To standardize and guide the community engagement approach at the operation sites of projects (institutions) of China Shenhua Energy Co., Ltd. (hereinafter referred to as China Shenhua or the Company), to establish a synergistic and orderly community communication and grievance handling mechanism, to ensure effective communication with local community stakeholders, to genuinely protect the legitimate rights and interests of the local community, and to build a mutually beneficial and harmonious relationship between the Company and the local community, this guideline is formulated in accordance with the Universal Declaration of Human Rights, the United Nations Guiding Principles on Business and Human Rights, the United Nations Declaration on the Rights of Indigenous Peoples, and other relevant regulations and standards, combined with the actual conditions of the Company.
I. Scope of Application
This guideline applies to all controlling projects (institutions) of China Shenhua, including investment projects related to engineering construction or production and operation that are directly or indirectly controlled by China Shenhua and are in the planning or preliminary, construction, and operation stages, as well as the enterprises or institutions responsible for these projects.
II. Basic Principles
The work of community communication and grievance handling at the operation sites of China Shenhua projects (institutions) follows the principle of Free, Prior and Informed Consent (FPIC) and abides by the requirements of tailoring strategies to local circumstances, maintaining a hierarchical structure, ensuring legal compliance, and practicing openness and transparency. "The one who governs is the one who bears responsibility." It is required to respond in a timely manner to community concerns or grievances related to project (institution) investment, development, construction, and operation and properly resolving disagreements and disputes related to project (institution) investment, development, construction, and operation.
III. Management Agencies and Responsibilities
The Company has established a leadership group for community communication and grievance handling work at project (institution) operation sites (hereinafter referred to as the leadership group) to exercise unified leadership over community communication and grievance handling work. The leadership group is responsible for coordinating the management of the Company's community communication and grievance handling work at project (institution) operation sites, and studying and deliberating on the handling of major violations at project (institution) operation sites.
China Shenhua’s Planning and Development Department (hereinafter referred to as the Planning Department) and the International Business Department (Overseas Business Department) (hereinafter referred to as the International Department) are respectively the centralized management departments for community communication and grievance handling work at the operation sites of domestic and overseas projects (institutions) of the Company. Their main responsibilities are: based on relevant regulations and the actual conditions of the Company, formulating the guideline for community communication and grievance handling work at project (institution) operation sites, supervising subsidiary companies to establish and improve the systems and methods for community engagement and communication, grievance handling, relevant information reporting and disclosure at project (institution) operation sites, and supervising the implementation of those systems and methods.
Each subsidiary company is responsible for the organization, implementation, management and assessment of community communication and grievance handling work at project (institution) operation sites, and should determine the departments which bear the main responsibilities. The main responsibilities are: in accordance with the Company's guideline requirements and combined with local project conditions, formulating management methods for community communication and grievance handling work at their project (institution) operation sites and supervising the implementation of those methods; organizing, managing, and assessing community communication and grievance handling work at their project (institution) operation sites; and reporting the community communication and grievance handling work at their project (institution) operation sites to the centralized management departments of China Shenhua each year.
The project (institution) serves as the primary implementer and responsible party for the community communication and grievance handling work. Its primary responsibilities include: executing the Company's regulations and the management methods of the superior administrative units, formulating implementation rules for the community communication and grievance handling work in accordance with the actual conditions of the host country (region) and revising them regularly to ensure their continuing effectiveness; setting up a community relations management office and appointing a dedicated or part-time person in charge, who serves as the first person responsible for community communication and grievance handling; effectively conducting community communication and grievance handling work to build harmonious and stable local relations; periodically reviewing and summarizing the community communication and grievance handling work of the project (institution) and reporting it to superior administrative units, etc.
IV. Main Tasks
The project (institution) is the primary implementer of the community communication and grievance handling work. The main tasks are as follows:
(I) Identify all potential stakeholders
Before establishing a new operating site (during the project planning phase), the project (institution) should identify all affected stakeholders based on the conditions of the project (institution) location and prepare a list of stakeholders. During the construction or operation of the project, the project (institution) should dynamically update the list of stakeholders to ensure that all stakeholders are included in the scope of community communication and grievance handling, thus protecting the rights of stakeholders and maintaining good relations with local community.
(II) Establish and improve the community communication and grievance handling mechanism
1. The project (institution) should establish a communication and grievance handling mechanism that respects local community cultural traditions and social landscape, and formulate related implementation rules.
2. The project (institution) should set up a Community Relations Management Office (hereinafter referred to as "the Office"), which is responsible for managing community communication and grievance handling. Staffing for the Office should give preference to hiring local employees. A Community Relations Manager should be appointed to be responsible for managing the daily work of the Office, coordinating community communication and grievance handling, and establishing a communication dialogue mechanism with the local community.
3. Based on the reality of the project (institution) operation sites, a variety of means should be employed such as setting up reception rooms, opening hotline numbers, establishing dedicated mailboxes for community opinions, and creating public social media accounts for community engagement. These are made available to the public in the local community as open communication and complaint channels, to comprehensively collect the local community's opinions, suggestions, and complaints about the development, construction, and operation of the project (institution).
4. The Office is responsible for receiving complaints and concerns from the local community regarding the investment, development, construction, and operation of the project (institution). The Office should properly collect and record relevant information, assess and analyze complaints and concerns according to the work agenda, and actively resolve them, ensuring reasonable demands are incorporated into the project (institution) work agenda and lead to enhancements in project (institution) operations. For complaints and concerns that could significantly impact the project (institution), the project (institution) should develop solutions and report to the superiors based on decision-making authority.
5. Complaints and concerns included in the project (institution) work agenda should be resolved within the promised reasonable timeframe, and the results should be promptly communicated to the community in an appropriate form. Prompt response and dialogue should be ensured for issues that cannot be immediately resolved.
6. The project (institution) should regularly review the implementation of the community communication and grievance handling mechanism. In accordance with the project progress, changes in local community culture and customs, and socio-economic development, the project (institution) should timely revise and update relevant system documents and working mechanisms to ensure their continuing effectiveness.
(III) Carry out communication and publicity activities
Before establishing a new operating site (during the project planning phase), the project (institution) should strictly adhere to the principle of free, prior and informed consent (FPIC), fully communicate with all stakeholders, and strive to gain the understanding and support of the local community to the maximum extent.
During the construction or operation phase of the project, the project (institution) should carry out a variety of publicity and dialogue activities according to project conditions, local community religious beliefs, and cultural customs, to allow the local community to further understand the project (institution), and assist the local community to participate in the construction and management of the project (institution) in an appropriate manner.
(IV) Information Disclosure
The Company will periodically disclose relevant information about the community communication and grievance handling work at the project (institution) operation sites in an appropriate form through channels such as the Company's official website and ESG annual reports.
