Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced carbon emissions through the use of a more efficient cogeneration process that utilizes synthesis gas to generate biomass electricity and does not involve mixing raw materials with phosphoric acid, resulting in less pollution.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Interruption of supply or increases in the prices of raw materials.
• Reliance on a small number of major customers.
• Reliance on a limited number of suppliers.
• COVID-19 outbreak.
• Uncertainties as to the future of existing and planned environmental and health and safety laws and regulations.
• Failure to protect intellectual property rights.
• Intense competition.

Mitigation Strategies

• Sourcing raw materials from multiple suppliers.
• Instituting back-up procedures.
• Contracting with secondary suppliers.
• Actively searching for and negotiating with new suppliers.
• Constructing a new manufacturing facility in Manzhouli City.
• Increasing research and development efforts.
• Exploring new business opportunities.

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: China High and New Technology Enterprise Certificate

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Chinese Scientific and Technological Innovation Middle and Small-Sized Enterprises Top 100 (2012)
• Catalogue of Advanced and Applicable Technologies for Comprehensive Utilization of Renewable Resources (Second Class) (2014)
• Electric Power Business License for Power Generation (2014)
• China High and New Technology Enterprise Certificate (2016)
• Growth Group Excellence Award and Innovation Star Award in China Innovation & Entrepreneurship Competition (Heilongjiang Division) (2019)
• Second Prize in Heilongjiang Province Innovation & Entrepreneurship Competition (Daxing’anling Division) (2019)
• China High and New Technology Enterprise Certificate (2019)
• Model Project for Comprehensive Utilization of Forestry Resources (2020)

Environmental Metrics

ESG Focus Areas

• Renewable Energy
• Sustainable Resource Management
• Environmental Protection

Environmental Achievements

• Biomass energy generated during activated carbon production supplied to State Grid Heilongjiang Electric Power Company
• Utilizes forestry residues, little fuelwood, and wood wastes as primary raw materials
• Cogeneration process resulting in higher efficiency and less pollution compared to traditional methods

Social Achievements

• Recognized by the National Forestry and Grassland Administration of China
• Employs experienced management and professional team with proven industry experience

Governance Achievements

• Listed on Nasdaq: CNEY
• CNEY operating entities own 32 patents related to its proprietary bioengineering and physiochemical technologies in the PRC
• Received various awards and recognitions including China High and New Technology Enterprise Certificate

Climate Goals & Targets

Supply Chain Management

Responsible Procurement

• Sources raw materials from suppliers primarily located near the Greater Khingan Range and Inner Mongolia Manzhouli Region

Climate-Related Risks & Opportunities

Awards & Recognition

• 2012 · Chinese Scientific and Technological Innovation Middle and Small-Sized Enterprises Top 100
• 2014 · Catalogue of Advanced and Applicable Technologies for Comprehensive Utilization of Renewable Resources (Second Class)
• 2016 · China High and New Technology Enterprise Certificate
• 2020 · Model Project for Comprehensive Utilization of Forestry Resources

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Legal and operational risks associated with having the majority of operations in China.
• Recent regulatory actions by the PRC government, including cybersecurity reviews and anti-monopoly enforcement.
• Uncertainty regarding the impact of new laws and regulations on business operations, foreign investment, and U.S. listing.
• Potential delisting from Nasdaq under the Holding Foreign Companies Accountable Act if the PCAOB is unable to inspect the auditor for three consecutive years.

Mitigation Strategies

• No investigations or sanctions related to cybersecurity reviews received.
• Not currently subject to cybersecurity review due to the number of users' personal information.
• Not subject to network data security review under the proposed Security Administration Draft.
• Auditor headquartered in Singapore and subject to PCAOB inspection.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Risks associated with having the majority of operations in China, including potential government intervention or influence.
• Recent regulatory actions in China, including cybersecurity reviews and anti-monopoly enforcement.
• Uncertainty regarding the impact of new laws and regulations on business operations, foreign investment, and U.S. listing.
• Potential delisting under the Holding Foreign Companies Accountable Act if the PCAOB is unable to inspect the auditor for two consecutive years.

Mitigation Strategies

• No investigations or sanctions related to cybersecurity reviews have been received.
• Company is not currently subject to cybersecurity review due to the number of users.
• Company is not subject to network data security review under the proposed Draft Regulations.
• Both former and current auditors have been regularly inspected by the PCAOB.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 pandemic and tighter environmental protection policies in China, leading to higher prices and tighter supplies in the raw materials market.
• Non-compliance with PRC’s regulations relating to employee benefit plans.

Mitigation Strategies

• Enhanced collections or realization on advances to suppliers through tightening vendor prepayment policy and strengthening the monitoring of unrealized prepayment.
• Management is currently in the process of evaluating the steps necessary to remediate the ineffectiveness in internal control over financial reporting, such as hiring more qualified accounting personnel and implementing regular and continuous U.S. GAAP accounting and financial reporting training programs.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Activated carbon for sewage treatment and gas treatment in garbage incineration power plants

Awards & Recognition

• 2012 Chinese Scientific and Technological Innovation Middle and Small-Sized Enterprises Top 100
• 2014 Catalogue of Advanced and Applicable Technologies for Comprehensive Utilization of Renewable Resources (Second Class)
• 2014 Electric Power Business License for Power Generation
• 2016 China High and New Technology Enterprise Certificate
• 2019 Growth Group Excellence Award and Innovation Star Award in China Innovation & Entrepreneurship Competition (Heilongjiang Division)
• 2019 Second Prize in Heilongjiang Province Innovation & Entrepreneurship Competition (Daxing’anling Division)
• 2019 China High and New Technology Enterprise Certificate
• 2020 Model Project for Comprehensive Utilization of Forestry Resources
• 2021 China High and New Technology Enterprise Certificate