Protection with Serving with Connectivity of Dedicated Heart Sincere Heart Hearts WHOLE HEARTEDNESS Addressing Inadequacies for a Better INITIATIVE Life and Guiding the Emerging Industries CORPORA TE SOCIAL RESPONSIBILITY REPOR T 2018 S TA TE DEVEL OPMENT & INVES Add: International Investment Plaza, 6-6 Fuchengmen North Street, Xicheng District, Beijing, China Postcode: 100034 Tel: +86-10-6657 9001 CORPORATE SOCIAL TMENT CORP Fax: +86-10-6657 9002 RESPONSIBILITY REPORT Website: www.sdic.com.cn Environmental considerations for report publication .,L TD Paper: print on environmentally-friendly paper . Ink: Use environmentally-friendly to reduce air pollution Designed by: Report Introduction Starting from Heart 12 Serving Major National Strategies 14 Contents This report is the eleventh corporate social Supply-side Structural Reform 18 responsibility report released by State Pilot Reform of State-owned Capital 20 Development & Investment Corp., Ltd. Investment Company (hereinafter also referred to as SDIC, the Heart Story: Happy Life for Senior People with Company, the Group or We), systematically Cognitive Disorder in Dawan District Message from the Chairman 02 disclosing responsibility performance of --SDIC Health Jiaqi Senior Apartment 22 SDIC in the aspects of economy, society, and Create Values & Invest in Future environment, and so on. The report covers the period from January 1,2018 to December Operation with Ingenious Heart 26 SDIC Has Successfully 04 31, 2018. Some events took place beyond the Technological Innovation 28 Achieved Transformation above scope. Preventing Financial Risks 34 and Development! Add: International Investment Plaza, 6-6 Fuchengmen North Street, Xicheng District, Beijing, China Postcode: 100034 Strategic Cooperation 36 Tel: +86-10-6657 9001 Fax: +86-10-6657 9002 Reference Standards Website: www.sdic.com.cn Law-abiding Operation 38 UN Sustainable Development Goals (SDGs) Work Safety 40 “ISO 26000 –Guidance on Social Responsibility” 2018 2017 Heart Story: Ingenuity to be the Leader in of the International Organization for Automotive Fuel Systems Standardization (ISO) --Yapp's R&D Center 42 “G4 Sustainability Reporting Guidelines” of the Global Reporting Initiative (GRI) “Guiding Opinions on Better Fulfilling Social Protection with Dedicated Heart 46 Responsibilities of State-Owned Enterprises The Clean Energy Integrating Wind, (SOEs)” of the State-Owned Assets Supervision Solar and Hydropowers 48 and Administration Commission (SASAC) of the Biomass Energy 51 State Council Energy Saving, Emission Reduction and “Chinese CSR Preparation Guide (CASS-CSR Carbon Reduction 52 2016 2015 2014 4.0): General Framework” of the Chinese Protecting the Ecological Environment 55 Social Responsibility Academy of Social Sciences Heart Story: The Scientific and Technological Management 88 Strength in Erhai Lake Data Sources -- the Erhai Lake Sewage Treatment Project 56 Responsibility Model Responsibility Communication The data in this report comes from the official Observe SDIC from the Press documents and statistical reports of SDIC. As for the financial data, all currency amounts are Serving with Sincere Heart 60 in RMB unless otherwise stated. Employee Care 62 Targeted Poverty Alleviation 66 About Us 94 Further Reading Community Care 70 Corporate Overview Youth Volunteering Action 72 Corporate Culture & Core Values You can learn more information relating to 2013 2012 2011 Corporate Strategies corporate social responsibility of SDIC or Heart Story: "Good Days Are from Endeavors" Corporate Governance download the e-version of this report in the -- Practice and Exploration of Li Ruiqi, following ways. a Poverty Alleviation Cadre 74 Official Website: www.sdic.com.cn Connectivity of Hearts 78 Prospects 98 New Achievements in "Belt & Road Initiative" 80 OMO3 Sugar Factory Makes the "Sweet" Dream of the Ethiopian People Come True 83 Appendix 100 Join Hands with Polish APPOL to Produce Financial Statements Healthy Juice 85 Key Performance Indicators 2018 Corporate Social Heart Story:We Grow Together with Uganda Third Party Evaluation Responsibility Report of SDIC --How COMPLANT Fulfills Its Responsibility Overseas 86 Guide Index Starting from Operation with Protection with Serving with Connectivity of Heart Ingenious Heart Dedicated Heart Sincere Heart Hearts SDIC Corporate Social Responsibility Report 2018 Message from the Chairman We insist on making strategy in advance and continuously improving the quality The year 2019 marks the 70th of development. We focus on the four strategic business units, promote business anniversary of the founding of structure optimization to ensure the preservation and appreciation of state-owned New China. It is a crucial year assets. The basic industry has been further consolidated. The forward-looking strategic for achieving a moderately Bearing the brunt is the most fundamental social responsibility of industry has achieved breakthrough development. The financial service and other prosperous society in an all-round central SOEs. services has developed steadily. Its international business has achieved new progress. way. We will accelerate the pace In 2018, SDIC Gaoxin made an offer to acquire CHSR, and YAPP Automotive Parts was of building a world-class capital Over the past year, we have been guided by Xi Jinping's successfully listed. SDIC Health's Beijing and Guangzhou senior people care projects investment company with global Thought of Socialism with Chinese Characteristics for a New were put into operation. Shanghai and Guiyang senior people care projects won the competitiveness, celebrate the Era and courageously committed to promoting high-quality bid. Its senior people health industry took a solid step. SDIC Testing & Certification 70th anniversary of the founding development. The company achieved a profit of 19.3 billion Co.,Ltd. was established and actively participated in the reform of the inspection and of the People's Republic of China RMB yuan and a total asset of 582.3 billion RMB yuan, making testing industry to serve the country's high-quality development goals. with outstanding achievements a new high. It has been awarded the A-rating in the annual and make new and greater performance assessment conducted by the State-owned We practice green and low-carbon development to make our own effort in building contributions to the goal set for Assets Supervision and Administration Commission of the ecological civilization. SDIC continues to increase investment in clean energy such the 100th anniversary for the State Council(SASAC) for 14 consecutive years and has been as hydropower, wind power and photovoltaics etc., and accelerate the construction founding of the CPC and PRC. awarded Excellently Performing Enterprise for four consecutive of a world-class complementary clean energy demonstration base in the Yalong terms. Over the past year, we have insisted on the philosophy River Basin combining wind power, hydropower and photovoltaics. We promotes the of addressing inadequacies for a better life and guiding the development and utilization of biomass energy by reorganizing Jilin Alcohol Group emerging industries, changing the way and adjusting the and thus making SDIC Biotech the largest supplier of fuel ethanol in China. SDIC has structure, and successfully realizing the transformation of old increased investment in environmental protection, acquired China Water Environment and new driving force. As of the end of 2018, the proportion Group and established a SDIC environmental protection platform. We proactively of forward-looking strategic industry and financial service & implement ecological restoration and protect biodiversity. SDIC develops circular other services has amounted to over 50%, and the company economy such as seawater desalination and urban minerals to save energy and has successfully achieved transformation and development. reduce carbon emissions. We adhere to the reform and development direction of state- We have solidly promoted targeted poverty alleviation for the goal of a well-off The year of 2018 witnesses a year of implementation owned capital investment companies and enhance our ability society in an all-round way. We implement poverty alleviation efforts by promoting of the spirit of the 19th CPC Party Congress and China’s to serve China’s national strategy. We continuously improve the labor export from poverty-stricken areas, skills training, poverty alleviation through 40th anniversary of reform and opening up. Since establishment of a corporative, professional, and differentiated consumption, and “insurance + futures” to help the poor. In 2018, SDIC earmarked the establishment, under the strong leadership of management system, and promote the pilot reform of state- 62.38 million RMB yuan in poverty alleviation, among which 36.087 million RMB yuan the CPC Central Committee and the State Council, owned capital investment companies in depth and width. The was targeted assistance fund, an increase of 36% year-on-year, helping 20,202 SDIC has been determined to reform and innovate pilot reforms have been highly recognized by the Central Deep registered poor households. The Industrial Development Fund in Poverty-stricken to take responsibility and to continuously improve Reform Office and the State Council Reform Supervision Team. Areas and the Central SOEs Industrial Investment Funds in Poverty-stricken Areas its strategic capabilities in serving the country. SDIC always serves the national strategies such as targeted co-established and managed