Sustainable development Governance
1. ESG Management System
We have established a top-down, fully participatory, multi-level ESG management structure to ensure clear responsibilities, strong implementation and continuous improvement.
- Board of Directors Strategic oversight:
◦ The Board of Directors, as the highest decision-making and supervisory body, is responsible for finalising the Company's ESG strategy, medium- and long-term goals and major issues to ensure that they are in line with the Company's business strategy.
◦ Establish a "Sustainability Committee" (or the Nomination, Remuneration and Evaluation Committee under the Board of Directors) comprising directors with relevant professional backgrounds to regularly review ESG performance reports and oversee strategy implementation.
- Management Execution & Integration:
◦ A general manager or core executive is the first person responsible for ESG work and leads a cross-departmental "ESG working group".
◦ The group consists of the heads of key departments such as EHS, R&D, production, procurement, human resources, investor relations, etc., and is responsible for breaking down ESG objectives into specific annual action plans and integrating them into each department's day-to-day operations and performance appraisals (KPIs).
- Departmental & Whole Personnel Implementation:
◦ Embed ESG requirements into the whole business process of product development, raw material procurement, manufacturing, sales and service.
◦ Enhance ESG awareness of all employees through training, publicity and incentives, and encourage employees to practice the concept of sustainable development in their daily work.
- Performance Evaluation and Continuous Improvement:
◦ Establish an ESG Key Performance Indicator (KPI) system to regularly monitor, assess and disclose the achievement of environmental, social and governance objectives.
◦ Conduct internal audits and management reviews annually, and continuously optimise the ESG management system and management strategies based on the results and stakeholder feedback.
2. Policy System
We have developed and implemented a series of rigorous policy systems to provide clear norms and guidelines for responsible business behaviour.
- Business Ethics and Anti-Corruption Policy:
◦ Anti-Corruption and Anti-Business Bribery Policy: clearly prohibits any form of corruption, bribery, and fraud, and stipulates the standards for gifts and hospitality, requiring employees and business partners to abide by them.
◦ Whistleblower Protection System: Establishes independent and confidential reporting channels and strictly prohibits any form of retaliation against bona fide whistleblowers.
- Compliance Business Policy:
◦ Compliance Manual: requires strict compliance with all applicable domestic and international laws and regulations, industry standards and business practices.
◦ Data Security and Privacy Protection Policy: Establishes strict measures to protect the data security and privacy rights of customers, employees and partners.
- Supply Chain Responsibility Policy:
◦ Supplier Code of Conduct: Incorporate requirements for environmental management, labour rights, health and safety, and business ethics into procurement contracts as core criteria for selecting and evaluating suppliers.
◦ Implement supplier ESG risk screening and auditing to promote upstream and downstream partners to jointly enhance sustainable development.
- Risk Management Policy:
◦ Comprehensive Risk Management System: systematically identify, assess and manage all types of risks, including strategic, operational, financial, legal and ESG risks, and formulate contingency plans.
◦ The internal audit department regularly conducts independent audits on the effectiveness of ESG-related processes and controls.
