Given the widespread impact of climate change on all aspects of corporate production and operation, actions to mitigate climate change are urgently needed. BEHL supports global climate initiatives and, in accordance with the International Sustainability Standards Board (ISSB) IFRS S2 Climate-related Disclosures framework and recommendations, discloses our progress achieved in aspects of climate change governance system, response strategies, risk management, metrics and targets, among others. Details can be access from 2023 Climate Action Progress Report.

Governance

• BEHL established a climate change governance structure and publicly released the Policy of Climate Change Response. We have made thorough arrangements of climate assessment and response for all business segments and monitored their actual performance.
• All business segments have established or are in the process of establishing their climate change management system to facilitate implementation of climate response measures.

Strategies

• Proactive strides – BEHL proactively aligns itself with the national climate change adaptation strategy and planning, serves China's 14^th Five-Year Plan, and contributes to China's green energy transition.
• Forward-looking planning – BEHL keeps up with new trends and focuses on the development of strategic emerging industries, relentlessly pursuing green, high-quality and sustainable development.
• Win-win collaboration – BEHL actively engages in R&D innovation and industry exchanges, and contributes its own wisdom to promote coordinated carbon reduction efforts along the entire industrial chain across multiple industries.
• Low-carbon operations – BEHL implements concrete and effective energy conservation, emission reduction, and pollution prevention measures to reduce the environmental impact of its operations and support the industry's zero-carbon endeavors.

Risks and Opportunities

• BEHL has clarified the methodology for assessing climate-related risks and opportunities and developed relevant assessment models and tools.
• Based on business reality, BEHL identified the degree of impact of seven kinds of physical risks and drew a map of BEHL's business presence on which the physical risks for each business region and their relevance are marked.
• Based on difference business segment, BEHL has identified that climate-related opportunities include those for improving resource utilization efficiency, utilizing new energy, developing new products and services, exploring new market opportunities, and enhancing adaptability of the industrial chain.