Water Resource Management

Management Approach (MA) for Material Topic

FPCC's Board of Directors and senior management team attach great importance to the impact that the low-carbon transition and sustainable development has on the Company's long-term business operations, and takes related issues into consideration when implementing corporate governance and business decision-making. Through regular meetings and internal management mechanisms, the Board of Directors monitors how the Company has implemented efficiency improvements, energy transition measures, and net-zero strategies, ensuring that these actions align with the Company's own mid-to-long term business targets and risk management principles.

The Company has established a disciplined investment and decision-making evaluation process following the Management Rules for Internal Enterprise Investment Operations. When implementing projects related to the lowcarbon transition, the Company conducts a comprehensive assessment of market trends, technological maturity, investment conditions, and expected benefits and risks, and also evaluates the impact on the environment and stakeholder rights. After completing an investment or project, their results are periodically reviewed on a rolling basis, and used as an important reference when considering future resource allocations and strategy adjustments.

Under the Company's governance framework, senior management is responsible for planning and implementing lowcarbon transition strategies and actions following the instructions of the Board of Directors. The Company's existing investment and review system integrates production, engineering, environmental protection, and management resources from across different departments to implement energy conservation and carbon reduction measures, process optimizations, adjust the energy use composition, and evaluate new technologies. Through a clear management system and cross-department collaboration mechanism, FPCC has been able to ensure operational stability, supply security, and protect stakeholder rights while enhancing environmental benefits and energy efficiency. This has allowed us to continue strengthening our operational resilience in the face of external environmental changes.