Contents

Ensuring Safety by
Identifying and Addressing
01 Chairman’s Statement 06 Hidden Hazard
2 6.1 Consolidating Intrinsic Safety System 66
6.2 Strengthening Safety Governance 69

02
6.3 Implementing Safety Measures 71
About Us 6.4 Safeguarding Occupational Health 75
6.5 Raising Employees’ Safety Awareness 76
2.1 Company Profile 6 6.6 Strengthening Infrastructure Security 77
2.2 Corporate Governance 7
2.3 Development Strategy 7
2.4 Company Philosophy 8
2.5 ESG Responsibility Management 9 Promoting Synergy
between Talents and
07
2.6 Table of Key Performance Indicators 12
2.7 Communication with Stakeholder and Excellent Enterprise
Identification of Material Issues 17
2.7.1 Information about and Communication 7.1 Protecting Employees’ Rights and Interests 80
with Stakeholder 17 7.2 Promoting Employee Development 81
2.7.2 Process of Identification of Material Issues 18 7.3 Caring Employee Health 82

Advancing the Reform of Realizing Mutual Benefits

Electric Power System to 08 and Win-win Results
03 Promote Development
8.1 Making Concerted Efforts to Seek
22 Common Development 86
8.2 Providing Quality Service 89
8.3 Creating a Better Society 90
Performing Duties by
04 Assiduous Action Competing in Overseas
Market for Further
09
4.1 Improving Capability of Guaranteeing Energy Supply 28
4.2 Sticking to Honest and Law-abiding Practices Development
for Compliant Operation 32 92
4.2.1 Governance by Law 32
4.2.2 Anti-corruption 34
4.2.3 Protection of Intellectual Property Rights 38
Forging Ahead to
10 the Future
Transformation
Development Driven by 98

05 Innovation
5.1 Advancing the Energy Revolution 42 11 Appendix
5.2 Pursuing and Accelerating Innovation 44
5.3 Actively Practicing Low-Carbon Operation 46 11.1 About this Report 101
5.3.1 Overall Planning 46 11.2 Statement of the Board of Directors 102
5.3.2 Energy Consumption Management 46 11.3 Contents Index of the Environmental, Social
5.3.3 Water Resources Management 51 and Governance (ESG) Reporting Guide by
5.3.4 Emissions Management 52 the Hong Kong Stock Exchange 103
5.3.5 Other Environmental Impacts 61 11.4 Contents Index of GRI Sustainability
Reporting Standards (GRI Standards) of
Global Reporting Initiative 110
11.5 Readers’ Feedback 119
 Huaneng Power International, Inc.
2
CHAIRMAN'S STATEMENT

CHAIRMAN’S STATEMENT

In 2022, Huaneng International concentrated on the mission of the new journey in the new era.
We responded actively to the impact of the power supply shortage. We took the initiative, strived
to overcome difficulties, made efforts to promote the high-quality development of the Company,
and achieved new results in all aspects of our work. Our production remained safe and stable, the
pace of transformation and development kept accelerating, the quality and efficiency improvement
continued to elevate. Our scientific and technological innovation was quick and steady, the outcomes
of our oversea projects were outstanding, and our management strategy was continuously refined.

Focus on power supply assurance, take on the responsibility. In 2022, the Company
comprehensively committed to the deployment by the State Council Safety Committee, coordinated
both development and safety, enhanced the red line awareness and bottom-line thinking, built
a "trinity" for infrastructure safety responsibility system, conducted a large-scale investigation
and rectification over production safety, and provided energy backup during several events of
significance, such as the 20th Party Congress and the Olympic and Paralympic Winter Games.

Focus on green development, accelerate the pace of transition. In 2022, the Company
kept the new strategy of energy security as the guide and the work around “double carbon” as
the traction. We aimed to build an innovative power supply system with new energies as the major
power source. The number of approvals (filings) on new energy project has reached a record
high. Breakthroughs were made in the development of offshore wind power generation. Ultra-low
emission was realized for all coal-fired generator units. The Company is still industry-leading in major
energy consumption index and pollutant emission performance.

Focus on quality and efficiency improvement, maintain the steady operation. In 2022, the
Company implemented the State Council’s package of measures for economic stabilization. The
Company’s operation remained stable with potential risks under observation and control. Compared
with last year, direct income from operation increased, and the loss in the coal and power segment
decreased. The process of carbon quota trading was smooth and sound. The restriction on capital
costs and expenses was strict and stringent. Our financial management was proved to be effective,
and we kept working on dealing with the inactive branches of the Company.
 Environmental, social and governance report 2022 3

Focus on technological innovation, enhance the core competency. In 2022, the Company prioritized serving
the national strategic requirements and vigorously pushed the research and development of key core technology.
Breakthroughs were made in several key projects. The benefits of science and technology management became
visible. The process of digitalization and intellectualization in the Company kept accelerating. The ability of technological
innovation was evidently vitalized.

Focus on global development, remain open and cooperative. In 2022, the Company followed globalized
development strategy and actively participated in the establishment of “the Belt and Road.” The “Four Breakthroughs”
in Tuas Power’s operation performance, shareholders’ dividends, independent financing, and project development were
remarkable. The level of management of Sahiwal Coal-fired Power Plant project was effectively improved. We were
continuously working on the optimization of our international management system and mechanism. The name of state-
owned enterprises with high-quality development resounded even outside the country.

Time never waits, so we should seize the day. Huaneng International shall never stray from the path of green and low-
carbon development while moving forward. We constantly promote the “three major revolutions” of quality, efficiency,
and motivation, and strive resolutely to win the “three major battles” of quality and efficiency improvement, industrial
transition and development, and risk management and control. We attempt to break the new ground for the high-quality
development of the Company, accelerate the process of shaping a top tier listed international power generation company,
and make more contribution to the high-quality development of China’s power generation and energy industry.

Zhao Keyu
Cha irm an
Hua ne ng Pow e r I nt e r na t iona l, Inc.
 Huaneng Power International, Inc.
4
ABOUT US
 Environmental, social and governance report 2022 5

02 ABOUT US
 Huaneng Power International, Inc.
6
ABOUT US

About Us
2.1 Company Profile
Huaneng Power International, Inc. (“Huaneng International”, “the Company” or “we”) was incorporated on June 30, 1994.
The core business of the Company is, by making use of modern technology and equipment and also financial resources
available domestically and internationally, to develop, construct, operate and manage power plants throughout China. The
Company is one of the largest listed power generation companies in China, and is the first power generation company in
China to list in New York, Hong Kong and Shanghai.

Huaneng International is committed to be a world-class listed power generation company, always adhere to providing
sufficient, reliable, and eco-friendly energy to the community, and insists on innovations in technologies, structure, and
management. On aspects regarding the advancement in power technologies and construction and management of
power plants, the Company has been the pioneer and has created various milestones within the domestic power industry,
which facilitated the great leap development of the power business and technological advancement of the power station
equipment manufacturing industry in China, and also significantly contributed to the improvement of technical and
management standards of the domestic power generation enterprises.

Throughout the years, with dedicated efforts, the Company has expanded successively with steady growth in competitive
strengths. The success of the Company is attributable to its various advantages, including advantages in scale and
equipment, advantages in positive transformation to low carbon, clean energy, advantages in scientific and technological
innovation and environmental protection, advantages in geographic layout of power plants, sound corporate governance
structure, advantages in market reputation, extensive experience in the capital markets, advantages in overseas
development, staff with high caliber and professional management as well as strong support from major shareholders.

As at December 31, 2022, the Company had controlled installed capacity of 127,228 MW, and the proportion of the
installed capacity of low-carbon clean energy installation reached 26.07%. The Company’s domestic power plants
are located in 26 provinces, autonomous regions and municipalities. The Company wholly owns a power company in
Singapore and invests in a power company in Pakistan.

As at 31 December 2022,
Controlled Installed
Capacity

127,228 MW
Installed Capacity of Low-carbon
Clean Energy Installation Reached

26.07 %
 Environmental, social and governance report 2022 7

In 2022, the Company won the titles of the “Most Valuable Listed Company with High Quality Development” and the “Most
Valuable Listed Company for Investment” in the selection event of the 12th China Securities Golden Bauhinia Awards, the
“Outstanding Board of Directors” in the 17th Golden Roundtable Award of the Board of Directors of Listed Companies
in China, the 5A Rating of “Performance Assessment of the Secretary of the Board of Listed Companies in 2022” and
the “Best Practice of the Office of the Board of Listed Companies in 2022” awarded by the China Association for Public
Companies, the “A” grade rating for the annual information disclosure granted by the Shanghai Stock Exchange. The
Company was successfully selected into the “List of ESG Best Practice Cases of A-share Listed Companies in 2022”
issued by China Association for Public Companies, and was invited to share experiences at the ESG Training Conference
of Directors and Supervisors of Listed Companies held by the Beijing Securities Regulatory Bureau. The achievement of
various honors is the full affirmation of the capital market for the Company’s continuous high-quality development, the
continuous improvement of enterprise value and the prospect of low-carbon transformation since the “14th Five-Year
Plan”, which shows the Company’s good brand image. The external auditor has issued standard audit reports on the
Company’s internal control without reservation for seventeen consecutive years.

2.2 Corporate Governance

As a public company listed both domestically and internationally, the Company is subject to the regulations of the security
regulatory authorities of the different listing venues and the supervision of investors at large. Since its establishment,
the Company has been strictly complying with the laws and regulations of its listing place and continuously completing
and improving its modern governance system and capacity. The Company has established and improved a corporate
governance structure consisting of the shareholders’ general meeting, the Board, the Supervisory Committee, and
management team and built an operating mechanism with clear separation of powers and responsibilities, mutual
checks and balances and coordinated operations between proprietorship, decision-making power, supervisory power,
and management power, ensuring the effective enforcement of the decision making power of the shareholders' general
meeting and the Board, and the supervisory power of the Supervisory Committee, ensuring the efficient and compliant
management of the management team.

After years of exploration and practice, the Company has built up a normal and sound corporate governance system that
caters for the development of the Company. The Company regularly evaluated the applicability and effectiveness of the
management system and revised and improved it to achieve dynamic maintenance of the system.

2.3 Development Strategy

The Company fully implements the new development philosophy of “innovation, coordination, green, openness and
sharing,” adheres to the idea of systemization, follows the requirements of establishing a clean, low-carbon, safe and
efficient modern energy regime, adheres to the principle of treating quality and efficiency as the key focus, reform and
innovation as the driving force, institutional mechanism as the safeguard, and deepening the supply-side structural
reforms as the cardinal line, coordinates the energy safety and green development, comprehensively promotes the high-
quality developments, and aims to further develop the Company into a proper managed, leading in technology, energy
saving and environmental friendly, reasonable structured, excellently operated world-class listed power generation
company with outstanding corporate governance and market value.
 Huaneng Power International, Inc.
8
ABOUT US

The Company adheres to the new energy safety strategy of “Four Revolutions and One Cooperation,” promotes the
green and low-carbon transformation of energy with the aims of peak carbon emission and carbon neutrality, prioritizes
the quality and efficiency, insists on principles of “centralized and distributed construction of equal importance, and
independent construction of priority”. Making full use of the favorable conditions for centralized development of new
energy power in “Three- North Area,” coastal region, Southwest China region and certain areas in Central China region,
the Company further develops large-scale clean energy production base, with the idea of “Three-types and Three-izations”
namely “base-type, clean-type and complementary-type, together with intensification, digitalization and standardization”,
promotes the leap-forward development of new energy production, accelerates the optimization and upgrading of coal-
power structure, prioritizes the gas power and other clean energy power, and provides more competitive and finer
comprehensive energy services. The Company proactively adapts to the national structural reform of energy supply,
persists on accelerating digitalized transformation, actively develops strategic emerging industries, and carries out
transformation of diversified supply and energy service around core industries. Adhering to the new development pattern
of integrating domestic and international dual circulations, the Company will strengthen international cooperation with the
principles of clean being primary, profitability being first and prudence being essential, to reinforce the efficient operation
of oversea assets and to enhance the anti-risk ability and profitability. The Company aims to actively implement innovative
development strategy, focuses on high-quality development led by technological innovation mechanisms, continues to
serve the nationwide strategy, and adhere to the facing towards the Company’s major demands. The Company adheres
to digital & intelligent development, deepens and enhances the ability of independent innovation, implements scientific
and technological demonstration projects, and strengthens basic and forward-looking technical research. The Company
aims to vigorously implement the excellent operation strategy, adhere to the strategies of increasing profitability, improving
efficiency and creating value, reinforce its operational management, improve its management efficiency, optimize its asset
structure, comprehensively improve its modern operating and management level, vigorously promote the improvement of
quality and efficiency, improve corporate governance, enhance the Company’s brand value and conscientiously perform
its social responsibilities.

2.4 Company Philosophy

Becoming a “red” company that serves national strategies, ensures energy
security, and serves socialism with Chinese characteristics
Becoming a “green” company that carries out energy revolution, helps construct
Corporate an ecological civilization, and provides clean energy and power to meet the needs
Missions of the people for living beautiful lives
Becoming a “blue” company that participates in global energy stewardship,
serves the “Belt and Road” construction and positively contributes to building a
community of shared future for mankind

Upholding integrity, focusing on cooperation

Corporate
Innovating continuously, progressing actively
Core Values
Creating achievements, serving the Country

Corporate
Developing itself into an international leading power generation listed Company
Target
Provision of sufficient, reliable and environmental-friendly power for the society
Corporate
Strive for delivery of long-term, stable and increasing returns to shareholders
Responsibilities
Support the fully development for employees to establish self-achievements

Spirit of professional dedication – undergoing all conceivable hardships and using

every conceivable means
Corporate Spirit of pioneering – cutting paths through mountains and building bridges
Spirits across rivers
Spirit of progress – finding oneself gaps and pushing oneself ahead
Spirit of innovation – daring to lead and venturing to do the impossible

Corporate Being good at pioneering, focusing on efficiency, caring for reputation, thrifty in
Manner working
 Environmental, social and governance report 2022 9

2.5 ESG Responsibility Management

The Board of Directors assumes the overall responsibility for the Company’s tactics and reports on environmental, social
and governance (“ESG”) as well as for the assessment and determination of risks concerning ESG, and ensures the
establishment of a proper and effective system of risk management and internal supervision thereto. The Company’s
management provides information to the Board of Directors to assess the effectiveness of the system. The effective
ESG management of the Company’s Board of Directors and management drives the improvement of operation and
management of Huaneng International.

Situations Faced with the Company’s ESG

The Central Economic Work Conference emphasized that we should adhere to the general principle of seeking progress
while maintaining stability, comprehensively deepen reform and opening up, and vigorously boost market confidence in
2023. The Conference called for adhering to the principle of “priority on stabilization, and advancement from stabilization”,
continuing to implement a proactive fiscal policy and a stable monetary policy, intensifying macro-policy control,
coordinating with various policies, and forming a joint force to promote high-quality development. We should optimize
the implementation of industrial policies, pay close attention to the transformation and upgrading of traditional industries
and the cultivation and expansion of strategic emerging industries, and forge new industrial competitive advantages in the
process of implementing the objectives and tasks of carbon peak and carbon neutralization.

In terms of the power supply and demand, according to the analysis and forecast of the China Electricity Council, with
the considerations such as the domestic and international economic situation, temperature in winter and summer and
low base in 2022, it is estimated that the electricity consumption of the whole society will have a year-on-year increase of
approximately 6% in 2023; driven by the rapid development of new energy power generation, it is estimated that the total
installed power generation capacity and the installed power generation capacity of non-fossil energy will reach a new high
in 2023, and the newly installed power generation capacity nationwide is expected to reach about 250 million kilowatts.

In terms of the power market, the requirements of “the Notice on Further Deepening the Market-based Reform of the On-
grid Tariff for Coal-fired Power Generation” ( ) issued by the NDRC
in 2022 have been implemented. The electricity generated by coal-fired has been totally entered into trade within the
electricity grid market and the floating range of transaction prices of the electricity has been expanded to 20%. In 2023,
the state requires a high proportion of medium-and long-term electricity transactions to be signed, and the directories of
high-energy-consuming enterprises in various places will be launched one after another, and the coal price is expected to
decline, so the operating conditions of coal-fired power generation enterprises will be improved to some extent. However,
with the full spread of the spot market and the intensified competition in the electricity market, the market uncertainty will
further increase. Due to the increase in new energy parity production projects and the increase in market entry rate, the
electricity prices of wind power and photovoltaic are expected to decline.

In terms of the carbon market, the Ministry of Ecology and Environment of the People’s Republic of China issued the
Notice of Implementation of Relevant Work on Distribution of National Carbon Emission Rights Trading Quota for 2021
and 2022 ( ) on 15 March. According
to the quota distribution plan, the carbon emission benchmark value has been adjusted downward and the quota
distribution has been greatly tightened. With the gradual promotion of peak carbon emissions and carbon neutrality, the
cost of carbon emission performance will increase.
 Huaneng Power International, Inc.
10
ABOUT US

In terms of the coal market, policy-based supply guarantee will continue to exert efforts to promote the release of
advanced coal production of newly licensed capacity. However, since most of the newly licensed capacity has been
released in the previous two years, there is limited room for substantial increase in production. In the international market,
with the increase of coal production in Indonesia and India, the import and purchase opportunities of Mongolian coal,
Russian coal and Australian coal increase, and the supplementary role of imported coal in China is enhanced. On the
demand side, the proportion of non-fossil energy electricity will continue to increase in 2023, and the growth rate of coal
consumption will further slow down. In 2023, under the policy guarantee, the performance rate of mid-term and long-term
contracts for coal will be improved, and the “cornerstone” role of long-term coal associations will be effectively brought
into play. It is expected that the supply and demand of the coal market will be eased and the coal price center will move
down.

In terms of the capital market, according to the report on the work of the State Council and the monetary policy
implementation report of the People’s Bank of China, in 2023, a stable monetary policy will be precise and powerful
to make cross-cycle adjustment, which will not only support the expansion of domestic demand and provide stronger
support for the real economy, but also give consideration to short-term and long-term, economic growth and price
stability, internal balance and external balance, stabilize the sustainable support for the real economy and maintain
reasonable and abundant liquidity.

ESG Governance and Management

In addition to providing supervision and guidance, the Company’s Board of Directors holds regular meetings at which
senior management present their reports on strategic development, production safety, operation and management,
internal controls, and corporate social responsibility. There are four committees under the board, namely strategy, audit,
nomination, and remuneration and evaluation. According to the division of responsibilities, the Strategy Committee
under the Board of Directors is responsible for the decision-making of the Company’s overall risk management and
listens regularly to the relevant reports, and its responsibilities include but are not limited to the assessment of the risk
management and the assessment of its effectiveness, examination and approval of the Company’s annual report on
the overall risk management and the risk assessment reports for significant decisions. The Audit Committee under the
Board is responsible for identifying and evaluating the fraud risk of senior management and the Board of Directors, and
forming an independent fraud risk assessment report. It also regularly reviews reports on the Company’s internal controls,
evaluates the effectiveness of the internal control system, and communicates with the Human Resources Department
on issues concerning recruitment and code of conduct. It is composed of independent directors of the Company, who
carry out onsite inspection every year to monitor and make recommendations on production safety, operation and
management, internal controls, and corporate culture of the Company’s subsidiaries. The management of production
safety, employee health, energy conservation and environmental protection, fraud risk, internal control and corporate
culture has already been incorporated into the daily work of the Board and various special committees, which also closely
monitor current hot issues such as climate change response and ESG information disclosure, and propel the Company
toward balanced development in economic benefits, social benefits and ecological benefits.

To ensure that the requirements of Environmental, Social and Governance Reporting Guide (
) (“ESG Reporting Guide”) issued by The Stock Exchange of Hong Kong Limited (“Hong Kong Stock Exchange” or
“HKEX”) are effectively implemented, the Company has established an ESG work leading group. A dedicated principal
of the Company has been assigned as the group leader, with principals of different departments and offices being vice
group leaders. They make decisions on major issues during the implementation of the guidelines. All departments of
the Company’s headquarters and the subordinate base units have also assigned certain relevant personnel as group
members to take charge of daily communication and detailed implementation of ESG actions. With the establishment
of ESG work leading group, the contact mechanism of ESG management has made its appearance in the Company,
which essentially formed an ESG management framework guided by the Board of Directors, led by the management,
and supported by all departments of the headquarters and the subordinate base units. This well-established framework
ensures horizontal coordination and vertical interaction within the Company’s management structure. It guarantees the
maximum coverage, effectiveness, and sustainability of the Company’s ESG management.
 Environmental, social and governance report 2022 11

Guided by the
decision-making
of Board
of Directors

ESG Work
Leading Group
Participated
by All
Led by Departments of
the Company’s the Headquarters
Managements and the
Subordinate
Base Units

Trainings for Directors, Supervisors, and Senior Management

In 2022, the Directors, Supervisors and senior management of the Company attached great importance to strengthening
their awareness of compliance and enhancing their ability to perform their duties, actively participated in various special
trainings held by regulatory bodies and industry associations, and kept abreast of the updates of regulations and relevant
policies in listed places. Throughout the year, the Directors, Supervisors and senior management of the Company
attended the important meetings such as annual and interim supervisory meeting and bond and asset securitization
business supervision conference of CSRC Beijing Bureau, training conference on corporate governance of China
Association for Public Companies, to continuously and thoroughly study the cases of illegal and unlawful investigation
and punishment, and the cases of anti-corruption and anti-fraud. All the Directors, Supervisors and senior management
of the Company consciously abide by the laws, regulations and Articles of Association of the Company, and take the lead
in “knowing the fear and keeping the bottom line” to provide a guarantee for the continuous improvement of corporate
governance.
 Huaneng Power International, Inc.
12
ABOUT US

2.6 Table of Key Performance Indicators

Based on the requirements of HKEX’s ESG Reporting Guide and the Global Reporting Initiative (GRI)’s Sustainability
Reporting Standards ( ), Huaneng International has prepared and analyzed the Company’s ESG
2022 key performance indicators, benchmarking against the guidelines’ requirements and its peer companies, as set out
below.

Performance
Performance Indicators 2022 2021
Categories
Operating revenue1 (RMB100 million) 2,467.25 2,050.79

Sales of power and heat1 (RMB100 million) 2,360.91 1,941.25

Sales of coal ash, coal and raw materials1 (RMB100 million) 17.65 30.41

Port service1 (RMB100 million) 2.59 2.42

Transportation service1 (RMB100 million) 0.44 0.60

Economy Others1 (RMB100 million) 85.66 76.11

Total operating expenses1 (RMB100 million) 2,476.57 2,105.47

Net profit1 (RMB100 million) -109.73 -129.34

Controlled installed capacity1 (MW) 127,228 118,695

Domestic power generation (100 million kWh) 4,510.70 4,573.36

Average annual unplanned outage (times/unit·annum) 0.21 0.22

Coal consumption rate for thermal power unit (g/kWh) 287.69 290.69

Year-on-year change of coal consumption rate for thermal

1.03 0.13
power unit (%)
Environment
Consumption of standard coal (ten thousand tons of
12,724.33 13,200.22
standard coal)2

Oil consumption in production (tons) 39,332.41 37,709.02

1
The scope of statistic of Operating revenue (including Sales of power and heat, Sales of coal ash, coal and raw materials,
Port service, Transportation service and Others), Total operating expenses, Net profit and Total amount of full-time contractual
employees, takes Singapore Tuas Power Ltd., the wholly owned subsidiary of Huaneng International and Huaneng Shandong
Ruyi (Pakistan) Energy (Private) Limited into consideration, of which the Operating revenue (including Sales of power and heat,
Sales of coal ash, coal and raw materials, Port service, Transportation service and Others), Total operating expenses, and Net
profit are published in accordance with the International Financial Reporting Standards, Others including Lease income. The
statistical range of controlled installed capacity includes Singapore Tuas Power Ltd., the wholly owned subsidiary of Huaneng
International. According to the amendments to IAS 16 Property, Plant and Equipment: Proceeds before Intended Use issued
by the International Accounting Standards Board in May 2020, which was related to the proceeds from trail run stage, the
Company has made retrospective adjustments to the financial data (Operating revenue (including Sales of power and heat),
Total operating expenses, and Net profit) for the same period of last year.

2
The Consumption of standard coal is the sum of various types of energy consumption, calculated according to the General
Principles for the Calculation of Comprehensive Energy Consumption ( )(GB/T 2589-2020).
 Environmental, social and governance report 2022 13

Performance
Performance Indicators 2022 2021
Categories
Natural gas consumption (ten thousand of standard cubic
572,616.41 581,655.30
meters)

House consumption rate of thermal power unit (%) 4.37 4.34

Overall water consumption (million tons) 17,696.70 23,126.31

Fresh water consumption in power generation (million tons) 380.43 361.16

Water consumption in open cooling circulation (million tons) 17,316.27 22,765.15

Performance value of consumption of fresh water in power

0.84 0.79
generation (kg/kWh)

Performance value of emission of sulphur dioxide (g/kWh)3 0.06 0.07

Performance value of emission of nitrogen oxides (g/kWh)3 0.13 0.14

Performance value of soot emission (g/kWh)3 0.01 0.01

Sulphur dioxide emissions (tons)3 26,509.41 28,712.24

Nitrogen oxides emissions (tons)3 55,303.98 58,347.32

Soot emissions (tons)3 3,503.33 3,636.08

Environment
Total amount of energy-related direct greenhouse gas
– –
emissions (ten thousand tons of carbon dioxide equivalent)4

Greenhouse gas emissions generated by coal consumption

– –
(ten thousand tons of carbon dioxide equivalent)4

Greenhouse gas emissions generated by natural gas

consumption (ten thousand tons of carbon dioxide – –
equivalent)4

Greenhouse gas emissions generated by fuel consumption

– –
(ten thousand tons of carbon dioxide equivalent)4

Greenhouse gas emissions generated by desulphurization

– –
(ten thousand tons of carbon dioxide equivalent)4

Energy-related direct greenhouse gas emission intensity

– –
(grams of carbon dioxide equivalent/kWh)4

Total amount of energy-related indirect greenhouse gas

– –
emissions (ten thousand tons of carbon dioxide equivalent)4

Energy-related indirect greenhouse gas emission intensity

– –
(grams of carbon dioxide equivalent/kWh)4

3
The Company’s exhaust gas emissions are counted and calculated according to the actual concentration of pollutants.
4
On March 15, 2023, the Ministry of Ecology and Environment of the People’s Republic of China issued the Notice of
Implementation of Relevant Work on Distribution of National Carbon Emission Rights Trading Quota for 2021 and 2022
( 2021 2022 ( [2023]1 )). According to the Plan, the
associated organizations shall complete their quota payment of the second compliance cycle (2021-2022) by the end of 2023.
Therefore, information about the Company’s actual greenhouse gas emissions in 2021 and 2022 is considered trade secret
and will not be disclosed until the performance of the contract.
 Huaneng Power International, Inc.
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ABOUT US

Performance
Performance Indicators 2022 2021
Categories
Total water discharge (million tons) 15,434.81 20,781.65

Total discharge of sewage (million tons) 25.38 26.54

Total discharge of open cooling circulation water (million

15,409.43 20,755.11
tons)

Hazardous liquid water production (tons) 973.94 1,277.32

Production of denitration catalysts (tons) 7,937.36 7,602.35

Production of other hazardous solid waste (tons) 436.09 577.15

Intensity of hazardous waste (g/kWh) 0.02 0.02

Environment
Production of general solid waste (ten thousand tons) 4,342.80 4,707.38

Production of fly ash and cinder (ten thousand tons) 3,303.73 3,738.26

Production of desulphurized gypsum (ten thousand tons) 1,039.07 969.12

Intensity of general solid waste (kg/kWh) 0.10 0.10

Comprehensive utilization rate of fly ash and cinder (%) 96.96 92.20

Desulphurization gypsum disposal utilization rate (%) 85.31 87.07

Amount of grievous (and above) environmental accidents

0 0
(times)

Total amount of full-time contractual employees1 (persons) 57,069 57,513

Total number of male employees (persons) 44,800 44,959

Total number of female employees (persons) 12,269 12,554

Total number of employees aged 30 and below (persons) 10,955 11,386

Total number of employees aged between 31 and 50

30,142 31,540
(persons)
Society
Total number of employees aged above 50 (persons) 15,972 14,587

Total number of employees in China (persons) 56,454 56,915

Total number of employees in overseas regions (including

615 598
Hong Kong, Macao and Taiwan) (persons)

Total number of full-time employees (persons) 57,069 57,513

Total number of part-time employees (persons) 0 0

 Environmental, social and governance report 2022 15

Performance
Performance Indicators 2022 2021
Categories
Employee turnover rate (%) 0.39 0.36

Turnover rate of male employees (%) 0.39 0.36

Turnover rate of female employees (%) 0.37 0.37

Turnover rate of employees aged 30 and below (%) 1.02 0.97

Turnover rate of employees aged between 31 and 50 (%) 0.33 0.28

Turnover rate of employees aged above 50 (%) 0.05 0.07

Turnover rate of employees in China (%) 0.30 0.29

Turnover rate of employees in overseas regions (including

7.80 7.02
Hong Kong, Macao and Taiwan) (%)

Number of employees received trainings (persons) 53,890 54,720

Society Proportion of employees received trainings (%) 94.43 95.14

Proportion of male employees received trainings (%) 95.54 96.15

Proportion of female employees received trainings (%) 90.39 91.53

Proportion of management personnel received trainings (%) 96.65 95.16

Proportion of non-management personnel received trainings

94.25 95.14
(%)

Training hours per employee (hours) 160 133

Training hours per male employee (hours) 159 134

Training hours per female employee (hours) 164 130

Training hours per management personnel (hours) 100 93

Training hours per non-management personnel (hours) 165 137

 Huaneng Power International, Inc.
16
ABOUT US

Performance
Performance Indicators 2022 2021
Categories
Number of employee deaths due to duty5 (persons) 0 1

Number of contractor and subcontractor deaths due to duty6

0 0
(persons)

Grievous personal injury and death accidents employees

0 0
(times)

Personal injury and death accidents during the power

0 1
production (times)

Accidents that endangered safe operation of power grid (times) 0 0

Days lost due to work injury (days) 0 0

Society
Rate of work-related deaths (%) 0 0.0017

Total suppliers (number) 93,198 54,294

Domestic suppliers from Mainland China (number) 91,828 53,910

Overseas suppliers including Hong Kong, Macao and

1,370 384
Taiwan (number)

Customer complaints (number) 0 0

Concluded lawsuits on corruption against the Company and

0 0
its employees (number)

Average equivalent availability of thermal power units (%) 93.37 93.26

5
Number of employee deaths due to duty: the number of employees who died from production safety incidents. In 2020, no
work-related death occurred within the Company.

6
Number of contractor and subcontractor deaths due to duty: the number of deaths of contractors and subcontractors during
production for which the Company is responsible.
 Environmental, social and governance report 2022 17

2.7 Communication with Stakeholder and

Identification of Material Issues
2.7.1 Information about and Communication with Stakeholder
Huaneng International has always been adhering to the corporate responsibilities of “providing sufficient, reliable
and environmental-friendly electrical power to the society, creating a long-term, stable and incremental return to
our shareholders, and providing our staff with an environment which encourages contribution and facilitates career
development and integrated development” by fully considering and effectively responding to stakeholders’ demands, and
worked together with all stakeholders to promote economic and social development and share corporate development
achievements.

Main Mechanisms
Expectations of
Stakeholders of Communication Responses from the Company
Stakeholders
and Participation

Increase of the Truthful and thorough disclosure of

Company’s market information; investment of efforts in improving
value and profitability; Shareholders’ meeting; business performance and generating profits;
Investors continuing improvement information disclosure; absorption of market opinions for rectification
of the Company’s Company’s website of operating behaviors; investment of efforts in
environmental and social the improvement of environmental and social
responsibility performance responsibility management

Assurance of high-quality Supply of sufficient, reliable and eco-friendly

Making contracts and
Clients products; guarantee of energy and services; guarantee of safe stable
agreements
good service delivery of power and heating

Guarantee of welfare, Strict observance of provisions within

health and security; employment contracts; improvement of
improvement of the institution of employee’s assembly;
communication Employment contracts;
Employees improvement of administration of salary
mechanism; impartiality employees’ assembly and welfare; provision of healthy and safe
concerning in chances work environment; provision of avenues for
of promotion and vocational advancement and training
development

Making contracts
and agreements;
Honest, fair and just Adherence to open and transparent business
regular communication
cooperation; mutual principles and processes; active fulfillment
Suppliers through mutual visits;
benefits and win-win of contracts and agreement; promotion of
correspondence
scenarios mutual visits
through files, letters and
telegraphs

Promotion and
Joint cultivation of organization of public Organization of and participation in public
communal civility; support welfare activities; welfare undertakings; building harmonious
Communities for public welfare; focus participation in volunteer and civilized communities; attempts at growth
on social development activities; guarantee of of local employments
employment

Observance of disciplines Participation in relevant Strict observance of relevant laws and

and laws; compliance with energy meetings,
Regulatory stipulations; vigorous advocacy and promotion
operation; green energy; work reports, policy
Authority of energy conservation and emission
energy conservation and consultation and reduction
emission reduction information submissions

Fair competition; Participation in industry Competition and cooperation with

honest cooperation; associations7, policy competitors; jointly creation of a healthy and
Competitors studies, daily meetings orderly competitive environment; mutual
joint development; safe
production and business exchanges benefits and joint progress

7
Such as China Electricity Council, Chinese Society for Electrical Engineering, Global Energy Interconnection Development and
Cooperation Organization, etc.
 Huaneng Power International, Inc.
18
ABOUT US

2.7.2 Process of Identification of Material Issues

According to requirements of HKEX’s ESG Reporting Guide, Huaneng International refers to relevant procedures
for substantive analyses from GRI, collects and identifies issues at the heart of key stakeholders’ interests by way of
questionnaires, interviews, etc. Huaneng International analyses and prioritizes collected information and determines the
Company’s material issues with respect to ESG disclosed in the report.

The process of identification of material issues is divided into four steps:

Identifying relevant issues: sources of issues include Environmental, Social

01 and Governance Reporting Guide of HKEX, GRI Sustainability Reporting

Standards (
international peers.
) and matters disclosed by domestic and

Prioritizing issues: internal stakeholders, when it comes to

prioritization, mainly consider impacts on the Company’s strategies,
policies, processes and objectives, on the Company’s competitive
advantage and management excellence, and the Company’s current
and future financial status; external stakeholders, with respect to
prioritization, largely focus on the extent to which a certain issue has
02
impacts on assessment and decision-making of the Company as well
as on its own interests.

03 Deliberating: the Company management assesses and approves identified

issues and their prioritization.

04
Reviewing: after the end of the reporting period, the Company will
request internal and external stakeholders to provide feedback on the
contents of this report to enhance future disclosure.
 Environmental, social and governance report 2022 19

Following our communication with various stakeholders, the Company has identified the following issues as well as their
respective priorities.

Law-Abiding and Compliance

Control of Emissions ▲
High

Use of Energy ▲
Ecological Protection Clean▲
and Sustainable Energy
Safe Production and Occupational Health ▲ ▲ ▲ ▲
Water Resource Management ▲ Anti-Corruption
▲
Stable Power Supply
Stakeholders’ judgement on the materiality of the issues

Response to Climate Change ▲

and Emergency
Response to Outage

Scientific and Guarantee of Employee

Technological Innovation ▲ Rights and Interests
▲▲
Supplier Social and Environmental
Risk Management
Customer Service ▲
and Satisfaction

▲ Employee Training
Employee Diversity ▲ and Development
and Equality

▲ ▲ Child Labour and

Contribution to Forced Labour
the Community

Impact on the Company High

Grading Standard: Chart Description:

• According to their own degree of • Horizontal Axis: Internal • Vertical Axis: External
concern, internal and external stakeholders’ grading for stakeholders’ grading for
stakeholders grade different issues each issue each issue
in accordance with their importance.
 Huaneng Power International, Inc.
20
ABOUT US

DISTRIBUTION OF POWER
PLANTS OF THE COMPANY

The controlled installed

capacity of the Company as
at 31 December 2022 was
127,228 MW, distributed
in areas as depicted in the
chart (Unit: MW)
Environmental, social and governance report 2022 21
 Huaneng Power International, Inc.
22
ADVANCING THE REFORM OF ELECTRIC POWER SYSTEM TO PROMOTE DEVELOPMENT

03
ADVANCING THE
REFORM OF ELECTRIC
POWER SYSTEM TO
PROMOTE DEVELOPMENT
Since the reform of electric power system in March 2015,
the National Development and Reform Commission and
the National Energy Administration have worked with local
governments and electricity-generating companies. The
construction of the national power market is progressing
steadily and orderly, with the proportion of electricity
traded on market increased significantly. The reform of
electricity market has been gradually advanced.
Environmental, social and governance report 2022 23
 Huaneng Power International, Inc.
24
ADVANCING THE REFORM OF ELECTRIC POWER SYSTEM TO PROMOTE DEVELOPMENT

Advancing the Reform of Electric Power System to Promote Development

The reform of electric power system has been pushed forward. In 2022, the Notice on Further Improving the Market-
based Coal Price Mechanism ( ), the Guiding Opinions on Accelerating
the Construction of a National Unified Electricity Market System ( ), the
Notice on Accelerating the Construction of Electricity Spot Market ( ), the
Notice on Promoting Green Electricity Certificate Trading by Electricity Trading Institutions (
), the Notice on Matters related to the Orderly Promotion of Green Electricity Trading (
) and other reform policies were introduced, the transformation towards coordinated
operation system of various markets at all levels was accelerated, and further progress was made in the reform of market-
oriented electricity prices. The medium and long-term trading prices of electricity and coal continued to be linked such that
the price of electricity can better reflect the price of coal. Electricity spot trading with volatile prices and fluctuating ranges
extended to all provinces and regions. The regional unified electricity market was piloted in the South China and Yangtze
River Delta. An unprecedented breakthrough was achieved in capacity compensation mechanism of large wind power
and photovoltaic bases. The green electricity trading with affordable new energy projects at the core was proceeded in an
orderly manner. Those price-centered initiatives inspired the motivation and initiative of each party to achieve the balance
of power supply and demand, and to consume green power.

The electricity market witnesses intensified competition. Differences in resource endowments, market rules, market
players and interests bring new challenges to power generation enterprises in terms of policy support, industry synergy
and regional coordination. Due to the mounting pressure of maintaining stable economy, it is expected that in the short
run, the rise of the medium and long-term trading prices of coal and electricity will be retained within 20% based on
the benchmark price. Especially with the forecast of lowering coal price regulations, coal and electricity enterprises
will become differentiated in bidding strategies. As different types of electricity generators will develop trading strategy
based on their own characteristics and core demands, the competitive differentiation in the coal and electricity market is
expected to intensify. The discrepancy in the structure of power purchase by electricity providers increases as new energy
prevails in the market. Since the integration cost (i.e., the cost of balancing services provided by coal, electricity and other
regulatory power sources for new energy integration) is beyond consideration when purchasing new energy power, the
overall cost of purchasing new energy power maintains on the low side. Electricity providers purchasing greater new
energy leverage their cost advantages to attract customers with competitive prices, which will ratchet up the forecast of a
downward trend in electricity prices and is not conducive to the healthy and stable development of the retail market.

As one of the most influential enterprises in the electric power industry, Huaneng International will lend its full support
to national policies and work conscientiously for arrangements concerning the Central Economic Work Conference and
various government work reports by participating in the build-up of electricity market and transactions, and by playing
the role of market mechanisms, enhancing security of power supply and supply capacity of clean electricity under
market mechanism. Huaneng International enhances communication with electric power end customers, enters strategic
cooperation and explores potential. In 2022, the Company participated in the green power trading for 2023 for the core
office area in subcentral Beijing as the exclusive power generation company headquarters, and our headquarters is now
100% fueled by green power, improving the image of a green enterprise. Besides, Huaneng International makes active
response to auxiliary services and demand-side requirements. In Zhejiang, we put into operation China’s first virtual power
plant featuring dispatching systems and real-time systematic adjustment. We provide value-added services to enhance
customer engagement and improve the reputation and market recognition of our brand in terms of customer services and
social responsibility fulfillment. We work together with power users to revolutionize energy production and consumption
and build a clean, low-carbon, safe and efficient energy system.

Our Targets
Against the backdrop of the reform of the electric power industry, Huaneng International has established the marketing
concept of “efficiency first with price at the core”, under which we put emphasis on the coordination of price and volume
and improve the level of digitalization, in a bid to achieve further breakthroughs in revenue and benefits generation and
cultivate the market competitiveness of a world-class enterprise.

The goal of wholesale market trading is to make the utmost of the national power price policies, speed up the
establishment of transaction assistance decision-making systems, and achieve breakthrough in the integrated trading
power prices by spot trading, time-of-day trading, energy-intensive trading, and other means to ensure that they are
higher than the market average.

The objective of retail market trading is to reasonably expand the sales of electricity and enlarge the market share of
electricity sales while better reflecting the purchase prices at the wholesale side, thus catching up with and surpassing the
share of installation. As the load management is reinforced in China, the Company will work with electricity providers to
deepen the development of adjustable resources such as virtual power plants. We will make active response to auxiliary
services and demand-side requirements, open up new path for profit growth, and develop a unified service concept in
power sales and social responsibility fulfillment to strengthen brand competitiveness.
 Environmental, social and governance report 2022 25

Management Mechanism

In 2022, confronted with challenges brought by the advance of electricity reform

and the tough task of guaranteeing energy supply, Huaneng International took
positive actions to improve efficiency and raise electricity and heat prices, thus
recording a year-on-year increase in revenue of over RMB6.14 billion while
ensuring power supply. The major measures adopted are as follows:

1 2
Sparing No Effort to Implement Making Flexible Adjustment of Power
Supporting Policies. The Company Generation Strategy. We insistently
facilitated the transformation of power kept an eye on and studied the national
transmission pricing mechanism from the macro-economy, the supply and demand of
benchmark coal price at sending end to power, and the situation of the coal market.
a market-based pricing, promoted the From the perspective of maximizing the overall
green certificate as the only proof of green benefit of the Company, we coordinated all
power consumption, and expanded the subsidiaries and power plants to adjust power
scope of applying the coal and electricity generation and trading strategies, explored
capacity compensation mechanism. We the potential of internal coordination and peak
helped to ensure electricity pricing policies regulation, and encouraged units with positive
were fully delivered in certain areas, raised contribution margin to maximum their power
the monthly trading prices in Chongqing, generation while securing electricity and
Guangdong Province, Hunan Province and heating supply. The Company’s medium and
Yunnan Province to the expected range, long-term trading at 1.2 times the benchmark
and increased the price of electricity from coal price contributed over 80% of coal
Gansu Province to Hunan Province year-on- power revenue. Four regions participated
year. In addition, the Company enabled the in intra-provincial spot trading saw increase
adjustment of the regulatory parameters for in revenue of RMB2.4 billion compared to
market force behavior in Shandong, raising the under medium and long-term contracts, and
ceiling of spot clearing price from RMB0.55/ eight regions participated in inter-provincial
kWh to RMB0.76/kWh. The two-part tariff spot trading witnessed increase in revenue
for Chongqing Liangjiang Gas Turbine was of RMB1.61 billion. The revenue from cross-
subject to consistent pricing policies instead provincial power transfers in northeast and
of year-by-year approval, and a gas-electricity southern regions grew by RMB280 million, up
pricing linkage mechanism was established, by five times year on year. The Company’s net
marking a historic breakthrough. revenue from auxiliary services was RMB1.47
billion, increased by 19.7% year-on-year.
The prices of new energy at affordable prices
participating in green power trading surpassed
the benchmark price, achieving a premium of
7.5 cents, up by 18.8%.

3
Enhancing Talent Management and Team Building. The Company boosted the physical operation of the operation
center of the spot pilot subsidiaries, guided the pilot subsidiaries to accelerate the selection, training and reserve of trading
personnel, and organized power trading skills competitions to promote practical use and to enhance the technical level
of trading personnel. In the 2022 National Power Industry Vocational Skills Competition (Power Trader) organized by the China
Electricity Council, the Company’s marketing team won two first prizes by group and two third prize by group, five players were
awarded the title of “Industry Technical Expert” and nine were awarded the title of ” Outstanding Operator”. Outstanding operators
were selected to lead the training of inter-disciplinary personnel with practical trading skills and ability of policy studying and
market analysis in each subsidiary, in a bid to cultivate a first-class marketing team in China’s power sector.
 Huaneng Power International, Inc.
26
PERFORMING DUTIES BY ASSIDUOUS ACTION

PERFORMING
DUTIES BY
ASSIDUOUS
ACTION
 Environmental, social and governance report 2022 27

04 To speed up the construction of a world-class listed

power generator and pursue new development
philosophy, Huaneng International coordinates production
safety and green development and plays an active
part as a state-owned enterprise, devoting every effort
to serving national development and securing energy
supply. The Company optimizes the system to guarantee
power supply, adjusts corporate governance structure
and deepen corporate reform to steadily reinforce the
compliance management capabilities and achieve high-
quality development in compliance with the law.
 Huaneng Power International, Inc.
28
PERFORMING DUTIES BY ASSIDUOUS ACTION

Performing Duties by Assiduous Action

4.1 Improving Capability of Guaranteeing Energy
Supply
Huaneng International is committed to developing itself into an international leading power generation listed company and
providing sufficient, reliable and environmentally friendly power and high-quality energy services for the customers. Each
of the Company’s power plants has put in place contingency plans and response measures to ensure a safe and stable
power supply.

Establishing a Policy Guarantee Mechanism

In accordance with the Company’s emergency management measures for major incidents and accidents and the
contingency plans for major production accidents and large-scale blackouts in case of accidents such as power units
tripping, alternating current and direct current power outages, bus bar outages and large-scale power grid outages
caused by system collapses, all units of the Company have formulated Emergency Plan for Thorough Power Failure
( ), Emergency Plan for Black Start ( ), Plan for Island Operation (
) and other preparatory measures and established corresponding emergency handling organizations in order to
minimize negative impacts on society. These include unified leadership, clear division of labor, rapid response and fluent
communication upon occurrence of accidents. Besides, in case of an emergency, the Company and subsidiaries will
also manage accident report to power dispatch department and offices of local governments, handle examination and
approval of information disclosed to the public, start emergency measures and be attentive to public concern to reduce
the negative impact on society. We put in rescue control measures with inspection, prevention and repair of power outage
to ensure timely recovery of power generation and resumption of power supply.

Strengthening Daily Equipment Management

The Company has focused on its equipment and technology transformation management to ensure the safety, reliability
and advanced nature of equipment. The Company has been pushing ahead with the work of “reducing deficiencies and
controlling unplanned power outages”, strengthening generator units’ unplanned power outage control with the unplanned
power outage control as a breakthrough point, issuing unplanned power outage analysis report and conducting related
monthly performance reporting. The Company initiated equipment management and risk investigation for several power
plants, as well as project planning and process quality inspection for Grade A/B8 overhauling units to enable full process
management of reliability indicators for the main engine and key auxiliaries. We also strengthened technical supervision
and management, conducted site evaluation and stepped up the efforts in technology transformation projects to
constantly improve equipment health and ensure the safety of equipment and our staff.

As of December 31, 2022, the Company had achieved an average 0.21 times of unplanned outages per unit per year.

8
A/B: Level-A maintenance refers to an overall dismantling, inspection and repair of the generator unit to maintain, restore or
improve the performance of equipment; Level-B maintenance refers to a portion of level-A maintenance items carried out
conditionally and specifically based on the equipment status, system features and operation conditions of the unit.
 Environmental, social and governance report 2022 29

Strengthening the Guarantee of Heating Safety

With earnest implementation of the requirements of China and industry regulators on heat supply, the Company has
established a leadership team for power and heat supply guarantee in a timely manner, arranged a supply-guarantee plan,
conducted daily supervisions, weekly supervision and monthly summary, made assiduous efforts in ensuring the security
of supply-guarantee funds, and promoted the implementation of various measures. All the subsidiaries resolutely shoulder
their political and social responsibilities, source coal through various channels, strengthen equipment maintenance,
and strictly implement instructions of power grid dispatching, with coal-fired power generator units operating as per
requirements of such instructions. By doing so, the Company has fully performed its responsibilities and duties. In
addition, the Company has also taken the following measures to strengthen the guarantee of heating safety.

1 Enhancing the management of boiler fuel. We formulated specific plans for fuel procurement, storage and
transportation, optimized plans for mixed burning of coal and improved the measures for low-load and stable
burning, so as to ensure steady operation of power units.

2 Ensuring personnel safety in heating production. With improvement to the accountability system, regulations
and operating instructions related to production safety, we enhanced safety education and training for relevant
personnel, provided inspection equipment and protective materials, and organized drills for emergency rescue.

3 Attaching great importance to management of direct heating network. We maintained the normal operation
of the heating network by conducting routine management of heating network equipment, ensuring sufficient
reserve of materials and human resources, timely eliminating the defects of heating network equipment and pipes,
and focusing on the operation and management of water replenishing for heating network.

4 Being well prepared for heating emergency. We improved our capabilities of dealing with disastrous events
by preparing emergency heating measures in advance, formulating emergency plans in case of outage of heating
equipment, quickly identifying, treating and recovering failure equipment, establishing emergency plans for
personal injury and death accidents, and enhancing the communication between local government and heating
companies.

5 Strengthening the on-duty work of heating. We strengthened the policy of personnel on duty on holidays,
executed the policy of major operations with the attendance of leaders. We reported the operation of heating units
in a regular basis and reported the heating emergencies in a timely manner.

6 Enhancing the awareness of heating services. By taking the initiative to find out the outstanding heating
issues raised by our people, we gained understanding of their demands, and resolved the issues effectively.
 Huaneng Power International, Inc.
30
PERFORMING DUTIES BY ASSIDUOUS ACTION

Successfully Coping with Natural Disasters and Extreme Weather

In 2022, the subsidiaries of the Company worked together to overcome severe tests, and successfully accomplished the
task of ensuring power supply in this crucial period. The production safety of the Company’s system overall maintains
stable. The Company always considers stable supply of power and heat as highly urgent political tasks, assumes duty to
guarantee energy consumption for people’s livelihood, and resolutely overcomes the adverse effects of the continuous
sharp increase of coal prices and lower-than-cost price. The Company resolutely shoulders and implements the political
responsibility of guaranteeing the security of electricity and heat supply.

Multiple Measures were Taken at Huangtai Power Plant to Cope

with Extreme Weather and Secure Power Supply
Huangtai Power Plant kept a watchful eye on energy supply guarantee,
potential risks identification and other major issues, and implemented a
power supply package in winter to ensure stable supply of power and
heat in cold wave and extreme low temperature:
1. The Plant made a full preparation to protect equipment and devices
against cold and freezing conditions in winter. It pre-checked the
cold and freezing conditions on site on a timely manner, performed
self-inspection and self-correction in strict accordance with the Anti-
freezing and Anti-coagulation Measures ( ), and set
out clear responsibilities and tasks for personnel at each profession
and position to avoid equipment and furnace shut-down due to low
temperature.
2. In the face of power and heating peak in winter, the Fuel Department
of the Plant looked back at the pictures of coal storage in winter of
previous years and arranged the operation of coal yards in advance
to strengthen the management of coal receipt and unloading and
improve the inventory level.
3. The fuel unloading personnel of the Plant was on duty at any time
to facilitate vehicles to unload as they arrived without delay or
overstock, so as to avoid any coal shortage affecting the power
generation of the units. Based on the principle of “separate piles in
storage, first-in first-out, and regular replacement”, the Plant stored Personnel Checking Equipment at
coal appropriately, minimized the loss of calorific value of the stored Huangtai Power Plant in Response to
coal, integrated coal receipt, unloading and storage for the balance Extreme Weather
between receipt and consumption and sufficient inventory to meet
the coal demand of units for power generation and heat supply in
this winter.
 Environmental, social and governance report 2022 31

Successfully Guaranteeing Energy for Important Periods

Confronted with unprecedented pressure on supply in 2022, the Company worked united as one in effectively minimizing
the impact caused by drastic drop in imported coal, cold wave and extreme high temperature, drought in major river
basins and other adverse factors, and maintained stable fuel supply. We successfully accomplished our task of supply
guarantee for the Olympic and Paralympic Winter Games, the peak season in summer, the 20th National Congress and
other important periods and major events, wining recognition and praise from national ministries and local governments
for our fulfillment of duty.

During important periods such as the beginning of the year and the Spring Festival, the Company took various production
safety measures to ensure safe and stable power production and reliable heat and steam supply:

1 Performing safety management for operating power units. Learning from the internal and external production
safety accidents, we seriously implemented the policy of “Two Tickets and Three Systems” 9, strengthened
operation management and routine inspection, improved equipment defect management and attached great
importance to equipment defect elimination.

2 Strengthening the management of external supply of heating and steam. By earnestly implementing
various measures of the Company, we enhanced the inspection and maintenance on heating equipment and
heating pipe network and improved relevant emergency plans and early warning mechanism.

3 Attaching great importance to fuel support. Giving priority to ensuring people’s livelihood and supply, we took
into account the price control and effectively enhanced allocation and transportation, so as to ensure the supply.

4 Enhancing allocation and transportation. We managed to match the resources with the transport capacity
and made arrangement for urging of delivery and shipment. Considering the potential adverse effects of extreme
weather on transportation, we made application for green channel support to local traffic management department
in advance.

5 Continuing the pandemic prevention and control. We strengthened the pandemic prevention and control in
production, and adhered to the implementation of all precautionary measures, so as to guarantee for the life and
health of employees and ensure stable and orderly conduction of routine production work.

9
Two Tickets and Three Systems: work ticket and operation ticket; shift system, patrol inspection system and the system of
periodic test and rotation of equipment.
 Huaneng Power International, Inc.
32
PERFORMING DUTIES BY ASSIDUOUS ACTION

4.2 Sticking to Honest and Law-abiding Practices

for Compliant Operation
Huaneng International continuously enhances its anti-corruption efforts, insists on clean and honest business practice,
strictly manage enterprises in accordance with the law, practice compliance operations, and formulate sound rules and
regulations and supervision systems. We closely monitor new changes in regulatory laws and regulations in the place
of listing to grasp the regulatory trends and effectively implement the new regulatory requirements. The Company is
committed to operational compliance, regulated operation to continually improve its risk prevention ability and corporate
governance, and building a corporate culture that values integrity and compliance.

4.2.1 Governance by Law

In 2022, upholding Xi Jinping Thought on Rule of Law, the Company thoroughly implemented the strategic plan of
the CPC Central Committee on comprehensively advancing the rule of law. Under the unified leadership of the Party
committee and management of the Company, the Company comprehensively advanced the rule of law and deepened
reform of the rule of law by integrating the concept of governing businesses by law into corporate governance,
improving the management of compliant operation, enhancing the capability of the team engaged in the rule of law.
With the strengthening of the construction of corporate rule of law culture as a guarantee, comprehensively promote the
construction of rule of law of Huaneng and deepen reform to improve the level of rule of law construction.

Improving the Corporate Governance Structure

After years of exploration and practice, the Company has insisted on deepening reforms based on the requirements of
the modern enterprise system, upgraded the organizational system, and improved our modern governance system and
governance capacity to form a standardized and sound corporate governance system in all respects. We have established
and improved the corporate governance structure consisting of the shareholders’ meeting, the Board of Directors, the
Board of Supervisors, and management, and continuously improved the system of decision-making, execution and
supervision on the basis of equal rights and responsibilities, coordinated operation, and effective checks and balances.

Strengthening the Mechanism of Litigation Risk Prevention and Control

The Company insistently strengthens the management of litigation and disputes, and supervises the handling of the
cases carried over from the past following a problem-oriented approach. For the significant cases that have impaired the
Company’s reputation or caused heavy losses, the Company strengthens coordination and urges relevant subsidiaries to
make active and responsible response, handling cases in a standardized and effective manner. The Company has also
strengthened the management of filing and statistics of litigation cases, improved the quality of case information reporting,
and paid attention to the progress of cases in real time. We have carried out the identification of legal and management
risks of cases, checked vulnerabilities in the system and management, and issued targeted risk warning to improve the
management level.
 Environmental, social and governance report 2022 33

Enhancing the Review of Legal Issues

Following the strategy of governing the enterprise by law and the idea of solving the difficulties of reform with a thinking
and methodology based on the rule of law, the Company promoted the thorough integration of legal affair management
and operation management to ensure mutual cooperation and efficient coordination between the legal affair department
and other business departments and regulate the working process. The Company improved its engagement in legal
issues review, regulations and systems, asset disposal, project development, capital operation, legal authorization,
contracts and business administration, etc., to fully control legal risks and ensure that all operations will be carried out in a
lawful and reliable manner. By promoting the integration and the interfacing of the legal management information system
and other business operation systems, the Company fully exploits the management efficiency of the information system,
and continuously improves the level of information management of legal affairs.

Improving Staff’s Awareness of Laws by Various Activities

The Company further advances various publicity and education campaigns on laws in innovative manner, and promotes
the implementation of the relevant requirements. In 2022, the Company carried out publicity on laws comprehensively and
systematically based on ours needs, as required by the higher authorities.

1 Conducting publicity on laws in areas closely related to the development of the Company. The Company
has strengthened the promotion and study of the Constitution of the People’s Republic of China ( ) and the
Civil Code ( ), focusing on the laws and regulations related to intercompany transactions and information
disclosure of listed companies. We have thoroughly learned the laws and regulations on enterprise reform and
promotion of the high-quality development, and made further research of policies and regulations regarding
environmental protection and safety.

2 Continuing with various legal awareness campaigns associated with employees’ work and lives. A
series of briefings on the new laws were released via online columns for the purpose of further publicizing the
laws and regulations and regulatory requirements such as the Securities Law ( ), the Company Law (
), the Administrative Measures for the Disclosure of Information of Listed Companies (
), the Guidelines for the Implementation of Affiliated Transactions of the Shanghai Stock Exchange (
), etc. The Company continues to pay attention to the trends of external regulations, and
incorporates new regulatory requirements and policies into its plan of law publicity in a timely manner, in a bid to
legally guarantee the standardization and institutionalization of the Company’s information disclosure system.

3 Carrying out intensive legal awareness campaigns. Through the Constitution Awareness Week, National
Security Education Day and other major occasions for publicity on laws, the Company will create a sound
atmosphere for publicity on laws and cultivation of legal awareness by distributing books, putting up posters and
showing promotional films.
 Huaneng Power International, Inc.
34
PERFORMING DUTIES BY ASSIDUOUS ACTION

4.2.2 Anti-corruption
In 2022, strictly complying with the Oversight Law of the People’s Republic of China ( ), the
Regulation on the Implementation of the Oversight Law of the People’s Republic of China (
), and the Criminal Law of the People’s Republic of China ( ) and other laws and regulations, the
Company assiduously carried out conduct improvement and anti-corruption campaigns, urged all employees to uphold
ethics as well as Party disciplines and state laws and created an atmosphere where everyone remained disciplined,
abided by the law, discharged duties in a standardized fashion, and practiced clean operation so as to provide reliable
support for the Company’s high-quality business development.

In 2022, the number of lawsuits on corruption raised and concluded against the Company or its employees was zero.

Implementing the Responsibility System for

Conduct Improvement and Clean Governance

1 The Company held the 2022 conference of conduct improvement, clean governance and anti-corruption
campaigns.

2 The Company formulated and issued the Key Task Division Plan for Conduct Improvement, Clean Governance
and Anti-corruption Campaigns of the Company’s Party Committee for 2022 ( 2022
) which broke down the annual conduct improvement and anti-corruption campaigns
into 35 specific tasks in seven aspects and defined the division of responsibilities.

3 All the departments and offices signed a total of 12 letters of commitment to integrity for 2022 under the
organization of the Company, and carried out the segregation of duties for conduct improvement and clean
governance among staff at all levels.

4 The Company convened a special report meeting on comprehensive and strict party governance by the
Company’s party committee, listened to the “dual responsibilities” of the Company’s team members, the special
supervision of the Company’s discipline inspection commission, and the work reports of various departments and
offices at the management, supervision, and execution levels, and consolidated the responsibility for managing the
party and governing the party.
 Environmental, social and governance report 2022 35

Enhancing Inspections, Rectifications

and Practical Use of Results

1 The Work Plan for Inspections and Rectifications and the Supervisory Ledger for Inspections
and Rectifications have been established. Findings and rectification measures are recorded
in the Supervisory Ledger and the “case cancellation system”10 management is implemented. The Report on the
Progress of Inspection and Rectification was prepared to improve the information
management system of inspections.

2 The Company sent out work tips in a timely manner, held 12 meetings of the rectification office, compiled and
released four issues of Briefing on the Inspection and Rectification , and carried out “one-
to-one” supervision of the rectification on 13 departments and offices to facilitate inspection and rectification.

3 The problems and rectification tasks of the Company’s Party Committee were basically solved and completed,
which strongly promoted the Company’s high-quality development.

Strengthening Daily Supervision

and Targeted Supervision

1 The Company has explored and established an overall supervision system enforced by the Discipline Inspection
Commission to promote the coordination of supervisions at all levels. The Company also has set up the Overall
Supervision Ledger by the Discipline Inspection Commission in 2022 ( 2022 ) and
rectified problems identified from the ledger check according to their fulfillment on a regular basis.

2 The Company strengthens the supervision of the “top leaders” and the leadership team. To effectively strengthen
the supervision of the “top leaders”, the secretary of the Party committee and the secretary of the Discipline
Inspection Commission of the Company carry out “one-on-one” key point interviews with principals of 13
departments and offices to point out problems in person and urge them to rectify.

3 The Company has established the integrity archives of middle-level management cadres of the Company’s Party
committee and implemented dynamic management.

4 The Company strictly assesses the integrity when appointing and promoting cadres to prevent the promotion or
appointment of any cadre with improper conduct.

5 The Company strengthens the risk prevention and control of overseas projects. We assiduously carry out
education on ideals and principles and compliance management for overseas staff by formulating the Implementing
Opinions on Governance of Overseas Corruption ( ) and promoting the
formulation of the Implementation Rules for Enhancing Party Branches Building of Tuas Power (
), so as to constantly improve overseas staff’s awareness of integrity.

10
Case cancellation system: the process of rectifying items identified and recorded in the Supervision Ledger. The item should
and only should be removed from the ledger once the rectification of it is completed.
 Huaneng Power International, Inc.
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PERFORMING DUTIES BY ASSIDUOUS ACTION

Strengthening Integrity Campaigns

1 The Company sends integrity message at important moments. On major holidays such as the New Year’s Day,
the Spring Festival, the Labor Day, the Dragon Boat Festival, the Mid-Autumn Festival, and the National Day, we
send integrity messages to the Company’s employees to urge cadres at all levels to uphold integrity, frugality, and
high moral standards.

2 Based on the typical cases of violating the eight-point decision on improving work conduct announced by the CPC
Central Commission for Discipline Inspection and the National Supervisory Commission, we strengthen warning
education to enhance cadres’ awareness of practicing the eight-point decision on improving work conduct and
the relevant implementation rules on their own initiative.

3 The Company vigorously rectifies the formalism and bureaucratism and carries out targeted supervision of relevant
problems. The Company conducts self-inspection, investigation, and supervision. All identified problems have
been immediately handled and rectified.

Conducting Education on Professional Integrity

1 The Company practically carries out disciplinary interviews under the “four forms”. The Company formulated the
disciplinary interview plan under the “four forms” in 2022. We urge all departments and offices of the Company to
arrange reasonable interview time and give reminders on a regular basis to ensure smooth progress of interviews
as scheduled. Throughout the year, 60 routine interviews were conducted.

2 The Company holds onto the warning education on integrity. During the year, 21 warning educations were
conducted, through which we further raised employee awareness of self-discipline and integrity. A solid foundation
for uprightness and entrepreneurship was laid for the Company.
 Environmental, social and governance report 2022 37

Facilitating the Construction of

Discipline Inspection Teams

1 The Company strengthens the standardized management of letters, visits and reports, strictly implement the
Detailed Rules for the Implementation of the Discipline Inspection Commission of the Company (Trial) (
( ) ), and the Company sets up reception places, recording phones, reporting mailboxes,
etc. to accept letters, visits and telephone reports. The management of complaint reporting and problem clues
shall adhere to the principles of centralized management, standardized procedures and strict discipline, strictly
implement the handling procedures according to the management authority, and establish a management
account. The personnel of the Company’s Discipline Inspection Commission strictly implement the confidentiality
system and avoidance system, strictly control the scope of knowledge of the review and investigation work, and
are not allowed to privately retain, conceal, consult, extract, copy, or carry clues to issues and information related
to the case, as well as to disclose the review and investigation work. We improved the mechanism for assisting in
investigation and evidence collection, developed the Form of Transferring Relevant Evidence and Documents (
) and the Form of Providing Relevant Evidence and Documents (
) to further standardize the investigation and evidence collection disposal and approval processes.

2 The Company intensifies training for full-time and part-time discipline inspection personnel. We organized 8
trainings on discipline inspection and supervision for discipline inspection personnel, and distributed training
materials for them to consistently improve their political awareness of and competence in discipline inspection.

3 The Company rigidly follows the requirements of discipline inspection to strengthen self-supervision. Through daily
work exchanges, and routine interviews, we conduct strict education, management and supervision on discipline
inspection personnel to prevent any unnoticed corruption practices.
 Huaneng Power International, Inc.
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PERFORMING DUTIES BY ASSIDUOUS ACTION

4.2.3 Protection of Intellectual Property Rights

The Company earnestly implements the decisions and arrangements of the central government on protection of
intellectual property rights to further enhance the protection of intellectual property rights, and thoroughly implements
the requirements of the Plan on the Development of Intellectual Property Rights Power (2021-2035) (
( 2021-2035) ) and the Plan for Protection and Application of Intellectual Property Rights for the 14th Five-Year
Plan Period “( ” ) so as to facilitate the high-quality development in patent and
technological innovation of the Company. The Company constantly establishes and improves the intellectual property
rights protection systems, and based on patents-related needs, unremittingly refines the requirements and policies for
intellectual property rights agency to open and optimize channels for patent application, guarantee the efficiency of patent
application, and promote the steady development of quality and quantity of patents. To effectively strengthen the strategic
layout of intellectual property rights, the Company launched a special project for patent enhancement, and cooperated
with professional organizations to optimize the cooperation mechanism, integrate resources and coordinate and carry out
patent application and renewal based on the Company’s management conditions, further standardizing the management,
development and application of intellectual property rights, refining the protection mechanism for technological
achievements and facilitating the formation and transformation of technological innovation and proprietary intellectual
property rights. As of December 2022, the Company had coordinated with the agency partners to file 206 applications for
patents and utility model patents and carry out 481 patent renewals.

In 2022, the Company strictly followed the Patent Law of the People’s Republic of China ( ),
the Copyright Law of the People’s Republic of China ( ), the Trademark Law of the People’s
Republic of China ( ), the Rules for the Implementation of the Patent Law of the People’s
Republic of China ( ), the Regulations for the Implementation of the Copyright Law of
the People’s Republic of China ( ), the Detailed Rules for the Implementation of the
Trademark Law of the People’s Republic of China ( ) and other laws and regulations
related to intellectual property rights, abided by the international conventions and general standards related to protection
of intellectual property rights to ensure that the Company is protected in the ownership and use of intellectual property
rights under applicable laws, and received no punishment or lawsuit from the government for intellectual property
infringement.
 Environmental, social and governance report 2022 39

Formulating Patent Improvement Measures

Patent quality is an important symbol to measure technological innovation. The head of the Company’s secondary unit
division and the chief engineer took the lead in establishing a special working group to explore the establishment of a
responsibility system for technological innovation headed by the chief engineer, and refine and implement various patent
indicators, deeply integrating the patent work with scientific research, planning, infrastructure and technical transformation
of production, and formulating patent improvement measures appropriate to the Company.

Strengthening Trainings for Intellectual Property Rights

The Company actively conducts research on the compliance management of intellectual property rights. We organize
patent work trainings within the system and complete the patent application and protection as well as the trademark
protection and publicity to improve the patent application knowledge of frontline employees and guide all units to achieve
Industry-University-Research-Practice cooperation, in an effort to promote joint application, ownership and use of patents.

Protecting and Maintaining Intellectual Property Rights

Huaneng International attaches great importance to the protection and maintenance of intellectual property rights,
and requires all units to strictly follow relevant laws, regulations and policies. In accordance with the management
requirements, the Company constantly improves and optimizes the top-level design. In the light of the Measures for
the Management of Trademarks and Fonts of the Company ( ), we continuously strengthen the
protection for intellectual properties such as core technologies, trademarks and fonts, proactively investigate the use
of Huaneng fonts, fight against infringement, and prudently decide on the transfer and licensing of core intellectual
property rights, so as to safeguard the legitimate rights and interests of the Company. Meanwhile, the Company further
enhances all-round management of core technical secrets and business secrets, and reinforces competition restrictions
on key talents knowing the Company’s core technology secrets. With respect to intellectual property rights of others,
we, adhering to the principle of full respect and proper use, define the use, methods, prohibited acts and liability for
breach through a license agreement to use such intellectual property rights in a legal and compliant manner. In addition,
the Company establishes and improves the coordination mechanism between intellectual property rights agencies and
Legal Department of the Company so as to better deal with disputes arising from intellectual property rights, enhance risk
control and establish a multi-level intellectual property protection system.

Strengthening the Management of Patent Information

The Company establishes a patent information management system covering the whole process. Starting from the
patent application, we dynamically monitor and maintain the patent information using technological means, and link all
patents to relevant project, realizing full tracking management throughout the life cycle of patent application, authorization,
maintenance, achievement transformation and invalidation.
 Huaneng Power International, Inc.
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TRANSFORMATION DEVELOPMENT DRIVEN BY INNOVATION

05
As a responsible company, Huaneng International
strongly promotes ecological development, vigorously
develops clean energy, continuously optimizes
the industrial strategic plan, actively engages in
technological innovation, strengthens environmental
protection, maximizes energy efficiency, and boosts the
development of the green management system, so as
to promote the green development of the Company.
 Environmental, social and governance report 2022 41

TRANSFORMATION
DEVELOPMENT DRIVEN
BY INNOVATION
 Huaneng Power International, Inc.
42
TRANSFORMATION DEVELOPMENT DRIVEN BY INNOVATION

Transformation Development Driven by Innovation

5.1 Advancing the Energy Revolution
“Innovation, coordination, greenness, openness and sharing” are the five key development concepts of our country.
President Xi Jinping has stated the goal to have CO2 emissions peak before 2030 and achieve carbon neutrality before
2060, and the Chinese government’s response to climate change has been accorded as a major strategy for national
economic and social development. The country vigorously develops a green economy and earnestly promotes various
emissions reduction measures as core climate change policies.

The “14th Five-Year Plan” period is the first five years of a new journey towards building China into a modern socialist
country in an all-round way, the start of a new normal in China’s economic and social development, as well as a crucial
period for developing Huaneng International into a world-class listed power generation company. In the meantime,
Huaneng International redoubled its efforts to promote the development of low-carbon and clean energy by continuously
improving the development quality, and advanced business transformation and upgrading by introducing low-carbon and
clean energy power units. We proactively adapted to the development of the power generating industry to accelerate the
green development.

Optimizing the Energy Structure Constantly

In 2022, moving towards the goal of “carbon peaking and neutrality”, Huaneng International focused on promoting
low-carbon clean energy development, continuously improved the proportion of installed capacity of low-carbon clean
energy, and vigorously facilitated the development and construction of new energy projects such as PV and wind power
generation, achieving a larger increase in the low-carbon clean energy installed capacity.

During the “14th Five-Year Plan” period, the Company has been optimizing the energy structure. In detail, we coordinate
energy security and green development, deepen the supply-side structural reform to thoroughly drive the high-quality
development and accelerate the leap-forward development of new energy, and speed up the optimization and upgrading
of the coal power structure.

Sticking to the goal of carbon peaking and neutrality, the Company promotes the green and low-carbon energy
transformation. Specifically, we adopt renewable energy sources and vigorously develop new energy resources to build a
new power system with new energy as the main body. Moreover, we transform to develop coal power, prioritize gas and
other clean energy power generation, and actively plan pumped storage power generation to achieve an integration of
sources, network, loads and storage and a pattern of multi-energy complementary development.

We focus on developing gas power generation projects in areas with unstable gas sources and gas price, strict
environmental protection requirements, strong bearing capacities for electricity price, and large peak load distribution
demands. In areas with large installed capacity of gas turbine, we tap into the integrated development mode of gas and
electricity by utilizing existing pipeline natural gas, LNG receiving stations and self-built LNG receiving stations, or by way
of cooperative development with upstream gas suppliers. Focusing on combining with the peak load distribution demand
of the receiving end of the clean energy bases and utilizing relevant policies of the State that support the development
of pumped storage, we put efforts to strength cooperation with power grid enterprises in areas with mature ancillary
service markets and peak-valley electricity prices by taking regional companies as the main body and giving full play to the
role of professional companies, forming a business model of mutual benefit, optimally planning pumped storage power
stations, and promoting the development of pumped storage power stations. The Company does well in site protection
and resource reserve while taking a large proportion of shares in Hainan Changjiang Nuclear Power Plant Phase I, Shidao
Bay Nuclear Power Plant and Xiapu Nuclear Power Plant. We pay close attention to the application of other new energy
sources for power generation, and actively seek investment opportunities for project development cooperation, merger
and acquisition of properties of renewable energy power generation. We build biomass power units in combination with
citizen’s heat supply. We develop energy storage industry according to local conditions, combining with the development
of new energy and the requirements of regional peak load distribution. We optimally launch comprehensive energy supply
and service stations such as distributed energy and microgrid.
 Environmental, social and governance report 2022 43

Developing Clean Energy Vigorously

The Company gives priority to quality and benefit and adheres to the principle of “adopting centralization and
decentralization and focusing on self-sustaining development”, and strives to gain resources that match its market
share. The Company continued to focus on green development, vigorously developed new energy and made full use of
the favorable conditions for the centralized development of new energy in the country’s “Three-North”, coastal regions,
southwest and part of the central China, and further built an energy base of “base type, clean type, and complementary
type; intensification, digitalization, and standardization”. The Company developed and constructed offshore wind power
bases in areas such as Guangdong, Jiangsu, Zhejiang, Shandong and Liaoning, and actively planed a new model of
scattered and distributed development throughout counties. The Company optimally developed gas power and other
clean energy power generation, and steadily developed pumped storage power generation to promote the development
of pumped storage power stations by taking into account the peak load distribution demand of the receiving end of
the clean energy bases. Besides, the Company actively implemented major regional strategies of the State, such as
Guangdong-Hong Kong-Macao Greater Bay Area, Yangtze River Delta and Beijing-Tianjin-Hebei, to integrate ourselves
into the new development pattern.

Huaneng Hunan Jiangkou 100,000 kW Wind Power Project

On April 25, 2022, all wind turbines of Huaneng International 100,000 kW Wind Power Project were connected
to the grid for power generation. The Project, located in Xupu County, Huaihua City and Dongkou County,
Shaoyang City, Hunan Province, has 20 wind turbines with installed capacity of 3.6 MW and 7 wind turbines
with 4 MW. Adhering to the philosophy of intensive management, we practiced the new control model “0+1+N”
of new energy in Hunan throughout the process of project design, construction and trial operation, achieving
annual on-grid energy output of over 200 million kWh, equivalently saving standard coal of 62.8 thousand
tons per year and reducing carbon dioxide emission of 188.3 thousand tons. This significantly promotes the
adjustment of local energy mix and the sustainability of economy and society.

Low Res

Huaneng Hunan Jiangkou 100,000 kWh Wind Power Project

 Huaneng Power International, Inc.
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TRANSFORMATION DEVELOPMENT DRIVEN BY INNOVATION

5.2 Pursuing and Accelerating Innovation

Technological innovation drives business development. Huaneng International is committed to becoming an innovation-
driven enterprise by improving technological innovation, adhering to the improvement of technological innovation as the
main line, continuously enhancing our innovation capability, earnestly investing in research and development, optimizing
the systems for innovation decision making and management, and relentlessly developing innovation platforms to
accelerate the development of the Company.

Innovation Management
The Company implements the new development concept in an all-round way. We earnestly implement the decisions
and arrangements of the central government and the SASAC on technological innovation, thoroughly practice the
technological innovation strategy, and vigorously embrace the challenges and opportunities in technological innovation
arising from the “carbon neutrality” and the new round of revolution in the energy industry. In alignment with the
strategy of serving the country and the major demands for the Company’s development, we improve our competence
in independent innovation and significantly raise the industrialized level of technological achievements by adhering to
making breakthroughs in key technologies, focusing on improving innovation systems and mechanisms, and relying on
strengthening the construction of technological talent teams and innovation platforms. In addition, we take the lead in
technological innovation to support and usher in the high-quality development of the Company, while accelerating the
construction of an international first-class listed power generation company to promote the high-quality development of
the domestic energy industry.

In 2022, Huaneng International was committed to serving the national strategies and accelerating innovative development.
We strengthened efforts to tackle key and core technologies in an effort to facilitate the national major strategies. Since
industrial application verification project of burning high alkali coal technology was officially launched, the technology will
push forward the appreciation of wet fly ash and cinder produced by Thermal Power Plant, achieving good economic
effectiveness. We have made breakthrough in R&D of over 10 proprietary technologies such as 700℃ high-temperature
materials and gas turbine. We have completed the test of projects of energy saving through effective peak load distribution
of coal-fired power plant and launched demonstration projects. Our power network security range was recognized as the
national level. In Zhejiang, we have put the first virtual power plant under direct instructions of power grid into operation in
the country. Ruijin Phase-2 and Shidongkou Plant 1 intelligent power plant systems have been launched. With respect to
the development of digital technology and economy information management system, we have completed the Phase-1
development of main functions, established intelligent infrastructure system development team and completed the design
of development program.

In 2022, the Company’s R&D investment increased continuously, and 264 patents, 4,357 utility model patents and 113
international patents were authorized.
 Environmental, social and governance report 2022 45

Innovation Achievements

1 “High Alkali Coal Wet Bottom Boiler Full-Combustion Technology” is appraised to take the leading position in the
world by the Chinese Society for Electrical Engineering.

2 With respect to national major R&D programs, the R&D task of our offshore wind power projects has been
prudently promoted, and application verification wind farms of 5MW and 6MW offshore wind power units have
been installed and connected to the grid.

3 Three proprietary technologies from the automation of gas turbines, that is, the failure analysis and the non-
destructive testing and evaluation for key components of gas turbines, as well as efficiency monitoring and
diagnosis of gas turbines have been included in the Catalogue for the Recommendation on Scientific and
Technological Innovation Achievements of Central Enterprises ( ) and put into
practice.

4 Trial operation of 700 high-temperature materials was launched in Huaneng Ruijin Ultra-Supercritical Power
Plant, taking the first step in practice.

5 Huaneng Ruiwo has completed the Phase-1 R&D of DCS system localization, and put 2 sets into pilot operation in
Yuhuan Power Plant and Fuzhou Power Plant, and applied 17 sets for promotion in Ruijin Power Plant, etc.

6 With respect to network security R&D, we have built the network security simulation and verification environment,
which is accredited as the “national power network security range” by the National Energy Administration.

Development Directions
Huaneng International puts technological innovation in a more prominent position according to the requirements of the
Company’s strategic development. Next, the Company will strengthen efforts to tackle core technologies and accelerate
R&D with a focus on clean combustion, network security, automation of gas turbines, intellectual heat supply and other
fields, so as to further improve the independent innovation capability. We will make overall plan and improvement on key
projects and tasks required for the Company’s production safety, infrastructure, management and development, and
maintain advanced technical and economic indicators in environmental protection, materials, operation and maintenance
and heat supply, forming a high-quality patent system that leads domestic and international markets.

In addition, the Company will also actively promote the integration of technologies, such as carbon capture, fuel cell, AI,
IoT, block chain, cloud computing and big data, with all aspects of the energy industry. With the implementation of the
“Digital Huaneng, Intelligent Huaneng” strategy and the national “carbon peaking and neutrality” strategy, a number of
scientific and technological achievements with significant impact at home and abroad have been made in the field of clean
and highly-efficient power generation technology. The Company will also carry out demonstration projects and focus on
industrial restructuring to enhance core competitiveness.
 Huaneng Power International, Inc.
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TRANSFORMATION DEVELOPMENT DRIVEN BY INNOVATION

5.3 Actively Practicing Low-Carbon Operation

In 2022, embracing the spirit of the annual production conference, the Company carried out the rating work of units in
an all-round way, and promoted the energy-saving upgrading and transformation of coal-fired power, and high-quality
heat supply renovation. These were effectively implemented with the goals of improving major technical and economic
indicators and realizing energy consumption index’s “leading positions in overall energy consumption efficiency”, under
the principles of improving the quality of energy management, focusing on energy consumption index benchmarking and
ensuring key generating units’ outstanding performance. In 2022, the Company did not incur any environmental accident
that was defined as major or above grade.

5.3.1 Overall Planning

Committed to an industry leader in overall energy consumption efficiency and ultra-supercritical unit energy consumption
efficiency, Huaneng International has formulated rules and regulations, such as the Measures for Energy Saving
Management ( ), the Regulations on Environmental Protection Management ( ), the
Standards and Acceptance Measures for Energy Saving and Environmentally Friendly Coal-Fired Power Plants (
), and the Incentive Measures for Achievement of Energy Efficiency Excellence
and Enhancement in (Ultra-) Supercritical Power Units ( () ), and
effectively implemented energy saving and consumption reduction responsibilities. The Company actively promotes coal-
fired power units’ energy saving and emission reduction, plans to carry out energy saving and environmental protection,
and has successfully fulfilled its targets and responsibilities of energy saving and emission reduction to ensure that the
Company’s coal-fired units continuously lead in energy conservation and environmental protection and maintain its
competitive advantage, contribute to the reform of the national energy production and consumption and enhance the
clean and efficient development of coal power generation.

5.3.2 Energy Consumption Management

As an advanced power company, Huaneng International strictly abides by the Environmental Protection Law of the
People’s Republic of China ( ), the Energy Conservation Law of the People’s Republic of
China ( ) and other relevant laws during its development.

The Company mainly consumes coal and natural gas in the power generation process and consumes a certain amount
of oil during the start-up ignition and production combustion process. In 2022, the Company’s coal consumption rate
for thermal power units was 287.69 g/kWh. The house consumption rate of plants was 4.37%. The annual consumption
of standard coal was 127,243.3 thousand tons. Oil consumption in production totaled 39,332.41 tons, while natural gas
consumption was 5,726,164.1 thousand standard cubic meters.
 Environmental, social and governance report 2022 47

Management Objective
Through multiple measures, the Company strives to reduce the coal consumption rate for thermal power units by about
5 g/kWh compared with 2020 and below 286 g/kWh by 2025. To achieve the objective, in 2022, the Company further
tapped the energy saving potential of the thermal power stock, explored the heating market, implemented in-depth
energy saving transformation of some units, and actively carried out maintenance optimization, operation adjustment
and technical supervision of units, so as to contribute to the inhibition of coal consumption growth, reducing the coal
consumption rate by 3.01 g/kWh year on year.

Management Mechanism
The Company’s regional branches are responsible for the energy saving management. In accordance with the Law of
the People’s Republic of China on Conserving Energy ( ), and with the consideration of
actual operations, we have formulated regulations and guidance related to energy saving, such as the Measures for
Energy Saving Management ( ), the Incentive Measures for Achievement of Energy Efficiency Excellence
and Enhancement in (Ultra-) Supercritical Power Units ( () ), the
Standards for Energy Saving and Environmentally Friendly Coal-Fired Power Plants ( ), the
Acceptance Measures for Energy Saving and Environmentally Friendly Coal-Fired Power Plants (
), the Measures for the Selection of Advanced Energy Saving Units ( ) and the
Implementation Plan for the Comprehensive Upgrading and Retrofitting and Energy Saving Replacement of Coal-Fired
Power Plants ( ) and other rules, regulations and work guidelines for energy
conservation.

During the construction period, each project formulates the Overall Planning of Green Construction Project (
) to specify detailed plans for the quantitative control of construction water and electricity indicators, and
establishes the Implementation Plan and Rules of Green Construction Project ( ) and
the Measures for Green Construction, Energy Saving and Emission Reduction ( ), and other
management policies to define specific control measures.

With respect to the energy saving target, the Company maintains its leading position in energy consumption indicators
by vigorously developing heat supply renovation, implementing energy-saving projects and practicing effective energy-
saving management measures. Huaneng International strengthens the budget management of energy consumption
indicators and has formulated special assessment regulations to ensure that each unit can achieve optimal consumption
of coal, electricity, oil, natural gas, etc. The Company adopts an approach that combines goal management and process
management. Firstly, we set the annual energy consumption indicators taking into account specific energy efficiency level
of each basic-level power generation unit and carry out assessment on the degree to which the reference target is met.
Secondly, regarding those units which have difficulty in meeting the target or unsatisfactory energy consumption outcome,
the Company will arrange on-site inspection performed by professionals, who then carry out comprehensive investigations
according to specialties and systems, provide recommendations and take remedial measures to ensure the fulfillment of
target energy saving and emission reduction assigned by the State and the Company, and ensure that the Company’s
coal-fired units maintain the leadership in energy saving.
 Huaneng Power International, Inc.
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TRANSFORMATION DEVELOPMENT DRIVEN BY INNOVATION

Management Measures
In 2022, the Company continued to meet stringent key energy consumption performance targets and focused on energy
saving and consumption reduction measures in three areas, namely management, structure and technology. With the
concerted effort of various units, the Company has maintained its industry-leading position in terms of its achieved key
energy consumption performance targets by various key energy attributes.

On energy saving through management, we improved the three-level energy saving management system, optimized
the three-level energy saving supervision network for basic-level units and introduced energy saving benchmarks into
basic-level units’ performance management. First, we strengthened the management of energy saving targets by
following up with units that were behind the annual energy saving targets and holding dialogue with key units. Second, we
enhanced the implementation and management of energy saving and consumption reduction responsibilities by urging a
breakdown of the responsibilities of all personnel in regional branches and basic-level thermal power plants by job nature
for looking after energy saving-related tech-economic indicators, made everyone assume energy saving and consumption
reduction indicators to raise energy saving awareness. Third, we enhanced benchmark checking for power units of the
same type to identify discrepancies against management, technology, safety, fuel and market benchmarks and improve
energy saving management. Fourth, we initiated the selection of advanced energy saving units and benchmark power
plants, promotion of the review and verification of energy saving and environmental protection excellence power plants,
and a reward system for energy saving excellence and enhancement with incentive funds, and evaluation as well as
encouragement of pioneering and improvement of energy consumption indicators.

On energy saving through structure, first, we organized power plants to explore their heat supply potential and tap into
a wider heat supply market according to local conditions. Second, we urged regional branches to optimize their operating
capacity through electricity transfers and enabled low energy consumption power units to absorb the additional power
generation capacity. Third, we suggested that basic-level units modulate energy saving economics to increase the output
coefficient of their power units where policies allow. Fourth, we stepped up fuel procurement work and management of
blended coal as fired to ensure that the heating value of coal as fired is consistent across all power plants and that the
heating value of coal as fired remained at a high level for ultra-supercritical power units.
 Environmental, social and governance report 2022 49

On energy saving through technology, we focused on promoting the transformation of existing power units for
thermoelectric power cogeneration, facilitating the clean and efficient utilization of coal with a further testament to energy
utilization enhancement. In 2022, the Company’s overall energy saving indicator and the energy consumption indicators
of seven key models (e.g., 1,000 MW ultra-supercritical wet cooling, 600 MW ultra-supercritical wet cooling, 600 MW
supercritical wet cooling, 600 MW supercritical air cooling, 600 MW sub-critical wet cooling, 350 MW standard wet
cooling and 300 MW standard wet cooling) maintained a leading position in the industry. In 2022, The Company’s 24
wind farms achieved excellent performance in wind power operation efficiency of power industry in 2021.

In terms of engineering construction, the Company formulated reasonable construction energy consumption
indicators to improve construction energy utilization. Based on the principle of energy conservation, each infrastructure
project carefully calculated the power load and load usage time, rationally designed temporary office and living facilities in
accordance with the natural conditions of the site, and selected the construction transformers with reasonable capacity
and optimized the layout location of construction transformers. The power devices for construction were fully equipped
with electricity meters and hierarchical management was adopted in calculating power consumption. The Company
set power consumption control indicators, regularly performed calculating, accounting, and comparative analysis, and
formulated preventive and corrective measures to reduce construction power consumption. The Company gave priority
to the use of energy-saving, efficient, and environmentally friendly construction equipment and machinery, preferred to
use energy-saving construction process, rationally reduced the time for night work through reasonable arrangement
of construction procedures and progress with sharing of construction machinery, and carried out construction and
commissioning in a refined manner to strive for the success of each trial operation and test with consideration of trial
operation condition of power units at all stages. During the construction period of each project, the power and fuel
consumption were kept under control.

In 2022, the Company made steady progress with positive momentum in its production and environmental protection.
In terms of equipment management, reliability was improved year by year and outperformed industry peers, and the
unplanned outage times of generating units decreased year by year. In terms of energy saving and consumption
reduction, the coal consumption for power supply decreased year-on-year, and the energy efficiency of thermal power
units remained industry-leading for many years. The Company paid close attention to optimizing the energy consumption
and achieving the environmental protection targets, and stepped on a new journey of high-efficiency and low-carbon
development. The Company strived for excellence of energy consumption indicators, guided and assisted backward
power units, and conducted the applications of advanced energy-saving technologies such as wide-load high-efficiency
power generation and generalized regeneration in a targeted manner. The leading advantage of key models was
continuously consolidated. In addition, the Company consistently drove the green and low-carbon development.

In the future, the Company will continue to promote the transformation of existing power units for thermoelectric power
cogeneration technology, implement energy-saving technical retrofits of existing power units and deepen the application
of generator unit ratings to facilitate management improvement.
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Huaneng Beijing Thermal Power Plant Launched Flue Gas Waste

Heat Utilization Project of Gas Turbines
Huaneng Beijing Thermal Power Plant has launched the flue gas waste heat utilization project of gas turbines, which
firstly adopted the waste heat recovery technology of “flue gas – water plate heat exchanger + lithium bromide
absorption heat pump unit” with the largest waste heat recovery capacity in the country.

The implementation of the project will further improve the regional heat supply network and enhance the heat supply
capacity by transferring excessive heat produced by the thermal power plant to the heat supply pipe network of sub-
city center in an effort to meet the demand of the eastern extension line of Guangqu Road and the sub-city center
for heat previously supplied by scattered small boiler rooms. This could realize differentiated energy utilization, better
heat supply and less peripheral pollutant emission so as to achieve energy saving and emission reduction. The newly
built flue gas waste heat recovery equipment can supply heat to area of over 5 million square meters, saving natural
gas of over 67 million cubic meters and reducing carbon dioxide emission of 130 thousand tons and nitrogen dioxide
emission of 16.8 tons per year.

Beijing Thermal Power Plant

Huaneng Qinbei Power Plant #5 Million-kW Unit Flow Renovation Project

was Put into Commercial Operation
In December 2022, #5 million-kW unit flow renovation project of
Huaneng Qinbei Power Generation Co., Ltd. was successfully put
into commercial operation after passing through relevant tests.
The renovation project uses advanced technology to increase
flow efficiency, reduce steam intake loss, and improve the unit’s
adaptation to load change, operating safety, economic efficiency
and flexibility. The economic indicators of the unit take a leading
position among units with same capacity in the country, and play an
important role in reducing power generation cost, saving energy and
promoting sustainable development of local economy.

Qinbei Power Plant #5 Million-kW Unit

 Environmental, social and governance report 2022 51

5.3.3 Water Resources Management

The Company strictly follows the government’s requirements for the protection of fresh water, we will comprehensively
promote the comprehensive treatment of water-saving wastewater from thermal power plants and issued the Guiding
Opinions for Thermal Power Plant’s Water Saving and Wastewater Treatment (
) to guide and push forward the plant-wide water saving and comprehensive wastewater treatment work. The main
water consumption of Huaneng International is for generating electricity with power units, replenishing water for closed
circulating water, and wet desulphurization, etc. Surface water, urban water, and a small amount of groundwater, etc. are
used for generating power, and river water or sea water is used for circulating. In 2022, the overall water consumption
of the Company was 17,696.70 million tons, the freshwater consumption for power generation was 380.43 million tons,
the open cooling circulation water consumption was 17,316.27 million tons, and the performance value of freshwater
consumption for power generation was 0.84 kg/kWh.

Management Objective
By 2025, the Company is committed to devoting greater effort in the transformation of water conservation for the purpose
of zero discharge of wastewater. To achieve the objective, the Company strengthened efforts in the transformation of
energy conservation, and approved and launched water saving transformation projects related to the transformation
project of recycled water fed from Lanjia Wastewater Treatment Plant to Changchun Thermal Power Plant in 2022.

Management Mechanism
In accordance with the Company’s management systems for technical supervision, maintenance, technical transformation
and energy conservation, the various thermal power plants have established a set of water consumption management
systems and procedures, which include:

1 A water management system has been established and managed by professional personnel, who shall formulate
rules for water usage, instruments maintenance and management. All water usage sectors and professionals
conduct regular maintenance and calibration for water metering, water quality testing instruments and water-usage
equipment, etc., so as to eliminate unreasonable water usage.

2 An account management system has been constructed, including the whole plant account and drainage account,
water quality monitoring, water metering instrument basic information table, equipment installation location and
parameter table, records of instrument test, calibration and maintenance, etc. They also regularly calculate the
water management index of the whole plant, and the water usage account is based on the actual monitoring data.

3 The thermal power plants also comprehensively utilized various wastewater of the plant area and reduced
discharge rate, according to the principles of shunting sewage and clean water, classification and recovery, and
disposal and reuse.
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Management Measures
In 2022, Huaneng International launched the water saving and wastewater treatment work plan in its power plants. As
at the date of the report, all its subordinate power plants actively enforced the water saving and wastewater treatment
measures. Upon the treatment, the freshwater consumption for power generation has met the criteria set out in the
Standards for Energy Saving and Environmentally Friendly Coal-Fired Power Plants of the Company (
), with wastewater discharge meeting the requirements set out in the waste discharge permits and local
environmental regulations.

In 2022, the Company faced no imminent threats in terms of tapping water resources. To address the water shortage
risk, the Company adopted a precise management approach for water supply and consumption based on the Guiding
Opinion for Thermal Power Plant’s Water Saving and Wastewater Treatment (
) to refine the criteria for recycle of water and classification of use of water and reduce the fresh water consumption.
Currently, Weihai Power Plant’s seawater desalination project has been put into operation. The projects of water saving
and wastewater treatment of all plants in key areas such as Beijing-Tianjin-Hebei and neighboring “2+26” cities, Yangtze
River Delta and Fen-Wei Plain are advanced in an orderly manner.

During the construction period, the Company’s infrastructure projects respectively determined domestic water and
construction water quota indicators based on the characteristics of projects and on-site construction conditions,
and conducted calculation and assessment management separately. When a service contract was signed with the
construction unit, the water conservation quota indicators were included in the contract terms for calculation and
assessment. In the design stage, the supply and drainage systems of the office and living areas at the construction site
shall be reasonably arranged, and a water-saving system shall be applied for domestic water with obvious water-saving
marks set at the water source location. In addition, on-site construction organization shall be strengthened for each
project, and the on-site water supply pipe network shall be simple, reasonable, and leak-free through design analysis and
rational arrangement at the construction site, a reusable water collection and treatment system shall be established at the
construction site to make water resources available for cascade recycling, rainwater collection tanks shall be set up to
recover rainwater, which will be used for road spraying, vehicle washing and greening after treatment, domestic sewage
treatment stations shall be designed, constructed and put into use in advance, and all the domestic sewage in the
construction area will be treated by the sewage treatment stations, and the treated water shall be reused for secondary
recycling applications such as vegetation greening, road spraying, etc. The Company’s water resource consumption
during the construction of various projects shall be kept within the scope of management objectives.

5.3.4 Emissions Management

The Company abides by laws and regulations such as the Environmental Protection Law of the People’s Republic
of China ( ), the Law of the People’s Republic of China on Prevention and Control of
Environmental Pollution Caused by Solid Wastes ( ), Atmospheric Pollution
Prevention and Control Law of the People’s Republic of China ( ) and the Law of the
People’s Republic of China on Prevention and Control of Pollution from Environmental Noise (
), and in accordance with the national policies on environmental protection and policy documents regarding
ecological environment and energy conservation and emission reduction and the requirements of relevant authorities,
the Company has put forward the plan to become a first-class enterprise for environmental protection based on the aim
to build a world-class listed power generation company and in consideration of its actual situation. In addition, the ultra-
low emission transformation, water saving and wastewater treatment, and comprehensive utilization of solid waste are
fully deployed. The Company attaches great importance to the discharge management of pollutants. All thermal power
units are required to install desulphurization, denitration and dust removal devices and wastewater treatment and other
environmental protection facilities. We strengthen the operation, maintenance and repair of environmental protection
facilities, and strictly abide by the requirements of sewage permits, and the discharge of pollutants meets national
standards and territorial requirements.
 Environmental, social and governance report 2022 53

During the construction period, the construction unit and each participating unit established a green construction
management system, and formulated management systems such as the Overall Planning of Green Construction Project,
the Implementation Plan and Detailed Rules of Green Construction Project and the Measures for Green Construction
and Energy Saving and Emission Reduction, which were independently defined in the general design of the engineering
construction organization with detailed regulations on green construction and environmental protection. The quantitative
control targets for controlling emissions during the green construction process were clarified with specific pollution
control measures. The Company’s construction projects strictly implemented the requirements of “Three Simultaneity”11
for environmental protection, in accordance with various environmental protection work and environmental protection
measures recommended by the environmental impact assessment approval. In addition, we strengthened the stable
operation of environmental protection facilities, ensured the emission of pollutants met the standards, and entrusted an
environmental protection supervisor to supervise, inspect and guide the implementation.

5.3.4.1 Exhaust Gas Management

The exhaust gas discharged by Huaneng International is mainly carbon dioxide, sulphur dioxide, nitrogen oxides and
soot generated from its subordinate power plants during the process of combustion in the coal-fired unit boiler. The
Company’s emissions of sulphur dioxide, nitrogen oxides and soot were 26,509.41 tons, 55,303.98 tons and 3,503.33
tons respectively, with emission performance values of 0.06 g/kWh, 0.13 g/kWh and 0.01 g/kWh respectively.

Management Objective
In 2021, the Company’s goal was to enclose all major coal fields of 19 coal-fired power plants in Beijing-Tianjin-Hebei and
neighboring “2+26” cities, strictly implement the local environmental protection and non-organized emission requirements,
and it was expected that the Company’s ultra-low emission unit capacity would reach 100% by 2022. To achieve
the objective, the Company enclosed all major coal fields of 19 coal-fired power plants in Beijing-Tianjin-Hebei and
neighboring “2+26” cities, achieving 100% ultra-low emission unit capacity in 2022.

Now that the above targets have been achieved, we have updated the target for the next stage to complete the coal
field closure retrofits in key areas such as the Yangtze River Delta and Fen-Wei Plain by the mid-term of the 14th Five-
Year Plan, strictly enforce the local authority’s requirements of fugitive emissions and ensure that there is no major
environmental protection safety accident during the “14th Five-Year Plan” period.

11
Three Simultaneity: Simultaneous design, simultaneous construction, simultaneous use.
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Management Mechanism
The Company formulated the Regulations on Environmental Protection Management ( ), Measures
for Evaluation and Accountability for Environmental Protection Work ( ), Operation
Management Rules ( ), Overhaul Management Rules ( ), Technical Supervision
Management Measures ( ) and Management Measures for Capital Expenditure in Electricity
Generation ( ) to ensure the progress on the work related to ecological environment
protection and air pollution prevention and control projects.

The Company made full use of its internal information platform to grasp the situation of excessive emission, focused on
the analysis of events with long duration, seriously excessive emissions and typical causes, and guided all units to learn
from one another and take active measures to improve the Company’s overall environmental protection management
capability. In addition, giving consideration to the promotion of annual key tasks, major projects, air quality assurance
tasks, etc., the Company launched environmental protection inspections irregularly to ensure active and effective
rectification of the environmental risk.

Management Measures
To enhance waste gas management, the Company has taken the following measures:

1 Enhancing the supervision and implementation of work tasks. The Company has enhanced the review
management of environmental protection renovation projects, optimized review procedures, secured renovation
investment, strengthen supervision and management of key processes such as bidding process and inspect and
supervise key work tasks to carry forward the pollution prevention and control tasks.

2 Ensuring effective clean production. The Company has continuously maintained the safe and reliable operation of
environmental protection facilities, strengthened real-time monitoring of pollutant discharge, ensured discharge
compliance, and effectively controlled pollutant discharge in accordance with requirements set out in the pollutant
discharge permit to secure a leading position in terms of pollutant discharge in the industry.

3 Successfully completed the air quality assurance tasks. The Company has ensured good air quality during key
hours and weathers with serious pollution, ensured effective pollution prevention and control in key regions such as
Beijing-Tianjin-Hebei and neighboring region, Yangtze River Delta and Fen-Wei Plain, and fully adopted measures
such as load reduction of diesel trucks, non-peak-hour transportation and control of fugitive emissions to fulfil the
Company’s social responsibilities.

4 In accordance with the “Four Conservations and Environmental Protection”12 standard, the Company made
specific optimization of the corresponding requirements of green construction in the design process. Emission
of hazardous gases from machinery and equipment and vehicles entering and leaving the site has met the
requirements of national annual inspection, and the emission of welding fume shall comply with the Integrated
Emission Standard of Air Pollutants ( ). The project environment shall be assessed and
a report shall be issued on a monthly basis. A continuous emission monitoring system (CEMS) was installed at
the site to monitor the soot of flue gas pollutants, sulphur dioxide and nitrogen oxides in real time. There was no
excessive emission of hazardous gases during the construction of each infrastructure project.

12
“Four Conservations and Environmental Protection” refers to energy conservation, land conservation, water conservation,
material conservation and environmental protection.
 Environmental, social and governance report 2022 55

Work Achievements
With careful maintenance of the desulphurization and denitration equipment and facilities of coal-fired units, the Company
has maintained a stable standard emission, and completed the flue gas ultra-clean renovation of all the coal-fired units.

Coal Field Closure and Retrofits Project in Huaneng Yueyang Power

Plant All Completed
On December 9, 2022, the coal field closure and retrofits project
in Yueyang Power Plant was all completed. The project officially
commenced on November 9, 2021 to retrofit 8 coal fields of
Yueyang Power Plant in total across Phase I, Phase II and Phase
III, with a total area of approximately 33,000 square meters and a
structure in the form of 5 separate arch-shaped steel frame coal
sheds.

Acting upon the policy of “jointly promoting environmental

protection, and not engaging in large-scale development” in the
Yangtze River economic belt, and responding to the national,
provincial and municipal governments’ call to improve ecology Coal Field Closure and
Retrofits Project in Yueyang Power Plant
of the Yangtze River shoreline and make it the most beautiful
shoreline, we launched the coal field closure and retrofits project,
which also marks an important milestone in the roadmap to a
digital and green coal field at the power plant.

Future Plan
First, the Company will continue to drive its pollution prevention and control efforts, focus on environmental protection
transformation projects in key regions, including close-down of coal field, wastewater treatment, and ash field treatment
for power plants, while expediting pollution prevention and control projects such as ultra-low emission renovation for clean
energy heating units in the northern region.

Second, the Company will continuously promote clean production practices, enhance permit-based waste discharge
management, ensure effective management and control for air quality in key hours and weathers with serious pollution,
strengthen the inspection management for environmental protection supervision at different level and improve the
prevention and response for public opinion risk related to environmental protection.

Third, the Company will maintain vigorous environmental protection supervision and management, strictly comply with
the requirements set out in the Environmental Protection and Pollution Control Accountability Measures (
), strengthen supervision and site inspection to ensure effective supervision and
management of the implementation of air pollution prevention and control tasks.

Fourth, the Company will establish a sound environmental protection standard system, promote the research and
development and application of technologies such as integrative removal of pollutants and comprehensive energy saving
and environmental protection transformation, and summarize experience from demonstrative projects to provide guidance
to other projects.
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5.3.4.2 Management of Greenhouse Gas

In 2020, China made a solemn commitment to reach “peak carbon dioxide emissions” by 2030 and achieve “carbon
neutrality” by 2060. During the “14th Five-Year Plan” period, the Company will promote the green transformation and
increase the use of clean energy. In specific, great efforts will be made to strengthen the transformation of environmental
protection equipment of coal-fired units, and to reduce energy consumption and carbon emission through management,
structure and technology optimization, thereby succeeding in lowering total carbon emission and carbon intensity.

By staying up on relevant national policies regarding carbon emission and trade, the Company actively participates in
the construction of the national carbon market, and issues regulations on the administration of carbon trading, which
specifies the carbon trading management institutions and responsibilities, along with the requirements of carbon trading
preparation, transactions and contract performance and risk management. As part of our efforts to “peak carbon dioxide
emissions” and achieve “carbon neutrality”, we take part in carbon trading via the national carbon market in a steady and
orderly manner, so as to fulfil our obligations concerning carbon emission.

On March 15, 2023, the Ministry of Ecology and Environment of the People’s Republic of China issued the Notice of
Implementation of Relevant Work on Distribution of National Carbon Emission Rights Trading Quota for 2021 and 2022
2021
( 2022 (2023 1)) . According to the Plan,
the performance unit shall settle its quota payment for the second compliance cycle (2021-2022) by the end of 2023.
Therefore, the Company’s data relating to actual greenhouse gas emissions in 2021 and 2022 are considered as trade
secrets and will not be disclosed, until the contract performance is all completed.

Carbon Reduction Goals

The Company will make efforts on structural adjustment and energy saving and consumption reduction, so as to achieve
peak carbon emission as soon as possible. In 2022, the Company’s carbon intensity from all emission sources against
this goal decreased by 1.4% year-on-year.

Carbon Asset Management

The Company carried out the following work:

1 The Company actively participated in the construction of the national carbon trade market, and delved into key
management rules for the carbon market, including regulations on the administration of carbon trading, quota
allocation plan, and accounting methods for carbon emission.

2 The Company issued regulations on the administration of carbon trading, specifying the management institutions
and their responsibilities, along with various requirements of transactions and contract performance and
risk management. According to the regulations, the Company put greater emphasis on the centralized and
professional management of carbon trading. Professional institutions were therefore engaged to provide one-on-
one professional services for the grassroots enterprises, and carbon trading-based business training was also
held, so as to continuously improve management capability on the carbon trading, thus aligning its management
model with the national carbon market.

3 The Company advocated refined management of carbon trading and dynamic calculation on quota surplus and
deficit of grassroots enterprises, made the annual trading work arrangement, and carried out some transactions
in advance to reduce the performance pressure arising from the carbon trading at the end of the performance
period. Besides, the contract performance tasks in Beijing pilot carbon market were successfully completed with
the targets met.
 Environmental, social and governance report 2022 57

Contract Performance in the Pilot Carbon Market

In accordance with the national and pilot carbon market work arrangements, Beijing Thermal Power Plant coal-fired
units, the only one that needed to complete the contract performance tasks in Beijing pilot carbon market, appointed
Huaneng Carbon Asset Management Co. Ltd to conduct carbon emission accounting and carbon emission trading, and
successfully met the annual contract performance targets of carbon trading as required by local competent authorities of
carbon trading.

Participation in National Carbon Emission Trading Market

The national carbon emission trading market was officially launched in 2021. In accordance with the relevant requirements,
the Company excluding several units participated in carbon trading via the national carbon market and successfully
completed the performance task for the first compliance cycle (2019-2020). The Company’s units stayed ahead in the
industry in terms of the overall energy consumption, and there was some surplus of carbon quota after the completion of the
performance task. On March 15, 2023, the Ministry of Ecology and Environment of the People’s Republic of China issued
the Notice of Implementation of Relevant Work on Distribution of National Carbon Emission Rights Trading Quota for 2021
and 2022 2( 021 2022 (2023 1 )). According to
the Plan, the carbon emission baseline will be lowered, and quota issuance will be significantly tightened, the Company will
complete the two-year performance task of carbon trading by the end of 2023, with an increase in the performance cost.

The Demonstration Project for Online Monitoring of

Carbon Emission in Huaneng Haimen Power Plant Completed

On December 31, 2022, the demonstration project for

continuous online monitoring of carbon emission of Haimen
Power Plant unit 3 and unit 4 was successfully put into
operation. This project was aimed to provide technology
support in analyzing carbon emission data in 2022 of the
China Huaneng Group Co., Ltd. (“Huaneng Group” or
“Group Company”). Facing challenges such as the shortage
of equipment and materials, and difficulty of construction
inside the chimney, Haimen Power Plant boasted the
advanced technologies of the industry including dual-channel
concentration sampling detection, plug-in ultrasonic gas flow
measurement, and average-line multi-point flow measurement
Haimen Power Plant
to complete the demonstration project with high quality and
efficiency and thus bring huge improvement to the accuracy
and reliability of carbon emission measurement. All these
efforts lay a solid foundation for the thermal power plants to
conduct follow-up research of carbon emission monitoring,
and serve as data basis for building strategic targets and
roadmap towards carbon reduction.

Future Plan
Keeping an eye on the carbon emission data verification and quota allocation policy, the Company will conduct a dynamic
calculation on quota surplus and deficit, and arrange a calculation on operational indicators in advance. Besides, the
performance strategies of carbon trading will be optimized, eyeing the opportunities for the coordinated trading of quotas
and products with environmental rights and interests. In doing so, the Company strives to reduce performance costs
while ensuring the completion of performance tasks.
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5.3.4.3 Wastewater Management

The Company, with coal-fired power generation as its main business, generates a certain amount of wastewater in the
process of electricity production, including those from the concentration of steam turbine circulating cooling water, the
wet desulphurization facilities, the auxiliary production facilities of the generator set, the coal field flush as well as sanitary
sewage.

In 2022, the total water discharge of the Company amounted to 15,434.81 million tons, the discharge of open
cooling circulation water totaled 15,409.43 million tons, and the total discharge of sewage (including industrial and
desulphurization wastewater) was 25.38 million tons. Some of the wastewater was allowed to be discharged when they
reached a certain standard after treatment, e.g., wastewater from circulating water; some was reused after treatment and
cannot be discharged, e.g., those from desulphurization facilities and coal field flush; and zero discharge is required for
certain power plants which were not allowed to discharge any wastewater.

The Company adopted the following measures in the management of wastewater treatment and discharge:

1 The Company rigorously implemented the applicable water pollution prevention and control policies and sewage
discharge licensing requirements. All thermal power plants of the Company obtained the corresponding sewage
discharge licenses as scheduled.

2 Inspection and rectification were carried out against the sewage discharge licensing requirements. A
comprehensive pollution prevention and control plan at the company level was formulated based on environmental
protection requirements at various levels, and power plant water saving, and wastewater treatment transformation
projects were launched in an orderly manner in accordance with the requirements of local governments and
environmental assessment.

3 The Company performed on-site checks and inspections of environmental protection facilities, including
wastewater treatment units.

4 The Company built a sound standard system for environmental protection, formulated guiding opinions on
water saving and wastewater discharge transformation to ensure the compliance with environmental protection
requirements through research and optimization.

5 The Company actively adopted the latest wastewater treatment technology and launched wastewater
transformation demonstrative projects.

Future Plan
The Company will continue to strengthen water pollution control and promote the enhanced treatment and comprehensive
utilization of industrial wastewater and domestic sewage, as well as launch wastewater zero discharge transformation
projects in an orderly manner in areas where specific environmental protection requirements apply.

With the gradual deepening of wastewater treatment work as well as the increased wastewater treatment technology
research efforts by domestic tertiary institute, Xi’an Thermal Power Research Institute Co., Ltd. (“Xi’an Thermal”) and
Huaneng Clean Energy Research Institute, we will formulate a roadmap for developing practical, reliable and cost-
effective wastewater treatment technology. We will gradually carry out thermal power plant water saving and wastewater
comprehensive treatment transformation in key areas in order to eventually enable all thermal power plants to comply with
the updated pollutant discharge licensing requirements, with some reaching even higher standards.
 Environmental, social and governance report 2022 59

5.3.4.4 Waste Management

The Company’s disposal of wastes strictly complies with laws and regulations such as the Law of the People’s Republic
of China on Prevention and Control of Environment Pollution Caused by Solid Wastes (
) as well as the Company’s regulations including the Regulations on Environmental Protection Management
( ), the Measures for Evaluation and Accountability for Environmental Protection Work (
), the Management Standards for Solid Waste( ), the Governance
and Management Standards for Desulphurization By-products ( ), the Governance and
Management Standards for Fly Ash ( ), etc. The Company requires that the storage, discharge, and
disposal of waste comply with national laws and local policies. We also cooperate with qualified third parties to deal with
waste and strengthen waste recycling to minimize waste emissions.

Management Objective
In accordance with the Law of the People’s Republic of China on Prevention and Control of Environment Pollution Caused
by Solid Wastes ( ) and the principles of “reduction, recycling, harmlessness”
in the prevention and control of solid waste pollution, the Company actively promotes the compliant and comprehensive
utilization of solid waste and insists on source management with whole-process responsibility system and traceable
information management in place. The hazardous waste management plan is filed in accordance with regulations with
such waste stored, transported and disposed of as required. The comprehensive ecological protection treatment and
transformation for ash disposal area, which is expected to be completed by 2025, is being proceeded in an orderly way
by the Company. In 2022, the reconstruction of the drainage facilities for ash disposal area of Zuoquan Power Plant was
completed, and the capacity expansion project for ash disposal area of Yichun Thermal Power Plant is still ongoing.

Non-Hazardous Waste
Huaneng International’s production activities are mainly concentrated in the area of power production and the main
solid waste generated during the Company’s power generation process includes fly ash and cinder produced during the
combustion process of the boiler, and gypsum produced during the limestone wet desulphurization in power plants. In
2022, the Company produced 43.4280 million tons of solid waste, including 33.0373 million tons of fly ash and cinder,
and 10.3907 million tons of desulphurized gypsum. The comprehensive utilization rate of fly ash and cinder stood at
96.96% and the desulphurization gypsum disposal utilization rate was 85.31%.

Fly ash and cinder, desulphurization gypsum and other solid waste can be sold as raw materials in related industries,
such as cement, concrete, aerated blocks and gypsum board. The Company has established an environmental
protection supervision and management system in accordance with the requirements of national and local standards and
policies on environmental protection to effectively control the canning, stacking and marketing of fly ash and cinder and
desulphurization gypsum.

When loading fly ash and cinder and gypsum, the Company rigorously follows the operational norm for load control,
separates the fly ash and cinder from gypsum and controls the load capacity during transportation and conducts thorough
check and cleaning before vehicle entry to prevent “escaping, spilling over, dripping and leakage” of solid wastes.
Most of the fly ash and cinder and gypsum collected from boilers will be directly transported to the processing plants
for secondary use. The Company closely monitors where the by-products of power generation are being transported
and how they are going to be used to prevent environmental pollution and public issues that have a negative impact on
society.
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Some fly ash and cinder in the power plants will be temporarily stored in the ash field, and the Company strengthens
supervision and management of the ash field. In accordance with the requirements of local environmental protection
authorities, construction and retrofitting of wind-proof and dust control facilities have been carried out to ensure that the
storage of ash and gypsum is in line with local environmental protection standards.

In the construction project, the generation of waste is effectively reduced at the project site through relevant measures
such as permanent and temporary combination of roads and office locations. The project waste is collected by
classification, stored in a centralized way and cleaned up regularly, and corresponding units are entrusted to clear and
transport it regularly. The gravel and earthwork construction waste from the project is used as the on-site roadbed backfill
material to realize harmless treatment.

The Commissioning of “Municipal Waste Pre-Treatment System”

Successfully Completed
In 2022, the commissioning of “municipal waste pre-treatment
system”, independently developed by Xi’an Thermal, was
successfully completed in Huaneng Taicang Power Plant,
with expected sludge and wastewater treatment results and
a far lower treatment cost than that under the conventional
operation. The system, which can be used to not only
incinerate waste, but also treat wastewater, sludge and other
different forms of waste, without generating waste leachate
and even dioxins, is expected to play a key role in the
recycling and reduction of urban waste.

Taicang Power Plant

Sludge Pre-Drying Carbonization Technology of Huaneng Fuzhou Power Plant

Huaneng Fuzhou Power Plant launched a new upgraded
sludge treatment technology – sludge pre-drying carbonization
treatment technology in February 2022. The project contains
sludge drying system and in-plant supporting system, which
can directly feed thermal dried and pulverized urban domestic
sludge into the boiler for combustion and power generation,
with totally enclosed and harmless treatment of generated
pollutants thereof including flue gas and wastewater.

Totally enclosed technology, integration, negative pressure

and other advanced technologies were applied to improve
The Sludge Pre-Drying Carbonization
the sludge treatment efficiency, so as to realize the harmless, Technology of Fuzhou Power Plant
reduced, scale-based and resource-based treatment, with
certain economic benefits gained. The maximum capacity
for daily sludge treatment will increase to 300 tons upon
the operation of the project. In consideration of the annual
operation of 6,400 hours of the machine, the annual capacity
for sludge treatment is about 80,000 tons. Based on this and
65.60kg of coal saved by drying each ton of wet sludge, 5,248
tons of coal will be saved and 19 million kilowatt-hours of
additional electricity will be generated.
 Environmental, social and governance report 2022 61

Hazardous Waste
The main hazardous waste produced by the Company during the process of power generation includes such hazardous
solid waste as used denitration catalysts and ion exchange resin deactivated in wastewater treatment, as well as
hazardous liquid waste like waste oil produced during the operation of power plant units. The Company regenerates the
denitration catalysts which have reached their life limit and continues to charge them into denitration devices for use.
Inactivated ion-exchange resin from chemical water treatment can be restored to its original state for reuse after being
rinsed with mineral acids or alkalis of a certain concentration. The Company will, based on relevant requirements, hire
qualified recycling agencies to deal with denitration catalysts that could not be renewable anymore, ion exchange resins
that cannot be reused and hazardous liquid waste such as lubricant and other waste oil during operations. Besides,
through managing the accounts, we will detail statistics on the amount of waste generated, the amount of disposal, and
the audit of the qualifications of disposal units, etc., and strictly manage the generation and disposal of waste. In 2022,
the Company, in the process of production and operation, generated 7,937.36 tons of denitration catalysts, 436.09 tons
of ion exchange resin and other hazardous solid waste and 973.94 tons of waste oil and other hazardous liquid waste.

Future Plan
The Company will continue to strengthen waste recycling and strive to minimize waste emissions. In addition, the
Company will well implement environmental protection transformation projects in key regions, including close-down of
coal field and treatment of ash field for power plants.

5.3.5 Other Environmental Impacts

Huaneng International always handles its operations with great care to minimize their impact on the environment, and
performs strict management of noise, dust and the environmental impacts of engineering projects in accordance with the
Law of the People’s Republic of China on Prevention and Control of Pollution from Environmental Noise (
).

5.3.5.1 Noise Management

During the initial stage of the construction of power plants subordinated to the Company, relevant departments of
environmental protection determined the sensitive points of noise along the boundaries of the power plants and their
relevant noise control level in accordance with the requirements in the environmental impact assessment approval. Each
construction site formulated noise reduction measures in strict accordance with the requirements of the state’s Emission
Standard of Environment Noise for Boundary of Construction Site ( ) and performed
regular inspection and recording of noise at the construction sites. Noise control during the construction period was
mainly to control the noise source. Quiet construction machinery and transportation vehicles were used for each project,
and the repair, maintenance and management of equipment, construction machinery and transportation vehicles were
enhanced to avoid noise due to malfunctioning. Noise reduction and sound insulation measures have been adopted for
major noise sources such as construction machinery and equipment, pipe flushing, sandblasting, and spraying operation.
The equipment with substantial noise generation on the construction site was placed on the side further away from the
residential area, and these equipment was treated by noise reduction measures such as encasing or setting up noise
reduction walls. Steam pipe blowing operations were announced in advance. The noise control during the construction
of each project met the national standards. For the environmental completion and acceptance of the power units in all
power plants, the monitoring authorities will conduct investigate the site based on the requirements in the environmental
impact assessment approval, and only when the monitoring results are qualified will the acceptance concerning noise
control pass. During the operation of power units, the power plants commissioned relevant monitoring authorities to
investigate the noise control regularly in accordance with the requirements of the environmental protection authorities and
published the monitoring reports through multiple ways. The power plants installed acoustic enclosures for major noise
sources such as fans and other equipment in the plant and built noise walls for key areas such as the cooling water tower
area. When excessive noise happens during events like power units renovation or equipment failures, the Company will
implement noise control for equipment that generates excessive noise accordingly.

In 2022, the Company increased its attention to noise management and published Design Guidelines for Managing Noise
of Gas Turbines ( ). The technical standards could effectively guide the power plants to improve
noise control post-construction and post-renovation.
 Huaneng Power International, Inc.
62
TRANSFORMATION DEVELOPMENT DRIVEN BY INNOVATION

5.3.5.2 Dust Impact

Coal field dust, ash field dust and unorganized emissions from non-road machinery are also environmental impacts
caused by power plants. All power plants owned by the Company are required to obtain the environmental impact
assessment approval by the relevant environmental protection departments during their initial stage of construction to
avoid severe impact on the surrounding environment and natural resources during operations. The power plants strictly
abide by national environmental emission standards during operations and discharge wastes according to the standards.
When the requirements of surrounding environment change, the affected power plants actively respond to ensure that the
surrounding environment and natural resources are protected. To enhance the management of unorganized emissions
from coal yards, the Company has carried out segregated coal field retrofits for key areas and for other areas, the
Company introduced wind and dust suppression nets, covers and sprays to effectively control coal dust pollution from
coal fields and improve the surrounding environments. In terms of engineering construction, all participating units have
carried out construction in strict accordance with the green construction plan and organizational measures, and suppressed
the generation of dust by taking measures such as regular spraying and construction road pavement hardening.

5.3.5.3 Environmental Impact of Engineering Projects

The environmental impacts of the Company’s projects are fully comprehended during feasibility study before the projects
enter the approval or filing stage. Following national policies and requirements on environmental protection and the
land use planning by the government, the Company avoid choosing location in or near the ecological red lines such as
nature reserves or agricultural land to prevent the consequent ecological problems. After the site selection, the Company
conducts a systematic survey of the surrounding environment during the feasibility study stage and prepares a detailed
environmental management and monitoring plan based on actual condition and relevant regulations. In strict compliance
with the environmental protection standards, the Company implements control measures against air pollution, water
pollution and noise, actively initiates water and soil conservation design and analyses environmental impact, and accepts
assessment on the impact to biodiversity.
 Environmental, social and governance report 2022 63

The Company contemplates on the environmental protection measures for all stages of the projects’ construction
and operation prior to construction. During the construction, relevant regulations are strictly obeyed, and construction
teams are informed about the national laws and regulations on biodiversity, relevant operating regulations on animal and
vegetation protection, and knowledge on animal and vegetation conservation to improve their willingness to biodiversity
conservation. The construction should be suspended in the case of wildlife appearance until they are away from the site
and its surrounding area; construction personnel are prohibited from poaching wildlife and digging local wild plants to
avoid impact on biodiversity.

To restore the environment, measures such as land reclamation and vegetation restoration are taken after the completion
of the construction. Pollutants, electromagnetic noise, other noise, etc. are monitored and treated strictly based on
the requirements of relevant laws and regulations on environmental protection. When economic benefits permit, we
strive to integrate power generation projects with environmental protection, promote the preliminary investigation
and implementation of ecological projects, and make positive contributions to local environmental governance and
improvement.
 Huaneng Power International, Inc.
64
ENSURING SAFETY BY IDENTIFYING AND ADDRESSING HIDDEN HAZARD

ENSURING
SAFETY BY
IDENTIFYING AND
ADDRESSING
HIDDEN HAZARD
 Environmental, social and governance report 2022 65

06 Safety is the foundation for the development of an

enterprise. Huaneng International always adheres
to bottom-line thinking and red-line awareness, and
solidly implements its three-year rectification action for
production safety to improve the system and capability
of safe production management, thus fundamentally
eliminating potential dangers and preventing and
resolving major safety risks to ensure the safety of our
people and facilitate high-quality development of the
Company.
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ENSURING SAFETY BY IDENTIFYING AND ADDRESSING HIDDEN HAZARD

Ensuring Safety by Identifying and Addressing Hidden Hazard

In accordance with the Production Safety Law of the People’s Republic of China ( ) and
other production safety laws and regulations, Huaneng International regards safety as its top priority and builds a solid
foundation for production safety. Adhering to the production safety principles of “people-oriented, safety first, prevention
first, comprehensive management” and upholding the safety conception of “safety is credibility, safety is efficiency, safety
is competitiveness, and safety responsibility is of the utmost importance”, the Company pays attention to the inspection
and remedial of safety hazards and insists on zero-tolerance policy for safety incidents. In addition, the Company aims
to prevent fatal production accident, mishandling of operations with malicious intent, major equipment damage, serious
and extraordinary equipment incidents, fire outbreaks, traffic accidents induced by human factors, environmental pollution
disasters and other incidents that may adversely affect the Company’s reputation. The Company places safety in the first
place and attaches great importance to the personal safety and occupational health of our employees. We strengthen the
red-line awareness to ensure production safety is properly conducted.

Typhoon, flooding, and other natural disasters are becoming more and more frequent in recent years, and they threaten
the life safety and production safety of local enterprises and their employees. The Company has identified five key
safety management tasks for this year: (1) continuously carried out inspections and evaluations of the production safety
responsibility system, ensured the establishment of a list of responsibilities for each post, standards for the work in place,
and accountability mechanisms, sorted out, summarized, and notified common problems to encourage enterprises to
rectify jointly; (2) promoted a dual prevention mechanism and made earnest efforts in the implementation of Guidelines for
Classified Production Safety Risk Control ( ); (3) vigorously strengthened safety management
in infrastructure construction and promoted an intrinsic safety management system in this regard; (4) learned from
the accidents and monitored the shortcomings in outsourcing safety management and the system implementation to
enhance outsourcing safety management, strictly controlled outsourcing personnel’s entry, and enhanced rectifications for
violations to ensure construction safety; (5) arranged tasks for safety production and prepared for major floodings during
flood seasons to get through the flood season safely. The Company is committed to strengthening the implementation
of safety responsibility and outsourcing management to mitigate the impact of natural disasters on employees and
production safety through the above key tasks.

In 2022, there was no significant violation identified in the Company related to providing a safe working environment and
protecting the employees from occupational hazards. In 2022, the number and ratio of employee occupational death
were 0. In 2021, there was 1 occupational death, and the ratio was 0.0017%. In 2020, the number and ratio of employee
occupational death were 0.

6.1 Consolidating Intrinsic Safety System

According to the national laws and regulations on production safety, the Company, taking actualities of its subsidiaries
into consideration, has established its own fourfold Intrinsic Safety System, which comprises intrinsic safety of personnel,
process equipment, environment and management, including:

Ensuring Intrinsic Safety of Personnel

Intrinsic safety of personnel includes management staff and all employees’ safety awareness, safety conception and safety
management knowledge and skills. Management staff are required to have safety management knowledge and skills and
lead by example, while employees are required to ensure safe operation by carrying out adequate controls. The safety
behaviors of employees should gradually change from passive to active, and we urge employees to act in accordance
with rules and regulations and show good safety behavior everywhere.

Ensuring Intrinsic Safety of Equipment

Intrinsic safety of equipment refers to that equipment, facilities, or process technologies possess inherent mechanisms for
accident prevention. We adhere to high design and manufacturing standards and conduct systematic safety risk analysis
for all stages, including the construction stages such as proposal and design, as well as the routine inspection and
maintenance during operation. We also proposed and implemented risk control measures and installed proper protection
mechanisms for our processes and equipment to ensure the safe, stable and normal operation of equipment and systems
within the prescribed operating and maintain effective control.
 Environmental, social and governance report 2022 67

Ensuring Intrinsic Safety of Environment

Environment includes spatial environment, physical and chemical environment, natural environment, etc. Environments
should meet all kinds of requirements. For the intrinsic safety of the spatial environment, we make sure that the
production space, layout, various safety and sanitation facilities and passages comply with the state’s relevant regulations
and national standards. For the intrinsic safety of the physical and chemical environment, effective measures are taken
to manage and control lighting, ventilation, temperature and humidity, noise, dust and toxic and harmful substances
in compliance with national standards to ensure workers’ health and safety. As for the intrinsic safety of the natural
environment, we enhance the disaster resistance and prevention capabilities of process and equipment and implement
emergency response and precautionary measures.

Ensuring Intrinsic Safety of Management

Intrinsic safety of management requires, under the condition of abiding by the national laws and regulations, companies’
formulation and implementation of higher standards on safety, norms, and regulations, as well as their development of a
comprehensive management system. In respect of safety management, we are transitioning from post-incident based to
identification-based in our safety management, and we are emphasizing more on process controls rather than remedial
efforts when responding to safety incidents. We also seek to apply safety system engineering principles and conduct
scientific analysis in formulating pre-emptive measures.

The PDCA Management Model of Intrinsic Safety System

The Company’s Intrinsic Safety System follows the PDCA management model, i.e., PLAN, DO, CHECK and ACTION,
and this loop-closed system can enable continuous improvement. The management model consists of six key elements:
leaders’ commitments, policies concerning safety, health and environment, planning, implementation and operation,
inspection and corrective measure, and management review.

Continuous
Improvement

Policies of
Safety, Health
and
Environment

Management
Review

Leaders’
Commitments Planning

Inspection
and
Corrective
Measures

Implementation
and
Operation
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ENSURING SAFETY BY IDENTIFYING AND ADDRESSING HIDDEN HAZARD

The Company’s documents concerning Intrinsic Safety System consist of system management manuals, normative
and procedural documents, as well as operating procedures and other supportive documents. Some major documents
include the Administrative Measures for Production Safety Supervision ( ), the Regulations
on Production Safety ( ), the Implementation Rules for Safety Performance Assessment (
), and the Emergency Management Measures for Major Incidents (Accidents) ()
) of the Company, etc.

System Management Manuals

I

Normative and Procedural Documents

II

III Operating Procedures and Other Supportive Documents

In 2022, the Company continued to develop its Intrinsic Safety System:

1 The Company was fully prepared for the standard production safety work under the pandemic prevention and
control and issued the Highlights on the Priorities for Safety Management During the Pandemic Prevention and
Control ( ) and the Selected Production Safety Accident Cases (
) to guide grassroots enterprises in developing production resumption plans, delivering risk alert
or warning education through accident case studies and strictly practicing pandemic prevention and control and
production safety.

2 In line with the State Council Work Safety Committee’s deployment, the Company implemented special
rectifications for production safety, and formulated the Three-year Action Plan for Special Rectifications for
13
Production Safety ( ). The Company managed the “Two Lists” in a dynamic
manner, reviewed and evaluated the responsibility system in 18 units including Huangtai Power Plant, and carried
out inspections following the principle of “Site Visit subject to Four Noes”14 in Dezhou Power Plant and other 8
units, reported issues promptly and fulfilled responsibilities for the purpose of simultaneous inspection, rectification,
and improvement.

3 In order to enhance risk control and prevent safety risks, the Company issued and implemented the Guidance on
Classified Control and Management of Production Safety Risk ( ), comprehensively
promoted the construction of the “dual” prevention mechanism of graded risk control and hidden danger detection
and management and implemented the intrinsic safety management system for infrastructure construction. The
Company also developed a regulating system for contractors and introduced detailed rules to launch a “blacklist”
to manage contractors. Meanwhile, the Company conducted special inspections on hazardous chemicals,
network-related safety, restricted space, and power supply during special event periods.

4 The Company strengthened emergency management and scientific innovation, explored the construction of
emergency scenarios, carried out more emergency drills to enhance its emergency response capability, and
promoted its achievements in safety technologies.

13
Two Lists: the risk list and potential hazards inspection and clearance list.
14
Site Visit subject to Four Noes: site inspection or visit by going straight to grassroots enterprises or sites with no
announcement issued, no notice given in advance, no briefing accepted and no accompanying person required.
 Environmental, social and governance report 2022 69

6.2 Strengthening Safety Governance

The Company and all its affiliated units have established a robust safety management structure and a complete set of
safety supervision mechanisms to fulfil safety supervision responsibility. As the management, construction and operation
maintenance team and other business functions incorporate the production safety principle with their business line to
better form a production safety protection system. The interaction of safety supervision and protection ensures the
accomplishment of production safety targets.

Establishing a Three-Tier Safety Supervision System

Huaneng International has set up a Committee of Safety, Occupational Health and Environmental Protection, whose
main mission is to adhere to the policy of “safety first, prevention first, comprehensive management”, implement the
national, industrial, and Huaneng Group’s guidance and arrangements on production safety, organize and guide the
Company’s internal work on production safety, analyze and propose essential decisions and measures concerning
production safety, and coordinate and solve critical issues in production safety. Under the leadership of the Committee
of Safety, Occupational Health and Environmental Protection, the Company built a three-level safety supervision system
of “headquarters – regional branches – grassroots business units” to ensure intrinsic safety is implemented for every
stage of production and operation. The Company takes charge of system design, business strategy, on-site supervision
and work assessment. Regional branches are responsible for implementing the Company’s various safety management
requirements, work plans and deployment decisions, and fulfilling the duty of organization and coordination as well
as specifying the major responsibilities of their affiliated grassroots units. Grassroots business units are tasked with
implementing the Standard on the Fulfillment of Production Safety Responsibilities ( )
and the safety responsibility of all levels and positions, establishing the responsibility consciousness of “the one who is
responsible is the one who works, the one who inspects, the one who is in charge and the one who approves”.
 Huaneng Power International, Inc.
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ENSURING SAFETY BY IDENTIFYING AND ADDRESSING HIDDEN HAZARD

The Company and all its affiliated units established a robust safety management structure and a complete set of safety
supervision mechanisms to fulfil safety supervision responsibility. This management structure works together with the
production safety protection mechanisms to ensure the accomplishment of production safety targets.

Integration of Three-Level
Safety Supervision

Establishment of the Company’s

Safety Production Monitoring Group

Specific Inspection Inspection on Vital Points Principles

Specific Inspection of Seasonal Inspection on Point-by-Point Inspection,

Hazardous Chemicals Spring and Autumn Side-by-Side Supervision

Preparing for Upcoming

Fire and Explosion Prevention Summit of Summer Precipitation,
Safety System Preventing and Withstanding Flood

Power Supply Guarantee

“Two-Tickets” On-Site Risk Control for Special Events

Power and Heating Supply

Intrinsic Safety System Guarantee, Festivals Power
Supply Guarantee

Comprehensively Training and Education

Outsourcing Management

Inspection Result Inspection Result

Production Safety Target Responsibility System

The Company and its subsidiaries adopted a target responsibility system concerning production safety. The Company’s
management and their subordinate unit’s personnel in charge sign the Production Safety Target Responsibility
Memorandum ( ) each year and carry out monthly pre-assessment and annual final assessment
to guarantee that the responsibilities are fulfilled at each level. The Company’s target of production safety abides by “one
vote veto”, which refers to a quantitative evaluation of production safety performance of each unit with a starting score
of 100 points. If there is any injury or death accident of employees, injury or death accident of contracted personnel for
which the Company is responsible, serious equipment accidents for which the Company is responsible, fire disasters,
environmental pollution and damage accidents for which the Company is responsible, 100 points will be deducted.
 Environmental, social and governance report 2022 71

6.3 Implementing Safety Measures

Huaneng International sees production safety as paramount. The Company has taken comprehensive and effective
measures in system improvement, risk control reinforcement and emergency management through the responsibility
system to promote the implementation of production safety, and solidly implemented special rectifications for production
safety, contributing to the continuous enhancement of production safety.

Overall Production Safety

The Company made concerted efforts to prevent and control the impact of the pandemic, ensuring the power supply
in Wuhan and other critical areas. In line with the deployment in the State Council Work Safety Committee’s Three-year
Action Plan for Special Rectifications for Production Safety throughout the country, Huaneng International implemented
special rectifications and ensured power supply during important events and periods. The Company also conducted
flooding prevention and control to defend against the natural disasters. In 2022, there was no major or above accidents
that occurred in the Company.

Huaneng Liaocheng Thermal Power Plant Made Solid Efforts to

Build a “Firewall” of Production Safety
During the pandemic, Liaocheng Thermal Power Plant
launched an emergency plan requiring employees to be
well prepared for emergencies anytime and anywhere. The
production management personnel at all levels in the plant
monitored site work constantly and provide more supervision
and guidance for key tasks and operations. Personnel at all
levels from departments including operation, maintenance
and fuel enhanced the inspection, maintenance, and defect
elimination of equipment to ensure the continuous and stable
production of the unit in a secure manner.
Liaocheng Thermal Power Plant
 Huaneng Power International, Inc.
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ENSURING SAFETY BY IDENTIFYING AND ADDRESSING HIDDEN HAZARD

Carrying out Comprehensive Safety

Inspections to Eliminate Hazards in Time

1 Strengthening process tracking and making decisions in real time. We hold daily morning meetings concerning
production safety to analyze problems, keep abreast of the production safety conditions of the grassroots units,
provide security instructions, and commence related work in time. We established three WeChat Groups for flood
prevention to post early warning promptly and exchange unimpeded flood information. We also prepare daily
reporting of dynamic flood information, providing information support for flood condition analysis and deployment
decisions.

2 Enhancing organization management to ensure that responsibilities are individual-specific and the on-duty policy is
strictly implemented. The leading groups at all levels take the lead in fighting the flood.

3 Strengthening the routine investigation and handling of potential hazards. We focus on the hazards identified to
ensure thorough risk prevention and control with measures in place and hazards being properly managed.

4 Putting emphasis on “Personnel Safety”. We inspect the slopes around the production and living areas, as well as
the prevention and avoidance of debris flow, to ensure that production and living facilities are away from hazardous
areas.

5 Strengthening emergency management, performing emergency drills, improving emergency plans and ensuring
sufficient material reserve for emergency.

6 Strengthening monitoring and early warning, taking emergency response measures promptly and scientifically. We
cooperate with local governments by following the orders, actively participating in emergency rescue and evacuate
personnel in time.
 Environmental, social and governance report 2022 73

Implementing Safety Responsibility Assessment to Strengthen the

Responsibility
In line with the State Council Work Safety Committee’s deployment, the Company put ongoing efforts in safety
responsibility assessments, developed position responsibility list, performance indicators and accountability mechanisms,
and summarized and reported safety issues for enterprises to rectify jointly. As part of the efforts to achieve better
management of production safety, the Company has prepared “the 14th Five-Year Plan” Action Plan of Production Safety
in Power Supply“”( ).

Strengthening On-site Management

and Control, and Improving Safety
Risk Management and Control Ability

1 We urged each business unit to conduct on-site risk investigation and analysis to “identify potential dangers
and quantify risks” from the perspectives of personal safety, equipment safety and environment safety based
on the “Two Tickets” policy, putting together a risk identification database and standardizing the “Two Tickets”
management process. We continued to promote the construction of the “dual prevention” mechanism combining
graded risk control and potential risk inspection and clearance, systematizing and standardizing potential risk
inspection and graded risk control. In addition, the abilities of grassroots business units in risk identification,
analysis and control were further improved.

2 Based on the construction of the dual prevention mechanism, the Company strengthened potential risk inspection
and clearance and on-site supervision while standardizing the “Two-ticket, Three-policy” management process for
grassroots units. We took a zero-tolerance attitude towards non-compliance and applied stringent controls to key
areas, key procedures, key event periods, key positions and key persons to enhance safety protection and prevent
casualties. We focused on the investigation of fire risks in electricity systems, coal transportation, boiler fuel oil,
lubricating oil, desulphurization, hydrogen, and other systems, as well as the management of liquid ammonia
tanks, the four major pipelines and pressure vessels to prevent explosions and avoid severe accidents.

3 The Company continued the implementation of a series of special treatment projects and special inspections on
dangerous chemicals, major hazards, fuel systems, outsourcing standardized acceptance, metal supervision,
flood prevention and control, fire safety and fall prevention to prevent the occurrence of accidents. The Company
promoted the construction of the production safety risk monitoring and warning system for hazardous chemicals,
urged business units to inventory and classify their existing risk sources and connect to the government’s
production safety risk monitoring and warning system for hazardous chemicals in accordance with local
governments’ requirements and time limits.

4 The Company enhanced the safety management for natural gas pipelines and issued the Notice on Enhancing the
Safety Management of Natural Gas Pipelines ( ), conducted more patrols
and inspections on equipment pipelines, strengthened the control to third party construction risk, established
accountability for the safety management of natural gas pipelines, enhanced pipeline corrosion control and
management and facilitated the implementation of internal and external inspection to ensure effective risk control
for gas pipelines. The Company also invited experts to conduct special safety inspections for Suzhou Thermal
Power Plant and Guilin Gas Turbine Power Plant.
 Huaneng Power International, Inc.
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ENSURING SAFETY BY IDENTIFYING AND ADDRESSING HIDDEN HAZARD

An Elaborate Production “Safety Net” was Put in Place

and Further Improved in Huaneng Yangluo Power Plant
With the aim of improving safety in power generation and
preventing and mitigating safety risks, in 2022, Huaneng
Yangluo Power Plant launched a comprehensive project to
manage major hazardous sources in ammonia area. Prior
to this project, the six units of the power plant adapted the
selective catalytic reduction (SCR) process in the flue gas
denitration system, sharing the same set of equipment for
production and storage, produce and provide liquid ammonia.
Upon completion of this project, liquid nitrogen can be
converted to urea during storage which reduces the safety
risks in the transport and storage of liquid ammonia, and Commencement Ceremony for
improves the operation safety of the denitrification system, the Comprehensive Project for
further enhancing the foundation for production safety. In this Management and Renovation of the
Ammonia Area in Yangluo Power Plant
regard, we will further improve production safety and get well-
prepared for power supply assurance requirement.
 Environmental, social and governance report 2022 75

Enhancing Safety Risk Awareness, and Improving Staff’s Emergency

Response
Huaneng International proactively arranged tasks regarding production safety via video conferences and took solid
steps in carrying out Production Safety Promotion Year Action. We formulated Production Safety Promotion Year Action
Plan ( ) which was submitted to the Office of the Chairman for review and approval. Through
Production Safety Promotion Year Action, the Company reinforced its achievements of the three-year special rectification
action for production safety, strengthened the safety management in key areas and weak links, and further fulfilled
safety responsibilities. We promoted the implementation of the “dual prevention” mechanism combining classified risk
control and potential risk inspection and clearance in all respects, effectively containing production safety accidents and
facilitating high-quality development of the Company.

The Company continued to promote scenario-based emergency drills expanding from traditional accident scene
emergency simulation to enterprise-local government cooperation in disaster relief, crisis response, and aftermath
recovery. From the comprehensive scenario-based drills, the Company identified issues, refined its emergency response
processes and enhanced its emergency response capacity and efficiency. The Company organized emergency drills
regarding black-start and liquid ammonia leakage in Laiwu Power Plant and Changchun Thermal Power Plant, further
developing the emergency management team and enhancing the staff’s emergency response.

6.4 Safeguarding Occupational Health

The occupational health of our employees has always remained Huaneng International’s top concern. In compliance with
the Labor Law of the People’s Republic of China ( ), the Production 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 other laws and regulations, the affiliated units of the
Company formulated the Occupational Disease and Hazard Management Standards ( ) and
the Occupational Health Supervision and Management Standards ( ) in accordance with the
requirements of the Company’s intrinsic safety management system. We always put our employees’ health and safety first
by raising awareness of work safety and preventing accidents. The Company strictly implemented regular safety hazard
inspection, hazard notification, prevention and control and offered regular health checks for positions with exposure to
occupational hazards and established a health monitoring file inventory for positions at different levels to ensure that
occupational health and safety were under control.
 Huaneng Power International, Inc.
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ENSURING SAFETY BY IDENTIFYING AND ADDRESSING HIDDEN HAZARD

All grassroots business units set up occupational disease prevention organizations to implement occupational disease
prevention responsibilities as well as identify and evaluate workplaces with occupational hazards against relevant
standards to categorize the hazards. Employees are trained on occupational disease prevention, while clear warnings are
put up in workplaces with potential occupational hazards where regular inspection is carried out. Regular occupational
health examinations, i.e., chest X-ray and hearing test, were conducted for employees in relevant production positions
such as fuel supply, boiler operation and overhaul, and an established occupational health management database was in
place. To safeguard staff’s health, the Company installed climbers or elevators for all new projects to reduce the possibility
of typical occupational diseases, such as lumbar disc herniation in the wind power industry. Projects that had already
been put into production were also required to install the equipment to reduce the staff’s climbing exercise intensity and
reduce the inducing factor for diseases.

6.5 Raising Employees’ Safety Awareness

Raising employees’ safety awareness is the key to the Company’s safety management. Developing and encouraging
employees to participate in the Company’s safety activities to become aware of the importance of safety and practice
appropriate safety behaviors is the key guarantee to creating an intrinsically safe enterprise.

Huaneng International incorporated safety education and training into the Company’s annual and medium-term and long-
term plan. It established double-level and triple-level educational and training mechanisms and ensured the supply of
required coaches, funds and logistics. The Company is responsible for preparing training plans according to the safety
education outline, organizing safety education and training, and recording and archiving of safety training. All business
units of the Company ensured that employees receive adequate training and adjust safety education plans and organize
training for power plants, departments, and teams based on their production characteristics.
 Environmental, social and governance report 2022 77

6.6 Strengthening Infrastructure Security

The Company is devoted to infrastructure safety management and promoted the execution of the intrinsic safety
management system in this regard. The Company monitored the weaknesses in outsourcing safety management and
the system implementation to improve outsourcing safety management. The Company strictly controlled the entry of
outsourcing personnel and enhanced rectification measures for violations to ensure construction safety. The Company
formulated the Regulations for the Safety Management of Power Engineering Construction ( ),
specifying rules on how contractors should fulfill safety management when contracting power engineering construction
and regulating the accomplishment of the safety management target.

Strictly Managing Contractors’ Qualifications

The Company ensures that only qualified contractors can participate in the construction of the Company’s projects. The
contractors’ qualifications, performance records and bidding documents are strictly evaluated. Bidding is only open to
contractors with appropriate qualifications, proven performance records and adequate capabilities for the project. Those
with a history of major safety accidents are prohibited from bidding for the Company’s projects.

Strictly Managing Subcontracting

Any form of illegal subcontracting is strictly prohibited by the Company. The contractor must obtain the construction
unit’s consent for subcontracting and the subcontractor must have corresponding qualifications and work safety licenses.
Contractors assume overall responsibilities for on-site construction safety. They shall strengthen on-site management
and control by incorporating their subcontractors into their safety management system and implementing similar safety
measures.

Strictly Managing Safety Training and Education

The Company requires contractors to organize production safety training and education, establish a safety training
system, specify the production safety training department and its principal, formulate an education and training plan for
production safety, establish employee safety training filing records, regularly identify safety education and training needs,
and assess the effectiveness of training to continuously improve employees’ awareness of safety and self-protection.

Deepening the Implementation of the Responsibility Subject

The Company has established a sound production safety responsibility system, specified the responsible personnel,
scope of responsibility and assessment standards for each production safety position, as well as safety management
responsibilities for engineering construction at all levels, and strengthened safety supervision and management, ensuring
the effective operation of the safety supervision and assurance system.

Enhancing On-site Safety Control

The Company vigorously improves safety through technology, develops and promotes the function of smart infrastructure
security modules to assist on-site safety control, implements closed management of construction sites by strict access
control, tightens management and control of employees’ actions and working process, and reduces habitual violations.
The Company also prepares and approves a technical scheme for operation safety and fulfills technical disclosure for
construction safety and on-site safety supervision to control safety risks of contractors effectively.

Enhancing Potential Risk Inspection and Mitigation

The Company organizes contractors to carry out large-scale on-site safety inspection on a regular basis to assess, record
and file the potential safety risks identified. The Company is responsible for supervising contractors to formulate and
implement rigorous mitigation plans as well as performing acceptance inspection of the potential hazards mitigation for
closed-loop management of potential risk inspection and mitigation to consolidate and improve the infrastructure safety.
 Huaneng Power International, Inc.
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PROMOTING SYNERGY BETWEEN TALENTS AND EXCELLENT ENTERPRISE

07
Human resource is our primary resource. The sustainable
development of talents is the driving force for the
sustainable development of the Company. Human
resource is essential to the success of the Company.
Regarding employees as the foundation for the
Company’s long-lasting prosperity, Huaneng International
is dedicated to building professional teams, prioritizing
employees’ rights and interests, recognizing employees’
value and building a development platform to promote
joint development of the Company and its employees.
Environmental, social and governance report 2022 79

PROMOTING
SYNERGY
BETWEEN
TALENTS AND
EXCELLENT
ENTERPRISE
 Huaneng Power International, Inc.
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PROMOTING SYNERGY BETWEEN TALENTS AND EXCELLENT ENTERPRISE

Promoting Synergy between Talents and Excellent Enterprise

7.1 Protecting Employees’ Rights and Interests
We are devoted to the goal of “maintaining long-term, stable and good relationships with the employees” and the principle
of “lawful employment and equal employment opportunity”. We created an environment where everyone has a chance to
contribute and achieve career development and self-worth. We are dedicated to improving employees’ sense of fulfillment
and happiness while continuously enhancing unity within the Company.

Lawful Employment Equity

The Company adheres to two major principles, namely lawful employment and equal employment opportunity, strictly
abides by the Labor Law of the People’s Republic of China ( ), the Labor Contract Law of the
People’s Republic of China ( ) and the Provisions on the Prohibition of Use of Child Labor (
), as well as the Administrative Measures for the Recruitment of College Graduates (Trial) (
() ), signs employment contracts with all staff and prohibits the employment of any minor under the age
of 16. The Company has consistently and strictly implemented national laws and regulations on the minimum age limit
and clarified the rights and obligations of both parties regarding labor and employment to avoid the risks of violation such
as child labor and forced employment at the institutional and operational levels. The Company provides equal opportunity
and protection to staff with different nationalities, races, genders, religious beliefs and cultural backgrounds. We offer
equal terms to male and female employees, oppose forced labor and job discrimination and adopt an equal employment
policy through the entire employment period of each employee. As the risk of the Company employing child labor and
forced labor is rather low, there is no need to establish remedial measures for identified violations.

As of the end of 2022, the Company had a total of 57,069 employees, of whom 81% had received college qualifications
or above. In 2022, no labor dispute arising from breaches of laws and regulations occurred.

Protection of Employee Rights and Interests

Upholding our “people-oriented” principle, the Company regards employees as the primary resource and has established
a comprehensive and robust system to protect employees’ fundamental rights and interests. We strive to be a caring
employer and improve employees’ loyalty, and we take employees’ concerns to heart.

Basic Protection: In strict accordance with the requirements of the Labor Law of the People’s Republic of China (
) and the Social Insurance Law of the People’s Republic of China ( )
concerning employees’ rights and obligations, the Company has set up several social insurances including basic pension,
basic medical insurance, work-related injury insurance, unemployment insurance and childbirth insurance as well as
housing provident funds, annuities and supplementary medical insurances to ensure that employees’ rights are protected
in the event of retirement, medical treatment, work-related injuries, unemployment or childbirth. In 2022, the Company did
not have any social insurance violations or defaults.

Compensation System: The Company, based on the employee’s “position, performance, work efficiency and the
principle of equality”, has established an effective incentive mechanism under which employee’s compensation is linked to
the Company’s operating result and the employee’s individual performance. An employee’s total compensation includes
basic salary, bonus, and allowance, and is paid on time in full amount.

Right for Leave and Vacation: The Company and its subsidiaries have established sound leave systems in accordance
with the state regulations and local policies. Either the standard working hour system and the flexible and aggregated
working hour system may be adopted based on the Company’s production condition and the employee’s position to
protect the employee’s right to take leave. The leave system specifies that leaves shall include statutory holidays, paid
annual leave, home leave, marriage leave, funeral leave, maternity leave, sick leave and personal leave, thereby protecting
staff’s right to take a vacation.

Democratic Management and Openness of Factory Affairs

The Company continuously deepens democratic management and makes factory affairs more transparent to standardize
the operation of employees’ assembly and clarify its functions. In 2022, the Company successfully held the 2022 annual
employees’ assembly and 2022 work conference. The Company’s proposals were solicited and handled during the
meeting with a response and handling rate of 100%. The Company guided the employee representative supervisors
 Environmental, social and governance report 2022 81

to standardize their management and fulfill their responsibilities and allowed employee representatives to participate
in the enterprise governance in an orderly manner, which fully activated employees’ proactiveness and enthusiasm in
participating in the Company’s management. In addition, we deepened our efforts in transparent business and democratic
management to enhance scientific and democratic management and uploaded policies regarding the labor union to the
Openness of Factory Affairs tab on our official website, thus protecting employees’ rights to know, participate, express
and supervise and promoting joint development of the Company and our employees.

7.2 Promoting Employee Development

In the spirit of “human resource as the primary resources of the Company”, Huaneng International vigorously promotes
its talent-driven development strategy. With talent capacity building as the core and optimization of talent structure
as the main task, we develop talent resources, optimize talent allocation, improve talent ability and quality, create an
enabling environment for talent growth, and inspire talent innovation by seizing the three links of attracting, training and
making good use of talents. In doing so, we build a loyal, honest and responsible team of talents with excellent quality
and proficiency, which is well structured, professionally equipped, devoted to careers in Huaneng and in line with the
Company’s development and strategic needs.

Training and Development

To strengthen the construction of a training organization system and further improve the three-level training system
consisting of “headquarters – regional branches – grassroots business units”, the Company has established nine group-
level training bases (training classrooms). All grassroots business units have training centers to actively carry out training
related to technology, skills and management.

The Company strictly follows the Regulations on Team Leader Training ( ) and the Regulations on
Production Worker Training ( ) to facilitate training that meets the needs of the Company and
employees at the regional branches and grassroots business units based on the actual situation. Focusing on the critical
tasks of the year, the Company has developed the 2022 training plan, actively and steadily promoting training related to
professions, skills and management. Based on the actual situation, each regional branch has formulated its training plan,
comprehensively summarizing the training work of this year, studying and proposing training plans and ideas for the next
year, to further improve the training work.

In 2022, the Company, regional branches and grassroots business units conscientiously implemented the annual training
plans, coordinating and organizing on-board training for new recruits, business management training and production skill
training. We also carried out various skill contests, technical competitions and on-the-job exercises where 1 employee was
awarded the “National Technical Expert” title, 1 was selected for the “Central Enterprise Great National Craftsmen Support
Program”, 3 were awarded the “National Archival Craftsman” title, 5 were awarded the “Power Industry Outstanding
Operator” title, 15 were awarded the “Huaneng Craftsmen” title, and 70 were awarded the “Huaneng Group Technical
Expert” title. The Company also proactively arranged recognition of occupational skills and occupational skill appraisals,
and deepened the reform of evaluation on skilled talents, so as to effectively enhance employees’ management ability as
well as professional and production skills.

Career Development
The Company focuses on employees’ career development. The Company continues to optimize the talent allocation and
growth environment, provides diversified career development paths and further promotes the dual hierarchical promotion
mechanism whereby employees can move up the corporate ladder either by post or job function. The system is aimed at
stimulating talents’ enthusiasm and injecting vitality into the Company.

The Company makes more efforts to refine its talent system and mechanism and optimize the recruitment procedure and
evaluation mechanism for professional and technical positions. The Company promotes employees with outstanding skill
sets and performance or those well-recognized by their peers. Through this approach, the Company has built an excellent
platform for talents to showcase their potential.

The Company continues to strengthen its core management team. Upholding Xi Jinping's Thoughts on Socialism with
Chinese Characteristics for a New Era, and implementing CPC’s roadmap in the New Era, we adhere to the basic
principles of “evaluating candidates by their moral integrity and professional competence with priority given to the former
 Huaneng Power International, Inc.
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PROMOTING SYNERGY BETWEEN TALENTS AND EXCELLENT ENTERPRISE

and appointing those with good merits” to select and appoint cadres. Moreover, we persist in the correct orientation for
the selection and appointment of people and concentrate on developing both the Company and Huaneng’s business to
select the cadres with the right political ideology, a strong sense of responsibility and great performance. We train the
leaders in practice through job rotation and more extensive communication, thereby facilitating talent flow and optimizing
human resource structure. We continuously improve management’s performance to handle complex situations and build
a talented team of high-quality and professional cadres, which meets the standards of qualified management in the new
era who are loyal, honest and responsible.

The Company continuously strengthens talent development, deepens the cultivation of international talents, actively and
steadily carries out training work, proactively carries out title management and talent evaluation work, and optimizes
employee recruitment to improve core management and professional teams’ comprehensive skills and management
capability.

In 2022, the Company further strengthened the selection and training of young cadres, continuously improving the age
structure and stimulating young employees’ working enthusiasm. The Company formulated development plans for young
talents and enhanced talent training with the consideration of the Youth League Committee’s work, providing a platform
for outstanding youth to practice and strengthen their ability to help the Company develop versatile talents.

In the future, the Company will deepen the reform of labor, personnel and distribution system, further improve the talent
cultivation mechanism, optimize talent development environment, strengthen talent resource development and encourage
staff to continuously improve themselves in their positions to achieve self-realization and joint development with the
Company and staff.

7.3 Caring Employee Health

Employees are fundamental to the development of the Company. Huaneng International can only continuously and
steadily supply energy for economic and social development based on the hard work and dedication of all employees.
The Company always adheres to the people-oriented development concept and vigorously implements the talent-driven
development strategy to enable staff and the enterprise to grow together, sharing the fruits of reform and development,
thus filling employees’ work and life with happiness.

In 2022, adhering to the newly-revised Labor Union Law ( ), Huaneng International was devoted to serving the
employees. Given the pandemic prevention and control in both domestic and foreign COVID-19-stricken areas, efforts
were made in organizing psychological consultation lectures, paying visits and expressing gratitude to our overseas
employees. Moreover, the Company has reached strategic cooperation framework agreements with companies in the
pharmaceutical and healthcare industry, providing more professional health services such as post-physical examination
services, healthcare management, medical insurance, medical assistance and cloud platform data support to our
employees. In addition, the Company helped employees solve problems and difficulties in their work and life, so that
employees can feel the care and warmth of the Party Committee of the Company and feel happier and more secure. In
doing so, the unity, cohesion and synergy of the Company can be promoted.

Signing Strategic Cooperation Framework Agreements with Companies

in the Pharmaceutical and Healthcare Industry
 Environmental, social and governance report 2022 83

Under the theme of “Welcoming the 20th National Congress

of the CPC and Striving for a New Journey”, the Company has
organized colorful online and offline cultural and sports activities
in various forms, encouraging employees to participate in
the calligraphy, painting and photography collection activities
hosted by the All-China Federation of Trade Unions, the Energy
and Chemical Geology Union, the Labor Union of the Group
and other organizations, and won a prize in the “Changes in
the Three-year Reform” essay activities. As the initiating unit
of the Table Tennis Association of the Group, complying with
the policies concerning the pandemic prevention and control,
the Company has set up 6 association groups to carry out
regular activities and logistic work such as event organization, The Company Organized to Participate in the
management and promotion and management of dues. The “STIGA-HUADING” 5th Table-tennis Invitational
representatives of the Company won the third place in “STIGA-
Tournament for Agency in Beijing
HUADING 5th Table-tennis Invitational Tournament for Agency
in Beijing (Season 1)”.

Actively responding to national fertility policy, the Company strives to address the concerns of female employees. At the
International Women’s Day on March 8, the Company expressed its gratitude to female employees by holding activities
such as “Cultivating Reading Culture at Women’s Day” reading activity and “Graceful Women with Charm” decoration-
making activity.

Holding “Graceful Women with Charm” Decoration-Making Activity

to Celebrate Women’s Day
 Huaneng Power International, Inc.
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REALIZING MUTUAL BENEFITS AND WIN-WIN RESULTS

REALIZING MUTUAL
BENEFITS AND
WIN-WIN RESULTS
 Environmental, social and governance report 2022 85

08 As a responsible corporate citizen, Huaneng International has always

adhered to the harmonious development concept of “serving the
nation, benefiting the society, seeking multiple wins and growing
together”. We fully consider and effectively respond to the demands
of stakeholders and actively devote ourselves to serving or operating
areas. Furthermore, we cooperate with stakeholders to push forward
economic and social development, share development fruits to give
an impetus to build a harmonious and win-win society.
 Huaneng Power International, Inc.
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REALIZING MUTUAL BENEFITS AND WIN-WIN RESULTS

Realizing Mutual Benefits and Win-win Results

8.1 Making Concerted Efforts to Seek Common
Development
Building trusted and cooperative relationships with suppliers is crucial to realizing the Company’s strategy. Our policy is
to remain open, fair and just in working with suppliers, and we emphasize effective communication to strive for suppliers’
understanding and recognition of the Company’s corporate values and culture. We hope to maintain long-term and
mutually beneficial relationships with suppliers and jointly promote the stable and sustainable development of the industry.

Based on the supply category, the Company divides our suppliers into three categories: material, service and engineering.
The Company’s supplier management emphasizes the principle of “Classified management, stringent acceptance control,
quantitative assessment and dynamic maintenance”.

Supplier Development
The Company’s business units at all levels conduct supplier stocktaking and analysis each year to identify more high-
quality suppliers for our supplier inventory. Meanwhile, the Company solicits eligible suppliers through various channels,
such as procurement guides, mass media, product launches, product showcase (sales) events, industry associations,
employee recommendations, public tenders and supplier liaisons.

Supplier Acceptance
The Company’s business units at all levels impose stringent controls on supplier acceptance. Only suppliers with a good
reputation, advanced technologies, excellent product performance and strong ability to perform are accepted, and
accepted suppliers are scrutinized for the legality of their business operations and the authenticity of their qualifications,
among other things.

Supplier Selection
We select suppliers in an open, fair and just manner, considering their environmental and social impact. Procurement
activities are classified into two categories, namely tendering procurement and non-tendering procurement. Tendering
procurement includes open tender and invitation to tender, while non-tendering procurement includes competitive
negotiation, quotation and single-source procurement. For tender projects that are required to be conducted openly
according to the law, the related work procedures are carried out in strict accordance with national laws and management
systems of the Company, and all procurement activities are implemented publicly through the procurement management
platform and e-commerce platform to achieve the goal of “every effort shall be made for tender and all activities shall be
carried out publicly”.

The Company requires all suppliers taking part in a tender to have the ISO 14001 environmental management systems
certification and the ISO 9001 quality management systems certification. Suppliers included in the List of Enterprises with
Serious Illegal and Dishonest Acts by the industry and commerce administration authorities in the National Enterprise
Credit Information Publicity System, or the List of Dishonest Persons Subject to Enforcement by the Supreme People’s
Court on the website of “Credit China” or credit information sharing platforms at all levels are prohibited from participating
in procurement activities. If the supplier has already participated in procurement activities, the tendering documents or
response documents will be rendered invalid. Suppliers whose related relationships are prohibited by law and agents and
suppliers sub-authorized are prohibited from participating in the procurement activities of the same project. The tendering
documents or response documents of those who have participated in procurement activities will also be rendered invalid.
 Environmental, social and governance report 2022 87

Supplier Assessment
Supplier assessment is based on the “user assesses” principle. Based on Huaneng’s procurement management
platform, each of the Company’s various business units conducts comprehensive and annual assessments on the project
implementation of suppliers who have contractual relationships with the unit. Suppliers will receive assessment feedback
through the e-commerce platform, which serves as an essential reference for future procurement.

Supplier Monitoring
In response to the quality problems occurring in the provision of procurement services by suppliers as well as the
problems in suppliers’ integrity, delivery, and service during their participation in warehousing applications, procurement
activities, and contract performance, the Company will, depending on the severity of the problems, take punitive
measures such as downgrading, suspension of the award of contracts, and suspension of cooperation for a limited time.

Coal Procurement
As a large power-generating company, Huaneng International places much emphasis on fuel supplier management.
The Company has formulated the Fuel Supplier Management Measures ( ), which specifies the
classifications of suppliers and their corresponding management measures and regulates the supply channels and
procurement activities for fuel purchase. Suppliers are generally divided into four categories: A: strategic suppliers, B:
general long-term suppliers, C: key market suppliers, and D: general market suppliers. The Fuel Supplier Management
Measures ( ) also stipulates responsibilities for the development and review of suppliers at all levels,
selection criteria, supplier approval and decision-making institutions and procedures, supplier assessment, supplier
upgrading and downgrading, exit mechanism, etc.

Regarding the monitoring and management of suppliers, the Company’s subsidiaries assess suppliers each year in terms
of coal supply stability, contract performance, contract fulfillment, production volume, procurement pricing and dispute
resolution. The Company’s fuel supplier assessment principles include: (1) Classified management; (2) User assesses; (3)
Regular assessment; (4) Dynamic management with an exit mechanism. The Company’s various business units perform
fuel supplier management inspections from time to time, examining: (1) Whether the relevant supplier management system
is sound, whether the decision-making institutions at all levels of supplier management are established, and whether the
institutions operate normally; (2) Whether such system is effectively implemented and whether the acceptance approval
is standardized; (3) Whether fuel supplier assessments are objective and accurate; (4) Whether dynamic management of
suppliers is carried out based on assessment results; and (5) Whether the exit mechanism is put in place.
 Huaneng Power International, Inc.
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REALIZING MUTUAL BENEFITS AND WIN-WIN RESULTS

In 2022, Huaneng International implemented the procurement mode of “long-term agreement + spot” in fuel procurement.
Aiming at large coal mine operators, the Company negotiates directly with the suppliers to sign long-term agreements,
and procurement is carried out in spot trading through open tender, tender follow-up and tender negotiation. To avoid
causing substantial disturbance to the market during the process of fuel tender, Huaneng International adopts the strategy
of “Achieving rapid development by small steps”, controls the procurement scale of each batch, selects representative
coal types and flow directions each time, and creates a competitive procurement environment. In doing so, Huaneng
International has precise control over coal procurement, which enables the Company to guide downturns in the market,
seek resources of “dead end”, and reduce procurement prices. At the same time, Huaneng International performs tender
follow-up and tender negotiation with competent suppliers at the tender price to keep the source of goods in batch and
meet the demand.

The Company selects suppliers with great care and carries out the authorized approval procedures for shortlisted
suppliers. Priority is given to state-owned large mine operators and large coal mine operators, and a “plant-mine direct
supply” model is adopted. In our view, state-owned large mine operators possess higher capability to fulfill contracts,
have more stringent product quality controls, are more compliant with laws and regulations and are more likely to take
social and environmental responsibilities. In addition, large coal mine operators are subject to stringent environmental
protection requirements imposed by the state concerning their planning, design, infrastructure, exploitation and mining
area management. Only those coal mine operators that meet these requirements are allowed for construction and
operation. With constantly intensified efforts in releasing quality production capacity in recent years, coal production work
has further improved in terms of quality, environmental protection standards, safety and labor protection. There is also a
specific set of requirements formulated by the state for the recruitment of miners in large coal mines. By selecting state-
owned large mine operators and large coal mine operators, we ensure that suppliers fulfill their social, environmental, and
labor protection responsibilities and obligations.

Always taking the green development concept of “energy saving, emission reduction, clean and environmental protection”
as the guide, Huaneng International regards environmental protection as a prerequisite for the survival and development
of the Company with the basis on national conditions and energy reform trends. Correspondingly, the coal-fired structure
is optimized ceaselessly during the development process to improve resource utilization efficiency. In the process of fuel
procurement, strictly abiding by the Interim Measures for the Quality Management of Commodity Coal (
) announced by the state, the Company prohibits the purchase of low-quality coal that fails to meet the national
control standards while encouraging the use of high-quality resources of high-calorie, low-sulphur and low-ash, which has
made outstanding contributions to the national targets of achieving the annual target of controlling energy consumption
and carbon emissions and promoting energy saving and emission reduction.
 Environmental, social and governance report 2022 89

8.2 Providing Quality Service

Huaneng International is devoted to providing power grid companies and other downstream enterprise consumers with
high-quality power products and services in sharing the Company’s achievements with clients whilst ensuring a safe and
stable power supply. The Company formulated Marketing Management Regulations ( ), Electricity
Market Trading Management Measures ( ), Heat Supply Management Measures (
) and other marketing-related systems to regulate customer service processes. In 2022, the scale of electricity
transactions in the provincial and municipal electricity markets accelerated. The Company made use of various channels
through electricity sales companies to strengthen the development of power users. It had a variety of customer types, a
relatively stable number and electricity consumption of large users signed for the whole year, and a rapid increase in the
number and electricity consumption of small and medium-sized users. Adhering to the customer-oriented service concept,
the Company established a customer service mechanism, and conducted promotion meetings, regular communication via
telephone and regular return visits to understand customer needs and solve their problems with electricity. The Company
also actively developed value-added services for customers, providing information consultation, quotation agency,
electricity consumption monitoring, energy consumption diagnosis, energy saving renovation, operation and maintenance,
financial service, etc., to continuously improve customer satisfaction and maintain harmonious customer relationships.
When receiving customer complaints, the Company immediately transfers the complaints to regional branches and
grassroots units and supervises them to handle the complaints in accordance with the management regulations and
procedures.

The Company adopted the following three approaches to improve customer service quality and customer
satisfaction and gain greater access to the end customer market:

1 Continuously improve the level of professional technology and electricity sales services, fully consider the
differentiated needs of users, and provide users with accurate and high-quality services.

2 Establish the service concept and a customer service system, which reflects the warmth of our service and
technical professionalism, thus drawing customer relationships closer and improving the adhesiveness of users.

3 Encourage the development of chargeable value-added services for individual needs, promote the rapid
development of value-added services, and actively explore business models that combine carbon trading with
electricity trading.
 Huaneng Power International, Inc.
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REALIZING MUTUAL BENEFITS AND WIN-WIN RESULTS

8.3 Creating a Better Society

Huaneng International has always adhered to the harmonious development concept of “serving the nation, benefiting the
society, seeking multiple wins and growing together”, by actively responding to the call of the state, providing supports
and assistance, earnestly fulfilling our social responsibilities and giving an impetus to build a harmonious and win-win
society. Major energy media such as xuexi.cn, China Electric Power News, CPNN.com.cn announced the Company’s
2021 Sustainability Report 2021
( ) upon its release in August 2022, which received attention from a
wide range of the industry and enhanced the Company’s brand influence and reputation.

Assisting in Rural Revitalization

In 2022, guided by Xi Jinping Thoughts on Socialism with Chinese Characteristics for a New Era, the Company has
thoroughly implemented the guiding principles of the 20th CPC National Congress, improved and optimized support
measures, implementing support projects in a precise manner to effectively promote the implementation of the rural
revitalization strategy of the state in accordance with the overall requirement of “developing rural areas into places with
thriving businesses, pleasant living environments, social etiquette and civility, effective governance, and prosperity”. Based on
the resources in targeted assistant areas, the Company has been playing the advantages of its main business, and invested
in the construction of photovoltaic projects to improve the energy has been playing and stimulate local economic growth.
In addition, the Company strengthened the support for characteristic industries and construction of public infrastructure to
improve local economic vitality and promote sustainable rural development. The Company has invested RMB12.982 million
in assistance throughout the year. Besides, the Company made every effort to implement consumption assistance and
promote the stable increase of income of the people in the assistant areas, and purchased agricultural products worth more
than RMB45 million in the targeted assistant areas.

Henan Branch Stationed in the Village to Help Farmers Which Won Their Approval

To implement the guiding principles of the 20th CPC National

Congress, Henan Branch’s assistant working team stationed
in the village and carried out the “care for everyone, warm
every family” farmer aiding activities, closely integrated the
work of farmer aiding and village-stationed assistance, further
consolidated the achievements made in poverty alleviation,
and sent winter warmth to the people with a focus on solving
their most concerned problems. In Hao Village, Xiaohe Town,
Hebi, Henan Province, Henan Branch’s assistant working Henan Branch “Care for Everyone, Warm
team stationed in the village helped vegetable farmers sell Every Family” Farmer Aiding Activities
slow-selling vegetables in Xun County through promotion and
purchase of local vegetables, solving their “urgent difficulties”.

Huaneng Luoyuan Power Plant Delivered Water to the Villagers of Bili

Since the earlier summer in 2022, continuous heat wave in
Luoyuan County has made the only village river in Lian’ao
Village, Bili Township dried up, and nearly 100 households in
the village have been in urgent need of domestic water. After
receiving the water supply request from the Bili Township
Government, Luoyuan Power Plant immediately sent fresh
water to Lian’ao Village, providing “showers after a long
drought” to the villagers who had been without water for
several days, effectively alleviating the problem of water
shortage among local villagers.
Luoyuan Power Plant Delivered Water
to the Villagers of Bili
 Environmental, social and governance report 2022 91

Guangxi Branch Supported Consumption Assistance

Guangxi Branch made use of the internal resources of the Company and encouraged the internal canteen to
purchase local products from key national assistance areas. The Company’s canteen purchased products from
Huanjiang County directly, while Guilin Branch’s canteen purchased products from Longsheng County directly,
employees and their families purchased products from the targeted assistance areas by the Company online,
and all members of the Company at different levels actively participated in consumption assistance.

Huaneng Yingkou Power Plant’s Education Assistance Activities

Boosted Rural Revitalization
Huaneng Yingkou Power Plant carried out education
assistance activities by organizing young volunteers to visit
the children in Gaizhou Lutun Ciai Orphanage and Anping
School in Bayu District prior to the holiday. They donated daily
necessities and anti-pandemic materials to orphanages and
donated daily necessities to 16 underprivileged students at
Anping School. In addition, Yingkou Power Plant leveraged
their advantage to carry out a volunteer teaching activity with
the theme of “warming hearts and supporting dreams”.

Yingkou Power Plant’s Volunteer Activities

at Anping School

Huaneng Pakistan Branch Made Donation to the Local Floods Disaster

In the summer of 2022, Pakistan was hit by severe floodings,
affecting one-third of the country’s population. Besides the
donation made by the Company, Huaneng Pakistan Branch
encouraged individual donations by its employees both in
China and Pakistan and delivered them to Pakistan’s “2022
Prime Minister’s Disaster Relief Fund” as soon as possible to
help the Pakistani people overcome difficulties caused by the
flooding and rebuild their homes.

Donations for the Flood Disaster in Pakistan

 Huaneng Power International, Inc.
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COMPETING IN OVERSEAS MARKET FOR FURTHER DEVELOPMENT

09
COMPETING IN
OVERSEAS MARKET
FOR FURTHER
DEVELOPMENT
Huaneng International successfully acquired 100% equity
in Singapore Tuas Power Ltd. (“Tuas Power”) in 2008.
Tuas Power is one of the three major power-generating
companies in Singapore and one of Singapore’s major
public utility and environmental service providers.
Environmental, social and governance report 2022 93
 Huaneng Power International, Inc.
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COMPETING IN OVERSEAS MARKET FOR FURTHER DEVELOPMENT

Competing in Overseas Market for Further Development

About Tuas Power
Tuas Power owns Tuas Power Station and Tembusu Multi-Utilities Complex (TMUC). In 2022, the cumulative electricity
market share of Tuas Power was 22.3%.

Tuas Power Station has been providing safe, reliable and efficient electricity supply to Singapore since 1999. The Station
currently has five units of gas-fired Combined Cycle Plants (CCP) in operation that contribute to the country’s electricity
demand at a highly-reliable performance of over 99%.

The Tembusu Multi-Utilities Complex commenced operation in 2013, and it serves the petrochemical industries in
the Tembusu area of Jurong Island. TMUC comprises a Biomass Clean-Coal (BMCC) cogeneration plant, seawater
desalination treatment plant and wastewater treatment plant, which provides different types of utilities – electricity, steam,
high-quality industrial water and demineralized water for industrial customers. In respect of steam supply, TMUC provides
a variety of pressure grades of steam to meet the differentiated needs of different customers while generating electricity.
This process is completed by steam turbine generator sets. This cogeneration process helps to further improve the
efficiency of the Tembusu thermal power plant.

Going beyond providing energy service, Tuas Power enlarged its operations to cover multi-utility, environmental, oil
terminals and storage and oil tank lease services – all of which utilized cutting-edge technologies and world-class
practices to power today’s industries.

Tuas Power emphasizes efficient and environmentally responsible energy solutions for modern business and industrial
needs. Tuas Power insists on conducting operations in an environmentally responsible manner by maximizing plant
efficiency, resource conservation, reducing waste and controlling emissions. The systems of both Tuas Power Station and
TMUC for the management and planning of its environment, occupational health and safety have obtained ISO 45001:
Occupational Health and Safety Management Systems in 2018, ISO 14001 (Environmental Management System) and ISO
50001 (Energy Management System) certification.

In 2022, Tuas Power had no reportable environment-related incidents. In the future, Tuas Power will continue to enhance
environmental protection and safeguard measures.

Energy Conservation
With the availability of natural gas and the development of combined cycle power plants, Tuas Power Station adopted
a strategic transformation to more energy-efficient and cleaner power generation. Since 2000, the Station started
developing combined cycle power plants and retired generator sets. The Station now owned five most advanced F-class
CCP generation units with an average efficiency of 48.5%. In 2019, TMUC launched the second phase of its digitalization
project to improve efficiency and reduce heat loss, which was completed in 2020. In 2021, work for the mitigation of
steam loss was initiated at TMUC. This was achieved by installing Hi-stop (live seal) adaptors at identified passing header
drains to prevent steam losses at steam traps and valves without shutting the LP header. 3 of these live seals were
installed in September 2021. The above initiatives further improved TMUC’s plant efficiency and energy conservation.
In 2022, TMUC renewed its ISO 14001, ISO 45001 and ISO 50001 certifications, which fully reflected the enterprise’s
unremitting efforts and achievements in implementing energy saving and compliance.

Tuas Power Station Tembusu Multi-Utilities Complex

 Environmental, social and governance report 2022 95

Tuas Power also uses well-tested and calibrated thermodynamic models to perform off-line heat balance calculations to
monitor the efficiency performance of each CCP unit. To minimize overall fuel consumption of the station, Tuas Power
developed a software named “Load Optimizer” to automatically calculate the load of each generator unit based on
the overall load requirement during a specific trading period and each CCP unit’s efficiency curve that is updated on a
monthly basis.

Emissions Management
Greenhouse Gas Management
In terms of greenhouse gas management, the carbon emission of the five units of CCP of Tuas Power Station is lower
than that of the national average of all power plants in Singapore. Tuas Power Station has commenced the CCP3 and
CCP4 Unit F upgrade project, which is expected to reduce carbon emissions by 19,500 tons per year. It is scheduled
to be carried out during the CCP4 Unit overhaul from November 2022 to January 2023 and the CCP3 Unit overhaul
from October to November 2023. The usage of 20% carbon-neutral biomass (Palm Shells & Woodchips) is a mandatory
requirement by the local authority to lower the carbon footprint of TMUC. By co-firing 80% coal with 20% carbon-
neutral biomass, TMUC has lowered the carbon emission and thus lowered the carbon tax. To remain competitive,
TMUC gradually increased the proportion of wood chips in its fuel mix. An increased usage of wood chips provided
greater flexibility for fuel mix ratio to maintain a higher percentage of carbon-neutral biomass fuel and reduce fuel costs.
In addition, mitigation measures that reduce energy losses from power plants or increase the power generation efficiency
of power plants can also help reduce greenhouse gas emissions. In accordance with the measurement and reporting
requirements for greenhouse gas emissions from Singapore’s National Environment Agency, Tuas Power and TMUC
submitted their plans and supporting documents for the measurement of greenhouse gas emissions to the Singapore
authorities and received approvals in December 2018. In 2022, Tuas Power and TMUC submitted their annual emission
reports based on these approved documents and paid the relevant carbon taxes accordingly.

Other Exhaust Gas Management

In terms of other exhaust gas management, Tuas Power Plant operated five units of natural gas-fired CCP generators to
achieve zero emission of Sulphur dioxide. TMUC reduces NOx and SO2 emissions by using advanced Circulating Fluidized
Bed (CFB) boilers and purchasing low-Sulphur low-ash coal. The low furnace temperature of the boilers and the use of
low-Sulphur low-ash coal have ensured a low NOx and low SO2 emission, utilization of high-efficiency bag filters at the
boilers has ensured the emission is within the compliance limit, which made TMUC able to meet the stringent air emission
limits set by the Air Impurities Regulation of the Singapore Environmental Protection and Management Act
.

Ash Recycling
In ash recycling, TMUC has achieved 100% comprehensive utilization of ash (fly ash and bed ash) by working together
with local building materials companies.
 Huaneng Power International, Inc.
96
COMPETING IN OVERSEAS MARKET FOR FURTHER DEVELOPMENT

Wastewater Management
In the case of water treatment, the TMUC project has established wastewater treatment facilities to treat the wastewater
produced internally and the wastewater generated by the petrochemical industry in compliance with relevant regulations.
To fully utilize the well-designed water cycle, customers are incentivized to return clean condensate for TMUC’s steam
production. High-temperature return condensate from the customers is used to pre-heat deaerator feed water to improve
efficiency. Boiler blowdown water is recycled back to the Water Treatment Plant as an alternative source of raw water.
Partially treated water from the wastewater treatment plant is being reused for plant washing in TMUC Site 2.

Customer Service
Since 2003, Tuas Power has been serving many groups of customers from residential customers, individual businesses,
to developers, landlords and tenants of commercial buildings. In a recent customer satisfaction survey by Singapore’s
Energy Market Authority, Tuas Power has been rated 4.5 stars (5 stars in total) since 2019.

Green Plan
Tuas Power has embarked on various initiatives in support of carbon emission reduction to address the challenges
posed by climate change and meet carbon reduction goals. Our initiatives include exploring and participating in importing
renewable energy and providing carbon-reduction solutions for customers, such as charging electric vehicles, solar
energy generation, energy efficiency improvements and Renewable Energy Certificates (RECs). In the future, Tuas Power
will continue its exploration for solutions such as hydrogen power generation.

Comprehensive Energy Management System

Tuas Power introduced a comprehensive energy management system in January 2016, with the implementation of
automated metering devices for commercial buildings. The meter can record electricity consumption on a half-hourly
basis in real-time for customers to review through a mobile application, enabling adjustment in energy usage to be
activated promptly. The system has also improved the efficiency and accuracy of billing to tenants. As of 2022, Tuas
Power had provided this service to more than 200 buildings and installed more than 8,000 electricity meters and related
infrastructure.

Customer Information Protection

In handling customer information, Tuas Power formed an agreement with contractors and suppliers to protect customer
information. Its own employees are subject to the related compliance trainings and the same requirements as the
contractors and suppliers and comply with the Company’s governance policies that protect customer information.
 Environmental, social and governance report 2022 97

Community Building
Tuas Power actively cooperated with Statutory Boards of the Singapore Government, charity organizations and non-profit
organizations to give back to the society through volunteer activities, funding public welfare and welfare organizations,
etc., and has established a good corporate culture and responsible corporate image. In 2022, Tuas Power provided funds
to charitable, voluntary and welfare organizations such as Metta Welfare Association, PCS Living Blood Centre, Food
From The Heart (FFTH), Garden City Fund, Power and Gas Industry Unions, Singapore Children’s Society, Focus on the
Family Singapore, Gardens by the Bay, The Straits Times Campus Subsidy Fund to help groups and families in need, and
support horticultural research and conservation to protect Singapore’s green environment.

Meanwhile, Tuas Power cooperated with the Ministry of Education (MOE), Energy Market Authority (EMA) and other
government organizations to provide funds to students from local universities and vocational and technical colleges. At
the Youth Event of Singapore Energy Week 2022, Liu Yanling, the Minister of Commerce and Industry and the Minister
of Culture, Community and Youth Affairs of Singapore, and the Tuas team had a discussion with two students winning
the EIS Scholarship sponsored by Tuas. The two scholarship recipients will join Tuas Power and Tuas Utility next year.
Scholarship activities help shape the Tuas brand and attract competent students to join the Company as interns or
graduates.

Digital Intelligence
Based on digital software such as power plant load optimizer, Tuas Power conducted unified blueprint design, step-
by-step implementation and promotion of the smart operation platform. Under the guidance of “consolidating the data
foundation, building key modules and establishing the unified platform”, Tuas Power promoted the development of an
information system following these three steps, and drove the lean management of overseas enterprises with digital
technology to effectively improve their overall economic efficiency and risk resistance capacity, which had strong reference
significance. At the same time, Tuas Power completed the management innovation project Development of Digital Lean
Management System for Power Generation Enterprises Oriented by Value Portfolio Optimization (
), which won the second prize in the Power Innovation Award issued by China
Electricity Council in 2022.

International Communication
There are frequent interactions and mutual assistance between Tuas Power and the Company. Staff from Tuas Power
and Huaneng regularly consult and discuss technical, production and engineering matters through online methods such
as virtual meetings to further improve and strengthen operational efficiency of the Tuas Power Station and TMUC. The
Company dispatched several management personnel to Tuas Power headquarters, Tuas Power Station and TMUC.
While working in Singapore, they provided local power plants with advanced management experience and professional
technical support of domestic power plants and benefited from cross-cultural work practices. Thanks to this, Tuas Power
has achieved cultural integration, management synergy and operational improvement at home and abroad.
 Huaneng Power International, Inc.
98
FORGING AHEAD TO THE FUTURE

FORGING AHEAD TO
THE FUTURE
 Environmental, social and governance report 2022 99

10 We look forward to the future and continuously accumulate experience

for long-term sustainable development. We forge ahead and make
sound development for a far-reaching success. The electric power
industry is closely related to national development and people’s
lives. Although it has existed for over a century, it is still vibrant. As a
responsible enterprise, we will continuously explore our potentials and
improve quality and efficiency. Facing the current co-existing situations
of both risks and opportunities, Huaneng International, has implemented
the Company’s development strategy whilst adhering to steady
progress, promoting transformation and upgrading, and actively carrying
out reforms and innovations.
 Huaneng Power International, Inc.
100
FORGING AHEAD TO THE FUTURE

Forging Ahead to the Future

By 2025, Huaneng International will complete the foundation of an electricity-centered and innovation-oriented modern
energy industry system with multi-energy synergy and global layout. With all major indicators reaching the advanced level
of peer energy enterprises worldwide, Huaneng International will become one of the world-class listed power generation
companies.

To promote green, low-carbon and circular development, we will promote the development of an integration of sources,
networks, loads and storage and the multi-energy complementary smart energy system. Sticking to the objectives of
“carbon peak” and “carbon neutrality”, we promote green and low-carbon energy transformation, and adhere to the
principle of “national overall planning, priority to conservation, dual-wheel drive, smooth cost alleviation mechanism, and
prevention of risks”. During the “14th Five-Year Plan” period, we will effectively reduce carbon emissions, strive to achieve
carbon peaks, and lay a solid foundation for carbon neutrality. On the one hand, we adopt renewable energy alternatives
and vigorously develop the new energy business to build a new power system with a large-scale wind power base as the
basis and the surrounding clean, efficient, advanced and energy-saving coal power plants as support. On the other hand,
we transform the development of coal power, prioritize gas and other clean energy power generation, actively deploy
pumped storage power generation to achieve an integration of sources, networks, loads and storage and the multi-
energy complementary development. By 2025, the Company’s installed capacity of low-carbon clean energy will account
for about 45%.

We will strengthen and improve the comprehensive energy services, actively adapt to the transformation of China’s
energy supply structure and continue to develop strategy-focused emerging industries through digitalization. To carry
out diversified supply and energy service transformation centered on core industries, we actively develop energy storage,
and participate in the demonstration of integrated green hydrogen industry of “production, storage, transportation and
utilization”.

Adhere to the new “dual circulation” development pattern, and the principle of “clean, benefit, steady”, the Company
will strengthen the international cooperation, relying on Tuas Power, to build the Company’s overseas innovation and
development platform. We will strengthen efficient operation of overseas assets, optimize the asset portfolio, and improve
the risk resistance and profitability of overseas assets.

To take the lead in scientific and technological innovation, support the high-quality development of the Company, we will
promote the high-quality science and technology innovation development, adhere to the strategy of serving the country,
adapt to the need of the Company development, adhere to the digital intelligent development, further enhance the
independent innovation ability and the implementation of demonstrative project of science and technology, and strengthen
the basic and forward-looking technology research.

The Company adheres to the orientation of promoting profitability, improving efficiency and creating value, works hard
to ensure the safety of production, conserve energy and improve efficiency, and protect the ecological environment. We
will strengthen and optimize major industries and improve industrial coordination. Focusing on the “one benefits and five
rates”15, the Company strives to improve quality and efficiency as well as deal with difficulties. The Company’s operational
vitality is enhanced, and its operational efficiency and other indicators reach the international advanced level.

15
One benefits and five rates: total profit, and asset-liability ratio, operating cash ratio, return on net assets, R&D investment
intensity and total labor productivity of all employees.
 Environmental, social and governance report 2022 101

11 Appendix
11.1 About this Report
This report is the seventh “Environmental, Social and Governance Report” ( ) released by
Huaneng International. This report focuses on the Company’s efforts and contributions to the environment, society and
governance, as well as our outlook for the future. We hope that through the publication of this report, we can strengthen
communication and liaison with our stakeholders.

The Board of Directors and all the Directors hereby warrant that the contents of this report do not contain any false
representations, misleading statements or material omissions and take joint and several liabilities for the authenticity,
accuracy and completeness of the contents.

The Scope of the Subject of this Report

Huaneng International and its domestic and overseas affiliated branches and its wholly owned and controlled companies.
Unless otherwise stated, the data disclosed in this report are about Huaneng International and its affiliated domestic
subsidiaries and its wholly-owned and controlled companies.

No major adjustments have been made to the disclosure scope hereof compared with that of the Company’s previous
ESG reports, and the statistical approaches adopted remains consistent.

Reporting Period
The Company’s “Environmental, Social and Governance Report” ( ) is an annual report for the
period from 1 January 2022 to 31 December 2022, and some of the statements and data are traced back to the previous
year.

Reference Remarks
In order to facilitate the presentation and be easy to read, “Huaneng Power International, Inc.” in this report is referred
to as “Huaneng International”, “the Company” or “we”. “China Huaneng Group Co., Ltd.” in this report is referred to as
“Huaneng Group” and “Group Company”.

Content Compiling
The contents of this report are prepared in the light of the HKEX’s “Environmental, Social and Governance Reporting
Guide” ( ), and the Global Reporting Initiative (GRI) Sustainability Reporting Standards (GRI
Standards) ( ). Currency used in this report is expressed in RMB unless otherwise specified.

Access to this Report

You can download the Chinese and English version of this report on Huaneng International’s website at http://www.hpi.com.cn.
This report is published in both Chinese and English. In case of any discrepancies among the different versions, the Chinese
version shall prevail. If you have any questions or suggestions, please call 010-63226582.
 Huaneng Power International, Inc.
102
APPENDIX

11.2 Statement of the Board of Directors

The Board of Directors assumes the overall responsibility for the Company’s ESG management and disclosure and holds
annual board meetings to discuss important ESG-related issues.

The strategy committee is in charge of supervising the Company’s comprehensive risk management. The Company
has incorporated safe production, environmental protection and other ESG material topics into the comprehensive risk
management assessment process. The strategy committee meets regularly every year to discuss assessment over the
comprehensive risk management. In 2022, the strategy committee deliberated on and approved the 2022 Comprehensive
Risk Management Report ( 2022 ), which comprehensively summarized safe production,
environmental protection and other ESG-related risks, and formulated detailed responses, with changes in material risks
closely tracked and monitored.

At the 2022 annual Board meeting, the Board emphasized the review of the assessment of ESG material topics,
the establishment of environmental targets, and the targets completion progress. The Company identified 18 ESG
reporting topics, including 6 material topics, i.e., Compliance with laws and regulations, Emissions Control, Energy Use,
Anti-Corruption, Clean and Sustainable Energy, Production safety and Occupational Health. The Company sets five
environmental performance targets in emission reduction, carbon reduction, waste reduction, energy saving and water
conservation, covering Emissions Management, Energy Consumption Management, and Water Resources Management.

2022 ESG Report provides detailed disclosure of the progress and key performance indicators in relation to the above
work and ESG topics. The report was reviewed and approved by the Board of Directors in March 2023.
 Environmental, social and governance report 2022 103

11.3 Contents Index of the Environmental, Social

and Governance (ESG) Reporting Guide by the
Hong Kong Stock Exchange
Environmental, Social and Governance Page
Report Content
Reporting Guide Number

Statement of the Board of Directors

• A disclosure of the Board’s oversight of ESG issues.

• A disclosure of the Board’s ESG management approach
and strategy, including the process used to evaluate,
prioritise and manage material ESG-related issue‑s 11.2 Statement of the Board of
102
(including risks to the issuer’s businesses). Directors
• A disclosure that how the board reviews progress made
against ESG-related goals and targets with an explanation
of how they relate to the issuer’s businesses.

Reporting Principles

Materiality: (i) the process to identify and the criteria for

the selection of material ESG factors; (ii) if a stakeholder 2.7 Communication with
engagement is conducted, a description of significant 17-19 Stakeholder and Identification
stakeholders identified, and the process and results of the of Material Issues
issuer’s stakeholder engagement.

Quantitative: Information on the standards, methodologies,

2.6 Table of Key Performance
assumptions and/or calculation tools used, and source of 12-16
Indicators
conversion factors used, for the reporting of emissions/energy 101
11.1 About this Report
consumption (where applicable) should be disclosed.

Consistency: The issuer should disclose in the ESG report any

changes to the methods or KPIs used, or any other relevant 101 11.1 About this Report
factors affecting a meaningful comparison.

Reporting Boundary

A narrative explaining the reporting boundaries of the ESG

report and describing the process used to identify which
entities or operations are included in the ESG report. If there is 101 11.1 About this Report
a change in the scope, the issuer should explain the difference
and reason for the change.
 Huaneng Power International, Inc.
104
APPENDIX

Environmental, Social and Governance Page

Report Content
Reporting Guide Number

Subject Area A: Environment

Aspect A1: Emissions

A1 General Disclosure 52-61 5.3.4 Emissions Management

2.6 Table of Key Performance

12-16
A1.1 The type of emissions and respective emission data. Indicators
52-61
5.3.4 Emissions Management

Direct (Scope 1) and energy indirect (Scope 2)

2.6 Table of Key Performance
greenhouse gas emissions (in tons) and, where 12-16
A1.2 Indicators
appropriate, intensity (e.g. per unit of production 52-61
5.3.4 Emissions Management
volume, per facility).

Total hazardous waste produced (in tonnes) 2.6 Table of Key Performance
12-16
A1.3 and, where appropriate, intensity (e.g. per unit of Indicators
52-61
production volume, per facility). 5.3.4 Emissions Management

Total non-hazardous waste produced (in tonnes) 2.6 Table of Key Performance
12-16
A1.4 and, where appropriate, intensity (e.g. per unit of Indicators
52-61
production volume, per facility). 5.3.4 Emissions Management

5.3.4 Emissions Management

Description of emission target(s) set and steps taken 52-61 9 Competing in Overseas
A1.5
to achieve them. 92-97 Market for Further
Development

5.3.4 Emissions Management

Description of how hazardous and non-hazardous
52-61 9 Competing in Overseas
A1.6 wastes are handled, and a description of reduction
92-97 Market for Further
target(s) set and steps taken to achieve them.
Development
 Environmental, social and governance report 2022 105

Environmental, Social and Governance Page

Report Content
Reporting Guide Number

Aspect A2: Use of Resources

5.3.2 Energy Consumption

46-50 Management
A2 General Disclosure
51-52 5.3.3 Water Resources
Management

Direct and/or indirect energy consumption by type 2.6 Table of Key Performance
(e.g. electricity, gas or oil) in total (kWh in ’000s) 12-16 Indicators
A2.1
and intensity (e.g. per unit of production volume, per 46-50 5.3.2 Energy Consumption
facility). Management

2.6 Table of Key Performance

Water consumption in total and intensity (e.g. per 12-16 Indicators
A2.2
unit of production volume, per facility). 51-52 5.3.3 Water Resources
Management

5.3.2 Energy Consumption

Management
Description of energy use efficiency target(s) set and 46-50
A2.3 9 Competing in Overseas
steps taken to achieve them. 92-97
Market for Further
Development

Description of whether there is any issue in sourcing

5.3.3 Water Resources
A2.4 water that is fit for purpose, water efficiency target(s) 51-52
Management
set and steps taken to achieve them.

Total packaging material used for finished products

Not applicable due to product
A2.5 (in tons) and, if applicable, with reference to per unit –
nature
produced.

Aspect A3: The Environment and Natural Resources

5 Transformation Development
A3 General Disclosure 40-63
Driven by Innovation

Description of the significant impacts of activities

5 Transformation Development
A3.1 on the environment and natural resources and the 40-63
Driven by Innovation
actions taken to manage them.

Aspect A4: Climate Change

5.3.4.2 Management of
A4 General Disclosure 56-57
Greenhouse Gas

Description of the significant climate-related issues

5.3.4.2 Management of
A4.1 which have impacted, and those which may impact, 56-57
Greenhouse Gas
the issuer, and the actions taken to manage them.
 Huaneng Power International, Inc.
106
APPENDIX

Environmental, Social and Governance Page

Report Content
Reporting Guide Number

Subject Area B: Social

Employment and Labour Practices

Aspect B1: Employment

7.1 Protecting Employees’ Rights

B1 General Disclosure 80-81
and Interests

Total workforce by gender, employment type

2.6 Table of Key Performance
B1.1 (for example, full- or part-time), age group and 12-16
Indicators
geographical region.

Employee turnover rate by gender, age group and 2.6 Table of Key Performance
B1.2 12-16
geographical region. Indicators

Aspect B2: Health and Safety

6 Ensuring Safety by Identifying

B2 General Disclosure 64-77 and Addressing Hidden
Hazard

2.6 Table of Key Performance

Number and rate of work-related fatalities occurred Indicators
12-16
B2.1 in each of the past three years including the 6 Ensuring Safety by Identifying
64-77
reporting year. and Addressing Hidden
Hazard

2.6 Table of Key Performance

B2.2 Lost days due to work injury. 12-16
Indicators

6.3 Implementing Safety

Description of occupational health and safety 71-75 Measures
B2.3 measures adopted and how they are implemented 75-76 6.4 Safeguarding Occupational
and monitored. 82-83 Health
7.3 Caring Employee Health
 Environmental, social and governance report 2022 107

Environmental, Social and Governance Page

Report Content
Reporting Guide Number

Aspect B3: Development and Training

6.5 Raising Employees’ Safety

76 Awareness
B3 General Disclosure
81-82 7.2 Promoting Employee
Development

The percentage of employees trained by gender and

2.6 Table of Key Performance
B3.1 employee category (e.g. senior management, middle 12-16
Indicators
management).

The average training hours completed per employee 2.6 Table of Key Performance
B3.2 12-16
by gender and employee category. Indicators

Aspect B4: Labour Standards

7.1 Protecting Employees’ Rights

B4 General Disclosure 80-81
and Interests

Description of measures to review employment 7.1 Protecting Employees’ Rights

B4.1 80-81
practices to avoid child and forced labour. and Interests

Description of steps taken to eliminate such 7.1 Protecting Employees’ Rights

B4.2 80-81
practices when discovered. and Interests

Operating Practices

Aspect B5: Supply Chain Management

8.1 Making Concerted Efforts to

B5 General Disclosure 86-88
Seek Common Development

2.6 Table of Key Performance

B5.1 Number of suppliers by geographical region. 12-16
Indicators

Description of practices relating to engaging

suppliers, number of suppliers where the practices 8.1 Making Concerted Efforts to
B5.2 86-88
are being implemented, and how they are Seek Common Development
implemented and monitored.

Description of practices used to identify

environmental and social risks along the supply 8.1 Making Concerted Efforts to
B5.3 86-88
chain, and how they are implemented and Seek Common Development
monitored.

Description of practices used to promote

environmentally preferable products and services 8.1 Making Concerted Efforts to
B5.4 86-88
when selecting suppliers, and how they are Seek Common Development
implemented and monitored.
 Huaneng Power International, Inc.
108
APPENDIX

Environmental, Social and Governance Page

Report Content
Reporting Guide Number

Aspect B6: Product Responsibility

28-31 4.1 Improving Capability of

B6 General Disclosure
Guaranteeing Energy Supply

Percentage of total products sold or shipped subject – Not applicable due to product
B6.1
to recalls for safety and health reasons. nature

8.2 Providing Quality Service

Number of products and service related complaints 89
B6.2 2.6 Table of Key Performance
received and how they are dealt with. 12-16
Indicators

Description of practices relating to observing and 4.2.3 Protection of Intellectual

B6.3 38-39
protecting intellectual property rights. Property Rights

Description of quality assurance process and recall Not applicable due to product
B6.4 –
procedures. nature

Description of consumer data protection and

Not applicable due to business
B6.5 privacy policies, and how they are implemented and –
nature
monitored.
 Environmental, social and governance report 2022 109

Environmental, Social and Governance Page

Report Content
Reporting Guide Number

Aspect B7: Anti-corruption

B7 General Disclosure 34-37 4.2.2 Anti-corruption

Number of concluded legal cases regarding corrupt

practices brought against the issuer or its employees
B7.1 34-37 4.2.2 Anti-corruption
during the reporting period and the outcomes of the
cases.

Description of preventive measures and whistle-

B7.2 blowing procedures, and how they are implemented 34-37 4.2.2 Anti-corruption
and monitored.

2.5 ESG Responsibility

Description of anti-corruption training provided to 9-11
B7.3 Management
directors and staff. 34-37
4.2.2 Anti-corruption

Community

Aspect B8: Community Investment

8.3 Creating a Better Society

90-91 9 Competing in Overseas
B8 General Disclosure
92-97 Market for Further
Development

8.3 Creating a Better Society

Focus areas of contribution (e.g. education,
90-91 9 Competing in Overseas
B8.1 environmental concerns, labour needs, health,
92-97 Market for Further
culture, sport).
Development

Resources contributed (e.g. money or time) to the

B8.2 90-91 8.3 Creating a Better Society
focus area.
 Huaneng Power International, Inc.
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APPENDIX

11.4 Contents Index of GRI Sustainability Reporting

Standards (GRI Standards) of Global Reporting
Initiative
GRI
Page
Standards GRI Standards Description Report Content
Number
Indicator

GRI 101: Foundation 2016

GRI 102: General Disclosures 2016

102-1 Name of the organisation 6-7 2.1 Company Profile

102-2 Activities, brands, products, and services 6-7 2.1 Company Profile

102-3 Location of headquarters 119 11.5 Readers’ Feedback

102-4 Location of operations 6-7 2.1 Company Profile

102-5 Ownership and legal form 6-7 2.1 Company Profile

102-6 Markets served 6-7 2.1 Company Profile

2.1 Company Profile

6-7
102-7 Scale of the organisation 2.6 Table of Key Performance
12-16
Indicators

7.1 Protecting Employees’ Rights

102-8 Information on employees and other workers 80-81
and Interests

8.1 Making Concerted Efforts to

102-9 Supply chain 86-88
Seek Common Development

Significant changes to the organisation and its

102-10 101 11.1 About this Report
supply chain

2.2 Corporate Governance

7
102-11 Precautionary principle or approach 2.5 ESG Responsibility
9-11
Management

2.5 ESG Responsibility

102-12 External initiatives 9-11
Management

2.7.1 Information about and

102-13 Membership of associations 17 Communication with
Stakeholder

102-14 Statement from senior decision-maker 2-3 1 Chairman’s Statement

 Environmental, social and governance report 2022 111

GRI
Page
Standards GRI Standards Description Report Content
Number
Indicator

Values, principles, standards, and norms of 7-8 2.3 Development Strategy

102-16
behaviour 8 2.4 Company Philosophy

102-18 Governance structure 7 2.2 Corporate Governance

2.7.1 Information about and

102-40 List of stakeholder groups 17 Communication with
Stakeholder

7.1 Protecting Employees’ Rights

102-41 Collective bargaining agreements 80-81
and Interests

2.7.1 Information about and

102-42 Identifying and selecting stakeholders 17 Communication with
Stakeholder

2.7.1 Information about and

102-43 Approach to stakeholder engagement 17 Communication with
Stakeholder

2.7.1 Information about and

102-44 Key topics and concerns raised 17 Communication with
Stakeholder

Entities included in the consolidated financial

102-45 101 11.1 About this Report
statements

102-46 Defining report content and topic boundaries 101 11.1 About this Report

2.7.2 Process of Identification of

102-47 List of material topics 18-19
Material Issues

No previous reports have been

102-48 Restatements of information –
rewritten

102-49 Changes in reporting – No major changes

102-50 Reporting period 101 11.1 About this Report

102-51 Date of most recent report 101 11.1 About this Report

102-52 Reporting cycle 101 11.1 About this Report

102-53 Contact point for questions regarding the report 101 11.1 About this Report

Claims of reporting in accordance with the GRI

102-54 – Core suitable plan
Standards
 Huaneng Power International, Inc.
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APPENDIX

GRI
Page
Standards GRI Standards Description Report Content
Number
Indicator

11.4 Contents Index of GRI

Sustainability Reporting
102-55 GRI content index 110-118
Standards (GRI Standards) of
Global Reporting Initiative

102-56 External assurance – No external review temporarily

2.1 Company Profile

Install capacity by primary energy and regulatory 6-7
EU1 2.6 Table of Key Performance
mechanism 12-16
Indicators

GRI 200 Economic

Economic Performance

GRI 103: Management Approach 2016

103-1 Explanation of the material topic and its boundary 4-21 2 About Us

103-2 The management approach and its component 4-21 2 About Us

103-3 Evaluation of the management approach 4-21 2 About Us

GRI 201: Economic Performance 2016

2.6 Table of Key Performance

12-16
201-1 Direct economic value generated and distributed Indicators
90-91
8.3 Creating a Better Society

Anti-Corruption (Material Issue: Management by Law and Anti-Corruption)

GRI 103: Management Approach 2016

2.7.2 Process of Identification of

18-19
103-1 Explanation of the material topic and its boundary Material Issues
34-37
4.2.2 Anti-corruption

103-2 The management approach and its component 34-37 4.2.2 Anti-corruption

103-3 Evaluation of the management approach 34-37 4.2.2 Anti-corruption

GRI 205: Anti-Corruption 2016

205-1 Operations assessed for risks related to corruption 34-37 4.2.2 Anti-corruption

Communication and training about anti-corruption

205-2 34-37 4.2.2 Anti-corruption
policies and procedures

Confirmed incidents of corruption and actions

205-3 34-37 4.2.2 Anti-corruption
taken
 Environmental, social and governance report 2022 113

GRI
Page
Standards GRI Standards Description Report Content
Number
Indicator

GRI 300 Environmental

Energy (Material Issues: Energy Use, Clean and Sustainable Energy)

GRI 103: Management Approach 2016

2.7.2 Process of Identification of

18-19 Material Issues
103-1 Explanation of the material topic and its boundary
40-63 5 Transformation Development
Driven by Innovation

5.1 Advancing the Energy

42-43 Revolution
103-2 The management approach and its component
44-45 5.2 Pursuing and Accelerating
Innovation

5.1 Advancing the Energy

42-43 Revolution
103-3 Evaluation of the management approach
44-45 5.2 Pursuing and Accelerating
Innovation

GRI 302: Energy 2016

5.3.2 Energy Consumption

302-1 Energy consumption within the organisation 46-50
Management

5.3.2 Energy Consumption

46-50 Management
302-3 Energy intensity
28-31 4.1 Improving capabilities of
guaranteeing energy supply

Water Resources and Sewage

GRI 103: Management Approach 2016

2.7.2 Process of Identification of

18-19 Material Issues
103-1 Explanation of the material topic and its boundary
51-52 5.3.3 Water Resources
Management

5.3.3 Water Resources

103-2 The management approach and its component 51-52
Management

5.3.3 Water Resources

103-3 Evaluation of the management approach 51-52
Management
 Huaneng Power International, Inc.
114
APPENDIX

GRI
Page
Standards GRI Standards Description Report Content
Number
Indicator

GRI 303: Water Resources and Sewage 2018

303-2 Management of impacts related to discharge 58 5.3.4.3 Wastewater Management

5.3.3 Water Resources

303-3 Water withdrawal by source 51-52
Management

303-4 Water withdrawal by destination 58 5.3.4.3 Wastewater Management

Emissions (Material Issues: Reduction of Carbon Dioxide Emission and Emission of Control
Components)

GRI 103: Management Approach 2016

2.7.2 Process of Identification of

18-19
103-1 Explanation of the material topic and its boundary Material Issues
52-61
5.3.4 Emissions Management

103-2 The management approach and its component 52-61 5.3.4 Emissions Management

103-3 Evaluation of the management approach 52-61 5.3.4 Emissions Management

GRI 305: Emissions 2016

5.3.4.2 Management of
305-1 Direct (Scope 1) Green house gas (GHG) emissions 56-57
Greenhouse Gas

5.3.4.2 Management of
305-2 Energy indirect (Scope 2) GHG emissions 56-57
Greenhouse Gas

5.3.4.2 Management of
305-4 GHG emissions intensity 56-57
Greenhouse Gas

Nitrogen oxides (NOx), sulphur oxides (SOx), and

305-7 53-55 5.3.4.1 Exhaust Gas Management
other significant air emissions

Effluents and Waste

GRI 103: Management Approach 2016

2.7.2 Process of Identification of

18-19
Material Issues
103-1 Explanation of the material topic and its boundary 58
5.3.4.3 Wastewater Management
59-61
5.3.4.4 Waste Management

58 5.3.4.3 Wastewater Management

103-2 The management approach and its component
59-61 5.3.4.4 Waste Management

58 5.3.4.3 Wastewater Management

103-3 Evaluation of the management approach
59-61 5.3.4.4 Waste Management
 Environmental, social and governance report 2022 115

GRI
Page
Standards GRI Standards Description Report Content
Number
Indicator

GRI 306: Effluents and Waste 2016

306-1 Water discharge by quality and destination 58 5.3.4.3 Wastewater Management

306-2 Waste by type and disposal method 59-61 5.3.4.4 Waste Management

Environmental Compliance (Material Issues: Energy Use, Emission of Control Components and
Reduction of Carbon Dioxide Emission)

GRI 103: Management Approach 2016

2.7.2 Process of Identification of

18-19 Material Issues
103-1 Explanation of the material topic and its boundary
46-63 5.3 Actively Practicing Low-
Carbon Operation

5.3 Actively Practicing Low-

103-2 The management approach and its component 46-63
Carbon Operation

5.3 Actively Practicing Low-

103-3 Evaluation of the management approach 46-63
Carbon Operation

GRI 307: Environmental Compliance 2016

Non-compliance with environmental laws and 5.3 Actively Practicing Low-

307-1 46-63
regulations Carbon Operation

Supplier Environmental Assessment

GRI 103: Management Approach 2016

2.7.2 Process of Identification of

18-19 Material Issues
103-1 Explanation of the material topic and its boundary
86-88 8.1 Making Concerted Efforts to
Seek Common Development

8.1 Making Concerted Efforts to

103-2 The management approach and its component 86-88
Seek Common Development

8.1 Making Concerted Efforts to

103-3 Evaluation of the management approach 86-88
Seek Common Development

GRI 308: Supplier Environmental Assessment 2016

Negative environmental impacts in the supply chain 8.1 Making Concerted Efforts to
308-2 86-88
and actions taken Seek Common Development
 Huaneng Power International, Inc.
116
APPENDIX

GRI
Page
Standards GRI Standards Description Report Content
Number
Indicator

GRI 400 Social

Occupational Health and Safety (Material Issue: Safe Production and Occupational Health)

GRI 103: Management Approach 2016

2.7.2 Process of Identification of

Material Issues
18-19 6.4 Safeguarding Occupational
75-76 Health
103-1 Explanation of the material topic and its boundary
76 6.5 Raising Employees’ Safety
77 Awareness
6.6 Strengthening Infrastructure
Security

6.4 Safeguarding Occupational

Health
75-76
6.5 Raising Employees’ Safety
103-2 The management approach and its component 76
Awareness
77
6.6 Strengthening Infrastructure
Security

6.4 Safeguarding Occupational

Health
75-76
6.5 Raising Employees’ Safety
103-3 Evaluation of the management approach 76
Awareness
77
6.6 Strengthening Infrastructure
Security

GRI 403: Occupational Health and Safety 2018

Hazard identification, risk assessment and incident 6.4 Safeguarding Occupational

403-2 75-76
investigation Health

Prevention and mitigation of occupational health

6.4 Safeguarding Occupational
403-7 and safety impacts directly related to business 75-76
Health
relationship

2.6 Table of Key Performance

403-9 Occupational injury 12-16
Indicators
 Environmental, social and governance report 2022 117

GRI
Page
Standards GRI Standards Description Report Content
Number
Indicator

Training and Education (Material Issue: Staff Training and Development)

GRI 103: Management Approach 2016

2.7.2 Process of Identification of

18-19 Material Issues
103-1 Explanation of the material topic and its boundary
81-82 7.2 Promoting Employee
Development

7.2 Promoting Employee

103-2 The management approach and its component 81-82
Development

7.2 Promoting Employee

103-3 Evaluation of the management approach 81-82
Development

GRI 404: Training and Education 2016

Programs for upgrading employee skills and 7.2 Promoting Employee

404-2 81-82
transition assistance programs Development

Child Labour

GRI 103: Management Approach 2016

2.7.2 Process of Identification of

18-19 Material Issues
103-1 Explanation of the material topic and its boundary
80-81 7.1 Protecting Employees’ Rights
and Interests

7.1 Protecting Employees’ Rights

103-2 The management approach and its component 80-81
and Interests

7.1 Protecting Employees’ Rights

103-3 Evaluation of the management approach 80-81
and Interests

GRI 408: Child Labour 2016

Operations and suppliers at significant risk for 7.1 Protecting Employees’ Rights
408-1 80-81
incidents of child labour and Interests
 Huaneng Power International, Inc.
118
APPENDIX

GRI
Page
Standards GRI Standards Description Report Content
Number
Indicator

Forced or Compulsory Labour

GRI 103: Management Approach 2016

7.1 Protecting Employees’ Rights

103-1 Explanation of the material topic and its boundary 80-81
and Interests

7.1 Protecting Employees’ Rights

103-2 The management approach and its component 80-81
and Interests

7.1 Protecting Employees’ Rights

103-3 Evaluation of the management approach 80-81
and Interests

GRI 409: Forced or Compulsory Labour 2016

7.1 Protecting Employees’ Rights

Operations and suppliers at significant risk for 80-81 and Interests
409-1
incidents of forced or compulsory labour 86-88 8.1 Making Concerted Efforts to
Seek Common Development

Supplier Social Assessment

GRI 103: Management Approach 2016

2.7.2 Process of Identification of

18-19 Material Issues
103-1 Explanation of the material topic and its boundary
86-88 8.1 Making Concerted Efforts to
Seek Common Development

8.1 Making Concerted Efforts to

103-2 The management approach and its component 86-88
Seek Common Development

8.1 Making Concerted Efforts to

103-3 Evaluation of the management approach 86-88
Seek Common Development

GRI 414: Supplier Environmental Assessment 2016

Negative social impacts in the supply chain and 8.1 Making Concerted Efforts to
414-2 86-88
actions taken Seek Common Development
 Environmental, social and governance report 2022 119

11.5 Readers’ Feedback

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