Contents
About This ReportMessage from the ManagementAbout Us
OutlookESG PerformanceGRI G4 StandardIndexReader Feedback Form
ESG
About This Report
This Report is the third Environmental, Social and Governance (ESG) Report issued by Beijing Capital Eco-Environmental Protection Group Co., Ltd. (hereinafter referred to as ''Capital Eco-Pro Group''), disclosingthe Company’s ESG practices to shoulder social responsibility in 2023, reporting corporation operations tostakeholders and helping shareholder, partners, employees and the public to deepen their understanding of theCompany.
Capital Eco-Pro Group has been regularly disclosing its annualSocial Responsibility Reportsince 2017, anddisclosing its Environmental, Social, and Governance (ESG) and Social Responsibility Report since 2021.This Report covers the entire Capital Eco-Pro Group, involving its subsidiary wholly-owned, holding andshareholding companies at all levels.For the sake of clarity and readability, ''Capital Eco-Pro Grou'',''the Company'', and ''we'' refer to Capital Eco-ProGroup and its subsidiary holding and shareholding companies at all levels in this Report. Additionally, ''CapitalGrou'' refers to Beijing Capital Group Co., Ltd., the parent company of Capital Eco-Pro Group.The data cited in this Report has been primarily obtained through statistical analysis of relevant materials. Theterm''as of the end of the Reporting Period'' refers to ''as of December 31, 2023''.The information regarding the Board of Directors, the Board of Supervisors, corporate governance, riskmanagement, and financial data included in this Report is sourced from the audited2023 Annual Report ofBeijing Capital Eco-Environment Protection Group Co., Ltd.Industry data primarily comes from the Ministryof Ecology and Environment of the People's Republic of China, the Ministry of Housing and Urban-RuralDevelopment of the People’s Republic of China, the National Bureau of Statistics, and several industry researchinstitutions. Unless otherwise specied, all cases and information in the Report are derived from Capital Eco-ProGroup and its subsidiaries.
The reporting period is from January 1, 2023 to December 31, 2023, part of the content dates back to previousyears.
Introduction
Reporting CycleReporting BoundaryReferenceData
Reporting Period
This Report is compiled in accordance with relevant industry-recognized standards based on our background,reecting our characteristics. We draw heavily on the following benchmarks and guidelines:
TheGuidelines on Social Responsibility (ISO 26000)published by the International Organization forStandardization (ISO)The
published by the Chinese Academy of Social Sciences (CASS)The Guidelines of Shanghai Stock Exchange on Environment Information Disclosure of Listed Companiespublished by the Shanghai Stock ExchangeAdditionally, the information referenced in this content index was reported under the Global Reporting InitiativeStandards for Sustainable Development Reports (GRI Standards) from January 1, 2023, to December 31, 2023.This Report is available in both paper and PDF forms.The PDF version of this Report can be downloaded at the website of Shanghai Stock Exchange (http://www.sse.com.cn/ ) and the Company's o?cial website (https://www.capitaleco-pro.com/ )For a paper copy of this Report, or for giving feedback, please call us at (86) 010-84552266, Ext. 8648.If you want to know more about our operation development and performance in social responsibility, please visitour o?cial website or refer to our annual reports.Unless otherwise stated in this Report, the currency for any amount herein is RMB.This Report has been reviewed and approved by the Board of Directors, the Board of Supervisors andsenior management of the Company. The Board of Directors and its directors warrant that there are no falseinformation, misleading statements or material omissions contained in this Report, and severally and jointlyaccept legal responsibility for the truthfulness, accuracy and completeness of the contents herein.
Reference Standards
Report Format
CurrencyReport Deliberation
Sustainable Development ManagementSpecial: Serve Customers, Integrating ''Urban Water,Solid Waste, Industrial Air and Resource Energy''Businesses for E?ciency Improvement
Operation Integrity, Adhering toBusiness EthicsStable Development, Enhancing RiskManagementJoint Value Creation, Establishing aResponsible Supply Chain
Premium Eco-Services,Building A Greener Future
Carbon Reduction Collaboration,Addressing Climate Challenge
Quality and Efficiency Improvement,Promoting Leaner Resource
ManagementGreen Operations,Boosting Sustainable Development
First-Rate Services, EnhancingQuality Management
People-Oriented, EmpoweringEmployee Development
Robust Development, ConsolidatingSafety Management
Hand in Hand, BoostingIndustry Development
Adherence to Original Aspiration,Contributing to Community Welfare
EnvironmentalPerformance
SocialPerformance
GovernancePerformance
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Capital Eco-Pro Group2023 Environmental, Social and Governance Report
Message from the Management
Upholding the mission of ''To Build Our Clean,Beautiful and Prosperous Homeland'', Capital Eco-Pro Group has always been committedto becoming a trustworthy leader in environmental sustainability. Keeping unswerving commitment for more than 20 years, we have heldfast to the philosophy of green development, adhered to the core values of ''serving customers, continuous innovation, sincerity, andsharing responsibility'', and promoted the comprehensive progress of the enterprise with strong social responsibility, thereby contributingto build a beautiful China.Robust development, consolidating the foundation. We adhere to steady business, continuously optimize the corporate governancestructure, bolster risk management, and ensure compliant operations. We build a bridge of trust with all stakeholders to stride towards afuture of high-quality development.Quality first, drawing blueprint together. Guided by customer needs, our business activities are carried out based on the highestquality standard. We are not only deeply engaged ecology and environment governance, but also boosting the overall low-carbondevelopment. We adhere to the innovation and extensive application of emission reduction technology and low-carbon resourcerecycling technology, and help the country achieve ''carbon peaking and carbon neutrality'' goal as soon as possible. Capital Eco-Pro Group assumes the role as a state-owned enterprise and makes notable contribution to the country’s green development.
Open collaboration, striding hand in hand. We work together with our employees to strengthen collaboration with our supplychain partners and jointly promote economic and social development. Capital Eco-Pro Group has always adhered to the people-oriented principle of, providing an equal, diverse, and inclusive workplace for all employees and continuously improving theirsense of well-being and belonging. We work with our partners to build an open, inclusive, interconnected and mutually beneficialgreen supply chain, and realize innovative collaboration and common development. In addition, Capital Eco-Pro Group isalso actively engaged in social welfare undertakings to effectively improve public security and increase social well-being.
In 2024, Capital Eco-Pro Group will observe the national ecological and environmental development requirements toimprove the corporate development strategy, fully leverage the advantages of the ''urban water, solid waste, industrial airand resource energy''full-service chain, unswervingly follow the new development philosophy of ''innovation, coordination,green, openness and sharing'', and consistently showcase new achievements in promoting the high-quality development.
As an innovative backbone in economic andsocial development, Capital Eco-Pro Groupwill provide ''hard core'' support for high-quality development. The Company will deeplyintegrate ESG concept into its daily operationsin the course of sustainable development,and formulate development plans from theperspective of human—nature harmoniouscoexistence, thus establishing a high-qualitydevelopment pattern featuring efficientresources, clean environment, and safe ecology.
Green and low-carbon industry is an importantdirection for the transformation of enterprisedevelopment mode. As a leading enterprise inenvironmental protection industry and a state-owned listed company, Capital Eco-Pro Groupwill proactively assume social responsibility,improve green manufacturing, bolster innovationcapability, promote sustainable developmentof the whole industry chain under greengovernance, and create better value for thesociety.
Liu Yongzheng:
Chairman of Beijing Capital Eco-Environmental Protection GroupCo., Ltd
General Manager & Director of Beijing Capital Eco-Environmental Protection Group Co., Ltd
Party Secretary & Director of Beijing Capital Eco-Environmental Protection Group Co., Ltd
Li Fujing:
Zhang Meng:
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About This Report Message from the Management About Us Sustainable Development Management SpecialCapital Eco-Pro Group.2023 Environmental, Social and Governance Report
The customer-centric strategy focuses oncustomer requirements, emphasizestechnological guidance and operation-based management, creates professionalvalue for customers, continues to sharegrowth with customers, and enhancescustomer stickiness.
The value diversification strategyfollows project-based, product-oriented,and innovative development path. Itis customer-driven, diversifies productportfolios and provides customizedintegrated solutions.
The ''triple-element drive'' strategy enhancescore competitiveness. It systematicallyimproves the Company's technology +operation + industry integration capability,and continues to consolidate the foundationfor technological development. The''operational excellence''element focuseson the efficient operation of environmentalassets, and upgrades managementcapabilities in terms of ''people, finance,materials, and data''. The ''financial assetmanagement'' element facilitates fund-asset-capital circuit.Trustworthy Leader of EnvironmentSustainable Development
Organizational support. Continuouslypromote the upgrading of front, middleand back organizations, constantly sortout rights and responsibilities as well ascollaboration mechanisms, and createa strategy-oriented operational controlmodel.
Talent support. Establish a di?erentiatedtalent selection, cultivation, retentionsystem to provide sufficient talent forthe development of various businesslines of the enterprise and realize value-added human capital.
Digitalization support. Continuously promotedigital transformation, achieve onlineservices and assistant decision-making,implement graphical management, andpromote data empowerment.
Three supports
Three strategies
One goal
About Us
Company Prole''Ecology +''
StrategicDevelopment PlanBeijing Capital Eco-Environmental Protection Group Co., Ltd. (''Capital Eco-Pro Group'') wasestablished in 1999. It is a listed agship company (600008.SH) in the environmental protectionindustry controlled by Beijing Capital Group Company Limited, and a top 500 enterprise in China.The Company has been deeply engaged in the environmental protection industry for more than20 years, providing customers with e?cient, intelligent, and green solutions for ''urban water, solidwaste, industrial air and resource energy'' in the elds of urban environment, municipal utilities andcorporate environmental protection, and energy conservation.
In 2023, Capital Eco-Pro Group reached a new strategic consensus on the ''Ecology +''strategy and upgrading development. We will continue to promote target and valueupgrading-In terms of goal upgrading, we will optimize the strategic target system andenhance the value orientation of corporate development guided by the vision of ''TrustworthyLeader of Environment Sustainable Development''. In terms of value upgrading, we followcustomer needs, clarify the solution upgrade path, and actively innovate diverse businessdesign ideas, ultimately shaping access, withdrawal, maintain, and pilot strategy, and newdevelopment paths, and striving to achieve strategic upgrading driven by solutions.
To Build Our Clean,Beautifuland Prosperous Homeland
VisionMission
Trustworthy Leader ofEnvironment SustainableDevelopment
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Capital Eco-Pro Group2023 Environmental, Social and Governance Report
Industrial enterprise exhaust gas treatment serviceProvide a comprehensive package of waste gas prevention and control services for the wholeindustry chain, including planning, design, investment, construction, operation and equipmentmanufacturing, etc., in alignment the emission characteristics of different industries, , helpenterprises achieve low-carbon energy conservation, ultra-low emissions, cost reduction andefficiency improvement, and facilitate continuous and stable compliance with governanceobjectives.
Enterprise energy-conservation management serviceOriented by the ''carbon peaking and carbon neutrality'' goal, help enterprises carry out low-carbontransformation, establish a full-life cycle carbon neutrality management system, provide practicalenergy-saving and consumption-reducing services based on ''one policy for one enterprise'', andassist customers in reducing energy costs.
Provide services such as urban-rural water supply, sewage treatment and reclaimed water,integrated water supply and drainage, and pipeline network operation and maintenance, and builda comprehensive system for water resources, water safety, and water environment protection.Provide integrated services for water ecological environment such as sponge city, black andodorous water treatment, and village water environment improvement.
Integrated water and water environment service
Provide a full-process solution of ''classication-collection-storage-transportation-disposal-utilization''.Provide integrated services for solid waste treatment and disposal, including urban sanitationintegration, domestic waste incineration and recycling, organic waste anaerobic recycling and soilremediation.Sanitation, solid waste disposal and integrated services
Relying on intelligent decision-making system, provide an integrated solution of ''investigation,management and improvement'' to assist cities and industrial parks in e?ciently and accuratelycontrolling the atmospheric environment, achieving stable and continuous improvement in airquality.
Atmospheric environment improvement service
Provide municipal heating services.Integrated carbon neutrality solution covering ''carbon peaking and carbon neutrality'' consultation,energy conservation and carbon emission reduction, carbon asset management and transaction.
Green energy and energy management services
Business Layout
Capital Eco-Pro Group adheres to its main business, optimizes business segments, andengages in transformation towards standardization, productization, and systematization,providing high-quality and e?ective services for di?erent customers with di?erent needs.By the end of 2023, the Company undertook projects in 28 provinces (autonomousregions and municipalities) and more than 140 prefecture-level cities across the country,with a water treatment capacity of 26.95 million tons per day and an annual domesticwaste treatment capacity of 15.27 million tons.
Enterpriseenvironmental protection
andenergy conservationUrbanenvironmentandmunicipal utilities
Industrial water system serviceIntegrate industrial water supply, circulating water, waste gas treatment, regeneration and zeroemissions into the overall water system, help enterprises reduce pollutant and standardizeddischarge, reduce freshwater consumption, and e?ectively control system operating costs.
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About This Report Message from the Management About Us Sustainable Development Management SpecialCapital Eco-Pro Group2023 Environmental, Social and Governance Report
Key Performance in 2023Economic performanceEnvironmental performance
Social performanceGovernance performance
Revenue
21.32
RMB billion
Auxiliary water ratio
3.03%
Investment projects
Number of shareholder meetings
Basic earnings per share
0.22
RMB/share
Treatment capacity of reclaimedwater in water shortage areas
1,842.3710,000 T
Major safety accident
Anti-corruption education trainingper person
hour
Total operating cost
18.39
RMB billion
Unit waste reduction
0.13
tCO
e
Safety training1,400Session
Signing rate of the SocialResponsibility Letter and theIntegrity Statement of approvedsuppliers100%
Total prot
2.67
RMB billion
Water supply and production and marketing gap
13.14%
Investment amount
3.56
RMB billion
Number of board meetings
ROEWA
5.62%
Coverage of online risk monitoringof water quality in sewage plants
100%
Work-related fatalities
Person
Participants in integrity training200+
Enrollment
Owners’ equity
38.38
RMB billion
On-grid clean energy
2.16
billion kWh
GHG emission reduction
121.47
10,000 tCO
e
Consumption assistance
251.42
RMB 10,000
Approved suppliers that have obtained ISO 9001, ISO 14001, ISO45001, and other certications100%
Net prots attributable to theParent
1.61
RMB billion
Sewage treatment capacity inwater shortage areas96,521.39
10,000 T
R&D investment
0.17
RMB billion
Major litigation, arbitration, and violation punishmentsNot occurred
Total assets
109.36
RMB billion
Mine restoration area
85.07
10,000 m
Investment in safety technicalupgrade2,301
RMB 10,000
Deployment of network securityprotection100%
Social contribution per share
1.04
RMB
Emission reduction for net on-grid energy
5.62
GHG emission intensity
13.10
Honors in 2023
Capital Eco-Pro Group actively performs its social responsibility to realize the integrationof economic and social benets. In addition, the Company has won numerous awards in2023, showcasing its mission and achievements in social responsibility performance andsustainable development promotion. In 2023, the Company’s social contribution valueper share was RMB 1.04.
Capital Eco-Pro Group’s Honors in 2023 (Partial)The second prize of the 2022 ChinaIndustry-University-Research CooperationInnovation and Promotion AwardFebruary 2023
Shortlisted into the ''Double-hundredEnterprises (One Hundred GrowingEnterprises and One Hundred InnovativeEnterprises)'' and ''Science ReformEnterprises'' List by SASACMay 2023
Top 10 Most Inuential
Water CompaniesMarch 2023
The Recommended Catalogue ofSmart Water Environment Innovation
Application Cases
June 2023
The second prize of Science andTechnology Award of All-China
Environment FederationMarch 2023
The third prize of the 1st NationalEnterprise Digital Scene InnovationProfessional Competition of the 4th ChinaIndustrial Internet CompetitionMay 2023The second prize of 2023 Science andTechnology Award of Beijing HydraulicEngineering SocietyApril 2023
The second prize of 2022 Science andTechnology Progress Award of BeijingScience and Technology AwardAugust 2023
Beijing New Technology and NewProduct (Service) CerticateSeptember 2023The third prize of''Maker Beijing 2023'' SME Innovationand Entrepreneurship CompetitionNovember 2023
The second prize of 2023 (the 9th)National Enterprise ManagementInnovation AchievementsDecember 2023
The second Prize of the 2022Productivity Promotion Award (Innovative
Development)September 2023
Best Practice of Board of Directors ofListed Companies in 2023 of ChinaAssociation for Public CompaniesNovember 2023
The 18thBeijing New Technologyand New Product (Service) CerticationNovember 2023
2023 Top 50 Environmental
Enterprises in China
December 2023
tCO
e /10,000kWh
10,000 tCO
e /RMB billion inrevenue
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About This Report Message from the Management About Us Sustainable Development Management SpecialCapital Eco-Pro Group2023 Environmental, Social and Governance Report
SustainableDevelopmentManagement
ESG GovernanceStructure
StakeholdersCommunication
Capital Eco-Pro Group follows the ''Ecology +'' strategy, continuously strengthenscommunication with stakeholders, identies and sorts out major ESG-related materialissues, and rigorously facilitates seamless integration of sustainability concepts andenterprise development and management, with the aim of creating a new prospect ofhigh-quality corporate development.Capital Eco-Pro Group complies with laws and regulations such as the Company Lawof the People’s Republic of China, as well as the SSE information disclosure guidelines.The Company continues to improve its ESG governance structure with the Boardof Directors as the leading body, the Strategy and Development Committee as thesupervisory level, and the ESG Working Group as the executive body, safeguarding theCompany's strategic development plan.
Capital Eco-Pro Group is dedicated to establishing mutually benecial partnerships withstakeholders, conducting ESG management improvement and ESG implementationbased on material issues requested and concerned by stakeholders, and fullling theCompany's commitment to sustainable development.
Stakeholders and Reponses of Capital Eco-Pro Group
StakeholderResponse
Governmentand regulators
Shareholders andinvestors
Customers
Community
Employees
Partners
?Periodic report?Supervision and inspection
?Shareholder meeting?Performance release
?Customer satisfaction survey?Customer visit
?Public welfare donation?Community representativesurvey
?Sta? congress?Internal and external training
?Regular communication meeting?Cooperation and development
?Visitor reception
?Participate in industryconferences?ESG release?Periodic report andtemporary announcement
?O?cial Company website and social media interaction?Cooperation program
?Community public welfare activity?Volunteer activity
?Employee care activity?Solicit opinion
?O?cial Company website?E-commerce platform
?Information disclosure
?Investor communication?O?cial Company website
?O?cial Company website andsocial media interaction
ESG Governance Structure of Capital Eco-Pro Group
ESG Governance StructureIn 2023, Capital Eco-Pro Group continued to engage in ESG governance and achieved fruitful results. The Companycontinued to participate in multiple international ratings and took lead in the industry.Rating202320222021FTSE Russell3.02.51.6MSCIBCCCCCCCSI 500AA//WindAABB
The Board of Directors
The ESG Working Group
The Strategic and Sustainable
Development Committee
Group Leader:
General ManagerDeputy Group Leader:
Deputy General ManagerResponsible Departments:
The MarketDevelopment Centre, O?ce of the Board
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Capital Eco-Pro Group2023 Environmental, Social and Governance Report
Material Issues
ESG Materiality Matrix of Capital Eco-Pro Group in 2023
In 2023, Capital Eco-Pro Group identified and sorted out the following 23 materialESG issues through peer benchmarking analysis, external policy research, as wellas domestic and international capital market requirements, and prioritize them toprovide scientic guidance for the Company’s ESG strategic planning, goal setting, andinformation disclosure.
Importance to Capital Eco-Pro GroupMaterial issues of low importance
Material issues of High importanceMaterial issues of Moderate importance
Importance to Capital Eco-Pro Group
Emissions management
Biodiversity protectionEnvironmental management
Energy use benetsWater resource managementResponse to climate change
Green supply chain
Stakeholder engagement
ESG governance
Business ethics andanti-corruption
Employee responsibilityProduct responsibilityEnvironmentCorporate governanceCommunityCommunity contribution
Community engagement
Occupational health and safety
Employee development and communication
Lawful employment
Employee rights and benets
Intellectual property right protection
Information security and customer privacy
Customer service
Product quality andsafety management
Technology and innovation
Economic and e?cient ecologicalenvironmental public services
Responding to theUnited NationsSustainableDevelopmentGoals (SDGs)
Capital Eco-Pro Group is dedicated to integrating the United Nations SustainableDevelopment Goals (SDGs) with its business development, actively responds tomaterial issues identied, and bolsters corporate sustainable development performancein multiple dimensions in line with the material issues.
Emissions management
Biodiversity protection
Environmental management
Economic and e?cient ecologicalenvironmental public services
Environment
Governance
Social
/
/
Response toclimate change
ESG governance
Stakeholderengagement
Business ethics and
anti-corruption
Energy use benets
Water resourcemanagement
Product quality and safetymanagement
Technology and innovation
Customer service
Intellectual property right
protection
Lawful employment
Employee rights and
benets
Employee
development and
communication
Occupational
health and safetyCommunity
engagement
Community
contributionSupplier management
Green supply chain
Information security andcustomer privacy
First-Rate Services,Enhancing QualityManagement
Joint Value Creation,
Establishing aResponsible Supply
ChainStable Development,Enhancing Risk Management
Operation Integrity,Adhering to BusinessEthics
Sustainable DevelopmentManagementPremium Eco-Services,Building A Greener Future
Carbon ReductionCollaboration,AddressingClimate Challenge
Quality andE?ciencyImprovement,PromotingLeaner ResourceManagementGreen Operations,BoostingSustainableDevelopment
People-oriented,Empowering EmployeeDevelopmentRobust Development,Consolidating SafetyManagementHand in Hand, BoostingIndustry DevelopmentAdherence toOriginal Aspiration,Contributing toCommunity Welfare
Supplier management
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About This Report Message from the Management About Us Sustainable Development Management SpecialCapital Eco-Pro Group2023 Environmental, Social and Governance Report
Serve Customers and Integrate ''Water, SolidWaste, Air and Resource Energy'' Businesses forE?ciency ImprovementBased on customer needs, Capital Eco-Pro Group has deployed its businesses across the fullindustrial chain of environmental protection, facilitating high-quality urban development with rst-rateservices. The Company looks into customer needs in major cities, focuses on pain points in customerneeds, and creates advantageous strongholds. Centering on core capabilities, we select businessmodels, create business portfolios with complementary advantages and coordinated development, andprovide customers with diversied green and low-carbon value services.
Capital Eco-Pro Group’s Business Presence
Special
Since the investment in the Beijing—Tongzhou Expressway, CapitalEco-Pro Group has undertaken over 40 projects in Beijing, covering12 districts. The business activities involve elds such as sewage andreclaimed water treatment, urban sanitation, air pollution preventionand control, water environment protection and municipal heating. TheCompany has delivered several industry benchmarking projects such assanitation project in Dongcheng District, west reclaimed water projectin Yanqing District, and air pollution comprehensive treatment project inChaoyang District.As the pacesetter in protecting the capital’s economic development andecology & environment, the Company has successively served majorevents such as the Beijing Winter Olympic Games, and the celebrationof the 100
thanniversary of the founding of the CPC. In 2023, part ofthe Company’s sanitation project—the Dongsi North Street and JinbaoStreet maintained the title of ''inspection free streets'' due to theirexcellent service qualities.
Deeply Rooted in Beijing:
Striving to Be the Pacesetter in Protecting Beijing’sEconomic Development and Ecology & Environment
Since its establishment in Shihezi, Xinjiang, Capital Eco-Pro Grouphas been dedicated to its businesses and has successively investedand completed benchmark projects such as the construction andupgrading of Shihezi sewage treatment plant, the reuse of reclaimedwater, the construction of the 2nd sewage treatment plant, andthe demonstration treatment project for heavy pollution weather inwinter. The Company has achieved steady growth in project benets,gained brand public praise, and won recognition from customers.
In 2023, the Company was granted the franchise for the domestic wasteincineration power generation project in Shihezi by virtue of its leadingindustry advantages and professional team. This project facilitated theCompany’s ''urban water, solid waste, municipal air'' business layout inShihezi, and comprehensively covered sewage and reclaimed watertreatment, pipeline network operation and maintenance, comprehensiveatmospheric pollution prevention and control, and domestic wasteincineration recycling, showcasing the market competitiveness ofCapital Eco-Pro Group’s coordinated development strategy and furtherdemonstrating the achievements in serving customers.
Rooted in Shihezi:
Brighten Pearl of the Silk Road
Shihezi Shihezi
Beijing Beijing
Huainan HuainanJiujiangJiujiang
NanchangNanchangTonglingTongling
Sewage and reclaimedwater treatment
Air pollution preventionand controlAir pollution preventionand controlUrbansanitationWater environmentprotection
Sewage and reclaimedwater treatmen
Domestic wasteincineration recyclingAir pollution preventionand control
Pipeline network operationand maintenance
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Capital Eco-Pro Group2023 Environmental, Social and Governance Report
By virtue of its excellent operational capabilities and trustworthy servicequality, Capital Eco-Pro Group has been serving Huainan City, AnhuiProvince for 20 years. We has successively undertaken more than 30projects in Huainan, catering to the comprehensive needs of customersin the elds of water supply and drainage integration, water environmentmanagement, non-compliant solid waste landfill treatment, and airpollution treatment.In 2023, Capital Eco-Pro Group applied intelligent technological servicesto realize a year-on-year decrease of 3.8% in average PM
2.5
concentrationin Huainan High-tech Zone. Since its service the local PM
2.5
had beenreduced for four consecutive years through systematic treatment. Theair quality in Huainan saw historic improvement, receiving governmentcommendation letters consecutively.
Stationed in Huainan:
Reinvigorat the National Novel ComprehensiveEnergy Base
Since 2018, Capital Eco-Pro Group has been serving the atmosphericpollution prevention and control project in Jiujiang City, JiangxiProvince, mainly including daily air quality consultation andscheduling, air quality value monitoring and analysis, atmosphericpollution source tracing and screening, pollution weather emergencyplan revision, emergency emission reduction list development,equipment operation and maintenance, and component analysis.
Since its service, the annual average concentration of PM
2.5
in JiujiangCity has been stabilized for three consecutive years, reaching the nationalClass-II standard, ending the predicament of ranking the last in theprovince. In 2023, the average PM
2.5
concentration in Jiujiang City was
33.1 micrograms per cubic meter, ranking rst in the province in terms
of change rate, and days with good air quality accounted for 91.2%,with a year-on-year increase of 3.8 percentage points. Both indicatorsoverfulfilled the provincial targets, and the PM
2.5
concentration rankedhigher in the province.
Capital Eco-Pro Group has served Tongling City in Anhui Provincefor 20 years, the business activities had been expanded from watersupply to drainage, from downtown to the suburbs, thus presentinga new outlook of urban-rural water supply and drainage integration.In 2019, the Binjiang Water Plant undertaken by Capital Eco-Pro Groupwon the ''Tongdu Cup Award'', the highest award for constructionproject quality in Tongling City, and the ''Mount Huangshan Cup Award'',the highest award for construction project quality in Anhui Province.In terms of the integrated layout of urban-rural water supply, theCompany’s rural tap water supply network upgrading project (PPP) inZongyang County has an area of about 1,830 km
, covering 13 townships,169 administrative villages, and serving a population of about 670,000.Currently, the Company operates 7 water supply plants and 47 watersupply pump stations in Tongling, with a daily water supply capacity of630,000 tons and a water supply network of 4,600 km. In addition, itoperates 5 sewage treatment plants with a total treatment capacity of163,000 tons per day, 38 stormwater and sewage pump stations, anda stormwater and sewage network of 661 km. We have developed aunique enterprise characteristic that integrates plants, networks, stations,and flood control, which has generated good social and environmentalbenets.
In 2011, Capital Eco-Pro Group was granted the construction andfranchise for the Quanling Domestic Waste Incineration Power PlantProject Phase I in Nanchang City, Jiangxi Province. This project wasthe rst domestic waste incineration power plant completed and put intocommercial operation in Jiangxi Province, contributing a 30% reductionin urban-rural domestic waste in the three counties and six districts ofNanchang City.Upon commercial operation, the operational indicators, efficiencyindicators, and environmental emission indicators reached the leadingdomestic level. By virtue of its outstanding operational strength, CapitalEco-Pro Group successfully obtained the franchise for Phase II of thepower plant in 2020, the garbage disposal capacity was improved from1,200 tons per day to 3,000 tons per day, disposing more than 60% of thedomestic waste in Nanchang City and providing a powerful guarantee forNanchang City to promote the full incineration and recycling of domesticwaste.
Serving Jiujiang:
Provide Lushan Mountain with Clear Sky
Based in Tongling:
Turn a New Chapter in Urban-Rural Water Supplyand Drainage Integration
Layout in Nanchang:
Safeguarde Waste Recycle Process
Integrated services ofurban-rural watersupply
Water supply anddrainage integration
Domestic waste incinerationrecyclingSewage and reclaimedwater service
Air pollution preventionand control
Water supply anddrainage integration
Soil remediationAir pollution prevention and control
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EnvironmentalPerformance
Capital Eco-Pro Group actively addresses climate change and ecological preservation,collaborates to decrease pollution and carbon emissions, and improves the e?ciencyof energy and resource utilization to co-build a more harmonious, prosperous, andenvironmentally pristine world.
E
Premium Eco-Services,Building A Greener FutureCarbon Reduction Collaboration,Addressing Climate Challenge
Quality and Efficiency Improvement,Promoting Leaner Resource ManagementGreen Operations, BoostingSustainable Development
Capital Eco-Pro Group is acutely aware of the vital role water resources play and isactively confronting water-related challenges to ease the burden on regions facing watershortages. The Company has initiated water resource risk assessments, continuouslyexploring alternative water sources, innovating and developing smart water ecosystemproducts, and reinforcing the protection and recharge of water sources. These e?ortssupport the sustainable development of water resources in the regions where theCompany operates.
The Company attaches great importance towater sources, evaluates potential risks for itsprojects, and promptly develops strategies tomitigate these risks. Throughout our businessoperations, we have focused on harnessing andutilizing recycled water, and established facilitiesfor the reuse of recycled water and reclaimedwater. In the waste-to-energy project, we explorethe use of recycled water to reduce groundwaterconsumption. Additionally, we prioritize thequality of water at source locations, develop andapply water-saving technologies, and enhancethe e?ciency of water use in our operations toease the burden of water resources.In 2023, the Company achieved 100% coverageof online risk monitoring for water quality inits sewage treatment plants. In 2024, we willcontinue increasing the coverage of waterquality risk monitoring in our water supply plants.
Capital Eco-Pro Group is dedicated to o?ering society integrated environmental solutions characterizedby ''e?ciency, intelligence, and sustainability'', thereby jointly protecting our planet as a beautiful andecologically viable home.
Premium Eco-Services, Building A GreenerFuture
Alleviate WaterResource Stress
Coverage of online risk monitoring forwater quality100%
sewage treatment plants
The criteria for designating water-scarce areas is based on the UN-Water (https://www.un.org/zh/waterforlifedecade/scarcity.shtml), with the data on the total regionalwater resources sourced fromChina’s 2022 Water Resources Bulletinreleased by the Ministry of Water Resources and regional population data sourced from the NationalBureau of Statistics.
High-standard Sewage Treatment Contributes to Local Water Source ProtectionCaseThe Shiwuli River Sewage Treatment Project in Hefei City,Anhui Province, is designed with a capacity of 300,000tons per day, and an additional recycled water capacity of100,000 tons per day. The 35-kilometer-long Shiwuli Riveroriginates from the southeastern foothills of Dashu Mountainand was historically associated with black and stinky waterand water quality below Class V. Capital Eco-Pro Groupadopted main processes such as oxidation ditches, MSBR,and multi-stage A
O for the treatment. In 2020, the project’splant was upgraded to meet the Class I standards set outin theWater Pollutant Emission Limits for Urban SewageTreatment Plants and Main Industrial Sectors in the ChaohuBasin(DB34/2710-2016), which improved the water qualityof the Shiwuli River and the receiving water in ChaohuLake. In 2023, the Shiwuli River Sewage Treatment Planttreated 86,943,700 tons of sewage annually, effectivelycontributing to the pollution control of the Shiwuli Riverand Chaohu Lake, protecting local water resources, andalleviating the urban water resource stress.
Continuously Explore Water System Services for Industrial EnterprisesCase
Tagal’s ''Factory Water System Outsourcing Operation Project'' marks an expansion of our service model within the industrialwater treatment sector. The project employs a desalted water treatment system, a circulating cooling water system, and awastewater treatment system, with a water resource recovery rate of over 60%. In 2023, approximately 29,150 tons of waterwas saved, e?ectively enhancing the recycling rate of water resources and alleviating the pressure on urban water resources.
Enhance the Use of Alternative Water Sources to Alleviate Local Water Resource StressCaseThe waste-to-energy project in Yutian County, TangshanCity, Hebei Province promotes the use of alternativewater sources. By using recycled water as the source forproduction, the project saves 290,000 tons of groundwaterannually. Additionally, the project fully recycles various typesof wastewater. The treated leachate that meets standardsis reused as circulating water and the treated domesticsewage that meets standards is reused as greening water,resulting in an annual water conversation of 30,000 tons.
water supply and sewage treatmentprojectswith
18.42
million tonsof reclaimed water treated
with a total of
965.21
million tonsof sewage water treated during thereporting periodwith
599.49
million tonsof water supply
In 2023,in water shortage areas, Capital Eco-Pro Group had
2221
Environmental Performance Social Performance Governance Performance
Capital Eco-Pro Group2023 Environmental, Social and Governance Report
Capital Eco-Pro Group is dedicated to developing a comprehensive green solutionfor the resourceful management of urban solid waste. By employing innovativemanagement techniques throughout the entire process, we offer integrated servicesthat span urban and rural cleaning, waste-to-energy action, and soil rehabilitation,collectively elevating the city’s capacity for turning waste into valuable resources.PromoteComprehensiveManagement ofSolid Waste
Capital Eco-Pro Group aims to achieve continuous improvements in urban air quality,providing integrated solutions for atmospheric environmental monitoring, consulting,and treatment, as well as waste gas treatment services for industrial enterprises, tocontribute to winning the battle for blue sky protection.ImproveAtmosphericEnvironment
Assist Zaozhuang City in Winning the Battle for Blue Sky ProtectionCaseIn 2023, Capital Eco-Pro Group supported Zaozhuang City, Shandong Province, in optimizing its air pollution control strategiesby proposing a ''181'' rapid response mechanism
to swiftly eliminate the impact of pollution. This initiative developed a uniqueair pollution management model tailored to Zaozhuang's characteristics. With the support of the team's professional technicalexpertise as well as comprehensive and detailed services throughout the process, Zaozhuang City witnessed significantimprovements in air quality and made a substantial leap in the national air quality rankings among 168 cities.
The Company, relying on the Intelligent Supervision Platform for Ecological Environment of Zaozhuang City, established 1 command center, optimized, and improved 8major working mechanisms, and thoroughly implemented 1 set of theories.
Recycle Contributes to the Waste-to-energy Project
CaseThe Huizhou Waste-to-energy Project in Guangdong Province, a cornerstone initiative by Capital Eco-Pro Group, boasts adaily waste processing capacity of 1,600 tons and caters to a community of 2 million residents. In 2023, the project processedan actual waste volume of 645,200 tons, generating an annual on-grid energy of 260 million kWh, replacing the equivalentof 75,400 tons of standard coal, thus reducing 426,900 tCO
e. These e?orts have signicantly contributed to the city's wastemanagement by reducing pollution and decreasing carbon emissions.
Recycle Food Waste and Setting an Example for Urban Waste Recycling
Case
Capital Eco-Pro Group has established a cutting-edge facility in Xiaoshan District, Hangzhou, Zhejiang Province, that specializesin the conversion of food waste into biofuel, which is among the select few in China to incorporate a biodiesel production unit,seamlessly processing both food and kitchen waste under one roof. In 2023, the project achieved a biogas generation capacityof 12.16 million kWh, meeting the facility’s own electricity needs while producing nearly 2.11 million kWh of on-grid energy.
Mine Restoration Ensures Ecological Governance in DaliCase
In 2023, Capital Eco-Pro Group supported the ecological restoration of historically abandoned mines in Binchuan County, DaliBai Autonomous Prefecture, Yunnan Province. The project restored a total of 850,700 square meters, primarily focusing onnatural recovery with the aid of intelligent engineering measures. By utilizing a self-developed innovative eco-based materialand combining it with a new construction technique guided by the ''substrate-vegetation-rock mass'' ecological enhancementmechanism, the project signicantly improved the e?ectiveness of slope restoration. This initiative achieved a unity of social,economic, and ecological benets.
Continuous Emission Monitoring System (CEMS) Operation and Maintenance Project of Beijing
Shougang Co., LtdCaseCapital Eco-Pro Group strictly adheres to laws, regulations, industry standards, and technical specications related to CEMSoperation and maintenance, providing excellent services for Beijing Shougang Co., Ltd. We ensure that accurate CEMS data isstored completely and uploaded promptly. We, based on the CEMS data, e?ectively monitor the e?ciency of emission control,provide solid evidence for environmental management by related departments, o?er a basis for improvements in productionand treatment processes, provide data support for pollution discharge fees and total quantity control, and monitor and manageenvironmental protection equipment. Additionally, we enhance the e?ciency of environmental facilities, reducing operating costs,and determining whether pollutant concentrations and total emissions from polluting enterprises meet standards or not.
2423
Environmental Performance Social Performance Governance PerformanceCapital Eco-Pro Group2023 Environmental, Social and Governance Report
Annual Water Environment Management Awards
July 2023
September
2023
November2023
?Huai'an Capital Eco-Pro Co., Ltd.’s won the 2023 Excellent Project in the GeographicInformation Industry (Gold Award)
?Ningxia Capital Sponge City Construction and Development Co., Ltd.'s Guyuan SpongePark project won the 2023 Asia-Pacic Landscape Architecture Award for Excellence inthe Built Green Infrastructure
?Fuzhou Capital Eco-Pro Co., Ltd. was awarded the 2023 Highest Quality LevelEvaluation Certicate of Municipal Projects
Capital Eco-Pro Group responds to the national call for ''promoting ecology protectionand high-quality development in the Yellow River basin'', supporting the governance ofthe water ecology environment and the construction of ecology civilization in the YellowRiver basin.''Yellow RiverProtection''
?Continuously optimize the ecology environment along the Yellow River basin by establishing 9 project companies andoperating 11 sewage treatment plants in Jinan, Heze, Jining, and Dongying through which the Yellow River ows;?Upgrade and retrofit existing sewage treatment plants in Dongying and Jining, improving the effluent water quality fromLevel 1A to near-Class III standards, further reducing the emissions of COD and nitrogen and phosphorus pollutants, with atreatment capacity of 140,000 tons per day, and contributing to the ''zero-emission and level-improvement'' goal for the YellowRiver basin.
?Implement the construction of a new industrial sewage treatment plant projectin the Jinqiao Economic and Technological Development Zone of HohhotCity, with a treatment capacity of 30,000 tons per day, which will signicantlyreduce the discharge of characteristic pollutants such as fluoride, oil, andsilicon dust suspended solids from industrial wastewater and enhance theregional water environmental quality.?
domestic sewage treatment capacity of 570,000 tons per day of Inner MongoliaHohhot Capital
?Actively participate in the ''Purified Waterinto the Yellow River'' project, thoroughlyreviewing existing sewage projects in theregion, coordinating with the governmentauthorities responsible for these projectsto develop technical plans for upgradinglevels, and carrying out technical analysis,demonstration, and planning of investmentschemes.
?We have a sewage treatment capacity of
200,000 tons per day in Taiyuan, 180,000tons per day in Yuncheng, and 30,000 tonsper day in Taigu.
?The construction of the GuyuanSponge City spans 23 square
kilometers, involving upgrading78 kilometers of urban rainwaterand sewers, transforming 32roads into sponge city streets, andconverting 45 old residential areasinto sponge city neighborhoods.
Capital Eco-Pro Group, in active response to national policies such as thePlan for WaterEcology Environment Protection in Key River Basins and theAction for Improvementof Environmental Infrastructure(2023-2025), engages in special actions including theconstruction of sponge cities, the treatment of black and stinky water, comprehensiveurban network management, and the ecology environment governance of villagesand towns. We also continue to strengthen the monitoring of pollutants and waterenvironment, effectively improving the quality of water ecology environment over thelong term.
Protect theWater EcologyEnvironment
Highlight Actions and Initiatives for Water Pollution Control and Ecological Monitoring?Drawing a sewer networkpollution map, with targeteddevelopment of emergencyresponse plans for abnormalinuent water quality at sewagetreatment plants
?
intelligent supervision platform,which harnesses cutting-edgetechnologies including UAVoblique photography, USV patrolsfor water monitoring, Web GIS,and 3D dynamic simulation,enabling the real-time visualizationand analysis of pollutantdispersion processes and theira?ected areas
?Developing the SENSIR
?
?Establishing a comprehensivemanagement mechanism forwater pollution that encompasses''monitoring, warning, tracing, andtreating'', which fully supportsstandardized construction ofdischarge outlets, monitorslong-term high-frequency waterpollution, and traces pollutionsources through the ''one section,one strategy'' approach
ShanxiProvince
HenanProvince
Ningxia HuiAutonomous Region
Inner MongoliaAutonomous Region
ShandongProvince?Operating water supply and sewage treatment services in Anyang,Nanyang, Pingdingshan, Luohe, Xinxiang, Zhumadian, and Jiyuan, witha cumulative daily water treatment capacity exceeding 400,000 tons.
Capital Eco-Pro Group2023 Environmental, Social and Governance Report
Environmental Performance Social Performance Governance Performance
Capital Eco-Pro Group has developed a comprehensive climate governance structure,actively identifying climate-related risks to its business activities and devising e?ectivecountermeasures to strengthen its resilience and preparedness for climate changechallenges.Capital Eco-Pro Group is committed to aligning with China’s ''carbon peak andcarbon neutrality'' goals, actively gaining expertise in climate management to bolsterits capabilities in this area. In 2023, Capital Eco-Pro Group established a climategovernance framework, defined roles for governance, management, and executionof climate change efforts, and ensured the implementation of climate managementresponsibilities to e?ectively advance climate change management practices.
Capital Eco-Pro Group is responding to global climate change challenges by bolstering its internalclimate risk management, mapping out low-carbon development strategies, and systematicallystrengthening its climate adaptation abilities. In addition, the Company actively participates in externalclimate governance, offers technical consulting support, and develops technological solutions forclimate change to contribute to mitigating global climate change.
Collaborate in Carbon Reduction AddressClimate Challenge
Manage ClimateChangeClimate Governance
Capital Eco-Pro Group is dedicated to recognizing and addressing climate-relatedphysical risks by implementing a comprehensive emergency management strategythat is both scientic and logical, e?ectively tackling a range of meteorological hazardsand significantly improving its ability to manage risks. The Company is also closelymonitoring the market and policy risks brought about by climate change, while firmlygrasping the industrial opportunities presented by the ''carbon peak and carbonneutrality'' goals.The Company has set up a dynamic data repository for water environment assetsand IoT, creating a comprehensive urban flooding model that combines sewersystems, waterways, and surface elements. By utilizing the Water EnvironmentAsset Management (WEAM) platform, we have integrated information on at-risk oodzones, weather patterns, rainfall intensity, and water accumulation to enable full-scalemonitoring of storm events in urban areas. This system empowers the Company torespond swiftly with precise forecasts, warnings, and strategic interventions based oncurrent conditions.
Climate Risk Management
Emergency Management Process
Information reporting
Information processingdiscussion and determinationAlert activation
Developmentof the accident
Alert cancellation
Response activation
Emergency disposal
Accident control
Response termination
Meet the alert conditions at this level
Escalation
Out of control
Brought under control
Meet the response conditions at this level
Accident occurrence
Emergency supportBrought under control
2827
Environmental PerformanceCapital Eco-Pro Group2023 Environmental, Social and Governance Report
Meteorological Disasters Emergency ResponseHigh winds, heavy rain, blizzards, and thunderstorms
Floods
Earthquakes
Geological disasters (such as debris ows, landslides, collapses, and subsidence)
?Shut down or isolate the source of danger to prevent the leakage of toxic, hazardous, and dangerous substances;?Suspend outdoor production activities as appropriate;?Organize personnel to inspect and deal with the drainage system to keep it smooth during rainstorms;?Promptly coordinate medical assistance to fully rescue the injured.
?Suspend operations of production facilities in the area at risk of ooding, and shut down or isolate sources of danger inadvance;?Timely check missing or trapped individuals in the disaster area, and develop rescue plans and routes;
?Strengthen monitoring of production facilities and pipelines submerged by oods and take appropriate control measures;
?Organize personnel as soon as possible to clean up the site after a flood disaster and prepare for the resumption ofproduction.
?Take self-protection measures to ensure personal safety;?Immediately shut down all production facilities;?Instantly evacuate and transfer all personnel except on duty to a safe location, and organize forces to isolate and guard thesite;?Take emergency measures for locations and facilities where secondary disasters may occur or have occurred, andstrengthen monitoring and control to prevent the spread of impact;?Swiftly rescue and treat the injured;?Control the source of the leak and implement sealing measures for toxic, hazardous, and dangerous substances leaked dueto an earthquake.
?Immediately order the cessation of production operations in the affected area and implement shutdown and protectionmeasures;?Initiate emergency response e?orts and prioritize the search and rescue of the injured in the aftermath of the disaster;?
Strengthen the monitoring of production facilities and pipeline infrastructure in the disaster area;
?
Quickly clean up the site, remove mud from roads, maintain tra?c ow, and ensure the delivery of rescue supplies.
The Company has conducted a greenhousegas examination for three consecutive years,consistently enhancing its management ofcarbon assets and furthering its e?orts in climatechange management. In 2023, Capital Eco-Pro Group embarked on crafting a carbon peakaction plan, streamlined its carbon emissionmanagement processes, dened the key areasof focus for achieving its ''carbon peak andcarbon neutrality'' goals, and created detailedcarbon emission reduction strategies. Theseinitiatives have established a robust frameworkfor the practical implementation of our ''dualcarbon'' goals.
Carbon EmissionReduction Management
by 2025
''15thFive-Year Plan''period
by 2030To increase the proportion ofrenewable energy consumption toover 85% and achieve significantcontrol over the Company’s energyconsumption and carbon dioxideemissions per unit of output valueby 2025
To continue to reduce energyconsumption and carbon dioxideemissions per unit of outputvalue during the ''15th Five-YearPlan'' period
To increase the proportion ofrenewable energy consumptionto over 88% by 2030 and achievecarbon peak by 2029
Capital Eco-Pro Group investedRMB35,768,300
in scientic research funding forclimate-related research topics,including pollution and carbonemission reduction, and low-carbon technology R&D.
In 2023
our total greenhouse gas emissionswere
2,798,000
tCO
e
and other indirect emissions (Scope 3) of2,300
tCO
e
including direct emissions (Scope 1) of1,918,200
tCO
eindirect emissions from purchasedenergy (Scope 2) of877,500
tCO
e
In 2023
To achieve an annual reductionin greenhouse gas emissions of1,214,700
tCO
e
through the waste-to-energy project,kitchen-waste anaerobic digestionand biomass co-generation project.
This data represents the greenhouse gas emission reductions generated by municipal waste-to-energy projects, including emission reductions from 21 waste-to-energypower generation projects, 4 kitchen-waste a naerobic digestion projects, and 2 biomass co-generation projects. The accounting standards are subject to the CM-072-V01Multiple Waste Treatment Methods (Version 1) and the CM-075-V01 Biomass Waste Co-Generation Projects (Version 1).
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Environmental Performance Social Performance Governance PerformanceCapital Eco-Pro Group2023 Environmental, Social and Governance Report
Greenhouse Gas Emissions Categorized by Business?Business
Capital Eco-ProGroup's Indicators
Unit202320222021Environmental sanitation,resource utilizationof domestic wasteincineration, and soilrestoration
Scope 110,000 tCO
e179.90133.70111.95Scope 210,000 tCO
e2.281.991.84Scope 310,000 tCO
e0.050.050.03Total GHG emissions10,000 tCO
e182.23135.74113.82Urban water service, waterenvironment, industrial
water
Scope 110,000 tCO
e11.8512.5921.41Scope 210,000 tCO
e85.07100.4197.21Scope 310,000 tCO
e0.170.140.10Total GHG emissions10,000 tCO
e97.09113.14118.72Atmospheric emissions
Scope 110,000 tCO
e0.020.009/Scope 210,000 tCO
e0.050.00/Scope 310,000 tCO
e0.010.007/Total GHG emissions10,000 tCO
e0.080.016/Headquarters o?ce
Scope 110,000 tCO
e0.050.050.04Scope 210,000 tCO
e0.350.490.40Scope 310,000 tCO
e0.0010.00040.0003Total GHG emissions10,000 tCO
e0.400.540.44
Total
Scope 110,000 tCO
e191.82146.35133.40Scope 210,000 tCO
e87.75102.8999.45Scope 310,000 tCO
e0.230.200.14Total GHG emissions10,000 tCO
e279.80249.44232.99GHG emissions intensity
10,000 tCO
e /RMB 100million revenue
1.311.131.05GHG emission reductions10,000 tCO
e121.47104.9046.49
Capital Eco-Pro Group continuously explores low-carbon resource recyclingtechnologies, promotes the utilization of renewable energy sources such as photovoltaicsand water source heat pumps, carries out carbon asset management, participates inthe construction of global voluntary emission reduction mechanisms, and coordinates topromote the Company’s green, low-carbon, and high-quality development.
In September 2023, the waste-to-energy project in Xinxiang City, Henan Province resolved a series of challenging issues relatedto project benchmarking. After approval by VERRA, it became the rst batch of registered waste-to-energy VCS projects onan international scale. With an annual waste treatment capacity of 672,800 tons, it realized 192 million kWh of clean powerconnected into the grid and 177,900 tons of external steam supply, equivalent to a total replacement of 72,300 tons of standardcoal. It is estimated to reduce carbon dioxide emissions by an average of 166,400 tons per year, generating carbon emissionreduction revenue of approximately several million yuan.
Registering the World’s First Batch of Waste-to-Energy VCS ProjectsCase
2.162
billion kWhof on-grid energy
provided
5.62
tCO
e per 10,000 kWh of emission reduction for net on-grid energy
replacing643,600tonsof standard coal
0.13
tCO
eof emission reduction per unit ofwaste
In 2023
(1)The accounting standards for environmental sanitation, resource utilization of domestic waste incineration, and soil restoration are subject to theISO 14064-1:2018 Specication and Guidance for Quantifying and Reporting of Greenhouse Gas EmissionsandRemovals at the Organization Level(applicable to enterprises),the CCER methodology CM-072-V01 ''Multiple Waste Treatment Methods'' (Version 1), the CM-075-V01 ''Biomass Waste Co-Generation Project'' (Version 1), the
Accounting Methods and Reporting Guidelines for Greenhouse Gas Emissions from Power Generation Enterprises in China (Trial), theAccounting Methods andReporting Guidelines for Greenhouse Gas Emissions from Other Industries in China (Trial), theTechnical Guidelines for the Compilation of Integrated Emission Listof Air Pollutants and Greenhouse Gases (Trial), and theTechnical Specication for Assessing Greenhouse Gas Emission Reductions from Waste-to-energy ProjectsBased on Projects (T/CAPID 004-2022). The accounting standards for urban water service, ecology environment, and atmospheric industrial projects are subject to theISO 14064-1:2018 Specication and Guidance for Quantifying and Reporting of Greenhouse Gas EmissionsandRemovals at the Organization Level (applicable toenterprises), theAccounting Methods and Reporting Guidelines for Greenhouse Gas Emissions from Other Industries in China (Trial), theGuidelines for the Compilationof Provincial Greenhouse Gas List (Trial), and theTechnical Guidelines for Carbon Accounting and Emission Reduction Pathways in Urban Water Service Systems.
The accounting standards for the headquarters o?ce are subject to theISO 14064-1:2018 Specication and Guidance for Quantifying and Reporting of GreenhouseGas EmissionsandRemovals at the Organization Level (applicable to enterprises) and the Guidelines for the Compilation of Provincial Greenhouse Gas List (Trial).
(2) Scope 1 of emissions from environmental sanitation, resource utilization of domestic waste incineration, and soil restoration includes direct emissions from waste
incineration of the waste-to-energy project, direct emissions from fossil fuel combustion of waste-to-energy projects, direct emissions from the combustion of fossil fuelsin canteens, emissions from the combustion of fossil fuels in mobile facilities, emissions from leachate treatment, emissions from anaerobic digestion tanks in kitchen-waste anaerobic treatment projects, emissions from landlls, direct emissions from the combustion of fossil fuels in biomass projects, and methane emissions frombiomass combustion in biomass projects. Scope 2 includes indirect carbon dioxide emissions resulting from the net purchase of electricity. Scope 3 covers indirectcarbon dioxide emissions arising from employee commuting and travel. Physical boundaries for accounting include 21 waste-to-energy projects, 4 kitchen-wasteanaerobic treatment projects, 29 integrated sweeping, collection, and transportation projects (including landlls), 2 biomass projects, and 2 soil restoration projects.
(3) Scope 1 of urban water service, water environment, industrial water, and atmospheric emissions includes direct emissions from fossil fuel combustion
and methane emissions from anaerobic processes in sewage treatment. Scope 2 includes indirect carbon dioxide emissions resulting from the netpurchase of electricity and heat. Scope 3 covers indirect carbon dioxide emissions arising from employee commuting and travel. Physical boundariesfor accounting include 610 urban water service projects, 10 ecology environment projects, and 69 atmospheric and industrial water treatment projects.
(4) Scope 1 of the headquarters o?ce emissions includes direct emissions from fossil fuel combustion. Scope 2 includes indirect carbon dioxide emissions resulting from
the net purchase of electricity and heat. Scope 3 covers indirect carbon dioxide emissions arising from employee commuting and travel. Physical boundaries for accountinginclude the headquarters of Capital Eco-Pro Group and 21 engineering management projects.
The accounting scope covers the resource utilization business of domestic waste incineration transferred to commercial operation by the end of 2023, including waste-to-energy projects, kitchen-waste anaerobic projects, and biomass co-generation projects.
3231
Environmental Performance Social Performance Governance PerformanceCapital Eco-Pro Group2023 Environmental, Social and Governance Report
Implement Distributed Photovoltaics for Excellent Green Energy Practices
Case
Hubei Province Shiyan Capital Dongfeng Company hasadvanced the construction of distributed photovoltaicprojects in the Industrial New Area Sewage Treatment Plantand Wujiagou Waterworks. In 2023, the installed capacityof the photovoltaic project in the Industrial New Areareached 249.48 kWh, with an annual power generation of157,613.33 kWh. Meanwhile, the installed capacity of thephotovoltaic system at Wujiagou Waterworks was 532.98kWh, generating 328,755.32 kWh of electricity annually,which has e?ectively enhanced the energy independenceof the waterworks and contributed to the carbon emissionreduction target.
Capital Eco-Pro Group actively responds to the national carbon peak and carbonneutrality goals, devotes itself to global climate governance actions, and providesgovernments and enterprises with comprehensive technical services in the fields ofenergy and low-carbon analysis, planning, and management, to promote regionalclimate change adaptation and mitigation.In 2023, Capital Eco-Pro Group actively participated in drafting theClean ProductionEvaluation Index System for the Municipal Solid Waste Incineration Industry (DB11/T2164-2023), the rst local standard for clean production in the municipal solid wasteincineration industry in China. The Company has also been involved in the ''carbon peakand carbon neutrality'' initiative in Hekou District, Dongying City, and the low-carbon pilotproject in Mentougou District, Beijing, o?ering consultancy and technical assistance topromote the region’s transition towards sustainable, low-carbon growth.
Participatein ClimateGovernance
In 2023, Capital Eco-Pro Group developed theNingxia Helan Mountain East Ridge Vineyard Plantation Carbon Sink AppraisalSystem(version number: V01), which aligns with both the general methods for measuring forestry carbon sink internationallyand the practical conditions of the Ningxia Helan Mountain East Ridge Vineyard. The appraisal system is characterized by itsscientic, rational, and operational nature, contributing to the long-term development of carbon sink in the vineyard.
Preliminarily Develop the Ningxia Helan Mountain East Ridge Vineyard Plantation Carbon SinkAppraisal System
Case
In 2023, Capital Eco-Pro Group deeply analysed the impact of climate change on urban environments, infrastructure, andresidents’ lives. Leveraging innovative technologies in big data analysis, intelligent sensing, and renewable energy, the Companyproposed a climate adaptation urban pilot scheme for Mentougou. The scheme encompasses specic plans and measures forinfrastructure upgrades, promotion of green transport, urban greening, and water resource management. It provides informationand technical support for the implementation and promotion of the climate adaptation urban pilot scheme in the future,contributing to the local ''carbon peak and carbon neutrality'' goals.
Design a Climate Adaptation Urban Pilot Program for Mentougou and Contributing to Local''Carbon Peak and Carbon Neutrality'' GoalsCase
The ''agship projects'' have implemented a comprehensive evaluation framework that standardizes and renes criteria across di?erentsectors, focusing on operational e?ciency, lean management, and brand image. This approach encourages initiatives that optimizeenergy and water resource management and cut down on the use of chemicals and other resources, ultimately enhancing overalloperational capabilities.The seven agship projects include
Capital Eco-Pro Group continuously focuses on the e?cient recycling of energy resources and selects7 ''agship projects'' that meet the standards of green and high-quality development from 24 businesssubtypes and 44 declaration projects.
Improve Quality and E?ciency Improvement andPromote Leaner Resource Management
the Water Supply Service Flagship Project - Water Supply Project of Xuzhou Capital Water Co., Ltd.
the Sewage Treatment Flagship Project - Hefei Shiwuli River SewageTreatment Project in Anhui Province
the Municipal Air Service Flagship Project - Huainan AtmosphericEnvironment Monitoring and Comprehensive Management Optimizationand Upgrade Service Project in Anhui Province
the Municipal Solid Waste Incineration Flagship Project - Huizhou Waste-to-Energy Project in Guangdong Province
the Recycled Water Service Flagship Project - Dalian Hengji RecycledWater Project in Liaoning Province
the Environmental Sanitation Flagship Project - Dongcheng RoadIntensive Operation Project in Beijing
the Water Environment Flagship Project - Huai’an ComprehensiveTreatment Project Targeted on Black and Stinky Water in Jiangsu Province.
3433
Environmental Performance Social Performance Governance PerformanceCapital Eco-Pro Group2023 Environmental, Social and Governance Report
Capital Eco-Pro Group is committed to integrating the concept of energy conservationinto all aspects of its production and operations. We strive to optimize our energystructure, innovate our technical processes, carry out energy-saving renovations, andcontinuously improve our energy efficiency. The Company has established specialenergy-saving assessment incentives during its operations, taking energy consumptionas a key performance indicator to promote the implementation of management energy-saving measures and technological optimizations.
Optimize EnergyManagement
ManagementEnergyConservation
TechnicalEnergyConservation
Integrated urban water service and waterenvironment service
?Pinpoint energy consumption targets for individual projects with greater precision byemploying electrical energy efficiency assessments to set clear objectives for energyconservation?Implement zonal measurement and control to monitor, analyze, evaluate, and optimizethe operation of key energy-consuming units in the water treatment plant
?
Carry out analytical correction, stable-state scheduling, and service support for theproject to rene energy consumption management through dynamic control and targetedenergy-saving initiatives
?Provide headquarters-level, regional-level, and plant-level technicians with decisionsupport for diagnostic analysis and optimization of the entire process through ourself-developed sewage treatment plant process analysis tool, which was applied andpromoted in 12 wastewater treatment plants in 2023?Promote precision de-sanding equipment in one sewage treatment plant, which has reduced theenergy consumption of aeration supply and equipment wear along the process?Carry out energy-saving and carbon-reduction retrots of equipment such as blowersand induced draft fans, promoted advanced technologies such as precise aeration andinformation-based energy e?ciency control, achieving a 20% to 40% improvement inelectrical energy e?ciency across each system, with an annual reduction in electricityconsumption exceeding ten thousand kWh?Set energy e?ciency targets?Develop a special income increase and expenditure reduction plan for the municipalwaste-to-energy project, establish a dedicated team, and systematically improve unite?ciency?Strengthen equipment maintenance and debugging, conduct timely operational dataanalysis to ensure optimal equipment operation adjustments, and reduce electricityconsumption from ine?ective operation?Organize operational training to enhance operational skills and control the proper amountof waste in the furnace to improve the e?ciency of waste combustion
?Reform ue gas spiral ash conveyors, replace water-cooled spirals with water-cooled ashhoppers, and implement technical reformation of magnetic levitation fans at the leachatestation to enhance the e?ciency of operational energy consumption?Formulate theLarge Equipment Power Medium Startup-Shutdown Directoryand setdown conditions for shutdown and startup, reducing idle running time and unnecessaryenergy waste.
?Select equipment that boasts superior e?ciency and aligns more closely with the specicoperational needs of the site, tailor the operational process by incorporating frequencyconverters and other technologies to match customers' load demands and adapt tothe distinct seasonal conditions of both winter and summer, ultimately boosting energye?ciency.
?Develop an industrial park energy control system to enhance management e?ciency andfacilitate energy structure adjustment.
List of IndicatorsSpecic IndicatorUnit202320222021
Totalconsumptionof direct and/orindirect energycategorized bytype (such aselectricity, gas,or fuel) in 1,000kWh
Energypurchase andconsumption
Domestic waste (for fuel)T6,102,7504,668,5683,365,875Total consumption of netpurchased electricity
100 millionkWh
15.2918.0816.13
Gasoline consumptionL1,507,6691,356,939975,601Diesel fuel consumptionL9,744,00710,102,0186,804,581Natural gas consumptionm
2,298,1921,634,0061,246,321LPG consumptionT122164102Purchased steamconsumption
GJ51,23949,66194,888Biomass fuel (for fuel)T530,827488,606/Processing,conversion,and recycling
Supplied clean on-gridenergy
100 million
kWh
21.6218.50 11.67
Energyconsumption
Total energy consumption10, 000 tce174.69144.4998.29Energy consumption intensity
10, 000tce/ RMB100 millionrevenue
0.820.650.44
In 2023, TAGAL's Water System Service Contracted Operation Project initiated a targeted campaign for energy conservationand consumption reduction. This initiative involved the enhancement of water pump equipment to improve e?ciency and bettersuit the operational parameters of the site. Additionally, the project implemented frequency converters and other technologicalmeasures to optimize operations in response to varying customer loads and seasonal conditions. As a result, the projectachieved an annual electricity saving of 3,296,803 kWh.
Process Optimization for Energy Saving and Emission ReductionCase
In September 2023, the Qianjiang Incineration Project in Hubei Provincecompleted the technical upgrade of magnetic levitation fans at the leachatestation. The upgrade involved replacing Roots blowers in the biochemicalpond with magnetic levitation fans, resulting in an annual electricity savingsof up to 60,000 kWh. Additionally, the noise in the fan room was reducedby nearly 20%, achieving coordinated development of energy conservation,emission reduction, and environmental improvement.
Upgrade Magnetic Levitation Fans at the Leachate StationCase
Comprehensive management services ofsolid waste
Atmospheric environment and industrialservices
ManagementEnergyConservation
ManagementEnergyConservation
TechnicalEnergyConservation
TechnicalEnergyConservation
3635
Environmental Performance Social Performance Governance PerformanceCapital Eco-Pro Group2023 Environmental, Social and Governance Report
Capital Eco-Pro Group strictly adheres to theWater Law of the People's Republic of China,theRegulation on the Administration of the License for Water Drawingandthe Levy of WaterResource Fees, the Regulation on Urban Water Supply of the People's Republic of China,
and other relevant laws and regulations. Internally, the Company has formulated managementdocuments such as theOperational Guidelines for Urban Water Service Projects,theMaintenanceManagement Measures for Water Supply System, theGuidelines for Emergency Repairs ofPipelines, the Guidelines for Leak Detection of Pipelines,and theManual for Self-Use WaterManagement in Waterworksto strengthen comprehensive water-saving management throughoutthe process, including water intake, self-used water, and network operation and maintenance.The Company considers factors such as water supply safety and ecological environmentduring project site selection, with a preference for surface water sources to minimize the impactof business operations on the ecological environment. Throughout 2023, the Company didnot have to address any matters concerning the procurement of appropriate water sources.
Capital Eco-Pro Group actively promotes the analysis and control of water consumption for itsprojects and links annual water consumption assessments to performance metrics, therebyreducing the self-use rate. Additionally, we further enhance our water use e?ciency by controllingwater loss rates and utilizing recycled water resources.
Enhance WaterResourceManagement
Achieving a self-usewater rate of
3.03%
TargetResult
Initiatives to Reduce Self-Use Water Rate in 2023Institutional development
?Compile a corporate edition of the Manual for Self-Use Water Management in Waterworks to clarify key points of controlfor production water, landscaping water, and o?ce water and provide technical support for projects to optimize productionprocesses and save self-used water at waterworks.Management?Promote the reuse of production wastewater, including rinse water and thickening tank supernatant, for recycling inproduction processes;?Accurately measure self-used water and regularly calibrate inlet, outlet and recycled water ow meters to ensure precisemeasurement;?Strengthen the management of self-used water in waterworks to eliminate water loss from faucets, self-used water pipelines,and tank structures.
To reduce the self-use water rate, Henan Province Xinxiang Capital conducteda special action at Gaocun Village Waterworks, Mengying Waterworks, and XinDistrict Waterworks. Gaocun Village Waterworks and Mengying Waterworksunderwent pipe replacement for their internal self-used water systems andupgraded their metering equipment to diminish water loss from the waterdistribution system. Meanwhile, the water from the cleaning pool and mudsuction machine were reused to improve the water source recycling rate. In2023, Xinxiang Capital achieved a self-used water rate of 1.57%, amountingto a 3.07 million tons reduction in self-used water compared to 2021. Thisrepresented a decrease of 3.12% in the self-used water rate, advancing thesustainable and e?cient utilization of water resources.
Reduce the Self-Use Rate in Waterworks to Enhance Water Resource Management E?ciencyCase
To e?ectively reduce the Non-Revenue Water (NRW), Capital Eco-Pro Group has set a target tomanage the NRW.The Target to ReduceNon-revenue Water(NRW)
Further, reduce the NRW of the areas where the water loss rate of urban water distribution system hasachieved level I of the standard for water loss control and assessment by 2025; Bring the NRW of theareas failing to meet the level I standard within the standard.
Evaluation?Issue aTarget Responsibility Document for reducing the NRW to all projects involving the water distribution system, clearlydening each project’s annual NRW target and implementing special evaluations.
Initiatives to Reduce the NRW in 2023
Institutional development?Establish a classied and graded management mechanism for the NRW, focus on projects with higher NRW, evaluate thecurrent NRW management status, and assist in developing specialized plans to address the NRW;?Continuously rene the Company' s NRW management system by releasing updated institutional documents such as the
Guidelines for Meter Reading Management,theGuidelines for Inspection Managementandthe Guidelines for Marketingand Customer Service Business Process of the Water Supply Project,with each city and project company to establish andimprove their NRW management systems based on their specic management realities.
Management
?Establish an expert team for controlling the NRW to assess, manage, and support water loss detection and control acrosseach project;?Guide the establishment of a special group for NRW management and control, and strengthen water loss management;
?Consolidate business foundation and standardized management of a project relying on the construction of smart waterservice and promote digital management and control of the overall NRW.?
Organize water auditing for all water distribution projects;?Improve the water distribution system operation and maintenance, enhance the construction of district metering, andincrease the e?ciency of water loss detection.?Upgrade the water distribution system in old residential communities.
In 2023
with a water reduction of
2.49
million tonsThe annual target for self-use water rate is set at
3.26%
with a water reduction target of
,
tons
the Company achievedan actual NRW rate of
13.14%
representing a year-on-year decrease of
0.76pp
This marks a continuousdecline in NRW for
consecutive years
Total water withdrawl of urban waterservices
1.43
billion tons
Long-termtarget
3837
Environmental Performance Social Performance Governance PerformanceCapital Eco-Pro Group2023 Environmental, Social and Governance Report
Initiatives to Improve Water Usage E?ciency in the Solid Waste Sector
Within the solid waste sector, the Company places signicant importance to the e?ective utilization of water resources. We meticulouslyselect water sources, recycle domestic sewage and production wastewater, and maintain strict control over the operational proceduresand infrastructure. These measures collectively boost the project’s water usage e?ciency.
Institutional development?Implement a comprehensive set of policies including the Water Conservation Management Policy, the Policyfor Routine Inspection and Repair of Pipelines and Equipment, the Job Responsibilities for Water ConservationManagement Roles, the Water Conservation Target Responsibility and Evaluation System, and the Incentiveand Disciplinary System for Water Conservation Management Positions, and assign specialized staff for waterconservation duties and dene their specic roles and responsibilities.
Operation management
?Set an annual water replenishment rate target for waste-to-energy projects involving the incineration of municipal solid waste,conduct water-saving performance assessments, and establish auditing and incentive mechanisms;?Strengthen the management of water intake and usage appliances, establish original ledgers, and develop strict water-saving plans;?Enhance the measurement, monitoring, and control of water quantity and quality across each system, conduct water balancetesting, and analyze the potential for water conservation;?
Conduct regular inspections and promptly check for internal leaks in the pipelines and valves of various steam-watersystems, coordinate with technical departments and maintenance teams to address internal leaks timely;
?
Adjust operational parameters to optimally allocate and reduce the cooling water in condenser circulation, thereby decreasingthe evaporation of circulating water.
Incentives?O?er nancial assistance for technological upgrades and allocate resources to address the management challengesassociated with the NRW of each project company.
Capacity building?
Implement focused training programs and hands-on drills, culminating in 74 hours of training on NRW management at thecorporate level, engaging a total of 154 trainees.Implement focused training programs and hands-on drills, culminating in 74hours of training on NRW management at the corporate level, engaging a total of 154 trainees.
Water source management
?Use municipal reclaimed water from local sewage treatment plants as production water sources in some projects;?Recycle the treated leachate that meets standards into the circulating water system;?Recycle domestic sewage for plant greening.
Implement a Performance Incentive Competition to Promote the Achievement ofWater-saving GoalsCaseThe waste-to-energy project in Ruijin, Jiangxi Provincehas successfully boosted the proactive approach to waterconservation in production by introducing a competition basedon water-saving performance metrics, coupled with monthlyevaluations and a bonus system, and this initiative has led to asignicant enhancement in the project’s overall water e?ciency. In2023, the Ruijin waste-to-energy project successfully exceeded itswater-saving objective by conserving 86,100 tons of water againstthe projected consumption.
Capital Eco-Pro Group adheres strictly to the principle of closed-loop management ofindicators and carries out chemical management focusing on ''price'', ''quality'', and''quantity''. The Company has adopted a standardized approach to managing chemicals,focusing on management-based and technology-based strategies to reduce chemicalusage and improve the e?ciency of resource utilization.In 2023, by launching a targeted campaign to optimize chemical usage, the Companysuccessfully reduced both the per-unit consumption and the overall expenditure onchemicals at seven of its waterworks, amounting to cost savings of RMB 8 million.
Reduce ChemicalConsumption
''Price''
Achieve the most optimal prices for chemicals by emphasizing price control for centralized procurement
''Quality''
Ensure chemical e?ectiveness by emphasizing quality and e?ciency control through unannounced inspectionsand incoming quality control
The Chemical Control Logic of ''Price, Quality, and Quantity''
''Quantity''
Achieve a signicant reduction in chemical consumption by emphasizing detailed control measures, such asdynamic management, initiatives to uncover potential savings, and enhancing capabilities through businesstraining
Consumption of Chemicals and Raw MaterialsBusinessIndicatorsUnit2023Urban water service and waterenvironment business
Consumption of carbonsources
T201,357.53Consumption of phosphorusremoval agents
T188,657.71
Resource utilization of domesticwaste incineration
Lime consumptionT49,975.02Activated carbonconsumption
T2,507.72Urea consumptionT6,722.37Consumption of chelatingagents
T3,626.27
4039
Environmental Performance Social Performance Governance PerformanceCapital Eco-Pro Group2023 Environmental, Social and Governance Report
The Company strictly adheres to national and local laws and regulations onenvironmental management and ecological protection, and continuously enhances theconstruction of its environmental management system. The Company has establisheda standardized environmental management mechanism, with each project companysetting up a dedicated Safety and Environmental Protection Department to promote theimplementation of environmental protection and emergency management.
Capital Eco-Pro Group adheres to the concept of green development, persistently refines itsenvironmental management framework, proactively advances sustainable operational practices,rigorously monitors and reduces pollutant emissions, and engages in the preservation ofbiodiversity. Through these green initiatives, the Company steers towards a path of high-quality andenvironmentally conscious growth.
Green Operations Boost SustainableDevelopment
ImproveEnvironmentalManagementSystem
Internalpolicy
?Wastewater Discharge ManagementPolicy
?Sludge Management Regulations
The Company conducts regular environmental risk management activities. We conduct annual internal audits to pinpoint and evaluateenvironmental risk factors within our operations, and we maintain a consistent watch on the remediation of potential hazards toguarantee that environmental risks are e?ciently handled and kept under control. During the project acquisition phase, the Companycomprehensively diagnoses and identifies potential operational risks through pre-due diligence communications, in-due diligenceinterviews, checklist reviews, and on-site research, including assessing the target company’s regional economic situation, policy andregulations, and potential business risks, as well as gaining an in-depth understanding of environmental risks, to provide informationsupport for project decision-making.
In 2023, we successfully passed the annual external surveillance audit for the
ISO 14001environmental management system.
In 2023, Capital Eco-Pro Group developed the Dosing Middle Platform (DMP) and demonstrated the application at the DongbaCapital Recycled Water Plant. The DMP helped to achieve the automation of chemical dosing and operational control, reducingthe need for manual and frequent adjustments by operational sta?, as well as minimizing the impact of operational lag. Thisprecision in chemical usage helps to decrease chemical consumption.
Demonstrating Application of the Dosing Middle Platform (DMP)Case
The DMP Interface Screenshot
In 2023, Capital Eco-Pro Group implemented a range of measures including technological upgrades, management innovation,and the development of platforms to enhance precision in chemical management. These e?orts led to a decrease in chemicalusage and an increase in its e?ciency.?Inner Mongolia Hohhot Capital implemented major technological upgrades to address process deciencies within the plant,renovated high-energy equipment, including fans and pumps, and established standardized dosing rooms, reducing electricityand chemical costs by RMB 5 million compared to the previous year.?Beijing Longqing Capital saved RMB 1.2 million in electricity and chemicals compared to the previous year throughmanagement innovations by setting up an integrated dispatching center, instituting hierarchical control at the plant level,exercising rened operational management, and utilizing a smart operation platform for data analysis and intelligent earlywarning.?Shanxi Taiyuan Capital and Anhui Hefei Shiwuli River Capital optimized and upgraded their chemical dosing systems, carriedout energy-saving technical renovations, and signicantly improved the e?ciency of their processes. As a result, they savedRMB 3.6 million in chemical costs and RMB 1.1 million in electricity costs, respectively, compared to the previous year.
Take Multiple Measures to Reduce Consumption and Increase E?ciencyCase
Capital Eco-Pro Group has further reduced chemical consumption by implementing technicalupgrades to enhance the automation and intelligence of the chemical dosing system. In 2023,the Company developed and launched a comprehensive computational tool for evaluating theperformance of chemicals in sewage treatment plants. This tool allows for detailed analysis,assessment, and dosage calculation for all categories of chemicals utilized, facilitatingmeticulous control over chemical applications in sewage treatment operations. By the end of2023, the Company had added standardized chemical dosing rooms in 28 sewage treatmentplants, achieving precise statistics, measurement, and adjustment of chemical dosing, therebyenhancing precise management in production and operation.
By the end of 2023, the Companyhad added standardized chemicaldosing rooms in
sewage treatment plants
4241
Environmental Performance Social Performance Governance PerformanceCapital Eco-Pro Group2023 Environmental, Social and Governance Report
The Company's waste-to-energy project treats the leachate generated within the plantarea during the operational process. The treated water is then recycled in the limeslurry production and y ash solidication processes, e?ectively reducing wastewateremissions, and contributing to the realization of the zero-discharge goal.
Capital Eco-Pro Group comprehensively manages hazardous waste, sludge, and othersolid wastes. The Company integrates data on hazardous waste and sludge into itssewage treatment system for real-time tracking, champions the use of sludge dryingtechnology, and supports the reduction of sludge production as part of its integratedurban water service and water environment service. The Company promotes theharmless and resource-oriented processing of bottom ash from waste-to-energyprojects, with the ash then repurposed into bricks or other sustainable constructionmaterials, supporting the development of a waste-free city.
WastewaterManagement
Solid WasteManagement
In 2023, the Xihua County waste-to-energy project advanced the treatment of circulating water. By adding concentrated sulfuricacid to the circulating water, the concentration ratio of the water was increased from 3.0 to 4.0, e?ectively reducing the alkalinityof the circulating water and thus reducing the probability of equipment scaling. This measure protected the equipment whileenhancing water use e?ciency. The project reduced the daily make-up water for the circulating water system by 365 tons anddecreased the daily discharge of wastewater by 80 tons.
Implement Circulating Water Treatment to Enhance Water Usage E?ciencyCase
IndicatorsUnit202320222021COD reduction10,000T55.2650.6847.27BOD reduction10,000T19.3717.5617.45Total phosphorus reduction10,000T0.960.950.88Total nitrogen reduction10,000T6.516.045.34
?The Company collects and stores hazardous waste from all stages in line with its safetyprotocols, and then authorizes third-party entities specializing in hazardous wastemanagement to regularly transport and dispose of such waste, with proper recordsmaintained.IndicatorsUnit202320222021Nitrogen oxide (NOx)T2,8504,9611,561Sulfur oxide (SOx)T596437217Particulate matter (PM)T1007985
The Company monitors emissions in strict accordance with the requirements of thepollution discharge permit, ensuring that the emissions are stably compliant withstandards. The Company has achieved 100% coverage of online risk monitoring forwater quality in its sewage treatment business. Annual self-monitoring plans are madefor waste-to-energy projects to monitor plants and the surrounding environment. Theyalso commission qualied third parties to regularly monitor groundwater, surface water,soil, and fugitive emissions such as noise, as well as organized emissions includingue gas, y ash, bottom ash, and wastewater in and around plants. Additionally, duringthe project acquisition phase, we collect and organize business licenses of targetcompanies, conduct thorough due diligence on waste disposal and pollution controlschemes throughout the production process, reveal potential project risks and proposecountermeasures.The Company rigorously manages waste gas emissions. The waste gas generatedduring the sewage treatment process is collected through a system and subjectedto biological or chemical deodorization treatment before being discharged to meetstandards. Additionally, all waste-to-energy projects are equipped with online ue gasmonitoring systems prior to operation to meet the requirements of air pollutant emissionlimits.
Environmental Monitoring
Waste Gas Management
In 2023, multiple measures were taken in the Xinjiang Fangcao Lake Biomass-red Power Plant project to reduce waste gasemissions, contributing to local air pollution prevention and control. The project underwent an upgrade to its desulfurizationfacilities, signicantly reducing sulfur dioxide emissions. Additionally, it constructed a fully enclosed dry material shed, e?ectivelyreducing the fugitive emissions of dust particles. The project initiated a special dust control campaign within the plant area,adding 6,000 square meters of green spaces, with an annual reduction of 6.82 tons of particulate matter emissions. In addition,the project replaced diesel-powered loaders with new energy loaders within the plant area, e?ectively reducing the emission oftailpipe pollutants, including particulate matter, nitrogen oxides, and sulfur dioxide, by 1.13 tons annually.
Upgrade and Transform Fangcao Lake Biomass-red Power Plant to Contribute to Air PollutionPrevention and ControlCase
Capital Eco-Pro Group, adhering to the principles of reduction, harmlessness, andresource utilization, promotes environmental pollution control and waste emissionmanagement, and regularly monitors the main pollutants, wastewater, waste gas, andnoise generated from its typical businesses. We also undertake actions such as wasterecycling, reclaimed water reuse, and biological treatment of waste gas to e?ectivelyimprove the ecological environment performance of our projects.schemes throughoutthe production process, reveal potential project risks and propose countermeasures.
Reduce PollutantEmissions
?We strategically place recycling bins throughout the courtyard and buildings of the industrialpark, and designate sorters at the central waste transfer station within the park to oversee thee?ective implementation of waste segregation;?We engage with third-party companies authorized for waste management to handle thecollection and disposal of food waste and other refuse and maintain comprehensive wastedisposal records to ensure meticulous and scientic waste management practices.
Hazardous
WasteManagement
General
WasteManagement
4443
Environmental Performance Social Performance Governance PerformanceCapital Eco-Pro Group2023 Environmental, Social and Governance Report
Capital Eco-Pro Group adheres to the ecological red line, reducing the ecologicalimpact of project construction and business operations through a hierarchy of mitigationmeasures including ''avoidance, mitigation, restoration, and compensation.''Before the development and construction of project sites, the Company conductscomprehensive environmental impact assessments to identify and evaluate theproject’s impact on the environment and ecology and proposes strategies andmeasures to reduce ecological impact and enhance environmental protection. Inaddition, the Company has delved into the topic of ''Evaluation of Water Ecology HealthBenets,''creating a comprehensive water ecology health evaluation system to assessthe water ecology health and the e?ectiveness of ecosystem restoration in lakes andrivers at various stages, thereby contributing to the evolution of water quality monitoringtowards a more ecological focus.
Biodiversity Protection
Water Ecology Health Assessment System and Evaluation Indicators
River
?The control compliance rate of cross-sectionassessment?The target achievement rate of water environmentthrough long-term assessment?The compliance rate of water quality monitoringindicators?Greening maintenance qualification rate?Aquatic plant degradation rate
Attach great importance to water quality and ecological health of rivers and lakesEmphasize the compliance assessment of cross-sections with water quality standards
?Ecological flow satisfaction level?Longitudinal connectivity index of rivers?Sediment contamination status?Benthic fauna integrity?Completion rate of public reportingrecord processing
Others
?Media promotion levelKey management indicators such as publicity and inspection
?Completion rate of public reportingrecord processing
Plant
Integrate risk management and pollution treatment e?orts into a unied framework centering onthe core logic to achieve drainage reductions
?The compliance rate oftreated water?Operating load rate
?Sludge disposal rate?The utilization rate ofrecycled water
?COD reduction rate?TP reduction rate
?NH
-N reductionrate?TN reduction rate
Network
?Patrol inspection coveragerate?Patrol inspection cycle?Function inspection rate?Structure inspection rate
Ensure comprehensive management and control throughout the routine operational andmaintenance procedures of the drainage sewer networkEmphasize the e?ciency-based evaluation of the drainage sewer network
?Sewer maintenance rate?Mixed misconnectionelimination rate?Sewer network renewal rate?Centralized sewage collectionrate
?Incoming BODconcentration qualificationrate?Centralized sewagedisposal rate
Source
?Average overflow frequency
Focus on assessing the control of sewage discharge from pollution sourcesConcentrate on managing overow outlets and individual drainage points
?
Drainage permit coveragerate
?The rate of increase in thenumber of drainage unitsIndicatorsEnvironmentalIndicator
Environmental IndicatorUnit202320222021Total hazardouswaste
Hazardous waste from production and
operation
T126,3978,11246,372
Hazardous kg4331,800300Total non-hazardouswaste
Non-hazardous waste from production
and operation
T556,554423,931117,829
O?ce wasteT798808809
Capital Eco-Pro Group manages a centralized sludge processing and disposal facility that spans 2,000 square meters. Thisfacility handles 200 tons of sludge daily, with an 80% moisture content, ensuring the reliable functioning of the city's sewagetreatment systems. The project employs the ''low temperature drying + power plant co-disposal'' process, dehydrating sludge toa moisture content of 30% before transporting it to a power plant for co-incineration, achieving the reduction, stabilization, andharmlessness of sludge.
Promote Sludge Drying and Co-incineration for the Resourceful Utilization of SludgeCase
?We carry out sludge storage, transportation, and disposal for all projects involving thegeneration of surplus sludge from sewage treatment and sludge from pipeline and riverbeddredging activities according to our Sludge Management Regulations.CompliantSludgeManagement
4645
Environmental Performance Social Performance Governance PerformanceCapital Eco-Pro Group2023 Environmental, Social and Governance Report
Capital Eco-Pro Group applied artificial wetland technologyin the Pingchang River Water Storage and Diversion EPC+OProject in Yantai, Shandong Province, to improve the riverecology environment. With the project's conclusion, thewetland will enhance the water quality by raising the COD andammonia nitrogen levels from Surface Water Class IV to ClassIII. Furthermore, the implementation of strategies such as thereuse of water for replenishment and the retention of river waterwill facilitate the ecological revitalization and improvement of thePingchang River. The river will be characterized by sparklingwater, verdant shoreline, and swimming fish in the shallowwater, becoming a ''Mother River'' ecological corridor pilotscheme that aids in the conservation of aquatic species.
Construct Articial Wetlands and River Ecology CorridorsCase
Measures to Minimize Ecological Disturbance in Water Environment Ecology Restoration Projects
Develop design plans that minimize ecological disturbance
Construct in a way that minimizes ecological disruption
?Engage in extensive communication and consultation with local experts and community residents to understand thecharacteristics of the local ecology environment and the status of biodiversity;?Formulate a design plan that minimizes ecological disruption, including optimizing the project layout, selecting themost suitable construction materials, and choosing vegetation that is appropriate for the local environment.
?Control night-time noise to minimize the impact on the surrounding ecology environment;?Direct on-site searchlight illumination towards the central construction area at night to minimize the impact on birdand animal activities;?Promptly restore the ecology environment in the construction area upon project completion to minimize the adversee?ects of ecological disruption on animals.
In 2023, Capital Eco-Pro Group organized a team of experts to create theXinjiang Shihezi Comprehensive EnvironmentalManagement Three-Year Initiative (2023-2025),aiming to enhance the water ecological environment of Mushroom Lake viaa thorough ecological restoration of Mushroom Lake Reservoir and by strengthening the operation and control measures atsewage treatment plants. Within the reporting period, the Shihezi Sewage Treatment Plant, which is the primary source ofwater for enhancing the quality of Mushroom Lake, consistently surpassed the Class A e?uent criteria during regular monthlyand quarterly inspections by government oversight agencies, creating an improved ecological habitat for migratory birds. Therehas been a signicant increase in wild birds at Mushroom Lake, with over 129 species such as swans, wild geese, egrets, andwaterfowl.
Specialize Water Ecology Environment Management for Bird Habitat ImprovementCase
Capital Eco-Pro Group is committed to practicing green o?ce principles by thoroughlyundertaking energy-saving modifications. These efforts aim to decrease energy andresource use, along with waste outputs, propelling the Company towards a moreenvironment-friendly and low-carbon operational model.Green Our O?ce
?Perform routine checks and upkeep to maintain the operational energy e?ciency of equipment;?
Optimize the temperature settings of the air conditioning system to reduce the operating powerof cooling and heating equipment;
?Implement an intelligent control system to continuously track system performance and ne-tuneoperational settings to maximize e?ciency and minimize energy use;?
Increase the duration of natural ventilation and reduce the operating hours of mechanicalventilation equipment;?
Minimize the idle time of o?ce equipment and make sure to power down all o?ce appliances assoon as the workday ends;?Decrease elevator use on lower oors to reduce electricity consumption;?Monitor outdoor and indoor temperatures and adjust the heating water temperature reasonablybased on actual needs.?Use water-saving faucets and sanitary ware;?Adjust the operational parameters of water-using equipment dynamically based on waterconsumption needs and characteristics to achieve scientic and rational water reduction.
?
Encourage the use of electronic devices for viewing and approving work documents?
For paper documents, opt for a double-sided printing mode.
?
Encourage employees to adopt green travel modes and promote the purchase of green electric
vehicles and hybrid vehicles;?
Prioritize the procurement of electric vehicles for Company use;
?
Provide designated charging stations for new energy vehicles in parking areas.Ecological Habitat of Migratory Birds at Mushroom Lake Reservoir
The Company rigorously confines its operational expansion to areas outside of water sourceecology reserves and environmentally sensitive zones, thereby reducing potential ecologicalimpact. Simultaneously, we initiate water and soil remediation projects, employing naturalrestoration techniques to rehabilitate soil function and restore aquatic ecology balance.Additionally, we enhance the construction of ecological corridors to foster the recovery of localbiodiversity.
In 2023, Capital Eco-Pro Groupreclaimed approximately850,700square metersof mined land.
Waterconservation
Energyconservation
Paperless o?ce
Low-carbontravel
4847
Environmental Performance Social Performance Governance PerformanceCapital Eco-Pro Group2023 Environmental, Social and Governance Report
SocialPerformanceCapital Eco-Pro Group embraces social welfare in a proactive way. The Companyis dedicated to prioritizing industrial development and environmental technologicalinnovation, and transfer social responsibilities into corporate spirit. We develop multipleinitiatives in employee management, industry exchange and social welfare, in a bid tohonor our commitments in corporate social mission and responsibilities.S
First-Rate Services, EnhancingQuality ManagementPeople-Oriented, EmpoweringEmployee DevelopmentRobust Development,Consolidating Safety ManagementHand in Hand, BoostingIndustry Development
Adherence to Original Aspiration,Contributing to Community Welfare
First-Rate Services, EnhancingQuality Management
Improve ProjectManagement
Project Risk Control
With the mission of delivering high-quality service, Capital Eco-Pro Group rigorously controls projectquality in construction and operation, and consistently upgrades customer service and technologicalinnovation management, thereby providing reliable, safe and efficient social public services whilingcreating better user experiences.
In full compliance with theLaw of the People's Republic of China on ProductQuality,Capital Eco-Pro Group optimized seven standardized manuals including the
Management Measures for Construction Technology Qualityand theManagementMeasures for Project Quality Inspectionduring the reporting period, thus providinginstitutional guarantees for product quality improvement.Capital Eco-Pro Group has keen insight into key elements of project management,adheres to a customer-centered strategy, and constantly bolsters the core deliverablesof construction project by strengthening risk control, refine operation, and expertiseempowerment, with the aim to improve operation-friendly solutions and create astandard system across the project cycle.
Capital Eco-Pro Group routinely performs on-site project surveys as required by riskcontrol systems and promptly recties risks. In 2023, we conducted special inspectionson high-risk projects, covering 17 front-line projects in Anhui, Sichuan, Jiangsu andHubei provinces, this proactive approach has bolstered project risk resilience.Key Elements of Project Management
Based on a robust project risk management system, Capital Eco-Pro Group hasestablished the Investment Committee consisting of senior management and businessexperts to enhance the Company's project risk identification capabilities and bolsterquality control at key aspects such as project investment standards, evaluation reports,and implementation progress monitoring.Overview of Project Risk Control Systems of Capital Eco-Pro GroupThe General Outlines for Foreign Investment Management of Capital Eco-Pro Group,theManagementMeasures for Investment Expansion of Capital Eco-Pro Group,theWork Rules of Investment Committeeof Capital Eco-Pro Group, theWork Guidelines for Investment Expansion of Capital Eco-Pro Group,etc.Investment
stage
TheSolid Waste Environment—Engineering Management System Construction,theGuidelines for WholeProcess Cost Control,theGuidelines for Project Implementation and Delivery Management, etc.Constructionstage
Orientation for solutions
Adopt a customer-centered an approach to promotesolution implementation and improve customer valueDesign products based on customer needs
Customer evaluation mechanism
Optimize solutions based on
customer needsE?cient and high-quality implementation based on customer needs
DeliveryReview and summaryFeedback anditeration
Adjust and optimizebased on actualconditionsIntegrated customized
solutions
Implement unied standard to assure quality, prot,
e?ciency, risk control and stability
Standard system across the whole projectcycleProductcerticationstandardsProductwithdrawalstandards
Productevaluationstandards
Projectdecision-makingstandardsProjectevaluationstandards
ProjectimplementationstandardsProjectcontinuousservicestandards
ProjectdeliverystandardsClosed-loopmanagement
Actual risks control assurance
Project risk control assurance
Full-cycle risk identication Risk controlRisk emergency response Risk managementevaluationRisk early-warning at critical nodes
……
Manage project process to ensure compliance
with standards and requirementsLean project process management
Intercommunication of project informationProcess management for the project standardsystem implementationInformation system application
……
Provide methodologies and professionalassistance for project operation to assure qualityProject operation capability empowerment
Expert base: expertise supportCase base: review—experiencesummary—sharing
Emergency response team: a team consists
of experts and experienced internal staff is
established to o?er targeted assistance in case
of di?culties in project implementation
……
Risk assuranceProcess assurance
Capability assurance
In 2023, the Company carried out special safety and quality inspections for high-risk projects, and formulated safety and qualityinspection records and re-inspection records. The unannounced investigations
accounted for 10% below. In 2023, the Companyhas conducted 31 safety and quality inspections for high-risk projects, with 100% coverage. 224 potential risks had beenidentied and rectied, with 100% rectication rate.
Capital Eco-Pro Group Conducts Special Inspections on High-Risk Projects to AssureProduction SafetyCase
Inspection at High-Risk Projects
The unannounced investigations:A unannounced investigation system where the inspection is directly performed at the grassroot level and project site without priornotication or reception.
5251
Environmental Performance Social Performance Governance Performance
Capital Eco-Pro Group2023 Environmental, Social and Governance Report
Capital Eco-Pro Group's Information-based Project Management
Rene ProjectOperation
ExpertiseEmpowerment
Capital Eco-Pro Group consistently enhances project implementation standards,improves quality management processes, accurately controls the quality requirementsacross the project life cycle, promotes project standardization, and ensures thesustainability and long-term benets of projects. In 2023, the Company has successfullypassed the external audit of ISO 9001 Quality Management System.In 2023, we prioritized the establishment of information-based system for projectconstruction, carried out targeted refined management activities including functionaloptimization and system upgrades in alignment with di?erent characteristics in termsof investment and technology, opened up project information management channels,and realized real-time sharing and efficient exchange of project information, therebycomprehensively improving project management e?ciency.
By establishing expert teams, implementing special plans, and developing problemmanuals, Capital Eco-Pro Group has bolstered the project service quality and createda high-quality project delivery system. In 2023, the Company assisted customers inavoiding nearly 100 typical construction problems in advance through specic-purposepublicity and on-site technical exchanges, thereby playing a dual role of both expertiseand service support. By the end of the reporting period, the high-quality delivery systemhad been applied in 7 projects, providing practical solutions for construction projects.
Investment?Optimize the investment management information system and improve information-based investmentmanagement;?Upgrade and optimize the management functions of six modules in the investment management systemincluding urban water, solid waste, and ecology, and add real-time information display and output functions;
?
Add basic information form of investment projects into the investment management system, as well as keyinformation indicators for EPCO
and entrusted operation projects;?Improve the Company's investment feasibility report and due diligence report templates for each business type,including sewage, water supply, equity mergers and acquisitions, incineration, sanitation and soil remediation,industrial atmosphere, resources, and energy, etc.
Technology
?Improve information-based project management and promote the data exchange between the PMS
system,the investment management system, ECP
, and partners’ project management systems.
The ''Problems Summarization for Water Works'' program aims to promote the implementation of high-qualitydelivery through summarization of numerous typical problems for waterworks, and better serve the project.On November 8, 2023, the Company’s high-quality delivery team went into the project in Fengtai County andconducted in-depth face-to-face discussions with the Project Manager, the Contractor and the Employer on theproblems encountered in the whole management process, including project design management, constructionand installation, process package implementation and operation. The project management developed a returnvisit plan, established a customer service system and user data archive, promoted close collaboration betweenbusiness units and customers, and improved the Company’s project quality and corporate quality.
The Company Launches ''Problems Summarization for Water Works'' Program to ImproveProject Quality
Case
EPCO: The ''EPC + Operation'' model for investment projects where the Employer entrusts the general contractor to undertake engineering, construction, procurement,as well as operation and maintenance for a certain period of time during the operation upon completion of the project.
PMS: Project Management System.
ECP: E-Commercial Platform.
Capital Eco-Pro Group’s Product Lineup Scheme
Build a product management system to realize e?cient management, promotion and application ofproducts;
Sort out the Company's technological products, screen and determine the list of library products, andpromote the upgrading and iteration of technological products.
Design the functional framework of the product library, and gradually build product library function instages;
Assure ServiceQuality
Capital Eco-Pro Group has always adhered to the bottom line of quality. The Companyis dedicated to providing customers with high-quality, reliable, and trustworthy integratedservices in the elds of urban water, solid waste, industrial air, and resource energy.In 2023, the Company updated a variety of systems including theManagement Measuresfor the Operation and Maintenance of Water Supply Networksto improve the water supplymanagement system and provide institutional guarantees for high-quality water supplyservices. The Company applied digital technology to build a product library, thus achievingintegrated and standardized management of project information.We integrate product management requirements and build Capital Eco-Pro Group productlibrary to lay a solid foundation for high-quality service while accelerating the establishmentof the Company's information-based management system.
Capital Eco-Pro Group's Initiatives to Ensure Water Supply Quality by Digital MeansWater SupplyComprehensively upgrade the GIS system, pipe network engineering system, hotline system, and work order systemfor water supply pipe network, and promote such initiatives in more than 10 projects in Xuzhou, Chengdu, and otherplaces.
5453
Environmental Performance Social Performance Governance PerformanceCapital Eco-Pro Group2023 Environmental, Social and Governance Report
Overview of Capital Eco-Pro Group’s Project Operation Evaluation
Table Capital Eco-Pro Group’s Customer Satisfaction in 2023
While bolstering the construction of operation management system, Capital Eco-Pro Group places paramount importance on feedbackfrom customers and experts, conducts operational evaluation on various water supply and sewage treatment projects, therebycomprehensively improving water treatment services.
Water supply evaluation teamSewage evaluation team
?
From May to October 2023, the water supplyevaluation team performed expert evaluations onfive project companies and reviews on two projectcompanies, proposing a total of 478 rectications.?Promote the rectication and follow-up of evaluatedprojects: rectications had completed for over 95%of projects in 2022, and over 60% in 2023, withremaining projects under adjustment.
?
In 2023, the sewage projects were subject todiversied evaluation including regional evaluationand regional cross evaluation, and the operationevaluations on 98 companies involving municipalsewage projects/industrial park sewage projectswere successfully completed, in which 22companies were subject to on-site evaluationsby the operation department, 76 subject to self-evaluations, and 2 subject to reviews on operationevaluation.
The urban-rural water supply integration project aims at improving drinking water safety in rural areas notably demonstrates theCompany's unswerving commitment to social responsibility. In 2023, we implemented the urban-rural water supply integrationprojects in Susong County, Anqing City, Anhui Province, Zongyang County, Tongling City, Anhui Province, and Fanchang District,Wuhu City, Anhui Province, serving a total population of over 4 million.
Capital Eco-Pro Group Helps Urban-Rural Water Supply Integration, Showcasing CorporateResponsibility
Case
Laoting Capital's cooling circulating water and zero sewage discharge BOT project revises the internal control standards forwater quality and the management measures for chemicals based on actual production, and develops new internal controlstandards for the refrigerant water system and raw water system to improve the water qualification rate and enhance theCompany’s water supply quality.In 2023, this project performed sampling and testing of water treatment chemicals to realize more e?cient and orderly on-sitedosing, and ensure stable water quality. In 2023, Laoting Capital’s internal laboratory completed more than 20,000 water qualitytests and more than 80 water treatment chemicals tests.
Laoting Capital Industrial Water Company Adopts Multiple Measures to Safeguard Water SupplyQualityCase
Laoting Capital’s Internal Laboratory
Sewage TreatmentIn terms of operation system management, Linyi City Company has carried out pilot construction of single-plant digitaloperation and regional intensive operation, realizing intensive operation management in seven sewage treatmentplants;In terms of specialized equipment, the equipment asset management system (EAM) has been promoted in theCompany’s water supply and sewage treatment projects in line with the equipment point inspection standards. In 2023,the EAM was applied to 63 project companies, with 51% coverage. The laboratory information management system(LIMS) was promoted in 186 laboratories, covering sewage projects with capacity over 10,000 tons and all watersupply projects.
Optimize CustomerExperience
Capital Eco-Pro Group actively engages in providing customers with full-process high-quality services, consistently optimizes service system, bolsters communication withcustomers, and improves service and customer satisfaction.The Company diligently adheres to internal systems such as theDetailed Rules forHigh-Quality Delivery Evaluation,theTypical Problems Collection of Water Works,theGuidelines for Water Supply Service Management, theGuidelines for Meter ReadingProcess Management,and theProject Operation Management Measures.It has putin place online and offline customer communication channels, established customercomplaint handling mechanism, carried out service optimization based on customerfeedback, standardized management processes, with the aim to spare no efforts toimprove customer satisfaction.In terms of service satisfaction, we conduct regular customer visits and disseminatequestionnaires within each business segment to understand customer needs,consistently improve our service and deliver better services.
Sewage services
94.2%
Soil remediation (score)
95.9
Sanitation projects (score)
93.5
Domestic waste incineration (score)
95.0
Water environment management (score)
97.9
Municipal water supply
94.1%
Industrial water
100%
5655
Environmental Performance Social Performance Governance PerformanceCapital Eco-Pro Group2023 Environmental, Social and Governance Report
Explain to the customer for invalid complaints
Acceptancehandlingreceiptfollow-upclosurenot satised
satisedwithin the time limit
Customer Complaints Handling Procedure
Capital Eco-Pro Group’s Customer Satisfaction Improvement Initiatives in 2023
Intensively analyze customer needs to improve customer service quality based on the working concept of ''one policy for oneenterprise, scheduling on a monthly basis'';Guided by customer needs, ensure su?cient pressure and high quality to improve water supply quality;Improve transaction function of the online business system, and further bolster the standardization, digitalization, andconvenience of water supply services;Continue to carry out customer satisfaction survey, and apply the customer service management(CRM)system to assist inmanaging customer relationships for existing projects.
Customer Complaints Handling RequirementsEstablish a work process and clarify handling time limit;
Create a complaint handling records and regularly analyze complaint work orders based on closed-loop handling;
Respond quickly to customer complaints, reply to customers with handling result within 3 working days, explain the reasonsand promised time limit to customers for the problems unresolved within the specied handling period;
The timeliness of complaint handling shall not be less than 98%;
Establish a follow-up mechanism, with 100% follow-up rate.
Xuzhou Capital in Jiangsu Province prioritizes the continuous improvement in telephone tra?c as one of the key focuses of itsannual CWCI
work. It collaborates with multiple departments to identify business improvement opportunities at ''pre-sale'', ''in-sale'' and ''after-sale'' activities, aiming for enhancing its water supply service capabilities. With a series of customer serviceinitiatives, Xuzhou Capital sees a 36.00% decrease in customer calls in recent years, a 10.50% increase in telephone accessrate, and a 56.60% increase in the followers on o?cial account.
Capital Starlight Wins Customer Recognition for Intensive Research on After-sales ServiceMechanismCase
In 2023, Capital Starlight revised and improved its after-sales service mechanism, updated regular follow-ups, andhelped the Company track current user status. With morefrequently communication with customers, it improved after-sales service,and reduced after-sales service frequency.Since the vigorous implementation of the after-salesservice mechanism, the Capital Starlight’s after-salesservice incidents saw signicantly decrease, and customersatisfaction of after-sales services reached over 90% in2023.
Capital Starlight Wins Customer Recognition for Intensive Research on After-sales ServiceMechanismCase
After-sales Engineer Inspecting Equipment
Capital Water Continuous Improvement (CWCI): A comprehensive and e?ective continuous improvement management system, which is goal-oriented and targets atmultiple dimensions such as safe production, marketing services, early-stage management, and basic management to identify, eliminate, and prevent losses, achieveperformance improvement, and enhance management.
InnovationManagementMechanism
In 2023, the investmentof Capital Eco-ProGroup in innovative R&Dreached
RMB
million
Capital Eco-Pro Group has standardized themanagement of technological innovation throughsuch systems as theScientic Research ProjectManagement Mechanism,and has establishedan organizational structure centered on theTechnology Innovation Committee, with clearresponsibilities of each department, subsidiary,and project team. Furthermore, the Companyhas implemented the requirements for scienticresearch project management by establishingIPD
processes, the ''open competition for thebest candidates'' mechanism, as well as otherinitiatives.
StrengthenInnovative R&D
Technological innovation is the primary productive force for the corporate development.Capital Eco-Pro Group seizes innovative opportunities, improves technologicalinnovation management system, continues to increase R&D spending, bolsterstechnological capability reserve, and secures technological innovation achievements.
Taking problem-solving as the evaluation standard, the ''open competition for the best candidates'' mechanism promotes thesharing and e?ective exchange of technological innovation information between headquarters and front-line production projects,to integrate technology and industry and improve quality and e?ciency. Capital Eco-Pro Group implements ''open competitionfor the best candidates'' mechanism in 10 highly-technological upgrade projects with notable di?culty.
Capital Eco-Pro Group Initiates ''Open Competition for the Best Candidates'' to AdvanceTechnological UpgradeCase
Integrated Product Development, a project management method based on cooperation and collaboration.
5857
Environmental Performance Social Performance Governance PerformanceCapital Eco-Pro Group2023 Environmental, Social and Governance Report
On April 19, 2023, Capital Eco-Pro Group unveiled 16 technological products and solutions at the 24th IE expo China,showcasing the Company's innovation achievements in technology innovation, intelligent manufacturing, and solutions. Thesetechnological products include technological innovation achievements and practices in solutions, technical services, smartmodules, smart platforms, and smart equipment, thereby commencing Capital Eco-Pro Group's new explorations to servecustomers with technology and professional strength based on its previous operation-based customer services.To enhance the Company's technological innovation strength, Capital Eco-Pro Group adheres to the ''721'' technologicalinnovation concept, namely, devoting 70% of our main e?orts to promoting the application of technology in current businessactivities, allocating 20% of our e?orts to break through industry bottlenecks in business scenarios, and sparing 10% of oure?orts to engage in strategic R&D for the future development of the industry. This proactive approach enhances the Company’stechnological capabilities, promotes the continuous product iteration, and ushers new development momentum.
Capital Eco-Pro Group Rolls out Technological Products at IE expo China, Pioneering theIndustry DevelopmentCase
Capital Eco-Pro Group's Smart Digital Environmental TechnologySolution
Innovative R&DProgress
Capital Eco-Pro Group is dedicated to providing high-quality products, e?cient operationalservices and solutions. With sharp insights into industry trends, the Company adheres to thevalue transformation of environmental industry from pollution control to energy utilization ofresources, and initiates a digital revolution across ''urban water, solid waste, industrial air,and resource energy'' business sectors, thus promoting society to advance towards a smartenvironmental protection era.Capital Eco-Pro Group continues to increase scientific research spending. The Companyfollows market demand to improve technological innovation efficiency and empowersbusiness activities through systematic, resource-based, and digital means to solveenvironmental pollution issues. Additionally, the Company saves energy and recyclesresources during production, ultimately enabling the realization of ''carbon peaking andcarbon neutrality'' goal.
Extracellular polymeric substances: Macromolecular substances secreted on cell surface which facilitate microbial cell aggregation and play an important role in thegeneration and stability of biolm and anaerobic granular sludge.
Capital Eco-Pro Group builds a corporate riskprofiling thematic system based on abnormalityidentification and risk warning of enterprisepollution source data. The Company developsand launches an emission right and total-volumemanagement system as well as a comprehensivecarbon emission management system centeringon pollution and carbon emission reduction. In thenew field of ecological environment monitoring,Capital Eco-Pro Group develops and launchesan environmental noise monitoring system and acomprehensive nuclear and radiation managementsystem. By the end of the reporting period, thissmart environmental protection product was appliedin Jiujiang City, Jiangxi Province, Huainan City,Anhui Province, and other regions.
Capital Eco-Pro Group Upgrades Environmental Monitoring and Releases Smart EnvironmentalProtection Products V2.0Case
System Interface of Some Smart Environmental Protection Products
Capital Eco-Pro Group at the IE expo China
Blue Water Plant is a technology concept for future low-carbon sewage treatment plants released by Capital Eco-Pro Group in September 2022. It aims to achieve multiple goals of substance/energy conversion, carbon neutrality,and intelligent control, and facilitate leapfrog transformation of sewage treatment plants into resource and energyfactories under the new concept. In 2023, the Blue Water Plant concept was featured in The Source and widelyspread across the globe.The two core technologies in Blue Water Plant concept include CREATE
TM aerobic granular sludge and ASMART
?sewage plantintelligent control system.CREATE
TMaerobic granular sludge technology is known as the next-generation water treatment technology. This technologysuccessfully extracts EPS
from granular sludge, revolutionizes secondary sedimentation tanks, and promotes thetransformation and upgrading of sewage treatment from pollutant removal to recycling. CREATE aerobic granular sludgetechnology boasts for better sedimentation performance compared to traditional processes, reducing operating costs by morethan 20%, carbon emissions by more than 30%, and construction land use by more than 50%.ASMART
? is a biological model-based intelligent control system for sewage treatment plants. It enables scientic decision-making and lean production through integrated and intelligent business management model. Upon application, the systemreduces energy and chemical consumption by 10%-40%, and carbon emissions by more than 20%. In 2023, ASMART
?wasapplied in 16 sewage treatment plants with a total treatment capacity of 1.43 million tons per day.
Capital Eco-Pro Group Launches ''Blue Water Plant'' Program to Create the New Prospect ofHigh-E?ciency and Zero-Carbon Water Industry
Case
Capital Eco-Pro Group’s ''Blue Water Plant'' Program
6059
Environmental Performance Social Performance Governance PerformanceCapital Eco-Pro Group2023 Environmental, Social and Governance Report
Capital Eco-Pro Group continues to invest in technological R&D, and has won numerousawards, thus further accelerating the pace of high-quality innovative enterprise evolution.
Capital Eco-Pro Group's awards in the eld of science, technology, and innovation (partial)
The third prize of the 1st National Enterprise DigitalScene Innovation Professional Competition of the 4thChina Industrial Internet CompetitionIssued by SASACDescription Biological modeling- based intelligentdecision-making and process warning evaluation
Beijing New Technology and New Product (Service)CertificateIssued by Beijing Municipal Science & TechnologyCommissionDescription CREATE aerobic granular sludge
The second prize of the 2022 China Industry-University-Research Cooperation Innovation and Promotion Award
Mercury Prize-Application Industry Newcomer-SilverAward
The second prize of Science and Technology Award ofAll-China Environment Federation
The second prize of 2023 Science and TechnologyAward of Beijing Hydraulic Engineering Society
Issued by All-China Environment FederationDescription WEAM Ecological Smart Operation PlatformThe Recommended Catalogue of Smart WaterEnvironment Innovation Application Cases
Issued by Zhongguancun Digital Economic Industry AllianceDescription WEAM Ecological Smart Operation Platform2023 National Enterprise Digital Application TypicalScenes
Description Research and Practice on Key Technologiesfor E?ciency Improvement and Layout Optimization ofSponge City Source Facilities
The second prize of 2022 Science and Technology ProgressAward of Beijing Science and Technology Award
Issued by China Association of Productivity PromotionCenters
Description Research and Application of Key GenericTechnologies for Collaborative and Innovative Multi-PollutantEmission of Incineration Flue Gas
The second Prize of the 2022 Productivity PromotionAward (Innovative Development)
Issued by Chinese Institute 0f Business Administration,State-owned Assets Management Research Committeeof China Finance Society, Innovation World Weekly,China State-owned Enterprise Management
Description WEAM Ecological Smart Operation Platform
The second prize of 2023 (the 9th) National EnterpriseManagement Innovation Achievements
Issued by Beijing Municipal Commission of Developmentand Reform, Beijing Municipal Science & TechnologyCommissionDescription Water Environmental Asset ManagementPlatform PANTA
The 18th Beijing New Technology and New Product(Service) Certication
The third prize of ''Maker Beijing 2023'' SME Innovationand Entrepreneurship CompetitionIssued by Beijing Municipal Bureau of Economy andInformation TechnologyDescription Solution for Total Discharge (Reuse) ofLandfill Leachate
Description Key Technologies and EngineeringApplications for Process Coupling and DirectionalRegulation of Wetland Biological Habitat
Description Key Technology and Intelligent Platform forWater Pollution Source Tracing Control
Description Water Environmental Asset ManagementSystem Establishment and Digital Tools PANTAIssued by China Industry-University-Research InstituteCollaboration Association
Issued by Beijing Hydraulic Engineering Society
Issued by All-China Environment Federation
Issued by IWA Young Water Professionals SteeringCommittee
Description Demonstration and Application of ArticialWetland Technology for E?cient Deamination,Dephosphorization and Water Quality Improvement
Issued by Beijing Municipal Science & TechnologyCommission, Administrative Commission of ZhongguancunScience Park
6261
Environmental Performance Social Performance Governance Performance
Capital Eco-Pro Group2023 Environmental, Social and Governance Report
In 2023, upon audit by Beijing MunicipalScience & Technology Commission,Administrative Commission ofZhongguancun Science Park, CapitalEco-Pro Group was recognized as a''Zhongguancun High-tech Enterprise''.This honor marked affirmation andrecognition in terms of independentintellectual property rights, technologicalR&D capabilities, and technologicalinnovation capabilities.
Capital Eco-Pro Group is Awarded Zhongguancun High-tech EnterpriseCase
Capital Eco-Pro Group’s Zhongguancun High-tech Enterprise Certicate
In the latest list of ''Double-hundred Enterprises (One Hundred Growing Enterprises and One Hundred InnovativeEnterprises)'' announced by the State-owned Assets Supervision and Administration Commission (SASAC) of the StateCouncil, Capital Eco-Pro Group is shortlisted into ''Double-hundred Enterprises (One Hundred Growing Enterprises andOne Hundred Innovative Enterprises)'', its subsidiaries Capital Air and Capital Environmental are shortlisted into ''ScienceReform Enterprises''. The Company's technological innovation-based development achievements are recognized.
The ''Double-Hundred Action Plan'' and ''Science Reform Action Plan'' are special actions organized by the Leadership Group forthe Reform of State-Owned Enterprises of the State Council for the reform of state-owned enterprises. Capital Eco-Pro Grouphas been deeply engaged in the environmental protection industry for more than 20 years, providing e?cient, intelligent, andgreen solutions to customers in the elds of urban water and water environment integrated services, solid waste comprehensivetreatment, atmospheric environment and industrial services, resources, and energy. Capital Eco-Pro Group will adhere to theprimary business of ecological environment, rely on technological innovation, promote the R&D of technological products andmarket transformation, and expand the stronghold for development.
Capital Eco-Pro Group Shortlisted into the ''Double-hundred Enterprises (One Hundred GrowingEnterprises and One Hundred Innovative Enterprises)'' and ''Science Reform Enterprises'' Listby SASACCase
IntellectualProperty RightsProtection
Capital Eco-Pro Group continues to improve itsinnovation management and implementationmechanism, and relentlessly promotes theseamless integration of innovative R&Dresults with the Company’s business model.In 2023, we targeted the transformation ofinnovation achievements while keeping aneye on enterprise management efficiencyand staffing, developed and continuouslyimproved the intellectual property managementmechanism construction plan, and provideinstitutional guidelines for the implementation ofstandardized intellectual property managementand employee incentive systems.IndicatorsUnit2023Total number of patents led in 2023/77Number of led patents by type
Invention patent/32Utility model patent/45Total number of patents granted in 2023/82Number of f granted patents by type
Invention patent/23Utility model patent/59Total number of cumulative grants/894Number of cumulative grants by type
Invention patent/118Utility model patent/760
During the reportingperiod, Capital Eco-ProGroup led
patent applications
with
patents granted
6463
Environmental Performance Social Performance Governance PerformanceCapital Eco-Pro Group2023 Environmental, Social and Governance Report
The corporate development cannot be divorced from the surging momentum brought by its employees.Regarding employees as the most valuable asset of the Company, Capital Eco-Pro Group improvesthe employee development system, e?ectively safeguards employee rights, cares for employees’ dailywork and lives, and conveys family warmth to them.
In full compliance with relevant laws and regulations such as theLabor Law of thePeople’s Republic of China, theLabor Contract Law of the People's Republic of China,Capital Eco-Pro Group has developed theEmployment Management Measuresand the
Labor Contract Management Measures, with the aim to e?ectively safeguards employeerights and interests. Furthermore, the Company tolerates no forced labor, child labor,discrimination, vicious competition and other violations.
People-Oriented Strategy Empowers EmployeeDevelopment
FollowingCompliantEmployment
Following the principle of distribution accordingto work, the Company has established andcontinuously improved internal systems suchas theCompensation Management Measures,and implements equal pay for equal work,thus ensuring fair and competitive employeecompensation.Capital Eco-Pro Group has been activelypromoting diversied and localized employment,offering equal employment opportunitiesfor employees from different backgrounds,professions, cultures, experiences, regions, andethnicities, and creating sufficient jobs for thepopulation in poverty-stricken areas to promotethe employment. In 2023, Capital Eco-ProGroup recruited 26 ethnic minority employees,223 rural employees and 2 disabled employees.
Capital Eco-Pro Group had employees16,931Ethnic minority employees
Disabled employees
Employee turnover rate
3.60%
Labor contract signing rate
100%
Salaried employees16,910
By the end of the reporting period
IndicatorsUnit2023PercentageTotal number of employeesPerson16,931100%Total number of employees byemployment type
Regular employeePerson16,91099.88%InternPerson210.12%Total number of employees bygender
MalePerson11,55968.36%FemalePerson5,35131.64%Total number of employees by age
29 and belowPerson2,65215.68%30-50 Person11,83469.98%above 50Person2,42414.34%
Number of employees byeducational background
Senior high schooland below
Person3,68821.81%Junior collegePerson6,41537.94%UndergraduatePerson5,88134.78%Master and abovePerson9265.48%Number of employees by rank
Senior managementPerson130.08%Middle managementPerson660.39%Junior managementPerson16,83199.53%
Number of employees bygeographical region
Chinese mainlandPerson16,60198.17%Hong Kong SAR,Macau SAR andTaiwan
Person20.01%OverseasPerson3071.82%Number of special employees
Ethnic minorityemployees
Person9735.75%Disabled employeesPerson880.52%Number of female employees byrank
Senior managementPerson538.46%
Person2740.91%Employee turnover%3.60%
Table Capital Eco-Pro Group’s Employment in 2023
In 2023, Capital Eco-Pro Grouprecruited
ethnic minority employees
rural employees
disabled employees
6665
Environmental Performance Social Performance Governance PerformanceCapital Eco-Pro Group2023 Environmental, Social and Governance Report
Capital Eco-Pro Group places paramount importance on talent development. Byestablishing a robust compensation management system, improving employee promotionmechanism, organizing a series of talent management initiatives, and bolstering internalcommunication, the Company strives to build a high-quality and professional talentteam to provide a strong talent guarantee for the Company’s continuous innovation anddevelopment.Capital Eco-Pro Group continues to strengthen cooperation with various universities,implement the ''Roaring Water Action Plan'', enrich the Company’s talent resources, andcomprehensively safeguard talent quality.
The Company attaches great importance to employee competency development. Wehave developed relevant management measures for employee training, and establishedonline learning platform to organize diversied employee training programs, with the aimto enhance employee competencies in professional skills and leadership development,and promote the cultivation of compound talents.
Capital Eco-Pro Group has established a talent promotion mechanism in compliancewith relevant management measures, and launched innovative measures such as ''multi-level for one post, multi-post for one level'' to provide employees with diverse promotionopportunities.Capital Eco-Pro Group constantly improves its compensation system and managementsystem, implements a salary structure of ''post salary + performance bonus''. In 2023,the Company rationalized the rules of value distribution, reformed the salary andperformance system, and gradually built an equal incentive system based on strategyand full-sta? performance management.The Company implements a ''three-linkage'' performance evaluation mechanism atheadquarters and various business units, tying company performance, departmentperformance, with individual performance, with the aim to stimulate employee potential.
In August 2023, Capital Eco-Pro Group held a university-enterprise cooperationsymposium with the College of Environment and Ecology, Chongqing University. Allparties exchanged views on talent demand, talent cultivation and employment services,and established a stable communication channel, thereby laying a solid foundation forlong-term cooperation.
The ''Roaring Water Action Plan'' aims to optimize allocation, tap the potential and increase efficiency, create a ''talentecosystem'' application model, and focus on addressing the scarcity of top-notch talents in the industry, as well as internalstructural oversta?ng/understa?ng, with the aim to realize reasonable turnover and optimal allocation of employees.
Safeguard TalentDevelopment
Talent Pool
CompetencyDevelopment
Talent Incentives
Capital Eco-Pro Group’s ''Roaring Water Action Plan''
Capital Eco-Pro Group's ''Three-linkage'' Performance Evaluation Mechanism
The Company's performance is mainly evaluated based on core quantitative performance indicatorsThe department performance is mainly evaluated based on strategic work, routine functional jobs, and temporary jobsIndividual performance is mainly evaluated based on the employee's performance commitments to the department
CaseCapital Eco-Pro Group Organizes Employee Development Training to Build a Talent TeamFrom April to June 2023, Capital Eco-Pro Group organized four training sessions for marketing employees in Huai’an, Chengdu,Nanchang, and Xinxiang, with more than 200 participants. The Company is committed to building a highly capable marketingteam, and enhancing the team’s full-process project management capabilities, investment capabilities, and marketing capabilities.
2023 Capital Eco-Pro Group’s Training PerformanceIndicatorsUnit2023Total number of employees trainedPerson13,354
Number of regular employees trained by gender
MalePerson9,199FemalePerson4,155Total training hoursHour480,459Average training hoursHour35.98
Total training hours of regular employees by gender
MaleHour322,870FemaleHour157,589Total training daysDay4.50The Company’s training spending
RMBmillion
9.89
6867
Environmental Performance Social Performance Governance PerformanceCapital Eco-Pro Group2023 Environmental, Social and Governance Report
Capital Eco-Pro Group cares about the work and life of its employees, and hasdeveloped an internal system, theLabor Employment Precautions Manual, to identifydaily work risks and establish a friendly working environment. For employee leave andattendance, the Company has developed theAttendance and Leave ManagementMeasures to ensure that employees balance work and rest.The Company complies with theLabor Law of the People's Republic of China,implements an internal enterprise annuity plan in addition to ve social insurances andone housing fund for employees, and provides a variety of non-salary benets such asheating expense reimbursement and trade union welfare. In addition, the Company hasbeen purchasing medical insurance for employees and their children. In 2023, morethan 800 employees were insured, and more than 600 children were insured, with 110%compensation rate.The Company regularly pays comforting visits to di?cult employees and has arrangedsummer daycare classes for six consecutive years, showcasing care for employees andtheir families. In addition, the Company organizes various activities on Women’s Dayand Children’s Day to strengthen the company cohesion.
PursueHumanistic Care
Case
Case
Case
Summer Daycare Class—Caring for Employees' Children in Summer Vacation
Capital Eco-Pro Group Organizes Employee Comforting Conservations to ConveyCorporate Warmth
Capital Eco-Pro Group Organizes ''Skillful Youth, Sharing Brilliance'' Women’s Day Activity
Following the principle of the labor union’s diligent arrangementfor employees to rest assured and children enjoy a happysummer vacation, Capital Eco-Pro Group organizes summerdaycare classes, provides a safe and welcoming activity spacefor children of working couples and e?ectively plans their summervacation. By the end of 2023, the Company had organized sixsummer daycare classes and o?ered care services for more than100 employee families.
On January 11, 2023, the Company’ssenior management paid sincerecomforting visits to difficult employees,and conveyed the message that theParty and the Company would help themovercome di?culties through various ways.They hoped that the difficult employeeswould maintain a positive attitude, remainconfident in life, and get out of thepredicament as soon as possible.
On March 7, Capital Eco-Pro Group organized ''Skillful Youth, Sharing Brilliance'' themed activity, 330 female employeesparticipated this event to experience the charm of hand-painted glass cups, thus further enhancing the team cohesion.
Summer Daycare Class
Employee Visit Symposium
''Skillful Youth, Sharing Brilliance'' Themed Activity
In 2023
More than
employees from milddle and backo?ces were insured
More than
children of employesswere insured
Compensation rate110%
7069
Environmental Performance Social Performance Governance PerformanceCapital Eco-Pro Group2023 Environmental, Social and Governance Report
Capital Eco-Pro Group's Safety Management Structure
Serious injury and fatal accidents
Occupational health accidents
Primary-liability tra?c accidents
Environmental pollution accidents
Fire accidents
Capital Eco-Pro Group is deeply engaged in promoting safety standardization inenvironmental protection, and has established a ''1+7'' safe production standardizationstandard based on the existing safe production standardization of water sector,standardized the work requirements and safety technical requirements at operation site,and promoted the e?ective implementation of various safety production measures. In2023, there were other 17 enterprises standardized for safe production, including 13conforming to enterprise standards, 3 conforming to Class-2 government standards
,and 1 conforming to Class-3 government standards.
SafetyStandardizationDevelopment
Safe Production Standardization MeetingCapital Eco-Pro Group's ''1+7'' Model Diagram
Basicmanagement
Safety technologyand sitemanagement
WatersupplyMunicipalatmosphereIndustrialatmosphere
SewagetreatmentMunicipalsanitationWasteincinerationKitchenwastetreatment
''CSPMS'' system: Capital Eco-Pro Group’s safe production management system.
Safe production standardized enterprises are divided into Class-1 enterprises (the highest level), Class-2 enterprises, and Class-3 enterprises. Class-1 enterprises arereviewed and announced by the State Administration of Work Safety; Class-2 enterprises are reviewed and announced by the work safety supervision and managementauthorities of the provinces (autonomous regions, municipalities directly under the central government) and Xinjiang Production and Construction Corps where theenterprises are located; Class-3 enterprises are reviewed and announced by the work safety supervision and management authorities of the cities (prefectures, leagues)where the enterprises are located.
Five-Zero Goal
Performance Indicators100%
coverage of graded riskmanagement in grassroot enterprises100%
supervision of potentialmajor accident risks
100%
coverage of safetyinspection activities100%
usage of the''CSPMS'' system
7271
Environmental Performance Social Performance Governance PerformanceCapital Eco-Pro Group2023 Environmental, Social and Governance Report
Capital Eco-Pro Group continues to promote the construction of safety management system,implements various safety management measures, and facilitates the realization of ''Five-Zero'' safetygoals. Additionally, we bolster the partners' safety management activities, encourage them to organizesafety training and other activities, and jointly promote safety culture.
In full compliance with laws and regulations including theSafety Pro duction Law of thePeople's Republic of China, Capital Eco-Pro Group has developed internal policies suchas theSafety Production Responsibility Systemand theSafety Management Measuresfor Dangerous Operationto standardize the Company’s safety management activities. In2023, we updated 17 systems including the Management Measures for Formulation andImplementation of Safety Production Plans, further consolidating the foundation of safetymanagement.The Company has established a safety management structure where the Boardof Directors acts as the highest decision-making body, and set up the SafetyCommittee and the Safety Committee Office to jointly engage in safety supervisionand management, thereby providing organizational guarantee for the Company’s safeproduction.
?The highest decision-making body for safety management?The highest deliberative body for safe production;?The Company's Party Committee Secretary and the General Manager share theposition of the Safety Committee Director;?Responsible for determining the philosophy, policy, and goals of safe production,reviewing major safe production matters, and comprehensively coordinating safeproduction management.The Safety Committee O?ce
The Safety Committee
The Board ofDirectorse
?Working body of the Safety Committee;?Responsible for promoting the implementation and supervision of safe production-related matters.
People-oriented, ecological protection, scientic management, accidentprevention, all-employee participation, comprehensive treatment.HSE Policy
HSE VisionCreate a healthy and safe working environment and build a greenecological home.
Robust Development, Consolidating SafetyManagement
Implement SafeProduction
Capital Eco-Pro Group strictly implements variousmanagement requirements and objectives, and hasorganized three specialized training sessions on the safeproduction responsibility system, to raise the responsibilityawareness among all employees. In addition, theCompany has established special working groups in eachbusiness units, and the Safety Committee O?ce appliesthe ''CSPMS'' system to conduct hierarchical safetyperformance assessments in the headquarters, businessunits, and subsidiaries, thus realizing full coverage ofresponsibility inspection.In 2023, we organized a total of 150 spot checks on oursubsidiaries to promote the establishment of a robustresponsibility system among all units. By the end of thereporting period, the Company reported no major safetyaccidents, maintaining zero employee fatality for threeconsecutive years.
CaseCapital Eco-Pro Group Builds Standardized Demonstration Site to Set up Industrial BenchmarkIn 2023, the Company continued to strengthen the construction of safe production standardized demonstration sites, preparedtheInspection and Evaluation Standards for Safe Production Standardized Demonstration Sites for Construction Projects ofCapital Eco-Pro Group, completed pilot project construction, promoted the standardization of site construction activities, andensured construction safety.
Standardized Demonstration Site
Capital Eco-Pro Group has established a categorized and graded risk control workinggroup in accordance with theRisk Control Guidebook (Collection)and theRisk ControlList, created a dual prevention mechanism for categorized and graded safety risk controland potential risk investigation and management, and persisted in preventing safetyaccidents at the source.Capital Eco-Pro Group has established a ''two lists—one matrix'' risk managementmodel with reference to the Company’s guidebook and typical successful cases, andorganized internal suitability evaluations across the Group. During the reporting period,a total of 297 subsidiaries uploaded risk control lists through the ''CSPMS'' system, with45,056 hazards under control.The Company implements record-based management for medium and high-riskactivities in line with the safety risk management matrix, and performs safe productionresponsibilities by clarifying the supervision and inspection responsibilities of each levelof units and employees. In 2023, the Company had 212 hazardous chemical enterprises,396 hazardous chemical storage sites, and 1,335 hazardous chemical use sites, 1,521special operation personnel and 726 special equipment operators.
Review
Organize potentialsafety hazardsrectication andclosure
Closed-loop PotentialSafety HazardsScreening andRectication Procedure
Issue potentialsafety hazardsrectication notice
Create thePotentialSafety HazardsScreening andRectication Records
Safety inspection
Safety RiskPrevention andControl
Capital Eco-Pro Group's Potential Safety Hazards Screening and Rectication Procedure
By the end of the reportingperiod, the Companyreportedno
major safetyaccidents, maintaining
employee fatality
for three consecutiveyears
7473
Environmental Performance Social Performance Governance Performance
Capital Eco-Pro Group2023 Environmental, Social and Governance Report
In terms of potential safety hazardsscreening, the Company strictly implementstheManagement Measures for PotentialSafety Hazards Screening and Rectification,establishes a closed-loop screening process,and regularly conducts multi-level safety hazardsscreening and rectification to effectively curbmajor and serious production safety accidents.In 2023, Capital Eco-Pro Group organized 74corporate-level safety inspections, issued 74potential safety hazards rectification notices,inspected 95 units, covering 5 high-risk and 19medium-risk categories, with 100% recticationrate.
Capital Eco-Pro Group investedRMB
23.01
million
in safety technical upgrading.
In 2023
Case
Case
CaseCapital Eco-Pro Group Builds Standardized Demonstration Site to Set up Industrial Benchmark
Capital Eco-Pro Group Organizes Safety Training for Key Responsible Personnel to BolsterLeadership Team Capabilities
Capital Eco-Pro Group Organizes Specialized Training on Fire Protection and EmergencyRescue Knowledge to Instruct Emergency SkillsOn June 21st, an emergency drill for poisoning and su?ocation accidents in conned space took place at the Longqing CapitalChengxi Waterworks in Beijing. The drill demonstrated key aspects in safety control for conned space operations from multipleperspectives including risk analysis, equipment inspection, and operation in conned space, and tested the practicality andoperability of the Company's emergency plans to a greater extent.
In 2023, the Company organized nine safety training sessions for the key responsible personnel of the enterprise, with a total of
589 participants. By organizing examinations and awarding training certicates, all key responsible personnel participated in the
training, thus assuring the safety management capabilities of key responsible personnel.
On November 17th, the Company organized a specialized
training on re protection and emergency rescue knowledge for
2023, and invited experts to provide on-site instructions, with the
aim to improve employees’ emergency skills and emergencies
response handle.
Emergency Drills for Poisoning and Su?ocation Accidents in Conned Space
Key Responsible Personnel Safety Training
Specialized Training on Fire Protection and EmergencyRescue Knowledge
In 2023, Capital Eco-Pro Grouporganized corporate-level safetyinspections
potential safety hazards
potential safety hazards
rectication rate100%
In 2023, the Company heldmore than
1,000
safety emergency response drills
In 2023, Capital Eco-ProGroup conducted a total of1,400
training sessions onproduction safety
occupational health withmore than29,000participants
7675
Environmental Performance Social Performance Governance Performance
Capital Eco-Pro Group2023 Environmental, Social and Governance Report
Capital Eco-Pro Group proactively prevents emergency situations. Guided by theEmergency Management Measures for Production Safety Accidents, we haveestablished a ''The Group-Business Unit-Subsidiary'' three-tier emergency managementsystem. Furthermore, we conduct emergency drills for conned space rescue, hazardousgas poisoning and extreme weather, to enhance the ability of employees and projects inresponding to sudden risks as well as risk resilience. In 2023, the Company organizedmore than 1,000 safety emergency drills.
Safety EmergencyManagement
Capital Eco-Pro Group is keenly aware that safety culture construction and educationare important parts of safety management. The Company has developed and issuedtheManagement Measures for Safe Production Education and Training, coordinatesbusiness units and subsidiaries to jointly conduct safety training, and constantlyoptimizes training planning, in-house trainer cultivation and other core stages, with theaim to comprehensively improve employee safety awareness.The Company determines key safety positions,improves the abilities of employees in keypositions through safety education and training,and helps employees improve their safetyawareness and abilities by establishing a safeproduction knowledge base module in the''CSPMS'' system, organizing such activitiesas safe production month, and signing safetycommitment. In 2023, Capital Eco-Pro Groupconducted a total of 1,400 training sessions onproduction safety and occupational health, withmore than 29,000 participants.
Foster SafetyCulture
Case
Capital Eco-Pro Group Organizes Safety Culture Promotion to Create Safe ProductionAtmosphere
In 2023, Capital Eco-Pro Group organized safety culture promotion event. The Company released 11 thematic posters takinginto account business and job safety risks. Subsidiaries at all levels actively responded to this event, and developed a total of2,028 banners and 5,698 standard posters, thereby creating a good safety production culture atmosphere.
Safety Culture Month Posters
Capital Eco-Pro Group's Occupational Health and Safety Measures
Capital Eco-Pro Group's Supplier Safety Management Measures
In 2023, a total of
9,327
employeesmade safety commitmentsthrough the ''CSPMS'' system
Coverage rate71%
7877
Environmental Performance Social Performance Governance PerformanceCapital Eco-Pro Group2023 Environmental, Social and Governance Report
The Capital Eco-Pro Group persists inorganizing ''Safety Culture Month'' everyyear, as well as a variety of activities such assafety commitment, standardized thematicpromotion, safety lecture by the top leader,safety knowledge competition, etc., tocomprehensively raise the safety awarenessamong employees. In 2023, a total of 9,327employees made safety commitments throughthe ''CSPMS'' system, with 71% coverage rate.
? Develop and disseminate more than 2,000Safety Diariesto promote regulations, occupational health, and safetyconcepts, and the like.
? Determine the qualications of stakeholders and organize project safety communication meetings;? Establish a smooth information exchange mechanism with relevant parties;? Provide safety information and explanations to outsiders.? Incorporate safe production into the contract with stakeholders;? Incorporate stakeholders into the Company’s own safety management system, create records, and conduct regular safetymanagement activities such as potential hazards screening, safety training and risk identication.? Routinely conduct the safety performance assessment and acceptance management for stakeholder;? Put stakeholder accidents and company internal accidents on an equal footing, and report, investigate, and handle theaccidents in a timely manner;? Establish a supplier classication system and develop punishment measures for stakeholder safety accidents.? Upon completion of supplier service, sort out and archive the supplier safety management records;? Develop theSafe Production Blacklistof Capital Eco-Pro Group, and remove suppliers in violation of national safeproduction laws and regulations as well as company contracts/agreements.
? Clarify possible workplace occupational diseases, consequences, and occupational health protection conditions in the
labour contract;? Pre-evaluate projects that may cause occupational hazards;? Prioritize technologies, processes, materials and equipment conducive to the prevention and control of occupational
diseases.
? The Company has developed and issued theStandard Manual for Identication Signs of Capital Eco-Pro Groupoutliningstandard regulations for warning signs and risk notication boards in occupational health, environmental protection, safeproduction, etc., to promote standardization in units at all levels.
? Create occupational health monitoring records for employees and organized routine physical examinations for operators;? Provide and distribute qualied personal protective equipment (PPEs) to relevant employees;? Conduct daily monitoring of workplace occupational diseases;? Establish relevant facilities, emergency evacuation passages, and necessary hazard-elimination areas in toxic and
hazardous workplaces;? Conduct routine maintenance and inspection of occupational disease prevention facilities;
Provide prompt medical diagnosis for employees with occupational diseases, and arranged recuperation for them.
System promotion
Supplier accessSupplier dailymanagementSupplierassessmentSupplierwithdrawal
Pre-jobprevention
Dailypromotion
On-the-jobprotection
In full compliance with laws and regulations such as theLaw of the People’s Republic ofChina on the Prevention and Control of Occupational Diseases, and theOccupationaland Health Safety Management System Certification, Capital Eco-Pro Group hasdeveloped and continuously optimized its internal system, theOccupational HealthManagement Measures, to curb occupational health and safety impacts and protect thephysical and mental health of employees.The Company has established a daily supervision mechanism for employee safetyand health, to conduct supervision and inspection in pre-job prevention, on-the-jobprotection, and daily system promotion, and protect the safety and health of employees.The Company has been certified to OHSAS 18001 Occupational Health and SafetyManagement System.
Capital Eco-Pro Group is dedicated to building a safe production environment andworking with partners to bolster safe production management and maintain a healthytrend of production activities. The Company has developed supplier safe productionmanagement systems such as theSupplier Management Measuresand theSafetyManagement Measures for Stakeholders. During the reporting period, the Companyoptimized theSupplier Misconduct Handling Measuresand formulated theDetailedRules for the Safe Construction Management of Pipe Trench Projectsas well asother management requirements for key production links, thus further strengtheninginstitutional guarantees and control intensity.The Company diligently adheres to various system management regulations, onlycooperates with suppliers in possession of basic qualifications such as quality,environmental, occupational health, safety management system certications, relevantproduction and operation licenses, and proposes management requirements for everystep of supplier management to improve supplier safety control capabilities.
ImproveOccupationalHealth
Promote SafetyManagement ofRelated Parties
Capital Eco-Pro Group pays close attention to industry development trend, actively engages in variousexchange activities with outstanding peers, universities, and scientic research institutions, promotestechnology exchange and resource sharing, and promotes collaborative industry development.
Capital Eco-Pro Group proactively exchanges and cooperates with outstanding peersat home and abroad, breaks information barriers, expands cooperation areas, andultimately enables common progress of the Company and the industry.
In 2023, Capital Eco-Pro Group continued to build bridges between universities andenterprises, established communication platforms, gathered the wisdom and strengthof scientific research experts from Tsinghua University and other universities, andconsistently deepened industry-university-research integration.
Capital Eco-Pro Group leverages its own advantages, actively engages in thedevelopment of industry standards, and organizes industry exchange conferencesto promote the high-quality development of public utilities. In 2023, the Company’sResearch and Demonstration Application of Carbon Footprint Assessment and CarbonManagement Platform for Urban Water Supply and Drainage Systems project wassuccessfully selected as the 2022 China-EU Carbon Neutrality (Ministry of Industry andInformation Technology) Innovation Cooperation Demonstration Project.
By creating a cooperation platform and organizing seminars, Capital Eco-Pro Groupexplores cutting-edge water treatment technologies and promotes the sustainableupgrading of the environmental protection industry. Our efforts focus on building aChina-Netherlands Future Sewage Treatment Technology R&D Center. We invite aprofessor from Technische Universiteit Delft as the Company’s chief scientist, therebyconsolidating the foundation of cooperation and strengthening the Company’s scienticand technological innovation strength.
In addition, we are also constantly sharing the Company's advanced experience andproducts in communication and cooperation. In 2023, the ''Blue Water Plant'' conceptwas featured in The Source and widely spread internationally, thus helping the Companyto expand into overseas markets.
Hand in Hand, Boosting Industry Development
IndustryExchanges
Advocate University—Enterprise Cooperation
Domestic Cooperation
InternationalExchanges
Capital Eco-Pro Group’s Involvement in the Development of Industry Standards in 2023
Chief development organization for the Technical Standards for Monitoring CH
and N
O Emissions from Sewage TreatmentPlants, a group standard of China Urban Water AssociationParticipating organization for two national standards, 20220831-T-469 and 20220832-T-469Participating organization for the Assessment Indicator System of Cleaner Production for Municipal Solid Waste Incineration(DB11/T2164-2023)Participating organization for the group standard—the Technical Specification for Intelligent Judgment of Urban SewerImagesDrafting organization for the group standard—the Occupational Standards for the Power Industry-Waste Incineration PowerGeneration Operation Duty O?cer
Capital Eco-Pro Group at the Roundtable Conference
In April 2023, the China Urban Water Association organized the''2022/2023 China Urban Water Association Annual Meeting andUrban Water Technology and Product Exhibition''. As the support unitfor the Market Committee of China Urban Water Association, CapitalEco-Pro Group organized the ''Urban Water Industry InnovativeDevelopment''Technical Forum and the ''Urban Water System Greenand Low Carbon Development'' Roundtable Conference to explore thedevelopment trend of the industry, further tap the development potential,help strategic upgrading, and enhance the Company's brand inuenceand core competitiveness in the industry.
Case
Capital Eco-Pro Group Focuses on Urban Water Development to Empower High-Quality IndustryDevelopment
Case
Case
Case
Capital Eco-Pro Group Organizes ''Science & Technology Empower Blue Journey'' Summit
Capital Eco-Pro Group Inks Cooperative Agreement with Tsinghua University to AdvanceIndustry-University-Research Integration
Capital Eco-Pro Group Cooperates with Chang'an University in Ecological Restoration R&D toAccelerate the Commercialization of Scientic & Technological Achievements
In May 2023, Capital Eco-Pro Group successfully organizedthe Sino-Dutch Future Sewage Treatment Technology R&DCenter International Summit. This event focused on in-depthdiscussions on sewage resources and energy recoverytechnologies, and provided new ideas for the e?cient use ofenergy in the environmental protection industry in the future.
Sino-Dutch Future Sewage Treatment Technology R&D CenterInternational Summit
Software Copyright Certificate for Intelligent Zoned IrrigationSystem for Rock Slope Ecological Restoration
In November 2023, Capital Eco-Pro Group signed a strategic cooperation framework agreement with the Center for Water andEcology, Tsinghua University to engage in precise industry-university-research cooperation centering on the Company's businessdirection and high-quality operation, and initially reached cooperation intentions on two programs, namely Development ofSewage Treatment Technology and Fluoride-Containing Sludge Recycling Equipment in Fluoride-related Emerging Industry, andDevelopment, E?ectiveness Evaluation, and Process Construction of Sewage Sludge Chromatography Desanding Separator.
Capital Eco-Pro Group continues to promote the ''R&Dof Ecological Restoration Substrates and ConstructionTechnology for Mine Slope'' in cooperation with Chang’anUniversity, and has completed mechanical, observation,planting experiments, etc. In 2023, the program successfullyapplied for one patent, published two articles, and obtainedthe software copyright certificate for Intelligent ZonedIrrigation System for Rock Slope Ecological Restoration.
8079
Environmental Performance Social Performance Governance Performance
Capital Eco-Pro Group2023 Environmental, Social and Governance Report
Capital Eco-Pro Group remains true to its original aspiration and has been actively giving back tosociety in the elds of community welfare, rural revitalization, volunteer service, etc., thus creating apublic welfare model with the characteristics of Capital Eco-Pro Group. The Company partners withall sectors of society to create better life together. In 2023, 4,701 employees of Capital Eco-Pro Groupdonated RMB 306,289.13 in the ''July 1st'' Party member donation activity to provide assistance to theelderly, hospitals, schools and disaster relief.
As a utility service provider, Capital Eco-Pro Group organizes ''June 5th'' WorldEnvironment Day promotion activities every year, and has set up environmentalpromotion and education bases in Dalian, Qianjiang, Jishou and Zhumadian, aimingfor gradually infiltrating the awareness of protecting environment, improving ecology,rational utilization and conservation of resources into the daily lives of residents, andpromoting the construction of a conservation-minded society.In 2023, Capital Eco-Pro Group organized activities such as visiting environmentalprotection facilities and explaining environmental protection knowledge at various projectsites with the theme of ''Promote the Modernization of Harmonious Coexistence betweenHuman and Nature'', to popularize environmental protection knowledge and enhancepublic support for environmental protection work.
Adherence to Original Aspiration, Contributingto Community Welfare
CirculateEnvironmentalProtectionPhilosophy
Capital Eco-Pro Group’s ''World Environment Day ''Posters
Capital Eco-Pro Group’s ''World Environment Day'' ActivitiesMore than 150 children from Ma'anshanPearl Garden Kindergarten in AnhuiProvince closely experienced the processof water production and purication in the''Exploring the Secrets of EnvironmentalProtection with Children''activity.Students from Ziqiao Primary School inWuling District, Changde City, HunanProvince, learned about the sewagetreatment process at the HuangmuguanSewage Treatment Plant.Anhui Capital organized the ''ExploringWaste with Fun and Raising EnvironmentalProtection Awareness among Children''activity. The children shared theirknowledge of environmental protectionin the event as well as their feelingsand gains from the visit. They also drewpictures of the future Earth in their ownminds.Sui County, Shangqiu City, Henan Province,and Shangqiu Normal University jointlylaunched the ''Treasuring Resources andProtecting the Environment'' educationalcampaign.Staff of the Xuzhou Water Authority ofJiangsu Province visited Xuzhou Capital’sXuzhuang Water Plant and the WaterSupply Age Exhibition Hall.
Tieling Capital, Liaoning Province,invited sta? from the Municipal Ecologyand Environment Bureau, Tieling PublicAssets Investment Operation GroupCo., Ltd., PICC, Shanghai PudongDevelopment Bank Tieling Branch,teachers and students from the HealthVocational School, as well as YinzhouDistrict residents to participate in thewater plant opening event.
8281
Environmental Performance Social Performance Governance PerformanceCapital Eco-Pro Group2023 Environmental, Social and Governance Report
Case
Capital Eco-Pro Group Undertakes Environmental Facilities Open Day to Arouse EnvironmentalProtection Enthusiasm among the Public
Capital Eco-Pro Group’s Environmental Protection Education BasesSui County Capital was named as the ecological environment promotionand education base in Henan ProvinceZhumadian Tailai Environmental Protection and Energy Co., Ltd. wasrecognized as the sixth batch of ecological environment promotion andeducation bases by the Department of Ecology and Environment ofHenan ProvinceQuanling Waste Incineration Plant was rated as the demonstrationecological progress education base in Nanchang CityQixian waste incineration project established an internship and trainingbase for Henan University
Capital Eco-Pro Group pays close attentionto daily environmental protection promotion,plans and organizes promotion and educationactivities in waste classification, resourceconservation, waste power generation, andsewage treatment. In 2023, the Companyorganized 7 waste classification lectures inschools, governments, and villages, with morethan 2,000 participants.
On September 26th, the Qianjiang Municipal Ecology and Environment Bureau of Hubei Province organized EnvironmentalFacilities Open Day. Capital Eco-Pro Group received 130 children from Weicai Kindergarten. The reception sta? explained thewhole process of waste disposal and resource utilization, and guided them to visit the central control room, the ''brain'' of thewaste incineration power plant. This event not only helped children learn environmental protection knowledge, but also arousedtheir enthusiasm for waste classication and ecological protection.
Qianjiang Environmental Facilities Open Day Event
Case
Case
Case
Capital Eco-Pro Group Sponsors China Open, Innovating a New Model of ''EnvironmentalProtection + Technology + Sports''
Capital Eco-Pro Group Organizes Partner Assistance Activities to Boost Rural Revitalization
Capital Eco-Pro Group Organizes Partner Assistance Activities to Boost Rural Revitalization
China Open
In 2023, Capital Eco-Pro Group sponsoredChina Open, becoming the first diamondsponsor from environmental protectionindustry in the history of China Open.We proposed the sponsorship concept of''Playing Tennis Together on One Earth'', andprovided audiences with a new experienceof ''Environmental Protection + Technology +Sports'' by providing intelligent environmentalprotection equipment at the court, recyclingused tennis balls and interactive activitiessuch as gashapon. During the event, werecycled and disposed of more than 3,000used tennis balls, and played the vital role ofenvironmental protection in sports events.
Capital Eco-Pro Group actively responds to the national call and consistently promotesrural revitalization strategy, sparing no e?orts to improve rural water quality, economicand educational development, and people’s well-being.RuralRevitalization
20232022Assistance donationRMB 2.51 millionRMB 1.31 millionConsumption assistanceRMB 3.19 millionRMB 3.90 millionEmployment security
Created job opportunities for 270
agricultural household people
Created job opportunities for 289agricultural household peopleCreated job opportunities for 31agricultural household universitygraduates
Lushan Domestic Waste Incineration Project established arural revitalization office, developed theDaily Supervision andManagement System for Village-resident Cadres, and completedthe partner assistance for monitoring objects taking into accountactual situation of the Company and the villages. Lushan DomesticWaste Incineration Project implemented the ''Five-One'' monitoringmechanism for re-poverty prevention, and eliminated the risk of re-poverty in a timely manner. By the end of the reporting period, theCompany had arranged two village-resident work teams, helping 57households and 131 people in the partner assistance villages to belifted out of poverty.
Tianjin Ninghe Capital and Tianjin University of Science and Technology provided public welfare assistance to poverty-strickencollege students from pairing assistance areas through ''donation for education''. In 2023, Ninghe Capital o?ered a total aid fundsof RMB 22,350 and helped three students.
Lushan Domestic Waste Incineration Project’s Partner Assistance
In 2023, the Company organized
more than
2,000 participants
waste classication lectures inschools,governments, and villages
8483
Environmental Performance Social Performance Governance PerformanceCapital Eco-Pro Group2023 Environmental, Social and Governance Report
Capital Eco-Pro Group unremittingly makes contributions to a harmonious livingenvironment, and has established employee volunteer teams such as the ''Blue Hat''convenience service team to participate in various community public welfare activitiesand convey corporate warmth.Engagingin VolunteerActivitiesCase
Case
CaseCase
Capital Eco-Pro Group Organizes ''Snow and Ice Clearing'' Thematic Party Day Activity to Playthe Leading Role of Party Members
Capital Eco-Pro Group Supports Disability Assistance to Care for Special Community
Capital Eco-Pro Group Facilitates Business Environment to Practice High-Quality ServicePhilosophyCapital Eco-Pro Group's Volunteers Go to Fair to Strengthen Communication with Communities
On December 14th, Capital Eco-Pro Group organized all Party members andcadres to carry out snow and ice clearing activities. Party members and cadresallocated respective work and cooperated tacitly, cleared the snow on mainaccess roads and surrounding pedestrian steps in the parking lot of Xindadu Park,and sprayed snow-melting agent on the ground to avoid subsequent freezing.This activity greatly facilitated the vehicular and pedestrian tra?c, showcasing thespirit of leadership and solidarity of the Branch Party members and cadres.
To further mobilize and unite social forces to care for and assist the disabled, andcreate a favorable social atmosphere for high-quality local development, RenshouCapital offered a donation to the Sichuan Foundation for Disabled Persons onAugust 17th with the support of the Capital Eco-Pro Group. The Company won thehonor of ''The Disabled-caring Enterprise''.
On January 19, 2023, Si County Capital’s ''Little Water Drops'' service team went to the fair, conveyed water conservationand winter antifreeze knowledge to residents, and promptly solved residents water supply problems through water productionprocesses and antifreeze tips. In addition, the service team carried out ''community service'' and ''door-to-door service for living-alone elderly'' to strengthen enterprise—community ties.
Donation Certicate Issued by the SichuanFoundation for Disabled Persons
Si County Capital's Volunteers Going to Fair
Xuzhou Capital’s ''Blue Hat'' Service
Xuzhou Capital in Jiangsu Province deeply understands the
comments and recommendations of enterprises and residents,
and bolsters the standardization and convenience of water
supply services. 30 ''Blue Hat'' members of the customer
service center are available at various service platforms such
as business halls, hotlines, websites, and WeChat Service to
provide users with consultation, repair request, order transfer,
business acceptance, as well as other services.
Beyond that, in order to ensure the normal operation of shops,
Xuzhou Capital launches a 24-hour emergency response
with ''Blue Hat'' water tankers available at any time, thereby
performing the Company’s high-efficiency and high-quality
service principles through practical actions.
Nanyang Capital’s ''River Patrol by Youth Volunteers''
Xuzhou Capital’s ''Blue Hat'' Service
Case
Capital Eco-Pro Group Organizes ''River Patrol by Youth Volunteers'' to Showcase ItsEnvironmental Responsibilities
From August 23rd to 24th, Nanyang Capital’s Youth League
General Branch organized a ''River Patrol by Youth Volunteers''
thematic Youth League Day. All members of the Youth League
assumed the role of ''river environmental workers'' to collect
and clean up plastic bottles, garbage bags, and paper scraps
scattered in various tributaries of the Danjiangkou Reservoir.
Additionally, they conducted ooding and drowning prevention
education for barbecue and fishing crowds, shouldering the
corporate responsibility of ''cleaning and maintaining rivers to
nourish the people with clean water'' through practical actions.
8685
Environmental Performance Social Performance Governance PerformanceCapital Eco-Pro Group2023 Environmental, Social and Governance Report
GovernancePerformance
G
Operation Integrity, Adheringto Business EthicsStable Development,Enhancing Risk ManagementJoint Value Creation,Establishing a ResponsibleSupply Chain
Capital Eco-Pro Group adheres strictly to the principle of legal governance,establishes itself on a robust corporate governance framework, develops astandardized and e?cient system for risk management and privacy protection, andjoins hands with its partners to foster industrial growth and advancement.
8887
Environmental Performance Social Performance Governance PerformanceCapital Eco-Pro Group2023 Environmental, Social and Governance Report
IndicatorsUnit20232022Shareholders' meetingsSession46Directors' meetingsSession2013Audit Committee's meetingsSession88Nomination Committee's meetingsSession2/Remuneration and Appraisal Committee's meetingsSession1/Strategy and Sustainable Development Committee's meetingsSession2/Law and Compliance Construction Committee's meetingsSession12
IndicatorsUnit20232022The number of board membersPerson1111The number of board members categorized bygender
FemalePerson23MalePerson98The number of board members categorized byindependence
Independent directorsPerson44Non-independent directorsPerson77The number of board members categorized byeducational backgrounds
Graduates with bachelor's andmaster’s degrees
Person88Graduates with doctor’s degreePerson33The number of board members categorized byage
30-39Person1140-49Person5450-59Person3360-69Person23
The number of directors held in other listedcompanies
0Person661Person342Person203Person014Person00Percentage of females on the Executive Committee or equivalent positions%27.333.3
Capital Eco-Pro Group is committed to the ESG philosophy, continuously building and enhancinga strong governance structure. The Company proactively fosters an ethos of honesty and integrity,making corporate governance a fundamental pillar for its sustainable and high-caliber growth.
Capital Eco-Pro Group diligently formulates and enhances its internalArticles ofAssociationin full compliance with legal standards. Our governance structure is anchoredby the Board of Directors as the supreme decision-making entity, complemented byve key committees, such as the Strategy and Sustainable Development Committee,which are tasked with supervising and directing specic areas. This structure lays anorganizational foundation for the Company’s scientic and e?cient operations.
Capital Eco-Pro Group dedicates efforts to constructing a Board of Directors and a seniormanagement team that are diverse, inclusive, professional, and compliant, emphasizing thediversity of board members and the independence of decision-making. In 2023, Capital Eco-ProGroup held 20 board meetings with a 100% attendance rate among directors. Throughout theyear, the Company established and revised a total of 48 institutional policies.
Operation Integrity, Adhering to Business Ethics
StrengthenGovernanceFoundations
The Corporate Governance Structure of Capital Eco-Pro Group
Board Diversity and Decision-making Independence
The Number of Shareholders' Meetings, Directors' Meetings, and Committees' Meetings
Convened by Capital Eco-Pro Group in 2023
The Number of Board Members of Di?erent CategoriesShareholders' MeetingDirectors' MeetingAudit Committee
NominationCommittee
Remuneration andAppraisal Committee
Strategy and SustainableDevelopment Committee
Law and ComplianceConstruction CommitteeDirector attendency rate100%
Decision-making independence
? The Company adheres to the regulations outlined in theMeasures for Administration of Independent Directorsof Listed Companies.Independent directors are required to maintain their independence. In principle, anindependent director shall not hold such a position in more than three listed companies domestically, while alsoguaranteeing that they possess ample time and energy to e?ciently fulll their duties as independent directors.? The tenure of independent directors aligns with that of the other directors at listed companies. Upon thecompletion of their term, they are eligible for reappointment. Nonetheless, their continuous tenure in o?ce shallnot surpass six years.
Board member diversity? The Company, taking into account directors’ gender, age, educational background, skills and other factors,selects talents with di?erent professional skills and cultural backgrounds to join the Board.
9089
Environmental Performance Social Performance Governance PerformanceCapital Eco-Pro Group2023 Environmental, Social and Governance Report
Capital Eco-Pro Group’s Whistleblowing ChannelsAddress:
Discipline Inspection O?ce of Capital Eco-Pro Group, Building 2, Xindadu Hotel, 21 Chegongzhuang Street,Xicheng District, BeijingHotline:
010-84552266(8137)Email:
scgfjw@capitaleco-pro.com
Capital Eco-Pro Group has established and continuesto rene an investor management structure with theBoard of Directors as the highest decision-makingbody, diligently fulfilling its responsibilities andobligations to investors.In 2023, the Company organized a ''Small and MediumInvestors Visit Dongba Water Plant''communicationand exchange event to enhance the understanding ofsmall and medium shareholders about the Company’sbusiness philosophy and operations. During thereporting period, Capital Eco-Pro Group participatedin eight strategy meetings among securitiescompanies, heldtwelve o?ine research sessions andover 20 online sessions for both buyers and sellers,and addressed investor inquiries 116 times throughthe E-Interactive platform.Capital Eco-Pro Group adheres to the principles of openness and transparency, regularlyupdating its o?cial website and public accounts to convey the Company’s informationtruly, accurately, completely, and timely. In 2023, in response to national regulatoryrequirements, the Company revised its internalRegulations on Information DisclosureManagement, adding accountability claiming and information sharing mechanisms toe?ectively enhance the quality of information disclosure. As a result, we have achievedthe highest assessment rating of ''A'' in information disclosure for seven consecutiveyears.
We encourage customers, employees, and other stakeholders to report and appeal against any of the Company's acts violating lawsor disciplines through channels such as letters, phone calls, and emails, either anonymously or in real name. The Company rigorouslyimplements a system for complaints by letters and visits, and strictly prohibits actions such as expanding the circle of those informed,evading responsibilities, and using the reporting system for personal gain. We also protect whistleblowers’ rights and interests from harm.During the reporting period, Capital Eco-Pro Group was not involved in any signicant risk events such as major litigation, arbitration, orviolations leading to penalties.
In 2023, the Company gradually implemented a case undertaking responsibility system and reduced the backlog of complaints byletters and visits from previous years through measures such as frequent external investigations Concurrently, we analyzed theyear’s complaints by letters and visits and produced an annual analysis report, guiding the improvement of the Company’s integritymanagement practices.
The disciplinary inspectiondepartments across theCompany’s hierarchy areresponsible for centralizedhandling of complaints byletters and visits, and assigndesignated personnel tocode, register, and establishmanagement ledgers for thereporting.
After receiving complaints byletters and visits, the disciplinaryinspection departments acrossthe Company’s hierarchyconduct an initial assessmentto determine whether the casefalls within their jurisdiction andwhether it is the responsibility ofthe respective level's disciplinaryinspection team. They thenproceed to notify the real-namewhistleblower as regulated.
The disciplinary inspectiondepartments across theCompany's hierarchy registerthe complaints by letters andvisits in a ledger and transferthem timely as regulated.
The disciplinary inspectiondepartments across theCompany's hierarchy providefeedback on the handlingof complaints by letters andvisits in writing before the15th day of each month.
AcceptInformFeedback
Capital Eco-Pro Group has established a variety of complaint channels and a robustwhistleblowing and accepting mechanism in line with theImplementation Opinions onImproving the Processing of Complaints and Reports by Beijing Discipline Inspectionand Supervision Committee under the New Circumstancesand internal regulationssuch as theImplementation Measures for Improving the Processing of Complaints andReports by Discipline Inspection and Supervision of Beijing Capital Eco-EnvironmentProtection Group Co., Ltd., to facilitate the creation of an honest and transparentbusiness environment.
Capital Eco-Pro Group unwaveringly builds an integrity culture. The Company takesinto account the actual situation of its employees and has instilled a culture of integritythroughout the organization by means of targeted training programs, including hostinglarge-scale warning and educational conferences. During the reporting period, CapitalEco-Pro Group achieved an average of 12 hours of integrity training per employee, withmore than 200 participants. Furthermore, the Company held 26 integrity conversationswith the top leader and business department principal of the project company outside ofBeijing.
In December 2023, Capital Eco-Pro Group convened a warning and education conference on ''learning from cases and drivingimprovement through resolutions'' for the Board of Directors and senior management, taking warning and educational videos as amedium to deeply instill the awareness of integrity among attendees.
Capital Eco-Pro Group, upholding integrity as its foundation, strictly adhering to the
Anti-Unfair Competition Law of the People’s Republic
of Chinaand other pertinent lawsand regulations, as well as the internalEmployee Conduct Code, has an unwaveringstance of zero tolerance towards immoral acts, including corruption, bribery, and fraud.In 2023, the Company formulated and implemented theRules of the Working Group forthe Coordination of Party Conduct and Integrity Building and Anti-corruptionInternally,focusing on the construction of the discipline inspection organization system, e?ectivelyenhancing the Company’s integrity in business operations.Furthermore, the Company enhances its efforts to pinpoint potential integrity risksby leveraging its ongoing work through routine supervision and case investigations,establishes a ledger for key issue leads and ensures proper follow-up in a bid tocollaboratively foster an honest and upright business environment.Concurrently, we adhere to the principle of ''learning from cases and driving improvementthrough resolutions'', and pinpoint vulnerabilities through the investigation and processingof cases to reinforce our ideological barriers against corruption and transformation.During the reporting period, the Company conducted a total of 13 inspections of the ''topleaders'' and leading groups at subordinate units.
Adhere toCompliance inOperations
Investor Management
Information Disclosure
WhistleblowingMechanism andWhistleblowerProtection
Integrity CultureBuilding
Capital Eco-Pro Group’s Process for Handling Complaints
Case
The Warning and Education Conference on 'Learning from Cases and Driving ImprovementThrough Resolutions'
Capital Eco-Pro Groupparticipated in
strategy meetings amongsecuritiescompanies hosted
o?ine research sessions
and ver
online sessionsfor bothbuyers and sellers
Circulation
9291
Environmental Performance Social Performance Governance PerformanceCapital Eco-Pro Group2023 Environmental, Social and Governance Report
Capital Eco-Pro Group places a high priority on risk management, continually enriches its riskmanagement mechanisms, and steadily advances risk identification, assessment, prevention, andcontrol. The Company actively safeguards customer privacy and data security, markedly improvesrisk awareness among both management and sta? at the grassroots level and cultivates a robust andsecure internal control atmosphere.
Capital Eco-Pro Group regularly identies its existing risks and integrates risk control intoevery aspect of its production and operations to create a safe and reliable environment.Capital Eco-Pro Group, in strict adherence to theShanghai Stock Exchange Guidelinesfor Environmental Information Disclosure by Listed Companiesand other regulatoryrequirements, has established and continuously refined internal policies such as theGeneral Principles for External Investment Management of Capital Eco-Pro Group,providing guidance and direction for standardizing the Company's risk managementpractices. In 2023, we established an Accountability Committee and revised theManagement Measures for the Investigation of Illegal Business Operations andInvestment Responsibilitiesin line with the requirements of the State-owned AssetsSupervision and Administration Commission of the State Council (SASAC) and theCompany’s development plan to help front-line managers of project companies clarifykey points of risk control and assign the responsibility for risk management to specicpositions and individuals.In 2023, the Company developed and implemented a comprehensive three-year planfor internal control monitoring and assessment, extending internal control evaluationsto all business projects. Furthermore, we initiated targeted initiatives for safety, health,and environmental management based on the outcomes of project audits, aiming toaccomplish the rst cycle of complete internal control monitoring and assessment from2022 to 2024. During the reporting period, Capital Eco-Pro Group’s internal controlassessment e?orts encompassed 219 project companies, reaching a coverage rate of
76.84%.
The Company conducts specialized risk training to continually strengthen employees'riskawareness and their ability to respond to risks. In 2023, we organized seven risk-specictraining sessions, with a total training duration of 269 hours.
In line with the ''Three Lines Model'' proposed by the International Institute of InternalAuditors (IIA), Capital Eco-Pro Group has set up an internal audit leadership systemdirected by the Party Committee and the Board of Directors under the oversight of theAudit Department, ensuring the implementation of risk audits and the rectification ofrelated issues throughout the Company, cascading from the top-level managementdown.
The Company carries out a variety of audit projects including individual audits, horizontalaudits, and interview surveys, providing diverse perspectives for improving its riskmanagement. Since 2021, up to the end of the reporting period, Capital Eco-Pro Grouphas audited 327 subsidiary companies
. It is projected that by the end of 2025, thetarget of ''full coverage of internal control audits in ve years'' will be achieved.
The person primarily responsible for internal auditChairmanAssisting in overseeing internal auditSecretary ofthe CPC
Accepting and cooperating with the internal audit supervisionand implementing the rectication of audit problemsThemanagement
Focusing on the actual implementation of the project in strategic landing, corporategovernance, internal control, operating e?ciency, and legal compliance
Concentrating on addressing shared challenges and critical management aspects,while examining the origins of issues and implementing remedies from a corporateheadquarters perspective
Adapting to the requirements of internal control auditing to advance the audit process toearlier stages and close to the front line, changing from passive to active, and exertingthe audit consultation function
IndividualAudits
HorizontalAudits
InterviewSurveys
Stable Development, Enhancing RiskManagement
StrengthenInternal RiskControl
Implement AuditOversight
Procurement Risk Training
Internal Audit Leadership System
Internal Project Control Audits of Capital Eco-Pro Group
Statistical criteria: Only the companies involved in individual projects and interview surveys are counted.
9493
Environmental Performance Social Performance Governance PerformanceCapital Eco-Pro Group2023 Environmental, Social and Governance Report
Capital Eco-Pro Group, strictly following theCybersecurity Law of the People's Republicof Chinaand other pertinent laws and regulations, continuously enhances its networkinformation security system, implements cybersecurity protection measures, promotesa culture of cybersecurity, and embeds privacy and information security throughout theprocess of its business operations.
Strengthening informationsecurity protection
Strengthening thepromotion of cybersecurityculture
Enhancing thecybersecurity response ofsubsidiaries
Supplieronboarding
SupplierClassicationManagement
SupplierSupervisionandElimination
Strengthening externalcooperation
? Arranging special personnel to be on duty during important meetings and events? Conducting regular cybersecurity patrols, vulnerability scans, and penetration testing? Deploying cybersecurity protection facilities? As of the end of the reporting period, the Company’s cybersecurity protectiondeployment rate had reached 100%, with a repair rate of 100% for high-riskvulnerabilities and a ltering rate for spam and virus emails of 99%.
? Organizing all employees to participate in National Cybersecurity Promotion Week,cybersecurity awareness training, and other activities
? Providing immediate response and support for subsidiaries to address cybersecurityissues
? Collaborating with cybersecurity firms and governmental regulatory authorities toaddress common cybersecurity issues
Ensure DataSecurity
Measures for Privacy and Information Security of Capital Eco-Pro Group
Supplier Management Process
Guided by its responsibility, Capital Eco-Pro Group continuously refines supplier onboarding,management, and evaluation processes, fosters the co-construction of supplier capabilities andvalue sharing through communication and exchange, and collaborates with partners to create a moresustainable, low-carbon, and accountable supply chain.
Joint Value Creation, Establishing a ResponsibleSupply Chain
Capital Eco-Pro Group, driven by its corporate development needs, under theBiddingLaw of the People’s Republic of Chinaand other pertinent laws and rules, as well asinternal rules and regulations such as theSupplier Management Measures, continuouslydeepens supplier management to establish a fair and transparent cooperativerelationship.In 2023, the Company consolidated and revised internal policies such as theSupplierManagement Guidelinesand theSupplier Misconduct Handling Measures, explicitlydening supplier misconduct and associated penalties, to enhance its overall suppliermanagement capabilities. During the reporting period, Capital Eco-Pro Group had a totalof 23,572 suppliers, with 237 approved, all located in the Chinese mainland.
? The Company adds new suppliers through open tendering and selective tendering. In 2023, Capital Eco-
Pro Group continued to enhance its e-commerce platform, achieving standardized management of itsbidding and tendering operations.
? he Company routinely performs comprehensive performance assessments on all suppliers, focusing onproduct quality, environment and safety, and subsequently categorizes them into di?erent tiers based onassessment outcomes.
? The Company regularly monitors and recties suppliers’ risk behaviors in line with internal procurementmanagement requirements;? The Company regularly publishes a list of suppliers with poor performance through channels such asDingTalk groups and OA notications;
? In 2023, the Company conducted on-site research of suppliers to comprehensively evaluate their ESG
practices and risk proles.
Enhance SupplierManagement
Supplier LifecycleManagement
9695
Environmental Performance Social Performance Governance PerformanceCapital Eco-Pro Group2023 Environmental, Social and Governance Report
Capital Eco-Pro Group places a high priority onbuilding the sustainable development capabilitiesof its suppliers, focusing on safety, compliance,and the environment to conduct ESG assessmentsand management of suppliers. During the reportingperiod, all approved suppliers of Capital Eco-ProGroup have signed the Social Responsibility Pledgeand Integrity Commitment Statement
. In 2023,all approved suppliers have obtained certicationssuch as ISO 9001, ISO 14001, and ISO 45001.? The Company strictly adheres to the internal regulations of theSafety Management Measuresfor Stakeholdersand imposes penalties on suppliers that experience safety incidents or havepotential safety hazards.? The Company requires all collective procurement suppliers to sign the Supplier IntegrityCommitment Statement and the Supplier Social Responsibility Pledge.? The Company requires suppliers to develop anti-corruption policies and regulations and toregularly conduct corruption risk assessments and audits.? The Company will terminate cooperation with suppliers that violate regulations.? The Company prioritizes cooperation with suppliers that use green, energy-saving, and low-carbon products and services.
Responsible SupplyChain
Applicable to approved suppliers.
Safety
Compliance
Environment
Capital Eco-Pro Group is committed to establishing and maintaining good cooperationrelationships with outstanding suppliers. In 2023, the Company held annual supplierconferences and specialized communication events to deepen cooperation andexchange with suppliers.
In December 2023, Capital Eco-Pro Grouporganized the annual supplier conferenceunder the theme of ''Cooperation,Construction, and Sharing''. The conferenceprovided a platform for listening to andaddressing the concerns of suppliers, andrecognized suppliers that excelled in theannual comprehensive evaluation and inresponding to social public events.
In 2023, the Company held acommunication and coordinationconference with suppliers in 24 categoriesto enhance their understanding andalignment with our procurement andsupplier management concepts, aimingto foster a close, harmonious, andsustainable partnership.
In 2023, the Company held a communication and coordination conference with suppliers in 24 categories to enhancetheir understanding and alignment with our procurement and supplier management concepts, aiming to foster a close,harmonious, and sustainable partnership.
Facilitate SupplierCommunication
Case
Case
Case
The Sixth Session of Supplier Conference of Capital Eco-Pro Group
Professional Supplier Communication and Coordination Conference
Technical Knowledge Training for Suppliers Selected for Centralized Procurement
''Cooperation, Construction, and Sharing'' Supplier Conference
Conference Between Professional Suppliers in 24 Categories
100%
of Capital Eco-Pro Group'sapproved suppliershave signed the SocialResponsibility Pledgeand Integrity CommitmentStatement
9897
Environmental Performance Social Performance Governance PerformanceCapital Eco-Pro Group2023 Environmental, Social and Governance Report
OutlookCapital Eco-Pro Group, deeply committed to its core business in environmentalprotection, boldly shoulders the responsibility of ecology environment protection,drives the evolution of its business through technological innovation and high-qualitydevelopment, and integrates with natural ecology for harmonious development.We will continue to improve the ESG institutional system, actively explore carbonemission reduction paths, and contribute to achieving a virtuous cycle of the ecosystem;We will leverage innovation as our driving force and safety as our protective barrier,steadfastly advancing the qualitative and centralized evolution of eco-friendly products;We will, with unwavering passion, collaborate closely with our sta? and a diverse rangeof partners to pioneer a new era for China’s environmental sector, collectively building aclean, lovely, and thriving home for everyone.''All are good at rst, but few prove themselves to be so at the last.'' We will, upholdingthe vision of becoming a ''trusted leader in environmental sustainability'', continueto forge ahead, acting as a companion to urban development and a guardian of theecology environment, tirelessly striving to build a beautiful China characterized by lucidwaters and lush mountains.
ESG PerformanceIssuePerformanceUnit20232022
2021
Economicperformance
Revenue
RMB 100million
213.19221.64228.13Total prot
RMB 100million
26.6949.1033.52Net prots attributable to the Parent
RMB 100million
16.0631.5523.42Basic earnings per shareYuan/share0.220.430.32ROEWA%5.6211.468.96Total assets
RMB 100million
1,093.591,048.951,085.45Total operating cost
RMB 100million
183.87196.28201.51Owners’ equity
RMB 100million
383.75385.01379.71Social contribution per shareyuan1.041.541.21
Environmentalperformance
Water supply capacity
10, 000 T /day
1,231.911,112.121,028.23Sewage treatment capacity
10, 000 T /day
1,462.751,453.851,471.40Sludge treatment capacityT /day545.00665.00/Recycled water treatment capacity
10, 000 T /day
51.9627.00 27.00Water supply plant operation/1019993Sewage plant and station operation/582579 506Recycled water plant operation/1355Drainage network operationkm7,859.28 6,829.90 6,216.50Water supply network operationkm20,521.6218,833.90 12,864.00Actual annual water output of a watersupply plant
100 million T15.8215.28 14.22
During the reporting period, the Company acquired 100% of the equity of BeijingEnergy Conservation Design Research Institute Co., Ltd., a subsidiary of our parentcompany, Beijing Capital Group Co., Ltd. Since both parties to the merger were under the control of Beijing Capital Group Co., Ltd. before and after the merger, which wasnot temporary, the merger is considered a business combination under common control. In accordance with the requirements of the corporate accounting standards, theCompany has made retrospective adjustments to the comparative gures and related data from the previous year.
10099
Outlook ESG Performance GRI G4 Standard Index Reader Feedback FormCapital Eco-Pro Group2023 Environmental, Social and Governance Report
Outlook
IssuePerformanceUnit202320222021
Environmentalperformance
Actual annual treatment capacity ofa sewage plant and a recycled waterplant
100 million T28.5727.27 26.30Actual annual production of recycledwater in a recycled water plant
10,000 T12,864.673,909.06 4,142.49Auxiliary water ratio%3.033.173.46Non-revenue water (NRW) rate%13.1413.914.13COD reduction 10, 000 T55.2650.68 47.27Total nitrogen reduction10, 000 T6.516.04 5.34BOD reduction10, 000 T19.3717.56 17.45Total phosphorus reduction10, 000 T0.960.950.88Recycled water consumption10, 000 T220.85205.22 121.64Fresh water consumption (productionand living water)
10, 000 T8,038.957,543.437,423.38Domestic waste disposal capacity
10, 000 T /
year
1,526.671,411.00 1,437.00Domestic waste disposed 10, 000 T874.93 669.42 592.25On-grid clean energy
100 millionkWh
21.6218.5011.67Dismantling quantity of electronicwaste
10, 000units
107.2376.17 121.96Hazardous waste treatment capacity10, 000 T4.985.31 1.20
Gas emissions
Oxynitride (NO
x)T2,8504,9611,561Oxynitride (SO
x)T596437217Particulate matter(PM)
T1007985Total hazardouswaste
Hazardous wastefrom productionand operation
T126,3978,11246,372Hazardous wastefrom the o?ce
Kg4331,800300Total non-hazardous waste
Non-hazardouswaste fromproduction andoperation
T556,554423,931117,829O?ce wasteT798808809
IssuePerformanceUnit202320222021
Environmentalperformance
Energy purchaseand consumption
Domestic waste(for fuel)
T6,102,7504,668,5683,365,875Totalconsumption ofnet purchasedelectricity
100 million
kWh
15.2918.0816.13Gasolineconsumption
L1,507,6691,356,939975,601Diesel fuelconsumption
L9,744,00710,102,0186,804,581Natural gasconsumption
m
2,298,1921,634,0061,246,321LPGconsumption
T122164102Purchased steamconsumption
GJ51,23949,66194,888Biomass fuelT530,827488,606/Total energyconsumption
10,000 tce174.69144.4998.29Energyconsumptionintensity
10,000
tce/ RMB
100 million
revenue
0.820.650.44
Source usage
Carbon sourceagent used
T201,357.53169,057.46102,418.58Dosage ofphosphorusremoval agent
T188,657.71166,409.22143,548.43Limeconsumption
T49,975.02//Activated carbonconsumption
T2,507.72//Ureaconsumption
T6,722.37//Chelating agentdosage
T3,626.27//
GHG emissions
Scope 1
10,000
tCO
e
191.82146.35133.40Scope 2
10,000tCO
e
87.75102.8999.45Scope 3
10,000tCO
e
0.230.200.14
102101
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IssuePerformanceUnit202320222021
Environmentalperformance
GHG emissions
Total GHGemissions
10,000tCO
e
279.80249.44232.99GHG emissionintensity
10,000tCO
e/ RMB100 millionrevenue
1.311.131.05Waste-to-energy emissionreduction
10,000tCO
e
121.47104.9046.49
Forestry carbonsink
Arbor carbonsequestration
10,000tCO
e
1.271.221.16Shrub carbonsequestration
10,000tCO
e
0.670.384.88Grassland carbonsequestration
10,000tCO
e
0.270.260.24Total emissionreduction
10,000tCO
e
2.211.866.28
Socialperformance
Total employeesby employmenttype
Regularemployees
Person16,91016,70217,949InternsPerson2135151Total regularemployees bygender
MalesPerson11,55911,34512,169FemalesPerson5,3515,3575,780Total regularemployees byage
<30Person2,6523,0163,50930-50Person11,83411,21911,742>50Person2,4242,4672,698
Total regularemployees byregion
Chinesemainlandemployees
Person16,60116,46216,226Employees inChina’s HongKong, Macao andTaiwan
Person278Overseasemployees
Person3072331,715Total regularemployees byeducationalbackground
Employeeswith senior highschool degreeand below
Person3,6884,8225,008Employees withcollege degree
Person6,4155,5165,659
IssuePerformanceUnit202320222021
Socialperformance
Total regularemployees byeducationalbackground
Employeeswith bachelor’sdegree
Person5,8815,5046,445Employees withmaster's degreeor above
Person926860837
Total regularemployees byrank
Seniormanagement
Person131513Middle-levelemployees
Person667879Ordinaryemployees
Person16,83116,60917,857Femaleproportion inmanagement
Females in seniormanagement
%38.4633.3338.42Females inmiddle-levelemployees
%40.9133.3325.05Other types ofemployees
Disabledemployees
Person889076Minorityemployees
Person973938870Total regularemployeesleaving theCompany bygender
Males leaving theCompany
Person986918683Females leavingthe Company
Person478353155Regularemployeesparticipating inthe training bygender
MalesPerson9,1999,24210,116FemalesPerson4,1554,0745,053Total traininghours of regularemployees bygender
MalesHour322,870335,907531,384FemalesHour157,589138,660259,903Labor contract signing rate%100100100Social insurance coverage rate%100100100Physical examination and healthrecord coverage rate
%100100100Proportion of employees participatingin trade unions
%/98.2898.41Per capita paid vacation daysDay9.69.810.8
104103
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IssuePerformanceUnit202320222021
Socialperformance
DonationRMB10,000251.42131.00127.00Consumption assistanceRMB10,000319.66390.23278.00Number of corruption litigation cases/000Number of employees killed inproduction safety accidents
Person000Safety training
Session1,4001,300900
Person /time29,00027,00017,000Number of safety emergency drillsSession1,0001,100660
Number of suppliers by region
Chinese
mainland
suppliers
23,57217,847>10,000
Suppliers
in overseas
regions and
China's
Hong Kong,
Macao and
Taiwan
regions
00/
Total investment in R&D expenses
RMB 100
million
1.672.401.40Total patents applied/7783/Number of patentsapplied by patentcategory
Patent of invention/32//Utility modelpatent
/45//Total patents authorized/8212483Total patentsauthorized bypatent category
Patent of invention/23142Utility modelpatent
/5911080Cumulative patents authorized
/894821/
Cumulativepatents authorizedby patent category
Patent of invention/11894/Appearancepatent
/1212/Other/44/Utility modelpatent
/760//
IssuePerformanceUnit202320222021
Socialperformance
Patents authorizedin 2023
Patents ofinventionauthorized
/23142Utility modelpatent authorized
/5911080Appearancepatent authorized
/0121
Governanceperformance
Shareholders' meetingsSession467Directors' meetingsSession201316Audit Committee's meetingsSession887Nomination Committee's meetingsSession2/4Remuneration and AppraisalCommittee's meetings
Session1//Strategy and Sustainable DevelopmentCommittee's meetings
Session2//Law and Compliance ConstructionCommittee's meetings
Session121The number of board membersPerson111111The number ofboard memberscategorized bygender
FemalePerson233MalePerson988The number ofboard memberscategorized byindependence
Independentdirectors
Person444Non-independentdirectors
Person777The number ofboard memberscategorizedby educationalbackgrounds
Graduates withbachelor's andmaster’s degrees
Person888Graduates withdoctor's degree
Person333The number ofboard memberscategorized byage
30-39Person11140-49Person54450-59Person33360-69Person233
106105
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IssuePerformanceUnit202320222021
Governanceperformance
The number ofdirectors heldin other listedcompanies
0Person6671Person3422Person2003Person0114Person004Percentage of females on the ExecutiveCommittee or equivalent positions
%27.333.333.3Number of integrity litigation cases/000Per capita hours of integrity trainingHour12//Total integrity training participantsPerson200+//Special risk training sessionsSession733Total hours of risk special trainingHour269310195Total suppliers/23,57217,847>10,000Annual suppliers approved in the Report/237170>100Signing rate of social responsibilitypledge for approved suppliers
%100//Signing rate of integrity statement forapproved suppliers
%100100/Proportion ofcertied approvedsuppliers
ISO 9001%10098100ISO 14001%1009493ISO 45001%1009493
Disclosure topic/Disclosure items
DisclosurePageGRI 2: General Disclosures 20212-1Organizational detailsP05-102-2Entities included in the organization's sustainability reportingAbout This Report2-3Reporting period, frequency and contact pointAbout This Report2-6Activities, value chain and other business relationshipsP96-982-7EmployeesP65-662-8Workers who are not employeesP66、P962-9Governance structure and compositionP11、P892-12
Role of the highest Role of the highest governance body in overseeing the
management of impacts
P11、P892-22Statement on sustainable development strategyP11-142-29Approach to stakeholder engagementP12GRI 3: Material Topics 20213-1Process to determine material topicsP133-2List of material topicsP133-3Management of material topicsP13GRI 201: Economic Performance 2016201-2Financial implications and other risks and opportunities due to climate changeP30201-3Dened benet plan obligations and other retirement plansP69GRI 204: Procurement Practices 2016
204-1Proportion of spending on local suppliersP96-98GRI 205 Anti-corruption 2016
205-1Operations assessed for risks related to corruptionP91-92205-2Communication and training about anti-corruption policies and proceduresP91-92205-3Conrmed incidents of corruption and actions takenP91-92GRI 206: Anti-competitive Behavior 2016
206-1
Legal actions for anti-competitive behaviour, anti-trust, and monopoly
practices
Not occurred
GRI G4 Standard Index
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Disclosure topic/Disclosure items
DisclosurePageGRI 301: Materials 2016
301-1Materials used by weight or volumeP38, P40301-2Recycled input materials usedP21-P22, P37301-3Reclaimed products and their packaging materialsP21-P22GRI 302: Energy 2016302-1Energy consumption within the organizationP36302-2Energy consumption outside the organizationP32, P36302-3Energy intensityP36302-4Reduction of energy consumptionP35-36302-5Reductions in energy requirements of products and servicesP32-33, P35-36GRI 303: Water and E?uents 2018
303-1Interactions with water as a shared resourceP21-22, P25-26303-2Management of water discharge related impactsP21-22, P37-40p-P44303-3Water withdrawalP37-39303-4Water dischargeP37-39, P44303-5Water consumptionP21-22, P37-40GRI 305: Emissions 2016305-1Direct (Scope 1) GHG emissionsP30-31305-2Energy indirect (Scope 2) GHG emissionsP30-31305-3Other indirect (Scope 3) GHG emissionsP30-31305-4GHG emissions intensityP08p-P30-31305-5Reduction of GHG emissionsP08p-P30-31305-6Emissions of Ozone-Depleting Substances (ODS)P26305-7
Nitrogen oxides (NOx), sulfur oxides (SOx), and other signicant air
emissions
P43GRI 306: E?uents and Waste 2016
306-1Water discharge by quality and destinationP100
Disclosure topic/Disclosure items
DisclosurePageGRI 306: E?uents and Waste 2016
306-2Waste by type and disposal methodP45306-3Signicant spills P29306-4Transportation of hazardous wasteP44-45306-5Water bodies a?ected by water discharges and/or runo?P21p-P25-26p-P45-47GRI 308: Supplier Environmental Assessment 2016
308-1New suppliers that were screened using environmental criteriaP97308-2Negative environmental impacts in the supply chain and actions takenP97GRI 401: Employment 2016
401-1New employee hires and employee turnoverP65-66401-2
Benets provided to full-time employees that are not provided to temporary
or part-time employees
P69401-3Parental leaveP69
GRI 403: Occupational Health and Safety 2018403-1Occupational health and safety management systemP77-78403-2Hazard identication, risk assessment, and incident investigationP78403-3Occupational health servicesP78403-4
Worker participation, consultation, and communication on occupationalhealth and safety
P78403-5Worker training on occupational health and safetyP76403-6Promotion of worker healthP78403-7
Prevention and mitigation of occupational health and safety impacts directlylinked by business relationships
P78403-8
Workers covered by an occupational health and safety managementsystem
P77-78403-9Work-related injuriesP73403-10Work-related ill healthNot occurredGRI 404: Training and Education 2016404-1Average hours of training per year per employeeP68404-2Programs for upgrading employee skills and transition assistance programsP68
110109
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Disclosure topic/Disclosure items
DisclosurePageGRI 404: Training and Education 2016
404-3
Percentage of employees receiving regular performance and career
development reviews.
P67GRI 405: Diversity and Equal Opportunity 2016405-1Diversity of governance bodies and employeesP65, P89405-2Ratio of basic salary and remuneration of women to menP67GRI 406: Non-discrimination 2016406-1Incidents of discrimination and corrective actions takenP65GRI 407: Freedom of Association and Collective Bargaining 2016407-1
Operations and suppliers in which the right to freedom of association andcollective bargaining may be at risk
N/AGRI 408: Child Labor 2016408-1Operations and suppliers at signicant risk for incidents of child laborN/AGRI 409: Forced or Compulsory Labor 2016
409-1
Operations and suppliers at signicant risk for incidents of forced orcompulsory labor
N/AGRI 413: Local Communities 2016413-1
Operations with local community engagement, impact assessments, anddevelopment programs
P42, P45-46413-2
Operations with signicant actual and potential negative impacts on localcommunities
P37GRI 414: Supplier Social Assessment 2016
414-1New suppliers that were screened using social criteriaP96-98414-2Negative social impacts in the supply chain and actions takenP96-98
GRI 416: Customer Health and Safety 2016
416-1
Assessment of the health and safety impacts of product and servicecategories
P52p-P54-56416-2
Incidents of non-compliance concerning the health and safety impacts ofproducts and services
Not occurredGRI 417: Marketing and Labeling 2016417-1Requirements for product and service information and labelingP54-56
Disclosure topic/Disclosure items
DisclosurePageGRI 417: Marketing and Labeling 2016417-2
Incidents of non-compliance concerning product and service information and
labeling
P54-56417-3Incidents of non-compliance concerning marketing communicationsNot occurredGRI 418: Customer Privacy 2016418-1
Substantiated complaints concerning breaches of customer privacy andlosses of customer data
Not occurred
112111
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Optional Questions (Please tick √ in the appropriate place)
1. As a stakeholder of Capital Eco-Pro Group, what is your relationship with us?
□ Shareholder □ Employee □ Supplier □ Customer □ Government □ Community □ Bank □ Academic institution □Other (Please speci
fy)
2. Is the information you are concerned about reected in this Report?
□ Yes □ Average □ No
3. What is your overall impression on this Report?
Readability (Easy to understand, beautiful design, attractive, and information available)
□ Good □ Average □ Poor
Credibility (true and credible)
□ Good □ Average □ Poor
Information integrity (giving consideration to positive and negative performance and meeting your information needs)
□ Good □ Average □ Poor
4.Do you prefer to receive future reports in paper or PDF forms?
□ In paper form □ In PDF form
5. Please leave your other comments or suggestions on this Report:
Beijing Capital Eco-Environment Protection Group Co., Ltd. MarketDevelopment CenterAddress: No. 21, Chegongzhuang Street, Xicheng District, BeijingZip code: 100044Tel: 010-84552266Email: brand@capitaleco-pro.com
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Dear readers,Thank you for reading our 2023 Environmental, Social and Governance Report. We sincerely welcome your valuable comments andsuggestions on this Report and our work, which will provide an important basis for us to promote sustainable development managementand practices continuously. You can give your feedback through email or fax the online survey or call us directly to share your valuablefeedback. Thank you!Looking forward to your reply.
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Capital Eco-Pro Group2023 Environmental, Social and Governance Report