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China M China ac hinery E hinery ng ineeri ng Cor po ra ti on 2017 Social Responsibility Report ADD: CMEC Building, No. 178, Guang'anmenwai Street, Xicheng District, Beijing, China Postcode: 100055 TEL: +86 -10 - 63312002 1829.HK SOCIAL RESPONSIBILITY REPORT FAX: +86 - 10 - 63268156 E-mail: [email protected] Website: www.cmec.com Contribution to the World with Responsibility Stock Code: About This Report Reporting Period January 1, 2017 - December 31, 2017. This Report also includes additional content and information that pre-dates the stated reporting period. Reporting Cycle CMEC makes the world better ! This Report is annually published and it is the fifth social responsibility report released by China Machinery Engineering Corporation. Reporting Scope China Machinery Engineering Corporation and its subsidiaries. Reference In this Report, “CMEC”, “the Company” and “We” refer to China Machinery Engineer- ing Corporation, and “SINOMACH” refers to its controlling shareholder China National Machinery Industry Group. Reporting Data Sources All data in this Report is from CMEC’s annual report 2017, work report and other official doc- uments, with some historical data restated in compliance with the accounting standards. Compilation Conformance Guidelines to the State-owned Enterprises Directly under the Central Government on Fulfilling Corporate Social Responsibilities issued by the State-owned Assets Supervision and Administration Commission of the State Council (SASAC); Environmental, Social and Governance Reporting Guide by Stock Exchange of Hong Kong; Sustainability Reporting Guidelines (G4) from Global Reporting Initiatives (GRI); ISO 26000: Guidance on Social Responsibility (2010) by International Organization for Standardization; Guidelines on Corporate Social Responsibility Reporting for Chinese Enterprises (CASS- The gear, as well as the Chinese character of “中” and the abbreviation of the CSR 4.0) by Chinese Academy of Social Sciences; Company name “CMEC”, are the three major elements of CMEC’s logo. The Guide on Social Responsibility for Chinese International Contracting Industry released by gear embodies the business characteristics of machinery industry. The design China International Contractors Association. of concentric circle symbolizes the corporate culture of creating success by all the Company staff, and the value of harmonic relationship with the country, the society and business partners. The four letters in “CMEC” with sideper- Access to This Report spective, three-dimensional effect and tough font style reflect the corporate This Report is prepared and released in Chinese and English versions and is available in image of a stable, solid and imperturbable enterprise. The Chinese character paper and electronic formats. For any ambiguity between Chinese and English versions, “中” represents the Company’s Chinese identity. The three elements are in the Chinese one shall prevail. Please contact us if you need a paper version. You may vis- harmony with each other, vividly expressing the value orientation and spiritual it our website to download the online version. connotation of CMEC. ADD: CMEC Building, No. 178, Guang’anmenwai Street, Xicheng District, Beijing, China Postcode:100055 Contact person: Wang Sudan, Social Responsibility Office TEL:+86 - 10 - 63312002 FAX:+86 - 10 - 63268156 E-mail:[email protected] Website:www.cmec.com Scan the QR Code to Read This Report Online Contents Transformation and Upgrading Happy Homeland Harmonious Community Promoting Sustainable Development Sharing the Fruits of Development Benefiting Local Livelihood 01 Q&A with Leaders Stabilizing Operation and Development 41 Protecting Legitimate Rights and Interests 61 Implementing Localized Operation 83 07 Features on Responsibility Strengthening Basic Management 42 Paying Attention to Career Development 65 Improving Community Livelihood 84 23 About Us Improving Value-creating Capacity 44 Safeguarding Occupational Health 66 Engaging in Public Welfare 88 Extending Responsibility to Employees 67 25 Development Strategy Caring for Employees in Work 68 26 Corporate Cultural System 27 Organizational Structure 28 Company Governance 29 Global Business Layout 31 Social Organizations Joined 32 Awards and Honors 91 Key Performance Going Forward withOur Partners 33 Responsibility Management Safety and Environmental Protection 93 Outlook 2018 Pursuing Win-win Cooperation Guaranteeing Healthy Operations 33 Social Responsibility Management Model 95 Third-party Evaluation 34 Social Responsibility Organizational System Creating Excellent Projects 51 Passing on Green Value 73 35 Social Responsibility Work Promotion 96 Reporting Index 37 Stakeholders Management Building Responsible Supply Chains 55 Securing Work Safety 77 38 Stakeholders Communication and Engagement Achieving Win-win Development with Partners 57 97 Feedback Form 2017 Social Responsibility Report 01 China Machinery Engineering Corporation Q&A with Leaders 02 Q&A with Leaders The 2017 Belt and Road Forum for International Cooperation held in Beijing is of great significance to promoting the international and regional cooperation. What substantive results have CMEC achieved while participating in the forum, and what major progress has been made in CMEC projects along the Belt and Road? This Forum is an invaluable opportunity for CMEC to ex- CMEC in the field of transportation construction after the pand international cooperation. During the forum, CMEC railway project in Argentina. CMEC also signed the EPC signed the Supplementary Agreement of Argentina Bel- contract for two power station projects of Thar Block II grano Railway Reconstruction Phase I Project witnessed 2×330MW Coal Fired Power Project in Sindh, the contract by President Xi Jinping and Argentine President Macri. for the Punjiab RLNG Combined Cycle Power Plant, the In addition, CMEC leaders met with delegations from Company’s first H-class gas turbine power station, the con- the Trinidad and Tobago and Greece, as well as the dele- tract for Nickel-iron Smelting Project in Central Sulawesi, gation led by the First Vice Prime Minister of Ukraine. In Indonesia, and the contract for the Construction of 3,000 2017, the Company actively promoted the construction Units of Telecommunication Towers Project in Myanmar, of projects along the Belt and Road. The newly signed which is a major progress of CMEC in the Burmese market railway project in Mozambique is another breakthrough of and communications. 2017 is the last year of the CMEC Five-Year Development Strategy Plan. What major achievements does CMEC make in implementing national strategies, SINOMACH strategies and corporate strategies in the past five years? In the past five years, under the leadership of SINOMACH strategies of and tasks assigned by SINOMACH, we have and the CMEC Party Committee as well as the guidance strengthened the cadres’ recognition for SINOMACH’s phi- of the scientific decision-making of the Board of Direc- losophy and culture through cooperation with companies tors, the Company has steadily promoted reform and in- under SINOMACH, which helped realize mutual benefits, novation, and put forward a series of new concepts, new strengthen cohesion and win acclamation of all brother ideas and new measures, which has helped solve many companies. To strengthen the leading role of the Compa- problems in the development process, and thus boosted ny’s strategy, we have developed and released the 2013- high-quality development. For the implementation of 2017 Five-year Development Plan and put forward the national strategies, we have made substantial progress in vision “to be the world leading international engineering our main business sectors in countries and regions related contractor and services provider”. Attaching great impor- to the Belt and Road Initiative and the Going Global strat- tance to the implementation of corporate strategies, over- egy, especially in Pakistan, Sri Lanka, the Maldives, Ar- all, we have achieved the strategic goals through closed- gentina, Laos, and Serbia where we have contracted and loop management and other measures. constructed multiple projects. In the implementation of The 19th CPC National Congress is an important congress held in the crucial stage of “securing a de- cisive victory in building a moderately prosperous society in all respects and striving for the great suc- cess of socialism with Chinese characteristics for a new era”. How will CMEC implement requirements of the report delivered at 19th CPC National Congress while continuing to pursue a more splendid future of CMEC? CMEC should take on a new look and make new accom- we will pursue supply-side structural reform as our main plishments in the new era. We will remain true to our orig- task, and work hard for better quality, higher efficiency, and inal aspiration and keep our mission firmly in mind. We more robust drivers of economic growth through reform, Zhang Chun will actively practice national strategies and strive for the so as to constantly emancipate and develop social pro- goals set by the 19th CPC National Congress while en- ductivity. Upholding the global governance concept that Chairman deavoring to create personal values. We will always work “the Belt and Road Initiative should be jointly built through together with all stakeholders, develop excellent projects consultation to meet the interests of all” and the social re- for national economic development and the improvement sponsibility concept to “Contribution to the world with re- of people’s livelihood,
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