About CMEC

Transcription

About CMEC

2
Social Responsibility Report
China Machinery Engineering Corporation
2013
2013
Report Summary
> Compilation Conformance
> Report Schedule
This Report is prepared in compliance with Guidelines to the State-owned
The schedule of this report ranges from January 1, 2013 to December
Enterprises Directly under the Central Government on Fulf illing Corporate
31, 2013, with some contents and data appropriately dating back to
Social Responsibilities issued by the State-owned Assets Supervision and
earlier years.
Administration Commission of the State Council (SASAC), and refers to the
Sustainabilit y Reporting Guidelines (Version G3.1) of the Global Reporting
Initiatives (GRI), ISO260 0 0: Guidance on Social Responsibilit y (2010) by
> Release Cycle
International Organization for Standards, as well as Guidelines on Corporate
This report is on an annual base and it's the first social responsibility
Social Responsibility Reporting for Chinese Enterprises (CASS-CSR3.0), Social
report that has been released by China Machinery Engineering
Responsibilit y f or Chinese International Contrac tor s release d by China
Corporation.
International Contractors Association.
> Report Data
> References to CMEC
The data of this Report is from CMEC's annual report in 2013, and the other formal
For convenience of expression and reading, China Machinery
documents and statistics.
Engineering Corporation herein refers to "CMEC", "the Company" and
"We".
> Report Access
This Report is made both in Chinese and English, and available in paper and online
versions. If you need a paper version, please send an e-mail to csr@mail.cmec.com
> Report Scope
or call +86-10-63312002. If you need an online version, please visit CMEC's website
This report is about China Machinery Engineering Corporation (see
at www.cmec.com, or just scan the QR code to download.
"About Us" for Organization Structure).
> Report Process
● Guidelines on Corporate Social Responsibility Reporting for Chinese Enterprises (CASS-CSR3.0)
● ISO26000:
Guidance on Social Responsibility (2010)
Information
Gathering
CMEC, Wholly Owned and Holding
Companies Providing Information
External Stakeholders, Feedback
● Substantiality
● Sustainability Reporting Guidelines
(Version G3.1)
Report
Internal Auditing
Report
Preparation
and Improvement
Release
Communication
and Feedback
● Sustainable Development Background
● Integrity
● Participation of Stakeholders
（Should there be any discrepancy between the Chine and English versions of this report, the Chinese version shall prevail.）
3
Responsibility
M a n ag e m e n t
V
Ab
ue
al
CM
EC
ou
CONTENT
tC
ME
C
Q u al
it y C
ME
C
01
02
03
MEC
C
n
e
05
06
G re
04
07
H
ar
m
C
ME
yC
on
S
08
Chairman's Message
02
President's Message
04
The Column of Responsibility
06
About CMEC
10
1.1 About Us
10
1.2 Corporate Governance
13
1.3 Development Strategy
15
Responsibility Management
16
2.1 Organization System
16
2.2 Responsible Communications
16
2.3 Essential Issues Identification
17
2.4 The Stakeholders
18
2.5 Honors and Recognitions
19
Value CMEC
20
3.1 Compliance Operation
22
3.2 Promoting Diversification
23
3.3 Enhancing Sustainability Capability
26
Quality CMEC
28
4.1.Building High-quality Projects
30
4.2.Building Responsible Supply Chain
33
Green CMEC
36
5.1 Practicing Environmental Management
38
5.2 Establishing Green Projects
39
5.3 Actively Tackling Climate Change
40
Safe CMEC
44
6.1 Safety Production Management System
46
6.2 Emphasizing on Safety Training
46
6.3 Implementation of Safety Inspection
49
6.4 Safety Emergency Management
49
Happiness CMEC
50
7.1 Safeguard Rights and Interests of Employees
52
7.2 Facilitate Career Development
54
7.3 Balance Work and Life
56
7.4 Care for Employees
58
Harmony CMEC
60
8.1 Improve People’s Livelihood
62
8.2 Promote Employment
64
8.3 Active Involvement in Charity
66
Outlook70
Expert Comment
72
Reporting Index
73
Feedback Form
75
Happiness CMEC
af
e
CM
EC
Chairman's Message
Chairman Sun Bai
Integrating Social Responsibility into
CMEC's Development Genes
The sustainable development becomes a common
led China's power energy, rail transit and the electronic
on its third Plenary Session of the 18th Communist
to share the development of the company. We keep the
topic of every country all around the world due to a
communications equipment to the international market,
Party of China Central Committee, which makes social
commitments that we made to the community which
series of global problems including climate change,
cultivated a large number of extroverted talents for
responsibility rising to national strategic level. In 2013,
means that we consider our company as an important
energy crisis, and the growing gap between rich and
the industry, and pushed forward the development
CMEC has constituted a new development strategy which
role of the local community, launch localized operation
poor are getting serious. As a corporate citizen, CMEC
of China's equipment manufacturing by means of
clearly integrates social responsibility into its corporate
and develop social responsibility projects that suitable
realizes that no company can only focus on its own
international engineering project contracting and
development strategy. In our view, the earlier awareness
for local people and enterprises in order to promote the
growth and attend its own benefits in the wave of
international trade. Meanwhile, basing on the life of
of social responsibility from a strategic height, the more
economic and social development of the community.
globalization while ignore the social and environmental
the local people and the needs of social development,
likely the company is to achieve from "good" to "great".
Pursuing dreams for 35 years made CMEC a role
factors which are related to it closely. Therefore, CMEC
CMEC also has promoted the economic and social
This requires that we think about social responsibility
model in the industry. In the future, we will continue to
integrates social responsibility into its development, and
development by contracting the construction of
more globally and strategically, and incorporates it into
promote our company's philosophy of "Create Ideas,
provides innovative solutions for the economic, social
infrastructure worldwide. The power plants and
every step of the company's development.
Achieve Dreams", and integrate social responsibility
and environmental issues using its core competence.
transmission lines built by CMEC bring light and power
Resp onding to and meeting t he st akeholder s'
int o C M EC ' s var i e d, inc lus i ve an d inn ovat i ve
In the process of globalization, we are aware that
to local people all over the world; the transportation
expectations and demands ensures the growth of the
corporate culture. Meanwhile, we will work closely
responsible and excellent corporation can always
infrastructure facilitates local people's travel; the
company. We keep the commitments that we made
with our stakeholders, strive to become a world class
integrate their business development with social
communications facilities make it much easier for
to the environment which is integrating environmental
international engineering contracting and services
needs and discover business oppor tunities from
people to reach each other; the broadcasting & TV
protection into the full life cycle of our business. We
provider. In addition, we will try out best to improve the
them. In the past 35 years, based on the national and
center help to improve the quality of people’s life.
keep the commitments that we made to our employees
quality of people's life and build a better world.
industry development needs, CMEC has promoted the
The Communist Party of China made clear requirements
which includes creating a healthy and happy working
technology progress of China's machinery industry,
about corporation’s implementation of social responsibility
environment that everybody can show talent and able
Chairman: Sun Bai
President's Message
sense of responsibility for the entire value chain in
a varied training and development platform to increase
order to provide customers with sincere products and
the employees’ capabilities and professionalism. With
services. In December 2012, CMEC's EREN (1+1) x
fully trust and respect of each employee, CMEC tries
600MW Supercritical Coal-fired Power Plant in Turkey
to establish a stage for employees to demonstrate
won Luban Award (Overseas Projects), making it the
their talent and achieve their values.
first coal-fired power plant to win the prize.
Dedicated to the development of local community.
Building the green life together. CMEC is always
CMEC is always in pursuit of localized operations with
CMEC Takes its Responsibilities and Makes
Contributions to the Whole World
dedicated to protecting the ecological environment
respect of the local culture and religions. We improve
and integrating the environmental protection into its
local infrastructures and the conditions of service for
full life-cycle of products and services. We advocate
medical and education. We also actively participate in
C u r r e nt l y, t h e c l o s e c o m b i n a t i o n o f I nte r n et ,
on compliance operations. In 2013, CMEC’s revenue
green construction and build green projects to avoid or
the disaster relief to help the local people's livelihood.
new materials and new energy is quietly fueling
stood at RMB21.426 billion, up 0.6% year on year, and
minimize the impacts on the surrounding environment
In 2010, CMEC was awarded the "China-Africa
the profound economic, social and business
its net profit reached RMB1.96 billion, an increase of
and reduce greenhouse gas emissions to cope with
Friendship Award — Top 10 Chinese Enterprises that
transformations. CMEC pays close attention to and
1.7% compared to the same period of 2012. CMEC
climate change.
Moved Africa".
engages itself in the new energy field while integrates
also successfully reached the markets in Canada,
Building a safe CMEC. In CMEC, we are dedicated to
This Social Responsibility Report is the first one
the social transformation with its own business
Papua New Guinea, Mongolia, Jordan and Kenya
put our employees first and build a three-party safety
that CMEC has published, from which we sincerely
competence. CMEC has achieved its sustainable and
the first time which has further broadened CMEC's
management system comprising of the company,
hope that you can understand CMEC's efforts in
healthy development relying on innovation of science
business globally.
owners and subcontractors. In order to build a safe
the process of promoting sustainable development.
and technology, management and system which
Providing Sincere services. CMEC provides one-
CMEC, we strictly implement the safety production
Social responsibility is a never-ending process of
improvement. In the future, we will take this Social
President Zhang Chun
explore the more intensive, sustainable, natural and
stop customized and integrated engineering project
responsibility system, enhance safety measures, and
ethical production methods.
solutions for customers thanks to its unique capacity
organize safety awareness and skills trainings, foster
Responsibility Report as the starting point of fulfilling
Creating long-lasting value. 2013 was the first year that
of marketing, innovative management, as well as
safety culture. In 2013, CMEC and its subcontractors
our company's social responsibility, as well as promote
CMEC listed in the Hong Kong Stock Exchange, in this
integrated industrial chain and business collaboration.
have not occurred any general or more serious
management and enhance core competitiveness
year, our goal was accelerating market development,
We always do marketing responsibly and provide
production safety accidents.
responding to new social challenges. Furthermore,
innovating business models, implementing the risk
customers with quality projects which are full of local
Making employees life happy and colorful. CMEC
we will strive to be the leading contractor and service
management and control system effectively, and
characteristics. We also extend our services and
e n s u r e s i t s e m p l oye e s h av i n g a h e a l t hy a n d
provider of international engineering and make
continuously improving core competence. In order
provide after-sales guarantees. In addition, we work
comfortable working environment, and makes efforts
contributions to the sustainable development of
to achieve the target, we were led by strategic
closely with our partners to build a mutually beneficial
to balance the employees’ work and life, therefore, the
society.
planning, focused on management as well as based
and win-win strategic partnership, and increase the
employees’ life can be more colorful. CMEC has built
President: Zhang Chun
6
2013
CMEC was established in 1978 right at the beginning of
China’s reform and opening up period. After painstaking efforts for 35 years, CMEC has developed into a large-scale
international enterprise integrating engineering contracting
as its core business and taking trade, R&D, and international
service as its major business which is a combination of industry and trade as well as technology and trade, it also has become the world-renowned and China’s leading international
engineering contractor.
In 35 years, CMEC has always been in step with China’s
reform and opening up. Meanwhile, the development of
CMEC is a perfect reflection of China and China’s machinery industry’s 35 years of reform and opening up. If the most
distinctive feature of CMEC’s development is business innovation, the most outstanding achievement is fast and highquality development, then the inexhaustible drive behind it is
taking responsibility and the unique corporate culture is the
spiritual source of its great achievement.
In 35 years, equipped with its philosophy of “Create Ideas,
Achieve Dreams” and its mission of “Enhance the quality of people’s life”, CMEC is dedicated to bring mutual
benefits to stakeholders, making common development
and harmonious progress with them, also built landmark
projects all over the world as a proof of friendship. As an
1978
1980
1982
1984
1986
international and specialized company, CMEC has always been bearing the sense of responsibility in mind,
fulfilling its social responsibility firmly. The power plants
built by CMEC bring light and power to local people all
over the world; the transportation infrastructure facilitates
local people’s travel; the communications facilities make
it much easier for people to reach each other; the broadcasting & TV center bring rich and colorful entertainment
to people; the donated elementary school in poor area
sown the seeds of hope to children; the donation to disaster-hit zone bring warm to people rebuild home. Bearing
responsibility in mind, we will continue to repay society by
bring benefits to local residents.
Just because of the sense of responsibility, the generations of CMEC employees have demonstrated their courage facing challenges, boldness being pioneers, spirit of
dedication, heroism of making home everywhere, image
of self-respect and professionalism, quality of being integrity, working style of sincere cooperation, working attitude of pragmatic and cautious which has gained national
and international acclaim for them. Working hard and being wisdom of these employees has not only achieved
dreams for CMEC, but also established CMEC as a wellknown international brand.
1988
1990
1992
1994
1996
The Establishment of CMEC
The Development Period of CMEC
1978-1988
1988-1997
Originated from Responsibility
At the beginning of the reform and opening up, in order to
promote the development of China's machinery industry and
Its Responsibility Extended to the
Other Countries
After the Foreign Trade System being reformed, CMEC transformed
from a management-type enterprise into an operating entity which
the expansion of import and export of mechanical and electrical
operated independently and responsible for its own profit and loss,
products, CMEC was established as a window for other
its core business also shifted from international trade to international
countries to do business and became China's first engineering
and trade enterprise. The establishment of CMEC originated
from responsibility. Through the export of electromechanical
products, CMEC succeeded in bringing China's power, heavy,
transportation and electronic communication equipments to the
international market which has improved the competitiveness of
China's machinery and electronics products, also provided more
cost effective products for the world. With CMEC's introduction
of advanced manufacturing technology and equipments from
abroad, the integration of China's equipment manufacturing
industry into the international practice has been accelerated.
engineering contracting gradually. In 1994, the China Machinery and
Equipment Import and Export Corporation established, CMEC started
to development toward collectivize, diversified and internalization. With
its business development, CMEC emphasize on social responsibility
gradually extending to overseas. CMEC brought "source for light, source
for life, and source for development" by the construction of high quality
projects, operation localized and contribution to the community in the
other countries. The life conditions of local people had been improved
greatly as well as the local economic and social development. CMEC
gained huge international influence and brand visibility. After China
National Machinery Industry Corporation (SINOMACH) was established
in 1997, CMEC entered the group family of SINOMACH.
2013
Being Responsible for 35 Years,
and Being Pioneers in the World
1998
2000
2002
2004
2006
2008
2010
When CMEC Listed in Hong Kong
Stock Exchange Leaped Forward
1997-2012.12
2012
2014
...
Transformation
2013 to Date
Responsibility Led the Way
Responsibilities Implanted
CMEC marched into a period of rapid development after joined
the China National Machinery Industry Corporation. As China's
economic system reform deepened, CMEC also headed toward the
direction of separation of enterprise management from government
administration, clearly established ownership, independent
operation, and scientific management. After several restructuring,
CMEC consolidated and enhanced its core competitiveness and
became the leader of the industry. During this process, CMEC
formed its unique business model of "Light asset, High return",
improved management, paid attention to its internationalized
and diversified talent pool as well as provided an open work
environment for employees. Meantime, CMEC established
the "qualit y, environment, occupational health and safet y"
management system, paying attention to environmental protection
and production safety while building first-class projects. CMEC
established an image as a good corporate citizen.
In 2013, CMEC developed its strategic development plan for
the next five years which placed fulfilling social responsibility
as one of the important drives to help achieve our vision as "the
global leading international engineering contractor and service
provider".
7
8
"China's First" Records Set by CMEC
Found in 1978, CMEC is the first large-scale engineering and trade company in
China;
In 1983, CMEC undertook the first 210MW Oil-fired Generating Unit for Guddu
Thermal Power Station in Pakistan with the seller's export credit, marking the first
export of home-made large thermal power generating unit;
In 1991, CMEC exported, designed- and installed the first complete equipment for
float glass factory with daily melting capacities of 500 tons;
In 1992, CMEC brought China's first Oil/Gas-fired Thermal Power Plant Unit and a
320MW Thermal Power Plant Unit to the international market (Pakistan);
In 1999, CMEC exported China's 0.21 million Lines Digital Telephone Exchange to
Bangladesh for the first time;
In 2001, CMEC exported China's first High-Tech Remote-Controlled Integrated
Static Meter Units in Bulk to the Europe (Italy);
In 2003, CMEC created oil guarantee repayment breaking the pattern of bank
guarantees and sovereignty guarantees (Angola, Congo-Brazzaville);
In 2004, CMEC established the first 4x30MW Hydropower Plant in Africa (CongoBrazzaville);
In 2004, CMEC constructed a National Broadcasting & TV Center in Africa for the
first time (Gabon);
In 2007, CMEC brought the first made in China 600MW Supercritical Coal-fired
Power Generation Units into the international market (Turkey);
In 2008, CMEC worked as the general contractor of a large Urban Drinking Water
Treatment Plant for the first time in Africa (Congo-Brazzaville);
In 2010, CMEC completed the world's first Combined-Cycle Power Plant with a
Dual-Fuel 6FA Gas Turbine Unit in Pakistan;
In 2012, CMEC exported China's 600MW Supercritical Oil-fired Power Unit to
South America for the first time (Venezuela);
In 2013, CMEC's EREN (1+1) x 600MW Supercritical Coal-fired Power Plant in Turkey won
Luban Award (Overseas Projects) — the first coal-fired power plant to win the prize.
2013
2013
9
10
2013
11
2013
01 About CMEC
1.1 About Us
Founded in 1978, China Machinery Engineering Corporation (CMEC) is
the first large engineering & trade company in China. CMEC was built
on its predecessor China National Machinery & Equipment Import &
Export Corporation through an overall reorganization, and a member
格陵兰
GREENLAND
of China National Machinery Industry Corporation. On December 21st,
2012, CMEC was listed in the Hong Kong Stock Exchange (the stock
name is China Machinery Engineering Corporation and the stock code
is 1829HK). With headquarter in Beijing, CMEC has 24 affiliates in the
Mainland of China, 12 affiliates in the Hong Kong Special Administrative
Region (Hong Kong SAR) and foreign countries.
美
国
拿
挪威
NORWAY
大
英国
UNITED KINGDOM
CANADA
温哥华
VANCOUVER
美
国
UNITED STATES
洛杉矶
LOS ANGELES
芝加哥
CHICAGO
渥太华
OTTAWA
多伦多
TORONTO
involve a broad range of areas such as electronic power, transportation,
太平洋
PACIFIC OCEAN
多米尼加共和国
DOMINICAN REPUBLIC
伯利兹
萨尔瓦多
波多黎各
海地
牙买加
BELIZE
EL SALVADOR
HAITI PUERTO RICO
JAMAICA
洪都拉斯
巴巴多斯
尼加拉瓜
HONDURAS
BARBADOS
NICARAGUA
特立尼达和多巴哥
委内瑞拉
哥斯达黎加
VENEZUELA TRINDAD AND TOBAGO
COSTA RICA 巴拿马
PANAMA
哥伦比亚
COLOMBIA
秘鲁
PERU
圭亚那
GUYANA
南美洲
SOUTH AMERICA
玻利维亚
BOLIVIA
巴西
BRAZIL
圣保罗
33.8%
29.9%
22.3%
亚洲 Africa
非洲 Europe
欧洲
Asia
5,195.7百万元
million
4,605.7百万元
million
巴拉圭 SAO PAULO
PARAGUAY
14.0%
南美洲
South America
3,428.8百万元
million
俄
罗
斯
RUSSIA
拉脱维亚
LATVIA
立陶宛
德国 LITHUANIA
白俄罗斯
波兰
GERMANY
荷兰
POLAND BELARUS
比利时
NETHERLANDS
捷克
BELCIUM
乌克兰
CZECHIA
卢森堡
UKRAINE
LUXEMBOURG
匈牙利
哈萨克斯坦
法国
蒙古
KAZAKHSTAN
奥地利 HUNGARY
FRANCE 瑞士
AUSTRIA
MONGOLIA
罗马尼亚
SWITZERLAND
ROMANIA
克罗地亚
乌兹别克斯坦
格鲁吉亚
CROATIA
UZBEKISTAN
保加利亚 GEORGIA
塞尔维亚
意大利
BULGARIA
吉尔吉斯斯坦
SERBIA
土耳其
ITALY
KYRGYZSTAN
北京
西班牙
阿塞拜疆
土库曼斯坦
葡萄牙
TURKEY
BEIJING
AZERBAIJAN TURKMENISTAN
PORTUGAL SPAIN
中国
希腊
韩国
黎巴嫩
郑州
CHINA
GREECE 塞浦路斯
阿富汗
马耳他
ZHENGZHOU
CYPRUS
KOREA
日本
LEBANON
无锡
AFGHANISTAN
MALTA
南京
WUXI
巴基斯坦
JAPAN
以色列
上海
NANJING
伊拉克
SHANGHAI
ISRAEL
PAKISTAN
武汉
苏州
摩洛哥
约旦 IRAQ 科威特
巴勒斯坦
阿尔及利亚
WUHAN
SUZHOU
MOROCCO
KUWAIT
ALGERIA
利比亚 PALESTINIAN JORDAN
尼泊尔
长沙
埃及
LIBYA
巴林卡塔尔
CHANGSHA
NEPAL
EGYPT
福州
BAHRAIN QATAR
FUZHOU
阿联酋
深圳
老挝 SHENZHEN 香港
孟加拉国
UNITED ARAB
Hong Kong
沙特阿拉伯
印度
LAOS
EMIRATES
BABGLADESH
SAUDI ARABIA
毛里塔尼亚
INDIA
越南
阿曼
MAURITANIA
泰国 VIETNAM
OMAN
尼日尔
THAILAND
NIGER
佛得角
缅甸
塞内加尔
也门
贝宁
CAPE VERDE
菲律宾
MYANMAR
SENEGAL
YEMEN
BENIN
尼日利亚
PHILIPPINES
柬埔寨
几内亚
NIGERIA
多哥
CAMBODIA
塞拉利昂
斯里兰卡
GUINEA
TOGO
埃塞俄比亚
SIERRA LEONE
SRI LANKA
ETHIOPIA
加纳
喀麦隆
利比里亚
文莱
马来西亚
CAMEROON
LIBERIA 科特迪瓦 GHAMA
BRUNEI
MALAYSIA
THE IVORY COAST
赤道几内亚
新加坡
肯尼亚
EQUATORIAL GUINEA
SINGAPORE
刚果（布）
KENYA
加蓬
CONGO(BRAZZAVILLE)
GABON
塞舌尔
巴布亚新几内亚
刚果（金）
SEYCHELLES
PAPUA NEW GUINEA
CONGO(KINSHASA)
印度尼西亚
INDONESIA
安哥拉
ANGOLA
马拉维
赞比亚
MALAWI
马达加斯加
ZAMBIA
MADAGASCAR
毛里求斯
津巴布韦
纳米比亚
MAURITIUS
ZIMBABWE
留尼汪
NAMIBIA
REUNION
博茨瓦纳
澳大利亚
BOTSWANA
AUSTRALIA
洲
ASIA
纽约
NEW YORK
厄瓜多尔
ECUADOR
欧
洲
爱沙尼亚
ESTONIA
EUROPE
丹麦
DENMARK
亚
墨西哥
MEXICO
contracting and international trade in general. The contracting business
芬兰
FINLAND
爱尔兰
IRELAND
北美洲
NORTH AMERICA
Currently, CMEC has extended its business reaching to more than
150 countries and regions in the fields of international engineering
environmental protection, mining and resource exploration.
瑞典
SWEDEN
加
Originated from China's first engineering and trade company, CMEC
evolved into an international conglomerate taking engineering
contracting as its core business and integrating trade, R&D, and
international service. As a world-renowned engineering contractor,
CMEC has been ranked among China's top 10 contractors by the
business turnover from overseas contracted projects by Ministry of
Commerce of the People’s Republic of China for many consecutive
years.
electronic communications, housing & architecture, plant construction,
冰岛
ICELAND
UNITED STATES
智利
CHILE
2,155.4百万元
million
乌拉圭
URUGUAY
太平洋
PACIFIC OCEAN
非
洲
AFRICA
大
洋洲
OCEANICA
大西洋
ATLANTIC OCEAN
印度洋
INDIAN OCEAN
斐济
FIJI
瓦努阿图
VANUATU
南非
SOUTH AFRICA
开普敦
CAPTOWN
新西兰
NEW ZEALAND
阿根廷
ARGENTINA
CMEC's business and income distribution
RMB million
Asia
% Of total
South America
5,195.7
4,605.7
3,428.8
2,155.4
33.8%
29.9%
22.3%
14.0%
In total
15,385.6
100%
Africa
Europe
Head office
Domestic Subsidiaries
Market Distribution
12
2013
2013
1.2 Corporate Governance
1.1.1 Corporate Structure
Board Office
General Management Department
Strategy and Business Development Department
Party Work Department
Human Resources Department
General Department of Finance
Complete Plants Management Department
Trade and Service Management Department
Legal and Risk Management Department
Internal Export Compliance Office
Investment Management Department
CMEC attaches great importance to the standardization, systematization and transparency of its corporate
governance. In order to create optimal value for stakeholders, CMEC constantly enhance the internal
management and control capacity, optimize the governance structure, ceaselessly promote the quality of
corporate governance model, and establish law-abiding, efficient, transparent, and competitive corporate
governance culture.
1.2.1 Governance Structure
CMEC has, in accordance with Chinese laws and regulations and listing rules of the Hong Kong Stock Exchange,
established a standard corporate governance structure consisting of the General Meeting of Shareholders, Board
of Directors and Board of Supervisors to empower a coordinated mechanism that is fully operational with clear
responsibility definitions between decision-making, supervision and operation. With consideration to the interest
of all stakeholders, these measures aim to ensure efficient, standardized and orderly operation.
In accordance with the regulatory requirements, the Board of Directors is comprised of 2 Executive Directors, 3
Non-Executive Directors and 4 Independent Non-Executive Directors. The details are as follow: Chairman and
Executive Director Sun Bai, Executive Director and President Zhang Chun, Non-Executive Director Wang Zhian,
Yu Benli, Zhang Fusheng, Independent Non-Executive Director Liu Li, Liu Hongyu, Fang Yongzhong, Wu Delong,
Supervisor Quan Huaqiang, Qian Xiangdong and Bai Ming.
General Meeting
of Shareholders
Audit Department
CMEC
Audit Committee
Supervision Department
Board of Directors
Compensation
Committee
Investment, Financing and
Capital Operation Department
Management
Board of Supervisors
Board of Directors
Nomination
Committee
1st Complete Plants Division
GM Dept.
Strategy and
Development Committee
2nd Complete Plants Division
Operation and
Risk Management Committee
Functions
3rd Complete Plants Division
Corporate Governance Chart
4th Complete Plants Division
Tendering Division
Head Office Building Project Department
Domestic Affiliates
Overseas Affiliates and Representative Offices
General Meeting of Shareholders
Board of Directors
• To decide the operating policies and investment
• To convene the shareholders’ general meeting, to pro-
• To supervise the directors, the general manager
pose at the shareholders’ general meeting to pass reso-
and other senior management officers if they
lutions on the relevant matters and report its work to the
violate the laws, administrative regulations and
shareholders’ general meeting;
the Articles in the execution of their duties, and
plans of the company;
• To elect and replace directors and to decide on
matters related to the remuneration of directors;
• To consider and approve the reports of the Board;
• To consider and approve the annual financial budget and final accounts of the company;
• To consider and approve the company’s profit distribution plan and loss recovery plan;
• To amend the Articles;
• To decide on the engagement, re-appointment
or dismissal of accounting firms employed by the
company;
• ......
• To implement the resolutions of the shareholders’ general meetings;
• To determine the operation plans and investment plans
of the company;
• To formulate the annual financial budget and the final
account statement of the company;
• To decide on the establishment of the company’s internal
management structure;
to propose dismissal of any directors and senior
management officers who violate the laws, administrative regulations, the Articles of the company or any resolutions of shareholders’ general
meetings;
• To demand rectification from a director and other
senior management officers when the acts of
such persons prejudice the company’s interest;
• To formulate the company’s basic management system;
• To examine the company’s financial accounts;
• To manage matters relating to information disclosure by
• To put forth proposals at the shareholders’ gen-
the company;
• ......
eral meeting;
• ......
The duties of Shareholders’ General Meeting, the Board, and Supervisory Board
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1.2.2 Investor Relationship
1.3 Development Strategy
We attach great importance to listening to the ideas and suggestions of
investors, disclose important information to investors in a timely, standardized
and accurate manner through the means of announcements, website and other
multi way, and create a transparent and harmonious culture of equity.
In 2013, CMEC developed and released CMEC's Five-Year Strategic Plan
In 2013, we invited investors and analysts organizations visiting to CMEC,
helding symposia and non-deal roadshows to deepen their understanding and
recognition of our business. Also, we answered the investors' questions honestly
and carefully by the way of conference calls and one-on-one interviews with
investors to meet their demands.
for Development (2013-2017) which integrated social responsibility into
its corporate strategy, and marked the beginning of the company's new
five-year journey. In the next five years, CMEC will transform its business
model, adjust its business structure, reshape its core competitiveness,
make efforts on business innovation, transit development model to build
a first-class comprehensive corporate which is based on infrastructure
industry while diversify its development following the industry chain.
Corporation
Vision
Become the world leading international engineering contractor and
services provider.
Strategy
Goal
During the next 5 years, CMEC shall strive to promote “transformation”
by “breakthrough”, adjust the business structure, reshape the core
business's competitiveness, make efforts on business innovation,
transform development mode, and improve management ability
ceaselessly in order to ensure the quality of development and achieve
long-term growth.
Business
Structure
Three business sectors: engineering contracting, trade and services, and
investment.
Core
Competitiveness
2012 Annual Performance Conference
Suppor tin
Systems
2013 Interim Results Announcement
On December 21st, 2012, CMEC successfully listed in Hong Kong Stock
Exchange
Four core competences: capability of market development, management
innovation, industrial chain integration and multi-service interoperability.
Six supportin systems: the first is to strengthen the strategic closed-loop
management; the second is to establish the management and controlling
mode which can satisfy "multiple levels and diversified" business
development; the third is to establish the international talent pool and
talent building mechanism and performance evaluation system; the fourth
is to build the risk management system which can face the challenges
of "diversified" business development; the fifth is to build information
system which can strengthen management and controlling with business
collaboration; the sixth is to deepen corporate culture, and strengthen
the construction of corporate culture and brand image through system
building and culture promotion.
CMEC Development Strategy
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Social Responsibility Column
02 Responsibility Management
CMEC integrates the concept and requirements of social responsibility into its existing management systems
to achieve economic, environmental and social value. Taking sustainable development as the key issue, CMEC
actively explores the suitable social responsibility management model, ceaselessly enhances its communications
with stakeholders, carries out all kinds of social responsibility management activities, and strives to create the
best comprehensive value.
2.1 Organization System
CMEC set up the Working Committee for Social Responsibility with Chairman as its director and President as
the executive director under the Committee, there is the Social Responsibility Office with liaison officers from
2.3 Essential Issues Identification
company level and department level.
In order to substantively analyze sustainable development issues, and accurately and fully
disclose information related to operation management, CMEC studied its internal and external
stakeholders and benchmarked the guides for social responsibility at home and abroad based
on stakeholders' needs and the company's own development.
Social Responsibility
Committee
Duties and Responsibilities
•
•
•
•
•
Making decisions on how to carry out social responsibility work;
Establishment of social responsibility management system ;
Approval social responsibility plan;
Approval and release social responsibility report;
Carrying out important social responsibility work.
Extremely High
Project Quality
Staff Training and Development
Social Responsibility Office
Social
responsibility
liaison
officers of
the department
• Promoting social responsibility practices through communication.
Providing Sincere Services
Cooperation and Win-win
Promoting the Progress of the Industry
Profitability
Safe Construction
Engagement in the Local Community
Working with the Government
Innovation Capability
Energy-saving and Emission-reduction
Very High
Supporting Public Affairs
Tackling Climate Change
Charity and Donation
2.2 Responsible Communications
In order to get better understanding of stakeholders’ expectations and requirements, CMEC carries out
all kinds of activities including investigation and interview. We established social responsibility information
disclosure systems, which disclose how the company fulfills its responsibility by preparing and releasing
social responsibility report, setting up CMEC social responsibility in special columns on online and in CMEC
Newsletter, ect. With the disclosure system, CMEC’s operation transparency and social responsibility
communication skills have been increased steadily.
Integrity and Compliance
Human Rights
The importance to CMEC
Social
responsibility
liaison
officers of
the company
Implementation of the decisions about social responsibility work;
Organizing to write social responsibility report;
Coordination of the establishment and implementation of the social responsibility
management system ;
Organizing to write social responsibility plan, proposing the budget for social
responsibility work and training plan;
Organizing to research the important topics of social responsibility.
Customer's Satisfaction
Voluntary services
High
High
Very High
Extremely High
The importance to the stakeholders
Substantive Matrix of Sustainable Development Issues
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2.4 The stakeholders
2013
2.5 Honors and Recognitions
Meeting the reasonable demands and creating values for stakeholders is our ceaseless pursuit. CMEC creates
new ways and channels to communication with stakeholders, responds positively to their demands, and strives to
form a good relationship with them.
Stakeholders
Expectations and Demands
Profits and investment return
Shareholders
Satisfied market value
and Investors
Protection of rights and interests
Knowing the company's operation situation
Communication Approaches
Improving profitability
Disclosure of information on time
Following market rules
Honor the contract
Honor the contract, transparent information
Customers
High quality products
High quality services
Co-development
Partners
Industry
Community
and public
Daily Communications
Suggestions and feedbacks
Honor the agreement and contract
Win-win cooperation
High level visits
Resource sharing
Regular meetings
Open and fair
Multi-channel cooperation and research
Open procurement
Suggestions and supports
Keeping its promises
Open procurement information
Guarantee of payment
Negotiation and communication
Growing together
Protection of rights and interests
Wages and benefits
Democratic communication
Health and safety
Education and training
Humanity concern
Labor protection
Employees
Environment
Needs assessment
Energy conservation and emission reduction
Green design
Dealing with climate change
Green construction
Saving resources
Maintaining the ecological balance
Ecological environment protection
Green office
Facilitating industry development
For mutual benefits and win-win results
Conducting strategic cooperation
Hosting and participating in industry
development forum
Follow laws and policies
Compliance management
Pay taxes according to law
Paying tax actively
Promote employment, education and training
Supporting and guidance
Participate in charity and community
Training and publicity
Promote the development of local industries
Communication activities
Promote the development of local public affairs
Charity actions
The Title of the Honors
Awarded Time
The Advanced Unit of Joint Fund Raising Organization 2010-2012
November, 2013
Advanced Unit of National "Safe Production Month"
August, 2013
2012/2013 Annual Charity Award in Hong Kong
June, 2013
Grade-A Tax Credit Enterprise
January, 2013
Grade-AAA Credit Enterprise (China Chamber of Commerce for
Import and Export of Machinery and Electronic Products)
January, 2012
Advanced Group of the Trade Union Work
December, 2011
Grade-AAA Credit Enterprise
(China International Contractors Association)
November, 2011
China-Africa Friendship Award — "Top 10 Chinese Enterprises in Africa"
December, 2010
The Home of Model Employees
April, 2008
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Value CMEC
Sustainable Development
and Eternal Growth
CMEC is always in pursuit of sustainable development and
eternal growth. Our efficient and robust operation has laid
solid foundation for CMEC’s development. In addition, in order
to get better returns for investors and other stakeholders, we
enhance the diversified value-creation capability along the
industrial chain constantly.
Transmission Lines Plant in Republic of the Congo
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3.1 Compliance Operation
3.1.2 Internal Auditing
CMEC is in strict compliance with national laws and regulations, international practices as
well as business ethics. We accept the government and public's supervision, strengthen
comprehensive risk management and internal auditing, improve the mechanism of corruption
prevention and punishment, and enhance CMEC's internal quality and value-creation
capabilities by compliance operation.
CMEC regards auditing as an important means to standardize economic order and safeguard the company's
assets. We promote an auditing culture with the connotation of "Respecting, supporting and advocating auditing",
and follow the principle of "Auditing according to laws, serving the overall interests, focusing on the key issues,
highlighting the important points, and staying realistic and pragmatic". Furthermore, we strive to achieve "Auditing
against corruption, auditing with high quality and auditing with innovation" to guarantee the operating management
effectively.
3.1.1 Comprehensive Risk Management
Laws and regulations
Following the principle of "Planning overall, going forward step by step, highlighting important
issues, and integration operation", CMEC has established a comprehensive risk management
system which has its own features, and embedded the system and internal control process
into its specific business and hierarchy management. We also have developed the Guide for
Senior Managers using the Comprehensive Risk and Internal Control Management Manual
for the company and the Risk and Internal Control Management Manual for each department.
The comprehensive risk management system has been integrated with the responsibilities of
each post gradually forming a structure of all employees fully participation in risk-prevention
and control. In February 2013, the Shangbao Newspaper reported CMEC's comprehensive
risk management in its overseas risk-prevention and control system building column and the
title was "CMEC's risk-prevention and control work has achieved good results ".
Comprehensive risk management system
The introduction
and implementation
of risk management
solutions
Comprehensive
risk
management
assessment
Monitoring and
improvement
of risk management
The initial information
of cell phone risk
management
Comprehensive
risk management
process
Formulating risk
management
strategy
Comprehensive
risk
management
assessment
Risk assessment
Comprehensive
risk
management
assessment
System
Going through the company’s internal control
system periodically, focusing on fatal risk controlling points, trying to build audit information
platform, and striving to achieve standardization of the auditing.
CMEC's
Internal Auditing
Communications
Professionalism
Communication and exchanging information
with sister companies, learning the advanced
experience about finance and audit from the
other units in the Group.
Encouraging auditors to improve their knowledge and service capability through various
means and platforms, broadening the perspective of the auditing team’s theory construction.
Internal Auditing
Comprehensive risk management culture
Comprehensive risk management culture
Comprehensive
risk
management
assessment
Innovation
Continuing to explore new areas of auditing,
introducing risk-oriented auditing gradually,
increasing the proportion of pre-auditing and
current auditing, providing valuable advices
for the implementation and establishment of
the company’s system.
Paying attention to the release and alteration
of the national auditing regulations, norms
and guidelines, Organizing study and discussion activities if there are any significant
changes to ensure the audits are in consistency with national laws and regulations.
3.1.3 Business Ethics
We firmly carry out anti-commercial-bribery and corruption-free building, and always adhere to a working
approach of tackling both the cause and effect of any problem in a comprehensive way, and regarding prevention
and punishment as equally important but prevention-oriented, also follow the principle of "Law-abiding, integrity,
impartial and scientific", and always put the system building as the focus of the establishment of the punishment
and prevention system. We firmly reject commercial bribery, offering bribery to others or the other improper
business practices, and make efforts to create a corruption free environment.
We pay attention to raise awareness of preventing corruption. The actions we have taken including strengthening
supervision and organizing a series of anti-corruption activities which bearing publicity and educational purpose,
for example, using major cases to educate and warn people, promoting of "the culture of corruption free ABC",
and promoting of "laws and regulations which tackling commercial bribery". In 2013, we organized educational
activities of anti-commercial bribery 9 times with 798 participants in total.
Comprehensive risk management information system
3.2 Promoting Diversification
Prevention and Control of Legal Risks throughout Project Cycle
Case
CMEC pays great attention to the prevention and control of legal risks throughout the project cycle, and handles all legal
issues regarding the process of planning, design, feasibility studies and negotiation. In order to realize the goal of prevention
and control of legal risks, our consultants 100% engage in the progress of decision making, contract and regulatory review,
ect. CMEC's unique legal risk prevention and control mode fully meets the internal and external regulatory requirements which
greatly improve the efficiency of project implementation.
As international engineering projects evolve toward the direction of large-scale, complex and professionalism,
diversified business mode has become the critical path for companies to achieve sustainable development. Facing
fierce competition in the international market, we are aware that we have to follow this trend which means we need
to enhance diversity and form reasonable business patterns which can bring both growth and profit. Furthermore,
we try our best to build an integrated industrial chain centering on engineering contracting, trade and investment
and achieve multiple business synergies.
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3.2.1 Engineering Contracting
In 2013, both the growth of the global economy and the international engineering market slowed down. Even under
these circumstances, CMEC continued to maintain the rapid development. According to Ipsos's industry report,
comparing the revenue of all the international power projects, CMEC's income ranked second among China's
contractors accounting for about 9.6% of the market share.
We set up Complete Plants Management Department improving the detailed management and optimizing project
processes. Responded to our country's "Going out" strategy, CMEC has developed its international engineering
contracting business continuously and completed 14 projects in Africa, Asia and Europe which expanded the map
of international engineering contracting business, and promoted the construction of local infrastructure and rapid
economic development. Some of the completed projects got recognitions, for example, EREN (1+1) × 600MW
Supercritical Coal-Fired Power Plant in Turkey won Luban Award (Overseas Projects) and the first prize of excellent
engineering design in power industry. These honors further enhanced CMEC's brand.
Major Projects in Engineering Contracting Field
Broadcasting & TV Center in Gabon
3.2.2 Trade and Services
In response to the slowly recovery of global economy and intensified market competition, CMEC has taken a
series of measures to promote the transformation of its trade business. In 2013, we established Trade and Service
Management Department for modular management of the trade business while strengthen the reorganization
which formed integrated regional trade advantage, and regained the core competitiveness of the trading business.
Transmission line and subtations for Djiploho
Hydropower Plant in Equatorial Guinea
Bereza 400MW Combined Cycle Power Plant in Belarus
Following "Doubling the Export of its Products Plan of China National Machinery Industry Corporation" and
"Reform and Revitalization Plan of China National Erzhong Group Co., Ltd", we strengthened our cooperation
with its research institutes as well as the equipment manufacturing company which formed a unique marketing
mode. With our lead, the sister companies' products have been exported more and the subsidiary companies
competitiveness have been improved. We also promote the industrialization of trading business in order to
establish the mode which is consistent with CMEC's practices.
3.2.3 Investments
The international engineering contracting business goes through important stages, from cost advantage to capital,
technology and management advantage. While making the most of CMEC's advantages, we are actively in pursuit
of high-end investment and financing services and building the company's new core competitiveness.
We developed CMEC's Investment Management Approaches to build investment capacity, improve the efficiency
and scientific of decision making. We bring investment management into the comprehensive risk management
system to further enhance investment objective management, risk identification and critical point control.
Imboulou Hydropower Plant in Congo (Brazzaville)
December 19, 2013, the groundbreaking ceremony of
Yuegang Investment and Financing Center of CMEC's
was held in Shenzhen. The center is a brand new start of
CMEC's developing new business taking advantage of
Yuegang Investment and Financing platform which is the
important measure for boosting core businesses under the
new situation.
In accordance with the company's
development strategy, analysis of
national and the Group's investment
management system and policies,
complete the establishment of the project
processes of franchise investment.
Integration of professional agencies
like bank, insurance, accountants and
financial consultants, establishment
of investment platform for investment
business related finance services.
Investment Strategy
Actively carrying out researches,
preparation of the company's major
investment market analysis report,
providing reference for investment
business.
Mukah 2×135MW Coal-Fired Power Plant Project in Malaysia
Promoting of various investment
business, initially forming the projects
bank.
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3.3 Enhancing Sustainability Capability
In order to become the world leading International Engineering Contractor and Services Provider in China and
abroad, and ensure optimization and sustainability of the shareholder value, CMEC keeps trying to innovate its
management mode, deepen and strengthen its management as well as stay pragmatic and increase competitiveness.
3.3.4 Innovation Capability
3.3.1 Profitability
CMEC has the differentiated competitive advantage of the entire industry chain and innovate
business mode. CMEC constantly expands to the high-end market, innovating its internal
management system and technology solutions. CMEC has formed excellent competitive in the
highest flight.
We pay attention to the long-term and sustainable income and returns of shareholders. Meanwhile, we try our
best to improve profitability and use good business performance to guarantee the optimization and sustainability
of investor value. In 2013, CMEC’s net profit reached RMB 1.96 billion, the earnings per share was RMB 0.47 and
asset-liability ratio was 63.21%.
3.3.2 One-stop Service Capability
In order to face the fierce market competition, CMEC constantly improves its strength, adjusts its policies according
to different market needs in a systematic way which forms a unique business mode of "Light asset, and high return".
With its strong capability of market development, management innovation, industrial chain integration, and multiservice interoperability, CMEC effectively integrates and allocates suppliers both at home and abroad, construction
teams, technology experts to undertake diversified, high-tech and complex projects, and provides the integrated
services of the entire industry chain for customers including planning, designing, procurement, construction,
operation and asset management. CMEC also constantly improves its capability of one-stop customized solution,
integrates engineering contracting and service capabilities, and builds CMEC a international brand.
3.3.3 Financing Capability
We pay attention to strengthen our financing services which includes promoting the diversity of financing channels
and cooperation modes. We organize business meetings with the China Export & Credit Insurance Corporation
and the Export and Import Bank of China to expand financing channels; also, we expand our business cooperation
with financial institutions such as the China Development Bank to set up new financing service platform.
Furthermore, we improve the financial management system, develop plans for financial and exchange rate
management and raise the level of funds management and risk management.
Normal Working
Mechanism
Financing under
Specific Contract
of Insurance
Innovating Construction Plan
Case
The Transmission Line Plant in the Republic of Congo is one of CMEC's outstanding projects in 2013. The project
across three rivers in Congo (Brazzaville) , and the most difficult part to build was the line project across the Alima
River. The north bank of the Alima River is the 4-km-long wetlands with complex landscape, where the water is
several meters deep, therefore the construction was really difficult to manage. CMEC not only had to solve the
problem of bringing construction equipments and materials inside the site, but also had to fix the problem of
construction equipments working on-site.
The project department relies on many years of construction experience in water conservancy sector, and came up
a bold idea which was guiding the water rather than blocking it by building road. They organized experts to inspect
the site and created the new construction plan "Construction of the ferry, assembling barges, cleaning the river bed,
welding caisson, building tower foundation". In the end, the line across the Alima River was completed on schedule.
Beyond the benchland are large wetlands characterized by high underground water level, large water volume and
low foundation bearing capacity. Initially, large scale mechanical excavation work often occurred in a large cavein and subsidence. This significantly increased the volume of earthwork and delayed the project progress, posing
new difficulties for construction. In order to address the problem of machines operating on-site, the project team
introduced new construction techniques using hydraulic fill method to do the basic work in the wetland. We also set
up a team to help improve the overall construction means of the subcontractors and enhance their skills. After nearly
9 months of hard work, the high-quality 355-based wetland foundation completed safely and efficiently.
The wetland construction plan integrated civil engineering, hydraulic engineering, dredging and other skills which embodies the
technological innovation capacity of CMEC.
Establishment of an effective and direct communication channel, passing on and interpreting
national credit insurance policies in a timely manner, fully communicate all kinds of business
insurance programs, and establishment of a normal docking mechanism.
Pushing medium or small projects with payment term within two years to sign contract and
enter into force, Financing under specific contract of insurance which account receivable
is without recourse to buyouts. Currently, many projects are carrying out under specific
contracts for insurance.
Promotion of the diversified corporate financing mode, providing new financing channels,
Finance Leasing Mode
and actively providing financing for the projects through exploring financing leasing mode.
Signing Credit
Agreement with
New Added Banks
Expansion of the financial reserves, meeting diversified financial resource requirements for
Extending of
Credit Period
various projects, signing credit agreement with relevant financial institutions to obtain nonsecured credit.
Ensuring the stability of the financial resources, extending the credit period from one year to
two years or three years, or from two years to three years, etc.
The completed tower foundation in the water
New Features of Financing Management
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Quality CMEC
Quality Guarantee and
Sincere Services
Customers are the basis for the existence and development of
enterprises, recognition and trust of customers are the source of our
values. CMEC has always put clients interests first, and in pursuit
of high-quality projects and credit services. We also integrate
customer requirements into the whole process of production and
management, and strive to create more value for them.
EREN (1+1) × 600MW Supercritical Coal-fired Power Plant in Turkey
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4.1 Building High-quality Projects
CMEC views the quality of the project as the guarantee for enterprise to
expand the market. We also continuously improve the quality management
system and the c apabilit y of using that system to gain c ustomer s
reassurance and satisfaction.
4.1.1 Quality Management System
We continue to improve the quality management system, institutional system
as well as evaluation system. According to the engineering contract and
requirements of the owners, we plan roundly, systematically, and carefully,
carry out technical requirements of the contract and project management plan
strictly. We also strengthen the inspection, supervision and coordination in
order to fully promote the quality of projects and services.
Got the ISO 9001:2008
Quality Management
System Certificate
4.1.2 Strengthening Quality Control
Thinking about the features of each business sector during the whole process of planning, design, procurement,
construction, and maintenance, we constantly improve the quality of managers’ professionalism, strengthen the
supervision and inspection, firmly establish quality awareness in order to achieve comprehensive guarantee of
the project quality.
EREN (1+1) x 600MW Supercritical Coalfired Power Plant in Turkey
The Matching Transmission Line Subtations for Imboulou Hydropower Plant in Congo (Brazzaville)
Case
The matching Transmission Line Subtations for Imboulou Hydropower Plant in Congo (Brazzaville) went straight-through the central and
southern Congo (Brazzaville), is also the largest Engineering Procurement Construction (EPC) project that CMEC has ever contracted. The
transmission line crossing many tropical rain forest and swamp area where the geographical condition and weather is too harsh to construct
like working in land; In addition, the local railway is behind the time, and the roads are old and shabby, therefore, the transportation capacity is
so weak that seriously restricting the construction schedule. We have created a unique method to construct on the wetland and completed the
tower foundation work in the water. Because of taking full advantage of the valuable dry season of the year, we used road, railway, and air to
guarantee the shipment of equipments and materials. In 2013, we successfully completed the final acceptance of the project, and the power
supply became available in the project area for the first time in history.
EREN Project in Turkey Won Luban Award (Overseas Projects) — China’s highest prize for construction
Case
The EREN (1+1) x 600MW Supercritical Coal-fired Power Plant in Turkey, for which CMEC was the general contractor, is the first 600MW
supercritical coal-fired power generating units exported from China and put into use in Turkey, and opened up the international market for
China's first independently designed, manufactured, installed, debugged and operated large-size thermal power generator units. The project won
the China Construction Engineering Luban Prize (Overseas Projects) in 2012-2013 which marked the first time that a coal-fired power plant had
won the reward. In addition, the project was also awarded the "First Prize for Excellence in Project Planning" (ranked No. 1 in the category) at
the appraisal meeting for "Outstanding Overseas Power Generation Project Planning in the Electric Power Industry organized by China Electric
Power Planning & Engineering Association.
With its accompanying economic and social benefits, the project has convinced Turkey and its neighboring countries, as well as the international
market in general, of CMEC's competency in providing equipment, project management, design, construction, debugging and operations; it has,
as a result, effectively built up CMEC's market image in Turkey and surrounding countries.
4.1.3 Providing Sincere Services
Good communication with customers is one of the most impor tant measures for retaining them
and improving their loyalty. CMEC has established a sound customer service management system
to improve customer satisfaction, and endeavor to develop mutually beneficial and long-term
relationship with customers.
Means of Communication
Contents of Communication
Communication Features
Direct communication with
high level managers
Strategic cooperation negotiation,
visiting for mutual understanding
Direct communication with
high level managers
Business talking face to face
needs investigation
Major business information exchange
The most direct and effective
communication
Telephone, online communication
Event communication
Time-saving and efficient
Using the advantage of being the "resource Integrator", we take initiative to provide customers with one-stop
optimal solutions and integrated services, we continue to meet and exceed customer needs. In Equatorial
Guinea projects, we provided specific trainings for our customers from theories to operation which cultivated
technical personnel; In Venezuela project, we set up welding training school, mechanical and electrical
maintenance factory to educate professional technical personnel for our customers.
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Persistence for Quality Projects
2013
2013
Case
The Bereza and Lukoml power plants are the first two power projects undertaken by CMEC in Eastern
Europe. Both of them are combined cycle power plants consisting of gas turbines, boilers, steam
turbines, generators and auxiliary facilities, with an installed capacity of 400 MW.
Belarus is characterized by cold winters, where the time for outdoor construction is no longer 7 months.
As a result of severe weather conditions, heavy equipment and tools must be transported through inland
rivers. And the transportation can only proceeded during the wet season in June - October. The materials
for construction falls short of demand, and delivery cycle is quite long. Moreover, the project owner insists
on supervising the project implementation according to European standards...... In the face of multiple
challenges, CMEC remained brave to confront difficulties. To ensure that high project quality and timely
completion, the Bereza project department organized all contractors to work around the clock against
severe cold and snow. As a result, they made up for the delayed schedules. To ensure the project quality
and progress, the Lukoml project department launched a 100-day campaign focusing on quality, safety
and progress. Eventually, the Lukoml project was handed over on schedule and the Bereza project was
delivered 78 days ahead of schedule.
CMEC’s thinking and working styles, pursuit for excellence and the great effort made to ensure project
quality and schedule were highly recognized by all walks of life. The CMEC project departments were
commended by the project owners, Brest Power Company and Bereza Power Plant. The power projects
were also reported by Russia’s Russian Komsomolskaya Pravda Newspaper.
The successful completion of the two power plants in Belarus not only helped CMEC accumulate rich
experience and cultivate a large team of talents, but also built a monument for friendship between China
and Belarus.
The Bereza and Lukoml Power Plants in Belarus
4.2 Building Responsible Supply Chain
Building responsible supply chain is one of the most important safeguards to create excellent
project. In order to lay a solid foundation for high-quality project, we maintain independence during
the procurement process, constantly strengthen the supply chain management, keep transparent
subcontract procurement, deepen mutually beneficial cooperation, and endeavor to build a top
quality supply chain.
4.2.1 Strict Management of the Supply Chain
We developed a series of complete equipment management approaches including Subcontract
Procurement Management Approach, Progress Quality Checking Management Approach, Complete
Equipment Management Approach, Project Review Management Approach, and Post-project
Evaluation Management Approach which specify the requirements on supplier selecting, comment,
tender, bid evaluation and contract signing as well as the monitoring on the progress and quality of
procurement project during the implementation of the project, ect. We continue to perfect detailed
management, and establish solid strategic relationship with quality suppliers to provide high-quality
projects.
“The cooperation with you is quite excellent. Your management expertise and
working experience are very high. You have done an excellent job and the power
plant is extraordinarily successful!”
——Ivan, senior expert of electricity industry and former general manager of the Bereza
Power Plant of Belarus
“The successful completion and operation of the Bereza plays an important role
in increasing the GDP of Belarus!”
——Alexander Lukashenko, President of Belarus
4.2.2 Transparent Subcontract Procurement
Extended Services, Helping Project Owner Standardize Its Project Approval
In order to ensure the legitimate rights and interests of suppliers/ subcontractors, we create a fair,
impartial and open bidding environment as well as sign procurement and subcontracting contracts;
we are also in strict compliance with contract terms, and respect and treat each of the suppliers/
subcontractors equally.
Case
Over the years, the Republic of Equatorial Guinea has not set up a specialized department in charge
of its national project's creating, auditing, reviewing and signing contract, therefore, the management
procedure is not standard. CMEC proposed the Ministry of Mines, Industry and Energy to establish a
committee, and offered to provide China's experience and actual help. The Committee was established
in June 2013.The Ministry is getting standardized in the project approval process increasingly, and the
efficiency has been improved greatly.
We continually enhance measures to combat commercial bribery in bidding processes, and develop
the Corruption-free Notice on Subcontracting Procurement to specify requirements on subcontractors.
Meanwhile, we call on subcontractors to sign the Corruption-free Commitment of Managers on
Subcontracting Procurement, and try to prevent commercial bribery from the beginning.
"CMEC assists us to improve
the project management
system of the government of
Equatorial Guinea, and brings
advanced experiences to us.”
Provided training for technicians from the Republic of Congo (Left)
Organized training for power project employees of Equatorial Guinea in China (Right)
——Ministry of Mines, Industry
and Energy, Equatorial Guinea
The terms of the Corruption-free Commitment of Managers on Subcontracting Procurement
Strict adherence to CMEC's subcontracting procurement rules and regulations
Carrying out guidelines of "Operation according to laws, doing business corruption-free"
Neither request nor receive any gift in any name from sub-contractors and suppliers
Not leaking commercial secrets of the subcontract procurement process
Strict implementation of financial systems and carefully auditing contracts
The Corruption-free Commitment of Managers on Subcontracting Procurement
33
34
2013
4.2.3 Enhancing Mutually Beneficial Cooperation
Building Platform to Deepen Cooperation — CMEC Hold the 12th China Engineering & Technology Exhibition
We pay attention to strengthen cooperation with governments, banks as well as the leading international
companies; we conduct extensive international exchanges to achieve complementary advantages and
sharing benefits.
Cooperation between
Governments and Enterprises
Building strong partnership with
many countries’ governments
and relevant depar tments,
signing memorandum of understanding on cooperation.
2013
Cooperation between
Banks and Enterprises
Cooperation between
Peer Enterprises
Expanding the scope of cooperation with domestic financ ing enterprises, building new
financing platform.
D e p e n d i n g o n C M E C I n t e rnational Exhibition Co., Ltd to
pave the way for Chinese companies to expand overseas.
Actively seeking cooperation's
with overseas financing institution, establishing a wide range
of business partnerships.
Actively c ommunic ating with
business partners to establish a
good partnership.
Case
In November 2013, CMEC held the 12th China Engineering & Technology Exhibition in Sri Lanka as authorized by the Ministry
of Commerce of the People's Republic of China with over 50 outstanding Chinese engineering companies participated. Sri
Lanka President Mahinda Rajapaksa, Prime Minister D.M. Jayaratne and many distinguished guests who are from the governing
departments attended the opening ceremony, cut the ribbon and visited the exhibition.
This exhibition played an important role as a platform which promoted the cooperation between enterprises from China and Sri
Lanka, strengthened the communication about information and technology between political and business representatives from both
sides, deepened Chinese company's understanding and awareness of the Sri Lankan market and laid the foundation for the further
cooperation in the field of infrastructure between two countries.
Cooperation with Governments, Banks and Other Enterprises
Sri Lanka Prime Minister D.M. Jayaratne and Chairman Sun Bai attended the opening ceremony and cut the ribbon
Cooperation with GE to Explore the International Market
Case
In July 2013, President Zhang Chun met with Mr. Steve Boize,
GE's Senior Vice President and CEO of GE Power & Water.
They discussed about expanding cooperation to more markets
and deepening it in various ways such as general contracting,
consortium, joint investment and joint finance, and signed the
Memorandum of Understanding for Strategic Cooperation. The
strategic cooperation with the leading international enterprise
has laid a solid foundation for CMEC's further expanding in the
international market, improving the project quality and promoting
the brand image.
On March 8, 2013, CMEC signed the strategic cooperation agreement with Wuxi Huguang Boiler Co., Ltd
On behalf of CMEC, President Zhang Chun signed
the MoU for Strategic Cooperation with GE
Ice-breaking Journey, Discovery Journey, Hope Journey — Turkey Branding Exhibition
August 27, 2013, President Zhang
Chun, paid a visit to Tomislav
Nikolić, the President of Serbia
discussing the further cooperation
November 14, 2013, Chairman Sun
Bai met with Tanzania President,
Jakaya Mrisho Kikwete discussing about future cooperation in the
fields of energy and power
December 5, 2013, Chairman Zhang Chun paid a
visit to Argentina President Cristina Fernández de
Kirchner at the Presidential Palace discussing about
the Argentina‘s railway project, and improving the
transportation of Argentina's major agricultural areas.
On September 17, 2013, CMEC held "CMEC, your partner for
success" branding exhibition in Turkey where is the junction of
Asia, Africa and Europe. Taking a variety of interactive forms,
the exhibition made a number of representatives from different
countries understanding CMEC's capability of business operation,
marketing, project management, integration and financing. The
exhibition fully demonstrated CMEC's branding glamour.
Branding exhibition brings hope to CMEC's future. This new
attempt has accumulated valuable experience to promote CMEC's
branding advantages in other areas for the future, opened a new
chapter for CMEC's cooperation with enterprises in Turkey and
surrounding countries, and started the epic journey for CMEC to
renew the greatness of the Silk Road.
Case
Chairman Zhang Chun delivered a speech titled
"CMEC, Your Partner for Success"
35
05
Green CMEC
Building Environmental
Friendly Projects Globally
As an enterprise with businesses all around the world, we always pay
attention to environmental protection wherever we go. We incorporate
the concept of environmental protection into the entire process of
business operation, and do everything we can to reduce the possible
impact on the local environment. In addition, we positively promote
energy-saving and emission-reduction management, tackle climate
change, and practice sustainable development.
National Wind Power Concession Project in Operation
38
2013
2013
5.1 Practicing Environmental Management
5.2 Establishing Green Projects
We always bear environmental protection in mind during construction of projects. We also implement environmental
management during the entire process of design, construction and operation. Furthermore, we harmoniously
integrate projects into natural environment, minimize impact on the local environment, and meet the stakeholders'
environment requirements.
We continue to focus on clean energy, and we are dedicated to develop and research new energy including solar
power. Using our own advantages, we establish solar energy production base and endeavor to provide effective
solutions for clean energy generation projects, and strive to become the world's leading provider, constructor and
channel of renewable energy. In October 2013, China Machinery Engineering Wuxi Co., Ltd which is a whollywoned subsidiary of CMEC won the "2013 CREC Renewable Annual Award" at the 5th China (Wuxi) International
Renewable Energy Conference and Exhibition.
Project Development
Investigation and Design
Learning about local environmental laws
Project Financing
Implementation of relevant laws and
and regulations.
Integration environmental protection
regulations requirements.
Learning about EIA requirements about the
into costs.
Implementation of contract require-
contract.
Operation and Maintenance
Monitoring pollutant emission.
With CMEC's business continually expanding in the domestic market, relying on CMEC's affiliated institute —
China Machinery International Engineering Design & Research Institute Co., Ltd, we build a technical service
platform, and start to form a developing team regarding municipal environmental protection and civil engineering
projects, focusing on the development of municipal environmental protection projects, actively engaging in the
establishment of "beautiful China".
ments.
Project Construction and Management
Procurement of Equipment
Reviewing suppliers environmental
protection qualifications.
protection qualifications.
Purchasing environmental friendly
Ensuring green construction processes.
materials.
Reviewing suppliers environmental
Full Cycle Environmental Management
Building High-quality Environmental Friendly Power Plant
Promoting Energy-saving and Environmental Friendly Projects
Case
Case
Since 2003, delegated by China energy authority, CMEC has performed dozens of concession project
bidding work about wind power, PV power, and trough solar thermal power, completed land wind power
development right tender 330MW, sea wind power development right tender 100MW, unit equipment of
large wind power base tender 1,407MW, PV power station development right tender 29MW, and trough
solar thermal power development right tender 5MW. The accumulated winning tender exceeds RMB100
billion, making a positive contribution to promote the development of China's new energy industry.
In addition, CMEC actively explores renewable energy projects such as wind power and PV power.
It is also dedicated to save non-renewable fossil fuels, reduce pollutant emissions, and promote the
development of clean energy power.
CMEC 's EREN (1+1) x 600MW Supercritical Coal-fired Power Plant in Turkey met contract requirements and fully in implementation of energysaving and emission-reduction concept. Flue gas denitrification and desulfurization facilities were equipped at the same time using Limestone Wet
Flue Gas Desulfurization system and Selective Catalytic Reductio (SCR) Denitrification system. Moreover, the boiler was equipped with new lowNOx emission burner with excellent performance and the high performance electrostatic precipitators.
The environmental protection equipment of the power station include desulphurization facility, denitrification facility and electrostatic precipitator,
operate at the same time after ignition. The SO2 emission concentration of unit 1 and unit 2 is lower than the contract's emission allowances 200mg/
Nm3, and dust emission concentration is lower than the contract's emission allowances 30mg/Nm3 which meet EU standards of similar power plant
and reach the international advanced level.
China Machinery Engineering
Wuxi Co., Ltd was honored with
"2013 CREC Renewable Energy
Annual Award"
The desulphurization and denitrification equipments behind the boiler of the EREN (1+1) x 600MW Supercritical Coal-fired
Power Plant in Turkey
China Machinery & Equipment International Tendering Co., Ltd completed several tender
for concession projects
39
40
2013
2013
5.3.1 Green Working
Building Angola's First Sludge Treatment Plant
Case
Sludge is a general term for all types of sediments and suspension left by water treatment processes, generating organic pollutants and stench
has become a major nuisance of urban sanitation. During the construction of sludge treatment plant in Kifangongdo, CMEC achieved the goal of
bringing down the water content of sludge and reducing sludge volume by choosing an advanced process, and laid a good foundation for sludge
transportation, storage and further processing. As the first sludge treatment plant being built in Angola, its successful run protected local water
resources, has contributed to the prevention of water pollution, the efficient processing capabilities also has set an example for the subsequent
construction of sludge treatment project.
CMEC encourages its employees to practice green working and integrates low-carbon idea into
daily work as well as strives to reduce impact on environment.
Power Saving
Saving Power with Lights
Promotion of energy-saving lamps.
Reducing the number of lamps and the
lighting time in public areas.
Tur ning of f lights and power sourc e
before off work, never leaving the lights
on after work.
Saving Power with Air Conditioners
Forbidden to open doors and windows
when air conditioners are on.
Saving Power with Office Equipments
Adjusting the running time of office
equipments reasonably.
In summer, the indoor temperature shall
not be lower than 26℃, in winter, shall
not be higher than 20℃.
Sharing printers and photocopiers.
Turning of f air conditioners one hour
before off work.
Using energy-saving water heaters.
Encouraging employees to walk if go
to offices within or less than threefloor, using less elevators.
Cleaning the equipment regularly very
year.
Water Saving
Maintenance of Water Equipments
Strengthening the routine maintenance of water equipments.
Sludge Thickening Tank
Angola President was at the completion ceremony
Checking and replacing of aging water pipes regularly, once find
the pipes leaking, immediate replacement of aging water pipes
and components, installation or upgrade to water-saving and
sanitary ware, stop water leaking for ever.
Water Tank Modification
Replacing the original energy-consumption water pump
for large water tanks on the roof system with variable
frequency non-negative pressure water supply system.
Replacing the water heater with a smaller one, stopping the
waste a big box of water when cleaning.
5.3 Actively Tackling Climate Change
We remain focused on climate change, integrate the concept of energy-saving and emission-reduction into
the enterprise management, take it as an important means to address climate change, establish and improve
relevant management system. Most importantly, we incorporate energy-saving and emission-reduction work
into our longer-term and strategic development plan.
● Setting up an Energy-Saving and Emission-Reduction Work Team.
● Leading by the Complete Plant Division, each department assigns a person
to be in charge of energy-saving and emission-reduction statistics and
publicity.
manager in charge, c onducting annual
Administration of Energy-saving and Emission-reduction.
Appraisal
System
Institutional
System
Putting an end to turn air conditioners on
standby for a long time.
regulations, implementation of management system of
energy consumption limits for high energy-consuming
one who makes progress and punishing the
products and energy consumption rating for major energy-
Statistical
Monitoring
consuming equipments.
● Establishment of the Provisional Regulations on Energy-saving and
Emission-reduction Statistics and Supervison, providing energy-saving and
emission-reduction measuring instruments in accordance with laws and
regulations, and conducting calibration regularly.
The Management System of Energy-saving and Emission-reduction
Paper Saving
● Implementation of relevant national and local laws and
assessment of each function, rewarding the
one who lags behind.
U n i f i e d m a n a g e m e nt a n d s c i e nt i f i c
arrangement of using vehicles, improving
of the efficiency.
● Development of the Interim Measures of Supervision and
on Energy-saving and Emission-reduction
Assessment, assigning depar tment
Unified Management
Strict implementation of quotas and
equipment standard of vehicles provided
by the company.
Vehicle repairs and maintenance shall be
submitted for approval in advance, going
to the company which won the tender to
repair and maintenance the vehicles.
Organizational
System
● Establishment of the Provisional Regulations
Fuel Saving
Establishment of Paperless Office
Implementation of online office, signing
and approving online.
Green Travel
Taking buses, subways and bicycles
as more as possible, taking actions to
promote energy-saving and emissionreduction.
Establishment of Management Accounts
for Vehicles Provided by the Company
A pproving f uel c onsumption quot as
realistically, and strictly follow one card
for one car to refuel at a fixed place.
Establishment of a monthly fuel
consumption and materials consumption
statistics system to enhance fuel
consumption evaluation for each car.
41
42
2013
2013
5.3.2 Participating in Environmental Protection
We attach importance to build a green culture and instill the idea and awareness
of environmental protection into our employees. At the same time, we encourage
our employees to actively participate in environmental protection activities and
make their contributions to society.
We actively launch environmental protection publicity and education campaigns,
establish a theme for our energy-saving and emission-reduction effor tadvocating green and low-carbon, and practicing scientific development, and
integrate energy-saving and emission-reduction into the day-to-day work of
employees. In 2012, we organized the team members of the energy-saving
and emission-reduction work group to learn relevant laws and regulations, and
implement them in line with CMEC's conditions. We also set up publicity boards
to show the energy saving cases around us in the form of pictures, and promoted
energy-saving and emission-reduction actions from multiple perspectives.
Enriching Carbon Sequestration Knowledge, Practicing Low-carbon Actions
Case
April 22, 2013 was the World Earth Day, during that day, 20 people from the Party Branch and Youth
League Branch of the CMEC Petrochemical-General Machinery Co., Ltd and Beijing Forestry Carbon
Administration Sequestration (BFCA) came to the beautiful forest of Xishan National Park. During the
process of experiencing the mother nature, the staffs not only learned the forest environmental protection
knowledge, but also had an in-depth look into the new form of "buying carbon sequestration". The carbon
credits that they gained through participating in the construction of Beijing forestry carbon sequestration
projects can be deducted from the mandatory emission-reduction quota for the company in the future
which plays an active role in easing the burden of the enterprises' emission-reduction and expanding the
space for the company's survival and development.
The carbon sequestration trip to the Xishan National Park
Imboulou Water Control Project in Congo (Brazzaville)
Voluntarily Planting Trees to Beautify the Capital City Beijing
Case
In April 2010, CMEC organized an activity called "Planting Trees to Beautify Beijing" at Badachu Park of Beijing
to encourage employees to get involved in the project of "Building CMEC's Hope Forest". A total of 90 employees
participated in this activity. They donated RMB113,700 and planted 379 Acer Truncatum and Dalea Spinosa trees,
inheriting the green concept with actions.
CMEC's Hope Forest
43
06
Safe CMEC
People-oriented and
Safety First
We realize the importance of safety in production for enterprise
development and the society, and always implement the approach of
“safety first, focus on prevention, and comprehensive governance”.
We also build a safety production management system which
matching the characteristics of CMEC’s major businesses and
ensuring safe production is under and in control.
Bereza 400MW Combined Cycle Power Plant in Belarus
46
2013
2013
6.1 Safety Production Management System
In accordance with the features of engineering contracting, we build a three-level safe production
management system comprising of the company, property owners and subcontractors, each party
undertakes its safe production management responsibility according to the terms of the contract
and safety management agreement. In 2013, the company invested RMB7.75 million in annual
safe production, what’s more, CMEC and the subcontractors did not occur any general or more
serious production safety accidents.
Safe Production Management
The company: establishment of Safe Production Committee and Safe Production Office.
Organizational
System
Supervising
Subcontractors
Institutional
System
Division/Subsidiary: establishment of Safe Production Leading Team.
Project Team: establishment of Safe Production Management Institute.
Firefighting drill in the project site
The company: development of the Management Agreement of Safe Production which
specif ies the safe production management responsibilities of the company and the
subcontractors respectively.
The project team: reviewing the qualifications of subcontractors, signing the Management
Agreement of Safe Production, and requiring contractors to delegate a full-time/part-time
safe management personnel.
The company: development of regulations like the Management Approaches of Safe Production,
the Comprehensive Emergency Plan for Safe Production Accidents and Incidents.
The project team: development of safe production responsibility system, safe production
education and training system, safe production checking and prevention system, safe
production evaluation system and vehicle management system. ect.
Organizing Diversified Safety Training Programs
Case
CMEC organizes safe production training and experience-sharing conference every year. In 2013, 35 people, including
company leaders, heads of relevant departments, safety managers on-site participated in the training and experience sharing.
We also took CMEC's safety managers on-site visiting the Gaojing Thermal Power Plant to see the turbine power station
extension project. The participants were showed how to do security check at the scene, and listened to safety production
technique presentations. Diversified training programs including communications, demonstrations, and lectures enhanced
safety awareness and skills of managers at all levels constantly, and put safety production in practice.
CMEC's Safety Production Management System
6.2 Emphasizing on Safety Training
In order to continuously enhance safe production awareness and skills of staff at all levels, we
provide more targeted safety production education and training for project managers, safety
managers and on-site practitioners. In 2013, we organized safety education and training 3 times
at company-level, with a total of 140 people participated.
Project Manager
Carrying out internet training about safe production management. In 2013, a
total of 90 employees participated in the training and passed the exams.
On-site Safety
Management Personal
Sending the qualified, experienced and responsible safe personal to
important projects, organizing qualification training for them on a regular
basis, the safe personal should obtain qualifications first, then take the
job. In 2013, a total of 17 employees passed the exams and gained safe
management personal certificates.
On-site
Practitioners
Providing safe production education for them by mobilization, topic
signatures, videos, safe knowledge competitions, newsletters, and bulletin
board.
Safety production training for employees at different levels
Safety production training & experience-sharing conference/ Safety checking up observation
47
48
2013
2013
6.3 Implementation of Safety Inspection
In order to supervise the safety management of project sites, identify and eliminate security
risks in a timely manner, we conduct safety checks and provide guidance to project sites
regularly or irregularly. In 2013, CMEC sent several specialized inspection teams to Sri
Lanka, Turkey, Serbia, Belarus, Yemen and Iraq conducting security checks. Each project
team carried out security risks inspection based on its own situation, and brought down all
the risks that found during the inspection timely and seriously.
Award the Advanced Unit of the 2013 National
"Safety Production Month"
Aw a r d t h e E x c e l l e n t E n t e r p r i s e o f S a f e t y
Production of SINOMACH in 2013
Joint Carpet Security Check
In June 2013, led by the project team of the CMEC SILOPI 2× 135MW Asphaltite Fired CFB Boiler Power Plant Project
(Phase II) in Turkey, ENDEM — Turkey's civil construction company, and Hubei First Electric Power Construction
Engineering Company (HEPEC) — China's installation company conducted joint safety check on-site. The joint checking
team carpet investigated the entire site, and made sure not to leave a blind spot; they documented all discovered security
risks, and specially assigned a person to follow up the rectification with a fixed period of time; the joint safety checking
effectively increased the security level of the site.
Diversified safety training programs
Counter-terrorism Training in Iraq
Case
Case
22-23rd, July 2013, CMEC organized a 2-day overseas counter-terrorism safety training for safety managers of project team
and construction company of the Salah-Aldeen 2x 630MW Oil/Gas-fired Units Plant in Iraq. The training content consists mainly
of theory training and practical skills. The theory training was designed to help safety managers learning the security situation in
Iraq, mastering commonly used arms, functions, classification and protection of explosive devices, and learning psychological
crisis prevention and adjustment. The practical skills training was designed to help increasing the participants' capabilities
of personal security protection, defense and control, international sign language, self-help and mutual help, the other crisis
responses and so on. The training enabled participants to establish a new security concept, strengthened awareness of their
own security, increased skills of responding emergencies, and implemented safety management of the project to the point.
6.4 Safety Emergency Management
We have released the Comprehensive Emergency Plan for Safe Production Accidents and
Incidents of CMEC, and established a three-level safety management and risk prevention system
comprising of the company, division (subsidiary), and project team. During the "Safety Production
Month" and "Emergency Drill Week", we organize regular emergency drills to improve the Plan,
enhance awareness of prevention and self-help of the on-site practitioners, and improve the onsite team's ability of handling emergencies.
Comprehensive Plan
Comprehensive
Plan
Specialized
Plan
CMEC develops and implements the level 1 comprehensive plan.
The Division (subsidiary) develops and implements the level 2
comprehensive plan.
Specialized Plan
The relevant department develops and implements the specialized plan
according to the nature of the issue.
On-site
Plan
Defense and control training
On-site Plan
The project team develops and implements the on-site plan.
49
07
Happiness CMEC
Stay Close to You for
Common Development
Employees constitute an important force that drive CMEC’s
pursuit of sustainability. Therefore, we spare no effort to create a
healthy and enjoyable platform to tap their potential, mobilize their
enthusiasm and creativity, and eventually help them transcend
themselves in career. Diversified and creative employees represent
another competitive edge of CMEC.
Participation, Endeavor, Persistence and Happiness - Enthusiastic Participation in the Fourth Employee
Sports Meeting of SINOMACH
52
2013
7.1.3 Occupational Health
7.1 Safeguard Rights and Interests of Employees
CMEC takes the respect for and protection of employees’ rights and interests as an important
foundation for their sound development. In this context, we adopt an employment policy of openness,
fairness and equality to empower a healthy and safe working environment where each and every
employee can work happily and live merrily.
7.1.1 Equal Employment
Globally, we fully respect and uphold international human rights conventions and labor standards,
respect human rights and refrain from discriminating employees on the basis of religion, race, national
origin, sex, politics, region or color, and prohibit child labor and forced labor. We strictly observe
Chinese and local laws and regulations on labor, adhere to equal employment and provide male and
female employees with equal pay for equal work. At the end of 2013, our headcount stood at 2,633
and we signed an employment contract with all employees. Females made up almost one third of the
intermediary and senior management.
5.1%
13.0%
64.1
5.7%
19.4%
58.7%
54.2%
2013
%
22.6%
We remain committed to protecting the physical and mental health of our employees, extending
the scope and coverage of occupational health services and constantly improving our occupational
health management system. As a result, we successfully passed the Occupational Health and Safety
Assessment Series (OHSAS18001) certification. At CMEC, health checks are organized on a regular
basis for our employees. In addition, we keep health records of employees for better health management
and disease prevention. We also pay much attention to institutionalizing a dedicated health support
system and providing special disease checks for those returning from overseas project sites to ensure
their health and safety.
We established a female employees committee to provide special physical examinations, organize
mental health lectures, offer health books, launch outdoor exercise activities for them and protect
their health, rights and interests.
No Effort Spared to Save Sub-contractor Employees
Case
In November of 2011, an employee of the subcontractor who worked at the Djermaya-N'Djamena 66KV Transmission Line and
Substations plant in Chad suddenly appeared symptoms of malaria. CMEC attached great importance to the event, and contacted
International SOS Pte.Ltd and the aviation coordination centers in Paris, Hong Kong, Dubai and Frankfurt in the first time, then sent
the patients to Paris for treatment in the way of medical chartered flight. More than 1 month later, the patient finally got out of danger
and recovered completely. During the whole process, CMEC closely followed the development of his disease, spared no effort to
prepare an efficient transfer plan and a viable treatment plan for rescuing and treating the patient, and ultimately successful save
the life of the subcontractor's employee.
35.9
21.3%
%
Age Status of Employees: (as of 2013)
Education Status of Employees:
Male to Female Ratio:
Below 35
Masters degree or above
Male
36 to 45
University
Female
46 to 55
College
Above 56
Special secondary school or below
Sick employees
treated locally
November 30
We keep strengthening democratic management, advance democracy, protect the rights of
employees to know, supervise and take part in decision making and give full play to their role in
management. Through the worker’s congress, transparency of company affairs and employee regular
symposiums, our management gets increasingly standardized and institutionalized.
By the end of 2013, CMEC had been established trade unions of all levels and all CMEC's employees had
joined the organizations. In 2012, 14 suggestions were collected from employees and 12 of them were adopted.
The employees’ assembly received 3 proposals and the employee satisfaction rate reached 100%.
Training of CMEC Trade Union Leaderships
December 1
Urgently contact with International SOS Pte.Ltd
Employees transferred to
Paris via chartered plane
December 1- January 2
Employees in stable conditions and closely monitored
January 6
Employees sent back
home for treatment
and recovery
Doing utmost to rescue employees of Chad project sub-contractor
No CMEC Family Member Left Behind
7.1.2 Democratic Management
The 1st Meeting of the Fifth Worker's Congress
November 26-30
Case
On January 3 of 2013, Zhang Junfeng, vice project manager of Hebei First Electric Power Construction Engineering Company who
was a subcontractor working at Bereza power plant project site in Belarus, suffered a chronic swelling and pain on the midsection.
It was later diagnosed by the Brest State Hospital to be a severe acute pancreatitis. Mr. Zhang was then hospitalized at night for
emergency treatment when he became critically ill.
After knowing the news, CMEC attached great importance and decided to save the patient at all cost in the first place. CMEC's
infirmary immediately contacted and sent Qi Wenjie who is a chief physician of severe and acute diseases working in Beijing
Friendship Hospital to the poject site to discuss the treatment plan with his Belarus counterparts. Meanwhile, CMEC reported the
event to the Chinese embassy to Belarus and asked for the support of medical resources. Then, the embassy informed the Ministry
of Health of Belarus which dispatched medical experts to Bereza State Hospital to consult with other experts and treat the patient.
Thanks to the joint efforts of Chinese and Belarusian medical experts, the patient finally got out of danger. He has been discharged
from hospital after recovery. During the rescue and treatment operation, CMEC upheld the principles of people focus to rescue the
patient. This brought the warmth of the CMEC family to all other Chinese employees working abroad.
Sparing no effort to rescue employee of Belarus project sub-contractor
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2013
Focus on potential of fresh blood
– training of new employees
In 2013, we spent more than 938 hours of training
for over 500 employees and received 100% training
satisfaction.
Extend coverage to all levels
– Employee Assistance Program
Enhance construction of project
management teams
– CPMP Qualification Certification training
Universal coverage,
focus on training
Integrated talents
Innovate ways to enhance leadership
abilities
– comprehensive leadership training
7.2 Facilitate Career Development
All-round development is not only the ultimate dream of individual employees, but also an important guarantee
for the leap-forward development of CMEC. We closely integrate the efforts to develop human resources and
build a leading international contractor and service provider. In this process, we put our best effort into human
resources planning, employee training, cultivation and reserve of talents for international operation. We also
adopt a strategic view on talents and establish a development platform for the employees so as to give them
an opportunity to build a brighter future.
Training of new employees
7.2.3 Career Development
7.2.1 Remuneration and Welfare
We adhere to the principle of distribution according to work so that the remuneration of our employees is related
to their duties, work performance and the company’s profitability. We also uphold the principle of equal attention
to efficiency and fairness and keep deepening the reform of distribution system so that the remuneration of
employees can grow in a reasonable manner. Meanwhile, we gradually build a standard and compliant benefit
scheme in line with the actual conditions of CMEC and offer an appealing remuneration system to employees.
Our projects are scattered throughout the world. As a result, CMEC employees have to work at home and abroad.
In this context, we established the Administrative Measures on the Allowances and Vacations of Permanent
Personnel at Overseas Project Sites. Accordingly, CMEC employees working overseas can take 2 paid leaves
which total 36 days each year in China. In addition, subsidies and living allowances are provided for employees
that are permanently working abroad. By these measures, our employees can work happily and feel our care
wherever they go.
We establish and perfect the scientific and reasonable employment mechanism, launch exchange
and training programs on career planning and create, help and guide employees make career plans,
and create a sound environment for the upward career mobility of our employees. People working
at functional departments can take advantage of expanded space for their upward mobility by
developing toward management or professional. In addition, we offer more development opportunities
for employees working in functional departments, and encourage them to grow through normal
promotion, rapid promotion and exceptional promotion based on their performance.
In 2013, we started to prepare the Administrative Measures on the Career Development of functional
department staffs to provide an institutional guarantee for them to pursue career development. In 2014,
we will further manage the career development of our employees by institutionalizing managementand professional-oriented development paths to expand their upward mobility space, standardize the
management of promotion for the common development between employees and the Company.
7.2.2 Training and Development
nt
rie
-o
r ie
nt
New employees are important fresh blood to bolster our sustainability. In addition to training on orientation,
occupational protocols and team building, we also provide targeted mental training to help new employees get
prepared for their work career. Moreover, we pay attention to the combination of theory with practice and provide
new employees with opportunities to get fully involved in project operation so that they can grow quickly through
practice and get a clear picture of their future development.
ed
In 2013, we spent more than 938 hours of training for over 500 employees and received 100% training satisfaction.
t-o
Special training of employees on laws
Senior
management
position
ed
Senior
professional
position
al
on
si n
es io
o f ot
Pr rom
p
Comprehensive, systematic and unique training constitute an important approach to realizing the value of
employees and cultivating international talents. In line with CMEC’s development strategy and the development
demand of employees, we keep improving our training system, expanding and enriching training programs to
provide scheduled, step-by-step, focused, hierarchical, classified and level-based training for all employees,
provide valuable help for each employee to achieve career upward mobility and lay a solid foundation for the
company to cultivate innovative talents for international operation. In 2013, we launched a wide range of skill,
management expertise and in-service training programs for our employees.
Ordinary
employees
Test papers of employees on production safety
M
pr ana
om g
ot e m
io e n
n
54
Y-shaped career development paths for employees of
functional departments
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2013
2013
7.3 Balance Work and Life
CMEC advocates the idea of working merrily, and seeks well-balanced and coordinated relations between work
and life. Employees can take advantage of our Employee Assistance Program to address difficulties and problems
they encounter in their work and life and participate in a wide range of recreational activities so as to enjoy a
relaxed, healthy and pleasant working environment.
7.3.1 Employee Assistance Program
We vigorously implement an Employee Assistance Program (EAP) to help employees relieve their work pressure,
improve their mood, increase their enthusiasm, confidence and self-help awareness for a better career future.
In 2013, we organized a team of professional psychologists to provide psychological counseling for employees
working at overseas projects sites. The team completed a visit to employees in Belarus, surveyed and interviewed
employees working at Lukoml and Bereza, provided psychological counseling for individual employees and
completed the Report on Psychological Conditions of CMEC Employees at Project Sites in Belarus. Moreover, two
psychological manuals for employees working overseas were compiled, i.e. International Mindset, Local Actions
and Choose to Be Happy. On top of that, 5 paper psychological self-evaluation tools were designed for employees
working abroad, i.e. evaluation of psychological conditions, locus of control, ways of response, personality
characters and career anchors to provide assistance for all employees.
Spring Festival gala
Psychological counseling in Belarus
Psychological manuals for employees working overseas
7.3.2 Work Merrily
We launch a wide range of recreational, sports and friendship-building events to enrich the work and life of our
employees and enable them to lead a happy life. In 2013, we organized a table tennis match, a badminton match,
a basketball match and some friendship-building events to bring a more colorful life to employees. To extend our
corporate culture, we encourage and support employees to set up various interest groups and build a platform for
employees to develop their interests and hobbies and communicate with each other. Currently, we have set up a ride
association, a basketball association, a badminton association and several other interest groups.
To better promote happy families for employees, we organize a wealth of activities that involve their families. All these
activities aim to increase family happiness and company harmony and increase happiness among employees.
Activity of Ride Association
Employee Volleyball Match
CMEC May Cup Badminton Match
Collective Wedding Ceremony
Employees in Mountain-climbing Competition of SINOMACH
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2013
Summer camp for children of employees
Company leaders held symposiums with retired employees to seek their advice on future development
7.4 Care for Employees
7.4.2 Care for Retired Employees
Employees are an important source of power that drives CMEC’s sustainability. Therefore, we
focus on employees and innovate the way of caring for them. We treat each and every employee
as a family member by paying attention to them, caring for them and helping them.
7.4.1 Employee Benevolence Fund
In 2001, we set up a “Warmth Fund" which is intended to pool the resources of all employees to
help those that are in difficulty and address their pressing needs. Since it was established, the
fund has distributed RMB2.4195 million to 863 employees that ran into difficulties because of
illness or decease of immediate relatives. This brought much warmth and care to employees in
difficulty and helped them pull through.
Purpose
Provide financial assistance for serious illnesses, children education, illness and decease of
immediate family members to help employees address their difficulties and rebuild their life
Fund Source
Company grants and employee donations
Management
Fund Management Committee
2013
CMEC wouldn’t have developed so soundly and rapidly without the great efforts of its retired
employees. In return, we care much for the post-career development and life of retired employees.
We prepared the Medical Expenditure Reimbursement Manual to make it more convenient for
retired employees to reclaim medical expenses. Some painting, computer, photography and
dancing and other activities are organized to help them lead a rich and colorful post-retirement
life. We also regularly visit them to help those in difficulty and send our warmth to them.
7.4.3 Care for Family Members of Employees Working Abroad
Employees working at overseas project sites have to be away from their families for a long
time. As a result, they miss their families so much. To ease their homesickness, CMEC adopts
a mechanism of communication with their families every year. Though the symposiums, CMEC
communicate with their families to learn what they need, and help those in trouble. In addition,
CMEC also invites family members to reunite with these employees at project sites, and organizes
a series of activities to enhance their mutual bond. By taking care of families of employees
working overseas and getting rid of worries for them, we have successfully enhanced the
company’s cohesion and the loyalty of employees.
Warmth Fund
Loving Family Reaching out for Each other
Case
A female employee of China-East Resources Import & Export Co., Ltd, a wholly-owned subsidiary of CMEC, suffered
pregnancy-induced hypertension which led to exudative detachment of retina. To ensure the safety of both mother and
baby, a caesarean section had to be made. However, due to premature birth and hypodevelopment, the baby got a series
of complications, including pneumonia, jaundice and anemia. The huge medical expenditure added financial difficulty to the
already distressed family.
After learning this, CMEC immediately offered assistance through the “Warmth Fund”, helping them pull through and refilled her
family with happiness and laughter.
CMEC Employee Family Reunions
Symposiums of Foreign Employees’ Family Members was held
59
08
Harmony CMEC
Collaboration with Local Communities
for Common Development
CMEC adheres to the concept of “Taking Root in Society and
Rewarding Society”. In addition to providing premium products and
services, we pay much attention to the overall interest of society by
actively involving ourselves in local economic construction, public
welfare undertakings and fulfilling social responsibility.
Labuhan Angin 2×115MW Coal-fired Power Plant Project (CFB Boiler) in Indonesia
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8.1 Improve People’s Livelihood
CMEC remains committed to common development with communities where it operates. We take an active part
in local community construction, help improve the livelihood of local people and boost local social stability and
economic prosperity. In addition, we fulfill social responsibility by funding education, providing medical service,
building roads and digging wells to “feed” local community and benefit local people.
8.1.1 Improve Infrastructure
Before starting a project or investment, we would make a thorough investigation and adequate communication
with local stakeholders in attempt to well combine the pressing demands of local communities, our development
strategy and project plan to make social contribution in line with local conditions.
Donating children recreation facilities in Belarus
Picture of the Venezuela Project Department that funded
the Hope School and the project owner
Hope school in Equatorial Guinea funded and built by CMEC
Medical assistance in Belinga of Gabon
Over the years, we have strived to create a safe, convenient and beautiful living environment and build a happy
home for residents of local communities where we operate by improving local traffic, power, communication and
other infrastructure.
● We undertook the Malabo Urban Power Grid Project & Malabo 66KV Power Grid Project in Equatorial Guinea,
Imboulou Hydropower Project in Congo (Brazzaville), Luanda Power Grid Renovation and Expansion Project
(Phase III) in Angola and other power projects, which significantly improved the power conditions for local
communities. Therefore, CMEC is called “Light Envoys” by local residents.
● We strived to improve auxiliary facilities for local communities, funding the Malaysia-China Park which
symbolizes the friendship between China and Malaysia, donating children recreation facilities in Belarus and
building a canteen for college students in Malabo of Equatorial Guinea, etc. All these facilities brought much
convenience and happiness to local residents.
● We actively helped local communities solve problems they met to improve living conditions. During the project
in Sri Lanka, we provided construction equipment to dredge drainage channels for local residents. We dug and
repaired drinking water pits for livestock at OMAKANGE Village. We also helped local people improve their
environment and living conditions by building fish ponds, fruit and vegetable greenhouses.
8.1.2 Improve Medical and Education Conditions
The health and future of community residents are highly reliant on medical and education conditions. To support
local medical and education development is one of the top priorities in our strategic public welfare agenda. We
fund and build hospitals and schools in places where we operate to benefit local people.
Street lights at night in Malabo
Distributing power to thousands of households
● We paid close attention to medical conditions in local communities. In Belinga of Gabon, we joined the medical
rescue campaigns launched by local humanitarian relief organization, providing free treatment and medicine
for people in Ogooue-Ivindo Province and other remote regions where people have little access to medical
treatment and medicine. In addition, we launched a 6-day free medical assistance program to treat cataract,
hernia, malaria and other common diseases among local residents and provide free medicine.
● We attached great importance to improving fitness facilities for local residents. We donated fitness equipment
to Bereza and Lukoml in Belarus to increase the awareness of exercise among local people.
● We cared about education in areas where we undertook projects and launch a series of donation campaigns.
We built Hope schools in Venezuela and Equatorial Guinea to improve local teaching conditions, which were
well applauded by local people.
Malaysia-China Park funded by CMEC
College student canteen built by CMEC in Malabo
Dredging drainage channels
● We continued to launch philanthropy campaigns to donate school and sports supplies to local schools. We also
helped dropout children and poor college students, which was well received by local governments and people.
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2013
Family of people of different colors
2013
Local people came to congratulate on the completion of the Omotosho Phase Ⅱ 500MW Single Cycle Power Plant in Nigeria
8.2 Promote Employment
8.2.2 Integrate into Local Society
We pay close attention to the impact of our operations to local communities, fully respect local traditions and
customs and create work opportunities. We also contribute to local social stability and economic prosperity by
providing training programs and other forms to help local people improve their employment skills, get actively
involved in local communities and increase their fortune-making ability.
When operating overseas, we strictly observe local laws, respect local religions, traditions and customs.
We also carry out intensified communication and exchange with local people, treat them with honesty
and coexist with them in harmony in attempt to acknowledge each other’s affections and values.
8.2.1 Employment Localization
We adhere to a principle of localization by recruiting a large number foreign employees and training a team of local
technicians and skilled workers. We adopt a strategy of talent diversification and carry out localized operation to
boost employment locally.
● We hired more than 1,500 local people and trained a large number of workers, including 20 welders, 50 steel
benders, 50 form fixers, 50 paint workers and 30 plumbers for the Bafoussam and Limbe stadium projects in
Cameroon. As a result, we not only boosted local employment, but also improved the skills of local laborers and
brought along the development of relevant businesses locally.
During the Puttalam Coal-fired Power Plant Project in Sri Lanka, we built a Buddhist temple
for local employees and villagers as a permanent site for public religious activities, in order to
support local religions and cultures.
During the Salah-Aldeen Project in Iraq, we built a mosque near the project site for local
employees and villagers so that Muslim employees could have a place to pray every day.
During the Bereza and Lukoml power plant projects in Belarus, we actively integrated into the
local society, enhanced our communication with local people, and actively participated in local
recreational and sports activities. As a result, we successfully built strong friendship with local
residents and project owners.
● During the Bereza and Lukoml projects in Belarus, we hired nearly 1,000 local employees for geological
exploring, design, accounting, tax, transport, supply, civil engineering and installation. The sub-contracting price
totaled more than US$10 million.
Built a Buddhist temple for local community in Sri Lanka
The communications project in Angola offered many jobs Chinese employees for the Malabo Urban Power Grid Project &
to local people
Malabo 66KV Power Grid Project took a picture with local employees
Brotherhood with local people
Built a mosque for local employees and villagers in Iraq
Church donated to the local
community in Equatorial Guinea
Donated medicine and food to
disaster-hit areas in Nigeria
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66
“What we did was for the
development of Africa and the
promotion of a virtuous cycle in
their economies as well as better
living standards for the people of
Africa. This is the purpose of our
cooperation with the people of
Africa.”
– Jin Chunsheng, CMEC Vice
President
Get Africa Moved with True Hearts and Concrete Actions
2013
2013
Case
CMEC started to provide construction aid and assistance for African countries since its founding, where
we contracted many projects to improve people’s livelihood in Angola and other African countries. We
undertook a number of thermal power plant projects, hydrpower plant projects, power grid renovation ,
water supply projects, broadcasting & TV center projects and other important engineering projects, which
significantly improved the infrastructure and living conditions for local people, and laid a solid foundation
for economic growth in Africa.
In 2010, the Chinese-African People’s Friendship Association and China Radio International launched a
poll of Chinese companies operating in Africa. After extensive nominations, expert appraisal and online
voting, CMEC was selected among many candidates as winner of China-Africa Friendship Awards – Top
10 Chinese Enterprises that Moved Africa. This represented a positive validation of our active involvement
in the development process of African countries, outstanding contribution to local social and economic
development, faithful fulfillment of social responsibility and return to local people.
Participation in Love Knows No
Borders International Charity
Bazaar
Love Knows No Borders, Welfare for Mankind - CMEC Participated in the International Charity
Bazaar to Build Water Cellars for Poor Mountainous Areas in Yunnan Province
Case
On November 2, 2013, Love Knows No Borders International Charity Bazaar was held by Ministry of
Foreign Affairs. The theme of the bazaar was Water, the Source of Life: Building Water Cellars for Poor
Mountainous Areas in Yunnan Province. CMEC participated in the event as a representative enterprise,
made a donation of RMB500,000 and set up a booth for charity sales at the bazaar. Our charity effort was
highly praised and fully recognized.
CMEC has once again actively participated in this charity event, reached out helping hands for those in need,
and fulfilled its social responsibility to create a better world and a better life for people all over the world.
CMEC won the China-Africa Friendship Awards – Top 10 Chinese Enterprises that
Moved Africa
8.3 Active Involvement in Charity
CMEC calls on every employee to take an active part in charity activities and
make a better world with true hearts and concrete actions. We are actively
involved in poverty alleviation, disaster relief and voluntary services to help
those in need in a timely manner.
In 2010, we donated more than RMB640,000 to charity programs. In 2012, we
donated more than RMB310,000. In 2013, our charity donation amounted to
over RMB730,000.
CMEC won the President’s Award
The Community Chest 2012/2013 Awards Ceremony was held at the Hong
Kong Convention and Exhibition Center on June 25, 2013. At the ceremony,
The President’s Award was presented to CMEC.
Donation to Jiayao Primary School, Gangbian Donation to Jinhedimu Hope School, Zhaojue
Township of Guizhou Province
of Sichuan Province
8.3.1 Poverty Alleviation
We pay constant attention to the most vulnerable in society, doing our utmost
to lift them out of poverty and improve their living standards. In addition, we
organize our employees to donate money and materials to poor areas and
disaster-stricken people. At time of trial, we provide care and support for people
so as to maximize the effect of our help.
Donation to Liaoyuan Primary School of CMEC Assistance to poor students in Qinhai Province
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2013
8.3.2 Disaster Relief
8.3.3 Voluntary Services
In the wake of a disaster, CMEC would reach out a helping hand in a timely manner by donating
money and materials. We would also call on our employees to help those in need. In April of 2013,
1,158 employees donated RMB235,391 to areas devastated by the April 20 Ya’an Earthquakes.
We encourage and support our employees to take an active part in volunteering efforts and make contribution to
society with their own time and professional skills to create a better future.
Volunteering in SOS Children’s village
Computer operation instructions to elders
Visit to elders living in geracomium
Employees praying for victims of the Ya’an Earthquakes
Enabling African Children to Run Freely
Affections Unfolded in Waked of Disaster – Donations for Floods Victims in Sri Lanka
Case
During the construction of the Puttalam Coal-fired Power Plant Project, Sri Lanka was devastated by severe floods
which affected more than 1 million people. Concerned about the victims, CMEC donated 5 million Rupees (about
RMB300,000) to the local reconstruction effort.
Fulfill Social Responsibility to Reward Society
– Rescue Efforts after Arms Depot Explosion in Congo (Brazzaville)
Case
On March 4 of 2012, immediately after an arms depot exploded in the capital of Congo (Brazzaville), the CMEC
project team activated the emergency mechanism, and collaborated with the Chinese embassy to cope with
the emergency. We initiated a leading group for emergency rescue among Chinese companies operating in
the country, organized visits to the wounded that were receiving emergency medical treatment and collected
medicine, food, bedding and other badly needed materials to the local hospital. When learning that the hospital
ran out of Tetanus Antitoxin, we did our best to secure the supply and sent 26 doses available at the project
team to the hospital to save the lives of the wounded. In addition, we organized charity donations to help the
victims pull through and rebuild their homes. In recognition of our charity efforts, the Chinese embassy to
Congo (Brazzaville) conferred the title “Excellent Enterprise in Rewarding Local Society and Fulfilling Charity
Responsibility” on CMEC.
In Angola, many people conveniently dump their finished beer bottles on the roads or in the
grasses, so that the ground is scattered with bottle pieces. Most children from the civilian
areas run around on bare feet or with only a pair of slippers. It is common to see children cut
by pieces of glass and their feet covered in blood. When CMEC personnel in Angola realized
this, they broadcasted a public service announcement at the local radio stations at their own
expense. The announcement was aired and generated desirable social effects. The slogan
“stop throwing away empty bottles from this moment onwards and give him back the clean
ground to enable him to run freely and grow healthy” took deep root in the minds of local
people. Bottle pieces in the streets became less common and the ground became much
cleaner. Children could finally run freely and safely on the clean ground. Many local residents
would point approvingly at the clean streets and yell to the CMEC workers: “No bottles, no
glasses” with their thumbs up.
Content of Public Service Announcement:
“Given a football and a pair of feet, he could play in the African Cup or even the World Cup.
Given plenty of space and a pair of feet, he could travel all over Africa and the world.
Are you willing to see these feet bleed from wounds from broken bottles?
Are you willing to see the miserable eyes of the owner of these feet?
Are you willing to see that these feet no longer run and play football with joy?
These feet belong to a kid of Angola.
If you are a father or brother of a child, please stop throwing away empty bottles from this
moment onwards and give him back the clean ground to enable him to run freely and grow
healthy.
CMEC people from Beijing of China are more than willing to protect the healthy growth of
Angolan children with you.”
案例
Bare-footed Angolan children
showing the happiest smiles
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2013
Innovate Profit Modes for Sustainable Development
– follow the law of business development, draw on the experience
of leading enterprises, innovate management, persist in innovation,
increase competitiveness and profitability to lay a solid foundation
for attaining its strategic vision.
Outlook
In 2014, CMEC will guided by its new strategy, strive to
consolidate and improve its management, develop the
innovation positively, achieve stable business growth,
facilitate transformation and the strategic target of "the global
leading international engineering contractor and service
provider".
Ensure Service Quality, Achieve Mutual Benefit and Win-win Results
– advance professional project management, establish an advanced
and modern safety management system, adopt institutionalized,
normalized, scientific and advanced management, deliver excellent
projects to clients and share value space with partners.
Build Eco-friendly Projects for Green Earth
– pay more attention to environmental protection in regions where we
operate, integrate the concept of environmental protection into the whole
business operation process, explore green development modes, advance
energy conservation and emission reductions to cope with climate change
and exercise a concept of sustainable development.
Explore Talent Value and Increase Corporate Dynamics
– fully tap the huge human resources potential, intensify talent cultivation
and adopt a 3-tier talent training system to further mobilize the creativity of
employees and enhance the company’s competence and cohesion.
Reinforce Social Responsibility and Advance Brand Building
– take advantage of strengths in funds, technology and management to
boost local economic development, improve the livelihood of local people,
advance welfare and philanthropy and normalize social responsibility
efforts to improve corporate image.
A sea is vast, as it rejects no water. A mountain is high,
as it rejects no rocks. In the future, we will enhance our
confidence, bear in mind our missions, strengthen and refine
our business, adhere to innovations, proceed slowly but
surely in production safety and forge ahead to paint a better
future for CMEC.
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2013
Reporting Index
Table of Contents
Expert Comment
GRI Content Index
CAS3.0 Benchmark Index
Cover
Report Summary
I am glad to read the first social responsibility
The 2013 Corporate Social Responsibility Report of China Machinery
Report Summary/ Report Schedule
3.1
P1.2
repor t released by China Machiner y
Engineering Corporation (CMEC) fully demonstrates the outstanding
Engineering Corporation. As a flag of China’s
practice and performance of a Chinese company that is “going out”
Report Summary/ Release Cycle
3.3
P1.2
reform and opening drive and the development
to participate in global competition in a more responsible manner and
of China’s machiner y industr y, CMEC has
actively fulfill corporate social responsibility in overseas markets.
Report Summary/ References to CMEC
Report Summary/ Report Scope
upheld its philosophy — "Create Ideas, Achieve
Firstly, it adheres to operational compliance. CMEC maintains a well-
Report Summary/ Report Data
Dreams" in the past 35 years, contributing to the
established compliance risk prevention system to make sure that its
Report Summary/ Report Access
growth of China’s machinery industry and the
overseas business complies with local laws, regulations and rules
Report Summary/ Report Process
improvement of people's life around the world.
of relevant international organizations. This provides a powerful
Message
This Report fully displays the characteristics of
guarantee for the realization of its globalization strategy.
international engineering contracting business
Secondly, it upholds a people-focus concept. CMEC strictly observes
and CMEC’s unremitting pursuit of sustainability.
international covenants of human rights and labor standards, equally
The structure, based on six responsibility
treats each and every employee, safeguards the legitimate rights,
P1.2
3.6/3.11
3.4
P2.1
S1.6
About CMEC
About CMEC/ About Us/ Corporate Structure
2.1/2.2/2.3/2.4/2.5/2.6/2.7/2.8/2.9
topics, is both concise and clear, highlighting
responsibilities and life safety of sub-contractors, helps employees
About CMEC/ Corporate Governance/ Governance Structure
balance the pressure of working overseas and strives to create a
About CMEC/ Corporate Governance/ Investor Relationship
About CMEC/ Development Strategy
employees and social responsibility guided
people-friendly working atmosphere.
Thirdly, it actively copes with environmental challenges. In the context
Dreams", and well disclosing the essential
of deteriorating environmental crisis, CMEC not only integrates
topics. The content is reasonably arranged and
the concept of environmental protection into the whole process
well supported by detailed data. Particularly,
of engineering construction, but also leverages its own business
the part on responsibility topics systematically
advantages to provide effective and efficient solutions for clean
reviews the Company’s 35-year development,
energy power generation. What it has achieved vividly interprets the
and displays the social responsibilit y
significance of harmonious development between businesses and
DNA deeply rooted in its development to
ecological environment.
P1.5
P3.1/P3.2/G1.1/G1.4/M1.4/M1.5
shareholders, customers, environment, safety,
by the philosophy — "Create Ideas, Achieve
P1.3
P1.2
4.1/4.3/4.4
P4.1/P4.2/P4.3/P4.4/P4.7
M1.1
M1.2
Responsibility Management
Responsibility Management/ Organization System
4.2
G2.1/G2.3/G2.4/G2.5
G2.2/G5.1/G5.3/G5.4/G5.5/
G5.6/G6.2
Responsibility Management/ Responsible Communications
Responsibility Management/ Essential Issues Identification
Responsibility Management/ The stakeholders
Responsibility Management/ Honors and Recognitions
3.4/4.15
G1.3
1.1/4.14/4.17
G5.1/G5.3
2.5/4.13
P4.6/P5.3
stakeholders. In terms of expression, the Report
Fourthly, it contributes to the development of local communities. To
adopts an easy-to-understand language for
bring a happier life to local people, CMEC actively fulfills its corporate
Value CMEC/ Compliance Operation/ Comprehensive Risk Management
4.9/4.11
M1.6
better reader apprehension. A large number of
social responsibility when going out. Its operation localization effort has
logic diagrams and graphs are used to make
created more jobs for local communities and brought along relevant
Value CMEC/ Compliance Operation/ Internal Auditing
4.9/SO4
S1.6
the Report more intuitive and readable. If it is
industrial chains. The power distribution, water supply, broadcasting
Value CMEC/ Compliance Operation/ Business Ethics
4.9/4.11/SO4
S1.1/S1.3/S1.4/S1.6/M3.2
complete with more information on challenges
and TV projects undertaken by CMEC serve as sources of light,
Value CMEC
Value CMEC/ Promoting Diversification/ Engineering Contracting
4.11/4.13/EC1
P4.4/P4.7
4.11/4.13/EC1
P4.4/P4.7
4.11/4.13/EC1
P4.4
EC1
M1.5
and risks, the Report can be more balanced. In
life and development for local people and testify the Company’s
Value CMEC/ Promoting Diversification/ Trading Services
general, CMEC’s first social responsibility report
commitment to creating and sharing values with host countries for joint
Value CMEC/ Promoting Diversification/ Investments
is quite professional and excellent.
development.
Value CMEC/ Enhancing Sustainability/ Profitability
Value CMEC/ Enhancing Sustainability/ One-stop Service Capability
Value CMEC/ Enhancing Sustainability/ Financing Capacity
4.11
Value CMEC/ Enhancing Sustainability/ Innovation Capability
EC9
M1.3/M2.7
Quality CMEC
Quality CMEC/ Building High-quality Projects/ Quality
M2.5
Management System
Yin Gefei
Han Bin
Vice President of WTO Guide
Executive Secretary General of Global Compact Network China
Director of International Research Center
f o r S o c i a l R es p o ns i b i l i t y & S us t a i na b l e
Development of Peking University
Quality CMEC/ Building High-quality Projects/ Strengthening Quality
Control
Quality CMEC/ Building High-quality Projects/ Providing Genuine Services
PR5
M2.1/M2.2/M2.13
Quality CMEC/ Building Responsible Supply Chain/ Strictly Management of
the Supply Chain
EC6/HR2/HR5
M3.5/M3.9
4.9/EC6/HR2
M3.3/M3.6/M3.8
Quality CMEC/ Building Responsible Supply Chain/ Transparent
Subcontract Procurement
73
74
2013
CMEC's Quality/ Building Responsible Supply Chain/ Enhancing Mutually
Beneficial Cooperation
HR2/PR6
M3.1
Green CMEC/ Practicing Environmental Management
EN26
E1.1/E1.4
Green CMEC/ Establishing Green Projects
EN26
E2.5
Green CMEC/ Actively Tackling Climate Change/ Green Working
EC2/EN5/EN6/EN7
E1.10/E1.12/E2.15
Green CMEC/ Actively Tackling Climate Change/ Participating in
Environmental Protection
EC2/EN5/EN18
E1.6/E1.8/E2.18/E4.5
LA9
S3.1
2013
Green CMEC
Feedback Form
Safe CMEC
Safe CMEC/ Safety Production Management System
S2.18/S3.3/S3.4/S3.5/S3.6/
S3.7
Safe CMEC/ Emphasizing on Safety Training
Safe CMEC/ Implementation of Safety Inspection
LA9
Safe CMEC/ Safety Emergency Management
4.9/LA9
S2.20/S3.2
Dear readers,
Thank you for reading the Report. We are looking forward to your comments and opinions on
it, which can help us improve our social responsibility work and enhance our capacity to fulfill
social responsibility.
Thank you!
Happiness CMEC
Happiness CMEC/ Safeguard Rights and Interests of Employees/ Equal
Employment
Happiness CMEC/ Safeguard Rights and Interests of Employees/ Democratic
Management
August 2014
LA1/LA13/HR1/HR4/HR6
S2.1/S2.13
LA5
S2.3/S2.4/S2.5/S2.30
Happiness CMEC/ Safeguard Rights and Interests of Employees/ Occupational
Health
Happiness CMEC/ Facilitate Career Development/ Remuneration and Welfare
Happiness CMEC/ Facilitate Career Development/ Training and Development
Happiness CMEC/ Facilitate Career Development/ Career Development
Happiness CMEC/ Balance Work and Life/ Employee Assistance Program
S2.17/S2.20/S2.21/S2.23/S2.28
EC1/LA3
S2.7/S2.8/S2.11
LA10/LA11/HR3
G6.4/S1.2/S2.25/S2.26
LA11
S2.11/S2.12/S2.24
LA8/LA9
S2.21
Happiness CMEC/ Balance Work and Life/ Work Merrily
S2.29
Happiness CMEC/ Care for Employees/ Employee Benevolence Fund
S2.27
Happiness CMEC/ Care for Employees/ Care for Retired Employees
S2.27
Happiness CMEC/ Care for Employees/ Care for Family Members of
Employees Working Abroad
S2.29
Multiple Choice: (Please check the corresponding choice)
1. What’s your overall impression of the Report?
□ Very Good
□ Average
□ Poor
□ Very Poor
2. What do you think of the quality of social responsibility information revealed in the Report?
□ Very High
□ Fairly High
□ Average
□ Low
□ Very Low
□ Poor
□ Very Poor
3. What do you think of the structure of the Report?
□ Very Reasonable □ Fairly Reasonable □ Average
4. What do you think of the layout and presentation of the Report?
□ Very Good
Harmony CMEC
□ Fairly Good
□ Fairly Good
□ Average
□ Poor
□ Very Poor
Harmony CMEC/ Improve People’s Livelihood/ Improve
Infrastructure
EC8/SO1
S4.1/S4.4
Harmony CMEC/ Improve People’s Livelihood/ Improve Medical and
Education Conditions
EC8/SO1
S4.4
Harmony CMEC/ Promote Employment/ Employment Localization
EC7
S1.7/S4.5/S4.6
Harmony CMEC/ Promote Employment/ Integrate into Local Society
HR9
Harmony CMEC/ Active Involvement in Charity/ Poverty Alleviation
EC1/SO6
S4.9/S4.11/S4.12
Harmony CMEC/ Active Involvement in Charity/ Disaster Relief
EC1/SO6
S4.9/S4.11
to csr@mail.cmec.com, call +86-10-63312002, or send the form to +86-10-63268156 by fax. We will
S4.9/S4.11/S4.13/S4.14
carefully consider your opinions and suggests, and keep such information confidential and will not
Harmony CMEC/ Active Involvement in Charity/ Voluntary services
EC1/SO6
Outlook
A1
Expert Comments
A2
Reporting Index
Feedback Form
3.12
A3
A4
Open Question:
Do you have any opinion and suggestion on China Machinery Engineering Corporation Social
Responsibility Report in 2013? If yes, you are more than welcome to share with us:
To contact the CMEC 2013 Social Responsibility Report Compilation Group, please send an email
disclose it to any third party.
31

About CMEC

Transcription

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