Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employment and Labour Management
• Operating Practices
• Community Investment
• Information Security and Personal Data Protection

Environmental Achievements

• Reduced emissions of pollutants such as waste acid, acid mist, lead fumes, and volatile organic compounds.
• Increased use of clean energy to reduce pollution from coal-fired power supply.
• Automated equipment to reduce waste production such as lead slag and scrapped electrodes.
• Reduced emission intensity of lead-acid battery production by around 41%.

Social Achievements

• Successfully achieved third-party certifications such as SA8000 for social accountability management system.
• Provided monetary benefits beyond legal requirements to employees with serious illnesses or accidents.
• Conducted 16,353 employee safety trainings totaling 77,985 hours.

Governance Achievements

• Formulated “Recruitment Management Rules” to define fair and equitable recruitment standards.
• Established a whistle-blowing procedure for reporting corruption and other misconduct.
• Maintained accurate financial accounts through independent audits.

Climate Goals & Targets

Environmental Challenges

• Energy supply tensions and surging logistics costs due to the Russia-Ukraine conflict, disrupting global production capacity and causing imbalances in supply chains and challenges in the supply of raw materials.

Mitigation Strategies

• Strengthening strategic cooperation with high-quality suppliers and exploring new supplier partnerships for flexible raw material supply.
• Regularly evaluating the competitiveness of core products and establishing a stable customer network with reliable supply channels.
• Developing contingency plans to address potential risks from extreme weather events.

Supply Chain Management

Supplier Audits: Over 150 existing suppliers and over 160 new suppliers assessed in 2022.

Responsible Procurement

• Supplier selection criteria based on product quality, on-time delivery, coordination, technological innovation, environmental protection, and social responsibility.
• Requirement for key material suppliers to sign environmental protection and social responsibility agreements.
• Local procurement policy to reduce greenhouse gas emissions from transportation.

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Heat waves
• Water scarcity

Transition Risks

• Supply chain disruptions due to material shortages or price increases.

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Hong Kong Stock Exchange's Environmental, Social and Governance Reporting Guide

Certifications: ISO 14001, ISO 45001, ISO 50001, SA8000, QC080000, IATF16949, GB/T29490:2013

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• China National Intellectual Property Award
• Anhui Provincial Patent Excellence Award
• National Intellectual Property Demonstration Enterprise

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employment and Labour Management
• Operating Practices
• Community Investment
• Prevention of Child and Forced Labour

Environmental Achievements

• Reduced waste acid emission by approximately 430 tonnes (Anhui Uplus) and 290 tonnes (Jiangsu) through waste acid recycling.
• Reduced lead fume emission by approximately 25% in Zhaoqing factory by introducing sealed and automated production equipment.
• Reduced VOC emission in lithium-ion battery manufacturing by installing organic solvent recycling devices.
• Saved approximately 960 tonnes of standard coal annually by using light alkane gas in welding process (lead-acid battery manufacturing).
• Saved approximately 18,000 cubic meters of fresh water annually in Anhui factory through wastewater reuse.
• Saved approximately 21,000 cubic meters of fresh water annually in Anhui factory through water recycling in recharging process.
• Solar power generation exceeded 3.4 million kilowatt-hours annually in Jiangsu factory.

Social Achievements

• Successfully achieved SA8000 certification in lead-acid battery factories.
• Monthly average employee turnover rate reduced to 5.57% in 2023, a decrease of approximately 4.6% compared to the previous year.
• No occupational disease cases diagnosed among 10,936 employees who underwent health checkups.
• 12,749 employees participated in safety training, totaling 143,516 training hours.

Governance Achievements

• Established a “Battery Ecological Environment Construction Committee” to strengthen ecological environment protection and management.
• Formulated “Business Ethics Control Procedure” and “Anti-Corruption Procedure”, requiring employees and suppliers to sign integrity agreements.
• No significant legal non-compliance or complaints related to corruption or integrity issues were identified through internal whistleblowing procedures.

Climate Goals & Targets

Environmental Challenges

• Emission control and customer/product-related matters are identified as material ESG topics.
• Potential risks from extreme weather events (flooding, typhoons, heat waves) and supply chain disruptions due to climate change.

Mitigation Strategies

• Established disaster risk management strategies and measures to control flood risks and prevent damage from extreme weather.
• Implemented measures to reduce greenhouse gas emissions, including increased use of clean and renewable energy.
• Developed a control system covering the entire industry chain of battery ecological operation and certification to manage carbon footprint, EU directive requirements, hazardous substances, and energy consumption.

Supply Chain Management

Supplier Audits: More than 181 existing suppliers and at least 40 new suppliers passed assessment in 2023.

Responsible Procurement

• Supplier Evaluation Procedure
• Environmental Protection Agreement
• Social Responsibility Agreement
• Social Responsibility Commitment
• Occupational Health & Safety Responsibility Commitment
• Local procurement policy

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Typhoons
• Heat waves

Transition Risks

• Supply chain disruptions
• Resource constraints

Opportunities

• Increased use of clean and renewable energy

Reporting Standards

Frameworks Used: Appendix C2 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

Certifications: ISO 14001, ISO 50001, SA8000, ISO 45001, QC 080000, IATF 16949, GB/T29490:2013

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Science and Technology Award (second prize) from China National Light Industry Council
• Outstanding Provincial Collectives on Promotion of Better Quality Development in the Yangtze River Delta region
• Zhaoqing Excellent Quality Management Team Gold Award
• Huaibei Municipal Intellectual Property Rights Advantageous Enterprise Cultivation Unit
• Huaibei Municipal High-Value Invention Patent Cultivation Project Construction Unit
• The 10th Anhui Province Patent Excellence Award