GHG Emissions
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:
Direct GHG Emissions (Scope 1) |
Indirect GHG Emissions (Scope 2) |
- Using natural gas, coal and waste gas from industrial factories, as well as activated carbons _ waste released from manufactories, used as fuels to generate power, steam, and heat.
- Using diesels for igniting the boiler’s combustions, heavy equipment, substitute power generators, internal transport vehicles, etc.
- Consuming minimum gasoline for vehicles.
- Making use of calcium carbonate (CaCO3) for the air quality control system.
- Using SF6 gases.
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- A purchase of electricity from external sources.
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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
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.
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.
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.

The Company has assessed other indirect greenhouse gas emissions (Scope 3) throughout the supply chain using criteria based on greenhouse gas accounting standards of the World Resource Institute (WRI) to identify the relevance of 15 activity categories. In 2023, the Company had total other indirect greenhouse gas emissions (Scope 3) of 16,737,659 tons CO2e from the following activities:
Category |
Relevance to BPP |
GHG Emissions (Tons CO2e) |
Calculation |
Category 1 Purchased goods and services |
Related to the upstream emissions of purchased raw materials, chemical substances, construction materials, equipment, spare parts used in power plants, and procurement activities.
|
2,447,594 |
- Spend-based methodology
- Cost of capital goods and services purchased and contracted by the organization
- Emission factors from Environmentally Extended Input-Output (EEIO)
- Acquisition of Temple II power plant was not included because the emissions of power plant considered as Scope 1 and 2.
|
Category 2 Capital goods |
Related to the upstream emissions of capital goods purchased such as computers in offices. |
There is no calculation, and it is negligible when compared to other activities. |
|
Category 3 Fuel- and energy related activities |
Related to the upstream emissions of fuel and energy purchased such as coal, oil and electricity. |
1,009,430 |
- Average-data methodology
- Amount of fuel and electricity purchased for production
- Emission factors from UK Government GHG Conversion Factors for Company Reporting and IEA Life Cycle Upstream Emission Factors 2023 (Pilot Edition)
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Category 4 Upstream transportation and distribution |
Related to the transportation of raw materials and machinery in power plants by suppliers or contractors. |
There is no calculation because natural gas is delivered via pipelines and other fuels such as coal and oil come from various sources of suppliers. It is negligible when compared to other activities. |
– |
Category 5 Waste generated in operations |
Related to waste management from production |
There is no calculation, and it is negligible when compared to other activities. |
– |
Category 6 Business travel |
Related to business travel of employees by plane, train and car. |
There is no calculation, and it is negligible when compared to other activities. |
– |
Category 7 Employee commuting |
Related to commute of employees from their residences to the offices by their own cars or other public transportation |
There is no calculation, and it is negligible when compared to other activities. |
– |
Category 8 Upstream leased assets |
The Company has no leased assets related to production, but it only leases office spaces. |
There is no calculation, and it is negligible when compared to other activities. |
– |
Category 9 Downstream transportation and distribution |
Not relevant because the Company does not own the power transmission lines, steam pipes, or hot and cold water pipes. |
– |
– |
Category 10 Processing of sold products |
Not relevant because our products are in the form of energy such as electricity, steam and hot water, without being processed. |
– |
– |
Category 11 Use of sold products |
As our products are in the form of energy such as electricity, steam and hot water, so the use of sold of energy are considered as indirect GHG emissions (Scope 2) of the customers. |
– |
– |
Category 12 End of life treatment of sold products |
Not relevant because our products are in the form of energy such as electricity, steam and hot water, so there is no process for disposal. |
– |
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Category 13 Downstream leased assets |
Not relevant because the Company does not operate an asset rental business and does not have any assets available for rent to others. |
– |
– |
Category 14 Franchises |
Not relevant because the Company does not operate a franchise business. |
– |
– |
Category 15 Investments |
Related to the equity investment in joint-venture companies, including BLCP, HPC, SLG, IGCC Nakoso and BanpuNEXT. |
13,280,636 |
- Investment-specific methodology
- GHG Emissions (Scope 1 and 2) of joint-venture companies and percentage of shares by BPP.
- IGCC Nakaso was not included because the power plant was under development to improve performance.
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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
