Climate Change Data

Hengdian Group DMEGC Magnetics Co., Ltd.

Climate Impact & Sustainability Data (2023-01 to 2023-12)

Reporting Period: 2023-01 to 2023-12

Environmental Metrics

Total Carbon Emissions:845,075.78 tCO2e/year
Scope 1 Emissions:70,981.59 tCO2e/year
Scope 2 Emissions:774,094.19 tCO2e/year
Renewable Energy Share:100% (for headquarters module factories and Jiangsu DMEGC)
Total Energy Consumption:1,130,719.55 MWh/year
Water Consumption:555.46*10,000 tons/year
Waste Generated:37,033.24 tons/year

ESG Focus Areas

  • Corporate Governance
  • Environmental Management
  • Supply Chain Management
  • Employee Rights and Wellbeing
  • Community Engagement
  • Climate Change
  • Product Quality and Innovation

Environmental Achievements

  • Jiangsu DMEGC achieved 100% green power coverage.
  • Headquarters module factories achieved 100% green power coverage.
  • Reduced carbon emissions by implementing technology upgrades (specific examples provided in the report, but not quantified in a single percentage).
  • Reduced wastewater discharge (specific amounts provided, but not a single percentage).
  • Improved packaging material recycling efficiency from 50% to 55%.
  • Successfully launched 18 new globally leading products in the industry.

Social Achievements

  • Honored as a Model Unit for the Construction of an Honest Private Enterprise in Jinhua City.
  • Implemented the philosophy of “co-creation, co-ownership, co-prosperity and co-sharing”.
  • Consolidated diversified and fair career growth paths.
  • Improved occupational health and safety measures.
  • Improved overseas expatriate employee care initiatives.
  • Actively undertook social responsibility and gave back to the community (details provided).

Governance Achievements

  • Merged the Strategy Committee and the ESG Management Committee into the Strategy and ESG Committee.
  • Enhanced the risk control and management system and set up a Risk Control Committee.
  • Improved shareholders’ rights protection and shareholder return planning.
  • Information disclosure evaluated as A-level for five consecutive years.

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality by 2050.
Medium-term Goals:
  • Reach peak carbon emission by 2030.
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Global economic deceleration, heightened geopolitical tensions, climate change, supply chain disruptions.
  • Risks of entrusted financial products failing to be redeemed as scheduled.
  • Potential impact of supply chain issues on business operations.
Mitigation Strategies
  • Optimized corporate governance structure.
  • Enhanced risk control and management system.
  • Improved shareholders’ rights protection and shareholder return planning.
  • Established the Risk Control Committee.
  • Revised the entrusted financial management system.
  • Optimized planning and management for the supply chain.
  • Improved the authenticity and compliance of data through comprehensive advancement in informatization and digitalization.

Supply Chain Management

Supplier Audits: 169 suppliers audited by social responsibility standards in 2023; 940 suppliers evaluated monthly.

Responsible Procurement
  • Supplier Code of Conduct
  • Supplier Integrity Commitment
  • Supplier Quality Assurance Agreement
  • Non-disclosure agreements (NDA)
  • Sunshine procurement
  • Monthly meetings for supply section leaders
  • Anti-corruption education

Climate-Related Risks & Opportunities

Opportunities
  • Opportunities in clean technology (photovoltaic, energy storage).

Reporting Standards

Frameworks Used: GRI Standards, UN Sustainable Development Goals (UNSDGs), SASB Standards, GB/T 36001, Guidelines No. 1 for Self-Regulation of Listed Companies, CASS-ESG 5.0

Certifications: ISO 14001, ISO 45001, IATF16949, ISO 9001, SA 8000, ISO/IEC 17025

Third-party Assurance: TÜV NORD (Hangzhou) Co., Ltd.

Sustainable Products & Innovation

  • Low-carbon products
  • N-type TOPCon high-efficiency solar cells

Awards & Recognition

  • National High-tech Enterprise
  • National Technology Innovation Demonstration Enterprise
  • National Green Factory
  • Model Unit for the Construction of an Honest Private Enterprise in Jinhua City
  • Bosch Global Supplier Award
  • Other awards listed in the report