Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social Responsibility
• Governance

Environmental Achievements

• Reduced carbon dioxide emissions (specific figures not provided, but mentioned as 3,258,513.62 tonnes in 2017)
• Adopted over 400 new energy vehicles for official travel and staff transport
• Utilized 1,781 BYD pure electric forklifts to replace traditional fuel-powered forklifts
• Built 42.3 MW solar power stations at its own production facilities

Social Achievements

• Launched various employee well-being initiatives (canteens, housing, transportation assistance, medical fund)
• Maintained 100% labor contract signing rate
• Held over 160,000 training sessions with above 680,000 training class hours
• Achieved 96% localization ratio of overseas employees in the U.S., Brazil and Hungary
• Donated RMB 7,904,400 to charity

Governance Achievements

• Established a Management Committee of Laws and Regulations to monitor compliance
• Implemented effective internal control mechanisms
• Established complaint channels to encourage whistleblowing
• Improved corporate governance structure

Climate Goals & Targets

Environmental Challenges

• Urban traffic congestion
• Air pollution from traditional fuel vehicles

Mitigation Strategies

• Promoting electric vehicles and BYD SkyRail
• Developing various integrated new energy plans

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• BYD Supplier Requirements
• BYD Supplier Audit Management Regulations
• BYD Management and Operation Rules on Suppliers’ Corporate Social Responsibility
• Sunlight procurement philosophy

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: ESG Reporting Guide (Stock Exchange of Hong Kong), SME board information disclosure business memorandum No.2 (Shenzhen Stock Exchange), CASS-CSR 3.0 (Chinese Academy of Social Sciences), GRI G4

Certifications: ISO9001, ISO14001, OHSAS18001, SA8000, ISO9001 (SkyRail), EN 15085 (SkyRail), ISO 3834-2 (SkyRail), ISO/TS22163 (SkyRail)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Electric vehicles
• Energy storage stations
• Solar power stations
• Electric forklifts
• LED lighting
• BYD SkyRail

Awards & Recognition

• 2017 Global Energy Storage “Tech Driver” (Beech Ridge FM Storage Project)
• World's “Top Innovation Award” (B-Box high-pressure energy storage system)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Efficiency
• Environmental Sustainability
• Employee Well-being

Environmental Achievements

• Reduced energy consumption by 670,000 kilowatt hours and 350 metric tons of CO2 emissions annually in Shenzhen plant.
• Reduced energy consumption by 1.3 million kilowatt hours and 700 metric tons of CO2 emissions annually in Huizhou plant.
• Potential savings of 5.8 MegaWatt hours of electricity, nearly 20,000 therms of natural gas and 2,600 metric tons of carbon dioxide emissions annually in Lancaster facility.

Social Achievements

• Improved working conditions for employees by implementing new cooling methods that increase air ventilation and reduce air pollution.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• High energy use in manufacturing facilities.
• Substandard air quality in manufacturing facilities.
• High energy demands in Lancaster facility due to size and desert climate.

Mitigation Strategies

• Partnered with EDF Climate Corps to identify and implement energy-saving projects.
• Implemented energy upgrades and regular maintenance on equipment.
• Implemented new cooling methods to improve air ventilation and reduce air pollution.
• Proposed a two-phase solar development for Lancaster facility.
• Proposed energy-saving measures for lighting, air conditioning and compressed air systems in Huizhou plant.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Electric vehicles, solar energy products and battery storage

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Legal and Compliance
• Social Responsibility
• Environmental Protection
• Green Technology
• Product Quality
• Employee Well-being
• Community Investment
• Supply Chain Management

Environmental Achievements

• Reduced energy consumption and carbon emissions through innovative energy management systems, renewable energy sources, and eco-friendly technology and management approaches.
• Generated 50.582 million kwh of electricity with solar panels across multiple campuses.
• Reduced water consumption through conservation plans and water recycling initiatives.
• Reduced waste through improved waste management practices and increased recycling.
• Deployed 737 new energy vehicles for business trips and employee commuting.
• Replaced traditional gas-powered forklifts with electric counterparts.

Social Achievements

• Invested over RMB11.72 million in targeted poverty alleviation programs.
• Launched training programs for new graduates and employees.
• Improved employee satisfaction through various initiatives.
• Provided employee benefits such as housing, transportation, and healthcare.
• Organized various employee engagement activities.
• Improved sales satisfaction index (SSI) by 1.38% YoY.

Governance Achievements

• Established and improved a system for protecting investors' rights.
• Improved transparency of operation through timely and sufficient information disclosure.
• Implemented a strict decision-making mechanism with regular self-evaluation processes.
• Established an anti-bribery management system and conducted anti-corruption campaigns.
• Updated supplier management policies to include prohibitions on conflict minerals.

Climate Goals & Targets

Environmental Challenges

• Global economic downturn and a more complicated market.
• Supply chain risks.
• Maintaining high product quality and customer satisfaction.

Mitigation Strategies

• Focus on technological innovation and optimization of corporate operation.
• Implemented a value-oriented procurement strategy and a transparent procurement initiative.
• Improved quality control measures, including special quality inspections and risk identification.
• Established a comprehensive customer relationship management (CRM) system.
• Improved sales complaint and review policies.

Supply Chain Management

Supplier Audits: Annual CSR review of suppliers; on-site inspections for high-risk materials.

Responsible Procurement

• BYD Supplier Requirements
• Specific Measures for BYD Suppliers Review
• Specific Measures for Supplier Corporate Social Responsibility Management
• Transparent Procurement Agreement
• Green procurement practices

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and renewable energy solutions.

Reporting Standards

Frameworks Used: ESG Reporting Guide and FAQs (Main Board Appendix 27) by the Stock Exchange of Hong Kong Limited, Memorandum No. 2 on the SME Board Information Disclosure Business: Periodic Report Disclosure by the Shenzhen Stock Exchange, G4 Sustainability Reporting Guidelines by the Global Reporting Initiative (GRI), CASS-CSR guidelines

Certifications: ISO 9001:2015, IATF 16949:2016, China Compulsory Certification (CCC)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Electric vehicles, energy storage systems, solar panels, LED lighting, SkyRail, SkyShuttle.

Awards & Recognition

• Shenzhen Top 10 Charity Enterprise
• Poverty Alleviation Enterprise of 2019 (People’s Daily)
• Kapok Cup Award
• Shanghai Chedun Charity Star
• Shenzhen Top 10 Caring Enterprises Award (2019)
• 2019 Annual Enterprise Poverty Alleviation Award
• Prestigious Energy Storage Award
• Chinese private enterprises top 500
• “Change the World” list
• First prize, China Society of Automotive Engineers Technological Advancement Award
• Gold medal for design patent, the 21st China Patent Award
• Top 70 innovative enterprises in Shenzhen
• Enterprise with outstanding anti-fraud achievement
• 2019 Annual Enterprise Poverty Alleviation Award
• Guangdong top 100 private enterprises
• 2019 Shenzhen top 500 enterprises
• Top 10 Caring Enterprises, 2019
• Shenzhen Best Employer Award
• Second prize of the 2018 National Award for Science and Technology Progress
• China’s top 10 energy storage integration providers