Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Acquired ISO14001:2004 Environmental Management System certifications at manufacturing sites.
• Implemented "Environmental Equipment Operation and Management System" to monitor emissions.
• Implemented "Environment, Occupational Health and Safety Operation Control Management Regulation" to monitor resource consumption.
• Installed geothermal heating and air conditioning systems in Yunnan site, reducing electricity and water consumption.
• Carried out retrofit projects to reduce energy consumption and increase production efficiency.

Social Achievements

• Acquired OHSAS18001:2007 Occupational Health and Safety Management System certifications at manufacturing sites.
• Established a production safety committee.
• Provided various employee benefits (subsidies, leaves, allowances).
• Implemented a staff development training and senior management training system.
• Complied with labor laws and regulations, including child and forced labor laws.

Governance Achievements

• Formulated "Anti-corruption System" with whistle-blowing procedures.
• Strict compliance with the Criminal Law of the PRC, no corruption litigation.

Climate Goals & Targets

Environmental Challenges

• Stringent PRC environmental laws and regulations could have a material adverse effect on financial condition and results of operations.

Mitigation Strategies

• Established "Environmental Equipment Operation and Management System", allocated resources to ensure environmental protection compliance.

Supply Chain Management

Responsible Procurement

• Fair and unbiased tender processes
• Standard procedures and policies (Fixed Assets Management System, Procurement Management System)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Appendix 27 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

Certifications: ISO14001:2004, OHSAS18001:2007, ISO9001:2008, ISO/TS16949:2009, IATF16949:2016

Awards & Recognition

• 2014–2015 Enterprise of Observing Contract and Valuing Credit
• 2014 – 2015 Voluntary Non-remunerated Blood Donation Advanced Collective
• Zhaotong City Social Property Alleviation Advanced Collective

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Achieved "zero emission" in manufacturing process due to closed-condition operation.
• Tesson New Energy (Weinan) Limited selected as a green factory demonstration company.
• Increased NMP recycling rate to around 99.5%.

Social Achievements

• Implemented people-oriented human resources policies.
• Applied principle of equal opportunities in recruitment.
• Offered competitive remuneration and benefit package.
• Provided various safety training and education programs.
• Implemented "Training Management System" to provide staff training and development.

Governance Achievements

• Established "Anti-corruption System" and whistle-blowing channels.
• Strict compliance with relevant laws and regulations regarding bribery, extortion, fraud and money laundering.

Climate Goals & Targets

Environmental Challenges

• Meeting increasingly stringent PRC environmental laws and regulations.
• Managing GHG emissions from energy consumption.
• Work-related injuries.

Mitigation Strategies

• Established environmental management system (ISO 14001:2004 accredited).
• Implemented energy-saving strategies (e.g., switching off unnecessary appliances, using energy-saving equipment).
• Implemented occupational health and safety management policies and systems (OHSAS 18001:2007 accredited).
• Regular safety training and education programs.

Supply Chain Management

Responsible Procurement

• Supplier selection based on criteria including financial status, reputation, product quality, production capacity, and production facilities.
• On-site inspection of suppliers.
• Preference for local suppliers to reduce carbon footprint.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Appendix 27 to the rules governing the listing of securities on The Stock Exchange of Hong Kong Limited

Certifications: ISO 14001:2004, OHSAS 18001:2007, ISO 9001:2008, ISO/TS 16949:2009

Awards & Recognition

• National Excellent Enterprise with Foreign Investment Quality Progress Award (2016-2017)
• 2017 ৯Г޲Ҧஔ௴อͪᇍΆุ
• یԯ̹Ⴉ֛ΆุҦஔʕː
• ৯Г޲Ⴉ֛ΆุҦஔʕː

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Achieved "zero emission" in the manufacturing process of lithium ion motive battery due to closed-condition operation.
• Recycling rate of NMP reached 98.5%.
• Tesson New Energy (Weinan) Limited was selected as the first batch of green factory demonstration company in 2017.
• Implemented various energy-saving strategies, including switching off unnecessary appliances and using energy-saving equipment.

Social Achievements

• Implemented people-oriented policies in human resources management, ensuring compliance with relevant labor laws and regulations.
• Established a production safety committee to oversee production safety and organize different safety programs for employees.
• Implemented “Training Management System” to provide a wide range of staff training and development.
• No material non-compliance in relation to health and safety laws and regulations during the reporting period.

Governance Achievements

• Established whistle-blowing channels to allow employees to report suspected cases of corrupt practice confidentially.
• Strict compliance with the Criminal Law of the PRC and other relevant laws and regulations relating to bribery, extortion, fraud and money laundering. No concluded legal cases regarding corrupt practices were brought against the Group or its employees during the reporting period.

Climate Goals & Targets

Environmental Challenges

• Increase in air pollutant emissions in 2019 mainly attributable to the increase in revenue generated from the Property and Cultural Business.
• Decrease in GHG emissions in 2019 mainly attributable to the decrease in revenue generated from Lithium Ion Motive Battery Business.

Mitigation Strategies

• Implemented “Vehicle Management System” to oversee vehicle use and increase vehicle efficiency.
• Adopted energy saving policy to reduce carbon footprint.
• Implemented various energy-saving strategies to reduce energy consumption.

Supply Chain Management

Responsible Procurement

• Supplier selection based on criteria including financial status, reputation, product quality, production capacity and production facilities.
• On-site inspection during supplier selection.
• Preference for local suppliers to reduce carbon footprint.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Appendix 27 to the rules governing the listing of securities on The Stock Exchange of Hong Kong Limited, GRI Guidelines

Certifications: ISO 14001:2004, OHSAS 18001:2007, ISO 9001:2008, ISO/TS 16949:2009

Awards & Recognition

• 2018 年陝西省科學技術獎
• 2018年陝西省智慧製造試點示範企業
• 渭南高新區2018年度科技創新突出貢獻企業
• 2018 年渭南市科學技術獎
• 2018年江蘇省國家級高新技術企業
• 2018年江蘇省工程技術研究中心
• 2018年度統計工作先進單位

Environmental Metrics

ESG Focus Areas

• Emissions
• Use of Resources
• The Environment and Natural Resources
• Employment
• Health and Safety
• Development and Training
• Labour Standards
• Supply Chain Management
• Product Responsibility
• Anti-corruption
• Community Investment

Environmental Achievements

• Achieved "zero emission" in manufacturing process due to closed-condition operation.
• Recycling rate of NMP reached 98.5%.
• Implemented various energy-saving strategies, including switching off unnecessary appliances and using energy-saving equipment.
• Implemented water-saving strategies, resulting in decreased water consumption.
• Tesson New Energy (Weinan) Limited was selected as the first batch of green factory demonstration company in 2017.

Social Achievements

• Implemented people-oriented policies in human resources management, ensuring compliance with relevant labour laws and regulations.
• Offered competitive remuneration and benefit packages to employees.
• Established a production safety committee to oversee production safety and organize different safety programs.
• Implemented "Training Management System" to provide staff training and development.
• Upholds human rights and supports effective abolition of child or forced labour.

Governance Achievements

• Established a whistle-blowing channel to allow employees to report suspected cases of corrupt practice confidentially.
• Strict compliance with the Criminal Law of the PRC and other relevant laws and regulations relating to bribery, extortion, fraud and money laundering.

Climate Goals & Targets

Environmental Challenges

• Reduced usage of petrol-consuming vehicles and commencement of electric vehicle use during the year.
• Increase in GHG scope 2 emissions due to increased revenue from Lithium Ion Motive Battery Business.

Mitigation Strategies

• Implemented "Vehicle Management System" to oversee vehicle use and increase vehicle efficiency.
• Adopted energy saving policy to reduce carbon footprint.
• Implemented various energy-saving strategies.
• Implemented water-saving strategies.

Supply Chain Management

Responsible Procurement

• Supplier selection based on criteria including financial status, reputation, product quality, production capacity and production facilities.
• On-site inspection during supplier selection.
• Preference for local suppliers to reduce carbon footprint.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Appendix 27 to the rules governing the listing of securities on The Stock Exchange of Hong Kong Limited, Global Reporting Initiative (GRI) Guidelines

Certifications: ISO 14001:2004, OHSAS 18001:2007, ISO 9001:2008, ISO/TS 16949:2009

Awards & Recognition

• 2018 awards and recognitions for Tesson New Energy (Weinan) Limited and Tesson New Energy Research (Nanjing) Limited

Environmental Metrics

ESG Focus Areas

• Emissions
• Use of Resources
• Environment and Natural Resources
• Climate Change
• Employment
• Health and Safety
• Development and Training
• Labour Standards
• Supply Chain Management
• Product Responsibility
• Anti-corruption
• Community Investment

Environmental Achievements

• Achieved "zero emission" in manufacturing process due to closed-condition operation.
• 98.8% recycling rate of NMP (2020: 98.5%).
• Tesson New Energy (Weinan) Limited selected as a green factory demonstration company in 2017.
• Implemented various energy-saving strategies, including switching off unnecessary appliances and using energy-saving equipment.

Social Achievements

• Implemented people-oriented policies in human resources management, ensuring compliance with relevant labor laws and regulations.
• Applied principle of equal opportunities in recruitment.
• Offered competitive remuneration and benefit package to employees.
• Provided a wide range of staff training and development programs.

Governance Achievements

• Established a dedicated safety and environmental protection department (ESG Working Group) to implement specific safety and environmental protection work.
• Conducted materiality assessment each year to understand stakeholders' opinions and expectations on ESG issues.
• Implemented an Anti-corruption System, with whistle-blowing channels for reporting suspected cases of corrupt practice.

Climate Goals & Targets

Environmental Challenges

• Increased usage of petrol-consuming vehicles in the Lithium Ion Motive Battery Business leading to increased air pollutant and GHG emissions.
• Increased revenue from Lithium Ion Motive Battery Business leading to increased energy and water consumption.
• Potential damage to machinery and equipment due to increased severity and frequency of extreme weather events.
• Disruptions to communities and business productivity due to changes in precipitation patterns and extreme weather variability.
• Higher raw material procurement and production costs due to carbon pricing mechanisms.
• Potential litigation risk due to tightened environmental laws and regulations.
• Need to adapt to low-carbon, energy-saving technologies to maintain competitive edge.
• Changes in customer preference due to increased concern about climate-related risks.
• Risk of stigmatization of the business sector due to stakeholder concerns.

Mitigation Strategies

• Established a natural disasters emergency plan.
• Developed an action plan to reduce GHG emission and energy consumption.
• Planned improvements, retrofits, relocations to reduce vulnerability to climate impacts.
• Recorded energy consumption to identify peaks in usage and implement savings.
• Engaged with local/national governments and stakeholders on local resilience.
• Conducted a carbon footprint survey to prioritize energy and waste reductions.
• Monitored updates of environmental laws and regulations.
• Invested in innovations of energy-saving products.
• Examined the feasibility of applying low-carbon and energy-saving technologies.
• Prioritized climate change in market decisions.
• Organized public relation activities to show importance on climate change.
• Reviewed business projects to ensure environmental friendliness.

Supply Chain Management

Supplier Audits: 40 suppliers (2020: 30 suppliers)

Responsible Procurement

• Supplier selection based on financial status, reputation, product quality, production capacity and facilities.
• On-site inspection during selection process.
• Preference for suppliers with environmental, quality and social certifications (e.g., ISO 14001, ISO 9001).
• Preference for local suppliers to reduce carbon footprint.

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity and frequency of extreme weather events.
• Changes in precipitation patterns and extreme variability in weather patterns.

Transition Risks

• Carbon-pricing mechanisms increasing the price of fossil fuels.
• Exposure to litigation risk due to tightened environmental regulations.
• Low-carbon, energy-saving technologies weakening competitive edges.
• Changes in customer preference due to climate-related concerns.
• Risk of stigmatization of the business sector.

Opportunities

• Resource efficiency gains through efficient transport, production, and distribution processes.
• Use of lower-emission energy sources and supportive policy incentives.
• Development of climate adaptation and insurance risk solutions.
• Access to new markets.

Reporting Standards

Frameworks Used: Appendix 27 to the rules governing the listing of securities on The Stock Exchange of Hong Kong Limited, GRI Guidelines

Certifications: ISO 14001:2004, OHSAS 18001:2007, ISO 9001:2015, ISO 14001:2015, ISO 45001:2018

Awards & Recognition

• Selected as the first batch of green factory demonstration company in 2017.

Environmental Metrics

ESG Focus Areas

• Emissions
• Use of Resources
• Environment and Natural Resources
• Climate Change
• Employment
• Health and Safety
• Development and Training
• Labour Standards
• Supply Chain Management
• Product Responsibility
• Anti-corruption
• Community Investment

Environmental Achievements

• Achieved "zero emission" in manufacturing process due to closed-condition operation.
• Recycling rate of NMP at 98.8%.
• Tesson New Energy (Weinan) Limited selected as a green factory demonstration company in 2017.
• Implemented various energy-saving strategies, including switching off unnecessary appliances and using energy-saving equipment.

Social Achievements

• Implemented people-oriented policies in human resources management, ensuring compliance with relevant labor laws and regulations.
• Offered competitive remuneration and benefit packages to employees.
• Provided various staff training and development programs, including environmental management, health and safety, and corporate governance training.
• Established whistle-blowing channels to allow employees to report suspected cases of corrupt practice confidentially.

Governance Achievements

• Board of directors oversees climate-related issues and risks regularly.
• Established a dedicated safety and environmental protection department (ESG Working Group) to implement specific safety and environmental protection work.
• Conducted materiality assessment each year to understand stakeholders' opinions and expectations on ESG issues.

Climate Goals & Targets

Environmental Challenges

• Increased severity and frequency of extreme weather events.
• Changes in precipitation patterns and extreme variability in weather patterns.
• Energy efficiency requirements and carbon-pricing mechanisms by the PRC Government.
• Exposure to litigation risk due to tightened laws and regulations.
• Low-carbon, energy-saving technologies advancement.
• Changes in customer preference due to climate-related concerns.
• Risk of stigmatization of the business sector.

Mitigation Strategies

• Established a natural disasters emergency plan.
• Developed an action plan to articulate the goals and targets of GHG emission and energy consumption reductions.
• Planned improvements, retrofits, relocations, or other changes to facilities to reduce vulnerability to climate impacts.
• Conducted a carbon footprint survey to prioritize energy and waste reductions.
• Monitored updates of relevant environmental laws and regulations.
• Invested in innovations of energy-saving products.
• Examined the feasibility and benefits of applying the latest low-carbon and energy-saving technologies.
• Fulfilled climate-related regulations.
• Prioritized climate change as a high concern in market decisions.
• Organized public relation activities to show importance on climate change.
• Reviewed business projects to ensure environmental friendliness.

Supply Chain Management

Supplier Audits: 200 suppliers in the PRC

Responsible Procurement

• Supplier selection based on financial status, reputation, product quality, production capacity and production facilities.
• On-site inspection during selection process.
• Preference for local suppliers to reduce carbon footprint.

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity and frequency of extreme weather events.
• Changes in precipitation patterns and extreme variability in weather patterns.

Transition Risks

• Carbon-pricing mechanisms by the PRC Government.
• Exposure to litigation risk.
• Low-carbon, energy-saving technologies advancement.
• Changes in customer preference.
• Risk of stigmatization.

Opportunities

• Resource efficiency gains.
• Use of lower-emission sources of energy.
• Development of climate adaptation and insurance risk solutions.
• Access to new markets.
• Increased resilience.

Reporting Standards

Frameworks Used: Appendix 27 to the rules governing the listing of securities on The Stock Exchange of Hong Kong Limited, GRI Guidelines

Certifications: ISO 14001:2004, OHSAS 18001:2007, ISO 9001:2015, ISO 14001:2015, ISO 45001:2018

Awards & Recognition

• 2022 “Shaanxi Provincial Key New Product Development Project” Certification

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Achieved "zero emission" in manufacturing process due to closed-condition operation.
• Tesson New Energy (Weinan) Limited selected as a green factory demonstration company in 2017.
• 99.1% recycling rate of NMP in 2023.
• Implemented various energy-saving strategies, including switching off unnecessary appliances and using energy-saving equipment.

Social Achievements

• No non-compliance related to employment or health and safety.
• Implemented people-oriented policies in human resources management.
• Provided competitive remuneration and benefit package.
• Offered various staff training and development programs.

Governance Achievements

• Board oversees climate-related issues and risks regularly.
• Established ESG Working Group to review and supervise ESG process and risk management.
• Conducted materiality assessment annually to understand stakeholder opinions and expectations.

Climate Goals & Targets

Environmental Challenges

• Increased air pollutant emissions in 2023 due to increased production volume and vehicle use.
• Increased GHG scope 1 and 2 emissions in 2023 due to increased production volume and vehicle use.
• Potential damage to machinery and equipment due to extreme weather events.
• Disruptions to communities and business productivity due to changes in precipitation patterns and extreme weather variability.
• Increased operating costs due to energy efficiency requirements and carbon-pricing mechanisms.
• Exposure to litigation risk due to tightened environmental regulations.
• Increased capital investment and R&D expenses due to low-carbon technology advancements.
• Changes in customer preference and potential revenue decrease due to climate-related concerns.
• Risk of stigmatization and negative stakeholder feedback.

Mitigation Strategies

• Established a natural disasters emergency plan.
• Developed an action plan to reduce GHG emissions and energy consumption.
• Planned improvements, retrofits, and relocations to increase climate resilience.
• Recorded energy consumption to identify peaks in usage and implement savings.
• Engaged with local and national governments and stakeholders on local resilience.
• Conducted a carbon footprint survey to prioritize energy and waste reductions.
• Monitored updates of environmental laws and regulations.
• Invested in innovations of energy-saving products.
• Examined the feasibility of applying low-carbon technologies.
• Fulfilled climate-related regulations.
• Prioritized climate change in market decisions.
• Organized public relation activities to show concern for climate change.
• Reviewed business projects to ensure environmental friendliness.

Supply Chain Management

Supplier Audits: 200 suppliers

Responsible Procurement

• Supplier selection based on financial status, reputation, product quality, production capacity, and facilities.
• On-site inspection during supplier selection.
• Preference for local suppliers to reduce carbon footprint.

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity and frequency of extreme weather events.
• Changes in precipitation patterns and extreme weather variability.

Transition Risks

• Increased operating costs due to energy efficiency requirements and carbon pricing.
• Exposure to litigation risk due to tightened environmental regulations.
• Low-carbon technology advancements.
• Changes in customer preference.

Opportunities

• Resource efficiency gains.
• Use of lower-emission energy sources.
• Development of climate adaptation and insurance risk solutions.
• Access to new markets.

Reporting Standards

Frameworks Used: Appendix C2 to the rules governing the listing of securities on The Stock Exchange of Hong Kong Limited, GRI Guidelines

Certifications: ISO 14001:2004, OHSAS 18001:2007, ISO 9001:2015, ISO 14001:2015, ISO 45001:2018

Awards & Recognition

• 2022 Shaanxi Provincial Key New Product Development Project Certification