ESG Governance Structure Leads the "Double Carbon" Goal - Capital Environmental Protection Group Held the 2023 Annual Results Briefing and ESG Report Conference

"Combined with the business development direction and industry development trend, the company has prudently formulated the 'dual carbon' goal, and it is expected that carbon dioxide emissions will peak in 2029. Li Fujing, director and general manager of Capital Environmental Protection Group, said at the 2023 annual results briefing and ESG report press conference held recently. The "2023 Environmental, Social and Governance (ESG) Report" was also released at the meeting, focusing on the company's work achievements in promoting the realization of the "dual carbon" goal.

How to achieve the company's carbon peak goal and how to carry out the "double carbon" work in depth?

Improve the ESG governance structure, find out the "carbon background", and release the carbon peak target 

Since 2017, Capital Environmental Protection Group has released its social responsibility report for seven consecutive years, and this is also the third ESG report.

It shows that in 2023, Capital Environmental Protection Group will continue to make efforts in ESG and continuously improve its rating in the capital market, with the FTSE Russell rating upgraded from 2.5 to 3.0 and MSCI's rating upgraded from CCC to B.

Li Fujing said that in 2023, the company will improve its ESG governance structure and policy system, rename the Strategic Development Committee as the Strategy and Sustainable Development Committee, and form an ESG governance structure with the board of directors as the leadership, the Strategy and Sustainable Development Committee responsible for the supervision and guidance of ESG-related matters, and the ESG working group as the executive agency, providing guidance and direction for the company to implement its strategic development plan.

With the top-level design, Capital Environmental Protection Group has figured out the "carbon background". In 2023, Capital Environmental Protection Group conducted a carbon inventory of the whole industry for the third time, emitting 2.798 million tons of carbon dioxide equivalent, reducing 1.2147 million tons of carbon dioxide equivalent through clean energy grid-connected projects, a year-on-year increase of 15.80%, and providing 2.162 billion kWh of clean energy on-grid electricity, a year-on-year increase of 16.86%, replacing 643,600 tons of standard coal.

On this basis, the goal of "CO2 emissions expected to peak by 2029" was proposed. Li Fujing said that in order to achieve the "double carbon" goal, Capital Environmental Protection Group has formulated three practical paths: technological innovation, energy transformation, and carbon asset trading.

In terms of technological innovation and energy regeneration, we will break through technical barriers, promote the development of low-carbon technologies, and reduce our own carbon emissions.

In terms of energy transition, we will increase the proportion of renewable energy, carry out effective recycling of energy and resources, and accelerate the development of resource utilization and green energy transformation in the environmental industry. The reporter learned that Capital Environmental Protection Group released the "Blue Water Factory" in 2022 to achieve "carbon neutrality" in the field of sewage treatment through the dual cycle of resources and energy.

In terms of carbon asset trading, Beijing Capital Environmental Protection Group continues to explore the development of carbon assets, and in 2023, it successfully promoted the registration of the Xinxiang domestic waste incineration power generation project in Henan Province as one of the first VCS projects in the world (internationally certified voluntary emission reduction approval), which is expected to reduce carbon dioxide emissions by more than 160,000 tons per year and generate millions of yuan in carbon emission reduction benefits.

Innovation and development have accelerated breakthroughs, and operating performance has grown steadily

At the 2023 annual performance briefing held at the same time, the reporter learned that in 2023, the quality and efficiency of Capital Environmental Protection Operations will continue to be optimized, the incremental structure will be gradually optimized, the asset quality will be significantly improved, the innovation and development will accelerate breakthroughs, and the operating performance will grow steadily.

In 2023, the comparable operating income of Capital Environmental Protection will be 21.3 billion yuan, a year-on-year increase of 5.42%, and the net profit deducted from non-attributable to the parent company will be 1.548 billion yuan, a year-on-year increase of 44.83%. operating cash flow was 3.422 billion yuan, an increase of 399 million yuan, an increase of 13.20%.

In order to adapt to the new changes and trends in the development of the industry, Capital Environmental Protection highlights its operational advantages and continues to make efforts in the water and solid waste sectors. According to reports, in the operation business of Capital Environmental Protection Assets, the operating income of water treatment and solid waste accounted for more than 90% of the operating income of the operating business, and the core position of water affairs and solid waste operation continued to be stable, and the improvement of quality and efficiency of the stock business was an important foundation for the steady and sustainable development of Capital Environmental Protection.

In the water supply business segment, Capital Environmental Protection actively replicated and promoted the "CWCI" system, gave full play to the platform advantages of operation big data, and took multiple measures to promote the continuous improvement of operation quality and efficiency. In 2023, Capital Environmental Protection will sell 1.445 billion tons of water, an increase of 5.51% year-on-year, and the utilization rate of water supply capacity will increase by 0.13 percentage points year-on-year.

In the sewage business sector, we will carry out technical standardization work, promote the timely transfer of projects, and pay close attention to the core indicators of variable cost per ton of water, so as to promote the "volume and price" of sewage business. In 2023, the settlement of sewage water volume will be 2.995 billion tons, an increase of 0.05% year-on-year, and the comprehensive water price will be 1.75 yuan/ton, an increase of 5.49% year-on-year. At the same time, the capacity utilization rate per ton of water and the consumption of water per ton of water in the sewage treatment business remained stable, the cost of medicine per ton of water decreased steadily, and the cost control per ton of water continued to be strengthened.

In the solid waste business segment, Capital Environmental Protection has continuously accelerated the pace of project conversion to commercial operation, formed an incremental expansion matrix by tackling front-line operational technical difficulties, and promoted the overall improvement of business quality and efficiency. In 2023, the on-grid electricity of waste incineration will be 2.280 billion kWh, a year-on-year increase of 14.5%, and the on-grid electricity per ton of incoming waste will increase by 2.51% year-on-year.

"Focusing on new quality productivity, the company has opened up the whole process of different types of scientific and technological innovation projects from conceptual design to product transformation to market value acquisition, and at the same time further improved the scientific and technological innovation talent management system and accelerated the gathering of talents. Li Fujing said that by the end of 2023, 84 environmental protection research projects have been pioneered, and many technical products such as ASMART sewage plant model intelligent control system, WEAM, constructed wetland, and direct drinking water have won market recognition.