報告 - China Water Affairs Group Limited
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報告
CONTENTS
目錄
REPORT OVERVIEW
50
INDEX OF THE CONTENTS OF THE GUIDELINES
48
ON ENVIRONMENTAL, SOCIAL AND GOVERNANCE
REPORTING OF THE HONG KONG STOCK EXCHANGE
34 PRACTICE THE COOPERATIVE
DEVELOPMENT OF SOCIETY
PROMOTING ENVIRONMENTAL IMPROVEMENT
18
CONSTRUCTION OF MANAGEMENT PLATFORM
17
MATERIALITY ANALYSIS
14
STAKEHOLDER ENGAGEMENT
09 13
OVERVIEW OF CORPORATE DEVELOPMENT
MANAGEMENT’S STATEMENT
07
STATEMENT OF THE BOARD
05
CORE VALUES
03
China Water Affairs Group Limited 2021 Environmental, Social and Governance Report
詞彙
GLOSSARY
“Al2(SO4)3” Aluminium Sulfate 硫酸鋁
“BOD” Biochemical Oxygen Demand 生化需氧量
“ClO2” Chlorine Dioxide 二氧化氯
“CO2” Carbon Dioxide 二氧化碳
“COD” Chemical Oxygen Demand 化學需氧量
“GJ” Gigajoule 吉焦
“H2S” Hydrogen Sulfide 硫化氫
“km” Kilometer 千米 / 公里
“km ”
2
Square kilometer 平方千米 / 平方公里
“kW·h” Kilowatt-hour 千瓦時
01
Glossary
“m3” Cubic meter 立方米
“MWh” Megawatt-hour 兆瓦時
“NaClO” Sodium Hypochlorite 次氯酸鈉
“NaOH” Sodium Hydroxide 氫氧化鈉
“NH3” Ammonia 氨氣
“NH3-N” Ammonia Nitrogen 氨氮
“PAC” Polyaluminium Chloride 聚合氯化鋁
“SS” Suspended Solids 懸浮物
02核心價値觀
CORE VALUES
03Water-oriented
Kindness to Society
04China Water Affairs Group Limited 2021 Environmental, Social and Governance Report
董事會聲明
STATEMENT OF THE BOARD
China Water Affairs Group Limited (“China Water” or the
“Company”), together with its subsidiaries and associates
(the “Group”), upholds the business philosophy of “Water-
oriented, Kindness to Society”, attaches great importance
to environmental, social and governance (ESG), and
organically integrates green operation and low-carbon
development with the Group’s core strategy to create a win-
win situation with satisfied customers, satisfied employees,
satisfied governments and satisfied shareholders.
The Group has established a four-tier ESG management
structure, which consists of the Board, the management,
the functional departments and the subsidiaries. The Board
is the chief ESG decision-making body, and is responsible
for the Group’s environmental, social and governance
strategies and reporting. The management is responsible
for ensuring the consistent implementation of ESG-
related work and reporting the progress to the Board on a
regular basis. The functional departments formulate work
plans for each ESG issue, supervise the implementation
of such plans and report to the management regularly.
The subsidiaries are equipped with dedicated personnel
who are responsible for performing specific ESG tasks
and carrying out data and information collection and
compilation.
During the reporting period, the Group continued to
improve its ESG management by holding focus group
meetings to identify, evaluate and shor tlist material
issues and allocate appropriate resources to ensure the
smooth implementation of ESG work. The management
is responsible for overseeing the preparation of the ESG
report, which will ultimately be reviewed and approved by
the Board.
05Statement of the Board
06China Water Affairs Group Limited 2021 Environmental, Social and Governance Report
管理層聲明
,
MANAGEMENT S STATEMENT
A t t h e 7 5 t h U n i te d N a t i o n s G e n e ra l strive for the building up of the “China
Assembly held in 2020, President Xi Jinping Water, Nourishing Thousands of Families
announced that “China will strengthen its with Love” brand, take concrete actions
intended nationally determined contribution in responding to our nation’s call and
by adopting more vigorous policies and fulfil corporate environmental and social
measures, and aim to peak CO2 emissions responsibilities.
by 2030 and achieve carbon neutrality
In anticipation of a low-carbon development
before 2060”. The green and low-carbon
trend in the next 40 years, China Water
development has marked the course of
has performed designing at the top level
technological revolution and corporate
and made overall deployment for the
transformation in the current era, which also
establishment of a green management
represented social progress and people’s
system from a global perspective, grasped a
aspiration for a better life.
profound understanding of the fundamental
As an advocate and a practitioner of low- requirements of green and low-carbon
carbon development, China Water has operation, and realized the targets of
been staying true to its roots and working “economical production”, “clean production”
hard for progress to uphold its business and “ethical production”, all of which enabled
philosophy of “Water-oriented, Kindness its cor porate development to be built
to Society”, implement the core strategies upon efficient use of resources, stringent
of water supply integration in urban and protection of the environment and effective
rural areas and water supply and drainage control of greenhouse gas emissions. With
integration through steadfast determination, the establishment of a well-structured green
07Management’s Statement
framework, the Group has successfully Looking forward, as par t of the wider
issued a US$200 million green bond in May effort in turning over a new leaf toward the
2021. construction of an ecological civilization
under the National 14 th Five-Year Plan,
The past year has been an unusual year
China Water will, by pooling together all
as the novel coronavirus pandemic has
resources and keeping abreast of the times,
profoundly changed the world and forced
continue to base its development on green
us to look at ourselves and the dialectical
value, set out key tasks in relation to green
relationship between our development and
and low-carbon development, compile an
the environment and society. Under such
action plan for future green operation, and
complicated circumstances, China Water
make greater contributions in tackling global
has ridden out the storm and improved
challenges such as climate change, water
itself from inside-out by enforcing strict
shortage and environmental pollution.
management internally and strengthening
cooperation externally, and as such, steadily
overcame each and ever y challenge
and achieved stable operating results. At
the same time, our operations in direct
drinking water, secondary water supply,
and Fingertip Water App were vigorously
promoted in pursuit of providing healthier
products and more convenient services for
the benefit of the society and community. Duan Chuan Liang
Chairman of the Board and
Executive Director
08China Water Affairs Group Limited 2021 Environmental, Social and Governance Report
企業發展概況
OVERVIEW OF CORPORATE DEVELOPMENT
ABOUT CHINA WATER
China Water Affairs Group Limited is a company listed
on the Main Board of The Stock Exchange of Hong
Kong Limited (stock code: 00855.HK) and its shares
are tradable under the Shenzhen-Hong Kong Stock
Connect.
Since 2003, the Group has been committed to investing,
constructing and operating water projects in mainland
China, including raw water, tap water, direct drinking
water, wastewater treatment, drainage operation,
comprehensive water environmental renovation and
water-related construction. The Group has grown into a Shanxi
professional and market-oriented international leader of
integrated water operation across multiple regions, with
its business covering 13 provinces, 3 municipalities and
over 60 cities in the PRC. The Group is headquartered Shaanxi
in Hong Kong, the PRC, with a national management
headquarter in Beijing, our capital city.
Henan
SCALE OF THE GROUP Sichuan
Chongqing
As of 31 March 2021, the Group had 199 water plants,
with a total designed daily water supply capacity of
14.94 million m 3; 19 sewage treatment plants, with
a total designed daily sewage treatment capacity of Guizhou
1.05 million m3; total length of water pipelines under
operation and maintenance of over 155,000 km; over
Jiangxi
6.70 million users of the Group’s water supply service
(number of registered water metres), representing an
increase of approximately 1 million users as compared Guangxi
to last year, comprising approximately 6.25 million
domestic users and approximately 450,000 commercial
and industrial users. The Group had a total of 9,965
employees, representing an increase of 609 employees
as compared to last year.
MAJOR OPERATING
Hainan
ACHIEVEMENTS
During the reporting period:
Tota l i n ve st m e n t a m o u n t
Total investment amount in in new large-scale water
construction and upgrade
3.68 5.57
acquisition of water projects
160
Total financing amount
projects
HK$ million HK$ billion HK$ billion
09Overview Of Corporate Development
Heilongjiang
Hebei
Beijing
Tianjin
Shandong
Jiangsu
Hubei
Hunan
Guangdong
Water supply business Environmental protection business Drainage operation
City water supply operation and construction Sewage treatment operation and construction
– Connected users over 6.7 million (including water environmental renovation
– Potential reaching population over 30 million people construction projects)
– Water pipelines of approximately 155,000 km
10China Water Affairs Group Limited 2021 Environmental, Social and Governance Report
Management indicators
Revenue Profit
Unit: HK$’000 Unit: HK$’000
2,662,074
10,345,533 2,507,289
8,694,303
2,130,283
8,302,211
7,580,176 1,761,524
5,707,895 1,379,346
2017 2018 2019 2020 2021 2017 2018 2019 2020 2021
Power consumption
per unit water supply Leakage ratio
Unit: kW-h/’000 m3 Unit: %
Industry average 300 Industry average 23.22%
251 15.55
15.25
237 15.05
226 227 14.43
225
14.32
2017 2018 2019 2020 2021 2017 2018 2019 2020 2021
Source: The industry average is extracted from Urban Water Supply Statistic Yearbook (2019) of China Urban Water Association
11Overview Of Corporate Development
HONOURS
China Water was awarded “Best Infrastructure and Public Utilities
Stock Company” at the 5th Golden Hong Kong Stocks Awards.
Our subsidiary, Jingzhou Water Affairs Group Co., Ltd., was named
as “National Civilized Unit” in 2021.
Our subsidiary, Changsha (China Water) Group Co., Ltd., was rated
as “Advanced Unit in Water Supply Industry of Hunan Province” in
2021.
M u l t i p l e w a te r p l a n t s u n d e r o u r s u b s i d i a r i e s , n a m e ly
Zhenxinzhuang Water Plant of Yuncheng Silver Dragon Water
Affairs Co., Ltd., Liuji Water Plant of Wuhan Xinzhou District
Changyuan Water Supply Co., Ltd., and the South-to-North
Water Transfer Project – Ancillary Water Treatment Plant of Yexian
Guoyuan Water Affairs Co., Ltd., were rated as “Best Water Plant
Practice in Rural Water Supply” by the Ministry of Water Resources
of the PRC in 2021.
12China Water Affairs Group Limited 2021 Environmental, Social and Governance Report
利益相關方參與
STAKEHOLDER ENGAGEMENT
Stakeholder engagement is an integral part of the corporate governance of China Water. The Group’s stakeholders
mainly include our shareholders, investors, creditors, the government, our customers, consumers, employees,
suppliers and the local communities. Adhering to our operating philosophy of “Water-oriented, Kindness to
Society”, the Group has established open, transparent and efficient communication channels with its stakeholders
to promptly respond to their demands and to understand their expectations and suggestions on the sustainable
development of the Group.
The Group defines its stakeholders based on the following four principles:
Responsibility: Decision-making: Dependence: Impact:
Stakeholders associated Stakeholders who have Stakeholders who rely Stakeholders in the vicinity
with the Group in terms of decision-making authority to a significant extent on of the Group’s business
policies, laws, regulations, over the Group; the Group’s operation who are affected by our
contracts, financials and and governance; operation.
operation;
Stakeholders Means of engagement and communication Concerned Issues Frequency or schedule
General meeting Regularly/as and when necessary
Results announcement meeting Economic performance Annually/biannually
Annual/interim report Supply chain management Annually/biannually
Shareholders, Press release/announcement Organisational structure Regularly/as and when necessary
investors, creditors Roadshow Governance measures Regularly/as and when necessary
Investor conference As and when necessary
Site visit As and when necessary
Correspondence Operational safety As and when necessary
Regulatory inspection Product quality and service Regularly/as and when necessary
Site visit Compliant operation As and when necessary
Themed conference Emissions As and when necessary
The government Energy saving and
Seminar Regularly
consumption reduction
Progress report Labour standards Regularly
Customer satisfaction survey Annually
Community services Regularly
Plant open day Product quality and service Regularly
Customers, consumers Hearing Consumer rights protection As and when necessary
User seminar Regularly/as and when necessary
WeChat official account As and when necessary
Business meeting Regularly
Employee seminar Remuneration and benefits Year-end/half-year
Employee representative meeting Employment Annually/biannually
Interview Development and training As and when necessary
Employees Team building Work environment Regularly
Training Health and safety Regularly/as and when necessary
Employee group activity Labour standards Regularly
China Water News (internal publication) Regularly
Procurement tender As and when necessary
Resources use
Site visit As and when necessary
Procurement behaviours
Suppliers Meeting As and when necessary
Anti-corruption
Product briefing As and when necessary
Plant open day Regularly
Community service Community investment Regularly/as and when necessary
Local community Survey on environmental and social impact Charity and relief As and when necessary
Public welfare and charity event As and when necessary
13Materiality Analysis
實質性分析
MATERIALITY ANALYSIS
With reference to the requirements of“Environmental, Social and Governance Reporting Guidelines”of
the Hong Kong Stock Exchange and the issues stated in the materiality list in“G4 Sustainability Reporting
Guidelines”issued by Global Reporting Initiative (GRI) and taking into account the results of stakeholder
engagement, China Water has identified, prioritised and verified issues of materiality and determined the
level of disclosure and reporting boundaries.
Process of materiality analysis:
Management discussion
Analyse operation indicators
Feedback on assessment results
Internal and external expert advice
Experience of industry veteran
Gather community feedback
Feedback from suppliers
Source
of issues
Align with the Group’s development strategies
Attended to the concerns of our stakeholders
Reduce environmental and social impacts
Enhance the Group’s governance
Selection
criteria
14China Water Affairs Group Limited 2021 Environmental, Social and Governance Report
IDENTIFICATION
By rationalising our policies, setting out clear strategies, reviewing our business and determining our sustainable
development goals, as well as considering our stakeholder engagement, the Group has identified 20 materiality issues
and determined the scope and boundaries of their impact.
Scope of impact
Materiality External
No. Aspect Boundary
issues Internal Investors Customers
and Government and Suppliers Community
Creditors Consumers
1 Establish a Governance measures
rational, effective
2 Organisation structure
and legitimate
3 management Economic performance
4 platform Compliant operation
5 Actively, Emissions
comprehensively Energy saving
6 and sustainably and consumption reduction
promoting
7 Environmental protection Materiality
environmental
8 improvement Resources use aspects are
applicable
9 Employment
to China
10 Remuneration and benefits Water and its
11 Development and training subsidiaries
and associated
12 Health and safety
Practice companies(1)
13 cooperative Labour standards
development
14 Supply chain management
of society
15 with passion, Procurement behaviours
16 kindness and Anti-corruption
aggressiveness
17 Product quality
18 Customer confidentiality
19 Community investment
20 Charity and relief
represents materiality issues with larger impacts on represents materiality issues with less impacts on
stakeholders stakeholders
(1)
Kangda International Environmental Company Limited (“Kangda International”) is not included in this report. For details of Kangda
International’s Environmental, Social and Governance ("ESG") performance, please refer to Kangda International’s ESG Report
2020.
15Materiality Analysis
PRIORITISATION
The identified materiality issues are prioritised in terms of importance according to the degree of impact on the
economy, environment, society as well as the assessment and decision-making of our stakeholders.
Priority of materiality
Product quality
5
and decision-making of stakeholders
Degree of impacts on assessment
Employment Economic performance
Remuneration and benefits Compliant operation
Emissions
Development and Health and safety
Procurement Organisation
training behaviours structure
Customer
confidentiality Resources use Energy saving and Environmental protection
consumption reduction
2.5 Community
investment
Governance measures
Anti-corruption
Labour standards
Charity and relief
Supply chain management
0
2.5 5
Degree of impacts on economy, environment and society
Sound operational Ongoing environmental Social co-development
management optimisation
High materiality Medium materiality
Product quality Employment
Economic performance Remuneration and benefits
Compliant operation Development and training
Emissions Customer confidentiality
Health and safety Labour standards
Organisation structure Supply chain management
Procurement behaviours
Environmental protection
Low materiality
Energy saving and
consumption
Community investment
reduction
Anti-corruption
Resources use
Charity and relief
Governance measures
VERIFICATION
In respect of the identified and prioritised materiality issues, the Group has collected opinions from experts, users
and stakeholders and carried out verification in many ways. Meanwhile, the Group formulated administrative
measures regarding the indicators involved in the materiality issues to determine the methods and procedures of
indicator collection so as to ensure the reasonableness, balance and completeness of the report.
16China Water Affairs Group Limited 2021 Environmental, Social and Governance Report
構建管治平台
CONSTRUCTION OF MANAGEMENT PLATFORM
Sound corporate governance is essential to boost The Group’s governance policy is in compliance with
investor confidence as it helps to define decision- the relevant guidelines in the “Corporate Governance
making procedures and management responsibilities Code” and “Corporate Governance Report” as set
and increase operation transparency. China Water has out in Appendix 14 to the Rules Governing the
always been committed to maintaining high standards Listing of Securities on The Stock Exchange of Hong
of corporate governance and strictly complying with Kong Limited. We have built a legitimate, rational
national laws, regulations and industry standards and efficient governance model by establishing a
in the course of its operation and management as sound management structure with comprehensive
well as its mergers and acquisitions. It has been rules and regulations, conducting regular audits,
steadfastly implementing its sustainable development fully implementing risk prevention and control, and
strategy to provide sufficient protection to the interests disclosing accurate corporate information in a timely
of its shareholders and create values for the society. manner.
THE BOARD RISK MANAGEMENT
As the highest decision-making body, the Board The Board is fully responsible for maintaining
is responsible for formulating and authorising the a sound and effective inter nal control system
Group’s governance policies, providing leadership for the Group, which include establishing a risk
and supervising our management, reviewing the management framework, defining authorities,
Group’s business performance, and ensuring effective safeguarding corporate assets against unauthorised
risk management and internal control. The Group’s misappropriation or handling, ensuring proper
Board comprises 14 directors, including 5 executive maintenance of financial records for internal use or
directors, 4 non-executive directors and 5 independent disclosure, and ensuring compliance with laws and
non-executive directors. industry regulations.
The Board has set up three board committees, T h e G ro u p h a s e s ta bl i s h e d a fo u r- l eve l r i s k
namely the Audit Committee, Nomination Committee management framework comprising the decision-
and Remuneration Committee. making level (the Board), the executive level
(management), the operation level (departments of
The Audit Committee is mainly responsible for reviewing different functions in the Group’s headquarter) and the
the Company’s accounting policies and monitoring corporate level (person-in-charge of risk management
the financial reporting procedures, monitoring the of the Group’s subsidiaries) to meet the requirement
performance of the internal and external auditors, for continuous control of risks during our business
reviewing and verifying the effectiveness of the Group’s development. Within the framework, the Board is
risk management and internal control measures, responsible for implementing controls from the top,
and ensuring compliance with applicable laws and while the business level, which includes our finance,
regulations and regulatory requirements. engineering, operation, legal and human resources
The Nomination Committee is responsible for teams, utilise their expertise to help our management
identifying qualified candidates for the Board, to discharge their internal control responsibilities.
nominating talented professionals and quality Meanwhile, the Audit Committee, assisted by our
individuals to join the Group, safeguarding a strong external auditors, is responsible for monitoring the
and diverse Board, and making recommendations to practices of our management and the effectiveness of
the Board on matters relating to the appointment or the internal controls in place.
reappointment of directors as necessary. During the reporting period, the Group’s management
The Remuneration Committee is mainly responsible held risk management meetings with our operation
for making recommendations on the remuneration level and identified three types of significant risks,
policies and systems for senior management of the namely operational risk, compliance risk and financial
Company, reviewing the Company’ s remuneration risk. The audit department assessed our potential risks
structure and formulating remuneration incentive through surveys and interviews to further distinguish
plans to ensure that the remuneration level is in line our risks and submitted the “Risk Management and
with the Group’s long term interests and risk policies. Internal Control Report” to the Audit Committee.
GOVERNANCE OF PROJECT COMPANIES
The Group abides by the “Administration Measures for perform such duties and exercise such powers of
the Concession Arrangements of Infrastructure and a decision-making organ, supervision organ and
Public Utilities” in mergers and acquisitions of new management organ respectively in strict compliance
projects. It actively cooperates with local governments with the Company Law of the People’s Republic of
to acquire project concession through public tenders China.
or competitive negotiation, and establishes project
companies at the same time. A board of directors, For details of the corporate governance, please refer
board of supervisors and operation and management to the relevant contents disclosed in the annual report
team are formed within the project companies to of the Group.
17Promoting Environmental Improvement
推進環境改善
PROMOTING ENVIRONMENTAL IMPROVEMENT
From the Kyoto Protocol to the Paris Agreement, low- steady growth in its main business of water supply and
carbon has always been a hot topic in promoting wastewater treatment, while continuing to vigorously
environmental improvement. “Achieving the goals of promote water supply integration in urban and rural
peaking carbon emissions by 2030 and achieving areas and the piped direct drinking water business,
carbon neutrality by 2060” are the major strategic striving to improve the living environment in rural areas
decisions made after careful consideration by the and provide healthy drinking water to more people.
PRC gover nment, and represent an impor tant Following the publication of the “Green Operation
foothold for systematic economic and social change Proposal for China Water Group”, the Group has mainly
as the PRC officially enters the era of low-carbon focused on organizing and commencing works related
development. to energy saving and consumption reduction, reduction
of the leakage ratio and utilization of clean energy
As a public utility company, China Water cannot and
throughout the year, and has achieved remarkable
has no reason to stay away from this low-carbon
results.
revolution. In the past year, the Group maintained
18China Water Affairs Group Limited 2021 Environmental, Social and Governance Report
Time Will Come When We Shall Mount the Wind and
Break the Waves – The Issuance of Green Bond
Leveraging on the highest priority given to environmental The framework for green finance has been developed
protection over the years and the outstanding to elaborate how the Group plans to implement green
achievements in promoting environmental improvement, finance transactions to support projects and works
the Group has developed a well-structured framework for that generate environmental benefits, thereby better
green finance and successfully issued US$200 million, achieving the Group’s business strategy and vision for
fixed-rate, senior unsecured green notes on 18 May 2021. green sustainability. A green finance transaction may
The five-year bond in Reg S only format will mature on be an issuance of bonds, loans or other debt-type
18 May 2026 with 4.850 per cent coupon. An equivalent financing products, the proceeds of which shall be
amount of the net proceeds were 100% allocated to the used for green projects as defined in the framework.
Group's existing sustainable water supply projects in
accordance with the Company's green finance framework.
Management procedure for a green finance transaction:
Project
Purpose of Management of
evaluation and Reporting
the fund selection the fund
Types of green projects:
Construction, modification or Construction of renewable
Sustainable
Renewable
upgrade of water supply and
water resources wastewater treatment related
energy (including solar and
and wastewater energy wind energy) production
management facilities, infrastructure and
system. units.
19Promoting Environmental Improvement
List of green projects associated with this issuance:
Current
Type of
Name of project Location progress of the
project
project
Daya Bay Petrochemical Zone Water Plant Phase II Water Huizhou City,
In operation
Project supply Guangdong
Chenxi County Water Plant and Ancillary Pipeline Water Chenxi County,
In operation
Construction Project supply Hunan
Water
Ji’an Chengbei Water Plant Project Ji’an City, Jiangxi In operation
supply
Water Huizhou City,
Daya Bay Central District Water Plant Phase II Project In operation
supply Guangdong
Water Wannian County,
Jiangxi Wannian Shizhen Water Plant Construction In operation
supply Jiangxi
Ningxiang City Zhengnong Water Plant Relocation Water Ningxiang City,
In operation
Project supply Hunan
Yifeng County Liangtou Water Plant 80,000 tons/day Water Yifeng County,
In operation
Water Intake Upward Adjustment Project supply Jiangxi
Xiezhou Water Purification Plant and Urban Main Water Yuncheng City,
In operation
Pipeline Network Construction Project supply Shanxi
Hubei Jingzhou City Urban Water Supply Pipeline Water Jingzhou City,
In operation
Network Construction and Renovation Project supply Hubei
Guangdong Huizhou Daya Bay District Water Supply Water Huizhou City,
In operation
Pipeline Network Construction and Renovation Project supply Guangdong
Jiangxi Pingxiang City Urban Water Supply Pipeline Water Pingxiang City,
In operation
Network Construction and Renovation Project supply Jiangxi
Hunan Ningxiang City Water Supply Pipeline Network Water Ningxiang City,
In operation
Construction and Renovation Project supply Hunan
Yongchuan
Chongqing Yongchuan District Water Supply Pipeline Water
District, In operation
Network Construction and Renovation Project supply
Chongqing
Note: According to the framework for green finance, all project types listed in this table fall under “Sustainable
water resources and wastewater management”.
20China Water Affairs Group Limited 2021 Environmental, Social and Governance Report
Into Our Rural Villages, Embraced by Clear River Flows
– The Continuous Advancement of Water Supply Inte-
gration in Urban and Rural Areas
In January 2021, the “Opinions of the CPC Central in urban and rural areas, in order to achieve a rural
Committee and the State Council on Comprehensively water supply pervasion rate of 88% by 2025.
Advancing Rural Vitalization and Accelerating the
Modernization of Agriculture and Rural Areas” Maintaining a steadfast determination in implementing
has specifically proposed for the comprehensive water supply integration in urban and rural represents
advancement of rural vitalization as a major task a strategic decision for the Group to uphold the
in realizing the great rejuvenation of the Chinese business philosophy of “Water-oriented, Kindness to
nation, the strengthening of rural public infrastructure Society” and to better serve the people’s livelihood
construction, the implementation of rural water and economic and social development while ensuring
supply safeguarding projects, the enhancement a quality and safe urban water supply. Since the
of small and medium-sized reservoirs and other implementation of such projects, many of the
stable water supply projects construction and water Group’s companies have fundamentally achieved
source protection, the implementation of large- full coverage of urban and rural water supply and
scale construction of water supply projects and have accumulated rich experience in operation and
standardized modification of smaller projects, and the management, solving many rural drinking water
conditional advancement of water supply integration problems that have long troubled local governments
and benefiting millions of rural residents.
Case: Water supply integration in urban and rural areas in Pengze County of
Jiangxi is largely completed
Jiujiang Pengze Silver Dragon Water Affairs Co., Ltd., a subsidiary of the Group, has
been responsible for promoting water supply integration in urban and rural areas
in Pengze County of Jiangxi, for which total investment was RMB478 million. The
company expanded the Pengze County No. 2 Water Plant by increasing its water supply
capacity by 40,000 m3 per day; a combination of centralized and decentralized water
supply methods were adopted in urban districts, characterized by the newly built
Tianhong Water Plant, Huangling Water Plant and Haoshan Water Plant, the modified
and expanded Mianchuan Water Plant, Madang Water Plant, Yangzi Water Plant,
Shangxiling Water Plant, Leguan Water Plant and Dongsheng Water Plant, and the
renovation of 3 small rural water supply facilities; 797.23 km of water transmission and
distribution pipeline networks and 920.68 km of pipelines to villages and households
were laid, which solved the drinking water safety problem for 372,700 people from 176
administrative villages in 17 towns and villages in Pengze County.
Case: Efficient takeover of rural water supply in Wugang During the reporting
City of Henan Province period
Wugang Silver Dragon Water Affairs Co., Ltd., a subsidiary of
the Group, has completed a takeover of all rural water supply
projects in Wugang City in only six months through efficient
490,000
coordination and a well-developed takeover proposal, including households
3 rural water plants and 84 rural water supply facilities, were new household
covering an area of 612 km2 and serving a rural population of
nearly 250,000. After the takeover, the management of rural users of the Group
water supply has been significantly improved through various
administrative measures such as optimizing the water meter
reading method, strengthening the management of water
1.71
meter services, carrying out energy saving and consumption million people
reduction, repairing and renovating pipeline networks, were new rural
and expanding payment channels, which have laid a solid water users
foundation for us to continue exploring the rural market.
21Promoting Environmental Improvement
How So Crystal Clear the Water We Pursue – The Vigorous
Effort in Developing the Direct Drinking Water Business
The development of the direct drinking water business with an aim to provide healthy and quality water for the
general public represents a vital step to meet people’s pursuit of a better life in a new era, to lead a healthy lifestyle
and to create a new point of growth for China Water, and is a strategic choice to align with the social development
trend and the needs of the people as well as to demonstrate corporate value.
Established a wholly- Established a joint Signed a cooperation Many of our
owned head office venture, namely Jiangxi framework agreement subsidiaries have
in Changsha City, Yinli Direct Drinking with Nanjing Aquacup formed their own
Hunan Province for Equipment Co., Ltd., with Technology Co., distinctive models
the direct drinking Japan’s ORIX and Toray Ltd., laying a solid for the development
Group, and completed the
water business, which construction of factory and foundation for further and operation of the
fully enhanced our production lines, which development of the direct drinking water
management level enabled automated and direct drinking water business, which are
and market expansion large-scale production, market. widely recognized and
capabilities. and the production of supported by local
equipment products of governments and
first-class quality. public.
The Group has Direct drinking water The total accumulated Serving a population of
established direct projects invested number of projects over
drinking water during the reporting exceeded
40 232 800 1
companies in period
cities projects projects millionpeople
22China Water Affairs Group Limited 2021 Environmental, Social and Governance Report
Eco-friendly
Safe
Water-saving
Convenient
Professional
Economical
Straight from Running Industrial-grade
Over 90% Ready to drink, Operated by
the tap, no disinfection equipment and
of raw water no boiling a team of
packaging cycle in closed centralised
utilisation rate. needed. experts to erase
needed. pipelines with management
concerns.
online quality to keep
monitoring.
maintenance
costs low.
Case:
The Group has invested over RMB40 million in Gao'an City, Jiangxi Province, and
has completed 117 direct drinking water projects for enterprises and institutions,
including a 60% direct drinking water coverage rate for school campuses,
benefiting more than 120,000 people. At the same time, 21 residential direct
drinking water projects are being implemented, benefiting approximately 55,000
residents. Currently, Gao'an City ranks first in the province in terms of direct
drinking water supply pervasion rate.
Case:
The Group has invested RMB29 million in the construction of direct drinking
water projects in Xinyu City, Jiangxi Province, including 9 projects for school
campuses, 7 projects for enterprises and institutions, and 5 projects for residential
communities, benefiting more than 60,000 people. In addition, the Group has
invested in the construction of 3 municipal public area drinking water facilities.
Case:
The Group has invested RMB35 million in Yongchuan District, Chongqing, and
completed 18 piped direct drinking water projects for residential communities,
benefiting 20,000 households; and 13 piped direct drinking water projects for
enterprises and institutions, benefiting approximately 10,000 people.
23Promoting Environmental Improvement
Environmental Management
System Throughout the Process
I n o rd e r to re g u l a te t h e e nv i ro n m e n ta l a n d s o c i a l
management of investment and construction projects,
the Group has formulated the “Environmental and Social
Management System” (the “ESMS”) in 2011. It was subjected
to multiple revisions and the latest version was prepared in
September 2020. ESMS provides that the investment and
construction projects under the Group shall comply with the
system for the purposes of comprehensive identification and
analysis of any potential environmental and social risks and
formulation of remedial measures. Disclosure of information,
discussion about concerned areas and supervision from
relevant stakeholders shall be duly conducted throughout
the implementation of the projects. Meanwhile, the Group
has established a standardised management system
which combines five key elements: water production, water
supply, safety, service and branding. The Group inspects
and supervises the compliance of its subsidiaries with the
relevant standards on an irregular basis. An evaluation
is conducted every year, whereby reward or punishment
is made based on the mar ks given. Environmental
management covering the whole process from initiation to
ultimate operation of a project is basically achieved.
Relish in our Water, Rippling on the Glimmering
Sunlight – Engaged in Urban Water Supply
The Group has been deeply engaged in the urban water
supply business for decades and has a professional
operation team with rich experience. The Group provides
safe and quality drinking water to thousands of households
through excellent management, and a strong sense of
responsibility and commitment, to protect people’s livelihood,
boost the economy and serve the society.
During the
reporting period
1.463
Supply of purified water
billion m3
Ensuring accessibilities to
water for drinking and other
30
need for
million people
24China Water Affairs Group Limited 2021 Environmental, Social and Governance Report
Let Water be the Protector of Our Field and Encircles
our Green Earth – The Reduction of Environmental
Impact of Wastewater
Wastewater collection and treatment and resource ensure that the effluent quality is in compliance with
utilization are the core components of urban the grade 1-A standard of the “Discharge Standard
environmental infrastructure, and an impor tant of Pollutants for Municipal Wastewater Treatment
foothold in fighting the hard battle against pollution. Plant” (GB18918-2002), and all wastewater treatment
The Group continuously processes its wastewater projects are equipped with effluent monitoring
effectively to minimize its environmental impact. systems to enable recording of effluent quality data in
Meanwhile, the Group has upgraded its standards a timely and reliable manner.
and modified its wastewater treatment plants to
During the
reporting period
192
Total processed sewage
million m3
41,097
COD emissions reduced by
tonnes
19,795
BOD emissions reduced by
tonnes
35,737
Discharge of SS reduced by
tonnes
4,660
NH3-N emissions reduced by
tonnes
25Promoting Environmental Improvement
O u r D a p p l e d S h a d ow s H a n g i n g A s l a n t O ve r
Clear Shallow Water – The Commencement of
Comprehensive Remediation of Water Environment
The comprehensive remediation of water environment water culture and water economy, with an aim
plays an impor tant role in improving the living centred around enhancing people’s sense of access,
environment of cities and towns, accelerating happiness and security, the Group is actively
the construction of an ecological civilization and par ticipating in the comprehensive remediation
promoting high-quality development. Starting from of urban water environment and extending the
water resources, water ecology, water security, enterprise’s environmental value chain.
Case: Comprehensive remediation of water environment project of Maozhou River
in Shenzhen
T h e r e m e d i a t i o n o f Ma o z h o u
River has always been a major task
for Shenzhen. Through a series
o f e n g i n e e r i n g m e a s u re s t h a t
eliminate the threat of flooding,
cl e a n up r ive r d eb r i s, d re d g e
riverbed sediment and improve
wa t e r q u a l i t y, Ma o z h o u R ive r
has once again become clear
and beautiful for the world to
see. The Group’s portion of the
construction works includes two
ecological water replenishment
projects and four drainage pumping
stations construction projects,
mainly completing the laying of
31.4 km of water replenishment
pipelines, the newly built of 38
exhaust chambers, 51 blow-off
chambers, 50 valve chambers,
13 flow meter chambers, 13 flow
regulating chambers, as well as
the greening and lighting of roads
within the project area.
Case: Phase II of the comprehensive water and riverbank treatment campaign“Two
Rivers and Fourteen Nullahs”in Hegang City
Phase II of the comprehensive water
and riverbank treatment campaign
“Two Rivers and Fourteen Nullahs”in
Hegang City mainly includes channel
works, sediment dredging works,
sewage interception and pipeline
works, greening works, roads and
bridges, wastewater treatment stations
and landscape along the river. The
Group is responsible for construction
in the Xishan Nullah section, which
is 6.6 km long and has the largest
workload among the 13 tender
projects. At present, the laying of 7,011
meters of wastewater pipelines, the
preparation of 412,100 square meters
of green area, the planting of 6,387
trees, the construction of 9 public
toilets, 7 bridges and 1 wastewater
treatment station, as well as the whole
river dredging and the construction
and maintenance of barges have been
completed.
26And Then We Encounter the Shade of a Willow, Bright
China Water Affairs Group Limited 2021 Environmental, Social and Governance Report
Flowers and a Lovely Village – The Commencement of
Urban and Rural Drainage Operations
Improving the living environment in urban and rural implement the concept of ecological civilization. The
areas and building beautiful and liveable villages Group focuses on the issues relating to the urban
are important initiatives to promote integration in and rural ecological environment, and vigorously
urban and rural areas, to promote the harmonious commences drainage operations to protect our clear
resonance bet ween towns and villages, and to waters and green mountains.
Case: Urban and rural drainage integration PPP Project in Ninxiang City, Hunan
Province
The Group successfully won a tender
for an urban and rural drainage
integration PPP project in Ningxiang
City in July 2020, which includes
both urban and rural parts. The
urban part consists the expansion
and improvement of Ningxiang City
Wastewater Treatment Plant, the new
construction of Baimaqiao Wastewater
Treatment Plant and the phase III
construction of Dongcheng Wastewater
Treatment Plant. The rural part
consists the operation of 30 wastewater
treatment plants and ancillary pipeline
networks with an aggregate scale
of 40,000 m3 per day and a pipeline
network length of approximately 151
城市排水管網運維
km, and the upgrading and renovation
of 26 wastewater treatment plants.
Case: Domestic wastewater treatment facilities bundled PPP project in Luhe County,
Guangdong Province
T h e G r o u p's c o n s t r u c t i o n o f
the bundled PPP project for
domestic wastewater treatment
facilities in Luhe County involves
8 towns and 253 natural villages,
including 5 town-level wastewater
treatment plants, 137 village-level
wastewater treatment stations,
w i t h a n a g g re ga t e t o w n - l e vel
pipeline net work of 20.97 km
and wastewater treatment scale
of 14,900 m 3 per day, benefiting
approximately 122,900 residents.
27Operation and Maintenance of Urban Drainage Network
Promoting Environmental Improvement
Within the Group there are professional providers and management model for its urban rainwater and
of operation and maintenance for urban drainage sewage pipeline network, which has continuously
network. With our flexible mechanisms, efficient increased the operational efficiency of our drainage
m a n a g e m e n t , c a p a bl e te a m s a n d ex te n s i ve pipeline network and significantly improved the urban
experience, the Group has established a scientific landscape and water environment quality in the
and systematic operation and maintenance system region.
Together We Have the Autumn Water and the Skies on
High – The Strengthening of Our Effort in Energy Saving
and Emission Reduction
The year 2021 has finally become a watershed for the and policies in the area of ecological civilization
PRC to achieve “peak carbon emissions” and “carbon construction and carbon emissions, sparing no effort
neutrality”, as President Xi Jinping has emphasized at to promote energy saving and emission reduction,
the ninth meeting of the Central Financial and Economic and actively transforming to a green and sustainable
Affairs Commission that “peak carbon emissions and growth model. Through the publication of the “Green
carbon neutrality should be incorporated into the overall Operation Proposal for China Water Group”, we have
layout of building an ecological civilization, and we comprehensively elaborated and analysed the grave
should put forth a spirit of perseverance in achieving difficulties in energy use and carbon emission in the
the goals of peaking carbon emissions by 2030 and domestic and global water industries, and introduced
achieving carbon neutrality by 2060.” the green operation concepts of “economical production”,
“clean production” and “ethical production”, under
As a public utility company, the Group has always been which the Group fully supervises all companies within
a pioneer in low-carbon footprint, upholding the business the Group to carry out energy saving and emission
philosophy of “Water-oriented, Kindness to Society”, reduction practices.
firmly supporting the PRC government’s strategies
During the reporting period, there was no significant
environmental pollution incidents occurred within the Group.
Economical Clean Ethical
production production production
Continuous application
Improve resource of the environmental Emphasise the contribution
utilisation efficiency protection strategy of of the production process
and reduce energy and integrated prevention to the people, environment
material consumption. to o u r p ro d u c t i o n and society.
processes and services
to eliminate pollutants
before their generation.
28China Water Affairs Group Limited 2021 Environmental, Social and Governance Report
Emissions
The major pollutants emitted during production and operation of the Group are divided into two categories:
The first category represents the sludge The second category represents the waste
produced during the water production gases, sludge and treated discharge
process at the filtered water plant, the key produced during sewage treatment at
components of which are the dissolved sewage plant. Waste gases are CO2, H2S and
substances in the natural body of water NH3 produced in the course of bioprocessing;
and the water purifiers added during the sludge mainly includes silt, garbage and
purification process. excess activated sludge; major pollutants in
treated discharge are COD, SS and NH3-N.
The Group has in place a comprehensive set of management processes and operational procedures for general
emissions that have smaller impacts on the environment under its operation and management standards, covering
identification, discharge, disposal and regulation of emissions to ensure compliant emission. Hazardous emissions
produced by industrial sewage treatment plants are dealt with by qualified professional companies.
Emission categories and emission data (A1.1)
Total volume of Total volume
emission during of emission in
Category Emission Emission method Compliance with applicable laws and regulations
the reporting the last year
period (tonnes) (tonnes)
Naturally dissolved
Water supply Sludge substances and 180,296 165,442 Compliant emission
water purifiers
“Environmental Protection Law of the People’s
Below Below
Republic of China”
H2S emission emission Compliant emission
limit limit “Environmental Impact Assessment Law of the
Air emission
Below Below People’s Republic of China”
NH3 emission emission Compliant emission “Water Pollution Prevention and Control Law of the
limit limit People’s Republic of China”
3,928 4,533
COD Compliant emission “Atmospheric Pollution Prevention and Control Law of
the People’s Republic of China”
“Law of the People’s Republic of China on the Preven-
1,519 2,224
Treated
SS Compliant emission tion and Control of Environmental Pollution by Solid
discharge
Sewage Waste”
treatment
200 301
“Ambient Air Quality Standards”
NH3-N Compliant emission
“Environmental Quality Standards for Surface Water”
Sludge from domestic sewage
“Environmental Quality Standards for Underground
treatment plants is used for
Water Emission”
reclamation and electricity
Silt, garbage and generation after dehydration and “Standards for Odour Pollutants”
Sludge excess activated 73,704 60,710 desiccation; and sludge from “Pollutants Emission Standards of Urban Sewage
sludge industrial sewage treatment Water Treatment Plant”
plants is dealt with by qualified
professional companies after
dehydration and desiccation
29Promoting Environmental Improvement
Greenhouse gas (“GHG”) emission (A1.2)
GHG directly produced by the Group in the course of mainly attributed to power consumption in the course of
production and operation is very limited. It is mainly production. The direct and indirect GHG emissions are
produced from fuel used in production and office calculated in CO2 equivalent (unit: tonnes).
premises; while the indirect generation of GHG is
Scope 1 – Scope 2 – Scope 3 –
Category Direct GHG Indirect GHG Other indirect Total amount
emissions emissions GHG emissions
Water supply
1,749 320,546 N/A 322,295
business
Sewage treatment
31 52,764 N/A 52,795
business
Total 1,780 373,310 375,090
* The definition of GHG Indicator Scope is cited from United Nation’s Kyoto Protocol and The Greenhouse Gas
Protocol – A Corporate Accounting and Reporting Standard of WRI and WBCSD.
Scope 1: Direct GHG emissions which are derived from sources that are owned or controlled by the corporation
(including those produced in the course of production process and those produced in fuel consumption).
Scope 2: Indirect GHG emissions which result from the electricity, heating, cooling and steam purchased from
other entities for self-consumption (produced from purchased electricity).
Scope 3: Other indirect GHG emissions which are produced as a result of the activities of the entity but the
emissions are not derived from sources owned or controlled by the corporation. The Group has not
established any statistical method for scope 3.
Emission factor and global warming potential (“GWP”) are based on United Nation’s Inter-governmental Panel on
Climate Change (“IPCC”) data.
Hazardous wastes (A1.3/A1.6) Non-hazardous wastes (A1.4/A1.6)
The hazardous wastes produced in the course of The non-hazardous wastes produced in the course of
operation of the Group are mainly sludge produced operation of the Group are mainly sludge produced in
in our industrial sewage treatment plants. During the filtered water plants and domestic sewage treatment
reporting period, total sludge produced was amounted plants. During the reporting period, total sludge
to 4,988 tonnes, all of which were properly dealt with produced was amounted to 254,001 tonnes. Treated
by qualified professional companies. sludge, which met with the emission standards,
was dealt with by the local environmental hygiene
departments after dehydration and desiccation. Major
processing methods include reclamation, compost or
combustion for electricity generation.
30China Water Affairs Group Limited 2021 Environmental, Social and Governance Report
Energy saving and consumption reduction (A1.5)
Given the characteristics of the industry, filtered external experts together with professional third
water plants and wastewater treatment plants usually party institutions led by the headquarter, to conduct
carry out advance construction activities beyond a in-depth research and analysis on the operation
certain degree, while the rate of equipment upgrade of pumping stations, net work scheduling and
is relatively low, which means that there may be pipeline leakages of the water plants of the Group’s
a deviation from the actual demand during the companies, with an aim to fully explore opportunities
operation of water plants. In addition, water leakage for energy saving, scientifically develop leakage
and loss during the transmission process has always control measures, formulate, organize and implement
been a problem for the water supply industry. The feasible and practicable proposals for energy saving
Group has incorporated energy consumption and and consumption reduction according to the actual
leakage control indicators into its performance situation, and effectively reduce production costs.
assessment system, and has organized internal and
During the reporting period
Energy consumption of the water supply Increased as compared with last year
business accounted for the cost of
16.36 15.64
by
production with
% %
Energy consumption of the wastewater Decreased as compared with last year
treatment business accounted for the
19.02 21.60
by
cost of production with
% %
All of the energy used by the Group is indirect energy (A2.1)
Unit power consumption Fuel consumption
Category Power consumption (MWh)
(kW-h/’000 m3) (tonnes)
Water supply business 408,339 237 551
Sewage treatment
67,215 351 9
business
Total 475,554 N/A 560
Total energy consumption (converted from power consumption and fuel consumption) is 1,712,324 GJ
During the reporting period, the average leakage ratio of the Group’s water supply business was 15.05%, lower
than the average leakage ratio of 23.22% of the industry; the average power consumption per unit water supply
of the Group was 237 kW-h/’000 m3, lower than the average power consumption per unit water supply of 300 kW-
h/’000 m3 of the industry (A2.3).
31Promoting Environmental Improvement
Develop clean energy
Compared with traditional energy sources, solar distributed photovoltaic power generation to enhance
energy is an inexhaustible renewable energy source the utilization rate of clean energy. During the
with the advantages of complete cleanliness, absolute reporting period, the Group provided 52,669 MWh of
safety, relative extensiveness, resource abundancy clean energy, accounting for approximately 11% of
and economical potential, and plays an important total power consumption; as of 31 March 2021, the
role in low-carbon strategy. The Group makes full total installed capacity of the Group’s photovoltaic
use of the space and light conditions of its filtered projects has reached 67 MW, providing approximately
water plants and wastewater treatment plants, and 15.4% of total power consumption under full load
encourages the Group’s companies to implement operating conditions.
Implementation of water conservation and water source protection
The Group’s principal business is water supply and
wastewater treatment, while it does not have any
issue in sourcing water that is fit for purpose, but it
has always been an advocate and practitioner of water
conservation and efficiency (A2.4). During the reporting
period, the Group’s total water intake was 1,769.25
million tonnes, total water supplied was 1,721.9 million
tonnes, and total water consumption was 47.35 million
tonnes, representing a water consumption ratio of
2.68% per unit (A2.2).
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