Use and Protection of Natural Resources

Use and Protection of Natural Resources

Lucid waters and lush mountains are invaluable assets, The Companyattaches equal importance to resource conservation and environmentprotection, striving to build“resource-conserving and environment-friendlyprojects. The Company has formulated a series of rules and requlations, suchas the Administrative Measures for Supervision and Management on EnergyConservation and Emission Reduction(《节能减排监督管理办法》andAdministrative Measures for Environmental Protection(《 环境保护管理办去》), to carry out energy conservation, emission reduction and ecologicaenvironmental protection. The Company advocates the concept of greenoffice and optimizes the efficiency of resource use.

Energy management

The main energy consumed by the Company is electricity, gasoline, dieselfuel and natural gas in the construction and office process

In 2022, the Company set a goal of reducing the comprehensive energyconsumption per RMB ten-thousand of operating income by 3.2% on thebasis of 2021.During the period, the Company strengthens theimplementation of the responsibility system for energy conservation andemission reduction, and makes solid progress in energy conservation andefficiency improvement. According to the latest requirements of the SASACon energy conservation and ecological environmental protection of centraenterprises, the Company promotes relevant work by adjusting themanagement organizational structure, upgrading the monitoring systemissuing evaluation, reward and punishment indicators, and conductingtechnology research and development.Meanwhile, the Companyformulates and implements the Supervision and Management Regulationson Ecoloqical Environmental Protection and Energy Conservation.

In 2022, the comprehensive energy consumption (comparable price) pelRMB ten-thousand operating income was 0.0429 tons of standard coal)RMB ten-thousand, down 3.16% from the same period of last year; the CO.emission was 0.1502 tons/RMB ten-thousand, down 3.8% from the sameperiod of last year, accomplishing the annual target of energy conservationand environmental protection.

Consolidating the system for the management of energyconservation and environmental protection and enhancing itscapability in this respect: in accordance with the requirements of theSASAC and the industry management norm, the Company optimizesmanagement resource allocation, and integrates and hands over thebusiness of ecological environmental protection, energy conservationand emission reduction to the Safety, Quality and EnvironmentalProtection Supervision Department; dynamically revises and improvesmeasures for the management of energy conservation andenvironmental protection for the work to be conducted on all fronts.

Constantly upgrading the statistical monitoring system: accordingto the latest requirements of energy conservation and ecologicalenvironmental protection of central enterprises, the Companyaunches and upgrades the new statistical system of energyconservation and ecological environmental protection, to realize thereqular online filling of energy conservation and environmentalprotection data.

Strictly implementing the evaluation, reward and punishmentmechanism for energy conservation and emission reduction: theCompany issued the indicators of energy conservation and emissionreduction in early 2022, requiring all second-tier units to decomposethe indicators and release them to their third-tier companies andproject departments to promote management through evaluation.The Company also adopted reward and punishment measures topromote energy conservation and emission reduction

Strengthening the evaluation, reward and punishment of theenergy conservation and environmental protection managementtargets: the Company implements strict performance evaluation otthe affiliated companies based on the quantitative assessment indexissued at the beginning of 2022, and completed the annual energysaving assessment targets

Emphasis on the process supervision over ecological environmentalprotection: the Company makes a regular statistical analysis of thepenalties imposed on the affiliated companies by the local governmentand the competent authority of industry for ecological environmentaprotection problems, and notifies them on the quarterly videoconference on safety and environmental protection and holds themaccountable.

Water management

According to the Statistical Statement on Energy Conservation andEcological Environment Protection of Central Enterprises(《 中央企业能源节约与生态环境保护统计报表》issued by the SASACofthe State Council,the Company has improved its statistical monitoring system, standardizedthe statistical calculation of water consumption, and strengthened therecycling of water resources. In 2022, the Company set a target to reducethe amount of new water used per unit by 10% on the basis of 2021, andactually used 461.06 million tons of new water, up 0.02% from the sameperiod of last year, and 4.083 tons of new water per unit per RMB tenthousand,down 10% from the same period oflast year.

The Company does not have any problems in obtaining suitable watersources, and the water supply is mainly provided by the water supplycompany in the area where the project is located.

To meet the annual target for reduction of new water consumption perunit, the Company stresses measures to use construction water, As a part ofwater conservation and management, the Company collects and usesnatural precipitation or wastewater treated by recycling. Automatic watersaving sprinkler systems and sedimentation ponds are promoted and usedcommonly for concrete maintenance, vehicle washing and dustsuppression. They have strengthened the recycling of water resources andimproved the recycling rate of wastewater, thereby effectively saving waterresources.

Green office

In 2022, the Company continued to carry out the application and promotionof the paperless conference system at the headquarters. The paperlesssystem at the headquarters supports the parallel access of hardware devicessuch as computer terminals, mobile phones, and tablets. lt supports theholding of paperless meetings with technical methods such as display onthe same screen, handwritten signing and approval, and data distributionand sharing. With the paper system, the Company achieves the goal of full.process digitization that enables preparation before meetings, controlduring meetings, and filing and statistical analysis after meetings. In 2022the Company's headquarters held a total of 147 paperless meetings, with atotal of 4,028 attendees, and kept 2,682 meeting documents on file, whichsaving 997,315 paper in total, equaling to 1662 trees.

Ecological protection

As a construction enterprise, the Company's operations will not have asiqnificant impact on the environment and natural resources. The Companyattaches great importance to the protection of the environment and naturaresources, and has formulated and conscientiously implemented the Measuresfor Supervision and Management of Energy Conservation and EmissiorReduction, the Environmental Protection Management Measures and othersystems. In the early stage of construction, the Company organizesprofessional organizations to carry out environmental impact evaluation, anobased on the evaluation results, to formulate feasible and effective protectionprograms, implement measures relating to soil and water conservation,biodiversity protection and vegetation protection, so as to achievesimultaneous planning and implementation of ecological environmentaprotection and engineering. During the construction, the Companycontinuously invests in ecological protection by using environmentaprotection equipment, improving the construction process and optimizing theconstruction plan, so as to reduce the impact on water, atmosphere, vegetationand organisms. The Company's information system for energy conservationand ecological protection reqularly collects ecoloqical monitoring data toimprove the intuitiveness and authenticity of ecological protectioninformation. In 2022, the rate of the Company's completed projects that passedthe environmental impact evaluation was 100%.

In terms of land use, the Company seriously implements the Law on thePrevention and Control of Soil Pollution (《 土污染防治法》.It incorporatesecological restoration into project management in the early stages ofconstruction, by upholding the principles of scientific site selection.standardized abandonment, prior protection, and active consumption. Weensure that, after the construction at each construction site is completedthe earth's surface is covered with suitable soil, construction waste on bothsides of the road is removed, and the ground is restored to its natural state.For the temporary land involved in the construction, the Company strictlyprepares and implements land use and reclamation plans for protectingenvironmentally sensitive areas such as densely populated areas andnature reserves, and restores the land according to relevant regulationsafter project completion to maximize the protection of ecologicaenvironment.