Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Invested approximately RMB 710 million in energy conservation and environmental protection in 2016.
• Participated in the formulation of the “National VI” emission standards and received the “Outstanding Contribution Award for the Compilation of China's Light Vehicle Phase VI Emission Standards”.
• Reduced VOCs emissions by over 290 tons through the adoption of new painting technologies at Beijing Hyundai.
• Implemented energy-saving technical improvement projects to achieve energy saving and efficiency improvement.
• Achieved significant reductions in greenhouse gas emissions through various initiatives.

Social Achievements

• Implemented a “1-2-3” integrated quality prevention and interception system to improve product quality.
• Total employee training hours reached 1,770,364, with an average of 70.4 hours per employee.
• Launched the “Eaglet Plan” to cultivate young employees.
• Carried out various public welfare activities, including the “Qinghai Yushu Public Welfare Education Trip” and the Inner Mongolia desertification control project.
• Established a volunteer team to participate in various large-scale events.

Governance Achievements

• Established a compliance management system and implemented internal regulations such as the “Compliance Management Measures” and the “Compliance Reporting Management Measures”.
• Strengthened anti-corruption education and publicity.
• No lawsuits were known to have arisen from violations of anti-corruption, anti-bribery, anti-fraud, and anti-money laundering laws and regulations during the reporting period.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: 161 suppliers received training in 2016

Responsible Procurement

• Developed a supplier relationship management information system (SRM) to monitor and manage the entire supply chain.
• Implemented a supplier “four-quadrant” management system.
• Prioritized the procurement of environmentally friendly suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Hong Kong Stock Exchange's Environmental, Social and Governance Reporting Guidelines, Global Reporting Initiative (GRI) G4

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• New energy vehicles

Awards & Recognition

• Outstanding Contribution Award for the Compilation of China's Light Vehicle Phase VI Emission Standards
• 2016 Global Excellent Operation Factory - Best Large-Scale Manufacturer

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Beijing Benz and Beijing Branch awarded "green plant" title by the Ministry of Industry and Information Technology.
• Reduced carbon emissions through various initiatives (specific figures not provided).

Social Achievements

• Achieved a win-win situation with suppliers.
• Focused on employee growth and development, with a 3.92% employee turnover rate.
• Supported community development through various initiatives.

Governance Achievements

• Established a sound corporate governance structure.
• Improved anti-corruption prevention and supervision system.
• No litigation arising out of violation of laws or regulations against corruption, bribery, fraud, and money laundering.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: 328 long-term cooperative suppliers; 92.4% of suppliers performing relevant practices.

Responsible Procurement

• Centralized and specialized procurement; supplier management system; supplier assessment and performance evaluation systems; green supply chain management and control measures; supplier training.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and new energy vehicles.

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide, GRI G4

Certifications: OHSAS 18001:2007

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Good health and well-being
• Gender equality
• Decent work and economic growth
• Sustainable cities and communities
• Responsible consumption and production

Not disclosed

Sustainable Products & Innovation

• New energy vehicles.

Awards & Recognition

• Numerous awards listed in Appendix (page 60)

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Social responsibility
• Corporate governance

Environmental Achievements

• Reduced GHG emissions from 1,175,228.00 tCO2e in 2018 to 908,042.21 tCO2e in 2020.
• Reduced total wastewater discharge from 2,679,115 tons in 2018 to 1,978,428.20 tons in 2020.
• Beijing Benz reduced carbon dioxide emissions by 25,605 tons through photovoltaic power generation.

Social Achievements

• Launched various employee wellbeing initiatives, including special care for pregnant and lactating women during the COVID-19 outbreak.
• Organized safety competitions and educations, resulting in 133 reasonable proposals on production safety.
• Donated RMB 2 million to the China Charity Federation and organized a blood donation activity with over 1,000 participants.

Governance Achievements

• Established an ESG working group responsible for promoting ESG work and reporting to the Board of Directors.
• Implemented internal policies including Compliance Management Measures, Compliance Reporting Management Measures, and a corporate code of business conduct.
• Maintained MSCI-ESG ratings of A for two consecutive years.

Climate Goals & Targets

Environmental Challenges

• Impact of the COVID-19 outbreak on financial position, results of operations, and prospects.
• Risks relating to macroeconomic volatility and decreased consumer demand.
• Increased market competition in the automotive industry.
• Fluctuation in raw material prices and supply.
• Emission and environmental protection policies.

Mitigation Strategies

• Continuous attention to the impact of COVID-19 and implementation of relevant measures.
• Monitoring of China’s macroeconomic situation and taking measures to respond to economic fluctuations.
• Maintaining and improving market position through appropriate measures.
• Developing a well-developed foreign exchange management strategy to control foreign exchange rate risks.
• Active response to environmental policies and compliance with relevant laws and regulations.

Supply Chain Management

Supplier Audits: 401 suppliers audited

Responsible Procurement

• Measures of BAIC Motor for Admission Management of Supplier Providing Purchased Parts
• Measures of BAIC Motor on Performance Evaluation of Suppliers
• Measures for Management and Control of Green Supply Chain of BAIC Motor

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Emission and environmental protection policies

Opportunities

• Development of energy-efficient products and new energy vehicles

Reporting Standards

Frameworks Used: ESG Guide, GRI Standards

Certifications: ISO9001:2015, IATF16949:2016

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• BEIJING-EU5 and BEIJING-EU7 electric vehicles

Awards & Recognition

• MSCI-ESG ratings of A for two consecutive years
• The third prize of 2020 China Automotive Industry Awards for Science and Technology
• China Patent Excellence Award

Environmental Metrics

ESG Focus Areas

• Environmental, Social, and Governance

Environmental Achievements

• Reduced carbon dioxide emissions (specific figures not provided, but mentions initiatives like improving engine thermal efficiency, developing hybrid models, and building distributed PV power generation projects)
• Reduced VOC emissions (mentions specific projects at Zhuzhou Branch Plant No.2 and Beijing Hyundai)
• Reduced hazardous waste (mentions specific projects at BAIC Guangzhou)
• Increased recycling packaging rate (mentions specific project at Beijing Benz)

Social Achievements

• Launched employee well-being programs (mentions various activities like celebrating Chinese New Year, sports events, and providing assistance for employees in need)
• Implemented a performance and competence-based remuneration system
• Established an enterprise annuity system
• Carried out extensive employee training programs (mentions the "B-EST" training system and other initiatives)
• Maintained a low employee turnover rate (2.29%)

Governance Achievements

• Established a comprehensive ESG management system
• Implemented anti-corruption policies and training programs
• Complied with relevant laws and regulations

Climate Goals & Targets

Environmental Challenges

• Macroeconomic volatility impacting consumer demand
• Increased market competition
• Fluctuation in raw material prices and supply (especially chip shortage)

Mitigation Strategies

• Continuous monitoring of macroeconomic conditions and taking responsive measures
• Maintaining and improving market position through various initiatives
• Strengthening supply chain management and developing alternative sourcing strategies

Supply Chain Management

Supplier Audits: 352 suppliers audited (100% coverage)

Responsible Procurement

• Green supply chain management
• Supplier certification (ISO 14001)
• Environmental and social risk management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (floods, typhoons)
• Rising temperatures affecting operations

Transition Risks

• Policy and regulatory changes
• Market risks related to supply and demand
• Reputational risks

Opportunities

• Development of energy-efficient products and industry chains

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001 (environmental management system), ISO 9001 (quality management system)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Beijing EU5 and EU7 electric vehicles
• Beijing X7 hybrid model

Awards & Recognition

• Beijing Intelligent Manufacturing Energy Measurement Center (Auto Manufacturing) (Beijing Benz)