Climate Change Data

Weichai Power Co., Ltd.

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:756,764.2 tCO2e
Scope 1 Emissions:188,094.37 tCO2e
Scope 2 Emissions:568,669.83 tCO2e
Total Energy Consumption:1,363,994.25 thousand kWh
Water Consumption:2,883,853.78 tonnes
Waste Generated:179,000 tonnes (hazardous and non-hazardous)
Carbon Intensity:3,536.98 tonnes of CO2e/RMB billion in revenue

ESG Focus Areas

  • Climate Change
  • Green Manufacturing
  • Corporate Governance
  • Employee Well-being
  • Supply Chain Sustainability
  • Community Investment

Environmental Achievements

  • Achieved 100% coverage for GB/T 24001 or ISO 14001 environmental management system certification.
  • Achieved 100% coverage for ISO 50001 energy management system certification.
  • Environmental investments totaled more than RMB 28.3862 million.
  • Reduced VOCs emissions from 287.58 tonnes to 203.82 tonnes.
  • Reduced particulate matter emissions from 26.96 tonnes to 22.19 tonnes.
  • Reduced sulfur oxide emissions from 54.33 tonnes to 46.56 tonnes.
  • Fast Gear's Gaozhixin Factory declared the first "zero carbon factory".

Social Achievements

  • Overall employee satisfaction rate of 96.83%.
  • Total contributions to public welfare and charity amounted to RMB 1.06 million.
  • Weichai Power HQ staff participated in volunteer services 27,000 times, with a total service time of over 30,000 hours.
  • 41,768 employees participated in training, accumulating 4,831,990 hours, with an average of 101 hours of training per person.
  • 100% coverage rate for GB/T 45001 or ISO 45001 occupational health and safety management system certification.
  • Launched mentorship and Morning Rainbow Program for new recruits.

Governance Achievements

  • Established a three-tier ESG governance structure.
  • Obtained GB/T 35770 and ISO 37301 compliance management system certification.
  • Obtained ISO 37001 Anti-Bribery Management System certification.
  • 100% signing rate for Weichai Power HQ's Supplier Integrity and Honesty Co-building Agreement.
  • Conducted 32 risk management training sessions, reaching over 10,000 employees.

Climate Goals & Targets

Long-term Goals:
  • KION to achieve zero carbon emissions by 2050.
Medium-term Goals:
  • Reducing energy consumption per GDP by 2% annually by the end of 2025.
  • Reducing water consumption per GDP by 1% annually by the end of 2025.
  • Increasing the recycling of reclaimed water to 25% by the end of 2025.
  • KION to reduce Scope 1 and Scope 2 GHG emissions by 4.2% and Scope 3 GHG emissions by 2.5% per year compared with 2021 by 2030.
Short-term Goals:
  • Maintaining energy consumption intensity below 0.0183 by 2024.
  • Reducing energy consumption intensity by 18% compared with 2020 by 2025.
  • Maintaining water consumption intensity below 0.266 by 2024.
  • Reducing water consumption intensity by 16% compared with 2020 by 2025.

Environmental Challenges

  • Global economic slowdown and low domestic industry operation levels.
  • Climate change risks (extreme weather, policy and legal risks, technical risks, market risks, reputational risks).
  • Supply chain disruptions.
  • Maintaining high-quality development amidst challenges.
Mitigation Strategies
  • Structural adjustments, transformation, upgrading, quality improvement, and efficiency enhancement.
  • Established a special team for carbon peaking and carbon neutrality goals.
  • Developed risk management and internal control systems.
  • Implemented risk prevention and control measures.
  • Developed alternative sourcing strategies.
  • Continuous improvement of ESG performance by supplier partners.

Supply Chain Management

Supplier Audits: 881 on-site audits in 2023

Responsible Procurement
  • Supplier Integrity and Honesty Co-building Agreement
  • Supplier Code of Conduct
  • KION Group Supplier Code of Conduct and Supplier Conduct Principles

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
Transition Risks
  • Policy and legal risks
  • Technical risks
  • Market risks
  • Reputational risks
Opportunities
  • Development of energy-efficient products and clean energy technologies

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide, GRI Sustainability Reporting Guidelines (GRI Standards), Guidelines on Corporate Social Responsibility Reporting for Chinese Enterprises, MSCI-ESG rating

Certifications: GB/T 24001/ISO 14001, ISO 50001, GB/T 35770, ISO 37301, ISO 37001, IATF 16949, ISO 9001

Sustainable Products & Innovation

  • High thermal efficiency gas engines, methanol engines, hydrogen engines, and ammonia engines.
  • Fuel cell systems.
  • Electric drive units for heavy-duty trucks, light trucks, and buses.
  • Weichai battery products.
  • Hydrogen fuel cell system (KION).

Awards & Recognition

  • First prize of National Science and Technology Progress Award
  • China Quality Award
  • China Patent Gold Award
  • China Trademark Award for Trademark Innovation
  • National Quality Award
  • National Enterprise Culture Demonstration Base
  • 2023 China's Top 100 Best Employers
  • AAA Certification for Integration of Informatization and Industrialization Management System