Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social Responsibility
• Corporate Governance

Environmental Achievements

• In FY2017, the volume of recycled water reached 7,914,273 cubic meters.
• Reduced greenhouse gas emissions (specific figures not provided but mentioned as a goal achieved through various energy-saving initiatives).

Social Achievements

• Provided 7,947 work positions in FY2017.
• Paid staff remuneration amounting to RMB806.7 million in FY2017.
• Launched a six sigma course system in FY2017 with 19 participants.
• Various staff activities including singing contests, Spring Festival gala, and sports competitions.
• Donated to charity (specific amounts mentioned for several initiatives).

Governance Achievements

• Complied with the requirements in the code provisions as set out in the Corporate Governance Code and Corporate Governance Report, except for deviation from paragraph A.5.2(a) of the Corporate Governance Code.
• Established four special committees under the Board: Strategy Committee, Audit Committee, Nomination Committee, and Remuneration and Assessment Committee.

Climate Goals & Targets

Environmental Challenges

• Impact on the coal mining industry.
• Need for industrial transformation and diversification.

Mitigation Strategies

• Completed the acquisition of ASIMCO Group, one of the biggest and most independent auto parts manufacturing groups in China.
• Initiated the acquisition of Robert Bosch Starter Motors Generators Holding GmbH.

Supply Chain Management

Responsible Procurement

• Comprehensive evaluation project and assessment system for suppliers.
• Prioritizes suppliers in close proximity to operating locations (local purchasing).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Hong Kong Stock Exchange’s Environmental, Social and Governance Reporting Guide

Certifications: ISO 14001, GB/T28001-2011/OHSAS18001, ISO3834-2, TS16949:2009

Awards & Recognition

• Best Delivery Award
• Excellence Lean Award
• GILBARCO Best Global Support Award
• Best CMP Performance Supplier
• Best Quality Contribution Award

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Donated RMB2 million to epidemic prevention and control agencies; CPC leaders and staff made individual voluntary donations of RMB580,000 to medical institutions; donated anti-epidemic supplies to Germany and Spain.

Governance Achievements

• Improved corporate governance structure; enhanced investor communication system; strictly complied with relevant laws, regulations and normative documents.

Climate Goals & Targets

Environmental Challenges

• Global spread of the Covid-19 epidemic impacted production and operation; SEG auto motors business suffered revenue decline due to the Covid-19 pandemic and global automotive industry downturn.

Mitigation Strategies

• Addressed challenges head-on with strong determination; leveraged innovation and faster transformation towards intelligence; optimized governance structure; strengthened internal control team; enhanced cash flow management; proactive measures to achieve operational objectives; adjusted production and organizational structure in Europe and streamlined organizational structure in North America to raise operational efficiency; recalibrated product mix and pricing, focused on profitable orders and important strategic clients, and optimized procurement methods to lower purchase cost; placed extra emphasis on the aftersales market with greater development, coupled with localized sales strategies.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: PricewaterhouseCoopers

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Implemented the 2021 restricted share incentive scheme to stimulate impetus within the Company.
• Continued to solidify our three-tier talent cultivation system with a combination of online and offline training to properly grow our talents, build our talent portfolio and develop a hub for talents.

Governance Achievements

• Completed the mixed ownership reform and established a market-oriented governance structure.
• Completed the election of new sessions of its board of directors, board of supervisors and management under a new shareholder structure.

Climate Goals & Targets

Environmental Challenges

• Surging raw material prices and stiffer industry competition squeezed the company's profitability.
• Extreme rainstorm disasters and the COVID-19 pandemic in Zhengzhou impacted operations.

Mitigation Strategies

• Implemented cost reduction measures and negotiated with clients on raw material price compensation.
• Actively and orderly responded to ensure safety of its employees as well as normal production and operation.
• Will properly work on regular epidemic prevention and control, further improve its ability to prevent and respond to various emergencies and enhance the Company’s emergency management mechanism.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed