We are committed to building an environmentally-friendly corporation that is intently focused on conserving our Earth’s resources. Our management team has been particularly focused on a number of initiatives to reduce energy consumption and emission though investments, technical reconstruction, and energy efficiency benchmarking to improve our overall the level of energy saving, environmental protection and sustainability.

1. Strengthening Environmental Protection Systems
We attach great importance to the development of our environmental protection systems. We signed agreements with our subsidiaries to acknowledge their responsibilities related to safety and environmental protection. Key performance indicators for energy conservation and emission are tracked by all areas of our company, and our performance evaluation system also allows us to map out responsibilities down to the individual level.

2. Actively Responding to Global Climate Change
Recycling and utilizing greenhouse gases: Recognizing the extent of carbon emissions from the grain and oil processing industries, we have started to recycle greenhouse gases emitted during the processing stages of our production process. For example, reduced emission of methane was achieved by transmitting methane to a boiler for blending coal, direct power generation and other means. Guangxi COFCO Bio-Energy Co., Ltd. recycled CO2 emitted during the fermentation process, which has not only provided economic benefits, but has also helped reduce annual emission of CO2 by 15,000 metric tons.

A pioneer in the development of bio-energy - non-grain-based fuel ethanol: As a renewable bio-energy, fuel ethanol can not only help reduce society’s dependence on fossil fuels, but also decrease the amount of CO2 and hydrocarbons in automobile exhaust. We have taken part in the planning and development of the country’s plan to build a fuel ethanol industry in provinces such as Heilongjiang and Guangxi. Using fuel ethanol as a substitute for fossil fuels such as gasoline can reduce the emission of greenhouse gases. Annual CO2 emissions can be reduced by 6,000,000 metric tons. Meanwhile, we are also helping to achieve the goal of developing a sustainable non-grain-based fuel ethanol industry in China that does not cannibalize grain that is used for food, or land that is used for traditional farming.

3. Growing energy savings and emission reductions
Enhancing fundamental management: We focused on building energy conservation and emission reduction teams. Regarding energy conservation and emission reduction, we issued the China Agri-Industries Holdings Limited Management Regulations for Energy Conservation and Emission Reduction, organized relevant training, improved the statistical, monitoring and evaluation systems, and intensified inspections. We implemented lean management instead of just focusing on key indicators about energy conservation and emission reduction.

Expanding scope of energy auditing: In order to analyze, evaluate and monitor our management of resources and consumption of energy, we have hired professional groups to audit and assess our initiatives. By detecting problems early, analyzing results, and developing energy saving plans, we believe we can improve efficiency, reduce production costs and realize our full potential as an organization.

Waste recycling: We believe waste recycling can both help the environment while simultaneously increasing economic returns. As such, we strictly control the emission of pollutants and we actively direct our resources to projects that can help expand our initiatives in environmental protection.