Hengyi Petrochemical Co.,Ltd.
About this report
Official Website：
www.hengyishihua.com / CNInfo：
www.cninfo.com.cn
This report covers the period from January 1, 2023 to December 31, 2023. Some content may be appropriately extended beyond thestated period according to disclosure needs.Reporting period
For better presentation and readability, Hengyi Petrochemical Co.,Ltd. is also referred to as "Hengyi", the "Company" and "We" in thisreport.Abbreviations
The information and data cited in this report come from the official documents, statistical and financial reports of the Company.The reporting materials are provided by Hengyi employees and partners. It's only for disclosing Hengyi's sustainability managementprogress instead of commercial use. The financial data in this report is subject to the annual report data. Other data is from internalstatistics. The currency used in this report is RMB unless otherwise noted.
Data Sources
The Board of Directors of the Company approved this report on April 19, 2024. This report is available in both Simplified Chinese andEnglish versions. For any inconsistency of the content, the simplified Chinese version shall prevail. You can visit our website todownload this report.Report Access
This is the fifth independent report released by Hengyi Petrochemical Co.,Ltd.. In response to market changes and new regulatoryrequirements, the report name would be changed from Social Responsibility Report to Environmental, Social, and Governance Reportsince 2023. This report discloses relevant information of the Company in the environmental, social, and governance aspects in 2023 torespond to the concerns and expectations of stakeholders.Organizational ScopeThe main entity of this report is Hengyi Petrochemical Co., Ltd., including its branches, subsidiaries, and affiliates.
Preparation BasisThis report is prepared in accordance with the requirements of Chapter 8 "Social Responsibility" of the Guidelines No. 1 for Self-Regulation of Listed Companies-Standardized Operation of Companies Listed on the Main Board of Shenzhen Stock Exchange andwith reference to the GRI Sustainability Reporting Standards( GRI Standards) issued by Global Reporting Initiative (GRI), as well asthe United Nations Global Compact, ISO 26000: Guidance on Social Responsibility (2010) issued by International Organization forStandardization and the Guidelines on Corporate Social Responsibility Reporting for Chinese Enterprises (CASS-CSR5.0) issued by theChinese Academy of Social Sciences.
About this reportChairman’s StatementAbout HengyiHonorsESG Highlights in 2023
Creating Mutual Trust andValue with ShareholdersCorporate GovernanceESG Governance
Earning Customer Trustwith Quality
Safety ResponsibilityProduct QualitySuperior Services
Fostering Stable and Win-winRelationships with Partners
Responsible Supplier Chain R&D and InnovationIndustry Exchanges and Cooperation
Growing Together with EmployeesEmployees' Rights and InterestsOccupational Health and SafetyUnblocked Growth Channel Warm care for employees
Building Harmonious CommunityWith A Shared Future
Rural VitalizationCommunity Charity Contribution to the BRI
ProspectsAppendix
ESG Key PerformanceReport Content IndexesFeedback Sheet
CONTENTS
Striving for Harmonywith the Environment byGreen Development
Climate Change ResponseEnvironmental ManagementWater Resource UtilizationPollutant Emission ReductionEcological Protection
Chairman’sStatement
2023 was the first year for kicking off our efforts to put the guiding principles of the 20th CPC National Congress into action. It was alsopivotal to implement the 14th Five-Year Plan. Amid the complex international climate and domestic economic recovery pressures, 2023was a mix of opportunities and challenges for Hengyi. Bolstered by the collective tenacity and unremitting endeavor of our workforce,Hengyi excelled despite external pressures.| In 2023 | Deeply rooted in our primary business, Hengyi aligned with the national directives for high-quality development and carbonpeaking and carbon neutrality goals, prioritizing the importance of environmental protection in our operations. Embedding carbonpeaking across every link and facet of our development, we executed seven carbon peaking actions: green and low-carbon energytransition action, energy-saving, carbon reduction and efficiency increase action, green and low-carbon action in the production field,green and low-carbon action in the transport field, carbon footprint reduction action through the circular economy, green and low-carbon action through technological innovation, and green and low-carbon action for the public, contributing to the global actionagainst climate change. By advancing green technological innovations, developing clean energy, saving energy, and improving energyefficiency, we explored our potential to reduce carbon emissions and contribute to building a more beautiful China.| In 2023 | Hengyi further enhanced its technological innovation capacity. Committed to independent R&D, we expedited thecommercialization and application of technological achievements and nurtured new quality productive forces, propelling the transitionfrom an industrial Hengyi to a technological Hengyi. The production capacity of our eco-friendly polyester product, Eticont, reached800,000 tons, heralding a new epoch in the green development of polyester fibers.| In 2023 | Hengyi continued to perform social responsibilities and commitments. Championing the concept of “advancing developmentwith joint efforts and shared joy”, we hosted the fifth Corporate Culture Festival and launched the fifth round of our Employee StockOwnership Plan (ESOP). The plan benefited over 10,000 participants in total. Actively involved in charitable activities, we donated RMB30 million to the Red Cross Society of China Wuzhong Branch, Ningxia, earning us the inaugural “Hangzhou Charity Award”.Looking ahead, Hengyi will continue to practice the national strategic goals of carbon peaking and carbon neutrality. While pursuinggreen innovation guided by green manufacturing and circular economy, we will integrate into the new development paradigm of dualcirculation more proactively, embarking on a new journey under Chinese modernization!
About Hengyi
Hengyi Petrochemical (000703.SZ) aspires to become a world-class and domestic leading petrochemical industrial group. Throughresource sharing and industrial coordination, the Company bolsters overall competitiveness. Currently, we have formed a multi-faceted“petrochemical+” industrial layout, with the petrochemical industry chain driven by “polyester + nylon” serving as the core business,petrochemical finance and trade as the growth business, and big data of chemical fiber industry chain and intelligent manufacturingas the emerging business.For years, our overall competitiveness has maintained a leading position in the industry. Our main products include purifiedterephthalic acid (PTA), caprolactam (CPL), polyethylene terephthalate (PET) chips, and bottle flakes, as well as a range ofdifferentiated products like polyester pre-oriented yarn (POY), polyester fully drawn yarn (FDY), polyester drawn textured yarn (DTY)and short fiber. Polyester products, integral to both the economy and everyday life, are extensively used in textiles, clothing, homefurnishings, and industrial applications. We lead the segment of differentiated and high value-added products with our antimony-free,eco-friendly Eticont polyester chips and fibers, cationic polyester chips and fibers, ultra-high elasticity fibers, rabbit fur-like fibers,special-shaped silk, color silk, masterbatch silk, Hengyi bamboo silk, Hengyi dragon silk, and Hengyi colored silk.
Business Layout
Honors
ESG Highlights in 2023
1.One of Hengyi’s projects was selected in the Top 100 Best Practices over the Past Decade of the Belt and Road
Cooperation by Chinese Listed Companies
3.Hengyi got Grade-A in information disclosure assessment by Shenzhen Stock Exchange for two consecutive years
4.Hengyi won the 2023 Product Development Contribution Award by China National Textile and Apparel Council (CNTAC)
5.Hengyi received the Carbon Neutral Top 50 of the ESG Golden Bull Awards
6.Hengyi was listed among the billion-dollar club rankings of global chemical companies
7.Our “Green Manufacturing of TiO2 Matting Agent for Nylon and Complete Set of Technologies for Industrialization of Fully
Matte Nylon” were honored the First Prize of the 2023 CNTAC Science and Technology Progress Award .
8.Chairman Qiu Yibo was bestowed as “New Prominent Hangzhou Entrepreneur” at the World Hangzhou Entrepreneurs
Convention
2.?Hengyi was awarded the “2023 Excellent Practice Case of the Board Office of Listed Companies” by China Association forPublic Companies
investor exchange activities in various forms, suchas teleconferences, onsite investor surveys, brokeragestrategy meetings, and performance briefings.
?During the reporting period, the Company implemented the third and fourth phases of the share repurchase program. The thirdphase was completed, with a total of
150,813,800
shares repurchased, representing
4.11%
of the Company's totalshare capital, and the total amount paid has reached approximately RMB
1.112
billion. As of March 31, 2024, the cumulativenumber of shares repurchased under the fourth phase has amounted to
64,575,500
shares, accounting for
1.76%
ofthe Company’s total share capital or around RMB
430million paid to employees. The Company has repurchased shares worthapproximately RMB
2.675
billion, demonstrating the Company's confidence in its value and future development.
RMB
521.4955
million invested in environmentalprotection
?RMB
139.8686
million invested in safety
Approximately RMB
4.437
billion for
366.84
million shares purchased in five rounds of employee stockownership plan following this year’s fifth round.
Since its inception, Hengyi has endured storms without changing its original intention, forged through vicissitudes and flourished in itsprime. Hengyi has developed a unique "54354" corporate culture mechanism, focusing on five sub-cultures: shared creation, dedicationto excellence, pioneering spirit, stability and security, and mutual benefits. We adhere to four principles of “the realization of historicalexperience, the collectivization of individual knowledge, the humanization of rigid institutions, and the tactical transformation ofstrategic blueprints”, aiming for harmony between culture and strategy, business growth and employee development, and culturaladvantage and competitiveness. By building five driver systems of senior leadership, employee demand, full participation, socialinteraction, and institutional security, Hengyi aspires to be a century-old enterprise deeply respected, well received, trusted, and lovedby society, customers, shareholders, and employees.
Hengyi Culture
Persistence rewards the diligent, nobleaspirations reach farPhilosophy
Build a century-old, evergreen foundationand stand among the world's renownedenterprisesMission
Never stop moving forward, create brilliance
Spirit
Become one of the world's top-tierpetrochemical industry groups
Vision
Pragmatism, responsibility,
surpassing, and sharing.Core values
Sound governance is an important guarantee for promoting efficient operation and sustainable androbust operation of an enterprise. Staying true to the modern corporate governance philosophy ofhonesty, trustworthiness and openness, Hengyi promotes the overall improvement of corporategovernance and internal control management and continues to create value for shareholders andthe whole society.
Corporate Governance ESG Governance
v
2023 Actions and Responses
Grade- A in information disclosure assessmentby Shenzhen Stock Exchange (SZSE) for twoconsecutive years
“A”
shareholders meetings
meetings of the Board ofDirectors
periodic reports issued
investor communicationactivities conducted
announcements on theofficial websites of HengYiand SZSE disclosed, and
meetings of the Boardof Supervisors held
and Value with ShareholdersCreating Mutual Trust
Corporate Governance
The Company is committed to building a high-quality corporate governance structure withtransparent rights and responsibilities and clear division of labor. We strictly comply withthe requirements of laws and regulations and relevant regulatory documents such astheCompany Law, the Securities Law and the Shenzhen Stock Exchange Listing Rules, etc.,and follow up on updates of laws and regulations in a timely manner. We have revised theArticles of Association, the Independent Directors Work System and other relevant corporatesystems to continuously strengthen our governance standards as a listed company. Fortwo consecutive years, the Company has been awarded Grade "A" in information disclosureassessment by the Shenzhen Stock Exchange, and the information disclosure quality,standardized operation and investor relations management have been highly recognized.The Company has established an internal governance structure comprising theShareholders’ Meeting, the Board of Directors, the Board of Supervisors and the seniormanagement. The Board has four committees: Strategy and Investment Committee,Compensation Assessment and Nomination Committee, Risk Control Committee and AuditCommittee. Each of these specialized committees conducts their duties and responsibilitiesto ensure efficient, scientific and standardized operation.
Governancestructure
Strategy&Investment Committee
Board of SupervisorsBoD Office
Shareholders MeetingBoard of DirectorsSenior ManagementCompensation CommitteeRisk Control Committee
Audit Committee
HengyiPetrochemicalCo., Ltd.
Audit&Legal
Production Management
Investment
Human ResourceInformation&Data
Office
Finance
Capital ManagementSafety&Environment
The Shareholders’ Meeting is the highest authority of the Company. The Company convenesand holds the meetings in strict accordance with the provisions and requirements of theRules for Shareholders’ Meeting of Listed Companies, the Articles of Association andthe Shareholders' Meeting Rules,and treats all shareholders fairly. The Shareholders’Meeting conducts online voting and discloses the voting of minority shareholders in theannouncement to actively safeguard the legitimate rights and interests of all shareholders,especially minority shareholders, in obtaining information, participating in decision-making,and supervising of major matters.
shareholders’ meetingsheld in 2023Shareholders’Meeting
The Board of Directors(the Board), as a permanent decision-making body, is responsiblefor formulating overall strategic plans, setting long-term performance and managementobjectives, evaluating business operation performance and monitoring managementperformance, and scrutinizing risks, etc. It is responsible to the Shareholders' Meeting. Thedirectors are elected by the Shareholders’ Meeting for a term of three years and are eligiblefor re-election. In 2023, the 11th Board of Directors completed its term, and the Companyelected the 12th Board of Directors by the procedures, to further improve the corporategovernance structure. After the deliberation of the 12th session of the Board of Directors,Qiu Yibo was elected as the Chairman of the Board, and the members of the specializedcommittees of the Board were appointed. The Board had a total of 9 directors, including 3independent directors, accounting for 33.33%, and 1 female director, accounting for 11.11% ofall Board members.The members all come from different professional fields, with good cultural and educationalbackgrounds and rich professional experience. The Board gives full play to their businesscapabilities and financial experience, and constantly improves the system of specializedcommittees, so as to enhance the independence and professionalism of the Board, andto vigorously safeguard the legitimate rights and interests of the Company and minorityshareholders.
Directors, the Board andspecialized committees
meetings of the Board ofDirectors held in 2023
The Board of Supervisors exercises its supervisory duties over the Company's businessactivities in accordance with the laws and regulations, and safeguards the legitimate rightsand interests of the Company, shareholders and creditors according to the Company Law,the Articles of Association and other relevant regulations. In 2023, the term of office of the11th Board of Supervisors expired, and the Company carried out the new round of election inaccordance with the procedures. The 12th Board of Supervisors consists of three Supervisors,including one female Supervisor.
Board of Supervisors
meetings of the Board ofSupervisors held in 2023
The Senior Management, as the executive body of the Company, is appointed by and reportingto the Board. After a general election, the Management currently consists of 6 seniorexecutives, involving experts in different fields such as petrochemicals, material science,production, finance, legal affairs, marketing, capital operation, etc., with professionalcapabilities and rich management experience.
Senior Management
Risk and internalcontrol management
The Company adheres to corporate governance in accordance with the law, establishes andimproves corporate legal risk prevention mechanisms and integrates integrity and complianceguidelines into all areas and aspects of production and operation. While improving the internalcontrol management system, we redouble efforts in auditing and continue to strengthencompliance management.The Company has established the management mechanism to support strategy implementationand risk control, and refined risk management capabilities. By formulating theDevelopmentStrategic Planning Management System, Rules on Audit Committee Work and Rules on RiskControl Committee Work, which guide the Board and the Audit Committee to fulfill theirrisk decision-making and supervision responsibilities and prevent risks in formulating andimplementing the strategic plans for development.The Internal Control System and the InternalAudit Systemare adopted to strengthen the internal management and supervision, aiming toenhance our capacities on business management and risk prevention.By identifying potential risks, evaluating risks, and formulating risk management strategiesfor major risks, the Company has implemented standardized risk prevention and controlrequirements across our corporate management and business processes, so as to ensure thatrisks are contained within the scope of risk tolerance, and to provide a strong guarantee for thesound operation.
Compliantoperation
The risk assessment processincludes risk identification, riskanalysis, risk assessment and riskresponse to ensure the accuracyand comprehensiveness of riskassessment.All kinds of risks will be registeredand evaluated based on resultsfrom risk assessment. Theprioritized risks and those that maylead to significant impacts will beidentified.
Risk Assessment
The Company regularly conductsinternal control self-evaluationprograms and identifies key risksof actual business processesin line with theGuidelines forCorporate Internal Controland theinternal control manual, whichcovers all departments and formsa business process risk controlmatrix. Through the scientific riskassessment mechanism, potentialrisks are identified and forewarnedin a timely manner, with effectivemeasures to control and defuse.
Internal Control
The Company regularly carries outlectures on risk prevention andcontrol, and hires external legallecturers to conduct compliancetraining and education activitiesfor employees to improve theirrisk prevention ability and ensurecompliance in their daily work.
Risk Training
Focusing on the Company's development, the audit activities aim to "prevent risks, control costs, strengthen management,and promote standardization." Targeting key business areas, such as finance, logistics, procurement, sales, production andraw material supply and trade, a diversified audit model of "routine, specialized and continuous supervision + spot checks" isimplemented for audit oversight. Such mode ensures that the Company can fully fulfill our internal audit responsibilities, ensuringthe effective improvement of our risk management level.
Audits in the Company:
The Company strictly abides by the Anti-Monopoly Law of the PRC, theAnti-Unfair CompetitionLaw of the PRCand the relevant laws and regulations of the countries where the overseas projectsare located. We adhere to the code of business conduct and ethics, consciously maintain thefairness and equity of the market, and oppose any form of commercial bribery, money laundering,monopolization and unfair competition.The Company has formulated theCode of Business Conduct and Ethics, the Anti-fraud Guidelines,the Employee Integrity and Ethical Conduct Regulationsand other institutional documents,and set up the anti-fraud working group led by the Chairman, who is responsible for authorizinginvestigations of reported matters and making decisions on the handling of certain employees’fraudulent acts. In order to continuously improve the anti-corruption prevention and controlsystem and reduce corruption incidents, the Company has set up an independent audit and legaldepartment to carry out anti-corruption efforts guided by the Audit Committee.
BusinessethicsAnti-corruption
Policy
Goal
Code of BusinessConduct and Ethics
Committed to the principle of "openness, fairness and impartiality", the Company requires our partners to strictly comply with relevantdomestic and international laws and regulations, as well as ourSupplier Management System, Anti-commercial Bribery and IntegrityAgreement,etc. We have zero tolerance for any form of corruption and bribery, regularly publicize our integrity system through phonecalls, WeChat and emails. Meanwhile, we fully respect and protect intellectual property rights and business secrets to establish fair,equitable and trustworthy cooperation.
Promoting all employees to abideby integrity and professionalethics,ensuring compliance withlegal and ethical standards.
The Company has established a sound management mechanism which clarifies the whistleblowerprotection and ensures timely and effective handling of reports and complaints. We haveestablished a smooth channel for complaint reporting, and all reporting channels are open andaccessible through system announcements, the Company’s official website, our WeChat officialaccount, customer meetings, bidding processes and the internal integrity education and disciplinarycase notifications on a day-to-day basis.We promise to protect the privacy and information security of every whistleblower, withoutdisclosing their identity. The Company will treat the whistleblower materials as confidential, strictlysafeguarding any information including their name, employer, home address, and their reportingcontent. Any form of retaliation against individuals who assist in whistleblower investigations isstrictly prohibited. Once discovered, appropriate measures will be taken according to relevantregulations, and any criminal activities will be transferred to the judicial authorities.
WhistleblowerProtection
Anti-FraudGuidelines
Employee Integrity andEthical Conduct RegulationsStrengthening internal controls,preventing fraud risks, establishinganti-fraud mechanisms, andensuring the company's healthand sustainable development.
Promoting all employees to abideby the law, maintain integrityand self-discipline,and adhere toprofessional ethics, preventingcorruption from occurring.
Anti-fraud Ofcereporting channels:
Tel: 0571-83581890 (ext: 1890)E-mail: fwb@hengyi.comFax: 0571-82797666
Information disclosure is an important window for investors and the public to obtaininformation of listed companies, and is also a basic requirement for maintaining uprightand transparent communication. The Company effectively protects investors' right to knowand participate, establishes a multi-channel and all-round communication platform and acommunication mechanism for major events, and regularly releases reports to guaranteethe accurate and standardized disclosure of relevant information.
The Company carries out investor communication activities in various forms such as online teleconferences, on-site investor surveys,brokerage strategy meetings, and performance briefings, etc., and has designated personnel responsible for smooth mailboxes andtelephones, and also actively responds to investor questions by utilizing the investor interactive platform of SZSE. In 2023, we held 2performance briefings at which investors' nearly 200 questions were answered, and responded to 87 questions on the SZSE’s investorinteractive platform timely and effectively, while actively responding to investor concerns via investor hotlines and other forms toconvey the Company's value to investors.
InvestorRelations
Investor Hotline
WeChat ofcial
account
SZSE interactive
platformOfcial website'sinvestor relations
section
Communication Channels
The Company held performance briengs
The Company held online performance briefing events through online platforms, boosting investors’ trust and recognitionby comprehensively and multi-dimensionally elaborating on our business operation, development highlights, strategicplanning, and social responsibility etc.
Case
and 4 regular reportswere issued.
In 2023, 15 investor communicationactivities were carried out15221
announcements were disclosed on theofficial websites of HengYi and SZSE
Honors
Excellent Case of Serving the Real Economy in the Bond Market, issued by Shenzhen Stock Exchange2023 Excellent Practice Case of the Board Office of Listed Companies , Top 100 Best Practices over the Past Decade of theBelt and Road Cooperation by Chinese Listed Companies and 4A secretary in the evaluation of secretaries' performanceissued by China Association for Public Companies
?Carbon Neutral Top 50 of the ESG Golden Bull Awards for by China Securities Journal.?Among "billion-dollar club rankings of global chemical companies" released by the US Chemical Weekly
P5W performance
brieng
?Four integration and fourenhancements
?Four showcases and four competitions
?Six Party building projects
The Company integrates Party building withproduction and management, corporateculture, human resources, and socialresponsibility to enhance developmentability, soft power, competitiveness, andinfluence, respectively.
Conducting campaigns for showcasing ouridentify, responsibility, role, and performance andcompeting in learning, skills, cooperation, anddedication, the Company fosters a conduciveclimate that facilitates work through study,elevates qualities through skill competitions,enhances synergy through teamwork, andnurtures pioneers through job dedication.
The Company implements projects for foundationreinforcement, Party-mass co-building, qualityenhancement, advice presentation, familyculture, and social contribution.
To improve the development of Party organizations, the Company has formulated the 2024-2026 Development Plan for Party Members, which defines Party building goals and mandatesto create Party branches in apartments, communities, and workshops faster. We enhanceteam building for Party secretaries, staff responsible for Party affairs, and Party members.We also implement annual assessments for Party secretaries, quality enhancements forstaff responsible for Party affairs, and thorough audits for Party members, with a focus onbolstering the management of migrant Party members.
Strengthening theconstruction of primary-level Party organizations
Deepening the situationeducation campaign forParty members
Enriching corporateculture activities
The Company launches the all-staff situation education campaign for “Bolstering Confidence,Morale, Initiative, and Development” through Party organizations. Leveraging activitiessuch as “Three Meetings and One Lecture” and thematic Party Day, we tap mechanisms like“Primary-level Political Commissar” and “Hengyi Seniors”. In addition, we are keen on makingour situation education more targeted, effective, penetrating, and affiliative.The Company consistently refines its corporate culture system centered around the principleof “Relentless Pursuit of Excellence”. With the support of Party organizations, we haveformulated the Corporate Culture Manual, reshaped core values, designed the mascot “BlueRabbit”, and organized a corporate culture festival.Valuing the guiding role of advanced models, the Company motivates Party membersand organizations at all levels to stay true to the original aspiration for relentless efforts.The campaign on “Four Showcases and Four Competitions” and feature coverage such as“Contributing to Party Building”, “Celebrating the Asian Games and Carrying Froward HengyiSpirit”, and “Promoting Culture to Forge Synergy for Progress” were carried out. Togetherwith the Group, we have issued an implementing plan for selecting advanced collectivesand outstanding individuals in Party and mass organizations, fully mobilizing the workingenthusiasm of Party members.
One core ideology
?Three demonstrationsAdhering to the core ideology of“strengthening Party building,consolidating the foundation, creatingharmony, and promoting development”,the Company strives to achieve the multi-win objective of “advanced organization,outstanding Party members, greatenterprise development, and tangiblebenefits to employees”.
Aiming to be a demonstration of scientificdevelopment, reinvigorating our growthwith talent, and striving for excellence,the Company maximizes the guiding andleading role of this goal to continually opennew chapter for Party building.
Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, theCompany actively establishes a working pattern for “Big Hengyi, Big Party Building, BigDevelopment”, fostering a Party building brand of “Staying True to our Founding Missionon the Journey of Development”. This effort has led to a unique “13446” Party building workmechanism, which drives high-quality development through high-quality Party building.
Party Building
“13446” Party building work mechanism:
Materialityanalysis
Based on the industry development and business performance, the Company conductsinternal and external stakeholder surveys, identifies the core ESG topics, and determines thereport boundary in a science-based manner, so as to effectively respond o the concerns ofthe stakeholders. The Company has established a basic process for analyzing sustainabilitytopics, including identification, assessment, and selection. The process is as follows:
Identication
Survey andAssessment
Selection andPrioritizationPotentially material topicsfor the Company's evaluationand decision-making areidentified through policyresearch, peer comparison,and diagnostic analysis ofindustry trends.
We conduct survey amongthe Company's stakeholdersand invite them to evaluatethe materiality of each topicfrom their own perspective.At the same time, we reportto the management andcollect their opinions on theassessment of the topics,and assess the importanceof topics to the Company'sproduction and operation,strategic policies andbusiness development.
Based on the assessment,the topics are prioritizedin order of materiality, and reviewed by themanagement and consultantexperts, and the materialtopics for key disclosure areselected and disclosed in amatrix.
Ensuring product qualityConsolidating safety responsibilitiesCompliant operationsOptimizing resource utilizationDevoted to the R&D and innovationResponsible supply chainProtecting employee rights and interestsAddressing climate changeUnblocking career paths
Promoting green processesReducing pollution emissionsProviding high-quality servicesInvestor relationsBusiness ethicsCaring for employeesESG governanceDeepening the Belt and Road cooperation
Carrying out community charityStrengthening environmental management
Core topicsImportant topicsGeneral topics
ESG Governance
Taking into account the current development situation and the relevantESG requirements of the places where the stocks are listed, Hengyi hascontinuously deepened its awareness of ESG governance and integratedit into the corporate development strategy and daily operation, so as topromote high-quality and sustainable development.
ESG organizationsystem
The Company actively fulfills responsibilities in environmental, social, and governanceaspects, gradually establishes and improves the ESG management framework and operationmechanism, and continuously promotes an interconnected ESG mechanism from top todown to enhance our ESG performance.
Board ofDirectors
As the decision-making arm, it is mainly responsible for finalizing the ESG strategy andensuring that the implementation of the strategy and ESG demands are integrated into thedecision-making process.
SeniorManagement
As the overall coordinator, it is responsible for implementing the ESG strategy andrequirements of the Board, and reporting regularly to the Board on the planning of ESGaffairs and progress.
FunctionalDepartments
At the coordination level, department heads are responsible for undertaking ESG projectsand coordinating and promoting the implementation of routine ESG management. Externalcollaborative organizations consist of audit and evaluation institutions and consultinginstitutions closely related to the Company, mainly providing external data and support forthe ESG governance.
ProductionDepartments
At the executive level, they are mainly responsible for the day-to-day management of ESGinformation, as well as accepting the ESG management guidance from the Company'sheadquarters and providing feedback on management performance.
ESG Materiality Matrix in 2023
The importance of external stakeholders
The degree of significant impact on Hengyi
Carrying outcommunity charity
Strengthening environmentalmanagement
Caring for employees
Investor relationsBusiness ethics
ESG governance
Deepening the Belt andRoad cooperation
Reducing pollutionemissions
Providing high-qualityservices
Promoting greenprocessesUnblocking career pathsAddressing climate changeProtecting employeerights and interestsResponsible supply chain
Optimizing resource utilization
Consolidating safetyresponsibilitiesCompliant operations
Ensuring productqualityDevoted to the R&Dand innovation
StakeholderCommunication
The Company attaches great importance to the demands and expectations of stakeholders.We have identified stakeholders including government and regulators, shareholders andinvestors, employees, customers, partners, communities, etc. A variety of channels, suchas, the Company's official website and WeChat official account, consultation and exchange,general meetings of shareholders, industry participation, are adopted to enhance the two-way communication with stakeholders and listen to reasonable opinions and suggestionsfrom internal and external stakeholders, which serve as a crucial reference for the Companyto improve its ESG governance.
Government supervision and inspection
Daily communication
Statutory information disclosure
Participating in major events such assymposiums and seminars
Environment performance datacollection and disclosureExternal survey, feedback ancommunicationMedia communicationPress releases and announcements
Performance release and meetingsTeleconferences and onlineinteractionsInvestor hotlineInvestor visitsShareholders’ Meeting
Improving company performanceProtecting the interests of shareholdersand investorsThe authenticity, accuracy, timeliness, andcompleteness of information disclosureSustainable development of the Company
Project approvalQuestionnaire survey
Government and
regulators
Strengthening corporate governanceCompliant operationsEnsuring supplyProviding employment opportunitiesDriving local economic developmentAddressing climate change
Shareholders and investors
Employees
Strengthening corporate governanceEmployee rights protectionUnblocking career developmentOccupational health and safetyDemocratic managementEmployee care
Workers' congressEmployee recognitionRegular trainingNormal communicationCorporate culture activitiesWebsite and WeChat official account, ect.
Customers
Integrity and complianceGood customer relationshipsHigh quality products and service qualityProduct innovationProduct Safety
Market surveyDaily service communicationCustomer feedback mechanismTelephone serviceProduct packaging information
Partners
Price and timely paymentLong-term partnershipInformation resource sharingIntegrity and mutual benefitsSupplier managementRisk prevention
Contract negotiationBidding meetingsDocument and correspondenceSupplier communication and trainingSupplier assistance
Communities
Addressing climate changePollutant discharge managementHarmonious community developmentResource utilization
Stakeholder identicationDemands and expectationsCommunication methods
Stakeholder identicationDemands and expectationsCommunication methods
A sound ecological environment is the cornerstone for sustainable human and social progress.Hengyi constantly refines its environmental management system, embedding energy-saving andenvironmental protection into every facet of our production and operations. By innovating in andpromoting green processes, and minimizing emissions and pollution in multiple measures, we aspireto establish a resource-efficient, eco-friendly enterprise that contributes to harmony betweenhuman and nature and a beautiful world.
?invested in environmental protection
Actions and Responses in 2023
?million?million tons
521.4955
Climate Change ResponseEnvironmental ManagementWater Resource UtilizationPollutant Emission ReductionEcological Protection
?fresh water saved
9.3745
with the Environment byGreen Development
Striving for Harmony
Climate ChangeResponse
The burning, production, and processing activities of fossil fuelsby petrochemical companies constitute their primary source ofgreenhouse gas (GHG) emissions. Attaching great importanceto China’s commitment of achieving carbon peaking and carbonneutrality, Hengyi keeps improving its climate change responsesystem. We proactively engage in reducing carbon emissions andhave formulated specific targets and actions according to ourconditions.
Systems
Metrics and targets
The Company establishes the HSE Management Committee. In line with national and local mandates for carbon peaking, thiscommittee is tasked with overall layout and holistic promotion for carbon peaking, including research in significant affairs andformulation of major policies. The leading group forms a carbon management system prioritizing control over carbon intensity andsupplemented by control over total amount of carbon emissions. Furthermore, an organizational framework for carbon management isin place to regularly schedule work progress and urge the detailed execution of tasks. Comprehensive carbon inventory is conducted,with emissions data reported periodically. By assessing carbon emissions data, we formulate scientifically sound and effective plansfor reducing carbon emissions. Additionally, by synchronizing the management and assessment of energy consumption and carbonemission indicators, the Company gradually builds a sound carbon peaking assessment system, providing both organizational andinstitutional guarantees towards achieving the carbon peaking and carbon neutrality goals.
In 2023, the Company measured its carbon emissions from boilers, gas turbines, and power generation equipment using purchasedelectricity in accordance with reporting standards and technical specifications such as the Guidelines on the GHG EmissionAccounting and Reporting for Chinese Enterprises: Power Generation Facilities released by the Ministry of Ecology and Environment.
Note: Scope 1 CO2 emissions refer to total CO2 emissions in 2023 from the combustion of fuels and the use of raw materials, auxiliary materials, steam,etc., in the production process by Hengyi and its subsidiaries, minus the amount of CO2 recycled.Scope 2 CO2 emissions refer to total CO2 emissions in 2023 from purchased electricity by Hengyi and its subsidiaries.Actions
General goal
Short and medium-term targets
The Company conducts carbon peaking and carbon neutrality work efficiently and methodically, with clear goals and tasks.Expediting green transformation in modes of production and ways of life, we advocate for an economy and society built onefficient use of resources and green and low-carbon development, ensuring carbon peaking by 2030 and carbon neutrality by2060.
Total Scope1& 2 carbonemissions(million tons)
Indicator
Absolute
Below 25%increase intotal Scope1& 2 carbonemissions
8.09
8.825
in 2023 Amount and intensity of carbon emissionsTotal CO2 emissionsYear-on-year decrease in
total CO2 emissions
8.09
million tons
1.02
Total Scope 1 CO2 emissions
4.24
Total Scope 2 CO2 emissions
3.85
Intensity of CO2 emissions
0.06
In response to the challenges posed by climate change, the Company proactively seeks out carbonreduction pathways. We focus “seven carbon peaking actions": green and low-carbon energytransition action, energy-saving, carbon reduction and efficiency increase action, green and low-carbon action in the production field, green and low-carbon action in the transport field, carbonfootprint reduction action through the circular economy, green and low-carbon action throughtechnological innovation, and green and low-carbon action for the public.Green and low-carbon energy transition action
Aligning with the national strategy for green production, the Company actively engages in the development and utilizationof clean energy and values the application of new energy and waste heat recovery technology. Through measures such asphotovoltaic (PV) power generation and peak-valley energy storage, we advance greener production. In recent years, we havebeen advancing green production through projects such as 100% rooftop PV coverage in factories, construction of PV powergeneration experimental bases, and the application of peak-valley energy storage.In 2023, we expanded our PV installed capacity by
MW to total
MW, generating
65.14
GWh of electricity, which isexpected to reach
GWh by 2024.As of 2023, approximately
40%of our capacity had been supported by waste heat power generation, a figure we expect toexceed
70%by 2024.
Rooftop PV power generation
Target
type
Baselinefor 2025
20232030
million tons
million tonsmillion tonsmillion tons
The Company promotes the use of new energy vehicles among its staff and has introduced non-road mobile machineries inareas of our new energy operations.
In 2023, we completed
energy-saving renovations.
The Company reduces electricity consumption through installing energy-saving lamps, combined use of air compressors,equipment upgrades, among others.
In 2023, around
boilers were upgraded, installed, renovated, and decommissioned, resulting in a substantial
9.05%
reduction in overall energy consumption.
Our polyester plants are engaged in carbon footprint accounting and carbon trading. Comprehensive carbon footprints areaccounted across raw materials such as PTA and ethylene glycol, auxiliary materials, and steam used in production processes,polyester fiber products, and purchased coal and electricity. Moreover, we ensure measurements of electricity and heatconsumption in production processes, with timely statistical and ledger updates. Relevant measuring devices like electricmeters and steam flow meters are also calibrated and maintained promptly.In 2023, green power trading was gradually conducted in our polyester plants, with a volume of
GWh.
Boilers at Shuangtu New Materials
Acetaldehyde recovery installation
Green and low-carbon action in the production eld
小知识：
The Company remains committed to "green manufacturing" and "circular economy," taking concrete actions in promotingthe green and low-carbon transformation across the industrial chain. With a focus on the utilization of polyester throughoutits lifecycle, we achieve high-quality polyester recycling through technological breakthroughs. Additionally, throughindependent initiatives and R&D, the Company has developed safe and quality green polyester products, such as theintroduction of innovative product Eticont. What’s more, we take the lead in the flame-retardant fiber products in China,with both production and sales on a steady upward trajectory. We achieve breakthroughs in the key technology of in-situ polymerization for antibacterial polyester that features promising prospects. Furthermore, we have introduced high-performance polyester materials prepared from bio-based raw materials, with significant sustainability, degradability, andenvironmental benefits.
Carbon footprint reduction action through the circular economy
In 2023, we spent RMB
million on two advanced air compressors. Alongside this, we revamped our existing pipeline networkto operate at reduced and differential pressures, achieving a reduction in motor power consumption by1,790kW and savingelectricity of 14.8GWh/year. Additionally, we undertook
upgrades to our compressed air conditioning systems, leading toelectricity savings of 5.762GWh and annual savings projected at
21.4
GWh.
Energy-saving, carbon reduction and efciency increase actionIn active response to the national mandate to “phase outoutdated capacity for industrial upgrading”, the Companystrengthens energy management and staggers electricityuse during peak hours. Through energy-saving renovationsfor equipment and processes, including motors, fans, pumps,compressors, transformers, heat exchangers, and industrialboilers, we manage to reduce energy consumption whileenhancing quality and competitiveness.The Company adopts the treatment process of “bag dedusting+ SCR de-nitration + limestone gypsum desulfurization +wet electric dedusting” for coal-fired boilers. This approachraises coal quality, makes chemical raw materials lighter, andreduces Scope 1 GHG emissions.
In our polyester plants, the eco-friendly acetaldehyde recoverytechnology is employed to extract industrial acetaldehyde andglycol from wastewater. This not only lowers COD emissions,but also consumes less raw materials, save resources, andmeets the expanding production demand.By 2023, approximately67%of our polyester productioncapacity had incorporated this technology, recovering about
15,000 tons of acetaldehyde and 6,000tons of glycol in2023 alone.
Green and low-carbon action in the transport eld
EnvironmentalManagement
The Company strictly complies with laws and regulations such as theEnvironmental Protection Law and the Environmental Impact AssessmentLaw. We have formulated theEnvironmental Protection Management System,and also advance environmental certifications across subsidiaries. Duringthe reporting period, 7 of our subsidiaries were certified by theISO 14001:
Environmental management systems.The Company abides strictly by the requirement for national pollutant dischargepermits and develops an environmental self-monitoring plan. Further, weengage a qualified third-party agency for regular monitoring, ensuring allpollutants are discharged in compliance with legal and regulatory standards.
?
521.4955
millioninvested in environmentalprotection in 2023Data
of our subsidiaries were certifiedby the ISO 14001: Environmentalmanagement systems
Hengyi engages environmental volunteer supervisors from neighboring communities
Zhejiang Yisheng, a subsidiary of Hengyi, has hired ten environmental
volunteer supervisors from neighboring communities to oversee
and guide our environmental protection endeavors. Through their
prompt information about surrounding odors, we could take
countermeasures more effectively to boost our environmental
governance capabilities.
Case
Spring Festival Tea Party for Environmental Volunteer Supervisors
Identication ofenvironmental hazards
The Company institutes an environmental protection inspection system, conducting dailyinspections on the operation of environmental facilities and odors within and near our factories.Moreover, we identify environmental hazards across the Company on a monthly basis, followedby prompt rectifications, ensuring zero environmental pollution incidents.
Environmentalemergencymanagement
The Company intensifies risk management in environmental protection. We have establisheda leading group for environmental pollution emergency response and an emergency responseoffice. We draft emergency response procedures and plans, and have revised theResponse Planfor Environmental Emergencies.We provide institutional provisions for emergency training, drills,emergency preparedness and responses, accident evaluations, among others, coupled with accidentdrills. These endeavors ensure we rapidly manage accidents and minimize harms and losses.Before the commencement of project operation, the Company enhances environmental emergencymeasures, ensures adequate reserves of emergency supplies, and conduct training on pollutionprevention and control measures for employees. We organize regular emergency training and drillsfor environmental emergencies, and keep records with the local environmental authority.
The Company encourages green consumptionand the use of green, low-carbon products. Bycontinuously strengthening ecological educationamong employees, we integrate green andlow-carbon principles into production and life.Through publicity, advertising, and activities suchas Environment Day and Low-Carbon Day for allstaff, we enhance their green and low-carbonawareness.In November 2023, the ASEAN and APEC BusinessAdvisory Councils of Brunei in collaboration withthe Ministry of Finance and Economy organizedthe Brunei Sustainable Economy Forum 2023themed “Sustainable Goals: Balancing Growthand Climate Commitments”. The Forum aims tohighlight Brunei’s commitments to a sustainablefuture and explore the role of business in achievingthese national goals. Under the support of Brunei’sMinistry of Finance and Economy, ARUP, a companybased in the UK, and Hengyi were invited to discusson green economic development and seek carbonreduction solutions.
2023年公司进行锅炉升级、新建、改造和淘汰，总计约
台次，整体能耗总量降低约
9.05
%,节能减排效果显著。
2023年公司进行锅炉升级、新建、改造和淘汰，总计约
台次，整体能耗总量降低约
9.05
%,节能减排效果显著。
The production process of caprolactamuses nitrogen and generates CO
, renderingthe entire process less cost-effective andenvironmentally friendly. Through the adoptionof the CCUS technology and the cooperationwith Hangzhou Oxygen Plant Group CO., Ltd.(Hangyang), the Company has invested in a setof the ultra-high purity nitrogen air separationequipment with the capacity of
3,000
m?/h and a set of CO
recycling equipment withan annual capacity of
200,000
tons. Thisinitiative involves recycling a portion of thehigh-purity CO
for dry ice production atHangyang, utilizing another portion as raw gasfor transporting gasified coal, and emptyingexcess tail gas, an effort that achieves CO
capture.
Green and low-carbon action through technological innovation
Green and low-carbon action for all staff
CO
recovery and utilization facilities
WaterResourceUtilization
The Company places a high priority on the conservation and comprehensiveutilization of water resources. By promoting measures such as high-efficiencywater production technology, efficient reuse of reclaimed water, and conservationof water in cooling towers, we support the conservation and circular use of water,boost utilization efficiency, and reduce consumption. In 2023, we saved freshwater by 9.3745 million tons.The Company has developed policies such asthe Water Conservation ManagementRegulations and the Water Conservation Assessment Regulations.A water conservationmanagement team is in place to continually standardize and refine our waterconsumption and conservation systems. While encouraging employee participationin water conservation, we intensify water conservation inspections on publicfacilities and offer rewards for reports of non-compliance with our waterconservation policy.
In 2023,
9.3745
million tonsfresh water saved
Desalted Water Preparation Equipment
Through biological treatment, ultrafiltration, and reverseosmosis of wastewater produced in our productionprocesses, we achieve an
87-93%
reuse rate ofreclaimed water.
The Company replaces original desalted water preparationprocesses, such as disc filters, ultrafiltration, reverseosmosis with RO membranes, and mixed bed ion exchange,with the
EFDTprocess, addressing challenges such ashigh requirements for input water quality, low yield of outputwater, and high energy consumption.
Efcient reuse of reclaimed waterWater production process improvement
PollutantEmissionReduction
The Company strictly complies with laws and regulations including theLaw onPrevention and Control of Environmental Pollution by Solid Wasteand theWaterPollution Prevention and Control Lawto improve our pollution prevention andcontrol mechanism. Through strict control over the discharge of wastewater,exhaust gases, and solid waste, we enhance our prevention and control andminimize environmental impact, building ourselves into a resource-saving and eco-friendly enterprise. In 2023, we experienced no significant environmental pollutionincidents, maintaining a 100% compliance rate with emission standards.
The Company complies with theWater Pollution Prevention and Control Lawand local discharge standards. Under the principle of“separating by pollution type, rainwater and sewage, and industrial/domestic wastewater”, we establish a sound in-factory wastewatercollection system, employing measures against corrosion, leakage, and seepage to control discharge of wastewater.Wastewater from polyester production, after pre-treatment by steam stripping installations, is processed using “pre-treatment +anaerobic digestion + aerobiotic secondary biochemistry” techniques at sewage treatment stations together with wastewater fromspinning workshops and domestic sewage. The treated portion is recycled through the reclaimed water reuse system, while theremainder is discharged into the sewage pipe network after meeting relevant standards in theTechnical Requirements for MethylBromide Quarantine Fumigation Chamber (GB 31752-2015).In 2023, the amount of ammonia nitrogen discharged from wastewater was
12.45 tons, a year-on-year decrease of 67.55 tons.
Exhaust gases emitted from our production activities mainlyinclude dust, non-methane total hydrocarbons, acetaldehyde,and smoke. As per relevant laws and regulations concerningair pollution control, theEmission Standard of Pollutants forSynthetic Resin Industry, the Emission Standard of Air Pollutantsfor Boiler, and local emission standards,the Company adoptsthe principle of categorized treatment to control at the source.By implementing treatment measures from environmentalassessments, we reduce the generation of exhaust gases, strictlycontrolling and minimizing the emissions of unorganized exhaustgases.In 2023, the amount of smoke and dust emissions was 111.86tons.
? The deodorization and cover treatment system of PTA
aeration tanks enables discharge after high-energy ionpurification treatment, with a design capacity of 101,000m?/h and a deodorization efficiency of up to 90%
? Discharge of PTA Feeding Dust after Treatment by BagFilters
Exhaust gas management
Wastewater management
Digital environmentalmanagement
The Company has established a digital platform for safety and environmental protectioninformation, where the environmental protection sector encompasses online monitoringmanagement, video surveillance management, hazardous waste management, resource andenergy management, and environmental facilities management. Through online monitoringanalysis and environmental facilities management, we can access to pollutant emissiondata at all outlets and the operation of environmental facilities. Moreover, the platformincludes a feature of pollutant emission data warning, pushing data to relevant personnelwhen emission concentrations reach threshold levels.
Reclaimed Water Treatment Equipment
? Discharge of polyester wastegas after being introducedinto the hot coal furnace forincineration
? Discharge of spinning exhaustgas after treatment by oilsmoke purifiers
? Discharge of flue gas from
coal water slurry-firedboilers via the chimney afterdenitrification, dust removal,and desulfurization treatment
Hengyi uses RTO installations to improve incineration efciencyZhejiang Yisheng, a subsidiary of the Company, has introduced five sets of Regenerative Thermal Oxidation (RTO)environmental equipment, featuring regenerative ceramics with 95% heat recovery efficiency. They treat organic exhaustgases across a 0-8% concentration range with over 95% incineration efficiency and a 98% Br ion removal efficiency inscrubbing towers, reducing fuel consumption significantly. This ensures effective heat recovery and consistent, reliableexhaust gas treatment.
Case
Waste management
The Company strictly abides by laws and regulations such as theLaw on Prevention and Control of Environmental Pollution by SolidWaste.Under the principles of recycling, reduction, and harmlessness in treating solid waste generated in our production process, weestablish a ledger system and set up temporary waste storage facilities, coupled with classified collection, storage, and quality-baseddisposal of hazardous waste and general solid waste to ensure safe and efficient treatment.
General waste
Hazardous waste
In accordance withthe Standard for Pollution Control on the Non-Hazardous Industrial Solid WasteStorage and Landfill,we sell waste blocks/slices, used filter cartridges, textile waste and scrap silk,and discarded packaging materials to recycling companies, and entrust the environmental sanitationdepartment to dispose domestic waste. In strict accordance with the Standard for Pollution Control on Hazardous Waste Storage,we entrustthe disposal of hazardous waste such as waste oil to qualified and capable agencies. We handletransfer and approval procedures according to regulations and strictly implement the hazardous wastetransfer form system.EcologicalProtection
The Company steps up efforts to promote eco-friendly principles. Wecultivate ecological protection awareness among our employees andadvocate for a low-carbon lifestyle. Employees are organized to participatein relevant public welfare activities and knowledge training, allowing green,low-carbon concepts to be rooted in their hearts.
Electricity-Saving TipsHengyi conducts a beach cleaning campaign in celebration of theWorld Cleanup DayOn September 20, 2023, Hengyi Industries,in collaboration with Green Brunei, held abeach cleanup campaign, engaging 45 Hengyiemployees and 10 Green Brunei volunteers.The event is part of Hengyi Industries’“One Planet Initiative" and is kept in linewith the theme of the World Cleanup Day.Through picking up trash on the beachesand promoting ideas along the beaches, thecompany aims to preserve the natural beautyof Brunei Darussalam’s beaches.
Case
Committed to a “safety first” policy, the Company strictly adheres to laws and regulations concerningwork safety, including theWork Safety Lawand theRegulations on the Safety Administration ofHazardous Chemicals,holding onto the red line of safety. We continually enhance the quality of ourproducts and services towards excellence, winning trust and respect from customers.
?No major work safety accidents
Actions and responses in 2023
Safety ResponsibilityProduct QualitySuperior Services
?invested in safety
million
139.8686
?pass rate of safety training
%
Trust with Quality
Earning Customer
SafetyResponsibility
The Company establishes and refines internal policies and operationalprocedures for work safety. By promoting work safety standardizationand the dual prevention system across the board, we keep improvingour work safety management system. This includes bolstering safetytraining and achieving closed-loop management of work safety tobuild a solid defense in work safety.Work safety management
Work safety mechanism
Work safety standardization
Closed-loop management of work safety
Holistic safety responsibility performance
The Company establishes an HSE Committee, with each branch and subsidiary setting up an HSE leading group to implement worksafety policy, study, coordinate, make decisions on, and guide the Company’s major work safety issues, urge reports on work safetyinspections, listen to advice from all levels, and propose practical solutions.
The Company establishes and refines internal policies for work safety, such as theResponsibility System for Work Safety andEnvironmental Protection, the Provisions on the Administration of Identification and Treatment of Hazards, the Provisions on theAdministration of Fire Safety, and the Provisions on the Administration of Fire Work Safety.We develop a work safety managementsystem, which has been certified, and advance work safety standardization, ensuring work safety in production and operationalactivities. By the end of the reporting period, nine of our subsidiaries had achieved Level 3 certification in work safety standardization,one had achieved Level 2 certification, and another one had achieved Level 1 certification. There were no major work-related injuriesand casualties in 2023.
Adhering to “risk control before hazards are formed and hazard elimination before accidents occur”, the Company establishes adual prevention system featuring “participation by all, control throughout the process, and coverage in all areas”. Through responsein advance, accurate monitoring, source treatment, and scientific prevention, we achieve closed-loop management of work safetythrough risk control and a hazard identification and treatment system.
The Company promotes the signing of target responsibility letters for safety and environmental protection across the board tomake clear the reasonability targets for safety and environmental protection in positions at all levels. Aiming at the full coverage ofresponsibility both vertically and horizontally, we ensure regular and effective functioning through the all-staff work safety incentiveand constraint mechanism.
Safety Risk Notifications Posted in Positions on the SiteSafety emergencymanagement
The Company establishes an emergency management system and formulatesemergency response plans for critical links. Through full-scale, tabletop,and other various forms of emergency drills, we examine the compliance ofemergency plans with reality, the effectiveness of emergency responses, and theproficiency of emergency response teams in skills. We also organize emergencydrills in collaboration with relevant departments to consistently enhance thesafety emergency skills and comprehensive emergency response level of ouremployees.
safety emergency drills
9,336
participants
In 2023
Hengyi conducts emergency drillsIn June, the Company promoted all levels to conduct emergency drills. In our branches and subsidiaries, team leadersorganized emergency equipment training in batches. Through full-scale, tabletop, and other forms of emergency drills, wesignificantly bolstered our emergency response and rescue capabilities, providing guarantee for work safety.
Case
Emergency Rescue Drills at Zhejiang YishengEmergency Drills for Thermal Medium Leaks, Fire Escape, Hazardous
Waste Leaks, and Confined Spaces at Fujian Yijin
The reghting skills challengeJune 2023 marked the 22nd National Work Safety Month, during which Suqian Yida, Jiaxing Yipeng, Haining New Material, andTaicang Yifeng collaborated to host a firefighting skills challenge. Featuring events such as a water hose relay throw andcatch race, this activity sets both honor-based and material rewards, aiming to elevate the safety knowledge and skills ofall employees.
Case
Joint Firefighting Skills Challenge
Safety hazardidentication
The Company scientifically sets cycles for identifying hazards at all levels, refines the listof items to be identified, and finalizes criteria for classification and grading of hazards. Wealso make clear responsible personnel for treatment, and strengthen the implementation ofrectifications and acceptance of treatment. Moreover, we carry out special inspections on“identifying hazards and directions against regulations, illegal operations and violations oflabor discipline” at repair and maintenance sites, guaranteeing more targeted identificationof hazards.
In 2023
Hengyi organizes safety hazard identication
By extensively mobilizing all staff for autonomous safety management, the Company identified work safety hazards in aholistic manner. By learning from past accidents to close gaps, shore up weaknesses, strengthen measures, and eliminatehazards, we further advance the long-term mechanism for identifying and addressing hazards, with the aim to curb suchaccidents.
Case
Cross-checks on Significant Hazards at Hengyi Caprolactam in Collaboration with the Bureau of Emergency Management of Shaoxing andExperts from China Chemical Safety Association
Comprehensive Safety and Environmental Protection Inspection at Jiaxing Yipeng
3,327safety inspections
13,297
hazards identified
99.86
% rectification completion rate
The Company abides strictly by national regulations such as theRegulations on the SafetyAdministration of Hazardous Chemicalsand theRegulations on the Administration ofPrecursor Chemicals.We keep improving our management systems for chemicals safetyand exercise stringent oversight throughout the process of chemicals. Following nationaland local requirements, we conduct regular chemical audits, and thoroughly streamline andestablish records and ledgers to propel chemicals towards holistic and fine management.
Hengyi sets up signs for major hazard sources and hazards
The Company ensures no chemicals that are banned,phased out, or designated for substitution by nationalregulations are used in our production and operationalactivities. We set up chemicals safety signs inworkplace that alert employees to be cautious ofhazardous areas and strengthen preventive measures,heightening their awareness to prevent risks associatedwith hazardous chemicals.
Case
Safety Signs for Hazardous Chemicals
Chemicals safetymanagement
In 2023, major chemical leaks or othersafety incidents occurred
Hengyi develops a safety management information system for chemicalsCommitted to the digitalization of work safety, the Companykeeps improving its safety management information system.By introducing the Zhejiang Provincial Hazardous ChemicalRisk Prevention and Control Big Data Platform: Work SafetySubsystem, we enable digital management of personnelqualifications, operational processes, work environments, andequipment, significantly elevating our capabilities in chemicalsafety management.
Zhejiang Provincial Hazardous Chemical Risk Prevention and ControlBig Data Platform (Work Safety Subsystem)Safety training
The Company attaches great attrition to safety education and training for employees toenhance their safety awareness and strengthens our safety training system. We conductdiverse work safety training sessions and knowledge promotions via multiple channels,platforms and forms, including Work Safety Month, specialized lectures, practical drills, livestreamlining, video conferences, and WeChat work groups, all aimed at boosting our softpower in work safety.In 2023
In 2023
Hengyi conducts safety activitiesOn June 28, the Company organized a training sessionthemed on “Safety Awareness and Emergency Responsesacross the Workforce”, leading to a series of safetyactivities at both company and team levels. By carryingforward safety culture and consolidating responsibilitieslevel by level, we strive for safe development and aconducive work safety environment.On October 30, the Company’s management membersparticipated in the training sessions onLearning Casesfor Internal Accidents, Factory Fire Management Training,and Environmental Protection Management Knowledge,aiming to enhance employees’ awareness in accidentprevention, fire safety, and environmental protection.
Watching of Cases for Work Safety Accidents byEmployees
Training on Learning Cases for Internal Work SafetyAccidents
ProductQuality
The Company rigorously adheres to relevant national and industry product standards andfurther improves our quality management system. All 7 of our subsidiaries have beencertified by the ISO 9001 Quality management system and the EU OEKO-TEX. Embracing strictguarantee that our products do not contain hazardous substances and heavy metals abovestandards, we are committed to delivering high-quality products.Case
safety training per traineehours
safety training sessions
%
pass rate of safety training
%
pass rate of outgoinginspection
0.05
%
recall rate for products
%
rectificationcompletion rate
issues identified inproduct inspections
11,079
new employees engaging inthree levels of safety training
Case
Hengyi conducts QC group activities and production operationskills contestsThe Company routinely audits our quality management system and hosts internal technical and operational trainingsessions. These include QC group activities and production operation skills contest.
Case
QC Group ActivitySkills Contest
Exercisingstrict controlover productquality
The Company has formulated theInternal Quality Control Standard for Chemical FiberProducts,proposing clear requirements for strict control over physical properties ofchemical fiber products. According to our quality standards, products are categorized intothree grades: excellent (AA), first-class (A), and qualified (B), with any products below thisstandard classified as substandard (C). We track, spot check, and manage product qualitymetrics to ensure the delivery of high-quality products that meet customer expectations.
?We establish an exclusive D1014 – Quality Feedback Process for Procured Materials to handle feedback onabnormalities in raw materials
We establish an exclusive D1310 – Change Process for Inspection Index Central Value of Chemical Fiber Products tooversee the entire product process
Quality control over raw materials
Process control over production
Improving qualitymanagementstandards
The Company continually formulates and refines our quality management standards.By revising quality management policies such as theManagement Specifications forProduction Statistics, the Production Process Management Inspection System, the Measuresfor the Management of Product Central Value, and the Post Operation Specifications,westandardize our production processes and standards, ensuring employee compliance withprocedures. Additionally, we enhance equipment management, improve the basic ledger forequipment management, and conduct specialized management inspections on equipmentto maintain stable product quality.SuperiorServices
In line with customer-centric philosophy, the Company continually improves the servicemanagement system. We response actively to diverse customer demands and listen toemployee evaluations feedback on product quality, thus enhancing the quality of ourproducts. We elevate both the quality and efficiency of our services across multipledimensions, ultimately boosting customer satisfaction.After-sales services
Complaint handling
Our after-sales service team upholds the principles of professionalism, speed, and efficiency. By equipping with a sound after-salesservice guarantee system, we promptly offer technical services and respond to complaints, delivering superior after-sales services forcustomers.
The Company places a high value on customer complaints and feedback. Aiming to satisfy customer use demands, we smoothencomplaint channels, optimize the compliant mechanism, and enhance compliant analysis. Through multi-layered customer complaintchannels, such as onsite visits, micro-malls, and a 400 service hotline, we promptly address customer issues with various methods,including technical guidance, product improvements, exchanges and returns, and financial compensation, to consistently enhance thequality of customer services.
In 2023
In 2023
score for customer satisfaction, marking an improvement from 2022
We establish a Non-Conforming Product Feedback Process and a D0941 – Product Quality Evaluation Process topromptly evaluate products of abnormal quality and control the output of unqualified products
Control over product output
%
customer satisfaction withafter-sales services
98.2
%
completion rate
customer complaintsreceived
handled
Hengyi upholds that a sound partnership with all sides is an integral part of the Company’s robustand sustainable growth. We pool the strengths of various stakeholders to enhance suppliermanagement and foster a coordinated development across the upstream and downstream industrialchain. Meanwhile, we expedite the development of innovative products, cultivate a top-notch R&Dteam and facilitate industry-wide exchanges and development, aiming to shape a brighter futurewith partners.
Responsible Supplier ChainR&D and InnovationIndustry Exchanges and Cooperation
?new suppliers admitted, with
?patent applications obtained
2023 Actions and Responses
1,005
domestic suppliers and
?invention patents
? overseas suppliers
and Win-win Relationshipswith Partners
Fostering Stable
ResponsibleSupplier Chain
Hengyi is committed to supplier management throughout the entirelife cycle. In this regard, the Company continually refines its suppliermanagement, pursues environmentally friendly and responsibleprocurement, and establishes enduring and effective communicationchannels with suppliers. Our aim is to elevate both the quality of suppliedgoods and the level of service provided.
As of the end of the reporting period,the Company had a total of
suppliers8,111
SupplierManagement
The Company conducts supplier management across the entire life cycle by establishingand implementing management protocols like theMeasures for the Quality Management ofExternal Suppliers, Supplier Admission Requirements, and Measures for Supplier Inspectionand Management. Meanwhile, the Company introduces standardized and scientificmechanisms for supplier admission, inspection, trial, and evaluation and establishes adigitalized supplier management system, facilitating efficient management of procurementsuppliers.As of the end of the reporting period, the Company had a total of 8,111 suppliers, including2,107 active engineering suppliers. In 2023, we admitted 1,005 new suppliers, including 926domestic suppliers and 79 foreign ones.Supplier admission and screeningWith a rigorous mechanism for supplier admission management in place, Hengyi conducts on-site inspections and delivers inspectionreports. In 2023, a total of 295 suppliers underwent on-site inspections, reflecting our ambitions on admitting new suppliers andfortifying our supplier network.Supplier admission process
Registration
Supplier basicinformationreview
Determinationof on-siteinspection
On-siteinspection
Trial ifnecessary
Trial period
Initiation ofadmissionapprovalprocess
Qualifiedsupplier
Digital procurement system
The Company has developed and continuously refined the Supplier Relationship Management (SRM) procurement information system,bolstering its functionality and fortifying against vulnerabilities. In addition, the Company comes to implement the three-way matchingsystem and the electronic seal project. These initiatives encompass a range of high-risk business processes, including supplierselection, bid invitation and bid tendering, tender opening, tender evaluation, and determining bid winner, all integrated into the system.Stringent controls are in place to manage business processes and approvals.The SRM system helps users and suppliers establish an information exchange platform, facilitating supplier registration, admissionand assessment, sourcing identification, inquiry comparison, bidding and other business coordination, and also allowing for supplierperformance assessment.
ResponsibleProcurement
In addition to mandating a supplier quality management system, Hengyi’s bidding andprocurement qualifications encompass criteria such as compliance with environmentalmanagement and the occupational health and safety management systems, along withpossessing environmental impact assessment status and wastewater discharge permitacquisition status. We advocate that suppliers use clean fuels and production equipment,aiming to minimize environmental pollution. Moreover, we encourage our suppliers toconsider environmental and social impacts when delivering products and services, therebyfostering secure, stable, and responsible supplier relationships.
In 2023, Hengyi personally interviewedor contacted via telephone with
SupplierCommunication
The Company is committed to building a stable and enduring supplier network. Byimplementing a system of recognition and rewards, we aim to instill a sense of honor amongour suppliers and enhance their loyalty. In 2023, a total of 67 suppliers were personallyinterviewed or contacted via telephone. During these interactions, opinions and suggestionswere gathered on procurement services, the SRM system, fairness and justice, honestpractices, and other relevant areas. Our aim is to continually refine supplier management.suppliers
Conducting excellent supplier award ceremonyHengyi's affiliated engineering firms has hosted 3 excellent supplier award ceremonies and appreciation dinners, where33 excellent suppliers were invited. Among these, 92 suppliers were honored as excellent suppliers while 144 wereacknowledged as vital suppliers. The initiative, characterized by the presentation and sending of medals, letters ofgratitude, Hengyi calendars, and souvenirs adorned with the Hangzhou Asian Games mascot, underscores the Company'sproactive endeavors in nurturing strong supplier relationships.
Case
R&D andInnovation
Hengyi actively embraces the new philosophy of innovative, coordinated, green, open,and shared development and regards innovation as the primary driving force. As weadvance the transformation from “an industrial Hengyi" to “a technological Hengyi,"we remain committed to the R&D and application of green chemicals and advancedmaterials, striving to emerge as the technical leader in the industry.
Over1,027
CurrentlyR&D personnel
Scientic andTechnologicalInnovationSystem
Green andInnovativeProducts
The Company keeps enhancing its sci-tech innovation system and increasing its investmentin technology. In addition, we actively cultivate the spirit of craftsmanship and foster anatmosphere of innovation among all staff members, striving to build a team of pioneeringtechnical talents and develop an "ecosystem" for talent cultivation. With the ongoing unleashingof innovation potential, we boost our core competitiveness in industrial development.Currently, there are more than 1027 R&D personnel, including 79 R&D talents with doctoraldegrees. Approximately 30% of them hold master’s or doctoral degrees and senior titles.They hail from universities such as Zhejiang University, Fudan University, Dalian University ofTechnology, Donghua University, Sichuan University, Soochow University, Tianjin University,University of Chinese Academy of Sciences, East China University of Science and Technology,and Beijing University of Chemical Technology, alongside renowned overseas universities.This diverse assembly comprises numerous technical and engineering experts, post-doctoralresearchers and senior R&D engineers in fields of polyester chemical fiber and other chemicalproducts.Since 2019, the Company initiated the "Hundred Hengyi craftsmen" and has since identified 39individuals as "Hengyi craftsmen." Annual activities such as the "Rationalization Contest," "QCAchievement Presentation," and "Invention Named After Employee" have been organized tospur innovation across the entire workforce. By finding and establishing exemplary innovatorsin posts and launching employee innovation workshops and leading professional program,the Company works to inspire a spirit of enterprise into its workforce. Over the course ofthe initiative, hundreds of young exemplary staff, technical experts, leading professionals,Outstanding Employees of Silver Gear and Outstanding Employees of Gold Gear have beenidentified, and multiple innovation workshops have been established. Additionally, six workmethods have been recognized as advanced practices within the Xiaoshan District.The Company launches green andenvironmentally friendly polyester product"Eticont", laying out medium to long-termprojects such as biodegradable polyester,biobased polyester, and expanded polyester.
holding master's or doctoraldegrees and senior titles
%
Antibacterial PolyesterThis new health protection product with antimicrobial function,independently developed by Hengyi Research Institute, takes nano-zinc oxide as antibacterial agents and adopts a new preparationmethod of in situ polymerization instead of the traditionalmaster batch blending. The fiber has excellent antimicrobial andmechanical properties. Moreover, it allows for the preparation ofantimicrobial color silk or multifunctional antimicrobial fibersby incorporating color or functional masterbatches. Additionally,it facilitates the production of profiled fibers through profiledspinning, such as moisture-wicking cross-sectional profiles.
The first prize of the CNTAC Science TechnologyProgress Award for the key technology andindustrialization of antimony-free environmentallyfriendly polyester melt direct spinning
The second prize of Technological Invention Award ofIESC Science and Technology Award for antimony freepolyester fiber
The certificate of Excellent IndustrialProducts of Zhejiang Provinceby Excellent Industrial ProductSelection Committee for Eticont
The third prize of the Patent Awardof Zhejiang Provincial IntellectualProperty Award
The CNTAC Patent Award for preparationmethod of titanium-silicon compositehomogeneous catalysis
Applications Socks, underwear, towels, dishcloths and military uniforms
Eticont
Eticont, developed by Hengyi Research Institute under the Company, stands as a polyester product with full proprietary rights. Eticontuses a full titanium composite catalyst system to replace heavy metal antimony catalysts, addressing the long-standing issue of waterand soil pollution associated with antimony catalysts in traditional polyester production. This eco-friendly, green, and health-consciousproduct achieves green circulation throughout the textile product lifecycle. Moreover, Eticont meets all benchmarks of antimonypolyester products, making it a seamless replacement across various applications.Applications baby clothes, underwear, home textiles, and clothing
Intellectual PropertyProtection
We attach importance to the protection of intellectual property rights. In thisregard, we abide by the Chinese laws and regulations including thePatent Law,theTrademark Lawand theCopyright Law, and formulateIntellectual PropertyManagement Measures,continuously improving the management of the way wecreate and utilize intellectual property rights. In 2023, there were no contentiouscases or legal proceedings regarding intellectual property rights.
Flame Retardant Polyester
Stain-resistant PA6
Bio-based Polyester
The product serves as a copolymer flame retardant, with stable, long-lasting and effective flame-retardant performance. Boasting agood texture and appearance, it is water-resistant eco-friendly and non-toxic. Notably, the fabric achieves B1 level flame retardancystandard of GB8624-2012, with a limiting oxygen index over 32%.
Stain-resistant PA6 stands out as a unique product developed with full proprietary rightsby Hengyi Research Institute. Addressing the pressing market demand for domestic stain-resistant nylon fabrics, Hengyi embarked on the "key technology and industrialization projectfor stain-resistant PA6". This project has led to an independently developed novel stain-resistant agent through formula design, optimized polymerization processes, and upgradedpolymerization equipment. Consequently, we manage to produce in-situ polymerized stain-resistant PA6 slices. Fabrics crafted from these slices offer permanent resistance to acidicdyes, eliminating the need for additional surface treatments. Moreover, we've pioneeredkey technologies for stain-resistant BCF process, covering spinning, hot drafting, hot airexpansion, and high-speed one-step winding. By incorporating color masterbatches, we'vemanufactured BCF fiber products with exceptional stain resistance and color retention.Additionally, we work to establish a rapid assessment method for grading the stain resistancelevel of fibers and fabrics, aiming to support the optimization of stain-resistant products.
Hengyi supports research on multiple bio-based materials, which use agricultural and forestry waste as raw materials to maximizeresource utilization and reduce oil consumption and carbon emissions. These materials are safer and more recyclable.Through collaboration with Zhejiang University, Hengyi has developed high-quality PEF and a series of copolyesters using an efficientpolymerization catalytic system. Hengyi Research Institute plans to promote the development of the emerging bio-based materialsindustry, realize a closed-loop cycle of carbon dioxide, and contribute to global energy structure adjustments by reducing carbonemissions in the polyester industry.
Applications
Applications
Applications
Curtains, wall coverings, draperies, and bedspreads in public places
High-end carpets such as square carpets, household carpets, and car carpets
High-barrier packaging materials
As of the end of the reporting period, the Company boasts
valid authorized patents and
valid invention patentsIn 2023, the Company had a total of
patent applications, including
invention patents
Data
The first prize of the 2023 CNTAC Science Technology Progress Award for the Green Manufacturing of TiO2 Matting Agentfor Nylon and Complete Set of Technologies for Industrialization of Fully Matte Nylon
The third prize of the Patent Award of Zhejiang ProvincialIntellectual Property Award by the People’s Governmentof Zhejiang Province for preparation method of titanium-silicon composite homogeneous catalysisThe second prize of Technological Invention Award of IESCScience and Technology Award for the development ofgreen Titanium-based catalyst and its relevant applicationin the production of antimony free polyester fiber
Honors
Digitalization
The Company works to advance the "Digital Hengyi" initiative, with a focus on implementingscenario-based applications in production, marketing, supply chain, procurement, andhuman resource management. In addition, we conduct in-depth data mining and analysis,and has built an open and shared industrial online platform. By utilizing digital intelligence,our aim is to establish smart factories that empower the Company to achieve efficientoperations and high-quality development.Hengyi Brain
The Company shatters information silos across its business with a big data platform.Leveraging big data technology, we've implemented the "Hengyi Brain" production andoperation decision-making system that consists of over 100 business models. "Hengyi Brain"fosters an integrated visualization platform of “online trading, online finance, warehousing andlogistics.” The platform offers diverse digital solutions, including digital management, smartmanufacturing, online trading, logistics services, market analysis, coordinated production,supply and sales, as well as supply chain finance. Our aim is to enhance the managementefficiency of production and operation, and achieve digital transformation.
SmartFactory
With cutting-edge technology and processes, we utilize a range of intelligent manufacturing equipment suchas three-dimensional warehouses, automatic winding, automatic packaging, intelligent appearance inspection,AGV cars, and robots. In addition, we adopt a customer-centric approach, focusing on optimizing the entiresupply chain experience from order placement and production scheduling to logistics and services. Moreover, weoptimize product lifecycle management, substantially reducing labor intensity while greatly boosting productivity.These combined efforts empower Hengyi to achieve smart factory management and deliver flexible productioncapabilities.Production endThrough a smart manufacturing execution system, we connectvarious automated and intelligent devices, achieving intelligentproduction, management and decision-making, and enabling afull-process product traceability system. Additionally, we haveindependently developed a single-spindle data flow system thatfacilitates efficient logistics within the workshop warehouseand enables automatic quality control, contributing to processoptimization, information sharing, and efficiency improvementamong various production processes.
Marketing endWith an integrated supply chain system, we have realizedthe integrated management of the entire supply chainprocess, from customers placing orders on the onlinestore and marketing order management to smartwarehousing picking and assembly, intelligent parklogistics, and logistics distribution.
Sales Data Full-process System
The sales data full-process system prioritizes long-term customer value. By integrating systemslike micro mall, closed-loop marketing, shipment commissioning, and shipment applications,the system embeds customer marketing services throughout the Company's operations. Thisautomation and optimization of the sales process have translated into enhanced sales efficiencyand accuracy, ultimately improving customer satisfaction and offering steadfast support for theCompany's growth.
Labor ForceManagement System
LogisticsTransportationManagementPlatform
The Company officially implements a labor force management system to standardize the humanresource management in a scientific, refined, and convenient way. Through modules like theattendance, employee experience, and analysis statement (BI), the system addresses issues such asinefficient personnel management, sluggish and poorly correlated personal data collection, and lowemployee engagement. Finally, the system leads to standardized management of crucial elementssuch as organization structure, job positions, and processes. It also enables regulated businessprocesses including onboarding, offboarding, and transfers, and automated operation rules suchas scheduling, leave-taking, and performance-tracking. With the integration of data from differentbusiness systems, the efficiency of HR management is greatly enhanced.The system encompasses various functional modules including contract management, raw materialtransportation management, finished product distribution management, bulk cargo transportationmanagement, repair and maintenance management, driver mini-program, billing management,driver’s vehicle management, statements dashboard, and monitoring and alarm center. Theapplication of this logistics system has comprehensively enhanced the efficiency of every link,facilitating real-time business data sharing and relevant statistical analysis. It effectively boostslogistics carriage capacity, leading to comprehensive improvement of overall performance for thelogistics enterprise.IndustryExchanges andCooperation
Valuing industry exchanges and cooperation, the Company activelyforges partnerships with industry associations, universities, researchinstitutions. By pooling various resources, we create a robust synergyamong industry, academia, and research institutes. In addition, we activelyengage in industry seminars and standard preparation, develop platformsfor emerging technologies and promote talent cultivation, aiming tocollaborate with peers to drive industry advancement.
As of the end of the reporting period,
national and industry standards formulated or revised by the Company, including?
national standards,
?industry standards and
?association standards
Data
Industry StandardEstablishment
The Company earnestly implements the national policy decisions regarding scientificand technological innovation and standardization. We actively engage in theformulation of international and industry standards, promote the dissemination andapplication of cutting-edge technologies, and share the achievements of innovation.
Hengyi Research Institute holds the annual meeting of nationalkey R&D programs
On May 30th, the annual academic exchange conference for the“Efficient Green Production and Industrial Demonstration of Bio-basedPolyamide Monomer and Materials”, the key project under "Green Bio-manufacturing" in the national key research and development plan,was successfully convened at Hengyi Research Institute. Scholars andexperts from various institutions including the Institute of Microbiologyof the Chinese Academy of Sciences, the Institute of ProcessEngineering of the Chinese Academy of Sciences, Zhejiang University,Donghua University, Hengyi Research Institute, Ningxia Eppen BiotechCo., Ltd, and Tianjin University of Science and Technology, cametogether to discuss the latest advancements in academic research andindustrial application progress related to polyamide monomers andmaterials. The exchange helped with the exploration of ways to developand apply bio-based materials in more new fields.
Case
In-depthUniversity-EnterpriseIntegration
Relying on various scientific and technological innovation platforms, including the ZJU-HengyiGlobal Innovation Research Center, the Joint Laboratory of Donghua University and Hengyi, ChinaChemical Fibers Association-Hengyi Foundation, the National Postdoctoral Research Station, theNational Enterprise Technology Center and the Key Laboratory of Textile Industry, Hengyi activelyexpands academic exchanges and cooperation with university scientific research institutes. TheCompany has forged deep partnerships with prestigious universities such as Zhejiang University,Donghua University, Nanjing Tech University and Zhejiang Sci-Tech University. Together, we'veestablished a "government-enterprise-university" synergy, fostering a talent developmentmechanism across the entire lifecycle based on the integration of "industry, academia, research,and application." This cooperation provides universities with technical and financial support forthe application of their research findings.
Hengyi Scholars Laboratory
The Hengyi Scholars Laboratory covers an area of
square meters, boasting top-notch facilities and cutting-edgeequipment. It encompasses various research domains from catalyst materials to national strategic needs. Drawing in leadingscientists and promising young talents at home and abroad, the laboratory has appointed
experts and professors as HengyiScholars including Xiao Fengshou, Hou Zhaoyin and Cheng Youwei from Zhejiang University, as well as Li Guang and ZhangQinghong from Donghua University.
Launch ceremony of Hengyi Scholars LaboratoryEngagement ceremony of Hengyi Scholars
Hengyi continues to promote the strategy of "Strengthening Enterprises with Talents", and iscommitted to strengthening talent cultivation and creating Accumulated stock purchases under thefifth phase of the ESPP Meanwhile, the Company focuses on the employees’ occupational health andsafety and provides health training and consulting activities to create a workplace conducive to boththe physical and mental health to enhance team cohesion and cultural identity. We are committedto creating a harmonious and cozy atmosphere and sharing development achievements withemployees.
Employees' Rights and InterestsOccupational Health and SafetyUnblocked Growth ChannelWarm care for employees
amounting to RMB
4.437
shares purchased under the fifth phase of the ESPP
366.84
million
billion
?employee training coverage rate
%
with EmployeesGrowing Together
2023 Actions and Responses
Employees'Rights andInterests
The Company attaches great importance to employees' rights and interestsprotection, strictly abides by relevant laws and regulations and adheres to theprinciples of lawful, equal and diversified employment. While gradually improvingthe remuneration and benefits system, we continuously improve the Company'sdemocratic management system, establish channels for employees' communication,and actively build a harmonious and stable labor relationship.Recruitment andEmployment
The Company strictly abides by the Labor Law, Labor Contract Lawand other laws andregulations, adopts a zero-tolerance attitude towards child labor and forced labor, andalways adheres to the principles of lawful, equal and diversified employment. In addition, theCompany actively builds a diversified workforce and strives to create a healthy and equalworking environment for all employees.
Data
Employeebenets
The Company continuously improves the working conditions and benefits for employees, andeffectively protects the rights and interests of every employee in various aspects, such asremuneration and benefits, social insurance, vacation and leave, labor protection, medical careand life support, etc. In 2023, the coverage rate of social insurance for employees was 100%.
Employees by age
Employees by genderEmployees by ethnic groups
Employees by educational background
Under 29 years old30-39 years old40-49 years oldOver 50 years old
College and belowBachelor's DegreeMaster's DegreePhD
FemalesMales
Ethnic minorities the Han
74.02
25.98
94.39%
5.61%
1,7653,858
5,391
4,534
1,959
13,271
Remuneration and Benets
We have developed an advanced and flexible incentive mechanism and competitive remuneration and benefits for ouremployees, and have implemented a wage negotiation mechanism, targeting scientific planning for salary growth, andinnovation in salary control mechanism, to promote a steady increase in the salaries of front-line employees.Social Insurance
Labor Security
Life Support
We ensure all social insurance are made on time and in full, and formulate several insurance plans for our employees,such as employer's liability insurance, group accident insurance, employees' medical mutual aid, supplemental medicalinsurance, etc. to improve the risk protection of our employees, and to safeguard their economic rights and interests.
We enhance smart manufacturing and standardize operating procedures to reduce the labor intensity of productionfront-line employees while effectively protecting employees' rights to take rests and ask for leave, especially front-lineemployees.
We provide employees with housing allowance, canteen and meal subsidies, workwear, free shuttle buses, etc., so thatemployees can live and work happily.
Turnover rate by age
35%
41%8%16%-----Under 29 years old-----30-39 years old-----40-49 years old----- Over 50 years old
Turnover rate by gender----- Male----- Female
31%
69%
Employee incentives
Staying true to the principle of win-win for both the Company and the employees, the Company adheres to the concept of"advancing development with joint efforts and shared joy", and endeavors to pool everyone’s energies to seek benefits foremployees, and create common prosperity.Based on the confidence in the Company's sustainable and stable development in the future and recognition of the long-term value, the Company implemented the fifth phase of the Employee Stock Ownership Plan (ESOP) in 2023, which furthermobilized the enthusiasm and creativity of the employees through the employee stock ownership, and at the same timeimproved the cohesion of the employees and the competitiveness.In accordance with the principle of voluntary participation, the fifth phase of the Employee Stock Ownership Plan covered atotal of approximately 3,600 employees of Hengyi and its subsidiaries, wholly-owned or holding companies. The total numberof shares purchased under the fifth phase of ESOP was 366.84 million, amounting to RMB 4.437 billion.
Case
15,548
employees in total,
employees withdisabilities,
overseas employees
females in middlemanagement
OccupationalHealth and Safety
With a high priority given to the physical and mental health ofemployees, the Company has formulated theRegulations on theOccupational Health Managementand continuously improved theinternal system related to occupational health and safety (OHS), andimplemented all aspects in accordance with the national standardsfrom occupational disease protection during the project constructionperiod to detection of occupational hazards, occupational healthcheckups, notification of occupational hazards, issuance of laborprotective equipment, training and education, removal of hiddendangers, establishment of occupational health files, etc. during theoperation period. During the reporting period, our 7 subsidiaries havepassed ISO 45001 Occupational Health and Safety ManagementSystem Certification.
?We set up a drugstore in the office area where all common medicines are prescribed and all kinds of health monitoringinstruments such as blood pressure meters for the production workshop are distributed.?We organize health checkups for new and old employees and employees of special work types, and conduct various kinds ofhealth lectures and free clinics from time to time.
Workers' CongressGrassroots political committees visit the site
Democraticmanagement
The Company has established and improved the workers' congress system, encouragedemployees to make suggestions and built diversified communication channels, such asworkers' congress, symposiums, questionnaire surveys, mailboxes, WeChat official accountand videos and other channels to respond to their demands in a timely and effective manner.We have also established the "Hengyi Seniors" grass-roots political committee mechanismand deepened the mechanism of sound suggestions to promote the management level.The elected "Hengyi Seniors" go deep into the frontlines, listen to and collect their opinions,participate in grassroots governance, and continue to provide advice and suggestions forenterprise management.
%Labor Union Participation
Cases of OccupationalDisease
Collective ContractSigning Rate
%
UnblockedGrowth Channel
Highly valuing talent cultivation and development, the Company isdedicated to broadening career development channels, providingemployees with diversified and customized development paths, andguaranteeing that employees acquire knowledge and skills in theircareers and grow with the Company.
Building a strongtalent pool
The Company leverages rich internal and external learning resources to promote talenttraining and business team growth, and flexibly adopts a combination of online and offlinetraining programs to build a strong talent pool.“Talent Reserve Project” —— New Blue Program
Lectures on Industrial Technology
Hengyi University’s Online Platform
In 2023, we systematically recruited and trained more than 100 new college graduates. The training covers topics such as on-boarding training, factory internship, mentoring, business trials, and periodic review.External experts were invited to carry out a series of lectures, "Industry Lecture Hall", "Lean Classroom" and other flagship courseswere organized, covering process technology, technological frontiers, industry dynamics and so on. Front-line employees areallowed to work with certifications, injecting momentum into the industry advancement.Hengyi Univesity’s online platform has been operating for 6 years, with more than 5,000 learners and 370 courses covering variousdimensions such as professional competence, leadership and management, general ability, and professional knowledge. Ouremployees’ online learning hours have exceeded 40,000 hours.
?We provide different protective gears for employees according to different job types and labor environments, and supervise theuse of labor protection gears on site every day.?We regularly carry out education and training activities on the prevention and control of occupational diseases to effectivelyimprove employees' skills of protection.?We formulate an annual plan for monitoring occupational disease hazards in the workplace, set up monitoring points for suchhazards, and file the evaluation results.
%OHS Participation
%Physical ExaminationCoverage
%Health & SafetyTraining Coverage
hoursAnnual traininghours per employee
%Trainingcoverage rate
Opening up careerdevelopmentchannels
The Company has established a three-channel career development path, and formulatedthe Job Title Management Systemto continuously broaden channels for management,professional, and operational talents. We have adopted a differentiated evaluationmechanism. On the premise of ensuring fair promotion opportunities and improvingscientific and rational evaluation, we aim to achieve scientific recruitment practices andempower employees to realize their life values and dreams.Standardizing job level management and unblocking talentdevelopment channelsThe Company has established three talent series: management, professional, and operational, encouraging cross-appointment among talents. Specifically, the management includes 11 job levels, 10 for the professional, and 4 for theoperational staff. Each year, the Company formulates an annual employee promotion plan based on the development plans,staffing, job situations, and needs of each functional department/subsidiary, as well as the development of the employees.Additionally, on the basis of the plan, we organize the evaluation for promotions and job appointments through organizationalrecommendations, open competitions, and self-nominations of employees etc. This process involves the determination andadjustment of job levels.
Case
Continuing Education of frontline staff
Vocational Aptitude Test
The Company has partnered with Zhejiang University of Technology, Zhejiang Radio and Television University (Xiaoshan College),technical schools and other colleges to set up academic upgrading classes, providing employees in various positions with theopportunity to further their education, and cultivating a group of "Hengyi Craftsmen".Relying on the first batch of pilot units of national vocational skill level certification in Xiaoshan District, the Companysystematically carries out internal certification for employees, promotes training through competitions, and organizes technicalcompetitions. Up to now, more than 4,000 people have been certificated, and 715 employees have obtained vocational skillscertification in 2023.
New Blue ProgramVocational Aptitude TestSkill Competitions
Cultivation of Professional Sales ForceThrough training on product knowledge, sales case development, and sales case competitions, we have produced sales productcourses, typical cases and courses, cultivated the sales force into internal lecturers to increase their competence, and improvedthe talent cultivation system.
Warm care foremployees
The Company is committed to building the "Hengyi Family" culture andcreating different cultures covering team building, seniority, workers’ familyand dormitory. We establish more than 10 associations, such as calligraphy,painting and photography clubs, and regularly organize the "Hengyi Cup"Basketball League and athletic games, as well as a series of events suchas the Apartment Neighborhood Festival, and the "Love Each Other" YouthDating, to boost employee happiness index, enhance the cohesion andcentripetal force of the enterprise. This helps the Company not only becomea career platform for employees to grow, but also a spiritual home thatcarries happiness and dreams. Organizing diversied activitiesCase
Apartment Neighborhood Festival"Hengyi Cup" Basketball League
Setting up the “Mommy’ Hut”CaseIn 2023, Zhejiang Yisheng, a subsidiary of Hengyi, set up a “Mommy’Hut” to provide a safe, comfortable and resting place for pregnant andbreastfeeding female employees, and was awarded the "Four-star MommyHut" in Beilun District.
Caring for employees with disabilitiesCaseThe Company declares mutual medical care and free medical checkups for all disabled employees, and signs a contractwith Yaqian Township Health Center for the "Family Doctor" program, so that disabled employees can benefit frommedical treatment. Besides, the Company declares charitable aid for disabled employees in difficulty and visits them tosecure their normal work and life.The Company continues to hold quarterly general meetings for employees with disabilities, and conducts seminars forteam leaders to be informed of their working status and difficulties. According to their different physical conditions, wearrange suitable jobs for disabled employees and opens green channels for them in their work and life. On China LodineHelp the Disabled Day, the Company carries out a series of cultural, sports, training and other activities to enrich the sparetime life of employees, and selects 10 "Self-improvement Stars" and awarded them material and spiritual honors.
Committed to the charity cause, the Company actively participates in volunteer services, educationdonations, community building and other types of public activities and provides assistance forgroups in need of help. To promote the healthy development of the community, we willingly shoulderour responsibilities, and contribute our efforts to a harmonious and better society.
Rural VitalizationCommunity CharityContribution to the BRI
donated to the Red Cross Society of ChinaWuzhong Branch, Ningxia in 2023
participants in the blood donation since 2002
2023 Actions and Responses
million
5,628
cumulative donations
million
donated to Beilun District CharityFederation in 2023700,000
1,556,400mlblood donated in total
Community With A Shared FutureBuilding Harmonious
RuralVitalization
CommunityCharity
To support rural revitalization and common prosperity, the Companyleverages its service expertise to assist people in underdevelopedareas and the surrounding regions by continuously investing ineducation assistance and industrial vitalization. Thanks to theseefforts, those underdeveloped areas can act on their own, stimulatingthe development potential of the countryside.
The Company focuses on shaping friendly, mutual help, civilized and harmoniousneighborly relations to create a harmonious and stable social and humanisticenvironment. We have carried out a series of charitable projects for manyyears by sponsoring street cultural activities, and activities in the surroundingcommunities and schools. Employees are encouraged to participate in a widerange of public activities, contributing their efforts to a harmonious society.
Supporting education vitalization
Diverse funds established to support charity
Voluntary Blood Donation
The Company has increased its support to drive the educational development. RMB 6 million was donated to the Red CrossSociety of China Wuzhong Branch, Ningxia in 2023 for the construction of Hongde Hope School in Hongsibao District,Wuzhong City, Ningxia, and the cumulative donation has reached RMB 30 million. All the donations for the project havebeen completed, pushing forward the consolidation of the results of poverty alleviation and rural vitalization.
Since 2016, the Company has established funds for environmental protection, new era civilization practice, "commonwealth and happy home" specially used for assistance of the people in need, student aid, medical care and environmentalprotection programs, volunteer services and village-enterprise pairing assistance, etc. The total amount of donations tothe Beilun Charity Federation in 2023 reached RMB 700,000.
On August 2, 2023, Hengyi held the 22nd collective blooddonation activity. 265 employees donated 88,010 ml ofblood on that day, interpreting responsibility and lovewith action. Over the 22 years since 2002, when Hengyifirst organized the collective blood donation activity forits employees, the Company has actively called for andcarried out blood donation activities in an orderly manner,and a total of 5,628 employees have contributed theirefforts to blood donation.
Case
Case
Case
Contributionto the BRI
The Company embraces the national "Belt and Road" Initiative (BRI)by delving into the development needs of countries along the route.Leveraging our resources, we actively contribute to the developmentof the "Belt and Road Initiative", helping Chinese enterprises establishtheir global presence.Building the Hengyi (Brunei) PMB PetrochemicalProject as an example of the BRIThe Hengyi (Brunei) PMB Petrochemical Project, a collaborative effort of Hengyi, the Brunei government and its people,stands as the pioneering private refinery and chemical project for Hengyi as we strive for international production capacityand the implementation of China's "Belt and Road" Initiative. This project is among the first group of key developmentprojects under the BRI. In 2023, the project was selected into the list of Top 100 Best Practices over the Past Decade of theBelt and Road Cooperation by Chinese Listed Companies by the China Association for Public Companies in 2023.
Hengyi (Brunei) PMB Petrochemical Project
Case
Local MarketDevelopment
Local TalentsCultivation
The Company leverages its industrial, managerial, and construction strengths to continuouslyexplore pathways for local production and operations. We focus on implementing strategiesand planning in Brunei and its neighboring regions, with Malaysia and Singapore servingas core procurement markets. Emphasizing localized procurement, we actively conducttraining for contractor visitors to deepen operational localization and firmly establish ourpresence in the local market.
The Company carries out a "university-college-enterprise" model to train local petrochemicaltalents in Brunei. We have specifically promoted the establishment of three specializedtalent development programs: the "Zhejiang University- Universiti Brunei DarussalamJoint Training Program", the "Institute of Brunei Technical Education (IBTE) and LanzhouPetrochemical University of Vocational Technology (LPP) Joint Training Program", and the"Institute of Brunei Technical Education (IBTE) and Hengyi Industries Joint Training Program".These initiatives offer full scholarships and aim to nurture petrochemical talents at variouslevels within Brunei.
Supporting the Local Product Expo 2023
As one of the sponsors of the Brunei’s Local Product Expo, theCompany supports the Local Product Expo 2023 by sponsoringbooths for 10 local micro and small enterprises to promote thedevelopment of local industries.
Case
The ZJU-UDB Joint Training Program for first-year chemical engineering students at UBD has enrolled a total of 187 studentsin 11 sessions as of the end of the reporting period, of which 117 were employed.
The IBTE-LPP Joint Training Program has enrolled a total of 142 students in 5 sessions as of the end of the reporting period, ofwhich 47 were employed.
UBD-ZJU Scholarship Program
IBTE-LPP Scholarship Program
Data
A total of2,699overseas contractors invited to complete
visits, exchanges and safetytraining based on the needs of the Company's overseas contractors
Public WelfareOverseas
Hengyi is actively fulfilling its corporate social responsibility by setting up the CSR Committee andCSR Fund. Operating in a standardized and transparent manner, the Company focuses on key areassuch as poverty allevation, education development, and social welfare. We engage in overseasphilanthropic endeavors, contributing to the friendship between China and Brunei.Charity in Ramadan
Supporting YASKA Hope in Motion charity obstacle run
Ramadan donation is a part of Hengyi Cares Initiative, a corporate social responsibility endeavor that is designed to giveback to society and alleviate the burdens of those in need, including families and orphans. Throughout the Ramadanperiod, the Company mobilized employees to visit local communities with paired assistance, providing comfort goods toimpoverished families. Specifically, donations were made to 8 struggling households and 10 orphans in Serasa village.
As the title sponsor of Yaska Brunei's charity events, the Company has participated in many social initiatives such asraising funds for Brunei's cancer-stricken children, which is an important part of the Hengyi Cares Initiative.
Case
Case
Local Education Programs in BruneiHengyi Industries Sdn Bhd cooperated with Politeknik Brunei (PB) and IBTE to offer 8 petrochemical-related majors, with 576students enrolled as of the end of the reporting period, of which 41 were employed.
Prospects
We focus on our ongoing dedication to steer a bright future. 2024 marks the 75th anniversary of the People’s Republic of China. It isalso a crucial year for implementing the 14th Five-Year Plan. Hence, the significance of performing all our tasks cannot be overstated.Moving forward, Hengyi will steadfastly advance the Group’s mission of “building a century-old, evergreen foundation and stand amongthe world's renowned enterprises”. Upholding the principle of “Relentless Pursuit of Excellence”, we will enhance our high-qualitydevelopment level and overall strength. Focused on cultivating high-tech, high-efficiency, and superior-quality new quality productiveforces, we aim to propel Chinese modernization with innovative concepts for a new era.
We champion green and low-carbon philosophy in harmony with nature. We will remain dedicated to green, low-carbon, andsustainable development that prioritizes environmental protection as fundamental to our sustainability, continually aligning ourproduction with the surrounding natural ecology to create green factories. While ensuring our operational and environmentalperformance, we will improve environmental conditions around our factories and explore strategies for carbon reduction and resourcemanagement. While actively addressing climate change, through ecological compensation and restoration projects, we will protectbiodiversity and green ecology, consistently fulfilling our environmental protection responsibility.
We promise to offer superior services and trustworthy quality. Upholding artisanal excellence and customer-centric principle, we willfurther boost comprehensive quality management and maintain strict safety standards. By increasing our investment in technologicalinnovation, we will deepen our strategic focus on growing into a technological Hengyi. We will improve our customer service systemand elevate our service quality and efficiency to satisfy diverse customer needs. Through high-quality and high-value products, weaspire to invigorate the high-quality development of both Hengyi and the industry with fresh energy and momentum.
We aspire for a better society via win-win endeavors. Embracing mutual benefit, we respect the value of every employee, ensureequal employment, care for employees, and unblock their growth channels. We are dedicated to building a responsible supply chain,enhancing supplier compliance management, and fostering a transparent, responsible supply chain ecosystem with our suppliers. Wewill promote and organize diverse public welfare activities, pay attention to and boost local employment and industry development,contributing to rural vitalization and a harmonious society.
IndicatorUnit202120222023Operating incomebillion129152.1136.1
Total assetsbillion105.5112108Production capacity10,000 tons3,8473,8774,161.5
- Chemicals10,000 tons265265265
-Rened oil10,000 tons565565565
-PTA10,000 tons1,9001,9002,150-PIA10,000 tons303030-Polyester ber10,000 tons777807751.5- PET（including RPET）10,000 tons270270360- Caprolactam10,000 tons404040Quality inspection pass rate%100100100Customer satisfaction after sales%959799
ESG Key PerformanceAppendix
Economic Performance
Social Performance
IndicatorUnit202120222023
Total number of employeesheadcount16,82015,63715,548Percentage of female employees %26.1726.3725.98
Labor contract signing rate%100100100
Social insurance coverage%100100100Percentage of ethnic minorities
employees
%6.457.155.61Female in senior managementheadcount332Female in middle managementheadcount165162148Total amount of employee stock
ownership plan
billion13.9313.9344.37Total shares purchased share 113,754,600113,754,600366,840,000Benefited employeesheadcountApproximately 4,000Approximately 4,000Approximately 8,000Training hours per employee per yearhour10498116Occupational health examination
coverage
%8080100Reported accidentscase000Fatalities from safety accidentsheadcount000Safety training hours per employeehour121215
Environmental PerformanceIndicatorUnit202120222023
Carbon dioxide emissions10,000 tons909911809Carbon dioxide emissions intensitymillion tons/RMB billion 0.07 0.06 0.06Consumption of crude oil10,000 tons828864819Consumption of natural gas10,000 cubic meters4,6014,4434,120Consumption of electricity10,000 kWh763,655649,377355,412Consumption of coal10,000 tons205210280Consumption of coal water slurry10,000 tons694126Photovoltaic power generation10,000 kWh2,5804,4206,514Emission intensity of mercury and its
compounds
mg/m
0.00000760.0000430.000070Notes:
Carbon dioxide emissions intensity = Carbon dioxide emissions / Operating revenueThe data for 2021 and 2022 do not include Zhejiang Yisheng and Hengyi Brunei. Starting from 2023, the company will include these companies in the scopeof disclosure.
GRI StandardsPage
GRI2 General Disclosures2-1Organization detailsP7-P92-2Entities included in the organization’s sustainability reportingP32-3Reporting period, frequency and contact pointP32-4Restatements of informationP92-6Activities, value chain and other business relationshipsP7-82-7EmployeesP56-P632-9Governance structure and compositionP12-P132-10Nomination and selection of the highest governance bodyP132-11Chair of the highest governance bodyP132-12
Role of the highest governance body in overseeing the management of
impacts
P132-16Communication of critical concernsP132-26Mechanisms for seeking advice and raising concernsP15-162-27Compliance with laws and regulationsP142-29Approach to stakeholder engagementP22-23
GRI3 Material Topics3-1Process to determine material topicsP20-P213-2List of material topicsP213-3Management of material topicsP21
GRI 201 Economic Performance201-1Direct economic value generated and distributed/201-3Defined benefit plan obligations and other retirement plansP9
GRI 203?Indirect Economic Impacts203-1Infrastructure investments and services supported/203-2Significant indirect economic impacts/
GRI 205 Anti-corruption205-1Operations assessed for risks related to corruptionP15205-2Communication and training about anti-corruption policies and proceduresP15205-3Confirmed incidents of corruption and actions takenP15
GRI 302 Energy302-1Energy consumption within the organizationP27-28302-3Energy intensityP27-28
Report Content Indexes
GRI Content Index
GRI 303 Water and Effluents303-2Management of water discharge- related impactsP32,P33303-3Water withdrawalP32303-4Water dischargeP33303-5Water consumptionP32
GRI 305 Emissions305-4GHG emissions intensityP27305-7Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissionsP33
GRI 306 Waste306-1Waste generation and significant waste-related impactsP34-P35306-2Management of significant waste-related impactsP34306-3Waste generatedP35306-4Waste diverted from disposalP35306-5Waste directed to disposalP35
GRI 401 Employment401-1New employee hires and employee turnoverP59401-2
Benefits provided to full-time employees that are not provided to temporary
or part-time employees.
P58-P59GRI 403 Occupational Health and Safety403-1Occupational health and safety management systemP60403-2Hazard identification, risk assessment and incident investigationP60-P61403-3Occupational health servicesP60-P61403-5Worker training on occupational health and safetyP42-P43403-6Promotion of worker healthP38-P43,P60-P61403-7
Prevention and mitigation of occupational health and safety impacts directly
linked by business relationships
P38-P43403-8Workers covered by an occupational health and safety management systemP60403-9Work-related injuriesP38403-10Work-related ill healthP60-P61
GRI 404 Training and Education404-1Average hours of training per year per employeeP61404-2Programs for upgrading employee skills and transition assistance programsP61-P62
GRI 405 Diversity and Equal Opportunity405-1Diversity of governance bodies and employeesP13,P58
GRI 409 Forced or Compulsory Labor409-1
Operations and suppliers at significant risk for incidents of forced or compulsory
labor
/GRI 413 Local Communities413-1
Operations with local community engagement, impact assessment, and
development plans
P66-P69413-2
Operations with signicant actual and potential negative impacts on local
communities
/GRI 414 Supplier Social Assessment414-1New suppliers that were screened using social criteriaP48
GRI 416 Customer Health and Safety416-1Assessment of the health and safety impacts of product and service categoriesP43-P45
CodeIndicatorPage
RT-CH-110a.1Gross global Scope 1 emissions, percentage covered under emissions-limiting regulationsP27RT-CH-120a.1
Air emissions of the following pollutants: (1) NOX (excluding N2O), (2) SOX, (3) volatile organic
compounds (VOCs), and (4) hazardous air pollutants (HAPs)
P33RT-CH-130a.1
(1) Total energy consumed, (2) percentage grid electricity, (3) percentage renewable, (4) total
self-generated energy 2
P27-28RT-CH-140a.1
(1) Total water withdrawn, (2) total water consumed, percentage of each in regions with High
or Extremely High Baseline Water Stress
P32RT-CH-140a.3
Description of water management risks and discussion of strategies and practices to mitigate
those risks
P32RT-CH-150a.1Amount of hazardous waste generated, percentage recycled-RT-CH-210a.1
Discussion of engagement processes to manage risks and opportunities associated with
community interests
P66RT-CH-320a.1
(1) Total recordable incident rate (TRIR) and (2) fatality rate for (a) direct employees and (b)
contract employees
P60RT-CH-320a.2
Description of efforts to assess, monitor, and reduce exposure of employees and contract
workers to long-term (chronic) health risks
P60-P61RT-CH-410b.2
Discussion of strategy to (1) manage chemicals of concern and (2) develop alternatives with
reduced human and/or environmental impact
P50-P52RT-CH-530a.1
Discussion of corporate positions related to government regulations and/or policy proposals
that address environmental and social factors affecting the industry
P31RT-CH-540a.1
Process Safety Incidents Count (PSIC), Process Safety Total Incident Rate (PSTIR), and
Process Safety Incident Severity Rate (PSISR)
P38
SASB Index
Feedback SheetDear readers,Thank you for taking the time to read the 2023 ESG Report of Hengyi Petrochemical Co., Ltd. amidst your busy schedule. To providemore valuable content to stakeholders and keep improving our report preparation and ESG performance, we sincerely invite you toleave your opinions and suggestions by the following ways
1.For Hengyi, what category of stakeholders do you belong to:
2.You evaluation of this report:
3.What other opinions or suggestions do you have regarding this report or our CSR practices?
Tel.:
E-mail：
Address：
□Government□Shareholder/Investor□Employee□Customer□Supplier□The public
□
□
Social organization/non-governmental organizationAcademic/researchinstitutionsIndustry association/partner□
□Media□Other ( )
Report structureWordingInformation disclosureLayout designOverall evaluation
Very good Good Average Poor□
□
□
□
□
□
□
□
□
□
□
□
□
□
□
□
□
□
□
□