Address：No. 196 Fuqiang Road, Nanhu District, Jiaxing, Zhejiang Province, China
Zip code：314050
Telephone：(+86)573-8222 9096
E-mail：esg@weixing.com.cn
Official website：https://www.stl-chem.com/
CATALOGUE
Contents
Quality to Foster an Excellent Governance to Seek Long-Term
About This Report 01 Brand Steady Growth
About STL 03 Creating Premium Products 13 Insisting on Business Compliance 37
Message from the Chairman 03 Improving Customer Service 29 Intensive ESG Governance 48
Company Profile 06 Practicing Responsible Procurement 30
Our 2022 07 Boosting Industry Development 32
Annex Eco-friendliness to Create a Better People-Centricity to Build a
Home Harmonious Society
Future Prospects 95 Strengthening Environmental Management 55 Empowering Employees’ Development 80
ESG Performance Indicators 96 Optimizing the Use of Resources 61 Fulfill Social Responsibility 92
Pollution Emissions Control 68
SATELLITE CHEMICAL CO., LTD.
ABOUT THIS REPORT
About This Report
Overview Boundaries Information Sources
This is the third annual Environmental, Social Temporal boundaries of the Report: January The information and data disclosed in the Report are from the Company’s statistical
and Governance (ESG) report of Satellite 1, 2022, to December 31, 2022 (hereinafter information or official documents. The currency amounts involved are measured by the
Chemical Co., Ltd. (hereinafter referred to as referred to as the "Reporting Period"). Some Renminbi (hereinafter referred to as the "RMB").
the "Report"). The Report provides a factual information may extend beyond the Reporting
and objective account of Satellite Chemical Period. The Report is the annual report.
Co., Ltd.’s sustainability activities in 2022, Organizational boundaries of the Report: The
with a focus on its social, environmental, and Report covers Satellite Chemical Co., Ltd.
governance performance. unless otherwise specified.
Preparation Basis Confirmation and Approval
Shenzhen Stock Exchange Guide No.1 on Self-Regulation of Listed Companies: Standardized Operation The Report was prepared by Satellite Chemical’s ESG report compilation team and approved
of Companies Listed on the Main Board by the Board of Directors for release on April 28, 2023, upon confirmation by the management.
Shenzhen Stock Exchange Guideline No.1 on Self-Regulation of Listed Companies: Business Matters
(Revised in February 2023)
Shenzhen Stock Exchange Guide on the Environmental, Social and Governance Disclosure of Listed
Companies (Consultation Paper)
References Access and Feedback
For the convenience of presentation and reading, the "Company", "STL" and "we/us" in the Report refer The Report is available in both simplified Chinese and English. In case of discrepancies
to "Satellite Chemical Co., Ltd." and its subsidiaries. Other references are as follows: between the two versions, the simplified Chinese version shall prevail.Your comments are
valuable to us and will help us improve our ESG performance. Please feel free to contact us.
Lianyungang Petrochemical refers to Lianyungang Petrochemical Co., Ltd.
Satellite Energy refers to Zhejiang Satellite Energy Co., Ltd. Telephone: (+86) 573-8222 9096
Pinghu Petro Chemical refers to Pinghu Petro Chemical Co., Ltd.
E-mail: esg@weixing.com.cn
Satellite Science & Technology refers to Satellite Science & Technology Co., Ltd.
Official website: https://www.stl-chem.com/
Hubei Satellite refers to Hubei Satellite New Materials Co., Ltd.
Address: No. 196 Fuqiang Road, Nanhu District, Jiaxing, Zhejiang Province, China
STL USA refers to Satellite Chemical USA Corp.
SATELLITE CHEMICAL CO., LTD.
About STL
Message from the Chairman
The year 2022 was one of recovery and resumption. From a start-up on the shores of the South Lake, we
have remained true to our original mission of "chemicals make a better life" and have insisted on green and
low-carbon development. Following national industrial development strategies and the business philosophy
to "contribute STL quality products, create a better life", we have realized numerous major technological and
product innovation results and comprehensive, in-depth, and fundamental management innovations and
changes. Now, we are firmly moving forward with our Double Five-Year Plans, aiming to "create a future with
science and technology and build a low-carbon chemical sci-tech company of new materials based on the
light hydrocarbon integration", among other accomplishments.
Throughout the year, all STL employees worked together with unified wisdom and strength under the In the year, STL stayed firmly true to its original aspiration of green development.
strong leadership of the Company’s Board of Directors. We followed green and low-carbon development
principles and guided our business with the concepts of "technology leading" and "management leading". We We adhered to the safety and environmental protection principles that "safety is more important than profit"
accelerated project development and technological innovation by fully leveraging our advantages provided by and "taking environmental protection seriously as our products". As the largest company of the green and
industrial chain integration. We achieved satisfactory results through hard work and perseverance in the face low-carbon comprehensive utilization of raw materials in China, STL acted in accordance with the carbon
peaking and carbon neutrality strategies and implemented numerous carbon-reduction measures for green
of adversity. The Company’s operating income in 2022 was RMB 37 billion , and its net profit exceeded and sustainable development. These initiatives led to STL’s inclusion on the "Green Manufacturing List 2022"
RMB 3 billion, indicating steady progress toward the strategic goal of "building a low-carbon chemical sci- of the Ministry of Industry and Information Technology of the People’s Republic of China and infused the
tech company of new materials". Company’s high-quality development with a strong green impetus.
In the year, STL made solid progress in project development. In the year, STL added vigor and vitality to its workforce.
The Lianyungang Petrochemical Olefin Comprehensive Utilization Project was fully operational as a result of We put the development concept to "create a future with science and technology" into action by introducing
our determination and hard work day and night, creating a benchmark and model for safe, environmentally leading and high-caliber experts and deepening our collaboration with universities. We maintained the core
friendly, and low-carbon development in the chemical industry. Simultaneously, we continued to strengthen values that "the company grows together with its employees and society" and established a comprehensive
our industrial presence, with a strong emphasis on expanding the comprehensive utilization of light human capital management system. We increased recruitment channels and provided intensive and targeted
hydrocarbons such as C2 and C3. Furthermore, we increased the capacity of our three major business training for our workforce to build capacity, relying on the Company’s strengths. This change enabled STL
segments: functional chemicals, polymer new materials, and new energy materials. As a result, we boosted employees to develop a strong sense of vitality, cohesion, and influence, as well as realize the common goal
STL’s high-quality development and raised the industry’s standard. of achieving happiness through struggle.
SATELLITE CHEMICAL CO., LTD.
Company Profile
In the year, STL rolled out its strategy for internal and external governance.
We investigated the design and implementation of a high-level corporate governance system and established
the business concepts of "technology leading" and "management leading". We created a three-in-one
corporate governance structure, a solid ESG governance structure, and a corporate governance mechanism STL began its business with acrylic acid polymer new materials. New chemical materials have dominated our
with clearly defined responsibilities, efficient operation, and seamless synergy, resulting in a comprehensive evolution since then. We have stayed true to our mission that "chemicals make a better life" over the years,
and solid three-dimensional governance network of STL. focusing on the real economy and our profitable business. We have extended to the upstream to secure
upstream raw materials, paving an innovative path not taken by our peers, and set a development strategy
to "build a low-carbon chemical sci-tech company of new materials based on light hydrocarbon integration".
We have launched applications in aerospace, rail transport, infrastructure engineering, automobiles, new
energy, semiconductors, furniture, textile, and home care while working in functional chemicals, new energy
In the year, STL achieved innumerable fruits in public welfare. materials, and polymer new materials, creating colorful fine products for a better life.
We took the initiative to assume responsibility for common prosperity in response to the guiding principles of
General Secretary Xi Jinping’s important speech on common prosperity. We launched the Jiaxing STL Public
With science and technology, we shape the future. STL invested over RMB 1.238 billion in R&D
Welfare Fund, the first named after the Company, as well as ongoing programs to assist the elderly, students, in 2022, a 15.14 % increase year on year. We achieved technological innovation and optimization,
ensuring the completion of the Lianyungang Petrochemical Phase II project in August 2022. We also
people with disabilities, and the needy. All of this was part of STL’s efforts to promote common prosperity.
made significant advances in developing key and core technologies and completing the construction of a
We achieved satisfactory results in 2022 while remaining pragmatic and putting the diligence, innovation, 1,000-metric-ton/year α-olefin industrial pilot plant. We hastened the construction of STL’s future
and foresight of STL staff members into action. We demonstrated through high-quality development that R&D center in order to create a new platform to "create a future with science and technology".
"integrating the leadership of the Communist Party of China (CPC) into corporate governance is a right
direction for STL" and "injected impetus for STL’s business" with a quality improvement. We have worked hard to increase our human capital. STL had a technical R&D team of 992 people in
According to a proverb in Chinese, "In a boat race, those who row the hardest will win". At a new starting
human resources as capital for future growth. Since its initial public offering, the Company has introduced
point in 2023, STL will work to achieve qualitative changes. We will work harder to advance "management
leading" and "technology leading", with the goal of fostering the "H?" culture. We will continue to provide 3 restricted stock award schemes, 1 employee stock ownership scheme, 1 business partner stock
the Chinese manufacturing sector with role models of green, low-carbon, and high-tech development by ownership scheme, and 3 virtual equity awards for business units. It has established a modern management
firmly focusing on industry and practice. Closely adhering to China’s solemn pledge to "peak carbon dioxide mechanism with value incentives and responded to the national policy on demonstration zones for common
emissions before 2030 and achieve carbon neutrality before 2060", we will contribute the STL power to prosperity by establishing a value platform for employee common prosperity.
addressing global climate and environmental issues. We will live up to our corporate mission that "chemicals
make a better life" and share the "beauty of chemistry" with the world. "Never forget why you started, and you will be able to complete your mission". STL has developed an
advantage of industrial chain integration, beginning with polymer new materials. We are going deeper
with innovations in the field of new low-carbon chemical materials, striving to be a sci-tech company that
generates taxes for society, benefits for shareholders, and income for employees, and realizing the mission
that "chemicals make a better life"!
SATELLITE CHEMICAL CO., LTD.
February 15, 2022 February 21, 2022 March 5, 2022 May 28, 2022 July 21, 2022 August 8, 2022
The 2# plant for superplastic Lianyungang Petrochemical's STL and Jiaxing Xiuzhou High STL’s refined acrylic acid STL's new product promotion Aceremony was held in
new materials was put into Green Chemical New Material School held a signing ceremony project with an annual capacity conference, with the theme Lianyungang for the contract
operation, marking STL’s Industrial Park project was for the pairing agreement, of 200,000 metric tons saw of "Always Be with You", was signing the 40,000-metric-ton/
official entry into differentiated officially launched. The project is under which SLT donated the contract officially signed, concluded in Changsha. More than year high-end packaging new
and high-end fine chemical a downward extension of the light RMB 1 million to promote enhancing the comprehensive 100 representatives, experts, and material project (EAA) jointly
new material products derived hydrocarbon integration industry education and training for ethnic strength of the integrated researchers from the construction, launched by STL and SK Group.
from ethylene oxide. chain to further deep processing of minority students, improve industrial chain of acrylic acid energy, and macromonomer It marks the first EAA production
Lianyungang Petrochemical's C2 their education facilities, and and downstream new materials. industries gathered together to base being launched in Asia.
products, effectively increasing the establish an education incentive explore the road of development
added value of the products. mechanism. of the polyether macromonomer
industry.
August 26, 2022
A work conference on the C6
Our 2022 macromonomer standards and
the second plenary session of the
Milestones in 2022 working group on the preparation of
the VPEG and VBPEG organization
standards were hosted at STL
headquarters. The Company led the
setting of the organization standards
for C6 macromonomer, adding new
momentum to industry development.
December 29, 2022 December 29, 2022 December 8, 2022 November 10, 2022 November 9, 2022 August 27, 2022
STL proposed to establish a Lianyungang Petrochemical’s STL continued to advance The Company invited experts S T L U S A w a s e l e c t e d Vi c e STL’s Lianyungang Petrochemical
Common Prosperity Public styrene plant was put into operation. its growing together program and partners in the acrylic acid President of the China General Olefin Comprehensive Utilization
Welfare Fund to promote the It strengthened the industrial chain by granting virtual equity and ester industries to gather on Chamber of Commerce (CGCC) Project was fully operational,
deep integration of the real and made up for its shortcomings, to Satellite Science & the shores the South Lake. The Houston at its General Membership injecting surging power into
economy and public welfare. extending to the high value-added Technology’s employees. event aimed to promote industry Meeting and Board Meeting 2022. higher-quality development of the
industry with huge potential and interaction and exchanges and to regional economy and China’s
broad development prospects in better provide quality solutions for goals of carbon peaking and
the downstream market. industry chain customers. carbon neutrality.
SATELLITE CHEMICAL CO., LTD.
Highlights in Performance in 2022
General Social Responsibility
National Manufacturing Individual 201st among China Top 500 Manufacturers Green Factory of the Petroleum Green Supply Chain of the Petroleum
Champion Demonstration Enterprise and Chemical Industry for 2022 and Chemical Industry for 2022
China Enterprise Confederation and
Ministry of Industry and Information China Enterprise Directors Association China Petroleum and Chemical Industry China Petroleum and Chemical Industry
Technology of the People’s Republic of Federation Federation
China and China Federation of Industrial
Recruitment Operations Benchmark Zhejiang Province’s List of Leading Enterprises
Economics
for a Community of Happiness 2022
China Digital Human Resources
Hurun China 500 Most Valuable 2022 Fortune China 500 Association Zhejiang Federation of Trade Unions, Publicity
Private Companies 2022
Fortune and CICC Fortune Department of the CPC Zhejiang Provincial
Hurun China Committee and other five ministries and commissions
Zhejiang Top 100 Enterprises Zhejiang Province’s List of "Forerunner" Enterprise Cultural Center of Zhejiang National-Level Green Supply Chain Management
Enterprises in the Integration of Domestic Province Enterprise
Zhejiang Enterprise Confederation, and Foreign Trade
Zhejiang Enterprise Directors Publicity Department, Organization Ministry of Industry and Information Technology of
Department of Commerce of Zhejiang
Association, and Zhejiang Federation of Department and other Departments of the People’s Republic of China
Province
Industrial Economics the CPC Zhejiang Provincial Committee
Export Brands of Zhejiang 2022-2024 Yangtze River Delta 100 Enterprises Top 50 Sustainable Development Industrial
Department of Commerce of Zhejiang Yangtze River Delta Enterprise Federation and Enterprises
Province Yangtze River Delta Entrepreneur Federation Forbes China
Human Resources
Outstanding Collective in the Reform of Zhejiang’s Industrial Workforce
Construction in the New Era
CPC Zhejiang Provincial Committee and the People’s Government of Zhejiang Province
China Top 10 Employers in the Petroleum and Chemical Industry
Chenhr.com and Yingcai Wanglian (Beijing) Technology Co., Ltd.
Quality to Foster an
Excellent Brand
STL has always been dedicated to the social
responsibility and mission that "chemicals make a
better life" and rewards investors' trust with business
stability. We insist on product quality control from
the source and leverage our technical advantages to
expand and innovate to provide customers with high-
quality and satisfactory products and services and
work with suppliers for win-win results.
Creating Premium Products
Improving Customer Service
Practicing Responsible Procurement
Boosting Industry Development
SATELLITE CHEMICAL CO., LTD.
Creating Premium Products
STL regards product quality as the Company's foundation. To ensure product quality, we always
prioritize our internal quality management system. We also invest in innovation and R&D to accelerate
the digital transition. We promote the qualitative change of the Company to a low-carbon chemical sci-
tech company of new materials based on light hydrocarbon integration and continuously contribute to
the transition and upgrading of China's chemical industry by increasing our intrinsic safety and clean
production capacity and accelerating the quality, efficiency, and power changes in the chemical industry.
STL practices "technology leading" to drive the Company's high-
Furthermore, we are stepping up our efforts to protect intellectual property rights and promote the
quality development in order to improve its presence in the
growth of the digital economy.
industry chain. We take the initiative to establish organizational
standards, demonstrating our commitment and responsibility
to the orderly development of the C6 macromonomer industry
and extending and intensifying industrial exchanges and
collaboration. More importantly, it allows for resource sharing,
complementing each other's advantages, a win-win ecosystem,
Quality Management System and synergistic development in the industry, as well as bringing
new energy to industry development.
STL is constantly working to improve its quality management system. We strictly adhere to the Product Quality
Law of the People's Republic of China and the Standardization Law of the People's Republic of China. STL’s quality management system certificate
We have formulated Quality Management System, an Incident Management System , Quality Management
Regulations, and Critical Activities and Key Quality Control Points in place. These internal management
Engaged in setting of the organization Conducting unscheduled Advancing the work of the joint
documents establish criteria for product quality, critical activity acceptance, and other processes. STL has also
standards for C6 macromonomer application performance tests laboratory
established a quality management system with "centralized leadership, hierarchical management, and division of
responsibilities". The Company is assigns the responsibility of quality management to the general project manager, STL has worked with China STL conducts irregular The Company’s joint
and the responsibilities of quality management and customer quality to the deputy manager of production and National Chemical Information application performance laboratory continuously
related personnel. The roles and responsibilities of quality personnel at all levels are clearly defined. Center to progress the setting tests on products and has conducts tests to expand
of the organization standards developed a database the application of C6
STL accelerates the transition and upgrading of traditional industries, vigorously develops new chemical materials for C6 macromonomer. With of product indicators and macromonomer and has
and fine chemicals, and catalyzes the industry's digital transition to promote high-quality development. We adhere the support of Tongji University, application performance developed a polycarboxylate
to the basic principles of market-oriented, innovation-driven, green and safe, open and collaborative, and draw Beijing University of Technology, correlation indices. Moreover, water-reducing agent for
fundamental impetus from reform and innovation in this course, which follows the Guiding Opinions on Boosting and Shanxi University, the the customer-centric gypsum-based self-leveling
the High-Quality Development of the Petroleum and Chemical Industries During the 14th Five-Year Plan Company has developed a test Company coordinates mortar. It features a fast flow
Period. method for the double bond production plants to rate and good flow retention,
retention of C6 macromonomer, continuously optimize which can effectively improve
We carry out quality management in accordance with the ISO 9001 quality management system, which
filling a quality gap in the industry, process parameters and the construction efficiency
includes annual internal and external reviews as well as monthly special inspections of the quality system. We
and completed the standard test improve product quality. and ensure the construction
supervise the rectification of existing problems to ensure closed-loop management. Furthermore, we assess the
and preparation. The standards quality. The laboratory has
Company's identification and compliance with laws and regulations, with a focus on key product quality control
are expected to be released in filed a patent application and
points. We conduct process inspections and have several quality-related systems in place to ensure quality and
May 2023. has been granted.
continuously improve quality issues.
SATELLITE CHEMICAL CO., LTD.
Improving product quality control in collaboration with Boosting the Company’s technological innovation in collaboration
Case
案例 Case
案例
universities and research institutes among enterprises, universities, and research institutes
To promote product performance improvement and sustainable development, the Company has To facilitate the effective combination of necessary production factors for technological innovation,
established a joint laboratory with Tongji University. The partnership aimed to develop application STL collaborates with higher education institutions. In 2022, the Company established a postdoctoral
processes dedicated for polyether macromonomer customers, such as the synthesis process of viscosity- workstation with Zhejiang University to gain a forward-looking scientific perspective with the strength of
reducing polycarboxylate water-reducing agents. This move has not only solved the pumping problem of the university’s supervisory team. Moreover, STL collaborates with Dalian University of Technology on a
high-grade concrete but also broadened the application of vinyl polyethylene glycol ether. Moreover, the project to recover hydrocarbon-containing carbon dioxide tail gas from the production process of the EO/
Company has developed an iodine value test method for vinyl polyethylene glycol ether and ethylene oxy- EG plant, which is now under construction. The project captures and utilizes the carbon dioxide tail gas
butyl polyethylene glycol ether, which provides effective support for product quality control. from the production process which has been directly emitted into the air. The successful implementation
of such projects mark Lianyungang Petrochemical’s contribution to China’s strategy of carbon peaking
and carbon neutrality.
R&D and Innovation Capabilities
案例
Setting footprints in the high-end polyolefin industry chain with
Case
breakthroughs in the supply of key and core new materials
Innovation System Construction
To build a product R&D system based on industrial chain integration, STL has set footprints in the R&D ofα-olefin
STL is constantly improving its science, technology, and innovation (STI) system. We developed and implemented and POE in the downstream ethylene industry chain. At the beginning of 2023, the Company’s α-olefin industrial
management systems for R&D, knowledge, and the security of human resources, funds, and supplies to support pilot plant achieved stable operation, reaching the intended target of the industrial pilot plant. Specifically, the quality
product and technology innovation, using the Management Measures of the Research Institute for Polymer New of 1-hexene products has reached China’s industry standards. For 1-octene, there has been no production plants
Materials as the overarching management rules. in China and all products had to be imported. The new plant’s 1-octene products have met the standards against
imported samples, marking the successful start-up of the Company’s independently developed α-olefin industrial
We are committed to the development philosophy of "prioritizing innovation and focusing on three qualities". Under pilot plant. In the future, STL will continue to strive for the mission that "chemicals make a better life" and leverage
our talent philosophy to "assess the talents based on their abilities and contributions in addition to educational the advantages in the industrial chain to accelerate the advancement in new energy. We will make solid progress
background and work experience", we have a set of talent management policies and measures tailored to the in our basic business, low carbon products, and set footprints in the high-end polyolefin industry chain. Seizing the
industry and our workforce. Furthermore, we have a dual-channel development model of "technology" and market space brought by the new development pattern whereby domestic and foreign markets boost each other,
"management" to provide more opportunities for employees at all levels to advance their careers. We create a we will meet people’s pursuit of a better life.
"specialized, professional, and international" workforce while also expanding and improving R&D personnel's ability
to innovate. In this manner, we created a permanent mechanism for attracting, training, and incentivizing scientific
and technological personnel, as well as a graded personnel training mechanism and a career planning system.
Protection of Intellectual Property Rights
Innovation Management Measures STL places a premium on the management of scientific and technological outcomes. To strengthen STI
STL is dedicated to product innovation and the digital empowerment of production management. With the use management and catalyze STI progress, we have established the Corporate Patent Management System ,
of intelligent digital technologies such as DCS, SAP, and MES, we have optimized and promoted the "five-in- the Information Confidentiality Management System , and other internal system documents. In the process of
one" safety management platform, as well as improved production efficiency and management capabilities. patent filing, we make explicit requirements in internal process codes and at meetings for all production bases,
Simultaneously, we advance the development of digital factories and improve the application scenarios of business units, research institutes, and other relevant units to conduct necessary surveys before filing a patent.
"Intelligence+, Robot+", and the industrial internet.
STL has created a three-tiered digital intelligence system comprised of an intelligent operation platform, The year-on-year increase of
intelligent factories, and intelligent equipment, with the SAP+ industrial Internet platform serving as the In 2022, patents filed: Patents granted:
the number of patents filed:
including invention patents: 39 27
foundation. We advance the subsystems of digital and intelligent R&D, marketing, supply chain, manufacturing,
finance, human resources management, HSE management, and process, with which we construct a "digital
and intelligence-driven enterprise" and develop the Company's new competitiveness.
including invention patents:
SATELLITE CHEMICAL CO., LTD.
We offer instruction in intellectual property rights (IPRs) laws and regulations and the compliance with them.
案例
Promoting green and low-carbon processes and technologies to
The Legal Affairs Department of the Company invites law firms to interpret IPRs laws and regulations and Case
boost high-quality development of the manufacturing industry
analyze relevant cases. The IPRs management commissioner trains departmental IPRs managers and
answers their questions about the Management Code of Corporate Intellectual Property Rights, handbooks,
To further enhance enterprises’ scale advantage and
and procedure documents. Following that, the departmental IPRs managers provide training for their
market competitiveness, a centralized signing ceremony
departments, with approximately 70% of the training focusing on IPRs compliance.
for high-quality manufacturing projects in Pinghu was held
in May 2022, which was themed by "Gathering Intelligence
Power for Manufacturing in Pinghu for a New Future". The
Commercialization of Innovation Results event was attended by Zhong Xudong, Secretary of the
CPC Pinghu Municipal Committee, Zhou Junbo, Deputy
STL invests continuously in R&D and innovation, commercializing innovation results and improving its Secretary of the CPC Pinghu Municipal Committee and
research capability for key general technologies for enterprises. Under the concept of "technology leading", Mayor of Pinghu, and other leading officials, as well as Gao
we continuously optimize our processes and seek cost-effective innovations. We are also expanding our Jun, Vice President of STL and General Manager of Pinghu
high-value industry chain in order to bring differentiated products to market. Base, and other enterprise representatives. The Company’s
project in the event applied the green low-carbon process
and technology developed by the Company independently.
It enriched the Company’s acrylic acid and ester products
案例
Case Launching leading projects to ensure energy security and will contribute to the higher-quality development of the
regional economy and the national goals of carbon peaking
and carbon neutrality.
STL provided additional impetus for Lianyungang to accelerate its "late-mover's catch-up" by launching
the Lianyungang Petrochemical olefin comprehensive utilization project. It is a key project of Jiangsu
Province as well as the base, leading, and flagship project of the Lianyungang national petrochemical
base. It is critical in promoting Lianyungang's development of a world-class petrochemical industrial
base and in boosting China's chemical industry's high-quality development. As the project is
implemented, STL will focus on creating a benchmark and model for safe, environmentally friendly, and Work Safety Management
low-carbon development in the chemical industry, as well as making greater contributions to ensuring
China's energy security. STL believes that work safety is the lifeblood of an enterprise's steady development, a guiding principle
for an enterprise's survival, and the foundation for an enterprise's long-term growth. We insist on the work
safety principles of "safety first, focusing on prevention, integrated control, and all engaged", and we put the
safety concept "safety is more important than profit" into practice. Furthermore, we are constantly evolving
and improving our HSE management system. We focus on work safety management under the HSE
案例
Progressing innovation based on research projects to boost management system framework, move faster to address hidden dangers, improve our risk control ability, and
Case
industry development strengthen our contractors' safety qualification management.
STL is involved in scientific research and innovation to help drive industry development. We
conducted preliminary research on the dechlorination of raw material water in the production base
and obtained some results. We developed an innovative separation process to minimize the chloride Safety Security Management System
ion content through a series of operations and analyses. The success of this experiment implies that
STL implements the Work Safety Law of the People's Republic of China and the Interim Measures for
the recycling efficiency of raw material water will be greatly improved, empowering the industry in
the Screening, Identification, and Control of Work Safety Accident Hazards. We adhere to the safety and
recycling and reusing.
environmental protection concept that "safety is more important than profit" and assume responsibility for
the ecological environment, as well as the work safety principles of "safety first, focusing on prevention,
integrated control, and all engaged". We have developed a Work Safety Accountability System for all
employees and established reputable organizations and institutions for safety management. We have
enhanced our systems for ensuring work safety and advanced the standardization of work safety. At the end
of the reporting period, all of our production bases and business units held the Level 2 Certificate of Work
Safety Standardization for Enterprises.
SATELLITE CHEMICAL CO., LTD.
STL pursues HSE management objectives and controls exhaustively all facets of production and operations Work Safety Risk Identification
using organizational, systematic, and funding assurance measures. We have created a comprehensive
responsibility chain with no loopholes and assigned each level the primary responsibility for ensuring STL focuses on regulating safety risk management and hazard identification, screening, and control. In
workplace safety. We evaluate and monitor the performance of the work safety accountability system using accordance with the Guiding Rules for the Screening and Management of Potential Risks in Enterprises
an evaluation mechanism. In addition, we conduct routine safety management evaluations and reviews Engaging in Hazardous Chemicals , we develop annual safety inspection plans that outline the frequency
of the safety standardization system's operation. We analyze the process based on the audit's findings to and scope of potential risk inspections for each department. We have initiated professional inspections of
identify and eliminate safety and environmental risks. We use the PDCA method to enhance the operational processes and equipment in an effort to prevent and reduce workplace accidents.
efficiency of safety standardization in a scientific, regulated, and efficient manner.
We have implemented rigorous risk screening for all aspects of production, identified a number of safety
risks, and taken targeted steps to bolster our response, ensuring regular screening and strict control of
safety risks. In addition, we have developed a safety risk screening APP and entered the Guiding Rules for
the Screening and Management of Potential Risks in Enterprises Engaging in Hazardous Chemicals and
the Guiding Rules for Standardization Reviews into the system's backend. We push the inspection items
STL had 51 registered to designated inspectors via the WeCom to increase the effectiveness and quality of risk screening and to
advance the development of risk identification systems and standards.
safety engineers
Unfavorable factors of
the environment
firefighters firefighters by 2022
Related to the work Lack of or defects in Poor environment of the
experience, technical capacity, protection and signal devices production (construction) site
safety awareness, and
physical condition of the actor Defects in equipment,
facilities, tools, accessories
Organizational Assurance Systematic Assurance
And sub-standard personal
A work safety management structure with the Work safety management systems have
protective equipment
general manager of the base as the principal been developed, including the Work Safety
person in charge, which extends to primary- Accountability System for All, the Hazard
level teams, has been established. Safety Screening and Investigation System, the
management institutions have been set up. Full- Risk Management System, and the Major STL’s safety risk identification
time safety management positions have been Hazard Management System. They define
set up. Every workshop has safety managers to the responsibilities and work requirements of
ensure the implementation of safety measures. departments and promote their compliance
with safety management requirements.
Work Safety Assurance
We place a high value on work safety management and control, and we take steps to ensure it based on the results
Funding Assurance of our safety risk assessments. To ensure the Company's long-term development, we perform safety management
The Company has established a sound internal management system for corporate work safety expenses in throughout production and operations. To prevent and reduce work safety accidents, we have implemented a
strict accordance with the Management Measures for the Drawing and Use of Corporate Work Safety top-down safety assurance system, as well as measures such as increased supervision and management, an
Expenses . It defines the procedures, responsibilities, and authority for the drawing and use of corporate work emergency response mechanism, and hazard screening and identification.
safety expenses, assigns responsibilities, and ensures that corporate work safety expenses are drawn and
used according to regulations.
STL’s safety assurance management system
SATELLITE CHEMICAL CO., LTD.
Safety Supervision
案例
Building a dedicated information platform to facilitate safety
and Inspection Case
management
A top-down safety supervision system is established. The safety management department and
professional departments observe the principle that "industry overseers, business overseers, and To facilitate the IT-enabled management of work safety, we have improved the functions of the IT-enabled
production and operation overseers must oversee safety". They supervise and assess safety issues from platform for work safety and achieved process-based and systematic regulation and constraints, focusing
the safety management and professional management perspectives, respectively, to ensure that the on solving the problems that have been unclear, unexpected, or under poor management. Lianyungang
issues are addressed and a closed loop is formed. Petrochemical has established systems for safety hazard screening and identification, safety training,
field inspection, GDS classified warning, electronic operation permits, and change management, which
significantly facilitate work safety management.
Improvement to
Emergency Management
Precise Guidance for Field Operation
Paperless Management
An emergency management system under unified command and with intra-level coordination: The Management
work safety emergency rescue command center leads and commands process handling, emergency
rescue, alert and evacuation, emergency repair, environmental monitoring, and logistical support. Each
Since the IT-enabled management platform Each business module is capable of
department establishes its own emergency response organization to deal with work safety accidents
for work safety was put into operation, all automatic data collection and displaying the
within the department.
work safety activities have been put online, results in bar charts or pie charts according
A sound emergency organization system: The responsibilities of emergency teams are well defined. A 24- which has improved the safety management to specific business or attributes, thus
hour emergency contact line is available and managers and HSE personnel are arranged for night duty system with data flow. providing intuitive and accurate guidance for
for emergency response and external contact in case of emergency. safety management for field operations.
Revision of accident emergency plans: Emergency plan training and emergency drills are held regularly
to test employees’ emergency handling ability. Based on the results of the drills, emergency plans are
revised and improved from time to time to develop an emergency handling operation procedure that is Digital Construction of Dual
One-Click Information Push
more practical and feasible. Prevention Mechanism
In the warning system of major hazards, a Improvements are made to the functions of
Work Safety Performance
Management corresponding responsible person can be set dynamic monitoring of the implementation of
for each warning level, and the abnormality risk control measures, tracking and supervision
Production bases and business units develop environmental protection and safety assessment indicators. warning information will be pushed to the of hazard screening and control, assessments
These indicators are broken down and assigned to relevant divisions of each department and production person at the first time to guide them to take of the effectiveness of the mechanism,
plants, and included in the monthly and annual assessments of all relevant managers. That way, graded countermeasures. automatic warning of abnormal conditions, and
systematic management is performed, which enables tracking, implementation, and closed-loop management. assessments, rewards, and punishments.
Lianyungang Petrochemical’s IT-enabled platform for work safety
IT-Enabled Platform
Information technology is applied to build a five-in-one platform for the Company, which integrates the
information about major hazard monitoring, flammable and toxic gas detection and alarm, corporate safety
risk zoning, production personnel attendance, and corporate production process management. Advanced
technology is applied for closed-loop hazard management and IT-enabled risk control, to practice the
Company’s safety management concepts of "technology leading" and "management leading" in all aspects.
STL’s safety assurance initiatives
SATELLITE CHEMICAL CO., LTD.
案例
Holding emergency drills to enhance work safety emergency
Case We regularly register hazardous chemical We conduct regular chemical risk identification
response capacity
information on the Registration Information and evaluation, and risk and hazard screening
In the national Work Safety Month, Jiaxing Base hosted the 2022 Integrated Emergency Drill of Nanhu District
Management System for Hazardous Chemicals for key chemicals under regulation. For chemical
and Chemical Clustering Areas for Hazardous Chemical Accidents, which was attended by heads of regulatory
and the Work Safety Risk Monitoring and Early safety risk issues, we develop countermeasures
departments and enterprises. Jiaxing Base demonstrated emergency response in coordination with surrounding
Warning System for Hazardous Chemicals and emergency plans
areas in a Class-1 major hazard accident to enhance the ability to respond to safety emergency and display STL’s
of the Ministry of Emergency Management.
We register hazardous chemicals in strict
social responsibility.
accordance with applicable national regulations
Lianyungang Petrochemical develops annual work safety accident emergency drill plans and carries out and established procedures, and apply for
emergency drills for EO/EG spherical tank fire and explosion accidents and ethylene spherical tank fire accidents administrative permits such as the work safety
accordingly. In addition, it carries out emergency drills from time to time and organizes professionals to carry out production license for hazardous chemical
evaluation, forming a pattern of regular and extraordinary emergency drills. manufacturers
Chemical Chemical Risk
Registration Assessments
Chemical Chemical
Supervision Phase-Out
案例
Constructing a risk grading and control system to strengthen safety
Case
risk control
We register the chemicals used in the We strictly comply with the Catalog of
production process and mark the corresponding Backward Work Safety Production Processes,
To improve its safety management, Pinghu Base has conducted comprehensive risk identification
safety information on the products and update Technologies, and Equipment of Hazardous
and completed a risk grading and control system according to the Implementation Guidelines of the
them dynamically in compliance with national Chemicals to Be Phased Out (First Batch)
Emergency Management Department of Zhejiang Province for Enterprises in Zhejiang Province to
standards such as the Classification and Code and the Catalog of Toxic Chemicals Prohibited
Construct Safety Risk Control Systems.
of Dangerous Goods, the List of Dangerous or Strictly Restricted in China. We conduct
During the reporting period, Pinghu Base established a change review team. The team used hazard and Goods, and the Classification and Labels of regular chemical screening to ensure that
operability (HAZOP) analysis, failure mode and effects analysis (FMEA), and other analysis methods Dangerous Chemical Substances Commonly our production and operation activities never
to conduct risk assessments, develop control measures, and strengthen risk control according to the Used involve chemicals that are explicitly prohibited,
content and scope of changes. mandated to be phased out, or mandated to be
replaced by the state
Chemical Safety
We rigorously manage the transfer and storage of chemicals, as well as the risks associated with the transportation of
STL places a high priority on chemical safety. We strictly adhere to all applicable national regulations, such as the chemicals in various forms. According to national standards, we have technical safety instructions and safety labels for
Regulations on the Safety Management of Hazardous Chemicals and the Regulation on the Administration hazardous chemicals for transporters, warehouses, and end users. The IGC code must be adhered to when transporting
of Precursor Chemicals. We manage the entire chemical process, including registration, supervision, storage and chemicals via ship. The design, construction, and equipment of transport vessels are governed. In addition, we use ethane
transportation, use, and disposal, considering all potential health and environmental risks associated with chemical use. as the primary energy source for ship operations, thereby establishing a sustainable and environmentally friendly maritime
supply chain.
SATELLITE CHEMICAL CO., LTD.
Contractor Safety Management
案例
Special inspections of work equipment to improve contractors’
Case
safety management
We attach importance to contractor safety management. We put all aspects concerning contractors, including
qualification review, assessments and inspections, and daily supervision, under a people-centric supervision and To standardize the management of tools and apparatus in special operations, the HSE Management
management model. We have strengthened communication with contractors, focusing on enhancing their safety Department, together with the Equipment Maintenance Department and contractors’ persons in charge (PIC),
skills and awareness, and built a strategic contractor team. In 2022, no contractor safety accidents occurred in our inspected tools and apparatus on construction sites. They verified item by item against the standards. Once
production bases and business units. a problem was identified, they communicated promptly on the site and obtain the contractor PIC’s warrant
to rectify, with clear rectification standards and timetable. That way, continuous improvements were made to
contractors’ safety management.
Review of Contractors’
Safety Qualifications
Contractors must have their safety qualifications and personnel qualifications reviewed before working at
plant and sign the Agreement on Safe and Environmentally-Friendly Engineering Construction.
Contractors must have their safety performance and reputation evaluated every year, which includes
the fulfillment of contractor’s responsibilities and obligations, organized construction, and safety
management. The results will be used as the basis for contract renewal.
HSE Management Department’s special inspection on tools and apparatus
Safety Supervision
for Contractors
Monthly safety meetings are held for contractors to summarize and evaluate their on-site safety Creating a Safety Culture
management. Contractors’ safety managers must develop preventive measures for continuous
improvement and upgrading. In the belief that "rigor is care, self-discipline is protection", we employ objective and scientific investigation
techniques to determine the underlying causes of past accidents in order to draw lessons from them. We
Contractor sites undergo monthly comprehensive safety inspections. Hazards in electrical wiring, have established an HSE training system to increase employee safety consciousness. Based on the strict
environmental protection, and fire management must be rectified in a timely manner. implementation of the safety management system and safe operation procedures, we have improved the
HSE training matrix for all employees and enhanced the progress toward safety KPI targets.
Responsibilities are broken down, including putting contractors under departmental management and
implementing a three-tier contractor blacklist. Throughout the reporting period, we conducted numerous safety training sessions and safety knowledge
competitions to promote the safety culture, increase all employees' safety awareness, establish a corporate
Contractors’ health and safety systems and their certifications are included in contractor audits. safety environment, and contribute to sustainable development.
Contractors will be recognized for their initiatives to improve operational facility safety and good safety
practices.
In 2022,
Safety Training Number of hours on safety training conducted Participants in safety training
for Contractors
Contractors’ managers are organized to study laws and regulations and cases of work safety accidents
in the industry to avoid similar accidents. They are also advised to conduct daily pre-shift safety meetings
and check the implementation of training.
SATELLITE CHEMICAL CO., LTD.
案例
Emergency Drills and Training Work Safety Open Day to promote the safety culture of chemical
Study of Work Safety Regulations Safety Culture Competitions Case
for Safety Accidents enterprises
External experts are invited Safety culture and knowledge Training is provided on
To promote the corporate safety culture and deepen the public’s understanding of the chemical industry,
to train managers above the competitions are held. The the physical and chemical
Pinghu Base held a Work Safety Open Day in June 2022, on which employees from member enterprises
middle level of production online exercises and exams properties of hazardous
of the Pinghu Association of Work Safety Technology visited Pinghu Base’s HSE Culture Experience Hall
bases and business units stimulate employees’ learning chemicals and emergency
and Central Control Room. The Open Day brought the public up close to chemical plants. It also served
on the Work safety law enthusiasm. The winners will first aid in daily contact
as a window for Pinghu Base to the public, which was helpful for deepening the public’s understanding of
of the people's republic be awarded. and sessions are held for
the chemical industry and changing their traditional perception of chemical enterprises.
of China and the Fifteen accident case and safety
hard measures for work Firefighting competitions experience sharing to
s a f e t y. T h e m a n a g e r s for emergency ability are improve employees’ safety
are promoted to prioritize held to enhance employees’ awareness.
work safety and act as the emergency response ability,
primary responsible person strengthen their awareness
for work safety within their of fire safety, and test the
management. emergency response ability
through practical exercises.
STL’s work safety training
Pinghu Base’s Work Safety Open Day
案例
Safety management training to increase the awareness of
Case
safety responsibilities
During the reporting period, we hosted the second guardian training session to regulate the safety 案例
Case HEC’s visit for exchanges in work safety
management in the operation process, improve the operation skills, and control operational risks for
all employees. In that session, we improved employees’ awareness of safety responsibilities and on-
For better exchanges in work safety, Pinghu Base’s HSE Director led a delegation from Hangzhou
site guardianship skills, standardized safety management in the operation process, and identified and
Electrochemical Group (HEC) to visit the Central Control Room and the HSE Culture Experience Hall
controlled operational risks.
of the base in December 2022.The director made a brief introduction to STL’s history, production scale,
and other general information to the guests, focusing on the base’s safety management experience in
production management, safety operation procedures, and hardware facility configuration. In this visit,
the two sides shared their experience in work safety and laid a solid foundation for better work safety
exchange activities in the future.
STL’s second guardian training session
We are committed to fostering the expansion of a culture of safety and assuming corporate responsibility. HEC’s visits and exchanges
In addition to fulfilling our safety commitment, we contribute to bringing the public closer to the chemical
industry, sharing our experience in safety management with our peers and fostering a culture of work safety.
SATELLITE CHEMICAL CO., LTD.
Safety Recognitions and Awards We provide our service personnel with training to improve their management, leadership, and decision-making
skills, thereby ensuring that our products will receive superior after-sales service. In 2022, STL conducted
During the reporting period, we took part in many competitions on work safety and strengthened our safety 31 internal service training sessions for a total audience of 1,578. They included training on integrity, special
management, which was recognized and well-received by all sectors. onboarding training, and sales and customer service skills.
Award Winner Award Customer Satisfaction Management
Lianyungang Petrochemical Co.,
First prize in the "Blue Flame" Firefighting Skill Competition 2022 In an effort to provide customers with high-quality, efficient, and professional
Ltd.
services, STL has established a complaint feedback processing system. We
In 2022, Complaint
Top 10 Model Entities in Basic Work Safety Management in Jiaxing are committed to addressing customers' concerns, resolving their complaints
resolution rate
on the first attempt, and providing timely feedback on the outcomes to
Zhejiang Satellite Energy Co., Ltd.
Emergency (Safety) Publicity and Education Experience Hall of Zhejiang
Province
improve the customer experience. In addition, we place a premium on our 100%
customers' requirements and engage them in yearly, in-depth dialogues. A
customer satisfaction survey was conducted by STL in 2022. We modified the Customer
Model for Operations in Limited Space of Pinghu
questionnaires based on each business unit's characteristics, including STL's Satisfaction
brand, sales service, ethical integrity, technical support, after-sales service,
logistics service, and future collaboration expectations. Following this, we
sent them to our customers as URLs or QR codes. Customers filled out the
questionnaires and returned them to the Company for processing.
Practicing Responsible
Procurement
Improving Customer Service STL strives for whole-chain quality management by
continually shifting the focus of quality management to the
SLT is dedicated to providing friendly, professional, and efficient services to customers while also
early stages. We collaborate with our partners to ensure
developing a high-quality and dependable service system. We listen to our customers' needs and
quality through quality management and technology
respond quickly, optimize the customer experience, and improve customer satisfaction in all areas,
development for mutual benefit. To continuously optimize
resulting in a stable and long-lasting relationship of trust with our customers.
the supply chain, we admit new suppliers based on the
Company's operations and procurement needs, and we
provide suppliers with production and operations training
throughout the year.
Customer Service Management
STL strictly adheres to the Civil code of the people's republic of China, the law of the people's republic of China
on the protection of consumer rights and Interests, and the Advertising Law of the People's Republic of China.
Green Procurement
We have developed and revised the Management Regulations on the Applied Technology Service of the
Marketing Center and enhanced the quality of our services and internal structure. In addition, in accordance STL has created the Management system for supplier performance assessments, the management system
with the principle of "making decisions and preventing risks based on the trend", we are constantly enhancing for supplier acquirement and the verification, management measures for supplier field Inspections, and the
our market analysis and research and developing differentiated marketing strategies. Focusing on customers, management measures for green supplier assessments. These internal systems factor ESG performance
we enhance the added value of our products, expand our stable and loyal key account base, and increase our of suppliers into supplier admission, evaluation, and other aspects, promoting sustainable supply chain
industry influence, thereby enhancing our market standing. management.
SATELLITE CHEMICAL CO., LTD.
Smart Procurement
STL has revised the Management measures for green supplier assessments for supplier admissi on, giving
priority to suppliers on the Green Manufacturing List issued by the Ministry of industry and Information
Technology or those who have passed the environmental management system certification and the energy
management system certification. We assess green suppliers on a regular basis, sign the Agreement on STL works hard to create a smart procurement platform as well as an ecological supply chain platform that
green development and ecological civilization with key suppliers, and recognize and reward outstanding green covers all scenarios. STL established an SRM procurement system in 2022 in order to achieve all-around
suppliers. We are also involved in the application process for green parks, green supply chains, and green collaboration and interaction with suppliers, improve procurement management, increase procurement
products. In 2022, Lianyungang Petrochemical was put on the List of Green Factories in Jiangsu Province (Third efficiency, and shorten the procurement cycle. The system disseminates bidding information, broadens
Batch) 2022 and ranked among the Leading Enterprises in Green Development for 2022; STL was recognized the scope of sourcing, and assists management throughout the lifecycle of suppliers, from admission to
as a national-level Green Factory and Green Supply Chain Management Enterprise; Satellite Energy was put performance management. As a result, it is constantly improving its internal pool of qualified suppliers and
on the List of Green Factories in Jiaxing (First Batch) 2022, and Pinghu Petro Chemical was put on the List of acquiring high-quality suppliers from the industry. STL also offers online quotation, bidding, and tendering
Green Factories in Jiaxing (Second Batch) 2022. tools to maintain reasonable control in an open, fair, impartial, and legally competitive environment.
STL always maintains a positive relationship with its suppliers in order to develop the supply chain. We
communicate with our suppliers through environmental protection, integrity and anti-corruption training, and
warehouse and delivery management to help them improve the quality of their products and grow alongside the Business Process Enabling Process
value chain. Procurement Procurement Procurement
intervention in the early requirements Seeking potential suppliers
strategy
stage management
Sunshine Procurement Supplier verification
Document system verification
Signing a basic Procurement
agreement Site investigation internal
STL ensures that its procurement is fair and impartial and that its supply chain is open and transparent. We have control
a zero-tolerance policy for corruption and strictly prohibit commercial bribery. We expect our suppliers to strictly Sample and material verification
adhere to the Management system for supplier performance assessments, the Notice on integrity responsibility,
and the Management measures for procurement risk prevention, as well as to strengthen supplier management.
Supplier selection Procurement Supplier performance
execution management
We prioritize suppliers who have passed applicable environmental system certifications when selecting them. We
Competition evaluation Procurement execution Establishing a
sign the Notice on Integrity Responsibility with suppliers in order to convey the concept of "sunshine procurement" supplier performance
to them. Furthermore, we distribute questionnaires on the implementation of sunshine procurement in order to gain Bidding Payment Settle
assessment system Procurement
a thorough understanding of the supply chain and establish a clean supplier management system. Contract/order changes document
Assessing supplier management
performance
Signing a procurement Supervising suppliers’
contract of business
案例
Integrity and anti-corruption training for suppliers to create a rectification
Case agreement
clean supply chain system
To further prevent corruption, STL hosted an Services and functions of the SRM system
online training session on the Code of Conduct
for Suppliers/Contractors in February 2023, which
was attended by over 200 key and core suppliers/
contractors. We require all STL suppliers/
contractors to fully comply with applicable laws, Boosting Industry Development
internationally recognized human rights standards,
and ESG standards as specified in international We are acutely aware that corporate development is inextricably linked to industry development, and we are
conventions, so that they can progress and grow active participants in industry exchange events and members of several associations. As a result, we improve
with STL and build a clean supply chain. STL’s online training session on integrity and our business capabilities, foster industry information exchanges, and continue to deepen our collaboration with
anti-corruption
universities and research institutes. More importantly, we are assisting ourselves and the industry in meeting
China's carbon peaking and carbon neutrality goals.
SATELLITE CHEMICAL CO., LTD.
Level of the
案例
Serial No. Name Title Hosting a work conference on the C6 macromonomer standards
Association Case
to boost industry development
Advisory Committee of Light Hydrocarbons and Aromatics, Deputy
China Petroleum and Chemical Industry Federation Director In August 2022, a work conference on the C6 macromonomer standards and the second plenary session
of the working group on the preparation of the VPEG and VBPEG organization standards were hosted at
Executive STL headquarters, which added new momentum to industry development. Bai Jie, General Manager of
Director STL’s Marketing Center and a professor at China Building Materials Academy, attended the conference.
At the meeting, STL organized discussions on the product indicators and testing methods used by the
Chemical Standardization Sub-Committee, China
Association for Standardization
STL fully demonstrated its determination and responsibility to maintain the orderly development of the
Executive C6 macromonomer industry, extend and intensify industry exchanges and collaboration, and achieve
Director
development in the industry.
Zhejiang Federation of Industrial Economics
Zhejiang China Enterprise Directors Association
Vice
President
案例
China’s first EAA project launched, driving high-quality industry
development
In August 2022, a ceremony was held in Lianyungang for the contract signing the 40,000-metric-ton/year
STL’s Association Membership in 2022 high-end packaging new material project (EAA) jointly launched by STL and SK Group from South Korea.
It marks the first EAA production base being launched in Asia, which will contribute to the high-quality
development of the industry. This project is of great significance. The two sides are highly compatible and
complementary in development strategy, business growth, and business philosophy. This collaboration
STL Cup Contest 2022 concludes, empowering technological
Case will further promote STL to optimize its industrial structure, strengthen and extend the industrial chain,
iteration in the industry
and fill the gaps in the chain, and enhance its scale advantage and market competitiveness.
In August 2022, the Admixture Industry Technology
Contest 2022, which aimed to accelerate the
technological iteration of macromonomer, was
concluded in the factory of Chaoli (Jiangsu)
Construction Materials Co., Ltd. More than 30
companies from all over China participated in the
competition, in which they competed fiercely for four
champions. STL, as a leading C2 light hydrocarbon
cracking enterprise, encouraged the participating
teams to use C6 macromonomer, thus boosting the
rapid development of the industry.
Governance to Seek
Long-Term Steady
Growth
A science-based and sound governance system is
the basis for a company's long-term, steady business
growth. STL adheres to compliance principles,
consolidates the corporate governance structure, and
upholds the political leadership of Party building in
addition to business integrity and self-discipline. In
addition, it optimizes the internal control management
system in great detail to reduce risks in all aspects.
By constructing an ESG governance structure and
advancing ESG work, STL addresses the concerns
of stakeholders and enhances the Company's
sustainability capacity and performance.
Insisting on Business Compliance
Intensive ESG Governance
SATELLITE CHEMICAL CO., LTD.
Meetings held in 2022:
Insisting on Business Unit: Time
Compliance General Meeting of
Shareholders 5 Nomination Committee 1
Business compliance is essential for a company's continued growth. Board of Directors 7 Strategy Committee 1
STL continually enhances its governance structure, maintains the
leadership of Party building, and intensifies its integrity education Remuneration and
Board of Supervisors 7 Appraisal Committee 4
and oversight. It optimizes its risk control management system
and takes every precaution to protect the Company's information Audit Committee 5
security in an effort to improve the Company's overall governance.
Corporate Governance Investor Relations Management
Governance Structure STL places a high value on investor communication and information disclosure. We avoid selective disclosure by
disclosing the Company's information faithfully, accurately, and completely in strict accordance with the Measures
STL adheres strictly to the Company Law of the People's Republic of China , the Code of Corporate Governance
for the Administration of Information Disclosure by Listed Companies . Every year, we train directors, supervisors,
of Listed Companies , and all other applicable statutes, rules, and regulations. We have drafted the Articles of
and senior management in this area in order to improve the quality and transparency of the Company's
Association of Satellite Chemical Co., Ltd. and constructed a governance structure that consists of the General
information disclosure and to fully protect minor shareholders' equal access to the Company's information.
Meeting of Shareholders, the Board of Directors and its special committees, the Board of Supervisors, and the
senior management. We continually improve our governance system and enhance our management, thereby We investigate novel approaches to investor relations management. Emails, phone calls, Shenzhen Stock
constructing an effective governance system in which authorities and responsibilities are clearly delegated. Exchange's IRM platform, the WeChat official account, annual performance roadshow and on-site surveys are all
ways we communicate with institutional and individual investors. On our official website, we also have an Investor
Under the Board of Directors, there are four special committees: Audit, Nomination, Strategy, and Remuneration
Relations section. We are constantly broadening the channels through which investors can obtain information,
and Appraisal. We fully consider the independence and diversity of the Board of Directors and consider the
deepening their understanding and recognition of the Company, and attempting to maximize shareholder interests.
directors' experience and professional level. Among the current directors, there are three professors, two with
a doctoral degree, and two with a master's degree. The directors are from different professional fields, such as
finance, law, and the chemical industry, providing a more comprehensive perspective to improve the Board's
decision-making and reduce the Company's risk exposure.
Composition of the Board of Directors and the Board of Supervisors:
In 2022
Unit: Person
Total number of directors 7
we answered over
Independent directors 3 1,000 calls from
investors STL's 2021 Online Annual Performance Roadshow
Female directors 3
Total number of supervisors 3
held 1 online annual answered 103 inquiries on the received 6 visits and
Employee supervisor 1
performance roadshow Shenzhen Stock Exchange's IRM platform surveys of investors
SATELLITE CHEMICAL CO., LTD.
Leadership of Party Building
STL always follows the leadership of Party building and integrates it into the corporate culture. Led by the
CPC Committee of the Company, we transform Party building into the driving force of corporate operations
and development, and internalize the advantages of Party building into the Company’s productivity,
competitiveness, and cohesion. The CPC STL Committee has two general branches and nine branches.
We provide regular and long-term Party history studies and education. We require all CPC members and
cadres at the Company to continue their efforts in ideological studies, live up to the Party’s standards, and
preserve Party membership’s advanced nature. In 2022, we held more than 100 theme Party Day events,
organized CPC members to watch the opening ceremony of the 20th CPC National Congress and attend
more than 50 sessions for studying and implementing the guiding principles from of the report to the 20th
CPC National Congress. Moreover, we supervised CPC members of primary-level branches to carry out
collective and individual self-study.
STL had 499 29 probationary In the year, 73 people
As of December 31, 2022 members of the CPC members of the CPC submitted applications
to join the CPC
We emphasize Party conduct and vigorously promote the Party building brand, STL Joining. We proceed with integrating
案例
Party members practicing their original aspirations by taking the the corporate culture and Party building. We strive to foster a highland of honesty and integrity and create a Party branch
Case
lead in public welfare initiatives for low carbon image that is ideologically advanced, ethnically progressive, and responsible, laying a solid foundation for the Company’s
high-quality development to a higher level.
To encourage CPC members to live up to the Party’s standards and play a pioneering role, STL’s production
bases and business units jointly organized a large-scale Party building volunteer campaign with the theme
of "Collecting Garbage to Promote Low Carbon" to progress regular and long-term Party building education. Joining Hearts:
The campaign was about clearing and collecting industrial and domestic wastes scattered in industrial parks In May 2022, the Working Committee for
creating cohesion for the
and the grain wharf in Dushangang Town, and sorting and transporting them. More than 200 employees Non-public Economic Organizations and
Company's development
participated in the campaign, in which they collected more than 20 bags of garbage for centralized delivery, Social Organizations of the CPC Municipal
restoring clean installation areas and coastlines. The campaign demonstrated that STL integrates Party Committee launched the first "One Brand for
education into daily life and maximizes the value of CPC members. Joining One Enterprise" selection for special Party
Joining
Forces:
Beauty: building brands of listed enterprises. STL’s
driving the STL Joining, Party building brand, STL Joining, became the
leading the
Company the Party Company's only selected enterprise in Nanhu District.
to grow Building Brand green
bigger and
development
stronger
On December 29, 2022, Satellite Group held
an inauguration ceremony for the Party Building
Culture Center to create a solid position for
Collecting garbage on the coastline Collecting garbage in an installation area the Party building to lead the high-quality
development of the enterprise.
SATELLITE CHEMICAL CO., LTD.
Integrity Supervision
System Construction Training and Education
STL values business integrity and has a zero-tolerance policy toward corruption. We created a Management We provide regular integrity education and publicity
System for Anti-Corruption and Anti-Commercial Bribery, as well as Management Measures for Reports and sessions for all members of the Company, including
Complaints, and optimized the Management Measures for Integrity, Self-Discipline, and Punishment and the Board of Directors, key departments, suppliers
Prevention of Corruption, Integrity Management Measures for Gifts of All Kinds, and Integrity and Self-Discipline and contractors, and part-time employees, to increase
Guidelines for Employees. These management systems require all employees to follow professional ethics all employees' integrity awareness. We have also
consciously and to practice in a fair and self-disciplined manner. launched online integrity courses on the STL Business
School platform. Every employee must attend at
To ensure integrity management and supervision, we established the Working Group of the Corruption Punishment least two integrity training sessions per year. We use
and Prevention System (hereinafter referred to as the "CPPS Group"), which is in charge of the Company's anti- positive and negative typical cases to educate and
corruption and integrity efforts. Yang Yuying, Vice Chairperson of the Company, leads the group, which is made guide middle and senior managers and directors to act
up of the heads of headquarters departments as well as key departments of subsidiaries, production bases, with integrity and self-discipline, to devote themselves
and business units. The group conducts integrity assessments of the management and conducts anti-corruption to their jobs, and to be impartial. They are required
publicity and education. to review their performance in the annual integrity
report. For employees at departments with a high risk
The Audit and Supervision Department of the Company conducts special anti-corruption audits for major business
of corruption, such as procurement, marketing, and An integrity conference of Lianyungang Base
segments such as procurement, sales, logistics, warehousing, quality inspection, and engineering construction
engineering project management, we hold integrity
every year. It performed 30 special audits in 2022. Furthermore, the department continuously monitors and The CPPS Group uses bulletin boards, seminars, and
conferences, morning meetings, practice exchanges,
advances the rectification of risk points to ensure integrity in all company operational aspects and improve integrity warning posters to raise employee integrity
seminars, anti-corruption and summary conferences,
operational efficiency and quality. The Audit and Supervision Department also holds integrity investigations and awareness and prevent corruption and other business
and provide integrity education videos and corruption
seminars. It thoroughly investigates and verifies complaints, reports, and suspected corrupt practices and strictly ethics violations.
cases from peer companies. As a result, we promote
handles confirmed cases. During the reporting period, we sent the Integrity Questionnaire to our suppliers
and enhance integrity awareness while also advocating
and customers, collected problems from supplier and customer feedback, and conducted investigations and All of our suppliers must sign the Notice on Integrity
honor for integrity and shame for corruption.
verifications. There were no major violation cases in the Company. Responsibility . We make clear to our suppliers the
principles of business conduct and the complaint
and reporting channels, and we conduct an annual
integrity questionnaire survey for all suppliers. During
the reporting period, we provided two integrity and anti-
corruption training sessions to all suppliers. The Audit
and Supervision Department provided contractors
with offline integrity training to help them communicate
STL's demands and attitudes toward integrity to
Integrity education of the marketing center upstream and downstream partners.
Integrity courses on the STL Business School platform
SATELLITE CHEMICAL CO., LTD.
Reporting Channels Protection of Whistleblowers
We have established a reporting telephone line, a reporting email, and a reporting mailbox as unblocked STL established the Management Measures for Reports and Complaints in place, which contains clear provisions
communication channels for employees, suppliers, customers, and other stakeholders. We encourage anyone in the on whistleblowers' confidentiality and privacy. To protect the whistleblower from retaliation, the whistleblower's
know to report all discipline and law violations, fraudulent, and improper conduct via these channels. We promote the personal information and the content of the report must be kept strictly confidential and not published without the
reporting channels internally and externally on promotional and communication occasions and posting posters. whistleblower's consent. We promote whistleblower rewards but will not disclose personal information about them
unless they consent. We will take firm action if retaliation against whistleblowers is discovered and confirmed. If
it is determined to be a crime, it will be forwarded to judicial authorities, who will hold the offender accountable in
Reporting Telephone
Number 0573-82058220 accordance with the law. The Company was not involved in any litigation or administrative punishment related to
corruption during the reporting period.
Reporting
Compliance@weixing.com.cn
E-mail
Supervision and Accountability
Reporting mails should be sent to the CPPS Group; the address is No. 196
Fuqiang Road, Nanhu District, Jiaxing, Zhejiang Province, China We have developed Management System for the Accountability of Work Errors to encourage all employees to
perform their duties and to increase their sense of responsibility. Employees who cause economic loss or other
Reporting In the headquarter building and the office buildings of subsidiaries, production
adverse effects to the Company by failing to perform their duties or performing their duties improperly will be
Mailbox bases, and business units, there are reporting mailboxes, which is managed by
punished once the case has been confirmed and the responsibility has been determined through investigations. We
the CPPS Group
determine and locate the responsible person based on the nature of the error, the level of discipline, the category
of discipline, and the definition of responsibility, and we hold accountability strictly in accordance with the incident
The Company’s internal network work platform has a Chairperson’s Mailbox and a
investigation process. As the permanent management body for accountability, the President's Office revises and
supervision and reporting mailbox
improves the system on a regular basis, as well as oversees, examines, and assesses its implementation. All
employees have the authority to supervise problems in the Company's operations and management and report
them to superiors, executives, the Disciplinary Commission, and the Audit and Supervision Department. We insist
The Company must reply to a report within 48 hours after receiving it.
on objective and impartial responsibility determination and hold accountability strictly by rank and level.
After receiving a report, the Audit and Inspection Department shall conduct an in-depth investigation of
the incident after a preliminary assessment.
External auditors or other institutions and functional departments may be engaged to assist in the
investigation as necessary.
A special The incident is The level of The The investigation Rectification of
In the course of the investigation, the investigator has the right to review relevant information of the entity investigation investigated, responsibility responsible the responsible
results will be
or department under investigation on the site and to request the departments and people involved in the team is the facts are is defined and parties may individuals or
finalized and
investigation to make explanations and clarifications on matters covered by the investigation. established recorded, and recommendations appeal departments
reported and
to investigate information is are raised for and further disciplinary will be
the involved collated. disciplinary investigations recommendations monitored.
After the investigation is concluded, the Audit and Supervision Department compiles a written report departments actions. will be
and treatment opinions and submit them to the Chairperson, the head of the CPPS Group, and will be raised.
and individuals conducted.
relevant managers. according to the
responsibility
After the investigation report is approved by the Chairperson, the Corporate Management Department determined.
will draft the punishment opinion according to the investigation report and applicable systems of the
Company, and publicize it in the Company's work platform after approval.
The report handling mechanism Process of error investigation and holding accountability
SATELLITE CHEMICAL CO., LTD.
Risk Control Information Security Risk Work Safety Risk
In accordance with the Basic Internal All system administrators must log in to the In the production area, monitoring hardware and
Control Norms for Enterprises , STL has Coordinating and managing the system through the bastion host and files are software are installed, and security thresholds
Board encrypted with software to keep information are set in the software system, with the
established an internal control management overall risk control of
system for all business activities, which falls Directors secure. automatic alarm mode on. Regular inspections
under the purview of the Board of Directors are carried out by dedicated personnel to timely
Monitoring the progress of internal screen and identify safety hazards.
and is directly supervised by management.
control and risk management Audit Committee
Business Departments, the Department of
Corporate Management, and the Audit and
Supervision Departments constitute three Monitoring the implementation
Audit and Supervision
"lines of defense". In addition, we strengthen of internal control system
Departmment Checklist
the mechanisms for work coordination documents and submitting
and information sharing and continue to quarterly written reports to the for Risk
consolidate the risk control system, which Audit Committee Identification
integrates prevention, responses, and and
reviews. The internal control management system Rectification
Business Departments Corporate Management Audit and Supervision
Department Department
Evaluate and identify key Prepare and review system Audit business activities Risk of Raw Material Risk of Market Price
Outward Investment Risk
points and difficulties in texts submitted by business whose results do not meet Price Fluctuations Fluctuations
business units expectations
Collective decision-making The marketing management A tiered decision-making
Optimize operational and Request business Assess the is adopted to reduce the risk team conducts weekly collective system is implemented.
process standards and departments to prepare implementation of of misjudging market trends. discussions based on market Investments are tracked
prepare management relevant system documents existing systems and their Hedging futures trading is conditions and sets weekly after being made and the
regulation drafts or raise according to the system deficiencies conducted for major bulk standard sales p ri ce s for results are sent to the
system construction needs construction needs raw materials. products. Company's management on
Appraise the performance a regular basis.
Report to the Corporate Collect data on KPIs every of business operators
Management Department six months to analyze and and make rationalization
to prepare and review evaluate the effectiveness suggestions for the
documents of the system Company to modify the
system process Information Security
The three "lines of defense" for internal control Measures and Systems
In terms of risk management, STL adheres to the business philosophy of "making decisions and preventing STL prioritizes information security and business information protection. We strictly comply with the
risks based on the trend". As the primary responsible entity, a business department identifies, tracks, and Cybersecurity Law of the People’s Republic of China and have internal systems in place, including the
controls key risks within its business boundaries and develops risk prevention and response strategies to Management Measures for Cyber and System Security, the Management Measures for Media and Data
prevent the occurrence of major risks. During the reporting period, the Company identified a number of risks Security, and the Management Measures for Security Incident and Emergency Response. In addition,
in information security, work safety, raw material procurement, product sales, and outward investment and we continuously optimize our information regulation and protection system to improve our information
then tracked and managed them to reduce the risk level in a timely manner. governance and security management.
SATELLITE CHEMICAL CO., LTD.
Management
Measures for
Personnel Security
Management
Management
Measures for
Measures for Media
Cyber and System
and Data Security
Security
Management
Information Security Measures for
Management
Security Incident
Measures for Asset Management Measures and Emergency
Security
and Systems Response
The certificate of STL’s classified protection of information system security
STL’s information security management measures and systems
Risk Management
Security Initiatives
We assessed information security risks in the year and identified 13 of them. In response to problems like
To ensure the effectiveness of the Company's information and data security management, we have adopted uncontrolled account authority management, bad emergency response for system security, omissions in the
a number of technical and human security measures to protect the information and privacy of all employees, backup review mechanism, and a weak network anti-virus system, we have implemented an assignment
customers, suppliers, and other stakeholders, and we are certified for the classified protection of information management model for account authority, made emergency response plans, changed the backup strategy,
system security. and rolled out an equipment upgrade and iteration plan to make sure the security and stability of our
information system.
Technical Initiatives
An attack and defense exercise in collaboration with a professional company to
Case
comprehensively improve the Company’s emergency response to information security
The core production operation control network is physically isolated from the office network.
A firewall is deployed at the core exit of the external network to reduce the external exposure. To increase the Company’s risk prevention awareness and systematically enhance its security emergency
strength, the Company’s Information Security Center worked with a third-party professional company to
Traffic probes and a state sensing platform are deployed to monitor network traffic and security launch a simulation exercise of malicious tampering attacks against the WEB page to examine employees’
dynamics and provide timely alerts. emergency response in daily operation and maintenance. Through the exercise, it has been established
that when the WEB page is maliciously tampered, the security working team will immediately report to the
Antivirus software is installed on all PC terminals, and all files are encrypted in the ground. command team, who will start the initial response mechanism of the emergency plan. The security operation
and maintenance team makes the correct disposal to restore the WEB page to the normal state as soon
as possible. A summary of the emergency exercise was made afterwards. The exercise optimized the
Human Initiatives Information Security Center’s emergency disposal process and improved STL’s ability to respond to cyber
and information security emergencies.
Access authority is assigned according to position responsibilities and materials are
watermarked to ensure information security.
Servers and backend management can only be logged in to via the bastion host, and the login
log is regularly reviewed. Intensive ESG Governance
Every important password is divided and kept by two people. The two people must enter the ESG governance is an essential component of corporate governance and a critical factor in an enterprise's
password simultaneously to enter the system background. long-term development. STL places a premium on integrating ESG development with business operations.
We are advancing ESG in a systematic manner by establishing an ESG governance structure and defining
The Company has developed security and prevention systems and improved the information
the roles and responsibilities of each level. To provide clear guidance for deepening ESG governance, we
security management system.
actively communicate with stakeholders and comprehensively identify material ESG topics.
SATELLITE CHEMICAL CO., LTD.
ESG Governance Structure Communication with Stakeholders
STL has established an ESG governance structure consisting of the Board of Directors, the Strategy
We are committed to developing strong partnerships and mutually beneficial relationships with our internal
Committee, and the ESG Working Group to systematically promote the coordination and supervision of
and external stakeholders, with the goal of achieving win-win outcomes. Shareholders and investors,
the Company's sustainable development and improve all employees' understanding and awareness of
governments and regulators, customers, employees, suppliers, and the general public are among our most
and awareness of ESG issues. As the highest decision-making body, the Board of Directors is ultimately
important stakeholders. We maintained active communication with our stakeholders during the reporting
responsible for ESG issues. It deliberates and approves ESG strategies and objectives and monitors
period in order to understand their demands and concerns, and we responded to them with practical actions.
and inspects ESG policy implementation and goal progress. The Strategy Committee, which guides and
supervises the Company's ESG management and practices, is responsible for the core ESG management.
The ESG Working Group, comprised of departments of the headquarters, subsidiaries, production bases, and
business units, is in charge of carrying out day-to-day ESG work and improving the Company's performance
in all areas of ESG. The Strategy Committee and the ESG Working Group report and provide feedback on
the progress of ESG work on a regular basis to the Board of Directors, allowing it to better understand and Stakeholders Key Topics of Communication
evaluate the current state of the Company's ESG development and make more scientific and effective ESG Concerns Channels
decisions.
General Meeting of Annual
Coordinating, overseeing, and deciding on ESG matters: Corporate governance Shareholders performance
roadshow
Board of Deciding on and examining the Approving ESG reports and relevant Shareholders Company
Risk management
Directors Company’s sustainable development information disclosure and investors announcements Hotline
strategies and goals Business ethics
Deliberating and confirming the risks and Investor surveys E-mail
Monitoring and reviewing the progress significance of ESG-related risks of the
Authorizing of ESG related policies and objectives Company
Reporting to
Managing, supervising, and progressing ESG matters: Product safety and quality
Hotline Visits to customers
Strategy Involved in advising on the Company’s ESG Reviewing and advising on the Innovation and R&D
Committee E-mail Satisfaction surveys
strategy Company’s ESG reports
Customers Customer relationship
WeChat official account Customers’
Identifying and assessing substantial ESG Implementing other matters management
complaints
risks and opportunities authorized by the Board of Company’s official
Directors Privacy and information security
Supervising website
Overseeing the progress of ESG matters
Reporting to
Coordinating and implementing ESG matters:
ESG Working Public welfare Public welfare campaigns
Group Coordinating and progressing ESG Preparing ESG reports
The Responding to climate change
work across the Company News coverage
Completing other ESG-related public
Managing ESG risks in day-to-day matters Energy management Open days
operations
STL’s ESG governance structure
SATELLITE CHEMICAL CO., LTD.
Through peer benchmarking analyses, external policy research, and industry trend
Employees’ Employees’ seminars Identifying surveys, and based on our own business development strategy and corporate
Conference potential characteristics, we identify potentially material topics that reflect the impact of our
Hotline for employees’
Employee rights and benefits topics business on the internal and external environment.
Chairperson’s Mailbox supervision and
Employee training and suggestions
Employees Employees’ events
development Assessing Taking into account of peer practices, stakeholders’ concerns, and the Company’s
Bulletin boards priority
Talks with employees business development direction, we analyze the key areas of the Company’s ESG
Occupational health and safety topics undertakings, assess priority topics, and draw up a materiality matrix.
Employees’ Suggestion
Employee
Box
engagement surveys
Reporting We verify and confirm the materiality matrix based on the Company’s strategic plan
material and submit it to the Board of Directors for review and approval. In addition, we disclose
topics the Company’s performance on the topics in our reports.
Process of the material topic analysis
Business ethics Suppliers’ WeChat official
Supply chain management conferences account
Suppliers Company’s official Regular visits Extremely Important
Boosting industry development
website Safety Waste
Protection of intellectual property Integrity reports management of management
rights Hotline chemicals
Responding to
climate change
Environmental Social Governance Occupational Supply chain
topics topics topics health and safety management
Product safety Innovation and
and quality R&D
Employee training and development
Corporate governance Extremely
Risk management Corporate
Important
Information Company’s official governance
Importance to stakeholders
Boosting industrydevelopment
Governments disclosure website
and Energy management Important
Press releases Regular
regulators Clean energy
Clean technology development communication Water
Important
development management
Responding to climate change Energy
management
Customer Promoting
elationship industry
management development
Material Topics Relevant
Protection of intellectual Public welfare
property rights
Privacy and Employees
The impact of the Company's operations on the internal and external environment has been highlighted information rights and
by STL through peer benchmarking analyses, external policy research, and industry trend surveys. Importance to STL’s operations security interests
Furthermore, we have screened out 21 ESG topics, including six environmental topics, 11 social topics, Sustainable Business
and four governance topics, and drawn them into a materiality matrix in consideration of the Company's operations ethics
characteristics, the state of sustainable development at the time, and stakeholders' priorities. STL’s materiality matrix
Eco-friendliness to
Create a Better Home
STL adheres to the business philosophy of "contribute
STL quality products, create a better life", further
implements green development, continuously
strengthens environmental management, and
improves environmental protection. We focus on
the prevention and control of "Three Wastes" (i.e.
wastewater, waste gas, and solid waste), strengthen
the control for carbon peaking and carbon neutrality,
and contribute to the development of ecological
civilization. We always see environmental protection,
energy conservation, and emission reduction as a
crucial component of our social responsibility, follow
the environmental protection philosophy of "taking
environmental protection seriously as our products",
and devote ourselves to developing into a green and
ecological modern chemical enterprise.
Strengthening Environmental Management
Optimizing the Use of Resources
Pollution Emissions Control
SATELLITE CHEMICAL CO., LTD.
Strengthening Environmental STL's environmental management inputs in 2022
Management
Total investment Time invested in Environmental
STL has always viewed sophisticated environmental management as the cornerstone of its green in environmental environmental punishment
development, with a focus on "building an environmentally-friendly enterprise". Encouraged by relevant treatment RMB treatment payments RMB
national and local policies, we have made concrete efforts to fulfill our commitment to reducing environmental 1,428.57 million 62,130 hours 0
impact, revised and improved our environmental protection system, and integrated environmental
management into all aspects of our daily operations.
Number of environmental Number of environmental
protection training hours protection training sessions
Environmental Management System 4,821 1,826
We strictly abide by all applicable laws and regulations in the locations where we conduct business, including the Number of environmental Environmental punishment
Environmental Protection Law of the People's Republic of China and the Law of the People's Republic of China on protection training participants accidents STL's HSE Management
Environmental Impact Assessment. To standardize and limit our routine production and operations, we implement 31,255 0 Manual (environmental
industry standards like the Emission Standard of Pollutants for Petroleum Chemistry Industry and the Emission protection)
Standard of Pollutants for Synthetic Resin Industry. The Company collects, identifies, and evaluates compliance
with applicable environmental protection laws and regulations every year and created a number of Health, Safety,
and Environmental (HSE) management systems, such as the Environmental Protection Responsibility System ?Environmental Management Initiatives
and the Safety and Environmental Protection Facilities Management System, in order to standardize the entire
production and operations process.
The Company has implemented a number of initiatives in its business operations to reduce environmental
While implementing national standards and regulations, we strictly stick to local standards, including the Ultra- impact according to the environmental management requirements by stepping up environmental monitoring,
low Emission Transformation (In-depth Treatment) Work Plan for Key Industries and Facilities in Lianyungang ensuring clean production, and putting in place pollution prevention measures to enhance its environmental
City, the Notice on Leakage Detection and Repair (LDAR) , the Emission Standards for Major Water Pollutants in management and pursue green development.
the Chemical Industry , the Emission Standards for Volatile Organic Compounds the Chemical Industry in Jiangsu
Province , and other control requirements that are much more demanding than national standards. Implement
Commission third-party institutions to conduct monthly emission data monitoring
environmental
We implement environmental management under the environmental protection philosophy of "taking of environmentally friendly facilities
monitoring
environmental protection seriously as our products". The Board of Directors has set up a Strategy Committee,
which manages and guides matters related to environmental management such as strategic planning, Regulate pollution Implement the relevant requirements in the emission permit, meet pollutants
environmental target setting, environmental policy formulation and implementation management, climate emissions emission standards and control the total emissions in 2022
change risk assessment, environmental performance, and environmental information disclosure, and reporting
to the Board of Directors. During the reporting period, all the Company's production bases and business units
Identify pollution Conduct in-depth investigations and rectification of VOCs and odor sources, and
strengthened the mode in which everyone engages in management. They have both built an environmental
sources LDAR testing
management structure with the general manager fulfilling the overall responsibility under the management of
the Safety and Environmental Committee through the inter-departmental collaboration, and formed a thorough
environmental management system with a clear division of labor and responsibility among all departments. Strengthen special Conduct daily environmental inspections and monthly special environmental
inspections inspections to implement corrective measures
Enhance the control capabilities of pollutant treatment processes, transfer and
Enhance control
treat wastewater promptly, and implement compliant transfer and disposal of
capabilities
hazardous waste
STL's environmental management initiative
SATELLITE CHEMICAL CO., LTD.
?Honors and Awards in Environmental Protection
During the reporting period, the Company was recognized and praised by various parties for its impressive
Environmental Management System Certification records in environmental management and green development, and earned a number of green awards:
During the reporting period, the Company passed the ISO 14001 environmental management system Awardee Award Awarded by
certification audit, applied for and received the Pollutant Discharge Permit and Sewage Drainage Permit, Green Factory in the Petroleum and China Petroleum and Chemical
continued to optimize the effectiveness of pollution control and emission reduction, and concentrated Chemical Industry 2022 Industry Federation
on the project implementation requirements of "economic benefits, legal compliance, and environmental
Green Supply Chain in the Petroleum China Petroleum and Chemical
improvement". We took a number of steps to strengthen our environmental management capabilities. All
and Chemical Industry 2022 Industry Federation
production bases and business units had obtained environmental management system certification by the
end of the reporting period. National Green Supply Chain Ministry of Industry and Information
Satellite Chemical
Management Enterprise Technology
Co., Ltd.
The Company actively promotes and conducts external third-party system certification and review. Our Top Ten "Beautiful Factory Development
Jiaxing Municipal Federation of Trade
production bases and business units conduct internal audit and external review once a year, and a thorough Demonstration Entity" in Jiaxing City in
Unions
external audit to renew the system certification every three years, with both internal and external audits 2022
covering all of our business areas. Outstanding Enterprise in Jiaxing Municipal Federation of Trade
Environmental Protection Unions
Lianyungang Ethylene Derivatives
Lianyungang Municipal Science and
Green New Material Engineering
Technology Bureau
Technology Research Center
证书编号：38522ETJ0F0R0M
Lianyungang
证书有效期从：2022-11-25至2025-11-24
本张证书有效期至：2023-11-24
Petrochemical Co.,
版本号：A1
环境管理体系认证证书
Province Industry and Information Technology
Ltd.
发
兹证明
Jiangsu Provincial Department of
湖北山特莱新材料有限公司
统一社会信用代码：91420684MA48UP230H
注册地址：湖北省襄阳市宜城雷雁大道（雷河镇胡耳村）
Ecology and Environment and Jiangsu
经营地址：湖北省襄阳市宜城雷雁大道10号
签
环境管理体系符合如下标准
Development
GB/T 24001-2016/ISO 14001:2015
Federation of Industry and Commerce
已
证书覆盖范围
Zhejiang Satellite Jiaxing Green Factory (The First batch Jiaxing Municipal Bureau of Economic
水溶性环保聚脂浆料的生产(不涉及危险化学品许可资质范围)及其相关管理活动
本证书在国家规定的行政许可、资质、强制性产品认证有效期内并应于证书有效期前，按规定执行监督审
Energy Co., Ltd. in 2022) and Information Technology
书
核并经审核合格的情况下保持有效，本证书可在本机构网站 http://www.nsyglobal.com、中国国家认监委官
方网站 http://www.cnca.gov.cn 和 IAF 全球统一数据库 http://www.iafcertsearch.org 查询。
Pinghu Petro Jiaxing Green Factory (The second Jiaxing Municipal Bureau of Economic
Chemical Co., Ltd. batch in 2022) and Information Technology
证
Niche-sector Leaders with High Market Ministry of Industry and Information
新标元认证（上海）有限公司
Hubei Satellite New
Share and Strong Innovation Capacity Technology of the People's Republic of
地址：中国（上海）自由贸易试验区金港路211号中新传媒大厦1002-1003室
电话：021-50562313；邮箱：info@nsyglobal.com
Materials Co., Ltd.
in Hubei Province China
Environmental Objective Setting
To establish its brand in environmental protection, STL has set environmental objectives based on its
business development and operations to continuously improve its environmental management capabilities,
prioritized ecological protection and pursued green development throughout its production and operations
processes, and accelerated the transition from passive management to active planning.
The Company set environmental objectives for 2022 to manage water use, energy consumption, toxic
emissions, waste, and greenhouse gas emissions, respectively. To actively promote green development,
strict quantitative targets have been established for environmental discharge volume, the pollutant process
STL's environmental management system certification treatment pass rate, and the LDAR rate.
SATELLITE CHEMICAL CO., LTD.
Ensure a 3% reduction in
total water consumption,
Water
Energy
Ensure a 3% reduction in
total energy consumption,
Environmental Impact Monitoring
Consumption
Management
STL integrates environmental factor identification and environmental monitoring throughout its production
Ensure a pollutant Toxic emissions Greenhouse Reduce greenhouse gas and operations according to the principles of "economic efficiency, legal compliance, and environmental
process compliance rate and waste gas emission emissions by 180,000 improvement". The Company adheres strictly to national industry standards, including the Self-Monitoring
of 100% management management metric tons of carbon Technology Guidelines for Pollution Sources: General Rule and the Self-Monitoring Technology Guidelines
dioxide equivalent for Pollution Sources: Petroleum Chemistry Industry , and the management requirements of the Pollutant
STL's environmental objectives in 2022 Discharge Permit. We developed annual monitoring programs and monitored pollutant emissions in real-
time using manual testing, online environmental protection monitoring devices, environmental protection
monitoring platforms, the MES system, and the LIMS system to ensure pollutant emissions up to standards.
Comprehensively improved environmental management and accelerated the
Case
achievement of environmental goals In the meantime, the Company commissions qualified third-party CMA testing organizations to conduct tests
on plant wastewater, rainwater, organized and unorganized exhaust gases, noise at the plant boundary, soil,
In 2022, to fully implement environmental management and promote the achievement of environmental
and groundwater in accordance with the Pollutant Discharge Permit's management requirements, ensuring
targets, Lianyungang Petrochemical Co., Ltd. optimized its management of the "Three Wastes" to
that all monitoring points and testing factors are covered.
meet the emission standards, extensively tapped into its emission reduction capacity, and actively
implemented key tasks such as VOC rectification, LDAR, and establishing data platforms for
During the reporting period, the Company established
environmental protection facilities. The company made full use of advanced environmental monitoring
a three-dimensional environmental management and
means and the environmental data monitoring system to fully realize the real-time supervision of The Company organized
supervision network under the guidance and supervision
pollutant emissions and dynamic emission reduction adjustment to achieve emission reduction targets.
of third-party environmental monitoring and maintenance
entities, government authorities, and environmental experts
As of the end of the reporting period, all environmental objectives for 2022 had been met, including total to be subject to the joint supervision of the surrounding environmental monitoring in 2022
emissions of wastewater, waste gas, and solid waste, the LDAR rate, and the pollutant process treatment citizens and businesses. These efforts are designed to
compliance rate. In the future, the Company will further deconstruct each of its goals, map out the ensure environmental protection compliance operations.
implementation strategy, and monitor the progress of goal attainment.
Environmental Performance Management
Emergency Management System
STL places a strong emphasis on environmental performance. We have established a strict target achievement
responsibility system and performed performance appraisal in accordance with the HSE Performance
Appraisal Management Measures , which link environmental benefits to the remuneration of the responsible. STL prioritizes the improvement of its emergency plan for environmental emergencies and preparing
We have strictly implemented requirements such as the Incident Management System, the Ten Zero Tolerance environmental safety emergency materials and equipment to enhance its capacity for preventing and
Principles, and the Ten Safety Disciplines to clarify responsibilities, enforce rewards and punishment, and responding to environmental incidents. The Company has prepared an emergency plan for environmental
motivate our employees to actively perform their environmental responsibilities. emergencies and submitted it to the Ecology and Environment Department for the record. The plan specifies
the emergency organization, preparation, response, disposal, recovery, and other accident-related matters
To make comprehensive deployment in this area throughout the year, the Company issued the STL [2022] No. and standardizes the Company's process for responding to and disposing of environmental emergencies.
the start of 2022. To fulfill the environmental protection responsibility at all levels, the Company requires that To enhance our employees' ability to respond to environmental emergencies, we have worked to raise their
the president, as the first person responsible, take full responsibility for the corporate safety and environmental risk awareness. During the reporting period, the production bases and business units organized various
protection work and that the leadership sign the safety and environmental protection responsibility letter. We emergency drills to respond to environmental emergencies according to the annual plan. The drills were
have also put in place a comprehensive safety and environmental performance assessment system and successfully completed and yielded the desired results.
annual KPI assessment indexes related to HSE in the performance of production executives in charge, eight
of which are concerned with environmental protection. We have put in place a "one-vote veto" system, linked All production bases are outfitted with a full-time firefighting department and a pool designed to keep the
environmental benefits to managers' pay, and delegated responsibilities to frontline teams and employees. Any polluted water in the event of an accident, which can effectively respond to and handle environmental
violations of HSE regulations or Safety Committee requirements will be held accountable in accordance with accidents in a timely manner.
relevant national laws and corporate systems, according to the Company.
SATELLITE CHEMICAL CO., LTD.
Energy Management
During the reporting period, the
Company conducted
with 6,153 and 5,982
participants in safety participants in emergency STL strictly adheres to the Energy Conservation Law
Law of the People's Republic of China, the Energy
Industry Standardization Management and other
regulations. We identify the requirements of energy
laws and regulations for the Company, and translate
Conducted environmental emergency drills to strengthen the capability to them into control indicators and requirements
Case
respond to emergencies in our operations. We have formulated internal
policies such as the Control Procedures for Energy
To further enhance the emergency response speed and rescue capability of employees, Lianyungang Management Programs and the Control Procedures
Petrochemical Co., Ltd. organized two company-level environmental emergency drills in 2022, including for Energy Evaluation and Review, practiced energy
one for district-level radiation accidents in cooperation with the Xuwei New District authority, which management commitments in processes such as
comprehensively tested its emergency response speed and capability in the event of emergency new project energy evaluation and acceptance,
environmental incidents. It also tested the effectiveness and applicability of its emergency response plan. obsolete equipment elimination, and energy
consumption limits, and implemented standardized
energy-saving supervision and management for the
entire production and operations.
The production bases and business units have
actively responded to the Company's call for
energy management by implementing measures
such as optimizing their energy mix, phasing out
obsolete equipment, enhancing energy efficiency,
and optimizing production processes. We have
taken multiple measures to coordinate energy
consumption and strengthen the foundation of
energy management. As of the end of the reporting
period, all production bases and business units had
obtained certification for their energy management
systems.
An emergency response drill at Lianyungang Petrochemical Co., Ltd.
STL adopts lightweight raw materials to produce
olefins and leads the industry in comprehensive
energy consumption.
Optimizing the Use of Resources Our energy intensity is less than
The Company actively promotes green and clean development, strives to strike a balance between corporate
development and environmental protection, continuously improves the development of energy management which is significantly lower than
systems, actively develops and deploys clean energy, and works to become a green and economical enterprise in
all aspects.
the national benchmark of 590 kg of
standard oil per metric ton.
SATELLITE CHEMICAL CO., LTD.
Case Application of lithium bromide to recover condensate and improve energy efficiency
Water Conservation Management
STL places great emphasis on the management of water
To improve the efficiency of steam condensate
resources in the entire industrial chain, strictly complies
recycling, Satellite Science & Technology Co.,
Ltd. has designed a set of in-depth waste heat It is expected to save 1.849 with the Water Law of the People's Republic of China
and other pertinent laws and regulations, has formulated
Among them, Pinghu Base adopted
utilization absorption refrigeration unit, to recycle million kWh of electricity water reuse measures in 2022, saving
internal policies such as the Energy Management System
the heat of steam condensate generated by
the obsolete facilities and to replace the plant's
and the Water Quality Management System, improves
water efficiency, and effectively conserves water resources
purchased pure water by recycling the steam
condensate after cooling down to turn into the reduce 1,862 metric tons
through multiple initiatives such as equipment optimization
and technological transformation and innovation.
pure water required for our production. The project of CO2 emissions annually
recycles waste heat, solves heat pollution to the Lianyungang Base adopted measures to
The Company implements water conservation
environment, recycles the steam condensate to
management in all aspects of production and operations. recycle and reuse process condensate in
save energy, and protects the environment.
We reduce fresh water consumption at the source, actively
promote advanced water conservation technologies and 2022, saving 286,800 metric tons of
equipment in production, enforce a number of water water;
recycling initiatives, and bolster water conservation
promotion to raise the awareness of water conservation
among all our employees. During the reporting period,
the Company implemented the entire process of water reclaimed water reuse measures saved
Build an energy management platform to Phase out obsolete motors and chillers and resource management from water saving at the source
track energy consumption and production replace them with energy-efficient ones that to wastewater reuse in all business areas and achieved 4,932,600 metric tons of water.
data and analyze them to find the meet energy efficiency rating requirements remarkable results, and was awarded "Water Saving
problematic areas and make adjustments Benchmark Enterprise in Zhejiang Province".
Enhance the recovery of steam condensate and conductive heat flow to achieve recycling
Water
Collect rainwater around the fire fighting pool, pump it to the water treatment station, and
Conduct LDAR testing as planned, Optimize production process, and organize recycling
then use it for replenishing the fire fighting pool
complete repair timely, reduce leakage, the technical reform of the hot water tank of
and promote cost reduction and efficiency liquid chlorine vaporizers and refrigeration
initiatives machines, etc. Strengthen the pelletization process control and reduce the frequency of pelletizing water
Process replacement
upgrade Use of surface evaporative air cooler and circulating cooling water air for cooling device
in the circulating cooling technology
Replace outdated bypass filters with energy-saving ones
Provide energy saving and low carbon Reasonably arrange the production plan, Equipment
Strengthen the inspection of various water supply pipelines in plants, and conduct prompt
training, hold cost reduction and efficiency adjust the schedule of plant maintenance, optimization
maintenance to avoid leakage
promotion meetings, follow up projects and reduce unnecessary energy
implementation, and solve identified consumption
Use backwash water for pharmaceutical dilution to improve the water recycling rate
difficulties promptly
Improve water Use phosphorus-free/low phosphorus water treatment chemicals for circulating cooling
efficiency water treatment technology, which can make the circulating water system reach a 7-time
STL's energy management initiatives concentration and achieve a water-saving rate of 12.5%
SATELLITE CHEMICAL CO., LTD.
The Company is planning to use lithium bromide absorption chillers and waste heat-based and steam-driven
Water Risk Assessment water pump units to consume surplus steam produced at its bases and implement the green power and
photovoltaic use. So far, some production bases have signed preliminary technical agreements on photovoltaic
The Company has conducted relevant identification and risk assessment to identify potential risks in access power generation projects, actively made deployment in clean energy, and promoted the low-carbon transition.
to water resources for each production base and business unit.
Case Actively developed photovoltaic systems to respond to the call for clean energy
Clean Energy
To further implement our "H?" culture, the SAP Business Unit has implemented energy control, energy
saving, and consumption reduction measures, and adopted photovoltaic power generation to realize
STL adheres to the concept of green development, responds actively to the Cleaner Production Promotion electricity self-production and self-consumption. With these efforts, it ensured functioning production
Law of the People's Republic of China , increases energy structure adjustment, focuses on low-carbon energy despite a power shortage.
transformation, gradually develops and utilizes clean energy, and is committed to becoming a leader in clean
energy supply and contributing to the improvement of the ecological environment. In 2022, the Company
stated in the STL [2022] No. 01: Notice on the Implementation of 2022 Key Work Requirements for Safety
and Environmental Protection that the company has made clean production one of its key work requirements Project Background Project Development Project Results
to improve its clean production capabilities with advanced and applicable process technology and equipment.
To promote the transition to clean energy and reduce air pollutant emissions, Jiaxing Base has incorporated According to the "three-year action The project made comprehensive The project can result in an
clean technology innovation into its overall development strategy and has implemented the transition document", the Energy Conservation use of the roof space of annual average reduction of
from diesel to natural gas substitution in the waste gas incinerator; Lianyungang Base, based on their Office of Jiaxing Science City individual buildings (plants) in 85.7 metric tons of standard
technical characteristics, has made full use of hydrogen, a by-product of ethane cracking and propane strengthened the inspections of the SAP Business Unit plant to coal, 93.58 metric tons of
dehydrogenation processes, to realize the recycling of clean energy. enterprises, strictly implemented build photovoltaic power plants. It carbon dioxide emissions,
national laws and regulations on involved the roofs of 7 buildings, 0.71 metric tons of sulfide,
The Company supplies downstream businesses in the park with hydrogen. With the continuous improvement resource conservation, environmental with a total construction area and 0.24 metric tons of
of the hydrogen pipeline network and supporting facilities, we have achieved a comprehensive utilization protection, production safety, product of 14,000 square meters, and nitrogen oxides.
capacity of 21.81 million standard cubic meters of hydrogen energy per year, which will improve the quality, and other pertinent industrial the installed capacity can
conditions for realizing the circular economy and enhancing the quality of the park. Simultaneously, we are policies, stepped up law enforcement reach 1,343.52kw according to
negotiating with several companies to provide new business opportunities for using hydrogen energy through efforts, and promoted the corporate professional PV manufacturers.
hydrogen cooperation. improvement and upgrading in
accordance with the law.
Case Made deployment in hydrogen energy to lead the industry in low-carbon development
In order to guide green and low-carbon deployment in the industry and promote low-carbon development,
STL has further made deployment in hydrogen energy based on the existing C2&C3 industry chain. A
large amount of by-product hydrogen produced in the ethane cracking and propane dehydrogenation
process, with a purity of 99.999%, can be used directly as hydrogen energy, and the process route can
reduce about 5.4 million metric tons of carbon dioxide per year compared with traditional coal hydrogen
production. The Company plans to take the following measures to make full use of green hydrogen energy:
Plan hydrogen energy utilization Work to implement the circular Plan the development of
demonstration projects in economy and renewable energy chemicals with hydrogen as
the park, including hydrogen utilization in the park, providing a raw material to form the
energy shuttles for employee green hydrogen supply for industrial chain synergy and
commuting and hydrogen enterprises, and reducing carbon create a green and low-carbon
energy storage projects dioxide emissions caused by production demonstration base
hydrogen production STL SAP Business Unit's photovoltaic project
SATELLITE CHEMICAL CO., LTD.
Raw Material Management
STL values resource utilization highly. To continuously improve the utilization rate of raw materials, we
promote industrial materials recycling through technical transformation. We developed a raw material
consumption strategy and integrated raw material consumption into departmental performance evaluation.
Key personnel in relevant production departments have been motivated to reduce production costs and
implement raw material management through the cost control and incentive mechanism.
During the reporting period, the Company's production bases and business units implemented a variety
of initiatives to improve raw material management by reducing raw material losses in storage and the
production process and increasing raw material utilization.
STL's energy management initiatives
Pollution Emissions Control
STL places a high value on pollution emission management, eliminates
environmental protection weaknesses, makes consistent pollution prevention
Spray cold Improve Increase the Upgrade Strengthen Increase the
and control efforts, enhances the control capabilities of pollutant treatment
water on process output by the glycol process production
processes, and establishes a full life-cycle pollutant management process. We
raw material stability and preventing distillation control, volume of
have bolstered environmental protection monitoring and management at each
storage tanks reduce raw leakage in our recovery optimize renewable
discharge outlet, which regulates the emission and treatment of various pollutants
to reduce material workshops system to process resource
and promotes sustainable social and environmental development.
volatile consumption improve the parameters, products
losses during recovery rate and reduce by-
storage product output
"Three Wastes" Management
STL's Major Resource Consumption in 2022
STL strictly adheres to the Atmospheric Pollution Prevention and Control Law of the People's Republic of
China, the Water Pollution Prevention and Control Law of the People's Republic of China, the Law of the
Natural gas Ethane Propane People's Republic of China on the Prevention and Control of Environmental Pollution Caused by Solid
Major direct energy
consumption 152 million cubic 94.7 thousand 10.4 thousand Wastes, and the Soil Pollution Prevention and Control Law of the People's Republic of China , and other
pertinent laws and regulations on environmental protection, as well as industry standards such as the
meters metric tons metric tons Emission Standard of Pollutants for Petroleum Chemistry Industry and the Emission Standard of Volatile
Organic Compounds for Chemical Industry . We strive to strengthen pollutant emission management,
Purchased steam establish pollutant treatment models, further optimize the treatment process, ensure that wastewater and
Purchased electricity
Indirect energy exhaust gases are discharged in accordance with the standards and that solid waste is disposed of in a
consumption 2.188 billion 1.47 million standardized manner to ensure green operations.
kWh metric tons
The Company has formulated internal policies such as the Safety and Environmental Protection Facilities
Management System , and implements the full-process pollutant management of pollutants such as
Total water consumption wastewater, waste gases, and solid waste from generation, treatment to standard emissions in accordance
Water consumption with the requirements of standard emission and total volume control. We have implemented the principle of
protection and realize the overall sustainable development.
SATELLITE CHEMICAL CO., LTD.
Wastewater Discharge Management Waste Gas Emission Management
The Company actively responds to the call for "zero and direct sewage discharge" by investigating the The Company's air pollution mainly includes volatile organic compounds (VOCs), sulfur dioxide (SO 2),
wastewater discharge thoroughly, renovating the facilities that separate rainwater and sewage, and installing nitrogen oxides (NOX) and particulate matter generated in production and operations. We have strictly
several sets of wastewater treatment equipment to manage wastewater across production processes such practiced air pollution prevention and improvement in all production bases and business units, and built
as wastewater generation, collection, reuse, and discharge. These efforts are aimed at minimizing the several sets of high-efficiency industrial waste gas recycling and treatment facilities to reduce air pollution
negative impact on nearby surface water and groundwater, as well as strengthening the prevention and emissions while recycling materials. During the reporting period, there were no cases in which emissions did
control of water pollution risks and reducing water pollution caused by our business operations. Following not meet the standards in any production base and business unit of the Company.
the implementation of these wastewater reduction initiatives, the Company reduced emissions by 6,996,000
The Company actively responds to the national emission reduction requirements to strengthen the
metric tons in 2022.
control of VOCs unorganized emissions in production waste gases, further LDAR testing, conduct routine
Conduct real-time monitoring of water pollutant discharge through online environmental protection inspections and monthly special environmental protection inspections, and
Control environmental monitoring devices to ensure real-time monitoring of all water implement corrective measures to ensure that waste gas emissions meet the standards. All production bases
at the quality data and business units are equipped with RCO treatment systems, RTO treatment systems, alkali sprayers,
Source activated carbon adsorption and other environmental protection facilities for exhaust pollutants treatment to
Optimize production process, strengthen process control, and reduce wastewater
ensure that the emission concentration is less than the required level in corresponding standards.
generation
The Company has taken targeted measures to efficiently control the exhaust gases generated across the
production process:
Collect wastewater, including production wastewater, clean wastewater, and
Classified rainwater, according to the principle of "separation of rain and sewage"
collection Wastewater, after being effectively collected, is sent to the sewage station for Fill exhaust gas to Adopt the "water spraying + honeycomb carbon adsorption"
centralized treatment absorbent products collection and treatment process
Exhaust gas from the
Adopt the "combination + blending + anaerobic + aerobic" biological process operational space of Collect and treat exhaust gases through honeycomb carbon
Enhanced grease washing and adsorption devices
to treat acrylic acid wastewater
treatment packing positions
Treat the wastewater through devices and then reuse it to reduce wastewater
Crack furnace flue gas Treat the gas with SCR denitrification and remove dust with trap
Improve the wastewater treatment capacity and closely monitor water quality Exhaust gas from the
Compliance
indicators such as chemical oxygen demand, ammonia nitrogen, and total operational space of the Adopt water spraying to emission standards
discharge
nitrogen of the treated wastewater to ensure the discharge up to standards drum washing room
Exhaust gas after Treat the gas with the "SNCR denitrification + heat waste
Case Reuse acrylic acid wastewater to reduce cost and increase efficiency incineration of waste recovery + cyclone dust removal + compound rapid cooling
liquid absorption + electrostatic dust removal"
To reuse wastewater and improve resource utilization efficiency while reducing pollution emissions,
Waste gas from
Pinghu Base has installed a wastewater recycling unit for butyl acrylate with a capacity of a 30
organic storage tanks Incinerate the gas through RTO furnaces
metric tons per hour, which pre-treats high concentration neutralized wastewater from butyl acrylate
and process
facilities and recovers p-toluenesulfonic acid, acrylic acid and dilute alkali solution which are difficult
to treat from the wastewater. The recovered p-toluenesulfonic acid and acrylic acid are reused Odor and exhaust
as raw materials in the production of butyl acrylate, and the dilute alkali solution is reused for the Adopt "biofilter + acid spray + alkali spray + activated carbon
gas from wastewater
neutralization process of butyl acrylate. The concentration of neutralized wastewater drops significantly adsorption (emergency)" treatment
treatment stations
after pretreatment by the recycling unit, which effectively reduces the workload of wastewater
treatment station and realizes emission reduction, cost reduction and efficiency improvement.
STL's main waste gas treatment initiatives
SATELLITE CHEMICAL CO., LTD.
The Company has enforced the whole process control from solid waste generation, collection, storage,
Case Full process control of production waste gas to promote high-quality and
transportation to disposal and utilization, improved the standardized hazardous waste management, established
clean production
a solid waste supervision platform, strictly supervised the hazardous waste with information technology, and
effectively prevented and controlled the environmental risks caused by hazardous waste. During the reporting
To actively fulfill its commitment to ultra-low emission, Lianyungang Petrochemical Co., Ltd. has
period, the Company managed solid waste according to the Pollutant Discharge Permit's management
continuously promoted air pollutant emission reduction and leakage prevention management through
requirements, and there were no solid waste disposal violations.
initiatives such as technology optimization and enhanced management, focusing on emission sources,
strengthening the control of the full-production process, and monitoring exhaust gas emissions in real
time. In terms of project design, the company has selected mature and advanced process technologies
at home and abroad, which are in line with clean production and can achieve the goal of high-value, Set up special warehouses
clean, and intelligent plant development. to collect solid wastes, and
conduct anti-corrosion and
Set up temporary storage anti-permeation treatment
Clean raw materials Process optimization Real-time monitoring
warehouses for hazardous on the warehouse floor to
waste to ensure that the prevent waste leaks from
hazardous waste is collected General contaminating soil and
Use ethane with little sulfur Ethylene crackers adopt Actively use LDAR testing groundwater
by type and source according solid waste
as raw material which the Lummus technology. and repair tools for
to the requirements of
is clean and has a high The exhaust gas generated production facilities, and Actively reduce solid waste,
hazardous waste management
recovery rate in cracking in the operation process complete leak testing for dry the sludge, and reduce the
units, simple process flow, is given priority to full fuel operational facilities on a water content of the sludge
and low comprehensive gas recovery, and those quarterly basis. A total of Contact qualified professional
energy consumption. that cannot be reused are 142,228 points have been waste disposal entities for
waste transfer in accordance Uniformly arrange special
Ethane crackers have disposed of by incineration registered and a total of vehicles to transport waste
lower sulfur emissions and after condensation and four LDAR tests and retests with relevant national solid
Hazardous to landfills or hand it over to
less environmental impact adsorption to meet the have been conducted waste transfer regulations
waste qualified entities for disposal
and are more advanced pertinent emission limit throughout the year on a regular basis
compared to other similar standards, reducing pollutant Install waste liquid incinerators
pollutant emission projects emissions from the source, to dispose of heavy alcohols,
process, and the end of the tar, and other hazardous
whole process wastes, and WAO devices to
dispose of waste lye
Case Installed waste liquid incineration devices to reduce hazardous waste generation
To strictly control the amount of waste generation, Pinghu Petro Chemical Co., Ltd. has built six sets
Lianyungang Petrochemical's whole process control of production waste gas
of catalytic combustion devices while establishing production facilities. The devices adopt secondary
catalytic combustion treatment, with the treatment rate of pollution factors reaching over 97%.
Pinghu Petro Chemical Co., Ltd.'s hazardous waste primarily includes acrylic acid and ester heavy
constituents. Through the waste liquid incineration system, the liquid distillation residue of acrylic acid
?Solid Waste Management and of acrylic ester can be treated, and after incineration and disposal, it can be turned into steam
through the heat exchange in the waste heat boiler to provide energy. With the construction of the
STL complies with the requirements of the Law of the People's Republic of China on the Prevention and
supporting incineration systems, the liquid distillation residue can be reduced by 25,000 metric tons
Control of Environmental Pollution Caused by Solid Wastes , adheres to the principle of "Reduce, Reuse and
per year.
Recycle" in solid waste management, and has formulated the Management Regulations on Solid Waste to
regulate the management and disposal of solid waste and to continuously promote its reduction and recycling.
SATELLITE CHEMICAL CO., LTD.
Case Chemical method recycling technology is adopted efficiently to improve the resource Soil and Noise Management
recycling efficiency
Based on its advantages in R&D, production and sales of environmentally-friendly water-soluble poly- ?Soil and Groundwater Pollution Prevention and Control
solid slurry, Hubei Satellite New Materials Co., Ltd. has applied its core technologies with independent
intellectual property rights to material recycling and reuse, improved its product performance, and
Every year, the Company prepares an annual environmental monitoring program in accordance with the
expanded the new degradable and recyclable material business.
requirements of the Pollutant Discharge and project environmental assessment, and pertinent technical
As the first high-tech enterprise producing water-soluble environmental protection polyester from waste specifications such as the Guidelines on the Identification of Potential Soil Pollution Hazards in Key
plastic bottles, Hubei Satellite New Materials Co., Ltd. has adopted chemical recycling technology Supervision Entities (for Trial Implementation) and the Technical Guidelines of Soil and Groundwater
which introduces hydrophilic groups and some high-performance monomers into polyester molecules Self-monitoring for Industrial Enterprises. We have also hired qualified third-party environmental testing
to improve its water-solubility and film-forming properties, and produce degradable environmentally companies to keep an eye on the soil and groundwater. Simultaneously, we implemented anti-corrosion
friendly protection slurry, which has been certified by Global Recyled Standard (GRS) Certification. and anti-leakage ground treatment measures in the production area, storage and transportation area, raw
material tank area, and other key areas, as well as strengthened daily inspection and inspection to prevent
Hubei Satellite New Materials Co., Ltd.'s DCS automatic production line with an annual production leakage contaminants from polluting the soil and groundwater.
capacity of 30,000 metric tons of water-soluble polyester slurry continues to run stably, providing a
recycling capacity of 26,000 metric tons of waste plastics per year. The company will continuously Groundwater pollution prevention and control measures are implemented on the basis of the "control at the
strive to build a more complete eco-friendly new material ecosystem. source, control at the end, pollution monitoring, and emergency response" principle in order to control the
entire process, including pollutant generation, leakage, diffusion, and emergency response.
Take appropriate measures to prevent and reduce pollutant leakage in the process,
Indicator Unit 2022
Control at pipelines, equipment, sewage storage, and treatment structures; and lay pipelines as
Waste Total Solid Waste 10,000 metric tons 9.42 the source visually as possible. This means that pipelines should be installed on the ground as far
Emissions of nitrogen oxides (NOX) metric ton/10,000 metric as possible so that pollutants can be detected and early detection as early as possible
per 10,000 metric tons of products tons
Emissions of sulfur dioxide (SO2) per metric ton/10,000 metric
Exhaust gas Pollution including establishing a comprehensive monitoring system, installing advanced detection
emissions Emissions of volatile organic monitoring
metric ton/10,000 metric instruments and equipment, and building scientifically and reasonably designed
compounds (VOCs) per 10,000 0.20
tons groundwater pollution monitoring wells to ensure timely pollution detection and control
metric tons of products
Emissions of particulate matter (PM) metric ton/10,000 metric
per 10,000 metric tons of products tons
Implement impermeable treatment on the ground in the polluted area to prevent spilled
Chemical oxygen demand (COD) Control at pollutants from seeping into the ground, and collect the pollutants left on the ground and
metric ton/10,000 metric
emissions per 10,000 metric tons of 41.72 the end transfer them to the sewage treatment station for treatment; impermeable treatment is
tons
products conducted by area type in exercising control at the end
Wastewater Ammonia nitrogen emissions per metric ton/10,000 metric
discharge 10,000 metric tons of products tons
Once the groundwater pollution accident occurs, immediately start the emergency plan,
Total organic carbon (TOC) Emergency
metric ton/10,000 metric and take emergency measures to control groundwater pollution so that pollution can be
emissions per 10,000 metric tons of 0.52 response
tons treated well
products
Greenhouse gas Greenhouse gas (CO2) emissions per metric ton of CO2
emissions metric ton of product equivalent/metric ton STL's soil and groundwater pollution prevention and control measures
SATELLITE CHEMICAL CO., LTD.
?Noise Control
STL strictly adheres to the Law of the People's Republic of China on the Prevention and Control of
Pollution from Environmental Noise , strengthens the identification, analysis and evaluation of noise
hazards, and enforces noise pollution control from noise sources, transmission channels, and noise
receptors in all aspects. During the reporting period, the Company conducted regular noise monitoring
at the plant boundary, and ensured that the sound environment at the plant boundary of our production
bases and business units met the requirements for third-class zone quality and had no negative impact on
the surrounding environment.
The Company has considered noise control during its plant planning and design, and arranged production
devices in zones according to their noise intensity if the process allows, with noisier devices placed or
buildings without sound sources (such as auxiliary plants, warehouses, large facilities such as towers, Carbon Produce olefins with lightweight raw materials, leading the industry in comprehensive
tanks and containers that do not produce noise, and green belts) built as far as possible on the side away reduction at energy consumption of products
from noise sensitive areas outside the plant as barriers to separate them from noise sensitive areas. the source Use higher energy-efficiency equipment
Noise-intensive machinery and equipment, such as large machine pumps and molding and packaging
machinery, are installed within the plant workshops and the machine base is damped to reduce the noise
impact on the environment inside and outside the plant. Conduct clean production review to achieve energy saving, carbon reduction, and
Carbon
pollution reduction
According to the 2022 Annual Noise Inspection Report, the Company's plant boundary meets the standard reduction in
the process Optimize product process, improve production output, and reduce greenhouse gas
limit value of a third-class zone in the Emission Standard for Industrial Enterprises Noise at Boundary (GB
emissions
time standards of a third-class zone of the Environment Quality Standard for Noise (GB 3096-2008).
Build carbonate facilities to maximize the use of carbon dioxide
Carbon
Greenhouse Gas Emission Reduction reduction at
the end
Actively recover and reuse waste heat, to reduce the workload of heating furnaces to
save fuels
STL actively responds to the national strategies of carbon peaking and carbon neutrality, implements
Zhejiang's "14th Five-Year" Plan for Industrial Green Development and the "Made in China 2025" Action STL uses lightweight raw materials to produce olefins, and its carbon intensity is significantly lower than that
Plan, and views "green and low-carbon development" and "scientific and technological innovation" as drivers of coal-to-olefins. The Company has two sets of facilities that crack ethane to ethylene with a capacity of 1.25
of high-quality development. The Company places a high value on greenhouse gas emissions management million metric tons per year, which can reduce CO2 emissions by about 22.8 million metric tons per year, and
and has established feasible carbon reduction targets based on its business type and operating conditions to two sets of propane dehydrogenation to propylene facilities with a capacity of 450,000 metric tons per year,
accelerate its transition into a low-carbon, technology-driven chemical and new material enterprise. which can reduce CO2 emissions by about 7.7 million metric tons per year. We can reduce CO2 emissions by
more than 30 million metric tons per year.
The Company's main greenhouse gas sources are fossil fuels, industrial production processes, and net
purchased electricity and heat consumption. The Company places a high value on carbon examination and
Case Implemented CO2 refining and recovery to help accelerate energy saving
and carbon reduction
accounting efforts, considers independent accounting units to be legal persons, and accounts for greenhouse
gases generated by the production system in accordance with the Guidelines for Accounting and Reporting
of Greenhouse Gas Emissions from Chemical Production Enterprises in China (for Trial Implementation) To accelerate the progress in energy saving, carbon reduction and pollution reduction, Lianyungang
and technical guidelines issued by the relevant state departments. Its scope includes all production units of Petrochemical Co., Ltd. implemented a CO2 refining and recovery project with a capacity of 300,000
manufacturing bases and business units. metric tons per year in 2022. The project establishment and design were completed in January 2022,
and the preparation of the project environmental impact assessment report was completed and
As the largest green and low-carbon raw material comprehensive utilization enterprise in China, STL has approved by the competent environmental protection authorities in the same year, and construction
positioned itself as an industry leader in the strategic transition to new energy and new materials, focusing on was started. During the reporting period, the project equipment procurement, civil construction and
energy-saving and carbon-reduction efforts from three angles: at the source, in the process, and at the end, plant construction tasks were all completed. The project was at the equipment installation stage at the
continuously empowering low-carbon factories with technology and implementing green manufacturing and end of 2022, and can recycle up to 300,000 metric tons of CO2 per year after it is put into operation.
clean production.
SATELLITE CHEMICAL CO., LTD.
?Greenhouse Gas Emission Reduction Promotion and Training Green Office
To improve understanding and comprehension of the national strategies of carbon peaking and carbon Through the green office initiative, STL supports the concept of living a low-carbon life and has developed
neutrality, the Company organized a variety of carbon emission management-related publicity and training the Implementation Rules for Seven Basic Employee Behaviors and other policies to strengthen green
activities in 2022, calling on all employees to contribute to the carbon reduction and emission reduction
office management in the office and guide all employees to practice a green and low-carbon office style. We
targets and to practice the green development concept.
encourage our employees to begin with small steps to save resources, reduce waste, strengthen the green
In the meantime, the Company educated all employees on carbon peaking and carbon neutrality through concept with a focus on details, and collaborate to create a zero-carbon future.
seminars, team meetings, and conferences held in the office daily, during shifts, and on Environment Day. As
a result of the training, the participants better understood green production, travel, office, and other carbon Encourage Air conditioners Promote the
double-sided should not be paperless office
reduction actions, and they expressed their intention to contribute to reducing global warming. printing to make kept lower than initiative by adopting
full use of paper 26 degrees the OA approval
In 2022, the Company compiled training materials on carbon peaking and carbon neutrality and conducted resources Celsius, and be system and
shut down at a OUTLOOK e-mail for
carbon emission management-related training activities for managers, covering topics such as the types
required time daily communication
of greenhouse gases, climate change caused by greenhouse gas emissions, carbon verification, carbon in the office
trading, and global carbon reduction targets.
Improve the Strengthen water Implement waste
electricity and electricity classification and
Case Conducted "dual carbon" training to strengthen the "dual carbon" concept management conservation efforts recycle and sell
system, such as and promotion, raise all kinds of paper
the time to turn our employees' products for
To enhance the understanding and grasp of the dual carbon strategy among all our employees, awareness, and
on the lights secondary use
the Polymer Emulsion Business Unit and SAP Business Unit of Jiaxing Base hired Hangzhou WIT and ACs, and incorporate water
Assessment Co. Ltd. to provide on-site training sessions themed "Interpretation of China's Carbon the time to turn and electricity
Peaking Target and Carbon Neutrality Vision", "Carbon Market, Carbon Trading, and Enterprises' on and off the conservation into
Carbon Asset Management", "Carbon Accounting and Verification" and "Carbon Peaking and Carbon equipment their daily behavior
assessment
Neutrality Path Planning". Through the above-mentioned training, all employees have grasped the
basic concept of pertinent knowledge such as "carbon peaking and carbon neutrality", had a basic STL's green office initiatives
knowledge of the carbon tax, carbon emission rights, and carbon verification, laying the foundation for
the future dual carbon efforts.
Biodiversity Conservation
STL recognizes the importance of protecting natural resources and biodiversity. We strictly adhere to
Case Promoted carbon peaking and carbon neutrality in new employees' onboarding
training and carbon reduction for all national ecological protection related requirements, implement ecological protection during the initial project
construction assessment, production, and operations, avoid projects in ecologically vulnerable areas, and
To actively carry out clean production review and practice low-carbon goals, Lianyungang implement efficient measures to lessen impacts on the ecological environment and protect biodiversity.
Petrochemical put efforts in carbon peaking and carbon neutrality during new employee onboarding
The Company's production bases and business unit projects adhere to the ecological environment control
training and environmental protection training days. The company promoted the low-carbon life from
programs, the main functional area plan and the general land use plan, and do not cross the ecological
the daily habits and lifestyles to corporate carbon reduction efforts, so as to ensure that all employees
have a clear understanding of the strategic objectives of carbon peaking and carbon neutrality after protection red line.
their join the company.
The Company continuously improves the monitoring mechanism of ecological protection and restoration
protection, implements effective measures to prevent the impact on biodiversity throughout the entire
Organized our employees to learn the latest laws and regulations to strengthen process of production, ensures the quality of ecological environment protection and biodiversity, and realizes
Case
their cognitive awareness of sustainable development. The Company had no significant incidents that harmed biodiversity during the
To strengthen the awareness of energy saving and emission reduction of all employees, Pinghu Base reporting period.
organized internal learning and training on Measures for the Administration of Carbon Emissions
Trading (Trial Implementation) and the 14th Five-Year Plan for Energy Saving, Consumption
Reduction, and Optimization of Energy Resources Allocation in Zhejiang Province. The training Make active soil and water Use APEOS-free auxiliaries Develop aldehyde-free
covered energy engineers, environmental protection engineers, accountants in all positions in the c o n s e r v a t i o n e ff o r t s i n to ensure that the products products with formaldehyde
financial management department, and leaders in charge of the relevant departments. Several construction projects, prepare are non-biotoxic and meet content lower than 16 mg/kg
external experts were invited to explain the trading process, precautions and future trends. This soil and water conservation environmental requirements to meet the requirements of
training raised the awareness of all employees and enhanced their knowledge of basic concepts, so reports, and report for the Class A textile applications
that this work was prioritized internally and made the cognitive preparation for an entry into the carbon record
trading market in the future.
STL's biodiversity conservation initiatives
People-Centricity to
Build a Harmonious
Society
STL adheres to the guiding principle that "the
company grows together with its employees and
society". We care for our employees by safeguarding
their fundamental rights and interests according to the
law and by prioritizing their growth and development
as we pursue the STL Dream with them.
Empowering Employees’ Development
Fulfill Social Responsibility
SATELLITE CHEMICAL CO., LTD.
Empowering Employees’ Development
Percentage of
Number of Employees Signing Coverage of Major Dispute
Employees a Labor Contract Social Insurance Case Involved
STL regards people as the Company’s most valuable asset and seeks out high-caliber employees through a 3,964 100% 100% 0
variety of channels. We keep open promotion channels for employees based on the needs of the Company’s
development, and we provide the necessary support for employees’ career development and personal STL’s employee data in 2022
growth. Furthermore, we continue to improve our employees’ happiness at work and in life and to create a
favorable environment for their development.
Introduction of Talent
Employees’ Rights and Interests STL adheres to the concept to "assess the talents based on their abilities and contributions in addition
to educational background and work experience" in employment. We are constantly broadening talent
introduction channels to attract high-caliber overseas technicians, senior business operators and managers
STL protects employees’ rights and interests in strict accordance with the Labor Law of the People’s
in the industry, and technical experts for production base projects, in order to build a solid talent pool for the
Republic of China, the Labor Contract Law of the People’s Republic of China, and the Regulation on Work-
development of STL, according to the Company’s strategy.
Related Injury Insurance. To fulfill our commitment to creating a legal and fair workplace and protecting our
employees’ rights and interests, we take a zero-tolerance approach to child labor and oppose all forms of
forced and compulsory labor. Furthermore, we follow national regulations regarding employees’ working
Talent Fairs
hours, national holidays, paid leaves, and overtime pay, manage employees’ occupational health and safety,
and protect female employees’ labor rights and interests. Continuous efforts are made to improve internal We participate in job fairs for candidates with a master’s or doctoral degree and overseas candidates to
supervision and communication mechanisms to ensure the rights and interests of employees. seek overseas R&D and operation management candidates with high academic qualifications.
We support employees in applying for talent projects at the provincial level or above on the Candidate +
Enterprise Platform collaborative program.
During the reporting period, STL supported four employees to be included in the national Overseas Talent
Attraction Program, one employee to be included in the national Special Support Program, and one to be
included in the Provincial Leading Talent List.
Physical Examinations Care Labor Prevention of Female
for Employees Priorities Protection Occupational Employees’ Rights Recruitment Team
Diseases and Interests
We have set up a dedicated recruitment team for professional recruitment.
STL leads the Employees Safety protection Production Female employees
We have optimized and expanded our recruitment channels by introducing three headhunting suppliers,
industry with in front-line accessories employees are entitled to
resulting in a larger platform for talent supply and more candidates of higher quality.
its physical production such as labor are provided marriage leave,
examination positions protection with a physical maternity leave, We are pilotting virtual headhunting recruitment and employees are encouraged to complete difficult talent
standards. clothing, helmets, examination for and special recruitment tasks.
Female
In 2022, we goggles, ear occupational preferential policies
employees During the reporting period, we recruited 39 people at the manager level or above and 154 people at the
offered a new plugs, and labor diseases for the periods
premium physical Employees over protection shoes every year of pregnancy, supervisor and engineer level, all of whom have a bachelor’s degree or above.
examination to 40 are provided and leaving- childbirth, and
our employees to production position physical breastfeeding
Employees Diversity in Employees
and discounted employees. They examinations to according to the
with more than
paid physical are available safeguard their law STL fully respects the differences in our employees’ cultural backgrounds and is committed to creating a
examinations to in summer and health Nursing rooms, fair and diverse workplace.
experience at the
employees’ family winter versions diapers, wet
Company
members for different wipes, sofas, and Discrimination based on nationality, race, social class, religion, and gender is prohibited in employment,
seasons in the other necessary salary and compensation, job assignment, and promotion.
year items are provided As of the end of the reporting period, STL employed 123 people of foreign nationalities and from minority
for breastfeeding
ethnic groups.
employees
STL’s measures to protect employees’ rights and interests STL’s talent introduction measures
SATELLITE CHEMICAL CO., LTD.
Compared to that in Number of Case Advancing collaboration with universities
to expand talent introduction channels STL’s Employee Training Management Model
in 2022 increased by national programs: STL is active in broadening channels for talent
introduction. We have launched projects in
collaboration with Zhejiang University, Tongji Training Planning Training Management Training Implementation Training Evaluation
Science and Technology and built platforms for The Human The HR Center Training sessions are Training effects are
the collaboration with universities and research Resources (HR) places training delivered as per to the evaluated at the
institutes. We have established provincial Center develops attendance, annual training plan. levels of reaction,
research institutes, enterprise postdoctoral annual training plans disciplines, and files learning, behaviors,
Number of new Number of Training that requires
workstations, enterprise academician for all departments at under centralized and results.
employees with a applicants funding shall to be
workstations, and national joint laboratories. the beginning of each management. It
master's or doctoral for provincial approved by the HR
In addition, we have set up scholarships year and issue them makes an overview
degree: programs: Department.
at East China University of Science and to the departments of training in the
for implementation Company’s based Training that does
Technology and Jiaxing University to enhance
not require funding
at established universities and enhance our
after being approved
by the President
on monthly training
information provided shall be organized
of the Company. by departments. and delivered by the
appeal to talented people.
STL’s talent introduction data for 2022 In the process of department, who
implementation, the shall submit training
plan may be revised materials to the HR
according to actual Department.
needs.
Employee Growth
STL promotes employees’ continuous development, shared growth with the Company, and invests in their
development. To that end, we are constantly pursuing more diverse, science-based, and efficient training,
broadening employee promotion channels, and stimulating their enthusiasm through various means, thereby
empowering them to grow in all aspects.
STL’s employee training data for 2022
?Employee Training
Training Coverage 100%
STL is dedicated to developing a world-class workforce. We organize a variety of training sessions in order
to improve our employees’ quality and professional skills, as well as to progress regulated and standardized Total Training Attendance Total Training Duration
training.
Guided by our strategic goals and based on position needs, we launch diversified training courses to improve
employees’ professional skills and job competency and support new employees in fitting in their positions
and the Company in training marketing personnel.
SATELLITE CHEMICAL CO., LTD.
Star Class Sailing Class ?Employee Incentives
STL offers the Star Class, an onboarding STL started the second phase of the STL has a solid compensation and incentive system in place. We incentivize our employees in various ways
training program for new employees, to help Sailing Class program in June 2022 to to increase their work enthusiasm and motivation and encourage them to achieve the position’s value and
fresh graduates change from students to strengthen the management workforce, self-worth.
workers, understand the Company’s history consolidate basic management, and
and corporate culture, and master the enhance managers’ professional
STL’s compensation system
methods and basic skills in the workplace. knowledge and management practice.
Star Class has enriched the training content After four months of study and practice,
and form by adding courses on culture case 30 trainees passed the examination.
sharing, workplace stress relief, workplace A differentiated Compensation The rank is aligned with Compensation is
etiquette, and time management. They compensation surveys on the the compensation level given play to as
facilitate the trainees to transform, integrate, system is in place, market, the industry, based on position value, incentives and
and be enhanced through learning, with the range the region, and ability, competency, guidance. More pay
engagement, and experience. determined by competitors are performance, and for more work is
position value and regularly conducted results. advocated. No cap is
the level determined to ensure that The principles of put on compensation
by personal value. the Company’s distribution according incentives.
compensation is to work, efficiency
competitive and in first, and fair and
the leading position sustainable development
in the industry. are upheld and a
sound compensation
broadband system is in
place.
Marketing Elite Training Employees’ Skill Competitions
During the reporting period, STL sent STL is constantly expanding its employees’ career development opportunities and promotion channels.
During the reporting period, STL launched
special marketing training courses for
competitions at the district level or above. of promotion programs. We also motivate employees by establishing incentive mechanisms like the Spot
employees at the director ’s assistant
Among them, four won first prizes, six won Premium and the Eagle Plan and promoting incentive schemes like the Precise Value Incentive, Profit
level and above, regional managers, and
second prizes, and two won third prizes. Sharing Scheme, Equity Incentive Scheme, and Academic Advancement Reimbursement. These initiatives
supervisors, to strengthen marketing
provide enough motivation and support for our employees’ ongoing development.
personnel training. The courses were
about marketing strategies, key account
acquisition, and customer maintenance and Employee Care
management.
STL places a high value on its employees’ physical and mental health, shows concern for their well-being,
and lends a helping hand when they need it in both work and personal situations. During the report period, by
giving our employees more unrestricted communication channels and regularly hosting a variety of employee
events, we put employee care into practice during the reporting period.
?Communication with Employees
In order to listen to employees, offer them emotional support, and help them with their work and personal
problems, we have resources like employee seminars, the Chairperson’s Mailbox, employee supervision, and
suggestion hotlines. STL conducted more than 1,400 employee interviews over the course of the reporting
period and collected 4,343 samples from the Gallup Q12 engagement survey, yielding a grand mean score
STL’s employee training programs in 2022 of 4.26, which is higher than the 75% quartile score for international businesses.
SATELLITE CHEMICAL CO., LTD.
Assistances for Assistances for School
Tree Planting Day
Percentage of Number of
Sports meeting
Employees' Medical Attending of Employees'
Performance Interviews Interviews Treatment Children
Gym
STL’s employee communication results in 2022
counseling room
Psychological
Staff canteen
Holding regular employee representatives’ conferences to listen to employees
Reading
room
The organizational function of the trade union is given full play. Employee representatives’
conferences are held regularly to let employee representatives’ opinions be heard and to
deliberate major decisions such as adjustments to the Company’s compensation and benefits
and labor discipline system. STL’s employee events in 2022
STL actively incorporates environmental initiatives into employee events. In honor of the 30th anniversary
of the founding of Satellite Group, STL organized employees to hold fundraising walks and fitness walks
around the idea of environmentally friendly and low-carbon development. These actions communicated STL’s
Collecting employees’ needs in employee interviews commitment to environmentally friendly and low-carbon practices while promoting the idea of science-based
lifestyles among employees.
Executives communicate with employees to enhance their sense of integration and belonging.
On December 10, 2022, a fitness walking event themed by "Leading a Green, Low-Carbon, and
A regular communication mechanism between executives and employees is in place. Employees’ Healthy Lifestyle and Sharing the Beauty of Chemistry with the World" was held to celebrate the
needs at work are collected at new employees’ probationary interviews and monthly and annual 30th anniversary of the founding of Satellite Group, STL’s controlling shareholder. Nearly 300 people
performance interviews, where assistance and counseling are provided. participated in the event.
On December 11, more than 300 employees from Lianyungang Base 700 kilometers away participated
STL’s employee communication measures in the first "Green Petrochemical Fitness" Walk in Xuxu New District, Lianyungang, Jiangsu Province.
They interacted with STL employees in Jiaxing in a unique way,to celebrate the 30th anniversary of the
founding of Satellite Group.
??Employee Events
In order to further boost their happiness and sense of belonging, we occasionally hosted a wide variety of
recreational events during the reporting period, including birthday parties, the New Year’s Eve dinner, and
sporting events. For employees to experience the warmth and care of the Company, we also offer a variety
of benefits tailored to their needs both at work and in their personal lives.
Gifts for the needy
at theMid-Autumn
STL's fitness walk to celebrate the 30th anniversary of the founding of Satellite Group
Dragon Boat
Mid-Autumn
Festival
Festival
Festival
Employee Benefits
STL is committed to providing a wide range of benefits to its employees. They include free housing,
commuter shuttles, and family visit allowances designed to meet employees’ needs at work and in their
personal lives, such as housing, commuting, health, and family visits. These benefits demonstrate the
Company’s warmth and concern for its employees.
SATELLITE CHEMICAL CO., LTD.
Safety and Employees are provided with safety allowances, health care allowances, and Occupational Health and Safety
health benefits: physical examinations for occupational diseases.
STL prioritizes the health and safety of its employees. We strictly adhere to the Work Safety Law of the
Commercial Employees are provided with employer’s liability insurance, work safety liability People’s Republic of China and the Law of the People’s Republic of China on the Prevention and Control
insurance: insurance, and group accident insurance. of Occupational Diseases . We created and improved internal occupational health and safety policies and
systems and established a solid occupational health and safety management system. Clear standards for
the Company’s internal occupational health and safety management have been established and validated in
Work-related Employees are provided with night shift and duty allowances and full attendance order to protect employees’ health and safety in all aspects.
benefits: bonus.
We have always considered "strengthening occupational safety management" to be an HSE priority, and
The Five Hearts we follow the occupational health policy of "putting emphasis on prevention and combining prevention
Employees are provided with the Company’s own canteen and meal subsidies. with treatment". We effectively control occupational health and safety risks and continuously improve our
canteen:
occupational health management by developing soft power and installing hardware on-site.
STL
Employees are provided with fully equipped accommodation for free.
Apartments:
Special inspections, Regular training is provided Each team must have
workshop self-inspections, on safety, environmental at least one employee
Commuter cross-inspections, team protection, occupational representative sent to be
Employees at production bases are provided with free commuter shuttles. self-inspections, and routine health, fire safety, and traffic trained and certified for
shuttles:
inspections by managers safety. the Red Cross first-aiders.
are performed to eliminate The representatives shall
Housing hidden dangers. provide training for their
Employees are provided with housing subsidies.
benefits: teammates to improve their
first aid knowledge.
Family visit
Employees are provided with family visit allowances.
allowances:
All employees are equipped Regularly occupational For special positions involving
with sound labor protective physical examinations are dust, eight measures are taken,
STL’s employee benefits in 2022
equipment based on to the provided according to the namely technical innovation,
occupational health risk and hazard factors of employees’ wet operation, confined dust
Promotion of Corporate Culture safety risk of the site. operation sites. Third-party sources, ventilation and dust
professional organizations are removal, personal protection,
To increase our employees’ awareness of "sincerely caring for the enterprise and working hard" and regularly engaged to conduct strengthening management,
"pragmatic, committed, and result-oriented", we practice our culture in our daily work and have realized occupational hazard tests and publicity and education,
that "culture must be internalized in mind, externalized in action". Throughout the reporting period, we held issue official test reports for the occupational health inspection.
several sharing sessions to practice our culture and gave emphasis to managers’ core roles in culture Company’s on-site operation With effective technical, physical,
identification, inheritance, and practice. sites. and human prevention, we
protect employees’ health and
safety at work.
STL’s data of sharing sessions for practicing corporate culture in 2022
STL’s measures for securing occupational health and safety
In 2022, we increased our occupational health and safety promotion and provided occupational health
training to increase employees’ occupational health awareness. The training sessions covered laws,
The number of The number of The number of Total attendance Attendance of regulations, and policies concerning occupational disease prevention and control; occupational health
sharing sessions sharing sessions for typical cases to the sharing executives and guardianship management and occupational disease management; personal protective equipment
for supervisors managers sessions managers management; and the detection and daily monitoring of occupational disease hazard factors. By preparing
measures in order to create a safe and secure workplace for employees.
SATELLITE CHEMICAL CO., LTD.
Strengthening occupational health promotion to enhance employees’ health
Training on Laws and Regulations Safety Training on Personal Protection Case
and safety awareness
Training is provided on the prevention and Tr a i n i n g i s p r o v i d e d o n p e r s o n a l
To draw employees’ attention to health and safety and strengthen their awareness of protecting
control of occupational diseases, with a protective equipment (PPE), including
occupational health, Jiaxing Base implements the occupational health policy of "putting emphasis
focus on the Law on the Prevention and the functions of PPE and how to wear,
on prevention and combining prevention with treatment". It has developed Provisions on the
Control of Occupational Diseases, the inspect, maintain, and dispose of it.
Administration of Occupational Health , in which it sets the procedures of occupational disease
Administrative Measures for Diagnosis
hazards, prevention and control, emergency response, training and education. Before the Promotion
and Identification of Occupational
Week for the Law on the Prevention and Control of Occupational Diseases every year, Jiaxing Base
Diseases, and the Classification and
provides training for all employees on the prevention and control of occupational diseases and the use
Catalog of Occupational Diseases.
of labor protective equipment, as well as Red Cross first-aid training, to improve employees’ first aid
skills. At present, Jiaxing Base has 149 certified first-aiders.
Training on Fault Identification and Training on Emergency Handling
Handling
It includes self-help and mutual aid As of the end of the reporting period, 100% of STL’s employees had gone through occupational physical
The training, which is about fault identification knowledge and precautions, emergency examinations, and all production bases and business units had passed the occupational health management
and handling of engineering protective treatment, and first aid methods for system (ISO 45001) certification.
equipment, is designed to ensure proper common work-related injuries.
operation of the equipment and reduce
occupational disease and safety risks.
STL’s training on occupation health and safety
证书编号：38522S68THRR0M
证书有效期从：2022-11-25至2025-11-24
本张证书有效期至：2023-11-24
版本号：A1
职业健康安全管理体系认证证书
兹证明
湖北山特莱新材料有限公司
统一社会信用代码：91420684MA48UP230H
注册地址：湖北省襄阳市宜城雷雁大道（雷河镇胡耳村）
经营地址：湖北省襄阳市宜城雷雁大道10号
职业健康安全管理体系符合如下标准
GB/T 45001-2020/ISO 45001:2018
证书覆盖范围
水溶性环保聚脂浆料的生产(不涉及危险化学品许可资质范围)及其相关管理活动
本证书在国家规定的行政许可、资质、强制性产品认证有效期内并应于证书有效期前，按规定执行监督审
核并经审核合格的情况下保持有效，本证书可在本机构网站 http://www.nsyglobal.com、中国国家认监委官
方网站 http://www.cnca.gov.cn 和 IAF 全球统一数据库 http://www.iafcertsearch.org 查询。
新标元认证（上海）有限公司
地址：中国（上海）自由贸易试验区金港路211号中新传媒大厦1002-1003室
电话：021-50562313；邮箱：info@nsyglobal.com
STL’s training on occupation health and safety STL’s certificates for the occupational health and safety management system
SATELLITE CHEMICAL CO., LTD.
Fulfill Social Responsibility STL’s education assistance undertakings in 2022
March 5,2022 August 19,2022
STL values social responsibility and strives for the Company’s and society’s harmonious development.
We use our influence in social welfare to carry out the development mission "chemicals make a better life" STL and Jiaxing Xiuzhou High STL’s Mother Yang Charity
through practical actions, injecting continuous STL power into the construction of a better society. School held a signing ceremony and the Nanhu District Charity
for the pairing agreement, under Federation launched the
which SLT donated RMB 1 million Realizing Micro Wishes charity
Social Welfare to promote education and training event to present gifts to 300
for ethnic minority students and students in Kashgar, Xinjiang,
An old Chinese proverb states, "Never forget those who fought to make the present possible for us". STL improve their education facilities. at the start of the school year.
stays focused on its mission and is concerned about people’s well-being. We have developed and grown as
a result of the state’s and society’s support. As a result, we are always grateful and repay society with love, May 31,2022 September 5,2022
bringing warmth and hope to those in need and promoting society’s healthy and virtuous development.
STL celebrated the Children’s STL donated money for 105
Day at Mingde Primary School needy students from Xinjiang
Targeted Assistance i n D a q i a o To w n , J i a x i n g , for their university entrance
Zhejiang Province, bringing exam.
"Nothing, not even mountains and oceans, can gifts and blessings to students.
separate people with shared goals and vision".
STL is always looking for new ways to help the
public. We provide targeted assistance to people in
impoverished areas in order to help them achieve
Care Through Blood Donation
common prosperity. STL provides a start-up fund to Danzhen, a STL shows great love in blood donation by conveying care in every drop of blood. As a publicly traded company,
we fulfill our social responsibility by organizing employee blood donations on a yearly basis. This initiative helps
On January 14, 2022, STL worked with Jiaxing
those in need of blood while also demonstrating STL members’ positive energy and selfless dedication.
Women’s Federation and the charity Jiaxing Nanhu
Care Station to make a targeted donation, offering
a start-up fund to Danzhen, a 23-year-old Tibetan Case Blood donation conveys STL’s love
college student in Ruo’ergai, at the Picturesque
Ruo’ergai Tibetan Culture Experience Hall in During the reporting period, the STL headquarters, Jiaxing Base, and Pinghu Base launched the 10th
Yuehe Historical District of Jiaxing. The initiative blood donation campaign, respectively, which received positive responses from employees. With
aimed to to consolidate the achievements of the assistance of medical workers and volunteers, the employees participating in the blood donation
poverty allieveiationi in western China and to make proceeded in an orderly manner with information registration, medical examination, blood test, blood
Jiaxing a model city in Zhejiang’s common wealth Nutritious meals for needy children in Houston donation, and registration for blood stem cell donation. The Company canteens prepared nutritional
demonstration area. food and soup to replenish the energy of the employees who donated blood.
?Education Assistance Led by the Board of Directors and the CPC Committee, STL has organized blood donation campaigns
for ten consecutive years and received many awards such as the Blood Donation Model. In 2022, STL
Employees’ Engagement
was awarded the Blood Donation Promotion Award of Jiaxing.
The report to the 20th CPC National Congress
STL encourages its employees to take part in public advocated for promoting educational equity and
allocating educational resources to impoverished The number
welfare undertakings. They can motivate people
of employess Blood donations
around them with their actions and convey the spirit
of great love of STL members with their strength.
areas, underperforming schools, and people in
need. STL continues to promote education and donating blood 279 since 2012 979 donations
training for students from ethnic minorities and
In March 2022, all STL USA employees participated impoverished areas in response to the CPC and Cumulative amount
The total blood of blood donated
in the Houston Food Bank’s charity program to pack
food and deliver it to local people in need of food
the state’s call. We protect the future hopes of the
country and the nation by encouraging students in donation 88,900 ml since 2012 356,200 ml
assistance. impoverished areas to strive for excellence. STL’s blood donation data in 2022
SATELLITE CHEMICAL CO., LTD.
ESG Performance Indicators
Disclosure Indicator Unit 2022
Business Performance
Operating income RMB billion 37.04
Year-on-year growth in operating income % 29.72
Total profit RMB billion 3.44
Net profit attributable to listed company
RMB billion 3.06
shareholders
Total assets RMB billion 56.39
Future Prospects Net assets attributable to the parent company
Number of R&D personnel
RMB billion
person
Percentage of R&D personnel % 25.03
Wave after wave, the mighty river of history advances. Only actions that are grounded in reality R&D investment RMB billion 1.24
can guide us to our goals as we progress. Never wavering in our pursuit of excellence, we Year-on-year growth of R&D investment % 15.14
are pursuing high-quality development with rock-solid confidence, a willingness to seize every
Percentage of R&D investment to operating
opportunity, and unyielding persistence. We are advancing to a higher level of sustainable % 3.34
income
development in order to protect the environment and contribute to society. We will seize the
Governance Performance
opportunity presented by the low-carbon transition of the chemical industry and accelerate the
General Meeting of Shareholders session 5
rate of chemical innovation and change. Moreover, we will fulfill our social responsibility and
Meetings of the Board of Directors session 7
contribute to China’s goals of peaking carbon emissions before 2030 and achieving carbon
neutrality before 2060, thereby creating a better future for our employees, investors, and society. Meetings of the Board of Supervisors session 7
Special audits item 30
Social Performance
Coverage of employee training % 100
Total attendance to employee training trainee 159,099
Total duration of employee training hour 516,154
Percentage of occupational physical
% 100
examinations
Patents filed piece 107
Patents authorized piece 93
Year-on-year growth of patents filed % 50.70
Customer satisfaction % 100
Blood donations since 2012 donator 979
Cumulative amount of blood donated since 2012 ml 356,200
Environmental Performance
Total investment in environmental treatment RMB million 1,428.57
Time spent in environmental treatment hour 62,130
Attendance to environmental training trainee 31,255
Water saved through reuse of reclaimed water thousand metric tons 4,932.60
Wastewater discharge reduced thousand metric tons 6,996.00
Cumulative number of participants in emergency
person 6,153
drills
Environmental monitoring session 115
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