Environmental

In the context of the intensifying environmental crisis and the increasing impact of climate change, Dajin Heavy Industry is well aware of the significance of implementing the concept of green and low-carbon development. Adhering to the concept of clean and efficient production and protecting the natural ecology, the Company keeps contributing to the transition towards a low-carbon future for China and the world.

GHG emissions KPl in 2023

Total GHG emissions

57.580.18 tCO2e
Scope 1 Total direct GHG emissions

21,174.11 tCO2e
Scope 2 Total indirect GHG emissions

36,406.07 tCO2e

GHG emissions/RMB million of operating income

13.31 tCO2e/RMB million of operating income

Accelerating the Low-carbon and Energy-saving Transition:

In line with the need for global low-carbon development and an energy transition, Dajin Heavy Industry continues to promote high-quality wind power products and delivery low-carbon solutions. Based on the reduction of our own products’ carbon footprint and operational carbon emissions, we drive the low-carbon transition of upstream and downstream industries to jointly reduce carbon emissions and achieve a shared low-carbon transformation.

Dajin’s GHG emissions mainly include carbon dioxide (CO2), methane (CH4) and nitrous oxide (N2O). The total GHG emission is reported in terms of carbon dioxide equivalent. This year, we calculated the GHG emissions from production facilities and offices owned by Dajin Heavy Industry. Details of our GHG emission scope include:

1) Direct GHG emissions (Scope 1):

GHG directly generated from the use of gasoline, diesel, natural gas and propane for operations and the direct emission of carbon dioxide used as a protective gas during the production process.

2) Indirect GHG emissions (Scope 2):

GHG emissions generated from consumed electricity and consumed heat for operations.

Promoting Circular Economy

DAJIN upholds the principle of recycling. The Company improves the comprehensive utilisation of resources through initiatives, such as recyclingproduction waste and reusing waste generated from procurement. Penglai Facility set goals to achieve a production recycling rate of at least 90% by 2030 andachieve full circularity by 2040, in an effort to advance the circular economy at factories.

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Implementing energy-saving production processes

DAJIN continued to implement energy-saving technics in the production processes of steel plate cutting, bevel cutting, longitudinal and circumferential seams welding, coating, etc. These measures help us reduce the consumption of raw materials and usage of energy during production, enabling us to jointly reduce carbon emissions in procurement and production processes.

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Reduction of carbon emissions

Penglai Facility released the “Dual Carbon” targets for the first time and conducted the path for carbon reduction.Peak carbon by 2023 and achieve carbon neutrality for scope 1 and 2 not later than 2040.Set the carbon reduction target of achieving a 50% reduction by 2040 and a 70% reduction by 2050, with 2023 as the benchmark year. Offsetting carbon emissions by measures as energy efficiency, renewable energy application, and electri¬cation replacement.

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Contributing to the Low-carbon Transition of Society

DAJIN implements the concept of low-carbon development by extending our business to boost clean

energy applications such as building wind farms, striving to reduce our carbon emissions as

well as promoting society to undertake the low-carbon transition.

Total amount ofrenewable energy generated

402.87 GWh

Renewable energy generated

for self-consumption
13.33 GWh

Renewable energy

generated for sales

Dajin is currently operating a 250MW onshore wind farm in Fuxin and building a 250MW Aquaculture-PV Complementary Project in Tangshan.They can produce 1.07 TWH green electricity annually,which is equivalent to reducing about 610,000 tons of CO2 emissions per year.