Climate Change Data

Environmental Metrics

ESG Focus Areas

• Responsible Enterprise with Integrity
• Strive for Perfection and Embrace Change
• Beautiful Minth: Environmental Protection
• Safety First: Focus on Health
• Unified Team: Love in Minth
• Bringing Hope for “Pearls”: Giving Back to the Society

Environmental Achievements

• Photovoltaic power generation of 1,249,400 kWh, saving 389.83 tons of coal and reducing carbon dioxide emissions by 1,027.04 tons.
• Anodizing process upgrade to eliminate chromium emissions.
• Chrome plating process upgrade to eliminate chromium emissions.

Social Achievements

• Funded 48 employees through the Emergency Assistance Program.
• Helped 254 students return to school through the “Hope for Pearl” project.
• Established 34 “Pearl Classes” in 20 schools, helping 1,492 dropout students return to school.

Governance Achievements

• Established a top-down ESG management system with the Board of Directors, ESG Executive Committee, and ESG Working Team.
• Zero corruption lawsuits during the reporting period.
• Implemented Supplier Integrity Reward and Punishment Regulation and Supplier Integrity Agreement to prevent corruption.

Climate Goals & Targets

Environmental Challenges

• Meeting increasingly stringent environmental protection requirements and regulations.
• Managing the health and safety risks associated with chemical handling and fire.
• Ensuring consistent and sustainable human resources management globally.

Mitigation Strategies

• Process upgrades to control emissions from the source.
• Implementation of emergency plans, drills, and safety training programs.
• Initiatives to promote HR policy consistency, information system consistency, global talent mobility, and overseas HR system support.

Supply Chain Management

Responsible Procurement

• Supplier evaluation and management mechanisms
• General Rules for Procurement
• Guidelines on Evaluation Management of New Suppliers Introduction
• Supplier Classification Management
• Supplier Performance Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide (revised December 2015)

Certifications: IATF16949 (12 subsidiaries), ISO 14001 (mentioned but not quantified)

Awards & Recognition

• Best Social Responsibility Project for the 2017 Employer Branding Creativity Awards in Greater China

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Environmental Management
• Social Responsibility

Environmental Achievements

• Photovoltaic power generation of 11,127,400 kWh, saving 3,438.36 tonnes of coal and reducing CO2 emissions by 9,391.50 tonnes
• Reduced wastewater discharge by 200,000 tonnes/year
• Reduced hazardous waste generation by 1,300 tonnes/year

Social Achievements

• Helped 440 students go back to school through the “Hope for Pearl” project
• Provided 27,444 person-time training
• Implemented “one visit at most” initiative, saving over 42,000 hours

Governance Achievements

• Signed Supplier Integrity Agreement with 100% of suppliers
• Established a three-line-of-defense risk management and internal control system
• Improved whistleblowing procedures and corruption incident monitoring

Climate Goals & Targets

Environmental Challenges

• Downturn in the Chinese automobile market and impact of US-China trade frictions

Mitigation Strategies

• Internal refinement of the Group, focusing on sustainable development and creating more value for society

Supply Chain Management

Supplier Audits: 319 suppliers certified by ISO 14001

Responsible Procurement

• General Rules for Procurement
• Supplier Classification Management
• Guidelines on Evaluation Management of New Suppliers Introduction
• Supplier Performance Management
• Supplier Integrity Agreement

Climate-Related Risks & Opportunities

Reporting Standards

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

Sustainable Products & Innovation

• Lightweight aluminum products
• Automotive intelligence products

Awards & Recognition

• Most Honored Companies by Institutional Investor
• Award for Public Welfare Practice of 2017

Environmental Metrics

ESG Focus Areas

• Environmental management
• Social responsibility
• Corporate governance
• Climate change
• Carbon emissions
• Supply chain management
• Employee development
• Community investment

Environmental Achievements

• 35 factories passed ISO 14001 Environmental Management System certification
• 2% reduction in carbon intensity in 2022
• 18.75% recycling ratio of UV paint
• Approximately 619 tonnes of hazardous waste and 13,765 tonnes of general industrial solid waste reused
• Development of ECO-ALUMIN® S series low-carbon green aluminum materials
• GRS certification for 100% of Minth in-house made modified plastic materials

Social Achievements

• 16,060 person-times total number of employees trained
• 24,090 total training hours
• 100% employee union coverage rate in China
• 0 work-related fatality
• RMB3.7241 million invested in community activities
• RMB808,000 invested in the employee emergency relief program
• 2,609 accumulated “Pearl Students” aided

Governance Achievements

• Arranging anti-corruption and integrity training for staff
• Formulated and published Minth Group’s Code of Business Ethics
• ISO 37001 Anti-bribery Management System certification completed
• Established a top-down and multi-level ESG management system

Climate Goals & Targets

Environmental Challenges

• Climate change risks (physical risks: floods, typhoons, extreme heat; transition risks: policy changes, technology costs, market shifts)
• Water resource scarcity
• Supply chain disruptions due to extreme weather
• Increased pricing of GHG emissions
• Enhanced emissions-reporting obligations
• Increased stakeholder concern or negative stakeholder feedback

Mitigation Strategies

• Emergency plans for extreme weather events
• Red Line Management Standards for chronic climate risks
• Investment in renewable energy (photovoltaic power generation)
• Development of new environmentally friendly products and materials
• Carbon trading plans
• Strengthening supply chain management
• Active disclosure of climate change-related information
• Implementation of energy saving and emission reduction strategies

Supply Chain Management

Supplier Audits: 249 new suppliers audited

Responsible Procurement

• Minth’s Supplier Management Manual
• Guidelines for Supplier Risk Management
• Guidelines for Supplier CSR Management
• Minth Group’s Suppliers’ Code of Conduct on Social Responsibility
• Guidelines for New Supplier Admittance Management
• Intellectual property confidential contracts with suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Typhoons
• Extreme heat
• Changes in precipitation patterns
• Rising sea levels
• Water shortage
• Rising mean temperatures

Transition Risks

• Policy and law changes
• Increased pricing of GHG emissions
• Enhanced emissions-reporting obligations
• Technology costs
• Market shifts
• Shifts in consumer preferences
• Increased stakeholder concern

Opportunities

• Application of recycling techniques
• Participation in carbon trading
• Use of lower-emission energy sources
• Use of new technologies
• Access to new assets and locations needing insurance coverage
• Use of incentives by public sector
• Shift in consumer preferences
• R&D and innovation
• Ability to diversify business activities

Reporting Standards

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

Certifications: ISO 14001, ISO 50001, ISO 14064, ISO 37001, IATF 16949, GRS

Third-party Assurance: Not disclosed

Sustainable Products & Innovation

• ECO-ALUMIN® S series low-carbon green aluminum materials
• Modified plastics using recycled materials
• Battery housings

Awards & Recognition

• Over 60 quality and service related awards
• Improvement Award on Climate Action (CDP)
• China Bole Value Employer
• 2021 Digital Intelligence Recruitment Innovation and Practice Award (Yonyou Dayee)
• HR Model Practice Case Studies (Gaia Academy)
• Top 20 Most Promising Youth Employer Brands 2021 (Ciwei)

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Reduced energy consumption intensity by 5% in 2023
• Installed 60 MW of distributed photovoltaic projects, with an estimated annual power generation of 88 GWH
• Achieved 100% green electricity coverage at the Serbian factory
• Developed bio-based TPV material with >30% biomass content and 30% higher carbon reduction ratio compared to petroleum-based TPV
• Developed PC+ABS material with 30% recycling rate and >25% carbon reduction ratio
• Developed ABS material with 30% recycling rate and ABS+GF8 material with 50% recycling rate, achieving >20% carbon reduction rate
• Used PP resin material with 25-30% and 50% recycling rates, achieving 30% carbon reduction rate

Social Achievements

• Not disclosed

Governance Achievements

• Established a climate governance system including Board of Directors, Sustainability Committee, Group ESG Working Council, and ESG Working Group

Climate Goals & Targets

Environmental Challenges

• Reducing Scope 3 emissions (primarily from purchased goods and services and logistics)
• Achieving operational carbon neutrality by 2040 and value chain carbon neutrality by 2050
• Managing risks related to policy, market, technology, carbon neutrality strategy, operations, and finance

Mitigation Strategies

• Formulating operational emission reduction measures centered on energy conservation, green energy, and carbon offsetting
• Formulating value chain emission reduction measures centered on green materials, green logistics, and supply chain carbon management
• Establishing a complete climate action risk management structure to identify, analyze, and report risks
• Increasing investment in R&D of low-carbon technologies and products
• Tracking development and application of emerging technologies
• Exploring cooperation opportunities in carbon emission reduction technology and climate finance

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Incorporating emission reduction requirements into supplier admission and assessment
• Promoting the acquisition and utilization of green materials (green aluminum, green steel, bio-based plastics, and recycled plastics)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events threatening production, asset security, and supply chain stability

Transition Risks

• Local regulatory requirements for emissions management
• Customer requirements
• Best industry practices
• Carbon market changes
• Commercial prospects for emission reduction technologies

Opportunities

• Development of energy-efficient products
• Growth of the zero-emission truck market
• Increased demand for green materials

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol: Corporate Accounting and Reporting Standard, Greenhouse Gas Protocol: Corporate Value Chain (Scope 3) Accounting and Reporting Standard

Certifications: ISO 14001 (100% of factories), ISO 50001 (33 factories), National Green Factory of China (3 factories), National Green Supply Chain Management Enterprise of China (3 factories), Provincial and Municipal Green Factory of China (12 factories)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• ECO-ALUMIN® green aluminum
• Bio-based TPV material
• PC+ABS material with 30% recycling rate
• ABS material with 30% recycling rate
• ABS+GF8 material with 50% recycling rate
• PP resin material with 25-30% and 50% recycling rates
• Thermoplastic composite tailgate
• Integrated aluminum alloy rear anti-collision beam

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Management
• Recycling and Circular Economy
• Environmental Management System
• Water Management
• Biodiversity Protection
• Sustainable Supply Chain
• Research and Development Innovation
• Occupational Health and Safety
• Customer Service
• Business Ethics
• Corporate Governance
• Risk Management
• Employee Rights Protection
• Opportunities in Clean Technology
• Employee Training and Development
• Information Security and Privacy Protection
• Diversity, Equity, and Inclusion
• Industry Collaboration
• Community Relations
• Charity
• Intellectual Property Management
• Supplier Quality Management

Environmental Achievements

• Reduced greenhouse gas emission intensity by 8.3% compared to 2022.
• Installed 70MW of photovoltaic power generation capacity.
• Completed development of ECO-ALUMIN®, containing at least 50% recyclable aluminum.
• Reduced hazardous waste intensity by 11% year-on-year.
• 80% of Group's factories eliminated wastewater discharge.
• 100% coverage of ISO 14001 Environmental Management System in factories.
• 6 subsidiaries certified as National Green Factory or National Green Supply Chain Management Enterprise.

Social Achievements

• 100% coverage of Business Ethic Training for employees (including all directors).
• RMB 3.447 million invested in education and community support by the Minth Foundation.
• Zero product quality recall incidents.
• Employee average training hours are 85.0 hours.
• Minth Charity Foundation provided emergency assistance and support to 41 employees globally.

Governance Achievements

• Three new members added to the Board (including two independent non-executive directors).
• Two subsidiaries obtained ISO 37001:2016 Anti-Bribery Management System certification.
• Committed to Board diversity (the ratio of female directors on the Board reached 44.4%).
• 100% coverage of IATF 16949 Automotive Quality Management System.

Climate Goals & Targets

Environmental Challenges

• Increasing extreme weather events globally.
• Stringent disclosure requirements/standards.
• Low proportion of green power and hydropower aluminum.
• Factories closing waste treatment facilities or not standardizing operation.
• Inadequate employee training, insufficient hazard source identification, weak safety awareness.
• Changing customer behaviour and reduced customer demand for traditional products.
• Increased cost of raw materials (e.g., zero-carbon aluminum).

Mitigation Strategies

• Develop relevant emission reduction measures and increase the application of clean technologies.
• Improve data disclosure quality and increase the proportion of green aluminum.
• Conduct annual or regular assessment of factories and determine pollutant emission based on monitoring results.
• Conduct annual equipment safety certification, provide safety education, and implement management measures.
• Follow up with relevant factories to improve the quality of data disclosure; closely follow up with the procurement department and increase the proportion of green aluminium to gradually meet customer requirements.
• Increase consideration of climate issues and actively develop relevant emission reduction measures while increasing the application of clean technologies based on the scopes of carbon emissions of Minth Group.
• Proactively develop comprehensive carbon neutral plans and ensure timely review and updating of climate-related strategic plans.

Supply Chain Management

Supplier Audits: 100% coverage of raw material suppliers; 100% completion rate of annual process audits for 63 suppliers.

Responsible Procurement

• Minth Group Supplier Social Responsibility Code of Conduct (covering human rights, labor rights, health & safety, environmental protection, business ethics, conflict minerals).
• Supplier Integrity Agreement.
• Sustainable Development Commitment.
• Procurement of green aluminum and green steel materials.

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Typhoons
• Extreme heat
• Changes in precipitation patterns
• Rising sea levels
• Water shortage
• Rising mean temperatures

Transition Risks

• Policy and legal risks (e.g., litigation, mandates, increased GHG emission pricing, enhanced emissions-reporting obligations).
• Technology risks (e.g., high cost of carbon emission technology transformation).
• Market risks (e.g., changing customer behavior, reduced customer demand for traditional products, increased cost of raw materials).
• Reputation risks (e.g., shifts in consumer preferences, increased stakeholder concern for negative feedback).

Opportunities

• Resource efficiency (e.g., use of recycling technology).
• Energy source (e.g., participation in carbon emissions trading market, use of lower-emission energy sources, use of new technologies).
• Markets (e.g., access to new assets, use of public-sector incentives).
• Products and services (e.g., shift in consumer preferences, R&D and innovation, ability to diversify business activities).

Reporting Standards

Frameworks Used: GRI Standards 2021, MSCI ESG Industry Materiality Map for Automotive Parts & Equipment, UN Sustainable Development Goals (SDGs), Auto Parts Sustainability Accounting Standard (SASB), HKEX ESG Reporting Guide

Certifications: ISO 14001, ISO 45001, ISO 50001, ISO 37001:2016, IATF 16949

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

Initiatives contribute to these goals through renewable energy development, sustainable product design, waste reduction, and climate change mitigation efforts.

Sustainable Products & Innovation

• ECO-ALUMIN® green aluminum alloy
• Bio-based TPV material
• PC+ABS material with 30% recycling rate
• ABS material with 30% recycling rate
• ABS+GF8 material with 50% recycling rate
• PP resin material with 25-30% recycling rate
• PP resin material with 50% recycling rate
• Lightweight product designs (thermoplastic composite tailgate, multi-material integrated door, intelligent PC quarter window, integrated aluminum alloy rear bumper beam)
• Energy storage products (balcony energy storage, home energy storage, etc.)

Awards & Recognition

• S&P Global Sustainability Yearbook (Chinese Version) 2023
• EcoVadis Committed Medal 2023
• Society of Plastic Engineers (SPE) Automotive Innovation Awards
• National Patent Excellence Award
• China Industry Award-Honorary Award
• Gasgoo Awards
• Lingxuan Award - Gold Prize
• Best Employer of the Year (Zhaopin.com)
• Employer Branding Excellence Award
• Kenney Kesa Star Leap Award for Best HR Management Team Excellence
• Talent Management Benchmark Enterprise Award