奋进·聚浩荡而击中流

2019 BEIJING ENTERPRISES GROUP CORPORATE SOCIAL RESPONSIBILITY REPORT

a Beijing Enterprises Group Co, Ltd. 奋进·聚浩荡而击中流 Corporate Social Responsibility Report 2019 FOR A BETTER LIFE BG

Design philosophy

The design philosophy comes from New Anecdotes of Social Talk, a classical novel depicting humanity, which describes the view of “beautiful mountain scenery, rushing streams, lush growth of trees and grass as rosy clouds”.

The billowing river in the cover of the Report represents BG’s pioneering spirit in the reform and development course of China, and devotion to the sustainable development and better life b c About the Report CONTENTS BG

BG 01 About the Report About the Report 02 Message from Leaders

04 About BG This Report is the eighth corporate social responsibility report Reporting period: issued by Beijing Enterprises Group Co., Ltd. It reveals BG’s sustainable development practices in environmental, social, and The Report covers the period from January 1, 2019 to December 31, 2019. governance aspects. Some of the contents may be beyond the above period.

CSR Feature Release cycle:

The Report is released annually. Green Investment: Building Dreams with 15 Years of 08 Hard Work Reporting Boundary:

Poverty Reduction and Enhancing Education for the 12 The Report covers all relevant information of Beijing Enterprises Group Elimination of Poverty at the Decisive Stage Co., Ltd. and its subsidiaries. In the Report, “Beijing Enterprises Group Company Limited” is also referred to as “BG”, “the Group”, and “we”.

Compilation Conformance:

Environment Guidelines to the State-owned Enterprises on Better Fulfilling Corporate Social Responsibilities released by the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) Better Environment: Painting Building Green Cities 20 Strengthening Environmental Guidelines to the State-owned Enterprises Directly under the People’s a Beautiful Picture with Green 24 Government of Beijing Municipality on Fulfilling Corporate Social Governance Responsibility issued by SASAC of People’s Government of Beijing Municipality Grass, Dense Forests, White Promoting Energy Conservation and 26 Clouds, and Lush Mountains Emission Reduction Guidelines on Corporate Social Responsibility Reporting for Chinese Enterprises (CASS-CSR 4.0) issued by the Chinese Academy of Social Sciences Clean and Low-carbon Operation 28 GB/T 36000-2015 Guidance on Social Responsibility issued by the Standardization Administration of China Society GRI Sustainability Reporting Standards (GRI Standards) issued by Global Sustainability Standards Board (GSSB) Guidance on Social Responsibility (ISO 26000:2010) issued by International Deep Love: Focusing on Every Creating and Enjoying Quality Life 32 Organization Standardization (ISO) Detail of the Life to Light Up Creating a Better Life for Employees 40 UN Sustainable Development Goals (SDGs) Win-Win Development with Partners 42 Environmental, Social and Governance Reporting Guide (HK-ESG) issued Every Corner of the Heart Public Welfare Undertakings 46 by Hong Kong Exchanges and Clearing Limited

Governance Data Source: The historical datas collected in the Report are the final statistics. Should there be Healthy and Sustainable Development 52 any discrepancy between financial data herein and those in the Annual Report, Proper Governance: Achieving the latter shall prevail. The unit of financial data herein is RMB unless otherwise Greater Development through Regulating Information Disclosure 53 Enhancing Risk Management 54 noted. Well-regulated Operation Practicing CSR Management 56 Report versions:

We strive to ensure the authenticity, completeness, and balance of the Reporting Outlook 60 content, and make breakthroughs in the innovativeness and readability of the Report. No false records, misleading statements, or major omissions exist in this report. Appendix Key Indicators 61 Rating Report 62 Contact information: Content Index 63 The Report is available in both Chinese and English, including paper and Feedback 66 online versions. For the online version, please visit the official website of BG Scan the QR code to read (www.begcl.com) or scan the QR code below. For the paper version, please previous CSR reports of BG send an email to [email protected]. 011 Messages from Leaders 03 reached 39.39 million tons per day, helping helping 39.39 million tons per day, reached Influential 10 the Top BEWG rank first in Industry list Enterprises of Chinese Water for nine consecutive years. Our capacity for power waste for incinerating household and day, per tons 26,932 reached generation for a total of heating services we provided 43.88 million m², ranking second in Beijing as have issued a total of 180 We a heat provider. brand the increased and Cards BMAC million to RMB 121.7 billion. value of Yanjing longing for a Aiming to serve the people’s industrial better life, BG has strengthened through areas poverty-stricken for support providing By solutions. assistance partner employment opportunities for poverty-stricken business development, in 2019, through areas BG invested a total of RMB 6.34 billion in 89 districts, counties, and autonomous banners regions, autonomous and provinces seven of These projects. investment 19 launched and people out lift 4,295 registered helped projects of poverty and get better off. 2020 is a landmark year for BG. Guided by Xi Chinese with Socialism on Thought Jinping Characteristics for a New Era and following the while general principle of pursuing progress will earnestly the Group ensuring stability, to launch new undertakings, work harder and strive high-quality development, promote and larger BG. better, to build a stronger, Time stops for no one, and the seasons keep changing. In a blink of an eye, the year 2019 In struggle. of footprints BG’s with marked deepened reforms 2019, BG comprehensively and started new undertakings, and worked to achieve high-quality development. By hard into momentum transforming the pressure turningwe and opportunities, into challenges as much as possible, made concerted efforts major and undertook our tasks in the “three events” and building Beijing into the “four high-quality promoting gradually centers”, the 2019, In Group. the of development in operating growth maintained steady Group 100.71 RMB realized and performance, and operating income of consolidated billion of RMB 10.29 billion, increasing a total profit year on year by 8.8% and 20.7% respectively the RMB 100 billion and RMB and breaking BG ranked respectively. 10 billion records 208th among the Fortune China 500 and 500 Service Companies 81st among the Top of China. With Life”, BG the mission of “For a Better and design the completed successfully has involved projects key national of construction Area, New Xiongan Sub-center, Beijing in Winter Beijing Expo 2019, Olympics 2022, and Beijing Daxing International Airport, as New the including projects, landmark as well total supply Shougang Bridge. In 2019, BG’s 47.2 billion cubic of natural gas reached capacity treatment meters, and total water Hou Zibo of Party Committee Deputy Secretary Manager of BG Deputy Chairman and General made gains through hard work and moved moved and work hard through gains made 2019 was persistent efforts. through forward the first year for BG to start new undertakings. and struggle with history to tribute paid We with down-to-earth fought for our dream willpower our strengthening By practice. steady development and boosting through our confidence with significant advances, we through higher efficiency to realize strove by profits seek greater management, effective our strengthen and market, better a building for future competitiveness to get prepared of to the requirement Adhering takeoff. efficiently while maintaining quality improving had we development, corporate during stability been in the lead among enterprises supervised Government of by the SASAC of People’s Beijing Municipality in terms of sales revenue As of the end of 2019, BG and total profits. owned 11 listed subsidiaries with total assets of RMB 241 billion. Beijing Enterprises Holding Group Limited (BEHL), Beijing Enterprises Water selected Limited (BEWG), and China Gas were into the list of Fortune China 500 once again. goals centenary the two of the timeframes As the to true remain will BG 2020, in converge original aspiration, continue to fight and chase or stagnate. off slack and never dreams, after high-quality BG will go all out to achieve new in breakthroughs new make development, undertakings, and contribute to the Chinese prosperous moderately a building of dream the great realizing and society in all respects the Chinese nation. of rejuvenation Tian Zhenqing Committee of Party Secretary and Chairman of BG 2019 marked the 70th founding anniversary 2019 marked the 70th founding anniversary Republic of China, and was of the People’s a critical year for building a moderately and society in all respects prosperous achieving the first centenary goal. It was also a significant year for BG to comprehensively and draw an end to the 13th deepen reforms Plan. Five-Year too far for a persistent As “No destinations are a for difficult too are things no and traveler determined fighter”, in 2019, we provided the of celebration the for support strong 70th founding anniversary of the People’s Republic of China, Beijing Expo 2019, the Second Belt and Road Forum for International events in Cooperation, and other major Beijing, and showcased the charm of China of services high-end with again world the to BG. Closely focusing on national strategies worked we Beijing, in events important and “three the guaranteeing in constantly hard the into Beijing building and events” major of a number progressed and centers”, “four which guaranteed the key tasks smoothly, sub- Beijing’s that including situation, good of center is thriving, the magnificent picture the is unfolding gradually, Xiongan New Area development of Beijing-Tianjin-coordinated momentum, is showing strong Hebei region Daxing InternationalBeijing taking is Airport venues of Winteroff, Olympics 2022 in Beijing of an ice and snow world, the beauty present and the painting of “A Thousand Li of Rivers at Yanqi and Mountains” is being recreated BG Resort. InternationalLake Conference

Message from Leaders BG

Corporate Social Responsibility Report 2019

Beijing Enterprises Group Co, Ltd. 02 About BG 05 Setting one clear strategic goal 1 Building a stronger, better better a stronger, Building and striving and bigger BG, of leading provider be a to modern urban integrated services at home and abroad Pursuing development with two wings 2 Adhere to the integration to the integration Adhere and of industrial operation capital operation Improving the Improving distribution of operations in spaces three 3 Rooted in Beijing, face the the face Beijing, in Rooted and go global country, Improving Improving the four links of industrial chains Focusing on five major sectors 4 Provide the city with integrated the city with integrated Provide industrial chain services through investment design, and planning and financing, infrastructure and operation and construction, management 5 Focus on the development of high-end related five closely sectors including clean energy, protection, environmental planning and design, urban for services, beer brewing, their superior basic conditions and good development and demonstrate prospects, commitment to the Group’s its own responsibility Development Strategy Development

Respect employees and make employees feel the sense of belonging and pride as BGers Respect

Share resources, development achievements, and development opportunities with partners to form a value-sharing alliance Sharing and a multi-win situation BG has become a state-owned group combining group BG has become a state-owned capital operation and industry operations with than 1116 subsidiaries and 11 listed subsidiaries, than 1116 subsidiaries ranking and 81st among the Fortune China 500 listed subsidiaries of BG the market value of all totaled RMB 241 billion, and BEHL, BEWG, and marketing in China and overseas. We own more own more overseas. We marketing in China and RMB 100.71 billion, and total profits reached among ranked 208th We 10.29 billion. reached selected into the Fortune China China Gas were 500 ranking once again. among which 9 are listed in Hong Kong. By the listed in Hong Kong. among which 9 are end of 2019, BG’s total assets reached RMB RMB total assets reached end of 2019, BG’s 360.6 billion, consolidated operating income operating income 360.6 billion, consolidated Top 500 Service Companies of China. In 2019, 2019, In of China. 500 Service Companies Top

Be passionate and motivated at work Dedication

Ensure high-quality work up to high standards through dedicated work Devotion been extended Europe, to America, Oceania, Founded by Beijing Municipal Government, Government, Municipal Beijing by Founded Limited, Beijing Enterprises Holdings Limited Holdings Limited Limited, Beijing Enterprises industries that are important engines to Beijing Enterprises Group Company Limited Limited Company Beijing Enterprises Group was incorporated in January 2005 through the the through 2005 January in incorporated was the interconnectivity of infrastructure. It is the development of a modern city, so as to municipal state-owned conglomerate. municipal state-owned responsibility commitment, the Group focuses meet national strategic needs, promote the merging and restructuring of Beijing Holdings Holdings of Beijing merging and restructuring and world-class integrated services for modern across and its China overseas business has Southeast Asia.and and Beijing Gas (Group) Co., Ltd. It is now a It is now a Co., Ltd. and Beijing Gas (Group) ecological service, infrastructure, public on of people’s livelihood and emerging strategic equalization of publicservices and advance committed providing to domestically advanced cities.business BG’s covers over 400 cities environmental protection, the improvement improvement protection, the environmental Corporate Culture Company Profile Company Taking “For a BetterTaking as Life” its social

About BG BG

Corporate Social Responsibility Report 2019

Beijing Enterprises Group Co, Ltd. 04 About BG 07 BEGF Financial services Organizational Structure of BG Structure Organizational BGSC BMAC Cards Government information services BEEI Development of upstream energy resources Secretariat of the Board of Directors of the Board Secretariat of Dispatched Supervisors Board Specialized Committee Board of Directors Board Safety and Environmental Supervision Department Safety and Environmental Office 2022 Winter Olympics Key Projects Research Office Research Audit Department BGCD Urban development Elderly and health care services Property Cold chain sector BERE Government projects and conference Tourism & exhibition City renovation and sports Culture Finance and Securities Department Planning and Finance Department Strategic Investment Department Reform and Development Department Department Human Resources BMEDI Engineering consultancy survey and design BIIC High-end manufacturing Photovoltaics Modern services Value investing Value Cooperation with Hong Kong and Taiwan and trade Tourism BHL Legal Affairs Department Legal Affairs Information Center Secretariat of External Committee Affairs Secretariat Administration Office BBEG LPG Heat supply Design and engineering

Discipline Inspection Committee Labor Union League Committee Youth Beijing Gas Natural gas supply Operation of gas pipelines

Party Committee Beijing Enterprises Group Co.Ltd. Group Enterprises Beijing Natural gas projects Water Environmental and solid protection waste treatment Beer BEHL Publicity Department of Party Committee Organization Department of Party Committee Party Committee Office Inspection Office of Party Committee

Corporate Social Responsibility Report 2019

Beijing Enterprises Group Co, Ltd. 06 Beijing Enterprises Group Co, Ltd. Green Investment: Building Dreams with 15 Years of Hard Work 奋进·聚浩荡而击中流

BG has firmly adhered to the path of green investment since the inception, which will guide BG’s future technological and industrial reforms. Over the past 15 years, the Group has proposed Corporate Social Responsibility Report 2019 systematic green investment strategies to continuously enhance BG’s core capabilities in green industries. green, low-carbon, and circular development. facilitates that structure economic sound a establish and finance green develop to proposed has Congress National progressas well an all-rounddeveloping a modern economic system, and transformation. Besides, the 19th CPC Green development is a vital part of the new concepts, requirement for promoting ecological with 15 Years of Hard Work Green Investment: Building Dreams By developing environmentally friendly industries, improving environmental protection performance, and reducing negative impacts on the environment, BG has realized sustainable growth. The total assets of the Group rose from RMB 42.8 billion in 2005 when it was just founded to RMB 360.6 billion in 2019. Through such efforts, the Group has created continuous momentum for the realization of a better life and boosted economic development through “green” solutions.

Total assets in 2019

RMB 360.6 billion

Feature

08 09 Beijing Enterprises GroupBeijing Enterprises Group Co, Ltd. Co, Ltd. Green Investment: Building Dreams with 15 Years of Hard Work 奋进·聚浩荡而击中流

BG and China Three Gorges Corporation (CTG) jointly established the RMB 100 billion-level BG restructured assets of Beijing Gas and injected the assets into BEHL(HK00392), a Yangtze River Protection Fund to protect the water environment along the Yangtze River. 2019 2007 subsidiary of BG listed in Hong Kong, which played a demonstration role in the market- Corporate Social Responsibility Report 2019 Corporate Social Responsibility Report 2019 oriented reform of China’s public utilities and provided strong capital support for the development of clean energy.

BG officially issued RMB 1 billion of corporate bonds, completing the first round of BG contributed to the green Winter Olympics 2022 by constructing the demonstration nancing in the domestic corporate bond market. project of the low-carbon venues in Yanqing District, Beijing. The Group also pioneered 2018 the stripping and utilization of topsoil in the area, laying a foundation for topsoil protection and ecological restoration.

BEWG acquired 100% ownership of the TRILITY Group, one of the industry leaders BG completed the acquisition of the water technology company Shanghua Holdings dedicated to the delivery of long-term water, wastewater, reuse and bio-solids solutions Major Green Investment Projects of BG 2008 Limited and established BEWG (HK00371). The Group aims to build BEWG into a flagship across Australia and New Zealand. enterprise focusing on recycling water resources and protecting the water ecology.

BG’s Caofeidian (CFD) Seawater Desalination Project with a capacity of 50,000 tons per Rosneft and Beijing Gas closed the deal on the sale of 20% shares of ROSNEFT VCNG 2011 day, which is a key demonstration project for the development of seawater desalination to the Chinese company. Beijing Gas obtained preemptive rights to purchase natural 2017 of the National Development and Reform Commission (NDRC), was completed and gas from Russia, which is conducive to enhancing the safe and stable supply of natural officially opened. gas to the Beijing-Tianjin-Hebei region. BG founded the Tsinghua University-BEWG Joint Institute for Environment Industry, BG successfully issued RMB 2.1 billion in green asset-backed notes (ABN). It was the which deepened the cooperation between universities and enterprises, accelerated first green ABN in China to be truly issued from a company’s balance sheet, leading the transformation and industrialization of scientific and technological outcomes, and innovation in the country’s asset-backed securitization. promoted the implementation of national environmental protection strategies and the The BEWG and China Life Insurance Water Service Fund was officially established with development of emerging industries. the total fund scale exceeding RMB 24 billion. BEWG made a major breakthrough in the new PPP investment model of the integration of industry and finance.

BG acquired China Gas (HK00384), and being the single largest shareholder of China 2012 Gas and expanding the gas business to cover the whole country.

BG completed the acquisition of EEW, the largest energy-from-waste company in Europe. This is the largest overseas merger and acquisition case for Chinese companies 2016 in the field of solid waste treatment and environmental protection, and provides BG bought in 100% stake of two companies wholly owned by COMPAGNIE GÉNÉRALE favorable conditions for the introduction of advanced German technologies into China. 2013 DES EAUX (PORTUGAL) CONSULTADORIA E ENGENHARIA, S.A. (hereinafter referred to BG issued bonds worth over RMB 10 billion in China, including the “Panda Bond”, the as “CGEP”), making a breakthrough in acquiring famous overseas water companies. “Green Bond”, etc., and was awarded the “Most Influential Issuer of Green Bonds” Beijing Gas built the rst BeiDou ground-based augmentation station, which realized the by Caishiv China. application of the BeiDou Navigation Satellite System (BDS) in the eld of clean energy.

BG established Beijing Enterprises Clean Energy Group Limited (HK01250) to build the After signing the Beijing Liangshui River Water Environment Comprehensive Treatment Group presence in the clean energy sector. 2015 2014 Framework Agreement, BEWG developed the BOT model and an innovative model for investment management.

10 11 Beijing Enterprises Group Co, Ltd. Poverty Reduction and Enhancing Education for the Elimination of at Decisive Stage 奋进·聚浩荡而击中流

BG devotes itself to targeted poverty alleviation, and will never stop until winning the final victory. The Group has set up a leading group for targeted poverty alleviation to ensure progress in poverty alleviation tasks. In 89 districts Corporate Social Responsibility Report 2019 and counties (banners) located in the seven provinces and autonomous regions establishing partner assistance with Beijing, the Group invested a total of RMB 6.34 billion in society in all respects would truly be realized. further, the dream of hundreds of millions Chinese people in building a moderately prosperous step one went we as long As stage. critical final the reached China in alleviation poverty 2019, In 19 projects, which has created jobs for 12,955 local people. Poverty at the Decisive Stage Education for the Elimination of Poverty Reduction and Enhancing BG has also donated funds and materials worth RMB 2.93 million to Hebei, Xinjiang and Inner Mongolia. In addition, the Group supports the development of Xibailianyu Village in Miyun District by donating cleaning equipment worth RMB 330,000 to help the people develop agriculture with local features and build beautiful rural areas. At the same time, BG strives to make good education more accessible to children in poverty-stricken areas, and help local families get rid of poverty.

Invested RMB created jobs for

6.34 billion 12955 local people

Feature

12 13 Beijing Enterprises Group Co, Ltd. Building a road for poverty alleviation Supporting poverty alleviation by industrial development: Shaping a bright future Characteristic education: Poverty Reduction and Enhancing Education for the Elimination of at Decisive Stage 奋进·聚浩荡而击中流

Inspiring students with traditional Chinese culture

In March 2019, when there was still a chill After field research, we found that in the early spring, we launched the public Chinese proficiency largely determines welfare project targeting Xinjiang to the development of local children from

Corporate Social Responsibility Report 2019 Solar power generation facilities in Linhe Village, Shenjiaying Town of Yanqing District, donated by BG donate warm clothes to Hotan, Xinjiang, minority groups, and lays the foundation and organized lectures on traditional for maintaining stability and unity of Hotan. Chinese culture. Therefore, we organized a 19-member The development of industries is a All poverty alleviation projects developed volunteer team. The team gave public fundamental way to achieve poverty by BG in the targeted regions have created Through concerted efforts of all employees lectures on traditional Chinese culture in alleviation. In 2019, based on local 12,955 local jobs. In 89 national-level of the Group, we collected more than the Fifth Primary School of Hotan City, resources in poverty-stricken areas, the poverty-stricken counties partnered with 20,000 pieces of warm clothing and 4,000 immersing local students in an atmosphere Group invested a total of RMB 4.682 Beijing, the Group helped lift 4,295 people eco-friendly schoolbags, school supplies, of traditional culture through a variety of billion in the seven provinces and out of poverty through the development toys, sports goods, etc. in only three days. fun forms, and completed a performance autonomous regions (including Tibet, of photovoltaic projects. All the items were distributed among 20 together. These activities sowed the seed Xinjiang, Qinghai, Hubei, Inner Mongolia, BG impoverished villages in “one city and three of truth, kindness, love for culture, and Hebei, and Henan) that receive partner By offering “one company for one village” counties” of Hotan City (including the national unity in children’s hearts. assistance from Beijing, to help local areas partner assistance, the Group earnestly downtown area and the affiliated Hotan fight against poverty through industrial supports the development of green County, Karakax County and Lop County). development. The Group has accelerated agriculture with local characteristics in the completion and production of 8 Bailianyu Village, Miyun District, Beijing. poverty in targeted alleviation, so as to guarantee the long-term effect of our poverty alleviation work. through the development of industries, Group pays particular attention to boosting people’s confidence to get rid of economic strength is the stream, and only with a strong source, could the stream go far. In the process of alleviating poverty strong roots could there be luxuriant foliage. If we compare poverty alleviation to a river, the spirit is water source and the If we compare poverty alleviation to a tree, the spirit is roots and the economic strength are the leaves, and only with industrial investment projects and, at the By opening the market for local green same time, it is planning to invest another agricultural products such as fungus and RMB 1.314 billion in three new industrial pumpkins, BG helps local villagers embark Voice of Stakeholders projects in the targeted regions to help on a sustainable industrial development local areas improve their abilities to achieve path, thereby helping them sustain the development, thus sustaining the growth growth of the local economy. BG is the first company to aid Hotan in 2019, and I am quite impressed of the local economy and empowering the by their donations. locals with means to prosper. Mr. Chen, cadre engaged in aid work in Xinjiang

BG The moment I saw the children standing on the stage, I was moved to

boosting incomes consumption, Creating channels for Poverty alleviation through tears. I could not imagine how those naughty kids, who could not even talk in mandarin fluently, could perform Chinese classics on the stage in such a short period and make such great progress. The power of To alleviate poverty through consumption, participate in poverty alleviation through culture and language brings everyone together. BG encourages more social forces to consumption, thus forming a convenient participate in poverty alleviation. By and long-term purchase channel. In 2019, Ms. Ru, a head teacher of local school enhancing internal and external publicity of BG headquarters as well as all subsidiaries poverty alleviation through consumption, invested about RMB 3.08 million in poverty BG has formed an atmosphere favorable alleviation through the Beijing Mass for the whole group to participate in Entrepreneurship and Innovation Center for poverty alleviation. Labor unions, canteens, Poverty Alleviation, and distributed 1,367 hotels, restaurants, etc. from all levels “poverty alleviation through consumption” of organizations of the Group actively cards among employees. cooperate with the mass entrepreneurship and innovation center to purchase agricultural products in the recipient areas. By establishing production and sales partnerships with recipient areas, RMB million BG ensures the long-term and stable 3.08 Total investment in poverty alleviation purchase of agricultural products in poverty- stricken areas. The Group held the “New Year Celebration and Poverty Alleviation Through Consumption Festival” to motivate 1367 The performance on traditional Chinese culture under BG’s public employees to apply for consumer cards and “Poverty alleviation through welfare project in Xinjiang 14 consumption” cards distributed 15 BG Beijing Enterprises Group Co, Ltd. Shaping a bright future Characteristic education: Poverty Reduction and Enhancing Education for the Elimination of at Decisive Stage 奋进·聚浩荡而击中流 Green Seed Program: Boosting the confidence of teenagers with basketball Promoting environmental protection

Based on the characteristics and protection textbooks among 11,268 resources of the environmental fifth-grade students from 181 schools, protection sector, our subsidiary BEHL, and donated teachers’ books on the launched the public welfare campaign environmental protection courses and Corporate Social Responsibility Report 2019 “Green Seed Program”. Focusing on rewards for outstanding teachers to the “waste sorting” and “waste water Culture and Sports Education Bureau of treatment”, we compiled environmental Laishui County and the Education Bureau protection textbooks for students from of Anxin County. We invested a total of primary schools under BG’s paired RMB 390,000 into the donation, which was assistance program, aiming to popularize selected as one of the Top 10 Responsibility environmental protection knowledge Innovation Cases of the China Corporate Marbury, the head coach of Beijing BEGCL Basketball Club, lead a team of star players to among students and enhance students’ Social Responsibility Year Book. present a fun basketball game at the school. environmental protection awareness. In the process of helping Xibailianyu In addition, Beijing BEGCL Basketball Club BG In 2019, through collaboration with the Village, Fengjiayu Town, Miyun District, invited 50 students and 30 teachers from Culture and Sports Education Bureau Beijing, BG promotes healthy lifestyles the Central Elementary School of Fengjiayu of Laishui County, Hebei Province and and spread positive energy by integrating Town to form a special fans group to the Education Bureau of Anxin County, sportsmanship with basketball. In 2019, watch the first game of the team in the Xiongan New Area, we promoted the On BG visited the Central Elementary School new season at the Olympic Sports Center poverty in targeted alleviation, so as to guarantee the long-term effect of our poverty alleviation work. through the development of industries, Group pays particular attention to boosting people’s confidence to get rid of economic strength is the stream, and only with a strong source, could the stream go far. In the process of alleviating poverty strong roots could there be luxuriant foliage. If we compare poverty alleviation to a river, the spirit is water source and the If we compare poverty alleviation to a tree, the spirit is roots and the economic strength are the leaves, and only with The Way. BEHL – Green Seed Program of Fengjiayu Town to carry out student Gymnasium. During the game, the special where we distributed our environmental assistance and poverty alleviation activities, fans group recited the poem written by Snapshot of the Green Seed Program and donated school and sports supplies, themselves. The poem says, “All of us can such as footballs, basketballs, battledores, feel the deep love of BG for society. With dictionaries, extracurricular books, etc., and star players fighting on the court, the team tickets for basketball games. Marbury, the can be sure to combat all opponents on head coach of Beijing BEGCL Basketball the court of CBA.” Their cheers pushed the Club, led star players, including Sun Yue, atmosphere of the game to a new high and Sun Tonglin and Wang Shaojie, to present the game showed the humanity of BG. a fun basketball game at the school. The game created a cheerful moment for students and teachers, and promoted on- campus basketball.

Providing jobs for students to help them increase family income

Responding actively to the call of the by providing jobs for graduates. In addition, SASAC of People’s Government of Beijing as the only key base for training high- Municipality, we give priority to hiring skilled talents for Beijing’s instrumentation college students from poverty-stricken sector, the Beijing Instrumentation areas when other conditions were the Senior Technical School affiliated to BG same. Our subsidiary, Beijing Enterprises also recruits students from registered Urban Resources Group Limited (BEUR), has households in Chicheng County, Hebei employed a total of 55 college students Province. Aside from exempting students’ from poverty-stricken areas in Zhangjiakou. tuition fees and providing student subsidies, China Gas recruited 24 college students the school teaches students the knowledge from poverty-stricken areas to work for the of mechanical equipment assembly and North China Rural Coal-to-gas Conversion automatic control, and recommends Project and urban gas projects, effectively students to work for school-enterprise The Green Seed Program in Xiongan New Area helping families in poverty get rid of poverty cooperative enterprises after graduation.

16 17 Better Environment: Painting a Beautiful Picture with Green Grass, Dense Forests, White Clouds, and Lush Mountains 19 绿涓滴·草木云山织成锦 E BETTER ENVIRONMENT Painting a Beautiful Picture Painting a Beautiful Picture Grass, with Green Dense Forests, White Clouds, and Lush Mountains A respectable man always follows the order man always follows the order respectable A order the respect we when Only nature. of all, can compassion for and show of nature we build a good ecological environment mankind. of well-being the improve and the By making every effort to protect to BG strives to contribute environment, waters clear with plains mountains, lush and cities with flowers and and blue sky, a building thus everywhere, chirping birds sky, blue see can we where China beautiful rivers every day. mountains, and clear green 20 24 26 28 Building Green Cities Building Green Governance Environmental Strengthening and Emission Reduction Energy Conservation Promoting Clean and Low-carbon Operation

Corporate Social Responsibility Report 2019

Beijing Enterprises Group Co, Ltd. 18 北京控股集团有限公司Building Green Cities Better Environment: Painting a Beautiful Picture with Green Grass, Dense Forests, White Clouds, and Lush Mountains 奋进·聚浩荡而击中流 Clean energy

2018 Natural gas 年社会责任报告

Stable supply Enhanced guarantees

Natural gas is an essential part of urban The Group has strengthened the handled 69 gas theft cases, completed infrastructure. As a clean energy source, capacity to guarantee the supply of the recovery of RMB 14 million gas natural gas not only provides energy for clean natural gas. Beijing Gas has fees, and reduced the gap between urban households, but also protects the successfully supplied natural gas to purchases to sales to 3.4%, effectively blue sky and white clouds in cities. In Beijing Daxing International Airport, guaranteeing the safety of state-owned 2019, BG’s natural gas supply reached Beijing Xijiao Airport, Xiangshan assets. The Heating Engineering Design 47.2 billion cubic meters, serving more Revolutionary Memorial Hall, and Beijing Institute affiliated to BBEG, with the than 42.6 million gas users. Sub-center. Besides, the company serves advantages of its Xiongan Branch, small and micro projects, and expands won the bids of multiple projects, Beijing Gas, an enterprise directly its scope of investment to outdoor low- which involve more than 100km of gas controlled by BG and China’s largest pressure pipelines. In 2019, the company pipelines, 70km of heat supply pipelines, single-city gas supplier, has achieved a successfully sent gas to 1,460 projects. It seven high-voltage regulator stations, BG total supply of 17.2 billion cubic meters also established the Hebei Xiongan Jijing and over 100 heating stations. of natural gas throughout the year, Gas Co., Ltd., becoming one of the first serving 6.33 million users in total with gas enterprises to establish a branch in

of nature and protecting the ecology of cities. path of green development by complying with the order Committed to building green cities, BG adheres to the its 23,800km of natural gas pipelines. Xiongan New Area. By cracking down on gas thefts due to management The annual natural gas supply of China problems, the company inspected more Gas reached 30 billion cubic meters, than 93,000 public service gas meters

which helped reduce CO2 emissions by throughout the year, investigated and An employee from Beijing Gas checks the LNG storage tank 80 million tons, SO2 by nearly 700,000 tons, and smoke and dust by around 400,000 tons, equivalent to the benefits brought by more than 170 million trees. China Gas has more than 600 natural Industrial chain extention Coal-to-gas gas pipeline projects with a total length of more than 300,000km. It provides Beijing Gas vigorously promotes the Beijing Gas takes the initiative to comprehensive energy services for more optimization and extension of the implement the “three-year plan on than 36 million households and 300,000 industrial chain. In 2019, Beijing Gas defending the blue sky” by promoting industrial and commercial enterprises invested in a vehicle CNG project of clean heating renovation and and public service users across the Russia which deepened the close accelerating the management of bulk country, bringing benefits to more than cooperation between the two parties in coal, effectively contributing to tackling 150 million people. the downstream market through their air pollution problems in Beijing. own advantages, built underground gas storage facilities in Chongqing, developed China Gas has invested RMB 20 and put in use the Tianrong L-CNG billion in coal-to-gas transformation. Station in Zhuozhou, Hebei, which is the It has completed the replacement of southern portal of Beijing. The company bulk coal in 17 million households in also accelerated the implementation Beijing-Tianjin-Hebei region and their of key energy projects involved in the surrounding areas, as well as the Fenwei

Universal Beijing Resort, the Fresh Plain, reducing 780,000 tons of SO2

Agricultural Products Distribution Center emissions, realizing a clean heating rate An employee from Beijing Gas checks the domestic gas meter and so on, and expanded the steam of over 50.7% for north China and 72% installed during the rural coal-to-gas transformation. supply project of Tangshan Nanpu for the “2+26” cities in the Beijing- Total supply of natural gas Economic Development Zone and the Tianjin-Hebei region and its periphery. 【Note】The “2+26” cities include Beijing, Tianjin, Shijiazhuang, Tangshan, Baoding, Langfang, Cangzhou, heat supply project of Tenhong Real Hengshui, Handan, Xingtai, Taiyuan, Yangquan, Changzhi, Jincheng, Jinan, Zibo, Liaocheng, Dezhou, Binzhou, Jining, Heze, Zhengzhou, Xinxiang, Hebi, Anyang, Jiaozuo, Puyang, Kaifeng. . billion m³ Estate, with a total investment of RMB 47 2 200 million.

20 21 Better Environment: Painting a Beautiful Picture with Green Grass, Dense Forests, White Clouds, and Lush Mountains 23 tons tons tons tons After the accident, BEWG promptly BEWG promptly accident, the After responded to the requirements of the Ministry of Ecology and Environment. It resumed production in one day anddeployed the required chemicals the During possible. as quickly as accident, the company treated a total of426,000 tons ofpolluted water and honored the solemn commitment of draining “never away one drop of polluted water”. Total amount of hazardous waste Total Total amount of hazardous waste hazardous of amount Total generated per RMB 10,000 output value amount of Total non-hazardous waste amount of non-hazardous Total waste generated per RMB 10,000 output value 208,000 0. 34 774,000 1. 27 In BEWG August received 2019, a thank-youletter from the Ministry of Ecology and Environment. The letter commended BEWG’s awareness of thebigger picture, senseof responsibility, and efficient response Explosivein the “3.21 Accident” of Tianjiayi Chemical Ltd. Co., a 14:48At 2019, on March 21, Tianjiayi at occurred explosion major Chenjiagang in plant Chemical Industry Chemical Chenjiagang, Park, Yancheng, County, Xiangshui Water Chenjiagang BEWG’s Jiangsu. Ltd. isTreatment only Co., three kilometersaway from the explosion site, and the lift pump station of the company is next to the Tianjiayi Chemicalplant and about 100meters to the center of the explosion.

Never drain away one drop of polluted water Case Recycling and reusing wastes Recycling and reusing the covers business waste solid BG’s the waste, household of incineration disposal of kitchen and treatment and sludge, excrement, waste, waste (including medical hazardous waste) and waste, industrial hazardous etc., which reaches soil remediation, As of of countries and regions. scores the end of 2019, the power generation incinerating capacity of BG through 26,932 tons domestic waste reached and the capacity of hazardous per day, tons 115,000 reached treatment waste For our overseas businesses, per year. of RMB 4.68 EEW achieved a revenue pole billion, becoming another growth for corporate development. At the has strengthened same time, the Group technical communication with EEW branches overseas, which promotes the transformation and upgrading of technologies protection environmental such efforts, and techniques. Through solid and reuse we strive to recycle resources green into it make and waste, for better city life. Green Green resources Benefiting the people with clean water Benefiting the focusing on As a flagship company and of water resources the recycling our of water ecology, the protection the daily subsidiary BEWG increased capacity by 3.8 waste water treatment a designed million tons, guaranteed of capacity treatment water urban and led the day, 39.389 million tons per industry in terms of stock and increment treatment water total BEWG’s 2019. in first the at maintained has capacity the around place of China and third the top at remained had and world, of Enterprises 10 Influential Top the of As of the end Industry. Chinese Water 1,252 of total a had BEWG 2019, of water plants, including 1,058 sewage plants, 162 water supply treatment water plants, and plants, 30 reclaimed two seawater desalination plants. emissions 2 Natural Gas Engineering Technical Regulations, Regulations, Technical Natural Gas Engineering In 2019, BBEG, which is a key channel for LNG supply in Beijing, Beijing, for LNG supply in which is a key channel In 2019, BBEG, 1.7 million than more tons of LNG for than 173,000 supplied more the opportunity of serving types. Seizing the new users of various BBEG was designated Zone, Trade of Hainan Pilot Free construction Hainan Province of of the local standard as the editor-in-chief the photovoltaics of development trend following the In 2019, of two adjusted the business structure BG actively sector, the promoted companies, and effectively photovoltaic equipment photovoltaic businesses. The Hunyuan 20 stable development of undertaken by BIIC alleviation project MW photovoltaic poverty included in the first batch becomes the only photovoltaic project in Datong, of national photovoltaic poverty alleviation projects of accumulative capacity Shanxi. As of the end of 2019, BIIC’s which can generate 241 MW, photovoltaic power plants reached on the Based solar power. 343 GWh of electricity through CO photovoltaic power plants, the company reduced by 340,500 tons and saved 111,600 tons of standard coal. by 340,500 tons and saved 111,600 tons of standard by Hainan Provincial Department of Housing and Urban-Rural Housing and Urban-Rural Department of by Hainan Provincial to gas” example for the “firewood Development. It set a good Hainan Province. of Anding County, special project China is relatively rich in coal and has insufficient petrol and and petrol insufficient has and coal in rich is relatively China for clean and natural gas. The application of technologies significance for ensuring efficient utilization of coal is of great Our problems. energy security and solving environmental the comprehensive subsidiary BEEI, has actively promoted coal 2019, BEEI’s exploration and clean utilization of coal. In and substantial progress realized in Ordos gasification project achieved staged results. "Firewood to Gas" Rendering of Xixian waste-to-energy project Clean utilization of coal Photovoltaics LNG

Committed to building green cities, BG adheres to the path of green development by complying with the order BG Building Green Cities of nature and protecting the ecology of cities.

Corporate Social Responsibility Report 2019

Beijing Enterprises Group Co, Ltd. 22 Better Environment: Painting a Beautiful Picture with Green Grass, Dense Forests, White Clouds, and Lush Mountains 25 In order to protect precious plants, plants, precious to protect In order the builders of the National Alpine Ski Center have set up a “circa situ conservation community” and files for each strain of plant created transplanted here. called “Sorbus alnifolia”, A tree a challenge to the brought however, only nine are builders. Although there in strains of Sorbus alnifolia growing Beijing, this one is right in the way of the Therefore, the construction road. builders took the “in site conservation to give way to such a measures” plant. scarce The challenge brought The challenge brought by Sorbus alnifolia Yanqing Competition Zone of the Winter Competition 2022 Olympics Yanqing President Xi stressed that, “to host a green Winter that, “to host a green top Olympics, we have placed Xi stressed President environmental and conservation resources preservation, priority on ecological of the background of beautiful China against friendliness, leaving an impression the Winter Olympics 2022”. The biggest secret of environmental of environmental The biggest secret in the bags is sealed protection on both sides of the construction at the construction site of road in located zone competition Yanqing Mountain, Zhangshanying Xiaohaituo Beijing. Topsoil District, Yanqing Town, environmental is a kind of precious which is of particular resource, competition importance in the Yanqing zone, and the stripping of topsoil is for projects. later ecological restoration Design the of manager Kun, Liu “What’s said, BEJOC, of Department collected topsoil the is bags these in which will be local sources, from paved back onto the racing tracks upon the completion of racing track construction, so that those plant seeds contained in the topsoil will sprout again to make the racing tracks turn again.” green “The secret of environmental of environmental “The secret in bags protection”

Holding the bottom line of ecological protection in Yanqing Case Competition Zone of the Winter Olympics 2022 Ecological Ecological restoration BG pays equal attention to project constructionto project BG pays equal attention to view a with restoration, ecological and resources ecological original the conserve competition zones of the Winter in three construction Olympics 2022 and reduce as possible to. impacts on environmental Construction Group Beijing Enterprise JO practitioner steadfast a been has (BEJOC) “Winter of the concept of green Olympics” of the Yanqing in the constriction process Winter the of zone competition Olympic a 2022. The company has created matrix of environmental responsibility implemented all measures, protection on environmental kinds of requirements and drafted a series thoroughly, protection plans including protection of environmental Ecological Restoration Planning Scheme, Protection Plant and Animal Resources and Wildlife Scheme, and Protection Technical Habitat Construction Scheme. The ecological carried is zone competition the in protection flora and fauna stripping, topsoil through out water utilization, stone waste protection, supervision project protection, environmental protection & detection, and environmental BEJOC also has conducted publicity. ecosystem biodiversity surveys in Yanqing years and formulated in successive three and the findings showed reports, related biodiversity had not been that the regional due to construction. Meanwhile, reduced Handbook for the Ecological Protection the strengthens Personnel Construction and a special publicity, ecological protection scheme for monitoring biological invasion matrix of environmental and a responsibility has been formulated to measures protection implementation of the drive the thorough Wintergreen Olympics. as the key and urban sewage as the key and urban sewage breakthrough as the treatment the established sides both point, new model and new mechanism River of collaboration for Yangtze conservation and building green development demonstration zone systematic governancethrough and demonstrative popularization. A Ecology and Yangtze joint venture found. was Ltd. Co., Environment a bid of the won also two sides The plant sewage treatment comprehensive (one Yueyang downtown in project PPP of the first batch of pilot demonstrative for collaboration for projects River conservation). China Yangtze Development Green River Yangtze was co-funded to Investment Fund River Economic Belt serve the Yangtze invest deeply in development strategy, efficient resource water fields as such restoration, ecologic water utilization, protection, environmental water and better step toward which is a concrete the of restoration and protection River ecological environment. Yangtze of environmental hazards, and tries and tries hazards, of environmental and restore nature the best to protect the realizing thus ecosystem, the life urban of coexistence harmonious BG invested and natural environment. 22.83 million in a total of over RMB environmental energy conservation and in 2019 and guaranteed zero protection major accidents or above. 1,500 km of riverways, laid over 4,000 km of pipelines, and completed the of over treatment comprehensive 7,000 km² of river basins, all of which Credible of title the win BEWG helped Protection. Environmental of Enterprise The Shaping River Comprehensive located in Heshan Project Treatment was honored Guangdong Province City, Industry the Ecological Environment of 2019. Innovation Project “We shall never allow the ecological ecological shall never allow the “We River to of the Yangtze environment continue deteriorating in the hands of our generation, and we must leave our descendants a clean and beautiful After the 18th CPC River.” Yangtze China has put national congress, the ecological environment restoring River at a dominant of the Yangtze position. The ecological protection a only not is River Yangtze the of significant practice for advancing but also an the ecological progress, important foundation for realizing “Five in One” masterplan and China’s building a beautiful China. BEWG has been taking an active to related projects major in part the Yangtze of restoration ecological River basin, and contributing to the grand blueprint of collaboration River conservation. for Yangtze In 2019, BEWG and China Three in- developed Corporation Gorges depth cooperation. By taking the and substantial improvements overall quality of ecological environment

Joint efforts for Yangtze River conservation Case Water Water pollution control Environmental Environmental management protection BG pays great attention to environmental attention to environmental BG pays great and management in protection with and complies strictly production, on and regulations laws national The Group protection. environmental in reinforcing urges continued efforts early warning protection environmental makes and emergency mechanism, the control in promoting solid progress Chinese President Xi Jinping once once Jinping Xi President Chinese pointed out that “we must thoroughly for plan action implement our water controlling and preventing pollution so that the people can once riverbanks along clean again enjoy green seen swimming can be that fish waters them.” As of the end of in around 2019, BEWG had engaged in over 30 comprehensive water environment governed over projects, treatment

All living creatures grow together without harming one another, Strengthening and various codes of conduct run parallel without interfering with one another. Environmental protection and economic Environmental BG development are never a zero-sum game. BG always insists on a sustainable development pattern, unfolding a magnificent picture Governance that humans and nature coexist harmoniously.

Corporate Social Responsibility Report 2019

Beijing Enterprises Group Co, Ltd. 24 Better Environment: Painting a Beautiful Picture with Green Grass, Dense Forests, White Clouds, and Lush Mountains 27 2019 16.92

2018 18.40 3,000. Unit: 10,000 tons Annual energy consumption in total 2017 17.62 million. Even in winter, the million. Even in winter, 1 to see more 2019 25.87 put the first bicycle track designed by put the first bicycle track designed by BMEDI into use. The bicycle track with a total length of 6.5km shortens the commuting time to only 26 minutes. belt connecting It is not only a green Huilongguan to Shangdi, but also a transport demonstration project green and low-carbon for building a green transport system and optimizing the configuration of traffic modes. Scan the QR code 2018 27.61 2017 26.73 Unit: 10,000 tons Greenhouse gas emissions gas Greenhouse 2019 39.45 2018 46.42 The straight-line distance between The straight-line distance between Huilongguan of Changping District, Park of Beijing and Shangdi Software Haidian District is only 3.8km, but the commuting distance is extended to around of population A 6km. about 11,600 commuters costs about 40 minutes on average due to the long morning the during time queuing deal with and evening rush hours. To Beijing the low commuting efficiency, By the end of 2019, the total number of commuters on the special bicycle track (from Park) had exceeded Huilongguan to Shangdi Software average number of commuters on weekdays remained around around average number of commuters on weekdays remained 2017 48.99 Unit: ton Nitrogen oxide Nitrogen emission reduction 2019 342.55 2018 395.58 2017 Unit: RMB 10,000 406.24 Total investment in Total protection environmental

2019 2200 2800 2018 The first special bicycle track in Beijing designed by BMEDI 2017 Waste discharge volume of BBEG in 2019 discharge volume Waste Comprehensive energy Comprehensive consumption per unit output value Unit: tce/RMB 10,000 3000

11,600 m², thus improving the the m², thus improving tons has been saved in in tons has been saved 53,000 27,000

Building green belts and planning low-carbon transport Beijing Gas has finished the carbon the carbon Beijing Gas has finished of SHEA an and verification, emission about regional green commuting environment commuting environment green regional the citizens with and providing effectively and fitness. a pleasant space for leisure successive four years. and low- BMEDI, which pursues the green has designed concept, transport carbon the first ever bicycle track in Beijing to serve a population of around commuters along the track. The bicycle bicycle The track. the along commuters and corridors green with equipped is track terraced flower ponds totaling a green of area Case demonstration projects Emission reduction BG introduces technical improvements technical improvements BG introduces emission the pollutant to reduce to the and make due contributions ecological conservation. MWh m³ m³ kWh m³ m³ Resource conservation BG continues to speed up the renovation up the renovation BG continues to speed environmental in energy conservation and Beijing Enterprises Holdings protection. Co., Ltd. Technology Environment the upgrading (BEHET) has carried out of the fluidized-bed and reconstruction furnace furnace fire-grate into the to meet Adopting emission detection standards. winter disease the strategy of “treating the hazard in summer” , BBEG organizes of old pipe network cleanup renovation and efficiency operating the improve to service quality of the heating plant, and has compiled a book titled Guide on Selecting Heating Pump Units for Heat to provide Gas Waste Flue Recovery from guidance on energy conservation and Beijing Enterprises consumption reduction. applied has Ltd. Co. Development City solar water heaters to its development full use of natural for making projects carbon emission, energy and reducing and has adopted the design of external to wall insulation system and pitched roof lower energy consumption. Natural gas consumption per Natural gas consumption per RMB 10,000 output value Electric power consumption per per Electric power consumption RMB 10,000 output value Energy consumption in 2019 Energy Natural gas consumption Fresh water consumption Fresh water consumption per Fresh water consumption per RMB 10,000 output value BG’s solid waste business BG’s Energy consumption in 2019 49,400 0.08 312. 4 5.15 10,095 16. 64

Promoting Energy BG always sticks to the concept that green development is the fundamental solution to the pollution, and shoulders the mission BG Conservation and of bringing back blue sky, white cloud, Emission Reduction and twinkling stars for the people.

Corporate Social Responsibility Report 2019

Beijing Enterprises Group Co, Ltd. 26 Better Environment: Painting a Beautiful Picture with Green Grass, Dense Forests, White Clouds, and Lush Mountains 29 51 47.1 29.24 1196 2452.8 2019 2018 53 54.11 30.53 1246 2459.52 Water saving Water We post water-saving signs in public signs in public post water-saving We the in pressure water lower areas, the water flow of pipeline and reduce all prevent we Moreover, water. tap kinds of water leakage, install separated water gauges at the water use sites of usage and of the high frequency big outflow of water to strictly control water consumption. 2017 56 54.25 30.96 1257 2616.4 Set Ton MWh Ton Kiloliter Electricity saving Consumables saving BG Jiao’ao Center cartridges for office use Toner Paper consumption for office use Electricity consumption for office use Water consumption for office use Water Disposal volume of office waste Green office performance index office Green We use energy-saving lamps, turn off lamps, turn use energy-saving We off all electrical patrol all powers timely, equipment in the building every day after work, and arrange a large number for purifying the air. plants of green We apply the cloud printing devices and apply the cloud We use both sides of the paper to reduce paper; we also set up a carton office the use of sharing box, and promote cartridges, regenerative paper, recycled and the like. As a positive response to to response positive a As Blue Sky Protection Beijing’s Campaign, Beijing Beiyi Vacuum Innovation under Ltd. Co., Technology continued made has BIIG in intensifying the efforts management of environment early warning mechanism, specific the formulated Atmospheric Pollution Control and Prevention Contingency Plan, mobilized all employees and tenants to not commute by motor raw using stop vehicles, materials and products containing volatile substances, the dispatch of and reduce business cars by 30% in case of special weathers.

Building the green offices Case

Green office at Beijing Gas’s 96777 customer service center office at Beijing Gas’s Green and protecting the blue sky Green Green office BG is an active advocate of the green BG is an active advocate of the green are staff concept. All office office in office” to practice “green required the strengthen and routine office the power, of saving water, awareness and consumables. It is encouraged and paper-less to build an electronic video and telephone organize office, on items approve and conferences, mobile clients. Eco-friendly public Eco-friendly activities welfare BG firmly establishes and thoroughly and thoroughly BG firmly establishes and low-carbon implements the green gathers all the development concept, to participate the Group from strengths activities, in eco-friendly public welfare day publicity, including world water briefing, breeding classification waste planting, trees and release, and China. contributing to a beautiful walking BG” • Way the “On 2019, In was updated. on WeChat small program encouraged to All employees were participate in the walking and make donations for planting 10,000 saxaul Enterprises in Alxa League. Beijing trees Co., Technology Holdings Environment and Hanzao Culture Ltd., BG Volunteer, co-organized a waste classification event, waste about knowledge the share to mini- few A treatment. and classification designed to encourage the games were citizens to take active parts in the waste to contributions make and classification protection. environmental health and environmental protection. health and environmental “On the Way • BG” walking small program stresses stresses • BG” walking small program “On the Way Low-carbon operation As a smart city, Beijing gives full play play full gives Beijing city, smart a As capacity to the low-carbon operational choose the We the source. from degradable environmentally-friendly (a kind of material PETG for BMAC optimize and Cards, card) transit public and sorting system. recycling the Cards used and less were The physical Cards virtual the number of newly-issued in was up to 12.41 million pieces Cards physical million 4.38 addition, In 2019. and 4.5 million had been recycled Cards ones had flowed back to the market, which means that over RMB 15 million cost has been saved, of card-making the low-carbon improving greatly operational capacity.

BG strives to actively advocate the simple, moderate, Clean and Low- green, and low-carbon work and life styles, and

BG present the ordinary people a beautiful city with birds’ carbon Operation twitter and fragrance of flowers.

Corporate Social Responsibility Report 2019

Beijing Enterprises Group Co, Ltd. 28 Deep Love: Focusing on Every Detail of the Life to Light Up Every Corner of the Heart 31 S DEEP LOVE DEEP Focusing on Every Detail of the Life to Light Up Every Corner of the Heart One who loves other people is always loved loved always is people other who loves One people is other by them; one who respects 15 years of After by them. always respected the strengthened development, BG has already faith of “benefiting people by doing things are beneficial to them” for seeking a fair balance always upheld the between morals and profits, development thought of “putting the people first”, and ensured alignment in thought and action with the masses, thus writing a brilliant livelihood and the of the people’s chapter beautiful urban life in the new era. 32 40 42 46 Creating and Enjoying Quality Life Creating Employees Life for a Better Creating Development with Partners Win-Win Undertakings Public Welfare

Corporate Social Responsibility Report 2019

Beijing Enterprises Group Co, Ltd. 30 Beijing Enterprises Group Co, Ltd. Quality Life Creating and Enjoying of the Heart Deep Love: Focusing on Every Detail of the Life to Light Up Corner Premium products

Planning and design

Corporate Social Responsibility Report 2019 BG takes urban planning as a guide

to serve the sustainable development My Country and Me: Story of the first flagpole PRC BMEDI, which was founded in 1955, China(Chang’an Avenue), Entrance of the city. With the great originality has always been committing itself road to China (Capital Airport of an urban planner, BMEDI, under to planning the city and serving the Freeway) , the first urban expressway the brand of BG, took the lead in people. In such fields as comprehensive in China, the first urban interchange designing the Beijing sub-center transportation, water resource and in Beijing, the largest underground environment, underground space, and comprehensive transport hub in Asia, comprehensive transportation hub, smart city, the Institute always plays the largest water purification plant in which is the junction of three railways an active role in responding to social China, as well as the world’s largest and three urban rail transit routes. As concerns and serving urban planning full underground water recycling plant. an important gateway to the sub-center and construction. As a trailblazer, In 2019,the story between Lin Zhiyuan, of downtown Beijing, this underground BMEDI has left significant footprints the first ever Design Master of BMEDI, one after another: the first flagpole and the first flagpole of the PRC was comprehensive transportation hub will for the founding ceremony of the adapted for the screen with the exciting be the largest one of its kind in China PRC, the longest and widest street in scenes reproduced in the film The Eve. upon its completion. The Institute also has successfully completed the field investigation and infrastructure Rendering of Beijing Tongzhou Sub-center support mission for the 2019 Beijing Transportation Hub designed by BMEDI BG International Horticultural Expo (Beijing Expo 2019). It fully engaged in the construction of Xiongan New Area to

spirit to build quality and beautiful urban life. perfect state”, BG always values the craftsmanship to the people and all life forms, finally reach a run a business, we must respect, care, and be kind a country or As the ancient Chinese said, “to govern provide 37 services involving preliminary planning study and design consultation to the Qidong Area, Rongdong Area, and Zangang Area, and greatly facilitated the opening of the Daxing International Airport highway, the completion of the major structure of

municipal auxiliary projects in the airport Case working area, and the smooth operation of Beijing Daxing International Airport.

In 2019, BMEDI won 31 excellent

engineering survey and design awards of the 70th founding anniversary of PRC New Shougang Bridge opened to celebrate New Shougang Bridge, a masterpiece The New Shougang Bridge is of dual Beijing, 15 of its projects were included Official Opening of the Beijing Daxing International Airport Highway designed by BMEDI designed by BMEDI, was completed eight-lane driveway, with four lanes in the nomination list of the survey and and opened to traffic in 2019. Its each for the upper and lower lines. design industry for celebrating the 70th completion marks that Chang’an A 3.5m-wide non-driveway and a founding anniversary of the People’s Avenue, known as “the longest and 3m-wide sidewalk are designed for widest street in China”, reaches both sides of the driveway. The main Republic of China. its planned length and becomes a bridge is equipped with pedestrian veritable “100-li street”. The “gate of stairs, enabling the citizens to harmony” of New Shougang Bridge is appreciate the landscape of Yongding designed as a gate connecting the city River both up from the Bridge or down Excellent engineering survey with nature, and implies the cultural by the river bank. The broad space and design awards relations among mountains, waters, under the Bridge is also to be opened and cities. The bridge, which is merged for public leisure and recreation. into nature in a smart way, features a 31 novel structural system and a unique curved appearance. With quite a few indicators leading in China and even in the world, the New Shougang Planning and design projects Bridge has been hailed as one of the for Xiongan New Area most difficult bridges for design and Case construction in China. Rendering of the High-speed Railway Station of 37 Xiongan New Area designed by BMEDI

32 33 Beijing Enterprises Group Co, Ltd. Quality Life Creating and Enjoying of the Heart Deep Love: Focusing on Every Detail of the Life to Light Up Corner Corporate Social Responsibility Report 2019

The Second Belt and Road Forum for International Cooperation is held at Yanqi Lake Winter Olympics 2022 venue constructors are conducting a snow-making test. International Convention & Exhibition Center.

Quality projects High-end manufacturing Excellent beer brand Exhibition service

The Group persists in building quality BIIC is committed to creating a “high- High quality is the foundation for BG comprehensively improves its

brand projects. In 2019, the municipal The Vast Land firstly reproduced beside the Yanqi Lake end and cutting-edge” industrial system creating excellent brands. Therefore, service capabilities and draws on its The Vast Land (previously auxiliary projects of Beijing Expo known as Thousands Li of by constantly promoting technical Yanjing Beer keeps optimizing the experience of serving large national 2019 was officially put into operation Rivers and Mountains) is exchanges, developing higher industrial product structure, and has developed events. After six months of meticulous to ensure the successful holding of an enduring and world- standards, and conducting research and the beer flavor database to effectively preparation, one month of intense BG the exhibition; the construction and renowned work by the cooperation on intelligent manufacturing, ensure high quality. Through the improvement before the start of the painter Wang Ximeng in operation of the Winter Olympics 2022 visual recognition, semiconductor intelligent management process and event, and more than 100 daily special the Northern Song Dynasty. venues have been shifted into the Based on The Vast Land equipment, environmental monitoring, refined management strategies, all drills, four comprehensive drills and

spirit to build quality and beautiful urban life. perfect state”, BG always values the craftsmanship to the people and all life forms, finally reach a run a business, we must respect, care, and be kind a country or As the ancient Chinese said, “to govern “test-ready phase”, the racing track and combined with the explosive detection, high-end sensors, physical and chemical indicators of two drills covering all elements, 1,536 at the National Alpine Skiing Centre traditional architectural etc. Beijing Beifen-Ruili Analytical Yanjing’s beer products, including management and service members has become the first alpine track with features and modern Instrument (Group) Co., Ltd. (BFRL), a amaroids and carbon dioxide content, from BG contributed their parts to the architectural elements, international certification, and the Yanbai Manor reconstruction subsidiary of BIIC, actively carries out satisfied the relevant standards. The success of the Leaders’ Roundtable National Sliding Centre has completed project--a key project for the R&D of key technologies such as portable company’s sales in 2019 reached 3.81 of the 2nd Belt and Road Forum for the closure and connection of China’s extension and renovation mass spectrometry, infrared spectroscopy million kiloliters, and its brand value International Cooperation in 2019, first high-intensity double-curved of Yanqi Lake International and high-precision photoacoustic reached RMB 121.7 billion, ranking and once again showed the world the Convention & Exhibition track; Beijing Yanqi Lake International spectroscopy, and has made new progress 41st in the “China’s 500 Most Valuable strength of “BG in providing high-end Center-- commenced in Convention & Exhibition Center has May 2019, making it the in the development of environmental Brands” list. In 2019, Yanjing Beer exhibition services”. quickened its pace in extension and first engineering project analysis and monitoring instruments. launched the “The Eight Great Sights renovation, and the major structure of entering the implementation Beijing Jingyi Automation Equipment of Yanjing” craft brew product line; Yanbai Manor has been capped; the phase and seeing the Technology Co., Ltd. successfully the company won eight awards at the substantial progress. Upon project of Tongzhou Port Economic its completion, the project, developed China’s first automatic World Beer Awards, the CBC China Zone has seen a comprehensive which is considered as the wafer flipping and winding machine, International Beer Challenge, the Asian progress of engineering construction preface of The Vast Land, breaking the technological monopoly Beer Championship, and the World and operation; BMEDI’s Sanyuan Bridge will add luster to the Yanqi of foreign companies. BIIC Atmospheric Beer Cup. Lake and present the best overhaul project has won the award Environmental Protection Technology Co., gift to the successful holding of FIDIC outstanding project, and the of The Second Belt and Road Ltd. has also achieved a breakthrough

project outcomes have been included Case Forum for International in the mobile monitoring of VOCs, and in the Ministry of Transport’s sci-tech Cooperation. launched new projects in cities such as achievements promotion project library Nanjing and Shenyang. to present a new technology and a new model for urban bridge refurbishment. The projects of Beijing School and Police Service Center of Beijing Municipal The total number of Public Security Bureau Tongzhou management and service Branch, which were undertaken by members from BG made Beijing Properties Holdings Ltd., have preparations for the forum won the highest prize for engineering project quality at a municipal level-- 1536 Gold Prize of Beijing Great Wall Cup for Automatic wafer flipping and rewinding Building Structure. machine produced by Beijing Bodian “The Eight Great Sights of Yanjing” themed 34 Optical Tech. Co., Ltd. cultural and creative craft beer 35 Beijing Enterprises Group Co, Ltd. Quality Life Creating and Enjoying of the Heart Deep Love: Focusing on Every Detail of the Life to Light Up Corner Meticulous Smart services city

Bearing in mind that innovation is the primary driving force behind the Group’s development, BG has always pursued scientific and technological innovation. In 2019, the Group invested more than RMB 400 million in scientific research, and obtained 204 new

Corporate Social Responsibility Report 2019 In February 2019, rocks fell down from mountains near the ice lantern exhibition area in the Longqing Gorge Scenic Area. After immediate licensed patents. investigation, the investigation team confirmed that this was a general environmental emergency. The scenic area launched an emergency plan immediately. BG invested more than RMB 17.67 million, and BGI Beijing Gas successfully completed the Engineering Consultants Ltd. established a project department in charge key research and development tasks of the Beijing Longqing Gorge Scenic Area Slope Protection Project, which for the National Internet of Things and completed the slope protection and stabilization of 63,000 square meters in the Longqing Gorge Scenic Area. On September 3, the renewed scenic Smart City, and the special R&D tasks area was reopened to tourists. for the blue sky action in the capital.

The main torch designed by a research institute affiliated to BBEG made a stunning debut at the 7th CISM Military World Games. Beijing Gas and Heating Engineering Design Institute, one of BBEG’s subsidiaries, founded the Dao Shi Research Institute to pursue BG innovation in the new energy field, and Front cover of the first issue of compiled a special issue named Xin Dao Xin Dao Night scene of the Longqing Gorge Ice Lantern Festival in 2019 (Technological Innovation). spirit to build quality and beautiful urban life. perfect state”, BG always values the craftsmanship to the people and all life forms, finally reach a run a business, we must respect, care, and be kind a country or As the ancient Chinese said, “to govern

Travel Urban heat The “Three Supply and Smart municipal services supply services One Property” services services

From the first Ice Lantern Festival in In 2019, BBEG’s total heat supply BG Property Management has signed BGSC’s Yizhuang data center was (cards) in total, including 4.92 million 1978 to the 33rd in 2019, Beijing area was expanded by 2 million m² to a total of 425 formal agreements officially put into operation in 2019. By residence permits and 5.558 million Longqing Gorge has received more 43.88 million m², ranking the second regarding the separation and transfer launching the “Xueliang Project”, the cards. Moreover, the establishment of than 8.7 million tourists from China and in Beijing. Now, users can enjoy BBEG’s of the functions of water supply, Comprehensive Grid Command Center the public service management platform foreign countries. The Longqing Gorge heat supply service at home via the electric power supply, heat supply of Yizhuang has greatly improved its for personnel archives is being promoted Cup Chinese Culture Competition has “heat steward” service. and real estate management from capacity for city management and nationwide through the “Internet Plus been successfully held for 15 consecutive State-owned enterprises operated by complaint handling with technological Archives” model. BGSC has expanded years, which has greatly promoted Central Government agencies totaly, means. In addition, the “Yizhuang the application of social security big cultural exchanges between China and of which the total area of separated experience” is also being replicated in data, and has developed the MIS South Korea. and transferred property management Fangshan and Daxing districts of Beijing. monitoring system for the Four Social reached 32,598,300 square meters, The Beijing Residence Permits project Insurances System of Beijing. the total area of heat supply separation issued 10.815 million residence permits Health and Cultural and and transfer reached 5,981,600 elderly care sports services square meters, and a total of 98,300 households were involved in the Beijing Enterprises Medical and Health In 2019, FIBA and Beijing Enterprises separation and transfer of water supply Industry Group Ltd. (BEMH) develops Group opened the first-ever Basketball management. BG Property Management its brand new strategic positioning and Academy. BG also launched the FIBA has undertaken a total area of model for the “Great Health Industry Yanjing Beer Basketball Cheerleaders 22,129,700 square meters in property Ecological Chain” and the parallel Competition, and the Mini World Cup management for the “Three Supply and development of “health care” and instruction tour. In addition, Beijing One Property” service. “elderly care”. As an exemplary project BEGCL Basketball Club upheld the of elderly care in Xicheng District, the spirit of hard work in the CBA arena Taoranting project was introduced at and continued to achieve great results, the China (Beijing) International Fair for offering a wonderful sports feast for the Trade in Services, and was highly praised people of the capital. 36 by the industry. The social security monitoring system of Beijing 37 Beijing Enterprises Group Co, Ltd. Quality Life Creating and Enjoying of the Heart Deep Love: Focusing on Every Detail of the Life to Light Up Corner Smart management Smart life

BG released the White Paper on Beijing Municipal Administration Number of BMAC Cards issued Digital Design and Construction to & Communications Card Co., Ltd. unit:million facilitate the digital and intelligent (BMAC) has built a fare payment system 180 transformation of the traditional composed of the BMAC Card, NFC municipal infrastructure business. card, and QR Code for transport that 156 covers multiple means of transport

Corporate Social Responsibility Report 2019 in the entire city, providing citizens with convenient, efficient, safe and integrated transport service experience. 128 In 2019, BMAC issued 180 million Beijing Gas carried out pilot projects for 114 the pipeline network by pioneering the BMAC Cards, and allowed the QR application of the BeiDou Navigation Code to comprehensively support bus Satellite System (BDS) in municipal and subway fare payment in Beijing. Beijing engineering. It became the first to In addition, BMAC became the first in 2016 2017 2018 2019 establish the technical standards for Gas the country to pioneer the reform of the short message communication service based on the BDS, and created the charge for the first use of the NFC the communication and disaster card, thus making Beijing the first city in Smart education Smart transport recovery system for important stations. China to completely cancel the charge, These efforts have promoted the deep and laying a solid foundation for the integration of the natural gas industry BGSC actively promotes smart education, BMEDI integrates the concepts of BIIC Incubator entered the list of high-quality development of the BMAC and the Beidou system. incubators of the China Overseas Talent and has launched platforms and smart traffic in the creation of the Cards system in the Beijing-Tianjin-Hebei BIIC Pioneer Park Alliance, and was awarded products for the comprehensive quality demonstration project for optimizing the region and even the whole country. the title of “Excellent (A-class) State- evaluation of primary and secondary traffic in the northwest CBD in Beijing. Level Technology Business Incubator”. school students, the senior high school By the application of engineering BG Nowadays, people can enjoy convenient entrance examinations and the National techniques, such intelligent transport transport services with the Beijing- College Entrance Examinations, and technological systems as the off-site Tianjin-Hebei Transportation Card in BMEDI led the establishment of the the student status management for law enforcement system, etc. were

spirit to build quality and beautiful urban life. perfect state”, BG always values the craftsmanship to the people and all life forms, finally reach a run a business, we must respect, care, and be kind a country or As the ancient Chinese said, “to govern the region and 275 prefecture-level BIM Research and Application Center primary and secondary schools in Beijing, established throughout the entire area, cities across the country. The innovative of the Beijing Urban Planning Society, Shanghai, Tianjin, Shandong, and enabling the improvement of the road BMEDI mobile APP of BMAC Cards allows and facilitated the establishment of Guizhou. The company completed the network structure and the optimization the BeiDou Navigation Application people to experience the smart life comprehensive networking cable project of regional traffic. Technology Innovation Center. where they can “travel the whole in the primary school department of the country with just one mobile phone”, “Beijing School”, a supporting project and it has also become the best example at the capital’s sub-center, and actively BEWG launched the pilot project on of implementing the work instructions participated in the Phase-1 construction smart water management. The No. 2 for launching the BMAC Card across the Waterworks in Zhengzhou National of the school’s smart campus. BGSC also whole country. BEWG High & New Technology Industries finished the construction of the smart Development Zone provided a good campus of the Yuxin School in 2019. example for the whole industry by becoming the first in China to adopt the BIM full-lifecycle management model. developing the “super brain” Building a smart Xiongan by In 2019, the “Digital Xiongan composed of 9 modules. It involves a Construction Management Platform” comprehensive digital management developed by BEGCDC, one of system that brings together all BG’s subsidiaries, passed the initial constructors, and is able to record all acceptance testing by China Xiongan construction data of projects, create Group. In order to lead and facilitate the digital twins and develop smart construction of a smart Xiongan with management of digital space, thereby comprehensive reform and innovation, promoting the stable and orderly the platform provides the Xiongan development of the digital Xiongan New Area with the all-round perceived New Area. The platform is expected to control and full life cycle construction meet the large-scale construction needs management, so as to ultimately build in the new area after being launched, a comprehensive paperless collaborative and users can follow and manage construction management system. The project construction in real time through platform, which was developed based apps on the computer or mobile phone. on BIM + GIS, is divided into a three- In the future, the platform is expected

Case level management structure (group to have 100,000 users. level, regional level, and project level)

38 Virtual BMAC Cards Enjoy convenient public transport with only one card 39 Beijing Enterprises Group Co, Ltd. Life for Employees Creating a Better of the Heart Deep Love: Focusing on Every Detail of the Life to Light Up Corner Employee rights Employee and interests development

BG strictly abides by laws and considers every employee as an integral BG continuously promotes the rotation

regulations, and is committed to equal part of the Group, and actively makes of key positions to boost communication and education for integration between industry BEWG Academy adopts new model There is a growing shortage of development, cultural inheritance,

Corporate Social Responsibility Report 2019 employment. The Group signs labor factory affairs more transparent and its among employees and strengthen the skilled technical personnel with changes and reforms, and the contracts with all employees according corporate governance more democratic. cultivation of interdisciplinary talents. the rapid development of the industrial ecosystem, the Academy to the law, and actively develops the In 2019, the Group recruited 12,590 new The Group attaches great importance environmental industry. Therefore, not only meets the needs of BEWG remuneration and welfare system. employees, and arranged social insurance to the intellectual property rights of BEWG established the BEWG in the process of transformation and Academy in 2017, which has development, but also cultivates The Group regularly arranges medical as well as old-age pension, medical employees, vigorously advances the developed a teaching model interdisciplinary technical talents check-ups for new employees every insurance, unemployment insurance, selection and cultivation of technical featuring the integration of online specializing in the water industry for year, and has organized a total of 9,219 workers’ compensation, maternity leaders and professionals, and keeps and offline education, and also the entire environmental industry. In occupational health training sessions insurance, and housing provident fund expanding the two-way career launched a number of successful 2019, BEWG Academy was awarded training programs, including the the “Best Growing Corporate to ensure their occupational health. BG schemes for all employees. development channels for employees one for senior managers in China’s University” in the China’s Corporate and the scale of talent training. In environmental industry, and the University Rankings. 2019, the Group invested more than “Cyber College”. Focusing on talent Employee satisfaction of BIIC 97.1% RMB 49.86 million in staff training. All training programs in 2019 totaled 2.64 96.8% million hours with 450,000 participants.

BG program apprenticeship New corporate As one of the state-level key short supply during the transformation 96.1% senior technical schools, Beijing and upgrading of enterprises, thereby Instrumentation Senior Technical contributing to the progress of School, which is affiliated to BIIC, enterprises and society. is committed to cultivating highly every employee. the fruits of Group’s development with each and BG relies on employees wholeheartedly, and shares skilled technical workers for the development of the capital. The school takes the opportunity of implementing the “new corporate 2017 2018 2019 apprenticeship program” as an Case opportunity to innovate in its talent Scan the QR code to training model and cultivate talents in read more information

Employee care

BG always puts employees first, opposes activities to enrich employees’ lives. In forced labor, and values the work- addition, BG’s Sunshine Fund brings life balance of employees. The Group warmth of the Group to employees by actively nurtures a “family” culture by providing them assistance. In 2019, the setting up the “BG ♥ Home” platform, Fund paid visits to 310 employees and and extensively organizing mental health offered over RMB 1.64 million of funds lectures, sports competitions and cultural to needy employees. Dances with stress Taking the fact that employees were Psychology from Tsinghua University faced with the pressure of extremely to give mental health lectures entitled tight schedules and significant “Dances with Stress” and “Productive tasks into consideration, the joint Work and Happy Life” to alleviate the labor union of the core area of the psychological burden of builders of the Yanqing Competition Zone of the Competition Zone of Winter Olympics Winter Olympics 2022 invited Zhao 2022 in Beijing. The activities made Hongmei, a counseling psychologist employees work efficiently, body and from the Institute of Psychology of mind healthy and live happily.

Case the Chinese Academy of Sciences, and Li Shengqiang, a Doctor of

40 Blessings for the Chinese New Year from members of the labor union of BG 41 Beijing Enterprises Group Co, Ltd. with Partners Win-Win Development of the Heart Deep Love: Focusing on Every Detail of the Life to Light Up Corner Regional cooperation

Communication Building among Beijing, Hong Development of the Energy sector Corporate Social Responsibility Report 2019 partnerships Kong and Taiwan Belt and Road In Europe, BG acquired EEW, a world- The Group actively carries out research Beijing Holding Limited (BHL) keeps BG actively responds to the Belt and class energy-from-waste company, and on collaborative business management strengthening its role as a “link Road Initiative. The Group embraces has made it a demonstration project for based on its strategic positioning and company” and a “window company” in out-of-the-box thinking and the world, Sino-German cooperation. Centering its expertise in business coordination, Hong Kong, and has further improved and “goes global” to bring Chinese around Luxembourg and Germany, technology, operation, and management the integrated service platform for wisdom, solutions, and warmth to the the Group has established the energy- of municipal infrastructure development. normalized two-way investment by people of countries and regions along from-waste business development It has signed strategic cooperation companies from Beijing. The company the Belt and Road. platform and the overseas investment agreements with Xiongan New Area worked closely with partners from platform with enhanced cross-border and Haikou, while facilitating the Beijing, Hong Kong and Shenzhen in management. Following its successes development of its business sectors holding the 1st Beijing-Hong Kong- in Bangladesh and Cambodia, BBEG in key regions such as the Beijing- Shenzhen Innovation and Development launched the construction of a natural EEW’s factory area Tianjin-Hebei region, the Yangtze River Forum and the 2nd “Beijing Hong gas station in Sri Lanka. Economic Belt, the Yangtze River Delta Kong Youth Entrepreneurship Cup” Urban Agglomeration, the Guangdong- Entrepreneurship Competition to BG Hong Kong-Macao Greater Bay Area, support young people in their pursuit and the Hainan Free Trade Zone. In of innovation and successful business. addition, the Group focuses on the Furthermore, BHL provides better Municipal engineering

cooperation, and better development prospects. the Group has seen more partners, higher quality of achieve win-win progress through cooperation. Therefore, BG vigorously seizes the opportunities of era to implementation of 21 demonstration services for Mainland-funded institutions projects outside Beijing, and has further in Taiwan, thereby contributing to Focusing on countries along the Belt expanded the “BG +” platform by the economic, trade, cultural and and Road, BMEDI vigorously advances embarking on strategic cooperation technological exchanges between its projects in countries such as with the industry leader companies, Beijing and Taiwan. Niger, Nepal, Tajikistan, Malaysia and such as CTGC, CEEC, CREG and Huawei Pakistan,etc. The Sino-Cambodian to draw on each company’s strengths Phnom Penh Special Economic Zone and achieve win-win development. Project is dedicated to creating a comprehensive industrial platform for Chinese companies to “go global”. In addition, BEWGs overseas business is

now serving seven countries. the Siem Reap Angkor International Airport project

Service

Beijing Restaurant in Havana, Cuba, which opened in August 2019, is the first wholly foreign-owned project and also the first project wholly owned by a Chinese company, was selected into the “The sailor: a case set of overseas image construction of Chinese Enterprises”. The Bellomonte residential resort in Cuba invested and developed by BERE has become the largest tourism project

invested by a Chinese company in the The grand opening of Beijing island country. Restaurant in Havana

42 The 5th Hong Kong University Student Innovation and Entrepreneurship Competition 43 Beijing Enterprises Group Co, Ltd. with Partners Win-Win Development of the Heart Deep Love: Focusing on Every Detail of the Life to Light Up Corner Responsible chains

Transparent Quality Common development procurement services of industries Corporate Social Responsibility Report 2019

Adhering to honest operations and procurement”, BG prioritizes green As an advocate for sustainable related knowledge. Apart from that, To build a multi-win multilateral fair competition and transactions, products that meet related national consumption, BG has improved product BG has properly protected customer cooperation platform, BG participated BG actively improves the everyday standards while purchasing office and service quality management information, strengthened after-sales in the 2019 China International management of suppliers. In addition, supplies. In the process of purchasing systems continuously and earnestly service, and made improvements Fair for Trade in Services, UNDP through thorough reviews and materials for engineering projects, we enhanced the publicity of products and according to customer complaints. Hydrogen Industry Conference 2019, assessments of suppliers’ qualifications, apply advanced environmental and Gas & Heating China 2019, China we ensure fair transactions and equal energy-saving techniques and products, Investment Conference and other rights and interests for all suppliers,and and use environmentally friendly international events. Emphasizing the optimization of the business environment and handling complaints immediately, commit to building a responsible supply building materials, striving to create a Beijing Gas has established an early warning mechanism for active governance. In the past year, chain. To further strengthen “green green supply chain. the online evaluation of the company’s 96777 hotline showed a satisfaction rate of 97.46%, Beijing Gas participated in the and its window service scored 87.92. Besides, Beijing Gas was ranked among the best in the formulation of multiple industry evaluation of the business climate in China carried out by the State Council. standards. Through collaboration with the Instrumentation Technology and Beijing Gas optimized the supply and marketing ecosystem, formulated Economy Institute, P.R. China, Beijing management systems for supplier management and product sales, and BBEG actively promoted the “heating steward” mechanism and “handling problems before determined four product suppliers and two service suppliers. complaints” concept, and set up the position of “heating service supervisor” for heat users, Gas passed the application of MIIT’s which effectively lowered the customer complaint rate. project of “Secondary Node of Industrial BG Beijing Gas Internet ID Resolution”, and formed a national standard for the service BIIC guaranteed a complaint handling rate of 100% for three consecutive years and a customer platform of the industrial Internet cooperation, and better development prospects. the Group has seen more partners, higher quality of achieve win-win progress through cooperation. Therefore, BG vigorously seizes the opportunities of era to BIIC optimized supply chain management, conducted satisfaction rate of 98%. analyses of suppliers’ quality data, and formulated quality instrumentation industry, contributing requirements and specifications for suppliers, which ensured positively to the industry’s progress that all original devices and raw materials were up to related The total number of calls received on smart city issues was million, and of the product quality requirements. 4.09 89.7% calls were answered. Calls that made threats were all handled properly, contributing positively to Yanjing Beer participated in the BIIC the resolution of social conflicts and maintaining social harmony and stability. revision of nine group standards, including the Beer Terminology and Classification, White Beer, and Non- The BMAC Cards customer service hotline was integrated into the 12345 citizen service hotline in BEEI gradually established a resource database of material suppliers and alcoholic Beer, which provided support formulated material management regulations including the Material 2019, through which we realized 100% handling of customer complaints at the fastest speed for further standardization of the beer Purchase Management Regulations for EPC Contractors. and guaranteed a high customer satisfaction rate. industry of China. BEEI

Through the development of supplier systems and dynamic management methods, BEWG promoted healthy competition and development of suppliers. In 2019, BEWG reviewed 54 faster speed Providing services at a suppliers and conducted 100 supplier training sessions. In 2019, Beijing Gas regarded the department will complete “improving service quality” as the preliminary communication with the BEWG focus of work throughout the year, user within one hour to understand and comprehensively coordinated the user’s accurate demand. Emergent According to the procurement system, Kaibin Hotel firmly carries out fair and promoted the improvement of situations are handled within one hour, bidding, price comparisons, and detailed background checks when choosing service quality. general appeals are handled within 24 suppliers. All approved suppliers are required to sign the Responsibility Letter hours, complex problems are solved on Honest Administration of Procurement Projects to standardize business within three days, and special appeals activities and prevent violations of laws and regulations. Once receiving a complaint reported are handled within five days with the by citizens through the Beijing Gas’ approval of users. Kaibin Hotel 96777 service hotline, Beijing Gas will convey the information to the Case grassroots department within 10 Beijing Gas 96777 hotline helps improve the Beijing Enterprises City Development Co., Ltd. (BECD) has minutes. After getting the assignment, living standards of citizens. compiled the Supplier Management Measures, based on which it conducts supplier performance evaluations and maintains the supplier information database annually.

BECD

44 45 Beijing Enterprises Group Co, Ltd. Undertakings Public Welfare of the Heart Deep Love: Focusing on Every Detail of the Life to Light Up Corner Volunteer activities

Adhering to the volunteer spirit of “dedication, friendship, mutual assistance and

progress”, BG has constantly improved mechanisms of public welfare activities, and Fighting the COVID-19 with concerted efforts at the front line Faced with the COVID-19 pandemic acted immediately to resume work and the COVID-19 Pandemic Together”,

Corporate Social Responsibility Report 2019 guided all employees to take an active part in various volunteer service activities, such that broke out in late 2019, BG production, and the large numbers BG and its subsidiaries and charity as the “Learn from Lei Feng” campaign, volunteer teaching activities, etc. In 2019, we promptly established a leading group of employees of BG contributed to foundations made in-kind donations invested a total of RMB 50.14 million in public welfare, and 40,345 employee volunteers for pandemic prevention and control pandemic containment and provided worth around RMB 41.5 million to key provided a total of 26,353 hours of volunteer service. led by major leaders of the Group, services earnestly at the front line. medical institutions, which included organized a special work group for Through actively participating in medical supplies, drinking water, and pandemic prevention and control, and pandemic control activities, such as the disinfection products. formulated a special work plan. We “Women in Beijing and Wuhan fight

Undertake the responsibility to BG Keep promoting major projects Fight COVID-19 at the front line protect the capital

The builders and operation team of Being highly responsible, BG mobilized BG spared no effort to guarantee a the Winter Olympics 2022 from BG subsidiaries in the gas, water, solid stable and orderly life for citizens of moderately prosperous society in all respects. aspiration to serve the people, contributing construction of a through practical actions and makes great efforts to fulfill the original strong will. BG contributes to the creation of a harmonious society Actions originate from a strong mind, and strengths come from a stuck to their posts and carried out waste, sanitation, property, and other Beijing during the special periods. Beijing pandemic prevention and construction sectors related to people’s livelihood Gas guaranteed gas supply for all the 82 simultaneously. within Hubei Province to provide fever clinics and hospitals, and helped services for the frontline of pandemic near 6000 users solve problems through We continued the construction of prevention and control. Within four the 96777 hotline. BBEG developed the National Sliding Centre during days, China Gas completed the special heat supply plans for hospitals the Spring Festival. Even though the installation of all facilities needed and spared 10,000 tons of LNG reserve external ammonia refrigeration experts for supplying gas for the Wuxue for 24-hour emergency use. BGI could not get to the construction site, “Xiaotangshan Hospital”, fought day completed the engineering consultancy we coordinated remote commissioning and night to provide emergency gas for the renovation and expansion of and ensured the progress of the ice- supply to the isolated hospital, and Xiaotangshan Hospital in solely 96 Mingxi Volunteer Team organizes visits to the elderly in the community. making project. completed the gas heating project of hours. Beijing Enterprises Smart City the hospital within 50 hours. BEWG’s Technology Co., Ltd. (BGSC) provided Overcoming all difficulties, BG’s branches in central China guaranteed services for the National Education alpine skiing project team completed safe water supplies for the whole Public Resource Service Platform and the 600m ice ribbon and conducted Hubei Province. Employees of the supported online learning of primary Charity foundation Public welfare activities research on the ribbon based on Guodingshan Waste Incineration Plant and middle school students nationwide. collected data. in Hanyang District, Wuhan affiliated During the period when vehicles were to BEHET stayed on call 24 hours a exempted from toll fees, Beijing Daxing Mingxi Charity Foundation Association, BG conducts public welfare activities day to ensure prioritized treatment International Airport Expressway under the guidance of the governments through various channels based on the of medical waste generated during adopted the principle of “three nos and of Beijing and Hong Kong and with Group’s advantages. pandemic prevention and control. one priority” (no halt, no check, no toll, the support from all sectors of society, Beijing Bodian Optical Tech. Co., and prioritized passage) for vehicles Ltd. (Bodian Optical) had resumed carrying emergency supplies and cooperates closely with domestic and production before the end of the medical personnel, and ensured more Yanjing Beer, together with the Chinese FA overseas institutions that hold the Spring Festival holiday to produce efficient transportation of pandemic Cup, has organized the “Seed Program” banner of love for the motherland and filters needed in the production of prevention materials. for six consecutive years, through which novel coronavirus test kits. Local devotion to Hong Kong. Starting from the Group donated 42,700 footballs for employees in Beijing of Bodian Optical cross-regional exchanges of young 2,080 primary and high schools. produced more than 8,000 filters after students, the foundation strives to 24 hours of uninterrupted production. enhance Hong Kong young people’s Beijing BEGCL Basketball Club cooperated with China Administration of Sports recognition of the national, ethnic, and for People with Disabilities and Beijing traditional cultures. Jianxiang School for multiple times, which created opportunities for special groups to demonstrate their basketball skills on Mingxi Workshop professional basketball courts

Mingxi Youth Reward Program BERE continued to participate in the Greater Walker Fund-raising Trekking Event, in which employees walked for Mingxi Charity Foundation 1,400 kilometers accumulatively and raised Association organized the Beijing- funds for the China Foundation for Poverty Hong Kong Leadership Camp for Alleviation. Young Students Employees Bodian Optical work overtime to Case produce filters needed in the production of novel Beijing Gas guarantees gas supply for coronavirus test kits. Xiaotangshan Hospital, Beijing The Belt and Road Youth Study 46 Plan, and so on. 47 Beijing Enterprises Group Co, Ltd. Undertakings Public Welfare of the Heart Deep Love: Focusing on Every Detail of the Life to Light Up Corner Open Community communication development

BG actively broadens communication channels. Focusing on the theme of the Beijing Communities are the cells of the city. BG diagnoses the “diseases” of communities efficiently and contributes to the construction of a SOE Open Day, BG introduced to the public Yizhuang Gas Service Center, Beijing better city. BMEDI served the improvement of urban infrastructure, roads and bridges, back streets and lanes, as well as old communities

Corporate Social Responsibility Report 2019 Instrumentation Senior Technical School, Beijing Beiran Liquefied Petroleum Gas Co., in Haidian District, promoted the implementation of regional special action plans, such as the Three-year Action Plan for Optimizing and Ltd., and Beijing Yanqi Lake International Convention & Exhibition Center, enabling Upgrading Public Services and Infrastructure in Huilongguan-Tiantongyuan Area (Huitian Plan), and effectively improved the environment stakeholders to feel BG’s development and advances. for regional development.

BIIC opened the Beijing BERE organized families to Instrumentation Senior Building a happy homeland through the implementation of “Huitian Plan” visit venues of APEC and Technical School to visitors Since the launch of the Three-year Action Plan for Optimizing and Upgrading Public Services and Infrastructure in Huilongguan- BG The Belt and Road Forum for to allow them to get close to Tiantongyuan Area (Huitian Plan) , BG has actively participated in the construction of public service facilities and major infrastructure International Cooperation modern vocational education projects in the "Hui-Tian" area, effectively improving public services for the communities and people’s livelihoods. at Beijing Yanqi Lake and feel the craftsmanship International Convention & of technicians.

moderately prosperous society in all respects. aspiration to serve the people, contributing construction of a through practical actions and makes great efforts to fulfill the original strong will. BG contributes to the creation of a harmonious society Actions originate from a strong mind, and strengths come from a Exhibition Center affiliated to BERE to appreciate the charisma of a strong nation.

BG has almost realized full coverage Beijing opened the first special bicycle To abandon outdoor bus stops, BG has of gas supply, and comprehensively track, which shortens the commuting launched the brand-new Tiantongyuan enhanced the capability of supplying time by bike from Huilongguan to North Transport Hub. The BMEDI- gas and provided quality services. Shangdi to 26 minutes. Designed by designed Tiantongyuan North Transport Focusing on users’ demand for safe and BMEDI, the bicycle track is for the first Hub is the first of its kind in Beijing sufficient gas, Beijing Gas has piped time equipped with world advanced capable of providing indoor bus stops. natural gas to 207,000 households booster devices at the entrances and This new transport hub incorporates from 145 communities of Huilongguan exits of the track. Solar lamps along various transport facilities, such as bus and Tiantongyuan area. Through the the track with super capacitors are stops, coach stations, P+R parking lots replacement of 56,695 old facilities, embedded in the lower part of the and waiting areas for taxes. With a inspections of 915 km of pipelines for handrails, enabling low-light charge and total area of 90,000 m2, the transport leaking points, and the installation zero heavy metal pollution. A number of hub is equipped with an intelligent of 26,317 safety warning signs, BG advanced designs have brought much command and control center and eliminated 635 safety hazards. convenience to people’s lives. passenger-oriented waiting areas, effectively relieving traffic congestion.

Visitors experienced the self- service payment machine at Yizhuang Gas Service Center and learned about the high- quality and convenient Visitors visited the services of Beijing Gas APP. production line of the filling plant of Beijing The 28th Beijing Yanjing Beiran Liquefied Petroleum Beer International Festival Gas Co., Ltd. , exploring was launched at the Olympic a new mode of liquefied Rowing-Canoeing Park, gas development, and Shunyi District, to enrich experiencing the new image people’s life. of the company.

Case The new Tiantongyuan North Transport Hub designed by BMEDI helps to improve the public services for the communities

48 49 Coping with Changes Through Proper Governance and Achieving Greater Development 51 G COPING WITH CHANGES Through Proper Governance Proper Through and Achieving Greater Development Coping with changes through proper proper Coping with changes through greater achieve can we and governance, development, corporate During development. of BG has closely followed the trends the times and the path of high-quality development. By implementing scientific Plan period, plans during the 14th Five-year development the promoted actively has BG of new undertakings. 52 53 54 56 Healthy and Sustainable Development Regulating Information Disclosure Enhancing Risk Management Practicing CSR Management

Corporate Social Responsibility Report 2019

Beijing Enterprises Group Co, Ltd. 50 Beijing Enterprises Group Co, Ltd. system, and comprehensivelygovernance deepened the reform. BG has continued to improve enterprise management system and the corporate the modern Healthy and Sustainable Development won the 2019 Enterprises with Outstanding Performance in Disclosure of Sustainability Information. Group, protects such efforts, BG earnestly investors’ right to know and other rights interests. BG With Through standardized and transparent disclosure of information related to the business development of Regulating Information Disclosure Coping with Changes Through Proper and Achieving Greater Governance Development Corporate Law-based corporate Compliance Broadening governance governance disclosure communication channels

BG has continued to improve the To further promote law-based corporate Strictly following regulations and Strictly abide by the Articles of corporate governance system and governance, BG accelerated the requirements related to information Association, Stock Listing Rules, and enhanced operating efficiency. By establishment of a general counsel disclosure and adhering to the principle other regulations, BG’s subordinate

Corporate Social Responsibility Report 2019 clarifying the division of responsibilities system. Besides, the Group carried of “authentic, accurate, complete, listed companies have standardized the and functions among the Party out the trial implementation of the timely, fair, and open information operation of the general meeting of group, Board of Directors, and the general legal advisor reporting and disclosure”, BG actively summarizes the shareholders, the Board of Directors, and management, straightening out the appraising mechanism, strengthened Group’s information disclosure lists and the Board of Supervisors. By strengthening relationship between Party leadership the legal review of major business records of key issues and ensures timely, roadshows on performance, participating and corporate governance, and strictly projects, formulated work plans on complete, and accurate information in investment summits, and so on, we following regulations on the nomination compliance management, and launched disclosure, thus protecting the right carry out communication with investors and selection of candidates for the the establishment of a compliance to know as well as other rights and positively to ensure small and medium highest governance body and its special management system for the Group. interests of shareholders, investors, investors’ participation in the decision- committees, we strive to give full play and the public. In 2019, BEWG won 20 making process. In addition, through to the active role of special committees honors in the All-Asia Executive Team announcements at the exchanges, to form an efficient and orderly selection carried out by the Institutional interactive platforms, investor receptions, governance system. Investor magazine, including the Most exchanges through the phone or Honored Company, the first place of investors’ emails, we strive to strengthen the (Small And Midcap Stocks) Hong communication with investors. In Kong Market, Best CEO, Best CFO, Best 2019, BEHL received investors from the Corporate IRO, etc. Chinese mainland and overseas regions, reform organized 60 one-on-one meetings and group discussions, and interviewed 110 institutional investors.

In 2019, BG continued to strengthen the leading role of corporate strategies, comprehensively deepened the reform, and steadily improved the operating performance of the Group. We increased our total profits by 20.7% and total assets by 12.5% year on year, making BG great achievements in our reform and development. BG To reduce the number of unqualified subsidiaries, we dissolved 57 enterprises in 2019, over accomplishing the goal three years in advance. Through special rectification of problems in corporate governance, we comprehensively sorted out the basic situation of enterprises in the red, and promoted rectification of problems in an orderly manner.

In 2019, we completed the separation and handover of all non-operating assets. BBEG completed the handover of 430,000 m² of non-operating assets and the actual management of 7,000 households, and BIIC completed the handover of 340,000 m² of non- operating assets

BG made significant progress in promoting the management of retirees

52 in a standardized and orderly manner. BG Jiao’ao Center 53 Beijing Enterprises Group Co, Ltd. direct division to resolutely and potent governance nip all hazards in the bud. Upholding prudence, scientific mettle, and emphasis on details, BG designates the most Enhancing Risk Management Coping with Changes Through Proper and Achieving Greater Governance Development Internal control Work of risks safety

By continuously constructing and promoted the full coverage of audit Safety management Security Safety education improving internal control systems, supervision, strengthened the review,

Corporate Social Responsibility Report 2019 BG strives to enhance corporate filing, and post-evaluation of investment The Group firmly upholds safe BG has continuously strengthened Safety education and training is the first governance and the prevention and projects, and guaranteed 100% development and adheres to the work on-site supervision and inspection, step we should take to guarantee work control of risks. Through fully promoting fulfillment of economic contracts. BEGF safety policy of “safety first, prevention and deepened the investigation and safety. BG attaches great importance to information-based operations and vigorously promoted cash concentration, foremost, and comprehensive management of hazards. In 2019, we enhance employees’ safety awareness. establishing a corporate governance and reduced RMB 41.8 million of costs governance”, endeavoring to build a conducted more than 260,000 safety We have actively strengthened safety platform supported by informatization through efficiency improvement. As of “safe BG”. In 2019, the Group officially inspections at various levels, eliminated training and exchanges on safety issues, technology, we have enhanced the the end of 2019, BG’s debt to asset ratio put the safety and environmental 32,931 hazards, and successfully and our work safety training sessions headquarters’ strategic, financial, was 69%. protection supervision and management completed our security tasks in the were signed up for 158,000 times. and risk management and control information system into use, which Second Belt and Road Forum for Beijing Gas published a safety culture capabilities. With clear focuses, we guaranteed real-time and more efficient International Cooperation, celebration manual, conscientiously promoted coal- management. Throughout the year, BG activities for the 70th anniversary of to-gas projects in rural areas, and took invested RMB 1.34 billion in bolstering the founding of the People’s Republic part in the “6.16 Safety Publicity and the security of the Group, and no of China, the New Year’s Day and the Consultation Day” activity for the third Clean governance work safety accidents or casualties Spring Festival, the Two Sessions, and consecutive year. and self-discipline occurred. Beijing Gas is among the first other major festivals and holidays, enterprises of the industry to obtain the and guaranteed safe implementation certification of the upgraded version of key construction projects such as of ISO 45001 occupational health and the Yanqing competition zone of the safety management system. Winter Olympics.

BG Ensuring security of major events With a strong sense of responsibility, On the National Day, a total of 100 of BG’s employees, we guaranteed the BG issued the “Risk Prevention, Safety employees of the Group joined two successful completion of the parade Assuring, Celebration of the 70th phalanxes of the parade and accepted and provided strong support for the Anniversary” Safety and Environmental the review of President Xi Jinping. celebration activities, saluting to the 70th Protection Special Action Work Plan, Through the efforts of thousands founding anniversary of the RPC. and carried out a series of safety inspections to effectively guarantee the security during the celebration of the 70th founding anniversary of the People’s Republic of China. Beijing Gas carried out thorough checks, renovation, maintenance, and treatment of emergencies of gas Leaders of BG relearn the Party admission oath at the Red Education Base in the Red Building, Peking University. supply facilities, and guaranteed stable gas supply. BMEDI formulated a special plan and successfully completed the task of keeping in good condition of BG has launched a campaign on the Plan for Carrying Out the 2019 the transport facilities along the route of the parade. BIIC carried out full- the theme of “staying true to our Annual Inspection and the Key Points of range tests and drills, completed the founding mission” and comprehensively Disciplinary Inspection and Supervision task of inflating the red lanterns in strengthened Party discipline and in 2019, aiming to transform the the Tiananmen Square, and delivered leadership. By giving full play to the advantages of Party building and a satisfactory answer with practical leading role of the Party committee, improved Party conduct and government actions to the people. BG unites the mass of Party members integrity into the driving force for better to build up a clean BG. Besides, we corporate governance, and promote warn and educate employees regularly high-quality development of the Group about the seriousness of corrupt with high-quality Party building and Case behaviors, continuing to promote the improvement of Party conduct and Scan the QR code to BIIC successfully lights up the red lanterns for the the anti-corruption efforts of BG. The government integrity. get more information National Day celebration event. Group has issued such systems as

54 55

Beijing Enterprises Group Co, Ltd. development of the Group. BG continues to deepen responsibility management and fulfill responsibilities. A well-functioning responsibility management system provides robust support for the operations and Practicing CSR Management Coping with Changes Through Proper and Achieving Greater Governance Development ESG Analysis of material topics CSR training governance To respond to the concerns of core topics of the year that efficiently Strengthening the construction of stakeholders effectively, BG has demonstrate the Group’s contributions the CSR team is one of the important collected CSR topics through field to economic development, social approaches for BG to promote the deep BG attaches great importance to BG discloses of environmental, social, surveys, interviews, questionnaire progress, and environmental integration of CSR with management. In improving corporate ESG governance and corporate governance information surveys, and other methods. Through protection, thus responding to the 2019, the Group further strengthened and strictly abides by ESG-related in detail, and has established an ESG

Corporate Social Responsibility Report 2019 the identification and analysis of concerns of stakeholders. internal and external CSR training, requirements stipulated in the Stock management system to guide the collected topics, we have identified and invited experts from the Chinese Exchange of Hong Kong Listing Rules. disclosure of authentic information on Academy of Social Sciences (CSAA) to BG’s subsidiaries, including BEHL, BEWG, general issues and environmental KPI conduct training on the “Development China Gas, Yanjing Beer, and so on, indicators, thus effectively responding to 01 Developing environmentally 10 Strengthening Party building, 19 Honest operation and fair friendly industries combating corruption and competition and Status Quo of ESG Investment have all released ESG reports. According the concerns of the capital market over upholding integrity and ESG Information Disclosure”, to the importance, quantification, ESG issues. 02 Serving the development of 11 Work safety 20 Responsible supply chain Beijing which further strengthened employees’ balance, and consistency of information, 03 Poverty alleviation 12 Public welfare activities 21 Coping with climate change awareness of ESG. BG also selected and sent six second-level CSR managers to 04 Providing clean energy 13 Responding to government 22 strategies Building smart cities participate in the “Chief Responsibility 05 Maintenance and appreciation 14 Strengthening social 23 Technological innovation Officer” training session organized of State-owned assets responsibility management Supporting “mass by CASS, which effectively expanded CSR 06 Driving local economic 15 Improving customer service 24 entrepreneurship and employees’ horizons and strengthened development innovation” management capacity building. 07 16 Protecting employees’ rights 25 Protecting customer privacy Product quality and safety and interests Strengthening capital Promoting rational 08 Deepening the reform of SOEs 17 operation 26 consumption

Energy conservation and To fulfill the mission of “For a Better Through the compilation of CSR reports 09 Employee career development 18 emission reduction Life”, BG has continuously improved and conducting CSR practices, we the CSR indicator system and included integrate CSR management into the related indicators into the appraisal overall planning and daily operations Importance to stakeholders of enterprises directly affiliated to the of BG. We have determined the BG Group to encourage enterprises to organizational structure, targets, enhance their CSR performance. By measures, and priorities during the improving the Social Responsibility improvement of social responsibility Development Plan (2016 - 2020) work, set up the CSR Leader Team continuously, we strive to create and Working Team led by BG’s major 02 an atmosphere that encourages leaders and a working team composed 10 05 01 all enterprises to fulfill their social of members of the Research Office and 14 responsibility and strengthen their the Publicity Department of the Party 16 06 responsibility fulfillment ability. Through Committee to take charge the overall 07 03 this, we aim to realize the sustainable CSR work, thus continuously improving 08 development of the environment, the Group’s CSR performance and 11 society, and corporate governance. management. 09 18 04 12

17 13 BG CSR Organizational BG Board of Directors 22 Structure 20 15 23 BG General Manager’s Office 25 21

BG CSR Leader Team 24 19 26

CSR Working Team of BG CSR Working Team of affiliated enterprises

Publicity CSR Department/personnel Research Office Department of the (full-time or part-time) Party Committee Importance to business operations

56 57 Beijing Enterprises Group Co, Ltd. development of the Group. BG continues to deepen responsibility management and fulfill responsibilities. A well-functioning responsibility management system provides robust support for the operations and Practicing CSR Management Coping with Changes Through Proper and Achieving Greater Governance Development CSR communication Honors and Awards BG takes the compilation and release of CSR reports as an opportunity to carry out various internal and external CSR communication activities. The Group releases updates on CSR performance on the official website and official Weibo account of BG, and spreads CSR concepts and practices among stakeholders through BG’s internal newspaper, internal training, meetings, and other channels. We also hold symposiums The Group’s contributions to social and environmental progress, as well as the awards and honors for its excellent performance in CSR with stakeholders to strengthen our communication with stakeholders. have made BG more determined in its mission of “For a Better Life”. Corporate Social Responsibility Report 2019

Stakeholders Expectations and Communications and demands responses BG was presented with the CSR Model Award by the Boosting profitability and core Practically implementing policies for organizing committee of the “Yicai The Corporate competitiveness SOEs Social Responsibility Ranking in China”. Ensuring the maintenance and Improving information disclosure Shareholders appreciation of state-owned assets Strictly auditing capital investment Gaining satisfactory investment Maintaining sound operations returns Improving the system of the Board of Promoting the reform of SOEs Directors BG won the “China Four-Star Corporate Citizenship 2019”.

Abiding by laws and regulations, Establishing a cooperation combating corruption and mechanism among governments upholding integrity Carrying out compliance BG was presented with the Responsible Golden Bull Awards • Environmental Creating jobs Governments management Paying taxes according to the law Protection Award” at the China Social Responsibility 100 Forum. Steadily increasing taxes Promoting sustainable economic Expanding diversified businesses to development drive employment Fulfilling political responsibility BG won the “Green Model Award 2019” at the International China Public Welfare Program 2020. Responsible procurement Trustworthiness and integrity Anti-commercial bribery Suppliers Win-win cooperation Complying with the principle of fairness, impartiality, and openness BG entered the “Top 60 Responsible Chinese Corporate Citizen Brands 2019”. BG

Paying attention to quality BG’s excellent social responsibility practices were included in the Corporate supervision High-quality products Improving the complaint mechanism Social Responsibility Basic Textbook (2nd Edition). Customers Considerate services Strengthening technological innovation Conducting satisfaction surveys BG’s social responsibility index maintained the first place among all Signing labor contracts provincial-level state-owned enterprises, and ranked 8th in the “Top Giving full play to the role of the 100 State-owned Enterprises Management Index Ranking (2019)”. labor unions Secured rights and interests Improving the talent cultivation Employees Career development channels system Occupational health Focusing on employees’ healthy development BEWG won the Best Environmental Excellence Award Improving the remuneration system of the China ESG Golden Awards 2019.

Expanding publicity channels Media Keeping good relationships Open to visits Beijing Enterprises International Conference and NGOs Establishing good interactions Communicating with NGOs Metropolis Real-estate Co., Ltd. won the “Humane Enterprise” award.

Supporting science, education, Paying attention to community culture, and health undertakings Communities development Organizing volunteer activities Building harmonious communities Supporting public welfare

Developing new energy resources Coping with climate change Conducting sewage treatment environment Focusing on energy saving and Conducting solid waste treatment emission reduction Promoting circular economy

58 59 Appendix 61 50.14 100 1.64 8.7 204 49.86 2907 100 5.99 2640952 269.8 31.6 7.59 100 115000 10.29 100 26932 100.71 100 39.39 360.6 131184 47.2 2019 2019 2019 14.46 100 1.69 7 198 35.87 2900 100 6.42 2079851 233.6 30.4 6.04 100 115000 8.53 100 35000 92.54 100 36.82 320.4 128967 35.4 2018 2018 2018 13.75 100 1.148 6 163 47.43 2855 100 5.88 2247360 233.4 26.8 6.28 100 115000 8.03 100 27890 81.79 100 31.38 282.6 119814 34.4 2017 2017 2017 RMB million % RMB million % Item RMB million Person % RMB billion Hour/year HKD billion % RMB billion % ton/year RMB billion % ton/day RMB billion % million ton/day RMB billion Person billion m³ Unit Unit Unit Total amount of charity donations and Total sponsorship Labor union admission rate Investment in employee assistance fund Employee turnover rate New patents obtained Investment in employee training Number of R&D employees Employee training coverage Total tax payment Total Employee training time Total market value of listed subsidiaries market value of Total of female Proportion management personnel Net profits Physical examination coverage and health record capacity waste treatment Hazardous Total profits Total Labor contract signing rate capacity Solid waste treatment Revenue Social insurance coverage capacity Contracted water treatment Total assets Total employees* Total Sales volume of natural gas Indicators Indicators Indicators Note: Indicator with * contains data of China Gas. Key Performance Market Performance Social Performance Performance Environmental

Appendix BG The year 2020 will be crucial for China, as the country will finish building a moderately the country will finish building a moderately The year 2020 will be crucial for China, as the first centenary goal. It will also be a year of and realize society in all respects prosperous since it will embark on a new journey of Group, milestone significance for Beijing Enterprises of abreast keep to “look outward” to will continue we Therefore, development. corporate We will follow the guidance of to identify our own deficiencies. the times, and “look inward” thoroughly and New Era, a for Characteristics Chinese with Socialism on Thought Xi Jinping implement the guiding principles of the 4th Plenary Session of the 19th Central Committee the of Session Plenary 11th the and Conference, Work Economic Central the CPC, the of to the general principle of pursuing will adhere 12th Beijing Municipal Party Committee. We apply to continue and guidance, strategic Group’s the and stability ensuring while progress to the development of importance the new development philosophy while attaching great the “13th Five- will center around identified. We strategies to problems response effective points up shore and inadequacies, address priorities, on focus to continue and Plan”, Year structure, the optimize deepen reform, business, main BG’s on will focus We of weakness. the in goals ambitious our to achieve order In risks. governance,prevent and strengthen development plan during the “Fourteenth Group’s the develop we will meticulously future, through strategic support for BG to break strong providing Plan” period, thereby Five-Year bottlenecks and achieve high-quality development, and contributing to the moderately of national rejuvenation. Dream and the Chinese society in all respects prosperous new success in the future! BG will seize the day and live it to the fullest, and create

Outlook BG

Corporate Social Responsibility Report 2019

Beijing Enterprises Group Co, Ltd. 60 Index 63

A1,A1.3,A1.4,A1.6 A2,A2.4,A3,A3.1 A1.1,A1.2,A1.5, A2.1,A2.3 A2.2,A2.5 B6.3 B1,B1.1,B1.2,B3,B3.1, B3.2,B4,B4.1,B4.2 B5,B5.1,B5.2,B5.3,B6, B8,B8.1,B8.2 B2,B2.1,B2.2,B2.3,B7,B7.1,B7.2 ESG P1.1-P1.3 P2.1-P2.2 P4.1-P4.4,G1.1-G1.2,M1.6,M1.7 P3.1 P3.2,S1.5-S1.6,S4.2- S4.4,S4.12-S4.14 E1.7,E2.3,E2.6,E2.13-2.17,E2.21 E1.1,E1.2,E1.8 E1.3,E1.9-E1.12, E2.1,E2.4-E2.7,E2.11,E2.12 E1.5,E3.1-E3.6 M2.3-M2.6 M3.5,S2.1-S2.20 M2.2,M2.9-M3.1, M3.3,M3.4,M3.6-M3.12, E1.6,E2.2 G6.2,S4.1,S4.6-S4.11 M1.1,S1.1-S1.4 M1.4 M1.8,M3.2,S3.1-S3.7 G2.1-G6.1,G6.3 A1 A2 A4 A5 A6 CASS-CSR4.0 Building Green Cities Building Green Environmental Strengthening Governance Energy Promoting Conservation and Emission Reduction Clean and Low-carbon Operation and Enjoying Creating Quality Life a Better Life for Creating Employees Win-Win with Development Partners Undertakings Public Welfare Healthy and Sustainable Development Regulating Information Disclosure Enhancing Risk Management Practicing CSR Management Key Performance Rating Report Content Index Feedback Society Governance Environment Contents About the Report Leaders Messages from About BG Investment: Green Work of Hard with 15 Years Building Dreams the Poverty Reduction and Enhancing Education for Elimination of Poverty at the Decisive Stage Better Environment: Painting a Beautiful Green with Picture Grass, Dense Forests, White Clouds, and Lush Mountains Deep Love: Focusing on Every Detail of the Life to Light Up Every Corner of the Heart Coping with Changes Proper Through Governance and Achieving Greater Development Outlook Appendix Index Team: Zhang En Team: Expert of the Rating Scan the QR code to check the file of enterprises rating Rating Date: 2020.5.8. （★★★★★） （★★★★☆） on CSR Report Rating: Huang Qunhui Process evaluator: Ren Jiaojiao, Zu Zhinan Process Vice-chairman of Chinese Expert Committee Leader of the Rating Through evaluation and deliberations, the evaluation and deliberations, the Through Enterprises Beijing rate to agreed Team Rating Social Corporate Limited Company Group which Responsibility Report 2019 as 5-star, an excellent CSR report. meant it’s The Report began with the two CSR topics, The Report began with the two CSR topics, 15 with Dreams Building Investment: “Green and “Poverty Reduction Work” of Hard Years and Enhancing Education for the Elimination of Poverty at the Decisive Stage”, which such issues, hotspot to systematically responded alleviation, poverty and progress ecological as sense of responsibility great and showed BG’s the “BG actively responds set as an SOE. We CSR BG’s to present section to the UN SDGs” action and key performance in the 17 SDGs, it international vision. Therefore, displaying BG’s has excellent creativity. Overall rating Creativity Team: Deng Guosheng Team: Beijing Enterprises Group Company Limited Corporate Corporate Limited Company Group Enterprises Beijing for six Report wins the 5-star rating Social Responsibility consecutive years （★★★★★） （★★★★★） （★★★★） The Report disclosed and compared data on data on The Report disclosed and compared 35 KPIs (key performance indicators) over the assets”, “Total “Total years including past three tax payment”, “New patents obtained”, energy “Comprehensive employees”, “Total consumption per unit output value”, “Total and protection” investment in environmental so on, and made horizontal comparisons of 500 Chinese Service among the Top the 81st 10 Most Enterprises and the 1st of the Top Industry of Influential Enterprises in Water it has leading performance China. Therefore, in comparability. Readability The Report maintained the theme of “For a Better Life”. Adhering to the “triple bottom the Report had a clear logical line” theory, and highlighted key issues, responding structure stakeholders of needs and expectations the to deep insights into the BG’s while interpreting billowing The responsibility. social of fulfillment with a Chinese river in the cover of the report pioneering spirit BG’s painting style represents in the course of “undertaking new businesses”. CSR section testifies BG’s The “CSR Voice” stakeholders, of comments with performance of the Report. QR thus enhancing the readability inserted in multiple chapters of the codes were communication Report, enhancing the Report’s the Report has Therefore, with readers. outstanding readability. and Achieving Greater Development” and so and so Development” and Achieving Greater it has leading performance in on. Therefore, completeness. Balance and data negative disclosed Report The information such as “the number of work safety accidents or casualties occurred”, casualty”, “safety and environmental “staff turnover etc. rate” “staff hazards”, protection the Report has outstanding balance Therefore, performance. Comparability （★★★★★） （★★★★☆） （★★★★★） Disclose more detailed information about deficiencies in CSR performance for better CSR performance for better detailed information about deficiencies in Disclose more balance of the Report. Suggested Improvements industrial key indicators for better completeness of the Report; 1. Disclose more 2. The Report systematically disclosed 88.67% of The Report systematically disclosed 88.67% of various aspects industrial key indicators from a Painting Environment: “Better including Grass, Dense with Green Beautiful Picture White Clouds, and Lush Mountains”, Forests, “Deep Love: Focusing on Every Detail of the Life CornerEvery Up Light “Copingto Heart”, the of Governance Proper with Changes Through The Report systematically disclosed industrial industrial disclosed systematically Report The quality materiality issues including BG’s products, innovation in management, occupational health management, work R&D and application of eco-friendly safety, technologies and equipment, saving energy the emissions of the three reducing resources, solid waste), wastes (waste gas, waste water, governance the and environmental around the Report has perimeter of plants. Therefore, outstanding materiality. Completeness BG set up a social responsibility work leading work leading BG set up a social responsibility Vice Manager the General which for group, general the control to leader the as served and key points of the reporting direction of charge took the Chairman and process of the Report. and approval the final review to tool significant a as Report CSR takes BG performance, responsibility social improve to the needs of stakeholders and respond management enhance social responsibility with its clear functional positioning and based issues materiality identified BG values. policies of China, international on macro and industry standards, national social responsibility strategies major corporate development trends, and stakeholder surveys. BG not only released the Report, but also motivated BG subsidiaries and branches to publish their own CSR reports, forming a multi-form and multi-level reporting on BG’s system. The Report will be released printed and other official website in electronic, the Report shows excellent versions. Therefore, management. process Materiality Rating Results management Process Rating Process materials; related supporting and Process Letter on Materials for the CSR Reporting identified the Confirmation 1.The Rating Team and drafted the Rating Report; and the disclosed information of the Report, process evaluated the compilation 2.The Rating Team 3.The Rating Report was submitted to the Vice on CSR Report Rating and the Leader and Chairman of the Chinese Expert Committee for their cosigning. experts of the Rating Team Rating Criteria Academy of Social Enterprises (CASS-CSR4.0) issued by the Chinese Social Responsibility Reporting for Chinese Guidelines on Corporate Rating. the Chinese Expert Committee on CSR Report Corporate Social Responsibility Report (2020) of of China Sciences and Rating Standards Upon the request of Beijing Enterprises Group Company Limited (hereafter referred to as “BG”), the Chinese Expert Committee on CSR “BG”), the Chinese Expert Committee on CSR to as referred Limited (hereafter Company Group of Beijing Enterprises Upon the request (hereafter Corporate Social Responsibility Report 2019 and rated Beijing Enterprises to form a Rating Team Report Rating invited experts to as “the Report”). referred Rating Report Rating

Corporate Social Responsibility Report 2019

Beijing Enterprises Group Co, Ltd. 62 BG actively responds to the UN SDGs 65 Established an effective, responsible, and transparent and transparent responsible, Established an effective, system for listed enterprises information disclosure the rights and development of employees protected Carried out strategic cooperation with governments, institutions, etc. research industries, scientific deepened “going global” and expanded international cooperation Compiled the Wildlife and Habitat Protection Construction Scheme and other documents for the zone competition Yanqing in Alxa League planted 10,000 saxaul trees Vigorously developed clean energy; promoted coal-to-gas developed clean energy; promoted Vigorously transformation of the water treatment the comprehensive promoted sewage, and solid waste environment, office to low-carbon operations and green adhered capacity of 39.899 million tons per day A sewage treatment comprehensive than 30 water environment carried out more projects treatment of the water treatment conducted comprehensive than 1,500 kilometers of riverways of more environment than 7,000 of more treatment conducted comprehensive kilometers of river basins square Promoted the development of clean energy such as natural Promoted coal-to-gas transformation and gas, solar power, of waste water and comprehensive the reuse promoted governance water environment of the planning and design services provided services upgraded urban renovation Carried out the construction of an excellent quality system of products the upgrading continued to promote in the procurement products prioritized green of office supplies friendly prioritized the application of environmentally and energy-saving techniques and materials during the implementation of projects Promoted seven municipal infrastructure projects in projects seven municipal infrastructure Promoted Cambodia, Sri Lanka, Pakistan, Nepal, Congo, and so on volunteer services provided and public welfare protection practiced environmental and education activities in the fields of sports, culture, Strengthened the reform of SOEs the reform Strengthened continuously optimized the employee system promotion corporate governance regulated Obtained 204 new patents 2,907 R&D employees innovation encouraged product insisted on innovation-driven development 1,058 sewage treatment plants 1,058 sewage treatment 162 water supply plants newly signed contracts worth RMB 13.86 billion on the governanceof water ecology solar power Generated 343 GWh of electricity through incinerating the power generation capacity through 26,932 tons per day domestic waste reached Female manager accounted for 31.6% of the management team provided mother-child rooms for breastfeeding employees Invested RMB 49.86 million in employee training with 450,000 person-times conducted 2.64 million hours of employee training in 2019 textbooks protection popularized environmental in 181 schools Assisted employees for 310 person-times and person-times 310 for employees Assisted funds over RMB 1.64 million of offered Invested a total of RMB 6.34 billion in in 89 districts poverty alleviation projects and counties (banners) 100% coverage of social insurance 100% coverage of old-age pension, medical insurance, unemployment insurance, workers’ compensation, maternity insurance, and housing fund schemes provident 100% coverage of health records donated ten makeshift health stations BG Actively Responds Responds BG Actively UN SDGs to the

Corporate Social Responsibility Report 2019

Beijing Enterprises Group Co, Ltd. 64 BG Serving Beijing Sustainability Report BG Outside Beijing Business Development Report BG Oversea Business Development Report Reports of BG Regional Development Regional Development Very poor Very Official WeChat Official Platform code QR the Scan to know more Poor Average Good Tel.: Tel.: Fax: Very good Very Research Office of Beijing Enterprises Group Company Limited, Building 2 (BG Mansion), No. 59 (BG Mansion), No. 59 Company Limited, Building 2 Office of Beijing Enterprises Group Research District, Beijing (100023) Huagong Road, Chaoyang Has the Report fully and accurately reflected BG’s major impact BG’s Has the Report fully and accurately reflected 1. society and environment? on the economy, to and disclosed information related 2.Has the Report responded to the biggest concerns of stakeholders? the information, data and indicators disclosed in an accurate, 3.Are clear and complete manner? 4.What about the readability (logic clue, content design, language and layout design)? Choice 3. Is there any suggestion for our future reports? for our future any suggestion 3. Is there Open-ended questions has not been covered? 2. What information of your interest 1. What do you think is the most satisfying part of this report? Your information Your Name: Company/Organization: Title: Feedback Dear reader: We Limited. Company Group Enterprises Beijing by public the to issued Report CSR eighth the is Report This would We our report. to constantly improve to hearing your opinions and suggestions looking forward are scan the QR code below below and send it back to us by mail, or in the questionnaire like to invite you to fill to finish the online questionnaire. Address:

Corporate Social Responsibility Report 2019

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