Climate Change Data

Environmental Metrics

ESG Focus Areas

• Emissions
• Use of Resources
• The Environment and natural resources
• Employment
• Health and safety
• Development and training
• Labour standards
• Supply chain management
• Product responsibility
• Anti-corruption
• Community investment

Environmental Achievements

• Reduced VOCs emissions by over 95% at Rubber & Plastic Components Company.
• Transformed all coal-fired boilers to natural gas boilers and implemented energy-saving measures to reduce greenhouse gas emissions.
• Reduced sludge discharge by around 570 tons annually at Truck Company's effluent treatment plant.
• Cut lighting power by 151kW and saved 700,000 kWh annually at Truck Company by replacing lighting with energy-saving lamps.
• Reduced energy consumption for manufacturing shell moulds by 22.3% at Components Manufacturing Division.

Social Achievements

• Established quick responding mechanism in Light Truck Division, solving 266 out of 333 reported quality problems.
• Established “SINOTRUK Club of Million-km Heroes” to recognize customers with high vehicle mileage, reflecting product reliability.
• Delivered 20 Generation I smart trucks, representing a new stage for Chinese smart trucks.
• Conducted customer satisfaction survey showing “satisfied” level or above for MAN technology products.
• Organized various recreational, sport and cultural activities for employees.

Governance Achievements

• Established a sound intellectual property management system.
• Formulated provisions on improving work style and strengthening honesty and self-discipline to combat corruption.
• Signed “Agreement on Mutual Commitment to Honesty and Integrity” with contracting parties to prevent corruption.

Climate Goals & Targets

Environmental Challenges

• Reducing pollutant emission and resource consumption arising from production and operations.
• Managing occupational hazards and preventing occupational diseases.

Mitigation Strategies

• Implemented ISO 14001 Environmental Management System and established a perfect environmental management system.
• Implemented GB/T28001-2011 OHSAS (Occupational Health and Safety Assessment System) and formulated a robust occupational health and safety management system.
• Conducted annual comprehensive examination at work sites to identify and rectify occupational hazards.

Supply Chain Management

Responsible Procurement

• Strict supplier selection procedures to ensure product quality and social responsibility.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix 27 of the Listing Rules)

Certifications: ISO 9001:2008, ISO 14001, GB/T28001-2011 OHSAS

Sustainable Products & Innovation

• Various series of new energy vehicles (electric light truck, light truck with fuel battery, etc.)

Environmental Metrics

ESG Focus Areas

• Emissions
• Wastewater treatment
• Addressing climate change
• Waste reduction
• Energy saving
• Water saving
• Noise control
• New energy vehicles
• Staff management
• Compensation and benefits
• Position system
• Staff activities
• Safe production
• Occupational health
• Staff training
• Preventing child labor
• Preventing forced labor
• Supplier management
• Product quality
• Customer service
• Combating corruption and promoting cleanness
• Charity

Environmental Achievements

• Reduced greenhouse gas emissions through boiler transformation and energy-saving measures.
• Upgraded smoke and dust treatment facilities at Axle Company, reducing particulate emissions.
• Transformed coating lines in several subsidiaries to water-based coating, reducing VOCs emissions.
• Casting & Forging Center successfully applied for A-class enterprise in the List of Emergency Emission Reduction for Heavy Polluted Weather.
• Improved sewage treatment station at Hangzhou Engines Company, achieving stable, standard discharge.
• LDT Division implemented energy-saving measures such as LED lighting renovation and using concentrated water for cleaning, reducing energy and water consumption.

Social Achievements

• Improved staff canteens at various subsidiaries.
• Organized various recreational, sport, and cultural activities for employees.
• Implemented a robust occupational health and safety management system, achieving ISO 45001 certification.
• Conducted comprehensive annual inspection of various occupational hazard factors in the workplace.
• Installed automatic welding robots and industrial fans at Hubei Huawei Company to improve occupational health and safety.
• Provided various training programs for employees at different levels.
• Established long-term enterprise-college cooperation with Taishan University for talent cultivation.

Governance Achievements

• Established a sound intellectual property management system.
• Implemented anti-corruption measures, including training programs and integrity agreements.
• Truck Company won the “2019 Outstanding Organization Award of Mass Experience Exchange on Quality Management Activities in Ji’nan City”.

Climate Goals & Targets

Environmental Challenges

• Reducing greenhouse gas emissions
• Reducing water consumption
• Improving supplier quality management
• Maintaining a safe working environment
• Preventing occupational diseases
• Talent acquisition and retention

Mitigation Strategies

• Implementing energy-saving measures and boiler transformations
• Improving water usage management and implementing water-saving initiatives
• Conducting supplier audits and implementing strict supplier selection procedures
• Establishing a robust occupational health and safety management system and conducting regular inspections
• Implementing occupational health examinations and providing protective equipment
• Establishing long-term enterprise-college cooperation for talent cultivation

Supply Chain Management

Supplier Audits: 23 on-site reviews + 3 reviews by China Quality Certification Centre in 2019

Responsible Procurement

• Supplier Access Office review for first-time suppliers
• Strict supplier selection procedures to ensure product/service quality
• Communication of environmental and quality standards to suppliers
• Signing purchasing agreements with suppliers to request fulfillment of social responsibilities

Climate-Related Risks & Opportunities

Opportunities

• Development of new energy vehicles

Reporting Standards

Frameworks Used: ESG Guide in Appendix 27 to the Listing Rules

Certifications: ISO 9001:2015, IATF 16949, ISO 14001, ISO 45001:2018

Sustainable Products & Innovation

• Hydrogen terminal tractors
• City buses
• Urban distribution trucks
• HOWO T5G-4Ò 2 pure electric sanitation vehicle chassis
• Pure electric buses
• HOWO LDT pure electric van transporter

Awards & Recognition

• “Double Top Ten” organization of China’s best energy conservation technology and best energy conservation practices
• “2019 Outstanding Organization Award of Mass Experience Exchange on Quality Management Activities in Ji’nan City”

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Tight global supply chains and supply shocks
• Depressed real estate development industry
• Gradual reduction of benefits from “restrictions of power and production & control over energy consumption and carbon emission”

Mitigation Strategies

• Strengthened quality process control through quality indicators and assessment system construction, quality information processing, and corporate standard upgrades
• Accountability for production safety implemented in an all-round way, and the management and control of major risk points continuously strengthened
• Environmental protection management strengthened and the concept of green development put into practice
• Used cross-border Renminbi as preferred currency of settlement
• Adopted forfaiting for long-term usance letters of credit
• Accelerated collection of loans

Supply Chain Management

Responsible Procurement

• Upholds integrity, trust and win-win cooperation as concept of supply chain management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• New energy vehicles

Environmental Metrics

ESG Focus Areas

• Environmental Management
• Safety
• Corporate Governance

Environmental Achievements

• Sinotruk and all its 19 manufacturing units passed the ISO 14001 EMS certification, with 100% coverage. The coverage of ISO 14001 external audit also reached 100%.
• 100% compliance rate for wastewater and waste gas emissions, and 100% of hazardous wastes were disposed of in compliance with regulations. No major environmental complaints or penalties were received.

Social Achievements

• Established a comprehensive after-sales management system to proactively communicate with customers, protect customers' privacy and improve customer service quality.
• Formulated the Procedures for Training Management, the Internal Trainer Management Procedures and other relevant policy documents. Built a three-level training system for employees and a strong team of trainers.

Governance Achievements

• Adopted the corporate governance codes as set out in Appendix 14 “Corporate Governance Code and Corporate Governance Report” to the Listing Rules as its own code of corporate governance.
• Established a whistleblowing policy and system.

Climate Goals & Targets

Environmental Challenges

• Significant drop in sales volume of HDTs in the PRC due to economic slowdown and disrupted logistics.
• Decrease in sales volume of LDTs resulting in a relatively large drop in sales revenue and the decline in the outcome of economies of scale in production.
• Decrease in sales volume of engines leading to a drop in sales revenue and higher fixed costs shared by each engine.

Mitigation Strategies

• Strengthened quality process control through quality research, quality system, quality planning, quality supervision and quality improvement.
• Improved safety management system, implemented supervision, and continuously improved safety management level.
• Adopted cross-border Renminbi as settlement currency for business transactions in areas with sufficient Renminbi; purchased forward financial products from banks to hedge exchange rate fluctuations; adopted forfaiting to accelerate the collection of trade receivables.

Supply Chain Management

Responsible Procurement

• Upholds integrity, trust and win-win cooperation as concept of supply chain management; provides various trainings for suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14001:2015