Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• R&D Innovation
• Products and Services
• Supply Chain Management
• Employee Care
• Environmental Protection
• Social Welfare

Environmental Achievements

• Reduced electricity consumption by 3.20% in 2021 despite increased polysilicon production.
• Achieved a year-on-year decrease in comprehensive energy consumption of coal, electricity and other energy sources.
• Reduced water consumption per unit of polysilicon production year-on-year through wastewater recycling.
• Reduced packaging damage to less than 3% through vacuum sealing technology.
• Achieved 100% recycling rate for solid wastes generated by its self-contained power plants.
• Reduced pollutant emissions below Chinese emission standards, earning the “outstanding contribution unit for pollution control” award.

Social Achievements

• Zero material corruption-related litigations in 2021.
• 100% issue addressing rate for 15 customer feedback issues.
• Customer satisfaction rate increased by 2 percentage points year-on-year.
• Zero work-related fatalities and zero lost work days due to major work-related injuries from 2019-2021.
• No major accidents or punishments for occupational health and safety violations.
• Zero cases of sold or delivered products needing recall for safety and health reasons.
• No major labor disputes, child labor, forced labor, or discrimination cases in 2021.
• On-time employee payment with no delays or non-payments.

Governance Achievements

• Established an ESG Committee for managing ESG-related issues.
• Implemented a compliance management system with daily consultation, review, training, and improvement feedback.
• Conducted 15 customized integrity training sessions for all employees and provided recorded videos to suppliers.
• Launched “Month of Integrity” activities, including educational films, court trial visits, and integrity interviews with over 5,000 employees.
• Expanded internal and external complaint and whistleblowing channels.

Climate Goals & Targets

Environmental Challenges

• Potential impacts of climate change on new energy project site selection, construction, power plant operation, and project safety.
• Difficulty obtaining water for power plant construction in desert areas and photovoltaic projects in mountainous areas.

Mitigation Strategies

• Research and analysis of future climate change impacts and deployment of countermeasures and solutions.
• Design optimization of projects to enhance adaptability to severe weather.
• Integration of data from meteorological sources to predict meteorological disasters and formulate a risk management system.
• Collection of rainwater and groundwater for concrete mixing and maintenance in water-scarce areas.
• Investment in advanced sewage treatment and recycling project for water reuse.

Supply Chain Management

Supplier Audits: Annual evaluation of suppliers, categorized into A/B/C/D.

Responsible Procurement

• Compliance with laws, regulations, and code of conduct.
• Requirement for suppliers to provide safety and technological specifications of hazardous materials.
• Requirement for suppliers to develop and provide environmentally friendly products and services.
• Requirement for suppliers to identify and control risks related to environmental and occupational health and safety.

Climate-Related Risks & Opportunities

Physical Risks

• Heavy rain, frost, sandstorm, extreme low and high temperature weather

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

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

Certifications: ISO 9001, ISO 14001, ISO 45001 (mentioned in relation to supplier management)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• High-purity polysilicon, inverters, SVGs, energy routers, flexible DC converter valves

Awards & Recognition

• Advanced unit in green development (Ganquanpu Economic and Technological Development Zone)
• Excellent circular economy enterprise
• Only demonstration unit in Xinjiang with “green engineering”, “green design product” and “green supply chain” honors
• Most Influential Photovoltaic Inverter Enterprise — Iron Armor Award for Efficiency and Reliability
• Most Influential EPC Enterprise
• Global Top Photovoltaic Brand Award
• Power Plant EPC Brand Value Award
• Brand Value Award for Inverters
• Outstanding/Excellent EPC Enterprise Award 2021
• Outstanding Photovoltaic Intelligent O&M Service Provider 2021
• High-quality Photovoltaic Inverter Enterprise Award
• Advanced Unit for Safe Production (Xintai Power Station)
• Grade I Enterprise Rating for Electricity Safety Production Standardization (Guyang and Yamansu Power Stations)
• Advanced Unit for Safe Construction (Urumqi High-tech Zone)
• Pandemic Prevention Benchmark Enterprise
• Advanced Unit of Double Control and Prevention

Environmental Metrics

ESG Focus Areas

• Production safety and occupational health
• Protection of employee rights and interests
• Safeguarding shareholders’ rights and interests
• Product quality
• Emission reduction
• Corporate governance
• Compliance with laws and regulations
• Technological innovation
• Information security and privacy protection
• Energy utilization
• Prevention of child labor and forced labor
• Anti-corruption behavior promotion
• Waste management
• Intellectual property protection
• Collaborative development with suppliers
• Strategic planning
• Customer service and satisfaction
• Water resource management
• Equal employment and employee diversity
• Supplier management
• Social responsibility
• Optimizing the supply system
• Staff training and development
• Responding to climate change

Environmental Achievements

• Reduced integrated power consumption per unit of polysilicon by 2.30% compared to the annual target.
• Decreased overall standard coal consumption per unit by 0.5% compared to the annual target.
• Achieved the goal of reducing water consumption per unit of polysilicon production year-on-year.
• Reduced the use of wooden and paper packaging materials per unit.
• Reduced damage of inner and outer packaging bags to less than 3%.
• Achieved a 100% recycling rate for solid wastes generated by its self-contained power plants.
• Reduced emissions per unit of hazardous and non-hazardous waste year-on-year.

Social Achievements

• 100% issue addressing rate for customer feedback.
• Customer satisfaction score increased by 1.6 points compared with the same period of the previous year.
• Zero cases of sold or delivered products that need to be recalled for safety and health reasons.
• Average training hours in the Group was approximately 281 hours per person.
• Proportion of trained employees reached 100%.
• No major labor disputes or any case of child labor, forced labor and discrimination.
• No punishment arising from serious violation of labor laws and regulations.

Governance Achievements

• Established an ESG Committee.
• 37 new systems implemented and 117 systems updated and revised during the Reporting Period.
• Zero material corruption-related litigations.
• Implemented anti-corruption requirements through publicity and training sessions.

Climate Goals & Targets

Environmental Challenges

• Extreme weather events (thunderstorms, frost, sandstorms, extreme temperatures) may affect the construction and operation of new energy projects.

Mitigation Strategies

• Uses long-term meteorological data and simulation to optimize project design and enhance resilience to extreme weather.
• Integrated data from mainstream meteorological sources and computing software to predict and provide early warning of meteorological disasters.

Supply Chain Management

Supplier Audits: 1,802 qualified suppliers registered; annual evaluation with A/B/C/D grading.

Responsible Procurement

• Safety and technological specifications of hazardous materials required from suppliers.
• Environment-friendly products and services required.
• Compliance with environmental and occupational health and safety laws and regulations.
• Risk identification and control measures for environmental and occupational health and safety.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events affecting project construction and operation.

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

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

Certifications: Green factory, green product, green supply chain, and green design certifications

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• New generation of 1,500V 3.125MW outdoor centralized PV grid-connected inverter products; optimized 228kW 40A string inverter products; three types of SVG products; new liquid-cooled battery cabinet 1.0 and string energy storage boost integrated unit; M3C inverter.

Awards & Recognition

• China Power Quality Project Award
• Hunan Province Quality Project Award
• Third Prize and Excellent Prize of the quality management group
• Second Prize of the quality management group
• Most Influential Power Station/Energy Asset Management Enterprise
• Most Influential Power Station Investment/Development/EPC Enterprise
• 2021 Most Influential Photovoltaic Inverter Enterprise
• China Excellent Photovoltaic Enterprise • 2021 Photovoltaic Leader
• Top Ten Inverter Suppliers
• Excellent Photovoltaic Material Supplier
• 2021 Carbon Peak Carbon Neutral Green Supplier
• Excellent Member Unit
• 2021–2022 Advanced Unit for Standardization Operation
• Grade II Enterprise for Safety Production Standardization
• Grade II Enterprise for Safety Standardization
• Winner of the “Ankang Cup”

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• R&D Innovation
• Products and Services
• Supply Chain Management
• Environmental Protection
• Employee Care
• Social Feedback

Environmental Achievements

• Reduced coal consumption of self-owned power plants by approximately 2,800 tonnes throughout the year, saving coal economic benefits of RMB970,000, and generating carbon economic benefits of RMB560,000.
• Annual domestic sewage recovery rate of 85.58%.
• Replaced finished polysilicon packaging boxes with recyclable integrated environmental-friendly large packaging boxes.

Social Achievements

• Organized 174 integrity trainings, 5 visits to the integrity education base, 1 “Ode to Integrity” poetry recitation competition, 1 integrity calligraphy and painting competition, 1 fun answer contest on integrity system.
• Distributed various holiday benefits to employees, with a total of more than 46,000 person-times and a total amount of more than RMB29 million.
• Completed vocational qualification level accreditation for 486 people.

Governance Achievements

• Established a compliance committee and office.
• Revised and improved the “Compliance Management System”, “Three Key and One Important Business Review Management System”, and “Major Business Review Process Review and Performance Standards”.
• No major deficiencies on internal control in the financial reports were found.

Climate Goals & Targets

Environmental Challenges

• Significant drop in the polysilicon market price, resulting in a decrease in operating revenue and net profit.
• Risks related to floods, strong winds/cyclones/typhoons, extreme heat, extreme cold, increasing pricing on greenhouse gas emissions, strengthening emissions reporting obligations, front-end costs of transitioning to low-carbon emissions technologies, uncertainty about investing in new technologies and achievements, changes in customer behavior, uncertain market signals, and stakeholders increasingly concerned about negative feedback.

Mitigation Strategies

• Developed detailed emergency plans for different physical risks; ensured the stability and diversity of the supply chain; adopted effective energy-saving and emission reduction measures; improved drainage systems; reinforced buildings, structures and equipment; adjusted working hours; provided cooling facilities; strengthened insulation; optimized project design plans; used computing software to simulate the evolution rule of atmosphere; strictly abided by relevant national and local regulations and standards; set clear greenhouse gas emission reduction targets; made regular public disclosure of greenhouse gas emission data; actively promoted the research, development and innovation of green and low-carbon products; increased R&D and operating expenses.

Supply Chain Management

Supplier Audits: 1,415 registered qualified suppliers

Responsible Procurement

• Requires registered suppliers to provide three system certifications (quality management system certification, environmental management system certification and occupational health and safety management); signs a safety and environmental protection agreement with registered suppliers; sets relevant evaluation indicators for suppliers’ environmental, occupational health and safety management levels; conducts on-site review and evaluation; promotes green and low-carbon transformation of the supply chain.

Climate-Related Risks & Opportunities

Physical Risks

• Floods, strong wind/cyclone/typhoon, extreme heat, extreme cold

Transition Risks

• Policies, laws and regulations; increasing pricing on greenhouse gas emissions; strengthening emissions reporting obligations; changes in customer behavior; uncertain market signals

Opportunities

• Construction of new energy system; renewable energy consumption; changes of customer preferences

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide

Certifications: ISO 29990:2010, GB/T 45001–2020/ISO 45001:2018

Sustainable Products & Innovation

• High-power inverters, enhanced SVG, and large-capacity static synchronous compensators; domestically produced string inverters of 320kW, 330kW, and 250kW, liquid-cooled battery cabinets, centralized 4.4MW inverters, and 4.4/8.8MVA inverter-booster machine series products

Awards & Recognition

• 2022 Advanced Collective for Legal Construction in Urumqi; Xinjiang Uygur Autonomous Region Science and Technology Progress Award (first prize); Guangdong Provincial Science and Technology Progress Award (first prize); Jiangsu Provincial Science and Technology Award (first prize); Jiangxi Provincial Science and Technology Progress Award (second prize); Science and Technology Progress Award of the China Electrotechnical Society (first prize); Xinjiang Uygur Autonomous Region Digital Science and Technology Progress Award (first prize); Xinjiang Uygur Autonomous Region Patent Award (2 first prizes and 1 second prize); “Zero Carbon Park” Standard Pilot; “Best Practice Entity” for the building and reform of industrial worker team in the new era of the Xinjiang Uygur Autonomous Region