Shanghai Dazhong Public Utilities : Environmental, Social and Governance (ESG) Report

上海大眾公用事業（集團）股份有限公司

Shanghai Dazhong Public Utilities (Group) Co., Ltd. *

(A Joint-stock Company with Limited Liability Incorporated in the PRC)

(Stock Code: 1635)

Environmental, Social and

Governance (ESG) Report

March 30, 2021

• For identification purpose only

1

Notes on the compilation of the report

This report is the Environmental, Social and Governance (ESG) Report of 2020 issued by Shanghai Dazhong Public Utilities (Group) Co., Ltd. (hereinafter referred to as "the Company" or "Dazhong Public Utilities"), which describes the philosophy, practice and progress of ESG of Dazhong Public Utilities. This report is issued after being deliberated and approved by the Board of Directors of the Company. The Board and all Directors guarantee that the report does not contain any false records, misleading statements or major omissions, and shall bear individual and joint liabilities for the truthfulness, accuracy and completeness of its contents.

• Scope of report

Range:	this report is based in Shanghai Dazhong Public Utilities (Group) Co., Ltd., and covers
	the headquarters of the Company as well as some major subsidiaries and branches etc.
Term:	from January 1, 2020 to December 31, 2020, and some internal policies and
	management measures may exceed this term.
Period:	annual report.

• Basis of report
  This report is compiled in accordance with the ESG Guide published by the Stock Exchange of Hong Kong Ltd.
• Notes on data
  All data comes from the official documents and statistics reports of Shanghai Dazhong Public Utilities (Group) Co., Ltd. The currency in this report is denominated in RMB, except as otherwise stated.
• Form of report
  This report is published in PDF. You may obtain the electronic version of this report on the official websites of Shanghai Dazhong Public Utilities (Group) Co., Ltd. and the Stock Exchange of Hong Kong Ltd.
• Contact details

Contact department:	the office of secretary to Board of Directors
Contact No.:	8621-64280679
Contact Email:	[e-mail]

2

• Company summary

	Company name	上海大眾公用事業（集團）股份有限公司
	English name	SHANGHAI DAZHONG PUBLIC UTILITIES (GROUP) CO., LTD.
	HQ location	Shanghai, China
	Establishment date	December 24, 1991
	Chairman	Yang Guoping
	Listed on	Shanghai Stock Exchange/Hong Kong Stock Exchange
	Stock code	SH.600635/HK.1635
	Stock abbreviation	DZUG
•	Key performance results
	Economic results:
				2020	2019
	Total assets (RMB100 million)	232.63	225.65
	Operating revenue (RMB100 million)	49.53	54.60
	Net profit attributable to listed company's shareholders
	(RMB100 million)			5.15	5.26
	Basic EPS (RMB yuan)			0.17	0.18
	Environmental results:
				2020	2019
	Energy consumption (tons)			748,292.21	3,990,000
	CO2 emission (tons)			2,144,966.06	6,135,843.81
	Water usage (tons)			6,945,500	7,283,655.79
	Waste gas volume (tons)			1,520.79	899.37
	Waste material volume (tons)			56,207.42	61,778.93
	Social results:
				2020	2019
	No. of employees			2,962	3,055
	Employee training (person-time)	3,234	/
	Man-woman proportion of employees	79.3%	81.64%
	Education background proportion of employees	20.7%	18.36%

3

CONTENTS

1	Corporate Profile	5
	1.1	About Us		5
	1.2	Organisational Structure	6
	1.3	Major Honours	6
	1.4	Responsibility Management	7
2	Corporate Governance	11
	2.1	ESG Management	11
	2.2	Standardised Management	12
	2.3	Information Disclosure	12
	2.4	Investor Relations	13
	2.5	Customer Relations Management	13
3	Environmental Performance	14
	3.1	Overview of Relevant Environmental Policies in Key Business Areas	14
	3.2	Emissions		16
		3.2.1	Emissions-related Indicators	16
	3.3	Resources Usage	18
		3.3.1	Resources Consumption	18
	3.4	Environment and Natural Resources	18
	3.5	Environmental Indicators	19
4	Social Responsibilities	20
	4.1	Employment and Labour	20
		4.1.1	Employment and Labour Standards	20
		4.1.2	Employees' Health and Safety Assurance	21
		4.1.3	Employees' Development and Training	22
		4.1.4	Legal Employment and Treatment	22
	4.2	Operation Management	23
		4.2.1	Supply Chain Management	23
		4.2.2	Anti-corruption Measures	23
		4.2.3	Product Liabilities	24
	4.3	Community Investment	24
	4.4	Community Indicators	25
5	Future Planning		27
	5.1	Risks and Opportunities of ESG	27
	5.2	Strategic and Organisational Framework	28
		5.2.1	Spurring Sustainable Development Methods	28
		5.2.2	Development Strategy and Operation Plan	29
6	Appendix		31
	6.1	Terms and Abbreviations	31
	6.2	Index		32
	6.3	Awards Winning	36
	6.4	Opinion Feedback	37

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1 Corporate Profile

1.1 About Us

Shanghai Dazhong Public Utilities (Group) Co., Ltd. was established on December 24, 1991, formerly known as Shanghai Pudong Dazhong Taxi Co., Ltd. (上海浦東大眾出租汽車股份有 限公司), the first joint stock company in the taxi industry of China. The Company's shares were listed on the Shanghai Stock Exchange on March 4, 1993 (stock short name: 大眾公用; stock code: 600635.SH) and the Main Board of the Hong Kong Stock Exchange on December 5, 2016 (stock short name: DZUG; stock code: 1635.HK). As of December 31, 2020, the outstanding shares of the Company amounted to 2,952,434,675 shares, among which there were 2,418,791,675 A shares, accounting for 81.93% and 533,643,000 H shares, accounting for 18.07%. As of December 31, 2020, the total assets of the Company amounted to RMB23.622 billion and net assets amounted to RMB8.643 billion.

Over the past 20-plus years, after continuous "innovation-driven transformation and development", the Company has transitioned from "Pudong Dazhong" to "Dazhong Scientific and Innovation", and then to "Dazhong Public Utilities". The Company adheres to steady operation and development, realising leap-forward development time after time, and has developed into an investment holding enterprise with simultaneous development of public utilities and financial investment, including city gas, sewage treatment management, urban transportation, infrastructure investment and operation, logistics and transport, and financial investment which includes financial services and venture capital business.

5

1.2 Organisational Structure

Shareholders'

Meeting

Board of

Board of

Directors

Supervisors

GM's Ofce

Human

Investment &

Board

Admin

IT

Finance

Legal

Audit

Secretary

Resources

Development

Ofce

Urban

City gas

Environment &

Financial

transportation

municipal

investment

1.3 Major Honours

Since the listing of the Company, with a good corporate image, in-depth practice of social responsibility, comprehensive corporate governance structure and sound information disclosure mechanism and internal management system, the Company has been selected as the constituents of the following indexes: Dow Jones China Index, "Shanghai and Shenzhen 300 Index" of Shanghai Stock Exchange, SSE 180 Index, SSE 180 Relative Growth Index, SSE 180 Relative Value Index, SSE Corporate Governance Index etc. Moreover, the Company has also been elected as the executive director of the second board of directors of the China Association of Listed Companies (中國上 市公司協會第二屆理事會常務理事單位); the vice president of the second session of the Council of Shanghai Listed Company Association (上海上市公司協會第二屆理事會副會長單位); the vice chairman of the sixth session of the Council of Shanghai Association of Stock System Enterprises (上

海市股份公司聯合會第六屆理事會副理事長單位).

6

1.4 Responsibility Management

The steady growth of the Company's operating performance has a positive impact on the Company's reputation, the society and environment, which has been widely recognised by the society, and has laid a solid foundation for the Company's diversified operation and rapid development. The Company sticks to disclosing the environmental, economic and social indicators of its operation and management to all stakeholders. Focusing on the core values of "dedication and responsibility, cooperation and innovation", the Company has made continuous efforts in economic development and building green projects and building harmonious communities, achieving positive results. The Company pays close attention to the communication with all stakeholders, and adopts various methods to actively respond to the appeals of all stakeholders on ESG.

Corporate philosophy

Strategic thinking

Management

philosophy

Core values

Ultimate goal of corporate social responsibility

• People-orientedand teamwork
• Solid main business and core abilities
• Strict management with practical manners
• Creating value for shareholders and providing services to customers
• Creating value for the shareholders, the staff, the public and the society

7

• Management of stakeholders

Stakeholder	Needs and expectations	Communication and response
Government	•	Law-abiding and compliant	•	Maintaining compliance
	•	Job-creating,tax-paying		management, improving
	•	Supporting national strategic		external information
		development		disclosure
	•	Supporting SMEs	•	Paying taxes in full and in
		development		time, creating jobs
	•	Promoting industry	•	Providing services to SMEs
		development	•	Answering to major national
				policies
Shareholders	•	Corporate governance and	•	Optimising corporate
and investors		operation strategies		governance, establishing
	•	Information disclosure and		communication mechanism
		risk control		with shareholders and
	•	Stable profitability and		investors
		investment returns	•	Disclosing financial and
				performance reports in time
Customers	•	Service value or quality	•	Customer research and study
	•	Customer interest protection	•	Ensuring product or service
				quality
			•	Improving customer service
				procedures
			•	Improving customer
				complaint handling
				mechanism
			•	Improving customer
				communication mechanism
Employees	•	Basic interest protection	•	Complying to employment-
	•	Reasonable salaries and		related laws, improving
		benefits		employment rules
	•	Training and promotion	•	Formulating competitive
		channels		remuneration system
	•	Sound working environment	•	Spurring transparent
	• Physical and mental health		promotion channels
		and protection	•	Organising professionalism
	•	Family care		training
			• Organising employee-care
				activities

8

Stakeholder	Needs and expectations	Communication and response
Industry organisations/	•	Commercial ethics and	•	Pushing forward the win-win
partners		credit		with industry partners
	•	Maintaining sound industry	•	Conducting strategic
		development		cooperation negotiations and
	•	Win-win for partners		cross-interviews
			•	Maintaining good interaction
				and mutual trust with major
				suppliers
Media	•	Good interaction with media	•	Improving media
	•	Information disclosure		communication channels
			•	Information disclosure via
				multi-channels
Communities	•	Targeted poverty relief	•	Supporting poverty relief via
	•	Supporting community		various manners
		development	•	Conducting public welfare,
	•	Spending on community-		voluntary service activities
		based public welfare	•	Good interaction with non-
				governmental organisations
Environment	•	Green development	•	Green working
	•	Environment protection and	•	Priority in environmental &
		energy saving		energy-saving equipment
			•	Developing green
				environmental-related
				businesses

• Analysis of significant topics
  The Company attaches great importance to communication with internal and external stakeholders, constantly expands communication channels, improves communication frequency and efficiency, enriches communication contents, and enables stakeholders to timely and comprehensively understand the practice and performance of the Company's social responsibilities. According to the business development strategy, industry characteristics and other factors, the Company systematically and comprehensively evaluates the sustainable development elements of the Company, and actively carries out communication with stakeholders. By means of external consultation and industry research, this report systematically sorts and analyses the important issues for the Company and stakeholders, and eventually determines the importance matrix of 20 relevant topics, and clarifies the key contents of ESG report disclosure.

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Degree	No.	Significant topics	Scope
	1	Compliance management	Governance
	2	Risk management	Governance
	3	Public welfare activities	Society
Highly-important	4	Resource saving	Environment
	5	Product services	Governance
	6	Anti-corruption	Governance
	7	Pollutant emission	Environment
	8	Employee training & education	Society
	9	Employee development and benefit	Society
	10	Green working	Environment
	11	Corporate culture development	Society
	12	Employment environment improvement	Society
Medium-important	13	Energy saving	Environment
	14	Consumer privacy protection	Society
	15	Green finance development	Environment
	16	Energy-saving measures	Environment
	17	Greenhouse gas emission	Environment
	18	Child & forced labour prevention	Society
Low-important	19	Supply chain management	Society
20	Greenhouse gas emission	Environment

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2 Corporate Governance

2.1 ESG Management

The Company implements the ESG philosophy from all organisational levels, integrates social responsibilities into all aspects of daily operation, establishes organisational structure and management system of social responsibility management, continuously promotes the close integration of social responsibility philosophy and business development, and implements social responsibility work.

The Company attaches great importance to the ESG work, the Board of Directors participates in the whole process of ESG management, establishes the framework and contents of ESG work, authorises the management to organise and carry out ESG-related work and role positioning, supervises the implementation of ESG work, and regularly reviews the implementation of ESG work.

Board	The Board of Directors of the Company is the decision-making
	institution for ESG management, responsible for the overall
	policy & rules formulation and significant event decision-
	making.
Management	The management of the Company is responsible for
	coordinating the implementation of the Board's major
	instructions on ESG corporate governance, implementing all
	policies and rules, and managing the implementation of ESG
	work by relevant departments and subsidiaries.
Office of secretary to Board	Responsible for the formulation of the Company's annual ESG
	report and daily management.
Execution institutions	The Company's departments, subsidiaries and branches are the
	specific execution institutions of ESG work, in cooperation with
	the tasks assigned by the Board and management.

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1. Standardised Governance
   The Company strictly follows the Company Law, the Securities Law, the Codes on Listed Companies' Governance, the appendix 14 Corporate Governance Codes of Hong Kong listing rules etc., which were issued by CSRC, SSE, HKEX and the Articles of Association of the Company, establishes a corporate governance structure with clear rights and responsibilities, checks and balances and an effective internal control system, and operates in strict accordance with the law, clarifying the establishment, staffing, responsibilities and working procedures of the Board of Directors, Supervisors, management and all levels of the Company. The Company continues to improve the corporate governance structure and the level of the Company's operation, by establishing and perfecting internal control system, and promote the standardised management to enhance the level of corporate governance.
2. Information Disclosure
   In accordance with the requirements of the "Administrative Measures for the Disclosure of Information of Listed Companies" and the "Management Rules for Information Disclosure", the secretary of the Board and the Board secretary office of the Company are responsible for the disclosure of information and management of investor relations. The Company strictly complies with the requirements of relevant laws and regulations at both listing places to fulfil the responsibilities of disclosure in a truthful, precise and complete manner, so as to ensure the timeliness and consistency of disclosure at both listing places.
   In 2020, the Company continued to improve the level and quality of information disclosure, protected the legitimate rights and interests of the Company, shareholders, customers, creditors and other stakeholders. According to relevant national laws and regulations, regulatory requirements of listed companies and the Articles of Association, the Company had defined the basic principles of information disclosure, and established a management process of information disclosure with clear rights and responsibilities and detailed process. The Company had been trying to pass on its real operation information to the market and investors in various ways, so as to achieve "warm" information disclosure and help investors understand the Company. The Company disclosed its operating financial data to all investors and stakeholders in the form of regular reports, and fully disclosed the information of the General Meeting of shareholders, including the report of the Board of Directors, the report of the Board of Supervisors, the report of financial budget and final accounts, the performance report of independent Directors, the performance report of the Audit Committee, and other relevant information related to the performance of the Board of Directors, corporate governance, financial status etc. In the form of "Social Responsibility Report" and "ESG Report", the Company actively disclosed the environmental, economic and social indicators of the Company's operation and management to domestic and foreign investors and stakeholders, demonstrated the Company's core values of "dedication and responsibility, collaborative innovation", and made continuous efforts and positive achievements in economic development, building green projects, and building a harmonious community.

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2.4 Investor Relations

The Company emphasises the management of the investor relations, and passes the corporate information to investors via various channels. Through investor hotlines, SSE's "E-interaction" platform, investor emails and teleconferences, reception of visits, performance meetings, investor meetings etc., it directly conveys the Company's confidence in the future sustainable development and the realisation of strategic planning objectives to investors, effectively improving investors' understanding of the Company and maintaining the relationship between the Company and investors.

In 2020, the Company regularly disclosed business performance data and reports, interpreted the main reasons for performance changes and the business development of major business lines, fully considered the legitimate rights and interests of customers, employees and other stakeholders, and ensured the sustainable, harmonious, healthy and standardised development of the Company, so as to achieve a win-win situation between the Company and all stakeholders and maximise the interests of all parties.

2.5 Customer Relations Management

The Company strictly complies with the relevant policies and regulations of China to provide customers with healthy and safe services. The Company also strictly protects customers' privacy in the course of services. In order to provide customers with the best quality service continuously, Shanghai Dazhong Gas started the operation of an uninterrupted and 24-hour gas hotline 962777 to deal with any gas repair, service consultation, business applications, accounting inquiries, liquefied gas bottles delivery, accepted complaints and others.

For urban transportation business sector, in addition to the launch of mobile application, Dazhong Transportation retains the traditional customer service hotline 96822 to meet the needs of the elderly, people with disabilities, foreign tourists and other special groups. Once the passengers encounter problems while taking the cars, they can call the hotline anytime to contact the platform and solve the problem in time.

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3 Environmental Performance

3.1 Overview of Relevant Environmental Policies in Key Business Areas

Policies and Regulations	Date of issuance and Issuer	Main contents
Directory of Classified	December 20, 2019,	It is stipulated that 107 industries and
Licences on Fixed Pollution	Ministry of Ecology and	4 general working procedures are
Sources (2019 Version)	Environment	included in the pollutant discharging
		licence management. Meanwhile,
		o t h e r t h a n t h o s e i n d u s t r i e s , i f
		determined by the environmental
		authorities as key pollutant discharging
		entities, or the discharging volume has
		reached a certain amount, the licence
		management will also apply.
Law of the People's	October 26, 2018, the	P r o t e c t i n g a n d i m p r o v i n g t h e
Republic of China on	Standing Committee of the	environment, preventing from and
Prevention and Control	National People's Congress	controlling air pollution, safeguarding
of Atmospheric Pollution		p u b l i c h e a l t h , p r o m o t i n g t h e
(Amended in 2018)		construction of ecological civilisation,
		and promoting sustainable economic
		and social development.

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Policies and Regulations	Date of issuance and Issuer	Main contents
Law of the People's	August 31,2018, the	It is suggested that we should establish
Republic of China on	Standing Committee of	relevant legal systems and systems,
Prevention and	National People's Congress	strengthen environmental supervision
Control of Soil Pollution		of industrial and mining enterprises,
		cut off pollution sources and curb the
		expansion trend. We will implement
		graded and classified management
		of contaminated land, establish a
		technical system, and gradually
		promote risk control.
Three-year Action Plan	June 27, 2018, the State	It is proposed that after three years
for Winning the Blue Sky	Council	of efforts, the total emission of major
Defense War		atmospheric pollutants should be
		greatly reduced, and greenhouse gas
		emissions should be reduced in a
		coordinated way, PM2.5 concentration
		s h o u l d b e f u r t h e r s i g n i f i c a n t l y
		reduced, days of heavy pollution
		should be significantly reduced,
		environmental air quality should be
		significantly improved, and people's
		happiness of blue sky should be
		significantly enhanced.
Shanghai 2018-2020	March 29, 2018, Shanghai	In 2020, the ecological quality,
Environmental Protection	Municipal Government	ecological space and resource usage
and Development Three-		rate of Shanghai shall be significantly
year Action Plan		improved, the environmental risks
		shall be controlled, green production
		and living shall be enhanced, and the
		ecological governance and treatment
		capabilities shall be significantly
		improved.
National Plan	April 10, 2017, Ministry of	The plan will promote about 900
on Environmental	Ecology and Environment	environmental protection standards
Improvements for		to be revised and release about 800
The 13th Five-year Plan		environmental standards, including
		about 100 quality standards and
		pollutant discharge (control) standards,
		about 400 environmental monitoring
		standard classes, basic environmental
		standards and about 300 regulation
		standards.

15

Policies and Regulations	Date of issuance and Issuer	Main contents
Law of the People's	November 7, 2016, the	The People's Republic of China
Republic of China on the	Standing Committee of	prevents and controls the solid waste
Prevention and Control of	National People's Congress	pollution on the environment, and
Environmental Pollution		decreases the quantity generated
by Solid Waste (Amended		and harm of solid waste. The fully
in 2016)		and rationally use of solid waste and
		applying the principle of harmless
		disposal of the solid waste, promoting
		the development of clean production
		and recycling economy.
Air Pollutant Discharge	March 28, 2016, Shanghai	This standard specifies the relevant
Standards for Urban	Environmental Protection	regulations including the emission
Wastewater Treatment	Bureau and Shanghai	l i m i t s o f	a i r p o l l u t a n t f r o m
Plants (DB31/982-2016)	Municipal Bureau of Quality	municipal	wastewater treatment
	and Technical Supervision	plant, monitoring and operation
		management, the requirements of
		monitoring and the implementation
		and supervision of the standards.
Law of the People's	April 24, 2014, the Standing	Protect and improve the environment,
Republic of China on	Committee of National	prevent pollution and other public
Environmental Protection	People's Congress	hazards, safeguard public health,
(Amended in 2014)		spur the ecological civilisation and
		sustainable development of economy.

3.2 Emissions

3.2.1 Emissions-related Indicators

Regarding the waste gas and greenhouse gas emissions, Dazhong Public Utilities follows the Law of PRC on Prevention and Control of Atmospheric Pollution, Atmospheric Pollution Discharging Standards for Urban Wastewater Treatment Plants etc., and strives to lower the environmental impact to a minimum level. Emissions from fossil fuel combustion by Dazhong Public Utilities include NOx and PM etc. Most of the exhaust emissions come from the combustion of motor vehicle gasoline, diesel and liquefied petroleum gas in the urban transportation and logistics sectors. In 2020, the total waste gas discharging volume of Dazhong Public Utilities stood at approximately 1,520.79 tons.

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Dazhong Public Utilities causes direct and indirect emission of greenhouse gases due to the consumption of fossil fuels and the use of electricity. In 2020, Dazhong Public Utilities emitted about 2.145 million tons of carbon dioxide equivalent in total, and the emission density is 43,300 tons of carbon dioxide equivalent/RMB100 million. Among them, the direct greenhouse gas emissions caused by the burning of fossil fuels were about 161,800 tons of carbon dioxide equivalent, and the indirect greenhouse gas emissions caused by the use of electricity were about 1.9831 million tons of carbon dioxide equivalent.

Regarding the discharging of hazardous and non-hazardous waste, Dazhong Public Utilities follows the relevant laws and regulations, including the Law of PRC on Prevention and Control of Environmental Pollution by Solid Waste, Implementation Plan on Household Waste Classification etc. In 2020, the Company discharged a total amount of 19,330 cubic metres of waste water with a discharge density of 390.27 cubic metres/RMB100 million, a total amount of 56,201.11 tons of non-hazardous solid waste with a disposal density of 0.0113 tons/thousand RMB, a total amount of 6,304.9 kg of hazardous solid waste with a disposal density of 127.29 kg/RMB100 million.

All liquid and solid wastes listed above had been properly disposed in accordance with relevant national environmental protection policies and regulations. The sludge generated by Jiangsu Dazhong was sent to farms, building materials factories and power plants designated by the government as raw materials for making fertilizer, bricks and power generation, so as to realise the secondary recycling of sludge with reduced waste productions.

The Company has achieved remarkable results in implementing measures to reduce exhaust gas and greenhouse gas emissions. The urban transportation sector has further increased the proportion of new energy vehicles. The restrictions on the number of gasoline vehicles in the transportation sector and the launch of new energy vehicles are crucial to the Company's emission reduction. In 2020, Dazhong Transportation actively promoted the operation of new energy taxis in accordance with the requirements of national and local government's new energy vehicle renewal policies. As of the end of 2020, the Company had put 243 pure electric new energy taxis into operation, so as to achieve the goal of reducing greenhouse gas emissions year by year. The greenhouse gas emissions of Dazhong Public Utilities in 2020 had been reduced by about 3.17 million tons of CO2 equivalent compared with that in 2019.

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1. Resources Usage
   3.3.1 Resources Consumption
   On the energy consumption perspective, Dazhong Public Utilities strives to follow the environmental protection-related policies to improve its energy usage efficiency. Through the development of annual energy consumption targets, the Company promotes the improvement of energy efficiency. The Company obtains applicable water sources according to the relevant national environmental protection policies and regulations, which results in no problems. In 2020, the Company consumed about 66 million litres of gasoline, 6.492 million litres of diesel and 80 million cubic metres of liquefied gas. Meanwhile, all businesses consumed a total amount of about 2.819 billion kilowatt-hours of electricity and 6.9455 million tons of water, with water-consumption density of 1.40 tons/thousand RMB.
   In 2020, the energy consumption of the Company was equivalent to about 748,300 tons of standard coal, of which about 54.19% came from the urban transportation sector, about 43.79% from the infrastructure investment and operation sector, and the rest of the energy consumption came from the wastewater treatment, logistics and transport, city gas, and financial sectors.
   The main businesses of Dazhong Public Utilities are city gas, wastewater treatment, urban transportation, infrastructure investment and operation, logistics and transport, and financial investment, which do not include the production of finished products or involve packaging materials. Therefore, the "total packaging material used for finished products with reference to per unit produced" is not applicable to Dazhong Public Utilities.
2. Environment and Natural Resources
   Based on the relevant national environmental protection policies and emission requirements, Dazhong Public Utilities carries out business operation, and strictly deals with the emissions and pollutants. All emissions and pollutants are through detailed testing and records, which meet the requirements of relevant national environmental protection regulations and emission regulations, and have no significant impact on the environment and natural resources.

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3.5	Environmental Indicators
	Indicator	Unit	Data in 2020	Data in 2019
	Emissions
	Total greenhouse gas emission	ton	2,144,966.06	6,180,677.32
	(scope I and II)
	Greenhouse gas emission per capita	ton/person	1,016.34	2,027.12
	Direct greenhouse gas emission (scope I)	ton	161,841.91	5,215,084.20
	Indirect greenhouse gas emission (scope II)	ton	1,983,124.15	965,593.12
	Total reduced greenhouse gas emission	ton	3,170,280.92	/
	(scope I and II)
	Solid waste	ton	13.517	0.32
	Wastewater	ton	19,330	2,550.50
	Household garbage	ton	17.883	/
	Kitchen garbage	ton	35.218	/
	Office garbage	ton	10.750	/
	Waste oil	ton	0.504	0.5
	Waste fluorescent tube	ton	0.142	0.12
	Wastewater treatment volume	10 thousand tons	14,323.23	13,968.22
	Daily average treatment volume	10 thousand tons	39.15	17.68
	Reduced COD discharge	ton	27,741.17	37,458.09
	Reduced BOD discharge	ton	15,187.17	17,954.89
	Reduced NH3 discharge	ton	3,659.15	4,300.72
	Reduced TN discharge	ton	3,289.51	4,012.85
	Reduced TP discharge	ton	398.06	557.97
	Total sludge discharge	ton	55,782.01	61,778.49
	Exhaust gas	ton	1,520.79 (Note)	899.37
	Resources usage
	Natural gas	10 thousand	103.98	97.13
		cubic metres
	Travel distance of corporate vehicles	10 thousand kilometres	58,225.79	101,112.26
	Gasoline	10 thousand litres	6,553.46	1,132.33
	Diesel	10 thousand litres	649.2	330.62
	Electricity usage	10 thousand	281,893.98	122,792.14
		kilowatt-hour
	Electricity usage per capita	10 thousand	95.17	40.27
		kilowatt-hour/person
	Daily water usage	10 thousand tons	694.55	728.37
	Daily water usage per capital	10 thousand tons/	0.23	0.24
		person
	Total water usage saved	tons	33.82	/
	Other items
	Proportion of electric vehicles	%	3	1
	Proportion of LPG hybrid vehicles	%	15	28

Note: The exhaust gas emissions in 2020 included carbon monoxide (CO), hydrocarbons (HC), nitrogen oxides (NOx) and particulate matters (PM), of which the NOx emission was 130.92 tons. The statistical data of exhaust gas emissions in 2019 did not contain CO and HC, and the NOx emission was 819.14 tons

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4 Social Responsibilities

4.1 Employment and Labour

4.1.1 Employment and Labour Standards

Dazhong Public Utilities and its subsidiaries are strictly in compliance with the various relevant national personnel laws and regulations, e.g. Labour Law and Labour Contract Law etc., and provide all employees with benefits they should enjoy when conducting recruitment. The Company has developed sound employment rules and regulations, and make clear provisions of the rights and obligations imposed on the employees in the employee handbook.

The employee handbook stipulates that the working hour of employees per day is eight hours and the average working time per week is 40 hours. According to the relevant national regulations, the Company shall timely pay the social insurance expenses such as housing funds, endowment insurance funds, medical insurance funds, unemployment insurance funds and other social insurance expenses for employees in full. Meanwhile, the employees are entitled to any lawful benefit, remuneration and leave. During the recruitment, the Company adhered to the principle "open, fair and just" to take two-way choice, considered candidates on merit, avoided any discriminatory behaviour.

For the mutual development of the Company and the employees, each employee of Dazhong Public Utilities and its subsidiaries has the opportunity to be trained and promoted. Based on the different stages of their development, the Company and its subsidiaries have formulated corresponding training plans for all employees to have, including in-house training or external training. According to the Company's competitive incentive mechanism, the employees can also obtain the opportunity of promotion through the forms including self- recommendation and job competition, and completing comprehensive evaluation.

As of December 31st, 2020, the total number of employees of Dazhong Public Utilities and major subsidiaries was 2,962. In terms of the professional composition, in 2020, the staff of Dazhong Public Utilities and its subsidiaries mainly included production personnel, accounting for more than 80%, while the rest of the staff as technical, administrative, financial and sales personnel. In terms of the education background, the proportion of the employees of Dazhong Public Utilities and its subsidiaries with junior college degree was about 50%, which was most obvious in the logistics and transport sector. In addition, the number of undergraduates and above had increased slightly over the previous year, reflecting the education background and quality level of staff were rising year by year.

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4.1.2 Employees' Health and Safety Assurance

Dazhong Public Utilities pays close attention to the health and safety of its employees, and strictly follows the Law of PRC on Occupational Disease Prevention, Rules of Workplace Hygiene Supervision, the Industrial and Commercial Insurance Ordinances etc., to create a safe, healthy working environment with affinity.

In order to ensure safe production, the Company has issued the Notice on Strengthening the Safe Production of the Group and its Subsidiaries 《( 關於加強集團公司及下屬各公司安 全生產工作的通知》) and other relevant documents to require all business segments to take practical measures to ensure safe production, especially the safe production during New Year's Day, Chinese New Year and other holidays, which prevented the occurrence of safety accidents effectively. It also actively holds safety work meetings to point out the respective focus of safety management of all major business segments. The Company and its operating subsidiaries sign the letter of responsibility for safety production of the year to establish a comprehensive safe production accountability mechanism. Such letter of responsibility provides the responsibilities and annual working target of safe production of all operating subsidiaries and specified the safe production duties to ensure a fully controllable safe production system of the Company.

The Company considers the person in charge of each major business segment as the primarily responsible person of safe production who shall be fully responsible for the safe production of the respective entity in accordance with the safe production principles of "the person in charge shall be responsible" and "production management shall encompass safety management". In addition to being compliant with the Safe Production Law, Fire Control Law, Labour Law and other regulations as well as promoting the implementation of regulations, systems and standards of the PRC, the Company and respective entity on safe production inspect and supervise the performance of safety duties of the management and staff of relevant entities and conducted regular safety inspection so as to make timely rectification for the safety hazards identified and take corresponding measures to matters beyond control in a timely manner.

The Safe Production Management Regulations issued by the Company in October 2015 also provides clear requirements on the safety management system of the project contractors. All contractors and construction entities of all kinds of projects shall implement the project contracting safety management system set out in the above regulations. The Company conducts regular inspections on the qualification, safety and quality assessment of the contractors, requires the contractors to make written safety commitments and sign the Contracting Project Safety Agreement so as to ensure that the construction staffs receive safe production training and the special operating personnel possess safe operation certificates. The Company also frequently supervises the safety of the construction sites, rectifies the unsafe behaviours and provides safety re-education to the persons in breach of relevant rules. Upon the completion of construction, acceptance inspections shall be conducted on the quality and safety of the projects, and written assessment shall be issued for the projects.

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4.1.3 Employees' Development and Training

In order to help employees' personal growth, various business sectors of the Company provide employees with multiple forms of on-the-job training or off-the-job training. The Company also provides various forms of vocational training for employees, such as initial training, job training, mentoring and skill-level training etc. In addition, the Company helps employees achieve ability improvement and personal growth through skills competition, re- training of employment qualification certificate, etc.

4.1.4 Legal Employment and Treatment

The Company actively prevents child labour or forced labour during the business operation in accordance with the relevant requirements of the laws, e.g. the Law on Protection of Minors, the Rules on Forbidden Use of Child Labour, and adheres to the zero tolerance attitude to child labour and forced labour in any form. We also require the elimination of such issues in the assessment of suppliers

The employee satisfaction survey has reached 100% of satisfaction. The Company's employee benefits include statutory benefits (such as five insurances and one fund) and corporate benefits (such as working meals, holiday gifts, work uniforms, group insurance, physical examination, paid annual leave, poverty alleviation, medical expenses reimbursement, etc.).

The Company has formulated a policy to prevent excessive employment and implemented an eight-hour working system (8:00-11:30,13:00-17:00). In order to ensure the rest time of employees, overtime must be strictly controlled. If overtime is arranged for holidays due to work needs, it must be approved by the senior management in charge. The person in charge of the unit or department shall sign and issue an overtime slip, the person doing the shift shall be given one copy, and the attendance clerk shall check attendance with the slip. Due to special circumstances such as rush repair, the person in charge of the unit or department shall arrange overtime, and report to the senior management in charge in time afterwards.

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4.2 Operation Management

1. Supply Chain Management
   The Company and its subsidiaries have formed clear requirements on the selection and management of suppliers, actively responded to the Corporate Internal Control and its implementation guidelines issued by five ministries and commissions of the PRC central government as well as the focus points of the management, ensured the compliant management and appropriate selection of suppliers, and ensured the effective control of operational risks resulting from the inappropriate selection, unreasonable approach, malpractice or fraud of the suppliers. In addition, the standards of acceptance inspection for suppliers must be specific to ensure the compliant acceptance inspection procedures and elimination of abnormality in the acceptance inspection. For any abnormality identified in the acceptance inspection, the staff of general manager's office shall find out the reasons as soon as possible and handle the problems in a timely manner.
   The Company has established a database of suppliers (including the suppliers with terminated cooperation). The name, address, contact information, scope of operation, length of cooperation with the Company and other relevant information of the suppliers are recorded in the database, and the Company sorts out the database regularly to ensure timely update of the information.
2. Anti-corruptionMeasures
   Dazhong Public Utilities has been in strict compliance with relevant laws, regulations and policies, e.g. the Criminal Law of PRC, the Anti-money Laundering Law of PRC etc., to standardise the operating and procurement behaviours, and strive to prevent bribery, blackmailing, fraud, AML etc. The Company implements rotation mechanism for procurement posts for management on a regular or irregular basis. Procurement personnel shall sign the letter of commitment for integrity (or similar guarantees) to undertake to refuse any rebates or benefits from the suppliers during the procurement process, avoid actions in conflict with the interests of the Company and report to the Company for any conflict of interests in a timely manner. The letter of commitment for integrity provides specific provisions in respect of the punishment for procurement personnel in violation. For procurement of key large production equipment with relatively large sum of money, the Company will carry out the procurement in the form of public tender and determine the procurement price in a scientific and reasonable manner.
   Anti-corruption measures include: (1) strengthen the education of honest and clean work for Party members and workers at key posts; (2) complete the discipline inspection-related management rules and embed the construction of Party conduct and integrity into internal control management; (3) carry out regular integrity and warning education activities to all employees of the Company.

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The whistle-blowing procedures: (1) classification and registration of issue clues; (2) collective study and judgment; (3) communication or preliminary verification; (4) settlement.

During the Reporting Period, there were no corruption lawsuits involving the Company.

4.2.3 Product Liabilities

The Company strictly abides by the national Regulations on Taxi Operation and Service Management, the Regulations of Shanghai Municipality on Taxi Management, the Regulations on Road Transportation Management, the Regulations on City Gas Safety Management and other relevant regulations and industry norms to ensure the quality and safety of the services provided by the Company.

The main business of Dazhong Public Utilities does not produce finished products. Therefore, the contents of "percentage of total products sold or shipped subject to recalls for safety and health reasons" and "description of observing and protecting practices" are not applicable to Dazhong Public Utilities.

4.3 Community Investment

The labour unions of Dazhong Public Utilities and its subsidiaries actively participated in a number of social activities such as supporting the education of students in poverty, caring for lone elderly, providing public convenience services, nurturing employees' social service awareness etc., boosting the Company's reputation in communities.

On March 6, 2020, the secretaries of the Party organisations of the two listed companies, Dazhong Transportation and Dazhong Public Utilities, went to the Tianlin street of Xuhui District of Shanghai together to give the donations of the Dazhong Party members and the employees to the Party Working Committee of Tianlin street and the Tianlin community foundation respectively. In response to the call of the Central Committee of the Party, which is centered on Comrade Xi Jinping, the Party members and the staff of Dazhong actively contributed to the COVID-19 prevention and control work. In just one week, Party organisations had received donations from Party members and the employees worth more than RMB250,000. The donations would be given to Party members at higher ranks, and used to comfort the medical workers, grassroots cadres and masses, public security police and community workers fighting the battle against the pandemic, as well as the people living with difficulties due to the pandemic. The public donations were remitted to the Tianlin community foundation to support and comfort the hard-working community workers working in the front line of disease prevention and control, and convey the deep feelings of Dazhong and the Tianlin community.

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4.4 Community Indicators
Indicator	Unit	Data in 2020	Data in 2019
Employment
Total employees	person	2,962	3,055
Divided by gender
Male	person	2,350	2,494
Female	person	612	561
Divided by education background
Undergraduates or above	person	683	588
Junior college graduates	person	581	535
Technical school graduates	person	362	843
High school graduates	person	374	354
Junior school graduates	person	962	735
Divided by age
Below 25	person	226	188
26-30	person	308	341
31-35	person	403	429
36-40	person	338	445
41-45	person	411	402
46-50	person	460	514
51-55	person	465	397
Above 56	person	351	339
Divided by level
Senior management	person	10	10
Medium management	person	31	34
Grassroots employees	person	19	25
Female management	person	25	26
Employees of ethnic minorities	person	1	1
New employees	person	2	2
Dispatched employees	person	0	0
Employee turnover rate
Total employees lost	person	192	467
Employee turnover rate	%	6.5	13.26
Below 25	%	0.1	/
26-30	%	0.16	/
31-35	%	0.3	/
36-40	%	2.4	/
41-45	%	1.62	/
46-50	%	0.3	/
51-55	%	0.33	/
Above 56	%	1.25	/
Male employee turnover rate	%	5.8	18.08
Female employee turnover rate	%	0.7	1.43
Group employee turnover rate	%	0.27	0
Subsidiary/branch employee turnover rate	%	6.23	15.35

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Indicator	Unit	Data in 2020	Data in 2019
Employee benefits
Employees taking physical examinations	person	2,072	/
Physical examination ratio	%	70	/
Satisfaction degree	%	100	100
Employment type
Full-time	person	2,962	3,055
Part-time	person	0	0
Health and safety
Death toll due to work	person	0	0
Death toll due to work ratio	%	0	0
Working days lost due to work-related	day	132	/
injuries
Social insurance coverage	%	100	100
Supply chain management
Domestic suppliers	No.	215	131
Hong Kong and overseas suppliers	No.	0	0
Training and development
Various safety training	time	22	/
Existing video courses	No.	12	0
Total length of video courses	hour	30	0
Various offline training	time	83	/
Employees participating in various	person	3,289	/
safety training
Money invested for employee training	RMB10 thousand	203.96	/
Organisation of training activities	time	85	/
Employees participating in training	person	3,234	/
Length of employee training per capita	hour	186.63	/
Employees participating in AML tests	person	32	32

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5 Future Planning

5.1 Risks and Opportunities of ESG

Natural resources available for use by the enterprises will decrease in the future, which brings both challenges and opportunities for our corporate development. In recent years and in the foreseeable future, we have been thinking about how to create more economic and social benefits with limited resources. We continuously explore the use of new energy (especially green energy) in our business operation and how to optimise, integrate and use the resources in a highly efficient manner with the support of the latest information science and technology, thereby achieving sustainable development.

The awareness of environmental protection and sustainable development among the consumers will enhance continuously in the future, which means that the consumers will gradually expect the companies to assume their social responsibilities and make contributions to sustainable development of the society and the environment with their resources. In the future market, the companies' performance in sustainable development may directly or indirectly affect the buying decision of the consumers. In addition, the companies' commercial activities will be more closely linked with the neighbouring community, and the companies shall actively contribute to the community and assume their responsibilities for the development of community.

China's legal system is continuously developing, and more and more matured legal framework and laws and regulations will be launched, which poses new problems and brings growing opportunities to our corporate governance. As such, we will continuously improve our management system and actively respond to the opportunities and challenges in the future.

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5.2 Strategic and Organisational Framework

5.2.1 Spurring Sustainable Development Methods

The transportation business under Dazhong Public Utilities is one of the most important taxi operators in Shanghai, which possesses tens of thousands of various vehicles. In the future development, the Company will continuously explore the use of clean energy in taxi operation, further optimise the energy structure, reduce the use of traditional fossil energy and achieve low-carbon economy. In addition, we will continue to provide driving training in relation to energy saving and emission reduction to drivers in order to further reduce the carbon footprint. We believe that the continuous efforts of public transportation business in energy saving and emission reduction will bring positive effects to the sustainable development of vehicle leasing industry. With the launch of Dazhong Chuxing platform and its promotion in various cities, we believe that data and information technology has led the public transportation business into a new stage in energy saving, emission reduction and maximized use of resources. In recent years, we continuously improved our ability in environment business and optimised the wastewater treatment business. With the promulgation of the Directory of Classified Licences on Fixed Pollution Sources (2017 version) in 2017, the government, regulatory authorities and the general public become more and more concern about the protection of water resources. In response to the increasing demand for wastewater treatment, we will continue to improve the wastewater treatment business in terms of technology and treatment volume.

As the leading public utility provider in Shanghai, our business is highly related to the daily life of consumers, which means our work is closely linked with the community. For community contribution in the future, we will continue to focus on strengthening the interaction with neighbouring communities, increasing the investment in community and encouraging our employees to participate in community services, understand the needs of consumers, provide the most quality services to the consumers and become part of the community. In addition, employees are the foundation for the continuous development of the Company, and we undertake to continue to create friendly and harmonious working environment for our employees. We will continue to reinforce safe production and the idea of "safety first", implement the safety production responsibilities of all levels of staff, making sure the "implementation of all levels", and protect the employees' entitlement to reasonable salary and benefits and provide a variety of training opportunities.

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5.2.2 Development Strategy and Operation Plan

1. Actively carry out effective investment projects, strengthen the Company's sustainable development momentum
   The reserve and expansion of public utility projects are the first priority in the Company's operation, the long-term and strategic tasks of Dazhong Public Utilities in investment and operation of public utility sector, and also the driving factors for maintaining and improving the Company's core competitiveness and achieving sustainable development. Dazhong Public Utilities will actively seek the opportunities of merger, acquisition and development of domestic and foreign quality projects in gas supply and environment industries, emphasis on increasing the Company's investment proportion in public utility business, and continuously improve the overall profitability of the Company's principal businesses. Meanwhile, it will also explore and facilitate the interaction between the Company's financial business and investment business to form a model of "investment and loan interaction", integrate and adopt various financing models to create new competitive strength, and promote the strategic innovation in the transformation and development of the Company's financial investment business.
2. Establish a talent reserve system for the Company, carry out talent management based on demand
   Human resources are important for improving corporate competitiveness and gaining competitive strength. As the opening of the "14th Five-year Plan", Dazhong Public Utilities is entering the new phase of corporate development. With the gradual expansion of business and continuous enhancement of requirements for management and control, based on the three-year human resources plan of the Company, the Company will accelerate the recruitment and reserve of talents in operation, finance, investment and profession technology sectors needed by the Company to ensure that the demand for human resources will be satisfied in quantity and quality when and where needed. Meanwhile, the Company will further study and optimise the employee performance assessment and incentive mechanism, stimulate the initiative and creativity of employees, and continuously improve the overall competitiveness of the employees, departments and the Company in the market.

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1. Strengthen the position of safety-related work, spur the development of safety culture
   The Company will continue to improve the dual mechanisms of safety risk classification and flaw identification governance, detail the control and management plans, formulate precise control measures, ensure every risk point is under control, and prevent the production accidents. Meanwhile, the Company will continue to enhance the emergency management work, improve the capabilities to handle all types of events, timely revise the emergency plans, develop emergency handling teams, reinforce the management of emergency supplies, to ensure the emergency management work is correctly implemented. In addition, the Company will continue to strictly follow the construction quality standards and management rules, take all safety measures, and conduct various safety knowledge publicity activities, to continuously push forward the development of safety culture, and strengthen the safety knowledge and self-prevention capabilities of all employees.
2. Strengthen the effectiveness of information-aided management, optimise and improve the centralised management and control system
   The Company will fully utilise the function of information-aided management, establish and optimise the information-based and centralised management platform for capital management and control, business management, human resources and support to decision making, continuously improve the Company's level of information-based and centralised management and control, and facilitate the achievement of transition from improving management efficiency to strengthening management effectiveness. The Company will also continuously strengthen its efforts in supervision of internal control and management, continuously optimise the Company's internal management system and procedures, and enhance the management effectiveness of the Company's OA platform.

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6 Appendix

6.1 Terms and Abbreviations
CSRC	China Securities Regulatory Commission
SSE	Shanghai Stock Exchange
HKEX	The Stock Exchange of Hong Kong Limited
Dazhong Public Utilities,	Shanghai Dazhong Public Utilities (Group) Co., Ltd.
the Company, we
Reporting Period/	Accounting Period from January 1, 2020 to December 31, 2020
The Annual 2020
Board	The Board of Directors of the Company
Supervisory Board	The Supervisory Board of the Company
General Meeting	The General Shareholders' Meeting of the Company
Articles of Association	The Article of Association of the Company
Shanghai Dazhong Gas	Shanghai Dazhong Gas Co., Ltd.
Dazhong Transportation	Dazhong Transportation (Group) Co., Ltd.
Jiangsu Dazhong	Jiangsu Dazhong Water Group Co., Ltd.
SEIS	Shanghai Electronic Intelligence System Co., Ltd.
Dazhong Financial Leasing	Shanghai Dazhong Financial Leasing Co., Ltd.

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6.2 Index

HKEX's index of Environmental, Social and Governance Reporting Guide

			Disclosure
Aspects	Key Performance Indicators	Requirements	Places
A. Environmental
Aspect A1: Emissions
General	Information on the policies and compliance with	●	3.1
disclosure	relevant laws and regulations that have a significant
	impact on the issuer relating to air and greenhouse
	gas emissions, discharges into water and land, and
	generation of hazardous and non-hazardous waste.
A1.1	The types of emissions and respective emissions data.	●	3.2.1, 3.5
A1.2	Total greenhouse gas emissions (in tons) and (if	●	3.2.1, 3.5
	applicable) density
A1.3	Total hazardous waste produced (in tons) and (if	●	3.2.1, 3.5
	applicable) density
A 1.4	Total non-hazardous waste produced (in tons) and (if	●	3.2.1, 3.5
	applicable) density
A1.5	Description of emission reduction steps taken and	●	3.2.1
	achieved results
A1.6	Description of hazardous and non-hazardous waste	●	3.2.1
	handling methods, production reduction steps taken
	and achieved results
Aspect A2: Resources Usage
General	Policies on the efficient use of resources, including	●	3.1, 3.3.1
disclosure	energy, water and other raw materials.
A2.1	Direct and/or indirect energy consumption by type	●	3.3.1, 3.5
	(e.g. electricity, gas or oil) in total and intensity
A2.2	Water consumption in total and intensity	●	3.3.1, 3.5
A2.3	Description of energy use efficiency plan and	●	3.3.1
	achieved results
A2.4	Description of whether there is any issue in sourcing	●	3.3.1, 3.5
	water that is fit for purpose, water efficiency plan and
	achieved results
A2.5	Total packaging material used for finished products	●	3.3
	with reference to per unit produced.		(not applicable)

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			Disclosure
Aspects	Key Performance Indicators	Requirements	Places
Aspect A3: Environment and Natural Resources
General	Policies on minimising the issuer's significant impacts	●	3.4
disclosure	on the environment and natural resources.
A3.1	Description of the significant impacts of business	●	3.4
	activities on the environment and natural resources
	and the actions taken to manage them.
B. Social
Employment and Labour Practices
Aspect B1: Employment
General	Information on the policies and compliance with	●	4.1.1
disclosure	relevant laws and regulations that have a significant
	impact on the issuer relating to compensation and
	dismissal, recruitment and promotion, working
	hours, rest periods, equal opportunity, diversity, anti-
	discrimination, and other benefits and welfare.
B1.1	Total workforce by gender, employment type, age	○	4.4
	group and geographical region.
B1.2	Employee turnover rate by gender, age group and	○	4.4
	geographical region.
Aspect B2: Health and Safety
General	Information on the policies and compliance with	●	4.1.2
disclosure	relevant laws and regulations that have a significant
	impact on the issuer relating to providing a safe
	working environment and protecting employees from
	occupational hazards.
B2.1	Death toll and ratio due to work	○	4.4
B2.2	Working days lost due to work-related injuries	○	4.4
B2.3	Description of occupational health and safety	○	4.1.2
	measures adopted, and how they are implemented
	and monitored.
Aspect B3: Development and Training
General	Policies on improving employees' knowledge and	●	4.1.3
disclosure	skills for discharging duties at work. Description of
	training activities.
B3.1	The percentage of employees trained by gender and	○	4.4
	employee category (e.g. senior management, middle
	management).
B3.2	The average training hours completed per employee	○	4.4
	by gender and employee category.

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			Disclosure
Aspects	Key Performance Indicators	Requirements	Places
Aspect B4: Labour Standards
General	Information on the policies and compliance with	●	4.1.4
disclosure	relevant laws and regulations that have a significant
	impact on the issuer relating to preventing child and
	forced labour.
B4.1	Description of measures to review employment	○	4.1.4
	practices to avoid child and forced labour.
B4.2	Description of steps taken to eliminate such practices	○	4.1.4
	when discovered.
Operating Practices
Aspect B5: Supply Chain Management
General	Policies on managing environmental and social risks	●	4.2.1
disclosure	of the supply chain.
B5.1	Number of suppliers by geographical region.	○	4.4
B5.2	Description of practices relating to engaging	○	4.2.1
	suppliers, number of suppliers where the practices are
	being implemented, and how they are implemented
	and monitored.
Aspect B6: Product Responsibility
General	Information on the policies and compliance with	●	4.2.3
disclosure	relevant laws and regulations that have a significant
	impact on the issuer relating to health and safety,
	advertising, labelling and privacy matters relating
	to products and services provided and methods of
	redress.
B6.1	Percentage of total products sold or shipped subject to	○	4.2.3
	recalls for safety and health reasons.		(not applicable)
B6.2	Number of products and service related complaints	○	2.5
	received and how they are dealt with.
B6.3	Description of practices relating to observing and	○	4.2.3
	protecting intellectual property rights.		(not applicable)
B6.4	Description of quality assurance process and recall	○	4.1.2
	procedures.
B6.5	Description of consumer data protection and	○	5.2.1
	privacy policies, and how they are implemented and
	monitored.

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			Disclosure
Aspects	Key Performance Indicators	Requirements	Places
Aspect B7: Anti-corruption
General	Information on the policies and compliance with	●	4.2.2
disclosure	relevant laws and regulations that have a significant
	impact on the issuer relating to bribery, extortion,
	fraud and money laundering.
B7.1	Number of concluded legal cases regarding corrupt	○	4.2.2
	practices brought against the issuer or its employees
	during the Reporting Period and the outcomes of the
	cases.
B7.2	Description of preventive measures and whistle-	○	4.2.2
	blowing procedures, and how they are implemented
	and monitored.
Community
Aspect B8: Community Investment
General	Policies on community engagement to understand the	●	4.3
disclosure	needs of the communities where the issuer operates
	and to ensure its activities take into consideration the
	communities' interests.
B8.1	Focus areas of contribution (e . g . education,	○	4.3
	environmental concerns, labour needs, health,
	culture, sport).
B8.2	Resources contributed (e.g. money or time) to the	○	4.3
	focus area.

The table is referring to the Appendix 27 of HKEX's Listing Rules "Environmental, Social and Governance Reporting Guide".

Note: ● for "not applicable on explanation" indicators, ○ for "advised to be disclosed" indicators

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6.3 Awards Winning

No.	Unit	Award	Award-presenting institution
1	Dazhong Public Utilities	2020	"Gold Medal's Annual	Shanghai United Media Group
		Listed Company's Excellent
		Board" Award
2	Dazhong Public Utilities	"Sullivan 2020 China New	Frost & Sullivan
		Infrastructure Enterprise List"
		Smart City Category included
3	Dazhong Public Utilities	Ranked 54th in the "2020 Top-100	Shanghai Enterprises
		Shanghai Private Enterprises"	Confederation
4	Dazhong Public Utilities	2019	Financial Market Classic	Shanghai Association of
		Cases		International Services Trade
5	Dazhong Public Utilities	2020	Most Socially-responsible	Gelonghui
		Award
6	Dazhong Financial Leasing	2019	Shanghai Financial	Shanghai People's Government
		Innovation Award
7	SEIS	Third-class Prize of Science	China Intelligent Transportation
		& Technology Award	Systems Association
8	SEIS	First-class Prize of Science &	Shanghai Highway &
		Technology Award	Transportation Society
9	SEIS	2018	Shanghai Transportation	Shanghai Engineering
		Construction Quality Project	Construction Quality
				Management Association
10	SEIS	2019	Shanghai Transportation	Shanghai Engineering
		Construction Quality Project	Construction Quality
				Management Association
11	SEIS	2018-2019 Shanghai Municipal	Shanghai Municipal Highway
		Engineering Golden Award	Industry Association

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6.4 Opinion Feedback

Thank you for reading the Environmental, Social and Governance Report of Dazhong Public Utilities for 2020. In order to better meet your needs, provide you with more valuable information, promote the Company's ESG performance, and improve the ability to fulfill social responsibilities, we sincerely hope that you can put forward valuable opinions on our report and feed back to us through the following ways:

Tel:Fax:

Email:

Mail address:

Post code:

1. Your overall comment of the report:
   □Very good  □ good  □ not impressed
2. Your comment on Dazhong Public Utilities' resources consumption:
   □Very good □ good □ not impressed
3. Your comment on Dazhong Public Utilities' environmental protection:
   □Very good □ good □ not impressed
4. Your comment on Dazhong Public Utilities' employee development supporting:
   □Very good □ good □ not impressed
5. Your comment on Dazhong Public Utilities' corporate governance improvement:
   □Very good □ good □ not impressed
6. Your opinions and suggestions to Dazhong Public Utilities' ESG report and ESG-related work?

Sincere appreciation for your support and help to the Company.

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