山东高速:山东高速股份有限公司2022年环境、社会及治理（ESG）报告（英文版）

01 Shandong Hi-speed Company Limited 2022 Environmental Social and Governance Report 02
About the Report
The report truly reflects the efforts of Shandong Hi-speed Company Limited. to fulfil its economic social and
environmental responsibilities for achieving comprehensive coordinated and sustainable development. The
forward-looking statements including the business plan and development strategy involved in the report do not
constitute the Company's substantive commitment to investors.Period Covered Basis of Preparation
The time period of the report is from January 1 to December 31 2022 and some contents are beyond what This report is prepared in accordance with the Notice on Strengthening Listed Companies' Assumption
is mentioned above. of Social Responsibility and the Guidelines on Listed Companies' Environmental Information Disclosure
issued by the Shanghai Stock Exchange (SSE) and with appropriate reference to standards such as the
Chinese Corporate Social Responsibility Report Preparation Guide by the Chinese Academy of Social
Sciences. Meanwhile with reference to the Global Reporting Initiative’s Standards (the “GRI Standards”)
Boundary the information cited in the report's GRI Index Template is reported covering a period from January 1 2022
to December 31 2022.The report covers Shandong Hi-speed Company Limited and its subsidiaries.Description
Shandong Hi-speed Company Limited is referred to as “Shandong Hi-speed” “the Company” or “we” in the
Sources of Data report for easier description and reading.All the information and data are taken from the formal papers statistical reports and financial reports of the
departments and units of Shandong Hi-speed Company Limited as well as the environmental social and Access
governance information collected and audited by the Company. The report is issued in both Chinese and
English. In case of any inconsistency the Chinese version shall prevail. The unit of currency is RMB unless The report is available on the website of Shandong Hi-speed Company Limited (www.sdecl.com.cn) and the
otherwise stated. website of Shanghai Stock Exchange (http://www.sse.com.cn).05 Shandong Hi-speed Company Limited 2022 Environmental Social and Governance Report 06
Chairman's Statement
The 20th National Congress of the Communist Party of China was hosted in the year Put employees first and grow together with them. At Shandong Hi-speed we are
2022 marking a pivotal moment in the implementation of the 14th Five-Year Plan and committed to fostering common growth and development with our employees. We
the new journey to build China into a modern socialist country. Shandong Hi-speed offer diversified training programs improve the salary incentive system and support
guided by its corporate mission of "Enriching Employees Strengthening the Company employees' personal development. We place a premium on the physical and mental well-
and Giving Back to Society" places a strong emphasis on growth quality effectiveness being of our employees and strive to create a work environment that promotes both
and efficiency in its development. Throughout the past year we remained steadfast in employee welfare and company growth.our commitment to our core values and earnestly fulfilled our environmental social and
governance responsibilities. Our efforts have been widely recognized and appreciated by Respond to the call for rural revitalization and actively participate in social welfare
society leaving a lasting legacy of our corporate social responsibility. activities. As a state-owned enterprise we take our responsibility to society seriously and
are dedicated to contributing to the national strategy and building a better countryside
Safeguard the bottom line of safety in development and build safe roads. Ensuring through our actions. In 2022 we actively participated in social welfare activities with
safety is of the utmost importance. In 2022 Shandong Hi-speed continued its efforts to a total investment of RMB 808200 in supporting rural revitalization and charitable
strengthen road maintenance and operations incorporate digital technologies to drive donations of RMB 1 million to support social harmony and development.innovation in road construction and ensure safe and smooth traffic flow. By the end of
2022 our PQI (pavement quality index) had reached 95.35 and the proportion of Type I Press ahead with the spirits of enterprise and unwavering perseverance. In 2023
and Type II bridges had exceeded 99.9%. Shandong Hi-speed will deepen our understanding and implementation of the spirit of the
20th National Congress of the Communist Party of China and stay aggressive to seize
Pursue the green development philosophy and green and low-carbon development. new opportunities to grow forge ahead break new ground and make bigger strides in
We have made significant progress towards achieving green circular and low-carbon speeding up our high-quality development. We will build consensus on development
development through our efforts to create green high-speed projects enforce the strictest in the context of reform and development in the new era and contribute our "Hi-speed
standards for protection minimize environmental harm and ensure strong maintenance Power" to building China into a transportation powerhouse!
practices. We have also been actively promoting green maintenance technology
strengthening resource conservation and pollution prevention and improving resource
utilization efficiency. We actively promoted green office and took practical actions to
advance low-carbon development. Chairman
March 202307 Shandong Hi-speed Company Limited 2022 Environmental Social and Governance Report 08
Honors and Awards
April 2022 April 2022
Governing Unit of the China "Golden Round Table Award"
Association for Public for Special Contributions to
Companies (Third Session) Corporate Governance of
Board of Directors of China's
Listed Companies
Awarded by: Awarded by:
China Association for Directors & Boards Magazine
As of December 31 2022 Public Companies
The registered capital of RMB
June 2022 June 2022
4.827 Certificate of Rich Certificate of Sincere billion Rewards List Rewards List
About Us Total mileage of roads and Awarded by: Awarded by: bridges operated and managed China Association for Public China Association for Public
by Shandong Hi-speed Companies Companies
Company Profile 2887
Shandong Hi-speed Company Limited established on November November 2022 December 2022
16 1999 was sponsored by Shandong Hi-speed Group Co. Ltd. First Prize of Innovation The 6th China IR
and China Merchants Expressway Network & Technology Holdings Achievements of Enterprise "Best ESG Award"
Co. Ltd. (formerly known as China Merchants Huajian Highway Management Modernization
Investment Co. Ltd.). The Company is owned by Shandong Total mileage of self-owned in Shandong Province
Hi-speed Group Co. Ltd. and was listed on the Shanghai road and bridge assets
Stock Exchange on March 18 2002 with the ticker: 600350 Awarded by:
and a registered capital of RMB 4.827 billion. The Company’s Shandong Provincial Review Awarded by:
primary business activities include investment and operation of Committee of Innovation 1555 International Road transportation infrastructure as well as equity investments in Achievements of Enterprise Show Center
related industries finance environmental protection and other Management Modernization
fields in the highway industry chain and value chain.As of the date of this report the Company had operated and
managed a total of 2887 kilometers of roads and bridges including Total mileage of road and December 2022 December 2022
1555 kilometers of self-owned road and bridge assets such as bridge assets delegated by Top 100 Enterprises Top 100 Best
Jinan-Qingdao Section of G20 Qingdao-Yinchuan Expressway Shandong Hi-speed of China Management and
Dezhou-Tai'an Section of G3 Beijing-Taipei Expressway Jinan- Operation
Laiwu Section of G2 Beijing-Shanghai Expressway G42 Wuhan-
Jingzhou Expressway in Hubei G55 Jiyuan-Jincheng Expressway 1332
and two bridges namely Lijin Yellow River Bridge and Jingtai Awarded by: Awarded by:
Expressway Yellow River Bridge. Besides the Company is also China Listed Company China Listed Company
delegated to manage the road and bridge assets with the total Top 100 Forum Top 100 Forum
mileage of 1332 kilometers including S38 Zaozhuang-Linyi
Expressway and S11 Yantai-Haiyang Expressway in Shandong.09 Shandong Hi-speed Company Limited 2022 Environmental Social and Governance Report 10
Corporate Culture Core Values
Towards the Future with Hi-speed
Our Mission
We attach importance to the growth rate commit to quality improve effectiveness and ensure efficiency in development
continuously strengthen the core competitiveness with rapid response and long-term value creation promote the high-quality
transformation and development of Shandong Hi-speed and contribute to building Shandong into a strong modern socialist
The development of enterprises the progress of society the improvement of the environment province in the new era with the strength of Shandong Hi-speed.and the prosperity of the country depend on people. For expressing our gratitude to our employees
we share our achievements with them to make them wealthy both materially and spiritually At Shandong Hi-speed we believe in focusing on our core business to achieve efficient growth. We strive to act
Enriching creating opportunities for the well-development of their careers and boost their life satisfaction.employees and work and operate effectively always maintain the momentum of high-speed development create the Shandong We also thank partners and stakeholders for their cooperation in good faith and harmonious Hi-speed
strengthening the Hi-speed with our unremitting efforts and contribute to the rapid development of Shandong Province.coexistence. We always lead the industry in China and strive to become a leading company in
Company the world to fulfill the responsibilities assigned by the government serve the public and forge a
strong enterprise. At Shandong Hi-speed we advocate a broad and forward-looking vision. With a bigger picture in mind we create
Towards greater value support longer-term development make longer-term contributions and lead the healthy and
the Future sustainable development of the Company with the spirit and pursuit of pushing the boundaries of our employees.The Company provides infrastructure for passenger and freight transportation and provides fast
smooth beautiful civilized and safe roads for drivers and passengers through scientific operation Smoothness Harmony and Perseverance
and careful maintenance of roads and bridges. Besides the Company also constantly improve
charge maintenance road administration and other services to achieve scientific and efficient
Giving back to management smooth and safe road civilized and fair law enforcement orderly driving clean Faced with the changing environment and increasingly severe challenges we must strengthen the awareness of cooperation
Society and smooth environment and warm and thoughtful service for ensuring long-term stable and and synergy which means seeking external cooperation and internal synergy. We must take concrete steps to focus on
profitable returns to shareholders. development and remain steadfast in our efforts to realize people's aspiration for a better life.At Shandong Hi-speed we believe in fostering industrial synergy promoting coordination among different
Smoothness sectors supporting the growth of our employees pursuing mutually beneficial relationships with our partners
and and achieving win-win results for all. Guided by the philosophy of building a community of shared future we aim
Our Vision Harmony to build a new development ecology for Shandong Hi-speed ensuring the smoothness of roads industry and
communication and harmony in administration governance and employees.Devoted be a Century Enterprise and Building the No. 1 Brand of Expressway in China At Shandong Hi-speed we are committed to making determined efforts to achieve our goals and fulfill our
Perseverance development tasks. We also actively explore the future development path build the cornerstone of the business
with strong commitment and seek future development with the spirit of selflessness.Guided by the "Six Features of Shandong Hi-speed (i.e. Being Revolutionary Innovative High-
quality Excellent Vigorous and Culturally Active)" the Company sticks to independent innovation
focuses on its main business improves its core competence and seizes opportunities to develop its Spirit of Enterprise
main business of roads and bridges in a snowballing manner to better itself. As well the Company
Century expands its business through acquisition merger and cooperative development diversifies its "3A" spirit: Accountable Aggressive Advanced
Enterprise business to some degree and constantly searches for new profit growth sources for increasing the
development potential and making the Company be a sustainable century enterprise. We actively assume responsibilities and commitments have prudent and down-to-earth attitudes
keep honest and trustworthy. Our responsibilities include responsibilities to the public (drivers)
responsibilities to society responsibilities to shareholders and responsibilities to employees. Accountable
We never rest on our laurels instead we rebel against the status quo seize the
With strong social responsibility the Company promotes environmental protection and local opportunity and strive for the company's leap-forward development; we dare to embrace
prosperity rewards investors with continuous good performance provides customers with high- the challenge whiling remaining dauntless and optimistic in the face of difficulties. Aggressive
quality and efficient services and offers good protection and growth environment for employees
No.1 aiming to gain the respect from the public building No. 1 expressway brand in China and Advancement is the highest aspiration for the Company. We give full consideration
Brand becoming a well-deserved industry leader. to every detail and strive for keeping improving from time to time. Relying on our
rich experience and continuous betterness we can cultivate the persistent spirit of Advanced
making everything perfect.11 Shandong Hi-speed Company Limited 2022 Environmental Social and Governance Report 1213 Shandong Hi-speed Company Limited 2022 Environmental Social and Governance Report 14
Social Responsibility Management Our ESG vision
Empower the "six
features of Shandong Our ESG goal
Shandong Hi-speed as a responsible listed company has always pursed its development under the guidance Hi-speed" and become Uphold sustainable a responsible listed
of sustainability. We have established and continuously improved internal systems such as the Environmental development and company.Social and Governance (ESG) Working Plan of Shandong Hi-speed Co. Ltd. the Working Rules of the become a benchmark
Strategic Development and ESG Management Committee and the Environmental Social and Governance ESG enterprise in the Our ESG work plan
(ESG) Management Measures of Shandong Hi-speed Co. Ltd. based on our ESG commitments. We seek to industry.
achieve the strategic goal of "becoming a benchmark ESG enterprise in the industry"through unremitting efforts. Phase I (2021): Structure building unified
understanding and solid foundation
Phase II (2022): Comprehensive
enhancement systematic promotion
Shandong Hi-speed ESG commitment and regular management
Phase III (2023): Deep integration
leadership in development
Upholding the green and sustainable development philosophy responding to China's and leadership in the industry
call for energy conservation and emission reduction adopting a responsible production
and operation model actively advocating low-carbon operations promoting the use of
renewable energy ensuring the recycling of resources and harmless disposal of waste
protecting the biodiversity of the operation sites enhancing the Company's ability to ESG governance structure of Shandong Hi-speed and the functions of each department
Environment address climate change reducing the impact on the environment and contributing to
China's efforts to achieve the goal of "peaking carbon emissions by 2030 and achieving
carbon neutrality by 2060". Board of * Establish ESG-related systems and targets of the Company
Directors * Review important ESG-related matters of the Company and confirm the completion of ESG work
Putting customer service first and continuously exploring smart highways and smart
services.Strictly abiding by relevant laws regulations and industry norms and codes and * Study the reasonableness of the Company's ESG-related policies and targets and make
Strategic
protecting personal privacy. recommendationsDevelopment * Review important ESG-related matters of the Company and submit them to the board of directors for
Respecting and protecting the rights and interests of employees and creating a fair and ESG consideration
and just working environment. Management
Committee * Supervise the research analysis identification assessment and response of ESG-related risks and
Society Creating transparent supply chains with the principle of openness fairness impartiality matters of the Company
honesty and integrity.Enthusiastically egaging in public welfare activities and serving society with care Working Group
enthusiasm and responsibility. of Strategic * Establish ESG-related management mechanisms identify ESG-related risks and evaluate the level
Development and of such risks on a regular basis
ESG Management * Coordinate and manage external ESG disclosure including tracking the completion of ESG targets
Abiding by the laws regulations and governance guidelines designed for listed Committee and preparation of ESG reports.companies continuously improving the integrity and compliance of our corporate
governance system via sound risk management and internal control processes
strengthening ESG governance management improving ESG risk management and * Responsible for daily ESG-related work and implementation
establishing and improving partnerships with various stakeholders. * Integrate ESG targets into the annual ESG work plan of corresponding departments and
ESG Working subsidiaries
Governance Focusing on the impact of business ethics on stakeholders such as the Company Group * Cooperate with the Working Group of Strategic Development and ESG Management Committee to
shareholders customers employees partners and the community and environment conduct external ESG disclosure
requiring employees to strictly comply with the requirements of laws and regulations
and regulating their daily activities and behavior. The Company continues to advance the use of information technology in its ESG practices and establish an ESG performance
management system with quantitative information as the core. This is achieved through strengthening its information
In 2022 the Company built an ESG governance structure led by the board of directors supervised by the management and improving its employee performance appraisal to regularize the management of ESG issues and related
Strategic Development and ESG Management Committee managed by the Working Group of Strategic risks. Meanwhile we attach great importance to inter-industry cooperation in ESG management and actively participate in ESG-
Development and ESG Management Committee and executed by the ESG Working Group to provide an related training sessions organized by third-party authoritative institutions such as the SSE and the China Association for Public
institutional guarantee for conducting ESG-related work in a compliant science-based and efficient manner. Companies. These efforts serve to enhance our internal ESG governance and competitiveness as well as improve our external
communication mechanisms.15 Shandong Hi-speed Company Limited 2022 Environmental Social and Governance Report 16
Stakeholder Engagement
The trust and support of stakeholders are the foundation for the sustainable
development of Shandong Hi-speed. We utilize a diverse range of communication
mechanisms and a thorough process for screening and assessing material issues.This allows us to continuously optimize our internal strategies and collaborate with
stakeholders in our pursuit of sustainable development.Stakeholder communication
The Company focuses on listening and responding to the expectations and
demands of stakeholders via different channels. Our priority is to protect their
legitimate rights and interests maintain close ties with them and achieve win-win
development for all.Stakeholder Expectations and requirements Means of communication Stakeholder Expectations and requirements Means of communication
* Q uality of service
* I mplementation of national policies laws and * S afe travel * B usiness communication
regulations * P erformance of the contract according to law * U ser feedback
* P romotion of local economic development * R eporting documents Customers and
Partners * H onest management * E xchange and discussion
* C reation of more local jobs * S uggestions and advice * H igh-quality products and services
Government and * D riving the development of the industry * S pecial report
Regulators * C ompliance emission * N egotiation and cooperation
* E nergy-saving and emission reduction * I nformation disclosure * G reen purchasing * S upplier assessment
* E cological protection * C ompliance management
Supplier * T he phone call and mail* P roduct liability
* C ompany’s announcement
* C ompliance emission* R evenue and return * S pecial report
Shareholders and * * T he general meeting of *
E nergy-saving and emission reduction
Compliance operation shareholders * P ress conference and forumInvestors * E cological protection
* R oadshow and counter roadshow * S ocial media* P romotion of local economic development
Media and NGOs * O fficial website * C reation of more local jobs
* D riving the development of the industry
* P rotection of rights and interests * E mployee forum
* W ork Safety * F ace-to-face communication
* O ccupational health * S ocial media * I mprovement of the community environment * O fficial website
Employee * S alary and benefits * W orkers' Congress * P articipation in public welfare * C ommunity interaction and public
* C areer development * Q uestionnaire welfare activities
Community and * O pen and transparent information * S ocial media
the Public17 Shandong Hi-speed Company Limited 2022 Environmental Social and Governance Report 18
In 2022 Shandong Hi-speed identified and screened a total of 25 material issues and determined the Company's materiality
matrix in the year based on the results of peer benchmarking in the industry analysis and suggestions from internal and external
experts and multimedia information.Shandong Hi-speed's materiality matrix in 2022
Emission of pollutant
Quality of road service
Response to climate change
Road safety
Standard and control of road noise
Employee compensation and benefits
Employee training and development
Work safety and occupational health
Water utilization
Anti-corruption
Energy conservation
Employment and labor standards
Public welfare in the community Rational use of land
Supply chain management Impact on biodiversity
Material issues Consumer privacy protection
Shandong Hi-speed's procedures for screening ESG issues
We continuously screen assess and disclose
material issues identifying and screening envi-
ronmental social and governance issues relat-
ed to Shandong Hi-speed from all perspectives. * Suggestions from the Importance to the Company’s sustainable development
We gather information through various sources Company's management
including suggestions from the Company's * Analysis and suggestions
management research on peer benchmarking by internal and external Shandong Hi-speed's material issues in 2022
at home and abroad multimedia information specialists Source of
analysis and on-site investigation to under- * Multimedia information
stand the level of concern among stakeholders analysis Issues Importance Issues Importance Issues
for each issue and ultimately determine the * Research on peer
material issues. benchmarking Quality of road services Consumer privacy protection
* ESG related standards
and guides Road safety Climate change response
Employee compensation and Standard and control of road
Issues of high importance benefits noise
Issues of medium importance
* Contribution to sustainable
development Work safety and occupational Employee training and health development
Screening * General concerns of the
Criteria stakeholders Anti-corruption Water utilization
* ESG guides for material issues
* In line with the Company's needs Employment and labor standards Energy conservation
for strategic development
Issues of medium importance Rational use of land Community welfare
Issues of low importance
Impact on biodiversity Supply chain management
Importance to stakeholders’ sustainable development19 Shandong Hi-speed Company Limited 2022 Environmental Social and Governance Report 20
Corporate Governance Investor communication
Shandong Hi-speed continues to implement investor management and share the operational gains with investors by following
At Shandong Hi-speed we recognize the critical role that good governance plays in our long-term success. We continuously the principle of equality and fairness and the guidelines of internal policies such as the Management Policy of External
improve our corporate governance structure gradually implement internal risk identification control and response and build a Guarantee and the Management Policy of Affiliated Transactions and on the basis of safeguarding the legitimate rights and
positive business ecology for our stakeholders. interests of investors. In 2022 we reviewed and justified our investor dividend program to ensure stability and consistency. At the
same time we continued to implement innovative investor management strategies and cultivate a positive image in the capital
Governance structure market by focusing on market capitalization management and share price changes and benchmarking against peer companies.In strict accordance with the Company Law of the People's Republic of China the Securities Law of the People's Republic
of China the Code of Corporate Governance for Listed Companies in China the Rules Governing the Listing of Shanghai Innovative investor management by Shandong Hi-speed in 2022
Stock Exchange and relevant rules and regulations of China Securities Regulatory Commission Shandong Hi-speed has
established and continuously optimized a governance structure composed of the general meeting of shareholders the board
of directors the board of supervisors and the management to ensure the smooth implementation and enforcement of internal
corporate governance. Among them four special committees are put in place under the board of directors namely the Strategic
Development and ESG Management Committee the Audit Committee the Remuneration and Appraisal Committee and the
Nomination Committee to jointly deal with governance-related matters.Had an in-depth analysis of the main issues Analyzed changes in the shareholder register
Corporate governance structure of Shandong Hi-speed affecting the Company's market capitaliza- in response to share price changes and
tion summarized 12 market capitalization analyzed the factors influencing such changes
General Meeting of management strategies and identified suc- and established a strategy to reduce the
Shareholders cessful cases and then developed the Com- dependence of institutional shareholders by
pany's value management strategy in 2022. diversifying investors in 2022.Board of Supervisors
Board of Director The Company attaches great importance to communication with investors
and uses the internal policies of the Investor Relations Management Policy
and the Information Disclosure Policy to build and improve channels such
as online voting by investors online platforms and an investor hotline.This allows us to gather feedback from shareholders and investors on our
development and address their concerns in a targeted manner leading to
Strategic Development and Remuneration and
ESG Management Committee The Audit Committee Nomination CommitteeAppraisal Committee comprehensive improvement of our economic performance. In 2022 we
actively conducted door-to-door presentations mid-year strategy meetings
and roadshows and invited chief transportation analysts from authoritative
third-party institutions such as Zhejiang Securities Changjiang Securities
Secretary of the Board and Topsperity Securities to actively study and optimize our market
capitalization management strategy through research. Meanwhile we
attended the press conference of the Best Practice Case of Office of Board Shandong Hi-speed’s Roadshow Activity
General Manager of Directors of Public Companies and IR training for listed companies held
by the China Association for Public Companies in 2022 to continuously
enhance our practice.Deputy General Manager Chief Enginner
Chief Legal Advisor Chief Safety Manager Chief Auditor During the reporting period Shandong Hi-speed
communicated with
We continuously align the mode and content of our public information disclosure with the disclosure requirements of the SSE core shareholders answered calls from participated in review reports
and internal policies such as the Articles of Association the Rules of Procedure of the General Meeting of Shareholders the 40 170 18 10
12 times in total questions from online the investor hotline brokerage strategy issued by brokerage Rules of Procedure of the Board of Directors the Rules of Procedure of the Board of Supervisors and the Work Policy of platforms meetings firmsSecretary of the Board of Directors. We also continuously improve the board of directors by electing high-quality talent from
different industries and professional backgrounds as directors increasing the proportion of external directors and enhancing
corporate decision-making by incorporating a comprehensive and integrated perspective. In 2022 the Company held 14
meetings of the board of directors six meetings of the board of supervisors and five general meetings of shareholders and
considered and approved 89 issues.21 Shandong Hi-speed Company Limited 2022 Environmental Social and Governance Report 22
Shandong Hi-speed's risk identification and assessment process
Case Activity "I am a Shareholder in Shandong Hi-speed" was successfully held
Risk identification and screening
In September 2022 the activity titled "I am a Shareholder in
Shandong Hi-speed" guided by the Investor Protection Bureau * Collect relevant internal and external risk information according to the division of responsibilities regularly identify and sort
of CSRC hosted by Shanghai Stock Exchange and organized out the riskts in their own area analyze the impact of risks and propose reponse.by Shandong Hi-speed was successfully held. At the event the
Secretary of the board of directors of Shandong Hi-speed had
an in-depth exchange with investors on the Company's business
and development plan and ensured small and medium-sized Risk assessment
investors to have a systematic understanding of the Company's
development history industrial deployment operational modes * Identify and screen the preliminary information collected in risk management and assess risks according to their likelihood
and core advantages through visits to the monitoring hall and
Activity "I am a Shareholder in Shandong Hi-speed" of occurrence and the degree of impact on the goals.the Company's promotional videos.Risk prevention and control
Risk monitoring and response
Shandong Hi-speed is committed to building a science-based and compliant risk management system that is capable of effective-
ly responding to operational and management risks thus facilitating the realization of its strategic development goals. In 2022 * Formulate management plans or measures and strictly implement them in response to the risk assessment results and hire
the Company further optimized the Risk Management Measures and three other internal policies following the Comprehensive professional organizations to assist in addressing risks if necessary to avoid the repeated occurrence of similar risks.Risk Management Guidelines for Provincial Enterprises in Shandong Province and other relevant laws and regulations. These
measures have been aligned with the overall operational goals to provide all-encompassing guidance on risk management.We have established and continuously improved the risk management mechanism that emphasizes "unified leadership clear Risk management supervision and improvement
division of labor and full participation." This mechanism is headed by the Board of Directors as the highest decision-making body
and the General Manager's Office as the daily decision-making body to ensure comprehensive planning and coordination of risk
management practices. Executive agencies including frontline entities departments and offices of the headquarters and audit * Regularly conduct self-evaluation on the implementation of risk control and its results; audit departments summarize the Company's risk management work in the year based on the annual risk management development and operation and
and supervision departments leverage their respective risk prevention and control functions to proactively control risks respond propose risk management plans and requirements for the next year.to risks as they emerge and determine the department responsible for each risk and jointly establish the "three lines of defense"
in risk management."Three Lines of Defense" to define departmental responsibilities We implement the principle of "full participation and cultural immersion" in risk control continuously improving the assessment
and accountability mechanism to reflect "Those in charge take responsibilities and ensure coordination." We have established
quantifiable risk assessment score standards and risk classification and response measures and firmly buttress the risk bottom
* Have the primary responsibility for the Company' operational risks as the key to controlling risks line. Meanwhile we continuously carry out online risk management cultural promotion activities to translate risk management First Line of
Defense beforehand awareness into common understanding and active action among our employees and cultivate a culture of proactive risk control.Frontline Entities
In 2022 the Company leveraging its sophisticated risk control system continued to explore the idea of digital audit transforma-
tion promote the application of information technology in its audits improve the efficiency of tracking major projects and put risk
control into practice. During the reporting period Shandong Hi-speed completed the internal audits of various affiliated entities
Second Line of
Defense * Responsible for daily risk management in their areas through multiple approaches such as "comprehensive audit + special audit" and "online audit + on-site verification." These con-
Departments and solidated the integration of internal audits and risk prevention and control enabling us to strike a balance between pandemic
Offices of the prevention and control and audits maximizing the role of internal audits as a crucial means of corporate governance and the
Headquarters
"third line of defense" in risk management.* Guide and supervise frontline entities and the departments and offices of headquarters in risk
Third Line of
Defense identification screening and early warning study major risk response plans comprehensively evaluate
risk response results and make recommendations for improvement Case Establishment of a negative risk listAudit
Departments
Shandong Hi-speed has compiled the List of Risks and Issues Found in Audits based on a range of frequently occurring
Guided by our strategic goals we have devised a risk identification and assessment process that is in line with the Company’s and typical cases found in internal and external audits in recent years. The list covers 10 key areas such as internal
actual situation and management system. In 2022 Shandong Hi-speed has made additional improvements to its internal control investment engineering and finance and highlights 127 types of issues including sectors prone to risk
policies including the List of Risks and Issues Found in Audits and has continued to strengthen the risk prediction early exposure in the management of each business area. Meanwhile we also organized affiliated entities to conduct regular
warning prevention and dynamic monitoring of risk events with risk identification and assessment as the center. Our focus self-examinations based on this risk list extending the application of audit results deepening the "added value" of
is on reinforcing front-line defense implementing forward-looking governance and front-end control and initiating preliminary audits and leveraging audit results in various dimensions.responses in risk management to establish a secure and stable operating environment.23 Shandong Hi-speed Company Limited 2022 Environmental Social and Governance Report 24
Integrity and Compliance
In 2022 Shandong Hi-speed
The Company strictly abides by the relevant laws and regulations such as the Supervision Law of the People's Republic of
China and the Anti-Money Laundering Law of the People's Republic of China. We also established and revised internal policies
such as the Opinions on the Implementation of Establishing and Perfecting the Corruption Punishment and Prevention Policy
the Rules for Implementing Responsibility Policy for Party Conduct and the Clean and Honest Government Building the
Management Measures for Investigating and Handling Petition Letter by Discipline Inspection and Supervision Department had a total of had provided a total of provided
and the Evaluation Rules of Integrity Risk Prevention and Control Mechanism to resolutely eliminate commercial bribery
corrupt practices and other improper commercial behavior. In 2022 the Company formulated the Compliance Management 672.50 345.50 21640 818
Measures revised the internal policies such as the Management Measures of the Company's Discipline Inspection Commission hours of anti-corruption hours for senior anti-corruption education for senior
on Demanding Results of Issues and Clues (for Trial Implementation) the Guidelines for Political Supervision of the Company's education for employees management opportunities for our employees management
Discipline Inspection Commission (for Trial Implementation) the Interim Provisions for Supervision and Recording of Meddling in
Important Matters by the Management at Shandong Hi-speed. We also launched special rectification campaigns against salary
delay "the extravagance of alcohol" the improper issuance of allowances and benefits and other issues to further enhance the
quality and effectiveness of integrity supervision.Case Alerting education activity in the Second Quarter of 2022
Case Special rectification campaign against "the Extravagance of Alcohol"
In June 2022 Shandong Hi-speed carried out the
alerting education activity in the second quarter of 2022
In 2022 Shandong Hi-speed carried out a special rectification campaign and organized a total of more than 40 managers and
against "the extravagance of alcohol." The campaign focused on a series employees at headquarters to watch alerting education
of problems such as violating the prohibition of alcohol consumption films to further deepen their awareness of integrity and
using public expenses to purchase and send alcoholic beverages self-discipline and consciously maintain the public image
improperly accepting and sending alcoholic beverages improperly of the Company.participating or organizing alcoholic parties violating the prescribed A total of more than
procedures of alcoholic beverage provision and violating official
reception standards with the aim to build a "firewall" to guard against 40 managers and employees at Alerting education activity in the Second Quarter of 2022integrity risks. Notice on special rectification campaign headquarters to watch alerting education films
against "the Extravagance of Alcohol
Case Special rectification campaign against improper issuance of allowances and benefits Case Special training on prevention of work-related crimes and on party rules and discipline
In June 2022 Shandong Hi-speed organized a special
In May 2022 the Company organized a special rectification campaign
training activity on work-related crime and on party rules
against the improper issuance of allowances and benefits and carried
and discipline and invited experts from Jinan Discipline
out item-by-item analysis and rectification of the problems found in the
Inspection and Supervision Commission to explain the
process of self-examination and self-rectification. During the reporting
prevention of work-related crime and party rules and
period the Company found three problems in the process of issuing
discipline so as to continuously strengthen employees'
allowances and benefits in three affiliated entities. In response we
awareness of integrity risks.reported the party organizations of three entities and four responsible Special training on prevention of work-related crimes
and on party rules and discipline
personnel held them accountable recovered relevant allowance and Special rectification campaign meeting on
benefit expenses in time and criticized and educated relevant personnel. improper issuance of allowances and benefits Learning and testing activity of party rules regulations disciplines and laws and moral
Case integrity knowledge
Shandong Hi-speed remains committed to improving the internal complaint and reporting procedures and the whistleblower
protection mechanism. We encourage our employees and external stakeholders to report any internal wrongdoings through In December 2022 Shandong Hi-speed held a one-week activity to learn and test
a variety of channels including letters calls and visits. We strictly follow the internal rules and regulations in collecting party rules regulations disciplines laws and moral integrity knowledge for middle-
investigating and providing feedback on reported cases and take severe measures against violators. During the reporting level mangers under the management of the Party Committees of the Company. The
period the Company did not have any corruption-related litigation cases. activity is mainly based on independent learning by employees supplemented by
online after-class tests aiming to guide the majority of party members and officials
The Company also actively organizes anti-corruption culture promotion activities with integrity as a fundamental basis for
to further enhance the awareness of discipline and laws so that they "do not dare
issuing honors. In 2022 we continued to organize various training activities such as alerting education activities thematic
cannot and do not want to go corrupt." During the reporting period a total of 754
lectures moral integrity knowledge learning and testing as well as soliciting integrity-themed calligraphy essays speeches
employees were covered by the integrity knowledge test with an average score of
paintings short videos and short movies. Also we organized employees to watch alerting education themed films and talks on
over 98 among employees.integrity for middle-level management and young managers newly promoted or appointed in the past three years and under the Learning and testing activity of party
management of the Company's party committee. These activities were aimed at enhancing our employees' legal awareness and rules regulations disciplines and laws and moral integrity knowledge
fostering a culture of honesty and transparency.25 Shandong Hi-speed Company Limited 2022 Environmental Social and Governance Report 26
Party Building
The Company strictly abides by the relevant laws and regulations such as the Constitution of the Communist Party of China In 2022 we organized a special training activity with the theme of "Towards the New Journey with Perseverance and
the Guidelines on Political Life Inside Party under the New Situation and the Supervision Regulations of the Communist Party Responsibilities." The training was designed to enhance the theoretical knowledge and overall quality of our middle-level
of China and always adhere to the corporate culture featuring integrity and honesty. We innovate and implement the project managers through various forms of training including theory training and special education. Our objective was to further
of "Three Alignments" take "New Era New Highway and Go All the Way" as the foundation of our Party building brand and galvanize our team to embark on a new journey and make remarkable achievements in the new era.transform the advantages of the Party organization into a strong impetus to promote our high-quality development. During the
reporting period the Party committee of Shandong Hi-speed has 301 party organizations at the grass-root level including 32
Party committees 11 general Party branches 256 Party branches and a total of 3430 Party members. Special training activity themed "Towards the New Journey with Perseverance and Responsibilities"
"Three Alignments" project
Transportation Management Transportation Management Transportation Management
Center in Xiajin County Center on Taiqu Road， Center in cities of ZaozhuangDezhou City Taidong County Tai'an City Linyi and Heze
Align with General Secretary * S trengthen theory learning and extensively promote the Party's innovation theory
Xi's important instructions * C omprehensively align and inspect our tasks with the Party's political building and
combine learning with promote its implementation
practice and stay steadfast * F ocus on key tasks and promote the consolidation and development of the Party's
in the political direction political advantages
Align with the important
deployment of the higher-level * T ake major actions to complete major tasks
party committee carry forward * D evelop a strong organization and a strong team
our revolutionary heritage and * C arry forward the culture and tell a good story of Shandong Hi-speed Five entities in Jinan Yantai and Weihai Area Luzhou Southeast Expressway stick to the development goals Development Co. Ltd.* G ive full play to the important role of the Party Committee in "setting the direction
Align with the Company's managing the overall situation and ensuring implementation"
main tasks and goals keep
in mind our commitment and * F irmly promote the deep integration of party building and the Company's production
take firm actions to achieve and operation
our goals * C ontinue to promote the overall and strict governance of the Party to deepen
development
Case Thematic education and training activity for middle-level managers
In August 2022 Shandong Hi-speed held a theory training activity to In September the Company organized a special education
improve the comprehensive capabilities of middle-level managers. activity for middle-level managers and watched two special
Nearly 150 members attended the activity including middle-level educational films namely Have the Courage to Take Charge
managers of the headquarters and members of the leadership team and Act - Strengthening the Governing Capacity of Leaders and
of the affiliated entities. The director of the Philosophy Department of Officials in the New Era and Anti-corruption: Stick to the Iron
the CPC Shandong Provincial Party School gave an in-depth lecture Rules to learn and understand the concept connotation and
on the topic of "Stay Committed to Ideals Beliefs and Responsibility" basic requirements of taking responsibility as well as why and
focusing on the lofty ideals and firm beliefs of the CPC the close how to take responsibility to strengthen the ideals and beliefs
connection between ideals and beliefs and responsibility and Theory training among middle-level managers and jointly contribute to the Thematic education
improve internal strength to be more cultured and responsible so Company's high-quality development.as to comprehensively enhance the awareness of responsibility and
capabilities of our employees in performing their duties.27 Shandong Hi-speed Company Limited 2022 Environmental Social and Governance Report 2829 Shandong Hi-speed Company Limited 2022 Environmental Social and Governance Report 30
Road Security Road maintenance
Shandong Hi-speed places significant emphasis on precise and long-term maintenance strictly adhering to the current national
standards and specifications such as the Technical Specifications for Maintenance of Highways the Codes for Maintenance of
Shandong Hi-speed continues to strengthen its quality management focus on road operations daily maintenance emergency Highway Bridges and Culverts the Technical Specifications of Maintenance of Highway Tunnels the Technical Specifications for
rescue and other work to ensure a smooth traffic flow on the road. Maintenance of Highway Cement Concrete Pavements and the Technical Specifications for Maintenance of Highway Asphalt.We have also formulated the Management Measures for Highway Construction Projects the Management Policy for Highway
and Bridge Maintenance the Daily Highway Maintenance Rules and various other management policies. In 2022 we revised
Quality management and improved the Maintenance Management Rules the Compilation of Tunnel Management Policies and 11 other maintenance-
related policies and procedures. Such efforts aim to optimize maintenance management modes including the division of
Shandong Hi-speed always aims at high-quality development and promotes the construction of a quality management system. In responsibilities fund management technical management safety management and other aspects. We also sought to enhance
2022 we issued the Notice of Shandong Hi-speed Co. Ltd. on Recommending and Selecting the First Batch of Key Personnel our tunnel management and maintenance capabilities in line with the special activity “Tunnel Standardized Management” and
for Comprehensive Quality Management to strengthen our quality management talent pool. Meanwhile we formulated the boost our maintenance management in a standardized and science-based manner.Implementation Plan of Benchmarking against First-class Quality and Efficiency Improvement Projects formed nine items of
benchmarking improvement work list in 2022 and 2023 organized benchmarking inspection activities in line with our own actual The Company adheres to the principle of "Measures for Information Security Governance in 2022" The
situation and completed the filling of seven tasks in the work list. Company comprehensively implements the mechanized operation and work order system. Dispatching
orders are promptly issued to the maintenance contractor in response to issues identified during
In the patrol inspections. Upon completion of maintenance work the tasks are confirmed to ensure that
Quality management system certification daily road
maintenance daily maintenance is carried out in a systematic and science-based manner. This year we innovated By the end of 2022
operation the "Reviewing Maintenance Quality" activity and organized all entities to conduct a comprehensive
the Company had been certified to the ISO 9001:2015 investigation on the quality of maintenance works completed in the past five years. This initiative
quality management system identified a total of 430 problems which were rectified through the establishment of rectification
ledgers and all problems have been successfully resolved by the end of the reporting period.covering a total of
92 operating sites The Company actively builds and applies an intelligent highway maintenance management system. We carry out maintenance digitalization improvement projects based on BIM1+GIS2 to enhance the
digitization of highway assets support pavement maintenance decision-making at the project level and
In terms of
intelligent research tunnel inspection robot during the operational period. In 2022 we made significant progress
maintenance completing the construction of a digital platform for road and bridge assets in some road sections.Additionally the Application Standards on Highway Engineering Maintenance Information Models an
Case "Quality Month" activity industry standard we have applied for are under proofreading for publication. Our digital maintenance
and scientific and intelligent decision-making have been further improved.In August 2022 the Company carried out the "Quality Month" activity under the theme of "Promoting Reform and In 2022 the Company made maintenance and enhancement efforts in many places including guardrail renovation and
Innovation in Quality and Contributing to Building a Strong China with Quality Services" through purchasing quality- upgrading collision avoidance capacity enhancement refined protection facility enhancement and highway connection line
themed books organizing internal and external quality management training developing the "Quality Month" knowledge enhancement. We carried out large maintenance projects in Hubei Wujing Company the Beijing-Shanghai-Jinan transportation
contest database and strengthening promotion etc. This activity aimed to effectively improve the quality awareness management center the Linyi Transportation Management Center and Qingdao-Yinchuan Expressway and actively promoted
and management capabilities of our employees and to ensure them learn understand and apply quality knowledge for four new maintenance technologies3. As such maintenance technologies such as surfacing technology super-viscous abrasion
the purpose of contributing to the construction of "Quality Shandong Hi-speed." layer highlight marking and high viscosity modified asphalt have been widely used.During the Quality Month we organized 15 external training sessions and 7 internal training sessions for key quality
management personnel and related management personnel held 4 provincial exchanges and events and won 25 By the end of 2022 Shandong Hi-speed
first-prize 50 second-prize and 63 third-prize trustworthy team awards and 48 team awards by Shandong Provincial
Highway and Transportation Society. including more than RMB
PQI (pavement quality the proportion of Type I and the Company had invested 46 million invested in
index) had reached Type II bridges had exceeded 268 research on the four new RMB million in 95.35 99.91 maintenance technologies % maintenance throughout and maintenance quality
the year projects
1 Building Information Modeling
2 Geographic Information System
Quality training Experience exchange meeting 3 New technologies new processes new materials and intelligent maintenance of new equipment31 Shandong Hi-speed Company Limited 2022 Environmental Social and Governance Report 32
The Company actively prepares industry standards and association standards. For instance we have edited the association
Standard Guidelines on the Construction Operation and Maintenance of Highway Substations which is approved by the China
Guardrail renovation project Anti-collision upgrading project Highway and Transportation Society and released for implementation. Three association standards such as the Information
Release Specification on Highway Green Travel successfully passed the project evaluation and the local standard Technical
Requirements of Highway Travel Information Release was introduced for implementation. The influence of "Shandong Hi-speed
Standards" has steadily improved.Shandong Hi-speed continues to improve the "Road Chief System" management mechanism strengthen the emergency
protection mechanism characterized by "One Site One Policy" and "Three Parties for One Road" and optimize the operation
and scheduling system. On the basis of the Detailed Rules for the Linkage Mechanism of the Road Chief System the Company
worked with the Provincial Public Security Department to jointly draft the Working Mechanism of Rapid Response to Traffic
Accidents via Four-Party Coordination in Jinan-Qingdao Expressway to improve the efficiency of traffic accident response. The
Company created a "Road Chief System" management platform to connect different business lines including highway toll road
management travel services mechanical and electrical management. This upgrade aims to ensure connectivity of underlying
data and the whole-process incident management based on the road chief system’s "Inspection - Reporting - Tracking -
Response" framework. With these improvements we have increased the speed of discovering dispatching and processing
road abnormalities by 10.29% year-on-year in 2022 enabling us to "Timely Discover Respond to and Address Incidents" and
comprehensively improve the operation control and ensure the smooth flow of our road network.We put a premium on the protection of road property rights. We provide policy training for our employees working at road
management centers to enhance their knowledge and capabilities in road property protection. In addition we increased the
Refined protection efforts to close loopholes and crack down on violations of road property rights during the reporting period. We created a tighter
facility project network to crack down on such violations through on-site crackdowns work order collections and special investigations of
abnormal work order data. Also we organized exchange activities to improve the screening ability of our employees ensuring
the accuracy and validity of revenue data.Case "Detailed True and Firm Actions" in the protection of road property rights
On January 6 2022 Weifang West Road Management Sub-center received a call and
Road operation was told that a truck rear-end accident occurred on Weifang-Rizhao Expressway. Road
management personnel went to the scene immediately started the traffic accident
In 2022 Shandong Hi-speed comprehensively promoted the construction of a standardized road and bridge operation and emergency response plan and worked with fire departments and traffic police officers to
management system to improve road operation capabilities. quickly launch rescue work. They managed to clear the road within about three hours.Road management personnel filed litigation for road property recovery according to the
A total of 32 standardization documents were issued and 38 road and bridge operation policies were responsibility determined by traffic police to ensure that they did not let go of any "Detail" in Standardized
system introduced to create a unified road and bridge operation and management standard for hardware and software the survey process to protect the road compensation recovery "Truly" efficiently and take construction and internal and external management. "Firm" actions for the establishment of the legal team to deal with complex cases. After 11
months of efforts we successfully recovered RMB 200730 of road compensation. We successfully
The Implementation Plan on Comprehensive Promotion of Road and Bridge Operation and Management
Hardware Standardization was issued to orderly promote the nine items of standardized hardware upgrading with recovered RMB
upgrading road management service halls toll stations and other places as the focus. Hardware upgrading has been In addition Weifang West Road Management Sub-center employed the four-step method
completed in 126 sites. of "Judgment Search Visits and Comparison" to quickly handle various hit-and-run cases
through on-site judgment vehicle search and comparison and effectively safeguard the 200730of road compensation
Obstacle The obstacle clearing and rescue management system was improved. The Supervision and Management highway property rights.clearing and Regulations on External Entities in Obstacle Clearing and Rescue was developed to improve the introduction
rescue supervision and assessment mechanism of external entities and organize system training to improve road rescue management capabilities.In 2022 Shandong Hi-speed
further revised a total of 19 standardized policy documents for toll management road property
protection mechanical and electrical maintenance customer service etc.Protection of road property by Weifang West Road Management Center33 Shandong Hi-speed Company Limited 2022 Environmental Social and Governance Report 34
Emergency rescue Science-based response to water damage of Weifang-Rizhao Expressway to protect Case people's safety
The Company has strengthened its safety and emergency response capacity formulated various emergency plans such as the
Special Emergency Plan for Flood Prevention and Rescue the Special Emergency Plan for Snow Removal and Anti-Skid and On July 26 2022 the Rizhao section of G1815 Weifang-Rizhao
the Special Emergency Plan for Earthquake Prevention and Disaster Reduction the Pilot Work Plan for Coordinated Response Expressway was hit by a heavy rainstorm and the slope of the
to Traffic Emergency Featuring "Three Parties for One Road" and the Emergency Management Workflow of Transportation downstream graben suddenly collapsed with the volume of
in Bad Weather Conditions on the Northern Line of Jinan-Qingdao Expressway. In 2022 we revised the Comprehensive collapse reaching 20000 cubic meters and the road passage
Emergency Response Plan for Natural Disasters to strengthen our emergency response mechanism improve emergency seriously blocked. The Company to ensure safety and smooth
response capabilities and make every effort to ensure safe and unblocked roads for the public even during natural disasters. traffic flows quickly started the emergency plan and created an
alternative road. The emergency response task was successfully
completed by overcoming difficulties such as land acquisition
Snow Build a sound emergency protection system form an emergency rescue team of 1230 people 403 sets of restrictions and poor geological conditions. During this process no
removal integrated snow removal vehicles loaders and other machinery and equipment more than 7000 tons of Water damage restoration
and flood solid and liquid snow melting agent 9600 cubic meters of flood control sand and 242 sets of pumps and secondary accidents occurred. We managed to ensure the safety
prevention generators to ensure that we have sufficient emergency personnel and materials to respond to any situation. of people and their property and safe and unblocked roads.Organize emergency flood control and emergency exercises simulate highway hazards caused by continuous
Emergency heavy rainfalls require emergency rescue teams to rehearse response to warning alerts the start of the
Drill response and end of the response and 12 subjects according to the emergency plan effectively enhance the
team’s response speed and ability to deal with unexpected hazards. Quality Services
Hidden Strengthen inspection and hidden danger screening ensure the scheduling and response in key low-lying
danger water sections form the five-step work method of "Check Dredging Blocking Prevention and Rescue" and Shandong Hi-speed focuses on the development concept of "Allowing the Public to Enjoy High-Quality Travel Services" and
screening build solid flood control dams to make every effort to respond to typhoons in a science-based manner. is committed to improving customer services ensuring smooth roads and ensuring that customers have an enjoyable travel
experience.Customer service improvement
In 2022 Shandong Hi-speed
Shandong Hi-speed is dedicated to providing customers with high-quality and standardized travel services. In 2022 we
carried out snow removal invested RMB involved more than to fully cover the road conducted a comprehensive analysis of our travel service management system and revised and improved four management
and anti-skid efforts flood sections under its policies. These policies include the Management Measures for Service Quality Inspection of 96659 Hotline the Management
prevention and rescue bridge 2404700 3000 jurisdiction and effectively and Assessment Measures for Travel Service Business the Management Measures for the Information Release of Road
emergencies and other participants improve the Company's Operations and the Emergency Plan for Ensuring Public Travel Information Services. These efforts aim to standardize quality
emergency response and inspection assessment and operation and improve customer services on multiple levels. In addition we organized diversified
emergency drills 80 times rescue capabilities training activities such as "96659 Hotline Communication Skills" training and "Intelligent Control of Variable Information Signs"
training on system control. These activities effectively improved the skills and service capabilities of all information service
personnel.In 2022 Shandong Hi-speed
Case Work safety tabletop exercise answered a total of up
979000 calls by 45.9% from 2021
In December 2022 the Company carried out a desktop artificial customer service posts
drill of comprehensive emergency response plan for
work accidents in the scenario of "A Scaffolding Collapse
Accident in a Construction Contract Housing Project"
involving four stages: accident report ing start of reached had
response public opinion handling and end of response.The participants further clarified the responsibilities and 99.8% in customer satisfaction 99.9% of
procedures stipulated in the emergency plan and further of the 96659 hotline travel service inspected recordings up to standard
improved their emergency rescue capabilities for work
accidents.Tabletop drill for the comprehensive
emergency response plan of work accidents35 Shandong Hi-speed Company Limited 2022 Environmental Social and Governance Report 36
In 2022 Shandong Hi-speed formulated the Management Measures for Complaint Handling which is based on the principle Ensuring the successful completion of the transportation task of the "World's First Ring"
of "Unified Management Classification in Determining Which Department Shall be Responsible Hierarchical Responses and Case a key national nuclear power project
Follow-up Evaluation" to standardize complaint management. We established a workflow that involves "Initiation - Preliminary
Examination - Acceptance - Undertaking – Follow-up Visit - Review - Filing" to address any untimely handling of complaints
enhance the review of all aspects of complaint processing strictly review the results comprehensively improve the timeliness In July and August 2022 the Company actively assisted
standardization and accuracy of complaint processing. In addition we laid out three critical requirements for our information Zhengzhou Dayun Company to finish the transportation
service personnel: "be Patient and Meticulous Remain Steady and Effective and Timely Respond to Complaints" thereby task in the key national nuclear power project of the
upholding our brand's reputation for delivering high-quality travel services. "World's First Ring". During the process we contacted
and coordinated with traffic police officers carriers
and other relevant entities multiple times surveyed
the entrance exit and routes of the Qingdao-Yinchuan
In 2022 Shandong Hi-speed Expressway and finally determined the transportation
route security measures and how transporting vehicles
enter and exit the expressway. We coordinated internal
received a total of the complaint handling rate reached and external resources to overcome difficulties such
2960 complaints4 100% as excessive width of these transporting vehicles restrictions on driving speed and long-distance travel.
We released 43 pieces of traffic control information in
advance answered 86 consultation calls via 96659 Equipment transportation
hotline dispatched 12 patrol vehicles and obstacle-
clearing vehicles and more than 40 security personnel.Complaint handling process We successfully completed the security task with
meticulous security programs considerate travel tips
precise safety control and orderly on-site response.Start Initiation Preliminary examination Acceptance
Smooth traffic flow
Follow-up visit Undertaking
Shandong Hi-speed is committed to building the road management service brand of "Iron Army to Ensure Smooth Traffic Flow."
Our goal is to achieve "The Finest Management" "The Best Road Control Mechanism" "The Shortest Period of Traffic Control"
"The Fastest Road Clearing and Rescue" and "The Best Service Quality and Evaluation" to provide the public with a safe
Reviewed by head Reviewed by business convenient and efficient highway travel environment.of affiliated entity department
To improve the efficiency of traffic flow on ETC lanes the Company actively developed the ETC Operation Analysis Management
System that collects real-time ETC lane transaction data logs and other information. This system enables us to identify ETC
lanes with low efficiency promptly analyze the causes and implement targeted measures to resolve any issues. As a result of
Filing Reviewed by head of business department our efforts we have seen a significant improvement in the proportion of vehicles on ETC lanes passing through toll stations
which has increased from 99.76% to 99.94%.End Case Reconstruction project of Taifei Toll Station on Qingdao-Lanzhou Expressway
We take pride in providing our customers with a range of services including road information alarm assistance timely rescue In 2022 the Taifei Toll Station on G22 Qingdao-Lanzhou
and complaint acceptance. Our customers can access these services by calling the 96659 hotline (within Shandong) to get Expressway was reconstructed by adding entrance and
the appropriate help to avoid unnecessary losses. Meanwhile the Company actively expands its information release channels exit lanes to effectively improve its passage conditions
and collaborates with We Media to provide drivers and passengers with real-time and effective road condition information. In avoid congestion and improve services. After the com-
2022 our "Shandong Hi-speed Travel Service" WeChat mini-app cooperated with more than 30 WeChat traffic official accounts pletion of the project the capacity of Taifei toll station
including the Shandong Provincial Transportation Department Traffic Police on Yantai Expressway and Jining Transportation had been further improved by reducing pressure avoid-
Radio. The mini-app received a total of 9.2052 million visits with the highest number of visits in a single day reaching 119400 ing congestion and providing a fast and comfortable
and the number of WeChat service account users saw a net increase of 113000 2.62 times the increase in 2021. Our WeChat traffic environment for drivers and passengers.mini-app has become one of the most convenient channels for the public to access real-time road condition information.
4 Among them 1125 complaints were filed via 96659 hotline and 1835 complaints via the government service hotline Taifei toll station reconstruction project completed37 Shandong Hi-speed Company Limited 2022 Environmental Social and Governance Report 38
"Electronic Invoice" system
Smart Innovation
Shandong Hi-speed adopts cutting-edge innovative and digital technologies drives innovation in pioneering the new trend of We created the first electronic
smart roads provides customers with comfortable and convenient travel services and thus improving the travel experience for invoice platform for manual
our customers. toll collection lanes in Shan-
dong Province ensuring quick
Smart traffic network departure and online invoicing
for MTC5 drivers. The elec-
In 2022 we prepared and issued the Implementation Plan for Digital Enhancement of Shandong Hi-speed Co. Ltd to guide our tronic invoice system after its
efforts towards digital transformation and actively improved digital and smart management. We developed and launched the release reduces the waiting
toll business audit and assessment management system the road network traffic analysis system and the smart Shandong time by 4 to 6 seconds per ve-
Hi-speed "Pass Code" system the first of its kind across the country. We also connected and optimized the "Intelligent Brain" hicle improves the efficiency
platform and the comprehensive road management system to enhance our business management efficiency ensuring the safe of manual toll lanes by 6.34%
and smooth flow of traffic on our roads. reduces operational costs
by 83% and contributes our
"Drive Now Pay Later" system "Shandong Hi-speed Power"
to the "Going Digital" initiative.The system provides services such as "Drive Now Pay Later" for driver members in the three charging scenarios of
EM lanes (electrical and manual toll lanes) handheld toll collection devices and smart toll lanes. It can save 5 to 10
seconds in transaction per car and increase the efficiency of toll stations by more than 10%. In 2022 the system was "Electronic Invoice" system interface
operated in 10 toll stations such as Ganggou on a pilot basis.Shandong Hi-speed "Pass Code" system
"Drive Now Pay Later" system interface
"Road Damage Compensation at Your Fingertips" system
With the goal of "Reducing Procedures for the Public with
Convenient Data" the Company has built the first online system
for highway road damage compensation obstacle clearance
and rescue in Shandong Province creating a new mode of
online compensation payment. It offers car owners 24/7 online
services to pay road damage compensation with the processing
time down by about 30%. In 2022 the system being fully Shandong Hi-speed "Pass Code" system
available within the Company completed 995 road damage
compensation cases and 633 obstacle clearance and rescue
cases with a total transaction of more than RMB 7.97 million. "Road Damage Compensation at Your Fingertips"
system interface 5 Matual Toll Collection39 Shandong Hi-speed Company Limited 2022 Environmental Social and Governance Report 40
Shandong Hi-speed has widely applied the results of smart development in highway scenarios. In 2022 we successively
launched "Dual Antenna" EM lanes "Contactless" toll stations "Ramp Pre-Transaction + Smart Guidance" system and other
smart highway projects to empower highway construction with technology and create a new benchmark with innovative ideas.Driven by innovation
Case Gushan Smart Toll Demonstration Station successfully opened
Shandong Hi-speed remains at the forefront of promoting innovation capability and
leading the industry in technological innovation. Guided by the 14th Five-Year Plan
On August 10 2022 the western part of Gushan Toll Station for Scientific and Technological Innovation the Company implements the strategy
of Jingtai Expressway completed its smart upgrading and overall goals and key tasks that prioritize scientific and technological innovation. We
transformation. This smart toll station integrating five innovative focus on three goals: "Digital Enhancement 24/7 Access and Energy Conservation
applications namely narrowing the width of toll islands and and Environmental Protection" to promote the application of cutting-edge technology
removing tollbooths integrated electromechanical equipment in our business. We have formulated the Management Measures for Innovation Efforts Reduce the set number of mechanical
ETC pre-transaction self-service smart lane and LED traffic and the Working Guidelines for the Distribution of Science and Technology Innovation and electrical equipment by more than
guide lane officially began to operate. Rewards of Shandong Hi-speed Co. Ltd to improve our innovation work management
compared with traditional lanes and reward distribution mechanism. These measures link science and technology
The Company is the first in Shandong province to narrow the 50% innovation rewards with contributions to the innovation vitality of the Company.width of toll islands reduce the set number of mechanical
and electrical equipment by more than 50% compared with In 2022 the Company launched an innovation and efficiency competition for
traditional lanes and provide users with "Triple Guarantees" employees promoting their active involvement in project construction toll operation
for ETC pre-transaction i.e. ramp free flow lane antennas and other business fields fostering a culture of innovation where "Everyone can To pass through the special ETC exit lanes，and special lane processing terminals and "Triple Guidance" innovate and innovation prevails." By the end of the reporting period the Company
of variable information signs LED guidance screens and road had established 11 scientific research platforms and more than 100 scientific research
running lights. We set up self-service card issuing and payment projects. Nine scientific projects were selected to be on the List of Key Scientific
machines on lanes to realize the function of self-service card Projects in the Transportation Industry issued by the Ministry of Transport. Among
pickup on the entrance lane and self-service payment on the these projects the invention patent titled "Automatic Manufacturing Technology
exit lane. By the end of 2022 the total successful transaction the average time with a of Pretensioned Prestressed Concrete Track Slab Units in Assembly Lines" was
rate of pre-transaction gantries at the Gushan Toll Station taken was awarded the First Prize of the Fourth Shandong Provincial Patent Award issued by the
had been 99.5% and the average time taken by vehicles to 37.9% Shandong Provincial People's Government.pass through the special ETC exit lanes was 4.03 seconds 4.03 increase in passage
with a 37.9% increase in passage efficiency and a significant seconds efficiency
improvement in user experience. In 2022 Shandong Hi-speed
invested more than RMB successfully passed the acceptance tests of
210 million in R&D 3 science and technology projects
obtained published issued and implemented
180 patents 211 papers 7 standards
Gushan Smart Toll Station41 Shandong Hi-speed Company Limited 2022 Environmental Social and Governance Report 42
Innovative Technology R&D Project Safety Development
Shandong Hi-speed practices the philosophy of "Putting People First and Safe Development." We are fully committed to
achieving our work safety target of "Zero Accidents and Zero Deaths. " With a steadfast commitment to "Putting People and Life
* C arbon reduction technology for bridges and asphalt pavements in highway First" we continue to implement the work safety policy of "Safety First Prevention First and Comprehensive Management" at
reconstruction and expansion project every step of our operations and reinforce the bottom line of safe development.Work safety guarantee initiatives
To support two major highway projects the bridge reconstruction and expansion project and the
asphalt pavement construction project the Company conducted technical research on areas such Revise policies such as the Work Safety Management Measures the Fire Safety Management
as energy consumption and boundary confirmation carbon emission calculation carbon reduction Measures and the Assessment Measures for the Work Safety Responsibility System for All Headquarters Policy
measures during construction. Through innovative use of the LCA6 method we measured carbon revision Staff (For Trial Implementation) improve the Work Safety Management Assessment Reward and
emissions at each stage and established calculation models. We explored quantifiable and Punishment Measures and other reward and punishment policies on work safety evaluate the work
replicable highway reconstruction and expansion measures. The investment in the project is safety management of each entity and regulate the work safety among employees.expected to be RMB 2 million including an investment of RMB 576000 made this year.Promote the development of the responsibility system for all employees issue a list of work safety
responsibilities for all employees clarify the responsibility of each entity for work safety and promote
* Key technology and projects for the ecological utilization of bulk solid waste in System the whole-process work safety management. Our occupational health and safety management system
expressway reconstruction and expansion of the Yellow River Basin improvement has successfully passed an external audit and maintained the highest evaluation of an AA safety credit
system by the Shandong Provincial Transportation Department. The experience and achievements of
our system development have been promoted by Shandong Provincial Transportation Department.The Company built on the technical research and development of the Jinan-Heze Expressway
Construction and Expansion Project to conduct systematic research on and offer a reference for
the ecological utilization of bulk solid waste in expressway reconstruction and expansion of the
Yellow River Basin. We took into account various factors such as environmental protection in the Build a sound hierarchical work safety risk control mechanism conduct regular hazard identification and Risk
region special soil quality solid waste materials and the damage to old roads. The investment in control risk evaluation across all entities formulate a hierarchical work safety risk control list and implement
the project is expected to be RMB 2.7 million including an investment of RMB 731000 made this corresponding control measures to prevent work accidents.year.Implement hidden hazard screening improve the list of risks and hidden hazards add three new types
* K ey technology for stiffness difference control and splicing of old and new bridges in of risks and hidden hazards i.e. construction environmental protection operations and hazardous
highway reconstruction and expansion projects Hidden
hazard chemicals on the basis of the original 10 types of safety hazards and problems. Leverage the list
screening the "Gridding + The Road Chief System" hidden hazard investigation mechanism the backtracking
mechanism the "Snapshot" application and other ways to track work safety hazards establish a ledger
The Company employed 3D simulation software to simulate and calculate the splicing parts of and implement rectification work.bridges. We employed tracking measurement and detection of bridges during the reconstruction
and expansion project to effectively monitor bridge settlement differences and splicing part
operation. This also provides important reference data for the design and construction of the
Organize special rectification activities and inspections for toll collection limited space operations
splicing of highway bridges under reconstruction and expansion. The investment in the project is
firefighting etc. The Company conducted 58 on-site safety inspections and two online inspections and
expected to be RMB 2.133 million including an investment of RMB 348000 made this year. Safety
inspection identified and rectified more than 410 issues. Conducted more than 5000 inspections at all levels and
entities and more than 7000 hidden hazards were identified and rectified effectively solving various
outstanding problems and major hidden hazards.
6 LCA Life Cycle Assessment43 Shandong Hi-speed Company Limited 2022 Environmental Social and Governance Report 44
To improve employee’ safety practices and create a safe work environment the Company conducts various training activities Emergency law knowledge
such as safety professional qualification training "Large-scale Learning Training and Examination" special activity and IT- competition in Shandong province
based network safety training and organizes our employees to participate in the national "Ankang Cup" safety knowledge
competition and attend public safety courses and safety alerting education. These efforts aim to enhance employee safety skills
and work safety quality and build a strong line of defense to maintain the stability of a safe workplace.Case "Large-scale Learning Training and Examination" special activity
Shandong Hi-speed has taken firm actions to organize safety education and training for all employees and issued the "Work Safety Theme Day" activities at entities
Implementation Plan for the Special Activity of "Large-scale Learning Training and Examination" on Work Safety. We
compiled and issued more than 2300 compilations concerning work safety laws and regulations national and provincial
typical accident cases etc. and organized the headquarters and each entity to learn those compilations in a flexible
way. The Company has organized three centralized learning sessions in the form of public lectures and training by
external experts and internal lecturers and launched five issues of the "I Want to Learn Safety" series. We developed In 2022 Shandong Hi-speed invested RMB
and promoted an online learning and training mini-program to realize "One File for One Person" in safety education
and training and carried out mock quizzes and large-
scale examinations on the mini-program to improve The "I am the First Person Responsible for Safety" in work safety
the overall safety of all employees. By the end of the online clock-in activity 41696100
reporting period the Company's headquarters and
all its affiliated entities have completed the "Large-
scale Examination" and the special examination of the Common Growth with Suppliers
innovative provincial "Eight Focuses and 20 Terms"
work safety initiative with 100% of our employees Shandong Hi-speed takes an active role in guiding suppliers standardizing supplier management and integrating the concept
passing the examinations. of sustainable development into procurement. We are committed to creating a high-quality and long-lasting partnership with our
supply chain. Our procurement practices follow all relevant laws and regulations such as the Law of the People's Republic of
China on Tendering and Bidding and the Regulations on the Implementation of the Law of the People's Republic of China on
Tendering and Bidding. We have also formulated internal management policies including the Management Measures for Bidding
and Procurement and the Management Measures for Non-bidding Procurement. To ensure a fair transparent and sustainable
supply chain we require all affiliated entities to formulate targeted internal control systems and establish a top-to-bottom bidding
and procurement management system.Compilations of regulations and accident cases The Company standardized the bidding management process established a smart bidding system improved its hierarchical
supplier management approach and enhanced the whole-process management model. We innovated our procurement mode
and method by adopting a centralized procurement mode and setting up a bidding module in the bidding system. These efforts
are aimed at saving costs and improving efficiency in the procurement process. In 2022 we successfully completed 79 bidding
projects including 52 Type I projects and 27 Type II projects along with 642 non-bidding projects.We regularly conduct supplier assessments utilizing a comprehensive approach that takes into account both specific details
and the larger perspective. We either require rectification for or disqualify the suppliers which fail to meet our standards with
the ultimate goal of identifying and partnering with high-quality suppliers that can offer superior products and services. Our
assessments also consider the environmental and social performance of suppliers. In certain projects we require suppliers
to provide environmental management certification (ISO 14001) or occupational health and safety certification (GB/T 28001
ISO45001 or OHSAS 18001). In addition we regularly carry out publicity and training related to supplier management related
systems with the goal of enhancing the professional abilities of bidding and procurement personnel strengthening inspection
and investigation procedures and standardizing relevant processes."I Want to Learn Safety" series The "Large-scale Examination" interface In 2022 the Company signed contracts with
The Company carried out a series of unique and effective activities under the theme of "Following the Work Safety Law as
the First Person Responsible for Safety." Through integration with party building and promoting learning through competition suppliers suppliers in s uppliers in Chinese
and interactive education the Company won the sixth place among central and provincial enterprises in the first provincial 619 434 Shandong province 185 Mainland (Shandong
emergency management law knowledge competition jointly held by six departments such as the Publicity Department of the Province excluded)
Shandong Provincial Party Committee. We ensure all employees to learn understand and ensure safety in a strong cultural
atmosphere.45 Shandong Hi-speed Company Limited 2022 Environmental Social and Governance Report 4647 Shandong Hi-speed Company Limited 2022 Environmental Social and Governance Report 48
Green Construction We continuously improve our ability to protect the environment create green expressway projects and promote the construction
goal of low-carbon development through the following technical innovation and optimization initiatives.Shandong Hi-speed always adheres to the principle of "Maximum protection strictest control minimum damage and strongest
maintenance" and leverages technical innovation to strengthen the construction of green expressways. Through concrete Shandong Hi-speed green construction highlight lnitiatives
actions we are dedicated to contributing to sustainable development.* Prepare resource conservation and environmental protection plans optimize construction
The Company attaches importance to ecological protection and follows policies and standards such as the Environmental plans and strengthen environmental monitoring;
Protection Law of the People's Republic of China the Code for Design of Highway Environmental Protection and the Technical * Conduct regular coordinated inspections to timely detect and prevent site violations and
Guidelines for Environmental Risk Assessment on Projects of the People's Republic of China. We have also formulated internal impose strict penalties on entities with inadequate management and implementation
management policies such as the Management Measures for Highway Construction Projects. Our commitment to national Environmental management of measures to regularize construction site environmental protection and civilized
energy-saving design standards is unwavering throughout the project's life cycle from design to construction and operation. construction;
We actively strengthen construction power water and energy saving measures and assess the progress of environmental * Set up full-time environmental protection officers to be responsible for the environmental
objectives that strive to reduce the environmental pollution caused by our projects. and ecological protection of the construction site and its surroundings and strengthen
environmental protection education for construction personnel.Meanwhile biodiversity protection is also a top priority during construction and we ensure that construction sites are far
away from wetlands and wildlife habitats and take multiple measures to minimize the impact on locals. In 2022 we remained
committed to our environmental protection responsibilities and had commissioned professional institutions to carry out project
environmental impact assessment before the start of any construction project to resolutely prevent environmental risk accidents. * Implement measures such as roadbed backfilling local municipal planting and
construction of access roads to eliminate building earthworks and reduce the use of
land resources take measures such as topsoil stripping roadbed drainage drainage
connection comprehensive protection of roadbed slope and makeshift fencing and
restore vegetation right after the completion of a project to ensure timely restoration of
Ecological vegetation and the road surface;
protection * Schedule construction activities to avoid the rainy season and other periods of high water
loss and the flowering periods of plants to minimize the impact on the yield of farmland
and orchards and maintain the sustainability of ecological functions of vegetation along
the construction route;
* Adopt measures such as an automatic water spraying system sprinkling dusting green
net covering and planting turf (grass seed) to restrain dust emissions.Resource * Conduct technical clarifications to avoid rework and lessen the loss of raw materials and
conservation fuel.* Boost environmental-friendly new technologies materials equipment and processes
and implement waste recycling;
* Transport hazardous wastes to specified discharge places for safe and proper disposal
Environmental impact report for Jinan-Taian Environmental impact report for Qihe-Jinan
Waste based on their different characteristics. Establish a three-stage sedimentation tank to Section of Beijing-Taipei Expressway Section of Beijing-Taipei Expressway
management treat sewage generated during construction. Use the treated sewage to mix concrete and
reduce dust in the mixing plant with a reuse rate of 100%;
* Strengthen slag disposal management during construction and ensure domestic sewage
is treated by a third-party environmental protection company to avoid the direct discharge
of domestic sewage and reduce water pollution.49 Shandong Hi-speed Company Limited 2022 Environmental Social and Governance Report 50
Reconstruction and expansion project of Jinan-Taian Section of Beijing-Taipei Expressway Energy and resources in 2021 Energy and resources in 2022
Case to strengthen ecological protection
Consumption of electricity Consumption of natural gas Consumption of electricity Consumption of natural gas
Reconstruction and expansion project of Jinan-Taian Section
of Beijing-Taipei Expressway passes through the Gushan soil
conservation ecological protection area the site of the Great Wall 13577.47 132.12 8365.61 45.52
of Qi and the quasi-protection areas of groundwater sources
such as the Yufu River the Guyunhu Reservoir and the North 10000 kWh 10000 cubic meters 10000 kWh 10000 cubic meters
Dasha River. To prevent such areas from being polluted the
Company has developed the environmental risk emergency plan Consumption of liquefied Water consumption in office Consumption of liquefied Water consumption in office
and emergency coordination mechanism. Reinforced anti-collision petroleum gas petroleum gas
guardrails anti-rollover facilities speed limit signs and warning
signs for vehicles loaded with dangerous goods the surveillance
system and the communication system have been set up at 98.48 130.12 115.56 75.13
the bridges and roadbeds located near the water-sensitive tons 10000 tons tons 10000 tons
environment to avoid dangerous accidents. Meanwhile bridge
runoff collection systems and oil-water separation pools were Gasoline consumption Diesel consumption Gasoline consumption Diesel consumption
put in place in this project and daily inspection and maintenance of official vehicles of official vehicles of official vehicles of official vehicles
efforts were strengthened to ensure that sewage produced during
car accidents will not be discharged into water bodies and prevent Construction of an oil-water separation pool in the
water pollution from sudden accidents of vehicles loaded with reconstruction and expansion project of Jinan-Taian
dangerous goods. In 2022 17 oil-water separation pools were set Section of Beijing-Taipei Expressway
183.0395.89119.5288.69
up in water-sensitive areas in the reconstruction and expansion 10000 liters 10000 liters 10000 liters 10000 liters
project of Jinan-Taian Section of Beijing-Taipei Expressway.In addition in the planning and design stage of the project about 26km of anti-glare plants in road sections are Greenhouse gas emissions in 2021 Greenhouse gas emissions in 2022
generally kept; the road alignment design is optimized in the project; and the proportion of flat and longitudinal section
adjustment reaches 37% to protect the existing slope ecology and retain the existing road ecological resources with the Comprehensive energy Comprehensive energy Comprehensive energy Comprehensive energy
greatest efforts. consumption7 consumption density consumption7 consumption density
21781.320.01313503.450.007
tons of standard coal tons of standard coal/ tons of standard coal tons of standard coal/
RMB 10000 RMB 10000
Greenhouse gas emissions Greenhouse gas emissions Greenhouse gas emissions Greenhouse gas emissions
(scope I)8 (scope II)9 (scope I)8 (scope II)9
9713.85120065.576305.2747709.07
Flat and longitudinal section adjustment of the tons of carbon dioxide tons of carbon dioxide tons of carbon dioxide tons of carbon dioxide
The preserved seedlings in the middle of the reconstruction and reconstruction and expansion project of Jinan-Taian
expansion project of Jinan-Taian Section of Beijing-Taipei Expressway Section of Beijing-Taipei Expressway equivalent equivalent equivalent equivalent
Greenhouse gas Greenhouse gas emission Greenhouse gas Greenhouse gas emission
emissions density emissions density
129779.410.08054000.500.029
tons of carbon dioxide tons of carbon dioxide tons of carbon dioxide tons of carbon dioxide
equivalent equivalent/RMB 10000 equivalent equivalent/RMB 10000
7 Comprehensive energy consumption is calculated according to the General Principles for Calculation of the Comprehensive Energy Consumption: GB-
T2589-2008.
8 The greenhouse gas emissions (Scope 1) are those from gasoline diesel natural gas and liquefied petroleum gas consumption and calculated according
to the standards of the 2006 IPCC Guidelines for National Greenhouse Gas Inventories.
9 The greenhouse gas emissions (Scope 2) come from the purchased electriAcity consumption with the electricity emission factor referring to the Notice on
Doing a Good Job in 2023-2025 Reporting and Management of Greenhouse Gas Emissions of Power Generation Enterprises released by the Ministry of
Ecology and Environment of China on Feb 7 2023.51 Shandong Hi-speed Company Limited 2022 Environmental Social and Governance Report 52
Green Maintenance Road vegetation maintenance
Shandong Hi-speed further implements the concept of green transportation by promoting new green maintenance technology Shandong Hi-speed is committed to maintaining a high standard of road appearance through daily maintenance work such as
and comprehensively strengthening the construction of the green transportation system. Guided by the development of "Six road surface cleaning repair and vegetation pruning to showcase the brand image of "Shandong Hi-speed's precise and long-
features of Shandong Hi-speed" we focus on precision maintenance to steadily improve our maintenance management quality lasting maintenance." In 2022 we successfully completed 140 trimming and 56 watering operations ensuring timely and high-
and efficiency. Meanwhile we prioritize environmental risk prevention and control and adhere to the working principle of "No quality daily maintenance management.road closure and less road closure." We take well-considered and appropriate measures to respond to risks and hidden hazards
caused by extreme weather events to minimize the impacts of traffic control and comprehensively prevent risks.The Company vigorously promotes the application of new technologies new techniques new materials and new equipment with Shandong Hi-speed upgraded the vegetation of Huashan North ramp circle of Jinan-Guangzhou Case
a smart maintenance feature to reduce carbon emissions during the maintenance process. We continue to invest in material Expressway
conservation and recycling technology while focusing on road vegetation maintenance and noise pollution prevention and
road quality improvements. In 2022 we actively carried out innovative research on green maintenance and published five
standardization manuals including the Technical Guidelines on Expressway Greening and Maintenance. These manuals provide In 2022 Shandong Hi-speed guided by the purpose
comprehensive guidance on various topics such as water and fertilizer and soil management pest control plant pruning and of safety ecology and beauty and the principle of
shaping disaster prevention and replanting and renewal which serve as practical tools for daily greening management and green recycling economic feasibility and convenient
maintenance. management made full use of the existing conditions
of the ramp circle to clean and reshape the residue
Preventive maintenance previously damped. We took measures to restore and
improve soil to create an environment suitable for plants
Preventive maintenance is the most viable way to reduce the whole life cost and minimize the carbon footprint during road to grow built watering facilities covering the ramp circle
maintenance. We actively adopt new technologies and materials such as the micro surface treatment technology and the fog and a nursery of about two thousand square meters
seal layer technology for road preventive maintenance. As a trailblazer in the industry in 2022 we led the way in the application within the ramp circle to conserve the road ecosystem
of preventive maintenance technology. and improve environmental quality. Jinan-Guangzhou Expressway greening project
Case Application of new materials on Lanshan-Heze Expressway
Noise pollution prevention
The Zaozhuang-Linyi Section of Lanshan-Heze Expressway after about 10 years of operations had seen slowing and
increased traffic flow and various problems on its pavement. In 2022 Shandong Hi-speed implemented the concept of The Company puts a high premium on noise pollution prevention and takes proactive actions to lessen the impact of traffic
preventive maintenance and adopted seven new ultra-thin overlay materials to reduce the whole life cost of pavement noise. These measures include the installation of new noise reduction devices and the replacement of sound barriers. In 2022
maintenance. They include ultra-thin asphalt overlay which is a low-carbon environmentally friendly and structurally we utilized porous aluminum material to develop sound barriers the first of its kind in China. As part of the reconstruction and
and functional sophisticated road pre-maintenance technology and can reduce carbon dioxide emissions to more than expansion project of the Jinan-Taian Section of the Beijing-Taipei Expressway we have installed a total of 12.694 kilometers of
2 times compared to other technologies. sound barriers to further enhance its noise pollution and environmental protection capabilities.
Lanshan-Heze Expressway maintenance
Material conservation and recycling
Through the implementation of various recycling technologies Shandong Hi-speed maximizes the utilization of waste asphalt
mixes and manages to save a significant amount of raw materials. At the same time our reduction in stone mining minimizes Sound barrier construction
the negative impact on land resources and ecology. In 2022 we saved a total of 52900 tons of limestone and 685.18 tons of
Asphalt 70 and recycled 296 cubic meters of waste asphalt.53 Shandong Hi-speed Company Limited 2022 Environmental Social and Governance Report 54
Shandong Hi-speed carried out a pilot project of energy-saving environment-friendly
Case and zero emission renovation
In 2022 Shandong Hi-speed carried out the pilot project of energy-saving environment-friendly and zero-emission
renovation of its maintenance centers. For instance we renovated the domestic sewage and kitchen waste treatment
system of Weifang Maintenance Sub-center. The renovated system integrates and treats domestic waste office waste
and kitchen wasted to achieve the best effects in going green and low-carbon and zero-emission.We adopted the shipping container substrate made through the anti-corrosion process in the sewage treatment system.Through a variety of processes and technologies the system can perform decarbonization denitrification phosphorus
removal clarification and disinfection treatment to ensure the effluent discharge to meet the level A standard as
Green Office stipulated in the Discharge Standard of Pollutants for Municipal Wastewater Treatment Plants. In addition the kitchen
waste treatment system can complete the whole process waste disposal from reduction of waste amount to biological
fermentation turning organic waste into bio-organic fertilizers through conversion and fermentation with a reduction
Shandong Hi-speed adheres to the concept of "Green office and low-carbon life" and aims to promote a healthy office rate of up to 90% to enhance ecological protection.environment. We have been actively promoting Office Automation (OA) optimizing the system to streamline the approval
process. Additionally we have launched the intelligent office system which provides employees with flexible mobile solutions to
create a green office culture.Resource conservation
The Company has established an electricity management system and actively formulated the energy saving and consumption
reduction work plan. Our efforts include switching off unnecessary lights and installing intelligent devices such as intelligent
light control systems energy-saving lamps and climate control systems. We also employ quantitative assessments of electricity
conservation to form a sound electricity saving mechanism. Regarding water conservation we conduct regular inspections and
maintenance to prevent water wastage and prioritize water resource recycling to optimize our water efficiency.Shandong Hi-speed sewage treatment system Shandong Hi-speed kitchen waste treatment system
Waste disposal
Vehicle management
The Company places a strong emphasis on environmental
protection and upholds the principle of centralized waste
storage and recycling. We actively promote the recycling The Company has formulated internal management policies such as the Vehicle Management Measures and the Vehicle and
of office supplies and commission maintenance entities Driver Safety Management Measures to establish detailed vehicle energy-saving measures. We advocate green and carpool
to recycle batteries cartridges and other harmful waste travel for employees to effectively control the frequency of using the Company’s vehicles reduce exhaust emissions and lower
to minimize environmental pollution. To encourage good environmental pollution. Meanwhile we install charging piles in office buildings and encourage employees to practice low-carbon
waste management practices among employees we have travel by taking shuttle buses and driving new energy vehicles.implemented a classification system for garbage bins and
encourage proper sorting to reduce land pollution caused by Environmental protection culture promotion
hazardous substances. During the COVID-19 pandemic we
established special medical waste bins for the disposal of The Company strives to create an energy-saving atmosphere
waste medical materials. We regularly disinfect these bins and by putting up energy-saving signs and slogans and actively
hand over the waste to local pandemic prevention departments providing training related to environmental protection to
for centralized treatment seeking to render waste harmless foster a good culture of "Conserving everything by everyone
and transform its resources to minimize pollution and promote everywhere in every sector."
the green and sustainable development of the Company. Shandong Hi-speed waste battery recycling
In addition Shandong Hi-speed has made steady progress in
promoting the construction of standardized fields and stations
and upgraded its maintenance fields stations and courtyards
to meet energy-saving environmentally friendly and zero-
emission standards. This upgrade is aimed at contributing to
achieving the goal of "Peaking carbon emissions by 2030 and Promotional film watching on the National Low-carbon
achieving carbon neutrality by 2060." Day at Shandong Hi-speed55 Shandong Hi-speed Company Limited 2022 Environmental Social and Governance Report 56
Case Shandong Hi-speed invested in a distributed photovoltaic power generation project
Waste 2497 Recycled Waste lamps ink cartridges 767 A total investment Reduce approximately comprehensive lamps ink cartridges In 2022 Shandong Hi-speed completed the
investment in the distributed photovoltaic power of about RMB energy consumption by
generation project of the Second Sewage
Treatment Plant in Laizhou which leverages solar 1.86 million 184.00 tons of standard coal
Waste printer 2999 Waste 6404 energy and other renewable energy for power cartridges printer cartridges paper packs generation with a total investment of about RMB
1.86 million. After the completion of the project it
can reduce the consumption of fossil resources
Sulfur dioxide Nitrogen oxide Carbon dioxide
Waste Waste and harmful gas emissions. For instance it can emissions by emissions by emissions by
batteries 11148 paper 746.03 reduce approximately comprehensive energy batteries tons
consumption by 184 tons of standard coal sulfur tons tons tons
dioxide emissions by 3.75 tons nitrogen oxide 3.75 1.27 493.00
emissions by 1.27 tons and carbon dioxide
Waste ink 1428 Kitchen 347.83 emissions by 493 tons per year.cartridges ink cartridges waste tons
Case Shandong Hi-speed signed a project contract for urban sewage treatment
In 2022 Shandong Hi-speed signed an urban sewage treatment project in Hanting District Weifang City with the
district government and partner companies. The project is designed to treat 35000 tons of sewage per day in the short
Green Investment term and 50000 tons of sewage per day in the long term. It integrates the functions of production and operations and regional water pollution control and contributes the "Shandong Hi-speed" power to the battle against regional pollution
and the development of regional ecological civilization.Shandong Hi-speed remains committed to the green development path and continuously expands its green environmental
protection investment projects. We focus on the intelligent environmental protection industry and strive to become a leading
operator of intelligent environment sharing the benefits of green development with society. During the "14th Five-Year Plan"
period we have expanded our main industrial chain to include environmental protection as one of our four major development
sectors.The Company has made significant investments in the environmental protection industry including the acquisition of a 51%
stake in Econ Technology Co. Ltd. We have invested in various fields such as urban water supply sewage treatment seawater
desalination the circular economy new energy utilization sludge resource utilization hazardous waste treatment and soil and
ecological environment restoration.Case Shandong Hi-speed invested in a hazardous waste treatment project
In 2022 Shandong Hi-speed completed its investment in A total The total hazardous
Yibin Hazardous Waste Disposal Project (Phase II) which is a investment of waste disposal
comprehensive hazardous waste treatment project with a total about RMB capacity will be
investment of about RMB 1.1 billion. After its completion the
total hazardous waste disposal capacity will be 50000 tons per 1.1 billion 50000
year which can realize the waste amount reduction of more than tons per year
40 kinds of hazardous waste treatment including incineration
and landfill. It can contribute to the city's green low-carbon and
circular development and its efforts to go "Waste-free."
Sewage treatment park design57 Shandong Hi-speed Company Limited 2022 Environmental Social and Governance Report 5859 Shandong Hi-speed Company Limited 2022 Environmental Social and Governance Report 60
Employment Compliance Workforce composition
Statistics in 2021 Statistics in 2022
Shandong Hi-speed fully implements its people-oriented employment philosophy and ensures the smooth implementation of Total number of employees 9849 employee
employment compliance through institutional guarantees that adhere to relevant laws and regulations such as the Labor Law Total number of employees 9395 employee
of the People's Republic of China and the Labor Contract Law of the People's Republic of China as well as internal policies Number of newly hired employees employee
such as the Management Measures for Employee Recruitment and the 2022 Staffing Plan of the Expressway Transportation 190
Management Centers. Statistics in 2021 Statistics in 2022
Parent company Parent company
Employment 5317 employee Proportion 56.58% 5171 employee Proportion 52.50%
Distribution Major subsidiaries Major subsidiaries
In 2022 the Company formulated and continued to refine its internal policies such as the Management Measures for Employee by personnel
Recruitment to better standardize the recruitment process and clarify requirements for new hires such as their graduation 4078 employee Proportion 43.42% 4678employee Proportion 47.50%
institutions and academic programs. We also actively carry out internal transfer work and continues to optimize the workforce
structure by promoting competitive personnel selection for management business and technical vacancies providing more job Statistics in 2021 Statistics in 2022
options for our employees and fully unleashing the potential of our high-quality talent.Postgraduate and above Postgraduate and above
The Company upholds the principle of diversified and equal recruitment and employment and strictly prohibits any forms of 606 employee Proportion 6.45% 681 employee Proportion 6.90%
discrimination harassment or unethical competitive behavior based on factors such as gender age educational background
region religion and sexual orientation. We firmly protect the basic rights and interests of our employees particularly those who Undergraduate Undergraduate
are vulnerable. Also we implement stringent screening of employees' personal identification information during the recruitment employee Proportion employee Proportion
process and ensure that employment contracts are signed with all employees to eliminate illegal employment practices Distribution by 4826 51.37% 5085 51.60%
including child labor and forced labor. educational Junior college Junior college
structure
2870 employee Proportion 30.55% 3054 employee Proportion 31.00%
Below junior college Below junior college
In 2022 the Company
1093 employee Proportion 11.63% 1029 employee Proportion 10.50%
had a total of had a total turnover rate of Statistics in 2021 Statistics in 2022
9849 1.70% Production workers Production workers
employees 6372 employee Proportion 67.82% 6546 employee Proportion 66.40%
no Salespersons Salespersons had illegal had had a 78 employee Proportion 0.83% 40 employee Proportion 0.40%
employment cases
190 100% employment such as child labor and Technicians Financial staff forced labor Distribution by
new hires contract signing rate professional 1752 employee Proportion 18.65% 1995 employee Proportion 20.30%
structure
Financial staff Administration staff
169 employee Proportion 1.80% 154 employee Proportion 1.60%
Administration staff Administration staff
1024 employee Proportion 10.90% 1114 employee Proportion 11.30%
The Company adheres to the principle of "recruitment based on posts dynamic management and integrated management"
and improves the efficiency of human resources management. We achieve this through the implementation of digital upgrading
of human resources standardizing and perfecting staffing efforts and optimizing the management system. Our efforts are aimed
at attracting and retaining talent to contribute to the high-quality development of the Company. In 2022 the Shandong Provincial
State-owned Assets Supervision and Administration Commission evaluated and approved our human resources practices as
one of the first batch of typical cases which were then promoted among provincial enterprises.61 Shandong Hi-speed Company Limited 2022 Environmental Social and Governance Report 62
Human Resource management initiatives in 2022 Salary composition of Shandong Hi-speed Employees
* Organize discussions on freeing up ideas and form a table for the digital enhancement work plan;
* Develop and implement the mobile personal information inquiry for employees launch a new Fixed * Linked to the employee's position length of service etc.version of employee payroll import and payroll statistics and improve background data statistics for Salary
outsourced service personnel;
Digital
Enhancement * Complete the online revision and overall optimization of the HR system integrate and establish
of HR System six function modules i.e. Employee Information Management Salary Management Assessment
Management Training Management Historical Data Inquiry and Management System Regulation.Flexible * Linked to the Company's operations and employees' personal appraisal and
Salary performance
* Develop and issue relevant systems to fill the vacancies in the management of the Company's
logistical posts in each transport management center;
* Comprehensively consider the progress of the toll station smart enhancement and transformation
projects formulate and optimize the staffing adjustment for smart equipment recruit toll collectors
and other supporting roles in a flexible manner; Employee Development
* Comprehensively analyze changes in factors such as traffic flow mainline mileage and bridge length
in each operation and management center and complete dynamic adjustment of staffing in operation
Standardize
and Improve and management centers; Shandong Hi-speed understands that high-quality talent is the driver for its sustainable development. To foster a team of skilled
Staffing and dedicated employees we have established a scientific training system to enhance their comprehensive abilities expand * Determine the overall price and number of renewals of the outsourcing contracts for toll collection their development prospects and provide a platform for them to achieve their full potential and personal growth.and logistics services for each section and each transport management center in 2022 and organize
the completion of the renewal of the outsourcing contracts for service operations.Employee training
* Further optimize the labor personnel and distribution management system that is compatible with
the market economy and the functional positioning of the Company; The Company has formulated and improved the Implementation Rules for Vigorously Introducing and Cultivating Young Talent
Optimize the and has developed categorized and graded annual training plans based on the business skills and comprehensive qualities * Inspect each of its 35 affiliate entities on the implementation of employment personnel management
Management of our employees providing tailored improvement courses that align with their career development paths. In 2022 we fully
System income distribution and other related work and policies. explored and utilized the online learning platform to organize a variety of training programs such as "Quality Improvement
Training for All" "Continuous Education for Professional and Technical Employees" and "Star Future - Online Training Camp for
Recently Graduated University Recruits." Through centralized training on-the-job guidance exams and business competitions
Salary and benefits we strive to promote the continuous improvement of our employees.Shandong Hi-speed firmly believes that employees are the mainstay of its survival development and growth. To enhance
employee satisfaction and loyalty we offer a flexible salary system that is tied to the Company's performance and can be
adjusted as necessary. Additionally we provide customized benefits that cater to the specific needs of employees demonstrating In 2022 the Company
our commitment to improving their well-being.The Company has formulated an internal salary allocation system that is tied to employee performance appraisal. This system
specifies rules for the management of total salary salary management performance appraisal medium and long-term incentives
and other employee salary-related content and ensures that salary allocation is fair and reasonable. In 2022 the Company
further revised its internal policies such as the Management Measures for Total Salary Distribution the Management Measures
for Business Performance Appraisal and Salary of Responsible Persons in Affiliated Entities (for Trial Implementation) and the
conducted a total of had had a total of had
Management Measures for Appraisal and Salary of Headquarter Departments and Offices to ensure the orderly implementation
of salary distribution and performance appraisal. 1467 employee 69188 1339793 19.40 training
We actively create a sophisticated welfare system that ensures that all employees receive national statutory benefits such training sessions employee participants training hours hours per person
as social insurance and housing funds as well as corporate independent benefits such as enterprise annuity supplementary
medical insurance and pensions. Our commitment to offering competitive benefits serves as a way to attract and retain high-
quality talent. In 2022 we applied for medical insurance approval and conducted a review of employer liability insurance payout
cases over the last 10 years providing clarity on employer liability insurance payouts and protecting the rights and interests of
our employees.63 Shandong Hi-speed Company Limited 2022 Environmental Social and Governance Report 64
Average training hours of employees by profession in 2022
As of the end of the reporting period Shandong Hi-speed
25hours 25 hours had selected had selected had selected had selected had selected
16 hours hourshours 18 18 2 senior 23 151 1292 111
technicians technicians senior workers intermediate workers junior workers
Production workers Salespersons Technicians Financial staff Administration staff Employee incentives
Shandong Hi-speed organically aligns employees' career goals
with its development strategy. We offer various incentives such
as excellent talent recognition equity incentive plans and
excess profit-related bonus. to motivate employees and ensure
their continued growth and development. These efforts aim to
create a mutually beneficial relationship between the company
and its employees.Announcement on the company’s
"Excellent Talent" Award in 2022
Case Employee stock incentive plans
In 2022 Shandong Hi-speed continued to further promote a series of medium Shandong Hi-speed helped
and long-term incentive measures such as the equity incentive plan and the
excess profit-related bonus. We also further reviewed the completion of stock 195 employees to
option preconditions analyzed and facilitated the delivery of the purchase prices complete the first stage of
and taxes during the exercise period and enhanced the employees' sense of stock incentive work
identity with the Company. During the reporting period Shandong Hi-speed
helped 195 employees to complete the first stage of stock incentive work.Case 2022 Outstanding mentor and apprentice and outstanding young talent recognition
Training for new hires
In 2022 Shandong Hi-speed selected five groups of
"Excellent Mentors and Apprentice" and 12 "Excellent
Employee promotion and assessment Young Talents" in the year and commended them
within the Company to inspire all employees to make
progress and high-quality talent to improve them-
Shandong Hi-speed based on internal policies such as the Work Plan for Corporate Skilled Talents Self-Assessment and the selves.Implementation Plan for Independent Evaluation of Vocational Skill Talents of Highway Toll Collection and Monitoring in 2022
insists on providing a science-based post rank system for employees creating a fair and just promotion and development path
and empowering long-term development of employees.In 2022 the Company continued to conduct pilot independent evaluations of vocational skill talent through theoretical
examinations practical examinations and comprehensive evaluation to further expand the career development channels
of employees. At the same time we further optimized the internal performance appraisal system to tie employee salaries to
performance appraisals further motivating our employees to improve their skills and implement the fair principle of "more work
more salary." "Excellent Mentor and Apprentice" selection and reporting65 Shandong Hi-speed Company Limited 2022 Environmental Social and Governance Report 66
Humanistic Care Case "Workers' Home" construction
Shandong Hi-speed has always regarded caring and respecting employees as the key to delivering its humanistic care. We Shandong Hi-speed actively carries out the construction
value communication with our employees and strive to continuously convey the corporate spirit to employees through colorful of "Workers' Home" to better deliver its humanistic care
cultural and sports activities and caring initiatives with warmth aiming to inspire a culture of excellence. psychological guidance and emotional guidance for
frontline workers. In 2022 the Company's trade unions
Employee communication at all levels invested a total of nearly RMB 5 million in
special funds to complete the construction and upgrad-
ing of 78 frontline "Workers' Homes."
Shandong Hi-speed has established a democratic management mechanism. We have established an employee representative
assembly to promote employee involvement in corporate governance allowing employee representatives to serve as key
decision-makers regarding their own affairs and fostering a closer relationship between employees and the Company. In 2022
we actively responded to the "Corporate Democratic Management to Improve the Quality and Efficiency Year" activity carried
out in Shandong Province. Using platforms such as our WeChat official account and intelligent communication we focused on "Workers' Home"
the "Cohesion" project and continued to improve our internal labor dispute coordination mechanism ensure the transparency
of factory affairs and build a harmonious labor relationship. We also deepened the democratic management by conducting
employee representative assemblies and frontline staff forums. Case Additional staff passage at the Rose Toll Station in Pingyin County Heze City Shandong Province
Case Seminars for frontline employees In 2022 Shandong Hi-speed's Taidong Transportation
Management Center launched a project to instal addi-
tional staff passage at the Rose Toll Station carried out
In 2022 Shandong Hi-speed further practiced the concept of "combination of supervision and assistance" carried out field visits actively coordinated with the relevat parties
field visits visits to frontline employees and seminars in various aspects such as the completion of annual operation and continuously optimized relevant plans to solve the
targets regular pandemic prevention and control work safety and handling of key longstanding issues and accurately problem that the staff passage at the toll station was oc-
responded to employees’ needs based on the evaluation results. By the end of 2022 we had organized more than 31 cupied by a new entrance weighbridge so as to protect
seminars and exchanged with or visited more than 100 frontline employees. the life and safety of the staff. During the reporting peri-
od 130 meters of pedestrian guardrails were put in place
in this project.Case The fifth meeting of the third session of the employee representative assembly
Additional staff passage at the Rose Toll Station at the
Taidong Transportation Management Center
In February 2022 the Company organized and held the Fifth Meeting of the
Third Session of the Employee Representative Assembly to enhance the
enthusiasm of employees to participate in corporate management and fulfill
their professional obligations and steadily improve the democratic management
of the Company. After the meeting we further studied the proposals collected an implementation
by the employee representative assembly actively promoted the establishment 5 proposals rate of
and completion of the projects to respond to such proposals and reasonably were settled
improved the corporate production and operation system. A total of 14 100%
proposals were collected from employee representatives at the meeting and
five proposals were settled with an implementation rate of 100%.Employee care
Book box for
Shandong Hi-speed is committed to creating a healthy and happy workplace for its employees and delivering warmth of home to model employees
them. In 2022 the Company followed the internal policies such as the Assessment Measures for Work of Frontline Trade Unions
and the Management Measures for the Selection of Women's Achievements to promote the construction of Workers' Home in
an orderly manner and provide a series of cultural and sports activities such as the Spring Festival Cultural Performance the
calligraphy and photography collection the "New Women of the Era - Her Power" thematic sharing session and basketball "Celebrate the 20th National Congress of
tournament for employees to create a comfortable and good working and living environment for employees and enhance their Fitness activity for employees the CPC and Embrace the Future in Unity"
cohesion and unity. basketball tournament for employees67 Shandong Hi-speed Company Limited 2022 Environmental Social and Governance Report 68
Shandong Hi-speed focuses on the protection of the rights and interests of female employees. In 2022 we actively promoted Case "Women's Achievements" activity
the policy of equal pay for equal work fully met the needs of female employees for career development and self-worth
enhancement and boosted the construction of "Mother Room" and "Women's Achievements" activities. Such efforts have
demonstrated our purpose of "putting people first and benefiting employees." In 2022 Shandong Hi-speed to promote the harmonious development of female employees and set up an example
of their models encouraged all female employees to participate in the "Women's Achievements" competition. In
the activity nine "Women Civilized Posts" and 10 "Model Female Individuals" were selected and received rewards
demonstrating the unique charm of our female employees with the Company.During the reporting period Shandong Hi-speed
helped and conveyed issued more actively coordinated to provide the issued a total of
care to a total of than RMB third-level trade union assistance to RMB
31 employees in 20000 1 employee with a serious illness 63000
difficulty of assistance funds and in difficulty of assistance funds
"Women's Achievements" activity
We continue to organize activities to convey care to employees coordinate support from trade unions for employees in need
and provide relevant supplies in accordance with the actual situation of positions. During the reporting period we raised a total
of more than RMB 2 million in special funds to provide supplies used for anti-pandemic efforts heatstroke prevention in summer
and items to bring warmth in winter for those in special positions such as frontline outdoor toll collectors and road field workers."Delivering Refreshing
Coolness in Summer" activity
"Winter Warmth and Sunshine"
care delivery activity
"Delivering Warmth in the Fight against
the Covid-19" care delivery activity
Employee health and safety
Shandong Hi-speed abides by relevant laws and regulations such as the Law of the People's Republic of China on Prevention
Mother Room by Trade Unions and Control of Occupational Diseases and continues to strengthen occupational health and safety management by organizing
regular medical checkups for employees and providing necessary health and safety supplies to those in special positions to
create a healthy and safe workplace for employees.69 Shandong Hi-speed Company Limited 2022 Environmental Social and Governance Report 7071 Shandong Hi-speed Company Limited 2022 Environmental Social and Governance Report 72
Rural Revitalization Charitable Donations
The year 2022 is key to making sure that the positive results in poverty Shandong Hi-speed guided by the basic principles of compliance with the law voluntary and free efforts clear rights and
elimination are consolidated and become an integral part of rural revitalization. responsibilities honesty and integrity has formulated the Management Measures for External Donation to regulate its and its
Shandong Hi-speed consolidates and expands the achievements of poverty entities' external donations and adopted the management mode of "Unified Leadership Hierarchical Management Budget
eradication comprehensively promotes rural revitalization coordinates Control and Integrated Implementation" to strengthen management in this sector.the supporting policies of districts and counties and promotes coordinated The Company
regional development. In 2022 we actively supported the rural revitalization The Company focuses on elderly care services and continues to strengthen assistance and support for the elderly in need in
in the east-west collaboration between Lixia District in Jinan City and Wulong invested a total of RMB urban and rural areas. We decided to donate RMB 1 million per year to the "Warm Sunset" project set up by Shandong Charity
District in Chongqing City and donated 20000 RMB to the Rural Revitalization 808200 Federation from 2022 for four consecutive years. The donated funds will be used to support about 47000 elderly people in Foundation of Wulong District to support local residents in enhancing their financial difficulties from 39 cities and counties (districts) in the Yellow River basin and 20 key counties for rural revitalization
production and living conditions as well as promote common prosperity. At the to promote rural revitalization providing them with support such as care services and purchasing services from elderly care institutions.same time we improved party building to promote rural revitalization in places
such as North Xiaogao Village Yidukou Town Lingcheng District Dezhou City
and Jiazhai Village Wanghaotun Town Mudan District Heze City to leverage
the "First Secretaries" team in villages to build a model of rural revitalization in
Shandong Province and fulfill our responsibility as a state-owned enterprise. coordinated with relevant
departments to provide RMB
This year Shandong Hi-speed invested a total of RMB 808200 to promote rural
revitalization and coordinated with relevant departments to provide RMB 1.95 million in project funds
million in project funds. 1.95
The Company
donate RMB for from support about
million per year
Case Driving industrial development and promoting economic growth in Jiazhai Village 1 4 consecutive years 39 cities and 47000 elderly
counties (districts) people in financial difficulties
In 2022 the Company assigned the "First Secretaries" team to help Jiazhai Village in Wanghaotun Town Mudan
District Heze City. Jiazhai Village has a relatively old and poorly educated polulation with backward infrastructure and
planning. In the year the "First Secretary" team made efforts to have a deep understanding of the village and public
opinion and then took extensive measures for rural revitalization in nine aspects such as party building rural industrial
development and infrastructure improvement to contribute to building a beautiful countryside. Volunteer Activities
The "First Secretaries" team in Jiazhai Village cooperated with Shandong Agricultural University (SDAU) and Shandong
SDAU Garden Technology Co. Ltd. to establish Heze SDAU Pears Union Cooperative develop the special fruit mature
variety "SDAU Pears" plant 3000 seedlings in an area of 40 mu (1 mu equals to 0.0667 hectares) to build a solid Shandong Hi-speed vigorously promotes the volunteer spirit of "Dedication Care Mutual Assistance and Progress" and
foundation for improving the overall revenue of the village. advocates the good social culture of solidarity love and mutual help.In 2022 we organized various forms of voluntary activities such as blood donation community services and public welfare
promotion across the country to encourage employees to widely participate and actively deliver their care. This year we carried
out the "Safe Summer Vacation" hand-drawn tabloid public welfare activity to enhance children's safety and environmental
protection awareness under four themes namely safety in expressway travel drowning prevention illegal fishing and protection
of the mother river Yangtze River. Also we actively provided community services for instance helping the elderly near our
stations to clean their yards and cleaning up wetland parks to create a harmonious community and take concrete actions to
deliver the warmth of Shandong Hi-speed."SDAU Pear" seedlings73 Shandong Hi-speed Company Limited 2022 Environmental Social and Governance Report 74
Case Activity to care the elderly during the Double Ninth Festival
During the Double Ninth Festival in September 2022
Qufu North Toll Station in Jining City organized an
activity to care the elderly under the theme of "Strong
Red service station Respect for the Elderly during the Double Ninth Festival."
All the employees treat the elderly with great care and
take concrete measures to vigorously carry forward the
traditional virtue of respecting and honoring the elderly
Community services of the Chinese nation. The CPC members and employee
representatives of the toll station visited the old CPC
members working in the canteen employees' old parents
and cleaners and talked with them face to face ensuring
the old people feel the warmth from Shandong Hi-speed. Group photo with the elderly during the Double Ninth Festival
"Safe Summer Vacation" hand-drawn
tabloid public welfare activity
Spring Festival volunteer service activity Fight against the Pandemic Together
Case Blood donation activity
In 2022 in the face of the severe and recurring pandemic Shandong Hi-speed carried forward the work style of "Staying Strict
In March 2022 Shandong Hi-speed organized a True Careful Practical and Fast" assigned responsibilities to all levels and firmly built the defense line against the pandemic.voluntary blood donation activity on the Leifeng Day We struck a balance between pandemic prevention and control and production and operations formulated work security
donating a total of 8800 milliliters of blood to convey the plans and emergency pandemic prevention handbooks in working areas and boosted pandemic prevention and control and
love and care of "Shandong Hi-speed People." personal protection of employees in key areas such as toll stations service areas construction sites and office premises. We
implemented preventive and control measures such as ventilation cleaning disinfection wearing of masks temperature checks
and Health QR Code checks. We strictly enforced 24/7 emergency services the "Daily Report" and the "Report Even in the
Absence of a New Situation" systems for pandemic prevention control and response to ensure that problems are reported and
addressed promptly.Blood donation activity
Case "Delivering Refreshing Coolness in Summer" activity
In August 2022 Zhangqiu Tol l Stat ion of Jinan In 2022 Shandong Hi-speed
Transportation Management Center on the Jinan-
Qingdao Expressway carried out a series of activities
under the theme of "Delivering Refreshing Coolness
in Summer" to provide a comfortable and cool driving
environment for drivers and passengers. During the
activity volunteers provided watermelon chilled mung
bean soup and other "Cooling Down" services for the spent a total of RMB purchased a total of purchased
drivers and passengers and equipped the convenient
service desk with anti-heatstroke items such as Patchouli 7378416.97 126.50 5537252
Essential Oil and fengyoujing an essential balm which on pandemic prevention and control tons of materials pieces of materials
was widely praised. With heartwarming care and careful
services we practiced the mission of "Serving the Public Volunteers send watermelon to drivers and passengers
and Contributing to Society" and showed a good image
of the Shandong Hi-speed on the expressway.75 Shandong Hi-speed Company Limited 2022 Environmental Social and Governance Report 76
Case "Helping Farmers Fight Against the Pandemic" activity Case Taidong Transportation Management Center enforced pandemic prevention and control measures
At the end of 2022 due to the recurring pandemic In 2022 Taidong Transportation Management Center
and low vegetable prices in Shandong Province and continued to enforce the pandemic prevention and
beyond agricultural products in the towns and villages control measures formulated pandemic prevention and
around the Pingdu West Toll Station of Shandong Hi- control guidelines implementation plans and other
speed had no buyers and vegetable farmers were policies built a standardized management system for
facing huge economic losses. On November 28 Pingdu daily pandemic prevention and control and increased
West Toll Station organized employees to participate the stockpile of relevant supplies by purchasing a total
in the activity of "Helping Farmers Fight Against the of 347400 masks 100700 gloves 5900 liters of
Pandemic" in Guxian Town actively helping farmers alcohol for disinfection and 920 liters of 84 disinfectant
to harvest cabbages and attracting their friends and in the year to ensure there was no shortage. The
relatives to participate in the harvesting and purchasing Transportation Management Center regularly organizes
of cabbages on WeChat groups and Moment. nucleic acid tests for all employees in the region to
Eventually they helped local farmers to complete the ensure that frontline toll collectors and inspectors' health Employees were taking nucleic acid tests
harvest and sold nearly 5000 kilograms of cabbages. on duty to further ensure the health of passengers.The efforts were highly praised by the local farmer. Our employees were helping vegetable
farmers to harvest cabbages
Complete the harvest and sold nearly
5000 kilograms of cabbages 347400 100700 5900.00
920.00
Masks Gloves Liters of alcohol for disinfection Liters of 84 disinfectant77 Shandong Hi-speed Company Limited 2022 Environmental Social and Governance Report 78
GRI Index
Disclosure Issues/
Disclosure Disclosure Item Chapter Index Page
Disclosure Issues/
Disclosure Disclosure Item Chapter Index Page
GRI 1: Foundation 2021 302-2 Energy consumption outside the organization Green Construction 50
GRI 2: General Disclosures 2021 302-3 Energy intensity Green Construction 50
2-1 Organizational details About Us 07 302-4 Reduction of energy consumption Green Office 53 54
2-2 Entities included in the organization's sustainability report About the Report 01 302-5 Reductions in energy requirements of products and services Green Construction 48
2-3 Reporting periods frequency and contact point About the Report 01
GRI 303: Water and Effluents 2018
2-6 Activities value chain and other business relationships Social Responsibility Management 13 303-1 Interaction with water as a shared resource Green Construction 48
2-7 Employees Employment Compliance 59 303-2 Management of water discharge-related impacts Green Construction 47 48
2-8 Workers who are not employees Growing Together with Suppliers 44 303-3 Water withdrawal Green Office 53
2-9 Governance structure and composition Corporate 19 303-4 Water discharge Green Construction 49Governance
2-12 Role of the highest governance body in overseeing the Social Responsibility 303-5 Water consumption Green Construction 50management of impacts Management 13 14
GRI 305: Emissions 2016
2-22 Statement on sustainable development strategy Social Responsibility Management 13
305-1 Direct (Scope 1) GHG emissions Green Construction 50
2-29 Approach to stakeholder engagement Stakeholder Engagement 15 16
305-2 Energy indirect (Scope 2) GHG emissions Green Construction 50
GRI 3: Material Topics 2021
3-1 Process to determine material topics Stakeholder
305-4 GHG emissions intensity Green Construction 50
Engagement 17 18
305-5 Reduction of GHG emissions Green Construction 50 56
3-2 List of material topics Stakeholder
Green Investment
Engagement 18
GRI 306: Waste 2020
3-3 Management of material topics Stakeholder Engagement 17 306-2 Management of significant waste-related impacts Green Office 55
GRI 201: Economic Performance 2016
306-3 Waste generated Green Office 55
201-3 Defined benefit plan obligations and other retirement plans Humanistic Care 65 66 67
306-4 Waste diverted from disposal Green Office 53
GRI 205: Anti-corruption 2016
205-2 Communication and training about anti-corruption policies and Integrity and
306-5 Waste directed to disposal Green Office 55
procedures Compliance 23 24
GRI 308: Supplier Environmental Assessment 2016
205-3 Confirmed incidents of corruption and actions taken Integrity and Compliance 23
308-1 New suppliers that were screened using environmental Growing Together with criteria Suppliers 44
GRI 301: Materials 2016
308-2 Negative environmental impacts in the supply chain and Growing Together with 44
301-1 Materials used by weight or volume Green Maintenance 51 actions taken Suppliers
301-2 Recycled input materials used Green Maintenance 51 GRI 401: Employment 2016
GRI 302: Energy 2016 401-1 New employee hires and employee turnover Employment Compliance 59 60
302-1 Energy consumption within the organization Green Construction 50 401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees Humanistic Care 65 66 67 6879 Shandong Hi-speed Company Limited 2022 Environmental Social and Governance Report 80
Disclosure Issues/
Disclosure Disclosure Item Chapter Index Page
Feedback
GRI 403: Occupational Health and Safety 2018
403-1 Occupational health and safety management system Safety Development 42 Dear readers
403-2 Hazard identification risk assessment incident investigation Safety Development 42
Thank you very much for your attention and support to the ESG performance of Shandong Hi-speed Company Limited. To
403-3 Occupational health service Humanistic Care 68 provide you with more professional and valuable environmental social and governance information and further improve the
403-4 Worker participation consultation and communication in
quality of Shandong Hi-speed's ESG report please help us by completing the following feedback form.occupational health Safety Development 43
403-5 Worker training on occupational health and safety Safety Development 43
Humanistic Care
403-6 Promotion of worker health Fight against the Pandemic 68 76
Together 1. Are you satisfied with this report? Please make your comments.
403-7 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships Safety Development 42
GRI 404: Training and Education 2016
404-1 Average hours of training per year per employee Employee Development 62 63 2. Do you think our performance of social responsibility has been fully disclosed?
404-2 Programs for upgrading employee skills and transition assistance programs Employee Development 62
404-3 Percentage of employees receiving regular performance and career development reviews Employee Development 63 64 3. Has the information you want to know been fully disclosed in this report?
GRI 405: Diversity and Equal Opportunity 2016
405-1 Diversity of governance bodies and employees Employment Compliance 60
GRI 406: Non-discrimination 2016 4. What are your suggestions for the improvement of this report?
406-1 Incidents of discrimination and corrective actions taken Employment Compliance 59
GRI 408: Child Labor 2016
408-1 Operations and suppliers at significant risk for incidents of child labor Employment Compliance 59
GRI 409: Forced or Compulsory Labor 2016
409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor Employment Compliance 60
Your Information
GRI 413: Local Communities 2016
413-1 Operations with local community engagement impact Rural Revitalization and assessments and development programs Volunteer Activities 71 72 73 Name:
GRI 414: Supplier Social Assessment 2016 Organization:
414-1 New suppliers that were screened using social criteria Growing Together with Suppliers 44 Title:
414-2 Negative social impacts in the supply chain and actions taken Growing Together with Suppliers 44
Fax:
GRI 416: Customer Health and Safety 2016
416-1 Assessment of the health and safety impacts of product and Quality Service 34 35 36 Tel: service categories
GRI 417: Marketing and Labeling 2016 Email:
417-1 Requirements for product and service information and labeling Road Security and Quality Service 29 3481