Shanghai Electric (SEHK: 02727, SSE: 601727), the world's leading manufacturer 
and supplier of power generation and industrial equipment, has released its 
2020 Corporate Social Responsibility Report ("the Report"). The Report, the 
12th CSR report and the 5th ESG report of Shanghai Electric, details the data 
disclosed from Shanghai Electric's headquarters, internal institutions, 
branches, wholly-owned subsidiaries and holding companies.

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.

Source: Shanghai Electric