Climate Change Data

Zhejiang Sanhua Intelligent Controls Co., Ltd.

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:256,219 tCO2e/year
Scope 1 Emissions:22,780 tCO2e/year
Scope 2 Emissions:233,439 tCO2e/year
Renewable Energy Share:34% (Sanhua Commercial Refrigeration)
Total Energy Consumption:525,259 MWh/year
Water Consumption:3,316,957.40 m3/year
Waste Generated:23,602.55 tons/year
Carbon Intensity:0.10 tCO2e/RMB 10,000 revenue

ESG Focus Areas

  • Environmental Protection
  • Energy Saving
  • Corporate Governance
  • Supply Chain Management
  • Employee Rights
  • Occupational Health and Safety
  • Product Quality
  • Innovation
  • Social Responsibility

Environmental Achievements

  • Implemented a smart energy IoT management platform to monitor and analyze energy usage, mitigating environmental impacts and reducing carbon emissions.
  • Established overseas factories to reduce transportation distances and carbon emissions associated with logistics.
  • Developed energy-efficient products such as micro-channel heat exchangers (30% increase in heat transfer efficiency, up to 50% reduction in refrigerant charge).
  • Developed products suitable for R32/R290/R454B refrigerants and CO2 refrigerant.
  • Achieved 4 Green Factory certifications.

Social Achievements

  • Recruited 2,872 new employees, including 500 outstanding graduates.
  • Organized 19 ESG training sessions for over 200 participants.
  • Established the "Sanhua Intelligent Controls Family" Employee Assistance Fund.
  • Organized various employee engagement activities (sports competitions, skills contests, holiday parties).
  • Maintained a 100% labor contract signing rate and social insurance coverage rate.

Governance Achievements

  • Revised the Articles of Association, Rules of Procedure of the Shareholders' Meeting, and System of Independent Directors.
  • Established a "three lines of defence" risk management mechanism.
  • Formulated the Information Security Risk Management Procedures.
  • Held 14 legal trainings for 1,500 employees.
  • Achieved 100% anti-corruption training coverage for procurement staff.

Climate Goals & Targets

Environmental Challenges

  • Reducing carbon emissions throughout the product lifecycle.
  • Managing risks associated with low GWP refrigerants (flammability, high component costs).
  • Ensuring supply chain sustainability and responsible procurement.
  • Maintaining information security in a rapidly expanding digital environment.
Mitigation Strategies
  • Investing in R&D for energy-efficient and low-carbon products.
  • Developing workable solutions to address the challenges of low GWP refrigerants.
  • Implementing sustainable procurement policies and supplier audits.
  • Upgrading the information security management system and conducting regular risk assessments.

Supply Chain Management

Supplier Audits: 10% coverage (Sanhua Automotive)

Responsible Procurement
  • Basic Supply Agreement for Suppliers
  • Integrity and Self-Discipline Cooperation Agreement
  • Corporate Social Responsibility Agreement
  • Supplier Code of Conduct
  • Conflict Minerals Statement
  • Conflict Minerals Reporting Template

Climate-Related Risks & Opportunities

Opportunities
  • Development of energy-efficient products
  • Expansion into renewable energy technologies

Reporting Standards

Frameworks Used: GRI Standards (2021 Edition)

Certifications: ISO 9001, IATF16949, QC080000, ISO 14001 (16 subsidiaries)

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)
  • Goal 8 (Decent work and economic growth)
  • Goal 11 (Sustainable cities and communities)
  • Goal 17 (Partnerships for the goals)

Initiatives related to renewable energy, energy efficiency, sustainable procurement, employee well-being, community investment, and supply chain sustainability contribute to these goals.

Sustainable Products & Innovation

  • Micro-channel heat exchangers
  • Products suitable for R32/R290/R454B refrigerants and CO2 refrigerant
  • Lead-free products

Awards & Recognition

  • Top 100 Leading Enterprises in Social Responsibility of Private Enterprises in Zhejiang Province (Sanhua Holding Group)
  • The First Batch of Eagle Enterprises in Zhejiang Province (Sanhua Holding Group)
  • 2023 Zhejiang Machinery Industry Science and Technology Award-Third Prize (Sanhua Commercial Refrigeration)
  • 2023 Top 100 High-tech Enterprises of Zhejiang Province in Innovation capability
  • Benchmarking Enterprise for Management Benchmarking and Improvement of Zhejiang Province
  • 2023 Top 500 Chinese Enterprises (No. 441) (Sanhua Holding Group)
  • 2023 Top 100 Enterprises of Shaoxing City (Sanhua Holding Group)
  • 2023 Energy Saving and Emission Reduction Contribution Award of China Energy Conservation Association - Excellent Parts and Components Brand in Heat Pump Industry
  • 2023 Excellent Case of CSR Practice in Automotive Industry (Sanhua Automotive)
  • Top 100 Chinese Automotive New Supply Chain (Sanhua Automotive)
  • "Golden Nail Award" of China's home appliance industry chain (Sanhua Aweco (Wuhu))
  • "Zero-Waste Cities Cell" (Zhejiang Sanhua Commercial Refrigeration Co., Ltd.)