MSCI is among the world's most extensive and widely recognized ESG rating agencies, with its indexes used as investment benchmarks for about $15.6 trillion in managed assets. The MSCI ratings impact global investors' asset allocation decisions and serve as a key metric for measuring a company's ESG risk management capabilities, long-term investment value, and international competitiveness. In June 2017, MSCI announced the inclusion of China A-share in the MSCI Emerging Markets Index, and CYPC was among the first 222 A-share listed firms selected for this milestone. From 2018 to 2025, as a listed firm primarily engaged in large-scale clean hydropower, CYPC consistently integrated sustainable development concepts into its corporate strategy and daily operations. By advancing its ESG initiatives through systematic management, targeted practices, and transparent disclosure, the Company successfully drove its MSCI ESG rating up step by step from B to BB, BBB, and finally to A.

CYPC is committed to protecting green ecosystems. It operates the world's largest clean energy corridor, comprising six cascade hydropower plants, namely, Wudongde, Baihetan, Xiluodu, Xiangjiaba, Three Gorges, and Gezhouba HPPs. In 2025, it generated over 300 TWh of clean and green electricity, equivalent to reducing carbon dioxide emissions by 240 million tons. This injected strong momentum into the realization of the national goals of carbon dioxide emissions peaking and carbon neutrality. Besides, CYPC is deeply engaged in ecological preservation and environmental governance. It normalizes ecological scheduling trials and sediment flushing scheduling at reservoir tail. It also makes every effort to promote the restoration and improvement of the Yangtze River's aquatic ecosystem and protect biodiversity. Furthermore, focusing on climate risk response, it continuously enhances its water resource management, strengthens the fine management of carbon emissions, and steadily advances the development of zero-carbon and smart dam areas. This has integrated green and low-carbon transition with high-quality development in a coordinated manner.

CYPC strives to improve modern governance. The Company established a five-level ESG management structure, and issued the Working Rules for the Strategy and ESG Committee under the Board of Directors to bolster the Board's ESG oversight and decision-making. It also released specific ESG management measures and set up specialized working groups covering safety & environmental protection, operations & production, human capital, community management, and corporate management. Furthermore, it participated in drafting the Sustainability Reporting Guidelines for Chinese Hydropower Enterprises. These efforts further enhanced ESG indicator management and drove the development of its ESG management system. In addition, CYPC continuously optimized its corporate governance structure and its modern enterprise system with Chinese characteristics. It promoted the development of a business ethics audit and anti-bribery control system, introduced third-party assurance for its reports, and enhanced transparency of information disclosure. These efforts ensured authentic and traceable ESG, meeting global investor’s concerns with a more resilient, transparent governance framework.

Moving forward, guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, CYPC aims to forge ESG competitiveness commensurate with its goal of becoming a world-class clean energy listed company. Focusing on key issues such as climate risk management, biodiversity conservation, fine water resource management, and international exchange & cooperation, the Company will promote the continuous release of the green value of large-scale hydropower operations. Moreover, by innovating pathways for sustainable development practices, it will make greater contributions to the building of a Beautiful China and the global green, low-carbon energy transition.