Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Supply Chain Responsibility
• Corporate Governance
• Employee Development
• Community Engagement

Environmental Achievements

• Reduced greenhouse gas emissions per unit product (Scope 1 and Scope 2) by 10.33% compared to 2020.
• Achieved carbon neutrality at Yibin production base (certified by SGS in March 2022, covering January 1, 2021 to December 31, 2021).
• Ningde production base selected as a member of the World Economic Forum's Global Lighthouse Network.
• Reduced energy consumption per unit product by 24.3% compared to 2020.
• Increased renewable energy share to 22% (from 18% in 2020).

Social Achievements

• Conducted 50 due diligence investigations on the mineral supply chain.
• Carried out 14,000 training sessions for employees.
• Won the 2021 Best Investor Relations Award of China's Listed Companies.
• Implemented various employee wellbeing initiatives through the LOHAS platform.
• Provided RMB 1.51 million in emergency assistance to employees and their families.

Governance Achievements

• Strengthened governance and improved the integrity and compliance system.
• Established a top-down ESG management structure with a Corporate Sustainability Management Committee.
• Linked ESG performance indicators to department performance appraisals.
• Conducted more than 20 internal investigations into violations and fraud cases.

Climate Goals & Targets

Environmental Challenges

• Supply chain shortages and disruptions due to the COVID-19 pandemic.
• Increasingly tight supply chain for lithium-ion batteries due to the global push for carbon neutrality.
• Climate change related risks such as acute physical risks (typhoons, floods, droughts) and reputational risks.

Mitigation Strategies

• Accelerated expansion of production capacity by establishing ten production bases worldwide.
• Deepened industrial cooperation to ensure supply and delivery.
• Accelerated technological innovation to promote green and low-carbon operation.
• Improved ability to resist extreme weather events and implemented emergency management mechanisms.
• Openly and transparently disclosed actions and future plans on climate change issues to stakeholders.
• Developed innovative product solutions such as first-generation sodium-ion batteries.

Supply Chain Management

Supplier Audits: 50 due diligence audits in 2021

Responsible Procurement

• Supplier Code of Conduct
• Supplier Integrity Commitments
• Safe and Civilized Service Agreement
• Due Diligence Management Policy for Responsible Mineral Resources Supply Chain
• Incorporation of environmental and social responsibility requirements into supplier access appraisal clauses.

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons
• Floods
• Droughts

Transition Risks

• Policy and regulation changes
• Reputational risks

Opportunities

• Increased demand for low-carbon products and services
• Increased accessibility of renewable energy
• Improved resource efficiency
• Market opportunities in the low-carbon economy

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 50001:2018, ISO 14001:2015, ISO 45001:2018, ISO/IEC 27001, TISAX Level 3, PAS2060

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

CATL's initiatives contribute to these goals through renewable energy use, green manufacturing, waste reduction, and carbon emission reduction.

Sustainable Products & Innovation

• First-generation sodium-ion batteries
• Third-generation CTP technology
• AB battery system solution

Awards & Recognition

• 2021 Best Investor Relations Award of China's Listed Companies
• China Automobile Intellectual Property Outstanding Enterprise Award
• National Advanced Group of Professional and Technical Talent

Environmental Metrics

ESG Focus Areas

• Climate Change
• Supply Chain Sustainability
• Employee Well-being
• Community Engagement
• Corporate Governance

Environmental Achievements

• Reduced carbon emissions by 447,230 tonnes
• Reached 26.6% renewable electricity transition
• Lowered GHG emissions per unit product by 24.89%
• CATL-SC’s Yibin production base became the first “zero-carbon factory” in the global battery industry.
• Obtained EPD certification for 280Ah lithium iron phosphate cell products

Social Achievements

• Donated CNY 184 million to support public welfare undertakings
• Funded the construction of Chunfengli Campus of Primary School Affiliated to Ningde Normal University (CNY 110 million)
• Launched EVOGO battery swapping service
• Helped approximately 2,000 disadvantaged individuals obtain stable jobs
• Organized 799 volunteer activities with 12,893 participants

Governance Achievements

• Improved corporate sustainability governance by establishing the Sustainability Management Council
• Made significant progress in domestic and overseas mainstream ESG ratings
• Strengthened integrity management through various training programs and initiatives
• Completed due diligence audit of responsible mineral supply chains of 57 suppliers
• Launched the “CREDIT” transparency audit program on sustainable value chain

Climate Goals & Targets

Environmental Challenges

• Macroeconomic fluctuations
• Upsurge of upstream raw material prices
• Lingering pandemic
• Climate-related risks (extreme weather events, policy and legal risks)
• Transition risks (regulatory changes, market shifts)

Mitigation Strategies

• Intensified investment in R&D and innovation
• Strengthened market development and deepened customer partnerships
• Infused high-quality production capacity into operation
• Implemented all-around carbon management with over 400 energy conservation projects
• Developed alternative sourcing strategies and localized supply chains
• Established climate governance structure and risk management policies
• Developed climate change mitigation and adaptation strategies

Supply Chain Management

Supplier Audits: 35 suppliers of core raw materials audited

Responsible Procurement

• Supplier Code of Conduct Commitment
• Safety and Civilized Service Agreement
• Due Diligence Management Policy for Responsible Mineral Resources Supply Chain
• CREDIT program

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (typhoons, floods)
• Reputation risks

Transition Risks

• Policy and legal risks
• Low-carbon products and services

Opportunities

• Renewable energy transition
• Efficient resource management
• Emerging market of new energy and electrification
• Improve climate resilience

Reporting Standards

Frameworks Used: GRI Standards, UN Sustainable Development Goals (SDGs), MSCI ESG Ratings, S&P Global Corporate Sustainability Assessment (CSA)

Certifications: ISO 14001, ISO 45001, ISO 50001, IATF 16949, ISO 9001, ISO/IEC 27001, TISAX, PAS 2060

Third-party Assurance: SGS

UN Sustainable Development Goals

• Goal 1: No poverty
• Goal 4: Quality education
• Goal 7: Affordable and clean energy
• Goal 8: Decent work and economic growth
• Goal 9: Industry, innovation and infrastructure
• Goal 12: Responsible consumption and production
• Goal 13: Climate action

Details on how initiatives contribute to these goals are described throughout the report.

Sustainable Products & Innovation

• CTP 3.0 battery “Qilin”, sodium-ion battery

Awards & Recognition

• TIME's Best Inventions of 2022 (Qilin Battery)
• Corporate ESG Practice Award of the Year
• Influential Leading Enterprise
• Environmental Leap Forward Award
• 2022 ess Award (EnerOne)
• National Outstanding Contribution Organization for Cultivation of Skilled Personnel

Environmental Metrics

ESG Focus Areas

• Climate Change
• Supply Chain Sustainability
• Corporate Governance
• Employee Well-being
• Innovation

Environmental Achievements

• Increased share of zero-carbon power consumption to 65.43%
• Reduced greenhouse gas emissions per unit product by 45.55%
• Established four zero-carbon factories
• Brunp Recycling recycled 100,000 tons of used batteries and produced 13,000 tons of recycled lithium carbonate

Social Achievements

• Established a charitable foundation
• Became a member of the United Nations Global Compact (UNGC)
• Launched various initiatives for rural revitalization
• Organized specialized training sessions on sustainability for employees and suppliers

Governance Achievements

• Formulated the Donation Management System, Staff Loan Management Measures, and Internal Control and Risk Management System for Hedging Business
• Reviewed and updated 10 corporate governance frameworks
• Established a sound system for the assessment and remuneration management of Directors and Senior Management
• Implemented a robust corporate governance framework

Climate Goals & Targets

Environmental Challenges

• Intensified competition within the global electric vehicle (EV) battery industry due to global economic fluctuations, industry restructuring, and policy adjustments
• Significant challenges in communication and management of carbon emissions across its large-scale, diversified global supply chain
• Challenges in establishing seamless recycling channels and developing highly efficient recycling technologies for waste batteries

Mitigation Strategies

• Actively enhancing products and services through technological innovation and production capacity upgrades
• Developed the "CATL Carbon Chain" system for collaborative carbon reduction
• Advanced the second round of the "CREDIT" sustainability transparency audit in the value chain
• Brunp Recycling launched a comprehensive strategy to establish a robust battery recycling network and production bases

Supply Chain Management

Supplier Audits: 60 on-site audits

Responsible Procurement

• Supplier Code of Conduct
• Sustainability Agreement
• Due Diligence Management Policy for Responsible Mineral Resources Supply Chain

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Reputation risk

Opportunities

• Low-carbon products and services
• Renewable transition of own energy
• Efficient resource management
• Emerging market of new energy and electrification
• Improvement of climate resilience

Reporting Standards

Frameworks Used: GRI Standards (2021), UN Sustainable Development Goals (SDGs)

Certifications: ISO 14001:2015, ISO 45001:2018, ISO/IEC 27001, IATF 16949:2016, ISO 9001:2015, PAS 2060:2014 (CATL-XJ)

UN Sustainable Development Goals

• Goal 1
• Goal 4
• Goal 7
• Goal 8
• Goal 9
• Goal 12
• Goal 13

CATL actively evaluates the alignment of United Nations Sustainable Development Goals (SDGs) with its corporate responsibility practices, integrating sustainability management throughout its business operations while delivering innovative products and services.

Sustainable Products & Innovation

• Condensed Battery
• Shenxing Superfast Charging Battery
• CTP 3.0 Qilin Battery
• 5 MWh EnerD Series Liquid-cooled Energy Storage Prefabricated Cabin System
• Zero-auxiliary Source Optical Storage Integration Solution
• Qiji Battery Swap

Awards & Recognition

• One of the top ten "China ESG Models"
• 2023 Forbes China ESG Innovative Enterprise
• 2023 Outstanding Contribution in Sustainability Award from the Nobel Sustainability Trust (NST)
• Best Practice for Corporate Governance in 2023
• Excellent Practice Case for Boards of Directors of Listed Companies in 2023
• Best Practice Case for Office of Boards of Directors of Listed Companies in 2023
• China Industry Awards from China Federation of Industrial Economics
• Most Innovative Automotive Supplier in the "Drives" Category from the Center of Automotive Management
• TECHNOBEST Award from AUTOBEST
• Good Business - Green Technology Contribution Award of BusinessWeek/China
• European Inventor Award 2023
• First Prize of Guangdong Science and Technology Progress Award in 2022
• Forbes China Best Innovative Practice Employer of the Year
• SHL 2023 Talent Management Excellence Award
• LinkedIn 2023 Global Talent Magnet Employer
• 2023 China Best ESG Employer Award by Aon
• Enterprise Innovation Award and the Project Innovation Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Resource Utilization
• Pollutant Emission
• Ecology and Biodiversity Conservation
• Supply Chain Sustainability
• Employee Rights and Human Rights
• Staff Well-Being and Training
• Employee Health and Safety

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Guidance, training, and support to help suppliers achieve their sustainability goals; promoting environmentally and socially responsible practices; ensuring suppliers uphold labor and community rights and meet sustainable development standards.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Committed to supporting the United Nations Sustainable Development Goals.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed