Shanghai Dazhong Public Utilities : 2022 Environmental, Social and Governance Report

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Shanghai Dazhong Public Utilities (Group) Co., Ltd. *

(A Joint-stock Company with Limited Liability Incorporated in the PRC)

(Stock Code: 1635)

2022 Environmental, Social and

Governance Report

March 30, 2023

*For identification purpose only

ABOUT THIS REPORT

Report Introduction

This report is the sixth Environmental, Social and Governance Report (hereinafter referred to as the "Report") issued by the Shanghai Dazhong Public Utilities (Group) Co, Ltd., which mainly discloses the performance in respect of, among other things, environmental protection, social contribution and corporate governance of the Company. This report was reviewed and approved by the Board of Directors which is responsible for the truthfulness and accuracy of the content.

Range of Period

This Report covers the period from January 1, 2022 to December 31, 2022. Unless otherwise specified, the data in this report covers this reporting period.

Reporting Scope

This report covers the Company's headquarters and subsidiaries actually controlled by the Company, and the disclosure scope of data is consistent with the consolidated financial statement for the same period. It will be explained if the associates are involved in this report.

Source

Information data in this report were extracted from the public data of government departments, official documents and public disclosures of the Company. Financial data in this report were extracted from the audited annual report, whilst other data came from internal data of the Company.

Basis of Preparation

The Report has been prepared mainly pursuant to Social Responsibility of The Guidelines No. 1 for the Application of Self-Regulatory Rules for Listed Companies on the Shanghai Stock Exchange-Standardized Operation, Environmental, Social and Governance Reporting Guideline to the Main Board Listing Rules of The Stock Exchange of Hong Kong Limited. This Report is also prepared by referring to the GRI Sustainability Reporting Standards (GRI Standards) issued by Global Reporting Initiative and International Standardization Organization ISO 26000, international standards of 2010 Guidelines for Social Responsibility and other frameworks related to the domestic and overseas ESG, sustainable development and social responsibility.

Explanation

Unless otherwise specified, all financial data stated in this report are denominated in Renminbi (RMB). This report is prepared in Chinese and English, respectively, and the English version shall prevail if any ambiguities arise from the understanding of the Chinese and English texts.

Appellation Expression

For the convenience of expression and reading, the appellation of this report refers to as follows:

Company Name	Abbreviation
Shanghai Dazhong Public Utilities (Group) Co., Ltd.	"Company", "Group", "Dazhong Public
Utilities"
Shanghai Dazhong Jiading Sewage Treatment Co., Ltd.	Dazhong Jiading Sewage
Jiangsu Dazhong Water Group Co., Ltd.	Jiangsu Dazhong
Shanghai Dazhong Run Logistics Shares Co., Ltd.	Dazhong Logistics
Dazhong Transportation (Group) Co., Ltd.	Dazhong Transportation
Dazhong Car Leasing Co., Ltd.	Dazhong Car Leasing
Shanghai Dazhong Gas Co., Ltd.	Shanghai Dazhong Gas
Nantong Dazhong Gas Co., Ltd.	Nantong Dazhong Gas
Shanghai Dazhong Financial Leasing Co., Ltd.	Dazhong Financial Leasing
Shanghai Dazhong Transportation Commerce Co., Ltd.	Dazhong Commerce
Shenzhen Capital Group Co., Ltd.	Shenzhen Capital Group
Shanghai Seari Intelligent System Co.,Ltd.	SEISYS

Reporting Principles

This report has applied four principles of Social and Governance Reporting Guideline to the Main Board Listing Rules of the Stock Exchange of Hong Kong Limited.

Materiality:	To conduct material topics assessment in determining the disclosures of this report and the
degree of detail of each topic.
Quantitative:	The report discloses quantitative data in both environmental and social areas to display
performance indicators.
Balance:	All data disclosed in this Report were collected from the internal management documents,
statistics and publicly disclosed information, as well as public media reports, without improper
modification.
Consistency:	Unless otherwise specified, the information collection and statistical methodologies used in this
Report are consistent with those in previous years

Access to This Report

The report is published in electronic format and can be obtained from the official websites of the Shanghai Stock Exchange and the Stock Exchange of Hong Kong and the Company's website (https://www.dzug.cn/)

Feedback

In order to continuously improve the ESG management level, strengthen the quality of ESG information disclosure, and promote the practice in the concept of ESG development, we ask for advices from readers for this report (see appendix II "feedback form"). In case of any questions and feedback on this Report or the Group's ESG matters, you are welcome to contact us through the following channels:

Address:	8/F, Dazhong Building, 1515 Zhongshan West Road, Shanghai
Phone:	021-64280679
Fax:	021-64288727
Email:	[e-mail]

CHAIRMAN'S STATEMENT

Pursuing green and low-carbon development with adherence to corporate social responsibilities

Change occurs from year to year as usual and all things change from old to new. 2022 is the year of the 20th National Congress of the Communist Party of China and the first year of marching towards the second centennial goal of China. In the face of uncertainties brought by the impact of the COVID-19 epidemic and the complex and volatile domestic and international situation, the Company continues to adhere to the development strategy of "simultaneous development of public utility and financial investment", and implements the "14th Five Year Plan" strategic development plan. The Company strives for progress while maintaining stability, coordinates epidemic prevention and control with business development, and continues to promote the healthy and steady progress of various business operations.

To actively promote the ESG construction and raise brand image

In order to reply to the national "double carbon" goal, the Company follows the development trend of the capital market and takes ESG management as the guide for the Company's reform, innovation, transformation and upgrading strategic support and implementation measures to enhance the capability of self-sustainable development, The Company has released the Environmental, Social and Governance Report to the public for six years, showing the highlights of ESG practice and performance systematically. At the same time, ESG elements have been applied into the daily management process of the Company to further strengthen the social responsibility and corporate image of the Company.

Low-carbon development to promote harmony between enterprise and environment

The Company fully responds to the national strategic plan for the green and low-carbon transformation of the economy and society, actively explores green development paths, establishes and improves the environmental management system, optimizes the transmission and distribution services of the natural gas sector to bring clean energy to end customers, gradually increases the renewal of new energy vehicles in the fields of urban transportation and logistics transportation, optimizes energy structure, improves energy use efficiency, continuously expands the environmental municipal industry to absorb all kinds of surrounding wastewater, insists on paying equal attention to environmental protection and high-quality development, and actively promotes the construction of a green and low-carbon manufacturing enterprise.

Improving corporate governance for high-quality development

Under the guidance of the "14th Five Year Plan" strategic development plan, the Company has well defined the strategic positioning and direction, complied with laws and regulations such as Company Law of PRC, the Securities Law of PRC, the Code of Corporate Governance for Listed Companies and Articles of Association. It continues to improve the corporate governance structure, implement the internal control system, promote standardized, procedure-based and scientific management of the Company, improve the level of corporate operation and governance, and protect the rights and interests of investors