Climate Change Data

Environmental Metrics

ESG Focus Areas

• Technology for Goodwill
• Integrity and Compliance
• Green and Low-Carbon Development
• Harmonious Co-existence

Environmental Achievements

• Purchased 32,852 MWh of green electricity and generated 4,508.3 MWh of power via photovoltaic units.
• Achieved 100% compliance in wastewater, waste gas, solid waste, and chemicals disposal and discharge/emission.
• Reduced plastic use by 27.9 tons by changing cushioning and lining material.
• Reduced carbon emissions by 767 tons per year through packaging reduction.
• Received ISO 14064 Greenhouse Gas Accounting and Verification Certification.
• Awarded 2022 Green and Low-carbon Factory in Zhejiang Province and Hangzhou City.

Social Achievements

• 100% coverage rate of collective contracts at Hangzhou headquarters.
• RMB 17.226 million invested in employee training (1,871,700 training hours).
• No occupational disease cases or work-related fatalities.
• Launched a variety of cultural activities to foster employee cohesiveness and creativity.
• Joined the Asian Games Football Dream program, supporting youth football development.

Governance Achievements

• Established a corporate governance framework consisting of “three defenses” and “one ecosystem”.
• Published the Hikvision Whistleblowing Policy.
• 99.54% of staff signed the Employee Integrity Commitment.
• 43 compliance training sessions delivered (80 training hours, 50,000 participants).
• Received Business Continuity Management System Certification.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to market changes and requirements for customization, fast delivery, high quality, and low cost.
• Ever-changing cybersecurity challenges.
• High energy consumption and low efficiency in computer rooms.
• Further sanctions and market access pressure from the US.
• FCC ban on new product authorizations.

Mitigation Strategies

• Formed a project team to optimize value flow and end-to-end procedures in the supply chain, reducing average delivery cycle by 50%.
• Established specialized organizations and a cybersecurity management system, receiving ISO/IEC 27701:2019 and ISO/IEC 29151:2017 certifications.
• Developed a sophisticated, high-efficiency cooling solution for computer rooms.
• Maintained communication and dialogue with relevant government departments and stakeholders to address US sanctions.
• Submitted complaints, legislative opinions, and a petition for review with the U.S. Court of Appeals.

Supply Chain Management

Supplier Audits: 100% of new suppliers evaluated using environmental and social criteria.

Responsible Procurement

• Standards of Supplier Development and Selection Management
• Procurement Framework Agreement
• Supplier Corporate Social Responsibility Commitment

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, Shenzhen Stock Exchange Social Responsibility Instructions

Certifications: ISO 14001, ISO 50001, ISO 14064, ISO 45001, ISO/IEC 27701:2019, ISO/IEC 29151:2017, ISO/IEC 27001:2013

Sustainable Products & Innovation

• LED Pro series displays
• Cameras with plastic-clad aluminum enclosures

Awards & Recognition

• Most Socially Responsible Listed Company of 2022
• China ESG Golden Awards – 2022 Outstanding Social (E) Responsibility Award
• 2021-2022 Most Respected Enterprise in China
• 2022 Green and Low-carbon Factory in Zhejiang Province and Hangzhou City

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Product Responsibility
• Environmental Responsibility
• Employee Responsibility
• Partner Responsibility
• Community Responsibility

Environmental Achievements

• 12,533.7 MWh of power generated via photovoltaics
• 100% compliance in wastewater, waste gas, solid waste, and chemicals disposal
• Chongqing production base won the title of "National Green Plant", "Chongqing Environmental Protection Honest Enterprise", and "Chongqing Demonstration Plant of Digital and Green Transition"
• ISO 14064 Greenhouse Gas Accounting and Verification certified
• Carbon footprint certifications for Network Camera, Smart Identity Recognition Terminal, LCD, and LED products
• De-plasticized packaging by 46.2 tons in 2023
• Reduced carbon emissions by 15 tons by the end of 2023 through biodegradable alternatives
• Reduced carbon emissions by over 200 tons in 2023 through packaging volume minimization

Social Achievements

• 100% coverage rate of collective contracts at the Hangzhou headquarters
• RMB 15.08 million invested in employee training
• 1,534,482 training hours spent in employee training, with an average of 26.2 training hours per employee
• Zero occupational disease cases
• 100% of new suppliers evaluated using environmental and social criteria
• 100% coverage of conflict minerals due diligence on new suppliers
• Over 12,785 supplier training attendances and over 293,309 distributor training attendances

Governance Achievements

• Established a sound system for compliance management and risk control
• 99.82% of staff signed the Employee Integrity Commitment
• Released the Hikvision Global Human Rights Policy
• Officially joined the United Nations Global Compact (UNGC)

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Market risks due to changes in market demand
• ESG risks for the supply chain
• Legal and compliance risks
• Financial risks (tax risk, related party transactions)
• Operational risks (quality risk, data security risk, production risk, occupational health risk, environmental pollution risk)

Mitigation Strategies

• Established a supply chain continuity working group
• Digital transformation of the supply chain
• Building multiple bases and logistics centers
• Demanding suppliers to comply with Hikvision's Supplier Code of Ethics and Business Conduct
• Implementing a triple-layer risk management mechanism
• Formulating and improving the Hikvision Tax Risk Management Policy
• Establishing a comprehensive tax risk management mechanism
• Establishing systematic quality risk management procedures and manuals
• Using a unified, integrated security infrastructure
• Issuing the Safety Inspection and Hazard Management Standards
• Administratively clarifying responsibilities and defining job responsibilities for occupational disease prevention
• Following regulations to properly store raw materials and dispose of waste

Supply Chain Management

Supplier Audits: 100% of new suppliers

Responsible Procurement

• Supplier Code of Ethics and Business Conduct
• Supplier Corporate Social Responsibility Commitment
• Supplier Integrity Agreement
• Responsible Minerals Initiative (RMI) independent third-party verification system

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB, UNGC

Certifications: ISO 9001, ISO 14064, ISO 20000, ISO 27001, ISO 27701, ISO 29151, ISO 38505, ISO 45001, UL2809

Sustainable Products & Innovation

• Low-power, high-efficiency components
• Lightweight, recyclable materials
• Eco-friendly chemical processes
• Ocean-recycled materials in EZVIZ vacuum cleaners

Awards & Recognition

• National Excellent Engineering Team
• Fifth China Quality Award
• 1st Place of the Zhejiang Science and Technology Progress Award
• 17th Outstanding Intelligent Enterprises of Listed Companies in China
• Top 100 Benchmark Smart Factories in China
• 27th of Top 500 List of Digital Economy Enterprises in China
• 13th of Top 500 New Economy Enterprises for 2022 in China
• Exemplary Enterprise with National Product and Service Quality Integrity
• Top 100 Electronic Information Competitiveness Enterprises in 2023 in China
• 2023 Excellent Software Product Certificate in China
• Best Case of Corporate Governance in 2023
• May Day Labor Award of Zhejiang Province
• 2022 Listed Company Market Value Ranking Prize – Top 50 of the Most Popular Listed Companies selected by Institutional investors
• 2022 Listed Company Market Value Ranking Prize – Top 5 of the technology hardware and equipment industry
• 17th Annual Leading Figure of Chinese Listed Companies Award
• Outstanding Board Secretary of Chinese Listed Companies Award
• Best Institutional Investor Relations (IR) Team of 2023 Award
• Advanced Collective of Hangzhou Asian Games, Asian Paralympic Games
• Rural Vitalization Award
• 2023 ESG Pioneer 50 of Listed Companies in China
• Exemplary CSR Award
• Outstanding case of ESG practice in the "Golden Intelligence Competition"
• People's Ingenuity Brand Award
• Best Brand Award for 2023
• Top 100 Brand Value List of Chinese Listed Companies for 2023
• Brand Value Leader
• National Product and Service Quality Integrity Brand
• 2023 Carbon Neutrality Digital Pioneer Award
• 2023 Carbon Neutrality Pioneer Enterprise
• 2023 Carbon Neutrality Chief Climate Officer
• Five-Star Green Supply Chain Evaluation for Disk Storage
• Excellent Digital Intelligence Service Provider for 2023 LOG Low Carbon Supply Chain Logistics
• 2023 Five-Star Green Supply Chain Evaluation for Security Camera
• 2023 Green Manufacturing Model Award
• National Green Plant
• Environmental Protection Integrity Enterprise in Chongqing
• Demonstration Plant of Coordinated Digital and Green Transition and Development in Chongqing
• Blue Sky Cup Excellent Engineering Award
• Reliable Digital Plant Golden Award
• Best AI Security Vendor of the Year Award
• AI Security Innovator of the Year Award

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Geopolitical risks
• Global economic downside risks
• Risks of domestic economic structural transformation
• Supply chain risks
• Technology upgrading risks
• Risks of internal management
• Legal and compliance risks
• Risks of exchange rate fluctuations
• Financial risks caused by customers' reduced ability to pay
• Risks of cybersecurity
• Risks of intellectual property (IP) rights

Mitigation Strategies

• Strengthened risk control and response capabilities, flexible resource adjustment
• Wide business layout to disperse risk
• Empowering digital transformation with AIoT technologies
• Developing a diversified supply network and adjusting inventory
• Closely tracking cutting-edge technologies and maintaining business innovation
• Accumulating management experience through system development and talent cultivation
• Strengthening the legal compliance system
• Using appropriate financial instruments to reduce risks
• Accumulating cash reserves and maintaining low financing costs
• Emphasizing cybersecurity and enhancing the security of products and systems
• Maintaining considerable investment in R&D and implementing robust IP protection measures

Supply Chain Management

Climate-Related Risks & Opportunities