Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Increased renewable energy usage to 22.6%
• Achieved an average PUE of 1.34 for self-developed data centers
• 25% of self-developed data centers newly in service in 2020 have received, or are applying for, green building certification

Social Achievements

• Achieved a customer satisfaction score of 9.556 out of 10
• 34% of senior-level management team is female
• Average training hours per employee per year: 31.3

Governance Achievements

• 100% of full-time employees completed compliance and anti-corruption training
• 100% of full-time employees completed cyber security training
• Established an ESG Management Framework

Climate Goals & Targets

Environmental Challenges

• High energy intensity of data centers
• Limited access to renewable energy resources in Tier 1 markets
• Balancing the need for capacity in Tier 1 markets with sustainability goals

Mitigation Strategies

• Roadmap to achieve 100% renewable energy and carbon neutrality by 2030
• Direct purchase of renewable energy
• Investment in renewable energy projects
• Purchase of RECs
• Onsite renewable energy systems
• Green data center design and construction

Supply Chain Management

Supplier Audits: 100% of engineering and equipment suppliers underwent EHS review

Responsible Procurement

• Supplier Code of Conduct
• Third-Party Due Diligence Questionnaire
• Letter of Commitment for Sustainable Development

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, Nasdaq ESG Reporting Guide 2.0, HKEX Environmental, Social and Governance Reporting Guide

Third-party Assurance: Bureau Veritas

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Increased renewable energy usage to 34.3%
• Improved Power Usage Effectiveness (PUE) to 1.32
• 68% of newly in-service self-developed data centers received or are applying for green building certification
• Chengdu #1 and Shanghai #3 data centers achieved 100% renewable energy use

Social Achievements

• Released Smart DC solution
• Increased engagement with suppliers on sustainability initiatives
• Aided communities in urgent need (Henan flood relief)
• Annual training hours per employee rose from 31.3 to 38.2

Governance Achievements

• 100% of employees received compliance and anti-corruption training
• All employees attended cybersecurity courses
• Established ESG Management Framework and Sustainability Committee

Climate Goals & Targets

Environmental Challenges

• Regional governments rationing grid power, requiring use of backup power (diesel generators)

Mitigation Strategies

• Developing alternative sourcing strategies for renewable energy (RE DPP, RECs, renewable energy investment projects)
• Developing a Data Center Precise Energy Management Operation Manual and an Energy Management Implementation Manual

Supply Chain Management

Supplier Audits: 100% of engineering and equipment suppliers underwent EHS review

Responsible Procurement

• 100% of suppliers required to sign our sustainable development commitment letter

Climate-Related Risks & Opportunities

Physical Risks

• Extreme rainfall and flooding (Henan)

Opportunities

• Development of energy-efficient products and solutions (Smart DC solution)

Reporting Standards

Frameworks Used: GRI Standards, Nasdaq ESG Reporting Guide 2.0, HKEX Environmental, Social and Governance Reporting Guide, TCFD recommendations

Certifications: ISO 14001, ISO 50001, ISO 14064, ISO 45001, ISO 27001, ISO 22301, LEED, ODCC Green Data Center Certification, MIIT Green Data Center Certification

Third-party Assurance: Bureau Veritas

Sustainable Products & Innovation

• Smart DC solution

Awards & Recognition

• Zero Carbon Data Center designations (Chengdu #1 and Shanghai #3)
• First prize of the 2021 Data Center Science and Technology Achievement Award (ROCC platform)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Renewable energy usage reached a record high of 35.9%
• Annual average power usage effectiveness (PUE) improved to 1.29
• 77% of data centers obtained or applying for green building certification

Social Achievements

• Record-high customer satisfaction rating of 9.619 out of 10
• Comprehensive employee training programs
• Successfully mobilized suppliers to embrace ESG and EHS initiatives
• Growing focus on long-term charitable projects supporting children’s education

Governance Achievements

• Obtained ISO 27701 Privacy Information Management System (PIMS) certification
• Published GDS Information Security Technical Brochure
• Established an Intellectual Property (IP) Management Committee

Climate Goals & Targets

Environmental Challenges

• Climate change related physical risks (flood, typhoons, drought, extreme heat)
• Climate change related transition risks (policy and regulation changes, litigation risk, transition to low-emission technologies, energy costs rises, changes in customer behavior, reputational risks)

Mitigation Strategies

• Technological upgrades and innovations
• Lean energy management
• Increasing the proportion of clean energy use
• Replacing thermal power with clean energy
• Gradually replacing diesel with HVO, hydrogen and other low-carbon fuels
• Developing low-carbon services and sustainable solutions
• Strengthening the company's climate change adaptation capacity
• Improving the entity's risk contingency plan
• Increasing the proportion of clean and renewable energy sources

Supply Chain Management

Supplier Audits: 100% of engineering and equipment suppliers

Responsible Procurement

• Supplier Code of Conduct
• Third-party due diligence questionnaire
• Letter of Commitment for Sustainable Development
• EHS review

Climate-Related Risks & Opportunities

Physical Risks

• Flood
• Typhoons
• Drought
• Extreme heat
• Sea level rise
• Increase in average temperature

Transition Risks

• Mandatory requirements and regulation of existing products and services
• Litigation risk
• Transition to low-emission technologies
• Energy costs rises
• Changes in customer behavior
• Increased concerns or negative feedback from stakeholders

Opportunities

• Development of energy-efficient products and services
• Expansion of domestic and international markets with green and intelligent infrastructure

Reporting Standards

Frameworks Used: GRI Standards, Nasdaq ESG Reporting Guide 2.0, Hong Kong Exchanges and Clearing Limited (HKEX) ESG Reporting Guide, TCFD

Certifications: ISO 14001, ISO 50001, ISO 14064, ISO 27001, ISO 27701, ISO 22301, LEED, ODCC Green DC Certification, MIIT Green DC Certification

Third-party Assurance: Bureau Veritas

Sustainable Products & Innovation

• Smart DC solutions
• Modular design and construction approach
• Liquid cooling solutions
• Refrigeration pump

Awards & Recognition

• Bloomberg Green “Environmental Pioneer of the Year” Award
• Ernst & Young (EY) Sustainability Excellence Awards 2022 – Best Practice/Case
• Greenpeace Clean Cloud 2022 Report (first place among all data center operators)
• Institutional Investor 2023 All-Asia Executive Team Awards (Best ESG)
• China IDC Industry (Greater Bay Area) Annual Ceremony awards
• Shanghai Municipal Commission of Economy and Informatization “Zero-Carbon Benchmark Data Center” award