Climate Change Data

Environmental Metrics

ESG Focus Areas

• anti-corruption
• supplier management
• product responsibility

Environmental Achievements

• Reduced greenhouse gas emissions by 1,517.49 tonnes compared to 2019 (16,079.01 tonnes in 2019 vs 14,561.52 tonnes in 2020).
• Reduced diesel consumption by 43% compared to 2019.
• Reduced electricity consumption by 9% compared to 2019.

Social Achievements

• Employee turnover rate at 0% (2019: 0.99%).
• 228 employees received 468 hours of training (2019: 493 employees, 1104 hours).

Governance Achievements

• No bribery or corruption cases reported.
• No intellectual property rights complaints received.

Climate Goals & Targets

Environmental Challenges

• Waste management
• Health and safety

Mitigation Strategies

• Investment in environmental pollution control systems and equipment.
• Implementation of strict rules and measures for waste management.
• Continuous monitoring and management procedures.
• Comprehensive environmental management system with periodic reviews and continuous improvements.
• Employee training on environmental awareness and technical skills.
• Cooperation with suppliers and business partners on environmental protection.

Supply Chain Management

Supplier Audits: Strict assessments conducted on suppliers.

Responsible Procurement

• QPL’s Conflict Metals Policy
• EICC-GeSI Conflict-free Smelter Program

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Emissions
• Use of Resources
• Employment
• Health and Safety
• Training and Development
• Supply Chain Management
• Product Responsibility
• Anti-corruption

Environmental Achievements

• Awarded ISO14001:2015, IECQ-HLCIE 09.0016, IATF16949:2016, and ISO9001:2015 certifications.
• Invested RMB 6.4 million in environmental pollution control systems and equipment.

Social Achievements

• No material non-compliance with employment laws and regulations reported.
• No accidents resulting in death or serious injury reported.
• 350 employees received 1,072 hours of training (average 1.1 hours per employee).

Governance Achievements

• Established internal policies to prevent bribery and corruption.
• Implemented “Products and Services Related Complaints Handling Guide – QSG 3004” to deal with customer complaints.

Climate Goals & Targets

Environmental Challenges

• Waste management and health and safety identified as major ESG risks.
• Increased frequency and severity of extreme weather events.
• Potential for power rationing and increased compliance costs.
• Risks associated with transitioning to a low-carbon economy.

Mitigation Strategies

• Continuous investment in environmental pollution control systems.
• Implementation of strict rules and measures for waste management.
• Exploration of alternative energy sources and energy efficiency improvements.
• Development of emerging technologies for climate change mitigation.

Supply Chain Management

Responsible Procurement

• Material procurement management system and supplier management system
• Compliance with “QPL’s Conflict Metals Policy” and “EICC-Ge SI Conflict-free Smelter Program”

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (typhoons, storms, heavy rains, heatwave)

Transition Risks

• Power rationing
• Increased compliance costs
• Technological transformation costs
• Increased operating costs

Opportunities

• Use of alternative energy
• Energy efficiency improvements

Reporting Standards

Frameworks Used: Environmental, Social and Governance Reporting Guide (Appendix 27 of the Rules Governing the Listing of Securities on the Main Board of The Stock Exchange of Hong Kong Limited)

Certifications: ISO 14001:2015, IECQ-HLCIE 09.0016, IATF16949:2016, ISO 9001:2015

Environmental Metrics

ESG Focus Areas

• Emissions
• Waste management
• Health and safety
• Supply chain management
• Employee welfare
• Anti-corruption

Environmental Achievements

• Achieved ISO14001:2015, IECQ-HLCIE 09.0016, IATF16949:2016, and ISO9001:2015 certifications.
• Invested RMB 6.4 million in environmental pollution control systems and equipment.
• Implemented 3R (Reduce, Recycle, Reuse) principle for resource management.

Social Achievements

• Complied with all relevant employment laws and regulations.
• Provided group hospitalization insurance and outpatient medical plans to employees.
• Conducted 796 hours of training for 260 employees.

Governance Achievements

• Established an ESG Working Group.
• Implemented a whistle-blowing policy and procedures.
• Recorded zero corruption cases and no breach of anti-corruption laws.

Climate Goals & Targets

Environmental Challenges

• Waste management and health and safety identified as major ESG risks.
• Extreme weather events posing physical risks to business operations.
• Potential impacts of climate change on employees and communities.
• Potential for supply chain disruptions.

Mitigation Strategies

• Continuous investment in environmental pollution control systems.
• Implementation of contingency measures for weather-related events.
• Exploration of alternative energy sources and energy efficiency improvements.
• Strict supplier assessments to ensure compliance and sustainability.
• Implementation of green procurement policy.

Supply Chain Management

Supplier Audits: 61 major suppliers subject to supplier engagement practice

Responsible Procurement

• Strict assessments on suppliers considering cost, quality, compliance, reputation, and environmental/social responsibility.
• Green procurement policy implemented.
• Compliance with “QPL’s Conflict Metals Policy” and “EICC-Ge SI Conflict-free Smelter Program”.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events causing damage to facilities and operational disruptions.

Transition Risks

• Increased compliance costs due to policy actions.
• Technological transformation and increased operating costs in transitioning to a low-carbon economy.

Opportunities

• Use of alternative energy or enhancement of energy efficiency in operations.

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix 27 of the Rules Governing the Listing of Securities on the Main Board of The Stock Exchange of Hong Kong Limited)

Certifications: ISO 14001:2015, IECQ-HLCIE 09.0016, IATF16949:2016, ISO9001:2015

Environmental Metrics

ESG Focus Areas

• Emissions
• Waste Management
• Energy Consumption
• Water Management
• Employee Welfare
• Health and Safety
• Supply Chain Management
• Product Responsibility
• Anti-Corruption
• Community Investment

Environmental Achievements

• Achieved a 2% reduction target in the intensity of scope 1 and 2 emissions by 2032 against the 2022 baseline.
• Initiated a target of 5% reduction of hazardous waste production intensity by 2032, compared with the baseline year of 2022.
• Initiated a target of 2% reduction in energy intensity by 2032, compared with the baseline year of 2022.
• Aims at reducing water intensity in operations by 2% by 2032 against the 2022 baseline.

Social Achievements

• Honored all employment obligations, including salaries, holidays, compensation, and benefits, with no material non-compliance reported.
• No work-related fatalities or serious injuries reported in the past three years, including the reporting period.
• Provided 144 employees with 441 hours of training (average 0.6 hours per employee).

Governance Achievements

• Established whistle-blowing policy and procedures for reporting misconduct.
• No concluded legal cases regarding corrupt practices reported.

Climate Goals & Targets

Environmental Challenges

• Extreme weather events posing physical risks to facilities and operations.
• Potential for increased compliance costs due to government policies on carbon emissions.
• Risks associated with technological transformation for low-carbon energy sources.
• Managing the environmental and social risks of suppliers.

Mitigation Strategies

• Established contingency measures for weather-related events.
• Exploring opportunities for alternative energy and energy efficiency improvements.
• Monitoring energy consumption and striving to reduce greenhouse gas emissions.
• Implementing strict supplier assessments focusing on environmental and social responsibility.
• Requiring suppliers to comply with “QPL’s Conflict Metals Policy” and “EICC-Ge SI Conflict-free Smelter Program”.

Supply Chain Management

Supplier Audits: 64 major suppliers subject to supplier engagement practice.

Responsible Procurement

• Strict supplier assessments on cost, quality, compliance, reputation, and environmental/social responsibility.
• Green procurement policy.
• Requiring suppliers to comply with “QPL’s Conflict Metals Policy” and “EICC-Ge SI Conflict-free Smelter Program”.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (typhoons, storms, heavy rains, heatwaves) causing damage and operational disruptions.

Transition Risks

• Increased compliance costs due to government policies on carbon emissions.
• Risks associated with technological transformation for low-carbon energy sources.

Opportunities

• Using alternative energy or enhancing energy efficiency in operations.

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix C2 to the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited)

Certifications: IECQ Certificate of Conformity – Hazardous Substance Process Management – IECQ-H LCIE 09.0016, CQC Environmental Management System Certificate – ISO 14001: 2015, Quality Management System – IATF16949:2016, ISO9001:2015