Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Developed and implemented various environmental protection measures, including energy management, photovoltaic power generation projects, water pollution control, air pollution control, solid waste management, noise control, and hazardous chemical management.
• Invested 312.46 million yuan in environmental protection in 2019.

Social Achievements

• Implemented employee well-being programs, including competitive salaries, benefits, and training opportunities.
• Maintained a 100% social insurance coverage rate.
• Achieved an employee satisfaction score of 87.43.
• Supported community development through initiatives like photovoltaic poverty alleviation projects and donations to fight the COVID-19 pandemic.

Governance Achievements

• Established a social responsibility (CSR) governance committee.
• Implemented a comprehensive risk control system.
• Maintained compliance with relevant laws and regulations.
• Implemented anti-corruption measures and training.

Climate Goals & Targets

Environmental Challenges

• Intensified market competition in the data center and new energy industries.
• Uncertainty in the development direction of the industries.
• Impact of the COVID-19 pandemic on the global economy.

Mitigation Strategies

• Focus on customer needs and providing high-quality products and services.
• Continuous improvement of ESG management.
• Risk assessment and mitigation strategies.

Supply Chain Management

Supplier Audits: 100% of key suppliers underwent CSR assessments; 93.1% underwent on-site audits.

Responsible Procurement

• Supplier Code of Conduct
• Sustainable procurement training for procurement personnel
• Inclusion of environmental, labor, and human rights requirements in contracts

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and solutions.

Reporting Standards

Frameworks Used: GRI, ISO 26000, UN Global Compact

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

Sustainable Products & Innovation

• Energy-efficient UPS systems
• Photovoltaic inverters
• Electric vehicle charging stations
• Energy storage systems

Awards & Recognition

• Numerous awards related to product innovation, service excellence, and environmental protection.

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced GHG emissions to 17,647 tCO2e in 2021
• Implemented various energy-saving measures, including replacing lead-containing solder with lead-free solder, constructing rooftop photovoltaic power stations, and upgrading the SK workshop's aging process.
• Achieved significant water savings through upgrading the charging pile rain test.

Social Achievements

• Maintained 100% social security coverage for employees.
• Achieved 95.16% employee satisfaction.
• Invested 50.4 million yuan in employee training.

Governance Achievements

• Established a comprehensive corporate governance structure.
• Consistently received an A rating in Shenzhen Stock Exchange's information disclosure assessment for nine consecutive years.
• Implemented robust anti-corruption measures and a whistleblower system.

Climate Goals & Targets

Environmental Challenges

• Global supply chain disruptions, particularly for key components.
• Significant impact on photovoltaic inverter business due to rising silicon prices.
• Challenges in the electric vehicle charging pile business due to market competition.

Mitigation Strategies

• Active adjustments to supply chain and delivery issues.
• Strengthened development of high-power module products in the charging pile business.
• Implemented a major operating indicator risk warning mechanism to mitigate risks.

Supply Chain Management

Responsible Procurement

• Supplier social responsibility and EHS management
• Requirement for suppliers to comply with RoHS2.0, ISO 45001, and ISO 14001
• Conflict minerals policy

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI-2021 (Core), CASS-ESG 5.0

Certifications: ISO 14001, ISO 45001, IECQ QC080000

UN Sustainable Development Goals

• SDG 7 (Affordable and Clean Energy)
• SDG 9 (Industry, Innovation, and Infrastructure)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)

Kstar's initiatives contribute to these SDGs through energy efficiency improvements, sustainable product development, waste reduction, and carbon emission reduction.

Sustainable Products & Innovation

• Lead-free solder
• Energy-efficient UPS
• Energy-efficient photovoltaic inverters
• Energy-efficient air conditioners
• Energy-efficient charging piles
• Energy storage systems

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Compliance and risk management
• Business ethics
• Sustainability management
• Product quality and safety
• Customer service
• Sustainable supply chains
• Industry cooperation and development
• Digital transformation
• Development of green products and clean technologies
• Protection of intellectual property rights
• Information security and privacy protection
• Climate change
• Energy management
• Waste and pollutant management
• Water management
• Biodiversity conservation
• Protection of employees' rights and interests
• Occupational health and safety
• Employee training and development
• Employee compensation and benefits
• Community welfare

Environmental Achievements

• Purchased 200,000 kWh of green electricity
• Constructed rooftop photovoltaic projects and ground power station projects generating 57,770,000 kWh
• Recycling rate of industrial solid waste exceeded 90%
• Guangming Plant recognized as a "National Green Factory"
• ISO 14001 environmental management system certification obtained
• 2% reduction in comprehensive energy consumption per unit of output by 2025
• 1% reduction in comprehensive energy consumption by 2025
• Saved 3,000 cubic meters of water per year through automatic upgrading of rain test facilities
• Saved more than 50,000 cubic meters of water per year through water circulation optimization project
• PCF Certification of UPS Products
• PCF Certification of Grid-connected Solar PV Inverters

Social Achievements

• Domestic customer satisfaction scores above 90 points
• National five-star certification of “Evaluation System for After-sales Service of Commodities” obtained
• ISO 27001 information security management system certification obtained
• 100% on-site assessment compliance rate for suppliers
• Green supply chain certification (five-star rating) obtained
• Consecutively obtained the green packaging management system certification
• 100% compliance with requirements on hazardous substances by suppliers
• 100% of suppliers signed the Letter of Commitment for Suppliers
• Invested USD 85,902 in employee training, with 31,063 participants
• More than 23,000 trainees, nearly 500 training sessions, and more than 64,000 training hours
• 100% of employees covered by training learning platforms
• 280 education training sessions on work safety, with 17,092 participants
• Regular stress and emotion management training, and psychological stress relief activities
• 2,478.36 service hours of charitable and volunteer activities

Governance Achievements

• Established a three-tiered ESG management system
• Organized 14 on-site surveys, 2 online performance report meetings, answered 247 investor questions, attended more than 20 underwriter strategy exchange meetings, had an average of 2 calls per day through investor hotline, issued 4 regular reports and 110 temporary announcements
• Established a risk control system covering decision-making body, supervision body and executive body
• No violation of business ethics in 2023
• 100% of Branches and subsidiaries signed a Letter of Commitment for Suppliers
• ISO 9001, ISO 14001, ISO 45001, and IECQ QC 080000 certifications obtained

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: 100% on-site assessment compliance rate

Responsible Procurement

• Supplier Code of Conduct
• ISO 9000 and ISO 14000 standards as minimum entry criteria
• Letter of Commitment for Suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO 9001, ISO 14001, ISO 45001, IECQ QC 080000, ISO/IEC 27001:2022, ISO 50001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Actively respond to the United Nations Sustainable Development Goals (SDGs)

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 2023 ESG Most Valuable Brand Award
• 7th batch of "National Green Factories"
• Best Employer Award 2021
• Linkedin Raising Star 2023