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ENN Energy Releases 2023 Environmental, Social, and Governance Report
MSCI ESG Rating Maintains AA for Two Consecutive Years
and Achieves one of the Best Performance in the Greater China Region
S&P Global Corporate Sustainability Assessment up to 63 Points
Sustainalytics Rating achieves 22.7 Points
CDP Rating Upgraded to B
HONG KONG, April 23, 2024 /PRNewswire/ — ENN Energy Holding Limited (Stock code: 2688.HK, "ENN Energy" or "the Group" or "the Company"), one of the largest clean energy distributors in China, released its 2023 Environmental, Social, and Governance Report.
Mr. Wang Yusuo, Chairman of ENN Energy, stated, "In 2023, ENN Energy forges ahead with unwavering determination, and leverages digital intelligence as a powerful lever for operation and development. Safety is the paramount in ensuring the development of the Company and has become the common awareness of all employees. ENN Energy has established a sound modern energy system that is low-carbon, high-efficiency, intelligent, and innovative. In corporate governance and business operations, the Company have always implemented the concept of sustainable development. While gradually achieving green and low-carbon operations for ourselves, we are also working closely with customers, suppliers, partners, and other social parties to reduce the cost of social energy use and draw a blueprint for a low-carbon and green future."
Achieving Prosperity through Steady Improvement
ENN Energy practices the concept of sustainable development, establishes an ESG governance system, and incorporates ESG factors into corporate decision-making and daily operations, fully leveraging internal efficiency to enhance the level of sustainability performance management. An ESG management system composed of the board of directors, the ESG committee, and the ESG working group has been established. A diversified board structure has been formed, maintaining an 18% proportion of female directors, with the goal of reaching 30% by 2025. Sustainability performance indicators such as the promotion of renewable energy use, identification of ESG-related risks and opportunities, and the enhancement of core executive team's ESG-related professional capabilities and construction are linked to the compensation of directors and executives, and an ESG-linked remuneration and clawback mechanism has been formed. ENN Energy has obtained the ISO 37301 Compliance Management System and ISO 37001 Anti-Bribery Management System certificates.
Safeguarding Urban Safety with Intelligence Technology
ENN Energy adheres to the safety concept of "Risks must be visible, Major risks identified and effectively managed". The Company comprehensively promotes the digital and intelligent transformation and upgrading of safety management, building a safety production management system that covers the entire value chain, and consolidating the foundation of safety operation. A safety management system organisation led by the Work Safety Committee has been established. The work-related accident rate per million working hours was 0.40, which has been below the safety management target of "reducing the million-hour work injury accident rate to 0.75 by 2030" for two consecutive years. With a total investment of 1.43 billion RMB in safe operation throughout the year. Safety capability building has been strengthened, with 427,697 safety training sessions held annually. The implementation of safety inspection work has been promoted, with a comprehensive safety inspection rate of 96.6% and a first-level leak hazard rectification rate of 100%. For three consecutive years, the number of work-related fatalities is 0.
Building a Low-carbon and Green Home through Digital Intelligence
ENN Energy actively seizes the opportunities of the country's low-carbon development era, achieving its own business low-carbon transformation while providing customers with more low-carbon and clean products and services. The Group keeps strengthening environmental management, tackling with climate change, and valuing biodiversity protection. In 2023, the greenhouse gas (GHG) emission intensity of the city-gas business has decreased by 28.5% compared to 2019, and the unit GHG emission intensity of the energy production facilities of the integrated energy business has decreased by 36.5% compared to 2019. The proportion of renewable energy and zero-carbon energy such as photovoltaic, biomass, geothermal, and hydrogen energy has increased to 21%, actively fulfilling the Decarbonisation Action 2030. Integrated energy solutions have been provided to promote social emissions reduction, assisting society and customers in reducing emissions by 56.1 million tons throughout the year.
Empowering Digital Intelligence Cities by Talent Motivation
ENN Energy regards every employee as an indispensable talent resource. By creating a broad business platform and a comprehensive talent inspiration system, the Company aims to achieve symbiosis, win-win, and joint development with its partners. Protecting employee rights, optimising the working environment, the employee satisfaction within the year is 4.52/5. Continuously strengthening the talent team, improving employee skills, and ensuring that 100% of employees are covered by training, with a training rate of 100%. Caring for employees' work and life, a total of 527 employees and their family members have been assisted through love interaction activities, with a total of 2.876 million RMB in assistance provided.
Shouldering Corporate Responsibility and Working Together in Solidarity
While promoting its own sustainable development, ENN Energy also makes full use of its technological and resource advantages to serve the optimisation of the energy industry structure, providing support for the sustainable development of ecological partners, customers, and society, and creating a harmonious ecosystem together with all parties. With a fundamental focus on serving customers, optimising customer service, and enhancing customer experience, the online gas purchase rate for customers is 85%, the customer satisfaction score is 90.8 points, and the customer problem resolution rate is 99.9%. Actively promoting technological innovation and intellectual property protection, with a total of 1,089 valid patents and 372 valid copyrights from 2023. Actively participating in charity, paying attention to environmental protection, education, and other public welfare undertakings, with a total donation of 23.06 million RMB, and organising volunteer activities for 277,455 hours.
Special Section on Climate-related Financial Disclosure
With reference to ISSB Climate-related disclosure standard and the recommendations of TCFD (Task Force on Climate-Related Financial Disclosure), ENN Energy has improved climate-related metrics and target management, conducted assessment of climate-related risks and opportunities, identified key risks and opportunities and developed countermeasures, thus strengthening capacity and resilience dealing with climate change.
Mr. Wang Yusuo concluded, "Looking to the future, New Energy will explore innovative demand-side carbon reduction mechanisms to promote a 'carbon economy' involving the participation of the entire society. We will deepen the development of the energy and carbon industry Internet platform to achieve optimal energy supply, improve system energy efficiency, and accelerate the deep integration of digital and intelligent technology with social production and life, meeting the people's expectations for a quality, low-carbon, and digital and intelligent life."
