China Huaneng's First ESG Report

Author: Di Chen Nov 14, 2023 10:20 PM (GMT+8)



Recently, the "2022 Environmental, Social, and Governance Report" (hereafter referred to as the "Report") was officially released on the corporate website of China Huaneng Co., Ltd. This marks the seventeenth consecutive sustainability-related report publicly disclosed by Huaneng since it pioneered the release of sustainable development reports among Chinese power generation enterprises in 2006. It is also the first report specifically named "Environmental, Social, and Governance (ESG)." The report has the following four highlights.

Adhering to National Strategic Needs, Continuous Emergence of Technological Innovations:

In terms of technological innovation, the Report outlines Huaneng's efforts in technological breakthroughs, improving patent quality, and the transformation of technological achievements. The group invested ¥13 billion in research and development throughout the year, undertaking over 40 national projects. It acquired authorization for 11,629 domestic patents, marking an 84.38% year-on-year increase and making it the only power generation enterprise to enter the A-grade in the State-owned Assets Supervision and Administration Commission's patent quality assessment. Notable achievements include the widespread application of Huaneng Ruiwo DCS system in 13 thermal power and 5 hydropower units, the completion and operation of the second phase of the Ruijin Power Plant, the country's first large-scale smart power plant using a domestically produced control and information system (DCS/DEH+SIS), and Huaneng Zhejiang Virtual Power Plant becoming the first in the country to participate in real-time grid dispatch and response adjustment.

Focusing on "Dual Carbon" Strategic Goals, Historic High in Low-Carbon Clean Energy Generation

According to the Report, Huaneng actively serves national energy policies, implementing the "Dual Carbon" strategic goals, and prioritizing energy security. It formulated the "3411" development framework for the medium and long term, focusing on building a new power system and a new energy system. The group adheres to simultaneously enhancing energy security capabilities and promoting green and low-carbon transformation, with new energy, nuclear power, and hydropower as the three main supports for transformation. In 2022, Huaneng's installed capacity of low-carbon clean energy reached 92.03 million kilowatts, accounting for 41.62%, setting a historical record in power generation and becoming a major source of profit and a key support.

Strengthening Talent Pool, Crafting the Huaneng Brand with Huaneng Craftsmen

In terms of talent cultivation, the Report details Huaneng's participation and organization of occupational skill competitions. To comprehensively enhance the professional skill levels of employees, Huaneng participated in five national and industry-level occupational skill competitions in 2022, hosting the "Huaneng Craftsman Cup" occupational skill competition at the group level six times. Throughout the year, a total of 10 collectives and individuals were awarded the National May 1st Labor Award and the National Workers' Pioneer Medal, achieving industry leadership. Jiangsu Company received the highest national recognition in skill talent cultivation—the honorary title of "Outstanding Contribution Unit in National Skill Talent Cultivation Work."

Strictly Regulating Corporate Governance, Upholding Compliance Bottom Line

According to the Report, Huaneng established a compliance management committee, implementing the "Strengthening Compliance Management Year" special work initiative. The group organized the headquarters, secondary units, and grassroots enterprises to establish a "comprehensive coverage and key areas" dual-line working mechanism based on the requirement of "full levels, full domains, full coverage, horizontally to the edges, vertically to the bottom, leaving no blind spots." It formulated "three lists" for issues, measures, and deadlines and coordinated the promotion of issue rectification. In 2022, Huaneng did not experience significant violations, and no major responsibility issues arose due to violations.