Significance

Climate change is a key factor affecting sustainable development and human well-being. As a result, it becomes the global issue pulling collaborations across the world to lower GHG emissions and alleviate its impacts. Many countries have jointly set the common goals to lessen GHG emissions so as to control a rise of the earth’s average temperature to well below two degrees Celsius. Consequently, the policies and applicable laws have been set up in many countries to promote GHG emission reductions and efficient energy consumption, such as a system permitting to trade GHGs or the Emission Trading Scheme (ETS), limitation of fuel consumption for energy production, a promotion of more renewable energy investments, carbon tax, etc. As such, these are both challenges and important opportunities for BPP to grow in the energy business.

Major activities causing the GHG emissions conducted by BPP are summarized as following:

Management Approach

Since BPP operates a power and energy generation business, it directly consumes fuels for energy production. As a result, BPP mainly focuses on decreasing direct GHG emissions (Scope 1) released
from various fuel consumptions. BPP’s direct GHG emissions are accountable for 99% of its total GHG emissions since its operations are the upstream business, generating power and other energy supplied for industrial and residential consumptions.

BPP sees the opportunities and capabilities to reduce GHGs through improving energy utilization efficiency, lessening losses in the production process, and conducting a study on alternative fuels to achieve its GHG reduction target. In alignment with the Greener & Smarter strategy, BPP is also looking for chances to invest in renewable energy & technology businesses and smart power utilization. BPP closely keeps an eye on policy changes and assesses risks related to climate change in preparation for adapting itself to a transition of structures, policies and applicable laws in various countries. For example, employing a business continuity management system, assessing risks and opportunities related to changes in alignment with the Task Force on Climate-Related Financial Disclosures (TCFD), including defining the carbon pricing as part of its investment consideration in various projects.

BPP has established working groups to supervise climate change operations as following:

Performance
• GHG emissions intensity (Scope 1 & 2) was 0.469 tonnes CO₂e/MWh, down 30.6% when compared with the target set, and 25.7% lower than the year 2012 baseline.
  • Combined heat and power plant 0.511 tonnes CO₂e/MWh
  • Gas-fired power plant 0.424 tonnes CO₂e/MWh

  

• An equity power generation capacity of 395 MWe from renewable energy generation capacity, representing 49.4% progress of the year 2025 target.

 
Key Activities and Projects

1. GHG Emission Reduction Project at Zhengding CHP Plant

The People’s Republic of China has gradually announced laws related to energy consumption control, GHG emissions and environmental quality control over the years.  In responding to the nationally determined contributions (NDCs) policies to reduce GHG emissions announced in the meeting of states parties to the United Nations Framework Convention on Climate Change, the local clean energy projects are continuously planned and promoted.



Zhengding CHP Plant has continuously implemented projects to increase its energy efficiency and to reduce the GHG emissions in response to policy and legislative changes related to energy consumptions and climate change including adapting itself to changes in energy consumption patterns.   Throughout the past three years, the plant has undertaken projects to reduce GHG emissions as following:

• A project to control exhaust gases emitted from stacks and reduce heat losses: A study on engineering design was conducted by using a heat pump for heat exchanger instead of constructing a steam distiller. The heat pump can separate steam mixed with exhaust gases and control the generation of white smoke. It can also recycle heats from exhaust gases. The investment budget for construction is about CNY 35.5 million, while the operating cost is about CNY 2.4 million per year. Benefits contributed from this project include:
  • About 14 MW of heats are recycled into the system, covering an additional heat supply area of ​​about 340,000 square meters, or about 5,000 households, equivalent to CNY 10.56 per year of revenue.
  • Able to recycle all water resulted from condensation, reducing groundwater consumption by 130,000 tonens/year
  • Reducing sulfur dioxides and particular matters emissions by approximately 30%.
  • Decreasing energy consumption, leading to a reduction of GHG emissions by approximately 41,000 tonnes/year
  • Selected as one of the top 100 Eco-environmental innovation projects in 2020.
• The Intelligent monitoring and control system for heat exchangers station: About CNY 1 million was invested in installing the sensors such as temperatures, pressures and flow rates, including developing a remote monitoring and control system. This makes it possible to quickly monitor and control operations.   As a result, it can reduce electricity consumption by about 18.4% or decrease the electricity consumption intensity by 0.36 KWh/square meter (from 1.96 KWh/square meter to 1.6 KWh/square meter). This represents a reduction in GHG emissions of approximately 0.34 kilograms of CO₂e/square meter, valued to approximately CNY 864,000 per year of annual energy cost savings.
• Conducting a feasibility study project to invest in carbon captures used in the industrial sector: The study was completed in 2021 and is in the process of studying on constructions. It is expected to capture about 100,000 tonnes of CO₂, or about 10% of the total GHG emissions from Zhengding CHP Plant. CO₂ can be sold to industrial factories in the vicinity where CO₂ is used in the production process.
• Conducting a feasibility study on investment in solar rooftop installation: In response to the government’s policy that has been promoted for more local clean energy projects, Zhengding CHP Plant has been selected to be the operator of the solar rooftop installation project. It aims to increase the installation of solar panels on the roofs of governmental buildings, factories and communities to a total of 167 MW by 2023. It is expected to generate power of approximately 200,000 MW per year and reduce GHG emissions by 119,000 tonnes of CO₂e/year.

2. Increasing the Potential for Adaptation to Risks relating to Climate Change

Operation Risk Management

BPP has adopted the Business Continuity Management System (BCMS) in preparation for events interrupting business operations such as natural disasters, decease epidemics. Consequently, the company will be able to deliver products and services to customers and various stakeholders immediately.

Changes in policies and regulations regarding energy and GHG emissions

BPP has a responsible unit to monitor and anticipate changes in regulations in all areas open for operations at the local level and the central government in order to be able to adapt itself to the changing environmental quality standards that are more extreme. At the same time, it is looking for opportunities to invest in the renewable energy business receiving more supports from the government.

3. Carbon Pricing

In the past year, the Company used the internal carbon price which would determine the GHG cost in various areas used as part of the cost to analyze the investment value and possibility of new projects in the future. The Company focused on low carbon emission projects and factors to reduce the Company’s GHG emissions reduction in order to achieve the goal set and to be prepared for adaption to the possibility of legal changes and enforcement to reduce GHG emissions in the near future.




4. Other Indirect GHG Emissions (Scope 3)

The Company conducted a preliminary assessment of indirect GHG emissions (Scope 3) which involved operational activities as follows:




5. Assessments of Risks, Impacts, and Opportunities associated with Climate Change

BPP has assessed risks, impacts, and opportunities arising from climate change during the years 2022 – 2040, with a scope covering investments of all business units with significant investment proportion, or over 30%.





 

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Climate Change Policy