China Gas Holdings Limited

(the “Company”)

Environmental Policy

1.     Instruction

The Company and its entities that adopt the management and control system of the Company (“China Gas Group” or the “Group”) are proactively contributing to the sustainable development of the environment, while identifying changes in environmental-protection trends to make responses correspondingly. China Gas Group is committed to reducing the risks for and impacts on the environment from its operations, business facilities, distribution and logistics, due-diligence, mergers and acquisitions (if applicable), and its products and services.

This policy applies to China Gas and all its subsidiaries. It also applies to all suppliers, contractors, joint ventures and other business partners providing products and/or services to the Group.

2.     Undertakings

The Group is committed to:

·       complying with all environment-related laws, regulations and standards in business operations;

·       minimizing its risks for and impacts on the environment and continuously improving its environmental performance;

·       setting targets to reduce its impacts on the environment;

·       conducting regular environmental monitoring and risk assessments;

·       raising internal and external stakeholders' awareness of environmental management policies and impacts on the environment through educational activities and awareness campaigns;

·       enhancing employees’ awareness of the impacts of work on the environment through trainings; and

·       establishing a long-term mechanism of clean production, and performing well in pollution prevention and ecological protection in accordance with the principle of "persons-in-charge always responsible" in light of the priorities of reduction from the source, in-process control, and end-of-pipe treatment.

Energy

Committed to offering clean energy and improving energy efficiency, continuously optimizing the energy structure, and gradually building a clean, low-carbon, safe and efficient energy structure, to reduce energy consumption throughout the operating cycle and the value chain.

Greenhouse Gas and Pollutant Emissions

Reduce the anthropogenic greenhouse gas emissions and pollutant emissions from projects with measures based on the nature of projects and the degrees of impacts.

Resource Utilization and Waste Management

Establish a sound waste management system to control and manage waste in all operation processes to ensure that corporate waste discharges are in conformity with national standards and requirements. Implement resource utilization measures such as waste classification, reduction and recycling to improve overall resource utilization.

Water Resources Management

Committed to protecting water resources, saving water, and improving water use efficiency, the Group is further strengthening its management and monitoring of water pollution prevention and control, introducing more and better wastewater treatment facilities for sewage treatment more efficient, and vigorously promoting sewage treatment measures such as "reduction, classification, treatment, and utilization".

Noise Control

Use low-noise equipment or take effective measures to prevent or reduce noise pollution to the environment.

Biodiversity Conservation

Fully implement the management and protection of biodiversity to ensure that all Group members comply with the Biodiversity Protection Policy, take into account the biodiversity factors related to their business operations, and take specific measures to facilitate the restoration of ecosystems. Please refer to Biodiversity Protection Policy for further details.

3.     Implementing, Monitoring and Reporting

Under the Sustainability Committee, the Sustainability Committee Leadership Team consists of senior management and executives from different departments within the Group, including the Board Office, Capital Management Department, Audit and Supervision Department, Legal and Compliance Department, Safety Supervision Department, etc., in effective coordination to implement environmental management.

The Sustainability Committee, responsible to the Board of Directors, reports to the Board of Directors on a regular basis, supervises the implementation of the Group's environmental policies, provides recommendations to the Board of Directors on major environmental decisions, and deals with major accidents that occur.

The Group evaluates this policy on a yearly basis, with evaluation results submitted to the Sustainability Committee for timely responses.

4.     Date of Adoption

This policy was issued for implementation in December 2022, and will be updated in due course.