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Jizhong Energy Group Company Limited: Three Don’ts to Construct Social Responsibilities Management System

2016-04-20Sino-Swedish Corporate Socialadmin0010

Company Profile
Jizhong Energy Group Company Limited (Jizhong Energy) is a state owned coal company by merging Jinniu Energy Group and Jizhong Energy Fengfeng Group. Jinniu Energy Group is its holding listed company. Based on coal, Jizhong Energy is engaged in Coal mining, washing and processing, coal chemical industry, electric power, mechanical and structural material industries and modern logistics. It is a large-sized state-owned coal enterprise group with the mission of multi-industrial comprehensive development.
Challenges
There are frequent related injuries and casualties during coal mining, followed by the common negative reports. How to produce coal safely, reduce energy consumption, and reasonably and effectively use limited resources to keep sustainable development has become a challenging issue for the whole coal industry .how to carry out the social responsibility management also is a new task for the coal enterprises.
Solutions
Jizhong Energy sets "don't produce coal with blood, don’t pursue development with high energy consumption, and don't make progress with heavy pollution” as its social responsibility management system.
Don't produce coal with bloodbut achieve the win-win of stakeholders
In 2008, when Jizhong Energy made its economic indicators achieve the historically best level in raw coal production, plant production, sales input, profits etc., its safety in production is  also basically stable. The concept of " I am responsible for ,my safety "gain popularity among its employees. Through the technology upgrading and equipment reform, the casualty rate per million tons is 0.2, below the average national level of state-owned coal mine. 30 mines realized the safety in production of mine, and a great proportion of subsidiaries achieved the "zero death ".
Not content with the basic protection and safety of  employees life,  the group further pursue to improve the quality of life of employees ,Such as free healthy system, installing air conditioning for the employee’s dormitories and the employees' career development to provide advantages for employee to learn from skill training ,make improvement and post promotion.
Not only employees, but the interests of the public around the mining area are also taken into account. Jizhong Energy made the overall plan from noise and dust prevention, water pollution, green and so on, and achieve the good effect of "No gangue pull up from the mines, no coal on the ground and three-dimensional greening" under strict management, and thus has won the "Advanced Afforestation Coal Company in Hebei Province ", “Garden Style Company in Hebei Province “, and" Outstanding Environmental Company in National Coal System  " and other awards.
Jizhong Energy’s performance also made shareholders satisfied. Every investor's voice was valued and protected. To facilitate communication, the group opens its fax 24 hours a day and makes instant replies for the emails to the mail box of chairman secretary and company mailbox. Modern and efficient work style make it be rated as " 2005 China Benchmarking Enterprise  for Enterprise Informatization” , the 107th  among the top 500 of 2005 China Enterprise Informatization, and the Best Management Innovation of top 500 of 2005 China Enterprise Informatization by the Informatization Office of State Council.
As the enterprise in production field, Jizhong Energy, to a certain extent, also burdens the risks with buyers. Jizhong Energy made cooperation with one company and won the bid for the cement supply of B01 block in the passenger dedicated line of Beijing-Shanghai high-speed railway. In the background of global financial crisis and the decreasing prices of the raw material, Jizhong Energy reduced the supply price of cement after consultation and made consensus, alleviating the fund pressure of trade partners.
“Don’t pursue development with high energy consumption and don't make progress with heavy pollution”, the mechanism and innovation are the guarantee
Effective mechanism
Faced with new tasks brought by scientific development, Jizhong Energy Group put forward its outline and specific plans. Jizhong Energy holds the idea that under the guidance of the 17th CPC national congress it should implement the scientific development policy, support cyclic economy, undertake mining jobs environmentally and build a resource-saving and environment-friendly enterprise. Jizhong Energy adopted different measures to achieve its energy-saving and emission-reducing goal. Jizhong Energy also established a team headed by its chairman to lead the energy-saving and emission-reducing work. The group company, subsidiaries, factories and workshops all had their own teams, every of which signed the letter of responsibility. To ensure that the goal is achieved, Jizhong Energy set such instructors as the whole energy consumption, electricity consumption and energy consumption in every working procedure. Every employee in every position got his work. Some projects and factories, no matter how profitable they were, were stopped because of high energy-consumption, heavy pollution and bad management.
Technological innovation
To recycle more coal resources, Jizhong Energy ungraded the working face, improve mining technology and management. It made the recovery rate of stope face reaching 97.7% and recovery rate of mining area reaching 91.85%, 4.7 and 16.8 percentage points higher respectively than the state line. By incorporating, merging some local coal mines and adding its coal reserves, Jizhong Energy protected some resources. By making some technological breakthrough, Jizhong Energy managed to exploit coal from some areas where coal mining was thought impossible. According to statistics, Jizhong Energy exploited thousands of tons of coal resource form these areas.
It is inevitable that coal gangue would be produced in the process of coal mining. Traditionally, dealing with coal gangue used to cause pollution to the air, water and soil.    How to realize "green mining"? after several trials, XingDong Mine  took the lead to lead to create the new technology of underground gangue filling mining in China, and realized " no need to pull up  gangue from the mine and no gangue piles on the ground " , eliminating the impact of gangue on the cultivated land and  environment. At the same time, the group made use of the gangue to fill the coal roadway in mined-out area, which maximized the exploitation of coal resources. The technology has won the " China's Coal Industry Top Ten Technological Innovation Achievement Award". Thus, the mine recollected more than 1.2 million tons coal resources than before, won 360 million yuan of economic benefit and reduced about 100 mu cultivated land. It effectively protected the cultivated land, improved the environment around the mining area. Hebei Provincial Government State-owned Assets Supervision and Commission have made comprehensive promotion of the mine practice. Jizhong Energy also widely used this practice within the enterprise as long as the mines are suitable for the technology. The current technology also can exchange the coal under buildings and villages. The technology has drawn great attention of the domestic and foreign counterparts, attracted domestic and foreign counterparts to visit and learn, improving the image of China's coal industry.
Achievement
From the perspective of the stakeholder relationship of labor and supply chain, environmental protection, Jizhong Energy adopted technological innovation to improve the interests of all parties significantly. Its own economic interests and social interests also have moved forward and gradually achieved green win-win cooperation with all parties. So far, Jizhong Energy possesses the total assets of 28.298 billion yuan, with net assets totaled as 11.65 billion yuan. The coal reserves of Jizhong Energy have reached 15 billion tons, with 2 billion-ton recoverable reserves, which lays a solid resource foundation for the sustainable and rapid development of the company.
Prospect  
In the future, Jizhong Energy will take the new advantage of the group to obtain more resources shares, further develop the coal industry and related to industries by establishing mature and stable financing platform to realize the rapid development and corporate expansion. On this basis, the group will seize the complementary advantages of intensive management and human resources configuration to comprehensively improve the group’s management efficiency and the level of security development, further to promote Jizhong Energy step into the new stage of orderly development, intensive utilization, energy conservation and emissions reduction, and sustainable development.
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