Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Resource Consumption
• Product Liability
• Supplier Management
• Human Resources
• Occupational Health and Safety
• Anti-corruption
• Community Investment

Environmental Achievements

• Reduced Nitrogen Oxides (NOX) emissions from 7,444.61 kg to 4,391.93 kg
• Reduced Sulphur Oxides (SOX) emissions from 19.85 kg to 12.56 kg
• Reduced Particulate Matter (PM) emissions from 187.66 kg to 113.58 kg
• Installed distributed solar power systems with an installed capacity of approximately 41,000 kilowatts, generating 38,100,000 kWh in 2019
• Improved energy use efficiency through centralized oil supply and centralized fluid delivery systems, resulting in significant savings of water and oil consumption.
• Implemented various emission control measures, including centralized filtration, scrubbing, electrostatic adsorption, and a highly efficient odour treatment system.

Social Achievements

• Maintained customer satisfaction at 88% in 2019
• Provided training to 77% of male employees and 75% of general and technical staff, with an average of 32.04 and 32.49 training hours per employee respectively.
• Provided training to 100% of senior and middle-level management, with an average of 19.24 training hours per employee.
• Provided training to 60% of female employees, with an average of 27.10 training hours per employee.
• Launched an online learning platform, “NGC Academy”, to facilitate employee training.

Governance Achievements

• Formulated the “Procurement Compliance and Management System” to ensure fairness and impartiality in supplier selection and prevent corruption.
• Provided compliance trainings for relevant employees and incorporated their performances into the appraisal scope.
• Formulated the “Anti-Fraud Whistleblowing Management Procedures” to protect whistleblowers and promote transparency.

Climate Goals & Targets

Environmental Challenges

• Reducing environmental impact of daily operations
• Ensuring safe and stable operation of products
• Managing environmental and social risks of the supply chain
• Maintaining high standards of occupational health and safety
• Preventing corruption

Mitigation Strategies

• Implemented various environmental protection measures to minimize the impact of daily operations on the environment.
• Established a standardized management system (ISO9001) and adopted management models such as VDA6.3 Process Audit, RCA, and FMEA.
• Categorized and managed suppliers based on importance, duration of supply, and performance scores.
• Formulated the Occupational Health and Safety Management Manual and implemented various safety measures.
• Formulated the “Procurement Compliance and Management System” and provided anti-corruption trainings.

Supply Chain Management

Supplier Audits: Monthly and annual assessments conducted for 154 major suppliers

Responsible Procurement

• Environment and Safety Notice Commitment
• Regulations on the EHS Management of Suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide

Certifications: ISO14001, OHSAS18001, ISO9001

Awards & Recognition

• Industrial Enterprise with AA Level Quality and Credit in Jiangsu Province in 2019
• National Model Enterprise of Technology Innovation
• Jiangsu Provincial Enterprise Technology Center
• State-Certified Enterprise Technology Center
• National Advanced Company in the Machinery Industry
• Top Ten Outstanding Product (3.X MW platform products)
• Top Ten Outstanding Enterprise of the Award for the Top 50 of China Wind Power Industry 2019

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Sustainable development
• Employee well-being
• Customer satisfaction
• Supply chain management
• Dual carbon goals

Environmental Achievements

• Complied with relevant PRC laws and regulations relating to environmental protection.
• Operated and implemented the relevant requirements of ISO14001 environment management system and ISO50001 energy management system.
• Discharge and disposal of various types of waste met the requirements of relevant environmental protection authority.
• Nanjing High Speed has obtained the ISO14001 environment management system certification every year since 2008.

Social Achievements

• Maintained a low employee turnover rate.
• Provided employees with fair, reasonable and competitive remuneration.
• Established a clear position system which provides different directions for vocational development.
• Conducted annual customer satisfaction surveys for more than ten consecutive years.
• Customer satisfaction of gear transmission equipment business surpassed annual target.

Governance Achievements

• Complied with the requirements of the Companies Ordinance, the Listing Rules and the Securities and Futures Ordinance.
• Adopted the Model Code for Securities Transactions by Directors of Listed Issuers.
• Established an audit committee, remuneration committee, and nomination committee.

Climate Goals & Targets

Environmental Challenges

• Decreased sales price and increased costs of wind and industrial gear transmission equipment.
• Fierce price war and a substantial decrease in the price of wind turbines.
• Continuous price competition in the wind turbine manufacturing industry.
• Risk of foreign exchange rate fluctuation and interest rate risk.

Mitigation Strategies

• Actively managing the net amount of foreign currency assets and liabilities to reduce its exposures to exchange rate risks.
• Strive to reduce the finance costs by actively monitoring the changes in credit policies, taking pre-emptive actions, strengthening capital management and widening financing channels.
• Adhering to its green development strategy in terms of its business in industrial gear transmission equipment segment.
• Promoting and improving the “standardized, modularized and serialized ” product system.
• Exploring in-depth research on new transmission technology.

Supply Chain Management

Supplier Audits: Monthly and annual basis

Responsible Procurement

• Supplier classification management
• Comprehensive assessment on quality, cost, logistics and service

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Appendix 27 to the Rules Governing the Listing of Securities on the Hong Kong Stock Exchange

Certifications: ISO9001:2015, ISO14001:2015, ISO45001:2018, ISO10012:2003, ISO50001:2018, GB/T23001-2017, ISO/IEC17025, TPG

Third-party Assurance: Baker Tilly Hong Kong Limited

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Sustainable development
• Green development
• Carbon peak and carbon neutrality
• Employee well-being

Environmental Achievements

• Nanjing High Speed awarded the title of “Nanjing Environmental Protection Demonstration Enterprise” and passed the certification of “Jiangsu Green Factory” in 2023.
• Nanjing High Accurate certified as “Jiangsu Green Factory” in 2023.

Social Achievements

• Maintained a low employee turnover rate compared to other manufacturing companies.
• Provided employees with fair, reasonable, and competitive remuneration.
• Established a clear position system providing different directions for vocational development.
• Conducted annual customer satisfaction surveys for more than ten consecutive years.

Governance Achievements

• Complied with the requirements of the Companies Ordinance, the Listing Rules, and the Securities and Futures Ordinance.
• Adopted the Model Code for Securities Transactions by Directors of Listed Issuers.
• Established an audit committee, remuneration committee, and nomination committee.

Climate Goals & Targets

Environmental Challenges

• Price wars and accelerated iteration of large-scale wind turbines in the wind power industry.
• Compressed profit margins of wind turbine products.
• Increased investment required for upgrading and transforming ancillary equipment and test platforms for large-megawatt wind gearboxes.
• Potential pressure on after-sale maintenance costs.
• Market uncertainties in the commodity trading business.

Mitigation Strategies

• Continued investment in R&D to provide a full range of wind power gear transmission products.
• Promoting and improving the “standardized, modularized, and serialized” product system.
• Developing an “integrated, intelligent, and digital” driving product system.
• Strengthening risk prevention against market uncertainties in the trading business.
• Improving product quality and economies of scale while enhancing market penetration.

Supply Chain Management

Responsible Procurement

• Supplier classification management based on business importance, years of supply, and performance evaluation.

Climate-Related Risks & Opportunities

Reporting Standards

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

Certifications: ISO 14001, ISO 50001, ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, ISO 10012:2003, ISO 50001:2018, GB/T 23001-2017, ISO/IEC 17025:2017 CNAS, TPG special process, CMMI Level 3, CCS, CGC, CQC, TÜV, DNV GL, UL, European Union’s CE, ETL, European Union’s CE, Mining Products Safety Approval and Certification Center (MA), ATEX, CUTR, GOST, API Q1, ISO/TS 22163, CRCC, IRIS

Awards & Recognition

• Jiangsu Governor Quality Award
• Nanjing Mayor Quality Award
• Jiangsu Quality and Credit Graded AAA enterprise
• Jiangsu Boutique
• Jiangsu Green Factory
• Excellent Entrepreneur of Jiangsu Province
• Jiangsu Economic Think Tank Enterprise Expert