Law-based Corporate Governance

A legal framework is a country’ssuperstructure and sets out a set of rules and legal steps which allow forjudgments and rulings to be made in legal cases. To this end, a legal frameworkis essential to long-term peace and stability. Enterprises, which represent anation and perform social responsibility, must be in accordance with laws andregulations, particularly if they are to achieve sustainable development.Datang Power, as an important constructor in this system, adheres to theprinciple of making substantial contributions and setting good example to andfor the nation. We abide by the principles of trust and lawful operations andregularly implement initiatives and aim at strengthening our legal culture inorder to guarantee the healthy development of the enterprise.

Safe Production

Safe production is our top priority atDatang Power and a prerequisite to our successful business operations. We arecommitted to strengthening all aspects of our safety culture and regularlyconduct safety examinations for personnel, equipment and management. In 2016,59 power generation enterprises affiliated with Datang Power reached ourinternal standard for safe production, 39 achieving the Class I standard.  

Improving our safety management system.To ensure a goodcontrol environment and contribute to achieving our company goals, we regularlymake revisions and improvements to our International's Safety Regulations, ourMeasures for Safe Production Responsibility Management, our Safe ProductionSupervision Regulations, our Regulations for Rewards and Punishments of SafeProduction, and our Safe Management Guidelines. We have established a"4+1" Safety Management Institutional System to guide and improve ourmanagement of safe production. We highlight, implement and regularly examinehow well we perform in terms of leadership, oversight, and on-site managementto improve our overall level of production management.

We use a universal approach when building awork team, and see our capacity building activities as an essential part of oursafety production process. Our safety team is responsible for ensuring we meetall relevant safety standards. We adhere to our Guidance to the StandardizationConstruction of the Datang International Team when constructing new teams andimplement our 120-point working standards. Our "security for whom"initiative publicizes and educates employees on the importance of safetysecurity. We also run an anti-accident safety warning education program,compiling and learning from previous accidents during power production. We havecodified Preventive Measures to raise awareness among our employees on theimportance of safety and safety concepts, and have built an "ironenterprise" that has safe production processes. In 2016, our Team LeaderSafety Management Training Courses consisted of six phases and trained 847 teamleaders.

We regularly conduct comprehensive safety examinationsand upgrade our safe production process to maintain a safe work environment forour employees. We perform safety inspections in facilities that have prominent safetyissues, hidden on-site hangers, or weak safety records to eliminate hiddenhazards that could occur during a natural disaster. We then formulateimprovement measures that target the problems. In 2016, Datang Power issued 43Notice of Safe Production Supervision certifications and supervised therectification of 994 problems throughout the organization. In addition, weregularly implement safety control and management projects, and conduct on-sitevisits to strengthen our internal controls and management and to construct onlyfirst class projects.

Strength eningour emergency management plan. Our emergency managementplan covers all levels of the company and contains newly improved contingencyprotocols. We now have rescue materials for specific scenarios and organizedrills against emergencies such as firefights, generator fires, and floods. Byregularly testing the adaptability of our contingency plans and performingemergency rescue training tests we aim at strengthening our ability to respondeffectively to emergencies.

Improving the condition of our work equipment. Our approachto managing equipment stresses the importance of maintenance to prevent defectsfrom occurring. We examine and repair equipment on a regular basis and perform targetedtechnology updates to ensure that our equipment is always functioningcorrectly. For example, Tianjin Panshan Power Generation implements its"Examination, Rectification and Tracking" procedures to eliminateexisting problems in its facilities. The company classifies problems that maynegatively influence the safety of the enterprise and arranges experts toanalyze potential issues and draw up corrective plans. In 2016, the company wonthe honorary National "Ankang Cup" Competition Excellent Unit, andthe "National Safety Culture Construction Demonstrative Enterprise"for being a good example of safety and reliability.

Law-based Framework

Formulating rules and regulations. At Datang Power, we adhereto law-based corporate governance and follow all applicable national rules andregulations for Hong Kong listed companies. We abide by all laws andregulations including the Law on Safe Production, the Law on EnvironmentalProtection, and Law on Prevention of Occupational Diseases. The DatangInternational Power Generation Co., Ltd. Legal Compliance Implementation Planensures that all decisions are in accordance with the law for both our internaland external operations. In 2016, we won numerous awards including the title ofTop 100 Most Trustworthy Listed Companies in China.

Publicity and education. Promoting law-based governance is animportant step to achieving legal compliance. To this end, we have complied our7th Five-Year Plan on Legal Publicity and Education of Datang InternationalPower Generation Co., Ltd (2016-2020) to promote the dissemination of laws andorganize activities that promote a law-based culture and facilitate respectsfor the law. On 4 December 2016—National Constitution Day—we organized a numberof national legal publicity activities.

Corporate Integrity

To ensure transparency in the workplace, westrictly implement elements from Central People Government’s Eight-pointRegulation, and conduct in-depth studies that are guided by our "TwoStudies and One Action" plan. We rectify existing problems in a timelymanner and always seek to improve how we supervise and discipline staff so thatwe can function as honestly and transparently as the Party. In 2016, we signed2,324 letters of intent and organized more than 600 activities foranti-corruption, attracting more than 47,000 participants.

Standardizing our management of suppliers’and business ethics. To prevent the exchange of gifts from occurring duringfestivals, Hebei Zhangjiakou Cogeneration established a "gift-givingetiquette" for its suppliers. The company asked supplier employees whetherthey were asked by Hebei staff for gifts or cash rewards. In reiterating waysof reporting such behavior among suppliers as well as the Party policies ofestablishing an honest and clean government, suppliers are warned againstcarrying out such improper acts. This action forms deterrent effect amongsuppliers and effectively reduces gift exchanges.

In reiterating ways of reporting suchbehavior among suppliers as well as the Party policies of establishing anhonest and clean government, suppliers are warned against carrying out suchimproper acts. This action forms deterrent effect among suppliers andeffectively reduces gift exchanges.