Pollution Risk Index Annual Report.pdf

Online Pollutant Data Index of Publicly-Listed A-Share Companies Annual Report Securities Times Corporate Social Responsibility Research Center Institute of Public rather, we believe that the degree of compliance, number of enterprises disclosing real-time online monitoring ination, and publication status of data on disclosure plats are all interrelated factors that influence a region’s presence or lack thereof on the 79 53 3 0 10 20 30 40 50 60 70 80 90 Ammoniacal nitrogen Chemical oxygen demand COD pH level 7 index. Figure 8 Geographical distribution of key monitored publicly-listed companies and their affiliates that were placed on the Environmental Index Figure 9 2014-2015 Pollution Ination Transparency Index PITI self-monitoring ination disclosure provincial scores In comparison with IPE’s 2014-2015 Annual Pollution Ination Transparency Index PITI Assessment Report of 120 Cities, indd companies were overrepresented in the provinces which scored higher for their self-monitoring ination plats, such as Shandong, Anhui, Hubei, Inner Mongolia, Jiangxi, Zhejiang and Ningxia, as these plats publicized ination more completely, and their overall quality of ination continues to be relatively high. On the other hand, Chongqing and Qinghai have yet to make an appearance on the Environmental Index, and 0 2 4 6 8 10 12 14 16 18 20 Sh an do ng An hu i Hu bei Inn er Mo ng oli a Jia ng xi Zh eji an g Jili n Ni ng xia Hei lon gji an g Sh an gh ai Xin jia ng Fu jia n Heb ei Lia on ing Gu izh ou Hen an Jia ng su Sh aa nx i Yu nn an Ga ns u Hu na n Gu an gd on g 0 5 10 15 20 25 Sh an do ng Jia ng xi Gu izh ou Sh an gh ai Zh eji an g Hu be i Ni ng xia Fu jia n An hu i Inn er Mo ng oli a Sh aa nx i Jili n Jia ng su He be i Hu na n Ga ns u Lia on ing Bei jin g Gu an gx i Xin jia ng Tia nji n Hen an Sic hu an Yu nn an Sh an gx i Gu an gd on g Ch on gq ing Qi ng ha i Hei lon gji an g 8 unsurprisingly the scores allocated to their self-monitoring ination plats happen to be among the lowest. Differences in the status of online data publication in different provinces reveal discrepancies in the level of environmental disclosure across various provinces. The present levels of ination disclosure are relatively higher in provinces with higher totals of indd corporations, and provinces with inadequate ination disclosure subsequently have lower totals of indd corporations. Apart from the often stark difference in excess emissions behavior across key monitored enterprises, the main reason for such differences across regions lies with the differences in the publishing processes for various regions. Online data real-time publishing is helpful for societal supervision and environmental law enforcement, which then pushes companies to implement emissions compliance and improve environmental management. Recently, the CPCs Ningxia Party Committee’s 7th plenary session passed Ningxia’s 13th five-year plan, which encourages all polluting enterprises to implement online monitoring and for excess emitters to be heavily penalized. At the same time, Beijing has already implemented disclosure of city-level enterprise online monitoring data, and Shenyang has promoted disclosure of online monitoring data for enterprises monitored at the city level. Our project group analysts believe that the above ination indicates more corporations will implement online monitoring in the future, and on- site inspections of enterprises will increasingly be supported by real-time data. 5 Chemicals, public utilities and building materials are the top three industries for excess emissions based on online monitoring data During the monitoring period, based on the industry classifications for publicly-listed companies laid out in the “Shenwan Industry Classification 2014 edition,“ companies that exceeded emissions standards hailed from a total of 17 different industries. The three industries indd most often are chemicals, public utilities and building materials. This report’s research mainly focuses on air emissions and wastewater pollutant emissions, and thus shows that the outlook is not optimistic for the environmental compliance situation of industrial wastewater and air emissions for publicly-listed companies of the three aforementioned industries, as well as for municipal wastewater treatment plants and other relevant enterprises. According to the SWS industrial classifications, the chemical industrys sub-sectors consist of petrochemicals, chemical raw materials, chemical products, chemical fibers, plastics, and rubber. The public utilities industry sub-sectors include electricity, water, gas, and environmental engineering and services. The building materials industry consists of cement manufacturing, glass manufacturing and other building materials. From this, it can be seen that apart from the traditional key industries for air pollution control, such 9 as iron and steel, cement, electricity and glassmaking, the compliance situation of air emissions and wastewater discharge from the chemical industry equally merits attention. Figure 10 Industry distribution SWS of the publicly-listed companies affiliated with key monitored enterprises whose emissions exceeded standards 6 The total number of indd companies from the Shanghai Stock Exchange far exceeded that of other stock exchanges Enterprises from the Shanghai Stock Exchange comprised over 60 of the overall research scope. Looking at the status of the final index, there were far more indd enterprises from the Shanghai Stock Exchange than from the Shenzhen Exchange, the Small and Medium Enterprise Board and the Growth Enterprise Market. Secondly, comparing the rate at which enterprises were indd, the Shanghai Exchange is home to the highest percentage of corporations indd, at 8.54. Based on Chinas Annual Publicly- Listed Company Yearbook, the number of publicly-listed companies traded on the Shanghai Stock Exchange is much greater than that of the Shenzhen Stock Exchange. Therefore, when looking at absolute totals, the overall percentage of indd companies that are traded on Shanghai Exchange seems reasonable. Another key indicator, the rate at which key publicly-listed companies for pollutant emissions and their affiliates were listed on the index, is also higher for the Shanghai Exchange than for the Shenzhen Exchange. The above two points together indicate that at present, there is ample room for improving the compliance of online pollutant emissions for companies listed on the Shanghai Stock Exchange. 25 20 11 10 9 8 5 4 3 2 2 2 1 1 1 1 1 0 5 10 15 20 25 30 10 Figure 11 Stock exchange distribution of key monitored enterprises that exhibited excess emissions during the monitoring period 72 23 10 1 8.54 7.03 5.99 3.57 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 0 10 20 30 40 50 60 70 80 Shanghai Stock Exchange Shenzhen Stock Excahnge Small and Medium Enterprise Board Growth Enterprise Market Number indd Rate of being indd 11 3. Company Feedback Characteristics and Case Analysis During the uation period, a total of 28 companies responded to their being placed on the list, and at present the majority of them have essentially achieved emissions compliance. Company feedback mainly exhibits the following characteristics. Chart 1 List of companies that responded to being placed on the index Indd Company Name of times ranked Company Region Affiliated Publicly Listed Co. Stock Emissions Type Relevant Affiliate Ownership percentage Response Response Speed Cooperate with the Report 1 Xinjiang XHD Mining Co., Ltd 47 Xinjiang Jiugang Hongxing 600307 Air Emissions Subsidiary 100.00 Local EPB Over a week Yes* 2 Xinjiang Guanghui New Energy Co. Ltd. 33 Xinjiang Guanghui Energy 600256 Air emissions Wastewater Subsidiary 100.00 Telephone Email Over a week Yes* 3 Guozhong Qinhuang- dao Sewage Treatment Co., Ltd. 30 Hebei Guozhong Water 600187 Wastewater Subsidiary 100.00 Local EPB Over a week Yes 4 China Aluminum Shandong Co., Ltd. 28 Shandong China Aluminum 601600 Air emissions Subsidiary 100.00 Telephone, Local Communica tion Same Day Yes* 5 Shanghai Shenergy Xinghuo Thermo- electric LLC 23 Shanghai Shenergy Shares LLC 600642 Air emissions Subsidiary 75.00 Telephone, Email Same Day Yes 6 Dafeng Sunshine Thermo- electric LLC. 23 Jiangsu Jiangsu Sunshine 600220 Air emissions Subsidiary 100.00 Telephone, Email Same Day Yes* 7 Shandong Jinjing Technology 21 Shandong Jinjing Technology 600586 Air emissions Mother Company - Telephone, Email Same Day - 12 Shares Co., Ltd. 8 Zhongzhou Aluminum Co., Ltd. 19 Henan China Aluminum 601600 Air emissions Subsidiary 100.00 Telephone, Local Communica tion Same Day Yes* 9 Shandong Hailong Shares Co., Ltd. 16 Shandong *ST Hailong 600677 Air emissions Branch Co. - Telephone Less than a week - 10 Yucheng Xinyuan Thermal Power Co., Ltd. 14 Shandong Tongyu Heavy Industry 300185 Air emissions Joint Owned and Operated Co. 46.24 Weibo Less than a week No* 11 Zaozhuang Tengzhou Jinjing Glass Co., Ltd. 12 Shandong Jinjing Technology 600586 Air emissions Subsidiary 92.85 Telephone, Email, Local Communica tion Same Day Yes* 12 Shenhua Shendong Power LLC Guojiawan Plant 9 Inner Mongolia China Shenhua 601088 Air emissions Branch Co. 100.00 Telephone, Email Same Day - 13 SDIC Xinjiang Luobupo Hoevellite Co., Ltd 8 Xinjiang Guannong Co., Ltd. 600251 Air emissions Joint Owned and Operated Co. 20.30 Telephone Same Day No* 14 Jiande Conch Cement LLC 8 Zhejiang Conch Cement 600585 Air emissions Subsidiary 100.00 Telephone, Weibo Over a week Yes 15 Shandong Pharma- ceutical Glass Co., Ltd. 8 Shandong Shandong Pharmaceutical Glass 600529 Air emissions Mother company - Local EPB Over a week - 16 Shanghai Wujing Power Generation Co., Ltd. 8 Shanghai Shenergy Shares Co., Ltd. 600642 Air emissions Joint Owned and Operated Co. 50.00 Telephone, Email Same Day No* 13 17 Pingxiang Jiaohua Co., Ltd. 7 Hunan Sangang Minguang 002110 Air emissions Joint Owned and Operated Co. 5.56 Telephone Same Day No* 18 Xinjiang Bayi Iron and Steel Baicheng Co., Ltd. 6 Xinjiang Bayi Iron and Steel 600581 Air emissions Subsidiary 94.00 Telephone Same Day Yes* 19 Fujian Qingshan Paper Industry Co., Ltd. 6 Fujian Qingshan Paper 600103 Air emissions Mother company Public Announcement Less than a week - 20 Anhui Huatai Forest Pulp Figure 13 Total number of environmental supervision records for indd enterprises in 2015 Environmental supervision records 141 records Pollutants exceeding emissions standards 122 records Multiple violations 26 companies 20  Three companies Ningxia Xinan Technology Ltd., Guozhong Qinhuangdao Sewage Treatment Co., Ltd., and Jiangxi Liuguo Chemical LLC were found to secretly release emissions without reporting them or to discharge directly to the environment without treating their emissions, or to have tampered with online monitoring equipment and falsified data, making for reprehensible illegal behavior. Of these three companies, one of them – Ningxia Xinan Technology Ltd. – falsified its online data monitoring data, resulting in the EPB placing the responsible persons in administrative detention for seven days.  Two companies Anhui Huatai Forest Pulp the company was also required to hand over an emissions fee of 2,600,000 RMB. The responsible parties at the company were accused of tampering with and falsifying monitoring data, and sentenced to 5 days’ administrative detention. 2 Four companies Dalian Shipbuilding Industrial Group, Lianyungang SECCO Waste Disposal, Mulei County Yihua Donggou Mining, and Inner Mongolia Wuhai Chemical were found to have violated Environmental Impact Assessment EIA procedures. Two of these companies Dalian Shipbuilding and Lianyungang SECCO Waste Disposal were ordered to halt production.  Analysis of types of environmental penalties issued to companies that have not yet disclosed data Figure 20 Types of environmental penalties issued to companies that have not yet disclosed data Based on the chart, the greatest proportion of environmental supervision records are classified as “other,“ which is due to such situations as emissions having exceeded standards but the relevant authorities having not yet determined the appropriate penalty, administration deadline or raised forth remediation requirements. There were 19 penalties levied to the companies that do not yet disclose online data, totaling 5,427,400 RMB. These penalties include two instances of daily penalties that together total 1,930,000 RMB, comprising approximately 36 of the total fines. Shanxi Stainless Steel Co., Ltd., alone was fined 1,650,000 RMB. Standard penalty 35 Daily fines 5 Blacklisted for supervision 2 Administrative detention 2 Halt production 5 Other 51 30 In 2015, of the enterprises affiliated to non-disclosing companies, some enterprises received numerous environmental penalties such as fines, daily penalties, orders to halt production and other severe penalties. Two companies exhibited multiple instances of excess emissions and were subjected to daily penalties or multiple fines. One of these companies was Dalian Shipbuilding Industrial Group, whose supervisory monitoring data results from March 26, 2015 showed total concentration of suspended solids in its effluent to be 34 mg/L, and a total phosphorus concentration of 2.3 mg/L. These readings exceed the Liaoning Province Integrated Wastewater Discharge Standards DB21/1627-2008, which stipulate that suspended solids in wastewater discharge must be limited to 20 mg/L, with phosphorus concentration limited to 0.5 mg/L. Therefore, Dalian Shipbuilding exceeded the legal limit by respective multiples of 0.7 and 3.6. On April 29, 2015, an investigation into the environmental violation was carried out and samples were collected, with monitoring results showing total phosphorus concentration of the wastewater to be 1.02 mg/L, which was still in excess of the legal limit by 1.04 times. Thus, from April 16 through April 29 the company was subjected to daily penalties of 280,000 RMB. Online data can reflect a given enterprises environmental perance in real-time. Through online data disclosure, EPBs can better discover and push for corrective actions at companies that violate environmental regulations. Companies themselves can also use the data as a of early- adoption s for improving environmental perance and avoiding heavy costs to their operations and production. 31 6. Conclusions and Recommendations 1 Conclusions 1． The level of online monitoring ination disclosure for key monitored enterprises that are publicly-listed or affiliated with publicly-listed companies is higher than that for key state-monitored enterprises as a whole The Measures on Self-Monitoring and Ination Disclos