About the Report Contents

This is the first sustainability report issued by CRRC Corporation Limited inAustralia. It offers an overview of CRRC’s approach and contribution to Chairman’s Message sustainable development and a window on CRRC’s long-term investment and business operation in Australia. 1

The report covers all CRRC’s subsidiaries in Australia, and the relevant data is collected by CRRC and its subsidiaries up to June 30, 2019. It is prepared in accordance with the GRI Standards and ISO 26000:2010-Guidance on Social Responsibility. In the report, CRRC Corporation Limited is referred to as “CRRC” and “we”. About CRRC Employees All comments and questions about this report are welcomed, and feedback can be sent to crrc@crrcgc.com. For more information, please visit the 3 25 website www.crrcgc.com to see the complementary information online. 3 Company Profile 26 Culture Fusion

3 Our Business 27 Training

4 Our Values 30 Occupational Health and Safety

5 Growing Deep Roots in Australia 31 Employee Rights

9 Compliance and Business Ethic

10 Stakeholder Engagement

11 Long-term Value 33 Community Development

12 Enhancing Travel Experience 34 Community Engagement

15 Developing with Mining and Freight Enterprises 35 Localized Employment

18 Supporting the Upgrade and Transformation of the 37 Cultural Exchanges Manufacturing

19 Industry Chain Partnership 39 Environment

20 Committed to Long-term Partnerships 40 Environmental Management

22 Supporting the Development of Local Suppliers 41 Eco-friendly Products

23 Industry Cooperation and Exchanges 43 Green Operation 2 , we As a provider of high-end equipment system solutions in the rail industry As a provider of high-end

with our reinforced sustainable operations, and contribute to the sustainable development of the operations, and contribute to the sustainable with our reinforced sustainable

connect the world through better mobility Pursuing sustainability is central to ongoing future business success. Pursuing sustainability is strive to and environment. society economy, years, we have been providing high quality products and professional multinational company and for more than 20 Our vision is to build a world-class Australia. in Australia, supporting the rail industry development the passengers in services for customers and comfort, safety and eco-friendliness When delivering projects, we fully consider the Australian stakeholders. continuous value for our strive to create We l passengers phases to make sure we meet the needs of loca the research and development, design and manufacturing of our products throughout Australia, railway and freight transportation in also contribute to the development of heavy-load Our technological and service innovations even better. transfer production established an R&D center in Melbourne that helps railway transportation capacity of bulk cargoes. We continuously improving the manufacturing. Australia’s techniques, develop the rail transit industry and upgrade Our aim is to build long-term Australia, we have been able to jointly build a community of shared interests. By actively engaging with our partners in fully integrate in the services. We their businesses go global by providing high-end products and strategic partnerships with local companies and help Australia in general. as promote the rail industry in industry supply chain to help local suppliers grow as well to creating a diverse and inclusive corporate culture, respect every employee and provide them with career development opportunities. Committed We and we promote wellbeing through targeted backgrounds. Our culture is based on an ethos of open communication we respect employees with different employees targeted courses, some of our employees will Australian have established a training system that provides our We entertainment for our staff. well as we value the safety and wellbeing of our employees as office in China. Most importantly, have opportunities to undertake trainings in our corporate their rights as employees of CRRC. the projects we the loc success. In addition to providing employment opportunities foral community, Engaging with our local communities is essential to our with our neighbours and key stakeholders. work on host open days to help keep open communication As a corporation, we attach Australian environmental policies and related regulations. actively aim to protect the environment and we strictly abide by We an focused on eco-friendly materials and the reduction of energy consumptiond greenhouse gas significant importance to research and development Australia. in As a result, we provide eco-friendly solutions for customers and low-carbon travel for passengers emissions. with our stakeholders. I Australia aims to improve our corporate transparency and build better relationships The release of our first sustainability report in CRRC. I the local community and partners for their strong support forn the future, we will continue would like to extend my sincere thanks to all employees, economic and social development. Australia's products, technologies and solutions to contributing CRRC’s Liu Hualong, Chairman of CRRC Corporation Limited

Chairman’s Message Chairman’s

2019 CRRC Australia Sustainability Report 1 44 CRRC’s Core Values CRRC’s Responsibility, Expertise and Outstanding Results Creative CRRC’s Vision CRRC’s affirm its To position as a global leading company in manufacturing and technology, with railway transportation equipment at its core Reliable The core values of our brand is also reflected in the The core values of our brand Responsible CRRC’s Mission CRRC’s Connecting the world through better mobility Customer-oriented CRRC Our Values on values-based activities. Our for the advancement of society through focusing strengthen our sustainable operation capabilities continuously We do is aiming for the and services we provide. Central to what we environmental and social impacts of the products operations continue to consider of public transport. sustainable development core". "a full-value creator with high-end equipment as our CRRC strives to become (CRRC): Company's English name

DMUs (Diesel Multiple Units), urban rail transit vehicles, engineering machinery, various electromechanical equipment, electronic equipment and various electromechanical equipment, electronic engineering machinery, DMUs (Diesel Multiple Units), urban rail transit vehicles, protection equipment, consulting, industrial investment and management, asset management, components, electronic devices and environmental import and export business. Professional products and services design, refurbishment, sales, leasing and technical services for railway locomotives, EMUs/ CRRC provides a range of services, including R&D, Having built world-leading technological platforms and manufacturing bases for rail transit equipment, CRRC provides a series of world-leading Having built world-leading technological platforms (EMUs), high-power locomotives, wagons and urban rail transit vehicles, which can adapt to products, such as high-speed Electric Multiple Units global market. complex geographies and meet diverse needs of the Our Business Advanced products and services States, Australia, South Africa, Malaysia, Turkey and India, etc. CRRC is one of the Fortune Global 500 companies, ranking 359th in 2019. and India, etc. CRRC is one of the Fortune Turkey Africa, Malaysia, Australia, South States, With a history of more than 130 years, CRRC provides leading, efficient system solutions for the sustainable development of the global rail industry industry rail global the of development sustainable the for solutions system efficient leading, provides CRRC years, 130 than more of history a With and services By the end of 2018, CRRC had provided products comfortable and eco-friendly products and services. with safe, reliable, efficient, bases in the United centres. CRRC has set up local manufacturing and regions, and established 15 international R&D to more than 100 countries Company Profile Company About CRRC About

2019 CRRC Australia Sustainability Report 33 66 The Evolution Rail consortium is comprised of Downer, CRRC and is comprised of Downer, The Evolution Rail consortium

800

CRRC has delivered more than passenger train carriages of the Train Waratah In 2016, the Evolution Rail consortium was contracted by the Victorian Government, as part of a Public Private Partnership (PPP), to Government, as part of a Public Private consortium was contracted by the Victorian In 2016, the Evolution Rail build and maintain 65 of this Project, Evolution Rail will finance, design, As part (HCMT) Project. Trains Metro deliver the High Capacity the metropolitan network for 30 years. new high capacity trains for Plenary. The coal rail freight company. Australian trains for Pacific National Pty Ltd (PN), an provides freight Yangtze) Co., Ltd. (CRRC Yangtze CRRC Yangtze Australia. By the end of 2018, CRRC tonnage in the largest load, longest train formation and largest tractive transport fleet is currently provides a variety of metro engineering vehicles for also Yangtze Australia. CRRC freight wagons of various types to had delivered nearly 9,000 transport project. biggest public Australia’s Sydney Metro Project, we have SDA1 locomotive for Queensland Rail. With high traction performance, created the CRRC Ziyang Co., Ltd. (CRRC Ziyang) provides the 18 diesel locomotives for Queensland Rail. innovative of "devil's corner" test. CRRC Ziyang has delivered Australia. for PN to launch the world's most powerful narrow-gauge diesel locomotive CRRC Qishuyan Co., Ltd. (CRRC Qishuyan) works with wagon that than 500 freight wagons including the new multi-purpose covered adopts a CRRC Meishan Co., Ltd. (CRRC Meishan) provides more applied and obtained 5 patents. have We and door locking reliability. lightweight structure, and improves capacity utilisation Australian company) (an Main Line Company Tasmanian and delivered products for CRRC Shenyang Co., Ltd. (CRRC Shenyang) has developed 20-tonne a axle load cement hopper wagons, 18-tonne axle-load ore wagons,xle load coal since 2014, including container flat wagons, 18-tonne hopper wagons, and meter gauge cement hopper wagons.

455 CRRC has been awarded with the contract of Metro Trains carriages of the High Capacity "Best Manufacturing Process Award" "Best Manufacturing Process Australia. In 2016 and 2019, Transport for NSW (TfNSW) placed orders Transport Australia. In 2016 and 2019, to Downer directly with CRRC as manufacturer, and since 2006, CRRC to Downer directly with CRRC as manufacturer, train carriages Changchun has manufactured more than 800 passenger Trains. for Sydney Since 1999, CRRC Qiqihaer Railway Rolling Stock Co., Ltd. (CRRC Since 1999, CRRC Qiqihaer Australian freight wagon parts for the Qiqihaer) has provided spare Qiqihaer has provided world-leading market. Since 2012, CRRC wagons and coal hopper wagons for freight wagons such as ore have been FMG and other customers. We Tinto, Billiton, Rio BHP strategic partner and a Tinto of Rio awarded the best global supplier Billiton. of BHP Ltd. (CRRC Co., Railway Vehicles Since 2006, CRRC Changchun a special purpose Changchun) has been a key partner in Reliance Rail, Partnership vehicle established exclusively to deliver the Private Public to finance, manufacture and maintain 626 suburban Trains with Sydney for Sydney’s Train) passenger train carriages (known as the Waratah rail industry’s rail network. Reliance Rail is supported by a team of the Downer foremost engineering and services organisations including In 2012, the EDI Limited as contractor and CRRC as manufacturer. fleet won the Sydney Waratah in Delivering Products for Australia for Delivering Products

wagons 25,000

CRRC has delivered more than freight Australian Infrastructure Plan has a key focus on rail infrastructure

advanced technical products and services and contributes our expertise to the local development of economy and society. Government’s Government’s development and provides for rapid development Australia. CRRC provides of the rail industry in to effectively reduce traffic congestion, improve to effectively transport efficiency and mitigate the environmental Australian Federal The impact of traffic. railways are vital to the transportation of mining andmining of transportation the to vital are railways believe that developing agricultural products. We rail sectors of the urban and intercity public transport system is a key plank in the solution a community citizen. Australia is a country with abundant mineral The mining industry is an resources development. national economy and Australia’s important part of as well as localised governance. We strive to be We as well as localised governance. a talent training a cultural exchange promoter, development accelerator and an industry provider, CRRC has been serving local customers and CRRC has been serving for more than 20 years. We Australia passengers in local procurement, insist on local manufacturing, and repair local employment, local maintenance Roots Australia in Growing Deep Deep Growing 2015-2030

2019 CRRC Australia Sustainability Report 55 88 stock. CRRC Yangtze CRRC Yangtze Australia Pty Ltd CRRC Yangtze Australia Pty Ltd provides locomotive technical service, after-sales service, overhaul service, spare parts sales and other related products and services, as well as delivery of rolling 8 Pacific Railway Pacific Railway (PRE) Engineering Pty Ltd PRE was established in March 2015 as a joint venture between CRRC Qiqihaer and the Australian company, B&W Group (50% shares held by both parties respectively). It established maintenance workshops in Sydney and Newcastle to provide technical solutions and maintenance services Australian freight for the industry. 4 annually to support the electrical products of the Project. HCMT CRRC Times Electric Electric CRRC Times Australia Pty Ltd (CTEA) CTEA, a subsidiary of Zhuzhou CRRC Times Electric Co., Ltd., is located in Morwell area, Valley, Trobe the La Australia. In June Victoria, officially 2018, CTEA commenced production metro on the 4M3T traction systems. We can produce 18 systems 7 CRRC Ziyang CRRC Ziyang Australia Pty Ltd CRRC Ziyang Australia Pty Ltd, located in Melbourne, was established by CRRC Ziyang in 2012. It is primarily responsible for the sale of locomotive parts and providing technical support services, to ensure that our "sales + service" model is implemented Australia. in 3 German company, BOGE German company, Group, that provides absorber shock suspension parts for automobile manufacturers. Melbourne Plant of Delkor Rail Pty Ltd (CRRC Delkor plant in Melbourne) In 2018, CRRC Delkor acquired a plant in Melbourne, formerly Australia by established in 6 in Australia is mainly trade and in focuses on wagon business, including coal and iron ore transport vehicles. CRRC Australia Pty Ltd Australia Pty CRRC Australia Pty Ltd was CRRC founded in 2012 in the central business district of Parramatta, on behalf The company, NSW. overall of CRRC, formulates the development strategy and Australia, coordinates plan in of and manages the business in CRRC and its subsidiaries after- Australia, and assists with The business sales services. 2 (Thomson . It was also Best Transit Project Best Transit and Asia Pacific Rail Deal of the Projects Grand Prix – 2017

Partnerships Awards, Asia Pacific PPP Asia Pacific PPP Awards, Partnerships – 2016 Infrastructure Year Deal of the Investor Award Award – 2017 Partnerships Awards nominated 2018 Core Values Association (Infrastructure) – International for Public Participation (IPA2). CRRC Changchun Australia was founded CRRC Changchun and in October 2016 in Melbourne, Victoria supports the design, manufacturing and This Project. delivery work of the HCMT Project won Awards at the 2016 PFI Year Reuters), CRRC Changchun Australia Rail CRRC Changchun Pty Limited (CRRC Changchun Australia) global customers since its establishment. Co., Ltd. (TMT) and became a subsidiary of has and in 2011, TMT subsequently started a global market service. Delkor has provided accumulated 1.8 million track shock absorbers for Delkor was founded in 1983, about 22 kilometres west of the Sydney CBD. Since 2002, it has worked closely with CRRC Times Zhuzhou Technology New Material Delkor Rail Pty Ltd Delkor Rail (Delkor)

CRRC Subsidiaries in Australia in CRRC Subsidiaries 5 1

2019 CRRC Australia Sustainability Report 7 10 channels Communication Annual reports; official website; social responsibility reports; cooperative forums; communication activities; open days; meetings; media interviews; etc. Stakeholder expectations Promotion of industrial development; local employment; corporate transparency Carbon emission; waste management Community engagement; employment and skill development; Strait Islander cultures Torres Aboriginal and promoting Provision of high-quality products which meet local needs; quick Provision of high-quality products response services work, health Respect of the fundamental principles and rights at of training and safety; integration of diverse cultures; provision Local purchases; fair cooperation and opportunity Creation of jobs; compliance management; tax payment; development of the rail industry Media Partners Customers Employees Communities Stakeholder The Government The Environment identification Stakeholder Engagement Stakeholder CRRC’s and feedback into the sustainable development of with our stakeholders and incorporate their views we engage ascertain materiality, To to evaluate our we take these material topics as important indicators actively communicate with our stakeholders how Australia. We subsidiaries in carry out sustainability management. business performance and Anti-corruption To prevent all forms of corruption, To Australia in every manager from CRRC on has to sign a letter of responsibility report All managers’ anti-corruption. to CRRC their financial statements helps which headquarters monthly, monitoring strengthen anti-corruption and supervision. Taxes payment Taxes In compliance with local laws, we In compliance with local laws, firms entrust qualified local accounting authorities to file tax returns to the tax basis. Australia on a quarterly of revised Regulations . To satisfy the above To . , and Trading Risks of Bulk and Compliance management

and risk management into daily management. supervision. In 2018, CRRC issued supervision. In 2018, CRRC including risk management guidelines requirements, CRRC subsidiaries in Australia incorporate internal control We place great importance on place great We abiding compliance management, Australian laws, regulations and by internal industry rules, carrying out control and risk management, and conducting anti-corruption ComprehensiveSystem Risk ManagementCommodities on Internal Audit

Compliance and Business Ethics Business and Compliance

2019 CRRC Australia Sustainability Report 99 Long-term Value 1212 Double-deck EMUs manufactured by CRRC Changchun for Sydney Sydney’s Waratah Train provides stable stable provides Train Waratah Sydney’s performance In 2005 CRRC received a manufacturing order for 626 Waratah Train carriages Train manufacturing order for 626 Waratah In 2005 CRRC received a Project, more commonly as part of the Railcorp Rolling Stock PPP from Downer, of train for presented a new type The Waratah Project. Train known as the Waratah commuter rail network. Sydney’s manufactured by CRRC, are Train The Downer-designed car bodies of the Waratah to corrosion and aging, and made of high-strength stainless steel that is resistant to 130 km/h. With exceptional the trains have a maximum operating speed of up have greatly improved levels of reliability and a very low failure rate, the new trains the Sydney rail network. passenger experience and service reliability across as the preferred rolling stock Train These outstanding results position the Waratah is evidenced by additional client product within the Sydney Metropolitan area which orders during the period from 2016 to 2019. Case study: Enhancing Travel Travel Enhancing Experience rail Safe and comfortable urban range of transportation presents a low capacity, advantages, such as large land consumption, low environmental impact, and low energy consumption. most carbon- Rail transport is one of the transport. efficient forms of passenger in rail CRRC leverages our expertise to transit equipment manufacturing improve needs and meet customers’ travel experience. CRRC passengers’ takes into full consideration the comfort, safety and eco-friendliness of our products in the R&D, design and manufacturing processes. Train In 2012, Sydney Waratah won the “Best Manufacturing Process Award”.

Contribution to the Sustainable Development Goals (SDGs)

travel experience, deepen cooperation with local business, and support the transformation cooperation with local business, and support the travel experience, deepen for all Australia, thus creating long-term and stable value in and upgrading of manufacturing stakeholders. We are committed to providing quality products and professional services to the world. By to providing quality products and professional services are committed We the public’s innovation and service improvement, we enhance continuous technological Long-term Value Long-term

2019 CRRC Australia Sustainability Report 1111 Long-term Value 1414 ferent customers. The product is widely used in The product ferent customers. ancouver Metro, the Hong Kong MTR, the Singapore MRT, and the Kong MTR, the Singapore MRT, ancouver Metro, the Hong Making the rail track vibrate less and noise lower less and noise rail track vibrate Making the To reduce structure-borne vibration and noise, and provide greater train stability, the Delkor Egg baseplate has been placed between the Delkor Egg baseplate greater train stability, reduce structure-borne vibration and noise, and provide To improves passenger comfort. The rail fastener ensures railway safety and also on the Sydney Harbour Bridge. the sleepers and the rails of dif comes in a variety of standard sizes to suit the needs The Delkor Egg baseplate such as the Sydney Harbour Bridge, the V many large-scale projects, London Underground. Case study: train. During this period, Stakeholder-oriented R&D Stakeholder-oriented

In October 2018, testing of the first of Melbourne’s new 65 HCMT’s commenced at Downer’s new 65 HCMT’s newly the first of Melbourne’s In October 2018, testing of more The new trains will be able to carry 20 per cent facility. refurbished Newport manufacturing current fleet. passengers than Melbourne’s of their bid, actively sought public feedback on a range of issues including safety, comfort and public feedback on a range of issues including safety, of their bid, actively sought Government invited the stakeholders to visit the In 2018, the Victorian environmental friendliness. design, comfort and safety of the new HCMT prototype train to test the which resulted relevant feedback were collected and carefully analysed, more than 2,500 pieces of drivers were also invited to test Train to the original design. in more than 150 improvements feedback resulted in additional improvements. features of the train and their functionality. better having HCMT new the in resulted stakeholders with engagement extensive This For the HCMT Project, CRRC (as part of the Evolution Rail consortium) meticulously examined (as part of the Evolution Rail consortium) meticulously Project, CRRC For the HCMT Rail, as part and development, and design process. Evolution various factors in the research Case Study:

2019 CRRC Australia Sustainability Report 13 Long-term Value 1616 The wagons provided by CRRC Yangtze for PN improves Yangtze The wagons provided by CRRC the transportation efficiency for customers. Enhancing the railway transport capacity for bulk goods transport capacity for bulk Enhancing the railway In 2016, the SDA1 locomotive produced by CRRC Ziyang completed a test carried out on the railway from the Hawkesbury River to the carried out on the railway from the Hawkesbury River produced by CRRC Ziyang completed a test In 2016, the SDA1 locomotive curvature. on a gradient of up to 25 degrees and s-bend than 8,500km long with a more than 75% of the track Cowan Bank, a line more can tow more than 8,000 tonnes and has The SDA1 high-power locomotive is known as the "devil's corner". the test Due to its difficulty, Our products gained the rail freight transport capacity. which can significantly improve kilometres per hour, a maximum speed of 120 and QUBE. Australian logistics companies such as SCT recognition by the rail freight Australian manager of PN, an received a letter of commendation from the commissioning Yangtze In May 2019, CRRC high-quality sugar transportation wagons and the efficiency of our he expressed gratitude to CRRC for providing In the letter, company. delivery. Case study: A strategic partner of BHP Billiton of BHP strategic partner A 2012. As a strategic supplier for rolling stock and core components of BHP Billiton, CRRC a strategic supplier for rolling stock and core components of BHP As 2012. In Billiton to explore overseas market and grow with the company. Qiqihaer helps BHP Billiton. 587 ore wagons from BHP September 2015, CRRC Qiqihaer received an order of developed an independent In response to the customer's urgent needs, CRRC Qiqihaer In a period a little over 5 production plan to enhance personnel and technical support. within the required timeframes.months, CRRC Qiqihaer successfully delivered all wagons for the 4000th ore wagon for BHP In 2019, CRRC Qiqihaer held a completion ceremony as a major supplier for rolling Billiton and was presented the Certificate of Contribution Billiton. stock and components by BHP vibration test-bed, which can CRRC Qiqihaer has a world-leading wagon fatigue and days, we can verify the reliability obtain data from wagons up to 25-years old. Within 20 At present, CRRC optimisation. of wagons and can provide recommendations for future Billiton ore wagons for BHP Qiqihaer has completed the fatigue test of 40t axle-load through this test-bed. As a business partner, we have been working closely with BHP Billiton for nearly 20 we have been working closely with BHP As a business partner, gained components to the rolling stock, we have gradually years. From the supply of and after-sales service. Billiton's trust in our R&D, lean manufacturing BHP Billiton since wagons for BHP CRRC Qiqihaer has been supplying the 40t axle-load Case study: The completion ceremony held by CRRC Qiqihaer for the 4000th ore wagon for BHP Billiton The completion ceremony held by CRRC Qiqihaer for the 4000th ore wagon for BHP

CRRC Qiqihaer becomes a strategic Billiton supplier of BHP breakthroughs, and continuously improve breakthroughs, and continuously capacity with the local rail freight transport our advanced cargos. In the field of heavy-load transport, In the field of heavy-load enterprises Australian mining and freight level. have a long legacy and high technological strive to make We Enterprises Developing with with Developing and Freight Mining

2019 CRRC Australia Sustainability Report 15 Long-term Value 1818 CTEA facility CTEA A local R&D centre A The Morwell plant enabled the core components including traction The Morwell plant enabled the core components including As the biggest single order of trains in Victoria’s history, the HCMT Project will create the HCMT history, of trains in Victoria’s As the biggest single order transport system. public an evolution in Melbourne’s and established a rail vehicles engineering research In November 2017, CRRC needs. to develop products tailored to customers' development centre in Melbourne stock projects in the rolling The centre will provide technical support for CRRC’s in the design, manufacturing Asia-Pacific region and tackle the technical challenges centre operation rolling stock the become will it Moreover, trains. of and maintenance for the local Australia and create employment opportunities of CRRC Changchun in AU $9.35 million in research and development. area. In 2018, CRRC invested Case study: High-end technology transfer To manufacture supporting electrical products for the HCMT Project, CTEA established a 2,100 square metre plant in Morwell to meet established a 2,100 square metre plant in CTEA Project, electrical products for the HCMT manufacture supporting To products. the needs for the production and maintenance of electrical and auxiliary system to be produced locally in Victoria. Case study: Supporting the Upgrade Upgrade the Supporting of the and Transformation Manufacturing role in the The rail industry plays a crucial manufacturing global high-end equipment on technological industry and is focussing of equipment innovation and improvement CRRC has manufacturing processes. in R&D locally increased our investment centre in and established an R&D Australia to promote the development Australia and the of the rail industry in Asia Pacific region. broader Tinto. Up Tinto. Tailored vehicles meet customers' demand Tailored CRRC Qiqihaer launched the mass production of 250 ore wagons for Rio to June 2019, CRRC Qiqihaer has exported more than 6,000 wagons of various needs for ore transportation and its which meet the company’s Tinto, types to Rio future development. Rio Tinto is one of the world's largest mining companies and suppliers of mineral is one of the world's largest Tinto Rio for 600 ore Tinto from Rio products. In 2012, CRRC Qiqihaer received an order Australian conditions and the technical requirements of meet demands, To wagons. by establishing a professional technical CRRC Qiqihaer rapidly responded Tinto, Rio The wagon is able to carry 139.5 tons of team to develop the Q-series ore wagon. tons, while its own The traction capacity is 38,000 iron ore within a 40-ton axle load. km/h, and the The fastest speed of the ore wagon is 80 weight is only 20.5 tons. payload of each wagon is greatly increased. It was the wagon with the largest single loading capacity in the world at that time. Q series ore wagons improved the production and operational efficiency of Rio and the production of iron ore has increased by millions of tons compared with Tinto, the "Most Valuable As a result, CRRC Qiqihaer was granted the previous capacity. Group. In June 2018, Tinto Supplier" and the "2013 Best Supplier in China" by Rio Case study:

Delivery ceremony of the first batch of the Q-series 40t axle-load ore wagon produced by CRRC Qiqihaer Then COO of Pilbara Supply Chain of Rio Iron Ore Company Tinto —— Clayton Walker, —— Clayton Walker, wagon has been greatly improved, and it is This will significantly improve much lighter. the efficiency of iron ore transportation. Not only the colour of the wagon has changed, the loading capacity of a single

2019 CRRC Australia Sustainability Report 1717 Industry Chain Partnership 20 s next Delkor participates in the Rail Solutions Asia 2019 in Malaysia Delkor participates in the Rail Solutions . Case study: Australian local brand becomes a global a global Australian local brand becomes Case study: brand In 2011, CRRC acquired Delkor, an Australian rolling stock spare and accessory Australian rolling stock an CRRC acquired Delkor, In 2011, but maintained Delkor’sparts manufacturing company independence in business all-round support for pricing, quality CRRC provides Through Delkor, management. Delkor also participates in control, supply and communication to the rail industry. itself from a self-serve the overseas sales of CRRC products and has transformed The Delkor Egg baseplate model into a "production + trade" comprehensive model. recognised product. has commenced the process to become a globally In 2016, the consortium of Plenary, Downer and CRRC Changchun (known as Evolution Rail) won the bid for the Melbourne HCMT HCMT Downer and CRRC Changchun (known as Evolution Rail) won the bid for the Melbourne In 2016, the consortium of Plenary, metro trains. Melbourne’ Project. Evolution Rail is responsible for the design, manufacturing and commissioning of 65 sets of and Pakenham lines, and generation seven-car trains will progressively enter service from 2020, operating first on the Cranbourne longer term will run through the new metro rail tunnel to Sunbury Case study: The Evolution Rail consortium delivers excellent results Committed Committed to Long-term Partnerships long-term and CRRC is committed to the companies. stable relationships with local to establishing From building partnerships with local consortia and joint ventures Australian the companies, CRRC serves creating long- market in a variety of ways, term value for our partners. Contribution to the Sustainable Development Goals (SDGs) Together with these partners, we are dedicated to promoting with these partners, we are dedicated to promoting Together

transit to engage with our local partners with a win-win mindset. transit to engage with our and social prosperity. local economic development The rail industry presents opportunities for public transport and provides efficient and low-cost transportation solutions for opportunities for public transport and provides efficient The rail industry presents and services in the field of rail management, operations leverages our experience in technology, Australia, CRRC freight. In Partnership Industry Chain Chain Industry

2019 CRRC Australia Sustainability Report 1919 Industry Chain Partnership 2222 The CRRC Delkor plant in Melbourne has established a mature supply chain in Australia’s Australia’s in Melbourne has established a mature supply chain The CRRC Delkor plant in automobile industry. Australia, with spare parts in CRRC Changchun purchased the majority of Project, For the HCMT than 60% including local procurement, design and manufacturing. a local spend rate of more with Australia, in stock, PRE purchased components and services For the maintenance of rolling 50%. a localisation rate greater than Local procurement Case study: Transfer of advanced technology Case study: Transfer CRRC transfers advanced technology on spare parts manufacturing and provides training to local engineers and technicians, as well as local CRRC transfers advanced technology on spare parts Engineering Pty Ltd to assist with the The bogie is one of the core components of rail trains and CRRC has contracted Hofmann businesses. needs to transfer all manufacturing techniques Project. Under the project requirements, CRRC welding and manufacture of bogies for the HCMT Pty Ltd , provide comprehensive support for the plant layout, acceptance inspection of and quality control documents to Hofmann Engineering systematic training, Hofmann After evaluation to guarantee the products' quality. tooling, employee training, and carry out the comprehensive production of the welding and manufacture technique of the bogie frame. Its capacities have Engineering Pty Ltd has enhanced its understanding also been improved. Supporting the Development of Development the Supporting Suppliers Local is a key factor Supply chain management to in allowing equipment manufacturers As CRRC's produce high-quality products. rail industry Australia’s involvement in have established continues to deepen, we closer relationships with suppliers chain and developed a sound supply management system.

for technical solutions, and helped for technical solutions, and of improve the technical capacity the rail freight wagon maintenance Australia. industry in Group's subsidiary Pacific Railway Group's subsidiary Pacific to provide Engineering Pty Ltd (PRE) high-end maintenance technology wagons. solutions for railway freight allowed PRE to develop input CRRC’s from a full life-cycle service capability to optimised production, maintenance costs design, streamline procurement Case study: Providing maintenance technical support for railway freight wagons support for technical Providing maintenance Case study: a In 2015, CRRC established in B&W joint venture by investing

2019 CRRC Australia Sustainability Report 2121 Industry Chain Chain Partnership Partnership 2424 CRRC participates in the AusRAIL Plus AusRAIL CRRC participates in the

CRRC participates in AusRAIL and other industry activities, providing a useful communications and other industry activities, AusRAIL CRRC participates in future rail industry strategy. Australia’s active role in developing tool and avenue to play an Industry Cooperation Cooperation Industry and Exchange

2019 CRRC Australia Sustainability Report 2323 Employees 2626 Team building of CRRC Changchun Australia building of CRRC Changchun Team Aboriginal and Torres Strait Islander artifacts exhibited at CTEA Torres Aboriginal and Within the Company, CRRC’s corporate culture aims to build a "culture of integrity and culture aims to build a "culture of integrity and corporate CRRC’s Within the Company, the fulcrum common goals and common development is The common interests, responsibility". cultural conflicts as much as possible" and we strive to eliminate of "seeking common ground by value matching. and achieve cultural integration various employee activities, such as welcome Australia organise member companies in CRRC’s quarterly newsletter receptions and Christmas parties and publishing a meetings for new employees, among colleagues.These cross-cultural management measures have to promote communication to understand between China and other regions, enable employees promoted the cultural integration enhance their team spirit. our corporate culture, and Case study: Respecting the Aboriginal and Torres Strait Islander culture and Torres Aboriginal Case study: Respecting the The multiculturalism. respects CTEA company hires employees that identify as and Strait Islander, Torres Aboriginal and celebrate cultural initiatives like NAIDOC where we aim to increase in July, Week Torres Aboriginal and awareness about Strait Islander culture. Culture Fusion Culture inclusive country Australia is a diverse and diverse of immigrants, with rich and of more than cultures among a population Australia, in 20 million. In our operations cross- we conduct open and inclusive full respect cultural management with our local for the cultural diversity of employees. . e ensure the

Contribution to the Sustainable Development Goals (SDGs)

of each employee, place significant importance on their fundamental rights and provide skill training. W significant importance on their fundamental rights of each employee, place while advancing their career of our employees and strive to make work enjoyable occupational health and safety Employees remain our most important stakeholder. CRRC and our business partners respect the cultural background CRRC and our business partners respect the cultural important stakeholder. Employees remain our most Employees

2019 CRRC Australia Sustainability Report 2525 Employees 2828 Training in CTEA Training We also encourage employees to participate in industrial and professional seminars. CRRC Changchun Australia provides training programs on leadership,Australia Changchun in industrial and professional seminars. CRRC also encourage employees to participate We Australia, in ngchun registration. In 2019, CRRC Cha management and lean production for employees by means of voluntary project management, quality employees' course to 32 employees, which improved training organisation, delivered a professional project management cooperation with a professional build an efficient project team. management skills, and helped We evaluate the work experience, skills and techniques of employees in different positions and positions different in employees of techniques and skills experience, work the evaluate We Delkor plant in programs to match their job requirements. CRRC’s our employees training offer training program. a complete employee skills matrix and associated Melbourne has developed employee, giving the training and expertise required by each The skills matrix clearly indicates for their of the challenges ahead and setting up platforms employees a better understanding career development.

development. advanced industrial knowledge, and advanced industrial knowledge, practice. get opportunities for business the The talent of our people becomes sustainable source and power of CRRC’s Training outstanding personnel is outstanding personnel Training talent absolutely essential to CRRC Australia member In CRRC strategy. learn companies, employees can Training

2019 CRRC Australia Sustainability Report 2727 Employees 30 Case study: Effective communication on work safety Case study: Effective communication meetingsgroup daily holds company The work. at safety to importance the recognises PRE is This is also evidenced by ensuring safety to focus on safety issues and new initiatives. the company has established a discussed at management level meetings. Meanwhile, who is a full-time Safety Manager, sound safety management system that is overseen by agencies, and communication with review responsible for safety management, work safety, the establishment of maintenance rules. To enhance safety awareness amongst employees, we post the safety management rules and enhance safety awareness amongst employees, To are required to and establish a feedback mechanism. Employees regulations in the workplace, health and in a timely fashion. In addition, we purchase occupational report all safety incidents labour laws to ensure their Australian in accordance with safety insurance for our employees occupational safety. they are familiar we provide safety training for new employees so For emergency management, wardens and the escape routes, the contact information of safety with the layout of the workplace, to employees in line with We also provide first aid training procedure. officers, and the emergency regulations. our production and attention to the occupational health of employees at pay particular We All hazardous chemicals in our plants have a Material Safety Data Sheet commissioning sites. chemicals, their potential damage to (MSDS), which records in detail the hazard level of the etc. In the production process, we require humans, as well as storage measures and conditions, All production strict protective measures. all employees that deal with hazardous chemicals to take to ensure that they are in line with the facilities are monitored on-site by safety inspection agencies standards. First aid kit in TEC Australia TEC First aid kit in Occupational Health Occupational and Safety and safety In terms of occupational health CRRC in management, the plants of safety is the Australia firmly believe that the safety of first priority and ensuring occupational employees and preventing responsibility of diseases is the most basic CRRC.

for information from employees, including suggestions the company has continuously received valuable Based on these communications, technical on these suggestions. In this process, the employees’ provide feedback to our employees We improving the production process. into skilled employees who are capable to produce Morwell plant's frontline workers have grown Today, ability is continuously improved. advanced train parts. Case study: Becoming skilled employees Case study: Becoming They behalf of Downer) are from the town of Morwell. Morwell plant (who are recruited on at CTEA More than 20 frontline employees provides training to these employees and follows backgrounds outside of industrial production. CTEA come from a variety of professional whiteboards and quality control meetings. up through communication

2019 CRRC Australia Sustainability Report 29 Employees 3232 As at 31 December 2018, CRRC had 153 employees in Australia, CRRC had 153 employees in As at 31 December 2018, local employees. CRRC employs 113 of which 18% were female 15% are female employees. Australia, of which employees in Our employees are provided holidays in compliance with legal requirements and for anyone who works overtime, they are either paid overtime pay or have the option to take in lieu. time off We guarantee We that employees are paid no less than the legal minimum wage These Fair Work Act 2009 , and have established systems to ensure the rights and benefits of employees are met. to ensure the rights and benefits of employees , and have established systems

Our partners and CRRC comply with Australia's federal, state and regional laws and regulations on the Australia's federal, state and regional with Our partners and CRRC comply racial equality and cultural of gender equality, adhere to the principles We protection of employee rights. equal opportunities on employment, All employees are guaranteed equality and forbid child labour. subsidiaries and the Australia-based All labour contracts signed between our training and promotion. Australia. In addition, we follow the by Fair Work employees have been reviewed but are not limited to: rights and benefits include Employee Rights Employee (Cth)

2019 CRRC Australia Sustainability Report 3131 Community Development 3434 Global . All of the eye-catching trains were . pollution Assisting local community to reduce noise noise reduce to community local Assisting  In 2018, CRRC delivered a batch of pink open-top ore trains to Australian customers. ore trains to In 2018, CRRC delivered a batch of pink open-top tailor-made in support of These stainless-steel ore trains are designed and awareness of breast cancer decorated with designated pink paint, raising the public’s prevention. Pink Ribbon Campaign Against Breast Cancer Case study: Case curve, the friction between the wheels and the tracks When a train travels on a noise pollution and impact on the surrounding environment increases and can increase for NSW to analyse options Transport worked with Therefore, PRE and residents. noise PRE established a laboratory to test options for to mitigate this noise impact. resolve a report into the findings, helping local communities reduction and has released the noise problem. Case study: Pink Courtesy Car Community Community Engagement CRRC strives Australia, Developing in into our to integrate self-development programs so that community development issues in the we are able to tackle any to establish a best way possible, striving with the local harmonious society together residents. government, companies and CTEA invited Indigenous and Torres Strait Torres invited Indigenous and CTEA Islanders people to the plant for cultural exchange Contribution to the Sustainable Development Goals (SDGs)

to local employment and Sino-Australian cultural exchange. to local employment and Our success is reliant on being an excellent corporate citizen and good neighbour to the communities we being an excellent corporate citizen and good neighbour Our success is reliant on people's wellbeing, contribute facilitate community development through improving operate in. Our goal is to Development Community Community

2019 CRRC Australia Sustainability Report 3333 Community Development 3636 Australia’s Australia’s orking with Melbourne Case study: Training young engineers Case study: Training Downer Australia and Melbourne, CRRC Changchun Project in the HCMT delivering Special Purpose Vehicle Through Evolution Rail, the program for new graduates. W universities on a professional young engineers training have partnered with local is providing industry internship Evolution Rail South Wales, and the University of New Technology University of Swinburne University, mechanical engineering and mechatronics majors, aiming at cultivating opportunities for university students of electrical and future rail industry professionals. facility. In addition, CRRC methods engineers provide advice to staff along installation advice to staff In addition, CRRC methods engineers provide and assessments at the Newport facility. Downer sets up its own training at the Newport facility. and commissioning activities The HCMT Project in Melbourne is a high-profile rail transit infrastructure project. CRRC, with rail transit infrastructure project. CRRC, with Project in Melbourne is a high-profile The HCMT Government. are delivering in partnership with the Victorian partners Downer and Plenary, of which will be 1,100 jobs across the life of the project, 15% In total, the project will create groups, creating and trainees, and 7% will go to disadvantaged to apprentices, cadets offered The project was nominated 2018 for the local communities. equal employment opportunities for Public Participation (IPA2). Association (Infrastructure) – International Awards Core Values

local communities. opportunities for the local community, community, opportunities for the local high- and provides training to cultivate the rail industry, calibre technical talent in development in boosting the sustainable With its business partners in Australia, in With its business partners CRRC creates equal employment Local Local Employment

2019 CRRC Australia Sustainability Report 3535 Community Development 3838 China’s high-speed rail service is famous high-speed China’s are around the world. Our students it. From intrigued to know more about modern the earliest locomotives to and foreign locomotives, various domestic and technologies have been introduced will be can see that China applied. We more international in the future. ——Prof. Hans Hendrischke The University of Sydney Business School Professors and students from University of Sydney Business School visit CRRC Qishuyan. . Case study: Professors and students from the from the Professors and students study: Case Business School visit CRRC University of Sydney Qishuyan the and Pacific National Pty Ltd (PN) jointly developed In 2015, CRRC Qishuyan MBA Australia. In July 2019, 20 locomotive for world's most powerful narrow-gauge visited from the University of Sydney Business School students and their professors such the visit, they learned about technological projects CRRC Qishuyan. During developed by CRRC, and as the 280 single-cylinder diesel engine independently industry gained more insight into the global rail transit equipment In the future, CTEA plans to work In the future, CTEA Australian universities in the with field of manufacturing, management and scientific research to increase communication with Australian people and promote technological progress between both parties. The model of the Melbourne HCMT Project sealed in a "time The model of the Melbourne HCMT capsule" To support local sports, CTEA, together with our partner Downer, Downer, support local sports, CTEA, together with our partner To sponsored a basketball team. CTEA and Downer CTEA The home and away jerseys of the basketball team sponsored by The home and away jerseys of the basketball team CTEA has organised various cross-cultural activities, activities, cross-cultural various organised has CTEA including: In July 2019, during the NAIDOC Aboriginal invited CTEA Week, Strait Torres Australians and Islanders people to the plant for cultural exchange. Day campaign at the Morwell plant, Government, local hosting the Victorian media, business partners including apprentices and local school Downer, children at the plant. In October 2018, CTEA held an Open held In October 2018, CTEA Case study: Memorable “metro train” in a time capsule first train was placed inside the "time capsule". The train was first train was placed inside the "time capsule". chosen to commemorate the strong tie Changchun has with the It will be opened 100 years later as a witness to local community. The model was painstakingly the friendship between the two cities. completed by the craftsmen of Changchun using the world's most advanced aluminium alloy train body manufacturing equipment with more than 50,000 drive commands. In 2013, Warrnambool, a port city in southwestern Victoria, a port city in southwestern Victoria, In 2013, Warrnambool, officially became sister cities with Changchun, the city where CRRC Changchun is based. On 27 May 2018, a ceremony was 100th held to bury a "time capsule" to celebrate Warrnambool's Project's the 3D model of the HCMT At the ceremony, anniversary.

with the community and further promoting with the community and further harmonious development. Australians and Torres Strait Islanders Strait Islanders Torres Australians and exchanges culture and promote cultural which also Australia, between China and mutual trust serves as a bond for building CRRC dedicates itself to cross-cultural CRRC dedicates itself to Aboriginal Australia to protect activities in Cultural Cultural Exchanges

2019 CRRC Australia Sustainability Report 37 Environment 4040 Environmental Environmental Management CRRC processes are eco-friendly, products and manufacturing ensure that CRRC’s To example, environmental standards and specifications. For has developed a series of and Downer’s certified facility have established an ISO 14001-2015 Newport CTEA system, as well as published environmental sustainability environmental management the illustrating our commitment to protecting policies and regulatory frameworks, environment.

Contribution to the Sustainable Development Goals (SDGs)

In terms of environmental protection and sustainability management, we strive to develop protection and sustainability management, we strive In terms of environmental greenhouse gas emissions. solutions and reduce energy consumption and environmentally sustainable these goals. an environmental management system to further have established We Environment

2019 CRRC Australia Sustainability Report 3939 Environment 4242 Use of eco-friendly materials Use of eco-friendly materials. For restricted materials, never use prohibited We Australian laws and standards. are in strict compliance with Our production processes are sourced locally and meet local requirements. with relevant standards and all of the chemical products our usage is in accordance and toxic substances are environmentally friendly materials, whose smoke Project used in the metro trains for the HCMT All of the non-metallic materials need for spray painting to prevent corrosion trains are made from stainless steel, eliminating the The HCMT standards. emission meets the regulatory which minimises environmental impacts. during the production process, rubber is recycled by All of the replaced components with new ones. with its customers, Delkor has replaced some old shock-absorbing together Working performance and the price is more attractive. The refurbished products show good reuse. professional companies for The company signed CRRC places great importance on the research and development of eco-friendly products. For CRRC places great importance on the research and AC-Diesel locomotives Australia are superpower example, the SDA1 locomotives exported to and its noise control also meets with internationally advanced adhesive performance, Australia exported in diesel engine the CRRC’s advanced international standards. Moreover, an outstanding fuel economy. emission standard and boasts satisfies the European Stage IIIA Improving environmental management of products Improving environmental stipulated the limits for banned and restricted Australia has explicitly CRRC Changchun components used in rail passenger vehicles. substances in the various more interior and control agreements with suppliers to incorporate environmental management parts into the control list. products R&D of eco-friendly

Eco-friendly Eco-friendly Products fields. CRRC’s highest priority is to provide safe CRRC’s equipment and eco-friendly rail transit cargo transport across the passenger and

2019 CRRC Australia Sustainability Report 4141 Environment 4444 . The production water is mainly f. All fans and air conditioners installed in the plant are energy All fans and air conditioners installed in the f. . The roof of the plant is insulated, to minimise the electricity consumption of The roof of the plant is insulated, to minimise the . the plant is equipped with advanced energy-efficient production facilities that improve product quality advanced energy-efficient production facilities that the plant is equipped with the plant has considered production process and material transportation and the route has been designed to production process and material transportation and the plant has considered the plant has made maximum usage of natural lighting through rectangular glass skylights on the roof and side walls. the plant has made maximum usage of natural lighting In terms of fitout and layout, of materials to improve the efficiency reduce the round-trip transport of incursion when the air conditioning system is turned air conditioners and heat efficient. equipment, In terms of the production are substations transformer power and stations compression air as such Facilities consumption. energy reducing while rate rejection reduce and on installed been have meters coulomb Additionally, consumption. material and energy of reduction the for workshops large-load to close placed usage. the plant commissioning devices to monitor power In terms of lighting, installed according to the unique needs throughout the factory High-efficient lamps are used and electric lights are Energy conservation The workshop is a steel-frame and production activities. actively aims to reduce energy consumption in construction Morwell plant The CTEA’s metres and a column height of about 8 metres. structure with a span of 6.79 use Water into the municipal sewage system via underground pipelines. In the Morwell plant, domestic waste is discharged plant uses pools and pumps to recycle tap water for reducing water waste. used for the rain test of vehicles, during which the The solid At the Delkor plant ferent wastes, there are specialised equipment to separate the oil and water, and then stores the waste oil for the treatment specialised equipment to separate the oil and water, by specialised companies. and the remainder is disposed. In relation to packaging, CRRC recycles all relevant packaging products to minimise the use of packaging Delkor reuses packaging from parts for the finished Australia reuses some packaging materials and disposes of the materials. CRRC Changchun remainder in accordance with relevant regulations. Treatment of "Three Wastes" of Treatment Morwell plant in Melbourne and the CTEA’s Australia, the Delkor CRRC has two plants in These sites discharge in the assembly of equipment products. plant, both of which are involved of waste gas, waste water and industrial residue. a relatively small amount gas treatment gases are discharged through a unified exhaust in Melbourne, all exhaust inspected and maintained by specialised companies. device, which is regularly containers chemical solvents) are placed inside dedicated waste and waste water (including are collected regulations and standards, and these containers in accordance with relevant on a regular basis. For the treatment of dif by specialised companies their environmental impacts and types. considerations and plans based on different business undertakes regular The company's maintenance of wastes. PRE conducts regular sorting that contains lubricating oil. PRE uses vehicle cleaning, which involves the removal of grease

Green Operation Green as industrial waste water and waste gas, as industrial waste water treated and discharged in are effectively standards. compliance with relevant new equipment, new materials and new new equipment, new materials models aimed at energy conservation As a result, all and emission reduction. such of the environmental contaminants To effectively reduce energy consumption effectively To reach our and pollutant emission and we vigorously goal of clean production, processes, apply new technologies, new

2019 CRRC Australia Sustainability Report 4343