1. Environmental Management System

In order to reduce the impact of our own operation on the natural environment, we have established a comprehensive environmental management organization, forming a four-level management organization structure of “QHSE Planning Department of the Group – HSE Management Department of Major Regions – HSE Management Department of Local Companies – Companies and Departments”, and setting a 100% environmental performance target.

We strictly abide by the Environmental Protection Law of the People’s Republic of China, the Law of the People’s Republic of China on Conservation Energy, the Law of the People’s Republic of China on Prevention and Control of Water Pollution, the Law of the Peoples Republic of China on the Prevention and Control of Atmospheric Pollution, the Law of the People’s Republic of China on the Prevention and Control of Environmental Pollution by Solid Wastes, the Law of the People’s Republic of China on Prevention and Control of Soil Pollution, the Law of the People’s Republic of China on Prevention and Control of Ambient Noise Pollution and other relevant environmental protection laws and regulations and industry standards. In accordance with the above policy norms and standard requirements, combined with our own production and operation characteristics, we have formulated the Management Measures of Environmental Protection, which clarify the compliant disposal methods of noise, exhaust gas, liquid waste and waste, and elaborate the emergency measures to deal with environmental pollution incidents.

We actively identify the environmental impacts related to our own production and operations. The environmental pollution risk mainly comes from potential leaks and pollution during the experiment and sampling process. Therefore, we have detailed regulations to adopt a sample treatment process, strictly manage the discharge of experimental wastewater and waste, reduce the use of additives to cause environmental pollution, and avoid bringing them into the sampling site in large quantities, in order to reduce pollution while meeting the experimental requirements.

We attach importance to learning and absorbing advanced, scientific and practical management experience, and encourage various bases and subsidiary companies to carry out environment-related system certification. During the reporting period, we added 5 new subsidiary companies that have passed ISO 14001 environmental management system certification. By the end of the reporting period, 36 subsidiary companies have passed the ISO 14001 environmental management system certification.

2. Environmental Risk Management

In 2022, in terms of environmental management, we have revised the Management Measures of QHSE Risks and improve the environmental risk control mechanism. We continuously reduce environmental risks through risk identification, evaluation, and the development and implementation of control plans. We have established a collection channel for laws and regulations related to inspection and testing institutions and the requirements of interested parties, organized relevant staff across the country to regularly carry out information collection work, identify QHSE risk sources, establish a QHSE risk management database, and conduct annual review and update on it. For daily production and operation, in order to control, eliminate and reduce environmental risks, and continuously improve the environmental protection and management level of each company, we carry out HSE special compliance inspection for each branch and subsidiary to strengthen management and avoid adverse environmental impacts. For the construction projects, we give priority to the production process with low energy consumption and less pollution and more energy-efficient and environmental friendly equipment, in the design stage of the project, so as to reduce the adverse impact of the project on the environment from the source.

During the reporting period, in order to continuously improve the environmental protection management level of each company, the Group carried out the special rectification work of environmental protection. This rectification covered 25 cities and 58 subsidiaries.

3. Environmental Management Training

During the reporting period, we formulated the General Requirements for Group HSE Management to standardize related work to the Group HSE management, including the implementation of the HSE-related training and assessment system for HSE management personnel. In order to strengthen the environmental awareness of all staff, we provide HSE training and emergency response drills for employees including environmental management for employees (including temporary and part-time staff) and relevant parties in accordance with the Management Measures of HSE Training and Management Measures of Environmental Protection. The company shall organize HSE training for all employees of the group at least once a year. The training on environmental management includes but is not limited to environmental policy, environmental rules and regulations, environmental accident cases, to ensure that employees master the knowledge and skills of environmental management. In 2022, we provided employees with HSE training including environmental management through a combination of online and offline methods, with 7,020 participants and a total training duration of 15,332 hours.