Climate Change Data

AAC Technologies Holdings Inc.

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:641,012 tCO2e
Scope 1 Emissions:5,292 tCO2e
Scope 2 Emissions:635,720 tCO2e
Renewable Energy Share:66.7%
Total Energy Consumption:1,097,723,644 kWh
Water Consumption:11,598,835 tonnes
Waste Generated:24,261 tonnes
Carbon Intensity:0.31 tCO2e per ten thousand RMB revenue

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Generated over 33.4 million kWh of renewable energy, a 66.7% increase from 2022.
  • Reduced carbon emission in Shenzhen by 20% compared to 2022.
  • Achieved over 90% waste diversion rate at two major plants in Changzhou and Shenzhen.

Social Achievements

  • Established the Group’s Talent Management Committee.
  • Introduced AAC People, an integrated talent information platform.
  • Invested RMB 55.4 million in safe production.
  • Upgraded the grievance system, receiving active responses from employees.

Governance Achievements

  • Published the Redline Control System to provide clear guidelines on prohibited conduct.
  • Established the Group’s Supply Chain Committee.
  • Established the Quality and Operations Committee.

Climate Goals & Targets

Long-term Goals:
  • Maintain carbon emission at 5% lower than the government’s quota each year in Shenzhen.
Medium-term Goals:
  • Achieve 75% clean energy consumption at 2 major Changzhou plants in 2030.
Short-term Goals:
  • Reduce total water consumption of all Changzhou plants by 3%.

Environmental Challenges

  • Rapid response to rapidly changing industry and labour market trends.
  • Increased regulatory scrutiny and inspection.
  • Exploration of new technologies adds to compliance cost.
  • Fast response to clients’ requests on product designs.
  • Building confidence with stakeholders requires complete compliance and adherence to ethical standards.
Mitigation Strategies
  • Attracting and retaining talent, particularly among the younger generation.
  • Close monitoring of the implementation of the Water Recycling Project and the Clean Water Programme.
  • Continued to install water-saving equipment.
  • Provided training to employees on water saving.
  • Enhanced assembly lines using MES system.
  • Regular risk assessments on compliance and labour issues.
  • Passed all customer CSR audits during the year.

Supply Chain Management

Supplier Audits: 86 assessments for new suppliers

Responsible Procurement
  • Supplier Code of Conduct
  • CSR Commitment Letter
  • Conflict Mineral Declaration
  • RBA and GeSI Conflict Free Smelter Audits

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events (e.g., typhoons)
  • Prolonged periods of extremely hot weather
Transition Risks
  • More stringent laws and regulations
  • Change in customer preferences for green products
Opportunities
  • Development of low-carbon, energy-saving technologies

Reporting Standards

Frameworks Used: GRI Standards, HKEX ESG Reporting Guide, UN Sustainable Development Goals, UN Global Compact, International Integrated Reporting Framework

Certifications: ISO 14001, ISO 45001, ISO 9001, ISO 50001, ISO 27001, IECQ QC 080000, IATF 16949

Third-party Assurance: Hong Kong Quality Assurance Agency (HKQAA)

UN Sustainable Development Goals

  • Goal 8: Decent Work and Economic Growth
  • Goal 6: Clean Water and Sanitation
  • Goal 7: Affordable and Clean Energy
  • Goal 12: Responsible Consumption and Production
  • Goal 13: Climate Action
  • Goal 16: Peace, Justice and Strong Institutions

The report maps AAC's actions to specific SDG targets.

Awards & Recognition

  • Top 100 Global Innovators 2023
  • Best GRI Report – Commendation
  • Best Corporate Governance and ESG Awards
  • Best TMT Company
  • New Economy Corporate – Leadership Awards
  • Best Achievement Supplier
  • and many others listed in the report