Climate Change Data

Environmental Metrics

ESG Focus Areas

• Efficient Governance
• Product Excellence
• Green Responsibility
• Harmonious Development

Environmental Achievements

• Achieved the title of "National Green Factory"
• Carried out carbon footprint accounting and certification for UPS and grid-tied PV inverters
• Regularly accounted for GHG emissions and removals, with third-party audits
• Optimized energy storage converters, grid-tied PV inverters, data centers, and EV chargers to enhance product energy efficiency
• 1% reduction in comprehensive energy consumption, 2% reduction in comprehensive energy consumption per unit of output.

Social Achievements

• Created an equal and inclusive workplace
• Optimized talent structure with skilled professionals, competitive remuneration, and performance incentives
• Employees contributed approximately 2,478 hours in public welfare activities
• Investment in staff training over RMB 603,800; 31,063 people-times participated in the training

Governance Achievements

• Established a robust anti-corruption system and whistleblowing channels
• Nurtured an integrity culture
• Information disclosure rated A in the disclosure assessment

Climate Goals & Targets

Environmental Challenges

• Intensified market competition and rapid technology iteration
• Uncertainty in the market and external environment
• Complex laws in different countries and regions for global business
• Exchange rate fluctuation risk due to increasing overseas business
• Increasing accounts receivable and disputes over product sales contracts
• Climate-related physical risks (high temperature, typhoon, flood, sea-level rise) and transition risks (policy changes, technology shifts, market changes, reputational risks)

Mitigation Strategies

• Customer-centric strategies and product development
• Monitoring market trends and developing countermeasures
• Proactive risk assessments and preventive measures
• Hedging foreign exchange, fixed exchange rates in contracts, price negotiation
• Speeding up payment collection, enhancing credit assessment, legal protection
• Implementing refrigeration facilities, fire safety measures, emergency drills, multiple logistics plans, material reserves, equipment protection, and multi-regional suppliers
• Following policy developments, using low-energy equipment, green power, and carbon reduction projects
• Developing low-carbon products and services, exploring new technologies, and deploying greener supply chains

Supply Chain Management

Supplier Audits: 68 on-site assessments in 2023 (100% coverage)

Responsible Procurement

• Supplier Code of Conduct, Supplier Development and Management Specifications, Procurement Control Procedure, Supplier Performance Assessment and Grading Management Methods, Letter of Commitment for Suppliers, Agreement of Environmental Safety Management for General Stakeholders

Climate-Related Risks & Opportunities

Physical Risks

• High temperature, typhoon, rainstorm, flood, sea-level rise

Transition Risks

• Tightened carbon emission regulations, transition to low-carbon technologies, market shifts towards low-carbon products, reputational risks

Opportunities

• Use of clean energy, development of low-carbon products and services, deployment of greener supply chains

Reporting Standards

Frameworks Used: GRI Standards (2021), UN Sustainable Development Goals (SDGs), GB T36001 2015, Shenzhen Stock Exchange Guidelines

Certifications: ISO 9001, ISO 14001, ISO 45001, IECQ QC 080000, ISO 50001, ISO 27001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• YMK3300 Series Reserve Integrated UPS, MT Full-Frequency Intelligent Fluorine Pump Free-Cooling Precision Air Conditioner, 40kW SIC Charging Modules, PV All In One ESS

Awards & Recognition

• Numerous awards listed in the report (e.g., National Green Factory, various industry awards)