The Report is printed on environmental friendly paper S handong … · 2018-11-16 · Haiyang...

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Transcript of The Report is printed on environmental friendly paper S handong … · 2018-11-16 · Haiyang...

Page 1: The Report is printed on environmental friendly paper S handong … · 2018-11-16 · Haiyang Nuclear Power Project, Haiyang, Shandong province 265116 +86-535-3871655 +86-535-3871700

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Haiyang Nuclear Power Project, Haiyang, Shandong province

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The Report is printed on environmental friendly paper

Corporate S

ocial Responsibility R

eport 2017S

handong Nuclear P

ower C

ompany LTD

.

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About the ReportReporting Period

The Report covers from January 1 to December 31, 2017, and also includes additional information beyond the stated reporting period.

Data Source

All data in the Report are from formal documents and statistical reports of SDNPC.

References

In the Report, "Shandong Nuclear Power Company" is also referred to as "SDNPC", "Shandong Nuclear Power", "the Company", and "we". "State Power Investment Corporation Limited" is expressed by "SPIC", and "State Nuclear Power Technology Corporation" is expressed by "SNPTC".

Publication Cycle

The Report is published annually and the first Report was released in 2014.

Reporting Boundary

Shandong Nuclear Power Company (see the organization chart for detailed information).

Report Compilation Principles

This Report is aligned with the Global Reporting Initiative (GRI) Sustainability Reporting Guidelines (G4), and Chinese Academy of Social Sciences (CASS) China Corporate Social Responsibility Reporting Guidelines (CASS-CSR4.0).

Report Versions and Access

The Report is available in Chinese and English, and in both hard copy and electronic versions. If you need a hard copy version or have any opinions & suggestions on the Report, please contact us through:

Tel.: +86-535-3871655Fax: +86-535-3871700E-mail: [email protected] you need an electronic version, please visit SDNPC official website: http://www.sdnpc.com

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Outlook 2018

Comments from Experts

Reporting Index

Feedback from Readers

68

69

70

71

01

02

04

05

08

Topic:

Strengthening the Party

Leadership

12

Quality Assurance

Safety Management

Fire Safety

Information Security

Financial Risk Prevention and Control

Upgrading Confidentiality Measures

26

28

32

32

33

33

24

Promoting Local Development

Promoting Local Poverty Alleviation

Supporting Cultural and EducationalDevelopment

Carrying out Voluntary Service

44

45

46

47

42

Communication and Sharing

Promoting Supplier Management

Carrying out Industry-university-research Cooperation

50

53

53

48

Public Review of Community Work Plan

Public Spokesperson for Nuclear Power Plant

SDNPC in the Eyes of Media

64

65

67

62

Construction of Nuclear SafetyManagement System

Construction of Nuclear Safety Culture

The Emergency Response Management System for Nuclear Power

Building a High-quality Team

18

20

22

23

16

36

37

39

41

Providing Clean and Efficient Energy

Environmental Monitoring

Carrying out Energy Conservation and Emission Reduction

Conservation of Biodiversity

34

Protecting Rights and Interests of Employees

Staff Training and Career Development

Caring for Occupational Health

Cordially Caring for the Employees

Creating a National Civilized Unit

Enriching Cultural and Sports Activities

56

57

59

60

61

61

54

Keeping in Mind Risk Prevention and Control

Regional Co-development with High Quality

Multi-Party Cooperationfor Win-Win Results

Giving Priority toNuclear Safety

Making Contribution through Low-carbon Actions in Shandong

Building a Big HappyFamily

Public Spokespersonfor SDNPC Brand

About the Report

Chairman’s Address

Our Mission

About Shandong Nuclear Power Company

Sustainable Development

Contents

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02 03Shandong Nuclear Power Company CORPORATE SOCIAL RESPONSIBILITY REPORT 2017

Chairman’s Address2017 was an exciting year. General Secretary of CPC Central Committee Xi Jinping solemnly declared that socialism with Chinese characteristics entering a new era, in his report to the 19th National Congress of the Communist Party of China. The government work report of the State Council emphasized that "priority should be given to ensuring clean energy generation and connection to grid", and included "safe and efficient development of clean energy" in it. The reform of the electricity market was speeding up, the development clean energy was further accelerating, and the nuclear power industry was ushering in new development opportunities. SDNPC remained true to our original aspiration and keep our mission firmly in mind, unite the construction participants and led them to push forward various tasks with full efforts and contribute to the business development of SPIC.

Party leadership was strengthened. SDNPC publicized and implemented the guiding principles of the 19th National Congress, adhered to the Party's leadership, fulfilled the requirements of fully strengthening the Party self-discipline from the four links of "learning, thinking, practicing, and understanding" to enhance the construction of the Party organization. SDNPC has added general requirements of the Party building to the Articles of Association, made the research of the Party Leadership Group a prepositive procedure for decision making, and clarified the power and responsibilities of Party Leadership Group, the company's General Meeting of Shareholders, Board of Supervisors, Board of Directors, and the Management Level, with important steps taken in the development of modern enterprise system.

Full preparation was made for production and operation. SDNPC studies and implements the Nuclear Safety Law and puts nuclear safety in the supreme position. SDNPC has established Nuclear Safety & Licensing Department , improved the nuclear safety management system, continuously promoted the development of nuclear safety culture, and enhanced the nuclear safety culture literacy of all employees. SDNPC has made full preparation for subsequent fuel load and operation through the three special pre-start up inspections organized by national ministries and commissions and the special supervision and inspection of the national "Year for Promotion of Nuclear Power Safety Management".

Risk prevention and control was intensified. In the new situation, SDNPC has improved risk awareness and strengthened the nuclear safety, industrial safety, fire safety, information security, financial security and confidential security management, strengthened the safety management of contractors in the production field, and comprehensively reinforced prevention and control measures for various risks. In 2017, the Phase I Project entered the stage of commissioning to production. Unit 1 was ready for the fuel load and Unit 2 went into the preparation stage for the hot functional test. The safety and quality maintained a stable situation, with remarkable achievements made in all tasks.

Environmental protection was enhanced. SDNPC has adhered to environmental protection in the production and construction process and vigorously promoted energy conservation and emission reduction, resources saving, and biodiversity conservation, continuously improved the system of environmental monitoring, strictly managed radioactive materials, and built "environmental-friendly" nuclear power plant. The functions of nuclear power and nuclear power enterprises in improving the energy structure and promoting the construction of ecological civilization were exerted to accelerate the transit to new energy in Shandong province.

Regional co-construction was advanced. Haiyang Nuclear Power Project is the first nuclear power project of Shandong province, and the units are the first batch built with the third-generation nuclear power technology AP1000. In its development, SDNPC has cooperated with all units of the project for win-win results, maintained harmonious symbiosis with the localities, and shared happiness and harmonious with the surrounding residents, promoted healthy and continuous development of the industry with professional advantages, and created a sustainable and responsible value chain. Through constantly promoting the development of local industries, conducting targeted poverty alleviation, providing cultural and educational support, helping disadvantaged groups and carrying out volunteer service activities, the company has developed a harmonious relationship with the local area.

Open and transparent operation was maintained. SDNPC pursues harmonious coexistence, conducts public communications in an open, transparent and honest manner, innovates ways of communicating with stakeholders, expands participation channels, builds a good public image and responsible brand, and creates a harmonious development environment of YIMBY (Yes-In-My-Back-Yard). In order to better promote social responsibility management, SDNPC strengthens the Party Group's leadership over social responsibility, with the Secretary of Party Leadership Group serving as head of the Social Responsibility Leadership Group.

In 2018, the company will enter a new period of nuclear operation. SDNPC will continuously adhere to the Party's leadership, seek progress while maintaining stability, stick to new development concepts and high-quality development requirements, strive forward to ensure nuclear safety and build a long-lasting SDNPC.

Secretary of Party Leadership Group and Chairman of SDNPC

Wu Fang

02 03Shandong Nuclear Power Company CORPORATE SOCIAL RESPONSIBILITY REPORT 2017

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04 05Shandong Nuclear Power Company CORPORATE SOCIAL RESPONSIBILITY REPORT 2017

Our Mission About Shandong Nuclear Power Company

Company profile Founded in Haiyang, Yantai, Shandong province in September 2004, Shandong Nuclear Power Company (hereinafter referred to as SDNPC) is a subsidiary of the State Power Investment Corporation Limited and the owner of Haiyang Nuclear Power Plant - the supporting project for the introduced third-generation AP1000 nuclear power technology. It is fully responsible for the design, construction, and operation management of Haiyang Nuclear Power Project.

Haiyang Nuclear Power Plant is surrounded by the sea on three sides, with broad vision and flat terrain. It has one of the best sites among China's built, under-construction, and to-be-built nuclear power plants. Haiyang Nuclear Power Project is planned to construct six 1,000MW-level PWR units while reserving space for another 2 units. The design service life of the two 1,250MW-level

Since its establishment, SDNPC has taken nuclear safety culture as its guideline and established and improved the management procedure system, quality assurance system, safety management system, and experience feedback system in accordance with the national nuclear safety laws and regulations, ensuring that "safety, quality, progress, investment, and risk" are controllable and under control and proactively promoting the construction of Haiyang Nuclear Power Project.

State Nuclear Power Technology Corporation

Shandong Development Investment Holding Group Co., Ltd.

Yantai Blue Sky Investment & Development Co., Ltd.

China GuodianCorporation

China National NuclearPower Co., Ltd

Huaneng Nuclear Power Development Co., Ltd.

Six shareholders of SDNPC

Fully introducing, digesting and absorbing the third-generation nuclear power

technology to promote re-innovation;

Establishing and improving the nuclear power management system to achieve

high-quality construction and safe operation of nuclear power plant;

Building a human-oriented, honest and transparent working environment to provide a

career development platform for employees of SDNPC;

Cultivating talents to contribute to nuclear power development in State Power

Investment Corporation (SPIC) and China;

Strengthening the awareness of being a community of shared interests with our partners

and providing a platform for the development of related industries;

Making contributions to regional economic prosperity and environmental protection,

taking an active part in public welfare activities, shouldering social responsibilities, and

striving to be an excellent corporate citizen.

Ensuring the most valuable and safest assets for our shareholders and repaying them

with long-term benefits;

We are dedicated to fulfill our commitments by doing the followings: AP1000 nuclear power units of Haiyang Nuclear Power Plant Phase

I Project is 60 years, and Unit 1 and Unit 2 started first concrete placement respectively on September 24, 2009 and June 20, 2010. In 2017, the Phase I Project entered the stage of commissioning to production, with Unit 1 ready for fuel load and Unit 2 to undergo the hot functional test.

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06 07Shandong Nuclear Power Company CORPORATE SOCIAL RESPONSIBILITY REPORT 2017

Labor Union Committee

Discipline InspectionGroup

Party Leadership Group

Planning & Project Control Department

Safety & Quality Assurance Department

Design Management Department

Construction Management Department

Commercial & Contract Department

Procurement Department

Production Planning Department

Nuclear Safety & Licensing Department

Engineering Department

Operation Department

Maintenance Department

Health Physics Department

Training Department

Production Preparation Department

IT & Documentation Department

Logistics Department

General Office(Legal Affairs Department)

Human Resources Department(Social Insurance Center)

Financial Department

Audit Department

Corporate Culture Department

Discipline Investigation & Supervision Department

Commissioning & Start-up Management Department

Board of Supervisors

General Meeting of Shareholders Board of Directors The Executive

Organization Structure Corporate GovernanceSDNPC has constantly refined the modern enterprise system, established a scientific, standardized, and reasonable corporate governance structure, and improved the mechanism of "decision making on major issues, appointments and removals of important cadres, major projects, and the use of large amounts of money". In order to implement the requirements of the Party Building Work Conference of State-owned Enterprises and the overall requirements of corporate governance according to law, the company has completed the election and transition of Board of Directors, Board of Supervisors and the new leadership.

In 2017, in response to the Party Central Committee's important deployment to strengthen the reform of state-owned enterprises and the Party building, SDNPC added the overall requirements of Party building to the Articles of Association, clarifying the leading position of the Party Leadership Group in corporate governance. The power constraint mechanism was fully implemented and the

SDNPC adheres to law-based, democratic, and scientific decision making. In 2017, four meetings of Board of Directors and 47 meetings of the Party Leadership Group were held to review 118 issues of "decision making on major issues, appointments and removals of important cadres, major projects, and the use of large amounts of money" to command the direction, grasp the overall situation and prevent risks.

Leadership team

06 Shandong Nuclear Power Company

implementation measures for the company's collective decision-making system for "decision making on major issues, appointments and removals of important cadres, major projects, and the use of large amounts of money" were optimized, specifying the power and responsibilities of Party Leadership Group, the company's General Meeting of Shareholders, Board of Supervisors, Board of Directors, and the Management Level, with important steps taken in the development of modern enterprise system.

Secretary of Party Leadership Group, Chairman

President, Deputy Secretary of Party Leadership Group

Standing Committee Member of Party Leadership Group, Vice President

Standing Committee Member of Party Leadership Group, Vice President

Standing Committee Member of Party Leadership Group, Vice President

Standing Committee Member of Party Leadership Group, Chief Financial Officer

Standing Committee Member of Party Leadership Group, Chief Engineer

Standing Committee Member of Party Leadership Group, Secretary of Discipline Inspection Group, Chairman of Labor Union

Wu Fang

Zhang Zhen

Li Zhongzhe

Guo Lei

Guo Hong'en

Yan Yan

Pang Jianguo

Wei Guangjun

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08 09Shandong Nuclear Power Company CORPORATE SOCIAL RESPONSIBILITY REPORT 2017

Sustainable Development

Social Responsibility Philosophy System SDNPC has established a corporate culture system of "led by nuclear and joined with heart".

The report of the 19th National Congress pointed out that "the development of clean energy is important for improving the energy structure, ensuring energy security and promoting the construction of ecological civilization", and emphasized that a clean, low-carbon, safe and efficient energy system should be established. The power market reform is speeding up and the development of clean energy is quickening the pace, bringing opportunities and challenges to the development of nuclear power.

In the 2017 government work report of the State Council, it was stressed that "priority should be given to ensuring clean energy generation and connection to the grid", and "developing nuclear power in a safe and efficient way" was included in the government work report. In the same year, the Nuclear Safety Law of the People's Republic of China (hereinafter referred to as the "Nuclear Safety Law") was promulgated. As a top-level law in the field of nuclear safety, the Nuclear Safety Law is an important part of the legal system of national security, and is the result of fully drawing on advanced international experience and comprehensively summarizing the good practice of nuclear safety supervision in the past 30 years. Nuclear safety is related to national safety, and China's nuclear power industry has entered a new stage of development.

According to the latest situation, SDNPC has released the 13th five-year plan, medium and long-term development plan and three-year rolling plans, proposed new development goals and formulated supporting measures to provide regulations for the company's sustainable development.

Social Responsibility Promotion

In 2017, in order to bet ter promote social responsibil i ty management, SDNPC exploited the organizational advantages of state-owned enterprise and improves the institution of social responsibility management, strengthened the Party Leadership Group's leadership over social responsibility work, with the Secretary of Party Leadership Group serving as head of the Social Responsibility Leadership Group.

In 2017, GoldenBee CSR Consulting offered special training sessions on social responsibility to leaders of all departments and CSR liaison staff, which covered the integration of social responsibility into corporate management, social responsibility communication, social responsibility project planning, and guidance for state-owned enterprises' implementation of social responsibility, etc.

Organizational System Construction CSR Capability Enhancement

Management concept action guide

Programmed

Informationized

Streamlined

Human-oriented

Safety conceptaction guide

Risk control

Defense in depth

Prudent decision-making

Safety first

Quality conceptaction guide

Follow procedures

Focus on details

Control the progress

Make constant improvement

Work conceptaction guide

Do It Right the FirstTime

Missions conceptaction guide

Develop quality nuclear power projectCreate good operational performance

Cultivate outstanding employeesDedicate to low-carbon clean energy

Values conceptaction guide

Loyalty

Responsibility

Practicability

Innovation

Visions conceptaction guide

Technical model

Management benchmarking

Talents' paradise

Long-lasting SDNPC

HarmonySocial Responsibility

Leadership GroupSocial Responsibility

Working Group Each department

Supervise the social responsibility work

Evaluate the performance of the social responsibility work

Review and issue social responsibility report

Promote social responsibility work

Organize social responsibility training

Carry out social responsibility publicity

Prepare social responsibility report

Carry out social responsibility practice

Provide information for

social responsibility report

Define strategic direction of the social responsibility development

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10 11Shandong Nuclear Power Company CORPORATE SOCIAL RESPONSIBILITY REPORT 2017

Materiality Issues Analysis Stakeholder Engagement

In 2017, we collected opinions of all sides from various channels to make the Report zoom in on important informations that the company and stakeholders were concerned about. Through the management meetings, we understood the company leadership's attention to various social responsibility issues, and solicited suggestions from external experts of corporate social responsibility, and collected opinions of the stakeholders on the topics through WeChat, websites, public open days and so forth. Based on the expectations of external stakeholders, the company's operating performance, the relevant requirements of social responsibility standards at home and abroad, and through the investigation of key departments, the issues were ranked in accordance with the level of importance to the corporation sustainable development and to stakeholders, thus disclosing information on materiality issues in the Report.

Compilation process of SDNPC CSR Report

Influence on stakeholders

Importance of enterprise sustainable development

Highest

HighestHigh

11

13

09

15

0405

12

08

06

14

07

03 01

02

10

Contribution to education11

Quality monitoring13

Voluntary activities09

Humane care15

Green construction04

Occupational health05

Growth of contractors12

Growth of young talents08

Publicity06

Communications and exchanges among industries

14

Equipment localization07

Information disclosure03

Nuclear safety review01

Nuclear safety training02

Industrial safety10

Report compilation and design

CSR Report of SDNPC

Reviewed by departments Approved by the executives

Opinions from stakeholdersNational and international macro policiesAnalysis of domestic and foreign social responsibility standardsIndustry benchmarking and external reports benchmarking

The development strategy andplanning of SDNPCInternal information gatheringReport kick-off and training sessionCommunications and interviews among departments

Group of the Report compilation

Group of social responsibility

experts

Stakeholders Communication effects

Governments

Shareholders

Employees

Expectations and requirements Communication channels

Suppliersand

contractors

Industryorganizationsand partners

Community

Strategic cooperation with local governmentsPromoting local poverty alleviation

Gaining support from investors and shareholders

Creating a harmonious and caring work atmosphere

Paying tax pursuant to law

Compliance operation

Promoting local development

Safe construction and operation

Safe production

Stable operation

Investment return

Honoring commitments and fulfilling contracts

Mutual benefit and win-win result

Open and fair procurement

Occupational health & safety

Work reporting

Information disclosure

Research and discussion

Shareholders' meeting

Company reports

The Board of Directors

Authorized training

Experience sharing meeting

Workers Congress and trade union

President' liaison staff

Resource sharing

Experience sharing

Joint training of talents

Subject research

Seminar

Promoting industry development

Driving the mutual development of upstream and downstream partners

Serving community constructionand development

Supporting the cause of public welfare

Environmental protection

Community publicity

Employee volunteer activities

Creating a good external environment for corporate development

Culture and sports association

Family open day

Salaries and benefits

Personal development

Education and training

The public

Continuous improving public trustProtecting ecological environment

Information disclosure

Nuclear safety

Knowledge publicity

Public Open Day

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12 13Shandong Nuclear Power Company CORPORATE SOCIAL RESPONSIBILITY REPORT 2017

Strengthening the Party Leadership

Topic

Staying True to the Mission, Congratulating the 19th CPC National Congress' Holding

Publicizing, Implementing, Thinking over and Practicing the Requirements of the 19th CPC National Congress

In October 2017, the Party's 19th National Congress was convened. This was the epoch-making event and milestone in the course of the development of our party and country. The Party's 19th National Congress has made important political statements including socialism with Chinese characteristics has entered a new era and the principal contradiction facing Chinese society in the new era is that between unbalanced and inadequate development and the people’s ever-growing needs for a better life, and makes overall deployment for promoting socialism with Chinese characteristics

In accordance with the deployment of the Party Leadership Group, SDNPC has studied and publicized the requirements of the 19th National Congress in a deep-going way, and comprehensively implemented the requirements of strengthening the Party discipline from the four links of "learning, thinking, practicing, and comprehending", intensified the Party building and ideological and political research, and promoted employees at all levels to arm their mind, guide practice and promote work with the Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, so as to steadily regularize and institutionalize the requirement of "achieving a good understanding of the Party Constitution, Party regulations, and major policies and meeting Party standards".

SDNPC kept our mission in mind, put forth efforts to "learn", "understand", and "practice", armed with Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era to guide the practice and promote the work, and implemented the new ideas of the 19th National Congress throughout the project construction in accordance with the general requirements of the Party building in the new era.

Party Day activities for front-line employeesStandardized "Party branch general meetings, meetings of Party branch committees, Party Group meetings, and Party lectures" of Party branches

Deployment for study SDNPC vigorously advocated the striver-oriented culture and guided Party members and cadres to fortify their ideals and beliefs, fully implemented the general requirements of the Party building in the new era, and greatly promoted the scientific level of Party building. In accordance with requirements of the 19th National Congress, we will press forward to build a world-class enterprise with global competitiveness, and actively develop a high-quality professional entrepreneurship team to promote scientific development.

Implementation

The projects on Party building and political research were submitted by Party branches based on the actual situation, which formed a good atmosphere for Party construction and political research, cemented the combination of theory research and practice, and promoted the development of businesses.

In order to implement the requirements of the 19th National Congress, SDNPC actively participated in the meetings held by the higher-level Party groups, timely conveyed and implemented the meeting requirements based on the actual conditions. At the Party Leadership Group level, 117 specific measures from 8 aspects in 23 action items have been developed to ensure the requirements of the 19th National Congress are communicated and understood by all Party members and employees.

The company's Party Leadership Group played an exemplary demonstration role in promptly organizing the study of the work report of the 19th national congress and exchanges of learning experience. The employees were organized to watch the live broadcast of the opening of the 19th National Congress, and besides, materials of the 19th National Congress were compiled, books were bought, and special websites were created for employees at all levels to study and understand the essence of the report thoroughly. The company's leaders went to the Party building contact points to publicize the requirements of the 19th National Congress and Party branches organized employees to study in various forms.

12 13Shandong Nuclear Power Company

and the Party building in the new era.

CORPORATE SOCIAL RESPONSIBILITY REPORT 2017

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14 15Shandong Nuclear Power Company CORPORATE SOCIAL RESPONSIBILITY REPORT 2017

Strengthening the Party Organization ConstructionThe report of the 19th CPC National Congress includes "comprehensively strengthening the Party discipline" into the basic strategy of upholding and developing socialism with Chinese characteristics in the new era, which fully highlights the new historical role and significance of Party building. In 2017, the corporate culture construction committee of Haiyang Nuclear Power Project was renamed "Party building co-construction working committee".

SDNPC has combined the guiding principles of the 19th CPC National Congress with the normalization and institutionalization of "achieving a good understanding of the Party Constitution, Party regulations, and major policies and meeting Party standards" and made the guiding principles of the 19th National Congress the most important content of "Party branch general meetings, meetings of Party branch committees, Party Group meetings, and Party lectures" and formulated programs such as the Implementation Plan for "Achieving a Good Understanding of the Party Constitution, Party Regulations and Major Policies and Meeting Party Standards" and the Plan for Pioneer Creations by Party Members. The learning system of "three meetings and one lecture" were promoted through

SDNPC has issued a five-year rolling plan for the Party building and established the system of Party building contact points. Through a comprehensive straightening, the Party building systems are classified into types of organizational management, Party affairs, special deployments, supervision and management, and standards and procedures. 17 new procedures and work guides including the Work Rules of the Party Leadership Group were formulated. The standardization of Party branches were enhanced, with the training of Party branch secretaries actively carried out, the Work Manual for Party Branches compiled and distributed, and the "Party member activity day" set up. The inspection and assessment of Party branches was strengthened, the system of Party building experience feedback was perfected to strengthen exchanges of experience. The Party building and ideological political research society has been established to carry out research on Party building and political research and promote the application of achievements. The company is equipped with full-time and part-time Party affairs personnel and provides them with intensified training, and has led 14 Party branches in accomplishing the general election. The rectification and implementation of the democratic life meeting of the leadership and the refinement of the Party building reporting and appraisal are carried out steadily.

SDNPC implemented the "Two Responsibilities" for the construction of Party conduct and governance integrity, enhanced the publicity and education of anti-corruption and advocating integrity, strictly performed the "Eight Provisions" of the central committee and the "five prohibitions and 30 restrictions" of SPIC. We prevented and controlled corruption risks dynamically, improved the supervision mechanism, and strengthened oversight of key fields and links. We deepened the cooperation with local procuratorates and discipline inspection commissions, pushed forward "clean and

SDNPC has combined the requirements of the 19th National Congress with the ideological and moral education for employees. Through meetings of Party Leadership Group, Party building work meetings, monthly Party-mass regular meetings, etc., the research and deployment of ideological and political work were strengthened, employees' ideological state was surveyed and analyzed, symposiums for non-Party personnel were hold, and face-to-face communication between employees and key leaders were organized. The channels for employees to make suggestions were improved, attention was paid to the workers' forum, and the research and implementation of feedbacks and suggestions of Party members were properly conducted.

We have carried out activities of striving for excellence such as "one branch, one brand" "Party member taking the lead in ensuring safety" and "carrying forward the spirit under the Party leadership" deepened the standardization of Party branches, the construction of Party building positions, the brand building, and established

Solidly promoting the normalization and institutionalization of "achieving a good understanding of the Party Constitution, Party regulations, and major policies and meeting Party standards"

Improving SDNPC's Party building system Combating corruption and upholding integrity, and continuing to deepen the

compliance of Party conduct and governance integrity

Strengthening the ideological and political education of employees

Strengthening the construction of Party building brand

The first branch of the general Party branch of the company's maintenance department won the title of the first primary-level demonstration Party branches of central enterprises.

SDNPC has 1,430 employees in total, including

661 Party members. The proportion of Party members

has maintained 46 % - 48 % in recent years. In 2017,

SDNPC has developed a total of 18 Party members.

14 15Shandong Nuclear Power Company

honest governance" and "joint development of the enterprise and the procuratorate". In addition, activities of publicity and education month themed on "anti-corruption and advocating integrity governance" were carried out, and the program of "high-quality project and excellent cadres" was created. SDNPC also organized Party members and cadres and 14 project participant units, a total of 122 people, to visit Yantai education base of clean and honest administration for warning education. Moreover, it launched the construction of internal control compliance system.

characteristic Party branches to give full play to their principal function and the vanguard and exemplary role of Party members. The Party building system was developed extensively in a deep-going way, promoting the Party building and co-construction and building a community of shared interests based on the project.

the Party organization secretary's Party lectures and the learning platforms, so as to enhance Party members and cadres' "four consciousnesses" of maintaining political integrity, thinking in big-picture terms, following the leadership core, and keeping in alignment. Activities on the 96th anniversary of the founding of the Party were carried out with all Party members seriously answering the "one tenet, one method, and one self-discipline" and quantitative assessment was carried out to strengthen the daily management and supervision of Party members. Moreover, the Party committee central group's study and dual-level organizational life were conducted to promote the building of a team of qualified Party members and realize normalized learning and practice and effective work.

CORPORATE SOCIAL RESPONSIBILITY REPORT 2017

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16 17Shandong Nuclear Power Company CORPORATE SOCIAL RESPONSIBILITY REPORT 2017

Giving Priority to Nuclear Safety

Nuclear safety is fundamental to the development of nuclear power companies. SDNPC has studied and implemented the Nuclear Safety Law and abided by the principles and guidelines of "life paramount, safety first" proposed in the report of the 19th National Congress, and put nuclear safety in the highest position. The company implemented the deployment requirements of the national "year for nuclear power safety management improvement”, refined the nuclear safety management system, continuously promoted the development of nuclear safety culture, and upgraded the nuclear safety culture literacy of all employees. This is of great significance to ensuring the energy supply and safety of Shandong province, realizing the optimization of power structure and sustainable development, helping protect the ecological environment, enhancing the comprehensive strength, and raising the level of industrial technology.

01

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18 19Shandong Nuclear Power Company CORPORATE SOCIAL RESPONSIBILITY REPORT 2017

Construction of Nuclear Safety Management SystemNuclear safety is the cornerstone for social, governmental, and public harmony and stability. SDNPC strengthened the construction of nuclear safety management system from the aspects of organizations, systems, procedures etc. with continuous improvement. In nuclear radiation supervision, handling of nuclear accidents, conventional island construction and operation, emergency support, responsibilities were clarified and concerted efforts were made to jointly safeguard nuclear power safety.

In 2017, Unit 1 of Haiyang Nuclear Power Project completed the hot functional test according to the procedure and entered the production stage. SDNPC has attached great importance to nuclear safety and carried out independent supervision of nuclear safety with specially-assigned persons. Nuclear safety engineers carry out online supervision and nuclear safety risk assessment, put forward suggestions on nuclear safety risks, conduct in-process supervision and post-project evaluation, and are allowed to report the nuclear safety situation directly to the chairman of Board of Directors when necessary. The company exercises the safety production responsibility system, follows the guideline of "managing safety of production", ensures the implementation of the system of "Party and management share the responsibility, and dual duties for one position", and improves the nuclear safety management system.

The Nuclear Safety Review Committee is the company's highest-level supervision institution of nuclear safety issues. In 2017, the company held nuclear safety review meetings on a regular basis to put forward suggestions and actions based on the effectiveness of foreign materials exclusion and corrective measures, and the compliance of the review of incident handling. The meetings have promoted the establishment and improvement of the company's nuclear safety system.

According to regulations, SDNPC is supervised and inspected by related government departments and SPIC, and analyzes and implements opinions and suggestions received for rectification. All key milestones of Haiyang Nuclear Power Project have been reviewed, approved, and witnessed by the National Nuclear Safety Administration.

Deepening Safety Supervision

SDNPC has established and implemented an operation experience feedback system, collecting operating experience of domestic and foreign power plants, analyzing the causes of major internal and external accidents, and carrying forward the experience to formulate preventive measures after digestion and absorption, so as to prevent accidents. The internal and external operating experience of power plant is incorporated into the pre-job briefing, the pre-shift briefing, training materials and regulations, with the corresponding requirements included in the system.

SDNPC works closely with the World Association of Nuclear Operators (WANO) and China Nuclear Energy Association, and aligns with other power plants through various ways. With the membership of WANO Atlanta Centre, the company actively conducts benchmarking with American power plants, absorbs experience in the industry, and improves the management level. In the meantime, self-assessment was carried out in a targeted way to identify problems and verify the effectiveness of corrective measures.

In March 2017, WANO-AC visited Haiyang Nuclear Power Plant Unit 1 as part of the follow-up procedure of the pre-

Strengthening Experience Feedback and Peer Review

SDNPC emphasises peer review and pursuits excellence. In December 2017, an expert panel consisting of the leader of the PSUR team and the team leader of Organisation and Administration of WANO conducted a pre-visit to Haiyang Nuclear Power Plant Unit 2.

In 2017, WANO conducted a pre-visit of PSUR and CPO to Haiyang Nuclear Power Plant Unit 2

startup peer review (PSUR) After conducting on-site inspection and Crew Performance Observation (CPO), the review team believed that the operation of the unit has improved significantly.

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20 21Shandong Nuclear Power Company CORPORATE SOCIAL RESPONSIBILITY REPORT 2017

Construction of Nuclear Safety Culture In April 2017, the National Nuclear Safety Administration released the Characteristics of Nuclear Safety Culture. With the ultimate goal of achieving fundamental safety, guided by the Characteristics of Nuclear Safety Culture and based on the development features of the nuclear power industry, SDNPC established a standardized and systematic nuclear safety culture system. Through nuclear safety culture training and a rich variety of nuclear safety culture activities, we strengthened the cultivation of safety awareness to embed into the daily work of employees.

The management at all levels was organized to conduct safety culture lectures. Decision-makers were organized to publicize nuclear safety culture. Members of the leadership, managers of departments and heads of main offices were invited to give thematic lectures on the implementation of nuclear safety culture requirements in the management field. On June 27, SDNPC held a special lecture on nuclear safety culture for all employees. Wu Fang, Secretary of Party Leadership Group and Chairman of SDNPC, gave a lecture titled "Cultivating Correct Thinking Habits of Nuclear Safety Culture", which was attended by nearly 1,000 people including leaders, heads of departments and worker representatives of SDNPC.

The system of work observation and guidance by the management is implemented. Leaders at all levels related to production carry out work observations on site every month to find opportunities for improvement, strengthen good practices and correct bad behaviors. The results of observation are kept in the information system for the quarterly trend analysis.

Human error prevention training was conducted and related standards were formulated. SDNPC has developed human error-proof tools and training materials for the management level and the working level, and formulated detailed codes of conduct for employees in the fields of operation, maintenance, technology and radiation protection, with teaching videos made for intensive training. A human error-proof laboratory has been set up, which is equipped with full-time instructors. Human error-proof trainings and re-trainings are carried out regularly, and human error-proof skill competitions are held annually to strengthen systematic training and application of human error-proof tools.

SDNPC has developed a management procedure for promoting nuclear safety culture, and formulating and implementing the annual nuclear safety culture promotion plan annually for the promotion of nuclear safety culture.

Human error clock

Establishing excellent performance starts with reducing human errors. SDNPC timed human-error in real time so as to alerting, reminding staff to pay attention to and prevent Human error. SDNPC started trial operation of the human-error clock at the end of 2015 which calculated the safe operation time in hours. The human-error clock was officially operated in 2016. The human clock is in three levels (Level-1 for power plant, Level-2 for department, and Level-3 for division). When human-error occurs, the related level clock will be set to zero.

Training of Nuclear Safety Culture

Strengthening Safety Awareness of All Staff

SDNPC launched various forms of activities to strengthen the responsibility awareness of all staff. The company has established the "nuclear safety day", and organizes thematic publicity activities and carries out nuclear safety culture knowledge contests every year. The TOPIC session before meetings was institutionalized to strengthen the feedback

of safety culture concept and experience. Management and behavioral deficiencies were detected through themed forums of safety culture and benchmarking and other special activities. Safety publicity was carried out through WeChat, TV, internal publications, web pages, posters, and other channels to create a good atmosphere of security.

A transparent reporting culture is advocated, with positive guidance and rewards provided for those who actively report problems. The cause analysis ability of personnel in all fields is cultivated and enhanced to improve the efficiency of problem solving and prevent the recurrence of accidents.

The nuclear safety culture index has been set to regularly monitor changes in nuclear safety culture trends. A questionnaire survey on nuclear safety culture was carried out to identify strengths and weaknesses related to nuclear safety culture and understand the general awareness and recognition of nuclear safety culture and make comprehensive self-assessment of nuclear safety culture in the production field.

Establishing and implementing the Corrective Action Program (CAP)

Monthly monitoring and comprehensive evaluation of safety culture were conducted

Loading operation skills competition

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22 23Shandong Nuclear Power Company CORPORATE SOCIAL RESPONSIBILITY REPORT 2017

The Emergency Response Management System for Nuclear Power SDNPC has made full preparations in emergency documents, facilities, personnel, etc. and established a sound nuclear emergency response system. A perfect emergency response organization and a complete nuclear emergency plan system have been established, with facilities and equipment equipped and the management system established to ensure that facilities and equipment are available at all times. Through stringent emergency response training and drills, we constantly improve personnel's capability and common sense of emergency response to provide reliable emergency support for power plant operation.

According to national regulations, before the first fuel load, a joint on-site and off-site drill by nuclear emergency organizations of the province (autonomous region and municipality directly under the central government) and the nuclear power plant shall be held. In order to ensure a smooth drill, the company cooperated with Shandong Nuclear Emergency Response Office and Haiyang Nuclear Emergency Office to make full preparations.

On June 23, 2017, Shandong province carried out the first joint nuclear emergency drill code-named "Haiyang-2017". The drill was led by the Shandong Province Government, and more than 20 member units of the nuclear emergency committee, including the office

In September 2017, the National Nuclear Emergency Response Office gave feedbacks on the first pre-start up joint drill for nuclear accidents of Haiyang Nuclear Power Plant. The national evaluation group stated that the first joint drill had fully demonstrated the nuclear emergency preparation and response capabilities of Shandong province and the Haiyang Nuclear Power Plant, tested the feasibility and effectiveness of the nuclear emergency plans and emergency procedures, and trained and tested the ability of nuclear emergency organizations and professional forces at all levels to cope with severe accidents of Nuclear Power Plants; the expected objectives of the drill were successfully accomplished, and requirements of relevant national regulations on the first pre-start up joint on-site and off-site drill for Nuclear Power Plant were met. The success of this exercise marked the completion of on-site and off-site emergency preparations of Haiyang Nuclear Power Plant.

The joint on-site and off-site nuclear emergency drill before Unit 1 fuel load

of scientific and technological industry of national defense in Shandong province and the provincial environmental protection department, participated. It examined the effectiveness of nuclear emergency plans and related emergency procedures, the emergency response and coordination capabilities of on-site and off-site emergency organizations of Shandong province and the Haiyang Nuclear Power Plant.

Building a High-quality TeamIn order to ensure the safety, quality, environment, progress and effective control of cost during the production and operation of Haiyang Nuclear Power Project, every employee must undergo appropriate training to obtain the authorization and take full responsibilities corresponding to the authorization before performing various tasks.

By the end of 2017, 1,363 employees of the company had obtained basic safety authorization, and the training program on 214 posts in the production field had been formulated, with 648 employees completing all courses in the training program and granted the post authorization.

On the basis of comprehensive authorization training for all posts, SDNPC actively organized personnel at all levels to participate in the management skills and leadership training.

Invited WANO experts to conduct work inspection and guidance training, which laid a foundation for the improvement of work inspection and guidance skills of the company's division heads and the management level.

Organized shift chief-operators and simulator instructors to participate in WANO leadership training courses for senior managers and shift chief-operators and communicate training results.

Organized part of managers and divisions heads to take the cadre management training courses.

Organized supervisors, shift leaders and operation personnel to participate in the management skills training in three groups.

In order to keep the operators familiar with the unit interface operation, operation procedures and the code of conduct for personnel in the main control room, and to promote effective coordination between team members, SDNPC strengthens the operators' capability of performing operations and fault handling that are not frequently encountered, maintains and improves the skill level of operators in operating and controlling the unit. The 2017 Operator Training Plan was developed to launch the simulator recurrent training and intensive training of operators in groups. The work shifts of operators were carried out and the management of operators license validity was enhanced to make the operators more familiar with the system equipment arrangement, operating requirements and operating characteristics, so as to deepen their theoretical knowledge through practicing, increasing their practical operating experience and improving their comprehensive strength.

23

Emergency response command center operator broadcasting

Emergency response document inspection

Emergency response command center-Power Plant condition

monitoring

The authorization is divided into three categories

Basic safety authorization

Post authorization for production personnel

Special/part-time authorization

42 employees

118 employees

7 employees

By the end of 2017:

possess the "Senior Operator License"

possess the "Operator License"

passed the operator license examination and were applying for the license

CORPORATE SOCIAL RESPONSIBILITY REPORT 2017

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24 25Shandong Nuclear Power Company CORPORATE SOCIAL RESPONSIBILITY REPORT 2017

02 Keeping in Mind RiskPrevention and Control

The report of the 19th National Congress puts forward that we should resolutely win the battle of preventing and resolving material risks, targeted poverty alleviation, and pollution prevention and control. Safety and quality are the basis for the healthy development of enterprises. Safe production concerns the safety of people's lives and property and state-owned assets. Under the new situation, SDNPC has strengthened nuclear safety, industrial safety, information security, and confidential security management, strengthened risk prevention, improved risk database, implemented risk prevention and control measures, and maintained a good situation of safe production.

02 Keeping in Mind RiskPrevention and Control

The report of the 19th National Congress puts forward that we should resolutely win the battle of preventing and resolving material risks, targeted poverty alleviation, and pollution prevention and control. Safety and quality are the basis for the healthy development of enterprises. Safe production concerns the safety of people's lives and property and state-owned assets. Under the new situation, SDNPC has strengthened nuclear safety, industrial safety, information security, and confidential security management, strengthened risk prevention, improved risk database, implemented risk prevention and control measures, and maintained a good situation of safe production.

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26 27Shandong Nuclear Power Company CORPORATE SOCIAL RESPONSIBILITY REPORT 2017

Quality Assurance In 2017, Unit 1 of Haiyang Nuclear Power Plant successfully completed the hot functional test and pre-service inspection, which was approved by the National Nuclear Safety Administration. It was ready for fuel loading and entered the loading preparation stage in July. Unit 2 completed the pre-service inspection work and was about to enter the cold hydro test phase. With a more careful, patient and open-minded attitude, SDNPC carries out peer benchmarking and self-assessment of system, improves the procedural system, strengthens staff's sense of responsibility and compliance of behaviors, inspects personnel behaviors, conducts skill training and competitions, and optimizes experience feedback system throughout the year to ensure long-term good operation of the quality assurance system.

Quality assurance supervision performance

SDNPC had carried out the training on the AP 1000 system equipment for senior executives for 2 weeks in a row.

The quality assurance inspection and supervision was conducted according to plan, 14 internal and

external supervisions and inspections of construction design and procurement and commissioning were

launched.

Important production activities (handover and pre-start up preparations) were supervised. 23

special supervisions on essential parts of the quality assurance system were implemented to ensure the

high quality of crucial activities.

Regular review of the procedure system was conducted to modify and refine 698 procedures at

all levels.

With a correct understanding of the relationship between safety quality and schedule, and based on practice and high standards, SDNPC assigns specific tasks and goals to each position to ensure the safety and quality and the project progress with efforts of all employees.

Quality Assurance Supervision and Inspection

In 2017, SDNPC established the Health Management Committee, continuously carried out quality improvement activities covering field engineering commissioning and various production fields, further straightened technical regulations, so as to ensure that design change and equipment operation and maintenance requirements were implemented in the operation and maintenance procedures and promote the improvement of the quality assurance system and physical quality.

In the production field, the company put emphasis on the standardization of production technical documents and behavior normalization of personnel to serve the needs of production. In the commissioning field, design and construction quality was fully verified, and defects were eliminated in a timely manner to meet the design requirements and accord with engineering time nodes. In the field of engineering, the handover defects of Unit 2 were greatly reduced through experience feedbacks, and the management of field equipment and system were promoted to meet high-standards requirements.

People are the core elements of the operation of the quality assurance system. SDNPC has been people-or iented, strengthened personnel knowledge and skills training to enhance their ability of duty performance, enhanced the education on sense of responsibility for personnel to improve their quality awareness, and cultivated proper personnel behavior norms to reduce human error.

SDNPC conducted training and management benchmarking, vigorously carr ied out skil ls training for employees and subcontractors, performed self-examination, kept open to inspection and internal and external evaluation, summarized experience and feedbacks of rectification, and improved the system of training courses. Typical cases in various fields were incorporated into teaching materials, and support was provided for post authorization training. The combination of training and production was enhanced, for example, the optimization of simulator scene, to improve the technological level. In order to strengthen the execution of procedures, enhance the "procedural awareness and systematic thinking" of managers, and form a good working atmosphere in which everyone abides by procedures, examinations on knowledge for engineering and production procedures were carried out.

SDNPC has promoted closed-loop management of the quality assurance system by means of effective rectification. According to the professional characteristics, the codes of conduct for different posts have been further developed and refined to clarify the work standards and urge employees to develop good working habits. The quality accountability and assessment system is exercised to eliminate falsification and unlawful operations, so as to form a working atmosphere that no one dares to violate the procedures. The quality of procedures has been constantly improved to ensure that the procedures are applicable and available, moreover, appropriate technical and management barriers are set up to warn violation of the procedures, thus creating a working environment that the procedures cannot be violated. Through continuous nuclear safety culture construction and re-education, the "subjective will" of violating procedures is eliminated, with the working habit of no violations formed.

Enhancing Quality Awareness

Site supervision and inspection

Nuclear cleanup

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28 29Shandong Nuclear Power Company CORPORATE SOCIAL RESPONSIBILITY REPORT 2017

The maintenance support office of the Maintenance Department of the company was honored the title of "Youth Safety Production Demonstration Post of Shandong Province"

The company won the title of "Advanced Unit of Equipment Management in the 6th National Power Industry Session"

In 2017, SDNPC established the Engineering Safety Production Sub-committee under the Safety Production Committee of Haiyang Nuclear Power Project. The Committee meets on a quarterly basis to study, coordinate and address major HSE issues. Since 2017, the Committee has put forward 97 safety action proposals. SDNPC divided the monthly safety meeting into the company's monthly safety meeting and the engineering's monthly safety meeting, so as to strengthen the implementation of safety management and measures

SDNPC further strengthened the responsibility system for production safety, emphasized that the responsibility for safety should be placed on everyone and every position, improved safety management measures, and strengthened safety control at the workplace. In 2017, the company's production safety situation is under control, and the overall situation of production safety is stable.

We straightened and upgraded 14 procedures including the HSE Management Program in compliance with Opinions of the CPC Central Committee and the State Council on Promoting Reform and Development in the Field of Safe Production and the management system of SPIC. Such four procedures as Safety Management of Hazardous Chemicals, Management of Safe Production Violations, Safety Management of Production Contractors, and Management of Fixed Safety Facilities and Safety Tools and Instruments were newly formulated.

According to the annual HSE plan, we carry out special supervision and safety inspection, including comprehensive safety inspection before major festivals. In 2017, a total of 14 special supervision activities were conducted, more than 2,700 potential safety hazards were checked, 205 safety rectification notices were issued against problems found, and continuous supervision and inspection over key events of Unit 1 and Unit 2 (hot functional test for Unit 1 and cold hydro test for Unit 2) were carried out. HSE management system can meet requirements of safety, occupational health, environmental management system and other applicable laws and regulations, can serve the company's development needs, and continuously improve and upgrade the company's overall performance and management capabilities. SDNPC also exchanged and cooperated with the Det Norske Veritas (DNV) on the construction of safety production benchmarks in the production field.

Improving the Safety Management System

Industrial SafetyIn 2017, SDNPC continued to strengthen safety culture awareness, identify safety risks, and build and improve the safety risk control platform based on the dual-prevention mechanism of risk classification-based control and hidden danger check and handling. The company intensified procedure system building, safety culture training, and responsibility system construction, established an external support team, and took control in advance to strive for essential safety.

Industrial Safety

Fire Safety

Radiation Protection

Occupa-tional Health

Health & Di-sease Control

Environmen-tal Protection

Transport Safety

Security

No deaths or serious injuries

No average or more severe accident involving electrical equipment

No average or more severe electrical safety accident

Industrial Safety Accident Rate (WANO)

Contractor Industrial Safety Accident Rate (WANO)

Number of Major Industrial Safety Accidents

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

Description

No incident involving loss of radioactive sources

No security incident (resulting imprisonment of individuals or involving theft of property worth 10,000 yuan)

No collective food poisoning accident (food poisoning of 5 or more people at the same time)

No environmental incident which would incur penalties by the local environmental protection agency

No traffic accident (involving loss of property worth more than 30,000 yuan)

No occupational disease case or acute occupational poisoning accident

No radiation exposure accident that cause individuals to be exposed to doses in excess of the annual limit of 13mSv

No fire accident (involving loss of property worth 100,000 yuan or above)

Performance Targets of the Year

Performance of the Year

Safety Committee

Nuclear Safety Review CommitteeIndependent nuclear safety supervisor - Nuclear Safety Officer

ALARA (As Low As Reasonably Achievable) CommitteeRadiation engineers responsible for supervising activities within the RCA

Environmental Protection ProgramIndependent off-site environmental monitoring stationsLocal environmental watchdog's monitoring stations

On-site safety network built in collaboration with partnersSafety management teamCorporate fire brigade

Controlled areas - protected areas - vital areasSecurity teamAnti-terrorist squadArmed police squad stationed in the plant

Occupational hazard identification and preventionRegular occupational health checks and on-site medical careLogistics CommitteeProfessional institution engaged to provide regular health & disease prevention screening services

Four Independent Safety Management Departments Safety & Quality Assurance Dept. Nuclear Safety & Licensing Dept. Health Physics Dept. Logistics Dept.

Safety Mindset Risk control, Defense in depth, Prudent decision-making, Safety first

Nuc

lear

Saf

ety

Indu

stria

l Saf

ety

&

Fire

Pro

tect

ion

Nuc

lear

Sec

urity

Occ

upat

iona

l Hea

lth&

Dis

ease

Con

trol

Rad

iatio

nPr

otec

tion

Envi

ronm

enta

l Sa

fety

Structure of Safety Management

HSE performance index

in the construction plan and modulation production plan.

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30 31Shandong Nuclear Power Company CORPORATE SOCIAL RESPONSIBILITY REPORT 2017

SDNPC fur ther strengthened the safety awareness and comprehensively improves the safety quality of all the staff. New procedures for the management of safety production violations were released to standardize the rules for violation defining and the handling measures, helping employees to develop good habits of observing regulations and discipline, put t ing an end to breach of regulations and ef fectively preventing personal injury and equipment damage. In 2017, SDNPC carr ied out safety regulat ion and 25 education trainings, and organized 44 tests taken by 1,381 people. More than 500 special training sessions were provided for special operations (such as nuclear cleaning personnel). Education and training were given to 27 on-site violators.

Carrying Out Safety Education Training

It is the key work of the company to strengthen the safety management of contractors in the production stage. Production safety is ensured through the supervision by the company's safety supervision team and the safety management by the production contractors themselves.

SDNPC organized contractors to carry out comprehensive analysis and evaluation of safe production capacity, improve the quality management standards, standardize the construction quality management, and organized suppliers to formulate uniform construction and acceptance standards according to relevant drawings and specifications to promptly correct management deficiencies. In 2017, SDNPC upgraded a number of procedures to increase the requirements for regular review of the qualifications of sub-contractors.

Contractor Safety Management and Training

Carrying out safety month activities

In 2017, SDNPC carried out a series of "safe production month" activities of eight aspects on the theme of "fully implementing the responsibilities of enterprise for safe production" to promote continuous improvement of the safety management level.

Actively creating an atmosphere for safe production month activities through placing publicity boards, broadcasting warning slogans, etc.;

Conducting special lectures and thematic publicity activities of safety production;

Watching warning education videos of safety production accidents, organizing discussions on safety, and carrying out safety production warning education;

Inviting professional consulting companies to carry out knowledge popularization activities themed on "confined space safety" and actively conducting "June 16" safety consultation day activities;

Carrying out safety training in combination with accident case analysis and on-site actual operations, and learn relevant safety production regulations and systems such as the Safety Production Awards and Punishment Regulations newly revised by the SPIC.

Employees were organized to participate in safety knowledge competitions, essays writing and shooting activities on the theme of "national safety month", and thematic publicity on safety production was carried out;

Carrying out special activities on emergency plan and drill;

As to anti-air fall on site, opening hole and edge protection, flood and typhoon control, pre-conditions for hot functional test and check of temporary measures, special inspection on safety production were carried out.

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32 33Shandong Nuclear Power Company CORPORATE SOCIAL RESPONSIBILITY REPORT 2017

Fire Safety

Information Security

SDNPC improved the fire safety management system, optimized the management process, refined the division of responsibilities to prevent and control safety hazards. In 2017, SDNPC revised nine fire management procedures including the fire management program and fire management rules, conducted periodic assessments of fire safety on a monthly basis to quantify safety risk control and address fire management weaknesses in a targeted way.

SDNPC carried out special supervision and evaluation of fire management, regularly monitored fire risks, and continuously conducted special supervision activities including management of fire barriers, construction and operation and fire training, as well as fire safety check before holidays.

SDNPC prepared fire management training courseware for all the staff and carried out fire training (including fire permit training) to promote the employees' fire safety awareness. In 2017, the company carried out 33 batches of fire training, involving more than 1,600 people.

SDNPC has established a sound information management system, which covers the management of application system, information equipment, network system, information security, basic data, information project, etc. The company has set up the network and infrastructure platform, with the network covering the Haiyang Nuclear Power Plant site and related areas and extending to main participating units of the project. The company strengthened the construction of standardized operation and maintenance system, improved the operation and maintenance team, and established a "three-line" IT service organization and service desk, which constantly increased users' satisfaction.

SDNPC has formed an integrated information security protection system and established a technical system that covers network security, system security, application security, data security, and terminal security. In 2017, all staff were organized for in-depth study of the Network Security Law, and the construction of a comprehensive management system of network security was accelerated to achieve internal and external network isolation.SDNPC implemented the information development plan and ensured the network security during major national activities such as the 19th National Congress.

Our network security management department carefully researched the network security policies and technologies, intensified efforts in the network security work, and effectively improved the network security capability and level. At the same time, the "network security publicity week" was held to improve employees' awareness of network security.

Financial Risk Prevention and Control

Upgrading Confidentiality Measures Since 2017, SDNPC has perfected confidentiality rules and regulations, improved confidentiality organizations, and strengthened the fulfillment of confidentiality duties, with substantial results achieved.

In capital management, SDNPC strictly followed the procedures. We cultivated and improved professional ethics of employees in daily work, and paid close attention to employees' ideological status to select suitable personnel for fund management, and implemented post separation and mutual restriction to control fund management risks.

We adopted various measures to ensure fund safety supply:

Led by Shandong Branch of China Development Bank, the Phase I

syndicate of Haiyang Nuclear Power Project, which consisted of

ICBC, ABC, BOC, CCB, Export-Import Bank, provided funds for the

project construction. Led by Shandong Branch of China Development

Bank, the Phase II syndicate of Haiyang Nuclear Power Project,

which consisted of ICBC, ABC, BOC, CCB, PSBC, Export-Import

Bank, provided funds for the phase II construction of the project.

The company actively grasped dynamics of the capital market and

reasonably arranged the structure of long-term and short-term loans

to reduce the financing cost. We strengthened communication and

coordination with policy banks such as China Development Bank and

Import-Export Bank of China to deepen bank-enterprise cooperation

and vigorously expand financing channels. Based on the market

situation, financing cost in SPIC, the province, and Yantai city, we

strived for the lowest interest rate under the same conditions.

The Party Leadership Group

regularly conducted

research on confidentiality

work, held meetings of the

Confidentiality Committee,

carried out authorization of

persons responsible for

secret-level setting, and

improved the management

of secret-related personnel.

The training of persons

responsible for secret-level

setting was organized, the

methods of confidential

education training were

enriched, and a series of

activities of confidential

publicity and education

month were carried out.

The company actively

promoted the upgrading of

confidentiality technology,

and coordinated to improve

security facilities for key

parts.

The company set deputy

director for the

Confidentiality Committee

and full-time posts of

confidentiality management,

and established a WeChat

coordination platform for

confidentiality work.

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34 35Shandong Nuclear Power Company CORPORATE SOCIAL RESPONSIBILITY REPORT 2017

03 Making Contribution through Low-carbon Actions in Shandong

The 13th Five-Year Plan for the Protection of Ecological Environment puts forward that "By 2020, the level of green and low-carbon production and lifestyle should go up, the emissions of major pollutants should be greatly reduced, and environmental risks ought to be effectively controlled". SDNPC upholds the concept of clean, low- carbon and environmental protection in the production and construction process. While providing clean and efficient energy for local economic and social development, it carries out actions such as energy conservation and emission reduction, resource conservation and biodiversity protection, gives full play to the role of nuclear energy and nuclear power enterprises in improving the energy structure, ensuring energy safety and promoting the construction of ecological civilization, thus accelerating the transition to new energy in Shandong province.

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36 37Shandong Nuclear Power Company CORPORATE SOCIAL RESPONSIBILITY REPORT 2017

It can meet more than 35% of Yantai City's annual electricity demand

Equivalent to

35%

million tons

tons

44,000hectares

42,000

6Saving standard coal Reducing carbon

dioxide emission

million tons

15.6Reducing sulfurdioxide emission

tons

51,000

ReducingNOX emission

Plantingbroad-leaved forests

Providing Clean and Efficient Energy The report to the 19th CPC National Congress proposed to promote the energy production and consumption revolution, and build a clean, low-carbon, safe and efficient energy system. Nuclear power is exerting its advantages of high efficiency, safety and zero carbon emission to contribute to the realization of the national energy strategy and the construction of beautiful China by providing the society with clean and efficient energy.

In 2017, Unit 1 of Haiyang Nuclear Power Phase I Project had the conditions for fuel loading and Unit 2 entered the stage of commissioning to production. It is estimated that the annual electricity output of Haiyang Nuclear Power Phase I Project can reach 17.5 billion kWh after putting into operation, which will effectively relieve local power shortage in the peak time, help to reduce carbon emission and protect the clean water and green mountains of Shandong province.

17.5 billion kWh:

Environmental Monitoring

In 2017, 437 samples of various types were collected, 515 analytical statements were developed, and 169

instrument performance inspection reports were completed.

Key performance:

Environmental monitoring is an important link to ensure nuclear safety and the focus of public attention. SDNPC regards safety as the lifeline and has never stopped pursuing higher standards of nuclear safety. At the critical node of entering a new phase of loaded operation, SDNPC continuously improved the system of environmental monitoring and management, strictly managed radioactive materials, and promoted environmental monitoring in accordance with the 2017 Environmental Monitoring Plan for Shandong Haiyang Nuclear Power Plant and the 2017 Work Plan for Environmental Monitoring Quality Assurance to build an environmentally friendly nuclear power plant.

Environmental radiation monitoring facilitySampling of effluents from nuclear power plant

Establishing the Radiation Protection and Control Management System

Building Supervisory Monitoring System

Nuclear Radiation Environmental Monitoring

In order to orderly and efficiently carry out radiation protection, based on Radiation Protection Division, Protection Support Division and Environmental Monitoring Division, SDNPC ensured the implementation of Radiation Protection Management Program and Radiation Protection Optimization (ALARA) Management and other protection rules, improved the procedure systems for radioactive waste management, optimized the principles of radioactive solid waste classification, and formulated specifications such as the review system for radioactive sources entering the site, so as to carry out radiation protection at the system level, shift forward the risk control threshold and eliminate potential safety hazards before they occur.

The on-site radiation supervisory monitoring system can carry out super v isor y mon i to r ing o f the surrounding radiation environment during the operation of nuclear power plant, and issue early warning of the radiation environment in the event of an abnormality. In May 2017, the on-site supervisory monitoring system in the radiation environment of Haiyang Nuclear Power Plant was verified by the expert group of East China Nuclear and Radiation Safety Supervision Station of the Ministry of Environmental Protection, and successfully passed the pre-acceptance and entered the trial operation stage, providing strong support for the smooth loading of Unit 1.

SDNPC has built an environmental m o n i t o r i n g s y s t e m c o v e r i n g meteorological observation system, environmental γ-ray monitoring system, waste l iqu id sampl ing station, environmental laboratory and environmental monitoring network to monitor the meteorology, air, seawater, groundwater and soil around the power plant. In the future, waste from the Nuclear Power Plant will be discharged after passing the test, so as to ensure the surrounding environment of the Nuclear Power Plant meeting environmental protection requirements.

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38 39Shandong Nuclear Power Company CORPORATE SOCIAL RESPONSIBILITY REPORT 2017

In cooperation with relevant authorities including Huaihe Water Conservancy Committee, Water Resources Department of Shandong Province and Haiyang Water Resources Bureau, the company carried out periodical reporting and inspection to regularly disclose relevant monitoring data to the public for social supervision.

The company actively carried out peer assessment and exchange as well as promotion of excellent experience of nuclear safety supervision departments, in order to draw on experience of other units in identifying problems and continuously improve nuclear safety management.

Improving External Supervision

Management of Radioactive Waste

Exchange of Experience

Constructing the Site Radwaste Treatment Facility (SRTF)

Radioactive wastes such as gloves, overalls, chemical waste liquid and the like generated by nuclear power plant are classified, collected, compressed and reduced in volume, measured in radioactive level, solidified and stored in cement.

Building spent fuel pool

Waste materials are stored in water for shielding radiation and cooling, and then transferred to other shielding containers after the radiation is weakened.Nuclear fuel

Nuclear waste of medium and low radioactive level

SDNPC strictly implemented the regulations on the collection, transportation, reception, and temporary storage of radioactive waste, so as to ensure that radioactive waste management is fully performed, and carried out management of radiation control area of Unit 1, SRTF, decontamination and sampling, measurement, analysis and emission of waste water from thermal maintenance workshops to avoid the waste's harm to the environment.

Energy Saving and Consumption Reducing

Carrying out Energy Conservation and Emission Reduction Green operation is the business philosophy of SDNPC. We adhere to the sustainable development of low energy consumption, low emission and low pollution, continuously improve the management mechanisms and systems for energy conservation and emission reduction, enhance the efficiency of resource utilization and reduce pollutant emission.

SDNPC comprehensively strengthened the management of energy conservation and consumption reduction, signed the Responsibility Statement of Administrative Logistics on Energy Saving and Consumption Reduction Objectives with relevant departments and offices, implemented the goals through setting up indicators and decomposing them layer by layer, and conducted regular inspection and assessment to promote water and electricity conservation.

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Walking into the environmental monitoring station to experience green nuclear power plant

On June 5, 2017, it was the 46th World Environment Day. Over 40 teachers and students from Haiyang No.9 middle school entered the environmental monitoring station of Haiyang Nuclear Power Plant. The worker of the station briefed them on the origin of World Environment Day, basic nuclear power knowledge, the knowledge of environmental monitoring

"Seeing these high-tech equipment and technologies today, I really learned the great importance attached to environment by nuclear power plant".

"The professional environmental monitoring system of Haiyang Nuclear Power Plant and its serious and responsible attitude towards residents make us

relieved living around the station".

- Ren Xuteng and Li Aike, students of Haiyang No.9 middle school

and the overall operating status of the station. The visit unveiled the mystery of environmental monitoring station, which deepened the public understanding and trust of nuclear power plants and nuclear energy, and also enhanced their awareness of environmental protection.

Environmental monitoring station

The Site Radwaste Treatment Facility (SRTF)

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40 41Shandong Nuclear Power Company CORPORATE SOCIAL RESPONSIBILITY REPORT 2017

Carbon and Emission Reduction

Advocating Low Carbon LifeSDNPC summarized the experience in energy conservation and consumption reduction and exerted its technical advantages to improve the efficiency of resource utilization and reduce energy consumption by applying high-efficiency and low-energy consumption equipment and facilities, optimizing the operation mode of system equipment, and strengthening the utilization of waste materials, with corresponding specifications formed and a long-term mechanism for efficient use of resources established.

Conservation of Biodiversity The report to the 19th CPC National Congress proposes to optimize the ecological security barrier system, build ecological corridors and biodiversity conservation network, and improve the quality and stability of ecosystem. SDNPC takes ecological environmental protection as an important criterion in the whole process of engineering design, construction, and operation. SDNPC respects nature, conforms to nature, protects nature, and promotes positive impacts on biodiversity by improving the living and reproduction environment of organisms.

The scene of "bird wave" in wetlands around Haiyang Nuclear Power Plant

Safeguarding the homeland of natural creatures, the blue sky, and the clear sea

Since the start of construction, Haiyang Nuclear Power Plant has attached great importance to environmental protection. The surrounding wetland ecologic environment is favorable, and all kinds of rare and lovely natural creatures migrate to and settle in Haiyang. In the periphery Haiyang Nuclear Power Plant, sometimes a scene of "bird wave" is formed in the sky with thousands of aquatic birds gathering to turn over in different formations.

The "bird wave" mainly consists of Larus argentatus, Charadrius alexandrines, and mallard. In the wetlands around Haiyang Nuclear Power Plant, there is not only the globally endangered Larus saundersi, which is listed in the Red Book of Endangered Species, but also Paradoxornis heudei, Pycnonotus sinensis, Phoenicurus auroreus which are known as "treasure-level birds". Living in harmony with nuclear power, Haiyang Nuclear Power Project is safeguarding the blue sky with actions!

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SDNPC placed great emphasis on energy conservation and environmental protection publicity and education. Through special publicity of "reducing costs and increasing efficiency" and activities on "building civilized SDNPC, keeping conservation in mind" in forms of soliciting energy-saving initiatives and manual classroom of turning waste into wealth, the awareness of energy conservation and environmental protection was integrated into the mind of employees who practiced green life with their actions.

Carrying out Publicity of Energy Conservation

Manual classroom of turning waste into wealth

The company continuously carried out waste gas, waste water, solid waste and noise management, supervised the signing of waste treatment and disposal contracts by participating enterprises and contractors, and promoted networking and upgrading of sewage treatment stations. In 2017, SDNPC has set up 4 sewage treatment stations to fully meet the sewage treatment needs.

Waste treatment

Implementates office automation OA system to save paper.

Paperless office

Starting with pollution sources, SDNPC dismantled small coal-fired heating boilers and replaced them with municipal central heating and electric furnaces to reduce air pollution. In 2017, a total of 6 coal-fired heating boilers smaller than 10 tons were demolished, reducing emissions of 6,354 tons of carbon dioxide annually.

Replacing coal with electric energyDaurian redstart

Light-vented bulbul

Hoopoe

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04

山东核电有限公司SHANDONG NUCLEAR POWER COMPANY LTD.

Regional Co-development with High Quality

With the world's first batch of units built with the third-generation nuclear power technology AP1000, Haiyang Nuclear Power Project is the first nuclear power project of North China power grid and the largest single investment project in Shandong province since the founding of New China. It is a milestone breakthrough in the nuclear power project of Shandong province. While developing and expanding, SDNPC sticks to co-development with the local area. As a state-owned enterprise unit in Shandong province, SDNPC has been rooted in Shandong for many years, constantly promotes the development of local industries, conducts targeted poverty alleviation, provides cultural and educational support, helps disadvantaged groups, carries out volunteer service activities, and builds a harmonious relationship with the region, which shows the accountability and demeanor of an central enterprise.

The company has won the title of "Excellent Philanthropic Enterprise of Haiyang City" for two consecutive years.

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44 45Shandong Nuclear Power Company CORPORATE SOCIAL RESPONSIBILITY REPORT 2017

Since the signing of the strategic cooperation framework agreement on development of energy industry between SPIC and Yantai City, SDNPC has actively cooperated and aligned with Yantai Municipal Government around the development of green clean energy projects, and promoted the project progress. At present, Yantai City, as the fifth core city to develop nuclear power industry after Beijing, Chengdu, Shanghai, and Shenzhen, has initially established a nuclear power industry system integrating R&D, manufacturing and promotion.

In the future, SDNPC will further increase investment in nuclear power industry, scientific research, energy conservation, and publicity, providing more power and vitality for building the fifth pole of China's nuclear power.

Developing Green Clean Energy Projects

In 2012, Haiyang Nuclear Power Equipment Manufacturing Industrial Zone was born with Haiyang Nuclear Power Plant. In the past five years, the park has initially formed a full industry chain ranging from R&D and design of nuclear power, manufacture, installation of nuclear power equipment, modules, and reactor components to post-operation services. SDNPC actively participates in the construction and development of the industrial park, extends the reach of industrial chains, and attracts upstream and downstream enterprises of the nuclear power industry to enter Haiyang City, helping to build a nuclear power economic growth point. In 2017, projects including State Nuclear Power Engineering Company Limited (SNPEC), Haiyang Base of Operation of State Nuclear Power Operation, Offshore Wind Power Operation R&D Center, and Bofine Power Shandong Haiyang Nuclear Power Technology R&D Base were successfully signed.

Yantai Nuclear Power R&D Center is a national-level nuclear power R&D center jointly initiated by Yantai Municipal Government, SPIC and others. It is an important part of the "One Center, Three Parks" industrial layout of Yantai City, and it has built a new platform for open sharing for innovation and development of the whole nuclear industry chain. SDNPC has given full play to its leading role in the nuclear power industry, and has conducted close communication and coordination with Yantai Municipal Government. It has joined hands with industry-leading enterprises and research institutions to accelerate the pace of Shandong becoming the northern base of the national nuclear power industry, help build hundreds of billions-level nuclear power equipment industrial clusters in Yantai City, Shandong province, and create a "new city of nuclear power industry in China".

Driving the Layout of Local Industries

Promoting Local Poverty Alleviation SDNPC has implemented the strategic plan of the Party Central Committee and the State Council on winning the battle against poverty, carefully studied General Secretary Xi Jinping's important strategic thinking on poverty alleviation and development, given full play to its advantages in management, technology and financial capacity, dispatched two "first secretaries" to poor villages and helped areas including Heze, Shandong province to get rid of poverty.

In response to the call of Shandong province to "send the first secretary to poor villages to carry out Party building and promote poverty alleviation", the company selected cadres as the "first secretary" for poverty alleviation in Gaotang Village and Yangmiao Village, Jiunuji Town, Heze City, Shandong province.

The "First Secretary" Helping with Poverty Alleviation

The "first secretary" established rules and regulations in local areas including "the system of holding Party branch general meetings, meetings of Party branch committees, Party group meetings, and Party lectures", "carrying out Party members' democratic life meeting and democratic appraisal", "the procedure of proposal put forward by the village Party branch, discussed by the ‘two committees’ of the village, deliberated at the Party members' meeting, with resolution made at the villager representatives' or the villagers' meeting, and keeping the openness of resolution and implementing results", "members of village Party branch committee and villagers' committee taking turns on duty" and brought donation of SDNPC to the villages. Through the coordination of village and social forces to improve infrastructure conditions such as village

New cement road in Yangmiao Village

The first secretary carried out Party members conversazione in poor villages The first secretary carried out Party building with poor villages

44 Shandong Nuclear Power Company

Promoting Local Development Based on and integrated with the local area, SDNPC actively accords with local development plan and layout, exerts its technology, fund and industrial chain advantages in clean energy projects, leads the development of local clean energy industry, injects "green" power into local economic and social development, and pushes forward the transition to new energy in Shandong.

Photovoltaic power illuminates the way for village poverty alleviation

In July 2017, the photovoltaic poverty alleviation project in Gaotang Village was officially started, which is situated at an abandoned homestead and the roof of poverty alleviation workshop in the village. In order to ensure that this key project of poverty alleviation could generate electricity as scheduled, Zhang Zhe and Jia Ruipeng, the "first secretaries" sent by SDNPC, strictly controlled the quality of photovoltaic modules, the quality of supports, the connection to the grid, etc. to ensure that the project was completed with good quality. In September, the 168kW photovoltaic poverty alleviation project of the village passed the acceptance and was formally connected to the grid for power generation.

It is estimated that the annual power generation of the project is about 200,000 kWh, with an annual income of about 180,000 yuan. The earnings of the project are all used for poverty alleviation and infrastructure construction in the village, which has created good economic, social, and environmental benefits for the local area.

"We must always maintain the spirit of opportunities waiting for no one and

seizing the time to handle more matters with effectiveness for the masses".

- Zhang Zhe, the resident "first secretary"

Haiyang Nuclear Power Equipment Manufacturing Industrial Zone

roads and promote the development of local industries, the "first secretary" has played an important role in building a strong primary-level Party organization, promoting poor villages and poverty-stricken households to get rid of poverty.

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Carrying out Voluntary ServiceSDNPC encourages employees to help needy groups with voluntary actions to promote social harmonious development. Volunteers actively spread love and care in poor villages, communities, schools, continuously transmitting positive energy from SDNPC.

Standardizing the Management of Volunteers

Voluntary Service Activities

Over the past ten years, SDNPC's volunteers explained the corporate culture of "led by nuclear and joined with heart" with their own actions, creating a volunteer service brand with SDNPC characteristics. In 2017, in view of the increasing number of volunteers, variety of voluntary activities and frequency of services, SDNPC strengthened the standardized management of volunteers and the building of volunteer teams. It combed through the volunteer

team, promoted the registration of volunteers, and issued the Measures of SDNPC for Youth Volunteer Service Management, which has clarified the company's voluntary service organization, division of responsibilities, rights, and obligations of volunteers and effectively promoted the institutionalization, standardization, and normalization of volunteer service.

Supporting Cultural and Educational Development Culture and education have a far-reaching and lasting impact on the development of society and are important forces for regional development. Based on the platform and resources advantages, we have carried out a variety of activities on science popularization and

Based on technological advantages and platforms including the Nuclear Science and Technology Museum SDNPC regularly conducts activities such as the open-to-public day, the nuclear power lecture, the nuclear power science on square, and works with primary and secondary schools around to build the nuclear power science base and comprehensive classrooms and so forth to enhance the youth's attention and understanding of China's nuclear power industry, and improve their scientific literacy and spirit of exploration.

Improving scientific literacy

Promoting Cultural Exchange

Small "Nuclear English Corner" for cultural tour

In March 2017, SDNPC invited two foreign experts Michael and April to Haiyang No.1 middle school to carry out nuclear power English corner activities, and more than 150 teachers and students of the school participated. The activity gave teachers and students a spectacular cultural exchange tour.

During the activity, foreign experts vividly introduced nuclear power to the students, which made them understand the advanced technology AP1000 and enhanced their pride in nuclear power of their hometown. In the free exchange between experts and students, they discussed on English learning, customs and habits in different countries and how to become an excellent nuclear power engineer. The classroom atmosphere was extremely lively with sustained applause and laughter.

"Azalea – Love of SDNPC" student assistance project: SDNPC helped poor students by means of the employee - student pairing. In 2017, the "Azalea – Love of SDNPC" project entered more than 20 schools and aided 95 poor students, with a cumulative donation of 74,100 yuan. In the past eight years, the company has donated 559,519 yuan, donated nearly 9,000 books and aided 763 poor students.

Visiting families of poor college students: Volunteers visited 12 families of needy college students in 6 villages including Zhaiqian, Zhaihou and Daxinjia in the nuclear power industrial park and gave them care and encouragement.

Caring for the elderly: The volunteer service of caring for the elderly is one of the brand voluntary service projects that SDNPC has conducted for more than ten years. In October 2017, SDNPC volunteers walked into 7 villages including Dongjiazhuang and Lengjiazhuang in the nuclear power industrial park to send gifts and blessings to local poor and old-age people and senior Party members. In addition, the SDNPC's volunteer team carried out activities such as the nuclear science popularization tour for retired cadres in Haiyang University for the Elderly and performance for the elderly in gerocomium on a regular basis.

Caring for children in need: Volunteers of SDNPC went to Yantai SOS children's village to visit children, brought them books, nutrition products and other materials, and provided them with homework guidance while understanding their life, study and growth.

Carrying out volunteer service activities of respecting and caring for the elderly

Volunteers visit No.12 family of SOS children's village

cultural exchange to promote the development of culture and education and better meet the growing needs of the people for a better life, thus contributing to local sustainable progress.

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05 Multi-Party Cooperation for Win-Win Results

SDNPC carries out exchanges and cooperation with peers, partners, government, suppliers, scientific research institutes and other stakeholders to deepen scientific and technological achievements and broaden development space. With professional advantages, we promote healthy and sustainable development of the industry, build a sustainable and responsible value chain, and achieve common development with stakeholders.

SDNPC's NI Testing Division of Commissioning & Start-up Management Department has won the two honorary titles of "Innovative Teams of Shandong Province" and "Workers Pioneer of Shandong Province".

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Communication and SharingWith the platform of CNEA, SDNPC actively promoted strategic cooperation and development, shared industry experience with peer companies and partners, and sought common progress of the industry to achieve a harmonious and win-win situation.

Promoting the Industry Technology Development

The Temperature Regulation Scheme for Pressure Vessel Area Concrete of Nuclear Power Plant won the third prize of the 2017 (9th) National Power Worker Technical Achievement Award

Undertaking the risk control for commissioning of AP1000 nuclear power project in the 2017 annual science and technology program of SPIC

The Measures for Solving Abnormal Operating Sound and Vibration Problems of Main Transformer in Haiyang Nuclear Power Plant Phase I Project won the third prize of 2017 Outstanding Worker Technology Innovation Achievement Award of SPIC

SDNPC further promoted technology innovation, overcame technical problems in the industry development, enhanced technological exchanges and cooperation, shared information, and vigorously promoted sci-tech development and progress of the nuclear energy industry

In 2017, SDNPC straightened the technology management system, in accordance with requirements of the State Nuclear Power Technology Corporation's technology management procedures, upgraded the Science and Technology Work Management, the Intellectual Property Management, the Management of External Publishing of Technical Papers and related technical management procedures of the technology committee. Based on the company's actual situation, adaptive optimization was carried out, with 5 sci-tech projects concluded and accepted.

By relying on the industrial platforms such as Chinese Nuclear Society, China Nuclear Energy Industry Association and the Nuclear Electric Power Generation Branch of Chinese Society for Electrical Engineering, SDNPC actively communicates with other nuclear-related organizations of China. SDNPC has invited WANO to make peer evaluation before the charging of the No.1 and No.2 units and organized a series of TSM activities in the fields of operation, technology and maintenance. It keeps in touch with advanced nuclear organizations in the world, and has attended the leadership trainings, power station manager conferences and professional technical forums held by international nuclear industry organizations such as WANO and IAEA. SDNPC has set up an experience feedback work group to actively collect and evaluate relevant experience and feedbacks from domestic and overseas peers and take actions accordingly.

In 2017, SDNPC accepted the peer evaluation on public communication of China Nuclear Energy Association as the first under-construction nuclear power plant in China.

Domestic and International Peer Exchanges

Women in Nuclear Global Annual Conference

In August 2017, Women in Nuclear Global Conference co-sponsored by WiN Global and Chinese Nuclear Society and organized by SPIC and SNPTC was convened for the first time in mainland China. Nine women representatives from SDNPC were invited to the meeting, who were from different fields such as public communication, design, technology, operation, maintenance, nuclear emergency and business affairs. Among them, senior operator Wang Ping made a speech at the conference in English, while senior operator Zheng Xuexia won the Best Poster Award of the Conference.

Group photo of nine SDNPC representatives

Communicating with experts from WANO and other nuclear power organization

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The nuclear power's demeanor shew at the skills competition

In December 2017, the first Nuclear Power Plant Pump Maintenance Skills Competition sponsored by China Nuclear Energy Association was held in Shanghai. SDNPC employees Hu Biao, Zhang Tianming, and Chen Zimeng represented SNPTC to compete with 18 players from China National Nuclear Corporation and China Guangdong Nuclear Power Group. After the theoretical examination, practical contests and the reappraisal of pump rack after maintenance, the team of SDNPC won the Best Organization Prize and the Individual Third Prize with excellent skills. In the competition, the players actively exchanged technical experience and made progress together.

The winning employees of the skills competition

Training Seminar in Yantai for global elites in the nuclear industry

From July 3 to 6, 2017, WNU Tsinghua Week - Yantai Training Seminar organized by SDNPC was held at SPIC Yantai nuclear power training base.

During the meeting, SDNPC made a special repor t on the characteristics of AP1000 technology and the project construction and fully exchanged views on the progress and experience feedback of the AP1000 project concerned by all parties. In addition, participants were invited to visit Shandong Nuclear Science and Technology Museum and the site of Haiyang Nuclear Power Project. This seminar provided an international and multi-dimension communication platform for domestic and foreign nuclear energy peers, and demonstrated the achievements of the AP1000 project, which received high praise from the sponsor and participants.

Attendees visit the nuclear power plant

Promoting Supplier Management

SDNPC attached great importance to establishing extensive strategic cooperation all iances with local governments, research institutes and universities to realize advantageous complementarities and deepen the effective transformation of scientific and technological achievements.

SDNPC organized to participate in various scientific and technological achievements awards of China Nuclear Energy Association, China Electricity Council, Shandong Province Electric Power Enterprise Association, Shandong Nuclear Society and Yantai Federation of Trade Unions, with a total of more than 170 papers reviewed and monthly report on science and technology submitted. We continuously optimized the functional construction of the company's technical committee, adjusted its functional orientation according to the progress of the project, and actively promoted the adding of members to the committee.

SDNPC carried out various tasks of Shandong Nuclear Society in a deep-going way, completed the audit by the Society and the annual review by Department of Civil Affairs of Shandong Province, and published the technical journal Shandong Nuclear Science and Technology for Shandong Nuclear Society. It also organized the fourth session of the First Council Conference of Shandong Nuclear Society and the general meeting, built the website of Shandong Nuclear Society, and established external contacts with Chinese Nuclear Society, Shandong Association for Science & Technology, and Department of Civil Affairs of Shandong Province, and other routine management activities.

SDNPC has continuously strengthened supplier management, actively spread the concept of social responsibility, and endeavored to establish long-term cooperative relationships with stakeholders in the industry chain to create a healthy and sustainable development industrial chain with efficient synergy and common development, and strive for a situation of mutual trust and mutual benefit and win-win results.

SDNPC upgraded the contractor's management procedure system, established the project management and performance tracking and assessment methods, and encouraged the contractor to actively adapt to the company's work standards and requirements through systematic operation and closed-loop management. In 2017, SDNPC established the monthly management evaluation on project manager in the project management unit and the EPC contractor unit.

Carrying out Industry-university-research Cooperation

SDNPC strengthened the management of subcontractors, organized assessment on potential suppliers (in business affairs, technology, quality assurance, and safety) for non-production, engineering items and service contracts, published qualification evaluation reports, and organized the review of quality assurance programs of sub-suppliers (including nuclear equipment sub-supplier). In addition, information on subcontractor's quality trends was collected to carry out quality trend analysis and issue quarterly reports in combination with supervision and daily quality information.

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06 Building a Big Happy Family

SDNPC is in a critical period from commissioning to loaded operation. At the new starting point, we take talents as the core competitiveness of the company and regard the cultivation of talents as an important cornerstone for the company's sustainable development. SDNPC will continue to adhere to the "striver-oriented" talent philosophy, respect and protect the legitimate rights and interests of employees, and provide them with good development space and a safe and healthy working and living environment, so as to facilitate the common growth of employees and the company and build a happy family.

SDNPC labor union won "the Special Award for 2017 Best Trade Union of National Power Generation Enterprises" and "Top 50 Online Voted National Power Generation Enterprises with the Best Trade Union in 2017".

SDNPC was awarded the title of "Model Enterprise for Corporate Culture Construction in 2017".

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Ph.D. 0.14% Master 20.70%

Bachelor 77.41% Junior college and below1.75%

Male 82.59% Female 17.41%Aged 21-30 46.78% Aged 31-40 33.78%

Aged 41-50 17.83% Aged 51 and above

Educational structure of employees

Age structure of employees

Gender structure of employees

1.61%

Protecting Rights and Interests of Employees SDNPC strictly abides by laws and regulations such as the Labor Law and the Labor Contract Law, continuously improves human resources management procedures, adheres to equal and standardized employment, prohibits the employment of child labor and forced labor, and protects the legitimate rights and interests of employees. SDNPC attaches importance to the company's democratic management, innovates the democratic management mechanism, and fully protects employees' right to know, participate, express and supervise in corporate management.

Profile of employees

In 2017, SDNPC organized 206 training sessions on qualification certification, and the employees obtained 1,152

occupational qualifications in total.

Key performance:

Staff Training and Career DevelopmentSDNPC pays great attention to the growth of young employees, provides them with all-round and multi-level training, broadens their career development path, creates an atmosphere for talent growth, and builds favorable conditions and platforms for their development.

Expanding the Occupational Development Channel for Employees

Cultivation of Young Talents

Carrying out questionnaire survey of employees'

ideological dynamics. Based on the results,

symposiums were held to require young

employees to develop career plans.

Helping employees make career plans

Young talent growth forum, "Learning Lei Feng's

work spirit" and "May 4th" theme day activities

were carried out in-depth to inspire young

employees to keep striving forward with the

deeds of outstanding young people.

Inspiring employees with outstanding deeds

The Youth Civilization Title, Youth Post Expert

and Youth Safe Production Demonstration Post

and Youth Technical Competition were

organized, and 22 youth commandos have been

formed to encourage young employees to make

contributions in the frontline.

Cultivation of young employees in posts

Activities including quality training and the

mentor and the young reading job skills books

were carried out regularly to improve the overall

quality of the young talent pool.

Improving the overall quality of young employees

Cultivation of young talents

The orientation of selecting and training young cadres from the frontline was strengthened. The election of leading cadres and the selection from production posts were carried out, further broadening the channels for training and using cadres. SDNPC continued to establish the youth talent pool, selected young talents who play a vanguard and exemplary role in the project construction, and improved the overall quality of the youth talent pool through career planning guidance, quality development training, themed activities on the communist youth league practice day, etc., thereby fully exerting the advantages of young talents.

professional title and issuing the management procedures of Professional Technical Qualification Appraisal, the company has improved the professional title evaluation and professional qualification management from the organizational and institutional levels, which paves a fair and smooth way for employees' career development.

Based on the actual situation and aligning with outstanding enterprises in the industry, SDNPC has formulated management measures for technical posts, optimized and adjusted the setting of operational post sequences, and further standardized the career development channels for professional and technical personnel to promote the development of professional talents. In addition, by adjusting the company's evaluation committee for intermediate

Building workers' forum: The internal worker forum has been built into a platform for listening to employees' voice, with special personnel assigned to track problems put forward by employees and to respond to their demands promptly while drawing inferences, so as to continue to raise employees' satisfaction and sense of belonging.

Promoting democratic channels: SDNPC's labor union has proactively built platforms to promote democratic channels in all departments and expanded appropriate suggestion channels from departments to the company level, to respond to employees' suggestions and opinions in a timely and objective manner.

Multi-form democratic management

Implementing the Workers’ Congress System: SDNPC strengthened systematic and normative construction of trade union work, and upgraded the management procedure of the Workers’ Congress Work Guide in 2017 to further improve the democratic management

of enterprise. SDNPC gave full play to the Workers' Congress role in democratic management and consultation, convened the 5th Workers' Congress and the 6th Workers' Congress of the Second Session and collected a total of 20 proposals. SDNPC carried out closed-loop management of employee proposals and tracked the implementation of proposals.

SDNPC held the 5th Workers' Congress of the Second Session

The 10th Forum on Youth Growth and Success

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Employee Training

"Responsibility, undertaking, and endeavor" , the 10th Forum on Youth Growth and Success

On May 26, 2017, SDNPC's 10th Youth Growth and Success Forum kicked off with the theme video of "youth’s responsibility, undertaking and endeavor". The forum invited six youth representatives to express their understanding of "responsibility, undertaking, and endeavor" through story telling.

Wu Fang, Secretary of Party Leadership Group and Chairman of SDNPC, encouraged young employees to take up important tasks, successfully accomplish the mission, create more brilliant chapters in pursuing ideals and achieving success in the youth time, and make greater contributions to the development of the company. The forum won the resonance of young employees on site, stimulated the positive energy of enterprise development, and created a good atmosphere for young people to grow and succeed.

In 2017, 469 trainings were conducted with 105,809 man-hours in total of training.

Key performance:

Positionauthorization training

Formulating the company's

post authorization training plan,

and carrying out the post authorization

training

according to the plan and

actual work needs.

RP authorization training

Optimizing RP authorization training courses, increasing practical training

on sanitary entrances and exits, shooting videos on radiation protection codes of

conduct for employees to learn, and optimizing and perfecting radiation protection teaching materials and question banks to improve

the training effect.

Emergency response training

Carrying out nuclear emergency

response special training such as

emergency action level training and

operational intervention training,

as well as training on special

emergency plan and on-site disposal

plan.

SDNPC has innovatively established the job competency model for departments and developed model templates based on the professional quality requirements of different positions in different departments, thereby laying a good foundation for the improvement of employees' working ability. According to the job requirements and the employees' career development plan, the company conducted targeted training and stimulated the talents' development potential to provide strong talent and intellectual support for the company's development. In 2017, 123 licensed operators received training, each person with 92 accumulative hours, which added up to 11,316 man-hours of training and effectively improved the operational ability and performance level of operators.

Caring for Occupational HealthSDNPC strictly abided by the Law on Prevention and Control of Occupational Diseases and other relevant laws and regulations, established a sound occupational health management system, and regularly carried out occupational health work to provide a safe working environment for employees. In 2017, the company provided occupational health examinations for 1,473 people.

Nuclear-related occupational health: Special physical examination was conducted for employees exposed to radioactive operations and regular psychological evaluation of operators was carried out to ensure the physical and mental health of nuclear employees. In 2017, 1,001 radiation workers were organized to perform job adaptability evaluation, and special examination and psychological assessment were carried out for 44 operators.

Routine occupational health: In addition to self-check of electromagnetic, noise and other factors that may harm employees' health, external organizations also carried out regular tests with targeted protective measures adopted. Through holding the "Cup of Safety & Health" first-aid skills competition, the company improved employees' first aid capabilities and self-protection awareness. In 2017, the company organized routine health checks for 472 people.

SDNPC has put into place a comprehensive radiation protection system. It has strengthened the management of radiation control areas, jobs with radiation risk and radiographic inspection, radioactive sources and materials, individual and collective dose limits, and behavior of workers who are exposed to radiation. The company has also implemented strict regulations on activities with occupational radiation risk such as operation in radiological areas, use of sources of radiation, and radiographic inspection.

SDNPS strengthens the behavioral supervision of workers who areexposed to radiation. Workers are trained to wear protection equipment and use radiation detectors and monitors correctly. The company also urges employees to develop good work habits. Personal dose of workers of the company is far lower than the dose limit set by the national regulation.

Activities such as procurement, possession, transportation, use, storage and disposal of radioactive sources in the plant are all well under control. No incident involving theft or loss of radioactive sources, and no accidental exposures of individuals to radiation was reported during the year.

Radiation protection

Radiation protection

59CORPORATE SOCIAL RESPONSIBILITY REPORT 2017

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60 61Shandong Nuclear Power Company CORPORATE SOCIAL RESPONSIBILITY REPORT 2017

Cordially Caring for the Employees SDNPC has attached great importance to the humanistic care for employees, showing solicitude for each employee, attending to the needs of special employee groups, and solving problems for employees in a timely manner.

SDNPC has set up the management committee of serious illness relief fund and formulated the Management of Serious Illness Relief Fund for rescue and condolence of employees suffering from critical diseases. In 2017, a total of 39 advanced, difficult, injured, and sick employees were visited, with more than 70,000 yuan consolation fund offered. Various holiday condolences were carried out in addition to "delivering coolness in summer", with a consolation amount of over 240,000 yuan.

SDNPC kept carrying out "family open day" activities. Families of employees were invited to the nuclear power plant, which not only broadened the vision of their children, but also enhanced the understanding between the company and employee families. In the summer vacation of 2017, the 10th family open day on the theme of "enjoying the happy holiday, creating a common future" was held at Shandong Nuclear Science and Technology Museum, which was full of laughter and won the praise from employee families.

Visiting Employees"Nuclear union, bringing services home" facilitating services: Nearly 20 units were invited to provide convenience services to employees in handling affairs and mastering information, so that they can enjoy all-round life experience without leaving home.

The youth fellowship of "Meeting at SDNPC" was launched: Platforms on marriage and friendship were built for young people in the company to improve the happiness index.

Caring Actions for Employees

Caring for Employees' Families

The 10th family open day themed on "enjoying the happy holiday, creating a common future"

SDNPC trade union won "the Special Award for 2017 Best Trade Union of National Power Generation Enterprises" and "Top 50 Online Voted National Power Generation Enterprises with the Best Trade Union in 2017", as well as the honorary title of "Model Workers’ Home" awarded by Shandong Provincial Work Committee for directly controlled organizations.

Key performance:

Creating a National Civilized Unit

11 key tasks for creating the national civilized unit

SDNPC actively participated in the development of spiritual civilization. In the process of creating a national civilized unit, it continuously improved the overall civilization level of the company and accumulated strength to create greater value for the society. Since the start-up meeting in late 2016, SDNPC has set up objectives for creating a national civilized unit and made specific plans from aspects of main tasks, division of labor, implementation steps, and supporting measures, on the basis of the Notice on Establishing the Leading Group for Building a National Civilized Unit, and the Implementation Plan of SDNPC for Creating a National Civilized Unit. In 2017, surrounding the National Civilized Unit Evaluation System (Trial) and based on the actual situation of the enterprise, SDNPC carried out 11 key tasks.

Rich and various cultural and sports activities

The 2017 staff celebration Party of "ten years of development for today's glory"

Enriching Cultural and Sports Activities In order to enrich employees' spare time and provide them with a platform for self-presentation, SDNPC launched a variety of popular cultural and sports activities, such as the Spring Festival gala, employee singers' competition, table tennis match, etc. While enhancing the cohesion and happiness of employees, these activities also made the "harmony culture" more deeply rooted.

Strengthening the building of leadership group

Conducting the "Party building" in a deep-going way

Strengthening ideological and moral construction

Strengthening the education of ideals and beliefs

Striving for first-class performance

Enriching employees' cultural life

Strengthening internal management of the company

Carrying out "learning from Lei Feng" voluntary service activities

Continuously deepening the style construction

Strengthening the public communication

Carrying out special publicity

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62 63Shandong Nuclear Power Company CORPORATE SOCIAL RESPONSIBILITY REPORT 2017

07SDNPC pursues harmonious coexistence, communicates with stakeholders in an open, transparent and honest manner, innovates ways, expands participation channels, cooperates with all units of the project for win-win results, establishes harmonious symbiosis with localities, shares nuclear information with neighboring residents, builds a good public image and responsible brand, promotes the "harmony culture" to all links of the project, and creates a harmonious development environment of YIMBY (Yes-In-My-Back-Yard).

In 2017, the SDNPC action guide was formulated to provide guidance for the implementation of "harmony culture" in SDNPC to converge the forces, and the company was honored as the "Corporate Culture Demonstration Unit of SPIC" and the "Exemplary Enterprise of China in Corporate Culture Construction".

Shandong Nuclear Science and Technology Museum won the title of "National Nuclear Science Popularization Education Base".

Public Spokesperson for SDNPC Brand

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64 65Shandong Nuclear Power Company CORPORATE SOCIAL RESPONSIBILITY REPORT 2017

Public Spokesperson for Nuclear Power PlantThrough organizing the annual "open-to-public day", "nuclear power lecture", bringing nuclear power science to the campus, entering communities, inviting villagers for on-site experience, etc., SDNPC demonstrated and promoted nuclear power, propelled the public to proactively join the team of nuclear power science popularization, deepened the concept of "making the public speak for the company". Besides, from the perspective of stakeholders, the company publicized nuclear power knowledge in a more acceptable way to create a good corporate brand image.

In 2017, more than 30 open-to-public days were held which received 10,000 people.

In the form of "open-to-public day", media reporters, environmentalists, surrounding students, retired cadres, the government and resident representatives were invited to the site of Haiyang Nuclear Power Project to experience the daily work of the plant, inspect nuclear power projects on the spot, and see the charm of nuclear power. The activities were carried out in various ways such as theme forums, social responsibility reports, public communication MV, staff photo exhibitions, and experience tour of the nuclear power plant, which eliminated confusion and worries of different groups about nuclear power and improved the public acceptance of nuclear power project.

Open-to-public Day

The public read the nuclear science popularization knowledge readings compiled by SDNPC

The child carefully listens to the explanation on fuel assemblies

Visitors take photos of nuclear power station with mobile phones

University students produced propaganda film for the nuclear power plant

Wang Lujie, a student representative from Haiyang and studying at Shanghai International Studies University, who visited the nuclear power plant many times, participated in the compilation of popular science readings on nuclear power, had summer social practice at the plant and participated in the open-to-public day activities, introduced his cognitive

process of nuclear power on the open-to-public day, from knowing nothing of nuclear power to supporting the development of nuclear power, becoming familiar with nuclear power knowledge, and taking nuclear power workers as an example. Moreover, he made a nuclear power plant publicity film in German, which won a prize in the college students' competition.

It is one of the key measures to create the YIMBY effect by including the public participation mechanism in the community work plan. At the beginning of the project planning, SDNPC particularly guaranteed the public participation, and extensively solicited suggestions from stakeholders through regular public seminars to enhance the effectiveness and openness of public participation. The company has strived for wider consensus and more understanding, created a harmonious external environment, and effectively promoted the smooth development of community work and the project.

In 2017, SDNPC and the publicity department of Haiyang municipal Party committee jointly held a public representative symposium, inviting more than 30 people from public sectors including municipal authorities, nearby villages, schools and enterprises. At the meeting, the public's suggestions and opinions on the work of the nuclear power station were heard, questions raised by stakeholders were answered, and valuable suggestions of the public symposium were included in the 2018 public communication work plan for implementation.

In response to the public suggestions, SDNPC made responses through a series of activities. In response to the proposal of the Education Bureau to include nuclear science popularization in the courses for primary and secondary school students in Haiyang City, SDNPC has set up a comprehensive practical course. The Party secretary of the village where the nuclear power plant was originally located said that villagers had deepen feelings for the plant and wished them to come back frequently, so Haiyang Nuclear Power Plant organized a visit to the villagers. Haiyang Nuclear Power Plant also organized industry exchange activities to respond to the demands of surrounding enterprises for strengthening communication and learning advanced management methods.

Public Review of Community Work Plan

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66 67Shandong Nuclear Power Company CORPORATE SOCIAL RESPONSIBILITY REPORT 2017

Shandong Nuclear Science and Technology Museum is the first 720° online nuclear power museum in China in the "internet+" mode, and is also a national nuclear science education base for the public, especially for teenagers. It has become an important window for the public to understand nuclear power rationally and have access to the publicity and popularization of nuclear power.

The museum has broken the limitation of time and space, enabling the public to enjoy one-stop nuclear power science popularization self-service in an all-round way through the internet, experience many interactive games and exhibitions such as roaming nuclear power plant, building a nuclear power plant, and operating a nuclear power plant, touch the AP1000 model, watch the live demonstration integrating sound, light and electricity, and experience the charm of the little overlord game console of the nuclear power version, which turns boring learning of nuclear power knowledge into a vivid exploration tour and expands the social influence of nuclear power plants.

Nuclear Science Popularization Classroom

Nuclear Science and Technology Museum

As a brand activity of the public communication, the social practice sites in Haiyang primary and secondary schools have set up nuclear science popularization classrooms, which is an important carrier for SDNPC to promote nuclear power science knowledge.

SDNPC invited students and teachers to participate in the compilation of the nuclear power science popularization brochure to make the abstruse knowledge popularized and easy to understand. In addition to volunteers and engineers, a group of local primary and secondary school students were also trained to serve as explainers of nuclear power knowledge, thus mobilizing children's enthusiasm for learning, drawing closer the public and promoting the transformation of public communication activities from "the enterprise to the public" to "the public to the public".

Training of nuclear science popularization volunteers

On June 13, 2017, SDNPC publicists went to the Yashacheng Junior High School in Haiyang City to train 10 middle school students who signed up as volunteers for nuclear science popularization. The publicists gave an easy-to-understand nuclear power lecture by explaining complex knowledge with vivid examples and in combination with daily-life objects, deepened students' understanding of science knowledge display boards, nuclear power unit models and nuclear power knowledge game machines, and helped them better play the "role" of small interpreters and lay a foundation for their introduction to visiting students in the future.

SDNPC in the Eyes of Media Focusing on major engineering milestones and closely integrating with the frontline, SDNPC has given full play to the role of new media to conduct in-depth report, promoted the spirit of strivers, presented the nuclear power image in the form of stories about nuclear power people, gained public sentimental identification, and deepened the influence of publicity.

During the 19th CPC National Congress, CCTV broadcast the second episode of "Super Engineering III" "Source of Energy", demonstrating the rapid development of energy-driven Chinese economy, and showing the "super engineering" style of the global

first-batch third-generation AP1000 nuclear power plant in Haiyang, Shandong province. The company WeChat account's reprinted version gained more than 40,000 views, with over 1,600 likes. The company excavated typical strivers, held media interviews in major construction tours, and cooperated with the cctv program "The Power of Science" to shoot the feature film "Walking into the world of nuclear power people", which tells about changes in life and the progress in cultural and spiritual level from the perspective of workers.

SDNPC brand activity - the "nuclear power lecture"

A student of Yasha Junior High School introduces the nuclear science exhibition room

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68 69Shandong Nuclear Power Company CORPORATE SOCIAL RESPONSIBILITY REPORT 2017

Outlook 2018 The 19th CPC National Congress has put forward the requirement of "clean, low-carbon, safe and efficient" for energy development, and further defined the direction of energy development in the new era. In 2018, it is the first year for the implementation of requirements of the 19th CPC National Congress, and SDNPC will fear no challenges and take the initiative to provide clean, safe and efficient energy for the society and contribute to the development of a beautiful China.

SDNPC regards safety operation as the basis of all work. By further improving the post work safety responsibility system, we will continue to carry out various forms of nuclear safety culture promotion activities, strengthen the training on personnel safety knowledge and safety skills, and improve the employees' work safety awareness and skills.

SDNPC will continue to refine the rules and regulations on risk prevention and control, carry out full-coverage supervision and evaluation to ensure the practical implementation of risk control measures, launch and enhance the safety management of production contractors, and reinforce the professional level of safety supervision, so as to make risks controllable and controlled and further improve the intrinsic safety.

As a clean energy enterprise, SDNPC will play a leading role in low-carbon development, incorporate the concept of green development into all links of the operation and management, construct an environmentally friendly nuclear power plant to reduce negative impact on the ecological environment, accelerate the transition to new energy in Shandong province, and promote the harmonious development of ecological environment.

SDNPC will exert its advantages, continue to serve the development of local economy, further strengthen the standardized management of public welfare activities and increase the coverage and effects. We will promote the coordinated development of local economy, society and environment, convey the care and love of SDNPC people to the society and assume the responsibilities and duties of central enterprise.

SDNPC will firmly uphold the concept of "people-oriented", smooth the career development path and create a good living and working environment for the employees, realizing the common development and sharing of benefits between the employees and the company. Moreover, with creating a national civilized unit as the starting point, we will constantly improve the company's overall level of civilization.

SDNPC will adhere to the transparent and open communication concept, carry out more diverse and extensive communication activities with the public, explore the establishment of efficient communication mechanisms with all stakeholders, enhance the engagement of stakeholders, so that the "harmony culture" will not only be deeply rooted in the mind of employees, but also spread to the society.

Safe operation

Risk prevention and control

Low-carbon development

Regional co-construction

Happiness and harmony

Transparency and openness

Expert Reviews

I've carefully read the Social Responsibility Report 2017 of SDNPC, and I am genuinely happy for SDNPC's achievements. The Report of the 19th CPC National Congress emphasizes to build a clean, low-carbon, safe and efficient energy system. The Haiyang Nuclear Power Project under the construction and operation of SDNPC is the world's first batch of units built with the third-generation nuclear power AP1000, and is the first nuclear power project of North China power grid. In 2017, the Phase I Project fully entered the stage of commissioning to production, which is of great significance to ensure the power structure optimization and sustainable development in Shandong province, promote ecological environment protection, and improve the comprehensive strength and industrial technology level.

In 2015, the member states of the United Nations formulated the 2030 Agenda for Sustainable Development. The Agenda is a plan of action for people, planet and prosperity, setting the UN sustainable development goals, defining the direction and priority areas for global sustainable development. The good practices of SDNPC prove definitively that enterprises are the most important participants Without the active participation of enterprises, the goals will not be fully realized. SDNPC has made remarkable achievements in No Poverty, Climate Action, Decent Work, Economic Growth, and Partnerships for the Goals.

DNPC advocates the "striver-oriented" talent concept, cordially cares about the employees, creates a growth and development platform for them, and cultivates dedicated staff with first-class expertise and firm beliefs. As a clean energy production enterprise, SDNPC actively integrates green and low-carbon development into the company management and operation. As a pioneer in the industry, SDNPC has extensively carried out experience sharing and multi-cooperation, given full play to its resources and professional advantages, and became an important force for promoting industry progress and local development. As a central enterprise in Shandong, SDNPC actively contributes to the construction of a harmonious society, proactively cares for social needs and integrates relevant resources to support targeted poverty alleviation and cultural and educational development.

The Corporate Social Responsibility Report 2017 of SDNPC is the fifth CSR report issued by SDNPC. From all previous reports, it can be seen that SDNPC has deepened the understanding of corporate social responsibility, attached greater importance to information disclosure, and established more comprehensive and effective communication with stakeholders. The Report systematically reveals the idea, action and performance of SDNPC to intentionally integrate social responsibility into the whole process of management and operation.

According to the Report, SDNPC has comprehensively enhanced risk prevention and control measures, and the staff strived forward with great efforts. The management of nuclear safety, industrial safety, fire safety, information security, financial security and confidential security was reinforced, and the safety management of contractors in the production field was enhanced, with remarkable results achieved in all work, which has made full preparation for the subsequent fuel loading and production, and showed stakeholders the positive contributions made by the company to the regional and industrial development.

SDNPC particularly guaranteed the public participation, and extensively solicited suggestions from stakeholders through regular public seminars to enhance the effectiveness and openness of public participation, and effectively promoted the smooth development of community work and the project. In 2017, SDNPC held a public representative symposium, and heard from the public's suggestions and opinions on the work of the nuclear power station. Questions raised by stakeholders were answered, and valuable suggestions of the public symposium were included in the 2018 public communication work plan for implementation. In response to the public suggestions, SDNPC made responses through a series of activities.

It's hoped that SDNPC will continue to exert its advantages and inherit and carry forward "the spirit of SDNPC" in a finer way!

I wish SDNPC to make greater contributions to the sustainable development of China's nuclear power industry!

It is hoped that SDNPC will continue to enhance its sustainable development capacity and create greater economic, social and environmental value for stakeholders!

Guo Wei - Director of Department of Culture Building and Public Relations, China Electricity Council

Han Bin - Executive Secretary-General of UN Global Compact Network China

Yu Zhihong - President and Editor in Chief of China WTO Tribune

68 69Shandong Nuclear Power Company CORPORATE SOCIAL RESPONSIBILITY REPORT 2017

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70 71Shandong Nuclear Power Company CORPORATE SOCIAL RESPONSIBILITY REPORT 2017

Dear Readers,

4.Which issues are you most interested in of the Report?

5.Do you have other comments on the Report or our social responsibility work?

Thank you for reading our Report. We look forward to your opinions and recommendations so that we can improve future reports and our social responsibility management.

2. Your overall impression of the Report is

□ Very good □ Good □ Average □ Poor □ Very Poor

1. Which of the following stakeholders is most suitable for your status?

□ Government □ Employee □ Supplier □ NGO □ Community organization

□ Media □ The public □ Peer □ Other

Readability

Structure

3.In your opinion, the Report is

Very good Good Average Poor Very Poor

CSR information disclosed

Design

Reporting Index

G4

About the Report

Chairman’s Address

Our Mission

About Shandong Nuclear Power Company

Sustainable Development

Topic: Strengthening the Party Leadership

Outlook 2018

Comments from Experts

Reporting Index

Feedback from Readers

Giving Priority to Nuclear Safety

Brand Spokesperson

Construction of Nuclear Safety Management System

Construction of Nuclear Safety Culture

The Emergency Response Management System for Nuclear Power

Building a High-quality Team

Quality Assurance

Safety Management

Fire Safety

Information Security

Financial Risk Prevention and Control

Upgrading Confidentiality Measures

Providing Clean and Efficient Energy

Environmental Monitoring

Carrying out Energy Conservation and Emission Reduction

Conservation of Biodiversity

Promoting Local Development

Promoting Local Poverty Alleviation

Supporting Cultural and Educational Development

Carrying out Voluntary Service

Public Review of Community Work Plan

Public Spokesperson for Nuclear Power Plant

SDNPC in Eyes of the Media

Communication and Sharing

Promoting Supplier Management

Carrying out Industry-university-research Cooperation

Staff Training and Career Development

Protecting the Basic Rights and Interests of Employees

Caring for Occupational Health

Cordially Caring for the Employees

Creating a National Civilized Unit

14

14、56

PR1

LA8

LA8

15

EN27、SO2

EN6

EN12

EC1、EC7、EC8

EC7

EC7

EC8

16

EC9

16

LA1 、LA12、HR2

LA9、LA10

LA8

SO1

SO1

28、30、32

1、2、14

2、3、4、5、9、34

18、19、20、24、27、37、42、56、57、58

SO4

2、14

33

31

26、28、30、31

Directory

Keeping in Mind Risk Prevention and Control

Making Contribution through Low-carbon Actions in Shandong

Regional Co-development with High Quality

Multi-Party Cooperation for Win-Win Results

Building a Big Happy Family

Enriching Cultural and Sports Activities

Feedback from Readers

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E-mail:

Haiyang Nuclear Power Project, Haiyang, Shandong province

265116

+86-535-3871655

+86-535-3871700

[email protected]

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ocial Responsibility R

eport 2017S

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ompany LTD

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