Climate change has a profound impact on socioeconomic development and business development while changing and affecting the global ecosystem and natural environment. The Group integrates climate change management into the company’s business development through more systematic governance, more comprehensive strategies, more robust risk management, and clearer objectives. This approach aims to effectively adapt to and mitigate the impacts of climate change.
The Group has established a “unified command, standardized and orderly, scientific and efficient” winter snow removal emergency management system, coordinating snow removal preparations and initiating snow removal across all regions and projects. We have strengthened the emergency response to winter snow removal by organizing comprehensive snow removal operation training, compiling detailed operation manuals, and strictly supervising snow removal drills in each project. This ensures that in actual operations, we can “prepare in advance, rehearse in advance, and be in place in advance.” Faced with three major temperature drops in November of 2023 and extreme cold weather in December of 2023, the Group successfully completed snow removal operation tasks across various regions and projects including Beijing, Hebei, Shandong, Inner Mongolia, Shanxi, Shaanxi, Gansu, and Ningxia, earning high praise from local governments.
In response to the increasingly severe challenges of climate change, the Group actively upgrades heatstroke prevention and cooling measures, with refined optimization for positions with high physical labour intensity. In the Jiangxi Beikong project, the team paid special attention to the particularities of the disassembly work station. By extending the water-cooled air ducts, the cooling effect was enhanced to ensure that employees remain comfortable in high-temperature environments. At the same time, work hours were flexibly adjusted to avoid peak heat periods, with increased rest times to safeguard employee health and work efficiency. Additionally, we equipped disassembly workers with air-conditioned vests equipped with fans, effectively reducing body surface temperatures and providing a cool working environment, which set a good example for summer heatstroke prevention and cooling efforts.
By establishing a flexible and efficient environmental sanitation emergency support system, the Group ensures the smooth implementation of various emergency work tasks in extreme weather such as snow removal, flood prevention and typhoon. The Group adopts the “people, objects and things” emergency mode and uses the intelligent sanitation management system to form an all-weather emergency team with practical skills, rich experience and excellent conduct; the Group also adopts “environmentally friendly, efficient, and safe” emergency equipment and measures to ensure all emergency operations are carried out effectively.
Heavy rainfall: In response to the impact of heavy rainfall on the projects during the flood season, the Group issued the Notice on Strengthening Urban Flood Control (《關於加強城服防汛工作的通知》), requiring projects to increase their awareness of flood control responsibility, establish a flood control system of organization and guarantee, conduct emergency rehearsals in advance, prepare flood control material reserves, strengthen flood control on-duty, ensure the safety of flood control personnel, submit flood control information effectively, and ensure the implementation of measures from all aspects. In the face of the heavy rain in Dingxing County in July 2022, Dingxing project reacted quickly and dispatched more than 400 sanitation workers, 6 water trucks, 5 cleaning trucks, 7 trucks, thoroughly cleaned up the dirt and silt on the road with serious waterlogging, and removed roadblocks to ensure road traffic safety and restore the appearance of Dingxing.
Typhoon: For typhoon in South China, the Group organized several projects in South China to cope calmly. During the passing of Typhoon “Siem ba”, the Maoming Project sent compression vehicles for more than 100 times, and removed more than 50cars of broken branches, fallen leaves and more than 100 tons of household garbage caused by the typhoon. The Xinhui Project dispatched 3,804 person-time sanitation operation personnel, 612maintenance vehicles and three-wheel electric cleaning vehicles, found and treated 347 fallen trees and broken branches, and cleared 754 manholes and 71 drains.
Heavy Snow: In order to effectively complete the heavy snow clearing work and minimize the adverse impact of snow and ice weather on urban traffic, each project of the Group shall carry out the snow clearing and deicing work orderly according to the different snowfall amount, so as to minimize the impact of snowfall and ensure the smooth road. During the snow weather, the project is fully prepared to keep the communication of personnel at all positions, ensure that the mechanized snow clearing and snow melting equipment is in place, and carry out the snow clearing and deicing line drill before the snow. In 2022, Shenyang Huanggu Project made full use of the newly purchased small multifunctional electric snow remover, and for the first time adopted the continuous operation mode of “electric snow remover + manual combination” in back streets and alleys to improve the efficiency of snow removal. During the snowfall period, more than 800 people were dispatched, more than 80vehicles were dispatched, and more than 30 tons of snow melting agent were used to ensure the safety and smooth travel of the general public in the morning rush hour.
In 2024, facing the challenge of extreme weather, the Group responded quickly, efficiently carrying out emergency support work to ensure urban safety and the smooth flow of citizens’ travel.
• Cold rain and snow freezing weather:
In the Xiuwen, Dali and Linyao projects, the Group immediately activated contingency plans and adopted a mode of “machine based, manual support and man-machine integration” to comprehensively clear snow from the roads. The Xiuwen project dispatched three emergency vehicles, allocated shovels, snow-melting agents and other materials, and organized staff to fully engage in snow removal operations, ensuring that “roads are passable during snowfall and cleared after the snow stops” to ensure the safe and stable operation of the urban area. The Dali Project, based on the Dali Project 2023-2024 Snow Removal and Ice Clearing Plan, focused on clearing bus stops, hospitals, supermarkets, schools and other areas to ensure road safety and smoothness. The Linyao Project ensured the smooth flow of the city’s main roads and key areas through mechanical snow removal and the application of thawing agents.
• Typhoon weather:
At the Xinhui project in Southern China region, the Group pre-deployed and adopted a scientific wind defense strategy to ensure urban safety. The sanitation and park departments jointly cleared and unblocked urban drainage outlets and channels, trimmed and strengthened tall trees, and eliminated potential safety hazards. In September 2024, as Typhoon “Mojie” approached, we initiated the emergency plan 10 days in advance, conducted safety inspections, strengthened emergency material reserves, and organized emergency rescue teams. After the typhoon landed, sanitation workers cleared debris on the road, and garden workers dealt with fallen trees, quickly restoring urban order.
• Heavy rain weather:
In the northwestern region, facing severe storms, the Group quickly initiated the emergency mechanism to ensure citizens’ smooth travel. The Longnan project arranged for 300 sanitation workers to be on duty, using a “mechanical + manual” model to stage-clear road surface waterlogging, mud, and garbage, utilizing loaders, sweeping vehicles, and other equipment for efficient operations, and conducting special unblocking of drainage outlets. After the sudden attack of heavy rain and hail, the Linyao project organized over 400 sanitation workers to carry out cleaning work in the rain, and jointly deployed sludge removal vehicles, loaders, and other machinery, clearing 42 tons of tree branches and leaves in just 3 hours to restore road traffic, and restored the smooth flow of traffic on the road.
In August 2024, to combat the high incidence of dengue fever season, the Xinhui project company in the Southern China Region launched a “100-Day Attack” campaign for mosquito prevention and elimination. We aim to prevent the occurrence and spread of dengue fever from its source. Every day, we carry out disinfection in more than 2,000 key areas such as waste transfer stations, parks, squares, and community green belts, blocking the pathways of dengue fever transmission. At the same time, we carry out the “Waste House Duty Guidance” action, arranging management personnel to guide residents in the peak hours to properly dispose of waste, creating a positive atmosphere for active participation in environmental sanitation improvement and joint prevention and control of dengue fever.
In September 2024, in the face of the severe typhoon “Mojie” that hit Hainan Province, the Group quickly carried out on-site rescue work and donated 200 garbage bins to the Hainan Provincial Housing and Urban-Rural Construction Department to support garbage clearance and environmental improvement work in the disaster area. At the same time, the Group’s Xinhui project quickly established a volunteer rescue team, cleared roadblocks, cleared roads, and transported and disposed of domestic garbage, helping Chengmai County restore normal production and living order.
For our generous donation and timely rescue operations, the Jiangmen Urban Management and Comprehensive Law Enforcement Bureau, as well as the Wenchang Environmental Sanitation Management Center and other departments, have issued letters of appreciation to express their gratitude, and highly praised our spirit of social responsibility displayed in this rescue.
In 2025, the Group promptly activated its emergency response mechanism to address extreme weather events, efficiently completing various support tasks, securing urban safety, and ensuring smooth travel for citizens.
• Typhoon Conditions
In September 2025, during the passage of Typhoon “Hua Jia Sha”, strong winds and heavy rain severely affected areas such as Baoan, Nanshan, and Dongxiao in Shenzhen, leading to issues including fallen trees, clogged drainage grates, waterlogging on roads, and accumulated waste. The Group’s South China region responded immediately to the deployment of government authorities, swiftly activating the post-disaster emergency response plan, organizing all personnel to engage in emergency rescue and recovery work. They promptly cleared road surfaces, unclogged drainage facilities, and removed waste, effectively ensuring the urban appearance and resident travel safety after the disaster.
• Heavy Snowfall:
During the snowfall in December 2025, the Zibo project in the Group’s Shandong region tracked snow conditions in real-time through a meteorological monitoring system, convened a special snow and ice removal meeting in advance, and clarified safety protocols and scientific snow-clearing procedures. We coordinated the deployment of 43 large snow removal machines and 1,300 sets of auxiliary tools, stockpiled over 500 tones of de-icing agents, and all equipment was stationed at operational points in advance, standing by 24 hours. Following the snowfall, scientific dispatching was carried out through the “One Network Unified Management” platform, implementing an operation model of “machinery as the primary approach, manual as supplementary”, and conducting snow removal in accordance with the priority principle of “viaducts first, roads later”. This operation involved a total of over 2,000 cleaning personnel, deployed 35 snow rollers, 11 spreaders, and over 20 small snow rollers, consumed more than 190 tones of de-icing agents, and efficiently completed snow removal tasks on main and secondary roads, pedestrian walkways, and other areas, effectively ensuring smooth urban roads and safe travel for citizens.
• Heavy Rainfall:
In July 2025, the Banan project experienced torrential to exceptionally heavy rainfall. The Group immediately activated its flood control emergency response plan and actively cooperated with the Banan District Urban Management Bureau to carry out emergency rescue. All members of the departmental emergency response teams were on duty, conducting comprehensive inspections of street trees, drainage outlets, and municipal facilities, and implementing emergency measures for issues such as fallen trees, blocked sewers, waterlogged roads, and damaged facilities. At the same time, 43 sprinkler trucks, 31 mechanical sweepers, 13 dump trucks, 9 waste compression trucks, 4 forklifts, and 50 small high-pressure washing trucks were deployed. Employing a “human-machine collaboration” model, approximately 160 tones of waste were processed, 60,000 square meters of silt were cleared, and over 1 million square meters of emergency sweeping were carried out during the flood season, saving valuable time for the rapid restoration of traffic.
• Persistent High Temperatures:
In July 2025, the Pizhou project implemented a systematic internal control enhancement action based on the high-temperature emergency response plan to cope with persistent high temperatures. We strengthened workers’ heatstroke awareness through special training, enabling them to master heatstroke self-rescue methods. We continuously distributed heatstroke prevention supplies such as Huoxiang Zhengqi liquid, cooling oil, purified water, and ice cream, ensuring that the air conditioning, drinking water, and supplies at sanitation worker stations were adequately available. At the same time, we implemented pre-shift health monitoring, suspending work for workers experiencing symptoms such as dizziness and nausea. We dynamically increased the frequency of mechanical sweeping to reduce the time workers were exposed to high temperatures. Through systematic protective measures and scientific operational scheduling, the Group effectively reduced the risks of working in high-temperature conditions, safeguarding the health and safety of sanitation workers and ensuring the stability of urban environmental services.
To comprehensively manage climate-related risks, the Group has secured All Risks Construction Insurance (2009 Edition) for all ongoing construction projects. This insurance covers a wide range of climate-related risks, including earthquakes, tsunamis, lightning strikes, torrential rain, floods, storms, tornadoes, hail, typhoons, hurricanes, sandstorms, blizzards, ice jams, sudden landslides, collapses, mudslides, sudden ground subsidence, and other force majeure risks. This enhances the projects’ resilience against climate uncertainties and demonstrates the Group’ s forward-looking commitment to green development and risk management.
