Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Consumption
• Greenhouse Gas Emissions
• Product Quality
• Employee Health and Safety
• Employee Development
• Corporate Governance
• Supply Chain Management
• Community Investment
• Water Resources Management
• Waste Management

Environmental Achievements

• 7.1% year-on-year drop in GHG emissions
• 7% year-on-year drop in overall energy consumption
• 20.05% reduction in wastewater discharge compared to 2020
• Nearly 30% reduction in wastewater discharge density compared to 2020
• 7.78% reduction in total solid waste compared to the previous year

Social Achievements

• 100% training coverage for employees
• 153,741 total training hours (64.3 hours per person)
• RMB 1 million donated to Shihezi Children’s Home
• 36.5 tons of disinfectant donated to local companies and public service institutions
• Zero health & safety accidents reported

Governance Achievements

• Xinjiang Daqo successfully listed on the STAR Market of Shanghai Stock Exchange
• Improved risk management mechanism with 100% mitigation of short-term risks
• No corruption litigation cases reported
• Updated anti-fraud management system and whistleblower protection measures
• Implemented a three-tiered ESG management structure

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact
• Global economic situation
• International trade barriers
• Customer complaints regarding foreign objects and broken packages
• Ensuring supply chain stability

Mitigation Strategies

• Implemented comprehensive risk management measures
• Improved quality control measures for packaging and transportation
• Strengthened supplier management and digitization of supply chain
• Implemented 8D reports to address customer complaints
• Implemented various energy-saving retrofitting projects

Supply Chain Management

Supplier Audits: 74 suppliers assessed in 2021

Responsible Procurement

• Supplier Approval and Management System
• Qualified Supplier Management Policy
• Supplier Rating Policy
• Declaration on Protecting the Lawful Rights and Interests of Employees and Opposing Forced Labor
• Environmental protection-related regulations in procurement contracts
• Safety-related regulations in procurement contracts

Climate-Related Risks & Opportunities

Opportunities

• Growing demand for PV products due to global efforts to tackle climate change

Reporting Standards

Frameworks Used: GRI Standards Core Option

Certifications: ISO 9001/GB/T 19001:2016, ISO 14001, ISO 45001

Awards & Recognition

• Top 10 in the semiconductor material category of the 4th China Electronic Materials Industry Top Company List
• Top 50 in overall ranking of the 4th China Electronic Materials Industry Top Company List

Environmental Metrics

ESG Focus Areas

• Governance
• Social
• Environmental

Environmental Achievements

• 19.6% reduction in greenhouse gas emissions compared to 2021
• Four consecutive years of declining wastewater discharge
• 16.67% reduction in water consumption compared to 2021
• 57.5% increase in the use of recycled water compared to 2021
• 43.45% lower overall energy consumption than in 2018

Social Achievements

• National Technology Innovation Demonstration Enterprise
• Average of 110 training hours per employee
• 23,000 total employee volunteer service hours
• 259 total patents
• 100% employee training coverage
• RMB 3,684,700 in charitable donations

Governance Achievements

• Achieved 100% risk rectification rate
• Provided anti-corruption training to all employees
• Identified 12 highly material ESG issues
• Deepened sustainable development efforts based on the ESG governance structure

Climate Goals & Targets

Environmental Challenges

• Identified 6 categories of climate change risks to the Company
• Oversupply of high-purity polysilicon in 2023

Mitigation Strategies

• Implementing energy saving measures and reducing energy consumption across its entire production process
• Increasing production capacity and optimizing product quality through research and innovation
• Closely monitor severe weather forecasts and ensure timely warnings. Develop emergency plans to deal with the impact of unexpected severe weather events on production, transport, and the health and safety of employees.
• Conduct carbon inventory and product carbon footprint verification to confirm the scope of emissions and provide clarity as to the calculation methodology, emission sources, etc.

Supply Chain Management

Responsible Procurement

• Supplier Access and Management System
• Qualified Supplier Management Policy
• Supplier Rating Policy
• Procurement Management System
• Supplier Social Responsibility Questionnaire
• Declaration on Protecting the Legal Rights and Interests of Employees and Refusing Forced Labor

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions such as drought, heat, typhoons, and flooding
• Changes in temperature, rainfall patterns

Transition Risks

• Stricter emission compliance and disclosure requirements
• Risk of failure to meet market demand due to low-carbon technology transition
• Risk of increased financial burden due to surge in low carbon technology transition costs

Opportunities

• Increasing investment in new energy sources such as PV power generation
• Huge market demand for PV products

Reporting Standards

Frameworks Used: GRI Standards, Shanghai Stock Exchange Guidelines No. 1

Certifications: ISO 9001/GB/T 19001:2016, ISO 14001, ISO 45001

Awards & Recognition

• National Technology Innovation Model Enterprise
• National and Local Joint Engineering Laboratory for Photovoltaic Silicon Material Development Technology
• Smart PV Pilot Model Enterprise
• Inaugural List of Approved Green Manufacturing Models