2020 ESG Report
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CONTENT P01 Notes for Report Preparation P02 Chairman's Statement P04 President's Statement P10 About Us P06 2020 Highlights P14 2020 Top Ten News P10 About Shanghai Electric P18 Achievements and Rewards 01 02 03 Undertook responsibility to give back to Concentrating on studying in the eld Create value for partners through shareholders with "intelligent" concept of "Intelligentization", and serving win-win "intelligent" Strategy customers with diligence P21 Compliance Operation P39 Intelligentization Innovation P61 Responsible Procurement P27 ESG Governance P54 Quality Assurance P67 Strategic Cooperation P32 Information Disclosure P57 Customer First P34 Party Construction Work 04 05 06 Being resourceful to train and Low-carbon "smart" wisdom, practice Warm "wisdom" to promote motivate employees green development harmonious community P69 Employees' Rights and Interests P89 Green Management P105 Industry Development P76 Development Incentives P94 Energy Saving and Effciency P108 Community Contribution P79 Health and Safety Increase P112 Assistance during the Outbreak of P84 Care and Support P100 Green Emission Reduction Pandemic P116 Appendix I. List of Disclosure Policies, Laws and Regulations P118 Appendix II. Environmental, Social and Governance Reporting Guide of HKEX Guide Index Notes for Report Preparation Overview Shanghai Electric Group Company Limited ("Shanghai Electric", "Group", "Company" and "we") began to prepare and disclose the 2009 annual social responsibility report from 2010, and to disclose its Environmental, Social and Governance ("ESG") report since 2016, and issued the report on annual basis. This is the fifth ESG report of our Group, truthfully revealing the Group's performance of its responsibility to shareholders, customers, partners, employees, environment, communities and other important stakeholders. And it shows the Group's performance in environment, society and governance. Basis of Preparation This report is mainly prepared with reference to the Guidelines for Preparing and Reviewing the Internal Control Report and Social Responsibility Report of Listed Companies of Shanghai Stock Exchange and the Environmental, Social and Governance Reporting Guide of The Stock Exchange of Hong Kong Limited, and partially refers to the "Core" plans of GRI Standard of Global Reporting Initiative (GRI), aiming to disclose information on environmental, social and governance performance of the corporate for relevant parties and shareholders. The content of this report is determined according to a set of established procedures, including identifying and ranking important stakeholders and ESG issues, collecting relevant data of the report, and reviewing quantitative data in the report. Scope and Boundary of the Report The policies and data provided in this report cover the Group's headquarter, internal divisions, branches, wholly-owned subsidiaries and holding companies, and the environmental data includes the important production-oriented subsidiaries of the Group. The data disclosure is from January 1, 2020 to December 31, 2020. Unless otherwise specified, the currency mentioned in the report is RMB, and the density data is based on revenue data in 2020 annual report of Shanghai Electric. Source of Data and Guarantee for Reliability The data and cases in this report mainly come from the Group's statistical reports and related documents. The report has not been verified by a third party. The Board of the Group undertakes that there are no false records or misleading statements in this report, and is responsible for the authenticity, accuracy and completeness of its content. Confirmation and Approval This report was confirmed by the Management Committee of the ESG and the Board of the Company, and then approved by the Board on 26 March 2021. 1 2020 / Environmental Social and Governance Report Chairman's Statement Zheng Jianhua Secretary of Party Committee / Chairman and CEO 2 Shanghai Electric Group Co., Ltd Chairman's Statement Since 2018, Shanghai Electric took Xi digital transformation, and the development group to deploy pandemic prevention Jinping' Thought on Socialism with of strategic emerging industries, which and control work according to different Chinese Characteristics for a New Era as significantly enhanced the development situations; organized all Party members, the guidance, deeply implemented the momentum of the Group. By the end of cadres and employees to voluntarily donate spirit of the important speeches of General 2020, the proportion of the scale of the RMB8.8 million in total; assisted a number Secretary Xi Jinping's visit in Shanghai and strategic emerging industries increased to of enterprises in Shanghai in resuming approximately 20% from the single digital in the use of old mask production lines, the spirit of the important guidance of the 2017. developed automatic mask production development of the state-owned assets lines, and accumulatively delivered 621 and state-owned enterprises and the Party Looking back on this year, our institutional mask production lines to all regions in China; building. Under the correct leadership of reform was comprehensively deepened, donated nearly 100,000 masks and various the municipal government, the support and the institutional innovation was anti-pandemic supplies to overseas partners, of all walks of life and the guidance of the blossomed. We actively promoted the making the Company's contribution in the "three steps forward" strategic goal of the institutional mechanism reform such as fight against the COVID-19 pandemic. Group, the Company has achieved high mixed ownership and key employee stock quality double-digit growth for three ownership and contractual management, 2021 is the 100th anniversary of the consecutive years on average. which fully stimulated the enthusiasm, founding of the Chinese Communist Party, initiative and creativity for entrepreneurship the opening year of the "14th Five-Year Plan", of its employees. We deeply promoted as well as an important year and a transition "delegating power, streamlining year to realize the second step of the "three administration and optimizing services", thus steps forward" strategic goal of Shanghai Especially in 2020, in the face of the the delegation of power is more precise, Electric. Looking forward to the next year, complicated and grim development the supervision is more effective and the we will adhere to the strategy orientation, environment, especially the severe impact services are more superior. problem orientation and result orientation, of the COVID-19 pandemic, Shanghai implement the "three steps forward" Electric overcame numerous difficulties and Looking back on this year, our technological development philosophy of the Group, and challenges and successfully completed all innovation was increasingly active, and maintain a high degree of organic unity the goals and tasks for the whole year by the scientific technological results are among national, social, shareholders, group, seizing comprehensive transformation and continuously emerged. We achieved corporate, staff and investor interests. The promoting the high-quality development the first wind turbine "black-start" in Company will strive for development by with high morale and vigorous attitudes, fully China with a capacity of 8MW, forming taking it as an important embodiment of its demonstrating the special responsibilities, a complete technological capability for core values to strive for glory for the country, special actions and special undertakings of smart energy solution; we successfully to build a career for the nation, to seek the state-owned enterprises in the special developed the high-capacity and high- prosperity for the people and to create value period. speed electronic-driven system, breaking for the society. We will exert ourselves to the international monopoly; we participated build Shanghai Electric into an international, Looking back on the year, we have achieved in the contracting and manufacturing of market-oriented and modernised enterprise extraordinary fast growth. We continued the reactor internals of the first global reactor group as well as a new aircraft carrier with high-quality development momentum of of "Hualong One (華龍一號)"- the success high-end equipment. We will celebrate the past two years: our revenue, net profit of the first grid connection of Unit 5 of the 100th anniversary of the founding of attributable to the owners of the parent Fuqing Nuclear Power Plant (福清核電站), the Communist Party of China with better company, new orders and brand value breaking the monopoly of foreign nuclear performance. achieved double-digit growth, and recorded power technology. another record high. Looking back on this year, we actively Looking back on this year, we constantly participated in the fight against the optimized industrial structure, and COVID-19 pandemic, demonstrating changed the growth driving forces. the responsibilities of the state-owned We speeded up efforts to promote the enterprises. Upon the outbreak of COVID-19 industrial development by scientific and pandemic, we immediately set up a Secretary of Party Committee technological innovation, promote the pandemic prevention and control leading Chairman and CEO 3 2020 / Environmental Social and Governance Report President's Statement Huang Ou Deputy Secretary of Party Committee / President 4 Shanghai Electric Group Co., Ltd President's Statement 2020 is a very extraordinary year. and steadily carried out the protection of the development of