Environmental, Social and Governance Report
Kangda International
Environmental Company
Limited
Kangda International Environmental Company Limited
Content
Environmental, Social and Governance Report
ABOUT THIS REPORT
02
ABOUT THIS REPORT
03
Management's
Statement
05-06
Statement by the Board of Directors
07-12
About Kangda
International
Company Profile
Business Overview
Key Performance
13-22
Sustainable
Development
Corporate Governance
ESG Management
Materiality Assessment
Compliance Management
23-38
Quality for Sustained Progress
Quality Management Intellectual Property Protection
Supply Chain Management Industry Cooperation
39-54
Talent for Win-win Development
Employee Employment
Employee Development
Employee Care
Employee Health
55-70
Environment Protection and Green Operations
Environmental Management
Environmental Goals
Resource Use
Emissions Compliance
Addressing Climate Change
71-76
Social Impact
"Green" Co-construction Philanthropy
77-78
Appendix
Content Index of the Envi- ronmental, Social and Governance Reporting Guide of the Hong Kong Stock Exchange
Overview and Principles
This is the Seventh Environmental, Social and Governance ("ESG") report of Kangda International Environmental Co., Ltd., which is compiled in accordance with the rules in the Appendix 27 of the Guidelines for Environmental, Social and Governance Reporting (the "ESG Reporting Guidelines") of the rules governing the listing of securities (the "Listing Rules") on The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange"), covering the Company's performance and data in the areas of business development, employee caring, environmental protection, and community investment from January 1 to December 31, 2022.
Report Scope
The policies, statements, materials, and data in this report cover the urban water projects, water environment comprehensive management and rural sewage treatment projects that the Company and its subsidiaries have major involvement. Unless otherwise stated, all currencies in this report refer to RMB.
The report follows the principles of "materiality", "quantification", "balance" and "consistency" of the ESG Reporting Guidelines of the Hong Kong Stock Exchange. The content of the report is derived mainly from the assessment and analysis of major topics and the opinions of the stakeholders. Please refer to the chapter "Sustainable Development" for detailed procedures.
Reference
For easier description and better readability, "Kangda International Environmental Company Limit- ed" in this report is also referred to as "Kangda International", "the Company", or "we". "Chongqing Kangda Environmental Protection Industry (Group) Co., Ltd.", a wholly-owned subsidiary of Kangda International, is referred to as Chongqing Kangda in the report.
Confirmation and Approval
The content of this report has been confirmed by the management and directors on April 25, 2023. This report is available in simplified Chinese, traditional Chinese and English. The digital version of the report is available on the website of the Hong Kong Stock Exchange in the category of Kangda International's" Financial Statements/ESG Information" and it can also be obtained from the Compa- ny's website. If you have any questions or comments on this report, please send them to us in the following ways:
Address: No.72, Avenue of Stars, Innovative & High-Tech Park, Northern New Dis- trict, Chongqing,
China Phone: +86-23 6186 7777
Fax: +86-23 6186 7775
Email: kangda@kangdaep.com
Official website: www.kangdaep.com
01
ABOUT THIS REPORT | Management's Statement | Statement by the Board of Directors | About Kangda International | 02 |
Kangda International Environmental Company Limited
Management's Statement
Environmental, Social and Governance Report
Kangda International, with its corporate mission of "Create an Environment with Greener Water, Lusher Mountains and Bluer Skies" in mind, closely follows policy changes, gives full play to its advantages in technology, market integration, and financing, and integrates internal and external resources. The Company also actively explores integrated environmental pollution management by continuously optimizing its technological innovation capability and industrial service chain. These efforts are aimed at contributing to environmental protection in China.
Kangda International is committed to achieving high-level corporate governance and implementing the concept of sustainable development in its overall operations to enhance corporate value and responsibility. We focus on safeguarding stakeholders' interests such as our shareholders, customers, and employees. By always holding ourselves to the highest business ethics, we seek to establish a comprehensive governance structure to maximize internal efficiency and strengthen risk prevention to maintain efficient and stable operations.
Kangda International stays true to the vision of "Creating a First-Class Environmental Protection and Creating a Century Enterprise" by constantly improving its quality management system, and consolidating the foundation of quality management and quality assurance initiatives to ensure high-quality project delivery. We carry out extensive industry exchanges and cooperation, and lead the industry with a business service philosophy of integrity, professionalism, and dedication.
We always follow the value of "putting people first", as we are well aware that the prosperous development of Kangda International cannot be achieved without the dedication and support of each employee. We constantly establish and optimize our talent management mechanisms, create a fair and just employment environment, and a safe and healthy workplace for our employees. To this end, we effectively safeguard their rights and interests, and promptly understand their needs, so that the Company and its employees can pursue common growth in harmony.
Kangda International insists on practicing the corporate vision of "Creating a First-Class Environmental Protection and Creating a Century Enterprise" and takes social responsibility as a crucial part of its corporate development strategy. Based on our business characteristics, we constantly upgrade new environmental protection technologies and methods, integrate environmental protection into aspects such as production, operations, sales, promotion, and daily office affairs,constantly improve energy efficiency, and reduce waste emissions. We aim to ensure that a sound ecological environment can support sustainable devel- opment, and contribute to the Beautiful China initiative.
Kangda International advocates that "As we need to think of the source when drinking water, we should give back to society." We will continue to develop and innovate sustainable public welfare models, organize various public welfare activities, promote environmental education, and create a harmonious and warm social atmosphere. These efforts will demonstrate our commitment to giving back to society.
Going forward, we will further extend the water industry chain, and seize the development opportunities brought by the national "dual carbon" strategy of "peaking carbon emissions by 2030 and achieving carbon neutrality by 2060." We will continue to expand the coverage of high-quality projects, such as reclaimed water and industrial wastewater reuse, and improve project quality. While pursuing our own development, we will continue to promote sustainable social development.
03 | ABOUT THIS REPORT |
Management's Statement | Statement by the Board of Directors | About Kangda International | 04 |
Kangda International Environmental Company Limited | Environmental, Social and Governance Report |
Statement by the Board of Directors |
Responsibility of the Board of Directors
Kangda International has established an ESG governance structure to ensure that its ESG strategy is aligned with its business strategy and that ESG management is integrated into its business operations and decision-making pro- cesses. The Company has developed a three-tier governance structure composed of the Board of Directors, the Audit Committee, and the ESG Working Group as the core. The Board of Directors has primary responsibility for the Company's ESG strategy and performance to drive sustainable development.
The Audit Committee is responsible for suggesting ESG strategies and frameworks, identifying material ESG risks and opportunities, supervising and evaluating the ESG rules, strategies, policies, and objectives, deliberating the annual ESG report, and submitting the report for Board approval.
ESG Work Implementation
The ESG Working Group is in charge of carrying out the ESG concept and strategy, developing ESG objectives and action plans, and reporting to the Audit Committee on a regular basis. In addition, as part of its continued efforts to incorporate ESG requirements into everyday operations and management and improve ESG performance on an ongoing basis, the Company has assigned specialized staff to generate ESG reports.
The Audit Committee met 3 times during the reporting period to examine topics of concern to stakeholders and to summarize ESG work progress. We assessed the material ESG topics in terms of stakeholder expectations and demands, identified opportunities and response measures in climate risk mitigation, and established environmental goals for energy consumption, resource usage, and greenhouse gas (GHG) emissions. The ESG Working Groups would be assigned particular duties after the Board of Directors reviewed the opinions and proposals expressed by attendees at the meetings. The Audit Committee would be in charge of overseeing and examining progress toward the goals as well as the implementation of the ESG responsibilities. More information is laid out in Sections 1.3 Materiality Assessment, 4.2 Environmental Goals, and 4.5 Addressing Climate Change of this report.
ESG Risk Management and Target Monitoring
Kangda International places a high premium on the potential impact and related risks that ESG issues may bring. Based on regulatory requirements, national policies, and ESG-related risks in the industry, Kangda International conducts materiality assessments of ESG issues through approaches such as stakeholder research, and discussions by the Board of Directors and the Audit Committee. The Board of Directors approves and confirms the results of materiality assessments for the year.
05 | ABOUT THIS REPORT | Management's Statement |
Statement by the Board of Directors | About Kangda International | 06 |
Kangda International Environmental Company Limited
About Kangda International
Company Profile
In 2011, Kangda International Environmental Co., Ltd. (HK·06136) was estab- lished. Since then, it has become an industry leader in the field of pollution con- trol. On July 4, 2014, the Company was listed on the main board of the Hong Kong Stock Exchange. The Company participates in pollution control, sewage treatment, and solid waste disposal as a comprehensive urban environmental governance service provider. The Company attracts domestic and overseas capital through stock acquisition, TOT, BOT, PPP, and other models, and provides customers with integrated water project solutions and services.
Kangda International values research and development input and works to improve overall research and development capabilities. The Company has established a technological innovation team composed of renowned experts and scholars at home and abroad, as well as an Expert Committee that is tasked with tackling technological challenges. Moreover, the Company proactively seeks partnerships with famous universities and research institutions such as China Ship Scientific Research Center, Tianjin Municipal Engineering Design and Research Institute to jointly promote the Company's technological innovation.
Kangda International has won numerous honors for its leadership in the indus- try. The Company is one of China's top 50 environmental enterprises and one of the country's first AAA credit rating companies. It is also the Vice-Chairman Organization of the China Environmental Chamber of Commerce and has been the Vice-Chairman Organization of the China Association of Environmental Protection Industry for two consecutive terms. It is also the Vice-Chairman Organization of the China Environmental Chamber of Commerce and the China Association of Environmental Protection Industry. The Company was certified by the ISO 9001 Quality Management System, the ISO 14001 Environmental Management System, and the ISO 45001 Occupational Health and Safety Management System, as well as obtained the CAEPI level-1 industrial wastewater and domestic sewage operation and service ability evaluation certification.
Kangda International is committed to the corporate vision of "Creating a First-Class Environmental Protection and Creating a Century Enterprise" and practices the corporate value of "Sincere Commitment and Repaying the Soci- ety." Kangda International stays true to its corporate mission of "Create an Environment with Greener Water, Lusher Mountains and Bluer Skies." We seize industry development opportunities, improve our management structure, strengthen technological innovation capabilities, and optimize the service industry chain, contributing to environmental protection in China. Going forward, we will further extend the water industry chain, seize the opportunity presented by China's "dual carbon" goals, and continue to expand the coverage of high-quality projects such as reclaimed water and industrial wastewater reuse, to promote our sustainable development continuously.
Nine-Word Principle
Following Rules, Pursuing
Self-discipline and
Fulfilling Duties
Corporate vision
Create a First-Class
Environmental Protection,
Create a Century Enterprise
Environmental, Social and Governance Report
Corporate mission
Create an Environment with Greener Water,Lusher Mountains and Bluer Skies
Corporate core values
Sincere Commitment
and Repaying the Society
07 | ABOUT THIS REPORT | Management's Statement | Statement by the Board of Directors |
About Kangda International | 08 |
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Disclaimer
Kangda International Environmental Co. Ltd. published this content on 26 April 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 April 2023 05:06:02 UTC.