Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Replaced all coal-fired boilers with energy-efficient gas-fired boilers, saving approximately 378 tonnes of standard coal per boiler annually.
• Invested approximately RMB78 million to install photovoltaic panels, generating approximately 15,000 MWh of electricity annually and reducing approximately 12,690 tonnes of carbon dioxide emissions.
• Awarded "2016 Energy-Saving and Low-Carbon Technology Application Corporate" by Wuxi Energy Conservation Monitor Center.

Social Achievements

• Offered 170 internship positions to students.
• Employed 48 fresh graduates, 37 with tertiary education or above.
• Donated over 600 clothing items to Wuxi Red Cross.
• Donated RMB100,000 to Guanlin Town Li Dou Cun after a flood.
• Established a "Sponsorship and Education Fund", sponsoring over RMB10 million in infrastructure, construction, and education.
• Donated over RMB5 million to the Yixing City Charitable Foundation.
• Established the "Love Fund" to help needy employees.
• Awarded the Certificate of Safety Production Standardisation by the Wuxi City Safety Production Monitoring Authority.
• Honored as a 2016 Standardisation Demonstration Corporate by China Electrical Equipment Industry Association.
• Awarded the Certificate of China Private Enterprise Culture Building Advance Unit by China Research Institute of Enterprise Culture.

Governance Achievements

• Established a remuneration committee, nomination committee, audit committee, and corporate governance committee.
• Complied with the ESG Reporting Guide as set out in Appendix 27 to the Listing Rules.
• Adopted a code on securities transactions by Directors.
• Maintained a zero-tolerance policy towards bribery, corruption, extortion, fraud, and money laundering.

Climate Goals & Targets

Environmental Challenges

• Volatile global political environment and sluggish macroeconomic conditions.
• Decreasing copper prices putting pressure on product prices.
• Catastrophic flood disaster in Central China.
• Increased transportation costs due to new regulations on overloaded vehicles.
• Keen competition in the industry.
• Fluctuation in non-ferrous metal prices.

Mitigation Strategies

• Adjusted operational strategies to seize opportunities from power distribution network reconstruction, city smart grid construction, and rural power grid upgrades.
• Strengthened cooperation with high-quality state-owned enterprises.
• Added an extra-high voltage cable production line.
• Adjusted selling prices of some affected stocks to secure sales.
• Made provision for impairment loss of inventory.
• Stepped up investments in scientific research to optimize production processes and enhance product quality.
• Expanded market presence in overseas markets, including engagement in an EPC project in Kenya and strategic cooperation with China Gezhouba Group.

Supply Chain Management

Supplier Audits: Regular on-site assessment of suppliers

Responsible Procurement

• Procurement control procedures to ensure raw material quality

Climate-Related Risks & Opportunities

Physical Risks

• Catastrophic flood disaster

Opportunities

• Market opportunities arising from renewable energy

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix 27 to the Listing Rules)

Certifications: ISO 14064-1:2006 (Wuxi Jiangnan Cable), Certificate of Safety Production Standardisation, 2016 Standardisation Demonstration Corporate

Third-party Assurance: China Quality Certification Centre (for Wuxi Jiangnan Cable greenhouse gas emissions)

Awards & Recognition

• 2016 Energy-Saving and Low-Carbon Technology Application Corporate
• Certificate of Safety Production Standardisation
• 2016 Standardisation Demonstration Corporate
• Certificate of China Private Enterprise Culture Building Advance Unit

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced greenhouse gas emissions; used energy-efficient gas-fired boilers instead of coal-fired boilers; installed photovoltaic panels to generate solar energy; installed air pollutants collectors on certain machineries; enhanced rain and sewage diversion systems; was accredited as one of the first state-level “Green Factories”

Social Achievements

• Offered 86 internship positions; employed 291 fresh graduates; donated to a local village; established “Sponsorship and Education Fund”; committed to donating at least RMB10 million for social charity development; established the “Love Fund”; visited and supported employees in need; provided free health check programmes and training courses on work safety

Governance Achievements

• Established a zero-tolerance policy towards bribery, corruption, extortion, fraud and money laundering; established reporting channels for suspected business irregularities; adopted a dividend policy; adopted a board diversity policy; established an inside information policy

Climate Goals & Targets

Environmental Challenges

• Downward pressure on the Chinese economy affecting demand for power cables; decrease in power supply work investments; increase in operating costs due to tougher requirements on green development practices; misappropriation of inventories; increase in impairment losses on financial assets; increase in selling and distribution costs; increase in administrative expenses; increase in finance costs; decrease in sales in South Africa

Mitigation Strategies

• Consolidation of the wire and cable industry; utilizing competitive advantages in terms of size, quality and brand; developing high-value products; improving production technology; using advanced technologies to improve production efficiency; strengthening controls on business risks; adhering to product differentiation strategy; developing new markets; enhancing team building; conducting due diligence on counterparties to sales contracts; carrying out more ad hoc checks on the sales operating system

Supply Chain Management

Supplier Audits: Regular on-site assessments

Responsible Procurement

• Procurement control procedures; long-term quality monitoring; regular reviews over major suppliers and subcontractors

Climate-Related Risks & Opportunities

Physical Risks

• Flooding (mentioned in relation to inventory damage)

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Appendix 27 to the Listing Rules

Certifications: ISO 14064-1:2006 (Wuxi Jiangnan Cable), AEO Customs Advanced Certification

Third-party Assurance: China Quality Certification Centre (for greenhouse gas emissions of Wuxi Jiangnan Cable)

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• State-level “Green Factories”; AEO Customs Advanced Certification; 2017–2019 Jiangsu Material Cultivating and Developing International Famous Brands; Jiangsu Famous Brand Certificate; National Customer Satisfaction Enterprise; Top 50 Original Industrial Brand Names in Jiangsu Province; Certificate of Safety Production Standardisation; 2017 Advanced Managing Corporate

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced carbon emissions (details in report, but not quantified)
• Replaced coal-fired boilers with energy-efficient gas boilers, saving approximately 378 tons of standard coal per boiler annually.
• Installed solar panels generating approximately 20,062 MWh of electricity, saving approximately 7,824 tons of standard coal annually.

Social Achievements

• Reduced employee turnover from 29.3% in 2018 to 7.8% in 2019.
• Provided employee training programs (details in report).

Governance Achievements

• Established a comprehensive occupational safety and health management policy.
• Implemented a share incentive plan to reward employees and retain talent.

Climate Goals & Targets

Environmental Challenges

• Overall economic downturn in China in 2019, impacting demand for cables.
• Decline in LME copper and aluminum prices, affecting product pricing.
• US-China trade war (though impact on Jiangnan Group was minimal).

Mitigation Strategies

• Increased investment in technology upgrades and expansion.
• Maintained long-term partnerships with strategic clients.
• Explored potential markets in Southeast Asia and South America.
• Implemented a more conservative approach to sales to the real estate sector.

Supply Chain Management

Supplier Audits: Regular on-site assessments of suppliers for product quality and suitability.

Responsible Procurement

• Strict review process for selecting suppliers; encouragement of supplier responsibility and adherence to Jiangnan Group's ESG standards.

Climate-Related Risks & Opportunities

Physical Risks

• Flooding (implied from report)

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO 14064-1:2006 (for greenhouse gas emissions - Wuxi Jiangnan Cable), ISO 19642 & T/CAS356–2019 (for new energy vehicle high-voltage cables)

Third-party Assurance: China Quality Certification Centre (for greenhouse gas emissions - Wuxi Jiangnan Cable)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Low-carbon, energy-efficient cables for smart grids; new energy vehicle high-voltage cables; nuclear cables.

Awards & Recognition

• One of the first national-level "Green Factories" in China.
• 2017-2019 Jiangsu Province's Key Cultivated and Developed Internationally Renowned Brands
• Jiangsu Provincial Famous Brand Product Certificate
• National Market Quality Credit A-level User Satisfaction Benchmark Enterprise
• Top 50 Jiangsu Province Independent Industrial Brands
• Top 10 Most Competitive Enterprises in China's Cable Industry

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced greenhouse gas emissions; Achieved compliance with ISO 14064-1:2006 (Wuxi Jiangnan Cable); Installed photovoltaic panels generating approximately 19,768 MWh of electricity; Awarded as one of the first state-level “Green Factories” and one of “2019 Climate Pioneer Corporation”

Social Achievements

• Offered 153 internship positions and permanent jobs to students; Employed 150 fresh graduates; Donated to local schools; Established “Sponsorship and Education Fund”; Committed to donating at least RMB10 million for social charity development; Donated power cable products and anti-epidemic materials to combat COVID-19; Established Jiangnan Group “Love Fund”; Held employee training camp; Held “Finance and Taxation Knowledge Quiz Competition”

Governance Achievements

• Established a code of corporate governance; Established a Remuneration Committee, a Nomination Committee, an Audit Committee, and a Corporate Governance Committee; Adopted a code on securities transactions by Directors; Complied with the CG Code (except for the combined roles of Chairman and CEO); Implemented a director nomination policy

Climate Goals & Targets

Environmental Challenges

• Overall economic downturn in China and the world due to the COVID-19 pandemic; Reduced demand for products due to the pandemic; Decrease in overseas business due to the pandemic; Fierce market competition; Slow recovery of receivables from real estate enterprises; Rise in copper prices

Mitigation Strategies

• Adopted a more conservative approach to sell products to real estate enterprises; Increased investment in technological transformation and imported world-class production equipment; Implemented various contingency measures, including employee health management procedures; Maintained sufficient credit facilities with banks; Improved marketing quality, management, and service capabilities; Focused on high-end markets; Expanded customer base in second-tier and third-tier cities; Developed international markets; Strengthened efforts to collect loans in arrears; Intensified efforts to train marketing managers and management team building; Computerized operations and knowledge management; Promoted safe production and green manufacturing

Supply Chain Management

Supplier Audits: Regular on-site assessments

Responsible Procurement

• Procurement control procedures to ensure raw material quality; Encouraging suppliers to reduce environmental and social risks

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix 27 to the Listing Rules)

Certifications: ISO 14064-1:2006 (Wuxi Jiangnan Cable), AEO Customs Advanced Certification, Jiangsu Famous Brand Certificate, National Customer Grade A Satisfaction Benchmarking Enterprise, Certificate of Safety Production Standardisation

Third-party Assurance: China Quality Certification Centre (for greenhouse gas emissions of Wuxi Jiangnan Cable)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Green Factories
• 2019 Climate Pioneer Corporation
• AEO Customs Advanced Certification
• Jiangsu Material Cultivating and Developing International Famous Brands
• Jiangsu Famous Brand Certificate
• National Customer Grade A Satisfaction Benchmarking Enterprise
• Top 50 Original Industrial Brand Names in Jiangsu Province
• Top 10 Competitors in China Cables Industry
• Certificate of Safety Production Standardisation
• Advanced Managing Corporate

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employee Welfare
• Stakeholder Engagement
• Social Responsibility

Environmental Achievements

• Jiangnan Cable, a major subsidiary, complied with ISO 14064-1:2006 in 2019, with carbon emissions not exceeding the prescribed level.
• Awarded the first “Pioneering Enterprise in Global Climate” in the cable industry in the PRC.

Social Achievements

• No layoffs during the COVID-19 outbreak; employees paid in accordance with laws and regulations.
• Jiangnan Cable provided materials for the construction of Leishenshan Hospital in Wuhan and allocated cable materials to flood-damaged Enshi.
• All-rounded and persistent occupational training provided to staff.
• Various experiential activities organized for staff.
• No health and safety incidents affecting staff during the reporting period.

Governance Achievements

• Adopted code provisions set out in the CG Code.
• Established an interactive platform to communicate with investors.
• Complied with all applicable code provisions of the CG Code.

Climate Goals & Targets

Environmental Challenges

• COVID-19 outbreak reduced domestic and overseas demand for products, particularly impacting export business due to logistics disruptions.
• Significant decrease in profit due to decreased turnover, increased costs (selling, distribution, administrative, and transportation), and exchange loss.
• Overall domestic and overseas economic risks and uncertainties, including intensified China-US conflicts.
• Actual investments by SGCC did not reach 40% of planned investments in the first half of 2020.

Mitigation Strategies

• Strengthened employee health management to prevent COVID-19 spread.
• Resumed production and operation among the first batch of enterprises in Yixing City.
• Exploring more financing options to support future capital expenditures.
• Consolidating management foundation and pushing forward intelligent, green, and lean manufacturing to reduce expenditure and implement highly efficient management.
• Optimizing product mix and improving product quality.
• Setting up four 35kV ultra high-speed production lines for medium voltage cross-linked cables and planning to import four additional lines.
• Planning to acquire land for construction use to release development potential.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO 14064-1:2006

Certifications: ISO 14064-1:2006 (Jiangnan Cable)

Third-party Assurance: China Quality Certification Centre

Awards & Recognition

• First “Pioneering Enterprise in Global Climate” in the PRC cable industry
• Wuxi Public Overseas Warehouse
• Excellent Enterprise in Outstanding Industrial City of Wuxi
• Wuxi Demonstrative Enterprise in Credit Management
• Yixing City Top Ten Enterprises in Tax Contribution
• Yixing City Demonstrative Enterprise for High Quality Industrial Development
• Yixing City Demonstrative Enterprise for Scientific and Technological Advancement
• Yixing City Advanced Collective for Science and Technology Association Work of Enterprise

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced greenhouse gas emissions; Achieved compliance with ISO 14064-1:2006 for carbon emissions (Wuxi Jiangnan Cable); Installed photovoltaic panels generating approximately 20,988 MWh of electricity; Awarded as one of “Green Factories”, one of “Industrial Product Green Demonstration Enterprises” and one of “Green Supply Chain Enterprises”

Social Achievements

• Offered 14 internship positions and permanent jobs to 9 students; Employed 9 fresh graduates; Donated more than RMB500,000 to local schools; Awarded the Certificate of Safety Production Standardisation; Honoured as an Advanced Managing Corporate

Governance Achievements

• Adopted anti-bribery and anti-corruption policy; Established whistle-blowing policy; Complied with all significant legal and regulatory requirements

Climate Goals & Targets

Environmental Challenges

• Significant one-off specific provision made for certain receivables due from customers in the property sector, including the provision made for the receivables due from the subsidiaries of the Evergrande Group amounting to approximately RMB878.4 million; Increase in selling and distribution costs; Increase in administrative expenses; Global economic uncertainty; Evergrande debt crisis resulting in approximately RMB880 million in accumulated receivables

Mitigation Strategies

• Made provision for bad debts for all receivables due from Evergrande; Closely monitoring the progress of repayment with frequent dialog with the management of Evergrande; Sending reminder to Evergrande and reconciling the outstanding balances due; Negotiating alternative means of settlement in lieu of cash; Taking appropriate legal action such as filing civil petitions to the courts for demanding repayment of overdue balances; Strengthening the construction of its management team; Carrying out in-depth production and lean management; Enhancing cash flow control; Focusing on smart manufacturing and digital transformation; Adhering to market positioning of “marketing + brand promotion”

Supply Chain Management

Supplier Audits: Regular on-site assessment on product quality and suitability

Responsible Procurement

• Rigorous practices to ensure supply chain accountability; Prioritising suppliers with a low carbon footprint

Climate-Related Risks & Opportunities

Physical Risks

• Cyclones, natural disasters, floods

Transition Risks

• Stringent policies and reporting requirements for corporate sustainability

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix 27 to the Listing Rules)

Certifications: ISO 14064-1:2006 (Wuxi Jiangnan Cable), AEO Customs Advanced Certification

Third-party Assurance: China Quality Certification Centre (CQCC) for greenhouse gas emissions (Wuxi Jiangnan Cable)

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Green Factories
• Industrial Product Green Demonstration Enterprises
• Green Supply Chain Enterprises
• AEO Customs Advanced Certification
• Jiangsu Material Cultivating and Developing International Famous Brands
• Jiangsu Famous Brand Certificate
• National Customer Grade A Satisfaction Benchmarking Enterprise
• Top 50 Original Industrial Brand Names in Jiangsu Province
• Top 10 Competitors in China Cables Industry

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employee Welfare
• Stakeholder Engagement
• Social Welfare

Environmental Achievements

• Jiangnan Cable, a major subsidiary accounting for over 70% of Group turnover, complied with ISO 14064-1:2006 in 2021, with carbon emissions not exceeding prescribed levels.

Social Achievements

• Various experiential activities were organized for staff.
• All-rounded and persistent occupational training provided to staff.
• No events affecting staff health and safety occurred during the reporting period.
• Donations made to various causes, including cultural education, sports, disaster relief, poverty relief, medicine, and sanitation.

Governance Achievements

• Adopted code provisions set out in the Corporate Governance Code.
• Established an interactive platform to communicate with investors.
• Strictly performed disclosure obligations, ensuring information is true, timely, accurate, and complete.

Climate Goals & Targets

Environmental Challenges

• Slowdown of economic growth in the PRC due to the COVID-19 pandemic and complex international environment.
• COVID-19 outbreaks in key economic regions impacted operations, limiting raw material supply and finished goods delivery.
• Transportation obstructions resulted in a backlog of finished products and increased working capital needs.
• Downturn in the real estate industry negatively impacted sales of related wire and cable products.

Mitigation Strategies

• More competitive pricing offered for products to cope with the adverse impact of the COVID-19 pandemic.
• Investments in equipment and technological transformation (e.g., installation of ultra-high-speed catenary production lines, technical transformation of rubber sheathed cables production).
• Focus on smart manufacturing and digital transformation to improve processes and meet market needs.
• Strengthening staff team through training and competitions to improve efficiency and reduce manufacturing costs.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Advanced Unit of Quality Association in Jiangsu Province
• Credit Management Demonstration Enterprise in Jiangsu Province
• Abiding by Contracts and Credit Worthy Enterprise in Jiangsu Province
• Top Ten Special Cable Brands in 2022
• Civilized Unit in Jiangsu Province
• Provincial AAA-level Cultivation Object of Demonstration Enterprise for the Integration of Industrialisation and Industrialisation Management System
• Provincial Star Cloud Five-star Enterprise