Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Lean Innovation
• Low Carbon Leadership
• Responsible Ecology
• Talent Development
• Green Operations

Environmental Achievements

• Implemented several energy-saving and emission-reduction initiatives, encompassing equipment intelligence upgrades, digital and refined energy management, and optimization of high-energy-consumption processes.
• Newly constructed Yueyang factory adheres to green, low-carbon, and digital factory standards, incorporating clean energy sources to optimize our energy consumption structure.
• Reduced the coal consumption per kilowatt-hour of power plants, lowered the entire plant power consumption by 0.3~0.5% or more, and achieves a comprehensive power saving rate of over 20%.

Social Achievements

• Launched the “My INOVANCE” App to provide comprehensive online marketing and after-sales services.
• Value employee rights and well-being, fostering a positive work environment and offering a competitive development platform.
• Suzhou INOVANCE Cable Workshop was honored with the title of “Women’s Civilization Post” in Suzhou City.

Governance Achievements

• Established a top-down ESG governance structure.
• Incorporated ESG performance indicators into the management’s remuneration system.
• Formulated and updated the INOVANCE Decision-Making System for Connected Transactions.

Climate Goals & Targets

Environmental Challenges

• Heightened geopolitical tensions and global instability significantly impacting the established international economic order.
• Rising global energy prices, disrupted energy supply chains, and threatened energy security.
• Global climate crisis posing a significant challenge to the Paris Agreement’s 2°C target.

Mitigation Strategies

• Implemented several energy-saving and emission-reduction initiatives.
• Developed alternative sourcing strategies.
• Established a sound risk-management framework.

Supply Chain Management

Supplier Audits: 100% coverage of ESG audits for new suppliers

Responsible Procurement

• Code of conduct
• Supplier sustainability requirements
• Conflict-Free Sourcing Initiative (CFSI)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Sea level rise
• Public health emergencies

Transition Risks

• Climate-related disclosure regulations
• GHG emissions control and management
• Changes in customer behavior
• Energy-saving and carbon reduction technology falling behind market demands

Opportunities

• Growing demand for environmentally friendly and low-carbon products and services
• Opportunities for expanding customer base and developing innovative products
• Reduction in fossil fuel dependence and increase in clean energy utilization

Reporting Standards

Frameworks Used: Shenzhen Stock Exchange (SZSE) Guidelines, GRI, ISSB IFRS S1, UN SDGs

Certifications: ISO 14001, ISO 9001, ISO 45001, GB/T 29490-2013

Third-party Assurance: Third-party assurance provider for GHG inventory (Scope 1 & 2)

UN Sustainable Development Goals

• Goal 7
• Goal 9
• Goal 12
• Goal 13
• Goal 16
• Goal 17

The six dimensions of ESG strategy are aligned with these SDGs.

Sustainable Products & Innovation

• Energy storage products
• Energy-efficient PM motors
• High-efficient AC drives
• Electric vehicle controller and motor
• Off-shore power systems

Awards & Recognition

• Selected into S&P Global’s first Sustainability Yearbook 2022 (China Edition)
• ESG Model Enterprise Award
• ESG Pioneer Listed Company Award
• 2023 Sustainable Development Model Enterprise Award
• 2023 Easy-Board ESG+8 “Value 100”