Employment and Labour 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 the staff so as to create a corporate culture of loyalty and cohesiveness, promoting the mutual growth of the staff and the corporation.
Safeguarding Legitimate Rights and Interests
We always focus on safeguarding the vital interests of employees and protecting the legitimate rights granted to the workers by national laws and regulations. We adhere to fair employment, establish a reasonable and well-organized performance management system, smooth the channels for employees to raise their complaints and demands, emphasize the democratic management of employees, and strive to build a harmonic labour relation. Moreover, we have signed and released Special Collective Contract for Protecting the Rights and Interests of Female Workers in order to improve the extent and ability of female workers in participating the enterprise management. By 2019, we have a total of 10,444 employees. The employment contract signing rate and the social insurance coverage rate are both 100%. In addition, we have 200 newly enrolled college students.
Fair Employment System
We strictly abide by the Labour Law of the People's Republic of China, Labour Contract Law of the People's Republic of China and other laws and regulations, offer equal pay for equal work, and prohibit employment of minors and all forms of employment discrimination and forced labour. We open widely the gate to universities and society to attract social talents, while doing so, we always bear the recruitment rules in mind to ensure an open and transparent process.
During the year under review, all business units in which the Group has operational control, complied with the local labour laws. No fines or charges were imposed due to violation of laws.
Health and safety
The Group strictly complies with the "Laws of the People's Republic of China on the Prevention of Occupational Diseases (《中華人民共和國職業病防治法》)", the "Production Safety Law of the People's Republic of China (《中華人民共和國安全生產法》)" and other laws and regulations relating to safety and hygiene, and improves the working conditions for construction on a continuous basis. The Group also implements visualized, regionalized and digitalized management for its safety works. Safety signages are complete and clear. Dangerous and hazardous zones are encircled with fences with access restrictions. Employees are equipped with labour tools and labour protection gear that are compliant with safety standards and the proper use of these tools and gear are being supervised. The Group consistently maintains sound and reliable facilities for prevention against occupational disease at the production sites and discloses the passing results of regular inspection on occupational hazardous factors. Staff health checks are organized regularly to protect the lives and properties of the employees. In 2019, there was no work-related death or working days lost due to work-related injury for the Group's employees.
Raising employees' awareness of work safety would help mitigate the risk of accidents and hence effectively protect the lives and properties of the employees. Providing production safety training for staff remains the Group's first priority. In addition to the safety training for staff at various levels, the Group also provides special trainings such as management of hazardous chemicals and fire safety management. In 2019, the Group organized 745 trainings in respect of safety education with 34,482 participants in total, which reinforced the staff's understanding and knowledge of the laws and regulations, procedures and systems as well as the protocols and standards for production safety, and clarified their rights and responsibilities in respect of production safety.
Development and training
Focusing on Career Development
We pay attention to the all-round development of employees and keep on exploring and optimizing the employee training modes in order to provide more channels for improving their competences. Moreover, we focus on building a favorable work atmosphere such that our employees have a better development environment in their career growth.
Diversified Training Modes
In order to improve the training effects, we develop annual training plans for managers, professional technicians and skilled personnel by fields and levels. In addition, we input more training resources, build a talent training platform, and organize the writing of training materials and exam database with China Power characteristics to improve the skills of employees. In 2019, the Group's capital input in employee training was up to RMB42,196,300.
Favorable Development Environment
We devote to provide smooth career development channels for our employees and thus we never stop to optimize the organizational structure and personnel management so as to provide a larger space for their growth and development. Besides, we accelerate the training of young officials and backbone talents, release the Implementation Plan for Enhancing the Training of Outstanding Young Officials, set the objectives of young officials training and enforce the measures based on the actual situation, and accomplish the creation of database for key trained young officials and business backbones.
Caring for Life of Employees
We strive to build a harmonic work environment for employees, carry out caring activities to understand their actual demands, and offer caring ways that consistent with their expectations. Also, we organize a variety of recreational and sports activities to enrich employees' spiritual and cultural life, improve their cohesion and centripetal force as well as the sense of belonging, and strengthen their recognition to the Group's value and culture.
All-round Caring for Employees
We pay attention to the physical and mental development of our staff and take account of the actual demands of special groups so that the Group's caring activities can genuinely warm the heart of every employee. In 2019, the Group organized 285 caring activities, helped 474 employees in difficulties or suffering from serious diseases, and granted special disease relief fund of RMB407,000.
Operational Practices - Securing a 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.
Supply chain management
The Group persists in developing fair and impartial working relationships with suppliers. Bulk purchases of fuels and other materials are subject to a management regime that separates the three functions of purchase, acceptance inspection 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 treated with respect and equality.
The Group's major suppliers are coal production and sales enterprises, while its coal-fired power plants purchase the majority of coal from neighboring coal production enterprises primarily under long-term contracts. The Group has been maintaining long-term and good relationships with major suppliers in order to ensure efficient coal procurement. During the year under review, the aggregate purchases from the Group's five largest suppliers (for production materials like coal and consumables) accounted for approximately 57.90% of the Group's total purchases. The Group will continue to explore different procurement channels to ensure the stability of coal supply.
While fulfilling its own social responsibilities, the Group also incorporates concepts and requirements of social responsibilities in the management of suppliers. 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》)", "Regulations for the Management of Material Suppliers (《物資供應商管理制度》)", "Implementation Measures for the Evaluation of Tender Suppliers (《招標供應商評價實施細則》)", "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.
Approval of fuel suppliers is subject to the fulfilment of precedent conditions for cooperation between the relevant parties, which is, in principle, based on the mineral or logistics resources possessed. Suppliers are assessed and examined in a comprehensive manner with reference to their qualifications, skill competences, product qualities, pricing, after-sale services and reputation, and are graded as I, II and III accordingly in accordance with the "Catalogue for Grading and Classification of Materials (《物資等級分類目錄》)". The Group focuses on examining suppliers of Grade I and II and those which are newly added and planned to be eliminated. The Group also incorporates concepts and requirements of social responsibilities in its supplier management, and clearly stipulates that materials must meet the relevant national environmental protection laws and standards while signing purchase contracts, in order to prevent pollutants from exceeding the emission standards at source. Moreover, it verifies suppliers' qualifications on, among others, safety work and staff training, in order to raise suppliers' awareness of social responsibility management. In 2019, the Group assessed a total of 4,386 (2018: 2,212) suppliers of fuels and other materials, and identified 142 unsatisfactory suppliers, 66 of which were blacklisted.
Fuel and equipment suppliers of the Group in 2019 analyzed by region are as follows:
In terms of electricity production and sales, the Group's major customers are regional and provincial power grid companies, through which it sells the electricity generated by its power plants to power users and settles the transactions. The Group has been maintaining long-term and good customer relationships with the power grid companies in various locations where its power plants are located. During the year under review, the aggregate turnover attributable to the Group's five largest customers (regional power grid companies) accounted for 73.25% of the Group's total turnover.
In 2019, seizing the opportunity directed by the PRC government in opening up the electricity market, the Group has been actively expanding its own customer base by proactively liaising with enterprises of large electricity consumption and building with them long lasting and sustainable partnerships by developing and providing value-added services in order to secure the increased market share in direct power supply.
We regard customers and suppliers as very important stakeholders, and have been maintaining good communication and establishing a good long-term and stable cooperative relationship with them. In 2019, the Group had no significant disputes with customers and suppliers.
Safe and reliable power supply
The Group is dedicated to the building of a stable and reliable power generation system to ensure safer, cleaner, more economical and sustainable power supply.
The Group regards safe production as the pre-requisite for maintaining stable power supply and ensuring the sustainable development of the Group and hence firmly adheres to the safety philosophy that "no risks are uncontrollable, no breaches are unpreventable and no accidents are unavoidable" and the safe production directives of "safety as priority, prevention rather than cure, and comprehensive management". No major safety incident related to our employees, facilities or environmental protection occurred in 2019.
Improving Safety System
We improve the safety system, and implement a work safety accountability system to strengthen identification of hidden hazards and strictly investigate safety responsibilities, to ensure continuous and stable work safety and lay a good foundation for work safety.
Creating a safety culture
We actively promote the construction of a safety culture. By means of participating in SPIC safety trainings and organizing subordinates to conduct safety-related training, we provide safety education and trainings for all employees, improve the safety awareness and skills of all employees, thereby forming a good atmosphere of "everyone talks about safety, everyone understands safety, and everyone ensures safety". In 2019, 0 working days lost due to work-related injuries and 0 death toll from work was reported, 745 annual safety education and trainings were provided for 34,482 personnel.
Strengthening safety training
Participated in safety trainings, the third round of "HSE Director Training Courses", and pre-examination training and continuing education training for registered safety engineers held by SPIC, and improved the work safety management capabilities of the "key few people".
Organized subordinates to carry out safety-related trainings, organized trainings on "Prevention of errors due to human errors" for shift leaders for four times, "Safety training courses for leaders" and "2019 safety management training courses", and carried out "Open work safety courses", "Management of lifting machinery and lifting safety" and other special trainings in the form of video trainings.
Revamped training methods, increased investment in safety education and trainings, and improved safety training information platform and facilities for experiential training, trainings on prevention of errors due to human errors, practical training, etc.
Creating a safety climate
Publicized the philosophy and policies of intrinsic safety via various media and channels.
Held various safety promotion activities such as safety-related photography contest, and safety-themed comic exhibition.
Carried out safety competition activities for "Zero fatality from work, and firstclass safety team".
Ensuring reliable operation of production facilities
Improving facility management: series of facility management regulations such as "Regulations for the Management of Special Equipment (《特種設備管理制度》)", "Regulations for the Management of Repair and Maintenance Preparations for Class A Generating Units (《機組A級檢修準備工作管理制度》)" and "Regulations for the Management of Repair and Maintenance (《檢修工作管理制度》)" have been formulated.
Enhancing facility repair and maintenance: repair and maintenance of Class A/B/C generating units has been conducted, hidden hazard investigation and removal as well as rectification of irregularities, in particular the closed-loop rectification efforts for substantial hazards, have been reinforced to enhance reliability of the production facilities.
Enhancing Emergency Management
We enhance the emergency management capability, constantly improve the emergency response system, organize subordinates to upgrade and improve the emergency response system, and prepare and release comprehensive and special emergency plans. In 2019, we released 2,279 emergency plans, including 73 comprehensive emergency plans, 790 special emergency plans, and 1,416 on-site handling plans, and organized 1,510 emergency drills involving 16,416 participants.
The Group implements a stringent operation management regime and duly complies with the requirements for safe production. Emergency response capabilities have been continuously enhanced with a view to providing stable and reliable power supply. In 2019, the Group recorded a combined power generation of 87,134,871MWh (2018: 74,101,429MWh), providing assurance for stable energy supply for regional economic development.
To ensure stable power supply, the Group has formulated specific regulations for production and operation and set out plans for overhauls and technological upgrades, and adopted specific investigation to eliminate any hidden hazards in the power generating units and increase the utilization ratio of power generating units. In 2019, the Group conducted a total of 54 overhauls on Class A/B/C generating units to secure the stable operation of the generating units and successfully dealt with the challenges in the drought periods and the peak power consumption periods during summer/winter.
During the year under review, all operating power plants in which the Group has operational control complied with the relevant production safety regulations in the PRC. No fines or charges were imposed due to violation of regulations.
Promoting Innovative Development
Innovation is the drive of enterprise development. We insist in innovation-driven development, increase investment in technology, and strengthen information construction and management innovation, to create an atmosphere for technology innovation and inject vitality for development of the enterprise. In 2019, our investment in technology totaled RMB309,880,000.
Strengthening Technology Innovation
In order to meet the needs of future development, we strengthen technology innovation, explore cutting-edge technologies, carry out technical exchanges, and encourage all-involvement innovation, to improve work efficiency.
To improve the awareness of honesty and self-discipline and enhance the construction of a culture of integrity, we strengthen supervision and implementation of disciplines and accountability system, improve the anti-corruption supervision system, strictly investigate anti-corruption violations, provide vivid teaching materials for all position levels of the Croup, and increase the participation of Board members in integrity education, so as to create a clean and upright atmosphere for development of the Croup. In 2019, the Croup carried out 219 educational trainings on anti-corruption and honesty for 12,055 personnel.
Community Investment — Promoting Harmonious Development
The Group is actively involved 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 fulfils its social responsibilities and contributes to the sustainable development of the communities, the Group by leveraging on its own advantages, actively encourages its employees to participate in volunteering services, supports rescue and relief efforts, 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.
Supporting Local Development
We take initiatives to adapt to the new normal of economic development, meet the needs of local economic development, strengthen communication and coordination with local governments, and explore long-term cooperation mechanisms. In the whole process of preparation, construction and operation of the project, we strive to promote local economic development and benefit local people through our own development. In 2019, the Company paid various taxes of RMB2,376,759,391 and created 361 new jobs in the region where it operates.
Promote local economic development
Carry out targeted poverty alleviation for the local.
Promote the growth of local tertiary industry and other consumer markets, and drive the development of related downstream industries.
Enhance local employment
Support for Education, Cultural Activities and Charity
We enthusiastically participate in public welfare undertakings, actively organize various voluntary service activities and environmental protection activities, continually carry out the "Yingshanhong • China Power Marching toward Brightness" voluntary activity, and provide employment and educational assistance for university students to spread the volunteerism of "dedication, friendship, mutual aid and progress". In 2019, the Company organized voluntary donations totaling RMB146,718, and completed 35,537 hours of 186 voluntary service activities by 2,795 registered volunteers.
Capitalized terms used in this report shall have the same meanings as defined in the section headed "Technical Glossary and Definitions" of the 2019 Annual Report of the Company unless the context requires otherwise.