Climate Change Data

Environmental Metrics

ESG Focus Areas

• Carbon emission reduction, recycling and re-commercialization
• Industry self-discipline, employee development and social welfare
• Top-level governance and information security management

Environmental Achievements

• Responsibly re-commercialized over 23 million pre-owned consumer electronics
• Reduced electronics pollution by 36.1 tonnes
• Dismantled 225,000 devices eco-friendly

Social Achievements

• Launched Listener Program with 100% resolution rate of 582 issues
• Provided RMB2 million fund for interest-free housing loans
• Empowered over 100,000 small- and medium-sized merchants

Governance Achievements

• Established a three-tier architecture for ESG management
• Established an anonymous reporting mechanism for misconduct
• Passed Level 3 assessment under China's Multi-Level Protection Scheme and ISO 27001 certification

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations and supply chains
• Data safety and user privacy concerns
• Potential cybersecurity risks

Mitigation Strategies

• Activated emergency plan for pandemic prevention and established public welfare program
• Improved hygiene standards for courier staff and sanitized workplaces
• Developed independent data erasing solutions (AiQingChu), established comprehensive information security and privacy management system

Supply Chain Management

Responsible Procurement

• AiHuiShou Sustainable Procurement Policy
• Preferential purchase of sustainable products
• Supplier code of conduct
• Comprehensive appraisal in sustainability performance

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, SASB, MSCI, Sustainalytics

Certifications: ISO 27001

Sustainable Products & Innovation

• AiQingChu data erasing system
• Device Hero intelligent inspection tool

Awards & Recognition

• 2021 20 Most Socially Influential Startups in China
• 2019 Hurun China Top 500 Private Enterprises
• 2019 Hurun Global Unicorn List - #138
• 2019 Venture50 Most Influential Mobile Internet Enterprise
• China's Business Innovation Organization of the Year
• 2019 China's 50 Most Innovative Companies - Consumer Sector
• 2020 Top 100 Most Competitive Enterprises & Most Influential Enterprises
• 2020 Charity List of Chinese Internet Companies Battling COVID-19 – Top 100 Influencers
• 2019 Best Internet/Mobile Internet Investment Case in China's Internet Industry
• WISE King of New Economy – King of New Leasing & Second-hand Economy Unicorn in China's New Consumer Industry

Environmental Metrics

ESG Focus Areas

• Climate Change
• Green Industry
• Circular Economy
• Product Quality Control
• Supply Chain Management
• Customer Service
• Innovation
• Employee Development
• Social Responsibility
• Corporate Governance
• Information Security
• Risk Management

Environmental Achievements

• Reduced greenhouse gas emissions by 463,692 metric tons in 2021 through re-commercializing pre-owned phones (equivalent to the carbon sink of 2.3 million mu of urban forests).
• Responsibly disposed of 223,000 devices in 2021, reducing 35.7 metric tons of e-waste.
• Greenhouse gas emission intensity (Scope1+Scope2) decreased by 28.8% year-on-year to 0.37 Tonne CO2e/RMB1,000,000.

Social Achievements

• Donated RMB 5.05 million to participate in flood rescue in Henan Province.
• Supported 52 schools, provided educational resources to more than 9,840 children in mountain villages, and delivered 2,952 sessions through "AHS Charity and Love·Digital Education Aid Program for Rural Children".
• Average training hours per employee was 8 hours.

Governance Achievements

• Established a three-level ESG management structure.
• Held 7 Risk Management Committee (RMC) meetings to discuss 23 risk issues.
• Passed the Level 3 assessment under China's Multi-Level Protection Scheme and obtained ISO 27001 information security management system certification.
• Developed the Seraph Program, an anti-spider decision-making system, reducing malicious requests from 35.5% to 0.12%.

Climate Goals & Targets

Environmental Challenges

• Repeated outbreaks of COVID-19, extreme weather and natural disasters presented new risks and challenges.
• Supply chain disruptions due to COVID-19 policies.
• Climate change risks (physical risks like extreme weather and transition risks like policy changes).

Mitigation Strategies

• Developed alternative sourcing strategies and flexible operation models (e.g., city-level operation stations).
• Implemented a sound risk management system and internal control systems.
• Introduced the TCFD framework to identify climate change risks and opportunities.

Supply Chain Management

Responsible Procurement

• Formulated ATRenew Procurement Policy and Aihuishou Sustainable Procurement Policy.
• Suppliers are required to provide products that are friendly and harmless to the environment.
• Selecting green and environmentally friendly materials for office decoration.
• Prioritizing the procurement and use of energy-saving, water-saving and material-saving raw materials, products and services.

Climate-Related Risks & Opportunities

Physical Risks

• Acute risks caused by climate change (e.g., hurricanes and rainstorms), which may damage the Company’s assets and affect business continuity.
• Extreme weather will also prolong the inventory turnover time.

Transition Risks

• Additional operating costs brought by policy change; Reputation damage and loss of users due to being unable to effectively control or reduce the carbon emissions.

Opportunities

• Investors tend to invest in green industries and projects with a positive impact on climate change.
• With the gradual maturity of carbon asset policy and the trading market, CCER and other projects can bring more additional benefits to ATRenew.

Reporting Standards

Frameworks Used: GRI Standards, TCFD, SASB

Certifications: ISO 14001, ISO 27001

Sustainable Products & Innovation

• Matrix 2.0 automated quality inspection system
• Camera Box 3.0 intelligent device
• Device Hero portable inspection tool

Awards & Recognition

• Top 100 Enterprises in Yangpu District
• Annual Social Responsibility Excellence Award
• The 20 Most Socially Influential Startups in China
• Baoshan District Advanced Collective
• Annual Economic Work Science and Technology Innovation Contribution Award
• Shanghai Specialized and Sophisticated Enterprises That Produce New and Unique Products
• The Sixth Batch of Shanghai Key Trademark Protection Lists
• Top 100 Fast-Growing Companies in Shanghai's Software and Information Technology Service Industry
• Yangpu District Enterprise Technology Center Recognition
• Shanghai Worker Pioneer
• Baoshan District Complaint Network Unit Excellent Unit for Comprehensive Evaluation of Rights Protection Work
• JDxiaozhi 618 Machine Priority Mode Best Operation
• Excellent Merchant for Pre-sales Communication
• Outstanding 618 Contribution Award
• Outstanding Merchant
• Shanghai E-commerce Demonstration Enterprise
• Best Fund Management Award in China
• Adam Smith Awards Asia
• Best Capital Market Communication Award
• Capital Market Potential Innovation Company

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy
• Corporate Governance
• Employee Well-being
• Supply Chain Management
• Information Security and Privacy Protection
• Business Ethics

Environmental Achievements

• Reduced greenhouse gas emission intensity (Scope 1+Scope 2) by 18.9% year-on-year to 0.30 tonnes CO2e/RMB million revenues.
• Responsibly recycled and disposed of 270,000 units of used and waste electronic devices, reducing 43.2 metric tons of e-waste.

Social Achievements

• Donated RMB 1,000,000 to support public welfare programs.
• Provided specialized training for 8,047 PJT Marketplace merchants.
• Average training hours per employee was 8.

Governance Achievements

• Reduced total number of accidents by about 40% compared to 2021.
• Reduced operating errors by about 60% compared to 2021.
• Held 11 Risk Management Committee meetings to discuss 34 risk issues, completing 27 rectification projects (79% rectification rate).

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the epidemic.
• Climate-related risks such as extreme weather affecting business continuity and inventory turnover.
• Transition risks from policy changes and potential reputational damage due to carbon emissions.

Mitigation Strategies

• Focused on core business operations and improved business and service quality.
• Strengthened internal environmental supervision and collaborated with external third parties to identify and address environmental and climate management weaknesses.
• Monitored corporate operations and risks closely, adjusting business strategies based on government policies and industry trends.
• Developed and implemented a fully automated quality inspection system (“Matrix 3.0”) to improve efficiency and reduce errors.

Supply Chain Management

Responsible Procurement

• Procurement Policy of ATRenew
• ATRenew Anti-Bribery Policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather damaging assets and affecting business continuity; prolonged inventory turnover time.

Transition Risks

• Additional operating costs from policy changes; reputational damage and loss of users due to carbon emissions.

Opportunities

• Investment opportunities in green industries; additional benefits from CCER projects.

Reporting Standards

Frameworks Used: TCFD, GRI Standards, SASB

Certifications: ISO 14001, ISO 9001

Sustainable Products & Innovation

• Device Hero
• Matrix 3.0
• Camera Box 3.0
• Tianyan X-Ray system

Awards & Recognition

• WISE2022 King of the New Economy - Enterprise of the Year
• 36Kr 2022 China Charity Model of the Year
• China Philanthropy Times 2022 Shanghai Labor Day Award
• Shanghai Federation of Trade Unions For Good Awards
• China Social Enterprise and Impact Investing Forum “High Energy Team Award”
• Harvard Business Review ESG “Low-risk” Rating
• Sustainalytics 2020-2021 Green China·Person of the Year Nominee
• Ministry of Ecology and Environment ESG Value Chain of the Year Excellent Enterprise Finalist
• ESG China Awards Investor Relations ESG Engagement and Communication of the Year Excellent Enterprise on the Finalist
• ESG China Awards Special Contribution to Poverty Alleviation
• China Foundation for Poverty Alleviation

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy
• Corporate Governance
• Employee Well-being
• Supply Chain Responsibility
• Information Security and Privacy

Environmental Achievements

• Scope 1 and Scope 2 greenhouse gas emissions intensity decreased by about 6.67% compared with 2022
• Green disposal of a total of 111,700 units of equipment in 2023, reducing e-waste pollution by 17.83 tonnes
• Reduced the use of sealing bags by more than 1,180,000

Social Achievements

• Overall employee satisfaction rate increased by about 4.5 percent
• Proportion of female senior management rising from 22.58% in 2022 to 28.13% in 2023
• Value of education donations in kind in 2023: RMB 100,000
• Paipai Marketplace merchants receiving training: 2,186, and average training hours: 4
• PJT Marketplace merchants receiving training: 5,621, and average training hours: 7.5

Governance Achievements

• Joined the United Nations Global Compact (UNGC)
• Improved ESG governance system by clarifying the responsibilities of the ESG Committee and the ESG Working Group
• 100% rectification rate for deficiencies identified in the SOX internal control project
• No corruption lawsuits in 2023

Climate Goals & Targets

Environmental Challenges

• Climate change risks (physical and transition)
• Supply chain disruptions due to extreme weather
• Intense market competition in the pre-owned and circular economy market
• Stringent government regulations on climate change, green packaging, and data center energy management

Mitigation Strategies

• Adopted the NGFS framework to analyze and manage climate change risks and opportunities
• Developed alternative sourcing strategies and diversified supply chains
• Implemented energy-saving technologies and equipment
• Developed comprehensive emergency management plans
• Strengthened research and development in automation technology
• Continuously monitored regulatory policies and updated climate change action management plans
• Incorporated climate risks into public opinion monitoring

Supply Chain Management

Responsible Procurement

• Procurement Policy of ATRenew
• ATRenew Anti-Bribery Policy
• Supplier access qualification reviews
• Comprehensive assessments of suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme heat
• Wildfires
• Extreme cold
• Floods
• Tropical cyclones

Transition Risks

• Policy and law changes
• Technological advancements
• Market shifts
• Reputational risks

Opportunities

• Development of energy-efficient products and services
• Green financing opportunities
• Carbon asset development and trading
• International market development

Reporting Standards

Frameworks Used: TCFD, GRI Standards, SASB

Certifications: ISO 14001, ISO 27001, ISO 9001

Sustainable Products & Innovation

• RPET backpacks
• Coffee grounds cups
• DuPont paper computer bags
• Concrete wireless chargers
• Cooling tech cloth masks

Awards & Recognition

• "Highly Commended" by Reuters Responsible Business Awards 2023
• The 2nd Xinhua Credit Jinlan Cup "Excellent Case of ESG Practices"
• "King's Boat - Favourite Talent Employer" by BOSS Zhipin