Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainable Supply Chain
• Product Quality & Safety
• Employee Well-being
• Corporate Governance

Environmental Achievements

• Significantly improved energy efficiency and achieved energy savings in the production chain by applying clean energy, laying photovoltaic power generation devices, optimizing production processes, and renovating production equipment.
• Obtained the Ministry of Industry and Information Technology (MIIT) of China's recycling qualification for echelon utilization of batteries and have become the standardized enterprise in the comprehensive utilization industry of waste power storage batteries for new energy vehicles.
• Successfully processed over 9,000 tons of related valuable waste materials at Wenzhou base.
• NMP recovery rate of over 99.7%.

Social Achievements

• Established a multi-faceted communication platform to engage positive, transparent, and effective communication with investors and to comprehensively improve information disclosure.
• Provided safety training to all employees and conduct safety audits during daily operations.
• Public welfare actions including promoting local development, educational equity, and focusing on special populations.
• 100% labor contract signing rate.
• 100% resolution rate of customer complaints.

Governance Achievements

• Successfully listed on the Hong Kong Stock Exchange (00666.HK).
• Established a three-tier ESG governance structure consisting of “the Board, ESG Committee, and ESG Management Committee”.
• Conducted four anti-bribery and anti-corruption audits.
• Organized 6 special training sessions on business ethics for our employees, with a total of 8,838 attendees.

Climate Goals & Targets

Environmental Challenges

• Transformation of the global energy structure
• Rapid development of new energy vehicles
• Fluctuating raw material prices
• Extreme weather conditions causing supply chain disruptions
• Global warming and water scarcity
• Increasing regulatory compliance requirements
• Reputational damage due to negative climate events

Mitigation Strategies

• Formulated risk management policies that cover various types of risks.
• Integrated ESG into the Company's strategic planning and daily operation.
• Contingency plans for extreme weather.
• Improving energy utilization rate and reducing carbon dioxide emissions.
• Purchasing energy-efficient power equipment.
• Assessing the impact of local and global climate change regulations.
• Analyzing possible changes in environmental taxes or subsidies.
• Timely and transparent information disclosure.
• Participation in social programs and environmental initiatives.

Supply Chain Management

Supplier Audits: 757 suppliers audited in 2023

Responsible Procurement

• Code of conduct
• Supplier sustainability requirements
• Conflict-free metal declarations
• Sunshine Agreement

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Floods

Transition Risks

• Regulatory changes

Opportunities

• Growing demand for EVs and renewable energy
• Technological innovations

Reporting Standards

Frameworks Used: GRI Standards, TCFD recommendations

Certifications: ISO 14001, ISO 50001, ISO 27001, ISO 9001, IATF16949, ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Wending battery
• Large-cylinder batteries
• Super-fast charging batteries
• Semi-solid-state batteries

Awards & Recognition

• Global Tier 1 Energy Storage Supplier (Bloomberg)
• Green Factory of Zhejiang Province
• Various other awards listed in the report