China Gas Holdings Limited

(the “Company”)

Biodiversity Protection Policy

1. Introduction

Biodiversity refers to the variety of life: the diversity of all living organisms from the various ecosystems[1]. The Company and its entities that adopt the management and control system of the Company (the “China Gas Group” or the “Group”) understands the significance of preventing biodiversity from potential disappearance and natural environment from degradation, and how they closely relate to climate change. China Gas Group ensures that the Group members will take into account the biodiversity factors related to their business operation, and implement relevant measures to facilitate the recovery of ecosystems.

2. Implementation of the Policy

According to applicable laws and regulations, biodiversity protection policy is implemented in the following ways:

（1） in the early stage of the engineering construction project, environmental impact assessment (“EIA”), safety pre-assessment and social stability risk assessment will be carried out. During the project implementation, according to the requirements of the environmental management plan, safety pre-assessment and social stability risk assessment in the EIA will be carried out. After the construction project, checking and inspection according to the requirements of EIA, safety pre-assessment and social stability risk assessment will be carried out.

（2） project site selection shall avoid districts within the ecological protection red line, insist on reasonable planning, minimize land requisition area under the circumstance of compliance to the standard safety distance.

（3） during the process, strictly follow through the construction noise pollution prevention initiative, arrange operation time scientifically and plan and use construction machinery in a reasonable manner.

（4） materials piling during construction shall be covered, sprinkled with water or coating agent, or take other dust proof measures to reduce the influence of fugitive dust.

（5） all the waste shall be classified and managed. Non-toxic, harmless and recyclable waste shall be recycled and reused.

（6） In respect of construction work near the building red line or residential areas, sunshade net shall be set to block light from illuminating to the residential areas.

（7） confirm the construction range before the construction begins, grasslands, trees, and other plants outside the construction area shall not be damaged for the convenience of construction.

（8） restore the earth surface and soil upon the completion of project, reducing the impact of soil erosion.

3. The Group's Undertakings

The Group undertakes to:

（1） minimize disturbance, degeneration and indirect impact on the habitat during the operation process.

（2） protect forests, forbid illegal development of districts covered with forests and conservation areas of high ecological value, in the meantime, the Group's suppliers are encouraged to follow through the requirement not to fell forests, and plant grass and trees in soil that are suitable to be afforested to reduce the time that the soil is left as bare land.

（3） enhance the publicity of biodiversity protection among the staff of China Gas Group, promote the recognition of biodiversity, encourage staff to play an active role in tree planting activities organized by the government and social groups.

（4） fully respect the informed consent right of indigenous people and communities, and run the business on lands with legal right, public right and traditional right.

（5） ensure that there are no pending matters regarding compensation and resettlement and support between the land that the local government provides and the previous owners. As determined by the Group, if the projects to be invested require involuntary resettlement of people, the Group will solve and deal with the problems arising from such involuntary resettlement according to the provisions of the “Resettlement Planning Policy”.

（6） encourage Group member to carry out or take part in public welfare projects such as biodiversity protection, river course cleaning, afforestation, protection of rare species etc; in the meantime, encourage contractors and suppliers to take initiative to carry out and take part in the aforementioned projects.

4. Date of Adoption

This policy was issued for implementation on 10 May 2013, and will be updated in due course.

[1]Quoted from The International Union for Conservation of Nature.