Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Operations and Compliance
• Caring for Employees
• Virtuous Innovation
• Ecosystem Engagement

Environmental Achievements

• Launched a PV solar power project expected to provide up to 5 gigawatt-hours (GWh) per year and cut emissions by 2,905 tCO2e per year.
• Upgraded cooling units to save up to 1.03 gigawatt-hours of electricity and cut emissions by 598 tCO2e per year.
• Upgraded factory lighting to save 2.02 GWh of electricity and cut emissions by 1,171 tCO2e per year.
• Recycled 195 tons of devices through the OPPO Trade-in program.
• OPPO AndesBrain (Binhaiwan Bay) Data Center uses 100% renewable energy, saving 3,600 tCO2e per year.

Social Achievements

• Launched the OPPO Inspiration Challenge, receiving 536 proposals from 39 countries.
• Invested CNY 24.6 million in employee training, averaging 26.5 hours per employee.
• Partnered with the Little Dolphins Hearing Impaired Children's Choir.
• Donated approximately CNY 14 million to various educational funds and charities.
• Worked with AiScope to use smartphones for infectious disease diagnosis in underserved areas.

Governance Achievements

• 100% of employees have been communicated and trained for the Code of Business Conduct and Compliance Red Lines.
• 100% of employees in key positions have signed a commitment to compliance.
• Established a “Carbon Neutrality Working Tem” responsible for driving the implementation of the company’s low-carbon strategies.
• Launched an official legal compliance website for reporting non-compliant conduct.
• Implemented a comprehensive compliance management system covering various areas like anti-bribery, anti-trust, data privacy, etc.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the pandemic.
• Complexity of global trade and increasing uncertainty.
• Managing risks in the global supply chain (over 200 potential risks identified).
• Scope 3 emissions (70% or more of greenhouse gas emissions arise from the extraction of raw materials and the supply phase).

Mitigation Strategies

• Developed diversified supply plans and secured supplies of core materials.
• Improved supply chain risk control mechanisms.
• Implemented business continuity systems covering R&D to post-sales.
• Developed a global carbon audit mechanism and conducted a global inventory of greenhouse gas emissions.
• Developed a carbon emission data platform for cloud resources and issued Carbon Emission Bills to customers.

Supply Chain Management

Supplier Audits: 91% of suppliers onsite in 2022

Responsible Procurement

• OPPO Supplier CSR Code of Conduct
• Zero tolerance for child labor, forced labor, and corruption
• Supplier risk assessment and auditing
• CSR capability building for suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, UN Sustainable Development Goals, UN Global Compact, ISO 26000

Certifications: ISO 14001, ISO 45001, ISO 27001, ISO 27701, ISO 27018, PCI DSS, CSA STAR

Third-party Assurance: Bureau Veritas Certification (Beijing) Co., Ltd.

Sustainable Products & Innovation

• OPPO Find N2 (reduced weight using high refractive index coatings and high-strength PEEK materials)
• OPPO 5G CPE T2 (using PCR plastics)

Awards & Recognition

• ESG Innovator at Harvard Business Review China's 2022 New Growth summit
• GLOMO Award for Disruptive Device Innovation (OPPO Find N)
• iF Design Awards (OPPO Find N, OPPO Find X5, OPPO 5G CPE T2, OPPO Air Glass)
• Red Dot Award (ColorOS 12 features)
• Consumer Tech Innovation Award (OPPO SUPERVOOC)
• Eight prizes at CVPR 2022
• Impact Award at BEYOND Expo 2022 (OPPO Inspiration Challenge)

Environmental Metrics

ESG Focus Areas

• Operations and Compliance
• Environmental Protection
• Caring for Employees
• Virtuous Innovation
• Ecosystem Engagement

Environmental Achievements

• Total GHG emissions (Scope 1 and 2) of OPPO global operations in 2023 294,192.86 tons CO2e, reduced by 6.48% compared to 2022
• Renewable energy use over 20.41 million kWh
• E-waste disposed in compliance with laws and regulations through the OPPO Trade-in program 198 tons
• Compliance rate of pollutant discharge 100%
• Reduced 1,140 tons of CO2e through upgrade of lighting systems
• Reduced 8,947.86 tons of CO2e via upgrade of key energy-consuming equipment
• Reduced approximately 2,819 tons of CO2e per year from solar PV power project
• OPPO Cloud helps achieve an annual reduction of 1,800 tons of CO2e

Social Achievements

• Annual charitable donations RMB 23.31 million
• Percentage of employees covered by training 100%
• Average hours of training per employee 27.3 hours
• Total investment in training in 2023 RMB 15.43 million
• Percentage of employees with formal contract and social insurance contributions 100%
• Number of work-related deaths 0
• Number of occupational disease incidents 0
• Number of employees taking childcare leave 3,644

Governance Achievements

• 100% of employees at high-risk key positions have signed the Compliance Pledge
• 100% of operation sites are covered by anti-corruption risk assessment
• Data Security Management (DSM) certification granted in accordance with GB/T 41479-2022
• 100% of employees are covered by anti-corruption training
• Percentage of suppliers committing to our CSR standards 100%
• Percentage of suppliers on which OPPO conducted CSR audits onsite 100%
• Percentage of suppliers committing to zero use of conflict minerals 100%

Climate Goals & Targets

Environmental Challenges

• Increased compliance costs due to stricter carbon emission regulations
• Increased costs from developing new decarbonization technologies
• Products lagging behind industry standards due to failure to adopt low-carbon technologies
• Market share impacted by consumer preference for eco-friendly products
• Underperforming in addressing climate change could undermine the Company’s image
• Production and operations disruptions from extreme weather events
• Challenges to long-term business operations due to climate anomalies

Mitigation Strategies

• Closely monitor climate-related policies and reinforce internal compliance mechanisms
• Institute a robust greenhouse gas inventory mechanism and enhance data disclosure quality
• Plan investments judiciously when introducing new low-carbon technologies
• Boost R&D capabilities and explore low-carbon technology integration
• Roll out green and sustainable offerings
• Ramp up efforts to identify and manage climate risks and enhance market reputation
• Formulate emergency plans for extreme weather events and fortify facility resilience
• Strategically plan site selection and construction, factoring in chronic climate risks
• Transform production sites into eco-friendly ones and integrate sustainable development concepts into product lifecycle management

Supply Chain Management

Supplier Audits: 272 suppliers in 2023

Responsible Procurement

• OPPO Supplier CSR Code of Conduct
• CSR risk assessment for potential suppliers
• Regular audits and reviews of existing suppliers based on risk level
• Zero tolerance policy for incidents breaching CSR red lines

Climate-Related Risks & Opportunities

Physical Risks

• Extreme natural disasters (heatwaves, floods, hurricanes)
• Climate anomalies (global warming, rising sea levels)

Transition Risks

• Increased compliance costs due to stricter carbon emission regulations
• Increased costs from developing new decarbonization technologies
• Market shifts towards eco-friendly products

Opportunities

• Reduced operational costs from embracing renewable energy
• Sustainable, efficient, and low-carbon growth from energy-efficient technologies
• New market avenues from designing and developing green products

Reporting Standards

Frameworks Used: GRI Standards, UNGC Ten Principles, UN SDGs, ISO 26000:2010

Certifications: ISO 9001, TL 9000, QC 080000, ANSI/ESD, ISO 17025, ISO 22301, ISO 14001, ISO 45001, ISO 27001, ISO 27701, ISO 27018, CSA STAR, PCI DSS, GB/T 41479-2022 Data Security Management (DSM), ISO 37001 Anti-Bribery Management System

Third-party Assurance: Bureau Veritas Certification (Beijing) Co., Ltd.

UN Sustainable Development Goals

• Not disclosed

The report mentions alignment with the UN SDGs but doesn't specify which goals.

Sustainable Products & Innovation

• Battery Health Engine
• Green data center
• Eco-friendly products and packaging

Awards & Recognition

• TIME's List of Best Inventions of 2023 (Zero-Power Tag)
• Best Smartphone Award at the 2023 Asia Mobile Awards (Find N2)
• 2023 SEAL Sustainable Product Award (Battery Health Engine)
• Silver at the 2023 Edison Best New Product Awards (Air Glass)
• iF Design Awards
• Red Dot Award
• One of the 10 “Most Innovative Asia-Pacific Companies of 2023”
• Responsible Enterprise of 2023
• People's Corporate Social Responsibility: Green Development Award Silver Medal
• EcoVadis 2023 ESG Excellent Cases of Chinese Enterprises
• Pioneer Technology Companies 2023: Annual Innovation Enterprises
• Outstanding Contribution Award by the Connectivity Standards Alliance Member Group China (CMGC)
• 3GPP Excellence Award