China Shenhua Energy : 2021 Environmental, Social and Governance Report

Contents

02 04 06 07

10

About the Report

Chairman's Statement

ESG Governance Statement from the BoardAbout China Shenhua

Feature: Science and Technology Lead the Future, Expedite Intelligent Development

16 Corporate Governance

• 18 Governance System

• 21 Integrity and Compliance

• 26 Party Building

• 27 Supply Chain Management

28 ESG Governance

• 30 ESG Governance Structure

• 30 ESG Governance Mechanism

• 32 Communication with Stakeholders

• 33 Response to ESG Reporting Principles

• 34 ESG Goals Management

• 35 Response to United Nations 2030 Sustainable Development Goals (SDGs)

36 Response to Climate Change

• 38 Governance

• 39 Strategy

• 40 Risk Management

• 41 Indicators and Targets

42

Our Actions in 2021

46 Environmental Protection

82

Employee Care

• 48 Environmental Management System

• 49 Environmental Risk Control

• 51 Pollution Prevention and Control

• 56 Water Resources Protection

  62 Product Responsibilities

• 59 Ecological Restoration and Biodiversity

84	Protection of Rights and
Interests of Employees
88	Assistance to Employees'
Development
91	Employee Care
92
Community Charity

64	Quality Management	94 Community Care
66	Scientific Innovation	98 Common Prosperity
68	Intellectual Property Protection
69	Protect Customers' Rights and Interests

70 Safety and Health

100
Future Outlook
72	Safety Management System	101	AppendixⅠ : Table of Key Performance
74	Safe Production	105	AppendixⅡ: ESG Indicator Index
78	Occupational Health	107	Appendix Ⅲ: Independent Assurance Report
80	Supply Chain Security	109	Appendix Ⅳ: MSCI-ESG Self-evaluation Table
112	AppendixⅤ: Definitions
114	Feedback

2

About the Report

The report mainly introduced the concepts and policies of China Shenhua Energy Company Limited (hereinafter referred to as "China Shenhua" or the "Company") in aspects of environmental protection, social responsibility and corporate governance, as well as the efforts made in 2021. It aims at enhancing communication and liaison with all stakeholders in response to concerns and hopes. We have taken into consideration the reading interests and requirements of different stakeholders to the extent possible during the compilation of this report to make it as plain, clear and easy to read as possible. The compilation of this report may not be entirely satisfactory due to various objective constraints. You are welcomed to put forward your opinions and suggestions by completing the Feedback Sheet attached to this report. The Company will improve and enhance the report on a best effort basis in the future.

REPORTING PERIOD

The report is an annual report. The reporting period is from 1 January 2021 to 31 December 2021 while certain contents exceed this period.

MAIN SCOPE OF THE REPORT

Unless otherwise specified, the relevant information of the report covers China Shenhua and its subsidiaries.

PRINCIPLES OF DATA PROCESSING

The information and data contained in this report were mainly sourced from official documents, statistical and financial reports of the Company, as well as the environmental, social, and governance (hereinafter referred to as the "ESG") information collected from the Company's statistics and audits. This report is available in Chinese and English. In case of any confusion or inconsistency, the Chinese version shall prevail. Unless otherwise stated, the currency used is the Renminbi. The major indicators on safety and environmental protection of the Company are calculated in accordance with China's regulations or industry standards, including General Principles for Calculation of the Comprehensive Energy Consumption (GB/T2589-2020), the General Principles of Water Statistics in Enterprises (GB/ T 26719-2011), Calculation Method for Pollution Discharge Volume at the Discharge Outlet of State Controlled Pollution Sources (H.B. [2011] No.8), Energy Statistical Reporting System (2019) (National Bureau of Statistics), etc.