2018 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 環境、社會及管治報告 ESG Report Contents About This Report ...................................................................... 2 ESG Management System ................................................................ 3 ESG Concept and Goals ................................................................ 3 ESG Management Structure ............................................................. 3 Stakeholder Engagement ............................................................... 3 Green Operation........................................................................ 6 Compliance in Operation ................................................................ 6 Reduction in Emissions ................................................................. 7 Energy Efficiency Improvement ........................................................... 8 Clean Production ..................................................................... 11 Key Performances..................................................................... 12 Health and Safety Protection .............................................................. 13 Production Safety Management........................................................... 13 Occupational Health Protection ........................................................... 18 Protection of Employees’ Rights and Interests.................................................. 19 Employment and Rights and Interests of Employees............................................ 19 Trainings and Development .............................................................. 20 Employee Care ....................................................................... 23 Operation Responsibility Management........................................................ 25 Product Responsibility.................................................................. 25 Supply Chain Management .............................................................. 29 Anti-corruption ....................................................................... 29 Community Investment ................................................................. 30 Appendix: ESG Reporting Guide ............................................................ 31 DALIAN PORT (PDA) COMPANY LIMITED I 2018 ESG Report 1 ESG Report About This Report Dalian Port (PDA) Company Limited (“Dalian Port” or “the Company”) was successfully listed on the main board of the Stock Exchange of Hong Kong in 2006 and on the Shanghai Stock Exchange in December 2010 respectively, becoming the first port company listed in the stock exchanges of both Hong Kong and Shanghai. Dalian Port always takes “prospering the city through the port development, and serving the nation with industrial development” as its mission. Today, Dalian Port is vigorously marching on diversified paths toward a vision of “building a multi-functional, all-round and modernised international port by 2020 and also a happy, innovative, ecological, highly- efficient and smart enterprise”. Pursuant to the Environmental, Social and Governance (ESG) Reporting Guide (the “ESG Reporting Guide”) set out in Appendix 27 to the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited, Dalian Port released Dalian Port (PDA) Company Limited Environmental, Social and Governance Report 2018 (“the Report”). Dalian Port aims to disclose to stakeholders in the Report our achievements in terms of environmental, social and governance practices in 2018. It is advised to read the content pertaining to governance together with the Corporate Governance Report in the annual report. The Report covers ESG-related information on domestic operating activities of Dalian Port and its main subsidiaries unless otherwise stated, and the reporting period is identical to that of the Company’s annual report. 2 DALIAN PORT (PDA) COMPANY LIMITED I 2018 ESG Report ESG Report ESG Management System ESG Concept and Goals In adherence to the ESG concept of “green and sustainable development”, Dalian Port proactively takes social responsibilities for environment, employees and customers while making profits, constantly operates in an honest, value- producing, safe and environment-friendly fashion, and upholds the corporate culture featuring virtue, honesty and self- improvement. The Company also strives to be resource-saving and environmentally-friendly, gives top priority to people, increases value for customers, reaches out to each stakeholder to understand their concerns, and to achieve mutual development of the Company, the society and the environment. ESG Management Structure In order to press forward ESG-related work, Dalian Port further improves the ESG management structure. With the functions and responsibilities clarified, ESG management is promoted on a compliant basis. The Board of Directors leads the Company’s overall ESG work, maps working plan for every functional department and supervises the implementation. Subsidiaries are committed to implementing each assignment in the plan. In 2018, the ESG management concept was deeply rooted in everyone’s mind and the ESG management was effectively enforced. Stakeholder Engagement The Company is grateful for the support and help from stakeholders from all walks of life. With a deep understanding about the significance of stakeholders’ expectations on the corporate development, the Company always attaches great importance to their expectations and demands on our ESG performance. In order to effectively identify major stakeholders’ key concerns, the Company has established diversified and targeted communication channels to maintain long-term and effective communication with stakeholders. DALIAN PORT (PDA) COMPANY LIMITED I 2018 ESG Report 3 ESG Report Through the identification and communication mechanism, major stakeholders identified include government and regulators, shareholders and investors, employees, customers, suppliers, media and community, whose top concerns covering compliance in operation, use of resources, emissions, caring for employees, product quality, and occupational health and safety. Stakeholders Communication Channels Topics Concerned Government & regulators Important conferences, policy advisory, case • Compliance in operation reports, inspections, documents exchange, • Corporate governance information disclosure, etc. • Energy conservation Shareholder & investors Shareholders’ general meeting, annual reports • Profitability • Operating strategy • Transparent disclosure Employees Employee satisfaction survey, employee • Salary and welfare activities, workers’ congress, employee • Development and trainings trainings, staff handbook, internal publications • Occupational health and safety Media Interviews on business operation, promotion of • Compliance in operation company culture, featured special events, media • Social influence conferences • Performance of social responsibility Suppliers Supplier evaluation, bidding meetings, • Fair cooperation negotiations on strategic cooperation, • Honest and promise keeping exchanges and visits • Coordinated development Customers Customer satisfaction survey, customer • Service quality complaint hotline • Information security Community Charitable activities, community activities, • Community welfare campus talks, internship • Community relationship • Employment promotion 4 DALIAN PORT (PDA) COMPANY LIMITED I 2018 ESG Report ESG Report We collected and organised topics in every aspect of ESG reporting, analysed the materiality level of the significance of each topic to the stakeholders and the Company’s sustainable development, and mapped out the matrix of materiality. 3 topics with high materiality and 8 relevant topics were selected as the key research objects of this report based on the requirements of ESG reporting and Dalian Port’s industrial characteristics. DALIAN PORT (PDA) COMPANY LIMITED I 2018 ESG Report 5 ESG Report Green Operation The logo of Dalian Port starts with the colour of Chinese green, representing the importance that the Company attaches to ecological civilisation, environmental protection and health and safety. In 2018, the Company attached great importance to energy conservation and emission reduction, strictly abided by national laws and regulations, accelerated the construction of a green low-carbon port in accordance with the green development concept of being resources- saving and environment-friendly, continuously optimised production process and operation method, adopted green equipment and facilities, promoted energy conservation, emission reduction and clean production, improved the energy efficiency and environmental quality in the port, and made efforts in achieving green, low-carbon, recycling, and intelligent development. Compliance in Operation Acting upon the basic national policy of environmental protection and resource conservation, Dalian Port, pursuant to series of policies and regulations issued by the General Office of the State Council, the State Oceanic Administration and the Ministry of Environmental Protection (the Coastal Waters Pollution Prevention and Control Plans, the Regulations for Environmental Protection in Construction Projects, the Water Pollution Prevention and Control Law, etc.), developed and issued the Environmental Protection Management Essentials of 2018 of Dalian Port and other systems as well as Environment Monitoring Plan successively, pressing forward with environmental protection on a solid basis and providing scientific and reliable