SUSTAINABILITY

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Governance

Capchem strictly complies with laws and regulations such as the Work Safety Law of the People's Republic of China, the Law of the People's Republic of China on Prevention and Control of Occupational Diseases, and has established a five tier management structure at the Group level, consisting of the Board of Directors - Executive Committee - EHS Management Committee - EHS Center - Subsidiaries, to provide robust organizational assurance for intrinsic safety throughout the entire process, value chain, and lifecycle of production and operations.

 

Strategy

Adhering to a people-centered development philosophy, Capchem has established an occupational health and safety policy of "Compliance with laws and regulations, life above all; Safety first, with prevention as the focus; People-oriented, striving for green excellence; Scientific management for continuous improvement." The Company has built an integrated, comprehensive, and multi-level occupational health and safety management system at the Group level, exercising rigorous control over all value-chain activities involved in its operations—including production, storage, use, operation, transportation, and waste treatment—to ensure safe and orderly business operations.

 

 

Impact, Risk and Opportunity Management 

Capchem firmly establishes a risk-based safety management philosophy, integrating elements of the Process Safety Management (PSM) system and embedding requirements for work safety standardization, graded safety risk control, and hazard identification and remediation. Using professional tools and methods such as Hazard and Operability Study (HAZOP) and Job Safety Analysis (JSA), the Company conducts regular safety risk assessments to systematically identify risks and hazards related to materials, processes, equipment, and personnel operations.

 

Capchem continues to advance the Business Continuity Management（BCM) system, dynamically identifying risks related to materials, processes, utilities, and extreme weather, and developing contingency plans for water, electricity, steam, wind outages, production control system failures, and typhoon scenarios to fully ensure the continuous operation of production.

 

Capchem has established a full-lifecycle risk management system covering R&D, project construction, pilot production, and production operations. The system starts at the R&D stage, with comprehensive EHS risk assessments conducted across multiple dimensions, including safety, occupational health, environmental protection, and energy consumption. Drawing on experience from previous pilot production, Capchem proactively integrates EHS control checkpoints into the design and construction stages, enabling early risk prevention. Building on this foundation, the Company has further consolidated a standardized EHS management system spanning R&D, new project initiation, and pilot production, significantly enhancing the systematic nature and effectiveness of overall EHS risk management.

 

Capchem has established a comprehensive safety performance monitoring and assessment system, revising and publishing the EHS Reward, Punishment and Performance Assessment Management System.

 

Capchem emphasizes technology empowerment to strengthen safety digitalization. In 2025, the Company invested approximately RMB 1.5 million to enhance safety digitalization across its production bases, including modules for graded risk control, hazard identification and remediation, special operations management, and personnel tracking, with the addition of a module for critical pump condition monitoring. By leveraging digital technologies, the Company improves the timeliness, accuracy, and efficiency of risk monitoring and early warning, graded risk control, hazard identification and remediation, and employee safety awareness and skills, thereby ensuring operational safety.

 

Capchem earnestly implements the Law of the People's Republic of China on Prevention and Control of Occupational Diseases and the ISO 45001 Occupational Health and Safety Management System guidelines, establishing a comprehensive occupational health and safety management system and processes.

 

Capchem strictly implements the "Three Simultaneities" system for construction project safety (i.e., safety facilities are designed, constructed, and commissioned simultaneously with the main project). Targeted control measures are carried out in light of the characteristics of temporariness, cross operation, and high personnel mobility during the construction phase.

 

In 2025, Capchem further promoted safety culture development, focusing on the themes of risk control, responsibility implementation, capability enhancement, and intrinsic safety. Special initiatives were carried out to strengthen organizational structure, enhance safety leadership, and reinforce employees' safety execution. These activities help employees fully understand and embrace the Company's safety philosophy, put safety commitments into practice in their respective roles, and foster a strong safety culture.

 

Indicators and Targets

Capchem remains committed to deepening occupational health and safety management. Through multi-dimensional, comprehensive measures and strategies, the Company strives to achieve its annual occupational health and safety objectives, safeguarding stable operations and employee well-being.

 

 

Highlights in 2025

  • Invested a total of RMB 59.69 million in occupational health and safety management  in 2025.
  • 12 operating production bases obtained ISO 45001 certification, representing a coverage rate of 80%.
  • No work safety incidents of moderate or higher severity occurred, and no suspected or confirmed occupational disease cases were reported.
  • Conducted 714 safety drills and 956 safety training sessions, achieving 100% coverage of production employees, with a total of 115,727 training hours.