ESG Report-Kunlun Energy

Message from the Chairman: By fully integrating ESG governance principles into corporate strategy and daily operations, Kunlun Energy remains steadfast in advancing sustainable development objectives. Upholding our founding mission, we are committed to becoming a globally recognized, domestically leading integrated green energy supplier. Through innovative solutions and responsible practices, Kunlun Energy will amplify its contributions to building a beautiful China and accelerating the nation's goals, driving transformative progress across the energy value chain.

Liu Guohai
Chairman & Executive Director

ESG Strategy

Material Issues: Kunlun Energy maintains close communication with internal and external stakeholders to keep abreast of material issues of concern to Kunlun Energy's development. Each year, Kunlun Energy conducts qualitative and quantitative analyses of materiality issues and distributes research and evaluation questionnaires to create a matrix of materiality issues.

Environment
Social
Governance

Climate Risk Management
Green Enterprise Building
Greenhouse Gas Emissions Management

Stable Supply of Clean Energy
Customer Health and Safety
Talent Training and Development
Employee Health and Safety
Legal Employment and Protection of Labour Rights and Interests
Employee Well-being

Business Ethics and Anti-Corruption
Corporate Governance

Resource Efficiency
Ecosystem and Biodiversity Protection
Waste Management
New Energy Utilization

Employee Satisfaction
Product and Customer Service Quality
Promoting Industry Development
Intellectual Property Protection
Sustainable Supply Chain Management
Innovation and Digital Transformation

Integrity and Compliance
Risk Management
Privacy and Information Security Management

Community Benefit and Local Development

In-depth Enterprise Reform

ESG Governance System

ESG Governance Structure

Board of Directors: Oversees the Company’s ESG strategy at the top level; authorizes the Sustainability Committee to assess sustainability and ESG performance; identifies ESG risks and opportunities; guides the establishment of ESG and "Carbon Peaking and Carbon Neutrality Goals"; and ensures effective execution of action plans

Sustainability Committee: Establishes corporate sustainability and ESG management policies and objectives; identifies risks and opportunities related to sustainability and ESG; reports progress to the Board; and provides recommendations

ESG Management and Reporting Working Group: Coordinates with departments and subsidiaries to implement ESG policies formulated by the Sustainability Committee; compiles ESG reporting; organizes sustainability training; conducts ESG improvement research; and submits reports to superiors

Departments & Subsidiaries: Execute daily ESG operational management; implement ESG-related objectives and policies into business operations; and participate in ESG report preparation.

ESG-linked compensation: In alignment with our commitment to sustainable development principles, the Company has fully integrated ESG metrics into the performance evaluation criteria for executive directors and senior management. These metrics encompass critical areas such as production safety, energy conservation and emission reduction, climate change adaptation, employee growth and development, diversity and employee welfare protection, sustainable supply chain development, effective corporate governance, business ethics compliance and anti-corruption initiatives. Performance evaluation outcomes are directly linked to performance-based compensation. This framework ensures that the management and directors prioritize ESG-related responsibilities as core components of their works.

ESG-Specific Management System

ESG Management Actions

ESG External Recognition

Sustainability Report

Kunlun Energy has established a "1+N+X" disclosure framework, demonstrating the Company's systematic approach and responsibility in practicing high-quality, sustainable development.

1：Core Sustainability Report N：Specialized Thematic Disclosures X：Dynamic Performance Updates

Annual ESG Report：

Environmental, Social and Gov...

Special Report:

Display of Kunlun Energy’s Excellent Practice Cases

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