The Company is committed to sustainable operation and growth. In the course of the Group's own business development, it attaches great importance to its impacts on the society and the environment. Undertaking the mission of "Lower Carbon Empower Better Life", it strives to achieve its corporate vision of becoming a "World-class Green and Low-carbon Energy Provider".
In 2022, we continued to incorporate our core philosophy of "Green-empowerment, Intelligent Innovation, Mutual Achievement" for sustainable development into all our businesses. Our efforts in sustainable development can be categorized into three major aspects, namely environment and climate, energy ecosystem and connection with society.
"Three in one" Business Positioning: An enterprise that integrates the role of "clean and low carbon energy producer, green energy technology service provider and dual-carbon ecosystem integrator".
"Double-leading Enterprise" Growth Positioning: Progressing from a leading enterprise in China towards a leading enterprise in the world.
The following is the short-term and medium-term goals of the sustainable development of the Group.
End of the Year | Installed Capacity (Clean energy) | Revenue (Clean energy) |
Revenue (Integrated intelligent energy) |
No. of confirmed sizable customers and confirmed cities, counties and districts for strategic cooperation |
2023 | Over 70% | Over 50% | Over 15% | Over 100 |
2025 | Over 90% | Over 70% | Over 25% | Over 200 |
2030 | Over 95% | Over 50% | Over 1,000 |
As of 31 December 2022, the Group's clean energy accounted for approximately 64.94% of the total consolidated installed capacity.
The Board strongly believes in the crucial role of effective sustainability governance in the future sustainable development of the Group. We have established a robust environment, social and governance ("ESG") risk management system to boost performance and drive the effective management of sustainability issues. During the year under review, the Board, the Risk Management Committee and the Sustainability Working Committee were fully responsible for overseeing the sustainable development of the Group.
Given the increasing focus of the world on ESG issues, the Board is well aware that incorporating ESG into business strategies is a core part of good governance and effective risk management. In late March 2023, the Board approved the formation of the new Strategic and Sustainable Development Committee which operates independently from the existing Risk Management Committee. The newly formed committee will be specialized in supervising the overall ESG development of the Group and reporting relevant issues to the Board for more regular discussion. At the same time, the Sustainability Working Committee has been reassigned as a sub-committee under the Strategic and Sustainable Development Committee. For details, please refer to the announcement of the Company dated 12 April 2023.
The Board endeavors to promote the ESG issues of the Group and attaches high importance to its sustainability management. For this purpose, it has set up a three-tier governance structure. Employing a "top-down" management approach, it identifies, assesses, manages and supervises ESG issues on an ongoing basis to ensure that the Group (i) incorporates ESG issues into its overall strategic planning; and (ii) follows our own principles to comprehensively improve the Group's ESG management standards so as to achieve the sustainability mission of the Group. With the assistance of the Risk Management Committee and the Sustainability Working Committee, the Board directs and oversees sustainability strategy and risk management in a holistic manner. It also acknowledges the following functions and responsibilities as the leader of ESG initiatives:
The Board formulates and reviews key targets and/or plans that cover all aspects of ESG annually, including but not limited to the followings:
In 2022, the Group implemented the following sustainability initiatives in three major directions, namely environment and climate, energy ecosystem and connection with society:
1. Climate Change
The Group recognizes the real and present danger of climate change and assumes the mission of accelerating the transformation of the power and energy industry and the development of clean energy. The Board is well aware of the importance of understanding climate risks and their impacts on the long-term strategic development of the Group.
1.1 Strategies and Actions
The Group's strategies in coping with climate change have been incorporated into the Group's directions for development and overall business layout as set out in the section headed "Strategic Positioning and Goals" above.
The actions carried out by the Group for various tasks are based on:
(a) | Policy guidance: the national goal of "30 • 60 Carbon Emissions Peak and Carbon Neutrality", among other policies, promulgated by the central government of the PRC. |
(b) | Regulatory standards: "Environmental Protection Law of the People's Republic of China (《中華人民共和國環境保護法》)", "Air Pollution Prevention and Control Law of the People's Republic of China (《中華人民共和國大氣污染防治法》)", "Emission Standard of Air Pollutants for Coal-fired Power Plants (《火電廠大氣污染物排放標準》)", "Ambient Air Quality Standards (《環境空氣質量標準》)", "Interim Measures for the Administration of Voluntary Greenhouse Gas Emission Reduction Trading (《溫室氣體自願減排交易管理暫行辦法》)", and other regulatory standards on environmental protection issued by the central and local governments. |
(c) | Working guidelines: "Action Plan for Enhancing the Protection of Ecological Environment (《生態環境保護提升行動方案》)" and working guidelines regarding the protection of ecological environment issued by various business units. |
1.2 Climate Governance Framework
It has become a global consensus to actively address climate change. Against the current backdrop, we further understand the overall requirements of the "Dual Carbon Goals" and integrate climate issues into our overall corporate strategy. With reference to the draft of two disclosure standards, namely the "Sustainability Disclosure Standards of IFRS 1 — General Requirements for Disclosure of Sustainability-Related Financial Information" and "Sustainability Disclosure Standards of IFRS 2 — Climate-Related Disclosures" on which the International Sustainability Standards Board (ISSB) sought comments in March 2022, we have further improved our environmental and climate governance system based on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) in an effort to address climate change.
China Power has adopted the "Climate-Related Risks, Opportunities, and Financial Impacts" framework proposed by the TCFD. During the year, through qualitative means such as data analysis, management interviews and internal discussion, as well as quantitative means such as risk scoring, we assessed the financial impacts of various risks. Then, relevant risks were prioritized based on their possibility, impact, adaptability, resilience and other criteria, so that the Company could prepare the list of risks and determine the responsive measures accordingly.
1.3 Identification and Analysis
The assumption of climate change can have various impacts on the business of China Power, which include volatility in power generation, increased difficulty in production safety and elevated asset and financial management risks therefrom. The specific impacts are set out below:
Source: The "Climate-Related Risks, Opportunities and Financial Impacts" framework proposed by the TCFD
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2. Promoting Green Power Generation
We have improved the resources consumption management of thermal power generating units, promoted the transformation and upgrading of generating units, continued to change the development mode of thermal power, and developed clean thermal power. We strengthened the management of environmentally friendly power generation to ensure the stable operation of environmentally friendly power generation. In 2022, the operational ratio of desulphurization and denitration facilities of the Group remained at 100%, the investment in environmental protection technological upgrade amounted to RMB64.21 million.
In 2022, the Group's clean energy power generation amounted to 40,999,427MWh, representing a reduction in carbon dioxide emission of 26,102,786 tonnes.
3. Participation in Market-Oriented Trading
Against the backdrop of the changing power policies and market, we intensively participated in green power market transactions. Under the increasingly stringent policy requirements on management and control over carbon emissions and related transactions, we complied with the requirements of a series of policies such as "Administrative Measures for Carbon Emission Rights Trading (Trial) (《碳排放權交易管理辦法(試行)》)". We have properly studied, researched, analyzed and planned the business layout of carbon market trading to enhance the ability to respond to the power market, thereby proactively integrating into the green power trading landscape.
In 2022, China Power participated in market-oriented trading:
4. Adhering to Green Production
4.1 Carbon Emission Management
Emission Types and Categories |
Scope | Unit | 2021 | 2022 | Changes |
Total CO2 emission | Scope 1 | '000 tonnes | 53,691 | 61,731 | 14.97% |
Scope 2 | '000 tonnes | 25 | 169 | 576.00% | |
CO2 emission density | Scope 1 | g/kWh | 800.61 | 546.57 | –31.73% |
Scope 2 | g/kWh | 0.38 | 1.49 | 292.11% |
4.2 Energy Saving and Emission Reduction
Emission Types | Categories | Unit | 2021 | 2022 | Changes |
NOx emission | Total | '000 tonnes | 9.230 | 9.236 | 0.07% |
Density | g/kWh | 0.139 | 0.131 | –5.76% | |
SO2 emission | Total | '000 tonnes | 5.065 | 4.954 | –2.19% |
Density | g/kWh | 0.076 | 0.070 | –7.89% | |
Flue gas and dust emission |
Total | '000 tonnes | 0.535 | 0.595 | 11.21% |
Density | g/kWh | 0.008 | 0.008 | – |
Dabieshan Power Plant won the title of "Water Conservation Enterprise in Macheng City" in 2022. In the recent two years, Dabieshan Power Plant has invested nearly RMB6 million in the upgrading of coal-containing wastewater system, oily wastewater system, reverse osmosis concentrated water utilization and other projects, reducing the amount of water replenishment by 400,000 m3 per year. At the same time, taking the development of a water conservation society as the starting point, it reused 800,000 m3 of domestic sewage, approximately 2,400,000 m3 of backwater from ash yards, and 100,000 m3 of coal-containing wastewater, with a reusing rate of 100%. It realized no discharge of wastewater, and established an efficient, clean, low-carbon, circular and green management system, improving the efficiency and water conservation level of water for industrial use.
5. Protecting the Natural Environment
We always attach importance to the protection and construction of the ecological environment, constantly standardize the management of the ecological environment, strive to improve the capability and level of ecological protection management, strengthen the protection of biodiversity and natural habitats, and promote the development of a resource-conserving and environmentally friendly society.
Amid the major shift to clean, diverse, digital and intelligent energy, China Power made the timely move to push forward the systematic reform for strategic transformation. In 2022, we increased investment in research and development and supported talent nurturing, which led to fruitful results. In terms of strategic development, China Power continued to explore and tap into new market segments, strived to develop emerging industries and made constant progress in the energy sector. We fully combined digitalization technology and green energy development through innovation and breakthrough, so as to build an intelligent energy ecosystem and evolve into a world-class energy enterprise.
The Qingshuijiang Integrated Hydropower, Wind and Photovoltaic Multi-Energy Complementary Energy Base is located in Southeast Qian Prefecture, Guizhou Province, China. It has a planned new energy capacity of 800 MW, including 350 MW of photovoltaic power and 450 MW of wind power. The project extends across Hunan and Guizhou provinces and connects to both State Grid and China Southern Power Grid. It is also the first 500kV grid-connected and direct dispatch new energy project of the dispatch network of Central China Grid. Upon completion, the project can increase the utilization rate of the existing power transmission system, give full play to the multi-year natural regulating function of Sanbanxi Reservoir, and achieve the integration of hydropower, wind and photovoltaic multi-energy complementary power generation.
The green power transportation segment of China Power jointly designed and developed China's first 3,000-tonne pure-electric inland river container vessel "Ganghang Chuantu 01" with Anhui Provincial Port and Shipping Group Co., Ltd., Anhui Chuantu Digital Technology Co., Ltd., Shanghai Jiao Tong University, Wuhan University of Technology and other well-known universities and enterprises. This pure-electric container vessel has significant eco-environmental and economic benefits. With zero emissions and pollution during voyage, the vessel can save energy costs by approximately 35% compared with traditional oil-fueled ships for the same voyage, while greatly shortening the voyage time and increasing the overall transport efficiency by approximately 15%.
The Group adheres to the quality, safety, healthy and environmental management principle of "Quality Products and Services, People-oriented, Risk Prevention and Control, Green Operations", pursuing high standards of operations and striving to minimize the adverse impact on the society and the environment. We have raised the proportion of clean production on a continuous basis so as to provide safe, economical and clean products and services to the society and customers. The Group has also strengthened communication and cooperation with various stakeholders with a view to fostering a win-win society.
1. Employment and Labor Practices — A People-Oriented Approach
Our employees are the driving force behind our sustainable development. We have always been committed to the provision of a sound workplace for employees and the protection of employees' lawful rights. Health and safety of the employees are our concern and a wide-ranging platform has been in place for career development of staff so as to create a corporate culture of loyalty and cohesiveness, promoting the mutual growth of staff and the corporation.
1.1 Supporting Employees' Development
We are committed to talent nurturing as evidenced by the formulation of our "Management Measures for Employees' Career Development". We adopted different measures to establish a talent pool, multiple approaches to enhance talent training and diverse levels of career paths for talent development, so as to optimize the holistic staff management mechanism for both employee development and sustainable corporate growth.
2022
1.2 Caring for Employees' Livelihood
We followed our "Management Measures for Employee Caring Activities" and organized a wide range of staff activities on a daily basis. During the pandemic, we maintained effective disease control and extended our concern to employees, thereby showing our care for them through concrete actions.
2022
2. Operational Practices — Safeguarding Stable Development
The Group works diligently to provide safe and reliable power supply for economic and social development and persists in value-sharing with the industry chain, seeking to drive economic development at the places where it operates and share with the community the results of its development. Taking into account the features of the power industry and its own characteristics, the Group incorporates the philosophy of social responsibilities in its management and operation and makes contribution to the sustainable development of the society and the environment, in a bid to constantly enhance its commitment to social responsibilities.
2.1 Supply Chain Management
The Group persists in developing fair and impartial working relationship with suppliers. Bulk purchases of fuel and other materials are subject to a management regime that separates the three functions of purchase, delivery inspection and acceptance, and supervision with a view to eliminating corruption at source. The Group strives to establish fair, just and stable mid-to-long-term cooperation with its suppliers. Contracts and agreements are performed in stringent compliance with contractual requirements and each supplier is equally treated with respect.
The Group has formulated a stringent and standardized system for the selection and management of suppliers. It has also established a supplier review team, which will conduct strict reviews according to the integrity, quality assurance, punctuality of supply and price reasonableness, etc., to select more competent and reputable suppliers so as to jointly maintain a healthy and orderly marketplace in accordance with the "Implementation Measures for the Management and Evaluation of Fuel Suppliers (《燃料供應商管理與評價實施細則》)", "Management System for Material Suppliers (《物資供應商管理制度》)", "Administrative Measures for Recording the Misconduct of Suppliers (《供應商不良行為記錄管理辦法》)" and other pertinent regulations.
While fulfilling its own social responsibility, the Group also incorporates concepts and requirements of social responsibilities into the management of suppliers, and clearly stipulates that materials must meet the relevant national environmental protection laws and standards when signing purchase contracts, so as to prevent pollutants from exceeding the emission standards at source. The Group also verifies suppliers' qualifications on, among others, safety work and staff training, in an effort to raise suppliers' awareness of social responsibility management. In 2022, the Group assessed a total of 13,701 suppliers of fuels and other materials, and identified 305 unsatisfactory suppliers, 210 of which were blacklisted.
2022
* The same supplier being audited more than once during the year was counted multiple times
2.2 Production Safety
We always adhere to the safety philosophy that "no risks are uncontrollable, no breaches are unpreventable and no accidents are unavoidable". Based on the "3-year Action Plan for Targeted Safe Production Rectification", we formulated the "2022 Safety, Health and Environment System Enhancement Plan". Focusing on strengthening the foundation and controlling the source, we undertook our responsibilities and implemented relevant systems complemented by innovative and technology-driven safety measures, which ensure safe production and development. During 2022, the Group did not have any major safety incidents in respect of employees, equipment and environmental protection.
No. of work-related fatalities occurred in each of the past three years | 2020 | 2021 | 2022 |
No. of people | 0 | 0 | 0 |
Proportion | 0 | 0 | 0 |
We continued to foster the foundation of safety management and set up the safety, health and environment management system. The safety management mechanism was continuously optimized, and specific production safety activities were rolled out. We imposed stringent due diligence to monitor production safety while preventing and mitigating material safety risks at the source. In order to strengthen safety management in all aspects, we stepped up safety education and promotion to establish the fundamental awareness of production safety among our employees and enhance safety in production.
2022
In 2022, no work days were lost due to work-related injuries.
2.3 Anti-corruption
The Group has established the "Whistleblowing Policy" in April 2012, which is applicable to employees and those who have dealings with the Group (e.g. customers and suppliers) for raising concerns in a secure and confidential manner. The concepts of "dual responsibilities" and "two-way investigation" are stringently implemented so that whenever significant disciplinary and legal violations occur at a department or unit, both the culprit and the relevant supervisor should be held responsible. During the reporting period, we have continuously improved anti-corruption and whistleblowing policies which are inducive to significantly reduce the cost of supervision, opened up channels for public supervision, and reduced corporate management risks. We have been in strict compliance with the law and regulations regarding corruption and bribery prevention, including the Company Law of the PRC, the Anti-money Laundering Law of the PRC and the Anti-unfair Competition Law of the PRC, continuously improved the internal integrity supervision system, and enhanced the focus and effectiveness of anti-corruption work to create an honest and regulated corporate atmosphere.
2022
3. Community Investment — Promoting Harmony and Development
The Group actively engages in community building and conducts its business in a responsible manner in the places where it operates, with the aim of driving local economic and social development. In order to effectively fulfil its social responsibilities and contribute to the sustainable development of the communities, the Group, by leveraging its own advantages, actively encourages its employees to participate in volunteering services, supports rescue and relief efforts, donates anti-epidemic supplies, organizes social charity events, science and technology education and other campaigns that contribute to the well-being of local communities based on their practical needs.
3.1 Volunteering Services
Pursuing the volunteering spirits of "dedication, love, mutual help and progress", we formulated regulatory systems such as the "Management Measures for External Donation" and "Management Measures for ‘Yingshanhong' Youth Volunteer Service Activities" to give back to society and address the needs and problems of the general public. We aim to promote volunteering as the new trend in society and build a more civilized world.
2022
3.2 Rural Revitalization
We accelerated the planning process to establish the clean energy application system in rural regions based on renewable energy. By developing a new engine for rural revitalization, we strived to create a diverse society with a value of "beautiful villages, rich farmers, sound governance and robust industries".
On 26 June 2022, the CP Guorui Hebei Jinan Power Grid Household Photovoltaic Project was connected to the power grid for power generation for the first time. It is the first pure-household distributed photovoltaic project of China Power. The project covers 42 counties in 6 cities located in southern Hebei Province in China, including Shijiazhuang. By leasing out on-grid photovoltaic panels for power generation on the rooftop of local houses, over 20,000 farmers were able to earn extra income. The project has been launched in phases on a rolling basis and is expected to have an annual average on-grid power generation capacity of 618,850MWh when it reaches full capacity. Compared to coal-fired power plants with the same generation capacity, it can save approximately 185,655 tonnes of standard coal and reduce carbon dioxide emissions by 501,268.50 tonnes per year.
The full version of the Company's 2022 Sustainability Report has been published on the websites of the Company and the Hong Kong Stock Exchange. For details about the Group's sustainable development, please refer to the full version of the report.
Address | Suite 6301, 63/F, Central Plaza, 18 Harbour Road, Wanchai, Hong Kong |
Phone | (852) 2802-3861 |
Fax | (852) 2802-3922 |
ir@chinapower.hk |