The Company has established departments and positions responsible for environmental protection, energy conservation and emission reduction. As to environmental protection, the Company has established the Safety, Health and Environmental Protection Committee under the Board of Directors and designated a vice president of environmental protection and a specialized department, Safety Supervision Bureau to integrate the environmental protection functions of the authorities. Each major subsidiary or branch of the Company has its own department or position for environmental protection to execute specific tasks. As to energy conservation and emission reduction, the Company has formed a leading group led by the president of the Company comprising relative departments such as Science & Development Department and heads of subsidiaries and braches, to facilitate the implementation of energy conservation and emission reduction of the Company.

 

The Company has incorporated the objectives of environmental protection, energy conservation and emission reduction into the performance assessment criteria system and set clear objectives and criteria for each subsidiary and branch. The Company has also formulated management rules including the “Planning for Energy Conservation and Emission Reduction during the ‘Eleventh Five-Year Plan’ period”, the “Rules for Data Statistics of Energy Conservation and Emission Reduction” and the “Provisional Rules for Management of Energy Conservation and Emission Reduction”, conducting energy conservation and emission reduction in accordance with the targets of the State for energy conservation and emission reduction for the ‘Eleventh Five-Year Plan’ period. The Company has made aggressive efforts to set up and implement the ISO 14001 environmental management system, and currently the system has been in operation in Shendong Coal Group, Huanghua Port and part of the power plants of Guohua Power Branch. In 2009, the Company rolled out the energy audit and analysis tasks. Third parties were invited by subsidiaries and branches including Shendong Coal Group and Huanghua Port to conduct the enterprise energy audit and satisfactory achievements were made. The four enterprises under the Company participated in the thousand-enterprise energy-saving campaign in China and outperformed all energy-saving target assessments according to the “Announcement of Results on the Assessment of the Performance of Energy-Saving Targets by 1,000 Enterprises in 2008” issued by the National Development and Reform Commission in 2009.

 

The Company carries out large-scale examination on environmental protection regularly to identify potential hazards and problems for environmental protection, impose rectification orders within a prescribed timeframe and conduct repeated inspection at any time. At the same time, the Company has also been active in the promotion, education and training in environmental protection, so as to raise the awareness of its staff on environmental protection and strengthen the sense of social responsibility of the enterprise.