Climate Change Data

Environmental Metrics

ESG Focus Areas

• Employment
• Occupational Health and Safety
• Development and Training
• Intellectual Property
• Anti-corruption

Environmental Achievements

• Sourced 4% of its total energy consumption from self-generated solar power
• Reduced electricity consumption intensity by exceeding the 2024 target
• Reduced water consumption intensity by exceeding the 2024 target
• Reduced sludge generation intensity by exceeding the 2024 target
• Invested more than RMB0.9 million to upgrade the emission treatment system at DGKD
• CSKY invested more than RMB0.5 million to build a centralized oil mist treatment facility, an activated carbon adsorption emission treatment facility and a linkage monitoring system with the government for pollution control

Social Achievements

• Implemented Lean Talent Certification Management Measures to strengthen the incentive of key technical talents and reduce the loss of them
• Improved employees’ welfare to guarantee their daily needs and enhance their sense of belongings
• Adopted safety policies, and regularly carried out safety trainings to improve the safe production awareness of employees
• Provided targeted trainings for reserved talents and cadres and adhered to the principle of giving specific trainings to key talents, giving preferential trainings to outstanding talents and giving comprehensive trainings to young talents
• Established IPE College of Engineering in GZXH to develop industry talents

Governance Achievements

• Established an Environmental, Social and Governance Committee (ESG Committee)

Climate Goals & Targets

Environmental Challenges

• Ongoing shortage of automotive chips and the impact of the domestic pandemic
• Significant decline in orders of the electronic equipment components business segment arising from the weak market sentiment in consumer electronics
• Decline in the price of recycled scrap in 2022
• Significant fluctuations in the raw material market
• Increase in the unit price of some raw materials
• Increase in transportation costs resulting from the pandemic
• Recurring pandemic in Shenzhen, Dongguan and Guangzhou
• Fluctuations in foreign exchange rates

Mitigation Strategies

• Carried out a number of automation projects to improve production efficiency, promote cost reduction and efficiency improvement, and enhance automation levels
• Implemented lean production
• Invested more resources in research and development
• Formulated the pandemic emergency plan, established the emergency team and maintained sufficient stocks of pandemic prevention materials
• Carried out pandemic prevention and control work in accordance with the national pandemic prevention and control measures
• Put a “zero-carbon factory” into operation in May 2022 at the production base in Guangzhou
• Carried out phase II photovoltaic projects
• Continued to cooperate through energy management contract (EMC) model
• Strengthened quality control
• Explored new drivers of business growth, continuously developed new markets, customers and products, expanded business channels, standardized operation and management, promoted automation transformation for lean production, built an integrated supply chain of production, supply and sales
• Improved order delivery rate through multiple channels and methods
• Developed e-commerce platform to pursue both online and offline development
• Strengthened hiring of new employees externally and promoted competent talents internally
• Maintained close communication with suppliers for raw materials control and management, and cultivated strategic partnership
• Vigorously promoted lean production, reduced cost and enhanced efficiency for all steps, and improved personnel and machine efficiency
• Optimized safety rules and regulations, implemented the production safety responsibility system, carried out production safety education and training as scheduled, and increased the intensity, breadth and depth of safety troubleshooting
• Optimized environmental rules and regulations, and carried out environmental training, publicity and hidden risk investigation to ensure compliant emissions

Supply Chain Management

Supplier Audits: Annual audits for suppliers to verify their environmental permits

Responsible Procurement

• Supplier Code of Conduct, Agreement on Trade Security

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, longer-term shifts in climate patterns

Transition Risks

• Policy and Legal, Technology, Market, Reputation

Opportunities

• Financial assistance, Technological opportunities, Market opportunities, Reputation opportunities

Reporting Standards

Frameworks Used: TCFD

Certifications: IATF16949:2016, AS9100:2016, ISO9001:2015, ISO14001:2004, ISO45001:2018

Awards & Recognition

• Certificate of Guangzhou Province High-Tech Products, Passed the 2022 Changshu Industry and Innovation Integration Platform Carrier Certification, Top 100 in the seventh Maker in China and Jiangsu SME Innovation and Entrepreneurship Competition, Jiangsu Multi-mode Intelligent Load Sensitive Valve Engineering Technology Research Centre received the title of “Provincial Engineering Centre”