On the 99th anniversary of the founding of the Communist Party of China, CMEC officially released the 2019 CSR Report of China Machinery Engineering Corporation (the Report) to showcase its achievements in corporate social responsibilities and pay a tribute to the birthday of the Party. It is CMEC’s 7th consecutive annual CSR report, which, with CMEC’s social responsibility view (“Contribution to the World with Responsibility”) at the core, introduces the CSR practices and excellent performance of CMEC in 2019 in the five aspects of innovation & upgrading, win-win results through partnership, employee development, going green and environmental protection, and harmonious community, and demonstrates the contributions of CMEC to promoting sustainable economic, environmental and social development.

In 2019, CMEC, by centering on the strategies of the state and the arrangements of SINOMACH, adopted a full range of targeted measures to improve its market structure, kept improving the market-based operating system, accelerated innovation in science and technology, expanded high-level cooperation for mutual benefits and win-win results, resolutely defused and actively guarded against major risks, pursued progress and ensured stability, put equal emphasis on quality and quantity, continuously enhanced its ability of fulfilling the social responsibilities, kept improving CSR management, shared in its fruits of development with stakeholders, and built more healthy and sustainable infrastructures for the people to live a better life.

1. Innovation, Upgrading and Promoting Sustainable Development

CMEC closely followed the global trend of economic development, grasped the needs of the countries along the “Belt and Road” for modern energy, industry and urban construction, kept increasing the quality of traditional business such as electric power and energy, and explored in the fields of industrial construction, clean energy and smart power grids. CMEC increased its service capabilities and market competitiveness across the entire industrial chain, and offered a full range of EPC services from project contracting to standards setting and product export. CMEC increased resource input in science, technology and innovation, developed diversified services, and transformed itself into a global integrated service provider.

Photo: In May 2019, Chinese Vice President Wang Qishan witnessed the signing of the framework agreement on agricultural cooperation between CMEC, the provincial government of Pakistan’s Baloch and the Lasbela University of Agriculture, Water and Martine Sciences.

2. Combining Force, Working Together and Pursuing Win-win Results

CMEC continued to build a value ecosystem for win-win cooperation, communicated and cooperated with domestic and overseas industry leaders, steadily expanded its “circle of friends”, increased its business service capabilities, built safer, more reliable and sustainable infrastructure projects for customers, and cooperated with its partners for win-win results.

Photo: In 2019, CMEC President Fang Yanshui was invited to attend the China-Pakistan Forum on Trade and Investment Opportunities and make a keynote speech on the potential and direction of the agricultural cooperation between China and Pakistan.

3. Putting People First and Achieving Common Development

CMEC put people first and respected individualities of its employees, ensured that they are fairly treated and can acquire equal opportunities, provided them with resources and necessary supports for diversified development, improved workplace safety and their health conditions, helped them lead a better life, and ensured that they create value for and share development fruits with CMEC.

Photo: In March 2019, CMEC held a DIY activity themed “making of healthy

4. Going Green and Environmental Protection and Pursuing Ecological Progress

CMEC adhered to the strategy of “green development”, lowered the adverse environmental impacts by avoiding or trying to reduce the pollutions caused by its business operations, promoted sustainable utilization of energy, water and raw materials resources, drove the shift from pursuing traditional economic value to maximizing economic, environmental and social values, explored models of development and utilization of renewable resources and clean energy, and provided technical supports for addressing climate changes.

5. Ensuring People Lead a Better Life by Building a Harmonious Community

CMEC, in the process of its project development and construction, fully respected the human rights, identities, cultures and lifestyles based on natural resources of local residents, provided them with opportunities for taking part in project-related work, assisted those who live in underdeveloped areas in having access to better resources in education, healthcare, and cultural and sports programs, and met their expectations for living a better life.

In February 2019, the “Integrated Great Wall School” donated by CMEC to Angola, was officially put into operation

CMEC attached great importance to its CRS work, strengthened its CRS-related capability building, paid close attention to the trends of CRS and sustainable development, met the requirements on regulatory compliance, kept improving the social responsibility management system, comprehensively advanced the CRS work from the dimensions of research project, training & learning, communications and performance evaluation, increased its capability of fulfilling social responsibilities, promoted more scientific and systematic CSR management, made innovations in the forms of communication with stakeholders, made stakeholders gain better understanding of the process of CSR fulfilling capability and relevant achievements, and enhanced its CSR performance.

Research project

CMEC conducted analyses and researches in accordance with the changes of and requirements on the ESG of the Stock Exchange of Hong Kong Ltd., kept improving the regulatory compliance of ESG information disclosure, and promoted the establishment of the ESG supervisory mechanism directly under the leadership of the board of directors.

Training sharing

CMEC took part in the CSR training course for enterprises directly under the central government (Phase 2) organized by the State-owned Assets Supervision and Administration Commission of the State Council, shared its thinking about practicing responsible commercial operations in the field of international project contracting, discussed about the CSR management path and innovation model of central enterprises in the new era, and the effects on increasing the sustainable competitiveness, and provided supports for integrating into the global market and building itself into a world-class enterprise. CMEC organized full-lifecycle relationship management training for overseas EPC project stakeholders and environmental and social analysis activities in specific countries, and enhanced trainees’ understanding and coping ability of non-financial risks of overseas projects.

CSR-related communication

By means of onsite photographing from the perspective of owners, subcontractors, suppliers, local employees and communities, CMEC released its first overseas CSR video, which is entitled Achieving Common Development and Shared Growth -- CMEC’ Footprints in Angola, demonstrated its overseas practices and CSR view of “Contribution to the World with Responsibility”, and enriched the forms of communication with stakeholders. CMEC took part in the Forum on Promoting Sustainable Development of China and the Latin America, shared its experience in promoting local economic development through the Argentinian Belgrano Freight Railway Renovation Project, and communicated with enterprises, NGOs, experts and scholars on promoting sustainable development in Latin America. CMEC attended the United Nations 2019 Global CSR Summit, and displayed its CSR Report for 2018 (English), demonstrating its CSR vision and actions on the platform of the United Nations following its promotional activity of the 2015 Overseas Sustainable Development Report of Chinese Enterprises held at the headquarters of the United Nations in 2016.

Performance and results

In 2019, CMEC won the Award for Overseas Sustainable Practice Excellent Enterprises of 2019 Global Enterprise Sustainable Competitiveness Summit and its CMEC 2018 CSR Report won the Evergreen Award (One-Star Rating) of GoldenBee Excellent CSR Report 2019, winning recognitions from professional thinktanks.

In the future, CMEC will continue to take the CSR view of “Contribution to the World with Responsibility” as a guidance, actively integrate itself into the trends of economic, environmental and social development, disclose CSR information on a regular basis, strengthen communications and exchanges with stakeholders, keep innovating the forms of communication, enhanced the mutual understanding between stakeholders, and strive to contribute wisdom and strength to the sustainable development of the world!

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Scan the QR code to watch the first overseas CSR video of CMEC