China Tian Lun Gas : Environmental, Social and Governance Report 2020

2020 was an extraordinary and extremely challenging year. The sudden hit of Covid-19 has posed great challenges to economic development and social activities. By identifying changes with science, pursuing progress in transformation, and seeking opportunities from the crisis, Tian Lun Gas managed to promote work and production resumption, production and management, and other work while advancing epidemic control. Thanks to unremitting efforts in fully exploring the potential value of the current gas market, the Group has secured stable growth in overall performance.

The Group accommodates social and environmental sustainability while pursuing economic growth. Adhering to the operation principle of sustainable development as the core, Tian Lun Gas listens to different voices, communicates and cooperates proactively with stakeholders, and establishes effective governance and administrative mechanisms for sustainable development. We continuously promote the practical integration of sustainable development into our operations and management to create stable environmental, social and corporate value in the long term.

In the context of China's goal of achieving carbon neutrality by 2060, the Group actively responds to the call of national energy development strategies and provides clean energy optimization and replacement solutions for high-energy consumption and high-polluting enterprises by leveraging our rich experience in professional gas construction and operation as well as strong gas source guarantee capabilities. The Group continues to create natural gas access in rural areas with the exemption of gas connection fees, supporting rural residents to replace coal with clean energy and assisting gas construction in villages. These efforts have effectively promoted green development and lifestyle in rural areas, thus facilitating the clean transformation of regional energy structure. In 2020, the Group operated 67 urban gas projects in 16 provinces. The total volume of its natural gas sales and long-haul pipeline gas transmission reached 2.28 billion m3.

Adhering to the customer-focused philosophy with services as a guarantee, the Group has always been increasing customer loyalty with a high-quality customer service experience to achieve a win- win situation where the brand reputation of Tian Lun Gas can be enhanced with customer recognition obtained. The Group continues to carry out grid operations in pilot areas and improves

the professional skills of front-line employees through a series of evaluations, trainings and inspections. The grid management promotion plan had been completed in 2020, which will further fulfill the precise requirements of customer service. The Group continues to deepen the delicacy management of customers, establish a customer tracking mechanism for key users, update the customer information file with focuses on resource integration. We strive to optimize the customer service systems and improve the overall efficiency and service quality.

With the people-oriented management philosophy, the Group innovates incentive mechanisms. Through the formulation of incentive plans on gas penetration in rural areas and value-added business, as well as the establishment of project contracting mechanism for internal partners in subsidiaries and mid-to-long-term business partnership system, the employees' sense of participation and belonging have been comprehensively heightened with their enthusiasm summoned up. At the same time, the Group continues to improve the talent training system which provides targeted and diversified online and offline training programs for talents in different positions, ranks and development stages. Management trainings for college students and reserve cadres have been actively carried out to achieve the mutual growth of employees and the Group.

2021 kicks off the fourteenth "five-year plan" and all-around rural vitalization. During the fourteenth "five-year plan" period, building a modern rural energy system with green, low-carbon and clean elements is an important step towards deepening supply- side reform in the countryside, accelerating agricultural and rural modernization, as well as improving living conditions. We will seize critical development opportunities and adhere to the strategy of "gas penetration in urban and rural areas". We will strengthen our gas supply capacity through strengthening cooperation and optimizing gas sources and improve the efficiency of operations and services in the spirit of customer-centered and service- oriented. We will also improve safety operation standards and ESG performance to achieve win-win cooperation.

Last but not least, on behalf of the board, I would like to extend my sincere thanks to all shareholders, customers and partners for their continued support and all employees of the Group for their hard work!