Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Management
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Three factories passed clean production acceptance, reaching the advanced level of cleaner production in the industry.
• Reduced electricity consumption per unit of product by 0.76%, water consumption per unit of product by 19.16%, and comprehensive energy consumption by 0.79%.
• Environmental protection investment in 2019 was RMB 122.84 million.

Social Achievements

• Provided 247 job positions for targeted poverty alleviation and paid a total of more than RMB 20 million in wages.
• Annual total donation of external assistance reached RMB 2.373 million.
• Organised 83,926 person-times to participate in safety training.

Governance Achievements

• Revised its Articles of Association in accordance with the latest requirements of regulatory authorities.
• Established a board-level Sustainable Development Committee.
• Improved information disclosure, rated "good" in the assessment on the Shenzhen Stock Exchange.

Climate Goals & Targets

Environmental Challenges

• Intensified market competition in organic lithium production.
• The need to manage a large amount of spodumene calcium silicate slag produced during the production process.
• Potential increase in greenhouse gas emission costs in the medium term and transformation risks such as low-carbon technology transformation.

Mitigation Strategies

• Relocation and expansion of organic lithium production lines.
• Researching the composition of calcium silicate slag and its applications; expanding the sale of calcium silicate slag.
• Submitting annual greenhouse gas emission audit reports; setting carbon reduction targets; deploying low-carbon technologies and processes.

Supply Chain Management

Supplier Audits: 13 suppliers audited during the year

Responsible Procurement

• Formulated the Code of Conduct for Suppliers
• Follows OECD Due Diligence Guidance for Responsible Supply Chains of Minerals

Climate-Related Risks & Opportunities

Transition Risks

• Strengthened responsibility for emissions reporting in the short term
• Potential increase in greenhouse gas emission costs in the medium term
• Transformation risks such as low-carbon technology transformation

Opportunities

• Growth in new energy and new energy vehicle industries

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide

Certifications: ISO 14001, ISO 45001, IATF 16949

Sustainable Products & Innovation

• Solid-state lithium battery products
• Battery-grade anhydrous lithium hydroxide products
• Micro-powder lithium hydroxide products

Awards & Recognition

• China Top 100 Enterprises Award
• Tianma Award for Best Board of Directors in Investor Relations
• 2019 Brand Empowering China: Outstanding Brand Award
• New Energy Listed Company with Best Growth Potential
• 2019 Green Paradigm Award
• Responsible Brand of the Year 2019
• China's Most Socially Responsible Enterprise
• Best Growth Potential Award for Hong Kong Listed Companies
• Best Information Disclosure Award for A-share Listed Companies
• 20th China Patent Excellence Award

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Technological Innovation
• Environmental Management
• Safety
• Talent Development
• Responsible Supply Chain
• Community Engagement
• Climate Change

Environmental Achievements

• Reduced carbon emissions per tonne of lithium carbonate equivalents from 8.47 in 2020 to 7.25 in 2021.
• Reduced water consumption per tonne of products by 11% compared to 2020.
• Achieved zero wastewater discharge at Basic Lithium Plant.
• Lithium hydroxide monohydrate product passed Carbon Label certification.

Social Achievements

• Implemented equity incentive scheme for employees.
• Renovated canteens to improve employee dining experience.
• Provided training and support for local community members in Argentina.
• Celebrated local festivals and traditions in Argentina.

Governance Achievements

• Formulated Management Regulations for Anti-bribery, Anti-Corruption, Anti-fraud and Reporting.
• Implemented a “zero-tolerance” approach to corruption.
• Improved internal control process for bidding, negotiated tendering, and contract review.
• Conducted anti-corruption training for employees (12 hours/person).

Climate Goals & Targets

Environmental Challenges

• Rising prices of raw materials (coal, sulfuric acid, caustic soda, soda ash).
• Negative effects of COVID-19.
• Climate change related risks (extreme weather, changes in precipitation affecting lithium extraction).
• Policy risks related to carbon emissions trading and battery recycling regulations.
• Market risks related to changes in demand for lithium products.

Mitigation Strategies

• Implemented quality management in accordance with IATF 16949 specification.
• Improved production economy and eliminated leakage and venting in the plant.
• Developed alternative sourcing strategies.
• Integrated climate risk indicators into the Company’s risk management system.
• Developed climate risk management strategies and countermeasures.
• Developed carbon emission reduction roadmap and promoted renewable energy.
• Introduced advanced low-carbon production techniques.
• Developed a responsible supply chain that begins with lithium mines in the upstream.
• Expanded collaboration with well-known lithium battery companies.

Supply Chain Management

Responsible Procurement

• Developed Code of Conduct for Suppliers.
• Implemented stringent procurement policy emphasizing sustainability.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Changes in precipitation affecting lithium extraction

Transition Risks

• Higher carbon emission prices due to carbon emissions trading market integration
• More rigorous industrial energy conservation rules

Opportunities

• Growth of new energy vehicle market
• Development of energy-efficient products

Reporting Standards

Frameworks Used: HKEx ESG Reporting Guide

Certifications: ISO 45001:2018, ISO 14001:2015, IATF 16949:2016

Sustainable Products & Innovation

• Solid-state batteries
• Anhydrous lithium hydroxide
• Ultra-thin lithium strips
• Low-noise TWS battery technology

Awards & Recognition

• Jiangxi Province Science and Technology Advancement Award (third prize)
• Jiangxi Province Patent Award
• National Demonstration Enterprise for the Integration of Advanced Manufacturing and Modern Services
• First prize of the China Nonferrous Metals Industry Association’s Science and Technology Advancement Award
• China Top 500 ESG Enterprises
• China’s Pioneering Carbon Company

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Management
• Energy Management
• Water Resource Management
• Emissions Management
• Ecological Conservation
• Production Safety
• Occupational Health
• Chemical Management
• Employee Rights
• Employee Training and Development
• Employee Benefits
• Social Responsibility
• Community Welfare
• Corporate Governance
• Risk Management
• Business Ethics
• Anti-corruption
• Supply Chain Management
• Product Quality and Safety
• Intellectual Property Protection
• Customer Service
• Circular Economy
• Technological Innovation

Environmental Achievements

• GHG emission intensity reduction of 18.96% compared to the previous year
• Rooftop distributed photovoltaic installed capacity of 15.57MWp, reducing CO2 emissions by approximately 25,928.35 tons
• 50 electric heavy-duty trucks put into operation, reducing carbon emissions during transportation
• Proportion of electric forklifts in subsidiary factories close to 60%, electric loaders nearly 11%, and electric vehicles in commercial vehicles approximately 40%
• Successfully connected a 2.45MWp photovoltaic system to the grid in 2023
• Achieved a reduction of 24.80 tons in annual particulate matter emissions and a reduction of 36.33 tons in sulfur dioxide emissions at Mahong Plant
• Successfully passed the ISO 14001 Environmental Management System audit

Social Achievements

• RMB 3.65 million worth of donations and goods to various public welfare charity projects
• Various volunteering activities including visiting and supporting firefighters, nursing homes, and blood donation drives
• Investment in Argentina to create sustainable job opportunities for local residents
• Employee satisfaction rate reached 81.96%
• Organized the 9th Employee Sports Games

Governance Achievements

• MSCI ESG Index rating upgraded to A from BBB
• CDP questionnaire received a B- score
• Established a Sustainability Committee under the Board to comprehensively lead the Company's climate governance efforts
• Implemented an executive performance model linked to ESG goals
• Strengthened the construction of the anti-fraud and anti-bribery organizational system
• Conducted multiple anti-corruption and integrity activities

Climate Goals & Targets

Environmental Challenges

• Obstacles in the pursuit of sustainability in lithium extraction technologies research and development (R&D), and increased recycling
• Potential ESG Risk Factors: Environmental management policy, Risk Control Management, Talent Development System Construction, Supplier Sustainability Management

Mitigation Strategies

• Improvements in yield, reduced applications, enhanced total reserves and utilization efficiency, and ensured stable raw material supply
• Further improve management systems in areas such as GHG emissions and energy management, and develop more detailed and clearer environmental management programs
• Enhance risk management system and implement internal control mechanisms
• Strengthen supervision and management of business ethics and anti-corruption efforts
• Enhance the training and development system for employees
• Increase regulatory efforts on ESG considerations in the process of supplier auditing, supervision, and follow-up

Supply Chain Management

Supplier Audits: 3419 suppliers in Mainland China and Hong Kong, Macau, and Taiwan region, 1619 overseas suppliers

Responsible Procurement

• Supplier Code of Conduct
• Cooperation Anti-Bribery, Anti-Corruption, Anti-Child Labor Commitment
• Procedure for Identifying Conflict-Affected and High-Risk Areas (CAHRAs)
• Responsible Mineral Resource Supply Chain Management Policy

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products
• Expanding business direction, enhancing the Company's green competitiveness

Reporting Standards

Frameworks Used: GRI Standards, SASB Chemical Industry Standards, United Nations Sustainable Development Goals (UN SDGs), MSCI ESG Ratings

Certifications: IATF16949, ISO 9001:2015, ISO 14001, ISO 45001, ISO 27001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 15
• Goal 17

The Company leverages its platform and resource advantages to exert its business influence and actively promote the implementation of various sustainability objectives.

Sustainable Products & Innovation

• Solid-state batteries
• Super semi-solid "New Frontier" battery

Awards & Recognition

• MSCI ESG Rating: A
• CDP: B-
• Fortune 500 Listed Companies in China
• Fortune China ESG Influential Enterprises
• Forbes Global 2000
• Forbes China ESG Innovation Enterprises
• China’s Top 500 Private Enterprises
• Top 500 Private Enterprises in China's Manufacturing Industry
• First Prize in the 2023 China Nonferrous Metals Industry Science and Technology Award
• Vice Chairman Unit of the Power Battery Application Branch of China Chemical and Physical Power Sources Industry Association
• First Prize for Outstanding Corporate Culture Achievements in 2023
• 2023 Jiangxi Province Intelligent Manufacturing Benchmark Enterprise
• 2023 Jiangxi Province Science and Technology Leading Enterprise
• First Prize in the 2023 Jiangxi Provincial Science and Technology Award
• Honorary Title of "Most Charitable Donation Enterprise" in Jiangxi Province
• Caixin Awards - 2023 Environmentally Friendly Pioneer Enterprise Award
• 2023 Sustainable Brand Model "Circular Economy List"
• 2023 Wangcai Lithium Battery Lithium Cup Golden Ball Award (Lithium Salt Group)
• 2023 Annual Rising Star
• 2023 Annual Best Strategic Partner
• 2023 (9th) Starting Point Golden Tripod Award - Battery Industry Annual Segment Leadership Brand
• High Power Energy Storage 2023 Energy Storage Industry TOP50
• 2023 Energy Storage List - Top Ten Brands of the Year
• 2023 Energy Storage Enterprise Pioneer Award - Battery Core
• 2023 (9th) Starting Point Golden Tripod Award
• Jiangxi Province Small and Medium-sized Enterprise Measurement Partner