The outbreak of COVID-19 in 2020 has significantly impacted on global economy and people’s livelihoods. As a leading cross-regional integrated energy service providers in China, the Group has moved forward despite adverse situation under COVID-19. With our determination to serve society and our cohesive group of employees, the Group has been steadily improving its governance level and achieving success consistently. China Gas has always taken “Converging in Harmony and Benefiting the Society” as the development goal. While realising our own economic value, the Group is committed to attaining safe, energy-saving and environmentally friendly energy production and supply. We are eager not only to bring better services, but also to strike a balance between resource extraction and environmental harmony, and to protect the Earth — the home of mankind.

China Gas is committed to providing customers with safe and reliable gas, as well as high-quality services. Meanwhile, the Group is actively grasping development opportunities of new energy and related businesses, including city and township gas, value-added services, liquefied petroleum gas (“LPG”), Smart MicroGrid, Urban Heating projects, natural gas distributed energy, distribution and sales of electricity, charging piles, photovoltaic, integrated energy supply projects and “replacement of coal with gas” projects. The Group uses clean energy to reduce carbon emissions caused by coal combustion, in order to further solidify the Group’s green energy business within the industry, and help achieve the national goal of “Carbon Peak” and “Carbon Neutrality”.

2020 is the year for China Gas to achieve digital reform by digitalisation and comprehensive use of cloud for business. The Group carried out direct sale of agricultural products to 45,000,000 urban and rural users through “China Gas Smart Living APP” and the e-commerce system targeting poverty alleviation. The Group also conducted full life cycle analysis through smart cloud platform and energy supply and demand. The Group extended exclusive LPG and supply technologies to rural areas, so as to facilitate the adjustment of local energy structure. Moreover, China Gas provided heating to residents in southern China and used IoT cloud platform technology to allow real-time monitoring and early warning. At the 2020 International Science and Technology Innovation Festival and the Global Digital Conference with the theme of “Innovation-led Digital Empowerment”, China Gas won the 2020 Digital Innovation Award. In the future, the Group will continue to accelerate the development of digitalisation, network technologies and intelligent-building technologies of our business. The Group will further integrate and connect its various digital platforms, in order to achieve more efficient digital resource sharing, and to set the digital benchmark of “smart energy” in the industry.

China Gas adheres to the principle of “People-oriented and Strive for Excellence”. As a public enterprise, the Group integrates “Caring for the Community” into our daily operations. Through China Gas Charity Foundation Limited (the “Foundation”), the Group has actively carried out charitable activities to help vulnerable groups, including educational and medical sponsorship, disaster relief, poverty alleviation and established a volunteer service team within the Group to promote “Converging in Harmony and Benefiting the Society”. During the pandemic, China Gas actively allocated human and material resources to provide safe and reliable gas supply, donated funds and materials to groups and institutions in need and provided daily necessitites to the people. During the year, China Gas was awarded the 2020 Social Responsibility Outstanding Enterprise Award and the 2020 Economic Contribution Award, in recognition of our philosophy and efforts in giving back to society.

As an employer, China Gas strives to implement corporate culture with our employees and be a role model for the industry. The Group continues to build a diversified career development platform for employees and provide a good working environment, competitive remuneration and benefits, comprehensive career development training and a variety of recreational and leisure activities for employees to fully unleash their potential.

In FY2020/21, China Gas was included in the Hang Seng Shanghai-Shenzhen-Hong Kong (Selected Companies) 300 Index and the Hang Seng Corporate Sustainability Benchmark Index. The latest ESG (environmental, social and corporate governance) annual rating from Morgan Stanley Capital International (“MSCI”) was upgraded from BB to BBB, reflecting the highly recognised performance of the Group in environmental protection, social responsibility and corporate governance among the capital market. On 19 June 2021, the Group signed the Memorandum of Understanding with the United Nations Environment Programme (“UNEP”) and joined the Oil and Gas Methane Partnership (“OGMP”), becoming the first OGMP member company in China.

The Group will celebrate its 20th anniversary in the year of 2021. In the coming year, China Gas will continue to fulfill the four major responsibilities regarding economy, environment, social and corporate governance through innovation, coordination, going green, openness and sharing. Meanwhile, we will actively support the Sustainable Development Goals of the United Nations and fully fulfill our responsibilities as a corporate citizen, so as to create greater value for our stakeholders.

Corporate Social Responsibility

In 2020, in order to further improve the management of sustainbale development of the Group, we have established the Sustainability Committee to continuously enhance the Group's performance in sustainable development. The Sustainability is led by Mr. Liu Ming Hui, the Company's chairman, managing director and president, as the chairman and Mr. Zhu Weiwei, the Compaby's executive director and managing vice president, as the vice chairman of the Sustainability Committee. We will continue to improve the Group's management system pertaining sustainability and strive to accelerating the Group's progress towards sustainable development. Please refer to "Sustainable Corporate Governance" of this Report for further information on the Sustainability Committee.