Recently, Sino-Securities Index Information Service (Shanghai) Co., Ltd. released its latest 2025 ESG rating results. China Yangtze Power Co., Ltd. ("CYPC"), recognized for its outstanding performance in Environmental, Social, and Governance (ESG) areas, saw its rating upgraded from "A" to "AA", securing the top spot within the domestic power utility industry.

Sino-Securities Index Information Service (Shanghai) Co., Ltd. holds index compilation and data dissemination authorizations from the Shanghai, Shenzhen, and Hong Kong Stock Exchanges. It is also the exclusive ESG data provider for the SSE Service Platform. Besides, it has obtained independent verification for compliance with the International Organization of Securities Commissions (IOSCO) principles, with its ratings widely adopted by financial institutions both domestically and internationally. With CYPC being the sole "AA"-rated company in its sector by the Chinese data provider this time, this accolade highlights the strong endorsement by authoritative institutions for its ESG practices, solidifying capital market confidence in its sustainable development prospects.

In recent years, CYPC has progressively integrated ESG principles into the core of its corporate strategy. By focusing on key ESG issues such as climate response, resource utilization, community management, ecological protection, and governance structure, the company has established an ESG management system covering its entire value chain, driving high-quality and sustainable development.

With regard to environmental management, CYPC actively addresses climate change risks through integrated operation of cascade reservoirs in the river basin, enhanced forecasting of water and rainfall regimes in the Yangtze River basin, and science-based analysis of precipitation trends and weather patterns, maximizing the comprehensive benefits of water resources. In 2024, its six cascade hydropower stations collectively generated 295.904 TWh of clean energy, equivalent to reducing carbon dioxide emissions by 240 million tons, providing strong support for the nation's "dual carbon" goals. The resource utilization efficiency of CYPC continued to improve, with its freshwater consumption intensity decreasing by 27% year-on-year, waste recycling rate reaching 93.73%, and multiple indicators such as carbon dioxide emission intensity and comprehensive energy consumption intensity all ranking at the top of the industry.

In the realm of social responsibility, CYPC implemented 62 aid projects in 2024. It established demonstration sites for rural revitalization, such as the Smart Niuzhaping Village in Yichang and the Bona Villa in Wushan County, while promoting infrastructure development and ecological environment remediation in reservoir areas. It also supported the large-scale propagation and release of rare and endemic fish species, hatching approximately 1.92 million fry and releasing over 900,000 individuals. Through ecological operation trials like selective water withdrawal, base-load power generation, and artificial flood peaks, it facilitated record-high total egg production of approximately 68.7 billion and 60.9 billion for drift-spawning fish species in the Yidu and Shashi river sections, both setting new historical highs.

In terms of corporate governance, CYPC has set up a five-tier ESG management structure, enabling the Board of Directors to comprehensively coordinate and lead ESG efforts, thus offering solid organizational support for sustainable development. Efforts are ongoing to refine the Board's governance structure, ensuring full protection of shareholder interests. Internal auditing and commercial ethics risk management have been reinforced, along with the development of a green supply chain guarantee system. By publishing the Guidelines on Sustainability Report of Chinese Enterprises (CASS-ESG 6.0) for the Hydropower Industry and undertaking external independent verification of ESG reports, CYPC has markedly improved the transparency and public trustworthiness of its disclosures.

Looking ahead, CYPC will continue to be guided by XI Jinping's Thought on the Construction of Ecological Civilization, deeply embracing the Two Mountains Theory. With a systematic ESG management strategy and precise pathways for sustainable development, the company will actively address global climate change, maximize the comprehensive benefits of water resources in the Yangtze River basin, and promote the coordinated development of clean energy deployment and regional ecological protection, contributing its strength to building a beautiful China where humans and nature thrive in harmony.