ESG Report
2017 ESG Report Climate-Related Financial Disclosure Report In December 2023, ENN Energy released its first climate-related financial disclosure report. This report aims to demonstrate the Company's attention to climate change issues and its determination to actively address climate-related risks and seize climate-related opportunities, in response to the requirements and expectations of regulators, the capital markets, and stakeholders for climate-related financial disclosure. In this released climate-related financial disclosure report, ENN Energy provided a detailed overview of the impact of its Governance, Strategy, Risk Management, and Metrics and Targets on the Company's operations and business model by referring to the Task Force on Climate-Related Financial Disclosures (TCFD) framework. Governance Strategy Risk Management ENN Energy has identified nine types of risks: policy and price; compliance; operation; reputation; legal; health, safety and environment (HSE); market; finance; and climate change. Among these, climate-related risks, which might have significant impacts on the Company's business scope, has been integrated into the overall risk management process of ENN Energy. In 2023, ENN Energy identified a total of 40 climate-related risks and opportunities, including 10 physical risks, 14 transition risks, and 16 opportunities. Based on this identification, each risk was deeply considered and scored in terms of likelihood and severity through expert assessment and workshops with ENN Energy. A shortlist of most crucial climate-related risks and opportunities was then developed based on their possibility and materiality to the Company, of which comprising five risks and two opportunities. An in-depth financial quantitative assessment (Value-at-Stake analysis, VaS) was conducted for the shortlisted risks and opportunities. Future Outlook Looking forward to the future, ENN Energy will continuously enhance its capabilities in climate governance, and follow the trend of the times, and seize the huge opportunities arising from the energy transition to provide our customers with clean and low-carbon energy, work with upstream and downstream partners to contribute to achieve China's "dual carbon" goal. ENN Energy will respond to climate-related risks in a highly strategic and forward-looking manner. The Company will actively seek green innovative solutions, continue to implement decarbonisation actions and explore new areas of business growth opportunities, and continuously monitor and manage climate-related risks to prevent the potential financial impact of climate change and the negative impact on business operations promptly. ENN Energy will also seize the market opportunities arising from the low-carbon transition. ENN Energy will shoulder the mission of energy companies in response to the global climate challenge and work together with stakeholders to build a low-carbon, green, and sustainable future for the earth and humanity. |
ENN Energy Net-Zero Roadmap ENN Energy is committed to the mission of "Create a Modern Energy System, Improve the Quality of People's Life, and Become a Respectable, Innovative and Intelligent Enterprise." We have incorporated sustainability concepts in strategy design and daily operation and set an aggressive 2050 net-zero emission target to combat climate change. Our net-zero emission roadmap reaffirms the company's priority of achieving net-zero emission. Without relying on purchased carbon offsets, we are dedicated to reducing and naturalising carbon emissions with this action plan. ▲ ENN Energy's net-zero emission roadmap Decarbonisation Action 2030 As an energy company, it is our responsibility to make an effort to support the low-carbon development of customers, eco-partners, government, and communities when greening our development model. The journey to net-zero is long whereas we are unstoppable. Thus, we decide to progress low-carbon development for the company as well as the society and publish this Decarbonisation Action 2030, which covers Scope I and II emissions of our city gas business, energy generating facilities of the integrated energy business (IEB), and office area. ▲ The panorama of Decarbonisation Action 2030
Decarbonisation Action 2030 — Journey to Net Zero Self-decarbonisation Methane management, low-carbon transportation, energy transformation, efficiency improvement, and green application are the dimensions we considered to drive energy conservation and emission reduction at the operational level.
We set a target of reducing greenhouse gas emission intensity (scope1&2 greenhouse gas emissions/gas sold) by 20% by 2030, comparing to the intensity in 2019.
Fossil fuel combustion and purchased electricity are the main sources of Scope I and II emissions of IEB. We set the target to reduce the carbon emission intensity per unit of energy generated (Scope I and II greenhouse gas emissions/energy sold by energy generating facilities of IEB) by 48% from the energy generating facilities of IEB by 2030, compared to the 2019 baseline.
Building A Low-carbon Society Since carbon peak and carbon neutrality targets have stimulated demands for low-carbon, products and services including low-carbon product portfolios, clean energy solutions, and smart energy management systems have become the tools to serve customers' clean, low-carbon, energy-efficient transformation, and to support the constructions of low-carbon industrial parks, green factories, green buildings, green households, as well as a low-carbon society.
Promoting Practices and Applications of Green Technology Carbon peak and carbon neutrality targets significantly contributed to innovations of carbon energy technologies, which could further facilitate our decarbonisation process and improve our low-carbon serving capabilities. We will closely track new green technologies such as biomass, geothermal, energy storage, hydrogen, and CCUS, adopt these technologies into the energy ecosystem and build up demonstration projects for further promotion. The coming 30 years are critical for China to manage its response to climate changes , aligning with opportunities and challenges brought by the carbon neutrality goal. In the course of achieving the ultimate goal of carbon neutrality, we would like to publish this report to outline ENN Energy's plans for the first 10 years to achieve its carbon ambitions. On our journey to net-zero, we will review the blueprints and adjust our plans every three years following industrial technology development and our decarbonisation status. It is expected that the report will be a reference to our peers and bring value to them, thus promoting low-carbon development across the industry. We are also looking for further cooperation with eco-partners and alliances, providing green energy supply to our customers and improving corporate reputation in terms of low-carbon energy. Biodiversity Conservation ENN Energy is responding to the national biodiversity conservation strategy and adhering to the sustainable development. It has clarified the medium- and long-term decarbonisation action goals, and integrated biodiversity conservation concepts and measures into corporate strategies and daily operations. On May 22, 2022, the 29th International Day for Biodiversity Conservation, ENN Energy released its first Biodiversity Conservation Report , which systematically discloses the Company's practices and achievements in terms of biodiversity conservation. The report disclosed measures taken by the Company for protecting the ecology through five dimensions, land use change, climate change, pollution, overexploitation and species invasion. Green Finance The ENN Energy Holdings Limited ("ENN Energy") has established a Green Finance Framework ("Framework") that sets out how it proposes to use the amount equal to net proceeds to finance or refinance on green projects that in line with the company development strategy, so as to support the company to achieve long-term sustainable development. ENN Energy Green Finance Framework aligns with the 2018 Green Bond Principles ("GBP 2018") of the International Capital Market Association, and the 2020 Green Loan Principles ("GLP 2020") developed by the EMEA Loan Market Association, Asia Pacific Loan Market Association and Loan Syndications & Trading Association. Vigeo Eiris, an independent international provider of ESG research, has provided an independent Second-Party Opinion on ENN Energy's Green Finance Framework, and has expressed a "reasonable assurance" (their highest level of assurance) on the company's commitments and on the contribution of the Framework to sustainability, with the opinion that the Framework is aligned with the four core components of the GBP 2018 & GLP 2020, namely Use of Proceeds, Process for Project Evaluation and Selection, Management of Proceeds and Reporting. Besides, Besides, Hong Kong Quality Assurance Agency (HKQAA) has provided an independent Second-Party Opinion and certified the Framework under the Green Finance Certification Scheme. |