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Scan for more information CHINA RAILWAY SINAL&COMMUNICATION CO., LTD. CHINA RAILWAY SINAL&COMMUNICATION CO., LTD. 2016 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT CRSC'S TECHNOLOGY SAFETY AND EFFICIENT CHINA RAILWAY SINAL& COMMUNICATION CO., LTD. ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT CHINA RAILWAY SINAL&COMMUNICATION CO., LTD. Address:CRSC Buliding, 1 Qichebowuguan Nanlu, Fengtai Science Park, Beijing. Post code:100070 2016 Telephone:010-51846108 Website:www.crsc.com.cn Email:[email protected] About this Report This report is the fourth publicly disclosed Report Data Specification Environmental, Social and Governance Report All key financial data disclosed in this report (or Social Responsibility Report) of China Railway are collected from China Railway Sinal & Sinal & Communication Co., Ltd (CRSC) . This Communication Co., Ltd's 2016 Annual Report, report aims at responding to stakeholders' other data are mainly sourced from internal expectation and demonstrates CRSC's concept, management systems of the Group. management, actions and performance of environmental, social and corporate governance Reporting Period and sustainability. 1 January 2016 - 31 December 2016. Some content is sourced from historical data. Reporting Reference This report is prepared with reference to the Reporting Specification Guideline on Corporate Social Responsibility For the convenience of expression and reading, of State-owned Key Companies by SASAC, “China Railway Sinal & Communication Co., “Appendix 27 Environmental, social and Ltd” may be expressed as “CRSC”, “the Governance Reporting Guide” the Rules Company“ and “we”. Governing the Listing of Securities on HKEX (Listing Rules) . This report also meets the Reporting Cycle requirements set out in the Sustainability This is an annual report. Reporting Guidelines (G4.0) issued by the Global Reporting Initiative (GRI) , the Chinese Access to the Report Corporate Social Responsibility (CSR) Report This Report can be browsed or downloaded Preparation Guide (CASS-CSR 3.0) issued by both in Chinese and English from the Social the Chinese Academy of Social Sciences and Responsibility' template at the official website of other national and international CSR reporting China Railway Sinal & Communication Co., Ltd uidance. or at the website of Hong Kong Exchanges and Clearing Limited. Scope of the Report Unless otherwise stated, this report includes China Railway Sinal & Communication Co., Ltd's headquarter, all its branches and subsidiaries, which the same scope of 2016 Annual Report. Environmental, Social and Governance Report 2016 Events 2016 Beijing–Shanghai High-Speed CRSC received double-A CRSC initiated the high- Railway won “Special Award” ratings from the State-owned speed railway exhibition in of the National Scientific and Assets Supervision and Qatar Technological Progress Award Administration Commission • CRSC participated in the construction of • CRSC received a double-A rating from • On May 11 and 12, CRSC organized an the control system for the railway, utilizing the State-owned Assets Supervision and exhibition of China's achievements in the world's most advanced CTCS-3 Train Administration Commission of the State high-speed railway, BeiDou Navigation Control System. Council for its business performance in Satellite System and nuclear power 2015 as well as between 2013 and 2015. in Doha, capital of Qatar. Attendants The rating is an appraisal of China's got a full understanding of China's central government-led enterprises and accomplishment and experience in the was announced on July 20. area of high-speed railway and they also had the opportunity to communicate and negotiate cooperation with CRSC. 01 02 03 www.crsc.com.cn Events 2016 03 The Mombasa-Nairobi Railway National media interviews CRSC CRSC won the title of “The in Kenya makes progress for reform experience Best Listed Company in Technological Innovation” at Golden Bauhinia Awards • On July 7, the Mombasa-Nairobi Railway • On December 19, more than 20 national • On November 25, at the sixth Golden in Kenya which was contracted by CRSC, media formed a team for “New state- Bauhinia Awards ceremony and also successfully finished the signal testing owned enterprises and new momentums Hongkong International Financial Week, of equipment for the Konza station's for reform” and interviewed CRSC. The CRSC won the title of “The Best Listed machine room. The railway is Kenya's interview focused on the deepening Company in Technological Innovation” at first new railway in a century, and it is the reform of the company and its story Golden Bauhinia Awards. The company ‘benchmark' project for China's railway of independent innovation of the core was awarded the title of “Listed Company “going out” strategy. technology for the railway control system with the Best Brand Value” at its first year in order to stimulate the endogenetic of being listed. impetus and enhance the core competitiveness. 04 05 06 Environmental, Social and Governance Report 2016 Events 2016 China Skills Competition: CRSC contributes to national CRSC promotes the connectivity CRSC fifteenth Skill construction of high-speed of railways in China's central and Competition forge craftsmen railways and intercity railways western regions with the eastern regions • China Skills Competition 2016---CRSC • On March 30, the Dongguan–Huizhou • On August 3, CRSC completed the Zhengzhou- Fifteenth Skill Competition held on Nov. Intercity Railway, whose communication Xuzhou High-speed Railway project by finishing 10 awarded nine “National Technological signals and information system integration the last part of laying the railway turnout Experts” and 16 “Technological Experts were constructed by CRSC, officially went into connecting the railway with the Zhengzhou in Central Government-led Enterprises”, operation, further facilitating the connectivity East Railway Station. Till then, Zhengzhou East creating an upsurge among all employees at the Pearl River Delta. Railway Station served as a hub to connect the to learn technologies and skills. • On September 10, the Zhengzhou-Xuzhou Zhengzhou-Xuzhou High-speed Railway with High-speed Railway whose information system the Beijing-Guangzhou High-Speed Railway, integration was constructed by CRSC officially the Zhengzhou-Xi'an High-speed railway, the went into operation. CRSC's ‘one-stop service' Zhengzhou–Kaifeng Intercity Railway and the integrating design and research, equipment Zhengzhou East Railway Station–Zhengzhou manufacturing, and engineering services, Xinzheng International Airport Intercity Railway. provided the “smart brain” and “neural center” for the railway. 07 08 09 www.crsc.com.cn Events 2016 05 CRSC’s technology: compared The first anniversary of the Line 9 of the Beijing Subway with the German engineers on listing: strong performance won Zhan Tianyou Award of perfection momentum, strong Civil Engineering improvement with efficiency broad prospects • At the beginning of this year, a WeChat • Since the first anniversary of the listing, • The Line 9 of the Beijing Subway which moments named “CRSC’s technology: CRSC is moving towards a future in was built by the CRSC won Zhan Tianyou compared with the German engineers on a more open and aggressive manner. Award of Civil Engineering at the perfection” became popular with more To "one industry-based, related to Awarding Ceremony of 13th China Zhan than 100,000+ reading amount in short diversity" for the idea, focus on building Tianyou Award of Civil Engineering held in time, and was reproduced by the People's communications signal business as the Beijing. Altogether, the ceremony honored Daily and other official WeChat. CRSC core of the seven business segments, 38 excellent technological innovation received rave reviews for the technology CRSC is firmly toward the bigger and projects. which gone beyond Germany weak stronger to do the strategic goal. engineers. "Deepening reform" "eight broken eight" "second venture", all the CRSC people are working hard, hard work, concentric circles "CRSC dream". 10 11 12 CONTENTS 01 About this Report 08 Chairman's Statement 10 About Us 18 Corporate Governance 22 Sustainable Development Management 1 2 Innovation Service Foundation Creates Value Improve Innovation Management System 26 Sound Quality and Safety System 34 Build Talent Innovation Platform 28 Enrich Product and Service 36 Facilitate Technological Innovation 29 Facilitate Smart City Construction 38 Promote Industrial Technological Progress 30 www.crsc.com.cn 3 4 5 Green Good Cooperation Creates Bright Future Environment for Talents Promotes Prosperity Provide Green Product 42 Protect Employee Interests 48 Contribute to Global Economy 54 Clean Production and Operation 44 Expand Space for Talent Development 49 Responsibility industry value chain 58 Good Atmosphere for Working and Living 50 Support Social Benefit 58 ESG Index 60 Feedback 62 Environmental, Social and Governance Report 2016 Chairman's Statement In 2016, China issued a As one of the most low-carbon and greenest China plays a key role in the international Medium and Long-term mode of transportation and logistics, rail community, not only in leading international Railway Network Plan; transport plays a significant role in society, affairs, but also in driving global economic expanding the high-speed not only saving time and increasing efficiency growth through its own development, especially rail network for the next but also by contributing to the sustainable driving those regions along the Belt and Road. few years