ENN Natural Gas Co., Ltd.Environmental, Social AndGovernance Report
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020ENN Natural Gas Co., Ltd.
ENN Natural Gas Co., Ltd.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020ENN Natural Gas Co., Ltd.
About This ReportMessage from The ChairmanThis is the first Environmental, Social and Governance (“ESG”) Report (hereinafter referred to as“this report”) of ENN NaturalGas Company Limited. This report reflects how ENN Natural Gas works to fulfill its economic, social and environmentalresponsibilities to achieve sustainability and responds to issues of general interest to stakeholders. The Company’s Boardof Directors has reviewed this report and is responsible for the authenticity and validity of the information contained.Reporting PeriodThe content of this report covers the period from 1 January to 31 December, 2020. The time period may be extended forsome of the contents.Scope of This ReportThis report focuses on ENN Natural Gas Company Limited and its subsidiaries.Data SourceAll the information and data expressed herein come from the Company’s official documents, statistical and financialreports and ESG information collected, compiled and reviewed by the Company. This report is published in Chinese andEnglish. If there are any discrepancies between the two versions, the Chinese one shall prevail. Unless otherwise specified,the currency unit is RMB.Preparation BasisThis report is formulated according to the requirements of theShanghai Stock Exchange Information Disclosure Guidelineson Environmental, Social Responsibility and Corporate Governance for Listed Companies (draft for comment)and theEnvironmental, Social and Governance Reporting Guide (“ESG Guide”) under the Appendix 27 of the Listing Rules of theHong Kong Exchanges and Clearing Limited (“Stock Exchange”)Listing Rules.Reporting Speci?cationsFor ease of presentation and reading, ENN Natural Gas Company Limited is hereinafter referred to as“ENN-NG”,“theCompany”and/or“We” in this report.Access to This ReportThis report is available for browse and download at the website of Shanghai Stock Exchange (www.sse.com.cn) and theCompany’s website (www.enn-ng.com).
In recent years, the United Nations has held a series ofconferences on climate change to encourage countries toaddress environmental challenges together. As a result,many countries have pledged to achieve carbon neutralityby 2040 to 2060. In 2020, President Xi Jinping firstproposed at the seventy-fifth session of the UN GeneralAssembly, that China will scale up its Intended NationallyDetermined Contributions by implementing more vigorouspolicies and measures, peak its CO
emissions before 2030,and go all-out to achieve carbon neutrality by 2060. Lateron, President Xi talked about China’s carbon neutrality goalin various international meetings and conferences to showthe country’s determination to tackle climate change.Energy transition is fast rising as fossil fuels are exploitedcleanly, clean energies are utilized in large-scale andmultiple energy sources are combined to moderate theenvironmental footprint. The shift towards a green, low-carbon energy mix has become a global consensus.The popularity of the concept of“responsible investment”
in the capital market has rendered corporate ESGperformance more important in investment decision-making. We are publishing the first ESG report of ENNNatural Gas Company Limited to respond to the capitalmarket, communicate better with stakeholders, andsummarise our work in ESG management in 2020.We keep improving ESG management, deliver better ESGperformance, and make ESG work an inseparable partof our daily operations. The Environmental, Social, andGovernance Committee (“ESG Committee”) is establishedat the level of the Board to oversee ESG work acrossthe Company. The ESG working group, which consists ofimportant functional departments is also founded.
We remain committed to building a green ecology bymaking technological innovations and working on low-carbon and environmentally friendly energy solutions tosolve the challenges of climate change. We perform everyeffort to reduce the discharge of effluent, exhaust gas,and solid waste produced during operation and improveenergy use efficiency. Biodiversity protection is also one ofour priorities. Moreover, the whole project cycle is strictlymonitored to prevent potential ecological damage.The safety mechanisms and risk control measures are inplace to ensure the safety and health of our employeesand that safety accidents are greatly moderated. Weprovide special protection for employees according to theirpositions and their health conditions are well monitored.All these activities serve to protect both physical andmental well-being of our employees.In addition, suppliers are encouraged to improve theirESG performance, produce higher-quality products,provide greater customer satisfaction, broaden industrycooperation and contribute to local communities.In 2020, the Company seized upon new, excitingopportunities and completed the major asset restructuringprogramme. It was strategically positioned as a“smart andecological operator in the natural gas industry”. Climatechange usually brings new opportunities apart from severechallenges. We hope to work with all the stakeholders indifferent industries, through exploring new technologiesand innovative managerial practices, to address the climatecrisis and build a brighter future.Chairman of the Board of Directors of ENN Natural Gas
Company LimitedWang Yusuo
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020
Sustainability ManagementENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020
ENN Natural Gas Company Limited(“ENN-NG”; stock code: 600803)is among the first group of listedcompanies in Hebei Province. After astrategic restructuring programme, weshaped an all-encompassing businessstructure that covers all scenarios ofthe natural gas sector. Our goal is to bea smart and ecological operator in theindustry.Centered on the whole scenario inthe natural gas industry, ENN-NG hasbuilt a smart industry platform toempower our ecological partners viasmart products. We have also shapednational and regional digital ecosystemsfor demand, resources, storage andtransport of gas and engineeringcapacity, so as to intelligently matchedthe market with resources, transmissionand distribution of gas, and engineeringtechnologies, and boosted the naturalgas ecosystem for greater prosperity.
2020
Total Sales Volume of Gas
Fitch upgraded the international ratingfor our company to BBB-, and assigneda stable outlook. (October 2020)Moody’s upgraded the internationalrating for our company to Ba1, andassigned a stable outlook. (February2021)
RMB109,523.85
Million
30.51
Billion Cubic Meters;
12.6% Year-on-year Increase
Total Assets
About Us
ENN-NG won the Best Practices Awardfor Corporate Social Responsibility
ENN-NG won the NationalOutstanding Performance Award
ENN-NG won the Tienyow Jeme
Civil Engineering Prize
VisionBased upon the business scenariosof ENN-NG, we harness the IoT topower intelligent applications andmake effort to promote industryupgrading. Ultimately, we aim to be asmart and ecological operator in thenatural gas industry.
The Way of ENN-NGRely on Customers; CollaborativeSuccess; Joint Creation ofEcosystem
MissionWe utilise intelligent industryapplications to strengthencapacity building, deliver successto our customers, help themcreate long-term value and achievesatisfactory results.ValuesHonour Integrity; Respect Self-Driven Capability; Value Data;Ready to Share
ENN Natural Gas Co., Ltd.ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020
SustainabilityManagement
Sustainability Management
ENN-NG remains committed to the core valuesof sustainability that guide our investmentdecision-making and business operations.We produce responsibly, improve corecompetitiveness and expand the pathway tosustainable development in order to createvalue for shareholders, customers, employees,and society.
Sustainability ManagementENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020
Sustainability ManagementENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020
ESG Management
Corporate GovernanceENN-NG has strictly followed all relevant laws, regulations,and guidelines including theCompany Law of thePeople’s Republic of China, theSecurities Law of thePeople’s Republic of China, and theCode of CorporateGovernance for Listed Companies. The Company hasestablished a corporate governance organization andoperation mechanism composed of the General Meetingof Shareholders, the Board of Directors, the Board ofSupervisors, and the Senior Management team. Thecompany has shaped a rule-based and well-balancedgovernance system with clearly defined authorities andresponsibilities among the decision-making body, thesupervisory body, and the management team. The Boardof Directors, accountable to the General Meeting ofShareholders, deliberates and approves the importantmatters in the Company’s business activities and makesdecisions or reports the matters to the General Meetingof Shareholders for further discussion. The Board ofSupervisors is responsible for supervising the behavioursof the directors and the management, and the Company’sfinancials. The Co-CEO, president, and other executives areappointed by the Board of Directors; they are responsiblefor the Company’s daily operations and management underthe leadership of the Board of Directors. In accordancewith the relevant laws, regulations, and regulatory policies,the Company has established and will gradually improvethe corporate governance system based on our operationdemands. TheArticles of Associationare the core of thegovernance system, which also encompasses theRules ofProcedure for the General Meeting of Shareholders, theRules of Procedure for the Board of Directors, theRulesof Procedure for the Board of Supervisors,and otherapplying rules of special committees. The system hasprovided an institutional guarantee for the Company’s
ESG ManagementThe Company has established ESG Committe to take ESG performance into account fordecision-making and daily management. The Board and the senior management wouldhold regular meetings to supervise the progress of the following tasks, including theformulation of ESG strategies and goals, risk control, communication with stakeholders,and analysis of major issues. In addition, the ESG Committee set up the ESG workinggroup as the executive team to fully implement ESG work. The Company has given clearresponsibilities to departments at different levels and encouraged them to carry out thetasks given to them, as well as involving more employees in ESG work, so as to implementthe overall planning and management of ESG
ESG Working GroupGroup Leader: President
ESG Intermediary Working Group
General Manager and ESG Leader ofBusiness Self-Driven Organisations
Investor Relations(IR) Director
Party & Masses Affairs Office
Customer Perception and productDevelopment Facilitator Group
Financial and Valuecreation OperationFacilitator Group
Alliance and Acquisition Department
Talent Stimulation Facilitator Group
Technology and Innovation Facilitator Group
QHSE Facilitator Group
Business and Legal Affairs Facilitator Group
Risk-prevention Facilitator Group
Investor Relations Group
Brand Development and CommunicationFacilitator Group
Administrative and Social ConnectionsFacilitator Group
Human Resources(HR) Director
QHSE DirectorBrand Director
Technology Director
Secretary of theBoard
CFO
? ESG Working Group Framework
rules-based operations. Under the Board, there areStrategy Committee, Audit Committee, Remunerationand Evaluation Committee, Appointment Committee,Connected Transactions Control Committee, andEnvironmental, Social, and Governance Committee (“ESGCommittee”). These special committees study majormanagement matters, give comments and suggestionsfor decision-making, assess and improve managementmechanisms and business processes, as well as supervisethe implementation of the resolution. During the reportingperiod, the special committees worked in line with theArticles of Associationand theRules of Procedure for theBoard of Directors, fulfilled the responsibilities given bythe Board, and provided opinions to guide the Company’ssustainable development. They have contributed greatlyto improving the corporate governance structure andpowering the Company’s growth.Board of Directors
Strategy Committee
Audit Committee
Remuneration andEvaluation Committee
Appointment CommitteeConnected TransactionsControl Committee
ESG Committee
Sustainability ManagementENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020
Anti-Corruption
Building a Clean Governance Corporate Culture
Whistle-blowing and Complaints Management
ENN-NG has committed to building a clean governance corporate culture for years. In 2020, theCompany drafted theClean Governance Agreementand required all member companies andexternal partners to sign it. By the end of 2020, 2,597Clean Governance Agreementswere signed.The Company issued and implemented the Business Integrity and Compliance Code of Conduct
and required all the employees to sign the document,to give their commitment of conduct,so as to enhance the bottom line mentality. Furthermore, the Company organised a series ofeducational activities that feature violations against anti-corruption guidelines, so that executivesand employees could raise their awareness of risk and discipline to build a resilient mental defenseagainst corruption.
ENN-NG has adhered to the principle of anti-corruption since its establishment to build a clean andhonest business environment and corporate culture so that employees and executives are afraid,unable, and unwilling to involve in corruption. Our partners are encouraged to stay responsible andconscientious and preserve the bottom line of compliance at ENN-NG. The Company establishedan independent anti-corruption department that serves as the third defense for compliancemanagement. The department helps build a clean governance culture and offer relevant training. Itis responsible for receiving and handling whistleblowing and complaints concerning corruption, andconducting the auditing and supervision work, to ensure the Company’s compliance operations.
ENN-NG has formulated theComplaint Management Measuresthat standardise the handling process of complaintsand strictly implemented them in accepting and investigating the daily complaints to ensure timely, fair and reasonablesettlement of complaints. The Company has set up several reporting channels such as the anti-corruption hotline, e-mail,SMS, QQ, and WeChat. Employees were informed of these channels by the intranet platform, office bulletin boards, andeducation courseware, so that violations would be reported in time. Moreover, the Company takes effective measures toprotect the safety of whistle-blowers.
In March 2020, ENN-NG required member companies to provideunified whistle-blowing bulletin boards in conspicuous placessuch as the office area, production plants and workshops, so as toexpand and facilitate the internal and external channels for whistle-blowing and complaints as well as involving employees and externalpartners to fully play their supervisory role. The bulletin boardscontain a greater variety of channels including the hotline, emailaddress, SMS, QQ and WeChat. By the end of 2020, 100% of ENN-NG’s business scenarios had displayed the whistle-blowing bulletinboards.
ENN-NG asked its member companies to extensively display thewhistle-blowing and complaint channels
Compliance ManagementENN-NG rigorously follows industry laws and regulations,ensures legitimate compliance management, continues toimprove compliance management in combating corruptionand unfair competition, remains conscious of the bottom linefor compliance work, and promotes responsible managementpractices.In 2020, the Company conducted self-evaluation of internalcontrol system subject to theBasic Standards for EnterpriseInternal Controland theEvaluation Guidelines for EnterpriseInternal Controljointly issued by the Ministry of Finance andthe China Securities Regulatory Commission. The holdingcompany of ENN-NG and its member companies underbusiness segments were required to conduct self-evaluationin areas such as strategy planning and management, HRmanagement, corporate culture, social responsibility, financialmanagement, procurement management, managementof construction projects, contracts management and legalaffairs, research and development, and management ofinformation system. The results showed that a thoroughinternal control system was in place and implementedeffectively during the reporting period, which assuring thehealthy development of the Company.We also carried out compliance risk identification andauditing for different positions. In 2020, we reviewed theproblems found by audit inspection in history, identifiedpositions relevant to risk management including finance,procurement, engineering, and HR, and prepared specific
training programmes accordingly. Meanwhile, we providedspecialised warning training to employees in key riskpositions in major member companies and combined thetraining with auditing programme, In this way, we couldforestall any potential risks and combine early warning withaccountability. We also requested the relevant departmentsto immediately modify any problems identified in the auditingand supervision process and track the rectification progressto make sure the problems were well addressed.The Company attaches great importance to compliancemanagement by developing and promoting digital riskwarning products and continuously strengthens theeducation to warn against corruption by presenting violationcases to employees. We also conducted specialised auditingand supervision to identify weak points among compliancemanagement during business process, and made every effortto ensure that the rules or mechanisms were in place.
2,597
Clean GovernanceAgreements weresigned by the endof 2020.
Whistle-blowing Bulletin Boards of ENN-NG
Sustainability ManagementENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020
StakeholdersExpectationsCommunication ChannelsResponses
Partners
?Adhere to businessethics
?Open, fair and equitableprocurement
?Win-win and sharedprogress
?Disclose procurementinformation
?Negotiate and communicate
?Build e-commerce platformsand partner alliances
?Open tendering
?Build a supplier managementsystem
?Improve policies constantly
?Formulate environmentalplanning
Environment
?Environmentalgovernance
?Environmentalprotection
?Disclose information ofgreen operations
?Launch environmentalactivities for public welfare
?Implement environmentalplanning
?Enhance management ofenergy saving and emissionreduction
?Improve energy efficiency
?Extend the use of green andclean energies
?Implement green officing
?Carry out environmentalmonitoring
?Actively engage inenvironmental activities
Community
?Community publicservices development
?Create more jobs
?Communication andcooperation
?Panel discussion
?Participate in communityvolunteer activities andawareness campaigns
?Make donations to charity
?Dedicate to public welfare
?Build harmoniouscommunities
?Alleviate poverty and helppeople in need
?Participate in communityvolunteering
Media
?Informationtransparency
?Smooth communicationchannels
?Maintain sound mediarelations
?Press conference
?Site visits for media
?Interview with themanagement
?Hold the press briefingregularly
?Press releases
?Respond to media enquiry
?Communicate with the media
Communication with StakeholdersStakeholders are interconnected with a company’s development. ENN-NG values the expectations and demands of ourstakeholders and take them as valuable guidance for ENN-NG’s sustainability work. We have actively communicatedwith all the stakeholders via multiple channels, listened to their needs and expectations, and accepted theirsupervision. In 2020, we used the social media platforms, WeChat public accounts and emails to communicate withinternal and external stakeholders, and respond to their concerns.StakeholdersExpectationsCommunication ChannelsResponses
Investors
?Share the Company’sperformance
?Standardise corporategovernance
?Prevent operationalrisks
?Improve site visitsdisclosure
?Establish multiplecommunication channelsto disclose informationsuch as investor meetings,Shanghai Stock ExchangeE-Interaction Platform,telephone meetings, regularbriefings and provisionalannouncements
?Set up an investor relationsgroup for inspection anddaily administration ofinvestor relations projects
?Regularly disclose businessperformance
?Maintain stable profitability
?Improve corporategovernance gradually
Government
?Comply with laws andregulations
?Honest and legitimateoperations
?Pay taxes in accordancewith the law
?Serve national strategies
?Accept supervision andassessment
?Thematic presentation
?Participate in theformulation of industrypolicies and plans
?Enhance security
?Improve risk control
?Comply with relevant laws andregulations
?Operate in accordance withindustry growth and regionaleconomic development
Employees
?Employees’rights andinterests protection
?Employees’careergrowth
?Care for employees
?Establish labor unions atdifferent levels
?Channels for employeesto participate in corporategovernance, and stimulateand respond to employees’
innovation in time
?Solicit opinions andrationalization proposals
?Diversified recruitment
?Launch employee activities
?Care for employees’ health
?Safeguard employees’rightsand interests
?Offer online and offlinelearning platforms
Customers
?Offer premium productsand services
?Protect the privacy ofclients
?Respond to the needs ofclients
?Customer satisfactionsurvey
?Customer relationshipmanagement
?Discussions and interviewswith clients
?Respond to complaints fromclients
?Launch client security check
?Timely and effectivesatisfaction of client needs
?Offer high-quality services forclients
?Customer satisfaction survey
Sustainability ManagementENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020
Materiality Assessment
In 2020, the Company identified, evaluated and screened a number of issues, mapped themateriality matrix to determine the material issues that matter to the Company and otherstakeholders, and disclosed and responded to them in the ESG report. Also, the Companylaunched the stakeholder participation programme in a comprehensive and systematic wayby issuing ESG stakeholder questionnaires to senior executives, employees and externalstakeholders to understand their interest in different ESG issues.
The matrix shows the significance of 23 issues. The most important topics are displayed at the top right-hand corner, thoseleast important topics are listed at the bottom left-hand corner, and the issues in the middle are of moderate importance.Among them, highly important issues include: safe and stable gas supply, corporate governance and compliance, employeegrowth, resource and energy conservation, occupational health and safety, climate change, pollutant discharge, privacyprotection for customers, results and business performance. This report will disclose these issues in detail to betterrespond to the concerns and demands of stakeholders in a comprehensive and accurate manner.
?Draw up a list of issues according to theShanghai Stock Exchange Information DisclosureGuidelines on Environmental, Social Responsibility and Corporate Governance for ListedCompanies (draft for comment),Hong Kong Exchanges and Clearing LimitedEnvironmental, Socialand Governance Report Guidelinesand major issues of interested by global counterparts
?Classify the issues identified in line with the ESG framework
?Distribute stakeholder questionnaires to do quantitative research
?Conduct interviews and panel discussions
?Evaluate the significance of each issue to ENN-NG and stakeholders
?Map the materiality matrix according to evaluation results
?ESG Committee verifies the materiality issues matrix
? Materiality Assessment Steps
Identify relevant issues
Collect feedback from stakeholders
Map the materiality matrix
Verify the matrix
? 2020 ENN-NG’s ESG Materiality MatrixHigh
LowHigh
Importance to Stakeholders
Importance to ENN-NG
Employee/Client issueEnvironmental issueSocial issueEconomic issueIssues of Average Importance
Issues of Low Importance
Issues of High Importance
RankingIssues
Revenue and Performance
Product and Technology Innovation
Supplier Management
Anti-Unfair Competition
Business Ethics and Anti-corruption
Corporate Governance and Compliance
Equal Employment Opportunities
Protection of Employees’ Rights and Interests
Employee Growth and Development
Prohibition of Forced Labor and Child Labor
Protection of the rights and interests ofresidents in the locality of the CompanyOccupation Health and Safety
RankingIssues
Customer Service
Protection of Customer Privacy
Pollutant Discharge
Waste Recycling
Resource and Energy Conservation
Climate Change
Biodiversity Conservation
Safe and Stable Gas Supply
Intellectual Property Protection
Protection of the Rights and Interests ofResidents in the Locality of the Company
Charitable Activities for Communities
Community Relations
Building a Green Ecosystem
Building a GreenEcosystemENN-NG has been a staunch champion of China’s greenand low-carbon development strategy and workshard to achieve the national goal of peaking carbonemissions by 2030 and realising carbon neutralityby 2060. It has also been a responsible corporatecitizen by addressing climate change, conserving theenvironment and reducing the environmental footprintof production, operation and services. In this way,the Company contributes greatly to fostering a greenecosystem.
Building a Green EcosystemENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020
Building a Green EcosystemENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020
Addressing Climate ChangeClimate change has generated new opportunities for the natural gasindustry apart from daunting challenges. With the green developmentphilosophy in mind, ENN-NG has kept improving the energy mix andbusiness structure, invested heavily in R&D to drive a green and low-carbon energy transition and harnessed the platform resources andits own technical prowess to explore ways to reduce emissions andconserve energy across the entire life cycle of the value chain andmitigate and adapt to the climate challenges. These efforts will bringabout new opportunities to promote sustainable development.Climate Change Management FrameworkWe have actively worked to achieve the goal of peaking CO
emissions by 2030 and reaching carbon neutrality by 2060.Therefore, we establish a systematic management system for climate change risks, set carbon emission reduction targets,and take corresponding actions to meet the transitional needs for climate change.Climate Risk Governance and Management
Carbon Reduction Targets
Climate Strategy
ENN-NG has implemented the notion of green development, followed the policy developments in addressing climatechange at home and abroad, established theManagement Measures of Carbon Emissions of ENN Natural Gas CompanyLimitedbased on current industrial developments, enhanced GHG emissions monitoring and governance, pushedforward efforts to conserve energy and reduce emissions, and constantly raised the Company’s green and low-carboncompetitiveness. The city gas and integrated energy business segments of ENN-NG prioritise climate risk managementaccording to the United Nations Framework Convention on Climate Change, the Paris Agreement,China’s 14th Five-YearPlan (2021-2025) for National Economic and Social Development, the Long-Range Objectives Through the Year 2035,andMeasures for the Administration of National Carbon Emission Trading (Trial), among other policies and systems. TheCompany has analysed climate risks in the natural gas industry and examined relevant policies to identify climate risks andopportunities. The Company also formulated theClimate Change Policy, which clarifies our climate targets. We will use it asthe basis to respond to climate risks on an ongoing basis, take advantage of the opportunities arising from climate change,and contribute to the mitigation of global climate issues. We have made it clear that the ESG Committee maintains oversightover climate change-related issues, regularly discusses these issues, and monitors climate risks through actions such as:
In 2020, ENN-NG comprehensively reviewed the energy use status of its energy production, city gas, integrated energybusiness, engineering construction, and installation business, analysed the energy use structure and GHG emission data,and assessed its potential in carbon emission reduction. At the same time, the integrated energy business was planned tofurther provide low- and zero-carbon energy solutions for downstream customers in the value chain. We also formulatedmid- and long-term goals and strategies for carbon emission reduction in different business segment.
ENN-NG achieves business growth through a green and sustainable approach. Under theguidance of our climate change management framework, we develop business strategiesto mitigate potential climate risks, and grasp opportunities for low-carbon transformationto achieve win-win cooperation with stakeholders. ENN-NG actively cooperates with thegovernment on“coal-to-gas”conversion; promotes the deployment and use of low-carbon andzero-carbon energy; and increases the proportion of photovoltaic, geothermal, and biomassenergies. Going forward, ENN-NG will further include the comprehensive response to climatechange into the Company’s overall development plan.
?Identifying risks and opportunities of climate change to the Company and assessing the relevance of risks, so as to setrelevant goals;
?Assessing the impact of potential extreme weather and natural disasters on operations and formulating timely responsestrategies. In order to ensure the effectiveness of climate risk management and governance, the Company incorporatesrelevant indicators of climate risk management into the management’s remuneration and performance assessment andensures the effective implementation and supervision of related activities through the establishment of a managementteam dedicated to climate change response.
Production and OperationShort-term Goal by 2025Mid-term Goal by 2030Long-term Goal
Energy Production (Coal,
Methanol, and LNG)
By 2025, GHG emissionintensity (Scope 1 andScope 2 GHG emissionscombined/sales revenue)will be reduced by 10%(baseline 2020).
By 2030, GHG emissionintensity (Scope 1 andScope 2 GHG emissionscombined/sales revenue)will be reduced by 20%(baseline 2020).
Strive to achieve net-zerocarbon emissions by 2050.City Gas Business
By 2025, GHG emissionintensity (Scope 1 andScope 2 GHG emissionscombined/natural gassales) will be reduced by10% (baseline 2019).
By 2030, GHG emissionintensity (Scope 1 andScope 2 GHG emissionscombined/natural gassales) will be reduced by20% (baseline 2019).Integrated Energy Business
By 2025, we willachieve newly installedphotovoltaic capacity of
2.2 GW.
By 2030, we willachieve newly installedphotovoltaic capacity of
4.7 GW.
Building a Green EcosystemENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020
ENN-NG has actively worked to neutralise the carbon emissionsgenerated by its operations through various methods. For example,we have planted 15,289 trees in the ENN Science and TechnologyPark, which are equivalent to the neutralisation of approximately352 tons of GHG emissions every year. ENN-NG will further increasethe proportion of photovoltaic energy used in our ENN Science andTechnology Park office buildings. Ten geothermal heat pump unitswere used at the ENN Science and Technology Park to provide allheating and cooling for the park, supplying heating of 6,657 kWh inwinter and cooling of 7,710 kWh in summer, translating to significantenergy savings.
ENN Science and Technology Park Actively Carried out GHG Emission Reduction
15,289
trees were planted in ENNScience and Technology Park, whichare equivalent to the neutralisationof approximately
tons of GHGemissions every year.
ENN Science and Technology Park
The mid- and Long-term strategies for carbon emission reduction are outlined as follows:
Mid- and Long-term Strategies for Carbon Emission Reduction
Energy ProductionBusiness (Coal, Methanol,
and LNG)
1. We will fully improve energy utility efficiency optimise the smart energy use system, and
combine it with the new technology of modular energy saving, in order to decrease the energyconsumption of companies and their carbon emission intensity.
?We will utilise digital products to fully optimise the steam system of methanol devices to achieveenergy conservation and emission reduction.
?We will harness new technologies to enhance the combustion efficiency of steam coal, and to reducethe use of coal and carbon emissions.
?We will apply digital simulation and new material to increase the efficiency of our own boilers and toreduce carbon emissions.
?We will introduce the micro-gas turbines to fully recycle the by-product fuel gas from the productiondevices to reduce energy consumption and achieve emission reduction.
?We will enhance technological R&D investment in low-grade energy and apply the new technology, toleverage a large amount of LNG cold energy and pressure energy in the gas pipeline network.
2. We will improve the energy use mix in production by increasing the proportion of green, low-
carbon and renewable energies in the mix. We will strive to use green energy sources across themajority of our business by 2030.
?We will build photovoltaic power stations or purchase photovoltaic and wind power to reduce carbonemissions.
3. We will build partnership in technological ecosystem, develop and introduce CCUS-related
technologies, develop the production technology of chemicals from CO
, foster the ecosystemfor utilisation of CO
in large-scale, and increase the proportion of CO
use, in order to reduce thecarbon intensity.
4. We will constantly improve the methane monitoring capability during the production, storage
and transport of coal and gas, and enhance the BOG recycling technology to significantly reducethe leakage of methane.
5. We will work all-out to build digital intelligence products such as system energy use and data
management, enhance energy efficiency and data management capabilities, and explore ways tooffset carbon emissions, such as carbon sink and carbon quota trading.
City Gas Business
1.We will improve the energy efficiency of the city gas business, striving to reach the international
leading level within 5 years.
?Considering energy efficiency performance of leading companies internationally and in the contextof our own historical data analysis, we will assign energy efficiency improvement targets to membercompanies and formulate a routine assessment plan.
?For projects with high energy consumption, we will carry out energy consumption inspectionsand diagnosis to identify vulnerabilities, tap into energy-saving potential, and improve energy useefficiency.
2. We will strengthen methane management through methane emission monitoring and
treatment, improve boil-off gas (BOG) recovery and reinforce pipeline safety inspection andmaintenance to reduce natural gas leakage.
3. We will continue to optimise our own energy use structure, build a green energy use system,
and increase the proportion of low- and zero-carbon renewable energy used in our productionand operation.Moreover, we will research ways to offset carbon, such as afforestation, carbon capture,carbon offset, etc., to achieve carbon neutrality by 2050. We will also establish mid- and long-term GHGemission targets for the city gas business and aim to reduce 20% GHG emissions intensity (Scope 1 andScope 2 GHG emissions combined/natural gas sales) by 2030 (baseline 2019).
4. We will seek to develop digitally intelligent products; improve capabilities in digital intelligence
management; monitor and manage energy consumption, carbon emissions and pollutants;foster data intelligence; and enhance the ability to achieve emission reduction targets.By usingadvanced remote monitoring technologies such as video and infrared, the Company avoids leakageaccidents such as natural gas pipeline ruptures resulting from third-party damage.
5. We will promote the application of the Internet of Things (IoT) technologies in the pipeline
network, and key equipment and facilities in stations, including cathodic protection, pressureregulating facilities, valve wells, and cloud-based laser platform technology. We will also monitorthe operating status parameters of the pipeline network, equipment, and facilities for preventivemaintenance to avoid major leakage accidents caused by equipment failure.
Mid- and Long-term Strategies for Carbon Emission Reduction
Integrated Energy
Business
1. We will promote integrated energy business and technology and increase the ratio of
renewable energy utilisation (i.e., solar, geothermal, biomass, and hydrogen energy) at all stagesof project development, construction, and operation to improve energy efficiency and reduceenergy consumption.
2. We will assist the government in developing regional energy planning to achieve emission
reduction targets through the following activities:
integrating the demand of energy such as naturalgas, electricity and heating and technology applications within the region, and improving the efficiencyof energy use in the region.
3. We will accelerate the development of integrated energy service to help customers improve
energy utilisation efficiency and optimise energy structure.
4. We will promote and apply digitally intelligent products across the business and enhance
efficiency in energy use.We will continue to optimise and upgrade digitally intelligent products, aimingto obtain modular development and nesting capabilities by 2030. We hope to realise the full applicationof digitally intelligent products in the business and empower the industry through data intelligencecapabilities.
5. While increasing the proportion of renewable resource utilisation and enhancing technological
capabilities, we will actively explore and research ways to offset carbon such as carbon tradingand carbon sequestration.
Building a Green EcosystemENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020
Assisting Clients with Emission Reduction
ENN-NG remains committed to sustainability across the entire industrial chain. Apart from greatly reducing carbonemissions, the member companies are also assisting their clients with energy conservation and emission reduction bymaking technological innovations. Moreover, the member companies are actively verifying their carbon footprint andcalculating and analysing the carbon footprint of their products.
ENN Energy initiated the technical transformation project at its Sino-German Integrated Energy Station in Qingdao, Shandong Province. Theproject recycled the waste heat from the smoke in the gas-fired boilersand reduced the temperature of the smoke, thereby eliminating thewhite smoke (flue gas containing water mist) generated by gas boilersin winter. This new technology took both environmental governanceand waste heat recycling into account. After the project was launched,the energy station saw an increase in energy efficiency by 6% and760,000 m
of natural gas were saved on an annual basis. The heatingsupply capacity is now expanded, meaning more profits are earnedwhilst the environment is protected.
ENN Energy Helped Clients Reduce Emissions and Energy Consumption byRecycling Waste Heat
White smoke elimination and waste heat utilisation at the Sino-German Integrated Energy Station
The energy efficiencyof the IntegratedEnergy Stationincreased by6%
760,000m
of naturalgas
GHG Emissions Reduction
Emissions Reduction at ENN-NG
The Company abides by theEnergy Conservation Law of the People’s Republic of China, theLaw of the People’s Republicof China on the Promotion of Clean Production, theCircular Economy Promotion Law of the People’s Republic of ChinaandtheRenewable Energy Law of the People’s Republic of Chinawhile doing its utmost to reduce the greenhouse gas emissionsduring production and operation. We devised theSustainable Development Policy and theManagement Measures ofCarbon Emissionsand took measures to explore how to reduce carbon emissions in daily operations. It utilised renewables,initiated the coal-to-natural gas project, managed methane emissions and formed partnerships to promote R&D in newenergy sources, thus enabling businesses and households to reduce greenhouse gas emissions.
At ENN-NG, different departments have actedin line with their business features to identifythe production and operation links wherethere is potential for lower emissions, madetechnological innovations, and upgraded existingtechnologies to harness renewables and reducethe carbon footprint. In order to further cut theemissions, the Company has launched R&D onCCUS technology, introduced the technology toengineering projects and conducted cooperationwith other industry leaders. We have alsostudied cutting-edge technologies in China andbeyond, mapped out the blueprint for carboncapture business segment and applied the CCUStechnology to current projects. Moreover, ENN-NG has focused on carbon emissions resultingfrom methane leakage. The member companieshave, therefore, upgraded relevant technologiesto recycle the leaked methane.
IndicatorAmountTotal GHG Emissions (10,000 tons of CO
e)467.40----Scope 1 Emissions (10,000 tons of CO
e)431.49----Scope 2 Emissions (10,000 tons of CO
e)35.91Intensity of GHG Emissions (10,000 tons of CO
e/RMB 1 Billion of Revenue)
5.31
ENN Energy Holdings Limited (hereafter“ENN Energy”, an integral business segment of ENN-NG) utilises theapplied technology of natural gas pipeline network simulation to simplify the operation and management ofcomplex pipeline networks. We obtain data from the SCADA system through OPC, then calculate and monitorthe pressure and flow in the natural gas pipeline network. This technology can determine the utilisation rateof the pipeline network under different supply conditions, as well as calculate the amount of methane gas thatmay leak, so as to help operators constantly optimise the pipeline network operation.
ENN Energy Used the Dynamic Simulation Technology to Fully Utilisethe Pipe Capacity and Monitor Methane Leakage
Xinneng Energy Company Limited (hereafter“Xinneng Energy”), amember company of ENN-NG, cooperated with Zhuhai Gongtong Low-Carbon Technology Company in the area of carbon recycling. In 2013and 2020, Xinneng built the carbon recycling equipment with an annualcapacity of 20,000 tons and 150,000 tons, respectively. The equipmentreused the carbon dioxide exhaust gas from methanol production,and turned the waste gas into liquid carbon dioxide for food factories,the mechanical industry and oil displacement. The project leveragedthe Company’s idle utilities capacity. By upgrading the outdatedtechnologies, the system has reused the waste, reduced the emissionsof carbon dioxide, and built a low-carbon, ecological and cyclicalproduction model.
Xinneng Energy Implemented Carbon Reuse and Recycle Project to Reduce GHG Emissions
Operation diagram of simulation official website
Note:
Scope 1 GHG emissions comprise direct CO
emissions from energy (coal, diesel, gasoline,gas) consumption during business operations of ENN-NG and its member companies,combined with emissions from crude coal decarbonisation during production ofmethanol.Scope 2 GHG emissions comprise indirect emissions from purchased power consumptionduring business operations of ENN-NG and its member companies.
AnnualSaving
Building a Green EcosystemENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020
Yangpu Industrial Park possessed a great amount of energy consumption. Existinglarge enterprises in the park had their own energy systems. The park had anunderdeveloped energy infrastructure with a low utilisation of clean energy,causing heavy pollution. The low utilisation rate of facilities in the park and the lackof willingness of large enterprises to supply energy externally resulted in high gasheating costs, leading to a decline in enterprise investments opportunities. Afterassessment of the situation, ENN Energy acquired the thermal power-managementright. Making full use of“solar energy + biomass + waste heat and waste energy+ existing facilities”, we met the various needs of the enterprises in the marketfor electricity, heating, and cooling. We also optimised the energy structure,reduced energy cost, and enhanced the image of the park. At the moment, PhaseOne focuses on utilising the solar power and biomass energy, with over 80% ofrenewables and 100% of clean energy in the energy mix.
ENN Energy Helped Clients Improve the Energy Mix
Clean energy utilisation at ENN Energy Yangpu Industrial Park
Renewables account formore than
80%
Clean energy accounts for
100%
Improving Energy E?ciency
ENN-NG abides by theEnergy Conservation Law of the People’s Republic of Chinaand takes vigorous steps to improveenergy efficiency and reduce the waste. The member companies have devised internal mechanisms in line with the actualconditions to determine the departments that are responsible for the utilisation, management and evaluation of energy.The member companies encourage their employees to conserve energy during the daily operations and roll out theconservation plan, assessment standards and reward mechanisms to better manage the energy efficiency in businessactivities.
Xinneng Energy, used the Advanced Process Control (APC) technology to enableautomatic adjustment of the equipment. With the advanced control theory andmethodology, the plant put process analysis and mathematical model calculationat the core and took the plant control network as the information carrier, so thatthe production process would be controlled by predictive multivariate modelsrather than the conventional distributed control system (DCS). Therefore, wecould automatically diagnose and optimise the status and level of industrialproduction, operational processes and energy management, enhance theintelligent operational level of the equipment, and improve the energy efficiency.At present, ENN-NG has implemented and applied APC across all worksections of our own coal-to-methanol installation, leading to significantlyhigher production of gas and crude methanol per ton of coal, and reducing theconsumption of steam by 3%. We also introduced APC to more than ten devicesof methanol- and coke oven gas-LNG, significantly boosting the equipmentproduction and energy efficiency. Nowadays the technical team has a proventrack record of whole-process APC projects in the coal chemical industry,especially the coal-to-methanol sector. Backed by strong technical prowess, wehave got 6 APC-related national patents.
In 2020, Xinneng Energy, launched the project of gas extraction-based powergeneration and steam balance to optimise the energy use and build a modelplant for energy conservation and emission reduction. Phase 1 of the projectwas already started, which utilised the expansion work of steam decompressionto generate power. After decompression, the steam experienced a decrease inthe enthalpy value, still, it could be used as a heat source or entered the lower-level steam pipe network to balance the steam. Therefore, the efficient use ofenergy was guaranteed. According to the calculation of the minimum steamextraction capacity of 25 tons/hour, 27.60 million kWh of power could be added,so that the comprehensive energy consumption was lowered.
27.60
million kWh ofpower could be added, so thatthe comprehensive energyconsumption was lowered.
By 2020, we received
APC-relatednational patents in this technicalrealm.
ENN-NG has focused on the research, development and application of the new energy-saving techniques, technologies andequipment, as well as on the monitoring and assessment of major energy-intensive devices, equipment and systems. It hasenhanced energy management in business operations, improved the energy efficiency and fully utilised the renewables.Xinneng Energy Methanol Plant Improved Energy Efficiency Through IntelligentOperations
Xinneng Energy Methanol Plant Launched the Energy Optimisation Project toReduce Energy Consumption and Build a Model Plant
In 2020, Xinneng Energy launched the steam balance project, aiming to reduce the cost and unleash furtherpotential. Before the project was initiated, insufficient overheated medium pressure steam had to be supplementedby lowering the temperature or pressure of the overheated high pressure steam in the boiler, resulting in anexorbitant consumption of steam coal and the vent of large amounts of low pressure steam and waste heat steam.After the project was started, however, we could save about 40 tons of high pressure steam per hour, 57,000 tons ofsteam coal per year and 240,000 tons of desalted water per year, significantly reducing the energy consumption.
Gas
Medium-pressure steamBiomass
Low-pressure steamElectricity
For Self-usePower Grid
UserSolar Power
BoilerBoilerGenerator
Technology Roadmap
Nanjing ENN Gratle CompanyLimited got the carbonfootprint certification.
Launching Carbon Veri?cation and Carbon Footprint AccreditationThe member companies of ENN-NG have actively launched carbon verification and carbonfootprint accreditation work to understand their own GHG emissions status and potentialresponsibilities and risks. In 2020, ENN-NG initiated ISO 14064 GHG emissions verificationwork to 117 member companies, which had been completed in March 2021. The 2020 GHGVerification Report was issued. Nanjing ENN Gratle started carbon footprint verification to itsJZT-M835G natural gas cooker, and calculated that the product had carbon emissions of 63.14kg of CO
e. An accreditation certificate was given to the cooker.
We initiated ISO 14064 GHG emissions verification work to
member companies.
Building a Green EcosystemENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020
? ENN-NG Energy Consumption in 2020
IndicatorAmount
Natural Gas(10,000 standard cubic meters)
1,377.28Gasoline (10,000 litres)444.99Diesel (10,000 litres)202.66Total Electricity Consumption (10,000 kWh)81,120.00
In 2020, Xindi Energy Engineering Technology Company Limited (hereafter"Xindi Engineering") a membercompany of ENN-NG, undertook the project of Huludao ENN Energy Development Company Limited’spartnership with some pharmaceutical in natural gas-to-hydrogen production. The project employedENN-NG’s hydrogen production process package, and used the EPC model. Xindi Engineering was mainlyresponsible for the design and R&D of the hydrogen production unit, procuring needed materials for the newunit, conducting civil construction, installing and testing the equipment, and the test run and commissioningof the production unit.Moreover, Xindi Engineering undertook the engineering design of the Zhangjiakou Hydrogen EnergyIndustrialisation and Application Demonstration Project of Haipoer New Energy Science and TechnologyCompany Limited in Zhangjiakou. The project harnessed the electrolysis technology of alkaline water toproduce hydrogen, which was developed by China State Shipbuilding Corporation Limited 718 ResearchInstitute. The technology and equipment used were cutting-edge, and the process did little damage to theenvironment. Therefore, the project helped Xindi Engineering accumulate engineering design experience inanother hydrogen production field.The current business exploration in the field of hydrogen production boosted ENN-NG’s whole-scenarioservice capability for the natural gas industry and enabled the Company to explore a new business modelfeaturing one-stop solution provider of products and services. It also helped the Company accumulate usefulexperience and enhance capacity-building in the hydrogen energy industry and powered the transformationand upgrading of engineering services, boosting the national energy transition.
Huludao ENN Energy’s Natural Gas-to-Hydrogen Project
IndicatorAmountTotal Coal Consumption (10,000 tons)307.22Comprehensive Energy Consumption(10,000 tons of standard coal)
255.66
Density of Comprehensive EnergyConsumption (10,000 tons of standardcoal/RMB 1 billion of revenue)
2.90
Environmental ProtectionENN-NG has worked relentlessly to build a green and clean environment based on a sound management philosophy whilecomplying with relevant laws and regulations. By incorporating conservation effort into daily activities, the Company hashelped build green and clean communities for employees to live and work.
The production companies of ENN-NG have signed a contract with local environmental monitoring stations to havetheir effluent, waste gas, noise level monitored regularly and the major pollutant discharge checked in real time. Somesubordinate companies would invite a third party to monitor the noise level, sewage and waste gas every year and thenreport the results to the local environmental authorities. In 2020, the Company recorded no serious event that led tolitigation or punishment due to environmental violation activities.
The Company has kept improving the environmental management systemin accordance with the ISO 14001 standard, established a Quality, Health,Safety and Environment (QHSE) Management Committee and assigned full-time personnel to carry out environmental governance. Taking internalgovernance and external supervision as the engine, we have worked toimprove the capability for responding to environmental emergency andmonitoring the environment from the four stages of planning, implementation,evaluation and improvement. The member companies have been urgedto prepare environmental management mechanisms according to theirbusiness performance and some subordinate companies have establishedgreen operation and management assessment system that incorporatedenvironmental resources value into production accounting system to betterimplement the environmental protection management system and meet theenvironmental indexes.
Pollutant Discharge Management
ENN-NG has effectively managed the wastewater, waste gas and solid waste to prevent environmental pollution. We have builta raft of environmental facilities in line with conservation standards to monitor the surrounding environment and comply withsuch laws and regulations as the Integrated Discharge Standards of Air Pollutants,Environmental Protection Standards of WaterPollution,Integrated Discharge Standards of Sewage,Acoustic Environmental Quality Standards,Environmental ProtectionStandards of Solid WasteandNational Hazardous Waste List. The subordinate companies have also formulated rules andregulations such as theManagement System for Pollutant Control and Environmental Facilities Operation,Management Systemfor Implementing Clean Production,Environmental Monitoring System, Response Plan for Environmental EmergencyandManagement Regulations on Environmental Protection of Construction Projects. We have invested hugely in upgrading existingenvironmental technologies and building relevant facilities, adopted clean production techniques and managed the sewage,waste gas and solid waste to keep the emission indicators within the national standard range. These vigorous measures haveenabled us to be the industry leader in terms of environmental governance.
Gas EmissionsENN-NG has carried out the R&D and application of waste gastreatment technology and launched the Special Campaign onDisposal of Waste Gas. We treated the flue gas that resultedfrom combustion in the boiler by using the purification device(desulfurisation, denitrification and dust removal) and thenemitted it at a high altitude after it met the national standard.In this way, the ecological environment was protected. In 2020,Xinneng Energy invested RMB 40.31 million to upgrade thepurification device.
? ENN-NG Waste Gas Emission in 2020
IndicatorAmountSulphur Dioxide Emissions (tons)706.25Nitrogen Oxide Emissions (tons)945.38Soot Emissions (tons)58.45
By the end of 2020,
member
companies were awarded the
ISO 14001 certificate.
ENN-NG Focused on the Hydrogen Production Business, Accumulated EngineeringExperience in the Field, and Assisted With the Energy Transition
Building a Green EcosystemENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020
In 2020, Xinneng Energy implemented the technicaltransformation project to ensure the flue gasreached the national standard before being emitted.After the ultra-low emission upgrading, SO
emissionsdecreased from 190mg/m
to no more than than35mg/m
, NOx emissions jumped from 185 mg/m
to no more than than 50 mg/Nm
and the sootemissions fell from 29 mg/m
to no more than than10 mg/m
. The project greatly cut down the emissionof exhaust gas and contributed to environmentalprotection and green operations.
Ultra-low Flue Gas Emission Upgrading Project
Waste WaterThe production companies of ENN-NG are all equipped with waste water treatment facilities to improve water use efficiencyand reduce effluent discharge. After proper treatment, some of the waste water is reused after reaching a certain standard,while the rest is discharged into the municipal sewage disposal plant or natural water body. This approach has takenboth production and office waste water into account. Meanwhile, we have upgraded various water disposal projects andmaintained water treatment equipment. Xinneng Mining Industry Co., Ltd. (hereafter“Xinneng Mining”) and Xinneng Energy,its holding subsidiary, have realised no waste water discharge.? ENN-NG Water Use and Waste Water Discharge in 2020
IndicatorAmount
Water Consumption (10,000 tons)1,433.32
Intensity of Water Consumption (10,000 tons/RMB 1 Billion of Revenue)16.27
Waste Water Discharge (10,000 tons)144.23
In 2020, Xinneng Energy completed the construction of a concentrated brine treatment device with adesigned capacity of 40 m
per hour. The project combined the techniques of two-stage softening, multi-media filtration, ion exchange, two-stage reverse osmosis, three-stage reverse osmosis, four-effectevaporation and spray drying to recycle the waste water. The system has been put into operation, with all theindicators satisfying the design requirements. The project has laid a solid foundation for Xinneng Energy torecycle the waste water from the chemical engineering system and ultimately achieve the goal of zero wastewater discharge.
Concentrated Brine TreatmentDevice with Zero DischargeNoise PollutionWhile ensuring normal production, ENN-NG has complied with institutional documents to reducenoise pollution, including theNoise Limits Around Construction Sites,Noise Emission Standardsin Social Living EnvironmentsandNoise Emission Standards Around Industrial Enterprises. TheCompany has used the rubber lining in the gasified ball mill, put high noise equipment in thesoundproof plants and added sound insulation pads and silencers to some devices, in a bid toensure that the noise level within the perimeter of the factory meets the relevant standards andavoid disturbing local residents.
In 2020, Xinneng Mining expanded the capacity of the mine water treatmentstation, increasing the treatment capacity from the designed parameter of3,600 m
per day to 13,000 m
per day. The reverse osmosis treatment capacityreached 10,000 m
per day. The produced water could reach the Class IIIstandard of surface water. Part of the treated water was used for production,while the rest went into the reverse osmosis production line to get furthertreatment in the ultra-filtration, reverse osmosis, concentrated water reverseosmosis system. All the waste water, after being properly treated, was used forthe purpose of production, daily life and external supply and the concentratedwater was used for coal washing. We treated the domestic sewage and minewater up to the standard, which meant we discharged no waste water. Moreover,we built three ecological reservoirs with a total capacity of 314,000 m
outsidethe mining site. In winter, we would store water in the reservoirs, while insummer, we would use the stored water for irrigation, thus saving and recyclingwater resources to the greatest possible extent.
mg/m
≤
mg/m
Soot
SO
mg/m
≤
mg/m
emissions
emissions
NO
X
emissions
mg/m
≤
mg/m
Xinneng Energy Upgraded the Boilers of the Thermal Power Installation toReduce the Emission of Flue Gas
Xinneng Mining Expanded the Mining Water Treatment Station toRealise Zero Waste Water Discharge
Xinneng Energy Built Waste Water Treatment Devices to Recycle Water Resourcesin the Chemical Engineering System and Realise Zero Waste Water Discharge
Three ecological reservoirswere built outside themining site.The total capacity was314,000
m
.
In 2020, Xinneng Energy started to upgrade its watertreatment system. The two-phase project includedthe building of two sets of treatment devices for zero-discharge salt separation with a designed capacity of60 m
/hour, respectively. Phase I device adopted thetechniques of high-density sedimentation, secondary AOP,sand filtration, sodium bed, multi-effect evaporation andrefrigeration process, while Phase II included those of high-density sedimentation, sand filtration, ultra-filtration andsodium sulfate drying. The equipment was completed andput into operation in December, 2020, which enabled saltseparation with zero discharge and reused the salt in thewaste water by producing sodium chloride and sodiumsulfate.
Building a Green EcosystemENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020
Solid Waste Disposal
ENN-NG has followed a series of institutional documents, including thePollutionControl Standards at Storage and Treatment Sites of General Industrial Solid Waste,
Pollution Control Standards for Hazardous Waste Landfill,Pollution Control Standardsfor Domestic Waste IncinerationandPollution Control Standards for DomesticWaste Landfill, and utilised some of the solid waste comprehensively. Some membercompanies built their own slag yards to recycle the waste from industrial productionand office work. They turned the waste into non-hazardous resources to avoidsecondary pollution and reduce the harm to employees’ health and the environment.
?ENN-NG Solid Waste Discharge in 2020
Biodiversity ConservationENN-NG abides by theEnvironmental Impact AssessmentLaw of the People’s Republic of China, theLandManagement Law of the People’s Republic of China, theWater and Soil Conservation Law of the People’s Republicof China, theManagement Regulations on EnvironmentalProtection of Construction Projects, theAssessmentRegulations of Environmental Impact on Planningandimplements theTechnical Guidelines for EnvironmentalRisk Assessment of Construction Projects of the People’sRepublic of Chinaduring construction. The Companyhas supervised the whole cycle of a project to preventany possible ecological damage. Before construction,we should complete the environmental and safetyassessments, set up more stringent evaluation standardsfor the ecological protection areas such as water sourcesand animal habitats, and prohibit construction in naturereserves, ecological function areas, forest parks anddense forests. During construction, we should use low-noise equipment to reduce the level of sound source andminimise the disruption to surrounding trees, vegetationor animal nests. After completion, we should restore the
local ecosystem in time to prevent further unnecessaryharm to the environment. Moreover, the Companypromulgated theBiodiversity Conservation Policy of ENNEnergy Holdings Company Limited. It respected the localresidents, reduced harmful impact on communities andconsidered the potential damage to the surroundingenvironment and wildlife habitats. The member companieshave also played an active role in conserving biodiversityby raising the awareness on environmental protection onthe World Environment Day through diversified activities.
Note:
Non-hazardous waste includes PE waste pipe, waste metal pipe, coal gangue, coal ash, slag, chemical waste residue, household waste, construction waste, andnon-hazardous garbage arising from production and repair of gas metres, that ENN-NG, ENN Energy Headquarters and its subsidiary gas companies generate inthe wholesale and retail business of natural gas in 2020.Hazardous waste includes waste machine oil, waste odorant barrels, waste catalyst, waste chemical packaging, and scrapped circuit boards arising fromproduction and repair of gas metres, that ENN-NG, ENN Energy Headquarters and its subsidiary gas companies generate in the wholesale and retail business ofnatural gas in 2020.
Indicator2020
Total discharge of non-hazardous waste
Intensity of discharge ofnon-hazardous waste
Total discharge ofhazardous waste
Intensity of discharge ofhazardous waste748,004.34 tons8,490.52 tons/RMB 1 Billion6.62 tons/RMB 1 Billiontons
In order to jointly promote ecological protection and sustainable development, ENN Charity Foundationdonated RMB 100,000 to the Society of Enterprise & Ecology (SEE) Foundation to support the Noah’s ArkProject for repair of the field workstation of the Naban River Nature Conservation Education Foundation andother tasks.After installation and commissioning, the field workstation has been used for conferences and training topromote the practice of biodiversity conservation and ecosystem protection in the mountainous regionsof Southwest China and facilitate the implementation of nature conservation education, training andexperimental activities in a timely, smooth and efficient manner. It has become a venue for international anddomestic environmental protection organisations at all levels to provide education and training sessions onnature conservation and a relatively independent and convenient workplace for future field work.
In 2020, thousands of swans migrated to Donggu Lake Wetland in Quyuan Management District of YueyangCity in winter. ENN Yueyang Gas Co. actively responded to a call from the Natural Resources Bureau of QuyuanManagement District and organised its employees to volunteer to protect the swans. Employees at the sitepersuaded bird watchers not to harass swans at close range, shared knowledge about laws and regulationsfor protecting migratory birds in winter, and helped the public consciously protect migratory birds and thewetland.
ENN Yueyang Participated in the Protection of Swan Habitat
ENN Charity Foundation’s Donation Certificate for the Naban River Nature Education Base
Migratory birds pass the winter in the swan habitat
Enn-Ng Donated Funds to Support Noah’s Ark for Building the Naban River NatureEducation Base and Improving the Environmental Protection Practitioners’ Capacity
Building a Green EcosystemENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020
In 2020, Xindi Engineering began the natural gas pipeline crossing project in the environs of the 5A scenic spotof Qingyuan Mountain in Fujian Province. The Company invested RMB 502,000 and implemented the specialplan to protect the ecosystem of the construction site and to reduce the impact on the ecology of the touristdestination.
ENN (Zhoushan) LNG Company Limited (hereafter "Zhoushan LNG Receiving Terminal") , an ENN-NG’sTrusteeship Company, received total investment of RMB 19.697 million in phase 1 of the pilot project of LNGbunkering station for international ocean-going vessels and devised a plan to conserve water and soil toreduce the adverse impact on the local environment.During construction, we rigorously implemented the soil and water conservation measures by confiningthe construction to the scope of designated land, banning the arbitrary occupation, disruption or damageto the surface vegetation, properly stripping the topsoil and comprehensively using the waste slag. Wemonitored and supervised the progress in soil and water conservation effort and clarified the responsibilityfor controlling soil and water loss. We also tried our best to minimise the impact of construction on localwildlife and the major breeding areas and migration routes. After construction, we immediately restored theoriginal terrain of the site, natural drainage channels, ditches, embankments and the farmland, dismantlingthe construction facilities and removing the construction materials. Every year, we would report to theTaihu Basin Bureau of the Ministry of Water Resources and Zhejiang Water Resources Department on howthe conservation plan was implemented in the previous year and accept the supervision and inspection ofrelevant departments.
?Before construction, the special environmental protection plan was devised andimplemented to reduce the impact of the floating dust by setting up dust gauzeover the construction site and paving hard surfaces on the ground.
?During construction, we preferred low-noise equipment and added silencers. Wedid a good job in preventing fires in the scenic spot by setting up water sourcesfor firefighting, reducing the temperature of the site by using sprinkling truckstwice a day and installing cameras for remote monitoring of any potential firerisks. We also introduced the advanced and environment-friendly mud treatmentequipment and plate and frame mud filter press to recycle the waste mud andrealise zero waste discharge.
?After construction, we quickly restored the terrain of the site, dismantled allbuilding facilities, removed the building materials, submitted the site restorationreport to the local environmental and scenic spot management authorities andorganised the confirmation session.
Construction Site at the Scenic Spot
Green O?cingENN-NG advocates the concept of going green in the office and pays attention to energy conservationand emission reduction at workplace. For example, employees are encouraged to commute by publictransportation or carpooling. They also go paperless where possible, print on both sides of the paper andturn off the lights, computers and displays after work. In addition, notices are put near the air conditioneror light switch to inform employees to save electricity and water. In 2020, the Company saved 2,624 tonsof water and 303,000 kWh of electricity, an increase of 21.18% and 20.66% compared with last year,respectively.
In 2020, ENN-NG launched the campaign of cost reduction and value creation, and took diversified measuresto go green in the office.
ENN-NG Took Diversified Measures to Go Green in the Office in 2020
Make the windowsmore airtight
Paste heat-shielding film onthe sunward windows
Utilization of dormant assets
We removed the windowson the dark side ofthe headquarters andinstalled more airtightones to improve theindoor temperature inwinter, thus reducingthe energy demand forheating.
We pasted the heat-shielding film to thewindows on the sunwardside of the office buildingto block the excessiveUV in the summer,thus reducing theenergy consumption ofrefrigeration.
The Company set aconsistent servicelife period for officecomputers to maximisethe use of idle computersin the warehouse. Officefurniture was also suppliedwhere necessary and wewould repair the brokenpieces or re-utilise themfor other purposes.
Xindi Engineering Implemented an Ecological Conservation Plan forConstruction around the 5A Scenic Spot of Qingyuan Mountain
Phase 1 of ENN-NG’s Trusteeship Company Zhoushan LNG Bunkering Station-Pilot Project forInternational Ocean-going Vessels Implemented Water and Soil Conservation Plan
We invested RMB
502,000
andimplemented the special planto protect the ecosystem ofthe construction site.
Ensuring Healthand Safety
At ENN-NG, we rmly believe that safety underliesour smooth operations. We value safety managementby controlling the safety risks at every link. We alsocare about our employees and do what we can tosecure their happiness and safety.
Ensuring Health and SafetyENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020
Ensuring Health and Safety
Ensuring Health and SafetyENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020
Safety GuaranteeSafety guarantee is the cornerstone of our work atENN-NG. We have always adhered to the concept ofsafe operation and enhanced the awareness of thebottom line. Our safety effort is pushed forward inaccordance with relevant laws and regulations. Wefrequently update the safety mechanism to forestallany safety risks. Therefore, a corporate culturefocusing on safety has taken shape, which ensuresthe Company’s safe and smooth operation. In 2020,there was 1 work-related death at ENN-NG.
Safety ManagementENN-NG puts safety high on its agenda and follows theSafetyLaw of the People’s Republic of China.We always adhere tothe concept of“three simultaneous safety production”, tampthe safety foundation, and ensure the safety production anddevelopment of the company.
Safety Management System
The Company set up the Safety Management Committee at the headquarters, with the co-CEO as the chairman, thepresident as the executive chairman, and the chief safety director as the secretary general. The Committee is mainlyresponsible for implementing the laws and regulations of the central and local governments on safety and the workrequirements of ENN Group International Investment Limited (hereafter“ENN Group”), analyzing the status quo of safety,and coming up with corresponding solutions and plans. It also reviews annual targets, rewards and punishments related tosafety, as well as the investigation and handling opinions for accidents. Moreover, it studies the major matters, coordinatesand addresses the prominent problems, and supervises and inspects the implementation of related work in productionsafety.
Safety Management CommitteeThe Company has established a safety management system with“low-risk operation”at its core. The system sets out fourdimensions of core values, self-driven responsibility, risk control and professional competence to map out the standardsfor safety management and accumulate best practices. It aims to build consensus on safety management among allemployees in different departments, clearly define the management responsibilities, promote the use of safety quantitativeindicators KPI, spread the territorial management model, and introduce advanced tools to conduct the process risk control,continuously improving the ability of all employees to perform their duties safely.
Standardised job competenceStandardised curriculumStandardised training instructorsStandardised training assessments
Elements of core valuesComprehensive risk normsExemplary leadership role
Key performance indicator KPIBottom line and disciplinary punishmentTerritorial responsibilityCapability of performing dutyCareer development
Self-driven
mechanism
for
safety
va
lue
Self-drive
n
m
e
c
h
a
n
is
m
f
o
r
o
r
g
a
n
i
s
a
t
i
o
n
a
l
r
e
s
p
o
n
s
ib
i
li
t
y
S
e
l
f
-driv
e
n
mechanism
for risk-advanced
control
Core values
Professional competenceRisk control
Self-driven responsibility
Operating instructionsStandard operating procedureWork permitHigh-risk support planEmergency plan
ENN-NG Safety Management System Model
Indicator
2020
Safety and emergency
drills Times
Lost Time HoursLost Time Incident Rate
(LTIR)
Number of dedicated safetymanagement personnelPersons11,45030,817 hours1.27 827
By the end of 2020,
membercompanies were awarded theaccreditation certificate of OHSAS18001 or ISO 45001.Note:
“Three simultaneous”refers to simultaneous design, construction and operation& use.
Note:
1 The Lost Time indicator reports the number of hours worked lost as a result of either on-site or off-site work-related incidents.2 The Lost Time Incident Rate (LTIR) is calculated as the number of LTIs divided by hours worked, multiplied by 1,000,000.
Ensuring Health and SafetyENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020
Safety & Digitalisation ApplicationsIn 2020, ENN-NG took the safety management system as its underlying work logic and pressed ahead relevant workwith integrated and intelligent safety risk disclosure products to explore a pathway for their safe, digital and intelligentapplications. The Company took the following measures to consolidate and enhance safety management.
?The Company upgraded the existing digital safety applications and completed the following tasks: screening and
management of hidden dangers, management of special operation tickets, dynamic risk control, risk mapping, QHSE
organisation portrait, violations (“red and yellow lines”) reporting, laws and regulations database building, personnel
information database building, and prohibition work of core parts.
?The Company also created the Smart Safety Helmet Supervision and Empowerment System, which enabled us to focus
on the helmet as the carrier and formulate supervision and empowerment plans. The System implemented safety
management from the four dimensions of remote investigation and handling of potential dangers, remote guidance
on safety technologies, remote safety training and remote image retention. Moreover, we increased the frequency of
safety inspections to understand the safety trends of construction sites in real time. These efforts improved the safety
management capability and reduced the occurrence probability of accidents caused by hidden dangers.
ENN-NG’s Digital and Intelligent Safety Empowerment Platform harnesses the IoT, digital connectivity, andAI to offer such functions as data analysis, responsibility implementation, announcement notification andstatistics search. The Platform can also interact with other management platforms of the Company todynamically understand how the primary responsibilities of ensuring safety are shouldered and robustlysupport the precise monitoring of self-driven organisations in promoting safety. Moreover, the core functionsof the Platform include data board, closed-loop management of hidden dangers, check plan management,special operations management and closed-loop management of risk hierarchical control.The Platform enables the multi-dimensional survey of how self-driven organisations have fared in fulfillingtheir responsibilities of ensuring safety and displays the results visually, so that ENN-NG will get the bigpicture of related work. The data centre analyses the risks and hidden dangers of self-driven organisations indifferent areas and shows the results clearly, which makes it easy for the Company to root out the underlyingproblems and conduct precise supervision. The information barriers between the self-driven organisationsand the Company are removed to enable the fast sharing and transmission of safety information and data,thus greatly improving the work efficiency.
ENN-NG Established the Digital and Intelligent Safety Empowerment Platform
Digital and Intelligent Safety Empowerment PlatformOccupational Health and Safety InvestmentThe Company established a long-term investment mechanism in safety and investedin nine major areas including protective equipment and facilities, emergency rescueequipment, equipment used in emergency drills, assessment of major hazard sourcesand hidden dangers, monitoring and correction of accidents, production inspection,evaluation, consultation and standardization, equipping and updating of protectiveequipment for on-site operators, and publicity, education and training of safety.The mechanism ensured adequate funding to keep the workplace safe and secure.Furthermore, we improved on-site conditions, reduced casualties, and protectedworkers’ safety.
安全数智化产品规划蓝图
依托恩牛网，协同新奥新智、新奥能源确定结合点、输出点、借用点，以解决现场问题为导向，兼顾考虑市场价值，统筹有序开发
能源行业中台理正中台跨行业中台数智中台平台技术智能物联平台联邦云物联网络云硬件云硬件
运途云
工厂管网运营物流商LNG接收站船运商煤矿工程
生态智能安全产品资源池业务场景智能产品资源池智能安全通用产品资源池
运输全流程监控视频平台AI平台海管电子围栏设备智能监测智能巡检工程可视化设计建模核查危险源监测管道完整性
风险分级示险安全里程碑指标
生产运行偏差指标视频监控信息安全绩效量化指标
特殊作业指标隐患排查指标业务系统示险信息风险示险信息
智能安全示险集成系统事故事件指标
下沉调用风险评价承包商管理应急管理健康监测
事故管理隐患排查特殊作业培训管理
Product Planning of Safey&Digitalisation Applications
Smart Safety Helmet Supervision and Empowerment System
In 2020, we invested RMB
million in occupational health andsafety-related fields.
Ensuring Health and SafetyENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020
Safety Risk Control
ENN-NG has actively identified, determined and controlled safety risks and refinedthe regulations for managing safety risks. On the basis of the safety managementsystem, we established a new quantitative index system, and issued theQuantitativeEvaluation Measures for QHSE Performance. The member companies competed toscore higher on the index system, thus giving the Company insights whether theirQHSE management is effective or mature. This approach promoted the sustainabledevelopment of ENN-NG’s QHSE management level.
Process indicatorResult indicatorExtra-point indicator
?Daily progress and maturityassessment in stages
?Quality, safety andenvironmental accidentsas well as punishments
?Pilot projects that can offerpromotion value to otherprojects, value-addedinnovations, zero accidentfor no less than three years,and attainment of safetymilestone objectives
? QHSE Quantitative Assessment Indicators
? Organisational Portrait of QHSE Performance Quantitative Assessment
Risk Control in High-risk SituationsENN-NG introduced different risk control methods for different scenarios. The Company set up a major risk prevention planto ensure zero accidents, introduced the PSM (a process risk control system for checking the integrity of the equipment andrepairing the broken parts), and analysed the operational parameters and malfunction of high-risk equipment to understand theirstatus quo and control every risk that may arise from production. In terms of operation safety management, we implemented the
Guidelines for Mandatory Routine of High-risk Operationsand adopted the principle of "Five Necessary and Five UnnecessaryConditions" (五想五不干) . We also proposed the bottom line of high-risk operations in advance, and implemented theJHAGuidelines for Analysing Operation Safety Risksto clarify the standards and methods for analysing operational safety in variousbusiness scenarios. To better manage the contractors, we formulated the six-step management method, set up a bottom lineevaluation mechanism for contractors, and introduced the offline safety map for subsidiary contractors. Moreover, we wouldcheck whether the relevant departments finished the safety map every day, followed up on how well they had addressed thepotential risks and maintained the risky parts, and comprehensively grasped the safety production operation situation.ENN-NG has strengthened the special maintenance of high-risk equipment to control the risks during production. Since July2020, we have organised several plants including Xinneng Energy Co., Ltd. (hereafter“Xinneng Energy”) and Shanxi Qinshui XinaoClean Energy Co., Ltd. (hereafter“Qinshui Xinao”) to carry out special maintenance work for high-risk equipment, completedthree sets of eight-factor evaluation criteria, and identified 18 pieces of high-risk equipment. As for high-risk equipment, we setup a professional maintenance team, compiled 494 detailed documents, completed the rectification of the process package,summarised the operational status of high-risk equipment, gave a professional maintenance solution and identified some othernew risks, thus effectively controlling the risks in the production process.
High-risk support plan
Required routine for Chief Manager
Safety culture association building
Work team safety culture
Territorial responsibilityWork shiftPerformancequantitative assessmentDisciplinary punishmentAccident managementHidden danger investigation and handlingPersonnel training Operation safety managementProcess safetyCompliance risk managementVisualisation managementEmergency managementDisposal and discharge ofe?uent, waste gas andsolid waste
Occupational health protection
Product qualityEngineering governance
Contractor management
Note:
"Five Necessary and Five Unnecessary Conditions" (“五想五不干”) refer to the following:
1) consider safety risks thoroughly; 2) take comprehensive safety measures; 3) work with a set of safety tools; 4) operate in a safe work environment; and 5) master
relevant safety skills.
Ensuring Health and SafetyENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020
ENN-NG organised its plants to check and maintainthe high-risk equipment. The Company identifiedthe equipment as high-risk based on the eight-factorevaluation method. We would set up a work team forevery piece of high-risk equipment to conduct therectification of the process package, so as to forma professional solution. The work teams carefullyexamined the problems and used the lessonssummarised to identify the potential risks of othersimilar equipment. The Company used the "point tosurface" approach to eliminate hidden dangers in thebud.On February 24, Xinneng Energy detected frostingon the top of the cold box B of Phase 1 air separationunit. After that, all the departments rigorouslyfollowed the many special maintenance plans for high-risk equipment and achieved the goal of safe stop,immediate repair and reopening. This showed thatthe team was highly capable of risk identification andprediction, which helped avoid the occurrence of risks.
ENN-NG Led a Campaign to Check and Maintain the High-risk Equipment of its Plants
Special Maintenance of High-risk Equipment
The Niutou Mountain Deep Foundation PitConstruction of Zhoushan Pipeline Project wasa highly dangerous project according to nationalstandards. During construction, ENN-NG rolledout the support plan of high-risk points, devisedthe risk guidance card, and issued the guidelinesfor high-risk operations to help on-site workersidentify potential risks, take preventative measuresand reduce operational risks. The Company alsopopularised the thinking of "Five Necessary and FiveUnnecessary Conditions" (“五想五不干”) in morningsessions to encourage workers to say no to dangersand enhance their safety awareness. We rigorouslyfollowed the construction plan to mitigate risks andensure high quality and safety construction.
ENN-NG Conducted Risk Identification and Control for Zhoushan Pipeline Project
Construction Site of Niutou Mountain DeepFoundation Pit in Zhoushan Pipeline Project
Contractor Management and AssessmentENN-NG attached great importance on construction projects. We would examined the track record of contractors, madethe work plan according to their actual conditions, gave them safety management training, and then evaluated theirperformance objectively. Only after contractors finished the training and passed the test would they be allowed to beginthe construction.? Introduction to the Six-step Management Method of Contractors
Select acontractor
Prepare a
contract
Sign the
contract
Safety
training
Workmanagement
Regularassessment
Select a contractor with good safety practices, implement shortlistedinspections of the contractor, check its background before giving a permit,and conduct due diligence investigation of safety performance.
Outline in the contract the safety expectations, safety technology standards,fundamental operation rules, and allocation of accreditation requirements forhuman resources at key posts for the contractor. Set out clear mechanismsfor test and verification.Ensure that the contractor understands the safety management requirementsof Party A and pledges to implement them. Increase the significance ofQHSE in the overall assessment process and make the evaluation moreinclusive. Give full play to the legal force of safety agreement and clarify theresponsibility, scope of work and work guidelines.Supervise and manage the whole process of safety training for contractors.Make the training a regular, professional and science-based item of theprocess.
Enhance the implementation and management of rules and norms basedon the principle of territorial management. Clarify the fundamentaloperation rules for high-risk situations and veto those who violate the rules.Communicate regularly with each other like partners.
Establish a consistent procedure to assess contractors’safety performance.Implement a science-based quantitative evaluation mechanism that combinesprocess indicator and result indicator. Explore and accumulate good practicesand reward the best players.
Ensuring Health and SafetyENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020
Building a Safety CultureENN-NG values the building of a strong safety culture. The Company adheres to the vision of“safety first, prevention firstand integrated governance”to offer regular safety training to all employees and organise emergency drills in a bid toenhance their awareness of safety and make them more capable of responding to accidents. These efforts have ensuredthe steady development of the company's production and operation activities.Safety Culture Documents
100-Day Safety Culture and Compliance Campaign
ENN-NG formulated the safety culture programme:
Understanding the ABC of ENN-NG’s Safety Culture--Chip of Safety.TheCompany seeks to build greater consensus on safety among employees by implementing the safety management systemand building a safety culture. In this way, employees are more motivated to pursue safety practices in the workplace ratherthan just obey orders to do so. This greatly enhanced the safety management level of the Company.
In 2020, ENN-NG set up a task force to promote the safety culture and launched the Second 100-Day Safety Culture andCompliance Campaign to increase all our employees’awareness of safety and compliance and help them recognise andcontribute to the culture. While ensuring our normal operations, we organised diversified activities and thus fostered agood environment for safety culture building.
?We organised a survey to look at employees’
perception of the safety culture, distributed4,435 questionnaires. Then we analysedthe data obtained and gave the results andfeedback.
?We published the first edition of
Understanding the ABC of ENN-NG’s SafetyCulture--Chip of Safetyand distributed itamong the member companies.
?We organised a series of emergency drills andsimulated the following scenarios, includingthe leakage of ethylene storage tanks,evacuation and firefighting in fire accidents,electric shocks and CPR exercises.
?We offered on-site safety culture training andtutoring to enhance the awareness of safety.An Emergency Drill
Emergency Drill Sites
In April 2020, ENN-NG held the kick-off ceremony of the Second 100-Day Safety Culture and ComplianceCampaign. The Campaign was a part of the activity series launched by the Company to promote the safetyculture and compliance work, raise the awareness of its partners and help employees form the habit ofpursuing safe practices at work.The Campaign comprised three stages: Employee Health Month (May), Safety Month (June) and Safety andCompliance Month (July). It was designed to promote the sustainability of the member companies with thesafety and compliance culture.
ENN-NG Kicked off the Second 100-Day Safety Culture and Compliance Campaign
Kick-off Ceremony of 100-Day Safety and Compliance Culture Campaign
Ensuring Health and SafetyENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020
Employee HealthEmployee health underlies ENN-NG’s growth momentum, helps build a positive employerimage and promotes our sustainable development. It also shows our commitment toputting people first in our corporate culture. We have regularly tested occupationalhazards for our employees, offered health screening programmes, distributedprotective equipment for those in need, and improved employees’healthand safety. We also care about our employees’psychological well-being byproviding counselling services to help them let off steam. These measureshave helped create a healthful and relaxed working environment.Occupational Safety and HealthThe member companies of ENN-NG have regularly tested occupational hazards, monitored employees’health, and offeredsufficient protective equipment for those who are in high-risk positions, so that employees’ safety and health is guaranteed.
Regulardetection foroccupational
hazards
Monitoringemployeehealth
Providingposition-specificprotection
?Identification of hazards in new projects,adoption of control measures and continuallyupdating the list of hazards.
?Regular monitoring and assessment ofoccupational hazards.
?New employees are provided with pre-screening bodycheck which include routine examinations and targetedexaminations for hypertension, heart disease, and hearing. Employees with high blood pressure, heart disease orhearing impairment are not assigned to jobs with occupational health hazards at gas stations or inspection stations.
?For positions with occupational health hazards, at least one physical examination is required to be conducted everyyear.
?Records are kept of occupational health examinations. If employees are foundto be suffering from work-related illnessafter resignation, the records are usedto determine whether work-related factors contributed to the the illness. If so,employees may apply for retroactive compensation up to ten years after resignation.
?Protective equipment and reasonablerotation hours are provided for positions withoccupational hazards.
?Employees who work in a noisy environmentfor a long period of time are required to wearprotective equipment, such as earplugs, and arerequired to take breaks.
?Positions exposed to high temperatures arearranged in varying shifts to avoid exposure forlong periods of time, and drugs are given to coolthe temperature.
Safety Training
With COVID-19 raging in early 2020, ENN-NG launchedan online model of safety training. Different types ofcourses were developed for directors, safety supervisors,team leaders and employees to enhance their awarenessof safety. The courses covered a wide variety of topics,including the laws and regulations of safety, safetyleadership skills, double prevention mechanism ofwork accidents, accident management, safe productiontechnology, emergency response and team safety building.Throughout 2020, 4,306 employees completed the onlinecourses, including 235 directors, 311 safety supervisorsand 654 team leaders.
Indicator2020
Personnel receiving safety training503,096—Department leader (or above)774—Safety manager5,160—Employee497,162
ENN-NG launched the 100-Day Safety InspectionCampaign to forestall workplace accidents. TheCampaign consisted of three stages. First, themember companies should discover and investigatetheir own problems. Second, the joint inspectionteam would check whether the problems had beenresolved. Third, both sides need to draw lessonsfrom the experience.In the first stage, the member companies of ENN-NG organised 562 checks, detected 5,597 hiddendangers, initially completed 5,099 rectifications, andthe rectification completion rate was 91%. For thoseuncorrected items, we formulated correction plansand temporary measures.In the second stage, the CEO of ENN-NG went to thework site in person to check the progress. Also, weadopted the form of cross-checking by internal andexternal experts. We achieved remarkable results inhidden danger inspection and correction and formeda long-term mechanism for carrying out this work.
ENN-NG Launched the 100-Day Safety Inspection Campaign
100-Day Safety Inspection Campaign Work SitesCompleted
5099
rectificationitems at the first stage, andformulated rectification plansand temporary measures foruncompleted rectification items.
Ensuring Health and SafetyENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020
Caring about Employees’ Physical and Mental HealthWe care about the physical health and mental well-being of every employee andseek to build a responsible and safe work environment. The member companiesof ENN-NG have organised an array of activities to care about employees from thespiritual level, and guide them to work healthily and live happily. For example, theCompany made the first work-break exercises and advocated every employee shoulddo them at break. We regularly informed the employees of first-aid knowledge andprevention of common diseases and occupational hazards, and established healthstations, health shelves and health studios to store the files of employee healthrecords and provide such services as health monitoring and healthcare guidance tothose in need. In protecting their mental well-being, we listened to our employees’
feelings and opinions and gave them counselling if necessary. We also organised the“Safety Tips Sharing Session”to spreadthe knowledge of mental wellness that most employees were interested in. Moreover, a mental well-being toolkit wasdistributed to help employees learn how to keep healthy psychologically and manage fatigue at work.
During the COVID-19 pandemic in 2020, ENN-NG took every possible step to respond to the virus and protect the healthof its employees. For example, we regularly disinfected the office areas, distributed masks to employees, controlled theintensity of personnel, postponed or cancelled big conferences and moved online. We curtailed the business trips andavoided travelling to medium- and high-risk areas. The cafeteria staff delivered the meals to the office desk in order toreduce the intensity of staff dining in the cafeteria. With the joint efforts of all our employees, we recorded zero COVID-19infection in 2020.
On May 8, 2020, Xinneng Mining established the Employee Health Studio to better provide health informationservices, disease prevention strategies and healthcare guidance. The Studio was built in the Employee HealthMonth as the first part of the 100-Day Safety Culture and Compliance Campaign. It was integral to the“Double100-Day Objectives” to realise the Company’s self-driven value and represented a breakthrough pillar forfurther implementing the Communist Party of China (CPC) Group’s work plan Constant Breakthroughs andConcrete Steps to Create Value.Xinneng Mining CPC Work Federation studied the CPC Group’s work plan and communicated with theQHSE Empowerment Group to build a task force for employee health. The Company clearly defined theresponsibilities, established a health studio, and analysed the medical examination results of employees inApril. In this way, six work priorities were determined. The Health Studio could build medical records and filesfor employees and give them physical check-ups. It also and offered follow-up services for the target group,health information counselling, healthcare guidance and professional lectures.
Xinneng Mining Established the Employee Health Studio
On May 25, 2020, ENN-NG hosted the“Safety Tips Sharing Session”, which focusedon sharing knowledge of mental health that most employees were interested in.Over 40 people from the Empowerment Department of the headquarters attendedthe Session.At the beginning of the Session, participants shared how they perceived andreleased stress and raised their questions. Then the trainer gave the lectureStressManagement and Emotion Regulation, in which he talked about the definition andtypes of stress, the sources and management of stress, stress management inorganisations and the skills necessary to let off steam. Before the Session ended,participants started to practise the skills learned with some light music.
Safety Tips Sharing Session
Launching Ceremony of the Employee Health Studio
In 2020, ENN-NG built a number of health studiosand health shelves in office buildings to show theCompany’s endeavour to care about employees,improve their career happiness index and offerhealth support based on real work scenarios.
ENN-NG Built Employee Health Studios and Health Shelves
Employee Health Studio
ENN-NG Organised the“Safety Tips Sharing Session”and Kick-startedthe Activities to Create Value Happily
Over
employees from theEmpowerment Departmentattended the session.
Creating a Vibrant Workplace
Creating a VibrantWorkplace
ENN-NG insists on putting people rst andintegrates the respect and protection of humanrights into the corporate culture. We protect thelegitimate rights and interests of employees andcare for their development and growth. We haveestablished a sound benet system and trainingplatform for employees and put effort to createan inclusive, equal, and mutually supportiveworkplace, so that our development results canbenet all employees.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020Creating a Vibrant Workplace
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020Creating a Vibrant Workplace
Employees' Voice Platform
Labour Practice
We insist on legal and equal employment. We maintain a reasonable and diversifiedremuneration mechanism, protect the rights and interests of employees, and care for theirphysical and mental health. We emphasise the democratic management of employees and createa fair and open workplace to increase employees’ enthusiasm and team cohesion.
Remuneration and Bene?ts
Protection of Rights and Interests
EmploymentENN-NG strictly abides by theLabour Law of the People’s Republic of ChinaandLabour Contract Law of the People’sRepublic of Chinaand has formulated full-process management regulations and detailed rules for all employees based onthe Company’s condition. We have established mechanisms for recruitment, promotion, and labour contract terminationin accordance with the law. All employees have signed labour contracts with the Company based on the principles ofequality and voluntariness. The Company respects the personal freedom and vacation rights of employees and prohibitsforced labour. The Company strictly abides by theProvisions on the Prohibition of Using Child Labour of the People’sRepublic of China and the laws and regulations on prohibiting child labour in countries and regions where it operates. Wecheck employees’identity documents during recruitment to eliminate child labour. The Company respects the rights ofwomen workers and ethnic minorities, and prohibits any forms of discrimination based on gender, ethnicity, religion, andnationality. By December 31, 2020, the Company had a total of 39,282 employees, including 39,124 full-time employees and158 part-time and intern employees. The turnover the year was 3,749, with a turnover rate of 9.54%.
We emphasise the construction of employee remuneration, benefits, support systems, and a better remunerationdistribution system. We implement an incentive policy that combines salary and non-salary incentives, committedto providing employees with competitive salary packages in the industry. On this basis, we have built an ecologicalorganization and implement a system that integrates value identification, evaluation, and sharing. Our business partnersat all levels receive direct commissions based on their value created for customers, which maximises the enthusiasm andself-drive of employees. We have enhanced the differentiated incentive model, promoted the implementation of mid- andlong-term incentives, and formed a system with multiple goals, higher value creation, and more sharing for employees. Wehave established a market-oriented compensation incentive mechanism, which includes project incentive awards, marketdevelopment incentives, cost-saving incentives, year-end performance bonuses, and awards for outperformance.ENN-NG has a sound employee benefit system. The Company pays social insurance and housing provident funds foremployees in strict accordance with national regulations to fully ensure the legitimate benefits for them. We also providesupplementary medical insurance for employees, pays group commercial insurance for serious illnesses and deaths fromserious illnesses, and provides maternity allowances for female employees. The Company conducts physical examinationsfor employees every year and establishes employee health records. We also provide employees with high temperaturesubsidies and winter protection supplies.ENN-NG is committed to creating an open, transparent, diverse, and equal workplace, and effectively protects thelegitimate rights and interests of employees. We support employees’freedom of association, assembly, and joining tradeunions in accordance with the law. We have formulated theManagement Measures for Employee Attendance and LeaveRequests to protect employees’rights of normal leave. We have established channels for employees to communicate andappeal in accordance with theEmployee Code of Conduct of ENN Group. In terms of protecting the rights and interests ofspecial employee groups, the Company provides free apartments for new recruits from other places for six months. Femaleemployees can take prenatal check-up leave, maternity leave, and breastfeeding leave when they are pregnant or givingbirth. Male employees can take paternity leave for their spouse’s giving birth.
? Number of Employees
? Turnover Rate
Total number of employees (person)
Turnover rate by genderTurnover rate by age
Age structure of employees (person)
Male
Male
Female
Female
Under 30 years old
Under 30years old
30-50 years old
30-50years old
Over 50 years old
Over 50years old
29,656
9,626
9.42%
12.43%
9.92%
7.93%
8.30%
3,101
12,047
24,134
Communication with EmployeesThe Company has a sound mechanism for employee communication and engagement. We encourage employees toengage in corporate management, offer advice and suggestions, and promote harmony between of the Companyand employees. We implement a variety of employee communication channels, represented by DemocraticAppraisal and Employee Voice Platform, and extensively listen to employees’opinions and suggestions. We alsohave a follow-up and improvement mechanism.
To facilitate democratic communication, we have ademocratic appraisal team composed of employeerepresentatives to extensively listen to reasonablesuggestions from employees. Democratic appraisalincludes interview with the chief, democratic life meetings,appraisal portrait, and surveys. Our goal is "FourExtensive’s and Two True’s"(“四个广泛两个真实”), so thatthe chief can grasp the situation, improve themselves andmanagement, and nourish the democratic ecosystem.Since its establishment, the democratic appraisal platformhas seen improvement every year. It encourages equalcommunication and advice, and builds a bridge betweenemployees and the chief.
We earnestly pay attention to the demands of ouremployees. We have an employee research platformwith regular questionnaire surveys for all employeesto collect their opinions and suggestions. Thequestionnaire covers several topics such as companyoperations, safe construction, digital empowerment,cultural activities, and rule setting. Based on thesurvey results, we analyse and summarise the keyissues of concern and negative comments fromemployees of the year and send them to responsibleunit for improvement, and prepare improvementreports. Employee Development
Democratic Appraisal
Senior managementemployees (person)
1,229Middle managementemployees (person)
3,488Primary-levelemployees (person)
34,565Employees with abachelor’s degree(person)
11,471Employees with athree-year collegediploma (person)
13,698Employees witha high-schoolgraduation certificateor below (person)
13,150Employees with amaster’s degree orabove (person)
Employees withdisabilities (person)
Ethnic minorityemployees (person)
1,338New entrants (person)4,476
Note:
"Four Extensive’s and Two True’s"(“四个广泛两个真实”) refers to the following: establish an extensive democratic appraisal team; extensivelylisten to employees’voice; extensively communicate with primary-level employees; extensively listen to comments and suggestions; knowthe true self; obtain true opinions.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020Creating a Vibrant Workplace
Employee DevelopmentENN-NG upholds to the philosophy of employees and the Company growing together. We pay attention to the developmentneeds of employees at different stages, improve our training system, and create opportunities for employees to growcontinuously.Personnel TrainingThe Company practices independent employment of member companies inaccordance with theRules on Personnel Appointmentissued by ENN-NG.Besides ensuring the smooth flow of employees and preventing risks, theCompany promotes the efficient operation of member companies and theimplementation of new business partnerships. We also attach importance toemployee training and career growth. We have a sound training managementsystem and a curriculum system that fits the Company’s business characteristicsand requirements for positions, providing an important platform for improvingemployees’ professional skills. ENN-NG’s training in 2020 is shown in thefollowing table:
We launched training programmes for a three-level echelon and Echelon 2020. According to the ENN-NG three-levelemployee development path, we created a balanced system of“talents ready for the present and the future”for theCompany. Among them, we set up the FLE project for general managers, and the Lingxiang Project for chief directors andthe convener. Our training structure is shown in the figure below:
Total employee training sessions63,535Number of employee trainees38,684Number of male employee trainees28,111Number of female employee trainees10,573Number of senior manager trainees1,236Number of middle manager trainees3,427Number of primary-level employee trainees34,021Percentage of employees obtaining professionalqualifications (divided by discipline)
3.25
Number of employees obtaining professionalqualifications (divided by discipline)
1,275Total training hours599,024.10Training hours of male employees16.14Training hours of female employees11.91Training hours of senior managers82.65Training hours of middle managers18.50Training hours of primary-level employees15.07
? Overview of ENN-NG's training projects for a three-level echelon and Echelon 2020
Three-level Employee Development Path of ENN-NGENN-NG Training Programme for
Echelon 2020GeneralmanagersFLE projects, etc.Chief Director andConvenerLingxiang ProjectBusiness/Professional VeteranSelf-motivated organizations andhigh-potential projects
FLE projects (advanced training camp/
youth pioneers’ camp)Lingxiang Project
Guanlang Eyas ProjectXinneng Energy Seed Project
Xindi Engineering Chenggong Project
Lingxiang Project is an employee training projectinitiated by ENN-NG. It is also the first strategicemployee training project for ENN-NG’s needsfor employee training based on its strategy andbusiness development. Lingxiang Project focuseson broadening trainees’thinking and horizons andimproving core skills and abilities. It also includesexpanding professional knowledge and skills aswell as filling gaps in basic abilities and thinking.Lingxiang Project combines leadership and businesscontent to improve the leadership and work skillsof managers in the professional field in a targetedmanner, which was well received by the trainees.In 2020, Lingxiang Project delivered a total of 18courses and 9 research projects and organised 5training sessions for 230 trainees.
Lingxiang Project
A class of Lingxiang Project
Number of Trainees
Percentageof Trainees
Training Hours PerCapita
Number of female employee trainees
Number of male employee trainees
28,111
person
10,573
person
Number of senior manager trainees
person
1,236Number of middle manager trainees3,427
person
Number of primary-level employee trainees34,021
person
Talents ready for
the present
Talents readyfor the future
In 2020, Lingxiang Project delivered a totalof
courses and
research projectsand organised
training sessions for
trainees.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020Creating a Vibrant Workplace
For business and professional veterans, we carried out high-potential projects of member companies, including trainingprojects such as the Xindi Engineering Chenggong Project, the Guanlang Eyas Project, and the Xinneng Energy Seed Project,in an effort to provide employees at every level with the most suitable growth opportunities.
For new employees, ENN-NG has developed a 90-day Integration Project for New employees. From the perspective ofemployee experience, we prepare enrolment procedures and resources for employees, and have formulated a detailedprobation plan. During the probation period of new employees, we communicate with them on probation indicators instages.
Xindi Engineering Chenggong Project
Guanlang Eyas Project
Xinneng Energy Seed Project
Based on the pain points faced by the organization and targeting market customers, businesses, andteams, the project summarised the areas that we urgently need to improve and took measures in theseareas. Under this plan, we reached a consensus on strategic direction, business objectives, organizationalsettings, and mechanism reforms, realised the transformation of thinking in essential thinking and innovativebreakthroughs, and achieved the combination of EPC integration and culture.
The Company’s business diversification is advancing rapidly, and the overseas market share is growingrapidly year by year. Against this strategic backdrop, we launched the Guanlang Eyas Project to accelerateechelon construction. We have set three modules, namely, thinking upgrades, consolidating foundations, andmarketing breakouts, with which we achieved our goals with training and evaluation, project practice tasks,and position practice.
According to the employee survey in 2019, the core team at this stage was of the right age, but the middlemanagement and core business veterans were weak and there were gaps in them. For this situation, welaunched the Xinneng Daqi Seed Project. The project helped us develop strategic thinking and businessawareness, digital awareness and innovation, and product thinking for employee trainees, and improved theCompany’s middle management and core business veterans.
Employee DevelopmentWe provide employees with sound and mature promotion channels,guiding and encouraging them to grow independently and achieve self-worth improvement. In this way, the common progress of employeesand the Company can be promoted.We have a sound role system based on the difference in the valuecreated by employees. It is subdivided horizontally by work areas anddevelopment channels, and vertically by role value and ability growth.On this basis, we have formulated a system of rules on growth. Eachemployee summarises his or her work characteristics with“work styletags”, and achieves promotion level by level through comprehensiveevaluations.
In September 2020, we launched the professional label appraisal. To ensure thesmooth and effective progress of the work, we recorded the data of the wholeprocess, including applicants’ registration, basic condition verification, filling-out of value creation certificates, appraisal meeting minutes, and publicity ofappraisal results. The applicant’s personal growth files and role tags and growthappraisers’verification records and role tags were correlated and updated. Thework strongly encouraged employees to actively pursue growth opportunitiesand business partners to learn and grow independently. It also promoted theformation of an independent growth atmosphere where everyone took theinitiative to seek opportunities, obtain more tags according to capabilities, andaccumulate energy for growth.
ENN-NG's Professional Tag Appraisal Encouraging Employees to Grow with Self-motivation
? ENN-NG Role System
Management DirectorDevelopment Path
Professional Development PathManagement DirectorTechnicalProfessionalOperation
Leaders that lead membercompanies to achieve goals:
?General manager of industrycompanies
?General manager of membercompanies
Technician:
?Research anddevelopment
?Production andengineeringtechnology
?Digital technology
?…
Professional:
?Strategy
?Accounting andfinance
?Talent and careers
?Brand
?…
Operator:
?Multi-skilled worker
?Lineman
?Production worker
?Customer servicerepresentative
?…
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020Creating a Vibrant Workplace
Mass InnovationWith the mission of“creating a modern energy system andimproving the quality of people’s life”, ENN-NG vigorouslyencourages innovation empowering enterprise development.For many years, we have insisted on holding employee activitieswith mass innovation as the purpose, to arouse the innovationpassion of front-line employees. We have formulated and issuedtheReward Measures for Technical Achievementto providecash rewards for technology research and development, patentacquisition, technical standard formulation, technical articles,and Five Small Innovations. To encourage mass innovation, theCompany organises competitions for Five Small Innovations andLean Operation Competition every year, and launches the HoverCup skill competition. There are also incentive policies, wherecompetition results are also linked to promotion in addition to cashawards. ENN-NG won many awards in ENN Group’s competitionsand external competitions. Besides the annual awards fortechnological achievements, the Company has also set incentivesfor enterprise technological achievements. We award all technicalachievements that meet the standards, including technicalprojects, patents, standards, and articles, for the purpose ofencouraging technological innovation and sharing technologicalvalue.
Techniques,methods,products,and tools andinstrumentscreated withinENN-NG
Small invention
Technicaladvancementsand achievementsthat significantlyimprove theoperation processin some aspects
Smallmodificationson existingequipment orinstruments toimprove efficiencyor making gooduse of waste
Small reformationSmall modification
Complete andpractical shape,structure,product, andtechnique design
Small design
New ideasproposed byfrontline and non-managementemployees formanagement orproduction of theCompany
Small suggestion
Definition of Five Small InnovationsSmall inventions, reformation, modifications, designs, and suggestions that are
not included in any technical projects.
? Rules of ENN-NG on self-motivated growth
“Work Tag”Talent Portrait:
Information about my work
Growth Appraisal
Development pathand conditionsExperience +energy beanCompulsory and optionalknowledge and skills,learning and sharingMoral principles
Role Tag
Self-motivated
Growth(Rules)Definition of ENN-NG for Five Small Innovations:
By December 31, 2020
newly appliedpatents
patents forinvention
for researchand investment
RMB 685million
effectivecopyrights
effectivepatents1,455
effectivetrademarks
Value Tag
Learning TagMoral TagPersonality Tag
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020Creating a Vibrant Workplace
Care for EmployeesENN-NG emphasises improving and building the vitality of the organization and is committed to creating a warm and lovingworkplace for employees. Besides continuously improving the care mechanism, we also actively carry out a variety ofcultural and sports activities for employees.Assistance for Employees
Cultural and Sports Activities
The ENN-NG trade union has a long-term mechanism for employee care to reducetheir financial burden caused by major illnesses, making them feel like home. Welaunched the Half-Day Mutual Aid Donation campaign and upgraded it in 2020 toinclude employees’immediate family members in the scope of care. A total of 2,945people from ENN-NG headquarters and member companies made donations inthe campaign. The campaign has granted more than RMB 170,000 of mutual aid to21 groups of critically ill employee families. At the same time, we care attentively byimplementing practical visit, "the 3 Must Visit" (“三必访”), care for those in need, andother daily care work.In 2020, ENN-NG member companies carried out cultural and sports activities themed by traditional festivals, culturalbuilding, and production operations. In the special situation in 2020, we held a series of festival activities related to theMoon Festival, anniversary of the founding of the Company, the International Women’s Day, and the May 4th Youth Day.We also organised an anti-pandemic knowledge quiz, a photography competition production resumption, psychologicalcounselling for employees working from home, and online fitness courses, as well as sports competitions and socialactivities for single men and women. These activities created a warm and lively corporate culture for employees andenhanced team cohesion.
In September, to celebrate the 71st National Day, Mid-Autumn Festival, and the 26th ENN Group MoonFestival, Xinneng Energy organised a“Singing Good Life with Red Songs and the Company Song”chorusshow and a“My Motherland and Me”pop-up activity. The event attracted more than 300 employees frommember companies and empowerment organizations and their family members. The event was full ofpassion and the performers were in high spirits. Ten chorus teams from the secondary trade unions ofXinneng Energy sang their incomparable love for the beautiful life in China with the most beautiful andloudest singing voices.
Xinneng Energy“Singing Good Life with Red Songs and the CompanySong” for Three Festivals
Shanxi Qinshui ENN Clean Energy Celebrating the August 6th,Anniversary of the Founding of ENN Group
The“Singing Good Life with Red Songs and the Company Song” chorus show of Xinneng Energy
To celebrate the 31st anniversary of the founding of ENN Group, Shanxi Qinshui ENN Clean Energy organised aseries of celebration activities to review the Group’s history, celebrate its business achievements, and expressblessings and wishes. Among the activities, Shanxi Qinshui ENN Clean Energy responded to the Group’s call forthe“Year of Health”and held sports activities such as basketball, billiards, badminton, table tennis, tug-of-war, andfun relay races to encourage physical fitness and create a healthy and happy organizational atmosphere. ShanxiQinshui ENN Clean Energy also held a police-enterprise basketball match with the local police station, whichenhanced the relationship between the Company and local government departments, and created a harmoniousand favourable social environment for the stable development of the Company.
Celebration activities for the August 6th anniversary organised by Shanxi Qinshui ENN Clean Energy
Note:
"The 3 Must Visits"(“三必访”) refers to the following: congratulate the employee on his/her marriage, to visit the employee when he/she is illin hospital, and to console the employee or his/her immediate family member he/she dies.
Advancing Together
with Stakeholders
Advancing Togetherwith Stakeholders
ENN-NG has a wide scope of business. Its value chaininvolves various stakeholders. To achieve sustainabledevelopment, we pay attention to the demands ofstakeholders and give back to the society. We improveand regulate our supplier management to providecustomers with satisfactory products and services.We also leverage our advantages to promote industryprogress and join efforts to create a harmoniousindustry ecosystem through alliances and cooperationso as to achieve mutual benet and coordinateddevelopment.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020Advancing Together with Stakeholders
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020Advancing Together with Stakeholders
Supply Chain ManagementENN-NG insists on responsible sourcing. The Company regulates supplier management in accordance with the open,fair, and just sourcing principles, and improves sourcing procedures and mechanisms to create a favourable competitiveenvironment for suppliers and a sustainable supply chain. The Company has selection, evaluation, and exit mechanismsfor suppliers and contractors. Factors such as business ethics, employee rights, quality and safety, environmental impact,and social impact are included in the evaluation standards for suppliers and project contractors. The Company will notcooperate with suppliers or project contractors who do not meet the national requirements on environmental and socialrisks.Supplier Management SystemENN-NG enhances supplier managements in strict accordance with theTenderingand Bidding Law of the People’s Republic of Chinaand other laws and regulations.Its member companies have supplier management policies and systems based ontheir business characteristics and require suppliers to comply with relevant laws andregulations, take measures to reduce environmental impacts, and protect labourrights. For example, ENN Energy has several supply chain management systems,includingthe Measures for Supplier Access and Management, the Measures forSupplier Performance Evaluation, the Notice on Regulating the Bidding Practice of GasProject Construction Units, the Implementation Measures for the Access, Evaluationand Exit of Partners in the Integrated Energy Ecology (Product and Service Suppliers).It also requires all suppliers to comply with theENN Energy Supplier CorporateSocial Responsibility Code of Conduct and firmly align themselves with ENN Energy’sbusiness ethics of honesty and integrity.
Supplier SelectionIn terms of supplier selection management, ENN-NG member companies manage andrecord supplier information on the sourcing platform, evaluate their performance,and implement dynamic management throughout the entire process from supplieradmission to exit. To ensure that suppliers meet corporate social responsibilityand practice green and responsible sourcing, we take suppliers’environmental,social, and corporate governance (ESG) risks and responses into account in supplierselection assessment. We require suppliers to put effort in environmental protectionin manufacturing, not to violate relevant national laws and regulations, and to selectenvironmentally friendly materials to reduce environmental pollution and impact.They shall also protect and safeguard the legitimate rights and interests and benefitsof employees and create a harmonious labour relationship.Supplier Monitoring and EvaluationTo ensure an open, fair, and just sourcing platform, ENN-NG member companies havea“supplier blacklist”management mechanism. Suppliers suspected of falsification andmalicious operations in the process of certification and inspection will be includedin the blacklist and publicised. Moreover, we organise regular sampling inspections,appraisal, and evaluation of the suppliers’product supply, and the evaluation resultsare open and transparent. We rank the suppliers based on the evaluation results andwill remove the suppliers whose evaluation results fail. We also require suppliers tosign aCommitment to Integritywhen signing contracts to strengthen anti-corruptionmanagement and record the suppliers’integrity performance on the sourcingplatform.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020Advancing Together with Stakeholders
Product Quality and Customer ServiceAs an industry leader, besides ensuring a safe and stable energysupply, ENN-NG regulates the quality of project construction andprotects customer privacy. In a customer-centric manner, theCompany helps customers solve problems, enhances customersatisfaction, and continuously improves product quality andcustomer service.
Guarantee Engineering and Product Quality Assurance
The Company attaches great importance to the quality of engineering projects and product delivery to ensure that it providescustomers with high-quality services and products. For regulated management and effective control of project quality,especially in the process of project implementation, ENN-NG has a number of rules and regulations, including theManagementMeasures on Project Quality of Energy Technology Engineering Companies,Management Regulations on Construction ProjectQuality,Supervision Provisions on the Implementation of Mandatory Standards for Project Construction,Uniform Standardsfor Construction Quality Acceptance of Construction Projects, andManagement Rules for Quality Inspection Technology forBuilding Construction and Municipal Infrastructure Projects. They clarify the organisational structure and responsibilities,management systems, management objectives, quality evaluation standards, and acceptance of project quality management.They not only guarantee the quality of delivery but also improve the Company’s overall performance and promote theCompany’s sustainable development. Xinneng Energy, a member of the Company, has set up strict product quality controlprocedures for its methanol and other products. Xinneng Energy implements strict procedures and inspection standards forall production links, including methanol production process control to product methanol sampling and verification, to ensurethat the outgoing products meet national standards and the needs of customers. Xinneng Energy has formulated theXinnengEnergy Product Sales Management Measures, Methanol products are required to meet the national standard of superiorquality before leaving the factory. At present, the Company’s methanol products superiority rate reaches to 100%.
To ensure the successful pickup of Stena Blue Sky, the first LNG carrier to be docked at the jetty of the ENNZhoushan LNG Receiving Terminal Project, Zhejiang Zhoushan LNG Receiving Terminal worked on qualitymanagement and performed comprehensive and systematic management. The terminal achieved the“fastestunloading for the first ship”and“the shortest commissioning time of China’s first and largest ultra-lowtemperature BOG compressor”in the industry in China and was awarded the“China Industry New Record”
The Zhejiang Zhoushan LNG Receiving Terminal Project Successfully Receiving LNG Carriers at Its Jetty
certificate by the Expert Review Committee of China Industry New Record. The project provided valuable experiencefor the planning, organisation, and implementation of future first ship unloading of large-scale LNG projects in China.It set a new record in BOG compressor commissioning and operation in terms of optimising the commissioningprocess and achieving clean production, poly-generation, and low carbon emissions.
Establish a soundorganisation system forproject quality managementand set up positions ofproject manager, chieftechnical director, qualitymanager, design manager,sourcing manager,construction manager,construction engineer,and technician, where theproject manager shall bearprimary responsibility forengineering quality
Responsible for theimplementation andmanagement of the“threeinspection system”forproject quality, and controland inspect the compliance(effectiveness) of the qualitymanagement systems,personnel qualifications,and testing equipment ofrelevant subcontractors inaccordance with contractprovisions and qualitymanagement requirements
Implementnational laws,regulations, policiesand mandatorystandards, andpublicise andimplement thequality managementdocuments issuedby the Company andsuperior supervisionunits
Supervise andinspect the workof quality-relatedproject managementpersonnel, and putforward necessaryrequirements andsuggestions on qualitymanagement
Prepare projectquality plansbased on thequality policy andquality objectives,set projectquality objectivesand qualityrequirements,and supervise theimplementation ofthem
Cooperate withthe supervisionand inspectionof the owner,quality supervisionauthorities, andsupervisors, andactively respond torectification
Responsible foroverall projectquality supervisionand management,communication andcoordination, andidentify and preventquality risks
Collect quality-relateddata, conduct regulardata analysis, andimplement qualitycorrection
By the end of 2020,
membercompanies obtained the ISO9001certification.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020Advancing Together with Stakeholders
Safe and Stable Gas SupplyENN-NG is committed to providing a safe and stable energy supply. Relying on its digital platform, we increase the patrolinspection of equipment and facilities in the gas supply pipeline network and monitors the pressure fluctuations ofupstream and downstream and key users in real time. During extreme weather, major events, and holidays, we make everyeffort to guarantee the supply of natural gas to households to maintain social stability.
In the winter of 2020, southern China’s Jiangsu,Zhejiang, and Shanghai confronted extremely coldweather. The pressure of natural gas supply inthese areas suddenly increased, and the supplyof natural gas in the pipeline network of ZhejiangProvince faced unprecedented challenges. Asa natural gas source supplier for the provincialpipeline network, ENN-NG Zhoushan ReceivingTerminal overcame the effects of cold weatherand innovated ship unloading operations and thejoint inspection mechanism. On the basis of non-contact pandemic prevention and with precisedeployment, strong support from the technicalteam, and the unyielding dedication of ENNemployees, the terminal completed the task ofLNG peak shaving under extreme cold weather.In this way, ENN-NG won another tough battle tosecure natural gas supply for households, urbaninfrastructure, and industrial production.
In October 2020, ENN-NG and PipeChina signed the Contract on the Use of Liquefied Natural Gas ReceivingTerminals, becoming the first private enterprise signed by PipeChina after the fair opening of the oil andgas pipeline network infrastructure to the society. In the winter of 2020, ENN-NG and PipeChina EastGuangdong LNG Receiving Terminal had a comprehensive consultation on the use of the window period andformulated pilot and escort implementation plans and emergency plans, making every effort to ensure thesafe entry, unloading, and departure of LNG ships. On the morning of December 29, the 65,000 tons of LNGindependently imported by ENN-NG was successfully unloaded at PipeChina East Guangdong LNG ReceivingTerminal. That was the first time for ENN-NG and the PipeChina East Guangdong LNG Receiving Terminal tocomplete the import offloading and also an important practice for the“fair opening” of PipeChina’s receivingterminal infrastructure to the market. The 65,000 tons of LNG was supplied to urban gas and industrialusers in southern and eastern China in tankers in an orderly manner, to alleviate the increasingly tight supplyof natural gas since mid-December.
Zhoushan Receiving Terminal Completing LNG Peak-shaving Production Against Cold Weather
ENN-NG Partners with PipeChina to Import LNG to Secure Supply in Winter
Zhoushan Receiving Terminal safeguarding supply in winter
LNG independently imported by ENN-NG was successfullyunloaded at PipeChina East Guangdong LNG Receiving Terminal
Customer Privacy ProtectionENN-NG attaches great importance to customer information and privacy securityand strictly abides by laws and regulations on information security. We optimiseour information management security rules and management system, enhanceemployees’awareness of information security, and regulate the use of informationsystems. To safeguard customer privacy, we rigorously protect customerinformation, sign privacy and confidentiality agreements with customers, and setmanagement permissions for customer information. In this way, we prevent theleakage of customer information and ensure the proper protection and managementof customer privacy and information security.
ENN-NG strictly implements provisions on the collection and use of customer information in theConsumer RightsProtection Law of the People’s Republic of China, and abides by theE-Commerce Law, theCybersecurity Law, andtheGuidance on Internet Personal Information Security Protection. ENN Energy, a member company of ENN-NG, hasformulated theENN Energy Information Security Management Regulations,ENN Energy Information Security RiskManagement Measures, andENN Energy Data Privacy Policyand their supporting systems. In 2020, ENN Energy issuedtheOperational Regulations on the Preparation, Issuance, Use and Custody of ENN Energy’s Documentsto better regulatethe preparation, use, and archiving of company documents. TheRegulationsrequire relevant personnel to strictly abide by
Institutional Framework
In the face of the severe situation of the sharp increase in natural gas consumption and the shortage ofgas sources at the end of 2020, to ensure the orderly progress of natural gas transmission and distributionin winter and the coming spring, Ningbo Intercity Energy Trading Co., Ltd. adhered to the orientation ofcustomer demand and managed to coordinate shipping schedules, optimise windows of the terminal, andincrease the supply of resources. It actively communicated with Zhejiang Energy Pipeline Network, thepipeline transmission provider, to ensure the pipeline transmission capacity and the hourly peak-shavingcapacity during peak hours. It also worked closely with member companies to improve the accuracy offorecasts for gas utilisation plans and secure the supply of natural gas resources to downstream customers.
ENN-NG Ningbo Intercity Energy Trading Co., Ltd. Fully Cooperating withMember Companies to Secure Winter Supply
For their performance of securing supply in winter, Ningbo Intercity Energy Trading Co., Ltd. and NingboBeilun ENN Energy Co., Ltd. received letters of appreciation from ENN Huzhou, ENN Yongkang, ENNPingxiang, and ENN Gas Bengbu.
ENN-NG partners withPipeChina to import65,000
tons of LNG.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020Advancing Together with Stakeholders
Digital Security Empowerment GroupSecurity ComplianceAudit Group
Security Attack and InfiltrationPrevention Group
Security InnovationProduct Group
Security OperationMonitoring Group
Industrial Control IoTSecurity Group
the rules on the use of documents and pay attention to confidentiality of information. ENN Energy has also optimised theinformation security assurance organisation. The Digital Intelligence Transformation Committee is responsible for overallcoordination, and the Digital Security Empowerment Department for planning and decision-making. They mainly overseeinformation security, such as planning ENN Energy’s information security strategy, supervising and managing securitytechnology institutions, conducting security audits, and maintaining system accounts. We will continuously optimiseinformation security strategies and related system documents and organise information security assessments, securityaudits, and education and trainings to enhance employees’ security awareness and skills.? Structure of Information Security Management of ENN Energy
Customer Service
Management and Control of Information Security RisksENN Energy, a member company of ENN-NG, hasincorporated information security risks into the Company'srisk identification and management processes. Weregularly supervise and inspect the management ofinformation security; conduct daily monitoring of majorinformation security risks; perform security vulnerabilityscans, offensive and defensive drills; and hold disasterpreparedness drills in core business systems. In order toprevent information security incidents and avoid financialand reputational losses, we formulated emergencyresponse plans for such incidents and the Board isresponsible for handling major security incidents. ENNEnergy regulates employees’data operations and monitorsand protects confidential corporate information throughsecurity protection software. For sensitive data involvinginformation security, we have established a strict entryand exit approval system to archive the entry and exitinformation of all operators. Furthermore, we improvecustomer privacy and information security protectionmechanisms with system privatisation deployment,hierarchical approval for system permissions, keyinformation encryption, and information confidentialityrequirements for signed contracts.
Adhering to customer-centricity, ENN-NG aims to meet the differentiated needs of customers and provides them withhigh-quality products and services. We attach great importance to the protection of customer rights and interests. Welisten to the voices of customers carefully, investigate their demands earnestly, and tailor service plans for them, forming acustomer-oriented business model and continuously improving customer satisfaction. We keep up with customer demandsthrough multiple channels. We conduct customer satisfaction surveys every year to understand their opinions on productquality, prices, and services. Based on the results, we analyse and summarise the shortcomings in our services and makeimprovements accordingly. Moreover, we strengthen the training of customer service staff to offer the most professionaland high-quality services.Handling of Customer Complaints
Customer Service Sta? Training
ENN Energy, a member company of ENN-NG that operates naturalgas distribution and retail, created theENN Energy Service SystemManualand theENN Energy Management Measures for ClientComplaintsto standardise the handling of related complaints. In2020, we utilised client feedback to optimise the current standardsand issued the“Notice on Regulating Customer Complaint Handlingand Feedback”to address complaints, while actively improving thequality supervision system. ENN Energy established a customerservice hotline (phone and online) and various other customerfeedback channels via public platforms. The public complaintchannels include 400-86-95158, the national number for servicequality supervision; 95158, a 24/7 service hotline; the supervisionand reporting number; online customer service; the number forcomplaints of the Company; and complaint boxes of its businessoffices. ENN Energy comprehensively supervises service delivery,customer evaluation, and customer feedback by means of regularbusiness follow-ups, monitoring of service performance indicators,customer complaint acceptance and handling, and annualcustomer satisfaction surveys. It also has set up complaint handlingcoordination, a closed-loop mechanism, and an upgraded handlingchannel for major complaints. In 2020, ENN Energy received a totalof 161 complaints and reports, 100% of which were resolved.
ENN-NG attaches great importance to the training andimprovement of employees’services. It helps the servicestaff improve service awareness and ability in training,learning, and exchanges, to bring more professional andhigh-quality services to customers. In 2020, ENN Energycommissioned a third-party professional consultingcompany for a customer satisfaction survey for allcustomers and all services through a combination oftelephone evaluation and online evaluation, with samplinginterviews with customers. The results showed that ENNEnergy’s customer satisfaction in 2020 was 94.1%, anincrease of 1.1% from 2019.
In 2020, 100% of our customer service staff signeda special privacy protection agreement. During theyear, ENN-NG received no complaints about personal databreaches or violation of customer privacy.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020Advancing Together with Stakeholders
Industry CooperationAdhering to the concept of open development, ENN-NG treats partners with sincerity,strengthens and promotes the establishment of harmonious and interactive partnership,and is committed to achieving win-win cooperation and common development. We activelyparticipate in industry exchanges and seminars and carry out industry-university-researchcooperation with universities and research institutes. We take part in a number of researchprojects and academic conferences to learn the latest technology research and developmentand industry innovation trends. We share our philosophy and practices and learn from others’
strong points and work for mutual benefit on international and domestic platforms. In this way,we expand industry cooperation and promote a win-win situation.Our key partners include:
On June 12, 2020, ENN-NG and Zhejiang Geely New Energy Commercial Vehicle Group formally signed acooperation agreement. The two parties announced a strategic partnership to jointly develop and promotenew clean energy technology and build a clean energy industry chain. ENN-NG will cooperate with GeelyCommercial Vehicle in the methanol fuel industry chain, LNG, hydrogen energy, and other clean energy areas,leveraging their respective advantages and joining forces. The two parties will intensify their cooperation, givefull play to the low-carbon and clean methanol fuel, and promote its application in power combustion. Thetwo parties will promote the industrial transformation of new energy commercial vehicles, support energysecurity, and actively respond to the call of the nation to win the Blue Sky Protection Campaign.
Aiming to better advance technological innovation, solve technological pain points, meet technological needs,build technological cooperation platforms, and improve technology and product development plans, ENN-NG and experts from ENN Group and Xindi Environmental Protection visited Peking University for technicaltransfer on September 3, 2020. They exchanged ideas with more than 10 experts and professors from PekingUniversity on the in-depth transfer demand for advanced coal chemical industry technology and industrialintelligence. After the meeting, the two parties reached a cooperation intention, including joint research anddevelopment and promotion of industrialisation, the use of digital technologies such as big data and artificialintelligence to build smart plants, and the completion of industrial Internet output.
ENN-NG and Zhejiang Geely Partnering Together to Build a Clean Energy Industry Chain
ENN-NG and Peking University Meeting for Technical Transfer
ENN-NG and Zhejiang Geely reaching strategic cooperation
ENN-NG and Peking University conducting communication and cooperation on technical transfer
China National Coal AssociationChina Coal National CouncilChina Coal Processing & Utilisation Association Semi-cokeBranchChina Communications and Transportation of AssociationChina National Association of Chemical ConstructionEnterprisesChina Petroleum & Chemical Engineering Survey and DesignAssociationChina Industrial Gases Industry Association TransportationEnergy BranchChina Industrial Gases Industry Association Liquefied NaturalGas Branch
Association (as member)
National Fuel Cell and Flow Battery Standardisation TechnicalCommitteeThe Society of Gas as a Marine Fuel (SGMF)Hebei Engineering Survey and Design Consulting AssociationHebei Province Municipal Engineering AssociationHebei Engineering Consulting AssociationHunan Gas Industry AssociationShenzhen Gas AssociationMunicipality and Utility Association of Langfang
PartnerThe 718th Research Institute of CSICBeijing Peking University Pioneer Technology Co., LtdBeijing Heron Engineering Technology Co., Ltd.Chaozhou Three-Circle (Group) Co.,Ltd.Tsinghua UniversityHarbin Institute of TechnologyHebei University of TechnologyUniversity of Science and Technology BeijingShanghai Research Institute of Chemical Industry Co., Ltd.
Technology Cooperation
Collaborative ProductApplication of hydrogen energyApplication of hydrogen energyApplication of hydrogen energyBatteryBatteryApplication of renewable energy in heating, etc.Integrated utilisation of biomass, etc.Low-carbon ironmaking process, etc.Clean energy
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020Advancing Together with Stakeholders
Public WelfareENN-NG actively participates in social welfare campaigns, keepssocial responsibility firmly in mind, works with all sectors to fight theCOVID-19 pandemic, and contributes to the sustainable developmentof society.
At the beginning of 2020, as the situation of the COVID-19 pandemic got worse, designated hospitals in manyregions saw a sharp increase in gas consumption and the need to build supporting facilities. Upon receivingthe urgent task, the fearless front-line employees of ENN-NG stepped up to start the design and constructionof emergency gas projects. They completed the tasks in a short period of time with high quality, and metthe urgent need for medical workers on the front line of the battle against the pandemic, contributing thestrength from ENN-NG to China’s battle against the pandemic.In addition, after the outbreak of the COVID-19 pandemic, the Company established the“ENN CoordinationGroup for Pandemic Prevention and Support for Hit Areas”to fully raise and transport medical supplies forthe front line of pandemic prevention and build a material transmission chain as fast as possible. On January29, 2020, the first batch of anti-pandemic supplies arrived in Wuhan and was delivery to three local hospitals.The Company donated special funds of RMB 10 million to the Hebei Anti-pandemic Medical Team to Hubeiand frontline medical workers in Hubei and other places. Its member companies actively donated fundsand supplies to their local area to support the local pandemic prevention. The total amount of funds andmaterials exceeded RMB 10 million.
For many years, ENN Energy has been committedto clean energy and is an advocate and practitionerof energy conservation and emissions reduction,contributing to the protection of the Earth.During the Earth Hour event, more than 30,000ENN employees invited 20.92 million residentialcustomers and 149,000 commercial and industrialcustomers to participate in the event by turningoff their lights for one hour and donating RMB1 toenvironmental protection.
ENN-NG Assisting the Battle Against COVID-19
ENN Energy Actively Responding to the Earth Hour Event to Callfor Joint Efforts Against Climate Challenges
More than
30,000
employeesparticipated in the program.
20.92
million residentialcustomers participated inthe program.
149,000
commercial and industrialcustomers participated in the program.
Poster of the Earth Hour Event
During the reporting period,ENN-NG donated a total of RMB
73.89
million to public welfareprograms.
The Company donated special fundsof RMB
million to the Hebei Anti-pandemic Medical Team to Hubei andfrontline medical workers in Hubei andother places.
Its member companies actively donatedfunds and supplies to their local areasin support of pandemic prevention;the total funds and materials donatedexceeded RMB
million.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020ENN Natural Gas Co., Ltd.
In the future, driven by the national goal of“carbon emission peak before 2030 and carbonneutral before 2060,” ENN-NG will rmly graspthe new opportunities of industrial market reformand digital technology development, keep ouroriginal aspiration, and face the challenges. Wewill insist on the innovation driving and focus ontransformation boosting. Relying on the industrialadvantages and operating experience of theentire scene and integration of natural gas, wewill accelerate the creation of new momentum forgreen and low-carbon development and build anew pattern of intelligent ecological development.We are committed to growing into an intelligentecological operator in the natural gas industry andsetting up a benchmark of green and low-carbontransformation in China’s energy sector.Adhering to safe development, we will increaseinvestment in safe production, subdivide theresponsibility for safe production goals, andpromote the construction of a high-standard safetysystem to ensure the Company’s healthy, safe,and sustainable development. We will stick to thepath of independent technological innovation,drive high-quality development of the Companywith innovation, continuously improve the coretechnical strength of the Company, and promotethe industrialization of technological innovation.We will actively explore the construction of anintelligent platform for the natural gas industry,build digital intelligent products based on ourindustrial experience, summarize the best industrypractice, and provide digital intelligent services
Outlook
for the intelligent transformation of the industry.We will pay more attention to the growth ofemployees and take care of their health. Guidedby the needs of strategic business development,we will bolster our talent team building andoccupational health care, continue to createa broad career development platform and aninclusive and stable workplace for employees,and help employees realize the unity of personaldreams and corporate vision. Furthermore, wewill continue to contemplate innovations infuture development, actively participate in publicwelfare undertakings with a grateful heart, andgive back to the society with all our strength. Wewill make contributions in creating jobs, servingpeople’s livelihood, supporting green development,advancing independent technological innovation,and promoting the sustainable and coordinateddevelopment of the society.Responsibility drives us move forward and missiongenerates energy for us. In the future, we willcontinue to practice and assume the responsibilityof corporate sustainable development. We willimprove the top-level design of ESG management,further integrate ESG into corporate developmentstrategies and regular operations, optimize ESGgovernance and performance, and fully unleashour comprehensive ESG value creation ability.We will strive to contribute to the innovativedevelopment of the energy industry and China’seconomic development and work with allstakeholders to make a clean, green, and beautifulfuture with practical actions.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020ENN Natural Gas Co., Ltd.
HKEX Environmental, Social andGovernance Reporting Guide Content Index
Subject AreaIndicatorsDisclosurePage
A1Emissions
General Disclosure Information on:
(a) the policies; and(b) compliance with relevant laws and regulations that have asignificant impact on the issuerrelating to air and greenhouse gas emissions, discharges intowater and land, and generation of hazardous and non-hazardouswaste.Note: Air emissions include NOx, SOx, and other pollutantsregulated under national laws and regulations.Greenhouse gases include carbon dioxide, methane, nitrousoxide, hydrofluorocarbons, perfluorocarbons and sulphurhexafluoride.Hazardous wastes are those defined by national regulations.
DisclosedP23、P28
A1.1 The types of emissions and respective emissions data.DisclosedP28、P29、P31A1.2 Greenhouse gas emissions in total (in tonnes) and, whereappropriate, intensity (e.g. per unit of production volume, perfacility).
DisclosedP23A1.3 Total hazardous waste produced (in tonnes) and, whereappropriate, intensity (e.g. per unit of production volume, perfacility).
DisclosedP31A1.4 Total non-hazardous waste produced (in tonnes) and, whereappropriate, intensity (e.g. per unit of production volume, perfacility).
DisclosedP31A1.5 Description of measures to mitigate emissions and resultsachieved.
DisclosedP28-30A1.6 Description of how hazardous and non-hazardous wastesare handled, reduction initiatives and results achieved.
DisclosedP31
A2Use ofResource
General DisclosurePolicies on the efficient use of resources, including energy, waterand other raw materials.Note: Resources may be used in production, in storage,transportation, in buildings, electronic equipment, etc.
DisclosedP25A2.1 Direct and/or indirect energy consumption by type (e.g.electricity, gas or oil) in total (kWh in’000s) and intensity (e.g. perunit of production volume, per facility).
DisclosedP27A2.2 Water consumption in total and intensity (e.g. per unit ofproduction volume, per facility).
DisclosedP29A2.3 Description of energy use efficiency initiatives and resultsachieved.
DisclosedP25-P28A2.4 Description of whether there is any issue in sourcing waterthat is fit for purpose, water efficiency initiatives and resultsachieved.
DisclosedP29-P30A2.5 Total packaging material used for finished products (intonnes) and, if applicable, with reference to per unit produced.
Not applicable
ENN Energy is committed to improving sustainable capacity, establishing robust ESG governancemechanisms, while striving to harmonise with the environment in order to create long-term andstable environmental, social and corporate values.The Board of Directors attaches great importance to ENN Energy's sustainable developmentperformance, and has established an ESG Committee to assist the Board in formulating theCompany's ESG-related strategies and supervising the implementation of ESG initiatives. AnESG working group has been set up under the ESG Committee to ensure that tasks related to allaspects of ESG are properly managed and implemented. We regularly hold internal and externalevents to communicate closely with stakeholders, identify and evaluate material ESG issues,and discuss and review the evaluation results on the ESG Committee. Based on the externalmacro environment and the Company's development strategy, the ESG Committee discussesand determines the Company's risks and opportunities in terms of environmental, social andcorporate governance, and pursues the management and improvement of key issues as anannual strategy for sustainable development. In 2020, with reference to the internationally leadingdisclosure framework related to climate change, we identified the risks and opportunities that theclimate change might pose to the Company’s business, assessed the relevance of risks, and setgreenhouse gas (GHG) emission reduction targets.In order to further implement its green development strategy in its own operations and theupstream and downstream of the value chain, the Company set mid to long term targets for theGHG emission intensity in its business segments of energy production and city gas:
For the energy production segment, the GHG emission intensity (Scope 1 and Scope 2 GHGemissions/sales revenue) will be reduced by 10% by 2025 and 20% by 2030 from the levelin 2020, with a commitment to achieve carbon neutrality before 2050. For the city gassegment, the GHG emission intensity (Scope 1 and Scope 2 GHG emissions/sales revenue)will be reduced by 10% by 2025 and 20% by 2030 from the level in 2019.For the targets ofcarbon emission reduction, we formulated an emission reduction action plan to monitor andreview the achievement of the targets. In addition, we will regularly track sustainable developmenttrends at home and abroad and continue to improve our ESG management.This report fully discloses the progress and effectiveness of ENN Energy's ESG work in 2020. It wasreviewed and approved by the ESG Committee and the Board on June 25, 2021.
Statement from the Board of Directors
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020ENN Natural Gas Co., Ltd.
Subject AreaIndicatorsDisclosurePageA3TheEnvironmentand NaturalResources
General DisclosurePolicies on minimising the significant impact on the environmentand natural resources.
DisclosedP31A3.1 Description of the significant impacts of activities on theenvironment and natural resources and the actions taken tomanage them.
DisclosedP31
B1Employment
General Disclosure Information on:
(a) the policies; and(b) compliance with relevant laws and regulations that have asignificant impact on the issuerrelating to compensation and dismissal, recruitment andpromotion, working hours, rest periods, equal opportunity,diversity, anti-discrimination, and other benefits and welfare.
DisclosedP53B1.1 Total workforce by gender, employment type, age group andgeographical region.
DisclosedP53B1.2 Employee turnover rate by gender, age group andgeographical region.
DisclosedP53
B2Health andSafety
General Disclosure Information on:
(a) the policies; and(b) compliance with relevant laws and regulations that have asignificant impact on the issuerrelating to providing a safe working environment and protectingemployees from occupational hazards.
DisclosedP37B2.1 Number and rate of work-related fatalities.DisclosedP37B2.2 Lost days due to work injury.DisclosedP37B2.3 Description of occupational health and safety measuresadopted, how they are implemented and monitored.
DisclosedP37-50
B3DevelopmentandTraining
General DisclosurePolicies on improving employees’knowledge and skills fordischarging duties at work. Description of training activities.Note: Training refers to vocational training. It may include internaland external courses paid by the employer.
DisclosedP55B3.1 The percentage of employees trained by genderand employee category (e.g. senior management, middlemanagement)
DisclosedP55B3.2 The average training hours completed per employee bygender and employee category.
DisclosedP55
B4LaborStandards
General Disclosure Information on:
(a) the policies; and(b) compliance with relevant laws and regulations that have asignificant impact on the issuerrelating to preventing child and forced labour.
DisclosedP53B4.1 Description of measures to review employment practices toavoid child and forced labor.
DisclosedP53B4.2 Description of steps taken to eliminate such practices whendiscovered.
DisclosedP53
Subject AreaIndicatorsDisclosurePage
B5Supply ChainManagement
General DisclosurePolicies on managing environmental and social risks of the supplychain.
DisclosedP65B5.1 Number of suppliers according to geographical region.DisclosedP65B5.2 Description of practices relating to engaging suppliers,number of suppliers where the practices are being implemented,how they are implemented and monitored.
DisclosedP66-68
B6ProductResponsibility
General Disclosure Information on:
(a) the policies; and(b) compliance with relevant laws and regulations that have asignificant impact on the issuerrelating to health and safety, advertising, labelling and privacymatters relating to products and services provided and methodsof redress.
DisclosedP68B6.1 Percentage of total products sold or shipped subject torecalls for safety and health reasons.
Not applicableP31B6.2 Number of products and service related complaints receivedand how they are dealt with.
DisclosedP72B6.3 Description of practices relating to observing and protectingintellectual property rights.
DisclosedP60B6.4 Description of quality assurance process and recallprocedures.
DisclosedP68B6.5 Description of consumer data protection and privacypolicies, howthey are implemented and monitored.
DisclosedP70
B7Anti-corruption
General Disclosure Information on:
(a) the policies; and(b) compliance with relevant laws and regulations that have asignificant impact on the issuer.relating to bribery, extortion, fraud and money laundering.
DisclosedP12B7.1 Numbers and results of adjudicated corruption lawsuitagainst issuers or their employees during the reporting period.
B7.2 Description of preventive measures and whistle-blowingprocedures, how they are implemented and monitored.
DisclosedP12B8CommunityInvestment
General DisclosurePolicies on community engagement to understand the needsof the communities where the issuer operates and to ensure itsactivities take into consideration the communities’ interests.
DisclosedP75B8.1 Focus areas of contribution (e.g. education, environmentalconcerns, labor needs, health, culture, sport).
DisclosedP75B8.2 Resources contributed (e.g. money or time) to the focus area.DisclosedP75
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020ENN Natural Gas Co., Ltd.
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Thank you for reading our 2020 Environmental, Social and Governance (ESG) Report. In order to enhance communicationwith you and other stakeholders and to continuously improve the ESG performance of our Company and the preparationof future reports, we sincerely hope to listen to your valuable comments and suggestions, and we sincerely look forward toyour feedback in the following ways:
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Address : Building B, ENN Science and Technology Park, No. 118 Huaxiang Road,Economic and Technological Development Zone, Langfang City, Hebei Province, ChinaTel:86-316-2595829 E-mail:enn-ng@enn.cn Website:www.enn-ng.com
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ENN Natural Gas Co., Ltd.