2023 was a year in which China Power forged ahead with its strategic transformation. Under the new stage and situation of global sustainable development, we seized the opportunity to take advantage of the momentum, and continued to strive hard and move forward. As a technologically innovative clean energy enterprise with international influence, we took it as our responsibility to lead the sustainable development of the global energy industry. We integrated ESG concepts into our corporate strategy and implemented them throughout various sectors and all processes of operation and management to continuously improve our ESG governance and risk management capabilities. We were firmly committed to the path of green development, setting an exemplary model for the low-carbon transformation of the energy industry. In addition, we gave back to the society at home and abroad with practical actions, demonstrating our responsibility and commitment as an industry leader.

Adhere to the green and innovation empowerment, and embark on high-quality development guided by our “dual-wheel drive” strategy

At present, actively responding to climate change and promoting green and low-carbon development have become a global consensus. In the face of the new situation of the energy revolution and the new demands of the “dual-carbon” era, we adhered to the “dual-wheel drive” of clean and low-carbon energy and strategic emerging industries, and continued to consolidate the advantages of our core clean energy business. We prompted the construction and commissioning of the large-scale new energy base projects, and optimized and adjusted existing coal-fired power assets comprehensively.

As at the end of 2023, the Group’s consolidated installed capacity of clean energy accounted for 75.39% of total consolidated installed capacity, representing an increase of 10.45 percentage points over the same period previous year, and exceeding the strategic goal of the Company for this stage. Revenue and profit from clean energy1 amounted to RMB22,443,180,000 and RMB4,099,541,000, respectively, accounting for 50.71% and 90.42% of total revenue and profit respectively. We actively participated in ecological environment management, successfully practiced and promoted the new mode and technology of “new energy + sand control”, and promoted the organic integration of new energy development and ecological protection and restoration. We continued to promote the refined management of carbon emissions, formulated the carbon peak action plan, comprehensively carried out green power and green certificate trading, and continued to enhance the value of clean and green power. In 2023, we completed the green power transactions of electricity amounting to 2,592,000MWh, and completed the trading of green certificates of 1,796,400.

Persisting in practicing the concept of innovation-driven sustainable development, we vigorously developed the strategic emerging industries, and accelerated the cultivation and value creation of strategic emerging industries such as novel energy storage, green power transportation, geothermal energy, photovoltaic colorization and decommissioned photovoltaic recycling, and integrated intelligent energy. Focusing on the three areas of “energy storage safety”, the deep integration of “Source-Grid-Load-Storage”, and “the in-depth decarbonization of high-carbon industries”, we vigorously promoted scientific and technological innovation and transformation of achievements. As at the end of 2023, a number of projects of the Company’s emerging energy industry companies received awards at home and abroad (please refer to the section headed “2023 ESG Milestones and Innovation Achievements” for details). During the year under review, the Group was granted a total of 198 research and development patents. Continuous breakthroughs in scientific and technological innovation have provided strong endogenous impetus for the Company’s high-quality development and green and low-carbon transformation.

Continuously reform and improve the governance structure to strengthen modern corporate governance

We are fully aware that good corporate governance is the cornerstone of high-quality corporate development. In this regard, we continued to improve our ESG governance structure by establishing the Strategic and Sustainable Development Committee under the Board during the year under review, which is responsible for monitoring and responding to climate change risks, and promoting the development of ESG governance and related mechanisms of the Group with a top-down approach. We actively explored scientific and efficient corporate development pathways. With an open attitude to benchmark the globally advanced corporate management experience, we continued to improve our corporate management model and modern corporate system. Meanwhile, we enhanced the level of standardized operations, improved the risk and internal control management system and generally practiced corporate governance in accordance with the law and regulations in every effort to promote integrity and compliant business operations.

We continued to further strengthen our strategic leadership, continuously motivated new vitality for corporate development in comprehensive reform and enhancement, and continued to create greater value for our shareholders and other stakeholders with advanced corporate governance capabilities and efficient operation and management.

In 2023, China Power’s ESG management work was highly recognized by various sectors of the society. It was selected successively as one of the “Top 100 ESG Pioneer Among Listed Companies in China” and the “100 ESG Pioneer of Central Enterprises”, and was awarded the “Responsible Top Bull Awards – ESG Dual Carbon Pioneer” ( 責任犇牛獎 • ESG 雙碳先鋒 ). The integration and development of ESG concepts with the Company’s governance and operation has achieved significant results.

Adhere to jointly-creating and sharing results to help unleashing social benefits

We have always adhered to the business philosophy of “mutual achievement, connection with society”, and maintained in-depth communications with all stakeholders to develop with them hand in hand, and to achieve mutual growth and common achievements. We took action to actively fulfill our social responsibilities and give our fruits of corporate development back to the society so as to create social value continuously.

Internally, adhering to our people-oriented aspiration, we have established the sound system of employee rights and interest protection and talent cultivation. We have improved the selection and appointment mechanism, support employees’ professional development, safe guard their occupational health and safety, and carry out employee care activities on a regular basis, so as to create a stable, safe and comfortable working environment. We attach great importance to the opinions and feedback of employees and listen to their voices. We regularly conduct employee satisfaction survey to timely identify and address their concerned issues, continuously improving their engagement and sense of belongings. In 2023, the Company conducted a number of employee satisfaction surveys and the employee’s satisfaction towards the Company remained at a relatively high level in general.

Externally, we actively explored “new energy + intelligent agriculture”, transportation and energy integration, construction and photovoltaic power integration and other development modes to promote the green development of local economies. Being empowered by technology to safeguard people’s livelihoods, and relying on technologies such as energy storage, color photovoltaic, and PEDF. We have also designed and constructed “Emergency Safe Shelters” with functions such as “uninterrupted power supply” during emergencies to ensure the basic living needs of people. In December 2023, after the earthquake occurred in Gansu Province, we actively fulfilled our social responsibility by setting up “Gansu Disaster Relief Action” team. We helped to construct five emergency safe shelters in the disaster-stricken areas, and fully activated “technological support” to the people in the disaster areas to help victims to settle down steadily until the post-disaster resettlement.

In addition, we have continued to enhance the level of international development, deepen international cooperation and exchanges, and help to improve the level of development of the host country’s environmental protection, health care, education and equity and other livelihood areas, making positive contributions to the economic and social development of the countries and regions where the Group’s projects are located. In July 2023, the first integrated intelligent energy project invested and constructed by Wu Ling Power in Bangladesh was officially connected to the power grid for power generation. The project provided more than 1,500 local jobs and laid the foundation for the sustainable development of Bangladesh’s energy industry while promoting local employment.

Looking ahead, we will advance forward our strategic development, and maintain our strategic focus on our vision and goal of “building a world’s leading technology innovation-driven green and low-carbon energy provider”. We will adhere to integrity and innovation, develop clean energy with high quality, and lead the development of emerging industries. We will improve the performance of ESG governance, practice the concept of sustainable development and actively fulfill our social responsibilities. We are marching together with our stakeholders for a win-win solution, and embarking on the green and low-carbon journey to co-build a prosperous future!

1 Clean energy includes hydropower, wind power, photovoltaic power, environmental power, natural gas power and energy storage businesses.