ESG |Green brewing, Yanghe shares actively practices ESG

With the further deepening of concepts such as "ecological priority and green development", wine companies are paying more and more attention to organically combining economic and social development with ecological and environmental protection, practicing corporate social responsibilities, and advocating green development of enterprises.

Yanghe's performance in ESG (Environmental, Social, Governance) demonstrates its in-depth understanding and comprehensive practice of high-quality development concepts.

The company is committed to green brewing, energy conservation and emission reduction. The entire chain adopts green production models. The comprehensive energy consumption and greenhouse gas emission intensity per unit of standard liquor continue to decline, and the energy consumption level ranks among the top in the liquor industry.

Large-scale photovoltaic power generation projects will account for 28.17% of photovoltaic power generation in 2022, effectively reducing dependence on traditional energy. At the same time, through systematic projects of waste reduction and cleaner production, it was awarded the title of "National Green Factory", demonstrating its firm commitment to environmental protection.

environment

In terms of water resources management and protection, Yanghe has greatly reduced groundwater consumption by transforming waterway pipe networks, reducing the use of deep well water, and adopting circulating water systems, and the groundwater level has rebounded significantly. At the same time, water resource utilization rate is improved through rainwater collection and other methods, and the water resource recycling rate exceeds 80%. These actions show that Yanghe has paid great attention to the efficient use and protection of water resources, effectively reduced the pressure on groundwater resources, and promoted the sustainable use of water resources.

The entire industrial chain of Yanghe Co., Ltd. adopts a green production model. The comprehensive energy consumption and greenhouse gas emission intensity per unit of standard liquor have continued to decline in the past five years. The energy consumption level per unit of standard liquor is in a leading position in the liquor industry. This shows that Yanghe attaches great importance to energy conservation and emission reduction during the production process, and has effectively reduced the impact on the environment by optimizing production processes and technological innovation.

In terms of clean energy utilization, Yanghe Co., Ltd. has built large-scale photovoltaic power generation projects. In 2022, the proportion of photovoltaic power generation will reach 28.17%. With the average annual increase in output, the increase rate of energy consumption such as electricity is less than the average annual growth rate of output. This move has significantly increased the proportion of clean energy in the energy structure, reduced reliance on non-renewable resources, and met the requirements of low-carbon development.

It is particularly worth mentioning that it pioneered the biogas cycle economic model for wastewater treatment, invested in the construction of a biogas boiler system, and realized the recycling of biogas generated by sewage treatment, which not only created economic benefits, but also reduced carbon dioxide emissions. This innovative practice shows Yanghe's innovative thinking and practical actions in waste treatment and resource recycling, and helps promote the industry to develop in a more environmentally friendly and sustainable direction.

social responsibility

At the social level, Yanghe adheres to the concept of "always leading in soft quality" and continues to invest in research and development resources. It has 10 major technical research and development platforms, 46 national wine masters, 78 provincial wine tasting committee members and 1975 technical personnel to ensure product quality is leading.

Among them, the "Research on the Autophagy and Antioxidant Effects of Soft Liquor" project won the first prize of the "China Food Industry Science and Technology Award", highlighting its leading position in the field of liquor technology. At the same time, build a food safety supervision network to ensure the safety of the entire industry chain from the field to the tip of the tongue and effectively protect consumer rights and interests.

Yanghe actively participates in and invests a large amount of resources in public welfare issues such as helping the needy, helping the weak and the poor, and revitalizing rural areas, seeking dual improvements in economic value and social value.

For example, participating in the "Langre Wine Village" industryaid Tibet, to help common prosperity; join hands with the China Aerospace Foundation and the China Dunhuang Grottoes Protection Research Foundation to assist in the construction of a space power and the "Dunhuang Protection Plan" respectively, demonstrating support for major national strategies and cultural heritage protection.

In emergencies such as the post-disaster reconstruction of Zhuozhou City, Yanghe quickly donated 10 million yuan, showing a strong sense of social responsibility. Due to its outstanding contributions in the field of public welfare, Yanghe was rated as "Outstanding Contributor of the Hope Project in the Past 30 Years" and "Charity Enterprise of the Year on the 2023 China Charity List".

In terms of information disclosure, Yanghe has established a complete information disclosure management system, issued social responsibility reports for 12 consecutive years, and obtained A-level in the information disclosure evaluation of the Shenzhen Stock Exchange for 11 consecutive years, ensuring transparency and good governance, and enhancing the trust of stakeholders.

corporate governance

In terms of corporate governance, Yanghe has established a complete information disclosure management system, disclosed social responsibility reports for 12 consecutive years, and obtained A level in the information disclosure evaluation of the Shenzhen Stock Exchange for 11 consecutive years, showing that the company attaches great importance to transparency and good governance.

Yanghe Co., Ltd. strictly abides by the Company Law, Securities Law and relevant regulations of the China Securities Regulatory Commission, continuously improves the company's corporate governance structure, and establishes modern enterprise systems such as shareholders 'meetings, boards of directors, and boards of supervisors to ensure that the company's operations are legal and compliant. The shareholders 'meeting system is standardized to ensure that all shareholders enjoy equal rights, especially to protect the interests of small and medium investors through the cumulative voting system. The controlling shareholder Yanghe Group Co., Ltd. maintains appropriate boundaries with the listed company, does not interfere with the company's independent decision-making and operations, and maintains independence in terms of business, assets, personnel, institutions and finance to ensure the company's independent operation.

The company's board of directors and board of supervisors are well-constructed, the selection of members conforms to legal procedures, the proportion of independent directors is reasonable, and all directors and supervisors fulfill their duties conscientiously, actively participate in relevant training, continuously improve professional literacy, and ensure the effective operation of the board of directors and board of supervisors. Although the four special committees under the board of directors, namely strategy, audit, nomination, and remuneration and evaluation, have certain deficiencies in the early operation, the company has recognized the problems and plans to further improve its role in corporate strategy, personnel selection, performance appraisal and internal control, etc., in order to improve the company's scientific management level.

Yanghe shares attaches great importance to the construction of performance evaluation and incentive and restraint mechanisms, and implements a salary system that combines the basic annual salary of executives with year-end performance appraisal, aiming to stimulate management enthusiasm and creativity.

At the same time, the company fully respects and safeguards the legitimate rights and interests of various stakeholders including shareholders, employees, and society, strengthens communication with investors through various channels, improves the transparency and timeliness of information disclosure, and ensures fair access to information by all shareholders.

Although Yanghe Co., Ltd. has achieved remarkable results in corporate governance, it is also aware of existing problems and room for improvement. For example, it is necessary to further improve the role of independent directors in the company's operation and management and strengthen the construction of special committees on the board of directors; it is necessary to continue to improve the internal management system and enhance compliance awareness of all employees; it is necessary to strengthen the learning of senior personnelXiTraining to enhance awareness of standardized operations; and the need to continue to strengthen investor relations management to achieve positive interaction with the capital market.

To sum up, Yanghe has performed well in the three dimensions of environment, society and governance. Through continuous innovation and practice, it has successfully promoted the sustainable development of the company and achieved the organic unity of economic, social and ecological benefits.