(Hong Kong, 25 November 2024 ) China Risun Group (Stock code 1907.HK, “China Risun” or “the Group”) announced that, on November 25, 2024, the Group won the “ESG100 Outstanding Value Award for Green Development” hosted by The Greater Bay Area Listed Companies Association, which underscores China Risun’s unwavering commitment to ESG practices.
The first Greater Bay Area Listed Companies Summit was held in Hong Kong. Themed “Based in Hong Kong, Connecting the Bay Area, Reaching the World”. Keynote speakers included Hong Kong Financial Secretary Paul Chan Mo-po and Deputy Director of the Liaison Office of the Central People’s Government in Hong Kong, Qibin. Over 300 representatives from listed companies, pre-IPO companies, specialized and innovative enterprises, government agencies, financial institutions, family offices, and research institutions attended, discussing the sustainable economic development of the Greater Bay Area.
This year marks the 20th anniversary of the United Nations Global Compact’s ESG principles and the 5th anniversary of China Risun Group’s listing. Since its IPO on March 15, 2019, Risun’s sustainable development efforts have accelerated, with improved performance and market recognition in the capital markets.
Comprehensive ESG Governance Framework
To comprehensively and accurately implement ESG initiatives, Risun Group has established a three-layer governance structure involving decision-making by the Board of Directors and Sustainable Development Committee, management by the Sustainable Development Office and various functional departments, and execution by subsidiaries. The group has also established specialized institutes for hydrogen energy, environmental protection, and dual carbon studies to deepen research in green and low-carbon development, effectively integrating climate risk management into daily operations.
Environmental Dimension
China Risun Group focuses on four key areas of low-carbon development: green operations throughout the lifecycle, green and low-carbon transformation upgrades, carbon capture/utilization/storage, and low-carbon operational management. The group has earned national accolades such as National Green Park, National Green Factory, National Green Supply Chain Management Demonstration Enterprise, and National Energy Efficiency Leader in the coking and methanol industries, among others. As of December 31, 2023, Risun had invested 8.957 billion yuan in environmental protection, completed 150 key environmental projects, and obtained 81 environmental patents. Over the past five years, the group has reduced carbon dioxide emissions by 16.1 million tons, decreasing the carbon emissions per ton of coke by approximately 30% compared to 2019, significantly surpassing industry standards. Emissions of pollutants such as VOCs, nitrogen oxides, and sulfur oxides have achieved ultra-low levels, and the energy consumption of coking units is 101.88 kg standard coal/ton, 27% lower than the industry entry threshold and 7% lower than industry-leading levels. Additionally, through waste heat and pressure recovery, annual power generation exceeds 2 billion kWh, with a self-generation ratio of 60%, effectively reducing carbon emissions and production costs.
ESG principles permeate Risun’s business decision-making processes and are key considerations in market expansion and product and business innovation. Hydrogen energy has become a strategic choice for accelerating energy transformation and fostering new economic growth globally, and China views the hydrogen industry as a vital component of its future energy system.
Pioneering in Hydrogen Energy
Early in its listing, Risun began developing its hydrogen energy business, planning high-purity hydrogen production lines. Within a year, it became one of the first companies to be included in the “Hebei Province 2020 Hydrogen Industry Key Projects List,” commissioning the first high-purity hydrogen production unit. Leveraging its six core advantages—hydrogen resources, cost, location, quality, process, and low carbon—Risun released its “Hydrogen Energy Development Plan” in 2021. By 2022, it had established its hydrogen energy market entity and organizational structure, accelerating the development of its full “production-storage-transportation-refueling-usage+research” hydrogen industry chain. Currently, Risun operates the largest high-purity hydrogen production base in the Beijing-Tianjin-Hebei region, with a total production capacity of 24 tons/day across four high-purity hydrogen lines and three hydrogen refueling stations (including one comprehensive energy station with hydrogen, electricity, oil, and gas). In 2023, hydrogen sales reached 9.3 million standard cubic meters, achieving 122% of the annual target and reducing greenhouse gas emissions by 9,700 tons.
In September, Risun entered a strategic partnership with the Beijing Aerospace Testing Technology Institute of the China Aerospace Science and Technology Corporation, marking a significant milestone in large-scale hydrogen liquefaction technology. China’s first 5-ton/day hydrogen liquefaction system has been installed at Risun Group’s Dingzhou Park, where the two parties are jointly building a liquid hydrogen plant and demonstration project.
Future Developments
Risun plans to establish four hydrogen supply bases in Dingzhou, Xingtai, Tangshan, and Hohhot to ensure continuous growth in hydrogen sales. Following the principle of “expanding the market with by-product hydrogen and gradually replacing it with green hydrogen,” the group will phase in green hydrogen projects, aiming to achieve a production capacity of 5,000 tons/year. Additionally, by leveraging its chemical segment, Risun will produce green methanol and green ammonia.
Social Dimension
China Risun Group remains committed to its mission, prioritizing employee rights and continuously giving back to society. In 2023, the employee structure was further optimized, with the number of employees holding postgraduate degrees rising to 336, and 100% employee training coverage. Risun also donated and provided 22 million yuan in external assistance.
Currently, Risun employs 7,601 people, with a 100% rate of signed labor contracts, employee training coverage, and occupational disease screening. Eleven of the group’s production units are ISO14001 certified, with 100% certification coverage. The company conducted 60 environmental education and training sessions throughout the year, totaling 8,414 training participants, underscoring its commitment to people-centric organizational development and social responsibility.
Corporate Governance Dimension
Strong corporate governance is essential for sustainable development. Risun Group adheres to the “Company Law of the People's Republic of China” and the “Listing Rules of the Stock Exchange of Hong Kong Limited,” continuously optimizing its governance structure in line with the company’s development. Risun aims to ensure the statutory, transparent, coordinated, and effectively balanced operation of its corporate governance institutions, including the general meeting of shareholders, the board of directors and its committees, senior management, and functional departments, thereby achieving higher levels of management and accountability.
Effective communication with shareholders is crucial for enhancing investor relations and understanding the group’s business and strategies. Risun values shareholder opinions and suggestions, actively organizing investor relations activities to maintain communication and meet reasonable demands promptly. The company believes that robust investor relations contribute to a stable shareholder base. Therefore, since its listing, Risun has maintained a high level of transparency, complied with listing rules, and provided investors with comprehensive and accurate information, fulfilling its disclosure obligations. To strengthen communication with investors, Risun hosts roadshows, participates in investor summits, and voluntarily discloses information to keep investors informed about the company’s strategies and operations.
Board Diversity and Sustainability
Board diversity enhances effectiveness and promotes long-term development while safeguarding shareholder interests. This year, Risun appointed a female director, further diversifying the board’s composition. Additionally, Risun established a Sustainable Development Committee to assist the board in managing sustainability and ESG matters, providing guidance on development and implementation, improving strategic alignment, strengthening risk management, and addressing ESG-related challenges. These efforts contribute to sustainable growth and long-term value creation.
Risun’s proactive ESG practices, outstanding green transition achievements, and strong sense of social responsibility have earned widespread recognition. In 2023, Risun and its subsidiaries received 46 environmental awards and honors from local government agencies and associations. In green finance, Risun has actively explored sustainable financing forms, successfully issuing several sustainable development-linked structured loans. In 2023, Risun received $700 million in approved sustainable development credit. Furthermore, at the “Hong Kong Green and Sustainable Finance Awards” hosted by the Hong Kong Quality Assurance Agency on November 30, 2023, Risun was once again recognized as an outstanding issuer of green and sustainable loans.
