Green Development | CITIC Limited Annual Report 2022

ESG Report
Green Development

Green Development:
Our Commitment to Building a Beautiful China

Special Report:

“Dual Carbon” Strategy and Climate Change Risks Management

Responding to climate change risks and implementing the “Dual Carbon” strategy is a shared responsibility of society, including businesses. At CITIC, we have taken proactive measures to align with the green and low-carbon transformation trend, and we have been exploring the CITIC approach of providing comprehensive enterprise services for green development. Thanks to our efforts, we were recognized as a “Leading Enterprise in Industrial Carbon Peaking” and ranked first on the list in 2022.

2021	2022	Short-term goals	Long-term goals
√ Proposed the “Two Increases and One Reduction”¹low-carbon development strategy √ Our “Dual Carbon” goals were set in several phases including 2023, 2030 and 2060	√ Released the White Paper for Carbon Peaking and Carbon Neutrality Actions and announce CITIC’s roadmap for carbon neutrality √ Began the compilation of the carbon profit and loss statement for the previous year √ Initiated four major scientific research projects on Carbon Peaking and Carbon Neutrality	√ Complete the compilation of carbon profit and loss statement √ Establish a “Dual Carbon” assessment framework √ Achieve an 18% reduction in carbon emissions per unit of output by 2025, compared to 2020 levels	√ Achieve significant results in comprehensive green and low-carbon transformation by 2030 √ Become a pioneer in green and low-carbon development by fully integrating into a green, low-carbon, and circular development industrial system, as well as a clean, efficient, and safe energy system by 2060

2021

2022

Short-term goals

Long-term goals

√ Proposed the
“Two Increases and One Reduction”¹low-carbon development strategy

√ Our “Dual Carbon” goals were set in several phases including 2023, 2030 and 2060

√ Released the White Paper for Carbon Peaking and Carbon Neutrality Actions and announce CITIC’s roadmap for carbon neutrality

√ Began the compilation of the carbon profit and loss statement for the previous year

√ Initiated four major scientific research projects on Carbon Peaking and Carbon Neutrality

√ Complete the compilation of

carbon profit and loss statement

√ Establish a “Dual Carbon” assessment framework

√ Achieve an 18% reduction in

carbon emissions per unit of output by 2025, compared to 2020 levels

√ Achieve significant results in

comprehensive green and low-carbon transformation by 2030

√ Become a pioneer in green and low-carbon development by fully integrating into a green, low-carbon, and circular development industrial system, as well as a clean, efficient, and safe energy system by 2060

¹ The first “Increase” involves providing financing solutions for low-carbon industry transformation through green finance; the second “Increase” involves enhancing corporate responsibility and amplifying the low-carbon effect of the industrial chain and ecosystem; the “Reduction” involves promoting low-carbon transformation of high-carbon businesses and investments with high environmental impact, while prioritising low-carbon emissions and low environmental impact in new business layouts.

“Carbon Neutrality” Roadmap

In 2022, we released the White Paper on Carbon Peaking and Carbon Neutrality Actions, which disclosed our revised roadmap for achieving carbon neutrality.

The Roadmap Towards “Carbon Neutrality”
Stage 1: Carbon Reduction	Stage 2: Carbon Neutrality
We will vigorously promote energy conservation and carbon reduction in key areas such as power generation, steel production, building operations and data centers. We will identify potential opportunities for efficiency improvement, structural optimisation, and technologybased emissions reduction to effectively reduce carbon emissions.	We will introduce offsetting plans for the remaining carbon emissions through the purchase of verified emissions reductions, green electricity certificates, and investing in green projects outside the company. By doing this, we can offset the carbon emissions that cannot be further reduced through carbon neutrality, ultimately achieving net-zero carbon emissions.

Compiling the Carbon Profit and Loss Statement

We have taken a leading position in addressing the issue of “Carbon Asset Operation and Management” by proposing and compiling an industry-leading carbon profit and loss statement. This statement reflects the dynamic performance of our company’s carbon emissions and reductions over a certain period, providing a clear and intuitive view of accounting subjects such as carbon emissions, carbon reductions, and adjusted net carbon emissions. By doing so, we can effectively trace, monitor, and evaluate the implementation of our Dual Carbon strategy.

We have set up a preliminary carbon asset management system that centers on the carbon profit and loss statement and the practical actions we take to manage and operate our carbon assets. Starting from October 2022, we have been compiling the carbon profit and loss statement for the previous year. This statement will help us summarize, collect, organize, and evaluate our carbon assets based on the cost and revenue information, providing a reliable basis for effectively managing and operating our carbon assets.

Dealing with Climate Change Risks

Through our extensive “Dual Carbon” management efforts, we have fully recognized the risks and opportunities that climate change poses to our business operations. As a result, we have made the implementation of the TCFD disclosure framework as key priority for our work in 2023. In doing so, we will lead all five major business sectors to identify and evaluate climate change risks, align our operations with sustainable development principles, improve our adaptability to climate change, and address the imminent threat it poses.

Implemented measure:	Planned measure:
√ “Dual carbon” management √ Provide detailed opinions on climate risks for investment projects in risk analysis reports √ CITIC Bank committed to support TCFD	√ Hire specialized organisations to assist with the implementation of the TCFD disclosure framework √ Incorporate climate change risk management into the comprehensive risk management system and take these factors into consideration during risk preference development √ Continue to improve the monitoring and management mechanisms related to climate change risks

Implemented measure:

Planned measure:

√ “Dual carbon” management

√ Provide detailed opinions on climate risks for investment projects in risk analysis reports

√ CITIC Bank committed to support TCFD

√ Hire specialized organisations to assist with the implementation of the TCFD disclosure framework

√ Incorporate climate change risk management into the comprehensive risk management system and take these factors into consideration during risk preference development

√ Continue to improve the monitoring and management mechanisms related to climate change risks

CITIC Bank has developed a Green Bank Construction Plan , recognizing the importance of climate change risk prevention and response in green banking. The plan analyzes the transmission mechanism between climate risk and six types of banking risks, including credit risk, market risk, and liquidity risk. The bank has conducted several stress tests, including solvency, real estate, and internal capital assessment stress tests. CITIC Bank is dedicated to enhancing its environmental and climate change risk management capabilities continuously.

CITIC Securities has incorporated climate change into its risk management system, actively identifying, assessing, and managing the physical risks, transition risks, and opportunities of climate change on its operations and business, and has developed specific response measures.

China Securities has incorporated climate change risk management into its overall risk management framework. The company assesses the potential risks and opportunities of climate change in the short, medium, and long term, identifies the sources and magnitude of climate-related risks, analyzes the risks and opportunities that arise from climate change, and develops appropriate response measures on a regular basis.

CITIC Telecom International evaluates climate-change risks on a regular basis to mitigate the impact of climate change on its operations. For instance, in the event of a potential power failure caused by a typhoon, the company’s backup power generators will activate automatically to support core business operations and uphold the promise of providing uninterrupted telecommunications services to customers 24/7.

Environmental Performance

Unless otherwise specified, the statistical scope of environmental performance results in this section covers the main operating locations of the headquarters and subsidiaries in the Chinese mainland, Hong Kong, Macau, and Taiwan. Additional operating locations will be included in the statistical scope in the future.²

Headquarter	Indicators	2022
	WASTE GAS
	Nitrogen oxide (NO_x) emissions (tonnes)	0.01
	Sulphur dioxide (SO₂) emissions (tonnes)	0.0007
	GREENHOUSE GASES
	Total greenhouse gas emissions (Scope 1 and Scope 2) (tonnes)	2,118.08
	Per capita greenhouse gas emissions from headquarters ((tonnes/person)	4.39
	Direct greenhouse gas emissions (Scope 1) (tonnes)	100.86
	Gasoline	100.86
	Indirect greenhouse gas emissions (Scope 2) (tonnes)	2,017.22
	Purchased electricity	2,017.22
	WASTE
	Total amount of hazardous waste (tonnes)	0.24
	Per capita hazardous waste emissions from headquarters (tonnes/person)	0.0005
	Total amount of non-hazardous waste (tonnes)	243.78
	Per capita non-hazardous waste emissions from headquarters (tonnes/person)	0.51
	ENERGY CONSUMPTION
	Total energy consumption (MWh)	2,693.16
	Per capita energy consumption from headquarters (MWh/person)	5.59
	Direct energy consumption (MWh)	412.01
	Gasoline	412.01
	Indirect energy consumption (MWh)	2,281.15
	Purchased electricity	2,281.15
	Electricity consumption per capita at headquarters (MWh/person)	4.73
	Gasoline consumption per capita at headquarters (Litre/person)	98.42
	RESOURCE CONSUMPTION
	Total water consumption (m³)	18,299.00
	Water consumption per capita at headquarters (m³/person)	37.96
	Total paper consumption at headquarters (tonnes)	16.70

² The statistical scope used for greenhouse gas accounting includes carbon dioxide, methane, and nitrous oxide, primarily from purchased electricity, purchased steam and fuel. We presented and conducted greenhouse gas accounting in terms of carbon dioxide equivalent using the 2011 and 2012 Baseline Emission Factors for Regional Power Grids in China published by the National Development and Reform Commission of the People’s Republic of China. We also used the latest emission coefficient data released by the Hong Kong Electric Company, CLP Power Hong Kong, and Companhia de Electricidade de Macau, as well as the 2006 IPCC Guidelines for National Greenhouse Gas Inventories (2019 Refinement) released by the Intergovernmental Panel on Climate Change (IPCC). The statistical scope of greenhouse gas emissions does not include purchased electricity from operating locations in Tibet because there is no baseline emission factor for the Tibet power grid, and the impact of purchased electricity data from operating locations in Tibet is small and of low importance.

Comprehensive Financial Services³	Indicators	2022
	WASTE GAS
	Nitrogen oxide (NO_x) emissions (tonnes)	0.49
	Sulphur dioxide (SO₂) emissions (tonnes)	0.02
	GREENHOUSE GASES
	Total greenhouse gas emissions (Scope 1 and Scope 2) (tonnes)	236,624.99
	Greenhouse gas emissions per RMB100 million of revenue (tonnes/RMB100 million)	85.41
	Direct greenhouse gas emissions (Scope 1) (tonnes)	6,925.20
	Gasoline	3,041.25
	Diesel	77.57
	Coal gas	29.37
	Liquefied petroleum gas	94.75
	Natural gas	3,682.25
	Indirect greenhouse gas emissions (Scope 2) (tonnes)	229,699.79
	Purchased electricity	229,699.79
	WASTE
	Hazardous waste total (tonnes)	347.55
	Hazardous waste per RMB100 million of revenue (tonnes/RMB100)	0.13
	Non-hazardous waste total (tonnes)	18,648,633.01
	Non-hazardous waste per RMB100 million of revenue (tonnes/RMB100 million)	6,731.53
	ENERGY CONSUMPTION
	Total energy consumption (MWh)	348,895.23
	Energy consumption per RMB100 million of revenue (MWh/RMB100 million)	125.94
	Direct energy consumption (MWh)	32,195.94
	Gasoline	12,423.57
	Diesel	295.02
	Coal gas	218.65
	Liquefied petroleum gas	427.13
	Natural gas	18,831.57
	Indirect energy consumption (MWh)	316,699.29
	Purchased electricity	316,699.29
	RESOURCE CONSUMPTION
	Total water consumption (m³)	2,365,837.53
	Water consumption per RMB100 million of revenue (m³/RMB100 million)	853.99
	Paper consumption at headquarters (tonnes)	1,426.71

³ In addition to related subsidiaries, the statistical scope of this section also includes China Securities Co., Ltd. and CITIC-Prudential Life Insurance Co., Ltd.

Advanced Intelligent Manufacturing	Indicators	2022
	AIR EMISSIONS
	Nitrogen oxide (NOx) emissions (tonnes)	113.86
	Sulphur dioxide (SO2) emissions (tonnes)	10.21
	Particulate matter emissions (tonnes)	55.82
	Chemical oxygen demand (COD) emissions (tonnes)	77.73
	Ammonia nitrogen emissions (tonnes)	5.54
	Total phosphorus emissions (tonnes)	0.79
	Wastewater discharge (m³)	621,067.86
	GHG EMISSIONS
	Total GHG emissions (Scope 1 and 2) (tonnes)	728,458.49
	GHG emissions per 100 million RMB of income (tonnes /100 million RMB)	288.99
	Direct GHG emissions (Scope 1) (tonnes)	227,090.91
	Gasoline	382.62
	Diesel	1,734.73
	Liquefied petroleum gas	276.66
	Natural gas	224,696.90
	Indirect GHG emissions (Scope 2) (tonnes)	501,367.58
	Purchased electricity	478,599.45
	Purchased steam	22,768.13
	WASTE
	Total hazardous waste (tonnes)	17,451.74
	Total hazardous waste per 100 million RMB of income (tonnes /100 million RMB)	6.92
	Total non-hazardous waste (tonnes)	4,406.44
	Total non-hazardous waste per 100 million RMB of income (tonnes/100 million RMB)	1.75
	ENERGY USE
	Total energy consumption (MWh)	1,882,453.50
	Energy consumption per 100 million RMB of income (MWh/100 million RMB)	746.81
	Direct energy consumption (MWh)	1,158,540.12
	Gasoline	1,563.01
	Diesel	6,597.65
	Liquefied petroleum gas	1,247.26</p
	Natural gas	1,149,132.20
	Indirect GHG emissions (Scope 2) (tonnes)	723,913.39
	Purchased electricity	666,418.11
	Purchased steam	57,495.28
	USE OF RESOURCES
	Total water consumption (m³)	2,713,455.45
	Water consumption per 100 million RMB of income (m³/100 million RMB)	1,076.48
	Total paper consumption (tonnes)	43.28
	PACKAGING MATERIAL
	Total packaging material used for finished goods (tonnes)	25,265.34
	Amount of packaging material used per 100 million RMB of income (tonnes/100 million RMB)	10.02

Advanced Materials⁴	Indicators	2022
	WASTE GAS
	Nitrogen oxide (NO_x) emissions (tonnes)	7,285.68
	Sulphur dioxide (SO₂) emissions (tonnes)	2,942.99
	Particulate matter emissions (tonnes)	5,244.13
	WASTEWATER
	Chemical oxygen demand (COD) emissions (tonnes)	517.09
	Ammonia nitrogen emissions (tonnes)	44.28
	Total phosphorus emissions (tonnes)	1.24
	Wastewater discharge (m³)	10,101,356.12
	GREENHOUSE GASES
	Total greenhouse gas emissions (Scope 1 and Scope 2) (tonnes)	48,612,061.58
	Greenhouse gas emissions per RMB100 million of revenue (tonnes/RMB100 million)	19,285.34
	Direct greenhouse gas emissions (Scope 1) (tonnes)	46,749,289.33
	Gasoline	1,215.69
	Diesel	9,307.27
	Liquefied petroleum gas	1,417.20
	Natural gas	385,661.47
	Coke	1,969,568.30
	Coal	42,511,776.40
	Intermediate process emissions	1,871,760.20
	Indirect greenhouse gas emissions (Scope 2) (tonnes)	3,671,676.09
	Purchased electricity	3,538,741.23
	Purchased steam	132,934.86
	Implicit emissions of carbon sequestration product (deductible) (tonnes)	-1,808,903.84
	WASTE
	Hazardous waste total (tonnes)	11,188.14
	Hazardous waste per RMB100 million of revenue (tonnes/RMB100 million)	4.44
	Non-hazardous waste total (tonnes)	10,309,521.73
	Non-hazardous waste per RMB100 million of revenue (tonnes/RMB100 million)	4,089.99
	ENERGY CONSUMPTION
	Total energy consumption (MWh)	140,058,396.33
	Energy consumption per RMB100 million of revenue (MWh/RMB100 million)	55,563.87
	Direct energy consumption (MWh)	134,343,684.92
	Gasoline	4,966.10
	Diesel	35,398.05
	Liquefied petroleum gas	6,389.06
	Natural gas	1,972,328.14
	Coke	5,438,663.01
	Coal	126,892,329.62
	Indirect energy consumption (MWh)	5,714,711.41
	Purchased electricity	5,321,371.51
	Renewable energy electricity	57,645.80
	Purchased steam	335,694.09
	RESOURCE CONSUMPTION
	Total water consumption (m³)	60,418,399.88
	Water consumption per RMB100 million of revenue (m³/RMB100 million)	23,969.15
	Total paper consumption (tonnes)	106.33
	PACKAGING MATERIALS
	Total packaging materials used for finished products (tonnes)	10,021.60
	Packaging materials used per RMB100 million of revenue (tonnes/RMB100 million)	3.98

⁴ In this section, CITIC Pacific Special Steel's GHG emissions and energy consumption data are calculated based on the relevant emission factors and conversion factors provided in the Methodology for Accounting and Reporting of Greenhouse Gas Emissions of Chinese Steel Producers (for Trial Implementation) issued by the National Development and Reform Commission of the People’s Republic of China.

New Consumption	Indicators	2022
	EMISSIONS
	Nitrogen oxide (NO_x) emissions (tonnes)	3.75
	Sulphur dioxide (SO₂) emissions (tonnes)	0.02
	GREENHOUSE GASES
	Total greenhouse gas emissions (Scope 1 and Scope 2) (tonnes)	128,318.24
	Greenhouse gas emissions per RMB100 million of revenue (tonnes/RMB)	232.83
	Direct greenhouse gas emissions (Scope 1) (tonnes)	2,734.44
	Gasoline	1,889.93
	Diesel	771.43
	Coal gas	2.19
	Liquefied petroleum gas
	Natural gas	70.89
	Indirect greenhouse gas emissions (Scope 2) (tonnes)	125,583.80
	Purchased electricity	125,583.80
	WASTE
	Hazardous waste generation (tonnes)	489.85
	Hazardous waste generation per RMB100 million of revenue (tonnes/RMB)	0.89
	Non-hazardous waste generation (tonnes)	10,253.18
	Non-hazardous waste generation per RMB100 million of revenue (tonnes/RMB)	18.60
	ENERGY CONSUMPTION
	Total energy consumption (MWh)	205,555.06
	Energy consumption per RMB100 million of revenue (MWh/RMB)	372.98
	Direct energy consumption (MWh)	11,033.18
	Gasoline	7,720.38
	Diesel	2,933.94
	Coal gas
	Liquefied petroleum gas	16.32
	Natural gas	362.54
	Indirect energy consumption (MWh)	194,521.88
	Purchased electricity	194,521.88
	RESOURCE CONSUMPTION
	Total water consumption (m³)	1,514,965.58
	Water consumption per RMB100 million of revenue (m³/RMB)	2,748.89
	Total paper consumption (tonnes)	8,263.52
	PACKAGING MATERIALS
	Total packaging materials used for finished products (tonnes)	4,532.08
	Packaging materials used per RMB100 million of revenue (tonnes/RMB100)	8.22

New-type Urbanisation	Indicators	2022
	WASTE GAS
	Nitrogen oxide (NO_x) emissions (tonnes)	132.27
	Sulphur dioxide (SO₂) emissions (tonnes)	67.64
	Particulate matter emissions (tonnes)	15.15
	WASTE WATER
	Chemical oxygen demand (COD) emissions (tonnes)	11,733.45
	Ammonia nitrogen emissions (tonnes)	497.77
	Total phosphorus emissions (tonnes)	130.37
	Wastewater discharge (m³)	541,019,544.32
	GREENHOUSE GAS
	Total greenhouse gas emissions (Scope 1 and Scope 2) (tonnes)	426,210.30
	Greenhouse gas emissions per RMB100 million of revenue (tonnes/RMB100)	836.20
	Direct greenhouse gas emissions (Scope 1) (tonnes)	24,418.78
	Gasoline	2,526.18
	Diesel	1,167.06
	Coal gas	7.00
	Liquefied petroleum gas	45.07
	Natural gas	20,673.46
	Indirect greenhouse gas emissions (Scope 2) (tonnes)	401,791.52
	Purchased electricity	401,791.52
	WASTE
	Hazardous waste total (tonnes)	56,329.36
	Hazardous Waste per RMB100 million of revenue (tonnes/RMB100 million)	110.51
	Non-Hazardous Waste Total (tonnes)	141,499.13
	Non-Hazardous Waste per RMB100 million of revenue (tonnes/RMB100 million)	277.61
	ENERGY CONSUMPTION
	Total energy consumption (MWh)	695,442.86
	Energy consumption per RMB100 million of revenue (MWh/RMB100 million)	1,364.42
	Direct energy consumption (MWh)	120,740.48
	Gasoline	10,319.47
	Diesel	4,438.66
	Coal gas	52.09
	Liquefied petroleum gas	203.20
	Natural gas	105,727.06
	Indirect energy consumption (MWh)	574,702.38
	Purchased Electricity	571,540.29
	Renewable energy electricity	3,162.09
	RESOURCE CONSUMPTION
	Total water consumption (m³)	7,966,965.50
	Water consumption per RMB100 million of revenue (m³/RMB100 million)	15,630.70
	Total paper consumption (tonnes)	119.12
	PACKAGING MATERIALS
	Total packaging materials used in manufacturing (tonnes)	75.33
	Packaging materials used per RMB100 million of revenue (tonnes/RMB100 million)	0.15

Green Finance

As part of our commitment to the new development philosophy in the financial sector, we are accelerating the innovation of investment and financing products in green finance and carefully assessing the industrial value of these products under the guidance of our dual-carbon strategy. In addition, we are planning to create innovative carbon finance derivative tools that support our goals in this area. Through responsible investment and a focus on green finance, we aim to achieve positive outcomes for the economy, society and the environment.

Implemented measures	Key achievements
Green finance products	CITIC Bank has issued green loans amounting to RMB334.082 billion. It has also introduced 9 ESG/green-themed products, with 12 currently in existence, totalling RMB2.996 billion. The balance of its green leasing products currently stands at RMB27.474 billion. Additionally, 11 carbon-neutrality structured deposit products have been issued, amounting to RMB1.13 billion.
	CITIC Securities Asset Management successfully launched its first ESG/sustainable investment theme product. A total of 18 green-themed products were sold with a total amount of RMB3.1 billion. The investment scale of ESG bond and investment fund assets totaled RMB43.4 billion, with a green investment scale that reached an impressive RMB47.39 billion. The company underwrote a total of 129 green bonds (including asset-backed securities), with an underwriting size of RMB65.1 billion. The underwriting size of overseas ESG bonds reached USD1.14 billion.
	CITIC Trust has created several green trust schemes such as water and equipment replacement projects in Zhangqiu District. Other projects include a charging service for electric public buses in Foshan and power supply assistance to the southern Jiangsu region, supporting local governments in achieving eco-friendly, low-carbon development.
Green finance research	CITIC Securities has developed an ESG rating and research system and published 43 ESG-related research reports that offer valuable insights for ESG investors.
Green finance research	China Securities has issued over 20 research reports on ESG topics and arranged analyst roadshows and internal researcher presentations to provide comprehensive ESG industry training for investment managers. Over 30 ESG-related training sessions have been organised by China Securities for more than 1,000 participants, including investment managers and analysts.
Supporting carbon market development	CITIC CLSA has become one of the first companies to trade on Core Climate, a new international carbon trading market platform in Hong Kong.

Clean Technology and New Energy Business Operations

As part of our “14th Five-Year Plan” development strategy, we put forward the fundamental principle of “full-process green and low-carbon development”. In the meanwhile, the company has established the “CITIC Dual Carbon Technology Innovation Initiative” and other technology innovation projects to address major technical challenges such as energy-efficient development, conservation and utilisation, environmental protection, water treatment, and resource recycling. Moreover, the company has provided research funding to its subsidiaries, enabling them to tackle difficult scientific and technological issues. In 2022, the company launched groundbreaking projects under the “CITIC Dual Carbon Technology Innovation Initiative”. These include “Research and Application of Whole Life Cycle Manufacturing Technology of Low-carbon Emission Aluminum Alloy Components for Automobile” at CITIC Dicastal, “Technology Research and Engineering Application for High-Efficiency Recovery of Sintering Flue Gas Residual Heat Using Vertical Cooling” at CITIC Heavy Industries, “Green Manufacturing Process of Chromium Compounds” at CITIC Metal, and “Key Technical System Research for Ultra-low Energy Consumption Buildings in Regions with Hot Summers and Cold Winters under the Framework of ‘Carbon Peaking and Carbon Neutrality’” at CITIC Engineering. Apart from these, CITIC Environment has launched three other green, low-carbon, and environmentally friendly technological innovation projects, including the development and application of an advanced membrane technology integrated system for sustainable and low-carbon utilisation of water resources. The total investment amount for these projects reached RMB373.21 million, with RMB171.48 million provided by the headquarters. As of the end of Q1 2023, RMB67.42 million has been allocated to research funding, with an additional RMB104.06 million to be provided in the future.

CITIC Environment

As the flagship platform of CITIC Limited in the field of environmental protection, CITIC Environment is committed to preventing and controlling pollution while safeguarding the environment. The company’s primary focus lies in water treatment, solid waste treatment, energy conservation, and emission reduction. Through unwavering efforts, CITIC Environment seeks to optimise water treatment processes, ensure the safe disposal of solid waste, and enhance energy management through intelligent solutions. (For more information, please refer to relevant reports available at https://www.group.citic/en/2022/News_0628/73.html).

	Work completed in 2022
Wastewater treatment technology	√ Shidao Wastewater Treatment Plant, operated by the project company in Rongcheng, has implemented technical upgrades to its carbon source pharmaceutical casting control system. With the full integration of an intelligent casting system, there has been a substantial decrease in the usage of carbon source pharmaceuticals, resulting in annual savings of almost RMB10 million in pharmaceutical costs. √ Xinji Wastewater Treatment Plant adds processed return sludge as a carbon source in the initial stage of the biochemical process. This approach not only reduces the amount of residual sludge emissions but also minimizes the amount of carbon source required. √ Central & Southern China Municipal Engineering Design and Research Institute has successfully completed the mid-term assessment for the Ministry of Housing and Urban-Rural Development’s project “Research on the Whole-process Environmentallyfriendly Green Water Purification Technology of Waterworks”. Moreover, they have also launched new research projects including the “Control of Internal Source Pollution and Lake Sediment Utilisation Technology in the Yangtze River Basin”. In addition, they have undertaken over 80 scientific research projects related to wastewater and sludge treatment technologies, including the “Autotrophic Denitrification Technology for Urban Wastewater”. They have also compiled more than 30 standard specifications related to wastewater and sludge treatment, including the “Technical Regulations for the Treatment and Disposal of Sewage Sludge in Urban Drainage Systems”.
Hazardous waste/solid waste disposal technology	√ Central & Southern China Municipal Engineering Design and Research Institute has taken the lead in undertaking or participating in several sub-projects of the national key research and development program “Collaborative Disposal and Demonstration of Multi-Source Organic Solid Waste in Large and Medium-sized Urban Parks in the Yangtze River Economic Belt”. The institute has developed two-phase anaerobic digestion equipment for collaborative treatment with high-yield biogas, achieving a 10% increase in gas production compared to traditional anaerobic fermentation systems and a resource conversion rate of over 80%. √ CITIC Qing Shui Ru Jiang Co., Ltd. has launched a research project titled Research on Sludge Treatment and Disposal Technology of Urban Sewage Treatment Plant to initiate the research and development of sludge treatment and disposal technologies. The company plans to apply for at least one utility model patent in 2023.
Clean energy technology	√ CITIC General Institute of Architectural Design and Research has completed the geothermal heat pump engineering design for the Wuhan Bio-agricultural Industry Base project, as well as the feasibility report for the energy station in the Silicon Valley Town area. The institute has also conducted the scheme demonstration work for the smart energy station project in Huangshi Science and Technology City. √ CITIC Qing Shui Ru Jiang Co., Ltd. implemented a “photovoltaic + wastewater treatment plant” model at the Jiangxia Wastewater Treatment Plant by installing photovoltaic panels on various sections, including the roof, sedimentation tank, and biochemical pool. The generated electricity is used to power the plant’s operations. With an annual capacity to produce 1500 MWh of electricity, the photovoltaic power generation system has produced a total of 4223.2 MWh of renewable electricity since the plant began operation in 2018.

Work completed in 2022

Wastewater treatment technology

√ Shidao Wastewater Treatment Plant, operated by the project company in Rongcheng, has implemented technical upgrades to its carbon source pharmaceutical casting control system. With the full integration of an intelligent casting system, there has been a substantial decrease in the usage of carbon source pharmaceuticals, resulting in annual savings of almost RMB10 million in pharmaceutical costs.

√ Xinji Wastewater Treatment Plant adds processed return sludge as a carbon source in the initial stage of the biochemical process. This approach not only reduces the amount of residual sludge emissions but also minimizes the amount of carbon source required.

√ Central & Southern China Municipal Engineering Design and Research Institute has successfully completed the mid-term assessment for the Ministry of Housing and Urban-Rural Development’s project “Research on the Whole-process Environmentallyfriendly Green Water Purification Technology of Waterworks”. Moreover, they have also launched new research projects including the “Control of Internal Source Pollution and Lake Sediment Utilisation Technology in the Yangtze River Basin”. In addition, they have undertaken over 80 scientific research projects related to wastewater and sludge treatment technologies, including the “Autotrophic Denitrification Technology for Urban Wastewater”. They have also compiled more than 30 standard specifications related to wastewater and sludge treatment, including the “Technical Regulations for the Treatment and Disposal of Sewage Sludge in Urban Drainage Systems”.

Hazardous waste/solid waste disposal technology

√ Central & Southern China Municipal Engineering Design and Research Institute has taken the lead in undertaking or participating in several sub-projects of the national key research and development program “Collaborative Disposal and Demonstration of Multi-Source Organic Solid Waste in Large and Medium-sized Urban Parks in the Yangtze River Economic Belt”. The institute has developed two-phase anaerobic digestion equipment for collaborative treatment with high-yield biogas, achieving a 10% increase in gas production compared to traditional anaerobic fermentation systems and a resource conversion rate of over 80%.

√ CITIC Qing Shui Ru Jiang Co., Ltd. has launched a research project titled Research on Sludge Treatment and Disposal Technology of Urban Sewage Treatment Plant to initiate the research and development of sludge treatment and disposal technologies. The company plans to apply for at least one utility model patent in 2023.

Clean energy technology

√ CITIC General Institute of Architectural Design and Research has completed the geothermal heat pump engineering design for the Wuhan Bio-agricultural Industry Base project, as well as the feasibility report for the energy station in the Silicon Valley Town area. The institute has also conducted the scheme demonstration work for the smart energy station project in Huangshi Science and Technology City.

√ CITIC Qing Shui Ru Jiang Co., Ltd. implemented a “photovoltaic + wastewater treatment plant” model at the Jiangxia Wastewater Treatment Plant by installing photovoltaic panels on various sections, including the roof, sedimentation tank, and biochemical pool. The generated electricity is used to power the plant’s operations. With an annual capacity to produce 1500 MWh of electricity, the photovoltaic power generation system has produced a total of 4223.2 MWh of renewable electricity since the plant began operation in 2018.

CITIC Environment places a high value on technological innovation and is committed to ensuring and increasing investment in technology research and development. By continuing to upgrade its technological capabilities, the company aims to drive business growth and create new opportunities for profit.

R&D investment	Project revenue
√ In 2022, CITIC Environment Technology invested RMB55.47 million in research and development, marking an increase of 23% from the previous year. The R&D spending accounted for 1.2% of the company’s sales revenue, an increase of 0.4% compared to the previous year. Approximately RMB29.37 million was directed towards initiatives such as resource recovery, intensive resource utilisation, and reducing energy consumption. √ In 2022, Central & Southern China Municipal Engineering Design and Research Institute invested RMB285.1452 million in research and development, marking an increase of 47.74% from the previous year. The R&D spending accounted for 7.3% of its sales revenue, an increase of 4.13% compared to the previous year. Approximately RMB199.60 million was directed towards municipal wastewater treatment, industrial wastewater treatment, sludge treatment, and solid waste treatment. √ In 2022, CITIC Qing Shui Ru Jiang Co., Ltd. invested RMB5.49 million to research and development for smart water service platform construction and other related areas, accounting for 3.6% of its sales revenue. The company plans to increase its R&D investment in 2023 to RMB8 million.	√ In 2022, Central & Southern China Municipal Engineering Design and Research Institute undertook two projects: preparing feasibility reports for a rooftop photovoltaic power generation project in Maoxian County, Sichuan Province, and an energy consumption balance integration project in the photovoltaic energy zone of Jiulongpo District, Chongqing. The total contract value for these projects was RMB770,000. In January 2023, the institute was awarded a new contract worth RMB1.976 million to provide survey and design services for the rooftop photovoltaic power generation project in Maoxian County. √ CITIC General Institute of Architectural Design and Research has signed contracts for 11 projects related to green building, low-carbon technology, and energy, including the Consulting and Testing Project for Green Building Construction of the Cultural and Sports Activity Center for China-French Wuhan Ecological Demonstration City. The collective value of these contracts is RMB4.72 million, representing a 30.41% increase from RMB3.62 million in 2021. As of the first quarter of 2023, the institute has already signed new contracts totaling RMB2.0926 million, and it is expected that the total new contract value for the year will exceed RMB5 million.

R&D investment

Project revenue

√ In 2022, CITIC Environment Technology invested RMB55.47 million in research and development, marking an increase of 23% from the previous year. The R&D spending accounted for 1.2% of the company’s sales revenue, an increase of 0.4% compared to the previous year. Approximately RMB29.37 million was directed towards initiatives such as resource recovery, intensive resource utilisation, and reducing energy consumption.

√ In 2022, Central & Southern China Municipal Engineering Design and Research Institute invested RMB285.1452 million in research and development, marking an increase of 47.74% from the previous year. The R&D spending accounted for 7.3% of its sales revenue, an increase of 4.13% compared to the previous year. Approximately RMB199.60 million was directed towards municipal wastewater treatment, industrial wastewater treatment, sludge treatment, and solid waste treatment.

√ In 2022, CITIC Qing Shui Ru Jiang Co., Ltd. invested RMB5.49 million to research and development for smart water service platform construction and other related areas, accounting for 3.6% of its sales revenue. The company plans to increase its R&D investment in 2023 to RMB8 million.

√ In 2022, Central & Southern China Municipal Engineering Design and Research Institute undertook two projects: preparing feasibility reports for a rooftop photovoltaic power generation project in Maoxian County, Sichuan Province, and an energy consumption balance integration project in the photovoltaic energy zone of Jiulongpo District, Chongqing. The total contract value for these projects was RMB770,000. In January 2023, the institute was awarded a new contract worth RMB1.976 million to provide survey and design services for the rooftop photovoltaic power generation project in Maoxian County.

√ CITIC General Institute of Architectural Design and Research has signed contracts for 11 projects related to green building, low-carbon technology, and energy, including the Consulting and Testing Project for Green Building Construction of the Cultural and Sports Activity Center for China-French Wuhan Ecological Demonstration City. The collective value of these contracts is RMB4.72 million, representing a 30.41% increase from RMB3.62 million in 2021. As of the first quarter of 2023, the institute has already signed new contracts totaling RMB2.0926 million, and it is expected that the total new contract value for the year will exceed RMB5 million.

In 2022, CITIC Environment held three strategic seminars, where it set its sights on the green industry environmental protection and put great efforts into developing businesses such as clean energy coupling utilisation and photovoltaic power generation. In its 2023 work plan, the company proposed to focus on cutting-edge environmental technologies, including high-efficiency microbiological treatment, high-performance membrane treatment, smart management systems for energy-saving and environmental protection in industrial parks, sewage resource recovery, and special solid waste treatment. CITIC Environment will prioritise the promotion of these technologies in the following areas:

	Work priorities for 2023
Deepening industry-university research cooperation and stepping up studies on pollution prevention	√ Construct a sludge treatment demonstration project at the sewage treatment plant by leveraging Peking University’s high-efficient and low-energy consumption carbon dioxide drying technology √ Optimise the pilot process and actively explore comprehensive utilisation of fly ash by cooperating with Zhejiang University in the plasma hazardous waste disposal technology research and development project
Expanding new energy business	√ Promote the implementation of photovoltaic renewable energy generation pilots √ CITIC Qing Shui Ru Jiang Co., Ltd. plans to increase its investment in distributed photovoltaic power generation in the Jiangxia Wastewater Treatment Plant (Phase I). It aims to add 1.2892 MWh on the basis of the existing 1.4984 MWh. The expanded photovoltaic power generation capacity will reach 2.7876 MWh.
Strengthening water management and operation transformation with technology	√ Increase the promotion of smart water management and build more benchmark water plants √ Central & Southern China Municipal Engineering Design and Research Institute will continue to carry out research in the field of water and environmental protection technologies based on engineering projects and research programs. This includes high-quality drinking water technology (double membrane treatment technology for water supply), high-standard sewage treatment and reuse technology (ultra-deep denitrification treatment process for sewage recycling), new technologies for debris disposal on wasteland, and non- membrane deep treatment technology for leachate of garbage.

Work priorities for 2023

Deepening industry-university research cooperation and stepping up studies on pollution prevention

√ Construct a sludge treatment demonstration project at the sewage treatment plant by leveraging Peking University’s high-efficient and low-energy consumption carbon dioxide drying technology

√ Optimise the pilot process and actively explore comprehensive utilisation of fly ash by cooperating with Zhejiang University in the plasma hazardous waste disposal technology research and development project

Expanding new energy business

√ Promote the implementation of photovoltaic renewable energy generation pilots

√ CITIC Qing Shui Ru Jiang Co., Ltd. plans to increase its investment in distributed photovoltaic power generation in the Jiangxia Wastewater Treatment Plant (Phase I). It aims to add 1.2892 MWh on the basis of the existing 1.4984 MWh. The expanded photovoltaic power generation capacity will reach 2.7876 MWh.

Strengthening water management and operation transformation with technology

√ Increase the promotion of smart water management and build more benchmark water plants

√ Central & Southern China Municipal Engineering Design and Research Institute will continue to carry out research in the field of water and environmental protection technologies based on engineering projects and research programs. This includes high-quality drinking water technology (double membrane treatment technology for water supply), high-standard sewage treatment and reuse technology (ultra-deep denitrification treatment process for sewage recycling), new technologies for debris disposal on wasteland, and non- membrane deep treatment technology for leachate of garbage.

CITIC Pacific Energy

CITIC Pacific Energy has outlined its ambition to play a major role in the green and low-carbon energy transformation during the “14th Five-Year Plan”. The company plans to step up investment and development in new energy projects, focusing on cutting-edge technologies such as energy storage, source-network-load-storage integrated operation, and hydrogen energy. It aims to substantially increase the proportion of new energy capacity, with an average annual growth rate of 600 MW, and to reach an installed capacity of 3000 MW by 2025. This will include 1200 MW of wind power and 1800 MW of photovoltaics, along with 300 MW of energy storage capacity.

The company acquired the development rights for a 1000 MW wind power project in Xilin Gol League in December 2021, with plans for the full completion and grid connection by the end of 2023. The project’s expected static investment is RMB5.1 billion, with a total investment of RMB5.28 billion. As of the end of 2022, the project has received a cumulative investment of RMB2.587 billion, accounting for 49% of the total investment.

In 2022, CITIC Pacific Energy’s new energy business generated an operating income of RMB53.597 million. With the wind power project in Xilin Gol League and other projects being completed and connected to the grid, the new energy business is expected to generate an operating income of over RMB350 million in 2023. CITIC Pacific Energy plans to increase its investment in clean energy and accelerate green and low-carbon development, with the aim of making the new energy business a key growth driver for the company.

	2022	2023
Capital expenditure for the new energy sector	about RMB999 million	Estimated at RMB3.3 billion

CITIC Dicastal

CITIC Dicastal is carrying out a major research project for CITIC Limited——the “Research and Application of Whole Life Cycle Manufacturing Technology of Low-carbon Emission Aluminum Alloy Components for Automobile”. This involves analysing the entire life cycle of aluminum alloy parts and implementing a comprehensive carbon emission assessment model for their manufacturing process. Moreover, a low-carbon technology library covering various aspects, such as design, simulation, raw materials, smelting, die casting, heat treatment, machining, coating, packaging, logistics, waste heat utilisation, recycling, energy consumption, and carbon capture, is being developed. This results in a complete, modular low-carbon production technology solution, ensuring full coverage of lightweight, low-carbon emission green technologies for aluminum alloy parts production. The project is expected to run from August 2021 to December 2024, with a research and development budget of RMB69.81 million.

CITIC Heavy Industries

In 2022, the R&D expenses of CITIC Heavy Industries reached RMB636 million, an increase of RMB120 million compared to the previous year, with a R&D investment intensity of 7.20%. Among them, RMB28 million was allocated specifically to the R&D of new energy technology equipment as well as energy-saving and environmental protection technology equipment.

	2022	2023
New energy technology equipment	√ Continued to collaborate with Longyuan Zhenhua, Mingyang Smart Energy, Guangdong Electric Power Design Institute, and other partners to advance its efforts in wind power technology. √ Completed the batch delivery of the single pile for the SPIC Jieyang Shenquan II Offshore Wind Power Project on time. This pile was the heaviest with the largest diameter in China at the time, representing a major milestone for the company’s progress in the new energy equipment industry √ Continued to expand the range of products and services related to offshore wind power core construction equipment and intelligent operation and maintenance. These include hydraulic pile-driving hammers, floating wind power platforms, and rock-socketed drilling machines. It is worth noting that the hydraulic impact pile hammer project has recently obtained certification from China Classification Society. √ The new energy equipment business achieved an operating income of RMB926 million, accounting for 10.49% of the company’s total revenue.	√ Focus on developing new energy equipment businesses such as wind power host equipment and key components, while continuing to expand investment in this area.
Energy-saving and environmental protection technology equipment	√ Completed the trial production and successful testing of China’s largest GPYJ900-12W tailings disc filter, marking a significant breakthrough in energy-saving and environmental protection technology. √ Continued to research on dualsupercritical power generation technology for low-quality coal gas under extreme conditions, as well as tailings treatment processes and key equipment technology.	√ Prioritise the progress in the “Technology Research and Engineering Application for High- Efficiency Recovery of Sintering Flue Gas Residual Heat Using Vertical Cooling” project with a planned R&D investment of RMB64 million. This initiative will effectively address the issue of inefficient use of waste heat from flue gas and the unregulated discharge of pollutants, thereby helping to achieve energy efficiency in the steel-making process.

2022

2023

New energy technology equipment

√ Continued to collaborate with Longyuan Zhenhua, Mingyang Smart Energy, Guangdong Electric Power Design Institute, and other partners to advance its efforts in wind power technology.

√ Completed the batch delivery of the single pile for the SPIC Jieyang Shenquan II Offshore Wind Power Project on time. This pile was the heaviest with the largest diameter in China at the time, representing a major milestone for the company’s progress in the new energy equipment industry

√ Continued to expand the range of products and services related to offshore wind power core construction equipment and intelligent operation and maintenance. These include hydraulic pile-driving hammers, floating wind power platforms, and rock-socketed drilling machines. It is worth noting that the hydraulic impact pile hammer project has recently obtained certification from China Classification Society.

√ The new energy equipment business achieved an operating income of RMB926 million, accounting for 10.49% of the company’s total revenue.

√ Focus on developing new energy equipment businesses such as wind power host equipment and key components, while continuing to expand investment in this area.

Energy-saving and environmental protection technology equipment

√ Completed the trial production and successful testing of China’s largest GPYJ900-12W tailings disc filter, marking a significant breakthrough in energy-saving and environmental protection technology.

√ Continued to research on dualsupercritical power generation technology for low-quality coal gas under extreme conditions, as well as tailings treatment processes and key equipment technology.

√ Prioritise the progress in the “Technology Research and Engineering Application for High- Efficiency Recovery of Sintering Flue Gas Residual Heat Using Vertical Cooling” project with a planned R&D investment of RMB64 million. This initiative will effectively address the issue of inefficient use of waste heat from flue gas and the unregulated discharge of pollutants, thereby helping to achieve energy efficiency in the steel-making process.

Green Production

We adhere fully to national laws and regulations, including the laws on preventing and controlling atmospheric, water and solid waste pollution. In line with the concept of whole lifecycle management, we control pollution at source, in our processes and at end-of-pipe. We also promote clean production through a coordinated approach of reducing pollution and carbon emissions. In 2022, the Company was not subject to any environmental lawsuits or penalties.

Measures Implemented: Key Achievements	Measures Implemented: Key Achievements
Water pollution treatment	In 2022, CITIC Environment processed around 506.7 million tons of wastewater, supplied 46.31 million tons of water, and provided 22.09 million tons of reused, recycled water. Additionally, it disposed of about 180,000 tons of sludge, reduced COD emissions by 152,187 tons, ammonia nitrogen emissions by 9,602 tons, SS emissions by 108,247 tons, total phosphorus emissions by 1,408 tons, and total nitrogen emissions by 10,339 tons.
Pollution reduction	CITIC Pacific Mining has optimised its ore dressing and processing technology and introduced high-pressure grinding rollers on one-third of its production line. This technology is expected to lower energy consumption per ton of concentrate by about 7% and reduce greenhouse gas emissions.
Pollution reduction	CITIC Heavy Industries has embarked on two transformation projects aimed at enhancing energy efficiency: a mechanical pump vacuum project and heat storage furnace project. Together, these initiatives will result in a yearly reduction of 7,055 tons of standard coal.
Enhancement of energy utilisation efficiency	CITIC Dicastal invested RMB750,000 for developing the new equipment project on residual heat of fuel gas, contributing to an annual maintenance fees cut of RMB30,000 and extended service life of more than 5 years.
Resource management platform construction	CITIC Heavy Industries has established an Internet + energy management platform that will analyse and control energy costs more effectively. The energy management system has passed a quality re-certification audit conducted by the China Classification Society.
Resource management platform construction	CITIC Engineering Leverages “IoT + CITIC Cloud” technology, and has developed a smart water service platform that manages its entire water service process.

Green Building and Office

We incorporate environmental protection concepts into every aspect of the design, engineering construction, and operation and maintenance of our buildings. We also promote a green office culture among our staff and encourage our subsidiaries to find innovative ways to save water, electricity, gas, paper and fuel. We also support paperless operations, meetings and training to foster a sustainable and healthy work environment.

CITIC Tower, which is home to our Beijing headquarters, exemplifies our commitment to sustainable practices. Since its opening, we have initiated a variety of measures to reduce energy consumption, such as energy saving during the winter season, installing updated lighting fixtures and fine-grained lighting, as well as optimising water pump controls. What’s more, The building team routinely collects and evaluates energy consumption and other operating data to assess equipment performance across the system. We also conduct month-over-month and year-over-year energy consumption analyses to ensure continuous improvement in energy efficiency.

Energy Saving Results and Plans for CITIC Tower (Beijing)
	2022	2023
Electricity saving	√ Optimized the control logic of the chilled water pumps on R3 and M6 floors of the building, controlled the operation of the pump group based on actual flow rate and set reasonable boundary frequency. The optimized water transport factor of chilled water (WTFch) was increased by 35.05% compared to the same period last year, saving 41,000 kWh of electricity and reducing carbon emissions by 25 tons year on year. √ Refined the management of public lighting in refuge areas and machine rooms by keeping the low-demand circuits closed through remote control. Despite an 8.42% increase in occupancy rate, the annual electricity consumption of the public lighting system only increased by 1.06%. √ Through measures such as thermal imaging scans and local sealing of the building envelope, as well as optimizing the anti-freezing setting for unoccupied areas, we reduced heating electricity consumption by 524,000 kWh, saved 3,238 GJ of heat, and reduced carbon emissions by 672.7 tons despite an increase in occupancy rate compared to the same period in 2021.	√ Plan to conduct energy efficiency inspections and sensor calibration for the cold source to optimize its performance. By refining the control strategy of the cooling tower and formulating the operating conditions of the cold machine, we aim to achieve a 2.5% increase in overall energy efficiency and save 112,000 kWh of electricity annually. √ As the second-largest energy-consuming subsystem in CITIC Tower, the annual electricity consumption of the public lighting system accounted for 8.53%, second only to the cold machine’s 8.79%. In 2023, we will continue to tap the energy-saving potential of public lighting by optimizing the management of the lighting in the cross area and the sky lobby of the building, with an expected annual saving of 71,000 kWh of electricity.
Avoiding food waste	√ Using the Ruijing System in our canteen for big data analysis, we have been able to calculate the precise amount of per capita food consumption and adjust ingredient purchases accordingly. √ We tailored the amount of food on offer according to the number of daily diners allowing us to minimise food waste substantially. √ We have posted slogans in prominent positions in our dining areas to encourage more rational food consumption. √ In 2022, monthly per capita food consumption decreased significantly compared with the previous year: grains and oils by 55%, meat and aquatic products by 50%, and fruits and vegetables by 51%. Kitchen waste also decreased by 61% (number of kitchen waste bins per month/number of diners in the same month) compared with the previous year.	√ Optimise ingredient processing techniques to improve cutting and processing yields and maximise the use of ingredient scraps to minimise kitchen waste. √ Increase our understanding of staff travel and leave patterns to determine the number of daily diners and achieve less wasteful meal preparation. √ Utilise big data to accurately capture the dining preferences of our employees, thus enabling us to identify popular dishes, better cater to employee needs, and reduce food waste. √ Promote simplified meals and standardised diets; offer small dishes and combined plates so that employees can make food choices according to their needs and encourage them to take leftovers home.

Energy Saving Results and Plans for CITIC Tower (Beijing)

2022

2023

Electricity saving

√ Optimized the control logic of the chilled water pumps on R3 and M6 floors of the building, controlled the operation of the pump group based on actual flow rate and set reasonable boundary frequency. The optimized water transport factor of chilled water (WTFch) was increased by 35.05% compared to the same period last year, saving 41,000 kWh of electricity and reducing carbon emissions by 25 tons year on year.

√ Refined the management of public lighting in refuge areas and machine rooms by keeping the low-demand circuits closed through remote control. Despite an 8.42% increase in occupancy rate, the annual electricity consumption of the public lighting system only increased by 1.06%.

√ Through measures such as thermal imaging scans and local sealing of the building envelope, as well as optimizing the anti-freezing setting for unoccupied areas, we reduced heating electricity consumption by 524,000 kWh, saved 3,238 GJ of heat, and reduced carbon emissions by 672.7 tons despite an increase in occupancy rate compared to the same period in 2021.

√ Plan to conduct energy efficiency inspections and sensor calibration for the cold source to optimize its performance. By refining the control strategy of the cooling tower and formulating the operating conditions of the cold machine, we aim to achieve a 2.5% increase in overall energy efficiency and save 112,000 kWh of electricity annually.

√ As the second-largest energy-consuming subsystem in CITIC Tower, the annual electricity consumption of the public lighting system accounted for 8.53%, second only to the cold machine’s 8.79%. In 2023, we will continue to tap the energy-saving potential of public lighting by optimizing the management of the lighting in the cross area and the sky lobby of the building, with an expected annual saving of 71,000 kWh of electricity.

Avoiding food waste

√ Using the Ruijing System in our canteen for big data analysis, we have been able to calculate the precise amount of per capita food consumption and adjust ingredient purchases accordingly.

√ We tailored the amount of food on offer according to the number of daily diners allowing us to minimise food waste substantially.

√ We have posted slogans in prominent positions in our dining areas to encourage more rational food consumption.

√ In 2022, monthly per capita food consumption decreased significantly compared with the previous year: grains and oils by 55%, meat and aquatic products by 50%, and fruits and vegetables by 51%. Kitchen waste also decreased by 61% (number of kitchen waste bins per month/number of diners in the same month) compared with the previous year.

√ Optimise ingredient processing techniques to improve cutting and processing yields and maximise the use of ingredient scraps to minimise kitchen waste.

√ Increase our understanding of staff travel and leave patterns to determine the number of daily diners and achieve less wasteful meal preparation.

√ Utilise big data to accurately capture the dining preferences of our employees, thus enabling us to identify popular dishes, better cater to employee needs, and reduce food waste.

√ Promote simplified meals and standardised diets; offer small dishes and combined plates so that employees can make food choices according to their needs and encourage them to take leftovers home.

Ecological Conservation

Our environmental philosophy is to promote harmonious coexistence between humans and nature, while preserving vital ecosystems, biological species and genetic resources throughout our operations, thereby safeguarding ecological and biological security.

Implemented Measures	Key Achievements
Commitment to biodiversity conservation	CITIC Bank is committed to steering its financial resources towards biodiversity conservation, as demonstrated by its participation in the Joint Declaration of Banking and Financial Institutions in Supporting Biodiversity Conservation. To that end, the Bank provided credit support to the Youran Fishermen’s Professional Cooperative Society in Sansha Ganquan Island for its long-spine starfish trapping service. This initiative is critically important for improving coral reefs in the waters surrounding the Xisha and Nansha Islands and maintaining ecological balance in the South China Sea.
Enhanced environmental protection training and promotion	CITIC Pacific Mining has established a comprehensive environmental management system, under which employees receive environmental training courses on topics such as mine site clean-ups, indigenous heritage protection, weed control, waste management and animal and plant protection, before the start of work.
	CITIC Environment continued its River Health Check-up campaign with a series of activities that engaged local communities and primary school students. During the campaign, they became involved in testing the water quality of nearby rivers and went on virtual tours of the Chaonan Circular Industrial Park. A total of 180 events were held, involving 14,000 participants and reaching over 200,000 people. The campaign generated over 480,000 mentions on WeChat and nearly 120,000 online livestream views, with coverage from 500 media outlets.
Ecological restoration and rehabilitation	CITIC Construction identifies key flora and fauna that need protection during project environmental impact assessments, and prohibits excessive deforestation after projects commence. Prior approval is required for any temporary land occupation, deforestation or tree removals that are necessary. After the project is completed, the site will be restored and greened through plantings in accordance with the plan, thereby ensuring effective protection of the ecological environment and biodiversity.