Climate Change Data

Environmental Metrics

ESG Focus Areas

• Carbon Neutrality
• Poverty Alleviation
• Pandemic Response
• Corporate Governance
• Talent Development
• Public Welfare

Environmental Achievements

• Green Intelligent Link delivered more than 220 million kilometers in green mileage, resulting in 32,000 tonnes of carbon reduction and 29.547 million liters in fuel savings.
• Completed ISO 14001 environmental management system in all production bases.
• LEVC UK base achieved 100% renewable energy supply.
• 15 Geely products included in the Green Design Product list of the Ministry of Industry and Information Technology.
• Average weight reduction of more than 50 KG for 25 passenger vehicle models.

Social Achievements

• Timely Rain poverty alleviation project invested CNY 680 million, benefiting over 30,000 impoverished individuals.
• CNY 200 million special fund launched to combat the COVID-19 pandemic.
• Employed over 5,000 individuals from registered impoverished households.
• Invested over CNY 400 million in poverty alleviation through education.
• Employee satisfaction rating reached 88.6% in 2020.

Governance Achievements

• Established a stronger sustainability governance structure.
• Consolidated compliance management structure and strengthened compliance audit system.
• Awarded “Hangzhou Incorruptible Culture Demonstration Site”.
• Obtained ISO 27001 data security management system certification.
• No user data leakage or complaints about consumer data loss in 2020.

Climate Goals & Targets

Environmental Challenges

• Climate change related risks: acute risks from extreme weather events and chronic risks from persistent high temperatures and rising sea levels.
• Transition risks: policy and legal risks from evolving carbon neutrality targets, technical risks from increasing investments in new energy technologies, and market risks from changing consumer behaviors.
• Pandemic disruptions: challenges to the global economy and supply chain.
• Competition in the global automotive market.

Mitigation Strategies

• Formulated “Two Blue Geely Action Plans” to build a clean and green eco-friendly mobility ecosystem.
• Increased investments in R&D of new energy vehicles and built green factories and production lines.
• Strengthened pandemic prevention and control measures and organized Geely and the supply chain’s return to work.
• Made strategic adjustments to enhance corporate governance transparency and sustainability capabilities.
• Developed a comprehensive risk management framework and system to identify, evaluate, and manage climate risks.

Supply Chain Management

Supplier Audits: 99% of suppliers within Geely Auto and 97% within Geely Commercial Vehicle certified by IATF 16949.

Responsible Procurement

• IATF 16949, ISO 14001, and OHSAS 18000 incorporated into supplier evaluation criteria.
• Sustainability indicators included in supplier selection criteria for future joint development and procurement.

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons
• Heavy rainfall
• High temperatures
• Rising sea levels

Transition Risks

• Policy and legal risks from evolving carbon neutrality targets
• Technical risks from increasing investments in new energy technologies
• Market risks from changing consumer behaviors

Opportunities

• Development of electric, intelligent, and web-connected vehicles
• New energy technologies (pure electric, hybrid, plug-in hybrid, and methanol)

Reporting Standards

Frameworks Used: GRI Standards (Core Option), UN Sustainable Development Goals (SDGs), HKEX ESG Reporting Guide, TCFD, SASB

Certifications: ISO 9001, IATF 16949, ISO 14001, ISO 45001, ISO 27001

Sustainable Products & Innovation

• Polestar Precept with sustainable interior design solutions using recycled materials
• Geely Farizon Auto E12 pure electric city bus with “5A CN95 In-Cabin Wellness” certificate
• Volvo Cars XC40 RECHARGE with high-level battery safety

Awards & Recognition

• China Charity Award
• Outstanding Private Enterprises Engaged in the National Targeted Poverty Alleviation Action
• National Bases of Poverty Alleviation through Employment
• China Automotive Industry Science and Technology Award
• Hangzhou Incorruptible Culture Demonstration Site

Environmental Metrics

ESG Focus Areas

• Climate change
• Resource conservation
• Traffic safety
• Data responsibility
• Employee and social responsibility
• Ethical and responsible business

Environmental Achievements

• 11 manufacturing bases were rated as national-level green factories
• Achieved 46% renewable energy utilization rate at Volvo Cars Taizhou Plant by the end of 2021, and climate neutrality in electricity usage in 2022.
• Reduced total carbon emissions during the whole lifecycle of a single vehicle by 25% by 2025 (Geely Auto)
• Aims to achieve carbon neutrality across the entire value chain by 2045
• Reduced approximately 90,000 tons of CO2 into the atmosphere (LEVC TX)
• Reduced approximately 54.9 million litres of fossil fuel consumption and 534 million tons of carbon emissions (Cao Cao Mobility)

Social Achievements

• Established the ESG Committee and set up the ESG Task Force and Carbon Neutrality Task Force
• Officially joined the UN Global Compact
• Established Geely Thanksgiving Fund valued at nearly USD 500 million
• Timely Rain project invested CNY 693 million, achieving the honor of “National Advanced Collective on Poverty Alleviation”
• Launched Geely Common Prosperity Initiative
• Provided immediate aid for floods in Henan
• Listed among China’s 25 best workplaces for career growth
• Implemented share incentive schemes for Geely Auto and ZEEKR employees

Governance Achievements

• Established the ESG Committee and formulated Rules for the Environmental, Social, and Governance Committee
• Strengthened corporate governance by refining the three-tiered governance framework
• Improved compliance rules and management, carried out compliance risk governance, and raised compliance awareness among staff
• Formulated the Code of Conduct for Geely Suppliers
• Adjusted the Information Security Supervision Department to be a first-level department

Climate Goals & Targets

Environmental Challenges

• Climate change related risks: physical risks (extreme weather), transition risks (regulatory changes, market shifts)
• Supply chain disruptions due to climate events and the pandemic
• Risks associated with the automotive industry’s transformation towards electric vehicles
• Scarcity of non-renewable resources and energy

Mitigation Strategies

• Developed comprehensive development plans for passenger cars, commercial vehicles, and shared mobility
• Developed comprehensive development plans in 2021 for passenger cars, commercial vehicles, and shared mobility
• Continued breaking new ground in the fields of new energy technologies
• Established a one-stop carbon management platform and a professional carbon finance team
• Actively engaged in national carbon trading and green finance
• Regularly review the pandemic and risk status of affected areas, assess the supply risk of suppliers, and take control measures accordingly

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• IATF 16949 certification
• ISO 14000 certification (environmentally impactful suppliers)
• ISO 45001 certification (occupational health and safety)
• Blockchain technology for cobalt, mica, nickel, and lithium supply chain traceability (Volvo Cars)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather (typhoons, heavy rainfall)

Transition Risks

• Regulatory changes (carbon emission policies)
• Market shifts (demand for low-carbon products)

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI Standards, UN Sustainable Development Goals (SDGs), Ten Principles of UNGC, ESG Reporting Guide of the Stock Exchange of Hong Kong Limited, TCFD, SASB

Certifications: ISO 14001, ISO 27001, IATF 16949-2016, ISO 9001:2015

Sustainable Products & Innovation

• SEA (Sustainable Experience Architecture) platform for pure electric vehicles
• NordThor intelligent and high-efficiency hybrid power solution
• Methanol vehicles
• Leather-free Volvo cars using Nordico material

Awards & Recognition

• National Advanced Collective on Poverty Alleviation
• Listed among the Fortune Global 500 for ten consecutive years
• Southern Weekly “2021 Outstanding Award-Green Product of the Year”
• LOG 2021 Low-Carbon Supply Chain Logistics Innovation Excellence Award
• China Quality Award Nomination Award for Chinese Passenger Vehicles
• Outstanding Enterprise for Quality Management Activities in National Machinery Industry for 11 consecutive years

Environmental Metrics

ESG Focus Areas

• Climate Neutrality
• Nature Positive
• All-round Safety
• Digitalization & Innovation
• Co-Prosperity
• Governance and Ethics

Environmental Achievements

• Reduced lifecycle carbon emissions per vehicle by 8% compared to 2020 baseline.
• Vehicle plants' water consumption intensity decreased 10.8% to 3.1 tonnes/vehicle in 2022.
• 9 national "green factories" and 5 municipal "waste-free factories" for vehicle manufacturing.
• Industrial water recycling rate: 98.3%

Social Achievements

• Female proportion in senior personnel reached 10%, an increase of 2% from 2021.
• Employee satisfaction rate: 88.4%
• Launched Z-Green, a carbon inclusive platform for Zeekr users, resulting in 15,764 tons of carbon reduction.

Governance Achievements

• Optimized board composition; proportion of female directors increased to 27% at year-end.
• Average tenure of independent non-executive directors decreased by 4.4 years.
• Publicly issued Code of Conduct and Anti-Corruption Policy; 100% employees signed Compliance Statement and Conflict of Interest Declaration.
• ISO 27001 & CSMS Management system certification in information security & automotive cybersecurity.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to extreme weather events.
• Rising material costs due to tight supply of low-carbon materials.
• Transition risks from regulatory changes and market shifts.
• Potential job losses due to new energy transition.

Mitigation Strategies

• Developed alternative sourcing strategies.
• Participated in collaborative R&D of low-carbon materials.
• Developed climate neutrality strategy, carbon reduction targets, and related measures.
• Provided training and job rotation opportunities to employees.

Supply Chain Management

Supplier Audits: 86% of tier 1 suppliers reviewed in 2022

Responsible Procurement

• Geely Supplier Code of Conduct
• Drive Sustainability Self-Assessment Questionnaire
• Green procurement guidelines

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Sea level rise

Transition Risks

• Policy and legal changes
• Technological advancements
• Market shifts
• Reputation risks

Opportunities

• Resource efficiency
• Renewable energy
• Low-carbon products and services
• Green financing

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide, GRI Standards, TCFD Recommendations, SASB Standards

Certifications: ISO 14001, ISO 45001, ISO 27001, CSMS

Sustainable Products & Innovation

• New energy vehicles
• Methanol hybrid vehicles

Awards & Recognition

• Standard Chartered Corporate Achievement Awards 2022 Sustainable Corporate (Environmental) Leadership Award
• Ernst & Young Sustainability Excellence Awards 2022 Excellence Award for Companies
• KPMG China Future - ESG Awards 2022 Best ESG Report Award (Non-Financial)