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Address:No.5006, Aoti Middle Road, Hi-Tech Zone, JinanWebsite:www.sdecl.com.cnHotline:0531-89260052Fax:0531-89260050Mailbox:sdhs@sdecl.com.cn
Environmental, Socialand Governance (ESG)
Report
Tableof Contents
Corporate GovernanceParty Building Business Ethics
Governance First,Depending on ComplianceOperation to PromoteDevelopment
Environmental ProtectionUtilization of Resources"Three Wastes" Management
Lush Mountains andLucid waters, Protectingthe EcologicalBackground Color
Innovative R & DProduct QualitySafe Production
Innovation-driven, SafeProduction for QualityAssurance
Customer RightsInformation SecuritySupply Chain Management
Serving Customers, forMutual Benefit andCommon Progress
AppendixesIndex of Indicators 103Feedback Form 104Labor RelationsCareer DevelopmentWelfare and Care
Caring for Employeesand Making Togetherfor the Future
Local DevelopmentPublic Welfare Undertakings
Giving Back to Societyand Practicing PublicWelfare
About this Report 01Statement of Chairman 03Focus 05Responding to the"Carbon Peaking and Carbon Neutrality"Goals, and Building Low-Carbon Highways
About Shandong Hi-speedCompany Profile 11Business Areas 12Development Course 17Brand Building 19Corporate Culture 20Honors and Awards 21
ESG Management
ESG Governance System 23Sustainable Development Goals 26Communication with Stakeholders 27Analysis of Substantial Issues 28
Reporting ScopeThis report focuses on Shandong Hi-speed Company Limited and its subsidiaries and branches, etc. The scope of this report isconsistent with the scope of the Company's annual consolidated financial statements unless otherwise stated.Time RangeThe reporting period of this report covers from January 1, 2023 to December 31, 2023. For the purpose of making the report morecomparable and forward-looking, some of the content appropriately refers back to previous years or has forward-lookingdescriptions. This report is issued on an annual basis, consistent with the financial year.
Data Explanation
The data sources used in the report include the original data of the actual operation of the Company, public data of governmentdepartments, annual financial data, relevant internal statistical statements, third-party questionnaires, third-party evaluationinterviews, etc. The financial data in this report are expressed in RMB, and in case of any inconsistency with the financial report,the financial report shall prevail.
Compilation Basis
·Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 1 - Standardized Operation of Listed Companies (2023)·Chinese Academy of Social Sciences (CASS) Guidelines for Preparing Corporate Social Responsibility Reports in China (CASS-ESG 5.0)·Global Reporting Initiative Sustainability Reporting Standards (GRI Standards) (2021 Edition)·UN Sustainable Development Goals (SDGs)·State-owned Assets Supervision and Administration Commission of the State Council Guiding Opinions on the Fulfillment of SocialResponsibility by Central Enterprises
Assess to the ReportThis report is published in electronic form. You can download the electronic version of this report from the website of ShanghaiStock Exchange (www.sse.com.cn) or the official website of the Company (www.sdecl.com.cn) to obtain more information aboutthe Company. If you have questions and suggestions about this report, you can send an email to (sdhs@sdecl.com.cn) or call0531-89260052. This report is released in both Chinese and English versions. In case of any ambiguity or conflict between the twolanguage versions, the Chinese version shall prevail.
FeedbackIf you have any comments or suggestions on the sustainability of our company, please feel free to contact us as follows to helpus continuously improve our report.Securities Service Hotline: 0531-89260052 Investor Service Fax: 0531-89260050Company website: www.sdecl.com.cn Company mailbox: sdhs@sdecl.com.cnAddress: No. 5006, Mid Aoti Road, Ji'nan City, Shandong Province
Explanatory Notes
Shandong Hi-speed, the Company, WeShandong Hi-speed Group, the GroupHenan Development CompanyRoad & Bridge GroupQilu ExpresswayRail Transportation, Rail Transportation CompanyECON TechnologyInformation Group
TermsMeaningsShandong Hi-speed Company LimitedShandong Hi-speed Group Co., Ltd.Shandong Hi-speed Henan Development Co., Ltd.Shandong Hi-speed Road & Bridge Group Co., Ltd.Qilu Expressway Co., Ltd.Shandong High-speed Rail Transportation Group Co., Ltd. ECON Technology Co., Ltd.Shandong Hi-speed Information Group Co., Ltd.
About this Report
This report is the fourth Environmental, Social and Governance Report (ESG Report) and the thirteenth Social ResponsibilityReport issued by Shandong Hi-speed Company Limited (hereinafter referred to as "Shandong Hi-speed", "Company" or "We").Based on the principles of objectivity, standardization, transparency and comprehensiveness, this report discloses in detail theCompany's environmental, social and corporate governance practices and performance in 2023.
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Shandong Hi-speed Company LimitedEnvironmental, Social and Governance (ESG) Report 2023
Statement of Chairman
Here is another year and anther chapter of our life; we are still in the middle of our journey, also our dream. The year of 2023 wasan extraordinary year, which was the first year to fully implement the spirit of the 20th Party Congress. Under the guidance of XiJinping Thought on Socialism with Chinese Characteristics for a New Era, Shandong Hi-speed adhered to the corporate mission of"making the enterprise stronger with well-off staff and giving back to society", made progress through reform, embraced the futurethrough inheritance and constantly practiced its social responsibility.We are all the time strengthening governance and moving forward steadily. In 2023, starting from the strategic responsibility ofstate-owned enterprises, we actively responded to the national "The Belt and Road" initiative and expanded our scope of operation;we always upheld the leading role of Party building, took compliance operation as the cornerstone, comprehensively improved riskcontrol, maintained investor relations, and optimized ESG management system and structure to ensure high-quality governancewith sustainable development.Low-carbon highways represent green development. In 2023, we continued to integrate the concept of developing low-carbonhighways into our development strategy, vigorously promoted green technologies in road maintenance and engineeringconstruction, fully deployed the "paper-to-electronic" reform for invoices, continuously explored new energy utilization, promotedthe construction of "zero-carbon toll stations", and deepened the concept of energy-saving and low-carbon development in allaspects of highway operation.We always stick to the bottom line for work safely. In 2023, we believed that safety was of paramount importance, and it was ourresponsibility to ensure the quality of highway service. We applied digital management to every part of expressway operation,improving highway service level by digital means, assessing and making plans for various risks, and guaranteeing the safe andsmooth operation of highways.We provide quality service and protect customer rights and interests. In 2023, we put the protection of customers' rights andinterests at the top of our service, ensuring the safe travel of customers, comprehensively improving customer complaint responseprocedures, strictly protecting customers' information security, and making customer travel more convenient. We have beenworking hard to improve the customer experience.
The Company is employee-oriented, and we grow together with employees. In 2023, we insisted on establishing harmonious andstable labor relations, and provided a mature development system based on a sound remuneration and welfare system, thusensuring that employees enjoyed a relaxed and open communication environment, an open and transparent development channel,and a warm and harmonious workspace, so as to shape the Company into a warm and happy home.We devote ourselves to society. In 2023, we actively participated in public welfare activities, invested in the construction ofinfrastructure and living facilities for rural revitalization, helped the needy people, assisted the planting of agricultural products,organized volunteer service teams, escorted the travel safety of people, contributed to public welfare undertakings, and fullydemonstrated the Company's social responsibility.Going ahead, our heart remains the same. In 2024, under the corporate spirit of "Accountable, Aggressive and Advanced", we willbase ourselves on the past, strive to move forward, explore a broader path for future development, build a cornerstone with duties,and create a brighter future with reforms, making every effort to build the top brand in China's expressway industry.
Chairman:
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Shandong Hi-speed Company LimitedEnvironmental, Social and Governance (ESG) Report 2023
Responding to the "Carbon Peaking and Carbon Neutrality" Goals,and Building Low-Carbon Highways
In 2021, the State Council issued the Action Plan for Carbon Peaking by 2030, proposing that green and low-carbonactions for transportation should be taken from three aspects: promoting low-carbon transformation of transportationequipment, constructing green and efficient transportation system, and speeding up construction of greentransportation infrastructure. In the same year, the 14th Five-Year Plan for the Development of Modern ComprehensiveTransportation System further proposed that energy conservation and carbon reduction in the highway field should bepushed from four aspects: structure adjustment, cleanliness, low energy consumption, and green.Under this background, Shandong Hi-speed has evaluated the current situation of carbon emission in the industry whilefully taking into account the actual internal and external conditions of the industry and the Company, made duecontribution to the construction of ecological civilization with practical moves, and promoted the harmoniouscoexistence between man and nature.Green EngineeringShandong Hi-speed integrates the low-carbon concept and environmental protection consciousness into the construction ofexpressway, rail transit and engineering construction and puts them into practice.
In terms of green maintenance, the Company issued 5 standardization manuals including the Technical Guide for ExpresswayGreening Management and Protection, comprehensively promoted new technologies, new processes, new materials and intelligentmaintenance equipment for green pavement maintenance, and created a maintenance quality project of "safety, comfort, greenharmony and public recognition".
FocusEmpower the brand of "Shangao · Xing" and be a listedcompany with "sense of responsibility".
- The ESG Vision of Shandong Hi-speed
Before Road ConstructionDuring Road ConstructionThe Company adheres to the system of "threesimultaneous actions" for environmental protection, andprepares environmental impact reports for variousprojects undertaken for construction. In those reports,we analyze the ecological status of the constructionsite, evaluate the possible impacts and risks caused bythe construction, avoid wetlands, wildlife reserves andother areas to minimize the environmental impact onthe local area.
The Company regularly inspects the construction,adopts automatic spraying system and other measuresto suppress dust, and properly handles various wastesgenerated during construction according to relevantregulations, especially hazardous wastes. Afterconstruction, we will restore vegetation in time, makefull use of earth for subgrade backfilling, and effectivelyreduce occupation of land resources.
Case 1Application of Environmental Protection Technology in Engineering Construction
In the construction project of Qihe-Jinan Section of Beijing-Taibei Expressway, we used pile heads to break down wastematerials and construction solid wastes, so as to construct access roads and backfill and compact the surface, realizing thereuse of about 110,000 m3 of waste materials.In the construction of the steel box girder of the main bridge of the Yellow River Bridge, we adopt the block unit on-siteassembly technology to replace the conventional plate unit on-site processing technology, reducing the land acquisitionarea of 45 mu in the Yellow River beach, and effectively protecting the ecological environment of the Yellow River Basin.
Case 2Promotion of Electric Locomotives in Rail TransportationIn 2023, Rail Transportation Company, a subsidiary,completed the construction of the national railwayinterface and installation and commissioning of supportingequipment and facilities of Dalailong Railway, promotedthe smooth direct traffic of the first electric locomotive ofDelong-Longkou-Yantai section, and put 6 electriclocomotives into normal operation, which can reducecarbon emissions by 6,000 tons per year compared withthe traditional rail locomotives.
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Shandong Hi-speed Company LimitedEnvironmental, Social and Governance (ESG) Report 2023
Among the maintenance technologies, the Company treats pavement diseases by super-surface treatment and thermalregeneration, effectively reduces carbon emissions in the whole life cycle of roads, and promotes and applies new green andlow-carbon technologies such as SMA-8 high-toughness ultra-thin overlay and function-recovery ultra-thin seal layer.
In 2023, the Company achieved 100% of excellent maintenance projects, 100% of recycling rate of asphalt pavement materials forspecial maintenance projects, 100% of recycling rate of waste pavement materials for expressways, and more than 95% ofrecycling rate.
Function-recovery ultra-thin sealing layer technology normal temperature construction:
No dust pollution, less material consumption, greatly reducing aggregate waste.
SMA-8 High-toughness ultra-thin overlay:
While ensuring the anti-sliding performance of the surface layer, it prevents the water damage of the lower asphaltconcrete caused by the underwater seepage of the road surface, and delays the disease development of reflectioncracks.
Digital Emission Reduction
Digital transformation is one of the effective ways to reduce carbon emission. Shandong Hi-speed issued the Implementation Plan forDigital Upgrading for digital construction, which guided the digital upgrading of monitoring, patrol, ETC and other businesses inexpressway operation. During operation, we took a number of digital transformation measures.
Among them, the promotion of toll electronic invoices, i.e. "paper-to-electronic" work, wasfully upgraded in 18 expressway operation units in the province on April 19, 2023, realizinga 25% increase in single vehicle traffic efficiency, shortening the waiting time for vehiclesto pass through lanes by 4-6s, and greatly reducing paper invoice printing amount andprinting consumables. It is estimated that carbon dioxide emissions can be reduced byabout 2,600 tons in the whole year, greatly reducing costs and carbon emissions. It doesgood to the construction of low-carbon highways.
· Improve the intelligent infrastructure of "AI+ fixed video" and "AI+ on-board video" to reduce or replace manual andelectronic road inspections;· Improve the construction of intelligent terminal equipment such as intelligent card issuance and intelligent charging;· Establish a digital office system covering the daily management of toll stations;· Continuously improve the proportion of ETC users and ETC lane transaction success rate of the Company's expresswaytoll collection;· Improve the construction of digital trading platforms such as "Go First, Pay Later" and electronic invoices, and improvethe utilization rate of electronic payment;· Establish and improve the Company's energy measurement system.
Electronic Upgrading of Toll Invoices
realizing a25%increase in single vehicle
traffic efficiency
shortening the waitingtime for vehicles to pass
through lanes by4-6s
It is estimated thatcarbon dioxide emissionscan be reduced by about
2,600 tonsin the whole year
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Shandong Hi-speed Company LimitedEnvironmental, Social and Governance (ESG) Report 2023
Exploring Clean EnergyIn terms of the utilization of clean energy, Shandong Hi-speed focuses on the direction of photovoltaic energy, and strives todevelop a new energy model of "highway + photovoltaic".
In order to reduce the carbon emission of toll station operation, the Company plans to build the first "zero-carbon toll station" inChina at Gushan Toll Station (West Side) of G3 Beijing-Taibei Expressway and Zhangqiu West Toll Station of G20 Qingdao-YinchuanExpressway. It plans to fully deploy new energy solutions. From power generation to electricity consumption to energy storage,photovoltaic green electricity will be used throughout the power cycle to realize "self-generated electricity for self-use, surpluselectricity to grid". Combined with the technology of digital emission reduction, the first comprehensive demonstration toll stationof "smart cloud control + zero carbon" in China is built by using digital twin and cloud control platform technology.
Based on the analysis of the current electricity consumption ofGushan Toll Station (West Side) and Zhangqiu West TollStation respectively, the Company deployed additionalphotovoltaic equipment, energy storage equipment andcharging piles required for photovoltaic transformation at thetwo toll stations. For the transformation of photovoltaicequipment, the Company entrusted a third party to preparethe Design Scheme for Gushan Toll Station DistributedPhotovoltaic Power Generation Project of G3 Beijing-TaibeiExpressway according to the actual geographical location andGushan Toll Station’s building conditions, and planned toinstall photovoltaic shed tiles in the toll station area. It isestimated that in the 25-year economic life period, the annualemission of greenhouse gas CO2 can be reduced by about
193.52t. The specific construction plan of Zhangqiu West Toll
Station is still in progress.
CaseQilu Expressway Landed the Distributed Photovoltaic Project
In November 2023, Qilu Expressway made full use of idle space resources such as ramp circle, slope and toll station ofexpressway in some highway areas of Liaocheng, arranged distributed photovoltaic projects along Dezhou-ShangraoExpressway and Shenxian-Nanle Expressway, successfully connected to the grid and put into operation, with a total installedcapacity of 8.2MW.
Photovoltaic Project of Gushan Toll Station (West Side)
New energy solutions:
·Photovoltaic power generation system ·Energy storage system·Integrated energy management systems ·New energy vehicle charging station project, etc.
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Shandong Hi-speed Company LimitedEnvironmental, Social and Governance (ESG) Report 2023
Company Profile
Total mileage of road andbridge under operation and
managementkilometers billion
About Shandong Hi-speed
The Company's revenue was RMB
265.46
employees
10,805
2,864
Business Areas
The main business scope of Shandong Hi-speed is divided into road and bridge operation segment and Capital OperationSegment.Shandong Hi-speed Company Limited ("Shandong Hi-speed", abbreviated as "SDHS", stock code 600350) was established in 1999and controlled by Shandong Hi-speed Group Co., Ltd.; it was listed on Shanghai Stock Exchange in March 2002, headquarteredat No. 5006, Mid Aoti Road, Ji'nan City, Shandong Province. The Company is mainly engaged in investment and operation oftransportation infrastructure, as well as equity investment in upstream and downstream related industries of expressway industrychain. In 2023, the Company's operating revenue was RMB 26.546 billion, with 10,805 employees and a total mileage of 2,864kilometers of roads and bridges under operation and management. It is a first-class road and bridge operation service provider inChina.
14 Headquarters Functional Departments
Road and Bridge Operation Segment3 Directly Affiliated Units18 Operation Management Centers7 Direct Subsidiaries3 Regional Development Companies7 Direct Subsidiaries7 Major Stock-Participating CompaniesCapital Operation Segment
Company Functional Structure Distribution
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Shandong Hi-speed Company LimitedEnvironmental, Social and Governance (ESG) Report 2023
Road and bridge operation segment is divided into general traffic and engineering construction.Road and Bridge Operation - General TrafficToll roads and bridges are the core business of the Company.In 2023, the Company operated and managed a total road and bridge mileage of 2,864 km, of which 1,555 km wasowned by the Company and 1,309 km was entrusted by Shandong Hi-speed Group. The holding company ShandongHigh-speed Rail Transportation Group Co., Ltd. operated 390 kilometers of local railways and managed 147 kilometers ofspecial railway lines and connecting lines.
Undertaking highway reconstruction and expansion projects is a part of our highway business. The projects undertaken bythe Company mainly include: Reconstruction and Expansion Project of Ji'nan-Qingdao Expressway, Reconstruction andExpansion Project of Dezhou-Qihe Section of Beijing-Taibei Expressway, Reconstruction and Expansion Project ofJi'nan-Tai'an Section of Beijing-Taibei Expressway, Reconstruction and Expansion Project of Qihe-Jinan Section ofBeijing-Taibei Expressway, Reconstruction and Expansion Project of Ji'nan-Heze Section of Ji'nan-Guangzhou Expressway.
Company Owned Highway AssetsCompany Entrusted AssetsRoad and Bridge Operation-Engineering Construction
Owned Road and Bridge AssetsJi'nan-Qingdao Expressway (ShandongSection of Qingdao-Yinchuan Expressway)Qihe-Ji'nan Section of Beijing-TaibeiExpresswayJi'nan-Tai'an Section of Beijing-TaibeiExpresswayWeifang-Laiyang ExpresswayG104 Taian-Qufu Class I HighwayJiyuan-Jincheng (Provincial Boundary)Section of Erenhot-Guangzhou ExpresswayHubei Wuhan-Jingmen ExpresswayYinjialin-Wangguantun Section ofJi'nan-Guangzhou ExpresswayLintun Village-Provincial Boundary Sectionof Shenxian-Nanle (Shandong-HenanBoundary) ExpresswayLijin Yellow River Highway Bridge
Dezhou-Qihe Section of Beijing-TaibeiExpresswayJi'nan-Qingdao Connecting Line ofBeijing-Taibei ExpresswayBeijing-Shanghai Highway (Auxiliary Line)Ji'nan-Laiwu ExpresswayWeihai-Rushan ExpresswayHenan Xuchang-Yuzhou ExpresswayHunan Hengyang-Shaoyang ExpresswaySichuan Chengdu-Chongqing Ring RoadHejiang (Chongqing-Sichuan Boundary) toNaxi Section ExpresswayLiaocheng-Fanxian County(Shandong-Henan Boundary) Section ofDezhou-Shangrao ExpresswayJi'nan Second Yellow River Highway Bridge
Road and Bridge Operation Segment Management Chart
Company Managed Road Network Map (within Shandong Province)
Road and Bridge Operation Segment
Direct SubsidiariesOperation Management Centers
Directly Affiliated Units
Engineering Management CenterOperation Dispatch CenterFinancial Sharing Center
Dezhou Operation Management CenterZibo Operation Management CenterShandong High-speed Rail Transportation Group Co., Ltd.Qilu Expressway Co., Ltd.Hunan Hengshao Expressway Co., Ltd.Shandong Lijin Yellow River Highway Bridge Co., Ltd.Hubei Wujing Expressway Development Co., Ltd.Luzhou Southeast Expressway Development Co., Ltd.Shandong Hi-speed Information Group Co., Ltd.Weifang Operation Management CenterQingdao Operation Management CenterWeilai Operation Management CenterYantai Operation Management CenterWeihai Operation Management CenterBeijing-Shanghai Ji'nan Operation Management CenterTaiqu Road Operation Management CenterTaidong Operation Management CenterXiajin Operation Management CenterBeijing-Taibei Ji'nan Operation Management CenterTaian Operation Management CenterZaozhuang Operation Management CenterLinyi Operation Management CenterHeze Operation Management CenterJi'nan-Qingdao Ji'nan Operation Management CenterWeiri Operation Management Center
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Shandong Hi-speed Company LimitedEnvironmental, Social and Governance (ESG) Report 2023
The Capital Operation Segment is a new path for long-term sustainable development explored by the Company outside its mainbusiness of expressway.
Case
Regional Collaborative Exchange Meeting of Units Stationed in Henan toStrengthen the Regional Road Network in Henan.In February 2023, Henan Development Company, awholly-owned subsidiary of Shandong Hi-speed, held a regionalcollaborative exchange meeting of units stationed in Henan,attended by 7 brother units stationed in Henan including theRoad & Bridge Group, and exchanged views on collaborativesharing of internal resources.During the meeting, all units conducted in-depth discussionsaround the regional collaborative development model, andreached important consensus on deepening cooperation andexchange of the Company's business segments, accelerating theconstruction of the Company's regional road network in Henan,jointly building the "One Network" of Shandong Hi-speed inHenan region, and promoting the long-term interfacing of allunits, which played a role in accelerating the construction of theCompany's business network.
Case
Sub-Forum of "New Development of Capital Market under the New Situation"to Explore Capital OperationIn March 2023, the sub-forum of "New Development of CapitalMarket under the New Situation" of China Transportation IndustryEconomic Annual Conference and 2023 Industrial Innovation andDevelopment Forum was held in Ji'nan, attended by leaders andexperts from all walks of life such as the Company and the VicePresident of China Association of Listed Companies.On the forum, the Company leaders showed a prospect on howShandong Hi-speed would open up a new situation for the Com-pany's development under the background of capital marketreform. As a state-owned listed company, the Company willcarry the mission and bear the responsibility, strengthen theadvantages of the main industry, deeply explore the capitaloperation, industrial transformation and upgrading, reform andinnovation drive, and create a new situation of "innovation, open-ness, synergism and low carbon" development with all-roundpower.
Capital Operation
Capital Operation Segment Management Chart
Capital Operation SegmentRegional Development
CompaniesShandong Hi-speed Henan Development Co., Ltd.Shandong Hi-speed Hunan Development Co., Ltd.Shandong Hi-speed (Shenzhen) Investment Co., Ltd.ECON Technology Co., Ltd.
Shandong Hi-speed Investment Development Co., Ltd.Shandong Hi-speed Sulianyun Technology Co., Ltd.Shangao Yunchuang (Shandong) Commercial Factoring Co., Ltd.Shandong Hi-speed Industrial Development Co., Ltd.Shandong Hi-speed Qilu Construction TransportationManagement Service Co., Ltd.Shandong Hi-speed Changying Equity Investment ManagementCo., Ltd.Guangdong Expressway Development Co., Ltd.Weihai City Commercial Bank Co., Ltd.Dongxing Securities Co., Ltd.Fulongma Group Co., Ltd.Shandong Hi-speed Engineering Project Management Co., Ltd.Shandong Hi-speed Logistics Group Co., Ltd.Shandong Expressway Maintenance Group Co., Ltd.
As the second largest business segment of the Company, the Capital Operation Segment has developed well. In recent years,the profit contribution of the Capital Operation Segment to the profit of the Company has gradually appeared.In terms of equity investment, firstly, the Company actively expands the scale of expressway-based main business assetsthrough horizontal merger and acquisition of expressway-based main business projects and establishes its own industryposition. In 2021, the Company completed the acquisition of 38.93% equity of Qilu Expressway Co., Ltd.; secondly, theCompany takes the environmental protection industry and related financial investment in the field as the new profit growthpoint. In 2022, Yunchuang Commercial Factoring Company was established to develop the supply chain industry; thirdly, ithas participated by shareholding in four listed companies: Weihai Commercial Bank, Dongxing Securities, LongmaEnvironmental Sanitation and Guangdong Expressway A, set up Changying Fund Management Company, and built adiversified investment and financing platform integrating securities, banks, funds and factoring companies.In terms of value investment, the Company actively seeks for "short-term and quick-return" and risk-controllable financialinvestment projects by leveraging the cash flow advantages of the expressway industry, and achieves the investment goalof "making up for the long-term return with the short-term return" by obtaining short-term financial investment returns, soas to make up for the shortcoming of long investment payback period in the expressway industry.
Major Stock-Participating
CompaniesDirect Subsidiaries
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Shandong Hi-speed Company LimitedEnvironmental, Social and Governance (ESG) Report 2023
Development CourseIn 1999, Shandong Hi-speed Group Co., Ltd. and China Merchants Expressway Network & Technology Holdings Co., Ltd. jointlyestablished Shandong Hi-speed Company Limited. For more than 20 years, Shandong Hi-speed has continuously explored newdevelopment paths, devoted itself to innovation, managed the continuous growth of road and bridge mileages, and graduallymatured investment mode in capital operation, continuously striding towards a more modern future.Revitalizing Shandong, Wonderful Start (1989-1999)1989 The construction of Jinan-Qingdao Expressway, the first expressway in Shandong Province, began.
2014 Capital OperationSubscribed 317 million additional shares of Weihai Commercial Bank; successfully issued 2 billion corporate bonds.2015 Road and Bridge OperationAcquired 65% equity of Lijin Bridge Company; constructed 233 ETC lanes and automatic card issuing lanes to realize anunattended mode at toll station entrance.
Working Hard and Never Stop（2016-Present）
2016 Road and Bridge OperationThe construction of Jinan-Qingdao Expressway reconstruction and expansion project began.Capital OperationPromoted the establishment of the first RMB 1 billion Changying Fund as the Company's capital operation platform; bid for 120million additional shares of Dongxing Securities.
2017 Road and Bridge OperationThe Headquarters set up an operation division to directly manage 127 grass-roots units; realized the "full payment" lane aheadof schedule.Capital OperationInvested RMB 400 million to subscribe for additional shares of Longma Environmental Sanitation.
2018 Road and Bridge OperationAcquired 60% equity of Hubei Wujing Company and 90% equity of Jijin Company, increased operation mileage by 205 km,achieving a total operation mileage of 2,300 km; cancelled the toll station at the provincial boundary between Shandong andJiangsu, realized non-stop toll collection; officially transferred Ji'nan Yellow River Bridge, Pingyin Yellow River Bridge and BinzhouYellow River Bridge to the government.
2019 Road and Bridge OperationThe newly expanded two-way eight-lane Jinan-Qingdao Expressway was completed 15 months ahead of schedule; acquired 80%equity of Sichuan Luyu Expressway Company.
2020 Road and Bridge OperationCompleted the Reconstruction and Expansion Project of Beijing-Taibei Expressway ahead of schedule; the Reconstruction andExpansion Project of Ji'nan-Qingdao Expressway won many awards such as National Quality Award.Capital OperationAcquired 51 % equity of Shandong High-speed Rail Transportation Group Co., Ltd. and 9.68% equity of Guangdong Expressway.
2021 Road and Bridge OperationThe reconstruction and expansion project of Dezhou-Qihe Section of Beijing-Taibei Expressway was completed 18 months aheadof schedule.Capital OperationAcquired 38.93% controlling stake in Qilu Expressway, realizing the first "A-Shares Company Controlling H-Shares Company" inthe industry.
2022 Road and Bridge OperationThe reconstruction and expansion project of Ji'nan-Tai'an Section of Beijing-Taibei Expressway was completed, and thereconstruction and expansion project of Ji'nan-Heze Section of Ji'nan-Guangzhou Expressway was commenced.
Capital OperationYantai Hesheng Real Estate Development Co., Ltd. completed equity transfer, symbolizing the successful divesting of real estatebusiness.
2023 Road and Bridge OperationFully completed the toll invoice "paper-to-electronic" work; intelligent scientific and technological achievements were recognizedas international advanced and domestic leading.Capital OperationAcquired 65% equity of Shandong Hi-Speed Information Group Co., Ltd.
Forging Ahead Towards Blue Chip (1999-2009)1999 Shandong Hi-speed Company Limited was established and controlled by Shandong Hi-speed GroupCo., Ltd.2002Shandong Hi-speed was listed on the Shanghai Stock Exchange and issued 505 million A-Shares for the first time.2008 Road and Bridge OperationAcquired Deqi North Section of Beijing-Fuzhou Expressway, 100% equity of Shandong Hi-speed Group Xuyu Highway Co., Ltd.and 49% equity of Shandong Hi-speed Engineering Consulting Co., Ltd.
Pursuit of Excellence, Far-reaching and Wide Integration (2009-2016)2010 Initiate major asset reorganization projects.2011 Road and Bridge OperationAcquired 7.5 billion high-quality road and bridge assets under the Group; entrusted to manage 500 km of road assets, with a totalmileage of 1,452 km of roads under management.2012 Road and Bridge OperationAcquired 70% equity of Hunan Hengshao Expressway; entrusted to manage assets such as S38 Zaolin Expressway and S11 YanhaiExpressway, with a total mileage of 1,628 km of roads under management.2013 Road and bridge operationEntrusted to manage Beilai Highway, Lijin Yellow River Bridge, etc., with a total mileage of 1,875 km of roads under management.
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Shandong Hi-speed Company LimitedEnvironmental, Social and Governance (ESG) Report 2023
Shan / Mountain
Gao / High
Corporate MissionMaking the enterprise stronger with well-off staffand giving back to society
High TalentManagement ConceptTalent ConceptIntegrity ConceptHigh PerformanceInnovation ConceptCooperation ConceptTeam ConceptLearning ConceptHigh QualityQuality ConceptSafety ConceptService Concept
Corporate VisionDetermined to be a century-old enterprise and buildthe first brand in China's expressway industryCore ValuesFar-reaching expressway, smooth and diligent travel
Corporate Spirit·Accountable·Aggressive ·Advanced
Brand Building
On December 18, 2023, the service brand launchconference of "Shangao·Xing" was held in Ji'nan.Shandong Hi-speed looks back on the past andlooks forward to the future, based on past experi-ence and combined with the developmentblueprint, comprehensively summarized thequality and pursuit of Shandong Hi-speed peopleand established the service brand "Shangao·Xing".
Corporate Culture
During more than 20 years' operation, Shandong Hi-speed has gradually formed its corporate mission, vision and core values inline with the Company's development laws, and formed a sub-culture of Shandong Hi-speed with unique Shandong culturalcharacteristics and the company features. Shandong Hi-speed is not only symbolizing the Company's name, but also theCompany's pursuit. Based on it, the Company has developed a variety of corporate cultures such as its vision and mission.
The service brand "Shangao · Xing" reflects the Company's mission of "creating a road ofhappiness" with the responsibility of "shan"; practicing the value concept of "far-reachingexpressway, smooth and diligent travel" with the ambition of "gao"; and demonstrating thespiritual characteristics of "courage to take responsibility and dare to be the first" with theattitude of "xing". In the future, the Company will continuously meet the public's demandfor beautiful travel and green travel, and unswervingly build and share the way of travel,walking with the masses, the world and the beautiful things.
"Shangao · Xing" is a mission. We continue to work hard in the field of expressway as our main business. Theyear-on-year growth in mileage under management, the technological leadership of intelligent high-speed, the rapidimprovement in access efficiency, and the continuous exploration of low-carbon highways fully showing ourpersistence in our initial intention. We contribute to the beautiful travel of the public, and lead the development of thetransportation industry."Shangao · Xing" is a belief. Based on expressway operation as our main business, we explore the long-termsustainable development path of capital operation, expand the scale of main business assets, assist transformationand upgrading, continuously extend the industrial chain, and create a high-quality development pattern in the newera with a multi-field and multi-format development network."Shangao · Xing" is a spirit. We bear the social responsibility as a state-owned enterprise, explore the "Shandong Path"of energy integration and green development, construct green projects, develop digital carbon reductiontechnologies, promote the use of clean energy such as photovoltaic power, and make efforts at multiple points tothoroughly implement the concept of low-carbon development."Shangao · Xing" is a pursuit. We have always adhered to the leadership of the Party, never forgotten our originalmission, worked hard, forged ahead, started a new journey of high-quality development, and strived to be the"pioneer" in the practice of Chinese-style modernization in Shandong and the construction of a strong socialistprovince in the new era.
Act with Original Intention, with Beauty in Heart
Act with Quality, Developing Efficiently
Act with Elegance, Taking the Lead with Responsibility
Act with Pursuit, Striving for Excellence
ShandongHi-speed Culture
Firm and steady as a mountain, tough and responsible as a heaver.High starting point in new stage, high pursuit in new period, highquality in new development.
2019
Shandong Hi-speed Company LimitedEnvironmental, Social and Governance (ESG) Report 2023
Two second prizes and one third prize of "2023 Science and Technology Award of China Highway and Transportation Society"
Social Responsibility
Honors and AwardsSince its establishment, Shandong Hi-speed has won continuous reputation in many aspects. In 2023, the Company won manyawards in corporate governance, social responsibility, engineering construction, scientific and technological innovation, etc.
Selected into the "2023 Top 100 Listed Companies in China"
The second prize of the 19th"Transportation Enterprise ManagementModernization Innovation Achievements".
Advanced Unit of Staff andVocational Education in
Shandong Province
Team First Prize, Individual First Prize and Excellent
Organization Award in Shandong ExpresswayObstacle-clearing & Rescue Skills Competition
National Transportation Industry Management
Innovation Demonstration Unit
Science and Technology Award of China Communications and Transportation of AssociationNew Fortune "Best Public Company"
2022 Transportation Corporate SocialResponsibility (ESG) Report Rating
-Excellent Report
2023 ESG Top 100 Award forListed Companies in China
The 18th "Gold Round Table Award"for the Board of Directors of ListedCompanies in China - SpecialContribution Award for Corporate
Governance2022 P5W Investor RelationsGold Award - "Best NewMedia Operation Award"
2022 Shandong Enterprise SocialResponsibility List - MostInfluential Enterprise
Corporate gGovernance
Engineering ConstructionThe Reconstruction and Expansion Project of Ji'nan-Qingdao Expressway was selected into "Zhan Tianyou Award of the 12thFirst Batch of China Civil Engineering" and "Luban Award of China Construction Engineering (National High Quality Project)2022-2023"The Reconstruction and Expansion Project of Dezhou (Shandong-Hebei Boundary)- Qihe Section of Beijing-TaibeiExpressway won the "2022-2023 (Second Batch) Highway Traffic Quality Engineering Award"
Scientific and Technological Innovation
The National Second Prize for "Customer-centric Digital Operation Service Management of Expressway Enterprises"
Management Innovation
Employee Management
2221
Shandong Hi-speed Company LimitedEnvironmental, Social and Governance (ESG) Report 2023
- ESG Strategic Goal of Shandong Hi-speed
ESG Governance System
Shandong Hi-speed always puts green, low-carbon and high-quality development in an important position, strives tointegrate ESG into enterprise strategy, governance, reform and development and daily operation. We regard ESG as animportant content to improve the level of enterprise governance according to law, improve the quality and benefit ofdevelopment and improve the competitiveness of enterprises, constantly improves the overall responsibilityperformance ability and awareness of enterprises, and promotes sustainable development.
In order to implement the ESG management concept andintegrate it into the operation and management of the Company,Shandong Hi-speed adheres to the ESG goal of "becoming aleader in social responsibility in the industry", establishes the"Strategic Development and ESG Management Committee"under the Board of Directors, and prepares the Environmental,Social and Governance (ESG) Management Measures and the Working Rulesof the Strategic Development and ESG Management Committee of theBoard of Directors, integrating ESG management with thedecision-making, operation and development of the Company,and continuously creating comprehensive value.
ESG ManagementBecoming an ESG benchmark enterprise in the industry underthe leading by sustainable development.
Corporate ESG Management Structure
Board of Directors
Board of Directors Strategic Development
and ESG Management Committee
Strategic Development and ESGManagement Committee Working Group
ESG Working Group
Formulate ESG policies, strategies, systems, indicator systems, etc.Review ESG-related important matters of the Company and determine majorESG risk management plansReview the Company's annual ESG report and confirm ESG work completionParticipate in ESG-related training and communication activities
Study and advise on ESG plans and policiesReview ESG reports of the Company and submit them to the Board of Directorsfor considerationGuide and supervise ESG working group to carry out ESG-related risk studyOverall ESG internal work management, including formulating ESG index system,annual work plan, ESG objectives, assessment and incentive scheme, riskmanagement, etc.Overall ESG external work management, including annual ESG report disclosure,related rating questionnaire processing, external training and meetings, etc.
Break down ESG objectives and annual work plans into annual ESG work plansof corresponding departments and subsidiaries, carry out ESG special projects,and sort out and report the implementation of ESG objectivesAnnual ESG information collection, providing basic materials, preparing ESGreports, responding to ESG capital market-related research and ratingquestionnairesOrganize and participate in internal and external ESG related meetings andtraining.
Board of Directors
Board of DirectorsStrategic Development and
ESG Management
Committee
Strategic Development and
ESG ManagementCommittee Working Group
ESG Working Group
ESG Management
Hierarchy
Main Functions
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Shandong Hi-speed Company LimitedEnvironmental, Social and Governance (ESG) Report 2023
ESG Management PracticesIn order to promote the effective implementation of the Company's internal ESG management strategy, Shandong Hi-speed hasformulated the ESG Work Plan, defined the ESG action process, and actively taken ESG management measures in variousdimensions.
In order to effectively prevent and control various potential risks that may hinder the sustainable development of the Company, asled by the Strategic Development and ESG Management Committee of the Board of Directors, we has comprehensively carriedout research, analysis, identification, evaluation and response on ESG-related risk matters of the Company, established ESG riskidentification and management system, regularly identified ESG-related risks and judged the degree of ESG risks, formulated ESGrisk management and control action plans, integrated ESG risk management and control requirements into overall riskmanagement, and ensured the stable development of various businesses of the Company.
On March 9, 2023, Shandong Hi-speed was awarded thehonorary title of "Most Influential Enterprise" in the "Evolution2023" Qilu Evening News - Qilu Yidian Annual Ceremony -Responsibility Shandong · 2022 Shandong Enterprise SocialResponsibility List, which injected impetus into the Company'scontinuous efforts in ESG management.
Actively organize and participate in internal and external ESG-related meetings and training to enhance ESGmanagement awareness and ability of each segment;Establish ESG assessment and incentive mechanism scheme;Identify, formulate and publicly disclose ESG-related objectives through stakeholder communication and incombination with the Company's operation and development;Formulate ESG indicator system, make ESG annual work plan based on indicator system, and comprehensivelyimprove ESG management structure.
ESG Workflows
ESG Management Measures
Sustainable Development Goals
Shandong Hi-speed has actively responded to the "Carbon Peaking and Carbon Neutrality" development concept, built the ESGbrand image of the Company, improved the ESG strategy system. We closely integrated the Company's development with theUnited Nations 2030 Sustainable Development Goals (SDGs), established the overall ESG management concepty, formed theoverall ESG governance framework, and formulated ESG development goals for each development level of the Company,so as tocomprehensively assisted the ESG development.ManagementDimensions
ManagementConcept
SDGs
ESG Action Preparation StageESG Significant IssueIdentification Update
ESG Goal Setting
ESG Working GroupImplementation
ESG Action SubjectImplementationESG Action Implementation Stage
ESG Policy Support
SudyAnalysisIdentificationAssessmentAddressing
CorporateGovernance(G)Environmental
Protection
(E)
Industrial
Value
(S)
Standardized "Three Meetings" Cooperation,
Integrity & Business Ethics,Reasonable Information Disclosure,Risk Management,Clean Party BuildingStandardize Environmental Management,Respond to Carbon Peaking and Carbon Neutrality
Planning,Strengthen Energy Management,
Strictly Control Emissions
Enhance Work Safety,Adhere to Innovation Drive,Protect Customer Rights and Interests,
Strive for Quality Improvement
SocialResponsibility
(S)
Emphasize on Creating Social Value,Actively Assume Social Responsibility,
Give Back to Society
EmployeeBenefits
(S)
Promote Employee Development,Create Shared Value with Employees
ESG Risk Identification and Management Process
2625
Shandong Hi-speed Company LimitedEnvironmental, Social and Governance (ESG) Report 2023
Analysis of Substantial IssuesThe Company always has an eye on ESG rating indicators in the capital market, takes into account national policies, industry trendsand corporate strategies, analyzes its own sustainable development challenges, establishes a substantial issue identificationmechanism, and determines annual important issues through analysis and research on internal and external stakeholders.
We has conducted questionnaire surveys on stakeholders, identified and assessed the importance of ESG substantial issues, andcollected more than 100 valid questionnaires covering investors, employees, communities and other stakeholders.After analyzing and studying the questionnaire results, we sorted out the ESG important issues, and compared with the issuesconcerned by the same industry and the Company, we formed a substantial issue matrix from two dimensions, i.e., "importanceto the Company" and "importance to stakeholders" according to the importance of the issues.
Importance to stakeholders
Communication with StakeholdersThe Company adheres to the concept of environmental protection, undertakes its due social responsibility, continuously improvesthe comprehensive utilization efficiency of resources, and promotes the sustainable development of enterprises and theenvironment. We cares for the rights and interests of stakeholders such as investors, customers, employees and partners, andunderstands and responds to ESG issues of major concern through various communication channels.
StakeholdersExpectations and DemandsResponseCompliance ManagementPay Taxes according to LawEnvironmental ProtectionPromote Local Development
Abide by Laws and RegulationsPay Taxes on our own InitiativeGreen ManagementLocalized Employment
Investors
Importance to the CompanyHighVery high
Very high
"Three Wastes" managementAddressing climate changeStaff training and development
Contribution to communitySupply chain system
Environmental managementBiological diversityPrivacy protectionR&D and innovation
Water resources managementEnergy managementOther pollution control
Occupational healthRoad safetyRoad service quality
Labor relations managementBusiness ethics
Safe TravelProtect the Rights and Interests of CustomersImprove Customer Satisfaction
Implement Work SafetyAdhere to Integrity ManagementUser Feedback Management
Customers
Build Career Development pathsHigh Salary and BenefitsSafeguard Occupational HealthProtect the Rights and Interests of Employees
Improve the Internal Management SystemEmployee Work and Life SecurityStrengthen Occupational HealthEmployee Communication Feedback MechanismImprove the Community EnvironmentOrganize Volunteer Activities
Strengthen Community InteractionOrganize Public Welfare ActivitiesEnergy Conservation and Emission ReductionProtect the Ecology
Energy ConservationBiodiversity ConservationSupply Chain ManagementMutual Benefit and Win-WinCommon Development
Create a Responsible Supply ChainStick to Business EthicsCooperation and ExchangesImprove Corporate GovernanceTimely Information DisclosureCompany's Sustained Profitability
Improve Internal Control LevelRegular Information DisclosureSafeguard Shareholders' Interests
Employees
CommunityEnvironment
Suppliers
Government
Substantial issue analysis process
Substantial issuesQuestionnaire survey on internal and external stakeholdersResearch on expresswayindustry andbenchmarking analysis
Analysis of basic situationof company operation
Industry best practice
benchmarking
External public opinion
analysis
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Shandong Hi-speed Company LimitedEnvironmental, Social and Governance (ESG) Report 2023
Corporate Governance 31Party Building 36Business Ethics 39
Scientific, regulatedpeople-oriented, and efficient.
——Management Tenet of Shandong Hi-speed
Governance FirstDepending onCompliance Operation toPromote Development
Key performance
Shandong Hi-speed Governance Framework
Corporate Governance
Governance Framework
Shandong Hi-speed strictly abides by the requirements of relevant laws and regulations such as the Company Law of the People'sRepublic of China, the Securities Law of the People's Republic of China and Governance Code for Listed Companies, and has established a corporategovernance framework composed of Shareholders' General Meeting, Board of Directors and its special committees, Board ofSupervisors and the senior officers with complete responsibilities and mutual checks and balances.
In the management of the Board ofDirectors, the Company attachesimportance to diversification andadheres to the principle of"appropriate scale, multiple checks andbalances, professionalcomplementarity, and two-wayaccess". The Board of Directorsincludes experts in transportation,finance and law, and providesprofessional opinions and suggestionsfor the Company's road and bridgeoperation, foreign investment andfinancial management, ensuring thescientific decision-making of the Boardof Directors, doing a good job in "sixaspects" and improving the scientificand efficient decision-making of theBoard of Directors.In addition, each special committee ofthe Company includes independentdirectors and external directorsaccount for the majority, providingmore scientific, professional andobjective opinions and references forthe decision-making of the Board ofDirectors, ensuring that themanagement and operation of theCompany are more compliant andefficient.In accordance with a series of internal management systems such as the Articles of Association, the Rules of Procedure for the Shareholders'General Meeting, the Rules of Procedure for the Board of Directors, the Rules of Procedure for the Board of Supervisors and working rules of variouscommittees, the Company continuously strengthens its corporate governance level and improves its decision-making efficiency. Inthe corporate governance, in order to ensure efficient cooperation among all parties, the Company has actively satisfied therequirements of the "1+3+X" corporate governance operation system, i.e., taking Party building guidance as the targeted orientation,and making precise efforts through the three working mechanisms, i.e, "two-wheel driven decision-making", "counterpart liaisonservice", "two communications, two investigations and two reports", with a number of institutional measures as guarantee, thusrealizing the efficient and standardized operation of the Shareholders' General Meeting, the Board of Directors, the Board ofSupervisors and the managers of the Headquarters and units at all levels.
Board of Directors
General ManagerDeputy General Manager, Chief Engineer, Chief Accountant, General
Counsel, Safety Director, Chief Auditor
NominationCommitteeStrategic Development andESG Management Committee
Shareholders'
General Meeting
Board of Supervisors
Secretary of the Board of DirectorsAudit Committee
Compensation andAppraisal Committee
Party Building'sLeading Role
A Number ofInstitutionalMeasuresTwo-wheel DrivenDecision-MakingCounterpart Liaison
ServiceTwo Communications,Two Investigations and
Two Reports
The aspect of AdmissionReasonably determine the size of the Board of Directors and theproportion of full-time and part-time external directors; the Nominationand Appraisal Committee shall review the background of directors.The aspect of SystemContinuously improve the Articles of Association, the Rules of Procedurefor the Board of Directors and other systems to provide institutional basisfor directors to perform their duties.The aspect of ResearchCombine daily research and collective research to keep in-depthunderstanding of the operation and major projects of the Company andkey subordinate units.The aspect of CommunicationCommunicate well with directors, especially external directors, duringdaily work and before Board of Directors meetings, attach importance tosuggestions of external directors, and bridge external directors withmanagement and shareholders.The aspect of TrainingOrganize regular group study and training for directors.The aspect of CoordinationSet up the Secretariat of the Board of Directors, which is responsible forcoordinating the work related to corporate governance. The General Managershall make work reports to the Board of Directors every quarter, and thespecial committee shall set up corresponding departments and offices toprovide assistance for the relevant work of the special committee.
Adoption of14 resolutions
of the Supervisory BoardIncluding3 extraordinary
general meetingsConsideration of
14 motions
A total of6 supervisory
board meetings
Adoption of39 resolutionsof the Board of Directors
Total number of board members
A total of
board meetingsDuring the reporting period, theCompany held general meetings of
shareholders for4times
Including 4 independent
directors
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Shandong Hi-speed Company LimitedEnvironmental, Social and Governance (ESG) Report 2023
Risk Management and ControlShandong Hi-speed highly values the construction of the internal control management system of the Company. Every year, led bythe Enterprise Management Department, it organizes top-down system revision, optimization and inspection activities, reshapesand improves various system processes in combination with the changes of national policies and the business conditions of theCompany, and forms standardized and standardized work guidelines.During the reporting period, we continued to optimize and improve the Risk Management Measures, clarified the division ofresponsibilities, risk identification and assessment standards, monitoring and response mechanisms. We established a risk man-agement working mechanism of "unified leadership, division of responsibilities and full participation", in which the Company'slegal representative acted as the first responsible person and the Board of Directors made risk management decisions. And weestablished "three lines of defense" for risk management composed of grass-roots units, departments and offices of the Head-quarters, and audit and supervision departments.
In May 2023, the Company sorted out and formed a risk list consisting of 138 risk points around the five types of first-level riskframework, i.e., strategic risk, financial risk, market risk, operational risk and legal risk, which provided effective reference forsubsequent risk identification and assessment.
Compliance ManagementDuring the reporting period, the Company continued to improve the Compliance Management Measures, established a ComplianceCommittee responsible for the organization, leadership and coordination of compliance management. We established a professionallegal talent pool, identified possible compliance risks in 23 areas such as corporate governance, information disclosure,anti-corruption and anti-commercial bribery, and avoided compliance risks by establishing a risk case base and sharing classiccases. During the Reporting Period, the Company organized two internal compliance trainings and organized various units toparticipate in the activities of "Civil Code Publicity Month" and "Legal Publicity Month", so as to strengthen the legal awareness andlegal concept of all employees and enhance the sense of compliance management.
CaseThe Company's Risk Management TrainingOn July 24, 2023, the Company's internal audit personnel gave alecture. The Company's Chief Auditor, all personnel of the AuditDepartment and relevant business backbones of each subsidiaryattended the lecture. Through the sharing and explanation oftypical risk cases in nine aspects, such as fund control, financialmanagement and engineering management, business personnelin all lines were reminded to learn lessons from the cases, so asto enhance the risk prevention awareness of personnel ingrass-roots units, and promote the continuous improvement ofthe management level of grass-roots units, thus empoweringand increase efficiency for the Company's high-qualitydevelopment.
Risk Management Training
he Company conducted
3 internal risk trainings
the Company conducted
legal training sessions
with
2,025participants
with a total training duration of
67,132.50
hours
of which
were legal personnel
an average of
33.15
hours of training per capita
with a total of257participants
a total training duration of748 hours
an average trainingduration per capita of
2.91 hours
Key performance
Key performance
The first line of defense:
Grassroots units.
The second line of defense:
Departments and offices ofthe Headquarters.
The third line of defense:
Audit and supervisiondepartments.Special organizations andpersonnel are arranged toperform risk management
and control, and control
risks in advance.
Responsible forday-to-day riskmanagement in their
fields.
Supervise the risk management
work of grass-roots units anddepartments of the Company,
guide the risk identification,
evaluation, hidden dangerinvestigation and other work,
and give professionaloptimization and rectification
suggestions.
Initiatives of the Company to Strengthen Risk Management
Regular riskidentification and
assessmentactivities
Deep integration of
internal audit andrisk management
Strengthendynamic monitoring
of risk events
Intervention inadvance to push
forwardsupervision,
prevention and
control
Take cases as aguide to improvethe "soft power" of
risk prevention
During the reporting period,
During the reporting period,
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Shandong Hi-speed Company LimitedEnvironmental, Social and Governance (ESG) Report 2023
Investor Relations Management
Shandong Hi-speed thinks highly of investor relations management. We formulates internal systems such as ConnectedTransactions Management System, Information Disclosure Affairs Management System and Information Disclosure System. Basedon sufficient information disclosure, we unblocks investor communication channels, listens to investors' voices, maintains investorrelations, and gradually forms the investor relations management concept of "excellent performance and sincere return".In terms of shareholder returns, the Company actively responded to the policy guidance of China Securities RegulatoryCommission and Shanghai Stock Exchange advocating cash dividends and dividend distribution continuity and stability. In 2020,the Company made an important decision to increase the dividend ratio in 2019 from 36.12% to 60.07%. In the same year, theCompany issued the Shareholders' Return Plan of Shandong Hi-speed Company Limited for the Next Five Years (2020-2024), promising that "inthe case of meeting the cash dividend conditions, the profit distributed by the Company in cash form in the next five years(2020-2024) shall not be less than 60% of the net profit attributable to the owners of the Parent Company in the consolidatedstatement of that year". The stable dividend policy and high proportion of dividends reflect the determination of the Company tohighly value shareholder returns and maintain high-quality development.
In terms of investor communication, the Company activelycommunicates with investors through various channels suchas performance briefing meetings, investors' visit, investorhotline, investor relations management column on theCompany's website, investor communication group, etc. Weresponds to investors' concerns, pays attention to protectinginvestors' legitimate rights and interests such as their right toknow and the voting right, and maintains a good trustrelationship between the Company and investors.During the reporting period, the Company was awarded thecertificate of "Excellent Practice of 2022 Annual ReportPerformance Presentation Meeting of Listed Companies"issued by the China Association for Public Companies, andwas rated Grade A in information disclosure.
Certificate of ExcellentPractice in PerformancePresentation Meeting
Shanghai Stock Exchange Information
Disclosure "Grade A"
"Five-type" Party Building
Party BuildingParty Building organization
During the reporting period, the Company concentrated on "Five-type Party Building", namely: leading party building, smart partybuilding, brand party building, innovative party building and vigorous party building, aiming to shape the party building brand. Wecontinued to improve the Rules of Procedure for the Party Committee and the "First Topic" System of Party Organization Meetings, insisted onintegrating Party building work into all aspects of the Company's production and operation. We adhered to Party building guidance,strengthened Party organization construction, and promoted the in-depth integration of various work of the Party organization withthe Company's operation and management. During the reporting period, Shandong Hi-speed Party Committee had 326 grass-rootsparty organizations, including 36 party committees, 10 general party branches, 280 party branches and 3,769 party members.
Leading Party Building·Flag leading · Thought navigating ·System escortingSmart Party Building
·Build a smart party building platform·Build a "1+N" party building performance appraisal systemBrand Party Building
·Arrange good brand layout ·Build strong brand core value·Strengthen brand integration empowermentInnovative Party Building
·Innovative working model ·Innovative education carrier·Innovative party building positionsVigorous Party Building·Make party building "real" ·Make cadre team "active"
YearCash Divident per Share
Amount of Cash Dividends(tax included)
Percentage of Net Profit Attributableto Owners of Parent Company in the
Consolidated Statement
20192020202120222023
RMB0.38RMB0.38RMB0.40RMB0.40RMB0.42
RMB 1,828 millionRMB 1,828 millionRMB 1,924 millionRMB 1,931 millionRMB2,033 million
60.07%
89.66%
63.05%
67.63%
61.66%
Key performanceDuring the reporting period,
the Company held
performance briefing sessions
saw
online surveys
offline surveys
e-interactions
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Shandong Hi-speed Company LimitedEnvironmental, Social and Governance (ESG) Report 2023
Shandong Hi-speed Company Limited
Weifang Operation Management CenterXiajin Operation Management CenterLuzhou Southeast Companyr
Shandong Hi-speed Company Limited, WeifangOperation Management CenterShandong Hi-speed Company Limited
2022 Enterprise Party Building Brand Demonstration Unitof Shandong Province
Excellent Party Building Brand Case2023 Top 20 Excellent Party Building Culture Brands inHighway Traffic Industry2023 Excellent Party Building Culture Brand in HighwayTraffic Industry
"The First Excellent Party Building Brand inHighway Traffic Industry"2023 Excellent Brand of Enterprise Party Building inShandong Province
Party Building honors
Implementation of Party Building Ideology
In order to thoroughly implement Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, enhance Partymembers' sense of identity and belonging, strengthen Party building governance, enhance the overall quality of Party members,and promote harmonious relations between the Company and Party members, the Company carried out Party building activitiesand held 122 Party committees during the reporting period.Case 1Thematic Education with Ideological Guidance
On April 18, 2023, the Party Committee of the Company heldan educational work conference on the theme of "Learning andImplementing Xi Jinping Thought on Socialism with ChineseCharacteristics for a New Era". The meeting thoroughlyimplemented the spirit of General Secretary Xi Jinping'simportant speech and made specific arrangements for theCompany to carry out thematic education. The leaders of theParty Committee of the Company presided over the meeting,and more than 210 people from the leading group, middle-levelleaders and heads of Party workers and discipline inspectiondepartments of the Company attended the meeting throughon-site attendance and video form.
Thematic Education Work Conference
Case 2
Welcome the CPC Founding Day on July 1 with original intention
On June 26, 2023, soon before the CPC Founding Day on July 1,Beijing-Shanghai Ji'nan Operation Management Centerorganized and arranged the activities of "Two Excellent and OneAdvanced" commendation, advanced deeds sharing and specialparty lessons in 2023, which were hosted by the secretary ofadvanced grass-roots organizations and the secretary of theParty Committee.At the meeting, two secretaries guided all staff to furtherstrengthen their ideals and beliefs, adhere to their initial missionand contribute to "creating a road of happiness" through theirunique point of view.
The CPC Founding Day on July 1 with original intention
Case 3Party Building leads to the "Road of Happiness"
The Company inherits the cultural spirit of Shandong Hi-speed,develops and adheres to the "Roads in Heart" brand culture, i.e.,keeping the roads, managing the roads and developing theroads with heart, to form the brand matrix of "Roads in Heart"with the toll station sub-cultures "Colorful Springs", "ColorfulStones" and "Colorful Peaks". We implements the developmentconcept of "Party Building + Culture" which says "party buildingleads the direction, and culture empowers the enterprise", tobuild Jinan-Laiwu Expressway into a red demonstration road, asmooth and comfortable road, a scientific and technologicalroad, a green ecological road, and a harmonious model road.
Party Building leads to the "Road of Happiness"
3837
Shandong Hi-speed Company LimitedEnvironmental, Social and Governance (ESG) Report 2023
Business EthicsAnti-corruption and Anti-briberyShandong Hi-speed has formulated internal systems such as the Guidelines for Political Supervision of the Company's DisciplineInspection Commission and the Detailed Rules for the Implementation of Discipline Inspection Work Assessment of subordinateunits. We also has set up an assessment and supervision mechanism to effectively implement anti-corruption work, prevent thebreeding of corruption soil, standardize the business ethics behavior of all employees, clarify their responsibilities inanti-corruption, thus creating a working mechanism that "staff dare not be corrupt, cannot be corrupt and does not want to becorrupt".Shandong Hi-speed regards the Coordination Group on Party Style, Clean Governance and Anti-Corruption Work as the highestgovernance body of anti-corruption work, and the Secretary of the Discipline Inspection Commission serves as the Group Leader.The work coordination group is responsible for implementing the deployment requirements of anti-corruption work and ensuringthat the Company's business practices are legal and compliant. In addition, the work coordination group has a coordinationgroup office, which is responsible for organizing and preparing meetings of the coordination group for party conduct and cleangovernance building and anti-corruption work, and cooperating with departments and offices to carry out anti-corruption work.We require our employees to strictly abide by the integrity regulations, restrain their own behavior, and enhance their awarenessof discipline and self-discipline, so as to promote a win-win situation of "seeking cooperation with quality, seeking market sharewith reputation, and promoting development with integrity". In order to totally eliminate corruption, the Company continuouslyimproves the whistleblower protection mechanism. We have set up various reporting channels, such as letters, calls, visits, etc.,to encourage all employees and partners to report suspected corruption, bribery and other violations of business ethics. TheCompany strictly follows the internal rules and procedures to carry out report acceptance, investigation and feedback, andstrictly deals with violators for cases once verified, . During the reporting period, the Company did not see any litigation casesrelated to corruption.During the reporting period, the Company carried out four sessions of anti-corruption education and anti-corruption knowledgetest, which greatly enhanced the integrity awareness of the Company's employees.Case 1The Company's Clean Governance Education for the First Quarter
On February 23, 2023, the Discipline Inspection Commission of theCompany held the clean governance education for the firstquarter, and organized the cadres and staff of the Headquarters towatch the warning films Strict Political Discipline and BuildingStrong Integrity Style Dams. The educational film told the storiesof 8 criminal Party members and cadres. They lost their beliefs,seriously violated the Party's political discipline and rules, seriouslyviolated the spirit of the Eight Central Regulations, and used theirpositions to seek personal gains and finally went to crime. Thesefilms educated the cadres and workers of the company to takethese cases as a mirror, examine their own integrity, constantlyimprove their political determination, discipline determination,moral determination and anti-corruption determination, and striveto create a good political ecology for the Company.
Integrity Education Conference
Case 2
The Company's Integrity Knowledge Test
On December 25, 2023, the Company launched the 2023Integrity Knowledge Test. Participants actively prepared andlearnt relevant knowledge on their own initiative. Through thistest, the employees of the Company have greatly enhanced theiranti-corruption awareness and effectively built up a line ofdefense against corruption.
Integrity Knowledge Test
Key performanceDuring the reporting period,the Company conducted several anti-corruption trainings,
with a total of
3,187
employees participating in
anti-corruption trainings
Directors of Shandong Hi-speed
participated in anti-corruption
training for
times in total
with a total of
participants
a total training duration of
hours
an average training duration of
hours per capita.
with an average of
120.15
hours of training per employee
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Shandong Hi-speed Company LimitedEnvironmental, Social and Governance (ESG) Report 2023
Lush Mountainsand Lucid waters,Protecting theEcologicalBackground Color
Environmental Protection 43Utilization of Resources 47"Three Wastes" Management 50
Building Beautiful China, advancingmodernization featuring harmonybetween humanity and nature.——Xi Jinping's Speech at The National Conference on Ecological and Environmental Protection
Heating system
CaseInformation Group's tree planting event
In March 2023, the Information Group organized a tree planting event with the theme of "planting and sowing to witnessthe growth and glory of the Company" in the Intelligent Transportation Industrial Park. More than 500 peopleparticipated in the event, resulting in a greening area approximately 300 square meters.
Environmental ProtectionShandong Hi-speed integrates the concept of green and low-carbon development all aspects ofoperation and puts it into practice. In order to strengthen the environmental management of newand reconstruction projects, the Company formulated the Environmental Protection ManagementRegulations for New and Reconstruction Projects and the Environmental Protection Management System forMaintenance Operations in accordance with the Environmental Protection Law and other relevant laws andregulations, and established an environmental protection leading group in the EngineeringManagement Center to maintain a good construction environment and prevent pollution sourcesgenerated by construction projects. The subsidiary Information Group passed GB/T24001-2016environmental management system certification in July 2020.
During the reporting period, Weilai Operation Management Center of the Company performed energy-saving management ofheating system in winter. According to the building heating demand characteristics in different areas, different functions anddifferent periods, the Center comprehensively analyzed parameters such as atmospheric temperature, temperature and time ofoutlet and return water, adjusted the heating flow by controlling the electric regulating valve on the main heating pipeline, ithad achieved optimization of heating system, which not only improved indoor comfort, but also reduced heating heatconsumption, thus reducing heating energy consumption and saving operating costs.
Environmental Management System Certification
Green Office
Green buildings
Daily officework
Vehiclemanagement
Canteenmanagement
PropertymanagementPublic opinionpropagandaAssessment,rewards andpunishments
TimerTemperature sensorPressure sensorElectric control valveWindow insulationHeating pipeinsulationRegularmaintenanceTimely maintenance
Intelligent heating
system
Timed temperature
controller
System maintenance
Improve thermal insulation
effect of hot terminalWatersupply lineWaterreturn line
WatersupplytemperatureReturn watertemperature
Return waterpressure
Water supplypressure
T1T2P2MP1
?Improve office supplies account and expense standard, and clarify online approval process.?Conserve resources by starting with the conservation of water, electricity, and paper, power offcomputers, air conditioners and other equipment when leaving the office, avoid usinghigh-energy-consuming office appliances.?Consciously develop the habit of frugal in the office, and form a good atmosphere ofadvocating economy and reducing consumption for all employees.?Eradicate problems such as rough management, leakage and venting through strict
examination and approval of the intelligent office system.?Encourage the use of new energy vehicles, as supplementary or alternative for fuel vehicles.?Encourage employees to engage in low-carbon travel and reduce carbon emissions by takingshuttle buses at relatively concentrated points in time.?Strictly control vehicle maintenance and refueling management, and encourage oil saving,
energy saving and consumption reduction through reward and punishment measures.
?Strengthen the management of water, electricity, gas and heating in the Headquarters. There
are three modes of air conditioning operation: "night, energy saving, and energy consumption".?Arrange education for logistics security, housekeepers, cooks and other property personnel to
enhance their awareness of saving, service and safety.?Set up a publicity column for "energy saving and consumption reduction" activities in the
Smart Communication, and encourage all units to submit good practices of the theme.?Launch special publicity activities of "saving starts from me" and strengthen special training on
saving office.?Take energy saving and consumption reduction as one of the key tasks, decompose tasks and
include them in annual assessment.?Reward acts of thrift, criticize acts of waste, and hold individuals accountable for serious
consequences.
?Pay attention to the thrifty management of canteen, and make the best use of things and materials.?Calculate the number of diners through big data to determine the production needs and avoid
waste of meals.?Strengthen consumption reduction propaganda in restaurants, advocate the "empty plate" and
service small-portion meals.
Reduce heat consumptionin winter heating
Buildings
Control line
Signal lineSignal line
Signal line
Signal line
4443
Shandong Hi-speed Company LimitedEnvironmental, Social and Governance (ESG) Report 2023
CaseConstruction of Digital Cloud CabinThe Information Group implements the four designconcepts - intelligence, safety, green and low-carbon, andconstructs the Digital Cloud Cabin, integrating commandcabin, ticket cabin, information cabin, power cabin andservice cabin, with energy supply, engine room, chargeaudit and special case processing service units. DigitalCloud Cabin gives priority to green industry and renewablematerials in material selection, and actively introduces newenergy technologies. This not only helps reducingenvironmental pollution and waste of resources, but alsopropels the process of green and sustainable development.After careful R&D and design, the Digital Cloud Cabin hasentered the trial operation stage at Gushan Toll Station,Zhangqiu South Toll Station and Heze High-tech Toll Station.
Shandong Hi-speed actively proceeds with the construction of greendemonstration road sections, implements "intensive funding, scientific programs,project prioritization, and list responsibility", continuously optimizes the roadenvironment of the sections under its management, maintains a high level of roadappearance, and shows the brand image of "Shandong Hi-speed maintenance,precise and long-time lasting". In this year, the Company completed 800.61kmdemonstration road sections with high quality up to standard, accounting for
30.21%, exceeding the annual target, accounting for 77.54% of the accumulated
completion in the 14th Five-Year Plan.In addition, the Company carefully organized the contest of "up-to-standardsection" of the demonstration road, with all units in the province selecting 1-2kilometers for the contest and implementing the "100-day assault" activities. The"21550" mode for seedling pruning was adopted by Xiajin Operation ManagementCenter, realizing the uniformity of "top, side and bottom". Ji'nan-Qingdao Ji'nanOperation Management Center implemented section management, post andresponsibility determination and performance fulfillment, and continuouslyimproved the image of road appearance within the driving vision.During the reporting period, a total of 8,321,800 square meters of seedlingsunderwent comprehensive pruning, with an additional 20,200 seedlings beingreplanted. Furthermore, 8,7274,500 square meters of slope interworking andgarden greening were pruned and mowed to ensure the sections under controlmaintain a visually appealing appearance.
Green expressway
Total environmentalinvestment（10k RMB ）
5,011.92
Duration of environmentaltraining per capita（Hours）
Pass rate of pollutantmonitoring
100%
Synchronous operation rate ofenvironmental protection facilities100%Implementation rate of "threesimultaneousactions" for environmentalprotection of construction projects
100%
Environmental accident（No.）
Environmental violation（No.）
Number of environmentaltrainings（person-times）
Total duration of environmentaltrainings（Hours）
1,544
800.61km
demonstration road sections withhigh quality up to standard
8,321,800square meters
of seedlings underwentcomprehensive pruningadditional
20,200
seedlings being replanted8,7274,500square metersof slope interworking and gardengreening were pruned and mowed
Key performance
4645
Shandong Hi-speed Company LimitedEnvironmental, Social and Governance (ESG) Report 2023
Case 1Air-energy heat-pump heating transformationIn 2018, Shandong Hi-speed Weihai Operation Management Center performedheating transformation on Nanhai Toll Station, Nanhuang Toll Station and RushanEast Toll Station, upgrading from air-conditioning heating to air-energy heat-pumpheating. In 2022, Wendeng North Toll Station was also renovated for heating.After heating transformation, the average electricity consumption per hour ofthe four toll stations is: 142 kilowatt hours for air conditioning heating, 55kilowatt hours for air energy heat pump heating, saving electricity consumptiontotally about 61.3%. Compared with air conditioning heating, air energy heatpump heating lasts for a longer time, with continuous temperature andremarkable energy saving effect.
Air energy heat pump
Case 2Ultra-low temperature air-energy heat pump unit heating transformation
Beijing-Taibei Ji'nan Operation Management Center planned to use ultra-low temperature air energy heat pump units forheating, and arranged special hot water units to provide domestic hot water bath. It is estimated that the annualoperation cost can save 20%-30%.
Utilization of ResourcesTransformation with energy-saving technology
Key indicators Units 2023Natural gas 10k cubic meters 174.47Gasoline 10k litres 245.21Diesel 10k litres 118.64Liquefied petroleum gas Tons 102.06Fuel oil Tons 23.23Liquefied natural gas Tons 0.48Total purchased electricity 10k kWh 9,893.64Total purchased heat GJ 20,518.55
Energy consumption
Greenhouse gas emissions
Greenhouse gas emissions (Scope I) Tons of carbon dioxide equivalent 12,633.09Greenhouse gas emissions (Scope II) Tons of carbon dioxide equivalent 87,270.55Total greenhouse gas emissions Tons of carbon dioxide equivalent 71,313.64Total greenhouse gas emission intensity Tons of carbon dioxide equivalent/ one million RMB 2.69Comprehensive energy consumption
※
Tons of standard coal 19,430.76Comprehensive energy consumption density Tons of standard coal/ one million RMB 0.73
Note:
1. The Company acquired Shandong Hi-speed Information Group Co., Ltd. in 2023, which increased the scope of consolidation.
2. In order to further improve the operation and management level, the Company carried out intelligent transformation, resulting in an increase in electricity
consumption.
3. In order to further enhance the experience of drivers and passengers, the Company upgraded and remodeled the lighting facilities at toll stations and other
places, resulting in an increase in electricity consumption.
Key performance
4847
Shandong Hi-speed Company LimitedEnvironmental, Social and Governance (ESG) Report 2023
Amount of Waste Generated
CaseTap water transformation project
The original office area of Weifang Road Management Sub-center of the Company adopts underground deep wellsubmersible pump and above-ground pressure tank for water supply. In order to respond to national policies and furtherpromote energy conservation and emission reduction targets, Weifang Operation Management Center has organized andimplemented municipal tap water transformation project. Through the transformation, the Operation ManagementCenter adopts municipal tap water supply, which can control the water supply quantity more accurately, make full useof the water resources of the urban water supply system, and fully improve the full utilization of water resources, whichhas positive significance for continuously promoting the Company's energy conservation and emission reduction.
Water-saving transformation
Case
Information Group's Introduction ofIntegrated Energy Management System
The Information Group introduced HAMDELL, an integrated energy managementsystem that enables detailed and independent measurement of energy consumptionat various locations, focusing in particular on the consumption and safety ofelectricity and water resources. Through this system, the Information Group's electricenergy and other energy data can be fully collected, and independent energyconsumption accounting can be done according to units and sub-items, so thatmanagement personnel can clearly know the usage and consumption status ofvarious types of energy, and then effectively identify excessive energy consumptionpoints and unreasonable energy consumption habits.
Integrated Energy ManagementPlatform Real-time Monitoring
Integrated Energy Management
Platform Video Surveillance
Case
Application of new foamaluminum noise barrier
With the continuous expansion of expressways, traffic noisepollution hazards will inevitably occur to environmentalsensitive points such as residential areas and schools alongthe line. Shandong Hi-speed selects a new type of foamaluminum sound barrier, which is an aggregate composedof bubbles and aluminum diaphragms. It has technicalcharacteristics and advantages such as irregularity andthree-dimensional of bubbles.
New Type of Foam Aluminum Noise Barrier
Digital management
In 2023, the total waterconsumption of theCompany was
814,000 tons.
"Three Wastes" Management
In order to ensure the normal operation of sewagetreatment system, Shandong Hi-speed has formulatedRegulations on the Management of Sewage TreatmentSystem and Measures for the Management of SewageTreatment Equipment, which stipulate in detail themanagement of sewage treatment system inOperation Management Center and service areaunder its jurisdiction. The following sewage treatmentmethods are as follows:
?Electrical and mechanical staff regularly inspectequipment during operation of sewage system.Sewage treatment equipment shall be inspectedonce a day, and the inspection information shall berecorded in the Inspection Record Form of SewageTreatment Equipment.?The sewage of mixing station shall be purified and
precipitated first, and the treated clean water shallbe used for vehicle cleaning, road surface watering,structure maintenance, etc. Other unusablewastewater shall be discharged into sewagepipeline after treatment and inspection.?Laboratory wastewater shall be collected by
classification according to laboratory managementmethods and uniformly delivered to qualifiedwastewater treatment institutions for disposal.
Wastewater Treatment
Construction waste residues shall be collected andtransported to waste treatment station for disposal asrequired.
Waste Residue Disposal
By installing noise barrier facilities, the noise hazardcaused by expressway operation to the sensitivepoints of acoustic environment along the line can beeffectively eliminated or mitigated.
Noise Treatment
Key Indicators Units 2023Waste Lamp Tube Piece 2,487Waste Printer Cartridge No. 4,572Waste Battery No. 8,481Waste Ink Cartridge No. 2,225Waste Lamp Cartridge No. 55Waste Paper Bag 10,379Domestic Waste Ton 703.96Kitchen Waste Ton 196.09
Key performance
5049
Shandong Hi-speed Company LimitedEnvironmental, Social and Governance (ESG) Report 2023
Innovation-driven,Safe Production forQuality Assurance
Innovative R & D 53Product Quality 57Safe Production 61
Quality in mind and action leads toperfection.A hundred ways and a thousandorders for guaranteed safety. ——Safety Concept of Shandong Hi-speed
Innovative R & DShandong Hi-speed attaches greatimportance to innovation and R&D. TheCompany has formulated the Measures for theManagement of Innovation Work to promotesthe smooth realization of the Company'sstrategic objectives and tasks and promotethe systematization, standardization,specialization and institutionalization ofinnovation work. The Company creates agood innovation environment, speeds up thesharing and transformation of achievements,strengthens the promotion and application ofachievements, constantly innovates thesystem mechanism, increases investment,creates a scientific innovation platform, andstrives to solve development problems.The Rail Transportation Company has set upa Research and Development Center, whichis managed by the management committeeand consists of five research institutes.
Shandong Hi-speed’s science and technology innovation focuses on solving practical problems in expressway construction andoperation, taking "improving quality, reducing cost and increasing efficiency" as the goal orientation. First, accelerate theconstruction of information highway and intelligent highway, and inject continuous power for and high-quality development ofhighway. Secondly, with the goal of digitalization of facilities, specialization of maintenance, modernization of governance,efficient operation and high quality service, promote the "Four New" technology of maintenance, and comprehensively improvethe maintenance ability and road condition level.Jinan-Qingdao Expressway has made remarkable achievements in scientific and technological innovation and won 40 scientificand technological awards, including 24 provincial and ministerial awards. These achievements fully demonstrate the outstandingcontribution of Jinan-Qingdao Expressway in science and technology, intelligence and green environmental protection, andsuccessfully shape the model image of the road of science and technology, intelligence and green environmental protection.During the reconstruction and expansion of Jinan-Qingdao Expressway, the green science and technology demonstrationproject implemented by us was listed as the Science and Technology Demonstration Project by the Ministry of Transport andthe Supporting Project for Shandong Demonstration Zone of "Traffic Makes the Country Stronger". The project focused on 5special key technologies and covered 30 science and technology demonstration sub-projects.
R&D Center Organizational Structure
ChairmanManagement
Committee
TechnicalCommitteeVice Chairman
Research and development platform
Major innovations
Shandong Hi-speed actively cooperates with the government and universities to establish many R&D platforms.Platform names Accreditation authoritiesAcademician Workstation of Shandong Province Science and Technology Department of Shandong ProvinceEnterprise Technology Center of Shandong Province Development and Reform Commission of Shandong Province Department of Transportation of Shandong ProvinceEnterprise Technology Center of Yantai City Department of Industry and Information Technology of Yantai City Science and Technology Bureau of Weifang CityTransportation Safety and Simulation Technology R&D Center Competent Authority of State-owned Assets Competent Authority of State-owned Assets Competent Authority of State-owned Assets Competent Authority of State-owned AssetsTransportation Safety and Simulation Technology R&D Center Shandong Hi-speed Group Shandong Hi-speed Group Shandong Hi-speed Group Shandong Hi-speed Group
Bridge and Tunnel Engineering Maintenance Technologyand New Material Industry R&D Center of Shandong ProvinceKey Laboratory of Water Pollution Prevention and Controlof Weifang CityR&D Center for Key Technologies of Expressway IntelligentOperationR&D Center of Construction Quality Improvement and KeyTechnology for Expressway Reconstruction and ExpansionR&D Center of High-performance Foam Aluminum NewMaterial Technology and ApplicationR&D Center for Key Technologies of Expressway IntelligentOperationR&D Center of Construction Quality Improvement and KeyTechnology for Expressway Reconstruction and ExpansionR&D Center of High-performance Foam Aluminum NewMaterial Technology and Application
Key indicators Units Year 2023
Total number of R&D team members Person 1,018 % 9.46 Doctor Person 3 Master Person 233 Bachelor Person 668 Junior College Person 93 High school or below Person 21 Under 30 (exclusive of 30) Person 217By age
30-40 (inclusive of 30, exclusive of 40) Person 465 40-50 (inclusive of 40, exclusive of 50) Person 273 50-60 (inclusive of 50, exclusive of 60) Person 63
Institute of Intelligent Manufacturingand Advanced Equipment
Institute of Advanced MaterialsIndustry Technology
Institute of IntelligentFreight Railway
Institute of Digital IntelligenceInstitute of Railway EquipmentMaintenance andManagement Technology
Key performance
Proportion of R&D personnel to the totalnumber of employees in the Company
Byeducation
5453
Shandong Hi-speed Company LimitedEnvironmental, Social and Governance (ESG) Report 2023
Shandong Hi-speed has formulated the Intellectual PropertyManagement System, incorporated the intellectual propertymanagement work of each subordinate unit into thecomprehensive performance appraisal system, and regularlyconducted on-site inspection on the information submission andwork development of each subordinate unit. In accordance withrelevant national laws and regulations, the Group's Measures for theManagement of Science and Technology Projects, the Company'sMeasures for the Management of Innovation Work and other relevantregulations, the Company has formulated the Measures for theManagement of Transformation of Scientific and Technological Achievementsto encourage employees to carry out inventions and creations,promote scientific and technological progress, cultivateindependent intellectual property rights, push the application andtransformation of scientific and technological achievements of theCompany, and advocate the useof patent system to protectindependent research anddevelopment achievements.The subsidiary Information Grouphas passed GB/T 29490-2013Intellectual Property ManagementSystem Certification in October2023﹒
Innovation incentive
Blueprint of "1341" Digital System
Technologytype
Innovation achievements
1 StrategyThe overall strategyfor thedigital upgrade
of the Company.
3 Actions
Promote the three key tasksof digital new infrastructure,
industrial digitalization and digital industrialization.
4 Directions
Data standardization,data sharing, data valorization,
data capitalization.
1 Ecosystem
Digital industrializationderivative ecosystem.
GB/T 29490-2013 Intellectual PropertyManagement System Certification
Key indicators Units 2023
R&D investment Ten thousand RMB 48,427.32Proportion of R&D investment in main business income % 1.82
Innovation achievementsCumulative number of patents granted No. 417Cumulative number of invention patents granted No. 230Cumulative number of utility model patents granted No. 163Cumulative number of design patents authorized No. 24Cumulative number of software copyrights No. 175Cumulative number of published papers No. 124Total number of trademarks No. 35National high-tech enterprise No. 13RDI enterprise No. 9
Case 1
Participation in Science andTechnology Innovation Forum
Shandong Hi-speed displayed the achievements of "FourThemes", i.e., green maintenance in the whole life cycle,research and development of bridge maintenancetechnology and materials, safety improvement of trafficfacilities, and digital improvement of maintenance operationat the forum, reflecting the Company's developmentachievements in accelerating the transformation fromelement-driven to innovation-driven, and transformation ofmaintenance to green, low-carbon, intelligent and efficient. Atotal of 245 maintenance innovation achievements werecollected, and the Company won one first prize, two secondprizes, seven third prizes and 13 excellent prizes for scientificand technological innovation achievements in maintenancemanagement. The Technical Guide for Expressway BarrierReconstruction won the Excellent Award for InnovationAchievement Promotion.
Case 2Information Group hostedthe 25th China ExpresswayInformatization Conferenceand Technology Products Expo
From March 30 to 31, 2023, Information Group hostedthe 25th China Expressway Informatization Conferenceand Technology Products Expo with the theme of"Innovation, Integration and High Quality Development".The Expo was the highest annual event in the field,showing the latest achievements in the research anddevelopment and application of highway informationtechnology products, including innovative practicalachievements such as "Smart Brain", "new generationcloud toll" and "zero carbon" expressway, attractingmany industry experts' eyes, and the response was verygood.
We adopted in a large scale the pavement milling material recycling technology, waste concreterecycling and waste guardrail recycling for the first time in China, to achieve 100% utilization of oldasphalt, old guardrail, realizing not only significant economic benefits, but also green environmentalprotection.
The application of anti-icing technology and fog induction system in the sections of extra-large bridgesand large structures can ensure driving safety in bad weather, which has great economic and socialbenefits.We actively apply intelligent monitoring of expressway traffic information, comprehensive perception oftraffic weather and other technologies, promote the construction of "Expressway Cloud",comprehensively build "unmanned toll station with full payment", "ETC non-stop toll collection" and"highway electronic inspection", build "Internet +" intelligent travel service platform for expressways, andcreate "Highways of Intelligence" efficiently.
We widely promoted the subgrade filling with industrial waste such as slag, red mud, etc.; we used Bayerprocess red mud to build an expressway for the first time and reached the international leading level.
RecyclingRoad fillingwith waste
Intelligencetechnology
Resistance tobad weather
Key performance
5655
Shandong Hi-speed Company LimitedEnvironmental, Social and Governance (ESG) Report 2023
The Company's quality policy can be summarized as follows:
Product QualityProduct quality managementShandong Hi-speed takes "serving the public and contributing to the society" as its unshirkable responsibility and obligation. Throughscientific operation and careful care of roads and bridges, Shandong Hi-speed provides fast, smooth, beautiful and civilized "SafeRoads" for drivers and passengers, building each road and bridge into a thoroughfare for people flow, logistics, information flow andcapital flow to create benefits, and also building each road into a fulcrum to extend modern civilization and carry public hopes.
2023 goals achievedAll units closely centered on the objectives and tasks at the beginning ofthe year. Combined with the actual situation of the units, theyimplemented responsibilities, strengthened measures, performed varioustasks well, and further improved the quality management ability. All theassessment indicators reached the quality target standards.
The Company successfully passed the ISO 9001 Quality Management System Certification in December 2001, and was the first roadand bridge operation enterprise in China meeting the requirements of ISO 9001-2000. In August 2023, the two systems passed thesupervision certification audit again.
Completion detailsCharging speed Up to standard.Entry license plate input accuracy The entry license plate input accuracy rate was 99.97%.Responsible complaint rateCustomer service satisfaction The customer service satisfaction was 98.81%.Miss rate The miss rate was 0‰. Completion details
Time of arrival at sceneTime of obstacle clearingDuration of traffic jam
Responsible complaint rateImportant information reporting
Completion detailsElectromechanical equipment integrity rateETC lane transaction pass rate The ETC lane transaction pass rate was 99.94%. Completion detailsHotline service satisfaction rate The hotline service satisfaction rate was 99.79%. The timely accuracy of road condition information release was 99.90%.
Continuously improve the service
quality of charging, maintenance,
road property,information/electromechanicalequipment and travel.
Provide fast, smooth,beautiful and civilized "Safe Road"
for drivers and passengers.
Serve the public,contribute to society,repay shareholders and
develop employees.
Effectively improved the quality of fee-based services; received a total of1,322 complaints, and no complaints were caused by the Company.
The compliance rate of "arrival at the scene in 20 minutes for accident-pronesections" was 100%.The compliance rate of "clearing fault vehicles and general accident vehiclesin 30 minutes for accident-prone sections" was 100%.Achieved "no traffic jam caused by management reasons for more than 1.5hours" and "no traffic accidents caused by management responsibilities".A total of 214 complaints were received, and no accountable complaintswere caused by the Company.
No major electromechanical equipment failure occurred, and the integrityrate of electromechanical system equipment was 99.99%.
Timely accuracy of roadcondition information release
Achieved "no concealment, late reporting, omission and misreporting ofinformation on serious emergencies" and "no adverse consequences causedby inadequate supervision on road-related construction sites".
Charging service qualitymanagement objective
Road management servicequality management objectives
Quality management objectives forinformation/electromechanical equipment
Travel service qualitymanagement objectives
5857
Shandong Hi-speed Company LimitedEnvironmental, Social and Governance (ESG) Report 2023
Digital managementFocusing on the operation and management of expressways, the Company has built a digital system for the businessmanagement of expressway toll collection, road management, road bridge and tunnel maintenance, and comprehensivelystrengthened the quality control of expressway road and bridge operation management.
Occupational health
Shandong Hi-speed abides by the Law on Prevention and Control of Occupational Diseases and other relevant laws and regulations,continuously strengthens occupational health and safety management, eliminates potential occupational health risks and creates ahealthy and safe working environment for employees by regularly organizing physical examination for employees, carrying out specialoccupational health training and distributing relevant health and safety materials to employees on special posts. In addition, we passedGB/T 45001-2020/1S0 45001:2018 Occupational Health and Safety Management System Certification.
Key performance
Key indicators Units 2023Number of quality culture trainees Person-time 2,939Total hours of quality culture training Hour 184,316.00Number of quality culture training sessions No. 11Hours per capita of quality culture training Hour 62.71
Key performance
Key indicators Units 2023
Certificate rate of special-work operators % 100% % 100%Employee medical examination coverage % 100%New occupational diseases No. 0
Occupational injury insurancecoverage for employees
During the reporting period, Shandong Hi-speed arranged quality risk assessment for 4 times.
In the process of work, we have taken health hazard protection measures.
The management of labor protection articles shall follow the principle of "ensuring safety, reliable quality, less wasteand equipping as needed", so that labor protection articles can really play a role in protecting the safety and health ofworkers.Labor protection
Labor protection articles or appliances for operators mainly include: safety helmet, respiratory protection, eyeprotection, hearing protection, protective shoes, protective gloves, protective clothing, fall protection, etc.Protection of workers
Each unit shall distribute corresponding operation protective articles or appliances to the operators according to theirwork nature and working conditions, and establish an account for distribution of labor protective articles andappliances.Each unit shall strictly supervise the correct wearing and use of labor protection articles by the operators on duty.Those who fail to wear and use labor protection articles according to regulations are prohibited from taking up duty.
Each unit's protection measuresDigitization project Project content
Construction of intelligentinspection robot and analysisdecision system
Construction of chargeinformation managementsystem
Construction of chargeinformation managementsystem, charge businessinspection and assessmentmanagement system
?The system realizes the functions of highway toll data reporting, toll station flow, tollamount query, account splitting data query and statistics, etc.?A scientific charging inspection and evaluation index system with multiple levels andfactors realizes the flexible adjustment of the key work of the Company towards thesubordinate units, and fully realize the quality control of charging businessmanagement.?Realize the patrol management, office work management, road-related constructionmanagement and other business management of expressway management.
?The intelligent robot of tunnel vault acquires data such as tunnel structure
deformation and crack with 3D scanner, high-definition camera, infrared camera andenvironmental monitoring sensor, transmits massive high-definition data to thebackground by 5G communication technology, and automatically identifies diseasesby artificial intelligence technology.
?Connect the case information of the intelligent brain system of the Group, uniformly
summarize the road-related compensation, obstacle clearing and rescue data, form acase database, and aggregate GPS, portal, intelligent brain, travel and other data.
6059
Shandong Hi-speed Company LimitedEnvironmental, Social and Governance (ESG) Report 2023
"126" safety assurance"1 Core"
"2 Directions"
"6 Key Tasks"
·Make the foundation sound. ·Optimize the management system. ·Improve the safety quality of all staff.
Implement the safety responsibilities of all employees, the main responsibilities ofhigh-risk units and key units, and the responsibilities of relevant parties.Toward the directions of innovation-based development and active management-baseddevelopment.
Set up new industry safetystandardization benchmarks.Focus on prevention first andspecial rectification.
Deepen safety digitalizationand standardization upgrading.·· ·
Production safety committee
Production safety inspection
The Company implements unified leadership and hierarchical management in terms of safe production. The Company establishes the safeproduction Committee (hereinafter referred to as "Safety Committee"), and the Chairman of the Board serves as the Director of the SafetyCommittee. The Office of Safety Committee is responsible for organizing safety assessment of all units, and commending and rewardingunits, departments and individuals that have made outstanding achievements or made outstanding contributions in safe production. In2023, the Company set the goal of "no safe production liability accident with serious injury or death of employees throughout the year".
Safe ProductionShandong Hi-speed insists on "people first and life first". During the reporting period, the Safety Management Department revised 6management systems including the Measures for the Management of Safe Production, the Measures for the Management of Safety Funds and theComprehensive Emergency Plan for Safe Production Accidents.
The Company implements the responsibility system for safeproduction of all employees, and has signed the safeproduction Management Responsibility Letter and the Post safeproduction Responsibility Letter at various levels. At present, wehave passed GB/T 45001-2020/1S0 45001:2018Occupational Health and safe production Certification. TheCompany successfully passed OHSAS 18001 OccupationalHealth and Safety Management System Certification in2006. In August 2023, the two systems passed thesupervision certification audit again.
Shandong Hi-speed has conducted accident risk assessment and emergency resource investigation before preparingemergency plan according to the requirements of the Law on safe production and the Management Measures for Safe Production AccidentEmergency Plan, and prepared and finalized the Safe Production Accident Risk Assessment Report.
Description of units Organizations established Establish the safe production Committee.Other units
GB/T 45001-2020/1S0 45001:2018 Occupational
Health and safe production Certification
The Company actively carries out safe production inspection, which is mainly divided into comprehensive inspection and special inspection.
Risk identification and assessment
Organize and conductcomprehensive safety inspectionregularly, considering the actualwork conditions, and aiming atthe safety foundation andgrass-roots management work.
At least once a month; the annual safety inspection scope covers all unitsat the next lower level; and spot checks are arranged on grass-roots units;comprehensive safety inspection of each grass-roots unit shall not be lessthan once a month, and the monthly safety inspection scope shall cover allproduction and operation posts and places.Targeted safety inspectionarranged according to key worksuch as special safety activitiesand special period safetyguarantee.
The special safety inspection of each unit shall be organized andconducted according to the actual work conditions, and the scope ofspecial safety inspection shall cover all subordinate units participating inspecial activities.
Establish the safe production or safe productionLeading Group.High-risk production and operation units withmore than 300 employees
Comprehensiveinspection
Specialinspection
6261
Shandong Hi-speed Company LimitedEnvironmental, Social and Governance (ESG) Report 2023
All staff who find potential accidents in the workplace shall immediately report to the responsible person of the unit, thedepartment or the relevant safety competent department and production department, or report them through the "Shoot Now"APP. The Company implements the reward and punishment system for safe production reporting.Hidden danger investigationRisk category
Serious collapse of subgrade andpavement of high-grade highway, orfracture and collapse of bridge, orcollapse of tunnel, resulting inserious traffic accidents or long-termtraffic interruption.
The safety of roads, bridges and tunnels is relatedto the survival and development of the Company,and furthermore, it is related to the operation orderof the national economy, the safety of people's livesand property, and the protection of national defensereadiness. It has a wide range of influence andposes great harm upon overall assessment.A large-scale fire in the parking lotor gas station of the expresswayservice area, causing seriousaccidents such as explosion of gasstation and chain explosion of parkedvehicles (especially dangerouschemicals vehicles).
The service area is a public place with the mostdense population along the expressway, threateningpublic safety and causing serious losses to thecountry and people's lives and property. It has awide range of influence and poses great harm uponoverall assessment.Casualties and property lossaccidents suddenly occur in theconstruction process of buildings,civil engineering, electromechanicaland municipal construction.
It not only causes casualties and property losses,but also has a serious impact on the Company'sreputation and benefits.
Safety accidents in the foamaluminum production, processing,handling and other production andoperation process.
The high temperature of the production workshop,the poor working environment, and the dangerousoperations involving high-altitude operations andlifting operations will have a serious impact on thereputation and benefits of the Company once safetyaccidents occur.Fire accidents in the high-risebuildings and other places used bythe production and operation officeof the Company and all subordinateunits.
There is a high possibility of reaching a large fire.Once a large fire accident occurs, it is easy to causecasualties and property losses, and the impactrange is wide and the harm is huge.Production safety accidents in theproduction and operation processsuch as water operation, solid wastedisposal, hazardous waste disposal,food waste and kitchen wastedisposal.
The use of hazardous chemicals and dangerousoperations such as high-altitude operation andconfined space will have a serious impact on thereputation and benefits of the Company once asafety accident occurs.
Risk descriptionRisk hazard
The Company formulates the following procedures for hidden danger investigation:
Key performance
and the investment amountof safe production was
RMB 68.9million
During the reporting period,the overall hidden dangerinvestigation and rectificationrate of Shandong Hi-speedand its subsidiaries was
100%
2,379
safety emergency drillswere carried out
All units anddepartments shallcomplete therectification of theproblems and hiddendangers found in thesafety inspectionwithin the specifiedtime limit, and reportto the inspection unitor department in theform of the Report onthe Rectification ofPotential Safety Hazards.
After the rectificationof the problems andhidden dangers foundin the safetyinspection iscompleted, theinspection unit ordepartment shallrecheck the rectifiedsituation, confirm thatthe rectification isqualified, and make arecord accordingly.
The problems andhidden dangersdiscovered in thesafety inspection shallbe rectified by themain responsiblepersons of the unitsand departments towhich they belong.
The problems andaccident hiddendangers found in thesafety inspection shallbe fed back to theinspected unit ordepartment in theform of Potential SafetyHazards Rectification Noticeor inspectionnotification or on-siteinspection form.
Collapseaccidents ofroads, bridgesand tunnels inoperation
Explosionaccident ofparking lot andgas station inexpresswayservice areaSafety accidentof constructionengineeringproduction
Safety accidentsin metal rollingworks
Fire accidentin high-risebuildingSafety accidentin operation andproduction ofenvironmentalprotectionproject
6463
Shandong Hi-speed Company LimitedEnvironmental, Social and Governance (ESG) Report 2023
Case
Tunnel safety emergency work site meeting
On June 20, 2023, the Company organized the tunnel safety emergency work site meeting to watch the fire disposalvideo of Panlongshan Tunnel in Tai'an Section of Qingdao-Lanzhou Expressway, conduct warning education and study,arrange tunnel fire accident simulation responsibility check, organize tunnel emergency response drills, and furtherstrengthen tunnel emergency response capability.
Shandong Hi-speed has formulated the Comprehensive Emergency Plan for Safe Production Accidents, and set up the emergency rescueheadquarters for safe production accidents, with Chairman or General Manager as the general commander.
Shandong Hi-speed strengthens the safety management of dangerous operations of contracting, leasing and other units andforeign operation teams, and undertakes the obligation of reporting dangerous operations. For construction projects undergeneral contracting, the general contractor shall arrange unified coordination and management of dangerous operations on theconstruction site. In addition, the Company has actively promoted the informatization construction, equipped itself with safeproduction informatization related equipment, and standardized the use of safe production management information system.Emergency plan and drill
Shandong Hi-speed implements classified and graded safety training. Each unit shall formulate safety training plan every yearand organize safety training for all employees. Employees who have not passed safety training shall not work on duty.Safety education and trainingAt least one comprehensiveemergency plan drill or specialemergency plan drill shall beorganized every year, at least one drillshall be organized for all specialemergency plans every 3 years, and atleast one drill shall be organized for allon-site disposal plans every year.
Emergencypreparednessassessment atleast onceevery 3 years
Emergency rescue teams may notbe established, but part-timeemergency rescue personnel shallbe designated, and emergencyrescue agreements may be signedwith adjacent emergency rescueteams.
Companies andunits (operatingunits innon-high-riskand non-denselypopulatedplaces)
At least one comprehensive orspecial emergency plan drill shallbe organized every six months, atleast one drill shall be organized forall special emergency plans everytwo years, and at least one drillshall be organized for all on-sitedisposal plans every six months.
Emergencyplanassessment atleast onceevery 2 years
Establish a emergency rescue teamand file them according toregulations.High-riskproduction andbusiness unitsand businessunits in denselypopulatedplaces
Type Drills Emergency measures
Level Personnel type Training method
Main responsible persons and safe productionmanagement personnel of high-risk productionand operation unitsMain responsible persons and safe productionmanagement personnel of units involved inhazardous chemicals and construction
New employees of hazardous chemicals andother unitsNew employees of construction enterprises
The initial safety training time shall not be lessthan 32 hours, and the annual retraining timeshall not be less than 12 hours.The initial safety training time shall not be lessthan 48 hours, and the annual retraining timeshall not be less than 16 hours.Management
Special operation personnel
It must be carried out by a safety training institutionwith corresponding qualifications, and personnelmust obtain the special operation license issued bythe safe production supervision and managementdepartment or other relevant industry competentdepartments before they can take up its post.
All units' new employees, employees who have lefttheir posts for more than 6 months or transferredto other posts, as well as relevant employees whoadopt new processes, new technologies, newmaterials or use new equipment.
Pre-job safety education and training shall beconducted in a timely manner. The pre-job safetytraining time shall not be less than 24 classhours, and the annual retraining time for allemployees shall not be less than 12 class hours.Not less than 72 class hoursNo less than 32 class hours, and no less than 20class hours for retraining every employee every year
Number ofassessments
Newemployees
Specialoperationpersonnel
6665
Shandong Hi-speed Company LimitedEnvironmental, Social and Governance (ESG) Report 2023
Key performanceThe Company has built its own safety trainer team, and encourages other units to actively select and train internal safetylecturers from excellent backbones in their respective business fields. Each unit shall sign safety agreement with externaloperation unit, specify safety education and training requirements, and supervise safety education; educate and inform externalvisitors, study personnel, etc. about safety regulations, risks and emergency knowledge.The Company requires each unit to hold a "morning meeting" presided over by the shift leader or team leader according to thecharacteristics of production and operation, taking the first-line production and operation units such as teams or workshops as a unit.Case 1Mobilization and deployment meeting for the "Safe Production Month" activityOn June 5, 2023, the Company held a mobilization and deployment meeting for the "Safe Production Month" activity,which involved overall requirements andl arrangements for various safe production of the Company around 14 activities offour major topics. Deputy General Manager gave a lecture under the theme "Everyone cares for safety, and everyoneknows how to response to emergency".
During the Reporting Period,Shandong Hi-speed and itssubsidiaries invested a total of
RMB3,970,900
in safety education and training
Arranged1,696safety education andtraining sessions
Participated in77,279safety education andtraining sessions
Conducted training forno less than127,008 hours
The safety education andtraining coverage rate of100%
the safety risk protectiontraining coverage rate of100%
Case 2Safety management training
On June 14, 2023, the Company organized and carried out safety management training in combination with the fourthreading class of thematic education, invited external experts to give lectures on the topic of "How to effectively implement theresponsibilities of safe production subjects", interpreted the requirements of laws and regulations, learned the spirit of documentsand exchanged accident cases.
6867
Shandong Hi-speed Company LimitedEnvironmental, Social and Governance (ESG) Report 2023
Serving Customersfor Mutual Benefit andCommon Progress
Customer Rights 71Information Security 77Supply Chain Management 83
Smile service, beyond expectations,sincere and far-reaching. ——Service Concept of Shandong Hi-speed
Customer complaint process
According to the principle of "Unified management, classification and categorization, graded treatment, and return-visitevaluation", Shandong Hi-speed has formulated 96659 Service Hotline Management Measures and Complaint Handling ManagementMeasures in combination with actual work. According to the categories of information, information is divided into:
In order to give full play to the consultation, rescue and complaint functions of the travel service hotline, improve the servicequality of the hotline, establish a standardized hotline service quality inspection mechanism, provide high-quality travelinformation services, and strengthen the management of information service staff, the Company strictly implements workdiscipline and dressing standards, ensures good working conditions and establishes a favorable social image of the Company.
Customer RightsShandong Hi-speed attaches great importance to customer service and is committed to improving the modern management level ofexpressways to ensure the safety and smoothness of road operations. On June 30,2023, Shandong Hi-speed issued the Management Measuresfor Road Operation Information Release and other systems. The expressway travel information service shall follow the following principles:
When the information service staff receives the complaint information, he will ask the complainant'sname, contact information, complaint content and other relevant information in detail.When the information service staff receives the alarm information, he will ask the alarm person'sposition, direction, alarm reason and other relevant information in detail, and notifies the roadmanagement or other relevant departments in time.When the information service staff receives the inquiry information, he will answer it according to theinquiry content, and note the name and contact information of the inquirer whose inquiry cannot beanswered immediately, and reply it after investigation.
Complaint Handling Flowchart
Unified leadership andgraded responsibility
Classified managementand standardized disposal
Timely, accurate,civilized and efficient
Initiated
End
First screeningAcceptedFollow-upUndertaken
Archiving
Start
Reviewed by leaders ofsubordinate units
Reviewed by the Company's
business departments
Reviewed by thebusinessdepartment leader
Service Hotline Process
Answer the hotline
JudgmentInquiryRescueComplaintDirect handling or not
Reply laterAnswer immediately
Safety tipsPacify emotion
Record information
Record information
End of service
Is phone call transfer needed?
YesNo
TransferAnswer
No
No
Yes
Yes
Satisfied or not
Filing
No
Yes
Full-processsupervisionCase sheet
feedback
Notify dispatch and road
management staff
Whether the complaintis dismissed
Confirm the completion
of incident handling
ComplaintinformationReport andrequestinginformationInquiryinformation
7271
Shandong Hi-speed Company LimitedEnvironmental, Social and Governance (ESG) Report 2023
Digital upgradingAccording to the overall work deployment of the Company's digitaltransformation, with the overall goal of achieving "Digital ShandongHi-speed", provide digital support for building "a domestic first-classinfrastructure investment, construction and operation service provider".
Travel service emergency management
Shandong Hi-speed ensures that road operation information will be released to the outside and inside in a timely and accuratemanner in the case of abnormal emergencies and major traffic accidents, and that important events will be reported in time. InJune 2023, Shandong Hi-speed issued Emergency Plan for Public Travel Information Service Guarantee.The Company established an emergency response management leading group composed of the leaders in charge of road andbridge operation of the Company as the group leader, the main responsible persons of the Operation Division and each roadand bridge operation management unit and the responsible persons in charge, and established an emergency coordination andguarantee group for public travel information service and an emergency response group for public travel information service toundertake specific emergency response work under the leadership of the emergency response management leading group.
"Cloud-network-edge-end" integrated "NewInfrastructure" baseDigital operation capability, data service capa-bility, digital output capability
Jinan-Qingdao Expressway Digital UpgradingDemonstration Project
Key core technology innovation highland, enter-prise digital intelligence sharing demonstrationhighland, digital ecological cultivation highland, anddigital economic industry development highland
Reporting process of important events in the operation dispatching sub-center
Case 1
Work deployment of"paper-to-electronic" invoicesAccording to the national expresswaymanual toll lane "paper-to-electronic" workdeployment since February 20, 2023,Shandong Province expressway toll stationmanual toll lane (including self-servicepayment lane) will use toll electronicinvoice from then on. For toll stations thathave enabled electronic invoices, manualtoll lanes (including self-service paymentlanes) will no longer provide paperinvoices, and drivers and passengers canget electronic invoices through "ManualToll Electronic Invoice Mini Program ofShandong Province", "Ticket Stub MiniProgram" or "Changhetong APP".
Case 2CRM Management System of the Information GroupIn order to realize the digitalization of business opportunity and customer management, the Information Group hasintroduced CRM management system. The system covers basic data of business opportunities and customers, as well aswork plans, collaborative tasks, leader comments, operation logs and other data of business opportunities, forming a datasupport for scientific decision-making of business opportunities and featuring the traceability of the whole process. Withthe application of this system, the Company has realized the intelligentization of business opportunities and customeranalysis, and greatly improved work efficiency and decision-making level.
CRM Management System
Handle it according to the abnormalroad condition incident handling process
Yes
No
Reinforce thedigital "NewInfrastructure"baseImprove the"ThreeCapabilities"Build "FourHighlands"Build " OneDemonstrationProject"
Incident happens
EndData filingVerify incident information
Submit materialswithin 50 minutesIncident handlingcompletedSend incident reportevery 15 minutesReport via telephonewithin 2 minutesIs it a major incident?
The platform reportinformation within 5 minutes
7473
Shandong Hi-speed Company LimitedEnvironmental, Social and Governance (ESG) Report 2023
Customer service trainingEvery year, the Company conducts satisfaction surveys on all subordinate units and service areas of expressway transportationmanagement through internal surveys and external third-party surveys to achieve full coverage.According to the annual work plan of the Operation Division, each road and bridge operation unit formulates an annual trainingplan for its travel service business, and organizes at least one business training activity every six months:
The training includes information collection, submission and review, system platform operation, 96659hotline training, etc. After the training, the business examination is conducted, and the training plan,training courseware, sign-in form, training plan, training photos, examination questions, transcripts,training summary and other materials are summarized.Through desktop deduction, online drill, on-site drill, joint drill and other ways, the ability to deal withroad congestion, traffic accidents, severe weather and other coping capabilities will be speciallyimproved, and the drill scheme, drill plan, drill topic, sign-in sheet, drill photos, drill summary and othermaterials will be summarized.Organize information disposal, 96659 answering, complaint handling and other special or comprehensiveskills competitions, summarize implementation plans, schedules, personnel lists, competition photos,competition summaries and other materials.
Case 1The first business training of the Information Group Marketing Service Center
On May 4, 2023, Information Group launched the firstbusiness training for marketing service center centeringwith two themes: new energy technology, smart tunneland intelligent video analysis, aiming to improve thebusiness ability of all employees and promote marketdevelopment.
The First Business Training ofthe Marketing Service Center
Case 2The second business training of the Information Group Marketing Service CenterOn October 8,2023, Information Group launched the second business training for marketing service center with the themeof zero carbon intelligent expressway technology of Jinan-Qingdao Middle Line. Through this training, all employees havedeepened their understanding of the business, which is conducive to promoting the smooth development of the business.
The Second Business Training of the Marketing Service Center
Customer complaints3,655
Customer complaints resolved
3,655
Customer service hotlineresponses550,263
Customer service hotlinesatisfaction
99.77%
Customer complaintsresponse assessments
Pass rate of customer complaintresponse assessment
91.28%
Disclosure of customerinformation
SpecialtrainingSimulationdrillSkillcompetition
Key performance
7675
Shandong Hi-speed Company LimitedEnvironmental, Social and Governance (ESG) Report 2023
Information security systems and regulationsShandong Hi-speed actively adheres to the policy of "active utilization, legal management, scientific development and safetyassurance". The Company formulated the Measures for the Management of Network and Information System Security in accordance with theInternet Security Law, Data Security Law and other laws and regulations. Information Group passed ISO 27001 Information SecurityManagement System Certification, and passed the data management capability maturity assessment in May 2023, reaching the RobustLevel (level 3); in November, it passed the data security capability maturity assessment, reaching the Level 2.
In 2023, the Information Group cooperated with Shandong Weiping Information Security Evaluation Technology Co., Ltd. (WeipingCompany), which provided equal protection evaluation services according to business needs, and provided network security-relatedservices such as emergency duty, vulnerability scanning, penetration testing and website security monitoring.Information Security
Information security teamThe Company established a network security and informatization leading group, with the Chairman and General Manager serving asthe leader of the leading group.
Information security constructionIn order to consolidate the foundation of digitaltransformation and meet the development needs of intelligenthigh-speed construction, Shandong Hi-speed has built ahigh-speed cloud data center and timely expanded accordingto business needs. The construction of high-speed cloud datacenter provides sufficient computing resources for keyconstruction projects such as "Digital Penetration Project","Smart Brain", "Smart Expressway" and "Highway No.1", meetsthe innovative application needs of mobile Internet, cloudcomputing, big data, Internet of Things and other fields, andopens up the "information tunnel" of the transportationindustry. After expansion, the high-speed cloud data centerhas 103 cabinets, which can provide 19,018 CPU cores, 51,104G memory, 1,396 T efficient cloud disk, 389T object storage,and 116T SSD efficient cloud disk. At present, the CPUallocation rate of high-speed cloud data center is 53.71%, thememory allocation rate is 67.95%, the actual utilization rate ofCloud Block Storage is 40.04%, and the actual utilization rateof SSD is 4.9%.
ISO 27001 CertificationData Management Capability Maturity Robust Level (Level 3)Data Security Capability
Maturity Level Certificate
High-speed Cloud Data Center Security Incident Situation Large Screen
Safety emergency planIn 2023, the Information Group formulated the Cyber Security Emergency Plan, which divided cyber security incidents into eightcategories and four levels, and established a leading group for cyber security work to coordinate the emergency response workof cyber security incidents, with an office in charge of daily affairs. This is to strengthen information security management,prevent and resolve all kinds of information security risks, and ensure the normal operation of business and data security.
FirstlySecondlyThirdlyFinally
Arrange regular gradeassessment in strictaccordance with graderequirements, andperform safetyrectification for systemsthat fail to meet safetyprotection graderequirements
Conduct vulnerabilityscanning and securityhardening of informationsystems on a regularbasis, update maliciouscode libraries and systempatches in a timelymanner, and conductpenetration tests onimportant informationsystems at least once ayear
Strengthen the securitymanagement of authority,account and password,and avoid system securityproblems such as weakpassword, clear passwordand unauthorized accessthrough technical andmanagement measures
Establish a safetymanagement systemand operatingprocedures covering allaspects of network andinformation systemoperation, maintenanceand use, and implementnetwork securityprotectionresponsibilities
Cyber Security Incident Classification
Harmful program
incident
Network attack
incident
Information destruction
incident
Information content
security incidentEquipment and
facility failure
Catastrophic
incident
Internal potential
threat incident
Other information
security incident
7877
Shandong Hi-speed Company LimitedEnvironmental, Social and Governance (ESG) Report 2023
During the reporting period, the Company continued to improve its information security protection capability and strengtheninformation security control through training and publicity activities, daily network security inspection and hardware security inspection,network security assurance during the Spring Festival and network security re-protection during the 20th National People's Congress,so as to lay a solid foundation for the safe operation of information systems.
Level Severity ColorJudgment criteria
New network and information security threats are discovered, which may affect allnetworks and critical information systems within the global scope and have thepossibility of spreading to the global.The loss or theft, tampering and counterfeiting of state secret information,important sensitive information and key data pose a particularly serious threat tonational security and social stability.
New network and information security threats are discovered, which may affect allservices of the basic network or more than two important information systems inthe global scope, and may continue to spread.The loss or theft, tampering and counterfeiting of state secret information,important sensitive information and key data pose a serious threat to nationalsecurity and social stability.
New network and information security threats are discovered, which may affect allservices of 1-2 basic networks or 1-2 important information systems in the globalscope, without proliferation.The loss or theft, tampering and counterfeiting of state secret information,important sensitive information and key data pose a serious threat to nationalsecurity and social stability.
New network and information security threats are discovered, which may affectpart of the network of a certain basic operator or part of the business of 1-2important information systems in the global scope, without proliferation.The loss or theft, tampering and counterfeiting of state secret information,important sensitive information and key data pose a certain threat to nationalsecurity and social stability.
Level I Red
Level II Major Orange
Level III Larger Yellow
Level IV General Blue
Especiallyserious
Emergency Response Process
Incident happens
The duty teampreliminarily judgeswhether it is a networksecurity incidentTransfer the incident toother relevantfunctional departmentsfor handling
Handle according to theresponse measures ofthe corresponding levelincidentsIncident fieldpersonnel report tothe duty team
End of response
Incident investigationand assessment
Restore systemoperationPrepare incidenthandling reports
YesNo
Case 1High-speed Cloud Data Center fire emergency drill
On May 9,2023, Information Group organized and carried out fire safety emergency drills. Through this activity, the abilityof employees to deal with emergency emergencies and the actual operation ability of fire fighting equipment wereimproved, laying a solid foundation for further data security.
Fire emergency drill
8079
Shandong Hi-speed Company LimitedEnvironmental, Social and Governance (ESG) Report 2023
Case 2Information Group's Network Security Publicity Week
In order to promote the concept of network security, popularize network security knowledge and promote networksecurity skills, from September 11 to 17, 2023, the Information Group launched various network security publicity weekactivities and invited a number of senior experts for training. Through this activity, all employees enhanced theirawareness of network security and prevention, and improved their network protection skills.
BrochurePromotional Video in ElevatorsInformation Security Awareness Training
User data protectionShandong Hi-speed follows the principle of "Whoever collects information is responsible for protection", strengthens userinformation security, establishes "Shandong Hi-speed Operation Data Classification Management Platform", adopts different dataprotection strategies for data with different importance and sensitivity, meets data risk management, compliance and securityrequirements, and improves the security level of operation data.When collecting and using personal information, each unit and department shall take the following measures:
···
Road network traffic
In order to obtain the data of motor vehicle flow, vehicle type and vehicle speed of expressway, Shandong Hi-speed realizesin-depth mining, aggregation and visualization of historical data and real-time data based on distributed multi-node database,deeply detects the traffic flow and flow direction of road network, accurately locates abnormal data of equipment,comprehensively monitors the road network status from link and business levels, finds abnormal traffic flow and ensures theoperation safety of road network.The Company’s traffic analysis system is mainly divided into three parts: basic data management module, data visualizationmodule, data analysis module.
Road Network Traffic Analysis System
Information securityand privacy training(No.)
Number of participantsin training(Person)
3,485
Total investment in datasecurity(Ten thousand RMB)
186.14
Information security andprivacy violations(No.)
Road Network TrafficAnalysis SystemData managementLarge-screen display
Data analysis
Cylinder diagram
dataPortal dataCharging unit
Ramp dataEquivalentconversionRoad ownership
detailsLane details
Holidaymanagement
Traffic overview
Road networkcylinder diagramTraffic directionHoliday statistics
In-transitmonitoring
Track playback
Travel judgment
Vehicle source
analysis
Vehicle source
composition
Single point
Multipoint trafficanalysisTraffic analysis24H summaryTraffic map
Data comparison
Key performanceThe rules of collection and use shall be made public, and the purpose, method and scope of informationcollection and use shall be clearly stated, and the consent of the collected person shall be obtained.Do not collect personal information unrelated to the services provided, and do not collect, use or processthe stored personal information in violation of laws, administrative regulations and agreements betweenthe parties.Necessary measures should be taken to prevent information leakage, damage and loss. In the event ofinformation leakage, damage or loss, remedial measures shall be taken immediately, and users shall beinformed and reported to the Company in a timely manner in accordance with regulations.
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Shandong Hi-speed Company LimitedEnvironmental, Social and Governance (ESG) Report 2023
Supplier auditAfter project approval, the Company shall issue procurement announcement to publicize supplier qualification requirements(including qualification requirements, performance requirements, reputation requirements, personnel requirements, etc.). Theevaluation team shall conduct preliminary evaluation on response documents, and reject the quotation qualification of supplierswho do not meet the requirements.
Supplier evaluation
The Company carries out graded assessment on suppliers by means of daily assessment and annual assessment, and theassessment results are incorporated into the annual assessment system. The purchaser shall be responsible for organizing theproject review. The assessment work shall be implemented at different levels, and daily assessment and annual assessmentshall be adopted, and the assessment results shall be incorporated into the annual assessment system.
Supplier ESG management
For the bidding and procurement process of engineering construction projects, the Company puts forward specific requirementsin the bidding documents to ensure the performance of suppliers in safety, quality and environmental protection. Theserequirements include daily supervision of migrant workers' wages (labor costs), rules and regulations on safe productionmanagement, safety inspection procedures and construction safety management requirements, and instructions from theSupervisor on safe production. In terms of environmental protection, the contractor must strictly abide by relevant nationalenvironmental protection laws and regulations and relevant industry standards, and make clear regulations on reducingconstruction noise, suppressing dust and avoiding pollution of water bodies.
Responsible procurementShandong Hi-speed stipulates that the units and personnel engaged in procurement activities shall abide by relevant laws andregulations and the rules and regulations of the company and their own units, abide by discipline, be honest andself-disciplined, earnestly perform their duties, and shall not neglect their duties, abuse their powers or engage in malpracticesfor personal gain, and shall not illegally interfere in procurement activities in any way. The supplier shall sign an integrityagreement and require the supplier to provide in the response document a letter of commitment that the supplier unit, legalrepresentative and key management personnel to be appointed in the response document have not committed bribery crimesin the past three years, and the evaluation team shall sign a letter of avoidance confirmation.
Supply Chain ManagementShandong Hi-speed follows the principles of openness, fairness, justice and honesty and credit in supply chain management,and has formulated supplier management systems such as Bidding Procurement Management Measures and Non-bidding ProcurementManagement Measures. The Company's bidding procurement leading group (sunshine procurement leading group) is the highestleader and decision-making body of the Company's bidding work, and the Chairman of the Company is the group leader.
CaseInformation Group's integrity procurement trainingThe Information Group insists on integrity in procurement, requires suppliers to sign integrity contracts, strengthens thesupervision and inspection of procurement activities throughout the process, ensures the compliance and transparency ofprocurement activities, and improves the integrity awareness and professional ethics of all employees through measuressuch as integrity education and training activities, laying a solid foundation for the steady development of the Company.
Key performance
Total number ofsuppliers
Total number ofsuppliers3,636
Suppliers in ShandongProvince
Suppliers in the mainland of Chinaexcept Shandong Province
Suppliers in the mainland of Chinaexcept Shandong Province
Suppliers in ShandongProvince
2,947
2022
2023
8483
Shandong Hi-speed Company LimitedEnvironmental, Social and Governance (ESG) Report 2023
Caring for Employeesand Making Togetherfor the Future
Labor Relations 87Career Development 92
Welfare and Care 95
Making use of every man's talentaccording to his actual conditions. ——Talent Concept of Shandong Hi-speed
Employee recruitment and employmentShandong Hi-speed strictly abides by the Labor Law, Labor Contract Law and other laws and regulations, safeguards the legitimaterights and interests of laborers, formulates internal systems such as the Measures for the Management of Employee Recruitment and theRegulations on the Management of Labor Relations, adheres to the labor employment standards of equality between men and women,equal pay for equal work and non-discrimination, constructs the employee rights and interests guarantee system, and builds asolid talent foundation for the sustainable development of the enterprise.The Company follows the rules of fixed posts and fixed staffing, and adopts the forms of campus recruitment and socialrecruitment in accordance with the principle of "openness, equality, competition, and merit". In the process of recruitment andemployment, the Company strictly screens employees' personal identity information, implements the management requirementsof full-time labor contract system, and eliminates illegal employment behaviors such as child labor and forced labor from thesource.In 2023, the signing rate of labor contracts of the Company was 100%, and the social insurance coverage rate was 100%.
Employee compensation and benefitsIn order to standardize the Company's salary management, improve the Company's internal incentive and restraint mechanism,improve the Company's core competitiveness, comprehensively and truly evaluate employees' job performance, ensure that theCompany's development strategic objectives are effectively decomposed and fully implemented in specific work, and achievethe goal of fully integrating the work process and performance management throughout the cycle, and continuously improvingwork efficiency and effectiveness, the Company has formulated the Employee Compensation Management System and the EmployeeAssessment Method, which linked the benefits of employees and the Company and may increase and decrease the same, andfollowed the principle saying "Pay by post, salary change by post, equal pay for the same post, priority for efficiency,consideration for fairness, implementation of assessment results, and more pay for more work."The employee performance appraisal index system consists of KPI and CPI, which is based on quantitative analysis andsupplemented by qualitative analysis to form a comprehensive conclusion of employee performance appraisal, wherequantitative analysis and qualitative analysis complement each other.
Labor Relations
Others 76
Total number of employees 10,805Number of employees with disabilitie 42
Number of ethnic minority employees 132
Female 3,392Male 7,413
Doctor 6
Master 922
Bachelor 5,949Junior College 2,916Below junior college 1,012
Production 6,360
Sales 174Technical 2,674
Financial 203Administrative1,318
Ratio of male
to femaleemployees
Male 68%Female 32%
Production 67%Technical 28%Sales 2%Financial 2%Administrative 1%Others 0%
Number of minority employees202120222023
202120222023
Number of employees with disabilities
Employee compositionNumber of employees by education
Number of employees by genderNumber of employees by discipline
Percentage ofemployees' discipline
8887
Shandong Hi-speed Company LimitedEnvironmental, Social and Governance (ESG) Report 2023
The assessment results are divided into four grades A, B, C and D according to the results. According to the EmployeeCompensation Management System formulated by the Company, they are applied to the payment of performance salary, adjustmentof rank (grade), selection of excellent talents and renewal, termination and cancellation of labor contract. They are also used asthe condition for evaluation of employees' performance.
On the basis of strict implementation of national statutory benefits, the Company effectively promoted independent welfarepolicies, including enterprise annuity, supplementary medical insurance, on-the-job training, health examination, food subsidies,heating fees, childcare fees, etc., further enriching the employee welfare system.The Company has formulated and implemented the Regulations on Attendance and Leave Management. For overtime work due to workneeds, we will arrange equal time off in the year to ensure the balance between work and life of employees. In addition,besides national statutory holidays, we also provide marriage leave, funeral leave, annual leave, Spring Festival home leave andother paid holidays, so that employees can better handle personal affairs and enjoy their life.
Employee satisfaction surveyShandong Hi-speed conducts employee satisfaction surveys through various channels every year to fully understand employees'demands and actively respond to employees' opinions and suggestions. The Company conducts interviews with employeesthrough inspection and special inspection to understand their job satisfaction, record their problems in detail, form a list ofproblems and propose solutions. Moreover, we will also hold seminars such as youth employee seminars to listen to theopinions and suggestions put forward by employees and deal with them.
Employee assessmentDailyassessment
Quarterly assessment is the main method, which can be refined into monthly assessment, focusing on theperformance of post responsibilities and completion of work tasks.
Annualassessment
The comprehensive reflection of each quarterly (monthly) assessment can be taken as the annualassessment score based on the average score of daily assessment, or linked with the annual key tasks anddepartment achievements as the annual assessment score based on the daily assessment score.
Employee Compensation CompositionFixedsalary
It is linked to the position, position value, ability,working years and service contribution to the countryand the enterprise of employees.Floatingwage
It is linked to the Company's operation and theperformance appraisal of individual employees.
Equity incentiveAugust 10, 2020May 31, 2021August 2, 2022July 12, 2023
The first grant registration of stock options was completed, with 43.2 million shares grantedfor the first time and 206 people granted for registration.The registration of reserved shares of stock options was completed, with 4,663,700 reservedshares registered and 34 people registered for reserved shares.Completed the first exercise by the first granted persons, with a total of 16,046,600 shareslisted and circulating, and a total of 195 exercising persons.Completed the exercise of the second exercise period granted for the first time and reservedfor the first exercise period, with a total of 13,185,200 shares listed and circulating (11,399,800shares granted for the first time and 1,785,400 shares reserved for grant), and a total of 222exercising persons (189 granted for the first time and 33 reserved).
Paid leave days per capita202120222023
9.34
9.86
13.7
In 2023, the Company's employee satisfaction rate was 100%, and the survey participation rate was 100%.Key performance
9089
Shandong Hi-speed Company LimitedEnvironmental, Social and Governance (ESG) Report 2023
Democratic managementShandong Hi-speed has always been committed to creating an open and transparent working environment, providing smooth, effective andreasonable communication channels for employees, and ensuring employees' right to know and participate in the Company's operation andmanagement. We have established a Labor Union to safeguard the legitimate rights and interests of the broad masses of employees, regularlyconvene employee representative conferences, listen to the opinions and suggestions of employee representatives on the development of theCompany, and actively promote democratic management. Our goal is to enable each employee to maximize their personal value by giving fullplay to their abilities in a fair and just environment.The Company attaches importance to opinions andfeedback from employees, unblocks employeecomplaints and feedback channels, actively listens toemployees' voices, and safeguards employees'legitimate rights and interests. Employees who haveobjections to the salary and performance appraisalresults may appeal to the HR department of the unitwithin the publicity period. The relevant departmentsof the company will investigate the employeecomplaints and put forward investigation opinions toform an investigation report. If the complaint is true,the employee can be re-assessed or re-revisedassessment results, and relevant responsible personput forward handling opinions. If the employee is stilldissatisfied with the handling result, he/she maylodge a complaint again, and the Company willensure that the employee's claim is resolved.
Case
The Company held the sixth session of the third employee(Labor Union member) congressOn January 30, 2023, the Company held the sixth session ofthe third employee (trade union member) congress, 2023Working Meeting and Safe Production Conference to reviewand summarize the work in 2022 and arrange and deploythe tasks in 2023. At the meeting, the Chairman summarizedand reviewed the remarkable achievements made by theCompany in the past year and made arrangements for theCompany's work in 2023. The General Manager made the2022 annual work report on behalf of the managementteam. The Deputy Secretary of the Party Committeeconveyed the spirit of the fourth employee (trade unionmember) congress and 2023 annual work conference of theGroup. The Secretary of Discipline Inspection Commissionread out the resolutions of the employee (Labor Unionmember) congress, and the Deputy General Manager readout relevant commendation decisions.
Employee (Labor Union Member) Congress
Employee training management system
Shandong Hi-speed adheres to the talent concept of "Making use of every man's talent according to his actual conditions",attaches great importance to employee training, continuously activates employee vitality, and provides all-round vocationaltraining and guidance for employees at different positions and levels. The Company formulated and improved the Staff TrainingManagement Measures to help employees keep learning and making progress and realize the unity of individual and Companydevelopment.The Human Resources Department of the Company is the centralized management department of employee training,responsible for establishing the Company's training system, covering four basic categories: internal training, external training,induction training for new employees and training for personnel of special types of work. The training content involvescorporate culture, company management rules and regulations, work specification requirements, job responsibilities,professional technical knowledge, etc. The Company training takes "Business training, knowledge learning, ability improvement"as the carrier, and guides and helps employees to enrich professional knowledge, improve professional ability, developprofessional style and cultivate professional spirit through centralized training, business competition, online learning,examination and other diversified forms under the principle of "Precisely-targeted training and exercise". In practice, theCompany has developed and discovered a number of "business backbones" and "post experts" and expanded the professionaltalent team. During the year, the Company's employee training coverage reached 100%.
Shandong Hi-speed fully considers the individual career development aspirations and wishes of employees, provides rich anddiverse training resources and job opportunities, continuously improves the overall quality of employees, fully releases thedevelopment vitality of the Company, and lays a solid talent foundation for the long-term development of the Company.
Career Development
In 2023, the Company held2,633
employee training sessions
With a total number of10,805
persons trainedAn average of
76.12hours
of training per capita
A total training investment of
RMB10,000,300
A total training duration of
822,436hours
Key performance
9291
Shandong Hi-speed Company LimitedEnvironmental, Social and Governance (ESG) Report 2023
Case 2Logistics trainingIn order to further improve the work style of the organsand improve the quality of administrative and logisticservices, in September 2023, the Company heldlarge-scale training and competition event foradministrative and logistic works. The Secretary of theBoard of Directors of the Company, the Office, and theheads of the comprehensive management departmentsof 32 subordinate units, the vehicle staff, the driversand the cook representatives participated in the event .The event arranged theoretical examination and twopractice contests for drivers and cooks. Senior expertswere invited to conduct training on vehicle safety, foodsafety and gas safety. Through this training, theprofessional ability level and work enthusiasm of theparticipants were further improved.Administrative and Logistic Work Training
Talent development goals and planningShandong Hi-speed systematically analyzes and grasps the current situation of human resources in combination with businessneeds to determine talent needs and gradually establish a long-term mechanism for talent supply and demand evaluation.
Training evaluation andassessment mechanismIn order to ensure the training effect, Shandong Hi-speedhas established and improved the training evaluation andassessment mechanism. On the one hand, the HumanResources Department of the Company will consider theannual training items as the assessment contents in theannual operation performance appraisal; on the other hand,the Company requires all units and departments to reviewthe overall implementation of the activities after the trainingactivities, comprehensively summarize the practices,experiences and achievements of the activities, carefullysort out and analyze the deficiencies and problems existingin the implementation of the activities, and form asummary of the training activities. The Human ResourcesDepartment of the Company will propose improvementsuggestions according to the summary of activities.In addition, the Company will select internal trainers at alllevels based on the principles of fairness, impartiality,openness and objectivity to provide excellent lectureresources for the Company's training activities andempower employees' career development.
Career advancement and development
In order to further strengthen the standardized management ofthe Company's positions, establish a scientific and unifiedposition management system, and provide employees withmulti-channel career development paths, the Company hasformulated internal systems such as the Position ManagementMeasures, Employee Development Channels and Internal Position Adjustment,and established three job categories, i.e., management,technology and skills, to provide equal promotion opportunitiesfor employees of different types and specialties.The Company's rank system consists of 18 ranks, 26 grades, withclear qualification standards and promotion paths, forming asystematic framework with clear and standardized operation. Inaddition, the Company has continued to deepen the constructionof dual career development channels to ensure that employeeshave sufficient development space and opportunities, andmaximize the professional expertise of various talents.Furthermore, the Company has further optimized the careerpromotion channels of employees by organizing and carrying outindependent evaluation of skilled talents in various road andbridge operation units in the province.
Case 1Induction training for new employees
In order to help the new campus recruits in 2023 to clarify the company strategy, integrate into the corporate culture andaccelerate the completion of role transformation, from August 9 to 11, the Company organized the induction training fornew employees, and a total of 32 new employees from each subsidiary and the operation management centerparticipated in the training activities. During the training period, the Company invited experts from relevant industries toteach a series of courses such as "happy entry password", "don't let communication become your barrier", and "innovativethinking and innovative management" for new employees; the Board Secretary Office, Investment ManagementDepartment and Human Resources Department of the Company taught on the Company's corporate culture, "14thFive-Year Plan" development plan, human resources system, etc.
Induction Training for New Employees
Talent development goals and planningEstablish talent bigdata systemDynamic analysis oftalent demandTalent classificationand assessmentStrengthen the constructionof reserve talent team
Integrate the talent data of each unit, establish a unified and complete personnelinformation database and convenient and efficient classified query channels, improve theinformatization, refinement and efficiency of talent management, and ensure the scientificand accurate talent decision-making of the company.Each unit shall regularly put forward the demand plan and specific requirements forrelevant talents to the Company in combination with the actual business development andmedium and long-term planning.For talents of different levels and categories, we should classify and assess the talentneeds and make reasonable responses.Establish a regular reserve talent selection mechanism and always have a certain numberof reserve personnel.
Key performance
In 2023,
14.68%
of positions were filled throughinternal transfer or internal recruitment
employees weretransferred internally
2.17%
of employeestransferred internally
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Shandong Hi-speed Company LimitedEnvironmental, Social and Governance (ESG) Report 2023
Percentage of women amongmanagement staff
17.62%
Return rate aftermaternity leave100%
Return rate afterparental leave
100%
Number of employees takingparental leave
Proportion of womenamong technical staff
29.15%
Number of employeestaking maternity leave
Worker's Home
In order to enhance the sense of identity, belonging and happiness of grass-roots employees, truly feel the warmth of "home"and create a harmonious and positive atmosphere, the Labor Union of Shandong Hi-speed actively organizes all units to launcha "Worker's Home" campaign. This campaign played the role of Labor Union's organization in concentrating and servingemployees, and built a warm home for the majority of employees. In such a campaign, employees not only felt the warmth ofhome, but also enhanced their cohesion and sense of belonging.
Care for employeesThe Company attaches great importance to the protection of the rights and interests of female employees, strictly abides by theLaw on the Protection of Women's Rights and Interests and other laws and regulations, strengthens the protection and leave offemale employees during pregnancy, childbirth and lactation, etc. In addition to statutory benefits, the Company also providesbenefits for female employees in childbirth and leave, and organizes activities with the theme of Women's Day at least once ayear to facilitate the life and work of female employees. At the same time, the Company also attaches importance to thebalance between work and life of employees, actively organizes various cultural activities and sports events, enriches the sparetime life of employees, promotes the physical and mental health of employees, and enhances the cohesion and team identity ofemployees. We have enhanced employees' sense of belonging by creating a united and harmonious working atmosphere.
Welfare and Care
Laixi Toll Station's "Small Home" for Employees
Case 1"Unity Cup" Basketball GameDuring the reporting period, the "Unity Cup" employeebasketball competition hosted by Shandong Hi-speedGroup was successfully ended. During the competition, thevolunteer service team composed of the Beijing-ShanghaiJi'nan Operation Management Center of the Companyprovided all-round game services for each participating unit,and made every effort to ensure the competition, winningunanimous praise from the referee group and eachparticipating unit. This basketball game not only enrichedthe sports life of employees, but also promoted the spirit ofunity and cooperation among employees, showing theCompany's positive, united and cooperative enterprise spirit.
Case 2Fun Sports Game
On August 4,2023, the Labor Union of Beijing-ShanghaiJi'nan Operation Management Center held the funsports game of "Passion · Burning Jilai". This fun sportsgame set up five competitions: "rope skipping","shuttlecock kicking", "running with ball", "hula hoop" and"plank", which not only test individual sports competitionlevel, but also test team cooperation ability. At thegame, everyone followed the principle of "Friendshipfirst, competition second", demonstrating the spirit ofunity and cooperation and "bravely climbing the peak"among employees. This game not only enriched thespare time life of the staff, but also inspired the tenacityof the staff to face difficulties, laying a good spiritualfoundation for their work in the future.
Case 3 "Warm Winter" Activity
In order to actively practice the spirit of the 20thNational Congress and give full play to the bridge role ofLabor Union, on the occasion of the Spring Festival,various forms of "Warm Winter · Warm Expressway"consolation activities were arranged to reach allfront-line employees and employees in difficulty of theCompany, letting the Company act as employees' "familymembers" and do "warm things" for the grassroots staff.This condolence activity reflected the humanistic care ofthe Company for employees, made employees feel thelove of the Company, and strengthened the cohesionand sense of collective of employees.Weilai Operation Management Center distributed milk,eight-treasure porridge, insulated lunchboxes and otherconsolation products to each grass-roots station, sentSpring Festival blessings to the staff, and paid specialvisits to 4 hospitalized and needy-family workers.
Case 4Spring Festival Activities
In order to fully show the new life, new fashion, newlook of the times, and form a healthy, progressive,civilized and harmonious festival atmosphere, theCompany organized civilized Spring Festival activitiesthrough the Labor Union, encouraged employees toparticipate voluntarily, refine their personal quality in theactivities, feel happy in the games, and also developteam spirit and cooperation ability in the activities.
Worker's Home of Dezhou Toll Station
Protection of Women's Rights and Interests
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Shandong Hi-speed Company LimitedEnvironmental, Social and Governance (ESG) Report 2023
Giving Back to Societyand Practicing PublicWelfare
Local Development 99Public Welfare Undertakings 100
Happy Travel Together,Working Hard Together.
——Team Concept of Shandong Hi-speed
Shandong Hi-speed Company LimitedEnvironmental, Social and Governance (ESG) Report 2023
Case 1Construction of steel structure workshop
In 2023, the Company, together with other first secretaries,and through local government's active communicate andcoordination, invested RMB 1.65 million in the steel structureworkshop of Heze Zhongding Renewable ResourcesRecycling Co., Ltd. The workshop covers an area of 2,600square meters and aims to help enterprises increaseproduction and expand capacity. This move will bring stablevillage collective income of RMB 132,000 per year, furtherpromoting the development of poverty alleviation work.
Case 2Investment in infrastructure
In order to promote rural revitalization and rural economicdevelopment, the Company invested RMB 250,000 to built10 new motor-driven wells in the basic farmland of JiazhaiVillage, erected 24 poles and laid 4,000 meters of cables.We also provided 10 sets of power distribution cabinets andsubmersible pumps that can pump water by swiping cards,solving the irrigation problem of more than 700 acres ofbasic farmland. These measures have laid a good waterconservancy infrastructure to ensure a bumper harvest ofgrain and made positive contributions to rural revitalizationand rural economic development.
Case 1Voluntary activities on expressway
During the reporting period, in response to the sharpincrease in traffic volume during the Labor Day period,Jinan-Laiwu Expressway organized a youth volunteer serviceteam at stations along the route. In order to improve theholiday travel experience of drivers and passengers, the tollstation youth volunteer service team set up "convenienceservice" post station in the toll square, with "three boxes andone bucket" (medicine box, toolbox, suggestion box,insulation bucket), providing mineral water, hot water,medicine, car repair tools, wet tissue and other supplies 24hours a day, and installing ETC equipment free of charge.We set up a "paper-to-electronic" invoice consulting servicepoint to guide drivers and passengers to quickly drawelectronic invoices one by one; promoted the "Changhetong"APP to drivers and passengers, popularized the functions ofthe "Changhetong" APP, such as travel navigation, release ofgoods source info, one-click rescue, pass code (even if theroad is closed), and publicized the May Day Holiday travelstrategy through information boards, WeChat officialaccount, etc., so as to provide quick help for the public todrive on the expressway safely and show the image of apromising youth enterprise in the new era.During the festival, a total of 126 road inspections were carriedout, with a patrol mileage of 6,080 kilometers and 48 obsta-cle-clearing rescues, so as to ensure the safe travel of the public.
Supporting local developmentShandong Hi-speed has been continuously strengthening its investment in rural revitalization. During the reporting period, the companyactively participated in rural infrastructure construction, helped rural areas improve their living facilities and industrial facilities, andeffectively promoted rural economic growth and income increase through various ways such as poverty alleviation through industrialdevelopment, employment, and education.
Local Development
As a responsible corporate citizen, Shandong Hi-speed pays close attention to the well-being of people's livelihood. During thereporting period, the Company actively acts in social welfare. The Company encourages employees to participate in activities such asvolunteer service and sympathy for villagers during holidays, develops employees' awareness of social welfare, and demonstrates theCompany's sense of social responsibility.
Public Welfare Undertakings
In 2023, the Company's social contribution value per share is RMB 1.84Key performance
10099
Shandong Hi-speed Company LimitedEnvironmental, Social and Governance (ESG) Report 2023
Case 2Visit and assistance activitiesBefore the Spring Festival, the Company visited all Party members and needy people in Jiazhai Village, distributed consolationarticles and epidemic prevention materials to children and needy people, discussed vegetable pest control with villagers inJiazhai, and visited villagers' homes to understand village conditions and public opinions.
Case 3 "Joining Hands to Revitalize the Roads, with Full Love for Wulong" ActivityThe Company actively responded to the theme series activities of"Joining Hands to Revitalize the Roads, with Full Love for Wulong"and donated RMB 20,000 to the Rural Revitalization Foundation ofWulong District in Chongqing City. This move aimed to supportWulong difficult areas and people in difficulty to improveproduction, living and health conditions, improve their quality andability, achieve common prosperity, achieve a well-off life andachieve sustainable development. Besides, we were also honored toreceive the Certificate of Honor for the East-West CollaborativeRural Revitalization Activities in recognition of our contribution torural revitalization.
Case 4"Warm Sunset" Project helping the elderly
In order to further improve the old-age service system and strengthen the rescue and assistance for the elderly in urban andrural areas, the Company actively responded to the Charity Federation of Shandong Province, launching the "Warm Sunset"project to help the elderly since 2022, donating RMB 1 million every year for 4 consecutive years, with a total donation of RMB 4million. The project will provide assistance to disabled elderly people with economic difficulties in 39 counties/districts/cities inthe Yellow River Basin and 20 key counties for rural revitalization, with about 47,000 recipients. Donated funds will be used toprovide care services for disabled elderly people, subsidize disabled elderly people in difficult circumstances to afford nursinginstitution for the aged and provide other aspects of relief and assistance.
Case 5 "Charity Day Donation"In 2023, Shandong Province Charity Federation organized the activity of "Charity Day Donation" to raise funds for charityprojects such as helping the poor, helping doctors, helping students, helping the elderly, and helping the disabled. ShandongHi-speed actively responded to the call and mobilized employees to make donations. The employees actively participated in itand carried forward the traditional virtue of helping others with practical actions, with a total donation of RMB 416,400.
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Shandong Hi-speed Company LimitedEnvironmental, Social and Governance (ESG) Report 2023
Dear readers,Thank you very much for reading this report. We appreciate and look forward to hearing your feedback on this report. Yourcomments and suggestions are an important basis for us to continuously improve the disclosure of ESG information andpromote our ESG management and practice. We welcome and sincerely thank you for your valuable comments!
1. Your overall assessment of our ESG performance is:
□ Very good □ Good □ Fair □ Relatively Poor □ Poor
2. Your overall assessment of this report is:
□ Very good □ Good □ Fair □ Relatively Poor □ Poor
3. How do you think we are doing in terms of communication
with stakeholders?
□ Very good □ Good □ Fair □ Relatively Poor □ Poor
4. How do you think we are doing in terms of product
responsibility?
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AppendixesIndex of Indicators
Feedback Form
Level-1 headings Level-2 headings Global Sustainability Reporting Standards （CASS-ESG 5.0)
About This Report 102-46/102-50/102-52/102-53/102-54 P1.1/P1.2/P1.3/G3.7Message from Chairman 102-14 /
Company Profile 102-1/102-3/102-6/102-7 P4.1/P4.4
Business Areas 102-2 P4.3
Development Course / /
Corporate Culture / P4.2
Honors and Awards / /
102-29
P2.1/P2.2/P3.1/G2.1/G2.2 /G2.3/G3.1/G3.2/G3.3/G3.11 / / 102-40/102-44 G3.6 102-47 G3.5 / /
102-15/102-18/102-22 G1.1/G1.2/G1.3/G1.4/G1.10
/ / 102-16/205-2 G1.5/G1.6/G1.7
/ E1.1/E1.2/E1.3/E1.4/E2.14
302-1/302-4/302-5 E2.2/E2.4/E2.9/E2.10/E2.12 303-1/303-2/303-4 E3.1/E3.2/E3.5/E3.6/E3.8
/ V2.1/V2.2/V2.3/V2.4
/ S4.1/S4.2
/
S3.1/S3.2/S3.4/S3.5/S3.6/ S3.7/S3.8/S3.9
Customer Rights / S4.5/S4.7/S4.8
Information Security / S5.6
102-9 S5.2 102-8/405-1
S1.1/S1.2/S1.3/S1.4/S1.5/ S1.6/S1.7/S1.8/S1.9 404-1 S2.1/S2.2/S2.3/S2.4 401-2 S1.10
203-1 V1.2/V3.1/V3.3
/ V3.4/V3.6/V3.7
102-55 A4 / A5
5. How do you think we are doing in terms of environment,
safety and occupational health?
□ Very good □ Good □ Fair □ Relatively Poor □ Poor
6. How do you think we are doing in terms of employee
responsibility?
□ Very good □ Good □ Fair □ Relatively Poor □ Poor
7. How do you think we are doing in terms of ESG?
□ Very good □ Good □ Fair □ Relatively Poor □ Poor
8. Do you have any comments and suggestions on our ESG
performance and this report?
Guide to Corporate SocialResponsibility Reporting in China（GRI Standards）
Level-1 headings Level-2 headings Global Sustainability Reporting Standards （CASS-ESG 5.0)
Guide to Corporate SocialResponsibility Reporting in China（GRI Standards）
ESGGovernance SystemSustainableDevelopment GoalsStakeholdersCommunicationAnalysis ofSubstantial IssuesCorporateGovernanceParty Building'sLeading RoleEnvironmentalProtectionUtilization ofResources"Three Wastes"Management
Supply ChainManagement
CareerDevelopment
Public WelfareUndertakingsFeedback FormIndex of Indicators
Welfare and CareLocal Development
Labor Relations
Innovative R & DProduct QualitySafe Production
Business Ethics
ESGManagement
AboutShandong Hi-speed
Governance First,Depending onComplianceOperation toPromoteDevelopmentGreen Water andGreen Mountains,Protecting theEcologicalBackground Color
Serving Customers,for Mutual Benefitand CommonProgressCaring forEmployees andMaking Togetherfor the FutureGiving Back toSociety andPracticing PublicWelfareAppendixes
Innovation-driven,Safe Production forQuality Assurance
Responding to the "Carbon Peaking and CarbonNeutrality" Goals, and Building Low-Carbon Highways
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Shandong Hi-speed Company LimitedEnvironmental, Social and Governance (ESG) Report 2023