CSEC,China Shenhua(SH:601088) Sou Hu Cai Jing·2025-03-31 06:06Core Viewpoint - China Shenhua has integrated ESG strategies into its governance, development planning, business objectives, and performance assessments for 2024, emphasizing the importance of environmental, social, and governance factors in its operations [2][3]. Governance Structure - The company has established a dedicated committee at the board level for safety, health, environmental protection, and ESG matters, chaired by the chairman, to oversee and manage ESG-related issues [2]. - ESG indicators are included in the annual performance evaluation of management and subsidiaries, with approximately 34.7% of the basic score linked to ESG-related metrics [3]. Financial Performance - In 2024, China Shenhua reported revenue of 338.375 billion yuan, a decrease of 1.37% year-on-year, and a net profit of 58.671 billion yuan, down 1.71% year-on-year [3]. - The company proposed a cash dividend of 2.26 yuan per share, totaling 44.903 billion yuan, which represents 76.5% of its net profit [4]. Shareholder Returns - The company announced a shareholder return plan for 2025-2027, committing to a cash dividend of no less than 65% of the annual net profit and increasing the frequency of dividends [5]. ESG Issues and Ratings - China Shenhua identified 18 ESG issues, with 8 deemed highly important, including risk control, safety production, and climate change response [6]. - The company received an AA rating from Wind for four consecutive years, ranking first in its industry, while its MSCI rating remains at BB, indicating a mixed performance in ESG evaluations [9][10]. Carbon Emission Goals - The company aims for peak carbon emissions by 2030 and carbon neutrality by 2060, with specific short-term targets for 2024 to limit greenhouse gas emissions to 200 million tons [13]. - In 2024, the company reported carbon emissions of 199 million tons, a slight increase of 3.89% year-on-year, with the majority of emissions coming from its power generation sector [16]. Regulatory Compliance - As a listed company on the Hong Kong Stock Exchange, China Shenhua faces regulatory pressure regarding ESG disclosures, particularly concerning Scope 3 emissions, which will be mandatory starting in 2025 [17][18]. Carbon Management Initiatives - The company has implemented a comprehensive greenhouse gas reduction management system, promoting clean energy and adopting various carbon reduction technologies [19]. - In 2024, the company captured 26,000 tons of CO2 through its carbon capture, utilization, and storage (CCUS) operations and traded 7.585 million tons of carbon allowances [20].