

Environmental Metrics

ESG Focus Areas

• Emissions, discharges, and waste management
• Resource efficiency
• Clean water and sanitation
• Addressing climate change
• Environmental impact management
• Occupational health and safety
• Labour standards
• Service quality and standards
• Anti-corruption
• Compliance operation
• Corporate governance

Environmental Achievements

• Used 1,953,656 kWh of solar electricity (19.06% YoY increase)
• Planted 32,269 trees, offsetting 742.19 tonnes of CO2 emissions
• Reduced hazardous waste discharge intensity by 2.14% compared to 2021
• Reclaimed and reused 27,198,069 tonnes of water (8.72% YoY decrease in intensity)
• Baoshan Center increased power generation efficiency by over 29%, reducing over 5,000 tonnes of carbon emissions per year

Social Achievements

• Provided 40,088 hours of health and safety training to 5,122 employees (zero workplace safety accidents)
• Maintained zero cases of child labour or forced labour
• Achieved 100% resolution rate for 8 whistle-blower complaints
• Provided sustainability training for all Directors
• 100% of customer complaints were settled

Governance Achievements

• Formulated a Board Diversity Policy with targets for gender diversity by 2024
• Conducted internal control audits on 9 projects
• Established a three-level governance structure for ESG: Board - Risk and Investment Management Committee - ESG Working Group
• Conducted an internal review of the Sustainability Report in accordance with IIA standards
• Zero concluded legal cases regarding corrupt practices

Climate Goals & Targets

Environmental Challenges

• Extreme weather events damaging facilities and causing business interruption
• Rising sea levels causing damage to facilities
• Higher average temperatures increasing odour impacts from wastewater treatment plants
• Regulatory restrictions on GHG emissions increasing operating costs
• Increased investment needed in decarbonisation technologies
• Stricter environmental policies increasing the price of water treatment chemicals
• Supply chain disruptions (implied)

Mitigation Strategies

• Considering climate hazards when selecting project locations
• Creating contingency plans for extreme weather events
• Improving disaster preparedness training for employees
• Insuring relevant assets
• Regularly monitoring water quality and odour
• Improving intelligent monitoring platforms
• Improving the occupational health system
• Monitoring changes in climate-related legislation
• Conducting research to reduce GHG emissions
• Exploring energy conservation measures
• Researching low-carbon technologies
• Raising standards for supplier evaluation
• Moving toward gradual green procurement
• Integrating suppliers’ environmental performance into the selection process
• Developing and implementing internal policies to ensure compliance with national and local laws and regulations

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Site visits to monitor supplier operations
• Supplier audits addressing quality, safety, and compliance
• Inclusion of environmental and social responsibility requirements in supplier contracts
• Development of a multi-category supplier directory
• Establishment of a supply chain information management system
• Prioritizing suppliers with better environmental performance
• Favoring green, safe, and sustainable products and services

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Rising sea levels
• Higher average temperatures

Transition Risks

• Regulatory restrictions on GHG emissions
• Increased investment needed in decarbonisation technologies
• Stricter environmental policies increasing chemical prices

Opportunities

• Development of energy-efficient products
• Waste incineration producing fewer carbon emissions than coal
• Opportunities in carbon emissions trading

Reporting Standards

Frameworks Used: Hong Kong Listing Rules, Singapore Exchange Listing Manual, GRI Standards, TCFD

Certifications: ISO 9001 (some business units), ISO 45001 (some business units)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Precision aeration system
• Precision carbon source dosing system

Awards & Recognition

• Huishan Economic Development Zone WWTP Project awarded Excellent Wastewater Treatment Plant of the Year
• Northeast BU Youth Volunteer Service Team awarded Outstanding Youth Volunteer Service Organisation

Environmental Metrics

ESG Focus Areas

• Environmental impact management
• Clean water and sanitation
• Emissions, discharges and waste management
• Addressing climate change
• Occupational health and safety
• Labour standards
• Employee compensation and benefits
• Service quality and standards
• Anti-corruption
• Compliance management
• Corporate governance

Environmental Achievements

• 99.9% water qualification rate
• 9,494,977.6 kWh of clean energy (solar) used
• 785.13 tonnes of CO2 emissions offset through tree planting
• Establishment of environmental management system aligned with ISO14001
• Nearly 90% of wastewater treatment projects discharge effluent that reaches superior Class I Standard A

Social Achievements

• Zero work-related fatalities and a work-related injury rate of 0.0324
• Zero cases of child labor or forced labor
• 100% resolution rate of customer complaints
• 91.06 points overall employee satisfaction score
• Provincial Model Workers' Home award for Mudanjiang Longjiang Environmental Protection Water Service Co., Ltd.

Governance Achievements

• Establishment of a three-level governance structure for ESG: Board - Risk and Investment Management Committee - ESG Working Group
• 100% of Directors and employees participated in anti-corruption training
• Zero concluded legal cases regarding corrupt practices

Climate Goals & Targets

Environmental Challenges

• Extreme weather events (typhoons, floods) causing damage to facilities and business interruption
• Water scarcity and pollution
• Stricter GHG emission requirements
• Rising chemical prices
• Supply chain risks (safety, corruption)

Mitigation Strategies

• Contingency plans and emergency drills
• Advanced water treatment technology and recyclable water systems
• Investment in decarbonization technologies and clean energy
• Green procurement and alternative sourcing strategies
• Supplier audits, conflict-of-interest avoidance systems, and integrity agreements

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Fair, open, and transparent bidding process
• Supplier assessments (product quality, professional capabilities, performance)
• Environmental and social responsibility requirements in supplier contracts
• Preference for suppliers with ISO 14001 and ISO 45001 certifications
• Green procurement practices

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather (typhoons, storms, floods) damaging facilities
• Impacts on water supply and quality
• Increased health and safety risks for employees

Transition Risks

• Regulatory restrictions on GHG emissions
• Stricter climate-related disclosure requirements
• Increased operating costs due to rising chemical prices and decarbonization investments

Opportunities

• Development of energy-efficient products and services
• Investment in clean energy and energy-saving technologies
• Waste incineration projects eligible for carbon emissions trading

Reporting Standards

Frameworks Used: GRI Standards, TCFD

Certifications: ISO 9001, ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 6: Clean Water and Sanitation
• Goal 7: Affordable and Clean Energy
• Goal 9: Industry, Innovation and Infrastructure
• Goal 13: Climate Action

Not disclosed

Sustainable Products & Innovation

• Smart water systems
• Bio-microbial agent for improved pollutant treatment efficiency
• Precision aeration and dosing systems

Awards & Recognition

• Certificate of Evaluation of Technological Achievements in the Construction Industry
• Second Prize for Technological Progress in Shanghai
• Provincial Model Workers' Home award