Insisting on the core value of "giving light and power to the world, leaving clear water and blue skies to our children", the Group, by virtue of its consistent inputs for energy conservation and emission reduction, advocating the development of clean energy and actively promoting sustainable development in social, economic and environmental terms, is committed to the targets of becoming a resource-saving and environment-friendly enterprise with high proportion in clean energy, low consumption of energy and resources, and low discharge of pollutants.
1 Climate Change - coping strategies and actions
The PRC government places consistently strong emphasis on environmental protection and continuously improves its legislation on renewable energy. A number of environmental policies were promulgated with a view to enable economically sustainable development. With China officially becoming a party to the Paris Agreement in 2016 indicating a serious commitment to tackle climate change, the PRC government issued in the same year the "13th Five-year" plans for energy and power development, in which the targets for clean energy developments were specified up to 2020. In general, Chinese companies are confronting new requirements for environmental and social responsibilities. The Group acknowledges that it is incumbent upon, and obligatory for, energy and power companies such as the Group to actively cope with global climate change, and corresponding strategies are formulated while relevant actions are engaged.
Aims and Directions for Development
The Group is committed to establishing itself as a clean low-carbon integrated energy company. In order to contribute to the coping responses to global climate change, the Group’s directions for development for achieving existing goals are as follows:
||Enhance the development of clean energy: continue to increase the proportion of clean energy by maintaining our lead in hydropower generation and making further progress in the development of premium wind power and photovoltaic projects, while controlling and slowing down new coal-fired power generation.
||Reduce pollution emitted by the existing coal-fired power generating units: to complete the ultra-low emission technical upgrades in order to reduce the pollutants and greenhouse gases emission per unit of power generated; to enhance the efficiency of the power generating units in order to reduce the consumption of fossil fuels per unit of power generated.
||Develop technological innovation: to strive for breakthroughs in the area of clean energy and low carbon emission with greater R&D inputs.
Basis of Actions
The actions committed by the Group are based on:
||Policy guidance: commitments made by the PRC government upon joining the Paris Agreement on climate change, plan targets as set out in the "13th Five-year" plans for energy and power of the PRC, "Air Pollution Prevention and Control Action Plan", "Action Plan Of the Upgrade and Renovation for Coal-fired Units to Achieve Energy Saving and Emission Reduction (2014-2020)", among other policies.
||Regulatory standards: "Environmental Protection Law of the People’s Republic of China", "Atmospheric Pollution Prevention and Control Law of the People’s Republic of China", "Emission Standard of Air Pollutants for Coal-fired Power Plants" and other environmental regulatory standards issued by the central and local governments.
The Group accelerates the implementation of its transformational strategies and strives for the developments in clean energy, general development, smart technology and international expansion. In particular, developments in clean energy were ramped up in a bid to reduce reliance on traditional energies and transform from carbon-heavy into low-carbon generation, which is a major component in our transformational development strategy. The established strategy of the Group strongly supports various initiatives coping with climate change.
In strict compliance with the "Emission standard of air pollutants for coal-fired power plants", "Ambient air quality standards" and other pertinent laws and regulations as well as in response to the requirements under "Action Plan Of the Upgrade And Renovation for Coal-Fired Units to Achieve Energy Saving and Emission Reduction (2014–2020)", the Group effectively controlled the emission of airborne pollutants by installing dedusting, desulphurization and denitration facilities and procuring coals with less pollutant contents.
During 2016, the Group embarked upon the researches on the processes of replacing liquefied anhydrous ammonia with urea as denitration agents, with a view to further mitigating risks in work safety and environmental hazards. In particular, pre-upgrade initial works have been initiated in Dabieshan Power Plant, Wuhu Power Plant and Fuxi Power Plant.
During 2016, as part of the ultra-low emission upgrade, the DC-powered dedusting device was installed to further reduce emission of dusts, and GGH tubes were installed to eliminate the visual pollution from white plume.
As part of the environmental upgrade strategy, the Group embarked upon the third environmentally-friendly upgrade with an aim for ultra-low emission. During 2016, 13 power generating units completed their ultra-low emission upgrades. In particular, the generating unit no. 1 of CP Shentou Power Plant completed its ultra-low emission upgrade and was accepted and the electricity sales was awarded for ultra-low emission by Shanxi Province after inspection for its environmental performance. The generating units no. 5 and no. 6 of Pingwei Power Plant III obtained a green electricity tariff of RMB27/MWh for their performance in desulphurization, denitration and dedusting. Fuxi Power Plant received a 50% discount on the flue gas and dust discharge fee in the first quarter of 2016, indicating recognition for our environmental upgrades.
Discharge of sulphur dioxides, nitrogen oxides, and flue gas and dusts by the Group reduced significantly due to our ultra-low emission upgrades, with the total discharge decreased by 2,281 tonnes, 1,293 tonnes and 679 tonnes, respectively.
The Group also reduces the discharge of carbon dioxide and other greenhouse gases through the development of clean energy to cope with climate change in a proactive manner. In 2016, the Group’s clean energy power generation amounted to 18,798,569MWh, representing a reduction in carbon dioxide discharge by 15,076,452 tons.
The Group complies with the safe, healthy and environment protection principle of "Human-oriented, Risk Control, System Management, Green Operations", pursuing high standards of operations and striving to minimize the adverse impact on the society and the environment. It is improving its standards on clean production to provide safe, economic and clean products and services to customers and the society.
2 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 Company.
3 Operational Practices - Safeguarding Stable Development
Supply chain management
The Group persists in developing fair and impartial working relationships with suppliers. Bulk purchases of fuel and other materials are subject to an administrative regime that separates purchase, delivery inspection and acceptance, and supervision, in a bid to eliminate corruption at source. Contracts and agreements are performed in stringent compliance with contractual requirements and all suppliers are treated with respect in an equal manner.
While fulfilling its own social responsibility, the Group also incorporates concepts and requirements of social responsibility in the management of suppliers. A stringent and standardized system for the selection and management of suppliers has been formulated, in a bid to safeguard a healthy and orderly marketplace in a joint effort with other parties in accordance with the "Regulations for the Management of Suppliers", "Implementation Measures for the Evaluation of Material Suppliers", "Implementation Measures for the Evaluation of Tender Suppliers" and other pertinent regulations.
Approval of fuel suppliers is subject to the fulfilment of precedent conditions based on the mine resources or transport support provided by the potential suppliers, which are assessed and examined in a comprehensive manner with reference to their qualification, skill competence, product quality, pricing, after-sale service and reputation, and are graded as I, II and III in accordance with the Catalogue for Grading and Classification of Materials. China Power focuses on assessing and examining suppliers of Grade I and II and those which are newly added or planned to be eliminated. In 2016, the Group assessed 1,664 suppliers of fuels and other materials, and identified 40 unsatisfactory suppliers, 10 of which were blacklisted.
As a power generator, the Group mainly sells electricity generated from its power plants through the local power grid companies. In 2016, seizing the opportunity directed by the PRC government in opening up the electricity market, the Group has been actively fostering its own customer base by proactively liaising with enterprises of large electricity consumption and building with them long lasting and sustainable partnerships in order to increase the market share of power supply.
The Group regards safe production as the prerequisite for stable power supply and sustainable development for the Company in firm adherence to the safety philosophy which maintains that "no risks are uncontrollable, no breaches are unpreventable and no accidents are unavoidable" and the safety production directives of "safety as priority, prevention rather than cure, and comprehensive management". No major incident related to our employees, facilities or the environment occurred in 2016.
4 Community Investment - Promoting Harmony
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. Social charity, education in science and technology and other campaigns that contribute to the well-being of local communities are organized based on their practical needs.
The full version of the "Environmental Protection and Social Responsibility Report" will be posted on the websites of the Company and the Hong Kong Stock Exchange on or before 30 June 2017.