The Report demonstrates the group’s commitment to corporate governance and product performance, with a focus on the MSCI Environmental, Social, and Corporate Governance (ESG) rating and the Hang Seng Corporate Sustainability Index. It highlights Shanghai Electric’s outstanding performance to date in smart energy, intelligent manufacturing and intelligent cities, as well as its journey to transform several major areas of its business using innovative intelligent technologies. The Report also outlines key efforts made by Shanghai Electric in the fight against COVID-19.
“2020 presented a complex landscape for development, particularly in light of the monumental impact of the pandemic. Faced with this challenging environment, Shanghai Electric has remained committed to our mission to champion green, smart, interconnected and comprehensive solutions. As one of the world’s leading power equipment manufacturing companies, we continue to seek new ways to fulfil our responsibility to our shareholders, customers, partners, employees, the environment and the broader community,” said Zheng Jianhua, Chairman of the Board and Chief Executive Officer of Shanghai Electric Group.
Corporate governance: A comprehensive ESG governance system that integrates sustainability into Shanghai Electric’s long-term strategic goals
Shanghai Electric has established a special ESG governance structure to ensure sustainable development is embedded into the group’s strategic layout. The top-down structure consists of the board of directors, ESG management committee including an ESG expert committee, and an ESG task force containing the board of directors and three sub-groups.
Product development: combining intelligence and innovation
Relying on its advantages in the equipment manufacturing industry, Shanghai Electric has strived to build an “industrial triangle ecosystem” comprised of smart equipment, the industrial Internet, and intelligent supply chains. Internally, the company has leveraged digital transformation to support the development of intelligent manufacturing, smart energy, and intelligent transportation; while its external empowerment programs support the development of a comprehensive and multi-dimensional smart city.
On the innovation front, Shanghai Electric shifted its focus towards high-tech industrialization and strategic emerging industries. The company continued to support technology research and product development in key areas, and actively explored and cultivated new industries and technologies. During the reporting period, Shanghai Electric had committed RMB 4.75 billion to R&D, which was an increase of 8.55% year-on-year and accounted for 3.47% of annual total operating income.
Environmental responsibility: conserving energy, enhancing efficiency, and reducing emissions
Over the years, Shanghai Electric has adhered to its belief that environmental conservation is pivotal to sustainable development, and the company has included environmental considerations at every link within its industrial chain. The Report demonstrates that Shanghai Electric is continually exploring eco-friendly operating models for green management, energy conservation, efficiency enhancement and emissions reduction.
The company has actively promoted the development of high-efficiency energy-saving projects, including: the Shanghai Electric Golmud Meiman Minhang 32MW/64MWh energy storage station; the world’s first 1000MW ultra-supercritical steam turbine, which saves over 200,000 tons of standard coal every year; and Unit 5 and 6 (2×1240MW) in the Guangdong Huaxia Yangxi Power Plant Phase II Project, of which Unit 5’s heat consumption has already been reduced by 1.65% underrated working conditions.
Shanghai Electric has also completed the application and registration of pollutant discharge permits for 107 companies, leveraged these permits to strengthen compliance, and partnered with government departments to implement green production audits for six enterprises. In 2020, the group conducted a thorough emissions investigation in 86 production enterprises, six industrial plants and five plots, from which a number of opportunities and guidelines for improvement were proposed.
Social responsibility: providing assistance during the COVID-19 pandemic
In the wake of the pandemic, a number of critical cases surfaced both outside and within Shanghai Electric — strengthening the company’s resolve to do its part in the battle against COVID-19.
In Pakistan where Shanghai Electric recently completed its Thar Coal Block-1 2x660MW Power Plant Project, the Thar Coal Block-1 Power Generation Company donated supplies to the Pakistani military on behalf of the Group. The company also donated 6 million rupees to the site of the project and dispatched additional staff to Pakistan to accelerate progress.
Shanghai Electric also spontaneously mobilized its party members and bodies to donate RMB 8.8 million to support the fight against the pandemic. Furthermore, the company shipped over 300 mask machines across the country, accelerated the development of automated mask production lines — of which more than 621 were dispatched nationwide — and donated more than 100,000 masks and personal protective equipment to overseas partners.
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