Climate Change Data

Environmental Metrics

Social Achievements

• Released 2016 Annual Social Responsibilities Report, the 9th consecutive year.

Governance Achievements

• Established Information Disclosure Committee and Rules for its implementation.
• Formulated Return plan for Shareholders of CSG Holding Co., Ltd. in the Next Three Years (2015-2017).

Climate Goals & Targets

Environmental Challenges

• Significant personnel change in 2016, leading to risk of talent shortage and staff turnover.
• Downward demand and excess capacity in flat glass and architectural glass industries.
• Industrial integration and price fluctuation risks in solar energy and PV industry.
• Accelerated technical upgrading and slow demand in display devices and electronic glass industry.
• Fluctuation of foreign exchange rate due to overseas sales.
• Fluctuation of flat glass and polysilicon industrial prices, rising labor costs.

Mitigation Strategies

• Constructing new corporate culture, strengthening innovation execution culture, reinforcing internal core cohesion.
• Establishing performance-related remuneration incentive system.
• Strengthening internal employee training, introducing high-quality talent.
• Establishing sustainable talent management system.
• Accelerating technical upgrading and reform of production lines, expanding industrial scale through M&A (flat glass).
• Strengthening high-end and overseas market development in architectural glass industry.
• Accelerating construction of silicon wafer production expansion projects, increasing support for downstream PV power stations (solar energy).
• Strengthening research and development of new technologies and products, improving ultra-thin electronic glass product quality (electronic glass and displays).
• Vigorously exploiting potential and increasing efficiency, implementing energy saving and consumption reduction.
• Focusing on market changes, locking bulk commodity prices at proper times.
• Utilizing bulk purchase advantage to reduce purchase cost.
• Improving automatic production level, raising labor productivity.
• Settling exchange in time, using risk-evading instruments to lock exchange rates.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Overall annual CO2 emissions decreased by 1.64% compared with the previous year.
• Waste heat power generation, distributed photovoltaic power generation and other self-generated electricity had reached 32% of the Group's total electricity consumption.

Social Achievements

• During the critical period of the epidemic, the Company invested and established Shenzhen CSG Medical Technology Co., Ltd., which produced masks, and took the initiative to undertake the production task of materials reserved by Shenzhen Government for epidemic prevention and control.
• Donated more than 10 million self-produced masks to Shenzhen and other places.

Governance Achievements

• The Company has established the Information Disclosure Management System and promptly improved it in accordance with newly issued laws and regulations.
• The Company formulated the Return plan for Shareholders of CSG Holding Co., Ltd. in the Next Three Years (2018-2020).

Climate Goals & Targets

Environmental Challenges

• Insufficient reserves of senior talents for the long-term development of the Company.
• Fierce competition of similar products and rising pressure of raw materials and fuels in the glass industry.
• Risk of product price fluctuations and a shrinking market share for polysilicon products in the solar photovoltaic industry.
• Risk of accelerating the upgrading of material technology due to the continuous rapid iterative upgrading of the technical requirements of downstream application scenarios in the electronic glass and display industry.
• Fluctuation of market price of glass and solar energy PV industrial and prices of upstream raw materials, and rising labor costs.
• Fluctuation of foreign exchange rate.

Mitigation Strategies

• Establish an open, equal, fair and enterprising corporate culture, strengthen the internal core cohesion of employees; Establish remuneration incentive system which related to performance and improve employee incentive mechanism; Strengthen internal employee training, introduce external high-quality talent, and rapidly establish a high-quality talent team; Establish sustainable talent recruitment, cultivation, utilization, retaining, and development management system; create a future-oriented human resource production, development, supply system that can support the future development of CSG.
• Improve profitability through continuous lean management and differentiated operation, product structure optimization; expand the scale of the industry by investing in new production lines, enhance the competitiveness of the industry; Strengthen the development of high-end market and overseas market, actively develop traditional residence market, and at the same time, maintain the industrial advantageous position of the Company through market-oriented extension of industrial chain.
• Maintain continuous investment in research and development, accelerate the development and introduction of new technologies, and appropriately upgrade equipment and replace them with new ones to maintain corporate competitiveness.
• Strengthen research and development of new technology and new product, maintain its technical leading advantage in the industry, and rapidly develop terminal market and improve industrial profitability.
• Vigorously exploit potential and increase efficiency, and effectively implement energy saving and consumption reduction; Focus on the market change, and lock the price of bulk commodity at proper time; Utilize bulk purchase advantage to reduce purchase cost; Improve automatic production level, raise labor productivity.
• Settle exchange in time and use safe and effective risk evading instrument and product to relatively lock exchange rate and reduce the risk caused by fluctuation of exchange rate.

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

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Social responsibility
• Sustainable development

Environmental Achievements

• Implemented more than 80 energy-saving measures to further reduce carbon emissions by tens of thousands of tons.
• Renewable energy power generation accounted for more than 30% of the Group's total electricity consumption.
• Added a provincial-level environmental protection A-Class enterprise; 3 subsidiaries rated as national and provincial environmental protection A-Class enterprises, and 5 subsidiaries rated as national-level "Green Factory".

Social Achievements

• Donated more than RMB 300,000 of funds and materials to various sectors of society.
• Submitted 130 patent applications and obtained 135 new patent authorizations, including 21 invention patent authorizations.
• Completed equity distribution of 2020, with actual cash dividend amount (including tax) of RMB 307,069,211, accounting for 39.40% of the net profit attributable to shareholders of listed company in 2020.
• Provided assistance of over RMB 180,000 to 8 employees and their families who suffered accidents.

Governance Achievements

• No major changes in the Company's profit composition or profit resources during the reporting period.
• No major environmental incidents occurred in the first half of 2021.
• No major changes in directors, supervisors and senior management of the company during the reporting period.

Climate Goals & Targets

Environmental Challenges

• Uncertainties from the epidemic situation at home and abroad and the international political environment.
• Fierce competition in the glass industry and pressure from rising raw materials and fuels.
• Risk of accelerating material technology upgrades in the electronic glass and display industry.
• Challenge of an imbalance in the supply chain in the solar energy industry.
• Fluctuation of market price of solar glass and PV industry and prices of upstream raw materials.
• Rising labor costs.
• Fluctuation of foreign exchange rate.

Mitigation Strategies

• Normalize epidemic prevention and control, strengthen market attention, and timely adjust strategy.
• Enhance competitiveness through lean management, differentiated management, and product structure optimization.
• Strengthen high-end market and overseas market development in the architectural glass industry.
• Strengthen resource integration across the industry chain in the solar energy industry.
• Vigorously exploit potential and increase efficiency, implement energy saving and consumption reduction.
• Focus on market change, lock bulk commodity prices, and take advantage of bulk purchases.
• Improve automatic production level, raise labor productivity.
• Strengthen new application market development.
• Settle exchange in time and use safe and effective risk-evading instruments.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• "Champion Enterprise Award"
• "Best Board of Directors for Investor Relations of Chinese Main Board Listed Companies"

Environmental Metrics

ESG Focus Areas

• Energy conservation
• Environmental protection
• Sustainable development
• Carbon peaking
• Carbon neutrality
• Employee safety and health
• Social welfare
• Shareholder and creditor rights protection
• Employee welfare

Environmental Achievements

• Waste heat power generation and photovoltaic power generation totaled about 240 million kWh, equivalent to reducing carbon dioxide emissions by more than 140,000 tons.
• Many subsidiaries have reached ultra-low emission standards.
• Air pollutant emission concentrations of most subsidiaries were lower than 50% of the emission standard and enjoyed the preferential policy of halving environmental tax.

Social Achievements

• Donated over RMB 200,000 in funds and materials to various sectors of society for charitable and public welfare activities.
• Safety standardization certificates for 18 subsidiaries obtained, with 6 reaching the second level and 12 reaching the third level.
• 6 subsidiaries rated as national-level "Green Factories".

Governance Achievements

• No illegal external guarantee during the reporting period.
• No non-operating fund of listed company occupied by controlling shareholder and other related parties.
• No major ESG-related controversies or legal issues mentioned.

Climate Goals & Targets

Environmental Challenges

• Uncertainties in the international and domestic political and economic environment.
• Fierce competition in the glass business, pressure from rising raw material and fuel prices, and increasing labor costs.
• Price game between upstream silicon materials, silicon wafers, and cells of photovoltaic modules affecting market demand for photovoltaic glass.
• Excessively rapid capacity expansion leading to phased overcapacity in photovoltaic glass business.
• Demand slowdown in the downstream architectural glass market for float glass business.
• Fierce competition among domestic similar products, oversupply in the domestic electronic glass market.
• Falling product prices and increasing inventory in the electronic glass business.
• Accelerated material technology upgrades due to continuous rapid iterative upgrades of technology requirements in downstream application scenarios.
• Overcapacity and rapid price decline in the solar energy business.
• Rapid price decline in high-purity crystalline silicon.
• Risk of fluctuation of foreign exchange rate.

Mitigation Strategies

• Strengthening attention to the market and timely adjusting operation strategies.
• Optimizing product structure in alignment with market demand, promoting lean management and differentiated operation to improve profitability.
• Accelerating digital, networked, and intelligent transformation of the manufacturing industry.
• Strengthening the development of high-end and overseas markets, deepening market exploitation, refining market layout, and improving service capability.
• Strengthening profitability and competitiveness through continuously promoting lean management and differentiated operation, optimizing the product mix.
• Strengthening CSG’s brand presence for electronic glass, building a solid foundation for medium-and high-end products, enhancing customer recognition, and stabilizing the high-end market share.
• Strengthening the R&D of new technologies, new products, and new applications.
• Strengthening the integration of resources across the industry chain, paying attention to the price trend, supply-demand relationship, and terminal demands.
• Increasing R&D investment, strengthening operation management, and maintaining corporate competitiveness.
• Carrying out cost reduction and efficiency increase activities, implementing energy saving and consumption reduction measures, and upgrading and replacing equipment.
• Investing in new production lines to expand industry scale and increase market share.
• Timely settling exchange and using safe and effective risk-evading instruments to relatively lock exchange rates.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Ice Kirin high-performance energy-saving glass

Awards & Recognition

• Top 10 National Leading Enterprise in the Construction Material Industry with Technological Breakthroughs
• Shenzhen Top 500 Enterprises for 2022
• Green Building Energy-saving Recommended Product Certificate
• Engineering Construction Recommended Product Certificate
• Top 10 Preferred Brands for 2022 Real Estate Strategic Procurement
• Top 10 Preferred Brands for 2022 China's Low-Carbon Building Energy Efficient Glass Procurement
• Top 50 Building Materials in China
• Preferred Brand for Building Glass