Corporate Social Responsibility

The Group believes that a sound environmental, social and governance framework is vital to the sustainability and development of its business. The Group is willing to undertake greater social responsibility and strives to strike a balance between shareholders' interests and the interests of society.

The Group has integrated its objective of sustainable development into daily operation, through by enhancing resource efficiency, reducing pollutant emission and resources consumption and strengthening safe production measures as its fundamental operational policies.

Going beyond the pursuit of economic benefits, the Group has also proactively participated in charitable activities to make contribution to the society, devoting itself in promoting the local economic development and building a harmonious relationship with community.

Safety Responsibility

Production safety is the first priority of the Group. In line with the belief of "Safety is the Best Blessing for Employees and the Greatest Efficiency for the Enterprise", the Group implemented the production safety responsibility system and enhanced the production safety standards. By strengthening the construction of "Five Teams", which covers safety supervision, gas, water detection and drainage, electrical and mechanical and transportation, and reinforcing the safety training for all staffs, the Group has standardised and systematised the safety management and laid a solid foundation for safety production.

In accordance with relevant national laws and regulations, the Group has firmly performed its responsibility to maintain safety in the coal mines by strictly executing operational rules of safety and the relevant systems and regulations, carrying out tracings and inspections, conducting stringent evaluation and implementing strict but fair reward and punishment scheme.

Pursuant to the rules in respect of prevention of occupational diseases under the "Safety Regulations in Coal Mine", the Group has set up a function especially responsible for the prevention and management of occupational disease in coal mines. With appropriate facilities and measures, the employees have been well protected from occupational diseases. The prevention and control of occupational diseases have been safeguarded by mass surveillance.

Environmental Responsibility

The Group has established management systems with reference to relevant national laws and regulations, clearly defining the responsibilities of organisations and personnel at all levels in respect of coal mine resources, pollutant discharges and resource utilisation, thereby providing guidance for its environmental protection work.

Meanwhile, online monitoring systems has been installed over the emission ports as required by the environmental protection department of the PRC for real-time supervision of the execution of environmental protection policies by the Group.

Pollutants

In the operation of business, a range of pollutants are inevitably generated by the Group. As a responsible corporation, the Group strives to mitigate the environment pollution from its operation to the greatest extent through the implementation of pollution controls.

The Group's atmospheric pollutants are mainly generated from its boiler system. The Group has fully carried out flue-gas desulfurisation, control of soot emissions and boiler modification to reduce atmospheric pollutant emissions.

The water pollution is caused by mine water and domestic sewage. The Group has established mine water and domestic sewage treatment systems to prevent direct discharge of untreated sewage.

The Group's solid waste is mainly the coal gangue generated from underground mining. The solid waste which cannot be reused is stored at the designated site for pile up of the coal gangue. The Group will carry out land reclamation and greening work when appropriate so as to improve the ecological environment.

Use of Resources

The Group mainly uses power resources and water resources during the course of business in order to achieve its operational objectives. As a responsible corporation, the Group optimises the use of resources through energy saving and consumption minimisation.

The Group has optimised the power consumption of equipment through better organisation and arrangement, reasonable deployment, strengthening the repair, maintenance and modification of the electrical and mechanical equipment. At the same time, the consumption of electricity resources is further reduced by adjusting the sequence of operating procedures of transportation equipment at the mining site, removing the lighting of the unmanned underground area and reasonably shifting electricity use to off-peak hours and preventing the lighting of the ground office from constantly powered on.

The Group carries out mine water and domestic sewage treatment through the mine water and domestic sewage treatment stations and reuse the treated waste water to remove soot in underground mines, clean the equipment and perform environment greening work as well as other purposes.

Employee Responsibility

The Group attaches great emphasis on the people-oriented principle in respect of employee responsibility and is determined to protect the legal rights and interests of employees. The Group also cares about the physical and mental health of employees and proactively supports talent's growth so as to facilitate the long-term development of employees and enterprises.

ESG Recognition and Awards

The Group has strictly adhered to safety standards and vigorously promoted the construction of green mines, contributing more than RMB 20 billion to socio-economic development. The Company's "Safe and Stable Combustion Technology for Low-Concentration Coal Mine Gas" was recognized as one of the Top 10 ESG Cases among Beijing Municipal State-owned Enterprises. It also received the First Prize for Scientific and Technological Progress in Energy Conservation and Emissions Reduction (Carbon Neutrality Category) from the China Energy Conservation Association. The Company has been awarded several honors at municipal and provincial levels, including the "May 1st Labour Medal", "Shanxi Worker Pioneer", and "Shanxi Youth Work Safety Production Demonstration Post." In addition, the Party Committee was recognized as "Liulin County Advanced Primary-level Party Organization", and its model of integrating Party building with business operations has been repeatedly commended by higher authorities.