Employee Health and Safety Protection

Employee Health and Safety Protection

Production safety and reduction of industrial accidents are one of themajor concerns of CREC that engages in engineering construction. Weconsider that strictly abiding by the laws and regulations duringproduction and operation is utterly important for the Company'ssustainable development All along, the Company strictly abides by therelevant laws and regulations, such as the Production Safety Law of thePeople's Republic of China (《中华人民共和国安全生产法》) the Law ofthe People's Republic of China on the Prevention and Treatment ofOccupational Diseases(《中华人民共和国职业病防治法》, the FireControl Law ofthe People's Republic of China(《中华人民共和国消防法》)and the Regulation on Work-Related Injury Insurances(《工伤保险条例》)as well as other laws and regulations that have a material effect onemployees' health and safety in the regions and countries where theCompany carries out operations, and formulates related systems, such asthe Occupational Safety and Health Supervision and ManagementRegulations, Guiding Opinions on Employee Life Security Works tocontinue to intensify management in this area, striving to provideemployees with a healthy and safe working environment, reduce workrelated accidents and protect the legitimate rights and interests of theworkers.

In 2022, CREC adhered to the policy of supremacy of life and safety first.Bearing in mind the safe development philosophy, the Companystrengthened red line awareness and bottom-line thinking. Giving toppriority to the life safety and physical health of employees, the Companycontinued to promote the fulfillment of "management" and "supervision'responsibilities. At the same time, the Company continued to strengthenmanagement and control of safe production, comprehensivelystrengthened and standardized safe production education and training.put in place the mechanism of safe production reporting, and promotedthe effective operation of the automatic control system.

Safe production

CREC always regards “to maintain the stable condition of safe production,to provide the society with safe and good-quality architectural products, toprovide the public with a pleasant environment, and to create safe andhealth working conditions for the staff" as an important aspect of its socialresponsibility. We strengthen safe production and ensure the safety ofemployees in the following five aspects: implementing safety responsibility.improving safety management system, strengthening safety constructionmanagement, strengthening safety equipment protection and carrying outsafety education and training.

The Company has set the long-term goals of"zero accident and zero injuryfor projects and essential safety for itself, and has conscientiouslyimplemented the "14th Five-Year Plan" for Management of Safe Production(《安全生产管理“十四五”规划》),and formulated the Safe ProductionEnqineering Quality, Environmental Protection and Occupational HealthSupervision Management Essentials in 2022(《2022年安全生产、工程质量、环境保护和职业健康监督管理工作要点》.The Company definedand conscientiously implemented the work ideas and objectives for thewhole year. The Company's safe production management is linked to theremuneration of senior management, which is an important part of theSASAC's appraisal of the Company's annual performance as well as theevaluation of term of office of the Company's major responsible persons. Interms of contractor safety management, the Company implementednegative list management for labor (professional) contractors. In bidevaluation, the Company evaluated the capabilities of bidders of managingsafe production.

lmplementing safety responsibility

The Company has a safe production (quality) committee, which isresponsible for all aspects of the Company's safe production. Thecommittee has 2 directors who are the Company's Party Secretary andchairman, and the president; 1 deputy director who is the vice president incharge of safety and quality: several members who are the members of theCompany's leadership team and senior management, safe productiondirectors (senior executives), senior experts, and head of relevantdepartments at headquarters. From the Company's headquarters to theproject department, organizations at all levels have safety productiondirectors and production safety supervision departments.

In order to continue to strengthen the fulfillment of main responsibilitiesperfect the management system, and consolidate the managementfoundation, the Company implemented the requirements of the Circular onFurther lmplementing the Responsibility of Management and Supervisionof Production Safety and Building a Long-term Mechanism of DoublePrevention of Risks and Hidden Dangers(《进一步落实安全生产“管”“监”责任暨构建风险和隐患双重预防长效机制的通知》),and studied andreleased the Circular on the Action of the Year of Production Safetylmprovement(《关于开展安全生产提升年行动的通知》)and the ChinaCentral Railway Plan for lmproving the Safety and Quality ManagementSystem of CREC(《中国中铁安全质量管理系统提升实施方案》).TheCompany put into place 15 important measures of the Work SafetyCommittee of the State Council, and revised and issued the Ten Measuresfor Public Security by a Strong Hand of CREC《中国中铁铁腕治安硬十条》). The Company kept strengthening the construction of safetyproduction system, stepped up the investment and control of safetyproduction, and built a systematic, three-dimensional, and normalized precontrol mechanism that integrated inspection, assistance, and guidance. Inaddition, the Company set up a safety, quality and environmental protectioninspection team, a comprehensive inspection department and 3 stationedinspection teams, and the units set up 123 control inspection teams and290 control teams, thus achieving significant decline of deaths per tenbillion turnover while ensuring substantial increase in operating income.

In 2022, the Company strictly enforced the requirement of the Notice onEstablishing a Mechanism of Safe Production Reporting(《关于建立安全生产述职机制的通知》,improved the Company's safe productionassessment and evaluation system, and urged the persons chiefly in chargeof safe production and other persons in charge of safe production to fulfilltheir duties with due diligence. The Company further promoted thefulfillment of“management" and “supervision" responsibilities of safeproduction and continuously improved the intrinsic safety guaranteecapabilities for itself and projects by carrying out five theme activities.These theme activities included the major publicity and training of the"management" and “supervision" responsibilities of safe production, thespecial inspection of the fulfillment of “management" and “supervision'responsibilities of safe production, special action to strengthen thefoundation of safe production management, special action to prevent andcontrol inertial production safety accidents, and action to enhance intrinsicsafety guarantee capabilities.

In 2022, the Company furthered the special safety inspection on“resumption of work and production" investigation and rectification ofsafety hazards, special safety rectification on self-built houses, specialinspection on fire and disaster prevention, etc. The Company investigatedand inspected secondary companies 61 times, tertiary companies 57 times,and inspected 310 projects in time to identify problems and eliminatehidden dangers, as part of its responsibility fulfillment.

In 2020 and 2022, the Company has no major production safety liabilityaccidents resulting in death and loss of working days for work-relatedinjuries. In 2021, one major production safety liability accident occurred inthe Company, resulting in 14 deaths and 169 working days lost for work-related injuries in the year, the number of deaths from major productionliability safety accidents per RMB10 billion of operating revenue was 0.18.

lmproving safety management system

in order to improve the capability of ensuring safe production, theCompany put forward"2468" management key points for implementing itsmain responsibilities in the new era, namely fulfilling the “tworesponsibilities, advancing the "four modernizations” improving the “sixmajor" systems, and strengthening the “eight" implementations. Themanagement key points scientifically elaborate the multi-level, multi-fieldand total-factor management content, requirements and functions ofsafety management of construction enterprises

The Company thoroughly implements the Opinions of the CPC CentraCommittee and the State Council on Advancing the Reform and Developmentof the Work Safety Field 《 中共中央国务院关于推进安全生产领域改革发展的意见》), and earnestly implements the GB/T28001 standard. By takinothe normal control of the production factor system (organizational commandtechnical support, and resource allocation) as the basis for safe production,the Company adopts effective measures to strengthen the safe production atthe source. At the same time, the Company rectifies production safety byadopting top-level design, system establishment, supervision and inspectionand other measures, establishes a multi-level protection system of prevention.rectification and supplementation, and truly forms a long-term mechanismfor safe production, to enhance intrinsic safety quarantee capabilities for itselfand projects.

In 2022, the Company comprehensively built a system of"general system +special system + rigid standard". The Company formulated and issued theAdministrative Measures for Safety, Quality and Environmental ProtectionofCREC(《中国中铁安全质量环保管理办法》),a programmatic documentabout safety and quality, sorted out and improved the existingmanagement system to form 9 special management systems; issued theRigid Standard for Safety, Quality and Environmental Protection (《 安全质量环保刚性标准》)and comprehensively built a safety, quality andenvironmental protection management system. Each constructionmember enterprise of the Company has set up general inspection teamand a regional inspection team, and established a regular supervisionreport system to eliminate all hidden dangers concerning safety, qualityand environmental protection in time.

In 2022, the Company reshaped the management mechanism at each levelaccording to the time dimension and the whole life cycle dimension ofprojects. The Company continued to strengthen the tiered control of safeproduction risks in an all-round way. Based on the list of identification andevaluation of safety risks, the Company identified the control level, scope,priorities and persons in charge of safety risks at each layer, andimplemented safety management and supervision responsibilities forevery major safety risk and major hazard source. The Company strictlyimplemented risk control plans and measures, and strengthened the rigidimplementation of risk control technologies and systems.

At important time nodes, the Company adopts LEC, expert investigationmethod, right and wrong judgment method, safety check list analysis andother methods to carry out omni-directional and full-process riskidentification and evaluation, and to inform employees of risk sources andcontrol measures by means of safety education and training, technicaldisclosure, update and publicity,etc. The Company regards riskidentification, evaluation, ranking, and control as an important part ofproject safety planning.

In terms of emergency management, the Company formulates theEmergency Plan for Safety, Quality, Ecological Environment and DisasterAccidents(Events)(《 安全质量、生态环境及灾害事故(事件)应急预案》) and carries out three kinds of emergency drills, namely desktop drills,functional drills, and comprehensive drills. During the “Safe ProductionMonth" in June 2022, the Company extensively organized emergency drills.

Strengthening safe construction management

The Company strengthens the construction technology managemententers into the Safety and Quality Responsibility Letter with theconstruction enterprise, promotes scientific construction, continuouslyoptimizes planning, rationally arranges resource allocation, and resolutelyavoids blindly meeting tight deadlines, to see that no construction iscarried out without complete formalities, clear geological conditions, safetymeasures, well-trained personnel, and the elimination of hidden dangersDuring the course of the project, the Company is ready to review theconstruction drawings and the exploration design at any time. ln the eventof discrepancies between the actual geology and the design drawings, theCompany shall promptly feed back to the designer and the owner andimplement the change plan in time, to eliminate major safety and qualityrisks.

Strengthening security equipment protection

The Company further strengthens the research and development andpromotion of key technologies and equipment for safe productionpromotes the application of informatization, mechanization, intelligenttechnology and equipment in dangerous processes and key aspects, andstrengthens the further integration and promotion of modern informationtechnology and safety production.

Carrying out safety education and training

The Company continuously improves the education and training system forproject safety, continuously promotes the application of safety educationtraining micro-classes, prepares and supplements the courseware on theprevention of common quality problems, and uses multimedia safety trainingtoolbox to train field operators to realize the fun, informatization,systematization and standardization as well as diversification andspecialization of training. In 2022, the Company conducted examinations forall employees to understand the Production Safety Law (《 安全生产法》)andthe production safety management policy, and sent employees to supervisethe examinations on site in the affiliated enterprises. The Company organizedcontinuing education for registered safety engineers and "three types ofoersonnel" and trained more than 3,300 full-time personnel. Using online andoffline methods, the Company trained a total of 342,000 times for enterpriseeaders, project managers, safety and quality personnel and operators at allevels, further improving the quality of the full-time team and employees.

Occupational health

The Company strictly abides by laws and regulations such as the ProductionSafety Law of the People's Republic of China(《中华人民共和国安全生产去》) and the Law of the People's Republic of China on the Prevention andTreatment of Occupational Diseases (《中华人民共和国职业病防治法》.The Company improves labor safety and health conditions, and implementslabor protection as well as special protection for employees engaging inspecial types of work and female employees. The Company continues to dowell in occupational health and environmental protection; researchesintroduces,and uses green and low-carbon recycling productiontechnologies and processes; implements dust and poison control in theworkplace according to national labor and health standards, particularlystrengthening the prevention and control of dust hazards in tunnelsunderground projects, and industrial manufacturing sites; resolutely puts anend to pneumoconiosis among front-line workers; and pushes forward greerdevelopment. In 2022, the Company conscientiously carried out the preassessment of occupational disease hazards for all construction projectsoccupational health education and training for all employees, notification ofoccupational hazard factors, improvement of health examination filesprovision of qualified labor protection supplies and strengthening of processsupervision and inspection. The Company conducted occupational healthcheckups for all managers and operators, and checked 28,235 workplaces foroccupational disease hazards. Incorporating occupational health traininginto its "cloud platform" the Company conducted occupational healthtraining 39,566 times, with over 1.5 million participants

The Company strengthens the declaration, monitoring, notification andwarning of occupational disease hazards, identifies them according to theCataloque of Categorized Occupational Disease Hazard Factors (2015)promptly and truthfully reports to the competent public health authority atthe location of projects or the Company's registration and accepts thesupervision. The Company insists on the detection of occupational diseasehazards every year and the evaluation of occupational hazards every threeyears. In 2022, there were no occupational disease incidents in the Company.

Labor management of contractors

The Company regards the labor management of contractors as an entrycondition and includes it as an evaluation element in the daily evaluationand annual evaluation of contractors. The contract entered into between theCompany and contractors clarify the labor safety and labor rights and otherprovisions, requiring the labor contractors to implement measures of safetyproduction and occupational health protection as required by the Companyto provide laborers with a safe employment environment and productionconditions The Company provides workers with work injury insurance andaccident insurance, and regularly conducts safety and health education forworkers to minimize safety accidents and occupational hazards.

The Company issued the Notice on Strengthening Management of OverseasSafety Production(《加强境外安全生产管理工作的通知》,which requiresthat the safety of all overseas employees, including contractor employees, begiven the highest priority, and that overseas enterprises be integrated into theenterprise's safe production management system , a production safety speciainstitution be set up, and personnel in charge of safe production supervisionbe assigned according to the relevant regulations of the countries whereprojects are located. The Company has put forward 9 measures to strengthenoverseas safe production, such as formulating overseas production safetydevelopment plans, strengthening production safety management andcontrol of overseas projects, strengthening production safety standardizationmanagement, applying safety information technology, ensuring safetyoperation, strengthening safety training, carrying out risk control and hiddendanger investigation, improving emergency handling capacity, and dealingwith safetv accidents in accordance with requlations.