1 Chapter of Operation: Bringing into Play 16 01 the Project’s Comprehensive Benefits Flood Prevention 18 Drought Relief 19 Navigation Condition Improvement 20 Clean Electricity Supply 21 About This Report Chapter of Construction: Dedication to 22 02 Quality Projects Time Frame First-rate Engineering Design 24 The time frame of the Report is from January 1st, 2012 to December 31st, 2012. Part of the Refined Project Construction 27 29 content is beyond this duration. Accountability in Purchasing on an Overall Scale

Publication Cycle Chapter of Environment: Maintaining 30 03 the Ecological Balance of Nature This is an annual report and the third Corporate Social Responsibility Report published by Conservation of Biological Diversity 32 CTG. Contents Sustainable Utilization of Water Resources 37 Promotion of Energy Conservation and Emission 38 References Address 02 Reduction The Report is compiled in accordance with the requirements of the Guidelines of State- Response to Climate Change 39 06 owned Enterprises Directly under the Central Government on Fulfilling Corporate Social About CTG Responsibilities by the State-owned Assets Supervision and Administration Commission of A Brief Introduction to CTG 06 Chapter of Migration: Promotion of 40 the State Council (SASAC), PRC, in reference to the Sustainability Reporting Guidelines Social Responsibility 12 04 Sustainable Development for Migrants (G3.1) of the Global Reporting Initiative (CRI), Writing and Compiling Guidelines of the Management Coordination with the Government and Doing Well in 42 the Resettlement Work Chinese Corporate Social Responsibility Reporting (CASS-CSR2.0) and International Putting Migrants in Heart and Launching Community 43 Guidance on Social Responsibility (ISO 26000:2010). Assistance Supporting Migrants and Helping Them Build Self- 46 Title Description 72 Key Performance reliance and Self-improvement In the Report, “China Three Gorges Corporation” is also referred to as “CTG” and “we”. Table of 2012 Chapter of Employees: Establishment 48 Range of the Report Prospects of 2013 73 05 of a Harmonious Labor Relation 50 “China Three Gorges Corporation” is the principle part of the Report, including its Work with Dignity 74 Realization of life Value 52 subsidiaries, branches and affiliated institutes. Index of Report 53 Indicators Working Together to Create a Happy CTG Respect for Migrant and Skilled Labors 54 Statistics Source The 3rd-party 76 The data herein comes from the China Three Gorges Corporation annual report 2010/11 and Chapter of Public Welfare: Dedication 56 additional formal documents and statistical reports from CTG. Review 06 to Repaying the Society Helping Improve People's Livelihood 58 Further Reading & Report Request Readers' Feedback 78 Support of Culture and Education 60 If you wish to know more about social responsibility of CTG or download electronic version Disaster Relief and Rescue Actions 61 of this report, please visit the official website at: www.ctg.com.cn or scanning the QR code directly from the display in the back cover of the report. You could contact us at 86-10- Chapter of Global Presence: Be a 62 57081851 or send email to [email protected] for printed version. English and Chinese 07 Qualified Global Corporate Citizenship 64 versions are both available. The Latest Development of Our "Go Global" Strategy Overall Promotion of Localized Operation 65 Coordinated Development with Local Communities and 67 Environment Promotion of the Sustainable Development of Global 70 Hydropower Industry 02 Address Address 03

Address

The Three Gorges Dream, the Chinese Dream

Cao Guangjing Board Chairman, China Three Gorges Corporation

The relationship between climate change and energy supply has never been so direct and production patterns. In addition, we focus more on supplying low-carbon energy producing close and all countries are looking for an effective solution that could ensure sufficient energy green clean energy, providing green power in an environmental-friendly way to the world supply and tackle climate change. The Chinese government has set up an ambitious goal of that’s changing, tackling climate change with our product. building a comprehensive well-off society and doubling its 2010 GDP and per capita income The dream of CTG takes social harmony and people’s happiness as the basic principles for for both urban and rural residents by 2020, promoting the transformation of its energy CTG dream to come true. We integrate dedication, responsibility, innovation and harmony production and consumption, developing energy conservation and low-carbon economy into the blood of each and every member of CTG and fully tap our own strengths to improve and new energy and renewable energy to ensure China’s energy security. Consequently, to the wellbeing of disadvantaged groups through our knowledge, skills and resources. build CTG into an international first class clean energy group supplying clean energy for the Migration issue undoubtedly remains an arduous task in hydropower development in realization of building a comprehensive well-off society is a requirement for adapting to the China, however, we believe that as long as we draw on the experience of the successful sustainable development trend in the world and serving the national strategy. resettlement of over one million migrants for the Three Gorges Project and adhere to the The third industrial revolution with new energy as an important driving force hope for green principle of “long term cooperation, local integration, equal consideration of all sides, and development in the future, as well as opportunities and challenges for enterprises and mutual benefits and double-win”, we can better coordinate with the government in reservoir countries from all over the world. In the face of new situation, CTG will further strengthen its areas to do the migration work well and help migrants to achieve sustainable development. core business, accelerate the innovation of new energy, enhance its ability in value creation, We have been committed to becoming an international first-class clean energy group. adhere to its internationalized business operations to strengthen its competitiveness The challenge we encounter today will be driving force to realize our dream tomorrow. We worldwide, stick to innovation in terms of technology, manage and institution to enhance are dedicated to exploring a development path that is greener, more inclusive and more its economic growth potential and promote its healthy development in a production and sustainable with our global vision, open mind and passion for the career and along with other operation mode that is more intensive, sustainable and considerable of the nature and hydropower industry counterparts. We are dedicated to becoming leading force in China to society. drive the world energy revolution to the bright prospects of all the human beings. “The benevolent values the interactive relationship of everything in the universe”, keeping in mind our commitment to nature, we uphold the belief that the realization of our dream should be based on ecological balance. We integrate the concept of ecological civilization into every move in our strategic decision-making, operation and management to protect the nature. We endeavor to reduce greenhouse gas emissions by changing the way of our life and 04 Address Address 05

The Health and Vitality of the Yangtze River-CTG’s Commitment

Chen Fei President, China Three Gorges Corporation

China Three Gorges Corporation (CTG) was established with responsibility and “Build the tourism, and power generation. In addition, as a state-owned enterprise, we should shoulder Three Gorges Project and develop the Yangtze River” is a lofty mission bestowed on us the political, social and economic responsibilities well. At the same time, we will accelerate by our time. The Three Gorges Project is a national project that epitomizes the intelligence the pace to develop hydropower resources on the lower reaches of Jinsha River, and build and strength of the Chinese people and serves a large population and brings benefits for the 4 mega-size hydropower stations - Xiluodu, Xiangjiaba, Baihetan and Wudongde with generations to come. The Three Gorges Project is also a landmark for the great historical high standard and quality. During the process of developing Jinsha River hydropower revival of the Chinese Nation. During the construction and operation of the Three Gorges resources, we must adhere to the guidance of Scientific Outlook on Development, Project, we have been upholding strong sense of responsibility, carrying out our mission with handle the relationships between hydropower development and immigrant resettlement, great prudence, striving for first-class scientific design, first-class quality, high efficiency and environmental protection and local economic growth well, so as to promote the hydropower environment friendliness with strong willing to build a monumental project in hydropower industry development. At the new historical moment, CTG bear in mind the lofty mission of project history, to fulfill the long-cherished dream of the Chinese Nation to tame the “to maintain the health and vitality of the Yangtze River” enhance the scientific and efficient Yangtze River. In 2012, Three Gorges Project successfully withstood flood peak of 71,200 regulation and management of the cascade hydropower station system on the mainstream cubic meters per second which was the largest since the construction of the reservoir and of the Yangtze River, bring the comprehensive benefits into full play so as to better serve the protected the life and property of the people by the middle and lower reached of the Yangtze economic growth and social progress of the basin areas, flourish the people’s living, improve River. With all the generating units put into service, the Three Gorges Project generated ecological environment and achieve sustainability of water resources. 98.1 TWh of power annually which was a record high since its operation to provide reliable Responsibility and sustainability have been engrained in CTG’s mind and action as a maxim energy to China’s economic growth. The Three Gorges Project ship locks have been and principle. We are passing on the Three Gorges Project experience and Three Gorges successfully run in a safe and efficient way for 9 consecutive years. Over 100 million tons of Project standard, striving to forge a hydropower development and operation mode new and cargo passed through the Three Gorges Project in two consecutive years, which boosted the sustainable, developing more projects with strong sense of responsibility so as to promote navigation development on the Yangtze River. the sustainable development of the global hydropower industry! Today, the Three Gorges Project has entered new phase with operation as the core. While executing the left building task on the ship lift, we will further enhance the management and operation of the Three Gorges Project as a whole, study and summarize operation, turn from a passive mode into an active mode and from focusing vision to a broader vision, bring forward benefits in flood control, drought alleviation, water supply, navigation, fishery, 06 About CTG About CTG 07

About CTG

Canada

A Brief Introduction to CTG Macedonia Kazakhstan In order to build the Three Gorges Project and develop the Yangtze the United States River, with approval by the State Council, China Three Gorges Beijing Portugal Project Corporation was established on 27 September 1993 Tunicia Lebanon Pakistanl Chengdu and later on 27 September 2009, renamed China Three Gorges Moroco Yichang Algeria Nepal Corporation (CTG). It is a wholly state-owned enterprise, with a Jordan & Israel India registered capital of RMB 137.452 billion and a core business on Mali Vietnam Lao Philippines hydropower construction and operation, power generation, and Senegal Sudan Thailand Ethiopia professional services in this connection. CTG is fully responsible Guinea Sri Lanka Malasia Ghana for construction and operation of Three Gorges Project. As is Uganda Indonesia Ecudor authorized by the state, CTG will progressively develop hydropower Brazil Burundi resources of main stream and tributaries of the Jinsha River, build 4 mega-size hydropower stations Xiluodu, Xiangjiaba, Baihetan and Moritius Wudongde, initiatively explore new power source such as wind and solar energy, steadily implement it international strategy, and strive to become an international first-class clean energy group. Peru

Business layout

RMB 374.9 billion RMB 225 billion 29.34 GW 119.9 TWh RMB 36.9 billion RMB 19.3 billion RMB 10.2 billion 40 % RMB 7.441 million 15634

Total Assets Total Net Assets Controllable Annual Operating Total Profit Taxes and Duties Asset-liability Charity and Total Number of Gross Installed Generation Revenue ratio Donations Employees Capacity Capacity 08 About CTG About CTG 09

Core Idea Strategic A clean energy Orientation conglomerate with a core business on hydropower Cultural Declaration Three Gorges Spirits

We are CTG Science and democracy, seeking truth and To provide the community with clean energy in harmony with innovating, uniting and cooperating, being Vision ecological preservation, and grow up as a first-rate nationwide clean willing to shoulder responsibilities, seeking energy provider in the process of upgrading synthetic benefits of Yangtze tributaries excellence

An international leader in the industry in terms of general indices Mission Hydropower Development Principles

With competent globalized management and professional capability Build the Three Gorges Project and develop Build a hydropower station to stimulate the Primary the Yangtze River local economy, improve the local environment Objects Provide clean energy and build beautiful and benefit the resettled residents Entitled to core technology based on wholly-owned intellectual property and world-wide brands communities together Long term cooperation, local integration, equal consideration of all sides, and mutual benefits Prominent in core business, and with a well-structured hierarchy

Vision Core Value

Devotion, responsibility, Core Strategic Resource Value Harmonious Build international first-class clean energy Management Integration Creation Development group innovation and harmony Capabilities

Development of Capital Operation Business Construction Power Generation International Operation Division New Energy Tourism Development Strategy

To develop and utilize clean energy in a responsible mode is not only business operation and management pattern, but also the necessary choice to satisfy ever-growing demand for energy and cope with climate change. We keep Management Structure a close eye on opportunity and challenge the whole community brings, based on which we draw up our long- term development strategy. With our professional expertise, we make our utmost to offer safe, efficient, green and No shareholders’ assembly is established in CTG. Instead, its function is performed by the State-owned Assets harmonious energy to the society. Supervision and Administration Commission (SASAC) under the State Council on behalf of the state. The board consists of 9 directors, including Cao Guangjing (board chairman), Chen Fei (director and president), Yu Wenxing (director), Ma Zhigeng (outside director), Liu Zhi (outside director), Shi Jinquan (outside director), He Muyun (outside director), Wu Xiaogen (outside director) and Yao Yuanjun (employee director). In late December 2012, a board of supervisors was delegated by the State Council. By so far, CTS’s management hierarchy had taken shape.

Throughout 2012, the board governed and regulated CTG in a responsible and development oriented attitude. As legal manager of the enterprise, the board attaches great importance to the connection of environment, community and financial performance. This mentality of sustainable growth runs through each decision-making process. 10 About CTG About CTG 11

Hierarchy

Beijing Yichang Chengdu Headquarters Administration Bureau Three Gorges Complex China Yangtze Power Co., Ltd. Administration Office Department Strategic Development Department Planning and Contract Department Assets and Account Bureau Project Management Engineering Department Mechanical and Electric Bureau Relocation & Resettlement Department Capital Market Operation Department Human Resources Protection Department Echnology & Environmental Department Quality and Safety Department Enterprise Management Marketing Department Audit Department Supervision Department Department Party and Mass Affairs Labor Union Department International Department Center Information Technology Center News and Propaganda Institute Research and Development Center Tendering and Bidding Office Chief Engineer’s Hydropower Development Co., Ltd. Three Gorges Jinsha River Sichuan-Yunnan Hydropower Development Co., Ltd. Three Gorges Jinsha River Yunnan-Sichuan China Three Gorges New Energy Co., Ltd. China International Water & Electric Corp. Economic Development Co., Ltd. Yangtze Three Gorges Technology and Three Gorges Finance Co., Ltd. and Bidding Co., Ltd. Three Gorges International Tendering CWE Investment Corporation Inner-Mongolia Branch China Three Gorges Corporation, Tibetan Branch China Three Gorges Corporation, Nanjing Hehai Technology Co., Ltd. Xiluodu Project Construction Department Department Xiangjiaba Project Construction Baihetan Project Preparatory Office Wudongde Project Preparatory Office Xiaonanhai Project Preparatory Office Technology Co., Ltd. Three Gorges High-tech Information Three Gorges Media Co., Ltd. Co., Ltd. Three Gorges Tourism Development Co., Ltd Yichang Three Gorges Multi-Energy Electric Co., Ltd. Yangtze Three Gorges Nengshida Material Co., Ltd. Yangtze Three Gorges Equipment & Three Gorges Hydropower Plant Gezhouba Hydropower Plant China Yangtze Power Maintenance Factory Three Gorges Cascade Dispatching Center Xiluodu Hydropower Plant Xiangjiaba Hydropower Plant Investment Management Co., Ltd. Beijing Yangtze Power Innovation Yangtze Three Gorges Industrial Co., Ltd. Engineering Co., Ltd. Yangtze Three Gorges Hydropower Storage Power Co., Ltd. Inner Mongolia Hohhot Pumped 12 About CTG About CTG 13

Leadership in operation and management, and worked out Social Responsibility Key responsibilities of CTG social responsibility preventive measures and strategies accordingly to Organization Structure compliance office: Cao Guangjing Board Chairman evade risk or loss. Draw up rules, regulations and work procedures Chen Fei President In 2012, we systematically studied and streamlined related to social responsibility compliance Lin Chuxue Executive Vice President functions of each department concerned, and Organize preliminary study of social responsibility progressively systemized a social responsibility projects, put forward performance proposals and Bi Yaxiong Executive Vice President Social Responsibility organization structure to provide an organizational budget for the projects Fan Qixiang Executive Vice President Management guarantee for compliance of social responsibility. Organize and implement social responsibility Yu Wenxing Head of Disciplinary Inspection Team projects, as well as coordinate and lead-manage As owner of the Three Gorges Project and an electric Sha Xianhua Executive Vice President Key responsibilities of CTG social responsibility relevant work power and energy provider with vital importance to leading group: Zhang Cheng Executive Vice President state interest and national livelihood, in its pursuit of Identify internationally recognized codes, norms Key responsibilities of CTG social responsibility Yang Ya Chief Accountant economic performance, CTG is also responsible for and principles to comply with compliance officers: the environment of all interested parties, and striving Establish regulatory framework and work Communicate with parties concerned to push Compliance with Laws and to achieve a harmony of business development with procedures for social responsibility compliance forward social responsibility practices Communicate and cooperate with interested Regulations social progress and environmental protection. As Study and prepare middle/long-term plan, annual always, we pay attention to expects and appeals from scheme, performance project and funding for parties associated with social responsibility CTG consistently abides by the business ethics each interested party, seek for its understanding and social responsibility compliance compliance of good faith and fair competition, obeys the laws support, and strive to maximize the value in general Make regular inspections on the state of social Prepare plans for each department to perform and regulations, insists on integrity in business, for each party. In 2012, we steadily pushed forward responsibility compliance and expenditure in social responsibility tightens internal audit and control, and improves a complete management of social responsibility, this connection, assess the effect of project Organize and study topics of social responsibility risk management mechanism. In 2012, we further further improved the mechanism to perform social performance, review the completed work and related to each department promoted risk management and internal control responsibility, and strengthened training and assign work to be done Summarize and submit information associated with system, identified and assessed potential risks awareness of social responsibility to all the employees. social responsibility compliance

Leadership of CTG department Leadership Institutional construction, key point control concerned

Social responsibility Professional Other professional Social responsibility leading group of the committee of the committees leading group department department Risk Management Social responsibility Social responsibility Functional Social responsibility compliance office compliance office of Establishment of technical Improvement of the departments compliance office of the department the department standard for internal control anti-corruption system Internal Anti- Development of internal control Control Enhancement of anti-corruption talents corruption training Dedicated post for management Dedicated post for Social responsibility social responsibility Improvement of internal control Implementation of supervision Social responsibility social responsibility officers of the compliance of the training and inspection officers compliance department department

Vertical administration Instructive relation Main measures adopted in 2012 for promotion of compliance with laws and regulations Social Responsibility Organization Chart 14 About CTG About CTG 15

Substantive Issues Transparency Construction

In 2012, through interview with interested parties, analysis of international standard of social responsibility The interested parties' acceptance for CTG‘s construction and operation is fundamental for our sustainable compliance and influence on our own operation, we re-evaluated the issues concerned by the interested parties in development, and a dialogue with them is based on adequate and transparent information. We thus keep close four dimensions i.e. influence of the interested parties, our influence to the community, attention from the community, communications with them in an initiative and constructive manner, strengthen our cooperation, encourage their industrial code/social responsibility compliance standard, and made our utmost to disclose information associated involvement in our decision-making process of specific projects and ensure for them the rights to knowledge, with our operation and management. supervision and participation.

Principles for Substantial Topic Selection

Sustainability Reporting ISO 26000:2010 Public health and security Guidelines Guidance on social Chinese Academy of Social responsibility Investment to community Employment promotion Sciences' China Corporate Social Industry Power supply Environment Responsibility Reporting Guidelines development Guidelines to the State-owned Enterprises n friendliness International o CTG convened its The access of the CTG’s website P Directly under the Central Government on i a Hydropower is workers’ congress on Feb saw a remarkable rise compared with r Fulfilling Corporate Social Responsibilities v ti Association r 1, assessing and the previous year. The site's traffic c e i Sustainability discussing annual report added up to more than 1.2 million, p Positive influence Industrial p a Spotlights of social groups Guidelines u for 2012. and the clicks surpassed 4.5 million. t i Reputation on society code/social s Contributor o f Value keeping and n o Supervision responsibility appreciation t r Operation Provinces i compliance standard Supervision and g h Employees and cities in the g examination h Media focuses i Protection of labor Compliance Yangtze River Basin t Public focuses R rights and interests Finance operation Flood control and Salary and welfare drought relief Career development Improvement CTG arranged for Influence on CTG Social concerns in shipping large interviews of Relocation central and local Clients of people mainstream media Substantial CTG held press Synergetic development from reservoir areas dubbed “walking into conferences and Cooperation and test matrix Coordinating with the Xiangjiaba meetings for planning mutual benefits government to relocate hydropower station”, schemes, jointly with Stable and safe Transparency immigrantsPromotion of publishing relative power plant and grid electric energy immigrants' sustainable construction development information. High Quality of projects management.

Clean electricity Flood control and drought relief Community development Community Environment

Intensity of interested parties' concern Charity Ecological protection Relocation of Fighting climate change In August 2012, CTG CTG received almost Promotion of economic Energy saving and immigrants published “Annual 50 interviews of public development emission reduction Local procurement biodiversity Fighting climate Report on Environment media and camera change Protection” the seventh Supplier management crews from all walks of Partnership Human rights Industry report of this kind, life, accumulatively Fair operation protection Energy saving and Fair competition demonstrating emission reduction Shipping more than 500 Accountability Promotion in technology objectively its Charities Employee training and development reporters and in purchasing Involvement in establishment performance in of industrial codes and standards photographers had and mutual benefits environmental Safety in production visited the Three Occupational health protection. Gorges. intellectual property protection Feature programs were produced for CTG published 52 issues of “China Salary and welfare promotion and advertising the Three Gorges News”, 13 issues of project, including “China Three “China Three Gorges” magazine; and Gorges”, “In the Three Gorges”, China Three Gorges Construction Compliance with laws Communication with employees “China Three Gorges Project”, etc. Yearbook (2011 edition). and rules Technology and management innovation Democratic management

Public policy

Right to know Low High Strategic importance for CTG Transparency Construction System

Selection of Substantive Topics China Three Gorges Corporation China Three Gorges Corporation 16 Social Responsibility Report 2012 Social Responsibility Report 2012 17

Chapter of Operation 01 Bringing into Play the Project’s Comprehensive Benefits

The Three Gorges Project has multiple functions in flood control, electricity generation, navigation improving, drought relief and water supply, etc. As the owner of the Three Gorges Project, CTG shoulders special responsibility for the society and public well-being. Ensuring safe and stable operation of the Three Gorges Project and fulfilling its comprehensive benefits is the top priority of our work. We will also apply the concepts and experience from the construction and operation of the Three Gorges Project into the developing of the hydropower resources on the lower reaches of the Jinsha River to ensure that every hydropower project of CTG be operated for a long term in a steady and effective way. Public Global Public Operation Construction Environment Migration Employees Global Employees Migration Environment Construction Operation 18 Welfare Presence Presence Welfare 19

Flood Prevention 10 minutes 50 % The whole process of Up to 50 % of the Yangtze upper With the completion of the Three Gorges Project, the flood prevention capacity in the most information collecting, reaches are available for processing and transmission information collection, vulnerable Jingjiang section at the middle and lower reaches of Yangtze has been raised can be completed within 10 measurement and transmission minutes from once in ten years to once in one hundred years. In the flood season of 2012, the project Automatic withstood the largest in-bound flood peak with 71,200 m3/s since it was completed in nine hydrologic data years. The intercepted flood water amounted to 22.84 billion m3 accumulatively. Measured monitoring and reporting system by the benefits from reducing damage cost incurred by flood, the economic benefits from 5 provinces and cities 566 flood control in 2012 were equal to RMB 28 billion. With the completion of the Xiangjiaba A network that covers 5 566 telemetric stations have provinces and cities as Hubei, been built on our own Hydropower Station in 2012, the reservoir capacity for flood control in flood season reached Sichuan, Chongqing, Guizhou 903 million m3, thus directly reducing the inbound flood to the Three Gorges Reservoir and and Yunnan is available for automatic collection and enhancing the flood control capacity of the middle and lower reaches of theYangtze River. transmission of hydrologic data

＊ Data source: The Economic and Social Benefits Evaluation Report for TGP at the Trial Water Storage Stage by the Chinese Academy of Engineering (CAE)

Unit: cubic meter/second Drought Relief 80000 Frequent droughts occurred in the Yangtze River Basin. Based on the water inflow from 70000 upper reaches and demand of middle and lower reaches for water supply, stored water in 60000 the reservoirs is regulated accordingly for outflow discharge to compensate water supply of 50000 the lower reaches, and also to meet the water needs for shipping, industrial and domestic 40000 use. From January 1 to June 10 in 2012, we carried out the fourth water supply regulation

30000 since the 175-meter trial water impoundment of the Three Gorges Project, which has accumulatively supplied 21.5 billion m3 of water to the lower reaches. 20000

10000 Total water consumption of

0 47.36 million people on a yearly basis＊ At 2:00 on July 7 At 20:00 on July 12 At 20:00 on July 24 At 20:00 on September 3 Accumulative supplied amount of water to 2012 Equivalent to Irrigation water needed for Reservoir 56000 55500 71200 51500 inflow rate reached 51.81 million mu (or 3.45 million hectares) of crop land＊ billion cubic Reservoir 40600 41600 44100 26000 outflow rate 21.5 meters

Aggregate water consumption of Beijing for 6 years＊ A Comparison Between the Inflow and Outflow Rates of the Three Gorges Reservoir in 2012 Flood Season On July 24, the largest flood peak passed through ＊ China Water Resources Bulletin in 2011: In 2011, the national per capita water consumption averaged 454 cubic meters, 415 cubic meters per mu (1 mu is approximately 0.067 hectares) for actual cropland irrigation and 198 liters/day for a citizen's living needs including water the Three Gorges consumption for public facilities. Project since it was ＊ Beijing Water Resource Bulletin in 2011: In 2011, the total water consumption reached 3.6 billion cubic meters on an annual basis. built. At the night when the Peak arrived Wuhan (the city which suffered severe damage from the flood in 1998), Wuhan citizens were having fun in water by the Yangtze River. Public Global Public Operation Construction Environment Migration Employees Global Employees Migration Environment Construction Operation 20 Welfare Presence Presence Welfare 21

Navigation Condition Improvement Clean Electricity Supply

In 2012, the With the completion of the Three Gorges Project, shipping in the Three Gorges reservoirs We adopt a refined management mode for hydropower stations, and supply sufficient operation and at the middle reaches of the Yangtze River in drought seasons has been significantly green electricity to drive China’s economic growth and social progress. By 2012, the last performance of improved, boosting the sustained and robust growth of the shipping in the Yangtze River. two generating units in the Three Gorges Power Station were put into service. All the 34 Three Gorges The shipping volume along the Yangtze mainstream increased by 13.5% on a yearly basis generating units with a total installed capacity of 22,500 MW had been operating for 711 Ship Locks on average, which was 3 times than that of the Mississippi River in the US, 4 times than that hours with full load and the annual electricity production reached 98.1 TWh, a record high of the Rhine in Europe, ranking the world top in terms of inland river shipping volume over since its operation. The Xiangjiaba Hydropower Station was put into service in November the past 6 consecutive years. 2012 and the accumulated power production by the year end reached 1.57 billion KWh. 9,713 times Operation frequency To make the best use of the navigation improvement benefits of the Three Gorges Project, The Three Gorges-Gezhouba Cascade Hydropower Stations, located at the center of the ensure safe, smooth and efficient operation, CTG made the operation and management China’s power grid, has a huge installed capacity and supplies electricity primarily to the manual for large-scale ship locks, first of this kind in China. regional power grids in Central China, Eastern China and Southern China. The covered area includes 8 provinces and 2 municipalities. The Xiluodu and Xiangjiaba Hydropower Stations 44 thousand ships passed are the key national power sources under the “East-West electricity transmission” plan, making the covered area far more extended.

244 thousand passengers passed The Yellow River Beijing

million Electricity Electricity 91.49 tons of Covered reaches transmission range transmission range cargo passed 500 km 1000 km Lanzhou

Zhenzhou The Three Gorges Hydropower Station

Yichang Chongqing Shanghai Xiluodu Hydropower Station The Yangtze River Gezhouba Hydropower Station

Xiangjiaba Hydropower Station Kunming

By 2012, the cargo passing the Three Gorges ship lock had reached 91.49 Electricity Recipient Areas million tons China Three Gorges Corporation China Three Gorges Corporation 22 Social Responsibility Report 2012 Social Responsibility Report 2012 23

Chapter of Construction 02 Dedication to Quality Projects

The large-scale projects of CTG under development and construction such as Three Gorges, Xiluodu, Xiangjiaba are the key projects with great influence on national interests and peoples' living, involving a huge investment, long construction period, large installed capacity, complicated technology and wide influence.

We push for high-level plans and designs taking into account as a whole the acceptance and affordability of the economy, the society and the environment, striving to build safe, reliable, and environmentally friendly dams of fine quality, and ensure that projects satisfy intended functions and completely fulfill consolidated benefits. Public Global Public Operation Construction Environment Migration Employees Global Employees Migration Environment Construction Operation 24 Welfare Presence Presence Welfare 25

Ten drop shafts of 23*17 meters made up the drop shaft group upstream of Phase-two First-class Engineering Design longitudinal cofferdam. The maximum sinking depth is 57 meters, with a scale ranking top in the projects of the same kind. In the phase of planning and design, we take into account all related factors including Long belt conveyors were used to transmit the concrete aggregates, with a total economy, technology, safety, social effect and environment, adopt a strict standard for conveying length of 31 kilometers and a transmission capacity of 3,200 tons per hour. design, and pursue the harmony of techniques, economy and reliability in construction. So far, it is the only one in China.

Technical Feasibility

We attach great importance to upgrading our capabilities of innovation and technical service standard. With a vision that by 2015, CTG will have an investment directed to technology amounting to 3% of its aggregate sales revenue.

Not only in terms of total construction scale and installed capacity the Three Gorges Project ranks world top of hydropower stations, but also in advancement and competence of engineering technology. During the construction process, we had harvested more than 200 technical awards and hundreds of technique patents.

Item 2012 2011 2010 2009 2008 The long aggregate Patents applied for in the year 125 56 62 12 13 conveyor used at the Xiangjaba Patents authorized in the year 116 49 11 8 11 project

Statistics on Patent Application We developed a seismic monitoring system for the cascade power stations at the lower

Advanced technologies associated with computer, emulation, precise temperature control, reaches of the Jinsha River, which is able to monitor the natural tectonic or reservoir-induced satellite navigation, and information transmission were applied to the construction of the earthquakes above 0.5 magnitude, providing available information to reduce damage and Xiluodu Hydropower Station. This was a pioneering attempt to build digitalized project in casualty loss. construction of 300-meter high arch dam in China.

We conquered a series of technique challenges in the construction of the Xiangjiaba Social Recognition Hydropower Station: To reduce atomization from flood discharge, the bottom-flow dissipation was adopted as We adhere to creating socially approved projects by joining the government plan and a solution. This technology was leading in China for its separation of high speed water industrial development, and respecting wishes of the community. At the preliminary flow from the bottom floor. construction stage of Xiluodu Hydropower Station, we proactively learned about the current The main power house of the underground power plant on the right bank has a span of economic and social development conditions and the future plans of Sichuan and Yunnan 33.4 meters, one world’s largest spans for an underground power house. provinces, to ensure that the project was integrated into their own local development plan. The translational cable crane has a span of more than 1300 meters and an A-type main In the case of Xiangjiaba Hydropower Station, we reexamined the plan for the hydropower tower as high as 98 meters, so far the largest in Asia. reaches, carried out a general survey with respect to geological data, social stability and Single generating unit of the Xiangjiaba Hydropower Station has an installed capacity ecology, analyzed the market demand, and repeatedly discussed the feasibility and necessity of 800 MW, so far the largest in terms of unit capacity among the world’s hydropower of the project. projects under construction. Public Global Public Operation Construction Environment Migration Employees Global Employees Migration Environment Construction Operation 26 Welfare Presence Presence Welfare 27

In Shandong province, we continuously In Jiangsu and Zhejiang provinces, we set explored the land development modes up a photovoltaic plant in an area densely Emphasis on protecting the breeding of aquatic life in discharging mode selection adaptive to the cities that are exhausted of woven by rivers and brooks to form a resources. We built a photovoltaic plant on mode dubbed “Generating electricity on a collapsed land, making the best use of the upper reach and feed the fish on the In the feasibility study phase for the Xiluodu Hydropower Station, we did research into the the land resources instead of taking lower” to synchronize the fish farming and additional land otherwise. electricity generation. In addition to that, water temperature and found out that the flow discharge will lower the water temperature oxygen pumps used by the photovoltaic and thus change the natural distribution of water temperature at the lower reaches when the plan could also serve to supply additional oxygen for fish, shrimps, crabs and other station is running. This might affect the fish growth and reproduction at the lower reaches. breed aquatics in favor of production, thus achieving the “complementary effect of We increased nearly RMB 300 million to avoid disturbance to the ecological environment, fish-farming and photovoltaic generation”. Localization replacing the previously design of single-layer water intake with a multi-layer stoplog gate of photovoltaic solution to water intake. Compared with the single-layer design, the solution makes the temperature of discharged flow closer to the natural water temperature, approaching the In Inner Mongolia, we built a photovoltaic plant design In China's western areas, we always give plant on top of a vegetable greenhouse. As priority to developing large-scale power average temperature for critical fish spawning period, reduces the negative effects of flow the wave length of the light needed by the plants on deserts. Taking into crops was different from that required to consideration local needs for economic discharge, and maintains the original ecological environment for aquatic breeding at the generate electricity, electricity generation development and existing conditions, we and crop planting absorbed different parts identify projects carefully, to avoid any lower reaches. of the light. In this way they coexisted in negative influence on environment. harmony. Meanwhile, solar panels can be used to filter out and decline undesirable lights by reflection, for example, the Blue-Violet light needed for insect courtship , thus reducing insects to some extent and enhancing the crop output. Refined Project Construction

Quality and safety are the eternal themes for project construction. We implement an overall quality management, and continuously improve safety assurance system for production and 221 Environmental friendliness management as well as emergency response system. Contingency plans produced By late December We included the environmental protection in our project planning and design, increased in 2012, the the capital investment in the field, adopted new technologies and process to reduce in our Overall quality management environment maximum effort the negative effects on the environment, creating environmentally friendly 127times protection Management and control projects that are in harmony with our objectives of economy in energy consumption and other Emergency drills Management in all respects throughout the whole process Training of all employees investment had resources. developed accumulated up to Organization management: Preparatory stage: Set project All employees involved: Set up a quality management quality goals, and work out Launch skill training for quality committee responsible for quality management plan in operation 1.11 Emphasis on the impact on the environment and society in energy dissipation overall quality management accordance to project Interior auditors: Organize 459 billion Yuan mode selection Institutional construction: construction characteristics periodic training for quality million Yuan Revise quality management Construction stage: Hold management system regulations and form quality periodic quality management Managers: Trainings for quality Safe production Centralized flood discharge will lead to highly intensified water energy. Energy dissipation standards meetings in accordance to the management regulations, and investment In 2012 annual is required to protect the riverbeds, buildings, and other facilities at the lower reaches from Supervision and evaluation: advanced quality standards, share of quality management Carry out periodic quality and monitor real-time experiences investment for destruction by direct flush. In the preliminary design of Xiangjiaba Hydropower Station, inspection, and submit quality construction quality environment flip trajectory bucket approach was first adopted for its cost effectiveness, but this method inspection reports Completion stage: Multi-level acceptance check and control protection was likely to affect the living and production of the enterprises and the residents nearby by generating large volumes of spray as the dam body was close to densely populated areas. 60.56 To minimize the effect on surrounding areas due to flood discharge and atomization, we million Yuan increased our investment by RMB 1.7 billion to replace the original shoot mode with bottom flow dissipation method. Public Global Public Operation Construction Environment Migration Employees Global Employees Migration Environment Construction Operation 28 Welfare Presence Presence Welfare 29

At 8:00 a.m. Oct 30, upstream water Accountability in Purchasing on an Overall level of Three Gorges Complex Scale reached 175 meters, successfully We stick to honest and transparent operation, strictly regulate the purchase process by accomplishing the trial water storage pushing for transparent, fair and reasonable purchase, maintaining the partners’ legal rights goal for the year and interests, and ensuring that all the products supplied conform to the CTG’s engineering 2012. standard. Meanwhile we walk into the work site of the suppliers to analyze and advise on improvement of some problems arising from the production in terms of technology, workmanship, quality control and logistics.

Hold regular training and consulting workshops for our suppliers and contractors to progressively enhance their awareness with regard to social responsibility compliance

Essential safety In 2012, there were altogether 16 casualty accidents resulting in 15 dead and 7 injured management from the contractor side on our construction sites. After the occurrence, we immediately Carry out the performance* in organized the medical personnel for rescue, set up interior accident investigation panels, training for social responsibility 2012 held emergency meeting by gathering the participation units, made deep analysis and compliance 0 investigation about the causes of such accidents, seriously investigated and treated the responsible units and persons in charge, and took the measures of precaution and Incorporate Electricity safety accident rectification to avoid worsening the accident. Establish a social credit responsibility The occurrence of such accidents reflected that further improvement was required to fortify evaluation compliance in 0 our supervision over the contractors. We learned the lesson and reinforced safety monitoring system the contractual Large equipment clauses and inspection for the parties involved in the project construction, helping the contractors liability accident identify and deal with the potential safety hazards. In 2013 we will strictly control the tender 0 process by referring to bidder’s credit records, contract compliance and safety performance Bind bid winners to fulfilling contracts with In procurement contracts, apart from the explicit as critical factors for access permission; we will exercise strict control over the construction honesty through credit evaluation system stipulations for quality and price, the clause of Large accident social responsibility compliance including with casualty site, bring into full play self-discipline mechanism, so as to reinforce coordination and human rights, environmental protection, and safety management is also included. enhance the safety compliance of the contractors; we will strictly control the quality of our 0 workers to make all the staff gain access to training before they perform their duties, ensure Main measures for social responsibility compliance management in supply chains Accident involving that only the qualified employees are permitted to work with appropriate certificates, and personal death enhance the safety awareness of the personnel so as to prevent accidents from the source. We devote ourselves to building a new partnership with our suppliers, adhere to local procurement, and advocate proactively the cooperation with local suppliers and contractors 6 to boost local economy. We are continuously improving the communication and mutual General equipment failures visit system with our suppliers, holding regular meetings to introduce the CTG’s purchasing standard and cooperation conditions and find a solution on site to the issues of great * Safety performance statistics above include concern from suppliers, so as to maintain a healthy market order. the data of CTG and its subordinate units, but excludes that of the contractors. China Three Gorges Corporation China Three Gorges Corporation 30 Social Responsibility Report 2012 Social Responsibility Report 2012 31

Chapter of Environment 03 Maintaining the Ecological Balance of Nature

CTG has developed the environmental protection concept covering full reaches, full life cycle, oriented by science and technology in project construction and operation, thus actively evaluating the environmental influence, implementing relevant mitigation measures, and fully tapping the projects’ potentials to get in ecological and environmental benefits. We carry out communications and cooperation with an open mind, and are always ready for supervision of society. Public Global Public Operation Construction Environment Migration Employees Global Employees Migration Environment Construction Operation 32 Welfare Presence Presence Welfare 33

Greenhouse gas study

Conservation of animal habitat

Biological diversity study

Preservation of plants Conservation of soil and water

Conservation Preservation of fish of cultural relics

Illustration of environmental protection in the reservoir and dam areas

Conservation of Biological Diversity

We have made great efforts to keep the diversity and continuity of species through in-situ conservation, ex-situ conservation, building genetic resource banks, and by studying and applying key technologies for environmental protection.

We committed a special fund to building a nature reserve in the Three Gorges reservoir area to implement "relocated" conservation for 273 special plant species below the flooded line. In 2012, by simulating the wild environment, we extended an extra care for 7,275 An ancient tree introduced rare plants in 67 species. Most under in-situ conservation of them have adapted to the local climate, A seeding of rubber tree (ficus elastica), a rare Adiantum reniforme var. sinense, a rare plant on the left bank and some even produced seeds for the species,cultivated in the Three Gorges Nursery species grown in the Three Georges area of Xiluodu Research Center construction area first time. Public Global Public Operation Construction Environment Migration Employees Global Employees Migration Environment Construction Operation 34 Welfare Presence Presence Welfare 35

Rare Bird Protection in Xiangshui Wind Power Plant in Jiangsu 210,000 Chinese Sturgeon Spawns Acquired by Fully Artificial Reproduction

Construction Period Chinese sturgeon is one of the rare fish Outsource the soil to avoid damage to mud flats and vegetation of the natural species native to China, and also one of preservation zone the most primitive species existent in the Reserve more culverts on roads in the construction site to satisfy water exchange and world. On 19 November 2012, the fourth the migration of small animals success in a full artificial reproduction for Restoration of the vegetation on the temporarily occupied land by sowing mixed grass Chinese sturgeons was achieved and 210,000 fertilized eggs were obtained, the seeds highest reproduction scale in history, which Minimize the width of newly built roads, and try to use the original roads had attained to the natural reproduction In October 2012, Optimize the draught fan layout, and try to avoid the estuary areas we launched an level of this species. Ever since 1984, we Use underground buried power transmission lines, to reduce overhead circuits ones in activity continuously released Chinese sturgeons to known as avoidance of possible crash by immigrant birds Yangtze River for multiplication every year. "Promotion of Fish Intensify observation of birds, carry out publicity and education of legal knowledge for Protection on By the end of 2012, we had completed Campus", migrant bird protection to construction workers, set up billboards on and around the 54 releases and over 5 million Chinese organizing students construction sites to advertise bird, fish and natural vegetation protection; strictly inhibit to participate in sturgeons were released on an accumulated and experience the the capturing of any bird or other wildlife basis. release. Operation period Fan blades take on warning colors to ensure that the flying birds can immediately recognize the safe routes and reduce the chance to crash the fan blades Set up migrant bird monitoring and rescue stations Leading measures taken for fish protection Supplement the bird with the feed for wintering together with the management office of Developed research into artificial reproduction technology for rare fish species, the conservation area tendency of environment variation in preservation zones and its influence on fish and evaluation of effect in protection During the migrant birds’ large-scale migration, protection measures are carried out Technical Built “Hubei Province Key Laboratory of Three Gorges Project fish resources research protection” when throngs of migrant birds flock to relax at the wind power plants and the areas Successfully completed fully artificial reproductions of Chinese sturgeons on 4 nearby occasions Achieved artificial reproduction of leptobotia elongate for the first time

Set a date for rare fish release, and built a release site in Yichang for rare fish species native to Yangtze Planned and built a release site at Wudongde Hydropower Station for rare fish Multiplication species, and an experimental farming base at Yibin for coreius guichenoti breeding and Set up back-up parent fish rearing echelon for procypris rabaudi and megalobrama pellegrini reintroduction Continuously released rare fish species such as Chinese sturgeon and acipenser dabryanus and catostomidae

Started a research into reproductive biology and hydrological requirements Ecological associated with the four major Chinese carps (black carps, grass carps, silver carps and common carps, which are widely bred as cash species) regulation In 2010 the ecological regulation achieved on 2 occasions with respect to the reduction of the four Chinese carps in the Three Gorges reservoir

Improved the function of two national science popularization bases respectively in Yichang and Yibin by preparing and displaying fish protection materials and picture albums Science Carry out science popularization education on campus, organized students and popularization volunteers to participate in and experience release activities Published thematic articles in such journals as China Three Gorges and China education Aquatic Wildlife Board Chairman Special report on the protection of Chinese sturgeon at the program of 30 Degrees North Latitude, one of CCTV's documentary series. of CTG, Cao Guangjing releases Chinese Sturgeon Public Global Public Operation Construction Environment Migration Employees Global Employees Migration Environment Construction Operation 36 Welfare Presence Presence Welfare 37

Preservation of Cultural Relics Sustainable Utilization of Water Resources

Yangtze River Basin is one of the most important cradle for the Chinese civilization. The site With a panoramic view of the whole basin, we have established a centralized water of the Three Gorges reservoir area abounds in cultural relics. We appropriated a special resources information system to monitor the water quality and maintain real-time fund to take necessary measures for their preservation in coordination with the State. With understanding of the water quality change, and take preventive measures in a timely the progress of the project construction, cultural relics which spread over a zone up to 168.2 manner. square kilometers will be submerged, as they fall in the expected reservoir inundation area of Xiluodu and Xiangjiaba Hydropower Stations at the Jinsha River reaches. We therefore Main measures for preservation of water quality worked out a plan for preservation of the cultural relics from the hydropower project, and entrusted archaeological institutions to start a rescue excavation to them. Establishment of an advanced automatic system for hydrologic data collection and Water quality transmission to monitor water quality by indices of flow rate, temperature, and monitoring suspended solids

Investment in anti-pollution projects such as landfills, sewage treatment plant and Prevention sewage pipe network from pollution Inhibited dumping of wastes into reservoirs Filtration and disposal of the sewage and waste water discharged to reservoirs

Prevention Overall establishment of monitoring and pre-warning system Monitoring of primary sources of pollution from algal Enhancement of fluctuation, steady motion and variation of water in the tributaries by Zhang Fei Temple, bloom* regulating reservoirs a historical and cultural relic of ＊ Algal bloom is a natural ecological phenomenon of algae in mass propagation, and a symptom of over nutrients in a water body, due largely to massive inflow of industrial or agricultural waste water and life sewage which are rich in nitrogen and phosphorus. In this condition, blue alga, great importance, green alga, and water shield become the dominant population in the water body, and make the water appear blue or green. known as "wonderful scenery in Sichuan and well- We apply advanced facilities to recover and reuse the waste or make its discharge in embellished resort", was integrally compliance with the standard. In 2012, the composite utilization ratio of waste water moved to a new site produced from the artificial aggregate processing system of Xiluodu Hydropower Station at the upper reaches of Yangtze River, 32 reached 98.9%; station in 2012, up to 7.30 million cubic meters of industrial waste water was km away from the collected and processed in the construction area of the Xiangjiaba Hydropower Station, with original site. zero emission; also in the administrative area of the Three Gorges Project, zero emission of waste water was achieved.

ShibaoZhai Temple, first built under the reign of Emperor Shenzong of the Ming Dynasty, is the only multi- tiered column- and-tie wooden construction existing in China. It was preserved in The sanitary sewage site by the method treatment station of "consolidating in hydropower the slope to back project construction the walls". area Public Global Public Operation Construction Environment Migration Employees Global Employees Migration Environment Construction Operation 38 Welfare Presence Presence Welfare 39

Promotion of Energy Conservation and Response to Climate Change

Emission Reduction By increasing development and use of hydro energy, we aim to raise the proportion of hydro energy in primary energy consumption and reduce carbon dioxide emissions. In 2012, We make great efforts to promote energy conservation and emission reduction. For every hydropower generated a total power of 116.3 TWh, making up 14% of the total national link in construction and operation, we seek to reduce resource consumption and maximize hydropower generating capacity. the use of resources by taking full advantage of new equipment, new materials, and new

technologies; and efforts are also made to strictly control and reduce the emission of Annual Reduced Reduced Reduced pollutants, and to properly dispose of the emitted pollutants. In 2012, the Three Gorges Name of Generating carbon dioxide sulfur dioxide smoke and dust Power Station Capacity emissions* emissions emissions Project (Dam Area) was awarded a "National Ecological Civilization Project for Soil and (100 GWh) (10,000 tons) (10,000 tons) (10,000 tons) Water Conservation". Three Gorges - GezhoubaCascade 1147.49 8517.92 102.23 28.80 Part performance in energy conservation and emission reduction in 2012 Power Stations

Approximately a total power of 243.08GWh, an equivalent of 7.62 million Yuan in power Xiangjiaba 15.72 116.71 1.40 0.39 Hydropower Station fare was saved in the construction area of the Xiluodu Project. 1,130 tons of household waste treated with landfill (including household waste from Summation 1163.21 8634.63 103.63 29.19

surrounding towns and villages) in Three Gorges Complex Management District. ＊ Calculation formula for CO2 emissions WCO 2 = Q × ECE × EF, it refers to CO2 emissions (tons); Q refers to generating capacity (100 GWh); Ece refers to power supply coal consumption, taken from the published value of the State Grid Corporation of China (SGCC) in 2012, 32,600 12000 tons of household waste treated with landfill in the construction area of Xiluodu tons (CO2) / (100 million kWh); EF refers to the CO2 emission factor of the standard coal, calculated by 2.277 tons of carbon dioxide emitted by per ton of standard coal (China's National Climate Change Programme 2007). Hydropower Station. Effect of Hydropower Emission Reduction of CTG in 2012 3725 tons of household waste treated with landfill in the construction area of Xiangjiaba Hydropower Station. We actively conducted the research and development of new energy, such as wind Wind Power Treatment rate of developed land was 99.3%, treatment of soil erosion was 99.1%, energy and solar energy. Throughout 2012, the completed wind power projects amounted recovery rate of grass and forest was 98.7%, coverage rate of forest and grass was 1.9826 to 440MW, with 340MW already in production; photovoltaic projects under construction 56.0%, which met the Class A of the national soil erosion prevention and control. TWh amounted to 200MW, with 20MW already in production; and there were 13 newly-added The main construction area of Xiluodu Hydropower Station had an artificial green area registered CDM projects. Wind power, photovoltaic power, as well as small and medium- Solar Power of 1,184,800 square meters, 68,100 trees, and 288,800 shrubs. sized hydropower stations generated nearly 2.8TWh accumulatively, which, compared with Generation In 2012, the Xiangjiaba Project Construction Department canceled two slag yards by coal-fired thermal power of the same generating capacity, saved roughly 1.6 million tons of optimization, reducing use of farmland area of 863 mu (roughly 575,333 square meters). 18.2 GWh standard coal, and reduced carbon dioxide emissions of about 4.2 million tons. Small Hydropower Power

796.6 GWh

In 2012, the 10 MW Photovoltaic Power in Phase I of Qinghai Golmud Photovoltaic Power Station, CTG's first photovoltaic power generation project, started gird connected Topsoil Recycling operation. China Three Gorges Corporation China Three Gorges Corporation 40 Social Responsibility Report 2012 Social Responsibility Report 2012 41

Chapter of Migration 04 Promotion of Sustainable Development for Migrants

In the innermost heart of each Chinese, there is always a corner for their unforgettable homeland, it must be a long lasting and challenging matter to depart from the homeland that witnesses life of generations and to rebuild a new living and relationship network, whether for individuals, the national or the society as a whole. We are concerned about the sustainable development of the migrants and are committed to helping them with various problems in the relocation process, seeking to benefit migrants from hydropower development in a sustainable way. Public Global Public Operation Construction Environment Migration Employees Global Employees Migration Environment Construction Operation 42 Welfare Presence Presence Welfare 43

Coordination with the Government and Doing Well in the Resettlement Work

In accordance with relevant Chinese laws and regulations, the local government is the subject of liability of the relocation and resettlement in water conservancy and hydropower construction projects. CTG, as a hydropower project owner, gives full support to the government work in migration planning and resettlement; invests in relocation and resettlement of migrants, and seeks to elevate support standard to help migrants improve their production and living conditions.

Respect for Migrants' Willings

By timely disclosure of important information regarding related projects and compensation and subsidy policies, we allow migrants to select a practical mode for resettlement according Communicating with villagers on to their own conditions. Throughout the project planning and implementation of Xiluodu project construction and Xiangjiaba Hydropower Stations, we adhered to the work guideline of "try to avoid or and migration. reduce impact of project construction on migrants", while actively exploring a mechanism of "migration before construction" in the hydropower development of Wudongde and Baihetan, taking into full account the coordinated economic, social, and ecological environmental High Standard Construction of Infrastructure development in the reservoir and dam areas. In planning and building counties and towns to take in migrants, every possible effort is made to reserve enough space for long-term development of reservoir area counties and towns Scientifically conduct physical indicators surveys Actively communicate with local governments and in future, granting migrants a clean and healthy living environment that meets the need for Scientifically plan and design relocation & migrants resettlement Invite migrants and governments to visit barrage areas future development. In 2012, we completed the construction of two new counties, Pingshan Carry out internal and external supervision and Apply informatization to management of migrants County in Sichuan Province and Suijiang County in Yunnan Province; the construction of 11 assessment Transparency Treat residents long living in barrage new towns, such as Xinshi and Xintan, as well as housing construction of more than 5 million areas equally square meters. Scientific approach

Long-term Putting Migrants in Heart and Launching Pay continuous attention to consideration Respect migrants’ will and improvement of migrant’s life resettle them well with various Community Assistance Pay continuous attention to migrants Human- channels, forms and methods ability in wealth creation Pay attention to the development of orientation We never stop helping migrants who have moved out, and we persist in helping them, Pay continuous attention to migrants’ disadvantaged groups mental adaptation Pay attention to the development of women although it is not required by laws and regulations. In developing and constructing Xiluodu Ensure fund for supporting migrants Pay attention to the development of leftover children and Xiangjiaba Hydropower Stations, we gave support to the construction of medical, health, Pay attention to the development of psychological guidance for migrants water supply, and other public service facilities in the reservoir areas; we paid attention to migrants' spiritual and cultural demand, and education development in these areas, doing as Working Principles for Relocation and Resettlement of CTG much as we could to help migrants create new and beautiful life. Public Global Public Operation Construction Environment Migration Employees Global Employees Migration Environment Construction Operation 44 Welfare Presence Presence Welfare 45

To help children of migrants gain equal access to education is to help migrants achieve sustainable development. We support education for immigrants mainly from the following We help improve gerocomiums and built service stations for empty three areas of work, in specific, increasing access to education, improving education quality, nesters, making them less lonely and enjoy a nice life in twilight years. and making more learning opportunities available to the disadvantaged groups, and by funding Project Hope and hardware construction in schools, we play our part in contributing to the development of education in reservoir areas. In 2012, we donated teaching equipment to five schools in Sichuan Province, helping improve their teaching facilities; in the reservoir Respect We put in over 50,000 Yuan to and support fund 29 seriously sick migrants areas of Xiluodu and Xiangjiaba Hydropower Station projects, we spent 6.59 million Yuan the aged in the reservoir areas of helping nearly 2,000 students from poor families. Xiangjiaba Hydropower Station. We put in 95,000 Yuan to help Zhaotong City and Public For 3 straight years from Yongjia County of Yunnan services to 2013, we will spend 5 million Province build “village Cultural Medical Yuan every year in helping halls”, facilitating migrants in improve life activities services students from poor migrants’ better carry out mass of migrants families and seriously sick activities and labor skills in 2012 migrants in the reservoir areas, training. and in supporting the building of infrastructure such as maternity Drinking and child care centers.. facilities

We put in 12,000 Yuan to help Shulou Inviting children to visit and learn about construction of Xiangjiaba Hydropower Station, and participate Middle School build drinking facilities, cultural and arts activities solving the problem of drinking water for 1120 teachers and students in Shulou Middle School.

Caring for left-behind children in the reservoir areas

Many migrants in the reservoir area of the Xiluodu Project work outside all year round, In 2012, we funded Yongshan County of Yunnan Province in editing and publishing leaving the senior people and relatives to take care of nearly 800 left-behind children, whose "Hardship and Friendship Along the Way" and "Selected Ethnic and Folk Album of Yongshan life, education and growth have become a conspicuous issue. To solve the problem, in the County", two picture albums of singing performance by national minority in the county; we reservoir area of the Xiluodu Project, we carried out the activity of "caring for left-behind also funded Leibo County of Sichuan Province in editing and publishing "Yi Folk Song Album children in the reservoir area”, in which we gave stationery and solatium to 160 left-behind of Leibo County" and "Selected Yi Folk Song Album of Leibo County". children in the reservoir area and built activity center for left-behind children there.

Visiting left-behind children and sending gifts for Children's Day

In celebration of joyous festival by suona Horn Public Global Public Operation Construction Environment Migration Employees Global Employees Migration Environment Construction Operation 46 Welfare Presence Presence Welfare 47

In 2012, we made employment arrangements in Three Gorges Dam Site scenic spot and Supporting Migrants and Helping Them Build hotels for more than 600 migrants from surrounding towns and villages, and in addition, we Self-reliance and Self-improvement employed hundreds of local migrants in the construction areas of Xiluodu and Xiangjiaba Hydropower Station Projects. The hydropower relocation areas are mainly feature the traditional agricultural economy-oriented production and lifestyle, which are weak in industrial base, and have By the end underdeveloped commodity economy. We are committed to helping migrants improve of 2012, our their employment skills, especially women's ability in wealth creation, creating as many accumulated fund employment opportunities as possible. put into "support fund for women's We provide special funds for employment of migrants, and coordinate with the governments development in the reservoir areas for vocational education and skills training. In 2012, we launched skills in reservoir training projects for migrants in 5 counties. We donated one million Yuan to "Seed Fund", a migration areas" village-based poverty alleviation project in Yibin City of Sichuan Province, focusing on the reached self-development capacity of poor farmers. Migrants working in the standardized workshop Flower base in Letianxi Town, Yiling District of of Fuyuan Medical Co., Ltd, one constructed with Yichang City, Hubei Province 20 million Yuan external aid.

"Women's We believe that, provided with adequate resources, women are able to help their families homes" were built and communities out of poverty. In 2011, CTG provided 30 million Yuan, jointly established in settlements "support fund for women's development in reservoir migration areas" with the All-China or concentrated Women's Federation, a special fund for developing support projects for reservoir migrants, residential which is supporting projects of women's vocational skills training, mother cellar, petty loans districts for for women, and mothers' health express. By the end of 2012, through "support fund for migrants from women's development in reservoir migration areas", we had supported dozens of projects for reservoir areas migrant women, which made significant achievements in promoting women's employment skills and improving the health of women. 18

Mothers' Health Expresses Buses were purchased Skills training for migrants for women from reservoir areas

In order to provide more employment opportunities for migrants, we, on one hand, directly 8 offer them a large number of job opportunities by driving and calling on our companies and other units in the construction areas to give priority to migrants in recruitment; and on the

other hand, we also help reservoir and dam areas positively develop tertiary industry, and Organizing 60 female migrants from Xiluodu Hydropower Station reservoir area visit Three Gorges improve investment environment to attract other businesses to invest there and create jobs. Dam Site, where learning and exchanges were conducted with migrants of the Three Gorges Project. China Three Gorges Corporation China Three Gorges Corporation 48 Social Responsibility Report 2012 Social Responsibility Report 2012 49

Chapter of Employees 05 Establishment of a Harmonious Labor Relation

To our employees, migrants and skilled labors employed by contractors, we have always been committed to granting them a more dignified and more meaningful job, a more fulfilling and more valuable life. Public Global Public Operation Construction Environment Migration Employees Global Employees Migration Environment Construction Operation 50 Welfare Presence Presence Welfare 51

Females in Health and Safety positions of Work with Dignity management We show full respect for talented people and their labor, and are committed to providing our We actively promote the construction of a safety management system involving quality, Employees' 11 % personnel with equal opportunities and strong protection of their rights and interests, ensuring that environment, occupational health, and we work hard to bring occupational diseases rate of injury in all personnel in CTG work in a free, just, safe and dignified working environment. under control at source, establish a self-query system for employees' electronic health employment Employees of record, and launch propagandas and trainings concerning occupational safety and healthy national minority 0 % lifestyles. More attention is paid to the health of our personnel working at the production and % Fair Treatment construction lines. Available in the production sites are safety protection facilities to eliminate 4 Employees' rate By adhering to the principle of equal employment and fully implementing Labor Law and other pollution and toxic and hazardous substances; also available there is a professional team of occupational Female related laws and regulations, we are opposed to any discrimination regarding religion, race, to give health safety guarantee, which is ready to provide timely medical assistance for employees' rate diseases gender, region, skin color, age, and disability, and what we practice is equal pay for equal work. constructers with outbreak of diseases, and which can, when necessary, quickly transfer of returning By the end of 2012, there had been a total of 15,634 on-the-job employees in CTG, with a 100% them to a place with better medical conditions for medical treatment. 0 % to work after labor contract signing rate and no major labor disputes. maternity leave 100 %

Above 55 Junior college years old graduates Technical 46-54 secondary Male employees years old 2.7% Below 35 23.2% 68.4% school graduates 16.7% years old 22.5% 53.6%

Workers at the 27.0% 14.2% 31.0% production 31.6% High school 36-45 working safely Female employees years old Undergraduates 9.1% graduates and below with protective Graduates and above equipment

Employees’ gender structure Employees’ age structure Employees’ educational background structure Dialogue and Communication

We are happy to listen to the voices of our personnel and concerned about their demand, Employees' Employees' rate Salary and Welfare of participation in and we provide opportunities and channels for mutual understanding and communication. membership rate We practice disclosure of corporate affairs, and advance the building of Labor Union. social insurance We follow a differentiated salary system that gives priority to efficiency while taking equity 100 % principle into account, offering multi-layered welfares. In addition to various social insurances In addition, we collect rational advice from employees in two forms, the proposals of % 100 for all employees, such as the basic old-age pension, basic medical care insurance, employees' representative and mailbox of the Chairman of the Labor Union, and make unemployment insurance, employment injury insurance, maternity insurance, we also timely response to them. In 2012, before adoption of a range of operation and management Employees' established our enterprise annuity for personnel to purchase enterprise supplementary systems concerning employees' interest, such as the labor contract, the auxiliary labor annually average insurances like the supplementary medical insurance and medical assistance to serious management, incentives and disincentives for employees, we had solicited wide opinions paid holidays illness. from employees, which enhanced employees' democratic participation in policy formulation. 8.6 days Public Global Public Operation Construction Environment Migration Employees Global Employees Migration Environment Construction Operation 52 Welfare Presence Presence Welfare 53

While providing open and fair internal Senior technical Senior Realization of life Value positions managerial promotion channels for our employees, we positions also make detailed career development Number of We treasure each employee who selects CTG, and do our best to provide each employee

planning for them, and follow up personnel Professional technical personnel Administrative Managerial and employees with a vast space and platform, enabling them to enjoy opportunities for a brilliant life. achievement of the planned objectives, trained We encourage our employees to set up the concept of lifelong learning, and oriented by actively helping employees obtain employees' needs and business needs, we provide profuse training opportunities ranging professional planning experience, and 173,597 from administration, technology to management, which help to stimulate their development build up confidence in career development. potentials. We pay great attention to the inclusiveness and adaptability in the corporate Moreover, through internal work shift and Fund put into culture and we encourage the establishment of distinctive Mother and Child cultural systems, overseas exchanges, we aim to increase employees' emphasizing and advocating the professional ethics of "loyalty, dedication, diligence, and employees' adaptability in cross-sectoral training integrity". and cross-cultural exchanges. The "H"-shaped career development 40 path supporting the two-way coordinated Training on Training on development of professional technical million Yuan training confidentiality personnel and managerial and administrative skills Training on Training on personnel document finance writing

Training on Training on Training on informatization contract Training on project management statistical " I have been working in Xiangjiaba Project for over 6 years. The dam grows higher day after management management day, and now it has its gate opened to store water, and to me, it is really something exciting.

Training on Training on Over the past 6 years, I have turned from a student into an engineer, and from a boy into a quality Training on new management safety employees father, I am growing with the dam. " system

—Gao Peng, joined CTG after graduation from university in 2006, now the Deputy Corporation- Training in Director of Dam Section Devision of the Xiangjiaba Project Construction Department. level class Basic-level class other areas Online learning

Comprehensive promotion in technical expertise, business skills and leadership Working Together to Create a Happy CTG

We continue to advance the construction of happiness project, so that employees can enjoy a comfortable life while working free from care, and can have a wonderful life while pursuing their career development.

We create agreeable working conditions and environment for each of our employees, while paying attention to their family well-being. In the building of four bases in Beijing, Yichang, Chengdu, and Kunming, we helped solve practical issues, such as housing and children's schooling for employees who have their jobs transferred afar, as required by their work. We offer condolences to model workers, retired workers, and offer help to needy employees by granting them relief funds and living allowances.

Outdoor training of qualities and abilities for new recruits of 2012 Public Global Public Operation Construction Environment Migration Employees Global Employees Migration Environment Construction Operation 54 Welfare Presence Presence Welfare 55

Activities of Employees' Shadow Boxing Activities of Employees' Winter Swimming Association Association Workers for construction of Xiling Yangtze River Bridge

We urge and support contractors in encapsulating soft factors into the management areas of migrant and skilled labors, including occupational health, skills training, cultural life, and more. And in addition, by cooperating with contractors, we adopt unified management approach as other constructers in the construction of hydropower projects of CTG, from a variety of aspects, including employment, accommodation, training, labor security, wages, physical examination, and commendation.

Organizing women's volleyball competition Performance of Employees' Beijing Opera Unified employment Unified accommodation Unified training Association

Respect for Migrant and Skilled Labors

The group of migrant and skilled labors has already become the backbone in the

construction of hydropower projects. In our long-term cooperation and contact with migrant We sign labor contacts with migrant workers and We allocate articles of daily use in a unified manner; We adhere to the principle of training before starting establish dynamic management files for them; we strengthen management for public facilities; and work; carefully carry out training activities such as law and skilled labors, we have noticed an ongoing change in their knowledge structures and standardize employment of the subcontract teams, promote property management and service level in popularization education, system education, skills and have employment standards unified in the migrant workers’ campsites in the construction areas. education, and safety education; strengthen the three- psychological characteristics. Migrant and skilled labors, after solving the problem of food construction areas. level education and training for migrant workers (project and clothing, have a more urgent demand of "positioning themselves" as they need more department, subcontract team, and operation team); and in addition, we also carry out pre-informing activity, respect and recognition. In the construction sites of CTG, we advocate replacing the title of involving before-work, in-work, and after work "farmer worker" with "migrant and skilled labors", and changing the "transient's mentality"

(temporary residence for short-term goals, with no sense of belonging), in an effort to Unified labor protection Unified wage Unified physical examination Unified commendation training help them identify with their occupational roles and make a shift for industrial workers, and furthermore, we also call on contractors to help popularize the use of this title in other places.

Following the principle of “unified We establish and improve migrant We ensure that all migrant workers We value commendation of migrant planning, unified purchase, unified workers’ files; pay migrant workers’ to work for us start work physically workers, making them enjoy higher distribution, and unified use”, we wage fully and in a timely manner; and healthy; and we have good knowledge and higher social politics status. allocate labor protection articles, and set up a system to charge cash deposit of their healthy conditions. inspect the use of operators, making to protect migrant workers’ rights and timely correction when irregularities interest, in order to avoid failing to pay are found. migrant workers’ wage in time. China Three Gorges Corporation China Three Gorges Corporation 56 Social Responsibility Report 2012 Social Responsibility Report 2012 57

Chapter of Public Welfare 06 Dedication to Repaying the Society

CTG is enthusiastic about public welfare and charity, and addresses social issues from a strategic and systematic perspective. At the same time, we support and participate in community building by encouraging volunteer activities and provide volunteer services, practicing our long-standing social commitment with our actual actions. Public Global Public Operation Construction Environment Migration Employees Global Employees Migration Environment Construction Operation 58 Welfare Presence Presence Welfare 59

Helping Improve People's Livelihood cooperation and exchanges continued between enterprises in the east and the west. From the commencement of the Xiluodu Hydropower Station to the end of 2012, CTG On one hand, we contribute to sustainable regional economic growth by developing our had paid various taxes of 1.769 billion Yuan accumulatively for reservoir areas of Xiluodu leading industries; and on the other hand, by providing human resources and intellectual Hydropower Station Project, with taxes paid annually both accounting for more than 60% in support, we help local residents improve their quality of life. the total tax revenues of Yongshan County in Yunnan Province and Leibo County in Sichuan Province. In these data came the highlighted multiplier effect* of hydropower projects in Before carrying out social investment and community development activities, we usually promoting local economic development. make a detailed inspection, in which, by joint consultation with the representatives As a kind of macro-economic effect, the "multiplier effect" refers to the extent of chain effect in the variation of economic aggregate triggered of stakeholders, we dynamically integrate the most urgent local needs with our own * by variable increase or decrease in an economic activity. It is also a kind of control means for macro economy, referring to the disproportionate variation between total economic demand and expenditure triggered by variation of expenditure. development strategy and project layout, launching activities for social contribution taken

root locally. In 2012, by taking advantage of the profuse photo-thermal energy resources Yongshan County in Hetian, Xinjiang Uygur Autonomous Region, we implemented industrial aid to start the in Yunnan Province in the reservoir 20MW Photovoltaic Power Project in Phase I of Pishan County Photovoltaic Power Station, area of Xiluodu and we also provide human resources support for the project, which has a total planned Hydropower Station has made investment of 240 million Yuan. By the end of 2012, the project had completed investment of a dramatic rise, more than 70 million Yuan, with roughly 75% of photovoltaic modules installed. The project leaping from an unknown small will effectively make power available to areas in Pishan County where power is currently riverside county to unavailable. an all-new county well-known for its hydropower, and becoming one of the top 100 counties that have seen fastest promotion of basic economic competitiveness on a county basis. A road-sharing In 2012, Yongshan policy is Unit: 10,000 Yuan County's GDP adopted for the soared to 4.00017 500000 accommodation billion Yuan, an roads of Xiluodu 450000 increase of 16.4% and Xiangjiaba 439000 from 2011. Hydropower 400000 Stations, which has greatly facilitated 350000 GDP increased travel of local 8.6 residents. by times 300000

250000 We found, in developing and constructing Jinsha River hydropower projects, a lack of funds and technology, and the consequent ineffective development and utilization of resources 200000 in the reservoir area of downstream Jinsha River, an area teeming with mineral products, General budget revenue 150000 of local finance increased agricultural products, and work force. Also, we learnt about problems such as industry by 25 times 100000 hollowing and structural resources shortage commonly found among many small and 51100 medium-sized enterprises in Zhejiang Province, the solutions of which must rely on upgrading 50000 35600 1357 industries and optimizing energy structures. In 2011, in collaboration with Zhejiang Provincial 0 Government, we invited small and medium-sized enterprises in Zhejiang Province for 2002 2012 investment and construction in the reservoir area of downstream Jinsha River, and built a complementary strategic cooperation platform for the reservoir area of downstream Jinsha Boosted by the construction of Xiluodu Project, Leibo County of Sichuan Province has seen a rapid River and some small and medium-sized enterprises in Zhejiang Province. In 2012, economic economic development Public Global Public Operation Construction Environment Migration Employees Global Employees Migration Environment Construction Operation 60 Welfare Presence Presence Welfare 61

We pay great attention to giving double love materially and spiritually to the disadvantaged groups, such as the Dedicated to Children's Education and Helping Them Become Talents disabled, leftover children, and the empty nesters. In 2012, Ningxia Yellow River Charity Valley Vocational Education and Training Center for the Disabled, also CTG (Ningxia) Vocational Education and Training Base for the Disabled, a For many years, we have launched the activity of "Dedicated to children's education and project that we funded 11.47 million Yuan, was put into use. There are 12 short-term training classes for the disabled help them become talents", and the " 1 + 1 " voluntary action of helping children's education, all year round, providing over 700 disabled persons with training in 8 professions, including embroidery, computer in which our employees and volunteers make one-to-one pairs with children from poverty- operation, electrician operation, and tailoring. stricken areas; and not only do our employees and volunteers provide these children with learning and living supplies, but also they communicate by letter with the children, giving the children psychological guidance and long-term, continuous love. All the students funded by Support of Culture and Education us have successfully completed the nine-year compulsory education, with over 40 excellent Support for the cultural and educational development is an important project in our strategic public welfare. In our students coming from poor families having entered universities for further education. public welfare practices, we pay enough attention to developing cultural industries, meeting diversified, multi-layered, and various spiritual needs in the society. By providing basic teaching equipment and continuing to improve teaching conditions, we pay close attention to the growth of teenagers, and encourage participation of all employees, to help teenagers develop an positive and optimistic attitude toward life.

We donated 200,000 Yuan to support Beijing Opera Troupe to build a platform for exchanging Beijing Opera art and prospering the quintessence of Chinese culture.

Support traditional culture Our employees We seek to build tourism brand with Three In the Three Gorges investment plan for sending school Gorges characteristics, a brand boasting science and technology publishing jointly supplies and not only grand scenery; but also a Boost launched with China Association for warm care for poor patriotism education base; a base for Serve science and Science and Technology (CAST), we pay students training and popularization of science of tourist technology 4.2 million Yuan for 5 straight years, hydropower; as well as a demonstration funding works publishing of domestic industry base for eco-environment protection. In undertakings scientific and technical researchers working 2012, the Three Gorges Dam Tourist Area on natural science and technical science. handled some 1.8 million tourists.

Disaster Relief and Rescue Actions Three Gorges Exhibition Hall By utilizing the hydro-meteorological monitoring network for Yangtze River Basin and Pinghu Gorges Three Gorges Wharf Culture Center precise water & rainfall information monitoring and analysis technology, we have established a professional contingency mechanism for natural disasters, providing timely information Tanziling View support for emergency rescues and reliefs. After Wenchuan Earthquake occurred in 2008, Point Huanglingmiao Wharf hydrological sites in Chengdu and Mianyang saw their equipment seriously damaged and the communication there got disrupted, resulting in unavailability of information in Xiling Yangtze River Bridge disaster-stricken areas regarding rainfall, water levels, water reservoirs situations, and Three Gorges Dam rivers blocking. In this situation, Three Gorges Water Conditions Automatic Monitoring and Reporting System worked to deliver timely water and rainfall information, which provided Quyuan’s basis of decision-making for earthquake relief work in the earthquake-stricken areas. In Hometown 2012, following a M 5.7 earthquake in Yiliang County, Zhaotong City in Yunnan Province, we donated 10 million Yuan in support of the earthquake relief work there. Layout Map of the Tourist Area of Three Gorges Dam China Three Gorges Corporation China Three Gorges Corporation 62 Social Responsibility Report 2012 Social Responsibility Report 2012 63

Chapter of Global Presence 07 Be a Qualified Global Corporate Citizenship

The successful development, construction and operation of the Three Gorges Project, which has operated safely for nearly a decade, have accumulated for us globally leading experience in the construction and operational management of large-scale hydropower projects. Based on our global vision, we give full play to our integrated advantages in management, technology, capital, brand, and human resources, and share our experience in the construction, operation, and management of hydropower projects, boosting the sustainable development of clean energy business. Public Global Public Operation Construction Environment Migration Employees Global Employees Migration Environment Construction Operation 64 Welfare Presence Presence Welfare 65

The Latest Development of Our "Go Global" Overall Promotion of Localized Operation

Strategy We see foreign employees and residents as our relatives, friends, and partners. In our global operation, we seek to make contribution to the sustainable development of host communities We steadily implement our "go global" strategy, and step-by-step establish the integrated of our projects, by continuing to uphold CTG's idea of long-term cooperation and integration business system of "investment, construction, operation, consultation"; we give full play to into local formed in the construction of Three Gorges Project, and by comprehensively our own competitiveness, influence and driving force to integrate both internal and external strengthening localized management. resources, and carry out responsible international operation. By 2012, our overseas business had reached more than 30 countries and regions from around the world. Satisfaction of Local Needs

We adhere to closely matching our strengths with local social and economic development Consultation Brand Investment planning, and provide continuous and systematic assistance for improvement of local

Responsible for host infrastructure, laying a solid foundation for faster economic and social development. communities and Talents Capital influence of operation International Competitiveness on local communities In Sudan, the second-phase river closure of the Dam Complex of In Kazakhstan, Moinak Hydropower Station Project was completed development Influence Driving force Be a responsible global Upper Atbara Project Lot C1-A was successfully carried out; the and accepted. The project, with a total investment of 360 million of CTG corporate citizenship, concrete placing of generating units of the first power house was U.S. dollars, and two installed 150 MW impulse turbine generating delivering more benefits started; and in addition, management of new campsites for owners units, largest in unit capacity in Asia, is designed to generate in to local communities also saw preliminary effect. The Upper Atbara project, hopefully, excess of 1 billion kWh annually, meeting power demand for will bring to local area irrigation, water supply, and power economic development in southern Kazakhstan. Management Technology generation benefits. Operation Construction

We put corporate credit first, abide by contracts, honor credit, and seek to establish our own brand; we carry out and implement specifications and standards such as the Guide on Social Responsibility for Chinese International Contractors, and faithfully perform contractual liability; and we invest in safety management system with strict quality and progress, in an effort to develop and build high-quality products. Also, some of China's experience in economic development has been introduced overseas by us, making contribution to the development of local economy.

International investment business International contracting business

By acquiring 21.35% shareholding of Energias de The settlement value added up to 8.156 billion Portugal (EDP), CTG has become the largest Yuan, 15% in excess of the annual plan. shareholder of EDP. The newly signed international contracts totaled In Peru, project settlement of Iquitos Water In Guinea, Kaleta Hydropower Project, In the Philippines, Metro Manila Water In July of 2012, the first 2 MW in the Phase I of Solar 9.574 billion Yuan, 47% in excess of the annual Supply and Sewage Project Lot LOTE 1B after completion, will significantly improve Supply Project, in the premise of “zero Energy Project in Greece was put into production and plan. was completed successfully. The project horrible shortage of power supply in safety accident and zero quality accident”, started power generation, with a generating capacity We have, in over 30 countries and regions will improve living and production Guinea and its neighboring countries, was successfully completed and started of 1.364 GWh throughout the year. worldwide, more than 70 investment and environment for local people, and help providing energy security for the water supply 8 month ahead of schedule, Nam Lik 1-2 Hydropower Station in Laos had a contracting projects under construction. protect ecological environment of the head development of mining industry of Guinea. alleviating water shortage for life and generating capacity of 530 GWh throughout the year. of Amazon River. In 2012, access roads became fully production of nearly 15 million residents in Nam Ngiep 2 Hydropower Station in Laos was available, with the main camp and side Manila. This project is a key livelihood successfully dammed. camp both completed and put into use. project of Philippine government, also an Three Gorges First Wind Farm Pakistan Project important achievement of economic and started construction in Pakistan. trade cooperation between china and the Philippines.

Progress in Major International Business in 2012 Public Global Public Operation Construction Environment Migration Employees Global Employees Migration Environment Construction Operation 66 Welfare Presence Presence Welfare 67

Respect for Local Cultures and Traditions Promote direct employment: We strictly comply with host countries' labor laws and regulations, and fully take advantage of local employees' familiarity with local economy, In operating and managing overseas business, we fully respect local traditions, cultures society and cultural traditions, carrying out localized operation. and customs; strengthen mutual communication and exchange; and treat each other with Foster ability in sustainable employment: By regularly carrying out skills and sincerity to live in harmony, in pursuit of recognition in emotion and value. management training, we aim to fully enhance employees' comprehensive quality and skill levels; increase overseas employees' ability in sustainable employment; and expand platforms for their career development. For local employees For local residents Promote indirect employment: Our major overseas investment and contracting projects We give full respect for our employees, regardless We show respect for the customs, traditions, can promote local economic strengths, by stimulating the development of other of their races, skin colors, and religious and religion beliefs, and taboos in life and languages of cultural backgrounds. Based on employees’ the local residents, avoiding violation of local industries in host communities of our operation; by creating jobs for local residents; and different religion beliefs, we make reasonable customs and taboos. We are also actively involved timetables and reasonable work arrangements, in local life, positively participating in protection of by increasing local taxes. trying to avoid coincidence of work or meetings religion beliefs and cultures of the local residents. with their religious festivals. In addition, we respect and accommodate dietary habits of local employees, cooking work meals in favor of their dietary habits.

Full respect for cultures and traditions of employees and community residents

In Guinea, most local residents are Islam believers, who never fail to attend the 5 prayers in schedule time. While ensuring project quality and progress in constructing Kaleta Hydropower Project, we also built a mosque near the project site for local employees and nearby villagers, to ensure Muslim employees' time for daily prayers. In Ecuador, near the project camp of TP Hydropower Station, we built a church, one for 60 employees' religious activities at the same time. After completion of hydropower station, we handed the church over to local community, as a permanent public venue for religious activities. In Pakistan, in view of the fact that during the holy month of Ramadan, local employees cannot eat or drink in the daytime, we adjusted timetable for local employees, making Employing a large their work pause or arranging only a small amount of work for them during this period. number of local residents Also, we communicate the requirements of Ramadan to each Chinese employee, demanding that they never eat or drink before local employees. Coordinated Development with Local Support of Local Employment Communities and Environment We implement a policy of employee localization, where we give full respect for overseas Employees of CTG who work overseas have shown their friendliness to local residents and employees' basic rights and interests, and enhance their personal value; we work to promote ecological environment, and they, with their wisdom and sweat, have made contribution regional economic development, and we have built, with local governments and residents, to the economic prosperity and industrial development. It is our commitment that we will harmonious and friendly cooperative relationships based on equality and mutual benefit. not only be a responsible Chinese corporate citizen, but we also seek to make greater contribution to protection of ecological environment and sustainable development around the world. Public Global Public Operation Construction Environment Migration Employees Global Employees Migration Environment Construction Operation 68 Welfare Presence Presence Welfare 69

Participation in Co-building Communities

We adhere to cooperation and a win-win situation, and actively organize and participate in public welfare activities in host communities of our projects; and by relieving disaster, helping and supporting the poor, and providing emergency rescue, we are there with local residents at critical moments, trying our best to return to local communities.

Charitable donation Emergency Response

Near Nam Lik 1-2 Hydropower Station in Laos, we When a blizzard hit host communities of Draa Diss funded Laos Pak Ngua School, and provide Dam and Mahouane Dam in Algeria, we actively graduates with employment opportunities, helping participated in disaster relief by mobilizing loaders long-term development of Laos' education. and bulldozers to clear snow on municipal roads, TP Hydropower Station in Ecuador donated provincial roads and part of national roads, money and goods worth 26,308.4 U.S. dollars for making roads quickly passable again. Dam of Murum local environmental protection agencies and In response to a severe fire in the location of Hydropower Station schools. Iquitos Water Supply and Sewage Project in Peru, under construction Kaleta Project Department in Guinea built a we immediately organized heavy vehicles, such drinking water tank and a football field near the as water vehicles and excavators, as well as project site for local employees and surrounding workers to support combating the fire. villagers. When Canar Flood Control Project in Ecuador was under construction, it was rainy season there, Our Social Responsibility Going Wherever Our Project is Located and the rainwater swelled Badu River, a tributary of Canar River, causing gaps in some of river levees. The spilled river water posed a huge Sarawak State in Malaysia enjoys beautiful nature, pristine customs, and friendly residents. threat to safety of local residents, and may result in extensive reduction of crop production. In Murum Hydropower Station is located in the region. Since we contracted to build Murum response to this dangerous situation, we immediately organized technicians to analyze the Project in 2008, we have always adhered to our philosophy in developing hydropower situation and made countermeasures. After 12 days of continuous efforts, the gaps were of "Build up a power project, to promote economic development, improve local eco- successfully blocked and the peril was eliminated environment and benefit reservoir migrants", and while advancing project construction, we eventually. also help promote the economic and social development in Sarawak State, benefiting the local people.

Green and Environmentally-friendly Operation During the construction, we always put quality, brand, and credit first. In the procurement bidding of turbine generating units, we select manufacturers with highest Honoring quality, good brands and reputation as bidding winners; in order to ensure weld quality We truly cherish every inch of land, every drop of water, and every plant in host communities agreements of branch pipes of steel penstocks, we expand digging of adits; in the face of instability with integrity in the construction of powerhouse back slope, we promptly optimized designing scheme of our projects. We make great efforts to achieve coordination and a win-win situation and enabled support construction. And it is our practices of honoring agreements with between development and utilization of resources and ecological and environmental integrity like these that wins the trust and support of owners. protection, and aim to build ecological environmentally-friendly for local residents, by Co-building In the construction of Murum Project, we made successive donations to local mass strengthening environmental management of construction projects; by developing and local organizations, schools and individuals, including Sarawak cripple school, elementary applying new energy-saving and environmentally-friendly technologies and processes to communities schools near construction sites, which was highly praised by local communities. reduce consumption of energy and resources in construction projects; and by reinforcing soil Murum Hydropower Project, being a diversion-type hydropower station, after water and water conservation and biodiversity conservation. impounding, will cause a riverway of longer than 10 km between downstream of the Environment dam to power station to dry. To deal with this problem, we arranged eco-flow opening Advanced and feasible power-saving, water-saving and measures to save raw materials protection gates along the dam, to ensure flow of a certain degree in the downstream riverway, and meanwhile, we arranged ecological small power stations by taking advantage of the were adopted in the design of Three Gorges First Wind Farm Pakistan Project, making good eco-flow opening gates, providing local residents with green power. use of energy and resource. The project, which after completion, will directly supply power for local power grid in Karachi, Pakistan, can alleviate tight power supply there, and can also We gave preference to local employees and natives in our recruitment, and actively Localized carried out training on skills and safety; considering the fact that Sarawak is where a improve supply structures of the local power grid, saving coal and oil resources for coal- variety of religious cultures converge, with some local employees believing in operation Catholicism, and some believing Islam, we respect their different religion beliefs, and fired power generation; playing a positive role in promoting regional economic and social funded building of a Christian church, a mosque, and a Muslim Restaurant. sustainable development; and delivering prominent social and environmental benefits. Public Global Public Operation Construction Environment Migration Employees Global Employees Migration Environment Construction Operation 70 Welfare Presence Presence Welfare 71

Promotion of the Sustainable Development of Global Extensive Exchange and Discussion for Cooperation with Well-known Hydropower Industry Overseas Academic Institutions In our exchange and cooperation with the United Nations Educational, Scientific and Cultural Organization (UNESCO), We carry out wide-ranging cooperation and exchange with international organizations, international academies, Durham University, and Taiwan Sinotech Foundation for Research and Development of Engineering Sciences and and scientific research institutions in building a platform to share experience and achievements to popularize Technologies. We have organized 22 students from University of Hong Kong for internship in construction sites of the philosophy, experience and standards of CTG, boosting the sustainable and healthy development of global Three Gorges, Xiluodu and Xiangjiaba projects; and we organized Taiwan Sinotech Engineering Consultants, LTD. hydropower industry. for a visit to CTG’s projects on Jinsha River, demonstrating achievements we have made in hydropower technology In 2012, CTG proposed the setting-up of Technical Committee on Integrated Operation of Hydropower Stations and and management. Reservoirs under International Commission on Large Dams (ICOLD), which brings together global expertise and In addition, based on the memorandum signed with Business School of Durham University in 2010, we discussed resources to carry out exchanges and research, works as an important platform to share management experience future cooperation such as staff training; and we also strengthened our liaison with UNESCO, by discussing the in cascade dispatch among counties from around the world, and to promote mutual improvement of international possibility of encapsulating Three Gorges Project as a case in 2014 World Water Development Report. hydropower technology, promoting expertise development in relevant international industries.

Organization Name Position

Technical Committee on Integrated Operation of Hydropower Stations and Reservoirs, International Chairman Unit Commission on Large Dams (ICOLD)

International Hydropower Association (IHA) Director Unit

Association of the Electricity Supply Industry of East Asia Member Unit and Western Pacific (AESIEAP)

China Association of Work Safety (CAWS) Vice-chairman

In November 2012, Technical Committee on Integrated In December 2012, CTG co-sponsored with The Nature Chinese Society of Hydroelectric Engineering (CSHE) Vice President Operation of Hydropower Stations and Reservoirs held Conservancy (TNC) an exchange lecture with the theme of in Beijing "International Seminar on the Development and "Ecological flow, hydropower development and environmental Chinese Hydraulic Engineering Society (CHES) Vice President Management of Cascade Hydropower in Changing Climate". protection".

China Energy Research Society (CERS) Vice President By actively participating in the revision and discussion for the application for China's hydropower projects of the Chinese edition of Hydropower Sustainability Assessment Protocol, an industry guidance document of the Chinese National Committee on Large Dams (ChinCOLD) Vice President International Hydropower Association (IHA), CTG works closely with IHA in promoting the sustainable development of Major International Organizations CTG Involved China's hydropower industry.

March April June September October December 2012 2012 2012 2012 2012 2012

Participated in the first International Participated in the third International Participated in St. Petersburg Participated in the fourth Vietnam Participated in the 19th Conference of Participated in China-Russia Economic Forum for Clean Energy (IFCE), Infrastructure Investment and International Economic Forum (SPIEF) Electricity Conference, demonstrating Electricity Power Supply Industry Forum, discussing issues such as sharing the latest cutting-edge Construction Forum (IIICF). 2012, sharing our achievements and achievements of China Three Gorges (CEPSI) of the Association of the cooperation in electric power, energy technology and achievements in clean experience in the construction and Corporation and discussing Electricity Supply Industry of East Asia efficiency, and energy conservation, as energy and energy conservation and operation of Three Gorges Project, development and cooperation of and Western Pacific (AESIEAP), well as infrastructure and investment. emission reduction. development of international business, Vietnams’ energy. exchanging current development and assumption of social responsibility. situation and challenges of clean hydropower, and discussing together future prospects of clean hydropower.

Major International Events in 2012 72 73

Key Performance Table of 2012 Prospects of 2013

Economic Performance 2012 2011 2010 Development Direction Development Plan of 2013

Generating Capacity (100 million kWh) 1199 973 1024 We will make great efforts to control flood, by optimizing dispatch to improve accuracy and precision in hydro-meteorological forecasting; and by promptly adjusting the capacity of 3749 3131 2862 Total Assets (100 million Yuan) generating units Operating Revenue (100 million Yuan) 369 313 297 Exert comprehensive benefits Unified dispatch will be conducted in dry season, and emergency dispatch carried out when of Three Gorges Complex appropriate, in an effort to improve tight water supply for life, production, and ecology in the Total Profit (100 million Yuan) 193 158 143 middle and lower Yangtze River Play its role in combating draught Asset-liability Ratio (%) 40 32 28 We will improve the navigation conditions of Yangtze River Basin; and save water to increase generating capacity, optimizing power resource configurations Social Performance We will improve quality safety standard system, and seek to transfer from later treatment to Charitable Donations (10,000 Yuan) 7441 5251 9486 earlier prevention and control We will work hard to establish construction standards for hydropower projects with Three Taxes Paid (100 million Yuan) 102 83 92 Great efforts will be made to build excellent projects. Gorges characteristics We will actively participate in industry activities and standard-setting; promote progress in the Environmental Performance industry; and strengthen communication and cooperation industry chain, achieving mutual benefit a win-win situation Reduced carbon emissions (10,000 tons) 8726 8040 8730 Increase utilization ratio of water resources 3832 3320 3500 Saved standard coal (10,000 tons) Preserve natural ecological Strengthen biodiversity conservation balance Input in environmental protection (100 million Yuan) 0.6 3 4 Further promote energy conservation and emission reduction Actively respond to climate change Employees' Performance Coordinate with the government to complete relocation & resettlement of migrants for Xiluodu Hydropower Project Total number of employees (people) 15634 13793 12398 Promote sustainable development for migrants Make every effort to solve problems regarding relocation & resettlement of migrants, by Proportion of females in positions of management (%) 11 12 1.2 combining with construction of new socialist countryside and towns Pay attention to the sustainable development of migrants Proportion of national minority employees (%) 4 4 3.6 Give full play to the role of Workers' Congress and strengthen democratic management and Employees' rate of participation in social insurance (%) 100 100 100 democratic supervision Training expenses (10,000 Yuan) 4000 643 661 Build a harmonious labor Accelerate the building of four bases in Yichang, Chengdu, Kunming and Beijing relation Further improve medical security system, and make medical care more affordable to our Labor Union membership rate (%) 100 97 93 employees Labor contract signing rate (%) 100 100 100 Accelerate establishing a reasonable income growth mechanism

Annually average paid holidays (days) 8.6 8.6 3.4 Continue to promote targeted poverty alleviation and partner assistance, helping improve people's livelihood Occupational disease rate (%) 0 0 0 Dedicate ourselves to Continue to support culture and education, and pay continuous attention to development of repaying the society teenagers Safety Performance Give full play to our own advantages and play an active role in disaster relief and rescue actions Major personal casualties (case) 0 0 0 Strengthen international exchange, build brands of Three Gorges Project and CTG, and General equipment accidents (case) 0 0 0 introduce Three Gorges standard to the world Be a qualified global Actively participate in public welfare activities in overseas markets, such as community corporate citizenship co-building and charitable donations, doing what we should as a global corporate citizenship Strengthen risk management of overseas projects, and effectively protect against political, economic, social, legal, and physical security risks 74 75

Index of Report Indicators

Report Directory GRI Benchmarking CASS-CSR Benchmarking Report Directory GRI Benchmarking CASS-CSR Benchmarking

Front Cover Promotion of Sustainable Development for 4.11/ EC7/EC8 S1.8/S4.2/S4.8 Migrants/Supporting Migrants and Helping About This Report 3.1/3.3/3.4/3.7/3.8/3.9/3.11 P1.1/P1.2/P1.3/P1.4/P1.5/P1.6/P1.7/P1.8/A4 Them Build Self-reliance and Adress 1.1/1.2/EC1 P2.1/P2.2 Self-improvement About CTG Chapter of Employees About CTG/A Brief Introduction to CTG 2.1/2.2/2.5/2.6/2.7/2.8/2.9/EC1 P4.1/P4.2/P4.3/P4.4/P5.2/M1.2/M1.3/M1.4/ M2.1/M2.2/M2.4/M2.5 Establishment of a Harmonious Labor 4.11/LA1/LA2/LA3/LA4/LA5/LA8/LA9/ S2.1/S2.2/S2.3/S2.4/S2.5/S2.7 /S2.8/S2.10/S2.11/ About CTG/Social Responsibility 4.13 G2.1/G2.2/P3.1/G1.2/G2.3/G5.1/G5.2/G5.3/G5.4 Relation/Work with Dignity LA10/LA13/LA14/EC1/EC3/EC7 S2.12/S2.13/S2.14/S2.21/S2.22/ S2.23/S2.24/S2.25 Management Establishment of a Harmonious Labor LA11/ LA12 S2.8 /S2.21/S2.22/ S2.23 Relation/Realization of life Value Chapter of Operation Establishment of a Harmonious Labor LA8/LA11 S2.8/ S2.26 Relation/Working Together to Create a Bringing into Play the Project’s EN1 S4.1 Happy CTG Comprehensive Benefits/Flood Prevention Establishment of a Harmonious Labor LA3 S1.8/S2.9 Bringing into Play the Project’s EC2 Relation/Respect for Migrant and Skilled Comprehensive Benefits/Drought Relief Labors Bringing into Play the Project’s EC1 Comprehensive Benefits/Navigation Condition Improvement Chapter of Public Welfare Bringing into Play the Project’s EC1 ELE2.11 EC1/EC8/EC9 S1.8/S4.1/ S4.2/S4.7 Comprehensive Benefits/Clean Electricity Dedication to Repaying the Society/Helping Supply Improve People's Livelihood Dedication to Repaying the Society/Support EC8/EC9 S4.1/S4.2/ S4.10/S4.8 Chapter of Construction of Culture and Education Dedication to Repaying the Society/Disaster S06 S4.1 EC4 /SO10/PR1 M1.4/M2.1/M2.5/S4.1 E1.7/E1.8/E1.10 Dedication to Quality Projects/First-rate Relief and Rescue Actions Engineering Design 4.11/ PR3/LA7 M1.4/M3.10/S3.1/S3.2/S3.3/S3.4/S3.5/S3.6/ Dedication to Quality Projects/Refined Chapter of Global Presence Project Construction ELS3.9/ELS3.10/S3.12 4.11/HR5/ EC6 G3.3/M3.1/M3.2/M3.3/M3.4/M3.5/M3.6/S4.5/E1.5 Dedication to Quality Projects/Accountability Be a Qualified Global Corporate EC1 in Purchasing on an Overall Scale Citizenship/The Latest Development of Our "Go Global" Chapter of Environment Strategy SO1/ HR3/ HR5 S4.1/ S1.8/S4.3 Maintaining the Ecological Balance of EN4/EN14/EN26/EN30/EN11/EN12/EN13/ E1.3/E1.4/ E1.9/E1.10/E1.11 Be a Qualified Global Corporate Nature/Conservation of Biological Diversity EN6/EN12/EN15 Citizenship/Overall Promotion of Localized Maintaining the Ecological Balance of EN2/EN5/EN8/EN10/EN25 E2.1/E2.2/E2.3/E2.4/E2.5/E2.12/E3.7/E3.8 Operation SO9/ EN7 S4.2/S4.7/S4.12/ E1.8/E2.1/ELE2.11 Nature/Sustainable Utilization of Water Be a Qualified Global Corporate Resources Citizenship/Coordinated Development with Maintaining the Ecological Balance of EN5/EN7/EN16/EN17/EN18/EN19/EN20/ E2.5/E2.6/ E3.9/E3.10/E3.11 Local Communities and Environment 4.12/4.13 G5.5/G6.3 Nature/Promotion of Energy Conservation EN22/ EN26/EN29 Be a Qualified Global Corporate and Emission Reduction Citizenship/Promotion of the Sustainable Maintaining the Ecological Balance of EC2/EN6/EN18/EN19/EN20 ELE2.7/ELE2.10/ELE2.11/ELE3.5/E3.13 Development of Global Nature/Response to Climate Change Hydropower Industry

Chapter of Migration Key Performance Table of 2012 EC1/EN20/EN30/LA1/LA2/LA4/LA7/LA13 P5.1/P5.2/M1.2/M1.3/M1.4/S1.6/s4.9/S4.11

Promotion of Sustainable Development for EC4/ EC8/ EC9 S1.5/S4.1 Prospects of 2013 EN14 G1.3/A1 Migrants/Coordination with the Government 3.12 A3 and Doing Well in the Resettlement Work Index of Report Indicators EC8/ EC9 S4.1/S4.2/S4.7 Promotion of Sustainable Development for The 3rd-party Review 3.13 A2 Migrants/Putting Migrants in Heart and Launching Community Assistance Readers' Feedback 3.4 A4 76 77

The 3rd-party Review

At present, while enjoying the fruits of economic growth globally, more attention is paid by the whole society to the Since its first social responsibility report released in 2010, CTG has seen new breakthroughs in its new reports each international topic of climate change and energy supply. In this situation, enterprises face such a challenge that how year. Major innovations and improvements are made to this year's report, which demonstrates CTG's profound they can unswervingly fulfilling their social responsibilities, and provide the changing world with green power in an understanding and relentless pursuit for its own industry positioning and the social responsibility it takes up; and environmentally friendly way, in order to achieve green development. As an enterprise committed to becoming a which also gives a vivid description of CTG's pursuit of optimized comprehensive value of economic development, world-class clean energy group, CTG with its own actions, has vividly interpreted the important issue of development environmental friendliness, and social harmony, embodying apparent industry characteristics and the corporation's coordination between enterprise and the ecological environment, one with world attention. grasp and understanding of the latest trend regarding social responsibility. Since 2009, CTG has made a solid stride in its social responsibility, committed to promoting corporate social responsibility using globally accepted standards: we have published social responsibility reports for three straight With promotion of social responsibility management as context, CTG gives full respect for and responds actively to years, enabling more systematic and regular disclosures of social responsibility information; we have set up a the stakeholders' expectations and demands, and integrates the philosophy of social responsibility into decision- leading group for social responsibility work, clearly defining scope of official duty regarding social responsibility of making and construction & operation, seeking sustainable social development through its own philosophy of each corporate department, improving relevant rules and regulations regarding social responsibility, and improving accountability assumption and practices. More attractively, clean energy, as the key product of CTG, is in itself an social responsibility management system; we integrate the philosophy of social responsibility and requirements of important support in achieving sustainable development for human beings. sustainable development into our corporate strategy and daily operation, exploring an approach to practicing social responsibility with CTG characteristics. Substantive issues are more prominent. Compared with the reports released in last and previous years, several major This series of strategic moves have laid an effective system foundation for the social responsibility work of CTG. innovations are made to the framework of the 2012 Social Responsibility Report of China Three Gorges Corporation, Viewing from the past achievements, whether in the design and construction of projects, or in exploring exerting the whose main body is divided into seven sections, including Operation; Construction; Environment; Migration; comprehensive benefits of Three Gorges Complex, CTG always bears in mind its commitment to nature, and work Employees; Public welfare; and Global presence. With these new changes, the report becomes more readable, with while taking into consideration such issues as biodiversity conservation; sustainable utilization of water resources; its core topics becoming more substantial and sense of wholeness obviously enhanced. promote energy conservation and emission reduction; and response to climate change, integrating the philosophy and pursuit of providing the society with responsible clean energy into every link in our strategic decision-making The report, featuring clear logic, more human-oriented words & expressions, and little use of traditional report cliche, as well as in the operation and management. As demonstrated in the report, CTG does pretty well in the key seven is friendlier to the readers. Also, this year's report seeks to present its content in a more simple, beautiful, and human- responsibility areas, consisting of Operation; Construction; Environment; Migration; Employees; Public welfare; and oriented manner, by increasing intuitive description approaches such as logic diagrams and tables; and by enhancing Global presence, creating remarkable economic, social and environmental value. delicacy of layout design, reflecting CTG's characteristics in accountability assumption, and fully promoting the It is true that sustainable development is also a process that involves constant recognition of problems, and readability of the report. continuous improvements. No different from many other companies, CTG has also, in the course of development, encountered a number of challenges and problems, such as safety production of contractors. We can see that, this More internationalized. The content of the report fully benchmarks and applies IHA Hydropower Sustainability report objectively discloses some of the enterprise's negative information in the reporting period and measures for Guidelines and ISO 26000 Guidance on Social Responsibility, uses professional descriptions in these standards, and later improvements, which shows that CTG has the courage to face up to problems encountered in its development; covers content paid attention to in the standards. CTG also provides an English edition of the report, which helps its finds out their roots from within the corporation; and makes corrections from management system, hoping for international distribution. supervision and improvements from stakeholders. And this is exactly what we want to see, a positive action taken by a responsible enterprise. In summary, this is a report of high quality. And it is our hope that CTG, in the future, will further improve the

Responsibility is the cornerstone of enterprise development, rather than an accessory as the icing on the cake, construction of social responsibility management system, and continue to promote its social responsibility and only when responsibility is integrated into every step in development of enterprise, can an enterprise really management, working as a model in the road of sustainable development for world's hydropower enterprises. achieve sustainable and healthy development. It is our sincere hope that CTG constantly will adhere to sustainable development as the core; implement central enterprises strategy for harmonious development; actively explore distinctive social responsibility management mode and experience; and make efforts to create comprehensive economic, social and environmental value, making greater contribution to sustainable economic and social development. Mr. Cheng Duosheng

Mr. Peng Huagang Executive Director of Global Compact Network China

Director of the Research Bureau of the State-owned Assets Supervision and Administration Commission (SASAC) of the State Council Readers' Feedback

Dear Readers,

Thank you very much for reading China Three Gorges Corporation Social Responsibility Report 2012. We greatly value and hope to hear your feedback on the social responsibility work and Social Responsibility Report of China Three Gorges Corporation. Your opinions and suggestions are an important basis for our continuous promotion of management and practice of corporate social responsibility. You can fill out the form below and return feedback to us by letter, email, or fax. We greatly welcome and appreciate your valuable suggestions. Writing Group of the Social Responsibility Report of China Three Gorges Corporation June, 2013

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